Charting Economic Obamageddon

Feel dizzy from swirling in the economic toilet?  Don't trust the MSM telling you how much better the economy is with The Won in charge?

Check out 13 charts of Economic Obamageddon, here.

Must Read: The Corruption of America

The following link is a long, sometimes unpleasant, but essential read about where we are in America:

Porter Stansberry:  The Corruption of America.

The link takes you to about a third of the way down, so scroll back up to the beginning.



Hat tip:  Zero Hedge.

Thoughts On Gold Crossing $1,800.00/Ounce

Gold just crossed the $1,800.00 line a few minutes ago.  Not just peeked over the threshold, but crossed over looking to stay.

It occurs to me that gold's appreciation of $140.00 an ounce since Sunday afternoon is a harbinger we should be paying serious attention to, more so than the wild swings (mostly down) in the equities markets.

There must be a lot of gold buyers in order to drive the price up that high.  A lot of people who must also believe there is a substantial chance that either the price will stay that high, or that conventional currencies will soon have such diminished value that gold is worth the price. 

Does that mean that an economic collapse is imminent?  I am hesitant to make such a prediction, but I don't think the underlying reasons for gold's increase paint a rosy picture.

Welcome to Obambwe, and Get Ready for the Barackalypse!

In Obambwe, the Zimbabwe of the West, does the Barackalypse precede Obamageddon or is it the other way around?

I did not get a lot of work done today, as I was watching the stock market, gold, and the prognosticators.  I was tickled to see the Dow down 634 points by the end of the day and gold up over $1,700.00 all day.  I own no gold and have nothing invested in the stock market, so I have no direct interest in what appears to be the consequences of government malfeasance.

I actually take no joy in this economic meltdown, but I am glad it is finally getting in gear.  I am tired of watching the slow decline and the ruinous actions and inactions of the morons we have collectively elected to govern.  When those morons have finished running our economy over the cliff, we can achieve a "reset" and get back to business.  But not before getting out the pitchforks, tar, and feathers.

I figure that I can be a little more sanguine about the whole mess because I have been a prepper for over fifteen years.  While the preps are nowhere near complete, I feel a lot better than I would if I had only three days worth of food, no money in the bank, and no defenses. 

Although it is difficult to tell what will happen over the coming months and years, and many predictions have already been made (including by me) and not come to pass, it does not appear that much good is going to come out of the country's present financial predicament.  At least not until those who have caused this mess are called to account for their actions.  I really believe that this may be the last opportunity to make preparations before financial circumstances become dire, including devalued currency, massive inflation, increased unemployment, and possible shortages.  I am and have been making lists of food and tangibles that will be necessary in the future and/or will maintain their value. 

Additionally, I have been taking note of the increasing social unrest and violence in the country.  I have decided that I will carry concealed wherever I lawfully can, and am checking into more methods of concealed carry.  This includes new holsters, magazine carriers, and vehicle lockboxes.  I am determined that I will not make a good victim.

Other than that, I have just been trying to digest the all the news and information.  There was a whole lot of coverage on the negotiations to raise the debt limit, which didn't mean an damn thing in the end.  The result was just business as usual:  Increased spending and no actual cuts.  One step closer to the abyss.

Keep your head down, your preps dry, and your pitchfork handy.

One Practical Measure of the Cost of Obama's MENA Follies

It has been widely reported that Obama's Kinetic Military Action (his words) in Libya has thus far cost the U.S. taxpayers $600,000,000.00 and that the ongoing costs are projected at $100,000,000.00 per week, or $430,000,000.00 per month.

Since the government simply prints the money it does not have, and it does not have any, most taxpayers are not feeling the pinch of Obama's not-a-war.

Of course, Libya is but one of the follies in the Middle East/North Africa which are going on under the incompetent watch of our Dear Leader.  Since February 24, 2011, when Libya was in conflict and Egypt and Tunisia had already expelled their dictators, the price of gasoline in my area has increased from $3.02 a gallon to $3.64 a gallon.

Doing a bit of simple math, let's assume that there are, conservatively, about 75,000,000 regular automobile drivers in this country of 310,000,000 people.  Assuming that each driver uses ten gallons of gasoline a week, on average, each driver is paying an additional $6.20 per week for gasoline.  With 4.3 weeks in the average month, that would amount to an additional $26.66 for gasoline each month. 

While this does not seem like a substantial additional sum to be paying for gasoline, multiply that number by the 75,000,000 drivers.  That is an additional $1,999,500,000.00 spent on gasoline each month.

Since we import about 60% of the oil used in the U.S., it seems fair to assume that 60% of the refined gasoline comes from imported oil.  If gasoline prices have increased $0.62 per gallon across the U.S. since February 24, 2011, we will be transferring an additional $1,199,700,000.00 of our wealth out of the country each month. 

The $600,000,000.00 in funny money frittered by the Obama administration pales in comparison with the real cost to motorists of Obama's MENA follies.

The Slow Decline Starts Spiralling....and Thoughts on What to Do

Last Thursday I filled up the gas tank at $3.02 a gallon.  Yesterday morning I noticed that gas was $3.13 a gallon.  I had to take a trip out to the Lincoln County Courthouse yesterday.  Gas was $3.32 a gallon at one station I passed in Lincoln County.  When I got back to River City, the place I usually stop at was $3.29 a gallon.  Quite an increase in a short period of time.  Despite the MENA turmoil, there is a gas glut in this country.  I fear what will happen when the supply glut is gone.

Gold is hovering over $1,430 an ounce.  Silver is over $34 an ounce.   The copper and nickel in our five-cent coins is worth more than the face value by over two cents.  It appears that a lot of the recent increase in metals prices is related to global political instability, particularly in the MENA region.  This is, of course, on top of the increase due to weakening of fiat currencies.  I don't expect either the political instability or weakening of fiat currencies to abate anytime soon.

The stock market looks like it wants to dive again, but is being propped up by who-knows-what.  I don't think the stock market will be indicative of anything until it crashes again and confirms an all-out calamity.

I have seen more home foreclosures cross my desk in the last two years than I had seen in all fifteen years prior to 2009.  Combined.  Despite the promise of fraudulent foreclosures threatening to take down the big banks, there is little effect here where most foreclosures are non-judicial.  The lender takes back the property by buying it at the trustee's sale.  The former homeowner just walks away.

Surprisingly, food is still relatively cheap.  I don't expect this to last.  I have been noticing price increases of ten to twenty percent on a lot of items over the past few months.  Usually the name brands.  I think that food prices will markedly increase in the very near future as the price of food commodities is added to production costs and passed along to the consumer.  I think that food commodity prices will continue to increase due to the increase in price of oil-based fertilizers and production methods and also due to decreased global production.  A double-whammy we will soon be seeing in grocery store prices.

Unrest is increasing in our own country and there are few leaders who are capable of recognizing and dealing with the threat.  The entitlement class is at war with the middle and upper classes.  Welfarites, professional disabled, pensioners, public servants, and the union thugocracy are all gunning for the last Bernankedollars in the trough.  Will this lead to civil war?  Who knows?  We are staring straight into the abyss of a financial collapse and so far the only leaders who see the threat are Governors Christie, Daniels, Kasich, Scott, and Walker.  On the national level we are toast.  The measure to keep the fedgov funded for two more weeks tells it all:  Political willpower only exists to cut $4,000,000,000, or $104,000,000,000 annualized.  That is not nearly enough when we are in the hole for $1,700,000,000,000 this year alone.

With the country, if not the world, spiralling down the commode, here are my thoughts on what to do right now.

First, as Ol' Remus frequently tells us:  Stay away from crowds.  No matter how strongly one feels about current circumstances or the need to confront the union/communist/fascist thugocracy, it just is not worth it.  This house of cards is coming down like a ton of bricks.  Best not to be under it.

Second, food is relatively cheap, but won't be for long.  Stock up.  Buy things you will eat based on your current diet, but only things that will keep for at least a year.  At this point I don't think true LTS (long term storage) foods are necessary.  If inflation comes on as strong as it appears, we will be eating out of our stocks before too much longer.  However, there is probably enough time to stock up on "loss leaders" over the next month or two so that paying regular price isn't necessary.

Third, do you have some water stored just in case of a power outage or in case things get so bad you can't pay your water bill?  Have the capability to store at at least five gallons per person in your household plus the ability to produce more (filtration, rain catchment, etc.).  At least five gallons at any time.  A person needs to consume at least a gallon a day just to stay alive and dirty.

Fourth, can you keep your house warm?  Again, think power outage or inability to pay the utilities.  For the short term, something like a kerosene heater may work for you.  Longer term, a wood-stove, manual pellet stove, or waste oil burner is a better bet.  The best method is one for which you have a ready and steady supply of fuel.

Fifth, can you go anywhere.  Do you have a means of transportation you can count on and sufficient fuel?  Most of us have at least one form of transportation and likely more.  Besides keeping the gas tank no less than half full, it is a good idea to store at least another full tank's worth of stabilized fuel.  Fuel may become unavailable all of a sudden or the price may be exorbitant or you may just need the extra fuel at a time when putting food on the table came first.

Sixth, but not last for preparedness, can you defend what you have?  Many firearms are still affordable and as of this writing ammunition is plentiful and not too expensive.  I believe that every able-bodied person in the household should have a personal firearm and the training to use it.  Even if you have to buy a Hi-Point pistol and Mosin-Nagant rifle for each person in your household, you would be out only about $400.00 per person with a reasonable amount of ammunition.

The foregoing are my thoughts on what to do if a person stays in place.  I don't think many of us are actually going to bug out to some other location or otherwise abandon our homes during the coming crisis.  I expect that many will continue to go to work or continue to look for work, requiring us to have a home to start out from and return to each day.   Additionally, many of us have children that we take to school five days a week (except in Wisconsin).

What I am expecting in the near future is marked inflation in the prices of food, energy, and other necessities.  I also expect a huge increase in government taxes and fees.  The powers that be simply will not cut spending in any significant amount and will be looking for additional revenue from any and all sources.  For example, just this year in River City I have watched the city utilities (water, sewer, garbage) increase in price and the city tack on a $20.00 per vehicle licensing fee in addition to state fees.

It is foreseeable that we will find the costs of living increasing while our wages do not, with the result that some current necessities become tomorrow's luxuries.  It may become necessary to forego electricity in favor of food, and paying the mortgage instead of having city water and garbage pickup.  Walking instead of driving.  Circumstances could become that dire.

Better to prepare for such adjustments than to be forced to make the adjustments. Or worse, to become a ward of, and be at the mercy of, the state.

Random Thoughts

Inflation:  It's definitely here as far as food prices go.  Two items I recently purchased have radically increased in price were four-packs of pudding and sugar.  Those pudding packs were $0.99 within recent memory, now they are $1.49 for the store brand.  And sugar was recently about $2.99 for a five pound bag of name brand.  Now it is $3.09 for a four pound bag.  That's right, the standard size sugar bag is only 80% of what it was and it costs more.  If it weren't for my daughter wanting pudding now and me having two teaspoons of sugar in my coffee, I would do without both.

Deflation:  Some ammo prices are definitely getting more reasonable.  I was in the White Elephant (sporting goods and toy store in Spokane) the other day, and noticed that the 525 packs of .22 ammo, both Federal and CCI, were $14.99.  Blazer Brass 9mm was $10.99 and .45acp was $18.99.  Compares very favorably with what I have been seeing online.  I found a few very good deals on 9mm and .380acp online and had to stock up.  Sportsmans Guide has Federal 9BP 115 gr JHP's for $17.47 a box of 50 ($16.60 if you are a club member like I am, and an additional 2.5% off if you have the Sportsman's Guide Visa).  SG also has free shipping right now on $99+ orders.  Graf & Sons is another place I have been shopping lately.  They recently had CCI Blazer 9mm 115 FMJ for $7.99 a box, and Blazer .380 for $10.99 a box.  Right now they are also running free shipping on $50+ orders, including ammo.  I really like the Blazer at this price because I don't feel bad about not saving my brass at the range (besides the fact that the range discourages picking up one's own brass). 

Gun Show Last Weekend:   Went to this on Sunday looking for more ammo cans.  The vendor I have bought from in the past was there, but sold out of .50's.  I did see a few good deals, such as an old Stevens Favorite .22 for $75.00, but I passed on it because the extractor looked to be worn out.  There were some good deals on ammo there, but a few "scalpers" as well.  A few tables had the same boxes of bulk .22 ammo as the White Elephant, but were being hawked for $25.00.  I have noticed that there is no shortage of opportunists reselling ammo or selling used guns for more than I could get them in a retail store.

Rifle Cleaning Chores:  I had bought a Russian Mosin-Nagant rifle while Bud's Gun Shop had them for a good price.  Unlike the SKS's and Romanian AK's I had bought in the past, this Mosin had a very dark and dirty bore.  The crown looked good, as did the chamber and what I could see of the rifling.  I cleaned out the cosmoline with WD-40 (it just melts the stuff away), then scrubbed several times with Hoppe's No. 9.  Not much luck with that, so I switched to Bore Scrubber.  A little more gunk removed and more blue-gray stuff on the patches, but still a lot of crud in the bore.  After doing a little internet searching, I came across a recommendation for Butch's Bore Shine.  It was $10.99 locally for an 8oz bottle, which is about middle-of-the-road price for bore cleaner.  I soaked a patch, ran it through, and waited about ten minutes.  The next patch took out more crud than all of my previous scrubbing combined.  I have given the bore two scrubbings with Butch's so far, and while the bore is still dark I can at least clearly see the lands and grooves.  I figure I have about two more scrubbings to go.  I'm  not looking for a bright bore, just cleanly defined lands and grooves.

Cheap Shotgun Update:  The Ultra 87 shotgun I ordered from Cheaper Than Dirt arrived and I picked it up today from my local FFL dealer.   I figure that others must have also considered $145 for  a defensive 12 gauge to be a good buy, because CTD has sold out.  I will report a little later on about fit and finish, but it may be a while before I get to go try it out at a friend's property out of town.

Preps:  Despite the reported coming price increases in grains, I found 20lb bags of white rice for $6.72 at Winco Foods the other day.  Wheat berries went up a bit to $0.47 a pound, but popcorn went down to $0.58 a pound.   Bought some of all three to add to the preps, as I cannot help but think that some radical food inflation is just around the corner.

Well, I suppose that is enough for now.  Gotta get back to my day job.

Get Ready to Ride the QE2

And I'm not referring to the luxury liner.  A better analogy would be a garbage scow.

Helicopter Ben Bernanke has officially announced Quantitative Easing, Part 2, as of yesterday.  I noticed that stocks are up this morning.  No reason not to expect that with a bunch of free money being thrown out willy-nilly.  The tomorrow of paying the bill will never come, they think.  Just pump that market up, up, and away.

Looks like not everyone is buying it.  The Dow is up 1.92% and S&P is up 1.91% as I write this.  Nice for those hypertraders still in the market and the insiders trying to pump up prices before they take their money and run.  And run they will.

The real story is in the price of gold and silver.  Gold is up over 6% from yesterday's low and silver is up a similar amount from yesterday's low.  That spells confidence.

Looks like I had better use my federal reserve notes to buy more toilet paper or else I will have to use federal reserve notes when I have to take a number QE2.

On another note, a tangibles acquiring opportunity is coming up this weekend at the Spokane Gun Show, which runs from Friday to Sunday at the Spokane Interstate Fairgrounds.  At the last one I picked up a handful of .50 ammo cans for $5.00 each.  Very little rust and like-new (if not new) seals.  If that vendor is at the show, I will buy a dozen this time.

Keep preppin', 'cause this show ain't over.

Random Thoughts

Juan Williams.  I've always liked Juan because he added an air of rationality and dignity to the liberal side.  Something that Alan Colmes always strived for but never could attain.  I repeatedly disagreed with Juan's positions, but he was the type you could disagree with at the same time you had a beer with him.  Very, very rare among liberals.  Juan found out what happens when you dance with the devils:  you get burned.  You associate with irrational bigots, and eventually you are associated with them.  The irony is that the bigots were calling Juan a bigot.  Of course, this close to the election, the shrill, closed-minded, hysterical, emotional, illogical "progressive" left is exposed for what it is at a time less than beneficial for their cause.  Thank you, Juan, and good luck at your new/old job at Fox. 

Patty Murray.  My tirade against Washington's Asshat Extraordinaire Senator Patty Murray might be getting a little old, but I will not relent until that ignorant, marxist twit is gone.  Latest Dino Rossi ad reminded me of something incredibly relevant, more relevant that Patty Moron's belief that abundant abortions are essential to the functioning of society.  Dino's latest ad has audio of Patty Murray claiming that she not only read the Obamacare bill, but that she helped write it.  Go to that link. Should we all presume that Asshat Patty also read and helped write the $800,000,000,000.00 Porkulus bill that created no jobs?  I think it is safe to give her credit for that.   Rossi is within range of taking out this wart on America's ass, but Murray has the illegal aliens out in force to scare up votes (the dead people move too slow, the imprisoned have other commitments, and the insane just won't follow directions.).

Preps.  I had been looking for a rifle with a longer range than 7.62x39 and 5.56x45 are capable of.  Problem is, I did not want to spend a lot of money, wanted something simple, wanted something with iron sights, and wanted something where ammo was currently plentiful and cheap.  After checking around a bit I finally settled on the Mosin-Nagant.  I bought a specimen in excellent refinished condition for under $100.00 (I know that I missed the boat from when even Big 5 was selling them for $69.00.  I will pay more attention to surplus rifles in the future.)  I bought a spam can of 440 rounds for about $85.00, and will probably buy another mosin and a few cans of ammo before the end of the year if the economy holds up (self-employment can suck sometimes).  I got an added bonus when I went to pick up my mosin.  The store owner asked me if I wanted to buy an SKS.  I asked how much.  He said $150.00.  I was interested, and ended up walking out with a beautifully maintained Norinco SKS, missing only the bayonet and cleaning rod.

Other News.  Somthing Glenn Beck said the other night caught my attention.  The national debt ceiling, which was raised by over $1,000,000,000,000.00 by democrats to something like $14,200,000,000,000.00, will have to be raised again sometime in February or March of 2011.  This was purposefully set up by democrats.  The dilemma for Republicans, if they control congress, will be to add further sanction to the willy-nilly printing of money to cover the national debt and appear to have no principles, or to adhere to principles and refuse to raise the debt ceiling which might have the effect of causing panic/collapse in the markets and pandemonium in the streets.  Interesting.  Could that be the galvanizing event?  We'll have to see.

Unemployment Steady at 9.6%, and A Bet

On my way to work this morning the news announced that unemployment for September 2010 held steady at 9.6%.  Of course it did.  No administration whose party controls the white house and congress would admit to an increase less than a month before a national election.  If unemployment went down, you can be sure that the Obamanation himself would be trumpeting it from the rooftops.  As it is, the mainstream/lamestream media had to make sure that I, registered voter, got the message.  The news item opened with the announcement that unemployment held at 9.6% and ended with the prominent announcement that unemployment had held steady at 9.6%.

I am willing to bet $100.00* that within a week after the election on November 2, 2010 that the unemployment figures will be revised upward.

*Terms:  If I win, I get paid in U.S. dollars.  If I lose, I will pay in Zimbabwe dollars.  If the winner does not have change for a $1,000,000,000,000.00 Zimbabwe bill, I reserve the right to pay in monopoly money.  If Democrats retain control of both houses of congress, they will all have the same value.

To Washington voters:  If you like high unemployment, increased taxes, increased home foreclosures, strangulation of small businesses, favoritism for public employee unions, citizen disarmament, and a host of other poxes on this great country, please remember to vote for Patty Murray on November 2.

Calm Before the Storm?

Things seem to be too quiet out in the world right now, given what is going on. Could this period in time be the calm before the storm?

War between Israel and Iran/Syria/Hezbollah-Lebanon/Turkey has not erupted over the Bushehr nuclear plant in Iran, despite predictions that Israel's window of opportunity closed on August 21. The Obama administration has supposedly assured Israel that Iran would need 12 months to actually fuel and arm a nuke, but who actually believes anything that comes out of the Obama administration? All parties to this in the middle east are still preparing for the possibility of war. The only wild card in my mind is what our apostate president does or does not do. The announcement that peace talks between Israel and the Palestinians are imminent is nothing but a diversion.

The Fed has committed to another round of quantitative easing, or monetization of federal debt. That the Fed continues to play its last weapon against economic collapse tells me that they are only buying time until the collapse. They know it is coming, we know it is coming, they are only buying enough time for their friends on Wall Street to take their money and head for the exits.

The DJIA, Nasdaq, and S&P 500 have essentially been flat all summer long. The close today is right about where it was on June 10. Sure, there have been minor ups and downs, but there is not any real movement. Not that there would be "real" movement anyways, as I have read that the stock market is pretty much driven by high frequency trading at big investment banks and that individual investors and a lot of institutional investors have fled the market. And not that the stock market is a reliable indicator of the economy in general. It might be when it finally takes the big dump, but that will be when the big boys are taking their money and checking their passports, which will be too late for any preparedness measures.

Unemployment continues to be bad news. I read that big business is essentially refusing to add employees until consumers start spending again. In a nutshell, there is nothing left to spend. Small businesses are afraid to hire, even if they could, due to uncertainty over Obamacare provisions and uncertainty in the tax code. The "Bush tax cuts" are likely to expire and a tax-hungry collectivist/redistributionist central government is hungrily eyeing the only remaining productive consitituency without representation in the White House: small business owners. No small business owner in his right mind would add to the payroll now. Looks like 10%+ official unemployment may be with us for quite a while.

Food shortages are rumored to be on the horizon. The Russians will reportedly not have sufficient harvest to feed their people. The Ugandan wheat rust has not been reported on lately, but at last report there was no known immune wheat strain and the fungus was on the move. The U.S. has no strategic wheat reserve anymore. There have also been rumors of reduced wheat harvests in parts of the U.S. and South America, and of coming rice shortages in Asia. Add to this the unknown effects of the chemicals used in the GoM oil spill upon crops in the gulf states, and the natural and government-imposed droughts in California.

There are already reports of food inflation. Jim Rawles has added a new feature on SurvivalBlog to monitor inflation, and the anectdotal reports indicate a rise in food prices. Could be inflation, could be increasing scarcity, same effect to the consumer. GrandPappy, at grandpappy.info, has kept track of inflation on food preps since early 2008, based on WalMart prices. He reports on a month-to-month basis.

Diversions are everywhere. The Obamas are on vacation number six. There may still be oil in the waters of the Gulf of Mexico. Gay marriage will be legal again in California. Muslims plan to build a mosque near Ground Zero. Charlie Rangel and Maxine Waters are crooks. Nancy Pelosi wants to investigate us. Brad Pitt, Sean Penn, and any number of celebrities have diarrhea of the mouth and constipation of the brain. Two of these are worth paying attention to, but should not distract us from our preparations.

I don't know if the end is near, a few months away, or years away. I don't even know if "the end" as in TEOTWAWKI will result in a Mad Max existence or just a permanently reduced standard of living. Will there be revolution or continued subservience to the central government? Don't know. M.D. Creekmore has a great debate going on regarding the meaning of TEOTWAWKI. The comments are closed, but run the gamut and are well worth reading for what others are thinking.

Despite all the signs of impending doom, there is a strange calm that pervades. If my father or grandfather were still alive, I would ask them how it felt in late summer 1939, or around Thanksgiving in 1941. Did they feel then as I do now? I wish I knew.

Why Kalifornia is in the Crapper and Won't Be Coming Out

The state of Kalifornia is home to the Silicon Valley, perhaps the largest concentration of technological engineering knowledge in the U.S. Kalifornia has about one-tenth of the U.S. population and a state budget larger than the budget of many countries. Kalifornia should be on the leading edge of effective and efficient government.

Kalifornia, however, cannot reprogram the payroll computers before the year 2012 to follow a simple directive: reduce the pay of state workers to federal minimum wagee as ordered by Governator Ahnold Schwarzenegger and upheld by Kalifornia's 3rd Circuit Court of Appeals.

The reasons for the inability to reduce the pay of state workers, as given by Kalifornia politicians and bureaucrats, are legion:
--the payroll system is 60 years old and was last updated in 1970, according to Hallye Jordan, spokesperson for the Kalifornia state controller's office
--the 21st Century Project to update payroll computer techology is inexplicably behind schedule despite having been conceived in the 1990's
--the original contractor hired to fix the problems was fired because it went bankrupt (too bad Kalifornia voters don't do the same to their government), according to John Harrigan, former division chief of Kalifornia payroll services
--employees with expertise in the various programming languages used in the payroll programs keep retiring, according to Harrigan
--the legislature would have to pass a bill to modify the computer system or to collect more data, according to the Kalifornia Department of Justice, despite the legislature having approved just such a thing in the 21st Century Project in 2005

Of course, none of the politicians nor bureaucrats will address the two real reasons that Kalifornia cannot adjust its payroll to comply with the Governator's order, much less pass a budget that keeps Kalifornia out of bankruptcy and/or begging at the Obamination's door:
1) The Kalifornia government is completely controlled by Democrats, with the exception of the RINO governator.
2) The Kalifornia Democrats are completely under the control of the Kalifornia state employees unions.
If the real reasons given above do not make sense to you, please immediately move to Kalifornia and commence building a fence around the state to prevent like-minded Kalifornians from exiting Kalifornia. This would also serve as an effective border fence.

As goes Kalifornia, soon goes the rest of the country.

Remember in November.

More Thoughts on Gold

Disclosure: I don't actually own any gold. Nothing to steal here. I'm a tangibles guy. Can't eat gold, but it is useful to gauge the extent and timing of the financial collapse, which looks to be worldwide in scope.

First up, read this article about gold ownership. Jeff Clark discusses why gold has not moved higher. Good arguments, but we preppers all know that the fat Greek lady hasn't sung, the Eurocommies are fleeing to the dollar, and that gold is underinvested. The interesting point is the degree of underinvestment: In one survey of money managers, 76% admitted owning no gold. Only 1% of global financial investment is in gold.

Next, read this article. If the implications of what Stewart Dougherty is saying does not make you put the Kitco Gold Chart on your reading list, I think you need to read the article again. Mr. Dougherty essentially discloses how to tell when Big Money is heading for the exits, and how and when it will happen. That is the panic, SHTF, TEOTWAWKI moment. When the Banksters take their ball and go home, it is over.

In reading the usual gold bug investment articles, it is easy to get caught up in the fervor that gold is going to soar to $2,000.00 or $3,000.00 or $5,000.00 per ounce. Some may think that investing in gold can increase one's wealth, because each ounce of gold is going to be worth so many more dollars as the fiat currency-denominated price keeps going up. It only holds true as long as the world believes that the dollar (or other fiat currency) represents a substantial store of value. When gold hits $5,000.00 per ounce, it will be clear that nobody believes that the dollar represents a substantial store of value, or any reasonable store of value. The question is whether the actual widespread realization will occur at $2,000.00 per ounce or $3,000.00 per ounce or maybe even at $1,300.00 per ounce.

Considering that gold went over $800 in 1980 during an inflationary crisis and that with seemingly "normal" inflation the price of goods seems to double about every ten years, I figure that gold is massively undervalued vis-a-vis the dollar and should actually be selling for at least $2,400.00 per ounce. I am not an economist (thank God) by any means; I am considering the price of goods in dollars, and gold is clearly a "good" in the marketplace.

I have been watching the price of gold for months, and I have noticed that sudden downward movement in the price seems to occur on a regular basis while the New York NYMEX market is open. Just like it did on Friday when it dropped about $30 in little over an hour. Not a huge drop, but a significant "correction" that occurs with regularity when NYMEX is open, interrupting upward trajectories in the price. Could this be the New York banksters subtly influencing the price of gold to keep confidence in the dollar and the dollar-denominated U.S. stock markets until the banksters milk them dry? I believe this is what is going on.

The stock markets are worthless as an indicator of our present status. The nervousness alternating with false confidence is enough to drive a person crazy. Its down today because Greece may default, then it's up tomorrow because the Fed will print money out of thin air to save the world. None of that market reaction is relevant because it is based on feelings. The feeling that Greece may affect other economies. The feeling of elation when the Fed pumps money from nowhere. The only exception to this will be when the panic goes full-tilt. When we see a day like Thursday, May 6, 2010, where the DJIA loses almost a thousand points in minutes, except that it keeps on falling, it is SHTF, TEOTWAWKI, or whatever you want to call it. That's when the banksters are taking their money and heading for the exits. That is when preppers head home to bar the door, fill up the bathtub, and oil the guns one more time while the rest of society makes suicidal treks to the Mega Mart to buy the stuff they should already have stored away.

When stocks are worthless, the dollar is worthless, and no fiat currency seems to be trusted, a huge rush will be made into physical gold. There is simply not enough to go around, and even the paper gold market has outsold the physical gold by at least 100 to 1. That is when gold will hit insane highs as the Big Money looks for a place to store it's pillaged fiat-money denominated worth before it becomes worthless. That will be my ROFLMAO moment. Gold is a relatively stable store of value when in competition with a fiat currency. The same is not true when gold is in competition with food, water, heat, fuel, clothing, shelter, and other necessities that cannot be obtained with a collapsed fiat currency.

The moral of this rambling story? Tangibles, tangibles, tangibles. Preferably things you can use, so that maybe someday you can trade your tangibles for gold from cold and hungry banksters after they realize they have not escaped the collapse they created.

More on Tangible Gold

New article by Nathan Lewis at Huffington Post about the paper gold trade. Read all the way through to see the dangers of dealing in paper gold. Again, do not buy precious metals unless you can physically possess them.

Tangibles Should be Things You Can Touch

This post is inspired by all the advertising and discussion I have been reading over the past year or so about owning precious metals. There is a lot of information out there urging us to invest in precious metals such as gold and silver, and much of this makes sense given the state of the economy and the increasing decline of our fiat currency, the dollar.

I have to wonder, however, if the market for gold in particular is being manipulated by the powers that be for their own benefit. By "the powers that be" I am referring to the government, banks, and investment firms. I have noted before the interesting status of the price of gold, that it seems to be maintaining at between $1,100.00 and $1,125.00 per ounce for several months now. Having read a little about the nature of the commercial gold market and its manipulation (here), I am convinced that the price of gold is being manipulated to forestall the collapse of the dollar and everything attached to it.

I do agree with those "experts" who espouse owning gold (and silver) as a tangible which will hold most, if not all, of its value no matter the economic conditions. I particularly agree with those that advise physically owning gold rather than investing in gold "on paper".

I don't think that I am the only person who has noticed the exponential increase in advertisements and advice to buy gold. I can hardly turn on the radio, open a magazine, or visit a blog without some exhortation to buy gold. I note that this increase coincides with the rise in the price of gold over $1,000.00 per ounce. Given the money spent on the advertisements, I have to wonder what the profit expectation would be from the delivery of so much gold. If the gold has so much value now due to factors such as the weak economy, a weak dollar, and the possibility of impending economic collapse, why are so many companies eager to sell gold now?

Then the answer occurred to me: They aren't selling gold. Think about it. How many of these purchasers of gold are actually taking physical delivery of the gold? How many purchasers are simply holding pieces of paper which states that the buyer has purchased a certain amount of gold from the seller, and nothing more? What are these pieces of paper really worth? What does a purchaser get if he/she demands delivery?

The gold market consists largely of traders who buy and sell pieces of paper representing "ownership" of gold. The vast majority never see or possess the gold. The pieces of paper are worth what the traders say they are worth so long as everyone believes that the gold exists. If someone tries to call in their gold, the market rules generally allow for settlement of the gold contract in cash. As soon as someone seriously makes a substantial demand for delivery, or when the "cash" in the cash settlement is worthless (ala Zimbabwe dollars), the whole scheme will come crashing down. It will crash because there is nowhere near enough gold to fulfill the contracts.

If the price of gold starts breaking out into new highs every day, as would be likely in an economic collapse, delivery might be demanded but it will be too late. This will occur at the end stage, where survivors try unsuccessfully to pull what they can out of the rubble of the collapse.

This scheme of selling gold on paper works particularly well when, as now, gold prices are high. There is little risk that the big players in the market will ever have to deliver the gold, short of an outright economic collapse where the dollar becomes worthless. If the price stays the same or slowly increases, there is no reason to demand deliver of the gold, as it appears to be a good investment. If the price of gold declines, the owner of the contract will sell the "gold" in the contract without ever having seen it to avoid further loss.

The following analogy is how I see the current gold market: You give me a thousand dollars to invest, taking it on faith that I have invested in widgets. Of course, there would also be a small brokering fee and/or fee to store the widgets for your convenience. If the price of widgets holds or slightly increases in value, you will probably leave the "investment" alone and I will be able to use the money as I see fit. If I am smart I will have many investors just like you so that I can either live off the interest by investing the money for myself, or I will have enough of a cash cushion to pay off those investors who want to withdraw. With this system I could take advantage of most investors, if not all, by arbitrarily declaring that the price of widgets has declined by forty percent. Those investors who decide to take their losses and cash out will have abandoned forty percent of their investment to me without me actually investing anything in widgets or providing verification that the widgets exist. If paper money should become worthless and widgets worth their weight in gold, good luck collecting widgets from me as I will have disappeared in the chaos of the collapse.

Investing in tangibles, as those of us preppers are wont to do, should only be in items we can physically possess. Only items that we possess have any value in a future economic collapse, societal collapse, or other calamity. Silver coinage, ammunition, and even cans of chili will have more stored value than any pieces of paper denoting ownership of gold purportedly held in some far off warehouse. When the collapse happens, holders of paper gold will be occupying FEMA camps with people waiting for their government checks.

Now They Own It

The Democrats have managed to push that obamanation of a health care bill through the house. Without a single Republican vote they will effectively be taking over one-sixth of the American economy. My representative, Cathy McMorris-Rodgers, did not vote for the economic death bill.

Out of the 219 Democraps who voted for this Marxist manifesto, I am going to find the one's that are in nearby districts, then do what I can to contribute to their un-election in the fall. I encourage everyone else to actively work against these 219 traitors to the Republic.

I, for one, am mad as hell and I'm not going to take it anymore.

Remember in November.

Waiting for the Other Shoe to Drop

I haven't posted in just over a month now. I've been watching the economy and politics, wondering when the crash is going to come. There are enough indicators that it is going to happen, what with the government spending like there is no tomorrow, China signalling that it will stop buying our debt, phantom buyers of treasury bills, and the price of gold persistently staying above $1,100.00 per ounce. I have been noticing something interesting about gold over the past few weeks: whenever the price gets over $1,140.00 and appears to be heading higher, there is a sudden drop off in the price, bringing it down near $1,100.00. I have noticed that this just about always happens only when the NYMEX market is open. Is someone manipulating the price of gold to keep the dollar afloat?

So, I firmly believe that an all out economic collapse is in the works. I don't know if it is a slow collapse over a period of weeks or a sudden collapse within the space of a day. But there is no way that the government can continue to spend the way it does without consequences.

Today I read some news that I believe is the other shoe, and that it has dropped. Get ready for the collapse to gain momentum.

According to this story on Newsmax, the social security trust fund is now running a deficit. It is paying out more to retirees and other claimants than it is taking in. What is even more alarming is the fact that the social security trust fund is now going to call in all of the IOU's from the federal government. That's right, the government is going to have to start paying back all of the money that it borrowed over the years to finance massive deficit spending.

The federal government borrowed from the social security trust fund so it would not have to borrow from foreign sources (read: China).

