Economics and Investing:

We’ll start with a bit of levity, to temper all the recent bad news: The Monster Crash. (Kudos to Richard at KT Ordnance for sending the link.)

I’ve added 90-Day and 5-Year price charts for silver and gold to the bottom of my Investing page.

Reader M.H. sent a reminder that anyone in the US that is expecting a tax refund on their state income tax should file their tax returns as early as possible this year. As states increasingly run into budget crises, some taxpayers that wait until April 15th to send in their tax forms may end up out of luck–and end up waiting for many extra months to get their tax refund checks.

Robert B. sent us this: New Gulf currency ‘Khaleeji’ poised to be Gold backed to remove ‘Riba’

From Ben H.: US Federal 2008 deficit was really about $5 trillion

RSR spotted this: Beer No Longer Recession-Proof

Items from The Economatrix:

US Economy: Housing Starts, Factory Output Plunge

The Crash of 2009 is Coming to YOU!

1 in 5 California Public Workers to be Fired

BofE Seeks Power to Inject More Money into Economy to Fight Recession

Britain’s AAA Credit Rating Threatened by Scale of Bail-Out, Says S&P

Fed Says Economy Even Worse than Thought

Growing Stocks of Unsold Cars

HUD: The Mortgage Crisis is a Jobs Crisis

Nearly 5 Million Americans Receiving Unemployment Benefits

California Legislators Finally Approve Budget

Public Fears about Troubled Economy Growing

Gold Primed to be “Mania Asset”

It’s Getting Ugly: Economist Says Hoard Gold and Scotch

The Burning Platform Here is a quote:”When I see Senator Charles Schumer of New York make a speech on the floor of the Senate saying, ‘And let me say this to all of the chattering class that so much focuses on those little, tiny, yes, porky amendments, the American people really don’t care’, I want to throttle him.”

It Will Happen (The Mogambo Guru)

Investors Rush into Gold Coins

Odds ‘n Sods:

SF in Hawaii found this fascinating web page about a secret underground ammunition factory built under the noses of British administrators in Palestine: The Ayalon Institute

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I found these personal accounts captivating: Urban Survival Stories.

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OSOM sent a link to this two-minute video clip: War Zone Detroit

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Bob at Ready Made Resources mentioned that between now and March 7th, they can offer 215 watt REC (Norwegian) and Evergreen Solar (American) brand photovoltaic power panels an unprecedented cash price of just $3.75 per watt! (Plus shipping.) This is an amazing price, considering that the prevailing price is around $5 per watt plus shipping. When you consider the state solar power incentives, plus the new Federal tax credit incentive, this makes a PV power system quite affordable. Why buy a gas-guzzling generator with a service life of a few thousand hours, when you could buy PV panels to provide self-sufficient and dirt cheap power, lasting for decades? Call Ready Made Resources at 1(800) 627-3809 for the special pricing. See their web page for specifications.

Note from JWR:

Our spin-off web site, SurvivalRealty.com (my #1 Son’s venture), has several new retreat property listings, including the first one in Australia.

Letter Re: Gun Show Report–The Full Capacity Magazine Feeding Frenzy Continues

Mr. Rawles:
I took your advice you posted last year and have been investing in some high cap magazines. I’ve bought about $2,000 worth since the [November 2008 presidential] election, and I haven’t had any second thoughts. Thank you sir, your advice is making me a tidy profit. The 75-round Romanian [RPK] drums that I bought for $135 each the day after the election are now going for $250 each. And the 31-round Glock 9 milly magazines that I paid $33.50 each for are now going for $65 each. Oh, I found +2 [magazine floorplate extension]s for those, so now they are all 33 rounders. I figure those mags will be over $100 each in a couple of months.

