Posted on 01/21/2005 5:17:57 PM PST by familyop
NEW YORK - Doers and doings in business, entertainment and technology:
Heed the Sage of Omaha. Warren Buffett, whose investment acumen seems unerring, had a caveat for America: Barring "a major change" in policies, the trade deficit will further undermine the U.S. dollar. The billionaire spoke in a Wednesday interview with CNBC, the cable TV news channel owned by General Electric (nyse: GE - news - people ). Without shifting current trade policy, "I don't see how the dollar avoids going down," he mused, warning of inflation risks posed by an anemic Yankee currency. The prairie-born genius also confessed he's having a "hard time" identifying stocks to buy, and isn't purchasing commodities. His cash swelled to $43 billion in the third quarter, by one account, because he couldn't find many investment opportunities. Buffett, 74, is chairman of Berkshire Hathaway (nyse: BRKa - news - people ), the immensely successful investment vehicle that acquired a new--and immensely successful--board member in December: Microsoft (nasdaq: MSFT - news - people ) Chairman Bill Gates. The latter also enjoys a personal friendship with Buffett, and takes part in his bridge games. (see: "Gates: Buffett's Pal Bill Elected To Berkshire's Board")
The trade gap/deficit may be the one statistic in all the world that is more meaningless than the Game Winning RBI.
Germany is currently running a trade surplus. Checked out their economy lately, Warren?
He shouldn't be looking at the trade deficit. What he should be looking at is the money supply, and national output.
Is anyone else worried about the falling stock market or am I alone in this?
...maybe true, and thanks, but have a look at this one from a little over an hour ago.
Canada Dollar Ends Losing Streak, Bonds Mixed [U.S. Dollar falling?]
http://www.freerepublic.com/focus/f-news/1325838/posts
And I have no investment interest in the matter, BTW. ...only historical
interest.
the u.s. trade gap is over stated.
u.s. owned companies abroad return products to the states and these are included in the gap.
To Warren Buffett
What are you up to, Warren? I bet I can guess. You are trying to manipulate the market. You'd like to see the dollar undermined, wouldn't you, because it would look bad for G.W. You dirtball!
.
"I don't see how the dollar avoids going down," he mused...I guess Buffett isn't on the board of J&J...
US Firms Begin Repatriating DollarsUh, ya think they'd rather wait for a weaker dollar before converting those billyuns to greenbacks, or do ya think they think that Warren Baby has it backwards?
The US dollar continues to firm against the Euro, trading as low as 1.2921 during the European trading session. The markets remained focused on President Bush's Inauguration and have found respite in the lack of any geopolitical risks. News that Johnson and Johnson will be repatriating $11 billion of its past earnings from foreign activities back into the US in an attempt to take advantage of the reduced taxes offered under Bush's American Jobs Creation Act of 2004 has spurred continued optimism for the dollar. Pfizer may also be following suit, as they are considering repatriating $38 billion in past earnings. These firms will enjoy a reduced tax rate of 5.25% on these earnings, compared to the normal 35%. It is estimated that US corporations are holding $500billion of foreign earnings abroad, of which 30% could be repatriated this year.
The article says that this move is motivated by the US tax code. Sure, but the timing of it is not.
Either way, lowering taxes will increase the value of the dollar against currencies of other high tax economies. Bon appetit, Warren honey!
| EUR to USD (YHO:EURUSD=X) Delayed quote data by Reuters |
| Last Trade: | 1.2999 |
| Trade Time: | 6:12PM ET |
| Bid: | 1.2999 |
| Ask: | 1.2999 |
Yes, Warren is a radical social lefty. So is Bill Gates.
What are you up to, Warren? I bet I can guess. You are trying to manipulate the market. You'd like to see the dollar undermined, wouldn't you, because it would look bad for G.W. You dirtball!Dirtball, perhaps. Bush hater, probably. Manipulator, absolutely.
Warren baby shorted the dollar too late, and he's getting scared. I wonder where Soros is positioned now. Anyone know? My guess is that he's long on the dollar. He took his positions a while ago. If he's still short, I'll be amazed. I'd be glad for his suffering, but amazed, nonetheless.
You are alone...
Duh. That is old news. The alternative press has been saying that since before NAFTA screwed the American worker. Tell us something we dont know.
You sure Soros is still short? I don't know. Just asking.
I haven't heard otherwise, and when one of these billionaires makes a change it usually moves the market.
What does Mr. Buffet recommend to stop the trade deficit?
The trade deficit is due to Americans buying foreign goods and not as many foreigners buying our goods. We don't make many of those goods in this country because of high labor costs - largely due to labor unions.
What's the solution? Trade barriers? Speak up Warren.
I can't speak for Warren, for sure, but two solutions to the trade deficit are a lower fed rate (more domestic competition) and a lower USD. Some people who are currently doing well in competition against their own countrymen here don't like it, but it appears that it's going to happen, anyway, IMO.
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