“As long as one doesn’t get into a gunfight, a 9 millimeter is just fine.” – Mark Moritz
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Notes from JWR:
The folks at Ready Made Resources have kindly added two books to the current SurvivalBlog Benefit Auction. They are: “Healing Oils of the Bible“ by David Stewart, Phd., and “When Technology Fails“, by Matthew Stein. These will be added to the existing lot of auction items: a 120 VAC/12 VDC BedFan Personal Cooling System (a $99 retail value), kindly donated by the manufacturer, a Thieves Oil Start Living Kit (a $161 retail value) donated by Ready Made Resources, and a copy of the latest edition of “The Encyclopedia of Country Living” by the late Carla Emery (a $32 retail value). The auction ends on March 15th. The high bid in the current SurvivalBlog Benefit Auction lot is now at $80. Please e-mail us your bids, in $10 increments.
Today we present another article for Round 15 of the SurvivalBlog non-fiction writing contest. The writer of the best non-fiction article will win a valuable four day “gray” transferable Front Sight course certificate. (Worth up to $2,000!) Second prize is a copy of my “Rawles Gets You Ready” preparedness course, generously donated by Jake Stafford of Arbogast Publishing. Round 15 ends on March 31st, so get busy writing and e-mail us your entries. Remember that articles that relate practical “how to” skills for survival will have an advantage in the judging.
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The Elephant in the Room, by Norman Church
“I’m right there in the room and no one acknowledges me.”
“We must face the prospect of changing our basic way of living. This change will either be made on our own initiative in a planned way, or forced on us with chaos and suffering by the inexorable laws of nature.” – President Jimmy Carter (1976)
Before we discuss this Elephant in the Room we must first briefly consider the notion of ‘sustainability’. Too often people debate sustainability issues from an understanding that is vague, incomplete or frankly flawed.
“Just exactly what is meant when the word ‘sustainable’ or ‘sustainability’ are used?” They are popularly used to describe a wide variety of activities which are generally ecologically laudable but which may not be sustainable.
First, we must accept the idea that “sustainable” has to mean “for an unspecified long period of time.”
Secondly we have a spectrum for the use of the term “sustainable.” At one end of the spectrum, the term is used with precision by people who are introducing new concepts as a consequence of thinking profoundly about the long-term future of the human race. In the middle of the spectrum, the term is simply added as a modifier to the names and titles of very beneficial studies in efficiency, etc. that have been in progress for years. In some cases the term may be used mindlessly (or possibly with the intent to deceive) in order to try to shed a favourable light on continuing activities that may or may not be capable of continuing for long periods of time.
The Government of the United Kingdom defines a ‘sustainable community’ in its 2003 Sustainable Communities Plan: ‘Sustainable communities are places where people want to live and work, now and in the future. They meet the diverse needs of existing and future residents, are sensitive to their environment, and contribute to a high quality of life. They are safe and inclusive, well planned, built and run, and offer equality of opportunity and good services for all.’
So there briefly we have “sustainable”?
If we follow on from the above we can see that a ‘sustainable population’ would be one that can survive over the long term, I am talking of thousands to tens of thousands of years, without running out of resources or damaging the environment in the process. This means that most of the resources we use have to be both renewable through natural processes and entirely recycled if they are not renewable. Our numbers and level of activity must not generate more waste than natural processes can return to the biosphere. A sustainable population must not grow past the point where those natural limits are breached.
If the population does exceed the carrying capacity, the death rate will increase until the population numbers are stable. Using these criteria it is obvious that the current human population is not sustainable.
In the entire environmental-related discussion taking place, population is a word we seldom dare to speak and it is conspicuous by its absence: Population is the elephant in the room.
It is obvious that something has massively increased the world’s carrying capacity in the last 150 years. During the first 1800 years of the Common Era, like the tens of thousands of years before, the population rose very gradually as humanity spread across the globe. Around 1800 this began to change, and by 1900 the human population was rising dramatically:
That something is oil.
Peak Oil
As we all know, but are sometimes reluctant to contemplate, oil is a finite, non-renewable resource. This automatically means that its use is not sustainable. Oil and Natural Gas are finite! There may be arguments over how much oil/gas there was/is but, regardless of what that number is they are finite, absolute.
If the use of oil is not sustainable, then of course the added carrying capacity the oil has provided is likewise unsustainable. Carrying capacity has been added to the world in direct proportion to the use of oil, and the disturbing implication is that if our oil supply declines, the carrying capacity of the world will automatically fall with it.
These two observations (that oil has expanded the world’s carrying capacity and oil use is unsustainable) combine to yield a further implication. While humanity has apparently not yet reached the carrying capacity of a world with oil, we are already in drastic overshoot when you consider a world without oil. In fact our population today is at least five times what it was before oil came on the scene. If this sustaining resource were to be exhausted, our population would have no option but to decline to the level supportable by the worlds lowered carrying capacity.
What are the chances that we will experience a decline in our global oil supply? Of course given that oil is a finite, non-renewable resource, such an occurrence is inevitable. The field of study known as Peak Oil has generated a vast amount of analysis that indicates this decline will happen soon, and may even be upon us right now. The decline in oil supply will reduce the planet’s carrying capacity, thus forcing humanity into overshoot with the inevitable consequence of a population decline.
The rapidity of the decline following the peak will determine whether our descent will be a leisurely stroll down to the canyon floor or a headlong tumble carrying a little sign reading, “Help!”
Each of the global problems we face today is the result of too many people using too much of our planet’s finite, non-renewable resources and filling its waste repositories of land, water and air to overflowing. The true danger posed by our exploding population is not our absolute numbers but the inability of our environment to cope with so many of us doing what we do.
But are there other factors besides these that may contribute to overshoot with the inevitable consequence of a population decline.
