Thursday, August 22, 2019

THE DOLLAR AND ITS FUTURE.



 THE DOLLAR AND ITS FUTURE.

There are very few men I really admire for their wisdom.

Most of what I write on this blog is from my own pen. Today, I am quoting someone else. The reason is that I could not have said it better, and because I think the material is worth disseminating.

David Schectman is a Precious Metals Dealer. I do not have nor have I ever had any business dealings with him. Not because there is any problem with dealing with him. He is an honest businessman and is very well respected in his profession. I therefore recommend him. But I use other connections I prefer NOT to divulge. Instead I read his newsletter, because it is one of the best in the business. I want to make it clear I do not get any compensation for publishing this! Just saying!

You may find it interesting reading, assuming you are of an inquiring mind and are an intelligent human. If you are not, then don't bother to read this, it will only "upset" you!

From The Desk Of David Schectman
David's Commentary (In Blue):

I love my profession. It has provided me with a comfortable living for the last 36 years. It has profoundly changed my views on finance, government and the economy. My views of government, money, the press, politics and investing are so different from my peers that when I discuss any of those topics with them we seem to be speaking a different language. Although they may not say it, they think I am out there in left field. 

As I get older, it becomes more obvious that you can’t change people’s views, no matter how compelling and logical your argument is. That’s true whether the topic is religion, politics or economics. People, especially people our age, are set in their ways. No wonder there are so few people who share our views and so few who actually own gold or silver. 
Offer a stranger on the street the choice between a $10 bill and a gold coin and most will take the $10 bill. Most Americans have never seen a gold coin or a silver dollar. Not one in a hundred knows that gold and silver coins were our money for over 150 years. Typically if you ask people why they don’t own gold or silver the more educated of the bunch will reply, because they don’t pay interest, so what good are they? You can’t cash them in at a bank.

So if it is nearly impossible to convince non-gold owners that they should consider owning some, and there are so few people who actually own gold, whom do we sell it to? That is a troubling question. It ain’t the Millenials. 

I often write that we “preach to the choir.” The majority of the (intellectually) unwashed masses out there have no idea that they are losing their freedom, or the damage that the Federal Reserve and our government is doing to their currency and way of life. The press isn’t about to tell them the truth. Neither is our educational system. You don’t learn about gold in high school or college. 

So when will these clueless people finally figure it out? If at all, it will be after a massive price rise when everyone is talking about it and it is making headlines in the newspapers and magazines. I’ll sell them some of my gold coins for $5,000 or $10,000 an ounce.
Today was but another example of how things have changed. I had to look for my TSA number in order to avoid long check in lines at the MSP International airport before I leave on a flight. I had to set up an appointment with my primary care physician in order to book an appointment with a physical therapist to treat a pinched nerve in my neck. I wasted half a day dealing with the bureaucracy. These days, you have to go through a doctor to see a doctor. It’s crazy.

When I was in college I sold women’s shoes part time (Monday and Thursday evenings and on Saturdays and full time in the summer) and made enough to pay for my tuition, gas for my old car and the money I used to buy a few beers and a pizza on the weekend. On a good Saturday I could make $10 and that would last me a week. 

Now it costs me nearly $10 for a large latte and a McDonalds Sausage and Egg McMuffin. Filling up the gas tank costs between $50 and $75. How do people get by on $15 an hour minimum wage? They don’t. How do they get along on three or four times that amount? Very poorly. One option is – both husband and wife work. That’s fine, unless there are young children at home and who is left to watch them? Childcare costs more than the second income. 

Maybe Trump is right when he says, “Make America Great Again.” The emphasis on “Again.”

When I was in my 30s I easily supported my family on just my income. These days that is impossible for most Americans. I look at my pay stub and I am impressed. By my humble standards, I make a lot of money – but after they deduct FICA and Federal and State taxes, plus what I have to pay in local real estate taxes and Minnesota’s 6.875% sales tax and all the other hidden taxes I am lucky to keep one-third of what I gross. A big number becomes a lot smaller number in a hurry. 

