Monday, May 6, 2013

Warren Buffett Takes His Annual Swipe at Gold

Warren Buffett's Berkshire Hatahway had its annual shareholders meeting in Omaha, Nebraska, this weekend. This means that it was time for his annual diss of gold.

“If it went to $800, I wouldn’t be a buyer,” Buffett, the chairman and chief executive officer of Berkshire Hathaway, told reporters in Omaha, Nebraska, on May 2 reports Bloomberg News. “It just sits there, and you hope somebody pays you more for it.”

Which once again shows that just because you are rich doesn't mean you understand basic economics. It's the same as Michael Jordan being a great athlete with great jumping skills. Would you want him to operate on your damaged knee?

Buffett clearly has no understanding  of the value of a medium of exchange in society. But it's not as though Buffett's father and Mark Thornton haven't tried helping in understand.

 As a true crony, it got even worse later at the shareholder meeting. He cheered on the Fed (via MarketWatch):
On the Federal Reserve’s easy monetary policy, Buffett said he has complete faith in Federal Reserve Chairman Ben Bernanke. 
“We have benefited significantly and the country has benefited significantly from what the Fed has done,” Buffett said, calling it a “very smart policy.”
For a guy that isn't big on things that just "sit there," he sure has a fondness for Bernanke slapping green ink on paper.

But, he knows the end is near, concerning the necessity that the Fed will have to raise interest rates at some point, he said:
 It’s likely to be the shot heard round the world.

Bizarrely, Buffett said earlier this morning on CNBC that leverage is like "heroin" and "cat nip" to people in finance. They're tempted to use it too much.

Yet, he cheers on the creator of most of the leverage, the Fed.

1 comment:

  1. Warren Buffett is part of the oligarchy.

    The oligarchy has control of the US. Media kisses his ass and Warren in many respects, is sort of the face of Capitalism. This guy has an ego the size of a barn- blown up by his investing success.

    At the end of the day, he is just an old bastard that got lucky. So yea, he kisses Bernankes ass. He has been the primary beneficiary of Bernanke's policies and printing. I'd be happy too.