My real coup de largesse was this past weekend, when I went to a local gun show here in Texas. (There is a gun show just about every weekend, somewhere in Texas. Some just take a day of driving to get to!) The place was a mad house. It took 30+ minutes to stand in line just to pay to get in the door. People were buying mil surplus ammo and magazines like crazy. Basically the ammo and mags were all sold out by noon on Saturday. And most of the “black guns” were sold out buy the time they closed the doors Saturday night. Prices on magazines have basically doubled since the election.

Anyway, just after the show opened, I was scanning the tables, looking for high cap magazines–what else–when I spied a Mini-14 GB stainless, with an original Ruger-made 30-round magazine tucked up next to it. I was about to ask [the seller] if he’d sell the magazine separately, when I glanced at the gun’s price tag: $400! I just about died of an infarction on the spot. That is a great price on a fairly scarce model. (The “GB” is the LEO-sales model, with factory-installed flash-hider.) The seller–a nice old gentleman and a Korean War vet–said that he had put less than 500 rounds through it. The rifle’s looks matched the story, so I whipped out four Franklins and a copy of my driver’s license to show I was “Free, white and 21”. Anyway, we got all set (private party sale–my only way to business) to get the gun out the door, and the old timer says, “Oh wait, don’t forget the [factory shipping] box, and the magazines, they come with it.” He reaches under the table and lifts up a shoe box full of original Ruger 20s and 30s, some of them still in the white boxes! I nearly had a second heart attack. There were 11 [magazines in the box, of which] six were 30 rounders. That’s like $900 worth of magazines, these days! Later at the show I also scored four 20 round Beretta M92 “Robocop” mags, two [Steyr] AUG 42-rounders for $30 each, five AR-10 mags (for just $40 each–I’ve seen them advertised on Buddy’s board for $80 apiece!), a half-dozen “Okay [Industries]” M16 mags, and big box of nearly new [Austrian] STG[-58] FN/FAL magazines–which for some weird reason are still around $15! I bought 23 of those. I talked the guy down to $12 per, since I cleaned him out.

Speaking of FAL .308 mags, my next purchase (already agreed, by phone) will be a DSA [FN/]FAL clone. I have to drive 115 miles each way to pick it up. I found it private party, [listed] on GunsAmerica.com. I’m now tapped out, but my dad is lending me the cash. I explained the situation, and he says that it is wise to buy it. [He said:] “We’ll have a good chuckle about the price, in a year or two!”

Here is my strategy on mags: Buy what you can, while you can–while prices are still halfway reasonable. I don’t own a Beretta 92, an AR-10, or an AUG, but I figure I can always trade [for what I need] later. And I practically had to buy that FAL, since I found all those magazines. (What a great excuse to buy a gun.) My only regret is that I didn’t have the cash to buy more magazines at the show. At the rate prices are zooming, Beta [C-MAG]s will pretty soon be back to $750 apiece, just like during the [1994 to 2004 Federal “Assault weapons” and 11+ round magazine] ban. .

Thanks again for your advice, sir. Your were right about silver. You were right about magazines. And for that matter you were right about derivatives, too. The world seems more and more like the first chapter of “Patriots” every day. (What, were you psychic?) I’m taking [your novel] to heart. I got all my “beans”, and “bullets” in hand, now I just have to work on the “Band-aids”. Thank You, Sir! – Matt E. in Texas (Soon to be a 10 Cent Challenger and an Appleseed qualified rifleman.)

JWR Replies: I’m glad to hear that you stocked up. You won’t regret it. Those extra magazines will make fine barter items, both before and after a “Crunch.” OBTW, I’m not the only that is one advocating investing in magazines. The following is from a recent e-newsletter from firearms training guru Gabe Suarez:, advocating preparedness: “…Then get as many magazines as you can justify. Glock magazines are going for about $35 now. A year ago they were under $20, and dealer price two years ago was about $12! At the height of the assault on freedom known as the Crime Bill, they were selling for $125. Forget Ameritrade, buy magazines.”

Letter Re: It Looks Like the End is Beginning

James,
A few interesting things happened in the market [on Tuesday]. This wasn’t in the market, but is relevant. Hearing lots of chatter generally about things moving to “the final phase”.

“Gold is moving as the last phase of the crisis appears to have started,” said Martin Hennecke, associate director with Tyche Group in Hong Kong.

I’m assuming that the last phase starts out with gold, silver, Treasury notes, and the dollar all moving up, together. (It is quite unusual for the dollar and gold to move together, even though that’s been the case recently.) Then at some point – like a tired marathon runner that can’t keep up with the leader, the dollar quits climbing but gold doesn’t. That would be the real indication of the beginning of the end.
The Dollar drops, Treasury bonds start to go unpurchased causing yields to start soaring, tax collections come up short, States start defaulting on their bonds, Uncle Sam follows suit, and it all takes one final big swirl around the commode before collapsing.

In other metals trading, March copper tumbled 7.4% to $1.425 a pound, while March silver rose 3.6% $14.11 an ounce. March palladium added 1.2% to $219 an ounce, and the April contract for sister metal platinum rose 2.9% to $1,091.70 an ounce. I’m not even going to comment about oil today. What’s much more important is that the copper market essentially collapsed today. Copper is the industrial metal. It predicts manufacturing and production for the next 6 months to a year. You don’t build anything – certainly nothing electrical or electronic, without it. It’s used in chips, cars, houses, bridges, airplanes, tractors, and dozens of other places – you can’t even build roads without it.

A collapse of copper like this says that things are falling apart fast, and the economy has no direction to go but down for at least the next six months.. Given the Dow closing under 7,800, we should soon see a flood of bank and other financial institutions fail. It doesn’t appear that things will be changing direction any time in 2009.

Frankly, I don’t have a good feeling about our prospects of making it through the end of the year – it’s looking worse every day. Y’all might want to start thinking about moving to condition yellow. Double checking supplies, having your vehicles serviced, buying stuff by the case next time you go to the store, rather than by the can. – RSB

Letter Re: Survival Retreat vs. Neighborhood Survival — Part Deux – Galt’s Gulch vs. Idiocracy, by E.B.

Sir,

Although it is enlightening to hear of various approaches to Survivalism, I don’t believe that conspiracy theories should get much play during this very serious time we are living through. E.B. mentions the World Trade Centers collapse, vaccination, sugar, aspartame, fluoride and the AMA monopoly . While some of these may be real concerns, this is not a proper focus at a time when the infrastructure is collapsing around us. It’s like trying to investigate the cause of the Titanic sinking during the time the ship is going down. During that time period, the why doesn’t matter. What matters is making your way to the lifeboat.

Conspiracy theories are sure to be seized on by mainstream media as evidence that Survivalists are nuts. SurvivalBlog should concentrate on things we can do something about right now – Beans, Bullets, and Band-Aids.

On Monday, SurvivalBlog linked to the excellent and revealing speech by Dimitri Orlov: Social Collapse Best Practices. Orlov said that “at the end of 2008, I announced on my blog that I am getting out of the prognosticating business. …. collapse is well underway, and now I am just an observer.” He made the point that now is the time to deal with the basics: “Food. Shelter. Transportation. Security.”

Orlov is right. Even though most of us probably think the government is corrupt, that can’t become the focus. Practical preparedness is what really matters right now. Let’s keep SurvivalBlog on track. – K.L. in Alaska

JWR Replies: Your point is well-taken. While I don’t agree with everything that E.B. espouses, I do my best to accommodate a variety of viewpoints in SurvivalBlog, some of which are out of the mainstream. FWIW, you would not believe the sheer volume of whacko e-mails that I get, that make E.B’s postulates seem quite tame by comparison. Nearly every day I get rants on everything from Gray Aliens building massive underground bases and tunnels, to sightings of boxcars equipped with shackles. These are mostly from the “I believe in everything” Coast-to-Coast AM radio show crowd. Discernment seems to be a scarce commodity in some circles. You name, I get it. (And then I get follow-up e-mails, asking why I didn’t post their earlier e-mails, inferring or outright accusing me of being part of an organized Cover-Up Conspiracy.) Most SurvivalBlog readers don’t realize how much nonsense and blather I have to filter out.

