Even Saddam was holding US Dollars

when they found him in his hole. As George Gilder points out recently, Soros and Buffet would have had him convert to Euro.

Bottom line is that the panic over foreigners holding US financial assets is overblown and misunderstood. There are many reasons to like US $ and, for the record, Buffet is going to loose money on his short USD position (unless he is really smart and covered it recently).

Some other useful numbers from David Malpas, chief economist at Bear Stearns. During 2004 US households added 590 Billion of financial assets. Against that, the total stock of credit card debt is 800 Billion. On a per capita basis Americans hold $89,900 each of financial assets which is more than the Japanese, the biggest savers in the world, with $76,900 per capita.

Comments

Anonymous said…
I will e-mail you.. G

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