The United Kingdom
UK population growth is environmentally unsustainable, and if it is environmentally unsustainable it is also economically unsustainable, for without ecologically healthy land our economy will not be able to support its own people without causing damage to the environment.
Today, the UK population is about 62 million and is one of the most crowded areas in the world. In 1750, when the Industrial Revolution was beginning, it was about 6 million. It had never exceeded this figure, although during the Dark Ages and after the Black Death it fell to one or two million.
Most people lived and died in poverty. Pre-industrial farmers were pushed to the limit to feed so many. The population increased slightly in years with good harvests, but starvation and malnutrition cut it back to the 6 million norm when harvests were bad.
We are in fantasy land if we think that we can continue to support the number of people that we do now without the full input of oil and its related products.
We have become so dependent on those fuels, that there is no way we can sustain ourselves at this population density and level of technology without them. Even something as basic as food will become impossible to produce, process and transport for our present numbers without fuel.
Just as redistributing greenhouse gas emissions is no solution to climate change, population redistribution provides no long-term solution to environmental sustainability – total population numbers need to decrease both in the UK and worldwide, alongside efforts to reduce people’s individual environmental impacts.
By adding over two million more people (extra producers of greenhouse gas emissions through household, transport and business use) to the population of the UK since 1997, and by allowing the number of climate changers to rise by more than 300,000 people a year, the government’s population policy has undermined most of its environmental goals.
Climate Change
The climate change scenario for the UK is one of initial warming. Longer drier summers and stormy wetter winters are predicted, based on a temperature rise of 2/3.5° Celsius for the UK by the 2080s [UK Climate Impacts Programme, 2002]. [1]
But a 5.8° Celsius rise is possible, with some climate scientists suggesting even faster warming. In the UK, 2006 was the warmest year since records began in 1659.
The Benfield Hazard Research Centre at University College, London, has produced maps of Britain showing the additional impact of sea-level rise under three scenarios. [2]
There is also increasing evidence of another worrying scenario – the possible failure of the Gulf Stream that keeps Britain’s climate warm. Without it, the UK would be plunged rapidly into freezing temperatures that would prevail for many generations, and be unable to support its current population of nearly 60 million.
Extremes of temperature and climate, combined with weather-related disruptions, would severely reduce the size of the country’s population carrying capacity.
Food
The UK does not need to be wholly self-sufficient in food, but with population continuing to grow, urbanisation eating up farmland, and more of our remaining agricultural land likely to be used for energy crops, food production will be further squeezed.
The introduction of genetically modified organisms (GMOs) into the biosphere poses a danger similar to that of disease. When a plant GMO is created, its pollen spreads around the world. It is quite conceivable that much of mankind’s food supply could be eliminated, simply by a terrible error in which the introduction of one or more GMOs resulted in the global loss of harvests of a staple food, such as a cereal grain. [3]
The systems that produce the world’s food supply are heavily dependent on fossil fuels. Vast amounts of oil and gas are used as raw materials and energy in the manufacture of fertilisers and pesticides, and at all stages of food production: from planting, irrigation, feeding and harvesting, through to processing, distribution and packaging.
In addition, fossil fuels are essential in the construction and the repair of equipment and infrastructure needed to facilitate this industry, including farm machinery, processing facilities, storage, ships, trucks and roads. The industrial food supply system is one of the biggest consumers of fossil fuels and one of the greatest producers of greenhouse gases.
Almost every current human endeavour from transportation, to manufacturing, to electricity to plastics, and especially food production is inextricably intertwined with oil and natural gas supplies. We are now at a point where the demand for food/oil continues to rise, while our ability to produce it in an affordable fashion is about to drop.
Wastes
Changing consumption patterns reflecting higher material living standards are causes which can be mitigated by changing habits and better recycling, but the 2000-06 rate of increase in municipal waste exactly matches that of population growth. As each individual recycles more of his or her own waste, success is undermined by the constantly increasing numbers of people who create waste.
Power
Among the alternative power proposals is wind power. Wind power is clean and carbon-free, and if the UK’s offshore air currents remain as prevalent as they are today, it will remain the most promising proven source of renewable energy until and if technological innovations improve prospects for solar, wave and tidal power.
But how much land would be needed to provide all our electricity? It depends how much wind power can be constructed offshore. If half the 25,200 MW target for 2020 (estimated to provide a fifth of UK electricity) were built onshore, 3,100 square kilometres of land would be needed – an area larger than the whole county of Dorset (2,653 sq km). For wind power to supply all-electric homes at today’s rates of consumption, for today’s 60 million people, several counties would need to be covered with wind turbines.
Turbines are being built to rated capacities above 1MW, but whatever the capacity of a turbine, and whatever the improvement in energy yield per hectare, these calculations apply only to household electricity demand – if wind power were to be used to produce hydrogen fuel cells as a substitute for petrol for motor transport, land requirements for turbines would rise further.
Water
The total amount of water used in UK (on a per person basis, but including domestic, industrial and agricultural withdrawals) is modest – about 550 litres per day – compared to the majority of countries in the world, because agriculture can be carried on mostly without irrigation.
The UK Government attaches importance to the goal of lowering water use per household because of increasing water constraints: rivers reduced to a trickle for several months, reservoir levels dropping, water tables (for groundwater supplies) continuing to drop. The large increases in the UK population experienced during the last five years makes it even more important to try to push per person consumption downwards.
Against this background, it is astonishing that the UK government has given the go-ahead – indeed has promoted – a massive expansion of housing. Half a million new homes are planned in the South East alone.
