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October 2009

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In 1980 it took 814 ounces of silver to purchase a median-price home in the US.1 In today’s dollar 814 ounces would cost you $13,154.2

If this happens again you’ll be able to purchase a home, free and clear, for $13,154 of today’s dollar if stored in silver instead of the bank.

This article is not about buying new houses. It’s about a technique to get out of debt and own the house you live in. The debt I’m referring to, here, is fixed: Your rate and monthly payments are the same for the life of the loan.

You need only track the remaining principal on your mortgage and the spot price of silver to come up with input numbers for my proposed technique. Whether or not you execute the plan will depend on your belief.

Belief is best when it comes from your own research. I’ll provide some points of departure for that research but want to focus on execution, here.

Perhaps your belief will come easier knowing that what I’m proposing is just a . . .

Faster Version of the ‘Same Old Thing’

As a debtor, inflation helps pay off your mortgage if your wages keep up.

Every monthly payment is worth less to the bank. The inflation (Theft) is slow enough that wages get a chance to catch up. They rarely do keep pace, but, the number of dollars you receive usually does increase over time.

Three things are happening here on a normal basis as you pay off your mortgage:

  1. Your getting paid more dollars from your employer or customers as you attempt to maintain purchasing power.
  2. Each of your fixed payments are worth less to the bank.
  3. The value of the balance due on the mortgage decreases by the principal portion of your payment and the inflation adjusted value of the remaining debt.

To speed up this existing process I propose that more of the the fruits of your labor be stored in silver to preserve (And possibly increase) its purchasing power. In effect, you’ll be speeding up step 1, above, by translating back your silver savings into dollars at some future date and paying down your mortgage. By that time, however, the dollar will have fallen and silver will have risen.

The silver you cash back into dollars will pay off a larger chunk of the currency your mortgage is denominated in: Dollars. Those increased number dollars may or may not have more purchasing power. But, you don’t need them to. All you need is for the silver to buy more fiat dollars to satisfy the mortgage. In other words, the mere act of preserving existing purchasing power will give the same effect as an increase in purchasing power when it comes to ‘purchasing’ debt.

In this one respect the falling dollar can be used as a One Trick Pony to help you escape from fixed debt.

Give to Caesar What is Caesar’s

As the dollar falls silver (And gold) rise in dollar terms to accurately reflect their unchanging value through the prism of a disintegrating metric (The dollar). Happily for you that disintegrating metric is what you owe the bank. Your mortgage says you owe dollars, not gold or silver. So store real value. When that real value is inevitably worth more tokens in the future turn them over to the bank to purchase your freedom.

Give to Caesar what is Caesar’s: The tokens he conjured out of thin air that now enslave you.

This Bubble’s For You

As people start to catch on and gravitate towards true value more will flee the dollar and buy up real assets. Silver is one of the prime candidates. The above ground silver available for purchase starts to disappear. This secondary event, in turn, causes more flight from the dollar which feeds an even more rapid rise in the price of silver. Then silver, itself, starts to rise even above its true value being one of the few worthy recipients of the flight from the dollar.

The amplification effect on price between silver scarcity and flight from the dollar continues until it takes the familiar shape of historical bubbles we’re now all familiar with. However, knowing this in advance and setting aside a modest amount of silver means that This Bubble’s For You.

I base this on . . .

A Radical Prediction that What’s Happening Will Continue

The Dollar Has Fallen 40% in the Last Eight Years. Contemplating another 40% decline in the dollar is no more outrageous than expecting things to continue as they have been.

If the dollar falls another 40% then a mortgage of $100K will be worth $60K in current value. Before shedding too many tears for the bank recall that the money they ‘gave’ you was conjured out of thin air because of The Awful Truth of How US Dollars are Created.

Apart from some temporary uptick the MSM will seize on as ‘proof of recovery’ do you know of anything being done that will save our fiat tokens?

