Tag Archives: finance

Considered Aluminum?

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In the current financial landscape, a persistent chorus of voices advocates for investing in precious metals, particularly gold and silver. This ubiquitous advice prompts a critical examination of the underlying motivations. When confronted with such recommendations, a natural skepticism emerges: What drives these persistent promoters? Their fervent marketing suggests an ulterior motive beyond altruistic financial guidance. The underlying suspicion is that these advocates are primarily interested in inflating the market value of their own gold holdings, strategically seeking to offload their assets at a premium price. Their aggressive marketing tactics raise questions about the true value and potential of these investments, inviting potential investors to look beyond the surface-level sales pitch and critically assess the genuine merit of precious metal investments.

Despite my initial uncertainty, rational thinking revealed the underlying mechanism. The true motivation isn’t simply selling gold, but profiting from the transaction itself. Each gold sale or purchase generates income for intermediaries, with earnings fluctuating based on transaction volume. Regardless of intent, every gold or silver exchange involves paying a commission to an agent, embedded within the process.

The prevalence of transaction fees is a common aspect of financial markets. When investing in stocks, investors typically pay brokerage commissions. Similarly, gold brokers have a vested interest in facilitating gold transactions, as their revenue depends on sales volume. Just as real estate agents earn a percentage from property sales, these intermediaries are motivated to encourage buying and selling activity within their respective markets.

Unlike real estate transactions, which occur frequently, purchasing gold as an investment is relatively uncommon. While many people eventually acquire gold jewelry, such as rings, they typically do so for personal adornment rather than financial strategy.

So, the other day, after drinking my Diet Pepsi, which I prefer over Diet Coke, I tossed the can in the trash. I stopped. I thought. “Just what was the value of that can?”

Realizing the cumulative cost of my soda habit, I quickly calculated that I’ve been casually discarding nearly two cents with each beverage. While the amount seems trivial, it represents a pattern of unnecessary waste. Over time, these small increments add up, revealing an inefficient approach to consuming a product I regularly enjoy.

In the 1970s, collecting aluminum cans became a popular trend among environmentally conscious individuals and those seeking to earn extra cash. However, as recycling became more mainstream and the economic incentive diminished, the practice gradually lost its appeal. Today, the once-enthusiastic can collectors have largely moved on, finding the time-consuming process of gathering, storing, and transporting cans less attractive, especially given the bulky nature of aluminum recyclables and the minimal financial return.

I am beginning to take another look at the idea. Every day, I drive right near a recycling place. If I can get close to what they said on the internet, it very well may be worth my while.

Recognizing the untapped potential of discarded aluminum cans, I’ve developed a strategic approach to resource conservation and potential financial gain. These lightweight metal containers, often overlooked, represent a promising investment opportunity. By carefully collecting and storing these cans, I’m transforming everyday waste into a speculative asset that could appreciate in value as global aluminum markets fluctuate.

I’ve already acquired these items directly, bypassing any broker fees. I’ve observed online that aluminum prices are rising significantly, potentially not as dramatically as gold, but since I’m purchasing it regardless….

The Amazing Undo Function

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As word processing software emerged for personal computers, developers introduced the revolutionary UNDO function, transforming how users interact with digital text. Now, with a simple keystroke, I can effortlessly correct any typing error, instantly erasing mistakes and maintaining the flow of my writing. This feature has become an indispensable tool for writers, editors, and professionals across various fields.

If only life were like that. Can you imagine if Trump could press a couple of pseudo buttons and Obama Care would go away? Another one of those sets of buttons, and the errors of Old Joe would be no more.

Even without that undo function, President Trump has made very large strides in undoing the fiasco of the open border. However, it will take decades to address many of the technical and emotional consequences. There is just no magic wand to wave that will make all the side problems generated, likely intentionally.

Of all that was done by Old Joe, the one that will be most difficult to reverse is the inflation. Think about it. If the prices all are lowered back, that would be deflationary. If through some means he managed to do it, it might even lead to a depression. In this case, the fix would be far worse than the problem.

The long-term solution is simple: provide good jobs by bringing exported jobs home, offer good, inexpensive energy sources, and stop giving jobs to those who do not belong here.

