Category: Current Events & Politics

Letter Re: Building a Kalashnikov at Home

Dear Jim, As you know, it’s legal in America to build your own standard firearm for personal use [by manufacturing your own receiver.] One of the best ways to get a discreet, legal, off-paper SHTF rifle is an imported de-milled Kalashnikov (AK) kit, with a new, home-built receiver. Take a look at this web site. His heat treating and machine and tool instructions are accurate. This is the best site I’ve seen on the subject. I was able to tear down a Romanian kit and assemble a working AK in about 8 hours. Beginners will likely need a couple of …


Letter Re: Drastic Changes in the Global Derivatives Market–Be Ready for the Mother of All Bailouts

Jim, Scroll down this article to the link to the Quarterly Derivatives Fact Sheet. It shows Citi[Bank] exposed to $3 trillion and J.P. Morgan at $7.8 trillion [in OTC derivatives.] Continue to the bottom of the piece for “Intelligence Czar Can Waive SEC Rules.” It looks like the Plunge Protection Team is operating in overdrive. Eisenhower warned of “The military-industrial complex”. What about the corporate-government complex? This looks like something Il Duce would have been proud of. Best wishes for our free enterprise system, – William JWR Replies: I’m glad to see that some readers took the time to look …


The Credit Collapse–The World’s Bankers Revert to Saying “No”

A recent news article titled Dresdner Rescues $19 Billion SIV, Follows Citigroup illustrates the severity of the global liquidity collapse. Note that the article mentions that the K2 SIV had no “direct exposure” to securities backed by subprime or midprime debt. But yet the fund failed dramatically. This adds credence to my assertion that the world’s entire credit market is essentially broken, and that despite frantic attempts by the central banks to inject liquidity (BTW, another $25 billion was just injected the Fed on Thursday), most of the major financial institutions are starting to crumble. In the very near future, …


Identity Theft–The Jury Duty Scam

The following is one of those items that widely gets circulated via e-mail, but this one is legitimate and I think that warrants posting to the blog: “Be prepared should you get this call. Most of us take those summonses for jury duty seriously, but enough people skip out on their civic duty, that a new and ominous kind of fraud has surfaced. The caller claims to be a jury coordinator. If you protest that you never received a summons for jury duty, the scammer asks you for your Social Security number and date of birth so he or she …


Guest Editorial: The Great Bust of ’08, by Mike Whitney

On January 14, 2008 the FDIC web site began posting the rules for reimbursing depositors in the event of a bank failure. The Federal Deposit Insurance Corporation (FDIC) is required to “determine the total insured amount for each depositor…..as of the day of the failure” and return their money as quickly as possible. The agency is “modernizing its current business processes and procedures for determining deposit insurance coverage in the event of a failure of one of the largest insured depository institutions.” The implication is clear. The FDIC has begun the “death watch” on the many banks which are currently …


Letter Re: SurvivalBlog Has the Edge in Reporting Some News Stories

Dear Jim, I’ve been following your web-site for a while now and am amazed how you and your members chime in with very news worthy items sometimes weeks before the mainstream media starts covering them. One latest point would be the CountryWide Equity Line suspension finally made our local evening news last night.[It was mentioned in SurvivalBlog on February 5th.] I was stunned to read today in The Wall Street Journal that coal prices, which once were steadily priced in the $20 per metric ton range began trading in the $40 to $60 range from mid-2003 to mid- 2007, then …


Letter Re: The More Naive Peakniks Need to Learn to Exercise OPSEC

Dear Jim: I found an interesting article about local Peak Oil preppers. It illustrates to a “T” the naivete of some of the Peak Oil crowd you have mentioned previously. In the article (“Oil crisis ahead? ‘Peakniks’ build for future”) there is a good balanced coverage of the problem. Featured is a local architectural engineer who is building a sustainable home called “FoodWaterShelter”. His full name, the street he is building on, his current neighborhood, his wife’s occupation, etc., etc., are all put out for public consumption. Heck, he is even in a photo. It took under a minute to …


