Buffett: GOP Threatening To 'Blow Your Brains Out' Over Debt Ceiling

Republicans are playing a dangerous game by refusing to raise the debt ceiling, according to Berkshire Hathaway CEO Warren Buffett.

"We raised the debt ceiling seven times during the Bush Administration," Buffett told CNBC on Thursday. Now, the Republican-controlled Congress is "trying to use the incentive now that we're going to blow your brains out, America, in terms of your debt worthiness over time."

If Congress fails to raise the borrowing limit of the federal government by August 2, the date when the U.S. will reach the limit of its borrowing abilities, it will likely begin defaulting on its loans.

Buffett, who according to the Washington Post has helped raise money for Democratic candidates like Hillary Clinton in the past, has been highly critical of the actions of the Republican-controlled Congress. In May, Buffett stated at a Berkshire Hathaway shareholder's meeting that if the Congress failed to raise the debt ceiling, it would constitute "the most asinine act" in the nation's history, reports Reuters.

According to the U.S. Debt Clock, America's total public debt equals close to $14.3 trillion which, according to the CIA World Factbook, is roughly 60 percent of the annual gross domestic product.

But even with this information, Buffett is unfazed.

"We had debt at 120 percent of the GDP, far higher than this, after World War II and no one went around threatening that we're going to ruin the credit of the United States or something in order to get a better balance of debt to GDP."

Some experts, like former Federal Reserve Chairman Alan Greenspan, have floated the idea of the Treasury paying some obligations while not paying others. This, Buffett says, is ludicrous.

"If you don't send out social security checks, I would hate to think about the credit meeting at S&P and Moody's the next morning," Buffett told CNBC. "If you're not paying millions and millions and millions of people that range in age from 65 on up, money you promised them, you're not a AAA." A triple-A credit rating is the highest possible rating that can be received.

Watch the full CNBC interview here:

Comments

[mmcgrew]

04:17 AM on 08/15/2011

Mr Buffet...........controls SO much of our economy He does SO much without recognition.....

I'm not good for him.....buffett buys books for kids........HOW does that suck?

[Bob binard]

11:23 AM on 07/18/2011

Not to mention that Warren Buffet holds the insurance on millions of government workers that may fall behind in their payments to him.

[Bob binard]

11:09 AM on 07/18/2011

This is Warren Buffett who is Giving all his money to non Profits to Avoid having to pay any tax on it. Not only that.. That Warren Buffet pays the Tax rev each year equal to the full share of 100,000 Americans. When he gives that money away we then have to find another way to pay for these 100,000 that don't pay their own taxes. Between him, Gates and Turner they seem to be set to pull off some form of Atlas Shrugged move on the Government. Get the debt as high as they can.. Then kill the nation

[hamzahqutub89]

08:56 PM on 07/13/2011

this is practically a joke we all know that ultimately at the last moment congress is going to approve an increase in debt limit .I am tried of watching the same story repeated every year

[Syllogizer]

09:40 PM on 07/13/2011

I don't know what alternate reality TV programs YOU have been watching. But I do know you did not read either this article on Buffett's assessment very closely. For he made it crystal clear that we have NOT seen this "same story repeated every year". This really is a new low, which is why he could call it "the most asinine act" in US history.

[wallawizard]

06:44 PM on 07/11/2011

If Obama and Buffett does not want to get a tax cut then he should give it back and help reduce the deficit. Here is the form he can fill out.

http://goo.gl/jkcpn

[barbra1971]

11:17 PM on 07/13/2011

We want those who created that deficit to pay for it, please correct it in your diary.

[wallawizard]

02:34 PM on 07/14/2011

You are right...we need to determine precisely the percentage of blame to be doled out to the left and the right for our problems because we all know the only thing that matters in this country is that the other guys appear worst than we do ;-)

I hear lots of politicians and business men saying stuff like "I don't need a tax cut" blah blah blah well there is a solution for that...giv­e it back there is an official process to do just that. I would think by giving the money back the politicians would be leading by example and they would be in a good position to encourage others to do the same.

[JeffB]

01:14 PM on 07/11/2011

"Blow your brains out?" Just a few months ago those words were seen as incendiary...

[Syllogizer]

09:41 PM on 07/13/2011

And rightly so. But nowhere near as incendiary as the Republicunning dash to run the country over a cliff. That is why he was fully justified in using the expression here.

[flyingaspidistra]

11:43 AM on 07/11/2011

Its not just the debt ceiling. Its seemed for years that the R's want to "blow our brains out" in general.

[Keevion]

09:37 AM on 07/11/2011

Please keep in mind that the number one priority of the republicans above ALL else is to make President Obama a one-term president. They are perfectly willing to support and even encourage high unemployment and the complete collapse of the American way of life ( the United States of America) if it means a republican can replace President Obama as President.

[Bob binard]

11:18 AM on 07/18/2011

Keevion.. The Goal of the GOP is to win. But, They were Elected by the people to Cut spending. If they don't do the will of the people.They will NOT WIN.

KEEVION..What do you think will happen when people stop loaning us money to pay our debt. What will you have to cut then?

[Keevion]

01:34 PM on 07/18/2011

True, if the US doesn't reform the way it taxes and spends and stays the course, eventually countries and people will stop buying our bonds.
I don't believe the way to fix our economy is by widening the gap between the haves and the havenots. Too many countries have the few rich and powerful with the majority fairly poor. We must figure a way to allow everyone to enjoy life, not just the few wealthy and powerful. A balanced approach to growing the economy would benefit all.

[Justin Ferguson]

08:43 PM on 07/24/2011

BOB...What do you think will happen when we stop paying debt from the money people loaned us?

