Why Is Warren Buffett Keeping $34 Billion In Cash?

Warren Buffett bought 130 million ounces of silver between 1997 and 1998.

If the elitists agree that the time for the US dollar is up (and that time will come soon), he and his elite friends will sell their dollars, buying up all silver and gold, running up the manipulated gold and silver markets.

Silver and gold will skyrocket, the dollar will crash and then he will buy up everything in America for a few cents on the dollar, especially land.

Mission accomplished!



Warren Buffet, Arnold Schwarzenegger, Jacob Rothschild

NEW YORK (TheStreet) – Improving market conditions have been a major benefit for Warren Buffett, who has famously remained bullish throughout this long, arduous global economic recovery.

Now, as we head further into the year, the Omaha native is sitting on a mountain of cash, leading many analysts, commentators, and fans to speculate what the world’s third richest man plans to do with it. According to a Sept. 30, 2010 filing, Berkshire Hathaway(BRK.A) has $34.46 billion in cash.

While it is possible, the chance that Buffett would be satisfied simply standing by and watching his money pile continue grow in size is slim. In the past, he has clearly expressed his negative feelings towards the idea of holding cash as a long term investment.

In an interview on the Charlie Rose Show, Buffett insisted that although Berkshire Hathaway always has enough cash around, he sees cash as always being a bad long-term investment. He went on to say that he is typically unhappy when he finds that there is excess cash available.

Likening cash to oxygen, the legendary investor said it is important to know that it is around but unnecessary to have it in excess. Rather than have hoards of excessive cash on hand, he would rather own a strong business.

A more likely scenario is that Buffett’s massive cash reserves will be used to fund another big ticket purchase. Although the investor has tweaked the positions within his legendary investment portfolio on a number of occasions, he has not made a major purchase since Berkshire Hathaway announced that it was acquiring the remaining shares of Burlington Northern Santa Fe Railroad at the close of 2009.

Finding a suitable purchase is not easy endeavor for the investor, however. The Burlington Northern purchase highlights the challenges Buffett faces when seeking out opportunities.

Whereas Buffett could once generate strong returns by picking up small, undervalued companies, the pool of attractive investment opportunities has shrunk significantly as his firm has grown. Today, in order for a company to significantly impact Berkshire’s performance, it must be large. The small, fast-moving companies that pocketed the investor staggering returns in the past would barely make a dent in Berkshire.

There is a strong chance that Buffett would like to use his massive pile of cash to fund a new purchase. However, finding an attractive destination to sink his funds will be a difficult task going forward.

The financial newswires are buzzing this week in response to a recent Buffett-related article in Barron’s which forecasted that a dividend may be in the future for Berkshire Hathaway shareholders. Citing the company’s massive surplus of funds and the challenge of finding attractive acquisition targets, the author notes that a dividend could be one logical way the company could utilize its cash on hand.

Although Berkshire Hathaway has not traditionally paid out a dividend, Buffett is no stranger to distributions. On the contrary, the investor’s investment portfolio is loaded with notable income-paying positions such as Proctor & Gamble, Johnson & Johnson and Coca-Cola. Additionally, the investors’ personal investment portfolio boasts exposure to a number of yield-bearing firms which have provided him with a comfortable payout in recent years.

While attractive, many have been quick to point out issues such as the tax challenges Berkshire Hathaway and Buffett would face if they chose to offer a dividend.

These are only a few of Buffett’s available options and ultimately, it remains unclear how he will eventually choose to spend Berkshire Hathaway’s cash. However, given the massive size of his available funds, whichever route he chooses to take down the road will be exciting to watch.

Don Dion, The Street | Jan. 28, 2011, 11:39 AM

Source: The Business Insider

HSBC Profits Near Triple To $19 Billion

HSBC said profits nearly tripled last year to $19bn (£12bn) pre-tax – the highest earnings generated by a British bank since the start of the financial crisis.

Europe’s biggest bank said it had made a good start to the year but despite the strong figures the shares fell 3pc.

Analysts said the profits were about $1bn lower than expected. Sentiment was also affected a cut in the bank’s long-term return on equity target to 12pc-15pc from 15pc-19pc to reflect the tougher capital requirements for banks and global economic uncertainty.

“There’s disappointment because people got very, very excited about this stock … and the first thing that happens they’ve taken their return target down,” said Simon Maughan, analyst at MF Global.

