Buffett: Debt Ceiling Debates Waste Time in Congress


warren-buffetThe United States shouldn’t have a debt ceiling because the debates surrounding lifting the limit only waste time in Congress, says famed investor Warren Buffett.

“All it does is slow down a process and divert people’s energy, causes people to posture. It doesn’t really make any sense … To have this artificial limit, which always gets raised in the end, disrupt the activities, in an important way, of Congress, periodically, I think it is a waste of Congress’s time,” Buffett tells CNBC.

The government has hit its $14.3 trillion debt ceiling and needs Congress to lift it to avoid an Aug. 2 deadline.

Some in Congress are proposing a backup plan that would allow the President to increase the debt ceiling in three increments through 2012 with approval.

That won’t solve the problem at hand.

“I think it’s designed to give political cover to people, and I don’t think we need political cover now. I think we need a real deficit reduction plan, and I think it’s an opportunity to do that,” Buffett says.

“Any plan that simply says, you know, we’re going to think about this later, essentially, and we’re going to try and figure out how if things go wrong we can blame it on the other party, is a terrible mistake.”

Moody’s Investors Services agrees with Buffett and adds that a backup plan must call for spending cuts.

“Any proposal that reduced the risk of payment disruptions would be a positive step in the short term,” the agency says, according to CNNMoney.

“Without more substantial deficit reductions being included in such a plan, it would be negative for the long-term outlook,” the report said.

{Money News.com/Matzav.com Newscenter}


  1. Orwell, I’ve never read a commenter who suffers so from self-inflicted blindness. They are not being “pro-Obama”, they’re being anti-Congressional stupidity.

  2. #3 has problems with English.
    They are not for a debt ceiling and the Republicans are.

    Buffet, Bob Dole, and Bill Frist called for universal HC and the Republicans have been against it forever.

    Buffet is for a trillion more in stimulus and the Republicans are the furthest from that

    Buffet is for a tax hike on the wealthiest ( so is Alan Greenspan)- the republicans are not

    commenter #3 you need to wake up and start reading books from the leftist side of the aisle if you don’t want to continue to waddle in the muck and the mire

  3. PS. the article also points out that Buffet is calling attention tot he fact that Obama’s current offer is indistinguishable from a plan that would be authored, loved, and passed by a Republican Congress under Reagan HW Nixon or Ford. The republicans are angling for a short term bill that doesn’t fix anything and doesn’t last through November 2012 so that as economy gets worse it can be blamed on O.

    So despite O offering 6:1 spending cuts to tax hikes (on the wealthiest 2%) they are having trouble with anglers in the Republican party seeing this big deficit reduction bill going against them.

    is a dream deal no o tax cuts really for not wanting to pass a bill that willand dont really the Republicans are

  4. Orwell, it’s funny that after using the word “rifiduling” you say that someone who is a writer has problems with English.

    You’ve completely missed my point, so “let me be clear”. Buffet and Moody’s, as quoted in the article, were not commenting on Obama himself. They were commenting on their positions regarding the current debate. To say that they are therefore proponents of Obama would be a LIE (according to your own loose definition).

    I agree that Republicans are more at fault on this issue. I also don’t strongly oppose tax hikes to the highest bracket. I definitely oppose a cap, cut and balance bill. And yes, I think that some congressional Republicans are playing political games at the risk of the American people.

    But what makes me absolutely sick is your ridiculous obsession with defending Obama and trying to bolster his image. In your eyes, he can do no wrong. You twist every piece of information you can in his favor, blindly defend him against fair criticism, and constantly whine about how great he is, even when it’s uncalled for (e.g. “See? See? Even Buffet and Moody’s are proponents of Obama and are rifiduling [sic] the Republicans. See Matzav readers? Obama’s really great after all!) That I call self-inflicted, ideologically-driven blindness.