Notes for Sunday – January 10, 2016

January 10th, 1776 is the day that North Carolina Governor, Josiah Martin, issued a proclamation calling on the king’s loyal subjects to raise an armed force to combat the “rebels”. This ultimately led to Colonel Donald McLeod leading the men on an assault on the Patriots that ended with fifty of his men dead and 880 captured. The Patriots lost only two of their number. Also on this day in 1976 the song “Convoy” by C.W. McCall was the #1 song on the U.S. pop charts.

o o o

Note to our Readers and Advertisers: We are currently updating how we handle the advertising on the Blog. As we make the transition, there are a few bumps along the way. Please be patient with us as we work through the issues. Any ad that is not displaying in the ad bar on the right (or bottom for mobile users) can still be clicked on (the blue link) to get you to the advertiser’s site. We hope to have the issue worked out within the next 48 hours. As an aside, SurvivalBlog works hard at keeping the advertising from being obnoxious as you read the site. Please disable any AdBlock software as you view the site. The advertisers are paying for the bulk of the costs associated with the blog.



Guest Article: Federal Reserve’s “Net Worth” Collapses 33% in Two Weeks, by Simon Black (Sovereignman)

In case it weren’t completely obvious how completely screwed up the financial system is, please allow me to introduce Exhibit A: the Federal Reserve’s own balance sheet.

First, we need a quick accounting background, and stay with me, because this is important.

Think about your own finances. You, me, everyone… we all have assets and liabilities.

Your assets might be things like cash, your house, car, baseball card collection, et cetera.

And your liabilities are loans, credit card debt, et cetera.

The difference between the two can be thought of as your “net worth”. Hopefully, it’s positive, i.e. your assets exceed your liabilities.

In accounting, this concept of net worth is known as “equity”. A company like Apple that has a lot of assets but not a lot of debt has substantial equity.

(As an investor, I typically look for opportunities where I can buy a great business or its shares for less than its equity. But we’ll save that for another time.)

Banks, too, have assets and liabilities.

But while the balance of your savings account may be an asset for you, or the mortgage balance you owe to the bank is your liability, for the bank it’s actually reversed.

Your savings account balance is actually money that they OWE you.

So while your savings is an asset for you, for the bank it’s a liability.

Similarly, your loan balance might be your liability.

But for banks, the loans they make to customers are actually assets because they’re on the receiving end of the loan payments.

For a bank, net worth (known as a bank’s “capital”) is a massively important indication of its financial health.

Think about it– if a bank has a negative net worth, this means that it doesn’t have enough assets to repay its customer deposits.

This is how banking crises start. It’s precisely why Lehman Brothers (and a whole lot of other banks) went bust in 2008/2009. The banks’ liabilities exceeded their assets.

Conservative banks hold vast amounts of capital, i.e. have substantial net worth where the value of their assets drastically exceeds liabilities and customer deposits.

One way of looking at this is by measuring a bank’s capital as a percentage of its total assets. (Conservative banks have a high percentage.)

Let’s say a bank has $1000 in assets like cash and loans, and $200 in liabilities (customer deposits).

This means that the bank has $800 in capital, which constitutes 80% of its total assets.

In other words, the value of the bank’s assets can fall by 80%, and the bank would still be able to repay its depositors.

This is a huge margin of safety that is unfortunately almost unheard of in banking.

Right before the crisis, in fact, Lehman Brother’s capital was just 3% of its total assets.

And that leads me to central banks.

Just like regular banks and businesses, central banks also have assets and liabilities.

In the U.S., the Federal Reserve’s assets total $4.486 trillion, including more than $2 TRILLION in U.S. government debt.

The Fed also has total capital (i.e. net worth) of $39.5 billion.

That sounds like a lot. Until you realize that it constitutes just 0.88% of its total assets. Not even 1%!

This is a tiny, almost nonexistent level of capital at the Federal Reserve.

Put another way, the issuer of the United States dollar, the most widely used currency on the planet, and the central bank of the largest economy in the world, has almost no margin of safety.

This puts the entire global financial system at a tremendous level of risk.

Central banks can and do go bankrupt. It happened most notably in Iceland back in 2008, causing an epic currency crisis in that country.

So running the Fed’s balance sheet down to the nub like this is not exactly a consequence-free course of action.

But what’s really astonishing about all of this is how quickly the Fed’s balance sheet deteriorated. And why.

Just two weeks ago, the Fed’s total capital was nearly $59 billion. And even that wasn’t very much given the size of its balance sheet.

Today it’s $39.5. This is an incredible 33% drop in just two weeks!

Imagine your net worth collapsing by 33% in two weeks; it would probably be a huge personal crisis. Yet the Fed seems completely cool about it.

I did some digging and found out why this happened.

It turns out that Congress and the President passed a law last month called the Fixing America’s Surface Transportation (FAST) Act.

We’ve talked about this one before– the FAST Act is supposed to provide funding for America’s highway system.

But one of the provisions is that a U.S. citizen can have his passport revoked if the government believes in its sole discretion that he owes too much tax. Crazy.

And, buried deep within the nearly 500 pages of legislation is a neat little section demanding that Federal Reserve bank surpluses above a certain amount must be turned over to the United States Department of Treasury.

In other words, the U.S. government is so broke that they’re now confiscating assets from the Fed, putting the entire global financial system at even more risk.

It’s genius!

You just can’t make this stuff up. It’s so absurd it would be comical if it weren’t true.

So, yes, it should be completely obvious by now that there is a tremendous amount of risk in the system.

Governments are completely bankrupt. And even central banks now are being pushed into insolvency by the bankrupt governments they support.

This is not a story that has a happy ending. And whether the consequences arise today, tomorrow, or five years from now is irrelevant.

