Economics and Investing:

Tom B suggested this from WorldNetDaily: $120 Trillion in Derivatives. “They are privatizing the profits and socializing the losses.”

Evi recommended this: Glenn Beck comments on a dollar collapse and global government.

Items from The Economatrix:

Stock Market Falls as Home Construction Slows

Where Are Stocks, Economy Headed? Even Pros Disagree

Goldman Says “Sorry” and the World Moves On

Gold is Getting Frothy

US Wants China to Buy Into Its Small Banks

Gold at $5,000 an Ounce? Don’t Discount it

Speculators Accused of Forcing Up Fuel Prices


Core US Deflation Continues to Gather Pace

AIG $85 Billion Bailout was Botched, Report Says

Gold in the Face of Fiat Fallout

John Galt: The Day the Dollar Died
(Fiction)

US Job Losses Demystified



Odds ‘n Sods:

Reader Chris B. wrote to mention that a software update glitch caused him to lose all of the address book data on his Blackberry. He wanted to remind folks to periodically write down (or upload and print out) all of the phone numbers, addresses, and e-mail addresses that you keep stored on hand-held devices. Chris wrote: “I felt pretty sheepish, using my laptop to e-mail everyone for their cell phone numbers because I don’t know them and didn’t have the foresight to write them down.” Nothing beats a hard copy backup!

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Gun Sales Shoot Up Amid America’s Fear of Rising Crime and Terrorism

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Cheryl mentioned some Free Downloadable Survival Books

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Don’t miss out on the special two-week 25% off sale on canned Mountain House foods that runs through the end of November, at Ready Made Resources. For even greater savings, they are offering free shipping on full (unbroken) cases lots. But because of the higher handling costs, if you “mix and match” cans within cases, shipping will be charged.





Letter Re: Getting a Christian Wife Involved With Preparedness

Mr. Rawles,
I’ve been into the survivalist genre since I first read [the novel] Alas, Babylon [by Pat Frank] about 10 years ago. Since then i’ve read just about every book on the subject I can get hold of. I ran across your novel “Patriots” about six months ago and it has really lit a fire under me. When discussing the subject with my wife, I was surprised when she asked me, “why?”. She said that if our great country collapsed, what would be the point of surviving? Why keep struggling to go on when our Father in Heaven is waiting with open arms? I told her that I believe in our country and our ideals. I believe we are a force for good in the world and provide freedom and God-given rights that are found in almost nowhere else. That I believe is worth fighting and dying for. But I still struggle with her question. How do I get her on board? I know it’s a personal decision and motivation comes from within but I just wish I knew what was going to do it for her. In the meantime, I will continue to be the head of my household. I will prepare in an effort to care for and protect my family and I know that with many issues of family, when a godly man leads, his family will follow.

Do you have any advice? I know there are probably many folks in the same situation that could use some encouragement.
Very Respectfully, – L.K. in Boise, Idaho

JWR Replies: You need to talk with and pray with your wife about God’s purpose for your mortal lives. Although our lives are brief in the grand scheme of things, they can and should be used for God’s glory. (That is our Great Commission.) I can think of no better Christian witness than being well-prepared and hence being in the position to share copious Christian charity in a time of crisis or catastrophe. The bottom line is that you can’t share the gospel when you are room temperature.

You also need to think in terms of your progeny. Parents have responsibility to protect and provide for their children. That is Biblically mandated. And on a longer time scale, it would serve God to pass on Christian values to future generations. But that can only happen if your children survive to have children of their own. Parenthetically, I’d like to mention that I’m a descendant of Dr. Rowland Taylor (who’s life and death is described in Foxe’s Book of Martyrs.) He was burned at the stake for holding to the inerrancy of the Bible. He died singing hymns, amidst the flames. Part of Taylor’s legacy is not just in that book, but also in the witness of his descendants, like me. Ask your wife: What will be your legacy? The certain fact is that our lives matter, in many ways, and some of these may not be apparent until after we’ve left this mortal life.



Letter Re: Parabolic Dish Shoutcasting

Mr. Rawles:
I had thought I had seen mention of it on Survivalblog, but have been unable to find it. “It” is a commo system for line of sight communications, which could be employed between adjacent homesteads. The technique is to situate two dish type antennae, as in the “C” or “Ku” band (roughly 1.5-2 meter) earth station antennae used for rural satellite television reception, pointing at each other. With gain on the order of 30-35 dbi, they provide roughly 8 to 10 fold amplification of the signal inputted into it. Now, if I were to face the dish, pointing at my neighbor’s place, and speak at a normal tone, my voice would carry roughly 8+ times farther than I could shout, and also have a beam spread of around 2-10 degrees, providing considerably greater security of commo than bellowing. (breathe).

Can you help me find the reference I am recalling? I want to toy with such an apparatus, and am looking for guidance. Thanks!
BTW, if someone has leads on how I might obtain surplus or used dishes for a song, that, also, would be welcome. Thanks, – Skyrat

JWR Replies: The letter you mentioned was posted in SurvivalBlog, way back in November, 2005. Since 90% of the blog’s current readership came on board in the interim, I’ll re-post it, in full, below:



Letter Re: HF Radios and “Shoutcasting” Parabolic Dish Communications

Dish Communications

Jim:
[In response to an earlier letter,] a HF network is a good idea. A local network also has its merits. There are lots of methods and frequencies for local area usage. Some use military surplus equipment, some CBs, some ham, some TA-1 field phones with wire, some use Wireless Fidelity (Wi-Fi) access points (a great idea if you’ve planned ahead for electricity and it actually works.).

Shoutcasting
I know three people in Colorado who use old solid [metal-coated fiberglass or sheet metal–not expanded metal mesh ]satellite dishes to be able to stand on their hills and talk to each other over several miles using a normal speaking voice. It must be strange facing away from someone several miles away and having a conversation. It works surprisingly well, but I was told that the rare scream of a hawk flying between the dishes can be slightly unnerving.

Local Networks
Many people aren’t aware that the Atlanta, Georgia ham community has a city wide internet that’s not part of the [International] Internet. All courtesy of Wi-Fi. Now that’s an interesting concept. Voice, Phone, Data and Video on a parallel internet. Kinda like the Fed, huh?

Long Haul HF
Lots of ideas and most are good for their particular arena. But here’s the but). But HF can link the continent together so you know what is happening all the way across the continent, even to the other end of the continent. It beats restricting yourself to only knowing what’s going on 20, 40 or 60 miles away.(Not to mention talking worldwide or just listening worldwide, Hmmm?). Check out this article on the Regency Net and GRC-215s radios to get an idea of how the government planned to use HF to provide trans and post attack communications among nuclear capable units in the European Theater and then applied the concept for use in CONUS for FEMA.

Excellent idea overall. [For example,] I look forward to seeing where people suggest landing. One suggestion might be similar to the HF Backpack net, all USB. Geared to HF with less than 20 watts and the ability to carry it on your back while talking on the radio. Rough times? Conservative power requirement! Excellent capability. Perhaps someone will show up there and suggest moving to a quieter spot to start a discussion?

OBTW, the web page cited above states that the units could regularly communicate over 400 miles. Not quite accurate! From Colorado, I regularly talk to San Francisco, San Diego, Maine, and Georgia [the U.S. state]–all from this little radio which fits in a flight bag. It is 20 watts and has a 10 foot vertical whip antenna powered by a 28 volt, 7 amp battery which I can (and do) recharge with solar cells. And it’s about the same size as the venerable PRC-77! Best Regards, – The Army Aviator

JWR Adds: Please note that this letter was first posted at a point in the sunspot cycle,when HF propagation was still good. But since sunspot numbers are presently “scraping bottom”, HF is now “deader than disco.” I’m confident that this pitiful propagation situation will turn around in a few years, but for now, it is a good time to just accumulate bargain HF equipment, as hams give up on HF, in desperation. (In many cases selling their HF gear at “desperation” prices.)



