Notes from JWR:

I’ve been warning SurvivalBlog readers for more than four years about derivatives trading. And now there are now some troubling indicators that there could be a derivatives implosion and/or a credit collapse in the near future:

1.) SurvivalBlog reader Steve K. mentioned this article: Bond insurer Ambac files for bankruptcy. Steve commented: “This is a very, very big problem for the global financial system as Ambac was a huge player in Credit Default Swaps, Mortgage Backed Securities and all other derivatives. It’s all about counter party risk!

2.) Zero Hedge recently summed up the almost inconceivably enormous overhang of derivatives: According to the Office of the Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activities for the Second Quarter 2010 (most recent), the notional value of derivatives held by U.S. commercial banks is around $223.4 TRILLION. It is estimated that 95% of these contracts are held by just five banks.

3.) Michael Snyder recently wrote a piece for Business Insider wherein he listed 11 signs we’re on the verge of a global currency crisis.

4.) Our friend Chris Martenson just posted this: Alert: QE II Has Lit the Fuse

With those predictions in mind, to quote a song….”Hope you have got your things together!”

Today we present another entry for Round 31 of the SurvivalBlog non-fiction writing contest. The prizes for this round will include:

First Prize: A.) A course certificate from onPoint Tactical. This certificate will be for the prize winner’s choice of three-day civilian courses. (Excluding those restricted for military or government teams.) Three day onPoint courses normally cost $795, and B.) Two cases of Mountain House freeze dried assorted entrees, in #10 cans, courtesy of Ready Made Resources. (A $392 value.) C.) A 9-Tray Excalibur Food Dehydrator from (a $275 value), D.) A 500 round case of Fiocchi 9mm Parabellum (Luger ) with 124gr. Hornady XTP/HP projectiles, courtesy of Sunflower Ammo (a $249 value), and E.) An M17 medical kit from JRH Enterprises (a $179.95 value).

Second Prize: A.) A “grab bag” of preparedness gear and books from Jim’s Amazing Secret Bunker of Redundant Redundancy (JASBORR) with a retail value of at least $400, B.) A $250 gift card from Emergency Essentials, and C.) two cases of Meals, Ready to Eat (MREs), courtesy of (a $180 value).

Third Prize: A.) A copy of my “Rawles Gets You Ready” preparedness course, from Arbogast Publishing, and B.) a Royal Berkey water filter, courtesy of Directive 21. (This filter system is a $275 value.)

Round 31 ends on November 30th, so get busy writing and e-mail us your entry. Remember that articles that relate practical “how to” skills for survival have an advantage in the judging.