Buying Silver in Japan

I would like to point out that, even after the recent drop in silver's price, if you live in Japan, and wanted to buy small amounts of silver, had you listened to my advice, you'd have done OK even with the recent 10% silver price drop.

Perry Como - Silver Bells

(Thanks to Max Keiser for the idea of putting silly music videos in my blog. 
"Soon it will be Christmas time!!!!")

I think I need to write an explanation as some people seem confused as to what this blog is about. It is specifically about "Media, Marketing and Japan." And, since this is Japan, when I talk about some subjects like "food shortages" or water rationing, I am talking about Japan. (By the way, don't want to get on that, but water is still being rationed in Tokyo nearly 2 months after the great Tohoku earthquake and tsunami to one bottle per person, per day).


Now, sometimes I do write about investing and buying precious metals and stocks. I get all giddy when I stumble into what seems like an easy money maker and I want to tell everybody. That happened recently with a post entitled Buy Silver at $1 Dollar Over Spot But Do it RIGHT NOW!  In that blog, I recommended that people buy at a site that I had found an error on and was selling silver one ounce rounds at a mere $1.13 over spot price. I told people that if they were going to buy one ounce rounds, then to buy them now as the site would block the sales when they opened for business the next morning. The site blocked the silver sales the next morning as I predicted they would. 


Of course. Most people don't run businesses to lose money.


But, this blog is still about Japan. It seems that I must constantly remind people about that. If you don't live in Japan, then my advices on buying precious metals, etc. might not be so useful to you as your tax and exchange rates are vastly different. I am not licensed to be giving anyone any legal or financial advice. I do give tips and I do recommend places to shop or buy. Especially when it comes to buying silver or gold in Tokyo.

 28 kilogram and up bars of silver have no margin markup in Japan -  

Anything smaller has a huge markup. 

Like I said, I do love telling people an easy way that I found to make some extra money. I did that in the late 1970's when I found out the Hunt Brothers were trying to buy up all the silver. I took all of my measly savings out of the bank and bought all the kilograms bars of silver I could. I don't remember exactly what the silver price was, but it seems to me that I bought at around $7.48 an ounce. I loaded them all up in my car (worried that they were too heavy) and went home. It seems that it was only a few months (it might have been more than a year - I was always high in those days) later that I sold all of those kilogram bars at about $44 an ounce! All I really do remember clearly was that after it was over was "Wow! That was easy!" and that

I was 18 year old kid & 

had a check for over $16,000 dollars in my hands that I knew I had better cash immediately. Which I did. 

Was it genius that I made this trade? Nope. Just simple reading the newspapers and listening to what people were saying.

I've been very lucky enough to make some good money on deals like this several times in my life. These kinds of "Easy money" deals don't come too often. Many years later, I made a killing on Citibank and the first Gulf War. Can't remember which came first.

I cashed in big time on the first Gulf war because George Bush I, and everybody else, said that Saddam Hussein's Iraqi military was the world's #4 mightiest military (remember?) Bush and the rest of the US "Leadership" went on TV and announced that we were going to bomb the Iraqi military for at least month. 

I wondered why they broadcasted this information. "Gee... Talk about giving away the plan and a giveaway of money!" I thought. I looked up what company was the largest supplier of jet plane fuel to the US and UK forces and found out that, at that time, there was really only one company that did that and that companies name was Occidental Petroleum. 

Once again, I took out almost all of my savings and bought all the Occidental Petroleum shares that I could. I think they were $11 dollars or so a share. Within one month, after Schwarzkopf said that bombing the Iraqi's relentlessly was yielding lower and lower returns, and that they'd have to invade, I sold all my stocks. 

I profited about over $20,000 on that one. Not bad for a months work. So did my two friends who actually listened to me. (Well, then, just like now, I only had two real friends!)

Was it genius that I made this trade? Nope. Just simple reading the newspapers and listening to what people were saying. Anyone could have done it. Trust that there were many who did.

I raked in the bucks on Citibank too when it fell to around $9 dollars a share.. I bought all I could. I traded back all those Citibank shares at over $30-some a share within a short time for a Japanese company that I felt was more stable. Glad I did that. 

Genius? Nope. I think Citibank was the first of the "Too big to fail" banks... I just read the papers and listened to what people were saying. 

