Letter Re: Just In Time Greenback Cash Supply for American Banks

Mr. Rawles,
I worked for Loomis/Fargo as an armed security technician. That means I was a member of an armored car crew. We serviced nearly the whole quarter of a certain state [un-named–not my current state of residence]. This included a major US Air Force base.

Once a week we made runs to the area banks to deliver cash. Usually our load [included] 1 to 2 tons of coins.
Cold cash totals were in the 1 to 3 million area each week and sometimes up to 5M seasonally.

Very often we would arrive at a bank and the tellers would say to us, “thank God” you are here! We are down to the last $1,500 or $3,000 in cash. Very frequently the banks on the days of our runs were nearly out of [Federal Reserve Note] bills to service customers.

Just in Time (JIT) inventory systems for WalMart and big box stores are well known. Less known are the JIT deliveries of cash to banks.

The bottom line is that they will run out of cash in a flash if events happen that put people into a panic mode. The Loomis/Fargo company runs regional [statewide] mini Federal Reserve depositories of coins and cash. I have seen bundles of cash in one that would require a U-haul truck to handle.

So, if elements of chaos spread across an area and the natives get to taking charge, then what do you think Loomis/Fargo is going to do about their armored truck runs? Yes, they will cancel them in a hurry.

Fact: Banks do not keep much cash on hand. Projection: The banks will run out of cash in a crisis, so get your cash stash established now.

Personally, I think that if paper money tanks because so much of it is in existence or on a ledger/computer; that eventually coins will have an enhanced value. The government is not mass producing new coins. So include in your stash a substantial amount of quarters and half-dollars.

Potentially, how much money can you put into an automated teller machine (ATM)?: I have put $250,000 a week into an ATM in a large mall in the state where I worked.

On another note: Gas here in western Oklahoma yesterday was still $3.69 in my town and $3.47 on I-40 and Saturday in Oklahoma City it was $3.439. – J. in Oklahoma

Odds ‘n Sods:

From Naish Piazza’s blog: I Love This Little Girl… and So Will You. OBTW, speaking of Front Sight, don’t miss out on their “Get a Gun” training and gear package offer. This offer will probably end soon, so don’t hesitate any longer!

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Our hard working Economic Editor Cheryl N. sent us an enormous batch of news and commentary. Note, BTW, how many of these highlight the derivatives market: Meltdown Shakes Up Wall Street Workers—Wall Street Crisis Could Put Fed Rate Cut Into Play—Stocks Tumble Amid New Wall Street Landscape—Obama, McCain Blame Economic Woes on Greed, Policy—Greenspan: US In “Once-In-A-Century” Financial Crisis—Tectonic Shift As Lehmans Fails and Merrill Sold—AIG Allowed To Borrow Money From Subsidiaries (Portfolio Plummets)—Black Monday: FTSE Plunges 212 Points As Global Markets Tumble After Lehman Collapse/BofE Injects 5 billion pounds into money markets—Frantic Day On Wall Street As Banks Fall—Wilbur Ross: Possibly 1,000 Banks Will Fail In Coming Months—Dangerous “Lehmers”—The Rise and Fall of Lehman Bros—Doomed Lehmans Now Bros. Grimm—Derivatives Market Traded On Sunday To Cut Lehman Risks—Silences Say It All—Implications of a 10-Day Refinery Outage—Stocks Plunge 500 Points; $700 billion in Wealth Erased—AIG Workers On Edge At Once-Safe Company—Is This The Death Knell Of Derivatives?—UK Bank Customers Urged Not To Panic—The Death of Wall Street, Part 1—Stocks Get Pummeled—Bush: Markets Are Resilient and Flexible (bwahahahahaha!)—Pimco, Vanguard Are Biggest Lehman Bond Fund Losers—AIG’s Reported Sales Likely To Draw Many Bidders—Fed Injects $70 billion in Banking System—Americans Should Worry About Bank Deposits—Lehmans Is Dead: Where’s The Crime Scene Tape?—The Other Gulf Surge Tide—Deleveraging Not Deflation Resulting in Commodities Temporary Violent Correction—Lehman’s Bankruptcy: The Ultimate Wall Street Derivatives Defaults Nightmare (this one is a must read!)—AIG, Lehman Shock Hits World Markets—AIG Seeks HUGE Loans As Stocks Dive 61%–and, last but not least (and as partial confirmation of what I predicted): Merrill Bailout Disguised As Buyout.

