Letter Re: Accumulating $1 Coins as Protection from an Eventual Currency Exchange?

Hello Jim,
I have recently read your article on nickels. It was very interesting! I have been thinking about the $1.00 coins as a weapon against currency revaluation, here is my theory. If they revalue the U.S. dollar–say they take a 0 zero off. (You take a $10 dollar bill to the bank, and they’ll give you one hot off the press $1.00 bill.) If the Feds do not recall the coins, their face value is still $1.00. Am I missing the big picture? Need Help – Kevin in Las Vegas

JWR Replies: In terms of their compactness per dollar you are right, but in terms of their base metal content, the $1 coins are a poor choice. The base metal value of a $1 Sacagawea or Presidential “gold” dollar is only about 5 cents. As I described in my nickels article (which, BTW, was recently re-posted at the LewRockewell.com web site) stockpiling nickels will protect you from both mass inflation and from a possible 10-to-1 or 100-to-1 currency exchange. The base metal value of a US nickel (five cent piece) is presently about $0.04935–nearly its face value. So, say for example that we get into inflationary times, with 20% to 30% annual consumer price inflation. If the spot price of nickel were to then double or triple, a market would soon develop for people willing to pay more for rolls of nickels than their face value. But it would take tremendous inflation before a similar market would develop for “clad” (post-1964 silver-flashed copper token) dimes, quarters or the new “genuine gold tone” dollar coins.

For the details on the base and precious metal value of each type of US coin (including the long-discontinued silver issues), see www.Coinflation.com



Letter Re: Storage Underground or in Humid Climates

Hi;
[In response to the comment on varnish steel food cans,] I have some experience with long term storage and especially underground storage. Since there aren’t any books that I could ever find on this subject, trial and error is how you learn (or maybe you get lucky and the subject is covered on SurvivalBlog!).

Metal cans eventually will rust and especially if in an underground shelter or root cellar. Moisture is always in the air, no matter how well your structure is built. This may not be true if you have the means to have something professionally designed and built, for for everyone else, expect some moisture. Sometimes cans will have a tiny dent in them and the edges of that dent will be weak and rust through right there. So glean out any dented cans, and check them periodically, just because they weren’t dented when you bought them does not mean they aren’t dented now. If one can rusts through the liquids inside will leak out onto other cans and provide sticky moisture that will rust those next.

The best way we found to store cans is inside food grade buckets or barrels. As long as there is no moisture in that bigger container, you will be safe. But, if you put in a dented can and it springs a leak, then all that moisture will be trapped in your bucket and every can in there is doomed if not found fast. Watch those dents. Buckets are also nice because you can grab the handles and move a bunch of cans fast. If you need to, they can be buried and hidden. If buried the metal handles will rust/rot and be ruined, so after digging them up moving them will then be harder.
Plastic totes are worthless. They are too thin and do not have a waterproof seal. When stacked with anything heavy the ones on the bottom will collapse. We stored toilet paper in these and plastic trash cans and ended up with a lot of soggy and worthless toilet paper. No, duct taping the lids on won’t avoid this. Don’t use totes for anything.

Army surplus medical chests are a gem if you can find them. They split into two [clamshell] sections and will hold a lot of cans (or weapons, gear, etc). They have a big rubber seal to keep them air and water tight. These are great for #10 cans. They are made out of aluminum so they won’t rust, but the 4 handles are steel and will rust. If you tar those handles these can be buried for a nice cache. Or you can stack these in a shelter to protect your food or anything. Need to bug out fast? Moving these will be heavy if loaded with food, although not bad for gear, blankets, etc.. These can be moved and dumped into a forest fast. They are OD green so they blend in. There is a scenario in “Patriots” where this would be an obvious advantage. (I don’t want to post “spoilers” that would ruin the book for anyone that has not read it yet.)

You can sometimes find large plastic [or fiberglass] crates that are military surplus. These are also [usually] water and air tight, but harder to find. They can be found up to 4’x4’x4′ and come in all sizes and shapes. Check these for cracks and splits. Make sure that their rubber gaskets are not torn.

I’ve had people tell me that they store food in ammo cans. Ammo cans are great for some items, but I would avoid them for food. Some cans have a residue of gun powder [or other chemicals] inside them, and they may have been used by the military to store something else after the ammo was emptied out. A chemical in a can that touches your food or food container and ends up in you could make you sick or worse.

Metal 55 gallon barrels work well, too. Just make sure what used to be in them won’t poison you and have them completely cleaned. You want ones with removable lids. They are steel so they may rust after a long time.

Watch for mice and rats, they will wiggle into any shelter you can build. They will chew up all kinds of supplies and may chew through plastic containers. I’ve never had them chew through buckets or barrels, but they have chewed through plastic totes. Metal medical chests will stop them.

We had metal cans of lantern fuel stored and after about 10 years every can developed a tiny pin hole somewhere. The result was once that pin hole developed, the fuel evaporated out. So while the cans looked fine, some were 1/2 full. No odors from the fuel to warn us.

Batteries should never be left installed in the item you need them for. If they get too old they will leak acid and can destroy a critically needed item. I would store batteries in a way so that if one leaks it won’t contaminate all the others. You can try zip lock bags to separate a dozen or so.

If you are considering storing fuel to cook or for heat, consider coal. All oil-based fuels will eventually go bad. Wood rots after awhile (I’m talking long term here), so you can’t cut a 10 year supply and have it last. Chainsaws make noise that may attract people and require gas and oil. A chainsaw cut to can be deadly or at a minimum it will take some medical care. But coal is basically a rock. It doesn’t go bad, evaporate or require a noisy dangerous saw to produce it. [JWR Adds: But coal should be stored out of the rain to prevent deterioration.] You can buy wood/coal cook stoves and heat stoves from Lehman’s in Kidron, Ohio. (They also stock spare parts and know about what they sell so they can answer questions) You can buy as much coal as you can afford and stockpile it. If you want to hide it you could dig a trench, fill it in with coal and bury it. If it’s fine sized you might want to line that trench, but if the pieces are big you might not need to. Or you can fill big culvert pipes. Use your imagination.

If you are burying containers you will want to defeat metal detectors. It isn’t practical to dig to China with a backhoe to go real deep, someday you want to dig that back up, and then you might only have a rock to scrape the dirt. So your cache may be found unless you can fool the detector. Consider burying your cache in a junk area full of scrap metal. A few junk cars with old pipes, barrels, anything strewn about will help. Bury some metal around as well. Nothing obvious, just a few pieces of junk to discourage people from looking any deeper. Stacks of old pallets, lumber, all kinds of junk can make a good junk pile as a distraction. You could even stash some old tools [hidden above ground or buried just below the surface] to help dig up your cache!

Hopefully this will help someone and save them spoiled supplies. – Don in Ohio



Influenza Pandemic Update:

Argentina Confirms 337 Swine Flu Deaths

15-year-old Brazilian Girl Taking Tamiflu Dies on Flight from US

WHO Reports Swine Flu Now Resistant to Anti-Viral Drug Relenza

WHO: Swine Flu Spreads to Most Remote Parts of the World [JWR Adds: Madagascar?]

WHO: Younger People 12-17 at Greater Risk to Catch Swine Flu

New Influenza Drug Successful in Trials

Swine Flu’s Worst Case Scenario: Paranoia or Preparedness?

Eight US Cities Line Up for Swine Flu Vaccine Test



Economics and Investing:

Flagged by KAF: US government to loan Petrobras $10 billion. Note the comments in the article about increasing costs of exploration , and strong competition with China for new oil fields.

Also from KAF: Wish you weren’t here: The devastating effects of the new colonialists.

Cousin Al sent this: Soaring deficit may defy forecasts. (A quadrupling budget deficit? Yikes!)

This Jay Taylor “Turning Hard Times Into Good Times” pod cast was linked from the Total Investor news aggregation site: Will Silver Outperform Gold?

Items from The Economatrix:

China’s Wen: “The financial crisis is continuing to deepen and spread.”

Coming Soon: Second Wave of Depression: Hyperinflation Likely

Trader’s Brace for September Collapse

The Bill Is Coming Due (The Mogambo Guru)

The Gifts That Keep on Taking

Energy Prices Slump After Labor Report

Oil Prices Cloud Recovery Hope

Testing Week For US Bond Investors

Fed Buys $6.6 Billion in Treasurys [Monetization leads inevitably to inflation!]

CIT Shares Fall on Bankruptcy Warnings



Odds ‘n Sods:

Witt sent this piece by Victor Riesco: Cash for Clunkers, a Highway to H*ll. Witt’s comment: “It’s sad to see the American people being bribed by their own government, and with their own money no less, and spending their savings and burdening themselves with yet more unproductive debt.”

   o o o

Jerry E. sent this: Peak Oil Latest–Yikes!

   o o o

From FG: Teen called 911 from shower during home invasion. Note the mention that teh goblins had an AK and body armor. The threat spirals are spinning up, folks!



Jim’s Quote of the Day:

“It’s amazing that people can’t see the theft [of their buying power through currency inflation], and even that so many will argue in favor of deflation, meaning that “the dollar is getting stronger” when that has never taken place over the long run in the last 95 years.” – Jason Hommel



Note from JWR:

Today we present another entry for Round 24 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 $345 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 24 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.



