Warren Buffet: America Has Hit The Panic Button

Warren Buffet a highly influential American has finally hit the panic button, saying that we are going to be crushed under a mountain of debt taking into consideration the amount of debt the country is piling up.

warren_buffett.giLast 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.

Here are 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, that’s 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.

Which brings us to the million Dollar question “where’s it going to come from?” Most likely the printing press. And, ultimately, that will destroy the value of the dollar.

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61 Responses

  1. Kevin says:

    Re; Maria’s Comment:

    You can not “get rid of Wall Street.” Americans are free to invest their money in risky ventures if they want to. If you really want to save America’s fortunes and liberty, what you get rid of is the FEDERAL RESERVE!

    That is an illegal institution, and it’s authorization back in 1913 is the biggest scam in civilization’s history, and it continues to this day.

  2. Steve Wimer says:

    We need to stop providing free military protection for the world. What do we get out of it? Debt! That doesn’t work! We need to tax countries where we have a military presence.

  3. andrew says:

    Ruggy – depression – solved by WWII. Essentially, government spending money they dont have, to fund and proctect people’s jobs. Essentially this is what they are doing with their safety net of the big corperations and other spending initiatives. Its basic Keynes Economics.
    Only question is, is once the economy begins to regrow its legs (as in re-create jobs), the gov and fed should act swiftly and with conviction to raise interest rates and cut spending. In my opinion, investment should be for entreprenuraial activities, create new and better jobs. This speculative bubble that happens every 10 or so years has never been efficiently combated. In my opinion, capital gains tax needs to be raised to a level where investment costs the investor real money. This borrowing to invest with little or no consiquence is the real problem. An indivdual might be able to walk away from his obligations with little consiquence but for a nation its unthinkable. Unless you fancy living in a nation crippled for years by its debt like Argentina.

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    Warren Buffet: America Has Hit The Panic Button…

    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 valu…

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