Two Recent Incidents Illustrate that the U.S. Treasury Wants to Have it Both Ways With “Legal Tender”

Consider the case of a lad that tried using some $1 US Mint Presidential series proof coins as spending money at a restaurant. And now consider the hung jury in the tax evasion trial of a building contractor that paid his employees in US Eagle one ounce (“$50”) gold coins, at their face value. So if I understand these stories correctly, the U.S. Treasury wants us to accept their “legal tender” coins at face value, when the face value is more than the metal value of a coin, but they’d happily see us thrown in jail when when use a …




Letter Re: A Political Solution to America’s Pending Economic Catastrophe

Mr. Rawles: I recently read your novel “Patriots: Surviving the Coming Collapse”. I actually had to read it twice. (The first time for enjoyment, and the second time to take down notes.) With all of the recent news about the collapse of the credit market, monetizing of the National Debt and out of control Federal spending (which all sound frighteningly close to the first chapter of “Patriots”), I can only wonder how much longer America can hang in there before we suffer a total economic collapse. I can only see one possible hope: a return to a fiscally-sound constitutional government.And …







U.S. Foreclosure Numbers are Up–Some Retreat Property Possibilities?

There has been a lot of news in recent weeks about real estate foreclosures in the US. Foreclosure.com (one of SurvivalBlog’s Affiliate advertisers) just published the following US residential real estate foreclosure statistics: National Highlights: * Foreclosure activity increased 36 percent from July * Foreclosure activity increased 115 percent from August 2006 * REO (“Real Estate Owned”)s increased 59% month over month, the biggest increase of any of the three foreclosure categories (Default, Auction, REO) State and Metropolitan Statistical Area (MSA) Highlights: * Nevada, California and Florida posted the top three state foreclosure rates * The states with the most …




Hedge Funds–A Disaster Story that Could Unfold in Quarterly Episodes

One of the consequences of the collapse of the credit bubble and the subprime lending fiasco in particular is with hedge funds. There is a substantial risk of uncontrollable instability in hedge funds that could potentially be disastrous for investors. This instability will likely be seen in waves of bad news that will come roughly once a quarter. First, let me provide a bit of background: 1.) Most hedge funds have rules that allow only quarterly redemptions (“cashing out”) by by their investors. (A few hedge funds even have only one annual redemption “window.”) Typically, the redemption requests must be …




Letter Re: A Security Contractor’s Convoy Experience in Iraq

Dear Jim, A friend of mine who is a contractor sent this. It’s been posted elsewhere. Foul language warning. – Michael Z. Williamson Info from Iraq From Someone Who is Doing the “Run and Gun“ Yesterday a friend of mine who runs a small security company here in Iraq emailed me. He is standing up a protection detail and wanted my opinion on tactics and equipment running the roads of Iraq; Tactics, SOPs, hard car or soft? I have been giving it some thought and here is where I am at. I am willing to speculate I’m as well traveled …




Letter Re: Estimate on the Likelihood of an Economic Depression or Full-Scale Collapse?

Jim, What a lot of folks don’t think about is that during the last depression, almost 80% of the population was still connected to a family farm. They also knew how to can meats and vegetables and had all of the equipment to do so. It was a way of life for them. Today less than 1% is connected to a family/small farm. That is daunting. Even if some of the population knows how to can and has a small garden, How many of them have 500-600 jars, lids and rings? Got lots of Salt, a working smokehouse that doesn’t …




Letter Re: Estimate on the Likelihood of an Economic Depression or Full-Scale Collapse?

Jim, I know you get a lot of mail so I’ll be brief. I highly value your information and input on the current economy. I also have read your book “Patriots”, and your current assessment of our economy’s future terrifies me. What are the probable chances of this turning into a worse case scale as seen in your novel? Even if it is not worse case, I have no idea what a Moderate case would look like. Your wisdom would be greatly appreciated. Thank You.- William JWR Replies: In the context of America’s current economic situation (namely, the implosion of …




The Fed’s Monetization Madness: A Word of Warning

I’m sure that most of you remember back in the first week of August when CNBC market analyst Jim Cramer was screaming hysterically: “Open the discount window!” Well, it seems that Bernanke and Company have done exactly what he asked. As of the past week, commercial banks are now taking $2.7 billion in loans per day from the Federal Reserve discount window. With just this lending from the discount window, the increase in the U.S. money supply has jumped to an annualized rate of more than 50%! I’ve said this before: The biggest red flag imaginable for pending economic catastrophe …




Letter Re: Surviving Major Changes in the Political Landscape

Jim, I’m a believer in being prepared for the worst. However, how do I (we) survive 4+ years of an extreme left wing political take over of our system? Right now it looks like Hillary or Obama will win the Presidential elections in ’08. With either of those two in and a left wing house and senate, I have to believe that we’re doomed. You have to know that firearms will probably be banned similar to Canada, Australia, and Great Britain. Are you going to give up your means of defense? When times get tough and food gets scarce, the …




Weekly Survival Real Estate Market Update

The Disappearing “Jumbo” Creates a Window of Opportunity for Some Retreat Buyers For many years the “Jumbo” mortgage has been the means by which middle class buyers have purchased A.) Large homes, B.) Homes on large acreages, or C.) Homes in desirable suburbs. With the recent credit market crisis, the availability of Jumbo loans has declined precipitously. This has had a number of immediate effects. First, it has been an impetus for owners of houses that had been listed between $417,000 and $450,000 to lower their asking prices to $416,000 or less. Secondly, with a few exceptions, it has effectively …




Letter Re: Honey Prices Escalating, Just as Predicted

Jim: Saw the post regarding imported honey. Heard the same thing from my small time honey supplier. For west coast Costco’s, Silverbow honey is pure and made from US and Canadian honey. Verified this with the folks at Silverbow, based in Moses Lake, Washington state. For the record, I do my best to support local businesses and suppliers in Washington state and the Pacific Northwest, followed (naturally!) by SurvivalBlog [paid advertisers and affiliate] advertisers. Regards, – MP near Seattle




Two Letters Re: Projecting Some Possible Outcomes for The Panic of 2007

Jim, Very, very well done post, “Possible Outcomes for the Panic of 2007”. I would say you nailed it as good as can be done. However you will not be invited to be a guest on CNBC. – DAV Jim: Don’t ignore the compounding effects of a) an energy shock from peak oil, a major gulf hurricane, or geopolitical conflicts, b) natural disasters, particularly major 8.0+ earthquakes on the West Coast or the New Madrid fault, or c) wars and terror attacks driven by causes other than angry debt collectors (e.g. Al Qaeda, false flag attacks). All of these could …




Letter Re: Recent Floods in the UK and the Impact on Our Preparations

Further to my recent post about the recent flooding In the UK, things in the immediate area are pretty well back to normal now, aside from some continuing disruption to the road network due to land-slips, undermining and in some cases, bridges across water courses being washed away. Here, we got off very lightly, compared to some. No loss of life, no injuries, very little property damage. There are many families, however, who will be counting the cost of this incident for a long time, both in terms of loss of loved ones and of property and livelihood. One’s heart …




A Full Scale U.S. Dollar Panic Before November?

The news wires were abuzz last week about the global credit squeeze. Bankers are unwilling to make loans when they can’t calculate risk. What risk? Here is a big one: Many of their clients have derivatives exposure, which means that lenders can no longer calculate their credit worthiness. In the banking world, the standard “safe” answer to any loan question in the absence of data is almost universally no. I surmise that if this situation gets any worse, governments may step in and make loan guarantees. (Meaning that the taxpayers would shoulder the risk instead of the bankers.) That may …