You got it.

When people with a lot of investments, who are not otherwise facing some immediate cost... literally cash them out, and hold cash, as Buffet has done /is doing...

That means he is betting the losses from inflation will be less than the losses from those other investments tanking.

That means Buffet is roughly predicting something like a -2 or -3 % (or worse) Q1 25 GDP 'growth'... ie, general economic decline.