Credit Market Derivatives: The Eve of Destruction

Interest rate turmoil again affected holding company trading revenues heavily in the first and second quarters of 2013. According to the latest report from the U.S. Office of the Compttroller of the Currency (OCC), rate trading derivatives losses were $3.018 Billion in 1Q 2013 and $3.804 Billion in 2Q 2013. It is noteworthy that the present-day casino in credit derivatives has built up in the era of ZIRP, where interest rate changes have been miniscule. The losses reported in the first two quarters were apparently triggered by the unexpected rate moves of less than 20 basis points. (Two tenths of …




We Have Lost Our Way, by An Optimist in the Redoubt

This may inflame some folks, but for others I hope it jogs our brain cells to ask, how did we get to this spot, and why are we of this prepper mindset? Think back to the early sixties (if you can), 6th grade in sunny California, and unlike my folks who suffered through the Great Depression, life was good.  NY Yankees’ Mickey Mantle and Roger Maris were hitting away, trying to break the Babe’s home run record.  Every kid in my school played ball, at every opportunity, and you carried your glove with you, everywhere…it was a mark of boyhood. …




A Written Plan for Your Preparedness, by M.B.

I am an active prepper. I do not have a retreat or bug-out vehicle (yet), but I do what I can for bugging-in and preparing for emergencies. I have extensive food and water preps, tactical supplies, and all of the other trappings of modern-day prepping. Although my family is aware of my prepping, and support my efforts, they are not “in the loop” with how to do what, when to do it, and what to do it with. I have come to realize that many of my preps will be useless if anything happens to me. A good example of …




Life in the Year 2020: America With 20/20 Hindsight

By the year 2020 we may be in the midst of (or in the early stages of recovery from) a major depression or perhaps even a full-blown socioeconomic collapse. An old saying is: “Hindsight is 20/20.” So here is a gedanken: What will people observe in the year 2020, with the benefit of hindsight? The following is my conjecture on what folks will cite when asked: “What went wrong?” Profligate government spending at all levels Multigenerational welfare Rampant food stamp dependence (1/6th of the populace, as of 2013!) Loss of American competitiveness Declining academic standards and performance Decline in manufacturing …




Letter Re: Thoughts on Barbara Tuchman and System Fragility

James, I was reading Tuchman’s seminal work The Guns of August last night and found this quote, where she describes the emphasis in 1910 by author Norman Angell in his book The Great Illusion on how the increasing connectedness of business and nations would assuredly preclude future conflict: ‘By impressive examples and incontrovertible argument Angell showed that in the present financial and economic interdependence of nations, the victor would suffer equally with the vanquished; therefore war had become unprofitable; therefor no nation would be so foolish as to start one.’ This cited work was published in 1910, just prior to …




Bugging Out of the City with Your Family, by O. Dog

The never-ending threat of the TEOTWAWKI looms in the depth of all of our minds.  My work experience lays primarily in public safety, government peroration to emergency response, tactical team assaults, gang mentality and survival, logistics and law enforcement radio communication.  My personal experience is very broad beginning with my first job at age 15, working continuously through college, being married for the past 16 years to my “high school sweetheart” and raising three young children.  I have been validated in court as an expert in several fields regarding gangs, firearms and narcotics.  I would like to share with you …




Four Letters Re: Natural Gas Powered Generators in a Disaster–Their Compressors, and Yours

Captain Rawles, I saw the disagreement from the former natural gas industry gent located in Texas about your grid assertions as they relate to potential natural gas outages. Two years ago in Northern New Mexico there was a multi-day natural gas outage to 30,000 homes and it was due to precautionary measures from Texas, caused by rolling blackouts.  New Mexico made the decision to keep the population centers pressurized since it would be more difficult to get the pressure back up in those areas compared to the smaller yet more remote pipelines in the northern part of the state.  I …




Three Letters Re: Natural Gas Powered Generators in a Disaster–Their Compressors, and Yours

