Economics and Investing:

Reader Brian S. sent this: Dutch DSB Bank Nationalized After Bank Run By Clients. “The Netherlands’ central bank said Monday it has taken control of DSB Bank NV after clients began a run amid fears the regional lender might collapse.” Brian notes: “People can [presently] only take 250 Euro per day from their accounts.”

Icahn: Risk of Double Dip, Investor ‘Bloodbath’. (Thanks to Flavio for the linkio.)

A piece by Charles Hugh Smith posted over at Housing Storm: Deflation or Inflation: Who Cares?

Analysis from Greg Fielding (also at Housing Storm): Did the FHA make bad loans with taxpayer money to prop up home prices?

I found an an interesting video of a Jim Sinclair interview by David Williams in South Africa: Gold & Inflation. Sinclair predicts gold at $1,650 per ounce by January, 2011. (This was linked at the Total Investor blog.)

Items from The Economatrix:

California Budget Already in the Red 10 Weeks After its Passage. California unemployment hit 12.2% in August

US Dollar Falls as Skeptics Buy Euro, Aussie

Derivatives Lobby Links with New Dems to Blunt Obama’s Plan

China Buys The World


US Has Miles to Go With Its Mortgage Modification Plan


FHA May Be Setting Up Repeat of Housing Bubble

Many Jobless Workers Could Lose COBRA Subsidy. 65% subsidy will end on December 1st if not extended

Will Social Security Survive the Recession? Rep. Jason Chaffetz, R-Utah, has written that when debts to various government trust funds are added to the anticipated 2010 budget deficit, the U.S. debt burden will reach nearly 100 percent of gross domestic product in 2010. Moreover, Rep. Chaffetz estimates that when unfunded liabilities of more than $100 trillion from Social Security, Medicare and government employee pensions are included, national debt is several times larger than GDP.

Citigroup Tries to Shed $100 Million Man “Superstar trader a political liability now that bailed-out firm is 34% owned by feds”

Orange Juice Jumps 10% on Crop Report

Gary North: Banksters Bait and Switch Fractional Reserve System

Gary North: Fractional Reserve Banking System Basis of Bankster Fraud

FHA Raising Concerns with Policy Makers



Odds ‘n Sods:

GS in the State of Jefferson sent us this: Schwarzenegger signs ammunition sales bill. A thumbprint and detailed personal information before completing an ammo sale? BTW, this new law includes .22 Long Rifle ammo! What insanity. Once again, my advice to SurvivalBlog readers is to get out of California. It is a lost cause. Vote with your feet!

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Exercise can extend survival even in ‘oldest old’ (Thanks to Roxie for the link.)

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Ralph U. sent this one: Cold temperatures threaten Idaho seed potato crop



Jim’s Quote of the Day:

“Every man who goes into the Indian country should be armed with a rifle and revolver, and he should never, either in camp or out of it, lose sight of them. When not on the march, they should be placed in such a position that they can be seized at an instant’s warning; and when moving about outside the camp, the revolver should invariably be worn in the belt, as the person does not know at what moment he may have use for it. – Randolph B. Marcy, Captain, U.S. Army, The Prairie Traveler, 1859





What Recovery? Find Yourself a Recoveryless Job

For more than a month, the mainstream media has been yammering about an economic recovery. Chasing phantom “good number” statistics amidst an onslaught of otherwise bad economic and global credit market news, the Wall Street cheering section is desperately seeking some news that the current recession is coming to an end. They talk about “the recovery in progress”–almost a fait accompli. They have been so good at this that they have fooled some investors into putting their sidelined money back into the stock market. What a masterpiece of disingenuous grandstanding. But the sad truth is that there is no genuine recovery in progress. Perhaps there will be a minor economic boost, generated by the huge bailout spending, but the bottom line is that we are in the midst of a major recession. And unlike the recessions in the past 50 years, this one is not based on just market cycles, but rather caused by a systemic failure of the global credit market. So any attempts to re-inflate the bubble with new credit (based on artificially low interest rates and bailout “programs”) are bound to be unsuccessful. This recession cum depression won’t end until malinvestment is driven out of the system, and trust in a fully transparent system of credit that backs genuine, truly marked-to-market tangible assets is restored.

America’s debt bubble that emerged from over-inflated real estate is at the root of the current mess, just as it was in Japan in the 1980s. (In their case, it was commercial real estate, in parts of Tokyo.) The Japanese government has tried similar measures (mostly in the form of massive public works programs and artificially low interest rates) for 25 years, and they still haven’t pulled out of their economic doldrums! But consider that our real estate bubble was much, much bigger, and that unlike Japan, we are a net-debtor nation. (Japan has traditionally been a fiscally-conservative nation of savers.) So how can we expect to do any better at “recovery” than they did?

The Obama administration has two potential courses of action that it can implement–through Treasury Department action, in concert with the Federal Reserve banking cartel’s open market committee–to attempt to emerge from the current mess. Neither of these are appetizing:

  1. Continue keep interest rates artificially low. This, however, will create a huge dollar carry trade market that will be the source of laughing derision, internationally. This course of action will eventually destroy the US Dollar as a currency unit.
  2. Allow interest rates to rise, but that will likely choke off any economic growth. And regardless of the path chosen, the current administration (like its predecessor) seems committed to profligate spending on umpteen bailouts. These bailouts are funded by “out of thin air” dollars, creating massive budget deficits. In the long run, this dollar creation will prove to be highly inflationary. But there will probably be a time lag, since the effects of the continuing asset deflation is masking the ongoing currency inflation. I anticipate substantial inflation to become evident, circa 2011 and in subsequent years. It could be very nasty, so shelter yourself from it, as I’ve previously suggested in SurvivalBlog.

My suspicion is that the BHO administration will opt for the “weak dollar” route, since that will be the least painful of the two options. The sad news, however, is that ultimately neither option will solve the underlying problem, and hence the US economy is doomed to a deep 10+ year depression. During this period we will witness (and endure) massive unemployment, high crime, dislocation, rioting, repatriation restrictions, and substantially higher taxes. With these in mind, take the steps necessary to protect your family’s safety, and your assets.

