Month: September 2009

Economics and Investing:

Items from KAF: Gold Increases 2.3% as Greenback Drops China Pushes Silver and Gold Investment to the Masses Hong Kong Recalls Gold Reserves, Touts High-Security Vault Retailers Report Sales Decline for August More Americans than Anticipated File Jobless Claims Sugar May Drop 24% as Demand Stalls, Supply Grows Edinburgh Hedge Fund Feel Madoff Effect as Clients Get Pickier HSBC Says Switzerland Luring More Rich Foreigners as Taxes Rise And from HH: The $531 Trillion Dollar Derivatives Time Bomb The Nightmare of Contemplating Global Derivatives Fed Secretive for Good Reason Investors Rush into Gold Like 1849 Items from The Economatrix: The …


Odds ‘n Sods:

America’s Breadbasket Drying Up (What the article doesn’t explain is that half of this drought is political–since California Aqueduct water has been diverted from many farmers. California’s water politics are Machiavellian.)    o o o When is a nickel not just five cents? By chance, I got a fine condition 1944-P War Nickel in change at the local US post office today. (These are 35% silver, with a current melt value of about 90.1 cents per coin, their numismatic value is a bit higher.)



Note from JWR:

After the large response to SurvivalBlog’s July survey on non-fiction books, I’m starting a new one: What are Your Favorite Survivalist Fiction Books? Please e-mail us a list of your top 5-to-10 favorites, with the e-mail title “Books Survey Input”. If you’d like. you can also include another list of your favorite Survivalist Fiction Books for children and young adults. I’ll post the results in about three weeks. Thanks!


Letter Re: Thoughts on Shedding Bad Habits, and Developing Good Ones

Hi Mr. Rawles, I was thinking today about a section I read either on the blog or in the book about getting rid of any habits you may have. I instantly thought, “thank God I quit smoking” and left it at that. Until yesterday. I thought of all the things I do that are my habits that would not be there in a melt down. I found some that I just had not even thought about as being a bad habit that needed to be curbed. I am keeping a written diary of my habits to see where I need …


Letter Re: A Nation of Improvisers–More About Everyday Life in Communist Cuba

First our prayers are with your family in these dire times. The first thing about surviving in Cuba was that we did not see it as “surviving”, it was more like living, we did not know anything else, as the media in Cuba is tightly controlled. I remember as a child we did not have glue so we made glue out of Styrofoam and gasoline, just mix them up in a glass container that you could close to preserve and that’s it (if you go a little crazy on the gas it would be too liquid and take forever to …


Economics and Investing:

SEC’s Schapiro Calls Derivatives Data ‘Critical’ for Probe Jeff C. spotted this: IndyMac’s mortgage struggle. How does modifying a “liar loan” somehow magically make a semi-employed borrower credit worthy? From John in Ohio: Is America still depression-proof? Reader MSB mentioned: The Shell Game – How the Federal Reserve is Monetizing Debt Oldest Swiss Bank Tells Clients to Sell U.S. Assets or Leave (Thanks to DD for the link.) Exit strategy? Fed’s Plosser: U.S. rate increases could be rapid. (A tip of the hat to Brenda C. for the link.) JWR’s comment: This is starting to remind me of the policies …


Odds ‘n Sods:

Michael Z. Williamson, SurvivalBlog’s Editor at Large, sent this interesting article from The Atlantic: In Case of Emergency. The new FEMA Director wants American citizens to take charge when disaster strikes. Here is a key quote: “‘We need to change behavior in this country,’ he told about 400 emergency-management instructors at a conference in June, lambasting the ‘government-centric’ approach to disasters.”    o o o There is a great thread of discussion is in progress, over at TMM Forums: Use of antique or classic tractors for gulching    o o o A remake of Red Dawn? Reader B.H. sent us …



Notes from JWR:

There is some very significant news in today’s Economics and Investing section, so don’t overlook it. — Today we present guest article, some sage advice from veteran global affairs analyst by Don McAlvany, the editor of the highly-recommended McAlvany Intelligence Advisor. You’ll see that it synchs nicely with my own preparedness Precepts.


Guest Article: Disaster Preparedness–Principles of Self-Sufficiency, by Don McAlvany

1. Change the way you look at everything. Rethink your entire lifestyle. 2. Develop discernment about people. 3. When you invest, invest first in the right people. 4. Honesty, look at yourself, your strengths and your weaknesses. 5. Seek the counsel of others you trust. 6. Find like-minded people who can be part of a mutual support group and who you can cooperate with. 7. Find alternate methods for doing everything. 8. Develop an instinct for what doesn’t feel right. No matter how good something looks or sounds on the surface, go with your gut feeling, with your instinct, with …


Letter Re: A Practical Use for Post-1982 US Zinc Pennies

Sir: I just discovered your site this afternoon and look forward to perusing it in depth. I noted your response to the question about hoarding dimes and your reference to the metal content dollar value. Let me pass on a tip: hoard up a several pounds of pennies. Here’s why. As you know, pennies are roughly 97% zinc and 3% copper. To that mixture, one may add a few aluminum cans and minor amount of copper wire to bring the mix to 93% zinc, 3% copper, and 4% aluminum. This alloy melts at relatively low temperatures and is called “Zamak”. …


Letter Re: Advice on Camouflage Covers for LP/OPs

JWR, The arrival of my Cabela’s catalog today reminded me of how useful a layout blind might be for observation post (OP) duty. Your advice? Regards, ,- K. in Texas JWR Replies: Semi-permanent OPs should be custom-built, to as closely match the local vegetation, as possible. Any store-bought camouflage is a compromise, at best. Ideally, you should grow local vegetation over the top of an excavated position, for the ultimate in undetectable camouflage. Nothing mimics nature like nature itself. (Anything else that you use won’t look quite right, and of course it won’t gradually change colors to match, seasonally.) See …


Influenza Pandemic Update:

UN warns over swine flu in birds; The discovery of swine flu in turkeys in Chile raises concerns about the spread of the virus, a UN agency warns. How many recombinations will we see? New York Mayor To Announce Plans To Combat H1N1 In Schools Colombian President Uribe Ill With H1N1 Flu Hands-Off Plan: Schools Ban Touching to Fight H1N1 Advice on when flu needs TLC or a doctor’s care She’s walking the tightrope on flu; Minnesota’s top flu fighter balances the worst-case scenario with plans and hopes for avoiding it.


Economics and Investing:

This may be one of the most important pieces of economic news in many months, yet is did not receive much mainstream news coverage when the wire story was circulated yesterday: Beijing’s derivative default stance rattles market. This implications of state-owned Chinese industries being given carte blanche to nullify derivatives contracts are enormous. You’ll probably recall that I have been warning about derivatives counterparty risk for almost three years. And it was there that I specifically warned about the risk of “disappearing counterparties”. This new turn of events will likely shake the very foundations of the global derivatives markets. If …