There are other tasks that need to be addressed as well. However, in every respect and at every point, the Democrats are doing all they can to obstruct progress. They are attempting to prevent low-cost fuel. They do everything possible to hinder the deportation of illegal immigrants. And, by the way, they are doing all they can to keep criminals lose on the streets. This certainly does not help the economy.

To be sure, any country that spends more than it receives in revenue will have inflation. It is the primary reason for inflation. It means somehow or some way, spending must be reduced. The best way to reduce spending, whether at home, in business, or in government, is to reduce waste. President Trump tried to do that. You remember the uproar that resulted? Yes. The Democrats didn’t like that either. Actually, there were a few Republicans who objected too. It would seem the desire for free money is bipartisan.

You want to decrease inflation, vote for decrease of waste.

The Keating Five

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I am sure that the Democrats would love for us all to forget this chapter in American history. I would hope that those of us that know, especially those of us that remember first hand will never let them forget it. Let us keep reminding them on a regular basis. We do not want this memory to fade away.

We should have learned some important lessons, and we ought not to forget them. First, heroes do not always make good senators. Second, just because a man is a good pilot does not automatically make him a good representative or senator. Third, it also does not insure their honesty or integrity.

John Glenn was a hero and an astronaut. John McCain was a notable figure from Vietnam. However, the two of them, along with Alan Cranston, Dennis DeConcini, and Donald Riegle, hatched a financial plot that rocked the financial fodations of the country to the point that we no longer have savings and loans. There is no doubt in my mind that they should have all gone to prison. The three non-heroes did, but not for long. My best guess is that they didn’t want to incarcerate a war hero and an astronaut. If it were all revealed, my guess is that none of them would have spent another day inn the Senate.

They interfered with investigations involving large savings and loan establishments, which eventually collapsed. Conveniently, Glenn and McCain were cleared and served no time. My money is on the fact that their hero status kept them out of prison. Well, there may have been some conversation and some bribery going on. That part we will never know. I can’t even hazard a good guess. However, I wouldn’t doubt for a minute that large sums of money exchanged hands.

The net result is that the Savings and Loans went the way of the dodo bird, which, for the most part forced us all to go to banks for doing all of our savings and receiving all of our loans. This was something of a windfall for the banks, especially since the savings and loan establishments were the primary compilation for the banks. When this all happened, I had to move my checking account from my savings and loan to a bank, which was not at all happy with. My S & L just went away. They never asked what I wanted. I don’t think they wanted to know.

And, the Keating five. Well I don’t think they cared either.

It would seem the feds just can’t resist the urge to get their mitts into the financial institutions and cause mismanagement every couple of decades. And it’s us that suffer. Those in government that mess things up never pay the costs.

Neither Glenn nor McCain did either.

The Fantastic 401k (and things like it)

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I don’t remember when I got my first 401k but it had to be a long time ago. So, maybe you can gain from what I learned. There are many things I learned from many different aspects. However, there are two things I need to say before I go into it.

First and foremost, it is quite plausible that you can benefit from the plans. Actually, both my wife and I have. However, it is in spite of the system rather than because of it.

Second, all expertise I have, or at least for the most part, is from the college of hard knocks. You just may benefit from it.

Now, the first and most important thing I need to say is that there are real possibilities of losses. I know. They do caution you about this before you sign on the dotted line. However, what they don’t tell you is that once you take out a 401k agreement, you have, in essence have agreed to help hold up the stock market.

Let me explain. Over the years, the stock market took nose dives and leveled off. Then it gradually started going back up. Why shouldn’t it go that way. People like me were underwriting the stock market. We kept our money in, which, as you can imagine, helped the stock market to hold it’s value.

It would appear that the feds have discovered a way to keep the market from crashing, the 401ks. In case you haven’t noticed, it works. Though the market has threatened, it has never crashed since the 401k. Aren’t we all having fun playing Atlas holding the financial world on our shoulders.

Now why is it that we are doing this? Is it out of the goodness of our heart? Of course not. We keep our money in the accounts for two reasons, which the gov was careful to put in there. First, there is a penalty, a substantial one, which they make sure we know about. It is about the same as a threat, you know.