Most Americans are aware that something isn’t right and they can’t understand why their dollar doesn’t go nearly as far as it used to, even though they seem to be making a decent living. Well, if they are fortunate enough to be reading our newsletter they will find out what has happened to their purchasing power.

Inflation: In the words of Alfred E. Neuman, “What, Me Worry?”

Most Americans do not worry about inflation. Why would they? The government’s bureau that reports on inflation, the BLS, says inflation is only running at a rate of 2% a year. That doesn’t sound so bad. At that rate, it would take 36 years for prices to double. Haa, ha, haa. What a joke. 

How many of your friends have ever heard of John Williams and his excellent Shadowstats newsletter? How many of them understand that the “real” inflation number is running at – not 2% but 6% or 10% depending on the way it is calculated?
That is a BIG difference. 2% inflation, compounded, cuts your buying power in half every 36 years . 6% inflation cuts your buying power in half in 12 years and at 10% inflation, it takes only 7.2 years.  Is your after-tax income rising that fast? Probably not, so every year you fall further and further behind. If you are not making a lot of money in the stock market you are in trouble.
And it is even worse for the Millennials. Only 38% of this group owns any stocks. How will they retire? They won’t.

How Much Do You Have To Set Aside To Retire (In Comfort)?

How can the average American ever retire with interest rates at 2% or 3% and falling. If a family were somehow able to scrimp and save a million dollars, they would only receive $20,000 to $30,000 a year - before taxes on a safe interest-bearing investment like a bond or CD. Can you retire on that amount? And how many Americans do you think have saved a million dollars? Sure, you can add another $20,000 from Social Security payments and that ups the number to around $50,000 or so but that is a life style without vacations, without new cars, and one that hopefully does not have to deal with expenses from a major illness. How many Americans can afford long-term care insurance? Not many.

You may be one of the fortunate few who are situated well above these numbers. Many of our readers probably are, but even we are getting squeezed and our dollars are not going nearly as far as they used to. I’m on my third Porsche Carrera in the last 10 years and the cost has risen by nearly $20,000 for the same car. What would the BLS have to say about that? They would say I can drive a Chevy. Both are cars, so the cost has not gone up at all. That’s what they do when they “adjust” inflation “hedonically.” The computing power of your Apple computer doubled so the fact that the price may have also doubled is deemed to be of no consequence. And if the price of steaks rises, then you will eat chicken. See, no inflation. What you get is deflation – deflation in your standard of living.

The What and the Why

That is the WHAT. But I like to talk about the WHY. Being in my industry has answered the “WHY” question. “WHY” our standard of living is shrinking before our eyes. And when you understand the “WHY” you understand why people buy gold and silver. 

Forget about what gold did today, or last week, or last month. Gold is not about “price and it is not about profit.” Gold is about being able to maintain buying power - over time. Please don’t accuse me of deliberately picking a time frame that is favorable to gold. Almost any time frame of a couple of decades or more would suffice. But I will use 1970 as a fair starting point for this discussion. Gold was the official backing of the dollar until 1971.

In 1970 I went to work for Target Corp. as an assistant buyer at a starting salary of $8,000 a year. A senior buyer at Target might make twice as much. Lou Kennedy, the toy buyer, told me, “My goal is to make $1,000 a year times my age.” In other words, when he was 25 he wanted to make $25,000 a year and when he was 40 he wanted to make $40,000 a year. That was a far-reaching goal in those days. It hardly seemed possible.

In the late 60s I built a lovely four bedroom colonial house in a new suburb for $32,000 and bought a new canary yellow Corvette convertible for $3,500. Then I moved up to a red Mercedes 280SL roadster for $9,000. (This was all pre-Target when I was making a lot more money.) An ounce of gold officially sold for $42.22, but you couldn’t legally buy it. It was illegal to own gold until 1975. In a few short years, gold exploded to $850 an ounce as inflation raged on – the result of the Viet Nam war and Lyndon Johnson’s social programs. In the 70s, rampant government did cause price inflation. These days, with trillion dollar plus annual deficits, they tell us debt doesn’t matter.

