Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Gold and Guns (the real Obama boom)
Mises Institute ^ | January 01, 2010 | Doug French

Posted on 01/01/2010 6:22:46 PM PST by sickoflibs

In his extraordinary book Democracy: The God that Failed, Hans Hermann Hoppe points out that the process of civilization is stopped when government continually violates property rights.

The natural process of civilization comes through delaying consumption, saving, and building capital. Undoing it leads to higher societal time preference.

When natural disasters strike or a gunman robs you in an alley, "the effect of these on time preference is temporary and unsystematic," Hoppe explains.

Victims are entitled to defend themselves against the individual aggressor and prepare themselves for the calamities of the occasional act of God. Resources will be reallocated to defend one against potential robbers, and provisions will be made for potential natural disasters.

However, when government aggresses, it is considered legitimate and "a victim may not legitimately defend himself against such violations." Democracy legitimizes this government aggression because the violence is sanctioned by a majority of voters.

This decivilization process that Hoppe describes continues in fits and starts. The uneducated continue to live in never-never land, believing that each new ruler means change and that their lives and happiness can safely be put in the hands of a kind and caring government. But government's current ham-handedness — with its bailouts, money printing, and rights violations — has alerted more than a few individuals to do what comes naturally: defend themselves and prepare for the worst.

The government's legal-tender money — the dollar — is now under questioning. While the commercial-banking fractional-reserve monetary engine is stalled with loan write-downs and bank failures, the Federal Reserve has expanded its balance sheet like never before. Man of the Year Ben Bernanke is deathly afraid of deflation, and John Maynard Keynes is a hero again. The inflation cake is in the oven, albeit not quite fully baked.

And the current administration does not seem friendly to the property right of allowing us to protect ourselves. The president believes that only law-enforcement officers should have weapons.

So while high-time-preference folks like Shannan DeCesare shout "Merry Christmas to me" after unloading some gold jewelry for $610 at a gold party, low-time-preference types are lining up in pawnshops and gun shows to buy gold, silver, lead, and guns.

DeCesare attended a gold party that the Wall Street Journal describes as an example of the new Tupperware party. These parties appeal to the cash-for-gold crowd trying to maintain a boom-time lifestyle by unloading their valuables. The cash poor end up taking between 65 and 75 percent of what their gold would be worth to a refiner according to the WSJ.

These parties offer a comfortable atmosphere for selling the yellow metal. "It can be really difficult for a lot of people to walk into a jewelry store or pawnshop holding a little bag of gold," Lisa Rosenthal, owner of Party of Gold, told the WSJ. Ms. Rosenthal's company has specialists working more than 1,000 parties a month. And why would anyone sell their gold for 65 to 75 cents on the dollar? In his book More Than You Know: Finding Financial Wisdom in Unconventional Places, author Michael J. Mauboussin has a chapter titled, "All I Need to Know I Learned at a Tupperware Party." People buy Tupperware because they feel like they must reciprocate the host for hosting the party and providing the free party favors. Plus, as Mauboussin explains, "the single most important fact of the Tupperware formula is the tendency to say yes to people you like."

In the case of gold parties, attendees don't want to just show up, drink the wine and eat the appetizers but leave turning their noses up at the low prices offered for their, or their departed mother's, old jewelry, especially when it's their friend down the block hosting the event. They happily trade a metal that has proven to have value for thousands of years for the government's depreciating paper.

But while gold sellers are shy to see the nearby pawn dealer, gold buyers go where they must to see who has inventory for sale. The demand for guns is so good that the gun show in Las Vegas recently charged $14 a head just to walk in and look around — after parking cost of $3. The lot was full and business was brisk.

The demand for space at gun ranges in Salt Lake City was strong enough the day after Christmas that it was a 15- to 20-minute wait to rent an "alley" at the second range we inquired with. The first range contacted was reservation only and completely booked for the day.

Panic buying of ammunition, silver, and gold has created shortages and led to price increases for all three in 2009. "Currently no .380 ammunition — I haven't seen any for about four months… .38 special, it's been at least a couple of months," Denver gun-store manager Richard Taylor told CNN earlier this year. "It's just that there's been a huge demand and it's far outweighed supply right now."

And in November, Bloomberg reported that the US Mint had suspended sales of most American Eagle coins made from precious metals, including gold and silver. With coin sales surging 88 percent in the first 10 months of this year, the mint is out of metal and sales will resume "once sufficient inventories of gold-bullion blanks can be acquired to meet market demand," the mint said in a statement posted on its website.

