Berkshire Hathaway's (NYSE:BRK-A) Warren Buffett: Time to Retire?

Warren Buffett, who runs Berkshire Hathaway (NYSE:BRK-A), since the onset of the economic crisis and recession, has steadfastly stood by the misguided actions of the Federal Reserve and government bailouts, saying it had to be done, even though the consequences over time will be devastating.

Buffett, now 80-years-old, was used by the New York Times to prop up the economic debacle again via an op ed where he said:

"Just over two years ago, in September 2008, our country faced an economic meltdown. Fannie Mae and Freddie Mac, the pillars that supported our mortgage system, had been forced into conservatorship. Several of our largest commercial banks were teetering. One of Wall Street’s giant investment banks had gone bankrupt, and the remaining three were poised to follow. A.I.G. (NYSE:AIG), the world’s most famous insurer, was at death's door."

Buffett, and partner Charlie Munger, as gold investors know, don't understand or even like gold. Buffett long ago abandoned the economic philosophy of his father Howard, and gravitated and embraced Keynesianism, which has led to the disaster we face today.

The reason Buffett supports the policies and actions is he is totally and completely tied up into government excess because he looks for companies that have monopoly positions, or at least as close to it as you can get.

That provides the protective moat he always talks about, and unfortunately the government plays a big hand in that with companies, as it interferes in the marketplace and promotes the types of businesses they prefer to succeed, giving an extraordinary advantage, or creates an unsustainable industry that wouldn't otherwise exist.

One example of that is the energy industry, where solar and wind power couldn't survive without being propped up by the government. There are many others like that.

Buffett has come out of the economic closet over the last several years, and contrary to his past behavior and communication, has made his embracing of the government and politics in a way that he hasn't done before, at least in the openness he has portrayed.

Charlie Munger has also made negative comments about gold, as he sees it as useless, even though it is a major force for safety and battles inflation, among a number of other things.

I wonder if these guys are simply getting too old to run Berkshire and other companies (in the case of Munger), as they are asserting things in a way which makes one wonder if they are being influenced and manipulated behind the scenes.

Either way, Buffett, in my opinion, has lost some of his luster over the last several years as he became more political and revealed his liberal and big government leanings, something that is obviously far beyond his expertise.

Knowing how to identify great companies and sectors to invest in is a far cry from understanding economics and the impact of the Federal Reserve and other central banks.

He understands it for how it helps his businesses, but he seems to neglect it in reference to the toll it'll take when our progeny must pay for the costs of the bailouts and fiscal stimulus.

In this, Buffett is as disastrous as any other misguided so-called economist working from the assumptions of Keynesianism.