Two Letters Re: Bank Runs — Implications for Prepared Families

Jim,
Re the bank runs in the UK and warning about similar actions in the US: I don’t deal much with banks so I have a rather silly question to ask about this situation. If there is a run on a particular US bank that I happen to have accounts/cash in, what actually happens at the bank? Do they close the bank up completely? Can you still access your safe deposit box or is everything shut down? The reason I ask is that if I moved physical cash from my “electronic accounts” to a safe deposit box, will I have access to that box when the bank is closed in a “run” scenario? I realize inflation will go crazy and cash will be worthless, but having some is better than not be able to get to it at all. At least I would have potential access to the cold, hard cash in a safe deposit box. I would also consider moving cash out to other “safe” locations, but I am not really confident about security. There is also the problem with the $10,000.00 cash in/out “restrictions” by the Feds. I already have junk silver coins but I don’t want to convert more of my cash to coin or tangibles in the short term. Any advice? Thanks, – Russ in Georgia

JWR Replies: In the event of a bank run, your local banks’s doors would probably remain open, and you would probably still have access to you safe deposit box. But I still consider leaving precious metals in a bank safe deposit box an unacceptable risk. You never know when a financial crisis could inspire a “banking holiday” (a la 1933) or another ban on private gold bullion ownership. Then, when banks do re-open, there could be some extra scrutiny–most notably an IRS agent (or a delegated bank employee) looking over your shoulder when you access your safe deposit box.

Here are a couple of alternatives a bank safe deposit box:

1.) Hide your precious metals at home, preferably in two well-hidden caches–one small and one large. The small cache would be the one that you could reveal if someone is ever pointing a gun to your head. (Say, for example, a home invasion robbers wearing black ski masks, or perhaps someone else wearing black ski masks.)

2.) A private non-bank safe deposit box company. These are fairly common in the suburbs, but I’ve heard of them in major metropolitan areas. You might have to do some searching to find one near you. This is a poor second choice, because even these firms may be subject to IRS scrutiny in the event of a national financial crisis.

With all that said, I should mention that the likelihood of bank runs in the US is lower than in England. Here is why:

Unlike here in the States, where any deposit up to $100,000 USD is 100% insured (and $200,000 for husband-and-wife joint accounts), England’s deposit insurance system has two tiers. Their Financial Service Authority (the rough equivalent of the FDIC) guarantees 100% of deposits up to £2,000 GBP, and 90% of anything over £2,000 but under £32,000, and, zero for anything above £32,000. So it is safe to assume that most of the people “in the queues” in front of Northern Rock bank branches are people with more than £2,000 GBP on deposit. They are at risk of losing perhaps 10% of their deposits.

Bank runs are largely a psychological phenomenon. There is one apocryphal story about a bank in the midwestern US that placed a newspaper ad offering a free set of dishes for anyone that opened a new savings account. The offer was so good that a line formed and started to extend out the front door of the bank. Seeing the line, passersby assumed that there was a run on the bank, so they quickly extended the queue, intent on extracting their deposits. By the time that the line reached the end of the block, wild rumors had circulated among those in the queue. Some of these rumors reached the head of the line, where at least one early-comer decided to forget opening a savings account and instead asked to close his existing checking account.

Don’t underestimate the ability of people to get panicky. These things can take on a life of their own. Bank runs tend to spread to other institutions, when people start making “just in case”-style decisions. If there are further bank runs in England, I woudln’t be surprised to similar runs in Ireland, Australia, Canada, New Zealand, and perhaps even the United States. And, needless to say, it is the banks most closely associated with home mortgage lending are the most likely to have such problems in the next two years.

