Category: Emerging Threats

Letter Re: Prisons and Other Institutions Amidst a Societal Collapse?

Hello Jim, I work at a Correctional Facility. It is a Corrections Corporation of America (CCA) prison with some 1,900 inmates currently housed. Our facility is cross-fenced inside with a 12 foot fence topped with the military razor wire. Yes, you can get across it but you are going to pay a price. They have tried that here and the one that got across would have died in hours from the cuts without an emergency room. I have experienced a full blown riot. This was only 98 prisoners but they trashed the whole mess hall and it spilled out into …


Letter Re: Prisons and Other Institutions Amidst a Societal Collapse?

James: I live in a rural area in Wyoming. My husband, our children and I are lucky to have been raised in the area. We have access to thousands of family owned acreage to hunt, fish and garden on. Because we live in a rural area (at lease ninety miles in any direction from any large community) we are among the few that still have skills handed down to us that will allow us to be self sufficient. I have only recently found your blog and have enjoyed all of what I have read here. I agree wholeheartedly that our …


Letter Re: Anti-Hoarding Law of World War I as a Precedent for Future Laws?

Hello, Thanks for all the helpful information in SurvivalBlog. Regarding the reader who wrote in about the prospect of food hoarding laws; there have indeed been times where private U.S. citizens were forced to give up “unreasonable” stores of provisions, thus setting a possible precedent. For example: In 1918, Herbert Hoover (who would later be a US president), then working as head of the Food Administration, saw to it that a retired Navy doctor and his wife were charged for having about a year’s worth of foodstuffs in their home. (The law stated that more than thirty day supply was …


Letter Re: The Depression of the 1930s–Why No Societal Collapse?

Jim I run a museum that covers, in part, the Great Depression. In a reply to Steve’s letter about how people may react to a “modern” 1930s type depression, you listed a number of economic, social and cultural differences in America in the two time periods. I might add, or expand on, a few. In the 1930s, many more people lived on farms or gardened. Even in many towns and cities, it was common to have a garden and raise a few animals including chickens, rabbits, pigeons. An enormous difference, then and now, is that the garden seeds then were …


Letter Re: How to Handle Real Estate Holdings in a Economic Depression

Sir: If the global economy melts down and we experience a “greater depression” or worse. What is the best strategy for real estate that is already owned? I own a primary home and two rental properties in central Virginia but if the SHTF, I’m going to retreat along with numerous family members, to our farm about 25-30 miles from the nearest city. (It has hundreds of acres for growing, and has ample water, etc.) I don’t have substantial equity in any of my three houses and all mortgages 30 year fixed through Bank of America. Is it worth continuing to …


The Financial Crisis Will Soon Abate, But The Real Crisis Will Soon Begin, by Steve Saville

In an essay first published in 1969 and recently re-published, Murray Rothbard summarizes the causes and cures of economic depressions by drawing on the Business Cycle theory developed by the great Austrian economist Ludwig von Mises. Here’s an excerpt from this essay: “Mises, then, pinpoints the blame for the cycle on inflationary bank credit expansion propelled by the intervention of government and its central bank. What does Mises say should be done, say by government, once the depression arrives? What is the governmental role in the cure of depression? In the first place, government must cease inflating as soon as …


Four Letters Re: Currency Inflation Expectations for the US

James: The letter [from reader PNG] has severe mistakes and is fundamentally misleading – your readers deserve even more refutation before anyone is lulled into a false sense of security. To quote: “Let’s say the Treasury just invents another two trillion dollars by printing currency and forgiving loans. Let’s say they do that every year for the next five years. How much inflation would that create? The absolute maximum inflation rate from this example is about 20%, because there’s ten trillion dollars in circulation already.” These numbers are incredibly far off the mark. Actually M1 is the narrow definition of …


Letter Re: Currency Inflation Expectations for the US

Jim, You recently wrote: “The Treasury will undoubtedly be forced to monetize a good portion of the National Debt. This is effectively creating money out of thin air. Each new dollar so created will dilute the purchasing power of the dollars that are already in circulation (Both paper and electronic “dollars”.) This wholesale dollar fabrication will be outrageously inflationary. Be prepared for double digit and then triple digit inflation in the next few years.” Let’s say the Treasury just invents another two trillion dollars by printing currency and forgiving loans. Let’s say they do that every year for the next …


Letter Re: What Happened, and What Should We Watch For?

