The “Oracle” Reveals
Everyone loves a handout.
My kids love them and so do the American people.
It is assumed that the wealthiest Americans will pay back (taxes) the handouts but there is one danger being overlooked.
Media “talking heads” are distracting people from the real issue by scaring people into believing the U.S. will spend so much that they will never be able to pay it back. They cite debt to GDP ratios as evidence.
However, the Oracle of Omaha, Warren Buffett, shed light on the real repercussions of continue government spending.
In his most recent address to Berkshire investors he explained why the U.S. will never default on its debt obligations:
Number one, the U.S. government only issues debt in its own currency.
Number two, the U.S. owns the printing press to pay it back.
Therefore, Buffett concludes, the real danger is not default but inflation.
And this means that ALL Americans will be repaying the debt, not just high-income wealthy Americans. However, rising taxes can’t be far away, so beware high-income and wealthy.
While you have an investment portfolio you really need to ask yourself whether or not you have an income plan, tax plan, AND inflation protection plan.
Not sure? You’re not alone!
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“I have a diversified retirement plan: sometimes I wish for money, sometimes I hope for money, sometimes I pray for money.”
―Randy Glasbergen comic in Retire Abundantly