Category Archives: MONEY

Money – the Universal Religion

ENTREPRENEURISM

An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

Only 3% of the population in every nation on earth has enough money to qualify as an Elite. One third of that 3% were born Financially Independent, one third got there by hook or crook and the last third almost made it but needs government assistance to retire. That leaves 97% of the world’s people to fend for themselves.

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Marx The Communist Manifesto – Bourgeoisie 3% and Proletariat 97%

In Marxist theory, the proletariat is the social class that does not have ownership of the means of production and whose only means of subsistence is to sell their labor power for a wage or salary. 

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In Marxist theory, the bourgeoisie directly or indirectly control productive property: They might own factories, mills, workshops, or other businesses; they might own the land such business are built on, or own services (like railroads or power grids) that such businesses depend on; they might be shareholders in companies that own such things, or own banks or lending institutions that such businesses are indebted to. The bourgeoisie are anyone who can take control of some productive capacity and leverage that control to make a profit for themselves.

Smith’s Proletariat & Bourgeoisie

Smith states, explicitly and repeatedly, that the true measure of a nation’s wealth is not the size of its king’s treasury or the holdings of an affluent few but rather the wages of “the laboring poor.” In a passage that Obama quoted in his speech, Smith declares that it is a matter of simple “equity” that “they who feed, clothe, and lodge the whole body of the people, should have such a share of the produce of their own labor as to be themselves tolerably well fed, clothed, and lodged.”

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Adam Smith’s three natural laws of economics? the law of selfinterest—People work for their own good. the law of competition—Competition forces people to make a better product. lowest possible price to meet demand in a market economy.

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Adam Smith “All money is a matter of belief. It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. The real tragedy of the poor is the poverty of their aspirations.”

Welcome to the Age of Entrepreneurism

7 Characteristics of Successful Entrepreneurs

  • Self-Motivation. One of the most important traits of entrepreneurs is self-motivation. …
  • Understand What You Offer. As an entrepreneur, you need to know what you offer, and how it fits into the market. …
  • Take Risks. …
  • Know How to Network. …
  • Basic Money Management Skills and Knowledge. …
  • Flexibility. …
  • Passion.
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Entrepreneur Gallery

The February 24th DESIRE for MONEY and LOVE Card

ACE of Diamonds: Ambition is the key word for this card, and usually in form of cold, hard, cash. Contacts are very important to the Ace of Diamonds. They like secrecy in connection with their associations; both business and personal. The Ace of Diamonds can be incredibly charismatic, able to focus their magnetism to achieve success.  http://www.metasymbology.com/

Open Loop Limbic System

Jeff Bezos

The January 12th FRIENDSHIP Card

How’s That Savings Account Doing?

My 60 year Boomer Bank account currently pays 0.15% APY on balances of $10,000 or more. Even if I switched to American Express at 1.7% I come up short.

The Individual Sovereignty Solution

The annual inflation rate for the United States is 2.1% for the 12 months ended November 2019, compared to 1.8% previously, according to U.S. Labor Department data published December 11, 2019.

The Doug Casey’s prophecy on the Phil Donahue Show 1980/1981

In 1980 Gold was $594.90 ; 1981 $400; the Dow Jones around 3,000; bank interest rate in 1970 7% after Nixon closed the Gold window August 1971 bank savings account interest rate jumped to 12% in 1980.

Doug Casey the ACE of Spades: The Card of AMBITION now 73 and living in Estancia de Cafayate in Salta ProvinceArgentina.[3 goes by the moniker “International Man” and continues to practice what he preached on the 1981 Phil Donahue Show. Here he talks about the financial path to Individual Sovereignty.

After four years of living here, I like Antalya, Turkey

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.

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,

Market in the upper town, Paphos, Cyprus Cyprus Tomato (1 lb) 0.84 € = $0.93 Antalya Tomato (1 lb) 2.00 TL = $0.34

Europeans are flocking to Turkey not just for the cheapest tomatoes in the Eastern Mediterranean.

The Gold Denominator

Turkey’s 2018 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 to open gold bank accounts.

According to Jim Rickards, Turkey is the only country in the world to offer gold deposit accounts. Example: TRY- USD- GBP- EUR and XAU act like your standard bank account, only in multiple currencies, including Gold.

