Monday, July 23, 2018

k-mart economy


KMART ECONOMY
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Once again, as has been the case for nearly twenty years going by old newspaper articles, rumors of our local K-Mart closing are flying hither and yon.  They are having a 50% off sale, but that isn’t exactly indicative since they did that once before and the store still sits there taunting me.  The amusing thing is-amusing to me but not to the NOL who now has to go back once again ( she hates going out in public as much as I do, a real budget saver since we eat out once or thrice a year )-that rather than giving you half price they give you points on your membership card to redeem later.
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I couldn’t figure out why, until it dawned on me that the corporation is so desperate for cash now that they take the full amount of money now and give you free merchandise later, or, ideally, you don’t redeem your card points because there is nothing left in the store worth having ( or, you wait too long and don’t get back at all ).  The thing is though, even at “free”, most everything they carry isn’t worth it.  I’ll dutifully tag along with her to the store to try to get her monies worth, but outside a few outliers there is barely anything there I want.  They do seem to be the only ones selling a really good smelling mild coconut woman’s perfume that I like on the NOL, and I imagine in the auto parts section or kitchen items I could eventually stumble upon something.
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But just the two mile trip there and the effort of dressing up from my normal sweats/shorts and ragged shirt ( bumming about clothes ) isn’t worth most of what K-Mart sells.  Granted, a lot of that has to do with the fact that I simply don’t need much of anything.  I’m stockpiled rather well.  A little bit has to do with the fact that I’m only stocked rather well because I don’t need all that much to begin with and almost everything everyone sells is just Dust Catchers, frilly crap only designed to look good.
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But K-Mart on the whole has managed over the last two decades to have less and less stocked to the point no matter how hard you try you can’t find anything you need, and if you do find it the price is ridiculous ( even in many instances AFTER the 50% off sale ) and/or the quality is pure D crap.  It is a nicer garage sale, basically.  For all I complain about Wal-Mart carrying nothing I’ll buy because of extreme poor quality, at least they stuff ten times the choices into the same square footage as K-Mart.  And at least they carry a FEW quality items, primarily in the health and beauty section, at genuine bargain prices.  My hand lotion, acid pills, toothpaste and the like.  That is why we only go to Wally quarterly.  There are only a few dozen items we’ll buy there and we stock up.
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K-Mart has none of the few virtues of Wal-Mart.  None.  Other than woman’s clothing or tourist retail locations, or McDonalds now that every single menu item is retched slop that turns to bloody razor blades in my stomach, I can’t think of another store as worthless as K-Mart.  They carry overpriced low quality items in a huge space that is surprisingly low on choices.  And that got me thinking.  Every working drone in suburbia is exactly like K-Mart.  Everything they own was way overpriced at its cash price but REALLY overpriced bought on credit,  the quality is almost universally low, and nobody wants it even if the price is almost free.
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These are your assets.  Your quarter million dollar house isn’t worth 10% of that, as illegal immigrants used Home Depot shopping to slap together a crap pile in a hurry using low quality Chinese supplies.  Behind its pretty stucco façade lies piles of mold and rust.  The high price is a bubble, and yes, it is the same as 2006.  The difference then was that the common man could flip for profit.  Now only the banks can.  Your car, for the last ten years, has been made on Microsoft run computer chips and plastic, and doubled in price.  It isn’t worth ten percent of that, either, except in our current Bubble World.
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Everything else you own is in far worse shape than your car or home, even that huge arsenal you love to brag about ( I have to agree with GhostSniper on this one.  An actual quality AR is $2k.  That would align it closer to inflation, and just like a hunting rifle that didn’t increase in price because its quality dropped, a lowered price AR doesn’t mean it is a good weapon.  It also might be your only option ).  When, not if but when you get into trouble financially because, I mean DUH, when companies survive by cheating customers or losing money on sales to make a profit off of the stock market bubble, and then they lose customers or go bankrupt with the stock market, none of your jobs are safe.  As night follows day, unemployment follows unprofitable corporations. 
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If nothing you have is close to the sales price in value, and you are forced to try to sell it, how much do you imagine you’ll ever get for it when everyone else is attempting the same desperate sales event?  It won’t sell.  Not for a quarter on the dollar, not for a dime on the dollar, and I’d even wager not until you sell for fractions of a penny on the dollar.  If you do not panic now and avoid the rush, your assets will essentially be worthless.  Look at the just told minion tale of trying to dump a Mini-14, in stainless steel WITH a new and improved heavier barrel.  Nobody wanted it because of AR Fever, but also because almost everyone believes they sell at too high of a price for their value.  Which is vastly over rated.
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Almost all assets are grossly overrated in value today.  It is one thing to have something overpriced, in a supply and demand situation.  But instead we have an over value situation with even things not selling and under no demand priced way too high.  Everything in K-Mart, homes, cars, and near everything else.  In markets with vast oversupply and no demand, prices stay insanely high.  Everything seems to be K-Mart today.  Don’t follow the K-Mart bankruptcy model, desperately trying to sell crap nobody wants at imagined “low” prices.  You need to sell way before bankruptcy, while everyone is buying at inflated prices.  While they can.
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In a bubble, folks are afraid of selling for a 100% profit, because they know it will get to 1,000% profit.  Yet, once the bubble bursts, the price goes to 1/10th of 1% of your original cost.  Sell on the upside, no matter how much you lose, or you’ll get nothing.  In your case, liquidating over valued items, you are “winning” by selling at a quarter or dime on the dollar.  If you wait too long, they will not sell and you have illiquid assets.  You will have everything you own be tied up in eight track tapes.  You can’t give those away for free, literally.  That is the future of your crap McMansion and crap Detroit iron.  Sell while the suckers think they are getting a bargain.  Or, keep that Enron stock and see where it gets you.
( .Y. )
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44 comments:

  1. Yes Jim. Americe in most places are only incidental shopping, occuring at ghetto stores (dollar or the pharmacy all in one types) as they just get perishables like milk, bread, etc. and an occasional impulse type purchase. The days of casually shopping a nice full stocked multi departmental store, filling your cart with decent products, like days of old are over. Minions who converted to your belief system and still have leftover vestiges of those golden days will be like my neighbors. They hold yard sales with old, outdated, useless junk that they payed too much for back then and now no body wants it, needs it, or will pay even pennies on the dollar for it as they are nowadays holding what money they have left in a tight fist like a jewish grandmother. Streamline down gear now. The rest is clutter that will burn up in that house you torch as your departing and evacuating the collapsed apocalypse suburbs

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    1. Hoymal, Hoymal, come and take a look at this. Five cents off! Jewish grandma. Ha!

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  2. The only reason I have willingly gone into a K Mart in a decade or more is because after they got bought by Sears, they started selling Craftsman tools. Shortly after that, Craftsman quality hit the bottom of the round file.
    I do find it funny that a company like Sears that has been struggling for years to stay afloat decided to buy a matching turd. They were the original Amazon or E bay back in 1903, why couldn't they just go back to what worked? Oh well, I can't say I would miss either one.
    As far as the bubble goes, I don't worry too much about it. But now I am insulated a fair amount from it. If my land magically goes from a worth of 1k down to 100 dollars, I am good with that, just make sure the property tax reflects that you sorry assessors :) I didn't buy it to make money, I bought it because it gives me a place to stay. Same thing for almost anything I own. So let the bubble bursting begin, I have a jar of popcorn somewhere here in my hotel.

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    1. I was last in a Sears in the 1980's. Once I no longer needed a credit card to buy a TV ( remember those days? ), they had nothing to offer I needed. Plus, I never forgave them or K-Mart for playing the anti-gun card.

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  3. Ours was one of the Kmarts that closed. As much as we hated for the people to lose their jobs, I doubt if I'd been in it for five years, for exactly all the reasons you give.

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    1. For a very short period of time, they had better quality items ( still short lived, but not AS short lived ) for the same price as Wally. That didn't last long. That was the only reason I went in at all the ten years I've been here. If you work in a K-Mart until they close, you have bigger problems than unemployment :)

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  4. This prompted me to look it up. Last time I was in a KMart was about 10 years ago, 25 miles from here, but now it's gone. I never even noticed. The area it was in was kinda run down and I rarely went around there. I remember when we did go in there the last time nothing was purchased, inventory was slight, vacant shelves, and a dingyness to the whole mess. And yes, expensive. Mismanagement.

    Now, for the meat.
    Everybody HAS to get used to the idea of inflation and the trickery that is obscuring it. It is far higher than you think. There is no such thing as a good pair of hiking boots for $50. Period. Those days are gone. The last 3 pair I bought were just over $100 and they are not like the $50 ones I bought 15 years ago. My wife just bought a pair of Saucony runners for $130, 3rd pair of runners in 2 months, and she's taking them back tomorrow like she did the others. No matter the brand, they all have a price that fits your budget, but their idea of budget might not be yours.

    Take Danner for instance, their bottom end boots are over $100 but they won't last a year under a workload but they fit your budget. If you know what to look for in advance you can see the tell-tale signs. Nope, if you want a quality boot these days, a boot that will last under load more than a couple years and still function and look decent, the price now is close to $200. Gasp. I know. Me too. You can buy a $200 pair of boots that work and look decent for 3-4 years or you can buy 4 pairs of $50 boots that last the same spread out time but look like hell most of the time, and you may get foot problems from them.

    Same with garments, tools, food, and everything else.
    Know why a heart job at the hospital costs half a mil?
    Cause the old $20k version from back in the 70's is now medical experimentation for students and somebody has to pay for that stuff! Spend less by spending smart and spending infrequently. Starting this Wed I'm gonna see if I can go 30 days without spending any money at all. hee-yahhh

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    1. I'm the first one to scream from the rooftops hyperinflation is coming as the dollar reign ends, and yet do not see the quality price issue you describe. I know it is there. My problem is that I see robotics, low wages overseas, relatively low oil prices, low commodity prices, and cannot square that with what products cost. It gets even worse when you factor in wage deflation. Saying "the mass production oil age industrial age paradigm is broken" is one thing, it is quite another to function in that reality. How does an entire industry in a supposed competitive market see $5 in materials and $5 in labor translated as losing money at a retail price of $60? Is it really all going to the bankers? Just like property taxes, I expect a 10% increase every year with no services offered in return. It is just the vig for being allowed to live. I want to know where it is all going. It isn't wages or materials. So perhaps my biggest reason for my blind spot in accepting the cost of living is my reluctance to participate. Especially without explanation.

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    2. There are unbelievably high costs associated with business that most people are unaware of but have heard of, it's called "gov't regulations" and they are imposed to one degree or another on almost all businesses, at least those businesses that are interested in obeying the law.

      I tried to bid on a gov't job about 25 years ago and I just couldn't do it. First, just to understand the requirements the gov't issued for the project would have required me to hire a law firm to check it out for me because it was just way too much for a mere mortal to comprehend. The scope of the thing was such that my costs would have been 10 times as high as if I had done the same project for a company in the private sector. A certain percentage of the people I used to do the project had to be, um, minorities whether they were on my payroll already or not. These employees were required to have 15 minute breaks every 2 hours. And on and on, over 100 pages worth. None of this stuff has anything to do with the project itself but added deeply to the overall cost of everything. In all the years up to that point it was the only project I tried to get but had to bow out of. The risk was just not worth it. Keep in mind this was just to "bid" on the project, not the project itself. I could have jumped through all those hoops, spent money left and right, and then been outbid by someone that already knew how to play the game. Of the $200 that is spent on those Danner boots, Danner still only receives their 8% profit, the rest is eaten up by the gov't, and nobody gets any benefit from it except parasites and thieves. Gov't regulations - the hidden tax.

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    3. Small business is the ones who can't afford the regulations put there on behest of large corporations to ruin the competition. Are you claiming the big boys can't avoid much of that? At the very least, the cost per unit of production should be much lower than you claim. Corporations move to the lowest tax climate. I understand regulations are a hidden tax-I'm saying it effects the big boys far less than the small companies. I have a hard time believing Danner gets $16 profit on the boots and the rest is split between distributors, retailers and the government to that degree of mark-up. Not calling you a liar. I'm saying someone would cut profit margins to gain business if it was possible. Otherwise you are claiming gov regulations are half the retail cost. If they are in the lowest tax and lowest regulation country, like China, how does that make sense?

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    4. A rule of thumb I have been told by more than one source is whatever you're paid, double it, and that's what it's costing your employer to hire you. (payroll tax, providing amenities, insurance, retirement, holidays etc etc). It's not quite as high as double but near enough.

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    5. I can't do this discussion justice cause it is deep. Back in the 90's I heard G Gordon Liddy do about a 30 minute monologue on the stacked up taxation that occurs all the way up the line from raw materials to final product and the amount is breathtaking.

      Yes, I am aware of the anti-competition regulations you speak of, I have been victimized by them too, but the built-in stuff for anyone that does business with the gov't.

      During the period of the project I mentioned before I had 4 large format printers in my office that were busy all the time. They D size (24"x36" sheets of paper) HP deskjet plotters. Well guess what. The project in question was to be created on E size pages, 30"x42", so my $10k worth of printers would not do and I'd have to outsource all of the printing associated with that project and once again jacking up the price demonstrably. Do you suppose the international large format printers union solicited the gov't mafia to do that so that little guys me will buckle?
      No, so asswipe in the gov't chain made that decision and didn't give one goddam about who it effected.

      The long and short of it is the taxpayers got shafted on that project because I have a long history of winning bids on private sector jobs and would have won the gov't project too if it had been reasonably set up from the beginning. When you drive by a road construction project and there are 5 people standing around leaning on shovels and 1 messican down in the hole digging you can thank gov't regulations. The cost to the taxpayers for each one of those people exceeds $200/hr whether they do anything or not. Now you know why it costs $10mil per mile to repave a state highway. As "that" woman has said, eventually no one will be able to conduct business except the criminals.

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    6. I've heard of the "57 taxes on a Big Mac" type of thing, and I've seen figures showing most items cost 25% more because all the taxes, but that is as far as the details go for me. From what you are saying I was only getting the happy version of it.

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  5. Minions must slowly and with religous fervor work towards the objective of the ability to flip a light switch and "go dark" consumeristic likewise. If not, then they are just a punk-assed (yes, said it= fits description) slave to the system. 90 days of not leaving compound for supplies or 'lonely me' contacts are minimum. Urban, fake money zones are all giddy with growth (?) and activity. Do not be fooled, this sucka is going down. Be alert while bike riding around, as there may be an old timer with last century hand/power "legacy" tools that are hens tooth quality. Be discerning for diamond in the rough opportunities. Every thing a minion has now may be all that is ever available, forever. Prepare accordingly.

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    1. Might just have to wait for reemerging cottage industries to offer quality goods again. That won't include ammo. All that there ever will be, indeed.

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  6. I am not the gun nut that I used to be but there is something sweet about holding a Mini-14 that isn't there with an overpriced Mattel Toy company plastic wannabe M-16. Plastic guns for those who grew up playing with plastic guns. Hell, you know James. An M-1 or an Enfield or a Mosin Nagant are rifles! As far as Kmart is concerned. Our local one is gone! boarded up, for rent. No great loss in my view.

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    1. I remember throwing a fuss as a young lad-probably five years old. Dad had cut me out an M1 Garand toy gun. I wanted it in the shape of the cool gun on TV, the M16. Now I prefer wooden stocks. Perhaps dad saved me from myself.

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  7. Don't get me started about boots. Well shoes in my anecdote. I paid 200 Dingo bucks or 11 hours post expenses and taxes wages. Fricken things are showing signs of wear and tear after a month of walking.

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    1. It is pretty bad when you get less value for your money for footwear than you do from your wife ( kidding! )

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    2. Well, there's money, and there's quality, and they ain't necessarily married to each other. You gotta know what to look for in order to get quality. Just because something is expensive is no guarantee it's good stuff. Take a good hard look at them $200 boots and learn something from them. There's a phrase in the building industry that goes like this: "You can't buy quality construction, but you can supervise it." Ponder that for a bit.

      "If people bought nothing by products wrought in quality very little buying would be going on in the 21st century, because it is rare and very expensive."
      --gs, 2099

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    3. That $35k car is expensive, but it sure ain't quality. I'm still pondering that confusing tidbit :)

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  8. https://www.washingtonexaminer.com/policy/energy/expert-makes-the-case-for-400-per-barrel-oil

    It’s not peak oil, but this would surely sink the system. It’s be $15-20 per gal for gas.

    Trying selling that $50k truck when gas is that high. Oh, and the bank still wants their money even though you can’t afford to drive to work or by groceries.

    Maybe the guy isn’t an “expert”. Who knows?

