Hedging your bets: The Socialists' Way

Well it's a done deal. Barack is not a socialist because he thinks Warren Buffett would be a good policy wonk on his cabinet.

And some have said, even McCain thinks Warren Buffett would be a good policy wonk.

Senator McCain, two things, open ANWR and in the words of P Diddy; "Come on man", McCain, Warren Buffett as Secretary of the Treasury? Hell no.

Warren Buffett, is the guy who invested millions in PetroChina ( Darfur, Darfur, Darfur) when currency traders were hedging against the dollar in 2002, which led to the dollars' devalue and the rise in oil prices.

In an article written in 2002 by the Guardian titled,The prophets of profit it is stated:

Just one trade from Warren Buffett, the legendary oracle of Omaha; George Soros, the hedge fund speculator; or Prince Alwaleed bin Talal bin Abdul Aziz al Saud, the Saudi prince reckoned to be the richest man outside America, is, in the words of the Old Testament prophets, 'a sign'.

To understand the market is to follow the prophets, but their power is such that many of their movements are shrouded in secrecy. In the United States, share transaction announcements are delayed for up to six months because they spark mania bordering on anarchy.

But with currency speculation, impact is instantaneous. When on 28 June, Soros said the US dollar could fall 30 per cent by the end of the year, the dollar immediately collapsed to near parity with the euro. Soros's spokesman refused to say whether the fund operating in his name, Quantum, bet prior on a downward movement, but it's possible. Mind you, in subsequent weeks the dollar has clawed back losses. For Soros's sake, let's hope he 'covered his shorts'.

We have come to a point were we no longer export much. A weak dollar was argued would increase our exports, mainly to China to offset the trade imbalance.

That never came to be. China subsidizes just about everything.

As a side to this, I have a friend from Culiacan, Mexico and she will not buy anything from China. Interestingly she buys goods made in the U.S. She states they are the best product.

On the flip side, she states things in China are not made well. The tariff on certain goods helps, but she will not buy anything from China.

It always amazes me that U.S. autoworkers still support Democrats when you have this:

Chery cars made in China

Strong and Soros had big plans for the Chery in North America starting in 2007. They were going to flood the market and decimate Ford, Chrysler and General Motors.

(...)

Soros is still railing against the presence of George W. Bush in the White House. After blowing $23 million to keep Bush from returning to the Oval Office, Soros told reporters in 2004, if Bush were to be re-elected, he planned to go away to "some kind of monastery to reflect on what is wrong with us.

Well as we all know, Soros did not go to a monastery but he may have visited one in China while he was thinking about destroying the U.S. Auto industry. Then you have this gem:

Made in China

By year end, Chrysler LLC will start shipping a China-made car to Mexico, says the car's manufacturer, Chery Automobile Co.

Still under discussion are Chery-built cars for U.S. dealers of the automaker.

The car for Mexico, sold in China as the Chery A1, will be badged with a Chrysler brand, says Zhang Lin, general manager of Chery International.

Next, from CounterPunch that left leaning on-line rag...

The Faultlines in the US The Decline of the Dollar

The blame it on Bush crowd rhetoric as usual.

And Weak Dollar Central to Oil Price Boom

However straight from the mouths of babes:

Gates joins Warren Buffett in bet that dollar will extend drop

Gates, chairman of Microsoft Corp., said he expects the dollar to extend its three-year drop because of widening U.S. trade and budget deficits.

"I'm short the dollar," Gates told television interviewer Charlie Rose this weekend at the World Economic Forum in Davos, Switzerland. "The ol' dollar, it's gonna go down.

Berkshire Profit Climbs on Buffett’s Bet Against Dollar

We made one large sale last year. In 2002 and 2003 Berkshire bought 1.3% of PetroChina for $488 million, a price that valued the entire business at about $37 billion. Charlie and I then felt that the company was worth about $100 billion. By 2007, two factors had materially increased its value; the price of oil had climbed significantly, and PetroChina's management had done a great job in building oil and gas reserves. In the second half of last year, the market value of the company rose to $275 billion, about what we thought it was worth compared to other giant oil companies. So we sold our holdings for $4 billion. A footnote: We paid the IRS tax of $1.2 billion on our PetroChina gain. This sum paid all costs of the U.S. government - defense, social security, you name it - for about four hours.

Here you have Democratic supporters hedging the dollar's demise all the while, one is investing in PetroChina in hope that oil will raise in price. And another one looking at investing in cheaply made cars in China that would be exported to the U.S.

There you have it, Soros, Gates and Buffett, speculating on the dollar and as anyone knows what Soros' impact was on Great Britain's currency and in Russia, the rubles' decline, well that is old news.

Too bad for us that Buffett made out on the decline in the U.S. dollar while he was investing in PetroChina, a company that was aiding Darfur.

What would Canadians say to Obama if they really examined the rise in their gas prices that took off after 2003.

Canadian Gas

Or for that matter what would Americans say when you had Soros betting on the dollar's decline along with Buffet and Gates, all the while Buffet stood to gain on their pain by betting on the dollars decline and investing in a foreign oil company.

Nice to know the Dems have controlled congress for a short time and that their numbers are lower than Bush.

Talk about your Democratic hypocrisy. Got to love them. Soros, Buffett and even Bill Gates.

Republicans want to win? Then go for the political throat of the Dems.