All posts by tegory

The Turkey Gold Rush

ISTANBUL, July 4 (Reuters) – For centuries, Turks have flocked to the jewelry shops of Istanbul’s labyrinthine Grand Bazaar to trade their gold – ornaments handed down through their families over generations, or bars stashed under mattresses as savings. But in recent months the shops have a new and unexpected competitor: banks.
The country’s commercial banks are pouring their technical expertise and marketing resources into offering their customers gold deposit accounts. Customers hand their gold to a bank and can make withdrawals from their accounts in gold bars or the lira currency; the accounts offer interest rates that are substantially lower than those on normal time deposits.
Gold deposit accounts have been growing around the world, but Turkey’s boom has made it a leader in the trend. 

Why Turkey Jumped from 20th to #7

In terms of the data overall, among 163 countries Turkey was ranked seventh-best for expats, after Switzerland, Singapore, Canada, Spain, New Zealand, and Australia.

The European Union wouldn’t let Turkey in ‘elhamdulillah’ meaning we ruled out Euro Greek Cyprus for the cheap seats in Turkish Lira Antalya. Until 2018 a dollar would buy 7/8ths of a Euro or 3.67 Liras,

Cyprus Tomato (1 lb) 0.84 € = $0.93 Antalya Tomato (1 lb) 2.00 TL = $0.34

That 44% currency devaluation has brought investors from Europe, Russia and Mideast to own more than half of the real estate in Antalya. However, the coming financial Apocalypse has encouraged the locals as well as resident expats open gold bank accounts.

Travailing to Houston

Abundio saves me once again.

Goat Farmer‘ Meetup

Currently billing my 3rd Life: ‘Fortuneteller’ upgraded on LinkedIn as a Astro-Psychometrician – A psychometrician is someone who practices the science of educational and psychological measurement, or in other words, testing. An Astro-Psychometrician is a 1st Life Architect- 2nd Life Goat Farmer who asks you: When’s Your Birthday?

Travailing to Houston with an expired driver’s license and without Jane Marie, meant I had to find a way to get from George Bush to Wharton. A 78 mile 1hr 23min one way taxi ride in Turkey might cost $50 versus $250 in America. MaryKarmen and Abundio the entire workforce of the Anala Goat Company, now living in Inez, saved me both ways, and better yet, hosting me at the best Mexican restaurant in Wharton.

MaryKarmen Lopez Loredo with Abundio and Abundito (Diego) Loredo

The Loredo family and I share Expat status. After I flashed my Turkish Green Card (Kimlik), I inquired if they were still waiting for adoption by their 18 year old daughter? Claro que si!

Diego now 14 tells me in non-denominational Tejano English that he goes to a ‘white’ kids school in the little town of Vanderbilt, TX, plays on the football team and loves to fish.

Abundio gave up goats for hourly game warden duty on a deer ranch, where he camps out at night to shoot coyotes with his night vision rife. Getting paid for hunting sounds a lot better than milking fifty goats and three cows.

The Dollar Milkshake Theory

Brent Johnson is a member of the Real Vision Finance guru cabal. Real Vision was started in 2014 by Raoul Pal (Argentinian). Grant Williams and Kyle Bass (all things China) are two other ‘don’t miss’ informants.

No sooner had I submitted this analysis than President Erdoğan of Turkey made the following remarks in response to a currency crisis in his country: “Those who keep dollar or euro currency under their mattresses should come and turn them into liras or gold.”  Jim Rickards 

First day back home I went to see my July 2nd HSBC Turkish banker. The last time I had a face to face conversation with an American banker was with Tommy Schilling at our weekly Follett Lions club luncheons, catered by Grandpa’s quick stop.

I have spent November and 3/4 ths of December telling everybody on two cruise ships, as well as friends & family in Houston, Monterey, Sonoma and Iowa City, that Turkey is the only country in the world with Gold bank accounts.

