Dollar Dollar Bill, Y'all

Investment guru Jim Rogers says a dollar currency crisis is on the way as the next leg of the continuing financial disaster.

"How can the solution for debt and consumption be more debt and more consumption? How can that be the solution to our problems?," he said.

"I would expect there to be a currency crisis or a semi-crisis this fall or next year. It's crony capitalism, Bernanke and Greenspan have brought crony capitalism to America … but that's not going to solve the world's problems," Rogers added.

There are still "gigantic amounts of horrible, horrible debt that hasn't been dealt with" in Central Europe, while hopes that China will pull the world out of recession are overblown, according to Rogers.

"China saved up a lot of money for a rainy day, it's raining and it's spending it," he said. "But China cannot pull out America or India or Europe from all this. Their economy is a 10th of the US. Hallelujah, let them do good things but they're not going to save the world."

The Federal Reserve has tripled its balance sheet and the US government's debt skyrocketed, which may cause currency problems next year, while protectionist tendencies have already started, he warned.

On Monday, China has requested World Trade Organization talks over US-imposed duties on Chinese-made tires, which China has branded protectionist.

"We're going to have some serious problems in currency markets, we're going to have serious problems in the world markets if we see protectionism rising and rising again," he said.

Rogers has two good points: bailing out the financial industry had added trillions to our national debt, and protectionism is already on the rise, witness the growing trade rift between the U.S and China that has gotten a lot more serious this month. China has responded to U.S. tariffs on Chinese tires by threatening to do the same to U.S. chicken and auto parts imports to China.

And it's only going to get worse. The U.S-China trade imbalance simply can't survive this recession. Something's going to have to give on a permanent basis, and the results may change the entire global economy for decades.

Keep an eye on this trade war. The first shots have been fired, and the whole world will soon be reacting to it.