This is a major risk. And for any thinking, rational person paying attention, it’s imperative to have a Plan B.

Our goal is simple: To help you achieve personal liberty and financial prosperity no matter what happens.

Multiple times every week, we help over 100,000 Sovereign Man subscribers who are taking their family’s liberty and prosperity into their own hands with our free publication, Notes From The Field.

Activate your free subscription today, and get fresh intelligence delivered securely to your inbox as we travel the world discovering the biggest opportunities available to smart, enterprising individuals like you.

This article was published on The Sovereignman on January 8, 2016. Reposted with permission.



Letter Re: Hickok45

Google is a publicly traded company, acting in their own interests. Perhaps it is time to remind folks that there are alternatives to their search engine and e-mail service that are more respectful to your privacy:

  • Startpage.com for searches.
  • Startmail.com for e-mail.

For video content providers, consider running your own website and only mirror select videos onto social media, thereby minimizing your losses if and when they do decide to exercise their vast arbitrary powers. This is the strategy employed by other popular channels, such as the Corbett Report. –ER

Update: It appears that Hickock45’s channel is back up today. It may be a concerted effort by a few users to “report” him thus shutting the channel down, but at the least, it shows that left leaning Google is not your friend and many other Vloggers are scrambling for alternatives because they understand they may be at risk over someone else’s whim as well.



Economics and Investing:

46 Months Of Accelerating Deflation Mean Beijing Is Now Trapped – JFJ

o o o

Apple has dumped $100B in market value in past month – RBS

o o o

Items from Mr. Econocobas:

Study Finds Higher Minimum Wage Hurting Youth Employment – Not sure why they needed a study to realize this….

Puerto Rico Defaults on Debt Payments – Not sure how, but this news seemed largely ignored probably due to such market volatility

Items from Professor Preponomics:

US News

End Injustices Now, Not Later (Mises Institute) Excerpt: “We’ve been robbing from Peter to pay Paul, and Paul’s taken out a mortgage based on income from the theft. You don’t want Paul to lose his house, do you?”

If You Think Oil is Cheap in Dollars, It’s Even Cheaper in Gold (Market Watch) Excerpt: “Things could get worse before they get better, of course, and there is historical precedence for a longish spell before things get back to normal. On the flip side, that precedent was a public mania for stocks akin to the Roaring 20s. We don’t seem to have that level of enthusiasm at the moment.”

Rail Shipments Point to a Recession (Business Insider) Excerpt: “…the big ones got crushed: carloads of coal, the largest category – done in by the low price of U.S. natural gas emanating from the collapsing natural gas industry – plunged 27.9%; metallic ores, the second-largest category, plunged 39.1%; and petroleum and petroleum products, the third largest category, plunged 20.5%. The commodities rout is tearing into railroads with a vengeance!”

International News

World Could Faces Months of Chinese Market Aftershocks (Associated Press) Excerpt: “The latest trigger was currency jitters, but Thursday’s plunge in Chinese stocks was just one in a series of aftershocks from last year’s boom and bust that could shake markets for months to come.”

Brazil’s Economic and Financial Meltdown (National Review) Excerpt: “We shouldn’t be surprised by the collapse of Brazil. For years now the government has been growing faster than economic growth, which is a formula for disaster. And we shouldn’t be surprised that a country that models its labor laws on those of Mussolini’s Italy ends up in trouble.”

Iran to Receive Major Economic Windfall as Nuclear Deal Begins (Washington Free Beacon) Excerpt: “Kerry might as well have wired the money directly into the Revolutionary Guards’ bank accounts…”

Personal Economics and Household Finance

How You Can Save Your Family $6,700 This Year (Clark Howard) Excerpt: “…the real problem is that Americans are racking up so much credit card debt that they can’t make the payments fast enough to keep interest costs down – and that’s costing families a whole lot of money.”



Odds ‘n Sods:

The Islamic State’s suspected inroads into America. A map showing where Federal prosecutors have charged people with crimes in connection with the Islamic State. – G.P.

o o o

From our friends over at the Thoughts from Frank and Fern blog: On the Brink

o o o

Mike Williamson, SurvivalBlog’s Editor At Large wrote in: Why did they make them look like daleks? Crime-Fighting Robots Hitting The Streets In California. I can see legitimate observation and recon uses for this in reducing crime, as moving security cameras with interactive capability for victims. My concern is that someone will decide to equip them first with stun weapons, then with more lethal gear, initially remote, but eventually with on-board control.

o o o

SurvivalBlog reader RBS sent this in: Chinese Immigrant Turned Citizen Defies Obama Gun Grab: “I Will Never Be A Slave Again”

o o o

The Federal government is spending millions to arm agencies that don’t need guns. Why?! EPA, FDA stocking up on body armor during President Obama’s watch – G.P.



Hugh’s Quote of the Day:

“And when he was departed thence, he went into their synagogue: and, behold, there was a man which had his hand withered. And they asked him, saying, Is it lawful to heal on the sabbath days? that they might accuse him. And he said unto them, What man shall there be among you, that shall have one sheep, and if it fall into a pit on the sabbath day, will he not lay hold on it, and lift it out? How much then is a man better than a sheep? Wherefore it is lawful to do well on the sabbath days. Then saith he to the man, Stretch forth thine hand. And he stretched it forth; and it was restored whole, like as the other.” – Matthew 12:9-13 (KJV)



Notes for Saturday – January 09, 2016

On this day in 1776, writer Thomas Paine published his pamphlet “Common Sense,” setting forth his arguments in favor of American independence. Although little used today, pamphlets were an important medium for the spread of ideas in the 16th through 19th centuries.

o o o

Today, we present another entry for Round 62 of the SurvivalBlog non-fiction writing contest. The nearly $12,000 worth of prizes for this round include:

First Prize:

  1. 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),
  2. A Gunsite Academy Three Day Course Certificate that is good for any one, two, or three day course (a $1,195 value),
  3. 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,
  4. DRD Tactical is providing a 5.56 NATO QD Billet upper with a hammer forged, chromlined barrel and a hard case to go with your own AR lower. It will allow any standard AR type rifle to have 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),
  5. 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),
  6. Two cases of Mountain House freeze dried assorted entrees in #10 cans, courtesy of Ready Made Resources (a $350 value),
  7. 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),
  8. A $250 gift certificate good for any product from Sunflower Ammo,
  9. KellyKettleUSA.com is donating both an AquaBrick water filtration kit and a Stainless Medium Scout Kelly Kettle Complete Kit with a combined retail value of $304, and
  10. Two cases of meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value).

Second Prize:

  1. 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,
  2. A FloJak EarthStraw Code Red 100-foot well pump system (a $500 value), courtesy of FloJak.com,
  3. A transferable certificate for a two-day Ultimate Bug Out Course from Florida Firearms Training (a $400 value),
  4. A Model 175 Series Solar Generator provided by Quantum Harvest LLC (a $439 value),
  5. A Trekker IV™ Four-Person Emergency Kit from Emergency Essentials (a $250 value),
  6. A $200 gift certificate good towards any books published by PrepperPress.com,
  7. A pre-selected assortment of military surplus gear from CJL Enterprize (a $300 value),
  8. RepackBox is providing a $300 gift certificate to their site, and
  9. Safecastle is providing a package of 10 LifeStraws (a $200 value)

Third Prize:

  1. A Royal Berkey water filter, courtesy of Directive 21 (a $275 value),
  2. A $245 gift certificate from custom knifemaker Jon Kelly Designs, of Eureka, Montana,
  3. 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,
  4. Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy (a $185 retail value),
  5. Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security, LLC,
  6. Mayflower Trading is donating a $200 gift certificate for homesteading appliances,
  7. APEX Gun Parts is donating a $250 purchase credit,
  8. Montie Gear is donating a Precision Rest (a $249 value), and
  9. 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).

Round 62 ends on January 31st, so get busy writing and e-mail us your entry. Remember that there is a 1,500-word minimum, and that articles on practical “how to” skills for survival have an advantage in the judging.



What’s For Dinner?- Part 2, by J.R.

Sugars

The recommended storage amount for sugars is 60 pounds per person per year. Most people in the developed world at this time consume far more than 60 pounds annually. It is definitely far more than we should and what is best for our health. However, if you choose to store less for your family, be sure to increase the amounts of other foods you store to compensate for the loss in calories.

To give you a bit of perspective on sugar demand, here are some historical figures on per person sugar consumption in the developed world. In 1700, sugar consumption was about four pounds per year. In 1800, this amount had risen to 18 pounds per year. By 1900, it was 60 pounds per year. We now consume over 100 pounds of sugar per year.

The 60 pounds of sugar per person is what is used for baking and cooking. It does not include what you would use for preserving foods such as by canning or making jam. If you are including food preservation in your plan, you need to increase the amount of sugar you store accordingly.

Sugar is one of the easiest items to store. Because it does not deteriorate in quality or nutritional value, it is one of those items that does not need to be rotated and is not temperature sensitive. It does, however, still need to be protected from pests and from absorbing odors from nearby items.

There are several different forms of sugar to store. Personal preference is your guide here.

Sugar

We store only pure cane sugar, as opposed to beet sugar. If sugar is pure cane, it will be stated as such on the label. Otherwise, you may be sure that it is beet sugar. Those desiring to avoid GMO products may wish to know that 96% of the sugar beets raised in the U.S. is GMO. We also make sure that our brown sugar and powdered sugar are pure cane as well. It is best not to substitute powdered sugar for granulated in canning. Powdered sugar contains some cornstarch, and this will result in a cloudy product that some mistake for spoilage. Because of the high moisture content, brown sugar does not store well. Putting a slice of bread in an airtight container with the hard brown sugar will soften it in a few days.

Honey

Much has been written about adulterated honey being sold in this country, so I won’t go into that here. Be sure you are buying real honey for your family. Real honey will start to crystallize within a year or so of purchase; the adulterated stuff will not–ever. To liquefy solid honey, place the container in a pot of simmering water. Honey will store indefinitely. It also has trace minerals important to the body.

Other Sugars

Other forms of sugar you may wish to include in your storage to add variety to your diet include molasses, maple syrup, and corn syrup. (Karo syrup has no HFCS, last I checked; most of the other brands do have it.)

Sugar is easily stored in plastic buckets. It does not need an oxygen absorber. In fact, oxygen absorbers should never be added to sugar, or it will turn into a rock hard mess. Be aware that sugar is very heavy, and for ease in handling it should be stored in smaller buckets, probably nothing larger than 4-gallon buckets.

The best way to acquire your sugar supply is through loss leader sales at the grocery stores. The LDS Home Storage Center is usually a more expensive option, and you can’t be sure whether it is beet sugar or cane sugar.

Oils

Oils are an essential component of food storage, because this is where your fats come from. Fat is essential to life. It is critical to brain function. A diet low in fat will dumb you down pretty quickly.

The recommended storage amount is 20 pounds or 20 pints of oil per person per year. There are no set recommendations on what kinds of oils to store. That is entirely personal preference. All oils must be kept as cool as possible. Oils stored in glass or metal will have a longer shelf life than those stored in plastic. When I lived in the Midwest, where concern for earthquakes was non-existent, I stored all our oils in glass. Now that I live in an earthquake-prone area, I still choose to store most of my oils in glass. Most oils—vegetable, corn, canola, and peanut—have preservatives added to prevent rancidity. Olive oil and coconut oil usually do not have these preservatives.

Vegetable, Corn, and Canola Oils

Vegetable oil is soybean oil. Soybeans are almost entirely GMO, as are corn and canola. When I learned about this many years ago, I could not immediately replace all the less expensive vegetable oil in storage for our large family with higher quality oils. I kept the vegetable oils and slowly built up our supply of other oils. The now very old vegetable oil can be used to make oil candles or soap when that need arises.

Peanut oil is what I store for most of my baking and frying. It has preservatives, which I would rather avoid in my foods, but I have not as yet been able to find a peanut oil that does not.

Olive oil is another oil I store for some of my frying and for salad dressings.

Shortening is hydrogenated soybean oil, which I still want to avoid. I only keep one can in the house for making buttercream frosting for cookies and cakes.

Butter

Some just have to have it. Red Feather butter, though it has a great reputation for taste, is a pretty expensive option for many families. Ghee is also up there is price. There are several companies that offer freeze-dried butter. It doesn’t reconstitute perfectly, but the taste is acceptable. It just doesn’t have the right texture. The option oft promoted in prep circles is home canning of butter. Everyone acknowledges that the USDA cautions against such and warns of the risk of botulism, but they also say our grandmothers did it and nobody died. I have canned butter for my family– several dozen pints. In my experience, there is a rather substantial failure rate for the seals. But even when seals did not fail, many of the jars had an off smell and tasted kind of moldy. I decided the risks just weren’t worth it.

However, for some of us, life may not be worth living without butter. So what to do? Is there a palatable long term storage option?

Yes! Coconut oil is second in importance in this house only to peanut oil. Coconut oil has a melting point of 76 degrees Fahrenheit, so it feels “right” in your mouth. It passes for butter in every application, except for on popcorn. And even then it isn’t bad; it’s just that it lacks the buttery flavor. However, even that can be adjusted for. We have found that mixing freeze-dried butter powder into the coconut oil works perfectly—perfect taste and perfect texture. We keep a supply of butter in the freezer for short-term storage, but coconut oil and butter powder are our solution for long term.

Expanding the Basics

Peanut Butter

Because it is so high in fat, it is classed with the fats rather than with beans, and it is a great storage food. However, it really shouldn’t be calculated with the rest of the oils as part of your oil storage. It’s pretty hard to fry foods in it.

Mayonnaise

We make all our own mayonnaise here, using the following simple recipe: 2 tablespoons vinegar, 1 teaspoon dry mustard, 1 very fresh large egg, and 1 teaspoon salt. Blend these well in a blender or food processor. In a very thin stream, slowly add 1 cup oil. (We prefer peanut oil. Olive oil tends to be a little strong in flavor.) After all the oil has been added, continue blending for another minute or so. (Make sure to store sufficient additional oil to meet your needs for mayonnaise, and remember that mayonnaise is used in salad dressings and dips as well as on sandwiches.) Store in the refrigerator for up to three weeks.

Bacon Grease

Save all your bacon grease. If you accumulate more than you can currently incorporate in your diet, pressure can the excess in canning jars for long-term storage. Follow the directions for canning meat. Use vinegar on a paper towel to eliminate any grease on the rim of the jar.

Lard

Of course, you can buy lard in the grocery store, with all the added preservatives included. Or you can very easily render your own. (See the link at the end of the article for instructions.) Lard is the very best stuff for making biscuits and flaky pie crusts. It is hard to imagine today, but our forebears raised pigs as much for their fat as for their meat. If you have friends who raise their own pork, see if you can get some of the kidney fat for rendering your own. You definitely won’t regret it.

We store far beyond the minimums for oil here. Frying in oil can make almost any food more palatable. While those with dairy animals and pigs can produce butter and lard, everything else is much more difficult to DIY.

Salt

Salt is the easiest of the basics to gather and store immediately. You can pick up a year’s supply for a family of four for less than $20 on your way home from work. The minimum storage amounts range between eight and ten pounds per person per year. Now this may seem like an awful lot of salt. You may think that there is no way that you use that much table salt in a year. In normal circumstances you would be 100% correct. However, when you are cooking everything from scratch, you use substantially more salt. Err on the side of caution and store ten pounds per person.

Most people leave salt in its cardboard packaging. Most of the time this works just fine. However, we are preparing for emergencies and other extreme situations. In humid areas, even salt with anti-caking agents added can become hard. And in all areas, cardboard cartons do not protect salt from water damage.

So what is the best way to store salt? Store it in a two-gallon plastic bucket. Put as many salt cartons in the bucket as it will hold. Pour loose salt from other cartons to maximize the storage capacity of the bucket. Do not store salt in metal cans, as it will rust out the metal. Also bear in mind that salt is very heavy—a #10 can of wheat weighs about 5.8 lbs, while the same volume of salt weighs 9.6 lbs. You definitely do not want to store salt in anything larger than a two-gallon bucket. Salt does not ever go bad, unless contaminated by water. Accordingly, it does not need to be vacuum-packed or stored in mylar bags with oxygen absorbers, unless this is to protect it from water.

When it comes down to deciding what kind of salt to store, bear in mind that all salts are not created equal. Half of the salt in your storage should be iodized salt. Infants and small children require iodine for proper brain development. Iodine deficiency leads to cretinism in children and is the leading preventable cause of mental retardation. Iodine deficiency is also linked to hypothyroidism and goiter in adults. Salt is essential to proper nerve and muscle function and in the regulation of water in the body. Bear in mind that raw sea salt and rock salts lack sufficient iodine to prevent iodine deficiency diseases. Also, kosher salt is not iodized either.

With all this in mind, one may wonder why anyone would buy anything but iodized salt. But plain (or table) salt also has an important place in your home storage plan. Iodine retards the action of yeast in bread, and so plain salt is desired for bread-making. While the inhibition is not substantial, when it comes to making bread we sometimes need all the help we can get. Canning salt, which lacks the anti-caking agents found in plain and iodized salts, is preferred for canning.

