Retreat Owner Profile: Mr. Romeo

Retreat: Live-aboard 30-Foot Sailboat

Age: One male 34 years old

Background: Grew up in small town next to Vandenberg Air Force Base, watching missiles being launched and sometimes blown up [“flight terminated”] over the ocean. I always knew that seeing one missile being launched meant “test” and that two or more mean “imminent death”. Grew up with most “toys” being bought at army surplus stores. My brother and I were the only kids who when we played “war” dressed in full army gear, complete with combat boots, helmet with outer cloth cover stuffed with branches, belt with two canteens, belt back pack, shovel, ammo cases, full camo clothes…the list goes on and on.

I moved to a southern California harbor 40 miles from Santa Cruz Island about two years ago to be closer to work (and distance myself from the nuke magnet–Vandenberg AFB). I have been getting everything on the boat ship shape for last two years. I have also been buying survival gear suited for an ocean retreat WTSHTF.

Annual Income: Was $46,000 a year until I got laid off three months ago.

Investments: So far 30 grams Pamp Suisse bullion, survival gear, food stores

Present Home: 30 foot Catalina Sloop sailboat that was but in the 1970s. I have upgraded the rear stern rails to ones with incorporated rear seats, repaired both sails, replaced the lifelines, replaced all essential lighting with solar powered LED lighting and have kerosene backup lighting in every berth. I also have solar powered exterior lighting.

For entertainment I have an XPower solar power pack that will charge my Creative Zen and portable DVD player starting from dead batteries with a one day charge on the power pack. That gives me 3-4 hours of DVDs and 11-12 hours of MP3 music a day, every day [for pennies in the lifetime cost of the system]. I have spare new batteries for all three units in the boat. Since I live aboard I am tax exempt and only pay $45 USD every two years for craft registration. I also have to pay $20 USD once a year to have harbor patrol give me a live aboard safety inspection. Insurance is $400 a year.

Vehicles: I have a 2005 Tank Urban Sporty 150cc scooter made out of chineseum and a 1999 Honda civic LEV (low emissions vehicle), they cost about $120 USD a year for registration and about $600 a year to insure with the minimum required by law. The scooter gets about 60-to 80 mpg and the Civic gets 30-38 mpg but I mostly ride the scooter.

Firearms: Winchester 12 gauge semi auto with 300+ rounds of birdshot (also have bandoleer that holds 50 rounds). Compound bow and arrows. Flare gun and 10 flares. About 60 yards cheap floating rope. (This is a defensive weapon) to foul the props of any would be attacking boats Just cut it into 10 foot strips and throw into water. I also have a machete, an axe, a Blackie Collins design Gerber clip lock serrated knife as well as about 30 other (various) knives.

Gardens/Orchards/Food source: What’s the biggest highway in the world that is full of food? The ocean, it is also the biggest moat in the world.

Property Tax: None.

Communications: VHF radio handheld and onboard units for emergency use, cell phone for domestic calls.

Food Storage: 50 pounds of rice, large supply of canned ham, large supply of canned food, I have also stored a lot of extra salt and cooking oil onboard for bartering purposes. I have room to store 20 gallons water built into the boat and have room for about 50 more gallons in storage.

Fuel Storage: 20 gallon tank built into the boat, five gallon tank in the dinghy and 5-1 gallon tanks under the cockpit seats.

Survival gear: Propane barbeque with extra canisters of LP, PUR Survivor 06-LL Desalinator Watermaker, 400 count 65 mg potassium iodide tablets sealed in factory bottles, solar lighting inside and out, solar fan that I made that works day and night.

Two fishing poles and assorted fishing tackle, Sailrite lsz-1 sail and canvas sewing machine with heavy duty stainless steel hand crank for use offshore. And of course the assorted tools needed to keep the boat working.

Worst Case Scenario: Economic collapse, nuclear war, Waterworld, tsunami, civil unrest, corrupt government declaring martial law, you name it. I am just a power cord and four dock lines from New Zealand via Hawaii or Baja California to Mexico. The thin veneer that holds “civilized” society from becoming something like the Rodney King riots is not as thick as you might think. Like a castle with a large moat, like an island or an oil rig is how I plan to bug out. Since owning the sailboat I have traveled over 400 miles in five trips to the islands and in that time I’ve used perhaps one gallon of gas.
Blow ships are the cat’s meow when it comes to efficiency. Top sailing speed (so far) 9.4 knots under full main and 120% jib.

JWR’s Recommends: Increase your food storage! Buy as much as can possibly fit in the space available. You should also increase your solar charging capacity so that you can keep your deep cycle batteries (for VHF radio, navigation, and cell phone charging, et cetera) topped off, even without running your auxiliary engine.

For defense, first buy 50 rifled slugs and at least 100 buckshot 12 gauge shells (000 is the best pellet size for shipboard defense.) You should then add a scoped stainless steel .308 or .30-06 bolt action rifle for “stand-off” self defense against pirates. (A stainless steel Browning A-Bolt with a half dozen spare magazines would be ideal. Second choice would be a Winchester Model 70 Classic Stainless.) Buy at least 500 rounds of .30 caliber ammunition–a mix of AP, ball (FMJ), and soft nose. BTW, it is too bad that you can’t buy tracer ammo in California. If you lay down accurate fire with AP ammo at 450 yards, pirates will go find someone else to pick on! I also recommend that you add an intrusion detection system to your deck, to alert you if anyone attempts to board your sailboat when you are berthed or anchored at night. Also, if your budget allows, buy at least six large white parachute flares, so that you can engage targets with your rifle at night. And if you can afford it, also get a headset-type night vision monocular, such as an AN/PVS-7B. Get firearms and medical training as soon as you can afford them. (Low-cost training is available from the American Red Cross, the Appleseed Program, and the WRSA.)

