Odds ‘n Sods:

C.N. sent this: Government pays for empty flights to rural airports.

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Tam had some great commentary on the trend toward über-tactical training that is sacrificing safety: Big Boy Rules. (About 1:30 into the video that she found, things get just plain foolishly 360-degree suicidal –with copious and un-necessary friendlies downrange, et cetera.)

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“Apartment Dweller” suggested some clever commentary on choosing strong computer passwords.

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Wilson Solar Grill Stores the Sun’s Energy for Nighttime Fuel-Free Grilling. (Thanks to Drew for the link.)

Jim’s Quote of the Day:

“And as ye go, preach, saying, The kingdom of heaven is at hand.

Heal the sick, cleanse the lepers, raise the dead, cast out devils: freely ye have received, freely give.

Provide neither gold, nor silver, nor brass in your purses,

Nor scrip for [your] journey, neither two coats, neither shoes, nor yet staves: for the workman is worthy of his meat.

And into whatsoever city or town ye shall enter, enquire who in it is worthy; and there abide till ye go thence.

And when ye come into an house, salute it.

And if the house be worthy, let your peace come upon it: but if it be not worthy, let your peace return to you.

And whosoever shall not receive you, nor hear your words, when ye depart out of that house or city, shake off the dust of your feet.

Verily I say unto you, It shall be more tolerable for the land of Sodom and Gomorrha in the day of judgment, than for that city.

But beware of men: for they will deliver you up to the councils, and they will scourge you in their synagogues;

Mat 10:18 And ye shall be brought before governors and kings for my sake, for a testimony against them and the Gentiles.

But when they deliver you up, take no thought how or what ye shall speak: for it shall be given you in that same hour what ye shall speak.

For it is not ye that speak, but the Spirit of your Father which speaketh in you.” – Matthew 10:7-20 (KJV)

Note from JWR:

Today we present another entry for Round 36 of the SurvivalBlog non-fiction writing contest. The prizes for this round include:

First Prize: A.) 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 B.) Two cases of Mountain House freeze dried assorted entrees in #10 cans, courtesy of Ready Made Resources. (A $300 value.) C.) A 9-Tray Excalibur Food Dehydrator from Safecastle.com (a $275 value), D.) A $250 gift certificate from Sunflower Ammo, and E.) An M17 medical kit from JRH Enterprises (a $179.95 value).

Second Prize: A.) A Glock form factor SIRT laser training pistol. It is a $439 value courtesy of Next Level Training. B.) 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, C.) A $250 gift card from Emergency Essentials, and D.) two cases of Meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value).

Third Prize: A.) A Royal Berkey water filter, courtesy of Directive 21. (This filter system is a $275 value.), B.) Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy. This is a $185 retail value, and C.) Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security.

Round 36 ends on September 30th, so get busy writing and e-mail us your entry. Remember that articles that relate practical “how to” skills for survival have an advantage in the judging.

Foraging: How To Make Yourself Starvation Proof, by Mike F.

The following are some reasons for learning how to identify, harvest, and prepare a few wild plants for food:

  • Crop failures might make foods too expensive to purchase, or scarce due to lack of production (if producers can’t afford to grow it, and manufactures can’t afford to process it you probably won’t find it on a shelf)–
  • Lack of hunting/trapping wild game- you are not always going to bag a squirrel, or catch something fishing, coming back empty handed is going to happen sometimes. Deal with it- even setting out 10 snares you ‘might’ get something, but you might not. most likely when you need it most too.
  • Scarcity of wild game (over hunting as competition to hunt after a disaster or emergency is going to be fierce, even if laws forbid hunting people are going to try and eat, as seen in a recent Brooklyn New York park where vagrants were fined (Lord knows why, they have no money! ) for fishing, poaching in a public park.  If they were stealing plants I doubt anyone would have noticed, or cared.)
  • The obvious breakdown of food sources, no power for super markets or local sources of food.

The first option is to stock a good amount of storage food for the bad times. That food will eventually diminish or be consumed at some time- what if you could help stretch those rations by eating common weeds? It takes no resources to plant them and very little energy to hunt/harvest them (same reason early hunters became farmers when game was scarce.) Find the most cost economical way to expend the least amount of energy with the most yields, best results equates to having a full belly with less work. One thing I won’t recommend is going in to an area and stripping it of wild food, be sure to only take what you really need, and let some plants live long enough to reproduce or your local area might become a barren wasteland. This should be common sense, but I think it’s worth mentioning.

It’s important to be knowledgeable about local wild foods – but where to find out information on what’s good to eat?
A couple of easy ways to gain knowledge on wild plant foods.

1.      Reading books- libraries are free, watch DVDs (some you can borrow from the library), check the internet if you have access, use the library’s computer if you don’t, –youtube has free information and how-to videos.

2.      Go to someone who knows and have them walk you around on a weed walk! Nothing beats first person experience and learning about something hands on.

3.   Ask someone older then you about sharing this info if they happen to know anything about farming listen to what they have to say about growing your own food. (just remember we are seeking common weeds that most back yard gardeners would be annoyed at and likely destroy, then not eat.- well, maybe if you have cattails in your back yard, you have more problems that this article can cover.) 

The books I’ve seen and read I purchased from Amazon, Borders, Barnes and Noble, and checked out from the local library. The DVD I found online was from a woman who lived in upstate New York, and moved to Arizona.It is called Linda Runyon’s Master Class on Wild Food Survival. I do respect and like youtube videos called the ‘Eat the weeds’ series with Green Deane. There is a wealth of information there! His amaranth video was great, and he mentions many times ‘you know you can make beer with this’. Great info. 🙂

Anyhow about the DVD: Linda Runyon is an expert on wild plants- she not only tells you plant identification she also explains about storing plants by drying and how to prepare plants, in ways I’d never thought of. Linda Runyon’s Master Class video was worth the $30 on Amazon. Her Wild Cards flash cards are about one of the best survival buys I’ve ever purchased: 52 playing cards –all food plants/trees! As I recall, I paid $5 for them – again on Amazon. They are very compact and ready to be taken camping so you can ID plants.

Walking with an Expert

The plant walk I took was sponsored by ‘The Good Earth Health Food Store’ in Callicoon, New York (a few years back). If you are in the ‘occupied’ New York area and have time this would be something to bring a camera and a notebook to! (Warning: bring extra batteries, my camera died before the walk ended!) I did, however, take notes!  Nathaniel Whitmore, Herbalist – gave a tour around the town of Callicoon to show what plants people step over daily that can be eaten. The tour lasted an hour and ended up on the banks of the Delaware River.  This was a donation event that Nathaniel was doing every few weeks, so it would be best to contact the store for more info on dates and times-  (I don’t work for them, or have any stake in their business.) I was however enlightened by the amount of plants that were pointed out in the field, this man’s knowledge of wild plants in astounding.  

The top five has been done before on this blog- but let’s recap because these are about the most common plants around- If you know them, your likely never to go hungry!

1.      Dandelion -greens.
2.      Cat tails –every part, roots baked and eaten like potatoes
3.       Queen Ann’s lace –wild carrots (make sure its stems are hairy because poison hemlock is very similar to wild carrot, and it is deadly- Poison Hemlock is hairless, and doesn’t smell like carrots!!)
4.      Lambs quarters – cooked like wild spinach
5.      Wild lettuce –greens

But what else do you see daily? That is my question! Are you taking the time to question what plants are around and how can you use them?? And it’s something that you as a survivalist need to be aware of in every walk, outing, bike ride…become aware of your surroundings. Pay attention to what nature is growing outside that you can eat for free.  Make it a habit to learn what plants are in your area, and how those plants can be used. Next time you are out make a list and take pictures of plants you are not sure of, to find out if it’s something useful or food. You can always open a book or google a description of a plant in your down time, later when your back home.

On my daily walks I see- the white flowers of Queen Ann’s Lace (wild carrots) everywhere, white flowers of wild onions and leeks, the blue flowers of Chicory (roots used for coffee substitute.), the yellow flowers of wild mustard, yellow flowers of dandelion’s, greens of plantain, greens of lamb quarters (probably the best tasting wild plant!), yellow flowers of evening primrose (potatoes), amaranth (pig weed- seeds used for flour) and I didn’t even mention the trees! White Birch buds/twigs/sap, maple seeds/syrup, and acorns… food is literally everywhere – but the key is in knowing and being aware of one’s surroundings enough to find it when you are hungry. Awareness is the key. I have learned that the more I look for something the more of what I am looking for I find.

[JWR Adds: I must re-emphasize the author’s point: Be very careful about plant identification. For example, the Water Hemlock (which is poisonous) to an untrained eye looks very similar to Queen Ann’s Lace!]

Here is a quote from Linda Runyon ‘with the woods being green- 50% of that green is stuff you can eat.’ Knowing this makes it really hard to starve, unless you have given up on living. This simple idea gives me a lot of comfort knowing that someday supplies might run out or become scarce, I’ll be able to find what I need. There really is enough food for everyone smart enough to know where to look for it.  

One more thing: I’ll close with a quote. I love this quote because it sums up what people rioting in the UK are doing to themselves by destroying the middle class businesses that are the stalled, damaged, driving engine of their economy. I know it’s very colonial of me:  “Life is hard; it’s harder if you’re stupid.” – John Wayne

Letter Re: How To Butcher a Squirrel

James Wesley:
With respect to the recent posting on squirrel processing, I suggest that anyone seeking squirrels for food, not sport, leave the guns at home.  Save the ammunition and preserve the silence.  Use of a 110 Connibear trap on the side of a tree is much more effective and surreptitious.  There are a lot of ways to set them, but the easiest is to place a couple of screws into the side of a tree about an inch apart and set the trap so that it clamps itself to the screws while remaining in the horizontal plane.  A bit of rag with peanut butter makes a great bait on the trigger whiskers.  The usual caveats regarding fingers, pets, and children apply.  Available for about $19 a trap and with a useful lifespan measured in decades, a dozen of these traps will put much more meat in the pot than a .22 rimfire ever can.  Here is a picture of a similar set.   I very much enjoy squirrel hunting, especially with dogs, but it’s more of a recreation than a harvest. – Will T.

Economics and Investing:

G.G. sent this: Deficit Averaged $110 Billion Per Month So Far in 2011. So, what’s a shortfall of $3,600,000,000 per day, among friends? It all sounds a little like Wimpy. Given the demographic trends of our aging population, the projected GDP, the prevailing inflation rate, and the law of compounding interest, it is nigh on impossible for our children and grandchildren to ever pay off this crushing debt.

Did Soros Win 10/1 Return On S&P’s US Credit Rating Downgrade?

France & Britain AAA-ratings Under Scrutiny

More shrugging: Fed Up: A Texas Bank Is Calling It Quits

An interesting 15 minute podcast: Jim Puplava interviews Chris Martenson

Most Americans can’t afford a $1,000 emergency expense

Odds ‘n Sods:

Richard S. sent this: England Used to Be a Country of Men

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Serious People are Starting to Realize That We May Be Looking at World War. (Thanks to K.T. for the link.)

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Vigilante groups protect London streets. (An example of a Neighborhood Watch on steroids, as I like to call them.)

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K.A.F. sent this: Taking Liberties: Conservation Groups Fighting to Keep the Peace in Idaho. Oh, and speaking of the land of the Free Ranging Spud: Idaho Touts Its Red State Culture To Attract Gun Manufacturing Jobs. (Thanks to Bill A. for the latter link.)

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Another Californian votes with her feet: Dear California: I’m Leaving You. Here’s Why…

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)

Note from JWR:

Today we present another entry for Round 36 of the SurvivalBlog non-fiction writing contest. The prizes for this round include:

First Prize: A.) 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 B.) Two cases of Mountain House freeze dried assorted entrees in #10 cans, courtesy of Ready Made Resources. (A $300 value.) C.) A 9-Tray Excalibur Food Dehydrator from Safecastle.com (a $275 value), D.) A $250 gift certificate from Sunflower Ammo, and E.) An M17 medical kit from JRH Enterprises (a $179.95 value).

Second Prize: A.) A Glock form factor SIRT laser training pistol. It is a $439 value courtesy of Next Level Training. B.) 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, C.) A $250 gift card from Emergency Essentials, and D.) two cases of Meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value).

Third Prize: A.) A Royal Berkey water filter, courtesy of Directive 21. (This filter system is a $275 value.), B.) Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy. This is a $185 retail value, and C.) Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security.

Round 36 ends on September 30th, so get busy writing and e-mail us your entry. Remember that articles that relate practical “how to” skills for survival have an advantage in the judging.

Bitcoins: A Practical Primer, by Yishai

Bitcoins are a new anonymous peer-to-peer digital currency.  It is truly the next big thing in how we can conduct transactions over the internet without any central clearinghouse or bank or government ‘okaying’ our transactions.  I believe Bitcoins will be quite disruptive in how we all do business online.  You can pay anyone directly with Bitcoins, buy products from Amazon.com in Bitcoins (through a reseller), and even take SurvivalBlog’s’ 10-cent challenge in Bitcoins!  Bitcoins have an inherent value and as long as the internet is standing, are here to stay. As of this writing, 1 Bitcoin (or BTC) was selling for $14.  There are many merchants willing to do business online with Bitcoins, and the list keeps on growing.

You can read a lot more about Bitcoins, how they work, their implications and tradeoffs in a great and worthwhile introductory academic paper here.  A few additional introductory sites are: Bitcoin’s homepage, What is Bitcoin?, and Bitcoin FAQs.

There are great sites extolling the virtues of Bitcoin, and James has said to expect an article in the coming months on the positive survival aspects of Bitcoin, but what I found difficult to figure out is how to practically get my hands on some Bitcoins and how to start using them effectively and safely.  After much trial and error, and also many years of online experience, I compiled the following practical ‘how-to’ primer on getting and using Bitcoins.  I will, in detail, explain how to use Bitcoins safely in the second section of this primer.  In the first section, though, I will explain how to safely and anonymously browse the internet, and also how to run a safe computer.

Section 1: It all starts with a secure computer

Firstly, you must secure your computer as much as possible.  It is imperative that you secure your computer against unwanted intruders from the ‘net, or even from babysitters or inquisitive nephews.  The reason this is so important is that all of your bitcoins will be stored in a file called a “wallet” on your computer, and should anyone get their hands on that electronic file, they can easily pilfer all of your bitcoins. 

1) First step: Get a Mac:  I’m just joking (well, sort of).  Basically, Windows machines have a lot more vulnerabilities and are much more enticing targets for hackers.  It is still possible to increase the safety of a Windows machine, but in general, Macs are better.  Linux machines are supposedly even better than Macs, but not very user friendly.  As I don’t know much about Linux, this tutorial will cover only Windows and Macs. (If you already have a Linux box, then you a probably an advanced user don’t need this primer;).

If you have Windows, make sure to update it regularly via the official Microsoft web site here (making sure to select only the imperative security updates, as Microsoft tries to slip in non-essential ‘upgrades’ which only bog down your computer or even checks to see if you use pirated software.  Read each update’s description carefully before downloading and installing them).  Macs also need updating (gasp!).  Click the apple on the top-left of the desktop and go down to ‘Software Updates’.  Deselect all the unneeded updates for regular software, and only choose Mac system or safari updates. 

2) Create a computer log-in password.  This is important for both Windows machines and Macs.  Make sure to create a password for your administrator account, and potentially add a screen-saver lock to relock your computer after some time of inactivity.  (password how-to: Win; Mac)
In addition to a main password, consider setting up new user accounts for your kids (and spouse?) to compartmentalize any potential damage they may cause while playing around on the computer.  Instructions for setting up user accounts are here (win) and here (mac).
(Mac Tip: Encrypt your entire hard drive using the included program FileVault per the instructions here.  It’s an additional security step for when you are logged out, or if your computer physically falls into the wrong hands.  I don’t recommend doing the same thing with a Windows machine due to reliability concerns.)

3) Install Anti-Virus (Windows only).  This shouldn’t be news to you, but if virus scanners are, download Avast (free) here, and install and update it.  Avast has been the best choice in my experience.  The default settings for Avast should be sufficient.  Make sure to stay with the free options during download and install, as they also sell a “pro” version (not necessary).  No anti-virus is needed for Macs (woot!).  Update the definitions and program regularly, or have the program do it automatically (which is the default settings).

Another useful tool to use in addition to Avast is Spybot Search and Destroy (also free).  Spybot has some very useful startup cleaners and other scans which is a nice add-on to keeping your computer even more secure and running well.

4) Install/setup a firewall.  Firewalls help prevent hackers breaking in to your computer from the outside network.  In my opinion, the default Windows firewall is insufficient as it lets through numerous “Microsoft approved” connections without even telling you.  Turn it on anyway (how-to link).  It should help, but if you are an advanced user, you may want to supplement the regular firewall with a third party firewall as an added layer of protection.
The Mac OS default firewall is enough for basic safety from intruders, but you must make sure that it is enabled (here’s how to do that). Once it is enabled, go to the advanced settings and deny access to any strange programs that shouldn’t be accessing the ‘net.  Allow the rest (Firefox, Chrome, etc.)

5) Tor  Nope, we’re still not ready for Bitcoin.  Before starting with Bitcoin, I recommend that you setup and utilize Tor. Using an anonymous currency is less valuable if your transfers and web usage can potentially be tracked.  Tor helps anonymize everything you do on the internet.  Tor is an open-source anonymity project in which your web traffic and requests are encrypted and bounced off of random people across the world until the last ‘bouncer’, or ‘exit node’, requests the actual page you wanted, then encrypts and sends the page back upstream until it reaches your computer.  The theory is that each person in the chain can not see or read the actual web page, nor know where it is ultimately being sent, they are only relaying encrypted gobbledygook.  The last guy in the chain, or ‘exit-node’ is theoretically able to find out the page/data that is being viewed, but as he doesn’t know who actually is getting the page in the end (i.e., you), the anonymity of web surfing is preserved. 

Using Tor effectively is somewhat complicated, but I will walk through it with you with links for further reading and instruction.  It is worthwhile to figure out this step 5 to markedly increase your online safety and anonymity.

5a) Install Tor.  First download the Tor software bundle here (Windows) or here (Mac).  Install the Tor bundle (Win help; Mac help)  Once complete, open Vidalia.  Vidalia is the program that starts up and uses Tor in the background.  Another way of thinking about it is that Vidalia makes using Tor ‘pretty’ and more user-friendly.  So when you need to start up Tor, you really just start up Vidalia which will turn on Tor in the background. (Mac users, use the ‘spotlight’ icon on the top right of the desktop easily find and use the Vidalia app.) Windows users may be having Vidalia start with Windows (default setting).  That’s okay if you’ll use it often, otherwise delete it from your startup folder or use Spybot to remove the startup entry.  Vidalia will still work fully when you start Vidalia manually via the Start menu.

5b) Configure Tor.  Why Tor/Vidalia is a bit tricky to use, is that it’s not enough just to start Vidalia and run Tor in order to remain anonymous.  You must configure your browsers and programs to go through Tor before they go out to the web.  That’s called using a ‘proxy’.  [Tip: to skip to the how-to “final answer”, what is needed is to point all programs/browsers to use the proxy 127.0.0.1:8118].  There are a few ways of setting up browsers, including the ‘official’ Torbutton on/off switch for Firefox (included with the full installation of Vidalia above), but I recommend to you another convenient method, which uses Goggle Chrome and a nifty proxy “on/off” button. (See the steps and screen shots here). 

Once you are running Vidalia/Tor, and have set up your browser or program to use Tor, you can check that all is in (anonymous) order by going to this site:  (at the Tor’s own web site) and they will let you know if your browser is using Tor correctly or not.

Tip: Occasionally obtain a new identity while browsing.  Right click on the green Tor/Vidalia icon, and select New Identity.  This gets a new Internet address, or an ‘IP’, for you to make it even harder to track usage.

An aside: Online usernames and passwords. Just a quick note on online usernames and passwords.  Make then ‘strong’ i.e., at least 12 characters, and use symbols, numbers, and capital letters too.  Occasionally change your passwords, and don’t get stuck in a rut using the same password across sites.  If someone successfully hacks your Yahoo account, would you want them snooping through your bank, credit card, and online backup sites too?  An additional safety tip is to not use your favorite and usual username (which is usually your e-mail address prefix – i.e., ‘johndoe’ from ‘johndoe@aol.com’.  85% of people use it).  Mix up your usernames.
Practical tip: I know everyone always says to make all of these different passwords and usernames, but who can remember them all?  Why don’t you write them down (gasp!), yes, write them down, and then store them in a safe place (like a safe, cache, or bottom of a grain bucket).  You can practice “safe writing” by storing usernames in one location, and their corresponding passwords in another.  Also, self garble your passwords in an easy to remember manner. An example of this would be to always write down on paper the incorrect password, but with the first two characters at the end, so a password ‘abc123’ becomes ‘c123ab’ written down.

Section 2: Bitcoin-opia

Okay, now we’re into the second section of this primer, and are ready to venture in to the Bitcoin world. 

1) Install Bitcoin client.  First, you must download the Bitcoin client.  Bitcoin is open source, and anyone can write a client.  Few have done so, but by far the most widely used client is this one from Bitcoin.org. (here’s the latest Win / Mac version).  Install the program and then run it once to check it out and to also have it set up your personal digital wallet.

2) Encrypting, hiding and backing up your ‘wallet’:  (Optional) Some people highly recommended that you hide and encrypt your ‘wallet’ so as to increase your money’s safety, and also to allow for easier backup onto a thumb drive or online backup site, if desired.  However, I’m calling this step ‘optional’ as it is fairly advanced, and if done incorrectly, can make your Bit-wealth disappear.  So only mess with this step 2 if you feel comfortable with the instructions found on this web page.

In general, the steps for encrypting and hiding your wallet work by you creating an encrypted drive, in which you can place any sort of files inside of.  This encrypted drive looks like a regular file on your computer, until you ‘Mount’ it, which is a weird way of saying to open the encrypted file and tell your computer to start treating it like a regular hard drive.  In order to mount the drive and decrypt the contents, you will need a password.  Once you are done using the files inside of the drive, you then ‘Unmount’ the drive, returning the drive to its safe, unreadable, encrypted state. 

But again, only do so if you’re comfortable with working with encrypted drives.
In summary, for both Windows and Macs, before you run your Bitcoin client (to send BTC or check on your funds), you (a) mount your encrypted drive (which has your wallet on it), then (b) run and use Bitcoin, then (c) close Bitcoin and unmount your encrypted drive.

Backing up your wallet.  As your money resides on your ‘wallet’, you can copy your entire encrypted drive (containing your wallet) onto an external hard drive or small thumb drive.  Then keep that thumb drive in a safe location (i.e., a safe, or a grain bucket).  You will need to re-backup your wallet if you use Bitcoin a lot and create more than 100 new Bitcoin addresses (see step 4 below),  This is to ensure that restoring your wallet will restore all of your bitcoins.  There are some who recommend storing this encrypted drive online in either Dropbox, or your e-mail account, but I don’t recommend this.  I’m always wary of putting too much faith solely in encryption.  I prefer to encrypt and control access to the file itself (through physical and network security means).  If you store it online, you are at the mercy of your e-mail provider or online storage site for providing physical security to your file, so you are then relying solely on your encryption.  Mileage may vary, and different users may prefer different methods depending on your individual needs.

3) Buying/selling bitcoins.  Now that you are safe, secure, and anonymous online (don’t forget to turn on and check Tor!) you can begin your foray into the real money world of Bitcoin.  There are many ways to purchase Bitcoins (or BTC), but I will tell you the easiest and most inexpensive route that I’ve found for doing so. 
In short, (and I will explain in detail below), you send real money from a real ‘brick and mortar’ bank account to the online payment house Dwolla (step 3a).  From Dwolla, you send those funds to MtGox, the foremost Bitcoin trading center (step 3b).  From within your MtGox account you can then buy and sell Bitcoins using those funds (step 3c).  To effectively use (and anonymize) your newfound Bitcoin stash, withdraw Bitcoins from MtGox into your personal wallet on your computer (step 3d).  You are now free to spend Bitcoins!  In further steps we will discuss how and where to spend and using Bitcoins.  Selling Bitcoins (turning BTC into US$) is performed using the same steps above, just reversing the steps: Deposit BTC into MtGox from your wallet, Sell BTC on MtGox exchange, withdraw dollars to your Dwolla account, then transfer the US$ from Dwolla into your Brick and Mortar Bank.  You have now reentered the legacy and outdated world of finance.

3a) Bank dollars to Dwolla dollars: Set up a Dwolla.com account here.  Then add and verify a real bank in order to transfer money in and out of your Dwolla account (links are on the toolbar to the left).  Adding an account is straightforward using your account number and routing numbers found on a paper check.  Verifying your account consists of your waiting for Dwolla to deposit a few cents into your bank account, then you check that bank account and tell Dwolla how much each of the two deposits were.  This whole process takes 1-3 business days until your Dwolla account can be funded for the first time.

Once your account is verified, you can start the process of adding funds to your Dwolla account by clicking on the “Deposit Money” link on the toolbar to the left. Depositing money into Dwolla takes 3-5 business days and is free (unless your bank charges for it, but they shouldn’t be).  Dwolla kindly sends you an e-mail the instant your bank transfer clears, and you will then be ready for step 3b below.
           
3b) Dwolla dollars to MtGox dollars.  [recent update: you must disable Tor while working on MtGox – they are trying to combat hacking attempts.] Create an MtGox account here.  There are no verification steps (other than a valid e-mail address).  Once you have an account you can “Add Funds” by clicking the Add Funds button on the left side toolbar.  There is a bunch of ways to add funds to your MtGox account, but the easiest/best way is to use Dwolla. MtGox also accepts Liberty Reserve, and even direct international wire transfers, for a fee of 2500 Yen (about $31 today).  Dwolla is the easiest and cheapest ($0.25 each transfer).

While in the “Add Funds” section, choosing the Dwolla method button reveals a link which you can use to transfer Dwolla funds directly (link is next to the words “Account Number”).  There will also be an important memo to include on every transfer from Dwolla to MtGox (MTGOX #xxxxx) so that MtGox knows to which account to credit the incoming transfer.  So, either send your Dwolla funds through the all-in-one link on MtGox’s site, or do it manually from Dwolla’s “Send Money” link to MtGox’s account (812-649-1010) remembering to include the appropriate memo with your account on it (MTGOX #xxxxx).  This step officially takes about 12 hours, but oftentimes it is much faster.
You can also add funds using Bitcoins.  Just send BTC from your computer client to the address listed on the Add Funds page.

Tip: after you’ve sent money to MtGox once, you can have Dwolla automatically pull money from your bank and send it over to MtGox in a single step, making it slightly easier to fund MtGox account.  Do this: from the “Send Money” link in Dwolla, select your bank as the ‘source’ in the drop down menu, and set up the rest of the transfer to MtGox normally.  Dwolla will pull money from your account and send it to MtGox for you. Single-step to get funds in to MtGox!
           
News Update: MtGox had a few high-value accounts stolen (not from their databases, but from the external users’ computers) which were used in an attempt to manipulate the trading market.  MtGox shut down all trading for about a week, and reversed all illegal trades.  They have since restored all operations, and all prices are very stable subsequent to their reopening (~$14/BTC).  If you still feel too uncomfortable dealing with MtGox, you can use another (much smaller) trading house, Tradehill.  All the same steps in this primer apply, just substituting Tradehill for MtGox.  As I have never done any transaction with Tradehill, I can’t recommend them personally, I just forward their name on by virtue of them being the second largest Bitcoin exchange.

3c) Buying and Selling Bitcoins:  From within MtGox, you can buy or sell Bitcoins (BTC) here or by clicking “Trade” on the toolbar to the left.  Treat the purchase as you would any other commodity, and as James drills into our heads, buy on the dips.  To put it mildly, Bitcoins is a highly volatile commodity, with a price fluctuation range of between $10 and $30 per Bitcoin, in recent weeks.  Since the MtGox security scare, it has been very stable trading around $13-15 per BTC.  In any case, as you are buying Bitcoins for its usability (and not as an investment device), buy them as low as you can, and try not to worry if they fall in price afterwards.  You are paying for the freedom of using and owning a private and anonymous currency, and the premium is in its highly volatile exchange rate. 

(Editor’s note: Part of the beauty of the Bitcoin world is its freedom and lack of regulatory agencies.  But that very freedom unfortunately draws speculators and fraudsters.  Speculators were toying with the exchange rate last month with wide-ranging trades to make money (and were been stopped by MtGox, though).  In addition, fraudsters are inspired to commit nefarious acts because of their inherent anonymity.  I feel that the Bitcoin market will dampen out these crazy speculative price swings over time, and similarly, fraudsters will be discouraged as the Bitcoin community becomes better informed and trained.  As with any cash transaction, Bitcoin payments and purchases are quite final, so take caution as you would any other cash transaction.)

