“Bodily vigor is good, and vigor of intellect is even better, but far above both is character. It is true, of course, that a genius may, on certain lines, do more than a brave and manly fellow who is not a genius; and so, in sports, vast physical strength may overcome weakness, even though the puny body may have in it the heart of a lion. But, in the long run, in the great battle of life, no brilliancy of intellect, no perfection of bodily development, will count when weighed in the balance against that assemblage of virtues, active and passive, of moral qualities, which we group together under the name of character; and if between any two contestants, even in college sport or in college work, the difference in character on the right side is as great as the difference of intellect or strength the other way, it is the character side that will win.” – Theodore Roosevelt
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Preparedness Notes for Wednesday — March 20, 2019
March 20th is the birthday of Mel Tappan. (Born 1933, died 1980.) His perennially popular survivalist books Survival Guns and Tappan on Survival have a well-deserved following. JWR’s Comment: I propose that March 20th be designated National Survivalism Day. That would be fitting to begin next year, to mark the 40th anniversary of his untimely death. It is also apropos that it falls in March–one of the months that both Northern Europeans and Native Americans refer to as The Starving Season–when stored food runs low, but before spring bounty appears. Plan ahead. Stock up. Don’t starve. I’m sure that Mel Tappan would approve.
—
SurvivalBlog Writing Contest
Today we present another entry for Round 81 of the SurvivalBlog non-fiction writing contest. The nearly $11,000 worth of prizes for this round include:
First Prize:
- A $3000 gift certificate towards a Sol-Ark Solar Generator from Veteran owned Portable Solar LLC. The only EMP Hardened Solar Generator System available to the public.
- A Gunsite Academy Three Day Course Certificate. This can be used for any one, two, or three day course (a $1,095 value),
- A course certificate from onPoint Tactical for the prize winner’s choice of three-day civilian courses, excluding those restricted for military or government teams. Three day onPoint courses normally cost $795,
- DRD Tactical is providing a 5.56 NATO QD Billet upper. These have hammer forged, chrome-lined barrels and a hard case, to go with your own AR lower. It will allow any standard AR-type rifle to have a quick change barrel. This can be assembled in less than one minute without the use of any tools. It also provides a compact carry capability in a hard case or in 3-day pack (an $1,100 value),
- Two cases of Mountain House freeze-dried assorted entrees in #10 cans, courtesy of Ready Made Resources (a $350 value),
- A $250 gift certificate good for any product from Sunflower Ammo,
- American Gunsmithing Institute (AGI) is providing a $300 certificate good towards any of their DVD training courses.
Second Prize:
- A Model 175 Series Solar Generator provided by Quantum Harvest LLC (a $439 value),
- A Glock form factor SIRT laser training pistol and a SIRT AR-15/M4 Laser Training Bolt, courtesy of Next Level Training, which have a combined retail value of $589,
- A Three-Day Deluxe Emergency Kit from Emergency Essentials (a $190 value),
- Two 1,000-foot spools of full mil-spec U.S.-made 750 paracord (in-stock colors only) from www.TOUGHGRID.com (a $240 value).
- An assortment of products along with a one hour consultation on health and wellness from Pruitt’s Tree Resin (a $265 value).
Third Prize:
- A Royal Berkey water filter, courtesy of Directive 21 (a $275 value),
- A large handmade clothes drying rack, a washboard, and a Homesteading for Beginners DVD, all courtesy of The Homestead Store, with a combined value of $206,
- Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy (a $185 retail value),
- Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security, LLC,
- Mayflower Trading is donating a $200 gift certificate for homesteading appliances.
Round 81 ends on March 31st, so get busy writing and e-mail us your entry. Remember that there is a 1,500-word minimum, and that articles on practical “how to” skills for survival have an advantage in the judging.
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Strangers in a Strange Land: Communication, Pt. 2, by L.C.
(Continued from Part 1. This concludes the article.)
GET TO KNOW YOUR NEIGHBORS. HUMBLE YOURSELF.
We took Danish lessons. It is a very difficult language that has 6 extra vowels that I can’t even hear the differences. After living on our small street for several months, we received an official-looking post card. Using our Danish-to-English dictionary made no sense of the phrases on the card. We had met our neighbors but had not developed friendships. We had learned that all Danes are taught English from 3rd grade onward. If we spoke Danish, they would answer in English. So I humbly walked over to the neighbor and knocked on the door, asked what the card meant. The neighbors were great, explaining that the post office wanted us to shovel snow off our driveway so they could deliver the mail, but don’t worry they said, the temperatures would be in the 50s tomorrow and the snow would melt. Smiles all around.
