Facebook.... You're Fired!

I had one ear on the radio news yesterday, and I heard a phrase which always gets my blood pumping - "hate speech".  Not two seconds later, the radio belched another phrase which elicits a similar response - "protected category of people".  As is the norm, the two phrases were being used in the same story.

In this case, it was about Facebook, the "social media" company.  It seems some "protected category of people" had their panties in a wad about "hate speech" running amok on Facebook.

Have none of these spineless, worthless pieces of warm jello ever heard the phrase, "Sticks and stones may break my bones, but words will never hurt me"?

Apparently Facebook has not.  So, in response to the wadded panties, they're working feverishly on a new Hate Speech policy.  The nuts and bolts of it are in a single sentence - 

 While there is no universally accepted definition of hate speech, as a platform we define the term to mean direct and serious attacks on any protected category of people based on their race, ethnicity, national origin, religion, sex, gender, sexual orientation, disability or disease.

 How do you have a "direct and serious" attack with a keyboard unless someone is swinging it at your head?  And we're not talking about libel, we're talking about mean things being said about someone.

Seriously, grow a pair (metaphorically if it's physiologically impossible).

Still, I'm not firing Facebook (our precious metals store has a FB business page) because they're a bunch of simpering, politically correct bed-wetters.  It's because they're discriminatory in the application of their Hate Speech policy.

Against me.

You see, I am one of the people not included on the, "protected category of people" list.  I'm a White Heterosexual Male (I know.... ghastly, ain't it?).

As such, I can be verbally shit upon with impunity.  Hell, it's even encouraged in some circles.

And that's OK.  I'm a big boy.  If I don't like what someone from a protected class is saying to me, I can stop reading them.  If someone comes here and slithers under the incredibly low bar for discourse on this site, I can ban them.

I gots options.

I don't need the Facebook Polizisten to fight my battles for me.  But I will not be a part of a group that grants privileges and benefits to a chosen few in the group - especially when those benefits are not based upon merit or accomplishment, but upon the color of their skin, their gender or other "membership qualifications" over which they have no control.
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I know, I know.  I live in a fantasy world.  Like, "not the color of his skin, but the content of his character," and "equal justice for all," will ever be the real law of our land.

Facebook has every right in the world to discriminate against or pander to any group they wish.  We, as individuals, can decide if their standards are complimentary to our standards.  If they are, we can join.  If they're not, we can look to find others we'd like to join.

Obviously, the rub is when government starts picking favorites.

We already see it in "Hate Crimes" - the opening act for the Thought Crimes Traveling Circus.  The protected classes are afforded additional protections - or more accurately, harsher penalties are imposed upon the unprotected classes.

If I'm beaten to death by a member of the protected class, and they're screaming at the top of their lungs, "Die!  You white, cracker, honkey mutha fucka!" as they crush my skull, no additional penalty will be applied.

If I am the one administering the beating, and "Chink", "Fag", "Spic" or "Nigga" is fairly whispered, I get bonus points added to my sentence.  God Bless America.

In both of these cases, aren't we both equally dead?  Does it matter if I'm beaten to death for my gold wedding ring or because of the color of my skin?

Not to me, and not to my grieving family.  Dead is dead.  It's the outcome, not the motivation that should matter in America.
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Now, without so much as the assistance of a Ouija Board, I confidently predict that our government will capitulate like Canada and virtually all of Europe, and enact Hate Speech laws.  It will be illegal to say something offensive about a protected class or to one of its members.

The bleating masses will have been so programmed to believe that the protected class have no ability to protect or act for themselves that we need the Long Arm Of The Law to make things right.  To make things fair.

The first amendment will be warped and twisted and finally, interpreted correctly - it was written by misogynistic, slave owners dontcha know - to mean that free speech is allowed, as long as it's the right kind of free speech.

Wrap it up in a flag, and sell the hell out of it.  Yep.  God Bless America.  God.  Bless.  America.

Accept The Challenge

Clearly, in the grand scheme of things, me firing Facebook won't mean one damned thing to the success or failure of the company.

It's about principle.  I won't stay at a Harrah's because of their CCW rules. I won't eat at Pizza Hut for similar reasons (delivery drivers are forbidden from legally carrying guns).  I won't drink Miller Beer because of their financial support for Illegal Alien Immigration (the fact that Miller tastes like watered down donkey piss soaked in soiled boxers makes this one really easy).

And now I won't use Facebook because of their discriminatory practices.

We all have choices to make each day about what products and services we use.  We can, "Go along to get along" - don't make any waves.  But that's just not the way I'm built.  I'm a pig-headed SOB, especially if I think what you're doing is wrong.

I try to vote with my feet and my pocketbook, 'cause my voting in the booth has not been particularly successful, especially here in California! 

Do what's right.

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Copyright 2013 Bison Risk Management Associates. All rights reserved. Please note that in addition to owning Bison Risk Management, Chief Instructor is also a partner in a precious metals business. You are encouraged to repost this information so long as it is credited to Bison Risk Management Associates. www.BisonRMA.com

Quasi-Collectible Bullion

Most folks buying bullion understand that they'll have to pay a premium when they're purchasing either gold or silver.  This premium can be different for two coins with identical precious metals content.

For instance, a gold American Eagle coin, will carry a higher premium than a gold Krugerrand, even though both of them contain exactly 1 ounce of pure gold.  Why?  Market demand says that Eagles are more valuable than Krugs.

Still, that difference in premium amount is usually less than 2% or 3%.  Not a real game changer.

There are a number of coins, though, that seem to defy gravity - and economics.

Take the Morgan Silver Dollar -

These coins were minted from 1878 until 1921.  Numismatic (collectible) specimens can be very expensive.  Virtually all of the ones minted at the Carson City mint - regardless of condition - fetch a nice collectors premium due to the low mintage's.  A number of key dates (1893-S in particular) can cost many thousands of dollars.