Preparedness Beginnings, by “Two Dogs”

I am a retired Marine Corps officer and Naval Aviator (jets and helicopters), commercial airplane and helicopter pilot, and most recently, an aircraft operations manager for a Federal agency.

I graduated from numerous military schools, including the U.S. Army Airborne (“jump”) School, U.S. Navy Divers School, Army helicopter, and Navy advanced jet schools. In addition, I have attended military “survival” courses whose primary focus was generally short-term survival off the land, escape from capture, and recovery from remote areas.  Like most Marine officers, I attended The Basic School, an 8-month school (only five during the Vietnam era – my case), which is still designed to produce a second lieutenant who is trained and motivated to lead a 35-40 man platoon of Marines in combat.  This course covers everything from field sanitation to squad and platoon tactics, artillery and other ordnance delivery, communications, reconnaissance, intelligence, firearms training, and much more.   Later, I attended the Marine Amphibious Warfare School and the Command and Staff College, both follow-on schools and centered upon the academic study of tactics and strategy as they applied to the missions of the Marine Corps.  I flew helicopters offshore in the Gulf of Mexico and across the U.S. I found out first hand how thoroughly corrupted is the federal bureaucracy and the government, in general.  Not a pleasant experience. I’d rather have been flying. I have bachelor’s and master’s degrees.

As a result, my wife of forty years and I seem to have been moving endlessly from place-to-place.  Nevertheless, I have tried in each place to do what I could to maintain a level of self-sufficiency for my family that varied greatly with locations and personal finances. My intention here is to try to share some of the less-than-perfect ways that I have tried to accomplish that end. 

Only in the last few years, primarily as a result of the political and fiscal situation in the U.S., have I begun reading some of the huge amounts of literature about how one can prepare for serious long-term off-the-grid survival.  I have found that the preparation required to be ready for that contingency seems to be endless.  I do not want to talk about all of those preparations.  Others have done so very well, and besides, I’m not there, yet.  What I would like to do is to talk to those, perhaps like me, who are not true survivalists in the commonly referred-to sense, but who are genuinely concerned about the future of this country, and might desire, like me, to begin to prepare. Perhaps my elementary and simplistic efforts might be of help to someone else who is beginning to think about the subject of preparedness.  There are many scenarios that might require this, but the two that I am thinking most about are economic collapse and electromagnetic pulse (EMP) attack. I’m building small Faraday boxes, but not doing much else for EMP.

My thinking on begins with my own estimation of the basic problems:  shelter, water, food, fuel, and security.  I view these as the most critical needs, whether living in a tent or other outdoor shelter or here in our rural home in West Virginia. Here I have and often take for granted what I have — shelter, well water, a small stream, a pond, a rain barrel; canned, dried, frozen, and freeze-dried foods; fuel for the generator and portable stoves, kerosene heater and lanterns; factory-made and reloaded ammunition for any one of several firearms.  Edible plant books. Gardening books. Encyclopedia of Country Living-type books. Reloading books. Hunting books. Tracking books. A few novels devoted to the “what ifs” of the future, including Jim Rawles’ excellent “Patriots: A Novel of Survival in the Coming Collapse”, for example.  Books to fill an entire bookcase.  The Boy Scout Field Book sits right there next to the military survival manuals, as do Tom Brown’s Field Guides, the The Foxfire Book series, a canning book, field medical books, and quite a few others.

Those are the basic things about which I think. I have been thinking about them for quite a while, in fact, longer than I even realized.  Perhaps I’ve been thinking about them ever since I was a young lad.   For example, my very first “survival book” was the Boy Scout Field Book, the original of which I still have (circa late-1950s edition). It is still a great reference if one is looking for an all-in-one manual for starting fires, making simple shelters, recognizing game tracks, tying knots, and much more.  I note that it is still available on Amazon.com. (It’s probably been scrubbed to favor the politically correct, but don’t know [JWR Adds: Yes, I can confirm that unfortunately it has been made politically correct–with the traditional woodcraft skills showing any injury to innocent and defenseless trees duly expunged. So I advise searching for pre-1970 editions!] ) One does not necessarily need the SAS Survival Handbook or the U.S. Army survival manual. I have them and have read them. They do cover security problems, but then don’t cover other topics.  Alas, there appear to be no “perfect” manuals, and the Boy Scout Field Book is no exception.  But it’s not a bad beginning. And so I was beginning the journey even before I knew that I was. 

I think that my first education in “survival” came at about fourteen. That’s when I first shot a .30-06, an old [Model 19]03 Springfield. It pretty much rattled my cage.  Mostly, my older brother and I used to track and shoot small animals in the deep woods of Missouri as youngsters.  We were “issued” ten rounds of .22 LR ammo by our father, a retired USAF pilot, to be used in a bolt action, single shot, .22 rifle with open sights.  One would be surprised what that meager handful of loose ammunition could do for one’s choice of shots, one’s ability to be patient in waiting for the shot, and for one’s great satisfaction at having brought home six or eight squirrels for the cooking pot, having used just those ten rounds – and sometimes, but not often, less.  My point is that the knowledge of firearms is, in my view, basic to the notion of preparedness and in surviving in the wild. And it need not be exotic or overly complicated in nature.  One can surely attend modern schools that will teach one to double-tap a cardboard target or silhouette at seven yards with a semi-auto pistol, as well as basic and advanced tactical rifle courses, but very basic survival skill with a rifle can be had without much cost if one is committed to learning the skill and if one disciplines oneself. Start with only one round, and work up from there.  As Col. Jeff Cooper used to say, “Only hits count.”  In a purely off-the-grid survival scenario, I can envision that .22 LR rounds would be very precious, indeed.

Consequently, and even though I own handguns and rifles that will shoot .45 ACP, .44 Magnum/.44 Special, .357 Magnum/.38 Special, .380 ACP, .223, .25-06, .270, 7mm-08, .308, .7.62×39, .30-30, .30-06, and .45-70/.457 WWG Magnum (a wildcat), I shoot a .22 rifle and pistol more than all of the others, combined, and normally at least twice a week. And I’m hoarding them, as well as shooting them.  I have the capability to reload all the calibers (except .22 LR/Magnum, of course) above, as well as shotgun ammo in 12 and 20 gauge. I wasn’t really thinking of “survival” when deciding to do this about twenty years ago, but was interested only in having the capability to shoot more, and to do it more cheaply. Yet it appears that much of that ammo could be used for barter. I had never even considered this until reading some of the recent “survival novels.”

My apologies.  I’ve wandered into the weeds here, as I could do forever on my favorite subject.  Suffice it to say that whatever firearm one chooses – and make no mistake, one is necessary in my opinion — there are all kinds of reasons to choose one over the other, depending on the situation and the person. One must endeavor to shoot it well. Owning a firearm is of almost no consequence, at all, unless it is properly employed.  Personally, I prefer a M1911 .45 ACP pistol and a 7.62 M1A SOCOM, while my wife is comfortable with the milder .38 [S&W] revolver and 20 gauge. pump shotgun.  I won’t even begin to get into the debate over .223 vs .308 and 9mm vs. .45 ACP.  Suffice it to say that in Vietnam I had the opportunity to see the effects of all of these, and I chose for my own security the .308 and .45 ACP.

Having got my favorite subject out of the way, I’ll talk about one that is likely even more important.  Water.  It is amazing how complicated this can be, and how many choices one has to solve this problem.  I have not yet solved it.  I have put up a rain barrel, and plan to get a couple more.  It’s amazing how rapidly a 55 gallon barrel will fill in even a moderate thunderstorm.  I got mine from Aaron’s Rain Barrels. http://www.ne-design.net/. I’ve camo-painted the first one to make it recede into the bushes that surround it.  

We have a very shallow stream down the hill that I need to dam so that it keeps only about a foot-or-two deep pool for gathering some water. It flows into a large pond, of which we own half (The owner of neighboring property owns the other half.).  But that’s over a hundred-yard trek downhill with empty buckets, and the same distance uphill with full ones.  Now, while that is okay for a backup, in my thinking, because I’m going on 63 years, I prefer to have something closer.  So my next “big” purchase will be a Simple Pump that allows one to drop a pump and pipe though one’s existing well casing down to below water level and extract water by means of a hand pump or DC motor attached to a battery which, in turn, will connect to a solar panel.  This is much, much cheaper than a Solar Jack.  At $1,200 for the hand pump capability (I’ll add on the DC and solar later), it’s a bargain, for me. See: http://www.survivalunlimited.com/deepwellpump.htm.  
I’m not recommending it for anyone, yet, as I haven’t got one. It has plenty of good reviews, and I’m willing to try it.  My apologies, but I am just talking about how I, for one, intend to solve my “water problem.” 

I’ve also started collecting clear plastic soda bottles for use in Solar Disinfection (SODIS), see; http://en.wikipedia.org/wiki/Solar_water_disinfection.  I’ve set up a rack for putting out the bottles in a sunny place.  Again, that’s a backup, but I’ll use it.

I have bought three different water filtering devices, the best of which is the Swiss-made, all-stainless Katadyn Pocket Microfilter.  It works wonders in that shallow stream and pond down the hill.. [JWR Adds: The same Katadyn filter model is available from several SurvivalBlog advertisers. They deserve your patronage first, folks!]

With the exception of the Simple Pump, these solutions are relatively cheap and effective, if not producers of great volume.  So far, they are what I’ve come up with.

I won’t go much into the food problem. It isn’t quite as complicated as the water problem.  I’ve either got to have it [stored], grow it, or kill it.  I’ve started storing all kinds of Mountain House freeze dried #10 cans (with expiration date dates in 2034), two-serving meals from Mountain House (expiration dates circa 2016), and numerous grocery store-type canned foods (expiration a couple years), in addition to dried beans, rice, Bisquick (sealed in plastic bags with desiccant inside), salt, sugar (Domino, which are sold in one-pound plastic tubs), olives, peanuts, wheat, etc.  Basically hit-or-miss, so far.  I need to get this “food problem” organized and do it right.  But it’s a start.  I think we’ve got only about a 60-day supply now, for two.

I’ve got two Coleman two-burner stoves.  One is a butane stove, and the other a dual fuel (white gas or unleaded gas), as well as several small backpacking stoves, the best of which is a MSR Whisperlite International, which uses virtually all fuel (unleaded, white gas, kerosene, diesel, and maybe even corn oil).   I was heavily into backpacking when we were stationed in Hawaii in the late 1970s, and still have all the gear.  After having one knee replacement and hedging doing another, I’ll not be backpacking if I can help it.  Nevertheless, I have two bug-out bags with essentials in them, ready to hit the trail if need be.  I’ve saved up and bought two good Wiggy’s bags and a couple of his poncho liners.

Concerning backpacking stuff, I can recommend a book that I read back then called The Complete Walker, by Colin Fletcher. I haven’t read it in at least a decade, but its import is such that I remember much of it.  He emphasizes simplicity in gear.  That is to say, don’t pack a tent if you can get by with a tent fly – which you cannot in cold weather. I’ve still got my old three-season tent, but am saving up for a four-season. And he emphasizes: don’t worry about pounds – worry about ounces.  That is to say, if one is packing tea bags, remove the labels from the bags.  Ounces.  Remove all packaging material unless it is absolutely necessary (usually never). Don’t carry a “mess kit,” nor a knife, fork and spoon set.  A spoon will do (I’ve done it) along with a pocket knife. Now I have so many knives of so many types that I can’t remember them.  Personally, I’d go for a multi-tool.  But it’s heavy.  I never used to carry a weapon while backpacking.  Of course, it was (and is) illegal in Hawaii, but I think one would be remiss in not doing so today.  There was so much good advice in that book that helped me in the USMC, if nothing more than when packing my helicopter before a mission, or a car, trailer, or truck to move across the country.  “Think ounces, not pounds.”  I always think about Mr. Fletcher’s advice when I pack.

Anyway, I think I’ve got the camping stove angle covered in spades.  That is, until the fuel runs out.  Same goes for kerosene heater and lanterns (5).  My plan is to pull out our pellet stove and replace it with a free-standing wood stove.  Pellets are nice, but they must be bought, and the price is getting exorbitant, according to my pocket book.  They likely will be non-existent in a crunch. 

I connected a 12,000 Watt/50amp gasoline generator when we moved into this house nine years ago, as I have with every house in which we’ve lived for the last two decades.  I’ve got it wired through a transfer box to the circuit-breaker panel, a job that I did myself. It works, and it’s safe.  The main reasons for having this were to run the 220V[olt AC] well water pump and to run the refrigerator and our free-standing freezer during power outages.  But I’ve got it wired, anyway, to nearly every circuit in the house, except the other 220V appliances – water heater and heat pump.  It is somewhat selectable. That is to say that I can choose which circuits I want to power by engaging or disengaging the switches on the transfer box.  The problem is that it uses gasoline. So in a long-term outage it would soon become useless.  I’ve had the propane gas company come out to estimate what it would cost to get a dedicated 100 gal propane tank for the generator.  It would be about $500, but then, in addition to the 50+ gallons of gasoline, butane tanks, and white gas that I keep stored in a separate outbuilding, it would make a great explosion when hit with a tracer round.

Which brings me to the subject of security.  We live in a split-level home on about ten acres of forest.  The property is surrounded by other similar-sized properties of seemingly like-minded individuals.  I gleamed this because everyone out here shoots.  The sweet sound of gunfire can be heard at times in a full circle.  West Virginia, at least, has still got its priorities straight in this regard.  But I digress. This is a frame house with half of it below ground in front, but framed in back, which faces the forest.  The forest, itself, is a maze of downed pine trees blown over by the wind, interspersed with small saplings, vines and low brush.  Not a likely avenue of approach for anyone but the most determined.  For those who are determined, the downed trees would make excellent cover and concealment.  So I have a security problem to solve there, as well as at the front. 

I’ve started buying rolls of barbed wire and baling wire.  Unfortunately, I do not have access to dynamite, which we used to be able to buy in a hardware store in the 1960s.  We used it back then to blow stumps while clearing the land for our house.  I am thinking of buying a bunch of used railroad ties to build cover in the back; I’ve thought also of bricks and sandbags.  Problem is we’re reaching the point in all of this where the house would begin to look like a fortress, of sorts, to all but the most ignorant observers.  So there’s a line here concerning security versus “normalcy” that I must cross sooner or later.  Inasmuch as my wife is a few years older than I and is on constant medications, I’m afraid that finding a retreat (if we could even afford one) would be out of the question, as access to doctors, hospital and pharmacy are a necessity. Nevertheless I’ve got the bags packed and gear ready to throw into the pickup (Toyota 4×4 – like to have one of those older model American trucks, but I think they are getting rare, at least around here.  And what there are will likely go to the Cash for Clunkers Program….grumble, grumble. What will they think of next?).

So it looks to me as if we are here for the duration of the crisis, or sooner, if they try to take the guns from my cold, dead hands.  Speaking of, I still have to build a cache or two for guns and ammo and a few other necessities. 

And since I’ve more-or-less made that decision (here for the duration), I’ve thought of organizing the apparently gun-loving neighbors.  I’ve begun to buy walkie-talkies, if not field phones and commo wire.  I’ve got solar panels and several batteries (need to get a mega deep cell or two, however) to run the small battery chargers and the CB radio. My shortwave is up and running.

I will have to wait to talk to the neighbors, whom I rarely see, much less know.  I can just imagine the words that would come out of their mouths if I were to mention to them the notion of forming a security “company” and establishing a perimeter.  “That old retired Marine down the road is nuts!”

So that’s what I’ve got to say.  I do hope it at least stimulates some thought for those who are starting out trying to prepare, as I am.  All of this shows me that one “problem” in this “survival” business leads to several more, and they in turn lead to even more problems.  Lots to do. So I’m glad I’m retired.  I’ve got time to think about it.  If I were rich, I could do a lot more and likely in a far away place, but as it is, we do with what we have.   I have to use the lessons taught to every Marine:  Improvise, Adapt, Overcome.  

Long Live America.  Keep the Faith. – “Two Dogs”, Col. USMCR (ret.) in West Virginia



Three Letters Re: Acquiring Pre-1965 Silver Coinage

Jim:
One of the easiest ways to quickly go through a roll of quarters, dimes, or halves, is to look at the coins edge on. If any do not have the copper color on the edge then it is probably silver. When you look at a clad coin, you’ll notice a bit of copper on the edge. Then take a look at a silver coin and you’ll see that it doesn’t have the copper color on the edge. This is how I quickly go through rolls of coins.
Enjoy, – KJ

JWR Replies: Thanks for reminding SurvivalBlog readers–especially those of the younger generation–who might not be familiar with that indicator. OBTW, many readers might also not be familiar with the 40% silver half dollars that were minted between 1965 and 1970. These coins are often still found in circulation. It is worth the time to ask for rolls of 50 cent pieces at banks, particularly in small towns. You can also occasionally find “War Nickels” minted between 1942 and 1945–back when there was strategic shortage of nickel. So the US Mint substituted 35% silver!

Dear JWR,
Thank you for publishing the letter of 11 August 2009 regarding pre-1965 silver coinage at retail establishments and your following comments. Our family was the victim of a residential burglary one year ago, at which tie we lost several firearms of practical utility and $2,000 face value of pre-1965 silver coins. (We were visiting family out West, and our own tools were used to cut open a hidden, hardened room. It was divine providence that our house was not destroyed by fire due to the efforts of the thieves.)

We live on the periphery of a small town in central Pennsylvania and until this time, receiving “junk-silver” as change has been al but nonexistent. Since the burglary, I have not only found silver quarters along the road during my morning runs, I have received several silver dimes as change from local merchants. It has been a standing joke that we are receiving our sliver as change. Perhaps there is more truth and less humor to this assertion.

We continue to pray for you, your wife and family. – Michael X.

