Economics and Investing:

Karen H. kindly sent us the following items:

Bank of America Posts Third-Quarter Loss on Defaults. “The idea that the financial crisis is over is a fantasy and it looks like the numbers bear that out,”

GE Profit Falls 45% as Revenue Trails Estimated

Buyers Suing Trump in Miami Condo Glut as Values Return to 1989 “There’s no recession in the real estate litigation community,”

Focus growing on keeping the jobless in their homes.

A Perfect storm’s brewing to cool petroleum demand.

Items from The Economatrix:

Workers Still on Job, But Making Half as Much

Delaying Foreclosure Can Lead to Ethical “Heebie Jeebies”

What’s Your Black Friday Shopping Plan?

US Stocks Rise as JPMorgan’s Profit Helps Dow Exceed 10,000

Soros Says US Will Be Drag on World Growth

Germany Said Poised for a Full Recovery in 2010

October ZEW Decline Points to Weak German Recovery



Odds ‘n Sods:

Reader Mark K. sent a link to an interesting chart that shows the sources of state revenue. This could have a bearing on your choice of retreat locales. (As I’ve previously mentioned in SurvivalBlog, folks that want to truly “live off the land” need to consider property tax and sales tax rates carefully.)

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Chris mentioned this tidbit: Lone Star Energy: Why Texas Will Resist the Call for a Unified Grid.

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Reader HH sent this article: The Case For Withdrawing Nickels. It adds credence to my advice on stockpiling US five cent pieces as an inflation hedge. Once silver zooms up past $25 per ounce, I predict that nickels will become the poor man’s alternative to silver!

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Jerrold spotted this article: Harrods to sell gold bullion for first time.



Jim’s Quote of the Day:

“Anyone who clings to the historically untrue — and thoroughly immoral — doctrine that “violence never solves anything” I would advise to conjure up the ghosts of Napoleon Bonaparte and of the Duke of Wellington and let them debate it. The ghost of Hitler could referee, and the jury might well be the Dodo, the Great Auk, and the Passenger Pigeon. Violence, naked force, has settled more issues in history than has any other factor, and the contrary opinion is wishful thinking at its worst. Breeds that forget this basic truth have always paid for it with their lives and freedoms.” – Robert A. Heinlein, Starship Troopers



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.



Prepping for the Worst Case: Becoming a Refugee, by Dr. L.D.

I am unable to make my home self-sustaining.  So, unfortunately, my family will probably become refugees in a true SHTF scenario.  My focus presently is in becoming desirable refugees rather than shunned refugees.  The key is minimizing any negative impact (extra logistics of all sorts) and maximizing any positive impact (filling in weak spots) to someone that is geographically fortuitous.  I was challenged to figure out how a small family could best become a wanted commodity when food is tight and security isn’t. I determined the key for us was that everything carried needed to be dense in value. Density equals mass divided by volume. In our case, mass would be the battered value of the item; volume was limited by the size of our packs. We can’t carry enough bulk food, but we can carry items that will have an excellent post-SHTF (bartered) value, an example would be trading  batteries for an illuminated-reticle or starlight scope in exchange for food.  Keeping our packs small (but danged heavy) will give us an additional advantage if we need to make a small camp.

Skill sets are valuable.  I am fortunate to have become a physician.  Talk about (trading) food for thought! I am trained in Internal Medicine, so much of my skill set depends on a working infrastructure, that is, availability of medications, imaging (X-rays, CT, MRIs and the like) which will be useless once the grid goes down.  To make up for that, I have been certified in ATLS (Advanced Trauma Life Support) and ACLS (Advanced Cardiac Life Support), the former being far more useful in extended emergencies.  Further, I have also trained in mass casualty scenarios.  I have been stashing typically needed and well tolerated medications in a FIFO set-up in my home, from antibiotics to blood pressure pills.  In a legally gray area, I have some potent narcotics (barter/ransom/medical use). I also have a good stock of scalpels, retractors, Celox and the like to maximize my worth. The first lives my first aid kit may save might be my family’s. My skill set will be in demand, and I hope with the other positives below, worth enough to take in extra mouths to feed. But I recognize, perhaps better than non-medical people, that the quality of medical care will quickly revert to the level practiced before the advent of antibiotics and other modern pharmaceuticals. Think Civil War or WWI where a gut-shot was a death-sentence.  Garlic may have some ant- microbial properties, but it pales compared to a few doses of modern antibiotics.  Being a doctor in a SHTF scenario may be like being a sailor in the middle of a desert: lots of knowledge but only able to apply a small fraction of it.

My wife is an educator and now teaches special needs kids.  If the Collapse is a bad one, kids will still need to learn, and there is more to teaching than just putting material in front of kids, as anyone that homeschools will agree.

Those are our special skill sets. You can never have enough skill sets, and we plan to further develop our skills.

Our two children are too young to be useful for anything except giving us joy, . And dirty laundry.

We have been buying weapons in standard calibers – 45 ACP, 5.56, and 22LR.  I have given myself the luxury of owning a PS90. I rationalized the purchase by the fact that it supports a 50 round magazine of 5.7 rounds and bridges the gap between a pistol and a longer rifle. In reality, it looks really cool. Four mags on my hip (and one in the rifle) gives me 250 rounds. In an urban/suburban location, which will be the most difficult part of our journey, I do not see a need to shoot over 100 m. Most action will likely be under that, and that is the niche for the PS90. Additionally, it’s bullpup design keeps it short and maneuverable in a vehicle without sacrificing accuracy (it has a 16 inch barrel).  More importantly, we have packed way about 150 pounds worth of ammo in our G.O.O.D .bags and another 70 lbs in our BOB’s. We have so far two extra ARs and three Glocks for barter/trade. We don’t have a weapon for the 22LR, but either we will (Ruger’s 10/22) or it’s for barter. Our bags are meant to carry the lead at the sacrifice of food. It may be easier to barter rounds (heavy but small) for food (light but large).  If we do make to the hinterlands, having our ammo added to the favorably situated ‘castle’ will be a bonus.  My wife and I both shoot accurately to 200 m, and well enough at 300 – 400 m to keep the philistines away. We continue to practice our shooting skills by range time and class time. We will get far.

I’ve begun a ‘collection’ of survival knives and high quality folders by buying two at a time (again, two is one, and one is none).  They will be needed en route and, like ammo, possess an excellent weight to bartered value.  My guess is that knives will lost or broken and there will be a demand for them.  In the same category, are redundant Katadyn water filters kits.  Extras were purchased because they are small and will barter well. Bolt cutters were bought because they will be useful traveling and also in barter. Bic lighters, assorted tiny screws for spectacles with jeweler screwdrivers , rechargeable CR123 and AA batteries, extra Gerber multitools, quality compasses, 550 cord, several small but bright flashlights (Fenix brand – 1 or 2 CR123 batteries and they pump out over 180 lumen and fit on a keychain or a rifle), two Old Testaments, and 2 American flags fill the small spaces in the gear.  We keep thinking on how to improve our “stock” and get more bang for the buck with ‘value dense ‘ items. I thought of the extra eye-glass screws after having my own come apart just as I got to work and spent a miserable day squinting.  Someone missing their glasses won’t function at near capacity and the eye glass screw may be the equivalent of the nail that caused a horse to be lost, then a rider to be lost etc.

We also have our own gear and clothing, using the layer approach with an outer hardshell in camouflage.  We both have packed two pair of extra boots, either for the long haul or barter.

These items get thrown into the trunk along with our Camelbaks, and our mountain bikes (with extra tubes and tires) go on top supporting a few jerry cans of gasoline lashed between them.  If we can’t get to a refuge with available gas or the roads become impassable, then we load the bikes up and ride/walk until we are welcomed.

If we’re lucky, the Collapse will wait until we can move to a more geographically desirable location and all these purchases will remain useful while we focus on new needs (stored food, long term water and power and etc). If not,  I have improvised a plan that adapts to our situation and hopefully will change our refugee status to a valued team-member.

This is written in part because there has been no view from the prepared refugees.  There may be more preppers without a safe haven than those able to develop a safe haven, not because of any deficit or laziness on their part, but because of reality.  In addition, all preppers cannot move to a sparsely populated area in the US for if they did (imagine merely 10% of NYC, LA, and DC doing so during by the end Obama’s administration), those areas would no longer be sparsely populated! So think of what you can carry that can be bartered for things you can’t carry and that will make you into a valuable  team member.

I have worked hard to become a doctor (and perhaps even harder to remain a doctor is this crazed system) and to be able to give charity rather than receive it.  If I am to receive the charity of shelter from someone who is able to do so, I will be sure that we do more than just pull on own weight.  We will add security, in the short and long haul.

So if TEOTWAWKI happens, keep a lookout for strangers who may have much to offer. But for the grace of God, it might have been you unable to live in a geographically desirable area and looking to add to an established sanctuary.



Letter Re: Preparations for Eyesight and Hearing

Mr. Editor:
Just a quick note to follow-up regarding preparations for Eyesight and Hearing. I checked into lasik and contacts long ago (I am slightly near-sighted – too many hours staring into cameras and computers I guess). Although Lasik advances have come a long way, please be sure you talk to your eye surgeon at length before you commit to this serious expense. If you are near-sighted, a successful lasik procedure will improve your long-distance vision, but may impede your “up close” vision. I talked with my eye doctor at length about this, and after many questions he acknowledged that in many cases, near-sighted people would require reading glasses in as little as 3-5 years.

Also, remember that as a person gets older, the eye muscles simply weaken, which is why many people need reading glasses by their mid-40s. For those of you who were genetically lucky enough to not need glasses, oh how I envy you! (Forgive me Lord!) For those of us who do need glasses, contacts are a nice thing. Remember that eye solutions do have expiration dates and never sleep with your contacts in because it can lead to eye infections. Make sure your hands are “hospital surgery clean” (HSC) when you place the contacts in your eyes. A post-TEOTWAWKI eye infection is not something you want to deal with.

If there are any ophthalmologists reading, I’d be interested in hearing from you about eye-related injuries and treatments, etc. For example, I imagine there will be a lot of people chopping wood without wearing safety glasses who end up with one of nature’s toothpicks embedded in their eye.

As a side note, I recommend going to Costco and picking up extra pairs of reading glasses. Buy several different strengths, including some that “stronger” than what you currently need. They are cheap, but somewhat durable. Even if you don’t need them now, someone else may. – Jake G.



Economics and Investing:

Ex-Cop Loses Bank as Dutch Critic Spurs Withdrawals. (A tip of the hat to Karen H. for the link.)

Jonathan H. flagged this: DOW 10,000!!!! Oh Wait, Make That 7,537. Jonathan’s comment: Due to reduced buying power, the current DJIA at 10,000 is equivalent to only 75% of when the DJIA went through 10,000 a decade ago. Additionally,back then $10,000 would have bought 30 ounces of gold; now its only 10 ounces.

Items from The Economatrix:

California Bank Becomes 99th Closure

Financial Meltdown in the Decade of Greed

Food Giants Cut Back on Size But Price Remains the Same

Bankers Should Stay Worried: We’re Watching

Asian Stocks Gain a Second Week on Commodities, Economic Reports

Hedge Fund Chief Charged with Fraud

California Job Losses Continue to Climb

Corporate America Worried About Sinking Dollar

Bonuses Put Goldman Sachs in Public Relations Bind

Sorry, No Jobs. This is California
. State’s employers expected to keep cutting staff in 2010.



Odds ‘n Sods:

Reader CPK pointed us to a video clip of an amazing snow vehicle concept from the 1920s that ought to be revived.

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Courtesy of Cheryl: Record October Cold Has Folks Scrambling to Winterize.

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Reader Phil E. suggested a fascinating account of Jews hiding out in caves in the Ukraine, during WWII, to survive the Holocaust. Greater detail can be found in the book The Secret of Priest’s Grotto: A Holocaust Survival Story.

