Warren Buffett has criticized the recent debt ceiling crisis as a stupid waste of time

Warren Buffett

Warren Buffett.Bill Pugliano / Getty

  • Warren Buffett doesn’t expect a debt ceiling failure to lead to a U.S. government default.

  • He criticized the 2011 strike as a silly waste of time and said borrowing limits should not exist.

  • Buffett warned that not raising the debt ceiling could be the dumbest move ever by Congress.

Warren Buffett has ignore concerns that Congress would not raise the debt ceiling and that the federal government would be forced to default on its loans. He went even further in an earlier standoff, describing the clash as a stupid waste of time and calling for the borrowing limit to be scrapped altogether.

Lawmakers will not “let the debt ceiling plunge the world into turmoil,” the prominent investor and Berkshire Hathaway CEO said during his company’s press conference. Annual shareholders meeting this month. “I’m about to change.”

During the debt ceiling crisis of 2011, Buffett emphasized how foolish lawmakers would be to let the country run out of money.

“It’s probably the dumbest act Congress has ever taken,” he said, according to CNBC’s Warren Buffett Archives.

The billionaire executive compared the absurdity of this idea to the Indiana Pi Bill — a proposal to change the value of the irrational number Pi to 3.2 for simplicity. that is unanimously passed by the State House of Representatives in 1897, but adjourned indefinitely by the Senate.

Buffett argues that the debt limit never made sense in the first place, since America’s ability to borrow increases as it grows.

“Having a debt ceiling in the first place was a mistake,” he said, before adding that it may not be desirable for U.S. debt to grow as a percentage of GDP.

He lamented the political deadlock in Washington during that period: “These games are played, and all the time is wasted and the amount of silly talk you hear.” “It seems like a waste of time for a country with so much to do.”

“I’d like to see them get rid of this idea, because it leads to these recurring deadlocks, where people use it for postural purposes and things like that,” he says of the limitation. in debt.

Buffett asserts that as long as the United States issues bonds and other notes in its own currency, the country will never experience a debt crisis. However, he warned that printing too much money and fueling high inflation is a concern when a country spends freely.

America violates the treaty Debt ceiling of $31.4 trillion in JanuaryAnd Experts believe that it may run out of money in early June. Now, lifting the limit and allowing the government to cover the cost of Social Security checks, veterans benefits and other financial obligations depends on a politically divided Congress.

Read the original post on Business Insider


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