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The pound is on the brink of a collapse which will herald a downturn worse than 2008/9, warns George Soros' former business partner.
Billionaire Jim Rogers says the currency collapse will foreshadow a global economic winter which could hit before the end of the year, and make the last two years seem like "a mild spring day".
He says: "In real terms, the pound is already devalued against virtually every currency barring the Zimbabwean dollar and it is especially exposed over the weeks running up to the UK election.
"In a basket of currencies, the pound is potentially a basket case. And that will put Britain in an extremely bad position for the shakedown."
Rogers' forecast comes as Swiss bank UBS warns of a possible run on the pound, if the Tories enact their promise to cut the public deficit by immediately slashing spending following a win at the next General Election.
Sterling hit a nine month low against the dollar on Friday.
Rogers says a currency crash and then a full scale global "shakedown" are almost inevitable.
"The last few months have seen a ‘false bounce', shorn up by massive short-term injections of government underwriting," says Rogers.
"But it can't last. We've been applying temporary sticking plasters, not long-term cures. Later this year we'll see the start of the real recession, with more Lehman-scale disasters and a fallout which won't stop until the underlying malaise is genuinely cured."
"The euro has real problems, with cracks much wider than Greece beginning to show, but it's the pound that's most vulnerable."
Rogers clashed with Lord Mandelson last year after he predicted Britain would lag far behind other economies in returning to growth.
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What are the odds that "Billionaire Jim Rogers" isn't going to get richer? he's going to make millions like he did last time the pound suffered. I agree with David, if he's so good then let him tell us how to get things right!!!
Posted by: Barry
Predictions
Sounds like Jim Rogers is trying to engineer a collapse in the pound. No doubt he will make a stack of cash if this happens.
Posted by: Simon
He's usually right
Jim Rogers did not become a billionaire by being wrong most of the time... He was also right on his commodities and agricultural calls in the past few years.
Posted by: Tony
THINK
You foolish lazy sheeple. The man is trying to warn you.He is a billionare because he gets it right most of the time. Think for yourselfs you fools.All paper fiat money is going to be devalued. Buy gold, silver and stock up on a few months supply of food. There , i ve told you what to do. Now if the sh-t hits the fan and your not prepared , you ve only got yourselfs to blame.
Posted by: ozzy
WAKE UP!!
I didn't realize there were so many "grasshoppers" as compared to "ants"! Look at the world situation. I'm in North America and things are falling apart all over . . But you're going to need more than a few months of food/water/etc.etc. Step back and look at the whole picture . . It's the "Nay-Sayers" who are going to get caught short. People are losing their jobs, their homes, living in tent cities . . . Not only that, earthquakes, tornados, hurricanes, drout, flooding, etc. are all on the rise. You can't fix this . . . get on your knees!
Posted by: Carol
Retracted
see pressdispensary com The press release on which Ms Miller's article was based (copied) was retracted. I guess everything is just fine, then...
Posted by: Gary
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I am I alone in being truly sick and tired of "expert" predictions. If this guy is so good or so correct why is he not heading the pack in recommending exit/alternative strategies?
Posted by: David