Category: Emerging Threats

The Coming Great Depression, by Charles Hugh Smith

I have been asked to address the coming Great Depression which is slowly but surely enveloping the globe. The irony of doing so in Thanksgiving week is not lost on me, and I want to preface my commentaries by saying that I do not tackle the subject cavalierly. There will be great suffering, on many levels, and the entire point of analyzing the situation is to lay the groundwork for alleviating the suffering by getting to the root causes of the financial, social and environmental disasters which are unfolding globally. Let’s start with the view of the U.S. from orbit. …


Two Letters Re: Finding Abandoned Properties, Post-TEOTWAWKI?

Sir, First let me say that I agree with the sentiments of D.O.’s reply to the original post. However; In a situation even less drastic than another depression, I believe there will be ‘abandoned’ properties everywhere you look due to foreclosures and displaced persons that can no longer find viable employment and have moved in with family or on to ‘greener’ pastures. The homeowners that lived in them, built them, and called them home, will not own them anymore. These homes will still have an owner, that would be the ‘bank’ that held the note, and also in some cases, …


Letter Re: Is the US Residential Real Estate Market Nearing the Bottom?

Hello Mr. Rawles: Seeing that houses are pretty much dirt cheap right now, would it be a good decision to buy one? what would happen to our debts (including the mortgage) when/if the Amero comes? would they disappear like they claim the American debt will? I hear radio advertisements about the IRS giving you up to [a] $7,500 [interest-free loan] on your 2008 taxes if you buy a house in 2008. So, again, would it be a good idea? would the Dollar amount be converted into Ameros? Thanks in advance for your response. As always, congratulations on and thank you …


The MOAB Keeps Growing, and Growing

Last Winter, when I first started writing about the Mother of All Bailouts (MOAB), I predicted that the cost of the bailout would grow inexorably. Sadly, I was all too right. In fact, the scope of the MOAB is now much larger than I had predicted, early in 2008. The latest tally thusfar is an almost incomprehensible $4.28 trillion US Dollars. But wait, it gets worse. In addition to bailing out bankers and insurance companies, more and more entities from outside the financial sector are lining up to the Federal trough. The TARP bailout set a dangerous precedent. There is …


Letter Re: UCLA’s Eye-Opening Colloquium on the Worldwide Financial and Economic Crisis

Hi, Yesterday [Friday. November 14, 2008] I attended the Marschak Colloquium on Mathematics in the Behavioral Sciences at UCLA {University of California, Los Angeles] . This thing is attended by lots of UCLA and USC [University of Southern California] economics professors, including many retired faculty members and other local luminaries. (Two seats to my right was author Alvin Toffler of “Future Shock” fame.) The main speakers presented for an hour, and then the whole group asked questions and discussed the topic. Here is the brief abstract that announced the talk: “The current worldwide financial and economic crisis is the greatest …


Letter Re: Peakniks Need Better OPSEC

James, Regarding those who gave their street addresses in the Peak Oil article that was recently mentioned: Indeed, it boggles the mind when people appear to have absolutely no concept of OPSEC. It betrays a mind that apparently has little or knowledge of the human animal, which the substitute for which must necessarily be a fantasy of some sort. If giving your address isn’t enough, how about these folks providing a full set of downloadable tactical maps for your retreat? Understandably they’re running an operation that provides for open visitation, for which the cartoon of the hippie village layout would …


Letter Re: Should We Currently Emphasize Storage Food or Gun Purchases?

Hello Jim, I’ve finished reading your fine novel “Patriots” several weeks ago, and have passed it on to another like-minded individual. I’ve also been scouring your web site daily for the last several months, and gleaning extremely valuable information not only from you, but the many fine individuals who add excellent links to current events. I have forwarded your link to others, and have it saved as “required reading” daily. A brief background on our family; I had been one of the Y2K aficionados, and had lived on the Big Island for many years. If it were still just my …


