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Warren Buffett issued a stark warning at Berkshire Hathaway's 60th annual shareholder meeting on May 3, 2025, stating that the U.S. dollar could be "really going to hell" due to unsustainable fiscal deficits and irresponsible government policies. He explicitly declared that Berkshire Hathaway "would not really invest in a currency that is going to hell," signaling a potential shift toward holding foreign currencies if U.S. conditions deteriorate. Key Reasons for the WarningBuffett cited an unsustainable fiscal deficit currently operating at about a 7% gap, compared to a sustainable 3%, as a primary driver for his concern. He warned that the country's "alarming" fiscal behavior and the use of trade policies as political weapons could drag the currency into uncontrollable decline. Although he remains bullish on American business, he cautioned that arrogance in a nuclear-armed world is a dangerous currency and that trade should not be used as a weapon. Strategic ImplicationsIn response to these risks, Buffett hinted that Berkshire Hathaway may diversify into foreign currencies, particularly if making large investments in regions like Europe or if specific events occur in the United States. The company has already increased its exposure to the Japanese yen as a strategic hedge, and Buffett noted that while they have tried investing in foreign currencies before, the likelihood of doing so again is slim unless significant changes in the U.S. prompt a shift. This commentary coincided with a de-dollarization trend, where the U.S. dollar index had already dropped more than 8% earlier in the year, hitting an intraday low of 99.397 on May 3. https://www.newsweek.com/warren-buffett-issues-us-currency-warning-11768345