Economics and Investing:

Mark Skousen: Gold Surge Points to Higher Inflation

Reader Isaac S. sent this: Greenspan Says US May Soon Reach Borrowing Limits

The latest bank casualty in the FDIC’s Friday Follies: Nevada Security Bank. (It is notable that the pace of bank failures is more than double last year’s.)

Items from The Economatrix:

Fannie-Freddie to Delist Shares from NYSE

Coffee Prices Jump 20% in One Week

Deficit Terrorists Strike in the UK

Job Woes Persist as Jobless Claims Rise

Ambrose Evans-Pritchard: The Euro Mutiny Begins



Odds ‘n Sods:

Several readers suggested this fascinating interactive map: Where Americans Are Moving. If you click on an individual move segment, it shows the average income level of those moving. As an interesting example, click on Teton County, Wyoming. Wow! Talk about Galt’s Gulch. (Could this be, because there is no personal income tax in Wyoming?)

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S-Gnome found a web site useful for those of your readers trying to stock up on food while surviving on a limited budget: Eating Well On $1 A Day. S-Gnome’s description: “This guy takes couponing to a whole new level and manages to get hundreds of dollars worth of food for around 30 dollars.”

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Tamara over at View From The Porch posted a photo guaranteed to cause a few chuckles. Note the “Jayne” spelling. I suspect that is an homage to the Jayne Cobb character in the television series Firefly and the spin-off movie Serenity.

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Reader RBS sent this piece from Time: First, China. Next: the Great Firewall of… Australia?





Note from JWR:

Just two days left! The special sale price for the “Rawles Gets You Ready” preparedness course will be discontinued on June 21st. So order yours, soon!

Today we present another entry for Round 29 of the SurvivalBlog non-fiction writing contest. The prizes for this round will include:

First Prize: A.) A course certificate from onPoint Tactical. This certificate will be for the prize winner’s choice of three-day civilian courses. (Excluding those restricted for military or government teams.) Three day onPoint courses normally cost between $500 and $600, and B.) Two cases of Mountain House freeze dried assorted entrees, in #10 cans, courtesy of Ready Made Resources. (A $392 value.) C.) A 9-Tray Excalibur Food Dehydrator from Safecastle.com (a $275 value), D.) A 500 round case of Fiocchi 9mm Parabellum (Luger ) with 124gr. Hornady XTP/HP projectiles, courtesy of Sunflower Ammo (a $249 value), and E.) An M17 medical kit from JRH Enterprises (a $179.95 value).

Second Prize: A.) A “grab bag” of preparedness gear and books from Jim’s Amazing Secret Bunker of Redundant Redundancy (JASBORR) with a retail value of at least $400, and B.) two cases of Meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value).

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

Round 29 ends on July 31st, 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.

 



Forming a Local Preparedness Mutual Assistance Group, by Mark in Oklahoma

So you are interested in forming a group of like minded preppers. Good ! Now what? First and foremost you have to understand forming a group is damned hard work and not a little frustrating at times. Probably not what you wanted to hear but I have helped formed a large mutual assistance group (MAG) and two formal Teams. What is the difference between the two? A MAG is a less formal organization and your starting point. I should point out that not all groups reach the level of a team which is fine. A team tends to be a much more structured entity and that is not for everyone. So how do you get started, by watching and listening. Unfortunately there is no national preparedness ranking list we can consult, “Oh hey great my neighbor is a Level Six Prepper! I’ll go see if he is interested in teaming up!” You listen at work, at church, your social clubs, the different places you spend time. Who is talking about what, who is reading what. Did someone just say they are worried about food prices and swine flu? Hmmmm The Internet is obviously another resource but a word or three of caution. People can claim whatever they want from the anonymity of cyberspace. If you think you’ve found someone out there go slowly. Do not pass along gobs of personal information about yourself, if they are for real they will understand and do the same.

