Blueprint for Rebuilding- Part 1, by GRC

Timelines differ, and predictions of what causes mayhem differ. One thing we all agree on is that the time to prepare grows short, not time as we modern Westerners understand it, after all our civilization was built and rebuilt over the course of 2000 plus years, but the expiration date is surely fast approaching. Each day brings thanksgiving mixed with surprise that the thin veneer of our existence has lasted another sunrise. And while those who prepare for an uncertain tomorrow welcome the opportunity to tick another item off the to-do list, the rest of the world laughs at such plans. “It hasn’t happened yet, see? Told you that you were afraid of nothing!,” goes the taunt of the urban grasshopper.

Doubt creeps in. We wonder, “Am I wrong? Maybe everyone else is right. I devote time and resources to protecting my interests, and yet folly I know to be unsustainable happily carries on.” Millions and billions of dollars slosh untethered around the halls of government[1]. Morals are not merely ignored but openly taunted[2]. Our once great culture, that which formed the backbone of the greatest empire the world has ever known, now indoctrinates children into mocking the beliefs of their grandparents. Schools were once represented by a red, white, and blue banner flying proudly at the front door; now the very idea of civic pride insists you sacrifice your own beliefs for the sake of another’s impulses[3].

So the prepared waver, if ever so slightly. Yet, we have the benefit of history, do we not? History operates in epochs, not in quarters or seasons. Perhaps we shall never see the “Great Reset” in our lifetimes. We only prefer the pain to be on our shoulders instead of future generations. There will be no joy in proving our foresight and no glee in redemption of beliefs. The facts are in plain sight, for anyone to draw the same conclusions. Unlike others we are more than willing to provide details of our research, to help others learn. So considering our wish for the success of all, it is right we create our own blueprint for rebuilding, not just for ourselves but also for future generations, a reference for those ignorant of the cycles present in human history. Time is of the essence; the sand of the hourglass is quickly sifting.

Answering the Question

What will this “Reset” look like? Multiple threats exist, but the following three categories capture most potential causes:

  • Electronic (grid overload, EMP, sabotage)
  • Economic (excessive debt, runaway inflation, industrial collapse, war)
  • Environmental (solar irregularities, drought, disease, earthquake/volcano, impact events)

The prepared community argues which trigger will provide the ultimate spark, almost as though cheering on a sports team or debating which translation of the Bible is most accurate. Urgency demands that we avoid a rehash of the arguments or lobby one side vs. the other. The ultimate cause at this point holds no relevance to those who are prepared. Following, you will not find specific tips on products needed for any of these catastrophes. Each person prepares in their own best way, and certainly there are a multitude of fine resources from which to reference specific tactics and equipment.

Instead, this paper puts forward a question posed by historically illiterate Political Science professors all over the world every semester– a question that can frame our vision of what might heal a wounded world. Of course, the professors lift it from Hume’s A Treatise of Human Nature, but students don’t know that at the time and few recall it until exposed to the idea of thinking beyond tomorrow.

What Ought To Be?

There it is, four words summing up the very purpose of governmental, economic, and religious pursuits. Four words followed by quite an important punctuation symbol– the question mark– leaving open your personal take on a simple question. For with seven billion souls on this planet, there will certainly be seven billion interpretations, perhaps more because so few people seem to believe in absolutes any more.

What does a centuries old philosophy question have to do with surviving an imminent apocalypse? Because even that day of reckoning too shall pass. Once we have bugged out or hunkered down, once we have banded together or gone solo, and once we have consumed our last hard-put provision, we will need to emerge once again to interact with our fellow man in a way that does not include raiding and pillaging, or even isolation. For that is not who we were made to be.

Nothing that tests us will be new to the human race. We are descendants of people who suffered massive historical resets. The Black Death[4], the Thirty Years War[5], the Potato Famine, and the world wars nearly erased entire peoples. I’m sure, as a student of history, you could name several more. Whole areas and populations were devastated in disasters unforeseen by most. In fact, even those who may have predicted an unraveling would not have guessed the exact time or cause. Few of the prescient remained unsurprised at the scale of devastation from their predicted events.

Yet there were always those who outlasted the fire, just as in our own future Reset there will be those who endure. Your direct ancestors did; otherwise, you would not be here now. Will that be you? Pray that it is so, for humanity will need a multitude of ants to help any remaining grasshoppers, not just in resources but also knowledge. The point being that just having enough to eat after hard times fall won’t be sufficient. Without a blueprint, chaos follows calamity[6]. The goal should be to prepare for not just sustenance but for revival.

Examples to Navigate By

The question returns…What ought to be?…not the day after, or the month after, or even the year after disaster. What does a new civilization look like? Hopefully it’s one crafted by those with the foresight to recognize we are all part of a larger timeline. Hedonism, whatever your religious beliefs (or lack thereof), is not a foundation. Debauchery cannot be the base for progress.

Just as the enemies of freedom and personal determination possess prefabricated plans to roll out in times of crisis, let us too form our own. The Patriot Act, for whatever good intentions, was a labyrinth of unintended consequences. Regardless of speeches and floor debate, that bill was crafted years before 9/11 occurred, sitting patiently for the right time to be unveiled[9]. One could easily provide evidence for any such legislation or executive order, passed in the passion of a moment, used to further agendas well purposed or otherwise. Lawmakers and law interpreters earn their daily bread by creating simultaneous problems and solutions, most schemed and enacted while we remain distracted at work or home overwhelmed by the energy needed just to tread water in today’s life.

So let us too make plans, a well-crafted blueprint to build a shining city on the hill, not to further political goals or plans to deceive. True patriots haven’t the slightest interest in ruling the affairs of others, so long as they don’t interfere with their own. This blueprint makes plans to return to self-determination in a community setting. It’s a small town where a person can hang a shingle without onerous oversight, where children walk safely around the neighborhood, their only fear being what chore list might await them when they return home. It’s where our old folks sit comfortably on their front porch and where those who produce the tangible goods of a society are respected.

Look to the turn of the twentieth century rural America as a guide. Self-sufficiency, hard work, and an understanding of the land raised a generation able to withstand the Great Depression and a great war engulfing the entire planet[7]. Small town America was no myth. You can still see the fossils proving its existence even today.

Wander the streets of a fading Midwestern farm town. Find an old man in denim overalls before they are all gone. Ask him, “Sir, what business used to be in this building?” He will look at the decaying red brick walls and give you the history. He’ll say, “a doctor’s office” or it was a meat shop, perhaps. He will point to hardware stores or more recently appliance depots. All are now closed. He’ll be happy to show you where the opera house was; yes, those were prevalent in small town America[30]. You already know the stereotype of the uncultured rube is just that. These were a people who valued the arts in their own way. Education of children was paramount; simply try to pass an 8th grade graduation test from the time period and find yourself humbled[8].

They were a busy folk, cutting timber, digging coal, and building farms. Home time was spent nurturing personal gardens and livestock. Even those considered townsfolk tended vegetables instead of turf. Religion was exhibited more than displayed. Reading was treasured. Despite little or no government intervention, or perhaps as a result, violent crime against the innocent was scarce.

What happened to this legitimately great society? That is a topic for another time and a spirited debate. Clearly not all was perfect with these people, but as we look to eras to emulate in the years following our own trials let us begin here.

How do we get there? What ought to be? The world of Henry Ford and the Wright Brothers didn’t happen by accident. Advances in innovation, technology, and education were fostered by having sufficient supplies all year long. Long-term planning prevented short-term distraction. Food, of course, was their primary need, along with fuel and security. Indeed, our needs will be the same.

Sowing Seeds of Success

How will you satisfy those needs? How will you stay provisioned, warm and safe in the darkest days after a catastrophic event? After all, no great new world can be built without the survival of those possessing the cornerstone. Let us back up a moment to discuss plans to help ourselves before a time of despair. A blueprint that will translate into a head start in a post-Reset world.

Early twentieth century Americans were not easily taken advantage of. We’ve established they were well educated in their own way and quite more sophisticated then their east coast countrymen first believed. In negotiating matters of business, rural agrarians banded together to form cooperatives[14] to achieve buying power with suppliers. Also, producers needed to sell grain and livestock in a manner that achieved fair pricing. The cooperative form of enterprise best suited this purpose, allowing each family the chance to keep their enterprise and their independence. The fruits of their organizational labor are still seen across the country side, represented by the giant silos used to bunch grain together and transport to city mills. A unique way your cooperative can use these facilities will be discussed later in this paper.

A way to establish community right now, and perhaps rebuild a local economy visibly draining away, is to return to our cooperative roots. Contrary to belief of some, this is not antithetical to truly free markets. Cooperatives, instead, create a more personal and community-focused form of the corporation, one that still looks out for the shareholders involved, except that the vested parties are actual producers themselves and not financiers. Three forms of potentially useful cooperatives jump out when pressure-tested against both pre- and post-Reset scenarios:

  • Biofuel
  • Garden
  • Security

Fuels

We already wondered how we might keep our community warm after outside sources fail, so let us continue now by discussing the first bullet point, biofuel. The concept of a biofuel cooperative is not revolutionary; many have already sprouted up around the world[17]. Take this a step further, not just as an investment in one large facility in a community, but in several smaller refineries actually on personal property. The economics of these types of projects are improving. More importantly, this is not just an exercise in currency creation. If local dollars are retained in the community, i.e. fuel produced locally instead of overseas, a new equation for being economically viable must be considered[28].

A cooperative producing its own fuel can provide heat, electricity via generator, and transportation. Micro biofuel refineries have advanced dramatically over the past few years[15], with many universities acting as resources for cooperatives to begin production[16]. Relationships between your cooperative and local diesel mechanics will be an important asset, both now and in the future. Diesel engines are easily converted to biofuels[18] created by your cooperative, which can power bulldozers and tractors to help reinforce secure locations and larger scale gardening and farming[19]. The point of the cooperative is to spread the cost of investment, which includes labor as well as money. Find experienced mechanics who enjoy new projects as their schedule allows. Many are small business owners who could see the potential economic benefit in the cooperative’s future activities. The ideal candidates will be those who worked on machinery before it became totally dominated by computers.

Food

While warmth and fuel are very important to the future success of your community, successful farming is an immediate need. Gardening is the most personal form of farming. Chances are you garden now, not for profit though that is a happy sideline to many. Farming provides a lifestyle to some, but ultimately it is seen as a profession for securing currency. Truly, many farmers today would be at a loss to feed themselves without the benefit of the grocery store. They are specialists focusing on that which provides the maximum return per acre to satisfy outside landlords or investors[20]. There is nothing wrong with this as a 21st century business model, but understand that the term “farmer” was rarely used one hundred years ago in the context we use the word now. If you asked the elder gentleman in our earlier example, he would say that his family didn’t farm to earn a living; it was just who they were. We will still need specialists in the new world. However, each community member must learn to provide the bulk of their own food either through toil or trade.

