Precious Metals in Context: Prudence, Moderation and Balance, by Gentleman Jim from Colorado

As I read the occasional letters and articles on SurvivalBlog about storing/using precious metals (PMs) during a TEOTWAWKI of whatever sort, I must conclude that every single writer is absolutely correct–and yet also mostly wrong. You might ask: How can everyone be right and wrong, simultaneously? It’s because most preppers seem to anticipate and plan fairly narrowly for the use of PMs. IMHO, if you’re taking such a narrow lane down the preparation highway, you’re not thinking big enough.

Any situation following a currency collapse will be complicated by varying degrees of social disorder, economic breakdown, extreme paranoia among the population, (hopefully) temporary increases of theft and violence, etc., and thus will follow certain micro-unpredictable, yet macro-predictable, patterns. Saying it in a less scientific way, it is nearly certain that “big-picture,” long-term trends for currencies in crisis, and especially the consequences of certain governmental actions, are extremely predictable. There have been more than 500 currency collapses in modern history (most recently in Zimbabwe, that I’m aware of, and seemingly ongoing for the US Dollar). Thus, economists and financial gurus can predict with fairly good accuracy what patterns will emerge during any currency crisis–whether it something as simple as hyper-inflation, devaluation or the wholesale destruction of a nation (and thus its currency). That makes such events macro (big-picture)-predictable.

Still, every civilization, society, currency and situation has unique characteristics and millions of variables, so certain events common to currency failures and thus almost certain to happen (macro-predictable) will still be hard to predict on a micro (small-scale) basis or timeline. In other words, economists can predict an abandonment of fiat currencies, they just can’t predict the day, nor usually even the year. They can anticipate reliably that wheelbarrows will at some point be used to carry paper money to the grocery stores, but they just can’t predict which person, on which day, at which store, in which city, will start the trend. Nor exactly when/how that trend will end, as the currency becomes so worthless that even a wheelbarrow-full isn’t worth the effort of taking to a store.

Similarly, centuries-tested stores of value like gold and silver are almost certain to hold their relative value through almost anything crisis. Will gold and silver prices go up and down? Will governments make them difficult, illegal or even dangerous to one’s health to hold them? Sure; but look at this way: if gold and silver were good enough for the Phoenicians to trade in; for many Jews to use to escape Hitler; for Marco Polo to use in his travels; for ancient, medieval and modern rulers to bribe the guards and spies of opposing rulers; for royal families to use to pay the ransoms of hostage family members; for Alexander the Great to exact in tribute from besieged cities; and for defeated Nazis to spirit away to safe havens after WWII. So it is a good bet that they’ll be just as useful in any future scenario you can imagine. I could be wrong, but you shouldn’t bet against that over the long haul.

Yes, a number of negative trends (take your pick: currency failure, government failure, world trade imbalances, food shortages, major droughts, out-of-control crime, oil shortages, nuclear terrorism, pandemic diseases, revolutions, major wars, civil wars, etc., etc.) could in theory climax simultaneously, causing gold or silver to be un-tradable for short, perhaps even moderately-extended, periods. (Note: I did not say “value-less.” Just un-tradable. Folks will hunker down and drive off potential threats, and food, water and ammo will be the needs in the now. Over any period of more than a few months, though, society will demand a currency to enhance and ease barter, trade and commerce.

Yes, there may be short transition periods when precious metals will be temporarily under or even un-valued by some people, in some regions. But survivors must be pragmatic and flexible when they’re hungry or in danger. Since nearly all Americans have at least some gold or silver jewelry, it seems likely the mental transition to gold or silver-based barter or currency wouldn’t be difficult for most. Look at this way: When we travel overseas, the local currency (be it the Euro, the dollar, the Real, the Yen, the Renminbi, the Hutsi-Tutsi or whatever) always confuses us for a few days, until we get a feel for what it buys in real, local terms. Mentally converting from our “home” currency adds additional confusion, but usually not for long. Don’t you and nearly all other foreign travelers very quickly overcome confusions over the local currency? Within a few days, we’re bargaining at the bazaar or market and have a very good handle on what something is worth, and whether we’re getting charged “gringo prices.” Surely a transition away from the dollar and into silver or gold, in whatever form, can’t be too much tougher than adapting to foreign currencies, when the need arises.

Yes, there may be short periods when guns and ammo are worth far more than silver, and possibly even gold. But if that holds true for very long, you’re probably going to be dead anyway, unless you can get access to military-level armaments and armor. (Think about it; who’s going to own all of those mortars, tanks, Apache helicopters, SAWs and F-18s if the government collapses completely?) On the other hand, in times of outlaws the common folks tend to band together and get rid of the outlaws. It might take a month, a year or a decade, but it will happen. Still, the key thing to remember is that common folks are not trying to make the world safe for guns and ammo; we use guns and ammo to make our world safe for living, trading and improving life for our families. When that point is reached, the relative value of guns and ammo will drop, just as it did in the frontier West, and the relative value of easily-exchanged commodities like gold and silver will go up.