They are a very popular coin, but can be found in abundance.  Each coin contains 0.773 of an ounce of silver.  At today's spot price of $22.63, that means the coins contain $17.49 in silver.

Let's say that because of their popularity, bullion (non-collectible) versions were to command a premium similar to the American Silver Eagle - something in the range of $5 or $6 per ounce.

Doing the math (22.63 + 6 = $28.63 x 0.773 = $22.13) we see that each coin would sell for a bit over $22 a piece.

Good luck with that.

For some reason beyond my comprehension, these are selling for absolutely insane premiums.

If you go over to APMEX.com and go to their Morgan Silver dollar page [link] you can see the following prices (note:  These are for 100 coin sacks of bullion coins.  If you want to buy less than 100 coins, the premium is higher still!)

Just for comparison, here is a cull coin (barely able to distinguish features) -

And here is a Very Fine coin (these rate a 20 on a 1 to 70 scale, with 70 being a perfect coin) -

Nothing special to look at.  Yet you're paying a premium north of $18 per ounce.  Insane.

Another coin in this Irrational Exuberance Premium class is the $2 1/2 gold Indian -

Aside from one minting (the 1911-D), these coins are VERY available as bullion.  Several hundred thousand were produced each year of production.  They are kind of cool, in that their devices (the pictures on the coin) are imprinted INTO the coin, as opposed to how most coins have raised devices.

They contain roughly 1/8th of an ounce of gold (0.121 oz).  At a spot price of $1380 per ounce, they have $167 in gold.

A cleaned version (which absolutely removes any potential for the coin having collectible value) will set you back $272, and one in Extra Fine condition will set you back $322!

As I've discussed in the past, the smaller the coin, the higher the premium (more people can afford the cost of 1/10th of an ounce versus a full ounce).

Right now, an American Gold Eagle 1/10th ounce - the creme de la creme of modern gold coins - will cost you $161, or a premium of 16.7%.  The larger 1/8th ounce Indians mentioned above have premiums of 62.9% and 92.8%, respectively!

Accept The Challenge

There are many coins that fall into this "quasi-collectible" category.  Clearly, all bullion is not created equally.  As a rule of thumb, when something gets older, its perceived value rises.

If you're buying gold and silver as a hedge against future inflation, tread lightly here.  I can tell you that our shop - which does A LOT of business in numismatic coins - does not pay anywhere near these "market" rates for the two bullion-grade coins mentioned above.

Honestly, I don't know of any stores that do, other than those located in hoity-toity areas. 

If it is your belief that our economy is going to take a hit because of the actions of the Fed, and we're going to see ugly inflation, your dollars are much better spent buying bullion for the lowest premium you can find.

If you want to "roll the dice" a bit and pick up some of these types of coins, please do your research first.  Look up historical pricing in comparison to spot prices.

Also, from what I see in the news, the rich folks among us are paying crazy money for art and rare coins.  I just don't know if these not-bullion/not-numismatic coins are pricey enough for the rich folks to care about.

Lastly, during the last gold confiscation in 1933, collectible coins were exempted from confiscation.  If it were to happen again, and they played by the same rules, you might be wise to have some collectibles in your stash.

I prefer bulk buried in the back yard, but that's just me..... ;-)
 
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Copyright 2013 Bison Risk Management Associates. All rights reserved. Please note that in addition to owning Bison Risk Management, Chief Instructor is also a partner in a precious metals business. You are encouraged to repost this information so long as it is credited to Bison Risk Management Associates. www.BisonRMA.com

A Very Obedient Lot

The only power any government has is the power to crack down on criminals. Well, when there aren't enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.
--Ayn Rand

Here we go again.

The government is looking to make more of us criminals.  They want to lower the legal Blood Alcohol Content from 0.08% to 0.05% -

The National Transportation Safety Board made its recommendation last week: Lower the blood alcohol concentration level for drunken driving nationwide.

The government has been telegraphing their intentions for a while.  Like a veteran boxer, they've been softening us up with some strategically placed blows.  Specifically, a few years ago, they started with their, "Buzzed driving is drunk driving" Public Service Announcements.

I'll bet that's about the same time they noticed that drunk driving arrests were in a decline.

Getting the American public to at least consider the concept that any alcohol in your blood stream is bad while driving will just make getting the law passed that much easier.

If offering the carrot doesn't work, DC will just use the stick.  That's what they did back in the 1980's to get the current DUI laws in all 50 states:  Lower your DUI standards, or we'll withhold your federal highway funds.

Money talks, and all 50 states caved.
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The DUI zealots have arguments that run along the lines of, "If only one person is saved by having these DUI laws, then it's worth it."

If you dare to question their position, they hit you with, "What if it's the life of YOUR child that's saved?"

Well, I dare.  Because they're morally, ethically and statistically wrong.  Extending their logic would mean that anything, anywhere that has the slightest chance of killing just one person must be banned and criminalized.

"No, no, no!", they'll say.  "Alcohol consumption is voluntary, as is the act of driving after a couple of drinks."

"Fine," I'll retort.  "Then let's ban driving all together.  Driving is voluntary.  More people are killed each year from car accidents than by just about any cause other than disease.  Stop the carnage!  Ban the car NOW!!!!"

I then lay it on thick.  "More than twice as many people are killed in car accidents than are murdered each year.  Twice as many!  It's an epidemic and a scourge to our society." [PDF link here, page 18]

"No, no, no!" they repeat.  "Don't be silly.  Cars are an important part of our society and economy.  Without cars, our society as we know it would come to a screeching halt.  No more people driving to work, no more soccer mom van pools, no more holiday get-togethers with the family, no more weekend trips to the beach, no more runs to the store for groceries.  It would be devastating to our economy!"

