Warren Buffett’s Dirty Little Secret

Billionaire investor and master of skimming life insurance premiums from young families fearful of leaving children behind with no means of support finds himself ingratiating himself with the American people in the hopes of deflecting one simple secret.  He’s a giant wolf in sheep’s clothing.

When that sudden death of fortune hit the Buffett family in 2008-9, his lack of planning for the unexpected was waived—all premiums were magically paid in full for the oligarch.  Sign-up for my 100% FREE Alerts

Your young family is too small and insignificant to matter, but the Oligarch of Omaha is too big to fail, we are told.  T.A.R.P and the higher taxes it implies down the road is essentially Buffett’s means for collecting on the back end of an unhedged empire, a gun to the head leveled by the U.S. Treasury’s collection agency—the I.R.S.  That, too, costs Buffett nothing.

“OUR leaders have asked for ‘shared sacrifice.’ But when they did the asking, they spared me,” Buffett began his Aug. 11, 2011 Op-Ed piece of the NY Times entitled “Stop Coddling the Super-Rich”.

Very clever.  He’s one of us, now, and he’s willing to pitch in for the sake of the country.  Touching, really.

Not only has Buffett been “spared” during the crisis, but he and his friends have benefited from Uncle Sam’s fascist business model for decades.  Would monopoly buster Teddy Roosevelt overlooked ‘too-big-to-fail’ mega banks, AIG and Wal-Mart’s raping and pillaging of each and every city downtown?

Now, Buffett wants, in addition to the premiums the young couple pays to him each month, he believes it’s also okay for the couple to be forced by way of I.R.S gunpoint to pay Buffett again to bailout his AIG and the dominoes of related Ponzi paper he has amassed.  That’s fascism with a chuckle, a Coke and See’s peanut brittle, and from the avuncular old man whose other monopolist billionaire friend Bill Gates finds so “loveable.”

When asked about the banking crisis on a popular daytime program, Buffett insists we stop picking on the bankers.  Why?  Because he made the exact same mistake as JP Morgan, Goldman Sachs, Morgan Stanley, as well as Citi and other NY money center banks, yet benefited from T.A.R.P no less, in fact, more, than any other human alive.

And how about Buffett’s “Buy American. I Am” article published in the NY Times in October 2008?  He reminds the reader of how bad things were in the Great Depression, but America came back.  The DJIA went from a low of 66 to 11,497.

He ends with:

I don’t like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, I’ll follow the lead of a restaurant that opened in an empty bank building and then advertised: “Put your mouth where your money was.” Today my money and my mouth both say equities. Emphasis added.

Less than two years later, in 2010, Buffett is heralded by a complicit press of the fascism model as the one to follow back into the stock market.  His $34 billion “bet” on the future of America by buying Burlington Northern railroad was the feature story to a gullible American public.  If Buffett is buying “equities”, so should you, is the message.

What Buffett doesn’t tell you is that, his investment in Burlington Northern is really a camouflaged bet on inflation.  And lots of it, too.  But he sells his expectations of a much, much lower dollar as a ‘bet on America’.

Essentially, Buffett’s purchase of Burlington Northern kills several birds with one stone.

First, he is finally hedged for a decline in the U.S. dollar and further erosion of his paper empire.  In gold terms, Berkshire Hathaway class A stock is down nearly 75 percent against the arch enemy of the Fed and the U.S. dollar, gold.

But Buffett has a problem.  He cannot recommend gold; it would disrupt his relationship with the Fed and the fascist business model friends in Washington, of which, he has been the top crony and charming cheerleader—the Ted Bundy of Wall Street.

And to show his undying allegiance to the mob bosses in Washington, he made a complete fool out of himself (fraternity display of allegiance) with Berkshire Hathaway annual report diatribe against sound money, slapping the face of his father, who was a strong advocate of sound money for the people prior to “Sir” Allen Greenspan’s entrance to the hard-money chorus.

Buffett must be very big on actuarial tables.  What are the odds that the dollar defies 3,500 years of success in retaining value?  No fiat currency of the past three-plus millennia has survived—ever.  But Buffett won’t reveal the parlor trick of why he’s poo-pooing the idea.

The purchase (biggest ever for Buffett) of a railroad and its assets of land and cars will retain value during high inflation; it’s his sneaky hedge to a problem he sees coming but ain’t telling.  Inflation.

And, the best feature of all in the purchase of a railroad is: in the case of hyperinflation in America and the civil unrest it will most assuredly cause, the Feds are expected to tax real money, gold, at confiscatory rates as a form of capital control to support the dollar.  Again, it’s another job for the hit-men at the I.R.S.  But, if the military has to be deployed to protect vital infrastructure, Buffett’s railroad will be a part of that protection. Very clever.

The guy just can’t get himself to go it alone.  Buffett constantly needs a freebie by the Feds, but he wants you to believe he is a risk-taker and confident of a robust U.S. economy.  What a dirty little secret this guy lives with—and apparently he feels no guilt.  There’s a psychiatric term for people like Buffett, somewhere. Sign-up for my 100% FREE Alerts