Now, when I recently recommended that people in Japan stock up on food and water and begin buying precious metals (even when many other's are warning about Japan's debt and even after the food shortages after the big Tohoku earthquake) in Japan's Financial Armageddon is Coming in 60 Days? I get attacked by naysayers. In that last article mentioned, I wrote about my past track record on recommending silver and gold as savings and a hedge against inflation:

If you had taken my advice, you would have easily more than doubled your investment in gold and taken over a 520% profit on silver. It's still not too late to get into gold and silver but a price correction is coming so wait a bit.* There will be no price correction on food. Stock up now, while you can. 

I wrote that a price correction was coming in silver and, like a miracle, silver dropped 10% in value about 2 hours after this was posted. I bragged about that timing by adding this comment:

*Note: A few hours after the posting of this article (check the dates and times) the price of silver dropped almost 10%.

Nevertheless, one reader seemed to want to nit-pick and wrote: 

Of course, the fact that you were also screaming for people to buy just a week ago at around $49 near the top of the parabolic move is mighty impressive, too.

This reader was referring to Buy Silver at $1 Dollar Over Spot Price but Buy it Right Now! an article which I posted whereby I was recommending to people to take advantage of an error on Perth Mint's web page. They were selling silver at $1.13 over spot price. I defended my position by writing:

I was pointing out that I had found an error on Perth Mint's web page that was still selling silver at a mere $1.13 dollar over spot price. The title of the article is: "Buy Silver at $1 Dollar Over Spot But Do it RIGHT NOW!" That's pretty simple to understand what the sales point was there, isn't it? It's not about current price, it's about buying and cutting the sales margin you have to pay. The point was the price over spot! I also mentioned that they would correct that error by morning, which they did. 

That reader got mad and said something like (I'm paraphrasing): 


"(A few dollars dealer margin doesn't matter!) Which is more expensive, a $49 dollar sale with a $1 dollar margin or a $45 dollar sale with a $3 dollar margin?"


What this person fails to realize is that he is considering this from a foreign perspective and with 20/20 hindsight. Of course total cost must be considered. That's why my advice is right and his will always be a day late and a dollar short.


A) No one knew that the price of silver was going to drop to $45. It could have just as well gone up. 


B) With that, I told people to buy at the $1 dollar margin. Because, even at the high of $49, a $1 dollar margin is unheard of (unless you buy 1,000 at a time).


C) But I knew for a fact, that a $1 dollar dealer margin is a steal that cannot be matched a protects me from a, say, 8 ~ 10% price drop when you consider that others will charge $5 dealer's margin on a $49 dollar purchase.   

D) At $49 with a dollar margin (in obvious error) I told people to buy. After the site in question found their error and deleted it, thereby killing any opportunity to buy at a $1 dollar dealer's margin, I told people to hold off and not buy. Why pay a 10% margin on silver when I thought the price of silver was pretty high?


E) Buying at $49 with a $1 dollar margin is $50. Anywhere else was selling at $54. I tell people to buy at the cheaper price and somebody thinks that is bad advice?


F) If I could predict the future, I wouldn't be buying precious metals, stocks, or commodities, I'd be at Vegas on the Roulette wheel. This reader criticizing my advice with hindsight is, like I said, either disingenuous or dishonest. Hindsight is 20/20.


G) Of course, why I get irritated at some people for making frivolous comments about what I write is that there are some people who do take my advice to heart and I don't think they like it - nor do I - when others make out-of-context remarks attacking my money advice. Some of us have families and I, for one, do take this stuff very seriously. You'll also see below where I do put my money where my mouth is. 


Now I will demonstrate to you why, even after the 10% drop in silver prices, that my advice was pretty good advice for people living in Japan who might have an interest in buying silver in small sizes (even though I have always recommended buying larger than 28 kilogram silver bars).

Some reasons I recommended buying the silver at $1.13 over spot price because:


1) Silver had gone down for three days in a row. No one knows if it will go up or down the next day.


2) One thing we can be absolutely sure of is that the regular price over spot for silver recently is anywhere between $3.50 to $5.00 per ounce over spot. Usually buying one ounce at a time will cost you about $4.65 ~ $5.00 an ounce dealer's margin (that is the huge  difference -and deciding factor - between buying now and waiting in this case).


3) It is a remarkably safe bet that, even though you won't know if tomorrow's price is higher or lower, you know you won't buy silver again at $1.13 over spot. 


4) At buying with the usual dealer's roughly $5 dollar margin, as compared to a one dollar margin, you could handle a roughly 6 ~ 8% drop in price and still make out fine. 


Now, let's examine the numbers and bottom line in my advice. You be the judge.

The silver price on 04/25/11 according to Kitco was $45.97. According to Heraeus Silver Spot Price, the high for that day was $47.60.