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Justin B in Phoenix recommended reading a post over at the Tom Bowers Subguns Forum: My Houston Hurricane Story or “How BCR’s Roll” (This post actually dates back to Hurricane Rita, but it is a useful illustration of the value of well-orchestrated family preparedness.)

Jim’s Quote of the Day:

“In financial crises, your actual capital adequacy and liquidity does not matter. Both Lehman Brothers and Bear Stearns — and Lehman particularly — were felt to be adequately capitalized only days before their fall. But once people thought that the end was near, the trading stopped, liquidity dried up, and the capital fled.” – Steven M. Davidoff

Notes from JWR:

I was saddened to hear that Chuck Karwan passed away last week, following open heart surgery. He was an exemplary American, a USMA West Point graduate (1969) that served in Vietnam and elsewhere (1st Cavalry Division (Airmobile), 5th Infantry Division (Mechanized), and the 5th and 10th Special Forces Groups), and was a noted writer on knives and military firearms. He will be missed, especially by his friends in Oregon.

The SurvivalBlog Benefit Auction ends tonight (Monday, September 15th) at midnight, eastern time. The high bid is now at $580. The auction for a mixed lot that includes: Two cases of Mountain House freeze dried foods in #10 cans, (donated by Ready Made Resources–a $320 value), a NukAlert radiation detector, (donated by KI4U–a $160 value), a Wilson Tactical COP tool, (donated by Choate Machine and Tool Company, a $140 value), a DVD of 480 E-books on Alternative Energy (donated by WK Books–a $25 value). Please e-mail us your bid, ASAP.

Letter Re: Some Thoughts on Water Conservation WTSHTF

Jim:
Here are some random thoughts that I’d like to share on water conservation, for when the Schumer Hits the Fan (WTSHTF):

Latex or nitrile gloves – Minimizes the use of water for cleaning up after a dirty chore. The nitrile gloves sold by Costco seem to be the strongest and do not oxidize like latex. [JWR Adds: The cost of nitrile gloves bought in bulk is so low, that they are well worth using. They are particularly important to use when handling dyes, paint, strong acids (such as during battery maintenance), strong bases (such as when making soap or when putting lime in an outhouse pit or a carcass pit), pesticides, herbicides, fuel (filling kerosene lamps or transferring gas to or from cans), or motor oil. (Used crank case oil is of particular concern, since it has been identified as a carcinogen.)

Reynold’s Oven Bags – Use inside a cooking pot to minimize clean-up. They can also be used outside a solar cooking to to retain moisture and heat. These shorten the cooking time for both solar and conventional ovens. hey are strong and thin. They can also serve as an impromptu canteen. (Put a couple of them in each outdoor survival kit.)

A small rubber primer bulb for out bard motors – Use as a foot pump for tubing from a water source to a water basin.This provides controlled”one person” water delivery. I use vinyl tubing connected to piece of 1/4″ diameter copper tubing that was bent nearly 90 degrees for the “faucet.” This uses just a small fraction of the water that is normally expended with a traditionally-plumbed sink.

Funnels. – Buy several of these of various shapes and sizes, to reduce spills.

Garden pressure sprayer – Buy a new, clean one (not contaminated with chemicals) to rinse kitchenware. BTW, we found that they had too fine a spray for use as a bathing shower.

Clothes wringer – Efficiently wrings gray water out for wet clothes. This water can be re-used for toilet flushing.

Basins – Use plastic basins to wash and rinse dishes or to hand-wash small batches of laundry .This again saves gray water for re-use.

