Friday, April 20, 2012

 Exceptions for certain coins and bullion, not subject to 28% collectible capital gains rules

(3) Exception for certain coins and bullion
For purposes of this subsection, the term “collectible” shall not include—
(A) any coin which is—
(i) a gold coin described in paragraph (7), (8), (9), or (10) of section 5112 (a) of title 31, United States Code,
(ii) a silver coin described in section 5112 (e) of title 31, United States Code,
(iii) a platinum coin described in section 5112 (k) of title 31, United States Code, or
(iv) a coin issued under the laws of any State, or
(B) any gold, silver, platinum, or palladium bullion of a fineness equal to or exceeding the minimum fineness that a contract market (as described in section 7 of the Commodity Exchange Act, 7 U.S.C. 7 [2] requires for metals which may be delivered in satisfaction of a regulated futures contract,
if such bullion is in the physical possession of a trustee described under subsection (a) of this section. 
 (a) The Secretary of the Treasury may mint and issue only the following coins:
(1) a dollar coin that is 1.043 inches in diameter.
(2) a half dollar coin that is 1.205 inches in diameter and weighs 11.34 grams.
(3) a quarter dollar coin that is 0.955 inch in diameter and weighs 5.67 grams.
(4) a dime coin that is 0.705 inch in diameter and weighs 2.268 grams.
(5) a 5-cent coin that is 0.835 inch in diameter and weighs 5 grams.
(6) except as provided under subsection (c) of this section, a one-cent coin that is 0.75 inch in diameter and weighs 3.11 grams.
(7) A fifty dollar gold coin that is 32.7 millimeters in diameter, weighs 33.931 grams, and contains one troy ounce of fine gold.
(8) A twenty-five dollar gold coin that is 27.0 millimeters in diameter, weighs 16.966 grams, and contains one-half troy ounce of fine gold.
(9) A ten dollar gold coin that is 22.0 millimeters in diameter, weighs 8.483 grams, and contains one-fourth troy ounce of fine gold.
(10) A five dollar gold coin that is 16.5 millimeters in diameter, weighs 3.393 grams, and contains one-tenth troy ounce of fine gold.
(11) A $50 gold coin that is of an appropriate size and thickness, as determined by the Secretary, weighs 1 ounce, and contains 99.99 percent pure gold.
(12) A $25 coin of an appropriate size and thickness, as determined by the Secretary, that weighs 1 troy ounce and contains .9995 fine palladium. 
 (e) Notwithstanding any other provision of law, the Secretary shall mint and issue, in qualities and quantities that the Secretary determines are sufficient to meet public demand, coins which—
(1) are 40.6 millimeters in diameter and weigh 31.103 grams;
(2) contain .999 fine silver;
(3) have a design—
(A) symbolic of Liberty on the obverse side; and
(B) of an eagle on the reverse side; 
(k) The Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary’s discretion, may prescribe from time to time.

CBO | Budget Infographic - Discretionary

CBO | Budget Infographic - Discretionary
Congressional Budget Office

Check the charts below they are really good.   USA at a glance.   Print they will, they must.

CBO estimates that the President’s budgetary proposals would boost overall output initially but reduce it in later years. For the 2013–2017 period, under most of the estimates CBO produced using alternative models and assumptions, the President’s proposals would increase real (inflation-adjusted) output (relative to that under current law) primarily because taxes would be lower than those under current law, and, therefore, people’s disposable income and their demand for goods and services would be greater. Over time, however, the proposals would reduce real output (relative to that under current law) because the deficits would exceed those projected under current law, and the effects of increasing government debt would more than offset the favorable effects of lower marginal tax rates on labor income. When the net impact of those two types of effects would shift from an increase in real output to a decrease would depend on various factors, including the impact of increased aggregate demand on output and the effect of deficits on investment.
By CBO’s estimate, under the President’s proposals, the nation’s real output during the 2013–2017 period would be, on average, between 0.2 percent lower than the amount under current law and 1.4 percent higher than under current law. For the 2018–2022 period, CBO estimates that the President’s proposals would reduce real output, on average, by between 0.5 percent and 2.2 percent compared with what would occur under current law.

