Catharsis, Reflection and Opportunity

I woke up stewing on the several rental properties that my wife and I own on this fine Sunday morning. As you can probably guess, I am the scholar of the family while she is the entrepreneur. After the kids were in high school, my wife, needing something to do, decided to get into rental properties. We read some real estate books and decided to flip a house!  We did OK on the first one, except the bank earned nearly as much as we did. One thing led to another and we stopped flipping houses after the second one and decided to buy, hold, and rent. By 2009, we had 9 properties, but the economy had crashed.

In 2009 my uncle, who owns a local bank with several branches, invited me to drive 4-wheelers in the mountains of Colorado near his cabin. I figured if anyone understood what happened in 2008, he would. On our drive up into the mountains, we had a chance to talk. He said he did not know what went wrong, in 2008. He said that Wall Street banking was over his head. I was shocked! And since my retirement had just lost 60%, I wanted to know why.

So I turned my scholarly eye to understanding the economy and I did not like what I found. I awoke over the next few months, discovered silver later that year and we started stacking. A year later, we started preparing for the new economy, reading and posting on participating on discussion boards like this one to stay on abreast of all the canaries and swans. And our real estate sat there, grinding out a small profit each month as we scrambled back and forth, making repairs, screening renters, and generally working for the bank.

The world economy is not recovering now in 2014. As the sophist Gorgias said, “to tell the knowing what they already know, may seem right, but brings no delight.” Thus we don’t need to discuss the overwhelming evidence that we are headed for a big reset of some sort.

But after trying to sell out in 2010 and 2013, we still have this rental property. And as QE has taken hold, pumping up stocks and real estate where most people keep their wealth, that inflation has provided the ostensible argument the MSM needs to persuade the majority of the population that the economy is recovering Yellen says, “Stocks are up, inflating your IRA!, Real estate is rebounding, giving back your equity! All is well,  folks! Right? Right folks?”

The rental property is paying its own bills, still allowing us to skim a small profit. But trouble is brewing. Though my realtor says sales are strong in the area, national data presents a gloomier picture that will overtake my region. A day of mark to market valuation is coming. Deflation can wipe out my equity in those homes. Recession can wipe out my renters. And if that happens (when that happens) the banks will seize my hard earned wealth, cause I still have mortgages on those houses.

As we attempt to sell the property again, we recognize that somebody is robbing us. When one sells an asset after holding it for several years, who benefits? Let’s see, let’s do the math.

I paid 85K in 2007 for a duplex on a golf course. According to John Williams, the inflation rate has fluctuated between 3 and 8% for these years (1990 method… the 1980 method is even more radical), making the home arguably worth 121K today. But I have NOT earned 36K, but have earned nothing, due to real inflation. And if I liquidate, I pay 28% tax, or 10K, on an imaginary gain! And rental returns on the property have not been lucrative.

Damn! Who am I working for anyway?

If I had bought gold with that down payment instead of the property that day, I'd be ahead by 94%, even at these suppressed prices!

But I was a sheep, putting my money where the MSM said was the wise place to put it. Oh God! I wish I had not stopped collecting coins as a kid, but kept up on the hobby. Then I would have been in tune with the real value of precious metals and perhaps, just perhaps, I would have awakened sooner. Thank God that I did wake up! I have been shaking my relatives, trying to wake them up, but I guess they like their dream world better than reality.

But wait! This no time for catharsis, reflection, remorse, or regret! Even after being robbed of 28% by the IRS, I am still better off to make a move now. QE has bought us all some time and opportunity. Markets are not dead and gold is still suppressed. The economy has not collapsed yet. So there is time to sell whatever we have that has equity and put that equity into gold, keeping the things that we will need for the new economy.

According to Mike Maloney, we will experience deflation before inflation really begins. Indeed, in housing we got a taste of deflation in 2008-09, driven by fundamentals with too much product and too few buyers. Another round of housing deflation, especially if connected with higher unemployment, will probably wipe out any equity I have in the rental properties, as well and cause me to lose enough tenants that I begin to fall behind on the mortgages. Selling the real estate now before the deflation hits is a no-brainer. Putting that equity into gold or livable land is a no-brainer.

So I have seven properties for sale and “NO” you cannot buy them. Go buy metals instead. I am looking for buyers who refuse to wake up, are committed to the current system, and will lose all they have anyway.

But my personal decision goes deeper and is perhaps one that you face as well.

Taking equity out of my current home is a difficult question. Do I try to pay it off to be free of banks, or do I take equity out through a refinance or sale? (Of course, I am asking these question for all to ponder.) If I sell out, I have to live somewhere and then likely make a move—not an attractive option. If I refinance the equity out, I only get 80% and probably lose all hope of paying off the place and staying here.  If I do either, then wait for the deflation, maybe, just maybe, we can purchase a comparable or better home. Frankly, refinancing and putting the equity in a bug-out home, then continuing to live and work in this economy seems the sensible thing to do.

But my wife prefers to try to pay off our current home. Though I’d like to move the equity to gold, the past few years make that a more difficult argument to support. 

Another question for all of us perhaps, is “How do you protect your paid off property from creditors?” I still hope to get out of debt by the time of the reset, but what if I do not?  Can I set up a trust for my children, place a paid off home in that trust, then live in it as the economy declines without fear that a repossession of my other refinanced house will jeopardize the paid off house? Perhaps some familiar the law, trusts, and corporations can steer us in the right direction. My best friend’s brother is a lawyer who says that your kids are there for this purpose. Put the house in my daughter’s name. Problem solved. Hmmm…

In the past, banks have opted to accept the foreclosed home as payment in full and not pursued the delinquent homeowner for losses. Will they continue that practice? Or will they follow a more devious option, taking you to court to recover their loss of equity, forcing you into bankruptcy? Knowing bankers and lawyers, I suspect they may start pursuing option 2. So does a trust protect you, or will the laws be changed to let them steal your fiat?

Whatever we decide to do with equity in our possessions, I bet that seven years from now, those who sell now, before deflation, and buy gold or land they can make a living on, will pat themselves on the back. We have the opportunity today to dodge what comes in part, preserving as much wealth as we can. And I think many of us are wealthier than we realize—especially that gold is still suppressed and undervalued.

I shall not regret my missed opportunities of the past—like $8 silver and $500 gold, and instead, I’ll make the best decisions I can from today forward. Given the reset that is approaching, business as usual is NOT my best choice. I am grateful to QE, ZIRP, & NIRP for extending our time table these extra years. It is giving people like me, who started stacking later, time to resettle, time to board up the house, situate the equity into a safe place, and have a hope that we will be standing firm when the storm is over.

Hmmm… I wonder what else I have of temporary, fleeting value that I should sell?

71 Comments

metalsbyamile's picture

Ok Dr Jerome

Let us assume AU/AG take the rocket ride we all expect or at least hope comes about this summer.And you have not sold off property.Now what? Do you wait for a retrace and then buy in? I'd suggest you are playing a dangerous game with such moves, putting your family in danger along with a precarious supposition.

Every single financial advisor in the world, even MSM adopted vermin of the same ilk will tell you leveraging or margining AU/AG is tantamount to nuclear disaster.

Now i confess i have skimmed your thought provoking article and shall re-read it in depth so perhaps i misconstrue your intentions or questions.What stood out, and again maybe out of context on my part, that you ponder the idea of  selling property to convert to gold? This of course brings in to mind the question above of timing. We know r/e is not always liquid in quick fashion. Drawing out equity from property to invest in any thing is a sure recipe for disaster, or to be more succinct, a gamble not worth the r/r/r.

Living on this side of the globe i can state categorically that any thing i knew about trust laws in the states would be both obsolete and now long forgotten,so , no comment.

Many things to ponder. Theory and reality.

Add. Re-read the article. Sure appreciate the contributions you make here Dr. J. I will add some comments and perhaps amend one this after noon.Off to work.

Nick Elway's picture

Dr. J, I thought you HAD your

Dr. J, I thought you HAD your bug-out home.

Thanks for the article Your situation sounds like my situation:

Quote:
Frankly, refinancing and putting the equity in a bug-out home, then continuing to live and work in this economy seems the sensible thing to do.

But my wife prefers to try to pay off our current home.

My wife really loves our current home.  Maybe she will be somewhat persuaded by the "Accelerated Crash Course"  My kids are clueless, working in the medical profession and loving Obama.  Wondering what can I do to save my grandkids..

Spartacus Rex's picture

Um, Dr. J....

Does this mean ixnay on that new property you looked at today?

