Reuters Writes: Buffett calls threat to not raise U.S. debt limit a ‘political weapon of mass destruction
NEW YORK (Reuters) – Warren Buffett, chairman and chief executive of Berkshire Hathaway (NYS:BRK-A – News), said Wednesday that the threat of not raising the U.S. debt ceiling is a political weapon.
The idea that Congress could fail to raise the $16.7 trillion U.S. borrowing limit is a “political weapon of mass destruction,” Buffett told cable television network CNBC.
Buffett said Berkshire Hathaway owns short-term Treasury bills and is “not worried” about the bills being paid, despite concerns about the U.S. debt ceiling.
Of course Mr. Buffett is correct. What happened in Washington over the last couple of weeks is nothing short of a disaster. An absolute disaster. What Mr. Buffett forgot to mention is that this “political weapon of mass destruction” has already gone off.
Surely, the US will not default on its debt. In my previous posts I have clearly stated that neither the market nor should you care about that. The damage has already been done and will be eventually felt on a different front. This front has to do with our creditors. I bet you my left leg that this situation was very closely watched and analyzed by both Japan and China (two of our biggest creditors).
Their conclusion will be very simple. Washington is being run by idiots who have no problem putting the wealth and the future of our countries at risk. Therefore, we should diversify. I bet you my right leg that these countries will start to lessen their US Debt exposure (if they haven’t started already) as soon as possible. Interest rates will go up and that will cause a significant slow down in the US Economy and a substantial DROP in the financial markets.
BOOM. Thank you Washington.
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Of course they are gonna raise the debt limit,the Ponzi system relies in acquiring more debt to sustain itself, if we try to balance the budget the Ponzi fails. Timing when the fed is gonna pull the rug out from the middle class again is the game. Therefore I’m very interested in your timing work. Greg
Hi Greg,
Yep. Again, I agree with everything you say. Thank you. We are almost there.
Also what has me worried, is if there is conflict in the world could it be that American stock market could be a holding ground for people to park there money just from perceived safety which would cause a rise in the stock market. America still only country where big enough to park enormous wealth