Yes, there will be times when a bushel (heck, even a cup) of wheat will be worth more than a pound of gold. But almost every civilization since the dawn of time has soon invented a means of exchange–a currency. When that happens, things tend to be a bit more peaceful, farmers are farming and gunsmiths (and all the other trades) are buying food. Farmers that are farming peacefully = more food grown = drops in commodity prices. (As an aside, it seems probable that an effective portable water filter will be worth more than either wheat or gold, at some critical points in most TEOTWAWKI scenarios. Huge municipal water filtration/treatment systems are a product of peace, order and stability–not social chaos. We can live a long time on relatively little wheat or other foods, but only a very short time without pure, clean water. Remember, you won’t be carrying 55-gallon water barrels anywhere–so you’re going to need a sturdy, effective, long-lasting and portable water filter.)

You shouldn’t bet your (and your loved ones’) survival on a single commodity for future barter purposes, whether that be gold, silver, wheat, rye, 9mm, .223, lead, water, gunpowder, canned meat, spices, guns or whatever. IMHO, a reasonably proportional stash of precious metals in multiple forms increases flexibility, reduces overall risk levels and markedly improves your odds. Quite honestly, there is no single precious metals solution for every situation and need. Gold is too valuable for most day-to-day situations; silver can be too low in value for some needs. Why have only a few dozen Silver Eagles, when you can balance your preps and expand your flexibility by also owning a couple of Gold Eagles, maybe some Maple Leafs, and a good stash of 90% silver pre-1965 U.S. coins? And, why not a few reasonably-sized silver or gold bars or ingots, if that is in your budget and makes sense for your situation? You should tailor and balance your holdings to fit your budget, region, lifestyle, perceived risks and survival strategy.

* If you anticipate a “drop everything” evacuation, you’ll be leaving behind most of your heavy silver bullion bars, and your stored items in general, due to weight limitations. So, either don’t buy them, or bury them some of your stores in locations you can retrieve from later, or be prepared to hide them quickly in some other way.
* Rare or collectible coins? Only if you have a very generous budget to work with, and you believe that hyper-inflation is the biggest, and almost-certain, risk out there, and are focusing your preps on long-term horizons.

Just as you plan for redundancy and back-up solutions in other areas of preparedness, you should apply it to your precious metals caches. There’s a reason you have both power tools and hand tools; several varieties of rifles, if possible; specific handguns for specific purposes (your concealed-carry pistol probably is not your open-carry pistol); and spare parts for just about everything. Most would agree it is wise to have a multi-fuel generator and solar power and some micro-hydro power too. You prepare a defensible retreat, but also also pack bug-out bags just in case, right? Many of us have both gasoline and diesel-powered vehicles, if we can afford it. So why wouldn’t the same logic apply to your gold and silver stores? With many different “tools” in your PM toolkit, you can pick the right “tool” for whatever situation you encounter.

Now, back to Micro and Macro: While most of us may encounter micro-situations where precious metals hold little immediate value–in the macro sense, those situations will be relatively rare. Indeed, the odds are much in favor of gold and silver retaining important value in any emergency situation. If the ancient Romans, Greeks, Egyptians, Spanish Empire and many other civilizations over millennia have valued silver and gold so highly–why would you want to bet against it for the day after tomorrow? Next month? Next year? To me, the odds clearly lay with gold and silver. Yes, I still have appropriate firearms and ammo, and some reloading equipment, too. I’m just not going to bet everything on firearms and ammo, in isolation. Just like I’m not betting everything on having only food storage. The common-sense rules of prudence, moderation and balance dictate otherwise.

In short, never put all of your preparedness eggs in any single basket. For most of us, that means we should pursue a balanced and reasonable cache of silver and/or gold, in multiple forms, for multiple potential uses, along with our other balanced and reasonable preps.

Blessings to all, – Gentleman Jim from Colorado

Letter Re: Protein Powders as Emergency Survival Foods

1

Mr. Rawles,
I’ve been following your site for some time and thoroughly enjoy it. The information provided here is outstanding. I’m writing to make a suggestion for a short term and possibly long term survival food.

A quick premise. I’ve been working out and lifting weights off and on for the last three to four years. I lifted weights when I was much younger and I needed to incorporate them to get back into shape. Now that I’m a little older and wiser I’ve been using the internet to find out more about fitness and physical development. I’m by no means one of the monster lifters you see at the gym but, I am relatively fit and what is termed a “hard gainer” or ectomorph somatype. That means gaining muscle mass is difficult for me as my metabolism burns through calories very easily. I’m the slender guy all women hate because I can eat and eat and not gain weight.

As I began to learn more and more about weight lifting techniques and routines I began to learn more about the types of nutrition that would benefit me to include protein powders, shakes, or meal replacement shakes/drinks as they are called.

Most are loaded, or claim to be loaded, with whey protein, as well as other nutrients needed for maintenance and development. These same nutrients are essential for consumption in an emergency and no one goes running to the store for them once the shelves are empty at the super market. Only your most hardcore lifter will be stocking up on mass quantities prior to or during an event/incident. If you come across this guy, stay out of his way. He’s apparently really serious about lifting. LOL

That being said, in an emergency you can buy them without having to fight off the mob at your local vitamin and supplement shop. Many of them recommend drinking them one or two hours before a workout to have nutrients available during your workout and then again within one hour of completing your workout to feed the muscle and begin repairing it from tearing it down. In two servings the caloric intake is between six hundred and one-thousand calories. Some are loaded with even more calories per serving and that can be very helpful for life sustaining nutrition. I can gulp one down very quickly. Those that have been in the military can attest to having limited time to eat and MRE let alone heat one up while on patrol.

