Warren Buffett Shorting US Dollar

[Theophylact]

Hmmm.

[Knothead]

Wow, what a great American.

Made his fortune off the backs of working Americans, and now he turns against them because he might lose some small % of his $billions$...

Why people idolize sociopathic greed-heads like this guy is beyond me.

[Bill in SD, CA]

Someone to emulate.




Bill

[ShawnD1]

So now we're supposed to hate all currency traders?
Oh let me guess, this is the typical story of the big evil rich man destroying America because he's a businessman.

You people need to grow up. Betting against your country based on statistics is does not make you a traitor, it makes you an intelligent person. Only a fool will invest in something he believes will decrease in value.

[MTAtech]

Originally posted by Knothead
Wow, what a great American.

Made his fortune off the backs of working Americans, and now he turns against them because he might lose some small % of his $billions$...

Knot, you obviously don't understand speculative trading. Markets go up and down without regard to how you or Buffett desires. Regardless of whether Buffett shorts or not, the dollar will either go down, stay the same or go up. In other words, should the dollar fall it will do so whether Buffett invests or not. Theo's post just indicates that one of the most successful investors in history believes the dollar will fall.

With record deficits and debt I don't see how Mr. Buffett can miss.

[ShawnD1]

Yeah that Buffett is a smart one. Is he the one who created index funds?

[Knothead]

Originally posted by MTAtech
Knot, you obviously don't understand speculative trading. Markets go up and down without regard to how you or Buffett desires. Regardless of whether Buffett shorts or not, the dollar will either go down, stay the same or go up. In other words, should the dollar fall it will do so whether Buffett invests or not. Theo's post just indicates that one of the most successful investors in history believes the dollar will fall.

Perhaps you are correct, MTA. Maybe I don't understand spec trading, but I will tell you what I do understand, and that is that, the value of anything in the current (read: scaredy-cat) market is influenced by those who influence it...and further, I'll go on to say that were I Mr. Buffett, I would use my influence to bolster confidence in the dollar, and refrain from allowing the crippling of it, and the buying power of the American worker, (who, btw, are getting pretty financially crippled by the current economy)!!

What the hey, it would only cost me a few million bucks. When one has billions, it seems a small price to pay to back up those workers.

If you read the article, Mr. Buffett also says he has no intention of investing those billions in the stock market.

POOOF! Goes thousands of jobs! Just like that, man.

Originally posted by MTAtech
With record deficits and debt I don't see how Mr. Buffett can miss.

Ah. Perhaps that's what it is...a political statement in the guise of a financial one. A punch at the current administration, maybe? Heh!

[Chuckiechan]

One of the policies our much maligned president has "suggested" to the central bank is to allow the dollar to fall, and not prop it up with purchases into the treasury.

The purpose of this is to punish the Chinese Yuan which is pegged to the dollar. As the dollar falls, the Yuan falls and Chinese goods start going up in price all over the world, except of course the USA.

Hopefully the Chinese will cry "uncle" and unpeg from the dollar and float their currency like everyone else. This will raise the price of Chinese imports into the USA, and everyone can get back to blaming Bush for inflation.

Buffet is doing what millionairs do. Plus he is speculating that Kerry will win, and the dollar will fall rapidly due to expected economic uncertainty and chaos 'ala Jimmy (Peanut) Carter.

[Knothead]

Originally posted by Chuckiechan
Buffet is doing what millionairs do. Plus he is speculating that Kerry will win, and the dollar will fall rapidly due to expected economic uncertainty and chaos 'ala Jimmy (Peanut) Carter.

Chuck, it is beginning to alarm me how much I am starting to agree with you.

Perhaps you should be alarmed as well....

[MTAtech]

Originally posted by Chuckiechan
One of the policies our much maligned president has "suggested" to the central bank is to allow the dollar to fall, and not prop it up with purchases into the treasury.

The purpose of this is to punish the Chinese Yuan which is pegged to the dollar. As the dollar falls, the Yuan falls and Chinese goods start going up in price all over the world, except of course the USA.

That is a dangerous and potentially unwise policy, as the Asians, and Chinese in particular, are financing our deficit. (Yes, the federal budget and the value of the dollar now depend on huge purchases of Treasury bills by the governments of Japan and China.) A lower dollar means higher import costs, cheap foreign goods become expensive foreign goods (e.g oil), rising inflation, chaotic financial markets, and a lower standard of living.