Comments on: Why Warren Buffet Has Never Been More Wrong http://www.theundergroundinvestor.com/2008/05/05/why-warren-buffet-has-never-been-more-wrong/ The definitive investment blog for investment news not discussed in the mainstream media Thu, 08 Jan 2009 12:51:06 +0000 http://wordpress.org/?v=2.7 hourly 1 By: J.S. http://www.theundergroundinvestor.com/2008/05/05/why-warren-buffet-has-never-been-more-wrong/comment-page-1/#comment-27835 J.S. Tue, 13 May 2008 02:31:59 +0000 http://www.theundergroundinvestor.com/2008/05/05/why-warren-buffet-has-never-been-more-wrong/#comment-27835 Hi Student, I'll take a stab at your question. I'm sure that you've heard of the cliche "Absolute power corrupts absolutely". Though a cliche, history has proven this statement time and time again, and that is the danger of allowing too few hands to control a certain segment of society, especially one as important as the global financial system. For example, when a process becomes undemocratic, then decisions are made only for the interests of those "few hands" and not the hundreds of millions of citizens of a country or the billions of citizens of the world. This is precisely why the UK refused to adopt the Euro as their currency although all other members of the EU did. They didn't want to be subject to the whims of the "few hands" though along with Germany, they undoubtedly are among the "few hands". Still they wished to maintain the sovereignty of their domestic currency. Currently, the "few hands" of the U.S. Federal Reserve are creating soaring rates of inflation in every major market of the world through the debasement of the dollar due to the fact that other countries keep their currencies pegged to the dollar. History tells us that concentration of power in just a few hands always leads to situations whereby the needs of the people are never served, instability arises, and crisis occur. Hi Student, I’ll take a stab at your question. I’m sure that you’ve heard of the cliche “Absolute power corrupts absolutely”. Though a cliche, history has proven this statement time and time again, and that is the danger of allowing too few hands to control a certain segment of society, especially one as important as the global financial system. For example, when a process becomes undemocratic, then decisions are made only for the interests of those “few hands” and not the hundreds of millions of citizens of a country or the billions of citizens of the world.

This is precisely why the UK refused to adopt the Euro as their currency although all other members of the EU did. They didn’t want to be subject to the whims of the “few hands” though along with Germany, they undoubtedly are among the “few hands”. Still they wished to maintain the sovereignty of their domestic currency. Currently, the “few hands” of the U.S. Federal Reserve are creating soaring rates of inflation in every major market of the world through the debasement of the dollar due to the fact that other countries keep their currencies pegged to the dollar.

History tells us that concentration of power in just a few hands always leads to situations whereby the needs of the people are never served, instability arises, and crisis occur.

]]> By: Student http://www.theundergroundinvestor.com/2008/05/05/why-warren-buffet-has-never-been-more-wrong/comment-page-1/#comment-27819 Student Mon, 12 May 2008 21:34:10 +0000 http://www.theundergroundinvestor.com/2008/05/05/why-warren-buffet-has-never-been-more-wrong/#comment-27819 I understand that by empowering the bigger financial firms, buying Bear Stearn from JP Morgan, the fed has made the situation worse. But I couldn't quite understand clearly why it is necessarily riskier to let less hands to have more power. Could anyone please explain? I understand that by empowering the bigger financial firms, buying Bear Stearn from JP Morgan, the fed has made the situation worse. But I couldn’t quite understand clearly why it is necessarily riskier to let less hands to have more power. Could anyone please explain?

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