Trades in MtGox are treated like any other stock purchase you may make on an online brokerage house: you enter the amount of bitcoins you would like to buy, and at what price.  There are a bunch of trading charts available by clicking “Trading Tools” on the toolbar to the left.
Don’t worry if your order doesn’t get filled immediately.  The price fluctuations will make it likely that your request will be fulfilled soon.  You can also sell BTC in the same manner, on the same “Trade” page.

MtGox takes a very small commission (0.30%) of every trade, whether you are buying and selling. 
At the top of your MtGox account you will see a running tally of your current balance in Dollars and in Bitcoin.  Those Bitcoin in your account can be transferred to your personal ‘wallet’ on your computer to use them.

3d) Withdrawing Bitcoins (or US$): From your MtGox account, click “Withdraw Funds” on the left toolbar.  Choosing the radio button for Bitcoins as a method of payment, you enter the number of bitcoins you want to withdraw, and also one of your Bitcoin addresses.  Bitcoin addresses are created by your Bitcoin client program on your computer, and you can create as many addresses as you need – they all belong to you.  (See step 4 below for more info on this).  After the transaction clears the online Bitcoin world (no banks are involved! Yay!), it will show up as residing in your wallet from within your Bitcoin program on your computer.  You are now free to use them and pay whomever you’d like, completely anonymously.

4) Using Bitcoins.  The Bitcoin client program should be configured to use Tor to completely (i.e., tell the Bitcoin program to utilize the anonymizing virtues of Tor.  Detailed instructions for doing so are found here (and basically amounts to using a proxy server 127.0.0.1:8118).
The Bitcoin client comes with 100 personal (and anonymous) addresses preprogrammed in to the program, all of which point to you in the virtual internet world.  You can create new ones at any time (Click “Address Book”, then “New Address”), and can create an infinite amount of them. You use these addresses for whenever someone would like to send you money (BTC).  You give them one of your addresses, and they will send you money.  And if you want to send someone money, you can send it to their Bitcoin ‘address’.  These addresses are also used for withdrawing funds (as BTC) from MtGox.  These addresses are unrelated to each other, and an infinite (theoretically) amount of new addresses can be created.  It is recommended by the Bitcoin community to use each address only one time, i.e., one address per transaction, so as not to compromise your anonymity.  The transaction must be ‘cleared’ by the online Bitcoin community (i.e., a significant number of peer-to-peer connections all agree that Peter just paid Paul).  This can take upwards of an hour or two, but if you are willing the sender can pay an extra 0.01 BTC (~$0.20) for preferred processing, which can shorten the transaction time to around ten minutes (you set this value in the settings in your Bitcoin client).

Sending money is also very easy.  You click “Send Coins” in your Bitcoin client program, putting the recipient’s address in the box and the amount you’d like to send.  Click send to send the Bitcoins. That’s it!  And as mentioned before, all Bitcoin transactions are quite final, so take care and double check your amounts before sending.  Treat Bitcoins as you would cash.

How and where to spend Bitcoins.  Besides person-to-person transactions, there is a rapidly growing industry of merchants willing to accept Bitcoin in addition to old-fashioned dollars and they offer tangible goods in addition to services (online and real-world).  There are also nascent businesses starting up to provide interesting and unique services for Bitcoin holders.  A (growing) list of businesses accepting Bitcoins can be found here, and many merchants are added every day.  There are even merchants willing to accept Bitcoin for Amazon.com purchases (they make money from Amazon referral program).  These merchants are really opening up the world to Bitcoin enabling Kindles, laptops and even groceries, to be purchased with Bitcoin.  As many of these businesses are new, treat them with caution and research their online reputation before conducting any major transactions with them.  

Enjoy your newfound online financial freedom!

If you enjoy SurvivalBlog, then donating a little bit. The BTC address for Ten Cent Challenge contributions:  1K7Gk6kqX6psSWDJaRV6pyDH7dwZuvqtUB 

And if you’ve enjoyed or benefited from this Bitcoin primer, then please consider a little clink in my personal Bitcoin tip jar, here:  1BfhNGddNCGFcaJjisiUQW6m1UaSbPHTdF

Letter Re: A Folding Kayak as a Survival Vehicle

Jim,
I have used a kayak for a couple years now and find it indispensable. Three years ago my grandfather gave me the very nice gift of a brand new Old Time kayak (a dark green fishing model). He want for me to have something to remember him by as he was on his way out of this life. But I digress.

This kayak has been on numerous fishing trips and river excisions, including a week long float on the Current River. It has never failed me and I have been extremely impressed with it. My dad grew up spending every available moment out doors and had always thought that nothing could beat a John boat for fishing and he didn’t believe in kayaks until he tried it out for himself. He then went and purchased two more kayaks for himself. The kayaks, I believe, would be very useful in the case of SHTF. They are very maneuverable and with their shallow draft and ability to carry fairly heavy loads, I seriously consider mine a viable alternative to a land-based vehicle.