So, some Americans are unloading their family treasures and cheering for bailouts, money printing, and gun control, while others are stocking up on precious metals, guns, and ammo to protect themselves and their wealth.

There is no question which group is the civilized one.


TOPICS: Constitution/Conservatism; Editorial; Government
KEYWORDS: 2009review; banglist; bhobanglist; bhoeconomy; economy; fourth100days; gold; guns; schifflist
Navigation: use the links below to view more comments.
first 1-2021-4041-42 next last
The Peter Schiff/Redistribution Watch Ping. (Washington Bankrupting our Nation by Spending your past, present and future money!)

If you realize both parties in Washington think our money is theirs and you trust them to do the wrong thing, this list is for you.

If you think there is a Santa Claus who is going to get elected in Washington and cut a few taxes and spend a few trillion and jump start the economy, and get our lost money back, this list is not for you.

You can read past posts by clicking on : schifflist , I try to tag all relevant threads with the keyword : schifflist.

Ping list pinged by sickoflibs.

To join the ping list: FReepmail sickoflibs with the subject line add Schifflist.

(Stop getting pings by sending the subject line drop Schifflist.)

1 posted on 01/01/2010 6:22:48 PM PST by sickoflibs
[ Post Reply | Private Reply | View Replies]

To: Harrius Magnus; mojitojoe; Pelham; mom2twinsn2; LongLiveTheRepublic; ConservativeOrBust; ...
The Peter Schiff/Redistribution Watch Ping. (Washington Bankrupting our Nation by Spending your past, present and future money!)

So, some Americans are unloading their family treasures and cheering for bailouts, money printing, and gun control, while others are stocking up on precious metals, guns, and ammo to protect themselves and their wealth. There is no question which group is the civilized one.

2 posted on 01/01/2010 6:25:18 PM PST by sickoflibs ( "It's not the taxes, the redistribution is spending you demand stupid")
[ Post Reply | Private Reply | To 1 | View Replies]

To: sickoflibs

Gold, silver, guns, bullets, solar panels, batteries, AV Fuel, generators, portable heating and cooling units, green houses, canning jars, seeds, planter boxes, antibiotics, deep freeze, food vacuum sealers, food food food .... other buying boom items.


3 posted on 01/01/2010 6:36:13 PM PST by GregoTX (When people find they can vote themselves money it will herald the end of the republic. Ben Franklin)
[ Post Reply | Private Reply | To 1 | View Replies]

To: sickoflibs

Funny,
It Comes Down to:
Plata O Plomo


4 posted on 01/01/2010 6:39:28 PM PST by bravotu (Have a Nice Day !)
[ Post Reply | Private Reply | To 2 | View Replies]

To: sickoflibs
12/25/09 the First time I ever received ammunition for Christmas.

In fact, I received a bible and ammunition.

5 posted on 01/01/2010 6:43:06 PM PST by right way right
[ Post Reply | Private Reply | To 1 | View Replies]

To: sickoflibs

Very, very good post. Of course, Republicans are just as big of thieves as Democrats.


6 posted on 01/01/2010 6:48:25 PM PST by FightThePower! (Fight the powers that be!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: sickoflibs

It can be had. Put it on back order with a big store that starts with a C and ends with a abela’s. There are $20.00 off coupons out there that will pay for shipping.


7 posted on 01/01/2010 6:50:00 PM PST by Stentor
[ Post Reply | Private Reply | To 1 | View Replies]

To: right way right

This was the first year where I asked for ammo for Christmas.


8 posted on 01/01/2010 6:50:19 PM PST by NeoCaveman (Hey Ducks, fear the sweater vest)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Stentor

Meant to quote sentence about .380.


9 posted on 01/01/2010 6:51:13 PM PST by Stentor
[ Post Reply | Private Reply | To 7 | View Replies]

To: FightThePower!

I like your thinking. See reply #1.


10 posted on 01/01/2010 6:52:22 PM PST by sickoflibs ( "It's not the taxes, the redistribution is spending you demand stupid")
[ Post Reply | Private Reply | To 6 | View Replies]

To: right way right

“Praise the Lord and Pass the Ammunition”

When I was a kid back in the late ‘40s, my old man used to sing snatches of this ditty:

Down went the gunner, a bullet was his fate
Down went the gunner, then the gunners mate
Up jumped the sky pilot, gave the boys a look
And manned the gun himself as he laid aside The Book, shouting
Praise the Lord and pass the ammunition!
Praise the Lord and pass the ammunition!
Praise the Lord and pass the ammunition and we’ll all stay free!

