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Sunday, August 28, 2011

All That Glitters...

With the big-time renewed interest in gold, a comment/question from commenter "LJ" -
Hey Chief,

Have heard this comment before, and always in passing : depending on the country of origin.

If gold is gold, and coins, bullion etc. is minted at 99.999.........% purity, what does the country of origin have to do with the price?

Thanks

L J
Great question.

All one ounce gold coins are not minted to .99999 purity, yet all contain an ounce of pure gold.  Huh?

The American Gold Eagle and the South African Krugerrand are each minted in 22 karat, or .9166 pure.  BUT, the coins weigh 1.09 troy ounces, and thus contain a full ounce of pure gold (do the math).  The American Gold Buffalo, Canadian Gold Maple Leaf, Austrian Philharmonic, Australian Nugget or Kangeroo and Chinese Panda are all .9999 coins, and weigh 1 troy ounce.

You then have private mints that produce gold ingots.  The two best know producers are Credit Suisse and Pamp Suisse.  Both produce .9999 gold ingots/bars in varying weights, including one ounce.

So, they all contain an ounce of pure gold, yet prices per coin/ingot can vary wildly?  Why dat?

Confidence and prejudice.

Generally speaking, a coin produced by a sovereign nation will carry a premium over a private mint.  People believe that government controlled production standards are higher than private production standards.  When it comes to minting coins/bullion, they're generally correct.

What's this prejudice stuff?  Home turf wins.  Americans will pay more for an American coin.  IN GENERAL, the pecking order after that goes to our neighbors.  Canada in this instance.  Then it goes to English speaking countries (Great Britain and Australia).

The gold Chinese Panda and SA Krugerrand are generally an exception to this rule.  The Panda is usually just behind the Canadian Maple Leaf, and the Krugerrand is almost always at the bottom of the price bucket.  Honestly, I think it is a bit of a "hang over" from the apartheid days, and some people are just not comfortable owning them.

Our other neighbor  - Mexico - is also near the bottom of the price barrel, but I think that is more due to the size of the coin.  Their most popular gold coin - the 50 peso - weighs 1.205 troy ounces.  When buying the coins, people have to do some math to figure out if it's a good deal, and they will usually just say, "forget it" and focus on the coins that contain one ounce.

Interestingly, Mexico does make 1 ounce gold coins (the gold Onza and the gold Libertad) but I have only seen a few come into the shop.

ROUGHLY, here is the pricing - (this is with spot gold at $1828 per ounce)

American Eagle - $1930
American Buffalo - $1935
Canadian Maple Leaf - $1910
Chinese Panda - $1900
SA Krugerrand - $1890
Pamp Suisse or Credit Suisse bar - $1890

I want to talk a bit about US "old gold" and some deals you can get on some of these coins.  I"ll also discuss the best and worst times to buy and sell.  I'll do that in my next post - tomorrow, as I have an appointment to teach one of my sons and his buddy how to brew beer.

I'm getting all teary..... ;-)


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Copyright 2011 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

Wednesday, August 24, 2011

Liberty

I was listening to Mark Levin on the radio on Monday.  He had had a caller who stated she was, "a fiscal conservative and a social liberal." He noted that he didn't understand what that meant.  It was a foreign concept to him.  He proceeded to abuse the concept and the caller.

Just as liberals denigrate the Tea Party as terrorists and heartless baby-killers, many conservatives berate us social liberals.

By my definition, a social liberal is someone that believes that the individual will generally make the right choice about their own life.  All by themselves. We believe our personal moral compass is superior to that of a bureaucrat in DC, in a state capital or in a city council chamber.

We don't want to be told how to live our lives.

We also believe that if our personal choices negatively impact the life of another citizen, punishment should be meted out by the government.  THAT'S the role of government:  To ensure all citizens are able to live their lives as they see fit.  If we negatively impact another, we pay the price.  Government is NOT here to compel others to live their lives in some proscribed manner.  Well, it's not supposed to be here for that purpose.

I live my life as a social conservative, but won't impose my personal moral code on others.  I expect the same courtesy from others.
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When conversations arise about my political beliefs, I give the "fiscal conservative, social liberal" spiel.  I usually get something along these lines -

"What!?  You think pot/heroin/meth should be legal?"  Yep.  Just like they always were prior to the turn of the 20th century.  If you want to ingest poison, go right ahead.  As a country, we did pretty well up to that point.

"What!?  You think prostitution should be legal?"  Yep.  Two adults want to have sex.  Let 'em.  What's the difference between a $100 dinner or a $100 bill paying for it?  I have no desire to buy a hooker, and if you want to do so, my life is unaffected.

"What!?  You think gays should be able to get married?"  Yep.  How does their marriage negatively impact my life?  It doesn't.

"What!?  You disagree with DUI checkpoints?"  Yep.  Could there be a more in-your-face affront to the fourth amendment?  What part of, "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized," is ambiguous?

To add insult to the unconstitutional injury, you can be arrested just for having alcohol in your system.  You haven't harmed anyone in any way shape or form and, just as importantly, you haven't given law enforcement any probable cause.  You're not swerving.  You're not speeding.  You're not side-swiping parked cars.  You're simply on a public road that the government has chosen to perform an illegal search.  It is presumed that if you have alcohol in your system you will harm someone.  You might do it.  How can someone be punished for an act they MAY perform?

Many people are able to get at least a little miffed when some level of government does something stupid, such as banning a fat, or prohibiting a "dangerous" food like unpasteurized milk,  But when the government passes a law that matches with their personal moral beliefs - even when it goes against the Constitution - they look the other way.

