CNBC Interview: Warren Buffett Shows Fear (GLD, IAU, SLV, AGQ, PHYS)
Dominique de Kevelioc de Bailleul: In one of the most revealing interviews with the man who has always been optimistic for a continued prosperous America, Berkshire Hathaway Chairman Warren Buffett, for the first time, appears noticeably fearful about the future of the U.S. economy.
Buffett cult members must have noticed his more-than-usual speech stammer as he searched for the right words in response to questions posed by CNBC’s Becky Quick—who, incidentally, is one of CNBC’s softest of softball interviewers. In contrast, a Buffett interview with Rick Santelli would most likely drop the Dow 1,000 points within the first few minutes of questioning. Get my next ALERT 100% FREE
There’s little doubt, if you read between the lines of Buffett’s responses to questions from stick-figure journalist Becky Quick, it’s time to head for the hills and buy gold, gun and take up God. The 81-year-old investor had nothing good to say about the U.S. economy—a first for the Orifice of Omaha.
When Quick asked whether Buffett’s optimistic assessment of the U.S. economy of six weeks ago is still on track, Buffett began with a mea culpa nervous laugh, as if to say, ‘Oops, I misread the tea leaves. Sorry fans; this thing is going down.’
Stripping out the filler and avuncular chit-chat ‘Uncle Warren’ persona, the cold-hearted Nebraskan is saying that the outlook for the U.S. economy is not good—just as Jim Rogers and Marc Faber have warned investors many months ago. In fact, if Buffett wasn’t such a cheerleader for the establishment—the establishment that has feathered his nest for so many years—he’d stop treating investors with disdain though his condescending obfuscations to direct questions and hokey homilies of America the Beautiful—and come clean with investors.
Not Warren. Joining the Washington mafia is for life. No exceptions.
“Well, I’ve got a little different story this time,” Buffett chuckled, and went on to say that he’s been looking for a turnaround in the economy for more than two years, but nothing stands out as a potential catalyst of future growth. The GDP stall, back to flat-line, hasn’t been led by any particular sector; “ . . . it’s pretty general,” he said.
Quick asked, “Well with everything else — not a reversal, a slowdown in the growth, what happened? What happened six weeks ago to spook people, to spook businesses?”
Buffett responded, disingenuously, of course, “I don’t know the answer to exactly why it’s happening. And I don’t know what it will be three months from now or six months from now because three months ago I didn’t know what it would be today.”
The Sergeant Schultz of billionaires doesn’t know what Jim Rogers knows, or Marc Faber knows, or Peter Schiff knows—and Max Keiser, Eric Sprott, John Williams, Ben Davies, James Turk and about a dozen regulars of Eric King’s King World News. Buffett knows nothing, the Hogan’s Goat of Washington.
As the mountain of sovereign, corporate and personal debt chokes the economy—while the Fed won’t allow the markets to clear with its ZIRP policy—while the dollar debases at rates never seen since the Civil War, Buffett knows nothing of why the U.S. economy isn’t miraculously recovering from the post-Minsky Moment.
Lies through omission are still lies, Uncle Warren.
In short, the 81-year-old ‘legend’ has turned into a ‘has-been’ overnight. Or better yet, Buffett the oligarch is about to tank along with the U.S. economy, American exceptionalism, his Cadillac, his ice cream cones, See’s peanut brittle, and his phony blue-collar flag-waving imitation.
Instead of fighting the good fight throughout his storied career to prevent the U.S. from sinking into a fascist plutocracy, like the humble Texan Ron Paul has for three decades, maybe Buffett would gain some respect from other analysts who’ve been too busy being told they’re doom-and-gloomers, nut cases and extremists by the ‘prestitutes’ of main stream media. While Ron Paul was telling it straight, refusing Medicare payments from his elderly patients during his time as a practicing physician, Buffett smiled, chuckled and played paddy fingers with Charlie Munger and the boys in Washington who bailed him out with TARP.
Recall Uncle Charlie Munger’s comment about goldbugs. May 7, he said on CNBC, with who else, but the Tokyo Rose of the oligarchy, Becky Quick, “Gold is a great thing to sew onto your garments if you’re a Jewish family in Vienna in 1939 but civilized people don’t buy gold – they invest in productive businesses.”
And another oligarch, George Soros, should know exactly what Munger is talking about. Through his own admission, the teenage Soros turned in Jews to the Gestapo during the reign of the Third Reich in the 1930s. Soros is civilized, but people escaping the tyranny of Nazi Germany or 21st century America are uncivilized cattle. But, then again, Soros owns gold, hedging again from tyranny.
What a cast of characters.
Back to Buffett, who said this about JP Morgan gold cartel kingpin Jamie Dimon, “I think Jamie Dimon is one of the best bankers in the world.”
Sure, and Bernie Madoff was one of the best fund managers, too, until it was discovered that Bernie’s phony profits were just that, phony, a smaller Ponzi scheme than the one managed by a man at the helm of America’s largest bank.
“There’s No Way You Can Bet Against America & Win,” Buffett had said in his previous interview with Quick of six weeks ago, which begs the question: What America is he talking about? Central America? Those are the strangest words from a disgrace of a man who was ashamedly Made in America.
Related Tickers: SPDR Gold Trust (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV), iShares Gold Trust (NYSEARCA:IAU), ProShares Ultra Silver ETF (NYSEARCA:AGQ), Sprott Physical Gold Trust (NYSEARCA:PHYS).
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