Category: Economics & Investing

Letter Re: Health Saving Accounts in the US–Buying Retreat Medical Supplies with Pre-Tax Dollars

Hi Jim – Thanks for your blog. It is well worth the [voluntary] 10 cents a day. Just a quick tip on saving money. Many employers offer flexible spending [“Health Savings”] accounts [(HSAs)] that are funded with pre-tax money. These accounts are usually billed as letting the employee pay for office co-pays, prescription co-pays, etc. tax free. But depending on the program, many other things qualify for purchases through the account. For example, my employer’s program allows most over-the-counter [medical] products. Things like bandages, creams, contact lens solution, foot care products and more are all valid purchases. I’ve been able …


Letter Re: Some Thoughts on Precious Metals Purchasing

Mr. Rawles, Not long ago you mentioned the price of precious metals had fallen. Today the market ended with spot precious metals taking a sharp dive. If any reader does not have at least some silver or gold for when the economy really drops off, now is definitely the time to get them. Kitco is one source. I use the Northwest Territorial Mint for large purchases. For smaller buys, I have used Mint Products, but they are more for the collector, and not bullion speculator. I have been able to amass a large sum of bullion, in the forms of …


Connecting the Dots on Our Fragile Economy, by Craig R. Smith

Recent events in the financial markets have renewed concerns that should be considered by any American who has worked, paid taxes, invested and saved for the future. It is no secret that America is swimming in debt. Currently the U.S national debt is $9.6 trillion. That is $47,000 for every adult or $94,000 for couples. One can only imagine the future burden that will put on taxpayers as the politicians continue to print money to pay off everything from health care to foreclosed mortgages. No level of taxation will support this kind of unbridled spending. We are now spending money …


Letter Re: Buying Storage Food and Precious Metals on a Budget

Jim, Thanks so much for SurvivalBlog. I’ve been lurking there for around six months now, ever since I started to realize the value of being prepared. It’s a daily stop for me, because I know I’ll learn something new nearly every day. I read with interest some of the recent writings about preparedness on a budget and investing in metals. I’ve combined the two. I, like many people, don’t have a lot of money to spend on preparedness (good thing, otherwise I might be a mall ninja). But at the same time, I want to prepare for everything at once. …


Letter Re: Of Bulls and Bears–Some History and a Glimpse at the Future

Dear Mr. Rawles, Thanks for the great blog, and your “Patriots” novel. Reading your site has become a daily routine for me. One thing that I am finding amusing in today’s investment market is this mythical line in the sand of when we are officially in a Bear market. At present the market seems to be fighting to stay just above this line and almost daily some market pundit states how one average or another has “officially’ entered an intraday Bear Market. Few people know, especially those in the investment market, the origins of the terms Bulls and Bears. In …



Three Letters Re: The Potential Perils of Bank Safe Deposit Boxes

Hi James – Nice letter from D.C. today, but for cryin’ out load Jim, please advise him to get his precious metals out of a bank’s safety deposit box. He seems to be able to afford a decent wall safe and the few bucks it might cost to install and camouflage it. When banks fail, they close the safety deposit boxes too – at least for a while. Not a great strategy to be cut off from your contingency funding right when you need it most. Too, get sideways with the IRS, and you will go to bank to see …


Letter Re: Physical Gold Versus Synthetic Gold, a View Redux

Dear Mr. Rawles: You don’t seem to be the type of guy who enjoys saying “I told you so” when you are proven to be right, but I thought I’d at least give you that opportunity. Back in May, I wrote to you singing the praises of synthetic gold ownership via Exchange Traded Funds (ETFs), and opined that “physical gold combines the worst of all worlds.” I’ve since started building my long position in gold (and silver), and I surprised myself by deciding quite early on to hold physical metals rather than to express my long position synthetically. This was …


Section 13(3), Rule 1830, Rule 308, and Naivete

The news headlines have been packed with economic Gloom and Doom, in recent weeks. To many observers, things seem to be spinning out of control–with collapsing credit markets, massive bailouts, emergency cash infusions, and taxpayer “stimulus” checks descending like Manna from Heaven. Given all this news, it is timely to discuss three rules: Section 13(3), Rule 1830, and Rule 308. Section 13(3) Section 13(3) of the Federal Reserve Act (of 1932) empowers the Federal Reserve banking cartel the power to lend to any corporation or to any individual using any collateral. The only proviso is that the Fed must declare …


Letter Re: Converting Gas Engine Vehicles to Propane

James; I haven’t seen much discussion to date in SurvivalBlog on Propane-burning vehicles as a retreat / bug out / EMP-proof vehicle. From what I understand, Propane combusting vehicles are not as popular in the USA as they have been in Canada, not to say we have a large amount of them running on streets, however, they are here and they are available. I’m looking at a EMP proof vehicle right now which happens to be a 1985 Chevy, 4×4, 1/2-Ton which has been converted to propane. Are their any issues with this that you may or may not be …


Letter Re: Opening a Non-Dollar Denominated Offshore Bank Account

Mr. Rawles, My wife and I have a Certificate of Deposit (CD) at 5.25% of $425,000 that will be maturing in December. She is all fired-up to travel to Canada in September, and with an interest-only withdrawal using $20, 000 to open bank account using converted US Dollars [(USDs) to another currency] as a hedge against the falling value of the USD. I have a bad feeling about this. From reading your site for several months, I suspect that you would suggest buying tangibles but, I fear that my wife will not agree to spending that kind of money on …


Four Letters Re: Questions from A Not-Quite Convinced Reader

Jim, I was intrigued by Robert C.’s recent letter which questions why we should prepare. I think he has a great question there, and one which deserves further discussion. I put together a personal ‘Top Five’ I’d like to share: Top Five Reasons To Be Preparedness Oriented: 5) It’s simply a natural extension of growing up — understanding and fulfilling our responsibilities. As babies we have all of our basic needs provided for us by our parents. As we mature, we all begin to take some responsibility for our own needs by doing things like getting an education; learning how …


Finding Your Land Rover in the Wild Kingdom of Banking

I grew up in the1960s glued to the television, like most other suburban kids. One of the shows that I enjoyed watching was Wild Kingdom, sponsored by Mutual of Omaha. The wise old narrator, Marlin Perkins, went way out in the hinterboonies of South America and Africa to film his documentaries. But I noticed that he was almost always a detached observer. It was usually his young, muscular assistants that were put in harm’s way, but not Perkins himself, who was safe and sound. He often made comments such as: “‘I’ll watch from the safety of the Land Rover, while …


Letter Re: Australian Bank Move Exposes the Magnitude of the Global Credit Collapse

James, This afternoon, The National Australia Bank (biggest in Australia, by assets) let the cat out of the bag: They have decided to just fess up and mark down every US mortgage CDO, SIV, and so forth in their portfolio by 90%. What that means is they are coming flat out and saying that all this re-bundled, repackaged, looks like a bond but it ain’t, US real estate paper that was being carried “Off Balance Sheet” and gumming up the works in banks around the world is worthless and they are making it official. (The loans that they represent will …


Letter Re: Advice for a Concerned Investor

Greetings, Jim, I looked at your research list under “Investing”. I have read much of it, and it doesn’t help me in my immediate concern. The sites on this list are good either for big-time or experienced investors, or they deal with specifics such as buying gold. Where can I get overall, what-to-do-immediately-today, type of advice for the small guy. Say someone has one or two small businesses with maybe $20,000 in checking and another $2,000 in Savings (all in a bank). What to do? Where to keep the money? Is offshore a possibility? Recommended? Anyplace where I can still …