Staying with the Internet theme for a little bit. Say you are on a forum of like minded folks. What are you looking for to help you identify potential group members? Proximity to you is a big one, there is nothing wrong at all in talking to someone clear across the country and getting to know them as much as possible. It has advantages but for the purpose of putting together a regional group not the best first choice. You determine who is within a radius of a tank of gas driving distance, or fifty miles or whatever criteria you settle on. Once you settle on it though stick with it. Read their posts, as many of them as possible. The purpose of this is to help you get a better feel for them. If you are still interested and comfortable reach out via Private message or email. “Hey saw that you are in my general area, wanted to say hi” and see what happens. Do they respond, ignore you or what? If they do respond take it slowly, better to lose some time due to prudence that get the wrong person in your group who now knows all kinds of things about you! Continue to talk, exchange e-mails and then phone calls. Set up a face to face (FTF) meeting and use a neutral location. Trust your instincts, if something doesn’t feel right, then listen to it. If it feels okay then keep meeting, at some point you will both have to give up some personal information and then home locations. Don’t give away your whole plan or location of all your goods. Trust is earned and that goes both ways. Offer to help them out removing that dead tree, ask for help fixing your car. This is about more than just cans of corn or bullets. It is about demonstrating in a meaningful fashion the type of person you are and learning about the person they are. 

A period of time has gone by and you have identified and gotten to know a group of like minded folks. You’ve introduced them to each other and continued to foster relationships between them as well as with yourself, great! Now what? You have a network (which is a very good thing) but not a group yet. How do you move to that point? Again and I know I am probably killing you by saying this all the time but I’m not going to apologize for it, take your time. Bring up the idea to each of them on an individual basis and see what kind of reaction you get. Is it positive or luke warm? If there are other groups already in operation on the Internet forum use them as an example, learn from them. Ask them questions, talk up the benefits of grouping together, be a cheerleader for mutual aid. May sound silly but it does work. Like-minded people are generally as a rule not stupid.

Get the various people together for a social event, be the host for it if you have to. Shared socializing is a great bonding tool and it also lets people see how each other function in a social environment. “Oh great Bob is drunk and its only 2 in the afternoon.” That is a pretty good indicator that he is not a good choice for group membership. Sally and Fred showed up early to help set up — a good point in their favor. It really does work that way folks, I promise you.

 You broach the subject of forming a group (again not a team that might come later) and let the conversation go forward. Don’t relinquish your role as moderator but let the people talk, both good points and bad. Watch their body language and listen to their voice. Is he/she really excited about the idea or not? If the group is for it then you proceed with some basic outlines and questions. Things like “If there is an event whose location is best suited for a group? or “Would it be smart to pre-position a few things with each other? and allow the conversation to move forward. Take your time but each step forward no matter how small is an improvement.

So you’ve had your meeting and most of the people there are in agreement that a group needs to happen. What is often best to start out with is a MAG. This gives the members a simple structure to work in and develop. It would be a good idea to have some basic rules for the group in writing that are mutually agreed upon. Set a few small goals for the group and work toward completing them. This gives the members focus and a sense of accomplishment. It also allows everyone to see how everyone else is doing. Is Bob pulling his weight or does Jim always just get the work done at the deadline? As more goals are accomplished the overall preparedness of the group improves as does the feeling of ownership among the members. What kind of goals are we talking about? Setting up 72 hour go bags is a good start. You have everyone put their own bags together and then at the next meeting go over the lists of what people put in theirs. This is essential to keeping the group moving forward, you trust that people are doing the work but verify it. This goes for all members.



Two Letters Re: Motorcycles and Motorcycling Skills

Jim,
If anyone wants to learn the right way to ride a motorcycle, the best way, in my opinion, is to refer to the Motorcycle Safety Foundation. I know in my state, if you get your learners permit, take the course and complete it successfully, you get a waiver and do not have to take the state road test to receive your motorcycle endorsement on your driver’s license. Also, depending on your insurance company, you get up to 10% off your insurance premiums. – Sid, Near Niagara Falls

Hi Jim,
When it comes to Survivalists writing about motorcycles, either online or in hard copy, a lot of writers simply get it wrong.

In addition to being an early retiree, semi off-the-grid prepper, I’m proud to say that I’m the owner of a modified KLR650 (civilian version of the standard military issue dual-purpose motorcycle), with combination military-style tubular engine guard and highway touring footpegs, and the lowest-profile Corbin saddle (similar to what the BMW GS650 uses).

