Category: Current Events & Politics

Letter Re: What Are the Economic Collapse Indicators to Watch For?

Jim, Some of us may be stuck within the city limits until ‘the last possible moment’ before an event such as WTSHTF. Can you suggest a day-to-day procedure or strategy to now follow for monitoring specific and reliable news outlets or information sources in determining when our G.O.O.D. action plan should be initiated? . Obviously, many people such as myself, have all the ‘other’ recommended Rawles preparations in place but are still at a disadvantage from those that were able to set up their retreat ahead of time and to have evacuated from a city. It’s the best that I …


Letter Re: Gauging Bank and Thrift Safety

James, I wrote you a month or two ago regarding a post of yours that was concerned about failing banks. I commented that I thought the worries were overblown – there was no reason to think that FDIC wouldn’t pay off the claims, just as FSLIC paid off the claims in the 1980s. I still think that’s true, but I have had a personal cautionary experience that has moved me much closer to your way of thinking. I had a brokered Certificate of Deposit (CD) issued by IndyMac. (In case you post this, for readers unfamiliar with the term, “brokered” …


The MOAB Accelerates the Inevitable Destruction of the US Dollar

Back in March, I coined the acronym MOAB (for Mother Of All Bailouts), to describe the Federal government’s continuously-expanding response to the global credit collapse. My family has been getting great chuckles mentioning each time that commentators and legislators start using the term. These have included Michelle Malkin, Congressman Ron Paul, Senator Richard Shelby, and Joel Skousen. So now we are waiting for a pronouncement for Al Gore, that he invented both the term and the acronym. The government’s virtually uncontrolled bailout spree has now expanded to more than 1.5 trillion dollars, and there is no end in sight. At …


Even Chuck Schumer Thinks that We Might Be in Deep Schumer

A front page headline in The New York Times on Friday shouted: Congressional Leaders Stunned by Warnings. The article began: “It was a room full of people who rarely hold their tongues. But as the Fed chairman, Ben S. Bernanke, laid out the potentially devastating ramifications of the financial crisis before congressional leaders on Thursday night, there was a stunned silence at first.” Later in the piece, it mentions: “…the congressional leaders were told “that we’re literally maybe days away from a complete meltdown of our financial system, with all the implications here at home and globally.’” U.S. Senator Charles …


Letter Re: Comments on the 2008 Financial Collapse and the Mother of All Bailouts (MOAB)

Hi Jim, This [current economic news] is nauseating. Now, not only are we in the insurance business, but we the taxpayer are going to be forced to purchase all of the bad and recklessly created debt generated over the last eight years. We know it’s bad, it’s even been called “toxic debt”. We’re not going to be given a choice on whether or not we want to purchase it. It’s being purchased in our name and we have no say about it. I can think of no better definition of socialism. If this is not the end of the world …


Letter Re: Anticipating Another Federal Ban on Semi-Auto Rifles and Full Capacity Magazines

Hello Mr. Rawles, I am assuming that no matter who wins the presidency, we are probably looking at the next assault weapons ban in about a year (if TEOTWAWKI doesn’t happen first). I don’t recall exactly what the effect of the last ban was on pre-ban guns, but I assume the prices of pre-ban AR-15s rose dramatically? If that is the case, would it be wise to purchase several AR-15 lower receivers now, with the possibility of selling them at a profit after the ban is in place (since they will then be pre-ban)? The relatively low price of a …


Letter Re: Tropical Storm Ike’s Devastation Works its Way North to Ohio

Good Morning, Jim, And yes it is a good morning at that. I’m here in the suburbs of Ohio between Dayton and Cincinnati. Our power has returned. I read Larry in Cincinnati’s post this morning, and I know his thoughts and feelings all too well. Like him, we had the preparedness mind set already in place, and fared a bit better than some of our neighbors. I only caught the tail end of your interview on AM 700 WLW in Cincinnati in my truck as I was heading to work ( the company I work for is on a different …


