Bearish pronouncements on the greenback from Buffett and Pimco add to the market's unease. Here's what investors need to know
Reports of the demise of the U.S. dollar may be premature. But when some of the world's most powerful investors are warning of the currency's decline, investors take notice.
Berkshire Hathaway (BRKA) Chief Executive Warren Buffett warned in a New York Times op-ed on Aug. 19 that the U.S. debt load threatened to turn the U.S. into a "banana republic economy."
A flood of greenbacks from the Federal Reserve and the Obama and Bush Administrations may be necessary now to prop up the ailing economy, Buffett said. But the government must control its debt in the future—or risk the consequences.
"The dollar's destiny lies with Congress," Buffett wrote.
GO HERE to read more.
6 comments:
"The dollar's destiny lies with Congress," Buffett wrote.
We're screwed.
Buffett is lying. The dollar's value is directly manipulated and controlled by the Federal Reserve Bank. They have secret power over Monetary Policy. They got the power illegally in 1913 and refuse to give it back.
The U.S. Treasury issues Bonds, and the Fed prints the money. At times, the Fed prints the money to buy the bonds. The IRS was established to garuntee payment of interest on the Fed's notes, through direct taxation of the people's income.
Furthermore, with Fractional Reserve Banking, the banks are allowed to keep only a fraction of reserves on hand for outstanding loans. In other words, they don't have the money they lend to us. What reseves they do have are now kept with the Fed and bear interest! That's right, they collect interest on the reserves kept at the Fed.
So we loaned them money we didn't have. Then we pay interest on the loan with money which is borrowed. The currency itself (fiat) has no tangible value.
9:53
Excellent remark. She is right. We should all be buying gold and sliver, food and water, guns and bullets. Get ready for what is coming. The police won't be able to defend us once the crash ocurrs. Remember New Orleans? If you couldn't defend yourslef, you were in deep trouble.
To 9:53,
If the Fed has "secret" powers, how is it that you know about them?
9:53 is right on target. The Fed Reserve Bank is a privatly owned bank. Goolge and read for your self. We got screwed back in 1914 by Woodrow Wilson. Once you figure out we are ruled by a bunch of figureheads Republican and Democrat doesn't mean much. The Fed calls the shots.
The secrecy of the Federal Reserve's monetary policy has been discussed at length in the past several months in congress. There is a congressional bill to audit the Fed and remove its monetary powers. Ben Bernanke publicly stated that the monetary policy decision making should remain a secret.
Post a Comment