The Peripatetic School

Size Matters

Are you well endowed with a large stack?

This past weekend Gamble put the question to everyone, “How much physical is enough? I thought I was good until I saw a picture of someone's stack, I think there was over a hundred ounces!” First of all, it is never good to compare your metal endowment to pictures others... you know?

Something doesn't smell right about this recovery

My wife and I watched Margin Call the other night. As the film wound down to a close, Jeremy Iron’s character (not sure if he was Blankfein or Dimon) explained to Sam, who thought it was wrong of them to sell the toxic mortgages to their clients,  that crises like this were normal. That particular scene has led me to conclude that the movie was allowed to be made to explain to all the sheep that 2008 was normal, we will recover—just another crisis like the ones we have always weathered. Is that our take-away from a good movie—that financial crises are normal and we should expect them? That we will always recover? More propaganda!  What Hollywood failed to mention in Margin Call was that the FEDs actions to create a recovery didn’t work this time.

Cynicism or realism, hope or action

The most highly esteemed world-leader, the benevolent, the all-wise Obama gave a speech on July 10, 2014 in Austin Texas—a national stronghold of conservative ideology. The things he said were quite revealing about the state of our nation and the world. Unfortunately, what he said was founded on highly debatable “facts.”  The speech can be read as what we in the field of rhetoric call an “apologia”—a speech in defense of one’s character or actions. Why not take a closer look (if you can stomach it) and see what Obama really said. I suspect it will harden your resolve to continue preparing your life and family for the new economy, as it has mine.

Conversion to Physical

A conversion from loving fiat to loving precious metals is like converting from one radical religion to another. It has to be complete and it could cost you much. Those who talk too much about their conversion to family & friends are often alienated. But, you are literally saving your soul from the hell of poverty and destitution…that is if you believe in societal collapse, or even economic impoverishment as a nation. With conversion to precious metals, you cross a line. You are putting your labor-wages into true money that will survive whatever hell may be approaching us.

(I wonder if those guys in purple & red signify bankers? I guess we'll have to ask Dante.)

The Dependent

On September 14th, 2008, Hurricane Ike had moved inland across the US, bringing heavy rain and 70 mph winds to our home in Ohio. How ironic that the hurricane ripped across the nation as Lehman was imploding? The power went out for a week. That night we lit candles, got out the Coleman stove and heated up canned food for dinner. The kids loved it, scurrying all around the house setting up candles, feeling like we were living primitively. What if, instead of that hurricane, the Lehman collapse and a lack of TARP would have “cut the liquidity power” to the world financial system? A fictional, “what if” retelling of that week provides me with a bit of perspective.

Catharsis, Reflection and Opportunity

I am feeling some urgency this week.

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. 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! 

But wait! This no time for catharsis, reflection, remorse, or regret! QE has bought us all some time and opportunity. Markets are not dead and gold is still suppressed and available. The economy has not collapsed yet. So there is time to sell what we will not need in the new economy and buy gold, keeping the things that we will need.

Who's got your back?

One cannot help but notice the exuberance around here after a small rally, as well as the pessimism after smashes. But I hold my emotions in check by working on other projects that prepare my family for the new economy. As of late, those efforts are being channeled into constructing physical living arrangements as well as developing relationships with people who can help my family survive the future and vice-versa. Friendships can run deeper than blood and family can be flaky. Find solid stable relationships and strengthen them to provide a solid foundation your house.

Fiat Angst--Rejecting the System (FARTS)

Is this a happy Tuesday? Well… probably not, so let’s talk about other stuff. Early in 2012, with gold soaring, and a key restriction lifted off my retirement account as I switched jobs, and with a severe case of fiat angst, we decided to reject the system and convert our fiat into precious metals.  A month later, I was 47% poorer, if I count wealth in fiat. 

Today I see lots of negative emotion out there in the blogosphere from people who did as I did. They are frustrated at their loss, angry at those who said the system was collapsing imminently. But we are currently in the eye of the storm with the other wall approaching.

Do as you are told, or else!

We that invest in precious metals—we who have withdrawn parts of our retirement accounts, or dedicated funds that we would have spent on consumer frivolities—we did not follow the rules. We have been critical thinkers, considering the reasons for our economic woes, concluding that the economy is not reparable under the current system.

Believing this now, we have taken action, investing in commodities that will survive an inevitable collapse so that we might be able to rebuild our lives in a new economy. But we did not follow the rules -- we did not spend more and go deeper in debt while our savings were tucked away on Wall Street in IRA accounts. So we have been “yellow-trucked!”

Bachelor of Science in Truth Studies

The good etymologists at OED help us to know ourselves: A conspiracy theory is 1) an explanatory proposition that 2) accuses two or more persons, a group, or an organization of having caused or covered up, 3) through secret planning and deliberate action, 4) an illegal or harmful event or situation.

I find this definition interesting because it aptly describes an historian, economist, or political scientist who proposes, in an academic journal, a theory that explains how a group or organization might cause or cover up, through secret planning and deliberate action, an illegal or harmful event or situation. We professors submit articles like this all the time. Isn’t that worth studying and debating?

Frankly, the term is a propaganda meme used to discredit anyone, anywhere, in quick blunt fashion.

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