Economics and Investing:

Unemployment in California at 12%, Highest in Nearly 70 Years

GG flagged this: UK Public debt hits £800 billion – the highest on record

Tom B. sent this item: Charts predict: “Risk of Full- Fledged Dollar Crisis”

Items from The Economatrix:

Obama: G-20 Good Time to Assess Economy

Low Expectations for New Loan Help Program

Regulators Seize Two Banks; 94 Failures This Year

Irwin Financial’s Two Bank Units Seized

Ohio Town Struggles After Package Giant DHL Leaves

Meredith Whitney: “Roaring Recover”? Unlikely

Fed Eyes Sweeping Bank-Pay Regulations

Summers: Troubled Firms Should be Allowed to Fail

Obama Adviser Blasts Big Business Ads. Larry Summers, top Obama economist, blasts ad campaign opposing proposal to create agency to protect financial consumers.

Chapman: The Looming Global Debt Crisis

Is the Fed’s Money Pumping Inflationary?

Deflation, Falling Velocity of Money Ensures Printing Presses Will Keep Running

Missing Lehman Lesson of Shakeout Means “Too Big to Fail” Banks May Fail



Odds ‘n Sods:

Inyokern spotted a web page on a 1 oz. beverage can stove which burns denatured alcohol. Inyokern notes: “This is a great bug-out bag item that is popular with Blue Ridge ultralight backpackers. This, plus fishing line, a folding knife, hooks, and a pan or pot with a lid would make a lightweight emergency kit.”

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F.G. sent this: South Carolina mayor prohibits cops from chasing suspects either by car, or on foot!

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J.B. found a piece that describes urban camouflage: the ‘Special Operations Tactical Suit’ (SOTACS)

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Reader A.V. was the first of several to mention a recent Dilbert comic strip.





Letter Re: Will Junk Silver Be Accepted for Barter, Post-Collapse?

I have been reading your blog for quite some time now and I have a different outlook that I would like for you to comment on if you would be so kind. I have seen multiple references to pre-1965 coins being good for barter in a post-SHTF environment, but I do not follow this reasoning. I live in Dallas Texas, and frequently converse with other like minded people about survival preparation and the world climate and, until I told them about the high melt value of pre-1965 coins, they had no idea it was greater than the face value. It should not have struck me as odd as I myself had no idea of this before I began reading your blog. These are well informed people, so it made me wonder how common this knowledge was. I began asking various people about this, and not one person had any idea that these coins had a higher silver value than their face value. Here is my perspective on this subject.

In a post SHTF environment some people will have prepared and some won’t. However, regardless of this, when it comes time to trade with others the universal doctrines will apply. 1. You will have to have something that I want for me to trade you what you want. 2. A think worth what someone is willing to pay for it, not it’s asking price. Now, if the vast majority of people have no idea that pre-1965 coins are almost the same as silver, most of them will likely have no desire for them at all, or worse, think that you are trying to scam them by pushing a trade with a currency which is likely defunct. Further, due to the probable lack of access to information, it is unlikely that people would be able to research the claim that these coins are worth more than their face value. Thereby keeping the populace at large ignorant of their true commodity value, and keeping the coins out of the trading markets.

I believe that the only scenario in which pre-1965 coins could come to be regarded as a barter good would be if people that already knew of their value agreed to take them in as trade for something that the ignorant populace already believed had value, such as ammunition or food. Again, however, there is a very small percentage of the populace that has knowledge of the melt value of pre-1965 coins, much less has a stockpile of them to use after the SHTF. Therefore, I believe it to be unlikely that there would be enough people, in enough varied locations, willing to make a sufficient number of trades of their items for coins for the trend of pre-1965 coinage as a barter good to become ubiquitous in the “villages” or “trading posts”. Due to these perspectives, I find it to be unlike that the new “villages” or “trading posts”, that spring up out of the ashes of our previous society, will use pre-1965 coins as even an uncommon trading good.

