On Sunday, Bloomberg News reported that bonds issued by Warren Buffett’s Berskshire Hathaway are trading at “3.5 basis points less than Treasuries of similar maturity.”  In laymen’s terms, it is now more expensive for the U.S. Government to borrow money than Warren Buffett.  The implication here is that your money safer at Berkshire than with the government.

Let me get this straight; some citizen, who is bound by U.S. tax laws, runs some corporation, which is subject to U.S. tax laws, and the market is indicating it to be a safer place for your money than the authoritative body that controls the very same tax laws.  Do people really think this makes sense?  The “United States is losing its AAA rating” AKA the “China doesn’t love us anymore” argument is irrelevant here.  This screams arbitrage convergence play!  The gap between the two will close/invert.  Meaning, yields on Berkshire will go up and/or yields on U.S. Treasuries will go down.  Construct accordingly.

Disclaimer: The sooner Obama starts sexing it up, the sooner the gap will close.

Investing in gold is completely stupid.  I get it… your money market account is returning 0.0% annually… you see those pretty graphs of the performance of gold, and it gets you hot and bothered.  Common pro-gold arguments include inane phrases like “store of value,” “inflation protection,” “limited supply,” “shiny,” etc.

All bullshit.  Why is gold valuable?  To have value, something needs to have some utility. Gold is absolutely useless. It is too soft of a metal for use in production. A long time ago, we apparently invented a use for it; to exchange for other things.  However, we now have a far better, relative system for transactions. Its called….wait for it…. MONEY.

I’ll allow you its “rarity” due to a finite supply.  You know what else is rare?  My underwear without skid marks. Any takers at $1,100/ounce?  Article over.  One-nothing, me.

Have fun with your bubble.