Gold

Stop Bad-Brain-Think: Strategic Investment in Tangibles

Q: Why does stupid create bad results?

A: Evolution.

Now before you write me off as some nut case or evolutionist who believes we evolved from monkeys, let me explain. The effort here is to highlight our need to rethink bad ideas. When we continue to follow bad advise promoted by government, schools, churches, or any other person or entity, bad turns to worse. Darwin’s theory of evolution should wipe out bad ideas. However, bad brains that create bad ideas seem to be winning the battle.

Here’s a few bright ideas spread by bad brains. Save and invest your money in the stock market (only if you are a well-connected insider like politicians and elites). Buy real estate (you never really own real estate, you just rent it from the government collective – don’t pay your property taxes and watch for the black boots to come knocking). Eat according to the USDA food pyramid (only if you want to be sick and die early). I know, we all want a little slice of the American dream. The dream is becoming a nightmare many. What to do?

My solution. Turn everything you’ve been told about investing on its head. Think for yourself. Train your mind to question everything. Look at what is not seen.

There’s not enough time here to delve into the cause of bad brained ideas. Since we can’t get rid of the bad brain collective, here’s a way to minimize the effects of their stupid ideas…until the evolutionary forces take over and they die along with their ideas.

There is a pronounced tendency when confronted with important questions to consider only what is seen and ignore that which is not seen. Frédéric Bastiat

In 1980, John A. Pugsley wrote Alpha Strategy. It’s a free download and worth printing a hard copy. We see prices of food, gas, and other basic commodities going up. I graduated from high school the year Mr. Pugsley penned his book. Oh to have known and practiced his Alpha Strategy then. It’s not too late. Start now.

Since the debasement of our money began with the creature from Jekyll Island (The Federal Reserve) and removing the gold standard, the age of inflation was born and is here to stay. Hiding paper money under the fireproof mattress is like building a pine box to cache food under the earth. The elements and environment will destroy the value. Inflation is our greatest enemy. A day of reckoning is coming. How do we prepare for the dollar collapse? Invest in tangibles.

James Wesley Rawles of SurvivalBlog gives sage advice below on how and what tangibles to acquire. Read the full article here.

Which tangibles? I recommend buying farm land, common caliber ammunition, guns, hand tools, good quality knives, silver bullion coins, and gold bullion coins.

To spell this out in greater detail, I recommend:

  • Productive farm land that is in a lightly-populated region with plentiful water and rich topsoil.
  • Factory made ammunition in common calibers (“ballistic wampum“) such as: 308, .30-06, .30-30, .223, .7.62×39, 12 Gauge, .22 Long Rifle (rimfire) .45 ACP, .40 S&W, and 9mm Parabellum (Luger). For your investment and barter stockpile, buy only name brands like Winchester, Remington, and Federal–and perhaps Hornady and CCI.
  • High quality guns from name makers, chambered in common calibers. Good choices include M4geries, AR-15s, Steyr AUG-A3s, HK91 clones, HK93 clones, Galil Golanis, Ruger Mini-14s, FN-FAL clones, M1As, .308 Winchester bolt actions, Glock double column magazine pistols, XD pistols, Colt and Kimber M1911 .45 pistols, and Saiga 12 gauge shotguns.
  • Well-made hand tools, with an emphasis on 19th Century technology tools, such as: shingle froes, scythes, adzes, draw knives, axes, crosscut saws, and so forth. BTW, many other old-fashioned tools are available from Lehman’s.
  • Well-made knives, such as: Swiss Army knives (of various models), CRKT knives, and Cold Steel knives. [Sherpa Note: ESEE Knives are great and made in the USA]
  • Silver bullion coins should probably be 1 ounce or less. Either buy 1-ounce bullion “rounds” from a name brand supplier like Northwest Territorial Mint or Tulving, or pre-1965 circulated US. silver quarters from a company like AMPEX.
  • Buy gold bullion coins only after you have secured at least 500 ounces of silver bullion coins. (Always prepare for a “disaster barter” situation first, and then move on to buying gold coins as a long term investment and inflation hedge.) In the U.S., I recommend buying only the most readily-recognizable gold bullion coins: American Eagles, Canadian Maple Leafs and Krugerrands.

It is difficult to predict when substantial inflation will emerge in the United States. There are too many variables that cannot be predicted. Some of them are essentially political, such as debt monetization, currency pegs, bailout programs, and changes in tax laws. Just be watchful for signs of resumed inflation, and be ready to act swiftly to get the balance of your investments out of dollars.

