buffett sells the us$

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    Business - Dow Jones Business News

    Buffett: Berkshire Has Major Intl Currency Investment
    Mon Oct 27, 9:39 AM ET


    NEW YORK (Dow Jones)--Berkshire Hathaway Inc. (BRKA, BRKB) Chairman Warren Buffett (news - web sites) says that since the spring of 2002, "Berkshire has made significant investments in - and today holds - several (foreign) currencies."

    Fortune magazine said in a press release Monday that in an article to be published in the Nov. 10 issue of the magazine, Buffett writes, "To hold other currencies is to believe that the dollar will decline. Both as an American and an investor, I actually hope these commitments prove to be a mistake."


    Buffett is quoted as writing that the U.S. trade deficit "has greatly worsened, to the point that our country's `net worth,' so to speak, is now being transferred abroad at an alarming rate."


    Buffett says foreign ownership of U.S. assets will grow at about $500 billion a year at the present trade-deficit level, which means that the deficit will be adding about one percentage point annually to foreigners' net ownership of U.S. national wealth.


    "A perpetuation of this transfer will lead to major trouble," the press release quotes Buffett as writing.


    The press release says Buffett proposes issuing "import certificates" to all U.S. exporters in an amount equal to the dollar value of their exports. Each exporter would sell the import certificates to other parties - exporters abroad or domestic importers - wanting to get goods into the U.S. To import $1 million of goods, for example, an importer would need import certificates that were the byproduct of $1 million of exports.


    -By Steven C. Higgins, Dow Jones Newswires; 1-201-938-4378;

 
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