Jim’s Quote of the Day:

"We have thus given up much of the ground that our fathers had won; for under the banner of justice and in the name of the law we permit things to be done that could only be imposed on them by violence." – Alexis DeTocqueville, Democracy in America

Note from JWR:

The bald eagles have returned here to the valley. We see a lot of them here each winter. In addition to fish, they enjoy finding road-killed deer. They aren’t picky eaters. In fact, some of our best “up close” eagle viewing is of the ones that are right next to the county road, typically sharing a road kill with a cluster of ravens. The ravens respectfully wait their turn.

Wider Implications of the Credit Crunch

The news on the financial front has gone from bad to worse. Eric S. sent us this: ECB lends $500 Billion to lower rates, and Stephen in Iraq found this article: Fed Loans Banks [Another] $20 Billion. And if that weren’t enough, K.L. in Alaska sent us this: ACA Capital Holdings Inc. was just de-listed by the New York Stock Exchange. K.L.”s comment was blunt: “[ACA Capital Holdings] is essentially bankrupt. It is one of the insurers of the financial instruments such as municipal bonds, hedge funds and CDOs that have been infected by toxic mortgages. These funds are becoming impossible to insure because their losses are greater than any insurance company can handle. Other insurance companies that bear watching are (stock symbols) ABK, MBI, AGO, RAMR, and MTG. The whole system is starting to come apart at the seams.” I concur.

Here is the significance credit crunch in a nutshell: The sub-prime debacle only served to point out a systemic weakness in the modern banking system: Because of endless CDO/SIV debt “re-packaging” and hedge fund aggregation of countless assorted debt instruments it is impossible to properly assess the risk of most loan offerings. A lot of loans are quite safe and a few are garbage. But given the extensive debt market re-packaging it is hard to tell one from another. (Perhaps the comedians John Bird and John Fortune had it right about “dodgy debts”.) The central banks are frantically trying to pump up liquidity–literally throwing money at the problem. There have also been calls to reduce the banks’ reserve requirements, because assets have been marked down so heavily that banks are now struggling to meet their paltry reserve obligations. But here is the rub: lowering reserve ratios might make depositors nervous and perhaps lead to more banks runs. (As was recently seen with the runs on Northern Rock bank, in England.)

Despite the desperation moves by the central banks, there is a fairly significant possibility that the entire global credit market will collapse in the next few months and plunge the world into a deep, long recession if not a full scale depression.

OBTW, I’m not the only saying this. Shortly after I drafted the foregoing, Matt in Texas forwarded this article link, which echoes my conclusions: The coming collapse of the modern banking system. It is time to batten down the hatches, folks.

Two Letters Re: Ladies’ Supplies for Preparedness

Jim:
Just a note to follow up on what a previous poster said about The Diva Cup and The Keeper: I have tried both and I prefer The Diva Cup by far, it seems to be a little more compact and therefore easier to use than The Keeper.

I tried the SouthCoast Shopping link that was given a couple of times (and they have had the price of $17.50 for a long time now) but I usually seem to have some sort of problem on the site when I try to check out. Just be cautious.

If you use www.mysimon.com you will be able to find some nice price comparisons and I ended up getting my Diva Cup for under $20.

Some tips: There are two sizes so ladies, be sure you figure out which size you will need.
Also, practice using it, it does take some getting used to and can be uncomfortable at first. Don’t wait until you are in an emergency situation to use it because your stress level will go through the roof! Thanks, – Amanda

 

Mr Rawles,
Here’s a link for how to instructions for homemade “protection.”

Regards, Lynne

Four Letters Re: Coping With Inflation–Some Strategies for Investing, Bartering, Dickering, and Survival

Jim:
Great article. You say you have a stock of spices you bought in the 1980s, and this saves you money. As someone who gets a lot of pleasure from good food, I would caution that most spices lose much of their flavor in a short time, certainly within a few years, especially for typical herbs and powdered spices stored in jars as bought in supermarkets.