And yes, setting up 1, or preferably more Trusts in which to place your various assets, is a very Wise thing to do, and don't try to cut corners, or skimp when it comes to having a bullet proof Trust drawn up.

Learn from the masters, ie "Own Nothing, Control Everything!"

Cheers, S. Rex

Dr Jerome's picture

Metals et al

Metals,

I see the gold as having less risk than that particular property...

My property is steadily losing value in a depressed part of the nation. We no longer live there (new job across country in 2013) and cannot manage or do our own repairs. Our profit margin is dropping. I just paid a contractor $2K to do a job I could have done for $500. There is still some equity in three properties, but I fear deflation will consume simply from a declining economy in that area, without a collapse. 

I don't plan to leverage AU, just add to the stack, or purchase a more suitable bug out home near where I work and live now.

Nick, Yes, I thought we had one ... or two. A relative owns a lot we we have been planning to purchase from her and build on for the past two years. I even have plans. But, we have all decided that she needs to keep the lot. So we were looking for an alternative. Thought we found one last night. We had to go through the decision process of whether or not to sell the stack. We may still try to purchase that one, but it will be in probate court for a while.

S. Rex,  I hope not. It is a nice property. Three other people see an opportunity also and have bid the price just out of my range. But the probate court will hold that top current bid and then re-open the bidding in 6-8 weeks. We are keeping our options open.

atarangi's picture

reflection

CXAlWxB.jpg

Occasnltrvlr's picture

Dr. Jerome

First of all, I have two things to say - easy for me to say, being an armchair quarterback and all.

First, there's a great deal of credence in viewing metals as insurance.  Would you let your homeowners' insurance lapse, for even one day?

Second, one of the simple, classic rules of trading:  don't fall in love with your stocks.  Those properties in Ohio are investments, they are not appreciating, and they are causing problems in your mind and spirit.  Cut and run - take losses.  Reinvest elsewhere.  (Nobody cares about Kings Island anymore, anyway.)

Third (okay, maybe that's "three things"), pray.  Unless God Himself is giving you specific direction to buy a particular property, don't get suckered into that old "...and if you call in the next fifteen minutes, you'll also receive..." shtick.  Buy when you are ready to buy.  Just like after a breakup, "another property will come along, just when you least expect it.  You'll see."

If TSHTF before you're settled, nobody can predict what, exactly, happens.  Maybe half of all real estate doubles in fiat price and half halves.  Regardless, your stack will have helped carry you through.

beinki's picture

I've diversified into personal health care

For me personally I have stacked what I can to preserve my families financial health but now I see a need to protect my families physical health. Many of you know my exploits and success with colloidal silver, I have raised the bar and became a Youngevity distributor of Dr. Joel Wallach"s mineral supplements. The results are amazing, No more allergies, thyroid issues gone , losing weight, blood pressure down. Please fellow turdites look into this for yourself and take back your health-this will provide HUGE returns. http://1beinki.my90forlife.com/

Spartacus Rex's picture

Dr. J...

If I may ask what seemingly may appear to be a silly question,

Do you understand why Retailers will blow out non moving inventory at 50% off, 75% off, or even higher?

Answer: To free up Capital tied up in non performing assets, so it may be deployed into something else with a better promise of higher return on capital invested.

Ergo, learn to cut One's losses, "the earlier the better" is best, however never be afraid to take a temporary loss or setback, because it can always be recovered when implementing the remaining Capital elsewhere, where returns have a better chance for success.

Seriously, which do you think has a higher chance of rebounding sooner and far higher from current levels, Gold / Silver or Real Estate back in depressed Ohio?

You are no longer in Ohio and thus cannot personally manage such properties and thus are being trapped into being nickeled and dimed (more like 2K'd for a 500 job you could have managed yourself) so take what you can get, if that provides you with a tax deductible loss, great! If you do manage to have a small Capital Gain, even better and you have how many Months to reinvest same in similar property closer to where you actually live in order to to avoid the Capital Gains Tax?

And if the property you viewed earlier sits in your heart and you can see yourself happily spending the next 10-20 years there, then BUY IT, otherwise Gold and Silver are still a bargain at this point, and have  a much greater upside potential, with a far smaller downside risk over the next 10-20 years than the Capital you have locked in equity back in Ohio. 

To me it seems like a No Brainer, but we each have Free Will.

