Economics and Investing:

The credit derivatives plot thickens: New York Fed’s Secret Choice to Pay for Swaps Hits Taxpayers. (Thanks to David V. for the link.)

Russia delays sale of 50 tons of gold. (A hat tip to Trey for the link, by way of MineWeb.)

GG sent this: Stimulus jobs overstated by thousands

SurvivalBlog’s Editor at Large Michael Z. Williamson spotted this New York Times piece: Hard Work, No Pay. It includes this memorable quote: “I am not unemployable. I have a master’s of fine arts and spent two years in the Peace Corps.” Mike’s comment: “Er…I thought that was the definition of unemployable!”

Ben L. liked this article: Gold Market Reaching The Breaking Point

Items from The Economatrix:

Gold to Rise to $2,000 Amid “Massive” Inflation, Superfund Says

Paul Craig Roberts: Are You Ready for the Next Financial and Economic Crisis? “Evidence that the US is a failed state is piling up faster than I can record it. One conclusive hallmark of a failed state is that the crooks are inside the government, using government to protect and to advance their private interests.”

Goldie Sachs Defends Controversial Trading Practices

Recession Declared Over But Job Losses Mounting

Home Foreclosures Jump in Previously Untouched Cities

Credit Card Hikes Raise Congresses’ Blood Pressure

Unemployed Tap their 401ks



Odds ‘n Sods:

A new 2010 Survival Calendar is now available. I was delighted to see that the designer included one page devoted to SurvivalBlog. Check it out! OBTW, you can use the coupon code “survivalblog” (without the quotes) to get a $4 discount on checkout.

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Brian H. wrote me to mention that Gene Logsdon’s classic 1977 book “Small-Scale Grain Raising” is back in print in an updated paperback edition. Be sure to order the Second edition.

   o o o

Reader HPD sent this: Cash for Clunkers costs taxpayers $24,000 per car. And Damon sent this, on this article, with a similar theme: The Stimulus Saved 650,000 Jobs? I’m Not Impressed. ($230,769 to create each job? Only a Federal bureaucrat could call that a success.)

   o o o

Wal-Mart Starts Selling Caskets, Urns On-Line. At least they are made in the USA, unlike most of the other products sold at what my brother calls “Great Wall of China Mart”.



Jim’s Quote of the Day:

“China is now a big buyer of gold and silver for their banks. Chinese television has been recommending that everyone should go to the bank to buy gold and silver. That’s 1.3 billion people getting propagandized. This is a major bullish factor for gold. Perhaps the bankers have met their match.” – Howard J. Ruff



Note from JWR:

Today we present another entry for Round 25 of the SurvivalBlog non-fiction writing contest.

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.) and C.) A HAZARiD Decontamination Kit from Safecastle.com. (A $350 value.)

Second Prize: 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 $350.

Third Prize: A copy of my “Rawles Gets You Ready” preparedness course, from Arbogast Publishing.

Round 25 ends on November 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.



Retreat Security: I Am Your Worst Nightmare, by Jeff T.

I am the leader of a band of 8-to-12 looters. I have some basic military training. We move from place to place like locusts devouring everything in our path. My group is armed with light weapons and can develop and follow simple plans of attack. We take what we want by force of arms. We prefer none of our victims survive because that could cause problems for us in the future.

It has been six months since the grid went down. You and the other five members of your party have settled into what may be a long grinding existence. The every day tasks of growing and gathering have now become routine. The news from the outside is extremely limited but you don’t really miss it much. Life is simple but physically demanding.

Although things may seem stable you will need to keep your team focused and alert. This is your first and most important layer of defense. You should hold an immediate reaction drill once per week. Keep things simple. Practice a specific response to such threats as injury, fire, attack and evacuation. Despite the challenges you must maintain contact with those around you such as neighbors for vital clues that trouble is brewing. Regular monitoring the radio will be critical in providing an early warning of trouble. You may be able to safely interview refugees with risking your party. Keep in mind the information you get from them may not always be reliable.

While you have been farming I have been learning the best tactics to employ to seize your property and your goods. I have been refining them since we hit the road right after the lights went out. I have conducted eight “hits” so far and have been successful seven times. Here are some of my “lessons learned”.

Intelligence gathering and target selection is critical to my success. Targets include those who have large quantities of fuel, food and other valuable supplies. My posse is constantly questioning anyone and everyone we contact searching for this our next victim. Anyone who has ever had knowledge, even second hand, of your preparations is someone of interest to me. I may approach them directly or indirectly. If anyone knows something I will find out about it. Who seems well-fed? Who still has transportation? Who has lights? Who was prepared? Where are they exactly? Somebody talks, either in person or on the radio. They always do.

We search for victims night and day. During the day we are listening for the sounds of machinery, cars, tractors, gunfire or generators. Day or night without a lot of wind those sounds can carry for miles. At night I look for any sort of light. Even a small flash indicates somebody with electricity and that means a rich target. I always have somebody listing to the scanner for any news, leads or insecure chatter.

Operational Security (OPSEC) is an important concept for your entire group to understand and maintain. If somebody outside your circle doesn’t have a real need to know about your plans, preparations or procedures then they shouldn’t know period. Develop a cover story and live it like was a bulletproof vest. It is no less important to your protection and survival. During an event you need to blend in with the surrounding environment. Carefully observe noise (such as generators and other engines) and light discipline especially at night. If you need to test fire weapons do it in one sequence to avoid a prolonged noise signature.

Once I find and target you reconnaissance of your retreat is my next step. Only a fool would try to rush in and try to overwhelm a group of “survivalists”. We had a bad experience with that during our second hit. Now we spend at least a day or two trying to size up a large opportunity and the best way to take it down. I will observe retreat activity from a nearby-concealed position. I will get an idea of your numbers, weapons, routines and so much more by careful surreptitious observation. If your group seems alert, I will try and trigger a false alarm with a dog or child to watch your reaction to a threat. That helps me know how you respond, where you are strong and how to attack. I may also obtain a topographical map of the area to identify likely avenues of approach and potential escapes routes you will try to use. I may coerce your neighbors into uncovering a weak spot or access point or other important intelligence. I also have a Bearcat handheld scanner. I will be listening for any insecure chatter from your radios.

Regular patrols at irregular intervals focused on likely observation points and avenues of approach could keep me at bay. You could put down sand or other soft soil in key choke points as a way of “recording” if anyone has recently traveled through the land. Dogs, with their advanced sense of hearing and smell are able to detect and alert you to intruders well in advance of any human. Motion sensing IR video cameras as a part of a security plan could play a part in your layered defense as long as you have power. A 24 hour manned observation point equipped with high quality optical tools is a must. It should be fortified and if possible concealed. It should have a weapon capable of reaching to the edges of your vision. Seismic intrusion devices, night vision and thermal imaging are phenomenal force multiplying tools. They can give you critical intelligence and warning. You should use them if you have them. Understand they are not fool proof and I can often neutralize them if I know you have them.

These tools and techniques provide you reaction time. Time to plan your response and time to execute that plan. Recognize that a “defender” is always at a disadvantage. By definition a defender will be reacting to my attack. Modern warfare has emphasized the ability of the attacker to operate faster than opponents can react. This can be explained by the OODA loop. Below are the four steps of the classic OODA loop. These are the steps a defender goes through when under attack.

1. Observing or noticing the attack.

2. Orient to the direction, method and type of attack.

3. Deciding what the appropriate response will be.

4. Acting on that decision.

As an attacker I will try and operate at a pace faster than you as a defender can adjust to. I will change my direction, pace, timing and method to force you to continue to process through the OODA loop. This creates confusion and wastes your precious reaction time. As a defender you will need to disrupt or reset your attackers timing with a counter-attack. When you are successful you become the attacker. Your defensive plans should utilize and exploit this concept. Here are a few scenarios:

1. Snipe & Siege

I will begin the attack when I can engage at least half of your party’s military age personnel in one coordinated effort. I will infiltrate my team into concealed positions around your retreat within 50 to 75 yards. I will target any identified leadership with the first volley. Two thirds of my people will be engaging personnel. The other group will target communications antennas, surveillance cameras and any visible lighting assets. I want your group unable to see, communicate or call for help. The members of my band will each fire two magazines in the initial exchange. Two thirds of my group will change to new concealed positions and wait. One third will fall back into an ambush of the most likely avenue of escape. We will stay concealed and wait until you come out to attend to your wounded and dead. We repeat the attack as necessary until any resistance is crushed.

