Buffett answers this in a previous paragraph about BNSF. BNSF has debt but they also have cash generation even in times of recession. This is really important. If you are unable to generate cash during recession and you have a ton of debt, you are dead.
A similar analogy applies to US. During recession, they can print money and generate cash. US will never default on their debt, or the probability of them defaulting is almost 0, hence the coveted AAA rating. Granted, the value of that printed money decreases right away, but eventually the value will stabilize w.r.t all other currencies and a stable store such as gold. Also note that the combined household wealth in US is nearing $100 trillion. That should count for something.
It's ok to have debt, if you have significant cash flow to cover your debt eventually, even in times of recession. Apple follows a similar philosophy. They raise debt for their share buybacks and dividends, even though they are sitting on a cash pile.
The US Government seems to have begun a habit of launching investigations of credit agencies that downgrade its credit rating. It's happened to S&P and to Egan-Jones.
You'd be interested to know that the US federal govt. does infact NOT have a AAA credit rating (A couple states in US along with Microsoft and JnJ are the only ones with a AAA rating at the moment).
Buffett answers this in a previous paragraph about BNSF. BNSF has debt but they also have cash generation even in times of recession. This is really important. If you are unable to generate cash during recession and you have a ton of debt, you are dead.
A similar analogy applies to US. During recession, they can print money and generate cash. US will never default on their debt, or the probability of them defaulting is almost 0, hence the coveted AAA rating. Granted, the value of that printed money decreases right away, but eventually the value will stabilize w.r.t all other currencies and a stable store such as gold. Also note that the combined household wealth in US is nearing $100 trillion. That should count for something.
It's ok to have debt, if you have significant cash flow to cover your debt eventually, even in times of recession. Apple follows a similar philosophy. They raise debt for their share buybacks and dividends, even though they are sitting on a cash pile.