Title: Mr Buffett sees massive inflation
Tags: Warren Buffett inflation
Blog Entry: None other than Warren himself sees massive inflation in the future. I read an article on moneynews were the Oracle said specifically that due to the enormous nature of the debt we are accumulationg the only way out is through massive currency inflation. Here is a quote from him: “A country that continuously expands its debt as a percentage of GDP and raises much of the money abroad to finance that, at some point, it’s going to inflate its way out of the burden of that debt,” Buffett said. Experience proves that, he points out. “Every country that has denominated its debt in its own currency and has found itself with uncomfortable amounts of debt relative to the rest of the world, in the end they inflate,” Buffett explains. “That becomes a tax on everybody that has fixed dollar investments.” I have seen alot in my time including the debacle of the 70's and I think we are heading for something a little more shocking this time around. I wonder if Warren is wishing he didnt sell all of that silver he held a few years ago. If I remember correctly he would have about a triple bagger based on today's price.
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