Jim Rogers Backs the Buck

The government reported Thursday that the trade deficit fell $1.4 billion in August to $57.6 billion. The drop marks another notch down from the deficit's $68.6 billion record in August of last year. The rebalancing comes not from imports, but from rising exports, which will add about 0.66% to the measure of third quarter GDP growth, according to Brian Bethune, U.S. economist at Global Insight.

Rogers believes Federal Reserve was wrong to slash the fed funds rate by 50 basis points in September, and that exuberant money-printing will be a key catalyst for the long-term demise of the dollar.

"The fool went and cut interest rates with the stock market down 6%," he says of Fed Chairman Ben Bernanke. "What's he going to do when stocks are down 30%?"

He says Bernanke and the Fed are ignoring obvious evidence of inflation in food, education and entertainment prices.

"This is a man who's made a career learning about printing money and now we've handed him the printing press," he says, likening Bernanke to his predecessor Alan Greenspan in their penchant for saving the markets by cutting rates and inflating asset bubbles.

Rogers is a believer in the global growth story, particularly China's. He said he's sold out of all his emerging market investments except for his investments in China, claiming the other emerging nations have "been exploited by 20,000 MBAs running around looking for markets."