The “official” BLS rate of inflation since 1970 states it now takes about $6.50 to equal one 1970 dollar. So let’s revisit the prices I listed above and see if they are lying. Of course they are, but let’s check just for kicks.

My 1970 wage of $8,000 would be adjusted to $52,000. My house in the suburbs would be adjusted to $208,000. A new Corvette would now cost $22,750 and the Mercedes roadster would cost $58,500. I would estimate that my taxes have more than doubled, so you could calculate that in too, which would significantly reduce the net amount I had to pay for these things but whose counting?

The price of a house like the one I built in 1968 for $32,000 now runs around half a million (not $208,000). A new Corvette starts at $56,000 (not $22,750) and a Mercedes roadster comparable model to my 280SL world run $114,500 ( not $58,500). As my friend Backwoods Jack loves to say, “Confucius say Sum-ding-wong.” What’s wong is the CPI, which simply stated is a fraud.

Who Cares If Inflation Is Under Stated?

So who cares? It’s just a number right? Wrong. Our Social Security checks are indexed to the way-understated number. If inflation were officially acknowledged to be 6-10% guess what would happened to wages and guess how much interest the banks would have to pay you for your deposits? We are being lied to and screwed. And since gold is the Canary In The Mine Shaft, when its price rises too fast it signals inflation. Interest rates rise. Is it any wonder that the powers-that-be do everything they can to suppress the price? 
Let’s Price Things In Gold Ounces
O.K. how about another example, one that is more recent. In 2005 Susan and I took out a $1,100,000 mortgage on a house we built in a lovely part of Minneapolis. I had a choice to make. Should I pay cash for the house and not have a mortgage, or should I keep the money and let the bank do the financing? At the time, gold was $500 an ounce and between my physical gold holdings and mining shares I could have cashed them out and paid for the house. It would have taken 2,200 ounces of gold to cover the cost of the house. I chose not to sell my holdings and instead took out the mortgage. Was that a good decision? Today the 2,200 ounces of gold is worth $3.3 million. It turned out to be a very wise financial decision. 

The simple fact is – the government can’t print gold and the way things are headed with trillion dollar plus annual deficits,a $21 trillion dollar national debt, the debt ceiling recently eliminated; the amount of new money that needs to be created will accelerate inflation as far as the eye can see. I can see the 1970s all over again, especially if this administration gets us involved in another war in the Middle East. As inflation causes the dollar to lose purchasing power, the price of gold appears to rise, when in fact it does not – it just takes more dollars to buy the ounce of gold. Yes, gold does what it is supposed to, it preserves buying power over time. Most of my friends do not understand that and most of them do not own any gold. They think I am nuts. I think they are misguided. Only one of us is right.

It doesn’t matter whether you are Republican, Democrat or Independent; this should concern you. Take 5 minutes to watch.  You'll be glad you did. https://www.c-span.org/video/?c4808035/googles-election

Bill Murphy says it’s only a matter of time until the Cartel can no longer source enough physical gold to keep the price under wraps. What is unusual is that gold has rallied without much help from the dollar. There is a new buyer out there with deep pockets.


Posted
by
The Blogger 




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Sunday, August 18, 2019

DOJAH FOR PRESIDENT!

BLOGGER'S NOTE: The following is a PARODY where the author makes fun of "candidates" running for "president." There are so many running it is hard to keep track of them. Most are worthless individuals who have not ever done anything PRODUCTIVE in their lives and are just looking for an easy job where they sponge off the public treasury. Their plans and ideas have been tried before, and all are object failures. No matter who "wins," the same tired policies are in store. It has been that way our whole lives. Not everyone sees it, however! The "Epswine Scandal" should open the eyes of everyone to just how low, stupid and decadent most of our leaders are. Here we make fun of them all. Enjoy!


DOJAH FOR PRESIDENT!

You've seen all the candidates!

Now there is a new one who has thrown her hat, er, her PAW, in the ring! 

Dojah for President! 

She is the only Candidate with Presidential Looks! Take a gander at her character, her solid bearing, her no nonsense demeanor, her honest looks and the gleam in her eye!

