A 13-year-old girl asked Warren Buffett’s opinion on de-dollarization and the public debt of the United States during a question-and-answer session at the annual meeting of the Berkshire Hathaway investment firm led by the traditionally admired financial investor and fifth-richest person in the world.
At the meeting held over the weekend in Nebraska, it was ask a question by the running teenager The national debt of the United StatesWhich is estimated at 31 thousand million dollars.
The figure is about 125% of GDP, but in recent years the Federal Reserve has stated that it intends to monetize the debt by printing billions of dollars. However, they insist that they are fighting inflation, while other major world economies, such as China and Saudi Arabia are moving away from the dollar just in case.
My question is, follow the teen, who identified herself as Daphne: What can we as American citizens do to try to protect ourselves from what looks like the onset of de-dollarization?
Buffett responded by pointing out that the US dollar It does not risk losing its status as the world’s reserve currency. However, he cautioned against aggressive spending by the US government, which he believes could have disastrous consequences.
Buffett warned about public spending
“We have a reserve currency, and I see no option for any other alternative to replace it,” said the famous investor and CEO of Berkshire Hathaway during his company’s annual meeting.
Then he added, “We have to be very careful, because it is very difficult to see how you recover just by letting the genie out of the bottle and People lose confidence in the currency“.
“It’s crazy to keep printing money,” Buffett said. However, he later commented that he finds it interesting that the amount of money in circulation jumped from $800 billion to $2.2 billion, with a large portion of that amount being in the $100 bills.
“I’d really like to know where all of that is,” he said. “Anyone thinks so Cash is garbage, you should look at the Federal Reserve’s balance sheetadded Berkshire Hathaway CEO.
His right-hand man, Charlie Munger, said the United States should not risk a serious outcome by spending too much. “If you are going to keep printing money and spending, I think that will eventually lead to serious problems,” he said.
Spend Less Than You Earn, Advice From A Billionaire
On Twitter, some community members pointed out that Buffett left Daphne’s question on the air by not explaining how citizens could protect themselves from what looked like the beginning of de-dollarization?
Bitcoiners like American businessman Michael Saylor Believes that The correct answer to this question is none other than Bitcoin. It should be noted though, that Buffett is a bitcoin skeptic, as previously reported by CriptoNoticias.
Anyway, when another teen asked him what the top mistakes people should avoid when investing, Buffett advised that “you have to spend a little less than you earn” or you’ll never get out of debt.
On this point, some economists who see a dollar drop coming think think Bitcoin is the best option to protect yourself, Because it has unique strengths as a haven of similar value to gold, as shown above.
Also, financial advisor Robert Kiyosaki believes that bitcoin is the cure to counter an ailing economy, such as the United States.
He recommends BTC because the cryptocurrency is among the rare escaping assets that governments issue at will through central banks, CriptoNoticias reported at the time.
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