Ms July 2nd advised me that now was a good time to buy dollars with gold since $$ were going up against the Lira. Last year, her HSBC Istanbul HQ currency account transfer tip garnered $145 on the swap.

The Federal Reserve along with the other Central Banks have created a giant Fiat currency milk shake. The United States uses the straw to return the contents home in dollars.

You can play the FX market in Euros, Pounds, Dollars, Danish Krone, Gold or whatever fiat currency you want in your account. However, I used Toastmasters Speech 8: Get Comfortable with Visual Aids to share with Ms July 2nd “The Dollar MilkShake Theory.”

Travailing to Iowa

Rabbit Ears Pass. The summit has the shape of rabbit ears, which displays two large columns of basalt rock formations from the second volcanic episode. 

… With an elevation of just over 9,400 feet, Rabbit Ears Pass is lower than many other mountain passes in the area, but it is still inundated with heavy snowstorms during the winter, making avalanches, icy roads, and low visibility all too common.

Auto Bound Therapy

The week before Thanksgiving until the first business day in January was my emotional demilitarized zone. Since 2008, first in Mainland China and the last four years in Antalya. Turkey, I had avoided crossing the Happy Holidays DMZ.

The Karmic gods finally caught up with me when Jane Marie and I were reunited with her ex and their oldest daughter, with the mission of driving the daughter-father gifted car from Santa Rosa California to Iowa City, Iowa.

To add spice to the journey there was to be a stopover in Salt Lake City to break bread with the ex’s son from an previous marriage.

The Siri GPS experience worked well all the way to Salt Lake and back on our I-80 East route to our next stop Sidney, Nebraska, except when Siri suggested an alternate route via Baggs, WY. A turn left at Howard Street led to a road closed November-May blockage and asking the Baggs-lady what do we do now?

Best Baggs advice: go straight to Craig, take Hwy 40 to Steamboat Springs then over the Rabbit Ears Pass to rejoin our I 80 East route at Laramie..

Jane “The Caretaker” doged the deer to Craig, turned north to Steamboat in time to catch the night skiers and then passed the Siri baton to Willie “The Loner” for the Rabbit Ears Pass Challenge. As the recently gifted owner of the car – a 7th of August Leo SIX of Diamonds, the Card of “Financial Responsibility” and the only even numbered card of our auto bound therapy threesome, Willie “The Loner” got the call.

Even numbers do better in the mundane world, odd numbers weigh-in matters of the spiritual realm. Jane and I, both JACKS (the eleventh card), as well as definitely odd, prayed for Willie.

The Christie Peak Express high-speed chairlift whisks you to top of Christie Peak (8000′) to embark on your night adventure across 5 trails.

Willie proceeded with caution but ever upward – Steamboat Springs at 6,732′ already had enough snow to ski but neither Siri nor the locals knew what lie ahead. Not too worry, Willie took care of the ‘NOW’ and within an hour we were over the top and our way to Walden.

Rabbit Ears Pass in the daylight I’m sure would be beautiful but even a half moon night scape was a slow yet scary trip.

Willie, energized by passing the pass with flying colors, was eager to continue on to Ft. Collins for a hookup with I- 80 but for the grace of Walden, we were destined to spend the night..

The Town of Walden is a Statutory Town that is the county seat of, and the only incorporated municipality in Jackson CountyColorado, United States.[7] It is situated in the center of a large open valley called North Park. People from Walden and the surrounding area refer to themselves as “North Parkers”. 

There were four options on Main Street in downtown Walden. Jane Marie turned down the first three b/c of the $75 room charge. I, “The Avoider” got the 4th and last chance to get off the road. The clerk was not in a negation mood b/c the motels close down from Thanksgiving until May and he was leaving in the morning for Florida.

The Walden population was 734 at the 2000 census and reduced to 608 at the[8]2010 census. The town sits at an elevation of 8099 feet (2469 meters) and is the only still incorporated town in the county. It was established in 1889 and was incorporated 2 December 1890.[3] Mark A. Walden, an early postmaster, gave the community his name

My Corps logo USAA credit card got me a 20% discount as the Millennial ‘Jarhead’ showed me this triple triangle tattoo representing the 37 brothers he lost in his tour of Afghanistan and participation in the documentary Combat Obscura.

