Bloomberg:

The dollar’s rally is set to end in a “currency crisis,” investor Jim Rogers said, adding that he may bet on a slide in equities after nine weeks of gains.

The advance in the U.S. currency has been driven by investors covering their short sales, Rogers, 66, said in an interview with Bloomberg Television in Singapore. He may consider adding to his holdings of the yen and prefers the euro to the dollar or the pound, the investor added.

“We’re going to have a currency crisis, probably this fall or the fall of 2010,” Rogers said. “It’s been building up for a long time. We’ve had a huge rally in the dollar, an artificial rally in the dollar, so it’s time for a currency crisis.”

My comment: The US is following the example of other failed empires throughout history. It is spending too much money and is engaging in foreign wars that are sapping it economically. The hubris and lack of historical perspective of the American people and its leaders is staggering. Do people really think we can return to prosperity by continuing to borrow and print money and there will be no consequences? Do people think that more government interference and control of the economy will really lead to better economic outcomes? Where in history has this been true? Are people really that stupid and I mean that not in the clinical sense of having a low IQ but by pursuing policies that are destructive to ones self and to the country as a whole.

As a side note I sold out my position in non commodity plays like Geoeye and Crucell. The bear market rally appears to over and it looks like we may be heading back down to test the old lows. I am not going short as the market is so schizo it could go higher or lower. However the economic green shoots appear to be wilitng so that will be reflected in lowr stock prices in my opinion.

John Polomny
The Real Deal