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.

The BIS (Bank for International Settlements) in October 2018 declared XAU Gold an accepted world currency. The BIS, the banks bank, financed both sides in WWII just to be fair.


Gold deposit accounts have been growing around the world, but Turkey’s boom has made it a leader in the trend. 

Global Currency Debasement

The chart is turned upside down because as the price of Gold goes up the purchasing power of the effective currency goes down. The AUD ‘Aussies’lost least while the Rupee and USD folks were the ‘bigly’ biggest losers.

The Expat Conundrum

The AGHOA in Dalaman, Turkey was established at 70 GBP/mth dues but the natives and YB’s (yabanci) residents pay in TRY lira. The brouhaha how to set the lira rate each fiscal year?

Currency Thermometer

We have no problem with Centigrade or Fahrenheit as a measure of the temperature. Real money is calculated in the price of gold in ounces or grams.

The Brits think in GBP, as Yanks we compare TRY purchases in terms of USD, the Turks check the exchange rate of the TRY versus the USD 1st and XAU 2nd.
The Gold temperature in Akkaya Gardens on 23 September was 473 TRY, 47 GBP, 60 USD, or 52 EUR.

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.”

Be Your Own Central Banker Come to Turkey

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. photo Michelle Ross/Jane Kennedy

Gold is big business in Turkey, for cultural reasons and also because of the country’s experience with bouts of high inflation over the past century. The metal is traditionally given as a gift at weddings and circumcision ceremonies. Turkey’s gold demand, ranks as fifth in the world for jewelry and eighth for retail investment, mostly behind countries with much bigger populations such as India, China and the United States.


Turkey’s favorite Ottoman Empire Gold coin 1255 model Content: 0.2127 troy oz gold     1 Gram Gold Price = $42.50 USD  1 Ounce Gold Price = $1,321.88 USD

Turkey Gold 100 Kurush Coins are throwbacks to the glory days of the mighty Ottoman Empire. There was a several centuries long day an age where this ultimate Muslim superpower represented the single greatest empire in either Europe or the Middle East. At one point, it effectively stretched from North Central Africa through Libya and Egypt, most of the Middle East and Arabian Peninsula, Turkey, Jordan, Iraq, Greece, Cyprus, and the Balkans all the way up to the very gates of Vienna in Austria. Until the empire’s forced breakup for being on the wrong side of the fight in World War I, it still covered Turkey and much of the Middle East even in its terminal days as the so-called “sick old man of Europe.”

Reuters JULY 4, 2012: But in recent months the jewelry 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.

In Turkey you can have a bank account in Turkish lira, Euro‘s, USD dollars and Gold. On April 1st this year the Basel III established Gold as a risk free banking asset, even so, the only option for the Deplorables is stuffing their air-mattress with Gold coins.

Turkish Bank Account Options

LiraEuroUSDGold
20152788986118928.35gm 1 OZ
20163103971106228.35gm 1 OZ
201740631095115228.35gm 1 OZ
201849331092130328.35gm 1 OZ
2019LiraEuroUSDGold
Jan67871118128028.35gm 1 OZ
Feb68461151132128.35gm 1 OZ
Mar69621135128728.35gm 1 OZ
Apr72411131129228.35gm 1 OZ
May76581144128028.35gm 1 OZ
Jun76191167130528.35gm 1 OZ

When we moved here March 2015, we were required to open a bank account showing $6,000 on deposit, in order to receive our one year resident permit. We operated for 2015 with both dollar and Lira accounts. In 2016 I learned you could also open a Euro account, so why not! Then this year I heard from the Jim Rickards YouTube grapevine, that Turkey was the only country in the world with gold denominated bank accounts. We were living in Switzerland and didn’t know it.

Money is gold, and nothing else.” JP Morgan

So gold deposit accounts are measured in grams and how many grams you have is determined by what currency you exchange for the gold. The Turks pay in Lira while expats use their home country source of funds, Euro for the Europeans, British Pound for the Royals and Buck$ for us.

Don’t got no real estate, diamonds, Stocks & Bonds or T-Bills but we’ve got an ounce of gold in a Turkish bank account.

In our example every month our 28.35 gram = 1 ounce deposit, goes up or down based on the spot gold price $1280 January 2019 at are open. When February jumped to $1321, I patted myself on my wallet for having $41 more than when I started. However, March roared in at $1287/oz putting me up just $7 and by May, I was back to scratch at $1280.

I forgot the purpose, the reason for opening the gold account in the first place: “Money is gold, and nothing else,” euros, dollars, lira, pounds, yen, yuan etc. are not real money. Every country’s Central Bank is losing money, some more than others. In 2015 the Turks could buy an ounce of gold for only 2,788 lira, Euro countries 980 euros and Americans 1,189 dollars. So when I got my June 2019 statement $1,305 – $1,189 (2015) = $116 less purchasing power since 2015 or a negative 2.4 interest rate.

Got married in 1973, designed two gold, $90.oz, wedding bands. Those ninety buck rings in June 2019 are worth $1,305. Damn, where are those 46 year-old heirlooms now?

Look, There’s a White Guy on the Roof!

On a new homes sales interview in Amarillo, my prospective employer was driving  us through his subdivision, when I spotted this white guy working on the roof of a home under construction. In Houston, in my four years and 100+ sales of new homes, I never, ever saw a white guy on a roof. My fellow sales counselors were white, black and a lonely Puerto Rican. The construction managers were white college graduates with a sprinkling of blacks. The people who built the homes from the ground up were Mexican illegals working for legal Salvadorian/Mexican owners.  Immigration and Naturalization Service, the precursor to ICE would periodically raid a subdivision and scatter the entire workforce – I guess Amarillo was a sanctuary city for white construction workers.

I talked with a cement finisher who had been in Texas for over six years, still making only $5.00/hr. I bribed Abundio Laredo away from his 11 hours a day, six days and $500 a week  meat cutter job at the Chinese restaurant, to milk our cows and goats for $15.00/hr. And yes, there is no way to make an illegal, legal in the USA – “There is no controlling legal authority ….” – Al Gore

FREE THE MINIMUM WAGE SLAVES

Walmart employs an astounding 2.1 million people.  In the United States alone, the company employs 1.4 million people.  This is a staggering 1% of the U.S.’s 140 million working population.

Walmart, in other words, matters. Its payrolls, and its pay, move the needle. And right now, many people argue, Walmart is very much part of the problem.

The average Walmart “associate,” Wake Up Walmart reports, makes $11.75 an hour. That’s $20,744 per year. Those wages are slightly below the national average for retail employees, which is $12.04 an hour. They also produce annual earnings that, in a one-earner household, are below the $22,000 poverty line.

On the other hand, these wages are far above minimum wage of $7.25 an hour. They also aren’t THAT FAR below the national retail average (only 2.5% below). In a two-earner household, moreover, these wages would produce a household income of $40,000+, which, in some areas of the country, is comfortably middle-class.  Walmart offers benefits to some of its employees, as well as store discounts and profit-sharing plans.

Small businesses are Big business

Employees per establishment in the U.S. coffee and snack shops industry from 2002 to 2016 was 9.51There are roughly 130 million U.S. workers employed by small businesses.

  • Represent more than 99.7% of all employers
  • Employ half of all private-sector workers and 39% of workers in high-tech jobs
  • Provide 60% to 80% of the net new jobs annually
  • Pay 44.3% of total U.S. private payroll
  • Produce more than 50% of non-farm private gross domestic product, or a GDP of roughly $6 trillion
  • 3% are franchises

Source: SBA, “Small Business by the Numbers,” June 2004

Prior to 1950 eighty percent of the population was self-employed – down on the farm. Today 98% live in urban areas that employ 90 million in the service sector and only 12 million in manufacturing. Adam Smith divided the employment world into Farmers-Merchants-Manufacturers. Farmers were the most important because they were the only ones who produced more than they consumed – it’s the one, two, three baby analogy. If a nation’s birthrate falls below 2.3, without immigration they’ll eventually go out of business.

Farmers, as long as they take care of the soil, can make 3 babies (grow more foodstuffs than they consume) every year to infinity. Merchants (Service Sector) don’t make any babies and Manufacturers make orphans that can’t reproduce. So, Houston what we have here is a big, big problem.

