Odds ‘n Sods:

Despite the fact that the price of crude oil has wandered down to around $50 USD per barrel, the spot price of silver is now back up solidly above $12.80 per ounce. This is further evidence that supports my assertion that the price of oil and the prices of precious metals are becoming de-linked. ˆ I expect this price divergence to continue to grow in coming years.

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Commander Zero mentioned that there is another long haul microwave “bunker” and tower site currently for sale in Montana. This one is in open country, near Miles City. (OBTW, my retreat locale preference in Montana is for the western portion of the state–upwind of the missile fields.

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Blazer Jeremy sent us a link about a recent ASAT test by China.

Jim’s Quote of the Day:

“Which part of no doesn’t Congress understand? The First Amendment says: ‘Congress shall make no law…abridging the freedom of speech … or the right of the people to peaceably assemble.’ I don’t see any exceptions there, do you?” – Mark Tapscott

Note from JWR:

There are now just nine days left for you to enter an article in Round 8 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 $1,600.) 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 first edition copies (Huntington House edition) of my novel “Patriots” as “honorable mention” awards. If you want a chance to win the contest, start writing and e-mail us your article. Round 8 will end on January 31st. Remember that the articles that relate practical “how to” skills for survival will have an advantage in the judging.

U.S. Currency Inflation–Is It Time to Knock a Zero Off the Dollar?

There have been many recent press reports about the base metal value of some small denomination U.S. coins now exceeding their face value. (For example 1.66 cents for a pre-1983 copper penny, and 6.65 cents for a U.S. nickel 5 cent piece. The latter may eventually have to be replaced with an aluminum token.) Fearing that they might disappear from circulation, the U.S. Treasury Department recently issued an edict banning the exportation or melting of pennies and nickels. This is a stopgap measure that ignores a much bigger issue: The U.S. currency has suffered from more than 70 years of fairly consistent currency inflation. We have been slowly robbed of our savings, through this inflation. In effect, inflation is a hidden form of taxation. When I was a kid, a candy bar cost a dime, a gallon of gas was 28 cents, and a trip to the movies cost $2 or $2.50, including popcorn and a soda pop. But nowadays, a candy bar costs 80 cents, a gallon of gas is $2.20, and a trip to the movies is more of a $10 o $12 proposition. .Rather than going to the extreme measure of eliminating pennies from circulation or issuing aluminum “nickels” , wouldn’t it make more sense, and be more intellectually honest, to simply knock a zero off of our currency? This was done several times in the last century by countries like Brazil (three zeros, twice within four years), Turkey (six zeros), and Israel (three zeros). It was also done just last year in Zimbabwe (three zeros), but given the continued rate of inflation, who knows the fate of the Zimbabwean dollar?

Here is how it could work here in the U.S.: As of midnight on some pre-arranged night–preferably December 31st–the banks would re-value all accounts, dividing by ten. Hypothetically, say that Mr. Smith has $852 in his checking account, $3,180 in his savings account, and $78,500 in his Individual Retirement Account (IRA). The next morning his accounts would be adjusted to $85.20, $318, and $7,850, respectively. At the same time, everyone’s wages would be divided by ten. Meanwhile everyone would be given one month to trade in their old paper currency, in exchange for a new issue, at a 10 for 1 ratio. (The old coinage would not be changed, resulting in a 10-for-1 windfall for every child with a piggy bank.) The end result: A penny would really mean something again. A candy bar would be back to around 8 cents, and gas would be back to 22 cents. This might sound like a lot of trouble to accomplish, but I can see that it would have several advantages: First, it would re-kindle the concept of savings, which seems to have been lost in recent years. Second, it would highlight the real value of both base metals precious metals. Third, it might subconsciously add to the prestige of the Dollar, since it would probably take four or five Euros to buy a U.S. Dollar. Fourth, It should also be a cue for folks to consider investing in inflation-proof tangibles like precious metals. Fifth, and most importantly, it would increase public awareness of the twin evils of inflation and fractional reserve banking. Then, hopefully, Congress would feel obliged to stop its deficit spending and to do something meaningful to control inflation.