Mr. Rawles,
JK’s article on acquiring pre-1965 silver coins. Isn’t taking a silver dollar or 50 cent piece from someone uneducated in it’s value the same as stealing? That, and when I read about someone picking up a firearm for a song because their owner doesn’t know the value, Boston T. Party’s comments [in Boston’s Gun Bible] comes to mind. Same thing as cheating someone out of money.
Sincerely, – MK

JWR Replies: The real “cheating” and the original crime happened back in 1964, when the government unconscionably replaced our sound silver currency with debased copper tokens that are just flashed with silver, to make them look somewhat real. Having two types of currency in circulation–one genuine, and one debased–doesn’t last long. (See: Gresham’s Law.) I estimate that 98% of the silver coinage was promptly and righteously pulled from circulation by the outraged public before the end of 1968. (The debasement prompted the coinage shortage that lasted for three years. during which the various US mints produced a mix of the new “clad” coins and some 90% silver coins.) OBTW, a similar coin shortage just occurred in Argentina, when the citizenry realized that coins would retain some value, while the paper currency would not.

When some of the genuine silver coins are found in bank rolls these days, it is cause for celebration. See, for example, the forum run by coin collectors that obtain rolls of coins from banks to painstakingly sort: Treasurenet’s Coin Roll Hunting Forum. These folks call themselves Coin Roll Hunters (CRHs). It is a fun hobby for someone with time on their hands, and good eyes.

If an adult of normal intelligence hands you pre-’65 silver coins for a transaction at face value, then the odds are quite high that they stole them from someone. If a child (or an idiot, or a recent immigrant) does so, then it might be out of ignorance. They deserve a lecture, and need to be sent home to apologize for raiding their family’s silver coin hoard without permission. So at the retail level–outside of banking, which is a special case since coins have passed through several hands before being sold to you in rolls–then you are correct. A sale’s clerk’s role should be that of educator, not a coin gleaner. The individual offering the coin(s) needs to be shown the error of their ways. (Either of their ignorance or more likely their penchant for larceny.) And, for good measure, the lecture should include a bit of history about The Great Clad Coin Scam of 1964. Oh, and by the way, we would not be faced with the ethical dilemma of taking pre-1965 silver coins from anyone at face value and substituting debased coins if it were not for the grand larceny committed by our elected representatives 45 years ago.

In retrospect, we should have had a revolt in this nation in 1964-1965, against the evildoers in Washington, DC who effectively robbed us, so thoroughly. They should have been tarred and feathered.

When inflation re-emerges in the next few years (as the FedGov monetizes its way out their current predicament), I expect commodities prices to start to gallop (in Dollar terms.) This will make some US coins–most notably nickels and pre-1982 pennies–worth far more than their face value. Once they get past four times their face value, the Generally Dumb Public (GDP) will catch on, and they will disappear from circulation. My advice to SurvivalBlog readers: Panic now, and beat the rush. See my static page: “Mass Inflation Ahead–Save Your Nickels!“, for details.





Economics and Investing:

Reader DD sent this piece about prospects for hyperinflation: A Pessimist or a Realist?

Also from DD: Why Ronald is Smiling

From A.W.: Billions in Bad Loans Still Threaten U.S. Banks

Items from The Economatrix:

BoE Pumps Another 50 Billion Pounds into Economy

BMW’s Profits Drop 76%

Clunkers Could Spark Auto Sales Crash Later On

Chrysler Schedules Factory Overtime on Clunkers Demand

Geithner Asks Congress to Boost Federal Debt Limit

Consumer, Celebrity Bankruptcies Skyrocket

Russian Economy Hitting “Dead End”

US Banks Still in Tight Straits Despite Profits

Japan Airlines Posts Net Loss of $1 Billion, Plans Cuts

The Future Made Simple (The Mogambo Guru)



Odds ‘n Sods:

Jim H. sent us this: Three-in-one oven could ease energy needs in developing world

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This thread over at the often-wacky Above Top Secret forum is a must read: An event at my grocery store. This describes the chaos caused by a minor power and data glitch that caused credit card and WIC payment terminals to go down. And then the store’s ATM (“cash machine”) went down… Keep in mind that this was just a brief interruption at one grocery store. Extrapolate from this small event for a more serious, widespread situation, where the power grids go down. “Katie, bar the door!”

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KAF forwarded this New York Times op-ed piece on the tomato blight: You Say Tomato, I Say Agricultural Disaster

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Doctors Say Hospital Surge Capacity has Worsened



Jim’s Quote of the Day:

“When you’re safe at home you wish you were having an adventure;
when you’re having an adventure you wish you were safe at home.”
– Thornton Wilder



Note from JWR:

Don’t miss out on Safecastle’s current “Before the Fall” sale. At the core of the sale is a Mountain House three-case kit (18 of the big #10 size cans) that is a quick way to add a variety of high-quality freeze-dried foods to a food storage program. These cans have a shelf life of 30+ years. With a qualifying purchase of at least one of these kits, Safecastle offers four add-on packages at 33% off. As always, everything ships free to the lower 48 States. This offer is good for both Safecastle Royal buyer’s club members and non-members.