All you need to make protein powders into a “meal” or “shake” is water or milk, a measuring cup, and a hand mixer or shaker. You don’t need power to cook or prepare it. Measure water or milk into your shaker add the powder and shake or mix well. You can even measure the powder into small individual ziplock snack bags and put those inside a shaker for storage in your B.O.B. or kit for emergency use.

Now be warned, some of the products I’ve tried taste awful. I know that what I enjoy as far as taste and flavor go more than likely isn’t the same as what anyone else is going to like or enjoy so, I’d advise buying some of the smaller containers to start and see if you can find one that you can enjoy if you intend to use them as an emergency food or supplement. Don’t buy any of the Ready To Drink or “RTD” products. These must be kept refrigerated for whatever reason and they taste horrible. The powders of the same product taste much better. I’ve no idea what they do to make the RTD shakes but, whatever it is they should just stop.

The one I’ve finally decided to use exclusively is Cytosport Muscle Milk. It can be a little more expensive than most but, I get three hundred calories from a serving of the powder with water. It comes in multiple flavors, tastes fantastic, like a shake should and when I mix it with milk it can almost double the calories per serving. Cytosport has multiple products and varying prices. Some are loaded with calories and that can be very helpful for life-sustaining nutrition.

No, it’s not loaded with a ton of sugar, even though in a stressful situation you’d burn through them quickly. Sugars are the enemy of weight lifters to a degree, and more than likely it will be loaded with essential vitamins and minerals needed for survival.

These can be utilized on patrols as well. Mixing the shakes with water and having them in a shaker in your pack makes for a fast meal while on the move. Leaves no garbage behind as you just toss the shaker back in your pack and keep moving. Two or three and an MRE and you can go for a couple days if need be. Where I am they have smaller shakers than I’m used to in the US. These would be very handy for just such a use. Just make sure if you make the shakes ahead of time, the lids/tops are on securely.

I can’t vouch for the shelf life of the powders. I’m sure that they are fairly stable and may store for quite a while. I would wager no one has ever asked companies that manufacture them to test to see how well they keep over time. Usually, they are produced and consumed. For myself, I’ll pack more than few of the large jugs away for when TSHTF.

When I buy them I do so mostly through the Internet. You can save a lot of money like that as opposed to buying in the store. In an emergency you’ll have to take what you can get if you haven’t already stocked some in. I buy the large five lb. jug and I get quite a few shakes from it. I’d estimate I get from thirty to forty shakes out of one jug going by the directions.

One more thing. When using these products and working out (or surviving TEOTWAWKI) your body will more often than not be burning up calories like a blowtorch burns through oxygen. Even without using this, more than likely you may experience some constipation. I know how a stressful or drastic change in environment can kick your body’s metabolism into hyper-drive. Even if you drink a gallon of water a day you can still get bound up. Be mindful of this or you’ll be very unhappy when the time comes to make a sitting head call. – D in Dubai

JWR Adds: I have read that liquid meal replacements that were originally developed for the elderly such as Ensure powder offer more complete and balanced nutrition than do the weight training liquid food supplements. In powder form, they are more compact for storage, and have a longer shelf life than the liquid form. They are also less likely to cause constipation than the weight training supplements.

Influenza Pandemic Update:

Europe swine flu spreads, ‘millions’ infected in U.S.

CBS Reveals Swine Flu Cases Seriously Overestimated

Increase in flu is called dramatic “Massachusetts has seen a jump in flu activity this week that has led one Central Massachusetts high school to close and that appears to signify the arrival of the second wave of swine flu.”

Health officials scramble to counter H1N1 myths.

WHO: nearly 5,000 swine flu deaths worldwide.

Synopsis of H1N1 Activity between Oct. 11-17 (Week 41)

CDC 2009 H1N1 International Situation Update

Germans Unhappy With Alternative Swine Flu Vaccine for Politicians, Military

Economics and Investing:

Nouriel Roubini, One on One: More Doom and Gloom (Thanks to GG for the link.)

GG also sent this: Morgan Stanley analyst: Deflation, Then Inflation. (Gee, where have I heard that before?)

Jen H. forwarded this: Iceland says goodbye to the Big Mac

The recent profit-taking in sliver (down $1 per ounce!) has created a dip that might be a good buying opportunity.

Items from The Economatrix:

“Fighting The Last War”: Proposed Wall St. Reforms Won’t Stop the Next Crisis

Commercial Property Kingpin Capmark Files for Bankruptcy

US Stocks Overvalued By 40%

Ambrose Evans-Pritchard reports: Food Will Never be So Cheap Again

Buy Food Now – Price Hikes are Almost Guaranteed

UK: Halifax’s Overdraft Charges Will Give Customers a Nasty Shock

UK: This Recession Just Became a Depression

Pension Funds to Buy Gold as Insurance

Odds ‘n Sods:

GG sent us an article with more about modern-day urban chicken raisers: When the Problems Come Home to Roost.

   o o o

Reader BB ran across a human-powered product which can act as a well pump. BB’s comment: “Unfortunately, they will not ship to the US, Canada nor Western Europe, but it’s an interesting device I haven’t seen before. Certainly a good small scale off-the-grid solution.”

   o o o

Reader F.R suggested this article: Solar lantern lights up rural India’s dark nights.