I chose to post E.B’s letter intact. I’m sure that I get grief about it, but he makes some valid points and in my opinion he deserves to be heard, at least regarding his preparedness strategy.

Editor at Large Michael Z. Williamson Adds: I’d just like to point out that diesel fuel does melt “structural steel”: Structural steel is low carbon alloy (1015, 1020) that every blacksmith uses, and that most people wind up deforming in their fireplace as the grate ages. I’m not going to comment on any other Sep 11 theories. One can choose to believe the engineers of the world, or believe they’re all part of a conspiracy. I’m just going to point out that “structural steel” will only resist fire in your house for a few minutes before failing. 1,000 degrees Fahrenheit (attainable in any fireplace, barbecue or structure fire) will reduce its strength by 50%. At 2,000 degrees Fahrenheit (easily found in the center of most fires) it melts into decarburized slag. It is not a magic barrier against bullets or flames.

Economics and Investing:

Brett forwarded this item: Depositors turned away from Stanford banks

Garth S. sent this New York Times news story link: Laid-Off Foreigners Flee as Dubai Spirals Down. Garth’s comment: “At least [in America] we don’t have debtors prison.”

From Todd S.: Swift, steep downturn crisscrosses globe

G.G. flagged this: Publishers See Red, Magazine Ad Pages Down 21.5% in Q1

Thanks to Robert B. for sending this: Sales Tax Time Bomb Explodes as Consumption in Freefall

The Drifter sent us a link to this piece by Mish Shedlock: The Nationalization Train Has Left The Station

FloridaGuy flagged this: Gold hits record against euro on fear of Zimbabwean-style response to bank crisis (JWR Adds: The current “strength” of the US Dollar is in actuality just a manifestation of the weakness of the Euro, since European banks are in even deeper Schumer than American banks. It is all relative. All the paper currencies are on the same path, but some are just moving more rapidly down the path to destruction than others. For safety, buy silver and gold. Get out of paper currencies and any investments denominated in those currencies. This is the age of tangible investments!)

Items from The Economatrix:

Obama Unveils $75 Billion Mortgage Relief Plan

EU’s Battle with Depression

Baby Boomers: Your Generation’s Crisis Has Arrived

US, UK, Euro Banks Face Collapse: Global Banking System Insolvent

Eastern European Economies About to Explode in a Chain Reaction of Debt Default “An economic crisis is quickly turning into a political crisis. Riots have broken out in capitals across Eastern Europe. Mr. Geithner had better be paying attention.”

World Stocks Tumble as Bailout Confidence Fades

Fed Banker Warns of Deflation

In Times of Crisis, Never Forget the Value of Gold

The New Currency Trade: Gold vs. All Else

Brzezinski: H*ll, There Could Even Be Riots

Bad News from America’s Top Spy

Oil Slips Below $35 as Global Markets Tumble

Stocks End Day Flat After Obama’s Housing Plan Unveiled

Odds ‘n Sods:

FloridaGuy sent us this: Camera convicted him but raised battle over privacy

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Paul A. spotted Las Vegas, Nevada article: Deadly home invasion near Lamb & Las Vegas Blvd. this is reminiscent of the Phoenix news clip that I featured last week. Gee, perhaps I ought to start a running tally. Here’s a start: Armed Homeowners 2, Home Invaders: 0

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Our thanks to Bobby C. for sending this: Mississippi Passes Regulation Protecting Gun Owners During Martial Law

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A bit more of our privacy crumbles away: Anonymous Caller? New Service Says, Not Any More (A hat tip to KAF for the link.)

Jim’s Quote of the Day:

"What has been, what ever must be, the consequence of such a sudden and prodigious inflation of the currency? Business stimulated to the most unhealthy activity; a vast amount of over production in the mechanick arts; a vast amount of speculation in property of every kind and name, at fictitious values; and finally, a vast and terrifick crash, when the treacherous and unsubstantial basis crumbles beneath the stupendous fabrick of credit, and the structure falls to the ground, burying in its ruins thousands who exulted in the fancied security of their elevation. Men, now-a-days, go to bed deeming themselves rich, and wake in the morning to find themselves stripped of even the little they really had. They count, deluded creatures! on the continued liberality of the banks, whose persuasive entreaties seduced them into the slippery paths of speculation. But they have now to learn that the banks cannot help them if they would, and would not if they could. They were free enough to lend their aid when assistance was not needed; but now, when it is indispensable to carry out the projects which would not have been undertaken but for the temptations they held forth, no further resources can be supplied." – William Leggett, Plaindealer, December 10, 1837

Notes from JWR:

The high bid in the SurvivalBlog Benefit Auction is now at $400. This auction is for a large mixed lot, which includes::

1.) Another “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.

—

Today’s first post is a re-post (with permission) from Étienne de la Boétie’s blog, The Discourse of Involuntary Servitude. OBTW, it is noteworthy that when he posted it to his own site, he used a photo of a Survival Realty property in northern Idaho to illustrate the rural retreat concept. He couldn’t have picked a better picture, since that property typifies the ideals of rural retreats: isolation, defendability, and self-sufficiency.

Survival Retreat vs. Neighborhood Survival — Part Deux – Galt’s Gulch vs. Idiocracy, by E.B.

Introduction
This is a response to a previous article written by the esteemed Dr. Richard of the Virginia Prepper’s Network. Dr. Richard and I agree completely on a great many issues but disagree on the issue of the Survival Retreat vs. Neighborhood Survival. Here are my thoughts on the issue:

Dr. Richard makes some good points with respect to the desirability of an informed and prepared neighborhood, but in the end it all depends on your particular neighborhood and neighbors. Because I saw the collapse coming in 2005 I sold my home in Northern Virginia at what the Washington Post called the absolute peak of the market and put the proceeds into physical gold and silver when gold was trading around ~$400 an ounce and silver at ~$7. BTW, the guy who bought my home tried to sell it less than a year later for significantly less and could find no buyers. My goal was to move to low cost Austin, Texas where I could be near my dad’s ranch which I could then get prepped to survive the coming economic collapse. Unfortunately my wife thought I had gone completely insane which along with other disagreements on the health of our children (She believes in vaccination, sugar, aspartame, fluoride and AMA monopoly medicine and I don’t) led to a divorce. Now I rent a single family home to be near my ex-wife and kids where I can spirit them to safety when the SHTF. While I have never been to Dr. Richard’s neighborhood the detailed description (cul de sac, all single family homes on relatively large lots, high income/ high IQ neighbors in a development of less than 400 homes in a somewhat rural area) sounds infinitely more survivable than mine.

My situation is much different. My neighborhood is a mix of single family homes and townhouses with a much greater density than Dr. Richard describes. The neighborhood is lower income / lower IQ as well. There is an apartment complex about a mile away and I once found a cocaine baggie in the parking lot while jogging through it one day. Unfortunately because I am so busy I haven’t met as many of my neighbors as I would like and the ones that I have met are essentially completely clueless to the realities of the world. My neighbor with the most raw intellectual horsepower is a software architect in IP security but he still hasn’t figured out that fire can’t melt structural steel and giggled when I tried to explain the realities of 9-11. He is morbidly obese, addicted to sugar and nicotine, and completely unarmed. Not exactly the guy you want to have your back fending off looters and brigands. My second smartest neighbor is an engineer for an IP hosting company. I spent 30 minutes one day taking him through the physics of WTC 7 and how 47 story modern steel framed skyscrapers don’t collapse completely and symmetrically into their own footprints at freefall speed defying the laws of physics. I thought I saw a glimmer of understanding but I never heard back from him. I am assuming he went back to the TeeVee set. When I jog through the neighborhood at night the street is lit up with the glow of flat screen mental prisons.