However, if that is not enough, the IRS will take a chunk too. Naturally, the amount is dependent is on a number of things. What tax bracket you’re in, how much you withdraw, and how many tax dodges your accountant can come up with.

So. If you lose your job, then you lose your car, then you lose your house, you make sure to keep that money in the account to keep from paying the penalties. It’s okay. You can buy a good tent with what you get from your wife’s wedding ring.

Okay. I’m am painting an extreme picture. However, it is to get your attention. I just want to get through to you that once you put a dollar or two in the system, it can be difficult to get it out, no matter how much you need it. The Feds don’t really care how much Tiny Tim needs that expensive operation, you see.

They do want you to keep it in there. Imagine if you will, the stock market takes a dive. The next day, all those with 401ks pull their dollars out and the market collapses faster than the Trade Center Towers.

I know. A bad comparison. I realize it. However, I won’t apologize. It could have nearly the same results. May I remind you, people were throwing themselves from buildings in the great depression too.

The point is this, before you set up your 401k account, be aware as to what might happen. It will be difficult to get it back out… and you might want it back out.

Secondly, be aware that your money just might be going to finance things you really don’t like. For instance. you might be one of those who now has a bad taste in your mouth out of what Disney has been doing. For sure I do. And, right now, I have money behind that outfit and I don’t like it one bit. However, I can’t do a thing about it, that is, unless I am willing to take a big loss. Too bad for me. I should have thought about that before I put my money in the account. I cannot tie an instruction on my money, this dollar must not go to Disney.

Then too, a little over a year ago, I decided to buy a new electric car. I could have paid cash for it, if I took the money out of my account. However, the instant I did that, I would have had to make a big check out to Uncle Sam, specifically, to IRS. So, instead, I am paying 9% interest on the car loan for 8 years. Now isn’t that neat. I have all that money sitting there in an account and I can’t pay cash for a car.

They want you to keep your money in that 401k, don’t you know. (They) being the federal government.

Remember, I am not making suggestions. I am just letting you take advantage of my mistakes.

Real Inflation

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If this year, I go out and buy a pound of all purpose flour and it cost 20% more than last year, then there was simply a 20% inflation. However, the government does not do things that way. One thing I have found, the government likes to twist things. First, they don’t make comparisons of the same thing from one time to the next. I don’t know how all they do it and I don’t really care.

I don’t go by their announcements of inflation from one year to the next. This is my index. I go by visits to the store. Last year, each time I went to the store, it cost me about $125. Now, each visit cost me about $225. By my calculations, that is not quite 100%. However, my buying has changed. We used to eat steak once or twice a month. We haven’t bought steak at the meat counter once this year.

I used to dream about a nice New York cut. Now, when I get to the meat counter, I just go flying by. I don’t even look. My eyes don’t even go in that direction. We used to go to a steak house once or twice a year. Now, never. That part of inflation cannot be measured.

My best guess, since Old Joe took over, the real inflation has been about 100%, maybe a bit more. Of course it has been spread over four years. The hitch is that it is not 25% per year. At 25% per year, it is more that 100%. Moreover, most of the inflation was in the first year. As election year has approached, they have done as the can to cut down on inflation. What inflation there is, they hide from us.

I’m not even going to try to do the math, but you and I know the real inflation. You and I know that we are not only paying twice as much but we are also buying 15 or 20% less.

The last time the the government made a release about the inflation they said it was something around 2.5% or so. I can’t remember the exact amount. It doesn’t make a whole lot of difference anyway. They just put all the numbers into their little magic formula and come out with any number they want.

However, let’s say it is 2.5%. Four years ago that would not have meant as much as now. However, now it is 2.5% of twice the price. That makes it the equivalent of 5% for the 3 year period.

Besides the fact, they are not likely including as much. Moreover, I don’t think they like to include what we really like to buy. Truth be told, it was more like 3%, which is the equivalent of 6%.

How does it feel to not be able to trust what the government, which expects you to believe it all?

If it Were Only So Easy

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I must say I really like and respect Habitat for Humanity. It is one thing that Jimmy Carter ever did that was worth while. However, even this organization is careful. They require that those who are going to get the house take a real part in building the house. Houses are never just given to people so that they really appreciated them.

