Warren Buffett, the CEO of Berkshire Hathaway and one of the most well-known investors today, mentioned that the only way for America to become a world’s reserve currency is with the U.S. dollar. But he cautioned about printing too much money as this could weaken its strength in future.
Warren Buffett, who is the boss of a business called Berkshire Hathaway and also known as the “Oracle of Omaha” because he is from Omaha city, recently shared his opinion about how valuable the US Dollar is and what could happen to it in the future.
At the 2023 Berkshire Hathaway meeting, the famous investor was asked what he thought about countries like India and Brazil who are trying to reduce their use of dollars. He was also asked how this is tied with the U.S. Federal Reserve’s efforts to print more money and raise interest rates in order to keep inflation under control.
Warren Buffett suggested that the US dollar is in a strong position to hold its title as the world’s main currency for now. But he also worries about how much money can be printed by the Federal Reserve of US, because too much printing might put an end to this status.
Warren Buffett Warns Of The Risks of Printing Too Much Money
Warren Buffett said that Jerome Powell, the head of the U.S. Federal Reserve, really understood what was going on but did not have control over how America spends its money. The famous investor warned about the consequences of too much printing of money in the USA.
“We don’t know what will happen if we print too much money, especially if our currency is the one used around the world. We don’t want to find out when it’s too late, so it’s best not to take any risks.”
Warren Buffett said that when people don’t trust the currency, their behaviour changes from what happens when they put money into a bank account or pension plan. This can lead to other economic issues which might be hard for him to predict. Finally, he warned about printing too much money and concluded his answer by saying this.
The USA is an amazing place and we have a lot of advantages, but that doesn’t mean that we can just keep printing money without any consequences. Warren Buffett said something about the US dollar being a reserve currency, and the risks of printing too much money – what do you think? Can you share your opinion in the comment section below?