The States

As everyone cries havoc in ever mounting spirals of hysteria, the various states are crying the loudest, and rightfully so.  As the D.C. Gang grows more conspicuous in their bogus, frenzied, espousal of causes to bail out and promote with paper money, the states seem to have been left out.  In California, for lack of one Republican vote, as of Wednesday, the Governor’s plans are athwart.  California needs $42 billion to balance its budget, New York needs $18 billion, and Kansas can’t meet its tax refunds and barely made payroll last week.  Jobs are disappearing like mythical money in Robert Stanford’s high interest CD’s, and a philosophy of the preposterous reigns in D.C.  GM needs $30 billion and Chrysler somewhat less, while non union auto manufacturers are OK.  Are unions pure socialism?  Forcing employment of the worthless, and having everyone ’equal?’  Obama gives speeches, and the presses run night and day, while the Speaker of the House Pelosi’s plane gobbles up $60,000 worth of fuel for her round trips home.  She became irritated at her former cheap to run, private biz jet’s having to stop for re-fueling half way home, so she now uses a full size jet which can make the trip from the denizens of D.C. to her home of fruits and nuts in California.  Why shouldn’t she fly commercial?  Economy in D.C.?  Surely, when pigs fly.

How sad that the states as well as you and I can’t print our way out of bill payments, when due, like Uncle Sam can and does. The Gang has given $400 billion to irresponsible banks, and not a penny to states who have certainly not proven irresponsible. As more and more people realize that we’re in a severe depression, which will probably make the ’great depression’ seem like child’s play, more and more are realizing that gold and silver cannot go to zero, are not dependent on the fakery of a government statistic, or other entity.  Gold and silver need no backing, are valuable, tangible, compact, beautiful, historic money, with which to preserve and store our surplus assets.

Speaking of gold, here is today’s quote from ATLAS SHRUGGED, which everyone should read.  From page 385: “Destroyers seize gold and leave to its owners a counterfeit pile of paper.  Gold is an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who produce it.  Paper is a check drawn by legal looters upon an account which is not theirs; upon the virtue of the victims.  Watch for the day when it bounces, marked ’account overdrawn.’

The sensationally incompetent Congress of the United States, both Republicans and Democrats, are now beginning to further increase their habit of legislating catastrophe, by considering nationalizing the banks.  After all, whatever they touch turns into muck, why not have a go at taking over the banks?  Attention Karl Marx:  Is your transponder on?  We’re flying full force towards socialism, and wouldn’t want to over fly your sterling model.  Have we as yet disintegrated into irretrievable ruin?  If not, keep working at it D.C. Gang, and we might soon achieve it.

The rush to gold and silver, has partially overcome the Indian’s reluctance it seems, and the demand for bullion has kept the mints working 24/7.  Still not caught up, so there is a delay, but at least prices can be locked in at current levels.  Most who go to our new web site, are not aware that if you go down to the bottom of the web site, you will see three columns regarding numismatics, confiscation, and barter, which is good and instructive reading, and will answer a lot of questions.  We still have no notice from the US Mint at West Point New York, as to when fractional ounce Gold Eagles or Buffalos are going to be made again.  When we hear, the web site will show it.  Why are Krugerrands more expensive than they used to be?  The Krugerrands we used to have, were all dated in the 70’s and 80’s and these are long gone.  We have to import new ones from South Africa, and pay to ship them and get them through Customs, which makes them as expensive as Gold Eagles and Maple Leafs.  Why are gold coins $53 over spot, when they used to be a lot less?  I don’t know, unless it is because the mints are making more profit, the cost of running three shifts is excessive, new machinery must be paid for, transportation and distribution costs have increased, or all of the above maybe.  We still do not mark up anything, and what we charge you is exactly what we pay our distributor.

When I was a kid and even teenager, I had never seen a hundred dollar bill, or for that matter a fifty dollar bill.  Now, they’re as common as dirt, and soon may be worth close to the same, but don’t think that the dollar will disappear, and we will use the so called “Amero.”  The ’amero’ coin, as far as I am concerned, is the result of some computer artist’s talent, and is as fake as a bankroll of three dollar bills.  The dollar, even though it is losing its luster and value, is still the world’s reserve currency.  To think that substituting the world’s reserve currency with a fictitious ’amero,’ is absurd.  There’s a lot of garbage on the internet!

For those of you who have thought of placing physical gold or silver in your 401 or IRA, here’s a phone number to call to set up an account.  Sterling Trust is an IRS approved company, and their phone number is 1-800-955-3434.  Before doing that, it might be sensible to take the dollars out of your 401 or IRA, pay the taxes, and take the gold and silver home with you, rather than paying taxes on it when the prices are much, much higher.  Just think about it, is all I ask, before you open an account with Sterling Trust.  Have a safe deposit box?   If so, be sure that not only your name is on it, but your kids, wife, or family.  They don’t even have to know about it, but if you die or get into it with the IRS, the contents will be the property of all whose names are on it, not just yours, and not taxable nor seizeable.  Do not mention your metals holdings in your will.  Just be sure that your descendents know you have it, and where it is.  If gold and silver are mentioned in your will, the lawyers and tax collectors will have a ball probating and collecting taxes on it.  Gold and silver have no serial numbers and no one knows you own it..

Where to store it?  Up to you, but store it in a place where no one would think of looking, or buy a safe.  I once had a client who used Old Spice stick deodorant, and when the tube was empty, he said that it would hold 40 Krugerrands, and no one would think of looking in his medicine cabinet.  Suit yourself.  I have a safe, lots of guns, and an elaborate alarm system with 24 hour cameras.  Anyone trying to rob me will simply die, that’s all.  I’ve never shot anyone, but I have passed the sheriff’s test, and wouldn’t hesitate to shoot to kill.  Colorado has a ’make my day’ law, and killing rather than wounding, saves a lot of court time and expense.