Letter Re: Saving Your Life and Saving Your Relationships–Don’t Drive Your Loved Ones Away

Dear Mr. Rawles,
Emotions are sure running high out there. I’ve tried my best, as a clinical psychologist, to let my readers know that they can have a good life, albeit of a very different sort, as our economy continues to
deteriorate. Your site has done so much to provide a blueprint and important details as to how to go about it. I’ve read some of your material (the Rawles Get You Ready [preparedness course]; “Patriots“, and your blog) and I see in your words the deep respect you have for your readership, and for the importance of leading a life worth living.

Thanks for your consideration, and for being there for so many years. – “Peak Shrink“

Letter Re: Advice for an Unprepared Greenhorn

Jim,
I’d recommend that “Greenhorn” should take a look at your “Profiles” page. I learned as much reading them as I do reading the blog! As you say, starting a “List of Lists” is invaluable to preparedness. It is the only way I can keep track of what I have on hand, whether it be too much or too little. And, just because I know it is a weak spot with everybody, more medical supplies is always a good thing.

Also, most gun shops have a layaway program, so it’s possible to at least start paying on another rifle or handgun. When you get one of these items, make sure the ammo to feed it is your very next purchase! I’d rather have just a couple of good, solid guns and lots of ammo, than a lot of cool-guy stuff and only one magazine of ammo for each.

Make a habit of checking eBay, Craig’s List and the local papers for good deals on things. If there is a sale at the local department store, I strongly recommend “buying ahead.” Meaning, buying children’s winter clothing in the spring when the stores are trying to clear it out, and buying a couple of sizes up. Same with shoes. Another great investment. This is one of those tangible investments that Jim speaks of all the time!

Most of all, stay calm! Breathe! Even having a few extra cases of beans and rice will put you ahead of most of your neighbors. Make sure the whole family is involved, and especially that your wife is your partner in everything you do. Take care. – SJC

Odds ‘n Sods:

Craig R. and Costa Rica Jones both sent us the link to this amazing video clip: Life in Foreclosure Alley. Do you remember what I wrote about “Midnight Flits”? Don’t miss the part near the end where they spray paint a dead lawn green. Its all about “curb appeal.”

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More Nanny State meddling, aimed at reducing bovine flatulence: Meat must be rationed to four portions a week, says report on climate change.

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Michael Z. Williamson sent us this video link showing home-brew autonomous gun developments. This kid could get a DARPA contract! Warning: Attempting this with a firearm would be an invitation to a lawsuit. This would also almost certainly be considered a “machinegun” by the BATFE (even if it fires semi-automatically), since it would fire more than one cartridge with the touch of the laptop keyboard–which they would deem to be the “trigger”. Do not attempt any such experiments!

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Randy F. sent us this link: French Prime Minister says world ‘on edge of abyss’. And here is a bunch more economic news and commentary for your weekend reading pleasure, courtesy of Cheryl: Tax Breaks Big And Small Sweeten Bailout — 600,000 Jobs Lost And Counting — Employers Cut More Jobs Than Since 2003? — Misdirected Bailout Will Make Housing Worse — Euro Bank Rescue In Tatters After Savings Rush — Suffering Businesses Go To 4-Day Work Week — US Banks Borrow Record Amounts From Fed — Asian Markets Fall On Recession Fears — FDIC Seeking Temporary Unlimited Treasury Loans — The Banking System Is Detonating Before Our Eyes — Wachovia Limits Access By Colleges, Inciting Fears — California May Need Emergency $7 Billion Loan — Fed Up With Fed Credit (The Mogambo Guru) — US Dollar Doomed As Credit Crisis Turns Into Currency Crisis — Time For Investors To Panic: SEC Abandons Sound Accounting Practices — Crisis Intensifies Amid Uncertainty — Office Space Emptying Out.

