Another reason to bank abroad.

by | Nov 12, 2003 | Archives

If we take all of Wall Street’s growth of the past thirty years, deduct inflation and the fall of the U.S. dollar, we do not have a lot left. Back in the late 1960s Wall Street crashed and moved into a fourteen year sideways movement. We had a President from Texas who was running a guns and butter policy that created such huge federal deficits and debt that the U.S. dollar crashed from 400 yen per dollar to 100, from four German marks and or Swiss francs to barely one per dollar.

This is happening again, so much so that even Warren Buffet is abandoning the greenback as the article below shows:

“Article dated – Monday October 27, 8:14 am ET )

NEW YORK, Oct 27 ( Reuters ) – Warren Buffett ( News ) , the world's second richest man, said he was concerned with the size of the U.S. trade deficit and was investing in foreign currency in response to the problem.

Buffett, in an article dated Sunday appearing on the online edition of Fortune magazine, wrote that Berkshire Hathaway Inc. ( NYSE:BRKa – News ) , the Omaha,Nebraska-based holding company which he runs, has been investing in foreign currency since last spring.

“Through the spring of 2002, I had lived nearly 72 years without purchasing a foreign currency,” Buffett wrote. “Since then Berkshire has made significant investments in — and today holds — several currencies.”

Buffett would not identify the currencies.

On Saturday Buffet told weekly financial newspaper Barron's that he sees very few attractive investments at the moment for the $24 billion pile of cash he is sitting on as chief executive of Berkshire.

(link to above story)

So if you are making good returns in the U.S. dollar, look again, Compare your profits in euro or Japanese yen and see if you still like what you have earned. Look tomorrow for some ways to protect against further erosion in the u.S. currency.

Until then, good investing in whatever currency you choose.