20MillionDinar

Who’s an Uncivilized Jerk? By Andy Hecht, Senior Commodities Editor Dear Sovereign Investor, Berkshire Hathaway’s annual meeting is always a circus and this weekend in Omaha, Nebraska, was no exception. Chairman Warren Buffet and his chief henchman, Vice Chairman Charlie Munger, held court and answered questions for five hours. But this time, they made some of their craziest comments yet. Munger said: “Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939, but civilized people don’t buy gold – they invest in productive businesses.” Is he saying that Jewish families in Vienna in 1939 were not civilized? Or is he saying it is “uncivilized” to buy gold? Either way, I think he’s a jerk – on both counts! Berkshire Hathaway Claims to Hate Gold There is no doubt that Buffet’s track record is impressive. Recently, the so called “Oracle of Omaha” has become a spokesman for higher taxes. President Obama has even nick-named his tax-raising plan the “Buffet Rule.” Certainly, Buffet has never been shy when it comes to gold as an investment. In October 2010, he said, “You could take all the gold that’s ever been mined, and it would fill a cube 67 feet in each direction. For what that’s worth at current gold prices, you could buy all – not some – all of the farmland in the United States. Plus, you could buy 10 Exxon Mobiles, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?” As an investor, Buffet has a point of view, and of course he’s entitled to that. I simply don’t agree with him. And here’s just one small reason why: since October 2010, Exxon Mobile’s share price climbed by around 27%. However, gold appreciated by 57% over the same period. The Oracle of Omaha prefers Exxon Mobile. Which would you choose? Duh… Last year, 88-year-old Munger said: “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.” This weekend Munger took his vitriol to a new level when he raised the specter of Vienna in 1939. Think gold vs. Exxon Mobil. Who’s a jerk? I guess Munger forgot that Berkshire bought 130 million ounces of silver in 1997 and pocketed several hundred million from the deal. But Why Do They Own Jewelry Businesses? Munger seems also to have forgotten that Berkshire Hathaway has significant stakes in two jewelry companies – Ben Bridge Jewelers and Borsheims Fine Jewelry. These companies sell gold and, as a stakeholder, Berkshire profits! Does Munger regard his customers as uncivilized jerks? Why the anger at this investment vehicle Charlie? What about the central banks of the world who hold gold as a reserve asset? Are they also jerks? Central banks added almost 20% of all new gold production to reserves last year. Are they uncivilized? I don’t really get his unabashed anger toward gold, an object that has been a store of wealth for centuries. An essay written by Howard Buffet, the Oracle’s father, in 1948, noted: “Human freedom rests on gold redeemable money.” In this essay, the elder Buffet went on to say that paper money systems generally collapse in economic chaos. He also wrote that a gold standard would restrict government spending and give people greater power over the public purse. Is it possible that a $16 trillion U.S. deficit and a huge ongoing debt crisis in Europe constitute a degree of economic chaos? Was Howard Buffet also an uncivilized jerk? Munger and Buffet are public relations machines and they use their considerable influence to sway public opinion. Some of our political leaders rally them on as public pawns. Munger and Buffet provide justification for Washington’s continued printing of worthless currency and tax-raising forays. The Oracle and his sidekick don’t seem to understand that gold is not an investment – it is a currency, the ultimate currency! The price of gold simply reflects the economic mess we are in today. And let’s not forget Buffet and Munger are master manipulators. They invest in companies on a different level than you and me. When they make an investment they often get a special kicker, a huge dividend. When he invests in a company, Buffet, through Berkshire Hathaway, structures a convertible preferred stock that ordinary humans cannot buy. We can participate in his investment only by purchasing stock in Berkshire Hathaway. And when scandal hits their company, the press, regulators and politicians turn the other cheek. For example, David Sokol, an heir apparent, last year bought stock in specialty chemicals manufacturer Lubrizol two months before Berkshire Hathaway invested in the company. Sokol, who recommended the company to Buffet, stood to make a pretty penny from Berkshire Hathaway’s investment in Lubrizol. Didn’t Buffet ask if Sokol had an interest in the company at the time? Berkshire and Sokol parted ways in the wake of the Lubrizol affair. Meanwhile, Munger also owned stock in a company called BYD, a Chinese auto maker. Munger held the stock for a few years before suggesting that Berkshire invested. Isn’t this the same situation as the Sokol affair? I guess not. When you are Warren Buffet and Charlie Munger the rules are different. The SEC decided not to bring a case against Sokol, even though they surely would have done so if it were you or me. Nothing More than a Public Pawn Being a public pawn has its advantages. You get to avoid scandal, invest on better terms than everyone else and there’s even the possibility of manipulating markets through outrageous comments. My advice here is simple: Forget what Charlie Munger and Warren Buffet say. They have been saying the same thing for a decade and gold has just gone higher. If gold dips buy it. And if you have any doubts, consider this: Since January 2002, Berkshire Hathaway’s share price has climbed 65% and gold is up 483% over the same period. Who is the uncivilized jerk, Charlie? Your eyes and ears in the commodities market, Andy Hecht P.S. Fiat currency instability is driving the price of gold and it’s only going to grow stronger. I see another commodity in particular that’s in the perfect position to take a meteoric rise in value in the coming years because of it – natural gas. I see natural gas looking a lot like silver did twenty years ago… before it went on an 800% climb. To find out how you can profit from natural gas’s coming boom, click here.