I originally got the motorcycle in black, but over time, was able to paint the motorcycle in a flat, dark sand color, while subduing the chrome wheels in Rustoleum’s textured flat black (mainly because the tires were still on the wheels while painting them, in addition to the fact that any other color would have made the bike stand-out, in the current world).

The KLR650 is the ultimate do-everything motorcycle. You can go into the dirt with it, jump with it, and tour with it. I’ve driven mine from Washington state to Arizona and back, with no problems, except for some preventative pull-overs in Phoenix, due to the temp. gauge reading and traffic. And it is one of the ultimate get-out-of-traffic vehicles, as I have been able to take the bike routinely over curbs, between parking lots, vacant fields, etc. Also,the KLR650’s cargo rack’s outer width still fits inside the inner width of a standard military ALICE pack frame, perfectly!!

You can even go Road Warrior with this motorcycle, and buy some octane boost. It seems to like it, along with with the higher octane blends. I’m well aware of the diesel conversions that have been done for the Marine Corps, by Hayes Diversified Technologies, in southern CA. But while these diesel conversions (the Mother Of All “torquee” Engines) do outperform the standard KLR650 in the dirt, they only get the street performance of a 250cc bike. Plus, the diesel engine makes them

I was lucky to get the 2007 model, the last year before it got redesigned, with snazzy colors, dual disk breaks, and 50 lbs. heavier. No one I’ve ever met liked the newer model, so do yourself a favor, and look for the 2007 and older models, preferably in the more tactical green color.

I also own a Yamaha TW200 dual purpose, which is even more versatile, because not only can it carry two people with stuff on a cargo rack, but with my modifications (lightweight rear sprocket), it’s light enough for two people to actually pick up the motorcycle and put it in the back of a truck. And, get a top speed of 80 mph without excess vibration!



Economics and Investing:

Eric Sprott: Gold Running in Short Supply. (Thanks to Todd for the link.)

Sharp Shepherd sent us this: More Than 90 Banks Miss TARP Payments

Items from The Economatrix:

Gold is an Armageddon Hedge

Uncertainty Restores Glitter to an Old Refuge, Gold

How All Of Us Pay for The Derivatives Market (Caution: There is a bad word in the title…..)

It’s The Ratios, Stupid (Why the US Will Default on its Debt)

Wholesale Prices Fall 0.3 Percent in May

Home Construction Sinks, Building Permits Down

The Snowball Scenario Sinks Sovereigns

World Bank Says China’s Economy Slowing



Odds ‘n Sods:

EMB suggested this discussion forum thread: My Emergency Communication Box (Ham radio)

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Trent H. flagged this article in an Australian newspaper: Our own extinction is forecast, but he’s going by dead reckoning

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The folks at Directive 21 (one of our advertisers) wrote to tell me that the recently unavailable Stainless Steel Berkey Water Filter systems are now back in stock, and back orders are being processed and shipped.

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The National Geographic Explorer special ‘Electronic Armageddon’ is going to be replayed this Saturday, 6/19 at 7:00 PM and on Tuesday, 6/22 at 6:00 PM on the National Geographic Channel (typically listed as ‘NGEOG’ or ‘NGCHD’ or ‘NGC’). Check your local listings!



Jim’s Quote of the Day:

“America faces a new culture war. This is not the culture war of the 1990s. It is not a fight over guns, gays or abortion. Those old battles have been eclipsed by a new struggle between two competing visions of the country’s future. In one, America will continue to be an exceptional nation organized around the principles of free enterprise–limited government, a reliance on entrepreneurship and rewards determined by market forces. In the other, America will move toward European-style statism grounded in expanding bureaucracies, a managed economy and large-scale income redistribution. These visions are not reconcilable. We must choose.” – Arthur C. Brooks, The Washington Post, May 23, 2010



Note from JWR:

Just three days left! The special sale price for the “Rawles Gets You Ready” preparedness course will be discontinued on June 21st. So order yours, soon!