Jim’s Quote of the Day:

“Let me tell you why you’re here. You’re here because you know something. What you know you can’t explain, but you feel it. You’ve felt it your entire life, that there’s something wrong with the world. You don’t know what it is, but it’s there, like a splinter in your mind, driving you mad. It is this feeling that has brought you to me.” – Laurence Fishburne as Morpheus, The Matrix, 1999. (Screenplay by Larry and Andy Wachowski.)

Note from JWR:

My sincere thanks to the dozens of SurvivalBlog readers that have donated more than $9,000 to the Linda Rawles Memorial Fund, that benefits The Anchor Institute Orphanage and School, in rural Zambia. With just a bit more, they’ll be able to buy a modest photovoltaic power system. Thanks again for supporting this very worthy charity, in my late wife’s name. Your donations are fully tax deductible.

Letter Re: A Geographically Isolated Retreat Locale: Republic, Washington

Jim –
First, may I join many, many others in extending my condolences for your recent loss along with my gratitude for your work with SurvivalBlog.

I have struggled with the thought of writing this or not for some time. I have finally decided that the potential positives outweigh the negatives.

This past year I bought some property outside of Republic, Washington, population about 900. The town is located about 170 miles Northwest of Spokane, Washington.. Republic is the county seat of Ferry County, the least populated county in Washington State and is classified as a “frontier” environment. Republic sits in a North-South mountain valley guarded on the East by the highest pass in Washington State and on the West by the second highest. Approach from the South is via a ferry across Lake Roosevelt and traversing the Colville Indian Reservation. To the North, the Canadian border is about 30 miles with a similar remote environment in Canada. The nearest towns of any consequence are about 45 miles to the West and 50 miles to the East. Tactically and strategically Republic is in a very attractive location and far from having limited resources, Republic has “everything you need and nothin’ you don’t.” The primary downside, as I see it, is that it is in Washington State where the political climate and many of the laws, including tax laws, run counter to the promotion of an ideal retreat location. Other than that, Republic offers everything I was looking for and the property is everything I wanted – and more! (God is amazing, not only providing what we need but occasionally surprising us with a little extra)

There is property available in and around Republic – some of it very attractive property with water, productive farmland, timber, wild game, and wonderful neighbors with a frontier, self-sufficient attitude – at attractive prices compared to other areas I investigated (Northwest Montana, Northern and Central Idaho, Eastern Washington). Herein came my problem. I am well aware of the cons associated with revealing the location of one’s retreat property. However, someone is going to buy the properties that are for sale, and become available in the future, and I would prefer my new future neighbors be of a similar mindset to myself regarding self-sufficiency and preparing for the future. Therefore I have decided to call a little attention to Republic, Washington as a potential retirement / retreat location for those considering a location in the Pacific Northwest.

Shalom, – The Gatekeeper

Letter Re: A Safe Method for Connecting Home Backup Generators

JWR,
I’ve mentioned before a gizmo called a Generlink which allows a lot of flexibility when using a generator for backup power. This device is installed behind your power meter and, depending on the capacity of your generator, allows you to power any circuit in your home via the selective use of the circuit breakers. It’s especially useful in that nothing has to be re-wired in the house to safely use your generator. It does require some planning for installation in that your power company will have to agree to it’s use and will probably want to install it, mine was installed by my local power co-op for free. Regards, – K. in Texas

Letter Re: Perspectives on Roughing It and Covert Car Camping

My dad kicked me out when I was 19 so I lived in my car for a year on the streets and got pretty good at it.

I’m now married in my mid-40s and have ran several successful businesses and doing well for myself. But, I’m still a cheapie at heart. I absolutely hate paying for motels. When I travel I spend lots of money on food and entertainment, but I hate paying nightly for a bed to sleep on. About 10 years ago I bought nondescript 1994 mini-van Plymouth Voyager and converted it into what I call the Stealth Camper. This small “domestic” looking vehicle comfortably sleeps my wife and I. I built a plywood bed on a welded frame about 16 inches off the floor taking up the entire back giving huge storage space underneath. There are lower access panels and removable sections for daytime use of space. My wife likes extra comfy so with 6″ foam rubber mattress it’s actually more comfy than our home bed. All back windows have solid black fabric, velcro attached so from outside looks like dark tinted (but they are actually opaque). Velrco allows for easy peaking out in any direction. Behind front seats is black opaque fabric so even with lights on in the back, no light can be seen outside of vehicle. I built in a toilet (mainly for her), but I found I prefer to pee in a wide mouth gallon Gatorade bottle. I also installed inside snap lock latches for the back door, back sliding door, and both front doors. If somebody tries to break in while we are sleeping I will have plenty of time to take action. The only thing the Stealth Camper doesn’t have is a built in shower. I’ve come up with a design for a simple roll up sitting enclosure for a gravity solar heated shower which I’ll build later on.

Keep your stealth vehicle clean and well kept. Keep yourself well kept, shaven, clean. Short hair is easier to keep clean than long hair. During warm weather every 2 days buy a shower at a gym or truck stop, or go swimming. I’m told there now are national gym memberships so that is probably your best bet if you travel around a lot. Cold weather you can stretch out a shower every 3 to 5 days. Also camping solar showers work great away from town. Or, to use a solar shower in town; park your vehicle in self serve car wash and give yourself a shower while wearing a bathing suite. I’ve had few strange looks over the years but no hassles. In between showers give yourself a morning clean up with a wet warm rag courtesy bathroom sink at McDonald’s or gas station.