Finally, here is a candidate to get excited about!

She says, "Of all the dogs running for president, I am tops! There is no one who can match me in looks and character! I have no blemishes on or in my past, no scandals to hang over my head, have not molested any people, have no tax returns to argue about, have not "colluded" with "Russia" or anybody else, and have an exemplary genealogy! I am a true "Heinz 57" flavor! Vote for me! If anybody messes with me, tries to bribe me, threaten me or get me to do something wrong, I'll BITE them!"

With a strong statement like that, what is there not to like about this remarkable candidate?! 

Even better yet is her PLATFORM which is something we can all get behind! Here it is:

1) Free Dog Biscuits for everyone!
2) Free Spaying and Neutering for all!
3) All dogs will be allowed to BARK anytime, anyplace, without exception!
4) All dogs will be allowed to poop where they wish, in parks, alleyways, sidewalks, on couches and on floors!
5) All dog owners will be required to wear shock collars at all times!
6) After the first 100 days of my administration, all dog owners will be required to pay reparation payments to all their dogs for DOG SLAVERY which has been going on for centuries!
7) All 1500 dog breeds will be a part of my administration and will be equal under the law!
8) All 57 1/2 dog genders will have a place in my administration!
9) All "TRANSLATED" dogs will be treated the same under my administration! I do not care how odd or queer they may be, there will be a place for all!
10) Under my administration, sniffing hair and body parts like one of the candidates does so well will become official policy. All dogs will be allowed to sniff and lick unconditionally!

11) I will soon announce my "running mate." "It" will likely be a cross between a Chihuahua and a Saint Bernard! My administration will be "all inclusive!"

12) Free Hats will be given away to supporters with the acronym MADGA emblazoned on it! That stands for Make all Dogs Great Again! 


What a powerful, no-nonsense candidate and what a powerful message. She is running on the DOGO-CRAP Party ticket and you can write her name in on the ballot! 

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This Parody was
conceived, written, 
photographed and posted
 by
Harald Hesstvedt Scharnhorst 








Monday, July 8, 2019

SPORTS WHINERS!



SPORTS WHINERS!

Sports whiners are disgusting!

Whatever happened to
"sportsmanship?"

Well, it went the way of the dodo bird!

Look at the fools that masquerade as models for our youth to emulate. By design, blacks are favored in most American professional sports leagues these days. Some individuals ARE excellent players, but too often their conduct both on and off the playing fields is lacking in grace, humility, appreciation and decency. 

When I was a young man, sports figures were expected to maintain a certain level of propriety and therefore often made good role models to "look up" to. Not today. I personally very seldom watch commercial sports because they are either  set-up, staged or in one way or another run as crooked operations. That first came a surprise to me when, as a youth, I was invited to my first baseball game. I wasn't unduly interested or excited, but what caught my young eye was a scandal that erupted soon afterwards about a team I had seen play. I have forgotten the details, but it left me with a lesson never forgotten! 

When I see ungrateful mongrels like this Kaper-character with the frizzy hairdo and his antics regarding the American flag, I am totally disgusted. I don't care if this rat is good at his game or not, he is a disgusting example of what sports has become. Worse yet is the media and the supporting fools who egg this turkey on. The more he disrespects, the more money the fools throw at him. Crime truly does pay! Recently he is in the news again for forcing one of his sponsors to drop a line of tennis shoes because the shoe has the old Betsy Ross American Flag on it. He is pushing the tired old narrative it is "racist." Well, isn't that what he is doing, pushing "racism?" If these people would look in the mirror they might soon see the wisdom of a saying made popular by Walt Kelly, the cartoonist who drew "Pogo" the comic strip: "We have met the enemy and he is US!"

If K-boy dislikes America so much, why doesn't he go to a land that he CAN respect?  Maybe he will learn his lesson the hard way like Eldridge Cleaver did years ago after dramatically leaving the US, and then begging to be allowed to come back, after he had lived somewhere else and discovered his mistake!