Today we present another entry for Round 29 of the SurvivalBlog non-fiction writing contest. The prizes for this round will include:

First Prize: A.) A course certificate from onPoint Tactical. This certificate will be for the prize winner’s choice of three-day civilian courses. (Excluding those restricted for military or government teams.) Three day onPoint courses normally cost between $500 and $600, and B.) Two cases of Mountain House freeze dried assorted entrees, in #10 cans, courtesy of Ready Made Resources. (A $392 value.) C.) A 9-Tray Excalibur Food Dehydrator from Safecastle.com (a $275 value), D.) A 500 round case of Fiocchi 9mm Parabellum (Luger ) with 124gr. Hornady XTP/HP projectiles, courtesy of Sunflower Ammo (a $249 value), and E.) An M17 medical kit from JRH Enterprises (a $179.95 value).

Second Prize: A.) A “grab bag” of preparedness gear and books from Jim’s Amazing Secret Bunker of Redundant Redundancy (JASBORR) with a retail value of at least $400, and B.) two cases of Meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value).

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

Round 29 ends on July 31st, 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.



Loose Lips Sink Ships, by Margaret

The title of this piece is a motto used during WWII by which the population was being warned to be circumspect about what they discussed and with whom they discussed it.
It seems to me that it may be timely for the motto to be recycled for use by the Preparation Community.
I’ve read over and over in this excellent blog and in other articles “find someone or a group of people you can trust”.
I think that instruction is much more difficult and more time consuming than stocking up on beans, Band-Aids and bullets.
Although I live in Australia and the political and geographical issues we face are somewhat different from those faced by Americans, so it can be said that issues themselves are different in every country in the world both on a macro and micro level.

But the problem of “trust” remains no matter where you live.
My Oxford Illustrated Dictionary has a long list of definitions that start out with “Confidence in, reliance on, some quality of person or thing, or truth of statement …..”
So who do you know that fits that definition? 

Let’s start at the macro level with Governments.
I don’t want to start or become involved in political debates but I doubt very much whether there are many people left who totally trust their government no matter what country they live in. But we (in the majority of cases) elected them and we have the ability to make our displeasure known by voting them out next time there is an election. The trouble with that of course is “the devil you know is better than the devil you don’t know” and they have the ability and power to make less-than-sensible decisions while they are in office. But at least it is an option.
This lack of trust or confidence in them probably adds weight to the reasons why we are preppers.
As individuals, there’s not a great deal we can do at national levels apart from continually writing to our elected representatives – and that can be time consuming and very emotionally draining (and often quite useless).
In the meanwhile I think it is needful to keep a close and watchful eye on the legislation and policies that get passed so that you can evaluate how those measures will impinge on you and yours. Try to make it a habit to watch the news and read papers or web sites that keep you up to date. Depending on what the government – whether federal, state or local – does, it may be necessary to change the way you prepare for disasters whether those be financial, natural or manmade.
The operative word here is Change.
The bottom line is Survive.

Micro levels
Trust at a micro level is even harder.
Who can you trust? What is the factor that makes you trust or distrust an individual? Can you isolate that factor?
There are some extremely charming people out there, they are good company, witty and friendly … and while I may enjoy their company, I wouldn’t trust them an inch – especially with my prepping plans or the safety of my family.

Pre-TEOTWAWKI: there’s still time.
Everyone has many acquaintances – workmates, people in the neighbourhood, relatives – the list is endless. (And just because a person is a relative, it doesn’t necessarily follow that you have to trust him/her.) While I dislike the idea of putting people into categories, it is something we all do almost unconsciously. Some people we like more than others for many reasons. 
There is still time to try to look more deeply into a person’s character whether or not he/she is an avowed prepper to decide whether that individual can go on your Trustworthy List.
“Liking” a person is different from “trusting” a person. I like a lot of people but I trust very few.
Conversely there many people you may not like particularly but who are utterly trustworthy. You can work with a person and not like him/her but who is always there when it counts.
And when the crunch comes you need to be able to pull out your Trustworthy List.

