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Burnett: "You could say [Buffett's] betting on America, but" trains he's buying are "carrying coal that goes to China"

November 04, 2009 9:11 am ET

From the November 4 edition of MSNBC's Morning Joe:

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    • Author by Easy to refute wingnuts (November 04, 2009 9:26 am ET)
      2 1
      And believe me, that trestle bridge from the US to China was a bitch to build!
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      • Author by oldmaninblackforest (November 04, 2009 9:47 am ET)
          8
        lets put it in pre-school terms for you - The RR takes the "coal" to the loading docks where it's placed on ships that sail to China where it's unloaded and used by the Chinese to undermine our economy. Oh yeah don't forget pumps millions of tons of co2 into the atmosphere so we can all let al gore be the first carbon-trade billionaire...
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        • Author by blk-in-alabam (November 04, 2009 10:31 am ET)
          2  
          The USA and China's economy cannot work without each other.If the Chinese dump dollars that make them go broke.When everything shakes out on earth as far as who is on what side.The results will be the worlds biggest energy users USA China,and India,against the biggest energy producers Russia and the Middle East.The CO2 in your soda pop was probably captured from the exhaust of a power plant.CO2 captured from power plant exhaust (is,can) be used as a cheep way to exponentially increase oil and gas production,from each oil and gas well.If you are going to criticize the science,know something about it or anything else you care to criticize.If Chinese power plants depend on USA coal,China is not in the driver's seat
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        • Author by Easy to refute wingnuts (November 04, 2009 11:08 am ET)
             
          lets put it in pre-school terms for you
          And you even got that wrong. Perhaps you should try understanding it in pre-birth (fetal) terms first, and then, once you are sure you know what you are talking about, keep your mouth shut, because as soon as you utter the first word it will be clear in no uncertain terms that you will have no idea what you are talking about.
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        • Author by rtwmd1230 (November 04, 2009 11:23 am ET)
             
          "China where it's unloaded and used by the Chinese to undermine our economy"

          Wow, 10 AM and we've already got the dumbest post of the day!
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    • Author by blk-in-alabam (November 04, 2009 9:31 am ET)
      2  
      Those trains carry coal to produce 60% USA electricity.A growing economy neede electricy.Mr Buffett also owns power plants.Those trains also carry steel.paper,iron ore,new cars,vegatabale oil......and every thing else every body needs.USA rail roads do not have tracks across the ocean.This is a big bet on USA economy???This is not a bet,because Warren Buffett does not gamble.This is the real thing.A substained period of substained USA economic growth has started.
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    • Author by oldmaninblackforest (November 04, 2009 9:39 am ET)
      1 2
      I'm thinking it's a great time for Buffet to support those railroad unions and share the wealth... Double, perhaps triple the salaries of all the RR union members... Works for me....
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    • Author by rtejon (November 04, 2009 9:48 am ET)
      2  
      Hey, it's Chinese money I'm taking every time I sell scrap copper. Doesn't bother me a bit.

      Maybe those trains are hauling more coal now than other items but the railroads have been advertising their relative fuel efficiency and lower shipping costs to everyone who has anything to move in bulk from A to B.

      I really like Erin Burnett. I don't expect her to be perfect but I do wish she would have thought this out before saying such a thing.
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      • Author by blk-in-alabam (November 04, 2009 10:47 am ET)
        3  
        Chinese metal demand has raised USA scrap metal prices.Scrap metal sales puts billions of cash dollars in communities all over USA
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    • Author by Nobodyputsbabyinacorner (November 04, 2009 11:08 am ET)
         
      Bottom line is that without China purchasing the coal the railroad would not have the sales, profits and therefore "intrinsic value" that is so important to Buffet. He is betting on China, not the US.
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    • Author by gs-425 (November 04, 2009 12:40 pm ET)
         
      That's an export then....a good thing.
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    • Author by toombsie (November 04, 2009 1:49 pm ET)
         
      Erin Burnett - resident air head at CNBC that has a job because she knows english and is pretty good looking.
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    • Author by terrapin53 (November 04, 2009 5:23 pm ET)
      1  
      Why did MMFA even post this. She is probably right about what the trains carry.
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      • Author by toombsie (November 06, 2009 8:33 pm ET)
           
        No, Erin Burnett is never right about anything. From Burlington Northern's 2008 10-K:

        "In 2008, the transportation of coal contributed about 23 percent of freight revenues. BNSF is one of the largest transporters of low-sulfur coal in the United States. More than 90 percent of all BNSF’s coal tons originated from the Powder River Basin of Wyoming and Montana. These coal shipments were destined for coal-fired electric generating stations located primarily in the North Central, South Central, Southeast, Mountain and Pacific Northwest regions of the United States. BNSF also transports coal from the Powder River Basin to markets in Canada, the eastern United States and Asian markets. Demand for Powder River Basin coal has increased substantially over time due to its relatively low sulfur content, abundant reserves, relatively inexpensive mine production and competitive delivered cost to power plants.

        Other BNSF coal shipments originate principally in Colorado, New Mexico and North Dakota. These shipments move to electrical generating stations and industrial plants in the Mountain and North Central regions of the United States and to Mexico."

        So 23% of their transported cargo is coal of which most of that goes to coal plants in America and some goes to Asian countries. Erin has a history of saying false statements on CNBC and never having anyone fact check her or call her out. I think she made that comment just to sound smart even though she's full of BS or to take a jab at Buffett who is a Democrat and Obama supporter.
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