That sword cuts both ways.  This is no better than when a liberal supports a law banning cigarettes or giving all who ask a big chunk of my tax dollars because they are, "under-served" or "disadvantaged".

Painting with a very broad brush (I know not all conservatives or liberals think alike), conservatives support laws restricting social behavior, liberals support laws assuming the poor have no gray matter between their ears.

I support neither.  I support personal liberty.
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The underlying belief of both conservatives and liberals is that everyone else is too stupid to run their own lives.  The concept of liberty is just that - a concept.  In practice, well, it's just too much freedom for all of those poor saps who are too stupid to make the right choices.

If we don't have drug laws, everyone would be a strung-out heroin addict or rotted-teeth meth head.  Really?  Let me see a show of hand of ANYONE out there that would suddenly try heroin or meth if it were legalized tomorrow.

It's an obviously ridiculous concept, considering I can get both of those drugs TODAY if I wanted them.  I can also get pot, cocaine, Ecstasy, 'shrooms, - whatever I want and which are all illegal - in whatever quantities I want.

Yet for some reason - seemingly incomprehensible to conservatives - I don't do it.
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Conservatives such as Levin tend to use fear as their hammer.  As their justification for imposing their morality on others.

"What about the children?"  the conservatives wail.  "If we make it legal for adults to snort coke, more kids will do the same thing."

Uhm, not so much.  If a parent has not taught their child that abusing any drug - legal or not - will harm them, simply making it illegal to do so will make no difference.  If the kid has no parent, it's the same deal:  Just because it's illegal won't stop the kid from using drugs.

Kids learn by example.  If their parents abuse drugs or alcohol, they are more likely to do so themselves.  But, if a kid sees his favorite Uncle Bob dead in a gutter from a heroin overdose, that has a chance to make a difference.  The legality of the substance is irrelevant.

The total failure of, "The War On Drugs" is yet another proof-positive example that vice laws don't work.  Just as during the US alcohol prohibition period, the prohibition of drugs has done nothing to stop availability, and has created an enormous crime underworld.  The drug producers and sellers use violence to protect their product and territory.

Count the dead bodies on both sides of the Mexican border.  Count the number of dead bodies in inner city neighborhoods.  How many of them are directly related to drugs being illegal?  Not just related to drugs, but to drugs being illegal.  The VAST majority.

Unconvinced?  How many murders occurred last year that were related to the business of buying and selling alcohol?  If there were any at all, it would be statistically immaterial.

It has also created a drug-induced cottage industry for the government.  Prisons are bulging with offenders.  We have entire government agencies tasked with nothing other than eradicating drugs.  Local police departments include drug-related property seizures in their annual budgets.

Obscene amounts of money, pissed away, chasing some utopian vision of a drug-free society.  Sounds kinda like Obama's "Hope and Change" campaign, no?  "Hope" takes no effort, but is expensive as hell.

If your moral teachings dictate that homosexuality is a mortal sin, will the fact that two guys down the street are married to each other increase the likelihood that your kid will "turn gay"?  I didn't think so.

You don't have to go to their churches.  You don't have to go to their bars.   You don't have to associate with them in any way whatsoever.  YOU decide how to live your life, not them.

There has NEVER been a law prohibiting a substance or private act which has successfully eradicated that substance or act.  Never.  Why spend time and resources trying to control the life of someone else whose acts or beliefs have no impact on your life?
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Right now, the conservatives embrace the Tea Party.  They walk in lock step that less money should be spent by government.  They're pals.

I don't think this relationship will last.  Eventually, social liberties will be Top O' The List, and the liberals will embrace their new Tea Party brothers and sisters.

Personally, I have a simple litmus test for any issue:  Is it Constitutional?  If it's specifically allowed or prohibited by the Constitution, that's how I vote.  If it's not mentioned, it's a state or individual issue.

Drugs and alcohol, prostitution or gay marriage are not mentioned - or reasonably inferred - in the Constitution.  The country recognized this when they changed the Constitution to prohibit alcohol, and again when they repealed the prohibition.  They had to Constitutionally prohibit alcohol, since no federal power previously existed.

That makes these state or individual issues, per the ninth and tenth amendments.  As such, California could allow Hookers-R-Us franchises, and Georgia could ban them.  I can move to the state that has laws more closely aligned to my personal ethical code.

Accept The Challenge

When a law is proposed, give it the old Constitution test.  If it doesn't past muster, fight to defeat it, even if it meets your personal moral beliefs.

Government control of how any of us live is bad.  I don't want a liberal taking my cigarettes any more than I want a conservative arresting my neighbor for his Swinger Club membership.  Even though cigarettes are physically damaging, and swinging is morally bankrupt, we're both adults and have accepted the consequences of our actions.

Leave us the hell alone.

Exercise your liberty.


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Copyright 2011 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

Tuesday, August 23, 2011

East Coast: Grow A Pair!

OK, living in California, I'm around earthquakes all the time.  They get the heart beating, you chuckle nervously and then you finish your tuna salad sandwich.

I also get it that it is different.  They don't get many earthquakes back east.  It's like when we get a tornado in California.  It ain't normal.

You mention that some guy in a trailer park lost his Rubbermade shed, and you move on.

Listening to the wall-to-wall coverage of the 5.9 earthquake that hit the east coast, you'd think the place had been leveled.  Mass destruction, gas mains spewing columns of fire, children and their puppies fried to a crisp -

Earthquake rocks East Coast

Is it time to consider earthquake insurance?

Earthquake causes venue evacuation

And the greatest disaster of them all

Earthquake interrupts President Obama's golf game

EVERY cable news network was running nothing but earthquake news, even Fox Business. Unless the NYSE had been crushed under a pile of rubble, why in the hell were they covering this?

