Warren Buffet Says the U.S. will have to Inflate Its Way Out

Last May 4th, during an interview in CNBC’s Squawk Box, Mr. Buffett stated that “A country that continuously expands its debt as a percentage of GDP and raises much of the money abroad to finance that, it’s going to inflate its way out of the burden of that debt”. He also added: “That becomes a tax on everybody that has fixed-dollar investments”.

He should have said that inflation is a tax on anybody who don’t owe any money. The only people who will benefit from inflation are those with credit card debt that exceeds their net worth, and those paying mortgage.

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About ctapang

I am a Software Design Engineer. I have just abandoned the huge army organized to make .Net programming the one dominant programming system. I now program in Typescript which (surprise) is also from Microsoft. Aside from my day job as a programmer, I am also involved in a movement (http://correctphilippines.org) to correct the Philippine constitution. It's an ambitious undertaking in itself, and there's no guarantee that improving our constitution will improve things. However, one thing is certain: if we don't establish a rational constitution, we will continue on our path of self-destruction. What kind of government is best? For me the best government is that which governs the least. We need the government not because it can provide for us but because it keeps us from running into each other. The proper function of government is that of a traffic light: it prevents us from bumping each other, but it does not tell us where to go.
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