The CFRE (Campaign For Rural England) has said: ‘The Environment Agency’s own figures show that for this number of houses to be sustainable would require all the new houses to be 25% more water-efficient and all existing houses to be 8% more water-efficient. Yet 200,000 new houses have already been built in the region without any water conservation measures. Unless we can make the politicians and planners listen and re-think, we are heading for disaster here in Eastern England.’
In a letter to The Guardian, on August 9 2006, Campaign to Protect Rural England chief executive said:
‘Any attempt to define an optimum level for immigration… needs to look beyond issues of the economy and social stability, important as these are, to take into account the environment…. The UK is one of the most densely populated and built up countries in the EU and some English regions are already close to reaching the limits of their capacity to take further development without serious damage to the environment or quality of life.’
Our total usage of water just puts us inside the WWF category of mild stress, and we should regard this as a wake-up call. Along with every measure for reducing per person use of water, through metering, efficient appliances, rainwater harvesting, and reduction of pipe leakages, we should address the problem of population.
UK Summary
The UK has until recently been one of the most resilient economies in the world. Over the last 100 years, it has survived two world wars, staged spectacular economic recoveries, been blessed with energy resources, and evolved from manufacturer to the world into a service economy. But the position in which it now finds itself looks bleaker.
The UK is no longer a net exporter of oil and gas, and though rising prices will in the short term mitigate the impact of this reversal, its trade deficit in goods and services continues to widen. Domestic energy substitutes are unlikely to be able to support current levels of economic activity, and the insecurity of energy imports and import prices is already evident.
Of all the problems that we have to face right now the convergence of Peak Oil, Climate Change and economic instability are probably the most crucial issues we face.
All these problems are merely symptoms of a single, deeper underlying problem. They are symptoms of a species and a way of life that have grown beyond the ability of this planet to supply enough resources or to cope with our inevitable waste products. This growth is seen in the human population, currently surging through 6.6 billion people worldwide. It is also seen in our economic and industrial growth, with its emphasis on perpetually rising living standards and increasing wealth.
The consequences are already clear – our planet is under mounting stress from human activities, with its climate changing and its ecosystems failing. But recognition that we must act urgently to preserve our natural habitat has been undermined by persistent failure to admit the multiplier effect of human numbers. Without policies to reduce world population, efforts to save our environment cannot succeed.
The only thing that has enabled our numbers to shoot so far over the long-term carrying capacity is the planet’s one-time gift of fossil fuels. This has also enabled our underlying destruction of the biosphere.
The global human population before the discovery of oil was about 1-billion. Today it is about 6.6 billion and rising. Without oil, the earth will only support about 2-3 billion, and only if we stop desecrating our environment right now. We cannot continue to feed an expanding global population indefinitely.
The uncomfortable truth is that the impact on Earth’s biosphere of a projected 9 billion people living at a desired higher standard of living in 2050 would be fatal for the planet in terms of greenhouse gas emissions alone.
Conclusions
Given the fact that our world’s carrying capacity is supported by oil, and that the oil is about to start going away, it seems that a population decline is inevitable. The form it will take, the factors that will precipitate it and the widely differing regional effects are all imponderables.
Populations in serious overshoot always decline, though actually, it’s a bit worse than that. The population may actually fall to a lower level than was sustainable before the overshoot.
The reason is that unsustainable consumption while in overshoot allowed the species to use more non-renewable resources and to further poison their environment with excessive wastes.
However it is important to recognize that humanity is not, overall, in a position of overshoot at the moment. Our numbers are still growing (though the rate of growth is declining).
However, we are getting obvious signals from our environment that all is not well. If the carrying capacity were to be reduced as our numbers continued to grow we could find ourselves in overshoot rather suddenly. The consequences of that would be quite grave.
So here we have a huge, complex, brittle system built on the foundation of a depleting, non-renewable resource and depending on a damaged environment with diminished carrying capacity. If this system receives a series of shocks (such as repeated local interruptions of its energy supply) the resulting failure cascades can disrupt the organization of the system to such an extent that the cohesion provided by its interconnections fails. Ironically those connections themselves become the pathways that spread the failure to other parts of the system.
What has all this theorizing to do with population?
Because we are now a global species with a global civilization, continuing growth of our numbers depends on the continuing growth of our civilization. Humanity does not grow through demographics alone; there must be a sufficient level of food, shelter, energy and medical care available. All these factors will be put at risk globally within the next two decades due to the loss of oil and our ability to keep people alive will decline.Food production and distribution will be hampered or in some cases made impossible, and due to the damage of soil and water local agriculture will prove very difficult in some places. If medical care erodes, so will infant mortality and longevity. The erosion of urban sanitation systems will have an identical but greater effect. Across the world the effects will be highly variable, with some places like the United States and the United Kingdom suffering from the catastrophic decline in net global oil exports that is now underway. Other countries like those at the bottom of the list of developing nations will simply be too poor to compete against the developed world for the resources needed for survival. Populations will fall as a result.
This leads inevitably to the objection that such a position caps the aspirations of less developed countries and is thus morally unacceptable. Be that as it may, the facts remain: there aren’t enough resources to bring the whole world up to the industrial level of the developed world and the developed world is unlikely to consent to their own voluntary impoverishment in favour of industrializing the less developed world, and attempting such an approach would increase rather than reduce global ecological devastation. There appears to be no possibility of reducing global fertility through industrialization.
What is amazing is that today’s human society views the present planetary catastrophe (to the limited extent that it considers it at all) only in terms of its impact on itself – on the current generation of human beings. From the viewpoint of future generations, Nero is fiddling as Rome burns.
According to the 2003 State of the World report by the Washington-based Worldwatch Institute, the human race has only one or perhaps two generations to rescue itself. “The longer that no remedial action is taken, the greater the degree of misery and biological impoverishment that humankind must be prepared to accept,” the Institute says in its 20th annual report. Various other reports, like that of the Intergovernmental Panel on Climate Change foresee world-catastrophic conditions already for the second decade of this greatly celebrated millennium.
