Buffett: GOP Threatening To ‘Blow Your Brains Out’ Over Debt Ceiling

[Derechos]

Republicans are playing a dangerous game by refusing to raise the debt ceiling, according to Berkshire Hathaway CEO Warren Buffett.

"We raised the debt ceiling seven times during the Bush Administration," Buffett told CNBC on Thursday. Now, the Republican-controlled Congress is "trying to use the incentive now that we're going to blow your brains out, America, in terms of your debt worthiness over time."

If Congress fails to raise the borrowing limit of the federal government by August 2, the date when the U.S. will reach the limit of its borrowing abilities, it will likely begin defaulting on its loans.

Buffett, who according to the Washington Post has helped raise money for Democratic candidates like Hilary Clinton in the past, has been highly critical of the actions of the Republican-controlled Congress. In May, Buffett stated at a Berkshire Hathaway shareholder's meeting that if the Congress failed to raise the debt ceiling, it would constitute "the most asinine act" in the nation's history, reports Reuters.


http://www.vxec.com/2011/07/buffett-gop-threatening-to-blow-your-brains-out-over-debt-ceiling/

[girl gone mad]

1. Meh.

A sovereign currency government doesn't need to borrow money in order to spend. This is something that's done primarily for the benefit of the large private banks. A downgrade could be the best thing that ever happened to us, to be honest, if it would force us to finally use our fiat system more appropriately. It might hurt Wall Street welfare queens like Buffet who are dependent on the antiquated system, but the rest of us would be much better off.

[Creideiki]

2. So what's a good price for a loaf of bread?

$2.50? $10? $150? $2000?

How far should we debase the currency?

[girl gone mad]

4. Why do you assume the currency would be debased?

[Creideiki]

6. Economics...Finance...

Even a basic understanding. Yeah, let's just print more money and that won't debase the currency? What do you think debasing the currency is, exactly? Sticking your tongue out at it?

[girl gone mad]

8. Your comment makes zero sense.

Start here:

http://neweconomicperspectives.blogspot.com/p/modern-money-primer-under-construction.html

When you work your way to the end, I'd love to have a rational discussion on economics, sans the hyperinflation hysteria.

[unblock]

3. except that that can't happen without an act of congress -- and the house obviously won't play along

[girl gone mad]

5. If the choice comes down to paying 20% to foreign creditors..

or simply issuing fiat at no interest, they might.

[Creideiki]

7. Pssst...That's called debasing the currency.

[girl gone mad]

10. Uh, no...

it isn't. Debasing the currency would involve government spending or "printing" far in excess of our ability to ramp up our productive capacity. Simply moving from a system of issuing debt via private banks to a system of direct spending is not in and of itself inflationary.

[unblock]

11. what do you think quantitative easing is?

the fed buys up existing securities, such as mortgage pools and even treasury debt (albeit not directly from the treasury) and pays for it with money that was created out of thin air.

sounds like fiat at no interest to me.


but that doesn't help the treasury with its budget issues.

[sarcasmo]

9. If the Government defaults on it's loans then my household can default on our loans, correct?