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2.21.2018- Free Investing Newsletter Bookmark

Choke Points
 
How are Guns like Bitcoin? At first blush it would be hard to make a comparison, but if you think about it for a while you come up with something fairly common. Think about it like this: if you want to exchange dollars for a bitcoin, how do you do it? Well you’ve got to go to some form of an exchange. Notable ones over the years has been Coinbase, Poloniex, CEX.io, Kraken, Bitfinex, BitPanda, or BitStamp. There are many others, but these had the big names. (actually there’s about 130 of them)

 
Now think about guns. In general terms you’re going to head to a gun shop to buy your guns. Sure you might go to a gun show at some arena in your town, but even then the bulk of the vendors are gun shops that have sent an employee or two to the show, with a collection of weapons to sell.
 
So what’s the commonality between them? You have to visit ( digitally or in person) a known supplier of what you’re looking for. If you want bitcoin, you’re going to an exchange. If you want a rifle or a handgun you’re going to a gun shop. Now here’s where they both get interesting.
 
One of the big “sells” about cryptocurrencies was that they were anonymous. No one would know that you bought a bitcoin at say 500 bucks and one day it was worth 19,000. You’d be able to buy and sell things without anyone knowing what you were doing. Yeah, right. Do you think that in your wildest dreams, that Governments are going to let the Joe Blow’s of the world make profits like that and look the other way? Hell no.
 
And sure enough, the tax man started pressuring the crypto exchanges to provide names and addresses and the amount of bitcoins that were bought. So far they’ve been “relatively lax” about collecting taxes on gains, but it’s coming. They’ve already made note of who’s bought them, at what price and what they’d owe if they sold them.
 
Well, now that the left is on their most ardent witch hunt over gun control, we see their next plan of attack. Let me explain: The left knows that the nation is a gun nation. Not only do we have 400+ million guns in this country, the industry is worth billions of dollars annually. Consider this:
 
Just in 2016 and 2017 alone the NICS system of background checks to buy a gun hit records. Over 56 MILLION checks were done. Now granted just because someone pays their 5 bucks and gets a check done, it doesn’t mean they’ve actually gone ahead and bought a weapon. But let’s be real here. MOST people go through the background check because they want to buy. 90% do.
 
Now if the left knows it can’t get really strict gun laws passed, and by strict I’m not talking about mental health back ground checks, or longer wait periods. I’m talking banning guns, or banning accessories. If they feel they can’t do that, then what’s their next shot at curtailing gun buyers?
 
The Chokepoint.

Guns of any quality are fairly expensive. While you can actually get a very “good” gun that will function well such as the SCCY 9MM for just 225 - 250 dollars, when you talk about higher status guns, the price rises quickly. A Glock 19 is about 600 dollars. A sig P938 is about 700. A Kimber pro runs 1200.
 
That’s just hand guns. Fine rifles and shotguns are more. While you can bargain out an AR 15 for ab out 500 bucks, a “good one” will set you back 900 - 1500. When you’re talking true hunting rifles, you can start at 500, and go until your wallet is empty. My favorite rifle for instance is a Sako 85 in .308. But like most things nice it starts at 1600 bucks.
 
But I’m not here to sell guns, what I want to point out is that because they’re expensive, I’m willing to bet that a lot of purchases are done on credit cards, so that the buyer can spread the payments around some. There in a nutshell is the left’s “in” so to speak. If they can get the credit card companies to stop allowing people to buy guns with their cards, or stop buying extra magazines or ammo, it would certainly put a dent in the amount of weapons sold.
 
And so, true to form that scum bag from CNBC, Mr. Andrew Ross Sorkin went ahead and wrote an article for the NY Times in which he proposes this very action. Suggesting that the Government won’t do what “HE” wants them to do, he’s appealing to the credit companies to do the “morally right thing” and ban the use of Credit cards to purchase things he doesn’t like. Things like “assault rifles”.
 
Instantly my neck hairs get an erection when I read this sort of crap. The silver spoon in his mouth Sorkin, that couldn’t possibly figure his way out of a campground, wants to ban assault rifles. You know, like the AR15. Well Mr. Sorkin, please stick to things like caviar and truffles. Because “automatic’ assault rifles have been banned in the US for decades. But oooh - aaah it sounds so much scarier to call an AR an assault rifle, which it isn’t.
 
AR’s are NOT automatic. One trigger pull, one shot. Just like the little 22 Marlin you might have gotten as a kid. Just like the little Barretta pocket pistol your dad might have. One pull, one shot. Anyway, back to this idiot:
 
Sorkin says - I’m always trying to figure out, if the government can’t do it, is there something, is there leverage somewhere in the system?...I started looking through how this whole world is financed, that it’s very easy, or it could be easy, if the credit card companies, and that’s the Visa, American Express, MasterCard, were to step up....
 