One of the talking head bimbetts was all a-flutter with this news - "The White House will be releasing a statement on the earthquake. We're not sure if it will be in person, or via a press release, but we'll let you know when it happens."

I can hardly wait.  "Uhm, nuthin' happened.  No injuries, little damage, lots of soiled panties.  The President will release a comprehensive plan to address the soiled panties dilemma after he finishes the back nine."

Oh, how I long for news on the Kim Kardashian wedding...

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Copyright 2011 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

Sunday, August 21, 2011

Grasping For Straws or Naa Noo Naa Noo

This is desperation in the extreme -
"A preemptive strike would be particularly likely in the early phases of our expansion because a civilization may become increasingly difficult to destroy as it continues to expand," the study says.
Sounds serious.

Is this a Wikileaks item that was pilfered from some top-secret military planning document?

Perhaps it's the game plan of some right-wing, gun-toting, bible-squeezin' Tea Party militia intent on cleaning up society.

It could also be them thar pesky terrorists, and be the planning of some Al Qaeda cell intent on bringing down America.

Sorry, it's not as rational as any of those. It's from some NASA scientists. Really.  The issue they think might bring this on?

Global warming.

Huh? OK, so who do these government employees - with clearly WAY too much time on their hands - think might deliver this fatal blow?

Little green men.
"Humanity may just now be entering the period in which its rapid civilizational expansion could be detected by an ETI (extraterrestrial intelligence) because our expansion is changing the composition of the Earth's atmosphere, via greenhouse gas emissions."
Let that sink in: Aliens are going to destroy the earth, because, well, we're destroying the earth.
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YO! Clear-headed politicians and public figures that think man-made global warming is a hoax:  Take this gift and run with it.  Despite the incontrovertible evidence that the global warming "scientists" were making up their "facts" from whole cloth, Al Gore and his minions are stoking the fires once again to try and get the sheeple to drink the CO2 Koolade once again.

Stop him.

Club these charlatans over the head with this.  Rub their nose in it.  Use this gift to humiliate them.  Oil your propaganda machine with this greasy little tidbit.

Make the guy standing on the corner with the colander on his head to keep the alien mind control beams out of his melon, seem like a sane, reasonable person....

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Copyright 2011 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

Saturday, August 20, 2011

What A Time - Bubble or Trend?

Man o man, what a couple of weeks this has been.  We have been absolutely slammed in the precious metals shop.  Gold has skyrocketed, and people are buying and selling like crazy.

We've never seen a volume like we're seeing with people selling old jewelry.  I'd say we've had triple our regular volume.  We kind of have had a perfect storm:  We recently started a new marketing campaign, our primary competitor closed up shop for a few weeks, and the aforementioned spike in gold.

What has been very cool is that the new customers that used to go to our competitor have said - without exception - that we are their new shop.  Higher prices paid, better customer service, and a feeling that we actually WANT their business.  They are ours forever!

We've hired three part-time people in the last two weeks, and are looking for two more.  This influx of volume is putting a stress on all of us.  For us owners, it's been 7-day weeks, late into the night.  We don't want to burn out our employees, so getting the extra help is VERY important.

Part of our strategy to "drive a stake through the heart of our competitors" is adding yet another marketing tool that will put us in front of 1 million sets of eyeballs a year, plus the addition of TV commercials in the next month or so.

Doin' our part to stimulate the economy!
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The sale of bullion - primarily gold - has also jumped significantly.  Our regular customers are stocking up, big-time, and the new folks are kicking themselves in the butts for not moving sooner.  The most common refrain:  "When gold hit $1600, I figured there would be a big correction and I'd swoop in and buy at a big discount."  Yeah, about that....

As former prez Billy Jeff Clinton noted, "It's the economy, stupid...".  We'll continue to have minor corrections to the market, but the trend will continue upwards until the federal government decides to show some fiscal responsibly.  Can I see a show of hand from anyone that thinks that will be happening any time soon?  Hell, any time in the foreseeable future?

Something I've found very interesting is the increase in traffic from the local Air Force Base - Travis AFB.  Everyone from Airmen to full-bird colonels.  These guys are as tuned-in to the economy as anyone who enters our shop - probably more so.  These guys come in knowing they want PM's and just need some direction as to where to start and develop a personal strategy.  I can't even count the number of these guys that are selling their silver ETFs and buying physical.

Whether buying or selling, we give these guys a break on pricing, and the 'word' is apparently getting around the base.
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In speaking with our gold refinery, we're not alone.  Their intake has been off the rails.  Same story with our bullion wholesalers.
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A dissenting opinion: ("Why the gold bubble will soon burst").

Hey, they're college economics professors, so I guess they're smart.
“But in two, five or 10 years, prices could be lower than they are now. There’s a lot of fluctuation. Prices have gone from $200 an ounce to $1,800. That just can’t continue,” Thomas said.
Prices could be lower? Great prediction there, sport. They could also be higher, or they could be the same. Your insight is stunning.  Besides that tingling feeling running down your leg, what is the basis of your kinda-sorta prediction?

And O Wise One, explain why the run up can't continue. If the federal government continues to create money from nothing, PMs will continue to increase.

That's 'economics', ain't it?
As the federal government attempts to pay interest on its growing debt, Thomas said the chance of increased inflation will go up.

As this happens, gold prices may continue to fluctuate as investors pull money out of stocks.
Hey, cupcake, why do you think they're pulling their money from stocks? There's no THERE there. Business in America is sucking wind. The actions of the fedgov are making the business environment more difficult, not easier.

