Category: Economics & Investing

Four Letters Re: What Will We Eat as the Oil Runs Out?, by Richard Heinberg

Jim: What scares me [in Heinberg’s article] is the use of words like “policy,” “regulations,” “controls,” “comprehensive plan,” etc. At the least, this is government control of the economy. At the worst, of our personal lives. (Population control.) He may have some technical points, but he is a bad sociologist. And a bad economist. A free economy may not be the most efficient, but it works very well when the social side is considered. There are all ready farmers of multi thousand acre places on the Great Plains, both US and Canada that are growing a few hundred acres of …


Stock Market Suckers, by Vox Day

Suckers! Many conservatives are aquiver with excitement that George Delano is daring to brave the third rail of American politics, the much-beloved welfare program set up by his philosophical predecessor, FDR. It is true, of course, that Social Security is nothing but a government-run Ponzi scheme, that there is no trust fund, that as an investment it is a complete rip-off, that it rewards white women at the expense of black men and that it is an outrageous violation of the Constitution of the United States of America. But this does not mean that the Bush administration’s plan to allow …


What Will We Eat as the Oil Runs Out? (Pt. 1), by Richard Heinberg

The first dilemma consists of the direct impacts on agriculture of higher oil prices: increased costs for tractor fuel, agricultural chemicals, and the transport of farm inputs and outputs. The second is an indirect consequence of high oil prices – the increased demand for biofuels, which is resulting in farmland being turned from food production to fuel production, thus making food more costly. The third dilemma consists of the impacts of climate change and extreme weather events caused by fuel-based greenhouse gas emissions. Climate change is the greatest environmental crisis of our time; however, fossil fuel depletion complicates the situation …


Letter Re: How to Store All Those Saved Nickels

Mr. Rawles: I diligently read your “nickels”article and archived follow-ups, but nowhere do you mention which size ammo can it is that cubes rolled nickels for storage most efficiently? I have cleaned out my children’s bank accounts slowly over the last few weeks and am walking into random banks and grocery stores converting the cash into rolled nickels. ”Havin’ a yard sale, don’t ya know.”.Wink. It keeps the Stepford bank weenies from asking unnecessary questions. – Laura C.; Hiding in Plain Sight, Somewhere Deep In The People’s Republic of Northern Virginia JWR Replies: In my experience, the USGI .30 caliber …


Letter Re: Preparing for Pole Shift?

Mr. Rawles, I have been trying to find out more about the consequences of a polar shift, particularly the effects it will have on the Great Lakes Region. I know that no one really knows what will happen, but everything I’ve seen points to something really really bad. If possible could you post what knowledge you may have on the subject on SurvivalBlog? Thank you, – Scott from Michigan JWR Replies: Rapid pole shift is a little more than an unsupported theory, touted mainly by the Art Bell crowd. In my opinion it should be one of the least of …


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 …