Buy a spare membrane and any other key spare parts for your desalinator. I recommend that you get as much blue water sailing experience as possible Since you’ve been laid off, it could be a great opportunity. You might try networking to find a trans-pac yacht crew/security position. (Check Craig’s List and CrewFile.com for openings.)

Odds ‘n Sods:

Reader MGB recommended this brief but insightful page on outdoor survival: Survival Myths… Debunked

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Hawaiian K. sent us a link to a New York Times piece that made my blood boil. It is innocuously titled: So When Will Banks Give Loans? But it would have been better titled: Your Tax Dollars at Work: Expanding a Banking Empire. Read the article carefully. The banksters at JP Morgan Chase plan to spend $25 billion of gifted taxpayer dollars to fund acquisitions of smaller banks.

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I just heard that Ready Made Resources now has a small quantity of used water-tight Hardigg cases available, for just $39.95 plus shipping. These have great potential for caching guns in damp climate regions. These cases are full military specification, and highly recommended. Buy a few before they run out!

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I spotted this at The Drudge Report: Companies start competing for bailout money

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More from Cheryl: Congress: What Ben And Hank Aren’t Telling You — Taiwan Dumps Fannie & Freddie — Survival: Learn From Argentina’s Collapse — Thousands Of Hedge Funds On The Brink Of Failure — Car Makers Slam On Brakes As Orders Drop — Citadel Admits 35% Dive In Hedge Fund Value

Jim’s Quote of the Day:

“Using a television without an appropriate licence is a criminal offence. Every day we catch an average of 1,200 people using a TV without a licence. There is no valid excuse for using a television and not having a TV Licence, but some people still try – sometimes with the most ridiculous stories ever heard. Our detection equipment will track down your TV. The fact that our enquiry officers are now so well equipped with the latest technology means that there is virtually no way to avoid detection.” – from the official website of the British Television Licensing Authority, May 2003

Notes from JWR:

The high bid in the current SurvivalBlog Benefit Auction is now at $560. This auction is for a mixed lot that includes:

1.) A huge lot of DVDs, CD-ROMs and hard copy nuclear survival/self-sufficiency references (a $300+ value) donated by Richard Fleetwood of www.SurvivalCD.com

2.) A custom-made, fully-stocked EMS Medic Bag from Cajun Safety and Survival (a $212 retail value)

3.) A NukAlert radiation detector donated by at KI4U.com (a $160 retail value)

4.) A case (6 cans) of Mountain House freeze dried foods in #10 (96 ounce) cans donated by Ready Made Resources (a $160 value)

5.) An autographed copy of “Patriots: Surviving the Coming Collapse” ($24, retail)

See the SurvivalBlog Benefit Auction page for complete details on these items. This auction ends on November 15th. The opening bid is just $50. Please e-mail us your bid.

Today, with permission, we present a guest editorial by Steve Saville of The Speculative Investor:

The Financial Crisis Will Soon Abate, But The Real Crisis Will Soon Begin, by Steve Saville

In an essay first published in 1969 and recently re-published, Murray Rothbard summarizes the causes and cures of economic depressions by drawing on the Business Cycle theory developed by the great Austrian economist Ludwig von Mises. Here’s an excerpt from this essay:

“Mises, then, pinpoints the blame for the cycle on inflationary bank credit expansion propelled by the intervention of government and its central bank. What does Mises say should be done, say by government, once the depression arrives? What is the governmental role in the cure of depression? In the first place, government must cease inflating as soon as possible. It is true that this will, inevitably, bring the inflationary boom abruptly to an end, and commence the inevitable recession or depression. But the longer the government waits for this, the worse the necessary readjustments will have to be. The sooner the depression-readjustment is gotten over with, the better.

This means, also, that the government must never try to prop up unsound business situations; it must never bail out or lend money to business firms in trouble. Doing this will simply prolong the agony and convert a sharp and quick depression phase into a lingering and chronic disease. The government must never try to prop up wage rates or prices of producers’ goods; doing so will prolong and delay indefinitely the completion of the depression-adjustment process; it will cause indefinite and prolonged depression and mass unemployment in the vital capital goods industries. The government must not try to inflate again, in order to get out of the depression. For even if this re-inflation succeeds, it will only sow greater trouble later on. The government must do nothing to encourage consumption, and it must not increase its own expenditures, for this will further increase the social consumption/investment ratio. In fact, cutting the government budget will improve the ratio. What the economy needs is not more consumption spending but more saving, in order to validate some of the excessive investments of the boom. [Emphasis added]

Thus, what the government should do, according to the Misesian analysis of the depression, is absolutely nothing. It should, from the point of view of economic health and ending the depression as quickly as possible, maintain a strict hands off, “laissez-faire” policy. Anything it does will delay and obstruct the adjustment process of the market; the less it does, the more rapidly will the market adjustment process do its work, and sound economic recovery ensue.”

Clearly, in response to the current financial crisis the US government — and most other governments, for that matter — is doing exactly what Mises and other great economists of the “Austrian School” claim should not be done. Specifically, the US government is trying to prop up unsound business situations; it is bailing out and lending money to business firms in trouble; it is attempting to prop up prices; it is trying to inflate again in order to boost the economy; and it is rapidly increasing its own expenditures.

The “Austrians” have considerable credibility because their basic theories have never been logically refuted and have been validated, time and time again, by real world occurrences. For example, in early 1929 the two leading Austrian economists of the day, Mises and Hayek, predicted that a great crash was about to occur. Mises, at the time, turned down a prestigious job with a bank because he foresaw a global banking crisis and did not want his name associated with any bank. After the crash the Austrians then warned that the large increases in spending and the various other government interventions implemented in order to stimulate the economy would turn a financial collapse into a very lengthy depression. They were again proven right. As an aside, it is often stated, as if it were a fact, that President Hoover employed a hands-off approach in response to the financial collapse of 1929-1932, thus sowing the seeds of the drawn-out depression that followed. However, nothing could be further from the truth. The fact is that Hoover was not a true believer in free markets and in response to the crash he ramped up the US Government’s involvement in the economy, so much so that during the 1932 Presidential election campaign Hoover was labeled a “spendthrift” by FDR, his opponent. Of course, the 16% increase in government indebtedness on Hoover’s watch during 1931-1932 now looks miserly compared to the 1,200% increase in Federal debt presided over by Roosevelt during 1933-1945, but at the time it was one of the largest peace-time increases ever.

There were many financial crises in the US prior to the 1930s. The main factor that differentiated the 1930s from earlier periods of crisis — the thing that transformed a financial collapse into an economic depression lasting more than a decade — was the government’s response to the crisis. Never before had the government tried so hard to fight the contraction by ramping up its own spending, and never before had the US economy performed so poorly. Strangely, most economists seem incapable of linking the dismal economic performance with the large increase in government intervention, and, as a result, most economists still think that increased government intervention and spending is the answer (although they often disagree on the details). The Japanese thought it was the answer during the 1990s, and thus managed to transform what should have been a sharp 1-3 year adjustment into a 10-15 year period of economic stagnation. And now it’s widely considered to be the appropriate response to the current woes in the US.

Given that it is being ‘egged on’ by high-profile economists, investors, hedge-fund managers, businessmen, journalists, television personalities, politicians and even newsletter writers of almost all stripes, it’s a virtual certainty that the US government will continue to ‘fight’ the current crisis by implementing inflationary policies and inserting itself ever-deeper into the fabric of the economy. In fact, it is now rare for a week to go by without the announcement of some new large-scale government intervention. This week’s main intervention — to date, anyway, but there are still three days left in the week — is the decision of the Fed/Treasury combination to provide an unlimited amount of short-term funding to non-financial companies via the Commercial Paper market.

The world’s financial markets are embroiled in a crisis of epic proportions, but with or without government ‘help’ the financial crisis will soon become less intense. Perhaps the many actions being taken by the government in an effort to ‘soften the blow’ will cause the immediate crisis to dissipate earlier than would otherwise be the case, but these actions will certainly do longer-term damage by siphoning real savings into non-productive endeavours. Always bear in mind that the government doesn’t have any real savings of its own, so the only way the government can help an unhealthy corporation is to divert savings away from healthy corporations. This diversion often occurs via inflation (increasing the money supply), and is therefore unseen by most observers.

We can’t say for certain that the actions being taken to counteract the financial crisis will lead to a drawn-out economic depression, but we can say that the actions greatly increase the risk of such an outcome. Furthermore, we can say that similar policy moves have, in the past, been followed by drawn-out economic depressions.

Further to the above, we think it makes sense to prepare for a very lengthy period of slow, or no, economic growth. In general terms, this should involve strengthening one’s balance sheet. More specifically, it should involve staying (or getting) out of debt and could involve building up exposure to gold and income-producing investments other than bonds (energy trusts, for instance). Fortunately, a good balance-sheet-strengthening opportunity is likely to present itself over the next six months because the immediate crisis will probably soon give way to a multi-month stock market rebound and the illusion that policy-makers have managed to ignite a sustainable recovery.

Regular financial market forecasts and analyses are provided at The Speculative Investor (A paid subscription service. Free samples are available.)

Letter Re: Salt and Other Key Items to Store for Barter

Mr. Rawles:
I recently stocked the salt supply to the point that I have barter material, purchasing salt for under a penny an ounce. That is a pretty good investment, if you ask me. I purchased four 25 lb. bags @ $3.99 each. Salt is going for between two and three cents an ounce in the supermarkets, but a local restaurant supplier had the bags on the bottom shelf. I will get more the next time I am there. And while I was on the salt kick, I got my first salt block for my supply, and also picked up two of the ten pound blocks to stash for…yep, barter.

Also, after canning several batches of butter and margarine, I realized that this is something that most people will not have. It is very cost-prohibitive for the average bargain hunting prepper to buy the canned butter, but at 59 cents a pound, margarine is cheap. It cans beautifully, and the shelf life is about two years, with some going longer. I am canning some in the 4 oz. jars for ease of barter. If you have the room to store it, it is a great item to have on hand! Let’s face it, a pat of margarine goes a long way to a semblance of normalcy! Not a necessity by any means, but so nice on that cornbread or hot yeast bread! Directions for this process are all over the net, and many sites have pictures. It is actually fun to do, and takes no special equipment.

I also have been buying all the over the counter medications that I can get on clearance, knowing that these items will be in big demand. Just because the store can’t sell it doesn’t mean it isn’t good. Think about it. How can they keep us buying if they tell us the real shelf lives of these products?? It may lose a bit of potency, but it is still good.

I never go into a store without checking the clearance aisle. Spices, medications, first aid, and toiletries are often there, and cheap. I can get them at a pittance. I also make a game of the advertised specials, looking for the real deals, the “loss leaders” [a retail item that is sold at cost or even below cost to attract customers.] If it isn’t 50% off, it isn’t a good sale!

Even with the strict rules for stocking, I have to get creative now with storage. Prepping can be done, on a budget, without breaking the bank. And it can also yield the items that will barter our way into what we don’t have. By stocking when the sales occur, and using from our stock for the everyday items, the money goes so much further. Even if the Schumer never hits the fan, this is a way of living that makes sense, provides physical and emotional security, and stretches those pennies to the maximum.

