Civilized People Should Buy GoldSubmitted by Charleston Voice on Wed, 05/09/2012 - 12:49
Why Civilized People Buy Gold
by Gary North
Tea Party Economist
"Gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939 but civilized people don't buy gold – they invest in productive businesses." ~ Charlie Munger
Charlie Munger is Warren Buffett's partner. He is 88 years old. You can see his remark in this brief extract from an interview on CNBC . [Munger's boss, Warren Buffett is known as the Godfather of Abortion Funding...CV]
That sounded clever. But cleverness can conceal a great deal.
Jews in Vienna were civilized people. Uncivilized people had been running the government ever since March 1938. The Nazis were in charge.
The trouble facing civilized people who are under the control of uncivilized people is that they suffer from an illusion. They don't understand the degree to which the uncivilized people are uncivilized.
Munger should have been more specific. The hypothetical Jewish family in question should have done a lot more than sew gold coins into their clothes in 1939. The head of the household should have sold his house and his business. He should have transferred all of the family's assets to Switzerland, England, or the United States. Then he should have directed the family to pack their bags and follow their money. After August 31, 1939, this became illegal. World War II broke out.
They should have begun the process no later than March 12, 1938, the day Germany's troops crossed the border. Here's why, according to Wikipedia.
Devoted to remaining independent but under considerable pressure from both Austrian and German Nazis, Austria's Chancellor Kurt Schuschnigg tried to hold a referendum for a vote on the issue. Although Schuschnigg expected Austria to vote in favour of maintaining autonomy, a well-planned coup d'tat by the Austrian Nazi Party of Austria's state institutions in Vienna took place on 11 March 1938, prior to the referendum, which they canceled. They transferred power to Germany, and the Wehrmacht troops entered Austria to enforce the Anschluss. The Nazis held a plebiscite within the following month, asking the people to ratify the fait accompli. They claimed to have received 99.7% of the vote in favor.
A FAMILY THAT GOT OUT IN MARCH 1938
I shall now tell a story known to a handful of people. It is the story of a man wise enough to get out: the Vice Mayor of Vienna, a long-term opponent of the Nazis. His name was Ernst Winter... Read more: Civilized People Should Buy Gold