Jim Rogers predicts major recession from US trade policies

Renowned investor Jim Rogers, co-founder of the Quantum Fund with George Soros, has issued a warning about the potential economic consequences of President-elect Donald Trump’s “America First” trade policies.

Speaking to The Financial Chronicle, Rogers argued that such policies could trigger significant global economic instability, leading to what he described as the “biggest recession ever.”

Rogers pointed out that trade restrictions against countries like China and India could harm not only the global economy but also the United States itself.

“Mr. Trump’s ‘America First’ policy will hurt not just China, but the whole world. Trade regulations are not good for anybody. It is not good for the world and for his own country,” he stated.

Addressing domestic economic challenges, Rogers highlighted ongoing inflation and the growing national debt as critical threats.

“The U.S. already has an economic problem, which includes inflation. Though central banks are cutting rates, the issue of inflation has not been resolved yet. It will come back with the trade war more aggressively,” he remarked.

Rogers believes that attempts to address these economic challenges could lead to missteps with widespread repercussions.

“The U.S. has a huge debt. When Mr. Trump will try to solve economic problems, he will make mistakes, and that is bad for the world. It will affect the entire world, and we will see the biggest recession ever,” he predicted.

As an alternative to trade restrictions, Rogers suggested focusing on reducing national debt and spending.

He advised against restricting trade with major partners, noting that such actions would exacerbate economic issues.

“When turmoil comes, usually investors look for a safe haven… But the dollar is not a sound currency,” Rogers noted, recommending commodities such as gold as a safeguard for investment strategies during downturns.

Rogers has repeatedly cautioned about impending economic downturns, emphasising rising global debt and financial bubbles as significant risks.

He has also raised concerns about the declining status of the U.S. dollar as the world’s reserve currency, influenced by the country’s substantial debt and the use of sanctions that weaponise the currency.