The Red Pill by Jay Pounder

I recently read the book titled The Red Pill by Jay Pounder, which I believe was self published in 2012.  The book is clearly a wake up call to Americans to change their spending and self reliant ways.  I think the book was informative and there were a few criticisms that I had, as I started thinking about the practicality of taking measures to prepare your families for the upcoming economic collapse.

China Prints Their Currency

I just can't help but wonder how one of the poorest nations, for centuries, now in recent history has came out of nowhere economically.  A country with "extractive" economic and political systems, with a per capita GDP 1/10th that of the United States.  I realize that over the last 10-20 years we have been falling behind in a trade deficit and losing our innovative technologies by shipping our ideas for production and theft, but are these the key elements of their financial strength to where they can keep buying US debt?  Is the Yuan really backed by gold?  How would you know?  I'm just asking the question here, and am willing to learn along the way if you have the answer.

Bullets & Beans

One aspect of The Red Pill was the preparations that families should be making with bullets, beans, and band-aids.  I agree, we should be prepared for disasters, and we should be prepared for a loss of our constitutional rights and freedoms.  We should be willing to fight for those ideals.  As I was reading, the real frustration that came my way was related to the number of guns and ammunition one should be stockpiling away.  I'm sure, if you have more you should prepare more, but the laundry list was nearly $10,000 worth of  rifles (hunting and automatic), handguns, shotguns, and ammunition.  More practically, I'd challenge the average American to put that $10,000 on their credit card balance to seek after a debt free life, rather than  armory building.

Search & Seizure

A good portion of the book was focused on a hypothetical scenario where the government was requesting, then requiring, all goods of value that could help the country during an economic collapse, through martial law..  So here's my point, is it wise for me to stockpile a large portion of silver, gold, food, water, and firearms, if I'm going to be required to hand it over for the good of the order?  I'd have to consider, if I have gone that far to prepare, I better be willing to protect it at all costs.  How frustrating would that be to make all those preparations, only to have agency come in and take it for their own distribution.

As Federal As Federal Express

Jay Pounder gives an interesting overview of the Federal Reserve and shows how it functions in relation to the US Government and our commercial banks.  I think the one thing I found strange that this banker, in the industry for 10-15 years had only discovered that the Federal Reserve was not a government agency only a year ago.  I've heard the phrase, Federal as Federal Express for years, after doing my own research, I just found this strange to be discovered so late in our economic history.  I don't fault him there, clearly most Americans have no idea what the Federal Reserve is, so I give him credit for learning, discovering, and changing.

One other interesting highlighted by Mr. Pounder was his detailing of the Fed's history and some of the presidential assassinations in relation to changing or inhibiting the Federal Reserve, such as when John F. Kennedy established the $2 and $5 silver certificates.  Correlative, and strange.

In closing, I recommend getting a copy of The Red Pill, if anything, it'll make you think, ask questions, and determine whether or not you need to make a change in your financial life.  The book is a short read at only about 80 pages and definitely a conversation starter for your friends and colleagues.

Costco Mortgage Loan Service

In June of this year when mortgage rates dropped to historical levels I thought it was about time to run the numbers again on mortgage refinance options. At the time I was locked into a 5.5% 30 year residential mortgage that still had 20 years of payments left. I had been paying extra towards the principal every month to pay it off early but it was still a slow slog. As mortgage lending rates continued to drop over the last few years I would run the numbers occasionally to see if it made sense to refinance my residential mortgage. I probably looked at the numbers differently than most people that are looking at mortgage refinance options. I was not looking for a lower monthly payment or starting over on a 30 year mortgage. My goal is to pay off my home as quickly as I can, while not raising my payment to a level that will strap me to a high mortgage payment. I have been waiting for the 15 year mortgage rate to drop to a level that would allow me to refinance and not raise my monthly payment above what I am was currently paying. In June of this year that happened! I was listening to the news and heard that the 30 year rate was down to 3.69%. I immediately looked into the 15 year rate and discovered that it was 3.125%. I called my bride and told her what I was thinking and she said go for it. I made a few calls and requested a couple of good faith estimates. In the past I have always used a friend of mine named Paul Ramsey, who owns Quantum Mortgage Northwest. He always has the best rates, lowest costs and is a joy to work with.