Get On the Short List

You won’t fully benefit from the decreased value of the mortgage unless you can manage one of the following:

  1. Your wages keep up with Inflation. If you increased your wages by 40% from 2001 to 2009 it was due to your own efforts not the silly CPI adjustments referred to as your raise.
  2. You get paid the same wages in a currency that maintains its purchasing power. If you can manage this you either don’t live in the US or I’m reading your financial columns and watching your youtube videos. Thank you and enjoy the fresh air of the Swiss mountains or I hope your Mandarin lessons are going well, Mr. Rogers.
  3. You use today’s dollar to purchase an asset or commodity that maintains its purchasing power.
    Bingo! Now, that’s I’m talking about.
  4. You come up with a money making idea that brings in tons of dough. Creating value for our fellow human beings is what it’s all about. Please don’t get lazy and keep the fruits of your labor in tokens.

With sharp inflation it’s a challenge to keep wages up even if you own the company. Business owners walk their own tightrope raising prices. Will the inevitable price increases be passed onto employees, immediately? Actually, they can’t.

Conducting business with a volatile currency is an expertise more likely possessed in a Banana Republic. If you’re trying to acquire such expertise there’s a fabulous little book that has a place on your nightstand: The Hyperinflation Survival Guide: Strategies for American Businesses

Stay Tuned for Part 2 of 2

I’ll get very specific in Part 2 of 2 with:

  • The Daily Grind
  • Tax on Standing Still
  • How Much Silver Do you Need?
  • Step-by-Step Implementation
  • If You Don’t Have the Money
  • Belief is Good (And Downside Risk is Minimal)

1Guide to Investing in Gold and Silver, Michael Maloney, Page 152. Maloney uses the Case-Shiller Home Price Index January 1980 home price of $42,747 divided by the silver price of $52.50/oz.

2It’s 10/30/2009 and silver is $16.32/oz. The dollar index is 76.38.

. . . if you know your enemies and know yourself, you will not be imperiled in a hundred battles; if you do not know your enemies but do know yourself, you will win one and lose one; if you do not know your enemies nor yourself, you will be imperiled in every single battle.” — Sun Tzu, “The Art of War”

A friend tipped me to a 5-year FBI study called “Violent Encounters: A Study of Felonious Assaults on Our Nation’s Law Enforcement Officers” (LEO). The Force Science Institute provides an excellent summary of one chapter of the FBI’s 180-page research summary. Please refer to these original sources and the Force Science Institute’s excellent website for the parameters of the study.

What I’d like to do here is present Tactical Tips from these summaries in a format that can be read in 2-minutes or less. That give folks a better chance of digestion even if it takes a few reads before they ‘seep in’.

Caveat in the Age of Doublespeak

As I’ve learned from Will Grigg’s meticulously chronicled accounts, any LEO could label as “Felonious Assault” the most benevolent civilian attempt to defend oneself against wrongful, even tyrannical, police force. However, I’m convinced the “Felonious Assaults” in this study describe the actions of gangsters (Of the non-government variety) that represent the most significant civilian gun-toting threat to the average American and certainly the officers at the core of this study.

Top 5 Most Disturbing Gangsta Tactics

The five most disturbing discoveries of the FBI’s study are that these ganstas:

  1. Have no hesitation whatsoever about pulling the trigger.
  2. Have more experience using deadly force in “street combat” than most police.
  3. Practice with firearms more often and shoot more accurately than the average police although tend to “Shoot for effect” without aiming in actual encounters.
  4. Nearly 70% of gangstas were successful (In getting rounds on target) with handguns, compared to about 40% of the victim officers, the study found.
  5. The street combat veterans (Gangstas) survived by developing a shoot-first mentality.

“If you hesitate,” one gangsta told the study’s researchers, “you’re dead. You have the instinct or you don’t. If you don’t, you’re in trouble on the street….”

Gangsta Training Film

The apparent stupidity and incompetence seen in this ‘gangsta training film’ deflects consideration of the tactics the FBI study has brings to light.

After you’re done laughing at these clowns consider the aspects of their behavior that are no laughing matter: Their shoot first mentality, shooting for effect without aiming, utter disregard for bystanders or even their own friends that could have been in the line of fire. And, notice the relative ease and carefree attitude with which they engage in their meaningless street combat.

Even a skilled armed citizen with full command of their composure and firearm would have difficulty getting off strategic, safe and legally justified shots in the situation in the video. I think such a citizen would defend themselves successfully. However, they would bear the burden of doing so within some very strict parameters.

