why warren buffet is buying foreign currency now

Fortune magazine had an article by Warren Buffet about why he is buying foreign currencies for the first time in hist life.

In a nutshell:

… my reason for finally putting my money where my mouth has been so long is that our trade deficit has greatly worsened, to the point that our country’s “net worth,” so to speak, is now being transferred abroad at an alarming rate.

The article contains an extended analogy about two islands to illustrate the point. It also contains a proposal for how to deal with the trade imbalance.

I don’t understand the way trade is measured well enough to agree or disagree with what he’s saying. Regardless, always interesting to listen to what America’s most successful investor is thinking about.