Anyone that has ever unplugged someone from the matrix understands how difficult and time consuming it can be to educate and free a single mind. I have a good friend who is an entrepreneur/small business owner and has held VP level positions at international networking companies. I have been working on him for years and even after his son had a febrile seizure 24 hours after getting vaccinated he is mad at me for trying to warn him and continues to see the same doctor that potentially crippled his son. My ex-wife has P.hD and I can’t get her to stop giving our kids fluoridated water even though the practice is opposed by 14 Nobel Laureates, 2,100+ health professionals, and the EPA’s own scientists through their union. If I can’t convince my own ex-wife to quit giving her kids water “medicated” with a chemical used as rat and roach poison which has been linked to lower IQ in 23 peer reviewed studies from around the globe then how I am going to educate and convince dozens/hundreds of acquaintances and strangers on the realities of the world.

So, since neighborhood survival is not an option for me then creating a survival retreat with a self-selected group of individuals is my #1 strategy for survival in an economic collapse. Compare some of the qualities and skill sets of our group and those we are speaking with vs. the TeeVee bums in my neighborhood.
• A general contractor who is a firefighter / EMT in his community with skills in general carpentry (framing, form, and trim), basic electrical, plumbing, HVAC, masonry, roofing, and siding. Skilled in basic small engine repair, hand tools, and appliances. He is taking classes in sustainable agriculture and automotive repair.
• A retired naval Commander (helicopter pilot) with special operation experience that has been working on his retreat for years.
• A world class software and information security architect.
• A C-level executive and former military intelligence officer.

All are completely aware, completely awake, completely armed, with good to excellent preps and are already in high gear improving their skills and doing what it takes to get ready for the coming collapse.
Now add the advantages that a remote survival retreat offers over attempting to survive in an area populated with completely clueless starving TeeVee bums.
• Security – Hidden from looters and brigands who would be more than willing to kill for your stored food and supplies.
• Rural Location – Self-sufficient agriculturally with farmers, dairymen, and cattle ranchers. Plentiful wild game and plentiful wild edible plants.
• Self-selected compatriots – Honest, trustworthy companions that are completely prepped for the collapse and have a diverse blend of excellent skills to weather the storm.
• Designed for a collapse – Wood stove, solar power, well water, fruit trees already planted, etc.

So while I wish Dr. Richard the best of luck I am headed to Galt’s Gulch with other members of the intelligentsia. It doesn’t mean that I am not willing and/or trying to help my neighbors, in fact I am having a large number of them over next week to try to explain the realities of the coming collapse but at the end of the day I must protect my family and myself and a self-selected group of intelligent people awake to the realities of the world secure in a remote retreat represents the best odds of survival.

Even if you are going to bug out here are some tips to help the folks who must prepare for themselves:
Educate, Educate, Educate – Give DVDs, send links to web sites like this, Virginia Prepper’s Network, SurvivalBlog, WhatReallyHappened.com, InfoWars.com, and SteveQuayle.com. When you pass along DVDs specify that the recipient must pass it along to someone else and specify that the next recipient must pass it along as well.
Share your Bounty and Improve Your Own Chances – I am sharing some of my storable food with a neighbor with the caveat that we would share when the SHTF. If I successfully bug out then they keep all the food for themselves. If I am trapped in the neighborhood then I have improved my chances for survival with diverse food stores.
Arm Them With Knowledge – Take your neighbor to the Appleseed Project and turn a rifle owner into a Rifleman.
Plant an oversize or community garden – Share the costs of sod, seeds, and the rental of a tiller.
Store Extra Preps for Friends and Charity – I have stored extra food for charity and even stored items like diapers and wipes for a low income couple who live in my neighborhood. I have cached food, money, and silver for the employees of my business as well in a location they can access in an emergency.

