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Warren Buffett, Government Propagandist
Karen De Coster
Lew Rockwell.com
Thursday, Oct 23, 2008
“Believing that fundamental conditions of the country are sound and that there is nothing in the business situation to warrant the destruction of values that has taken place on the exchanges during the past week, my son and I have for some days been purchasing sound common stocks”
~ John D. Rockefeller, October 29th 1929.
I’ll tell you what the real purpose is behind Warren Buffet’s recent column in the New York Times.
Buffett writes, “Buy American. I Am.” He goes on to say that Americans should not panic and flee equities, but instead, they should buy them. That’s right – Warren Buffett wants people to buy equity stakes in American companies.
Buffett is doing the government’s dirty work in trying to calm the fears of the masses. That was the whole purpose of his column. He agreed to become an instrument for the establishment, and when Buffett speaks, people tend to listen. The timing was perfectly executed. As the markets splintered and rocked the world of regular people everywhere, they were exiting their speculative adventures in equities and escaping to safe havens in their 401k accounts. And here was the respected, industrious, sensible folk hero, telling everyone that the fear felt by others should be a sign to us, and let that dictate our speculative strategy.
(Article continues below)
Warren Buffett is an admired man. He is admired, even by the middle and lower classes, for his frugality, wisdom, no-nonsense delivery, plain-folk personality, and yes, his hard-earned wealth. Readers may know that I deeply respect this man because I reflect on his business acumen frequently. But his latest column puts him in the role of being a propagandist for the government and its bull market-perpetual bubble-sustainable boom doctrine. The government and its Wall Street cronies are big on building “investor confidence” these days, especially when it comes to selling you on the stock market game and the ever-increasing Dow. Warren Buffett is working to convince you, the unsophisticated investor, to have unmitigated confidence in the market so that you will continue to buy and prop up market fantasies, even in a time of rapid decline and volatility. I find his reason for not fearing the equity speculation game to be a bit odd. He says,
But fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.
Essentially, he’s suggesting that the Dow can only move upward – eventually! – but he does not provide any reasonable justification for this belief. He’s careful, here, to not give out strict advice because it makes him uneasy. So he’s telling us that the profits will be there in “5, 10, and 20 years.” Is it 5 or is it 20? Or anything in between? Or more than 20 years? Of course, no one knows, but to middle-class Joes it makes a heck of a difference whether it’s 5, 10, or 20 years, or even at all, because most of us don’t have the cushion to be wrong (and 20 years off the mark), as does Warren Buffett. Twenty years can be almost a half of one’s working life in the middle class, and that kind of time is not available to most people to find out whether or not they won or lost the roll of the dice.
The supermajority of the population cannot ever have an investment strategy like that of Warren Buffett. We can take much (and I do) from his value-investing blueprint and sensible roadmap for avoiding speculative pitfalls while engaging serious investment analysis. But Joe the Plumber and his friends cannot afford to gamble away their financial futures on the hunch that the stock market “can only go up.” On BubbleVision the other day, two desk jockeys also questioned Buffett’s BUY advice – amazing! – and they noted that since he’s working on a much larger scale than the rest of us, how does his top-level recipe for success apply broadly to a populace of terrified people who are losing big on a lifetime accumulation of wealth?
The answer is that it doesn’t apply. That is to say, amateur “investors” (they are really speculators) cannot apply his big-picture advice because every person he speaks to about the “long term” has a unique age, time to retirement, ability to save, and capability to bear risk.
In retrospect, Warren Buffett’s posture on political issues shows us that in spite of being a remarkable value investor, he has sanctioned collectivist state hysteria and policies from climate change to taxes to fiscal policy. In fact, his nod of approval for some of government’s most destructive taxation tactics has clearly distinguished him as an unabashed redistributionist.
Finally, Mr. Buffett presents us with “a little history” when he notes that:
During the Depression, the Dow hit its low, 41, on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin D. Roosevelt took office in March 1933. By that time, the market had already advanced 30 percent.