The foregoing is not a serious proposition. Rather, it is more of an object lesson. I realize that the chances of the politicians in Washington, D.C. having the will to do something honest and forthright like this are probably nil. We’ve sent a bunch of spineless worms to Washington. By their inaction, they demonstrate that they are satisfied with the status quo–even if that means the robbery of the American citizenry, in slow motion. Chances are, in 30 or 40 years my grandchildren will probably pay $8 for a candy bar. And then perhaps there will be talk of lopping off two zeros from the once almighty U.S. dollar.

Letter Re: Rail Cars and Run-Flat Tires

Hello James,
I was doing some thinking over the past discussions of those that will have to travel a great distance given a major event to get to their retreat. I understand that this is a less than “safe” idea, but under the scenario of an EMP attack, may be a viable option. Since main [automobile traffic] arteries will be clogged, if you have the foresight to plan your Bugout Vehicle (BOV) as an EMP resistant 4×4 Truck or Van, why not modify the undercarriage to accept train rail gear, or better yet, search for an old retired Hy-Rail truck? This is obviously given extreme circumstances and proof that nothing is operational on the tracks.
I would surmise that trains will be one of the first up and running vehicles as they offer the most cargo capacity with the least number of vehicles after an EMP event. So, think, look, know.
I would assume that one would stumble upon trains that were inoperable along your journey to your retreat making a nice immoveable road block. Lift the running gear, exit the tracks, drive around the deadlined train, and then back onto the tracks.
In a major event, there will obviously be many threats along the way. Given that, I think the numbers will be far less along the train tracks than on the freeways and major thoroughfares. Unless you live in Nebraska, I think most tracks wander in many different directions so it will not be clear to the average Joe without a map, which tracks to take. Not to mention that without a GPS and 6’x6′ signs, most citizens are lost.
With a map in hand, one could bypass major cities or potential problem areas and head cross country, or take a different set of tracks. I am not a train techie, but I think two pairs of manual or hydraulic cylinders, cut out some of the floor boards of the vehicle, and some offset to the inside rims, some sort of homemade track traveler could be had. If the time permits, why not rig up a trailer in the same manner? To clarify, I am not suggesting that the rims of the vehicle become the running gear. My suggestion to offset the rubber tires to the inside is because the centerline of track to track is likely narrower than the centerline of wheel to wheel on your BOV. By setting the wheels to the inside, you could apply ample down pressure on your everyday tires onto the track thus becoming the friction needed to become your drive train.
As a side note I was watching the Military channel a few weeks back and safe and secure vehicles were being highlighted. One manufacturer guaranteed 30 miles on totally flat tires. His device was a two piece doughnut shaped piece that was slipped onto the rim after half of the rubber tire was pressed into place. It almost mirrored a set of drum brake halves except much much larger. Reach in, bolt the halves together, and finish installing the other half of the tire and fill with air. Aside from Loc-Tite [adhesive] and balancing, I can’t think of any drawbacks to such an idea. Width disperses weight. Less weight per square inch and the longevity of the rubber tire is greatly increased. Much more so than the 1/4” wide steel flange of most rims which act as razors to the rubber when a flat happens. [An extra] 30 miles could be the difference between safety and danger. – The Wanderer

JWR Replies: I describe rail car mobility in my “Pulling Through” screenplay. (Which, BTW, is available for free download.) If you opt for this capability, exercise extreme caution and discretion. Get to know the technology, legalities, and customs very well. The best way to do this is to join a “rail motorcar” club. I cannot overemphasize safety in any such endeavor. What you suggest should only be done in extremis on any tracks other than those that you are 100% certain are entirely abandoned. You need to be absolutely certain that the rails that you intend to use are not in use. Failure to do so could be tragic!

A do-it-yourself modification of an existing vehicle for rail use is complicated to do right. You are better off buying either a professionally modified Hy-Rail pickup or a small 100% rail-dedicated motorcar (commonly called a “speeder”), such as the Fairmont speeder that I described in my screenplay. If you get a speeder, be sure to get one that has self-lift/self-turntable capability, as shown in this video. Most railroad companies phased out their little speeders in the 1980s and 1990s and switched to Hy-Rail pickup trucks, for greater versatility. A few might still come up for sale at railroad company surplus auctions, but the prime time for that was more than a decade ago. Prices on the secondary market for speeders is still relatively low, but climbing. Sadly, the days of a $500 speeder” are long gone. Used Hy-Rail pickups that are complete with their rail running gear don’t come up for auction as often as you’d think. This is because the Hy-Rail gear is often switched to a new prime mover once a railroad pickup nears the end of its service life.