Salt can be purchased in bulk bags at restaurant supply stores, but the savings is minimal and may not be worth the extra effort of storing in buckets. Because salt does not deteriorate, and because its nutritional value is not affected by heat or cold, it can be stored anywhere that is dry. Of course, it does not need to be rotated.

Ten pounds is the minimum amount to store for one year. However, if you are drying, curing, brining, or canning meats and vegetables, you should double the amount to twenty pounds per person. (Historical note: During the Utah War, the Mormon pioneers defended themselves admirably and severely delayed General Albert Sidney Johnston [later to die in the Civil War serving the south] and his army from entering the Salt Lake Valley. The pioneers harassed the army in the Wasatch Mountains, and in the process destroyed the army’s salt. The army then paid the Indians $5 per pound for salt.)



Letter: Law Enforcement Officers

Sirs,

When did “Peace Officers” become “Law Enforcement Officers”? Is not the purpose of police to keep the peace? Are laws merely meant to be the tools to enforce the peace? Why not call police “Baton, Pepper Spray, Taser Enforcement Officers”? If I spent a little time at it, I could probably come up with a list of peace keeping tools that would make a snappy acronym to rival “LEO”. I encourage people, particularly police, to read the principles of policing developed by Sir Robert Peel:

Principle 1 – “The basic mission for which the police exist is to prevent crime and disorder.”

Principle 2 – “The ability of the police to perform their duties is dependent upon public approval of police actions.”

Principle 3 – “Police must secure the willing co-operation of the public in voluntary observance of the law to be able to secure and maintain the respect of the public.”

Principle 4 – “The degree of co-operation of the public that can be secured diminishes proportionately to the necessity of the use of physical force.”

Principle 5 – “Police seek and preserve public favour not by catering to the public opinion but by constantly demonstrating absolute impartial service to the law.”

Principle 6 – “Police use physical force to the extent necessary to secure observance of the law or to restore order only when the exercise of persuasion, advice and warning is found to be insufficient.”

Principle 7 – “Police, at all times, should maintain a relationship with the public that gives reality to the historic tradition that the police are the public and the public are the police; the police being only members of the public who are paid to give full-time attention to duties which are incumbent on every citizen in the interests of community welfare and existence.”

Principle 8 – “Police should always direct their action strictly towards their functions and never appear to usurp the powers of the judiciary.”

Principle 9 – “The test of police efficiency is the absence of crime and disorder, not the visible evidence of police action in dealing with it.”

My point is that rather than enforcing the goals of maximal individual liberty throughout society by viewing themselves as Peace Officers, police may potentially become nothing more than tools of those in power who write the laws and those who influence (corrupt?) them. They will become instruments of tyranny rather than freedom. As citizens, we should pay particular attention to Principles 7 and 9 lest we enable tyranny through inattention to our duties as free citizens. – K.



Economics and Investing:

Items from Mr. Econocobas:

Dow Tumbles Nearly 400 Points on China Worries- Dow and S&P Off to Worse Start Ever – I would expect a relief rally very soon, otherwise I don’t see how we don’t get a serious intervention by world central banks.

Silver Seen Beating Gold as Ratio Rises to Near Historical Peaks– And we are not even talking about the historical average of around 16:1.

Most Americans are One Paycheck Away from the Street

Items from Professor Preponomics:

US News

Watchdog Says Government Agencies Ignore Billions in Savings (Taxpayers for Common Sense) Excerpt: “Agencies have a “too cavalier” attitude about findings by the government’s watchdog…”

Alcoa Plans to Close Largest US Aluminum Smelter Amid Tumbling Prices (Reuters) Excerpt: “…will permanently close its 269,000 tonne-per-year Warrick Operations smelter in Evansville, Indiana, by the end of first quarter, the latest in a string of U.S. smelter curtailments as producers struggle with tumbling prices.”

International News

Saudi Economy Implodes: Fascinating Solution Emerges. (Zero Hedge) Will this be the Saudi’s version of a Hail Mary? Excerpt: “Because reading between the lines, what this announcement really means is that Saudi Arabia is scrambling: for it to resort to partial privatization of its crown jewel, which is what selling stake in an IPO would mean, it suggests two things: the government is desperate to obtain liquidity at any price, and it means that if successful, the Saudi regime will be able to continue its strategy of crushing its high production cost competition for a long time thanks to the new funds.”

Will Saudi Aramco Go Public? (Business Insider) Excerpt: “There are any number of reasons why Aramco would go public, which range from encouraging investment in the Saudi stock market to bringing some limited transparency to a notoriously opaque company. But the biggest reason just might be revenue generation.”

Heavy Canadian Crude Falls to $19.81 per Barrel (Contra Corner) Excerpt: “A deepening oil market slump is adding fresh pain for producers of the world’s cheapest crude, raising the prospect that more production will be curtailed.”

Gloom Hangs Over China’s Economy Amid Market Turmoil (Wall Street Journal) Excerpt: “Everyone thinks this will be a very troubled year…”

Here’s How China’s Yuan Drives the Global Sell-Off (Market Watch) Excerpt: “The yuan is China’s currency, but it’s the world’s problem.”

Personal Economics and Household Finance

Why You Should Limit Car Loans to 42 Months (Clark Howard) Suggestion… Own your car. Maintain it properly. Drive it for as close to forever as you can! Spoiler Alert: “If your payments per month are too high to knock out the loan in 42 months, you’re buying more car than you can afford. Forget about those 60 month and 72 month loans that people love to do.”



Odds ‘n Sods:

Computers as judge, jury, and executioner – The risks — and benefits — of letting algorithms judge us. We aren’t to be judged, so we are algorithmed. – T.Z.

o o o

Doctors Urge California Residents “Leave Now…While You Can” As Gas Leak Fears Grow – Interestingly enough, I have some contacts in Texas that are telling me that this leak is small potatoes. There are apparently oil fields that have long had unstoppable leaks much larger than the one in California.

o o o

Denver Science Museum Reverses Course on Concealed Carry – T.P.
“The new policy quietly went into effect last December, in time for the holiday season. The museum’s board of trustees decided to reexamine their concealed-carry ban after the November attacks in Paris, and the following San Bernardino shootings cemented their change of position.”

o o o

Hickok45’s YouTube Account Terminated by Google – T.J.
Update: The account was terminated on 1/6/16 and was reinstated later in the day. Today, it shows terminated again. Either Google is being psychotic in their application of policies or there is a concerted effort by YouTubers to report the channel. A measured response by those who support the family friendly gun channel might be to refuse to purchase YouTube Red and ensure that AdBlock is turned on when you visit YouTube until they correct their error.

o o o

Finnish Government Condemns ‘Extremist’ Anti-Migrant Street Patrols – In Europe, there is a fundamental problem in understanding even the natural rights of humans to defend one’s self. I am most concerned [dismayed] with the highlighted phrase of Minister Orpo, “Volunteers have no right to use force.” Contrast that ‘official’s governmental statement’ with this from a participant: “Attacking is not part of our principles, only defense. And everyone has the right to defend themselves if we are attacked. We defend ourselves and call the police…” – D.S.



Hugh’s Quote of the Day:

“Thine heart was lifted up because of thy beauty, thou hast corrupted thy wisdom by reason of thy brightness: I will cast thee to the ground, I will lay thee before kings, that they may behold thee.” Ezekiel 28:17 (KJV)



Notes for Friday – January 08, 2016

On this day, in 1835, the U.S. National Debt reached zero for the first and only time. This is also the birthday of the late Algis Budrys (born 1931, died June 9, 2008). He was the Lithuanian-American science fiction author who wrote the classic survivalist novel Some Will Not Die.

o o o

An ongoing financial crash…war looms on the horizon…tyranny at home…feeling like you need a bit more long-term food storage? Ready Made Resources has a sale on Mountain House cans with savings from 25-40%!

o o o

Today, we present another entry for Round 62 of the SurvivalBlog non-fiction writing contest. The nearly $12,000 worth of prizes for this round include:

First Prize:

  1. 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),
  2. A Gunsite Academy Three Day Course Certificate that is good for any one, two, or three day course (a $1,195 value),
  3. 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,
  4. 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 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),
  5. 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),
  6. Two cases of Mountain House freeze dried assorted entrees in #10 cans, courtesy of Ready Made Resources (a $350 value),
  7. 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),
  8. A $250 gift certificate good for any product from Sunflower Ammo,
  9. KellyKettleUSA.com is donating both an AquaBrick water filtration kit and a Stainless Medium Scout Kelly Kettle Complete Kit with a combined retail value of $304, and
  10. Two cases of meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value).

Second Prize:

  1. 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,
  2. A FloJak EarthStraw Code Red 100-foot well pump system (a $500 value), courtesy of FloJak.com,
  3. A transferable certificate for a two-day Ultimate Bug Out Course from Florida Firearms Training (a $400 value),
  4. A Model 175 Series Solar Generator provided by Quantum Harvest LLC (a $439 value),
  5. A Trekker IV™ Four-Person Emergency Kit from Emergency Essentials (a $250 value),
  6. A $200 gift certificate good towards any books published by PrepperPress.com,
  7. A pre-selected assortment of military surplus gear from CJL Enterprize (a $300 value),
  8. RepackBox is providing a $300 gift certificate to their site, and
  9. Safecastle is providing a package of 10 LifeStraws (a $200 value)

Third Prize:

  1. A Royal Berkey water filter, courtesy of Directive 21 (a $275 value),
  2. A $245 gift certificate from custom knifemaker Jon Kelly Designs, of Eureka, Montana,
  3. 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,
  4. Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy (a $185 retail value),
  5. Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security, LLC,
  6. Mayflower Trading is donating a $200 gift certificate for homesteading appliances,
  7. APEX Gun Parts is donating a $250 purchase credit,
  8. Montie Gear is donating a Precision Rest (a $249 value), and
  9. 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).

Round 62 ends on January 31st, so get busy writing and e-mail us your entry. Remember that there is a 1,500-word minimum, and that articles on practical “how to” skills for survival have an advantage in the judging.



What’s For Dinner?- Part 1, by J.R.

I tell my family that those are the three most dreaded words in the English language. At the same time, I often think about how very difficult life is going to become when most women will not be able to answer that question for their families. While those who are preparing for complete collapse of the economy and our society may feel they have the situation covered, the reality is that the vast majority of preppers, at least those I have conversed with and observed, do not. The reasons vary. For most, it is lack of knowledge of what foods should be stored in what quantities. For some it is normalcy bias—life can’t possibly be bad for that long, so I don’t need to store much or worry about a varied diet. For others it boils down to the mistaken belief that if they and theirs are hungry enough, they’ll be content to eat whatever they have. This article is not focused on correcting a person’s normalcy bias. I will, however, address the other two widely held beliefs I have observed among friends, family, and mere acquaintances and as one who taught food storage classes over the years.

When it comes to food storage, I have observed that most people fall into one of two camps. The first is composed of people who store primarily the long-term basics of grains, beans, oils, salt, and sugar—a plan that resembles to varying degrees what the Church of Jesus Christ of Latter-day Saints (LDS) has counseled their members to store. It is the most economical way to stockpile the minimum emergency storage. The second group is comprised of people who store primarily what I call the “expanded storage”. This storage provides much more variety and therefore requires more attention to record-keeping and rotation. Both storage plans satisfy the minimum number of calories for individuals who are not stressed and physically exerting themselves, but we are not planning for a life of ease when TEOTWAWKI hits. If we want our family to thrive in the hard times, we really need to have a comprehensive storage of the long-term basics as well as the expanded storage.

