Friday, May 25, 2012

A rant from TF metals

If I take 1oz of Ag bullion to a reputable, official coin shop to exchange for '64 dimes, how many dimes will I walk out with, today?
This is a very simple example to demonstrate where the inefficiencies of the economy lie. This is a silver-to-silver trade! All I want is some 'change'! I was promised that during the last election!!!!
- High taxation (retail purchases in CA ~10% State tax); Federal taxation on gains, of course, etc.
- High premiums (iliquidity measure)
- Little competition due to barriers to entry, regulatory compliance, secret 'you have to show your ID to pay with cash, now, sorry, please help me to stick a boot up yer a$s for making a purchase of a REAL assets', etc.
- Two-way transaction losses, because PM's aren't 'money', etc.
- Any rational 'barter' is de-facto illegal, since in a closed system of barter w/out $USD, there would be no $USD to pay the mandatory taxes.
- BS arguments trying to convince me that ten cents of fiat BS and impurities in my 'silver' coin actually deserves any premium at all!
- Transaction fees, spreads, other fees, interest on loans in some cases, the real cost of market manipulations, and other losses perhaps per jurisdiction elsewhere, etc.
- Post-investment fines, surprise taxes, registrations, mandatory 'education' qualifications, fire code violations, arrests, confiscations, imprisonments, or outright theft when they can't kill the newbie legally, etc. for those ignorant enough to try to actually enter the market and thus create competition and innovation.
This is a great benchmark to weigh either new taxes on PM, or the alleviation of restraints on progress! Tell your congressional b-a$s-tards, and maybe a few would be willing to raise the argument in defense of liberty!
Worse of all, get ready for more demonization of the transaction and those involved in it, not the return to rational trade!  This will happen now.

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Insightful and Useful Comment!