Family business farming before 1950

Small businesses (really family businesses, Sam Walton might have had 9.51 employees in his Dime Store) have always represented 99.7% of all employers, only by the end of WWII 80% of them still lived in the country.  Worse yet, now the Merchants & Manufacturers have occupied rural America. In 1950 there were 12 million farmers, each raising an average of 200 pigs. Today there are 200 farmers each raising 2 million pigs.

THE CIVIL WAR WAS ABOUT SLAVE WAGES

Henry Ford gave everybody $5.00/day instead of the standard two-twenty-five, “so his employees could afford to buy a car.” WRONG! Ford didn’t raise wages so that his workers could afford his cars. What happened is that he hired and then lost some 52,000 workers a year in order to have a stable workforce of 14,000. This obviously had vast costs in trying to hire and then train all of these workers: as well as the costs when they walked off the assembly line disrupting production. The doubling of wages to $5 a day reduced those costs by more than the extra pay cost him. Which is why he did it. Ford had to hire 52,000 a year to keep 14,000 for a turnover of 370%. Retailers today range from 150-300% turnover. Each entry level new hire costs at least $2,000 to replace the dear departed. What really hurts is how much a May 25, 2014 five-dollar bill is worth today, $118.26 to be exact. Those poor turds were running in off the farm to get $14.72 an hour on the assembly line.

The biggest difference between workers in RTW and non-RTW states is the fact that workers in non-RTW states are more than twice as likely (2.4 times) to be in a union or protected by a union contract. Average hourly wages, the primary variable of interest, are 15.8 percent higher in non-RTW states ($23.93 in non-RTW states versus $20.66 in RTW states). Median wages are 16.6 percent higher in non-RTW states ($18.40 vs. $15.79).

COOL SLAVES

So, the rest of the wage story of America had the unions driving manufacturing from the rust belt to the sun belt. The three or four dollars an hour wage difference didn’t hold a candle to 15 cents an hour in Mexico and of course there was China. Which came first Wal-Mart or China. All recovering Yankees that weren’t nailed down moved to Atlanta, Houston & Dallas. After 2008 nobody but nobody could get a job for more than the $7.25/hr. MINIMUM and Wal-Mart became the employer of last resort.

DEFINITELY NOT COOL SLAVES

As a 14-month veteran of Richmond-Rosenberg’s Wal-Mart Tire, Lube, Express it takes a lot of humility and quasi-permanent damage to your self-esteem to work at Wal-Mart. I cannot list a single redeeming feature; on the contrary working at Wal-Mart is hazardous to your mental health.

THE SOLUTION

Legalize Immigration

There are 20 million plus, not 11 million, Abundio’s working for real slave wages because the slave labor supply to nationalized ratio is at least three times greater than when Lincoln ran the show. Build the Wall – issue federal photo ID cards – write the law

 Eliminate All Subsidies and Tariffs

New Zealand did it 20 years ago and agriculture thrived. Absolutely no adverse consequences, only innovation and the benefits of a healthier food supply.

Reset World Reserve Currency to Gold Standard

US trade deficits were flat until Tricky Dick pulled the plug on Gold. Our 1998, 80 cents a pound goats are now worth $2.50/lb. According to the CPI calculator 80 centavos in ’98 is worth $1.25 in 2018, giving the self-employed goat farmer a $1.25/lb wage increase or shall we say, profit.

Thinking Outside the Country

Thinking Outside the Country

My Backyard – Antalya, Turkey 2015 to Present

Where ever an American Expat or an expat from any country resides outside his home nation they instantly become street smart economists. I had never been west of Chicago until the US Marine Corps gave me a 12 month all expenses paid tour of Japan,  the Philippines, Hong Kong and Taiwan. Teg, we’re not in Cincy anymore and why don’t you find a job overseas, when you get out?

Edificio Bretagne 949 Avenida Higeninopolis, Sao Paulo, Brasil 1975 – 1978

The Lobby was the best & when the elevator broke the 16th floor was a long ways to go

Good idea, I followed my bliss, first to Brazil  where I tried to live an American lifestyle on a beer budget. However, Buenos Aires, Machu Picchu, boat trip down the Amazon were worth the stay.

