Buffett’s Buddy Charlie Munger to Goldbugs: ‘You’re a Jerk.’
goingbroke
Posts: 1,410
Charlie Munger sounded off on gold during an interview. Munger, 87 years old, has long been one of the closest confidants of Berkshire Chairman and Chief Executive Warren Buffett, though he has been less involved in Berkshire’s day-to-day operations in recent years.
I don’t have the slightest interest in gold. I like understanding what works and what doesn’t in human systems. To me that’s not optional; that’s a moral obligation. If you’re capable of understanding the world, you have a moral obligation to become rational. And I don’t see how you become rational hoarding gold. Even if it works, you’re a jerk.
I don’t have the slightest interest in gold. I like understanding what works and what doesn’t in human systems. To me that’s not optional; that’s a moral obligation. If you’re capable of understanding the world, you have a moral obligation to become rational. And I don’t see how you become rational hoarding gold. Even if it works, you’re a jerk.
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mariner67, and Mikes coins
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Comments
What would Uncle Charley say about that?
What works for Charley may not work for 99.99% of the rest of us. We all know that JPM & GS only choose the finest Tuna to be Starkissed. Sorry Charlie.
roadrunner
See, the way I've got it figured is that it won't be the gov that goes after your gold and cash assets, it will be paper boys like this that will do a GS on the gov and tell them that they can't have private people with money anywhere than in their markets.
Does Berkshire Hathaway profit from the healthcare control legislation? What did Buffett get out of the deal when he divested his silver position so suddenly? Who's interests does Ben Nelson represent - Berkshire Hathaway or the majority of folks living in Nebraska? The more you learn about Buffett, the less he seems to be what he's been made out to be as the consumate investor and defender of capitalism.
The lines are being drawn.
Not all of the heavy hitters agree with Charlie Munger. Gold is far from being discredited like the dollar. From Jim Sinclair's website this evening:
Earlier this week Thomas Hoenig, president of the Kansas City Federal Reserve, went out of his way to call the gold standard a "very legitimate monetary system." In November, World Bank President Robert Zoellick and Indiana Republican Congressman Mike Pence both called for a serious look at using gold as the centerpiece of international monetary reform.
I knew it would happen.
Yes, I think that's what he is getting at. And I think the reason that he is ticked off - is because more people understand the problem now.
I knew it would happen.
Those guys liked bullion enough to have bought 120 MILLION ounces of silver from around 1995-2006. Sounds like they, like Alan Greenspan, were made an offer they couldn't refuse to get out of hard money and join the Ponzi frat boy scheme. They knew a good thing when they saw it. But then realized an even better thing was to be one of the chosen insiders.
roadrunner
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<< <i>Ok, just to make sure I understand what he is saying. I am a jerk because I may be chosing to put money into some metals instead of the stock market so he and his buddies can play with it and stuff more in their pockets?? Sounds like he is rather sour about it...
Yes, I think that's what he is getting at. And I think the reason that he is ticked off - is because more people understand the problem now. >>
Yup. The bitter old fool doesn't want anything to divert money from or compete with the stock market.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Since I am a jerk, I'd be glad to buy it from you, cheap.
I knew it would happen.
Have a fair amount of cash on hand by pulling a 5 or a 10 or even a 20 out of your pocket change every few days and stashing it. To do this, every payday, go pull 200 or 300 out of your account and use it for your weekend supply runs or for your weekly lunches and the like. You are going to spend that money anyway the only difference is that you put your plastic away and use actual cash. Soon (suprisingly enough) you will have 700-800 dollars in cash that you have rat holed. Once you get there, do it again until you have done it for a while and have a few thousand dollars stashed away. Alternatively, every few months or so, you can just burn it off as a free vacation, gift for the significant other or just blow it on a really good time without using any plastic at all. Once you're in the habit, it's easy and if you have a lean month, just forgoe the stashing. The really cool thing about this is you never miss the $5 or $10 you pull off your wad every now or then and it is a good thing to have a one on one relationship with your cash instead of an abstract relationship between your money and your plastic.
As you do this, begin to convert to cash transactions instead of always using your debit card. You will save debit fees and choke the banks that get paid everytime you use it. Maybe the prices of goods will have to come down because of the lower overhead by the retailiers who have to pay the banks the swipe fee every time you use your card. It's like a bank tax on all of your transactions made with plastic, it's how they make money. You pay about 2% more for your products because of swipe fees...no discount for cash, it's baked into the system now so the banksters rake every plastic transaction for 2%...good work, if you can get it. Alternatively, it is very satisfying to thumb through a few hundred dollars that you never felt any pain putting away and it's all yours, free and clear, no fees, no statements, no BS, not in an account, and it's rip-off free by the bankdsters...enjoy!