Over the course of many years I have been fortunate enough to acquire four really close friends that I could trust with my life, rely on in crises and for whom I would put my life on hold if they needed me.
They are my Inner Circle.
In the Middle Circle there are the people from my Trustworthy List.
In the Outer Circle are People Useful to Know
Then there is Everyone Else
The boundaries of these lists are not engraved in stone because I am bound to meet more people and individuals change with experience and maturity.

I don’t, won’t and can’t give you a set of absolute criteria that will allow you to determine Trust because trust is often related to a gut feeling and that is something that is indefinable and subjective.
But I would urge you to disregard the appearance of a person – the clothing, the mannerisms, the age and the language and try to look more deeply into that person’s character. A friend of mine says “Just because they speak English, doesn’t mean that they think the same way you do” and it is the Thinking part of the individual is the important part.

If this article has encouraged you to think more closely about the issue of Trust without slipping over the edge into paranoia, I’m sure your prepping plans will proceed more smoothly.



Product Review: Timbuk2 Backpacks

I can’t speak highly enough about Timbuk2 and their products. I received one asa gift in 2003. Since then, I’ve carried it all over the world including a war zone, on business, to conventions, while driving.
I’ve stuffed it to the point where I needed a knee to apply enough pressure to close it. It’s been dragged, carried, tossed, shoved, buried under luggage and cargo, through airport security hundreds of
times, and there’s not a loose seam or worn zipper anywhere. It seems to be as indestructible as textiles get. While this style is no longer available, it’s demonstrative of the breed.
Timbuk2 started in San Francisco, designing and making bags for bicycle messengers. They still act like a small company in terms of service and support, including a lifetime guarantee on materials and
workmanship, spare straps and hardware, and a 20% discount on a new bag for trading in an old model, in any condition.

My particular model is the Timbuk2 Data Dump. When stuffed to what should be a breaking point, it exactly fits the carryon size limits for aircraft. The shoulder straps are comfortable, contoured, designed for people
with shoulders, adjustable, with a hip belt. The laptop compartment is padded enough to cushion a computer, and to pad against the wearer’s back.
The accessory pockets are integral, collapsible, and well thought out, with lots of mesh, slots and loops for compartmentalizing stuff, from business cards and pens, to toiletries and computer accessories. The
main compartment opens wide for access, then zips closed and latches down to minimize profile.
The outside is tough and sufficiently padded to keep contents secure. The bottom is a tough rubber over nylon. There are thumb loops/carabiner attachment points on the shoulder
straps and back, and a sturdy, solid carry handle atop with a stitched in piece of hose to reinforce it.
Their models change regularly as new technology is developed, and they offer not only a variety of colors, but a build-your-own option for style, size and color. Some of their bags are imported, made under
good supervision. The custom bags are American built (it seems more appropriate to say “built” rather than “sewn” for these engineering masterpieces).
You’ll pay a little more, but the quality is beyond compare for a travel bag/day pack/briefcase of this type. For a smaller, unobtrusive BOB or a reliable daily carrier, I can recommend this company’s products without reservation. – Michael Z. Williamson (SurvivalBlog Editor at Large)



Letter Re: Motorcycles and Motorcycling Skills

Dear Jim,
The roads are getting worse, gas prices are high, and the taxes keep going up. Something has to give. So far road maintenance seems to be one of the breaking points. I have witnessed roads evaporate. I have witnessed them get consumed in vegetation. I have traveled in the Sierras in places where the 4WD was getting stuck and knew an off road or dual sport motorcycle would cross these places easily. I can’t help but think while I’ve learned to shoot rifles and purify water and stitch wounds, shouldn’t I put at least as much effort into examining alternate transportation options?

So long as law and order remain, we still need to keep jobs to pay the taxes, and complete collapse seems very unlikely at this point. It seems to be more a matter of accepting new standards, and figuring out ways to retain the ones we value most, ones like freedom of travel. The world is already changing due to the end of cheap oil, and the financial melt down also results in various system failures, including road maintenance. Is it not reasonable to see roads get so much worse, particularly where people don’t live to pay taxes for upkeep, that rural roads will become patchworks of pavement, gravel, and dirt? If so, and in the face of fuel shortages, what is the best way to get around?

