mlyn

I.O.U.S.A.

Like IThinkBig, I also believe a risk event will push us over the precipice. I think Buffet did not answer well the question about the U.S. dollar. He said something about foreigners can sell us back our dollars or sell to some other country as though it has no impact on value. I don't think people understand what it means to have the international reserve currency; it has its benefits but we've also abused our responsibility. A major risk event is when/if the U.S. dollar is dumped for another currency as the reserve currency like the euro. As it is, Russia wants to dump Fannie and Freddie shares; a Chinese economist says that the loss of Fannie and Freddie would change the international financial system . . . that means the end of the U.S. dollar as the reserve currency.