Adam, I completely understand. Thank you for taking the time out to answer my question.

Hi McJocky, No, these are not my words. I actually frequent a EUR/USD thread at FOREX Factory and this was posted this morning by a very well respected member. I don't know if this was his wording, or if he got some of it from somebody else, but I thought I would bring it over here to DV for anybody who was interested. Somebody asked him for his Fundamental views on the Euro less than 24 hours ago and the above is what he responded with. I thought it was a good read!

Fundamentals for the Euro: Here are the negatives (in brief) for the Euro... 1. The Fiscal pact between Euro Zone nations is crumbling because the periphery nations cannot take any more austerity measures. It is a political mess and it is hurting the economies. What they need is QE but the ECB cannot do that. Europe is a unique case. All CBs around the world are loosening monetary policy to help stimulate growth and the EZ is doing nothing for growth. 2. The Euro Zone also has a very serious debt problem which they cannot solve without growth. Other nations also have debt problems but their CBs have the flexibility of controlling monetary policy to stimulate growth. The ECB does not. 3. The leading economy in Europe is Germany and they are slowly limping along. The other countries are far worse off than they are. Even Mario Draghi (President of the ECB) has said that there are significant downside risks to the economy in the Euro Zone as a whole. This is furtherbacked up by the econ data which clearly shows an increase in unemployment and decrease in consumer confidence as well as a decrease in the manufacturing and services PMIs 4. Spain is in deep deep trouble and Italy is not too far behind them. With rising unemployment of epic proportions not see in many many years coupled with severe austerity measures, they are all but doomed. Spain is a big and important economy in Europe but not enough to bring down the house of cards. However, Italy is a very different story. If the focus of the debt crisis turns to Italy (and I am sure it will soon), things will get very nasty. Currently there is enough noise from Spain to keep the media focused on it leaving Italy largely ignored... for now. 5. In the next few months certain political events will unfold which will decide if the EuroZone economy and debt crisis will improve or get worse. These events will have a correlating effect on the value of the Euro. Currently the outlook is negative and the risk is to the downside. If that changes in the near term, I will be extremely surprised. Here are the positives (In detail) for the Euro... 1. Europe has enough wealth and resources to correct the problems on its own within the next 3 to 5 years. However, they are missing the political will to get it done. Some changes in government may set things on the right path... Maybe

Hey FreckledFuzz, Nice post! I'm personally all in for this plan for the Euro!

WW. Thanks for the post. Yes I do believe in The Bible. I wish I would have read this about 2 minutes ago as I just replied in the New Financial System thread. But, I think that will be my last one in that particular thread. Thanks again, I actually needed to be reminded of this. The timing couldn't have been better. Thanks again WW.

