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Tag Archives: Federal Reserve

Guess Who Makes More Than Bankers: Their Regulators

Government work is pretty good for the most part. (There’s the whole selling your soul aspect, but that aside. — I kid. I kid.) The pay is far above average. Union protections mean you basically can never be fired. The pension comes early, is forever, and is backed by the US taxpayer. Civil servants have it pretty darn good. Government employees on average earn over $120,000 in total compensation. Banking regulators make on average far more than this.

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‘Why is Warren Buffett so rich? (Crony capitalism, anyone?)’

Interesting article. It is very true that the Oracle of Omaha has benefited handsomely from sweetheart deals and political connections over the years. He has played the crony game very well.

I will say though, as much as I agree with the general sentiment of the author, I’d still go long on the USA before Kazakhstan. We do still enjoy the reserve currency of the world. As long as we do the bet is still to the upside for US equities generally. Reserve currency status is the linchpin. If you ever hear that the US dollar is no longer the reserve currency it is time to sell. Of course when we hear it it will be too late.

An aside. – My first real job was working for GEICO (One of Warren Buffett’s companies. His “cash cow” as he calls it.) selling insurance over the phone. To this day – “Thank you for calling GEICO Direct. This is Nick Sorrentino speaking. How can I help you?” – rolls right off the tongue.

(From Nomad Capitalist)

…allow us to examine just how Warren Buffett became so wealthy, because while he is obviously an astute investor responsible for generating huge returns, he has also enjoyed advantages few other Americans do.

It is such advantages, propped up by his cronies in government, that perhaps contribute to so much of his optimism.

To begin with, much of Berkshire Hathaway’s holdings are in the equities markets. While Buffett has done an excellent job over the years of picking winners and losers, he has no doubt benefitted from the amazing impact that inflation – and recently endless money printing – have had on the American stock markets.

Click here for the article.

Just a great infographic: The History of Taxes in the USA

The maximum tax rate in 1915 (before World War I and the institution of the Federal Reserve and broad income tax) was 7%. The maximum tax rate after 30 years of uncontrolled government, 2 World Wars and an emerging system of crony capitalism driven by the Fed? 94% in 1944. Insane. It just goes to show how powerful statism was during the mid-20th Century. In many ways, a very dark time for the world.

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18 Stats That Prove That Government Dependence Has Reached Epidemic Levels

The corporations are on welfare and so is a large portion of the US citizenry (and non-citizenry too it must be acknowledged).  Votes are bought with a program. Politicians are bought with fat feline donations. The state expands. Everyone it seems has a hand in the till. Everyone it seems has an angle. The welfare state, leviathan, is ever-present. And to challenge the monster is to challenge the way of life of many who have long ago made peace with (in some cases) or cozied up with (all too often)  the beast.

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