Then we received three letters from the health department. I had surmised that it was about me getting a pap smear and since our annual health care concerns were taken care of when we traveled back to Ohio yearly, I threw out the first two letters. The third letter was in bold and red type! Did the Danes have a gynecological police? So off to the neighbors again. This time a different neighbor. I humbly knocked on the door, and she (thankfully a female) answered and I showed her the letter and asked questions. She assured me I was fine as I went to the USA for yearly exams.
Continue reading“Strangers in a Strange Land: Communication, Pt. 2, by L.C.”
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JWR’s Recommendations of the Week:
Here are JWR’s Recommendations of the Week for various media and tools of interest to SurvivalBlog readers. This week the focus is on Thermo-Electric Generators (TEGs). (See the Gear & Grub section.)
Books:
The Home Edit: A Guide to Organizing and Realizing Your House Goals (Includes Refrigerator Labels)
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The Elements of Style, Fourth Edition
Movies:
The Battle of Britain. This now-classic war film was released in 1969. The stunt flying and special effects are all genuine “old school”. The acting is first rate. Available on Bu-Ray, DVD, or for free streaming to those with Amazon Prime.
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Shortest Way Home: C.S. Lewis & Mere Christianity. Available on Bu-Ray, DVD, or for free streaming to those with Amazon Prime
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Economics & Investing For Preppers
Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today’s focus is on western societies going cashless.
Precious Metals:
Palladium soars to record, gold moves back up above $1,300/oz
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Brace For “Slingshot” Rally; Best Days For Silver Are Yet To Come – CEO
Economy & Finance:
Formerly Red-Hot Retail Sales Fizzle Back to Normal
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At Wolf Richter’s Wolf Street: E-Commerce is Wiping Out Mall Retailers One by One. Here’s the Data
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Also from Wolf Richter: The Most Splendid Housing Bubbles in Canada Deflate
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The Editors’ Quote of the Day:
“One of the first things they teach stockbrokers is to stay out of the stock market. Brokers make their pile from selling advice, and from commissions on stock transactions. They can’t predict the market, and few risk their own money. They, at least, only affect their clients’ fortunes. Economists, though, can ruin the lot of us with their advice — yet if no science can predict a relatively closed system like the stock market, how the devil are you going to ‘fine tune’ something a large as the American economy? I’d think it arrogant to try; as arrogant as the man with three illiterate drug-addicted spoiled brats writing a book on parenting.” – Jerry Pournelle, “The Voodoo Sciences”, 1988
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Preparedness Notes for Tuesday — March 19, 2019
On March 19, 1649, the House of Commons of England passed an act abolishing the House of Lords, declaring it “useless and dangerous to the people of England”. Perhaps it’s time Americans did the same with our Senate–or better yet return our Senate to its proper role of representing the individual States rather than electing Senators by popular vote.
—
SurvivalBlog Writing Contest
Today we present another entry for Round 81 of the SurvivalBlog non-fiction writing contest. The nearly $11,000 worth of prizes for this round include:
First Prize:
- A $3000 gift certificate towards a Sol-Ark Solar Generator from Veteran owned Portable Solar LLC. The only EMP Hardened Solar Generator System available to the public.
- A Gunsite Academy Three Day Course Certificate. This can be used for any one, two, or three day course (a $1,095 value),
- A course certificate from onPoint Tactical for the prize winner’s choice of three-day civilian courses, excluding those restricted for military or government teams. Three day onPoint courses normally cost $795,
- DRD Tactical is providing a 5.56 NATO QD Billet upper. These have hammer forged, chrome-lined barrels and a hard case, to go with your own AR lower. It will allow any standard AR-type rifle to have a quick change barrel. This can be assembled in less than one minute without the use of any tools. It also provides a compact carry capability in a hard case or in 3-day pack (an $1,100 value),
- Two cases of Mountain House freeze-dried assorted entrees in #10 cans, courtesy of Ready Made Resources (a $350 value),
- A $250 gift certificate good for any product from Sunflower Ammo,
- American Gunsmithing Institute (AGI) is providing a $300 certificate good towards any of their DVD training courses.
Second Prize:
- A Model 175 Series Solar Generator provided by Quantum Harvest LLC (a $439 value),
- A Glock form factor SIRT laser training pistol and a SIRT AR-15/M4 Laser Training Bolt, courtesy of Next Level Training, which have a combined retail value of $589,
- A Three-Day Deluxe Emergency Kit from Emergency Essentials (a $190 value),
- Two 1,000-foot spools of full mil-spec U.S.-made 750 paracord (in-stock colors only) from www.TOUGHGRID.com (a $240 value).
- An assortment of products along with a one hour consultation on health and wellness from Pruitt’s Tree Resin (a $265 value).
Third Prize:
- A Royal Berkey water filter, courtesy of Directive 21 (a $275 value),
- A large handmade clothes drying rack, a washboard, and a Homesteading for Beginners DVD, all courtesy of The Homestead Store, with a combined value of $206,
- Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy (a $185 retail value),
- Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security, LLC,
- Mayflower Trading is donating a $200 gift certificate for homesteading appliances.
Round 81 ends on March 28th, so get busy writing and e-mail us your entry. Remember that there is a 1,500-word minimum, and that articles on practical “how to” skills for survival have an advantage in the judging.
—
JWR Adds: I hope that SurvivalBlog readers do not dismiss the following article as just a collection of slightly-dated reminiscences. This has great applicability to preppers, moving to retreat areas here in the United States. Whether you are moving from North to South, or from Urban to Rural, or simply from farming country to ranching country, there will always be at least a little culture shock. As the author stated, humility is the key. Be humble, Don’t try to change things in your new community. You need to adapt to your neighbors and their customs. Not vice versa!
Strangers in a Strange Land: Communication, Pt. 1, by L.C.
HOW TO MEET PEOPLE/MAKE FRIENDS IN A NEW AND FOREIGN AREA
After growing up on small farms in Ohio, my husband and I were given the opportunity to live in Denmark for his work. Looking back, that was total culture shock to both of us. Also looking at it now in hindsight, I’ve compiled a plethora of hints with anecdotes, to illustrate.
HOPEFULLY, THESE HINTS CAN APPLY TO ALL PEOPLE MOVING INTO A NEW HOME, OR TO A BUG OUT LOCATION.
To make this meaningful, perhaps a little more background is necessary. As I mentioned, my husband and I each grew on farms in Ohio, went to church and high school together. After he was drafted into the Army near the end of the Viet Nam War, and I went to college, becoming an art teacher. We were reacquainted, married and bought my father’s farm. I taught at the same school where we graduated and my husband was a deputy sheriff for the county.
Let’s fast forward a bit: at my 25th school reunion, I received the bottle of wine for ”the classmate who hadn’t gone anywhere”, although we had vacationed all over the States and went to Japan and Korea to visit my husband’s brother, who was a missionary there. Next, my husband accepted a job opportunity with a water softener company, starting at the lowest entry level but rapidly worked his way up to head of manufacturing with 250 people under his supervision.
Then, in January, 2001, I was at school. I received an e-mail from my husband asking, “Would you like to have your favorite Danish pastry fresh each morning, and can you get a leave of absence?” A great discussion commenced and months later we were on the first flight available after September 11.
We arrived on a Thursday. The company provided a wonderful thatched roofed home in a small town right on the Baltic Sea. Perfect! My husband would leave for work and I had to ‘set up house’. I had a bicycle, didn’t speak Danish, and had no idea where even the grocery store was located.
HINT #1. FIND A CHURCH.
We researched and found an English speaking church which we attended that first Sunday. We accidentally sat next to the minister’s wife, and after introductions, she asked if I’d like to attend the American Women’s Club meeting on Tuesday, where quest speakers would teach us how to shop. OH YEAH!! I will mention that my husband thought it was a hoot that someone was going to teach me how to shop. I learned so very much: stores are open 10 till 5 weekdays, 10 till 2 on one Saturday a month, and no Sundays. They also close the registers early so that they can lock up at 5.
HINT #2: REALIZE THAT YOU ARE A VISITOR, AN ALIEN, IN THEIR COUNTRY. I was actually told at 4:30 one day, “You don’t have enough time to shop here.” Another time, I arrived early and was told, ”Woman, go home and prepare your day.” (I had been up cleaning since sunrise at 3:30 am.) I held my tongue, turned my bike around and left. I also learned to know the location of the deliveries made at the store, as dairy deliveries were made at 6am and employees would not open the store and take them in until 9:30, so the milk might be sitting in the bright sun and heat for that time.
HINT #3: REALIZE THINGS WILL BE DIFFERENT, REALLY DIFFERENT. You are not in Kansas anymore…Of course the money, the language are different but also:
The numbers on the phone will be in a different order. The plastic numbers fell off the phone one day and I realized I couldn’t put them back on in the correct Danish placement until I saw a Danish phone, so I couldn’t call anyone, not even my husband.
The way to answer the phone will be different: Don’t say hello, say your name.
The mail delivery will be different: you must have ALL the names of everyone in the home on the outside of your door.
The electricity will be different: 220 not 110. Be careful with your curling iron on your front curls as they will singe, turn orange, and come off immediately.
You will bag your own groceries. When the advertisement states 5 bananas for a price, make sure there are 5 bananas, rip off the extra one or two, don’t confuse the checkout girl. And yes, you can buy one beer, or 6 cigarettes.
TV will be different: full frontal nudity, both sexes, all the time. The commercials will be hilarious as you don’t understand what they are advertising.
The household cleansers will be different: the little bear on the bottle does not mean it is laundry softener. I interchanged laundry soap and softener for a year.