Whitewater Rafting Dry Bags – Can be used to prevent items from getting wet, or can be used as a “clothes washer.” Add hot water and powdered laundry detergent and agitate.
– Doc Anonymous

Letter Re: Advice on Gauging the Safety of Individual American Banks

James:
Howdy, I haven’t been able to write or e-mail much these last few months as I have just moved from Detroit, Michigan, to Montana. Having just completed this relocation, and unfortunately not having been able to complete my prep for the move as well as I would have liked, I was wondering if you had any info on banks here? I am living about 70 miles west of Missoula, Montana.
Thanks in advance. – Warhawke

JWR Replies: Well, congratulations on your move and cue the Merle Haggard music!

I don’t know much specifically about the state-chartered banks up in Montana. The good news is that Montana was not a housing bubble mania state like California, Nevada, Arizona, and Florida, so most Montana banks should still be safe. (Anyone living in the housing bubble states should be quite concerned about bank failures.) But, regardless, I strongly recommend that all SurvivalBlog readers in the US follow the link to Weiss Research, in this recent SurvivalBlog article. They can give you an honest appraisal of the relative safety of most banks.

Letter Re: Recommended Preparedness Focus for a Dentist in Kansas?

Dear Sir,
It was James Howard Kunstler who alerted me to the problems that has caught so many other people unawares in early 2002. Alas, although we’re light years ahead of our fellow citizens in terms of preparedness, we’re many parsecs behind the majority of your readers! We do have about six months of food on hand (which keeps growing each day), plus containers for water storage and filters for water purification. We have some basic medical supplies. Our “battery” has been augmented including the storage of several hundreds (although not thousands yet) of rounds of ammunition. Soon, I’ll have a basic reloading set up. I’ve been buying whatever high-quality tools I can find, whether it’s a 1930s #8 Stanley plane or a King of Spades shovel. Our organic garden is growing each year. We’re not squeamish so we’ll probably be gray-watering and humanuring as soon as it is feasible. My wife is a green thumb and is becoming an expert on foraging: she knows every edible plant/mushroom in Kansas!

So all hope isn’t lost but there is so much to be done. Which brings me to my point: thanks ever so much for this incredible resource!
But I have one question: knowing the little that you do about us (family of four, in rural Kansas, slightly-prepared but not much) what would you recommend as being our first priority? What products/skills should I spend the next year focusing upon? Thanks again, – SF, DDS, in Kansas

JWR Replies: My recommendation, particularly for anyone living in the Plains States and most of the western US is that water should be your top priority, including roof downspout rain barrel conversions, and locating any nearby creeks or reservoirs where you can collect water, and the means to transport and treat it, even if you are ling “Grid Down” and don’t have gasoline available to operate motor vehicles for hauling water..

In the next year, take advantage of as much free and low cost training as your schedule permits. (Red Cross, WRSA, et cetera.) Next, move on to more sophisticated training, as your budget permits. (Medical Corps, Front Sight, OnPoint Tactical, et cetera.)

Since you are a dentist, you might think in terms of operating a minimalist general dentistry and dental surgery practice without grid power. Stock up on expendable supplies. Search for old-fashioned/alternative equipment. Buy a full-up photovoltaic power system if you can afford it. You might even be able to find a foot-powered dental drill. These are now considered museum pieces, except in the Third World, where they are still in limited use.

As I’ve previously mentioned in SurvivalBlog, I have some very strong reservations about the humanure approach. To be done safely, it takes very close temperature monitoring, and that might prove difficult in a grid-down post-collapse environment. I also consider it unfeasible for handing waste at a remote retreat that is only occupied for part of each year. (Ideally, it would best done at a rural farm or ranch that has at least five residents that are living there year-round.) In my opinion the risks far outweigh the rewards for most of us.

Odds ‘n Sods:

Craig R. Smith of Swiss America asks: Will government bailouts spell end of dollar? (A hat tip to Jack in Texas for the link)

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TheOtherRyan over at TSLRF (one of the eight-or-so blogs that I read frequently) posted a succinct and commonsense list: 10 commandments for buying gold and silver

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One of my “Secret Squirrel” contributors mentioned that because the price of 128 MB and 256 MB USB memory sticks (aka “jump drives” or “USB thumb drives”) has dropped to less than $2 each, readers that want to contribute any articles or lengthy letters to SurvivalBlog can now do so more anonymously, by simply snail mailing them in MS-Word format or RTF loaded on a “stick”. Just tape them onto folded a piece of stiff cardboard and use a standard size envelope. This way there will be no e-mail trail. It will also save me many hours of laboriously keying-in hard copy articles, and eliminate the risk of transcription errors. My only special request is that because of software compatibility issues, please be sure to send multiple copies of the files on the stick in various formats, including plain text (“TXT”), Rich Text Format (“.RTF”), and Microsoft Word (“.MSW”). Once I’ve copied and then deleted the files, I will pass those sticks along to soldiers deployed in Afghanistan and Iraq. (I’ll pack them in my regular Any Soldier program gift boxes.) Our current mail forwarding address is: Jim Rawles, P.O. Box 303, Moyie Springs, Idaho 83845. Thanks!

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Eric mentioned this piece in The Toronto Sun: Head for the hills–U.S. economy collapsing under debt

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Cheryl N. (SurvivalBlog’s Economic Editor) sent us some more news and commentary that she gleaned from her web research: Gov’t, Wall Street Race To Save Lehmans—Bailout for Lehman Not Likely—Warning: 30 Airlines Will Go Bust This Year—August Foreclosures: Another Record High—US Housing Bear Market Nowhere Near Bottom—Lehman Brothers teeters on verge of collapse as Barclays pulls out

Jim’s Quote of the Day:

“…we have yet to see a genuine effort by our national security leaders to engage the public to frankly and openly inform them on where we face major threats, how best the community should better protect itself and improve risk reduction measures. In fact the reverse is true: a range of government reports relating to Australia’s ability to respond to large-scale emergencies have been embargoed on the grounds that to share that information with the public would only serve to frighten people.” – Australian Strategic Policy Institute Strategic Insights Newsletter # 39 – Taking a punch: Building a more resilient Australia

Notes from JWR:

Our prayers go out for the citizens of Texas. Hurricane Ike made landfall with quite a wallop. More than four million people are expected to be without utility power for days or perhaps weeks. Thankfully, it has been downgraded to a tropical storm, but as of this writing it is still doing damage as it makes its way through Texas.

It is gratifying to see how much the SurvivalBlog readership has grown, particularly in Australia and New Zealand, and Indonesia. Welcome aboard! BTW, we are actively looking for correspondent in Australia and Indonesia, to keep us up to date on political, economic, and social issues related to preparedness. Like our other correspondents, you’d only be in it for the glory, plus the occasional free book or sample product.

The SurvivalBlog Benefit Auction ends tomorrow night at midnight, eastern time. The high bid is now at $570. The auction for a mixed lot that includes: Two cases of Mountain House freeze dried foods in #10 cans, (donated by Ready Made Resources–a $320 value), a NukAlert radiation detector, (donated by KI4U–a $160 value), a Wilson Tactical COP tool, (donated by Choate Machine and Tool Company, a $140 value), a DVD of 480 E-books on Alternative Energy (donated by WK Books–a $25 value). Please e-mail us your bid soon.

Letter Re: Generating Photovoltaic Power When Grid Power is Available

Jim:
I agree completely with your comment that [photovoltaic] solar systems should not be grid-tied to run the meter backward [to isolate the photovoltaic system from potentially devastating coupled electromagnetic pulse (EMP).]

When the grid is available to home or retreat, I believe it is worth connecting. It is the easiest way to deal with barns, 220 volt tools and wells, but some thought to solar wiring can go a long way. Many custom homes and retreats were built with home-run wiring before the price of wire jumped so high. A number of these homes and retreats can be solar-controlled simply by DPDT switching circuit wiring at the fuse box.

Think of two modes – solar when the grid is up and solar when the grid is down. The thing many people have not thought through is how to utilize their solar power when the grid is up and they make the lazy choice to grid-tie to realize the value from their solar system. Grid-up, I run a server and a large desktop computer from solar. Grid-down, I only run my laptop and have to control my well (dual 110 volt inverters) versus my refrigerator and chest freezer so they do not run at the same time. Grid-up, all my barns, refrigeration and 220 VAC is on the grid and most other 110 VAC is off-grid. When I leave the property, the grid tie is broken (I don’t need the well then.) and all phantom loads, lighting and refrigeration are solar run.