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H.H. sent us this news blurb from oh-so-politically-correct western Oregon: Apartment residents told to take down U.S. flags. Here are two quotes: “…the American flag symbolizes problems”, and “Residents we talked to who had been approached to take down their flags all told us the same thing: that management told them the flags could be offensive because they live in a diverse community.”



Jim’s Quote of the Day:

“For what glory [is it], if, when ye be buffeted for your faults, ye shall take it patiently? but if, when ye do well, and suffer [for it], ye take it patiently, this [is] acceptable with God.

For even hereunto were ye called: because Christ also suffered for us, leaving us an example, that ye should follow his steps.” – 1 Peter 2:20-21 (KJV)



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.



Square Foot Gardening, by N.C. Gardener

Everyone that has food storage should have a garden to supplement it.  For people that don’t have the acreage or live in cities a Square Foot Garden (SFG) is perfect. We need the nutrients and variety that can be provided with fresh fruits and vegetables.   Think how nice it would be to have a tomato sandwich with lettuce or make a small batch of fresh salsa.  Tomatoes, cilantro, salt and onions makes cornmeal go from cornbread to chips and salsa. The SFG web site has all the information you need to build and care for your garden.
I also recommend buying the books All New Square Foot Gardening as well as the original book Square Foot Gardening, for reference.

Why build a Square Foot Garden?  A small 4’x4’ garden will provide a person with enough produce to have a salad every day of the growing season.  It uses less water and space than a conventional garden is easy to protect and produces a high yield in a little space.  If made with a base the garden can be portable.

A square foot garden consists of a 4 foot by 4 foot box that has a grid on the top to divide the garden into 16 squares.  Each square holds a different crop.  The grid is the most important part of the garden.  It divides the box into “squares”  each square is a foot wide.  Hence the name Square Foot Garden.  Don’t think crop in the sense of a large farm and a crop of onions that is sown in two acres of land.  Our box produces mini crops.  For example in each square you can plant 1 tomato plant, 4 lettuce plants or 16 carrots.  The number of plants you put in each square depends on the recommended plant spacing.  And you have 16 squares to fill.

A Square Foot Garden is easy to protect, easy to build and easy to maintain.  First you build your box (from lumber, bricks, rock anything to hold the soil.  On the SFG web site I saw a  garden that was grown by a hero serving in Iraq, in a cardboard box.  It wasn’t as pretty or as durable as a nice vinyl box, but it did the job.  It produced food in the desert.

After the box is built, fill it with the perfect soil mix, called Mel’s mix, named after the inventor Mel Bartholomew.  The soil mix is equal parts of  coarse A-3 vermiculite, compost and peat moss.  I have found it is easiest to mix [in batches of] three cubic feet of each ingredient.  This gives you a little soil mix left over for other small containers or flower pots.  When you begin with the perfect soil mix there are no weeds.  If a weed does blow into your garden it is easy to identify and pull out. You may think buying prepackaged garden soil from the local hardware store is good enough, but the soil  that comes in the large bags doesn’t have as many nutrients and most are made with Pearlite.  I have found that after a heavy rain the pearlite floats to the top and runs out.  Vermiculite stays in place.  It gives the roots room and air to grow.  The peat moss holds moisture and the compost provides the nutrients or food for the plant.  No additional fertilizers are needed, no pesticides are used.  Bug control  and watering are done by hand.  I have found that in 10 minutes I can water 4 garden boxes, weed, and inspect every plant for pests.

Next, plant your seeds or plants.  Use heirloom seeds.  A lot of seeds and plants that are at the store are genetically modified or are hybrids from the true seed.  They are developed to only produce fruit once.  The seeds that are saved from the hybrid plants may not reproduce the following year.  As a rule, just get the heirloom seeds and if there is a chance that you are not able to buy seeds later; the seeds can be saved from the plants you already have.  After you harvest your plants and are ready to plant something else, dig up the old roots shake off the dirt and plant a new crop in its place.   At this time you need to replace the nutrients in the soil.  Simply add a trowel full of compost to that one square.  Fluff up the soil and replant with your next crop.

