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Welcome back. President Trump focusing on the economy. Yesterday, I spoke with Treasury Secretary Steven Minutuchin and emphasized the strength of the dollar. Watch. I I think that in the short term, there's certain issues of a strong dollar that are beneficial. There's certain issues that are not beneficial and and we acknowledge that.
Um I think as it relates to the long-term, again, the dollar has been the major reserve currency. It's been where people want to invest. And I think if you look at the strength in the dollar, it's like the strength in the stock market. That that's people voting with confidence in the Trump administration plan and the economy for the US.
Joining me right now is Rogers Holdings Chairman Jim Rogers. Jim, good to see you. Thanks for joining us this morning on Skype. So the Treasury Secretary says confidence in Trump has bolstered these markets in the dollar, but the dollar is up better than 20% uh since election day. When does the dollar become too strong that it actually hurts the economy?
Well, Maria, I'm long a lot of dollars as we've discussed before. I'm long the dollars because I expect turmoil in world financial markets and people are looking for a safe haven. It's going to get overpriced. It might even turn into a bubble before this is over. So, what do you think about Trump's policies and and the impact on the economy in the US, Jim?
Well, so far he hasn't. There hasn't been much of a policy other there's been some talk. He said he was going to put up big tariffs, which he has not done. I Nobody wants a trade war. I mean, so far he said some good things. He says he's going to cut taxes. He says he's cutting regulations. He says he's going to build infrastructure.
All of that's great, Maria. If he does it without a trade war, we could have a good time for quite some time. So, so we've got a great panel here this morning, Jim. Uh what about that? Can Can he do it and not impact trade relationships and do these bilateral trades? What do you guys think? Well, I mean, you you you see two of his deputies down in Mexico yesterday taking a softer line than the president has taken with uh with Mexican officials.
So, it seems like they're kind of playing a good cop bad cop game where the president himself is the bad cop talking tough and then you have the secretary of state saying, "Hey, let's let's talk about this. Let's negotiate. Let's come to some kind of amicable agreement." Sounds like you you think you could do it.
But and but that's the appropriate role, right? That is a diplomat being diplomatic where you've got the the chief sort of driving the bus and he's bombastic and everyone knows that and saying here's my agenda and as you say a bad cop and then it's up to Tillerson and others to go down and say okay we're following his points overall.
We're all moving in the same direction but let's talk right that that's the I think an appropriate dynamic. Sometimes it's the other way around. Usually it's a president who's the diplomat actually and then you send out your troops to do the tough talk. But obviously President Trump likes to be in that power of in the position of power in the position of strength.
I don't foresee tariffs in in the future in terms of I really don't I there's something though that he's going to do in terms of a border tax. I mean it could be some I mean you know other countries charge a tax a hundred other countries Jim Rogers charge some kind of a tax on on import. So many people say that this is just ketchup on the US's part.
Well, we have plenty of tariffs too, too, Maria. Maybe not as obvious as as some of the other countries you're talking to, but back to the point, if there's going to be a trade war, trade wars have never been good for anything. If he does other parts of his of his agenda, we could really have a good time.
He says he's there, you know, three trillion US dollars abroad held by American companies. If he can get those three trillion to come back to help finance build infrastructure, I mean, in theory, Maria, this could be really good. But trade wars have never been good for anybody. So, Jim, I want to come back to something else you said.
You said you're positioning yourself for a global financial meltdown. Tell us more about that. That's might that might be the headline here. What where's this meltdown coming from? Well, if there's going to be a trade, Mr. Trump promised many times that he would put 45% tariffs on China the first day and tariffs on Mexico the first day.
Now, he hasn't done it as we all know, which is good news. He also said he was going to call China a currency manipulator the first day and he he didn't do that. I'm sorry, what? He also said he was going to call China a currency manipulator on the first day and they didn't do that. No, no, I know he hasn't done some of those things he said and that's good news.
Yeah, maybe somebody has tempered him and explained how the world works. Uh if if we don't have trade problems and we do the good things he wants to do, it could be bad. The reason I own the dollar so many dollars and have for some time is because I do expect some kind of financial turmoil in the next couple of years to good use if that's what else are you exposed to?
How else are you allocating capital real quick Jim? Russia, uh, mainly Russia, agriculture, the US dollar in a nutshell. Very, very similar positions that you've had for a long time. Jim Rogers, it's great to see you. Thanks so much. Thank you, Maria. We'll see you soon. Jim Rogers joining us there on Skype.
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