Warren Buffett is upset about US trade deficits, with good reason. He is hitting the really weak point in the economy – the trigger for the rest of the issues.
Our national debt does not bother me. Our public debt is not at a crazy level,” he said.
He’s only indirectly not bothered by it, knowing full and well that the trade deficit means value add is flowing into the country, not leaving it. If it was the other way around, the massive public debt (and extraordinary personal debt levels) would not exist in the first place.
Everyone at every level is consuming more than they produce – in the federal government, at the state levels, and via everyone’s home equity and credit card balance. Mr. Buffett is merely telling everyone where to focus their attention, on in’s versus out’s, before shit hits the fan.