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AS BUDGET DEFICIT GROWS, so do doubts on the dollar. ?Now, though, major investors like Berkshire H?

By Glenn Reynolds

AS BUDGET DEFICIT GROWS, so do doubts on the dollar. “Now, though, major investors like Berkshire Hathaway Inc. Chairman Warren Buffett and bond investment firm Pimco fear the government’s fiscal and monetary stimulus programs could end up fueling inflation in coming years and hammering the dollar. Higher inflation eats up the returns of bond investments that provide a fixed interest income, making them less attractive to investors. Less demand for U.S. bonds could mean a weaker dollar.”

Full post as published by Instapundit.com on August 26, 2009 (boomark / email).