"Ah," I say, ala the spider to the fly, "There ARE lives you'll sacrifice for what YOU perceive to be a good cause.  Your cause happens to be money and leisurely pursuits, which I find repugnant and personally offensive."  (Hey, I gotta play along....).

"No, no, NO!" they'll squeal, spittle a-splatterin', frustrated by the bombardment of logic.  "Drunk driving is different.  Government has a duty to protect us.  We all know that driving drunk is bad.  We must be willing to give up some of our personal freedoms for a safer America."

It's usually about here that my head explodes like a balloon filled with pomegranate seeds.
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[In through the nose, out through the mouth.]


Here in American, we're supposed to be governed by laws which protect the rights of the individual.  Really.

You can supposedly live your life any way you see fit, as long as your actions don't infringe upon the rights of another citizen.  It's a pretty simple concept.

We have a document in a glass case in Washington, DC that says so.  The first sentence even includes,

...and secure the Blessings of Liberty to ourselves and our Posterity...

I'm not kidding.  Take a look.

We even went to war with some tyrants to secure these freedoms.  Another document which we used to declare our intent was chock full of this liberty and freedom stuff.  Seriously, it's all over the place.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed,

The last part of that quote is important.  It's saying that we allow a government to protect our rights of freedom.  I've read the whole thing at least a couple of times, and there's not one mention of us consenting to allow our public servants to write laws that restrict those rights, unless we're at war or during times of insurrection.  And even then, they're treading on thin ice.

Yet, here we be.
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Just like having face tattoos, or carrying a concealed pistol, or wearing baggy pants half way down your ass, driving with any alcohol in your blood stream makes you presumed guilty of some future crime.  You have not infringed upon the rights of another, nor have you manifest any indications that you have the intent to do so (such as swerving in the roadway).

You are found guilty for no reason other than having broken a law in which no victim is required.

We now have a society where it is considered "reasonable" to restrict your rights - almost without boundaries - where no victim exists, and no harm has come to anyone.

• Restrict you from carrying a gun in public because a miniscule percentage of our population has used a gun while committing a crime in the past (and because most politicians are pussies).
• Restrict (and report) the amount of cash you may deposit or withdraw from your personal checking account because criminals have dealt in cash in the past.
• Restrict your ability to choose an airline to fly without being subjected to a fully body search because a handful of terrorists - 19 to be precise - have used planes as weapons in the past.
• Restrict your ability to drive down the road unmolested by government agents manning check points because a nearly immeasurable percentage of the population has driven drunk in the past and taken the life of another citizen.  To call it, "statistically insignificant" would be assigning it grotesquely too much weight.

Government is able to do this because they are able to sell fear.  They do this very well.  Their livelihoods depend upon it.

Apparently, the cashflow from DUI arrests is drying up, so they need to lower the bar - yet again - to ensure a steady flow of fines into their coffers.

And DUI is a sweet deal.  For the state.  The vast majority of the 1.4 million Americans who are arrested for this each year only take up an hour or so of the officer's time.  Most get remanded to the custody of a family member, so they don't even impose a cost on the jail system.

But their pocketbook gets hammered.  To the tune of at least $10,000.  Fines, tickets, court costs, blah, blah, blah.  Ten grand.  For not infringing upon the rights of a single fellow citizen.

And if you try and invoke your fifth amendment protections against self-incrimination - by refusing a blood or breath test - the costs and penalties skyrocket.

Quite the racket, no?
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No matter.  This too shall pass.  Into law.

There's too much money at stake, and too many Americans have no concept of personal freedom to question the motives of their public servants.  They expect to be told how to live, what to do and how to do it.  We're a very obedient lot.

Feel safer?

Baaaaaaaaaaa......


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Copyright 2013 Bison Risk Management Associates. All rights reserved. Please note that in addition to owning Bison Risk Management, Chief Instructor is also a partner in a precious metals business. You are encouraged to repost this information so long as it is credited to Bison Risk Management Associates. www.BisonRMA.com

Some Good Ideas

A friend sent me an email with a bunch of photos demonstrating some damned good ideas.  I thought I'd share the ones I liked best...

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Copyright 2013 Bison Risk Management Associates. All rights reserved. Please note that in addition to owning Bison Risk Management, Chief Instructor is also a partner in a precious metals business. You are encouraged to repost this information so long as it is credited to Bison Risk Management Associates. www.BisonRMA.com

Lampreys

A good friend of mine has a very similar business to my PM store.  His is located in Napa.

He, like many other businesses in Napa, employee young, out-of-work people to be sign wavers.  These kids (usually) twirl a sign around to get passing cars to notice the business.  My business employs a kid to do the same thing for our business.  It's very effective advertising.

The kid my buddy employs has some sort of disability.  He's been out of work for over 2 years.  One of the local "lend a hand" organizations in the area - Napa Valley Support Services - brought this kid to the attention of my friend, and he fit like a glove.

My friend's previous experience had been much like mine:  You hire someone for the job, which involves a LOT of physical activity, and although it pays more than 33% over minimum wage, you burn through people.  Quickly.

This kid was different.  He loved the job.  He was reliable, showed up on time, and worked his butt off.

Uhm, did you notice how the tense of that last sentence changed?  Yeah, my buddy had to let the kid go.  Because of a local sign ordinance.

Last February, the City Council announced plans to refocus code enforcement efforts on policing illegal signs, but the ordinance isn’t new, said city Planning Manager Ken MacNab. 

“Portable signs, including signs that are movable or moving, have been prohibited in the city’s ordinance for some time,” he noted. “The council has expressed an interest in bringing these signs into conformance and we are making a concerted effort to do that.”

Why?  What public cause is advanced by banning advertising by businesses that are paying your salary with their tax dollars?

Portable signage can be considered blight, MacNab said. “It’s important that signage not obstruct the views and sightlines of vehicles, and that signs not be placed in our sidewalks and obstruct pedestrians.”

