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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: RonMerks who wrote (9724)	5/19/2008 1:56:21 PM
From: ecrire	Read Replies (1) \| Respond to of 50412

In an interview on CNBC last night Warren Buffet continues his long term bearish stance on the US Dollar, given current and prospective policies. Of course he is not known for exquisite timing.

To: RonMerks who wrote (9724)	5/19/2008 2:14:31 PM
From: Cactus Jack	Respond to of 50412

Ron, I'm not a trader (at least not a good one), hence my interest in the longer-term direction. I'm not sure why you feel it necessary to thump your chest; whatever. Rogers remains bearish in the big picture on the dollar, and hopes for a rally to allow him to sell what he has left. From the Bloomberg article that you linked: Rogers said in last month's interview that he was hoping the dollar rally would last a year, which would allow him to sell all of his U.S. currency. Today, he said he holds the currencies of commodity producing nations of Australia, New Zealand and Canada, which he expects ``to do well.' He added that the dollar is losing its status as the world's reserve currency and is increasingly being replaced by the euro, the yen and sterling. On a 20-year outlook, the Chinese yuan is a likely replacement. ``But the only thing I can see on the horizon which can replace the dollar is the renminbi, which is an absurd statement as it is a blocked currency, but this is a longer term horizon, maybe in 20 years or so,' he said. ``It cannot be the euro or the yen or the Swiss Franc.' Rogers expects U.S. Treasuries to decline due to inflationary pressures. ``I have sold long-term U.S. government bonds,' he said. ``If the same thing happens as it always happens in inflationary times, then rates are going much, much higher, especially long- term rates.' Rogers said central banks may be effective in manipulating short-term interest rates ``but they can't do much with long term rates.' And from the seekingalpha article: If you recall, Warren Buffett said over the weekend that not even aliens would like to keep US dollars. Both Buffett and Rogers are on the same page in some way: They don’t really want to hold onto dollars in the long-term. In any case, many people including Rogers, Buffett and George Soros (who co-founded Quantum fund with Rogers in the 1970s) are saying the dollar is losing its status as the world’s reserve currency and a prime candidate replacement is the Euro. Rogers even said today the Chinese yuan could become one in 20 years’ time. Yet, it’s quite unnerving to think that China could hold so much power, considering China’s questionable political and human rights record at this point in time. Thanks for the links. jpg