Category: Economics & Investing

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 …


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 …