Because the boxes are small they are easy to protect and take care of.  Most plants need to be in full sun.  I live in the south and it is hot here.  For hotter climates I recommend having some shade for lettuce plants and some herbs like cilantro and basil.  Shade really helps them to thrive and cuts back on the need for water.  Lettuce is sweeter if it doesn’t get too hot.  If you find that your lettuce is bitter, put it in the fridge for a few days.  It helps.  The rest of the plants need a lot of sun.  Broccoli, tomatoes, cabbage, cauliflower, melons they all thrive in the sun.  I also recommend planting Marigolds and nasturtiums around the garden they keep out deer and some insects.  Plus they look pretty.

Chicken wire and or netting can protect your garden from birds and animals.  Again directions can be found on the web site.  To protect from frost, hail or snow, make a dome using two PVC pipes and cover the pipes with clear plastic.  The plastic dome can also serve as a greenhouse.  Having the plastic dome will extend the growing season into the fall and winter months.  

In an emergency or a TEOTWAWKI situation a garden may be moved short distances within your property.  If you have to bug out it will most likely be left behind.  But the lessons you learn from beginning a garden now are invaluable.  What good is a can of seeds if you don’t know what to do with them? I have put my garden in the garage to protect it from hurricane winds. It just needs a plywood base.  Don’t put a box that you plan to move directly on the ground.  If the box sits on the ground it will hold the moisture and the plywood base eventually will rot.  Placing five bricks underneath the box will do the trick.  One brick in each corner and one in the center for support.  The base also has predrilled drainage holes.  My favorite garden is screwed onto an old picnic table.  It is waist height and I don’t have to bend over to work in it.  It would be perfect as a wheelchair garden.

A few years ago here in North Carolina during the summer when gas prices skyrocketed, tomatoes (shipped here from Mexico, another story) were around $5 per pound.  This was when tomatoes were in season.  I was thankful to have a garden in my yard.  I walked out my back door and hand picked five tomatoes for dinner then shared some with my neighbors.  They tasted better right off the vine and I didn’t even have to go to the store to get them.



Three Letters Re: Perspectives on Roughing It and Covert Car Camping

Hi Jim,
That was a great letter from Jolly but I’d like to add a couple of things. Jolly says ‘never, ever’ sleep at an highway rest stop. I guess that depends on where you are. In the last few years Texas has built some absolutely beautiful rest stops with clean bathrooms, vending machines, etc. that are manned 24 hours a day. They encourage sleeping there (better that than fatigued drivers on the road). I asked the people at one if it would be okay to sleep in my car – they replied that yes, it would be perfectly okay and safe, as they patrolled the lot. I noticed that when they patrolled they were watchful but respected peoples’ privacy – they didn’t peer into car windows, for example – but would have noticed someone breaking into a car.

As far as Wal-Mart goes, I’ve never heard that you can’t or shouldn’t stay there if you’re in a car. I would think that if you parked over with the RVs, they would just assume you were a car accompanying an RV! You’d have the added security of other people around. And for that last reason, my favorite place to sleep in the car is in a truck stop, parked near the trucks. I feel pretty safe among a bunch of truckers – I doubt they’d hesitate to respond to trouble. Just make sure if you park with trucks that you don’t put yourself in their way. – Matt R.

James,
Back when I was young and shiftless I spent about a year living in my car on and off. I have a couple of observations about car camping in small towns and rural America. Places where I never had a problem were small town police station parking lots, a church parking lot, and at scenic overlook parking lots on the Blue Ridge Parkway. The Parkway was good during the summer when lower altitudes were too hot. Places I would advise against are store parking lots, rest areas (where you could have trouble with both police and predatory humans), and anyplace that has a security force. In my case I have always had trouble in college parking lots, for example.

