Jim Rogers Says the US Will Certainly Lose Its
AAA Credit Rating
global investor and chairman of Singapore-based Rogers Holdings,
Jim Rogers expects the US to lose its AAA credit rating after Standard
& Poor's revised its outlook on US sovereign debt to "negative"
last week the United States had until 2013 to come up with a credible
plan for addressing its financial problems.
Week, Rogers said: Eventually it will happen. Not
this month, or this quarter, but it is certainly going to happen.
is the largest indebted nation in the history of the world and the
debt is going higher and higher," Rogers added.
A new report
from Deutsche Bank ranks the US government as the world's fourth
riskiest sovereign borrower, behind Greece, Ireland and Portugal,
and just ahead of Italy.
the US has, relative to its 'AAA' peers, what we consider to be
very large budget deficits and rising government indebtedness and
the path to addressing these is not clear to us, we have revised
our outlook on the long-term rating to negative from stable,"
S&P said in a statement.
than two years after the beginning of the recent crisis, U.S. policymakers
have still not agreed on how to reverse recent fiscal deterioration
or address longer-term fiscal pressures," said S&P credit
analyst Nikola G. Swann.
is printing money to solve this problem and I cannot imagine lending
money to the US government for 30 years in US dollars at 3%, 4%,
5% or 6% interest, as the government will never be able to pay off
those debts, Rogers told Investment Week.
Times (ET), the renowned investor reiterated he was poised
to sell short US treasury bonds.
no position in US treasury bonds. I am waiting to sell them short,"
to sell short US government bonds sometime in the next few weeks,
months. Interest rates all over the world are going to go higher.
We have inflation, staggering debt problems and currency problems
facing us. So interest rates are going to go higher," he added.
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Rogers has taught finance at Columbia University's business school
and is a media commentator worldwide. He is the author of Adventure
Gift to My Children, and A
Bull in China. See his
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