Oh how the liberals loved to exclaim that Warren Buffet loved and supported Obamamessiah, well yet again the chickens are coming home to roost! That chicken house is getting mighty crowded friends and neighbors. Between the chicken house and the underside of the bus, let me just say, you do not want to be in either! Yeah I said it and you are entitled to my opinion! VN8

By WARREN E. BUFFETT
August 18, 2009

Legislators will correctly perceive that either raising taxes or cutting expenditures will threaten their re-election. To avoid this fate, they can opt for high rates of inflation, which never require a recorded vote and cannot be attributed to a specific action that any elected official takes. In fact, John Maynard Keynes long ago laid out a road map for political survival amid an economic disaster of just this sort:

“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens....

The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

I want to emphasize that there is nothing evil or destructive in an increase in debt that is proportional to an increase in income or assets. As the resources of individuals, corporations and countries grow, each can handle more debt. The United States remains by far the most prosperous country on earth, and its debt-carrying capacity will grow in the future just as it has in the past.