Category: Economics & Investing

Coping With Inflation–Some Strategies for Investing, Bartering, Dickering, and Survival

Statistics released by the Federal government claim that the current inflation rate is 4.3 percent. That is utter hogwash. Their statistics cunningly omit “volatile” food and energy prices. The statisticians admit that energy costs rose by more than 21% since last December. They also admit that Finished Goods rose 7.2%, and “Materials for Manufacturing” rose a whopping 42% , with a 8.7% jump in just the month of November. When commodities rise this quickly, it is apparent that something is seriously out of whack. Meanwhile, the buying power of the US Dollar is falling versus most other currencies. Not surprisingly, …


Two Letters Re: Storing Nails–Crucial for Preparedness

Jim: [You had mentioned in yesterday’s post: “…one of my unfulfilled quests in life has been to find a small hardware store that is going out of business and getting to ask the owner: “How much for all of your fasteners?” (Hopefully, at or below their scrap metal value.) That would be quite a coup.”] FYI, never be shy! Several years ago the local Scotty’s [hardware chain store] was going out of business; after many weeks of slowly reducing the prices.On the final weekend I approached the “soon to be unemployed” manager and offered to buy all the remaining large …


Letter Re: Investigating Your Bank’s Level of Derivatives Exposure

Dear James With all of the talk about derivatives blow-ups, I decided to do some research on my bank, as I am concerned about the cash that I have in my personal account, as well as the cash that I use for my business. I first found this Treasury Department PDF and down around page 22, it lists the top 25 banks in the U.S., their assets and their derivatives exposure. I found that my bank is on the top 25 and has a fairly high exposure to derivatives, but nothing like the top 5. At that point, I decided …


Letter Re: Advice in Investing in a Belt-Fed Semi-Auto 7.62mm NATO

Mr. Rawles: I am interested in diversifying out of the dollar and was thinking of buying a belt-fed semi auto [as a “tangible” investment.] (I already have the rest of my gear, guns, and food storage well squared away.) Since 7.62 [mm NATO military surplus ammunition] is less expensive than [commercially loaded] .308 [Winchester], can you recommend a belt fed 7.62 semiautomatic? Any that you would avoid? Thanks! – S. JWR Replies: I would recommend buying a semiauto-only Browning Model 1919A4, since they have legendary “bomb proof” robustness, great versatility in mounting, and broad chambering convertability. I recommend that you …


Preparedness While on Business Travel–What to Pack, by LP

If you’re like me, there are times when you have to leave almost all your preparedness stuff behind as you journey by air to strange, far-off places on behalf of your employer. No access to your well-stocked SUV. You are alone, and home is hundreds if not thousands of miles away. But disaster will not be consulting your personal travel itinerary before it strikes. How best should you prepare? Let’s first discuss the objective, as it determines the approach. For most of us, we leave family, friends, and a (more-or-less) well-stocked homestead behind. This means Your primary objective is to …


Letter Re: Electronic “Cash” in the Event of a Banking Emergency?

Jim, What if the banks were closed for a Bank Holiday by the President, for let’s say one week. Question: Could one still use their credit card? Or is the system intertwined? Keep up the great work you do and service you provide the world. – David V JWR Replies: In the event of a national banking crisis and bank “holiday”, I predict that all bank doors will be closed and that every form of electronic money will be inoperative (ATMs, debit cards, credit cards, et cetera.) You might be able to write checks at some local businesses, but don’t …


Off the Record Comments from a Saudi Prince: Possible Collapse of the US Dollar

A big red flag went up on Saturday, when a “must read” article was published on the web site of The Business (a British international business news magazine): Saudi minister warns of dollar collapse. I loved the bit about the inadvertently open microphone. There is something about “off the record” comments about a potential US Dollar collapse that is strangely reminiscent. (I just can’t quite place it…) Meanwhile, our friend Stephen in Iraq pointed out this article signaling trouble ahead: US inflation reaches 14-month high. The economic pendulum is definitely starting to swing more violently. I predict that things will …


Mass Inflation Ahead–Save Your Nickels!