I’d like to extend that history. The Dow did hit 41 in July 8th, 1932, after plummeting from a high of 381 on September 3rd, 1929. However, the Dow did not get back to 381 until November of 1954, twenty-five years after the peak. But we are supposed to believe that things are different now. The Dow is a predictable and perpetual bull ride. In fact, every so-called expert” in the media has declared that another Great Depression can never occur because, after all, “the fed has our backs.” They have all the right safeguards in place to assure us that such a catastrophe can never happen again.
The Fed has intervened on a massive level not seen since FDR’s New Deal takeover of the economy. They don’t have our backs, they have our balls. Certainly, we have come to expect FDR-style fascism on steroids from the ratfinks who have co-opted the ranks of the current regime. On the other hand, Warren Buffett’s unequivocal endorsement of Washington’s ruling class and its scheming agenda to lure the middle and lower classes with the promise of financial bread and circuses is a sign that we must not trust Omaha any more than we do Washington D.C. or Wall Street.
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20 Responses to “Warren Buffett, Government Propagandist”
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October 23rd, 2008 at 6:10 am
Good, well balanced article. He is right! Buffett may be a decent guy, but what is good for the ruling class is not good for the rest of us. At this point, all leaders should be taken with a grain of salt!
October 23rd, 2008 at 6:23 am
After the “planes” hit on 9/11 it was Warren Buffet that W had to talk to first and foremost. Perhaps Warren’s investment strategies were the reason for W taking a sharp left over Missouri. The folks in NYC, D.C. and PA can wait because W had some business in Nebraska? Yeah Buffett is a hell of a decent guy, I sure do trust him.
October 23rd, 2008 at 6:45 am
But there is a major difference between the likes of Buffet and the rest of us — he has loads of money AND insider information. Notice how when everyone else is losing their butts he manages to MAKE a few more billion? Also, he has access to international bank accounts and tax shelters where Joe Average doesn’t. He can also switch his investments to Euros or Rupees of the Pound, etc whenever the need arises but the rest of us are forced into dollars. Believe me, I tried it. When I called my investment company and told them I wanted MY investments in Euros they flat out told me it couldn’t be done. So much for “home of the free.”
October 23rd, 2008 at 6:48 am
Do a Yahoo search for “Wall Street and the Rise of Hitler” by Antony C Sutton.
Chapter 1 is titled “Wall Street Paves the Way for Hitler”. Read on.
And then ask, “What in the this world of “Our’s” is going on?”
October 23rd, 2008 at 8:13 am
Buffet knows nothing!, except, when things are down he buys and when they are up he sells, if/when the latest things blow over he’ll be up again. He sees the big picture from a stock market piont of view AND is able to operate in this way because he’s running his own show.
What most people don’t realise when they invest in regular funds, is that the fund manager in not operating under the same time constraints as Mr Buffet, they have to maximise their portfolio on a daily basis, as a result, if things are going up they are buying, if they are going down they are selling! That’s all, and if they can perform at the same level or better than their peers, who are doing the same thing, then they’ll get their bonuses and make a fortune. You will never hear a financial planner tell you this! EVER! They’ll use obfuscating language, make you feel it’s all mysterious, and sell you the fund which gives them the best kick back… That’s reality!
October 23rd, 2008 at 8:17 am
Buffet was in the control center with Bush after 911. He’s a neo-nazi bastard.
October 23rd, 2008 at 8:21 am
Also, Buffett and Gates moved all of their investments off shore a year ago, with 30% in silver. Now, we are supposedf to believe he ‘changed his mind’…
What he’s trying to do is squeeze the last few drops od water out of the sponge (us) and into the pockets of the bankers. He’s grabbing us by the heels and shaking us upside down for the last of our spare change, before we go offto the FEMA camps.
October 23rd, 2008 at 8:38 am
So where was Warren Buffett the morning of 9/11 and what was he doing?
Mr. Buffett was reportedly at his home in Omaha, Nebraska watching TV when he heard about the terrorist attacks. He was getting ready to host his “last annual golf charity event” which just happened to be at the U.S. Strategic Command headquarters located at Offutt Air Force Base in Omaha. Offutt AFB is, coincidentally, where President G. W. Bush flew to on Air Force One later in the day for “safety.” This early golf charity event hosted by Mr. Buffett was to include celebrities, professional athletes, and a small group of business leaders in which one of these business leaders became a very lucky person.
