Warren Buffett’s worried.


Postage stamps of Weimar Germany, hyperinflati...

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How do we know? Because he’s been reading a cult book on monetary disintegration from the seventies – and telling everyone else to read it too. The book went straight to number one in the business books chart the minute it was re-released.

It’s called ‘When Money Dies.’  It was written by a Brit, Adam Fergusson (former Conservative MEP and adviser to Geoffrey Howe) and is about the economic crisis and money-printing in 1920s Germany. During the seventies people feared money printing as a way of tackling the economic crisis, and were horribly fascinated by what had happened in Weimar Germany – coincidentally a regime that Noam Chomsky recently referred to (see link below).

Today it’s the same story and that’s why the book’s top of the pops again.

How will this affect us in the UK?

Despite our own Government’s hard talk, if the rest of the world cranks up the printing presses again, so will we. I just can’t imagine any other scenario. By recommending Fergusson’s book, Warren Buffett is hoping that the authorities will see what happens when you resort to printing money… and he hopes the financial wizards won’t go crazy on magic Quantitative Easing. But frankly nobody knows how this will pan out.

Print money to avoid depression and you risk inflationary disaster. Alternatively maintain your currency and hope society can cope with austerity.

Has David Cameron learned anything from Nassim Taleb?

IF the current leadership can demonstrate that they know what they are doing, have a clear STRATEGY for UK and OUR interests at heart – not merely a thirst for power and a series of half-assed quick fixes justified by: how bad things are; how much debt they were left with; how the rest of the globe is fairing. However, IF these only served to appease the rating agencies and form a convenient smokescreen for the type of policies that NO-ONE voted for they will have shown themselves to be untrustworthy…they (refer Ulrich Beck link below) and WE will all pay a heavy price!

According to some of the rhetoric from Bank of England they have a handle on what is required but will they be able to implement it?

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