I’ve often mused about how fun it would be to have a time machine. I would travel back to the early 1960s, and go on a pre-inflation shopping spree. In that era, most used cars were less than $800, and a new-in-the box Colt .45 Automatic sold for $60. In particular, it would be great to go back and get a huge pile of rolls of then-circulating US silver dimes, quarters, and half dollars at face value. (With silver presently around $15.50 per ounce, the US 90% silver (1964 and earlier) coinage is selling wholesale at 11 times face value–that …


Letter Re: Curious About “Curio and Relic” Firearms Laws in the US

Hi Jim, I read from time to time “C&R eligible.” Can you please post a quick note on the SurvivalBlog that explains what that is referring to, as it relates to firearms. Blessings, – Mark B. JWR Replies: I often write about the full exemption in the Federal law for pre-1899 guns, but I haven’t given much attention in the blog to Curio and Relic (C&R) guns. A Type 03 Federal Firearms License (FFL) is issued by the Bureau of Alcohol Tobacco and Firearms and Explosives (BATFE) . It allows individual C&R collectors to purchase across state lines some specifically …


The Demise of the US Dollar–The Handwriting is on the Wall

The major news outlets have finally started shouting about the collapsing value of the dollar and the bull market in precious metals. (Looking at the charts, $820 per ounce seems to be the new floor for spot gold.) Just as I predicted, it was a move by China that precipitated the latest drop in the dollar. Thanks, BTW, to the five readers that all sent that link. I should mention that several SurvivalBlog readers mentioned that article. Reader Mike the Blacksmith noted: “The remarks by Cheng on world currency status is the most important point in this article.” The currency …


The U.S. Economy: A Distinctly Chill Wind

Do you detect a change in the weather, this Fall? You probably noticed that on Friday (November 2nd) the spot price of gold spiked to close at $806 per ounce, and silver at $14.53. (Both were 28 year highs. Yup, I told you so.) You also probably saw this article: Fed pumps [another] $41 Billion into US financial system. It is now obvious that Helicopter Ben and his Federal Reserve Board of Governors are in full scale panic mode. I should also mention that the very next day after the announcement of this huge injection of liquidity, the New York …


Letter Re: The Falling Dollar–Sheltering Your Assets in Steel and Alloy Tangibles

Jim, I really appreciate your web site and your wisdom. I agree with your evaluation of the need or the wisdom in storing magazines. You recommend original factory or military surplus. My question is what would you advise as far as AK mags go? Any thought on the polymer mags would also be appreciated. Thanks, – Andy JWR Replies: For steel AK magazines, I recommend buying any of the magazines made in the former Soviet Bloc that have a full length standing metal rib on the back. Virtually all of those are quite robust and reliable, regardless of the country …


The Falling Dollar–Sheltering Your Assets in Steel and Alloy Tangibles

In a recent e-mail, SurvivalBlog reader Mike the Blacksmith mentioned two articles that confirm what I’ve been saying for several years–that the US Dollar is headed for further significant collapse in foreign exchange: Jim Rogers quits dollar after declaring US recession, and IMF chief warns dollar may suffer ‘abrupt fall’. The latter article is frightening. It is noteworthy that since the first month that SurvivalBlog went live (in August of Aught Five) I have been warning readers to minimize their exposure to dollar-denominated assets. Instead, invest in tangibles, tangibles, tangibles! Other than silver, and productive rural land that could be …


Letter Re: Gold is Going Up, But is Now a Good Time to Buy?

Jim, I am going to become a 10 Cent Challenge subscriber before the end of the month because the information provided in SurvivalBlog is invaluable and has forever changed my way of thinking! I have been a reader for about a half year and have seen the topic of gold come up several times. Gold is apparently at a 28 year high and the desire to get invested from my personal standpoint is high but my question is do you see gold leveling out or continuing its upward trend? The other part of the equation is I am young father …


The Game, by Oliver Velasquez

In the past 25 years interest rates have fallen from as high as 15% to as low as 1.25%. During this time our economy has gone through different cycles, everything from stagflation, recession, to historic bull markets, and real estate booms. Today, in my opinion, we are living one recession away from a massive depression which can be credited to the Federal Reserve’s monetary policy. Historically, it’s never been a good sign to have both gold prices and the stock market trade at such peak levels like we have today. During the past ten years we have gone through a …