The authors of The Limits to Growth suggested that it may be possible to avoid the collapse, and transit peacefully to a long-term-sustainable equilibrium, that was over thirty years ago.
I fear this ‘predicament’, not ‘crisis’, because these conditions are not of recent origin and will not soon abate, may no longer be solvable by ourselves and that the change will now be forced upon us with chaos and suffering by the inexorable laws of nature.
Faith in technology as the ultimate solution to all problems can divert our attention from the most fundamental problem–the problem of growth in a finite system–and prevent us from taking effective action to solve it.
We must learn to live within carrying capacity without trying to enlarge it. We must rely on renewable resources consumed no faster than at sustained yield rates.
“If the present growth trends in world population, industrialization, pollution, food production, and resource depletion continue unchanged, the limits to growth on this planet will be reached sometime within the next one hundred years. The most probable result will be a rather sudden and uncontrollable decline in both population and industrial capacity.” [4]
“As for man, there is little reason to think that he can, in the long run, escape the fate of other creatures…….. During ten thousand years his numbers have been on the upgrade in spite of wars, pestilence, and famines. This increase in population has become more and more rapid. Biologically, man has for too long a time been rolling an uninterrupted run of sevens.” – George R Stewart, Earth Abides (1949)
References
[1] UK Climate Impacts Programme, 2002.
[2] The Benfield Hazard Research Centre
[3] Human Genome Project Information
[4] The Limits to Growth (1972)
2003 State of the World report by the Washington-based Worldwatch Institute
My special thanks to Paul Chefurka for his Peak Oil, Climate Chaos; the World Problematique; to OPT; and to Rosamund McDougall for their assistance.
Compiled by Norman. J. Church
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Letter Re: Spot Shortages at a COSTCO Store a Portent of Things to Come?
Jim:
I stopped by COSTCO tonight to pick up some items and they had signs limiting people to two containers of soybean oil and two bags of flour. They were completely out of flour. And they had no 50lb sacks of rice either. So its starting to hit home. This was the case in the West Springfield, Massachusetts store anyway. – John E.
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Letter Re: Sizing a Retreat AC Power Generator
Jim –
Great blog! I wanted to point out an important calculation everyone missed – internal combustion engines produce less power at higher elevation. Generators are (of course) rated at sea level. It’s important to de-rate generator capacity by 3.5% per 1,000 feet of elevation or your generator will be undersized. (A 5,000 “label watt” generator is [effectively] only a 4,000 watt generator where I live at 6,000 feet.) Density altitude on a warm summer day can easily be 2,000 feet higher than that. My rule of thumb: after sizing for load, size generously for elevation or you’ll be buying twice. Hope this helps everyone…
Other food for thought: You don’t need to run all your big loads simultaneously. If the grid stays down, it’ll be a blessing just to have refrigeration – it doesn’t need to be like today where we run everything at once while blow-drying the dog! There’s no reason you can’t shut off the freezer if you need the well pump. The simplest transfer switch allows you to control power to various loads, and this allows you to use a smaller generator to accomplish everything. My genset is home built using a Listeroid (Lister clone) diesel engine and generator head purchased separately. This generator (significantly oversized to run a MIG welder, lathe, mill or compressor/plasma cutter combo) cost me less than $3,000 including truck freight and welding up a stout steel frame (probably $4,500 now, given the weak dollar, steel prices and current shipping rates). Based on decades of British Empire experience with these beasts in third world countries, I expect it will give 30,000-to-50,000 hours of service with minimal maintenance. It gingerly sips fuel and is easily operated on biodiesel or waste vegetable oil without modification.
Regards, – Fred H.
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Odds ‘n Sods:
Fraud compounds woes of housing crisis. (Thanks to Heghduq for the link.)
o o o
A reader in South Florida wrote to ask me why I had “an unrealistic view of the [investment] potential for farmland” and why I “such a strong emphasis on buying farm ground” when coastal and resort properties “have appreciated so well for more than 30 years.” I have a news flash for her: For the next 5 to 10 years, coastal and resort property will probably go substantially go down in price, but good productive farm ground is going to go up in price. The grain market will drive this boom. Land that has long laid fallow in the CRP will be going back into production–mostly planted in corn for ethanol. And every acre that is presently planted in another crop that is switched to making “corn gas” will have to be replaced with acreage elsewhere. Thus, even land in the depopulating Dakotas might even do well. Do you want a recession-proof job? Learn to be a tractor and combine mechanic!
o o o
RBS spotted this: The Federal Reserve Releases Crisis Preparedness Video. Methinks that the banks might have some crises of their own, quite soon.
o o o
Reader Bill N. suggested a web site that discusses some of the common mistakes people make with food storage.
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Jim’s Quote of the Day:
"A government big enough to give you everything you want, is strong enough to take everything you have." – Thomas Jefferson
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Letter Re: With Bank Runs Looming, Check Your Bank’s Safety Rating!
Jim,
Here is a link to “The Street”–a web site that offers ratings of banks throughout the USA. I checked out the banks in my state (California) and found that I currently bank with a “B” rated bank. However, there are a number of A rated banks that are in my town. It might make sense for each of us to know and check up on our financial institutions on a regular basis. This along with choosing the highest rated bank in your area could provide additional layers of insulation from the bank runs that I believe with be inevitable. Keep up the great work. – JSR
JWR Replies: Thanks for making that suggestion. One similar resource that I’ve recommended to my consulting clients for many years is The Weiss Bank Blacklist, published by veteran financial analyst Marty Weiss. It provides greater detail on individual banks and S&Ls.
While we are discussing bank safety, I should mention this: A SurvivalBlog reader on the West Coast mentioned an odd new development in an e-mail. He said, “I recently was told by my international bank (with whom I’ve done business with for several years) that they wanted me to indemnify them for depositing a US [chartered bank’s] cashier’s check. The only reason I can think of for this is that international banks are worried that US banks will collapse and they don’t want to be held responsible for any money that is in transit when this happens. I found this very disconcerting.”
Meanwhile, the headlines are trumpeting: New recession worry: Bank failures. The bottom line is that the risk of bank runs in the US has been substantially elevated in recent months. So be ready, folks! Here are my specific recommendations for readers in the US:
1.) Keep plenty of greenback cash on hand. Keep the equivalent of two month’s pay, if possible. (Expect online banking and ATMs to be shut down, en masse.) Find a well-hidden place for the cash at home. (Odds are that you won’t have access to you safe deposit box, unless it is at a private bank vault company.)
2.) Keep close track of any automatic debits from your bank accounts–(“automatic bill paying”)–so that you can revert to paying via checks or money orders.
3.) Do your banking with at least two separate institutions. BTW, make sure one isn’t the subsidiary of another! (Not only might they both be closed, but conceivably this might cap your FDIC insurance coverage–as if it was just one bank.)
4.) Absolutely do not exceed the $100,000 FDIC insurance limit. ($200,000 for married couples.)
5.) Research your banks’ safety rating. Then make changes, as needed.
6.) If possible, stop direct deposit of your paychecks or annuity payments.
7.) Remind your local coin dealer that bank runs are looking more likely, and recommend that they increase the amount of greenback cash that they keep on hand, including low grade numismatic paper money (such old series $2 bills and the now defunct US silver certificates.) That way you might have a better chance of liquidating some of your precious metals following major bank runs and/or a Federally-decreed “bank holiday.”
If and when bank runs do begin, preserve your cash on hand by making as many purchases/payments as possible with debit cards, checks, and credit cards. (Although odds are that debit cards will be entirely useless, and many stores will refuse checks and credit cards.) Because the paper trail on checks might get muddied in a protracted banking crisis, you’ll need to be able to prove that you made some crucial payments. Keep scrupulous records of your payments, especially for your mortgage, property tax, and insurance. Keep every money order carbon copy, and make photocopies of your checks before mailing in payments. (Or at least order a box of blank check pads that make carbon copies.)
In the event of a “bank holiday”, if you sell any items, insist on payment in cash, precious metals, Liberty Bell (“Forever”) stamps, or Postal Service money orders. Anything else might be hard to negotiate.
If there is a major banking crisis, there will be some unprepared friends, neighbors and relatives that are hurting badly. (Most families have less than one week worth of food on hand at home. Meanwhile, debit cards have become so ubiquitous that few families keep more than $150 in cash at home, on average.) Be charitable.
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Letter Re: Alternative News Sources When The Grid Goes Down
Sir,
I have been hooked to your blog for weeks now and have a topic suggestion for you.
The only news I can trust comes from independent blogs with communities of users working together to bring critical information to light. Web sites like The Housing Bubble Blog have saved me tens of thousands of dollars by being months ahead of the mainstream media (MSM) and by reporting honestly. With the internet we have the means to organize grassroots efforts to support candidates like Ron Paul. We can be kept up to date with the latest injustices and know when our fellow citizens are taking a stand against a corrupt government. Most importantly we have time to react.
We cannot be dependent upon the Internet in a SHTF scenario, yet we will all be in desperate need of quality and timely information regarding future government/societal moves. It would seem to me that we need to establish a pre-internet means of communication or at least a self-sufficient internet community networking through their own dedicated satellite!
What steps are you and your readers taking to provide “foreign intelligence” on operations outside their retreat location? – Daniel L.
JWR Replies: Although the Internet is designed to be high resilient (a carryover from its original design as a US military network), it cannot expect to survive a grid-down situation. The best that we could hope for in those circumstances is a combination voice and data packet network, via High Frequency (HF) shortwave. (Perhaps the Army Aviator or one of our other readers that are senior ham operator would care to chime in on how a quasi-Internet could be piecemealed together using packet modems and HF ham gear.
At the very minimum, to gather local, regional, and international intelligence, weather data, accurate time of day, and to maintain overall situational awareness you should own at least two radios, neither of which need be very expensive:
1.) A general coverage AM/FM/shortwave receiver. Most of these cover all the way from 500 KHz all the way up to 30 MHz. This includes the AM and FM broadcast bands, many of the amateur bands, the international HF broadcast bands (for stations like BBC, Radio Netherlands, HCJB, WWV, and so forth), and the Citizen’s Band (CB) channels. The inexpensive Kaito KA1102 radios are ideal for anyone that is on a budget. These are available from Affordable Shortwaves–a SurvivalBlog advertiser. If you have a bigger budget, I would suggest (in sequence of price) the following
The Sony ICF-SW-7600G (around $195 to $210, new.)
The Sony ICF-2010 (Discontinued, but used ones are available for around $175 to $275 on eBay.) This model was replaced by the ICF SW-77, but a lot of listeners prefer the controls on the ICF-2010.
And if you have a “The sky is the limit” budget, get a Drake R8A (around $1,100 new, or $750, used.)
BTW, even if you eventually buy a more “spendy” receiver, I recommend that you keep a couple of the little Kaito KA1102 radios as spares, preferably stored in metal ammo cans to protect them from EMP.
2.) A VHF police/marine/aircraft/weather band scanner. Try to get one of the more recent models that can demodulate trunked traffic. One relatively inexpensive “trunked” model is the Bearcat BC898T. They sell for around $240. If you have a big budget, get a digital model, but expect to pay at least $500. OBTW, nearly all scanners cover the NOAA weather bands.
