Letter Re: Barter, Post-TEOTWAWKI: The Micro Store

Dear Mr Rawles,
I’ve been reading your archives. I loved the December, 2011 SurvivalBlog article titled Barter, Post-TEOTWAWKI: The Micro Store. This one is a natural for me.  One way that I have been collecting barterable items is at yard/garage/estate sales.  Estate sales in particular are excellent for the micro store collection.  You hit the kitchen area and get current food items for your own stores and then the bathroom for bandages and sample size items such as soap, shampoo, shaving gel, toothpaste and so forth.  I’m not talking about items used but items never opened; I have even found various supplements also never opened.  I told my sister the nurse that if TSHTF I have a small hospital for her.  Leg brace boots are also really very cheap and can come in very handy.  

One item I have seen a ton of is sewing supply; I am partial to those heavy duty needle packs that are bound to come in handy for patching up heavier gear, am looking for upholstery thread that would go well with those kits, or dental floss can used if needed.  As far as cigarettes, I can get those at half the cost from Indian tribe stores, I have placed individual packs in Seal-a-Meal bags and vacuum packed them and placed them in the freezer, also did that with cigars I picked up at a yard sale.  I don’t smoke but know that if a smoker is desperate enough, anything will do 

Another item that I think is very handy are those small pouches of seasonings, they have become quite expensive at a grocery store, up to $1.89 each. At estate and garage sales I pay a quarter or less for them. If you have potatoes, pasta or rice, one packet of flavoring will go a long way.  I do plan to get some of those little bottles of liquor that are sold on air flights, those are an excellent idea.  Going on to the garage area is great for fishing gear and tools.  I have come home with prepper items along with a few collectibles to sell on eBay.  The profit from what I sell on eBay covers the cost of my prepper item purchases. 

I was curious however, about my plan to move from Washington to Idaho. When I do find a small town to live in, wouldn’t those people already be prepper-minded thus making a micro store a moot point?  Just wondering.  My husband said we could just set up shop to an area that was not prepper-minded and sell/barter there.

Keep up this wonderful work and call me, – Prepper on the cheap.
   
JWR Replies: Don’t worry about the lack of a barter market in a region with more predominant preparedness and self-sufficiency. Even there, you will find plenty of people that are not well prepared, or those who have overlooked some items that they will need. The sure bets will be expendable items like soap, tape, detergent, lubricants (especially two-stroke fuel-mixing oil), common caliber ammunition, salt, seeds, various liquid fuels, adhesives, batteries, flat earth tone camouflaging paints, and so forth.

Economics and Investing:

G.G. flagged this: One in Three Young U.S. Workers Are Underemployed

John Williams: The Real Unemployment Rate: 22%?Not 8.1%–The coming fiscal cliff: hyperinflation on track for 2014

The wrecking ball of hidden inflation and Fed based strategies – food inflation far outpacing overall inflation and eating away at the purchasing power of 46,000,000 Americans on food stamps.

Jim Willie: Gold Cover Clause Guidance

Items from The Economatrix:

Anti-Gold Propaganda Push, Gold Cover Clause For Enabling Competing New Currencies

The Fed, Wall Street Prepare To Unleash Crisis 2.0

Faber Sees Crash Like in 1987 if US Stocks Climb Higher

The Economy Is Muddling Along a Cliff’s Edge

Odds ‘n Sods:

More about vertical gardens.

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Reader Rhonda T. mentioned an interactive map on privileges for homosexuals.  Why is this appropriate to mention in SurvivalBlog? She explains: “Since this topic is often inversely related to a state’s depth of religious conviction, its also a good (if inverse) indicator of conservative states–which might help someone in their relocation decision.  You know, us ‘God and Guns’ folks”. JWR’s Comment: Once again, the American Redoubt states had a good showing, but it is clear that Oregon and Washington have succumbed to California-style political correctness.

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Perhaps we were wise to move our server to Sweden: The FBI took — and mysteriously returned — their server. Here’s their story . (Thanks to Karen D. for the link.)

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Veteran SurvivalBlog contributor K.A.F. sent us this: Washington state health officials declare whooping cough epidemic, seek CDC help as cases soar

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The Southern Agrarian has a review of the Bison hand pump. There is also a post showing the installation of the pump in tandem with a submersible electric pump.

Note From JWR:

Today we present two more entries for Round 40 of the SurvivalBlog non-fiction writing contest. The prizes for this round include:

First Prize: A.) A gift certificate worth $1,000, courtesy of Spec Ops Brand, B.) A course certificate from onPoint Tactical. This certificate will be for the prize winner’s choice of three-day civilian courses. (Excluding those restricted for military or government teams.) Three day onPoint courses normally cost $795, and C.) Two cases of Mountain House freeze dried assorted entrees in #10 cans, courtesy of Ready Made Resources. (A $350 value.) D.) a $300 gift certificate from CJL Enterprize, for any of their military surplus gear, E.) A 9-Tray Excalibur Food Dehydrator from Safecastle.com (a $300 value), and F.) A $250 gift certificate from Sunflower Ammo.

Second Prize: A.) A Glock form factor SIRT laser training pistol. It is a $439 value courtesy of Next Level Training. B.) A FloJak FP-50 stainless steel hand well pump (a $600 value), courtesy of FloJak.com. C.) A “grab bag” of preparedness gear and books from Jim’s Amazing Secret Bunker of Redundant Redundancy (JASBORR) with a retail value of at least $300, D.) A $250 gift card from Emergency Essentials, and E.) two cases of Meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value) and F.) A Tactical Trauma Bag #3 from JRH Enterprises (a $200 value).

Third Prize: A.) A Royal Berkey water filter, courtesy of Directive 21. (This filter system is a $275 value.), B.) 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, C.) Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy. This is a $185 retail value, D.) A Commence Fire! emergency stove with three tinder refill kits. (A $160 value.), and E.) Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security.

Round 40 ends on May 31st, so get busy writing and e-mail us your entry. Remember that there is a 1,500-word minimum, and articles that relate practical “how to” skills for survival have an advantage in the judging.

Three Bug Out Considerations You Probably Haven’t Considered, by Jonathan G.

For most preppers, the action plan for a TEOTWAWKI scenario can be neatly categorized into basically one of two categories:  Bug in or Bug out.  Many people live in rural areas with sufficient security and provisions to be able to go to ground in the event of a disaster and ride out the storm.  “Sufficient” security might include bunkers, shooters, stockpiles of ammunition and weapons, spare parts, etc.  “Sufficient” provisions might be enough food to get the defense force and extended family of the principal through to the harvest, and enough seeds to ensure that the harvest will feed the crew indefinitely.  For many rural preppers, this scenario is an attainable goal.  For many urban preppers, however, this goal could never be realistically accomplished.  For that reason, we have to consider the possibility of bugging out.
There are some relatively standard considerations that almost anybody with a functional brain housing group would think through prior to bugging out.  Where am I going to get fuel?  What type of vehicle do I need?  How much food and water should I be taking with me?  Where am I going?  These are the basics of bugging out, and many of the conversations I see around the topic within the forums are geared towards that end.  These are great considerations, and they need to be considered as a bare minimum before attempting a bug out.  But, having experienced moving through combat zones for most of my adult life, I’d like to offer some other considerations that may not be so obvious.

As a caveat, these considerations are based upon several assumptions.  First, we are assuming that the power grid is down.  Second, we are assuming that the domestic security situation has degraded to the point that the police are no longer capable of providing safety and order (if they ever were capable to begin with).  Therefore, based upon those two assumptions, we have to further assume that traveling is a very dangerous activity.  People will be looking for targets of opportunity for any chance of finding food, water, or supplies. 
Here are some not-so-obvious considerations for bugging out based upon those assumptions:
What are my primary and alternate routes going to look like?  Yes, I said “alternate route.”  While it may be expedient to travel along paved roads to arrive at your bug out location, it may not be realistic.  There are several reasons why traveling along paved roads may not be the best idea you’ve ever had (remembering that we are assuming the security situation has degraded significantly):

  1. Paved roads are highly visible.  Traveling along paved roads will draw attention, particularly in a scenario where practically all vehicular traffic has ceased because of fuel shortages and security concerns.  Doing so may expose you to bands of roving thieves and other not-so-friendly types. 
  2. Bridges and overpasses make excellent choke points.  This means there is only one direction that you can travel, and it also means that you are in an extremely weak position to defend against a well-planned ambush.  It’s worth saying that if I weren’t a prepper who was working towards building supplies for my family, and the apocalyptic disaster happened upon me, I would probably use this method to feed my family.  A good ambush can be executed with a few well-placed individuals given the correct terrain.  An overpass or a bridge is the correct terrain.  It’s best just to avoid them.
  3. Roads may be impassable.  Think about a scenario where traffic was so bad that sat in their cars for days and didn’t move.  Many would eventually just leave the cars in the middle of the road and head home.  Remember, we’re talking about an urban situation here.  You might not even be able to fit your bug out vehicle down those roads. 
  4. Some people are capable of making shots at 500+ meters.  If you were driving down the side of a major highway, your enemies would be able to see you from far enough away that you would never hear the bullet that killed you.  There is relatively little cover and concealment on highways. (Obviously it is hard to drive through cover and concealment.) 

Since your primary route was probably a highway, I’d like to challenge you to come up with an alternate plan.  Let’s try it on foot this time, through the woods if possible, or at a bare minimum through back streets where ambushes would be less likely.  If you’re a smart cookie, as many of you are, the thought of reaching your bug out location on foot will immediately trigger several other considerations.  Here’s a small list of things to think about:

  1. How will I navigate?  Since we are assuming the power grid is down, you probably won’t have a charge on your fancy little GPS system (if the satellites are still functional).  You’re going to need a good, old-fashioned map and compass to get where you’re going.  Do you know how use land navigation techniques?  You’d better start thinking about taking a class. 
  2. How much food and water can you carry on your person?  This might necessitate changing your overall bug out location. 
  3. How good is the cover and concealment along your alternate route?  Will it provide sufficient concealment for your needs, or do you need to augment your concealment through camouflage clothing?  What type of camouflage is most effective in your environment?
  4. How much private property are you going to need to cross to arrive at your location?  Can you detour through a publicly owned National forest or other location where you are less likely to run into the security forces of other private citizens?  Remember, trespassing during a major disaster might get you shot repeatedly.

Where are my en-route safe havens?  “What the heck is a safe haven?” you may be asking.  Think Custer’s Last Stand.  Where are you going to go when the stuff hits the fan right in the middle of your trip to the bug out location? 
For obvious reasons, I recommend having as many safe havens built into your route as possible.  One safe haven for every mile or two would be ideal.  They need to be thoroughly discussed, known by all members of the travel party, and visibly marked on all of the maps (of which everyone should have a copy).  A good safe haven will offer limited entry access, ballistic protection, cover, and concealment.  Concrete buildings work great.  Bathrooms within concrete buildings work even better (there is only one door in, the doors can typically be locked from the inside, and they are usually made out of concrete).  In a pinch, a thick grove of trees can serve as a great safe haven as it offers the bare minimum of ballistic protection, cover, and concealment.  You get the idea.  Here are a few additional things to consider about safe havens:

  1. Public buildings such as fire stations and park buildings are less likely to be defended by gun-toting militia members.  You might even run into a friendly fireman who has medical knowledge if you’re lucky, but most likely all government operations will have ceased by this point.  If you choose to utilize someone else’s property for a safe haven, you need to be prepared to fight for it.  This might not be the best idea, considering you might be getting chased at the time.  Even Hitler couldn’t win a two front war.  Think about it.
  2. You need a running password.  In the event that your group is split up, everyone will have directions to rendezvous at the closest safe haven.  The first person to arrive will secure the location and wait.  If other members of the group are inbound in a hurry, they need to have some way to communicate that they are secure and not under duress.  I suggest sign/countersign.  It can be as simple as a number combination.  For instance, let’s say our number combination was seven.   I might challenge the runner with the number “Four.”  The runner would reply with a verbal “Three” and, since those two numbers add up to seven, I would know that all is well and not feel compelled to shoot my friend.
  3. Ideally, a safe haven would not be too far off of your route.  It’s best if they lie along your route so that everyone knows where they are and how to get there.  The fewer the barriers between your route and your safe haven, the more quickly you can travel there when SHTF.  For instance, a river between your route and your safe haven could be disastrous. 

