Sunday, August 7, 2011

Quadruple A

Warren Buffett is at it again. He has now declared that Standard and Poor was "wrong" to lower America's debt rating from AAA to AA+ and that it should be AAAA. This bizzare statement was offered to Bloomberg in an interview yesterday.

Buffett has famously urged Congress to raise tax rates, knowing full well that he will never pay them. Buffett, like other rich folks, can shift his assets around to avoid the tax man, so he could care less what the tax rates are.

Buffett wants everyone to see him as a modest, unassuming man who did well. That, of course, is nonsense. The son of a well-to-do Nebraska Senator (Republican, at that), Buffett has always had it pretty easy. He is definitely a smart guy, but he lives like a potentate, flying around is his private jet, hobnobbing with the wealthy and the far left as he issues absurd statements like his "AAAA" statement today.

No amount of obfuscation by Buffett hides the cold hard facts. The rating agencies are right on. US debt is in deep trouble. The US has $ 66 Trillion in unfunded liabilities in its entitlement programs. Buffett thinks that is okay and merits a "AAAA" rating. S&P doesn't agree. S&P is right.

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