One important difference of a kayak to say, a John boat is the size of such a craft. You could easily pull it up under brush to camp on the side of the river. It will also float up the tributaries and creeks as we have here in the Wabash/Ohio River valley. Now I know that anywhere east of the Mississippi River will just not suffice when the SHTF. So I have laid out travel plans involving the waterways to a certain somewhere in Montana. It does involve portaging but with the kayaks having a manageable weight that does not bother me. I have figured that with all gear it would be a tight fit, but with the ability to use the john-boat or construct rafts this is for the most part unimportant. Thanks, – Jacob M.

Economics and Investing:

Predictably, they slammed on the brakes at the COMEX: CME Group Hikes Margin Requirements For Comex Gold Futures. But since the physical market for gold is so strong, this move against futures trading will probably cause only a brief drop in the price of gold. The bull will resume his charge. (Thanks to Eli for the link.)

Dennis C. mentioned this editorial: Falling Bank Stocks Offer a Too-Big-to-Fail Wakeup Call

John R. kindly sent a whole raft of links:

Jim Rogers: Bernanke, Geithner Leading Us Into Fiscal Armageddon (Henry J. Reske and Kathleen Walter)   

The Best Looking Horse in the Glue Factory (Jim Quinn)  

UBS’ Andy Lees On Why The US Economy Is, All Else Equal, Doomed (Andy Lees, by way of Zero Hedge)

The Elusive Abyss (Neil Charnock)

S&P 500 Update – US Dollar Sacrificed (Dan Norcini)

Global Grand Policy Failure: Liquidity Traps and Financial Black Holes (Charles Hugh Smith)

“Europe Is On The Verge Of Collapsing”   (Raul de Sagastizabal)

Is This It? Or Can They Fool Us Again?   (John Rubino)  

Ramifications of a U.S. Debt Downgrade (Greg Hunter)  

Did S&P Shoot Itself in the Foot?   (Martin W. Armstrong)  

The Coming Fiscal Train Wreck — Part I (Dave Cohen)  

Reality Finally Hits The Morbidly Obese US Government (Jeff Berwick)

Global Warning-Credit Spreads Widening   (Bob Hoye)  

The staff of Der Spiegel asks: Is The World Going Bankrupt?  

Items from The Economatrix:

JPM Sees Gold at $2,500 By Year End

Fed’s Low Rates are No Fix for Economy or Retirees

Pension Warning Amid Market Turmoil

Gold Price Soars Amid Mounting Fears Over Double-dip Recession

Odds ‘n Sods:

I’m pleased to see that John Jacob Schmidt is continuing to produce his weekly Radio Free Redoubt podcasts, each Sunday evening. There are now 10 archived shows. While not affiliated with any of my ventures, Radio Free Redoubt is nonetheless a great way for people to share ideas and information on relocating to the American Redoubt, and issues of interest for those living in the region.

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Chris D. suggested this: Five Reasons Why American Riots Will Be The Worst In The World

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More Nanny State meddling: Anonymous Call to New Animal Abuse Hotline Leads to Raid on Colorado Woman’s Rabbit Farm. ONE dead bunny out of 180+ rabbits, in hot August weather? The lady deserves a medal, not a court date.

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Reader Will T. mentioned: “I recently encountered a fascinating and practical book titled Security Engineering, by Ross Anderson.  The first edition (2001) is legally available for free online.  The author has arranged for six chapters from the 2007 edition to be posted and hopes one day to post the entirety of the updated edition.  He covers issues from cryptography to banking to deadbolts to terrorism.”

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C.T. highlighted this: Oath Keepers: FBI Wants Surplus Stores To Spy on Customers. It sounds more like they’re fishing for preppers than terrorists…

Note from JWR:

Today we present another entry for Round 36 of the SurvivalBlog non-fiction writing contest. The prizes for this round include:

First Prize: A.) 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 B.) Two cases of Mountain House freeze dried assorted entrees in #10 cans, courtesy of Ready Made Resources. (A $300 value.) C.) A 9-Tray Excalibur Food Dehydrator from Safecastle.com (a $275 value), D.) A $250 gift certificate from Sunflower Ammo, and E.) An M17 medical kit from JRH Enterprises (a $179.95 value).

Second Prize: A.) A Glock form factor SIRT laser training pistol. It is a $439 value courtesy of Next Level Training. B.) 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, C.) A $250 gift card from Emergency Essentials, and D.) two cases of Meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value).

Third Prize: A.) A Royal Berkey water filter, courtesy of Directive 21. (This filter system is a $275 value.), B.) Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy. This is a $185 retail value, and C.) Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security.

Round 36 ends on September 30th, so get busy writing and e-mail us your entry. Remember that articles that relate practical “how to” skills for survival have an advantage in the judging.