Notes from JWR:

Courtesy of the liberal majority in The U.S Senate, the TARP Bill (which is supposedly limited to $700 billion USD) appears to be a fait accompli. (It now headed to the House of Representatives.) Both senators McCain and Obama voted for it. (So much for us making any meaningful “choice” in the upcoming presidential election.) Disregard all the headlines, folks. In my estimation, the all-fired hurry to enact the TARP bailout was driven by a.) the sudden huge jump in the LIBOR rate, and b.) the chaos that is quietly is going on in the background with derivatives. The politicians have realized that if they don’t do something, and something right now, that global economy is going to come crashing down as soon as next week. And even with the Mother of All Bailouts (MOAB), the markets may crash, anyway. Things are really that bad. At present, the global credit market is frozen solid. More than anything, it resembles a Wooly Mammoth that was suddenly frozen stiff with clover grass still in its mouth. Applying CPR won’t help the beast. But Ben Bernanke and Congress are still doing their best to resuscitate it, putting on a good show for the public. There will have to be a new credit system established, to fill the ecological niche left by the Mammoth.

The first article today is a re-post of a piece that I wrote in early October of 2007. I can now see that my prediction was about one year too early. Given the recent news about the extent of the credit market meltdown, the hedge fund collapses may be even worse than I had foreseen.

From the SurvivalBlog Archives: Hedge Funds–A Disaster Story that Could Unfold in Quarterly Episodes

One of the consequences of the collapse of the credit bubble and the subprime lending fiasco in particular is with hedge funds. There is a substantial risk of uncontrollable instability in hedge funds that could potentially be disastrous for investors. This instability will likely be seen in waves of bad news that will come roughly once a quarter.

First, let me provide a bit of background:

1.) Most hedge funds have rules that allow only quarterly redemptions (“cashing out”) by by their investors. (A few hedge funds even have only one annual redemption “window.”) Typically, the redemption requests must be filed 45 days before the end of any given quarter.

2.) Most hedge funds have rules that allow them to suspend redemptions, at the discretion of the fund manager or their board of directors. This is just what Bear Stearns did with their funds that went under. United Capital Asset Management did the same back in July, for their Horizon Fund L.P., Horizon ABS Fund L.P., Horizon ABS Fund Ltd. and Horizon ABS Master Fund Ltd. (“Horizon”).

3.) Hedge fund portfolios can change radically, almost overnight. This can be either good or bad. If back in the middle of the year a fund manager was wise, he would have minimized or eliminated his Collateralized Debt Obligation (CDO) positions. But, on the other hand, if he was willing to take a risk, to increase yields he might have have increased his CDO holdings in chosen tranches that didn’t have exposure to sub-prime real estate lending.

My personal prediction is that for at least the next year, there will be successive quarterly waves of hedge fund redemption suspensions and perhaps some spectacular hedge fund collapses, with the news breaking in the first two weeks of each quarter. (The first two weeks of November, the first two weeks of January, the first two weeks of April, and so on.)

Fear, Uncertainty, and Doubt (FUD)
The investors in hedge funds place a tremendous amount of trust in the fund managers. This is because the fund managers are generally given free rein to regularly re-invest all of the fund’s assets in the most profitable investments. Sometimes a hedge fund can be almost totally re-invested in a different venture very quickly. For example, investors might assume (based on the previous quarter’s report and the manager’s newsletter) that the fund’s portfolio is heavily in European bond derivatives and the Yen Carry trade. But then then when the next newsletter issue is released, they may learn that 80% of the fund portfolio was shifted into corporate stock derivatives, during a leveraged buyout (LBO). The current economic and finance climate is so darkly clouded with Fear, Uncertainty, and Doubt (FUD), that it is likely that a substantial number of hedge fund investors will make a hasty exit, while the exit door is still open. I suspect that news of these redemptions will inspire additional investors to also cash out, in a cascading effect.

I cannot say with certainty that there will be a hedge fund panic, but ever since the Bear Stearns meltdown, the likelihood has definitely increased.

