There is no great challenge to being successful when you have the sole legal right to create new money. On the other hand, convincing the American people and Congress to go along with such a scheme through the creation of a third central bank, the Federal Reserve, was no small task. But with that task having been accomplished 100 years ago, the primary responsibility of its beneficiaries today is to keep the whole operation out of public view by hiding it behind jargon. Through the use of such terms as quantitative easing, rediscount rates, FOMC operations, carry trade, etc., the public remains hopelessly in the dark as to the real cause of their steadily eroding standard of living.
Even the chief propagandists for the system — the academics, economists and media — are not intentionally let it on the game. Certainly some are bright enough to figure it out, but as Senator John Sherman once said “The few who can understand the system will either be so interested in its profits, or so dependent on its favors, that there will be no opposition from that class.”
There can be no better example of one who is interested in the easy profits of central banking than Warren Buffet. With some high profile beneficiaries, it is unclear whether they truly understand the fraud they are promoting, but when it comes to Warren Buffet there can be no doubt. One only needs to look at a single essay written by his father, Congressman Howard Buffet, entitled Human Freedom Rests on Gold Redeemable Money. In it, the elder Buffet states:
“I warn you that the politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it. Also those elements here and abroad who are getting rich from the continued American inflation will oppose a return to sound money. You must be prepared to meet their opposition intelligently and vigorously. They had had 15 years of unbroken victory.”
You can now make that 80 years with his very own son one of the biggest champions of fiat money inflation. What makes Warren Buffet a particularly depressing figure is the knowledge that he was raised in an environment that instructed him well as to the essential link between sound money and liberty and chose to turn his back on it.
Even in his eighth decade of life, Warren Buffet continues to promote the fraud of the Federal Reserve and a centrally planned economy. The video is somewhat painful to watch, but also very telling as Mr. Buffet recently addressed a group of students at Georgetown University. Watch as he tells them that the Federal Reserve is the greatest hedge fund in history.
So, tell me again, Warren, where exactly did the Federal Reserve get 3.5 trillion dollars?
I agree with you, Paul. Given the wise comments of his father, listening to Warren Buffet is painful. I hope he lives long enough to see the Fed disaster, and eat his words.