This is the birthday of Émile François Zola, a novelist and essayist. He is most often remembered as the author of “J’accuse” (I Accuse!), his lengthy open letter to president Félix Faure, which accused the French government of anti-semitism.
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Round 63 Non-Fiction Writing Contest Winners Announced!
First Prize goes to R.C. for “Winter Survival- Part 1”, “Part 2”, and “Part 3”, which was posted on February 23rd, 24th, and 25th, 2016.
- A Tactical Self-Contained 2-Series Solar Power Generator system from Always Empowered. This compact starter power system is packaged in a wheeled O.D. green EMP-shielded Pelican hard case (a $1,700 value),
- A Gunsite Academy Three Day Course Certificate that is good for any one, two, or three day course (a $1,195 value),
- A course certificate from onPoint Tactical 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,
- DRD Tactical is providing a 5.56 NATO QD Billet upper with a hammer forged, chrome-lined barrel and a hard case to go with your own AR lower. It will allow any standard AR-type rifle to have a quick change barrel, which can be assembled in less than one minute without the use of any tools and a compact carry capability in a hard case or 3-day pack (an $1,100 value),
- Gun Mag Warehouse is providing 20 Magpul PMAG 30-rd Magazines (a value of $300) and a Gun Mag Warehouse T-Shirt; (an equivalent prize will be awarded for residents in states with magazine restrictions),
- Two cases of Mountain House freeze-dried assorted entrees in #10 cans, courtesy of Ready Made Resources (a $350 value),
- The Ark Institute is donating a non-GMO, non-hybrid vegetable seed package (enough for two families of four) plus seed storage materials, a CD-ROM of Geri Guidetti’s book “Build Your Ark! How to Prepare for Self Reliance in Uncertain Times”, and two bottles of Potassium Iodate (a $325 retail value),
- A $250 gift certificate good for any product from Sunflower Ammo,
- KellyKettleUSA.com is donating both an AquaBrick water filtration kit with a retail value of $250, and
- Two cases of meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value).
Second Prize goes to Charles Fockaert for “Why You Need a Rocket Stove And How To Build Three Types- Part 1” and “Part 2”, Which was posted on March 8th and 9th, 2016.
- A Glock form factor SIRT laser training pistol and a SIRT AR-15/M4 Laser Training Bolt, courtesy of Next Level Training, which have a combined retail value of $589,
- A transferable certificate for a two-day Ultimate Bug Out Course from Florida Firearms Training (a $400 value),
- A Model 175 Series Solar Generator provided by Quantum Harvest LLC (a $439 value),
- A Trekker IV™ Four-Person Emergency Kit from Emergency Essentials (a $250 value),
- A $200 gift certificate good towards any books published by PrepperPress.com,
- A pre-selected assortment of military surplus gear from CJL Enterprize (a $300 value),
- RepackBox is providing a $300 gift certificate to their site, and
- Safecastle is providing a package of 10 LifeStraws (a $200 value)
Third Prize goes to Duliskov for “Backup Electric Power Design Considerations – Part 1”, “Part 2”, and “Part 3”, which was posted on March 19th, 20th, and 22nd, 2016.
- A Royal Berkey water filter, courtesy of Directive 21 (a $275 value),
- A $245 gift certificate from custom knife-maker Jon Kelly Designs, of Eureka, Montana,
- A large handmade clothes drying rack, a washboard, and a Homesteading for Beginners DVD, all courtesy of The Homestead Store, with a combined value of $206,
- Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy (a $185 retail value),
- Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security, LLC,
- Mayflower Trading is donating a $200 gift certificate for homesteading appliances,
- Montie Gear is donating a Precision Rest (a $249 value), and
- Two 1,000-foot spools of full mil-spec U.S.-made 750 paracord (in-stock colors only) from www.TOUGHGRID.com (a $240 value).
