Buffett deepens dollar worries

What many people here,who defend the Buffster and/or the gold bug doom&gloomers either never knew,or just ignore,is that the markets have < ALWAYS been cyclical! There are ups,there are downs, and I've even seen the markets just shuffle along and do nothing at all;with a blip here and there.

The Euro can't hold,no matter WHO tries to prop it up,because of the conditions in many of the nations,especially France and Germany's. And then there is the nasty little secret...when dollars are less expensive,so are OUR goods. Ergo our exports get sold more and Americans buy less of the expensive imported stuff.

"I've debated whether GWB has any serious political views, as I fondly remember Ronald Reagan."

good one....

let's be honest....Dubya and the rest of the politicians have one political view.....to win......

ideals don't matter......

"When the dollar reserves tighten, and they will, you'll see it first in gold and oil."

can you explain this to the non-economic mind?

when will the feds tighten the dollar?

and will the price of oil and gold go down or up?

Yessir! Buffet owns 18% of PetroChina (PTR) and is pumping it for all he can, without doing so in a manner that will be obvious to regulators.

Dissing the dollar and debt levels by using sensational terminology like "sharecroppers' society" is nothing more than a pump and dump to squeeze more out of his winner in order to make up for his losers. If Buffet has his way, all those foreigners buying up US assets will change their spending habits and buy China and Oil, enabling him to unwind his huge position at higher levels.

I think that too much like Klintoon he is worried about his "legacy", after having experienced recent failures, and his methods are transparent. Once everyone knows what position to take, the markets always do the opposite.

High crude oil prices are being driven to some extent by the exchanges, as a lower dollar costs for stronger currencies make oil cheaper, thus less resistant to a higher price. From the seller's point of view, as the dollar surplus of crude dollars sales grows, there is an inclination to convert to higher value currencies for the buying power.

Since China and India are driving oil consumption, and both want stability versus the dollar, oil won't get much higher than it is now. China will NOT touch its exchange rate.

Gold's price is driven by dollar-based returns. Gold is an alternative, simply, for when dollar yields don't look good (as a result of too many dollars, for example). When you see gold and oil go down, it's likely that the dollar is up.

The problem, as a I mentioned before, for euro-based investment is that Old Europe has no growth, thus its currency has no growth. All the whining about U.S. "fundamentals" is silly, emotional, or self-serving, depending on which side of the currency bet you stand.

Hope that helps.

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