For the first couple of years we would leave the side windows hinged open for ventilation while we slept. This worked fine. But because of security issues we now keep them locked shut, as I’d cut ventilation ducts into the van floor. The front windows have exterior rain guards attached so we usually leave them cracked 1/2 inch for cross-ventilation since the rain guards visually hide the open windows. From the outside, the van looks all sealed up and vacant. I also have installed a low RPM (quiet) 12VDC fan from a junk computer to provide extra ventilation on the floor vent with on a low/high switch when needed. Open windows are a dead give away of vehicle occupancy!

Our favorite time for Stealth Camper traveling is in the cool seasons. Especially if its raining; minimal outside human activity and I’ve never been roused during a rainy night. I sleep deeply when it’s cool and when it rains!

We’ve been roused a few times and learned a few tricks…

#1. Never sleep with an empty gas tank.
#2. Always have a planned escape route. When parking in a parking space, try to back in so you can leave straight out forward. If you need to leave in a hurry while only half woken up; you need everything in your favor. Know the streets around where you are parked. You don’t want to escape down a dead end street.
#3. Have your ignition key available in case you need to jump into the drivers seat for a quick get away.
#4. Sleep wearing skin tight opaque black shirt and black sweat pants or shorts. This way at night time you look nearly invisible from the outside even when you are sitting up front.
#5. Have a roll of quality lint-free paper towels up-front so you can wipe the condensation off the inside front window in the morning.
#6. Have your drivers license / ID / registration, car insurance, etc. ready in case you are roused by authorities.
#7. Do not have illegal items in your possession (or at least find able) in case you are roused by authorities.
#8. When possible pull into your parking space just after dusk. Try to leave in the morning before dawn.
#9. Try to obtain a vehicle (like mini-van) where you can go between sleeping area and drivers seat without leaving vehicle.
#10. Keep the exterior of your vehicle in same condition as average vehicles around you. Blend in. Don’t look out of place. I can drive down any street and easily pick out all the vehicles that are occupied. If I miss your vehicle then you’ve succeeded.

We have California license plates. When I’m not in California I try to park where other “out of state” transient domestic vehicles park; and that’s motels / hotel parking lots. Or at least near motel and hotels. I’ve stayed plenty of times at rest areas without problems but I’ve heard others tell of many problems.

Warm nights are the worst security times, especially on Friday and Saturday nights. Lots of human / kids / young adult and loud activity all night long. People mulling around coming and going. Motel, apartment and young persons areas are terrible. On these worst nights my favorite places to park:
Old folk housing parking lots. Nice and quite.
Hospital back lot parking lots away from activity.
Some motel/hotels have a “quieter” (weekly / monthly rate) side with lower activity. Park as far away from the building as possible! Do not park anywhere near the entrance / exit or buildings. but do park where other cars are parked.
Anywhere truckers park for the night is safer, but this will be noisy. Stay up wind to avoid diesel fumes

Cold especially rainy nights non Friday and Saturday nights are my favorite with minimal human / noise activities. These are my favorite and I’ll often park in these areas in no particular order:
Guest areas of apartment complexes. Don’t park in residential or numbered areas!
Hotel/motel parking lots. Don’t park in room numbered spaces!
Casino parking lots.
Hospital parking lots
Quiet residential areas between two houses [straddling the property line]. Never park in front of somebody’s house.
Always park where other cars park for the full night.
I don’t like to park where there’s lots of activity; where cars are constantly coming and going.
I like to try to find a secondary street, never a primary commute artery. It’s amazing how many people get up and go to work at 4 a.m. in the morning!

I have but never liked parking in:
Store parking lots.
Industrial areas.
Away from other vehicles.

I always prefer to park in near the far end of a mass of other vehicles.

When parking on a street for the night always try to park with a car behind you (preferably larger vehicle than you). Never park at an end of a block or at an intersection. This way you’ll be less likely to be hit from behind by a drunken wayward vehicle. Also your vehicle will visually not stand out. Don’t park on the end of a parking lot for the same reasons.

Don’t park anywhere near “all night businesses”, bars, liquor stores, etc. Or, anywhere kids hang out, skateboard, kid parks. For quiet night, stay away from main roads and freeways.

My stories of strange situations…

When I was 19 living in my car (before I bought the Stealth Camper) one night I was parked end of a dead end road. Police knocked on my window waking me. Apparently nosy neighbors reported me. I told police my Dad kicked me out. He told me to park behind Montgomery Wards and I was never bothered again. I parked there for about 6 months. After that I got permission to park in a friends driveway for the next six months.

With Stealth Camper, one night I was parked on a country road shoulder (I was only vehicle there). Police pulled up behind and shined light for 10 minutes or so then left. I assume they ran my plates. I don’t think they knew vehicle was occupied. I try not to park on deserted roads; it just makes you an out of place target. Always park where other vehicles park for the night.