Honorable Mention prizes ($30 Amazon.com gift certificates via e-mail) have been awarded to the writers of these fine articles:
- “Friction Fire – Part 1”, and “Part 2”, by NE
- “How to Prepare a Refugee Bug Out Bag – Part 1”, and “Part 2”, by Charles T
- “Making Sense of What You Hear – Part 1”, “Part 2”, and “Part 3”, by Hal2000
- “Survival Habits – Part 1” and “Part 2”, by Northwoods
- “How Two People Can Build A Fully Functional Bug Out Cabin For About $10,000 In Just Two Days”, by S.T.
- “My Favorite Materials for Clothing”, by B.A.
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March in Precious Metals by Steven Cochran of Gainesville Coins
Welcome to SurvivalBlog’s Precious Metals Month in Review, by Steven Cochran of Gainesville Coins where we take a look at “the month that was” in precious metals. Each month, we cover the price action of gold and examine the “what” and “why” behind those numbers.
What Did Gold Do in March?
Gold had a bit of a roller coaster ride in March. Prices surged after the Fed did not raise benchmark interest rates at its March 16th policy meeting. Later in the month, a series of very hawkish speeches by five Federal Reserve regional presidents pushed gold down from its mid-month highs, but it recovered on a very dovish March 29th speech by Fed Chairwoman Janet Yellen. Yellen explicitly left open the door for QE4 (a fourth program of money printing and bond purchases) if needed.
Negative interest rates across the world and the lack of a rate increase by the Fed has gold recording its best quarter since 1986.
Factors Affecting Gold This Month
ECB Pulls Out The Stops
March 10th was the date of the European Central Bank’s policy meeting, which was more than anyone expected. ECB President Mario Draghi not only pushed benchmark interest rates even deeper into negative territory, he announced an expansion of the ECB’s quantitative easing program. Central bankers in Europe are losing their minds as their economies teeter on the brink of a deflationary spiral. Their policies of punishing banks and savers for daring to keep money on deposit has not had the expected outcome of spurring growth.
Noting all the global economic risks in play (Brexit, China debt crisis, U.S. elections), Bank of American analysts decreed the ECB policy announcement as “Quantitative Failure”. They note that “gold is one of the good investments left”.
Fed Rate Hike Speculation
Speaking of dovish central bank meetings, the Fed did not disappoint. Not only did it not raise interest rates again in March, but forward guidance showed that the majority of committee members had cut the expected number of rate hikes for 2016 from four to two. Gold went vertical on the news. In fact, all precious metals gained nearly 2½% in the first hour after the Fed statement. Crude oil gained 5%, while the dollar tanked.
Speculation on a rate hike next month went into high gear, as five of the 12 regional Fed presidents went on a hawkish media blitz in late March. All five talked up a very real possibility of an April rate hike, sending the dollar climbing and commodities lower.
On March 29th Chairwoman Yellen shot down this hawkish talk. Not only did she note global risks that were weighing on the U.S. economy, she opened the door to a possible QE4, if needed. She called present economic conditions worse than they were in December, when the Fed raised interest rates for the first time since the 2008 economic crisis.
Those interest rate hawks may want to check the GDPnow tool, run by the Atlanta Federal Reserve. From an original estimate of first quarter economic growth at 1.9%, it slipped to 1.4% last week, and 0.6% this week. Another research tool, the CME FedWatch tool, uses Federal Funds futures to predict Fed rate moves. At the end of the month, it gave only a 5% chance of an April rate hike. The odds don’t reach 50/50 until September, though these numbers change constantly.
Helicopter Money
The resounding failure quantitative easing, zero, and even negative interest rates has failed to raise inflation. After negative interest rates, which were supposed to be impossible, have failed to turn the European and Japanese economies around, the next step over the line is being discussed. Called “Helicopter Money,” the idea is to send checks directly to the public (perhaps as some sort of tax refund), or monetize Federal debt as a means to finance repairs to infrastructure. This is supposed to be a one-time event, if it is chosen. However, if the second option is chosen, it will be a replay of what happens every time the government gets ahold of the printing press. More and more money will get printed, to finance every Congressman’s pet “pork” projects, until the currency is so debased that we go into hyperinflation.
The Bank of International Settlements (BIS), called the “central bank of the central banks”, reprimanded the reckless behavior of central banks playing with negative interest rates. When New World Order entities, such as the BIS and International Monetary Fund, start criticizing your actions, you know that monetary policy has gone too far.
Brexit
The terror attacks in Brussels this month are strengthening the hand of the anti-EU side in Britain’s upcoming referendum on whether to remain in the EU or cut loose and go their own way. The “Stay” side is dominated by banking and industrial interests, while the “Leave” side is riding a populist wave of discontent over the flood of immigrants and the “encroachment” of EU laws superseding UK ones.
A “Brexit” will cause turmoil in markets on both sides of the Atlantic and be a huge headache for British companies doing business in Europe (i.e. most of them.) Proponents of leaving the EU say that the initial rough patch of breaking away will be worth the benefits later. While the two sides are running neck and neck right now, things will be certain to change before the June 23rd vote.
Dwindling Dollar
Even though the dollar has gotten temporary boosts this month (like hitting a two-week high on the hawkish Fedspeak in late March), the USD is having its worst month in 5½ years, hitting a 9-month low at the end of the month. This was hammered home by Yellen’s dovish speech on the 29th. Reuters went further, saying this is the dollar’s worst quarter since 2010.
On the Retail Front
Sales of the 2016 Silver Eagle bullion coin hit a year to date total of 14.8 million coins, as it seems set to make a run at another all-time annual record. The Perth Mint in Australia reported that it has had the best six months in its 117-year old history. Not only were coin and bar sales through the roof, but the Mint’s refinery processed 150 metric tons of gold and 300 metric tons of silver in that six months.
CoinWorld warns investors about a new wave of counterfeit PAMP Suisse one ounce gold bars. While the best protection against fakes is buying from a reputable precious metals distributor, a device like the Sigma Metalytics “Precious Metals Verifier” allows you to quickly test the purity of a coin and bar, even through the packaging.
Central bank gold action sees Russia, Kazakhstan, and China all adding to reserves again this month. Russia added 11.1 metric tons, for a total of 1,447 tons. Kazakhstan bought 2.7 tons, which was a 13.5% increase to their reserves, which now stand at 22.6 tons.
China’s gold reserves increased by 9.95 metric tons last month, as the big drain on foreign reserves continued. China has been selling dollars, bonds, and other currencies to fund intervention in the stock market and yuan currency market.
Market Buzz
Former Federal Reserve Chairman Alan Greenspan says negative rates are nonproductive and encourage misuse of capital. A drop in productivity is causing the current economic stagnation, he says, and calls on the U.S. to rein in entitlements to restore that productivity.
Bond King Bill Gross is on the same page: “The reality is this. Central bank polices consisting of QE’s and negative/artificially low interest rates must successfully reflate global economies or else. They are running out of time. Or else what? Or else markets and the capitalistic business models based upon them and priced for them will begin to go south. Capital gains and the expectations for future gains will become Giant Pandas – very rare and sort of inefficient at reproduction.”
Super investment firms Blackrock and Pimco are both warning clients that inflation will start picking up soon. According to them, oil prices will start rising as higher-cost producers are forced out of the market, which is the worst kind of inflation to have. Blackrock, which has $4.6 trillion under management, advises people “We like inflation-linked bonds and gold as diversifiers.”
Stan Drukenmiller is one of the most successful hedge fund managers in the world, and he’s betting big on gold, too. He has put 30% of his fund assets into the SPDER Gold Trust ETF.
The World Gold Council says that negative interest rates will likely boost demand for gold.
Speaking of gold, where is America’s gold going? According to SRSrocco Report, most of it is going to only four countries.