One inexpensive option that shouldn’t be overlooked is converting a mountain bike or a light motorcycle (120cc, or smaller) to ride on rails, by means of fore and aft guide wheels, an “outrigger” wheel (or wheels) to ride on the other rail, and a means of locking the handlebars from pivoting. For stability and safety, about 60% of the weight should be on the outrigger wheel. (Hence, with most designs you will always be leaning slightly in the direction of the outrigger. One way of achieving this balance is to position most of your cargo weight on the outrigger side, or even on a cargo rack above the outrigger wheel itself. One alternative is to link two bicycles side-by side with brackets, each riding a rail. (A side-by-side tandem arrangement.) Because railroad grades are mild, it is remarkably easy to ride a bike on rails. The engineering and mechanical skills required for rail converting a bike is simple compared to converting a motor vehicle. But again, all of the aforementioned safety provisos apply.

Regarding “run-flat” tires. These are available on BMW 3-series cars, as well as the Toyota Sienna. Many tire manufacturers now produce them for after-market installation for a variety of cars and light trucks. These include: Bridgestone RFT (Run Flat Tire), Dunlop DSST (Dunlop Self-Supporting Technology), Firestone RFT (Run Flat Tire), Goodyear EMT (Extended Mobility Technology), Michelin ZP (Zero Pressure), Pirelli RFT (Run Flat Technology), and Yokohama. These are all “self-supporting” designs, meaning that they are supported by special sidewall designs rather than a rim-mounted support insert. (The latter would be preferable. More on this, later.) I have an acquaintance that has some.made by Bridgestone, and he said that with normal inflation they have the “feel” of regular tires. I suspect that run flat tires will become commonplace in the next few years, since car manufacturers would surely prefer to save on the space and weight of carrying a spare tire.

I have a bit of personal experience with military run flat tires. Back when I was lured back to the Dirty Big City to take a technical writing job in the late 1990s, I owned an amphibious British Ferret Mark 4 up-armored scout car, which was my intended BOV. (Sadly, I sold it— along with its Valkyrie Arms M1919A4 “turret accessory”–just before we moved back to the hinterboonies.) The Ferret had its original British army issue run flat tires with massive rim-mounted hard rubber inserts. This design is preferable to the typical commercial “self supporting” tire designs. The only brand of commercial run flat tires that I know of that has a military style hard rubber insert (an “Auxiliary Supported” design) is the Michelin PAX System. This requires installation of both special tires and wheels. I consider this design superior to the more commonplace “self-supporting” run flat tire designs. For maximum mobility in a “ballistically challenged” environment, the best of all possible worlds would probably be a vehicle with a central tire inflation system (CTIS)–such as that used on the military HMMWV and its commercial Hummer H1 counterpart–used in conjunction with a Michelin PAX-type auxiliary supported tire system.

OBTW, I once skipped checking tire inflation and drove my Ferret on city streets for nearly 20 miles without realizing that one of the tires was flat and I had been riding on the inner hard rubber support. I didn’t realize my mistake until I was doing my “after operation” checks. (Given the five ton vehicle’s noise, boat-like handling, and top speed of 50 MPH, it would have been hard to have noticed the difference.)

Odds ‘n Sods:

Fed Chief Bernanke warns: Fiscal action needed as America’s citizenry ages

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Here is a handy “locator page” for finding an LDS “storage center” (cannery) in your area. The LDS church graciously makes their cannery facilities available to non-Mormons.

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House Speaker Nancy Pelosi Creates Global Warming Committee. Gee, Nancy, could you send some of your hot air up here? (We just had a whole week of overnight lows around 10 below zero.)

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I just heard that Northern Tool & Equipment (one of our Affiliate advertisers) is offering Free Shipping on UPS Ground Orders over $150. This short term promotion ends on Monday, February 5th. You will need to enter keycode 96304 to receive free shipping on your UPS Ground order.

Notes from JWR:

I just noticed that SurvivalBlog is rapidly approaching the milestone of one million unique visits! To highlight this event, I’m offering a special prize to the one-millionth visitor. If you are fortunate enough to be the visitor that witnesses the SurvivalBlog unique visits counter (at the top of the right hand bar) roll over to exactly 1,000,000 visits then take a screen capture of the page and e-mail it to me. Your prize will be two books: an autographed copy of my novel “Patriots” and an autogrpahed copy of my non-fiction book Rawles on Retreats and Relocation.

It warmed up to 30 degrees yesterday, so The Memsahib did some more ice skating down on the slough. (A shallow side channel at the north end of our property, that leads into The Unnamed River (TUR.)) She is becoming quite the skater. In fact, she can skate better backwards that I can forward! The Memsahib looked very fetching in her hand spun, hand-dyed, hand knit sweater. Ooooh! Very Sonja Henne. Sometimes she makes it hard for me to concentrate on my work. We’ve been married nearly 20 years but we are still madly in love.

Letter Re: How to Reply to “When the SHTF, I’m Going Over to Your House”, by Rolf in the Northwest

Jim,
I liked Rolf’s idea for a reply to the “I’m coming to your house” comments. I like to say: “If you got in a car wreck, you wouldn’t expect my car insurance to cover it would you? No, of course not, that’s what you have your own car insurance for. If your house burned down, you wouldn’t expect my house insurance to cover it would you? No, of course not, that’s what you have your own house insurance for. So, how would it be any different in a disaster. Do you think my disaster insurance should cover you in the event of a disaster? No, of course not, that’s what you have your own disaster insurance for.” If they answer with some kind of belligerent remark about coming over anyway, you can always casually mention that you also stock up on large quantities of ammunition. That usually seems to make them think again about what they just said. – Matt, U.P. of Michigan

Letter Re: Survival Biscuits

The history of biscuits started off in Rome around the 3rd Century BC. The word biscuit comes from the Latin bis coctum which means “twice-baked”. Back then, a biscuit was a thin unleavened wafer, quite hard, and with a very low water content – hence the name “twice-baked”. The advantage of the low water content was that the biscuit would have a long shelf-life, because it wouldn’t get moldy. Adding eggs or meat to the biscuit mix increases protein content but it will not last as long. Mixing a complementary proteins (grains with dairy, grains with beans and beans with seeds) will provide a more complete protein and have a longer shelf life. When properly made, they travel well and are satisfying and nutrient dense. – SF in Hawaii

JWR Replies: “Hard tack” biscuits, “ship’s biscuits”, or “pilot bread” have long been a staple for trappers, explorers, sled team mushers, seamen, and mining prospectors. They are a compact food with decent shelf life, and easy to digest. Modern plastic zip lock bag packaging can keep them dry and fresh–eliminating the “soggy, moldy biscuits” problem cited by 19th Century explorers. I like your idea of mixing in beans to form a more complete protein. Pound for pound, there are few foods–aside for some freeze dried marvels–that can compare with a combination of hardtack, jerky, peanut butter, honey, and dried fruit. Just be sure that your digestive system can cope with this diet before trying to subsist on it for more than a couple of days. You might need to add some natural roughage such as bran flakes, or perhaps even a commercial bulk laxative such as Metamucil. Compact backpacking foods make the best foods to store in your “Get Out of Dodge (G.O.O.D.) backpack. Here is a link to a traditional hardtack recipe, but with modern cooking. – SF in Hawaii

Odds ‘n Sods:

Hawaiian K. suggested a link to the article titled: “No Way Out: A 50% Dollar Devaluation“, by Robert McHugh, Ph.D. 

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The big “Container load sale” at Survival Enterprises that I mentioned last week is now in high gear. It is all selling fast and strictly “first come – first served.” The prices are less than half of retail. Survival Enterprises can take all major credit cards, PayPal, cash, gold and silver coins, but no checks or money orders. Survival Enterprises has a web page with a running inventory list with prices. (As they sell out an item, they keep visible track what is left.) All orders must be phoned in for mail order, or by appointment to come in and pick up your order in person. (Survival Enterprises is located in Coeur d’ Alene, Idaho. This is a a great opportunity for SurvivalBlog readers in the Inland Northwest to get their storage food with no shipping charges!.) For special requests, you can call Kurt of Survival Enterprises at (800) 753-1981 or locally at (208) 704-3935 as late as 8 p.m. Pacific time (5 p.m. Eastern time), or e-mail him at: kwATse1.us (Change the “AT” to an @symbol)

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Glenn Reynolds managed to get this published in the op-ed page of the liberally-biased New York Times: A Rifle in Every Pot

Jim’s Quote of the Day:

On The Great Plague of London: “And now, after all the breaches on the churches, the ejection of the ministers, and impenitency under all, wars, and plague, and danger of famine began all at once on us. War with the Hollanders, which yet continueth; and the driest winter, and spring, and summer that ever man alive knew, or our forefathers mention of late ages; so that the grounds were burnt like the highways where the cattle should have fed! The meadow grounds, where I lived, bare but four loads of hay, which before bare forty. The plague hath seized on the most famous and most excellent city of Christendom; and, at this time, eight thousand and near three hundred die of all diseases in a week. It hath scattered and consumed the inhabitants, multitudes being dead and fled. The calamities and cries of the diseased and impoverished are not to be conceived by those that are absent from them! Every man is a terror to his neighbour and himself; for God, for our sins, is a terror to us all. Oh! how is London, the place which God hath honoured with his gospel above all the places of the earth, laid low in horrors, and wasted almost to desolation, by the wrath of God, whom England hath contemned; and a God-hating generation are consumed in their sins, and the righteous are also taken away, as from greater evil yet to come.
‘The number that died in London, besides all the rest of the land, was about a hundred thousand, reckoning the Quakers, and others that were never put in the bills of morality, with those that were in the bills. The richer sort removing out of the city, the greatest blow fell on the poor. At the first, so few of the most religious sort were taken away, that, according to the mode of too many such, they began to be puffed up, and boast of the great difference which God did make; but quickly after, they all fell alike. Yet not many pious ministers were taken away: I remember but three, who were all of my own acquaintance.
‘It is scarce possible for people, that live in a time of health and security, to apprehend the dreadfulness of that pestilence! How fearful people were, thirty or forty, if not a hundred miles from London, of anything that they bought from any mercer’s or draper’s shop! or of any goods that were brought to them! or of any person that came to their houses! How they would shut their doors against their friends! and, if a man passes over the fields, how one would avoid another, as we did in the time of wares; and how every man was a terror to another! Oh, how sinfully unthankful are we for our quiet societies, habitations, and health!’
Many of the ejected ministers seized the opportunity of preaching in the neglected or deserted pulpits, and in the public places of resort, to the terror-stricken inhabitants of London; and blessed results followed. ‘Those heard them one day often, that were sick the next, and quickly died. The face of death did so awaken both the preachers and the hearers, that preachers exceeded themselves in lively, fervent preaching, and the people crowded constantly to hear them; and all was done with such great seriousness, as that, through the blessing of God, abundance were converted from their carelessness, inpenitency, and youthful lusts and vanities; and religion took that hold on the people’s hearts, as could never afterward be loosed.” – Richard Baxter, from Richard Baxter, The Pastor’s Pastor (Baxter was a Reformed pastor in the 17th century, and both a prolific and influential writer.)

Note from JWR:

We now offer a couple of additional payment options for book orders and for 10 Cent Challenge subscriptions: both AlertPay and GearPay. (We prefer AlertPay or GearPay because they don’t share PayPal’s anti-gun political agenda.) In my experience, AlertPay has a frustratingly labyrinthine account set-up procedure, but GearPay seems much quicker and easier to set up.
Our AlertPay address is: rawles@usa.net
Our GearPay address is: rawles@usa.net
Our PayPal address is: rawles@earthlink.net

Letter Re: The Derivatives Bubble

I wanted to say thanks so much for the excellent derivatives article. [“Derivatives–The Mystery Man Who’ll Break the Global Bank at Monte Carlo.”] I speculate in this market and wholly share your opinion about what exists, the ignorance of the implications, and the clear and present danger to the lifestyle of everyone on the planet. Keep up the good work with the blog and with excellent articles such as this. Respectfully, – CMC