Achieving critical mass for the success of our cooperatives, locally produced fuels allow the community to greatly improve their grain production with diesel-powered equipment. Excess grain production allows the cooperative to provide for basic needs plus devote the surplus for biofuel production. Thus begins the virtuous cycle needed to create a sustainable local economy[21]. Consider creating a local currency now to exchange locally produced goods, just make sure it is always backed by something tangible[22]. Remember, a closed loop cannot be “cut off” in any consequential way. Food is the ultimate currency; warmth is the ultimate luxury. Even pre-Reset, that may be all the economy a community truly needs.

References


[1]Congress Passes 1.1 Trillion Dollar Spending Bill http://politics.nytimes.com/congress/votes/113/house/2/563


[2]America’s Accelerating Decay http://www.nationalreview.com/article/416543/americas-decay-speeding


[3]http://www.breitbart.com/big-government/2015/12/04/planned-parenthood-joins-lgbt-groups-push-political-agenda-schools/


[4]Social and Economic Effects of the Plague http://www.brown.edu/Departments/Italian_Studies/dweb/plague/effects/social.php


[5]The Empire after the Thirty Years War https://europeanhistory.boisestate.edu/reformation/germany/after30yw.shtml


[6]A City of Despair and Lawlessness http://www.washingtonpost.com/wp-dyn/content/article/2005/09/01/AR2005090100533.html


[7]Character Lessons From the Greatest Generation http://www.ucg.org/character


[8]No, You’re Probably Not Smarter Than a 1912-Era 8th Grader http://www.smithsonianmag.com/smart-news/no-youre-probably-not-smarter-than-a-1912-era-8th-grader-19949041/?no-ist


[9]Paul: Glee in WH after 9/11 http://www.politico.com/story/2011/12/paul-glee-in-wh-after-9-11-070156#ixzz1g4NPLTUD


[10]Farmer’s Tower http://www.mnhs.org/library/tips/history_topics/70peavey.php


[11]Revisiting Montana’s Historic Landscape http://montanahistoriclandscape.com/tag/railroad-corridor/


[12]Fortified Churches of Europe http://whc.unesco.org/en/list/596


[13]Blickle, Peter (2004) Heimat: A Critical Theory Of The German Idea Of Homeland


[14]Center for Cooperatives http://www.uwcc.wisc.edu/whatisacoop/history/


[15]Brew your own: Argentina’s micro-refinery New Agriculturalist http://www.new-ag.info


[16]What is Biodiesel? http://extension.agron.iastate.edu/soybean/uses_biodiesel.html


[17]Gains In Biodiesel Add Up for Rural Areas http://unitedsoybean.org


[18]Biodiesel – Your Farm Has Fuel http://www.hobbyfarms.com/crops-and-gardening/fuel-from-your-farm.aspx


[19]Armored Bulldozer http://www.popsci.com/russia-unveils-armored-bulldozer


[20]Future Farms of America Might Not Include Much Family http://www.npr.org/sections/thesalt/2013/01/31/170659579/future-farms-of-america-might-not-include-much-family


[21]Sustainable Communities: Creating a Durable Local Economy Rhonda Phillips, Bruce Seifer, Ed Antczak Routledge, Aug 15, 2013


[22]Creating Wealth: Growing Local Economies with Local Currencies by Gwendolyn Hallsmith


[23] Testimony After Catastrophe: Narrating the Traumas of Political Violence By Stevan Weine


[24] Rural Neighborhood Watch Program https://www.sonomafb.org/Farm+News/Farm+News+Archive/2014/Feb+14/Rural+Neighborhood+Watch+Program.htm


[25] Murder Rates Rising Sharply in Many U.S. Cities http://www.nytimes.com/2015/09/01/us/murder-rates-rising-sharply-in-many-us-cities.html?_r=0


[26] 10 facts about religion in America http://www.pewresearch.org/fact-tank/2015/08/27/10-facts-about-religion-in-america/


[27] After Hurricane Sandy: Time to Learn and Implement the Lessons in Preparedness, Response, and Resilience http://www.heritage.org/research/reports/2013/10/after-hurricane-sandy-time-to-learn-and-implement-the-lessons


[28] Viability & Sustainability in Rural Agricultural Communities: Residents’ Perceptions of Individual, Community and Macro-Level Factors – By Brenda Bacon and Derek Brewin http://home.cc.umanitoba.ca/~brewindg/Rural1.pdf


[29] Diminishing Job Prospects for Protestant Pastors www.pbs.org Religion & Ethics Newsletter


[30] Midwest American Rural Landscapes and the Creation of a Unique Theatre Culture, 1870-1940 by Richard L. Poole http://www.muse.jhu.edu

Letter Re: Some Harsh Lessons of Beekeeping, by Keith K.

Hugh,

Regarding the Harsh Lessons of Beekeeping, I began raising bees five years before relocating to the Redoubt from SC. I was stung often back East. One hive came with us in a trailer with the “mountain useless” motorcycles. When I purchased five nuc hives to build out our bee population the following spring, I was stung and had a dramatic trip down the mountain to the ER. The second year, while working the frantic hives in spring (six died and six were near starvation, suffering from bad weather), and I was stung AGAIN and went to the ER again.

Both times I was stung through the veil on my face.

So I got a clue and began the allergy shot series in CDA. After 6 months of ramping up the dosage, now when I get a “shot”, equivalent to two bee stings, I’m okay.

