By Dominique de Kevelioc de Bailleul
There is something very wrong with America if people embrace Berkshire Hathaway’s Warren Buffett’s sick notion that says more taxes are needed to pay for US budget deficits.
“We’re taking in too little money and spending too much,” Buffett said, in a CNBC interview on the subject of the federal budget deficit and his previous suggestion that billionaires should pay higher taxes. “Solving the problem of me paying the low tax rate I pay is not going to solve the fiscal problems of the United States, but to ask other people to be making sacrifices during this period—and we’re going to ask them to make sacrifices—we’re going to ask them to make it on the revenue side and the expenditure side, and to leave this group [the 400 highest income earners] alone is a travesty.” Sign-up for my 100% FREE Alerts
Buffett frames the debate on taxes in a classic Morton’s Fork, a term attributed to John Morton (1420-1500), archbishop of Canterbury and tax collector for England’s King Henry VII, which argues that wealth is available to collect from the rich, who have it—and from the frugal, who have learned to live without it (savings).
As the framers of the US Constitution warned more than 200 years ago, granting power of taxation to government only leads to bankruptcy, and worse yet, taxing labor is immoral and tyrannical—include you.
Buffett never broaches the issue of the 16th Amendment (never ratified); he, instead, seeks the path of least resistance to save his own skin and ‘reputation’ by offering to write a check to close trillion dollar budget deficits as an example of noblesse oblige.
“It’s only when the tide goes out that you learn who’s been swimming naked,” Buffett famously said, a quaint metaphor for describing the result of unhedged risk. But the quote can also be applied to a flawed and deteriorated political system, which, arguably, has been propped up since 1913 through easy money generated by an unconstitutional banking cartel. He never discusses the legality of a privately-held Federal Reserve and its role in budget deficits.
Given that the damage has already been done—the US has been technically bankrupt for decades—Buffett recommends giving still more tax dollars to a hopelessly broken Republic, which has suddenly become mired in a fight between the people and a powerful cabal, with political and banking hacks commingling roles between the Federal Reserve and Washington.
“We know where the egregious acts were, so enough with the lambasting of the banking system and all these bankers,” Buffett told Bloomberg. He raises the stakes in the argument with a risky proposition (bluff?) with tacit support of the banks.
And Buffett doesn’t stop there, though someone should stop him; he raises yet still, with an egregiously gratuitous remark about the housing market in his open letter to investors of Feb. 25.
He wrote, “Large numbers of people who have ‘lost’ their house through foreclosure have actually realized a profit because they carried out refinancings earlier that gave them cash in excess of their cost,” stated Buffett. “In these cases, the evicted homeowner was the winner, and the victim was the lender.”
Apparently, showing how out of tough he is, a similar Marie Antoinette moment brewed in France in the late 18th century. Transposing the Fed for the Catholic Church and Washington for French peers and an eerie comparison can be drawn by Buffett’s tack.
Like Paris, Washington cannot help but feel the heat of a collapsing economy as it attempts to pay for its own Empire, while the evidence of Warren Buffett’s mouth covered with cake crumbs can only serve to escalate the rage of bankrupted Americans led to slaughter by a reckless Fed. Wasn’t it a past financial icon “Sir” Alan Greenspan who encouraged the housing market bubble?
Now Buffett wants the American people to pay again and after his AIG bailout in addition to the Greenspan fiasco. Is he suggesting that money created out of thin air that bankers profusely lent to buy homes should now be taxed—which is essentially asking the borrower to pay tax on a tax (inflation)?
Ironically, as the American people fight another French Revolution, a former subject of the ‘Red Coats’ and another household name of finance, Jeremy Grantham of GMO LLC, at least partially succeeds where Buffett fails in the diagnosis of the fiscal problems of the US.
“ . . . the current U.S. capitalist system appears to contain some potentially fatal flaws,” Gratham wrote in his letter to GMO investors. “Therefore, we should ask what it would take for our system to evolve in time to save our bacon. Clearly, a better balance with regulations would be a help. This requires reasonably enlightened regulations, which are unlikely to be produced until big money’s influence in Congress, and particularly in elections, decreases.”
Big money influence on Washington? Grantham strongly intimates that corporations (presumably led by the most powerful corporations of them all: banks) have influenced politicians, thereby exposing a “fatal flaw” of alleged American capitalism.
That now-exposed fascist oligarchy in America, which loses credibility each day, has desperately enlisted Uncle Warren as a pinch-hitting King Solomon in an effort to quell a groundswell movement of liberty spearheaded by presidential candidate Congressman Ron Paul.
Paul couldn’t disagree with Buffett any more and takes Grantham’s assessment one huge step further in the diagnosis of what ails America, when Paul stated, “Capitalism should not be condemned, since we haven’t had capitalism.”
The idolatry of Buffett’s crony capitalism scheme has been exposed, but he doesn’t see that any more than he saw the credit collapse of 2008. Or, maybe, a more compelling case could be made that demonstrates Buffett’s role as America’s avuncular uncle and apologist for a fascist, crony capitalistic system is just another clever fraud to go along with Fed lies, Washington lies, and of American freedom.
“When one gets in bed with government, one must expect the diseases it spreads,” Congressman Ron Paul once said.
Just as Buffett under-priced risk to his Berkshire Hathaway insurance company empire, he has apparently underestimated the American people, too. Diverting attention away from the root cause of Washington’s budget deficit with a divide-and-conquer ploy of framing a debate which pits the rich against the middle class will, in the end, not work—if he’s paying attention to Paul’s gathering steam in the American Revolution, the sequel.
“There’s a different understanding now. There’s a lot of people talking about free-market economics rather than Keynesian welfarism and interventionism,” Paul announced on ABC’s This Week. “There is an intellectual revolution going on with the young people. There are people who have sat on the sidelines for years.”
The advice of the American people to Warren Buffett is clear: Look old man, get on board with the Paul campaign tout de suite, or end up in a shot gun wedding with John Law, Alan Greenspan, on your way to the Mexican boarder.
No more taxes, no more bailouts, no more Fed, and no more crony capitalism. Sign-up for my 100% FREE Alerts