I’m thankful that my parents had the foresight to buy productive farm land 40 years ago. They bought over 200 acres at $200 an acre. It’s worth $5,000 an acre now. Of course, we’re not selling. It truly is a priceless family heirloom!

Develop a strategy that fits your individual needs. Get creative. And don’t forget to enjoy the process and journey.

Doing the stuff,

SS

Categories: 180 Mind Set Training, Barter, Economic Collapse, equipment, Firearms, Gold, Preparedness, Self-reliance, SHTF, Silver | Tags: , , , , , , , , , , | 2 Comments

Red Pill, Blue Pill

By James Delingpole
July 18th, 2012

The other day m’learned colleague Ambrose Evans Pritchard wrote a piece in praise of money-printing. What the world needs is more Quantitative Easing, he argued, though this time deployed in “nuclear force.”
I have no doubt that this would bring about a full recovery very fast if conducted with enough panache, but is it possible to marshal political consent for such revolutionary action?
The Tea Party Congress, like Europe’s bourgeousie, would rather wallow in liquidation, Puritan cleansing, and mass default than tolerate the possibility of a solution.
I couldn’t disagree more violently with this analysis. Nor, happily could most of you. The most popular comment response – approved by over 300 readers – countered:
In reality, economics is not the fiscal rocket-science you make it sound. Capitalism itself is based on good old-fashioned honesty. The money at the heart of it must be both an honest store-of-value and an efficient medium of exchange. It ceases to be so when the inherent deceits of fractional reserve banking allow trillions of false credit to be pumped into the system, thus forcing up prices (booms) which inevitably lead to over-valued commodities (busts).
What happens next is that the banks, having privatised their gains in the good times, simply socialise their losses onto the tax-payer. It’s a crime. Simple as that really.
Reading these words – and seeing how many “likes” they got – did my heart good. “So I’m not alone, after all,” I thought to myself. “There are others out there who’ve taken the red pill too.”
The red pill – for those who haven’t seen The Matrix – is the one which shows you the world as it really is rather than cosy, fantasy confection of the popular imagination. The red pill is not for the fainthearted because it involves confronting painful, ugly reality rather than living the dream.
Let me give you an example of what taking the red pill entails. It’s a report from last year by the Boston Consulting Group showing that the amount of household, corporate and government debt which needs to be eliminated stands at $21 trillion. The cost of dealing with this “debt overhang” will entail the loss (ie confiscation by the government) of one third of the wealth of the asset-owning classes. Some time in the next few months, weeks or years, we’re all going to be taking a 30 per cent hair cut.
Here’s another fascinating report, this time about where gold is headed. Conservatively it estimates its target price at $2,300 an ounce.
Whenever I mention such things, I’m always amused by the rage it generates in some quarters from “experts” who passionately believe that gold is overvalued, that it’s a bubble that is about to burst. Well fine. If that’s what you think, don’t go and buy gold bullion. No one’s forcing you to – and what I say makes no difference either way to the market price: you can’t ramp gold like you can share prices. I just happen to think you’re making a big mistake which you could easily avoid were you to acquaint yourself with the most basic principles of Austrian economics.
What you need to understand is that the value of gold is not about to go up. What’s going to happen is that paper money is going to become increasingly worthless – meaning you’ll need that many more worthless paper notes to buy the same amount of gold. This is what Quantitative Easing does. And the reason you’re holding gold is not as some kind of crazy speculative investment which might just make you rich, rich, rich! You’re doing it for the much less exciting and more depressing reason that all your savings are about to be inflated away and gold is just a way of stopping you growing any more poor.
I’m holding quite a bit of gold at the moment by way of various investments. But believe me, I’d much rather live in a world where the economy was in the kind of shape where it made more sense to buy shares instead.
Besides your response to Ambrose’s piece, the other thing that has given me tremendous hope on Telegraph blogs in the last few weeks has been the arrival of the brilliant Thomas Pascoe – whom I hereby recruit, if he’ll let me, as my wingman. (Hannan’s probably Guy Gibson; I think I’m more like one of those suicidal Polish fighter aces.) As he showed in his piece the other day on the manipulation of the gold price, Pascoe, too has taken the red pill. He too, recognises, just how potentially dire things might get before this global economic crisis is resolved.
Quite how bad things get in the next few weeks and years really depends on how quickly the red pill faction manages to win the political and economic arguments. At the moment, the blue pill faction holds sway everywhere from Ben Bernanke’s Fed to Osborne’s Treasury to the entire crumbling mechanism of the EU. Given most people’s reluctance to deal with reality, I wouldn’t bank on a remotely happy outcome. Especially not in a world so barmy that men like Joseph Stiglitz are actually given the Nobel prize for economics…
Oh, and you can hear me talk more about this over on my podcast for Bogpaper.com. Take the red pill. T-a-a-k-e the RED PILL. It’s the only way any of us are going to get out of this one alive.