So the warning is this for all you beginning beeks: consider that you may be used to bee stings from the part of the country where you came from, the California bees for sale here in Idaho may have some attributes in their venom that is foreign to your body’s immune system. I discussed the possibility that Africanized Honey Bee venom may be slightly different with Dr. Wakefield, and that over time, AHB DNA will get into the general population of bees. Or, perhaps I’m just getting old, and all the work of setting up a homestead just made me vulnerable. We sold honey this summer for prices well above the “market” due to our pristine area. However, recovering from $10,000 worth of ER bills in two visits will take a lot of jars of honey. At least, tell your medical doctor you are taking up beekeeping and you would like a prescription for two epi-pens. My son’s epi pen saved my life. – K&K

Economics and Investing:

This may be a little hard to grasp, but it’s important to understand. Please read and take necessary precautions to protect your savings. Unimaginable 247 Trillion In Derivatives Could Trigger “Financial Armageddon”. Warren Buffett referred to derivatives as “financial weapons of mass destruction”… – L.G.

Items from Mr. Econocobas:

China Stocks Rout on First Market Day of 2016 Trips National Trading Halt

China’s Seven-Minute Selling Frenzy That Shook Global Markets

The Year Nothing Worked: Stocks, Bonds, Cash Go Nowhere

Items from Professor Preponomics:

US News

Puerto Rico is Greece and These Five States are the Next to Go (Zero Hedge) Excerpt: “It would take a long time for underfunded pension plans (e.g., 60% funded) to run out of cash, given the long duration of plan liabilities. But as investors learned in Puerto Rico and Greece, bond markets can drift along unconcerned with mounting fundamental problems, only to experience a rapid repricing at times that cannot be predicted.” Here’s the Watch List: Illinois, Connecticut, Hawaii, New Jersey, and Kentucky.

Public Lands: The Case for Transfer to the States (Waste Fraud and Abuse) Excerpt: “Utah is at the forefront of the Transfer of Public Lands movement. In 2012, the Utah state legislature passed legislation that lays down the foundation for transferring public lands to state ownership.”

Why First Time Home Buyers are Staying on the Sidelines (Market Watch) Excerpt: “First-time home buyers are staying away for a number of reasons, experts say, including rising home prices, high levels of debt, cultural changes that have younger Americans getting married and merging incomes later, and a general lack of information about, and enthusiasm for, the homebuying process.”

International News

Korea: The Canary in the Coal Mine (Business Insider) Excerpt: “Economists look to Korean exports because they are the world’s imports. Major traded goods are as varied as automobiles, petrochemicals, and electronics, such as PCs and mobile devices.”

More Currency Intervention Madness by the Arrogant Fools Who Run the Swedish Central Bank (Contra Corner) Excerpt: “Why does the Riksbank think it will succeed when nearly every currency intervention in history has failed?”

Greek Central Bank Warns Country “Unlikely to Survive Another Bout of Instability as Bank “Jog” Accelerates (Zero Hedge) Excerpt: “Something unexpected happened on the road to the latest Greek “recovery”: the local population no longer believes one is coming.”

Personal Economics and Household Finance

The Coupon Insider: What’s Stacking? (Living on the Cheap)

Readers’ Recommendations of the Week:

J.M. wrote in: I recently re-read Leon Uris’ Exodus and can highly recommend it.

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SurvivalBlog reader R.S. suggested “The Big Short”, which released Dec 23, is an amazing, funny, horrifying, and astounding “true story” look behind the curtain of the banking sub-prime mortgage fiasco. While rated a hard R, it is definitely worth seeing without the kids. It uses almost a documentary style taking complicated banker lingo and mindset, then translating into concise, understandable concepts (those are the horrifying parts) what actually happened inside the financial industry between 2005 and 2008. Highly recommend, but WARNING, it will haunt you!

Odds ‘n Sods:

It appears that one of President BHO’s new executive orders (due to be signed on Wednesday) will expand the definition of “engaged in the business” selling guns, and this will hurt gun collectors and our gun shows. It appears that they are going to try to corral more INTRAState transactions of used merchandise into Federal jurisdiction, via the Commerce Clause, which is all about INTERstate commerce of newly-manufactured merchandise. They can “hope and change” this all they want, but it is unconstitutional. And we all know what Marbury v. Madison says about unconstitutional laws: We can ignore them. (“Lex malla, lex nulla.“) – JWR

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SurvivalBlog reader D.H. wrote in: “Some of us cannot relocate to the Redoubt no matter what we may wish… so we do what we can where we are! The State of Jefferson Committee is submitting the 21 counties declaration for separation due to lack of representation in forming a 51st state in Northern California. It is the beginning of what we here in Northern California will bring the needed changes to our currently out of control bankrupted state. It’s a long shot, but we are doing all we can to contain the crazy that is the socialist government control of California. There will be many enemies of this change, but it is the right thing to do to prevent continued deterioration of a wonderful geography that is California as a place to live and call home. Blessings to you all, and keep the State of Jefferson Movement in your prayers so we can limit the insanity that has become the politics of this magnificent place.”

o o o

China continues to press its advance in the South China Sea: China Lands Plane on S. China Sea Island, Upping Tensions – RBS

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This is concerning news: North Korea Says It Has Conducted ‘Successful’ Hydrogen Bomb Test If this is true, having a fusion weapon puts North Korea in a whole new class of scary with their psychotic leader in control.
–also–
North Korea Confirms It Conducted “Successful Hydrogen Bomb Test” As “Act Of Self-Defense” Against US – GJM

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PBS has an interesting documentary on Benjamin Netanyahu’s political rise and his relationship with the U.S. – MtH

Hugh’s Quote of the Day:

“The Union was formed by the voluntary agreement of the States; and these, in uniting together, have not forfeited their Nationality, nor have they been reduced to the condition of one and the same people. If one of the States chose to withdraw its name from the contract, it would be difficult to disprove its right of doing so.” – Alexis de Tocqueville

Notes for Tuesday – January 05, 2016

January 5th is the birthday of the late John Pugsley(born 1934, died April 8, 2011), libertarian and economics author. Pugsley was well known in preparedness circles as the author of The Alpha Strategy. (The book is out of print, but a PDF is available for free download.) It is also the birthday of General Courtney Hodges (born 1887 – January 16, 1966). Kicked out of West Point for low math scores, he enlisted as a private but soon became a maverick officer and went on to a distinguished career.

