Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Uh… Warren… It Was a World War

IMG Auteur
Published : January 23rd, 2013
269 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis

Like many others, I used to hold 82-year old billionaire Warren Buffett in the highest regard, that is, back when he would talk about such things as our ballooning trade deficit or our bubbly stock market that he didn’t understand and wanted no part of. But, lately, he seems to be showing his age and his latest ramblings about the nation’s debt as recounted in this Marketwatch story are pretty stunning.

“It is not a good thing to have it going up in relation to GDP, that should be stabilized, but the debt itself is not a problem,” the CEO of Berkshire Hathaway said in an interview broadcast Sunday on the CBS “Sunday Morning” news show.

The nation’s debt is “a lower percent of GDP [gross domestic product] than it was when we came out of World War II. You’ve got to think about it in relation to GDP,” added Buffett, a vocal advocate for increased taxes on the nation’s wealthiest, a stance he alluded to in the broadcast.

The chart below from a paper(.pdf) by Daniel Thornton of the St. Louis Fed might be worth studying here.

24hGold - Uh… Warren… It Was a...

However you count the debt, it’s way to big by historical measure and, as shown above, it used to only grow during a time of war and then, when hostilities ceased, some of the debt would be paid off. But, that’s not been the case for decades now and to say that, somehow, today’s debt-to-GDP ratio is OK because it’s less than it was after World War II is, well, kind of stupid. My God – it was a world war!

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Tim Iacono is the founder of Iacono Research, a subscription service providing market commentary and investment advisory services specializing in commodity based investing.
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Debt, Dollars, DOW, War, Silver, and Shirts
20 AugRAHU12
Right here on this web site you could locate the most successful as well as the very best device on the net for Roblox Robux hacks. If you favor va...
Deep Subprime Auto Loan Delinquencies Reach 2007 Levels: The Next B...
22 AugThe Recusant
MIsh: Great article and headsup on what's happening in the subprime loan and bond sector. The possibility of a crash due to the auto loans...
War Games: China Say It Will Prevent US From Attacking North Korea ...
20 Augkevthorne1
Done nothing? How about: "There was a pre-emptive attempt from Koreans to reunite their country in 1950 after resisting American occupation...
War Games: China Say It Will Prevent US From Attacking North Korea ...
18 AugRckpyle1-2
Tough talk from China. Ask yourself, would China be willing to see Beijing become a crater if it attacked the US to aid NK? No, tough talk is cheap...
NY Fed President Wants Consumers to Tap Home Equity: Didn’t We Try ...
17 Augmikejuha
As a prudent investor, I eliminated all mortgage debt in January 2009. When I paid off my loan with Bank of America, they initially refused to tak...
Total Eclipse
19 AugThe Recusant-2
"I’d like to hear [sic] an argument..." Historical statues typically honor or remember people of greatness, the beneficial contribution th...
Can a government surplus cause the economy to tank?
18 Auggfs543
Your dissection is incisive, Steve. You weren't refuting just this one writer. You were beating up on popular Keynesian fallacies.
Can a government surplus cause the economy to tank?
17 AugDRGEORGE
Thank you very much for that Steve. But please just don't 'leave it there'. The author of that article apparently intends to expand on that bullshi...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS