Jim’s Quote of the Day:

“Be not afraid of sudden fear, neither of the desolation of the wicked, when it cometh.
For the LORD shall be thy confidence, and shall keep thy foot from being taken.” – Proverbs 3:25-26 (KJV)

Notes from JWR:

I just got confirmation that I will be a guest for two hours with George Noory on Coast to Coast AM, in the wee hours. My segment is scheduled for 1 a.m. to 3 a.m. Eastern time on Friday, September 7th, 2012. (That is 10 p.m. to Midnight Pacific time on Thursday, September 6th, 2012.)

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Today we present another entry for Round 42 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), F.) A $250 gift certificate from Sunflower Ammo. and G.) A $200 gift certificate, donated by Shelf Reliance.

Second Prize: A.) A Glock form factor SIRT laser training pistol and a SIRT AR-15/M4 Laser Training Bolt, courtesy of Next Level Training. Together, these have a retail value of $589. 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 42 ends on September 30th, so get busy writing and e-mail us your entry. Remember that there is a 1,500-word minimum, and that articles on practical “how to” skills for survival have an advantage in the judging.

Prepping with Fangs: Dogs for a Survivalist, by Dale in Northeastern Tennessee

They can move faster than any man, their loyalty suggests an inborn canine bushido, their senses seem to border on the supernatural, and their situational awareness chart does not include condition white.  They are the creatures you want to sleep at your bedside, walk beside you, and watch your children.  While the choices available for study cover a broad range for the serious survivalist; and the options for raising animals include many worthwhile creatures, consider the canine as an early pick.  Long before we finished moving to our retreat I was already plotting the pros and cons of various parts of the property and outbuildings.  Too much woods for cows to graze, just enough grassy hills for goats, garden here, greenhouse there, new bridge over there.  The list of possible projects was, (and still is) a never ending source of satisfying improvements.  One of the earliest undertakings in our endeavors towards self-sufficiency was raising dogs.  The goal was to get far past the learning stage during the pre-collapse world and maintain a selection of working dogs in a normal society.  During a crisis, the dogs will be used for protection and barter. 

The first real choice that had to be made was in a specific breed of dog.  After much study I narrowed the selection down to three breeds; the German Shepherd, Doberman Pinscher, and American Bulldog.  All had key traits in common I found important for a survivalist dog owner.  All had a high level of intelligence, trainability, and protectiveness with the size, speed, and courage to back it up.  I considered each breed in light of how we would need to live together with our family in a long term collapse / worst case scenario.    The  German shepherd was the first of the three to be marked off the list for one reason: hair.  The German shepherd sheds once a year for 365 days in amounts that exceed all bounds of belief.  I wanted dogs that can stay by my side 24/7 but building an extra solar array just to power a vacuum lest we all drown in dog hair wasn’t going to happen.  Note that we live in Tennessee and rarely deal with bitter cold, in less mild climates I would’ve needed dogs with the German shepherd’s protective coat.  If dog hair is not an issue for your situation, that a German shepherd requires no ear trimming or tail docking makes them a stronger pick.    

I next looked into the American Bulldog (not to be confused with the more common English Bulldog), a breed once very popular in the deep South but became nearly extinct during WWII.  Despite my interest, I was unable to find breeders that I felt were trustworthy and had any puppies available within a reasonable distance.  My other concern was that they have a less well known reputation compared to the other two picks, in a barter economy I wanted a highly recognizable, commonly known breed.  Last of the top three first considered breeds was the Doberman Pinscher.  I was at first hesitant due to the need for a professional vet to trim the ears to get the Doberman “devil dog” look; but decided to pick function over form should TEOTWAWKI ensue.  A Doberman without cropped ears is readily identifiable, unlike the American Bulldog who gets a “what’s that?” response in many cases. 

I spent several months picking my first pair of dogs from separate bloodlines then training them with the help of an experienced dog handler/breeder.  The joy of living with such intelligent and graceful creatures I soon found to be a tremendous boon that transcends the planning and training of the more mundane aspects of survivalism.   Lessons learned along the way:    When one of you dogs eats an entire bath towel bed, you get to spend $1,700 at the vet.  When you quit using towels as beds and think straw is a good idea for a bed while they are in the kennel (such as when you are at work), its not.  It is a huge mess and can introduce mold, bugs, etc.  Dogs are not goats so save the straw for animals that produce cheese or steak.  A 2’x4’ outdoor panel secured over a 2”x4” frame will have plenty of give for a dog to be comfortable on.  Add a dog bed heater to the underside and your dog will snooze happily on it.  The inexpensive heaters stay about 110 degrees and draw about 40 Watts.  Use small slats of wood to keep the heater in contact with the underside of the flexible panel.       

When your female is in heat, the chain link fence dividers in the kennel will be ripped apart by your male, you will then have puppies earlier than you wanted.  When you make the chain link fence three layers thick to keep your male from ripping them apart and your female is in heat, your male will rip the door off of the kennel and you will then have puppies earlier than you wanted.  Light chain with carabineers securing the door in a “Z” pattern seems to work.       

Other than the aforementioned surprises, everything went exactly as planned; good thing we started learning sooner rather than during a crisis.  A 20’x 60’ concrete slab under a roof to the side of the workshop proved to be a perfect location for a dog lot.  I partitioned it off with commercial dog kennel panels, reinforced on each side with an extra layer of fence.  A brick at the corner of each interior kennel section makes it easy to hose things down (a big plus when one kennel is full of puppies). I added lots of insulation to the ceiling and enclosed the walls with OSB and thrift store windows.  New shingles ended some rainwater leaks.   During the first winter after setting up the dog lot, I used an electric space heater to keep the temperature above 55 degrees.  The power bill was unacceptable!  The second year I insulated the roof which was previously plywood and shingles and switched from straw to heated wooden beds.  I kept the space heater set at 45 degrees but it proved to be largely unnecessary.  A large sheltered dog lot will make life much easier.  Don’t skimp and just throw a tarp over some 6’x6’ chain link fence.  Your dogs need protection from weather and room to play.  A lone dog is a little lot will be miserable but several dogs with room to exercise will be more content when they need to be out from underfoot.  When there is company, or when we are cooking, and certainly when pressure canning; all dogs go out to the dog lot.    

Cost: Kennel and dog lot remodeling ran $2,000.  Each dog was about $1,000 after ear trimming, shots, etc.  Each dog consumes about 500 lbs. of dry dog food per year, their diet is supplemented with eggs from our chickens, leftover meat from supper, and the occasional canned food as a treat.  I use Black Gold brand dog food in the black bag from my local farm store.  This amounts to $250 per dog each year.  Dry food in the bag stores for about a year and a one year supply for two dogs will stack on two standard pallets without being so tall as to be a hassle.  

Puppies:  After we’d had a bit more than a year of training our adult dogs we started raising litters of puppies.  Since the dogs were an exercise in prepping from the start, the puppies were an extension of this.  The first litter was a learning experience but over time the puppies have paid for the initial investments.  The best idea on puppy for prepping came from my wife.  She was looking at our then current “to buy” list of gear and noticed several firearms.  “Not everyone has the money to buy an expensive purebred puppy, but some people might have some guns they would trade instead.”  Now any time we have puppies available, we let people know if the price is too high for them, we’ll consider “an old deer rifle or something” as part of the deal.  As a survivalist this has been a huge benefit.  For example, last litter I ended up with a H&K MP5A5 look-alike in .22 LR.  I took it to a gun show and swapped it for an AK for my wife.  From other puppies I kept a very nicely modified Mauser and a .243 Savage.  We live close to the border of another state so I do take care not to deal over state lines, not that I honestly suspect an alphabet agency is looking for dog breeders to make examples out of, but I feel it is only prudent to be above board.  So far I have found that most of my customers have previously owned Dobermans, and are either in law enforcement or military families.  The most satisfying puppies were the ones that have gone on to be therapy dogs for disabled veterans.  In a long term crisis, and even post crisis, I suspect there will always be a market in the barter economy for a recognizable working breed of dog.  Practicing up on breeding, training, and trading has had a high initial cost and been time intensive relative to our other prep work.  Pure “dog time” runs about 1-1½ hours a day during puppy raising months, when the puppies are sold or the next litter still on the way I focus more heavily on training the adults.   

Whatever breed you select, be sure to do plenty of homework before you purchase your first dog.  Know what health problems are common in that breed.  Find out what problems come from genetics and if the parents have been tested; don’t discover that at age five, your dog comes from a line of dogs with terrible joint problems.  Pick a line that dies after a very long life rather than one that falls apart and has to be put down young.  Get your property ready, be it dog lot, kennel, or crate for housebreaking inside.  Have collars and leashes ready with spares for the ones that get chewed up or lost.  Find out what brand of food the breeder you’re purchasing from uses and have a supply of that.  You can gradually switch over to a different brand but have plenty on hand before you get home.  AKC has plenty of good information on basic training and breed specifics that you will want to consider before getting your first dog.  If you desire to have your dog professionally trained for protection, expect the trainer to ask you to wait until your dog is 18 months old or more so that they have had time to finish developing properly strong bones and an adult temperament.    

Be good to your dogs, and before you hand over a puppy to their new master, look them in the eye and know that those brown orbs looking up at you are going to change someone’s life forever.

Letter Re: Gun Shopping for Self-Defense

Hello
I just wanted to respond to the article by Chief B., and take the process of choosing a handgun a little farther. I’ve been shooting pistols for at least 30 years and teaching approximately for 15 years. I teach from the philosophy that training/practice beats Everything; it beats the caliber size argument, number of rounds etc…

There are several things I have learned over the years. If a person (particularly ladies) doesn’t like the feel of a pistol they will not shoot it enough to become proficient. Over the past four years I have found that ladies are doing better with semi-autos then revolvers. Generally speaking a semi-auto is going to have the feeling of less recoil, be lighter in weight, point more naturally, have a more ergonomic grip, better factory sights and a lighter trigger pull.  When a student is having a hard time, I’ve switched them to using either a Springfield XD or Glock.  After a few rounds to get used to it, their groups have gotten tighter, and their confidence level goes up then they start to enjoy it more which means they will shoot more on their own and they come back for more training. All this translates into a better shooting/training experience which will result in them being better prepared in the case of a violent confrontation.

Also, properly fitting a pistol to the individual is important.  The size of the grip is important in that it effects the ability to control recoil particularly shooting one handed. With a proper high handed grip where the bones of the forearm are aligned with the barrel this affects the placement of the index finger on the trigger which in turn effects trigger control. Size of the trigger guard may be an issue for those with meaty fingers. The grip angle for natural pointing of the pistol is a big issue and can really make a difference in getting back on target for those follow up shots. Barrel length is a factor for a balanced feel to the shooter (especially after long training sessions) and I have found may make a difference in follow up shots for the new or untrained shooter. All of these factors when considered will make the shooting experience and training more enjoyable. This is especially true for new shooters and will even help a more experienced person that hasn’t considered these aspects.

My long term students and others that I train with, have found that having a .22 caliber rimfire version of our regular pistols/battle rifles is an invaluable to our training. It allows us to train into and gain the muscle memory needed at a much less expense and with out the effect of recoil, then we cam move up to full power ammo with a much better success rate.
Sincerely – Rgrey

Economics and Investing:

Some of the Really Bad Things That Could Happen if You Do Not Prepare tor the Coming Economic Collapse. (Thanks to Lee M. for the link.)

Reader H.L. suggested this piece over at Zero Hedge: In Greece, It’s The Police Vs The Riot Police

Mark I. sent: The 29 Ugliest Charts In The World

The printing press is running hot, but where is inflation and how will it affect gold?

Items from The Economatrix:

Bernanke Says Fed Ready to Act But Short on Specifics

“The Economy Stole My Retirement”

Oil Has Peaked But No Relief at Pump Likely Soon

Odds ‘n Sods:

From the trailer, this one looks even more prescient: Atlas Shrugged Part II. It will be released on October 12, 2012.

   o o o

Mike M. mentioned that there are some useful links at this Patriot Post page: Disaster Preparedness Resources & Guides

   o o o

F.G. sent a link to an amazing short video of an African lion hunt. The final sequence shows the importance of shot placement. Now that was a close call.

   o o o

Speaking of Africa, here is the latest news from Mugabestan: War vets reject draft constitution.

   o o o

Is This The Most Unsafe Car Of All Time?

Notes from JWR:

This is the birthday of Lieutenant General Claire Lee Chennault (born September 6, 1893.) Some of us have not forgotten the bravery and sacrifices of the AVG‘s pilots and ground crew.

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Today we present another entry for Round 42 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), F.) A $250 gift certificate from Sunflower Ammo. and G.) A $200 gift certificate, donated by Shelf Reliance.

Second Prize: A.) A Glock form factor SIRT laser training pistol and a SIRT AR-15/M4 Laser Training Bolt, courtesy of Next Level Training. Together, these have a retail value of $589. 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 42 ends on September 30th, so get busy writing and e-mail us your entry. Remember that there is a 1,500-word minimum, and that articles on practical “how to” skills for survival have an advantage in the judging.

Gun Shopping for Self-Defense, by Chief B.

I have read article after article on gun reviews, the best pistol to buy, how to fire one, etc.  However, what about those who don’t even know where to start on what type of gun they need? I will give a brief synopsis on where to begin when buying guns for self-defense.

First, we need to look at what exactly you will be defending yourself against.  For self-defense away from home, there is no better protection than a pistol. But before you go and buy yourself a sidearm and pack it inside your waistband, be sure you know the legalities of where you are traveling. Most states require a Concealed Carry Permit (CCP), which allows you to carry a concealed weapon in public; minus a few restrictions such as government buildings and places that sell alcohol. Some states don’t allow you to carry at all, while some don’t even require a permit. An easy way to learn about CCPs is to visit www.usacarry.com.  You will find nearly everything you need to know about CCPs for each state and then some.

Many states will require you to complete a basic pistol shooting class before you can obtain your CCP. This class is taught by instructors certified by the National Rifle Association. To locate a class nearest you visit www.nrainstructors.org . Here you can find information on a plethora of courses offered by the NRA. Even if you don’t plan on obtaining a CCP, it is still beneficial to attend one of these courses. I recommend it for both beginners and also veterans who haven’t completed the course. Many veteran shooters do not use proper shooting techniques such as breathing and stance that could improve their precision and accuracy. The course normally ranges in price from about $50-$150 and requires about 50-100 rounds of ammunition. Many places will even provide a weapon, but ensure that you obtain all details for the class given at each specific location.

Whether you intend to obtain a CCP and carry in public or not, you will have to determine what type of pistol you need.  You need to decide for yourself what is more important in a variety of different areas. While revolvers are the epitome of reliability, they may not be the best choice when you need to fire more than six rounds in a short amount of time. Revolvers are very easy to use and less complex than semi-automatic pistols, especially for the new gun owner.  Malfunctions rarely occur and if they do they take mere seconds to fix.

I recommend a semi-automatic pistol due to the number of cartridges they can handle and their ability to be concealed. There are hundreds of different handguns out there and everyone seems to have their own opinion on which is best. Let’s first start with the caliber required. I would not recommend anything smaller than a .380 caliber for self-defense. While there may be the urge for a new gun owner to purchase a .22 caliber handgun, I highly recommend against it for self-defense. It just isn’t big enough. Can it kill someone? Absolutely.  But it can also put you in a very difficult situation with someone who carries something larger. The best utility semi-automatic pistol out there for both the newbie and the veteran is the 9mm Luger. Ammo is plentiful and cheaper than most ammunition out there due to its massive popularity. There are many makes and models of the 9mm so again it depends on what you what. Are you looking for easy concealment or is dependability your main concern? I could write on this topic alone for days, so instead I’ll get right to the point. Go to a gun store and get a feel for whatever gun feels best to you. While I personally recommend the Glock 19, there are many others guns that are equally dependable and effective. The .40 caliber is also a popular choice for many handgun owners, as well as the .45. I suggest you do some research on your own to learn what’s best for you before visiting the gun store. If you believe bigger is better, then you might want to consider a .44 magnum or 10mm. The 10mm is found in many semi-automatics but unless you want to carry around a seven pound Desert Eagle, you will have to opt for the .44 in a revolver. I personally own three handguns: a Ruger .380 ACP which I use for easy concealment, a Glock 20 10mm which I use for self-protection and  hunting, and a Beretta M9 9mm. I am an Army NCO with 17 years of service and carry my assigned Army M9 during my deployments. There is no better way to be proficient with the weapon you are carrying in combat than owning it and firing it regularly. Owning my own Beretta M9 allows me to do just that. Whatever you decide, remember that everyone has their own opinion. With a little bit of research and a visit to the gun store, in the end you will be much better off with any handgun at your side than none at all.

Now let’s talk about home defense. Again, there are many variables here. Do you live in a rural area on 100 acres or in an urban area such as downtown Chicago? To me there is no better weapon for self-defense inside your home than a 12 gauge shotgun armed with 00 buckshot. You’re talking about a massive amount of fire-power and not much room for an invader to escape at short distances. Deciding which shotgun to buy once again goes back to exactly how you want to use it. If you will also be using it for hunting, what will you be hunting for? Turkey? Deer? Waterfowl? There are guns/barrels designed for all of them and if money is limited you may want to choose a shotgun that will suffice for all. If you hit an invader with some 00 buckshot, I highly doubt he or she will know the difference in what brand of shotgun it was fired from. To me, you can’t go wrong the venerable Remington 870. You can configure it with many different barrels suiting your desired target and it can be purchased at a reasonable price. For dependability you can’t go wrong with a Benelli Nova Pump, but if price is your main concern then consider a Mossberg 500 or 930. All of them will do the job, but realize there is a difference in reliability. A pump-action shotgun is going to be more reliable than a semi-auto, not to mention less expensive. But, if your main reason for purchase is home defense, you may want that auto-loader that will throw massive amounts of lead as fast as you can pull the trigger. For this, I recommend none other than the Saiga 12. The Russian-made semi-auto shotgun can be loaded with 12 to 25 round drums and completely unloaded within seconds. The amount of damage one of these can do is terrifying. To watch a quick video of what the Saiga 12 is capable of, then watch this YouTube video.

If you live in a rural area, you may need to reach out a bit further to hit your intended target. For this you will need a rifle. Like shotguns and pistols, rifles come in many varieties.  A bolt-action rifle such as the Remington Model 700 is going to be extremely accurate and reliable, but for home-defense I recommend a semi-auto such as the .223/5.56mm caliber. This is one of the most popular rifle rounds in the world. Ammunition is plentiful and available at a very reasonable cost. It is the round used by most Soldiers in the Armed Forces and its dependability, accuracy, and lethality has been proven many times over. For this weapon I recommend either the Ruger Mini-14 or one of the many brands of the AR-15. Either one of these will accommodate 30-round magazines and have an effective range of about 300 yards, although capable of being lethal at further distances. If you want a bit more punch, I recommend the AR-10 variant called the Remington R-25. This is one of the best weapons I have ever fired but it comes with a hefty price tag. It is available in the .243 Winchester, 7mm-08, and .308 calibers. All of them will get the job done. The .308 caliber is a very popular round and is used in many weapons by the United States Armed Forces. It is also a very effective cartridge for medium-sized game hunting.

I know there may be a lot debate on which gun is better than another. That topic is very subjective. My intent is simply to give someone the basics and a couple of recommendations for those who are just getting started in the self-defense arena of prepping. Don’t just take my word for it; use this as guidance and do some research for yourself. There are many solid gun reviews on this blog such as: “Pat’s Product Review: The Saiga 12 Shotgun” written on March 28th 2011. You can find a review for nearly every gun you are considering to purchase. I recommend reading reviews once you have come to the conclusion on what type and caliber, not brand, of gun you wish to purchase. Be careful on what reviews you read. Ensure the review is not written from someone who has a vested interest in the product itself.  Many of the best unbiased reviews come from none other than SurvivalBlog.com.

