MONEY: The tomato soup standard of value

Monday, August 18, 2014

http://keywestlou.com/a-good-time-last-night

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Then to Publix. I bought nothing. Cost $51. How do families do it?

When I was in high school, I worked in what was then called a supermarket. The time 1949. Supermarkets then were not the huge stores of today. Not even close. One of my jobs was to stock the shelves. One of the items was Campbell Tomato Soup. Five cents a can. I noticed Publix was having a Campbell Tomato Soup sale. Four cans for $4.95. $1.24 a can.  Although more than 60 years later, still a major increase!

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I would suggest to you that the difference is not “a major increase”, but a way to recognize that the value of “a dollar” — whatever that is — has dropped from 0.05 to 1.24.

Some economists — mostly from the Von Mise’s “Austrian School” — have asserted — I believe correctly — that the dollar has lost anywhere from 99.9% to 90% of its value depending on the interval you choose to measure.

In your specific example, it’s 95%!

Argh!

It’s about the Federal Reserve System, that is the OPEC of American Banks, Gooferment debt, Gooferment spending, cowardly politicians, and spendthrift bureaucrats.

The dollar, like the history of the French Franc, has been “devalued” day by day. Today the dollar is a shadow of its former self.

That’s the problem. 

Tomato soup hasn’t become more expensive; the dollars used to buy it are worth so much less. Ditto gas. Ditto every other product or service.

Argh!

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GOLD: An EXTRA 4,000 metric tons!

Saturday, September 7, 2013

http://dailyreckoning.com/a-huge-gold-prediction-from-reality-tv/

A Huge Gold Prediction… From Reality TV
Matt Insleyby Matt Insley.Posted Aug 30, 2013.

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You wouldn’t expect to find gold under Ghana’s tan brown soil.

But it’s there. Lots of it.

Whether it’s a brand new Caterpillar 330b, a piecemeal front end loader or an army of low-paid workers, excavators are moving top soil to unearth the gold-rich gravel. I’ve seen it all.

There’s a frenzied pace in this boom-country… today we’ll take a look. But more importantly we’ll see how Ghana’s gold rush has shed light on the decade’s MOST important gold trend.

*** and ***

In short, the two American yahoos, while trying to secure a mining claim, found thousands of Chinese nationals are overtaking many of the mining concessions in Ghana. It’s illegal, but no one was stopping the brute force of the Chinese. As one local tribesman admitted, the Chinese “have guns” and aren’t easy to move from a claim.

How Do You Say “Claim Jumper” In Chinese?

If you’re watching the reality show looking for a good plot the Chinese claim jumpers make for a good antagonist. But if you’re tuned in to the show as a gold watcher, you know there’s a lot more to this story.

For starters, what the heck are thousands of Chinese nationals crawling around Ghana’s gold fields for?

*** and ***

If we do some back of the envelope math, since the country’s last “official” announcement we’ll quickly see that China could be holding an EXTRA 4,000 metric tons (or more) of gold. That’s enough gold to place them firmly as the world’s second largest gold holder.

But let’s get back to that reality TV bit above. China, the way I see it, isn’t just producing large amounts of gold and legally importing bullion from Hong Kong.

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Unless you think the Chinese are stupid, why are they pursuing the “barbarous relic”?

Do they suspect that the paper chase will end when the music stops?

And what does the poor Sheeple do?

Debt and “saves” in “dollars” (whatever those are) paying the inflation tax!

Argh!

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MONEY: Don’t think your employer pays anything; you do!

Friday, September 14, 2012

Ignore taxes and benefits and anything other than the value equation.

Assume for a minute that an employee generate $100 of value for an employer.

And, that is the basis of the deal they strike.

Let’s say the employer is generous and give the employee ½ and keeps the other ½.

Employee winds up with $50.

Now lets factor in ONLY social security tax. (12.4% “split” 50/50)

Same value equation.

The $50 “earned” by the employee.

$6.20 split 50/50? 3.60 each.

So the employee gets $46.40, the Gooferment gets $6.20, and the employer retains a value of $46.40.

If to do the deal the employee has to give the employer $50 of value, then the employee has to be willing to take less.

So the employee has to be willing to take $43.80 so that the employer gets $50.

Cut through the illusion that the employer “pays half”!

The employee’s value equation is reduced by the tax that the employer pays.

Each deduction from your pay obviously you pay. But, every dollar your employer puts out on your behalf, ALSO, comes out of YOUR pocket.

Benefits are a bigger scam.

Remember that EVERYTHING comes out of your (the employee’s side of the value equation).

So any benefit that the employer “gives” you, you’re paying for.

And, for example, in the case of health benefits, the employer gets a tax deduction.

But, if you buy them, you don’t. (Yeah schedule A maybe after the % take back.)

How about life insurance? Same thing! They get a tax deduction on your money. And, that’s not deductible to you ever.

Argh!

It’s a rigged game and employees think the employer is being “magnanimous”.

Every item is like that: pension, 401k contribution, … everything has an angle that favors the employer.

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