This past weekend the annual stockholder meeting for Berkshire Hathaway was held in Omaha, Nebraska. During the Q&A session, Warren Buffet stated that Goldman Sachs did nothing wrong. He later appeared on Fox Business Network (if you don’t have it…, DEMAND IT!!!) along with Charles Munger and Bill Gates. Liz Claman interviewed then on a wide range of topics. The three business moguls all supported Goldman Sachs, thought derivatives, like Abacus, were ok (to a point), and were unconcerned about a possible VAT, Cap & Trade, and Financial Reform legislation. While the general consensus is that such money-men are Republicans, these three were major supporters of Democrats, namely Obama, this last election cycle. But the real story is that they are generally apolitical Statists.

Our friends at Wikipedia define ‘Statism’ as, “an ideology advocating the use of states to achieve goals, both economic and social. Economic statism, for instance, promotes the view that the state has a major and legitimate role in directing the economy, either directly through state-owned enterprises and other types of machinery of government, or indirectly through economic planning.” Our good friends in Objectivist circles define statism as, “a system of institutionalized violence and perpetual civil war, that leaves men no choice but to fight to seize power over one another.”

Any objective analysis of the recent economic crisis shows very clearly that much of the damage was caused by the following: the Federal Reserve manipulating currency and credit, Fannie Mae and Freddie Mac manipulating the housing market with assistance from the Congress and executive branch, and Wall Street manipulating pretty much every other aspect of our economy, again, with a great deal of assistance from the Congress and executive branch of the Federal government.

The concept of “perpetual civil war” is easy to see by the Media and interest groups promoting class struggles, race struggles, religious struggles, etc., all designed to keep attention away from the actual manipulators. Recent polls in the past couple months show that roughly about 80% of Americans: A) think government is too big, B) think they are not being represented by their elected officials, C) that America is headed in the wrong direction, and D) that we may still see an economic collapse. If one takes a critical look at what both the Far Right and Far Left are upset about, there is a great deal of common ground. They typically take opposing views as to whether those with an ‘R’ or a ‘D’ at the end of their name are to blame.

As I pointed out the other day in my brief summary of Evelyn Pringle’s series of articles on the Illinois Combine, that group consisted of people belonging to both political parties and businessmen hoping to profit via legislation. They really are both the same group. Call it the Corruption Party, the Crime Party, or the War Party, if you like. The majority of the elected officials from either side of the aisle are Statists. They work in tandem to achieve their goals. Thesis x Antithesis = Synthesis. The synthesis being the steady progression towards totalitarianism.

George Orwell wrote in “1984” that “man is infinitely malleable.” We can see that throughout history. The other day I was watching a repeat of the classic series, “World At War”. The episode, “Home Fires” began by showing film of a ballroom dance in London with the dancers fox-trotting away while wearing gasmasks. People will put up with practically any inconvenience when properly motivated to do so.

Warren Buffet, Charles Munger and Bill Gates are all too happy to pay a few more taxes, especially if it means the rest of us will pay more as well. They look forward to more government regulation, as it will effect us ‘little people’ much more than they, who have politicians in their hip-pockets. The SEC today is beginning talks with Goldman Sachs over their involvement in the Abacus derivative case. Too bad they aren’t questioning them about all their other activities, such as high-frequency-trading and the fraud they perpetrated on whole nations, like Greece and ourselves.