Dear Mr. Fuld: It’s The End of the World As We Know It

The recent news headlines about the investment banking crisis have answered the question that I often get from readers: “Why do you spend so much time talking about economics?” In my estimation, an economic crisis is the most likely trigger for a societal collapse, in the short term. The Lehman Brothers debacle is just a microcosmic preview of the global credit collapse. It is also a good illustration of the derivatives risk that I’ve been warning about for many years. How many times do I have to say this? The entire credit system is broken and it will be a …


The Lehman Brothers Debacle Illustrates the Extent of the Global Credit Collapse

You probably saw yesterday’s headline in The Wall Street Journal: Lehman Races to Find a Buyer. Well, well. The once mighty Lehman Brothers Holdings firm had a market capitalization of $47 Billion last year. But when I last looked, it was down to a paltry $2.58 billion. The company is now definitely on the ropes. It is likely that the Mother of All Bailouts (MOAB) is going to grow even larger. There will probably be an announcement made this weekend of a “private” takeover of Lehman–possibly including an overseas “white knight”–but down in the fine print we will learn that …


Letter Re: A SurvivalBlog Reader Prepares for Hurricane Ike

Dear Mr. Editor: Just a quick note to tell you how people that read your blog are preparing for Ike. Thanks for all the great information. I live near Houston in the suburbs, about 60 miles north of Galveston. Most of the stores are open and have plenty of water, drinks, bread, tuna and other canned foods. The stores have done a much better job this time of keeping needed items in stock than they did when Katrina was headed this way a couple years ago. The gas is going fast, and many stations are closed. I filled both my …


Energy Dependence and U.S. Military Policy, by Edward C.

“Oil is the world’s most critical resource”, and “without it, nothing works in an industrialized civilization as currently configured”1.“The issue is not whether DoD will be able to obtain the oil it needs to provide for our national defense, because it will”, but “trends in global supply and consumption patterns” serve to further “complicate…the challenge of providing fuel to DoD’s far-flung operations as well as affecting the price DoD must pay for fuel”2. “Historically, no other energy source equals oil’s intrinsic qualities of extractability, transportability, versatility, and cost”3. The qualities that enabled oil to take over from coal as the …


Letter Re: Should I Get a Bigger Property and a Bigger Mortgage?

JWR, I currently live in a crowded subdivision in a moderately nice house that is worth $240,000. We owe approximately $120,000 on it, and have $120,000 in equity. Based on much of what I read here, we were looking for a house with some land, and recently found one for $370,000 (it’s only 2.5 acres, but that’s much more than we have now). If we buy it we will owe $370,000 -120,000 = $250,000). I currently make around $120,000 per year, in a job in the medical field that should not be too hard hit by financial crises. So what …


Letter Re: Substantially Higher Food Prices at Warehouse Stores

Hi Jim, Yesterday I made my monthly or thereabouts pilgrimage to Costco to buy bulk items for our pantry and other needs. I immediately noticed that prices had gone up on just about everything. The 40 pound bags of Kirkland brand dog food (re-labeled Iams brand) had gone up from $19.90 to $23.64 which is about a 16% increase in price. The 25 pound bags of Indian long grain rice went for $20.00 to $24.00 – a 20% increase and other items here and there had gone up a dollar or two or three. While Costco continues to be a …


Letter Re: Observations on Empty Store Shelves in Louisiana

Mr. Rawles, I am an over the road truck driver and happen to be in Louisiana today. I have been to several stores in the southern part of the state and took note of what was in short supply. The shelves in the camping section were empty, they were out of water, generators, gas cans, coolers and frozen dinners. The frozen dinner thing I didn’t get, I figured they’d be short on canned or boxed food. Just stuff I noticed and thought I’d share. God Bless and I’ve been praying for your wife.- Vincent from Portland JWR Replies: Part of …


Letter Re: The Approach of Tropical Storm Hanna Was a Wake-Up Call

Sir, I used to think of myself as “Mr. Preparedness.” I read the blogs and often went shopping for preparedness supplies. Then tropical storm Hanna came to the Carolina coast and I realized just how ill prepared I really was. I didn’t even have my medicines in order. Also, I had no reserve of cash in small bills ready to go. Nothing was packed. It took some time to get all my things together. Had this been a real emergency, I would have been in trouble. Sir, you mentioned in a previous blog the importance of having that bag already …