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To: ild who wrote (60403)5/6/2006 3:51:46 PM
From: Crimson Ghost  Respond to of 110194
 
Buffett Warns on Dollar, Inflation
Weaker dollar could lead to higher inflation: Buffett
By Alistair Barr
Last Update: 2:55 PM ET May 6, 2006

OMAHA, Neb. (MarketWatch) - Growing trade and current-account imbalances in the U.S. may cause a painful correction in the dollar, Berkshire Hathaway Inc. Chairman Warren Buffett said Saturday.

That, in turn, could lead to higher inflation, he added during a speech at the company's annual meeting.
At some point, the imbalances could trigger "some chaotic markets in which currency adjustments play a part," Buffett said. Berkshire has begun investing in overseas companies, partly to hedge against a possible drop in the U.S. dollar.