Billionaire Warren Buffett Issues US Dollar Warning, Says Reckless ‘Fiscal Folly’ Is Now Standard Practice

Billionaire Warren Buffett just issued an alert on the state of the US economy.

In Berkshire Hathaway’s annual letter to shareholders, Buffett warns  the stability and purchasing power of the US dollar can be easily eroded.

“Paper money can see its value evaporate if fiscal folly prevails. In some countries, this reckless practice has become habitual, and, in our country’s short history, the U.S. has come close to the edge. Fixed-coupon bonds provide no protection against runaway currency.”

Buffett says capitalism itself is suffering from historic levels of abuse within the system, although its power to promote prosperity remains unmatched.

“One way or another, the sensible – better yet imaginative – deployment of savings by citizens is required to propel an ever-growing societal output of desired goods and services. This system is called capitalism.

It has its faults and abuses – in certain respects more egregious now than ever – but it also can work wonders unmatched by other economic systems…

The American process has not always been pretty – our country has forever had many scoundrels and promoters who seek to take advantage of those who mistakenly trust them with their savings. But even with such malfeasance – which remains in full force today – and also much deployment of capital that eventually floundered because of brutal competition or disruptive innovation, the savings of Americans has delivered a quantity and quality of output beyond the dreams of any colonist.”

The 94 year-old Berkshire Hathaway CEO says it won’t be long before he ends his historic 60-year tenure at the firm.

“At 94, it won’t be long before Greg Abel replaces me as CEO and will be writing the annual letters…

We are impartial in our choice of equity vehicles, investing in either variety based upon where we can best deploy your (and my family’s) savings. Often, nothing looks compelling; very infrequently we find ourselves knee-deep in opportunities. Greg has vividly shown his ability to act at such times as did Charlie.”