Category: Emerging Threats

Letter Re: Are Simultaneous Inflation and Deflation Possible?

Hi Jim, Your excellent post about the possibility of simultaneous inflation and deflation got my head to spinning about ways to protect ourselves from a seemingly near-certain banking crisis. Such a scenario would certainly be a major headache for everyone, no matter how large their bank accounts, but it would be a huge problem for those of us who are in business for ourselves and need a constant cash flow through the banking system to pay payroll, expenses, taxes, etc. Therefore, I wondered if you and/or any of your readers had any suggestions for preparing for banking problems ahead of …


Two Letters Re: Are Simultaneous Inflation and Deflation Possible?

Jim, We are clearly experiencing deflation, as bad debt and derivatives unwind. At the same time there appears to be massive inflation by the Fed, or else where did the three Trillion for Iraq come from? The only “X factor” now is the money multiplier. Reserve requirements are now [effectively] zero. A good video (Flash required). But now eliminate the reserve component, [and its] Zimbabwe dollars ahoy. Here is some scary stuff, directly from the Fed. And here is an explanation similar to what I had wanted to write about the “Its the Economy Stupid” with Clinton and Greenspan – …


Are Simultaneous Inflation and Deflation Possible?

I often have friends and clients ask me how I can talk about inflation and deflation in the same breath. They’ve asked: “But I thought that inflation and deflation were contradictory. How do you think that we could experience both inflation and deflation at the same time?” Let me explain, starting with a bit of background: The fractional reserve banking system, based on usury, creates money. Here is a simplified example: Each time you deposit a $1,000 at your local bank, the bank then lends nearly all of that money out to someone else, charging interest. The bank holds just …


Letter Re: Building a Kalashnikov at Home

Dear Jim, As you know, it’s legal in America to build your own standard firearm for personal use [by manufacturing your own receiver.] One of the best ways to get a discreet, legal, off-paper SHTF rifle is an imported de-milled Kalashnikov (AK) kit, with a new, home-built receiver. Take a look at this web site. His heat treating and machine and tool instructions are accurate. This is the best site I’ve seen on the subject. I was able to tear down a Romanian kit and assemble a working AK in about 8 hours. Beginners will likely need a couple of …


Letter Re: Drastic Changes in the Global Derivatives Market–Be Ready for the Mother of All Bailouts

Jim, Scroll down this article to the link to the Quarterly Derivatives Fact Sheet. It shows Citi[Bank] exposed to $3 trillion and J.P. Morgan at $7.8 trillion [in OTC derivatives.] Continue to the bottom of the piece for “Intelligence Czar Can Waive SEC Rules.” It looks like the Plunge Protection Team is operating in overdrive. Eisenhower warned of “The military-industrial complex”. What about the corporate-government complex? This looks like something Il Duce would have been proud of. Best wishes for our free enterprise system, – William JWR Replies: I’m glad to see that some readers took the time to look …


Letter Re: Tradeoffs of Various Retreat Designs

Hi Jim What are your thoughts on the advantages of basements for cool storage, elevated construction for flood protection, sod roof/earth contact for insulation versus steel roofs for water collection? Perhaps some of the SurvivalBlog readers may wish to submit hypothetical retreat layouts with advantages and disadvantages and why they would choose a particular layout design. Regards,- JG JWR Replies: A sod roof or earth-berming creates some contradictions in retreat design goals, most notably that they typically block the defender’s view of one entire flank. This can be partially mitigated by properly placing supplementary defensive positions. Sod roofs are also …


The Credit Collapse–The World’s Bankers Revert to Saying “No”

A recent news article titled Dresdner Rescues $19 Billion SIV, Follows Citigroup illustrates the severity of the global liquidity collapse. Note that the article mentions that the K2 SIV had no “direct exposure” to securities backed by subprime or midprime debt. But yet the fund failed dramatically. This adds credence to my assertion that the world’s entire credit market is essentially broken, and that despite frantic attempts by the central banks to inject liquidity (BTW, another $25 billion was just injected the Fed on Thursday), most of the major financial institutions are starting to crumble. In the very near future, …


