Congress Ulterior Motives

Another Hurdle for U.S. Business?

By James A. Porter

I know that this doesn't seem to relate to gold, but just please read on and see...

The so-called "National Health Care Legislation" bill passed recently by Congress, had buried deep within the 2,400+ pages a rider which mandates the reporting to the IRS purchases of "goods and services" which amount to $600 or more. The superficial effect of this bill is to gain revenue from sellers profits previously not readily available to the IRS, and also to track the wealth/accumulation of U.S. citizens who invest in commodities such as gold, silver and platinum. This measure proposes to increase potential government revenue in the form of future taxation of profits from buyers who subsequently sell these assets. Investors have traditionally used precious metals as a hedge against inflation and as a source for retirement annuities and have been relatively immune to paying taxes on profits from the sale of these assets when they grow in "value". This bill is due to be implemented in 2011. Even the U.S. Government (Mint) grabs a piece of the action in sales of bullion coins, so I suppose that even they are going to have to send out a ton of 1099-K's.

The arbitrary $600 limit stated in the bill doesn't mean that sellers will be required to report only individual purchases over this amount, but must report to the IRS on a special new and improved 1099-K form ANY ACCUMULATED PURCHASES WITHIN A CALENDAR YEAR THAT EQUAL $600 OR MORE! The controversy and resistance to this bill's potential resulting calamity stems from it's requirement of small and large businesses to keep track of each of their customers' TOTAL purchases within a calendar year and then report such total expenditures to the IRS on the new 1099-K's. For some medium to large businesses, this will mean many thousands, to perhaps trillions of 1099-K forms, and the associated tracking of this information in databases and on hardcopy printouts. Is this GREEN? I thought that our Government was supposed to support "paperwork reduction", what happened? Multiply the millions of potential new 1099-K forms to be sent out in triplicate by the hundreds of thousands of small to large businesses and you have QUADRILLIONS OF PIECES OF NEEDLESS PAPERWORK that we have managed to get along without so far to run things here in the U.S.! I am afraid that the unwitting result of this legislation, if enacted, will have the opposite effect than that which was intended. I feel that domestic consumers of gold, silver, platinum will simply go to FOREIGN PROVIDERS of these commodities, who require no such reporting of their financial transactions to the U.S. Government.

Many will choose foreign providers to avoid the auditing of their purchases for future taxation by our government and the IRS. This is yet another instance of "outsourcing" of goods and services from U.S. providers to more attractive foreign countries, some who are actively engaged in terrorism, war and drug traffic, which are destroying our way of life as we have known it! Has Congress considered this possibility? Most have not read past the first couple hundred pages of the 2,400+ page "Health Care Bill", and who can blame them? Lengthy bills and measures squeak past in Congress often for this reason, they are just too long to read in their entirety, and the "aides" employed to read them for busy representatives sometimes have their own hidden agenda to slant or hide the facts when they summarize the contents of these longwinded propositions for their Congressional employers.

After World War II, Japan had the unfortunate reputation of making shoddy and substandard quality consumer goods, and America was "on top of the heap" when it came to almost everything manufactured; My, how things have changed! American manufacturers are now struggling with bankruptcy, and depend on foreign-owned businesses (especially Chinese and Japanese) to employ many out-of-work people here in the United States. Of course there are the exceptions, such as Ford Motor Company, but because of Ford's and many other troubled U.S. companies' indebtedness to the banks who bailed them out of their financial troubles, one has to ask; "Who really owns the company?"

Congressman Dan Lungren, representing California's 3rd District, introduced opposition to the hidden agenda of the "National Health Care Legislation" in the form of H.R. 5141, and quickly gained the support of some 80 members of Congress; THANK GOD for the few with his sense!

Yes our country may be broke, yes we print trillions of dollars in "fiat" currency each year that has no real value, yes foreign interests and Communist Governments own Amerika, yes you are merely an unimportant proletariot supporting the funny hats and costume parties of our elected officials who get to their parties in their own personal 757's at taxpayer expense, yes lobbyists run politicians who run our government, yes the President we elected cannot live up to the promises made, yes brave men and women are dying in countries so far from America defending our freedoms, but why worry? We can stil watch the game with a beer in hand on Sunday.

