Friday, November 2, 2012

Gold Bars 1 Troy Ounce

This is a spectacular Deal

I haven't since premium over spot this low for half a decade, for a quality, serial numbered product.

Gold, Silver, and Royal Canadian Mint

Some powerful charts, I have been sitting on my hands, waiting to buy some PMs, thinking a correction would come.   To wipe out the new PM bulls who jumped on after the huge surge upwards....and to show everyone that PM is a dangerous market to be in.   

That is all part of the game.  

Gold Swat Down

Ah Yes, a near perfect blimp formation.

In reality I should have taken some futures short as a trade, could have increased my gold profits that way.   Although it is harsh to bet against a long position.   Shoulda, Coulda, Woulda.

There have been huge divergences between USD, Gold, and SPX after the hurricane and in front of the election.  

Silver followed the same swat down pattern, even more percentage as expected, silver is more emotional, more "retail".

Also some advice from a newsletter on holding HK dollars instead of USD, and they even recommend holding that money in a Hong Kong Bank as a diversification in country of holding.    Bottom line, HK is pegged to the USD so when Bennie prints, HK must also print.    This is causing huge inflation in HK and asset bubbles in property, that HK doesn't like.  

And HK financial powers that be are strongly protesting that they will never "revalue" the HK dollar.   That means they will revalue.    The strongest protests come right in front of the move.     So your holdings in HK dollars could jump up 25% in equivalent USD.


Just remember there are tax forms that must be filed and filled out.    Big Brother wants to know where all of "it's" money is going.    Got it?   You didn't build that, its not your money, someone else made that money happen for you and you better be grateful about it too.      
On a serious note, foreign holdings need to be reported in 2 ways.    The reporting requirement depends upon the value of the financial asset.   Reporting real estate property is not necessary, but bank accounts and stocks and such, at certain value levels is required.   And you don't want to get this wrong, so have a qualified tax/investment advisor review things.

One is with your tax return, and that is the 8938

The other is an independent filing, specifically NOT to accompany your tax return---its the

TD F 90-22.1 "Report of Foreign Bank and Financial Accounts"

Part of the game is making is look risky and complex to hold assets in foreign countries, the more muppets that they can "scare into submission" the better off the country will be.     So they make things sound complex and vague.    

If you are the standard muppet, you will be scared off -- and you will not diversify the country of your holdings.    They want you to keep all your eggs in one basket.

In reality, there are lots of day to day bureaucracy and bullshit that we all have to deal with, so to play the game at a higher level takes a bit of commitment of extra effort to see through the bullshit and understand the requirements.     It is unfortunate that we have to spend our limited free time engaged in such activities, however, that is the way it is.

More later, have to go produce. 

