Warren Buffett lost $2 billion betting the USD was going to continue dropping in 2005.  He got that wrong.  However, I am not saying the USD won’t have a bad fall either.  By the way, Buffett has lost something like $10 billion in the last two years.  His old buy and hold investing mantra is not the thing to do at this time.  Unless it’s half gold or something, and sitting on cash.  We have not seen the big crash yet, only a precursor, then this rally.

In fact, from my recollection, any of Buffett’s market comments to go in and buy in the last two years were all big disasters.  Of course, with the general stock rally that raised all boats, some of it is all right.  But that proves nothing.  Buffett is old hat.  I really hate saying that but it’s true.  Buffett spent his entire life in the great Western bull markets after WWII ended.  He is example number 1 of overconfidence in the US markets, having lived in an essentially 50 year long bull market.  Now that is in the process of ending.  The Pimco guys are the ones making the money (bonds) in the present chaot9ic markets.  Pimco’s comments are rather self-serving too, although I trust them more than most.
The Asians have export oriented economies, and have now again made it clear they do not intend to allow the USD to fall precipitously.  Even though the USD fell to as low as 70 roughly on the USDX in 2008 before it rallied in summer, it appears that the major economies intend to support the USD now, at least at this juncture.

Nevertheless, gold rallies and holds near $1050.