Functioning within the narrow parameters of protecting lives is always more difficult than having no parameters, at all.

I agree with Karen De Coster that this video “is a reminder to those who carry a weapon for self-defense: consistently train with your weapon – mental preparation and defensive/combat/tactical training – so if you should ever have to engage thugs who wish to do you harm, you will have the superior preparation and skills, and the odds will be with you.”

Here’s the FBI’s conclusions about gangstas and guns after studying them for five years:

Weapon Choice

  1. Handguns, obtained illegally in street transactions or thefts.
  2. In contrast to media myth, none of the firearms in the study was obtained from gun shows.
  3. What was available “was the overriding factor in weapon choice”.
  4. None of the attackers interviewed was “hindered by any law–federal, state or local–that has ever been established to prevent gun ownership.
  5. The gangsta’s in the study “just laughed at gun laws”.

Familiarity

  1. The average age was 17 when they first started packing “most of the time.”
  2. Nearly 40% of the gangstas had some type of formal firearms training, primarily from the military.
  3. More than 80% “regularly practiced with handguns, averaging 23 practice sessions a year,”
  4. Practice was usually in informal settings like trash dumps, rural woods, back yards and “street corners in known drug-trafficking areas.”
  5. One spoke of being motivated to improve his gun skills by his belief that officers “go to the range two, three times a week [and] practice arms so they can hit anything.”
  6. Officers in the study averaged 2.5 qualifications per year. Only 6 of the 50 officers reported practicing regularly with handguns apart from what their department required.
  7. The gangstas practiced more often than the officers they assaulted, and this “may have helped increase [their] marksmanship skills,”
  8. The gangsta quoted above about his practice motivation, for example, fired 12 rounds at an officer, striking him 3 times. The officer fired 7 rounds, all misses.
  9. More than 40% of the gangstas had been involved in actual shooting confrontations before they feloniously assaulted an officer.
  10. Ten of these “street combat veterans,” all from “inner-city, drug-trafficking environments,” had taken part in 5 or more “criminal firefight experiences” in their lifetime.
  11. One reported that he was 14 when he was first shot on the street, “about 18 before a cop shot me.”
  12. Another said getting shot was a pivotal experience “because I made up my mind no one was gonna shoot me again.”
  13. Only eight of the 50 LEO victims had participated in a prior shooting; 1 had been involved in 2 previously, another in 3. Seven of the 8 had killed gangstas.

Concealment

  1. The gangstas said they most often hid guns on their person in the front waistband, with the groin area and the small of the back nearly tied for second place.
  2. Some occasionally gave their weapons to another person to carry, “most often a female companion.”
  3. None regularly used a holster, and about 40% at least sometimes carried a backup weapon.
  4. In motor vehicles, they most often kept their firearm readily available on their person, or, less often, under the seat.
  5. In residences, most stashed their weapon under a pillow, on a nightstand, under the mattress–somewhere within immediate reach while in bed.
  6. Almost all carried when on the move and strong majorities did so when socializing, committing crimes or being at home.
  7. About one-third brought weapons with them to work.
  8. Interestingly, the gangstas in this study more commonly admitted having guns under all these circumstances than did gangstas interviewed in the researchers’ earlier 2 surveys, conducted in the 1980s and ’90s.
  9. Male gangstas said time and time again that female officers tend to search them more thoroughly than male officers.
  10. In prison, most of the gangstas were more afraid to carry contraband or weapons when a female CO was on duty.
  11. On the street, however, both male and female officers too often regard female subjects “as less of a threat, assuming that they are not going to have a gun.
  12. In truth, the researchers concluded that more female gangstas are armed today than 20 years ago–“not just female gang associates, but female gangstas generally.”

Shooting Style

  1. Twenty-six of the gangstas [about 60%], including all of the street combat veterans, “claimed to be instinctive shooters, pointing and firing the weapon without consciously aligning the sights”.
  2. Gangstas frequently “Practice getting the gun out and using it”.
  3. Gangstas “Shoot for effect.” Or as one of the gangstas put it: “We’re not working with no marksmanship….We just putting it in your direction, you know….It don’t matter…as long as it’s gonna hit you…if it’s up at your head or your chest, down at your legs, whatever….Once I squeeze and you fall, then…if I want to execute you, then I could go from there.”