Ismailia, Egypt rented villa one block from Suez canal 1985-86

My second opportunity to think outside the country was a short 13 month stay in Egypt  as a free-lancer (on-the-economy) begging for consultant crumbs from the US Agency for International Development. Got to visit all 45 agricultural research stations from Asawan to Alexandria, took sailing lessons on the Nile and the Aswan to Luxor Nile cruise. Got to see how the civilian side of the Federal government works or doesn’t.

Zhengzhou, China 2008 to 2014 ESL teacher

After 2008 I found out that I couldn’t afford to live my ‘bliss’ lifestyle any place in the US on Social Security and my dinky pension. I exercised my one marketable job skill – speaking English with an American accent – seven years in Mainland China.

Pontificating to our Kiwi friends, overlooking Bohai Bay, in Yantai, Shandong (home of Confucius) China. 2014 -2015

My good looking partner with her JD Law creds, became disenchanted with being a shill for Chinese ESL training schools so we began looking for greener, affordable pastures. India, Vietnam, the Philippines and Korea were ruled out in favor of Antalya, Turkey, San Diego weather at one third the US cost of living.

At the base of those mountains Alexander the Great wintered his boats in 333 BC

In China we lived on wages, now we live on my SSA monthly check and save 30% of that, if we avoid Euro-Dollar countries. When I bragged to a Bostonian lady that we paid $300 for a 3 bed 1.5 bath apartment one block from the Mediterranean, she was impressed. Due to the currency exchange rate of the USD/TRY  we started off at $327 in March 2014.  Today, the US/Turkey political relationship has knocked our rent back to $250.

It cost us $20,000 to move from China and establish residency in Turkey.

What if the coming global financial Armageddon puts my pension on the Venezuela payment plan? That’s the problem in not only My Backyard but in 98% of the neighborhoods in the world. There are articles of living in Portugal or Ecuador for 30 years on $200,000, but what if your $200K turns into Zimbabwe bucks overnight?

My Backyard Strategy: Stay in Antalya, rent don’t own, bank accounts in TRY, EUR and USD, 5-10% savings in Gold.

The Race to the Bottom of Maslow’s Pyramid

I know,  you know, We all know that this is not going to end well. I want to know how to survive the Apocalypse without buying gold or Bitcoin, investing in real estate or the stock market because those things require money. I know, you know and we all know that at least 80% of us don’t have any.

Doug Casey’s 1980 interview on Phil Donahue foretold what Americans should’ve done, but that was way back then, when I was dreaming about getting rich. Then, I read that only 2% of the population achieved Financial Independence the remaining 98 per cent were dependent on government support totally or in part. I was still struggling to be Debt Free, let alone assemble an investment income.

The Race to the Bottom of the Pyramid

Now, the Boomers are just hoping they can make it to 62, the X’ers worry about the robots taking over all the jobs at Wal-Mart, the employer of last resort, while the Millennials are plotting the ‘American Spring’ on their smart phones. Doug Casey espouses 1) developing marketable job skills 2) leaving the country 3) opening a bank account in Switzerland or Singapore.

  1. developing marketable job skills: find your genius, your uniqueness, your Dharma and become an entrepreneur 
  2. leaving the country: if you’re under 30 go to Africa, over 30 South America Argentina, maybe Chile or Columbia. 
  3. opening a bank account in Switzerland or Singapore:  the government knows where you keep the money.  

Personal Experience: Brazil ’75-’78 I’d go to Argentina; Egypt ’85-’86 revisited in 2015 and Ethiopia 2013, if I was 30 I’d  go to the interior nations e.g.  Zambia, Malawi, Congo. China ’08-’14 if under 55 with an American accent teach ESL; Antalya, Turkey ’14-present, the bestest, cheapest place in the world for retirees. Casey doesn’t like Europe for its prospects of WWIII. No Euro country is affordable including Cyprus. USA ’43-’08 Cincinnati, Cleveland, Atlanta, Scottsdale, Houston, Eugene; I’d try to figure a way to live in Savannah, get involved in the real food farm to market movement and Sub Chapter S or LLC myself.

I have always been a Live to Eat kinda guy and want to avoid the Eat to Live crowd at the bottom of the pyramid.