The good news: the DJIA could hit 20,000. The bad news: the dollar will be worthless. Rogers, in this interview on CNBC, says he has no shorts for the first time in his career because so much money is being printed - having the potential to juice equities.
Rogers says he expects there to be a currency crisis either later this year or next year, and it may even be the U.S. dollar – but it will be major currencies and it will be widespread.
Rogers says he thinks the U.S. dollar, "a terribly flawed currency," is going the way of the Pound Sterling. Regarding China, he says the idea that China is stuck with its 2 trillion in U.S. treasuries misses the point; China can stop buying and "somewhere along the line someone, whether the south Koreans or the Russians or someone is going to say ‘I’m going to start selling mine before somebody else does’, and that’s when you have a currency crisis".
Regarding SDRs, Rogers says that "phony money" won’t work, but the world does need something.
On the bond market, Rogers says it's indicating two things. "It’s indicating crazy inflation coming and it’s indicating gigantic debts, which the U.S. government is going to have to sell." To protect himself, he’s going to short bonds.