Buffett: No hope for the dollar
"I think, over time, unless we have a major
change in trade policies, I don't see how the dollar avoids going down," claims
Warren Buffett, the world's second-richest person. Buffet also said he was
having a hard time finding things to buy in stock market.
This should surprise no one. Buffett didn't
become a multi-billionaire through being stupid. He knows what's going on. He
can see what should be obvious to anyone with half-a-brain and a bit of common
sense: the value of the dollar must go down. U.S. debts, especially foreign
debts, are too high, and domestic interest rates too low. Until we start paying
off our debts and allowing interest rates to rise to more natural levels, the
value of the dollar must continue to plummet. Yet here's the rub: if interest
rates go up, it will press harder on debtors, making it more and more difficult
for people to get out of the red. Americans have placed themselves in an
impossible position. How they will extricate themselves no one can
tell.
Posted: Fri - January 21, 2005 at 06:06 PM