Category: Economics & Investing

Arm Thyself, by William Buppert

President Bush has embarked on the final phase of Pax Americana and is ushering in an advanced imperial stage that will endanger every living American. The coming election will assure us that every American will have his Second Amendment rights infringed or predated upon in some fashion no matter which party succeeds (is there a difference except the spelling?). Perennial readers of this site are better versed than most in the predatory nature of the state and its ability to target and vilify those it wishes to eliminate eventually whether through political neutralization such as Trent Lott or lethal means …


Letter Re: Are Simultaneous Inflation and Deflation Possible?

Hi Jim, Your excellent post about the possibility of simultaneous inflation and deflation got my head to spinning about ways to protect ourselves from a seemingly near-certain banking crisis. Such a scenario would certainly be a major headache for everyone, no matter how large their bank accounts, but it would be a huge problem for those of us who are in business for ourselves and need a constant cash flow through the banking system to pay payroll, expenses, taxes, etc. Therefore, I wondered if you and/or any of your readers had any suggestions for preparing for banking problems ahead of …


Letter Re: The EconomicIndicators.gov Web Site

James, It looks like the U.S. Department of Commerce Economic Indicators web site now will continue to operate and they are going to enhance the site to boot. Here is the recently updated notice from their web site: The U.S. Department of Commerce’s Economics and Statistics Administration (ESA) has decided to continue the economicindicators.gov web site. Featuring the economic releases from ESA’s Census Bureau and Bureau of Economic Analysis (BEA), the site was started by this Administration in 2002 to give greater awareness to these economic statistics. ESA initially planned to discontinue the service due to cost concerns but given …


Letter Re: Lessons from Brazil, Circa the Late 1990s

James, I was chatting with a friend of mine who lives in Sao Paulo, Brazil and we got to talking about their economy. What really caught my attention was what life was like about the time they went their economic collapse, I think he said around 1998. Brazil had several years of increasing inflation and finally reached 50% per month! At that rate people were paid weekly instead of monthly and everyone would convert paychecks to hard goods and consumables. I told him there would be riots in the streets and marches on the White House if we ever had …


Two Letters Re: Are Simultaneous Inflation and Deflation Possible?

Jim, We are clearly experiencing deflation, as bad debt and derivatives unwind. At the same time there appears to be massive inflation by the Fed, or else where did the three Trillion for Iraq come from? The only “X factor” now is the money multiplier. Reserve requirements are now [effectively] zero. A good video (Flash required). But now eliminate the reserve component, [and its] Zimbabwe dollars ahoy. Here is some scary stuff, directly from the Fed. And here is an explanation similar to what I had wanted to write about the “Its the Economy Stupid” with Clinton and Greenspan – …


Are Simultaneous Inflation and Deflation Possible?

I often have friends and clients ask me how I can talk about inflation and deflation in the same breath. They’ve asked: “But I thought that inflation and deflation were contradictory. How do you think that we could experience both inflation and deflation at the same time?” Let me explain, starting with a bit of background: The fractional reserve banking system, based on usury, creates money. Here is a simplified example: Each time you deposit a $1,000 at your local bank, the bank then lends nearly all of that money out to someone else, charging interest. The bank holds just …


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 …


Letter Re: Advice on a Whole Life Insurance Policy and Firearms

Jim, I’m a newbie to your site and I love it! Read it every morning instead of the newspaper. I’m a single female horse rancher living in Alabama (not originally from Alabama). I attend a home church and have been preparing for our future events for several years before reading your blog. After reading the blog I realize how much farther I have to go. Especially in the home defense area. I own two .22 rimfires and a BB gun. LOL! Thank you so much for all the time and information your providing us. I’ve referred many of like mind …


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, …


Selecting a Rifle for a Budget-Constrained Prepper

Dear JWR, I have first taken the time to read through your previous posts on Main Battle Rifle (MBR) recommendations before asking this question, but have not found what I am looking for. I am sure you receive an over abundance of firearms questions but any help would be greatly appreciated. Due to financial restraints I am the weak link in my group so far in preparedness. I have chosen to spread what resources I do have at my disposal evenly rather than focus only on firearms as too many seem to do. I feel a need to escalate all …


Letter Re: Mining Claims as Potential Retreat Properties

Sir, I am so happy to have stumbled onto your site today. I have not been on the internet in a very long time (1997 or so). I have been working for a number of mineral exploration/mining companies south of our border on and off since 1998. I will no longer travel outside of the U.S. (unless I’m reactivated by the Army) for work or pleasure. I am going to be 40 this month and I don’t feel like getting shot at any more, at least not for money. I am a former Army Combat Engineer, Electronic Engineer, small business …


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 …


Finding Your Dream Retreat: It is Time to Watch the Foreclosure Listings

I often get e-mails from readers, complaining that the retreat properties that they see listed are too expensive. Typically is something like: “I found a couple of good places, but they are beyond my reach.” Here is one possible solution: Buy on the other guy’s weakness. There are lots of foreclosures now on the market, and the foreclosure rate is expected to increase as the real estate bubble continues to deflate, and as the US economy slides into recession. (In my estimation, here is the equation for the next four years: Recession equals lay-offs, and layoffs equals missed house payments, …


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 …