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Letter Re: A Reminder on the Terrorist Toxins Threat
Jim,
I bring this news story to your attention: Ricin Found in Las Vegas Hotel Room; Man in Hospital
The Center for Disease Control (CDC) protocols don’t give one much hope if ricin is inhaled or ingested. Unclothing and washing procedures for external contact are not reassuring. Other sources indicate that skin contact is usually not fatal unless accompanied by other agents that enhance absorption. [JWR Adds: DMSO is a well-known transdermal carrier.]
Other sources also indicate that ricin is 30 times more potent than VX nerve gas. Full MOPP suit and gas mask seem to be indicated to avoid aerosol exposure. Since the lapsed time between exposure and onset of fatal symptoms can be hours and with no existing antidote, this seems to be a particularly nasty agent to avoid.
It seems to me that for various reasons, one would be more likely to encounter ricin in a terrorist event rather than the other CBR agents that are usually mentioned. In any event, one might have to rely on the rain gear and N95 particulate mask that should be in every BOB along with the standard decontamination procedures that all should be thoroughly familiar with.
Are there field detection resources and other related items that you might recommend for an ai travel BOB which will be different from the vehicle BOB left in the airport parking lot?
I think this has been covered before but it might be timely to reiterate it again. Best Regards, – William D.
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Odds ‘n Sods:
Mainstream market commentator Robert Kioysaki recommends buying silver coins in this piece: The Profit of Doom A SurvivalBlog reader mentioned that Kiyosaki was one of the few mainstream market mavens to recognize silver as a bargain fairly early on. Meanwhile, a lot of his colleagues with stock and bond tunnel vision are still in denial.
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Lex found this from The Wall Street Journal: Will Thornburg Join Failed Lenders?
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Thanks to Sapa for flagging this: Zimbabwe bans ‘unlawful hoarding’. The illegal “hoarding” threshold is absurd–the equivalent of just $21 USD!
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Paul D. mentioned a bicycle engine web site. Paul’s comment: “A friend of mine just got one of these engines for his Mountain Bike. He told me that he rode the dirt roads for two hours on just one quart of gasoline. Wow! Talk about a fuel efficient internal combustion engine. I will be ordering mine soon.”
Jim’s Quote of the Day:
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation . There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard. – Alan Greenspan, 1967
Note from JWR:
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The Fleecing of the Sheeple–America Discovers “What That Thing Will Bring”
There is a very old legal maxim: “The value of a thing, is what that thing will bring.” It was developed by the courts to establish the value of a loss, in civil claims. The maxim has been perhaps over-used in central Europe, where if you recklessly drive your car and run down a farmer’s laying hen, you can be held liable for for not only the replacement cost of the chicken, but also the value of its future offspring for the next year–or perhaps even two years if the judge is in a bad mood.
That ancient maxim is important to keep in mind when we consider the slips of paper that we presently carry around in our wallets and call “money.” Most citizens are ignorant about money. The history of money is not taught in public schools, and legal tender laws are taken for granted. Not one citizen in a hundred realizes that we have a currency that is based on debt. (Most mistakenly believe our currency has some connection to the gold stored at Fort Knox. From a practical standpoint, there is no connection whatsoever)
There is no substantive backing behind the US dollar and the world’s other fiat currencies. But it wasn’t always this way: Up until 1933, our currency was “bi-metallic” and was 100% redeemable in gold and silver. Gold and silver certificates were issued, that read “Pay the bearer, on demand…” Then, in the midst of the Great Depression, the FDR Administration craftily banned private possession of gold coins and bullion. Any non-numismatic gold coins in circulation were called in, by executive decree. The government “paid” for these at face value, with paper money–$20 in Federal Reserve Notes in exchange for each $20 gold piece. Any gold bullion not already in government hands was “purchased” at the officially pegged price of of $20.67 per ounce. The only exceptions to the law were for a limit of $100 face value of gold coins for each private citizen, gold nuggets, gold dust, and dental gold. (FDR’s bully boys didn’t go quite so far as to pry gold teeth out of pensioner’s mouths.) Then, shortly after the owners of this small mountain of gold had been duly “compensated”, the government raised the official price of gold to $35 per ounce, realizing a tidy profit. This was nothing short of legalized grand larceny. After 1933, US citizens could no longer redeem their paper money for gold, or possess gold bullion. (Private ownership of gold bullion was banned in the US from 1933 to 1974.) The redeemability privilege was reserved to foreign banks and governments, who could still demand gold. This redeemability “window”was kept open so that the US Dollar did not suffer in foreign exchange. Redemptions in gold started to increase dramatically in the 1960s, once the open market value of gold rose above $35 per ounce. When given the choice of paper money and gold, many trading partners quite logically chose gold. (Economist John Maynard Keynes might have decried gold as a “barbarous relic”, but realists opt for genuine value whenever they can.)
While the American citizenry was getting fleeced, similar abandonment of the gold was going on elsewhere. For example, Australia stopped minting gold sovereigns in 1931. The same happened in England in 1935. France went off the gold standard in 1936, much to the detriment of the Franc. By 1959, the French Franc had just 1/40th of the purchasing power that it had in 1936. Nation after nation went off the gold standard: Argentina, Brazil, and Canada in 1929; Australia, New Zealand, and Venezuela in 1930; Austria, Denmark, England, Germany, India, Mexico, Norway, and Sweden in 1931; Greece, Romania and Yugoslavia in 1932; Honduras, South Africa, and teh U.S. in 1933; Italy in 1934; Belgium and China in 1935; and France and Switzerland in 1936. On and on, they eventually all succumbed and gave up both minting gold coins and providing convertibility.