The price that the Perth Mint was selling on their web page was $46.82 Australian Dollars (AUD). $46.82 (AUD) was about $50.19 (USD) on April 25, 2011. That means a one ounce silver round bought at a US dealer on that day would have cost you about $55 each!

Since this day, and the posting of my article about stocking up of food, water and precious metals, the price of silver hasn't done well. On the opening of May 1, 2011 (May 2, Japan time) the price of silver collapsed 10% in the first 15 minutes. Within two hours of my blog post warning people not to buy as a correction in silver price was coming. This was the point that got under the feathers of my attacker. 

I had just told people to hold off on silver as I expected a drop. When it dropped, I crowed about it. He was angry.

This guy totally misses the point. I am talking about silver buyers in Japan, not the USA. For USA advice, read your local investment adviser's page.

I was talking about cashing in on a dealer error whereby he was making a mistake on calculations about dealer's sales margins. But let's look at the facts.

In spite of all that very bad news for silver, the damage was not so bad to silver buyers who follow my recommendations in Japan. Here's why:

Take a look at the chart below that shows the silver prices for yesterday May 3, 2011. You can see that a 1 ounce round sells in Japan for ¥5145 each.  

CLICK ON IMAGE FOR LARGER VIEW

The chart below shows what ¥5,145 yen is in USD. It comes to $63.47 (about). 

CLICK ON IMAGE FOR LARGER VIEW

The price of silver, per ounce, at this very moment is $41.30

CLICK ON IMAGE FOR LARGER VIEW

I'm even giving and advantage in calculations to the current date. At the time of the writing of my article, the price of silver was nearly $2 dollars an ounce higher than it is now (important to remember as my point of buying the silver 1 ounce rounds had to do with price over spot). This means that, even with this drop of over 10%, the margin over spot price, if you bought 1 ounce rounds in Japan, the dealer margin mark-up would have been about $22.17 each 1 ounce round!

You folks in the west might find this unbelievable but that's the way it is in Japan. Silver 1 ounce rounds command a massive markup margin in this country. I recommend buying larger than 28 kilogram bars from Tanaka in Ginza. 

But when you:

1) Don't have an extra $40,000 (USD) laying around; and you believe that silver will continue to rise; and you want to buy small amounts; and you want to take the advice of someone who has shopped and compared; then you know that's you might want to buy overseas. 

2) If you decide to buy overseas, you know that you cannot economically order just one 1 ounce coin. I've written before about ordering at least 15 to 20 at a time (to save on shipping, taxes, etc.) 

3) Understanding #2 above, and the fact that no one knows whether or not the price will rise or fall the next day, but we can recognize an accounting and Internet error that is only charging $1.13 over spot, then you can surmise that;

4) Jumping on the $1.13 over spot is not "just saving a dollar or two" but equals savings of anywhere between a minimum of $50 ~ $100 dollars or more depending on the buyer's order (I think, you'd have to be foolish to order under 15 rounds). So, while you folks in the west think the margin of a dollar or two is no big deal, that's only because you are completely unfamiliar with how things are done here in Japan. The price difference in my case, when ordering a "large" amount overseas, must be considered accounting for dealer's margin.

5) Westerners might think that a "$2 ~ $3 margin doesn't matter" but that is just plain foolish. It matters a lot. Where do you buy items for $48 and do not care if the dealer charges you a 2% margin (as in $1.13 per unit) or $4 dollars or more per unit (8% ~ 10%)? It is ridiculous to even think so for a moment. I hope the people who do think this way are not in charge of company finances. 

6) A dollar here, a dollar there, they add up! Especially when we are talking about the sales margin on dozens and dozens of these items.

Had you ordered, say, twenty-nine one ounce rounds from the Perth Mint like I did (enough to fill one silver round coin tube with seven more to top off another that was partially filled) during that short window I recommended; and with the price of silver dropping to today's level, here's where you would be standing right now:

Twenty-nine one ounce Koala silver rounds including handling, taxes and shipping by FEDEX to Japan was ¥126,195.32. That comes to a price of ¥4,351 yen each silver one ounce round. 

Putting my money where my mouth is. Here is a screen capture of my order of twenty-nine one ounce silver Koala rounds from Perth Mint made on the day in question.

And, as I wrote in the blog, it was obviously a mistake on the Perth Mint's part. I made the prediction that they would find the error and remove it first thing the next day. They did. And that item is not listed on sale even now, almost ten days after my initial post pointing out the opportunity to buy. For proof of that, see the below and the web page selling these items (though I do expect that the 2011 one ounce Koala's will be back soon at a much heftier price):

CLICK ON IMAGE FOR LARGER VIEW

Screen capture of Perth Mint's silver Koala rounds page a of 10 am on May 4, 2011. Note that there are no  2011 one ounce Koala silver rounds available at Perth Mint website - or even listed. So even if you did want to buy them after the price drop, you can't. They are no longer on sale.