Do I need geocaches of critical supplies?  Since we’re now on foot, we obviously can’t carry as much as we would like.  We might need extra food, supplies, medical kits, ammunition, and more.  Since we can’t reasonably carry them with us, we have no choice to but to store them along our route.  I suggest planning en-route waypoints where critical resupply caches can be pre-positioned.  I would bury them if at all possible, on uncontested land (like somewhere deep within a national forest).  Mark them on your map, and then build the waypoints into your route.  If you get there and don’t need the supplies, leave them alone.  You never know when you might come back through. 

Obviously, you would need to develop some way of storing your cache in such a way that your supplies would not be ruined.  You have to keep it dry and serviceable despite weather and potentially having been buries for a long time.  Also, you need to think of a way to mark the cache so that it’s obvious to you but won’t cause cousin Earl from the local farm to dig up your supplies out of curiosity. 
As a general rule, I recommend one geo cache for each day of foot travel required to reach your bug out location.  Of course, many people will label me paranoid and crazy for even suggesting the practice, but then I guess I am a bit batty. 

I hope this article has helped someone think of a few extra considerations about bugging out that might save their life if TEOTWAWKI ever actually happens.  As always, any prepping is better than no prepping, so take it one step at a time and do it over time as you become able.  You’ll never regret being prepared. 

Consider Your Cordage, by Andrew G.

It is very regrettable that more often than not, those who prepare for surviving the future are viewed by society as being isolationist, separatists, and downright anti-social. Sure, this can be blamed on the media, propaganda, and perhaps a few loose cannons out there, but it’s also in part because many “preppers” do fall prey to a fearful “bunker” mindset. Sometimes even removing themselves from society at large. I wonder if more people would see the value of advanced preparation if they witnessed more preppers offering positive contributions to the general welfare of others in their community, state, and nation? Certainly many are providing such benefits to the communities in which they live, but could we do better…?

For our family, getting started with such changes necessitated a change of thinking. We had to first see that the value in getting more involved with people when a more fearful response seems appropriate at a times. We’ve had to learn to ignore the knee-jerk, fearful, run-and-hide reactions in favor of a more sound-minded approach. So setting aside fear, we’ve come to some conclusions that we believe would be beneficial to every family in every community. Like most wisdom we’ve learned, our journey into this understanding began with the words of wisdom found in the Scriptures. If you’re not a person of faith, please don’t stop reading – this is for you too!

“Though one may be overpowered, two can defend themselves. A cord of three strands is not quickly broken.” – Ecclesiastes 4:12

King Solomon, the attributed author of the above scripture verse, was reputed to to be the wisest person to ever live. In his profound wisdom, Solomon understood the simple truth that there is great advantage to doing things together.

We live during a time when such wisdom appears to be on the decline. Along with what should be common sense – advance preparation for the unexpected – many in our communities have also lost touch with the value that achieving together is better than failing alone. This wrong thinking can often infiltrate even the most prepared survivalist mind. It’s easy to think of every possible tool, supply, or scenario, and so easily forget this concept. 

Many Americans pride themselves on a rugged individualism. Certainly it’s good for an individual to be personally prepared and equipped to endure difficult times and challenges. There are times when such individualism is appropriate. However, there are also times when this is not at all appropriate. If I’m lost in the woods, being rugged, prepared and self-reliant is good. I need those to take care of myself. However, if my wife or children were to be lost in the woods with me, I must lay aside my individualism to a degree in order to provide the best possible outcome for them as well. Caring only about myself isn’t going to profit them very much.

It’s often said that the survivalist is the eternal optimist. This is said because it is the survivalist who plans for and expects to prevail in future difficult times. Yet despite such optimism, one of the chief challenges of the survivalist’s preparations is the understanding that such preparations take quite a bit of time, energy, and resources. 

Enter Solomon’s wisdom. 

We must be like Solomon (Ecclesiastes 3) and understand that with different seasons in life comes the need to adapt, change, and set aside some of our natural tendencies. Though not without it’s own challenges, we’ve discovered that nearly every part of preparing our minds, body, and shelters for the future is easier and more rewarding when done with other like-minded families or individuals.

Nearly every part of preparing to thrive and survive in the future is far more achievable when endeavored together with trustworthy friends, family, and neighbors.  As Solomon so aptly puts it… “One may be overpowered” – that is, one person and one family can indeed be prepared for the future, but unfortunately, they can also be easily overpowered. Consider for a moment the well-prepared family seeking to stave off masses of hungry, frantic, and unprepared people. This would be difficult alone and could result in loss, injury or death. 

It’s easy to see the value of being with others in the midst of an emergency, but consider for a moment the value of working with others before –  to prepare for an emergency.  Left to our own person or family, we’ll offer experience lack – lack of finances, time, energy, resources, attitude, or ideas. While more people doesn’t always mean less lack, there’s a better-than-average chance that more people to help will help, not hurt.. We lose jobs, get sick, get busy, and lose heart. Sometimes, even getting started in preparing is overwhelming. How is it then that we can hope to survive in future bleak times? These and many other reasons should cause is to consider the wisdom and benefits of preparing for the future together with others.

In our own experience, we’re finding it quite enriching to engage other like-minded families in our plans to prepare for an uncertain future. This not only holds hope for future benefit, but makes life quite a bit more enjoyable today as well! Every day brings with it new ideas, extra help, and new motivation. Each new challenge is met with access to more resources, knowledge, and information.  It’s a great joy to discover that a friend already owns a needed resource, or is willing to lend a hand with some heavy lifting. Perhaps best of all has been the camaraderie in this often-lonely journey. Not only are our own plans for the future becoming more solid and well-defined, but each person in our family is becoming personally fortified by the formation of meaningful and enduring relationships – from the youngest to the oldest. There’s a deep sense of satisfaction and strength in working with others. Every passing day we grow more and more confident that we can accomplish what we’ve set out to do. 

This is also helpful on many other levels. We’re benefiting from the diversity of personalities, the sharing of ideas, and the value of fellowship. We’re also resting easier with the expectation that we’ll endure future hardships together with others we can count on. We’re no longer “Surv I valists”,  but “Survival US ts” and man, is there a difference! When hard times come, we’re not likely to be overpowered no matter if those hard times be an enemy, fatigue, tragedy, or even our own attitude. Whatever comes our way, we’ll not be quickly broken. Our defense is stronger!

