Economics and Investing:

Do you recall the warnings that I’ve made, starting in 2006, about derivatives counterparty risk? Well, CDS paper is just one aspect: Pressure to reveal major AIG counterparties grows.Stay tuned, as the economic depression unfolds, and we see hundreds of counterparties cease to exist. Who will get caught holding the bag? I spotted this linked at Drudge: 12 percent are behind on mortgage or in foreclosure. “A stunning 48 percent of the nation’s homeowners who have a subprime, adjustable-rate mortgage are behind on their payments or in foreclosure…” From reader Mike K.: We Are Facing an ‘Inflation Holocaust’: Jim Rogers. …


Odds ‘n Sods:

Luddite Jean, reporting from Nanny State Britannia, tells us that eBay.UK and eBay Ireland are banning most knife sales, starting March 10th. The only exception will be some kitchen cutlery. (But not any sharp, pointy knives, those might be dangerous!) The logic of this move escapes me. Ostensibly, this is being done “…to help further protect our members…” So henceforth, law-abiding Englishmen will have to rely on just ASBOs and harsh language to fend off the yobs.    o o o J. in Northern California sent us this link to articles on some huge prisoner releases caused by the state …



Note from JWR:

I was just quoted again in The New York Times, by Adam Cohen: Out of Work? Read a Recession Blog. Or, Better Yet, Write One. — The high bid in the SurvivalBlog Benefit Auction is now at $1,110. This auction is for a large mixed lot, which includes:: 1.) Another “be ready to barter” box of 38 full-capacity gun magazines, from my personal collection in JASBORR. This box includes: 4 – Used original East German 30 rd. steel AK-47 magazines in a “raindrop” camouflage pattern belt pouch, 12 – Excellent-to-new condition original Bundeswehr contract HK91 (G3) alloy 20 round magazines, …


Letter Re: Best Shotgun Pellet Size for Home Defense?

Sir; I recently got a Mossberg “Mariner” [12 gauge pump action] shotgun as my main home defense type gun. What size shot should I use for home defense? (The owner of my nearby gun shop said to use #8 bird shot, since buckshot or rifle[d] slugs ‘will go though two houses.” Is that true?) Thx, – Perry Noid in St. Paul, Minnesota JWR Replies: I’m afraid that your local gun shop owner was spouting some oft-quoted urban folklore. For some genuine, Grade-A, tested truth on this subject, see this Box ‘OTruth article. For what it’s worth, I am still a …


Letter Re: The Impact of FDIC Insurance Rate Increases on Small Banks

Mr. Rawles, We live in mostly rural northeastern Oklahoma. Our local newspaper just printed an informative editorial about FDIC changes which result in huge fee increases for member bank. Here is an excerpt from the editorial Oklahoma banks paying price for bailouts: “Imagine paying $500 per year for your car insurance and then being told it had gone up to $4,000 even though you have been a perfect driver with no accidents, no moving violations. That’s the magnitude of premium increases local bankers are facing. The local banks I spoke to had no part in the sub-prime loan implosion and …


Two Letters Re: Voting With Your Feet–Comparing Economic Freedom in the 50 States

Jim: When I read that academic study of economic freedom in the various states, and saw the summary map, it was a strong piece of “ah-ha” confirmation for me. It immediately struck me that what a close correlation there is to what you had posted two years ago in your State Rankings on places to move with the best retreat potential. [in 19 western states.] Independently, you nailed those recommendations squarely, sir. Bonus Brownie points for you! Wishing You The Lord’s Blessings, – Ted J. JWR, I read through the PDF that you mention in your “Voting with your feet” …


Economics and Investing:

HPD flagged a sobering article from The Market Ticker: What’s Dead (Short Answer: All Of It) It is amazing seeing something like this coming from a relatively mainstream blogger like Karl Denninger: “Civil unrest will break out before the end of the year. The [active component] Military and [National] Guard will be called up to try to stop it. They won’t be able to. Big cities are at risk of becoming a free-fire death zone. If you live in one, figure out how you can get out and live somewhere else if you detect signs that yours is starting to …


Odds ‘n Sods:

William B. alerted us to an economy story from South Korea that is actually a preparedness story if you read between the lines: Empty Containers Clog South Korea’s Busan Port as Trade Slumps. We can safely conclude that it is just a matter of time before the price of used CONEX containers plummets. As previously noted in SurvivalBlog, CONEXes have potential for aboveground storage, and even conversion into housing. (On the latter, just ask any returning Iraq vet about “CHU” billets.) OBTW, the ones to look for are they type made with Corten (aka “Weathering”) steel. Just don’t make the …



Notes from JWR:

Notes from JWR: Since SurvivalBlog’s readership is growing so quickly, I’ve been overwhelmed with questions from newbies. To help folks get up to speed quickly, I just created a new static page: SurvivalBlog’s Quick-Start Guide for Preparedness Newbies. It can also be accessed by clicking the “Getting Started” button in our top bar. — A brief reminder that Safecastle’s “Ratcheting Rewards” 25% off sale on 30-year shelf life Mountain House canned foods is expiring at midnight (Eastern time) on Friday, March 6th. Get your order in soon!


Aids to Mapping Your G.O.O.D. Routes

Mr. Rawles, I appreciate everything you do to keep everyone working toward preparing. To that end I would like to supplement your notes with a product I have been using for a few weeks now that have greatly improved my Get Out of Dodge (G.O.O.D.) plans. Along with US Geological maps I have used the excellent Delorme Atlas and Gazetteer to plan my back road escape routes. Recently I found that they now offer ($29.95 plus the cost of the software) an “all you can use” annual subscription to their entire map collection in digital format. Unfortunately you do need …


Letter Re: Learning Beekeeping is Worthwhile for Self-Sufficiency

Hi Jim – I am a beekeeper and would recommend your readers look into the option of keeping bees. Honey bees produce food that stores without excessive processing (it has two things to fight spoilage, a natural antibiotic and the sugar concentration is so high it won’t support bacterial growth). I use the conventional Langstroth bee boxes but a person desiring to use the bees for home or farm could benefit by using the inexpensive top bar hive method. The top bar hive produces comb honey and the wax makes great candles. Top bar hives are not migratory in nature …


Letter Re: Cloudcroft, New Mexico as a Retreat Locale

Mr. Rawles, I read your book “Rawles on Retreats and Relocation“, which is a very good resource. In it, you didn’t mention one area that interested me a little bit, and that was the area around the Lincoln National Forest, near Cloudcroft, New Mexico. I’ve driven through there a few times, and it might do well in a depression. Of course, it’s too close to the Mexican border, which might lead to a problem, though I’m not sure which direction the refugees will be heading. You probably heard that the mayor of Juarez has sent his family to El Paso …


Four Letters Re: 3-in-1 Home Workshop Machines

JWR, I agree with you on the machine tool issue. You end up with a lot of tooling and accessories by buying a shop. Things like rotary tables, angle plates and clamping stuff make this approach a bargain. A few grand goes a long way if you dig into [the replacement costs]. Like you say, [in the depth of the recession] there will be a lot of stuff out there. I have a good set of machinist tools but no machines and have been thinking the same thing. I have millwrighted machines for people from closed machine shops. I used …