Cheers, S. Rex

Mantis's picture

Dealing with Debt

Dealing With "Debt"   Because of the very high percentage of the money earned being taken away from the average person, it is not unusual for Professor.jpgBills.gif people to end up with what looks like "debt".   Most people spend their time worrying over the statement of what they are told they owe, and do endless calculations to see if they agree with the numbers which they have been sent.   Again, this is the sort of misdirection which magicians use to fool audiences, distracting their attention away from where the action is really taking place.   Here, the question is really not "How much is owed?" but instead it is "Is anything actually owed?".

You need to remember that any financial institution is a legal fiction and does not actually exist.   As a result of this, it can only deal with other legal fictions (essentially, other pieces of paper) and it can't have any dealings with a man or a woman as they are not legal fictions.   It is also important to understand what passes for money nowadays.   Let's say our trusty friend James Martin goes looking for a loan and he fills in an application form with the Swindle Bank Limited for £10,000.   Interestingly, the form which he is asked to sign, says that he has already received the £10,000 although the loan has not yet been approved.

The next day, the loan is approved and James is handed a cheque which he is asked to sign and lodge to his account with the bank.   We won't follow up on that very interesting procedure at this time, but please remember that he has now provided two signatures for £10,000 in the strawman name, and all he has received is a 1 and four zeros in the accounts of the Swindle Bank Limited.

Broke.gif All goes well for several months until James loses his job and does not manage to get another one.   This is financial trouble which he does not know how to deal with. Time goes by and James has not had sufficient money to make payments against his loan from the Swindle Bank Limited.   He starts getting letters from the bank saying that he must pay the arrears immediately and keep up with the payments in future.   There is not the slightest chance of that happening as James just does not have the money and he does not know what to do.
Neighbour.png
Fortunately, Peter, the next door neighbour of James happens to be an independent financial advisor with years of experience, and James has the brainwave of asking him for help.   Peter is willing to help and so he sits down and goes through all of the paperwork.   Then he tells James:   "You must not ignore this situation.   Write back immediately and say that you agree to pay any financial obligation which you might lawfully owe, ON CONDITION that they:

1. Provide validation of the debt, that is, the actual accounting.
2. Verification of their claim against you, that is, a signed Invoice.
3. A copy of the Contract binding both parties (you and them), and send that letter by recorded delivery so that there is an independent witness to it having been delivered."

Every letter you write should be marked clearly "Without Prejudice" which means that you reserve all your lawful rights and accept no contract unless it is shown to be lawful by meeting the four conditions essential to a lawful, binding contract, namely:

  1. Full Disclosure (you were not told that you were actually creating the credit with your signature)

Equal Consideration (they brought nothing of value to the table and so have nothing to lose)

Lawful Terms and Conditions (yours were actually based on fraud), and

The signatures of both parties (corporations can't sign because they have no Right or Mind to contract since they are soul-less legal fictions, and no third party can sign a contract on their behalf)

Peter then tells James that agreeing to pay, provided that evidence of a lawful debt can be produced, stops him being taken to court because courts only adjudicate between parties who are in dispute, and as James has agreed to pay, there is no dispute, so the court would not accept any application for a hearing.   If the Swindle Bank were foolish enough to try, James has only to send the court a copy of his letter agreeing to pay and the case would be thrown out immediately (and the Bank might well be penalised for wasting court time).

The bank is now in trouble as it has been running a con game on James and so can't produce the documents for which James has asked.   The request by James was reasonable in every respect.   However, a loan agreement is a contract and so there has to be full disclosure of all the details (which there wasn't), both sides have to put up something of equal worth (which didn't happen) and the contract has to be signed by both parties (which the bank can't do).   So, the bank has a real problem.

Clerk.gif The bank will probably send a Statement of what it wants James to believe is the outstanding amount.   James should return this with a polite note saying that a Statement is not an Invoice, so would they please provide a signed Invoice as requested.   They will also probably send a photocopy of his Loan Application form, at which point James should write back and point out politely that it does not constitute a contract as it is only signed by one of the parties (himself) and he has asked for a copy of the Contract signed by both parties.

The bank is likely to go silent at this point and stop corresponding with James.   James should then write again, requesting that the necessary documents be sent to him within the next fourteen (or perhaps 28) days, and if that does not happen, then he will consider the debt to be fully discharged.