It’s especially interesting that Solomon notes that a cord of three strands cannot be quickly broken. Many would assume that Solomon is implying three braided or twisted strands. Three individual strands would certainly be stronger than one, however, three braided strands would usually offer even more strength. To do this, there needs to be some involvement or “braiding” of the strands. For our family, this translates into us spending as much time and energy on these relationships as we do in readiness preparation. We get together, we get to know one another better. We are trusting our lives and future with one another. Why? Because these relationships – and all our relationships ARE the future. Why do we hope to survive future hardship if not to enjoy the world that we’ll eventually live in? These relationships are the purpose that we want to endure beyond the next disaster or calamity. We hope for a safe and abundant future for ourselves and our loved ones on the other side of the whatever calamity might come upon us. No, this isn’t what most sheeple think of when they hear “survivalists”, but it’s our view that survivalists do what they do because  people matter and are worth the effort.

We’ve often discovered that getting others involved with us is hard at times. You know, braided rope is usually stronger than twisted rope for one reason – friction. Braiding usually creates the most friction between each strand in a rope and this friction  adds additional strength. So it can be in relationships! Honestly, the more we get to know others,  the more we encounter relational “friction”. Like many, sometimes this causes us to not desire the help of others. Ahhhhh… we must remember Solomon’s advice. Friction between people  is a natural and normal part of functioning as a team. So we don’t lose heart. We solidify in our minds these truths. We resolve to embrace friction, because it’s our differences, not our similarities that give us strength. After all, if two of us are the same, one of us is unnecessary. We continue to find that it’s not the people that are just like us that provide the best opportunity for working together, but those we didn’t expect. Remember this as you venture onward.

We hope you’ll take some time to consider what kind of “cord” you’re building. Can it endure hardship, or is it overcome easily? Consider the wise words of Solomon… Consider your cordage! Braid some more strands to your cord and better prepare yourself and your family for what lies ahead. Share your knowledge with others and invite them into your plans and preparations. In doing so, you’ll find strength, encouragement, hope and the best possible chance of surviving the future.

More Derivatives Market Mayhem: The JPMorgan Debacle

The mainstream media is abuzz with stories about JPMorgan’s $2 Billion in trading losses in just the past six weeks. Here some typical coverage: JPMorgan Hit by ‘Egregious’ Trading Loss of $2 Billion. The culprit? It was derivatives.

Ah yes, those pesky derivatives. Ich habe es Ihnen gesagt (way back in 2006.)

I won’t re-hash the details of the JP Morgan debacle that have come to light, because they have already been spelled out by many journalists. The best analysis that I’ve found thusfar came from the editors of Zero Hedge, in this piece: The “World’s Largest Prop Trading Desk” Just Went Bust. The facts are all there. There is also some good commentary at Fierce Finance: JPMorgan “hedges” look like prop bets.

What are the implications of this mayhem? They are all bad, especially for Mortgage Backed Securities (MBS), Credit Default Swaps (CDSes) and other collateralized debt obligation (CDO) derivatives. The band of fools in JPMorgan’s Chief Investment Office (CIO) were buying up CDOs at the same time wiser heads in the banking world were avoiding them like proverbial hot potatoes. It is noteworthy that most of these derivatives were purchased after the 2008 credit crisis. In the greedy eyes of the JP Morgan derivatives trading staff, buying this paper after it had taken a 20% haircut appeared to be a bargain. To compound their problems, not only they take on CDS contracts, but they created additional hedges around those derivatives. This is like taking a bet on a bet. What idiots. There is lots of conjecture about what was really going on in Morgan’s CIO. Was it all a hedge on inflation that went awry, because deflation lingered longer than expected? It may be weeks before the cognoscenti speak and we learn the full story. But one thing is certain: There is a fine line between hedging and proprietary (“prop”) trading, and the CIO appears to have crossed the line. And their hedges were big enough that they shifted the landscape of the entire CDS market. (They have hundreds of billions of dollars in derivative contracts in play at any given time. The counterparty risk is huge.)

The world of derivatives is a wilderness of mirrors. There are far more reflections (or vehicles) than there are real assets. There are synthetic CDOs–these are collateralized debt obligations (CDO) that are based on credit default swaps (CDSs) rather than physical debt securities. There are passive CDOs, and managed CDOs. (Those CDOs were what caused the huge writedowns of both Citigroup and Merrill Lynch.) There are Structured Investment Vehicles (SIVs), Super SIVs, and SIV-lites, all created by packaging multiple CDOs. SIVs are vehicles that allow banks to borrow short and lend long. There are variable interest entities (VIEs)–one of the favorites of the now-defunct Enron Corporation. Then there are Qualified SPEs (Special Purpose Entities or QSPEs) and Special Purpose Vehicles (SPVs) which are entirely new corporate entities–usually set up offshore–just for the purpose of handling SIVs and various CDOs. Ask presidential candidate Mitt Romney to explain these, since he is an expert. But then, he might not want to talk about it. So instead, read Moorad Choudhry’s book “Structured Credit Products: Credit Derivatives and Synthetic Securitisation.”

There is nothing quite like buying into a falling market. On Wall Street, they call that “catching a falling knife.” Many of the Credit Default Swaps that the JPMorgan CIO was trading were investment grade corporate bonds. But some, no doubt, were tied to real estate–the notorious residential mortgage backed securities (RMBSes). With so many foreclosures now hitting the market, the bottom for residential real estate in the United States is still nowhere in sight. And RMBSes are the main “assets” underlying most of those CDOs. In this amorphous era of the Fed’s Zero Interest Rate Policy (ZIRP), the practice of borrowing short and lending long can’t go on for much longer. At some point, interest rates will rise, and there will be blood in the streets. We must also consider that JP Morgan isn’t the only trading firm holding this stinky paper. There are probably lots of others that pursued similar hedging strategies. But because of its size, JPMorgan got all the recent publicity. I suspect that the full extent of the losses–especially those by other banking and hedge firms–have not yet been reported.