Why would you invest in the Titanic after it's already taking on water?
However, as the deficit slowly decreases, gold prices could fall by 50 per cent.
Huh?! 'Deficit' and 'decrease' in the same sentence? Don't you watch the news, read a magazine or glance at the Internet? Even with the most (supposedly) draconian budget proposal - Congressman Reid's - we still INCREASE the national debt by $5 TRILLION over the next decade.

In case it's not covered in one of the Keynesian economic books you use, the debt is the accumulation of the annual deficits. That means, on average, we'll be having annual deficits of a half trillion dollars a year for as far as the eye can see.

And if you think the fedgov will be able to control its spending to ONLY a half trillion bucks a year over incoming tax receipts, well, I've got some James Brady Signature Series Tactical Assault Rifles (TM) I can sell you... Great pricing, just mail me the cash, and James himself will deliver the rifles right to your front door. Promise.
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Now, with all that being said, will there be a market correction downward?  Probably.  Will it be the massive 30% drop that some bulls are predicting?  Probably not.  The economics simply don't support that happening.

In our PM shop, we're buying weaker (lower) than we normally do for bullion coins.  Our margins are tighter on bullion than it is on scrap gold, so we're covering out butts.

The benefit for our buying customers is that we're selling fractional gold coins (those under an ounce) at discounted premiums.  Where a quarter ounce coin would usually command a 10% or so premium over spot, we are selling them for 5%-8% depending on the country of origin.  A quickee survey of our online and brick-and-mortar competitors seems to indicate others are doing the same thing.

If you're thinking of buying gold, and are looking for fractional gold, now would be the time...
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In other news, I think I've mentioned in the past that one of my brothers is a Police Chief.

His department had recently set up booth at some community fair.  It's a part of his Community Policing strategy.  Get out, know the folks, work in concert with the community instead of in an adversarial position.  What a concept, huh?

So, at this booth, they had members of the SWAT team.  They were showing all of their gear, and were allowing folks in the neighborhood to (gasp!) handle the unloaded weapons.  The gall!

One of the people that handled an "assault rifle" was some kid.  With his parent's permission.  With his parents present.

Some gun-grabber snapped a picture of the kid with the rifle, and sent it to a gun grabber city supervisor.

Remembering that this is California, any guess how that turned out?  Yeah, it hit the fan.

My brother is pushing back, and fighting fire with fire.  Lots of radio and newspaper interviews.  He's got the mayor and some of the members of the city council backing him up.

This is so incredibly stupid, it hurts my head.  Clearly, the child needs to be removed from his home, and the parents thrown in the gulag for endangering him in such a careless manner.  Perhaps summer Re-Education Camps until he's 18.  I'm waiting for the Brady's and Mothers Against Killer Guns, Even Plastic Toy Ones to keep up the pressure.

Hang tough, bro...


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Copyright 2011 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

Monday, August 8, 2011

"I'm Mellllllllttttttttingggggg!!!

An official, "holy crap!" - at this moment, gold is only $3.50 less per ounce than platinum.  A year ago, that difference was about $350 per ounce!

Of gold, silver, platinum and palladium, only gold is in a "bull" (upward trending) market right now.  The other three are in a "bear" market trend (for some reason I don't understand).

I believe we'll see a correction over the next couple of days with gold, but it will continue its upward overall trend until our government changes its inflationary/dollar devaluing policies.  I also think the other three precious metals will resume a bullish stance in the very near future.

This is obviously a very simplistic view of PMs, and I'm just some guy on the Internet - so don't sink money into anything without doing your own research.

That being said, if ANYONE out there has a differing point of view that has some logic associated with it, I honestly want to hear it.  At this point in time, I see nothing to stop all PMs from continuing their general upward trends.
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All of our global buddies - and our global creditors - were all lining up this weekend voicing their support of our debt.  In unison, they all say it's 'da bomb' and the best thing since sliced bread.  It was a regular love-fest.  The dollar is actually up in relation to most world currencies right now.

It will be interesting to see how willing they are to keep buying our debt paper.  Putting their money where their mouth is, so to speak. 

I think they will be much less enthusiastic in reality.  The Federal Reserve will be warming up the dollar presses (and the keyboards for the electronic version) to be the go-to guys for our debt.

I think the broader markets understand this, and that's why we're seeing this run-up in gold, and a cratering in paper wealth, such as stocks.  The Dow Jones average is right now down 370 points - almost ready to cross into the 10,000 range.
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I don't understand why crude oil is dropping like it is.  It's down to around $83 a barrel.  I heard some mention of an expected drop in global demand.  The "experts" are saying that gasoline should drop by 30 cents a gallon over the next couple of weeks.

Sweet!  I hope they're right.
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I swear, this is what it must have been like sitting on the deck of the Titanic watching the iceberg's approach.  The deckhands telling us to disregard that little "ice cube" out there, while touting the strength of the ship's superstructure.

"No chance of any harm, regardless of the dangerous path we're taking.  Dontcha know, this ship is too big to fail?"
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Just checked gold and platinum.  Gold is at $1718 and platinum is at $1717.  And the Dow is down 417, only 26 points from the 10,000 range.

The Wicked Witch is melting........


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Copyright 2011 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

Tuesday, August 2, 2011

Graft and Guns

Hallelujah!  We've been saved.  Both houses of congress and the prez signed off on the debt ceiling bill and the world is once again humming along, smooth as can be.

THIS JUST IN!  Apparently, the rich bastards with money - you know, the ones that don't pay their fair share of taxes - disagree.  They all sold their stock and bought precious metals.

Waddup, dog?  I thought this "deal" was a give-away to the rich guys, and they'd be celebrating in the streets with this gift granted them by King Barry.  That's the impression you got when listening to the MSM after the deal was announced this weekend.