If they were to say to merchants, “Look, we’re not in the gun business, we don’t want to be in the gun business. And if you sell these types of products, we’re not gonna work with you,” that it could be a very powerful incentive to really change the dynamic. And it doesn’t require a law. They talk about moral responsibility all the time. This is an easy way to do it and to show it.
 
Well isn’t he high and mighty? Mr. Sorkin wants to take the “high” road by pressuring your financial company to stop doing business with the tens of thousands of gun shops in the nation. And like any true leftist mutant, he really thinks that somehow that’s going to stop anything.
 
Of course he only got this idea after that supposed mess down in Florida. I wonder why the “so concerned moral guy” Mr. Sorkin didn’t come up with this idea sometime earlier, after say yet another mass shooting in Chicago? Just in February alone, in ONE TOWN, that being Chicago, there has been 23 shot and killed, 76 shot and wounded. That’s in 20 days folks. For the year so far, this one little town has 59 shot and killed, 249 shot and wounded. That’s just from Jan. 1.
 
I guess Sorkin really doesn’t “feel the moral thing” until it’s 17 kids? Does he have a bias against addressing 250 people shot and 59 dead in Chicago? Maybe because a lot of it is black on black or gang related, he doesn’t get so morally charged up? Is this liberal really a closet racist and doesn’t care about black folks shooting each other? I don’t know. I do know that I detest him.
 
With Crypto’s the Government is going to go to the exchange chokepoints to get people. With guns, it looks like the left will attempt to sway the Visa’s and Master Cards of the world to stop allowing the purchase of a legal weapon to our citizens. That’s going to be their check point. The easy fruit. Go after the financing.
 
Folks, I told everyone when Trump won that “this isn’t over” and a year + later we’re still hearing about Russians. I also told my gun dealer friends that the left’s war against them wasn’t over, and they’d be back to their old ways. Well, they’re back in droves. If you value your 2nd amendment rights, do yourself a couple favors. I don’t care if you hate them or not, but donate to the NRA. They are the single reason we still have a 2nd amendment in this Country. ( no they’re not perfect and yeah I know of the other clubs people have more faith in. But I ask you, where were these other outfits 20, 30, 40 years ago when the NRA was still promoting gun safety, classes, courses, etc? Nowhere, they didn’t exist.)
 
Second, go get yourself a good firearm. Handgun, long rifle, it doesn’t matter. The tens of thousands of people in the firearms business need support, because the left would love to put them out of their jobs. It’s very sad.
 
 
The Market:
 
Coming into the Holiday shortened week, I had mentioned both Sunday night in the Free letter and in our “pay for” members area that I felt we might stumble into a red session for Tuesday. Well, Tuesday morning the futures were indeed red, and while they shook off an early dip and actually got the NASDAQ and S&P green shortly after the open, as the day wore in it felt “heavy” to me.
 
Sure enough, in the last hour waves of selling hit and in almost no time at all, the DOW was down 330 points. Then some algo driven buying stepped in and we ended the session off the lows. But it wasn’t a great showing for the bulls. Both the DOW and the S&P ended the day below their respective 50 day moving averages.
 
Today, the futures started the day sort of pink. But as we got closer to the open, they got themselves back to flat, and the S&P actually poked into the green just ahead of the bell. Once we were open, they took us higher, and it seemed like yesterday was a one day event. But, today was also the release of the Fed's "minutes" from the last meeting, and they were all worried that the minutes might be pretty ugly.
 
 
Why? Because the market is so high and everyone's saying the economy is so hot, that they feared they might talk about doing more rate hikes than anticipated. Well things got odd. Heading into the release of the minutes the DOW was up about 100+ and the S&P was up nicely too. When the minutes hit and it wasn't any worse than they feared the market went NUTS. The DOW was up 303. The S&P was up 30. It seemed nothing could stop it.
 
 
But then it stopped. In fact, it reversed all the way down and we went RED. Can you believe that?? So what was that all about? Evidently rates spiked a bit, and they freaked out that maybe the bonds were going to outpace the Fed's and rates might go higher than they expected. But wait, then we went green again! And then, back to red. I couldn't keep up.
 
 
When the final bell rang, we were down pretty heavy. The DOW had peeled off 167, the S&P lost almost 15.
 
 
So, now the big questions. What the hell was that about? At 2:20 pm I was writing to my Insiders that I guess I blew the call for today, because I said early on in the day that I thought we might end the day red. But we were up huge after the Fed minutes, and I looked silly. Then the wheels came off and from up 303 we ended the day down 167. Wow.
 
 
What's it mean? Well, my feeling from Friday was that we needed a few red days to work off the froth that they had built up last week. Evidently I got lucky. I didn't look so lucky at 2:20 but the bottom line is that we did go red. Now the question is, did we do enough red, or is there more coming? I tend to think we're going to reach down a bit more into the red before they pull us back up to green again.
 
 
Hang onto your hats folks, it's been a wild few days!

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