The bottom line, predictably, is that it is the American Taxpayers who are the ultimate guarantors for the losses caused by their folly. In the millennial era, the banksters consistently bet big, knowing that if they lose, then there will always be another bailout. They have a the certain knowledge that they have the Federal government in their back pocket. (The lack of a criminal indictment of MF Global Chairman Jon Corzine was clear evidence of that.) The “Too Big to Fail” mantra is now so engrained that the bankers feel invulnerable. This is one reason that the derivatives casino has grown tremendously. Of course they are willing to gamble when it is a “heads I win, and tails you lose” proposition! Banks that have their losses guaranteed by the government (and ultimately, by our tax dollars) shouldn’t be sitting at a casino table, slurping down liquor. But in effect, that is just where they are.

What will be the end result of JPMorgan’s huge losses in derivatives? Just a wait a few months. We likely hear post facto that there was a quiet bailout, measured in billions. The Mother of All Bailouts (MOAB) is alive and well.

Economics and Investing:

Kevin S. sent this: Fed clears China’s first US bank takeover

Faber Sees ’87-Type Crash if U.S. Stocks Rise Without QE3

Andre sent this: Banks prepare for the return of the drachma

From G.G.: Postal Service quarterly loss widens to $3.2 billion

Items from The Economatrix:

Housing Bottom?  Fannie Mae Won’t Seek Tax Dollars

Wages Bolster Spending as Americans as Americans Extend Hours

US March Wholesale Inventories Rise 0.3%, Sales Climb 0.5%

Home Prices Rise in Half of U.S. Cities as Markets Stabilize

Odds ‘n Sods:

Avoid Social Breakdown. Become Resilient. (Thanks to Kevin S. for the link.)

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Over at Global Guerillas: Big Twitter is Here

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Reader S. R. mentioned that there are some school teacher positions open in a retreat-worthy region: Navajo Public Schools. S.R. describes Jackson County, Oklahoma: “…a nice rural area with
good well water at about 10-to-30 foot depth, a long growing season, and that produces wheat, Cotton, Peanuts, and Beef.” They are looking to hire a Computer teacher, Secondary Special Ed teacher and likely a Foreign Language teacher.

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Ed. M. recommended an essay on ballistic home defense over at Oleg Volk’s site: Riots vs. pogroms. “Modern homes are not built as fortresses. They are only as strong as the people defending them.” OBTW, the photo of the man holding the antique riotgun is none other than SurvivalBlog’s own Editor at Large, Michael Z. Williamson.

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Some Canadian provinces attempt to create “back door” gun registries.

Jim’s Quote of the Day:

“The CDS [credit default swap] is probably the most important instrument in finance. What [the advent of the] CDS did is lay-off all the risk of highly leveraged institutions – and that’s what banks are, highly leveraged – on stable American and international institutions.” – Alan Greenspan, former Federal Reserve Chairman, May 2006

Note From JWR:

Today we present two more entries for Round 40 of the SurvivalBlog non-fiction writing contest. The prizes for this round include:

First Prize: A.) A gift certificate worth $1,000, courtesy of Spec Ops Brand, B.) A course certificate from onPoint Tactical. This certificate will be for the prize winner’s choice of three-day civilian courses. (Excluding those restricted for military or government teams.) Three day onPoint courses normally cost $795, and C.) Two cases of Mountain House freeze dried assorted entrees in #10 cans, courtesy of Ready Made Resources. (A $350 value.) D.) a $300 gift certificate from CJL Enterprize, for any of their military surplus gear, E.) A 9-Tray Excalibur Food Dehydrator from Safecastle.com (a $300 value), and F.) A $250 gift certificate from Sunflower Ammo.

Second Prize: A.) A Glock form factor SIRT laser training pistol. It is a $439 value courtesy of Next Level Training. B.) A FloJak FP-50 stainless steel hand well pump (a $600 value), courtesy of FloJak.com. C.) A “grab bag” of preparedness gear and books from Jim’s Amazing Secret Bunker of Redundant Redundancy (JASBORR) with a retail value of at least $300, D.) A $250 gift card from Emergency Essentials, and E.) two cases of Meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value) and F.) A Tactical Trauma Bag #3 from JRH Enterprises (a $200 value).

Third Prize: A.) A Royal Berkey water filter, courtesy of Directive 21. (This filter system is a $275 value.), B.) 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, C.) Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy. This is a $185 retail value, D.) A Commence Fire! emergency stove with three tinder refill kits. (A $160 value.), and E.) Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security.

Round 40 ends on May 31st, so get busy writing and e-mail us your entry. Remember that there is a 1,500-word minimum, and articles that relate practical “how to” skills for survival have an advantage in the judging.

Bugging Out About Bugs, by A.D.

After a few camping trips where I learned the hard way about preparing for local wildlife I started thinking about the bugs in my bug out plan and I’m not talking about technical flaws.  Previously I had focused much of my attention on what kind of gear to pack, how to provide food and water, and various routes to travel.  A trip to the Rockies, part of the AT and a few southeastern US adventures later I realized that people weren’t the only hostile forces I might encounter and I didn’t have much prepared to deal with the critters I might encounter.
 
Preparing for wildlife became a new priority for me when I reached an epiphany after visiting my sister in the southwest this summer.  While we have all seen the massive fires sweeping across the southwest, most of us have been fortunate enough to avoid their destruction.  Animals, however have had much of their habitat destroyed by the fires and as a result these animals have been forced out of the burning forests and into more populated (and better protected by fire suppression efforts) areas.  When the fires approached her town, so did many of the animals trying to escape the flames.  While my sister at most sees a coyote every now and then, the occasional scorpion and rarely a snake, all of these animals were prevalent throughout her neighborhood.  I admittedly have an irrational fear of snakes, but seeing so many in an area where I never saw one before made me a bit paranoid and hesitant to walk quickly without deliberately looking where I was stepping.  As we hurried to get things ready and get out of town I came to the realization that this may be just what we face in a TEOTWAWKI situation and I would need to be prepared to deal with it  In a disaster situation animals will be just as confused as humans and with widespread destruction animals may be out of their “normal” habitats.  With this soft awakening to the additional challenges I might face in a disaster, I began to take some of my camping experiences (and failures) and applying them to my bug out plan. 
 
