TRANSCRIPT & VIDEO: Ask Warren Buffett on CNBC's Squawk Box - Part 2
BECKY: We are back with Warren Buffett. We've got a lot of viewer e-mails that have been coming in. We've got thousands of them, so we're going to get to those right away. But, Warren, you had one thing you wanted to clarify?
BUFFETT: Well, I was going to mention to Joe that you've heard this comment recently from some Democrats recently that a `crisis is a terrible thing to waste.'
BUFFETT: Now, just rephrase that and since it's, in my view, it's an economic war, and--I don't think anybody on December 7th would have said a `war is a terrible thing to waste, and therefore we're going to try and ram through a whole bunch of things and--but we expect to--expect the other party to unite behind us on the--on the big problem.' It's just a mistake, I think, when you've got one overriding objective, to try and muddle it up with a bunch of other things.
BECKY: OK, so that's your point...
BECKY: ...is that on both sides people should be coming back in and...
BUFFETT: Absolutely. We need them. We need them.
BECKY: OK. Let's get to some of these viewer e-mails, because we do have a lot of them that have come in. Steve from Minneapolis writes in, and his question is, "Do you believe that the following statement is still true today? `So far as I can discover, paper money systems have always wound up with collapse and economic chaos.'" By the way, that was a statement from Congressman Howard Buffett, your father.
BUFFETT: Sounds like my dad, yeah.
BUFFETT: I heard that every night at the dinner table for a long time. Well, I would say this. It's going to be a very, very rare paper money that appreciates over time. I mean, the--and we are doing things now that are potentially very inflationary. I mean, that--it's the nature of fighting the war we're in. And, incidentally, when we fought World War II it was very, very inflationary, and we--and we took all kinds of activities to try and minimize that impact. But, you know, if you--if you look at this bill that--and I didn't know Steve was going to ask you that. But, you know, on the back it says, "In God we trust," right?
BECKY: Yeah, right.
BUFFETT: And on the front it says, `In the Federal Reserve, we trust,' basically.
BUFFETT: It's a Federal Reserve note. Now, if you go down to the Federal Reserve bank and you say, `I'd like to exchange this for something else,' the nice lady there will say, `Would you--would you like,' what is it? Two 10s or four 5s?