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

Posted by on Jul. 8, 2011 at 1:30 PM
  • 10 Replies

 

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 Hillary 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.

According to the U.S. Debt Clock, America's total public debt equals close to $14.3 trillion which, according to the CIA World Factbook, is roughly 60 percent of the annual gross domestic product.

But even with this information, Buffett is unfazed.

"We had debt at 120 percent of the GDP, far higher than this, after World War II and no one went around threatening that we're going to ruin the credit of the United States or something in order to get a better balance of debt to GDP."

Some experts, like former Federal Reserve Chairman Alan Greenspan, have floated the idea of the Treasury paying some obligations while not paying others. This, Buffett says, is ludicrous.

"If you don't send out social security checks, I would hate to think about the credit meeting at S&P and Moody's the next morning," Buffett told CNBC. "If you're not paying millions and millions and millions of people that range in age from 65 on up, money you promised them, you're not a AAA." A triple-A credit rating is the highest possible rating that can be received.

Watch the full CNBC interview here:

 
http://www.huffingtonpost.com/2011/07/07/warren-buffett-debt-ceiling_n_892332.html

 


Thank God......it's Friday!!!

by on Jul. 8, 2011 at 1:30 PM
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Replies (1-10):
parrishsky
by Maxfield on Jul. 8, 2011 at 2:20 PM

IMO the smartest man in America. Wish people (namely repubs) would listen.

BleedinHeartMom
by on Jul. 8, 2011 at 7:37 PM

nanaofsix531
by on Jul. 8, 2011 at 7:47 PM

I just keep thinking that the right would rather watch the economy implode to see the President fail then make sure the American citizens get through this OK. But then most people in congress are millionaires and they won't take as much of the hit.

DVDoubleD
by on Jul. 8, 2011 at 8:06 PM

Good they shouldn't raise it....we are just foregoing the inevitable. To sooner we crash the sooner we can recover...we needed to spend all the resources we were using for bailouts on preparations for the upcoming depression.

<<Lib with the GOP on this one!!!

parrishsky
by Maxfield on Jul. 8, 2011 at 8:08 PM

I keep thinking this as well.

Quoting nanaofsix531:

I just keep thinking that the right would rather watch the economy implode to see the President fail then make sure the American citizens get through this OK. But then most people in congress are millionaires and they won't take as much of the hit.


Friday
by HRH of MJ on Jul. 9, 2011 at 12:35 PM

 

Quoting nanaofsix531:

I just keep thinking that the right would rather watch the economy implode to see the President fail then make sure the American citizens get through this OK. But then most people in congress are millionaires and they won't take as much of the hit.

 It often seems like that is their game plan. Then they can blame the Democrats and sweep the elections next year. Too bad many will likely fall for it, if that's the case.

I find it interesting that they are so concerned about it now considering how many times it was raised during Dubya's reign.

IOKIYAR

 


Thank God......it's Friday!!!

conniecabe
by on Jul. 9, 2011 at 12:54 PM

So in essence, you'd rather see another Great Depression than raise the debt ceiling? Are you serious? Do you know what the fall out would be if the scenario you're hoping for actually becomes reality?


Quoting DVDoubleD:

Good they shouldn't raise it....we are just foregoing the inevitable. To sooner we crash the sooner we can recover...we needed to spend all the resources we were using for bailouts on preparations for the upcoming depression.

<


DVDoubleD
by on Jul. 9, 2011 at 5:48 PM

I know exactly what Im saying. I am saying that it isnt a possibility of another great depression its probability. It WILL happen again and we have made things far far worse by trying to postpone it as long as we have. The debt grows bigger, income gaps grow bigger, poverty levels are rising and all the while we could have been through it by now had we let the big companies crash back in the bush administration. But we keep using band-aids when what we need is an amputation.

I dont WANT to see this happen but I live in reality and unlike so many others do not live with my head stuck in the sand. The global economy will crash and things will suck for a long time but as I said, the sooner we crash the sooner we can start to rebuild by finally assessing the problems and not the symptoms.

I am poor, I have no illusions about it, there is a good chance that I and many people around me will die. But you know what, Im tired of waiting for the ax to fall...we need to face reality already.

Quoting conniecabe:

So in essence, you'd rather see another Great Depression than raise the debt ceiling? Are you serious? Do you know what the fall out would be if the scenario you're hoping for actually becomes reality?


Quoting DVDoubleD:

Good they shouldn't raise it....we are just foregoing the inevitable. To sooner we crash the sooner we can recover...we needed to spend all the resources we were using for bailouts on preparations for the upcoming depression.

<



gludwig2000
by Gina on Jul. 9, 2011 at 6:31 PM

 Love it!

Quoting BleedinHeartMom:

 

conniecabe
by on Jul. 9, 2011 at 9:04 PM

Wow.   You've suceeded in accomplishing something my husband says is impossible....I'm speechless.

Quoting DVDoubleD:

I know exactly what Im saying. I am saying that it isnt a possibility of another great depression its probability. It WILL happen again and we have made things far far worse by trying to postpone it as long as we have. The debt grows bigger, income gaps grow bigger, poverty levels are rising and all the while we could have been through it by now had we let the big companies crash back in the bush administration. But we keep using band-aids when what we need is an amputation.

I dont WANT to see this happen but I live in reality and unlike so many others do not live with my head stuck in the sand. The global economy will crash and things will suck for a long time but as I said, the sooner we crash the sooner we can start to rebuild by finally assessing the problems and not the symptoms.

I am poor, I have no illusions about it, there is a good chance that I and many people around me will die. But you know what, Im tired of waiting for the ax to fall...we need to face reality already.


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