Uh, what?  Blight?  Seriously?  All the signs and the wavers don't even come close to obstructing views and sightlines of cars, since the waivers are on the sidewalk.  And not one, single pedestrian had their path obstructed by the waiver.

So what now, cupcake?

“We understand that signs are a valuable tool for businesses, but we do have regulations,” MacNab said. “We believe that there are other ways for a business to reach its customer base.”

Roll that sour ball around in your mouth for a second.  This SOB who has likely never owned or even worked in private business in his adult life is making suggestions on how they should reach their customers?

In government-speak, he's saying, "We've got rules - they're the only way we can exert power.  We don't give a damned that the signs are a 'valuable tool for business'.  Do as we say, or pay the price, you capitalist piece of crap."
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Board of Supervisors Meeting

Like lampreys, many in government - hell, MOST in government - are nothing more than a stomach with sharp teeth that clamp on to a viable food source.  They keep sucking and chewing until the host dies.

Then they go find another host.

It will be interesting to see how this turns out.  A number of the folks in the article, and a few who commented on the article said they're going to bring their complaints to the Supervisors and raise some hell.

It may not matter.  Rules is rules.

These lampreys don't seem to understand that not only is one of their citizens now unemployed as a direct result of their actions - no longer paying his own way and also paying for their salaries -  but that THEY will have to dig into their city coffers to pay for his upkeep.

I'm sure it makes sense in their twisted little sucker-fish brains.  They just don't seem able to grasp the concept that eventually, when all of the host fish are gone, they'll have to fend for themselves.

Now that's a fish fry I want to watch...


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Copyright 2013 Bison Risk Management Associates. All rights reserved. Please note that in addition to owning Bison Risk Management, Chief Instructor is also a partner in a precious metals business. You are encouraged to repost this information so long as it is credited to Bison Risk Management Associates. www.BisonRMA.com

We Can Dream

I'm not quite sure how I missed seeing this video when it was originally released in February.

We can only dream of a real politician such as this....



I've never understood how the SCOTUS has been able to justify our gun laws.  2A is pretty unambiguous.  It says nothing about granting the feds or states the ability to reduce the scope of 2A, "well, except when this happens," or "if enough legislators currently in office think it's a good idea".

Nope, you can either repeal 2A or, as suggested, add another amendment to nullify it.  Those are your choices, not "death by a thousand cuts" as we've witnessed.

Yeah, how's that workin' out.....
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Copyright 2013 Bison Risk Management Associates. All rights reserved. Please note that in addition to owning Bison Risk Management, Chief Instructor is also a partner in a precious metals business. You are encouraged to repost this information so long as it is credited to Bison Risk Management Associates. www.BisonRMA.com

Internet Tax Is Doing You A Favor, You Soft, Squishy Loser

Just in case you weren't paying attention, the FedGov is proposing a new Internet Tax.  Yeah, it's all in the name of freedom and fairness and, damn it, it's just good for America.

Yeah.

Of course, it's none of those things.  It is just another money grab.  Your money getting grabbed, of course.

The talking heads on TV talk about how it makes it fair to the little mom and pop physical store in your home town.  "They just can't compete with the Amazon.com's of the world.  It just ain't fair!"

Frankly, I don't give a damn about fairness.  And this is coming from a guy who owns a physical store - no Internet sales whatsoever - that has to compete against all of the massive (and I mean MASSIVE) online bullion stores.  APMEX.com, MONEX.com and the like.

They don't have to charge tax on any bullion they sell.  I, on the other hand, must charge 7.875% sales tax on all bullion orders under $1500 (it's California, so don't ask...).  On top of that, because they're so big, the online guys can sell their goods at a lower per-item cost.  Many times, WAY lower.

So how do I survive and thrive?

We don't compete purely on price.  It's a part of the sales component, but there are a lot more things we bring to the attention of our customers.

We make sure they add in the cost for insurance, shipping and wire or credit card fees.  Still, sometimes our price per unit is higher.

We educate the hell out of our customers.  Grab a cup of fresh brewed coffee (our machine grinds the beans and makes a cup, one cup at a time) or a cool bottle of water, plop your butt down, and let's talk bullion.  Why, how, when, where.... whatever you want to talk about.  We tell our customers what we believe, why we believe it, why we personally buy (and rarely sell), and that they need to go away and make their own decision based on their own research.

Try getting that from some guy with a script on the phone.

Next, we discuss delivery.  Give us money, walk out with gold or silver. It's a hell of  a thing looking at a stack of silver bullion, fingering it like a pirate's treasure, and then walking out empty handed for a couple of bucks.  It happens, but not often.  When the big guys tell you you can get your stuff in 4 to 10 weeks, well, some of the luster comes off the dollar per silver ounce you're saving.

I think the biggest benefit is one that actually draws most folks to physical stores like ours:  privacy.  No matter how you slice it, if you buy online, somehow, somewhere, your name is now in a database.  Entities buy those databases, including good old Uncle Sugar.

People don't like that.  I tell them that we suggest not giving us their name for their receipt when they buy bullion from us.  I ask them, "If you go into Walmart and buy underwear for cash, do you give the clerk your name?"  They get the point.  People are so used to giving away their privacy.


In short, we provide, "added value".  We work hard to define and sell the idea that value is more than just price.  It's the whole package.

It's hard, it's time consuming and it's costly.  But we've built a business around that philosophy.
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Sorry to those of you out there that are business owners and think this new tax will "level the playing field" and mean your business will be saved.  You're wrong.

If your business needs a Fair Share Law, ala Atlas Shrugged, it's already dead.  That business pulse you feel is just the last drop of business blood dripping out of your system.

If your business has significant online competition, you should have changed your business model over a decade ago.  And every year since.  If you get soft and fat, your market share gets gobbled up by the competition, regardless of how fair things may or may not be.

You need to look at the weaknesses of your competition, and bring those to the forefront of the mind of your customers.  What's important to your customers?  Why are they buying this product, regardless of the source?  Sell to those emotions, and convince them that they get more value by coming to your store.

Maybe you're going to have to get off your butt and actually add some value.  No one ever said business was easy.  Feast and famine are part of the game.

Maybe you need to diversify your business. 

Like with my "gun training business".  It's much more than that.  We do emergency prep (for individuals and businesses), safety awareness training, pepper spray and stun gun, introductory pistol, advanced pistol, private lesson pistol.  Common thread:  Personal responsibility and safety.

Going back to our bullion business, we actually have 4 markets we go after.  Bullion buyers and sellers, scrap gold and silver sellers, discount jewelry buyers and numismatic (collectible) coin buyers and sellers.  They're all related (precious metals) but have separate supply and sales markets. 

We're not trying to sell pool chemicals in an ice cream store!  We do what we know, and always look to expand or develop new, related markets.  We fail much more than we succeed, but we fail during tests, so our entire business is not placed at risk.  When we hit a homer, we hit it hard.

Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful people with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated failures. Persistence and determination alone are omnipotent.
--Calvin Coolidge

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Back to the Universal National Patriotic God Bless America Sales Tax:  You know how this will be sold, right?

We're now seeing all of these small business owners on Fox and CNBC whining about how tough it will be to know the 10,000 different tax rates (a valid whine, in my eyes - but come on, Man Up).  So, Nanny McTaxYourAss will tell us, "No worries, children.  We're going to administer this new program.  Online sales will have a single tax rate (or just a couple), regardless of where the sale was made.  In the name of fairness and equality and fairness and pride and fairness, the money will come to DC, where we'll siphon off uh, take a few pennies and send the money out to all of you little towns and hollows on a fair and equitable basis."

Yeah, they'll fix your problem of having to figure out thousands local tax rates - a problem THEY created.

Ain't that big of them?


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Copyright 2013 Bison Risk Management Associates. All rights reserved. Please note that in addition to owning Bison Risk Management, Chief Instructor is also a partner in a precious metals business. You are encouraged to repost this information so long as it is credited to Bison Risk Management Associates. www.BisonRMA.com

Get Some, If Ya Can

Marinate in this for a second -

“Perhaps more to the point for TBTF [Too Big To Fail], if a SIFI [Systematically Important Financial Institution]  does fail, I have little doubt that private investors will in fact bear the losses [emphasis added.  ed.]–even if this leads to an outcome that is messier and more costly to society than we would ideally like,” Stein said in remarks prepared for a conference sponsored by the International Monetary Fund. “Dodd-Frank is very clear in saying that the Federal Reserve and other regulators cannot use their emergency authorities to bail out an individual failing institution. And as a member of the Board, I am committed to following both the letter and the spirit of the law.”

Ok, who is this Stein fella, and why should I give a damn what he thinks.  Well, he's a governor for the Federal Reserve Bank.  You know, that group of shot-callers when it comes to our financial well-being.

In non-banker speak, he's saying that if an large American bank goes teats-up, the depositors will be footing the bill for the bailout.

What?  You didn't know that when you make a deposit in your bank, you are an investor (creditor) of that bank?  Yep. Your deposit amount is an asset on your personal balance sheet, and it's a liability on the bank's balance sheet.  An unsecured liability, by the way.

So, when the National Bank of TooBigToFailville crashes and burns, you'll be the one holding the flaming bag of dog dung.  Rest assured, though, that the friends and family members of the banksters will have already pulled their cash from the collapsing hulk.

Just like what happened in Cypress.  Hmm.  Hey, it all kinda sounds like Cypress now that you mention it.  Who'd a-thunk it?

At least in Cypress, the Little People got to keep the government guaranteed portion of their money (the equivalent of our FDIC protection).  Are we going to get the same "protections" or is Mr. Stein giving us a heads-up to the contrary with his, "messier and more costly to society" comment?
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I've noted here in the recent past that there have been shortages of product to sell in our precious metals store.  For the past couple of months, getting our hands on silver, in particular, has been very difficult.

Now, it's damned near impossible.  Unless a customer comes in my store selling stuff, I've got no other avenues to obtain product for my buying customers.

Here's a screen print from a recent email from one of our regional wholesale suppliers.  These guys do half a billion dollars a year in business -

But wait, there's more!  Here's a screen print from an email I received from a national supplier we use, NTR metals.

The three products listed on top are for bars that they produce in-house!  They can't get enough raw materials to even make the stuff themselves.

At the bottom of the message, they list the other silver they're no longer making available.  Like Silver Eagle produced by our government, and Silver Maples produced by Canada.

Hey, no biggee.  It's just a blip in the market, right?

Not so much.

When this shortage first started showing its ugly head, the premium paid over the spot price for an ounce of silver stayed pretty constant.  Roughly $5 per ounce for Silver Eagles, $4 for Silver Maples, $2 for generic silver rounds (or bars) and $1.75 for junk silver (pre-1965 halves, quarters and dimes).

Folks figured this was just a market correction, and supply would re-emerge.  That's not happening.  This is a real, Honest-to-God, demand exceeding supply situation!  Premiums are going through the roof.  $9-$11 for Silver Eagles and Maples, $7-$8 for generic silver rounds, and (holy crap) upwards of $9 for junk silver and $22 for non-collectible Morgan Silver dollars (you're just buying these for their silver content).

[VERY brief tutorial on determining the equivalent spot price when buying Junk silver - which is sold by "per dollar face".  Each $1 in face amount - two halves, 4 quarters or 10 dimes, contains the same amount of silver.  0.715 of an ounce.  Mix and match any way you like - one half and two quarters, two quarters and five dimes - it doesn't matter, as long as it equals $1 face amount.

If you take the cost for $1 face, and divide it by 0.715, you'll get the dollar amount you're paying per full ounce of silver.  So, right this second, on APMEX.com, junk silver is selling for $23.32 per dollar face.  Divide that by 0.715 and you get $32.62.  That's what you're paying per ounce.  If you subtract the current spot price - $23.43 - you get a premium of $9.19 per ounce over spot.  You can do the same thing with the Morgan and Peace dollars, only divide by the 0.773 of pure silver per coin.

Back now, to our regularly scheduled rant.]

As you can see from the snippet taken from our regional supplier, this is now going into the gold market.  Right now, the only way I can get gold Eagles, Maples or Krugerrands is if they come through our door, or I pay retail prices from the large Internet sellers.  Not a lot of profit in that for the store!

Accept The Challenge

So, am I suggesting you go withdraw your life savings from your TBTF bank account and buy silver and gold at whatever price you can find it?

For goodness sake, no.  But open your eyes if they've been closed to what's going on.  It's REALLY time to maintain a defensive mindset with regards to money and finance.

What I AM saying is, if you've done your own personal family financial analysis, and you have a couple of bucks laying around that don't have a future purchase tied to them, get some gold and silver.  Stick it in a safe or in a can in the backyard, and don't plan on spending it for the next 5 years - minimum.

What I am saying is that if you've followed my advice and have developed new, multiple streams of income, put that money into gold and silver.

What I am saying is that if you've got some crap laying around the garage you might be able to convert into cash via a garage sale or Craigslist, put that money into gold and silver.

I probably should say that if you don't think our currency will be horribly debased by all of the Quantitative Easing good old Uncle Ben has been serving up, and by the mounds of debt being piled on by Republicans and Democrats alike, and that our government would never-ever take your money (say, via a Trading With The Enemy Act and the Emergency Banking Relief Act, Part II) then don't buy gold and silver.

But you should get that bump looked at, because clearly, you've fallen and hit your head....


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Copyright 2013 Bison Risk Management Associates. All rights reserved. Please note that in addition to owning Bison Risk Management, Chief Instructor is also a partner in a precious metals business. You are encouraged to repost this information so long as it is credited to Bison Risk Management Associates. www.BisonRMA.com

That Whole History Repeating Itself Thing

Today is, in my option, the most important and significant day in American history.  Not Independence Day.  Not Flag day, or Constitution Day, or Memorial Day.  No, I believe that April 19 in 1775 was the most important day.  It's the day our forefathers said, "Enough is enough" and shot back at the "powers that were" - in Lexington and Concord.   The famous, "Shot heard 'round the world."

Over gun control.

They had endured, "The Intolerable Acts" - a series of punishments put upon Massachusetts by their British overlords, primarily because of the Boston Tea Party.  They weren't happy about this series of acts, but they were still working "within the system" to get this fixed.

But when the British came for patriot's guns - at the militia weapons cache in Concord - the line had been crossed, and the Revolutionary War was on.
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It looks as though the idiotic, "feel good, accomplish nothing" universal background check bill that was shot down on Wednesday in DC has put some of this post-Sandy Hook hysteria to rest.  For now.

Obama, Feinstein, Schumer and all of the cohorts were apoplectic that their bill had gone down in flames.

"All in all, this was a pretty shameful day for Washington," Obama said, accusing the gun lobby of lying about the bill.

No, Barry, what is shameful is the way you paraded the parents of the dead Sandy Hook children around Capital Hill like so many circus animals.  Sit up.  Roll over.  Good booooooy!

"There were no coherent arguments as to why we couldn't do this. It came down to politics," he said.

Barry, Barry, Barry.  I got lots.

How about the fact that is wouldn't have done one damned thing to prevent another Sandy Hook, or Virginia Tech, or Phoenix, or ANY of the mass shootings?  That's what all of the circus animals were for, right?  To make sure that the grief visited upon them was never visited upon anyone else ever again.

Tell us, Oh Wise One, which of these shooting would have been stopped if the background check had been in place.

Not a one.  You can't legislate against law abiding citizens to prevent crazy citizens from acting crazy.

But that's not important to you, is it?  Your intent is to increase your control, and win political brownie points.  You know, those "politics" you so derisively dismissed.

I've heard others say that these background checks will keep guns out of bad guys hands.  Logic and emotion might say 'yes', but reality says 'no'.

So does your own ATF -

In fact, there are a number of sources that allow guns to fall into the wrong hands, with gun thefts at the bottom of the list. Wachtel says one of the most common ways criminals get guns is through straw purchase sales. A straw purchase occurs when someone who may not legally acquire a firearm, or who wants to do so anonymously, has a companion buy it on their behalf.

As you can see in the article by that right-wing, bible-thumpin', gun totin', tea party lovin' Public Broadcast System, the ATF agent doesn't once mention that bad guys go to gun shows or private parties to get their guns.

Strawman purchases.  Corrupt FFLs.  Illegal gun dealers.  Theft.

Not a single mention of criminals slipping through the system.  Know why?  BECAUSE THEY'RE CRIMINALS AND WORK OUTSIDE OF THE SYSTEM!  Why would they voluntarily participate in a system that could wind them in jail, when they have so many other, easier methods of obtaining their guns?

We've also had others like old soft-headed Joe Biden tell us not to be paranoid.  No one in the government is going to come grab your guns just because you're on some list somewhere.

Yeah.  Read it and weep -

For all of our more liberal leaning readers who continue to ask "what's so bad" about universal background checks before we've even seen the specifics, this is your answer. In New York, you can be placed on a "list"of people with no Second Amendment rights on the say so of any doctor who has questions. And it already happened to David Lewis. Thankfully, he's getting his guns back... for now. But what is the larger effect of this if we put it on a national scale?

Here in California, we have no law requiring guns be registered.  In fact, it's illegal to require it for purchased guns.  Yet any police officer in this state can pull up in front of any house in this state, punch in your name into his computer, and know the make, model and serial number of every gun you own.

