Destruction of the Dollar?

" And -- America buried in debt and no into the spending spree in -- legendary businessman Warren Buffett is sounding an alarm the politicians in Washington that they need to hear. Now in a New York Times Op Ed Tuesday Buffett wrote quote. We do not want our country to evolve into the banana republic economy congress must end the rise in the debt to GDP ratio."

" And keep our growth and obligations in line with our growth and -- sources."

" members of congress are you listening. And joining me now with reaction to the story and much more Stuart -- our friends from the Fox Business -- to see you thank you thank -- Warren Buffett -- Obama supporter asks what does this mean this is up."

" Clear -- warning to President Obama watch out. You cannot continue to spend. Borrow and print money the way you off and he can do you tell us into as he says -- banana republic. This is very important because is Warren Buffett Pam this is the man. That perhaps the best reputation as a money manager and best of anybody in America and all of the support of the president during his campaign. He approves of all the -- on as president and now. He -- says wait a minute wait a minute you've got to think about retreating from all of this spending how how you how. This is -- it to bits of news came out today that really scared me on top of all the bad economic news that we got last week that -- ask -- about a second. Max Baucus has Social Security could face the fall within two years he said that yesterday. And we have hundreds of dealers have dumped the cash for clunkers program that I couldn't pay eight point how does it impact. Well I don't know how it directly impacts Social Security all the cash from cloned because deal but this is -- could have caught cold to stop retreating from all of the spending. My position would be he cannot retreat. This president this administration cannot retreat from what's already in place you can't back off from the stimulus program. It's implemented is going to be implemented he can't back off on the record budget the 410 billion dollars supplemental spending program. You can't back off from cap and trade you're gonna have something to -- to those farmers in Copenhagen in December. But you cannot back away from the health care reform of a trillion dollars over ten years but -- unwritten thing in the Warren Buffett pace was. Gotta be careful with this health reform for -- can't afford it what do you what do you make of economists have been reading this week that they think we're about to hit a double dip. Inflation here what do you think of a guy like -- this new -- you. NYU professor who predicted all this thing called doctor doom. But what do you think of their predictions that this is all unsustainable now Warren Buffett joining the chorus. -- does does this impact Obama does does this impact or effect him anyway should. It shouldn't let it simply takes credibility away from the economic program that he's -- in place there are two predictions here that -- dealing with number 10 Warren Buffett predicting. Really serious inflation down the road if we don't rein in the spending and printing and a -- to a double dip towards recession. We're out of the fullest but. Bad part of the recession may be a tiny bit of growth by the end of this year. The prediction is from many people watch out we go downhill again after a little bit of growth that look at the latest headlines -- home prices decline retail sales are down. Revenue to the government's down 18%. Last week the numbers came out the deficit quadrupled. In one year under Barack Obama. Now foreclosures are up the cost of government day is August 12 -- Stewart which means everyone works to -- their cost of of government. Two thirds of the year -- you've got a triple whammy which is not really being faced up to by the Obama economic program. Number -- unemployment is still rising employers -- still firing number two consumers on not buying. You're about to -- probably the worst in a decade back to school spending season. At number three. Full closures -- going through the roof. 360000. -- notices went out in July alone. These challenges to the president's economic program which he's gonna find very difficult to address what do you make of this -- on the front page USA today earlier this week. 57%. Don't see the stimulus is working right. That's Americans that they lost confidence I think it's like 72% to want their money back -- the -- not looking you don't spend it's because it's not doing any good that we want our tax money back. Yet this is a different it -- you. Wait people are beginning to look for the Obama presidency and his economic policy the wheels are beginning to come off there's a lack of credibility that. When when Walter Cronkite. To a negative on Vietnam. Lyndon Johnson was watching and he said I just lost America. When Warren -- Warren Buffett when he turns negative on Obama's economic program and it spending. That President Obama loses some legitimacy and credibility one of the things -- line has been -- And I way to correct me if I'm wrong is that this is all unsustainable all the things you mentioned about. You know the stimulus the -- that the that the the earmarks healthcare everything combined what is not a sustainable is this deficit now it's what does it took may be close to two trillion dollars this year they're interesting they are adjusting it down -- Okay but how quick it is a little point seven trillion accumulated over the years. Rising at a least a trillion trillion a half maybe two trillion a year now. The interest on that -- is already -- Half a trillion dollars per year. That is not sustainable Stewart I've taken half of the money that I had in the stock market which was not a big part of my portfolio out of the market I wanna get out totally. And I say that the people -- say well historically over the years you gonna do you gonna be better off in the long term you're fairly young you should keep it there what you gonna do. If you've taken half you money -- it gonna take it all up where you gonna go well the point is well US in the paper well actually yes it gives you a lot of -- you know -- the economy but we can predict inflation weakened predicted. Interest rates are gonna go up but I don't see any way out of the unemployment numbers. Because I don't see any any incentive for capitalism anymore. A lot of people think probably echoes of the nineteen -- its -- stock market -- made the loss for the economy went straight down for most of that decade. All the people seem some how -- you. No not I do in terms of the market action but I don't believe -- headed for a depression. Double good double dip first double dip recession I think -- looks wideout that you could see that but but let's not fool around with the -- depression. Okay -- always good to -- I -- sure appreciate it and let."