Warren Buffett warned, that the failure to raise the U.S. public debt ceiling '' is likely, will be the stupidest thing to do, who ever held a Congress ''.
The opinion of the world's main investor
The famous investor and CEO of Berkshire Hathaway made these comments a decade ago., but they are just as relevant today.
Democrats and Republicans quarrel again over ceiling rise, even though, what to 18 October, the Treasury should run out of cash.
If the US defaulted on its debt, this would cause shock waves in financial markets and in the global economy.
Any crisis will have the greatest impact on the stock markets Any crisis will have the greatest impact on the stock markets
President Joe Biden this week called Republican behavior `` hypocritical, dangerous and shameful. Senate Minority Leader Mitch McConnell, meanwhile, ruled out bipartisan support for raising the ceiling., claiming, that it will help Biden pass his broad infrastructure bill.
What risks do investors take on??
Buffett, speaking at Berkshire's AGM 2011 year, emphasized the stupidity of legislative opposition at the time. He pointed to Indiana's lawmakers 1897 year, who, for the sake of simplicity, proposed to change the value of pi by exactly three.
- The head of Berkshire said, what was a mistake to set a debt ceiling, when the US economy continues to grow, as a result, expanding its debt potential. This does not necessarily support an increase in public debt as a percentage of GDP.
Buffett claimed, that the US will not face a debt crisis, while they issue debts in their own currency. He singled out inflation and excessive printing of money as the only real risks of government borrowing..
