Three Harsh Truths About Money: Buffett, Inflation, and America’s Debt Crisis
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I’ve got three big doses of economic wisdom. Two, gonna go down really easy. One, not so much. gonna take the easy pills first. Warren Buffett, again, God bless him, being interviewed on CNBC. Becky Quick always goes and does great interviews with him. And I love the two bits, two things he really pointed out.
because I’ve been pointing out the same thing too. Anyway, he was talking about the Federal Reserve. And he said something that I’ve been saying for some time, he said, I wish they had a 0 % inflation target. Once you start saying you’re going to tolerate 2%, that compounds pretty dramatically over time. And you’re saying to people, if you’re getting less than 2 % on your money, you are going
backward. Yes. Yes. Again, it’s part of the grand conspiracy to keep people poor and stupid. It is this 2 % target. We’re not even close to it at this point in time and you can’t even trust the government numbers. It’s been much, much worse than that. We’ve explained it in regards to the Markowski investments, bear necessities, inflation numbers for some time. Money should be constant.
In the same way, a pound is a pound, a foot is a foot. We measure things in a certain way. That’s what money should be. A unit of measurement. It shouldn’t change. It should stay the same. These inflation targets, how have they worked out over time? Again, you have lost over the past 30 years, 50,
five percent of your buying power. Ugly. Next dose of wisdom. Something we talk about because of this. One of the reasons why the amount of value money goes nowhere. The old cash is trash. More about it said I am willing to spend a hundred billion dollars this afternoon. I would rather.
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have a hundred billion dollars in a good business than have a hundred billion dollars in cash.
Why would he say something like that? Because his $100 billion in cash is going backwards. You spend $100 billion and he goes out and he buys a great business with great management, with a great outlook, everything in place, guess what? That 100,
billion dollars in 10 years becomes a few hundred billion dollars. Where a hundred billion dollars and you’re sitting, don’t know, you put it in some sort of money market and CD, yeah, it goes up, but not really. Because the value goes backwards. Again, you have to be, it’s an ownership society, people, okay?
The way things are going in this country, the way we continue to spend money, if you don’t own, if you don’t own, if you don’t invest, you’re going backwards. You’re not just treading water, you’re sinking. Bringing us to our jagged little pill.
Jay Powell, Jay Powell. And again, I’ve, I usually, know, butt heads with Jay Powell and I have in the past, I’m not a big fan of the Federal Reserve and the people that are there, but he made this point very clear. And quite frankly, Jay, you knew this.
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You knew this when Joe Biden was president. You knew this when Joe Biden was president and you didn’t open your mouth. again, that puts off. It’s that you’ll hear from a lot of the the magas and the people on the right. Well, Biden was president. Yeah, he did. You’re not wrong there, but it doesn’t mean that he’s not right now.
It doesn’t mean that he isn’t spot on right now. So what did he say? U.S. debt is growing much faster than the economy. I want you to understand that. Our debt is growing faster than the economy is. That is not sustainable. And he actually came out said, it will not end well if we don’t act soon.
We just need to stop. He actually came out and said, said, we we can, we can handle the debt where it is right now as bad as it is. We can handle it, but it cannot continue to grow at the rate it is growing. And yeah, yeah, yeah, I know. I know. We’re going to have 25 % GDP growth and the other just sheer utter bull excrement that comes out of the president’s mouth. Yeah.
25 % GDP growth. We had a banner year last year, right? Mr. President, 2%. Woo! Yeah, we’re really killing it there, aren’t we? And now, oh yeah, we’re gonna be booming this year too, especially with what’s going on. Not.
Need a balanced budget amendment. We’ve needed it for some time. We’ve talked about some of the things that Rand Paul has put forward over the years. Why don’t we get back to that? That’s common sense things. Like again, completely unsustainable and I quote, it will not end well. Three doses, three economic wisdom on Tuesday. Watchdog on wallstreet.com.