All my computers are hooked to my computer network by wireless cards. My television is wireless as well. This was very difficult to do because I have Charter [Communications, Inc.] high-definition cable [television service.] It took a broad-band wireless repeater between the converter box and the television. My solar system utilizes all available solar power and protects me fairly well from EMP. My home/retreat has well-insulated metal siding and metal roof for some added fire and EMP protection. – SAR

Letter Re: A Resource on Make-It-Yourself Backpacking Gear

Hello,
I came across this web site and thought I’d send you the link to a page at Backpacking.net: Make Your Own Gear! I can’t even sew my shirt buttons back on, but maybe it would be of use to other readers. [JWR Adds: Don’t miss the individual plans in the left hand bar.]

By the way, I gave your novel a good review on Amazon.com. Most everybody did. But I included a motivational quote in it that really means a lot to me. I heard it from an Amway tape many years ago:
“I will do today what others will not do, so I can do tomorrow what others cannot do”. I think it really speaks the survival mindset.

Have a great day, – Rod McG.

Odds ‘n Sods:

SurvivalBlog reader “Cyberiot” mentioned that readers with concerns about pandemic flu may be interested in a new and growing online storybook sponsored by the Centers for Disease Control and Prevention (CDC). “Pandemic Influenza Storybook: Personal Recollections from Survivors, Families, and Friends” includes first-person accounts of the 1918 and 1957 flu pandemics. Readers are encouraged to contribute their own recollections. Speaking of flu pandemics, earlier this year, New Scientist magazine published a detailed analysis of how a 1918-scale influenza pandemic would affect the US economy.

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I’ve heard from a reader that he plans to attend the ASPO Peak Oil Conference in Sacramento, California, later this month. When you attend events like these, please wear a SurvivalBlog t-shirt or hat, or carry one of our tote bags or messenger bags. You may be surprised who you bump into! (And we need all the publicity we can get.)

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Range Rat sent us this article: Survey finds holes in US disaster preparedness. Range Rat’s comment: I think they are trying to go against basic human nature trying to get parents to evacuate without their children. No wonder 63% won’t go along with the plan. I’m shocked that 37% said that they would!

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Our Economic Editor sent us another raft of news and commentary: The Feds Are Running Scared, Feds Considering Bringing Fannie, Freddie On To Budget, “Let Them Eat Cake”, Pareto’s Bazooka, Calling US Bonds Home, Deployed to the Dole Line (The Mogambo Guru), Stop the Bailout, Bailouts Will Push US Into Depression, WaMu Downgraded to D+, and BofA Says Losses Have Shifted to Commercial Loans.

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John Embry comments on the coming bounce in precious metals prices: When gold is gone, market will go nuts. I concur that the price of gold is currently undervalued. It is a good time to buy physical gold! (Buying junior gold mining shares is much more risky, but the potential profits are larger.)

Jim’s Quote of the Day:

"He answered and said unto them, When it is evening, ye say, It will be fair weather: for the sky is red. And in the morning, It will be foul weather to day: for the sky is red and lowering. O ye hypocrites, ye can discern the face of the sky; but can ye not discern the signs of the times?" – Matthew 16:2-3

Notes from JWR:

Note from JWR:

I was saddened to hear that Chuck Karwan passed away last week, following open heart surgery. He was an exemplary American, a USMA West Point graduate (1969) that served in Vietnam and elsewhere (1st Calvary Division (Airmobile), 5th Infantry Division (Mechanized), and the 5th and 10th Special Forces Groups), and was a noted writer on knives and military firearms. He will be missed, especially by his friends in Oregon.

The SurvivalBlog Benefit Auction ends tonight (September 15th) at midnight, eastern time. The high bid is now at $580. The auction for a mixed lot that includes: Two cases of Mountain House freeze dried foods in #10 cans, (donated by Ready Made Resources–a $320 value), a NukAlert radiation detector, (donated by KI4U–a $160 value), a Wilson Tactical COP tool, (donated by Choate Machine and Tool Company, a $140 value), a DVD of 480 E-books on Alternative Energy (donated by WK Books–a $25 value). Please e-mail us your bid, ASAP.