Jun 1, 2011

For those of you with little confidence in the coming QE3

Ever since I decided to begin accumulating ammunition as a minor protection against currency devaluation, I've had a weird ambition.

I would create an alternate form of money based on the .22 long rifle 36-grain hollow point, still  available at WalMart for  .0389 cent per round. I would repackage them in five- and  ten -round lots and offer them as a Liberty Quarter and a Liberty Half. (Or I might  immodestly deem them TMR coins. That would, as a matter of euphony, make them "Teemers" in the vernacular or better yet -- as a tribute  to the sane side of the Tea Party -- "Teamers." The Teamer Two (bits) and the Teamer four (bits). Perhaps eventually a Teamer Buck and Teamer Fin would evolve. Yes,Teamers.)

The only thing which has stopped a tiny experiment in the business model is my inability to find clear and cheap-enough plastic packages to contain the cartridges in a rattle-free manner. In truth, I haven't looked all that hard, but the incessant reports of plummeting  paper money might move me to intensify the search.

The Teamers would be everything Ben money is not. They have inherent utility; you can always shoot them.  They are backed by -- in fact made of -- commodities which will always be in demand. They and their value are instantly recognizable.  There is no chance of profitable counterfeiting. Even Bernanke would have a hard time  taking over and accelerating the machinery needed to produce ammunition. (Besides, Senator Schumer wouldn't approve.)

I would try the Teamers first in their natural habitats, gun shows and gun shops. I see a four-ounce can of gun oil I want and  offer two Teamer Fours, maybe plus a loose round or two for lagniappe or to cover the sales tax.

Yes, bulk is a problem, but, then, wheelbarrows were a popular item in Weimarville. It can be worked out at least until the Teamer catches on to the point of huge transactions being denominated in the stable new money.  This is actually an opportunity. A fresh market could then be developed in warehouse receipts for Teamers. From that could come Teamer futures markets, then options and other derivatives on Teamer futures. Then a Federal Reserve Note promising to pay to the bearer on demand one or more Teamers.

This is getting exciting. Why, by the time of the second Chelsea Clinton Administration the concept could expand to include other calibers. Imagine, credit default swaps and arbing momentary price inefficiencies between, say, the .22 long rifle and .380 ACP full metal jacket.


Anonymous said...

Get snowed in again? JAGSC

Jim said...

I gather you don't find the Teamer a viable alternative to wet-strength Bernanke tissue? :)