Category: Economics & Investing

Letter Re: Fiscal Fitness

Dear Jim, I’m an avid SurvivalBlog reader and I want to thank you for your insights and the valuable information you provide on the Blog. I purchased the “Rawles Gets You Ready” preparedness course and have enjoyed reading and studying it. Lately, it occurred to me that, along with all of the necessary planning that accompanies retreat preparation, as well as the recently discussed benefits of physical fitness, proper fiscal fitness is also crucial in completing these vital preparations. Most of us have to work for an income in order to live in our modern society, at least while we …


The Insidious Nature of Inflation–The Debasement of the U.S. Dollar Continues

I recently helped some elderly cousins move from their two story home of many years into a smaller one story apartment in a retirement community. (They are having “mobility” problems.) Part of this move involved cleaning out a storage space that hadn’t been touched in more than 40 years. The accumulation of household goods–mainly books–was not unusual or noteworthy. However, what was indeed notable was that many of the boxes had newspapers used as padding in the top. Pulling out these papers, which were mostly from 1958 was a real eye-opener for our kids. Here are some examples of the …


Letter Re: Total Tax Burdens of States as a Determining Factor in Relocation

James: I noted the snippet [from the recently released book Rawles on Retreat and Relocation] about tax burden by state recently on SurvivalBlog. This is a topic that has always confused me. You can find this kind of information in several places online, but it is often contradictory and it is very difficult to figure out how they come up with the numbers. I have lived most of my life in New Mexico, Colorado, and Wyoming. In Wyoming, we had no state income tax, limited sales tax (5% state and a max of 1% local, if I recall correctly), and …


Letter Re: Some Good Things Prompted By SurvivalBlog

Jim, The following are some things SurvivalBlog.com has prompted me to do since I began reading it: I’ve had no debt for 20 years, but my meager holdings are now about 1/3 precious metals. Is lead considered a precious metal? 🙂 My freezer is full of elk, whitetail deer, and caribou. I added to my long-term foods during your Safecastle special, but I’m now reviewing the viability of my existing stocks. Like the realtor’s mantra of “location, location, location”, a survivalist’s creed should be “Rotate, rotate, rotate. “ A 10 KW Generac generator is ready to be wired to my …


Silver–I Really, Really Told You So!

I noticed that the spot market price of silver closed at over $14 per ounce yesterday. Back when silver was around $7 an ounce I told you that silver was likely to double, and now, just 17 months later, it has indeed. I also predicted that silver would out-perform gold. I was right about that, too. As I’ve stated before, I think that we are in the opening phase of a multi-year bull market for precious metals, and a bear market for the dollar. I hope that you folks took my advice and bought some silver. Back on August 6, …


Letter Re: Signs of Potential Currency Hyperinflation, by Lee Rogers

Jim, The article on currency hyperinflation [by Lee Roger, posted on November 30th] was interesting. However, trying to keep the puny penny alive to prevent hyperinflation is like trying to prevent floods by banning depth gauges. Someone will need to explain to me why we need any coinage with a denomination less than the value of a minute of a minimum wage worker’s time. For decades in earlier times, our smallest coin was worth about as much as out current dime. How many billions in wasted time would be saved if we had a simple coinage system that reflected real …


Letter Re: A Further Slide For The US Dollar?

Jim, I wonder how many other folks have read this: ” …Ritholtz told WorldNetDaily that yesterday’s downward move “was a major market correction that points to the risk of subsequent downside to the dollar,” and “… but the recent fall suggests “the probabilities have increased of a major dollar correction, or even of a collapse.” ” The whole story can be found at the WorldNetDaily web site. – Joe from Tennessee


Signs of Potential Currency Hyperinflation, by Lee Rogers

Defeat the Coin Act of 2006, by Lee Rogers at The Funny Money Report. Here is an excerpt: “Over this past summer a bill was introduced in the U.S. House of Representatives called the Currency Overhaul for an Industrious Nation. This bill is also referred to as the Coin Act of 2006 or House Resolution 5818. Introduced by Representative Jim Kolbe from Arizona the bill was referred to the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology this past August. The purpose of the bill according to the text of the bill itself is to modernize the legal …


