Warren Buffet's in Toronto today and remarked that the Dollar will be worthless in ten years if the US debt keeps ballooning.  This was brought up on CNBC and then scoffed at by a couple of the "experts" who said "yes, well he's assuming the debt will keep increasing" with a tone that implied this was a ridiculous assumption!

Yes, most ridiculous considering that Bush doubled the debt from about 5 trillion to pushing 10 trillion in his term in office and that was during a relatively good time. I imagine they'll be able to chew that debt down substantially over the next few years considering the economic outlook is... uh... Already his 400 billion deficit for this year is expected to rise dramatically since it's based on last years tax revenue projections, which not the reality of the declining tax revenues of 2008.

To make matters worse, although Bush has been spending money, he's not been spending it on infrastructure and as such his successor will have no choice but to increase spending to make up for the years of neglect. Plus they'll have some hefty interest payments to make on that extra 5 Trill... 

Anyways, no need to worry about the price of Gold, FB's short or medium term technicals or not. Even if Gold does correct, the dollar is ultimately going lower. It has to. The only thing the dollar has in it's favor now is that some suggest that it's low enough to stimulate investment. However, inflation has been steadily climbing in the US. If dollars were worth 50 cents, it might mean labor costs go down but it also means costs of robots, fuel, transportation, raw materials and imported goods or services goes way up. This can't be good for the economy and it can't be good for the dollar.

Buffet also said "The cause of the declining U.S. dollar is the current account deficit, the trade deficit being the biggest factor in that,".