Letter Re: Converting Precious Metals ETFs to Physical Metals

Jim,
A reader wrote in and was posted with a letter called Converting Precious Metals Exchange Traded Funds (ETF)s to Physical Metals. This is pretty good advice but I would consider one change. I would not invest my IRA or 401k into ETFs or mining stocks as they are too volatile. Like his idea that investing in food companies wouldn’t feed his family like physical food, investing in ETFs and mining stocks guarantee nothing as far as actually getting any money out if things fall apart. Rather, what I recently did was convert them to physical metals. The IRS allows this with the metals being held by an approved storage facility. While there certainly is a chance that those facilities could be seized by the government, it may be possible to take possession of the metals if we see the end coming and move quickly at that time. In the meantime, you actually own physical metals in your retirement fund instead of stocks. The only issue for a 401(k) is that you may need to check with your plan administrator to see if they’ll allow you to choose that investment. In my case, I am self-employed and had an old 401k with a former employer that I converted so I didn’t have to work within their system of investment choices. – Dave R.

JWR Replies: Since starting SurvivalBlog in 2005, several times I’ve mentioned that Gold Eagle IRAs are available through Swiss America. I set up one of these accounts through them in the late 1990s, and have held it ever since. My largest contributions to the account were made in 2000 and 2001, which was when gold dipped to a 20 year low. While not as absolutely safe as gold in your hands, these gold warehousing IRAs are a great way to shelter dollar-denominated funds that are presently parked in 401(k)s and IRAs. In most cases you can roll these over into a gold IRA without taking a tax hit!



Economics and Investing:

GG sent us this editorial by Nouriel Roubini: The worst is yet to come: Unemployed Americans should hunker down for more job losses.

Jeff B. spotted: Taxpayers on hook as some bailed-out firms prove frail; With CIT in bankruptcy, U.S. is faulted for investing in weakened companies

As Needlenose Ned Ryerson said (repeatedly): “Watch out! The next step’s a doooozy.” (For some background, see: Dollar Falls to 15-Month Low as Fed’s Support Draws Skepticism.) Meanwhile, at the risk of mixing movie metaphors, it’s Hi-Yo Silver, Away!

Items from The Economatrix:

Stocks Post Modest Gains on Rise in Commodities

Factory Production Dips, Wholesale Inflation Muted

Foxwoods Resort Casino Fails to Make Full Repayment. One of the world’s largest casinos, will default, credit downgraded to D

Target Profits Climb 18% in 3Q on Lower Costs

Home Depot Earnings Fall 8.9% in 3Q

Oil Up Again, Settles Over $79

Dollar Slides Despite Bernanke’s Support

Global Stock Markets Rise to Highest Level of the Year

Gold Prices are a Dead Giveaway

Inflationary Armageddon? Not Yet, But 2011 is Coming

10 States Face Imminent Bankruptcy

Gold’s Record Run: No End in Sight

Silver Prices to Hit New Highs in 2010

Court Orders Fed to Disclose Emergency Bank Loans

Unofficial Problem Bank List Grows to 507



Odds ‘n Sods:

Bobbi-Sue spot what must surely be our cue to stock up before some hefty retail price increases: Rice to Return 100% as Typhoons, Drought Roil Asians

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Chalk up one minor victory for personal liberty: Airport rules changed after Ron Paul aide detained. (A hat tip to HPD for the link.)

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Straycat sent us this: Death Valley Bones May Solve Mystery of Missing German Tourists. The Cat’s Comment: “First rule of survival; Be prepared! Second rule; Don’t do anything stupid! “

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‘2012’ Movie Tops Box Office, Pulls in $225M Worldwide. (Thanks to KAF for the link.)

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CampingSurvival.com has announced that they’re giving away a free Nukalert every month!



Jim’s Quote of the Day:

"The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint enough to keep from meddling with them while they do it." – Theodore Roosevelt



Note from JWR:

Today we present another entry for Round 25 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 25 ends on November 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.



Lessons Leaned from a Wildfire Evacuation, by Daniel in Montana

It was a gorgeous Saturday night, Sept. in Montana’s mountains the weather was hanging onto summer’s 70 degree temperatures, warm and dry. Working all day at the hospital and finishing some of my home preparedness projects gave me a satisfaction and sense of accomplishment. Time to relax, I sat down, put my feet up and was sipping my week’s end treat, a cold beer. I phoned my friend, “Brett” to finalize our plans to butcher a few of his farm animals tomorrow. He was finishing a Bible reading with his boys and was putting them to bed, and would call me back in a few minutes.

It was quite strange, as soon as I hung up, the phone immediately rang. It wasn’t Brett, it was “Eric.” His voice had a tone and panic I’d never heard before. Through his hollering and shouting I gathered a forest fire had just erupted a mile from his home. He was pleading for me to get to his parents’ home and tell them he is being evacuated! He was about to loose his house, horses, tools, everything. His call ended any type of relaxing for this Saturday night.

Eric and I have been friends for years. We live about 30 miles from each other. His parents and I are only 5 miles apart. He was unable to phone them. They have discontinued their land line, living tucked away on the side of a hill, far in the country and far from cell service. We of like minds prefer it that way don’t we?

My job in the health center was to train staff to respond to emergencies. We prepared for heart attacks, missing children, chemical spills, the usual. I am also a martial art’s instructor and former fighter. Eric’s call had ignited my fight or flight response dumping adrenaline into my body. My mind was racing, hundreds of thoughts and ideas all at once. I had just let my guard down. It was my time to relax, but my friend needed help. His request, and my urgency was to notify his parents, get people to the scene!

“Should I ride my Harley”? It would be quicker than my truck, but the thought of being in a smoky fire on a motorcycle wasn’t appealing. I’d ridden it before during a bad fire season a few years ago, the memory of the smoke stinging my eyes and my lungs burning made my decision easy. I ran to my truck.

Oh adrenaline, how amazing you are..more thoughts flooded my mind, simultaneous, in a moment, “grab my boots, Carhartts, jacket, chain saw and Pulaski to fight the fire. I’ll need my cell phone and lights, No, don’t waste time get going! Hurry! I can always come back for my gear. It’s only a few miles. Got to get to his parents! The fire was at least 30 miles from my home. My two daughters were safe, my wife was out for the night, the animals were all in their pens, go now, go fast!”

I blasted off in my truck. My mission, my friend’s request was clear, notify his parents. I took off wearing a pair of worn out sneakers, blue jeans and a T-shirt, no wallet, no ID, no phone. I raced my pick up to Eric’s parents’ home. “I can come back for my gear” disappoints me to this day.

Completing my mission caused another families’ Saturday night to change quickly, crying, disbelief and shock. It took them an eternity to accept this, get dressed and get on the road to help Eric. I followed them at 80 mph for the next 30 miles. Of course, we got stopped for speeding but the considerate officer knew of the fire situation and let us go, no ticket. I hope he reads this. I’d like to thank him.

As the miles passed, the outline of the mountain tops were easily seen glowing a dull red. Smoke was now thick from the burning trees. I shut the truck’s air vents. As we turned off the main highway I was suddenly cut off by a frantic heard of deer, several horses and a few dogs. They were crisscrossing the old road running wild. The fire was spreading quickly. I wondered, what I was getting into? This isn’t safe. This really happening!” My friend needed help, there was no hesitation, only my commitment.

The country dirt roads were not made for the traffic created from fire and pumper trucks, pick ups and trailers. The dust from the vehicles choked any attempts at normal breathing. I wrapped a bandanna around my nose and mouth but they were already dry and burning. It was quite dark but the glow from the fire and headlights created an eerie radiance. Any form of light was now encased in an evil combination of smoke and dust. Nothing was seen clear. Nothing was for certain. My Saturday had changed so quickly I couldn’t keep up.