    JeSteR

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    1. There are so many factors at play. The laws for low sulfur fuel seem to be voluntary, and more oil is crap oil, so I don't see many strictly adhering. The rest of the world may have far more affordable oil than the US, if the PetroDollar fails. We could see $400 oil and they could still be at $100 ( paid in other currencies ). Also, there is a lot of slack in the system. How many unnecessary miles do we drive, altered by higher prices? How much less retail will we be hauling? Oil prices could increase just because of increased domestic demand in oil exporting countries. World trade demand could keep shrinking. The major oil companies could go bankrupt, as could the fracking fools. Many variables. The article skims one, doing it little justice. Typical "journalism" today.

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    2. True. It’s a multi-faceted issue, but all of those things aren’t going to happen at once. Got to keep our eye out for the 50m target when scanning.

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  9. I can remember back when Kmart was the only low cost game in town (Walmart didn’t come until much later). We had a few in our area, along with a Sears. It wasn’t such a bad place at the time, and they also had quite a bit of sporting goods related stuff, including guns (later to be phased out).

    I wonder if it’s worth an attempt at making homemade shoes? I’ll bet Tandy leather sells some kits of the sort, or at the very least, moccasin kits. My grandfather was a cobbler during WW2. Shoe repair became the norm after leather and rubber were rationed, making shoes difficult to come by, or expensive. I guess that tells you that the quality of the old shoes must have been pretty good, in order to make it practical to repair them.

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    1. Adam Sandler was in some bizarre movie, "Cobbler" or "The Cobbler". Kind of artsy, not terribly bad. Was on Netflix or Amazon. It wasn't really shown, just a few teasers, but it was interesting in what it showed as far as shoe repair. If you can watch it free it might be worth it just for that ( MIGHT! No guarantees ). I loved K-Mart as a kid, the Slupees were a rare treat, always plenty of window shopping, but that was the last time I enjoyed it except the Slupees when I lived in Florida. Terrible for you, the syrup rolled in your gut going back out in the heat to bike ride, but a blast from childhood past. All imitator brands were never close to as good.

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    2. That one must of got by me, because I’ve never heard of it. I remember back in the 90’s when I had some Adam Sandler CD’s. The dude was pretty funny, and I think that my favorites were probably The Goat, Do it for Mama, and Tollbooth Willy. The one with the fag robot (A later one) is also kinda funny.

      Adam Sandler - Gay Robot

      https://www.youtube.com/watch?v=fsFm7KfhGdI

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    3. When I was 15 and got my first paycheck from working at McDonalds I rushed to KMart and bought a Lloyds (remember them?) AM-FM cassette tape player and the Credence Clear Water tape "Cosmo's Factory". KMart was the leading big box back then circa 1970.

      I wanted to buy some leather for a small project a few years ago and found Tandy very expensive. Checked several other places online and they were all too expensive. At Hobby Lobby I found a bag of "scraps" of leather that provided a few pieces that were big enough to do what I wanted, for about $10. I took a leathercraft course in school way back when so I have a basic understanding of the process and the tools. Like all other hobbies you can tie up a lot green just getting started but it get's less expensive over time if you keep at it. The problem with getting shoes repaired now is that they are manufactured in such a way that repairing is very difficult (expensive) or impossible. Back in the 60's I remember my mother turning us kids shoes in to have 1/2 soles put on them cause we wore em out. Back then you fixed stuff cause it was fixable, today's stuff is made so that all you can do is throw it and get new stuff. And the landfills grow by leaps and bounds.

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    4. I think most shoes are synthetics and glue. I can't image they are even trying to make it a value for its 7 friggin billion customers. What's to repair? Yet, what's so expensive to replace?

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  10. Yep minions of the age that remember the good ol days of decent shopping at retailers that still gave a shit. The legacy retailers like montgomery wards, sears, kmart etc. are in death throes like greater 'merica. It is mostly clap trap operations like wally world putting out cheapest possible items for the remnants of the slaughtered middle class america to spend the 25% of purchasing power left in their dollars. Just buy three toasters at a time. Two will break-burn out and at least you will have one left in use after the collapse and trade stoppage from the only factories left on the other side of the planet. This is gonna be fun!

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  11. The last 4 years I have bought hiking shoes and running shoes at costco for 20 dollars. The sell them twice a year. I get about a year out of each pair. Now they ain't your yuppie brands like Nike but your lower class brands. My last pair of runners are pumas and the hikers are fila. Not high class but good enough for white trash. Just look for the sale.

