Thursday, August 20, 2009

Buffett on "The Greenback Effect"

NYTimes Warren Buffett on excessive dollar creation and the long term results.

IN nature, every action has consequences, a phenomenon called the butterfly effect. These consequences, moreover, are not necessarily proportional. For example, doubling the carbon dioxide we belch into the atmosphere may far more than double the subsequent problems for society. Realizing this, the world properly worries about greenhouse emissions.

The butterfly effect reaches into the financial world as well. Here, the United States is spewing a potentially damaging substance into our economy — greenback emissions.
Click on the NYTimes link above to read the whole thing.

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