The great majority of homes provided are held onto by the original owner for ten or so years. However, not all can be foreseen and sometimes things didn’t work out.

There was one case I heard of over the news. A family helped to build a home and it was truly appreciated. Even so, the family lost the home in less than a year. They could not come up with the taxes required for the property tax. You see, when you build a house in NY,NY, you really need to make a lot of money to pay the property taxes, especially when it was a nice home as this one was.

And so it was NY, NY took the house and auctioned it off. Those who had been given the home was again homeless. It is more than a sad story, though it is that. It also has a lesson. You can’t fix the homeless problem just by building homes and giving them to the homeless. It doesn’t always work, especially if if it costs them nothing. They don’t appreciate it and in the long run, nothing is solved.

As I said, I do respect and appreciate what Habitat for Humanity does. However, even they will admit that it does not always work. Though they do screen those they give the homes to carefully, sometimes things do not work. For this I say it is a shame. In the case I cited, it was because of the government. However, there are a thousand things that can go wrong.

In fact, it did. Perhaps, if you were ten years old at the time, you remember. There was a time when the government provided loans to millions with no down payment to people who could not make the loan payments. Yeah. I remember it. Thousands, maybe millions of people defaulted on their loans. Many times it was on purpose.

People would apply for one of the give-away-loans, never intending to make more than 1 or 2 payments. They lived in the house, in essence free of charge. Then, eventually, the home was repossessed.

The people that lived in the home free for a year while frequently not maintaining it, then went their way. The bank that wrote the loans were stuck with the paper on the house and they were having a very difficult time recovering it.

Well. It was actually more complex than that. It won’t fit in a post. You wouldn’t want to read it and I’m not sure I could keep it accurate. The thing is, the mortgages were sold to other financial institutions and then they were sold again. After all, the loans were insured by the feds you see. They, in theory had value. I wrote checks to three different banks before I refinanced my home.

Then I wrote checks to two different banks on that loan. It is very common for a 30 year loan to be carried by 3 or 4 banks. It is a little frustrating. The bank that originally carried my loan was local. I could rush down to the bank the date the payment was due and give them a check. The other outfit was in Tupelo and I had to make sure to mail the check 5 or 6 days early or be in danger of a late charge.

Going back to the bank tragedy of which I was writing. As you can imagine, it went along swimmingly for a couple of years. Then, as usual, we tax payers had to come to the rescue and bail out all the financial institutions. The reason we had to bail them out, I don’t really understand. They said that if we didn’t, the banking institutions would collapse.

The point is this, Kamala can’t solve the homeless problem by throwing money at it. We tried it and ended up with an enormous banking institution disaster. It is one of the reasons that financial institutions usually require a sizable down payment.

People who have a large down payment in their house will work hard to keep it up and keep the payments up. It is considered a good investment by the bank and everyone wins. When the loan is not secured, it is a risk, not an investment. And it is quite possible the bank, the government, or most likely the tax payers end up paying for it.

It is also why Old Joe should have never let 20 million people in this country. They have their hands out for hand-outs and their only real loyalty is to themselves or the county they came from.

Just as with the people that walked away from homes they didn’t pay for, the illegal aliens will quickly leave this country should things start turning bad. It is the sort of thing that people try when they have no practical experience in running real things, like banks, like businesses, like restaurants. Kamala has her head in the clouds in the clouds when she says, we will fix it by throwing money at it. We will fix it by giving things away.

Those who go around with their heads in the clouds are doomed to fall and fail one day. Gravity will have its affect one day. Gravity always works. The real rules of economics will eventually work. The many man made rules will eventually be overtaken and the natural ones will prevail.

Something for nothing never works…not for long anyway.

Have You Noticed That Everything Is Costing More?

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It’s called inflation.

It is a way the government has of paying off today’s debts at tomorrows dollars. You see, tomorrow’s dollars, in a few decades will be worth maybe 10 or 15 % less than what they are worth now. At the way things are going, maybe 20 or 25% less.

That is nice and convenient for the government. Not so much for you and me. You see, those dollars will also be worth less for us. My little 401 k is now worth, oh, about 14% less than when I retired, this even though the DOW has basically gone up.