I would rather have it and not need it, than need it and not have it! – Sparky

JWR Replies: Salt will indeed be a crucial barter item, especially in inland areas.

When planning for barter, consider container size. For salt, a one pound paper canister, while somewhat inefficient use of storage space is the ideal size for barter. My advice: Store your own family salt supply in bulk, but your barter stock in small and convenient containers.

In addition to planning fri cooking and food preservation, you should store lots of salt for attracting big game.As I’ve written before: After TEOTWAWKI, you shouldn’t “go hunting.” That would be a waste of effort. Have the game come to you. If you have the storage space, buy 20 or more large (50-pound) salt blocks. These will also make very valuable barter items, for your neighbors that most likely won’t plan ahead as well as you.

Odds ‘n Sods:

Searching for an article on how to more quickly and effectively sharpen a chainsaw (mine always seems to be a rock magnet), I found a great article in Backwoods Home magazine: Ambidextrous chainsaw filing. (BTW, be sure to look through their big on-line archive of other free articles.) I also strongly recommend subscribing to Backwoods Home. It is one of our family’s perennial favorites!

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The latest harvest from our Economic Editor: Stocks Fall On Belief Global Recession Is At Hand — 25% to 30% of Hedge Funds To Disappear — Crude Oil and Gas Prices Tumble To Lowest In A Year — Dow Expected To Dive To 5,000 In 2009 — London Market Losses Worsen — Asian Stock Markets Slide Further — Russian Financial Crisis Deepens — US Mulls New ‘Bailout’ — Impact Of Recession Spreads — S&P 500, Dow, Nasdaq Futures Reach ‘Limit Down’ Level — Tokyo, Seoul Head Asian Market Train Wreck — US Dollar Death Dance — The Economy’s Next Bogey: Consumer Belt-Tightening — Another Painful Week In The Markets — Wall Street Halts Futures Trading Amid Panic — Dow Slides 312 Points On 79th Anniversary Of Crash — BoE: Worst Financial Crisis In Human History

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“Nines” sent us this: Another Friday, Another Bank Collapse

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Susan Z. flagged a Yahoo piece: Global Economic Crisis: What the November 15 Summit Is Really About

Note from JWR:

Today we present another Retreat Owner Profile, which will soon be added to the Profiles static page. BTW, we still have room for several more international profiles (outside the US). I am saving the last few slots in the US profiles section for people that have very unusual home/retreats. Perhaps someone that lives in an underground house, or someone that lives aboard a houseboat. If you decide to e-mail us your Profile, please closely follow the same format used in the the others. For your privacy, be sure change enough details so that your neighbors won’t recognize you. (You can even change the locale to another state with a similar climate).

Retreat Owner Profile: Mr. and Mrs. Dulce in Chile

70+ acre Chilean Retreat, plus a 1,500 acre cattle grazing permit.

Ages: 43 and 41, and one child age 3

Background: Family is from upstate New York, dairy farmers. I grew up in NC, history major who went into the Army as an aviator. Spent time living, travelling, and working in over 50 countries. Separated from the army as a Major and went into investments. Retired to Chile in the 2000s.

Why Chile? – Chile is the best kept secret in the world. A strong democratic country with five major political parties, Chile is very stable. Chile has lived thru the tough times when a communist leaning government threw the country into chaos, and a military government took control to restore things. Chile has seen what social disorder can do to a country, and that memory influences the country today. The country runs a budget surplus (Chile is the world’s largest producer of copper), has privatized social security accounts for each citizen, uses its resources very conservatively, and has the lowest level of poverty in Central and South America. Chile uses its budget surplus to fund its social programs, and also has a large slush fund to weather any economic storms. The privatized social security has made everyone a capitalist, even the socialists, so irresponsible spending is not tolerated by the populace.

The climate of Chile varies, because the country is 4,500 kilometers long, but only about 220 kilometers wide. The best description is Chile’s climate is “Baja to Alaska”, a mirror image of the western US. I live in the lakes district, which is the bread basket of Chile- a rolling hills farm area with many lakes/ rivers, large farms, and few people. Lots of rain in the winter and sun in the summer. Similar to Oregon or Washington. Chile only has 15 million people. Chile’s main roads are toll roads- the country bases its systems on a user tax. Why should an individual with no car/transport be taxed for interstates? In Chile, the tolls support the roads, the taxes are low. Local roads are not toll roads, just the interstates. It’s a nice system.

Annual Income: $10,000-$20,000. One can live well on $1,000 a month.

Investments: Gold and silver, outside the US.

Present Home: A 1,100 sq. ft. cabin. 2 bedroom, 1 bath. I took down a 60-year old cabin board by board to reuse as much of the old wood as possible. Rebuilt large post beam construction, very good insulation, wood stove heat, natural gas cooking and hot water. Also have a large barn that includes three horse stalls, hayloft, workshop/tack room and storage area. There is a woodshed/ laundry room outside. Water is gravity-fed year-round from a reservoir above my cabin. Underground pipes, so we have good water pressure. Electricity is buried cable- no power lines are visible. The place is wired for a diesel generator.

Vehicles: 2001 Toyota Hilux 4×4, gas. Vehicle taxes are about $75 a year, includes mandatory insurance. Vehicles require an road worthy inspection each year- $26. Gas in Chile is expensive – Chile has no native oil or natural gas. Fuel must be imported from Argentina, so gas is about $5 a gallon. Oil is also expensive- about $26 for the cheapest oil change. Chile’s one weakness is lack of fossil fuels.