The bank also announced the aggregate salaries and collective bonus pool of its 280 top staff globally – more than nine months before new rules imposed by the Financial Services Authority (FSA) require it to do so.

Key bankers were paid $374m in 2010, an average payout of $1.34m (£829,000). In Britain, 186 top staff received a total of $172.4m or an average of $926,882 (£575,000).

Read moreHSBC Profits Near Triple To $19 Billion

Gold Coiled – By June, the US Will Have Monetized 100% of All of The Debt Issuance – Hyperinflation May Be in the Cards

Ben Davies CEO of Hinde Capital out of London:

…..

Gold is rather like the US equity market right now, but an overbought market in the case of gold is a signal of strength because it is in a secular bull market. KWN readers need to remember that a market can remain overbought for a long period of time.

By June, the US will have monetized 100% of all of the debt issuance. This will lead to continued debasement of the US dollar. Fed Chairman Bernanke refers to commodity strength as a derivative of emerging market demand. This is the same man that suggested a savings glut from emerging markets was exporting deflation to the rest of the world a few years ago.

Actually as I said what we are experiencing is an ongoing debasement of the dollar and I don’t mean to bang on the same drum, but this is the reality and it is critical for readers to understand this important fundamental. This is why all risk assets are rising in price. The increase in the S&P 500 in this case is a precursor to a potential hyper-inflationary event. This befalls a country which runs such high expenditure to deficit ratios. All things equal, this will end badly.”

…..

On silver:

Right now it would appear that as the March/May spread is not moving wider, it is unlikely that we will experience commercial signal failure. Certainly open interest on the March contract is reduced to 4,000 contracts. Having said that, it only takes a few short contract holders failing to deliver to set off a short squeeze in the market.

Full article here: KingWorldNews

Pentagon: US Military Repositioning Naval And Air Forces Around Libya

See also:

West moves to help Libya uprising, Gadhafi digs in

U.S. Offers Aid to Libya Rebels as All Options Considered

Libya: US Demanded Clause In UN Resolution That Mercenaries Are ‘Immune From Prosecution For War Crimes’

More Libyan Bloodshed Could Prompt US, NATO Intervention: Analysts


WASHINGTON Feb 28 (Reuters) – The U.S. military is repositioning naval and air forces around Libya, a Pentagon official said on Monday, as international demands intensify for an end to Libyan leader Muammar Gaddafi’s four-decade rule.

“We have planners working and various contingency plans and I think it’s safe to say as part of that we’re repositioning forces to be able to provide for that flexibility once decisions are made … to be able to provide options and flexibility,” said Colonel David Lapan, a Pentagon spokesman.

“We’re still in that planning and preparing mode should we be called upon to do any of those types of missions, whether humanitarian and otherwise.”

Read morePentagon: US Military Repositioning Naval And Air Forces Around Libya

Egypt Bans Gold Exports For The Next 4 Months

CAIRO (Reuters) – Egypt on Sunday banned the export of gold for the next four months, a measure bankers said seemed aimed at preventing businessmen and former government officials who acquired capital illegally from transferring it abroad.

An official from a gold mine in Egypt said he was confident it was not aimed at gold production but at individual exports.

A decree banning the export of gold in all its forms, including jewelry and ornaments, was issued by newly appointed Trade Minister Samir el-Sayyad. It takes effect immediately and continues until June 30, the official news agency MENA reported.

“This decision, which comes in light of the exceptional circumstances the country is passing through …, is to preserve the country’s wealth until the situation stabilises,” MENA said.

Read moreEgypt Bans Gold Exports For The Next 4 Months

Global Economy? 23 Facts Which Prove That Globalism Is Pushing The Standard Of Living Of The Middle Class Down To Third World Levels

How many times have I said that the elitists want to turn the US into a Third-World country?

Far too many times …

… and I know that I am probably boring many of you, but I am repeating myself all of the time because there are so many new readers that only now woke up from their slumber.

Imagine their shock!

This is the Greatest Depression.