Each time I go to the grocery store, I have to pay more while I buy less. Even the grocer knows it and admits it. If I bring it up, he just shrugged. He can’t help it though he tries. He actually does absorb some of the inflation, which decreases his profit.

Now, let’s look at this thing called inflation a little. While Trump was in office, the inflation was almost negligible. When Old Joe stepped in behind the desk in the Oval Office, it was as if someone threw a switch. You see, the price of oil doubled or more. In case you are not aware, our nation is dependent on energy in general and oil specifically. It was but only natural for the price of all else to go up. It is inevitable. When Old Joe stopped the drilling, he caused the inflation. To be sure, there were other causes too. However, the cost of oil is the one major thing.

Incidentally, with inflation, the cost of running the government goes up too. That’s right. They have to buy stuff too. And they have to pay salaries too. Stuff and salaries have gone up, a lot since Old Joe took over. So he has to raise taxes to pay the extra costs. And, guess what, increases in taxes are also inflationary.

Government Paychecks

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I guess I was in high school when it first occurred to me about folks drawing paychecks directly from the government. Many more draw their pay indirectly from the government, such as working for companies deriving the majority of their income from the government.

Many will ask why it should make a difference. Others will suggest it is a good and honest way to make a living. I guess to some degree both are true. However, I like to consider it scaled down.

Consider, a town of 100. Would it be a good thing that 50 of them draw paychecks from the other 50? Is it a good thing that only 50 of them do productive work?

I am being extreme, of course in making my point. It just is that with the small numbers, it is easier to comprehend what happens when someone draws a government paycheck.

The fact is, big government is expensive. Extremely big government is extremely expensive.

I look around and what I see, is extremely big government. To some, it might not seem so but we must remember, every person deriving a paycheck from the government means more taxes. That is to say, the others of us must provide for them, food, shelter, and so forth.

Certainly, some things must be done by governments. Consider The Department of Education. It has 4400 employees and a budget of 68 billion. Why? How many of them stand in a classroom and teaches… or makes a measurable contribution. I truly suspect that if the entire department went away, hardly anyone would notice. Well the National Education Association to be sure. The two of them are joined at the hip.

The thing is, it doesn’t stop there. There is no telling how many people work in each state for some kind of education department. Let’s multiply that by 50 fifty and we’re talking a bunch of people.

Then each county and each major city has their education system. At this point we are likely talking a bunch of folks who make their living educating our children and none enters a classroom.

Actually The Department of Education is a relatively small department. At every level, city, county, state and federal governments we have, law enforcement, courts and lawyers, again multiplied by fifty.

As an aside, what physical product do the lobbyists produce? Oh. That’s right, none. They’re in essence a bunch of parasites making a fortune in bribery. Going back to our little 100 person community, just what purpose would they have there?

Yet, if we ask every government employee at every level to justify his job, they would all be ready with an answer. Well, almost all of them.

Money, Money, Money

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Off and on, I’ve been following hearings on antisemitic speach and activities on our colleges. I have found the college leadership horrid in this respect; or maybe I should say it is without respect.

Then, or should I say now we see, there is an altogether different nature of respect, although it is one of the oldest. It seems once people and governments begin the threat of withholding fortunes, attitudes change. Indeed, resignations are submitted. Apologies, begrudgingly come forth.

Why should I bring this to mind? For what purpose do I write these few words. To be sure, what prompts me to raise this to the world’s attention?

As usual, it seems as if, if you really want the colleges and universities to behave themselves, it’s a simple matter of talking money, or should I suggest you withhold your dollars. You and I both know even the threat of loss of dollars speaks volumes.

Well, they have no fear of me withholding my fortune. I have none. Still, I do what little I can. Hopefully others will too. Antisemitic activities should not be tolerated in any of our colleges, certainly not those receiving our tax dollars.

Finally, antisemitism ought not be tolerated in this country. If we can tolerate those whose nationality has done what they can do, to the point of building destruction and murder of lives, then we ought to tolerate a race that has been nothing but peaceful and beneficial to our nation and our economy.

Don’t you think?