Rogers Predicts U.S. Recession, Worst `in a While'

By Saijel Kishan and Mark Barton

Jan. 7 (Bloomberg) -- The U.S. economy is heading for a recession that may be the worst ``in a while'' and investors should sell the dollar as global currencies weaken, investor Jim Rogers said. ``It's going to be one of the worst recessions we've had in a while because we had so many excesses going into it,'' Rogers, chairman of New York-based Rogers Holdings, said in a Bloomberg Television interview today from Singapore. ``It's going to be bad for all of us as currencies come under more and more stress and we have more inflation in the world.''

The U.S. and U.K. governments have been ``lying'' about inflation, Rogers said, adding that he's sold their respective currencies.

The dollar dropped for a second straight year in 2007, falling 8.3 percent on a trade-weighted basis as the collapse of the U.S. subprime-mortgage market prompted the Federal Reserve to cut interest rates three times. Rising energy and food prices have pushed up inflation in Europe.

``I hope by the end of this year all of my assets will be out of the U.S. dollar,'' Rogers said. ``The dollar is a currency that's terribly flawed and it's going to be under duress for many years to come.''

Rogers said in a Nov. 15 interview that investors should sell the dollar and that he expects to be rid of all his U.S. currency assets this year.

He reiterated today that he's also buying the Chinese yuan and the Swiss franc as other currencies weaken.