The solution seems simple. Either cut spending or replace the "domestic" borrowing from social security with foreign investors. If the recent news is any indication, cutting spending is out of the question. The Obamorons plan on running a deficit in 2010 of over $1,500,000,000,000.00. That's before we add in the costs of the Obamacare Obamination and other boondoggles.

That leaves foreign sources. The two biggest foreign purchasers of our debt, China and Japan, have been cutting back. China has been rumbling that it will not be purchasing more and will in fact sell off treasury bills if something doesn't change. So far the Obastard has thumbed his nose at the Chinese. Japan doesn't look much better after it has elected a less-than-pro-U.S. government.

With tax receipts in free-fall, the federal government has little choice but to crank up the printing presses and line up more phantom buyers at the treasury auctions.

I think this is the beginning of the end. Got preps?

C'mon, C'mon Get Happy! (Not!)

The MSM is trumpeting the slightly lower unemployment figure for November 2009. Wowee!!! Dropped from 10.2% to 10.0%. MSM is falling all over itself to give credit to the Second Carter Administration.

Last week we were supposed to be psyched about the possibility that Black Friday sales would be robust and result in an uptick in our consumption economy. Actual results were mixed.

Back to unemployment. I would be extremely surprised if unemployment did not drop in November and again in December. Why? Simple answer here.

Many, if not most, retail establishments hire additional staff during the holidays. For many businesses, the Christmas season is a significant amount of sales. Some retailers have 25% or more of their sales in November and December. In years past, I recall news stories about businesses that would not be able to survive to the new year without the significant increase in business from holiday sales.

Just look at how many companies fold right after the holiday season. Not too many years back Montgomery Ward folded its tent after holiday sales failed to keep it afloat. Look to see a whole lot of well-known retailers close up shop in the first quarter of 2010.

My response to the much-heralded November unemployment figures: Keep on Prepping.

My prediction is that after two months of slight decreases in unemployment (November and December), unemployment figurs will increase by at least 0.5% for January and keep climbing. The Obamessiah, after claiming credit for the drop in November and December, will be clueless as to the increased unemployment next year. After all, he has never held a private sector job or had any management experience prior to becoming Marxist-in-Chief.

We are not out of the woods. As a number of other commentators have said recently, this will not end well.

Liar, Liar

Let's see, the Obamessiah told us on September 9, 2009 that illegal aliens would not be covered under his health care plan. Congressman Joe Wilson shouted out, "You lie!". Then, in a stunning turn of events, President Obummer is quoted as saying, on September 16, 2009:

"Even though I do not believe we can extend coverage to those who are here illegally, I also don't simply believe we can simply ignore the fact that our immigration system is broken," Mr. Obama said Wednesday evening in a speech to the Congressional Hispanic Caucus Institute. "That's why I strongly support making sure folks who are here legally have access to affordable, quality health insurance under this plan, just like everybody else.
Mr. Obama added, "If anything, this debate underscores the necessity of passing comprehensive immigration reform and resolving the issue of 12 million undocumented people living and working in this country once and for all."

Sounds like a call for amnesty, to me. Especially considering Comrade Obama's audience.

I think I'll make another donation to Congressman Joe Wilson.

Source: Newsmax.

Not Saved or Created by Obummer

I tend to snicker whenever I read (and frequently do read) some boast by that idiot Obummer about the jobs that are supposedly saved or created by his economic Ponzi scheme. Anyone who believes that the government's Porkulus package has saved a single non-government or non-United Auto Workers job is an idiot who deserves to be taxed to death for emitting carbon dioxide.

A couple of months ago I ranted against Obummer raising tobacco taxes and opined that doing so would only hurt the poor. I also commented that because the new taxes would disproportionately affect the poor, it violated Obummer's pledge not to raise taxes on anyone making less than $250,000.00 per year.

Now we see that Obummer's new tax not only hurts the poor, but it puts Americans out of work. The company that makes Hav-a-Tampa cigars (cheap, machine-made, but made in America) is closing its Florida plant, putting 495 Americans out of work. I read the story in the Miami Herald.

When will this country finally wake up and say NO to these bullshit social engineering experiments? And yes, I do realize that the additional taxes are to fund the State Childrens Health Insurance Program. However, the source of funds is only temporary. As the State of Washington has found every time it raises tobacco taxes, the tax boon is short lived as people either cut down on use or find ways around paying the tax.

Now, I realize that smoking is bad. However, in keeping with my conservative, libertarian beliefs, I believe that it is personal choice whether to smoke or engage in any other bad habits (although I am firmly against legalizing hard drugs such as meth, cocaine, and heroin). Don't get in my face about my smokes, and I won't torch your jumbo-size bag of Doritos.

We are about to engage in social engineering on a scale that even Hitler, Stalin, and Mao could only envy. From state-run health insurance, government-run car companies, the socialist restructuring of the financial sector, to the hysteria over "global warming" and "green living" we are being herded up like cattle (OK, sheeple) and put in a pen for a managed existence. And to what societal cost? Do people even realize what freedoms are being flushed down the toilet so they can have cradle-to-grave care and "free" asswiping from the Obamanation? How many freedoms, and how many lost jobs, will it take before people reject this crap? The flushing sound just keeps getting louder and louder. It just makes me sick thinking about it.