Tags: Ambrose Evans-Pritchard, Ben Bernanke, blue pill, Bogpaper.com, federal reserve, George Osborne, gold, hyperinflation, Joseph Stiglitz, keynesianism, Matrix, money printing, quantitative easing, red pill, Ron Paul is right, the real asset co, Weimar

Categories: Barter, Economic Collapse, Gold, Survival | Tags: , , | Leave a comment

Wake Up: Rainbows and butterflies DON’T come from baby gnomes!

Source: SurvivalBlog.com

Silver and Gold Bartering, Now and Post-Societal Collapse, by T.R.

Over the last few years, since awaking from my slumber that rainbows and butterflies come from baby gnomes, I have been preparing my bean, bullets and bullion for what ever may be on the other side of the eye of the hurricane, so to speak. Whether that event is the eventual collapse of not only the US dollar but currencies globally or some apocalyptic end of society as it currently exists. In that time I have found great interest in the financial aspect of this scenario. As a project manager I find that some variables in a project are non-linear and can not be evaluated on risk because of not knowing what you don’t know, this is not the case with the global nature of macro-economics and fiat currencies.

I plan a project by evaluating variables and risks to the scope and timeline of completion, that being said I have approached my preparation in similar manner. Since the more information you can obtain on particular variable it allows you put in place contingencies to mitigate the effects of a variable, such as a global financial/currency collapse, you can therefore weather the disruption that variable creates. Risk areas such as EMPs, natural disasters, terrorist activities etc are variables that you can only have so much information in regards to planning-unless of course your brother-in-law happens to work for the NSA or other alphabet soup agency that track such things and evaluate the probability.

But the information on our financial condition is well documented and there are many well respected economists and analysts that provide commentary on our situation no only as a country but also from a global connection. My journey has begun and continues to be how our US Dollar has fallen to the state of every other fiat currency throughout the ages. Whether it was the Romans debasing their gold and silver coinage or the Weimar Republic printing Marks like Rumplestilskin spun gold-in fact I am not too sure that Ben Bernanke is not our very own Rumplestilskin, just that he is not spinning gold. Prior to the creation of the Federal Reserve our dollar was backed by Constitutionally mandated Silver and Gold, at the onset of this vile organization the average wage was around $1,800 per year. (That equated to approximately 90 ounces of gold.  I would like to suggest everyone read G. Edward Griffin’s book, The Creature from Jekyll Island, to get a true sense of how evil and sinister this corporation is, ) That $1,800 average salary in 1913 equates roughly to today’s average wage of $42,000 per year. If you were to be paid in gold and silver as your great grandfather was, today you would only receive around 27 ounces of gold for your labor. (At the current Spot Gold price). Interesting over all this time that the Federal Reserve has had control of the US Dollar each generation really has not been better off, in fact I would argue that I would rather have my great grandfather’s wage of 90 ounces of gold per year, equal to $136,000 USD. The Federal Reserve has expertly stolen our wealth with out it being a crime.

At this point you are probably wondering where I am going with this. I know I am preaching to the choir on this subject of owning and holding physical silver and gold, but that is only after you have made provision for the beans and bullets. Once those are in place I highly recommend that you purchase and hold silver and/or gold (preferably in fractions of ounces, 1,2,5,10 grams and 1/20, 1/10, ¼ ounces) I say all of this because I believe we are currently in the eye of the hurricane. For those that don’t live in a hurricane zone, the front part of the storm is the initial wall of wind and water, it is scary and can be devastating, but as the eye passes over your location, you can go out look up and see nothing but blue sky, no wind, no rain and you may actually see a butterfly. To those that have not experience a hurricane you may believe it was nothing but a bad rain storm, but I can tell you the storm is not over and in fact the worst is yet to come. I believe we are currently in the eye of the storm, the initial wall of water and wind was the housing bubble of 2007 and we have endured the storms leading edge to now all seems quiet, calm. Stocks are steady, companies are showing profits but simmering under the surface is 10 to 20% plus food inflation, 20% real unemployment, a continual lag in the housing market if not a continually collapse, unsustainable national, state and local debts that can only be salvaged by the Federal Reserve. This is to name only a few, do not forget rising oil and gas prices. Their whether they are spinning US Dollars or real gold it still creates something from nothing and debases the currency and fuels the fires of inflation and destruction of the US Dollar and other currencies worldwide. The other side of the storm is a currency collapse that will be global in nature, which will lead to variables that will spin out of control very quickly and if you are not prepared to weather the storm to get to the other side you will be running to the first government savior to literally sign yours and your family’s life away.