Thursday, November 1, 2012

Preppin' from someone IN THE STORM

This from TF Metals Report


Guest Post: On The Ground in NYC with Green Lantern

Longtime Turdite, "Green Lantern", generously offered this fantastic summary and tucked it into the comments section of the previous thread. He offers firsthand observations of post-Sandy life in NYC and did such a great job writing it up that I felt it needed to be elevated to the main page. Thanks, GL, and God bless. Hang in there and keep us posted.
I want to make some observations about what I am witnessing here in NYC with Sandy. Some conclusions that you won't hear on the TV. 
First, the new Prep Friends and Community. If you don't have any, make some. Take classes on how to make some if you are one of those irritable types.
Millions of people are struggling to get to work. There is very little gas! Due to all the electricity problems.  Either no gas or the stations have no electricity. And obviously, limited public transportation and what there is simply chaotic. Ok, this shouldn't be surprise but here is the story they are not telling you,  WHY do millions of people, even people whose houses and lives have been destroyed waiting two hours for a bus, that takes another two hours to get to work only to be exhausted, work a few hours and do it over again? BECAUSE THEY CAN'T AFFORD NOT TO WORK. EVEN FOR A FEW DAYS OR A WEEK.  It's just terrible.
And obviously no gas means no deliveries! Prep food. And by the way, something I learned. Eat it for a week. Make sure you can live with it. I thought I'd give it a try. I need to revaluate some of my choices.
My wife can't get to work. Either no gas, or no public transportation. I told her to sit her ass home until one or the other comes back on. Companies are forcing their employee's to come in, go to meetings etc... You must find a way!  Message: companies can't keep up with their bottom line without employees and employees can't pay their mortgage and car payments if they don't come in.  It's almost modern slavery.  RESULT: Utter Chaos!  No time for grieving, no time for clean-up, no time for volunteering to help others, get your ass into work or else...We wouldn't have all the transportation chaos if people and companies had the leeway to have their employees stay home. Other message: Fed is going to have to print more to get such an important economic center back on line.  
It doesn't have to be your neighborhood that gets devastated to effect your life style. New Orleans goes down. No Seafood, Oil goes up. San Francisco or Boston tech area's go down, or Kansas City wheat gets messed up, you are effected.
We'll have to wait to see the long term business impact of this storm but my guess is a lot of people are going to have to go out of business especially without government assistance.  This should boost monetary policy nicely.  The hurricane besides the obvious devastation is only highlighting the significant economic problems we are facing. There is no reason so many people should be struggling to get to work under these conditions! 
Companies and people are over leveraged and their lifestyle depends on their ability to go to work tomorrow. The city has passed an HOV law that says you cannot drive into the city if you don't have three people in the car. When they interview people they say, I do not know two other people or do not know how to find two other people!  
COMMUNITY! Not Me, Myself, and I. That alone will not work. 
Yes, more and more looting is going on after the storm.  Reports now that people are pretending to be FEMA or other government officials and knocking on doors.   Government, federal, state and city cannot patrol all the devastated neighborhoods and even neighborhoods just having a hard time. People are crying for government to help them.  Lesson: Communities not government will determine your fate. I can't get to parts of the city to help friends. Just no way. 
Communities are being forced to get together and become their own police. Those that do are protected, those that don't.Oh, well. No food or food supplies running low in many communities  including many suburbs. Especially the lower class neighborhoods on Rockaway Beach, nobody has showed up except some religious groups who are feeding them and those who are being helped by their neighbors. People who are flooded or have damage are only getting by with the help of their neighbors who are taking buckets and helping them.     
Now let's just say that instead of a hurricane the the cities and states went broke. Transportation systems couldn't afford to run, massive disruption of either food or gas supplies etc.... Many people would be in similar situations. Little food and water, weak communities, and definitely no government to bail you out.
Other small lessons. Cell phones iffy. Towers down. DSL phone lines useless in some parts. Have an old fashion phone that plugs into the wall. We learned that lesson when the Northeast grid went down. Good reminder.
I won't go on. You are all smart people. But I'll say this, do not wait until the shit hits the fan to change your lifestyle. If you are living beyond your means or just near the tipping point, reduce your lifestyle and put the change in your pocket.    Ditch the premium cable and the fancy cell phones plans, stop getting your white wall tires hand polished, going to the nail place and getting your hair done every week. Vanity doesn't mean shit when you have to protect your family. I'll learn how to paint my wife's nails with colored glue if my wife needed it that bad. Our material based society is learning that it no longer serves us. We need to become a community based society where connection is more important than having that vice president title. There are quite a few vice presidents now sitting in puddles without electricity.  I hope they have food and friends to help them out.  
Lastly, all the Long Island and Jersey Shore beach resorts.  It's sad and utterly devastating. My memories are on both.  But I don't want government money to come in to build new boardwalks, and roller coasters. Private money fine.  I doubt it will ever be rebuilt the way it was. Put sand back on the beach.  Life guard stands, some bathrooms, a few hot dog stands and make some new memories. If that gets washed away, no big deal.  
People should be allowed to rebuild right on the beach. But not with my money. I drive 30 to 40 minutes to go to a beach. At the end of the day, i don't have to look at the waves. Our society needs to start having some more environmental awareness.  I accept the risk of living surrounded by water. If you live in San Francisco, you accept the risk of earth quakes. If you live in the flood plains of the Mississippi accept that risk. You have cognitive thinking abilities and the internet to access records.  It doesn't make it any less sad when disasters happen but we as individuals and societies need to take responsibility to be aware of our environments and the potential risks.  It's not salt water taffy, roller coasters, and boats that are key to your happiness. It's family and community. When are we going to learn that? Of course, when it's too late.

Wednesday, October 31, 2012

Deflation or Inflation?

Lets talk Deflation.
Deflation is when things start costing less in the nation's currency.
A nice lunch in Tokyo now costs around $8 USD, but it was expensive 10 years back.

When deflation is in play, people and business hold off on buying things, because if you wait "it will only be cheaper".    Deflation kills the economy.    

Since the economy of the US is about 70% consumer driven, this type of thinking (deflationary expectations) is disastrous for the economy.  

Thus Bennie and the Jets (thinks dollars flying through a jet engine and being swatted down by the helo prop wash) would rather do anything rather than create the lost 3 decades that Japan is experiencing due to deflation --and other reasons such as aging of society, too much governmental and pension benefits that had been promised {sound familiar?}

So Bennie will print until they don't have to, or until they can't.   

I don't see the scenario in which they can no longer print, short of pitchforks at their doorsteps, and really I don't think the pharmaceutical-ed  up, dancing with the stars American sheeple are up to it.    Sorry ain't up to it.   Sure there are plenty little loud mouthed "revolutionaries" but in terms of real change, real protest, I really don't see it happening.    I don't see serious protest happening until people can't feed their families--not enough food stamps, and even then the anger will be misdirected. 

So Bennie will print.   And you better spend your money now...because things are only getting more expensive.   And because that money in the bank is getting no interest, no yield, so you might as well spend it.    And that is the plan, simple enough.   

Got gold?    It is ready to be slapped down to 1600 or make a run for 2000.   Target in 2 years is 3800 per troy ounce. 

Tuesday, October 30, 2012


Sandy could have been worse, although she looks bad.   $20B or so.

About what the Fed Reserve conjures out of nothing to steal from savers and asset holders, every two weeks.     Keep things in perspective.

And lets hope the nuke plants can get utility power back on.    They have backup, when it works, and when enough diesel can be delivered.    But there are serious repercussions when they lose power for real.  And the older they get, the more dangerous they get.

Sunday, October 28, 2012

Tsunami on the Full Moon

Last Night was Saturday and in Hawaii everyone was celebrating Halloween.

The 7.7 earthquake in British Columbia caused a big Tsunami scare, and with memories of the Japan earthquake so burned into our Pacific heads, it was indeed a spooky Halloween.    

We returned home before the projected first wave.  

Interesting to note, that this was nearly a full moon again, the gravitational effects are obvious and clear cut in increasing percentages of earthquakes.