Hit Rate

  1. More often than the officers they attacked, gangstas delivered at least some rounds on target in their encounters.
  2. Nearly 70% of gangstas were successful (In getting rounds on target) with handguns, compared to about 40% of the victim officers, the study found. (Efforts of gangstas and officers to get on target were considered successful if any rounds struck, regardless of the number fired).
  3. Gangstas “Might have had an advantage because in all but 3 cases they fired first, usually catching the officer by surprise”.
  4. “10 of the total victim officers had been wounded [and thus impaired] before they returned gunfire at their attackers.”

Missed Cues

  1. Officers would less likely be caught off guard by attackers if they were more observant of indicators of concealed weapons, the study concludes.
  2. These particularly include manners of dress, ways of moving and unconscious gestures often related to carrying.
  3. “Officers should look for unnatural protrusions or bulges in the waist, back and crotch areas,” the study says, and watch for “shirts that appear rippled or wavy on one side of the body while the fabric on the other side appears smooth.”
  4. In warm weather, multilayered clothing inappropriate to the temperature may be a giveaway.
  5. On cold or rainy days, a subject’s jacket hood may not be covering his head because it is being used to conceal a handgun.
  6. Because they eschew holsters, gangstas reported frequently touching a concealed gun with hands or arms “to assure themselves that it is still hidden, secure and accessible” and hasn’t shifted”.
  7. Such gestures are especially noticeable “whenever individuals change body positions, such as standing, sitting or exiting a vehicle”.
  8. If they run, they may need to keep a constant grip on a hidden gun to control it.
  9. Just as cops generally blade their body to make their sidearm less accessible, armed criminals “do the same in encounters with LEOs to ensure concealment and easy access.”
  10. Officers who are assigned to look for concealed weapons, while working off-duty security at night clubs for instance, are often highly proficient at detecting them. “But then when they go back to the street without that specific assignment, they seem to ‘turn off’ that skill,” and thus are startled–sometimes fatally–when a suspect suddenly produces a weapon and attacks.

Mind-Set

  1. Thirty-six of the 50 officers in the study had “experienced hazardous situations where they had the legal authority” to use deadly force “but chose not to shoot.” They averaged 4 such prior incidents before the encounters that the researchers investigated.
  2. “It appeared clear that none of these officers were willing to use deadly force against an gangsta if other options were available”.
  3. The gangstas were of a different mind-set entirely. In fact, the study team “did not realize how cold blooded the younger generation of gangsta is. They have been exposed to killing after killing, they fully expect to get killed and they don’t hesitate to shoot anybody, including a police officer.
  4. They can go from riding down the street saying what a beautiful day it is to killing in the next instant.
  5. “gangstas typically displayed no moral or ethical restraints in using firearms”.
  6. The street combat veterans (Gangstas) survived by developing a shoot-first mentality.

I was Mr. Mom the last two weeks for our 11 month old. His grandparents, who usually take care of him during the day, went on vacation. My wife works away from home. I work, too. . . from home. That put me in charge of the day care.

By our third day, together, I was able to figure out what he wanted when he whined or cried. By the fourth day his whimpering stopped because he had what he needed before having to cry about it. Taking care of him was a lot easier than I expected. Sure, he needs lots of attention, but, it was nothing like the awful stories I’ve been hearing all my life. I began to think about why babies have a reputation for being so difficult. And, what’s making it easier for us?

