Charlie Munger, Warren Buffett’s longtime business partner in Berkshire Hathaway, warns in a new column that the U.S. economic empire is crumbling before our eyes, thanks to federal debt and poor planning.
In an article penned for Slate.com, Munger uses the form of a parable to explain how Wall Street’s love affair with gambling has destroyed America’s Main Street.
The Berkshire Hathaway vice chairman describes the economic history of Basicland, which happens to match U.S. history.
Early in its history, debt is unknown except for home mortgages and some consumer loans, and people live within their means. Speculation is discouraged, and commodities markets are small and tightly regulated. Under this rational system, economic growth skips merrily along at a steady 3 percent, Munger explains.
Taxes are limited and pay for only “essential services” like fire protection, courts, and defense. Most taxes are collected on imports, and government spending matches that tax income. Debt via government bonds is limited.
Then things take a turn for the worse.
More Here..
Can we now line up those who caused this and execute them?
ReplyDeleteAll my life I have lived on a budget that equals my income. I am now 50 years old, I have a minimal savings, my cars are old as hell, my home is paid for, free and clear, but since I lived a responsible life.
Why can't these bastards in Washington D.C. do the same?
6:40 Because it's our money and not their money. They have had no consequence in spending the country into poverty since the majority of the people weren't paying attention to their foolishness. To the politicians it's just spend to get re-elected and move on. I am 68 years old and like you I have lived within my financial bounds. As a result I am not in financial trouble as many are in this country, a small few through no fault of their own, but the majority through reckless spending and no savings. Unfortunately I agree with Munger's point-"It is over for the US economy". All will suffer to varying degrees!
ReplyDeletelast one out "Turn off the Lites"...
ReplyDeleteReading the comments here, I get the eerie feeling we're living in a third world country or a country with a corrupt rich elite like Mexico or Argentina. Funny how now it's hit home. Never ever thought this was possible in the good old US of A. NEVER. But it is here.
ReplyDeleteWe are being fleeced by the ultra-rich, and being left just as destitute as the illegals who cross into the USA.
Coincidentally, I read that Canada recently implemented laws that any Mexican visiting or entering Canada must have a special VISA first, and must fill out documents proving they have a sufficient income at home in Mexico, bank statements, etc. This is because so many illegal Mexicans were trying to go into Canada to get refugee status and free benefits at the cost of Canadians.
At least Canada protects its borders.
Soon, Americans may even try getting into Canada, only to learn they will be the next to need VISAS, lol.
Ultimately, Canada will be overrun with millions of refugees from strife and war torn martial law america, and millions more mexicans will be joinging them.
ReplyDeleteDoes canada even know the fate that awaits it?
Ever since last spring when it was announced that the States were using drones to cover the border between the U.S. and Canada, I first thought it was to keep the U.S. citizens from leaving, BUT now I believe it wholeheartedly.
ReplyDeleteAh blame all this on the failure of communism ?
ReplyDeleteThe State capitalism in the USSR collapsed under a pile of debts before they could get to america and steal the wealth of old amercan grannies hidden under the bed. To keep their system working and the hand of corruption greased by profit
But even had they lasted and” liberated” America today they would now find little saved under the mattress .As a different group of state capitalist theives got there first.
Just goes to teach Americans that man cannot live on plunder alone.Ah the failure of communism ?
The State capitalism in the USSR collapsed under a pile of debts before they could get to america and steal the wealth of old amercan grannies hidden under the bed. To keep their system working and the hand of corruption greased by profit But even had they lasted and” liberated” America today they would now find little saved under the mattress now .As a different group of state capitalist theives got there first.
Just goes to teach Americans that man cannot live on plunder alone unless your part of the rich.
And the third world does not owe americans a living and a free ride The dollar hegemony system is collapsing and Obama greasing the hand of corruption resembles a drunken corrupt Yeltsin. While war -Munger and the other super rich who make their money speculating on the wall st casinos gambling on derivatives lecture all americans on the glory of the old days by teaching parables on how their own hard work made them rich and now is the time for all americans to practice self restraint and stop the collective wanking so the recovery can take effect. And why ‘we’ the ‘international community” need to bomb Iran to save the world and the human rights of Iranians and all the other foreign diversions and wars against people who now jealously hate amerikan freedom.
I notice an upsurge on putting the blame all our problems on the lazy blacks and Mexicans recently . Just like the good old days.
But I luv this website on the daily follies and funnies of amerika going down.
Yeah, like Canada is in any better shape than the US. I think you guys are as blind as the zombie sheep here in USA. If we fall, then you fall. Just like dominoes.
ReplyDeleteWhy invade Canada? Better to move south.
ReplyDeleteCasimir Cypher was a Franciscan Priest, working in Honduras in the 70's. He dedicated his life to the poor and basic human rights. The rich land owners hated this mam. Casimir came to town one day with a few of his poor followers. He was murdered in the street by a bunch of thugs, hired by the rich land owners. The rich wanted the poor to stay poor and anyone with a different idea, was eliminated. It's no different today. The rich are pushing the middle class, further and further into poverty.
Those who resist, will be killed or captured and sent to a FEMA camp.
Anon 2:08, I couldn't agree more about what you say about Munger.
ReplyDeleteYeah, he sure as hell talks a good game about "steady 3%", but the reality is he and people like his boss Buffett were making gazillions on even higher return rates speculating and gambling on the economy.
Tell me again, just what does Buffett make? For cryin' out loud people these guys are holding companies and nothing more. Sure, some of what they hold are making some widgets, but let's be real. It isn't like Munger has found the cure for cancer or the Fountain of Youth. Heck, Buffett owns a stake in Geico Insurance, which I am sure pays out timely and in full all the time. Removes tongue from cheek!
It is bad enough they make this kind of money doing nothing, but then to preach the opposite. UGGGGGGGGGGGGGGGGGGGGGGGGGH, the hypocrisy is just crazy!
5:02. as being a Canadian, I totally agree with you. When I talk to women about what is going on, they literally cover their ears saying they do not want to know and a few of them have literally ran away from me.
ReplyDeleteThe men I talk to will listen and may digest some of what I say, but unless I keep an underlining tone geared more to survival skills, their eyes get that glossy look of disinterest.
My own husband just nods his head like he is agreeing and knew it all along when I start a topic, but he has no interest in actually believing.
A few people are curious now about what more I may have to say, but it is only because they lost their jobs and are wondering why they have to wait 2 months to collect welfare. (True)
a better link to the article since I can't get article on MoneyNews to display.
ReplyDeletehttp://www.slate.com/id/2245328/
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ReplyDelete