Buffett: Debt Mountain Could Turn America Into A Banana Republic (BRK)
Joe Weisenthal|Aug. 19, 2009, 6:48 AM|38
PrintTags: Economy, Economy, Debt, Money, Federal Reserve, U.S. Government, Warren Buffett
Berkshire Hathaway CEO Warren Buffett, a supporter of Barack Obama and an indirect beneficiary of the bailouts, writes in a NYT op-ed to warn about the crushing mountain of debt the US government is now building up.
After laying out the staggering numbers, he concludes thusly:
I want to emphasize that there is nothing evil or destructive in an increase in debt that is proportional to an increase in income or assets. As the resources of individuals, corporations and countries grow, each can handle more debt. The United States remains by far the most prosperous country on earth, and its debt-carrying capacity will grow in the future just as it has in the past.
But it was a wise man who said, “All I want to know is where I’m going to die so I’ll never go there.” We don’t want our country to evolve into the banana-republic economy described by Keynes.
Our immediate problem is to get our country back on its feet and flourishing — “whatever it takes” still makes sense. Once recovery is gained, however, Congress must end the rise in the debt-to-G.D.P. ratio and keep our growth in obligations in line with our growth in resources.
Unchecked carbon emissions will likely cause icebergs to melt. Unchecked greenback emissions will certainly cause the purchasing power of currency to melt. The dollar’s destiny lies with Congress.
Thursday, August 20, 2009
Warren Buffet talking about the demise of the USD
Looks like the Nail is in the coffin for the Buck, it's only a matter of time until the general public accpects what is comming.... a much lower standard of living in the US