My thoughts drifted to how valuable my gear would have been. Great planning and preparedness on my part. I never drove back to gather my equipment. I even have it organized for this type of grab and go situation. Wondering if the extra time spent would have been worth it? Saving those few minutes and racing off could prove costly.

My instincts told me to drive my truck. My gas tank was rarely below ¾ full, and true to my nature, I’d even topped it off after work. I had a full tank, (no wallet). I always stocked my first aide bag, pistol, extra mags, leather work gloves, 120 ft. of rope, jumper cables and a spot light in my truck. I plugged in the spot light, holstered my pistol, put on my gloves, grabbed the first aid bag and rope and set them on the front seat. I lit up the spot light and in this smoky confusion of animals, firefighters, trucks, trailers and flashing lights, I found Eric. He was standing in a grass field, sweating, dirty and holding two of his five horses.

I jumped out. Eric was in shock, my friend and brother needed help and lots of it! I used my 120 foot rope and several of us banded together forming a human fence. We were able to coral two more frightened horses. It took several attempts and over an hour to trailer those two. We roped off others and tied them to the trailer Like us, they were scared. confused and running on adrenaline One horse, was cut and bleeding bad. Her chest and legs sliced open, looked like she tangled with barb wire. I released my right hand from the rope and rested it on my pistol, assessing her, wondering?

One lady was standing alone in the middle of the dirt road, trucks and trailers driving around her. I grabbed my first aide bag and went to her. She was stiff, didn’t speak, didn’t answer my questions. I checked her, no signs of injury, B/P and 02 sats were within normal limits, pulse was racing, whose wasn’t? No cuts or bruises, shock. I drove her down two miles to the small country town, Lakeside where others had gathered by the Red Cross station and were sharing information and horror stories.

I could hear conversations of those who needed to get gas at this time of night, without success. Most stations were closed and the one that was open was choked with long lines, and taking credit cards only. Beautiful 350 Turbo powered Cummings trucks sitting, going nowhere, without fuel. Frustrated drivers, swearing, pounding their fists on their hoods as the fire threatened their homes.

One lady was standing in shorts and a tank top, great for the warmth of the day but more than exposed to numerous dangers in this situation. Her home was directly in the fire’s path. She had called the police prior to attempting to go to her home. They told her not to worry she would not be evacuated. By the time she got home, the fire had changed directions and she was not permitted to go near her home.

Eric had made several phone calls and other friends arrived. Some were quite prepared, some not. With his friends there to help him, all Eric could do was stand in disbelief, mumbling, “I’ve lost everything. I’ve lost everything.” I held both his arms, looked him square in the face and reassured him he hadn’t lost everything. “There still is time. Look, your house is right here, the fire’s still up on the mountain top. What can we get out of it? What’s first?” He didn’t answer. He ran off to get a chain saw.

What are his priorities? What did he want out of his home? If his house did burn down what is important to him? We may only have this one chance. How can I help? What do I get for him? birth certificates, insurance papers, cash, guns? Where is all this?

Then amongst all the fear and shock, unexpectedly, an angel gently touched my arm. It was Eric’s mom. She was a calm in all this confusion. Her and Eric’s dad are older, not in the prime of health and took a little longer to find us. His dad, Charles may not be in his youth but he sure proved his efficiency on the front end loader. Charles took up his position on Eric’s loader and immediately started pushing over smaller trees and brush, dragging them away from the house and work shop. He was also building 10 ft high mounds of dirt around the house at the same time. He was amazing! Efficient, productive, we were making gains now! We were on the offensive! We rallied behind their calm wisdom and experience.

All too sudden, it was quite, very quiet. The front end loader stalled while dragging a tree and wouldn’t start. After several attempts to restart it, the battery died. At this moment I felt the weight of the Red Sea crash in on me. I felt the fatigue. I was exhausted. I couldn’t breath. My knees, ankles and feet were throbbing, the past few hours walking, running and tripping in unfamiliar fields and dirt roads had taken its toll. My boots were now worth millions.