Now, let's look at the price of silver in Japan, if you bought those same twenty-nine silver one ounce rounds at today's price in Japan, you'd have paid ¥5,145 yen each (they were ¥5,485 on April 25, 2011). That price includes dealer's margin. That total would come to: ¥149,205 + tax. You'd have ultimately paid ¥156,665 yen for twenty-nine rounds.

If you took my advice and bought, when I pointed out the opportunity, like many of you wisely did, you would have spent ¥126,195. 

The bottom line is that, even with the recent 10% drop in silver prices, had you listened to my advice, you pocketed for yourself about ¥30,000. Thirty thousand Japanese yen is about $370 (USD). How many silver one ounce rounds could you buy with an extra $370 in your pocket? Even at Japan's outrageous markups, you could have bought at least 5 one ounce silver rounds for that money. That is a fact. Not prediction.

Yes, there are other places selling silver now that might be cheaper than the price I mentioned before the recent silver drop. But no one can predict the future. Anyway, folks, when you find a dealer selling a product at a mere 2% markup against other dealers that are taking 4 to 5 times - or more - that amount. That is money in the bank. Take the deal when you can get it. No one can predict the future.

I cannot control tomorrow's prices, but I know when I find a steal and a dealer making a mistake.

Even with the price of silver dropping 10% recently, if you bought the silver I recommended at Perth Mint on April 25th, 2011 you still made out pretty well as all buying of any equities, stocks, or precious metals comes with a risk.... My recommendation greatly softened your risk of a downside by cutting out a huge part of it.

Anyone who doesn't recognize this shouldn't be buying precious metals or any other investments for that matter.

The bottom line is that dealers are charging anywhere between $3.50 ~ $5.65 margin per silver ounce. In most cases, you get only the $3.50 margin if you buy more than 1000 units. I had found a place that was selling small amounts for $1.13 over spot. If you capitalized, you did well and cushioned your fall on silver's recent drop. The difference between $1.13 and $5.00 is nearly 400%. That's a big deal!

A few dollars does matter greatly especially when you are talking about a 2% dealer's margin or a 10% dealer's margin. A 2% sales tax would be welcomed by most people - or at least, not grumbled about by the majority. But a 10% margin (sales tax) would be fodder for huge public grievances.

Only a fool thinks otherwise. Fools and their money soon part ways.

In investing there are no sure things, but when you find a huge error in your favor and it's a sure thing, you'd be wise to take it.

-----

PS: The recent silver price drop and drop in precious metals represents a buying opportunity. I strongly suggest that if you only buy small amounts, that you buy gold. As gold has a very small dealer's markup in Japan. In Tokyo? I think Tokyo Kikinzoku Jiganten in Okachimachi is the best place.

If you buy silver, try to buy only 28 kilogram bars from Tanaka in Ginza. Understandably, most people aren't walking around with $40,000 in the pockets... or the rest of us, there is other ways. Read this. 

Writing My Own Blog Comments!?

"You have enemies? Good. That means you’ve stood up for something, sometime in your life." - Winston Churchill

I just had one of the best laughs I've had in a long time. Thanks to a reader. I think this guy might be pulling my leg and is hilariously funny. If so, thanks! One the other hand, he could be doing too many drugs to be having a logical thought... Which, in my sick, cynical mind could also be too funny! Read on!




This guy actually accuses me of writing my own comments on my blog! Seriously! My comment section is full of "Anonymous" people insulting me, calling me, "Sh*thead!" (worse) etc., etc., or threatening that they will stop reading my blog (besides the really bad ones full of profanity insulting other reader's who write comments that I have to delete everyday!) and this guy accuses me of writing these comments? Now that is a new one!


Anyone who blogs knows that it's hard enough forcing yourself to write stuff for your blog everyday, do we also have to do all the reading and commenting too? Dude! You are kidding, right? If you are, I need to buy you and beer and we can have some laughs.

NOT A PAID ADVERTISEMENT:

On the other hand, and quite off the subject, I assure you, some people really should look into that rehab plan they offer in the neighborhood.... Try it. Rehab is not so bad. I even wrote about it years ago at Lew Rockwell.


You can tell the truth about yourself when you own your own businesses and are 100% self-employed.