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    1. Not working outside now, I can return back to sneakers rather than boots if I must. I just hate to. But then, I don't have a FN-FAL or a 40y/o wife, either, do I? The town has a outlet that sells low price name brand athletic shoes.

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  12. I wanted to thank you, Lord Bison, for reminding me to shop the Wal-Mart back to school sales for memory sticks. Found the $5 32 Gig sticks and bought five of them. Normally run about $12 - $15 bucks apiece. Celebrated that victory with purchase of box of ammunition, 'cause that stuff is ALWAYS a wise purchase.

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    1. Hey, I got lucky and blundered in when the sale was there-it wasn't planned. Thought I should share the savings with the minions. If you go through a lot of memory sticks but only need MB's instead of GB's:
      https://amzn.to/2LKZUcr
      $2 each in lots of 10.

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    2. Excellent! Thanks for the tip. My wife is always sending stuff back and forth to our son in FL and her aunt in N Indy on USB drives and right now all of them are in transit somewhere. We just talked about this last night. So I just ordered 1 group of 10 and might get another later on.

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    3. It seemed retarded to me to have a $5 USB when I'm sending essentially a few floppy discs of info. These go a long way towards getting back to a sane price point. I couldn't believe I never found them before. It is like not asking the exact correct search term on Google, looking for some stuff on Amazon. I'm making a note to add it to my Bulk Buy Amazon page. I wasn't sure I was the only one who could use such "low data" discs. So thank YOU.

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  13. “That $35k car is expensive, but it sure ain't quality.”


    Absolutely true. I remember our old 64 Chevrolet pickup. We would still have it to this day if it weren’t for my foolishness (which for the sake of brevity, I’ll spare you the details). That thing was a tank. I don’t care what anyone says; you could spend a few grand, be money ahead, and totally rebuild that old car, and it will go for a few more decades, long after the newer car with its space materials has decomposed.

    128mb? I didn’t even know that they made memory that small? Even large photos would fill that up pretty quick. Be careful when buying memory sticks. It pays to spend a little extra and get a brand name that lasts. You don’t have to pay a fortune, but try to stay with brand names when it comes to memory, if possible (I know this from experience). Here’s the last memory stick purchase that I made. So far, I’ve only used one, but no issues.

    https://www.amazon.com/gp/product/B00E80RYUC/ref=oh_aui_detailpage_o06_s00?ie=UTF8&psc=1

    The cheapest leather I got was from a deer hunter. We were at my grandfathers property in Kalifornia gold country. I asked the dude what he planned on doing with the deer hide. He said that he was going to throw it out, and that I could have it. I took it to the taxidermist to be tanned, and it took several months, but it was cheap to tan it. I suppose that this would make a fine pair of moccasins, but they would be more durable if you could incorporate a tire sole onto them. Even if you don’t hunt, you can keep your eye out for fresh road kill, and get your leather that way.

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    1. With me, I waste most space on memory drives-just being text. The one I linked has excellent customer reviews. And a lot of them. Surprisingly, I've had great luck with Sandisk from Wally.

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    2. I have 1 USB laying here, 128mb, that I use to transfer files from my WinXP machine to my Win10 machine. The XP is my design machine, has my old AutoCAD 2004 on it and thats how I do all my design work, but it no longer works online. My Win10 machine is so dysfunctional from a user standpoint that all it is used for is online stuff. So I do my work on XP, then use the 128gb to move files to the 10, then email the files to my clients. Its at least 10 years old and it's the Memorex brand. I have 3 128gb USB's, Kingston brand, that have my business backup files on them. I'm a strong believer in multiple back-ups for serious stuff. Murphy's always lying in wait ya know.

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    3. I have a stupid amount of back-up for all my writing. Most of the blog stuff is really just throw-away newspaper article level value. But memory is so damn cheap it is retarded to not have three/four back-ups or so. Online, current USB, 2nd USB, old USB so I only lose one year rather than twelve, and CD-ROM to the old USB.

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  14. saw part of an advert for an aquaponics system but the first part explains the glaciation cycles so that helped me understand hat 'global warming' is not what has benn presented.
    megadroughtexposed.com
    hope it is factual and interests you, o man with a magnificent mane.

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