Paul had the best offer like usual but then I thought of something. Why not check Costco? Years before I secured a 3% car loan through Costco. I jumped on the Costco.com web site and looked under the heading ‘services”, Low and behold they offered a residential mortgage service and if you are an Executive Member the loan “fee” is capped at $600 ($750 for Gold Star Members)! Most lenders charge a 1% loan origination fee, in my case that would have been $1300. (Of course Paul’s fee was less than that, at $995.) It takes about 2 minutes to enter the information needed online at the Costco web site. Typical things like name, address, mortgage amount, etc. and then you hit the send button. This is no exaggeration, I received a phone call in 60-70 seconds from the time I hit the send button! I was greeted by a very helpful loan officer from Central Mortgage Company. After a 20 minute question and answer session, I was pre-approved over the phone for a 3.125% 15 year mortgage! I received two additional calls from other mortgage companies within the hour, but the rates and fees were lowest with Central. After talking to my bride about the details I moved forward with Central Mortgage Company. Communication with my loan officer was very efficient and everything went so smoothly that I was that it exceeded my expectations. Everything was done via fax or e-mail with the exception of the closing which needed to be done by a local closing agent. The total process from initial phone call to closing was 28 days. I could not have been more satisfied with Costco or Central Mortgage Company during the whole closing process.
Here is what I ended up with:

15 year loan at 3%

Previous payment             $1243 per month         New payment     $1248 per month

Principal gain                      $300 per month                                  $600 per month

So my cost to live in my home (before maintenance) is $648 per month, since the rest is going to principal! I can’t rent a nice apartment for that price. And I live in an above-average home and neighborhood.


Furthermore, I continue to pay the additional principal payment each month that I was making before which makes this 15 year loan a 13 years loan. To quote James Brown “I feel good!”


The Costco mortgage loan service is one of many services offered by Costco that a lot of people are not familiar with. Before I make any large purchase or financial decision I always go to the Costco web site to see what they have to offer. Typically they offer the best product or service for the best price. When you are shopping for something go to Costco.com first. I can almost guarantee that you will leave happy!

Perfect Boiled Eggs

 About a year ago I stumbled across this blog post and found it had a great method for cooking hard boiled eggs that were easy to peel, we're not over cooked, and tasted great. The one significant difference between what I am writing about today and Simply Recipe's post is that I am cooking on a gas stove. 

 The significance is the retained heat in the coils, referred to in the posting, which is a valid point with electric stove tops with coils or even glass tops. I started off with the same process and have modified the steps after boiling begins and found that the eggs have turned out really tasty, with bright yellow yolks, are fully cooked, and easy to peel.

Perfect Boiled Eggs

1. Start with a pan of cold water, straight from the tap.
2. Place the eggs in the pan.
3. Turn on the stove and allow the water to begin to heat up.
4. Add about a 1/2 a teaspoon of salt
5. Since the eggs are sitting on the bottom of the pan, move them around every couple of minutes
6. When the water begins a rolling boil, let boil for 3 minutes.
7. After 3 minutes turn off the stove top and let the eggs sit in the hot water for 5 minutes
8. Transfer the eggs to a bowl of ice water so they can begin to chill and cool down for serving
9. Periodically drain the warmer water, so the eggs are always soaking in cold water

After they have fully chilled peel them for your toasted egg salad sandwich, or favorite hard boiled egg dish.  Please note that the cooking time may need to be extended when cooking more eggs.  For this, I was cooking two eggs, and found the times above to work out perfectly.  But, for the most part, the cooking time was related to the getting the water from tap to the boiling point.  I'd experiment a little and see how much length needs to be added to the cooking time after the water is boiling.  I don't think it'll be much.  

I hope this helps a bit.  I have learned that there are many strong beliefs posted in the comments of the Simply Recipes entry on the Perfect Hard Boiled Eggs, but the ones related to salt and the easy peeling aspect of hard boiled eggs were the most beneficial to me.  Give this process  a shot on your gas stove and see if you don't end up with perfect boiled eggs.

