Warren Buffett says inflation in the U.S. is “exploding” and he urged the Federal Reserve not to signal in any way that controlling prices is a secondary goal to encouraging economic growth.
“Inflation is really picking up. Whether it's steel or oil, we see it everyplace,” Buffett said of rising prices. [My comment: We at bhc investment have been predicting a US Recession back it September 2007 and have been saying that this recession will be led by inflationary pressures [2].]
Buffett made his comments in a live interview with Becky Quick on CNBC's Power Lunch. He spoke ahead of a charity lunch he is hosting in New York City.
While Buffett stressed that the Fed needs to control inflation, he also said the central bank should also be concerned about slowing economic growth, and said he's glad he doesn't have Chairman Ben Bernanke's job.
Pressed by Becky about what he would do if he were Fed chairman, Buffett joked that he'd “resign.” [My comment: Ha ha ha... [6]]
Buffett told Becky that from a consumer's perspective, the economy's weakening is getting worse.
He's been saying for several months that the U.S. is effectively in a recession. [My comment: You will be surprised by how many out there are still scratching their heads on how we actually got here.]
Buffett dismissed suggestions that “speculators” are responsible for the high price of oil, saying energy prices are being driven solely by supply and demand. [My comment: This is consistent with the view by Boone Pickens [3] as well as our official position [4, 5]. However, the media and mainstream economists will not want you to believe this. They desperately need a scapegoat, and speculators are the easy targets.]
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References:
- Warren Buffett Tells CNBC U.S. Inflation is "Exploding"
- To Zoe_H
- Boone is Now with Boon, Part III
- Some Humble Suggestions, Part IV
- Some Humble Suggestions, Part V
- Why I Want to Abolish the Fed too!
Related posts:
- What Warren thinks...
- Buffett: "Recession will be Longer and Deeper"
- George Soros on Financial Crisis, Commodities, China
- Soros: Things will get Worse before They Improve
- Soros: CDS the Next Shoes to Drop
- Soros:'... Probably not... the Final Bottom'
- George Soros: The Worst Market Crisis in 60 Years
- Soros: End of Dollar as World's Reserve Currency
- Soros: The Current Crisis is the 'Worst in 60 Years'
- A Sobering 12-Step Scenario
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