Guest Post: The Best Looking Horse In The Glue Factory

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Tue, 08/09/2011 - 12:03 | 1542799 schoolsout
schoolsout's picture

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

Tue, 08/09/2011 - 12:34 | 1542869 nope-1004
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.

Tue, 08/09/2011 - 12:37 | 1542896 Spitzer
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.

 

 

 

 

 

Tue, 08/09/2011 - 13:31 | 1543086 HoofHearted
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

Tue, 08/09/2011 - 13:30 | 1543073 Pegasus Muse
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

 

 
Tue, 08/09/2011 - 12:04 | 1542804 Spitzer
Spitzer's picture

Euro was up when the dow was down 600

King Euro

 

 

Tue, 08/09/2011 - 12:06 | 1542806 HITMAN56
HITMAN56's picture

this is a story bout Billy Jo and Bobby Sue...

http://www.youtube.com/watch?v=-WCFUGCOLLU&feature=player_detailpage

Tue, 08/09/2011 - 13:30 | 1543082 Its the Vatican...
Its the Vatican Stupid's picture

I beg to differ:

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

http://www.youtube.com/watch?v=2USrLPeB2rY

Tue, 08/09/2011 - 12:08 | 1542813 AnAnonymous
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.

Tue, 08/09/2011 - 12:26 | 1542868 EvlTheCat
EvlTheCat's picture

Sounds like a broken record

Tue, 08/09/2011 - 12:08 | 1542814 drbill
drbill's picture

Alternative title: Most Appealing Turd in the Punch Bowl

Tue, 08/09/2011 - 12:14 | 1542834 Spitzer
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.

Tue, 08/09/2011 - 12:38 | 1542898 cranky-old-geezer
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.

Tue, 08/09/2011 - 12:53 | 1542924 Spitzer
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".

Tue, 08/09/2011 - 13:52 | 1543160 cranky-old-geezer
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.

Tue, 08/09/2011 - 17:21 | 1544047 Spitzer
Spitzer's picture

Still no reasons eh ?

Wed, 08/10/2011 - 14:18 | 1547436 cranky-old-geezer
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.

Tue, 08/09/2011 - 12:58 | 1542946 ddtuttle
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.

Tue, 08/09/2011 - 13:47 | 1543131 Spitzer
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".

Waiting.....waiting......

Tue, 08/09/2011 - 14:23 | 1543284 Creepy Lurker
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*

Tue, 08/09/2011 - 23:22 | 1545116 StychoKiller
StychoKiller's picture

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

Tue, 08/09/2011 - 12:08 | 1542815 bigdumbnugly
bigdumbnugly's picture

still horseshit no matter how it looks

Tue, 08/09/2011 - 12:08 | 1542817 Caviar Emptor
Caviar Emptor's picture

Best looking corpse in the morgue. 

Best looking bean sprout in Germany

 

Tue, 08/09/2011 - 12:24 | 1542863 pods
pods's picture

The hottest Omega Mu.

pods

Tue, 08/09/2011 - 12:30 | 1542876 Caviar Emptor
Caviar Emptor's picture

Hottest hooker with clap

 

Tue, 08/09/2011 - 13:19 | 1543035 Citxmech
Citxmech's picture

"The leper with the most fingers"

(courtesy of The Two Jakes and Max Keiser)

Tue, 08/09/2011 - 13:39 | 1543115 pods
pods's picture

Best tasting Chinese Prastic rice.

pods

Tue, 08/09/2011 - 14:12 | 1543256 karzai_luver
karzai_luver's picture

diabetic with the most toes is more to the point.

 

 

 

 

bwhaaaaaa

 

 

Tue, 08/09/2011 - 12:11 | 1542826 piceridu
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:

http://www.youtube.com/embed/-McpNtHet3w 

Tue, 08/09/2011 - 12:36 | 1542888 mmlevine
mmlevine's picture

I agree - nice post.

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

Tue, 08/09/2011 - 12:40 | 1542903 Bastiat
Bastiat's picture

Great stuff!!

Tue, 08/09/2011 - 12:49 | 1542920 cranky-old-geezer
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.

Tue, 08/09/2011 - 12:14 | 1542835 Downtoolong
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.

Tue, 08/09/2011 - 12:14 | 1542838 Temporalist
Temporalist's picture

Our favourite Eurozone MEP Nigel Farage:

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

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/9_Nig...

Tue, 08/09/2011 - 12:14 | 1542839 gwar5
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.   

Tue, 08/09/2011 - 13:39 | 1543113 GreenSideUp
GreenSideUp's picture

They've been working on it for a while:

 

http://en.wikipedia.org/wiki/Iranian_oil_bourse

 

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

 

http://www.thinkandask.com/news/thedollar.html

Tue, 08/09/2011 - 13:59 | 1543194 MachoMan
MachoMan's picture

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

Tue, 08/09/2011 - 12:14 | 1542841 drink or die
drink or die's picture

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

Tue, 08/09/2011 - 13:19 | 1543042 Temporalist
Temporalist's picture

That was the scotch.

Tue, 08/09/2011 - 12:16 | 1542845 Piranhanoia
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.

Tue, 08/09/2011 - 12:16 | 1542846 Manthong
Manthong's picture

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

Tue, 08/09/2011 - 12:16 | 1542847 tahoebumsmith
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.

Tue, 08/09/2011 - 12:20 | 1542854 Caviar Emptor
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. 

Tue, 08/09/2011 - 12:18 | 1542853 Bohemian Clubber
Bohemian Clubber's picture

LONDON

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

http://www.telegraph.co.uk/news/uknews/crime/8690602/London-riots-kitche...

Tue, 08/09/2011 - 12:27 | 1542870 Caviar Emptor
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

Tue, 08/09/2011 - 13:30 | 1543083 V in PA
V in PA's picture

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

Tue, 08/09/2011 - 13:34 | 1543096 LFMayor
LFMayor's picture

and you know them colored's love those pangas

Tue, 08/09/2011 - 12:22 | 1542858 Silver Dreamer
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?

Tue, 08/09/2011 - 12:36 | 1542890 fuu
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?

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