The talking heads on the finance and investing shows would have you believe that an economic recovery, or at least a “jobless recovery”, is just around the corner. Do not be deceived. If any of you reading this are still under the deceptive spell of the CNBC rah-rahs and believe that recovery could be underway, then just take a look at this chart of scheduled mortgage interest rate resets, which I’ve previously mentioned in SurvivalBlog. As you can see, the oft-cited peak in subprime mortgage interest rate resets is now behind us, but the peaks in Alt-A, and Option Adjustable (aka “Option ARM”) rate resets are still ahead of us. Thus, in actuality, the worst is not yet over. We are just in a lull between two tsunami waves.

With the exception of a few newcomers, SurvivalBlog readers are already well-informed on the foregoing facts, so I won’t belabor these points. Instead, I’ll move on to some practical issues that will have some benefit to you. Lets talk about jobs, and to be more specific, your job.

A Recoveryless Job

Even if you are currently employed somewhere in a “safe and secure” job, keep in mind that there are no absolutes. You could have a small town civil service jo, for example at a water treatment plant. But what if the city or county that you work for goes bankrupt? You could be laid off in a heartbeat. The phrase “under new management” often means firing you, and hiring the nephew or old pal of the new boss. The fictional character Sarah Conner said it best: “No one is ever safe.” So hedge your bets.

I recommend that you develop a second stream of income through self-employment. Typically this can be found in a moonlighting service job, or a home-based mail order business.

I’ve often encouraged even my rural consulting clients to develop a second income stream. Why is this important? “Living off the land”-style self sufficiently is an admirable and commendable goal. But even if you are living truly “debt free”, you will still have property taxes to pay. That means that you will need a recession/depression proof revenue stream in the event that you lose your primary job.

Successful home-based businesses usually center around unfilled needs. Find something that your neighbors buy or rent, or service that they “hire” on a regular basis that currently requires a 40+ mile drive “to town”. Those are your potential niches.

A successful recession-proof home-based business is likely to be one where the demand for your goods and services is consistent, even in a weak economy. These include septic tank pumping, home security/locksmithing, care for the very young and the very old, and escapist diversions such as DVD movie rentals. (It is noteworthy that the movie industry was was one of the few sectors of the economy that prospered in the 1930s.)

One market segment that prospered in the Great Depression of the 1930s was repair businesses. Obviously, in hard economic times, people try to make do with what they have. So repair businesses are a natural. If it is some small appliance that you could repair that could be mailed from and back to the customer, so much the better. (That way you could have a nationwide business, rather than just a local one.) This might include: DVD player repair, laptop computer repair, and so forth.

Its a Dirty Job, But Someone Has to Do It
If you want to work for someone else and have that be recession-proof, then consider the dirty jobs. These are some of the least likely to suffer a layoff. In Japan, these are called the “”Three-K” jobs: kitsui (“hard”), kitanai (“dirty”) and kiken (“dangerous”). If you are willing to take on any of the Three K jobs, do cheerful and hard work, and have exemplary attendance, then you will likely have a job that will carry you all the way through a deep recession or even a depression. If times get truly Schumeresque and you get laid off, then please be willing to “think outside the box”, and consider taking a Three K job. Some of these are low level city and county payroll jobs. And by low level, I mean things like sanitation worker, animal control officer, sewer technician, solid waste transfer station worker, highway maintenance worker, and so forth.

Think about it: A steady job beats no job. Don’t let your family starve, or end up homeless. There is no shame in accepting good old-fashioned hard work. If you take a job that brings in only one half of your existing income, consider that you’ll actually come out ahead of any of your contemporaries that are laid off more than half of each year. Further, you will have uninterrupted benefits, such as health insurance, that they will also lack. A menial and low-paying job is better than no job.

Some suggested employment possibilities:

1.) Mining and manufacturing processes that because of shipping expenses cannot be practicably be moved offshore. Coal mining is a good example.

2.) Service industry jobs that are essential and non-discretionary. Let me reduce this to a few key examples, so that you’ll know what to avoid:

Essential and Non-Discretionary Non-Essential and Discretionary
Mortician Pilates Instructor
11B Infantryman Hairdresser
Septic Tank Pumping Truck Driver Manicurist

3.) Retail sales (face to face, or mail order) of crucial items.

4.) Retail sales (face to face, or mail order) of comfort items. In the midst of an economic depression, people will crave escape. Movie DVDs are a good example.

5.) Military service. Most people don’t think of the armed forces as service industries, but that is essentially what they are, on a national scale. In the military you are sort of a security guard for the real Mall of America. Or think of it as a lead delivery service. My father was an Air Force instructor pilot, back in the days of T-33s. He summed up his service when he told me: “I was a glorified bus driver, burning up lots of Uncle Sam’s jet fuel. I did a great job of defending miles and miles of cactus.” Thirty years later, I served as an Army Intelligence officer. It was great fun at the time, but in essence, I was just a detective–or more precisely the manager of detectives–that worked for one of the world’s biggest detective agencies.

6.) Repair work.

Be Flexible and Proactive

The coming years will be difficult ones, globally. If you are risk of a layoff, then hedge your bets by developing a second stream of income, now. And if you are laid off, do not hesitate. Do whatever it takes to find steady work, even if means moving, or taking a lower-paying job. Don’t just wallow in self-pity and draw unemployment insurance. be proactive and do something!