Funny thing about self-employment and owning your own business; they sure do take up a lot of one's time. Let me brag; I own not two, but three businesses that, while small, still employ 9 people full time and several part-timers. (It's great owning your own business... I wish one of mine would make some money someday!) One of the businesses is expanding (a rough time to do so, but expand we will). And, on top of that, I write for Lew Rockwell and others; religiously spend 30 minutes time everyday with my 7-year-old reading books with him (we have no TV and he jumped from 1st grade to 2nd grade mid-year and I expect him to jump to 4th grade next year); I go to bed at 8:30 pm every night (get up at 3:50 am or so) do a bunch of work before everyone else wakes up; read books everyday; of course I  actually have to actually go to work and do something. 


I am also a member of the school PTA and am preparing to be vice president of PTA in September (if they would accept a poor father like me). I run my own and host charity events, shoot charity videos and produce videos productions and besides that, I cook breakfast for my wife and son everyday and cook or go out to dinner about 5 nights a week with family and friends.


Not to brag, but I am a great cook too.... 


And, on top of all this, I still find the time to pound my pud at the computer like 97% of all guys have admitted to doing in the past - the other 3% are liars.


Here's are my blog stats. I am proud of them and thank all my readers. I don't post stuff like this to brag (oh, well, yeah, there's some of that too) but to show you the silliness that bloggers have to put up with. I can't believe that other bloggers don't get the same sort of nonsense from readers. Any other blogger's who care to share some fun stories? Maybe we can join together to write a 50's style horror book and call it something silly like, "I was a Teenage Were-Blogger!"

CLICK ON IMAGE FOR LARGER VIEW

This blog started in mid-May of 2010. This chart is from April, 30, 2011. Thanks to good readers like you folks, the monthly trend has gone very well. I've shown this to outside company president's and executives and they were floored at the growth rate. Thank you.

CLICK ON IMAGE FOR LARGER VIEW

The above is a screen capture of this blog's performance taken just a moment ago. The readers over the last two days are actually down over the trend of the last two weeks. I attribute this to the fact that Japan is now in the middle of Golden Week (a 10-day holiday that started last week Friday). As you can see, coincidentally, my monthly readers numbers were 135,000 as of 6 am this morning. That is an average of 4,500 readers per day. It will be higher by 8:59 am, the cutoff point for the day. 

I love this blog (of course, it's mine!) I have no advertising so I can write whatever I like! I really do wish there were more intelligent commenting, but, I guess that takes several years to foster. I thank all readers and all supporters. 

Once again, this post's purpose is to: 

1) Totally destroy some nonsense comments by people (or should we say "Comment-tormentors") make to all blogs and have made to this very blog.

2) To show other bloggers that I get this crap too and can't imagine that other's don't also.

3) To ask that we bloggers (seriously) get together and consider a publication (or blog posting) that deals with this sort of subject - it could be hilarious.

4) To show blogger's that they shouldn't give up if, after three months, they get few readers. This is a high mountain to climb and a consistent effort is important. 

5) Blogging is not a popularity contest. Write what you like and damn the torpedoes (and the clowns!)

Remember what Winston Churchill said above. I would recommend that bloggers remember that, when they get silly or insulting comments that they recall that far too many people have much free time and are doing the usual "surfing" (Do they still call it that?) Keeping that in mind I gather that means that these people have much free time. You re,member what the old saying was about free time and idle minds?

On the other hand, some readers need to read more books. Judging from the quality of many comments I get (usually ones I delete so that reader never sees them), I think too many readers have some other, more pressing matters to attend to first before they can patiently sit down and read a book and a have serious, straight and logical thinking process.... But, then again, I don't think bonging makes for a good reading partner.

Like I said, a funny or great idea when you are high is usually not all that great or funny when you are sober.

UPDATE: One more reason why women are so much smarter than men! I mentioned this subject to my wife this morning. She said, "Well, you have to expect this. As you get more and more readers to the blog, you will, of course, get more and more crazies." That's true. I know from my experience at radio & TV, that people with free time are more likely to respond to on-air promotions. 

She added, "The world is not filled with serious level-headed successful people."

Damn! She's right. See? Women are smarter then men. I just spent 15 minutes writing a few dozen paragraphs about this nonsense and my wife sums it all up in 3 sentences. 

Now you tell me if men are smarter then women! (and ask why I cook breakfast and dinner!) 

The International Man and the Greater Good of Government

Blogging for yourself and blogging for others has drawbacks but it also has many advantages. I think that if you are going to blog successfully, you need to both blog for yourself and you need to blog for others.


