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The Coming Bear Market: Part II How to Prepare
Issue #492, October 16, 2017

Some Observations on Cemeteries
Issue #Interim Bulletin #491A, October 12, 2017

The Coming Bear Market: Part I: The Myth of Buy and Hold Forever
Issue #491, October 09, 2017

The Market makes New Highs
Issue #490, October 02, 2017

The Importance of a New High
Issue #489, September 25, 2017

A Little Insurance: Wealth, War and Wisdom
Issue #488, September 18, 2017

Some Observations
Issue #487, September 11, 2017

How to be Successful in Your Career
Issue #486A, September 07, 2017

How NOT to Buy a Home
Issue #486, September 04, 2017

This Week in the Market
Issue #485, August 28, 2017

Is the “Trump Bump” Running Out of Gas?
Issue #484, August 21, 2017

Gold is on the Move
Issue #483, August 14, 2017

The Importance of Estimation
Issue #482, August 07, 2017

Buying Art and Collecting: Part II of II
Issue #481, July 31, 2017

Buying Art and Collecting in General, Part I of II
Issue #480, July 24, 2017

Physicians need to be More Forceful: Follow-up
Issue #479, July 17, 2017

Physicians need to be More Forceful
Issue #478, July 10, 2017

Your First “Real” Investment
Issue #477, July 03, 2017

Leasing a Watch: Don’t
Issue #476, June 26, 2017

The Importance of Your Children having a Job
Issue #475, June 16, 2017

The Problem with Medical Student Debt is—the Med Schools
Issue #474, June 12, 2017

Critters and Varmints in your Home and Yard
Issue #473A, June 07, 2017

Leveraged ETFs
Issue #472, May 29, 2017

Leasing a Vehicle: Don’t!
Issue #471, May 22, 2017

Issue #470, May 15, 2017

More on Buying Jewelry
Issue #469, May 08, 2017

Buying Jewelry: Gold, Diamonds and Pearls
Issue #468, April 30, 2017

Thomas Sowell: Part III of III
Issue #467, April 24, 2017

Thomas Sowell: Pat II of III
Issue #466, April 17, 2017

Live Close to Where You Work
Issue #465, April 10, 2017

Medtronic in Hospital Management
Issue #Interim Bulletin #464A, April 07, 2017

Thomas Sowell: Part I of II
Issue #464, April 03, 2017

A Political Contribution a an Investment: Part II of II
Issue #463, March 27, 2017

A Political Contribution as an Investment: Part I of II
Issue #462, March 20, 2017

Buffett Selling Vacation Home
Issue #461, March 13, 2017

Advanced Placement (AP) ourses
Issue #460, March 06, 2017

The Importance of a Credit History
Issue #459A, March 02, 2017

A Credit Card Scam
Issue #459, February 27, 2017

The Electronic Health Reord
Issue #458, February 20, 2017

Issue #457, February 13, 2017

Platinum and Palladium
Issue #456, February 06, 2017

Economic Outlook for 2017: Part II of II
Issue #455A, February 02, 2017

Economic Outlook for 2017: Part I of II
Issue #455, January 30, 2017

A Story From Vegas
Issue #454A, January 25, 2017

Land Donation Deals and the IRS
Issue #454, January 23, 2017

The Theory of Gambler’s Ruin
Issue #453, January 16, 2017

Student Loans: But Wait, There’s More!
Issue #452, January 13, 2017

A Second Home
Issue #Interim Bulletin #451A, January 04, 2017

The Consumer Confidence Index
Issue #451, January 02, 2017

Social Security
Issue #450, December 26, 2016

My Outlook for 2017: Part II of II
Issue #449, December 19, 2016

My Outlook for 2017: The Market
Issue #448, December 12, 2016

Medicine in 20 Years
Issue #447, December 05, 2016

Higher Interest Rates
Issue #446, November 28, 2016

Trump and the Markets: The Bad and Ugly
Issue #445A, November 23, 2016

Trump and the Markets: The Good
Issue #445, November 21, 2016

Negative Trends: The Suits aren’t Makin’ Steel
Issue #444, November 16, 2016

The New DOJ Fiduciary Rule
Issue #443, November 07, 2016

Barron’s Conference, Part IV of IV
Issue #442, October 31, 2016

Barron’s Conference, Part III of IV
Issue #Interim Bulletin #441A, October 26, 2016

