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Conservatism mixed with a little end time theology

Warren Buffet Warns of Consequences of Massive Debt

If you don’t believe the warning Conservatives are sounding regarding the US debt levels, please heed the words of one Oracle of Omaha:

A highly influential American has finally hit the panic button about the tremendous mountain of debt the country is piling up.

Last year, Warren Buffett says, we were justified in using any means necessary to stave off another Great Depression.  Now that the economy is beginning to recover, however, we need to curtail our out-of-control spending, or we’ll destroy the value of the dollar and many Americans’ life savings.

Here are some scary statistics given by Buffet:

  • Congress is now spending 185% of what it takes in
  • Our deficit is a post WWII record of 13% of GDP
  • Our debt is growing by 1% a month
  • We are borrowing $1.8 trillion a year

The $1.84 trillion budget deficit for this year trumps the $454.8 billion deficit left by Bush, and most of that was his $383 billion stimulus.

Plus, I really don’t like his comment regarding the ‘destruction of American’s life savings.’  Will our money all of the sudden disappear?  No.  What he’s referring to is the purchasing power of those dollars.  What we will be able to buy with the money in the bank will be drastically reduced, thereby ‘destroying’ our efforts to support ourselves post-work career.

In other words, it would be similar to the German scenario post-WWI where it took a grocery cart of money to buy one loaf of bread.

Well, hopefully it wouldn’t be that bad 🙂

But, just to put the deficit in perspective, if you had $1,000,000,000,000 in cash, you could buy (stats courtesy of Econ4U):

  • 282 billion Big Macs
  • 3.1 million Ferrari 599 GTBs
  • 769 New Yankees Stadiums
  • 28,571 flights into space as a tourist

Anyone up for a journey to space? 😉

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Filed under: Economy, Media/News

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