In the event of troubled times however, I would expect a less tolerant attitude from small town law enforcement than I encountered. I don’t know what the right answer would be for this, but expect to be harassed and told to move on in many places (at the least). If you’re packing heat I would expect even more trouble. Finally, make sure you take Jolly’s advice about finding a place to discreetly take care of hygiene. You will have much less trouble if you look clean cut and respectable. Shave and keep your hair trimmed. The best place I’ve found for thorough showering and bathing on the cheap is a gym with a pay by the day feature. $5 could buy you some exercise and a shower with no one thinking anything of it. God Bless you all, – SGT B.

Mr. Rawles,
I enjoyed the article: “Perspectives on Roughing It and Covert Car Camping, by Jolly” and thought it mostly paralleled my own experience. I do take exception with his misunderstanding of the Boy Scouts of America (BSA)’s liquid fuels policies. Boy Scouts are not forbidden to use liquid fuels. The complete policy is here. Quoting from the BSA web page, the salient portion is:

1. Use compressed or liquid-gas stoves and/or lanterns only with knowledgeable adult supervision, and in Scouting facilities only where and when permitted.
2. Operate and maintain them regularly according to the manufacturer’s instructions included with the stove or lantern.
3. Store fuel in approved containers and in storage under adult supervision. Keep all chemical fuel containers away from hot stoves and campfires, and store them below 100 degrees Fahrenheit.
4. Let hot stoves and lanterns cool before changing cylinders of compressed gas or refilling from bottles of liquid gas.
5. Refill liquid-gas stoves and lanterns a safe distance from any flames, including other stoves, campfires and personal smoking substances. A commercial camp stove fuel should be used for safety and performance. Pour through a filter funnel. Recap both the device and the fuel container before igniting.
6. Never fuel a stove or lantern inside a cabin; always do this outdoors. Do not operate a stove or lantern in an unventilated structure. Provide at least two ventilation openings, one high and one low, to provide oxygen and exhaust for lethal gases. Never fuel, ignite, or operate a stove or lantern in a tent.
7. Place the stove on a level, secure surface before operating. On snow, place insulated support under the stove to prevent melting and tipping.
8. With soap solution, periodically check fittings for leakage on compressed-gas stoves and on pressurized liquid-gas stoves before lighting.
9. When lighting a stove keep fuel bottles and extra canisters well away. Do not hover over the stove when lighting it. Keep your head and body to one side. Open the stove valve quickly for two full turns and light carefully, with head, fingers and hands to the side of the burner. Then adjust down.
10. Do not leave a lighted stove or lantern unattended.
11. Do not overload the stovetop with extra-heavy pots or large frying pans. If pots larger than 2 quarts are necessary, ,then set up a freestanding grill to hold the pots and place the stove under the grill.
12. Bring empty fuel containers home for disposal. Do not place them in or near fires. Empty fuel containers will explode if heated.

But there is much more at the link.
I really appreciated his other comments and could relate his experiences with scouting to mine.
Respectfully. – Steve in California



Two Letters Re: Abandonment of the Dollar is a Premature Rumor

Dear Editor:
This civil debate on the status of the Dollar–and thanks, by the by, for keeping things civil on your blog–all comes down to a matter of not “if”, but just “when.” The United States Dollar will soon be dead meat. Finis. See this article: Reckoning Day for US Dollar Coming Next Year. We just need to ask: will the[definitive] end [for the dollar’s dominant reserve status] come in six months, or six years? So, no matter when, I’m hedging by building up my stash of silver and lead. (The kind that goes “bang.”) Since I’m still paying off college loans, my investing is very “modest”. As one of the impoverished masses, I followed your advice and I’m gradually building up a supply of nickels. I’m also culling through a few rolls of half dollars from my bank every week. (I live in a small town in Texas.) So far I’ve found 9 pre-1965 [90% silver half-dollars] and 46 post-’64/pre-’71 [40% silver] halves. It’s like finding buried treasure! It sure beats watching Wheel of Fortune on TV. The result of my effort is tangible. Thank you, thank you for mentioning [searching through half dollar rolls]. It is great way for people like me that are just getting started, after college. – Jason V.