They're acting like they think this will negatively affect the dollar, the economy and the jobs market.  How can that be?  King Barry said the boo-boo was all better now...
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The picture up top (h/t to GunRightss4UsAll for the link) is from this posting [link] at USdebt.keptocracy.us providing us with a visualization of what millions, billions and trillions of dollars look like.  This picture, in particular, is what our national debt - roughly $15 trillion - looks like in $100 bills.

It's an eye-opener.  Wait until you see what the pile looks like when you've got all of our unfunded liabilities for Social Security, Medicare and the rest of the mess included.

We Be Screwed.
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BUT WAIT, THERE'S MORE!  Man, it sure hurts when a commie calls you out.  From Ruskie dictator Putin -
Russian Prime Minister Vladimir Putin is comparing the U.S. to a parasite following the debt limit debate -- quote -- "they are living beyond their means and shifting a part of the weight of their problems to the world economy. They are living like parasites off the global economy and their monopoly of the dollar."
Now, Vlad, baby, it is OUR dollar to monopolize, nyet?  The rest of your commie rant?  Spot on...

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I got an interesting email from a woman who is signed up for this weekend's gun class.  She's wigging out!

I send all of my students a release form that basically says that they'll be around guns with live ammo and they could end up hurt or dead (wow, don't you wish attorney's could write that succinctly?).  She wanted to know if I do the class on a private basis, because she's afraid of being around so many newbie gun users.

I told her that when you're at a public range, you have no idea of the experience level of all of those shooters around you.  You're going to have professionals to novices, confident shooters to idiots showing off to their girlfriends (I keep my eyes GLUED to those guys when I'm in the range).

I explained that with this class, everyone will have just finished 2 1/2 hours of safety training.  No one in the range will be more conscious of the safety rules than she and her fellow classmates.

I told her I do teach the class on a one-on-one basis, but it will cost her about 3 times the amount of the class with other students.  And you just don't get as much from the private lessons.  Having fellow students pose questions and vent their fears or concerns has a LOT of value.

We'll see what she wants to do....
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Speaking of guns, I was working from my house today, and had an old episode of Perry Mason on the tube.  I was on the phone with one of my brothers, when I started yelling at the muted TV screen.

Some Bozo was shooting a pistol off the back patio of his home, when some lady walked up (his 'personal secretary' I presume).  He still has the gun in his hand and flashes the muzzle right across her chest as he is gesturing while sitting down.

Not two minutes later, another guy with another gun is greeted by some other guy, and he basically does the same thing.

Holy crap!  Drove me crazy.  Always the Chief Instructor, I guess... ;-)
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Another interesting tidbit from the show:  During the trial, Perry makes note that there was only one murder bullet, but two murder guns (queue dramatic music).  The bad guy switched the slide and barrel from the murder gun and put it on the same model of gun that was owned by his client.

The interesting note was the comment that Perry made while selling his idea - "I went down to the store and bought this gun today..."  What?  California used to be a free state?  Be still my beating heart...
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I sent my above-mentioned student some statistical information on gun safety.  If you haven't been there in a while, drop by Gun Facts [link - PDF].  They have a buttload of gun-related facts - all of which are included with citations so you can verify any fact presented with your own two eyes.

My favs are the Accidental Death and Concealed Carry sections.  I love seeing gun-grabbers stumblin', bumblin' and fumblin' when you present them with facts, and not "It's for the children!" stories.

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Copyright 2011 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

Saturday, July 30, 2011

Compromise

Let's get some definitions-

com·pro·mise/ˈkämprəˌmÄ«z/

Noun: An agreement or a settlement of a dispute that is reached by each side making concessions.
Verb: Settle a dispute by mutual concession.
Sounds about right.

We have been hearing the Democrats and their press corps - ad nauseam - hammering the Tea Party members of Congress to compromise on the debt limit.  It's for the good of the country.  It's for the good of the world.  It's for the good of THE CHILDREN!

Lumped into that ad nauseam crowd are the old-school Republicans like John McCain who liken the Tea Partiers with trolls and hobbits.  Really?  One reason I could never make it in politics is that I would have called out "Bought and Paid" McCain.  I would have publicly told that corrupt SOB to shut his pie hole.

"Hey, John.  Compromise is what you've done your entire career.  Look what that's done to your bank balance and what it's done to the country.  You're rich, we're toast.  Thanks, but your input is no longer required or desired.  Now STFU."
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How about this -

prin·ci·ple/ˈprinsÉ™pÉ™l/Noun

1. A fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.
2. A rule or belief governing one's personal behavior.
It seems that very few in either house of Congress understand principle.  They understand re-election.  They understand corruption.  They understand compromise.  But principle?  Not so much.

The screeching press won't get off the compromise bandwagon.  Principle is secondary to getting the deal done.  They just can't understand why these Tea Partiers are such sticks in the mud.  Principle is irrelevant.

If the Republicans had two brain cells to rub between them, they'd be hammering the Dems on compromise vs principle.

"Hey Senator Harry.  Here's some compromise for you.  You compromise and do away with the Department of Education, most of the EPA, the NLRB, and the NEA, and we'll compromise and and give you a 1 year debt limit increase.  Koom-bye-yah, baby!

"Oh, and Harry - you go first.  Once we see them being dismantled, we'll give you the debt limit increase.  You see, we've been fooled before into giving up our half first, and somehow, your half never comes to pass.  Not this time, cupcake."
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Of course, it's not really about compromise.  It's about protecting turf, paying off constituencies, growing government, and continuing down this path to national destruction.  The idea of compromise is the hammer and the weak spine of the Republicans is the anvil.