How is that possible, when our guns aren't registered?  Because every gun purchaser in California must go through a background check for every gun they purchase.

Tidy, huh?

Oh, and if you're from out of state, have lost your mind, and decide you want to move here, don't think the list of guns you own will still be private information.  No, when you move here with handguns, the state considers you to be ... ready for this..... a firearms importer.  Seriously. 

Any person who moves into California and who brings any pistol, revolver, or other firearm capable of being concealed upon the person is considered to be a "Personal Handgun Importer"  ...

You have 60 days from your arrival date to get those nasty guns registered.  And if any of them don't pass muster with our list of authorized guns, they'll be seized and turned into plowshares.

You thought you were moving here for the sun and fun, and didn't realize you would be considered the same as an arms dealer by a totalitarian state.  Welcome, friend!

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What are our modern, "Intolerable Acts"?

The Boston Tea Party was about taxation without representation.  Yep, the Tea Act actually dropped the price of tea, but patriots held to their belief in liberty.  Let that sink in:  The wouldn't be bought off.  Liberty was more important than their pocketbooks.

We can't say the same.

ObamaCare.  Thrust upon us, but not upon those who wrote it.

The Federal Reserve Bank.  An unelected bureaucracy which taxes you via inflation because of their "printing" of insane amounts of fiat currency.

We have a couple of states, and a number of cities in which no part of the Second Amendment exists.

The USA PATRIOT Act.  The NDAA.  Obscene regulation at every level of national, state and local living. Asset forfeiture laws which defy common sense and common decency.  Roadside checkpoints - in the name of safety - which fully ignore the Fourth Amendment, yet are the law of the land.

A federal Leviathan which ignores the spirit of the Constitution, and the letter of the Tenth Amendment.

We have a surveillance state which would make Orwell shudder.  All legal.  All blessed by We The People.

Is there anything that could tip us over the edge?  Drones over American?  Or would it take a drone strike over America?

No.  None of them would move us as our forefathers were moved.  We're so soft and gooey, and such well-trained poodles, we don't dare nip at master's hand.

The only history we'll be repeating will be that of former great nations that declined into oblivion.  We'll no longer proclaim, "Live Free Or Die!", instead replacing it with, "Thank You Sir, May I Have Another?"
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One last thought:  The patriots were successful, in part, because they knew the British were coming to Concord, and they moved their weapons cache.

Oh, never mind.

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Copyright 2013 Bison Risk Management Associates. All rights reserved. Please note that in addition to owning Bison Risk Management, Chief Instructor is also a partner in a precious metals business. You are encouraged to repost this information so long as it is credited to Bison Risk Management Associates. www.BisonRMA.com

Rotting Our National Soul

I'm a dinosaur.  I'm a throw-back.  I'm an idealist.  And, as one of my bullion customers recently noted - only half jokingly - I'm a, "fucking idiot."

He may be right.

He recently became unemployed, and started drawing monthly UI payments.  I told him how a few years back, I had been drawing $2000 each month between unemployment insurance and "Barry Bucks" - additional money coming from the federal government.

Every day, I would send out resumes, and every day I would get no response.  No one was looking to hire a nearly 50 year old bank executive expecting a six-figure salary.  I knew I was going to have to go into business for myself if I was going to maintain my lifestyle.

The problem was, that $2000 a month made it too easy to put stuff off.  I got, "manana-itis" - why do today what you can put off until tomorrow?

I had been drawing the monthly $2000 for a year, dutifully completing the paperwork, listing the companies I had contacted for work.  It then struck me - hard - that this money was killing me.  It was sucking the work ethic right out of my being.  It was rotting my soul.

I had, at a minimum, 6 more months of payments coming - $12,000 - possibly more (I don't know if that 99 weeks of UI payments plan ever passed).  I stopped filling out the paperwork to the state, and the checks stopped coming.

THIS is what drew the comment from my bullion customer.  He was dumbstruck that anyone would voluntarily stop accepting free money from the state.

[BTW, this training business was up and booking students two months later, and the bullion business was up and running about a year after that,]
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My postings have been light of late because of this sense of helplessness to stop this madness.  And the sense of revulsion.  This obscene expansion of the Nanny State.  It's like pushing a string uphill.  Nothing will ever change until it all collapses.

Why bother fighting the inevitable?  Yet, here I go again!

I'm sure you've all heard the latest and greatest - we have 14 million Americans getting disability payments [link].

Fourteen million Americans get most (if not all) of their "livelihood" from the federal government.  That is mind boggling.  For God's sake, there are ONLY 12 million unemployed Americans.  Not one of those folks on disability is counted in the unemployment numbers.  WTF?  Do the math to figure out the real unemployment rate.

On top of that, nearly 50 million Americans are getting food stamps.  Holy shit.  That is more people than the entire population of Spain.

Still, food stamps are for chumps.  Grab the Disability Brass Ring, and get a check (and health insurance) each month.  Sweet!

Not a bad gig if you can get it, and apparently, you can get it pretty easily.
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From the NPR (shockingly) article link above on the rise in disabled persons -

"We talk about the pain and what it’s like," he says. "I always ask them, 'What grade did you finish?'" 

What grade did you finish, of course, is not really a medical question. But Dr. Timberlake believes he needs this information in disability cases because people who have only a high school education aren't going to be able to get a sit-down job. 

Dr. Timberlake is making a judgment call that if you have a particular back problem and a college degree, you're not disabled. Without the degree, you are.

Nice.  We have doctors out there playing God with MY MONEY - giving it away to you if you've made the choice NOT to get more than a high school education.  YOU'VE made the choice to limit your ability to earn a living, and are being rewarded with MY MONEY for doing so.