THE BASICS

Let’s begin with the bare basics using lists of the essential long-term storage foods put forth by the LDS. I use their lists because the LDS have a long history of counseling their members to be prepared for uncertain times and have done the research on what staples to store and in what quantities.

These amounts will provide 2000 calories per day– the minimum for survival– for one year. For comparison, you can go to any of a number of food storage companies and see that they offer “year’s supply” food packages that provide between 1200 and 2000 calories per day. This is the minimum number of calories. Please keep in mind that when the body is stressed, as most people will be when TEOTWAWKI hits, the body needs more calories. When we are cold, we need more. When we are working hard, we need a whole lot more. (Can you imagine telling your husband or teenage sons who have been at hard labor all day that they are limited to 2000 calories?) This is not the time to decide to lose that extra weight. That will come regardless. A decreased calorie intake will result in a decreased ability to think. It will also result in a decrease in body heat generated and an increased need for more layers of clothing and blankets.

List A: 300 pounds grains, 75 lbs dry milk, 60 lbs beans, 60 lbs sugar, 20 lbs oil, 8 lbs salt.

List B: 400 pounds grains, 20 lbs dry milk, 60 lbs beans, 60 lbs sugar, 20 lbs oil, 10 lbs salt.

These two lists provide 2000 calories per day for one year. List A is for children and pregnant and nursing women who need the extra calcium and vitamins for proper development. List B is for the rest of the people. You will note the differences are in the recommended storage amounts for grains, dry milk, and salt. List A has more calories and calcium from the dry milk, and less from grains. List A also needs less salt due to the lower grain amount.

Now that you know what you need to store in what amounts, let’s discuss each of these staple items in detail so that you can make the most informed decisions for your family’s storage program.

Grains

Grains are the basis for most food storage programs. Calorie-wise, they provide the biggest bang for the buck. Whole grains are recommended, not only due to their higher nutritional value but also to their generally longer storage life, the primary exception being rice. (White rice has a much longer shelf life than brown.) The LDS church advocates a minimum of 400 pounds per year (with the complementary 20 pounds of dry milk) for adults or 300 pounds per year for children and nursing and pregnant women (with the complementary 75 pounds of dry milk). Wheat and milk have all nine essential amino acids for making a complete protein. There is no recommendation for how much to store for each kind of grain. That is personal preference. In our family, wheat comprises about 70% of our grain storage, with pasta, rice, oats, and popcorn in about equal proportions for the balance.

Wheat

Wheat has been advocated as the best choice for food storage in the United States primarily due to the fact that it is what we eat in this country but also due to the fact that wheat and milk combined (in the same meal) provide all the essential amino acids for protein.

There are four major types of wheat– hard red, hard white, soft white, and durum.

Hard red wheat is what our pioneer ancestors raised for centuries. Kept cool and dry, it has a long shelf life. The flour is slightly darker, the grain itself a little bitter. According to Chef Brad of Fusion Grain Cooking, hard red wheat is an acid-based grain. It is this acidity that causes some people digestive problems. Hard red wheat is only very slightly more nutritious than hard white wheat. Hard red wheat was all that was available to me when I began my long-term storage program over thirty years ago, and it was acceptable because it was the only option. However, with the advent of hard white wheat, hard white is all I will buy. I can’t recommend it enough.

Hard white wheat was developed from crossing hard red wheat and soft white wheat and selecting for the desirable traits of both. It is very slightly less nutritious than hard red wheat. As an alkaline-based grain, it is easier for most people to digest. Hard white wheat flour bakes into perfectly light loaves of 100% whole wheat bread. It makes delicious cookies. And because it lacks the bitterness of hard red wheat, you can use less sweetener than 100% whole wheat recipes normally call for.

Soft white wheat has a shorter shelf life due to its higher moisture content. It is prized for pastries, pasta, cakes, and crackers.

Durum wheat is most often used for making pasta.

Wheat is the most versatile of the grains. Not only can it be ground into flour, but the berries, whole or cracked, can be cooked into a cereal, boiled and used to extend hamburger, and sprouted to provide a vitamin C source when there are no other options.

Consider also storing some wheat to sprout and feed to chickens. Sprouted wheat contains small amounts of vitamins A, B, C, and E not found in whole grain bread.

For maximum nutritional value, whole wheat flour should be used immediately after grinding. Otherwise, store freshly ground wheat in the freezer until ready to use.

White flour (which has had the bran, the oils, and most of the nutrients removed) has a shelf life of 1-2 years. I store only 25-50 lbs, just enough to keep the family pastry chef happy.

Rice

Rice and beans also make a complete protein. Brown rice is high in oils and has a shelf life of about six months. For this reason, it is not recommended for inclusion in your home storage program. White rice, on the other hand, has a 25-30 year shelf life. It is also a good choice for extending your supply of dog food. You can also make your own instant rice by cooking the rice fully and then dehydrating it. To prepare, do just as you would for commercially prepared instant rice.

Oats

The two main choices with regard to oats are rolled or quick. Rolled oats have a longer shelf life than quick oats, but for most people the choice comes down to personal preference. In this house I prefer quick; my husband prefers rolled, so we store both.

Popcorn

We hope popcorn will only be used for snacking, but it may also be our emergency food on those days when dinner gets a bit overdone or a recipe goes horribly wrong. Some preppers advocate grinding popcorn into flour for cornbread. It makes a gritty cornbread. If you like grit, great. If not, store dent corn for this purpose instead.