Firearms: Mossberg 12 gauge, Winchester .44-40 lever-action made in 1898. Chile has good gun laws. Each individual can register 2 or 3. You need to pass a licensing course and register the weapons with the local army unit, but most people don’t. Chile’s laws are much like the US used to be. If you kill someone in self defense- no problem, no hassle. On your property, no problem. Example: We had a good employee that it turns out the police had been looking for. He had returned to his house one night and found some folks trying to burn down his father’s barn. He tried to stop them and got stabbed. Well, later that month he tracked down the attacker and shot him dead. The Police said it was warranted, a form of self defense since the attacker was a bad seed, they just wanted our employee to finish signing the paperwork/statement, then they let him walk! Common sense in a civil system.

Gardens/Orchards: 30 producing cherry trees. Two apple, three plum, two pear, one walnut. There is a very large avellano tree orchard. Multiple new fruit trees planted. 1/2 acre garden growing onions, lettuce, carrots, beets, corn, beans, cabbage, potatoes, pumpkin, goose-berry, red current, raspberries, and strawberries. Oh, and trying grapes this year- hope to get some wine down the road. Will build a greenhouse this summer to continue winter production.

Property tax: None. My property is too small. I love this country!

Pets/Livestock: One Dogo Argentino (great hunting dog), 2 horses. 40 head of cattle. Will raise hogs and bees for honey this summer.

Communications: Cell phone for emergency use, satellite direct TV, high speed internet.

Food Storage: Hard plastic waterproof containers. Do not have a long term supply built up yet. We usually have a few months on hand of apples, nuts when we harvest. Rice. One reason I moved here was because you could be self supporting, and we are in an agricultural area where we trade fence posts (I have a lot of wood) for hay, and expect to do the same with foodstuffs if needed. We will have chickens, and the property has plentiful wild boar and hares for hunting, along with partridge and dove, and there are nice trout in the river 1 km away.

Fuel Storage: 55 gallon drums, 20 liter containers for chain oil and mixing oil for the chainsaws.

Worst Case Scenario: The global depression takes away my English Premier League soccer matches on Direct TV! No, Chile should be good no matter what happens. Most folks still work hard with physical skills, are not spoiled, and don’t feel entitled. I am blessed that my wife was the daughter of a border policeman, her survival skills are much better than mine, and our livelihood is based on firewood, not electricity, so we can do pretty well. We only go to town once a week, could easily cut that down to once a month or never if need be. We fill up gas once every two months, so our rural and very healthy lifestyle is prepared for anything. And I can always ride my horses to town or around the lake to trade with my neighbors.

Another benefit for the country of Chile is that the weather comes from the South Pacific- the closet country to us that direction is New Zealand. Chile is not on any prominent wind streams that could bring nuclear or biological fallout. Chile has no real threats or enemies and the country has the best trained military in Central or South America (Not a large military, but Chile still has a mandatory draft and trains 200,000 citizens each year for a 12 or 18 month service. Chile’s military heritage is Prussian and since everyone serves at some point, the populace is well disciplined compared to most nations). Chile is bordered on the north by the driest desert in the world, on the east by the Andes, the Antarctic on the south and the pacific ocean on the west, so Chile is very well defended against entry from disease/plague/etc. Come to Chile! Life is good!

Three Letters Re: The Savvy Barterer

Hi Jim:
That first paragraph touched a nerve, because it was so truthful for me. My senior year in college everybody went to Ft. Liquordale. I went to Marrakech. Amazing experience. And boy did I get burned on some of the things I bought there. Some by as much as 1,000%. But the learning experience I came away with was priceless.

The negotiation skills I learned there have become by far my most valuable business tool. That experience really made me think. On one hobby web site where I have collected much feedback my favorite one of all is “He exhibited finely honed buying and selling skills: a pleasure to do business with.” There is so much to bartering, selling, and buying skills. Part of it is even some poker skills.

For the most part we in America consider haggling painful and want it over with as quickly as possible. People over there (in Marrakech) have all day to barter. I think to myself, “It’s my money, I earned it. Why don’t I follow their example and try my very best to get something at the lowest price and see what kind of game we can play to save some dough.” Make it a game and it naturally makes people interested because of competition. But winning the game and letting them make a small profit was the part that I enjoyed.

Yes, sometimes it is majoring in the minors. I don’t have 15 minutes to haggle over a half a kilo of dates, but knowing the real price something should cost hastens the process. I came back home a changed person and used my newfound skills to make and save some real money here at home. When I buy a used item off, say craigslist, I don’t simply make an offer out of thin air. I provide a rational, believable, supportable argument why I am offering what I am offering and why the seller should accept my offer.

Cash is king right now. Not enough people have it, and many desire it more than they desire their toys. One should remember that he who has the cash, now has what everybody wants. If you won’t sell it to me at the price I am offering: I’ll just keep looking. And then they think you might just be the last guy who comes offering them some cash and often you get what you are after.

People just need to slow down the process. I personally like to get off topic. Ask some roundabout personal background questions in friendly way. You can get some valuable insight into whether someone is being truthful or not. Sometimes based upon those answers I choose not to even bother to make an offer. But I am always polite, and respectful. Barter and haggling need not be unfriendly or acrimonious. I usually have more respect for someone who tries: much like respecting your adversary.

I never show too much interest, and make it known I am looking at other similar items elsewhere. Make a point of examining faults quietly, not to annoy the buyer but simply to show those faults are mutually acknowledged.