Letter Re: Michigan’s Upper Peninsula as a Retreat Locale

Hello James: A recent letter from a reader mentioned that he was looking for a retreat. If I remember correctly, that person lived in the Washington D.C. area. You had suggested Tennessee and Michigan’s Upper Peninsula (UP) as retreat possibilities.One disadvantage of Michigan’s UP for that particular reader is that to get to the UP, they will have to drive through, or very close to, Pittsburgh, Cleveland, Toledo, Detroit, and Saginaw. The Old Uooper was on-target regarding the challenges of living in many places in the UP both microclimate and soil are key factors. My personal choice would be to …


Letter Re: Criminal Gangs in TEOTWAWKI — Understanding a Potential Threat

Sir, I have one minor correction to Ryan’s excellent article. This quote is seriously out of date: “Outlaw motorcycle gangs rule the distribution of meth.” I beg to differ: the Mexican cartels now rule the distribution of meth. In the 1980s, the biker gangs employed some of the Mexican gangs to produce meth to avoid the repeated law enforcement arrests of its very visible members. Then in the 1990s the Mexicanns expanded out of the biker’s control and the biker gangs bought Meth from the Mexicans to redistribute. Why? Less LEO (law enforcement officer) detection an much less expensive meth. …


Letter Re: More About the Derivatives Bubble

James: It appears [corporate, hedge fund, and bank funds managers] have been playing a modern day Enron game with the OTC (Over The Counter) derivatives market. They have been taking their bad debts, and credit default swaps (CDSs), failed commercial loans, and construction loans and moving them to this unregulated and unlisted market to hide the true size of their toxic debts. Half of the financial monstrosity is projected to be in this “hide the bad debt” game. The [aggregate notional] number is so surreal, it is mind boggling. I may have missed you posting the recent article in The …


Criminal Gangs in TEOTWAWKI — Understanding a Potential Threat, by Ryan S.

This is a brief introduction to criminal gangs and gang culture. It is important to understand gangs as a potential threat that your retreat group could face. I have not intended this to be comprehensive. It would be a very daunting task to list and detail every gang or disruptive group occurring in the U.S. What I intending to do is make you aware of something you may have overlooked. I would like to enlighten the blog readers about another aspect of their situational awareness, namely gang recognition. This could be very important information for many people not just in …


Five Letters Re: Full Capacity Magazine Price Increases are Already Here

Jim, I wanted to contribute this the following to your ongoing discussion on high capacity magazines. Selling high capacity magazines is normally a small part of our business, but that changed last week. Between October 31 and today, we have sold more than I normally sell in a year. I had stocked up anticipating increased demand, but was nowhere near prepared for the huge surge in sales that we experienced. A normal order was 3 to 6 magazines, now it is 12 or more and we have had several customers buy in quantities of 100+. As a result, we are …


Letter Re: Some Changes in American Wholesale Food Distribution

Hi James You’ll recall hat I wrote to you a while back, forewarning of increasing prices for canned tuna, as I am in the import food business. I read Buckskin’s message with interest, as I sell to food distributors, of the type that he is referring to. What many of your readers may or may not know, is that a huge amount of our food products are imported. I don’t have exact figures on it, but there are certain categories of food products that are almost exclusively imported, as they either cannot be produced here at all or cannot be …


Five Letters Re: Full Capacity Magazine Price Increases are Already Here

Sir, Be advised, Cabela’s here in Fort Worth, Texas is sold out on all ammo except 22 LR and shotgun shells. A friend who went there today was amazed to find all ammo shelves emptied. The last time I went there (shortly before the election) the place was a mad house. Standing room only, many people turned down on their background checks (or delayed). I considered myself lucky to get in and out of there in an hour. I got my new toy, no problem and plenty of ammo “at sale price”. Cheaper Than Dirt’s prices have doubled or tripled. …


Letter Re: Deflation Possibly Followed by Mass Inflation?

Jim, I believe that we are in for deflation, not inflation. A simple error that most people make when considering this topic is language related: When discussing actions of the Fed they talk about ‘printing’ money. Well, the Fed (actually the Treasury) hardly ‘prints’ any money at all. In Zimbabwe they print money. Lots of money with lots of zeroes. Here, they just increase the number of zeroes in a computer. The difference is profound. When there is a lot of currency floating around then people use it to buy stuff. More currency with higher values means more currency chasing …