As the euro hits record highs against the US dollar legendary investor Warren Buffet is looking to put some of his $40 billion into euro-based assets.

According to Bloomberg, “Buffett, who will embark on a four-city European trip next month to meet with owners of family businesses, has for years been laying the groundwork for an acquisition in Europe.”

“It could well get worse for the dollar,” says Kathy Lien, chief strategist at Forex Capital Markets over at Casey Research.

“This continual rise in inflationary pressures raises the risk of a rate hike from the European Central Bank.”

“The war between inflation and deflation will leave millions of casualties, but no clear winner,” says Bill Bonner. “Instead, prices for US stocks, houses and labor are marked down…while commodities, oil, gold (and even some emerging markets) go up.”

“But we could be wrong in either direction. Either inflation or deflation could soon emerge victorious. Most analysts think inflation will be the clear winner – with big boosts, not only for commodities, but for the economy and stocks… and maybe even houses. They think the financial industry has bottomed out and will soon get back on its feet and begin inflating the whole economy.”