Ensure you adjust the landscape around your retreat so that I don’t have anyplace offering cover or concealment within 100 yards of your residence. You can create decorative masonry walls that can be used to offer cover for personnel close to your residence. Fighting positions can be built now and used as raised planting beds and then excavated for use in the future. These can be extended or reinforced after any significant event. These structures or other measures such as trenching must be sited carefully to avoid allowing them to be used effectively by an attacker if they are overrun.

2. Trojan Horse

For one hit we used an old UPS truck. We forced a refugee to drive it to the retreat gate. We concealed half our group inside the truck. The truck was hardened on the inside with some sandbags around the edges. The other half of our group formed an ambush concealed inside the tree line along the driveway. We killed the driver to make it look good and had one person run away. Those preppers almost waited us out. After nearly three hours they all walked slowly down the driveway. They were bunched up in a group intent on checking out the truck and driver. It was like shooting fish in a barrel.

They could have worked together as group to sweep the area 360 degrees around the truck and they would have surely found us. A dog would have also alerted the residents to our presence. They could have taken measures to eliminate the vegetation offering us concealment on the road near the gate. They could have used CS gas or something similar to “deny” any suspicious areas. Lastly they could have done a “reconnaissance by fire”. Shooting into likely hiding spots, including the truck, trying to evoke a response. They should have established an over watch position with the majority of their group. This over watch group would have provided visual security and an immediate response if there were an attack. They were not expecting any additional threats. They didn’t consider that there might be additional danger lurking nearby aside from the truck and they died.

3. Kidnap & Surrender

A few weeks ago we surprised and captured a couple of women out tending a garden. It was totally by chance. We were traveling through a very rural area on our way to another town when somebody heard a tractor backfire. We immediately stopped and I sent a small team to recon the noise. They bumped into a small party tending a field at the edge of their retreat. They seized two women and immediately dragged them back to our vehicles. We began negotiations by sending a finger from each one back to the retreat under a white flag. The rest was easy.

This didn’t need to happen. Better noise discipline would have kept us from discovering their retreat. Some simple boundary fencing or tangle foot could have delayed us. The women should have been armed and aware of such a threat. If they has established an over watch for the garden they could have engaged us before we took our hostages or at least alerted the others that there was a problem. They also could have had a quick reaction SOP developed prior to this incident. That Quick Reaction (QR) force could have followed the kidnappers back to our vehicles and set up an ambush of their own. Rural retreat security is a full time job. If you snooze you may lose everything.

4. Fire and Maneuver

I don’t like this option but sometimes the prize is just too tempting. We typically infiltrate quietly at night to prearranged start points. We begin our attack just before dawn when your senses are dulled by a long night watch or from sleep. Based on our reconnaissance we divided your retreat into positions or zones that need specific attention. We prepare for battle by using an air rifle to target any lights or cameras. Our first priority is to engage any LP/OP site and destroy or degrade them as much as possible. I split my forces into two supporting groups. One group keeps the target position under constant fire. The other group also fires and maneuvers, closing on the target and destroying it with gunfire or improvised weapons. Many times these positions only have one occupant and the task is relatively easy. Often these positions are easy to spot and are too far from each other to provide any effective mutual support. We will work from one position to the next. In the darkness and confusion most of the defenders are disoriented and ineffective. They fall like dominos. We have also used motorcycles to negotiate obstacles and speed through cuts in the perimeter fence. Then throw Molotov Cocktails into any defensive position as they roar past. If you fall back into your residence we will set up a siege. If we can maneuver close enough, perhaps by using a distraction, we will pump concentrated insecticide into your building or we may introduce LP gas from a portable tank into the house and ignite it with tracer fire.

If there was enough warning time from your OP you could execute a pre-planned response. Your planned response should be simple, easy to understand and execute. Half your group occupies your fighting positions, two to a position. The rest of your party establishes an over watch and concentrate its fire at the enemies trying to fix your positions. If you had more than enough prepared positions the enemy might not know where to attack. It would also provide more flexibility in your defense based on the direction of attack. I would use Night Vision if available or illumination from flares or lights as a last resort. Rats hate light.

Usually people keep main access points blocked from high-speed approach. Likely avenues of approach should also be blocked or choked and kept under observation. Remember though what keeps me out keeps you in. Typically the common techniques of parking vehicles in roadways will only delay my approach not stop it altogether. An ordinary 12-gauge shotgun, shooting slugs, can stop most types of non-military vehicles at close range.

Don’t forget the threat of fire or other non-traditional weapons in your defensive plans.

You could create the illusion of a “dead end” for your main access road by positioning a burned out trailer home or a couple of burned out cars at the false “end” of the road. Concealing the fact that the road actually continues to your residence.

Lastly, develop a plan to evacuate and evade capture. When faced with a significantly superior force it may be the only viable option. This should include simple, reliable communications or signals such as three blasts on a dog whistle. Your fighting positions and barriers need to be constructed to allow coordinated withdrawal in an emergency. You should establish a rally point and time limit to assemble. I believe this should be a priority in your practice drills. During a real emergency you may be able to rally, rearm and plan your own version of the “snipe and siege” to retake your retreat.

Key messages:

Your rural retreat defense can be visualized as a set of concentric rings:

  • Location – Location – Location: High and remote are best
  • OPSEC – Think of it as a form of armor or shield: Practice it and protect it.
  • Observation Post / Listening Post: Your first best chance to counter attack
  • Gates / Fences / other barriers: May slow me down. Might keep you in.
  • Fighting positions: Must provide mutual support and allow for evacuation.
  • Residence: Last line. Don’t become trapped
  • People, Planning and Practice

Remember:

  • An aggressive and unexpected counter strike can win the battle.
  • Stay alert for multiple threats or diversionary tactics.
  • Criminals excel at feigning weakness to lower your guard.

Don’t underestimate me.

Reading for further study:

The Defence of Duffer’s Drift, by Major General Sir Ernest Dunlop Swinton (1905)

US Army FM 5-15 Field Fortifications

US Army FM 5-103 Survivability

Online OODA Resources



Letter Re: University of California Disaster Preparedness Videos

Jim:

While scanning through iTunes U, I found a television (or audio) series from University of California TV on disaster preparedness. They are professionally produced and contain a wealth of information about about emergency response systems are intended to work. Included here are four of the fifteen or so shows that they have put together. The ones I have included are Natural Disasters, Chemical and Biological Agents, Pandemic Influenza and Emerging Infections and Disaster Volunteerism

They go over several case studies that happened in California, but talk about organizations generally enough that it is applicable to most areas with advanced emergency response systems. At the end, I have included links to more shows in UCTV disaster preparedness series.

Here are some video links and excerpted brief summaries:

Disaster Preparedness: Natural Disasters

Transportation and care
Multiple disasters co-existing (earthquake, fire, flood)

Wild fire
-larger then expected

Family Preparedness
-Family network – getting everyone involved
-List of material that needs to be packed to go
-Long distance phones can work (call to foreign county, deliver message, foreign county calls to local number you could not reach), calling local people sometimes doesn’t when the disaster is local. This would appear to be a failure of the phone system to update their routing tables dynamically.
-Define a meeting place for your family
-Stores and supplies at home
-Tent, stove, propane, water
-72 hour critical supply of food, medicine and water
-Laundry – Something I had not thought about
-Communications and information management, one of the most difficult things
-Real time information systems – where the fire is, what the evacuations plan is
-After action report – learn from what worked and what didn’t
-Reverse 911 only works for land lines.
-Multiple layers of communications, multiple contacts per person
-“Alternative care sites” shelter, Fairgrounds, school gymnasiums, arenas, animal shelters
-Special needs patients, elderly, dialysis
-First day great, everyone helping one another – Day 2 short tempers – social workers and behavioral specialists needed, neighborhoods forming
-It is mentioned *many* times that people will not leave their pets behind. Include them in your preps.