One hot night in Santa Rosa, California I parked in front of a residential house with all the vent windows open (dead giveaway of occupancy). I was hot, uncovered, and nearly naked. Somebody was mulling around the vehicle with a high powered flashlight trying to peak in the windows and window vents. I guess he he got a view. He yelled “get the f**k away from my house or I’ll call the police”. I said sorry and left quickly (half naked). I always wore my black sleeping outfit after that.

One night in Reno I was parked across the street of a large parking lot near a residential neighborhood. About midnight I heard racing car engine, tire squealing then crash. Then crash again. And another crash. More crashes… I looked out the window at the parking lot now nearly empty this time of night; a car was driving around just crashing into other cars apparently just for the fun of it. As I left the area I happened to notice I had parked that night in front of a police station which I guess it was empty since I saw no activity there!

One night on a side pull out shoulder off freeway in New Mexico I was very tired and needed just a short nap. Highway patrol ran me and vehicle plates then told me there was picnic area a mile up the road. I moved on up there and stayed the rest of the night no hassles.

I camped out in parking lot of Luxor casino Las Vegas. Accidentally slept in. I had all the vent windows open. Security knocked on window and told me to move on.

One night in Texas out in the middle of nowhere I pulled into a 24 hour truck stop and pulled head into parking space in back of the gas station. My wife in a panic woke me up telling me that someone was prying on the windows trying to break in. I jumped into the drivers seat trying to find my keys. Problem is I had to back out of the space and I couldn’t see out the mirrors and I was half asleep and didn’t have a full view of the situation. The “drunk Mexican” was yelling at me saying he needed help, he needed help. “Please help me” in slurred English. I was concentrating on getting the van moving when my wife all of a sudden was yelling “he’s got a gun, he’s got a gun”. Somehow I got the van backed out with out hitting anything and started leaving. The Mexican jumped into a white pick-up truck and started following us. I stopped at the gas pump and saw him in my mirror stop behind me and he got out and was coming up to the van. I floored it and got onto the freeway and never saw him again. Next problem was gas gauge was showing empty and it was 50 miles to the next gas. This taught me three things: Never park with an empty gas tank. Never pull face into a parking space. Always have an escape/defense plan. I made it 50 miles on fumes. I had to wait until morning for that gas station to open and I was a sitting duck the rest of that night but luckily no further problems.

I love urban stealth camping. Over the years, I have saved big bucks and I like the flexibility of not being limited to a motel room. – California Don

Economics and Investing:

Barry Ritholtz sets the record straight, (by way of a link at The Automatic Earth blog): Existing Home Sales FALL in September 2009.

FG sent this: Detroit house auction flops for urban wasteland

Jim Rogers Interview: Long Sugar, But Getting Short Bonds (Thanks to GG for the link.)

Items from The Economatrix:

Derivatives Bill Amended to Let Big Banks Keep Some Contracts Secret

Unemployment Getting Much Worse in 43 States

The Gathering Storm in Commercial Real Estate

How Uncle Sam is Killing Your Savings

Jim Willie: Attack By Central Bank Lilliputians

Obama Wants Banks to Lend More to Small Businesses

Bank Failures Hit 106, Many Are Weak

A Reader’s View of the Current Gold Situation

America Has Lost its Soul and Collapse is Inevitable

Job Market Lands More Grads Back At Home

When Peter Schiff Talks, You Better Listen

The White House Doesn’t Want You to See This. Major job miscalculations!

Jim’s Quote of the Day:

"Inflation has now been institutionalized at a fairly constant 5% per year. This has been scientifically determined to be the optimum level for generating the most revenue without causing public alarm. A 5% devaluation applies, not only to the money earned this year, but to all that is left over from previous years. At the end of the first year, a dollar is worth 95 cents. At the end of the second year, the 95 cents is reduced again by 5%, leaving its worth at 90 cents, and so on. By the time a person has worked 20 years, the government will have confiscated 64% of every dollar he saved over those years. By the time he has worked 45 years, the hidden tax will be 90%. The government will take virtually everything a person saves over a lifetime." – G. Edward Griffin

Letter Re: Survival Notes from the Dominican Republic

Jim,

I’ve recently read several of your books and found them both interesting and educational. I would like to offer some personal insights based on my experiences from living in a small rural town one of the larger Caribbean islands. Most of my notes are cheap solutions used by people in developing nations all over the world. There may be better ways, but these work and cost next to nothing.

Water:

There is something especially disturbing about opening the faucet and hearing a sucking air sound. Not being able to shower, flush, or wash dishes is the worst.

One or more 55 gallon drums and 5 gallon plastic buckets are essential items to have. When you see that hurricane on the news, put the barrel it in the shower and fill it up right away. Add a few capfuls of bleach to make it keep longer. Expect the quality of water from the town water supply to drop. Rainwater collection should be set up right away. If possible the roof should fill a large cistern with a pressure pump. A gravity tank should be put on the roof.

Washing up from a bucket is easy enough. A small plastic cup and a five gallon bucket makes is easy. If the water is cold don’t try to heat up all the water. Bring a good sized cooking pot to a near boil and add it to the cold water. A person can wash easily in 2 gallons of water.

Pouring about two gallons of water rapidly into a toilet from a 5-gallon bucket will flush a toilet.

Washing dishes from a bucket without using gallons of water is tricky. It takes some practice to do it right. If you don’t stack your dirty plates and wash them right away, you only have one dirty side and no dried food.