Letter Re: Counting the Potential EMP Attack Casualties

Jim,
I don’t understand why the discussion on your blog regarding EMP assumes only ground based and aircraft altitude detonations. It seems to me an equally likely attempt will be a ballistic missile detonation at maximum altitude, such as with a Scud or Chinese one, launched from a freighter off the east or west coast of the US. Al Qaeda is known to own a fleet of freighters which are not well tracked (stolen in hijacks or even purchased outright). Iran, North Korea, Syria, and [Dr. A.Q.] Khan’s rogue network are all working hard to develop a nuclear capability and are hostile to the US. China has advanced nuclear capabilities and is gearing up to attack Taiwan by 2030, Wouldn’t it be convenient if a third party such as Al Qaeda, were to launch an EMP strike at 200 mile altitude of the US just prior to their invasion of Taiwan? China has actively assisted Islamic nations and groups hostile to the US with missile, communication technology, supplies and infrastructure. Those same Islamic countries have a long record of aiding and abetting Al Qaeda and other Islamic terrorist organizations.

While EMP detonations at ground level or in aircraft are also possibilities, a high altitude missile detonation is also highly likely and would have far worse impact. A single detonation at 300 mile altitude or more would inflict damage across most of the continental US and even parts of Canada and Mexico . This worse case scenario would seem to be of great interest to survival minded folks. Limiting discussion to 200 mile radius [of effect] seems unwise.

I enjoy your blog and 99% of your writing is prescient and spot on. This one assumptions therefore stands out as a big gap in risk assessment. Yours truly, – JB in Oregon

JWR Replies: Let’s start with your “terrorists with a Scud” scenario: From what I have read, the maximum altitude of a typical R-11 Scud missile in a parabolic trajectory (vertical or near vertical flight path) is just 78 kilometers (48.5 miles), with a time of flight of 5.4 minutes. The maximum velocity at the time of booster burnout is 1.43 kilometers per second. That is far short of achieving the near-orbital velocity of an ICBM (which if I recall correctly is roughly 6 to 7 kilometers per second). Let’s suppose that a terrorist group gets hold of an operational Scud missile and a compact nuke (with a weight within the Scud’s payload limit and sufficiently small dimensions to fit the Scud’s payload parameters). Even then, the only way that they could achieve the potential maximum 48.5 mile altitude over the Continental United States (CONUS) would be if they launched it within our territory. That isn’t very likely. If they launched a Scud from a barge or a ship say 30 miles off the coast with a depressed trajectory, it might be at most 15 miles up, at apogee, over our territory.

For details on how to calculate line of sight (and hence EMP footprint dimensions), see some of my previous SurvivalBlog posts. (Wherein I also discuss beyond line-of-sight EMP coupling through power and telephone lines.) I’m not a rocket scientist (my name after all, is Jim Rawles, not Jim Oberg), so I don’t claim to be an expert. But I do have a rudimentary understanding of how these things work.

There are only a few nation states that have ICBM technology, and that is essentially what would be required to put an EMP-producing nuke at 200+ mile altitude over the CONUS. It is much more realistic to assume that a Third World nation or a terrorist group would use a jet aircraft (or perhaps, if they were quite clever, a large radiosonde-type balloon) at high altitude in an attempt to maximize EMP line of sight. And, as I’ve previously stated, even the highest flying aircraft would give line of sight to produce an EMP footprint of at the very most a 280 mile radius. It would take 30+ such blasts to blanket the CONUS with EMP.

Yes, nation states like North Korea and China have ICBM technology, but the most likely near-future scenarios involve Osama bin-Laden, not Kim Jong Il.

Odds ‘n Sods:

Thanks to RBS for sending this: U.S. Home Foreclosures Soar in August, Up 36 Percent From July, and Prepare for prolonged turmoil, says US Treasury Secretary. A comment from RBS: “Once again, we have to go aboard to get any [substantive] economic news.”

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Chuck, Joe, and Nathaniel all forwarded us this one: Fears of dollar collapse as Saudis take fright. The article begins: “Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signaling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East”

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From eFinance.com (by way of SHTF Daily): National Association of Realtors Admits to Initiating Bush’s Mortgage Bailout Plan

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Countrytek recommended this set of web posts from someone that housed 30 refugees in the days following Hurricane Katrina. It has some interesting “lessons learned.”