One of the most valuable things I learned in Marrakech was never offer a price. Work your way down, but don’t offer a price unless you must, toward the end of the game. But, offering a price there is something you must follow thru on. Walking away from an offer you made is very bad form and considered shameful. Here in the US you almost always offer a price on the low end: from a point where you can’t get hurt. Often times I will start negotiations on the phone. But I always ask the seller for his price. Never make an offer before you ask the seller for his price. I have been amazed the few times in my life where I bit my lip and asked the seller for a price, and got one that was far below what I was going to offer for it. Pleasant surprise indeed, and then you can even negotiate downwards from that point. You will get a better price from someone who realizes you are educated in their ways of haggling and you will get to that price quicker.

When I have occasionally dealt with people here in the US who were from North Africa: I usually sense they feel we are fools. Fools in the sense we spend money too easily, to fast, on impulse. We rush one of the most important facets of business. Haggling is a skill most our brethren need to brush up on. Who says you have to spend your money today?

Hope the insight is of some value. I appreciate your work very much. – John E.

 

Greetings from the Foothills of Maine:
Bartering truly is the greatest sport and a New England national pastime. I’d rather barter than eat. Most folks I know would. I learned to bargain early from a farmer father who was a rather fine trader.

Here’s a tip for our new traders: I’ve never encountered a fellow who wouldn’t take a chance. You see, sometimes a fellow would have accepted my last offer if it weren’t for the “giving in.” Everyone likes to think they have the last word. So somebody pulls a quarter out. If I win he takes my price. If he wins the toss, I take his price. (Which I have already decided I would pay, but I don’t want to give in either and let him have the last word.) It’s all about the dance. I know people who won’t trade unless they haggle-dance first. It’s a contest, a game, a sport — so to speak. I call heads because a quarter goes heads more times than tails. (It’s slightly more likely than tails on a quarter.) I win, he frowns, we all have a good laugh. I pay him, load my goods, and leave. I’ll be welcome back to deal with him in the future, but I’ll won’t be able to use the “flip” again. He won’t remember most of his customers, but he’ll remember me and the “flip.” – CC in Maine

 

Dear Jim:
Great article on bartering. Here is an inexpensive pocket weight scale I found. With this scale, some calipers, and a good reference you can check coin weight, thickness and diameter to verify authenticity to specifications for coins not covered by the Fisch Instruments gauges.
Regards, OSOM

Odds ‘n Sods:

Thanks to Mike C. for this article from Forbes: Abandoned Mine Exploration

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More Sturm und Drang from Cheryl: Fiscal Cat 5 Hurricane Warning — Asian Markets Drop — Dollar Roars Back As Global Debts Are Called In — UK Recession Fears Sparks Massive Sell-Off Of Sterling — Global Bank Lending Sinks To 30-Year Low — Demand For Gold Soars As Prices Tumble — World Markets On Edge — Credit Suisse Reports 670M Pound Loss — Nikkei Hits 5-1/2-Year Low — Wachovia Has $23.9 Billion 3Q Loss — Credit Crisis A Catastrophe For Auto Sales

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Eric sent us a link to a Root Cellar Food Storage Chart.

Jim’s Quote of the Day:

"If we find our government in all its branches rushing headlong… into the arms of monarchy, if we find them violating our dearest rights, the trial by jury, the freedom of the press, the freedom of opinion, civil or religious, or opening on our peace of mind or personal safety the sluices of terrorism, if we see them raising standing armies, when the absence of all other danger points to these as the sole objects on which they are to be employed, then indeed let us withdraw and call the nation to its tents. But while our functionaries are wise, and honest, and vigilant, let us move compactly under their guidance, and we have nothing to fear. Things may here and there go a little wrong. It is not in their power to prevent it. But all will be right in the end, though not perhaps by the shortest means." – Thomas Jefferson to William Duane, 1811. ME 13:29

Note from JWR:

Welcome to the thousands of new SurvivalBlog readers who’ve arrived after yesterday’s prominent mention of SurvivalBLog.com on MSNBC.The same mention also pushed up the Amazon sales rank of my novel “Patriots: Surviving the Coming Collapse” to around #800. (Out of more than two million books listed. Not bad for a novel that has been in print for 11 years!)

OBTW, I’ve been getting dozens of e-mails from SurvivalBlog newbies, asking very familiar questions, such as: “What’s the safest area to relocate to?”, “How do I store rice to protect it from vermin?”, “What are the best things to keep on hand for barter?”, and “How can insulin be stored without grid power?” I recommend that new readers take full advantage of the SurvivalBlog Search box (at the top of the right-hand bar) as well as the numerous static topic pages that are easily accessed using the buttons at the top of our main page. Read the “About” and “Precepts” pages first. After that you might n reading through some of the “Retreat Owner Profiles” and my “Recommended Retreat Areas” pages.

 

The high bid in the current SurvivalBlog Benefit Auction is now at $535. This auction is for a mixed lot that includes:

1.) A huge lot of DVDs, CD-ROMs and hard copy nuclear survival/self-sufficiency references (a $300+ value) donated by Richard Fleetwood of www.SurvivalCD.com

2.) A custom-made, fully-stocked EMS Medic Bag from Cajun Safety and Survival (a $212 retail value)

3.) A NukAlert radiation detector donated by at KI4U.com (a $160 retail value)

4.) A case (6 cans) of Mountain House freeze dried foods in #10 (96 ounce) cans donated by Ready Made Resources (a $160 value)

5.) An autographed copy of “Patriots: Surviving the Coming Collapse” ($24, retail)

See the SurvivalBlog Benefit Auction page for complete details on these items. This auction ends on November 15th. Please e-mail us your bid.

The Savvy Barterer–References, Skills, and Tools for TEOTWAWKI Barter

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One of my long-standing Precepts is that every prepared individual should be ready for both barter and dispensing charity. Today, I’ll be briefly discussing barter. Being ready to barter is not just a matter of having a pile of “stuff” to barter. While barter and charity logistics are important, what is even more important is what is between your ears.

