Warren Buffett and Debt Ceiling
The billionaire investor Warren Buffet said that Congressional Republicans aren’t stupid enough to hold America’s full faith and credit hostage to politics and also said in an interview that that Congress will most likely raise the nation’s debt ceiling in instant to shun defaulting on all its obligations, though it likely won’t happen until the final hours. He also said the debt ceiling politics by Republicans leaders are a weapon of mass destruction of a unusual source to get their way on other legislation.
The Congressional Republicans are planning to use the debt ceiling as a weapon to delay a critical provision of President’s Obama Affordable Care act or get backing for the controversial Keystone pipeline. According to the Treasury Secretary Jack Lew, America won’t even have enough money to pay the bills if they fail to raise the nations borrowing limit also known as debt ceiling on which there is already a lot of politics is going on between the parties. And there is already a lot of debate going on over the debt ceiling and if that results in a deadlock, it could potentially cause a financial meltdown.
After all the comments by Warren Buffet, Charlie Munger took it one step ahead and said that he thinks that Warren buffet actually understands how awful it is. He further added, it’s deeply immoral to do this. While the Government shutdown is already affecting the economy of the country by 0.1 to 0.15 percentage points of GDP growth each week and even a temporary default on the country’s debt could send the U.S and world economies into a recession.