Category: Economics & Investing

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 …


Florida at the Precipice of Depression, by Mike Morgan, J.D., CRS, GRI

I was going to call this “Banks March Us Into Depression,” or maybe more fitting is . . . “Complete Collapse of US Banking System.” Folks, that is what we are looking at. I don’t see any way around it. What we’re seeing here in Florida, is your crystal ball. And what happens here, is coming to a town near you . . . soon. This past week I didn’t write anything, because what I am seeing unravel is disturbing to the point I had to question what I was seeing and hearing. So I decided to take as much …


Two Letters Re: Request for Investing Advice

Hello Jim, First off, thanks for an excellent book/resource in your novel “Patriots”. I read it in the last week and it has had a profound effect on me. I also felt the writing was quite good, being entertaining and educational at the same time. Thanks for it! After reading your book (and listening to my brother, who has been talking about TEOTWAWKI for some time now), I did finally do some things to prepare in the last week, but I wonder what the next step is for me. First off, I invested about $80 to make some shelving in …


Letter Re: Physical Gold Versus Electronic Gold

Mr Rawles, The letter from the gent who recommends investing in synthetic gold startled me. Prior to the Great Depression my family was very wealthy. My great-great grandfather, was an assemblyman from New York State who [had] moved to the backwoods of Pennsylvania and built what was at one time the largest tannery on the east coast. The family also owned a large hotel, at least two other tanneries, a general store and a gristmill. When his son took over the reins of the family wealth he invested the bulk of it in silver stock. When the stock market crashed …


Letter Re: Physical Gold Versus Electronic Gold

Dear Mr. Rawles: You are clearly (and presciently) on the record as recommending the purchase of precious metals, ahead of the current inflationary cycle. Congratulations on that excellent macro call. But I believe you also recommend holding the physical commodity rather than synthetic ownership through an exchange traded fund/note. This makes less sense to me. As an economic hedge against fiat currency deflation, synthetic gold has lower transaction costs since you don’t have to pay for the transport of the gold, the retail broker markup, or the non-gold coinage aspects of value that are embedded into Krugerrand, Maple Leaf, and …


Lady Liberty Liberty Has a Hollow Core

The best known symbol of the United States is the Statue of Liberty. It was a gift from the people of France, with a framework designed by Gustave Eiffel. (Yes, the same gent that designed the Eiffel Tower.) Eiffel’s Liberty statue armature design was clever, and made the statue an amazingly lightweight for a structure that towers 151 feet tall. Rather than a traditional solid masonry statue, Lady Liberty is built on a hollow framework to which copper sheets are attached. I have recently come to realize that the Statue of Liberty is a fitting symbol for the United States …


Letter Re: The Supply of Battle Rifle Parts Kits in the US is Drying Up

Jim: In a recent post, you wrote: I recommend HK91 clones because they are presently less expensive than M1As, and their spares are much less expensive. An M14 parts kit (everything but the receiver) is around $750, if you can find one. But you can buy a G3 part kit for under $250.” Please tell me where I can buy $250 G3 parts kits. They have all dried up. $400 to $500 if you can find one. I’m needing a couple. Thanks, – Craig W JWR Replies: The last gun show that I attended (late last year) had a table …


Choosing an HK91 Clone Versus the M1A for a Primary Battle Rifle

Hello Mr. Rawles. My Father bought me your novel “Patriots” and I read it and it really inspired me and woke me up to becoming more of a survivalist. I live in the country just about 50 miles out side of Chicago (pretty much the worst place to be if the SHTF, well even if it doesn’t, it still sucks, LOL), but never mind that we have other places to go, thank God. I have always been around guns. I have been shooting probably since I could walk. Anyway, I am wondering why in your book you chose to [show …


Triage In Financial Markets, by Darryl Robert Schoon

Global financial markets are in extreme triage following the credit contraction of August 2007. It is believed central bankers are trying to restore markets to help the economy. In truth, they are like life insurance companies fighting to keep a wealthy patient alive so the high premiums will continue to be paid and the large death payout will be postponed. It has been only nine months since credit markets unexpectedly froze in August 2007. The central bankers who were surprised by the summer 2007 credit contraction now hope the danger has passed. But they are about to be surprised again …


Louisiana Sales Tax Holiday for Hurricane Preparedness–May 24 & 25

Residents of the US state of Louisiana can purchase needed items free of sales tax as they prepare for the 2008 hurricane season. The inaugural 2008 Hurricane Preparedness Sales Tax Holiday takes place on Saturday, May 24 and Sunday, May 25. The holiday is an annual, statewide event created by the Louisiana Legislature to assist families with the important job of protecting their lives and property in the event of a serious storm. During the two-day holiday, tax-free purchases are allowed for the first $1,500 of the sales price on each of the following items: • Self-powered light sources, such …


Spotlight Falls on Silver’s “Poor Fundamentals” by Jason Hommel

An article by Pratima Desai that was circulated by the Reuters news service, included this: LONDON, April 28 (Reuters) – Investment money flooding into silver has overwhelmed poor fundamentals and helped it to outperform gold, but the tide could be turning for precious metals and the probability of large losses is rising. THE REAL TRUTH IS: Silver has outstanding fundamentals, and silver’s downside is minimal, and, in fact, it probably just bottomed, as I will show. Silver’s price falls in percentage terms are likely to dwarf those seen in gold, which some fund managers say has stronger supply/demand fundamentals. Again, …


Letter Re: Turning Your Trinkets Into Storage Food

Dear Mr. Rawles, As I was divesting of the useless flotsam one sees as a hindrance to true preparedness, I was inspired to list my trinkets on eBay. (Now, for all those who have a hatred for eBay [because of their anti-gun policies] , this is a separate issue.) I also have a PayPal account. That is another stumbling block to some. But for those of us who are still making the transition to becoming prepared citizens (from their former place in the herd of sheeple), this may be a very viable opportunity. Please hear me out! So, you sell …


Letter Re: Sources for Inexpensive FAL Clone Rifles

Sir, Do you know a place to get a cheap yet reliable FAL rifle? I am looking for one on a budget preferably under $400 or so. I would greatly appreciate help and i like your blog. Thanks, — Derek JWR Replies: Unfortunately, because the supply of parts sets has dried up, the price of US Code Section 922(r)-compliant FAL clones is starting to rise. The heyday of FAL clone building was a couple of years ago, when parts sets were cheap and plentiful. The prices then bottomed at about $500. Those days are gone! Here is some background on …