There is no doubt that many were examining their careers this Labor Day. Some were just thankful to have a job. Many were reflecting on changes they’d like to make. And still others have already made those changes and are just now headed into new careers. Over the weekend I read an article by Tony Kindelspire in the Longmont Times-Call about three individuals who have made those changes and currently reaping the benefits.
Eric Olinger, 36, of Longmont, CO had worked in lumber and hardware for most of his life. After being let go several times, Eric decided to take charge and find a recession proof job. His research pointed him at the nursing field. He entered nursing school at a community college and has just recently become a certified nursing assistant. He plans to continue his schooling and move further up the medical profession ladder. Eric bets, “People are still going to need medical care no matter what.”
Joseph Vogel, 52, of Aurora, CO was a certified master technician in the automobile industry. After losing his job at Ford, Vogel also decided to go back to community college to become a radiology technician. “Trying to go back to school at an older age is tough,” he says, “but you can do it. It’s frightening, it’s scary, it’s literally life changing, but you can do it.” This past Tuesday, Vogel cleared a final certification test. His new job awaits at the University of Colorado Hospital.
Laura Woods, of Hygiene, CO has been a real estate broker for the last several years. Her career in real estate wasn’t unsuccessful, but in a round about way taught her that what she really wanted to do was teach. Woods just landed and has started as a full-time fourth grade teacher. When asked if she has any advice for others looking for work or considering a change, Wood says, “Go for it. You only go around the block once, and you’re not going to know what you truly love unless you try different things.”
When I began to reflect on these three individual I thought, how did these folks get the job they wanted even amidst all the gloomsters out there claiming there are no jobs to be had?
There is nothing I dislike more than reading a self-help book that turns out to be filled with re-warmed platitudes and stale ideas. That is definitely not the case with “Get the Job You Want, Even When No One’s Hiring”. Ford R. Myers gets straight to real time solutions, with a step by step approach that gets the job done. Finding yourself unemployed is not a pleasurable circumstance in the best economic times. In today’s environment it can be downright terrifying.
From new graduates to those displaced later in their careers, this book is the best tool in your job search arsenal. So buy it, read it, do the exercises, regain your confidence and get out there, armed with a realistic strategic plan to do what needs to be done to “Get the Job You Want When No One’s Hiring”.
If you were searching for meaningful work on this Labor Day, I truly wish you Good News and Good Fortune.
“I have been acquiring Perth Mint silver and gold in the depository scheme and am concerned about confiscation issues in the long term. Probably it will not happen, but again given the mindlessness of recent policy decisions there is no reason why the Australian government could not just decide to tax the gains at a punitive level – ‘because people are making unfair gains from it’ or some other vacuous reason. Seems to me the main risk is not holding bullion, but also the ‘privacy risk’ if you want to call it that, that the government knows that you’ve got it and can therefore either tax it highly or confiscate it. Are you able to make comment about how best to acquire completely private gold and silver (ie no record of the sale therefore no one knows you’ve got it and therefore can’t confiscate it), in quantities of up to 100 oz?”
The scenario you suggest is certainly probable in any country. In an environment where other assets have declined and gold is $5000, the politics of envy may come into play. Classic example of this is the Luxury Car Tax introduced in Australia in 1986. While one can expect that a populist “gold profits tax” would get support, I think it is an open question as to whether it will go down well in Western Australia considering the high profile of gold mining in this state.
As I discuss in Australian Gold Confiscation, secessionism would be “in play” in such an environment. A “gold profits tax” could be considered as an Eastern States Federalist tax grab on Western Australia’s wealth, and could provide yet another reason to secede.
As to Government knowledge of your gold, note that the law only requires Australian bullion dealers to record your identity for purchases above $5000, not report them (unless you give cause for the bullion dealer to believe it is a suspicious transaction).
Therefore for the Government to confiscate, it will first need to personally visit each bullion dealer and go through their sale records. This gives you a bit of time between announcement of confiscation and a knock on your door. It is possible that the data collection will happen in advance of an announcement, but it is likely that rumors would circulate quickly.
In any case, those looking to take possession of physical gold should always consider the privacy implications. The risk here is a thief getting hold of the records of a bullion dealer or courier company. One needs to weigh up the convenience and cost of a telephone or Internet sale (which will leave records) versus a cash and carry purchase from your local bullion dealer.
The only way to protect yourself against this risk is to establish a relationship with your local bullion dealer and buy in cash under the relevant reporting/recording limit ($5000 in Australia). There is nothing illegal about buying a little gold with each pay packet, and most bullion dealers would understand that you are a prudent saver and not a drug dealer. But doing twenty $4990 transactions twenty days in a row would be considered a suspicious transaction and reportable.