Save compromise for the little stuff.  The kind of pizza you're going to order.  The color of the accent wall when painting your house.  You don't compromise when principle is involved.
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"Anytime we want to borrow, it's going to cost us more."  Regardless of the TV or radio station I listen to, or blog, website or periodical I read, this seems to be the mantra.

Really?  Why's that?  Yes, if the government wants to borrow more money, then those NEW borrowings will be more expensive.  But the interest payments of currently outstanding debt is already locked.  If we don't borrow more as a country, we have no worries.  Problem solved.

And can someone out there explain to me how the credit rating of the US will affect me wanting to get a car loan or home loan?  Seriously, if someone can explain why this would affect consumer credit costs, I honestly want to hear it.  MY credit rating and loan demand determines the rate I pay, not the credit rating of the US.

The only way the government actions affect my loan rates is the artificially manipulated rates charged to banks by the Federal Reserve Bank.  The INDEPENDENT Federal Reserve loosens or tightens credit, NOT the Treasury Department.  They expand or contract the money supply as they see fit.  What the Treasury Department does is irrelevant.

If the federal government has to shut down, say, HUD, and gets out of the "Anyone who wants a home can get one" business, this will result in even MORE homes being available for sale, pushing prices and loan rates down, saving buyers money.  Supply and demand.

If the government stops subsidizing behavior, the market will set the proper price, usually lower.  In cases like ethanol/corn subsidies, the market would say, "Uhm, that ethanol crap is not as efficient as gasoline.  Without nanny subsidies, it is not cost-effective to run in my car.  No thanks."  The ethanol market would evaporate overnight.

And what would happen to the price of all that formerly subsidized corn?  It would drop like a rock.

Johnny cakes, anyone?!
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Now, if I were a bettin' man, if Barry doesn't get his way, I'd bet he'll instruct "independent" Bernanke and the Fed to tighten credit and raise rates.  Gotta punish them thar Tea Party bastards.  He'll run on the, "I Told You So" plank of the Democrat platform.
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ABC news and their affiliates are all running with teasers of, "X days until default". 

Lord, give me strength.  I'll say it again:  Default is a choice.  If King Barry decides to not pay the interest and principal payments, that's his CHOICE.  Same goes with Social Security, Medicare, etc.  Barry gets to decide how the pie is sliced.  If he wants to choose to not pay granny, or China and instead keeps the entire federal government intact - and all of those dues paying union workers - so be it.

Why isn't the press pointing this out?

Oh.  Never mind.


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Copyright 2011 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

Wednesday, July 27, 2011

MIssion Creep and Other Reasons To Hope It All Crashes

I swear, I think I saw Barry's lip quivering on Monday night as he was pleading with the nation to get behind his, "same ol', same ol'" form of government - keep growing governement regardless of the cost.

Apparently, there is some real concern in the government.  The SOBs are running TV commercials trying to sell the public on why they should exist.  Seriously.

I just watched a commercial for the EPA.  To be clear, this wasn't a commercial telling people not to eat arsnic or the evils of radon.  It was a commercial touting the value of the EPA.



Of course, they went to the tried-and-true approach of, "it's for the children".  Without the EPA, evil businessmen would be feeding your baby toxic waste.

Subtle.
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The EPA may be the poster child of why so many Americans are finally pushing back against this big, bloated growth in government.  I think most Americans could live with having the original EPA.  It is probably even Constitutional, in that it fits the original intent of the "general welfare" clauses.  It was doing something to help all Americans  - keeping our water, soil and air clean.

Who could object to that?

Look what they've become.  Coal is evil.  Oil is evil.  For God's Sake, carbon dioxide is evil.  Like every single government agency ever created, it is always looking to grow and gain more control.

If you go to the administrator's page [link], her A-Number-One top priority is Climate Change.   There's a shocker.

I think the racial pandering is what burns my ass the most.  On Sunday, the administrator had a pander-palooza with the racist NAACP.  She was making some comments [speech link] on the summer heat wave that has been hitting a big portion of the country -
On Friday, the vast majority of the country had air quality rated Good to Moderate. But some communities we were seeing air quality that was rated Unhealthy or Unhealthy for Sensitive Groups.
She acknowledges that the "vast majority of the country" had good, clean, healthy air. She spent one whole sentence with the good news, and the remainder of her speech on how blacks are being targeted - somehow - with dirty, unhealthy air.
The Unhealthy air quality was recorded in both Washington, D.C. and Baltimore. Washington is 55 percent African American, while Baltimore is 63 percent African American and has a median household income almost $13 thousand below the national average. In Richmond, VA the air was reported as unhealthy for sensitive groups, meaning that children, the elderly and other vulnerable groups were at a higher risk of health effects. Richmond is 51 percent African American. Their median household income there is also $13 thousand below the national average. The city of Cleveland – where the air was unhealthy for sensitive groups – is 50 percent African American and has 25 percent of its families living below the poverty level.
Funny how she didn't mentioned Oakland, California. Or neighboring Richmond, California. Or other predominantly black communitites located in the "vast majority" of the country that had great air quality during the summer heat wave. Why wasn't she pimping those communities?

She continues with her, "you're a victim" speech -
I know this issue is a focal point for the NAACP. Your recent report about coal plants and pollution found that 8 million people live within three miles of coal power plants. That helps explain why African Americans enter emergency rooms for asthma treatments at three-and-a-half times the average rate than whites do.
WTF?!? OK, 8 million people live near coal plants. Great. Since you're clearly traveling down Racist Road, how about you tell us what their ethnicity might be?

Obviously, that's not important. The Professional Propagandist knows she merely needs to present two facts in close proximity - in this case (1) the number of people living near coal plants and the fact that (2) blacks have more asthma - and the mouth-breathing public assumes a connection between the two of them.

