Bill Gates, the world’s richest person with a net worth of $46.6 billion, is betting against the U.S. dollar.
“I’m short the dollar,” Gates, chairman of Microsoft Corp., told Charlie Rose in an interview late yesterday at the World Economic Forum in Davos, Switzerland. “The ol’ dollar, it’s gonna go down.”
“A capitalist is someone who sells rope on Monday for a revolution on Tuesday in which he gets hung on Wednesday.” If the dollar tanks, Gates, Microsoft, and the country will be hurt badly.
Gates’s concern that widening U.S. budget and trade deficits are undermining the dollar was echoed in Davos by policymakers including European Central Bank President Jean-Claude Trichet and German Chancellor Gerhard Schroeder.
The dollar fell 21 percent against a basket of six major currencies from the start of 2002 to the end of last year.
Thank you Dubya, for your lunatic wars fueled by lunatic spending which are destroying the dollar while lining the pockets of a tiny few.
Warren Buffet continues to short the dollar
Gates reflected the views of his friend Warren Buffett, the billionaire investor who has bet against the dollar since 2002. Buffett said last week that the U.S. trade gap will probably further weaken the currency.
“Unless we have a major change in trade policies, I don’t see how the dollar avoids going down,” Buffett said in an interview with CNBC Jan. 19.
A 60 year old Workers Comp lawyer friend emailed me about this story, adding
How do you suppose I deal with this in my retirement account, which allows me choices of mutual funds? I am at a convention of WC attorneys and Barbara Boxer (whose husband is a wc atty) spoke to over a thousand of us. She got an enourmous standing , hooting, cheering ovation which lasted so long she seemed genuinely embarrassed. She thinks the D’s will stand up on Social Security. Let’s hope, especially if my retirement dollars get wiped out.