Even though gold had been banned, for the next three decades Americans could still redeem their paper dollars for silver. Silver coinage circulated freely, trading 1-for-1 with paper dollars. But in 1965, the US Treasury stopped minting 90% silver content dimes, quarters and half dollars. The dimes and quarters were replaced with cupronickel tokens that were merely sandwiched with a thin layer of silver, so that that they would still look pretty. (The copper visible on their rims betrays the perfidy that lies beneath the silver veneer.) The new coin issue, although blatantly unconstitutional, went largely uncontested. Once the”clad” coins entered circulation, people quite logically started to hoard every 90% silver coin that they could find. (This was Gresham’s Law in action: “Bad money drives good money out of circulation.”) To not appear entirely sans cullottes, the Treasury still produced half dollars with a reduced 40% silver content, for another five and a half years (from 1965 to 1970.)
Once clad coinage entered circulation, the value of the hoarded pre-1965 silver coins naturally started to rise. Now accumulated in rolls and in $500 or $1,000 face value bags, these coins sell as a commodity. (As bullion, rather than as numismatic coins.) Their value is calculated by their silver content at a multiplier to Federal Reserve Notes (FRNs). Currently, that multiplier is around 14.2 times their face value. Hence, a $1,000 face value bag of pre-’65 quarters at present wholesales for around $14,200.
Similar debasement of silver coinage took place worldwide in the 1940s, 1950s, and 1960s. Country after after country phased out minting silver coins, as part of “demonetization”. England started the trend when they stopped minting circulating silver coins in 1946. As I recall, some of the last countries to mint circulating silver coins with 50% or more silver content were: Canada and Switzerland (until 1967), Lebanon (until around 1969, IIRC), and France (until 1974).
All over the world, if one of the old silver coins now accidentally slip into circulation, it is quickly snapped up and hoarded. Gresham’s law is in full force, globally. In the present day, just copper, nickel, cupronickel, zinc, and aluminum tokens are in circulation. Granted, many mints still produce gold and silver coins, but those are intended for the collector and investor market. They are not intended for circulation, and few of them are still considered legal tender.
On June 24, 1968–a sad day–the US Treasury ended redemption of silver certificates for bullion or pre-1965 coinage.
In 1970, the last circulating US silver coins–the 40% silver half dollars were phased out, putting the last nail in the coffin for the dollar as a genuine currency. All that we have now in circulation are unredeemable FRN “notes” and tokens that–other than nickels–now have a metal value that is far below their face value. (See the Coinflation web site for details on metal content and the real value of circulating US coins.)
On January 1, 1975, it once again became legal to own gold bullion in the United States. A personal aside: When I was 16 years old, I rode my bicycle to Bob’s Coin Corner and bought my first Krugerrand. That was in 1976. I bought that coin with money that I had saved from mowing lawns and working at the local library (the latter, for $2.05 per hour). As I recall, that 1975-dated one ounce Kruger cost me $155. I spent a lot of time fingering it, feeling its heft in my hand, and admiring the design–especially the Springbok on the reverse side. Holding it in my hand, I knew that it was real money. I sold that coin in early 1980 for $715. Soon after, I invested the profit in my first M1A and my first Colt M1911 .45 Automatic. I’ve bought and sold a lot of gold and silver coins since then, but that first shiny Kruger–and its hiding place under the corner of my bedroom carpet–hold a special place in my memory.
By 1981, the US Dollar had become so debased that the copper metal value of the lowly penny exceeded its face value. So Congress authorized the US Treasury to replace them with zinc tokens that are merely flashed with copper. (Recently, the penny has become an embarrassment, since in these days of inflated dollars, the worthlessness of the penny has become blatant. (Even “penny candy” sells for 5 cents or more.) There have been calls to do away with penny coins entirely.)
In 1971, facing a massive hemorrhaging of gold, president Nixon closed the “gold window” for redemption by foreign banks and governments. Many foreign governments, most notably France, raised howls of protest. John Connally, who was the Treasury Secretary at the time, had the nerve to comment “It may be our currency, but it’s your problem.” He was able to be snide about it because he knew that the US was the dominant nation in global commerce, and that the US Dollar would continue–based on sheer inertia if nothing else–to carry on as the world’s reserve currency. It has indeed carried on, despite its unredeemability. But ever since 1971, the dollar has suffered markedly in foreign exchange. Today, the US dollar seems about ready to lose its reserve currency status.
Let’s get back to the legal maxim that I mentioned at the beginning of this post: What is the real value of a “dollar”? The current Federal Reserve Notes (FRNs) are only redeemable for other Federal Reserve Notes. You can of course use them to purchase goods and services, but with FRNs you are at the mercy of inflation. In contrast, “junk” silver coins are essentially inflation proof. Times may change, but today you can still walk into your local coin shop and salvage some value from the paper notes that now pass for “money.” As I mentioned before, the real money to funny money trading ratio is presently around 14.2-to-1 to buy pre-1965 dimes, quarters, and half dollars. Given the inherent value of the FRN (which is essentially an “IOU Nothing”), I am surprised that the ratio is not already 100-to-1 or higher. I suspect that within a year or two, that ratio will come and go.
I am big believer in tangibles investing. I am suspicious of any investment–aside, perhaps, for some mining shares–that are denominated in dollars. When the currency unit itself is in flux, all dollar denominated investments are risky. I recommend that SurvivalBlog readers first get their essential “beans, bullets and band-aids” squared away, to ensure your physical survival. After that, you might consider investing in other tangibles such as productive farm land, common caliber ammunition, magazines (the kind that hold rifle and pistol cartridges–not the kind that you read!), tools, and other nonperishable barter items. Following that, you might put any excess cash into silver.
