Investing & Financing: Warren Warning - USD to fall?

Buffet just made an announcement at the annual BH meeting that he believes the trade defecit and national debt is going to make the USD value drop sharply. He's going to focus his $45 billion in cash reserves on foreign investments to give his shareholders currency diversification. Do you agree with what he's saying? I mean, this guy's virtually a modern day financial Nostradamus, it's hard to just take what he says with a grain of salt. What are your thoughts?

[quote="jdoc"]He's been shorting the USD for at least the last year, so it makes sense that he believes this. I don't know how it's doing against other currencies, but it's lost over 20% the last couple of years against the Cdn $. Some economists believe our dollar will get back to par or better in the next few years.

Unless the twin deficits change, I don't see them being wrong. To me this isn't necessarily a good or bad thing, you just need to invest accordingly.[/quote]

I agree wholeheartedly. Although it is both a good and bad thing depending on who is involved. My dad has an exportation business and the US dollar drop doesn't help one bit.

Scratch the speculation....

http://www.todayonline.com/articles/117600.asp