I’m no more a baby expert than any parent. What I’m listing, here, are seven reasons why I think we’re having an easier time with our baby than the stories you’ll hear ‘out there‘. Six of them the parents can control. The last one is luck of the draw:

  1. Schedule
  2. Routines
  3. Company
  4. No Vaccines
  5. Balanced Meals
  6. Vitamins
  7. Disposition

(Note: This article was written in 2009. We’ve since had our second baby who was only a dream when writing this article. One thing that stands out, now, is the implication that a baby crying is, somehow, a disaster–or proof positive of a problem– that must be “solved”. Of course, it could be just that as crying is one of the few ways a baby can communicate . . . anything. What I left out, in my new-father haste to “solve the problem”, was the sheer joy of a baby crying when you “just know” there’s nothing seriously wrong. That’s why I chose the picture for the article of both a man and baby crying with mom laughing: It’s a more accurate portrayal of the wonder and beauty of this time in a  family’s life. I don’t want to live in a world where baby’s don’t cry nor do I mean to contribute to such a world through any words that I may write. What I do want to share with potential new parents is how much easier, and lovely, it is to care for a crying baby than what you may have been told. That’s something I never knew, in large part, because the parents I might have learned from didn’t say. If silence is the worst mistake then I pray the Lord keep me from making it and keep it short and sweet it the process.)

Schedule

Timothy’s on a loose schedule for the entire day. It’s specific in content and sequence. It’s flexible in start time with naps and bottles dropping off depending on his mood and other activities:

  1. Wake up and Bottle – Whey protein (No cows milk) With Vitamins and Fatty Acids.
  2. Play or sleep until . . .
  3. Breakfeast – oatmeal with a scoop of stomach flora
  4. Bath and Change Clothes
  5. Ride in Toy Car around the block
  6. Play, Bottle then Nap
  7. Lunch
  8. Play, Bottle then Nap
  9. Dinner
  10. Play
  11. Bottle (with cereal) then off to bed.

This is easier than it looks. The start times shift up to an hour though always in the same sequence. There’s many benefits for him (And for me, these last two weeks) in being on a schedule like this:

  • Predictability – The baby knows what to expect and so do we. Neither of us is surprised by bath time or when its time to take a knap. The baby begins to expect to receive all the things he needs at a certain time. It becomes easy to figure out what he may be missing if he does start to whine or cry. In other words, it makes the process of elimination for why he’s crying very simple.
  • Planning – All of us know what is happening and when, including the baby. We can plan the times for phone calls, shopping for items needed, visits from friends, working out at the gym or whatever else is going on in our non-baby life.
  • Comforting – It seems to me the schedule removes a certain anxiety from the baby’s mood. His emotions and metabolism ebb and flow as the schedule unfolds. He knows that everything he needs is going to be given to him when its time to be given. And it was comforting for me to know that I was doing everything necessary for him and not leaving anything out.
  • Ease of Transition to Backup Caretaker – This is an awesome benefit! It made it very easy for me to step in as primary caretaker. Timothy’s schedule didn’t change at all when grandmom and grandpop went on vacation. I was clumsy, at first, but knew what and when to do everything and was certain nothing was being left out because of the schedule they gave me. When he cried in the first three days it was because I was not getting him to the next item on his schedule in time or he wanted a bottle instead of a nap, or, vice versa.

Routines

Everything on and off his schedule unfolds in a predictable way:

  • When he’s watching a cartoon he’s sitting in his chair and hears the sound of us in the kitchen making his lunch.
  • He knows its time to take a nap when we’re lying next to him after his morning bottle.
  • He knows he’s going for a car ride when the dog starts barking and we get his toy car ready.

This is real SuperNanny stuff, I know. But, we’re planning on having a second child and I think schedules and routines are going to be key in managing our lives. I also think they’re going to be key in having less babies crying for seemingly no reason. And if they cry, we’ll have good clues as to why.

Company

Not having company makes Timothy cry.

Other than when he’s sleeping he wants company at all times. This will probably change in a few years as he starts reading or playing with more educational toys. But, for now, he wants someone with him at all times. You don’t have to be looking at him or directly interacting with him. You just have to be there with him in the same room.

BTW, Isabel gets a special mention in this category: We get a little crying when switching company from mom to dad and just laughing when switching back to mom. Do we have a mama’s boy issue, here? Mmmmmmmm. Not sure. It only lasts about 45 seconds. We’ll see.

No Vaccines

I think we have a much easier time with Timothy because he wasn’t vaccinated. When he cries its for one of six reasons (See Conclusion, below). He’s not in a constant state of recovery from the three dozen antigens he would have gotten by now. That’s 36 less things to cry about.

