Many investors are turning to gold & silver as a safe-haven investment against the economic turmoil we find ourselves in. Warren Buffett of Berkshire-Hathaway made one of his regular appearances on CNBC this morning. He discussed a variety of issues but first and foremost was the National Debt. The Debt debate is one of the factors driving demand on the metals markets.
When asked his thoughts on the current Congressional debacle in handling our debt ceiling Buffett commented, It’s just silly to do and we raised the debt ceiling seven times during the Bush administration and now in this administration, they’re using it as a hostage and you really don’t have any business by playing Russian roulette to get your way in some other matter. We should be more grown up than that.
Buffett went on further to add, we had debt at 120 percent of GDP, far higher than this after World War II and no one went around threatening we’re going to ruin the credit of the United States or something in order to get a better balance of debt to GDP. We just went about our business and people did it in a cooperative way, but they didn’t do it by sticking guns at each other’s heads.
Meanwhile, back on the Hill the debates wage on and the potential disaster on the Global economy could fundamentally change the US economy for generations to come. (The $14.3 Trillion Cliff of US National Debt) There needs to be a mature discussion on this matter with the only agenda being to make the best choices, averting another major crash in the US economy.