Scots must also forgo One Direction

United Kingdom officials recently warned the people of Scotland that if they vote for independence they cannot be part of a monetary union with the UK. The Scots must also give up the following benefits of being part of the UK:

  • Can’t bow before the queen.
  • Can’t act superior to all people of the world.
  • Can’t listen to One Direction.
  • Can’t eat British cuisine such as tinned peas.
  • Can’t listen to the Hokey Cokey song.

See our main post on this topic.

Gas price shows rampant US inflation

With the rise in the gas price since 1998, how could any economist or journalist claim the US is not experiencing rampant inflation?

Gas Price since 1998, USA, unleaded

Download the Excel file.

Federal Reserve employees purposely excludes gas prices from one main CPI number because they can’t massage the data. With computers, they can swap in a lower-priced computer if their target computer becomes too costly. People can’t swap gasoline and mercifully Fed Reserve doesn’t swap in the cost of a bus ticket, even though many people now ride the bus to avoid gas prices.

Protect your money…move it offshore

Inflation is when the government slowly or quickly takes your wealth by issuing more of the local currency. Taking all of your wealth immediately is also possible, as was done in Cuba after the revolution. After you choose your money for wealth preservation, you have to protect it. According to Terry Coxon, you should avoid having all your money in your home country and in accounts in your name. He recommends you expatriate your wallet.

Add to your IRA? How about dissolve it?

Social Security is a scheme where the government takes your money, tells you its in an account just for you, but really gives your money to the elderly or simply uses it. You only have an IOU.

Since this scheme is accepted, it’s not a big step to see the government take control of IRAs, then issue monthly statements showing you are getting a certain return, but really spending your money on current government expenses. Your IRA would really be an IOU, from Uncle Sam.

I had heard about this possibility before, and I know that the government of Argentina did take control of retirement accounts.  The following quote made it seem more likely:

If foreign sources of funding will not cover the Federal government’s deficit after June 2011, and Washington will definitely not cut spending in any sort of realistic sense, then there really are only two—and only two—possibilities:

• The indefinite continuation of QE by the Federal Reserve.

• Or the requisitioning of private retirement accounts and pension funds.

Don’t dismiss the second possibility out of hand—think it over.

What pool of money is just sitting there, not doing much, while being legally barred from its owners? What pool of money is easily accessed, yet is large enough to fund the deficit?

The retirement accounts of the American people: Both individual private accounts, and pension funds.

So instead of rushing to add money to my IRA by April 15, I’m thinking about cashing it out, paying the fine, and moving my wealth one more step away from the greedy hands of spendthrift politicians, who already taxed it and may want even more.

See related article:

“Is That Your Retirement Account You’re Holding On To So Tightly? Or Are You Just Happy To See Me?” Said The Man From The Government

Libyan revolutionaries create authoritarian central bank

So much for the revolution in Libya. The “rebels” have already created a monopoly central bank.

From Bloomberg:

The Council also said it “designated the Central Bank of Benghazi as a monetary authority competent in monetary policies in Libya and the appointment of a governor to the Central Bank of Libya, with a temporary headquarters in Benghazi.”

Related:

Wow That Was Fast! Libyan Rebels Have Already Established A New Central Bank Of Libya

Gold ETF advertisement lampoons storage hassles

An advertisement for the GLD exchange-traded fund claims physical gold requires complex security methods like a perimeter of infra-red lights. The average person can try these methods, such as private vault storage or just burying it in your backyard. The advertisement appeared in a recent issue of Charles Schwab’s customer magazine.

What’s not mentioned is that malicious government authorities can easily confiscate ETF holdings but may not find buried gold bars. Since both methods have drawbacks, many people diversify into various forms of gold, and also keep some outside of their home country.

Ad showing gold bars protected by infra-red security lights