Note from JWR:

The bidding is now up to $450 in the SurvivalBlog benefit auction, for a scarce pre-1899 antique Finnish M39 Mosin Nagant rifle from my personal collection. This rifle was rebarreled by Valmet during WWII, and is in excellent condition. It comes with a replica bayonet, original sling, and original muzzle cap. Since the receiver for this rifle was made in 1898, it can be mailed directly to the winning bidder’s doorstep, with no FFL paperwork! The auction ends on October 15th.. Just e-mail us your bid.

Three Letters Re: Running Chainsaws on Ethanol & Home Alcohol Production Stills

1

Jim:

You can buy a couple of standard jets for the particular carburetor you are working on, then measure the opening in your current carb and add the 38% to the hole size and drill the jet out with the proper size drill. Be sure to go 38% larger in cross-section, not in diameter. – Michael Z. Williamson

 

Jim,
In regards to the article about converting small engines to ethanol, there are a few things to be aware of as far as “being prepared” goes. BATFE regulations: Regardless of what you are making with a still, whether it be distilled water, distilled spirits, or alcohols used for fuel you must register your still, and have a tax stamp for anything you produce. While it is fairly easy to get an experimental fuel distillers permit, you had best make sure all your paperwork, and product is in order in case the revenuer ever shows up.
As far as the practice of making home made alcohol: Alcohol can be made from just about anything, however, the trick is processing it properly. When making alcohol from grains, the cellulose, and more complex sugars in the grain need to be converted into a simply sugar (glucose, sucrose). For anyone who has made their own beer, they are likely familiar with the malting process. In England making whiskey the old fashioned way, they would take the grain, soak it, and then lay it out on what was called a “malting floor” at this point, they would allow the seeds
to germinate. During the germination process, the seed creates enzymes which break down the starch in the plant to sugars to allow growth.
However, once a percentage of those enzymes are created, they will break the rest of the starch down into sugar regardless of the plant continuing to grow.
There are other ways of malting, in the Asian Pacific region, fermented products would be put in the mouth and chewed, mixing them with saliva which contains amylaze and other enzymes which break starch down into sugars. The resulting mash would be spit out and fermented. This process is ideal for potatoes and other starchy plants. Most fruits have a high enough sugar content to be fermented directly. Allowing them to turn a bit usually helps this process along.
When fermenting, it is important to make sure you are creating a perfect home for the yeast you want to turn all the stuff into ethanol. The way to do this is by killing off any competitive fungi or bacteria. This is done by boiling, since it won’t disrupt the environment after the yeast are introduced (compared to bleach or iodine). You must sterilize all glassware, stoppers, and tools you will use, you must also sterilize (by
boiling) the water, and whatever you are going to ferment (now known as the mash). After bringing it all up to temp, let it boil for an hour or two (this helps break down, and dislodge the sugars further).
You can now transfer the mash to your primary fermenter, this is usually a 5-10 gallon carboy, but could also be a 250 gallon pallet container doesn’t really matter, as long as it’s clean. At this point you add the yeast, most yeast needs to be activated first, by putting the yeast in hot/warm water.
In most cases it needs to be a brewers yeast. The primary method by which the yeast functions, is it converts sugars into alcohol, up until the point that it runs out of sugar, or the alcohol content gets high enough to kill the yeast. Thus there are different kinds of yeast depending on what you want–beer, wine, etc. I have heard of hybrid yeasts from New Zealand which can tolerate up to 25% alcohol (twice that of wine).
After a few days to a week (the best way to tell something is done is by waiting for it to stop bubbling) the fermentation should be done. You can now start distilling.

Still types and uses:
I won’t go into some of the more complex issues of moonshining. They often use thumper kegs, worm boxes, and other things I won’t describe since I believe the reflux method to be superior.
Pot stills – A pot still is a very very simple device. It has a pot, and a tube coming out of it which coils around maybe goes through ice water and then dumps into a jar. Controlling what comes out of this still is done entirely by monitoring the temperature of the mash as it’s boiled.
Reflux still – Similar to a pot still, but has a reflux tower on top of the pot. This is usually full of rashing rings, crushed glass, steel wool etc.
The tower is usually made of 1-2″ copper tube and is welded, soldered, or mechanically affixed to the top of the pot. At the top of the reflux tower is a thermometer, and a draw pipe. The draw pipe connects to a condenser.
The refluxing tower can be made more complex by putting draw tubes through it, these tubes will move coolant from the condenser through the refluxing tower allowing better temperature control.