My primary method of avoiding unnecessary wildlife is to properly select a campsite.  While this may seem easy for those of us used to hiking in state parks where there are designated camping areas mostly clear of brush with pre-dug fire pits, in the wild this can prove to be significantly more difficult.  If possible, I try to elevate myself off of the bare ground, if only by a few inches.  This not only provides some insulation in the winter from the cold but also helps to keep some of the bugs away.  I also try to clear the ground around where I will be camping.  Most snakes (so I’m told by my friends who actually like snakes) will avoid crossing clear ground if there is brush or concealment through which they can travel.  I will try to find a good branch and rake away the leaves and other cover, pick up the sticks and rocks and have several feet around where I will be camping.  Before clearing the site, I try to find a site that is not in a dry creek bed, is level and doesn’t appear to be close to a game trail.  I realize that in a survival situation the campsite selection will be a compromise between concealment and comfort.  In the case of concealment at night, those wondering around will typically look at the ground (think about stumbling around in the dark or walking at night with a flashlight)  you will focus where you are going and rarely look up.  If you can safely get up high in a tree and sleep there, this offers great protection from the ground critters and helps you avoid discovery.  I have laid logs between a forked branch and tied the logs down with paracord to keep everything secure.  This took a while, so when making camp be sure to start early to avoid working at night where your flashlight may give you away.  I further took a spare carabiner and clipped my belt to the lashed log assembly while I slept to avoid rolling off in the middle of the night.  A few tricks I learned to quickly cut the cross member logs to size was to find longer logs of the appropriate thickness, stick the long log between two trees growing close together, or a tree with a fork near the base, and then use the leverage of the fork holding one end and me pushing the other end of the log to break it to size.  This avoids needing to have an axe or saw and works great to manage the size of firewood.  The sound of a branch snapping is also less indicative of human activity when compared to the distinctive sound of chopping or sawing.
 
Another ritual I always follow while camping is to avoid the triangle of death.  While this isn’t always necessary, I still do it to ensure my safety and peace of mind.  The triangle of death is something I learned in the Rockies while working to keep bears away from my supplies.  The triangle is formed between where you suspend your food in the trees, the fire pit where you cook and where you store your dishes.  If you make camp inside (or very close to) this triangle, you have the highest chance of encountering any bear, critter or person investigating the smells of this area.  I always take note of what can be smelled and ensure that those items are not on me or near me when I am sleeping.  This includes things like film (has animal-based adhesive), deodorant, snacks I may carry in my pockets, Chapstik, medicines, stove fuel, duct tape, water bottles you drink out of while eating and even your survival knife if you used it to butcher game.  If you have a change of clothes available, I always cook and eat in one set and sleep in another set to fully minimize the smell.  I also don’t apply any deodorant, powder, Chapstik or other smelly substance after 3 p.m.  While this is not a hard rule, if you do this, the substance will likely absorb or lose its scent by the time you are sleeping.
 
If it smells I string it in a tree (old feed sacks and paracord work great for this).  If I ate out of it, I always wash it before going to sleep and leave it either in a tree or by the fire pit (this goes for stoves and fuel too).  While I thankfully have only had raccoons invade the triangle, I am hyper vigilant to avoid being woken up by something much more menacing.  Additionally I only eat right by where I cook and I never take food into my tent if I have one.  I try to stay 20 feet or more away from the triangle, and often build a secondary fire for where I sleep for warmth.  While this may separate you from you gear, you can consider camouflaging it with branches, a camo poncho to shroud items you place in the tree and by avoiding unnatural colors such as stark white, orange  and other bright colors.
 
If I am trying to conceal my fire, I will dig a Dakota fire pit.  I learned this configuration in Scouts and it is essentially two pits, one large to hold the fire, and a second smaller one to draw out the smoke.  A small tunnel connects the two to provide airflow.  Dig the pit deep enough to keep the fuel and the flames below the top edge of the larger pit.  This keeps the flames shrouded while allowing you to cook and heat yourself under cover.  If you need to sit a pot over the fire, the recessed flames allow you to easily place logs over the pit to support the pot.  I try to soak the logs so they don’t burn through and spill my food into the fire.  If i need to reflect more heat, I will stack logs to make a lean to which will reflect the heat and keep me warm while I sleep.  If you can’t dig a pit due to rock or hard soil, I usually try to find a fallen tree or large log and build the fire in the hole where the tree fell or against the large log with more logs stacked up around it to conceal some of the flame.  These areas near the fallen trees may be wet, so i will place bark, branches and other dry (even green) items in the pit as a base on which to build the fire.  While smoke is visible during the day, it is much more difficult to see at night so the primary concealment should be focused on the flames.  If visibility is not a concern, animals, including snakes, don’t like fire.  If I am trying to keep them away then I try to gather four times as much wood as I think I need and will usually end up going through most of it.  In my experience you can never have too much firewood.
 
After you have a good camp set up and a good night’s rest, you will likely need to move on the next morning.  If you took your boots off (I usually do to make sure my feet dry out) be sure to shake them out.  A trick I learned is to stretch your sock over the top of your boot and this will keep critters out while still allowing everything to dry.  I’ve found everything from millipedes to frogs in my boots so be sure not to ruin your escape by being in a hurry.  When going on foot, your feet are your wheels and you won’t get very far with a flat.  To allow my boots to further dry I typically try to have a pair of “camp shoes” with me.  While this does add some weight, I have found my Teva type sandals or croc type shoes to work best depending on terrain.  The crocs are a bit more difficult to walk in but weigh very little while the sandals allow me to hike in them if my boots should be destroyed.  I generally prefer the sandals but have had success with both.  As a general rule though, I never go barefoot or sock footed anywhere (even in creeks) and I try to keep my feet as dry as possible.  I generally safety pin my extra pair of socks on my bag and let them air out and dry in the sun while I continue to hike.  If my feet become too sweaty, I take off my boots, change socks, and let them air out a few minutes.  Wet feet are unhappy feet and if you don’t dry them out they literally rot away. 
 
Apart from that bit of foot maintenance be sure to watch out for the smaller bugs when getting up every day.  I had the unfortunate experience of waking up one morning covered in ticks.  I picked 58 off of me and itched like crazy for a week.  Hiking in the south I also encountered every southerner’s favorite itch to scratch, chiggers.  Without any anti itch medicine I had to do a bit of improvisation to stop the itching.  I have found that petroleum jelly will work, as will fingernail polish if you have it (I didn’t).  In a pinch, if you can find some clay soil and make a paste out of it, smearing the clay over the chiggers will smother them almost as well as the nail polish but you will have to reapply the paste as it dries out and cracks off.  Nothing beats a good pair of tweezers to get those tiny seed ticks off, just be sure to get them off as soon as possible to avoid the spread of any disease.  As a critter first aid kit, I carry a venom extractor (great for wasps and snakes) a pair of tweezers, a small container of petroleum jelly, some antihistamine, and alcohol wipes.  The petroleum jelly doubles as a great fire starter, blister bandage and lubricant.
 