Letter Re: Advice on Cash and Weapons While Traveling Overseas

Mr Rawles: My first family vacation is coming up and we’ll be in New Zealand for three weeks. I’ll be away from my food, guns, ammunition, and assorted survival stash. Add to that that I can’t take more than $10,000 in cash out of the country and can’t take any weapons with me. So, what do you take with you on such a trip? Gold is too heavy. Any ideas on what to bring that won’t weigh me down. Thanks, – S. JWR Replies: Assuming that your main purposes in carrying cash and/or specie would be 1.) to secure passage …


Two Letters Re: Another Perspective on Selecting Barter Goods

Mr. Rawles: I’m glad to see I’m not the only one that thinks having skills in different areas is a great barter tool. I worked for years as a mechanic, in my thirties I changed careers and went into construction as a General Contractor. After about 10 years in construction. I semi-retired and when to school to become a professional farrier. I spent seven years shoeing horses and working metal in a forge. That lead me into custom knife making. My wife & I have been selling handmade and factory knives for the last several years. I have always kept …


Letter Re: Barter as an Investment and a Hedge

While barter for necessities is one possibility, barter for wealth is another. A poor man with a small investment in an essential TEOTWAWKI item can magnify his wealth. If you are not in a position to outfit yourself with the food/weapons/tools you would like now, consider a barter investment. Something you can get cheaply now, and then trade for the items that are currently out of your budget. When choosing barter goods for storage, consider seven things. Original cost, size, availability, need, divisibility, verification, and indestructibility. Items stored for barter should: (1) Have a very low initial cost. In this …


Another Perspective on Selecting Barter Goods, by OSOM

Dear Jim: The recent letter on barter goods caused me to sit down and organize my thoughts on the matter. Running a successful retail/wholesale operation, I can see some caveats and analysis that needs further exploration. What’s WRONG with Barter Goods As has been well emphasized before – forget about barter goods until you are squared away for your own logistics. Beyond that, remember that barter goods are much inferior to money or cash in a functioning economy, with a good division of labor. If you need to sell them to raise cash, it will take some effort, and you …


Two Letters Re: Alcohol and Tobacco as Barter Items

Mr. Rawles: Thanks to Warhawke for his very well written article. There are two items conspicuous in their absence, tobacco and alcohol. I seem to remember reading somewhere, perhaps in the novel Lucifer’s Hammer, that people will always want to smoke and drink no matter how bad things are. I am wondering if you and/or Warhawke have any thoughts? Would it be prudent to stock an occasional can of Plowboy tobacco and some of the little airline bottles of booze? I’m very Interested in your thoughts. – Carl In Wisconsin Sir: Greetings and thanks for the great web site. In …


Getting Ready for Survival On a (Broken) Shoestring Budget by J. Cole

Since the mid-1960s, after reading Pat Frank’s novel Alas Babylon, I have been interested in preparing myself for TEOTWAWKI. And, as a child of the 1950s growing up in central Florida, I was taught early to be ready in case of nuclear war, so Frank’s book was not that far-fetched to me. My family was poor by any standard you could compare it to in those days. There was no chance of us ever affording a “bomb shelter” but preparations were made as best we could. We stocked up on canned food and water, we had a central hallway with …


Stealth Inflation, by Inyokern

This is in response to this article you posted a link to The Fed and Baby Boomers. The Federal Reserve is trying its best to solve the incoming budget crisis as the baby boomers near retirement age. Soon a relatively low number of workers will be paying taxes to support a high number of retirees. Really unsustainable numbers are involved. So how do you solve it? Well, either you tell yourself that the youth will pay for it because they have no choice (which would be a bad assumption), or you find a way to make the money paid to …