‘The US Dollar is not unique. There are now no national currencies that are officially redeemable in circulating gold or silver coins. (Although there are rumors that redeemable gold Dinars and silver Dirhams may soon be widely circulated in parts of the Islamic world.) To various degrees, all of the world’s governments are fleecing their citizens, through legal tender laws, lack of redeemability, restrictions on offshore banking, excessive taxation, currency controls, and inflation. They are all engaged in larceny. It is just the rate and scale of the theft that varies. (In Zimbabwe, inflation is running at the incredible rate of more than 100,000%, annually!)
Currency inflation is insidious and inexorable. Inflation is little more than robbery, in slow motion. It gradually robs us of our buying power, and is essentially a hidden form of taxation. Given the track record of the 20th Century, we can certainly expect inflation to continue. My advice is to protect yourself, by taking some of your greenbacks and converting them into silver. Don’t expect to profit from that silver. (Although there may be some profits in the near future.) Instead, consider these silver coins your fire insurance for the dollar. When the dollar collapses, your silver coins will at least hold their store of value.
Taking the long view, we can look at the current “bull market in commodities” as nothing more than a bear market in un-backed paper currencies. Markets cannot be fooled, at least not for very long. They always find equilibrium. Prices shift. Currencies adjust. Inflation marches on, and the paper money-holding sheeple suffer. But those of us that diversified into precious metals can take solace in the time-proven resiliency of gold and silver.
For any of our readers in Europe that are feeling smug, knowing that they are holding Euros, consider this: All of the world’s fiat currencies are in a race to the bottom. Some of them are just presently farther ahead than others. Eventually, all fiat currencies are all doomed to collapse. The US Dollar will probably be the next to exit the stage. (This is nicely illustrated in a short documentary by a Dutch filmmaker.)
In addition to buying pre-1965 silver coins and barter goods, I have written before in SurvivalBlog about another strategy to combat inflation: Gathering nickels (US 5 cent pieces), before their long-standing 75% copper and 25% nickel alloy is superceded, most likely by just zinc tokens. (This is very likely to happen in 2008 or 2009.) At present, the base metal value of a nickel is about seven cents. (See the Coinflation web site for details on the metallic content and value of a nickel.) In my opinion, getting five cent pieces that have seven cents in base metal value for just their face value is a bargain. Think about it: If you asked a bank teller or a store clerk “Can I have a $1.40 in change for this dollar?”, they would think that you were crazy. But when you get nickels in exchange for a paper dollar, that is effectively what you are getting: $1.40 worth! Although the potential gain for nickel is smaller than with silver, the situation today is not unlike that back in 1963 and 1964. My advice: buy up as many rolls of nickels as you can, at banks and casinos. I predict that in just a few years, nickel rolls will sell at a substantial premium, much like pre-1965 silver coins do now. If silver is the working man’s gold, then nickels are the poor man’s silver. BTW, I should mention that pre-1982 copper pennies are now worth about 2.5 cents each. But since the old and the new issue coins now circulate co-mingled, it is hardly worth your time to sort out (by date) the real copper pennies from the more common post-1981 copper-flashed zinc tokens. But at least for now, you can squirrel away some rolls of nickels. Do so before the debased non-nickel “nickels” get into circulation!
One closing thought: All un-backed paper currencies share the same fate. Eventually, and inevitably they all reach a value of near ZERO, where they are only suitable for use as kindling or perhaps as novelty wallpaper. Someday, the value of the US dollar is bound to collapse. This will most likely be in an orgy of Zimbabwean-scale hyperinflation. After this happens there will doubtless be immediate calls for the issuance of a new “safe” currency. I just pray that our elected representatives have the wisdom to not repeat their old mistakes. Hopefully they will feel convicted to obey the constitutional stricture: “No State shall… …coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts…” Granted, this section was directed at the states rather than congress, but it clearly shows the intent of the Constitution’s framers. Clearly, they wanted our nation to have coinage with genuine tangible value, and sound, specie-backed, currency. The recent dramatic failure of the un-backed Continental Currency undoubtedly weighed heavily on their minds when they drafted the Constitution.
Letter Re: Calculating The Bullion Value of US Silver Coins
Mr. Rawles:
My parents and grandparents gave about $60 face value in junk silver coins, including a few Morgan and “Peace:” dollars. The quarters and dimes are all 1964 and earlier, but some are the 50 cent pieces were made in the late 1960s. (Those are 40% [silver content], right?) With silver now rocketing up past $20 an ounce, how do I determine the current market value of these coins? Thanks, – G.E.T.
JWR Replies: To calculate the silver metal value of 90% silver pre-1965 mint date US dimes, quarters, and half dollars: A $1,000 face value bag contains approximately 715 ounces of silver. Hence, at a spot silver price of $19.80 per ounce, a $1,000 face value bag has a wholesale value of $14,157. That means that “just one thin dime” (with a mint date of 1964 or earlier) is now worth $1.41 in present day funny money.
To calculate the silver metal value of 40% silver US half dollars (minted between 1965 and 1970): A $1,000 face value bag contains approximately 296 ounces of silver Hence, at $19.80 per ounce, a $1,000 bag has a wholesale value of $5,680. So just one of these 40% half dollars is worth $2.84, wholesale. (A few of these, BTW, can still occasionally be found in circulation. Buying rolls of half dollars at small town banks is still a fun sport, with about one coin in 70 found to be 40% silver. Rarely, you might even chance to find a 1964-dated (90%) 50 cent piece. (These are presently worth around $7.10 each.) Oh happy day!
Pre-1929 Silver dollars are a special case, because even dollars that are in very worn condition have numismatic value in addition to their bullion value. Hence, these dollar coins now sell for $17 and up. But for calculating just their bullion value, a $1,000 face value bag contains approximately 765 ounces of silver. Hence, at $19.80 per ounce, a $1,000 face value bag has a wholesale value of $15,147.