China News Network, May 5 (Zhongxin Finance Gong Hongyu) "This kind of behavior is stupid, stupid, stupid! ”

On May 5, local time, the annual global investor feast, Berkshire Hathaway's shareholder meeting, was held in Omaha, Nebraska, USA.

In the face of tens of thousands of shareholders and investors, Berkshire Hathaway's 92-year-old chairman and CEO Warren Buffett and his 99-year-old partner Charlie Munger are still radiant and sharp-minded. When talking about Sino-US relations, Mungelian used three "stupid" evaluations of all the actions that create conflicts between the two countries.

Infographic: Warren Buffett. Image source: CFP Vision China

stupid、stupid、stupid!

"What we (the United States) should do is to have a good relationship with China, and we need to do a lot of free trade with China, which is our common interest." This can give us more security and creativity. Everything that creates conflict between two States is foolish, stupid, foolish. At the shareholders' meeting, Mungelian said that the three "stupid" were impressive.

As two major countries, the trend of Sino-US relations has affected people's hearts and has also become a topic of concern for some investors. Munger mentioned, "China is our (the United States) big supplier of goods, think about what Apple has achieved by establishing partnerships with China, which is good for Apple and good for China." This is our business with China. ”

Buffett then said that both China and the United States are competitive and can share the vision of prosperity, China will be a better country, and so can the United States, and the two countries need to get along amicably, which is almost necessary considering the next 200 years.

The dollar may not be a reserve currency in the future

Recently, as many countries announced that trade will be settled in local currencies, an unprecedented wave of "de-dollarization" is being set off around the world.

Buffett said that the dollar is indeed a reserve currency now, but it may not be so in the future. The dollar can now do us a lot of good as a reserve currency, but when we don't do it well, it also brings us very big risks.

Yang Delong, chief economist of Qianhai Open Source Fund, told Zhongxin Finance that this statement responds to the "de-dollarization" measures taken by many countries since the beginning of this year. After the Ukraine crisis, the United States used the hegemony of the dollar to impose sanctions on Russia, which is also a warning to other countries that they cannot use the dollar as the only reserve currency and a means of payment for trade, otherwise they may be subject to others.

In addition, in order to stimulate the economy, the Fed has previously printed a lot of money. Buffett said at the shareholder meeting that inflation is the most important issue to be solved at the moment. It's crazy to keep printing money, and you can't keep doing it. When the epidemic happens, it's like a war, no one knows how much money to print before it goes out of control. Munger agrees. He said that if you keep printing money to solve short-term problems, there will be negative consequences.

"Buffett believes that crazy money printing is unsustainable and will eventually have bad consequences, leading to a decline in the credit of the dollar and a decline in the credit of the Federal Reserve." Yang Delong said.

Berkshire Hathaway shareholder meeting. Photo courtesy of Yang Delong, chief economist of Qianhai Open Source Fund

The Silicon Valley banking crisis was tragic

In order to curb inflation, the Fed has raised interest rates by 500 basis points in this cycle of interest rate hikes, which is rare in history. This has had a big impact on the U.S. economy, businesses and even banks. In the last two months alone, three regional U.S. banks, Silicon Valley Bank, Signature Bank and First Republic Bank, have closed down. At the shareholders' meeting, many investors also asked questions about the turmoil in the US banking industry.

Buffett said in the Q&A that the crisis of deposit banks in Silicon Valley is very tragic. If people are worried about the safety of bank deposits, the economy cannot function. Even though the Federal Deposit Insurance Corporation pays 100% insurance for all deposits, people are worried in all sorts of crazy ways. This should not happen. Politicians, institutions and the media have done a very bad job of delivering information.

Munger mentioned, "Now more and more banks are doing like investment banks, speculating and gambling. So I'm very uncomfortable with the current situation, which is toxic in this environment. (End)