Stashing metal is another good way to opt out of being played by the banks. The banksters, the paper boys, the whole system of gaming the consumer for profit is based on being in the markets with visible accounts that are managed by middle men...everybody gets paid but you, the payer. If you have your personal assets in metal or land or something that is not handled by the banksters then they don't get paid and they can't make a living off of you. You should and must pay taxes on any financial gains from your transactions, if you have any, but you sure as hell don't have to support a bunch of middle men along the way and since they don't take any risks for your investments, there is no reason they should get a dime. The nice thing about physical metal is that you don't have to wait days for the account to settle, no one has all your personal information on an account sheet that is available to anyone that asks for it, and you own no one for settlement fees, transaction fees, broker fees, and any other charge they can try and hook you up to. PMs are totally liquid, any time.
By opting out of supporting the banksters and paper boys, you also leave less of a foot print. By using your debit and credit cards you leave a considerable paper trail that is sliced and diced by marketers down the line that market you with specific advertising based on your purchases. That is not such a bad thing in itself but it does reflect the wake you are leaving everytime you offer up some plastic. Advertising, number of views, number of market specific emails/adds/come-ons that can be sent out, number of clicks on your computer is a fee for the advertiser that is paid by the product owner...result is higher fees for products that you buy because the manufacturer had to pay the advertisers to finger you with some kind of ad. That add takes up your time by having to handle it either to delete, respond, or opt out...making money for them and all their middle men by using your time, your phone, your computer...heck of a deal eh? With cash or holding metal instead of stocks, none of this happens. If you wonder why you are out of time and stressed all the time, check out your interaction with unsolicited advertising and it may yield a few clues.
Every time you buy or sell a stock, put money into your 401 or IRA, you leave a huge trail that everyone in the industry has access to. Of course the argument could be made that there is no need to worry about all of this because they are just following the rules but the other side of the coin is it's none of anybody's business where you spend your money much less how much you have in your personal stock account, private bank checking or savings account or even what personal products you buy. If everybody knows everything about your business then, it's really not your business any more, it is just short of being public information. There is a difference between private assets and public monies...the distinction seems to be getting a little blurry.
Yep, I'm a jerk.
Got CASH?
Remember the advice, "get in touch with your feelings"? Well, hammerman's advice is to "get in touch with your cash", and I heartily endorse the concept.
Only two other questions. What IRA? What 401K? I dunno what yer talkin' about.
I knew it would happen.
<< <i>Since I don't want to be a jerk, I think I'll sell my gold.
Since I am a jerk, I'd be glad to buy it from you, cheap.
"hoarding," huh?
I think few in the US are awaiting the dollar's demise just to get wealthy on a gold hoard.
It's more like hedging with a lot of gold. Hedging ain't bad.
Here Charlie, have a prune.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>Eff him and guys like him. It's none of his effing business what you, I or anyone else chooses to do with their money. Sorry for the diatribe but for some reason that really ticked me off....
I think your sig line is funny, but you forgot about the toning...
<< <i>Earlier this week Thomas Hoenig, president of the Kansas City Federal Reserve, went out of his way to call the gold standard a "very legitimate monetary system." In November, World Bank President Robert Zoellick and Indiana Republican Congressman Mike Pence both called for a serious look at using gold as the centerpiece of international monetary reform. >>
I believe you are going to see more thinking like this as they wake up to the fact that China has been hoarding gold just to do that with the yuan. The battle for the next world currency will be won by the first one to successfully find gold backing. Of course it will need the support of many other nations and China seems to be addressing that with recent deals in helping to bail out southern europe. China appears to be gaining new friends by reaching out economically. Of course, they own most of our debt, but that is meaningless as long was we are a strong military power. China's new friends won't be in a position to say "no."
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>
<< <i>Earlier this week Thomas Hoenig, president of the Kansas City Federal Reserve, went out of his way to call the gold standard a "very legitimate monetary system." In November, World Bank President Robert Zoellick and Indiana Republican Congressman Mike Pence both called for a serious look at using gold as the centerpiece of international monetary reform. >>
I believe you are going to see more thinking like this as they wake up to the fact that China has been hoarding gold just to do that to with the yuan. The battle for the next world currency will be won by the first one to successfully find gold backing. Of course it will need the support of many other nations and China seems to be addressing that with recent deals in helping to bail out southern europe. China appears to be gaining new friends by reaching out economically. Of course, they own most of our debt, but that is meaningless as long was we are a strong military power. China's new friends won't be in a position to say "no." >>
They do not own most of our debt, they own just under 1 trillion, or about 7% of the U.S. debt.
<< <i>They do not own most of our debt, they own just under 1 trillion, or about 7% of the U.S. debt. >>
My bad, I meant to say they are one of the largest single holders of our debt, big difference.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey