Category: Current Events & Politics

Letter Re: The Handwriting is on the Wall for the Big Three Auto Makers

Mr. Rawles, Anyone who is paying attention would have seen the mess that America’s “Big Three” auto makers are in. A smart Peak Oil [market] player would have shorted them a while ago. But consider this little fun fact – As of this last Friday, the market capitalization of General Motors (GM) was just over $5 billion. That’s all. Toyota has about 25 times that. So are several other healthy auto makers and they all know that times are tough yet GM expects sales to pick up later this year? But consider that $5 billion. It’s cheap yet no one …


Letter Re: California’s House Prices Plummet to Surprising Depths

Hi Jim, We’ve been good about our refinancing. As the house appreciated, we took a little here and there on two re-fi[nancing]s, to pay off most of our credit debt, and to start a business. At this time a couple of years ago, the house was worth $440,000, conservatively. In January, $351,000. Just last night, using a very good evaluation tool called Zillow.com, we were surprised to find that in the last six months, the house’s value dropped [still further,] to just over $250,000. That was a shock. Almost [a] $190,000 [on-paper loss] in less than two years, in an …


Letter Re: The Five Minute Bank Run

Dear Mr. Rawles: I wanted to tell you a personal experience I just had at the bank that scares me to death. If you think a bank can last a few days during a bank run, then you will be very surprised by my story. I wanted to withdraw $10,000 from a JP Morgan Chase Bank branch in a local Houston [, Texas] suburb. Chase is the second largest bank in the US and Houston is the fourth largest city in the US. I went in and said: “Can I please have my money?” The teller disappeared for 10 minutes …


Letter Re: The US Tax Giveaway Economic Stimulus Charade

Mr. Rawles, On June 27, 2008 the following Associated Press headline was on Yahoo Finance: After-tax incomes and spending show big gains. “The millions of economic stimulus payments gave a massive jolt to household finanances (sic) in May, sending after-tax incomes up by the largest amount in 33 years.” Q: Does borrowing money from the next two generations, while saddling our grandkids with principal and interest repayment obligations to foreign countries really now count as “after tax income”? A: Not to regular SurvivalBlog readers. Regards, – Kevin A. JWR Replies: Those with the Big Government mindset would answer: “Oh, but …


Letter Re: Victory in the DC v. Heller US Supreme Court Decision–With Some Reservations

Hi Jim, I was just reading your very excellent SurvivalBlog [post on the Heller decision] this morning. A great site you have. Regarding Mr. Gura, don’t be too hard on him because he appeared to throw machine guns under the bus at oral argument. I believe that Gura made a tactical decision not to discuss machine guns because he knew that, for now, the machine gun issue was a loser of an argument, and would distract from a more important first step: getting the Second Amendment declared as an individual right. Now that the court has declared (as those of …


Letter Re: Observations on Gun Laws in Europe and Request for Gun Selection Advice

Dear Jim, It is almost a year since I [started to] read SurvivalBlog. It is a great thing. Thank you for it. I am doing my best to be ready for the moment WTSHTF. Here in Europe, as you know, we have a problem with the gun control, so the only way to have guns is for hunting purposes (for self defence is almost impossible), and after few difficult tests, that includes psychiatric and medical tests, some law knowledge about guns regulations, safety and laws, and of course, having a clean background (no prison). Of course, there is regulation even …


Letter Re: An Economic Observation on the Prices of Silver and Gasoline Versus Fiat Dollars

Jim, I hope all is well with you and yours! I am pleased to note that I have made faithful followers of your blog of many of my friends. The more the merrier! The blog has been an incredible source for enlightenment and inspiration. I now advise everyone that I can prove that since 1964 and based upon the 1964 monetary system, the gallon price of gas at the pumps and the relative price of consumer goods have not increased in cost or value. Only the Federal Reserve note has lost buying power. In my humble and simple observation, cost …


Letter Re: Huge Price Hikes by Dow Chemical are an Ominous Inflation Indicator

Jim, In the news today, Dow Chemical is announcing a 25% price increase, following a 20% increase three weeks ago. Since they produce the feedstock chemicals for almost every industry on earth, this should be a great indicator of what’s coming. – ZBM JWR Replies: Ay carumba! Dow produces a huge variety of chemicals and compounds that go into everything from fertilizers to plastics. This is an alarming indicator of consumer price increases in the near future. When paired with fuel price jumps, this becomes downright frightening for near-future food prices at the consumer level. At this point, precious metals …


Letter Re: Economic Impact of Increasing Gas Prices and Declining Real Estate Prices

Mr Rawles: I sent you a link awhile back about the old timer from Wall Street who is still working in the industry and lived through the first Depression – he was greatly worried about what was coming. I agreed with your assessment that he was wrong about staying in stocks. My own former husband is a Wall Streeter who has moved much of his money out of the country now. He manages part of my own retirement portfolio and has been saying that what’s coming is going to be horrific to bear. His grandparents arrived in the US at …


Tomorrow’s Headlines? — A Nationwide Banking Panic

Since September of 2007, I’ve been warning SurvivalBlog readers about the potential for bank failures and bank runs in the US, spawned by the unfolding global credit collapse. I am now raising my warning to multiple red flags. There are certainly some ominous signs. These include: New banking scrutiny–especially for investment banks. Plunging bank reserves. A few more bank failures this year than in a typical year. A record increase in “bank owned” (foreclosed) houses. New FDIC rules on assessing risks at major banks.To be ready for bank runs, the FDIC has even re-hired some former employees from its division …


Letter Re: Update on Storage Food Shortages

Dear SurvivalBlog Readers: As you may know Mountain House has curtailed all shipment of their freeze dried foods in cans throughout the U.S. until at least October of this year. I repeat, the supply from Mountain House has been cut and I fully believe that when their food in #10 cans is available again, it will be at much higher prices. We still have a large supply of Mountain House Freeze Dried foods in our warehouse. It appears that we have one of the largest remaining supplies in the country as some of our biggest competitors are referring their customers …


Letter Re: Numerous New Economic Crash Warnings

Hi Jim, Within the last couple of days I have noticed that multiple economic and financial institutions have started to issue global financial crash alerts. For instance: – Morgan Stanley warns of a ‘catastrophic event’. The point of maximum stress could occur in coming months if the European Central Bank (ECB) starts to raise rates and the Fed backs away from expected tightening. The rates differential “could trigger a ‘catastrophic’ event”. – The Global Europe Anticipation (LEAP/E2020) team is now convinced that this period will consist for the whole world in a major plunge into the heart of the phase …


Letter Re: Gasoline Prices in the UK–a Preview of Upcoming Prices in the US?

Mr Rawles, First, I will be taking the 10 Cent Challenge starting this week, as I get far more than 10-cents worth of information per day from this wonderful blog. Second, I saw this article on the BBC web site. Fuel £1.99 a litre as tanks dry That’s right, for stations that haven’t run dry yet (1970s America all over again?), gas is selling for the equivalent of $14.76 per US gallon. Time to start thinking about what the US would look like at $15 a gallon. Yours, – DLF


Letter Re: More About Recent Flooding in the US Midwest

Jim, I’m sending a follow-up to your link on the historic flooding in Cedar Rapids, Iowa. Typical issues: Roads closed or collapsed, bridges flooded or swept away, traffic jams for miles, power and gas outages, water shortages, businesses closed, forced evacuation of 20,000 people included the local jails and a hospital. Cleanup will take months, and there will be shortages of construction material. Heck, we had shortages of lumber and sheetrock in Iowa during the Florida and Louisiana hurricanes. And what has become typical – jurisdictional disputes. Local law enforcement has its own issues, but FEMA doesn’t play well with …


Two Letters Re: Some Observations on Recent Flooding in the US Midwest

James, I got this from a friend in Indiana: All is well at our house but the town is suffering. Here are a few comments for your edification. – Small rivers come up fast with 10 inches of rainfall. Unknown to me, but if I had delayed another 30 minutes in going home, I would not have been with my family where I was needed. – This was the first time other than snow events when I could not leave town. All roads underwater, including interstates and state highways. – My Chevy 4WD pickup will go through deeper water than …