Warren should've listened to Daddy Buffett
Richard Russell (big snippet)
December 16, 2008 -- Now as the Bernanke-Paulson team
open the monetary flood-gates in their desperate effort to halt
deflation and bring back inflation. Our creditors (i.e. China)
must be getting nervous, and they're beginning to let us know
about it. The problem for our creditors -- the dollar is now
fading rapidly. There's one obvious way to make the dollar more
attractive -- higher interest rates. The choice now -- rising
rates or a declining dollar. What I'm most worried about is the
US dollar losing reserve status. This would mean that our creditors
would refuse to take in more fiat Federal Reserve notes, "money"
that we can print as we want.
You can see it in gold's action.
While almost all other assets are sinking, gold on a year-over
year basis is up 5.6%. So far, this year, gold is up .01%. Nothing
else can match gold's performance. Talk about superior relative
strength, you're seeing it in gold.
Year after year -- This may shock you. What item has closed higher every year since 2000? I'm indebted to my old Manhattan friend, Ron Rosen for this one. Here are the gold closings for the following years:-
Asked price for spot gold as
of yesterday $837.10. So question -- will gold close the year
2008 above its 2007 closing price of $838.00? Guess we're going
to find out at the end of December. Isn't this a fascinating
business? Ya gotta love it.
When it comes to gold, Warren
didn't know what he is talking about. Warren should have listened
to his daddy, who was a confirmed gold-man. The following is
from Google regarding Howard Buffett, Warren's dad --
by Hon. Howard Buffett
"Is there a connection between Human Freedom and A Gold Redeemable Money? At first glance it would seem that money belongs to the world of economics and human freedom to the political sphere.
"But when you recall that one of the first moves by Lenin, Mussolini and Hitler was to outlaw individual ownership of gold, you begin to sense that there may be some connection between money, redeemable in gold, and the rare prize known as human liberty. You see, gold is mobility, gold is a passport to move across borders.
"Also, when you find that Lenin declared and demonstrated that a sure way to overturn the existing social order and bring about communism was by printing press paper money, then again you are impressed with the possibility of a relationship between a gold-backed money and human freedom.
"In that case then certainly you and I as Americans should know the connection. We must find it even if money is a difficult and tricky subject. I suppose that if most people were asked for their views on money the almost universal answer would be that they didn't have enough of it.
"In a free country the monetary unit rests upon a fixed foundation of gold or gold and silver independent of the ruling politicians. Our dollar was that kind of money before 1933. Under that system paper currency is redeemable for a certain weight of gold, at the free option and choice of the holder of paper money."
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