“Force-feeding a couple of billion a day to the rest of the world is inconsistent with a stable dollar.”
That was Warren Buffet two years ago, as reported by the Globe and Mail in As dollar tumbles, America is up for grabs. And he was right:
• The US buck has fallen 6% against the euro so far this year; 14% against the Canadian dollar; 26% against the Brazilian real.
• Americans are trading their wealth in return for someone else’s goods. In the first nine months of 2009, the US spent $275 billion more on imported products than they received from exports.
• The US owes other countries $2 trillion, mainly to China.
“The truth is we’re selling America to the rest of the world. It’s just a question of [in] what form we sell it to them.” Buffet again.