For those whose personal circumstances mean the risk of theft is greater than privacy/confiscation considerations and thus choose to store their gold in a facility, just a word of warning not to get tricky with your identification. It needs to be clear to the facility operator who is the beneficial holder of the gold, otherwise you may have trouble establishing title to it (or being impersonated) in the future.
For example, even if there were no account identification requirements for bullion, the Perth Mint Depository would still want photo identification as an additional security measure. It is really the only way we can ensure that the person standing at our doors to collect your metal is you.
By way of example, a couple of years ago we had a call from a person who gave us an account number and account name and wanted to sell. However, he did not have the password, nor was he a signatory, so we could not take his instruction or reveal any details of the account. He gave us details, like purchase dates and amounts, that did correlate exactly with the account, but we couldn’t confirm or deny any of that – because he was not identified on the account. He became extremely agitated, but to no avail.
It turned out that he had the account opened in the name of a company by a broker/agent of his and they were the nominee directors and signatories. This privacy mechanism may have sounded good at the time, and maybe he had some other agreement with the broker to ensure they could not abscond with his metal. However, whatever structure he put in place, he had not considered the scenario where his broker was arrested and put in jail!
Not being keen contact his broker in jail, there was no way for him to get the broker to give us an instruction. He therefore had to wait, unsure if the broker had cleaned out his account. There is a happy ending to the story, as the broker did eventually get out of jail (but it was some months) and put in the sale instruction for him. In some cases, privacy may be too much of a good thing.
The first section of the first chapter in The Great Credit Contraction addresses the conflicting definitions of money and currency. If one does not have a correct understanding of money and currency then they will have flawed conclusions regarding inflation or deflation. This will lead to inaccuracies when performing mental calculations of value and result in poorly allocated capital.
WHAT IS MONEY
The terms money, money substitutes, illusions and currency are often used interchangeably. Since they do not mean the same thing this misuse can be confusing. Even many of the leading experts in this subject have difficulty agreeing on definitions. The conflation of these terms causes great problems in understanding monetary science. Therefore, we will separate and distinguish each.
EXPERTS DO NOT AGREE
MONEY
Money must have intrinsic value by being a tangible asset. This is because when A gives B the pizza, the pizza has intrinsic value. For the transaction to be extinguished, A must receive from B an asset with intrinsic value. If B exchanges a 1oz. American Silver Eagle $1 coin for the pizza, then at the time of the transaction, a pizza and a silver coin would exchange hands. Value would be exchanged for value at the time of settlement, and the transaction would be extinguished.
MONEY SUBSTITUTE
A money substitute, on the other hand, is a negotiable instrument that promises the payment of money. An example would be a silver certificate that reads: ”This certifies that there have/has been deposited in the Treasury of the United States of America (number) silver dollar(s) payable to the bearer on demand.”
Chartalism, the State theory of money, asserts the government gives money or currency its value. This theory completely opposes basic economic law. In reality, the backing of government-issued money substitutes with bullion gives the currency value.
If A exchanged the pizza with B for a silver certificate, then the transaction would be settled but not extinguished until A passed on the silver certificate for value. While A holds the silver certificate, its value could change and it could become worthless. This happened on June 24, 1968 when the Treasury of the United States of America declared it would no longer honor redemption of silver certificates.
The use of a money substitute introduces risk to A in the transaction with B because A relinquishes value when he tenders the pizza to B but does not receive an asset with intrinsic value in exchange at settlement. Instead, A must use the instrument in another transaction to receive value.
ILLUSIONS
An illusion is a negotiable that promises nothing and has no intrinsic value. It is like a silver certificate that promises the bearer no silver. It has value only because individuals are willing to bear the payment risk and other risks of the illusion. The bearer usually tolerates the risks because their cost is lower than the value placed on the utility derived from the service the currency provides to the market participants.
CONCLUSION
In conclusion, currency is primarily used to settle transactions. When money, such as gold, silver or platinum, is used to settle a transaction, then the transaction is extinguished. However, if either illusions or money substitutes are used, then the transaction is not extinguished and one or more parties to the contract are left to bear the risk of extinguishing the transaction. This risk often leads to errors in accurately assessing the value and utility from the underlying consideration in determining the price for the transaction. This is one of the largest risks with using fiat currency. As the illusions evaporate during The Great Credit Contraction, here is a free sample, it will be real tangible assets the remain and increase in purchasing power.
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