Usage:
The reflux still controls it’s temperature by throttling the fire (usually propane) and by throttling the water moving through the condenser and the reflux tower. Once you have loaded the pot with mash, start to heat it up.
When you get to 75C you will start to see vapor, and liquid come out of the condenser. If you desire fuel, turn on the water supply to the condenser and continue collecting until the temperature goes up to about 99-100C (the boiling point of water). At this point, you should now have a product which is 95% pure alcohol (the 5% is water, which has been absorbed from the air) if you want to keep it legal, you should now add about 5-10% of something noxious, gasoline, MEK [methyl ethyl ketone], or kerosene. Even if you don’t mix it with a denaturing agent, do not drink this, it is full of methanol, isopropanol, pentanol and butenol. These chemicals can cause blindness, liver, kidney, and other internal organ damage. I won’t go into drinking alcohol. But these are the steps to keep in mind for making alcohol.
You should now clean out your pot still. Just to warn you, mash after it’s been processed smells like boiled vomit. So I suggest you do this outside.
As a side effect of this however, you can make another chemical which is very useful as a disinfectant: Acetic acid. Use a beer/win yeast to brew with (giving about 10-15% alcohol by volume) and then allowing it to turn by adding mothers of vinegar (organic vinegar usually still contains mothers). After it turns, you can then distill it (as above) but the boiling point is different, or you can make glacial acetic acid. If you live in a cold climate, simply place the mash outside, and periodically squeeze the mushy ice. The water and other goo will freeze, but the acetic acid has a much lower freezing point. This can be used to wash vegetables, clean medical areas, bathrooms, and can also be added to the laundry to boost the disinfecting power of soaps.
Sorry to be so long winded, but I hope all that fills some gaps. – AVL

 

James,
To correct an inaccuracy in a recent SurvivalBlog post: Having successfully completed the process to build a still and obtain an alcohol fuel producer permit, I can help walk your readers through the process to legally comply with Federal Tax and Trade Bureau (TTB) rules.

TTB licensing is required for all producers of any type of alcohol, including ethanol for fuel uses, for all types of uses. [The TTB now handles the still licensing- which was formerly administered by the BATFE.]Production of alcohol without a TTB license is extremely illegal and a great way to get sent to prison. There are a variety of different types of TTB alcohol production licenses depending on the use of the alcohol and the scale of production. Their primary concern is collecting the stamp tax on drinking alcohol, with safety being a secondary concern. There are a lot of hurdles to get BATFE licenses for drinking alcohol and for production in volumes over ~5,000 gallons per year – these include background checks, bonding, environmental, and location hurdles. However, it is extremely easy to get a TTB license for small volume production of ethanol for fuel and non-drinking applications. See the TTB web site for more information on the rules and application forms. The application is relatively simple. As long as the applicant can pass a standard background check (e.g. not under indictment or previously convicted of a felony) and makes sure not to fall into a couple of traps, approval is automatic and typically takes a couple of months. After you mail in your application, TTB will contact you for a telephone interview about 4-6 weeks after they get your application. Answer their questions honestly, don’t joke about making alcohol to drink, and tell them you want to experiment with ethanol fuels. There are two primary procedural traps that can get one disqualified. The first is the location of the still on the map you provide in your application. It should not be in your home (too much danger of fire). TTB want to see it in a shed or another locked structure separate from the home (even if only several feet away). The second is that you must already possess the still and have it assembled before applying. Once you get approved, you have to file an annual report every January stating how many gallons of ethanol you produced, how many you used, and how many you have in storage. You can also use this annual report to claim federal ethanol producer tax credits, but this is only of value if you produced hundreds of gallons of ethanol. You don’t have to denature the alcohol if you use it [for fuel] on site.

The Amphora Society sells several good books on designing and operating stills for both fuel and drinking applications and sells stills. Their PDA-1 still with the extension has worked very well for me and is capable of producing about a liter of 95% alcohol per hour at the maximum production level. Mile Hi Distilling is another provider of distillation equipment and supplies. For home production, space and storage for fermenting ultimately becomes the limiting factor as most home scale distillation systems simply are not capable of producing even close to the legal limit of your permit. If you are using the ethanol for fuel, you need to remove the ~5% water from the ethanol. This can be done using a 3A, 4A, or 5A molecular sieve. I have purchased and used 3A (3 angstrom) molecular sieves from Delta Adsorbents for about $100 for 25 pounds. Note that molecular sieves can be recycled by heating them in an oven to dry them. – Dr. Richard

Letter Re: Counting the Potential EMP Attack Casualties

Jim,
I am a big fan of your writings but I did have to try to correct a misconception I saw [posited by a reader] on SurvivalBlog. I am an ex-fighter pilot and am well-versed on EMP effects as it did affect my mission at the time. I am now a pilot for one of the major airlines and have been one for about 18 years now. Not all airliners will fall out of the sky as is popularly thought from an EMP. Many airliners still actually fly by cables like the DC 9 and its versions such as the MD 80, 88, and 90. The Boeing 737 has a backup mode that flies the control surfaces (except rudder) by cables, this mode is called manual reversion. Generally, the engines on airliners can still suction feed fuel if the fuel pumps are lost. Navigation is another matter however, I suppose that is where proper pilotage comes in though. A good rule of thumb might be to avoid the European Airbus aircraft in the event of an EMP. If it ain’t Boeing, I’m not going. – Rhino.

Odds ‘n Sods:

The Fed blinks. From Bloomberg: Federal Reserve Lowers Rate to 4.75 Percent, First Cut Since 2003. This rate cut can only spell further weakness in the dollar versus foreign currencies. If the Fed has misjudged the patience and charity of the international financial community (and I think that they have), then be ready for a full scale dollar crisis in the next few months. OBTW, did you notice that spot silver jumped to $13 per ounce and gold to $724 in after-hours New York trading? I told you so…

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RBS sent us this: Fears grow for British economy as panic over Northern Rock spreads

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Iraq’s government decides to expel Blackwater mercenaries.

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Mark and Nathan both suggested this link: Should teachers be allowed to pack a gun?

Jim’s Quote of the Day:

"[T]he militia, sir, is our ultimate safety. We can have no security without it." – Patrick Henry (from the debates over the adoption of the proposed new American Constitution of 1787)

Notes from JWR:

The headlines are full of economic gloom and doom. (For example, don’t miss reading today’s Odds ‘n Sods section.) This is the news that I’ve been warning you about for many months. You can expect things to get much worse before they get better. At least I can rest assured that most SurvivalBlog readers are well prepared.

A reminder that the WRSA has a high power rifle shooting clinic scheduled for this weekend, in Yakima, Washington (September 22-23). These clinics are great way to get high quality rifle shooting instruction for a fraction of what you’d pay at one of the big name shooting schools. Don’t miss out!

There is now less than two weeks left to get your entries in for Round 12 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. I will again be sending out a few complimentary copies of my novel “Patriots” as “honorable mention” awards. Round 12 ends on September 30th. Remember that articles that relate practical “how to” skills for survival will have an advantage in the judging. Today we present another entry for Round 12:

Running Chainsaws on Ethanol, by Brian in Wyoming

One of my hobbies is muscle cars and I have friends that are drag racing fanatics so I am around engines that run on ethanol weekly. Here is what I have learned, If an engine is carbureted and runs on gasoline then it can be converted to run on ethanol (corn liquor). First off a little info on ethanol, it is any distilled spirit in its pure form. Everclear is ethanol, its just expensive due to the alcohol tax the government imposes. Now the ethanol you buy has been denatured so as to make it poisonous to drink and therefore can not be taxed as spirits. Ethanol like gas burns readily under a flame but not with as much energy as gasoline. It burns clean and very dry with almost no reside after it is burned. It also loves to mix with water so making sure you store your ethanol in a sealed container is super important otherwise you will have to re-distill the spirit to remove the water. So here is the deal, you can not just pour ethanol into your gas tank and make it work but it is not that hard for a person with basic mechanical knowledge. First you need to figure out what parts of your fuel system is not ethanol friendly. This is usually the hoses as the ethanol will eat it in short order, I recommend soaking all parts of the fuel system in ethanol for a week to see if anything is affected. Once you know that your fuel system will handle it you can move onto the carburetor. Ethanol contains about 30-40% less stored power then gasoline per unit [of volume]. This is why flex fuel cars get fewer miles per gallon on E85 than pure petrol. This means that you will need to add that much additional fuel to make ethanol reach the correct air/fuel ratio that internal combustion engines love. On a car this means that you need to up the jet size to add more fuel. I usually run a 38-42% increase in my engines but your mileage may vary based on elevation and engine. So cars are easy since it is just a simple jet change but other things are a little more difficult like say chainsaws or small motorcycles. These will usually only have a small amount of jets available to compensate for elevation changes and not nearly enough change for the ethanol conversion, so you will have to improvise. You can buy a couple standard jets for the particular carb you are working on, then measure the opening in your current carb and add the 38% to the hole size and drill the jet out with the proper size drill. Once this is done you can reassemble the carb. Now based on the burning characteristics of ethanol you will need to advance your engines timing to the range of [spark plug ignition] 20 [degrees] before top dead center (BTDC) to 45 [degrees] BTDC, again you will have to experiment with this because I have found that it varies widely based on what that particular engine likes. This is easy on a engine like a cars which is made to be adjusted but can be a huge pain on a smaller engine that has its timing set without adjustment. This is where you will have to investigate your personal engine and see how the timing is set. All engines have a “trigger” that tells it when to spark, to advance that you just have to trick the trigger into firing earlier by modifying the mounts or moving the spark trigger. On a single cylinder engine this is easy since there is only one “trigger” and that is usually based off the crankshaft, but again that varies by engine. That is it, test the fuel system, bigger jets, and advance the timing and now your engine will run on 100% pure ethanol.

Now as I said earlier ethanol does not contain as much stored energy as gasoline so doing the above modifications will result in an engine that will run on pure ethanol it will also run with a noticeable drop in power. So to make up for that you can exploit the fact that ethanol can withstand much higher compression ratios then gasoline without suffering detonation (pinging). Ethanol does not have an “octane” rating since it is not petroleum based but for comparison here I will use that style rating. Most gasoline has a 87 octane rating and ethanol has a “147” octane rating. So what does that mean? It means that you can run a higher compression ratio in your engine to make up for the loss of power. Now I must forewarn you that once you up the compression ratio you are no longer going to be able to run gasoline ever again in that engine. In the drag racing cars we have found that ethanol loves around an 17:1 compression ratio where commercial “pump” gas is around 9.5:1 ratio. Now that is really stout and requires really strong engine parts so I keep my chainsaw and roto-tiller at about 13.5:1 so I don’t break a crankshaft. You will be able to increase the compression ratio by either adding a higher compression ratio piston or by milling the heads down to provide a smaller combustion chamber thus increasing the compression ratio. Once you do this you will find that the engine actually has a lot more power then it did on gasoline.

Now for the downside of ethanol, like I said before it burns very clean with little residue, this also means it has very little lubrication properties for your pistons and valves. In a two stroke engine this is not a problem since you are mixing oil into the fuel anyway so I don’t worry about it at all, Actually I think two stroke engines are the best conversions. On a four stroke engine you will have to add some sort of lubricating additive. We use a little bit of Marvel’s Mystery Oil in the ethanol for the drag cars, but again there are tons of other products out there, Or you can do like me and just run pure ethanol in my roto-tiller since it is not a continuous use kind of machine and I figure the tines will wear out long before the valves.

