Trade free or die

Trade free or die: Musings of Warren Buffet

- courtesy of Market Watch
By Last update: 7:32 p.m. EDT March 10, 2008
...Finally, trade is one of my bigger hot buttons these days. Recent political stumps have called for the rework of Nafta or its elimination altogether. Careful -- it's a two way street. By eliminating Nafta we might protect a lot of American jobs, but we'd lose just as many if not more by hampering exports. Such a policy tried during the Great Depression only made things worse. Buffett agrees. "Our country's weakening currency is not the fault of OPEC, China, etc. Other developed countries rely on imported oil and compete against Chinese imports just as we do. In developing a sensible trade policy, the U.S. should not single out countries to punish or industries to protect. Nor should we take actions likely to evoke retaliatory behavior that will reduce America's exports, true trade that benefits both our country and the rest of the world."

Prosperity still rules

There's more, but these are the highlights. Buffett is clearly worried about some aspects of the economy, and chagrined at the way at least some corporate American managers, politicians and financial professionals have vacated its proper stewardship.

But he does offer one kernel of optimism in talking about where Berkshire will concentrate future investments: "Despite our country's many imperfections and unrelenting problems of one sort or another, America's rule of law, market-responsive economic system and belief in meritocracy are almost certain to produce everlasting prosperity for its citizens."..."