Guest Editorial: Honey, I Vaporized My Customers, by John Mauldin

By now, everyone knows that the subprime crisis started with non-existent lending standards which resulted in the large numbers of foreclosures we are seeing today. Those foreclosures will be rising throughout the year. We are not near anything like the top of the rising number of foreclosures. Ben Bernanke said last July that losses from the subprime would be in the $100 billion dollar range. True confession. I think I wrote six months earlier that it would be $200 billion. I point that out to make the point that I am an optimist by nature. The latest “bidding war” number …


Letter Re: Forever Postage Stamps as an Inflation Hedge

Sir; You have written favorably of the US Postal Service Liberty Bell (“Forever”) stamps. Short history: The US Post Office Department was reorganized and became the US Postal Service effective July 1971. Employees of the Post Office then became employees of the Postal Service, but saw no changes in their paychecks. They looked the same. More recently, the Postal Service has likely accumulated significant cash from selling the “Forever” series. The government’s pledge is that the stamps will henceforth be honored as postage without supplement……no more adding one or two cent stamps’ postage (or more) to the already purchased forever …


Odds ‘n Sods:

J. Ross sent us some serious Gloom und Doom: Fed Heads Back to the Well, Will It Run Dry?    o o o Trevor flagged this piece at WND: Fed abandons dollar in new round of rate cuts–Reacts to fall of investment giant Bear Stearns, Carlyle Capital Corp.    o o o Mark recommended the rifle muzzle brakes made by OPS. We have had the muzzles of all of our .30 caliber bolt actions threaded 1/2-28. That is the same thread used on many flash hiders (such as AR-15, M4 and AR-10.) Our preferred flash hider is the Vortex Model …


Jim’s Quote of the Day:

“The first information survival skill we all need is the ability to decode propaganda and demythologize the highly commercialized and entertainment-based U.S. culture. Psychologists politely call it ‘resistance to enculturation.’ Writer Ernest Hemingway had a less elegant term: ‘cr*p detecting.’” – Karl Albrecht, article in Training and Development magazine, February 2001.


Hedge Fund Redemption Suspensions–Tax Bills are Adding Insult to Injury

You’ve probably read about the seven Hedge Funds controlling $5.4 Billion have been forced to liquidate or suspend redemptions in the past month. Many of their investors had been leaving their full principal intact, quarter after quarter. In many many cases they want to continue to “let it all roll”, so they then used other funds to pay the tax bills on their hedge fund earnings. But now, with redemptions (cash outs) halted, not only will they lose most or all of their principal, but they must also pay the 2007 income tax on the “gain” for the calendar year. …


Five Letters Re: Battle Rifle Recommendations for a Californian

Mr. Rawles: One way that U.S. citizens can still get M1 Garand rifles at reasonable prices is via the DoD‘s Civilian Marksmanship Program (CMP). M1 Garands are available starting at $445 + shipping. (I believe the Field Grades to be best choice for practical use rifles–$495) M1 Carbines are available for $419 + shipping and up. [JWR Adds: I do not recommend M1 Carbines, because they are chambered for an anemic cartridge. The .30 US Carbine is not a reliable man stopper!] .30-06 military surplus ammunition in clips, bandoleers and sealed cans, for $200 per case of 768 rounds. Requirements: …


Odds ‘n Sods:

Todd Savage found this gem: Dollar Bear: The road to hyper-inflation    o o o Mark mentioned the M3 Medical kits available from JRH Enterprises, with fresh components    o o o Eric spotted this at MarketWatch: Wall Street watches Lehman walk on thin ice    o o o Another piece courtesy of Eric: Gulf central banks urged to sever links with tumbling US dollar


Jim’s Quote of the Day:

“The argument for liberty is not an argument against organization, which is one of the most powerful tools human reason can employ, but an argument against all exclusive, privileged, monopolistic organization, against the use of coercion to prevent others from doing better.” – Friedrich August von Hayek (1899-1992), Nobel Laureate of Economic Sciences 1974


Note from JWR:

The high bid in the current SurvivalBlog Benefit Auction lot is now at $210. This auction is for four items: a MURS Alert Base station, a MURS Alert Hand-held transceiver, an earbud, and a Kaito KA-1102 AM/FM/Shortwave. These radios were kindly donated by the owner of Affordable Shortwaves and MURS Radios. If you aren’t familiar with the Dakota Alert infrared perimeter security system, take a few minute to look at the Dakota Alert web site. These alarms are very reliable and versatile. I often recommend them to my consulting clients–especially those that plan to have lightly-manned retreats. You can easily …


America’s Mountain of Debt: The Good, the Bad, and the Ugly

Collectively, Americans have accumulated a mountain of public and private debt in the past 20 years. The essential nature of all debts is that they someday must be repaid. Debts can be broken down into three categories: The Good. This is debt with low fixed interest rates, secured by tangible assets that have value that exceeds the amount of the loan. Everything is copasetic as long as the borrowers have a steady cash flow and can make their payments The Bad. This is debt that is either insufficiently secured, or that has a nasty contractual surprise waiting, such as an …


Letter Re: Galloping Bulk Food Prices

James, Just a quick report on what I’ve learned about buying bulk grains and beans. We have a local bulk food depot. I called to place an order. The guy checked with his wholesaler for prices, then called me back. He was aghast. He said everything was up around 25% since he had placed his last order two weeks ago. And up about 100% since the first of the year. The reason, the wholesaler reported, was demand from folks stocking up. The wholesaler was sold out of many items. Then I called an Amish bulk food store about an hour …


Letter Re: Surplus Ambulances as BOVs

Mr. Rawles I am a long time lurker on your site and would first like to thank you for all you do. I learn much from your site and finally read a topic I have some knowledge of. I operate a large ambulance service (75 units) and read the article about using ambulances as BOVs. I thought I might make a few observations. It is true that the truck type ambulance have factory 4WD. However the majority of van type units have good aftermarket conversions. Most are done by Quimby. In fact I would only purchase a van type 4×4 …


Debate on Pending Legislation Reveals the Depth of Debasement of Our Currency and Coinage

The US House of Representatives is currently debating HR 5512, (the “Coin Modernization and Taxpayer Savings Act of 2008”) legislation that would further debase our coinage. According to a article in The Chicago Tribune titled Change for a Penny?, pennies will soon be made of steel instead of zinc. Although the bill leaves it up to the Treasury, presumably, five cent pieces would be made of zinc instead of their current alloy of copper and nickel. I’ve warned SurvivalBlog readers that this was coming, and that they should start saving nickels. Coincidentally, reader RBS sent us a link to an …



Jim’s Quote of the Day:

"We are now experiencing the first truly major crisis of financial globalization. Never before have banks seen such destruction of their balance sheets in such a short time. Moreover, there are signs that the problems are spreading. The risk premiums on commercial property, consumer credit and corporate loans have risen sharply." – Swiss central bank governor Philipp Hildebrand, quoted March 12, 2008