Please give me all of the proof about the "50 Trillion Dollar Mistake" if possible. This article says: "Since the US Treasury or the Federal Reserve were holding 7.5 Trillion IQD the potential gain to the US Treasury was between 33.8 Trillion – 92.1 Trillion Dollars." Do you honestly think that 7.5 trillion Dinars was going to be worth up to 92.1 Trillion!!!!!????? OMG, you have got to be kidding me, that means each Dinar would be worth like $12. How is this a fact Carlos? This sounds like that one rumor from Okie a while back... Due to the fact that "nobody knows where the 7.5 trillion Dinar went" just blows my mind. BUT, they KNOW for a fact that the US has it. Please show me where, when, and how they got the dinar. I need facts Carlos. Thanks. Another excerpt from the article: What is known is that along with the 7.5 Trillion IQD the US was given the right to buy Iraqi oil at approximately 30 dollars per barrel after a stipulated holding period rather than at market rates. The exact terms of this Bush/Cheney agreement are allegedly confidential. OK, above is another interesting "fact" or opinion I should say because the agreement is confidential. This means nobody can prove it as fact, however, this guy Benjamin Fulford somehow knows... Only problem is, it is not verifiable. How convenient for him... The few above reasons is why I say this piece was an opinion piece, if you can't see that, then I can't help you. Call it factual if you want, but I can't! Fiat Currency: All I did was simply show you an example of Fiat currency that existed 1000 years ago. You said you had never heard of any, so I showed you. The fact that it didn't last means nothing. No Fiat currency has lasted forever, this is a fact. However, old Fiat currency is always replaced with a new one. Never, in the past 1000 years, has a currency been asset backed. Even here in the USA, we have already gone through a few different currencies since our inception. But, we never transitioned over to an asset backed currency, nobody ever has since the inception of fiat currency. That is the point I was making. So, to me, I would think if the USD crashes, it is more than likely a new fiat currency will be born... What you are stating has never been done and is known to people who follow the sites that you follow. For some reason, nobody else knows about it, including professional FOREX traders, bankers, professors of economics, etc... I am not trying to "gain the upper hand" as you put it, or only try to win. I am bringing my side of the story to this thread. You guys are taking what Benjamin Fulford says as truth when nothing can be proven. Everybody he refers to is secretive, all of the information is confidential, but yet you believe it no questions asked. This sounds like people who believe everything the main stream media says as truth. What is the difference Carlos? None of what he is saying is Factual as you put it! They are his opinions at best... If there is any doubt or gray area in the definition then consider that: when something can be corroborrated by several people either in an opinion or a news item then, the evidence establishes if the article is truthfull or not. So according to you, as long as Okie, Bulldog, and other Gurus can all confirm the same rumor then it means it is a fact. It is pretty clear that this is what you are saying. I think it is actually a little sad as 3 pumpers confirmations do not mean the rumor is truthful.

Congratulations! I'm hoping to get into real estate within the next few years. Right now I'm ust trying to build up my capital and make sure my credit is stellar by then. Hope inflation doesn't get too out of control by the time I am ready!

I am wondering if VIP offers any investment opportunities to people with extra money right now? Or, are the investments only available after a potential RV? Thank you in advance.

LOL. Thanks Umbertino. 55...nah you're still young my friend! Thank you for the compliments. I have always enjoyed learning and studying, especially when it comes to investments & economics. I guess I have always been an entrepreneur by nature.

The dong is a good candidate for a "potential RV" as it is easy to pump due to the fact that it has a bunch of extra 000's... Dealers tapped into the Dinar hype and added another currency to their sales list, the Dong. Fact is: Vietnam has THE LARGEST MONEY SUPPLY in the entire world! They have quadrillions of dong in circulation! It wouldn't make sense for it to be worth much more than it is. Most people (who don't understand basic economics) don't understand that currency is based off of a few major factors. The two biggest factors are MONEY SUPPLY & GDP. I would say the Vietnam Dong is valued just about right where it's at right now. It might have a little room for growth if they start increasing exports but not much... Their money supply is just way too big.

I think you're right with both of your assessments. 1) People are worried about all of the evidence pointing towards a re-denomination. However, it could be only propaganda. 2) If they do not "LOP" then I believe we will see gradual increases in the value of the Dinar. I wish I knew why they were not doing it already... Do I have any bargains? No... Sold a ton of Dinar a few months back, but kept a nice chunk just in case it goes down the way we all hope!