JWR, Thank you for letting your readers know about [public utility] natural gas system compressor stations. I, for one, was was blissfully ignorant about them, and had just assumed that natural gas was “always on.” So, now knowing that, I can now see that a tri-fuel generator that can quickly be changed to propane or gasoline would be best. Thanks also for mentioning the capacity limits of generators. That I was aware of, but I hadn’t ever looked at the specs on my GE refrigerator/freezer. Now I can see that I need to do a “load budget”, to determine what …




Letter Re: Natural Gas Powered Generators in a Disaster–Their Compressors, and Yours

James, Thanks for the information you deliver every day. I have recently gone on Social Security Disability and have some money to further our preps. My wife and I will hunker down in place, that being said, we have done what we can to make this as easy as possible. We can heat our home without electricity, but still need a solution for limited electric needs in the event of power outage. We are looking at the Honda EU2000i portable generator with the multi-fuel upgrade. In our years here we have never lost our natural gas supply, but have often …




How to Deal with Dead Bodies in a Survival Situation, by Tim K.

During a break-down of society you may happen upon a dead body. In a without-rule-of-law situation such would not be unusual. This article will give you a rough outline of what to look for when you examine a dead body. The dead body may be near your camp and you may need to get rid of it pronto. There are several reasons why you might need to closely scrutinize a corpse and document what you see. You may need to protect yourself from the outbreak of disease. You may need to protect yourself from later accusations of murder once the …




Interrogation for Preppers, by Tim G.

(Editor’s Introductory Note: The following article is presented as an intellectual exercise, or gedanken. Be forewarned that there are mentions of torture (mental and physical) herein which are of course not conscionable behavior! But this mention is only for the sake of showing the full range of potential interrogation techniques, and as a warning that in the future — under different circumstances — you might have to be prepared to resist interrogation. “Forewarned is fore-armed.” Again, none of the following is intended to encourage any SurvivalBlog readers to do anything immoral, or illegal, or unethical. It is in your own …




Letter Re: Beware of Fake Cold Steel and Trijicon Products

Dear JWR, I was just surfing the Internet and found a site selling a lot of fake goods, called DHGate.com. How about a supposed Cold Steel Trail Master for under $20? Seeing these fakes makes me glad that I got all that I’ll need years ago–long before the risk of buying fakes. I think that there should be a loud warning put out about this. Here is a link to their fake Cold Steel knives.   They also have fake Trijicon scopes for sale.   Beware! – Simon M.




Letter Re: Declining Aquifers

Hello Mr. Rawles, I am a great fan of your work and I eagerly anticipate the release of your new novel.   I live in rural Northeastern Colorado, where both sides of my family settled in the 1870s.  The mid-sized ranch, 1,900 acres, that I live on has been owned by my family for 104 years.  I raise cattle, goats, horses and hay along with my dad, my wife and kids.  I also have a “government job” in local emergency services to help make ends meet.    I read the recent article by Denise Chow of Live Science, titled Water Woes: …




Stuff Hitting the Fan: A Position Paper – Part 2, by R.L.

(Continued from Part 1) Level I Scenario In these paragraphs, we will look at the areas of primary and secondary importance as they can be managed in a Level I scenario. Water A person needs around two gallons per day for cooking and rudimentary cleaning.  For short term emergencies it may be possible to store up two weeks or more water, that much should be stored up anyway.  When you store water, treat it with iodine or Clorox or boil (iodine is better, boiling is best) and rotate water stores every six months, see level II instructions for disinfecting ratios.  …




Stuff Hitting the Fan: A Position Paper – Part 1, by R.L.

The United States of America is a very resilient country; that is to say, the people of the United States are a very resilient people.  But, stuff happens and our current crop of politicians seems determined to drive us into the ground with their short-sighted and self-serving policies.  The purpose of this paper is to briefly identify some possible trouble spots, and suggest a few remedial type actions to help prepare for any adverse consequences of catastrophic failures induced by pin head politicians.  Most of the current problems we face have their origin firmly rooted in, and are fertilized by, …