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The FDA and NOAA say that Gulf seafood is fine. President Obama ate a fish taco yesterday made with Gulf fish.
So does that mean Gulf seafood is safe to eat?
Some days ago, Business Week pointed out that "Warren Buffett shortened the duration of bonds held by his Berkshire Hathaway Inc. after warning that deficit spending could force inflation higher." As the article further pointed out, twenty-one percent of holdings including Treasuries, municipal debt, foreign-government securities and corporate bonds were due in one year or less as of June 30, Omaha, Nebraska-based Berkshire said in a filing Aug. 6. That compares with 18 percent on March 31, and 16 percent at the end of last year’s second quarter. The conclusion: "It may be a sign that Buffett expects interest rates to start rising, maybe sooner than the conventional wisdom." Yet very curiously, as we pointed out, another capital markets titan, Bill Gross with his trillion+ in fixed income securities courtesy of Pimco's numerous asset managers, has done precisely the opposite. As the chart below demonstrates, Gross' flagship Total Return Fund has been doing the inverse of Buffett, and has been actively increasing the duration of his bonds over the past two years, with the current blended maturity profile being the most long-end weighted in years: in fact the percentage of bonds maturing in 3 years or less is now the lowest it has been since October 2008. Using the above logic, it would signify that, unlike Buffett, Gross is now more primed for deflation than ever. In the great inflation-deflation debate, this will be the primetime heavyweight cagematch to watch. Between Buffett's empire and Pimco's FI monopoly, one of the two will have to lose. Our question of the weekend is who will it be?
I'll say Gross. And Hendry !
That is because you are a clueless fool.
Hardcore deflation leads to hardcore inflation even without a cent of money printing
I suggest you at least read this before you continue throwing the fool taunt around
http://www.jubileeprosperity.com/money-docto-and-counselor/faz9-cash-talks/
Let me ask you a question....
If there was no bailout in 08 and half of corporate America went bust, where would the tax revenue be coming from to service the US govt debt ?(If the debt is not serviced it gets sold off)
The only thing backing the dollar is the debt so we would have had hyperinflation by June of 09 without the bailouts.
Hey Spitzer,
You keep quacking like the aflac duck.
Your theoretical trades are WAY under water.
Your unprovoked name calling reveals your weakness.
Another internet tough guy who would pee his pants
if he had to deal.
on ignore.
Agreed. Deflation is the more likely outcome, so Gross is more likely to be right.
However, Gross also has a lot more to lose if he's wrong. The real value of Gross's bonds could fall to zero if Bernanke chooses the print button when the moment of truth arrives. Buffet's operating company has less downside even if he's wrong.
Disclaimer: I expect Bernanke will choose to stop printing when his back is finally against the wall.
Sancho:
"Disclaimer: I expect Bernanke will choose to stop printing when his back is finally against the wall."
I'm with you if BB is still at the helm. But, when his back is finally against the wall, does it have iron rings, oh about 2 meters apart to attach the two handcuff pairs, do they give him a blindfold and a cigarette? I know that's so un-PC. Did he get a chance to hit the loo before the finally time?
Does he get a chance to try to unwind acording to his theory? Or do they look at Morgenthau '37 and '38 and say, "Mr. Chairman, we have a situation to discuss."
I'm with Gross and Rosie on this, for now.
- Ned
Bernanke did back off from the print button last week.
...print button...
Well, there ya go. Printing money (whether by printing press on actual paper, or by computer) is one definition of inflation. Some folks consider paying more for corn flakes to be inflation. Before a discussion can begin the terms have to be defined, and they are not. One would have to take the "money" side, and another take the "price" side of the definition(s) in order to debate. There should be 2 different threads, one for each definition.
+1, but not two threads please. The fireworks will be much more interesting if it is to-and-frow in one place.
Might get to >600 posts, maybe set a record. And I'll bring the 100 octane ;-)
- Ned
nope, we don't need money printing to have hyperinflation. All we need is for the bond bubble to burst.
The effective real interest rate for housing is -35% price decline plus 5% mortgage, or 40%..
Buffett + Immelt = errand boys for Bankers
+1 And everybody loses ('cept the bankers).
I have the feeling lately that Buffett has been bent. He is shilling for the men behind the curtain. Just a feeling.
Yes--after all, Buffet endorsed O despite his anti-business positions and history, so clearly emotion or corruption is involved here.
Does it even matter who's right or wrong anymore ? The damage to the innocent is going to be outrageous. Right / wrong, who even cares ....... when the shit hits the fan, it's going to be CHARITY & LOVE that will count .... sincere regards to the wonderful people on ZEROHEDGE .
Buffett and Gross have different drivers than the rest of us as well as better access to information.
I'm going with japanese style stagflation. The elites have had a twenty year experiment going where the country's debt reaches 400% GDP, the population is behaving itself and while grumbling, willing to continue working at less and less in wages. They continue to print and people continue to buy bonds at 1%, though there are many foreign bonds available at better rates. Now, they are foregoing children to maintain a better lifestyle. Kind of like voluntary eugenics.
The upcoming generations of Americans have been TV and video trained for the same outcome and from all appearances, have no desire to rebel against anything. Look around, did you hear of riots in Detroit this summer? It's been hot...no money...falling apart...People have been happy as long as they get some federal enticement-printed debt. Bonds at 1% and less. GoM oilspill? no real complaints and the people of NO are clamoring for more drilling. No job growth for two years, more jobs are being offshored and....no complaints.
This is being extremely well managed, by very intelligent people, people with abundant resources that have been devoted to behavioral studies for 100 years (Aspen Institute, Rand Corp, et al).
People may be angry, but they have no idea where to focus it at. They are confused and looking for the next good pasture. Herd animals/herd instincts being driven by controlled and intelligent predators.
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