Yours may be specially packed or stored, or selected long-life types. But for most people, as advised in the “Rawles Gets You Ready” preparedness course, buying in moderate bulk makes more sense. A mail-order house like penzeys.com (they are pleasant but leftists, and there are surely others out there) will have spices that are superior to supermarket prices at vastly lower prices, if bought not in jars but in zip-lock envelopes of about 4 ounces each. Fill a spice jar halfway for normal use, and keep the rest in the envelope in the freezer until a refill is needed. You’ll always have fresh spices, not the stale ones that everyone has gotten so used to (most people are amazed when they compare a sniff of their old jar of garlic powder to a freshly opened package that just arrived in the mail.) Best, – Jake Stafford

Sir;
In reference to your recent article about coping with inflation, I did research of my own and found a table/chart of interest.

This last November had the highest rate of inflation, since the year 2000. It reinforces the need of investing in tangibles versus wasting money in savings and investments [that don’t keep ahead of inflation.] Thank for your great source of info. – EG

 

Dear Jim:
For those people with a budget crunch (almost everyone), suggest that they look into Angel Food Ministries. There is no income qualification, the food is of excellent quality, and there is probably a church near most people that is a part of this ministry. About two months ago, my wife took the Angel Food menu and priced it our at our local supermarket. The brands were the same and the price at the supermarket came to just under double what Angel Food charges.
This isn’t charity. Rather it’s a wholesale program that allows a family to buy a considerable amount of their monthly groceries at a lower price. I recommend that folks at least go to their web site and check it out for themselves. Cordially, – Jonas

 

Hi Mr. Rawles,
Another way to save on long distance phone bills is to use one’s cellular phone on nights/weekends where minutes are unlimited, although this is dependent on having service and the carrier. I have Verizon and make all of my long distance phone calls this way. Merry Christmas, – Sam

Letter Re: Credit Crisis Attracts Carpetbaggers from Europe

Jim,
In your novel “Patriots” the UN and Europe’s storm troopers waited until [after] the collapse [to move in] but in reality they are not [waiting]. With foreign banks buying (or should I say trying to buy) US banks and larger euro banks trying to buy the sub prime loans from several sources and now they are trying to make us a new sweat shop because of our falling dollar.

They are gobbling up all of the defaulting residential and commercial property that they can, to a the average person that looks at it they are helping, but no there not they are buying up the US, including banks, right out from under us and the Federal Reserve and the greed of the big business people are selling us right down a bad path. I can tell you that the Fed is giving these banks tax credits when they take over the housing mess and they will come in and build their products and trade out the tax credits for export taxes and we will get pennies and they will get the dollars. [The European bankers] will own the property. Hmmm… As a believer in he golden rule, I can see that they will have the gold, and the land, so they will end up making the rules. – CDR

Odds ‘n Sods:

Working with 12 VDC solar power–a teenager describes how he did it himself, in this YouTube video. And here is an update, filmed a year later–after he added a bus bar and a pair of deep cycle golf cart batteries.

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I noticed that Gun Parts Guy now has his FAL/L1A1 extractor tools back in stock. These are very well made–here in the States–and I highly recommend them.

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Anyone that thinks that they’ll be able to get by without backup power should read this: No Power for 10th Day for Some in Plains

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RH in Colorado and TCD both found the link to the original article referred to by Mike in Malaysia regarding Australians prepping for the Asian Avian Flu.

Note from JWR:

The high bid in the current SurvivalBlog Benefit Auction is now at $170. The auction is for a scarce original 1980s-vintage Heckler und Koch 19mm Emergency Flare Launcher (EFL) aka “Notsignalgerät“ from my personal collection. It comes with three magazines and 28 scarce original German 19mm flares–10 red, 10 white, and 8 green. Together, this package is worth approximately $400. It is not classified as a “firearm” under Federal law. (Consult your state and local laws before bidding.) Sorry, no overseas bids will be accepted for this auction. This auction ends on January 15th. Please e-mail us your bids, in $10 increments.

Letter Re: Communications in Times of Crisis

Hi Jim,
In response to letter “Re: Communications in Times of Crisis”, I am a communications specialist and an electronic engineer with nearly 30 years in communications. Here are a few corrections to a very good post – some minor, some not:

Typical UHF connectors will have approximately 0.5 dB loss, not 1.5dB (get rid of them if they do!). Many times it is preferable to buy your coax cable with installed connectors. There are a number of ham radio suppliers that will professionally install (and waterproof with sealant and heat shrink) good quality connectors to custom length cables. The RF Connection is a very good source and is well priced. Silver/Teflon connectors are much preferred over nickel plated ones. Many commercial base/repeater UHF antennas will use N connectors instead of UHF due to less loss and better water resistance. Custom cables can be made with a UHF connector on the radio end and N connector for the antenna end. (Be sure to use Coax Seal on all external connectors and wrap with good quality electrical tape.)