Preparedness

Everyone can remember the devastation and chaos following the flooding in New Orleans after hurricane Katrina. Very few people were prepared for the aftermath of such a large storm surge battering and breaching the levies surrounding the city. After all, they were many prior storms that had not caused that much destruction. This is one of many natural disasters that have hit America in the last decade. Usually people are not very well prepared for the smallest interruption in their daily routine. The US government, state governments and the American Red Cross have been trying to educate Americans about the need to have some basis emergency preparedness items on hand in case of a disaster, power outage, terrorist attack, etc. Most Americans ignore this education effort thinking that it will never happen to them…

I am not talking about going overboard and building an underground bunker with 5 years worth of food and water. The most realistic scenario will be 3-5 days of supplies to provide for your basic needs while the infrastructure and utilities are repaired and put back in order. It takes very little time and money to prepare your home with 3-5 days of supplies. The American Red Cross has already made a list that you can print from their web site. Personally, I have a longer term kit ready to go in my garage. Having lived through a couple of events myself, I feel that 3-5 days is a good start and 20-30 days gives me additional peace of mind, just in case.  As always, check out what Costco has to offer!

I can remember three major events that I have lived through here in Spokane. May 18, 1980 Mount St. Helens erupted covering Spokane in 2-3 inches of volcanic ash. On October 16, 1991, a firestorm of 92 fires caused by extremely dry conditions and high winds burned 114 homes and killed two people. November 19, 2006 brought an ice storm to Spokane covering everything from cars to trees to power lines in a thick layer of ice. What do all three events have in common you ask? All three incidents brought the city to a halt, with store closures, power outages, school closures, etc. Having a small cache of emergency supplies on hands makes a lot of sense, especially after living through these three events.

Another important tip to keep your family prepared is to keep your vehicles full of fuel. Try to keep your vehicle half full of fuel at all times and never wait until you are on empty to fill up. If an event occurs that scares the populace there will be a run on gasoline. Everyone has seen the news reports of the long lines developing at gas stations right before a hurricane hits Florida. It doesn’t cost extra to fill up more often and it makes a lot of sense to never letting your tank fall below half way point.

Hopefully you will never need to break into your 3-5 day kit. But should the need arise, you will be thankful that you spent half a day and $100 or so to prepare your family. Don’t delay! Get prepared

What's in the Fridge?

Summer has ended and fall is coming on strong with brightly colored leaves falling to the ground all over our neighborhood. The mornings are brisk and the afternoons are mild, my favorite time of the year. What this means for my household is that we will be making soup and lots of it. Soup, chili and stew are something that we enjoy making and searching for a new recipe is half the fun. But there are times when we are running late or just don’t feel like taking the time to cook and clean up. One of the soups that we often enjoy is Pacific brand organic soup purchased in a 6-pack at Costco.

Roasted red pepper and tomato soup is one of our favorites. It doesn’t contain any harmful oils or high fructose corn syrup as an ingredient. Plus all the ingredients are readily identifiable! (Milk, water, tomato paste, red bell pepper, cane sugar, garlic, sea salt, butter, rice flour, spices and sodium citrate)   The only negative would be the level of sodium that it contains but as you now most processed or canned foods have a large amount of sodium. This soup is delicious and has a home-cooked taste of tomato as well as sweet roasted red pepper flavor. It is a great accompaniment to toasted cheese sandwiches or wonderful by itself. The packaging is more convenient than a can as it can be resealed and saved in the original container for use later in the week. Pacific brand soup can be found at most grocery stores for $2.75 to $3.25 per container. Plus there are lots of different types of soups available from Pacific and we have enjoyed them all. But once again Costco comes through with the best value. $10.99 for a 6-pack makes this $1.83 per container and one container will feed my family of three. Sometimes we spiff the soup up with fresh croutons, oyster crackers or some cooked macaroni noodles. My bride loves to add a can of diced tomatoes which gives the smooth soup some texture. If you have not tried this soup I highly recommend it. Fall is in the air and nothing is better in the fall than a hot cup of soup!

iPhone Tips: Playing Audio at Double Speed

The other day I was trying to determine how I can listen to audiobooks at a faster rate of speed rather than the standard playback.  Over the past year, I've been listening to a large number of books on my commute, and recently wondered how I could get through them faster.

I noticed when listening to podcasts, you have the option of playing the items faster, and began searching for iPhone and iTunes tips for doing the same for Books on CD.  Here's the process:

iPhone Tips

1. Using iTunes, import the tracks from each CD of the audiobook
2. Create a new playlist and add the imported tracks to the playlist
3. Select the playlist and then select all of the listed tracks
4. Right click on the selected list and select Get Info
5. In the Options tab, change the Media Kind to Audiobook

This will create a new object in the Books portion of your Library.  When you sync iTunes and your listening device, be sure you are syncing the Books.  Being able to play audio at double speed in iTunes is a great way to spend less time listening to audiobooks on your commutes.