Whites own most of the guns in America. Most young black males are killed by guns.

The soft-headed public assumes whites are the ones killing young blacks. Never mind that the actual facts show that most blacks are killed by blacks.  Inconvenient for the race baiters and government growers.
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After an hour or so of listening to the Professional Propagandists, the group will be sufficiently convinced that More Government Is Needed. It must be expanded to protect us from the evil Republican businesses that have somehow gotten the sun to shine more intensely on the black communities of America.

Welcome to Mission Creep.

That's how it begins.  One department administrator wants to expand the size of his or her department.  They do good works for the public, so how about we do MORE good works for MORE of the public?  Sure, the areas they expand in to may only be marginally related to their original mission statement, but hey, who really cares?  You can't put a price on good public works, right?

Then another administrator sees that his buddy in the department next door is growing and gaining more power, and he'd like a little of that for himself.  He expands his charter, and starts to spread out like an oily cancer as well.

You end up with a department like the USDA - that was chartered to make sure America's meat and vegetables were safe - that is now conducting tactical raids on dairies that dare to sell unpasteurized milk products to willing, knowledgeable buyers.

Side note:  How many of the salmonella outbreaks, mad cow outbreaks or botulism outbreaks we've seen in the news have come from USDA inspected farms and ranches?  100%  To put it another way, how many of the outbreaks originated at small, mom-and-pop, too-small-to-bother-with operations?  Zip, zero, nada.

Feel safer with all of that government "protection"?
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Government should regulate and inform, not operate and dictate.

I love the idea of the government requiring food processors to have to list the ingredients of their products.  It provides an uninformed public with what kinds of stuff are hidden in that Twinkie you want to eat.  Hostess can continue to make Twinkies, and you can now choose to eat it or not.

I even like the nutritional and calorie stuff.  I think it's great that cigarette companies must put the warning on their packs of cigarettes.  "Smoke this stuff and you're virtually guaranteed to shorten your life.  Have a nice day!"

It's when they operate a company or industry - or dictate behavior - that I push back.  I can't choose the kind of light bulb for my own house?  Really?!  You're going to tell bakeries the kind of fats they can use in their cream puffs? What?!  If I own a bar and everyone in there wants to smoke cigarettes, we've all broken the law if we choose to do so?  How about letting the non-smokers open their own business that prohibits smoking?  What business is it of the government to try and control this behavior?
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And that's the point.  It's the business of government to control.

The twisted logic goes something like this:  Well, if we let you smoke, you're more likely to come down with lung cancer.  If you come down with lung cancer, you're going to cost Obamacare/Medicare/Medicaid more than your "fair share", so we need to keep you from harming yourself, 'cause that harms us all.

"If we let you eat that fat..."

"If we let you ride that motorcycle without a helmet..."

"If we let you smoke that joint..."

"If we let you use that tanning booth..."

"If we let you eat that unpasteurized yogurt..."

"If we let you smoke that cigarette..."

"If we let you buy that gun..."

"If we let you plant that vegetable garden...[link]"
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The "collective you" is more important than the "individual you".  It's about government substituting its judgement for yours.

Like most Americans, that's not what I signed up for.  When I was a kid, I took all of that personal freedom, personal responsibility and liberty nonsense to heart.

Silly me.

So it leaves me with few options.  I know that government will never shrink of its own accord.  It's not natural for any entity to want to kill itself off.

When you've got over half of the population not paying any taxes but still reaping the benefits, how are you going to get them to vote against their best interests?  You just won't get enough of the population to vote to take a cut in pay/benefits.  It ain't gonna happen.  The recipients simply won't voluntarily downgrade their way of life.

So, it's gotta happen the hard way.  The involuntary way.

It could happen sooner if the handful of Republicans in the House stick to their beliefs and don't vote for a debt limit increase.  This will cause the Administration to make choices on how to spend the available tax dollars.  No way will everyone be happy with the choices.

It could happen later if the Republicans either cave in, or the next congress provides Obama or his successor with enough votes to get the debt limit raised at will.  We will eventually crash from debt overload, and we'll be back to the same choices of, "who gets the available cash"?

Accept The Challenge

Let the debt downgrade begin!

I don't know about you, but I have no desire to be dependent upon any government entity for my survival.  Food, health, housing - no thanks.

You've got to store and hide assets - the more you've got going into a depression, the more likely you'll have something when we emerge on the other side.  Equipment, precious metals, supplies, guns, ammo, tools.  Anything you'll need during tough times that also will have value to others.

Hiding your stuff from the prying eyes of your government and neighbors can be tough.  Cash in a bank account/IRA or PMs in a safe deposit box are as good as confiscated.  A public storage shed full of food or guns would probably be toast as well.  If you need to use these, use them judiciously.  Don't put all of your eggs in one basket.

Now, you can only store so much food, and stash so much equipment.  It will eventually be depleted if you're looking at your stores like a baby chick views the yolk sack.  You need to be able to provide for yourself for the long-term.  If you have skills that others find valuable, you can emerge from this mess quite well off.  Position yourself to produce more than you consume.

Forge tools from scrap metal.  Sew clothes.  Weld/braze/solder.  Brew/distill.  Can/preserve/smoke/pickle.  Repair stuff.  Create stuff.  Convert stuff.  Repurpose stuff.

Food is obviously a bigee.  If you have a bit of land, grow veggies.  Look into "secret gardens" planted in forests or public lands.  Learn to forage wild edibles.  Catch fish, shoot or trap birds and other small game.

If things get really ugly, I can very easily see farms and ranches being nationalized as we (effectively) did during our Great Depression, and as has happened in virtually every country in the world that has gone over the socialist edge.

