Baltimore — There is no debating the private sector is more efficient than the public sector. Give a hundred grand to a small business owner and he will quickly spend it in a way that provides his business the most reward.
Give the same cash to just about any government entity and the bureaucracy will spend another hundred grand studying how to spend the original allotment.
If you will excuse a few ‘graphs of business-school jargon, I will show you what has got to be the most blatant example of government ineptitude since Fannie Mae’s creation.
Sadly, we are just a few months away from yet another tax season. That means the IRS is gearing up for two months of sensory overload. In a year when dozens of tax laws where amended to free up spending and grease some votes, countless Americans are bound to call the IRS looking for help.
If it were a private enterprise picking our pockets, you would expect timely, courteous service, right? It’s why so many call centers have abandoned their overseas posts and moved back home. You don’t skimp on customer service.
But not if you’re Uncle Sam.
The IRS just revealed its “goals” for the upcoming tax season. If all goes as planned, just 70% of Americans who call the IRS will ever get the privilege of talking with somebody that can answer their questions.
That means, even though many of us are paying thousands of our hard-earned dollars to keep this government running, just seven out of ten of us will ever hear a hello on the other end of the line. And who knows how many will actually receive an accurate answer?
Now, here’s where the jargon comes in.
If you have anything to do with the business world, you’ve likely heard of Six Sigma. It’s the latest craze in quality control circles. Saving you the lesson on standard deviations and statistical mumbo jumbo, Six Sigma essentially says 99.9997% of all production must be defect free.
Yes, the private world is aiming for three out of every million to be defective, while Uncle Sam is hoping it is good enough to do three out of ten.
Doesn’t that make you confident your money is well spent.
If Washington truly wanted what is best for this country’s economy, it would close up shop, return our tax dollars and say to the private sector, “You deal with it.”
At least then somebody would answer the phone.
*** Really, I shouldn’t complain about no-good governments. Without Washington’s economic ignorance, the gold markets would be as barren as the help wanted section.
But we all know the gold markets are alive and well. Like usual, timing is everything.
If you’ve been a frequent reader, you know my disdain for precious metal was high in December. Too many speculators were pumping the investment and prices moved too high, too soon.
As the dollar strengthened going into the holidays, gold’s price plummeted. My official target was $1,050 per ounce, but I had to abandon my forecast and jump into the market when the indicators showed a varying opinion.
One of the last things I did before clocking out for the New Year holiday was recommend a play on gold to TFN Strategic Trader members. It was as simple as it gets.
On December 31, I wrote:
“Without actually taken possession of gold bullion, one of the most efficient and easiest ways to take advantage of future spikes in price is to buy shares of the SPDR Gold Shares ETF (NYSE:GLD). While not all tracking ETFs are accurate mirrors of their underlying asset, this $42 billion fund has done a reasonable job over the past twelve months.
“With gold shedding a significant portion of its value over the last four weeks, the speculation surrounding the metal has diminished greatly. That means once we get back down to base levels – the charts show its somewhere between the $1,050 and $1,100 per ounce range – we are set for even more upside.
“Rising inflation, interest rates and economic activity will boost demand well into the new year.
“Here is how I want you to take advantage of the situation. It is simple. Buy the ETF’s February 107.00 calls (GCZBC). As gold prices head higher in the New Year, this play has strong gain potential.”
And today, just three trading days later, I wrote:
“What a call we made on the gold market. If you followed my advice last week and bought SPDR Gold February 107 calls (GCZBC), you are sitting on gains of at least 43% and I know many of you are above the 50% mark.
“Sell your GLD February 107 calls (GCZBC).”
Don’t you just love the power of options and the ignorance of big governments?
Did you like this article?
Submitted By 
's