Think that's it?  Think again.  If you're a disabled kid - someone who has never worked before - you can get some Nanny Bucks as well.  From the same article -

When you are an adult applying for disability you have to prove you cannot function in a "work-like setting." When you are a kid, a disability can be anything that prevents you from progressing in school. Two-thirds of all kids on the program today have been diagnosed with mental or intellectual problems. 

Jahleel is a kid you can imagine doing very well for himself. He is delayed. But given the right circumstances and support, it's easy to believe that over the course of his schooling Jahleel could catch up. 

Let's imagine that happens. Jahleel starts doing better in school, overcomes some of his disabilities. He doesn't need the disability program anymore. That would seem to be great for everyone, except for one thing: It would threaten his family's livelihood. Jahleel's family primarily survives off the monthly $700 check they get for his disability.

Someone, PLEASE, tell me why his family gets $700 a month.  His disability has never prevented him from earning a living and contributing to the household income, BECAUSE HE'S A KID AND HAS NEVER WORKED.

If this is for special classes, or a tutor, why would the money go to the family?  Why wouldn't it go to the tutoring company directly?

Jahleel's mom wants him to do well in school. That is absolutely clear. But her livelihood depends on Jahleel struggling in school. This tension only increases as kids get older. One mother told me her teenage son wanted to work, but she didn't want him to get a job because if he did, the family would lose its disability check.

Finally, some truth.  Don't work.  Don't aspire to greatness.  Hell, don't aspire for self-sufficiency.  Just sit on your ass and collect a check.

Rotted soul and all.


Accept The Challenge

If you're a "fucking idiot" like me, the thought of living off the largess of the state makes you sick to your stomach.  You know if you're capable of working or not.  You can't lie to yourself.

If you were hurt on the job, that sucks.  Get re-trained and start back on the path to self-sufficiency.  Right now, only 1 percent of the folks that are deemed disabled get back to work.

Sorry, but that's just a pile of crap.  I am absolutely, positively certain that there are more folks on the disability rolls who aren't disabled, than there are folks with real needs.  But the takers, the bureaucrats and the politicians have no incentive whatsoever to reduce these rolls.  It's in all of their best interests to keep growing this boil, not lancing it.

When it does pop, though, it's gonna be messy.

Get off the crack pipe of government benefits before it rots your soul to the core.

For the rest of us, it becomes a defensive battle.  And honestly, probably a losing one, depending on how far down the line you are in the execution of your self-sufficiency plans.

Our taxes MUST go up.  This will be accomplished ala Cyprus by a bold cash grab, or as we do here in America, via the insidious silent tax of dollar devaluation.  We're looking at more or increased regular taxes as well.

Carbon taxes.  The IMF calling for a world gas tax.  I'm certain we will see a VAT (Value Added Tax) at some time in the not-so-distant future.

The way we combat this future money grab, is to earn and deploy more cash NOW.

If we're not buying grid electricity, then we're not paying excise taxes.  If we're not buying groceries, then we're not (going to be) paying for a VAT tax.  If we're not having to drive to a job, we're not paying oil and carbon taxes.

The road to our personal financial salvation is - as I've said a gajillion times before - to have multiple streams of income.

A new book I've been reading on the subject is, "The 4-hour Workweek".  It gives tons of practical ideas on how to build and run multiple businesses at the same time.  The key concept is, "I want to be the owner, not the boss."  You specifically design the product or service company to NOT need you managing every aspect of the business.

• Sell something you know, to a market you know - I'm not going to sell acne products targeted at teen-aged girls because I have never been a teen-aged girl and never had acne.
• Shrink your market, don't expand it - focus on a distinct segment of a larger market.  I'm not going to sell to all retiring Baby Boomers, I'm going to sell to, for instance, males that like guns and shooting.  This lets me focus my marketing dollars, and charge premium prices.
• Test first - assume nothing.  The book discusses a number of ways to float a trial balloon at your target market so see if it has any viability.
• Design it to not need you - you bust your butt building and testing the market - for a couple of months - and then step away.  You design it with outsourcing and delivery channels that don't include you running to the post office every day.
• Repeat - 

Think like the big boys.  Start a Corporation, LLC or partnership (warning!  warning!) via Legalzoom, move to low- or no-tax states to increase your net income.  Keep each bite of the business apple a small one.

I don't want to build the next Microsoft or Ford Motor Company.  That is a magnet for taxation and third-party interference in my life.  I want a bunch of small, inconspicuous companies, each trickling a steady stream of income my way.

The key is to then deploy your newly acquired assets in a manner that will reduce or eliminate your need for interaction with the taxed world.  Arable land and the tools and resources to work it.


Here are some ideas for businesses.  Just a thought:  My generation - the Baby Boomers - are retiring at the average rate of 10,000 people PER DAY.  There's got to be a niche or two you can exploit in a group that large -

http://www.komando.com/columns/index.aspx?id=13852&page=1

http://thevirtualattorney.com/blog/13-top-businesses-start-2013-under-30-crowd

Trends
http://www.entrepreneur.com/article/224977

If you're approaching retirement age, read the Social Security rules for how much you can earn without being penalized.  Corporations have the ability to disburse dividends to owners.  The upside is that these "investment earnings" don't affect your Social Security payments.  The downside is that they are not a deductible expense for the corporation.  Do the math to see if there's a "sweet spot" where you can use the SSI rules to your advantage.

Trust me, the rich do it every day.

Lastly, if you're not good with numbers, fix that.  Seriously, take a community college accounting course.  If you don't know how much is coming in, where it's coming from, and how much it's costing you to make those dollars roll in, you're going to get slapped around silly.

Know your numbers.


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Copyright 2013 Bison Risk Management Associates. All rights reserved. Please note that in addition to owning Bison Risk Management, Chief Instructor is also a partner in a precious metals business. You are encouraged to repost this information so long as it is credited to Bison Risk Management Associates. www.BisonRMA.com