I blog because I like to (that's why you see no advertising on this blog - and if I promote a book, you'll see that 100% of the sales commission goes to my favorite blog: Lew Rockwell). But, blogging for yourself can be very lonely (and frustrating) so I highly recommend doing both. 


Through blogging at other sites, I am able to get a tad bit of recognition. So far, from past blogging on Lew Rockwell, I was quoted on Mish Shedlock, Max Keiser and now the Casey Report has shown interest in my scribblings.

ROLLING STONES - WALK BEFORE THEY MAKE ME RUN

Many readers interested in politics and economics will be familiar with the Casey Report issued daily by Doug Casey and Casey Research. I am a subscriber to their excellent news report, the Daily Dispatch, and read it religiously everyday and have for years. 


I have taken their investment advice to heart and can actually say that I have done very well with it.


Late last year, I was contacted out-of-the-blue by David Galland of the Casey Report and asked if I would contribute to a new publication that they were planning called, The International Man. The International Man is billed as the "Private Global Intelligence Network." I gathered that the report was focused on ex-pats who had left the USA or UK years ago - or wherever - and gone overseas to make a living. The International Man was designed to disseminate good information to those who were thinking about doing the same thing due to the dark economic clouds gathering on the horizon over many of the world's economies.


The International Man has great information about jobs and business opportunities, getting visas, buying property in Argentina, etc., etc.


Of course I was thrilled that Doug Casey and his crew even knew who I am and flattered that they'd want to use my writings. I guess they want me to write new articles for them, but, in the meantime, they asked if they could republish this article I wrote a while back. Of course I said, "Yes!" It came out online and through their vast email network on May 2, 2011. Here it is:

Date: May 2, 2011

Today we welcome a new contributor to the IM family, Mike (in Tokyo) Rogers, an American expat who has lived in Japan for more than 25 years. With a sharp wit and a strong libertarian streak, Mike is perfect to bring us today's featured article.


While slightly dated, the lesson here is priceless. Enjoy.


Government: It's for Everyone's Good
By Mike Rogers


I briefly met an old friend the other day at Narita Airport. His name is Frank. He was on a brief stop-over before being reassigned to China.


Frank is a half-Chinese American friend of mine who I've known for years. I guess we were room-mates in our university days. I don't remember things from those days too well; I was high all the time.


Frank is a very good guy. He's straightened himself out and doesn't drink or smoke anymore. Got married and has a beautiful daughter. He's been a true friend and taught me much.


One thing he taught me was that the government has a duty to look out for the welfare of the public at large. Frank opened my eyes and explained to me why, for example, non-smokers rights trump property rights when it comes to the government outlawing, say, cigarette smoke in privately owned establishments such as bars and restaurants.


Frank and I fought over this repeatedly over the years. I was convinced that the owner of the property, bar, restaurant, what-have-you, had the right to decide if his establishment allowed smoking. I reasoned that if customers didn't like it, they could go to another establishment. I even pointed out that, in Japan, we don't have any laws against smoking inside privately owned businesses; yet we have smoking and non-smoking establishments. A good example that quickly comes to mind is a coffee shop called Starbucks. I think you Americans may have heard of it. Starbucks is no smoking. The other side of the coin is a chain called Doutor Coffee. Doutor allows smoking. Some larger Doutor coffee shops even have smoking and non-smoking areas. Can you imagine? How could privately owned businesses come to this when left to their own devices? Must have been a mistake.


I don't go to Starbucks as Doutor is much cheaper, but don't let my preferences influence your thinking.


But, even with this evidence, Frank showed that I was wrong. Frank says that the government has a responsibility to guard the public health and do what is in the public good. He says, if it weren't for the government, some people would be, say, opening pig farms in our backyards and stinking up entire neighborhoods, or doing dangerous things like driving without seatbelts. The government must protect the public. This is why we have seatbelt laws, motorcycle helmet laws, anti-pig farm laws, etc.


Anyhow, Frank says that the rights of non-smokers trump the rights of property owners. I said that he had no right to enter a bar, just a privilege. He claims that there is a right and that the government is here to protect his rights. He says that the government is here for our own good; to protect us and nurture us for the good of the whole.


I asked Frank that, if we were so worried about the public health, say, some guy wiping himself out in a car crash and becoming a burden on society, then shouldn't we also worry about infectious diseases? Why don't we pass a law that says it is illegal to go outside in the rain without a raincoat and umbrella? You'd sure hate to have someone catch some new type of flu and be sneezing all over you. This sounds like some good clean common sense to me.


