Sterling disaster looms, says Jim Rogers

Jim Rogers

EDIT: Please note that Jim Rogers denies making this comment. Please read this post for his response.

The pound could collapse “within weeks”, says Jim Rogers (right), co-founder with George Soros of the Quantum Fund which took down the pound in 1992 (he is also a currency trader, presumably short the pound).

“Other currencies aren’t strong and the Euro has real problems, with cracks much wider than Greece beginning to show,” Rogers continues, “but it’s the Pound that’s most vulnerable. In real terms, it’s already devalued against virtually every currency barring the Zimbabwean dollar and it’s 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.”

It is worth pointing out that it is almost exactly 13 months since Rogers said this:

“I would urge you to sell any sterling you might have,” said Rogers. “It’s finished. I hate to say it, but I would not put any money in the U.K.”

That isn’t to say he’s wrong; the British economic position is dire, the Bank of England might resume printing money, and both Labour and Conservatives are desperately avoiding spelling out cuts for fear that they will lose votes. But just because he’s a “financial guru”, doesn’t mean he’s always right, either.

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Christopher Cook is an FT editorial writer. Before joining the FT in 2008 as a Peter Martin Fellow, he worked for three years for the Conservative party.

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