Carlos, Thank you for the response. However, this was not an official news event. If you google "50 Trillion Dollar Mistake" you will see it linked to basically 2 websites which reference to Benjamin Fulford and a Dinar forum. By the way, the article this was based off of was definitely an opinion piece. http://2012indyinfo.com/2012/04/19/benjamin-fulford-obamas-50-trillion-dollar-mistake/ Doesn't it seem a little silly for China to accept 7 Trillion for ALL of the debt? I mean, it is really less than $7 Billion. That is a drop in the bucket! This doesn't make any sense... They could just buy Dinar from the CBI for 4 Billion and still make us pay how ever many trillions we owe them. LOL I guess the human mind can spin any event into what they want to believe, as long as it fits their agenda, this whole forum is evidence of it as the reasoning behind the Dinar RV varies from person to person greatly. Some reasons are insane! If the white hats and white dragon would actually reveal themselves it might add a little more credibility, but it is very cryptic and sketchy to say the least. Fiat Currency: Early History The Song Dynasty in China was the first to issue paper money, jiaozi, around the 10th century AD. Although the notes were valued at a certain exchange rate for gold, silver, or silk, conversion was never allowed in practice. The notes were initially to be redeemed after three years' service, to be replaced by new notes for a 3% service charge, but, as more of them were printed without notes being retired, inflation became evident. The government made several attempts to support the paper by demanding taxes partly in currency and making other laws, but the damage had been done, and the notes fell out of favor.[8] The successive Yuan Dynasty was the first dynasty in China to use paper currency as the predominant circulating medium. The founder of the Yuan Dynasty, Kublai Khan, issued paper money known as Chao in his reign. The original notes during the Yuan Dynasty were restricted in area and duration as in the Song Dynasty. However, in the later course of the dynasty, facing massive shortages of specie to fund their ruling in China, the Yuan Dynasty began printing paper money without restrictions on duration. This eventually caused hyperinflation. By 1455, in an effort to rein in economic expansion and end hyperinflation, the new Ming Dynasty ended the use of paper money.

Hugh, Why are you spending your time trying to belittle me? You calling me names in a public forum because you don't agree with what I have to say. Very immature. I'm sure most who read through this thread will see that. Also, you don't know what I do with my money. In fact, the more I get, the more I can give. Judge not, lest ye be judged. This thread obviously has run its course, you win.

You're one step ahead of me! LOL. It's too expensive in Hawaii for me to be able to buy at this time. Oh well, hopefully one day soon... I'm only 26 so I've got time!

Wow... How old are you?

Do you feel better? This comes from a guy who purchased Dinar with hopes of making money. Hey, doesn't this sound like a part of the current world financial system? Oh but wait, you guys now know that the Iraqi Dinar was transferred from Western Bankers to the "Good Guys" right? How convenient Hugh...

Wow... You clearly have no education in economics but due to the fact that you listen to the people you choose to listen to, you think you are right... I don't think I can carry on a sane conversation with you. You think people who watch main stream media are brainwashed? Take a look in the mirror Hugh, this is actually getting a little silly.

This is nothing like what happened with Kuwait! You can't seriously be making a comparison between Kuwait and Iraq. So what exactly do you think is going to happen with the Iraqi Dinar then? Basil 3: Where am I going with this? Well, wasn't it you who was talking about new currencies being backed by assets? The end of fiat money right. You said you have facts to back your position, well I have facts that back up that Fiat money will more than likely exist, its actually like 1000 years worth of proof.

I found the following fact pretty interesting and I wanted to share this with you. With all of the talk about Basil 3 Compliance around here I thought I would set the record straight. Basil 3 compliance is for banks, not currencies. If you google "Basil 3 compliant currencies" the only sites that pop up are Dinar sites! To me it looks a lot like another one of those "Forum Facts" that somebody made up. Unfortunately these things get tossed around and people believe it... Why is it that nobody else knows about this new concept? I guess people who hold Dinar are EXTRA special and more in the know about financial matters than everybody else in the world. What other reason could it be? I don't know about an Asset Backed Currency but I do know that Fiat currencies have been in existence since the 11th century, that is close to 1000 years!

Who told you this?

Just a heads up, I don't play the stock market. Most of my investments revolve around FOREX... Nice post though overall.

A Huge Opportunity To Profit From Runaway Inflation Most investors already know that buying gold and silver is a smart way to hedge against high inflation. And especially against Zimbabwe-like inflation where as recently as 2008 people literally hauled cash around in wheelbarrows instead of wallets. But many forget about the second best way to invest in a climate of high-inflation: Fixed- rate real estate debt. Here’s why... Inflation means there’s more money available in the system and it’s easier to get. Prices usually rise, but so do our incomes. When you hold a mortgage in a time of high inflation, our incomes rise but the amount we owe does NOT. So essentially the more inflation we experience, the easier it is to get money and pay off a mortgage that NEVER increases. During hyperinflation, money is so easy to get that you can pay off a fixed-rate mortgage possibly overnight... with just one wheelbarrow full of cash! So Mike is scrambling to secure as many fixed-rate mortgages as he can. And that means raising his credit score.

Well said, this was a good post. I believe we can hit them where it hurts, the problem is, people want the "cheaper prices" and don't want to think outside the box. People like to be spoon fed and will basically take whatever is given to them. Whether it be cheap fast food, cheap household materials (Wal-Mart), commercial banking, etc... If people want change, they need to make changes themselves.

You're right, kudos to him and thank God for capitalism!