Wherever you go, take some time to study the local wildlife before you go out.  This goes for preparation with your BOB as well.  A small guide can come in handy and help you understand which creepie crawlies are edible and which ones are better left alone.  Further, if you study, you can avoid certain areas in your routes known to house certain animals (mountain lions come to mind) and you can determine how to appropriately hike.  By this I mean whether you should be concerned with proceeding too quietly and surprising a bear or whether you should be using your hiking stick to probe in front of you for snakes or other painful surprises.  Knowing the wildlife in your area will come down to more than looking at territorial range maps found in the field guide.  While those various shades of red flowing down in a sweeping arc can give you a general idea of what you might find in your travels, you will have to be more specific if you want to really understand the animals in your area.  This will not only help avoid wasting your time hunting for an animal which isn’t there but also help you stay out of trouble should you encounter an animal on your hunt much larger than what you were anticipating.  You will have to make critical decisions while out hiking involving the local wildlife.  While that fat and juicy timber rattler would make a great meal, if you don’t have any experience with snakes trying to kill it might not be the best idea while you are bugging out.  If you aren’t sure if a particular frog is safe to eat, it may be better to look for another source of food.  An Apache foot snare can hold an animal very well if properly constructed but once the animal is held, you will still have to dispatch it.  If you can’t do it safely from a distance, it would be unwise to get close to an angry and injured deer trying to stick it with your knife or bash it with a log.  You should know what you are hunting for and how that animal can potentially hurt you.  After you successfully kill an animal, be mindful of where you kill it and clean it.  Be sure to clean it far away from camp and bury the waste if possible to minimize attracting animals.  If you accidentally spill something in camp when you are cooking or preparing the animal, urine will help to mask the smell of the animal (or any other spilled food) and avoid attracting additional predators. 
 
Be sure to keep the bugs out of your bug out bag by shaking out all of your equipment and being aware of what is around you and which bugs can ruin your day, especially if you have any allergies.  I realized the hard way that preparation involves being prepared for the animals, insects and other wildlife you may encounter on your journey.  As the Scouts say, be prepared.  Victory loves preparation.

Orientation and Situational Awareness For Your Kids, by B.P.G.

I am a victim. I am a spectator. I am luck incarnate. You would think based on my chosen career for over twenty years as a US Navy SEAL that I would be the poster boy of preparedness. You would think that now retired from the military and currently a security professional that I would have stockpiled food, weapons and supplies in preparation for the next Hurricane Katrina, 9/11 or other mass casualty causing disaster. Instead, like so many others I have assumed luck is on my side. I have assumed that because I have lived a life on the edge, constantly under the stress of death as the alternative to mission success that I am impervious to harm. I have stood by so many times like a spectator and watched as others suffered through earthquakes, tsunamis or terrorist attacks with little concern that it could be me next.

Sad and Disgusted
I have tragically lost well over twenty friends, teammates and compatriots [in combat and in training accidents] and still I didn’t feel the overwhelming need to prepare. I have become self reliant and so used to working with a team that has my back that little phases me now. I believed my self to be Mr. Lucky, to be luck incarnate.

That was until I had a family. I don’t mean the twentieth century kind of family, a wife, two dogs and a condo. I mean a real family, a lovely wife and two precious young sons and all that comes with it. A family that whether they know it or not relies on me to protect them. That regardless how liberal we have become the man of the house is still supposed to check on every bump in the night. I am now that guy, that husband, that dad the one who must be able to tell between a spider that will kill you and one that catches flies or stink bugs for us during summer. I have to be able to do more than recite my favorite sports team’s season stats or what new “app” we can get for our phones. My wife is a foodie and intent on buying some land and doing some small scale farming, perfect, I have the best kind of supportive and understanding wife. I have a 6 year old son who has to convince the neighborhood kids to play outside for more than 10 minutes, during spring and fall let alone winter. He knows how to shoot a traditional recurve bow and skies better than most adults. My youngest son is only 9 months old but he’s stout, strong and totally engaged with his environment and radiates confidence that belies his months. I have been blessed with the perfect supportive family. Several years ago it became apparent to me I can no longer afford to be a spectator, a victim and luck is not a preparedness plan.

No matter how perfect my family appears to be and is it is no SEAL Team assault element, nor do I want them to be. But, it has become clear that my family needs guidance, training and nurturing in reference to disaster preparedness. Any parent knows that a well thought out plan can easily go awry when you infuse young children into the mix. It is one thing for me to be self reliant, for my wife and me to discuss our future on a farm, it’s another thing to get small children to find the “fun” in preparedness planning, to become self-reliant themselves. It’s even more difficult to have them become willing team players in what seems to them an arbitrary endeavor. Ironically it was my 6 year old who has given me the greatest inspiration. At 3 years old he would yell out, as he sat snuggly in his car seat what we would later call “waypoints”. My son had, through a game we would play developed the, sometimes eerie ability to identify landmarks (buildings, towers, parks, ponds, restaurants, playgrounds, etc) and could tell you where we were in relation to home or other important establishments. As the “point man” for many years in SEAL platoons, forever being oriented was of the utmost importance not only to me, but to my teammates and to mission accomplishment. My son had clearly picked up this innate interest in knowing where he was either from me, his mom or he had it instinctively. But, where he got it from was unimportant to me. What was important was that I wanted to encourage him to refine this talent and use it as a stepping stone to discover other similar talents.

This is where the trouble started and where a major life lesson took place for me. How do I make disaster, death and mayhem look attractive and not scary to a child? How do I relate my oldest son’s love of the outdoors, chess and legos to hunting, self-defense and problem solving? Ok, admittedly that makes it sound pretty easy. In fact in the beginning it was pretty easy because where ever I went my son went. Whatever I did my son wanted to try which is the reason my son has been skiing for four years and he’s only 6. But, as he got older and the challenges or maybe the learning curve got steeper I found myself struggling to make it happen. The crazy thing is I have a background in education. Albeit it was training SEAL candidates, but I spent nearly 6 years of my life trying relate, convey and transfer life saving skills to what amounted to a bunch of kids. How then did it not come naturally when it came to working with my own son? That’s what this article is about, how to teach your kids essential life skills.