Experience With Bicycle Commuting and Touring, Hammocks, and Stoves, by David in Israel

Since June of this year when my new Dahon Speed 8 folding bicycle arrived I have greatly increased my bicycle mileage typically doing about 120 miles a week commuting instead of taking the bus in. The Dahon is a 20″ wheel folder so I have the option of bagging it up throwing it in the back seat or trunk and catching a ride with friends or taking the inter-city bus if I am tired, this hitch-hike-ability could be an important to a survivalist trying to cover long distances, perhaps even beating out the larger harder to stash 26″ wheel folding bikes. The better Dahons come equipped with Schwable super long life tires, they have significantly longer wear life than most bicycle tires. Since this bicycle is ridden around four hours a day comfort is key, a quality narrow spring seat, alloy pedals, hand grips and multi position “horn” bar ends were upgraded since these were the places that my body interfaced with the machine. Good fenders and aluminum cargo racks front and rear let me carry my backpack on the front with the extra pack strap length secured with recycled inner tube rubber bands. I had straps added to my pack to secure my pack onto the front rack where I feel I have the best control. A useful feature of some Dahons is the seat post air pump which gives a long stroke floor pump inside the long seat post shaft. As for spares I carry an extra tube, LED headlight, tire levers, Rema Tip Top patches(by far the best), and a Crank Brothers folding bicycle multi tool, additionally I have 4mm and 6mm Allen wrenches on my key chain next to my Kryptonite bike lock key. During regular times I wear a bluetooth headset for my mobile phone and white LED forward headlamp and red rear LED flashers attached to the helmet, a yellow reflective safety vest makes me even more visible to drivers. A Glock Model 17 and two spare mags in a padded Michael’s of Oregon (“Uncle Mike’s) holster on my heavy leather belt is comfortable and has shown no complaint to my regular sweating on summer rides. During a two hour afternoon ride I consume about two liters of water and occasionally gulp down some salted honey I keep in a sports gel flask for an extra boost before a hill. Regular mountain commuting will wear on your brakes, a complete set of brake pads is a good idea to keep in your repair kit.

I have made several five day to one week trips in the last few years and in addition to the regular stuff I carry for commuting I also include:
-Stuffable semipermiable rain/wind jacket
-Two pair of wool socks
-Hennessey asym hammock
-MSR Whisperlite International stove
-Kerosene fuel bottle
-MSR cook set
-Military nesting silverware
-MMR-40 40 meter QRP kitted radio
-15deg F lightweight sleeping bag
Everything fits in a mountaineering day pack.

I find that beans and lots of rice supplemented by eggs for dinner and fresh fruit especially bananas for snacks keep me running strong all day if I am careful to pace myself, I also try to remember vitamins. Since I know that I will be eating large portions it makes sense to pack larger camp pots. Strong coffee seems to boost my cycling strength especially when traveling uphill, but a person should know how late in the day they can drink caffeine before it affects their quality of sleep. Caffeine also causes you to urinate more requiring additional water supply. Along with the Norwegian and Swedish armies, I use the fold-a-cup coffee cup. It is unbreakable and flexible.

Hydration is key, for commuting my regular 2/3 liter bottle and a 1.5 liter soft drink bottle is enough for commuting 1.5 to two hours with about 200 meter climb in the hot sun. More water bottles for longer trips can be carried in tight panniers on the rear rack. There are times where a very dilute fruit juice makes gulping down water easier. I refill my bottles at every opportunity. I carry an Aquamira filter squirt bottle for my bike bottle and purification tablets for using questionable irrigation or spring water.

I have previously in SurvivalBlog extolled the virtues of kitting together the very small (2/3 the length of a 600 page paperback book) and inexpensive MMR-40 radio. It provides 6 watts for CW or SSB PSK-31 digital mode has a range of up to several thousand miles [with favorable ionospheric conditions].

The Hennessey hammock is a wonder of simple engineering. The asymmetrical design lets a large person lay off-axis on his side without being forced into the parabolic curve of the hammock. Entry is through a slit in the bottom which snaps shut from the weight of the camper and a tough bug net is sewn to the whole hammock. There is a cord keeping the bug net off of the campers face hung from this is a mesh pocket for your glasses, phone, or headlight. The rain fly when attached kept me warm and dry through a few downpours, but if there is a possibility of strong wind the rain fly cords should be staked or weighted with water bottles else they might blow a flap of rain fly open to the rain depending how the hammock is hung. If it is cold more insulation or a sheet of closed cell foam will make up for the compressed insulation heat losses on the bottom of the hammock. The Hennessey hammock also makes a nice swing seat, if you have no big trees available. The instructions also show how to use the hammock as a one man tent using walking stick or saplings. As with any hammock be sure you are tied into live trees and not dead rotted snags which could fall and crush you. On the upside you need not worry about how steep the incline or rockiness of the terrain as you are hanging suspended.

I used to carry a small Triangia cook set including a brass alcohol stove, which is a tougher sealable version of the DIY soda can stoves. I have found these to be useful in their weight but the hazard of a tip over burning fuel spill combined with the price of alcohol fuel at the paint store lead me to keep this for ultralight expeditions and instead to use my MSR stove. The MSR Whisperlite is designed for easy field maintenance as are most MSR products. The one main weak point, the pump stop, which has failed in a non critical way on all of my older MSR stoves, could allow foreign objects into the pump mechanism or loss of the piston, this has been upgraded to a much stronger design in recent years by MSR. I use kerosene due to the higher energy content over gasoline and the cleanest flame of fuels easily available to me in Israel. I carry a small bottle of alcohol to prime the stove, this leads to much less carbon accumulating on the stove, and quicker startups. (A tablespoon of alcohol fuel into the primer cup is enough to prime the stove most of the time.) Using the wind guard (very heavy aluminum foil) wrapped tight to keep the heat in the stove it primes and is ready to cook much faster, then the wind guard keeps the heat on my pots. I must also mention that MSR makes a repair/service kit with most of the parts and tools to fix and maintain your stove even on extended outings. – David in Israel



Three Letters Re: Heating With Wood

James Wesley,
That was a good informative article by SGT B., however there was one glaring omission in the safety section : “Which brings me to the always wear appropriate safety gear rule. Always do. Period. Long sleeves and pants, boots, gloves, helmet with a face-guard or safety glasses, hearing protection.”

He didn’t mention Kevlar chainsaw safety chaps, which jam a chain in milliseconds are now considered required for wood cutting, one moment of inattentiveness and your thigh, shin, etc, can be hamburger. The least expensive, yet best ones out there are from Labonville.

Remember chainsaws don’t just cut flesh , they tear it! There is a youTube video available for those who want to watch that shows that, thankfully demonstrated with butchered meat, not people. Sincerely, – Wayne B.

Sir,
I’d like to add to Sgt B.’s information. After doing all that he discusses for 40+ years, I would add the following: I put wood in my basement where I have a woodstove. The critters did emerge as he mentioned. I used Zodiac Advanced Insect Spray and that wiped them all out very quickly. A cat takes care of four legged types. I put wood in the basement for when I’m too lazy, tired, or the the weather is just plain nasty. Otherwise, I haul it in as necessary leaving the inside wood for those times mentioned.

Woodstoves: you really don’t need to spend a fortune to get some decent heat. My basement is all masonry. The block and concrete soak up lots of the heat (versus a finished basement). Still, my inexpensive little woodstove gets that basement to 70 degrees. I got one from Northern Tool & equip. Sure, a much more expensive all cast iron or fancy one would get the basement and wood floors above a lot warmer but this stove only set me back a few hundred and arrived at my doorstep via freight. Do your homework if you are new to woodstoves. Buying used is okay if you can verify that it’s safe. Check for any cracks and if the gaskets / rope are ok. One method of verifying if the gaskets are ok is to place a dollar bill one the backside of the door, close the door, see if the dollar slips out when you pull it. Gaskets kits are cheap and easy to replace. My brother bought a used/antique potbelly type and it has been in use for years.

Traditional fireplace / fireplace insert: The one I just pulled out was very attractive but they sure waste a lot of heat. I finally purchased a top dollar insert as a replacement last year for the ground floor of the house and it paid off immediately in terms of having to bring in wood, using up your wood pile(s), & time/labor. This replacement once hot, remains so all night. I was a great investment.

Log splitters: I’m on my second one. The first was a 20 ton and it was a workaholic. I sold it in one day. It was about 12 yrs old and still good to go. In 12 years I did replace the engine once and the detent valve. My new 37-ton spilts everything I feed it. You may have a hard time finding something it can’t split. I had to use my front end loader to push the heaviest of oak under it and the splitter had no problem. This was another Northern Tool and Equipment purchase.

Chainsaws: Useful but dangerous. Be careful. Read the safety instructions if you are new to these items. If you are going to have something go wrong, it’ll happen so fast that you won’t be able to stop whatever mistake you made. I have two – a 15 year old lightweight 14″ Poulan that still gets the little stuff done and a 20″ Husqvarna that can handle just about anything. The best accessory item when working with a chain saws is a wedge (plastic, not the steel wedges used with manual splitting…) to prevent pinching of your blade/bar. I recommend using high test gas as 2-cycle engines prefer it for long term engine performance. I also purchased an electric chain saw sharpener which has paid for itself several times over. I can do it manually in the field also and you should be equipped for that anyway. Extra chains make life easy. If the saw is going to sit 11 months of the year, you’ll have starting problems. [Use gas stabilizer and] start your 2-cycle engines monthly, warm them up and they’ll be kind to you when you need it.

All things wood heating: I enjoy the outdoor time doing all this. It’s both exercise and refreshing cold weather outdoor time. Note: it does require time and labor but the payoff is worth it. I cut my oil heat consumption back to one-third of the previous year’s averages. Now I can spend more money on more wood cutting stuff. – Flhspete

 

James,
That was a good article on finding wood, but I would like to see you make a special invitation to a chimney expert or someone else with similar expertise to write an article on wood stove safety. That is something that is often overlooked, or just not understood, often with disastrous consequences.

My wife and I started our “back to the land” voyage back in the 70’s with a small homestead in the Ozarks and for the next 10 years we heated only with wood. During that time we saw our neighbors down the road lose an infant daughter to smoke inhalation during a bad fire and our best friends came home on Christmas eve to find nothing left but the foundation, their house had burnt to the ground. Both were caused by skimping on chimney installations. Anyone who has lived in the boonies probably has similar stories to tell. It’s okay to scrimp and save on a lot of things, chimneys [with regular chimney cleaning] are not one of them. You have a wild beast under partial control inside your home, one tiny mistake and it can escape and destroy your home and kill you. I don’t mean to unduly scare people but I would like to see people have the appropriate amount of respect for the hazards they’re taking on. Everything has to be done right up front and maintained properly to keep you safe.

BTW, the biggest drawback to wood heat is just the fact that in the winter you can never be away from home for more than 16 hours or so or the house will freeze up. No weekend trips and if the rig breaks down it adds another level of urgency to getting home. If possible, it’s great to have a small emergency propane heater you can set to 45 degrees and run off a 100 pound tank so that if the temperature drops too low it will kick on and keep the house from freezing, it makes a huge improvement in giving you some freedom in the winter. – Bill S. in Oregon



Economics and Investing:

Mara spotted this: First Fannie and Freddie, Now the FHA? Mara’s comment: “Every time I read about more bailout money for existing “customers” or new bailout money for new “customers,” I start to get woozy and lightheaded! Good thing I am sitting down when I read this stuff!”

GG flagged this New York Times piece: Failures of Small Banks Grow, Straining F.D.I.C. (100th US bank failure thusfar for 2009.)

Items from The Economatrix:

The Great Recession: The Numbers Tell The Story

Investors to Companies: Show Us Higher Sales

State Budgets Get Adrenaline Shot From Clunkers

World’s Largest Shopping Mall is Empty



Odds ‘n Sods:

Reader Steve B. is a broker in the wholesale canned foods market. He wrote me to mention: “As a result of the recent tsunami, canned tuna production in Samoa will be severely
curtailed for many months.” We all know what the law of supply and demand dictates. So stock up now, while prices are still low!

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For American viewers that missed it, Survivors: Series 1 (2008–the remake of the Terry Nation 1970s British series) is now available via Netflix.

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Speaking of England, reader LJ spotted this: Apocalypse city: Welcome to the ‘estate that time forgot’ (or when regeneration plans don’t go ahead as planned

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A new book that was co-authored by the late Carla Emery has been released: Canning and Preserving Your Own Harvest an Encyclopedia of Country Living Guide

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Pittsburgh Police Deny G-20 ‘Sound Cannon’ Allegations. Gee, then they’d better have those YouTube videos removed.



Jim’s Quote of the Day:

“When I was asked to make this address I wondered what I had to say to you boys who are graduating. And I think I have one thing to say. If you wish to be useful, never take a course that will silence you. Refuse to learn anything that implies collusion, whether it be a clerkship or a curacy, a legal fee or a post in a university. Retain the power of speech no matter what other power you may lose. If you can take this course, and in so far as you take it, you will bless this country. In so far as you depart from this course, you become dampers, mutes, and hooded executioners. As a practical matter, a mere failure to speak out upon occasions where no statement is asked or expect from you, and when the utterance of an uncalled for suspicion is odious, will often hold you to a concurrence in palpable iniquity. Try to raise a voice that will be heard from here to Albany and watch what comes forward to shut off the sound. It is not a German sergeant, nor a Russian officer of the precinct. It is a note from a friend of your father’s, offering you a place at his office. This is your warning from the secret police. Why, if you any of young gentleman have a mind to make himself heard a mile off, you must make a bonfire of your reputations, and a close enemy of most men who would wish you well. I have seen ten years of young men who rush out into the world with their messages, and when they find how deaf the world is, they think they must save their strength and wait. They believe that after a while they will be able to get up on some little eminence from which they can make themselves heard. “In a few years,” reasons one of them, “I shall have gained a standing, and then I shall use my powers for good.” Next year comes and with it a strange discovery. The man has lost his horizon of thought, his ambition has evaporated; he has nothing to say. I give you this one rule of conduct. Do what you will, but speak out always. Be shunned, be hated, be ridiculed, be scared, be in doubt, but don’t be gagged. The time of trial is always. Now is the appointed time.” – John J. Chapman, Commencement Address to the Graduating Class of Hobart College, 1900



Note from JWR:

Today we present another entry for Round 25 of the SurvivalBlog non-fiction writing contest.

First Prize: A.) A course certificate from onPoint Tactical. This certificate will be for the prize winner’s choice of three-day civilian courses. (Excluding those restricted for military or government teams.) Three day onPoint courses normally cost between $500 and $600, and B.) Two cases of Mountain House freeze dried assorted entrees, in #10 cans, courtesy of Ready Made Resources. (A $392 value.) and C.) A HAZARiD Decontamination Kit from Safecastle.com. (A $350 value.)

Second Prize: A “grab bag” of preparedness gear and books from Jim’s Amazing Secret Bunker of Redundant Redundancy (JASBORR) with a retail value of at least $350.

Third Prize: A copy of my “Rawles Gets You Ready” preparedness course, from Arbogast Publishing.

Round 25 ends on November 30th, so get busy writing and e-mail us your entry. Remember that articles that relate practical “how to” skills for survival have an advantage in the judging.



Heating With Wood, by SGT B.

I don’t know that you would call my father a prepper. He was more just in love with the idea of economic independence and living in the woods. When I was nine (after the woods behind us were clear cut for an apartment complex), we sold our house in the suburbs, bought ten acres far enough out that he figured the developers would never find us, and built a home in the woods.

We heated this house with wood, and as any of you who grew up with a wood stove can already guess, that meant I spent a good chunk of my young life cutting, splitting, hauling, stacking, and burning wood.

Here are some of the things I learned while I was about it. This will by no means be complete, but will reflect only my partial understanding of a subject as old as fire, and as varied as the trees.

First things first: Why wood?

Wood grows. Wood in one form or another grows in most of the inhabitable regions of the earth. If you own land, chances are you own some wood. If not, probably your neighbors have some. Wood heat is renewable energy that anyone can harness. It can be had when the economy is bad as well as when it is good, it is absolutely EMP-proof (although your stove may not be, if it uses electronic components), and so long as you harvest it yourself, it is tax-free. Wood is not necessarily the best or only way to go, and should be weighed against other options. Even for off the grid situations, heat can be provided through heating oil burning stoves (I assume) or through electric stoves if you have a generator or other form of power. That said, unless you have a super abundance of electric capacity, you probably have many other demands on your juice in any sort of emergency.

The downside of wood is that it is not free. You will have to spend either time or labor to get it. Depending how much you use, this could translate to a lot of labor. The other aspect of this is that if you are injured or disabled, you will have a rough time of it. When my father injured his arm badly, I was in school, and our wood stack was at a low point. We were supported by members of our church fellowship helping with wood, and by using on the grid backup systems. In our case this was merely embarrassing, in some situations it could be worse. I’d say follow the rule of threes and have multiple means of heat.

Other considerations: You will have maintenance and cleaning chores with this method. On the plus side they’ll be things you can do yourself with the right tools. Own your own gear for cleaning the chimney. Don’t burn chemically treated wood, and you can use the ashes in compost, but mix them with other stuff or they’ll just form a smothering layer of gray mud. Avoid burning trash for heat if you can help it. Chemically treated wood and plywood can also produce poisonous fumes, so keep that in mind.

Woodstove Selection
I am familiar with three ways of heating with wood indoors. There may well be others, but if so I don’t know them and am not qualified to speak on them. They are, a fireplace, a simple wood stove, and a wood burning water stove.

The fireplace: This is the most basic form of woodstove. They range from the small and basically decorative fireplaces of most modern suburban homes to the vast fire places of old manors, where large meals can be prepared at the hearth. Fireplaces are generally poorly situated to heat a home. They reside on one side of the room, radiate much of their heat directly up the chimney, or out through the sides, and are basically inefficient. That said, if that is all you have, it is well worth laying in a supply of wood for hard times. From a survival standpoint however, someone in such a position should probably focus more on securing their primary method of heat, with a generator or a supply of heating fuel depending what that is.

Free standing wood stoves. These are, at their most basic a big box with a fireplace in the middle, and with a stovepipe to take away the smoke. They can be situated anywhere in a room, and radiate their heat outwards. If properly designed and located, they lose much less heat up the chimney than a fireplace. They are not efficient for heating other rooms, and (like a fireplace) may be inadequate for heating a large home. Some designs can also provide a cooking surface and or an oven. I find this attractive enough to be a primary consideration, but you may feel differently. These stoves also require no electricity in their basic form. I’ve heard of designs that have some electrical features such as blowers, that can heat other rooms of the house, but I have no experience with them. (BTW, I have seen other posts on SurvivalBlog that speak of woodstoves that can handle coal. I don’t have any personal experience with this, but I think that it is a valid consideration during stove selection.)

Wood burning water [jacket] stoves. These are somewhat more complex. Essentially they are a woodstove wrapped in a water tank. Rather than radiate heat directly into a living area, they heat the water, which is then circulated through the rest of the house. They have some major advantages and disadvantages. This is what we had, so this section will be a bit more in depth perhaps.

Advantages:

  • Can be located outside the living area, which offers benefits in terms of:
    • Cleanliness: Lots of bugs live in wood piles, and they often hitch rides inside with the wood, no matter how careful you are. There’s also the risk of smoke drafting into the room, which is bad for you.
    • Living space not occupied by stove.
    • Safety, in that you do not have hot metal in the middle of your living area. If the stove is outside, which I have seen, it may reduce you fire risk, but you will need a shed to protect the stove.
  • Can heat larger dwellings, either through radiant floor heating or through a more traditional central blower (via a heat coil). We had a very large house, two stories with vaulted ceilings and a lot of windows, plus a full basement, and we had very good heat.
  • Can be used to heat your water through a heat exchange. The actual water around the stove is full of chemicals, but a heat exchanger can run it through a heat exchanger to heat your tap water without contamination.

Disadvantages:

  • This system requires electricity and a water supply. That means that if the power goes out, you have no source of heat. For this reason it is imperative that you also have a generator. My family put that purchase off until Hurricane Fran waltzed into central North Carolina and left us without power for over a week. Needless to say there were ten no generators to be had for love or money. Fortunately it was summer. By the time we got to learn about blizzards we had a generator. Still, between running our well pump and the stove there was less electricity for anything else.
  • You also can’t cook on these, so far as I know.
  • Unless you have backup heat or water heating methods, you will have to burn wood anytime you want heat or hot water. This means at least some wood consumption year round. BTW, when I say some, I really mean a lot.
  • Maintenance is more of a concern with these systems than with simpler designs, and there are certain unique things that can go wrong. For example, you have to monitor the fire to ensure than the water supply does no boil, or you will have “opportunities for fun” such as a flooded basement or a damaged heater, or both.

All said, my father, reluctant though he was to admit defeat, came to regret the water stove. It became a beast that swallowed a whole lot of our labor, and wasn’t particularly more efficient than living on the grid and using your labor for other things. Other pursuits, such as gardening, livestock, and hunting, suffered due to the need to feed the machine. Neighbors with regular wood stoves used much less fuel, had fewer problems, and had no need for concern with heat when the power was out. I do not recommend these unless you absolutely must heat the entirety of a large structure.

Woodlot Management

If you have a wood lot, you want to manage it. Second growth forests are often too dense for optimum growth, and culling and thinning the trees permits faster growth by the rest. I’ve heard it said that you can expect a cord a year, per acre, from temperate deciduous forest if you manage it well, but I don’t know it for an ironclad fact. Selecting which trees to cut is important. Unless you’re trying to clear a field (or field of fire) it is not a great idea to clear-cut. Pick out individual trees and cut those to clear space for other trees. Start with downed trees before they rot, and move on to wolf trees that take up a lot of space. Plan ahead too, and make sure you take advantage of downed trees on willing neighbors property. Also make sure they’re willing, otherwise it’s theft of a tangible resource. A significant chunk of our family’s firewood came from other people’s lands. People who have invested in woodlands but not yet built on may be particularly willing to allow you to take storm-downed trees. I know people with sizable woodpiles that only harvest other people’s trees. Coppicing is an interesting idea that is worth looking into, but I have no personal experience with that.

I won’t go into different types of wood here. My knowledge of that is limited and regional, and there is very good, technically detailed information out there about the burning properties of various woods. We always cut a lot of trash trees, because despite the poorer burning properties we wanted them gone from our land. YMMV, and watch for creosote buildup vigilantly. Removing trees that produce large quantities of fruit or nuts fall can reduce the presence of game on your land, and/or remove a significant emergency food source. In general quality hardwoods with long straight trunks are worth leaving to grow, in a pinch you can sell them or use them for lumber.

Cutting wood
I won’t say much about the mechanics of cutting down trees. I’ve never been much of a chainsaw artist, and others could tell you much better. I do recommend having multiple chainsaws in every size you use though, because it is darn hard to cut down a tree with a broke saw. Also, following major storms, at least one of your neighbors will want to borrow one, without fail, and it is an easy way to help someone out a lot. Barter is of course always a consideration as well. Other tools that are nice include come-a-longs, wedges and a heavy hammer – for freeing up a bound saw, log rollers, and a machete for clearing small branches and underbrush. Orange reflective tape on the ‘chete grip will save time wondering where you put it.

It is of course possible to bring down trees with hand-powered tools as well. Following the rule of threes I’d say have a felling axe and a two man cross cut saw in addition to the chainsaw. If you’re worried about noise for security or wildlife purposes, or if you live alone, you might also want a single man cross cut saw. Axes are pretty much the least efficient of these in my mind (but great exercise). Bear in mind that there is a difference between a splitting axe and a felling axe. Felling axes can also come in single bit (that’s the sharp part) or double bit (like the classic battleaxe) and can have curved or straight handles. I like the double bit, but that’s a matter of preference, and I am only modestly experienced at felling with an axe.  I have no experience with two man saws, and therefore won’t comment on them. I will say that you should always have maintenance and sharpening equipment (and know-how) for any cutting tool you keep. Finally, machetes can also be used for bringing down saplings and underbrush, and can provide a lot of small wood.  This can increase the depth you can see into the woods, and reduce fire risks around your home (so long as you clear away the hacked brush of course). Machete hacked stumps can be fairly sharp, like little punji sticks, and you may wish to break the points down with your boot as you cut to prevent future tripping and foot bruising.

