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Precious Metals
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Re: Warren lightens up on the banks and adds BarrickWhat is most ironic about all of this is that Warren's father, Howard Buffett, is among the great gold bugs of all time. As we noted in 2010, a must read essay by Howard Buffett, father of the "legendary" investor who initially was so very much against derivatives then promptly changed his tune, discusses fiat money and gold, and concludes that "human freedom rests on gold redeemable money." In this stunningly simple, straightforward, and flawless analysis, Buffett's father stresses the relation between money and freedom and contends that without a redeemable currency, an individual's freedom and one's access to property is dependent on goodwill of politicians. Buffett also says that paper money systems generally collapse and result in economic chaos. He goes on to observe that a gold standard would restrict government spending and give people greater power over the public purse. Lastly, back in 1948, Howard Buffett, said this the "present" is the right time to restore the gold standard. Alas, 60 years later, his advice has still been largely ignored, and as a result we have a global economy that stands on the precipice of global default with runaway budget deficits across the entire developed world. Key quotes:
His conclusion is eerily prophetic with what is happening with US society currently:
And of course, he notes that the Federal Reserve is at the forefront of those who will do everything in their power to prevent a return of the gold standard: Most opponents of free coinage of gold admit that that restoration is essential, but claim the time is not propitious. Some argue that there would be a scramble for gold and our enormous gold reserves would soon be exhausted. Actually this argument simply points up the case. If there is so little confidence in our currency that restoration of gold coin would cause our gold stocks to disappear, then we must act promptly. The danger was recently highlighted by Mr. Allan Sproul, President of the Federal Reserve Bank of New York, who said:
Our finances will never be brought into order until Congress is compelled to do so. Making our money redeemable in gold will create this compulsion. |
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