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Warren Buffett: Failure to Raise Debt Limit Would Be 'Most Asinine Act' Ever By Congress

Shareholders Meeting 2011: Debt Limit
Shareholders Meeting 2011: Debt Limit

Warren Buffett says if Congress fails to raise the U.S. debt limit, it would be its "most asinine act" ever.

But he told shareholders today there's "no chance" lawmakers will fail to do so, despite "waste of time" debates on Capitol Hill.

While Buffett doesn't want the nation to keep increasing its debt relative to GDP, he says there's shouldn't be a legislated debt limit to begin with, because circumstances change.

Buffett says the U.S. will not "have a debt crisis of any kind as long as we keep issuing our notes in our own currency." Inflation resulting from a "printing press" approach, however, is a serious threat.

Warren Buffett on the exhibition hall floor at the Berkshire Hathaway shareholders meeting in Omaha, April 30, 2011
Lacy O'Toole/CNBC
Warren Buffett on the exhibition hall floor at the Berkshire Hathaway shareholders meeting in Omaha, April 30, 2011

Charlie Munger's view: the political parties are competing with each other to see who can be the most stupid, and they keep topping themselves.

If the debt limit is not raised, the government would run out of money, forcing a significant shutdown.

The current $14.3 trillion limit expires on May 16, although the administration has said it will be able to juggle some funds so that a shutdown would not happen immediately.

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