We know where Venezuela’s gold is going– Switzerland.
Jewelers and bullion dealers in Indiawent on strike March 1, after a surprise excise tax was levied on gold products. Negotiations with the government led to many jewelers returning to work, while others demanded something more than the words of a government official before ending their strike.
In a tale of the dangers of digital money, the Bangladesh central bank SWIFT account, which connects it to the global banking network, was hacked. This allowed criminals to make off with $100 million from the central bank’s account at New York Fed, which was then laundered through Philippine casinos. At first, the Bangladeshi Central Bank threatened to sue the NY Fed for the $100 million, but it later came out that the breach happened in Bangladesh.
Speaking of things happening at central banks that shouldn’t, the Fed is finally under investigation for being controlled by “Too Big To Fail” banks, like Goldman Sachs. Called regulatory capture, it means that the regulatory agency turns a blind eye to abuses of the businesses it is supposed to be monitoring, or shapes regulations to favor them.
In a move that is sparking a huge backlash, the Royal Mint has blocked redemption of legal tender collectible coins. Its position is that, even though they are legal tender coins, collectible coins are not released into circulation, so they aren’t “real” legal tender coins. The RM has instructed banks not to accept them. This isn’t a law passed by Parliament; this is something the Royal Mint decided on its own. This will probably lead to the collapse of the domestic commemorative coin market in Britain.
Looking Ahead
While no one really believes the Fed could possibly raise interest rates in April, a good non-farm payrolls report could make markets antsy. There is no FOMC meeting in May, so the next chance for a rate hike would be June.
April is also supposed to be the grand meeting of the world’s top oil producers (except the U.S.) to negotiate a freeze to output levels. There’s a snowball’s chance in Saudi Arabia of a production cut, and not much more of a chance for even a freeze. In any case, oil markets will react badly.
You get an extra 72 hours before you have to cough up your tribute to Uncle Sam this year, as Tax Day isn’t until April 18 this year. You can thank the District of Columbia’s celebration of Emancipation Day for the reprieve.
And finally, we have a story that may be evidence that the terrorists have won:
A man with multiple sclerosis was transferring money from his Chase Bank account to his dogwalker and he put the 9-year-old pitbull’s name, “Dash,” in the memo line. The bank not only stopped payment, thinking that the money was being sent to fund Daesh, they reported the man to the U.S. Treasury Department’s anti-terrorism division.
The Treasury Department flagged his account until he could “explain what Dash means.” Once he cleared up the confusion, the government unblocked the payment. Unfortunately, is seems that Mr. Francis has bought into the “happily give up our freedom to save us from the terrorists” line that the government uses for expanding the police state, saying “I think anything we can do to stop the terrorists and the funding of terrorists, let’s do it.”
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Letter Re: Solar Power
Hugh:
It seems straightforward to accumulate the beans, bullets, and band aids, and this site has been a tremendous help.
However, solar power seems formidable. Every article I read quickly devolves into talk of how to wire and link things, amps, voltage, et cetera. I am an older professional woman with no mechanical expertise, but I do know that electricity can be dangerous, and I hesitate to do these things myself.
It would be a tremendous help if someone could write an article listing simple plug-and-play systems that could be purchased from reputable companies. If they could do it by price points, it would be even better (e.g., if you have $1,000, buy this – and it will be enough to power these items). In addition, can these systems be left on at an unattended retreat or are they a fire hazard? – prepperdoc
Hugh Replies: Plug-n-play solar systems are expensive. There are things that have to be taken into account, which require technical expertise and is why solar installation is a thriving industry. You basically have two options:
- Use a plug-n-play system like Goal Zero or similar. You can get these systems from our advertisers, if you prefer to go that route:
Don’t be afraid to call them. Each of these companies will ask you questions to learn what your needs are and will make recommendations based on your specific issues. You can certainly tell them you heard about them on SurvivalBlog.