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Now that a month has elapsed, many SurvivalBlog readers have read my novel Land of Promise. Your brief reviews at Amazon.com would be greatly appreciated. Thanks, – JWR

December in Precious Metals, by Steven Cochran of Gainesville Coins

Welcome to SurvivalBlog’s Precious Metals Month in Review, 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 December?

Every December is a time of thin volumes in all assets. One good-sized sale or purchase can move prices. All this was exaggerated by the Fed’s December 16 interest rate hike. Gold jumped $20 an ounce multiple times this month, only to see the gains slowly eaten away each time.

December 4th was a strange day, as a very good non-farm payrolls report lifted the dollar and the stock market. What was unexpected was the price of gold jumping at the same time as the dollar.

“Sell the rumor, buy the fact” was in full swing just hours ahead of the Fed’s December 16 interest rate announcement, as gold jumped $14 an ounce and held onto those gains through the closing bell. The fortunes of the yellow metal reversed the next day, brought down by a rampaging dollar. This was only a temporary setback, as gold then went on a two-day to test the $1080 mark. Gold slowly lost steam for the rest of the month, weighed down by a collapse in crude oil prices.

Factors Affecting Gold This Month

Job Numbers

U.S. non-farm payrolls came in at 211,000 new jobs added for the month, better than the 200,000 expected. Unemployment remained at 5%. This data basically gave the Fed the green light to raise interest rates for the first time since 2006.

Strong Dollar

The dollar was expected to gain throughout the month on strong jobs news and a Fed rate hike, but the European Central Bank’s announcement of further stimulus measures did not go as far as many expected. This caused a big squeeze in the crowded short euro/long dollar speculation, which saw the euro jump to close to $1.10. This was another case of speculators betting on a “sure thing,” only to get burned.

Fed Rate Hike

The December 16th interest rate hike by the Fed roiled markets that were already volatile on a lack of trading volume. Contrary to expectations, gold did not fare badly at all in the following days, though it lost ground after this last rally of the year.

Year-end Selling

Most senior traders take most of December off, leaving the junior traders to hold down the fort. Most serious investors also take their holidays then, meaning there are much fewer trades happening. The most common trades for December are tax-loss trades and rebalancing of fund portfolios.

If an investor or fund has realized large stock gains but losses in gold, they will sell that gold the last week of the year to count the losses against the profits in stocks. Diversified funds that hold gold will have to buy more gold at the end of the year if gold posts a loss.

This happens when many traders and investors are gone for the holidays, which means that trading activity is very low. This allows large trades to move prices.

Paper Gold Speculators

Paper gold speculators hit a record short position early in the month, as speculators piled into “a slam dunk” trade. Net short positions on COMEX gold were 17,949. The traders taking the long side of that short play were the bullion banks, which set a record net long position. Speculators, noting that futures contracts were for 325x the amount of actual physical gold in COMEX warehouses, decided to jump over to the bullion banks’ side of the equation. The December 29 Commitment of Traders report showed that the all-time record net short position at the first of the month had turned into a massive net long position. The number of traders going long over the number of shorts rose by 12,771 contracts to 26,427.

This is good news for those holding physical gold, as it means that more of the biggest players expect gold to rise in the near future.

Oil Collapse

Crude oil had a rollercoaster month, but it was mostly downhill. Starting the month at $40 a barrel, U.S. crude fell to multi-year lows by mid-month. Crashing crude prices pulled most commodities, including precious metals, down with it. U.S. crude ended the month at $37 a barrel.

Junk Bond Meltdown

Believing the lullaby that the Fed would not let anything bad happen, some investors piled into junk bond mutual funds without understanding exactly what they were getting into. They found out that the old saying “high yield equals high risk” when three large junk bond mutual funds collapsed in three business days. This contagion led to a risk-off sentiment in stocks as well as bonds, as billions of dollars worth of investments were yanked from the market.

On the Retail Front

Us Mint

The American Silver Eagle set a new all-time sales record for 2015, selling the complete production run of 47 million coins by December 16. The record had actually been broken November 30th, when sales exceeded 44 million ounces.

To put this in perspective, 47 million troy ounces equals 1,461.8 metric tons. The total amount of silver mined in the U.S. for the year was only 1,169 metric tons.

Silver Eagles weren’t the only hot commodity at the US Mint. Gold Eagle sales were up almost 53% from last year, and all 45,000 of the America the Beautiful 5 oz Saratoga National Historical Park silver coin sold in two days!

Central Banks

The Red Twins of Russia and China show no signs of slowing down their acquisition of gold reserves. Russia bought another 22 metric tons of gold in November, marking the ninth straight month of net gold purchases. (Part of this is supporting domestic gold mines by buying their output.) Through November, Moscow has added almost 187 metric tons to its gold reserves.

China added almost 21 metric tons to its gold reserves, making five months in a row that Beijing has bought gold. Kazakhstan has them all beat on buying sprees, as November marked the 38th month in a row that the little nation has scraped up as much gold as it can.

Even with all these gold purchases, both China and Russia are far behind the Western nations when it comes to the percentage of gold they hold in their reserves.