“When a country embarks on deficit financing (Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.
– Ron Paul


From now on, whenever you hear the term “the global economy” you should immediately equate it with the destruction of the U.S. middle class.  Over the past several decades, the American economy has been slowly but surely merged into the emerging one world economic system.  Unfortunately for the middle class, much of the rest of the world does not have the same minimum wage laws and worker protections that we do.  Therefore, the massive global corporations that now dominate our economy are able to pay workers in other countries slave labor wages and import the products that they make into the United States to compete with products made by “expensive” American workers.  This has resulted in a mass exodus of manufacturing facilities and jobs from the United States.

But without good, high paying jobs the U.S. middle class cannot continue to be the U.S middle class.  The only thing that the vast majority of Americans have to offer in the economic marketplace is their labor.  Sadly, that labor has now been dramatically devalued.  American workers now must directly compete for jobs with millions upon millions of workers on the other side of the world that toil away for 15 hours a day at slave labor wages.  This is causing jobs to leave the United States at an almost unbelievable rate, and it is putting tremendous downward pressure on the wages of millions of jobs that are still in the United States.

Read moreGlobal Economy? 23 Facts Which Prove That Globalism Is Pushing The Standard Of Living Of The Middle Class Down To Third World Levels

Iceland Channels Volcanoes to Win Europe’s Energy-Supply Race

See also:

Iceland Once Again Tells IMF, UK, Netherlands To ‘Go to Hell’; ‘Ice Torture’ Repayment Scheme Collapses

Here is what happens if you didn’t bail out the banksters:

Iceland: Economy Exits Recession



A pipeline sits at the Hellisheidi geothermal energy plant, operated by Orkuveita Reykjavikur, near Hengill volcano, in Hengill, Iceland.

Feb. 28 (Bloomberg) — Europeans left stranded at airports last year as an Icelandic volcano spewed ash across the continent may soon benefit from the power that seethes beneath the remote north Atlantic island.

Iceland is doing a feasibility study into building a 1,170- kilometer (727-mile) power cable to Scotland to send some of its untapped potential 18 terawatt-hours of geothermal and hydropower — that’s enough for 5 million European homes. The project has the full backing of the government, Industry Minister Katrin Juliusdottir said in an interview.

“Icelanders live with earthquakes and volcanic activity but the benefits are that now we can monetize these powers,” said Valdimar Armann, an economist at Reykjavik-based asset manager GAMMA, who estimates annual clean-energy exports could reach about a tenth of the island’s $12 billion economy.

The island is trying to emerge from Europe’s biggest banking meltdown this century to restyle itself as one of the European Union’s main sources of renewable energy. The power cable, which would be the longest of its kind ever built, would come as the EU strives to reach its target of 20 percent clean energy by 2020. In about 20 years, Iceland’s energy revenue per capita may rival that in Norway, where oil income has made its $540 billion sovereign wealth fund the world’s second-biggest, Armann said.

Read moreIceland Channels Volcanoes to Win Europe’s Energy-Supply Race

US: Natural Gas Wells’ Contaminated Water Hits Rivers

See this:

GASLAND Trailer 2010 (Documentary)

Those criminals destroy and contaminate everything for profit.



Wells for extracting natural gas, like these in Colorado, are a growing source of energy but can also pose hazards.

The American landscape is dotted with hundreds of thousands of new wells and drilling rigs, as the country scrambles to tap into this century’s gold rush — for natural gas.

The gas has always been there, of course, trapped deep underground in countless tiny bubbles, like frozen spills of seltzer water between thin layers of shale rock. But drilling companies have only in recent years developed techniques to unlock the enormous reserves, thought to be enough to supply the country with gas for heating buildings, generating electricity and powering vehicles for up to a hundred years.

So energy companies are clamoring to drill. And they are getting rare support from their usual sparring partners. Environmentalists say using natural gas will help slow climate change because it burns more cleanly than coal and oil. Lawmakers hail the gas as a source of jobs. They also see it as a way to wean the United States from its dependency on other countries for oil.

But the relatively new drilling method — known as high-volume horizontal hydraulic fracturing, or hydrofracking — carries significant environmental risks. It involves injecting huge amounts of water, mixed with sand and chemicals, at high pressures to break up rock formations and release the gas.

With hydrofracking, a well can produce over a million gallons of wastewater that is often laced with highly corrosive salts, carcinogens like benzene and radioactive elements like radium, all of which can occur naturally thousands of feet underground. Other carcinogenic materials can be added to the wastewater by the chemicals used in the hydrofracking itself.

