Category: Economics & Investing

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 …


Two Letters Re: Projecting Some Possible Outcomes for The Panic of 2007

Jim, Very, very well done post, “Possible Outcomes for the Panic of 2007”. I would say you nailed it as good as can be done. However you will not be invited to be a guest on CNBC. – DAV Jim: Don’t ignore the compounding effects of a) an energy shock from peak oil, a major gulf hurricane, or geopolitical conflicts, b) natural disasters, particularly major 8.0+ earthquakes on the West Coast or the New Madrid fault, or c) wars and terror attacks driven by causes other than angry debt collectors (e.g. Al Qaeda, false flag attacks). All of these could …


Projecting Some Possible Outcomes for The Panic of 2007-2008

I’m sure that you’ve been reading about the current liquidity crisis. But I’m not sure that the average citizen realizes the full implications. Twenty years ago, borrowed money was a lubricant for the American economy. Now it is the economy. Without credit at all levels–consumer, corporate, and government–America as we know it would cease to exist. We live in what economist Bill Bonner calls The Empire of Debt. Because of the lending crisis, the U.S., economy is teetering on precipice. Writing in his Reality Check e-newsletter this week, Dr. Gary North pointed out: “On August 15, the 90-day T-bill rate …


Letter Re: Honey Prices Escalating, Just as Predicted

Jim: Several months ago, I e-mailed you and the others on the blog about bulk honey prices going up. They stabilized at $7.99 for a 96 liquid ounce jug of Silverbow brand honey at Costco for many months. Two weeks ago, a jug of honey was $7.99. As of today, the same jug is $8.79, a 90 cent price increase. I put out some questions as to why the price increase and all I am hearing is minor costs due to dwindling honey supplies (as was discussed in SurvivalBlog) but [also] a greater [wholesale] cost due to transportation costs as …


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

Jim, After being scared Schumerless by the potential US economy meltdown and reading various related posts on SurvivalBlog, I finally took the plunge and purchased some junk silver coins. Since I plan to store these at home rather than a bank safe deposit box (because of potential accessibility problems), would you please recommend a strategy for storage. I’m assuming a small, somewhat hidden, safe bolted to the floor/wall would be reasonable. Any recommendations? Thanks, – Russ S. JWR Replies: Unless you already own a large home vault–such as a gun vault–I recommend that you construct one or more secret caches …


A Full Scale U.S. Dollar Panic Before November?

The news wires were abuzz last week about the global credit squeeze. Bankers are unwilling to make loans when they can’t calculate risk. What risk? Here is a big one: Many of their clients have derivatives exposure, which means that lenders can no longer calculate their credit worthiness. In the banking world, the standard “safe” answer to any loan question in the absence of data is almost universally no. I surmise that if this situation gets any worse, governments may step in and make loan guarantees. (Meaning that the taxpayers would shoulder the risk instead of the bankers.) That may …