Just out of high school, at the age of 18, Miles Lagoze enlisted in the Marine Corps. He was deployed to Afghanistan where he served as Combat Camera — his unit’s official videographer, tasked with shooting and editing footage for the Corps’ recruiting purposes and historical initiatives. But upon discharging, Lagoze took all the footage he and his fellow cameramen shot, and he assembled quite simply the very documentary the Corps does not want you to see. COMBAT OBSCURA is a groundbreaking look at the daily life of Marines in a war zone as told by the soldiers themselves. More than a mere compilation of violence, the edit ingeniously repurposes the original footage to reveal the intensity and paradoxes of an ambiguous war from an unvarnished perspective.
The Bad news: “The Caretaker” and “The Loner” didn’t think the Walden accommodations merited even one star. The Good news: once back on I-80 East at Laramie, they almost forgave me.

Contango or Backwardation

Contango sounds a lot better than Backwardation and when it comes to MONEY it is!

The threat of permanent gold backwardation is one that, in my view, casts a dark shadow on the future of our civilization much the same way as the disappearance of gold from commerce cast one in 476 A.D., the year when the Western half of the Roman Empire collapsed, world trade succumbed to barter, law and order broke down, and centuries of Dark Age descended upon Western Europe.

“MY CRUSADE TO FEND OFF PERMANENT GOLD BACKWARDATION” by Professor Antal Fekete:

The Chicago Mercantile Exchange (CME) (or “the Merc“)

Contango and backwardation are terms used to define the structure of the forward curve. When a market is in contango, the forward price of a futures contract is higher than the spot price. Conversely, when a market is in backwardation, the forward price of the futures contract is lower than the spot price.

The July farmer expects to harvest 100 bushels of wheat in October, the current or spot price is $5 but the future October price is $7 – that’s Contango. There is a drought, the expected supply shrinks, the spot price is now $8 while November December futures are back to $6 or $5 – that’s Backwardation, the demand for the existing supply let’s the farmer take the $8 and tear up his contract (hedge) for the $7.

All physical commodities work this way you either have the pigs or you don’t: OCT 19 Hogs are at $66.525, up $3.000, DEC 19 Hogs are at $66.225, up $2.850 FEB 19 Hogs are at $74.175, up $2.750 — provided by Brugler Marketing & Management

Gold futures trading has only a brief history of about forty years. It was totally unknown under the gold standard. It started in the early 1970’s at the Winnipeg Commodity Exchange in Canada, when the ban on Americans to own and trade monetary gold was still in force. In 1975 the ban was lifted and trading gold futures shifted to COMEX in New York.

One ounce of gold in 1920 cost $260. Running that through the CPI calculator says it should be $3,456 for that same ounce. I got married in 1973 and the gold bands cost $90/oz for a CPI adjusted value of $512 compared to today’s spot price of $1,544. The last time gold was in the 500’s was 2006, ipso facto the CPI only keeps score, on the low side at that, for the USD, not real money.

When De Gaulle called up Tricky Dick in 1971 and asked for his gold to pay for all that French wine that LBJ & Nixon had purchased to celebrate the ‘Great Society’ and evacuation of ‘Nam,’ Dick stiffed the frogs. Closing the gold window opened the door of the Winnipeg Commodity Exchange and the FOREX casino.

At the tender age of 65 I taught ESL in Zhengzhou, Mainland China for $25/hr paid monthly in Yuan or Chinese Renminbi. Here Wikipedia sucks-up to the PBOC: ” The renminbi is the official currency of the People’s Republic of China, and one of the world’s major reserve currencies.

When we were on the gold standard there wasn’t a whole lot of trading going on but the COMEX and FOREX brought Las Vegas to Wall Street with a version of Keno called trading pairs : EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The CNY renminbi is not there because it is a blocked currency or as Trump claims ‘manipulated.’