For a thorough explanation of why we chose not to vaccinate see my article, Vaccines For My Baby. It was not an easy choice, our first pediatrician ‘fired’ us and it’s been the subject of many discussions. But, I do think it was the right choice and part of that is evident in Timothy’s lack of crying for ‘mysterious’ reasons.

I may be wrong, but, I suspect the reason babies have a reputation for endless and inexplicable crying is because of the dramatic rise in vaccines given to them since 1982. If you’ve got the other six items in this article under control then vaccines may be the crying culprit.

What a tragedy it would be if less people have babies because vaccines make them cry too much. New parents tell would-be parents their nightmarish stories and the endless patience needed to withstand constant crying. The would-be parents don’t have superhuman patience so opt out of having children, at all.

All I’ll say here is that vaccines are not needed to achieve immunization to the diseases for which they’re given. In most cases the fine print actually says that immunization is not guaranteed by the vaccine. The only thing that can guarantee protection from the world’s millions of diseases is the babies’ immune system — the very thing vaccines tend to destroy, not boost.

Balanced Meals

I get grumpy and grouchy when I eat the wrong foods. If I was a baby that would probably take the form of crying. I think its reasonable to say that a baby cries less on a balanced diet. Or, to put it another way: An unbalanced diet is unlikely to lead to less crying.

Blood sugar regulation is key to mood leveling. We’ve taken pains to remove high-glycemic food from our son’s diet. His diet is about 30-40-30 protien-carbs-fats with the carbs being all vegetables and fruits. His bottle is the closest to breast milk in content we could find with no cow’s milk (Whey protein, instead).

From what we’ve seen this seems to be a very balanced diet for him. It levels his blood sugar, keeps him satisfied until the next mealtime and his energy spikes are smooth and natural with no crashing in between.

Vitamins

What’s the opposite of a vaccine? Nutrition that assists rather than destroys your immune system. Vitamins, minerals and fatty acids are all added to Timothy’s morning bottle.

We give him extra vitamin D because babies get much less sun than toddlers. We also give him a baby appropriate liquid multi-vitamin, fatty acids and add a small scoop of beneficial bacteria for his stomach to his morning cereal.

All of this was recommended by our son’s doctor who is a naturopath. The stomach flora is recommended for babies who were breastfed for less than 6 months. The added vitamins are to supplement a babies diet since newborns are not eating a wide variety of food, yet. Bacteria in the stomach enables easier digestion: One less thing to cry about.

Disposition

This one’s luck of the draw.

Most of the parents I’ve talk with say their baby had a definite disposition from the moment they were born. That’s been true for us, as well.

I hear the term ‘colicky’ to describe a baby that cries all the time. Colic is a term for anything that causes abdominal pain in horses (And now babies, too). I’m not sure if this is 100% disposition. It could be one of the other 6 items in this article because the term ‘colicky’ is so broadly used.

I’ll know more about this after we have baby #2. For now I would just say that we did not draw the short straw on this one (Thank God).

Conclusion

Our baby cries for six reasons:

  1. Hungry
  2. Tired
  3. Dirty – Needs diaper change
  4. Company
  5. Pain – Bumps himself while playing
  6. Toy – Got pushed under the furniture or he wants one.

It’s worth saying that these are the only reasons he cries. I wish somebody gave me this list when I was deciding on having children. It’s a much shorter list than I was led to believe by rumours, magazine articles and stories floating around ‘out there’.

Addressing the six things that make our baby cry doesn’t require superhuman patience. It requires a simple rem edy to a short list of causes.

We didn’t draw the short straw on disposition, this time. If Baby #2 is ‘colicky’ at least we’ll have strategies in our control to minimize babys’ (And parents’) crying.

I’m grateful to my wife, mother and father-in-law for putting so many things in place that serve Timothy’s needs before he has to cry about them. He has a schedule, routines, company, is not vaccinated, has balanced meals, gets good nutrition and there is no mysterious or endless crying. None of these things are a big deal, alone. It is a very big deal, however, when they come together and make for a happy baby and a peaceful house.

Copyright © 2014 by Terence Gillespie. Permission to reprint in whole or in part is gladly granted, provided full credit and a live link are given to McGillespie.com