Guest Post: The Best Looking Horse In The Glue Factory

Tyler Durden's picture

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schoolsout's picture

Gonna have to print this one up and read it later...skimming over it, it looks good.

nope-1004's picture

Let me summarize it for you: Buffet said

“Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything.”

Now can someone please define "money" for the ostrich of Omaha? Is money debt? Is money an IOU? Is money federal reserve promises? Truth is, he's past his prime and still entrenched in a failed economic model and, like the big banks, will fail too.

I'd also like to know what the average "productivity" of an American is vs. gold.  I bet it's gone waaaaay down in recent years.  So his comparison that gold doesn't produce anything is a bit heady, considering his own country is fat and lazy.

Spitzer's picture

I'd also like to know what the average "productivity" of an American is vs. gold. 

American productivity is net negative. That is the essence of the trade deficit.






HoofHearted's picture

Can't believe nobody else has said this...

"I try to buy shares in companies that are so wonderful, an idiot could run them, and sooner or later one will. Our country is a bit like that.”-from our old Buddy Warren...

Haven't we had idiots running the country for too long and that's why we're in this damn mess now???- HoofHearted

Pegasus Muse's picture

Old Fart Warren should have paid closer attention to his father, Congressman Howard Buffett:

"I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it, unless you are willing to surrender your children and your country to galloping inflation, war and slavery then this cause demands your support. For if human liberty is to survive in America, we must win the battle to restore honest money. There is no more important challenge facing us than this issue -- the restoration of your freedom to secure gold in exchange for the fruits of your labors."

Howard on fiat currency... "But first let me clear away a bit of underbrush. I will not take time to review the history of paper money experiments. So far as I can discover, paper money systems have always wound up with collapse and economic chaos."

Source: Congressional records


Spitzer's picture

Euro was up when the dow was down 600

King Euro



Its the Vatican Stupid's picture

I beg to differ:

Goodbye Mr. Ed.- David Bowie (Tin Machine)

AnAnonymous's picture

Same fallacy here.

US citizens love to make it a monetary/currency issue.

It is not. Production capacity is about to level or even to decrease.

In this context, even with no increase of the money supply, every debt is repaid in currency that is worth less and less as less and less goods are produced.

That is the core issue.

And currently, the US and co are fighting to make sure they will go past the tipping point having enjoyed the most of the expansion phase.

US citizens want to consume as much as it is possible while consuming is still a cheap option because of abundance. Debt is extremelly good in this context.

EvlTheCat's picture

Sounds like a broken record

drbill's picture

Alternative title: Most Appealing Turd in the Punch Bowl

Spitzer's picture

If you think its the dollar then you are wrong.

The Eurozone is a net creditor with no trade deficit. So give me a good reason that the dollar is "the most appealing turd in the punchbowl"

Surprised Mythbusters hasn't got ahold of this one yet.

cranky-old-geezer's picture

So give me a good reason that the dollar is "the most appealing turd in the punchbowl"

It's the world reserve currency.

Not much longer though.

Spitzer's picture

Creditors have an excess supply of them because it has been the reserve currency. That is a negative, not a positive.

Plus, when people spew the myth, they are implying that it has the best fundamentals of all the currencies, they are not implying that it "is the reserve currency".

cranky-old-geezer's picture

Don't bitch at me, go bitch at those folks rushing into US Treasuries. 

They don't care about your arguments for the Euro.  Nor do I.  Nor does anyone else.

If you think the Euro is so wonderful go invest in it.  Put your money where your mouth is.

cranky-old-geezer's picture

I already gave you a reason.  A big reason.

It may not qualify in your view, but it obviously qualifies in many other people's view. 

If it idoesn't qualify in your view, fine.  Nobody cares about your view.

ddtuttle's picture

The Euro is not even 10 years old and they've completely destroyed the thing.  It should be the cleanest healthiest currency on the planet because, in theory, there hasn't been time to F^%#K it up.

But they allowed their banking system to print obscene amounts of these things and put the continent into a classic debt deflation/liquidity trap.  At tleast the United States took 70 years to get in this much trouble.  Besides its the obligation of the holder of the reserve currency to liquify the global economy.  It ends being an economic curse, but our empire is based on that and the Pax Americana from the 700  military bases we maintain around the world.

Admittedly we're just as F^%$#K'd as Europe, but at least we have an excuse.

Spitzer's picture

No, you are 50 billion dollars a month more fucked then Europe. Germany has trade surpluses with China.

So out of that whole rant...I didn't see one reason why the dollar is " the best looking horse in the glue factory".


Creepy Lurker's picture

I understand your frustration, I don't get it either. I've been watching so much money pour into Treasuries the damned things have gone down nearly 100 BP in 4 days, immediately after the downgrade.

There is no rational explanation. For whatever it's worth, I agree with you. Sorry I can't explain it, I can't even explain it to myself. *shrugs*

StychoKiller's picture

It's "Tradition!"   Oh, you wanted a RATIONAL bad.

bigdumbnugly's picture

still horseshit no matter how it looks

Caviar Emptor's picture

Best looking corpse in the morgue. 

Best looking bean sprout in Germany


pods's picture

The hottest Omega Mu.


Caviar Emptor's picture

Hottest hooker with clap


Citxmech's picture

"The leper with the most fingers"

(courtesy of The Two Jakes and Max Keiser)

pods's picture

Best tasting Chinese Prastic rice.


karzai_luver's picture

diabetic with the most toes is more to the point.








piceridu's picture

JQ, nice post! 

Is this even possible? 
“It is true that liberty is not free, nor is it easy. But tyranny – even varying degrees of it – is much more difficult, and much more expensive. The time has come to rein in the federal government, put it on a crash diet, and let the people keep their money and their liberty.” Ron Paul

I guess you don't need a phd to know what the fuck is going on...this guy got it right: 

mmlevine's picture

I agree - nice post.

And the video link!  A+ funny and true as the day is long.

cranky-old-geezer's picture

White-collar looters, pirates, and criminals have PhDs.  

PhDs are used to build and operate Ponzi schemes.

Show me one PhD not helping keep a Ponzi scheme going.

Downtoolong's picture

Yesterday, most investors ironically confirmed and admitted with what’s left of their free market rights that the best the markets now have to offer them is U.S. Treasury paper, issued by the same government that is destroying their savings with rates of return so low it guarantees their wealth will lose purchasing power over time. Of course, this works out great for the government, which will now pay even less interest for the additional borrowing and spending they plan to do, even as they and Wall Street urge people to work longer and save more. It all adds up to the biggest wealth transfer in history from the prudent to the careless. But, for how long? The grasshopper will still die after it eats the ant. At some point, I expect savers will just throw in the towel and start spending more too, which will be great for the economy in the short run, and devastating for it in the long run.

Too-Big-To-Fail? Ha! If this isn’t a failure of the financial industry I don’t know what is. Small investor to Wall Street and the government it owns – I want a divorce.

Temporalist's picture

Our favourite Eurozone MEP Nigel Farage:

Nigel Farage - London on Fire, So is Gold, Millions are Terrified

gwar5's picture

The really big, important shoe to drop is when the oil countries refuse to accept USD.

More...  with the Muslim Brotherhood now taking over MENA, sucking up to them to buy more time will become more entrenched policy. Head of Iranian Red Guard is now the OPEC leader, which can't be good. All ominous outcomes on the horizon due to the destruction of the USD.   

GreenSideUp's picture

They've been working on it for a while:


And those WMDs in Iraq?  Saddam trading oil in Euros.

MachoMan's picture

I thought that another prophesied/claimed oil had already been priced in gold + dollars for a considerable period of time...

drink or die's picture

I don't know...I thought Obamas speech was pretty outstanding.  It made me feel really good about myself.

Piranhanoia's picture

Thanks a lot Wilbur. two legged stick insect without the brains to put peanut butter in my teeth so I would look like I was talking. Wanna know how many times I kicked the bastard pulling on my bit with a wire?   I neutered every one of em.  Couple dozen before I was finished at least.  Soon as they canceled us, I got the producer with both shoes.  He's in the wall at the studio, couldn't get the bastard out.  But I digress.

Manthong's picture

You don't need a bankerman to tell which way the fiat goes.

tahoebumsmith's picture

Look at where all the intervention has gotton us thus far? Nowhere... Back in the same situation we were in before the 16 TRILLION was spent. Actually other then the ability to get free money, every other economic indicator is back to 2008 levels or worse. So keep lighting the firecrackers, just save the one with the shortest fuse for last.

Caviar Emptor's picture

Yup. GDP is back to near zero, the market is back to pre-QE2 levels but employment never rebounded (and probably degraded further), oil never returned to pre-QE2 levels, housing never rebounded, real rates are more negative and banks are in trouble again again again. 

So in their wisdom they want to try the experiment again. Harder. 

They may end up pushing the developed world over the cliff of biflation. 

Bohemian Clubber's picture


"Police advised residents of Notting Hill, Ladbroke Grove and Fulham to stay indoors as residents reported seeing men carrying machetes in the road. "

Caviar Emptor's picture

Coming to a hoity-toity community near you. Visions of Russia in 1917, France in 1789, Britain when King Charles was beheaded in 1649 etc etc

V in PA's picture

It's a shame they can't pick'em off from the bedroom window like we can.

LFMayor's picture

and you know them colored's love those pangas

Silver Dreamer's picture

I cannot help but notice the strange hand gesture by Buffett in the above photo.  If you look at the other photos on the web of him, he has quite a few.  Is he a Free Mason or are his fingers triple jointed?

fuu's picture

Or he is just old and it takes more fingers than normal to grip something.  mean why would he need to flash a Mason sign to Lloyd?