Has Buffy the Bozo Been Reading My Blog? Buffett Predicts Inflation—Bernanke Does Not.
Originally From 5.05.2009
If you watch carefully and listen to people natter about themselves you can frequently construct a caricature of some interesting outer shell this person might possess and, in the case of Warren Buffett, this apparition materializes to be a piece of moldy cheese with torturous caverns that contain forbidden cashes of truth. The object has an interesting glittering surface patina on the exterior with a lot of hidden rot on the inside. Buffett is known as a slick and far-seeing investor who made billions with his investments. He is actually an inside influence peddler who made a vast fortune with privileged information and intimidation of those with lesser finance muscle although his public advice, egocentric posturing and grand self aggrandizing performances and ostensive “wise counsel” defiantly omit basic facts about finance and economics. He now confesses that massive government spending of the O’Bozo variety will sink us in inflation. We already knew that. Where was his wise counsel before all this?
We should live in a world where, like physics, some reasonable laws are known to govern many of our interactions and economics is clearly one of them. The elementary tenets of capitalism are well known since ancient times and the salient fact that massive spending by governments lead to inflation is obvious. Such warnings are common such as outlined in the book Money Mischief by Milton Friedman published some 20 years ago. But, there are economic ‘experts’ and investment ‘oracles’ like Buffett who criticize much about our economy [mostly for political reasons] and Republicans in particular yet seem to get sweetheart deals with preferred stocks in companies like Goldman Sachs , Dow Chemical, Rohm & Haas and wallow unobserved in other deals that the public is not privileged to participate in.  Warren relishes his perch on Olympus as the Sage of Omaha and boasted that his tax rate was only 19% in federal taxes for 2006. While posing as an investment guru he taught  this. He and many other Democrats supported the massive Obama spending follies that will surely sink our economy with silence about the cliff we are approaching. His politics is more important than our economy although he wants to make money from the current chaos.
Buffett own words on inflation:
“The arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislatures. The inflation tax has a fantastic ability to simply consume capital. It makes no difference to a widow with her savings in a 5 percent passbook account whether she pays 100 percent income tax on her interest income during a period of zero inflation, or pays no income taxes during years of 5 percent inflation.”
He hates gold like Keynes, but current gold spot prices tell us that an ounce of gold sold for $19 in 1805, about the same price in 1905 and after FDR costs $900 per ounce. So, we get an O’Bozo Tax and an Inflation Tax combined in one neat political bundle of ‘change.‘
Facts from yesterday:
“A country that continuously expands its debt as a percentage of
and raises much of the money abroad to finance that, at some point, it’s going
to inflate its way out of the burden of that debt,” Buffett said.
“Experience proves that, he points out.”
“Every country that has denominated its debt in its own currency and has found itself with uncomfortable amounts of debt relative to the rest of the world, in the end they inflate,” Buffett explains.
“That becomes a tax on everybody that has fixed dollar investments.”--Buffett Sees Massive Inflation to Handle Staggering Debt.
Monday, May 4, 2009 By: Dan Weil
A translation: This means your annuities and pensions will become worthless. Your long term CDs and bonds will crumble away. High taxation in an inflationary era will mean a transfer of wealth to the government, the least adept entity to handle any social or financial problem in my view. Has anybody noticed the 30-year Treasury bond soared to 4% from 3%. It is going much higher.
The Real Buffy the Bozo:
Here we have a sage that omits predictable terminal economic and financial events while reaping applause from his subjects and big profits from troubled corporations. He peddles his trust like a
hooker. He can see the pit ahead and yet drives us into the depths with his
positive blather about Obama and his taxes. His omission of such basic economic
fundamentals in finance while offering himself as an expert and opening his
Oracle for the unwashed masses is deliberate and criminal. He is some kind of
self-styled philanthrocapitalist—what ever that means. Oh, let’s listen to
Warren Buffett—he is so successful and wonderful and egalitarian. He didn’t
mention any inflation. We can trust him. North Beach
His lust for money is illustrated in this quote:
“I’ll tell you why I like the cigarette business. It costs a penny to make. Sell it for a dollar. It’s addictive. And there’s fantastic brand loyalty.”