My preparations began by converting about two years ago every dollar denominated asset such as Roth IRAs and 401(k)s to first food, then guns and ammunition and finally silver and gold. With only one small bump in the road I have been able to grow my physical holdings and continue to do so even with current silver and gold prices. Many ask me why when the rainbows and butterflies are out, I my reply is that someday the financial storm we weathered in 2007 will require not only the preservation of my savings but may be required for mine and my family’s survival. To those who are still slumbering they roll their eyes but to those that are awake or are just waking up this will ring true to your spirit. I urge you to continue to speak the truth of what we will be facing in very short order, hope upon all hope to reach as many as possible.

My dilemma has been that to purchase goods and services with silver or gold you must first sell it to convert it back to US Dollars, the process is cumbersome to say the least. Because of the cumbersome process I starting searching for a better way. Currently I am purchasing fewer one ounce rounds and more pre-1964 silver halves, quarters and dimes, and the following will explain why.

I follow Franklin Sanders of MoneyChanger.com, who has been dealing with silver and gold for years and his commentaries are usually spot on. He has developed a Silver and Gold calculator and is encouraging people to start asking when making a purchase “I can pay you with silver, gold or US Dollars, which would you like?” There may be a sense of fear in light of the recent Liberty Coin Federal case, but his issue dealt with the appearance of the coin and it representation of US Coinage, not that a private exchange between two individuals can be regulated (yet). Franklin Sanders reports that in some cases they will take the silver and gold and give you a discount on the purchase. Now I don’t suggest you try this with the local corporately owned Gas Mart or Wal-Mart, but maybe a local privately own Gas station convenience store, farmer, Co-op, etc. would be more receptive to the idea. So many of us that have awakened to realize that part of returning to some normalcy or even a return to the Founder’s principles we must start by eliminating the Federal Reserve. This task will probably never be achieved but at least it allows you the modicum of stealing back some degree of freedom from the fiat system by using real money. If our legislatures do not have the fortitude to fix it, the people will have to take the mantle upon themselves.

Franklin Sanders has a calculator to convert US Dollars to silver and gold. All that is necessary is to plug in the amount in US dollars the purchase requires and it calculates the amount of face value of US pre-1964 coins you need. I recently purchase three chickens at our local poultry auction using this formula for $27.61 in US Dollars or .98 cents in silver coinage. I exchanged three US pre-1964 silver quarters, two silver dimes and three copper pre-1982 pennies. A small victory!

Chickens purchased with silver, Price $27.61 USD with silver:

$0.98 face value of US Silver Coins worth USD $27.61 **
But it also works with large purchases such as a $1800 purchase which would convert as follows:

Pay $1,800.00 with gold & silver…

American Eagle gold coins:
1 $50 (1 oz) coin worth USD $1,539.68
1 $5 (1/10 oz) coin worth USD $153.97
and $3.58 face value of US silver coins worth USD $106.35 **
This site calculates and provides the amounts you need it also allows you to calculate a premium if you are a retailer interested in offering your product or service in silver and gold, I am hoping he turns into an App for I-phones or Blackberry in the near future.

If you notice all the conversions use US denominate coinage. Since American Eagles, both Silver and Gold, are legal US tender and pre-1964 coinage is still US approved tender. You will not be trying to “destroy the US Currency” with privately minted coins as the US District Attorney in her infinite wisdom announced about the Liberty Dollar. There can be no legal ramifications in restricting bartering especially if you are using US sanctioned coinage. And that goes to my last point in purchasing silver and that is to start procuring pre-1964 silver halves, quarters, dimes, pre-1982 pennies, and current and early nickels for use in a bartering system either now or in a post-collapse society. They will become your initial life in a post-fiat collapse society.

Categories: 180 Mind Set Training, Barter, Economic Collapse, Gold, SHTF, Silver, TEOTWAWKI | Tags: , , , , , , , | 1 Comment

Gold Value In Pictures

Found this great infographic on LewRockwell.com this morning. Thanks to Visual Capitalist for its creation. This is Part 1 of 4 in their series. Some times pictures are worth a thousand words!

Source: Visual Capitalist

Date: 02 June 2012

une 2, 2012

Copyright © 2012 Visual Capitalist

Categories: Economic Collapse, Gold | Tags: , , , , | Leave a comment

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