Another warning about the dollar’s decline. Warren Buffett writes: “Even in the U.S., where the wish for a stable currency is strong, the dollar has fallen a staggering 86% in value since 1965, when I took over management of Berkshire [Hathaway]. It takes no less than $7 today to buy what $1 did at that time.” This “invisible inflation tax” is devastating the value of bonds. In fact, he warns, “Right now bonds should come with a warning label.” I agree. Caveat emptor.
Right-to-work wins big in Indiana. Congratulations to voters and workers in the Hoosier State. Last month, Indiana became the 23rd state to enact right-to-work legislation, freeing employees from any requirements to join a union or pay union dues as a condition of employment. The unions are furious, of course. The International Union of Operating Engineers Local 150 filed a lawsuit Wednesday in U.S. District Court, asking a judge to block Indiana’s new right-to-work law from being enforced. Time will tell if the courts give them a victory that the Legislature wouldn’t.
This Fed president likes gold. Richard Fisher, the president of the Federal Reserve Bank of Dallas, has warned in the past that Ben Bernanke’s low-interest rate policies will fuel inflation. Now, it turns out that his investments confirm his concerns about the dollar’s decline. Fortune reports that Fisher has more than $1 million invested in a fund that tracks the price of gold. He is also heavily invested in real estate and other commodities, including $250,000 worth of uranium.
Pat Buchanan gets the ax. The powers-that-be at MSNBC finally decided to part ways with conservative commentator Pat Buchanan. The only surprise is that Buchanan lasted so long, but his 10-year run on the very liberal network is now over. Apparently, his latest book, Suicide of a Superpower, was the final straw. It contained a chapter titled “The End of White America.” MSNBC president Phil Griffin said he didn’t believe the book “should be part of the national dialogue, much less part of the dialogue on MSNBC.”