Letter Re: Real World Observations on Fighting Crime and Criminals

Greetings James,
The recent article by Eli was very informative but I would like to ad one comment regarding his section referring to burglaries. I believe what I’m going to mention here is commonly overlooked as I was guilty of it myself.

Eli wrote: “Go and look at your front door. Find your lock plate. When a door is forced, this is the part to give, with the plate coming loose and breaking the trim. Get a screw driver, and remove one of the screws. Realize that this is what is securing your front door. Now go buy longer screws, and replace them immediately.”

While this is very important,….DO NOT overlook the hinges. Most hinges are secured with 1″ screws (or shorter). My wife and I had our house broken into about 8 years ago. I had done such a good job with the strike plate and the 3-1/2″ screws that when the thief finally was able to break the door down, it was obvious that it gave way at the hinges. The dead bolt and strike plate were still mostly intact but the hinges had torn out of the jamb. The entire door was laying in our bedroom when I came home to my wife and the police standing in our bedroom. (We had a door that lead from our bedroom to the back patio.) Also, if it wasn’t for the monitored security system, our whole house would have looked like our bedroom.

From that point on, everywhere we’ve lived, I not only heavily re-enforce the strike plate but the hinges as well. Of course no door is “forced entry proof”, but this will definitely slow them down. And, if re-enforced properly, they may just give up without actually getting in. Best Regards, – SRN

Letter Re: Hardening a Home Against Small Arms Fire

I found a product called Grancrete, that when laid down with a trowel and embedded with multiple layers of fiberglass can be made bullet proof.

I was originally investigating this stuff because it was invented for nuclear waste encasement I thought it could be used for a little extra protection. After talking with a very knowledgeable staff I found out that it has never actually been used for nuclear encasement but they have completed ballistic tests and it was resistant up to a .30-06 with just a two-inch layer.

I do believe that people could easily retrofit a house [with Grancrete] to add protection. Maybe not to protect the entire house but at least a few feet strip around windows and doors that could be done aesthetically. most people don’t realize how easy it is to to get shot through the wall.

I also found a much easier way to make sandbag walls at a greenhouse building web site. Here they sell rolls/ tubes of sand bags. they make an easy fill-in-place solution and and direction on how to build with them. Thank You – Danny

Economics and Investing:

In a recent edition of his Reality Check e-newsletter, my mentor Dr. Gary North mentioned this alarming piece posted in the Not A Sheep blog: The Disappearing £16.3-trillion. In the age of the Internet, it has become difficult for the Powers That Be to spike a news story!

Laura and Garth were the first of a dozen readers to send this link: Kansas suspends income tax refunds, may miss payroll

Ben H, sent this link to an interesting (and frightening) article at the Von Mises Institute: Printing Like Mad

I noticed that spot silver and gold prices are solidly back on the bull market track, at seven month highs. To those that were castigating mea few months ago, for “giving bad advice”, all that I can say is: “I have my doubts that your stock portfolio is going to do as well as my silver for the next five years.” And to anyone that is dawdling, waiting to see “direction” in the metals markets, you are about to miss the boat. Buy on the dip days.

Items from The Economatrix:

Obama Signs Stimulus and Dow Plunges 300 “The Dow closed at 7552.60, only a fraction of a point shy of the recent low of 7552.29 Nov. 20, just after Obama was elected. The market now is down more than 2,000 points since Obama was elected, when it closed 9625.28 Nov. 4.”

GM Seeking Up to $30 Billion More, Axing 47,000 Jobs

Worst is Yet to Come for Americans

Lloyds Facing More Write-Downs, HBOS Losses Mount

Nationalizing 401(k)s

Little-Known Agency that Insures Pensions of 44 Million Workers Braces for Recession Fallout

Automaker Bankruptcy Looms

Eastern European Currencies Crumble as Fears of Debt Crisis Grows

America’s Emptiest Cities

Feds Provide $429 Million to 29 More Banks “The Treasury Department says the capital infusions bring the total amount the government has invested in banks to almost $200 billion.”