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Prominent Investor:
Pound Could Collapse Within Weeks
British currency is on the brink according to
billionaire financier
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 Update:
Financier Jim Rogers denies saying pound will collapse
Billionaire financier Jim Rogers has predicted that the British
Pound could completely collapse within weeks, sending shockwaves
throughout the global economy and heralding the beginning of
a downturn that would make the recent economic crisis look tame
in comparison.
“Other currencies aren’t strong and the Euro has
real problems, with cracks much wider than Greece beginning
to show,” Rogers said.
“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.”
“The last few months have seen a ‘false bounce’,
shorn up by massive short-term injections of government underwriting,”
Rogers, the former business partner of George Soros, said.
“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.” he added.
Rogers was quoted
in a press release ahead of a keynote appearance
at next month’s Global Trading Day seminar in Westminster
along with investment advisor Dr Marc Faber and British trader
Vince Stanzione.
The British economy is facing a "double dip" after
January figures put the idea of a recovery firmly on the backburner.
Rogers' sentiments echo those of Swiss Bank UBS, which this
week speculated that there could
be a run on the pound if the government too aggressively
tackles Britain's huge deficit, projected to reach £178bn
this year.
Last week, Sterling hit a nine month low against the dollar,
falling to $1.05, and slumping beyond parity for the first time
against the euro.
An
announcement yesterday by Mervyn King, the Governor
of the Bank of England, that the bank was ready to print more
money and "do whatever seems appropriate”, sent the
currency sinking once more.
Sterling fell sharply, from $1.5529 at 9.13am, just before
King began speaking, to $1.5398 at 10.30am, when he finished
giving evidence to MPs.
The stark downturn has led Jim Rogers and Marc Faber to predict
a currency crash foreshadowing a full scale global “shakedown”.
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INFOWARS:
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