Earthquake
-Single point of contact – single voice speaking for a set of resources
-If you build it, they will come. Where lights are on, people go there.
There are several phases
1. Immediate injuries – Crush injuries, Amputations, Head injuries, airway obstruction
2. Secondary illnesses – Blood pressure medication, diabetes medication, increased rate of heart attack and child birth
95% are rescued by local responders and volunteers in the first 24 hours.

Disaster Preparedness: Chemical and Biological Agents

Disaster Preparedness: Pandemic Influenza and Emerging Infections

Disaster Preparedness: Disaster Volunteerism

More Programs in Emergency Preparedness / Emergency Medicine

Regards, – Ben M.



Economics and Investing:

Tom B. and “Word” both sent us this: Tax refugees staging escape from New York. Tom B. described as “voting with their feet.”

Julius suggested an amazing Summary of US Foreclosure Activity. Wow! One in every 23 homes in Nevada is in foreclosure!

An interesting piece over at Housing Storm: Contradictions and Symptoms of the Great Depression

Items from The Economatrix:

GM Seen Posting Sales Again

Stocks Turn Lower as New Home Sales Fall

New Home Sales Fall a Surprising 3.6%

Treasury, GMAC in Talks for Third Round of Aid

Durable Goods Orders Rise 1% in September (Whoopee! Release the balloons!)

Energy Prices Slide on Surprise Jump in Gas Supply

Worsening Job Picture Fuels Slide in Confidence

Roubini: Carry Trades Fueling “Huge” Asset Bubble

Weiss: The War on the US Dollar

Iranian Oil Bourse Opens

UK: Credit Card Companies Will be Forced to Clean Up their Act


Regulators Prepare for the Next “Big One”


It Will be Difficult for the Housing Market to Return to Normal



Odds ‘n Sods:

Reader Beth T. flagged this news item: Explorer Ernest Shackleton’s whiskey stash has been discovered in Antarctica, over 100 years after his failed expedition to the South Pole.

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Kimberly suggested an article that Kellene Bishop wrote on her blog site, titled: Why I Worry About You. Kimberly’s comment: “It would be a great article for your readers to send to friends who are sitting on the fence or are completely unaware of, or the extent of, current challenges facing this country and her people. It is a ‘heart to heart’ message.”

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“Word” was the first of several readers to send this: Toronto musician dies after coyote attack in Cape Breton. If just two coyotes can do that, then what could a whole pack of wolves do? Always a carry a gun when you step off your front porch! Don’t forget that predators come in both two-legged and four-legged varieties.



Jim’s Quote of the Day:

"Some people think the Federal Reserve Banks are U.S. government institutions. They are not … they are private credit monopolies which prey upon the people of the U.S. for the benefit of themselves and their foreign and domestic swindlers, and rich and predatory money lenders. The sack of the United States by the Fed is the greatest crime in history. Every effort has been made by the Fed to conceal its powers, but the truth is the Fed has usurped the government. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will." – Congressman Charles McFadden



Letter Re: Comments of Storing Coffee and Grinding Whole Wheat Flour

Mr. Rawles,
In your new book [“How to Survive the End of the World as We Know It“], which I ordered on “Book Bomb day” you mention that coffee is hard to store, and suggest using the vacuum-packed bricks. I have found that the key to stocking up on coffee for the long term is to buy green coffee beans that have not been roasted yet. They have the potential to keep for up to two years in just a burlap bag, or much longer if actually packed like you would wheat berries. Roasting can be an art in itself, or as simple as frying in a pan. (Just the beans, no oil of course.) A source for roasting information and ordering of green coffee beans is Sweet Marias. I roast my beans using a Fresh Roast II coffee roaster every few days, and plan on roasting them in a cast iron skillet, should TEOTWAWKI occur. Wholesalers of green coffee beans exist, and the beans can be had for from $2.50-$3.50 a pound in 130 pound bags. Not to mention, fresh roasting the coffee beans actually improves the flavor about three times as much as fresh grinding the coffee beans do!s

The second item regards sifting fresh ground whole wheat flour in order to obtain fluffier whiter flour most people have been led to prefer. Legend, Inc. offers Geologic soil sifters in varying grades of fineness. A #20, #30 and #50 allow me to obtain flours fine enough to bake cakes from hard white wheat berries ground with a Country Living grain mill. I still make whole wheat bread most often, but it’s nice to have the ability to make a nice cake or French bread. Some day without power and from a hand cranked mill, a nice cake could be a real morale booster. Thank you and God Bless, – Edward T.



Letter Re: Why No Retreat Recommendations for the Northeastern US?

Hi,
I’m curious as to why you have not included the Northeast in your list of Retreat Areas–like Vermont, New Hampshire & Maine, very good candidates. Especially the northern areas of these states. Regards, – Wayne B.

JWR Replies: You might have missed this subsection in my Recommended Retreat Areas page:

Look West of the Missouri River

As evidenced by Hurricane Katrina in 2005, population density is perhaps the most crucial factor to consider when selecting a safe haven. The big cities on the Gulf Coast became hell holes, whereas the small towns got by fairly well. I know that this will cause acrimony with a lot of my readers who live east of the Missouri River, but the plain truth is the East has too much population! The northeast is also downwind of some major nuclear targets. Unless you are among the uber-rich and can afford to buy an elaborate fully hardened bunker with HEPA filtration deep in the Smoky or Appalachian Mountains with a five year food supply, then I firmly believe that you will be safer west of the Missouri River. That is just my opinion, so your mileage may vary (YMMV).

However, before you write me a tirade about how wrong I am and how safe you’ll be in upstate New York, please re-read my August 5th through August 10th, 2005 posts in the early SurvivalBlog Archives. Also, take a long hard look at the “Lights of the U.S.” photo maps at: DarkSky.org. A picture tells a thousand words.

I stand by that guidance. Yes, I continue to get flack about it from easterners. But they’d take the time to travel through the western US and see just how lightly populated much of it is, I think they’d change their tune.

If your work and family situations allow it, then move to one of my recommended retreat areas!



Letter Re: A Canadian’s Refreshing Travel Through the Western United States

JWR,

My son (17 years old) and I, along with my dad and sister who live in Washington State just completed a 4,700 mile road trip on motorcycles, traveling down through British Columbia. We met up with my relatives in Washington, then continued down into Oregon, cutting down to Northeastern California, over into Nevada, down into Utah then to the Four Corners and back up to Idaho cutting across to Western Washington and saying good bye to them before we continued back home. My point is, we saw a lot of empty land, met a lot of good people, saw some close friends who share same beliefs and expectations of what is to come; and we were greatly encouraged!

Sometimes living in an isolated community, you get to feeling stagnant, lethargic or complacent. Seeing the western US and those who live in the country was refreshing. And, it is a small world. We ran into people who knew people…

It was very good to see others and hear them firsthand relate their preparations for the future. I spent some time with one friend, and we spent the afternoon shooting one of his firearms, an FN-FAL. What a great experience! This was on his property his own range complete with 300, 400 and 500 yard gongs. (We shot at the 300, and found that the FN is a great MBR!)

In His Care, brothers always, – Ray



Two Letters Re: Protein Powders as Emergency Survival Foods

Mr. Rawles-
D. in Dubai has made an excellent point in regards to protein powders/meal replacement drinks. You are correct in that the ‘Ensure” and other medical-oriented drinks are a bit more balanced; however they tend to be lower in protein per ounce than the ‘sports’ type of drinks.