It is also a little more finicky about storing then standard gasoline because it will absorb water right out of the air, but it also from what I understand has a pretty much indefinite storage life if it is kept sealed unlike petroleum.

We just buy our ethanol locally. You can find it anywhere that sells commercial fuels and kerosene but prices vary widely based on stores so shop around. But the best part is anyone can make their own ethanol right at home. Now I am not all that knowledgeable about this part as I am not a bootlegger (yet) But making ethanol is basically making moonshine. Now I must warn you that making illegal hooch is against the law and the ATF [Bureau’s agents] will be at your door and I assure you that they have absolutely no sense of humor. So if you decide to do this make sure to get the proper permits to do this. From what I understand this is quite simple and is nothing like dealing with the firearms division of the ATF, just explain that you are using it as motor fuel and not spirits.

Once you have your still you can make ethanol out of anything that ferments, i.e. sugar, fruits, grass, hay, grain, corn, potatoes, berries, I think that anything with sugar content will provide the highest yield based on weight and that is why brazil uses sugar cane to produce theirs. Think about all the organic waste you have around you, un-ripened fruit on the tree, garden plants after harvest, grass clippings and soon you see what kind of renewable resource this, and it would be even more important in the event or TEOTWAWKI. Think about how much easier life would be with a roto-tiller, a chainsaw and a four wheeler that you can make fuel for indefinitely, when no one else around you has gasoline.

It is nice to be able to buy your ethanol now and get used to using it and storing it and work out all the kinks that you will run into before you are depending on it for your life. So I am of the opinion that you should do this now to figure out everything so the transition is seamless if something happens. Plus running ethanol is cheaper then gasoline, around a buck a gallon.

There is also a ton of information out there on converting engines, so do your research and learn all you can before jumping into it, remember I have friends that run ethanol so when I have problems I take it to their house. You might not be so lucky in your area.

So you do not need to buy a special engine to run on ethanol, you can just convert any engine with a carb. I have ran my roto-tiller for three years now on ethanol every spring, my chainsaw quite a bit for work monthly, and for the past five years I have ridden a two stroke motorcycle that runs on ethanol without much more of a problem than gasoline. The best part is that with a still you can produce your own fuel at your retreat with almost anything as your mash base. Also one more perk of this is that making ethanol is actually making drinking alcohol so that is another barter item that will be of great value after TEOTWAWKI, to an alcoholic spirits will be more valuable then gold.

JWR Adds: Some special precautions must be observed when making and operating an ethanol still, storing its product, and using it as either fuel or liquor:

1.) Use only uncontaminated ethanol-producing sugars. Otherwise–with wood, for example–you’ll run the risk of making methanol, which is toxic for consumption and causes blindness.

2.) Copper flashing to prevent lead contamination from any soldered pipe joints in the still

3.) General boiler safety (including pressure relief valves) to prevent boiler explosions

4.) In the United States, BATFE licensing is required if any ethanol produced that will be sold for sipping. And presumably the portion sold for use as fuel must first be denatured.

5.) Tightly capped containers for your finished product, since ethanol is highly hygroscopic–it rapidly absorbs moisture from the air.

6.) Most gasoline engine fuels tanks and fuel systems are not suited to alcohol. This one reason that I recommend buying “Flex Fuel” (E85 compatible) vehicles, whenever possible.

7.) Alcohol burns with an almost invisible flame, so any leak in a fuel system can cause a particularly dangerous vehicular fire.

(See this distillation safety guide as well as this piece from Backwoods Home magazine for further details.)

Letter Re: Advice on Police Department Trade-In Guns

Hi Jim,
I saw the posting about police trade-in guns and thought I could weigh in both as a cop and as a law enforcement firearms instructor and armorer.

