Category: Economics & Investing

The Fed’s Monetization Madness: A Word of Warning

I’m sure that most of you remember back in the first week of August when CNBC market analyst Jim Cramer was screaming hysterically: “Open the discount window!” Well, it seems that Bernanke and Company have done exactly what he asked. As of the past week, commercial banks are now taking $2.7 billion in loans per day from the Federal Reserve discount window. With just this lending from the discount window, the increase in the U.S. money supply has jumped to an annualized rate of more than 50%! I’ve said this before: The biggest red flag imaginable for pending economic catastrophe …


Two Letters Re: Bank Runs — Implications for Prepared Families

Jim, Re the bank runs in the UK and warning about similar actions in the US: I don’t deal much with banks so I have a rather silly question to ask about this situation. If there is a run on a particular US bank that I happen to have accounts/cash in, what actually happens at the bank? Do they close the bank up completely? Can you still access your safe deposit box or is everything shut down? The reason I ask is that if I moved physical cash from my “electronic accounts” to a safe deposit box, will I have …


Letter Re: Advice on Police Department Trade-In Guns

Hi Jim, I saw the posting about police trade-in guns and thought I could weigh in both as a cop and as a law enforcement firearms instructor and armorer. Cop trade in guns can be a real steal if a buyer understands a few things. First, a majority of trade-in guns are low mileage, high wear guns. What that means is that the guns will often see anywhere from minimal to extensive holster wear. However, in this day and age, a majority of cops are not routine shooters and therefore, rarely shoot their assigned duty pistols. If a buyer has …


One Important Implication of the Weaker U.S. Dollar

The US Dollar recently posted new lows against most currencies. Most notably it now takes $1.39 to a buy a Euro, $2 to buy a British Pound and the Canadian Dollar is at 97.16–nearing parity with the US Dollar! This weakness in the once-almighty dollar may help boost US exports, but overall the weak dollar is bad news for Americans. Most importantly for those interested in preparedness, it is making some key imported items prohibitively expensive. This includes optics from Germany, water filters from England, and spare gun parts from Austria and elsewhere. Since the Federal Reserve has opted for …


Weekly Survival Real Estate Market Update

The Disappearing “Jumbo” Creates a Window of Opportunity for Some Retreat Buyers For many years the “Jumbo” mortgage has been the means by which middle class buyers have purchased A.) Large homes, B.) Homes on large acreages, or C.) Homes in desirable suburbs. With the recent credit market crisis, the availability of Jumbo loans has declined precipitously. This has had a number of immediate effects. First, it has been an impetus for owners of houses that had been listed between $417,000 and $450,000 to lower their asking prices to $416,000 or less. Secondly, with a few exceptions, it has effectively …


Letter Re: Suburban Survival

Hi Jim and Family, I truly enjoy reading your survival blog and learn from it daily and weekly. However I believe you are skipping over a topic that would benefit your readers….most of your readers. I would think that most of your readers who check out and read your site on a daily basis do not have a remote retreat in Idaho, Montana, Nevada, Utah, or Wyoming. Most of your readers I’m sure live like me in American Suburbs, trapped and looking for a way to get out but in the mean time prepping for what we all know is …


Bad News on the FOREX: The US Dollar Teeters on the Brink

We note with alarm that the US Dollar Index is hovering around 79.96. This is the first time that it has dipped below the critical support level of 80. If the USD index closes below 80 for three trading days in row, beware! The Chartist Gnome tells me that the likely support level is 76. Just as I warned you, folks: Lower interest rates–instituted as a stopgap for the current liquidity panic–are to the detriment of the value of the US Dollar on the FOREX. If the Ben Bernanke and his band of fools on the Federal Reserve Board of …


Two Letters Re: Will Things Get as Bad as Described in “Patriots”?