Frank laughed and told me that this kind of thinking was silly and absurd. He stressed once again, that the government is here for our good and the good for society as a whole; they don't do frivolities. The government is here to decide for us what is best for society. The government will only do what is best for all.


Well, it became time for Frank to board his plane. We both hugged and waved goodbye. I'm sure Frank will enjoy his new work assignment. Just before he walked through the doors to board the plane, I handed him a love letter to show him just how much I appreciate all he has taught me. I, for one, can now rest better knowing that the government is here for our own good. I'm sure Frank will think the same thing I do when he reads the letter.


What was in the letter? Ah, not much. Just a copy of a news article from the town he is moving to. It was some common sense about how the local government is forcing people to smoke and fining them if they don't smoke in an effort to boost the local economy; of course, for the good of the whole. Sounds like a great idea.


I'm sure Frank will enjoy his new town and his new government-sanctioned habit. What with it being for the greater good and all.


I highly recommend reading the the Daily Dispatch published by Casey Research. (By the way, Casey Research, also had level-headed reporting on the nuclear accident in Japan - one of the few places - besides this blog - that actually did. You can sign up for the Casey Report's free daily newsletter here. And I have been enjoying the International Man very much. You can sign up for that free newsletter here.


In 99% of the cases, you have to pay for the extremely high-quality of writing that is featured in the Daily Dispatch and the International Man. Try them out and see if you like them. What have you got to lose? Where else can you get such high quality reading daily, delivered to your email box, for absolutely free?

Japan's Financial Armageddon is Coming in 60 Days?

Is the financial Armageddon coming soon? Many people are now warning that it is inevitable. I agree. It may not be in 60 days, but I think it is coming Autumn 2011. I'm not sure, but things are lining up poorly so I think you had better get prepared. This is a warning.


People should listen to my warnings. I warned people in October of 2008 to buy gold and silver and to stock up on food (click the links for proof). At that time, gold was $724.08 an ounce (today gold is $1562.30) and silver was $9.11 an ounce (today silver stands at $47.40).


If you had taken my advice, you would have easily more than doubled your investment in gold and taken over a 520% profit on silver. It's still not too late to get into gold and silver but a price correction is coming so wait a bit.* There will be no price correction on food. Stock up now, while you can. 


*Note: A few hours after the posting of this article (check the dates and times) the price of silver dropped almost 10%.


After the big Tohoku earthquake and tsunami, when the stores shelves were bare for a week or so (and no one knew at the time how things were going to turn out on the food and water situation) my family was fine; we had 6 months of food and water, enough for 5 people, stocked up and ready to go. When people panicked and ran away from Tokyo or when they were fighting for parking spaces at the local grocery store, or fighting for bottles of water, I only watched and shook my head in disbelief.


How can people be so gullible and foolish? How can people be so negligent and irresponsible not to be prepared?

The repercussions of the Japan earthquake and tsunami followed by the nuclear accident has created shock waves throughout the world. Throw that on top of the soon-to-come collapse of the Euro...

Either preceded or followed by the collapse of the US dollar.... 

A lot of people predicted an economic calamity after the earthquake and tsunami. But, now some are saying it didn't happen. The fact is that the earthquake and tsunami are blips on the screen in the overall picture of the world economy.... But taken together with the information contained in the videos above, and they stat to cause one to consider.


Consider the Euro zone and the US dollar - along with Japan's aging problem and public debt problems - in the context of the repercussions for the business world of the Japan disaster. For a small example of how the Japan calamity is affecting foreign nations and companies, consider the fact that Japanese cars manufacturers have closed many of their plants as they are unable to obtain parts. 


On initial inspection, this doesn't seem to be such a problem. But these plants, and including Japanese plants in the USA, employ tens of thousands of people. Now, what about the satellite businesses that deal with cars? The list is long, but here's two easy ones; Tire makers or service stands? What about other businesses that cater to auto worker employees? How about them? Home manufacturers, clothes makers, shoes manufacturers, the entertainment sector, banks, credit card companies, etc., etc.? 


Now, consider the fact that nearly ever company must file their quarterly business report, well, every quarter. That means that the earthquake occurred on March 11... Let's just use March 30th as an easy calculation... This means that all of these corporations will show the effect of the Japan disaster - added to an already overloaded world economic crisis - and you just might have one more straw added to the camel's back... Could it be the straw that breaks the camel's back?


I don't think so. But throw on the extremely high probability of a Greek, Irish and Portuguese default on public debt and the ground swell rumors now abounding that Spain and Italy are next ( and are "Too big to bail") then you have a serious problem.


