At the Berkshire Hathaway annual shareholder meeting, Buffett reiterated his confidence in the U.S. economy, but also issued a stern warning about the risks of currency devaluation stemming from fiscal policy. (Background: Coca-Cola's stock price hits a new high against the trend! Can learning from Buffett protect your investments from economic downturns?) (Additional context: Buffett holds a lot of U.S. debt! Berkshire's holdings exceed $300 billion, 'far surpassing the Federal Reserve'; what is the oracle of Omaha calculating?) At the globally watched Berkshire Hathaway annual shareholder meeting, Warren Buffett once again shared his profound insights on the U.S. economy and investment strategies. Buffett firmly reaffirmed his confidence in the long-term advantages of the United States and the notion of 'American exceptionalism,' but he also expressed rare concerns about current U.S. fiscal policies, particularly warning of the potential risks of currency devaluation. Belief in American exceptionalism: History proves its resilience When asked whether American exceptionalism (the view that the U.S. economy is uniquely resilient and continues to thrive in adversity) will persist amid transformational global changes, Buffett responded positively: "I will not be discouraged just because the current situation looks bleak; after all, the U.S. has solved every problem it has faced in history." He emphasized that the current changes are a natural continuation of historical processes, not a signal of America's decline. Reflecting on how the U.S. has evolved from an agriculture-based nation to what it is today, it has undergone countless significant economic and social transformations, showcasing its strong economic resilience. Fiscal policy concerns: Beware of currency devaluation risks However, despite maintaining optimism about America's long-term prospects, Buffett expressed deep concerns about certain specific policies currently in place. He particularly mentioned that he feels "afraid" of U.S. fiscal policy, mainly because the government tends to make decisions that could lead to currency devaluation. He echoed this concern in the annual report, clearly stating that the prevalence of "fiscal foolishness" would gradually erode the value of currency, and this reckless behavior has been common, with the U.S. having previously been on the brink of collapse due to it. He stressed that fixed coupon bonds cannot provide sufficient protection in the face of the risk of currency loss of control. Buffett believes that concerns about excessive spending are not unique to the U.S., but rather a global threat to currency stability. Therefore, Berkshire tends to avoid holding currencies that might devalue and emphasizes the importance of choosing stable currencies for investment. Market environment and Buffett's perspective In the broader market context, Buffett's concerns about U.S. fiscal policy and currency devaluation are not unfounded. Recently, the U.S. dollar has shown a significant trend of devaluation against major currencies, with investor confidence weakened by concerns over the sustainability of fiscal policy and global trade tensions. Some market analysts even predict that the dollar may further decline by 10-15% in the coming years. Further reading: Taiwanese stocks surge) New Taiwan Dollar skyrockets to "30.8" reaching a 16-month high! Changing stablecoins back to fiat currency results in less money. Moreover, in terms of financial reports, Berkshire's investment business spans insurance, transportation, dining, and technology companies, with first-quarter profit expectations dropping by 64%, from $12.7 billion to $4.6 billion. Buffett admitted that the impact of tariffs is difficult to quantify, stating that prosperity is not a zero-sum game; the success of one country does not mean the loss of another, and both countries can thrive. "I truly believe that other countries in the world becoming more prosperous will not cost us; the more we prosper, the safer we will feel." However, despite market volatility, Berkshire's stock price has risen 18.9% this year, far exceeding the S&P 500 index's -3.3% performance, indicating investors' confidence in its investment foresight. Related reports Buffett holds a lot of U.S. debt! Berkshire's holdings exceed $300 billion, 'far surpassing the Federal Reserve'; what is the oracle of Omaha calculating? Buffett rarely criticizes Trump: Raising tariffs is an act of war, the oracle of Omaha's bubble index hits a new high. Buffett's latest shareholder letter 'does not mention cryptocurrencies'! Cash reserves reach new highs, but he emphasizes still preferring to invest in stocks. "Buffett: I feel 'afraid' of U.S. fiscal policy strategies, will carefully choose currencies that won’t devalue"; this article was first published on BlockTempo (BlockTempo - the most influential blockchain news media).