There is nothing wrong with disliking your leaders or criticizing politicians or anyone else. But to intentionally 
drop on the ground, step on, urinate on, burn or otherwise denigrate the flag of any country really is an act of war against that country. It is a form of treason. To refuse to sing the national anthem of any country one is a citizen of is not very nice either. To refuse to honor the anthem or the flag is an act of disrespect that is best not shown publicly. This man has never served in the armed forces of the US, but takes all that has been GIVEN to him without so much as a trifle of appreciation!

And now we have the US Female Soccer team doing the same thing. Instead of keeping sportsmanship on a high level, some of these girls drop the flag, intentionally or not, and use their position on the American team to slam their own President. They make fools of America in the process; not particularly classy. To top it off, they whine about not being paid the same as the mens soccer teams. Well, there are some reasons. First payment is based on income, and female soccer teams do not attract the same level of interest as the men do so you cannot expect the same rate of pay. It is generally accepted that women do NOT play as well as men for obvious reasons, so why watch a women's game when men's are more exciting? In 2017, the US National Women's Soccer Team was brutally beaten by boys under the age of fifteen! So why all the fuss? 

It's pure politics and agenda games and nothing more!


 This writer served in the US Army, quite honorably, thank you, and has the documentation to prove it. The details can be found in our book AN IMMIGRANT REMEMBERS. Ordering info is found elsewhere on this blog.

During my tenure in the Army, I served under TWO different presidents who were my Commanders-in-chief. I personally did not like either President John Fitzgerald Kennedy or Lyndon Baines Johnson for perfectly valid reasons. BUT, I never said a word publicly or even to my fellow soldiers at any time for the simple reason I was in the military because I needed to be, and because I refused to be a traitor. Kennedy was assassinated and his assassination created waves in the Military. Being a loyal soldier was paramount. We could sort out the details afterwards!

That's the difference between proper conduct and being a rogue bull in a china shop!

One more thing: In the military, the flags of all nations are treated like gold. When we raised the flags in the morning and retired them in the evening, they were all handed with loving care and never allowed to touch the ground. Our host country's flag was handled exactly the same.   
It's called RESPECT!


Retiring American and French Flags 
by US Army Personnel
at an American Base
(Saran, France)
 in 1963



Photograph and Text
by
Harald Hesstvedt Scharnhorst


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Thursday, July 4, 2019

INDEPENDENCE DAY!



INDEPENDENCE DAY!

It's Independence Day 2019!



America is still a young country, but in the last several hundred years, it has made an incredible mark on the world.


Our country was founded mostly by immigrants who came here from Europe and carved out of a wilderness a modern country that has been a beacon to the world.


Unfortunately, as with all things, there has to be a fly in the ointment. People today are not taught much American History and newcomers here have little understanding of what this country was/is all about.


Nevertheless, it is important to remember our past, because without it, our future is much clouded.


Written
by the Blogger

Photo Credits: 
Old Faithful Geyser, National Park Service. Flag and Rainbow Bridge National Monument by Inga Hesstvedt. Logging Photo with Mount Rainier by Thor Scharnhorst. Rest of scenes and Fireworks by Harald  Scharnhorst.
 


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Sunday, June 30, 2019

PUTIN, THE NATIONALIST?


PUTIN, THE NATIONALIST?


A New Day Dawns.

There are so many crazy things going on in our

 world these days. It seems that America is deeply

 involved in most of it. For quite some time, the 

Deep State, the government behind the 

government, keeps pushing America into another 

unnecessary, but likely to be a profitable, war. If

 the truth be known, America as we know it, has

 been involved in almost continual wars since the

 time of the Revolutionary War in the late 1700’s.

It has always been the same bunch. Some call it

 the Military Industrial Complex, some call it the 

Zionists and others have still other names for this

 gang of screwballs and thieves.



            Regardless, these people have no morals, no

 compass to guide them except the desire to steal

 more and more money and to exercise more and

 more control. They have no hesitation to use

 taxpayer moneys or money created out of thin air

 which is then added to the ever increasing

 National Debt. Recently, Syria was targeted.