Let me give you fair warning again. Especially if you live in Japan: 


1) Store up enough water for at least 2 months (6 months preferable)
2) Fill your bathtub with water every night (if water stops you can use for cleaning)
3) Today or this week, buy at least 2 months of canned food (6 months preferable)
4) It is still not too late! Start saving money every month by buying gold and silver. If you have some savings, take 33% of it out of the bank and buy gold. Take the other 33% and keep it at  safe place at home.


It looks like we are headed for some really rough times. Better be prepared to stay out of the way.


If you want to find the best places to buy gold and silver, search those keywords on this blog's search function. I've warned people so many times up until now, that I'm tired of linking to it over and over.


Will people pay attention this time? If history is any guide, the answer is "No!" 

Free Sunday Matinee! Samurai Film: Zatoichi - the Blind Swordsman

Recently, due to the earthquake, tsunami and the subsequent nuclear accident at Fukushima, this blog (and everyone else) has been completely preoccupied with those events. Several regular readers have asked that I start the free Sunday Japanese cinema again.

You asked for it, you got it. Here is a well known story in Japan. It is called Satoichi - the Blind Swordsman. Wikipedia says:

Zatoichi (座頭市 Zatōichi) is a fictional character featured in one of Japan's longest running series of films and a television series set in the Edo period. The character, a blind masseur and swordmaster, was created by novelist Kan Shimozawa (子母澤 寛 Shimozawa Kan). This originally minor character was developed for the screen by Daiei Studios (now Kadokawa Pictures) and actor Shintaro Katsu, who created the screen version. A total of 26 films were made from 1962 to 1989. From 1972 to 1974, a television series of the same name was made. One hundred and twelve episodes were aired before the "Zatoichi" television series was cancelled.

Film number 17 of the original series was remade in America in 1990 (by TriStar Pictures) as Blind Fury, an action movie starring Rutger Hauer.

Today, we will watch, in full the 2003 remake starring Takeshi Kitano directed by Takashi Miike. Satoichi is a much loved character in Japanese modern day folklore and this samurai film is quite possibly one of the best of the modern samurai movies. It has a quite bizarre ending too! Enjoy!

Zatoichi - the Blind Swordsman 1/13

Zatoichi - the Blind Swordsman 2/13



Zatoichi - the Blind Swordsman 3/13



Zatoichi - the Blind Swordsman 4/13

Zatoichi - the Blind Swordsman 5/13

Zatoichi - the Blind Swordsman 6/13

Zatoichi - the Blind Swordsman 7/13

Zatoichi - the Blind Swordsman 8/13

Zatoichi - the Blind Swordsman 9/13

Zatoichi - the Blind Swordsman 10/13

Zatoichi - the Blind Swordsman 11/13

Zatoichi - the Blind Swordsman 12/13

Zatoichi - the Blind Swordsman 13/13

The Value of Silence at Business Meetings - the Samurai Way

"Better to remain silent and be thought a fool than to open ones mouth and remove all doubt." - Unknown.


"Those who don't know say that they do. Those who do know say they don't." - Za Zen Buddhist saying




I often am reminded of how much some people like to hear their own voices at meetings. Not me. If I can, I want to go through meetings and be completely silent unless I am absolutely sure that I understand all facets of the problem(s) being discussed and there is something that is urgently pressing that I feel that I must say....


To be quite dramatic... It is like the way a samurai would do things... They'd shut up unless they have something important to say. In my case, I shut up because I don't want to sound stupid.


In Japan, even from long ago, it is said that the most intelligent people say little. A zen quote goes like this: "Those who say they know, don't. Those who do know, don't say."

Hopefully, against all odds, and in spite of myself, what I did have to say at a meeting, when I finally said it, would be relevant.

Otherwise, I want to be like samurai. 


According to ancient folklore, the samurai weren't big talkers. They didn't say too much.


Perhaps they kept their mouths shut because they already knew the score or perhaps they kept silent because they didn't fully comprehend the subject at hand. Or, perhaps they kept quiet because they knew that f they talked, they'd say something dumb. No matter what, it's always a good idea not to "show your hand."


Keeping your mouth shut and only speaking when absolutely necessary seems to me a good way to be.


-------------


NOTE: Many regular readers have been asking for more great Japanese cinema. We haven't had any since the earthquake and tsunami, but here's some of the best scenes from Zatoichi a 1989 samurai film about a samurai who is blind. This is an awesome film. I will search for an English subtitled version and place it online if I can. Until then, enjoy!

SATOICHI