“My boots, my gear, Wish I would have….wait! I always carry jumper cables in my truck! I hobbled to it and eased into the front seat. Shifting and pushing the clutch sent waves of pain through my battered ankles and legs. I drove through the field right up to the Bobcat and popped open my hood. Charles had been trying to restart it and grabbed my jumper cables. In a few short minutes, we had her running again! Guess I wasn’t that sore after all and Charles didn’t seem quite as old.

As I moved my truck out of Charles’ path, the headlights caught an outline of Eric at the base of a tree. He found his chainsaw and had started to cut down the larger trees close to his home and shop. Charles could push them away from the house once they were on the ground and the fire would not have any fuel. Great idea.

Eric was halfway through a 60 ft. Tamarack and found his chainsaw had no fuel either. He ran out of gas and had none stored. Vehicles, people and animals all racing in the glowing dark and now a 60 ft. pine tree ready to come down at any time. We had an experienced logger, a Stihl chain saw but no fuel. This was very dangerous and we created it.

Tired, thirsty and frustrated, I lit up the tree with my spot light and parked my truck sideways on the dirt road blocking any traffic from the North. Others stood on the South side and stopped any flow from their direction. Charles inched the Bobcat closer and closer and was able to push over the 60 ft. danger without incident. We all sighed in relief.

The whole night was filled with events like this, success mixed with failure. You never experienced any one emotion for more than a few minutes. The burning fire created a constant urgency in everything we did. The eerie backdrop of a mountain glowing red with an uncontrolled fire wouldn’t let us rest.

Time changed that night. It would slow and pause for a moment, then by the time you blinked the smoke out of your eyes and it sped up creating situations and forcing immediate decisions throughout the night. There were times when I was watching all this unfold, far away from the fire, danger and confusion. There were times I was in the middle of everything, eyes stinging, scared, tired, wanting to do more for my friend.

Lessons learned:
1) Take the next step, if you have been preparing, don’t let up.
2) Emergencies seem to happen when we let our guard down
3) Do not become drunk with wine or strong drink
4) Help your friends prepare.
5) When a situation occurs, it will probably be at night and dark, you’ll be hot or cold and definitely tired
6) You respond they way you practice/prepare
7) If you do not practice or prepare…………things will get ugly
8) Little things we do on a daily basis, our habits, make big differences in crisis situations
9) Have fuel

I’d like to thank Mr. Rawles and your blog page. I’ve been a regular for almost two years now. It has been very valuable to read it and your books. You have given sound advice and enhanced my sense of preparedness. Because of your mission people were better off in a Montana wild fire. I hope and pray similar situations never come again but I feel it is only a matter of time. When the next one occurs, I will be even better prepared and will react with more efficiency thanks to you and others like us.

Since I initially started writing this our weather has changed. In a 48 hour period it has gone from sunny and 70 to 4 inches of snow, icy roads cold, and minus 4 degrees at night.

God Bless us all. – Daniel in Montana



Two Letters Re: Long Term Food Storage Package Now Sold at COSTCO

Hi Jim,

You’ve probably already seen this storage food now sold by COSTCO but it was news to me. Is that a sign of the times or what? In Him, – Karen H.

Jim,

I just noticed that Shelf Reliance “Thrive” brand food is being sold at CostCo.com.

I love your site, – Robert C.

JWR Replies: With a few supplements, the Thrive food storage system would make a very good “core” food storage system for someone that puts a premium on their time. These are top quality products. You would of course want to add other foods for variety and to up the calorie count to compensate for the rigors of doing lots of physical work in a disaster situation. Don’t overlook having additional fats and oils, as these are often lacking in many of the commercial food storage systems. (Too many lean meats and not enough fat and other nutrients can induce Rabbit Starvation (aka protein poisoning) –where you can have plenty of protein-derived calories, but still starve to death.) Adding a good quality multi-vitamin supplement and/or a sprouting kit is also important. And, needless to say, if you store wheat, you will also need to buy a hand wheat grinder.

