Legendary investor Jim Rogers believes that America’s foreign creditors are growing increasingly tired of holding U.S. assets. Reuters’ Jennifer Ablan and Dan Burns wrote this morning:

Jim Rogers, a prominent international investor, on Monday predicted that many creditor nations could start shunning U.S. assets, particularly Treasuries, as the economic crisis lingers on.

“If I were the Chinese, I wouldn’t buy another single U.S. government bond,” said Rogers, who was speaking by teleconference in an interview with Reuters. “I can’t imagine anybody is going to give the U.S. government money for 30 years at 2.5 percent or even 4 percent or 4.5 percent. It’s mind boggling to me.”

The Singapore-based investor told Reuters:

All the big creditors are going to be slowly cutting back… more and more diversification against and away from the U.S. dollar — and away from long-term bonds.

Source:

“Jim Rogers: US creditor nations to shun Treasuries”
Jennifer Ablan, Dan Burns
Reuters, January 12, 2009

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