Buffett: Economy out of the frying pan, into the fire

The U.S. economy is out of the frying pan and into the fire, Warren Buffett writes in an op-ed piece in the New York Times today. The very actions that saved the financial system from the brink of ruin now threaten the long-term health of the dollar.

"The United States economy is now out of the emergency room and appears to be on a slow path to recovery," Buffett wrote. But rescuing banks and the unregulated "shadow banking system" comes at a high cost, and will result in a budget deficit of $1.8 trillion this year, or 13 percent of gross domestic product. Excluding World War II, this is more than twice as high as anytime since 1920.