Thread: Buffett: We're Going to Be Crushed Under Mountain of Debt

Buffett: We're Going to Be Crushed Under Mountain of Debt

Posted Aug 19, 2009 11:51am EDT
by Henry Blodget

video: at the link

A highly influential American has finally hit the panic button about the tremendous mountain of debt the country is piling up.

Last year, Warren Buffett says, we were justified in using any means necessary to stave off another Great Depression. Now that the economy is beginning to recover, however, we need to curtail our out-of-control spending, or we'll destroy the value of the dollar and many Americans' life savings.

Some not-so-fun facts from Buffett's editorial today in the New York Times:

-Congress is now spending 185% of what it takes in
-Our deficit is a post WWII record of 13% of GDP
-Our debt is growing by 1% a month
-We are borrowing $1.8 trillion a year
-$1.8 trillion is a lot of money. Even if the Chinese lend us $400 billion a year and Americans save a remarkable $500 billion and lend it to the government, we'll still need another $900 billion.

So, where's it going to come from? Most likely the printing press. And, ultimately, Buffett says, that will destroy the value of the dollar.

http://finance.yahoo.com/tech-ticker/ar ... et=&ccode=
618 Comments

Peter Schiff, and Ron Paul have been saying this for years. Buffet is a little late to the game. My guess is that he is in CYA mode, for supporting the Porkulus bill.

Glenn Beck has been SCREAMING THIS,and so have the guests on his show, and Buffet is just waking up to this fact???

I couldn't believe it when he supported Obama. Unbelievable! I thought there must be an ulterior motive, because he certainly couldn't REALLY believe that Obama was "The One"!

Peter Schiff, and Ron Paul have been saying this for years. Buffet is a little late to the game. My guess is that he is in CYA mode, for supporting the Porkulus bill.

I'm more cynical. Buffet is too rich and too savvy to have fallen for any of Obama's economic policies. I was shocked when he became one of Obama's biggest backers. Now that he is backing out I believe he had behind-the-scenes manipulations going on that benefited from the 'porkulus plan', and by ducking out now he has more behind-the-scenes manipulations from which he will benefit.