Tom from Atlanta wrote to ask me about the recent drop in oil and precious metals, and the simultaneous rally in the US Dollar. He asked: “Does this mean the credit crisis is over, and that commodities will tank?” My answer: Not even close. Just take a look at the US Dollar Index chart. Print out that chart, slap a ruler on it, and draw a trend line. Now ask yourself: At the macro level, is there anything that has changed that will make the USD substantially stronger in the next few years? NO! So we can conclude that the recent spike in the USDX is simply a momentary pause for the down escalator. Just look at these short term counter-cyclical blips as a good buying opportunity to increase your precious metals holdings. Buy on the dips. As I’ve written before, 72 is the magic number to watch for on the USDX chart.
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Ben H. found this: Bacteria were the real killers in 1918 flu pandemic.
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Reader C.Z. e-mailed me to ask about a recommended supplier for low self discharge (LSD) nickel metal hydride (NiMH) batteries. I recommend All-Battery.com.
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The WRSA has another “Grid-Down Medical Course” scheduled to start this coming Monday. It is not too late to sign up. This one will be in Everett, Washington, September 12th to 14th. Their training is inexpensive, and highly recommended. This is also a great way to bump into fellow SurvivalBlog readers. (Wear your SurvivalBlog hat or t-shirt!)
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Currie sent a snippet from an article by Jim Quinn posted at LewRockwell.com: Is the U.S. Banking System Safe? Here is a key quote: “There are 8,500 banks in the U.S. Based on an independent analysis by Chris Whalen from Institutional Risk Analytics, they have identified 8% of all banks, or around 700 banks as troubled. This is quite a divergence from the FDIC estimate. Should you believe a governmental agency that wants the public to remain in the dark to avoid bank runs, or an independent analysis based upon balance sheet analysis? The implications of 700 institutions failing are huge. There is roughly $6.84 trillion in bank deposits. It is almost beyond belief that $2.6 trillion of these deposits are uninsured. There is only $274 billion of the $6.84 trillion as cash on hand at banks. This means that $6.5 trillion has been loaned to consumers, businesses, developers, etc. The FDIC has $53 billion to cover $6.84 trillion of deposits. Does that give you a warm feeling?” JWR’s comment: The table in the article that is titled: “Level 3 Assets as a % of Capital” says it all. There’s a bad moon rising.