The “Come as You Are” Collapse–Have the Right Tools and Skills

When the Second World War broke out in September, 1939, the United States had nearly two full years to ramp up military training and production before decisively confronting the Axis powers. In the late 1970s, looking at the recent experience of the 1973 Arab-Israeli War, the Pentagon’s strategic planners came to the realization that the next major war that the US military would wage would not be like the Second World War. There would not be the luxury of time to train and equip. They realized that we would have to fight with only what we had available on Day …


Letter Re: Your Bug Out Vehicle as Your Daily Driver

I take a different approach to choosing a Bug Out Vehicle (BOV). I recognize many who read this site can afford a well equipped vehicle for your BOV, but not all are in that position. Let me offer a few suggestions for a different slant on the need to get out of Dodge. Here is a description of my daily work/family car. This is a 1999 Plymouth Voyager Minivan, in the longer wheelbase version. This has a 3.3L V-6, and gets about 18 MPG around town and approximately 22-23 MPG on the highway, depending on traffic. This is rated for …


Letter Re: Recommendation for the Movie “Right at Your Door”

Jim, If you haven’t had the chance, I highly recommend the Lionsgate movie titled ‘Right at Your Door’. Without giving anything away, it is about a large scale terrorist attack on Los Angeles . It’s not a traditional disaster movie that tries to cover all the angles, dazzle with special effects and thrill with drama; instead it tells the story of one couple from the suburbs that most should easily relate to. In no time at all, you see the vulnerability of the average person, and the break down of systems we take for granted, how it all leaves us …


Identity Theft–The Jury Duty Scam

The following is one of those items that widely gets circulated via e-mail, but this one is legitimate and I think that warrants posting to the blog: “Be prepared should you get this call. Most of us take those summonses for jury duty seriously, but enough people skip out on their civic duty, that a new and ominous kind of fraud has surfaced. The caller claims to be a jury coordinator. If you protest that you never received a summons for jury duty, the scammer asks you for your Social Security number and date of birth so he or she …


Letter Re: Vehicle Selection in Light of Potential Post-Peak Oil Shortages

Jim, no one seems to be discussing what kind of cars to buy in light of the Peak Oil situation. My reading so far has been to stay away from hybrid cars. My situation is that I have a 2003 4×4 V8 Toyota 4Runner. I commute about 30 miles each way to work and [the price of] gas kills me now. My car weighs 6,000 pounds and I don’t need a vehicle that big to tow myself around-I am single. I expect the gas prices to go up drastically in the next five years. I am considering trading in for …


Self-Sufficiency in Northern Nevada

Over at the Bison Survival Blog (formerly called the Bison Newsletter), editor Jim Dakin recently posted an interesting piece titled “Economics of Self-Sufficiency.” I recommend his blog, although it is with the caveat that there is a lot of foul language posted there, especially in some of the comments posted by readers. For several years, Jim Dakin has advocated the low cost retreating approach of buying an inexpensive piece of land (what he calls “junk land”), and living very frugally, with a large used travel trailer for shelter. Jim Dakin presently lives in Carson City, Nevada, in the rain shadow …


Guest Editorial: The Great Bust of ’08, by Mike Whitney

On January 14, 2008 the FDIC web site began posting the rules for reimbursing depositors in the event of a bank failure. The Federal Deposit Insurance Corporation (FDIC) is required to “determine the total insured amount for each depositor…..as of the day of the failure” and return their money as quickly as possible. The agency is “modernizing its current business processes and procedures for determining deposit insurance coverage in the event of a failure of one of the largest insured depository institutions.” The implication is clear. The FDIC has begun the “death watch” on the many banks which are currently …


Finding Your Dream Retreat: It is Time to Watch the Foreclosure Listings

I often get e-mails from readers, complaining that the retreat properties that they see listed are too expensive. Typically is something like: “I found a couple of good places, but they are beyond my reach.” Here is one possible solution: Buy on the other guy’s weakness. There are lots of foreclosures now on the market, and the foreclosure rate is expected to increase as the real estate bubble continues to deflate, and as the US economy slides into recession. (In my estimation, here is the equation for the next four years: Recession equals lay-offs, and layoffs equals missed house payments, …