Dear Jim and Family,
Those were interesting responses to my post that this dollar-dump rumor is just another rumor. I must point out, importantly, that everything the Saudis say is a lie, including “Hello”. They promised $200 per barrel oil in 2008. Lie. They promised repeatedly to decouple themselves from the US dollar unless we do their bidding. Lie. They swore they do not provide money to Osama and his Al Qaeda terrorist network. Subsequent research by reporters proved this to be a lie but the Saudis went to the UK, sued for libel, won in the UK, and had the ruling applied to the author of the book and articles in question here in the USA under some sort of twisted reciprocity ruling which makes sense only to judges and crazy people. Yet another reason that globalism is bad.

Yes, the Dollar is dying. However, it is not dying quickly, and while there’s a slim chance it could all go at once in a single day, history, particularly recent history, shows that to be unlikely. The Housing Bubble [collapse] happened over months. The Dot.Com [stock[collapse] took weeks. The Derivatives market crash is still happening and the housing bubble is still half inflated and won’t be resolved until 2012 or 2013, depending on government interference, bankster greed, and economic inertia. A dollar crash would cause too many nations would lose control of their violent populations — by this I mean populations counting on bribes, payoffs, and other forms of corruption bought with dollars to keep their peace. The ones who would gain the most by decoupling from the Dollar are also those who have the most to lose. If there was a viable world reserve currency which was everywhere the dollar was, from bars in Panama to the swamps of the Congo, the banks of Switzerland, the docks of Shanghai and the factory in Abilene, then I think we would have reason to worry. Without that existing everywhere, like the dollar, this is a silly rumor just like all the other silly rumors to erupt from the mouth of yet another lying Saudi.

It isn’t Optimism if you’re realistic and observant. They call this “Pragmatism”. Sincerely , – InyoKern



Economics and Investing:

Dollar hit on Fed’s signal of low rates. Meeting minutes show Fed has strong lean to more debt monetization. (Thanks to GG for the link.)

Brian H. sent us a link to a piece in Zero Hedge. that quotes Money magazine: “Now 5 institutions hold 97% of the notional value [face amount] and 88% of the market value in derivatives, and they are all basically in the same business and all basically hedge with each other. It is not a true hedge when the other side can’t pay, and history has clearly proven how easy it is for the other side not to be able to pay.” [JWR Adds: That is the very definition of derivatives counterparty risk.] Brian’s comment: “I would add that the risk isn’t just concentrated in these “Too Big To Fail” Five. The risks are clearly placed on the backs of the taxpayer, either through Federal Reserve inflation or direct confiscation of taxes passing through to the banks.”

Items from The Economatrix:

Why the Housing Rescue Hasn’t Prevented Record Foreclosures

BofA, GE Stocks Push Results Lower

Summers: Banks Must Accept Goernmnent Regulation

BofA Posts 3Q Loss on Defaults: $1 Billion

GE Profits Fall 45%, as Revenue Trails Estimates

US Consumer Confidence Worse than Forecast

Investors Get Jitters as Citigroup Fuels Fears Over US Economy

You Ain’t Seen Nothing Yet at Goldman

The People v. Wall Street

60 Million Mortgages May Have Fatal Flaws. This refers to the Mortgage Electronic Registration Systems (MERS)



Odds ‘n Sods:

Nona mentioned that the North Dakota State University Extension Service has plans for everything from bee hives and rabbit hutches to deep well water systems for your house, to vegetable cellars. You can download the 8-1/2″ x 11″ format plans as free PDF files, or order 18″ x 24″ blueprints for $4.

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The new AsaMom web site (“A Sisterhood of Mommy Patriots”) has been growing at a phenomenal rate, thanks in part to a prominent mention on the Glenn Beck program. Check it out.

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SurvivalBlog’s Editor at Large Michael Z. Williamson spotted some further evidence that the British Nanny State has run amok: Review of babysitting ban ordered. Ironically, the issue is nannying.

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JHB spotted this item with multi-generational TEOTWAWKI potential: Scientific Sundials. Note: These will be no use for you George Noory “Coast-to-Coast AM” fans who believe in “Earth thrown off its axis” pole shift theory. 😉