Warren Buffett on why the dollar will sink

[gateley]

(Sorry if this has been posted before)

US investors worried about a possible recession also need to fret over the weakening dollar, which, if its value continues to slide, would further erode the value of American assets. They should heed Warren Buffett's warning that the greenback has further to fall.

"In the future, I would predict that the US dollar will decline," Buffett, the world's second-richest man, said Wednesday at a Canadian business conference in comments transcribed in the National Post.

"I don't know what it will look like in the short term, but force-feeding the rest of the world $2 billion a day is inconsistent with a stable dollar."

It doesn't take a financial genius to see the stiff head winds facing the currency. Like many experts, Buffett points to the US' gargantuan trading deficit as the heart of the problem.

snip

Investors should listen to Buffett's thoughts on the currency: He's made part of his sizable fortune by correctly predicting its course before. His Omaha, Nebraska based holding company, Berkshire Hathaway, reaped billions earlier this decade after making a huge bet the dollar would fall.

snip

Other currencies are looking more attractive to the Oracle of Omaha. He told the Financial Post Wednesday he made several hundred million dollars betting on the Canadian dollar. Although he already exited the positions, he said he wished he had kept them.


The only current currency position for Berkshire Hathaway is the Brazilian real. It's been another lucrative move for Buffett's holding company. Since May 2004, the value of the Brazilian currency in dollars has increased by over two-thirds.

snip

more..... http://freemanstrikes.blogspot.com/2008/02/warren-buffett-on-why-dollar-will-sink.html

[whistle]

1. BushCo can add hyperinflation of the dollar to their list of total failures

[pitohui]

2. they don't consider this to be a failure

bush said at the beginning of his first term that he planned to follow a "soft dollar" policy, it is his only policy that could be said to be a success, in that, he said he was going to do something and he actually did it

considering that it screws america, i was always amazed that there wasn't more outcry when the policy was first announced...

[whistle]

3. Saying this is not a monetary failure, doesn't make it a success

...unless of course the plan all along was to sink the dollar, destroy the middle class and bring fascism to the U.S.

[gateley]

4. Whistle, not too terribly long ago I would have thought your post

a bit over the top.

Not anymore.

[whistle]

6. That does not make me feel any better, I would rather be seen as kook-ie

...but I have this way way about BushCo and the neo-con and religious right alliances these bastards have cultivated for quite some time now. I am convinced more then ever now that Bush, Cheney need to be stopped through impeachment asap before the who;le country collapses and falls completely into fascistic hands. You know that the supreme court is already there and fascist operatives are now implanted throughout the government bureaucracy. Most U.S. citizens just do not want to see the evidence and believe it is happening in this country.:grr:

[gateley]

7. I wish your ideas WERE kookie --

I think the ball is rolling, and even after we get Bushco out, it'll continue on its path for awhile.

I agree about getting them out NOW, but don't hold much hope that will happen. I AM holding out hope that they will be tried for treason (plus whatever else they're guilty of) after leaving office and will be imprisoned for the rest of their lives.

Do you think those in the Senate and Congress see the real state of things? On one hand we gotta think they do, on the other, theirs is a pretty insulated world...

[ixion]

5. yep, that's the plan

you can bet on that.

[nealmhughes]

8. When you stop making stuff and want too keep on buy stuff, but the stuff is made in China . . .

It doesn't take a chart, a computer program or a lecture from the AEI to figure what Buffet knows.

[Deja Q]

9. Bill Gates was predicting the dollar's fall over 3 years ago...

[Yavin4]

10. Warren Buffet Is A Grade A, FDA Approved ASSHOLE

I saw a brilliant documentary called, "The One Percent". It was directed by an heir to the Johnson & Johnson fortune, Jimmie Johnson.

Jimmie interviewed Buffet's granddaughter who is an artist and works as a maid to a wealthy family. She eschewed her family's wealth. When Buffet found out that she was in the documentary, he sent her a letter basically telling her that she was out of the family.

He's a sick, twisted, piece of shit of the highest order.

[Art_from_Ark]

11. So Buffet is abandoning the dollar

and investing heavily in what has traditionally been one of the world's most unstable currency countries?

[Xenotime]

12. buffett coudl send me some of his moeny.

[Warpy]

13. Brazil now has a socialist government

one of the rare benefits of having the US preoccupied with two wars halfway around the world is that it hasn't been overthrown by a CIA instigated military coup.

I'm not a bit surprised their finances are in good shape. I think that will happen in all the countries to the south where socialism takes hold.