Safety first when cutting (as always). Always clear any potential fall area of people when bringing down a tree, and bear in mind that a severed trunk can jab out backwards with a few tons of force behind it. That can kill you very dead. Also always check your root bole holes when cutting free a storm-downed trunk. A state worker got crushed to death while taking a squat in one after Hurricane Fran because his buddy didn’t check. Also make sure anyone you’re working with is practicing good safety and understands what they’re doing. A friend of mine got the side of his face caved in by the end of a log once because I instructed another friend poorly. He was lucky. A inch or so higher would have caved in his temple. Which brings me to the always wear appropriate safety gear rule. Always do. Period. Long sleeves and pants, boots, gloves, helmet with a face-guard or safety glasses, hearing protection. I’m losing my hearing and not quite 30 years old. I now wish I’d worn it.  In very cold weather avoid steel-toed boots as they can promote frostbite.  Remember too that after a tree has torn itself free of the surrounding canopy there may be sizable limbs left suspended that may come free and drop with a breeze. Dead trees can also break apart as they come down, or even with the vibration of the saw, so helmets are important.

Younger family members can be included in hauling small wood and burning brush and waste wood while you cut, but make sure you watch out for them. They can be hard to see, and may lack a proper sense of safety, or at least the attention span to remember it. You’ll also want to monitor horseplay. I busted a friend’s teeth out with a piece of firewood at the woodpile at the age of five, and got severely burned in a brush clearing bonfire when I was six. We weren’t working at that age, just horsing around in a work area.

When sectioning trees, make sure that there is sufficient clearance between the bottom of what you’re cutting and the ground for you to stop. Even occasionally grounding a moving chainsaw blade is too often. Also make sure the two sections won’t twist free of each other when you separate them and strike you or your assistant.

Splitting wood
For splitting wood you should have a variety of tools, because not all wood is created equal, and I’m pretty sure some trees were created specifically to build the character and fortitude of wood splitting youths everywhere.

Tools I used for various splitting tasks were a hatchet, a small axe, a large splitting axe, an 6 lb maul, a 14.5-pound maul, a sledge hammer and an assortment of wedges. Most of these are not used most of the time, but I recommend having them all, especially the wedges. Sometimes a large piece of wood will decide not to give back your maul. Small axes and hatchets can allow children to participate (and boy don’t I know it), but make sure you give them clear safety instructions and supervise them. After years of replacing handles I have given up and determined that I will never buy another wooden handled striking tool. I have not yet personally owned a fiberglass-handled axe, but plan to get one. With the heavy maul I use a steel handle.

I advise against using a chainsaw for splitting unless absolutely necessary, because it is a lot of wear and tear on the saw, and because it isn’t generally necessary. I also advise against splitting even small wood with a machete, you’ll have better control with a hatchet.

Remember to always bend at the knees when you bring down the maul/axe. This reduces the risk of back injury, and also ensures that if you miss, the arc of the maul will intersect with the ground rather than your shin or foot. I also advise against swinging from behind the back. I find that that increases strain on your back and arms and leads to significant injury. It also reduces accuracy and doesn’t add enough force to justify it. Others disagree. They have their ways and I have mine. I bring the axe gently to an overhead position, with a wide grip, and only then begin the swing, bringing my top hand down along the shaft as I swing.

I consider myself a minor artist with a maul, and am more conceited about it than anything but my fire building, but when I again heat with wood, I will have a gas powered pneumatic splitter. Yes, the purchase cost is high, yes, it requires gas. But it will save you many, many hours of labor. In my case it added days to my year when we rented a friend’s for just a week.  Pick a centralized location, and then one person brings the wood to the splitter while the other one feeds.

I would however not be caught dead without the tools for the older methods. Gas runs out. Machines break. It would just about take an Arc Light [bombing] mission to destroy a steel handled maul. Also some times it is easier to use a maul than a splitter, and sometimes you just need to blow off steam by breaking things apart (I mean firewood, not people who stress you out).

Always wear boots. Always wear gloves. Always have extra gloves in depth.

Hauling wood
Own a good quality wheelbarrow. [JWR Adds: In addition to a wheelbarrow with an air free (foam-filled) tire, if you have an ATV, then buy a sturdy steel trailer for it. Unless you live on a mountainside, an ATV can get to the farthest corners of your wood lot.] Keep spare parts for everything but the bucket. You will need them. Always store the wheelbarrow upside down if you keep it outside. Always check for snakes when you turn it back up to use. For obvious reasons I recommend using a motorized vehicle for hauling long distance up hill. Even if you have to clear a path, it will save time. Plus, you also burn whatever was in you path. Even the trunk of a sedan can be used to haul a fair bit of wood. Human chains are great for loading/unloading operations. I advise resisting the temptation to toss the wood to one another, but for short, steep gradients, throwing wood down can save a lot of time. Just don’t try to catch it. Make sure to switch sides periodically to vary which muscle groups are getting the strain.

Stacking Wood:
Stacking wood is an art form of its own. There are many ways to do it. Just remember the basics:

  • Never just pile the wood up for more than a short while. It will rot quickly on the bottom, and why should you lose wood you’ve already worked to cut and haul.
  • Always stack on [scrap wood] runners. This permits airflow underneath and greatly delays wood wasting rot. It also reduces bugs, which is good if it’s by your house. It may provide runways for little furry critters, but they are going to be there anyway, so don’t sweat it. I recommend at least one full-time outdoor mouser. Bring her food in at night to encourage hunting and to reduce instances of being woken up by her fighting off coons and possums.
  • Do sweat the snakes and spiders. Once more, always wear gloves. We had a problem for a while with a nest of copperheads. This taught us to always check the ground around the wood stack. It also taught us that in a hot enough stove, a copperhead can pop like a big meat popcorn. Remember to burn at least the heads, and that they can still bite when dead. Ant nests can be a problem too, and necessitate seeking out the wood they have built their home in and sending them on a vacation to a warmer place. Ants just sizzle though, they don’t pop. Sorry.
  • Stack tight, and stack stable. Put the longest and the heaviest pieces at the bottom. Put oddly shaped pieces off to one side and then stick them on top. Think of the stack as a puzzle and make it tight. End posts are nice with permanent stacks. BTW, small stuff burns quickly, and can cause a fire to rage out of control, with a water stove, this can be a problem, causing your water to boil. Stack skinny bits of wood separately from the big stuff, or put them on top.
  • Cover your stacks against the rain. If you use tarps, make sure they are taught, or you will wind up with pooling water that will reduce the life of your tarp and seep into your wood. I advise using solid overhead cover for at least your near term use wood. I feel that over time in a humid climate moisture and heat can build up under a tarp and permit decomposition.
  • When bringing in wood from outside, keep an eye out for vagabond critters scurrying away from you into your house. If they enjoy eating your wood stack, they’ll likely love your nice warm house. Sweep up all debris when finished and throw it in the fire. And never store wood in the house. Things that are dormant under bark in the cold weather may revive in your cozy abode and frolic, to your detriment.
  • Wood stacks can be used to provide tactical landscaping, as others on this blog have mentioned. In addition to providing cover or concealment, they can also block your fields of fire, or avenues of maneuver. Site them wisely.
  • Rotate through your stacks on a modified FIFO basis. In general this means oldest stack first, but sometimes a newer stack may be drier. Use the dried wood first. The water in wood consumes heat energy as it evaporates, reducing useful output, and also add bulk to the smoke, encouraging it to flow back out into the house.