Bob...Legal tender for all purposes public and private, except for when its not. get it?

[Bob binard]

11:20 AM on 07/18/2011

Ke...Remember the Democrats?? For 8 years telling us how the US couldn't afford the 200 billion a year in Deficit spending under bush... 48 democrats in the senate including obama voting NOT to raise the debt ceiling?

[Bob binard]

11:30 AM on 07/18/2011

Warren Buffett insures Millions of Government workers. Think about what a government shut down and lay off of employees would do to hurt his business. This is the True sign of Greed.

[Keevion]

01:39 PM on 07/18/2011

There is plenty of blame to go around. Why not work together to solve our problems and stop the blame game. I think of a football game where each side tries to beat up the other team in order to win the game. We must rise above a game mentality.

[Stewart Goss]

01:34 AM on 07/11/2011

Liberals hate the rich...unless of course they are Democrats.

Does Mr. Buffett live in debt like the USA? Nope. Yet he doesn't care about our debt? Strange.

[amcg50]

08:09 AM on 07/11/2011

No, but he runs large companies that have to deal with debt. He cares about out debt and he wants us to deal with it in a rational manner. Not just say "No' as the Tea Party folks would have us do!

[Keevion]

09:45 AM on 07/11/2011

Seems you forgot that bush/cheney didn't care about the debt and said so publicly and that the rich tend to get rich by taking from the poor. I believe "they" call it socialism.

[barbra1971]

11:20 PM on 07/13/2011

No they don't, in socialism all get part of the wealth, not like here only the top 2% (I am generous here).

[cassiopex]

12:13 AM on 07/11/2011

You may not be a perfect man but you're a great man, mr. Buffet.

And you're just plain right.

Again.

[calltoaction]

04:24 PM on 07/10/2011

so have the tea party radicals started calling Buffet a left wing communist socialist yet?

[dogbert888]

12:02 AM on 07/11/2011

The bottom line is that there are more people not paying taxes than those who do. The Russians were defeated without a shot by building our military through nuclear weapons, etc. The Russians and the communists impoloded. They became Capitalists. However, slowly but surely the socialists took over in the USA and between illegal immigration, affirmative action, Clintons loosening of the mortgage rules and the debacle that lead to the housing crisis/aka reparations,and the fact that people who have never paid a dime into the social security system are taking out benefits, we are headed for the same economic crisis the Russians went through when the Berlin wall fell, hold on folks, we are in for a helluva ride. Manufacturing left the USA about 15 years ago, we make nothing, no value added, we pass dollars between each other. Each time the govt takes a cut, and this has decreased our wealth.

[calltoaction]

04:14 PM on 07/11/2011

You know enough to sound like a complete id.iot.

[Joe Stafura]

10:36 AM on 07/14/2011

Amazing, there isn't a correct statement in the entire post! The mortgage rules were made by both parties, this is not political, it is a class war.

The elitists won in Russia and if Cantor and Ryan get their way, they will win here also. When you rail against banking regulations you are really saying is please rob me, since the 1930's criminals figured out it was a lot easier to rob the banks if you ran them, it has worked great since they talked a demented and declining Reagan into making them kings.

As for manufacturing; The US is still a major contributors to worldwide manufacturing, accounting for 19.4 percent of goods output. Hindered by the recession, US manufacturing only grew 1.8 percent over 2008-2010, however the industry still contributed an estimated $1.95 trillion to the American economy.

So we have 5% of the world population and we make 20% of the goods. if you think that is the sign of a crumbling manufacturing base then you are missing the point.

The US manufactured slightly less than China last year, they employed 100 million people and we employed 11 million, remember all those union busting and productivity gains you cheered as your 401K's went up and then down?

[GoodbyeRubyTuesday]

02:41 PM on 07/10/2011

Buffett says that he knows how to end the deficit crisis now and in the future: anytime the U.S. deficit is more than 3% of the GDP, all sitting members of Congress are ineligible for reelection.
I like his style!

[Huffer-10]

08:36 PM on 07/10/2011

I like that idea but I'd like the senate to play by that same rule. Get the dead wood and the crooks and career politicians sent back to the work force and some fresh ideas in Washington.

[EJavaM07]

10:39 AM on 07/14/2011

The workforce doesn't want, and cannot use, such 'dry wood ready for the fire'.

[Justin Ferguson]

09:18 PM on 07/24/2011

I could agree with that. The problem appears to be that shutdowns and such obviously are not painful enough for them. Although, I think that perhaps 3% is a bit overly optimistic and possibly overly cautious as well. We have several 2-7% annual expenditures that we can cut here and there, but I don't think we'll get it within 3%.

That's naturally making the large leap that everything in regards to revenue and value stayed the same

[CB5]

02:31 PM on 07/10/2011

Smart man. Very interesting interview.

[offmyrocker]

01:28 PM on 07/10/2011

must be Buffett wants something, this guy doesn't fart unless he is making money off of it

[GoodbyeRubyTuesday]

02:18 PM on 07/10/2011

Yeah, that must have been why he just gave $1.78 BILLION to charities.
He might know how to make money but Buffett is an old-fashioned philanthropist also.

[offmyrocker]

02:37 PM on 07/10/2011

buffet wouldn't give his dying mother 1 billion unless he is getting breaks. Maybe he see's something coming.

[Peter Boehringer]

09:20 PM on 07/10/2011

He just gave away $1.3 billion.

[marinatha]

12:29 PM on 07/10/2011

President Obama in case you have not notice the Rep Party still insist on running the country. Please let them know they do not. Thank you. ME

[Huffer-10]

08:38 PM on 07/10/2011

They do right now.