A Bazaar Experience

Bartering takes practice. Dickering is an acquired skill. Short of buying yourself a plane ticket to Marrakech, I suggest that you start attending gun shows, garage sales, and flea markets. Learn how to haggle.

One of my long standing Rawlesian Precepts is having the skills and material acquired to conduct barter in a post-collapse society. Much has been written about what goods to keep on hand for bartering. But precious little has been discussed in survivalist literature on the skills required to barter effectively, and how to protect yourself from fraud.

I recommend that you practice bartering on a very small scale at first, to sharpen your eye for value and your ability to dicker in a manner that will result in a fair trade. (Mutually agreeable and mutually beneficial.) The occasional transaction where you end up slighted is hardly cause for concern. But unless you develop the proper bartering skills, you’ll end up on the weaker side of bargains again and again, and thus fritter away your tangible working capital. The attributes that will put you in a superior bartering position include specific knowledge about what is being traded, knowledge about who’s sitting on the the other side of the table, and good old-fashioned “horse trading sense”.

Knowledge and References
The more you know about the goods being exchanged the better you’ll be able to dicker. Armed with this knowledge, you’ll be able to honestly, yet persuasively talk up the virtues of your own goods, while politely talking down the defects of your trading partner’s goods. Hence, the the greater your technical knowledge of the goods, the better. Take the time to study and develop an ‘appraiser’s eye’ for the condition of used merchandise, the relative value of goods from one maker versus another, and knowledge of the overall market . With that knowledge you can articulate the scarcity of any particular item in your barter stock. (After all, as with any other free market transaction, the key factor in determining value is the supply-demand ratio.) If you are trading for a collectible item then knowing how scarce they are can put you at a tremendous advantage in negotiation. It is important to gather as many references as possible about the items that you plan to barter. Francis Bacon said it best: “Knowledge is power.” You need to authoritatively know which maker, model, variation, grade, year of production, etc. to look for. Product expertise helps makes you a savvy buyer or seller. There are dozens of references on specific types of tool, guns, and collectibles that are valuable to keep on hand. For example, two of the most important ones that I ‘ve found for firearms are: “The Blue Book of Gun Values” and “Flayderman’s Guide to Antique Firearms and Their Values.”

Similarly, knowing exactly how to properly gauge the condition of a used item is quite important. For example, with firearms, the percentage of original bluing remaining, cracks or wear to a gun’s stock, bore condition, chamber condition, bolt face erosion, action tightness, headspace, and so forth all make a huge difference in the value of a used gun.

Detailed knowledge is also crucial when determining the value of a rare coin. (For most of us, that knowledge is too specialized. It can take many years to develop coin grading skills, so a novice can get in over his head very easily. The difference between an MS-66 coin and an MS-68 coin is very subtle, yet that difference can mean thousands of dollars difference in a coin’s price. I therefore recommend that novices only trade professionally graded coins that have been graded and sealed (or “slabbed”) by either PCGS or NGC. A coin dealer Blue Sheet is a crucial reference for measuring the current value of coins with particular mint marks and dates, in any given grade on the Sheldon Scale. Even having an out-of-date Blue Sheet is better than nothing, since it will show relative values of coins, which change fairly gradually. Again, this is not for a novice, or part-time dabbler. (FWIW, even though I have been buying rare coins for more than 20 years, I still consider myself effectively a “novice” level since I don’t ge frequent coin grading practice. Hence, I only buy slabs. (“A man has got to know his limitations.”)

Tools

To be ready to barter with bullion gold cons or scrap gold it is important to have a touchstone, an acid test kit, test needles, a very accurate scale, and a set of Fisch coin authenticity dimensional gauges.

When bartering for canned goods it’s important to have a Julian Calendar (since some packers use Julian dates) and a hard copy of this chart showing how to decipher date of pack codes from various canners and packers.

For liquid fuel it’s important to know if the fuel has been contaminated or adulterated. (Coincidentally, one of our newest advertisers, UR-2B-Prepared.com sells water test strips.

For batteries, it’s important to have a voltmeter. (For the greatest versatility, buy a Volt-Ohm meter with test probes on leads, rather than a typical tray-type home battery tester. )

For examining the the fine details of just about anything–such reading hallmarks–a jeweler’s loupe (magnifying glass) is a must.

For evaluating firearms, as a minimum buy a 6 foot tape measure and a fiber optic bore inspection light.

Dickering Tactics
Above and beyond getting technical knowledge is the hard to quantify “people skill” of dickering. Dickering skills can take years to develop. Part of this is learning how to “read” the face and body language of the gent on the other side of the table. How anxious is he to unload something that he has, or to acquire something that you have? How quick they are to make or accept an offer is a key indicator. And if there is a savvy trader sizing you up, you have to learn to keep a “poker face”, not revealing how excited you are to see a particular item being offered.

Take your time in carefully examining any item offered to you. This accomplishes two things. Firstly, it gives you the opportunity to spot any flaws, defects or signs of wear on the item being offered. Secondly, the more time that you spend examining the item will lead the seller to subconsciously start to doubt the value of what he is offering. If you’re in a flea market or gun show situation once you have an item in your hands you are essentially free to examine it without fear of someone else buying it. Take your time!

If you make an offer for an item, and it is rejected or the counter offer made is ridiculously low than the very best thing you can do is put the item back down on the table. This psychologically distances you from the item, and again, makes the seller begin to doubt it’s value. In the dickering process one of the most valuable phrases that you can use is “Is that the best you can do?” If the seller won’t budge, and you are close to an acceptable price, the next best thing to do is to offer to sweeten the deal with additional goods offered on your side of the bargain. If you still can’t reach an agreement it probably wouldn’t hurt to subtly talk down the value of what’s being offered to you, and talk up the value of what you are offering. “This is a mighty fine widget it’s too bad about this crack and this wear… If it weren’t for that, I think your asking price would be fair.”

