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Archive for June 23rd, 2009

An ingenious plan to pay all debts

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An Ingenious Plan to Pay All Debts
BY RICK ACKERMAN ON JUNE 22, 2009 12:01 AM GMT · 35 COMMENTS
With the U.S. sinking hopelessly into a black hole of debt, and households facing an avalanche of tax hikes that will at best postpone the nation’s day of bankruptcy, we are all hard-pressed at this point to see a way to a happy ending. Lo, along comes an anonymous e-mail that describes a way to solve everyone’s debt problems painlessly. If you think the plan can work, I would urge you to forward it to your congressmen. But if you see a fatal flaw in the logic, please drop by the Rick’s Picks forum to explain. The forum can be accessed by clicking on the word “Comments” under the headline on today’s commentary.  Here’s the magical plan to cure America’s”Accounts Receivable Crisis”:
“It is the month of August, on the shores of the Black Sea . It is raining, and the little town looks totally deserted. It is tough times, everybody is in debt, and everybody lives on credit.
”Suddenly, a rich tourist comes to town.
”He enters the only hotel, lays a 100-euro note on the reception counter, and goes to inspect the rooms upstairs in order to pick one.
”The hotel proprietor takes the 100-euro note and runs to pay his debt to the butcher.
”The butcher takes the 100-euro note and runs to pay what he owes the pig farmer.
”The pig farmer takes the 100-euro note and runs to pay his debt to his supplier of feed and fuel.
”The supplier of feed and fuel takes the 100-euro note and runs to pay his debt to the town’s prostitute that, in these hard times, proffered her ’services’ on credit.
”The prostitute take the 100-euro note and runs to the hotel to pay for the rooms she rented when she brought her clients there.
”The hotel proprietor then lays the 100-euro note back on the counter so that the rich tourist will not suspect anything.
”At that moment, the rich tourist comes down after inspecting the rooms, takes the 100-euro note off the desk, tucks it back into his wallet, and explains that he did not like any of the rooms. He then leaves town.
”No one earned a penny. However, the whole town is now without debt and looks to the future with great optimism.
”And that, ladies and gentlemen, is how the United States Government is doing business.”
Come to think of it, that is almost exactly the way Uncle Sam is handling the debt problem. Your comments are welcome at the forum.

by Rick Ackerman
Posted 22 June 2009

100euronoteWITH THE U.S, SINKING HOPELESSLY into a black hole of debt, and households facing an avalanche of tax hikes that will at best postpone the nation’s day of bankruptcy, we are all hard-pressed at this point to see a way to a happy ending. Lo, along comes an anonymous e-mail that describes a way to solve everyone’s debt problems painlessly. If you think the plan can work, I would urge you to forward it to your congressmen. Here’s the magical plan to cure America’s “Accounts Receivable Crisis”:

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Written by aurick

23/06/2009 at 10:59 pm

Posted in Banking, Financial

Tagged with ,

No gold, no bullets: now it’s personal

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No Gold, No Bullets: Now It’s Personal
By: John Rubino, Dollar Collapse

– Posted Monday, 22 June 2009
Facts have a different feel when they’re personal. And speaking personally,  evidence that Americans are seriously spooked is starting to pile up. In the past few months:

• While researching a magazine article on offshore investing I interviewed Erica Nolan, executive director of the Sovereign Society, a Florida-based consultancy. She noted that her client base is changing: “Historically, offshore solutions have been reserved for very high net worth individuals. But starting in about 2001 we started to see people in the ‘mid-tier millionaire’ stream — $1 million to $30 million net worth — saying ‘I’ve worked really hard, I don’t want to have my assets at risk.’ Most recently we’ve been seeing a big demand from Americans saying ‘I just want to put $100,000 or $500,000 offshore. I’m reporting it; it has nothing to do with taxes.’ It’s just asset safety at this point.”

• My father-in-law decided he wanted some gold, so I called a local coin store and asked Kevin, the shop’s owner, to find us some Krugerrands. He predicted a few weeks for delivery, which seemed reasonable given the chatter about tight supplies, so I placed an order and wrote a big check. That was three months ago, and the coins still aren’t in. I called Kevin the other day and found him both busy and frustrated. “I could make a million dollars this year if I could only get inventory,” he said. “This would be a career year.” He apologized for the long wait and said there were now only a few people ahead of us on the list.  

• I checked in with a friend, a business owner and semi-professional poker player just back from a Seattle gambling trip. But instead of talking poker or kids we toured his stash of freeze-dried food and his growing arsenal that includes a Dirty Harry-style 44 magnum pistol and a very cool black pump-action shotgun. This guy is well-educated, well-traveled, and well-off, and he’s preparing to blow away looters from his bedroom window. 

• My 11-year-old son Alex and I stopped by a local gun store. This is going to be a “skills acquisition” summer in which we learn to ride horses, handle guns, and change a bike flat (and when I finally learn to Salsa) so we had some general questions for Charles, the gun shop owner, about gun safety classes and which rifle is the best starter model. Charles said our selection was limited: It seems that there’s a run on ammo, and he can’t guarantee anything more than low-velocity 22 caliber bullets. When we got home I did a quick Google search for “bullet shortage” and sure enough, that market looks just like those for gold and silver coins, with demand swamping supply, long waiting lists, and panicky hoarding. 

It’s no secret, of course, that small-denomination bullion is hard to come by and gun sales are way up, but finding out first-hand that this stuff is unavailable brings home the reality of the situation, which is that the social mood is growing darker. On the surface everything looks normal; no one is protesting in the streets, the trash is getting picked up, and elections are as orderly as ever. But the market is quietly reallocating resources as individuals insure against a systemic breakdown. Hope those Krugerrands come soon.
BUY OFFSHORE GOLD AND SILVER AT GOLDMONEY
— Posted Monday, 22 June 2009 | Digg This Article | Source: GoldSeek.com

by John Rubino http://www.dollarcollapse.com
Posted Monday, 22 June 2009

FACTS HAVE A DIFFERENT FEEL when they’re personal. And speaking personally, evidence that Americans are seriously spooked is starting to pile up. In the past few months:

• While researching a magazine article on offshore investing I interviewed Erica Nolan, executive director of the Sovereign Society, a Florida-based consultancy. She noted that her client base is changing: “Historically, offshore solutions have been reserved for very high net worth individuals. But starting in about 2001 we started to see people in the ‘mid-tier millionaire’ stream – $1 million to $30 million net worth – saying ‘I’ve worked really hard, I don’t want to have my assets at risk.’ Most recently we’ve been seeing a big demand from Americans saying ‘I just want to put $100,000 or $500,000 offshore. I’m reporting it; it has nothing to do with taxes.’ It’s just asset safety at this point.”

• My father-in-law decided he wanted some gold, so I called a local coin store and asked Kevin, the shop’s owner, to find us some Krugerrands. He predicted a few weeks for delivery, which seemed reasonable given the chatter about tight supplies, so I placed an order and wrote a big check. That was three months ago, and the coins still aren’t in. I called Kevin the other day and found him both busy and frustrated. “I could make a million dollars this year if I could only get inventory,” he said. “This would be a career year.” He apologized for the long wait and said there were now only a few people ahead of us on the list.

Read the rest of this entry »