Next, he states “If someone holds a valid Ham license, and a GMRS license, they can use their UHF 440 rigs to operate within the GMRS and FRS services”. This is absolutely not allowed. Converted ham radios are not allowed on any other radio service. (But, commercial/business radios can be used on ham bands.) Also, contrary to what most people believe, any radio used in GMRS must be certified under Part 95 of the FCC rules, not just any commercial/business radio. Some older commercial equipment is “grandfathered in” but there are a few newer commercial radios that are not. This is especially important for repeaters, since repeater sites are visited more often by FCC field agents than anywhere else.

In his statement “GMRS is strictly a service designed to provide families and family-owned businesses a mode of communication”, a clarification is necessary. “Family-owned business” is irrelevant. All GMRS licensees must be individuals (not groups or corporations) to operate. A GMRS license does extend privileges to a large portion of your family and can be used for your family business if all employees are immediate family members. If non-family members are part of the business, they must obtain their own license to use GMRS. [Note: due to the high cost of frequency coordination fees for commercial frequencies, many small businesses will license their employees for $85 each rather than pay many hundreds for coordination.]

In conclusion, I’d like to add emphasis his and your recommendation that the antenna system (antenna and the coax) is a crucial part of any communication system. Spend the money on a good antenna system and you will have a good communications system. – Rob at Affordable Shortwaves

Letter Re: Preparedness on a Very Tight Budget

Mr. Rawles
I could not agree more that water and lots of it is the place to start for preparedness on any budget. I purchased DOT/UN/FDA certified closed-top 55 gallon drums which are made of high density polyethylene (HDPE) from my local Pepsi Bottler for 15 dollars each. I try to buy the white ones that contained lemon lime flavoring syrup so my water doesn’t taste like Dr. Pepper etc. They also sold me 15 and 5 gallon containers which I use to store rice, beans and other dry goods.

The best deal I have found for purchasing bulk rice and soy beans is at my local Asian Market. A 50 pound bag of rice sells for under $25. One can easily how much further your survival dollars can actually go when spent correctly. Every major city has an Asian market and that means that there is absolutely no excuse to put off starting a food supply. I tell that to everyone I know as my conscience would not be clear if I didn’t. You may not be a big fan of rice but are you a fan of being alive?

Although she has always supported my need to prepare my wife use to think I was nuts I learned a long time ago not to talk politics, guns, etc. with her and in turn she would not ask why each week I throw five extra cans of stew in the cart that never get eaten. However; during hurricane Rita I got an e-mail from her thanking me for the fact that she knew she would never be one of those souls stranded on the side of the road without fuel trying to get away from Lake Charles, Houston, et cetera. I felt more like a man that day than the day I earned the title U.S. Marine. I am the dad and I must take this kind of thing seriously because if I don’t then the sin is 100% on my shoulders.

Thanks and keep up the good work. – R.L., in Oklahoma

Letter Re: “Rambo” Actor Sylvester Stallone Talks TEOTWAWKI and Burmese Genocide in Interview

Jim:
In the February 2008 issue of Soldier of Fortune magazine, Sylvester Stallone is interviewed in reference to his newest “Rambo” movie (scheduled for release on January 25th) which should shed some light on the ongoing persecution of the Karen [tribe] people by the Burmese government. He is quoted as follows:

I really want something heartfelt, that’s about flesh and blood, and about how cruel man really is, if left alone.

I believe that we’re not that far removed from being truly uncivilized. We say we’re civilized, but it wouldn’t take much, a breakdown in law enforcement, removal of the military, authority figures gone for a week. Then you’d see how we would band together in packs to survive.

We’ve sort of PC‘d it out – oh, let’s be more intellectual, let’s debate issues, let’s have forums – but if there was truly a situation where our system broke down completely, we’d revert.”

Sly goes on to say later in the article, “:I may be accused of just pandering to violence. And I want to go on record and say that I only touch the surface of violence that the Burmese perpetrate against the Karen.