The big comeuppance in the threat of permanent gold backwardation is the money printing majors and the manipulators are never going to dance the Contango again. The USD and the Federal Reserve have lost their reason for being. Yes, the dollar is still the best of the fiat ‘monopoly‘ money but it takes more and more Federal Reserve notes to buy the same amount of real money, Gold.

The haves, have gold, real estate and no debt; the have-not’s, have no gold, no paid-off real estate, lots of debt and hardly even any ‘monopoly’ money.

Cash Crops = Individual Sovereignty

We got our alfalfa to feed our dairy goats from a farmer in Wharton. He also raised corn, soy and sometimes cotton but alfalfa was his favorite crop. Why? “It’s a cash crop, no government meddling. People pay me the market price in cash.”

“The only time the American farmer made money was from the end of the Civil War to WWI.”

“If we went back on the gold standard and we adhered to the actual structure of the gold standard as it existed prior to 1913, we’d be fine.  Remember that the period 1870 to 1913 was one of the most aggressive periods economically that we’ve had in the United States, and that was a golden period of the gold standard.  Between 1870 and 1912, a period of forty-two years, industrial production in the United States rose by 682%.

The United States actually did not return to a gold standard until 1879. However, by 1870, most of the rubble of the Civil War, including the floating “greenback” dollar, had been cleared up. However, the American farmer no longer had to compete with slavery and started receiving ‘hard currency’ for his production.

Cash Crops Mean Farmer Sovereignty

Those delicious alfalfa squares now go for $10-14. According to the CPI calculator they should cost $7.60 each. Gold in 2000 cost $302/oz and $1,522 today. My favorite economic calculator Goats: in 2000 we struggled to get $0.80/lb, when I departed in 2007 it was $1.25. Today at the New Holland, PA. auction $2.44

100 square bales: Here was the thought, on 50 acres you would get 100 square bales per acre, which is a conservative number. If we do the math, that works out to be. 100 bales x 50 acres = 5000 bales of hay for 50 acres of land.

How many large bales of hay can you get per acre? In general, you can get as much as 5 large rounded hays that have weigh 1000 lbs. each, per acre on average. Some farmers also give a rough estimate of 100 small bales of hay per acre. We paid $5/bale x 100 = $500/acre gross.

How much is an acre of hay worth? Equation: Estimated 4 tons per acre yield of 16% moisture hay at $200 per ton = $800 per acre value for all three cuttings; minus buyer’s cost of harvest and weather risk at $324 per acre assuming three cuttings (Table 1); equals the buyer’s maximum pay price: $476 per acre for three cuttings ($800 – $324 = $476). Jun 22, 2014
Europe prohibits GMO crops, cash crops are not GMO crops. This chart shows that Agriculture in all its nefarious forms accounts for 57% of US GDP. US Corn & Soy goes for animal feed while 40% of the Corn goes in the gas tank.

How much is a ton of hay cost? Keep in mind that grass hay bales are usually lighter than alfalfa. The Internet Hay Exchange lists average prices of $121 a ton for grass hay and $165 for alfalfa. Save money by buying in bulk, as in a semi-truckload, or buying bales still in the field. Dec 11, 2016

After the 1937 Dust Bowl FDR irrigated the prairie by sucking all the water out of the Ogallala Aquifer. FDR devalued Alan Greenspan’s 1870-1912 Gold by 40% ($400 to $675) to pay for it.

How Does the Farmer Regain Sovereignty?

How does the Farmer and Everyone else regain Individual Sovereignty?

I asked Iowa bred and raised Jane, what was a cash crop? “Corn and Soy.” No Hay. “OK I get it Tobacco, Marijuana, Avocados and Pineapple.” That’s it why Colorado is going great with Cannabis and Kentucky thrived until the US stopped smoking. That’s why Imperial Valley California is still Imperial, they grow stuff that People Eat.