It is very easy to contaminate your water supply. Dirty bucket bottoms and careless bathing are common causes, be vigilant.

Food:

Our community is an exporter of meat, milk, eggs, rice, vegetables and we have a 365-day growing season. Most families have a garden plot to supplement household food. Storing food is always wise but not nearly the problem it is in some other locations. Much of our farming is done with hand work.

Power:

We have daily blackouts here and most houses have invertors with battery backups. Since we have occasional power most people do not have generators but just charge when the lights are on. Most businesses have diesel generators.

A 2.5 KW inverter system with 4 deep cycle batteries will keep a few lights on, a laptop and a fan or two for about two days and costs about $2,000. The better systems run on 24 VDC. Here we are all very aware of vampire appliances [aka “phantom loads.”]. All those VCRs, TVs, microwaves, wi-fi boxes, alarm systems, clocks, all pull a significant load. You need to learn your house circuits and unplug and turn off the breakers for things you don’t need. Low wattage bulbs are essential.

Running a generator for about 4 hours will charge most battery systems. Your generator will need to be at least twice the capacity of your inverter. Operating like this you can have basic lighting for the cost of about 2 or 3 gallons of gasoline a day. Running a refrigerator off a battery backup system is just not cost effective. Many people have put up both solar and wind systems as a way to produce some additional power to keep the batteries topped off.

A few simple solutions: Computer UPS systems usually operate on a 6 or 12 V battery. It is very easy to open one up and connect a large battery by running wires through the back of the case. This will give a much longer run time. While you have the case open, take a pair of pliers and crush the annoying power alarm beeper. The charger on these systems is very small and will take a very long time to reach a full charge. An off the shelf battery charger will speed things up. Alternativel,y your car can be used to charge the batteries (12 VDC only)

Guns:

While being armed is important, life is so much easier when there isn’t a conflict in the first place. Some people always seem to have problems wherever they go and need to pull out weapons while others seem to walk through the valley of death without a care in the world. Spend some time researching body language, and read books on interpersonal relationship skills. Besides improving your life right now, it could change a potential fatal firefight into a new friend.

Police:

When we have a crime wave, the police set up road blocks coming into and out of town. Rarely does this cause any real problems for honest people but you do need to have your paperwork for your car or firearms on hand. A smile and a friendly face makes things go much smoother. Acting aggressive or angry will get a messy and thorough search of your person, passengers and your car at a minimum. Knowing your local police makes a big difference. Sometimes we are asked to “help them out” which is code for a bribe. Either pay it with a smile, say sorry but you can’t today, plead poverty, or turn back. Fighting it just is not worth the trouble.

Crime:

Most traveling gangs are small and short lived. They rarely survive an encounter with police. It is very hard for a crime group to survive outside of their own neighborhood where they have local knowledge, a place to sleep and the support of family and friends. On the flip side the crimes committed by these people are usually the most brutal.

Local criminals gangs are much harder to control. Often these are well-connected individuals or gangs who are very good at remaining undetected. Some of them are drug smugglers, cattle thieves or burglars. Persons who are well liked and respected in the community are usually left alone. If you see large gangs forming, seriously consider leaving the country as it is a no-win situation.

Home Security:

This is a very safe country, but it is safe because people here do no depend on the police and protect themselves. With that in mind I have noted some of the more common security precautions here.

My experience here is that a house with lights on and occupied is the house that is left alone. Your best defense is to be the least interesting but hardened house in a occupied community. Vacant houses attract soft criminals and people who need a place to sleep. Most Dominicans always have someone home in the house. Night time home invasions are rare but they do happen. People who do this time of crime are extremely dangerous experienced and hardened criminals.

Isolated houses are at the worst risk for the most serious attacks. A gated community, walled yard, electric gate, bars on the windows, dogs, even armed security guards are all common place here. Country people live in small groups of three or more houses with the fields surrounding them.

Your most vulnerable time is being ambushed entering or leaving your home or car. When designing your landscaping, don’t build easy ambush points for attackers. This sort of thing doesn’t happen much in a small town.

Protests/Strikes/Riots:

Occasionally when the power or water is out too much, the citizens will organize a protest/strike/riot. Often the organizers are union leaders or other non-governmental community leaders. The usual format is to shut down the with road blocks and burning tires. Much of the bad behavior is more for show than reality but trying to pass the road blocks will result in getting your vehicle wrecked by the strikers. It is important to know why people are protesting and to be sympathetic to their cause (in many cases it is well justified). Their intention is to cause just enough of a disruption to get government the government to resolve the problem without getting arrested. Trying to pass the roadblock means that you are disagreeing with the reason they are striking. Know your local area for alternate routes and don’t try to travel during strikes.

Dogs:

Good dogs are essential. A pair of large dogs of a known breed are a very significant deterrent. Rottweiler, Doberman, German Sheppard, pit-bulls are recognized and avoided. Dogs differ widely in personality. Be sure yours matches your needs. Be aware and realistic of their shortcomings. I know too many people who depend entirely on a easily circumvented dog for security. Professional thieves routinely outmaneuver, poison, or shoot dogs.

Don’t overlook the value of small “yippy” and intelligent dogs like Chihuahuas. They are light sleepers, a second set of eyes and ears and are cheap to feed. They often work well with the bigger dogs.