I don’t show children being put head first into rice pounders and literally emulsified. Or a member of a family being forced to be cannibalized by other members of the family. Or a Karen having a child’s head cut off and then the body being tied behind the father like a backpack and he has to wear it until it rots, twenty-four hours a day. That is sickness beyond sickness. Y’know, heads on spikes. Medieval.”

Your book, “Patriots” included a scenario in which cannibals were encountered and dealt with appropriately and efficiently.

There are many of us who are honest, hard-working, God-fearing souls who would not sell our souls for thirty pieces of silver. However, we need to occasionally remind ourselves that evil walks among us and some who manage to suppress their dark tendencies may give in when our relative peace and imagined prosperity disappears. As the Boy Scouts say, “Be prepared”.

I enjoy your web site and appreciate the effort and sacrifice that goes into keeping it relevant. I first started reading your blog several months ago and will join the “10 Cent Challenge” group next week – just in time for Christmas!

May God continue to bless you, your family, and your blog readers – even the tight ones who won’t take up the 10 Cent Challenge. – SE Texas 5-0

Letter Re: Inoculation Recommendations

James,
Mike in Seattle made a good point on tetanus vaccine. Another consideration is that most emergency departments give Diphtheria/Tetanus if you come in with broken skin and you are ‘out of date’ on your Tetanus.
If you go to your regular doctor, though, you should be able to get Diphtheria/Tetanus/Adult Pertussis (Whooping Cough). Most adults who were only vaccinated against Pertussis as children have little or no immunity.
Pertussis is not as likely to kill you as an adult (unless you have underlying respiratory disease!), but it can sure take you out of action for a few weeks, and the vaccine is worth getting. – Simple Country Doctor

Letter Re: Ladies’ Supplies for Preparedness

Mr. Rawles,
I’m a woman, and you know what that means – if I’m not currently pregnant, I’m going to bleed once a month.

I know, you’re a guy, maybe you haven’t thought of this – but disposable menstrual products can be scary expensive. It can also be hard to discreetly dispose of them while moving fast, and they’ve got to be changed fairly often if you’re a heavy bleeder.

It might be a good idea for women concerned about the future to invest in some form of reusable menstrual protection. I’m thinking specifically of a cup, such as DivaCup or the Keeper, They can be worn for some ten hours, they last seven to ten years at a stretch, they make no waste, they don’t clog your toilet, and they pose little to no risk of toxic shock syndrome. The price can be steep, but trust me – after a year, that $35 investment has paid for itself. They can be sterilized by a quick boil. OBTW, if anybody is interested in getting a DivaCup, they should probably pick one up while they’re being sold half-price.

There are other options, such as sea sponges (which last six months to a year) or cloth pads – and if anybody is going to go that route, I strongly suggest they just invest in some cloth pads now. Modern pads are often made of harder-to-find absorbent fabrics such as bamboo or hemp, instead of many more layers of torn apart rags, which can make them more effective than just ripping up old clothes. Purchasing the raw fabric and snaps is cheaper, of course.

Even if somebody only buys a reusable option to be used as a last resort, if they literally cannot find the products they are used to, it may turn out to be money well spent. – Connie

JWR Replies: Thanks for your e-mail. It meshes nicely with a previous letter on the same subject by Kitiara–who BTW writes/edits the very entertaining KiloIndiaTango blog (previously called “Forever Vain”.) Also BTW, Kit recently posted her review of “I Am Legend.”

Odds ‘n Sods:

Frequent contributor Michael Z. Williamson flagged an article about H5N1 Asian Avian Flu. It is still not easily transmissible, but remains a cause for concern.

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The Bricklayer in Detroit sent us a link to a “must read” piece of commentary on the perilous state of the global credit market.

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A reminder: the special sale on pairs of 35 gram pouches of CELOX being offered by Safecastle Royal is ending soon. Be sure to get your order in ASAP, since the manufacturer’s pricing goes up in January 2008,

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More Nanny State Insanity: Knife at Lunch Gets 10-Year-Old Girl Arrested at School. Here in The Un-named Western State (TUWS), the same situation would have resulted only in a lively debate amongst the kids about the best brands for utility versus skinning, and folder versus fixed blade, and then perhaps liner lock versus others–with several being brought out of pockets and sheaths, for comparison. If you live in one of the liberal Nanny States, then my advice is simple: vote with your feet.