For any SurvivalBlog readers that hold hedge fund investments with any CDO exposure: If you aren’t sure about your hedge fund’s exposure, then you are better off getting out, pronto. (You probably should have submitted your cash out order in before August 15th.) If you wait for a quarterly report, it will probably be too late, since your quarterly redemption window will probably close before you see the report. And before the next redemption window opens the fund might suspend redemptions. 

Update: October, 2008: The number of hedge fund redemption suspensions is now definitely increasing. Outright failures are also continuing: Carlyle Capital defaulted following failed margin calls.This was followed by the failure of Focus Capital, a $1 billion hedge fund. But more ominously, the failure of Lehman Brothers in September portends some very bad news for the hedge funds.

I expect this situation to get far worse in the upcoming quarters. Consider this your last warning: Get out of hedge funds, while you still can!

Letter Re: Advice for City Folks on a Budget?

Dear Mr. Rawles,
I read the two letters that were posted on September 27, “Advice for City Folks on a Budget”. What struck me was how similar Mike H.’s situation is to mine. I too have a wife similar to the Mike H’s.
At first my wife thought I was out of my tree when I began preparing years ago. After the 1989 Loma Prieta earthquake, she came to believe that what I was doing was prudent, but somewhat overkill. Now that we have entered this period in history, she’s starting to pay attention, and has become a participant. I empathize with people in Mike’s predicament, and I have several suggestions to add to yours:

Before one starts with your recommended “List of Lists”, I would encourage everyone to do a complete inventory of what is currently in one’s household. I understand that sounds overwhelming, but it can be accomplished within a week or two, if one room or closet is done every evening. I’d leave the larger spaces such as attics, garages, and basements for a Saturday or Sunday. I would encourage people to do this as a family group so that people will have an idea where things are when all is said and done.
I’m going to make some suggestions of things to add to one’s preparedness supplies as I go along.

Start by going through your clothing closets with prejudice. Do the same with your children’s closets. Set aside the clothing in a pile that is no longer worn or that is out of fashion. Heavy coats, jackets, etc should be checked for fit. If they don’t fit, place them in the pile. If they do fit, even if you or your kids hate the way they look, put them back into your closet. If you are unable to heat your home, you won’t care what you look like when you’re cold. Keep in mind layering and hand-me-downs [for younger children] when checking fit.

Next, do the same with shoes. Fashion footwear that is little more than eye candy, if it is no longer being used, it should be placed in the pile. Go through your dressers and chests of drawers as well.

Now that you know what you have in your closets, and they’re cleaned out, this makes room for your needed additions. Depending on your climate, you may find that you will need to add things like sweatshirts, sweat pants, gloves, scarves, hats, long underwear, wool socks, heavy boots or more rugged shoes, etc. I live in sunny Central California, and during the winter, it can frequently still fall into the single digits overnight. Most people never notice it because of modern conveniences like central heat. That will change if things really get bad.

Keep in mind your bedding and bath towels. Extra towels, blankets and sheets are good to have if everything has to be washed manually and hung to dry. Make sure you have a way to string a clothesline, even if it’s just above the bathtub.

Now is the time to buy. Many retailers are having sales as their revenues continue to fall, and others declare bankruptcy. Keep an eye out for sales, and don’t be afraid to visit the Goodwill or Salvation Army thrift stores. If you’re worried about fallout from mortified spouses or kids, do it alone, pack it up, and label it. I sincerely doubt that you’ll hear any complaints from people who are cold and miserable.

Next, go through your clothing discard pile. Donate things that obviously will serve no practical purpose in a survival situation. Polyester skirts and pair of pumps that were in fashion in the 1980s really won’t help much. The rest box up and label. There may be neighbors or others who can benefit from your charity if things really get bad.

If you are like I was, you probably had eight pairs of old jeans that had holes in the seat and the like. Save several pairs to cut patches out of to repair the one’s you have now, and to help filter coarse debris from water. Discard the rest. Get a sewing kit capable of handling heavy fabrics. Buy some glue for your shoes, like Shoe Goop.

Next stop is the kitchen and pantry. Go through all your cabinets and drawers. Pull out everything that is food. Go through it. Check the date codes. Things that are way out of date, use or discard. Just because something is past the date code, doesn’t mean it is bad. A little time spent on the web will show you how to interpret date codes and their meanings for various foods.
Set aside things that you know you will never eat. You may have received a Christmas basket that had pickled pig’s feet in it, and you know that even if someone held a gun to your head, you wouldn’t eat it.

Put everything you will eat back, and make a list of things to add to your larder. Buy them as finances permit. When adding to your larder, remember to [FIFO] rotate your stock.
The things you won’t eat, put them in a box to use as charity, or donate them to a food bank now.

Next go through your cooking utensils. The non-stick Wolfgang Puck Bistro set isn’t going to hold up if you’re forced to cook in your fireplace, so you’d better lay in some cast iron or at bare minimum plain stainless steel. If you can only afford one piece of cast iron, then get a Dutch oven with an iron lid. Some are available with a glass lid. If the lid breaks, you’re SOL. Try to purchase brands such as Lodge. There are a lot of inexpensive pieces out there that come from China, and I’ve heard that they warp and sometimes shatter. Check garage sales, and the Goodwill etc. Even if they’re rusty, as long as there aren’t huge pits in the iron, they will clean up and re-season well.

You’ll also need a manual can opener, a “church key” [beer can opener], a manual bottle opener and corkscrew. If you can, get an extra or two of each because sometimes they break or wear out. Your neighbor may not have one, come the time [of need]. Good will between neighbors goes a long way when things are difficult. Extra pot holders and kitchen towels are good too.

Get a set of real knives. Those fancy ceramic ones are awesome, I know, I have a set. They won’t hold up if you have to carve up game, such as a rabbit or duck. Don’t forget a whetstone or some way to manually sharpen your knives. A dull knife is far more dangerous than a sharp one.

As you continue through the garage and attic, use the same critical eye. Discard things that you won’t use to make room for things that you will.
When you finish you’ll have a good idea of what you do have, and can accurately gauge yourself against the “List of lists”.

Here are some additional thoughts:
If you should find yourself with a collection of things that can generate some cash after going through your house, consider a garage sale, and use the proceeds to buy needed supplies.

If you have the time,storage space, and finances, then add hand crank drills, hammers, a “Yankee Screwdriver” and other manual tools to a small kit. Get some nails, wood screws, and a couple of sheets of plywood, a few 2x4s, and heavy poly sheeting. This will help you contend with broken windows and doors. If civil unrest becomes a problem, the 2x4s can be used to reinforce exterior doors. Make sure you have appropriate fasteners such as lag screws or nails between 40d and 100d. (The “d” means penny.) A 40d is about 5 inches in length and 100d is about 10 inches in length.

Buy several large fire extinguishers and position them through the house. Make sure everyone knows where they are and how to use them. Best Regards, – J.H.

Letter Re: Questions on Short Term Survival in an Urban Office Building

JWR,
To follow up on Flora in New York City’s “Questions on Short Term Survival in an Urban Office Building”, here is a link to Aton Edward’s highly recommended book Preparedness Now! which also contains a link to the April 2008 New York Times article that allowed me (thankfully) to find Survivalblog.com for the first time.

Additionally, here is a video interview with Mr. Edwards recorded in New York City and addressing exactly the kind of equipment/tools and awareness/preparedness issues that an office-bound urbanite like Flora needs to survive.

Since April, I ordered and read “Patriots“, the Rawles Get’s You Ready course, and “Rawles On Retreats and Relocation“. Thank you for your informative, easy-to-navigate, and comprehensive blog! This weekend I finally finished reading every page and every day’s worth of SurvivalBlog archive posts from the last three+ years (it took more than six weeks and I now have a big “To Do” list). – Lee in Hurricane Alley

Odds ‘n Sods:

Rourke flagged this article from Marysville, California: Preparing for financial apocalypse: Wall Street scare has some thinking chaos coming

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Commander Zero posted some interesting commentary in his blog about why people don’t prepare, even in the face of immediate and overwhelming threats like the current economic meltdown.

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The gasoline shortage in the southeast has intensified.

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The latest news is that the banking crisis isn’t any better in Europe: France seeks €300 billion rescue fund for Europe. And meanwhile, Senator Harry Reid drops a bombshell: Another major insurance company is on the brink, and Jim Willie has this must-read commentary: Breakdown Approaches Climax. Now on to the chunk-‘o-gloom from Cheryl, our Economic Editor: Central Banks Starting To Buy Gold? — US Auto Sales Plunge — Wachovia Faced A Silent Bank Run — Stocks Buckle On Recession Fears — House Holds Fate Of Bailout Plan — Financial Crisis Investing: The Big Picture — Insurance Companies Earnings Plunge 53% — LIBOR Soars, Commercial Paper Slumps As Credit Freeze Deepens Across The Globe, and from Russia, this commentary: Bailout Fraud (“This is a default crisis. Banks and large corporations are going to default. The banks know that. The public does not yet.”)

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The folks at Front Sight have just posted their 2009 course schedule. Because of the hot desert climate at Pahrump, Nevada, I generally recommend taking courses at Front Sight between mid-October and Mid-April, when the weather is pleasant. OBTW, don’t miss out on their “Get a Gun” training and gear package offer. This offer will probably end soon. Don’t hesitate any longer, or you’ll regret it!

Jim’s Quote of the Day:

“Fear, Mr. Bond, takes gold out of circulation and hoards it against the evil day. In a period of history when every tomorrow may be the evil day, it is fair to say that a fat proportion of the gold dug out of one corner of the earth is at once buried again in another corner…” – Ian Fleming, Goldfinger

Notes from JWR:

Now we’re a fashion trend! Details magazine just published a well-written and humorous article that features a SurvivalBlog reader, titled The Yuppie Survivalists. That’s not what I would have titled the article, but then I don’t publish a trendy men’s fashion magazine. And I’m no yuppie. I’m neither young nor urban, and I’ve never had that sort of shopping budget. (The Memsahib keeps me on a short leash.) OBTW, they included just one brief quote from yours truly and one from Jason over at SHTFblog.

Oh, and speaking of men’s fashion, another article on survivalism will appear in the upcoming issue of FHM magazine and it too will be quoting me. OBTW, the Memsahib and I recently were in The Big City and we dropped by a bookstore, hoping to take a glance at the FHM article. But we were shocked to find that there was no glancing allowed, because FHM is one of those magazines that comes wrapped in plastic. (I have been told that it has some pictures of scantily-clad models, but no nudity.) My apologies for directing any of you to contact the journalist at FHM. I should have checked first on what sort of magazine it was, before I agreed to an interview, or for promising to post the author’s contact information in SurvivalBlog. My humble and sincere apologies for not first investigating the magazine!

The high bid in the SurvivalBlog Benefit Auction is now at $770. The auction for a large mixed lot that includes: A Special Mixed Vegetable Case-Six #10 Dehydrated Food Cans (Retail Price $105.95) This special Mixed Vegetable Case contains six #10 (96-ounce) cans–one can of each of the following: Mixed Vegetable Blend, Green Beans, Sweet Garden Peas, Mixed Peppers, Potato Dices, and Sweet Potatoes and a EZ-Towels 10 Pack Combo (10 bags of 50 towels. Retail value: $99.95). These items were donated by Jan at Healthy Harvest Foods. An assortment of world class loose leaf teas, and a box of Bellagio hot chocolate (25 individual packs), with a combined value of approximately $100. These items were courtesy of Charlie at CMEBrew.com. A NukAlert radiation detector (a $160 value), donated by at KI4U.com. And, a Katadyn VARIO water filter, donated by Ready Made Resources. (An $89 retail value.) The auction ends on Monday October 15, 2008. Please e-mail us your bid.

Our Changing Times: The Advent of Rule 157 and Perhaps Rule 308

We are living in unprecedented times. The global economy is being asphyxiated for lack of credit, and we face the prospect of an economic depression that could be worse than the Great Depression of the1930s.

The Advent of Rule 157

One of the contributing factors in the unfolding banking debacle was the advent of Financial Accounting Standards Board (FASB) Rule 157, that went partially into effect on November 15, 2007. This was a financial accounting rule change that yanked the bankers back from the Fantasyland games that they had been playing with Collateralized Debt Obligations (CDOs), Credit Default Swaps (CDSs), Structured Investment Vehicles (SIVs), and others. Under Rule 157, banks got a strong, painful dose of reality. With Rule 157, balance sheets had to be “carried at fair value on a recurring basis in financial statements.” The end result was that Level 3 assets could no longer be concealed. After some foot-dragging deferments, the banksters were finally required to mark any illiquid investments to the most recent market price (“marked to market”) of a comparable security that actually traded. Pushed from what I called the “Marked to Mystery” realm into the light of day in “Marked to Market”, the accounting rule change has resulted in the banks writing off more than half a trillion dollars. The eventual writeoff total is expected to be as much as $1.5 trillion. (It is difficult to predict the eventual size of the writeoffs since real estate prices are still falling. This is the classic “moving target” dilemma. The writeoffs will continue to grow with each drop in real estate prices. As the writeoffs continue, the bankers will beg for more bailouts.

The current debate about the proposed $700 Billion Troubled Asset Relief Program (TARP)–also known as the Emergency Economic Stabilization Act of 2008 (EESA)–ignores two huge Troubles to come. You’ll note that those are Troubles with capital Ts, as in Trillions.

The first Trouble is that–at least as I heard about one currently drafted version–the bailout bill will “cap” the Treasuries holdings of bad debt at $700 at any given time. But there is nothing to stop Treasury officials from marking down the value of those instruments to 30 cents on the dollars and re-selling them, and then buying hundreds of billions of additional toxic debt paper. This could go on and on until the total cost of the bailout runs into multiple trillion dollars! Note that the proposed bailout bill started out as a simple three page document that gave the Treasury Department carte blanche. But the bill blossomed to 130+ pages as the congressional debate continued. This first TARP bill was voted down, and a new bill with different terms is now in the works. The terms of the new bill have not yet been announced.

The second Trouble is that while the “contentious debate” is going on, on Capitol Hill, the Federal Reserve is busy handing out cash (electronically) by the dump truck load, to “pump” liquidity back into the banking system. In just the last 10 days, they’ve made “emergency loans” to American banks that have exceeded $1.2 Trillion, and there is no end in sight. The end result of all of this “bailing” and “pumping” will be the inevitable monetization of mountains of public debt. There is no way to generate tax revenues to cover even a fraction of it, so, the requisite “dollars” are being created out of thin air. (Read: monetization.) This will of course dilute the value of the dollars already in circulation. So, sooner or later, mass currency inflation will be the end result. I predict that if this monetization goes on unchecked for long enough, it will result in a hyperinflationary death spiral for the US Dollar. In our modern, technologically complex, and fragile society, hyperinflation will first result in a tragedy for pensioners and anyone else living on a fixed income. Then as time goes on, it will wipe out any and all holders of paper currency dollars and then the holders of virtually all investments that at denominated in dollars. The utter destruction of the US Dollar will at some point result in mass chaos in the streets. We can expect huge protests, riots, looting, arson, and a breakdown of law and order. It will be The End of the World as We Know It. (TEOTWAWKI).

The banks are under such duress from the “unprecedented market conditions” that they are now strongly pressuring the FASB to “temporarily” suspend Rule 157, so that their Level 3 trash paper can again escape being marked to market. (Effectively, this will be official sanction to cook their books.) We’ll stay tuned and see what happens.

The Possible Advent of Rule 308

So, let’s assume that hyperinflation does kick in sometime in the next few years, the economy falls apart, and there is anarchy in the streets. What will you do when there are not enough police to stem the swelling crowds of looters? What will you do when the power grid is down, burglar alarm systems no longer function, and even the telephone networks are down? Who will you call for help? How can you call for help, without phones? The simple answers are: nobody and no way. It will be “You’re On Your Own” (YOYO) time. In these circumstances your only logical choice will be to implement Rule 308. It will be up to you–just you and perhaps a group of trusted friends and neighbors–to provide for your own safety, security, and defense of life of property. Think of it as a neighborhood watch on steroids. The difference between life and death may come down to this: The rifle in your hands. This is why it’s called Rule 308–as in .308 Winchester. (Or, for our cousins in the British Commonwealth, it was originally called Rule 303. (As in, the .303 British caliber.)

Political action is great. It would be wonderful if legislation were to fix the economy and prevent an economic catastrophe. That is what I’m praying for. I strongly encourage people to write letters to the editor, write letters to your elected representatives, circulate petitions, take part in Town Hall forums, and vote in all of the elections. But at some point the political process and the rule of law may suddenly be overcome by events, and you will have to resort to Rule 308. I dread that day. But be ready for it, just in case.

Letter Re: Finding Archived SurvivalBlog Topics

Mister Rawles:
First off, I want to thank you for running SurvivalBlog. Its an awesome resource–sorta “one stop shopping” for folks like me that are getting prepared.

I first read your book three years ago, when I was on my second deployment in Iraq. Your novel [“Patriots“] was in a big pile of books in our unit’s MWR [Morale, Welfare and Recreation] room. They say you can’t judge a book by its cover, but I was following advice from my home-town librarian when I picked your book. She once advised me: “Look for books with ‘broken’ spines and that show lots of wear. Those are the ones that have been read a lot, and that ‘s usually for a good reason.” Well, your book looked like it was about ready to fall apart, it was so worn out! I gotta admit that the first time I read your book, I was saying to myself: “Suuuure. Like an economic collapse will ever happen. Not in my lifetime.” Well, the past three weeks of [reading the] newspapers have given me a whole new outlook on that subject. The first chapter of your book is practically prophecy. It is eerie how many things you got right. And you wrote it ten years ago? Word.

Thanks to you, I recently cashed out of my West Valley National Bank [of Arizona] savings account and will lose my checking account once the last few checks clear. That will save me some sleepless nights, I’m sure. Thank you for your repeated warnings to people about getting out of banks that are “under-capitalized” (broke)! I used the bank safety rating service that you recommended, and found out that my bank had a “D” rating! Well, I definitely now owe you a [10 Cent Challenge voluntary] subscription, and I’ll do so A-SAP.

Next, I have a nit-picky complaint: There is way too much in the [SurvivalBlog] archives to be able to read through it all. Do you have any ideas on how I can access it better, to research [particular topics]? Oh, one funny thing I gotta mention: Whenever I start to research prep[aredness] things with Google, almost always it is SurvivalBlog posts that end up in the top 10 or 20 items found, whether is its “HK91 alloy magazines” or “paracord and LC-2 harness'”, or “infrared cyalume trip flare”. I can’t think of a compliment better than being waaay “up there” in the Google rankings. SurvivalBlog is the Hotel Sierra blog!

Up until last week, I also had one other complaint, but I solved that one myself. It was distracting to have all the advertisements crawl by while I was reading the blog. But then I realized that all that I had to do was leave my [browser] cursor arrow on top of any ad, and they stopped moving. Simple, and it stops the eye strain. Thanks and Lord Bless You! – Ray V. in Arizona

JWR Replies: Thanks for your kind letter. There are now more than 5,300 archived SurvivalBlog articles, letters, and quotations. You are correct that there it is too much for the average reader to read through sequentially. To research particular topics, I recommend that you take full advantage of the article categories and blog database search feature available at the SurvivalBlog site. Say, for example, you want to learn more about how to secure your home. In the right hand bar, down below the scrolling advertisements there is a list of topic categories. By clicking on the “Retreat Security” category, only the articles and letters tagged with that topic will be displayed. Or, you can do a more detailed search, using the Search box at the top of the right hand bar. For example, if you enter “Security AND Infrared AND Starlight” only those posts that include all three of those words will be displayed.