Black market, unconventional, under the table skills and knowledge are what will separate those that survive a downturn and those that thrive during the downturn.


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Copyright 2011 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

Monday, July 25, 2011

Is This How It Begins?

Two Saturdays ago, when I got back from a gun class, my wife mentioned to me that a young black guy had been shot by San Francisco PD.  It was something about this kid not paying a bus fare, and the cops just shot him down.  He was unarmed and just gunned down in the street.

My first thought was, "This is going to blow up."  Police shootings have been getting a lot of press, and killing a young, black kid for not paying a bus fare was unconscionable.

Then some more information started coming out.  First, it seems that the kid wasn't unarmed.  The police said they were returning fire as the kid was running from them.  The problem was, there was no gun.

Oops, yes there was.  There was video of some guy picking up a gun at the scene, and reports that the police had recovered it.

Oops again: the video of the guy picking up "the gun" doesn't look much like a gun.  It could just be the angle of the grainy video, I don't know.  And the gun is still officially unrecovered.

Now, the SFPD is saying their officers didn't even kill the guy.  He was hit with one bullet in the leg (sounds like it was a through-and-through shot) and with another in the back of the neck that then entered his brain.  The fatal wound was caused by a .380 caliber bullet.  The SFPD is VERY carefully pointing out that it was not fired by a department issued gun, as those are all .40 cal.  I've yet to hear anyone ask if any of the pursuing officers had a personal back-up gun chambered in .380....

The police investigation is saying that the fatal shot was self-inflicted.  From the back of the neck?

Now,  the kid wasn't some innocent fare skipper.  As it turns out, he had recently been paroled from a Washington state prison.  For child rape and child prostitution.  He was also wanted for questioning in the murder of a 19 year old pregnant woman.
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So, on one hand, the SFPD has either rid the world of a maggot that would have likely continued in his evil ways - or he did it to himself.

On the other hand, this is very disturbing to me.  The idea of someone committing suicide by shooting themselves in the neck just doesn't pass the smell test.  Who else but the SFPD would have shot him?

And where's the gun?  The object that was picked up was done so right in front of an SFPD officer (go to Youtube and search "Bayview shooting" to see all the different "takes" on what happened).
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Now for the point of this post - I think this is the kind of event that can very easily set things spinning out of control.  Ye olde Civil Unrest.

A few days after the shooting, there was a large demonstration that resulted in over 40 arrests.  The Chief of police then held a meeting with people from the neighborhood, and he got shouted down, and ended up walking out.

People are pissed.  And anxious.

If you listen to a number of the Youtube videos, at least in this one predominantly-black, poor, crime-riddled SF neighborhood, there is a LOT of anger towards the police, the media, Jews and whites.  Lots of anger.

Right or wrong, it's there.
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Tinfoil hat or just connecting the dots?  I was listening to the radio coming home late last week, and the subject was the recent crack down on illegal aliens by the administration.   Earlier in the week, they had done a number of raids and arrested a bunch of illegals.

A black guy called in and was saying this was a bad idea.  The host was saying that the jobs taken by the illegals were the kinds of jobs that were historically taken by teenagers, and black teenagers have a horrible unemployment rate.

The black guy said he didn't care.  He said that right now, we didn't need a NEW class of unemployed (the illegals) who had an additional problem in that they wouldn't have the money to get back home.  He said he believed you'd just end up with a bunch of very pissed off, very poor people that would erupt into violence.

Hmm, sound familiar?
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Both the caller and the show host were discussing how surprised they were that THIS administration was taking THIS action at THIS time.

I must admit, I was surprised as well.

Is it just a coincidence that the administration is taking actions that could lead to violence, right at a time when they are getting their butts kicked at the budget table, their popularity numbers are in the tank, and the economy is in a shambles?  If the angry blacks and the angry Hispanics erupt at the same time (the two groups have no love lost for each other) does this give the administration cause for some sort of martial law?  Or is that getting too tin-foily?
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I've mentioned in the recent past how my gun classes are all getting sold out, and how they are trending towards husband/wife or whole families taking the class.  Perhaps this has got me being a bit more sensitive to this subject.

Also, there have been a rash of robberies at coin shops, banks, grocery stores and other businesses.  One of the coin shops was our primary competitor across town.  Their front door was kicked in at 5am and the bad guys grabbed over $2000 in silver.

I was shocked to learn that every piece of their inventory isn't put in a safe each night, and that they apparently don't have a camera system.  We empty every display case each night, and leave them lit so the bad guys can see that there's nothing to take.

Accept The Challenge

Keep on your toes.  We've got politicians on both sides of the aisle screaming at each other in public over the public debt deal.  Tensions are high.

The administration sends their stooges on TV to tell everyone how great things are, and how we've "turned the corner," yet they trip over their tongues when asked for specifics.  We're getting weary of their lies.

If this debt thing isn't extended, and cuts start happening to social programs, I fear we're going to have spontaneous violent outbursts, followed by staged large-scale demonstrations by unions, community organizations and similar socialist organizations.

If this happens, figure banks, police stations, state/federal government buildings and similar places to be the early targets.  If the unrest is extended, any business with anything of value is a target - grocery stores, Big Box stores, jewelry/coin shops, gun shops, liquor stores, etc.

You know the drill:  Have some cash, have some guns and ammo, have some food and water.  Be prepared to be mobile.  If a riot sweeps thru your area, be ready to move at a moment's notice.  Can you live out of your car or truck for a few days while things blow over?  If your only plan is to "bug in," that's not much of a plan.

Flexibility and adaptability are the keys to survival, and that's the primary goal, right?
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Copyright 2011 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