Economics and Investing:

Jasper found this item from the McClatchy News Service for us: Regulatory reports show 5 biggest banks face huge losses. Here is a key quote: Citibank, Bank of America, HSBC Bank USA, Wells Fargo Bank and J.P. Morgan Chase reported that their “current” net loss risks from derivatives — insurance-like bets tied to a loan or other underlying asset — surged to $587 billion as of Dec. 31. Buried in end-of-the-year regulatory reports that McClatchy has reviewed, the figures reflect a jump of 49 percent in just 90 days. Hmmmm… “Derivatives.” Where have I heard that word before?

DD sent is this: Buffett: The economy has ‘fallen off a cliff’, Investor tells CNBC unemployment level could climb a lot higher

Susan Z. forwarded this: Michael Kosares: Gold coin shortage likely to become chronic

Items from The Economatrix:

The $700 Trillion Elephant in the Room

Wholesale Inventories Fall Again in January

Bank of America Cancels Visa-Holders’ Job Offers

Baby Boomers Going Bust

Chinese Looking for House Bargains in US

Celente: Expect Hunger Riots All Over

Meredith Whitney Says Credit Cards are the Next Credit Crunch

The Next Hit: Quick Defaults

Job Losses Could Drown Stimulus

Arlen Specter: Nation on Brink of Depression “[He] said the nation’s economic situation is more dire than the public has been told, but did not elaborate.”

Roubini: Recession Will Probably Last 36 Months JWR’s Comment: I’ll go out on a limb here, and characterize Roubini’s prediction as wildly optimistic

Surviving The Great Depression

On the Lighter Side of Insanity: Cow Flatulence to be Taxed



Odds ‘n Sods:

I just noticed that Atlas Shrugged by Ayn Rand has jumped to #62 in the Amazon sales rankings. (Out of four million+ titles.) Not bad for a 52-year-old novel! Meanwhile, Gardening When It Counts: Growing Food in Hard Times by Steve Solomon has advanced to #316. Those statistics tell me a lot more than anything we are hearing from the cheering section at CNBC.

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Garret D. flagged this piece from Time: Another By-Product of the Recession: Ex-Convicts

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The folks from CampingSurvival.com (one of our loyal advertisers) just launched a completely re-vamped web site. It is very easy to navigate. They have a very broad product line. Check it out!

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Shawn tagged this: Robber shot and killed with his own gun in Sanpete County



Jim’s Quote of the Day:

“A government by representatives, elected by the people at short periods, was our object; and our maxim at that day was, ‘Where annual election ends, tyranny begins.'” – Thomas Jefferson, letter to Samuel Adams, February 26, 1800



Two Letters Re: Storing Food Without Refrigeration

James Wesley;
Cruising World magazine’s January 2009 Issue has a valuable article on food storage without refrigeration. It includes downloadable charts in PDF format. I would recommend that anyone not certain of the long-term power grid operation might want to take a look at these charts which list the specific food (everything from fresh fruits and vegetables to canned goods), the best way to store without refrigeration, the expected shelf life of the food, and informative notes. The article, by Beth A. Leonard, is titled: “Cruising without the Fridge: Stowage charts for provisions to help you have fresh food for your passages”. It was originally from “Hands-On Sailor” Dec 15, 2008. Regards, – CJA

Hi there
Great site you have – very informative. As a South African, now resident in the USA – I just want to point folks’ attention to a very simple method of meat preservation, which I’ve done regularly while here in the US. All it requires is: vinegar, salt, pepper, and coriander (for the bare basic version). This creates a South African delicacy called biltong – which has been used since the 1600s by farmers, as a way of preserving and storing meat.

Here’s a link to a series of entries, along with pictures, on Chowhound
, showing the very simple process of making biltong. Cheers, –



Letter Re: Supply and Demand at American Gun Stores

James,
We finally caught up on magazine sales in late February, filling our last outstanding back orders, and I actually have a limited number of C Products AR-15 magazines in stock and some Magpul PMags (which I really like). The manufacturers tend to send out a half of an order and then a few weeks later, the balance of it. They are clearly allocating inventory across their customer base and I would estimate that they are running two to three months behind. The delivery situation is getting worse, and my guess is that new orders placed today would likely arrive in June or July.

Almost anything related to AR-15s/M4s is backordered. Spring sets, repair kits, accessories, bolts and bolt carriers, etc. Even magazine repair kits have dried up. I probably have close to $4,000 worth of merchandise on back order from Brownell’s for our web-based store. Prices are rising as well. Wholesale cost on Glock magazines have jumped to what used to be our retail sales price. We’ve seen a 60% jump in the
wholesale price since the election.

The ability of these producers to ramp up production is limited. Many are running extra shifts or hours on existing machines, but none of them want to add new equipment because the capital expense will take so long to recoup. If the law changes and their products are suddenly banned, their income will drop off a cliff and the new debt burden could just force them into bankruptcy that much sooner. So the pipeline is constrained due to the uncertain future. This is another lesson in why it is better to prepare sooner than later.

My advice for anyone who wants to buy ammunition by the case lot and black rifles is to try GunBroker.com. I do not sell there, but I have been doing some personal buying there. Sellers have items in stock, but prices are not low as the auction format tends to float prices up when demand is high. Still, you can buy ammo by the case, complete guns, complete lower [receiver]s and stripped lowers as well as magazines and accessories.

I wish you continued success, safety and security, – Dave of (Captain Dave’s)

JWR Replies: That matches what I have been seeing. As recently as September, an AR-15 “Lower Parts Kit” (the hammer, trigger, sear, pistol grip, trigger guard and assorted pins, springs and detents needed to complete building a stripped AR-15 receiver) was selling for as little as $49. Today, they are very scarce, and selling on Gunbroker.com for as much as $125 each! There are so many folks frantically parting-up ARs that there is a genuine shortage of not just the receivers themselves, but also the little “fiddly bits” piece parts!



Letter Re: Some Observations at a Recent Gun Show

JWR,
I attended a gun show in a Southern state this weekend and wanted to share my observations. I got there very early and was among the first ten in line. By the time we were allowed to enter, the line was out the door of the building and around the corner. I’d estimate around three hundred people in line. I left the show a mere hour later and the room probably had in excess of eight-hundred people and the line was still quite long.

Ammo, of course, went fast. I was able to acquire all the ammo I desired, in all my favorite calibers, with no problem, from my regular favorite vendor. His prices were the same as four weeks earlier, which both surprised and pleased me. Other ammo vendors were doing brisk business, as well, but some of their prices were dramatically higher. By Sunday afternoon, my vendor had extinguished their bulk ammo supply in .223.

My attendance was centered on finding a good deal on an AR-15 full upper, at a decent price (a relative term, of course). Most AR-15 full uppers were going for between $700-$1100, depending on manufacturer and features. The vendor from whom I’d planned on buying was, surprisingly, not there. The very last table I came to, however, had five AR-15 carbine A3 uppers, made by Model 1 Sales, the vendor from whom I’d hoped to buy. Mine came out to $611 with bolt carrier assembly and charging handle, which was easily the best deal at the show, since I’d seen the same basic configurations for $100-$500 more. Most astonishing was the deal I found on Sunday when a vendor was laying out a used DPMS AR-15A2 in excellent condition for a scant $799. She wouldn’t hold it for me and by the time I returned with the necessary funding five minutes later, it had been sold. Most fully assembled ARs, used or otherwise, were going for $1,100-$2,500.

Magazines are definitely going up in price, dramatically. The [formerly inexpensive fairly plentiful US government] contract O’Kay Industries AR-15 mags are now $12-20 in used condition, and new ones are $15-25. P-MAGs at the show were $28-35 and obviously becoming scarce. Springfield XD9 factory mags were going for $28-40, way up from the $21 each that I had paid just two months ago.

One last note. I picked up an ARMS rear sight #40 for $110 and even managed to run across a brand new Vortex flash hider for $60 (I’ve been searching for one for several months now). Average prices there, I guess, maybe a little high.

I’ve also noticed more and more private sales by people buying and selling person to person, increasing one’s odds of finding a good deal. Just the sort of activity that makes Charles Schumer’s hoplophobic blood curdle. I spent $1,500 at this show and got probably half of what I could have bought a year ago for the same money. I suspect this time next year will find me saying the same thing again. Ordnance…at inordinate prices.

May God bless your continued endeavors, – Shrike



Letter Re: Best Shotgun Pellet Size for Home Defense?

Hello.
This morning I read the recent SurvivalBlog letter asking about buckshot, bird shot, and slugs for shotguns. Since this was a question of home-defense and you had mentioned The Box O’ Truth web site, I wanted to direct you to this article.

Apart from my feeling that a rifle is a better tool for home-defense, what I really wanted to point out was the collection of links from The Box O’ Truth, especially their articles #20 and #42.

If you are going to use a shotgun, it’s not enough to say “Okay, I’ve got such-and-such Buck in there, I’m good.” Make sure that you know your weapon. Take it to the range and use your preferred load (and take the time to research various loads from various manufacturers to find the one that works best for you and your shotgun [and your home and/or retreat defense situation]). Make sure you know how that shotgun and load patterns at 3 yards, 5 yards, 7 yards, 10, 15, 25, or whatever the longest distance is in your home (if not sure, then measure!). Make sure you know how it will behave so you can know what shots you can safely take and what shots you cannot safely take [given the available backstops. I don’t believe the original poster’s Mossberg Mariner has a changeable choke, but if other readers do then they should bring their choke tubes to the range and try them out as well to see if a different choke will work better for their needs. Yes, this costs time and money, but if you’re intent is to defend your life, then I’d like to think the time and money is well-invested.

#4 buck? 00 buck? Either way it’s going to be a bad day for the recipient of the pellets, but do mind how that number of pellets ends up patterning, and be sure you can account for every pellet. The last thing I’d want is for most of the pellets to end up in the bad guy and some of the pellets to keep flying [through interior sheet rock house partitions] and hit an innocent. Again, it’s not necessarily one pellet size or
the other, but knowing how that load will behave and how you have to work with it.

Finally, if you do choose to work with a shotgun, check out Box O’ Truth #83 for some good tips on fighting with one. This article has some tips and links as well. The bottom line: Know your tools, get training, and practice practice practice. Thank you. – J.C.D.



Economics and Investing:

Video clip from Australia: Jim Rogers calls is straight on the MOAB, economic recovery, switching to tangible assets, and buying productive farmland. Rogers: “Yes, we are going to have another depression in the United States.”

Thanks to FloridaGuy for this: Pontiac, Michigan may lay off all school teachers

GG sent a link to an Ambrose Evans-Pritchard video interview on the rush into gold over “high degree of fear” regarding hyperinflation and economic collapse

From R.S.R.: Statistician Says US Joblessness Near Depression Highs (19.1%)

Items from The Economatrix:

Gunmakers and Retailers Post Strong Sales Increases

World Stock Markets Fell Again (Monday)

Next Shoe to Drop for US Jobseekers: Lower Wages

Japan Leads the World Into Depression

Evans-Pritchard: Dow 4,000 By Summer is Possible

The End Of The World…As We Knew It

Forget the 1930s, We are Facing 1917

Shining Through the Darkness
(The Mogambo Guru)

Top Republicans Call for GM to Declare Bankruptcy

Recession Finds Even Those with Jobs Losing Pay

Washington Prepares for Big Bank Failure

Stocks Turn Lower as Investors Battle Economic Uncertainty



Odds ‘n Sods:

More evidence that survivalism is going mainstream: Can you survive economic crisis?, Booming preparedness industry says Americans are stockpiling. (A tip of the hat to J.W.P. in California, who was the first of several readers to send that link.)

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KAF sent the link to a captivating article at the Global Guerillas blog on the concept of Fictive Tribes. On an intellectual and philosophical level, Rawlesian survivalists are already a tribe. Sometimes it is something as subtle as a “thumbs up” sign when someone spots your SurvivalBlog hat or T-shirt at a gun show. But often it is something much more. Clearly, we share a transcendent and kindred bond.

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Our Editor at Large, Mike Williamson, sent this: “I can’t help but notice.that the “Homeless” people pictured in this article are particularly well fed. Only in America.”

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Jen dropped us a line: “On my homeschool list, discussion came up as to how much to plant in a garden to supply a family. Someone posted this chart, which I think is useful. It helps to think about growing things this way, and not as ‘how many 6packs should I buy from the garden store’.”



Jim’s Quote of the Day:

"We may be tossed upon an ocean where we can see no land nor, perhaps, the sun and stars. But there is a chart and a compass for us to study, to consult, and to obey. The chart is the Constitution." – Daniel Webster



Note from JWR:

Just six days left! The high bid in the SurvivalBlog Benefit Auction is now at $1,110. This auction ends on March 15th. It is for a large mixed lot, which includes::

1.) A “be ready to barter” box of 38 full-capacity gun magazines, from my personal collection in JASBORR. This box includes: 4 – Used original East German 30 rd. steel AK-47 magazines in a “raindrop” camouflage pattern belt pouch, 12 – Excellent-to-new condition original Bundeswehr contract HK91 (G3) alloy 20 round magazines, 6 – Well-used but serviceable condition original Austrian FN-FAL steel 20 round magazines with cartridge counter holes, 10 – Used AR-15/M16 USGI (all Colt made!) alloy 20 round magazines, and 6 – Excellent to new condition original (Norwegian contract) Glock Model 17 9mm 17 round pistol magazines (early type, with “U” notch). All of these magazines are of pre-1994 manufacture (and hence legal to possess in New York.) These magazines have a combined value of approximately $700, in today’s market. Note: If you live in a state where full capacity magazines are banned, then you must choose to: refrain from bidding, or designate a recipient in an unrestricted state, or re-donate the magazines for a subsequent auction.

2.) 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

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

4.) Five cases (200 pairs) of AMMEX Heatworks chemical hand warmers (a $182.50 value), courtesy of CampingSurvival.com

5.) A Brunton Solarport 4 (4.4 Watt) compact photovoltaic power panel and 6/12 VDC power adaptor set, including as USB power port. This is a $120 retail value, courtesy of Ready Made Resources.

6.) A Pelican Model 1400 waterproof case in olive drab, ideal for pistols, Starlight scopes, or communications gear. This is a $95 retail value, courtesy of Scorpion Survival.

7.) A Non-Hybrid Garden Security Collection, Garden Bean Collection, and your choice of a pint of fertile grains (Hull-less Oats, Spelt, or Winter Rye), a $50 + retail value, courtesy of Seed For Security.

Thus, this auction has a combined value in excess of $1,600. This auction ends on March 15th. Please e-mail us your bid. Your bid will be for the entire mixed lot.



Burying a Shipping Container or CONEX, by Danny Papa

Back during the first Gulf War we used excess shipping containers for underground storage and protection. Out first few attempts to make use of these containers met with disaster. Although they will support a huge amount of weight, in the range of 400,000 pounds directly on top, It must be place directly over the load-bearing corners. The sides and top are vulnerable to flexing, if they flex they can and will collapse. With all of this in mind let’s go through how to bury one the right way, so that it will be ready and usable when the time comes.

First let us start with container preparation. Most of these containers have spent years at sea covered with salt water. This means rust. Very simply the rust needs to be removed as best as possible. A drill with a wire brush does this well.

This is a time consuming job but it will add years of life to your container. Grind off all of the rust and then paint everything [with specially-formulated rust-resistant paint], and I mean everything. Don’t forget underneath. For safety, I have rolled these containers over on their sides to do this step, it would creep me out to jack it up and crawl underneath one. A little grinding and paint will help protect your investment. Once the container is ready be sure to let the paint dry for a couple of days before burial.

The hole needs to be 16 feet wide 55 feet long and 8 feet deep.
Think about this if you dig a hole it will eventually fill up with water.
So we either need to build a sump in the bottom or trench it out to day light. I prefer the latter, since it requires no electricity or manual labor to pump it dry.
Let’s presume we have trenched it to daylight and go from there.
Line the bottom of the hole with foundation plastic, heavy duty black plastic. At least two feet up the sides. Place French drain pipe with silt shield in bottom of hole and out to daylight. Stake it in place where it will not be directly under the edges or corners of the container. Drive a t-post every 8 feet around the edge of the hole through the plastics within 6 inches of the sides. Place 6 inches of gravel in bottom of hole.

Now comes the hard part, getting the container in the hole. .
You want the container centered to the back of the hole within 42 inches of the back wall. A big track hoe can move these containers but make sure with the owner when renting one that it can pick up at least 8,000 pounds if not you may need a small crane. I could go into many different ways to get it into the hole but the key is to get it onto the gravel with out it digging in, where it needs to be and level.

Next, we will discuss Gabions or HESCO baskets. This is basically a wire basket with a liner to hold rocks and sand that will bear the load for the sides of the container. This wire basket wall will be built completely around the containers to support the sides from both lateral pressure and water. To save time and explanation, see the Wikipedia pages on gabions and HESCO bastions.

Here is a shopping list for “do it yourself” basket materials. Please realize that this is that this is the Army way which means expensive. I will go over alternatives later.

24 – Hog panels. These are welded wire 34 inches tall by 16 feet long.
34 – Cattle panels these are welded wire 52 inches tall by 16 feet long
20 – 8 foot long T-posts which are used in the bottom of the hole
Hog ring pliers and a large sack of heavy gauge hog rings (these are to hold the baskets together).
2,240 square feet of chicken wire with 1/2″ size mesh
56 – 3 ft. pieces of 3/8 rebar, with one inch bent down on each end.
28 – 3 ft. pieces of 3/8 rebar, with one end bent into hooks

The hog panels are the bottom middle and top support for the baskets the cattle panels. Place hog panels over t-post and let them to ground where panel is flat on the ground. Line them up end to end with one across the back of the hole.

Place the cattle panels in between the T-post and the wall of the hole. Use the hog rings to tie the bottom together at least one every 6 inches. Take the hooked rebar and drive into the ground every four foot between t post. Now place a cattle panel on the other side of the hog panel and tie them together along the bottom.

Do this all the way around the container. Here is where a little experience is helpful. Build the one in the back first. Put the bottom and the sides and cut a hog panel to the right length for the ends of the basket. Nest do the long side this will be 48 feet long. Now do the other side but we will do it a little different. Once you are four feet past the end of the container cut off the cattle panels and hog panels and build end for the basket. Then build another small basket that goes at a 90 degree angle to the middle of the hole forming an “L” for the doorway.

Now you have the baskets. Cover the outside cattle panel with landscape fabric to keep silt from filling between the rocks then line the entire inside of the basket with chicken wire–use the 1/2″ inch mesh variety. Make sure the basket walls are straight up and down. Use the rebar with the bent ends to tie the sides together. Now fill the baskets with rocks any rocks will do as long as they are packed in and do not leave a bunch of gaps I like rocks about the size of a baseball, the key is that they have to be big enough to not go though the wire mesh. Now put the top on the basket which will be the bottom of the next row. And then build the next layer of baskets. Once the wall of baskets is built then use what ever you have to reach from one wall of baskets to the other. In Saudi we use these wood floor pieces that they made for our tents which were a sheet of 1/2 inch plywood on a 2×4 frame it took two of them to get across but once we put them in place and covered them with plastic we would pile a layer of sand bags on top of them at least three sand bags deep. Then cover the whole thing with another sheet of plastic and top it off with a layer of sand.

On the end where the door is I had you build an L shape this is a basic entrance for any bunker over this end you need to use heavy timbers to support the sand bag covering we used old cross ties from one basket to the other not sure if this is a good idea considering the creosote on the ties.

Now this would take a squad about two days to build but once completed right they will last for decades. Before rotating out of the country, we had a bull dozer drive across one, just to see what would happen. Other than crushing the wooden panels supporting the sand bags there was no damage to the container. Now, to do this the way a civilian could do it…

For the Gabion/HESCO baskets there are many alternatives, such as:

  • 55 gallon drums filled with sand and anchored together with metal strips.
  • Old tires stacked and filled with sand but keep these at least 8 inches away from the side of the container.
  • Sandbags

Sandbags are very labor intensive and again need to make sure there is a gap between them and the container they have a “slide” effect that is hard to overcome without experience. You can even just use packed sand in the basket if you line it completely with landscape material or fabric that will keep the sand in the basket.

Another point of experience: I have had people ask why not use bailing wire or concrete ties to hold the baskets together the simple answer is that rust will eventually destroy this light-gauge wire. You can use this but I would advise that paint the wire after it was twisted it together and don’t expect it to last as long as the hog rings.

Also remember that many things can happen when you are underground, so always keep equipment in the container that can be used to break your way out. Ax, saws, a pick ax, and a hydraulic jack.

To sum it all up you just have to remember three key things. Rust removal and prevention, keep it dry, and alleviate any lateral pressure.



Letter Re: Advice on Cashing in US Savings Bonds

Jim,
While we prepare to break ground for this years garden I’m still preparing my financial stores long before my harvest comes in. There is still one question I can’t find an answer for that satisfies me. Are U.S. Savings Bonds safe? We have allot of EEs that can be cashed in but if they are safe as Bonds why not leave them. But if every thing is headed down the tubes how likely is the U.S. Government to default on this paper just like it would on another paper currency? Southern-Survivor in North Alabama

JWR Replies: As I’ve written many times, you should get out of any dollar-denominated assets. Savings Bonds are safe, but very poor performers compared to the gains in precious metals since early 2001. (FWIW, I fairly accurately called the bottom of the silver market in February, 2001. My proclamation was premature by just a few months, after what had been a 20 year bear market.)

I recommend that you cash in any Savings Bonds that have matured, immediately. Do the same for any savings bonds that will not mature for another two or more years. But you might have a few that are nearing maturity. Hang on to just those and watch the news closely. Once inflation kicks in, be ready to sell all off your remaining bonds as soon as possible, and put those funds into practical tangibles, such as:common caliber guns, common caliber ammunition, full capacity magazines, high quality tools, productive farm land, and precious metals.

It is important to buy a good balance of practical tangibles. I’ve seen far too many of my consulting clients invest too heavily in one area–usually precious metals. There is an old saying: “You can’t eat gold.”



Two Letters Re: Advice on Treating Pond Water

Hi Jim,
I just got the “Rawles Gets You Ready” preparedness course the other day and love it. I also just finished the audio CD [that came with the course binder] and that was a great addition to the book.

My husband has said ‘you can just boil water’ to make it available for drinking water, and I don’t think this is so. [In the course binder] you only speak of having water filters of various kinds.
Can you tell me if water is retrieved from a pond how to treat it?

Also, can you go into detail as far as explaining treating water with Clorox [liquid bleach]?
I just have no idea, say if I put tap water in a water safe container, how long will that last?
Thanks so much in advance. – Kathleen W.

JWR Replies: Creek or pond water should be run through two thicknesses of tightly woven cotton bath towels, (using plastic buckets), as a “pre-filter”. It can then either be treated with plain chlorine bleach, or run through a good quality ceramic filter such as a Big Berky.
See this SurvivalBlog article on spring and well water basics, and these two letters on water filtration and treatment, and this letter on using chlorine bleach to treat water from questionable sources. (
BTW, I found all of those with just a one minute search with the SurvivalBlog Search box.)

The general rule is: If in doubt filter it, and if you don’t have a proper filter available, then use hypochlorite bleach to treat the water.

If you live in an area with chlorinated tap water (from a municipal water supply), you can store it “as is” for just a few weeks in a container that is kept in a cool dark place. Well or spring water that is not chlorinated should not be stored this way, since it might have a marginal bacteria count, starting from day one.

To extend its shelf life of stored bottled to several years, you can add recently purchased plain Clorox (hypochlorite) liquid bleach at the ratio of one quarter teaspoon for each two liters. Do not use bleach with any added scents,”whiteners”, or other additives. Just use plain bleach! And again, I stress using freshly-purchased bleach, since it actually loses strength over time, even if kept tightly sealed.



Economics and Investing:

Bill N. sent this very observant piece: Gold, Spam, and Ruger vs the S&P 500.Bill notes “This is an interesting article, it even has a graph at the end comparing the S&P 500, gold, Hormel (makers of Spam), and Ruger Firearms for the last year.”

Insurance giant AIG (now 80% US government owned, thanks to a $125 billion bailout with taxpayer funds) is not out of the woods yet. Asset values are continuing to decline, creating more credit default swap (CDS) derivatives counterparty risk. $300 billion in assets have already been affected. For some details, see this Wall Street Journal article Top U.S., European Banks Got $50 Billion in AIG Aid

Robert B. mentioned this piece by Richard Daughty (aka The Mogambo Guru): Golden Butter on Inflation Toasted Dollars. Robert notes: “Recent comments in the media note that the current DJIA is at its lowest since 1997. But it’s worse than that. Mogambo Guru quotes Bob Chapman: … “since 1997, real inflation, as opposed to ridiculously understated official inflation, has raged at a minimum of 8% annually, and has soared as high as 14-16%. This means that you have lost a minimum of two thirds of your 1997 purchasing power”,…. It seems to me then, that the current DJIA is actually only one-third the level of 1997. In a word, “Yikes!”

DS spotted this: Gandhara is Latest [Hedge] Fund to Die. Since October of 1997, I’ve been predicting that there will be successive quarterly waves of hedge fund failures and redemption suspensions. I stand by that prediction. There are many more to come!

Items from The Economatrix:

Hedge Fund Hotel Yields Up Secrets

Corporate America Giants Crumbling

Worst is Yet to Come in Job Market

The Truth Behind the Headline Unemployment Numbers

The Bottom for Stocks is a Long Way Off

The Markets Go Cliff Diving Again

Financial and Economic Crisis Entering Panic Phase

Martin Weiss: Beginning Now–The Panic Phase of the Economic Collapse

When the Economy Bottoms Out, How Will We Know?

Tent City Has Returned to Haunt America

Recession Crime Wave Hits Britain, US Next

“Run On UK” Show Foreign Investors Pull $1 Trillion Out

IMF: 20% of UK GDP Spent on Bailouts

Argentina: This is What a Collapse Looks Like

G7 Outlook Worsens