Buffett Loads Up on Debt Ahead of Inflation - by Forrest Jones
Warren Buffet is buying more corporate and foreign-government bonds and less stock these days, a possible sign that he is concerned about rising U.S. inflation. Buffett warned on inflation earlier this year. The explosive rise of the U.S. budget deficit and debt burden will lead to serious inflation down the road, Buffett told CNBC in early May. Buffett warned that U.S. debt as a ratio of GDP might surpass 80 percent, unless there are significant spending cuts or tax increases. “A country that continuously expands its debt as a percentage of GDP and raises much of the money abroad to finance that, at some point, it’s going to inflate its way out of the burden of that debt,” Buffett said.
No comments:
Post a Comment