Letter Re: Keeping a Low Profile is Crucial for Preparedness

James, To amplify on the excellent recent letter from SoCal titled “Keeping a Low Profile is Crucial for Preparedness”, I have some suggestions that all of us SurvivalBlog readers should implement to keep a low profile in our online activities. Anonymizer and Comprehensive Risk Solutions (both mentioned in the letter) are great ideas. They are cheap insurance. I can also recommend a few other measures, to wit: 1.) Use the Scroogle Scraper for web searches. This allows you to use Google through an intermediary site. That way Google cannot create a profile on your searches. On background: Google is notorious …


Letter Re: Comment on the Planned U.S. “Economic Stimulus” Tax Rebate

Jim, Not directly related to survival but more aligned with money management, please note that the Bush administration’s tax rebate is in fact an advance on 2008’s tax refund, and most or all of it will be deducted from taxpayers’ refund within a year. So if one spends it, plan to be short that amount next year. Be sure to thank most of your current crop of presidential candidates for supporting this fraud. – Bruce F.


Peering Over the Precipice: The Future of America’s Credit-Driven Bubble Economy

Here in the States, the newspaper headlines are full of bad economic news: “Credit Collapse”, “Housing Market Tailspin”, “Credit Rating Agency Scandal”, and “Three Trillion Dollar Federal Budget”. Most recently, the Federal Reserve (our central bank, operated by a private banking cartel) made a panic move, cutting interest rates in two jumps in just eight days, a whopping 125 basis points (1.25%). A drop that great, and that fast, was unprecedented. This maneuvering did little to calm the markets. If anything, the Fed’s actions confirmed the suspicion that the credit market is essentially broken and our economy is headed for …


Letter Re: The Recent Blizzard on I-90 in Wisconsin

JWR, I read the link that was submitted by Craig in Odds ‘n Sods. The Channel 3000 story couldn’t be farther from the truth. As a local first responder, I can attest that we are getting the short end of the stick. The State Patrol didn’t even acknowledge there was any problem on the interstate until hours after our crews were already on scene. They didn’t even know that Dane County had set up an incident command headquarters at the Highway 51 interchange. The first semi trucks started losing traction as early as 10 a.m.that day. Near blizzard conditions had …


Letter Re: Consumer Price Inflation is Upon Us

Dear JWR, I thought you’d like to pass this on if people want to save some of their hard earnings. Now is the last call to purchase before the commodity price increases. Shipping cost increases are to hit us again on February 19th. Here in North Carolina, we’re seeing an average of 20% increases in prices of staple shelf items like flour, corn milled products, honey, milk, eggs and canned goods within the last two weeks in the grocery stores. One bell pepper now costs a dollar. Other produce is following the same increases. Products made of plastics, paper and …


Letter Re: Keeping a Low Profile is Crucial for Preparedness

Jim, My missus and I have been into “prepping” for about 15 years. Our house has a basement and it is practically wall-to-wall and floor-to-ceiling with shelves–with just narrow aisles in between. The shelves are chockablock with storage food (all labeled and organized “FIFO“-style), medical supplies, assorted “field” type gear, tools, barter/charity stuff, ammo cans, propane cylinders (that fit our camp stove and camping lantern), reels of field phone wire, paper products, and so forth. Following the example of Mr. Whiskey (from your “Profiles“) we have recently built up 27 sets of designated “charity duffles”, each packed in a cheap …


Letter Re: A Federal Reserve Balance Sheet Disaster

Dear Jim, I just read on a[nother] blog about an imminent Federal Reserve disaster. There’s no [mainstream] news coverage on it yet so this qualifies as a serious heads up. Note the second numeric column. $40 Billion, has been since 1913, by law. Then notice it suddenly drops to $198 million and then two days ago the report lists the banks as minus $8.7 Billion, something which has never happened before. How bad is it? Think Weimar Republic. The Fed can no longer stop inflation because the banks can’t secure new money with debt. People aren’t buying debt anymore. Ergo, …


Letter Re: Countrywide Turns Off the Home Equity Lines of Credit Tap

James, I just received an email from my Countrywide Account Executive that they are suspending further draws against Home Equity lines [of credit]. They have reportedly started mailing suspension letters last week to 122,000 borrowers. Who knows how many more could get those based on the markets and Countrywide’s present situation. If you know someone who has [a home equity line of credit] and is going to need the funds, they might want to draw out the money right away and put it somewhere safe. A lot of people use home equity lines as emergency funds. – MB in Boise …