Getting and Staying Fit.

It has been a lifetime struggle for me to stay fit. Why has it been? I have pondered that question for 25 years.

The best answer I have to date is, it’s been easy just not to pay attention to it.

 There are quite a few people in my family that have weight problems, but there are also people that are fit as a fiddle! I used to use heredity as an excuse; at this point I feel it’s simply an excuse. The fit people in the family work at it. And the others don’t. Plus I love to eat! I’m a stress eater, I’m a happy eater, I’m a social eater, and I’m a bored eater…Plus doing whatever I want is way easier than Exercise.

So now I'm in my mid 40's it's finally time to wake up and do something about it for good.

I’m finally in the mindset that this is not a temporary endeavor. It will be, and needs to be a way of life; if I want a life.

I am lucky to have a lovely wife and 3 great children. I don't want to be the fat dad who can't or won't do anything with his children. I want my wife to be proud to introduce me as her husband.

I have been promoted to a management position in a national company that requires travel and presentations for various items. I don’t want to be judged the minute I enter the room. I don’t care what people say about this, but you and I know it happens…

 With the encouragement and pleading of some lifelong friends and family I’ve started on this journey I have been putting off for way to long. To get kick started I’ve enrolled a program offered at the local YMCA. It’s a 12 week plan called Metabolic Makeover. https://sites.google.com/site/mmakeover12/

I just started week 5 of the program. So far I really like it. It hits on all points. Nutrition, exercise, positive self talk, accountability. Turning in food journals, No excuses for NOT showing up for exercise class.

 It's not like I've not known what to do. When you break it down it's really quite simple. Eat a balanced diet; eat your calorie needs and exercise! No magic here.

 I've lost over 100 pounds twice in my life and 30 to 50 pounds more times than I can count on various commercial diet programs. Did they work? Sure they work, but you can’t revert to your old ways after completing their programs.

This program incorporates all of them not just one or the other.

We weigh in and do body composition testing at the end of week of 6 and again the end of week 12 with a fitness re-evaluation.

I’ve been forcing myself to not step on the scale prior. But I know I’ve lost weight. Pants are looser and my shoes are looser as weird as that sounds.

I plan on signing up for the winter quarter class as well for another 12 weeks.

I’ll keep my progress updated. Wish me luck!

Mainvue Homes Review

Mainvue Homes is a newer builder in the Seattle area.  My fiance' and I were drawn to their homes due to their unique home designs; we wanted something just a little different.  When we decided that Mainvue homes was what we wanted, we were able to go to their main homesite center, called the Bridges, and choose from 11 different pre-built home designs which was nice.  We picked out a home model and a color scheme as well as a small development that they were building homes on.  That's probably about where the positive part of our experience ends.  If I had known what the process would be like buying a home from Mainvue, I would definately look elsewhere.  My two biggest issues with Mainvue homes is the extremely poor communication between our main contacts during the actual home building (the sales center), the person supervising the construction and us.  The sales center never had accurate information with regards to where our home construction was which we simply checked by going to the home itself.  They were often short and often had incorrect information.  The main issue of my disatisfaction with Mainview homes would be their construction quality.  They tell you that they build with attention to detail and keeping their customers happy.  We just performed our final walk through inspection and I was expecting minor cosmetic issues, but I wasn't expecting the majority of walls to be out of square (to the point where they agreed they needed to fix them).  Their actual initial response to our complaint of crooked walls and ceilings was "that's normal".  Normal.... Normal....  I know quite a few people who are either in construction or deal with it on some level and they either laughed their ass off at that comment or said "That's B-SHIT!", which I agree with.  Cabinets not true or hung square or flush.  Exterior roof boards so dramatically warped their response when I pointed it out was "Oh, we have to just replace that.  There's no way we can fix that board".  DUH.  Deck posts that had a twist to them, probably 20'.  I asked "is that because lower grade wood is used for decking?"  The response was "no, it's actually supposed to be good quality/grade lumbar".  I told him I'd hate to see what poor quality lumbar looked like.  replace it.  The list goes on.  Between extreme lack of caring for doing a job with any level of pride by the sub-contractors and piss-poor communication I would give Mainvue homes a 1 out of 6 stars, simply due to the designs....