Market Buzz

First Step In Gold Confiscation

On December 1st, the Greek government (remember those “stick it to the banks” socialists that won the election?) declared that citizens MUST declare on a new tax form any cash over €15,000, jewelry, and physical precious metals they own, either at home or in safety deposit boxes, in Greece or in foreign nations. While the government says this only applies to members of Parliament, government employees, media owners, and “other categories of persons,” it’s obviously aimed at suppressing dissent with threats of confiscation or charges of corruption. You don’t have to be Pythagoras to see the angle the government in Athens is taking with this. It won’t be long until ALL categories of persons will be forced to declare their assets held outside the banking system, on pain of confiscation

Original article at the Enikonomia newspaper

Same article, translated to English

Steve St. Angelo – SRSRoccoReport looks at US silver import and export data, and discovers that a substantial amount of silver is missing from normal trade. The only explanation is “large entities” are acquiring physical silver and abandoning paper silver on a gigantic scale.

After “junk bond dominoes” started falling, David Stockman warned of “carnage in the casino” that the Federal Reserve has built. He urged people to “sell the bonds, sell the stocks, sell the house, dread the Fed.

“Bond King” Bill Gross also goes with the gambling theme, calling central banks “casinos” that are printing money

Peter Schiff is among those warning that the economy is far weaker than the Fed wants you to believe. He predicts that this month’s rate hike will soon be reversed, with quantitative easing resuming shortly afterward.

China gold expert Koos Jansen interviews economist Willem Middelkoop about the coming “Big Reset” in the global economy, aimed at ending the US dollar hegemony.

In the category of “So obvious, even a liberal can see it,” Bernie Sanders says that the Wall St. banks are running the Fed, and it’s time to stop them.

While on the subject of the Fed, former Chairman Ben Bernanke, who first started up the money presses to bail out the elites, said recently he never expected zero interest rates for so long.

Marc Faber talks about all the mistakes the Fed has made, and what it means to different assets. He says if someone forced him to choose to put $1 million on the Dow Jones Industrial Average, or gold, he’d pick gold.

Finally, Ron Paul gets a little coverage on his charges that the gold price is being manipulated.

Looking Ahead

Looking ahead, expect the “January effect” in stocks and also gold. The first week in January is when diversified funds rebalance and will need more gold. Also, those investors and fund managers who sold gold for the tax writeoff in December will be looking to replace the bullion they sold.

We end this month with the story that the Daesh (aka ISIS) are using blank passports they seized from government offices in Syria and Iraq to make fake passports for terrorists to get to Europe and the U.S.

Inflation Alert and Book Review from TM in Arkansas

First, a price increase is coming to your favorite bookseller. One of the premier book printing and distributing companies in the world has announced a 10% price increase in their print-on-demand and handling fees effective February 8, 2016. Additionally, products shipping from the UK will see freight charges increase by 3-4%. The freight charges will be determined based on service level at the time of order.

This printing increase is on top of the 5% rate increase announced by UPS effective December 28, 2015 and a similar price increase by FedEx effective in January 2016. The USPS has a full menu of services on the website Stamps.com showing their varied price increase. The price of mailing a letter is unchanged. Package rates are going up.

I urge you to review your reading wish list and order what you need as quickly as possible from your favorite bookseller. The publishers I have spoken to are going to pass the extra costs on to the buyer/reader effective January 29, 2016, due to billing cycles.

Book Review:

The Historical Dictionary of the Russian Civil Wars, 1916-1926
© Jonathan D. Smele 2015
Published by the Rowman & Littlefield Publ. Group, Inc., Lanham, Maryland 20706
ISBN: 978-1-4422-5280-6 (Hardback) $250.00 US Kindle $237.50

Wait! Do not scroll on down the page of this blog wondering why this book is being reviewed for preppers. The war in question began a century ago. The participants are dead. The governments are dead. So who cares? Read on and I will tell you why the story has many lessons for preppers.

First, the book itself is a two-volume work with 1470 pages, including comprehensive introduction, almost two thousand alphabetical entries, extensive bibliography, chronology, three appendixes, glossary, and list of acronyms and abbreviations.

This publisher also has a sizable offering of Historical Dictionaries of War, Revolution, and Civil Unrest books on their website at www.rowman.com covering most continents and historical periods. Check it out for your particular field of interest.

The only negative I can see is the price, which will keep it out of most personal libraries. I suggest you petition your local library to add a copy to its research section as soon as possible. Serious scholars needing a personal copy should put this on their gift list or wish list for their birthday or anniversary. It is that good.

The 4-page Reader’s Note is an excellent primer on the difficulties of writing and researching this subject due to the usage of a different calendar and the various translation styles.

The 38-page bibliography is a treasure trove for anyone wanting more in-depth information.

Each of the almost two thousand alphabetical listings is more than just a name and a short definition. The entries are so complete this work could easily be called an encyclopedia instead of a dictionary. Inside each entry are boldface cross references to terms with their own listing in the books. Think of them as hyperlinks on paper, and they are quite useful. When you begin connecting these dots, you will need a lot of notepaper.

I have checked numerous entries for accuracies and have found no discrepancies.

The 62-page introduction with 19-pages of footnotes is an excellent introduction to the subject for beginners. This is, I hope, a taste of what is in store for us in the author’s forthcoming book The ‘Russian’ Civil Wars 1916-1926: Ten Years That Shook the World to be published in February 2016. The author is quick to tell us the Russian Civil War did not end in 1920, as per most popular publications. It dragged on for an entire decade. Two and a half million military combatants died in the fighting. Another six million civilians died of hunger, disease, and another two million from terroristic actions. They’re terrible numbers, but civil wars are always bloody and civilians usually bear the brunt. It was a struggle to the death marked with horrific acts of violence on all sides. In total, it was the bloodiest civil war on record.

