Can Japan really dump the US Dollar? Warren Buffett clarifies the mechanics.
Warren Buffett debunks the common financial myth regarding Japan selling off US government bonds. This insight breaks down why the concept of dumping the dollar is structurally impossible, as any sale of US assets simply transfers those dollar-denominated assets to another party rather than eliminating them from the economy. Understanding the balance of trade is the only real lever for changing foreign investment levels, rather than simple asset liquidation.
#WarrenBuffett #Investing #Finance #Economy #USDEconomy #StockMarket #FinancialLiteracy
19 Comments
Yeah genius. They gonna sell it for half price to someone else making it half the value.
Or they buy gold, oil, land, food in the US. They buy agriculture already. So it’s arrogant to think it’s not possible.
Isn't that what's happening with regard to china, especially
They will stop buying and buy gold. This is a no win scenario for anyone
This aged like milk
Well everbody dumping american bonds the petro dollar is going to just saying if you speculated on that you win bid china owns 800 bilion dollar of ametican debt the intrest is so high china can finance there srmy with the intrest of the 800 bilion loan americans are just too stupid you cant vure stupidety
Warren is a smart person.. But the dollar is starting to be replaced by other currency. The Petrol Dollar is under attack.
The only way to dump dollars back to the USA is buy hard assets, products or services from the USA. My educated son and I debate this from time to time. He believes dollars leaving the USA is a good thing, I am not so sure.
Can the world not atleast stop buying them ? It is debt and the US is bankrupt so why would anyone but T bills ? What is he talking about 'government bonds" ? T Bills ?
Ai
The dollar is already dead
No, they can stop buying newly issued bonds.
You dump US$ bonds. You get US $. Then you sell the US$ for Euro’s. That isn t complicated. Is this AI generated? Because Warren is not this dumb.
Warren is wrong on this. They can sell treasuries and purchase hard assets like gold.
Trump's doing his best too burn the house 🎣
There are lots of other places to government bonds. The US is unstable and unpredictable and so people reduce US investments and diversify. It’s coming..
The US think they are better than Japan 😂😂😂😂
Japan just stops rolling over bonds or bills as they come due and ceases to re-invest the money in US paper by buying gold for instance on the SGE and taking delivery of the gold.
Damn ai I’m not sure if this is Buffett any more or it’s AI