Odds ‘n Sods:

Back in 2005, I began warning SurvivalBlog readers that derivatives were a much larger threat than the housing bubble. Now we read in the mainstream media: The $55 trillion question. The article begins: “The financial crisis has put a spotlight on the obscure world of credit default swaps – which trade in a vast, unregulated market that most people haven’t heard of and even fewer understand. Will this be the next disaster?”

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Safecastle just a started an unusual 25%-off Mountain House sale. The sale ends on October 14th. Get your order in immediately for the best selection!

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The latest slug of bad news from our Economic Editor, who is recovering from a recent surgery (please keep Cheryl in your prayers): USA 2008: The Great Depression — The Day Main Street Struck Back At Wall Street — Credit Markets Frozen As Banks Hoard Cash — Western World Will Become Significantly Less Wealthy — (“Corporate America has just lost a chunk of its value the size of the Indian economy.”) — Greenspan: “Gold Is The Ultimate Form of Payment In The World” — The Truth About The Bailout (“‘Hundreds of billions of dollars are going to bail out foreign investors. They know it, they demanded it, and the bill has been carefully written to make sure that can happen.” – Brad Sherman , D-California.’ That’s right folks. You are going to have $700 billion – about 25% of the total Federal budget – put on your personal credit card (via taxes forever) in order to bail out foreign investors.”) — Marc Faber: Bailout Won’t Stop Depression; Buy Gold (“A stock rally in the event that a [bailout] package is approved will be temporary and should be used as ‘an opportunity’ to sell, said [Marc] Faber.”) — Inflation In Stereo (The Mogambo Guru) — $1 Quadrillion of Unregulated Debt at Core of Coming Derivatives Crisis — Credit Cards To Implode 1Q 2009: Analyst — You Won’t Believe Where The $700bn Bailout Figure Came From (“Do you know where that very important $700-billion figure came from? Here’s a quote from that Forbes story: “It’s not based on any particular data point,” a Treasury spokeswoman told Forbes.com Tuesday. “We just wanted to choose a really large number.” They made it up to be sufficiently ginormous to frighten everyone into rapid action. And it worked.”) — Interbank Dollar Rate Hits 8% (“That high of around 8 percent is four times the Federal Reserve’s 2 percent target rate and more than double the cost of borrowing dollars for three months as indicated by Thursday’s London interbank offered rate (LIBOR) fixing.”) — Derivatives Deleveraging II, Debt Deflation, Gold & Bailout II — Bailout with ‘sweeteners’ heads toward Senate win — Bailout with ‘sweeteners’ heads toward Senate win — And to cap all that from Cheryl, here are two items that I found linked at The Drudge Report: Clinton: ‘It Sounds Dire, But Commerce Could Stop’ and Why propping up banks will not rescue a debauched financial system

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Josh H. mentioned that there is a compatibility glitch in the Internet Explorer 8 Beta 2 browser that prevents it from displaying some web pages, including SurvivalBlog. But Josh quickly found a “fix” for the problem. If you install I.E. 8 Beta 2, then follow-up the installation with these simple “fix” steps:

Go to “Tools”
Go to “Compatibility View Settings”
Check the box “Display all websites in Compatibility View”
Click “Close”

This setting should be a “global” setting that “sticks” so that SurvivalBlog will display properly during all subsequent visits.

Jim’s Quote of the Day:

“The money markets have completely broken down, with no trading taking place at all. There is no market any more. Central banks are the only providers of cash to the market, no-one else is lending.” – Christoph Rieger, fixed-income strategist with Dresdner Kleinwort.