There were essentially four ‘Russian’ adversaries divided into Red communists/Bolsheviks, White reactionaries/monarchists, Green peasants, and Black anarchists. Several nations, including the United States, Japan, Germany, France, Great Britain, Turkey, Poland, and Romania invaded the former Russian Empire during this time for a variety of reasons and added to the confusion and mayhem. Interesting reading in and of itself.

So, why should we as preppers care about such things? The military history aspect is interesting to those so inclined, but what about ordinary folks trying to avoid a calamity in the near future? Simply put, the people involved experienced their personal man-made TEOTWAWKI. Reading their stories gives us firsthand information on how to survive such a catastrophe when it is our turn. There were no FEMA camps, Red Cross shelters, or National Guard trucks loaded with emergency supplies. The then young technology of telephones was essentially nonexistent in most of Russia. The soldiers were forced to live off the land, so they took whatever food and supplies they found from the civilians at the point of a gun. The civilians were left to starve. How did they survive? What did they do for potable water? How did they survive Russia’s well-known winters? The answers to these questions are pertinent today.

The civil war created thousands of refugees looking for sanctuary in any nation willing to take them in. Not all of those refugees were valid. Some were communist agents using the diaspora as a cover for sabotage, spy missions, and to establish sleeper cells by taking advantage of the charity of others. We now have the same situation with the civil war in Syria. What is being done today to face the threat of refugees with bad intentions?

My grandparents endured the Great Depression in the USA and the rationing of World War II. Talking to them and reading books on the subject taught me the value of a well-stocked pantry. Reading about the civil wars in Russia, Germany, Hungary, and other Eastern European nations during the past century has taught me the value of beans, bullets, Band-Aids, and the fourth B– books. We can learn from other people’s experiences to better prepare ourselves for the emergencies/catastrophes of our lives, and these books are a great place to start.

Letter Re: Some Harsh Lessons of Beekeeping, by Keith K.

To the Editor;

Keith K. was absolutely correct in that if one is considering keeping bees as a TEOTWAWKI pollinating vector and food supply (honey), there should be an innate interest present before devoting time and effort to the project. I fully realize that there should be more initial motivation than just consideration of a cost/benefit analysis before entering into the hobby of beekeeping. Specifically, the overall homestead health and sustainability must be considered to see whether beekeeping would be a good fit for daily life and upkeep. We will all respond in relation to our own skills and gifts in a post-SHTF homesteading situation, and if beekeeping is not an interest of yours, then work towards optimizing your own surroundings in your own way. As a backyard beekeeping enthusiast myself, I think often about how to continue my own hives post-collapse as a method of food production and garden/crop pollination. Along with my standard preps, I find it not an additional burden to stockpile sufficient supplies to keep my hives running smoothly whether society is functioning or not. Further, I am learning how to build my own hive systems (using hand tools) and raising my own queen bees which will allow me to barter with other budding beekeepers post-collapse. Due to my home’s placement adjacent to a number of undisturbed meadows, I have found my honey production to be very acceptable (160 lbs from one hive last season). Once a post-collapse economy is initiated, honey as a food source will make a beekeeper a valuable resource (see the book Enforcing Home by A. American). Overall, in order to make beekeeping an integral component of my post-SHTF homesteading plans, I rely on my strong interest and love for these amazing creatures, and my wonder at the bounty they provide. – SF in VT

News From The American Redoubt:

Here is just one more reason why it is inevitable that Eastern Washington will ask for partition from the Left Coast.

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Once again, the American Redoubt States rank well.

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The falfiles.com has a post with a decent background on what’s going on in Oregon right now.

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More background on the conflict in Oregon:

Where there’s smoke – B.B.
Militia takes over Malheur National Wildlife Refuge headquarters – B.B.
TalkNetwork.com’s Pete Santilli streaming LIVE from the Hammond family constitutional crisis event in Oregon – RBS

And, of course, the liberal/progressive point of view: #OregonUnderAttack: People slam lack of govt action after Bundy’s militia takeover in Oregon

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SurvivalBlog has many concerns over this fiasco that is formulating right now. We agree with the core issues at stake: The Federal government land grabs and abuses of power, minimizing the states rights, and the underhanded practice of intimidating citizens to effect their desired response are among them. The grievances are stacking up. However, we also have grave concerns over the actions of the Bundys and the militias. The Hammonds clearly don’t want this battle and, in fact, have already turned themselves into the California Prison. The Bundys have forcefully occupied a federal compound, baiting an armed response. Mike Vanderboegh’s blog (which we linked to yesterday) sums up our concerns rather well. The Bundys are bound and determined to bring the fight to the Federal government, and they are attempting to drag every patriot into the battle with them whether you agree with them or not. Unfortunately, their tactics are not morally sound. I fear that in attempting to recreate the circumstances of the American Revolution, they are instead recreating the French Revolution. We encourage fellow patriots not to flock to Oregon, where you would be considered outsiders and not entirely welcome by the local population, but instead, prepare in your local area where your strengths are. The fight may be coming to you. Continue to pray that the Federal government does not end this in a Waco-style assault.

Economics and Investing:

Saudi-Iran Dispute Won’t Cause Lasting Oil Price Rally

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Wall Street Journal: 7% Fall in the Chinese Market Triggered Closure for the Day – T.A.

