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The bears are talking bull on US decline
November 3, 2007
Column on Financial Times comment page Jim Rogers does not do things by halves. The outspoken investor who originally founded the Quantum Fund with George Soros is so bearish about the dollar, the US housing market and the US economy that he is leaving. He has sold his Manhattan townhouse and is moving to China with his Mandarin-speaking daughter. Not many have gone as short on the US as Mr Rogers but plenty of others lack confidence. Warren Buffett, the investor, has been a bear on the dollar for a long time, believing the trade and budget deficits show the US is living beyond its means. His company Berkshire Hathaway has been investing in companies overseas, including in South Korea, which Mr Buffett visited last week. Continue reading this column here. Post comments below.
If he ever again becomes a voice in the wilderness, it may not be soon enough.
His premise on the Buck is/was/is validated monetarily, with a credible available alternative currency. As me memory serves, his dollar declining forecasts and the relative values (deficits of sorts) associated with such prognostications, were made at a time when the Masstricht Treaty (The Guidelines by which the Euro became as Sound As A once Pound.) was still relegated to use in the lavatory. Unless he had/has Euro vision. Though I’m not sure Berkshires portfolio reflects, or reflected such a sentiment.
Point is, The Maastricht guidelines will provide the future basis for the Euro to be such a currency, as to cause his predictions to come to pass.
Point is, if there were no Maastricht, there would be no sound Euro. Then there would likely be not such a declining dollar; for as to decline against what?
Point is, I’m not sure he is/was right, or gonna be completely right for the right reasons.
Posted by: Doug | November 3rd, 2007 at 8:15 pm | Report this comment