Cop trade in guns can be a real steal if a buyer understands a few things. First, a majority of trade-in guns are low mileage, high wear guns. What that means is that the guns will often see anywhere from minimal to extensive holster wear. However, in this day and age, a majority of cops are not routine shooters and therefore, rarely shoot their assigned duty pistols. If a buyer has the ability to look through whatever collection of trade-in guns a dealer may have, it behooves them to do so to find the low wear low mileage gem. Second, most cop guns are expected to be serviced and internal parts inspected at least yearly. Some of these guns may have new internals not replaced by the manufacturer if an agency upgraded with the same manufacturer (Such as older Sig 239s for newer ones). Many “previously owned” guns like SIGs “certified pre-owned” (CPO) have refurbished internal parts. Third, because the guns are used, their prices are much better than [buying] new. As an example, a current vendor is selling Generation 2 Glocks 22s and 23s for 1?2 to 2/3rds of the usual new gun price.

As always with trade-in guns, caveat emptor. But they can be a real steal! When my trusty Generation 2 Glock 22 duty pistol is retired and traded, I already have a deal set-up with the distributor to buy it back for sentimental reasons. Best Regards, – MP in Seattle (10 Cent Challenge subscriber)

Odds ‘n Sods:

Frequent content contributor SJC suggested this article by Michael Panzner: The Time to Panic is When Those in Charge Say “Don’t Panic”. JWR’s comment:The bank run that Mr. Panzner mentioned (at Northern Rock–a mortgage lender in England) could very well spread to other banks primarily associated with mortgage lending, and then in a worst case, if a fevered bank run ensues, all banks. Here in the States, the public’s trust in the FDIC and FSLIC insurance will probably slow any bank runs, but the end result may be long delays before deposits can all be paid out, and even lengthier delays while the Treasury cranks up the printing presses to print up the requisite cash. (With a fractional reserve banking system, only a small fraction of the total deposits exist in the form of printed cash money.) Yes, Uncle Sugar can eventually make good on their bank insurance promises, but they will have to print mountains of $100 bills to do so. In a worst case situation you might only get a cashier’s check, and then have no place to cash it. Following any widespread bank runs, once people have lots of cash in hand they will understandably want to convert some of it into tangibles. Thus, big bank runs will be highly inflationary at the consumer level. Fundamental market laws are inescapable.

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From SHTF Daily: World’s banks hit for $30 billion in credit crunch

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Found at The Economist web site: Still hanging on–How far, and how fast, will the dollar fall? The article begins: “For several years, the darkest scenarios for the world economy have involved a dollar crash. The script was simple. America’s dependence on foreign capital was a dangerous vulnerability. At some point foreign investors would refuse to pile up ever more dollar assets. If investors were spooked, say by a crisis in American financial markets, they might ditch dollars fast. The greenback would plunge. A tumbling currency would prevent the Fed from cutting interest rates, deepening and spreading the economic pain.” Gee, this sounds a lot like a novel that I once read wrote.

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Steve in Iraq forwarded us this link Former Fed Boss Says Euro Could Replace U.S. Dollar As Favored Reserve Currency. Meanwhile “Mr. Magoo” Greenspan was also quoted by The Daily Telegraph, as stating that Britain is in some ways more vulnerable U.S. real estate market. Specifically, Greenspan said; “Britain is more exposed than we are – in the sense that you have a good deal more adjustable-rate mortgages.”

Jim’s Quote of the Day:

"Let me now reassure you, your money is safe with us and if you want some, or all of it back, then you are perfectly entitled to it. Whilst you may have to wait a little longer than usual to receive it, you will get it." – Adam Applegarth, Chief Officer, Northern Rock Bank, (The fifth largest mortgage lender in England), September 14, 2007

Note from JWR:

The bidding is already up to $350 in the SurvivalBlog benefit auction, for a scarce pre-1899 antique Finnish M39 Mosin Nagant rifle (7.62x54R) from my personal collection. This rifle was rebarreled by Valmet during WWII, and is in excellent condition. It comes with a replica bayonet, original sling, and original muzzle cap. Since the receiver for this rifle was made in 1898, it can be mailed directly to the winning bidder’s doorstep, with no FFL paperwork! The auction ends on October 15th. Just e-mail us your bid.