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Items from Professor Preponomics:

US News

Rand Paul: Here’s Why We Should Audit the Fed (Business Insider) Excerpt: “It is no secret that the Federal Reserve’s unchecked printing press causes recessions and increases income inequality. Allowing the Fed to inflate our money supply will artificially keep interests rates low, but at what cost? Their acts can no longer go unchecked…”

The Rise of the Zombie Earmark (Taxpayers for Common Sense) The key to a change in behavior is the CHANGE in BEHAVIOR. It’s not about imposing new rules only to find ways to work around them! It is about making a sincere and determined decision to change course and then following through on that choice. Excerpt: “When Congress banned earmarks in 2011, House Speaker John Boehner said stripping lawmakers’ ability to direct federal dollars to their pet projects was a “critical step to restore public trust.” But nearly five years later, members of Congress have found stealthy ways to load up defense spending bills with scores of provisions propping up programs the military didn’t request and doesn’t want — while also allowing some earmarks from decades past to live on.”

International News

Greece Warns Creditors on “Unreasonable Demands” Over Pensions (Financial Times) Excerpt: “He stressed that the economy would not withstand a repeat of the 2015 stand-off that pushed the country to the brink of a eurozone exit and financial collapse.”

Personal Economics and Household Finance

Recognize the Signs of Discontentment (Stewardship Central) Although this article was written with churches in mind, the message is also a very important one for individual households. Excerpt: “There’s one issue in particular that, if not dealt with, makes the proper handling of money almost impossible. That issue is discontentment. And it’s a great place to start the money conversation.”

How the Medical Code Overhaul Will Affect You (Market Watch) Be aware of the changes coming and anticipate that more time will be dedicated to your insurance and payment of any money due than will be invested in time with your healthcare professional. Excerpt: “Your doctor and medical staff may get crankier. Your health insurance claims may be denied or delayed. You could be pressured to pay health care balances in full, rather than over time. Welcome to the new world of medical coding that took effect Oct. 1, 2015.”

Monthly Spending Worksheet (Frugal Living) A simple tool well worth using to sort out where your money is going and how to manage it more effectively. Even for those among us who are proactively financially disciplined, a review and refresher of the ways in which we spend money is a good idea!

The Jury Duty Scam (Identity Theft Resource Center) Spoiler Alert: Do not make payments over the phone. Here’s How It Works: “Callers posing as sheriff’s deputies reach out to individuals at random to inform them that they have failed to appear for jury duty, and have therefore had a contempt judgment levied against them. The deputies then offer to accept payment over the phone for the fine.”

Odds ‘n Sods:

Doctors can report some mentally ill patients to FBI under new gun control rule – JBG

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Reader P.S sent in this link to a “Graduation-rate Estimator”. For communities that are fairly well in the middle, it does a pretty good job of estimating graduation rates from high school. However, as you move towards the ends of the spectrum, it has trouble. It is possible on the estimator to get better than 100% graduation simply by paying your teachers more than anywhere else. Nonetheless, if you are looking for a tool to help you decide where to relocate, this might help. Of course a far better concept is to find what areas are supportive of homeschooling or private schooling.

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Obama releases details of his planned “executive orders” on gun control: White House Will Require Background Checks at Gun Shows and Online I noticed plenty of “talking points” keywords, such as “gun show loophole”, “common sense”, and “The majority support it.” Of course all of the talking points are distortions of known facts, and the report actually ends with the statement that none of these actions would have actually stopped any of the violence this last year.

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Obama is the #1 gun salesperson ever! – 2015: The Year of the Gun. The FBI reports an all-time record number of background checks processed. – Sent in by RBS

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From the Desk of Mike Williamson, SurvivalBlog Editor At Large:
Widener’s still has some M44 Mosin Nagant carbines available. These were re-arsenaled post WWII. The ones I just received were in much better shape than described, clean, operated smoothly, and shot accurately. If you are not familiar with this series of rifles, they are tough, reliable, easy to maintain and accessorize (though there’s no real need to), have sufficient power for most animals on the North American continent, and use ammo that is readily available both commercially and surplus, being still in production for Russian machine guns.

As there will be no imports of Russian weapons for the foreseeable future and because numbers are dwindling, they are also a worthwhile investment with potential for appreciation.

I have no financial interest in Widener’s but am a regular customer. I have found them to be professional, courteous, and to deliver excellent product at fair prices.

Hugh’s Quote of the Day:

“We’re developing a new citizenry. One that will be very selective about cereals and automobiles, but won’t be able to think.” – Rod Serling

Annual Reminder: The Ten Cent Challenge

I only post one reminder each year about Ten Cent Challenge subscriptions, and this is it. Unlike the whining leftist hand-wringers at PBS, I don’t do endless pledge drives.

I depend on my readers to help pay the bills to keep SurvivalBlog up and running. Our web hosting on a dedicated server costs $650 per month, and our local ISP bill is $135 per month. We also have a salaried Managing Editor, a paid Product Review Editor, and other expenses including liability insurance, phone bills, computer hardware, software, accounting, subscriptions, writing contest Honorable Mention prizes, and so forth.

My appeal is simple: If you feel that you get more than 10 cents per day in value from reading SurvivalBlog, then please make a voluntary subscription payment, for 10 cents a day. (That’s $36.50 for a year.)

I don’t keep any e-mail lists, which is why this annual post is necessary. (I never e-mail any solicitations for subscriptions or renewals. Subscriptions are purely on the honor system.)

The Silver Dimes Option I also take payment for subscriptions in the form of pre-1965 U.S. silver dimes. The current multiplier for silver is around 20-to-1. (20 times face value–so a silver dime is worth about $2.00.) But since mass inflation looks inevitable, I expect that the value of a silver dime will soon exceed $10. So please just send three silver dimes for each year’s subscription. OBTW, it is best to tape them to a scrap 3?x5? card before placing them in an envelope, so that the coins don’t rattle around. And of course check with your postal clerk for the correct postage.

Our mailing address is:

SurvivalBlog
P.O. Box 303
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