Odds ‘n Sods:

Joshua H. sent a link to a nifty homemade hand crank flashlight, over at Instructables.

   o o o

In celebration of Labor Day, JRH Enterprises is offering full mil-spec AN/PVS-14 Gen 3+ night vision weapons sight monoculars at a special sale price. These are autogated and complete with soft case, head mount, head mount adapter, operators manual, batteries, lens paper, de-mist shield, sacrificial window, and ITT tube data record, et cetera. The price is just $2,895, which is less than most dealers charge for a standard Gen 3 scope. (As I mentioned before, these are the much more sought-after Gen 3+ variety.) This sale ends at midnight Sunday, so don’t miss out!

   o o o

Cheryl N. forwarded a link to the Collapse theatrical trailer. I noticed that “Collapse” is available via NetFlix.

   o o o

An old discussion thread over at TMM Gulching and Self-Sufficiency Forum has been revived: When Your Family Thinks You’re Crazy.

   o o o

No comment necessary: Obama Administration Reverses Course, Forbids Sale of 850,000 M1 Carbines and Rifles





Odds ‘n Sods:

Roman sent us to a web page with some “outside the box” thinking: How we turned an old backyard swimming pool into a self-sufficient garden in a desert city.

   o o o

Following her recent training with Louis Awerbuck, Tamara weighs in about Tacticool Mall Ninja fashion consciousness. And she’s right. Looks don’t kill. Well-aimed projectiles do.

   o o o

‘Don’t tread on me’ flags start disputes around the country. (Thanks to Judy T. for the link.)

   o o o

Pastor Chuck Baldwin (former Constitution Party presidential candidate) is wisely relocating his family from Florida to Montana.



Letter Re: Returns on Investments

James:

Being married to an accountant, former government financial inspector and a finance director for a company opened my eyes to the concept of getting a return for my investment. For large tangible items, that concept is important. Oh, I certainly could fill a wall with a 55 inch plasma television, but what do I get in return for that investment? A wannabe movie screen that has a limited lifespan and sucks a chunk of energy? Will it help my long term bottom line of being financially independent and ready? The idea of investing in tangibles in a serious downturn made sense to me, even as described in Mr. Rawles’ novel, Patriots. By no means is our family wealthy or “super preppers,” but we believe in the need to be prepared for any major disaster or incident, whether natural or man-made. We wanted to not be a drain or liability on what will be a fragile infrastructure and be able to independently stand. While not religious, we believe in the need to be there to help our neighbors when possible. It is our moral obligation.

In 1998, my wife and I invested in our second house after our first was declared to be in the way of a future realignment of a state highway (that explained why we could not get natural gas piped to the house). I was developing into a neophyte “prepper” due to my active duty and National Guard service as well as being a cop and living in earthquake and volcano zone. As a result, my focus was shifting into a more sustainable type of house. We found a great house about a mile away on just over an acre of land, with a year round salmon stream in the back part of the property. Of course there were some drawbacks: it was much older and needed work, sat on a reasonably busy road and with the salmon bearing stream buffer rules enacted by the federals, we were space limited. But the positives were that is was close to my work, the house was solid, had copper piping throughout (we preferred copper to PVC or similar), a septic system, detached shop, natural gas throughout, “legacy” type 60-100 year old cedar and fir trees backed by a greenbelt and a real, working fireplace with a first generation Heat-a-lator type system big enough to heat the 1,500 square feet of house if the power should go out or there was a gas disruption. We re-invested the money received from the state buying our other house into the current one and were already into the positive equity side. We knew we would invest some sweat equity in fixing things so that dropped the house price even more. In our eyes, the return on our investment in this house (our largest tangible asset) was big. In fact, during the Nisqually Earthquake of 2001 in the greater Seattle area, our house survived with nothing more than items knocked off some shelves in the garage while newer homes in the area suffered wall and chimney damage. Very good for a house that was initially built in 1938!

As time progressed and we added children to our family unit, we began to discuss moving to a better location, one that had more room and further away from concentrated urban and suburban cores as well as meeting our growing preparedness mindset. However, all of that came to an abrupt halt in 2007. It was at that time that my youngest daughter was diagnosed with Type 1 Diabetes and Celiac Disease (as discussed several years ago on SurvivalBlog). I had to take a hard look at my dream of moving away and faced the reality that I would be looking at suburban preparedness. My wife and I discussed our options and realized that due to my daughter’s needs, our proximity to the local Children’s Hospital as well as various food vendors that catered to “Celiacs” weighed the greatest. We needed to stay where we were at and make the very best of the location. We began to look back at our largest investment and realized that it was time to invest some more in tangibles to improve the house now that we would be remaining.

My wife and I have been and continue to be blessed to be in what are essentially recession proof jobs. We also saved what we could, received a small inheritance and began to make our list. Over the last several years, we invested in big ticket house items that as little as six years ago, would have been nearly impossible to afford due to the “hot” economy and housing/remodeling market. I am not ashamed to state that we took advantage of hungry remodelers and contractors to get fair but reasonable prices on projects we weren’t able to tackle ourselves. We shopped dealer scratch and dent sales, Craigslist and other places to get new (but cosmetically damaged) appliances and fixtures. We upgraded the septic system to a gravity fed long life drain field and tank, allowing for our family to have a system that not only would meet our needs in the future but in a grid down situation, would function while the sewers failed (and could act as a privy with a portable outhouse that could sit on top of the tank). We replaced our decaying torch down roof with a sturdy metal roof while also improving the insulation in the ceiling while the surfaces were exposed. While the metal roof was nearly two-thirds more than a comparable torch down or commercial roll roof product, the return on that investment was a 40 year roof, fireproof to prevent possible roof fires and sturdy to prevent damage from the limbs of the trees surrounding our house. It met severe wind requirements due to the anchoring system.

Windows were replaced with new energy efficient designs that would work to better insulate and protect the house. We upgraded some of the electrical in our home, adding a connection point for a like new generator I received from a deceased family member. We learned through testing based upon ideas at SurvivalBlog and other sites that with the use of natural gas or propane in all of our major appliances as well as low energy lighting and energy efficient appliances, the 7,500 watt generator we had could easily power everything but the washer and dryer at the same time. All were immensely valuable tangibles that added to our return on the investment in our house.

My family and I continue to make some final investments in our house as well as our overall sustainability in nearly any situation save a nuclear strike directly over our house. But the idea of returns on our investments by investing and buying tangibles right now have made us more secure and in a much better preparedness position. With the mortgage payoff only a few years away, we will be in an even stronger position. When that biggest balloon pops, we will be all the better for it. – MP in Seattle



Letter Re: Recommendation for “The Hunger Games” Trilogy

Hi,
I just recently found your blog, and it’s really useful. I’ve recently become interested in self-sufficiency, and it’s a great resource.

I wanted to share a book recommendation that I think might be interesting to your readers, a book series called The Hunger Games, by Suzanne Collins. It is a trilogy of young adult novels about a little girl who lives under a completely authoritarian state. The state requires ‘tributes’ from all 12 districts, children from age 12-18, one boy one girl. All are put in an arena to fight to the death, to show how much power the state has- they can force you to put children of your district to death. The story follows a tribute who has learned, in her poverty, to hunt, snare, scavenge, etc.

I don’t want to ruin any of the story, but it fits so deeply into what you write about that I think you might want to check it out. It’s definitely aimed at the young adult market but it still a riveting read as an adult, and would be a very good gift for teens you know.

Thanks for all your resources and writing. – Brian M.



Economics and Investing:

Gold Rallying to $1,500 as Soros’s Bubble Inflates. (Thanks to B.B. for the link.)

From The Daily Bell: WSJ Discovers the Austrians & Boettke – but not the Mises Institute

Mort Zuckerman bemoans BHO‘s band of fools: The Most Fiscally Irresponsible Government in U.S. History. (A hat tip to Patrick S. for the link.)

Oregon man pleads bankruptcy fraud, hiding gold. Apparently, he failed Cache Construction 101.

From K.A.F.: Problem bank list climbs to 829

Items from The Economatrix:

Top Economists: The Second Great Depression Has Arrived

Struggling Cities Shut Firehouses in Budget Crises

Mish: 10 Leading Retailers Close Stores; Exodus of Small Retailers Amidst Signs of “Free Rent”

Blockbuster to File for Bankruptcy in September

Bernanke Says Economy Remains Vulnerable

Record 1-in-6 Getting Government Aid

Jobs Data to Show Severity of Economic Malaise. Wells Fargo: ‘Our view is that the recovery is petering out, not sliding into a double dip’

Obama: No Magic Bullet for Struggling Economy

More Million-Dollar Homes Falling to Foreclosure

HUD: No Decision on Reviving Homebuyer Tax Credit



Inflation Watch:

You’ll pay 6 to 7% more this weekend for your steak and hamburger.

This one is from Pravda (so my usual jaundiced eye proviso applies) Doomsday Scenario: Food Prices to Shoot Through the Roof.

Some more about the CPI hedonics trickery that I mentioned: Chris Martenson on fuzzy numbers.

Reader Jim P. mentioned that his local politicos in the Shenandoah Valley are doing away with a decal but keeping the fee! County Decals No More; $20 Fee Will Appear On Personal Property Tax Bills

JP Morgan: Food Prices Are Actually Rising, It’s Just That Retailers Haven’t Passed It On… Thanks to Don W. for the link.



Odds ‘n Sods:

My recent interview on Doc and Reginald Kaigler’s Watchmen podcast is now available via YouTube.

   o o o

LVZ in Ohio notes that there is a home brew Pelton wheel project described here: Micro-hydro Power Bucket.

   o o o

Rod McG. pointed to the BBC’s Dimensions web page as a useful tool for visualizing disasters.

   o o o

N.R.S. mentioned this opinion piece from a as Northern California newspaper: Maybe the NRA’s right to be paranoid.

   o o o

I noticed that Darrell Holland’s Long Range Shooting video is now available on YouTube. Buy a copy on DVD for your group’s training library!



Jim’s Quote of the Day:

"A wayfaring man, traveling in the desert, met a woman standing along and terribly dejected. He inquired of her. "Who art thou?" "My name is Truth " she replied. "and for what cause, " he asked, "have you left the city, to dwell alone here in the wilderness?" She made answer, "Because in former times, falsehood was with few, but is now with all men, whether you would hear or speak." – The Fables of Aesop, Henry Altemus Company, 1899



Note from JWR:

Today we present another entry for Round 30 of the SurvivalBlog non-fiction writing contest. The prizes for this round will 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 between $500 and $600, and B.) Two cases of Mountain House freeze dried assorted entrees, in #10 cans, courtesy of Ready Made Resources. (A $392 value.) C.) A 9-Tray Excalibur Food Dehydrator from Safecastle.com (a $275 value), D.) A 500 round case of Fiocchi 9mm Parabellum (Luger ) with 124gr. Hornady XTP/HP projectiles, courtesy of Sunflower Ammo (a $249 value), and E.) An M17 medical kit from JRH Enterprises (a $179.95 value).

Second Prize: A.) 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 $400, and B.) two cases of Meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value).

Third Prize: A.) A copy of my “Rawles Gets You Ready” preparedness course, from Arbogast Publishing, and B.) a Royal Berkey water filter, courtesy of Directive 21. (This filter system is a $275 value.)

Round 30 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.



Two Retreat Options Without Buying Land, by Brad in Texas

No one has to tell a prepper that land is expensive, and purchasing suitable retreat property without financing it is difficult or impossible for most. Worse yet, as things continue unraveling a rural alternative seems to become more necessary by the day. Here are two seldom-considered options.

Option 1: A Retreat May Be Looking For You

Country people, who own and live on vast swaths of rural America, are used to dealing with assorted disasters, ranging from crop failure to blizzards to droughts. That makes many of them closet preppers, at a minimum, and some have gone much farther with long-range disaster planning and preparations. So there is very likely an ideal retreat already set up in the general area you would like to use for your Plan B.
All that remains is the difficult part, hooking up with an aware landowner. But getting a seat at a well thought-out rural refuge may be one of the most important security measures you could take for you and your family.

As the owner of a fairly large Texas ranch with extensive self-sufficiency infrastructure in place, here is what I, and a lot of landowners with a similar situation, will be looking for:

Skills

Rural landowners are for the most part generalists, as they have to be to keep their operation running. It is the rare farmer or rancher who can’t weld, doctor livestock, run heavy equipment of some sort, fix a water well, keep an old pickup running, field dress and butcher game, plow a field, and two dozen more essential country tasks. Most also range from good to excellent shots, having grown up with firearms and shooting. They respect capable people, and know that nothing can replace skills and experience.

Being generalists, what we often lack are specialized skills. Here is a partial list of possibilities:

  • Medical professional
  • Communications/ham radio operator
  • Pharmacist
  • Combat veteran
  • Electrician
  • Machinist
  • Blacksmith
  • Small animal husbandry; dairy goats, sheep, or poultry.
  • Home crafts expertise such as spinning, weaving, knitting, or canning.
  • Experienced horseman
  • Mechanic
  • Wine maker/beer brewer
  • Veterinarian

Any practical expertise you have might well fill a void in a landowner’s plans and existing group. So much the better if you know an area from top to bottom; shearing, cleaning, carding, spinning, and knitting wool, for instance, or have a portable ham radio setup complete with wire dipole antennas for each band.

And it doesn’t matter so much whether you’re an experienced prepper with a deep larder or a rookie who has just become aware of a need to provide for his family. The important thing, from a landowner’s perspective, is having the specialized knowledge along with experience and whatever tools or materials you need to practice your particular skill. As long as a rookie skilled in a specific area was willing to acquire basic food and supplies, as far as I’m concerned being a newcomer is not a drawback.

As an example, here on our place with our existing people we have virtually every conceivable base well-covered, except for one. Though we’ve all had advanced first aid and have fairly extensive med supplies, we know our limitations and would consider adding a compatible medical professional, from an RN to an MD. And in our case, such a professional being a preparedness rookie would not be a drawback, as long as there was a willingness to store some basic supplies.


Help

Aside from specific skills, another thing always in short supply in the country is help. Many have the idea that country life is an idealized existence with a great deal of time spent gazing at sunsets and contemplating nature. Country life is great, but have no illusions about the amount of work involved. Most country people work extremely hard, often at two or three jobs just to keep things afloat economically. Sometimes one spouse works a “real” job with benefits while the other works the farm or ranch. With a never-ending list of projects, few landowners would turn down willing help. This is especially true of older landowners, who might welcome younger help willing to learn.

Most landowners actively preparing for hard times likely have a core group of family and friends already in place. An important reason they may consider adding you to their mix is that they might feel shorthanded in the event of social disruption, and so would especially welcome additional skilled help.

A landowner with hundreds or even thousands of acres, along with infrastructure, might well have property worth several million dollars on paper. Not to mention perhaps a lifetime spent working it and building it up. As could be expected, he might well be particular about who he invites to share in his hard work and foresight. But if you can be an asset to him and his family with your expertise and help, then he might be willing to make a seat available at his table.

Infrastructure

Hand in hand with help goes infrastructure. I guarantee that any preparedness-minded landowner has ideas for a project or two or three which would add to his place’s self-sufficiency. It could be that he hasn’t had time or the specialized knowledge to pursue it. Could be that he doesn’t have the extra funds available. So if you get to the point that you’re certain you want to join forces with a rural landowner and his existing group, the magic words go something like this, “If you had your choice, what are the main projects that would add to the long-term viability of our place?” A non-grid dependent source of water, such as a solar-powered well, might be high on his list. If so, be prepared with time, effort, and perhaps dollars to follow through and help make it happen.

Making contact with strangers can be a daunting task. Preppers are by nature reserved about discussing these topics with outsiders, observing OPSEC as naturally as breathing. So where to begin?

If you want to make contact with like-minded landowners, you will have to come out of your shell to some degree.

For communication purposes, the first thing you should do is set up a yahoo or gmail account specifically for preparedness email correspondence, along with a pseudonym. Never give out your real name or location initially.

Preparedness forums are one place to post an interest in a particular area of the country. Many such forums are nationwide in scope, while others focus on particular states or regions. Homesteading or skills related forums are another place to find potential landowners. One of my best friends I initially met online on a beekeeping forum. Being a beginning beekeeper, I asked questions of an experienced poster who was less than a hundred miles away. We corresponded for awhile and he finally invited me to his place to help work his hives. After meeting, it quickly became apparent that our mutual interests extended a lot further than just bees; intensive gardening, orchards, vineyards, hunting, small livestock, and much more. He and his wife are now a trusted part of our group, and would relocate here if the balloon ever goes up.

Another possibility is to run classified ads in county newspapers, a regional livestock magazine, or the co-op magazine from the electric company in an area in which you have an interest. Or perhaps run an ad in magazines such as Countryside & Small Stock Journal or Backwoods Home. Your ad should be low-key, and might go something like this:

“Licensed electrician and Army veteran seeking alliance with landowner in rural Colorado. With current storms brewing, would like to have a potential safe harbor for myself and two dependents.”

Most likely you will have numerous contacts which don’t pan out for some reason. The hurdle may be religion, politics, geography, demographics of the group, or nothing more than a personality conflict. Don’t get discouraged, press ahead and keep your eyes open. As the old saying goes, ‘the teacher will appear when the student is ready.’

If you find someone online or through ads who appears to be a possibility, after enough correspondence that you feel the property fits your needs and you will be comfortable with the landowner and his group, set up a meeting at a neutral, public site and go from there.

I’ve found that the best way to keep from having a misunderstanding is to have an understanding to start with, so these are areas you’ll likely want to cover in depth:

Things to ask the landowner:

  • Does he own his property free and clear.
  • Does he or a member of his group live there full-time.
  • How many other people are part of his group.
  • What are their specialized skills.
  • What supplies do they require members to have.
  • Length of time their stored preps will support them.
  • Can supplies be pre-positioned.
  • How many people will his property support.
  • How is water supplied for household and food growing.
  • What infrastructure is in place for housing you and your dependents, or will you have to supply your own.
  • Are there scheduled meetings of his group for work days or training.
  • Does the group have shortcomings in areas that you or your dependents could learn, i.e. herbal medicine, cheesemaking, gunsmithing, canning, etc.
  • What can you do to help improve his property. This is a polite way of asking what he views as the weakest aspects of his place for long-term self-sufficiency.

Things the landowner will ask you:

  • Your credentials and experience in your area of expertise.
  • Supplies you have stored to practice your particular skill.
  • Number of dependents.
  • Is your spouse/significant other on board.
  • Medical issues or prescription drugs taken.
  • Amount of preps you currently have on hand.
  • Do you have a criminal record.
  • What other practical skills do you or your dependents have.

Additional things that you should discuss:

  • Who is ultimately in charge, how decisions are made.
  • Under what circumstances a bug-out occurs. What are the triggers – TEOTWAWKI or simply losing your job.
  • Who will have ownership of items you pre-position: food supplies, travel [or house] trailers, bulk propane storage tank, etc.
  • Precisely who you are allowed to bring. The landowner will likely be very specific on this point, having thought through the supply and group dynamics implications of members showing up with unannounced in-laws, friends, or co-workers.

It’s no secret that there are some real nutjobs out there, especially on the web, so exercise plenty of caution while searching. But there are lots of good, honest people too, everything from prepped landowners to complete rookies, who are trying to do nothing more than provide for their families in troubled times. And to my mind, if the storms do come, security for your family will certainly be easier and much-improved with a skilled group in a rural setting. So making the effort to find a suitable property and building trust now, before the need, only makes sense.

Some additional thoughts:

  • Never advocate or do anything illegal.
  • Be very wary of people with extreme positions on religion, politics, or race.
  • Be very wary of people who talk about nothing but firearms and ammunition.
  • Be completely honest about your capabilities, experience, and level of preparedness.
  • The majority of people are all talk and no action, don’t be one of them.

Option 2: Leasing

Leasing property is another seldom discussed retreat option. Land is leased all the time, for timber, grazing, hunting, or farming, so why not consider this alternative for a retreat?

Naturally, you probably don’t want to approach a landowner by saying you want to lease his property in case the wheels fall off of the economy. But a lease is far cheaper than buying land, usually not much more than the actual property taxes. And a lease gives you a legal right to use the land for the stated purpose.

A hunting lease is probably the simplest and most obvious choice, as a game-rich area is a big plus. A hunting lease framework and price structure likely already exists in most places, so searching for one through newspaper ads or contacting local realtors, chambers of commerce, or feed stores will raise no eyebrows.

Here in the Texas Hill Country, a hunting lease will run about $5 to $10 per acre per year, so 500 acres would lease for between $2,500 to $5,000 per year. Far cheaper than purchasing the same property, and very reasonable if divided among numerous people in a family or group.

You should make sure that the lease is structured so you have access year around, not just during hunting season. Ideally, the landowner would be absentee and not live on the property, which would give you pretty much free rein during a full scale bugout. There should be a reliable source of water, be it spring, lake, or well. Some type of accommodations would be nice, but travel trailers or campers would suffice.

It might be possible to include a lease provision so that you could move in a [CONEX] shipping container. As far as the landowner was concerned, this was to store your camping gear, four-wheelers, etc., but could also be used to store non-perishable bulky items like barrels of wheat, rice, ammo cans, etc. If such a storage option is not available, consider renting a storage unit in a nearby town to store bulky, hard to move survival items.

The down side of a lease is that you can’t improve the place like you could if you owned it. No garden plots, no solar wells, no permanent structures. But a lease also has none of the restrictions of land ownership, giving you much more flexibility. If your economic situation changes for the better, for example, or if your marital status changes for the worst. The composition of your survival group may change drastically, either getting larger or smaller. Your job or family situation may require a move halfway across the country. With a lease, no problem, but if you own the land, especially if it has a mortgage, then it could be a major headache.

Preppers should pride themselves on thinking outside the box. A paid-for and fully functional homestead is the ideal situation, but is not a realistic option for most people. So hopefully these thoughts on retreat alternatives will give you ideas for putting together a Plan B for you and yours.

JWR Adds: One other possibility is a lease option/purchase on a piece of retreat property that you’d like to buy, but that you cannot presently afford to buy outright. This is an advantageous strategy for inflationary times. If you can lock in a set purchase price now, while inflation is low, then you might have the opportunity to exercise the purchase option at later date, when inflation is rampant. (In just a few years you may have the chance to buy the property with cheap dollars.)



Letter Re: A German Army Think Tank Sees Dire Consequences for Peak Oil

Hello Mr. Rawles,
A report on the political and economical impacts of Peak Oil by a think tank of the German Army was recently leaked to the Internet. It is, of course, in German. The think tank draws pretty drastic conclusions. I currently do not have the time to translate the essence of it, but this might be useful or interesting at least to your readers who are fluent in German.

Here is a summary: Bundeswehr-Studie warnt vor dramatischer Ölkrise, [also in German] by Der Spiegel.

Kind regards, – Chris K. in Germany

JWR Replies: Thanks for alerting us to that article. Here is a link to a very rough automated English translation: Bundeswehr study warns of dramatic oil crisis.



Economics and Investing:

Bernanke: Fed Will Take “Unconventional Measures” If Needed. “…the Fed will consider making another large-scale purchase of securities if the slowing economy were to deteriorate significantly and signs of deflation were to flare.” (A hat tip to Deborah M. for the link.)

Its Official: China is Unloading its Treasury Bonds

John Williams of ShadowStats Says Economic Data Will Get Much Worse.

Trapper Mike sent this: Ron Paul questions whether there’s gold at Fort Knox, New York Fed. To clarify, part of his concern is that physical gold may indeed be stored there, but that it might actually belong to other parties!

Items from The Economatrix:

Government Set to Confirm What Many Feel: Economy at a Standstill

Stocks End a Brutal August with Meager Gains

Snapshot of an Economy About to Get a Lot Bleaker

Youth Employment Lowest Since 1948

Fed Seeks Delay of Bank Data Release

US Warned by S&P its AAA Credit Rating at Risk

Democrats Face Economic Facts: Updraft Unlikely



Inflation Watch:

In 2008, shortly before the currency was effectively abandoned, the inflation rate in Zimbabwe hit a ludicrous inconceivable 897,000,000,000,000,000,000,000 percent per year. (An 89 sextillion percent inflation rate!) So now instead of Zim dollars for practical currency, they are using the South African Rand, the Botswana Pula, the British Pound Sterling and the United States Dollar for most transactions. It will be ironic, if and when the US Dollar begins to inflate. Like us, Zimbabweans may soon feel “stuck”, holding withering US Dollars. OBTW, some bad news from Zimbabwe, that came to us by way of Cathy Buckle’s blog: “Enter into all of this the pending compulsory 51% indigenous shareholding of companies and the waves start flooding in over the edge of the floundering boat. Last weekend the Indigenisation and Empowerment Minister, Saviour Kasukuwere, threatened to close down 9,000 companies because they hadn’t yet submitted indigenisation plans to his ministry. Apparently only 480 out of 9, 557 companies had put in the paperwork that effectively gives control of their companies to complete strangers.”

Reader Gina A. wrote to mention that the cost of her prescriptions medicines (some of them fairly exotic) had skyrocketed in the past 18 months. She asked for some solutions. My advice? Read this book: 101 Ways to Save Money on Health Care.

Carla P. notes: “I usually watch the sale papers when buying groceries. I noticed a great price at one of our stores for one of the major brands of peanut butter: $1.39. The trouble is, the jar had gone from an 18 oz. size to a 16.3 oz. size. About a 10% decrease.”

SurvivalBlog reader “Booth” chided me for harping about inflation, when the government’s key inflation figure–the Consumer Price Index (CPI)–is currently at just 1.94% (in figures calculated through June, 2010). The problem with the CPI is that it is so heavily manipulated that it has hardly any useful meaning. The methodologies used for calculating the CPI are fundamentally flawed. For example, it uses hedonic “adjustments” to the price measures to “allow for quality changes.” For some details, see the analyses by economist John Williams (of ShadowStats) and Barry Ritholtz. In my estimation, the real rate of cost of living inflation in the US is somewhere north of 5%. And if you are saying to yourself, “Well, 5% isn’t so bad”, then consider the Rule of 72. At 5% currency inflation, you are robbed of half of your purchasing power every 14.4 years. So it is no wonder that so few people now keep money in banks in passbook savings accounts. Those provide a negative rate of return, when you consider the real world inflation rate. Inflation is orchestrated theft and a hidden form of taxation, plain and simple.