Thursday, April 19, 2012

Gold Taxation and Epiphany of the way it is

The following linked Word Doc is from a semi-free site called

Turning Inflation Into Wealth --they have a lot of good food for thought and then something to sell also....I have not bought yet.    Stacking knowledge.

But let's return to "the way it is".   And it is really this simple with a few overlying conspiracies.

During a period of easy money, there was also an emphasis on financial gimmickry and a nearly tit for tat of transference of jobs from productive activities to "Government".    Government (and unions through acting through government) voted themselves some incredible long term promises in terms of pensions.   They also voted themselves incredible benefits, and in the last decades, ever increasing salaries while "working people" salaries stagnated.

Now  "they" want to keep their Power, Privilege, and Pensions PPP.    And they will do anything to do so, they will go to the wall so to speak.    This process might play out over a decade or more, with significant intermediary dramas.   Like a person who lost their job, they will keep returning to the same place looking for "the cheese".   It will be a wave thing.

Besides the financial shenanigan thievery, which is just another sign of governmental corruption (they insist on the bribes that they have become used to), ALL THIS is really about a Government trying to save itself in it's death throes.   Death Throe O'Bronto.   And it is a big and  powerful government, with big weapons, and a militarized police force primed to "reign in the corruption and deceit that has been ongoing" and they will take it out on the little and medium guys.  

It is not a good scenario.   The issue is survival of a Government that has destroyed the base underneath itself by growing too large.  No one wants to take their medicine until they are forced to by a serious reality.  

Add link here - to Word Document

Inflation & Hidden Gold Taxation:  3 Historical Case Studies
By Daniel R. Amerman, CFA
The number one reason investors buy gold is to protect against the government policies that create inflation.  However, the government has "rigged the game" in such a way that the higher the rate of inflation, the more of a gold investor's net worth ends up with the government instead of the investor.
An examination of three historical case studies of long-term gold investment during a time of substantial inflation shows how under existing law and tax rates, the US federal government used the 1-2 combination of inflation and taxes to not only take all gold investor profits, but to confiscate part of the investors' starting net worth as well.  These three real world analyses explore gold acting as a perfect inflation hedge, gold experiencing asset inflation, and gold experiencing asset deflation. 
This isn't theory, nor is it speculation.  This is actual history, and it is likely to be the future as well in the United States and other nations.  The government's "game" is more sophisticated than most investors realize, and it is deeply ironic that many unsuspecting precious metals investors trying to protect themselves from government-created inflation are playing right into the government's hands when it comes to wealth confiscation under existing law.

Tuesday, April 17, 2012

End of the World as We Know It

Dont laugh, I am only half kidding

Tuesday, hey almost forgot its Expiry!

Wow, can't believe I let expiry sneak up on me.

Took the longest position short on Euro in about half a year, 3 position sizes for me, getting piggy, usually that means getting bitchslapped. 

However, very glad that the Euro did not follow the ES on its little tirade.

Other than that I am flat positions, a few long term (that means losing money) positions in gas and gold.

And of course, Stacking, all stored in safe positions, not in the home.  

Good thing the Euro is diverging from ES.    ES could simply be playing a wipe out the puts before expiry.

My observation says Monday and Tuesday of Expiry are the real fireworks.    Wednesday can have some movement, and then Thursday and Friday consist of little fake out runs to get people to close their puts and calls at losses or less gains.  

Sunday, April 15, 2012

Elliot Wave alternative course

 A friend who uses EW sent me an alternative possibility to how they could hold it here for a few more weeks.

If we don't decline now, here is a plausible wave count as to why it might be delayed
Same friend also sent this newsworthy photo and said it would improve the number of hits and comments on this blog.   Note I am running no ads no, as I shorted Google and want to take them down.   LOL

Also, my secret indicator is hid below the distraction below

Sunday Musings

 The old empire is crumbling

No great epiphanies however, the VOS is perched near a breakout. When VOS breaks above the yellow when all hell breaks loose.

It definitely does some fake breaks, getting pulled back into the zone. BUT....