Category: Economics & Investing

Letter Re: Silver as an Inflation Hedge

Hi Jim, First of all please pardon my English but this language is hard to learn, especially being from Cuba. Let’s talk about silver. As a survivalist one of my tools is silver and at this time I am using that survivalist tool. At this time my cost per gallon of gasoline is of $1.21 and the reason for that is that I pre-paid for my gasoline for the next two years in one oz silver rounds. Back in 1972 I paid $4.90 per ounce for my silver and in 1980 I sold it for $63.65 per ounce. I started …


Letter Re: Why Physical Gold Versus Gold Stocks?

Mr. Editor: Why on earth do you place such a strong emphasis on gold “in hand” as opposed to gold [mining] stocks? From what I’ve read, gold may soon double or triple [in price], but gold mining stocks like Barrick and Newmont are set to go up 5x to 7x. I think that you’ll be missing the boat as this bull market in [precious] metals continues. I feel sorry for you, pal. – Pete in Tampa JWR Replies: I recommend buying (and personally holding) physical gold rather than gold stocks for three reasons: safety, safety, and safety: The first “safety” …


U.S. Foreclosure Numbers are Up–Some Retreat Property Possibilities?

There has been a lot of news in recent weeks about real estate foreclosures in the US. Foreclosure.com (one of SurvivalBlog’s Affiliate advertisers) just published the following US residential real estate foreclosure statistics: National Highlights: * Foreclosure activity increased 36 percent from July * Foreclosure activity increased 115 percent from August 2006 * REO (“Real Estate Owned”)s increased 59% month over month, the biggest increase of any of the three foreclosure categories (Default, Auction, REO) State and Metropolitan Statistical Area (MSA) Highlights: * Nevada, California and Florida posted the top three state foreclosure rates * The states with the most …


Hedge Funds–A Disaster Story that Could Unfold in Quarterly Episodes

One of the consequences of the collapse of the credit bubble and the subprime lending fiasco in particular is with hedge funds. There is a substantial risk of uncontrollable instability in hedge funds that could potentially be disastrous for investors. This instability will likely be seen in waves of bad news that will come roughly once a quarter. First, let me provide a bit of background: 1.) Most hedge funds have rules that allow only quarterly redemptions (“cashing out”) by by their investors. (A few hedge funds even have only one annual redemption “window.”) Typically, the redemption requests must be …


Letter Re: Information Security Considerations When Selling a House with “Special Features”

Mr. Rawles- I truly enjoy and appreciate your site and hope to soon be able to express that with a [10 Cent Challenge] commitment. Perhaps one solution to the marketing of property with “special features” would be a multi-layered approach to advertising and responding. First present the property with a limited description such as general location and non-specific amenities using descriptions such as “special”, “hardened”, if appropriate and perhaps a philosophy statement and pricing that would lend a sense for the property without risking over-exposure. Interested parties could pursue a phone interview or email exchange to determine actual depth of …


Letter Re: Peace of Mind Through Systematic Preparedness

Dear James and SurvivalBlog Family: Thank you for this tremendously vital preparedness forum. It has been the direct impetus for me to seriously prepare to survive various natural disasters that could assail the New England area, but more importantly, to be prepared for the inevitable TEOTWAWKI situation, which I expect, we will face within a decade, as soon as the oft-predicted Winter Solstice of 2012–Which still leaves us plenty of time to prepare, if we only make that crucial decision to begin (or to enhance) our preparations and remain steadfast in our intentions to survive whatever may come our way. …


Letter Re: Advice on Short Term Shelter from Inflation

Mr. Rawles: After reading your recent comments regarding the possibility of extreme inflation in the US, I began asking myself how well prepared I am to handle such a situation. The answer was not pretty. You see I am only 24 years old and my wife and I are saving for a house, so most of our funds are tied up in some sort of bank. I fear that if inflation hits, all that cash in the bank will be worthless, and all my saving will be for naught. Do you have any suggestions on how a person like me …


Letter Re: Estimate on the Likelihood of an Economic Depression or Full-Scale Collapse?

Jim, What a lot of folks don’t think about is that during the last depression, almost 80% of the population was still connected to a family farm. They also knew how to can meats and vegetables and had all of the equipment to do so. It was a way of life for them. Today less than 1% is connected to a family/small farm. That is daunting. Even if some of the population knows how to can and has a small garden, How many of them have 500-600 jars, lids and rings? Got lots of Salt, a working smokehouse that doesn’t …


Letter Re: Estimate on the Likelihood of an Economic Depression or Full-Scale Collapse?

Jim, I know you get a lot of mail so I’ll be brief. I highly value your information and input on the current economy. I also have read your book “Patriots”, and your current assessment of our economy’s future terrifies me. What are the probable chances of this turning into a worse case scale as seen in your novel? Even if it is not worse case, I have no idea what a Moderate case would look like. Your wisdom would be greatly appreciated. Thank You.- William JWR Replies: In the context of America’s current economic situation (namely, the implosion of …


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 …