Warren Buffett warned Congress that failing to raise the debt ceiling would be an epic mistake - and called for the limit to be eliminated

• Warren Buffett called for the US debt ceiling to be eliminated in 2011.
• The investor warned Congress that not lifting the borrowing limit would be a huge mistake.
• Lawmakers are clashing yet again over the ceiling, underscoring Buffett's concerns.

Warren Buffett warned that failing to raise the US debt ceiling would "probably be the most asinine act that Congress has ever performed." He also urged legislators to get rid of the limit on how much the government can borrow to meet its existing obligations.

The famed investor and Berkshire Hathaway CEO made those comments a decade ago, but they're just as relevant today. Democrats and Republicans are squabbling over lifting the ceiling once again, even with the Treasury set to run out of cash by October 18. If the US were to default on its debt, it would send shockwaves through financial markets and the global economy.

President Joe Biden blasted Republicans' obstructive behavior as "hypocritical, dangerous, and disgraceful" this week. Meanwhile, Senate Minority Leader Mitch McConnell has ruled out bipartisan support to raise the ceiling, arguing it would help Biden pass his sprawling infrastructure bill.

Buffett, speaking at Berkshire's annual shareholder meeting in 2011, underlined the stupidity of the legislative standoff at that time. He pointed to Indiana lawmakers in 1897 proposing to change the value of pi to exactly three for simplicity's sake.

"That's the only bill I can think of that would give competition to a refusal to raise the debt ceiling," Buffett said.

The Berkshire chief said it was a mistake to have a debt ceiling when the US economy keeps growing, expanding its debt capacity as a result. While he doesn't necessarily support increasing the national debt as a percentage of GDP, he's tired of the politics and brinksmanship around the borrowing limit, he continued.

"These games get played, and all the time that gets wasted, and the number of silly statements you hear," he said. "It just seems such a waste of time for a country that's got a lot of things to do."

"I'd love to see them eliminate the idea, because it results in these periodic stalemates where everybody uses it for posturing purposes," he added.

Buffett asserted the US wouldn't face a debt crisis as long as it issues debt in its own currency. He highlighted inflation and excessive printing of money as the only real risks of government borrowing.

Charlie Munger, Buffett's business partner and Berkshire's vice-chairman, also bemoaned the debt-ceiling dispute at the 2011 meeting.

"It seems to me that both parties are trying to compete to see who can be the most stupid, and they keep topping one another," he said.