Dear JWR, I think it’s great when people stop and think after reading your novel “Patriots”. I[‘m writing] in reply to Thompson’s question and your reply. (OBTW, I applaud Thompson’s double six pack purchase). In my opinion, some aspects of a collapse/terrorist attack aftermath can get as bad if not worse than in your novel, depending on where you live. Those of us that do have relatives with their head in the sand or somewhere else, you will have to make some tough decisions if and when the SHTF. Do you take the time to help out the ones that …


Letter Re: Safe Businesses in an Economic Depression?

Mr. Rawles: I’m convinced that given the bursting of the Debt Bubble, the American economy is about to take The Big Swim, a lot like it did back in the 1930s. If this does happen, what sort of businesses will be safe? Do you know what sorts of businesses bucked the down-trend in the 1930s? Thanks, – Chester JWR Replies: According to statistics published some 20 years ago by Dr.Ravi Batra, the safest businesses and industries during the worst years of the Great Depression (1929-1933) were: Repair shops Educational services (A lot of young men that couldn’t find work borrowed …


Letter Re: Trading Post or General Store

Jim: While keeping your profile low at the beginning of TEOTWAWKI makes perfect sense during the time period if and when the bandits and masses are looting. Once the dust settles, and the survivors begin to recreate a semblance of civilization, then the trading post, and it’s natural evolution, the general store will come into being. 1.) If you are in a remote location, you may not be well-suited to running such an enterprise, but if location permits then consider the benefits of providing this service. Consider also that as a SurvivalBlog reader, you already likely have a base of …


Letter Re: Advice on Construction a Hiding Place for Precious Metals

Jim- I’ve got a plain, white, lidded bucket of coins (that’s the way the dealer packed them for me) on the floor of my guest bedroom closet. Above it is an old daypack with vital papers and bugout money. The closet, like most folks’, is full of shoes, coats, caps. I’m counting on [Edgar Allan Poe’s] The Purloined Letter idea. My thinking is that the Bad Guys will go first for the master bedroom–and that’s where I’m well prepared to meet them. On the other hand, if I have to bug out quickly, I will have these things ready to …


Letter Re: Resources for Researching Retreat Locales

Hi Jim, My wife and I will be moving to Montana in the near future. While researching a location for our future home, we found the following links to be especially helpful for state tax and cost-of-living comparisons. Overall Tax Burden by State State Income Tax Rates State Sales Tax Rates Cost of Living Comparison Sincerely, – Jeff H. JWR Replies: Thanks for sending those very useful links. I just added them to my Retreat Areas web page.


Two Letters Re: Advice on Construction a Hiding Place for Precious Metals in a Home

James Before building a house with a walk-in vault, for years I stored firearms and ammo in an old soft drink vending machine. Bought the non-working machine for next to nothing, removed the guts, and had a cheap gun safe (if necessary, a locksmith could re-key an old machine for a few bucks). It held a lot, had an excellent locking system, would be hard to break into, but best of all was invisible. Placed in my garage and later a barn, with a few tools and old boxes stacked on top, no one ever gave it a second look. …


Letter Re: Honey Prices Escalating, Just as Predicted

Jim: Saw the post regarding imported honey. Heard the same thing from my small time honey supplier. For west coast Costco’s, Silverbow honey is pure and made from US and Canadian honey. Verified this with the folks at Silverbow, based in Moses Lake, Washington state. For the record, I do my best to support local businesses and suppliers in Washington state and the Pacific Northwest, followed (naturally!) by SurvivalBlog [paid advertisers and affiliate] advertisers. Regards, – MP near Seattle


The Future of the U.S. Suburban Real Estate Versus Rural Retreat Real Estate

In recent months I’ve been asked by several consulting clients if it is still a good time to buy a retreat property. The answer is yes. If you find a really phenomenal property, the answer is always yes. (Yes if you can buy it without going deep into to debt. ) In fact, some close family members bought the place of their dreams after consulting with me this last year. Say that you find a property that is in the region that you’ve selected, and it has all of the features that you’ve been looking for–such as gravity fed spring …