Category: Current Events & Politics

Letter Re: Riots in Greece Illustrate How Quickly Things Can Get Schumeresque

Hi James, I have found so much value in your site, I have contributed to the 10 cent challenge multiple times. I have also spent several thousand dollars with your advertisers. I believe in supporting a site that provides so much value to me and family. I’m passing a couple items along you might find interesting. First, here’s a news item about riots in Greece. It just shows how a variety of things can trigger TSHTF and things can turn on a dime: Also, here’s an interesting personal story about always being prepared and testing your gear: The other night …


Letter Re: Is the US Residential Real Estate Market Nearing the Bottom?

Hello Mr. Rawles: Seeing that houses are pretty much dirt cheap right now, would it be a good decision to buy one? what would happen to our debts (including the mortgage) when/if the Amero comes? would they disappear like they claim the American debt will? I hear radio advertisements about the IRS giving you up to [a] $7,500 [interest-free loan] on your 2008 taxes if you buy a house in 2008. So, again, would it be a good idea? would the Dollar amount be converted into Ameros? Thanks in advance for your response. As always, congratulations on and thank you …


Letter Re: Comments on Two of the Three Bs: Bullets and Band-Aids

Greetings Jim, With [the] November 4th [US presidential and congressional election] behind us, many of us are wondering how to proceed with our preps. With regard to the bullets in the “Three B’s” consider this; your firearm will function with one magazine, most with even no magazine, but they all require ammunition. As a prep (as opposed to investment), I put forth that a good supply of ammunition is a higher priority than spare magazines, after purchasing the firearm, of course! In selecting a firearms battery, ammunition availability is a common selection criteria. You should own firearms that ammunition can …


The MOAB Keeps Growing, and Growing

Last Winter, when I first started writing about the Mother of All Bailouts (MOAB), I predicted that the cost of the bailout would grow inexorably. Sadly, I was all too right. In fact, the scope of the MOAB is now much larger than I had predicted, early in 2008. The latest tally thusfar is an almost incomprehensible $4.28 trillion US Dollars. But wait, it gets worse. In addition to bailing out bankers and insurance companies, more and more entities from outside the financial sector are lining up to the Federal trough. The TARP bailout set a dangerous precedent. There is …


Letter Re: UCLA’s Eye-Opening Colloquium on the Worldwide Financial and Economic Crisis

Hi Jim, I’m responding to Tuesday’s article Letter Re: UCLA’s Eye-Opening Colloquium on the Worldwide Financial and Economic Crisis in which the general cause of the crisis was ascribed to too much economic freedom. The following articles make the opposite case, that it was actually caused by government interference in the markets: The Government Did It The Myth that Laissez Faire Is Responsible for Our Financial Crisis Alan Greenspan vs. Ayn Rand and Freedom Stable Money is the Key to Recovery As pointed out in the article Stable Money is the Key to Recovery, “…some three-quarters of the massive derivatives …


Letter Re: UCLA’s Eye-Opening Colloquium on the Worldwide Financial and Economic Crisis

Hi, Yesterday [Friday. November 14, 2008] I attended the Marschak Colloquium on Mathematics in the Behavioral Sciences at UCLA {University of California, Los Angeles] . This thing is attended by lots of UCLA and USC [University of Southern California] economics professors, including many retired faculty members and other local luminaries. (Two seats to my right was author Alvin Toffler of “Future Shock” fame.) The main speakers presented for an hour, and then the whole group asked questions and discussed the topic. Here is the brief abstract that announced the talk: “The current worldwide financial and economic crisis is the greatest …


Letter Re: Seeking Advice on a Self Defense Handgun Purchase

Hi Jim, I do not have a handgun presently but want to get one. If you were only going to buy one handgun for self defense what would it be? God Bless, – Greg O. JWR Replies: Presently, I’d recommend getting either a Glock M21-SF .45 ACP or a Springfield Armory XD .45 ACP. Go for a full size model unless you plan to carry your pistol concealed extensively. If that is the case then get a Glock Model 30 (commonly called a “Mini Glock”) or an XD Compact .45. Given the currently frantic market for full capacity magazines in …


Letter Re: Should We Currently Emphasize Storage Food or Gun Purchases?

Hello Jim, I’ve finished reading your fine novel “Patriots” several weeks ago, and have passed it on to another like-minded individual. I’ve also been scouring your web site daily for the last several months, and gleaning extremely valuable information not only from you, but the many fine individuals who add excellent links to current events. I have forwarded your link to others, and have it saved as “required reading” daily. A brief background on our family; I had been one of the Y2K aficionados, and had lived on the Big Island for many years. If it were still just my …


Letter Re: Criminal Gangs in TEOTWAWKI — Understanding a Potential Threat

Sir, I have one minor correction to Ryan’s excellent article. This quote is seriously out of date: “Outlaw motorcycle gangs rule the distribution of meth.” I beg to differ: the Mexican cartels now rule the distribution of meth. In the 1980s, the biker gangs employed some of the Mexican gangs to produce meth to avoid the repeated law enforcement arrests of its very visible members. Then in the 1990s the Mexicanns expanded out of the biker’s control and the biker gangs bought Meth from the Mexicans to redistribute. Why? Less LEO (law enforcement officer) detection an much less expensive meth. …


Five Letters Re: Full Capacity Magazine Price Increases are Already Here

Jim, I wanted to contribute this the following to your ongoing discussion on high capacity magazines. Selling high capacity magazines is normally a small part of our business, but that changed last week. Between October 31 and today, we have sold more than I normally sell in a year. I had stocked up anticipating increased demand, but was nowhere near prepared for the huge surge in sales that we experienced. A normal order was 3 to 6 magazines, now it is 12 or more and we have had several customers buy in quantities of 100+. As a result, we are …


Letter Re: Market Observations From The Trader Blog

Mr. Rawles – Thank you for your recent mention of my site, TheTraderBlog.com. I am a former Lehman Brothers employee, I worked in New York City on the FX trading desk, but left in 2002, so I am glad to have missed all the recent excitement. I publish my blog in an effort to help me reason through my personal trading strategies, and also like to share my opinion about the markets and related events in general. I have not yet figured out how to make any money off of the site, so for now it is just a great …


Letter Re: The Depression of the 1930s–Why No Societal Collapse?

Hi Jim, I really enjoyed reading your novel “Patriots”. I’ve read a few other books also, like “Lucifer’s Hammer” and I have to admit that they spurred me to buy a 22 LR [rimfire rifle] as a starter. I’ve been doing a lot of thinking of our current situation in this country and it occurs to me that every generation has things going on that is very concerning. But in particular was thinking the Great Depression should have been a good example of things going to h*ll. Yet there was not this great meltdown where people needed to go to …


Letter Re: How to Handle Real Estate Holdings in a Economic Depression

Sir: If the global economy melts down and we experience a “greater depression” or worse. What is the best strategy for real estate that is already owned? I own a primary home and two rental properties in central Virginia but if the SHTF, I’m going to retreat along with numerous family members, to our farm about 25-30 miles from the nearest city. (It has hundreds of acres for growing, and has ample water, etc.) I don’t have substantial equity in any of my three houses and all mortgages 30 year fixed through Bank of America. Is it worth continuing to …


The Financial Crisis Will Soon Abate, But The Real Crisis Will Soon Begin, by Steve Saville

In an essay first published in 1969 and recently re-published, Murray Rothbard summarizes the causes and cures of economic depressions by drawing on the Business Cycle theory developed by the great Austrian economist Ludwig von Mises. Here’s an excerpt from this essay: “Mises, then, pinpoints the blame for the cycle on inflationary bank credit expansion propelled by the intervention of government and its central bank. What does Mises say should be done, say by government, once the depression arrives? What is the governmental role in the cure of depression? In the first place, government must cease inflating as soon as …


Four Letters Re: Currency Inflation Expectations for the US

James: The letter [from reader PNG] has severe mistakes and is fundamentally misleading – your readers deserve even more refutation before anyone is lulled into a false sense of security. To quote: “Let’s say the Treasury just invents another two trillion dollars by printing currency and forgiving loans. Let’s say they do that every year for the next five years. How much inflation would that create? The absolute maximum inflation rate from this example is about 20%, because there’s ten trillion dollars in circulation already.” These numbers are incredibly far off the mark. Actually M1 is the narrow definition of …