If you have never written a letter to your Congressman or Congresswoman, now is the time to do a little online research and express yourself. The voice of the people is what always made America great in our past, why let us now become known as the "apathetic generation".

"Government is not reason, it is not eloquence -- it is a force! Like fire, it is a dangerous servant and a fearful master; never for a moment should it be left to irresponsible action." Does this sound reactionary or revolutionary? It should because it was said by a well-known revolutionary of his time, George Washington.

Thomas Jefferson,was essentially the architect our Constitution. One of Jefferson's closest friends, Benjamin Franklin, had amazing foresight when he said, "Our Constitution is in actual operation. Everything appears to promise that it will last. But in this world nothing is certain but death and taxes." I feel he would be spinning in his grave if he knew how far out of control our government has become in regard to irresponsible taxation.

No other Government has honored their National Debt except the good old gullible United States. Now that we are indebted to those same countries who owed us so much after World War II and had their debts dismissed, I think it is time for us to consider becoming slackers like them! What thanks do we get for everything we did to help them in the past? Will they "dismiss" our debts? Not likely!

The Weekend Gold Prospector

Yearly flood waters dislodge thousands of ounces of placer gold, crystalline gold, nugget gold and free gold from your local canyons and hillsides.

With a few simple tools costing less than $100.00, you can have a wonderful time enjoying the natural beauty of the outdoors, while at the same time pulling gold right out of the ground! The United States and many worldwide locations are rich with a constantly replenished source of gold wealth, just waiting for the person with the right tools to find and "harvest" it.

Metal Detecting

There are as many different types of metal detectors as there are styles of metal detecting, but if your search is for gold nuggets, I suggest White's, Garrett, Fisher and Minelab brands to name a few. My personal experience is with older models such as the White's Goldmaster and Spectrum metal detectors, but there are many newer models with improvements and enhancements to make finding gold coins, nuggets and many other treasures a lot easier. Metal detecting is field-proven to find gold and other precious metal nuggets in a wide range of terrain conditions and ground mineralization worldwide. If you are interested in comparing these and many other fine metal detecting units, check out the links to see what's available. You can even find "treasures" in your own back yard. Just remember that some metal detectors can be costly: About $600.00, for a good quality detector.

The basic operation of most gold and metal detectors is the same, although they employ many different sophisticated electronics to achieve the same end results. When the metal detector's search coil is passed over a buried metal target (at a speed similar to a grandfather clock's pendulum), its circuitry converts the reflected signal into an audible rise and fall in pitch or volume as heard usually through headphones. When the search head (coil) is positioned directly over the center of the target, such as a coin or nugget, its signal will sound at loudest volume or at an apex of pitch on the detector's headphone or speaker.

Gold Prospecting Tools

A gold pan can be purchased for as little as $10.00. Most modern plastic and nylon pans have built-in ridges which help to trap gold and other heavier metals such as platinum and silver, with less effort, and with little experience. Plastic gold pans and digging tools make it easier to isolate gold, platinum and silver because they don't react to the metal detector. A good gold pan is tool number one.

Here's a list of other tools that may help you to get started as a "Weekend Prospector":

• Two clean 5 gallon paint buckets.

• A garden trowel. (Plastic is better cause its "invisible" to your metal detector)

• Fine pointed, sturdy tweezers.

• A fine point camel hair paintbrush, with a tip about 1/16 inch in diameter and 3/16 inch in length.

• An "eyedropper" or small suction tube.

• An inexpensive magnifying glass or "loupe".

• An airtight medicine bottle, small enough for a shirt pocket, clear if possible.

• A 35mm plastic film can, with lid.

• An old pair of tennis shoes or water shoes.

• The last item in the "inexpensive" list is the most expensive, but isn't absolutely necessary to find gold. A quality lightweight and "packable" sluice box can be purchased for as little as $95.00. Remember, having the "right tools" will make your efforts more rewarding.