Dent Corn

Dent corn is what you want for grinding into cornmeal to make corn bread. Dent corn is also what you would use for making the flour for corn tortillas and masa; however, you need to add lime in a process known as nixtamalization.

Pasta

Pasta adds variety to your diet. It has a shelf life of about eight years.

Even the most careful of food storage practitioners will occasionally find that some of their grain has been compromised. Fortunately, unless it has become moldy, it does not have to be wasted. It can be fed directly to livestock, sprouted and fed to livestock, or grown in the garden and then tilled into the soil for a green manure.

Of all the food groups, it is most important to become accustomed to eating wheat now but gradually. Some people need time to make the transition, or they will experience intestinal discomfort.

As of this writing, wheat can be obtained most inexpensively through the LDS Home Storage Center (link at the end of this article), for about $7.00 for 25 lbs. They carry hard red and hard white. If your local Wal-Mart doesn’t stock bulk bags of wheat, they can be ordered in for about $14 for 25 lbs.

Loss leaders at grocery stores are a better option for rice and pasta. Dent corn can be purchased from Honeyville Grain. Oats are most likely least expensive at the LDS Home Storage Center.

To prepare all grains for storage, place them in the freezer for at least 72 hours to kill any bugs. Remove from the freezer and let come to room temperature before putting into buckets or mylar bags. If you are using oxygen absorbers, you can skip the freezing step.

All grains should be stored in a cool, dry place, preferably below 60 degrees Fahrenheit.

Beans

The minimum recommended storage amount is 60 pounds of dry beans (not green beans, not commercially canned) per person per year. Beans are high in protein and low in fat, and are a good source of many trace minerals. It does not matter what kinds of beans you store—white, pink, pinto, red, kidney, black, lima, garbanzo, lentils, et cetera. In this house we store only what we really like. The chief cook and bottle washer here is of Mexican descent, so we have a lot of pinto beans. We also store some black beans, some white, and a few pink and garbanzo.

While most of us think of beans as a side dish or component of soup, they can actually be used in a wide variety of recipes. Beans can be sprouted. Mung beans are especially suited for this. Beans can also be ground into flour using a grain mill. This flour can be used instead of wheat flour or cornstarch in thickening soups.

Bean puree is also advocated for use in baking as a way of substituting for oil in baking and boosting the nutritional value of sweets. I’ve read rave reviews from people praising the use of bean puree in chocolate chip cookies and cakes. In the interest of research and providing my classes with samples, I have made some of these recipes. Using the full amount of bean puree recommended results in a very heavy product. Small children might be fooled; I don’t know, as I didn’t have any around at the time to offer samples to. My older children and teens were not fooled. When I used half of the recommended amounts of bean flour, most people said the result was tolerable but not desirable. Basically, they’d rather just do without. If you want to give this a try, here are the suggestions on how to go about this. For bean puree to substitute for oil in baking, mash beans with enough water to make a puree. To substitute for butter in baking, mash cooked, drained beans into a paste. Substitute in a 1:1 ratio, meaning that if your recipe calls for one cup of oil or butter, use one cup of pureed or mashed beans instead. White beans are recommended as being the best to substitute in baking.

Because dry beans require a long time to cook (and will thus require a lot of fuel in a grid-down situation), I always keep a good supply of beans that I have pressure canned at home. Dry beans are among the easiest foods to can. Consult your Ball Blue Book (the exact title has changed over the years, and the current edition is no longer blue, but usually the title includes Ball Blue Book, and that is how it will be referred to in this article) for exact directions. Basically you soak the beans overnight, rinse in the morning, add the appropriate amount to your jar, add salt and boiling water, and process according to instructions with your pressure canner. There are also several websites that advocate the canning of beans that have not been presoaked, i.e., dry beans are put into the jar, salt and boiling water are added, and then the beans are canned under pressure. This method is not USDA-approved, which may not matter to you; I have never seen any reasons offered as to why this is the case. However, I and others who have tried this method have noted a much higher seal failure rate that we can only attribute to the beans being unsoaked.

For many people beans are not a favorite food storage item. This is not due to the eating of the beans, but rather what happens afterwards. Numerous remedies are suggested for this problem, but the fact of the matter is that people who are not accustomed to eating beans on a regular basis lack the proper intestinal flora to digest beans properly. Once you start eating beans regularly, any problems with gas should disappear entirely.

Beans are very sensitive to heat and should be stored in conditions as cool as possible. Beans exposed to higher temperatures become tough, take longer to soak, and longer to cook. Unfortunately, we sometimes have beans that won’t soften with cooking. There are several ways to address this problem. First, add acidic foods such as molasses, tomatoes, and vinegar near the end of the cooking time as these items tend to toughen bean skins. For the same reason, salt should not be added until just before serving. Second, hard water may cause hard beans. If the cooked beans are still not soft, try adding ¼ teaspoon baking soda to soften the beans. If this still doesn’t work, there is yet another remedy to try, but it won’t work for tonight’s dinner. Try freezing the beans. As the water in the beans freezes, it will break down the cell walls to soften the beans. If that still doesn’t work, pressure cooking or canning the beans almost always will. And if that doesn’t work, the beans can still be ground in a mill and the resulting flour used in soups. However, bear in mind that the increasing toughness in the beans suggests a corresponding decrease in nutritional value.

The LDS Home Storage Center sells a few varieties of beans (white, pinto, and black) in bulk bags as well as #10 cans. The HSC also sells dehydrated refried beans. While I know of a few people who have been happy with the product, I have not, and therefore I cannot recommend it. (Perhaps it is my heritage coming through, and I’m too picky about the consistency, or perhaps my beans were old and tough.) The prices for the bulk bags are comparable to grocery stores’ sale prices.