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March 4, 2014
Sovereign Valley Farm, Chile
Warren Buffet sees a different America than I do. I would wager he sees a different America than untold millions of people do too.
And with due respect to the kind-hearted Mr. Buffet, who is undoubtedly an accomplished and savvy investor, the man has been a major beneficiary of the greatest monetary fraud ever pulled in the history of the world.
In his most recent annual report just released yesterday, Mr. Buffet lauds the United States of America, writing:
“Indeed, who has ever benefited during the past 237 years by betting against America? If you compare our country’s present condition to that existing in 1776, you have to rub your eyes in wonder. And the dynamism embedded in our market economy will continue to work its magic. America’s best days lie ahead.”
Such language is typical for Mr. Buffett, he is one of America’s biggest cheerleaders. Again, with good reason.
For one, the unprecedented monetary expansion over the last decades has created a major boon for Mr. Buffet and his net worth.
His company Berkshire Hathaway has a balance sheet worth $485 billion. 25% of that is simply invested in the stock market with big chunks of Coca Cola and American Express.
These stock prices have boomed in an era of unprecedented money printing, adding billions to Mr. Buffett’s net worth.
Second, it’s important to note that over 75% of Berkshire’s revenue comes from highly regulated, absurdly profitable, tax advantageous businesses that are simply not accessible to the average guy.
For example, Mr. Buffett gleefully writes about the $77 billion ‘float’ from his insurance businesses.
This is money that is collected from insurance customers. And while he might have to pay out insurance claims someday, for now he gets to borrow from that kitty at 0% and generate higher returns elsewhere.
On top of this, Mr. Buffett has been able to defer a full $57 billion in tax, indefinitely kicking the can down the road on his IRS bill thanks to industry-specific tax rules.
Again, you and I couldn’t do this because we don’t have access to these special privileges. Warren Buffett does.
Warren Buffett also has special access to lawmakers in the US who clamor to be in his favor.
During the early days of the financial crisis in 2008, for example, Buffett was getting desperate phone calls from the Treasury begging him to make investments in the financial system.
And as a result, he was able to arrange sweetheart deals, brokered by the US government.
It also may just be a wild coincidence that the US government has rejected the Keystone XL pipeline… and Mr. Buffett’s railways just -happen- to be among the prime beneficiaries.
Yes, I think if we all had the special privilege, access, and benefit that Warren Buffett enjoys, we too would all be jumping for joy about America.
But Uncle Warren lives in a different America– the America of the past.
With due deference to his investment acumen, Mr. Buffett should know that no nation in history has been able to -permanently- stand atop the world’s economic mountain.
Like human beings ourselves, nations also rise, peak, and decline. It is their own life cycle.
And the America that Mr. Buffett doesn’t acknowledge is the one that is in debt past its eyeballs.
It is the America that spies on its citizens and threatens people with imprisonment for victimless crimes and administrative transgressions.
It is the America that conjures trillions of paper dollars out of thin air in total desperation, sending the labor force participation rate to multi-decade lows.
It is the new America that exists for a tiny elite at the expense of everyone else.
A Vital Message from Venezuela – “They Talk Like Marx, Rule Like Stalin…” | A Lightning War for Liberty
The following quote written on a piece of cardboard from the ongoing protests in Venezuela basically summarizes how the oligarchs, or the 0.01%, and their political henchmen rule in all countries around the world at the moment. Then theycry like little welfare babies when people criticize their behavior.
They speak like Marx
Rule like Stalin
And live like Rockefellers
While the people suffer
Warren Buffet is the absolute master of the above tactic, which is why I once wrote about him being: A Wolf in Sheep’s Clothing.
Exclusive: Permit Shows Bakken Shale Oil in Casselton Train Explosion Contained High Levels of Volatile Chemicals | DeSmogBlog
On January 2, the Pipeline and Hazardous Materials Safety Administration (PHMSA)issued a major safety alert, declaring oil obtained via hydraulic fracturing (“fracking”) in the Bakken Shale may be more chemically explosive than the agency or industry previously admitted publicly.
This alert came three days after the massive Casselton, ND explosion of a freight rail train owned by Warren Buffett‘s Burlington Northern Santa Fe (BNSF) and was the first time the U.S. Department of Transportation agency ever made such a statement about Bakken crude. In July 2013, another freight train carrying Bakken crude exploded in Lac-Mégantic, vaporizing and killing 47 people.
Yet, an exclusive DeSmogBlog investigation reveals the company receiving that oildownstream from BNSF — Marquis Missouri Terminal LLC, incorporated in April 2012 by Marquis Energy — already admitted as much in a September 2012 permit application to the Missouri Department of Natural Resources (DNR).
The BNSF Direct “bomb train” that exploded in Casselton was destined for Marquis’ terminal in Hayti, Missouri, according to Reuters. Hayti is a city of 2,939 located along the Mississippi River. From there, Marquis barges the oil southward along the Mississippi, where Platts reported the oil may eventually be refined in a Memphis, Tennessee-based Valero refinery.
According to Marquis’ website, its Hayti, Missouri terminal receives seven of BNSF Direct’s 118-unit cars per week, with an on-site holding terminal capacity of 550,000 barrels of oil.
Marquis was one of many companies in attendance at a major industry conference in Houston, Texas in February 2013, called “Upgrading Crude By Rail Capacity.” Its September 2012 Missouri DNR permit application lends additional insight into how and why BNSF’s freight train erupted so intensely in Casselton.
Rather than a normal permit, Marquis was given a “special conditions” permit because the Bakken oil it receives from BNSF contains high levels of volatile organic compounds (VOCs), the same threat PHMSA noted in its recent safety alert.
Among the most crucial of the special conditions: Marquis must flare off the VOCs before barging the oil down the Mississippi River. (Flaring is already a highly controversial practice in the Bakken Shale region, where gas is flared off at rates comparable to Nigeria.)
It’s a tacit admission that the Bakken Shale oil aboard the exploded BNSF train in Casselton, ND is prone to such an eruption.
“Hazardous Air Pollutant (HAP) emissions are expected from the proposed equipment,” explains the Marquis permit. “There will be evaporative losses of Toluene, Xylene, Hexane, and Benzene from the crude oil handled by the installation.”
In a December 31 Google Hangout conversation between actor Mark Ruffalo, founder of Water Defense, and the group’s chief scientist Scott Smith, Mr. Smith discussed the oil samples he collected on a previous visit to North Dakota’s Bakken Shale.
“What I know from the testing I’ve done on my own — I went out to the Bakken oil fields and pumped oil from the well — I know there are unprecedented levels of these explosive volatiles: benzene, toluene, xylene,” said Smith.
“And from the data that I’ve gotten from third parties and tested myself, 30 to 40 percent of what’s going into those rail cars are explosive volatiles, again that are not in typical oils.”
“It all starts with scientifically and transparently understanding exactly what is in these crude oils, and working to set new safety standards to protect human lives and all waterways, wetlands, marshes and sensitive ecosystems.”
It may be the dead of winter in North Dakota, but the Casselton explosion has shined a bright light on the myriad serious threats of Bakken oil rolling down the tracks through the backyards of thousands of Americans. The industry’s secrecy about the explosiveness of this oil just went up in flames.
But how will the public react to the news that industry knew this could happen all along? With the Dec. 30 explosion in Casselton, and the deadly Bakken oil train explosion in Lac Megantic, Quebec last July, all North Americans ought to question the wisdom of extracting and transporting this highly dangerous oil.