Buffett's Dollar Warning Resurrected as US Debt Tops $40 Trillion

Warren Buffett's warning about the US dollar has resurfaced as America's national debt exceeds $40 trillion. Speaking to Berkshire Hathaway shareholders in May 2025, Buffett expressed concern about the long-term consequences of persistent US government deficits and currency erosion.

Buffett described the country's fiscal deficit as unsustainable over a very long period and warned that such a situation can eventually become difficult to control. He noted that governments have the ability to issue paper money but also creates a risk, stating 'the natural course of government is to make the currency worth less over time.'

The US federal government had accumulated a deficit of $1.97 trillion through the first 11 months of fiscal 2026, while national debt surpassed $40 trillion.

Buffett's warning was not about an immediate dollar collapse but rather the long-term effects of continued borrowing and money creation on the value of money itself. He emphasized that currency depreciation does not necessarily arrive as one dramatic event but can appear more quietly over time.