Praise the Lord and swing into position!
Can’t afford to sit around and wishin’
Praise the Lord we’re all between perdition
and the deep blue sea!

Yes the sky pilot said it
You’ve got to give him credit
for a son - of - gun - of - a - gunner was he,
Shouting;
Praise the Lord we’re on a mighty mission!
All aboard, we’re not a - goin’ fishin;
Praise the Lord and pass the ammunition and we’ll all stay free!


11 posted on 01/01/2010 7:07:14 PM PST by headsonpikes (Genocide is the highest sacrament of socialism - "Who-whom?")
[ Post Reply | Private Reply | To 5 | View Replies]

To: Stentor

How many rounds of .380 should a normal person expect to use during the next five years, say?


12 posted on 01/01/2010 7:09:05 PM PST by Misterioso (To deal with men by force is as impractical as to deal with nature by persuasion. -- Ayn Rand)
[ Post Reply | Private Reply | To 9 | View Replies]

To: headsonpikes

Ah yes, I found it for you.

Enjoy.

http://www.youtube.com/watch?v=Vf3gKtdb2cE


13 posted on 01/01/2010 7:12:06 PM PST by right way right
[ Post Reply | Private Reply | To 11 | View Replies]

To: right way right
12/25/09 the First time I ever received ammunition for Christmas.

__________________________________________

Same here, not counting my first box of 22LR in 1965.

14 posted on 01/01/2010 7:15:26 PM PST by wtc911 ("How you gonna get down that hill?")
[ Post Reply | Private Reply | To 5 | View Replies]

To: sickoflibs; Just Lori; blam

Pretty good post, but I really hope more people realize that they cannot eat those Kruggerands no matter how good of a deal you can get for them. If you can cash in some of Grandma’s old gold jewelry and buy dry goods, ammo and weapons then perhaps you are on the right track.

Newsweek just did an extensive article on “preppers” and it was following along these same lines as far as what people are quietly doing our there in suburbia. Ammunition of any caliber is going to be the hard currency of choice when the Dollar finally collapses and plenty of people are quite cognizant of that fact, hence the shortage of ammo for well over the past year.

I realize that the current trend is to plan on riding the “bow wave” out of town to some sort of armed hideaway out in the boonies in Montana somewhere, but plenty of people are prepared to stay put and ride things out in place. I live in an area with a high concentration of Mormons, and not only are they prepared to hack it for a year on their own, they will also fight to defend what they value and cherish.

Heading for the hills is not always the best option.

TEOTWAWKI *ping*


15 posted on 01/01/2010 7:20:33 PM PST by Bean Counter (Stout Hearts....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Bean Counter
I was a good boy last year ... Santa was extra nice.


16 posted on 01/01/2010 7:26:58 PM PST by CapnJack
[ Post Reply | Private Reply | To 15 | View Replies]

To: Bean Counter
Got 300 more rounds of 380 ammo yesterday...always a good day when you get ammo, guns or gold.

BTW, bring me your Krugerrands and I'll give you some of my food for them.

17 posted on 01/01/2010 7:30:24 PM PST by blam
[ Post Reply | Private Reply | To 15 | View Replies]

To: bravotu

You [and others] are one of many reasons I return to Free Republic: I learn.

Looked up plata o plomo and got new information:

http://www.hbs.edu/research/facpubs/workingpapers/papers2/0203/03-060.pdf


18 posted on 01/01/2010 7:30:42 PM PST by Bhoy
[ Post Reply | Private Reply | To 4 | View Replies]

To: Misterioso
How many rounds of .380 should a normal person expect to use during the next five years, say?

Don't know about "normal". Over five years, I'm on a pace of about 3000 rounds of FMJ and 800 odd JHP. Should shoot it more but I'm not rich. Just trying to make sure my trusty daily companion sends things in the right direction without breaking the bank.

19 posted on 01/01/2010 7:40:34 PM PST by Stentor
[ Post Reply | Private Reply | To 12 | View Replies]

To: Bean Counter
Pretty good post, but I really hope more people realize that they cannot eat those Kruggerands no matter how good of a deal you can get for them.

Can you point to one time in recorded history, over the last 4000 years, when someone with gold in his hand went hungry? (A war where the person was a POW doesn't count.)

20 posted on 01/01/2010 8:20:39 PM PST by ikka
[ Post Reply | Private Reply | To 15 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-42 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson