Warren Buffett: United States deserves "quadruple A" credit rating

[jct74]

LOL


Investing guru Warren Buffett criticized the Standard & Poor's downgrade of the long-term US credit rating, saying it "doesn't make sense" and would have a limited impact on markets.

"I don't get it," the highly-respected founder and chairman of Berkshire Hathaway told Fox Business News late Friday, saying his Omaha, Nebraska-based company would hold onto its considerable trove of US Treasury bills.

"In Omaha, the US is still triple-A. In fact, if there were a quadruple-A rating, I'd give the US that," he said, hours after the S&P cut the US credit rating from a sterling AAA to an AA+.

Buffett said his firm holds well over $40 billion in short end T-bills and that the decision "doesn't tempt me to sell. We'll stay right there."

...

"The US, to my knowledge, owes no money in currency other than the US dollar, which it can print at will. Now if you're talking about inflation, that's a different question," he added.

http://www.rawstory.com/rs/2011/08/07/investment-guru-warren-buffett-says-us-downgrade-doesnt-make-sense/

[angelatc]

I think I'm ready for him to die.

[MJU1983]

Is it just me or is Warren Buffet making less and less sense every time he speaks?

[specsaregood]

Is it just me or is Warren Buffet making less and less sense every time he speaks?

Actually what he said made perfect sense:


"The US, to my knowledge, owes no money in currency other than the US dollar, which it can print at will. Now if you're talking about inflation, that's a different question," he added.

This is absolutely true. The US deserves a quadruple A rating for its ability to repay its debts in US dollars.

[MJU1983]

teehee, I see what you did there. :)

I chuckle everytime I watch this and see Goolsbee's face.


http://www.youtube.com/watch?v=-_N0Cwg5iN4
http://youtu.be/-_N0Cwg5iN4


http://i6.photobucket.com/albums/y205/MJU1983/aa-Dees-bernanke-printing-money-with-obama-and-biden-watching.jpg

http://i6.photobucket.com/albums/y205/MJU1983/P06-090119-a2.jpg

[AmericasLastHope]

"The US, to my knowledge, owes no money in currency other than the US dollar, which it can print at will. Now if you're talking about inflation, that's a different question," he added.

Is it just me, or was it not that long ago when it was actually taboo for those in the mainstream to talk about "printing money?" Now they're all talking like it's our saving grace. We can print our way out, WE ARE SAVED!

[Anti Federalist]

Actually what he said made perfect sense:


"The US, to my knowledge, owes no money in currency other than the US dollar, which it can print at will. Now if you're talking about inflation, that's a different question," he added.

This is absolutely true. The US deserves a quadruple A rating for its ability to repay its debts in US dollars.


"The US, to my knowledge, owes no money in currency other than the US dollar, which it can print at will. Now if you're talking about inflation, that's a different question," he added.

Is it just me, or was it not that long ago when it was actually taboo for those in the mainstream to talk about "printing money?" Now they're all talking like it's our saving grace. We can print our way out, WE ARE SAVED!


Yes, quite right.

And now with all TPTB running around making that same point, it becomes pretty evident that was the plan all along:

Inflate and pay it all back with worthless notes.

[Kludge]

And now with all TPTB running around making that same point, it becomes pretty evident that was the plan all along:

Inflate and pay it all back with worthless notes.
That's been one of the few things I've admired about the USG in the past few decades. Somewhere, someone hatched the brilliant idea of creating massive amounts of US debt, then inflating the currency so the value of the debt drops dramatically. The USG get to spend the money while it's worth something, and then print up money to pay off our debtors in worthless notes. It's this wonderfully long-term plan, which only a government would have incentive to do. The government gets to increase its power AT A GAIN. -And when the USG's pounded the USD into the ground, they can go on to a hot, new currency. Those fool enough to hold US debt themselves are screwed, and the USG comes out on top. Economically leading the world again, the process starts all over because our government's financial policies make up the most efficient rape system in the world.

While that's happening in the macro world, everyone in the micro world must stay productive or fall back on gov't dependency, because only productivity or welfare can keep them afloat as their dollars decline in value. An incredibly genius retirement tax to punish the lazy 70+ y/o ne'er-do-wells. Ah - but wait -- those lazy old farts can still be productive. Why - they can make the SAFEST INVESTMENT IN THE WORLD by giving their money to the gov't on loan! You don't want to be LIBERAL with your money during retirement. It's fucking genius, guys! The government always wins so long as people participate.

[Kludge]

Put another way -- if the USG had $14.5t of debt in 1913, it would today cost the gov't the value of <$650b (in 1913 dollars) less interest to pay off. In less than 100 years, the USG would have inflated away ~$14t of debt.