Phone.gif The bank will either remain silent or write back to say that the debt is fully discharged.   If the bank tries phoning, then just tell them politely that you only wish to deal with this matter in writing, and ring off.   If the bank remains silent for the stated period, then James should write back stating that due to the bank's failure to provide the necessary evidence of a lawful debt within the reasonable time provided, that James now considers that the debt is fully discharged and ask the bank to confirm that in writing.   The bank will normally write back confirming that the debt is fully discharged and that there is nothing owing and if it does not do that, then it will just stop asking for any further payments.

The reasons for how and why this takes place, takes a good deal of explaining and many people find it difficult to understand.   So, it is covered in detail here.   Many people think that this process sounds like you ripping off the bank, but this is definitely not the case.

--

http://www.yourstrawman.com/

Spartacus Rex's picture

@ Mantis "Dealing with Debt" Seriously...

Does the fact that the author of the tripe you posted conveniently remains anonymous, and provides absolutely ZERO Points & Authorities in Law to back up B.S. assertions NOT RAISE A RED FLAG to you, or do you rather enjoy having smoke blown up your backside?

Cheers, S. Rex

El Gordo's picture

Debt free

Do you wonder why our beloved government has taken over the student loan program, the housing programs, and agricultural lending programs?  Do you think it is for the noble purpose of providing easier access to these beneficial activities which will ultimately result in world wide utopia, or do you think it is an effort to enslave the public and to require it to do government's will.  Taking over the student loan program was a stroke of genius as government captured and enslaved an entire generation with one stroke of the pen - they'll never get out of debt.  Same as dealing with a loan shark - you own them forever.

Get out of debt by whatever means possible.  Asset allocations and proper asset diversification can be debated, with a little extra on one side or the other, but overall a proper balance of liquidity, investment, a little speculation, and some prepping.  Now we all know that we never own real estate - we rent it from the government, and there is nothing there to stop the government from taking whatever level of rent it wants (called taxes) whenever it wants,  so even debt free real estate is not really debt free, and we have to count on inflation to cover our cost to carry.  So, what's left.  Fed inflated stocks which could blow up at any time, or PM at the bottom of the lake?  Who knows, but I would suppose a little of all so long as we remain debt free.  My $.02.

Spartacus Rex's picture

@ El Gordo

"Now we all know that we never own real estate - we rent it from the government, and there is nothing there to stop the government from taking whatever level of rent it wants (called taxes) whenever it wants,  so even debt free real estate is not really debt free, "

Do you comprehend: FEE SIMPLE?

Property Taxes Pay for One's pro-rated share of Local Public Expenses incurred, and if they seem to high, that is why we have local elections, and/or the Right to Vote with One's Feet and Move elsewhere which has fewer services provided that One deems they neither need or appreciate.

Your  misconception about ownership or  "rent" belongs more with the whines of the Free Sh*t Army, rather than in Texas, What Gives?

Cheers, S. Rex

achmachat's picture

@Spartacus Rex

you wrote:

Property Taxes Pay for One's pro-rated share of Local Public Expenses incurred

that is simply not true. I have close relatives in the States that I visit often and can tell you that your infrastructure, your streets, your utilities are pretty close to Third World level. Your property taxes are NOT used for maintaining your streets etc. Go figure what they actually use it for.

Let me give you an outside view example: The country I live in has pristine streets and roads, you won't find a single piece of trash or litter. Our utilities systems are state of the art, and I could go on and on and on....

Now get this: For a pretty large house in one of the main cities here, I pay around 120 € property tax. PER YEAR.

Mantis's picture

SrEX

Don't shoot the messenger.

I don't see what the source being anonymous has to do with it. Would you prefer there was a link to someones facebook profile ?

anyway, ive never tried it but maybe one day i will ;-)

Spartacus Rex's picture

@ achmachat

Due to my being institutionalized (ie Married) to a very beautiful lady from an old European Family, I thus have "in- laws" all across Europe, in several different Countries, and  Taxes do vary.

It seems quite odd however that since you do not have access to my Property Tax Statements in the U.S., that you would presume to have knowledge of what is contained and itemized therein. so what gives?

While different Countries may choose to rely on differing taxing methods such as the VAT or other varieties to pay for local overhead expenses, in the U.S. the majority of LOCAL Public Services appear on One's Property Tax Assessment, as well as additionally being supplemented with State & Local "Sales Tax".

Now I may be wrong, but perhaps you actually own a home or homes / property in Kent, England; Kassel, Hamburg, Darmstadt Germany; Annecy, St. Tropez France; Monaco; and even perhaps such as myself in several States in the U.S., and thus consider yourself an expert on property taxes, at least across two Continents anyhow.

But where do even remotely imagine to presume to know what is on my particular Property Tax Assessments?

Cheers, S. Rex

Spartacus Rex's picture

@ Mantis...

When the message is TOXIC and could actually get naive dupes into trouble, yeah I have a problem with that.

One of the benefits of TF providing us with this Forum, is that One can interact with, question and challenge those who merely throw shit against the wall, to actually Stand & Deliver with Points & Authorities to support One's assertions, whereas otherwise simply taking crap found on the internet as Gospel (ie I read it on the Internet, ergo it must be logical and true) by a wholly unidentifiable and unchallenged author/source is for Dupes, and I already shot that Crap and Website down Last Year here at TFMR, but do notice that the website still remains nevertheless to bait the unending supply of new dupes and suckers.

Cheers, S. Rex

Mantis's picture

Sparticus

Starting to form quite a decent picture of your viewpoint. Thanks for sharing it.

Are you aware of how banks create the credit for the loan from debt ? That is not internet horseshit it is a fact you can check. The money doesn't exist until you pledge your name. The bank doesn't loan from existing money it creates it. Perhaps you don't understand law as you think you do?

Ignorantia juris non excusat

Gold Dog's picture

Doctor

A couple of things.
If you give a house to your offspring, they own it free and clear and if you want to live there need to pay a "fair"rent as determined by the IRS. Mrs. Dog and I intend to give our house in Illinois to our children and pay them the rent. This amount, over the $14,000 annual free gifting will count against my death exemption and I will need to file a gift return. (If need be, the puppies can give us each $14,000 a year without question because they love us!

As I have discussed for some time, due to not knowing anything at all about what will hit us, inflation, deflation or some hybrid of the two I have been sitting on a lot of fiat. Most recently, on Monday I added to my Nowegian Krone at 6.130. I caught a lucky break by having DNB closed at the end of last week so got a better exchange rate by a bit than I had originally hoped for. (I will trade back to USD at 5.95 or better.)

Wealth generation is quite a different animal than wealth preservation. My understanding from the above is that you wish to liquidate real estate and use the proceeds for PM's. My sorely lacking understanding is that the metals will only preserve wealth you already have. one codicil is that with the price being so hammered we may be able to enjoy a double or even triple once it's freed up, that would fall under generation not preservation.

Those looking for $300 Silver and $6,000 gold in today's Dollar may be tilting at windmills. Don't forget, I know so little about how things will shake out and have quite a few Farthings sitting around on the come for deflation and/or a stock market crash the will allow me to buy the means of production at a greatly reduced price.

In other news; Mrs Dog and I are currently in Naples looking at real estate, first to rent in 2015 and then when conditions are right we want to buy a place to winter in as the years roll by. We are staying at a friends condo about a block North of the Beach Ritz and there doesn't seem to be a housing recession in this rarified square mile! $600 a square foot is more than I paid for my house on the North Shore and that came with plenty of land.

Well Turdites, it is time for my beach walk and swim before it gets too hot.
(The potato goes in the front, right?)

Your friend,

Dog

Spartacus Rex's picture

@ Mant(a)s

I have been in the Honest Money/Honest Government Movement for over Four Decades. I paid my own way through Law School upon returning to the "Real World" in 1971, and made damn sure I got every last penny's worth, and thus I EAT Attorneys, even those wearing black robes sitting on the bench.

There is nothing "new" that you can teach This One in either Law or Latin.

BTW You like Steve W., have it back a**wards, as Debt is created from Credit, and Banks do NOT create "Money", they create Debt by issuing Credit.

Cheers, S. Rex

Gold Dog's picture

Property Taxes

In Illinois I pay around 1.9% of fair market value every year. The two biggies are the local schools and pensions for teachers, LEO,s and firemen.

There are about 30 other categories for parks, snow removal, the library, etc. That are all much smaller.

As info.

YF,
D

EDIT- Adding in opportunity cost it appears that I will send the full value to my local municipality every 25 to 30 years.

Spartacus Rex's picture

@ AUggie DOGgie

I am guessing that you will be giving 14K in Fiat rather than in actual Dollars (ie "$") DOH!