If you do your own CO2 packaging (as I describe in the “Rawles Gets You Ready” family preparedness course) then you can set aside a one year supply even less expensively, and tailor the choice of foods to match your own preferences. In the course I describe in detail how to shop for nearly all your storage food items at “Big Box” stores like Sam’s Club and COSTCO. By buying in bulk and re-packaging, you will end up with foods that are more palatable, and close to what you are already eat on a day-to-day basis.



Letter Re: Converting Precious Metals ETFs to Physical Metals

Jim,
I send this respectfully to those delusioned Exchange Traded Fund (ETF) investors. Just like the people of earth believing the world was flat, it will become common knowledge that ETFs are just a vehicle for investors and not for those who believe in the metal. It is proven in the ETF prospectus that most are backed with the same faith as our Federal Reserve Notes. Both are still good for trading for profit now but when TSHTF at least your dollars can be used as tinder. You will never be shipped a single ounce of precious metal from an ETF. Just like you would never be shipped a barrel of oil or given the keys to a house owning shares of their respective ETFs.

I don’t own shares of bulk food companies, I own bulk food. That is what will feed me and mine. If you believe in the metals and want to store your value for the long haul then buy the metal itself.

So the question now is as it should be, How do I get the most metal for my money? I am sure most who may be reading this do not trust the system as it is, so stop using it.

First, stop putting cash into it. A matching 401(k) is the only reason I still play along, for now, its free money.

Next take out what you don’t want others (gov) to have access to or know about.

Whatever you leave in the system (401(k), IRA, etc.), apply to ETFs and or mining stocks.

Based on your investing time line and plan for TEOTWAWKI, your metal will be far more valuable than any dollar amount in any account. It will be hard enough just to cash out your accounts when TSHTF.

The way I see it as a 31 year old, the Social Security, Medicare, Medicaid, and Pension fund systems will not be available to me when the government let’s me “retire”. My company just this week told us that my age/time in service group will not be given health care benefits after retirement, so that just gives more credence to the impending need for self reliance.

I believe in precious metals as a store of wealth over time. I also believe precious metals are a great investment at this time. In the Fall of 2008, I took a 50% loan out against my 401k (the most I could take without closing my account). The day I got the check I went to the store and spent 100% on silver bullion. The remaining half of the account is in silver and gold mining companies. From that time until now, my stocks are up more than my bullion, both though are moving up.

Personally, I chose to keep my 401(k) account open and at a minimum as my company matches 5%. I continue to manage my account in “speculative” mining stocks.

Like I said, my time line fits. When my stocks go parabolic and the investment side of the precious metals opportunity expires, I will sell the remaining stocks, cash out my 401(k), pay the taxes which may tally up to 45%, and be out of the system. Yes I will give up almost half but you must remember that was my companies half. Yes I will be young and without a 401(k), but I will have everything I own paid off including home, vehicles, stored food, and other preparations. I will be out of the system and self reliant. I will still have my metal, I will have my health, I will have time, and I will have the option to work where I want, if I want, as I will owe nothing to anyone but charity and God. If that is not retirement then I don’t know what I’m working for in the first place.

There are many people out there who believe in precious metals for the right reasons. If you are involved in ETFs and your not a hedge fund manager, read your prospectus. If you don’t get out of them after that re-read it. Any penalty or tax that you pay to the system so that you can own the same thing in its natural form should be another eye opener to things going on around us all. Stay away from ETFs, buy physical metal and be prepared. God bless, – K.A. in Ohio



Economics and Investing:

GG suggested this commentary by Ambrose Evans-Pritchard: China has now become the biggest risk to the world economy

Reader “Gravy” sent a link to an interesting animated map on changes in unemployment rates.

Mr. D. sent a link to a National Pravda Radio news story: Joshua Kosman, Predicting The Next Credit Crisis. And on a similar note, GG sent this from The New York Post: Book: Spike in PE-owned firm defaults ahead

Items from The Economatrix:

Irish Government to Pay Immigrants to Go Home

Have Prices Already Risen Too Much, Too Soon?

Karl Denninger: Better Late Than Never

Economists Fear Impact of “Dollar Carry Trade”