This very lucky person was Ann Tatlock, the CEO of Fiduciary Trust Co. International. Now what made Mrs. Tatlock such a lucky person for being invited to this charity event that morning? Mrs. Tatlock not only works in the World Trade Center, but her offices were right where Flight 175 crashed into the South WTC Tower. She was escorted by military officers to an officer’s lounge with TV to watch it happen.
October 23rd, 2008 at 3:44 pm
Buffet is an investment genius and a political fiend. The latter more than cancels out the former.
October 23rd, 2008 at 3:56 pm
Buffet played the game well.
But his opinions don’t mean a lick.
All of these successful investors, for their entire lives, have premised their idea on the old saying “markets go up, markets go down”.
The critical flaw, at this point being that, THIS market does NOT go up, UNLESS you instead choose to hyper-inflate the currencies of the world, which they are so far choosing to do.
None of these guys have a clue how deep and demented the derivatives market is. The derivatives will wipe the world out 1,000 times over, there are QUADRILLIONS of dollars of them for Gods sake.
http://www.larouchepac.com/new.....rence.html
October 23rd, 2008 at 5:16 pm
Buffet is contradicting himself, because he previously said “credit derivatives are financial weapons of mass destruction.” I am positive he also means the stock market and the economy is will be destroyed along with the massive credit derivatives explosion.
Yes, he is investing because he can take a hit and still have billions elsewhere to survive.
October 23rd, 2008 at 6:38 pm
good call on buffet, that suggestion of his sent up red flags with me also. how much did the gov pay him for the gov’s thoughts ????????
http://www.youtube.com/watch?v=nWyQOh64Qy8
October 24th, 2008 at 2:45 am
can anyone say marxist?
October 24th, 2008 at 2:53 am
A ‘tightwad’ with $62 billion. There’s something fundamentally wrong with someone like that. How can anyone look up to someone who is just plain and simple, a junkie and an addict for wealth and power.
October 24th, 2008 at 4:31 am
You are the singer. Sing the sheep a pretty song. Sing to sleep the bristling throng. The tune of the wisdom of the ages. Concealed from the ignorant lower classes. Whose birth right bears no right in the eyes of those. Blessed by dark forces to breed and feed off the chaos created by the fear they engineer. The black boot print squarely on the back of the cattle mindless chattel. Man woman or child. Crush the promise, crush the potential. Wring out the God spirit and create a criminal. Create a cowering drone, mindless working stiff. Lead all the lemmings over the lofty cliff to their death.
October 24th, 2008 at 5:23 am
I’m sure Warren is investing. Most likely in futures contracts. He probably is betting that certain stocks will decline. In this game, you need suckers to buy and losers when they sell. But don’t forget the “shorts”….I suspect that this is Warren’s positions these days.
October 24th, 2008 at 7:38 am
In the town meeting after the premier of IOUSA he was unbelievably upbeat. The incredible size of federal unfunded liabilities, and the prospect of huge growing deficits extending into the future didn’t seem to bother him at all. He spouted platitudes about the creativity of the american people and how things tended to work out. At the time I thought he was whistling in the dark. Now I think he has thrown in with the politicians. Maybe they promised him a spot in the bomb shelter.
October 24th, 2008 at 9:29 am
Buffet is an NWO insider. He knows what is going to happen in a few years economically already. That is why he consistently wins. Don’t give this guy more credit than is due. The guy cheats.
February 6th, 2009 at 6:33 am
Buffet is a Soros/Rothschild butt boy.
February 9th, 2009 at 2:53 pm
Did I not here that Buffet was dumping USD’s and buying Euros?
I seem to remember reading that but I’m not sure
First Buffet and now Bill Gross who has been “contracted” by the government to buy long dated treasuries is pitching the idea that the Fed should be buying them back
Good idea Bill!
sheesh