Read moreUS: Natural Gas Wells’ Contaminated Water Hits Rivers

Bahraini protesters move to parliament building – Oman protests spread, road to port blocked – Congo coup attempt leaves six dead, say authorities – China’s jasmine revolution: police but no protesters line streets of Beijing – China’s working poor not yet ready to revolt – Chile President faces protests a year after quake

Bahraini protesters move to parliament building (Reuters):

MANAMA (Reuters) – Bahrainis campaigning for democratic reforms in the Gulf Arab state staged a protest outside the U.S. ally’s parliament building on Monday, demanding that all its members resign over protester deaths.

Seven people were killed and hundreds wounded in protests earlier this month by Bahrainis mainly from the majority Shi’ite Muslim community who complain of repression by the Sunni monarchy and Sunni ruling elite.

“We came to this parliament to say that you represent the people and you represent us — take an honourable position over the killings by the army,” said Mirza al-Shihabi, one of around 500 protesters outside the building in central Manama.

Oman protests spread, road to port blocked (Reuters):

(Reuters) – Demonstrators blocked roads to a main port in northern Oman and looted a nearby supermarket on Monday, part of protests to demand more jobs and political reform that have spread to the sultanate’s capital.

A doctor said six people had been killed in clashes between stone-throwing protesters and police on Sunday in the northern industrial town of Sohar. Oman’s health minister said one person had been killed and 20 wounded.

Hundreds of protesters blocked access to an industrial area that includes the port, a refinery and aluminium factory. A port spokeswoman said exports of refined oil products of about 160,000 barrels per day (bpd) from the port were unaffected.

“We want to see the benefit of our oil wealth distributed evenly,” one protester yelled over a loudhailer near the port. “We want to see a scale-down of expatriates in Oman so more jobs can be created for Omanis.”

Congo coup attempt leaves six dead, say authorities (Guardian):

Six people were killed in the Democratic Republic of Congo in what authorities said was a coup attempt on the presidential palace in the capital Kinshasa.

“We have witnessed a coup attempt,” the information minister, Lambert Mende, said.

“A group of heavily armed people attacked the presidential palace. They were stopped at the first roadblock. Our soldiers fought with them, arrested some of them and six people were killed.”

China’s jasmine revolution: police but no protesters line streets of Beijing (Guardian):

Police in Beijing and other cities mounted a major show of force following an anonymous call for protests inspired by the Middle East uprisings.

A US journalist was punched and kicked in the face and more than a dozen other journalists manhandled, detained or delayed as they covered the events which revealed official anxiety over similar protests against authoritarian rule in China.

Bloomberg Journalist Assaulted as China Heightens Security (Blommberg):

A Bloomberg News journalist was assaulted yesterday in Beijing while covering the deployment of police in response to online calls for protests in the Chinese capital.

At least five men in plain clothes, who appeared to be security personnel, punched and kicked the reporter at Beijing’s Wangfujing shopping street at 2:45 p.m. local time yesterday. They also took the video camera he was carrying and detained him in a roadside store.

Uniformed police arrived after the attack and escorted the journalist to a nearby station where he filed a report of the attack before seeking treatment for his injuries at a local hospital. Police returned the video camera while the reporter was at the station, saying a passerby had found it.

China’s working poor not yet ready to revolt (Guardian):

Like the Tunisian whose self-immolation sparked a revolt, Xu Mingao is a young street vendor. Fourteen-hour days selling flatbread in Zhongguancun – the capital’s Silicon Valley – earn him about 7,500 yuan (£709) a year.

Home is a tiny cubicle in a dusty, hastily constructed neighbourhood where adverts pasted to lampposts seek workers who can “eat bitterness” – endure the grind.

But the 30-year-old is “pretty happy” with his life: “The difference [from the old days] is huge. When I was small my family had to borrow money for my schooling and we wore hand-me-downs,” he said.

He and his wife have built a house back in their home town in Anhui with their earnings and hope for an office career for their boy.

Chile President faces protests a year after quake (Guardian):

Associated Press= SANTIAGO, Chile (AP) — President Sebastian Pinera marked Sunday’s anniversary of one of the largest earthquakes in recorded history by praising his government’s progress on reconstruction and calling for national unity.

Instead, his political opponents staged protests and questioned his numbers.