Barron’s Conference, Part II of IV
Issue #441, October 24, 2016

Barron’s Conference, Part I of IV
Issue #440, October 20, 2016

This Newsletter
Issue #439A, October 12, 2016

Memoirs of US Grant: Vol II
Issue #439, October 10, 2016

More Points on Collecting, Investing and the Economy
Issue #Interim Bulletin #438A, October 05, 2016

Personal Memoirs of US Grant
Issue #438, October 03, 2016

Ideas for a High School Part-Time Job
Issue #Interim Bulletin #437A, September 29, 2016

Collecting, Investing, and the Economy
Issue #437, September 26, 2016

Free College
Issue #436A, September 22, 2016

A Military Commitment to Pay for Med School
Issue #436, September 19, 2016

When a CD isn’t a CD
Issue #435, September 12, 2016

I Made a Mistake
Issue #Interim Bulletin #434A, September 07, 2016

What is Your Spare Time Worth?
Issue #434, September 05, 2016

Credit Cards and Bonus/Loyalty Points
Issue #433, August 29, 2016

The Write-off of Student Loans
Issue #Interim Bulletin #432A, August 25, 2016

412 Retirement Plans
Issue #432, August 22, 2016

Join the Club
Issue #Interim Bulletin #431A, August 18, 2016

The Case for Precious Metals and Hard Assets
Issue #431, August 15, 2016

When the US went off the Silver Standard
Issue #430, August 08, 2016

Why NOT to Open a Restaurant
Issue #429, August 01, 2016

Some Tips on Life Insurance
Issue #428, July 25, 2016

More Observations on Negative Interest Rates
Issue #427, July 18, 2016

Issue #426, July 11, 2016

Is a PhD Worth It? Part II of II
Issue #425, July 04, 2016

Is a PhD Worth It? Part I of II
Issue #424, June 27, 2016

Avoid Part-time real Estate Agents
Issue #423, June 20, 2016

Issue #422, June 13, 2016

The Problem with Auction Reserves
Issue #421, June 06, 2016

Make Full Use of Your Capital Investments
Issue #420, May 30, 2016

The Fed’s Announcement
Issue #419, May 23, 2016

Quit While You’re Ahead: A True Story
Issue #418, May 16, 2016

The Precious Metals
Issue #417, May 09, 2016

Negative Secular Trends: Part Ii of II
Issue #416, May 02, 2016

Negative Secular Trends: Part I of II
Issue #415, April 25, 2016

Not Winning is not the same as not Losing
Issue #414, April 19, 2016

Behavioral Economics: Part II: Weaknesses
Issue #413, April 11, 2016

Behavioral Economics: Part I: Valid Points
Issue #412, April 04, 2016

The Most Important Books I’ve Read
Issue #411, March 28, 2016

Secret to Success: Take Risks and do Things Differently
Issue #410, March 21, 2016

The Over-Priced Food Presentation Hustle
Issue #409, March 14, 2016


By Robert M. Doroghazi, M.D., F.A.C.C.