- Assemble your own system from components on Amazon or a local supplier. This method is the least expensive, but it is also where all those techie things like “how to wire”, “amps”, “voltage”, “mechanical mounts”, and other things come in. There is no way around it. If you want to save money, you have to learn these things to go this route.
The techie stuff must be taken into account, and you are either going to learn it yourself or pay someone else to do it for you, but it has to be done.
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Economics and Investing:
Worst Case Scenario = 73% Down From Here
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How Mainstream Economic Theories Regularly Miss The Mark
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Items from Professor Preponomics:
Professor Preponomics’ Reading Recommendation
Available on Amazon: Basic Economics: A Common Sense Guide to the Economy (5th Edition) by Thomas Sowell
US News
$10 Mil to End “Diaper Disparity” After Free Diaper Laws Fail Twice in Congress (Judicial Watch) Excerpt: “To get the ball rolling, the administration announced this month that it plans to spend $10 million to “test effective ways to get diapers to families in need and document the health improvements that result.” Because it’s unlikely that Congress will pass a law to accomplish this, Muñoz admits the administration is getting creative and using every tool it has to help solve this dire problem.”
State Department Hiring Interio Designers, Salaries Up to $141,000 (Washington Examiner) Excerpt: “The Division provides comprehensive interior design services to include programming, space planning, architectural finish specification and furniture for U.S. diplomatic missions worldwide…”
Obama’s Solar Socialism (Government Waste Fraud and Abuse) Excerpt: “Taxpayers have been bilked for billions of dollars for decades so politicians could funnel money into solar firms like Solyndra, which a new investigation by the Inspector General of the Department of Energy (DOE) confirms engaged in a “pattern of false and misleading assertions” to win a loan guarantee from DOE.”
Here’s Who Benefits from Worsening Puerto Rico’s Debt Crisis (The Federalist) Excerpt: “All the key players in the Puerto Rico debate are, to a greater or lesser degree, looking out for number one, but a solution that restores economic confidence and the ability of the island to become financially solvent should carry a good deal more weight than either concerns for the balance sheets of mega-consulting firms or the politics of the upcoming elections.”
International News
The Richest and Poorest Countries in the World (Visual Capitalist)
Weak Global Economy is Said to Threaten Government Finances (AP) Excerpted: “When growth is weak, governments collect less revenue and struggle to pay pensioners and meet all their debt payments.” These kinds of numbers mean we are not going to make good on these commitments….”
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SurvivalBlog and its editors are not paid investment counselors or advisers. Please see our Provisos page for details.
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Odds ‘n Sods:
A remake/spoof of the Simon & Garfunkle classic “The Sounds of Silence” has been posted on YouTube – Except this one is about the atrocities of Islam as they force their political system on you. “Sounds like Silence” – Watch it while you can – It didn’t make it very long on Facebook before being taken down. Warning: Very powerful video, but contains graphic images and some language. Sent in by RBS
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Questioning ‘gay’ lessons gets 4-year-old booted from preschool. Yet another reason to get your kids out of public schools (or liberal preschools). This kind of indoctrination can only lead to family trouble. – D.S.
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Trouble finding the finances to finish off those preps? Or maybe you’re just getting started? Top 10 Prepper Items You Can Find At A Garage Sale – Sent in by H.L.
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HUD Wants to Make Living in a Tiny House or RV Illegal – H.L.
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The US Airforce’s powerful new missile that doesn’t go boom . This weapon will have little effect against militaries with hardened electronics, but it could potentially have significant impact against smaller groups like ISIS…or constitutionalists. – A.S. Note: The article has an auto started video that has nothing to do with the subject other than just being housed in a cruise missile. Just stop the video and read the article.
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Hugh’s Quote of the Day:
“And David danced before the Lord with all his might; and David was girded with a linen ephod. 15 So David and all the house of Israel brought up the ark of the Lord with shouting, and with the sound of the trumpet.” – 2 Samuel 6:14-15 (KJV)