Most of the idea behind amassing coins for preparedness I believe to be tied to the value of silver, and the above illustrations assume that silver will be valued after the crash. However, after the crash I do not find it likely that silver will have any value at all for the the majority of the people. Very few people will be so well -prepared that they will have enough that they can concern themselves with amassing hard wealth for when society returns. I am certain that the majority will be trying to just survive as best they can. While there will be a Rolex or a diamond ring traded for a few tins of tuna, this will likely be an uncommon occurrence as society continues to devolve. Few people will have so much that they can trade away usable resources for hard value items in mass. While people may have the memory that silver used to be valuable, after having spent some time circling the drain with the rest of society, it is unlikely that they will have found a use for it since it can neither be used to defend nor feed one’s self. It is more likely that a wealthy man will be one that has enough food, warmth, defense, and shelter to survive indefinitely. That only leave silver coins as an easily identifiable currency.

So, let us suppose that there are places that have almost gotten back to some sense of civilizations, such as the “villages” or “trading posts”. As such they will likely want to use some form of currency. However, as we look to the past to inform the future, it is more likely that each community, or group of communities, will develop their own individual currencies in an effort to avoid counterfeiting and theft. Historically, in the absence of a centralized government, individual communities do what they feel they must to survive and to insure that they function as smoothly as possible. This is likely to focus more on food and defence, items that provide life stability, than it is on amassing hard value items.

In order for silver coins to have a value a person needs to want them from you more than they want to keep what you want from them. I can not see any functionally use for silver after the crash. I know that there are a great many very intelligent people that firmly believe that these coins will have a high value post SHTF, so I feel like I must be missing something. I would be most appreciative if you would share your views on the reasoning that I have outlined. I am very hesitant to invest in pre-1965 coins as a future barter good until I am convinced that it is a better investment than just using the same money to buy more food, guns, or ammunition. The ideal of having a compact, universal, and non-degrading barter good available when the time comes is very appealing, I’m just not sure that it is silver coins. – Russell from Dallas

JWR Replies: I stand by my prediction that in the event of a currency collapse, pre-1965 junk silver will very quickly become adopted as a de facto barter currency. Many people may not presently be familiar with these coins, but once the US Dollar’s value disintegrates, people will wise up to what constitutes real money, very rapidly. Adaptability is in the nature of free markets. It won’t take more than a couple of months for prices to stabilize in the new reality of silver coins, packs of cigarettes, boxes of .22 cartridges, and gallons of gasoline–in barter. I predict that within a month, the sound of ringing silver coins will become familiar–starting first at “mom and pop” stores and at farmer’s markets. These coins will be eagerly sought in barter, because they encapsulate all of the key attributes of a genuine tangible currency: recognizability, scarcity, durability, portability, fungibility, and divisibility. Being 90% silver, they also have useful industrial value. No barter currency is perfect, but pre-1965 coins come very close, at least for use here in the United States.



Letter Re: Storage Food Cookbooks

Hello James;
I was just today shopping at the good ol value village and saw this book called Cooking With Stored Foods by Carlene Tejada and Carroll Latham. It contains great tips on storing foods and cooking stored foods. It lists also the shelf life of stored foods and there are diagrams for gravity fed can storage systems. I got it for ninety nine cents but your readers can find it on amazon.com for as little as $0.67 [plus postage]. God bless and many prayers for the loss of your Memsahib – Eric L

JWR Replies: Thanks for that recommendation. Another book on using storage foods that I consider a must is Making the Best of Basics – Family Preparedness Handbook by James Talmage Stevens. I heard that the 11th edition is about to be released.



Letter Re: Advice for a Post-Thyroidectomy — Potassium Iodide?

Mr. Rawles,
I have read your blog for awhile, I would like to know if you about the following: I was diagnosed with Graves Disease over two years ago. They cured the Graves Disease and the way that was done was to completely remove my thyroid gland, If the main concern with radiation is thyroid cancer, without a thyroid what would radiation do are what organ would it damage the most. I would like to also know if there would be any need for myself to take Potassium Iodide (KI).