The War on Cash

Issue #408, March 07, 2016

    WSJ (2/17/16). A paper from Harvard entitled “Making it Harder for the Bad Guys: The Case for Eliminating High Denomination Notes” says that there would be less corruption, and make life harder for tax evaders, terrorists, drug dealers, financial criminals and human traffickers if high denomination bills such as the Swiss 1,000 franc note ($1,010), the 500 Euro note (about $550) and the US $100 bill were eliminated.
    RMD comment: Please, this is naïve in the extreme. Prohibition didn’t stop people from drinking: to the contrary, it made everyone who wanted a brewski or a little shot before bedtime into common criminals, driving them into the arms of the Mob to satisfy their urges. If someone wants to do something bad, they’re going to do it. $1M in $100 bills = 22 pounds. $1M of gold (at current value) weighs about 50 lbs. $1M in quality 1 carat or larger diamonds weighs a fraction of this, as does $1M of rare coins. Art is bulkier, but just as portable. Bitcoin is a great way to move money. In Las Vegas, casino chips are money.
    Paying in cash has its advantages. Many merchants will give you a 2-2 ½% discount as the fee they would have paid the credit card company. Some local merchants, and many independent contractors, will give a larger discount if you pay in cash (never ask for the cash discount until after you are presented the bill). Restaurants love people who pay cash. Cash allows you to scoop up deals you might otherwise miss.
    When General Steel (the Commonwealth) in Granite City closed in the mid-70s, my dad lost his job of 37 years, and took a job as a custodian at the School Board. Uncle George lost his job of 30 years and went to work at the May Company warehouse in St. Louis. To make a few extra bucks, U. George would make the rounds of pawn shops. When he had a problem closing a deal, he would put the merchandise he wanted in one pile and the cash he was willing to pay in the other pile. He would then say simply “Which pile do you want?” Only once was he turned down. Do not underestimate the power of cash.
Cash is King
      An important practical point: Paying with cash as compared to “flipping some plastic” encourages thrift: you can’t spend money you don’t have. Credit cards make it too easy to spend beyond your means.     
    The fondest dream of every government on earth is to eliminate cash. Think about it: there would be a record of every time you bought a lottery ticket or made a bet at a casino, every time you went to the movies, every time you bought shotgun shells, underwear or a broom. Very scary—and the bad guys would still figure a way around it. Political and economic freedom are one and the same.
Cash is essential for economic freedom.
    There is currently a practical reason that governments would like the big bills eliminated. In countries where the central bank has driven interest rates negative, like Switzerland and Japan, putting $10,000 on deposit at the bank will result in a loss, whereas $10,000 in cash in the safe deposit box retains its value. Negative interest rates are bizarre, and will have many unintended consequences—all bad.
    Negative and low interest rates are killing savers and any entity that relies on income from a bond portfolio, such as retirees, insurance companies, foundations and endowments. I am Chmn. of the Finance Comm. of the Boone Hospital Foundation. We keep the standard 40% of our $10M in fixed income. Because of a fear of rising interest rates, we have kept the average maturity short. As older, higher-paying bonds have matured, the money is being rolled into currently lower paying bonds. The blended interest rate on our bond portfolio has now fallen to about 1.5%.
    In a traditional setting, our bonds would have earned about $200K per year of dividends ($4M x 5%). Now it’s earning about $60K ($4M x 1.5%) per year. That’s a lot of money we have lost and will never recoup.
    Friday may have been a reversal day for the precious metals. The chart of GDXJ, an ETF of the junior gold miners, shows a “shooting start”. At one point, it was up about 6%, only to reverse and close down on very large volume. 
    I recommend you go to  and see the post on March 2 “Demise of London Pool Ends Vietnam War” by  
    RMD comment: At one time or another, I’ve read parts of this before. This article provides details that make the whole picture fit together, how punk a President Johnson was, and why Nixon had to eventually break the dollar’s convertibility to gold.
    I finished America’s Bank: The Epic Struggle to Create the Federal Reserve.
    RMD comment: I was disappointed. Spend your time and money elsewhere.
    I finished skimming The Oregon Trail: A New American Journey (Buck).
    RMD comment: Spend your time and money elsewhere.

      I received a 2-year renewal from an original subscriber since October, 2006. The envelope had 3 8-cent Eisenhower stamps (from 1971) and a 25-cent Christmas stamp (from 1988).
    RMD comment: This fellow is older than I am, still works, has a net worth I suspect is easily in the 8 figures, and he uses stamps from 45 years ago. I’m impressed. 
    I believe that the ultimate definition of intelligence is original thought. A great example is the Abbott and Costello skit “Who’s on first?”
    First base:        Who.
    2nd Base:          What.
    3rd Base:          I Don’t Know.
    Shortstop:        I Don’t Give a Darn.
    Left Field:        Why.
    Center Field:      Because
    Right Field:      Never Identified.
    Pitcher:          Tomorrow.
    Catcher:          Today.           


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