Panning For Gold

Are you ready to try stream panning? Most U.S. Forest land is still open for the careful use of the people, but check with your local prospecting shop first for any possible regulations or limitations. Gold "sniping" or hunting is allowed in most National Forest land without permits or fees, but it's always best to play it safe, especially within the National Parks where sniping is NOT ALLOWED AT ALL. Get a map and ask the owner of the land, whether it be the U.S. Forestry Service or privately owned land, for permission, regulations and limitations (if any).

Put on your old pair of sneakers or waterproof shoes, because you're going to get wet! It's mighty slippery walking on those algae covered river and streambed rocks, so please be very careful!

As you scan the terrain looking for likely spots to prospect, consider your impact on the land by always leaving your site the way you found it or cleaner! Along with my "treasure bag", I always carry a "trash bag" for packing out pop tops, tinfoil, cans and other souvenirs of modern man's "progress".

Look for a bend in the stream where the current isn't too strong, search along the inside curve of the bend, paying close attention to areas of black sand. This iron ore indicates where heavier metals tend to accumulate. An old 5 gallon paint bucket, and a garden trowel are perfect for collecting gravel from under the downstream side of rocks and boulders (a well-known hiding place for nuggets).

When your bucket is full of gravel dug from the deepest crevices and pockets, carry it over to the side of the stream to practice your panning skills with one trowel full at a time. Before you toss that big rock out of your pan, take a second short but close look at it. Even pro's have thrown away large nuggets in their haste to work a pan down to fine ore, and once it's back in the stream you have to find it all over again! Besides, if you are a rockhound like me, you will see the beauty and uniqueness of every stone as part of the enjoyment that comes with the search for gold. Near the side of the stream, slowly circulate the pan just under the surface of the water. This action will cause the less turbulent current at the side of the stream to gently wash away the lighter dirt, plant material and sand, leaving the heavier deposits to fall to the deepest portions of your pan. As you break up clods of dirt with one hand, keep circulating the pan and you will soon see that the stream's current does most of the work in separating the lighter minerals from the potential "paydirt", which is the last material left in your pan.
Back home, put a tub of water in the yard (at least twice the diameter of your gold pan), to practice moving lighter material out of your pan. In the stream, the current makes your pan's contents more visible by washing the "clouds" of dirt from your view. This is not the case in your backyard tub, but it really doesn't matter that you can't see the pan through the murky water. Remember: Gold is very heavy, and will always be the last material left in the gold pan.
To practice panning skills, use a piece of lead (fishing weight or bullet) to simulate a nugget in your pan of gravel/dirt. If it makes you feel better, you can paint the piece of lead with gold paint or gold leaf. When you progress in skill, use an ever smaller piece of lead and see how quickly you can "work the gravel down", leaving only your lead "nugget" and some heavier ores (like black iron) in the pan. Remember that gold is heavier than lead, so if you are successful at keeping the lead in your pan, the real gold will be even easier to retain.

Sometimes the gold that you find looks so microscopic that it hardly seems worth the effort. As the old saying goes, "a long journey begins with a single step", so too does a vile full of gold "dust" begin with a single grain. To pick up those little pieces of gold, I have found that a small camel hair paintbrush works well. When your gold and iron ore are worked down in the pan, drain off any water left and use the wet tip of the brush to snag the gold flake (don't worry, it will stick). Then, holding your plastic vile full of water over the pan, immerse the tip of the brush into the vile, using a little agitation if necessary, and watch as the tiny flakes or nuggets drop to the bottom of the vile. An alternative to the paintbrush is an eyedropper or turkey baster to suck the gold up for transfer to your vile.

Here's a link to a very good video about prospecting:

http://www.youtube.com/watch?v=7PciHNVVKI4

Next Time Try a Sluice Box

A sluice box may be any size, but the construction of all sluices is basically the same; A rectangular box of wood or aluminum with the upstream end flared outward to allow the stream's current to flow into the box and across its riffles. The upstream end of the sluice box should be elevated about 1" to 3" above the downstream end, depending on its length.

