Category: Emerging Threats

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 …


Letter Re: What Are the Economic Collapse Indicators to Watch For?

Jim, Some of us may be stuck within the city limits until ‘the last possible moment’ before an event such as WTSHTF. Can you suggest a day-to-day procedure or strategy to now follow for monitoring specific and reliable news outlets or information sources in determining when our G.O.O.D. action plan should be initiated? . Obviously, many people such as myself, have all the ‘other’ recommended Rawles preparations in place but are still at a disadvantage from those that were able to set up their retreat ahead of time and to have evacuated from a city. It’s the best that I …


The MOAB Accelerates the Inevitable Destruction of the US Dollar

Back in March, I coined the acronym MOAB (for Mother Of All Bailouts), to describe the Federal government’s continuously-expanding response to the global credit collapse. My family has been getting great chuckles mentioning each time that commentators and legislators start using the term. These have included Michelle Malkin, Congressman Ron Paul, Senator Richard Shelby, and Joel Skousen. So now we are waiting for a pronouncement for Al Gore, that he invented both the term and the acronym. The government’s virtually uncontrolled bailout spree has now expanded to more than 1.5 trillion dollars, and there is no end in sight. At …


Even Chuck Schumer Thinks that We Might Be in Deep Schumer

A front page headline in The New York Times on Friday shouted: Congressional Leaders Stunned by Warnings. The article began: “It was a room full of people who rarely hold their tongues. But as the Fed chairman, Ben S. Bernanke, laid out the potentially devastating ramifications of the financial crisis before congressional leaders on Thursday night, there was a stunned silence at first.” Later in the piece, it mentions: “…the congressional leaders were told “that we’re literally maybe days away from a complete meltdown of our financial system, with all the implications here at home and globally.’” U.S. Senator Charles …


Letter Re: Comments on the 2008 Financial Collapse and the Mother of All Bailouts (MOAB)

Hi Jim, This [current economic news] is nauseating. Now, not only are we in the insurance business, but we the taxpayer are going to be forced to purchase all of the bad and recklessly created debt generated over the last eight years. We know it’s bad, it’s even been called “toxic debt”. We’re not going to be given a choice on whether or not we want to purchase it. It’s being purchased in our name and we have no say about it. I can think of no better definition of socialism. If this is not the end of the world …


Dear Mr. Fuld: It’s The End of the World As We Know It

The recent news headlines about the investment banking crisis have answered the question that I often get from readers: “Why do you spend so much time talking about economics?” In my estimation, an economic crisis is the most likely trigger for a societal collapse, in the short term. The Lehman Brothers debacle is just a microcosmic preview of the global credit collapse. It is also a good illustration of the derivatives risk that I’ve been warning about for many years. How many times do I have to say this? The entire credit system is broken and it will be a …


Letter Re: Just In Time Greenback Cash Supply for American Banks

Mr. Rawles, I worked for Loomis/Fargo as an armed security technician. That means I was a member of an armored car crew. We serviced nearly the whole quarter of a certain state [un-named–not my current state of residence]. This included a major US Air Force base. Once a week we made runs to the area banks to deliver cash. Usually our load [included] 1 to 2 tons of coins. Cold cash totals were in the 1 to 3 million area each week and sometimes up to 5M seasonally. Very often we would arrive at a bank and the tellers would …


The Lehman Brothers Debacle Illustrates the Extent of the Global Credit Collapse

You probably saw yesterday’s headline in The Wall Street Journal: Lehman Races to Find a Buyer. Well, well. The once mighty Lehman Brothers Holdings firm had a market capitalization of $47 Billion last year. But when I last looked, it was down to a paltry $2.58 billion. The company is now definitely on the ropes. It is likely that the Mother of All Bailouts (MOAB) is going to grow even larger. There will probably be an announcement made this weekend of a “private” takeover of Lehman–possibly including an overseas “white knight”–but down in the fine print we will learn that …


Letter Re: National Geographic’s Cover Story on Soil and Food

JWR, Here’s a link to the September 2008 National Geographic cover story about the world’s fragile soils and their diminishing capacity to feed 6.5 billion+ people as well as cautionary examples of places where the soils can no longer support the existing population due to poor stewardship in the past. Pages 92-93 of the hardcopy edition have a great fold out map showing soil fertility areas around the world — a good retreats and relocation general shopping reference (although certainly not detailed enough for researching specific properties). My Best, – Lee in Hurricane Alley


Energy Dependence and U.S. Military Policy, by Edward C.

“Oil is the world’s most critical resource”, and “without it, nothing works in an industrialized civilization as currently configured”1.“The issue is not whether DoD will be able to obtain the oil it needs to provide for our national defense, because it will”, but “trends in global supply and consumption patterns” serve to further “complicate…the challenge of providing fuel to DoD’s far-flung operations as well as affecting the price DoD must pay for fuel”2. “Historically, no other energy source equals oil’s intrinsic qualities of extractability, transportability, versatility, and cost”3. The qualities that enabled oil to take over from coal as the …