Whatever you decide, self-protection for your assets in a SHTF scenario is a must. It doesn’t do you much good to have a year’s worth of food, water, and other necessities if you have no means of protecting them from unprepared citizens.  Visit your local gun store, do some research, and shop around for the best deal once you are decided on the gun you want. Many times the asking price is negotiable despite the price on the tag. Also, shop around online for guns. While I am an advocate of supporting local businesses, buying guns online is a lot easier than you may think. Simply find the gun you want to purchase from an online gun retailer and have the gun shipped to a local Federal Firearms Licensed Dealer (FFL). Most gun stores will accept firearms in for a nominal fee, usually about $25. Once your gun arrives at your chosen FFL dealer, you will complete the paperwork and background check, pay the transfer fee, and be on your way. It’s that easy. I have completed many transfers from guns I have purchased online and it is much easier than I ever thought it to be. Most online gun retailers have an FFL finder integrated into their web site, but there are many ways to find a local FFL dealer such as FFLGunDealers.net. Once you locate an FFL dealer, contact them to ensure they accept incoming transfers and ask them what their fee is. FFL dealer’s fees vary just like the price of the gun itself.

It is never too soon to start purchasing the firearms you will need. With the current economy, guns are continually going up in price, not down. Ammo is continually rising in both price and demand. Once you purchase your gun, do not skimp on ammunition. Buy hundreds if not thousands of rounds. That gun will be worthless without the ammunition it needs to fire. Any extra ammunition you have may be used as a barter tool. Just keep that last statement in mind; there will be a lot more demand for .223 or 9mm than .25-06 or .460 Magnum. The latter are decent cartridges, but good luck finding ammo when the SHTF-or anyone to barter with that needs them.

Even if you never need to use your guns for self-defense, they make good financial investments in today’s low-yield savings account economy. There are many politicians on Capitol Hill lobbying to reinstate the 1994 Federal Assault Weapons Ban (Public Safety and Recreational Firearms Use Protection Act) signed into law by President Clinton that expired in 2004. Many guns available now will likely become banned in the future and would sell at a premium. Buying the right guns ensures that you may still have a high-yield retirement account in a future inflationary scenario. No matter your reasons, being an educated gun owner always pays off.

Letter Re: State Government Debt Levels

James:
Reader “X.” wrote an article Re: State Government Debt Levels, in which the author makes the case that the US income to debt ratio is approximately 1:1. I think the author mixed facts to come up with a mathematical equality where none exists.  I repeat in totality the paragraph where this is stated:

“The trepidation most of us feel when thinking of the current level of debt (not to be confused with deficit) is likely well-founded.  Individuals tend to think of things in relation to themselves; in other words, I earn $56,000 yearly, and I owe $212,000 on my home, and perhaps $12,000 on a car loan.  So my yearly income relative to my total debt (good/bad/ugly) is 1:4.  So we tend to use a similar ratio when thinking of national debt.  As such, we would look at the yearly salary of our State (U.S. GDP  $15 trillion (CIA World Factbook 2011)) and a debt of $15.9 trillion (http://www.usdebtclock.org/ ), rendering a ration of 1:1.”

The yearly salary of the United States Federal Government (‘the State’ as the author rightfully labels) is not the GDP but the tax receipts that it imposes (takes by force) from the citizens and companies that it maintains a direct taxing authority).

Not to get entangled in an argument of where the numbers come from (because there are so many sources that do not “match up”), in rough terms the federal government has collected in taxes the past few years about $2.3 trillion dollars per year.  Certainly a lot of money, but when matched against what the government is spending each year, about $3.7 trillion dollars, one can see that the debt of the US is not decreasing but that it is increasing. In the current administration, the published debt has increase over $5 trillion dollars to where it stands somewhere near $16 trillion dollars.  (This of course does not address the shadowy ‘unfunded liabilities’ that are estimated between $61 trillion (USA Today) to $84 trillion (National Center for Policy Analysis).  Who knows where the number truly lies?  It is certainly a big number.  I digress.)