A "classifier",is a boxlike frame with about a 1/4" screen mesh at the bottom. It can be made to fit exactly on top of the upstream flared end of your sluice box.

The classifier "filters" larger stones from the sluice input, and must be occasionally emptied out as you shovel in more gravel. You can place the classifier on top of your 5 gal. collection bucket to directly filter finer gravels.

Place the sluice box near the side of the stream, in a spot almost equal to the depth of the sluice. Place the sluice parallel to the current, and adjust it's angle by placing stones under the upstream end. Make sure that the current is not too strong, or your sluice will wash away!

A good current will wash the heavier stones across the riffles and out the downstream end, but you should see finer gravel circulating in "eddies" downstream of each riffle. When you have washed about 5 to 10 buckets of gravel across the sluice box, it is time to carefully lift the box out of the stream and put the downstream end carefully into an empty and clean 5 gallon bucket . Carefully wash the sluice with your other bucket full of clear water, concentrating on the sides and keeping the box tilted slightly off vertical so as not to lose any ore. Loosen the riffle screen (carefully), and wash the screen thoroughly before removing it from the sluice box in the bucket. When you have inspected the screen and riffles for any obvious ore, set it aside. Now, carefully roll the "rug" material from top (upstream end) to bottom so that any ore remains inside the rug. Wash the sluice frame thoroughly before removing it from the bucket. You should now have plenty of water in the bucket to wash the rug out. It may seem that you don't have much ore in the bucket for all your efforts, but when you pan out the heavy ore in the bottom of the bucket you will find much more gold than you would with just random shovelsfull out of the stream. When you find any gold, stick to digging in that spot, as gold does accumulate in pockets. When you are rich enough from your finds to afford one, a dredge will speed up the processing of river gravel by acting as a "vacuum cleaner" for the streambed. Commonly, dredges run from about $500.00 and upward, although you might pick a used one up in classified ads for much less. With the proper equipment you can explore mid-stream crevices and under submerged boulders for the heavier and more elusive nuggets that like to hide in midstream.

Know the regulations about the type of gold prospecting allowed before you go to your search site. Public lands belong to all taxpaying citizens for their pleasure and enjoyment, but please try to conserve and keep our natural resources clean and unpolluted, and "PLEASE" be careful with fires.

Is Money A Dependable Commodity?

The U.S. budget for 2010 will be $3,600,000,000,000.00, yes 3.6 Trillion Dollars. It looks more real unabbreviated. Abbreviation tends to make people accept their future tax burden without question, because of the insignificant-seeming lack of zeroes.

President Obama has inherited a huge problem, undeniably the worst financial situation in our history due to the effects of inflation and our dependence on foreign products. The joke after World War II was any product ”Made in Japan”. America is now the joke.

We as a country have lived so long without the ability to make what we need to live our embellished lives, that the tools to do the myriad jobs of manufacturing seem to have all been sold to the ambitious third-world countries to which we are now dependant. The industrial greatness that America has exercised over the last 200 years has dissipated and has been absorbed by the smaller but more success-focused developing countries with the ability to make what we need for a lot less than we can.

Somewhere along the way, we have retired our ability, our knowledge, our genius and invention for the recliner and big-screen TV’s manufactured in Asia; And why not? It is certainly easier to go to Wal Mart and do the week’s grocery shopping than to grow your own corn.

We would rather watch the History Channel documentary on the greatness of America’s “Industrial Age” than go to the laboratory to work on alternative energy sources. Our world-wide competitors provide American TV with plenty of money to hawk their products to the American “recliner class” with calculated efficiency, endorsed and taught to them by the American media executives hoping for a future piece of foreign pie. Advertising; here is yet another skill delegated to foreign future powers, leaving Americans wondering, “Why did I get laid off? Oh well, time to watch the Beverly Hillbillies.”

