Good commentary here from Warren Buffett on the debt ceiling. He correctly notes that Congress is playing an outrageous game of Russian roulette with the debt ceiling and using it merely as a political tool to hold Americans hostage while they pass their desired legislation. Via CNBC:
Warren Buffett tells CNBC that Congress is playing a “silly” game of “Russian roulette” by threatening not to raise the nation’s debt limit as it debates deficit reduction. “We should be more grown up than that.”
In a live interview on Squawk Box from Sun Valley, Idaho, where he’s attending the annual Allen & Co. media conference, Buffett warned of “enormous disruption” if there’s no deal to raise the U.S. debt limit.
What would happen if the Treasury does get to the point where it has run out of money?
“Nobody knows. I mean the odds are very good that people will assume we’ll get things straightened out within a few days and nothing dramatic would happen. On the other hand, you’re playing with fire when you don’t need to play with fire. We don’t need to tell the rest of the world that anytime people in Congress start throwing a tantrum that we’re not going to pay our bills.”
Buffett tells Becky Quick that the country’s bills will be paid one way or the other, and Congress should address the situation with “maturity.”
The full interview is attached:
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.