This reads better as:
I’ll tell you why I like politics. It costs a penny to make a tax bill that swells into a dollar, then a million, then a billion, then a few trillion. And there’s fantastic brand loyalty from the low-class voters who get paid for their votes. Just keep the welfare payments high and the jail terms light. It’s addictive.--rycK
I hate to be one of the persons to say: “I told you so!” but this was predictable. I have several blogs in this point in the references below.
There is no way to recover from this massive debt but to print more money, probably default on some bonds here and there as O’Bozo wants secured bondholders to do to save the UAW at Chrysler and other instances. Our currency might collapse.
We will test the luster of gold again and very soon as our currency becomes worthless. The government will rush to limit ownership of gold if they can.
A quarter hour ago one of the case stooges, Federal Reserve Chairman Ben Bernanke told Congress this about inflation:
“However, he added that even after the recovery begins, "the rate of growth of real economic activity is likely to remain below its longer-run potential for a while."
“That will leave slack in the economy, keeping inflation low, which in turn suggests that the central bank will keep interest rates low for some time”-- Bernanke says U.S. recovery ahead, housing near bottom.”
If Bernanke knows, and he must, that massive spending is inflationary then how does he know the inflation and interest rates will both be low?? These policy vectors generally run in opposite financial directions. He is either lying or has some ‘secret ‘ plan to claw back the Fed money from the banks at propitious moment or, more likely, he is just stooge parroting the O’Bozo political line about spending and that is not a problem.
What is slack? Is this a mental disorder or a physical ailment such as slack jawedness? Did Buffett give us some ‘slack’ when he held back on the impending massive inflationary pressures by his silence? I will cut Bernanke some slack and suggest is just a lying stooge thus encompassing both ends of the argument. This slack appears to be some kind of Neo-Marxist cramdown. We are going to pay big time for all this. Those who wanted ‘change’ are going to get a bundle.
Where do we get these fools?
 Friedman Predicts the Destruction of the Dollar. The late, great Milton Friedman in his classic book prophetically revealed how Obama's reckless monetary policies will cause hyperinflation and destroy our nation https://www.newsmaxstore.com/nm_mag/free_mischief.cfm
 Buffett Sees Massive Inflation to Handle Staggering Debt.
By: Dan Weil http://moneynews.newsmax.com/headlines/warren_buffett/2009/05/04/210480.html?s=al&promo_code=7F1D-1
 ^ Burrough, Bryan; Helyar, John (1990). Barbarians at the Gate: The Fall of RJR Nabisco.
: Harper & Row. ISBN 0-060-16172-8. New York
 Oh, that was hyperbole. I really don’t. I like to ridicule liars, incompetents and people who peddle half truths to trusting citizens. Here are some of my blog views on this point:
The Shrinking Capital Base and Our Very Grim Future.
Our Choice Now: Cut Expenses or Go Down the Road to Financial Oblivion.
Our Economy is Crashing as the Liberals Celebrate. Print Money and Increase Government!!
The Babbling Brooks of the
NYT Babbles Blunders into a Financial Reality Zone.http://rycksrationalizations.blogtownhall.com/2009/02/10/the_babbling_brooks_of_the_nyt_babbles_blunders_into_a_financial_reality_zone.thtml
Protectionism and the Beginning of the End for the World Economic System Explained.
Battling Nostrums at The
Herbert and Krugman Argue at Cross Purposes on How to Bankrupt the Treasury. http://rycksrationalizations.blogtownhall.com/2009/02/03/battling_nostrums_at_the_new_york_herbert_and_krugman_argue_at_cross_purposes_on_how_to_bankrupt_the_treasury.thtml New York
 Bernanke says
recovery ahead, housing near bottom.” U.S. Tue May 5, 2009 11:32am EDT