Being Oriented
In the remainder of this article I will go through the concepts and steps that I believe to be essential to nurturing our children’s natural desire to protect one another and their family and to be generally safe in daily life. The concepts are more child psychology and motivational methods than direct practical preparedness steps, but I believe them to be imperative to our children’s complete understanding of why they must prepare. The steps on the other hand are…

The first word in any parents training vocabulary should be encourage. We have all experienced that parent that believes he or she must instill drive in his or her children. That children need to be pushed from time to time or in some cases all the time. Encourage is the optimal way to build a lasting interest in, well pretty much anything. This seems like a very obvious concept but as my own experience has shown me, our best intentions to encourage can often wane as we the parent see our children lose interest in something, get distracted or even rebel against the activity altogether. I have a tendency to come in a little too intense when my son shows interest in something I believe to be highly beneficial. For example, my son showed considerable interest in wanting to learn how to shoot a bow and arrow. Great I thought he will take down his first white tail by the time he’s 8. I had it all mapped out. I went out and bought all the gear. Set up a 10 meter range in the backyard. For the first week he was into it, again it was easy. I didn’t have to do anything but say lets go shoot and he was ready. But, the interest soon subsided and out of frustration seeing my dream of a 7 year old taking down the families Thanksgiving turkey fading I started to use poor tactics. It was my amazing wife who reminded me of our family values, that we would never be derogatory with our children. If they showed an interest in something we would support and encourage them. The only steadfast rule we had was that if our sons started something they would see it through. For example if my eldest wanted to play soccer he would play the season not quit halfway through. If he didn’t want to play soccer again the next season so be it. And so it went with archery. I backed off, relaxed a little and when he did want to got out back and shoot I was full of encouragement and took the opportunity to connect with my son as much as pass on skills.

The next concept I believe to be essential to raising self-reliant, confident and skilled children is appreciation. I always like to say appreciation over compliance. If our children learn to appreciate how important being prepared for a home invasion or a fire is they are much more likely to act appropriately. By contrast, if a child has been taught to be compliant with the rules of what to do in case of a fire the compliant child will generally be devoid of freewill. Freewill you say? Yes freewill, I want my children to be problem solvers. I don’t want them to freeze when mom and dad are incapacitated and my oldest son needs to get his little brother out of a second story bedroom that’s on fire. My oldest has always wanted to know “why”. Once again he has taught me some valuable lessons by way of continually challenging me to help him understand how things work. He would sooner jump off a bridge than be immediately compliant on most anything especially if he doesn’t understand the importance of the task. I am sure he is not the only 6 year old that fits this mold. But, I am positive that it presents some unique challenges when trying to teach a child something that we as adults believe to be so intuitive. To promote appreciation be willing to “work with” your child. My wife is the queen of analogies. She can relate most any idea to an example, to illustrate an idea. I lack this skill, but I have worked to develop it. It’s just as important to help my sons appreciate how they can be of considerable assistance in even the most mundane things, like taking out the trash or peeling the carrots. It is even more important to show them how they are integral to the safety of their family. Think of ways to help your children see the importance of being an active part of planning, preparing, and getting through a stressful, life threatening situation. Your child’s appreciation and understanding of his/her role in your family, to problem solve and think on their feet may save your life.

The third and final concept of my philosophy towards teaching our children preparedness and self-sufficiency is for us as parents to be less objective oriented. Children, especially young children are experience oriented. That experiencing may take place at the beginning of an outing or lesson, at the middle or towards the end. For example, there is a 50 acre nature preserve two blocks away from my family’s house. My oldest son has dubbed this forested area the “spooky woods”. Although the woods have never scared him, from the age of 3 they have reminded him of the many fairy tells his mom and I read to him. It seemed to him that all fairytales took place in scary forests. My son and I have spent hours exploring the woods. A couple times I tried to plan and organized an outing with clear objectives (i.e. build a debris hut, a wood bridge over the creek, a solar still to collect water). I soon realized my first mistake was to plan anything, to organize anything. What I wanted to do was of little concern to my young son once he found a dead raccoon to poke with a stick, a frozen creek to throw rocks through or if he just wanted to sit and pick the bark off some deadfall. What I learned from this was to be ready. I learned to carry a pack with the makings of a bow drill fire starter or a snare. I became less interested in learning a specific skill, meeting an objective or making a particular destination and more about the experience. I allowed my son to drive where we went and what we saw and experienced. I stayed open enough to use the opportunities my son presented me to pass on knowledge. On one outing we were discussing the merits of being observant. I wasn’t using any specific examples from our outing, just relaying the idea of stopping every so often and taking a real look around. I was trying to extol the ideal that you miss a lot when you put your head down and just follow the trail. Within 15 minutes of the end of our conversation my son spies what he thinks looks like the tip of a spear poking out of the fall leaf pack. As he digs through the leaves he finds the right antler of an 8 pointer. My sons still proud of that find and reminds me often how he used his superior observation skills to find such a treasure. The other amazing attribute of this concept is that for us as parents being less objective oriented is much less stressful, much more peaceful and once again affords the us to connect with our children on a much more intimate and personal level.

It’s probably comes as no surprise to any of the readers that orientation is vital to survival, preparedness and sustainability among many other things. The following are

Steps to Orientation

– Start with learning land marks and their importance – situation awareness
– Fun with maps
– Give them the tools to navigation
– Observation drills
– Relate to other activities
– Travel

Letter Re: A Self-Sufficient Vermonter

Hi James, 
Thank you for SurvivalBlog. It’s an incredible resource. I thought you and your readers mind find this interesting:

There is a man that lives with his family on his 24 acre parcel of forested mountain in Vermont, completely off the grid using hydro-electric and solar for power and a natural spring for water. He builds everything himself, including his house and workshop. His land is mostly accessible only on foot (though he has cleared a road — by hand). This guy is building a giant mechanical robot. Seriously. But the best part is that all of this is documented in his dozens of videos on YouTube. His intelligence, humor, self-reliance, and creativity make the videos very instructional and entertaining. I stumbled across him a message board.  His progress through the years and the story of what eventually happens to him is quite fascinating.

All the best, – Alex C.