Buffett Sounds Warning On U.S. Trade Deficit

The world's second richest man is again sounding alarm on our trade deficit. Here are a few snippets from Forbes today.

Don't count on a soft landing for the country's deficit-addicted economy, Buffett reiterated Tuesday. The U.S. trade deficit is a bigger threat to the domestic economy than either the federal budget deficit or consumer debt and could lead to "political turmoil".

Fixing the trade deficit--which soared to a record $665.9 billion in 2004, and is expected to top $700 billion this year--is becoming rather like turning around an ocean liner by dipping a teaspoon in the water.

The globe owns $3 trillion more of the U.S. than it owns of them. "In my view, it will create political turmoil at some point... Pretty soon, I think there will be a big adjustment," he said without elaborating.