I suggest it is the tax “revenue” of the government which should be used in the income to debt ratio.  Taking the $2.3 trillion in “salary” that US Federal Government has at it’s disposal, and the $16 trillion of “public” liabilities, I would suggest that the income to debt ration of the country is not 1:1 but 1:6.95.

And then of course is the original subject of the article the author was referring too, many of the individual states and commonwealths have their own additional problems.  Using the author’s example of California with a $16,000 per capita “obligation” then the families liabilities would not be $224,000 (house) and $12,000 (car loan) but an additional $64,000 (state of California) raising their ratio from 1:4 to 1:5+, and if we really look at this and make a generous assumption that the household gets to keep 70% of its income (the rest of course is tax paid to various taxing authorities) the ratio now becomes 1:7.1.  And because I don’t have the time to figure it out, what is the ratio when factoring in the federal indebtedness?

Now the 1:6.9 matches up with the 1:7.1, but not really in anyone’s favor.  Hah, I am mixing my own results to create an “equality” where none exists. 

Okay, I took the time.  $16 trillion divided by every man, woman, and child (315 million rounding up) is almost $51,000 per person worth of “federal obligations”.

The family of four from California really (using gross and not net) $56,000 per year match up against $504,000 in indebtedness for a ration of 1:9.

And to think in states like California the debt burden will only increase, and in the US unless something changes the debt will only increase.

Who wants to do the math on a welfare mother with 6 children and no income? No mortgage or car, that is easy: zero.  But $16,000 x 7 plus $51,000 x 7 and now you are talking real money:
$469,000 of public obligation with no money to pay.  Oh, that’s right, you and I get to pay for those people as well. There is no ratio with no income.  Just an infinite debt in that instance.  So, to truly determine a families income to debt ratio, it has to be determined if they are a “maker” or a “taker”.  Makers have income, so a ratio can be calculated, takers do not.  Suffice to say the money will have to come from somewhere.

Thanks for listening, sorry for the rambling.  Do we have to wonder why a lot of the articles in the Economics and Investing section are so downbeat? – Old Dog, Wisconsin

Economics and Investing:

Peter Schiff: The real fiscal cliff.

Bloomberg reports from Japan: The End of a 1,400-Year-Old Business. (Thanks to R.N. and G.G. for the link.)

B.B. sent: $16,015,769,788,215.80 – $5.4 trillion added under Obama. JWR’s Comment: Don’t just blame Obama. It is Congress that holds the purse strings!

Also from B.B.: Supermarkets being looted in Spain

Items from The Economatrix:

S&P 500 Trims Loss Amid Speculation Europe to Take Steps

Manufacturing in US Shrank in August for Third Month

Investors Assets to be Stolen in the Coming Collapse

China Launching Gold-backed Worldwide Currency

Odds ‘n Sods:

One last reminder: I will be a guest speaker (via teleconference) at CharlottePrepCon, on September 8th.

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A follow-up with some good news from England: No charges to be brought against farm couple who bravely fought off burglary gang

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Former Detroit Mayor Kwame Kilpatrick’s trial on additional corruption charges is scheduled to begin today with the second round of jury selection, under a 38-charge indictment. Please pray for responsible and ethical government at all levels in our nation, and that those who have been corrupt would be brought to justice and repent. OBTW, the NRA has compiled a list of Bloomberg’s Bad Boys. And here is the latest headline about a MAIG member (not yet cataloged by the NRA): Trenton Mayor Tony Mack federal probe: FBI raids homes of mayor, brother, supporter.

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Freeze Dry Guy is now taking pre-orders for the new Mountain House “Bug Out Buckets.”

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Reader S.T. suggested a manual that is available for free download: FM 3-05.230 – Special Forces Tactical Facilities