Exactly. Buffett's dollar bet is a long-term one. Something that the knee-jerk Dumbya cultists cannot understand. Remember this is the same crowd that did the "Mission Accomplished" dance in mid 2003. And three years later, we (both ordinary Americans and ordinary Iraqis) are getting S.C.R.E.W.E.D in Iraq. You can't expect much perspicacity from the "Mission Accomplished" crowd, can you?!
-------------------------------------------------------
June 20, 2005 Buffett still betting against the dollar
Warren Buffett is holding fast with his bets against the dollar. The world's second-richest man began buying foreign currencies in 2002. So far this year, the dollar's 10 percent rise in the foreign currency markets has generated a $300 million loss for Buffett's Berkshire Hathaway Inc.
Buffett says his belief that the dollar will weaken is unchanged. Here's how he put it when asked by Bloomberg News:
``There's no change in the underlying factors affecting currencies, in my view,'' Buffett said at press conference in Boise, Idaho, while attending a meeting of state utility commissioners. ``The policies that we're following are likely to lead to a weaker dollar over a long period of years. It's not a forecast for next week, or next month or even next year.''
For the first three months of the year, the U.S. current account deficit grew to a record $195.1 billion. The rise in the deficit increases the need for the U.S. to borrow more money abroad. Foreign investors pump about $2 billion a day into the U.S. economy by buying Treasury bonds and other securities.
If the economy continues to expand, the current account deficit may increase as consumers buy more imports.
As for Buffett, don't feel too sorry for him. The strategy has been profitable over the long-term. Berkshire's posted gains of almost $2.7 billion since Buffett first took his currency positions, Bloomberg says. |
