When Warren Buffett speaks, people listen. For the first time in ten months (see “Buffett NY Times Op-Ed: Buy Now”, Top Gun FP, October 17, 2009), Buffett voiced his views in a very public forum with an op-ed in this morning’s New York Times: “The Greenback Effect”, Warren Buffett, The New York Times, August 19, A27:
With government expenditures now running 185 percent of receipts, truly major changes in both taxes and outlays will be required. A revived economy can’t come close to bridging that sort of gap.
Our immediate problem is to get our country back on its feet and flourishing — “whatever it takes” still makes sense. Once recovery is gained, however, Congress must end the rise in the debt-to-G.D.P. ratio and keep our growth in obligations in line with our growth in resources.
Unchecked carbon emissions will likely cause icebergs to melt. Unchecked greenback emissions will certainly cause the purchasing power of currency to melt. The dollar’s destiny lies with Congress.
– Warren Buffett, “The Greenback Effect”