LIVE from Sun Valley, Warren Buffett is on CNBC.

On the debt ceiling he has a radical proposal: Get patriotic corporations to prepay taxes to help avoid a default.

He also says: "I would go after the very rich."

More on the debt crisis

The world will regard us differently if we don't pay our bills, the battle about the debt ceiling is "silly." We shouldn't be playing Russian Roulette with the debt ceiling. Lack of debt ceiling could result in enormous disruption.

Tax law in the United States has not been shaped by logic. The Simpson Bowles report was a good start, but it was ignored. We need to go further. There's always been a class struggle in the U.S, and it's been through the tax system... It's pretty hard to get it corrected without having a massive overhaul.

We are capable of having an equitable tax system.

On NetJets and Obama's corporate jet jabs

I have one eighth of a plane that I use for personal use... I don't get a dime off, I don't get to charge the loss. That's a million dollars. I have a plane for work... The truth is a year ago, that for capital investment, there's 100% write-off in the first year. (On whether it was just Obama using political theater?) The capital rate gains at 15%... I don't see where a business aircraft is different from a locomotive.

On Europe

The European situation is not solved... They've got a lot of work to do. When you have 17 countries that all have the same currency, and the yields on their bonds are all different, the situation is not solved. It's like 17 people holding hands and one guy starts walking towards the end of the cliff, and suddenly there's 12 people left and you have to start thinking -- do I want to be holding hands with this group?

Contagion is a real problem.

Says he sold out of European bonds when he saw this crisis coming.

On Jobs

Figures are getting better, we have more people working for Berkshire than we did 2 months ago, four months ago. Employment will improve dramatically when construction comes back.

On housing situation

I personally think the mortgage terms you can get now, you might not see these terms in a few years... In most parts of the country if I were looking to buy a house and I had a job, I would buy a house in a minute and get a 30-year loan.

On Pimco's "new normal"

I think when construction comes back, we may see a spurt. There's always a "new normal," the world is evolving. The luckiest person around is the baby that was born in the United States today. The world gets better. If there is a "new normal" it will be a higher normal in terms of the average person and their standard of living.

When does it make sense to bet against America? We've come through a massive financial and economic panic. To expect to rebuild overnight is unrealistic.

The dollar is going to get worth less over time. We will have black swans, but we'll overcome then. The average person lives 6x better than when I was born. We've got more opportunity now than we've ever had.

On stimulus

Removing stimulus too fast could be a negative

Miscellaneous Buffetry

Anything that ends with the word Twitter, my mind shuts off -- (in response to Becky wanting to ask some questions posed by the Twitosphere.)