Jim, Thanks for the awesome blog. I consider it essential reading every day, especially now considering the terrible situation we find ourselves in. You keep speaking of mass inflation yet we see oil and other commodities falling in price along with, sadly, our home values. In a recent post you also mentioned being able to buy classic cars at rock bottom prices, closely followed by hyperinflation. Can you explain for all of us how this can come to pass and some of the warning signs? Thanks, – DZ in Louisiana. JWR Replies: To clarify, I mentioned buying older, fuel-inefficient vehicles …


Letter Re: Pre-Paying Utility Companies in Anticipation of Worsening Banking Disruptions?

Dear Mr. and Mrs. Rawles, Thank you for your excellent blog. My husband and I are benefiting tremendously from the hard work you have put in to this valuable resource. My question: With banking integrity a growing uncertainty, would it be prudent to devote our rather limited capital to build up a credit balance with our utility providers (water, electric and natural gas) in anticipation of possible interruptions in bank transactions? We do have modest contingency back-up systems for all three supplies but as long as the grid holds up we will use the utilities. Sincerely, – Mrs. T. from …


Like Something Out of a Novel–Some Predictions for 2009-to-2019

The economic headlines in the past couple of weeks have sounded like something out of a disaster novel that I once read wrote. The international financial and equities markets are spinning out of control, with seemingly wider and wider gyrations with each passing day. Since there are so many variables, the end result is difficult to firmly predict, but one thing is clear: It will be neither easy nor pleasant. My current prediction is that the governments of the English-speaking nations and Europe will co-conspire with the banksters to concoct the most grandiose Mother of All Bailouts (MOABs) yet. This …


Letter Re: Males – 15-25 Will Be the Most Dangerous Segment of Our Population in TEOTWAWKI

James, I believe in a TEOTWAWKI situation the most dangerous segment of the roving gangs will be the displaced teenage men. After all those are the ones that are warriors in other countries, not the fat 40’s couch potatoes. They are strong, tough and smart. In essence, we will be fighting our own neighbor’s children. Consider this news article from Arizona: Suburban gang’s rise unnerves authorities. Respectfully, – Robert O. JWR Replies: Sadly, I have to agree with you. OBTW, our friends in England refer them as “Yobs”, “Yobbos”, “Townies”, or “Chavs”.


From the SurvivalBlog Archives: 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 …


Our Changing Times: The Advent of Rule 157 and Perhaps Rule 308

We are living in unprecedented times. The global economy is being asphyxiated for lack of credit, and we face the prospect of an economic depression that could be worse than the Great Depression of the1930s. The Advent of Rule 157 One of the contributing factors in the unfolding banking debacle was the advent of Financial Accounting Standards Board (FASB) Rule 157, that went partially into effect on November 15, 2007. This was a financial accounting rule change that yanked the bankers back from the Fantasyland games that they had been playing with Collateralized Debt Obligations (CDOs), Credit Default Swaps (CDSs), …


From FerFAL in Argentina: A US Crash that Will Parallel Argentina’s?

Hi James, These are hard times, indeed. The parallels between the days before our own economy [in Argentina] collapsed and what’s going on today in America today are very hard to ignore. Our local television seems to be getting some kind of sick kick out of all this. They showing the comparisons, even editing politicians and economists speeches showing how similar they were to the ones the American politicians and economists are using right now. In some cases, they even said the exact same line, the only difference being the language. About the article “Letter Re: What Are the Economic …