How do we turn the Prairie States into an Organic California?

Plant Prairie Grass $500/acre subsidy

Raise 100% Grass Fed Beef

Raw Dairy Make Legal in all 50 States

Circle Urban Areas with Organic Truck Farms

Give Inhabitants Passport Equivalent Identity Cards

A May-September Romance

Akkaya Gardens

A sign along the road told us the villas nestling in the hill below were part of the Secret Valley complex and we’re presuming the area is called Akkaya. Beautiful river and mountain views – and you can’t help but wonder how long this place is going to be ‘secret’. We got back in the car and continued to follow the signs, down the hill towards the river and the restaurant.
We were greeted by lush greenery, ponds, streams, the sound of waterfall and the breeze rushing through the dense treetops. A friendly waiter greeted us and pointed us to the different seating areas.
A family from Samsun has been operating the Tree House Restaurant since 2012 from May to September.
A steep climb up the steps and we were soon in our very own stork nest, sat amongst the treetops, loving the seclusion. We couldn’t see or hear the other families enjoying their  Turkish Breakfast.
Friday nights are Turkish cuisine with entertainment.
This is the development at the top of hill.
118 meter two bed rooms, two baths, two balconies and therapeutic views.
East view with fire observatory on top and a one cylinder Mosque down below.

Egirdir Lake

Eğirdir is the name of a lake and of the town situated on the shore of that lake in Turkey. The lake lies in the Turkish Lakes Region and is 186 kilometers north of Antalya. With an area of 482 square kilometers it is the fourth largest lake in Turkey.

Jane Marie & Mehmet Pasha Do Lunch at the Vanilla

Mehmet (Pasha) Ates represents a five generational Silk Road enterprise in Antalya’s Old Town.
Mehmet Pasha, for those who don’t know, is the man to know in Antalya’s Old Town. Jane Marie and I met Mehmet shortly after we got off the boat back in 2015 at his carpet shop.
Every visitor friend soon ends up spending time getting a mini-seminar on kilim rugs.
The Vanilla restaurant is ‘the’ dining experience in Kaleiçi (Castle Gate) or Old Town in expat speak.
Jane Marie gave the curry-vegetable dish 5+ stars..
Vehbi Koç was a Turkish entrepreneur and philanthropist. He founded the Koç Group, one of Turkey’s largest groups of companies. During his lifetime he came to be one of Turkey’s wealthiest citizens.

Jane Marie got a sneak peek at the hotel that the Vehbi Koç family is building in Old Town. The glass floor entry covers the ruins of the previous city center when Alexander the Great came ashore in 333 BC.

Political Decentralization as a Road to Anarcho-Capitalism

We are all self-employed. We all migrate in search of a better life. We all used to move usually south, in the United States to open shop, no income tax states like Texas and Florida, then we got old and our social security check was not enough to live on in America. Off to Mexico, China to teach ESL or Vietnam – anywhere the cost of living was half of that in the US.
Now that 90% of the working age population has very limited prospects for financial, let alone meaningful employment, we are all decentralized entrepreneurs – looking for ways to make money on our own.

BOTH ENDS OF THE SILKROAD

Rule of Law, Accountability, Property Rights & Strong Government

Empires of the Silk Road, by Christopher I. Beckwith separates the history of civilization into trade by land over the Silk Road from the Bronze Age until Christopher Columbus sailed the ocean blue in 1492. After the Portuguese, Spanish, Dutch and English colonized the entire world. everything went by sea, and the Ottoman Empire ceased to be.

Xi’an Begins the Beguine

We spent 2008 to 2013 in Zhengzhou midway between Beijing and Xi’an (now famous for the terra cotta warriors) and Xi’an the Beguine was as far as we got. However, this video professionally tells the story.

Urumqi it must be

Urumqi is the air exit to Baku and beyond. The Turks get on the plane in Istanbul when we get off to go visit their families in Urumqi. We never got out of the airport concourse in China but we never wanted to leave the Baku one.