The increasing foreign debt of the United States has created fundamental problems for its economy and the US dollar will lose its position as the world's reserve currency, renowned American investor Jim Rogers said.
"The US dollar is and has always been the world's reserve currency; that is in the process of changing." Rogers said during a presentation at the IFSA annual conference at the Gold Coast on Wednesday.
"America is out of control," he said.
He pointed out that the US is now the world's largest creditor, having US $13 trillion in outstanding foreign debt.
"But what is even worse is that our foreign debts are increasing at the rate of US $1 trillion every 15 months."
Rogers believes China will become the world's next dominating economy.
"In China, they save and invest over 35 per cent of their income. In the United States, we save and invest less than 2 per cent of our income."
Rogers made fame and fortune with his Quantum Fund, which he founded with George Soros in 1970. He retired in 1980 at the age of 37 and started to travel the world.
In his most recent world trip, he drove an egg-yellow, custom-build Mercedes through 116 countries in three years, covering 245,000 kilometres.
"The best advice that I can give is to teach your children and your grandchildren Chinese. It's going to be the most important language in their lifetime."