That said, The bulk purchase of a powder that is palatable to you and your family is an excellent means to balance out your bulk food stores, such as pastas, rice, etc. There also tends to be excellent vitamin and mineral contents in their drinks as well. A caveat: go to a store and ask for samples to taste – this is important! Some are simply nasty, some are delicious. Also, start small. Begin with just a fraction of a serving, and use it regularly. This will adapt your digestion to a new food, and the transition will be much smoother.

Once you find one you like, stock up. The prices are reasonable now, plan accordingly! – Sled

 

Mr. Rawles,
The recent Ensure powder link to Amazon (for one of their partner retailers) at $92.34 + $5.90 shipping is more expensive than buying it directly from Abbott Labs (the manufacturer) at $65.93 with free shipping on orders over $50. I’ve also seen it on the beta test of the grocery web site for ChinaMart (Walmart.com) but it’s not there today.

Abbott also has offers on their site for “Buy three, get one free” coupons for local brick-and-mortar retail purchasers.

They also offer free sample coupons and other discount coupons.

In my opinion, the Butter Pecan is the best and Cafe Latte is a close second. But avoid the strawberry flavor! Thx. – Kent M.



Letter Re: Open Enrollment for Many Medical Savings Plans

Dear Mr. Rawles,

Greetings! I saw a blog letter mentioning FSA (Flexible Spending Accounts)-one medical plan that helps the average person. Basically, one’s employer (private, public, etc.) has some amount taken out before taxes and this money is put into a plan with a pre-set amount that must be used by the end of the plan year.

Okay, what many people do not know is that IRS laws allow the following:

Once the plan is started, the full year’s funds are present, even if you have not had that total amount saved up yet. Example: I set the plan to $1,000, and at the start of my plan $20 is taken each paycheck (50 weeks). But, I can start applying the plan immediately for the full $1,000. These funds are used to reimburse co-pays, over the counter drugs, reading glasses, or other prescription and generic [medication] costs.

Here are two important points I found out last summer:

First, the medical supplies reimbursed for by this plan include medical supplies, including Quik-Clot, Celox, (Yep! Even the Quik-clot for nose bleeds). Other first aid supplies (usually not found in the local drug store-but commonly found in survival catalogs) are covered (check with the FSA firm handling the reimbursements first!).

I got lots of Band-Aids, Celox, and Quik-clot this summer.

Oh yes, my former employer admitted (yes, I called both the FSA company and my employer at city hall to confirm), that due to IRS laws, a person can access the entire amount for that year, get reimbursed for all of it, and leave employment before the completion of employee payments are made-and no refund is required from the employee by either the former employer or the FSA company! This may prove useful for many people who have these plans and think that TEOTWAWKI is coming soon. [JWR Adds: But purchasing supplies without the intent to fully fund a FSA would be unconscionable.]

Also, real survival medical supplies can be obtained (again, check with the FSA first!) with the plan covering the expenses. (From your pre-tax dollars, of course!).

Food for thought. – L.F. R.



Economics and Investing:

Treasury Sales Loom, but Demand Is There. $123 Billion Worth in One Week! Not to worry, they can always make it look like they all sold to non-puppet buyers. (Thanks to loyal content contributor GG for the link.)

Brad C. found this Business Week article interesting: The U.S. Metros Least Touched by Recession. Brad’s comment: Note that none of the cities in the top ten are on the East or West Coast, and that they are all in “Fly Over” country. Once again, free states lead the way. JWR Adds: Also note the correlation with my Recommended Retreat Areas page.

Our Editor at Large Michael Z. Williamson suggested this piece posted over at Zero Hedge: The Next Step in the Bank Implosion Cycle??? The sheer volume of bank derivatives now in play is staggering!

Items from The Economatrix:

Global Exposure in Derivatives in Excess of One Quadrillion Dollars

US Foreclosure Crisis Spreads to New States

Awash in Nonsense
(The Mogambo Guru)


Massive Airline Cuts as Business Travel Plunges

New Fed Role: “Super Cop” to Police Banks