Category: Economics & Investing

Letter Re: Total Burden of State Taxes

Mr. Rawles, I reviewed the article from MSN Money regarding property taxes by state, mentioned by “J Eagle”. I could not help to look at Alabama because that is my home state. Unfortunately, I am not there now. However, property tax is low in Alabama but they have a 5% personal income tax and sales tax is charged on everything one purchases. This includes big ticket items such as cars and tractors (at a reduced rate from normal sales tax) to basic necessities (food, clothing, guns and ammunition at the normal sales tax rate). They also charge the pharmacies a …


Letter Re: The Pending Federal “Assault Weapons” Ban (H.R. 1022)

Jim, Have you read through this bill? The way things seem to be going/looking, is that 4-shot/capacity turnbolts will be all that’ll be “allowed”. Yes; I am scared. Any thoughts/comments/advice/assurances?- Ben L. JWR Replies: The H.R. 1022 bill scares me, too. Paragraph (L) is the nasty catch-all. That paragraph leaves the determination of what constitutes an “Assault Weapons” up to the arbitrary whim of the Attorney General (AG)–a political appointee. (Remember Janet Reno?) The real weasel phrase in paragraph (L) is “…and a firearm shall not be determined to be particularly suitable for sporting purposes solely because the firearm is …


Letter Re: U.S. Dollar Collapse? I Think We are Getting Close

Sir: Over this past weekend, I began re-reading “Patriots: Surviving the Coming Collapse” . I hadn’t touched it since mid-2000. Wow! page 10 includes:…”just before the Crunch…unofficial debt topped 19 trillion dollars…” a president that didn’t let trifles life ledger sheets and statistics get in his way…the real deficit was growing…”a full scale default on US Treasuries appears imminent…” Then I look at Internet financial and economic news feeds [and see] Fleet Street (London’s Wall Street) recommending that their client firms get out of the US Dollar (USD), China, UAE, Russia and others moving out of the USD. Many estimates …


Letter Re: More Evidence of Peak Oil Decline–Preparing for Much Higher Gasoline Prices

Dear Jim and Family, Bad news from the largest oil field in Mexico. The Canterell field, formerly reported to decline at 2% last August, 6% in October, and 11% in December has been rated at 25% today. Oil production has dropped from 1.99 million barrels per day to 1.5 million barrels per day. This is a very bad thing. Most of that oil goes to the USA via NAFTA treaties. There are no fields to replace it, and since Mexico has 51% leftist leanings, no oil company will risk investing there (Pemex was formed from seized foreign oil investments, most …


U.S. Currency Inflation–Is It Time to Knock a Zero Off the Dollar?

There have been many recent press reports about the base metal value of some small denomination U.S. coins now exceeding their face value. (For example 1.66 cents for a pre-1983 copper penny, and 6.65 cents for a U.S. nickel 5 cent piece. The latter may eventually have to be replaced with an aluminum token.) Fearing that they might disappear from circulation, the U.S. Treasury Department recently issued an edict banning the exportation or melting of pennies and nickels. This is a stopgap measure that ignores a much bigger issue: The U.S. currency has suffered from more than 70 years of …


Letter Re: The Derivatives Bubble

I wanted to say thanks so much for the excellent derivatives article. [“Derivatives–The Mystery Man Who’ll Break the Global Bank at Monte Carlo.”] I speculate in this market and wholly share your opinion about what exists, the ignorance of the implications, and the clear and present danger to the lifestyle of everyone on the planet. Keep up the good work with the blog and with excellent articles such as this. Respectfully, – CMC


Letter Re: Yet Another Article Touting “Mobility” for Survival

Jim: Thank you for response on the mobile survival fantasy. I think it is dangerous for the average Joe to believe that he can be a mountain man. Sure, some can, in some climates and locations with lots of training. Even then it’s dangerous and unpredictable. A twisted ankle can be the end of you. Remember too, those mountain survival stories were from the days when the wildlife in this country was at much higher levels. For most of us it means being cold, wet, tired, hungry and thirsty in the woods and being targets on the streets. (“Nice pack …


The Next Pandemic: Starvation in a Land of Plenty

At the dawn of the 21st century, we are living in an amazing time of prosperity. Our health care is excellent, our grocery store shelves burgeon with a huge assortment of fresh foods, and our telecommunications systems are lightning fast. We have relatively cheap transportation, and our cities are linked by an elaborate and fairly well-maintained system of roads, rails, canals, seaports, and airports. For the first time in human history, the majority of the world’s population will soon live in cities rather than in the countryside. But the downside to all this abundance is over-complexity, over-specialization, and lengthy supply …


Letter Re: Advice on Silver Coins and Silver Certificates

Dear Jim: I am new to survival preparedness but I am learning by reading SurvivalBlog every day and your book Patriots. I do have a question about junk silver. My dad always collected coins when I was a kid and he always told me about saving the ones from before 1965 as they were silver and I have a small stash from those years. But what about the [Eisenhower] “silver dollars” from the 1970’s? I always got those as gifts when I was a kid and I have a small stash of those too. Do these “silver dollars” have any …


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 …