The latest Bullion Buzz Newsletter has some interesting articles on issues such as debt, currency, etc. Of particular interest to me was an article by Alistair Blair on Warren Buffet and his thoughts on currency. Basically, he 'don't hold much stock in them'. Here is an excerpt: "At Berkshire Hathaway’s annual meeting last weekend, company Chairman Warren Buffett said that he's bearish about the ability of all currencies to hold their value over time because of massive deficits being run up by governments in the wake of the global financial crisis. He also warned that it is unclear how the Greek debt crisis will ultimately be resolved.

The financial crisis of 2008 was stemmed by massive monetary and fiscal intervention in developed economies that has shifted a private-sector debt mountain on to governments, increasing anxiety about sovereign risks. One concern is that governments will print money to pay debts, undermining the value of currencies and triggering inflation. “Events in the world over the last few years make me more bearish on all currencies in terms of holding their value over time,” Buffett said. “How the world weans itself off huge deficit financing is going to be difficult to watch.” Still, Buffett noted that as long as the US borrows in US dollars, there's no possibility of default since “you don't default when you can print your own currency.”

Sovereign debt concerns have hit Greece hardest so far because the country has one of the biggest budget deficits and debt loads of any country in the Eurozone. In addition, Greece has understated its deficit twice, shaking investor confidence. Bond yields have soared and the country's debt rating has been slashed to junk status, making it almost impossible for the country to refinance its debt mountain at realistic interest rates. Greece is promising drastic austerity measures in return for a bailout of as much as 120 billion euros over three years.

Earlier doubts about Germany's commitment to helping Greece triggered a surge in sovereign bond yields that cut all but the most creditworthy countries out of the market. Buffett said that Europe's monetary union has created an interesting situation, since Greece is a sovereign country in terms of its own budget but cannot print its own currency. “You may be seeing a test case play out there,” said Buffett. “A country not using its own currency and yet it is sovereign in terms of making its own promises to its citizens. I don't know how this movie ends,” he added. “I try not to go to movies like that.” Read more here: Bullion Buzz