Refrigerator Purchase

Moving into our newly built/purchased home (Mainvue built home) and needed to purchase a fridge.  My fiance and I have shopped quite a bit, at Costco, Home Depot, Lowe's, Sears and several other appliance stores.  We ended up staying with Sears as they had the largest selection of viewable- at the store- units.  We ended up liking the Kenmore Elite counter depth the most.  We were about to pull the trigger at the store, but using my handy smart phone (Droid Incredible) I was able to locate the same unit at a Sears outlet for what ended up being a $800 savings.  It has a very un-noticeable dent in the lower left section of the front stainless steel door- easily worth the savings.  We are looking forward to putting this unit into service and will update the post with our views on it.

Credit Cards Are Bad!

I believe that I am in a very small demographic that has never carried a balance on a credit card.  My father taught me that cash is king and debt is bad.  I took this to heart at a young age and have been fortunate enough to never wavered from my father’s teaching.   Of course I have a mortgage and I do have a car loan from time to time.  My last car loan was for a 2010 Subaru Legacy at 1.9% and we put half down and paid the balance off in 3 years.  I think the total interest paid was just over $400.  That seemed like a reasonable amount of interest to me and my bride.   I truly believe that I have lived at a higher standard of living than other people in my income bracket because I have stayed out of debt.  I have been unexpectedly unemployed twice in the last ten years and have never been hurt financially because I didn’t have several minimum monthly payments on credit cards to worry about.  All of that being said, I do have two credit cards, an American Express and a Visa.  Next week I will tell you how I use these two cards and a change that I am considering making to my current strategy.

Flu Season

Well, it looks like flu season for 2012 is upon us already. We had an episode of late night vomiting on Friday night, which inevitably let to a Saturday morning carpet cleaning excursion. Additionally, I gave my kids the I think I'm may throw up checklist knowing that we'd likely see the rest of them succumbing to stomach flu.

Vomit Checkist

1. Get out of bed
2. Run to the toilet
3. At least get to the sink
4. All else, get off the carpet

Just for a quick clarification, we had an incident where one knew they weren't going to make it to the toilet, so they just stopped.  Cleaning up vomit on the carpet at 2:00AM, really makes no one's day.  So, if you can't make it to the toilet, or the sink, at least get to the bathroom since it is much easier to clean up.

Our house didn't do too bad, because our kids are a bit older, but the other day I was doing some yard work and overheard one neighbor stating to another "Tommy just puked down the stairs."  That's rough.

Stay well this cold and flu season.

Thanh Thao - Thai Restaurant

If you are visiting Portland and get the craving for some good Thai food look no further that Thanh Thao on 4005 SE Hawthorne Blvd.  After leaving my cousins on Sunday afternoon we decided we needed to eat before hitting the road for Spokane.  My cousin lives in very unique area of Hawthorne street with many different types of businesses and strange people.  There are many food options up and down Hawthorne including a couple of Thai restaurants.  This was our first visit to Thanh Thao but it will not be our last.  It is situated in an old structure that has been decorated in the typical Thai décor.  The cleanliness was adequate and the table was clean and well organized.  As soon as we sat down we were greeted with a smile and hot tea.  We perused our menus and as soon as we closed the menus and placed them on the table we were asked to place our order.  I choose peanut chicken and my bride ordered chicken and vegetables with wide noodles.  The restaurant was half full when we arrived at 12:30pm.  By the time our food arrived the restaurant was completely full.  Our delicious food arrived in a timely manner.  My peanut chicken consisted of lots of chicken breast, peanuts and a few white and green onions slivers.  There was a thin broth style light peanut sauce that had a very mild spice taste.  On the side of the table you will find squeeze bottles of hosin sauce and chili sauce.  The chili sauce provided an added  kick making my meal perfect.  My brides meal was fresh broccoli, tomato, basil and chicken with perfectly cooked noodles.  I would describe the taste as a typical oyster style sauce that is a popular item at many Thai restaurants.  Mindy added a little hosin and chili sauce and we both ranted and raved about how good it was.  The portion size of our entrees were very generous and the total cost of our meal was $17.99!  Excellent food for an inexpensive price, my favorite type of meal!  If you make it to Portland, I highly recommend it.

Thanh Thao

Written by: Todd

Thanh Thao

Date published: 10/03/2012

4.5 / 5 stars