In a country which has traditionally pointed the finger of blame to any available scapegoat, we are deficient now to spotlight any one person or reason for our current financial woes. Those who blame George W. Bush and his father choose the easy route. After all, “his” war cost us billions each day. But the threat of terrorism, although real and imminent, has been pushed into the recesses of our mass consciousness since 9-11, even more so since Obama’s election. No court or jury will punish those who have gained in our time of financial crises, but instead will exonerate those with enough money to circumnavigate around the legal system through endless appeals and expensive lawyers. No finger of blame can be righteously pointed at any individual as we are all guilty of complacency, of thinking that there is nothing that any of us can do to correct the problems that plague our American dreams. The culpability is ours, each of us, and we must own it before we can accept the responsibility of fixing those problems.



More and more American companies have chosen to move their business to a more tax-favorable location, outside the U.S. Greedy day-traders play short term games by buying low on Monday, only to sell with pennies of gain on Friday. Credit card fans teach their children to buy, without using cash, programs that show how to get free money grants from the U.S. government that never have to be paid back. Immigrants seem to know the “formula” for bilking the U.S. government: Sneak in, pop out a few kids to guarantee residency, receive welfare and food stamps paid for by the rest of us. Banks used “bail-out” monies to pay for extravagant Las Vegas parties instead of helping struggling mortgage payers to make a dependable home for their families. Those banks were already paid off by mortgage insurance companies for the homes that they had foreclosed at top-dollar gains, and then re-sold at half their worth to lower the value of neighborhood homes across America. The only ones able to buy homes now are visiting the same banks, which are now held prisoner by foreign-owned bonds that provide their solvency.

We all wait impatiently for someone else to provide a solution to the problems that plague mankind, but few of us will take the initiative to suggest alternatives to the ones we trust to do all the footwork. When the few who are interested enough to suggest solutions write to their government Congressmen, Assemblymen, Governors and Senators, their interest is sometimes rewarded by a form letter response followed by a prompt direction of their letters to the “circular file” (trash can). Who knows how many viable solutions to our many problems have been handled in this manner.

We all wait patiently in long lines for somebody else to solve our problems. There may be easier and more efficient ways to solve our problems, but we have become accustomed to waiting in line. If all the hours spent by we who stand in lines were instead used to research solutions, the answers to our problems might be more rapidly obtained.

In days past, a promise of payment appeared on paper money that stated an amount payable to the bearer of the note in silver or gold. Nowadays, no such promises are made on money because there is no real value or commodity to back up the stated value on the paper bills. This lack of real value has a dangerous psychological impact on those who use the “money” to purchase daily goods. When we see that the value of the paper we spend has an arbitrary and ever-changing ability to buy the things we need, then the confidence in and dependability of that money is diminished. We should have learned from Germany before World War II, where a postage stamp cost 500,000,000 (Five Hundred Million) Marks. Instead, we are apparently repeating the past mistakes despite the historical knowledge.

When a universally acknowledged commodity such as gold or silver is used to stabilize paper money which is directly exchangeable for those commodities, the economies that used such a system have flourished in past times. The problem today is that when a value is placed on a universally accepted commodity backing our coin and currency, that commodity soon becomes hoarded, and demand for it increases. When the targeted “demand value” is achieved, that commodity is unloaded on the market by its hoarders, and its perceived value which is dictated by “supply and demand” immediately drops. This problem is one reason why America went off the “Gold Standard” in 1933, and the “Silver Standard” in 1965. A copper-nickel standard doesn’t provide the confidence that rare metals have afforded, but nevertheless, it will soon follow gold and silver as a defunct representation of value for the same reasons. If aluminum is used, it will also become a meaningless commodity of perceived value, prone to the same weaknesses of the others. If plastic follows aluminum to represent value in our money, the same ends result. The only way to provide a real and stable measure for our coin and currencies’ value is by unanimous consent. Since promises to pay a note in silver, gold, diamonds, plastic, aluminum, uranium or whatever, causes instability. The only solution is to create a new unit of value that is not tied to any commodity or concrete thing. Our government has adopted this philosophy, and continues to print trillions of notes promising worth based upon nothing but our unanimous consent to back it up. Faith is the new standard for exchange.

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