A Quote by Warren Buffett
That's been lost. It's a huge problem. What you have is you have the major institutions of the world all wanting to deleverage. They want to take down their assets and liabilities. What seemed so easy to borrow against a year ago now looks like rat poison to them. So they're trying to deleverage. There is only one institution in the world that can leverage up in a way that's all a countervailing force to that, and that's the United States Treasury.
Related Quotes
I think it's been, you know, kind of like a tragic play to this point. But at this point, I think it's clear, and will be clear to the majority of the Congress. I think it's clear to the American people that there is only one countervailing force to a world where financial institutions are trying to sell instruments every day and where credit has dried up, and that's the United States Treasury.
I believe the number is 70% of the world's refugees since World War II have been taken in by the United States. Every year, year in, year out, the United States admits more legal immigrants than the rest of the world combined. The United States has granted amnesty before to three million illegals and appears prepared to do it again.
We borrow 40 cents out of every dollar that we spend. We borrow most of it from countries like China. They have become major creditors of the United States and have more power over our economy than we want them to. So dealing with this is not only the right thing economically, it's certainly right from a moral viewpoint.
[The U.S. Treasury] can borrow basically unlimited amounts. They can stay there for years and years. These assets will be worth more money over time. So when Merrill Lynch sells a bunch of mortgage-related assets at 22 cents on the dollar like they did a month or so ago, the buyer goes - is going to make money, and he's going to make a lot more money if it happens to be an institution like the U.S. government which has very, very cheap borrowing costs.
As you know, the United States has been a net debtor to the world each year since 1976, I believe. We've put a huge amount of dollars out into the world and those dollars have to be recycled in some way.
If a financial institution has business operations in the United States, hires people in the United States, if they are clogged with illiquid assets, they have the same impact on the American people as any other institution.
Most of the world's major waterways have been diverted or dammed or otherwise manipulated - in the United States, only two per cent of rivers run unimpeded - and people now use half the world's readily accessible freshwater runoff.
The ideals and the values of the United States inspired the entire world. I don't think any of us can say that our standing in the world now, the way children around the world look at the United States, is the same. And part of what we need to do is to send a message to the world that we are going to invest in issues like education, we are going to invest in issues that relate to how ordinary people are able to live out their dreams. And that is something that I'm going to be committed to as president of the United States.
In the Islamic world, the U.S. is seen in two quite different ways. One view recognizes what an extraordinary country the U.S. is.The other view is of the official United States, the United States of armies and interventions. The United States that in 1953 overthrew the nationalist government of Mossadegh in Iran and brought back the shah. The United States that has been involved first in the Gulf War and then in the tremendously damaging sanctions against Iraqi civilians. The United States that is the supporter of Israel against the Palestinians.
When you look at the world, everyone in the world who cares about his or her family wants to have a major portion of their assets in the United States because we are the growth country and the freedom loving country.
Banks don't want certain asset classes, and that's created opportunities for private equity, hedge funds, Silicon Valley. In this case I think he was referring to some of the European banks shedding assets, and the big buyers are probably not going to be big American banks. Someone like Blackstone may have a very good chance to buy those assets, leverage them, borrow up a little bit, and do something good there.
Don't forget Drive-By Media think that most of the so-called victims in the world are in that state because the United States has not been compassionate or fair enough when there have been Republican presidents or Republican Congresses. They don't see the United States as a way out, as a way up. They see the United States as a collection pool, if you will.
The problem is that you're creating a system of bubble finance where interest rates are so low that people can speculate. An asset value goes up. You put it up as collateral. You borrow against it. You buy more of the asset. You then take the rising asset. You borrow against it again. This is the nature of what's going on in the world. This isn't an excess of real savings. This is an excess of artificial credit that's being fueled by all the central banks.
Beware leverage in all its forms. Borrowers - individual, corporate, or government - should always match fund their liabilities against the duration of their assets. Borrowers must always remember that capital markets can be extremely fickle, and that it is never safe to assume a maturing loan can be rolled over. Even if you are unleveraged, the leverage employed by others can drive dramatic price and valuation swings; sudden unavailability of leverage in the economy may trigger an economic downturn.
The United States initially poured money and arms into Pakistan in the hope of building a major fighting force that could assist in defending Asia against communism. Pakistan repeatedly failed to live up to its promises to provide troops for any of the wars the United States fought against communist forces, instead using American weapons in its wars with India.
There is a limit to how much the United States Treasury can borrow.
Related Authors
Bill Gates Quotes
American
Businessman
Charlie Munger Quotes
American
Businessman
Dieter F. Uchtdorf Quotes
German
Businessman
Elon Musk Quotes
South African
Businessman
Henry Ford Quotes
American
Businessman
Jim Rohn Quotes
American
Businessman
Joseph B. Wirthlin Quotes
American
Businessman
Mark Cuban Quotes
American
Businessman
Mark Zuckerberg Quotes
American
Businessman
Peter Drucker Quotes
American
Businessman
Richard Branson Quotes
British
Businessman
Russell Simmons Quotes
American
Businessman
Sam Altman Quotes
American
Businessman
Steve Jobs Quotes
American
Businessman
Tom Peters Quotes
American
Businessman
Walt Disney Quotes
American
Businessman