Motorcycles. Ones that can ride on the dirt, light enough to pull out of the mud yourself, and yet remain street legal once you get to the “highway”. We’ve seen them running around in the countryside, exploring fire roads and logging roads, country lanes, that sort of thing. We’ve scoffed at the MZB acronym, but what if we should be learning to ride a motorcycle ourselves, just as we’ve learned to shoot? Isn’t this just another critical skill? I have been investigating this for several years now, including watching video of travel in deeply rural locations and been impressed by the terrain a motorcycle can cover in a day. I can’t pedal that far or fast. Knowing that a motorcycle can go around many obstacles which would stop or delay a car or 4WD truck/jeep is points in its favor. True, its not going to carry much, but You are the most important part, and as a getting-around vehicle they’re very good at what they do.

As for safety the number one threat is yourself being foolish, and the number two is cars not paying attention. If the roads continue to fall apart (and they will continue) and gasoline rationing gets instituted by the government, both threats will be much reduced. Finally, safety also relies on proper gear, not all of which is expensive. Expensive gear is better, just as a more expensive rifle probably shoots more accurately, but a motorcycle bought for a few hundred and some elbow grease applied is just as good for travel as one costing thousands and may be easier to maintain or convert to E100 you can make on your ranch or buy in town at the co-op or general store. Being able to safely go faster and further than a 4WD SUV on the same road has its benefits and while the SUV still has value on grocery day, the motorcycle will get you to work (or the rail station in town) the rest of the time. Barring rain or snow, at least. Not fun in a thunderstorm, but what would be on a dirt road? We’re used to driving anyway, because on pavement it doesn’t matter much, but once the roads go to dirt we’re going to get used to finding a motel and wait it out. That may seem ludicrous, but think about the world prior to Eisenhower’s interstate highway system. Its not unreasonable at all. We’ll adapt and adjust because we’ll have to. Preparedness means thinking about all the options. Give the motorcycle serious thought. Best, – InyoKern



Economics and Investing:

And so, inexorably, the The Mother of All Bailouts (MOAB) grows: Obama Officially Begins Push For New Bailout of the States. (Thanks to G.G. for the link.)

D.D. sent this: “Housing Still Sluggish”—Harvard study uses the “D” word to describe the real estate market

From the ever-cheery Ambrose Evans-Pritchard: AXA fears ‘fatal flaw’ will destroy eurozone. (Thanks to G.G. for the link.)

Y.K. suggested a recent audio podcast interview of Gerald Celente by Lew Rockwell.

Brett G. flagged this: Volcker Warns: We Are Running Out Of Time

Items from The Economatrix:

EU Chief Warns “Democracy Could Disappear” in Greece, Spain and Portugal

Hidden Debt is UK’s Real Monster

US Banks Set to Lose Swaps Fight

How to Plan for a Double-Dip Recession

BP’s Downside is Worse than You Thought

Fed Adopts Rules to Protect Credit Card Customers



Odds ‘n Sods:

Here is a link to the Milo Nordyke interview on CNN that I previously mentioned. Nordyke is a proponent of peaceful uses of nuclear bombs–including the possibility of using nukes to seal off deep sea oil leaks.

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J.M. in Michigan sent me a link to some videos about “off grid” projects. Go to Vimeo.com and in their search box enter: emas. This takes you to about 10 pages of videos on topics like High Pressure Hand Pumps, Rain Water Harvesting, Water Storage Cisterns, Ferro Cement Tanks for Water Storage, Using the Sun to Heat Homes, Latrines, and many more.

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Brian B. sent this alert: NRA cuts deals to limit free speech.

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I was doing some web wandering, and I found an interesting USGS map of major earthquakes in North America recorded from 1979 to 1996. The USGS also has a variety of similar seismic maps.

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Calvin in Kansas mentioned a YouTube video of a former Marine singing an oft-ignored verse of our national anthem: The Star-Spangled Banner. The later verses aren’t considered politically correct. The anthem’s lyrics were derived from the the poem “Defence of Fort McHenry”, written by Francis Scott Key, in 1814. The full lyrics, by the way, are worthy of some study and pondering.)