Watch your dogs. If your dogs suddenly become sick, it may mean they were poisoned and you should expect a robbery that coming night or the following day. Look for your dog before you pull into your drive or get out of your car. If there has been an intrusion it may be hurt, nervous, missing or dead. This will often be your first indication of an awaiting problem.

Community

After a disaster (hurricane, flood, earthquake) the best thing for everyone is to keep the community together. Building a good reputation and personal relationships with neighbors and community leaders will make all the difference when resources are scarce and people are scared. The people who are capable leaders and community contributors often get first dibs on any help that does arrive and the right to make decisions on how goods are distributed.

Filling sandbags, organizing relief, passing out information, providing power, clearing roads, etc will make friends and build relationships that are not soon forgotten. This sort of thing can really bring a community back together in a hurry. We all depend on each other and leadership through positive action is a great way to rebuild. Just as looting is contagious, when people see others working together and helping, they are apt to join in. I have seen this numerous times here.

Transportation

Propane is subsidized here and is significantly cheaper than gasoline. Many people have adapted cars and trucks to run on both fuels using a special carburetor. As propane stores well this is a good emergency option for transportation, cooking, and power generation. Additionally propane machines can run on biogas and syngas.

While horses are very common here there would be a shortage if things really went bad. They did become proportionally more valuable as the price of fuel shot up.

I rarely see wood gasification mentioned as a alternative fuel supply. (See the Wikipedia page on wood gasification) This is an excellent modification that was used heavily in Europe in the 1940s. In my opinion, for most people this is the best solution to combustion engine power after a complete breakdown. Both alcohol and biodiesel require working farmland and refineries.

Post crash employment:

Anyone who can provide alternative sources of food, power, fuel or light will do well. A little Google work will show what technologies work on a small scale and provide business opportunities both now and after. Additionally, people here who can repair things never seem to make much money here but they always have work and food on the table.

Currency and hyperinflation:

After a major bank failure here, the currency here devalued by a factor of four in about two years. As the slide begins there are lots of opportunities to buy up things at old prices as many people price things based on what it cost them, not what the replacement value is.

As prices shot up, wages lagged way behind. Interest rates sky-rocked. Food prices shot up. Skilled labor prices went through the roof. The economy stopped dead because it becomes impossible to price things and nobody wants to work.

At the end of the slide the asking prices for everything got just crazy high, and the bid prices so low that almost no transactions took place except as acts of desperation.

Three years later, the currency has stabilized. Interest rates on loans are still slowly retreating. Merchants learned to price goods on replacement cost. Prices are often quoted in USD instead of local currency. Asking prices never really came down, but bid prices slowly rose up and as the spread reduces the economy starts to move again. Salaries are paid in local currency, but pegged to the USD for stability.

I wasn’t expecting to write such a long letter but maybe some of this will help people prepare and know what to expect. Sincerely, – S.H.

Letter Re: Using Direction Finding on Looter Bands

Dear Mr Rawles,
I’ve just finished reading your latest book [“How to Survive the End of the World as We Know It: Tactics, Techniques, and Technologies for Uncertain Times”], and let me begin by thanking you for writing it. I have just one small quibble in Chapter 9, Communications and Monitoring. This is something we both missed, and it didn’t occur to me until after reading this chapter.

While I agree with you that looters are unlikely to have the inclination, hardware, and talent to do direction finding (DF) on a retreat’s radio transmissions, the reverse is not necessarily true. If the readers follow your suggestions and get involved in ham radio, it’s quite likely that they may have the means to DF the looters. If you know where the looters are, you also know where they are not, and this could be very useful information.

A retreat with a single DF antenna for CBs may not seem to be particularly useful, but bearings on the looters combined with a maps of the area might serve very well.
In addition, if you either have a large retreat with space for two widely separated antennas, or two retreats working in tandem and communicating on a VHF frequency
or field telephone, it’s possible to get a good fix on where the looters are. Best Regards, – Jeff K.

JWR Replies: I used to do communications intercept and radio direction finding work, when I served as an Army intelligence officer. It is a skill that does take practice, but it isn’t rocket science. As described in my novel “Patriots”, all it takes is at least two intercept sites equipped with loop antennas, compasses, and enough time to get lines of bearing (LOBs) on a groundwave signal before it goes off the air. Those LOBs are plotted on a map. The intersection of two LOBs is called a “cut”, and it takes three or more LOBs to establish an accurate “fix” with a half-way decent circular error probability. (Actually an ellipse, but I won’t bore you with the math.) A single intercept site with a loop antenna cannot effectively do DF in part because there is no expedient way to eliminate the “front/back” loop antenna ambiguity. (You don’t know if your LOB is correct, or if it is off by 180 degrees.) This ambiguity problem was solved by the introduction of later DF rigs such as the AN/PRD-11, that use an H-Adcock antenna array and some clever processing power to do precise time-of-arrival calculations–actually comparing the micro-second difference in time when the speed of light signal strikes the different antenna elements. My great-uncle Albert Michelson would be proud of the designer!

If anyone wants to become adept at DFing in the field, I suggest that they get involved with a Fox and Hound group, organized by their local ARRL-affiliated ham radio club. It is great fun, requires only rudimentary directional antennas, and it will build a very useful skill.