The next most valuable thing you can learn to say is to say nothing. After making an offer and receiving a counter offer, silently start counting to twenty. There is something about a long pause that causes all but the most stalwart dickerer to want to fill that silence And nine times out of ten, they will fill that silence with another offer, usually one that is more agreeable.

As a last resort, if you are still at an impasse in reaching an mutually-agreeable trade, your tool of last resort is to thank the seller and start to walk away from the table. This will be your final gauge of just how anxious the seller is to move his merchandise. If you hear “Wait, wait, wait, come back here…”, then you know that the seller still has room to negotiate on price or quantities. Keep in mind however, that this is a dangerous tactic. Once you walk away from a table without the seller voicing objection, but return later, you have subconsciously boxed yourself into the previously-offered price. If you come back later for the same item, the seller will know that you are anxious to purchase it, and did not find a better deal for a comparable item elsewhere, so they’ll probably hold to the same price.

When selling, keep in mind that you can negotiate downwards, but not upwards. Always make your initial asking price somewhat higher than what you really want out of it. Some people will not agree to even a good deal, unless they can extract at least one price concession from you. So, set a fairly high price, and then negotiate downward.

If your counterpart brings an item to offer to you, but that item is of no interest to you, always thank him for his time: ‘Thanks, but I’m not interested in that right now. Do you have any X available?”, describing what you are looking for in trade. Remember, a sales venue is an opportunity to gather information about other items a seller may have available, but may not physically have with them. It may not hurt to make arrangements to see them at the next event, reminding them to bring those items so you can make a deal next time.

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When going to attend a flea market, gun show, or horse trading session, it is important to “dress down”. If you wear a fancy Rolex watch, or fancy designer clothes, consciously or unconsciously your counterpart will size you up as being made of money. So dress very casually, including your shoes. Leave your jewelry, pens, and nice watch at home. Wear your cheap plastic-cased digital watch for these excursions.

You also need to learn to be observant about your counterpart. Is he a collector, that happens to sell on the side, or is he a journeyman salesman, who makes a livelihood at the business. Is he retiring and selling off inventory? Is he someone selling merchandise on behalf of a friend or relative? The bottom line is: just how anxious is your counterpart in making a deal?

Timing and Rapport

When approaching a vendors booth or table for the first time it is important to first wait until the vendor has finished dealing with any previous customers. Don’t interrupt a man when he’s making a deal! Smile and make eye contact, and if appropriate for the venue, introduce yourself and shake hands. If you are a fellow vendor, it’s important to wear your badge, or otherwise make it known that you also have a table or booth. This lets the seller know that he is talking to a wholesale rather than retail customer. This can make a tremendous difference when negotiating price. Even if the vendor appears to have a pile of worthless junk on his table (with perhaps a few nice items of interest) make a point of expressing your admiration for his merchandise. Say something like “You’ve got a real nice inventory here” or “I can see that you have good taste in widgets“. This is an important step in developing rapport with you counterpart. While it doesn’t hurt to point out a defect on an individual item while negotiating for it, do not “run down” the quality or condition of everything that you see. Doing so could skunk the entire deal-making process. OBTW, don’t be shy about pointing out defects in your own merchandise. “Oh, in case you didn’t notice, there is one dent here…” That lets your customer know that you are reputable.

Another key aspect of understanding buying and selling psychology is the “stage of the game”. At the beginning of a show or sale most journeymen sellers arrive inventory rich, and cash poor. Near the end of the show, they will likely have more cash (or precious metals) on hand and then will be in a better position to make offers. Although some of the best items may have already been sold, one of the best times to make a purchase or trade is near the end of a show, when some sellers have had a “slow show”. At flea markets and gun show wait until just before the vendor’s “tear down” and pack-up time begins. Depending on their situation they might feel desperate to make a good sale or a couple of good swaps so that they can feel that they’ve made the show worthwhile. So, if you saw an item earlier in the show, and could not negotiate an agreeable price, wait for the end of the sales event. This, BTW, is particularly valuable tactic if the item in question is particularly bulky or heavy. It is the unspoken goal of every seller to “go home light“.

If you encounter a seller that has the sort of merchandise that you think would be of future interest, then it’s important to get that seller’s particulars so that you can contact him later. Take copious notes. The same applies when you encounter a seller that has a particularly valuable area of expertise or a rare stock of items–especially spare parts. These are people well worth “networking” with.

Never Trade Hard for Soft
When negotiating a trade, keep in mind the absolutely fundamental rule: “never trade hard for soft“. This means, if what you are offering in a trade is a compact, valuable, durable, tangible item, that is in short supply, or highly valued, the don’t make the mistake of trading it away for items that are less durable or desirable. Otherwise, at the end of the day, your counterpart will be going home with the better goods than you. The only exception to this rule would be if your counterpart is willing to trade a much greater quantity of his items and that you know that you have a ready market for them. A corollary to this rule is, that it is better to trade your bulky for his compact. (Or as one aging gun show vendor I met in put it, “Don’t never trade away handguns for rifles or shotguns.” That is simple yet sage advice.) This is particularly important in venues where space is at a premium, and you are paying for the use of that space.

In closing, barter takes time to learn. Invest that time. Also invest in the proper references. Lastly, invest in a stock of top quality barter goods that you predict will be sought-after in a post collapse world. With the right goods and the requisite knowledge, you and your family will never starve.