Letter Re: Surviving 90 Miles from the US — A Cuban-American Exile’s View

A brief background of myself. I am an Telecommunications Engineer, I served three years in the Cuban army as an Engineer in several units (it was mandatory unless you were integrated with the system, in which case you will get a better civilian job). After I served my time they did not want to release me (basically no one wants to stay unless you are willing to do their bidding) so they offered 2 years to a very harsh unit that stays in the mountains for months end ready to be sent anywhere, or stay for 20 years in very comfortable position as an Engineer, I sucked up the two years (30 months
actually) and then left and never again worked for the government, but I was walking a very fine line. I left the country illegally. They would never let me go, everybody needs permission to leave the country. This was more than 15 years ago and this is the first time that I have talked about it freely with someone outside my very close circle of family and friends. Please do not mention my surname.

The government controls everything, I mean everything, from health, to communications, from commerce to defense. When government controls everything there is absolutely nothing you can do. They determine what is legal and sometimes they let you get away with it, as long as you do not mess with the regime. They can take you to jail for anything because as I said everything is illegal. You cannot legally sell a house, only cars that were in the country before 1959 can be sold legally, [Owning a] DirecTV [satellite television receiver] is illegal. The list goes on and on.

In order to survive you must depend on the government or go black market. There is something called the Comite de Defensa de la Revolucion (CDR), basically is an organization at community block level that monitors everything that happens and reports to the government, it is completely volunteer, but it tells you how low citizens will go.

Electrical Power is obviously controlled by the government, and they impose restrictions so you will have times that power will come on for only a few hours a day, people have converters because generators are hard to get and even harder to get gas for them (it is expensive, a gallon goes for about 8 dollars a gallon last time I heard), to use the converter you hide in a room to watch some TV, have a fan for the heat and that’s it. You must try to hide, as much as you can, the things that you have, because you might get robbed. Being robbed at home is nothing new, you try to be as modest
as you can–otherwise you will become a target, by thieves or the government if you are getting too out of control.

Water is also government controlled, it does the same as with the electrical power, you can go days without water, so every house has water tanks to store water, even in buildings people will have water tanks in the bathroom. Drinking water always needs to be boiled.

People will raise pigs in a bathtub in the bathroom or if you are lucky to have a small backyard and someone to watch over it because it will be stolen. Pig will give meat and the fat you need to cook.

People that live in the countryside can raise animals and food, they can sell it under government supervision, they cannot become wealthy because government will intervene and accuse them of “exploiting” others.

It is illegal to kill a cow or a horse, as the government has a strict control. [If you slaughter one without prior approval and are caught,] you will serve the same time as if you killed a human being. People will slaughter a cow and dispose of it in two hours and “disappear” the remains by burning it with car tires because it burns very hot. And then you have to be careful how to transport [the meat] because they will have checkpoints. They can stop you anywhere, anytime for any reason and ask to search your vehicle.

You have to be extremely careful on who you trust, because they could be a government informer. (Did you see how our government is asking [their allies] to report when they see something “fishy” about [opposition to socialized] healthcare? That scares the h*** out of me.)

Not everyone can move to the countryside because the government controls that, they control movement within the country, you just can’t pick up your stuff and decide to move, so you have to make a living where you are. In the countryside you’ll have more food but they will cut electrical power more often. I used to install alarms (on my own, I refused to work for the government) for farmers that had pigs, pigs are raised in jail-like cages to avoid thievery, so I would install an alarm with battery backup because they had so much power shortages.

It goes without saying that [privately-owned] guns are illegal.

I just wanted to give an idea about how people live under a [total] government-controlled country. They will slowly take away your liberties and you will find out one day that you have nothing. And your fellow citizens will go as low as they can to survive. Government would threaten their family and force you to do what they say. This is always under the [mantle of] “we are doing it for the benefit of the majority, and only because we are in a crisis”, but there is always a crisis.

They will say that you do not want to work for the improvement of the country, that you are against your people, they will make things up, and suddenly you will become a pariah. Does it sound familiar “… these mobs against health care are destroying the democratic process…” Next it will be “they are organized by the enemies of democracy” and suddenly “we need to eliminate this threats to our democracy”.

Never think it cannot happen [here in the United States]. Sincerely, – Ignacio