Cheers, S. Rex

Spartacus Rex's picture

AUggie DOGgie..Property Taxes

Thus can you figure out WTF amachat is talking about? Does your Property resemble a "Third World"?

Cheers, S. Rex

Gold Dog's picture

Rex

The children are given $14,000 worth of PM's from each of us annually. All contained in a box with receipts and everything they would need if the revenuers came around.

Everyone has access to everyone else's safety deposit boxes with instructions on what to do if the balloon goes up and travel is restricted,etc.

Procrastinator Dog

Spartacus Rex's picture

@ AUggie DOGgie...

Do yourself and children a favor and do not use the $ symbol if you do not know what such actually means. 

Do you at least comprehend and grasp the meaning of "Statutory"?

BTW, How many Gold Double Eagles & Gold Eagles did your Grandparents or Parents leave as a legacy for you, after you demonstrated that you learned the difference and thus earned them?

Any chance of you visiting Capri?

Cheers, S. Rex

Spartacus Rex's picture

OH SH*T! Chris Just Showed Up! Quick Everybody Look Busy...

AND COVER YOUR BALLS!

3xctjlb.gif

Bollocks's picture

GDP Disaster

GDP Disaster: Final Q1 GDP Crashes To -2.9%, Lowest Since 2009, Far Below The Worst Expectations

Remember when in January 2014, Q1 GDP was expected to rise 2.0%? Well, here comes the final Q1 GDP revision and it's a doozy: at -2.9%, far below the -1.8% expected and well below the -1.0% second revision, it is an absolute disaster, and is the worst print since Q1 2009.

And while a bad GDP print was largely expected, the driver wasn't:
personal consumption expenditures somehow crashed from 3.1% to just
1.0%, far below the 2.4% expected, meaning that all hope of a consumer
recovery is dead. Finally, as a reminder, US GDP has never fallen more
than 1.5% except during or just before an NBER-defined recession since
quarterly GDP records began in 1947. Good luck department of truth
propaganda machine, because even assuming 3% growth every other quarter in 2014 means 2014 GDP will be 1.5% at best!

GDP long-term:

GDP%20Q1%20LT_1_0.jpg

And GDP broken down by components: http://www.zerohedge.com/news/2014-06-25/gdp-disaster-final-q1-gdp-crashes-29-worst-2009-far-below-worst-expectations

Gold Dog's picture

Rex

Hell yes! Let me talk to Mrs. Dog and see how our dance card looks.

Uncle John is taking us for an adventure on the high seas but we should be home by dark and I will know more then.

YF,

D

Spartacus Rex's picture

AUggie DOGgie..

Love you Brother, Enjoy & give my best to your Mrs. & progeny.

Cheers, S. Rex

Bollocks's picture

Spartacus Rex

What Mantis posted isn't tripe. It refers to the UK, and there are individuals who have successfully challenged the banks and lenders in the way outlined, and many are still in the process of doing so.

Two people to look up "Michael of Bernicia" (I posted up a video presentation from him here a few months back - he's made challenges in the High Court and won). There's also "White Rabbit" an ex-bank / mortgage adviser (if I remember correctly) who has a youtube channel where he's posted up recordings of discussions with mortgage lenders, bank officials, HMRC (that's the IRS in the US) and lawyers - showing how the system is corrupt in the way Mantis's article partially reveals.

Not tripe at all.

sierra skier's picture

Quite the Delimma

We bought a 2nd home in 2004 from a credit line on our primary residence hoping to get in before we were priced out. I started stacking in 2009 after working other preps, firearms and ammo for a decade and a half. We sold our 2nd home in 2013 because we didn't use it enough and the appreciation we had hoped for left, a 12% loss. I have continued stacking, just retired. We have our home listed in this depressed market ready to move to a more friendly and safer location.

Those in charge have corralled us into investments in paper if we wish to make any appreciation on our money. Real estate is depressed, PMs and commodities are depressed, interest is useless and the only places to try to appreciate holdings are the QE supported paper markets. They are just waiting to get the maximum cash into the markets to pull the carpet out from under the public again and clean out their back pockets.

My wife and I are so done with California, the border, increased taxes to support the non-working, the EPA rules, and the list goes on. We are ready for a new adventure in life but we need to sell our current home and move on.

Great topic Dr J and I hope we both solve our dilemma in the best fashion.

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