Monday, May 4, 2020

Warren Buffett Says Fed's Jerome Powell Belongs on a 'Pedestal'

Warren Buffett
Well, here's proof that just because you know how to make a multi-billion dollars, it doesn't mean you know a damn thing about the economy.

During Saturday's Berkshire Hathaway annual meeting (held by video conference call), multi-billionaire Warren Buffett said that Federal Reserve Board chairman Jay Powell belongs on the same 'pedestal' as early 1980s Fed chairman Paul Volcker.

Of course, Volcker did slay out of control money printing for a while so he deserves some credit for that but Powell is running the Fed money printing presses right now as if he was a naked homeless person on the streets of San Francisco's Tenderloin district after getting a bad fix.

Powell is driving us toward an acceleration in price inflation that we haven't seen in decades.

And Buffett is cheering this on. He understands about as much about economics as AOC.

And he has no excuse, his father, a sound money man, tried to introduce Buffett to the writings of Murray Rothbard.

-RW


2 comments:

  1. "Of course, Volcker did slay out of control money printing for a while so he deserves some credit for that..."

    He did it by cutting the growth in the M$ over a six month period rather than through a gradual reduction over a 3+ year period as implied in a "Gentleman's Agreement" with Treasury, thus guaranteeing the severe downturn that inevitably follows such a move. See: P C Roberts, _The Supply Side Revolution_. Volcker gets credit for causing massive dislocations in the Economy. Same as it ever was.

    ReplyDelete
  2. I have always thought that "Tall Paul" Volcker deserved to be placed on that pedestal. My opinion is that he approximated what the real market value of the interest rate would be and setting the Fed Funds rate to that value. Thus "emulating" a true market set interest rate.
    He dun good. Set the economy up for a whoopie boom 'til 2000. 1987 was a hiccup.

    ReplyDelete