Warren Buffett: Debt of the United States Is a Danger
The U.S. economy is no longer in an “urgent” situation and seems to have entered in a slow process of revival, but the government must address the secondary effects of the huge stimulus programs, particularly the strong increase of public debt, according to billionaire Warren Buffett.
“The country will have to face the side effects of huge doses of money medicine that continue to be managed,” Buffett warned in an editorial published by the New York Times.
The net debt of the United States is growing and will increase in fiscal year 2009-2010, with a one percentage of Gross Domestic Product (GDP) per month, and will reach 56% of GDP in July next year , from 41% of GDP now.
According to Buffett, once the U.S. economy starts to recover, Congress and the government must end the growing public debt to GDP ratio and begin to keep the obligations it assumes at a commensurate level of available resources.