 When that went nowhere, thanks to help from

 Putin’s Russian Federation, the "Deep State" tried

 to overthrow Maduro in Venezuela. When that

 didn't wash either, we are back to setting up Iran

 again! America has been messing in Iran at least

 as far back as the days of the election of

 Mosaddegh. He was ousted by the CIA and the

 Shah of Iran ruled for a while. There has not been

 a single time during my lifetime, when America

 has not been meddling in the affairs of state in

 Persia.




Donald Trump was NOT supposed to be elected.

 When he was, it sent the establishment in to a

 frenzy of shock. Since then, the prostitute press

 has delivered one smashing blow after another in

 an effort to destabilize anything that Trump says

 he is going to do. It's almost like he is paid to

 be the fall guy for everything that is wrong with

 the world. Women have come forward with the

 most improbable stories designed to smear any

 candidates for judge-ships Trump might establish.

 Then after it is all over, they admit it was a lie

 anyway. If you cannot win an argument by fair

 means, always scream “rape!” It will get the 

American press foaming at the mouth like rabid

 dogs and the show goes on!




Russian Federation head Vladimir Putin made

 some interesting and prophetic remarks to the 

world this week. He said that the quest for a “one-

world” type dictatorship is passe, that with the rise

 of true nationalism in the world, one world-ism is

 a dead duck whose time has clearly passed. He

 may very well be right. He also indicated that 

“multiculturalism” is something that is a

 complete failure. It is unusual to hear words like

 that from a world leader. Even though he sprung

 from the deep wells of the brutal KGB many 

years ago, there is little room for doubt that Putin

 is a nationalist, that is to say, for Russia First.

 That does not mean he does not want good

 relations or trade with the rest of the world. On

 the contrary, he does, but not on terms where

 Russia needs to play second fiddle to America or

 any other group or country. He has been pushing

 for strengthening Russia itself. One of the most

 clever things he has spearheaded is the Russian

 Central Bank's purchase of Gold in an effort to 

shore up the economic system (gold is no ones

 liability, it is pure money). His country is not the

 only one doing this, which spells solid points for

 such countries.



For the last two years or more that Trump has been

 in office, the Deep State” has been spreading the

 constant lie of Russian collusion in the Trump

 Election. If anyone has been colluding it would be

 the "Deep State" and all of its familiar groups

 like the CIA, the FBI, NSA...ad nausem. The 

degree to which Israel has meddled in American

 politics for the last 70 or so years is a real 

collusion factor, but American Jewish-owned 

newspapers never (or almost never) mention this.

 If anything, they are hung up on any legitimate

 criticism of anything “Jewish” as 

antisemitism." The trouble is, people are

 catching on; the name-calling game is not 

working like it once did.

 Interestingly enough, America is ALWAYS 

sticking its nose into OTHER countries 

elections! And, of course, the big Internet Giants 

are doing their best to stack the deck with regard

 to information by banning or shadow banning

 those whose commentary does not match that of

 the "DEEP STATE!"


In order to “prevent” the re-election of Trump,

 Internet moguls are normalizing censorship

 slowly but surely by kicking anyone off the stage

 who is a Trump supporter. Instead, they are

 embracing socialism as never before. Even after

 watching the disaster that was the old Soviet

 Union and more recently, the government of

 Venezuela, the socialist/communist ideology is

 pushed for all it is worth. The so-called

 Democratic Party Debates is a twenty three or

 more ring circus. As for Venezuela, Maduro 

claims the Israelis are behind several 

assassination attempts on his life. 

 

George Soros and non governmental

 organizations are shipping invaders into the US

 in huge numbers, calling them immigrants. They

 are illegals, pure and simple and bringing them

 into our land only guarantees more problems both

 physically and monetarily.



While Vladimir Putin calls a spade a spade 

by correctly interpreting the ills of the “New 

World Order” and “Multiculturalism,” the West 

is hell-bent on another war. It is most important to

 keep a cool head in all this and just say NO!



It's Time for the Sun to Set on The "New World Order!"




Written

 by

 Harald Hesstvedt Scharnhorst


with Photographs

by

 the Author






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