JWR Replies: There would be no need for you to take KI, since it only serves to “load” a thyroid gland with iodine and hence prevent the accumulation of radioactive isotopes that would otherwise accumulate there. Beyond that, in terms of “internal emitters”, all that you should remember is to avoid fresh dairy products (since isotopes like Strontium-90 tend to accumulate in milk), and to drink a regular quantity of fluids, to keep your kidneys flushed.

Since you are post-operative, you can jokingly refer to yourself as partially “radiation proof.” (At least you don’t have to worry as much as the rest of us about radioactive iodine isotopes.)

From a preparedness standpoint, you should look into stocking up on your regular hypothyroid (glandular replacement) prescription, (assuming that you have one). Do so as much as possible, up to the maximum shelf life. And of course you should consistently rotate this supply, using the first-in, first-out (FIFO) method.



Influenza Pandemic Update:

From Heather H.: Hand Washing No Defense Against Swine Flu

FDA Approves Vaccines for Swine Flu (But there are lots of doubts about the safety of the vaccine. Do some research before taking the jab!)

H1N1 Brings Early Flu Season to Colleges, Public Schools

Canada anger at ‘flu body bags’ Canada’s health minister orders an inquiry after body bags are sent to aboriginal communities as part of swine flu preparations.



Economics and Investing:

Greg sent us this: FDIC Considers Borrowing From Treasury to Shore Up Deposit Insurance

Chaz liked this one: The U.S. Balance Sheet: Households See Net Worth Down by $12 Trillion Since Peak and Total Debt Floating in the Market of $33 Trillion

Items from The Economatrix:

Housing, Jobless Data Point to a Slow Economic Recovery

Stocks Zigzag After Rally as Jobless Claims Dip

FedEx First Quarter Profits Fall, Sees Improving Economy

Oil Edges Higher on Hints of Economic Improvement

Paul’s “Audit The Fed” Bill One Co-Sponsor Away from Being Veto Proof

A Deluded G-20

Odds ‘n Sods:

Federal Judge Rules Police Cannot Detain People for Openly Carrying Guns — Includes nationwide map linking to open carry laws for each state. (Thanks to Cheryl for the link.)

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Food Stamp List Soars Past 35 Million: USDA

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Mexico Water Shortage Becomes Crisis Amid Drought

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White Paper Examines Role of Agricultural Innovations in Meeting World Food Crisis



Jim’s Quote of the Day:

"Freedoms assumed become freedoms forgotten, freedoms forgotten will become freedoms lost." – Dr. Ergun Caner, President of Liberty Theological Seminary



Notes from JWR:

In answer to those of you that have asked: Please wait until “Book Bomb” Day — September 30th — to place your order for my forthcoming nonfiction book, “How to Survive the End of the World as We Know It: Tactics, Techniques, and Technologies for Uncertain Times”. Dealers won’t be able to ship it until then, anyway. With the Book Bomb event, I hope to drive the book’s sales rank into Amazon’s Top 100, overall. Because of the strength of the pre-orders (even though I’ve asked people to delay ordering!) Penguin Books has increased the size of the first press run order to 20,000 copies. Even the though the book is still more than a week from release, its Amazon Sales Rank is already below #400, overall, out of four million cataloged titles.

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 $350 value.)

Second Prize: A “grab bag” of preparedness gear and books from Jim’s Amazing Secret Bunker of Redundant Redundancy (JASBORR) with a retail value of at least $350.

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

Round 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.



Squeezing Efficiency Out of Every Second of Your Workday to Provide Quality Relaxation Time, by KAF

Yes, I actually said relaxation. Are you finding yourself overwhelmed with chores, or frazzled and just flat out fatigued trying to accomplish everything you must do in a workday on the homestead?

I have recently lost my right arm support on my homestead. As all of you know who are practicing “prepper’s” of self-sufficiency, the Fall season, which by the way is my favorite, is almost equal to that of Spring in the number and intensity of the tasks and chores that must be performed in order to keep your slice of heaven on earth in sequence of the time cycle of Mother Nature. It’s time to close the garden and fields, and plant green fertilizer legumes or over-seed  it with clover for the spring, overwinter and greenhouse enclose any vegetation you intend to keep through the next planting season, fertilize the fruit bearing trees in your orchard and prune back vines, the fruit bearing bramble bushes and your blueberries. Then there is the winter prep for animal housing, feed, mineral and fodder storage for wintering, getting that hay put up into the hay loft from the field, cut and stack cords of firewood, and attend to the fuel stores required that will be used over the long colder days which are approaching in short chronological ordering.

By that loss of support, I mean that my best half of my marriage partnership has unexpectedly been called to work performing medical duty on a base which is unreasonably too far to commute home daily.  Thus, I am winging and carrying out the normal daily chores and tasks which had previously utilized 75% of my available waking hours already in performing productive homestead work. With his absence, I am now electing to pick up the difference of all the seasonal chores as well.  At first, I admit with no shame, I was panicked and overwhelmed at just the thought of undertaking all our homestead chores alone. I prayed as I worked.  Allot. I asked the Lord our God for strength, for physical durability and mental application of my wisdom and knowledge, and for fortitude. I set out on this journey to come up with a written task sheet showing myself exactly what must be done, when, and set realistic expected dates of target completion. What I have learned, and am still learning, with every step and breath I take, is that there are many useless, inefficient steps that we take every single day. We do them over and over because that’s the way we’ve always done them. Or, that’s the way a husband did them who could lift twice what I can, did them. Here are some examples of time and work saving issues I have addressed and corrected so far in this learning and revision process. This has really been a experience of self observation and revision of old work habits. Now I can say, “Yes, it can and will be done.” I have been sole paddling this canoe over and through the rough waters for 4 months now. It was not possible without reworking some old work habits and practices.

The initial first days and weeks I noticed just how many actual footsteps and trips I made going back and forth to the feed containers. It was numerous, a wasteful expenditure of my body energy and time consumptive. I never noticed it before, because there were two of us splitting that energy by half.  I was also doing it in a leisurely manner. I immediately set out to rework the setup of my animal chores from what I observed and learned. The first revision made was physically moving those numerous 32 gallon galvanized containers of different feeds from one central feeding location,  to the external walls next to each of the separate animal housing areas of our dairy goats,  both nanny and bucks, which are separated by paddocks across a large field, and also for our guard dogs pen. This also included the poultry, duck, geese, and guinea fowl pens. We have separate securely penned housing for all the poultry, a “nursery” and their mama’s, due to the annual history of high fowl losses by predation of red foxes, and coons in the Fall.  So, they all get penned up in the late summer and for overwintering. This one revision action has saved me 10 trips back and forth to one central feed location.  I also used individual scoopfuls before for serving up each of corn, scratch grains, and sunflower seeds. I observed the pen floor. All those grains ended up mixed and thrown together by the poultry anyway.  Why was I still scooping grain individually? Revision two, the grain, and seeds, and pellets, all go into one large 5 gallon bucket. One trip.  Completed. Now my extra time is spent in observing the animals and pens for actual or potential problems that I need to address for them.

The poultry watering is obtained by a central well head pump and hose which is 30 feet from the pens in any direction.  Each time I had to untangle a central hose and drag it around the yard to get to the pens. A 100 ft. run of Rubber hose is heavy! I installed a 5 head, split manifold on the spigot with a master shutoff. This now allows me to have numerous shorter hoses, (I cut the 100 footer into three shorter hoses using mending kits) at each pen location.  No more carting 7 gallon waterier containers across the yard. [JWR Adds: For providing livestock water, getting an inexpensive automatic float valve for each livestock tank is a tremendous labor saver. In warm climates these can be used year-round, but in cold climates, you’ll have to remove them for the coldest months to prevent cracking in sub-zero weather.] Next, I installed an overhang shelter to protect each of the feeding stations. It keeps the rain, and snow which sometimes comes in winter off of me, and also shields the open feed containers from the weather while I’m scooping into the buckets. It also has given me an area to hang the tools that I use for each set of animals and I can keep a reserve bale of hay there as well. This saves me numerous trips and energy going back and forth to the barn. I installed a T-post pole mounted liquid soap dispenser at each of our watering locations. They used to be attached on the outbuildings. I attached a short hose extension to one of the vacant manifold outlets with a shutoff switch. This is used only for hand washing.

I observed and made instant mental note, as to how many footsteps I was taking to avoid or sidestep an object, large rock, or bush in the field or paddocks, or how many times I tripped over that same old stump sitting out the ground. Or, how many times I needed to open and close a gate latch. All of these can be revised or removed. I had the stumps ground. I moved field hay feeders closer to the fence, same with mineral blocks. I took out bushes.

The examples of revisions I have made toward a more efficient workplace are numerous and too many to list here. I hope you get the gist of this message in this process, so you can observe and create your own revisions of inefficient work habits or routines.  It is truly an ongoing process and perpetual and continually refined and never static, toward an end goal target of your homestead efficiency success. Keenly observe what you do with your energy and time. Make each and every step you take count toward productivity and efficiency of both your physical energy and time expenditure, and you will find that you will get everything you must get done completed. After four months of reworking some old habits, practices, and farmstead layouts, we now have quality time left for us.  When hubby does get to come home for a long 3 or 4 day stretch off in his schedule, we do some quality enjoyment functions and enjoy some relaxation together, or we tackle a planned project that absolutely requires two efficiently operating people to get it done.

Remember, and honor what the Lord God said, Genesis 2:2, “And on the seventh day God ended his work which he had made; and he rested on the seventh day from all his work which he had made”.

Rest and Relaxation is the reward for all your hard earned work. Make plans for that rest as well as your work. May you all have a God Blessed and Happy Fall season!



Economics and Investing:

“Option” mortgages to explode, officials warn. (This is not a news flash for SurvivalBlog readers–I first warned you about this in March of ’07, and several times since.) A picture is worth a thousand words. BTW, I have found that this chart link is very useful to send to any deluded relatives who have bought into the lie that the real estate market has “bottomed” and that are planning to buy back into the market. US residential real estate is presently a playground for idiotic contrapreneurs. The very earliest that real estate could turn around in the US is 2013, and I actually expect it to be much later than that!

GG alerted us to Mish Shedlock’s highlighting ‘Black Swan’ Taleb’s frank comments on Bernanke and Summers

Garnet and Cheryl both mentioned the story of how one family got out of debt.

Items from The Economatrix:

Stalled Economy Will Take Years to Regain Speed

We Still Have the Same Disease

More Taxes — Of Course! (The Mogambo Guru)

Where We Are on the Laffer Curve

Greenspan Sees Threat US Congress Will Hamper Fed

UN Calls For Replacement of US Dollar


Is Your Bank “Underwater”? Check its Debt Level


UCLA Report Sees Little or No Growth in California

Buffett Says US Economy Has Not Turned Up Yet (but last year’s terror is gone)



Odds ‘n Sods:

Michael Z. Williamson, SurvivalBlog’s Editor at Large, sent a link to a fascinating web page about vehicular Cuban boat people. Talk about improvisation and ingenuity!

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FG sent a sixteen-second long YouTube video that shows the level of firearms competence that a 13 year-old girl is capable of. (The pinging noises are hits.) Are your teenagers her equal? If not, then get them to the range more often, and schedule some training!

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Frequent content contributor FG sent this news of “Clunkers” program that I agree with: Purchase a new SIG-Sauer P220, P226, P229, 1911, SIG556 pistol, or SIG556 rifle from your dealer’s inventory before November 30th, 2009, and SIG-Sauer will give you $200 for your old “Klunker” pistol or revolver.





Note from JWR:

Today’s entry is brief, as we prepare for a small family memorial gathering to honor the life of my late wife Linda (“The Memsahib”) who passed away last weekend. My sincere thanks to the 40+ readers that have made Linda Rawles Memorial Fund contributions to benefit the Anchor Orphanage and School in Zambia. (Linda’s favorite charity.) God bless you!