Timing:
Generally we cut down trees in the late Fall or Winter. It was a good time for hard labor with the cool weather, the underbrush is less dense and buggy, and the sap isn’t running in the trees. We would usually try and get the years supply down and cut into rough lengths. This lets it dry faster. Generally we would leave it in place or rough stack it in place and move on, and then collect it in a later season to haul to the house. This let us make the most of the time when the sap wasn’t running to bring down trees.

Once the wood is rough stacked you can leave it there for a while. I don’t bother to cover wood I leave in the woods. The rain won’t hurt the inside of the wood much, and it will have time for the outside to dry when I bring it to the house. This was an issue of space around the house for us. If you have a big wood barn, like one of our neighbors, there’s not much reason to leave it in the woods.

As for splitting wood, some say it’s easier when wet, some say dry. After trying it both ways I think it depends on the type of wood, but ceased to look into it once I discovered powered log splitters. I do know that wood dries much faster when split, and stacks better too, so I see no reason not to split wet wood.

Thanks to Mr. Rawles and to all the SurvivalBlog contributors. God bless you all and remember to change your socks. – SGT B.



Letter Re: How to Make Your Own “Black Out” OPSEC Window Panels

James,
Another good product for light shades is Reflectix Insulation.

Basically Reflectix is bubble wrap with aluminum foil bonded to one or both sides. I have used it to make thermal drapes for my home, and know that it blocks all visible light. You can buy it at most Home Improvement centers. It commonly comes in 25′ rolls that are 16″, 24″, or 48″ in width.

Last winter I bought a 4’x25′ roll and had enough to do my entire house. (9 windows of various sizes) the cost was about $40.

Manufacturers claim that reflects up to 97% of all radiant heat, so not only will you save some energy, I would expect it to be somewhat effective against infrared and thermal imaging.
I know that the temperature in my old Mobile Home came up a good 10 degrees F in just the 45 minutes it took me to put up my blinds.

While I made my blinds so they can be rolled up during the day time, it would be very easy to find some way to anchor them on the sides and at the bottom so they would completely block all light at night.
Thank You JWR for a great site. – Fanderal



Letter Re: Where to Store Food When There is No Simple Answer

Mr. Editor:

Like Margy, I also found myself building an ‘above ground cellar’ for temperature stable storage of food and other goods. Working with a detached three-car garage that had just a two-car door, I converted the extra ‘bay’ to a bonus room. With standard framing and insulation I noticed that that room remained noticeably more even in temperature throughout the day.

I also have warm summers, 100F and occasionally more. Winters rarely drop below freezing for more than a day or two.

I did some research once on passive temperature control and learned that water has a high specific heat and in significant quantity can stabilize the temperature of a given space. I acquired several 55 gallon plastic drums and placed them in a row along the interior wall of my room. I filled them in place with water I treated with bleach and sealed them. Within days I noticed that the temperature remained nearly constant regardless of time of day. The barrels are about 3′ high by 2′ deep, and it is easy enough to construct shelving above them.

I improved on this further by adding more barrels and increasing the insulation. I bought 2″ thick foam panels at Home Depot, the kind with reflective metal coating. These I cut to shape for the windows and blocked them off. I also bought a box fan and some furnace filters. This I mounted in a window on a clock timer. The fan pulls cool night air into the space, pulling air through a furnace filter and an exterior screen. Now that the summer has passed I have disabled the timer and will cover the fan assembly with an insulation panel as the temperature drops. I may even use it to pull warmer afternoon air in during winter.

With these steps and no significant heat sources inside the insulated envelope I have found that with no energy consumption I have managed a cool place for long term storage.

Water is cheap and readily available. Once purified, it requires no maintenance when properly stored. – Vlad



Economics and Investing:

The Other Chris sent the link to a New York Times piece: Foreclosures Mark Pace of Enduring U.S. Housing Crisis. Here are some key quotes: “Every 13 seconds in America, there is another foreclosure filing. That’s the rhythm of a crisis that threatens to choke off hopes for a recovery in the U.S. housing market as it destroys hundreds of billions of dollars in property values a year.”

“Michael Barr, the Treasury Department’s assistant secretary for financial institutions, said more than 6 million families could face foreclosure over the next three years.”

“The Centre for Responsible Lending says foreclosures are on track to wipe out $502 billion in property values this year. That spillover effect from foreclosures is one reason why Celia Chen of Moodys Economy says nationwide home prices won’t regain the peak levels they reached in 2006 until 2020. “The default rates, the delinquency rates, are still rising,” Chen told Reuters. “Rising joblessness combined with a large degree of negative equity are going to cause foreclosures to increase,” she added. Anyone doubting that the recovery in U.S. real estate prices will be long and hard should take a look at Japan, Chen said. Prices there are still off about 50 percent from the peak they hit 15 years ago.”

Reader Jim H. sent this link: U.S. states suffer “unbelievable” revenue shortages

Items from The Economatrix:

Whodunit? Sneak Attack on the US Dollar

Job Competition Toughest Since Recession Began

August Trade Deficit Narrows Unexpectedly to $30.7 Billion

Oil Prices Nearly Flat as Dollar Strengthens

US Job Levels at Lowest Level in at Least Nine Years

Britain Overtakes US as Top Financial Center

10,000 Apply for 90 Factory Jobs

Jim Willie: Death of Petro-Dollar, Told Ya So!