HINT #4: DON’T LOOK BACK, DON’T BE LOTS WIFE. LOOK FORWARD. After several months, it was our first Christmas in Denmark. Of course, we wanted to go home for Christmas, but tax ramifications vetoed this. (We had to be out of the States for over 183 days straight before coming back or would face high US and Danish taxes.) So we went to Rome for 2 weeks and had our college age son and his fiancé join us. A delightful, memorable time. Another time we went to Israel for Christmas with our other son. Look forward- make memories.
It is not only hard on you but also on family and friends back home. Our first Christmas, we sent Christmas cards home to all family and friends. One card we received back, I remember, had a short note, “Well you might as well have died, as far as you moved away. Love, Aunt ___.
HINT #5: ADJUST. LEARN THE CUSTOMS, SPOKEN AND UNSPOKEN AS FAST AS POSSIBLE. Many times, early in our stay, I felt rejected. (It didn’t help that one of the main workers under my husband wanted his position, didn’t want us there, and capitulated on ‘if momma ain’t happy then no one is happy” and strived to make me unhappy, even to the extent of telling me, “No loud brash American woman is welcome on a golf course or anywhere here in Denmark.”
But I also felt elated in being here in beautiful, wonderful Denmark!
Our Danish teacher helped sort out the customs from the idiosyncrasies of the people. She introduced us to Jante Law, the code of conduct for Nordic countries. I have copied it here:
THE LAW OF JANTE
- YOU’RE NOT TO THINK YOU ARE ANYTHING SPECIAL.
- YOU’RE NOT TO THINK YOU ARE AS GOOD AS US.
- YOU’RE NOT TO THINK YOU ARE SMARTER THAN US.
- YOU’RE NOT TO CONVINCE YOURSELF THAT YOU ARE BETTER THAN US.
- YOU’RE NOT TO THINK YOU KNOW MORE THAN US.
- YOU’RE NOT TO THINK YOU ARE MORE IMPORTANT THAN US.
- YOU’RE NOT TO THINK YOU ARE GOOD AT ANYTHING.
- YOU’RE NOT TO LAUGH AT US.
- YOU’RE NOT TO THINK ANYONE CARES ABOUT YOU.
- YOU’RE NOT TO THINK YOU CAN TEACH US ANYTHING.
The YOU in Jante Law is the newcomer, the outsider. This code of conduct shows up at the weirdest times. My husband realized this very early at work. The business supplied cars to all workers, (another difference). They showed him the car choices already available at the business and even took him (us) to look at new cars. He didn’t take the bait, he took the oldest car the company. Needless to say, “Don’t act better, don’t act like your way is better.
HINT #6: JOIN LOCAL ORGANIZATIONS. I joined the American Women’s Club, and the International Women’s Club. My husband joined the American Chamber of Commerce. We attended meetings, dances, garden parties, fireworks, etc, just to meet and talk to Americans and Danes. I became the head of the activities committee and organized an evening of curling for members and their husbands with instructions and equipment at the curling venue. Lots of fun and the only way to understand that sport. We also attended the youth soccer games of our neighbor’s son.
We learned to play ‘kubb’, (KUUB), with our Danish, Swedish, American friends. Kubb is an outdoor, yard game with similarities to bowling, darts, chess and throwing small pieces of lumber at your opponent. Look it up on the internet, we brought it back and play it at family reunions. It is lots of fun!
HINT #7: DON’T TAKE OFFENSE EASILY AT THEIR ACTIONS. Denmark and any place can be very tribal, and closed to strangers. As in many places, if you hadn’t been born there, grown up there, grandparents hadn’t lived there, then you were a newbie, an outsider, and would always be a stranger. Examples of how closed Denmark is: I was sweeping our cobblestone driveway when a car drove by on our cul de sac. Thinking it was probably a neighbor, I waved. The woman in the passenger seat turned away from me with a scowl on her face. (According to Danish Culture, she didn’t know me and I had invaded her space.)
Or: While walking down the street, I would sometimes nod and/or smile at people walking toward me. The women mostly and sometimes the men would scowl and turn their heads away. But there are ways to break the barriers.
(To be concluded tomorrow, in Part 2.)
SurvivalBlog’s News From The American Redoubt
Here is SurvivalBlog’s News From The American Redoubt. This weekly column features news stories and event announcements from around the American Redoubt region. We also mention companies of interest to preppers that are located in the region. The emphasis this week is on whole house backup generator companies in the Redoubt.
Region-Wide
Four of the largest whole house backup generator companies are Generac, Kohler, Cummins, and Honeywell. They have authorized dealers/installers, nationwide.
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Two important points: Make sure that the generator you buy can also operate your well pump, if you are on well water. Most well pumps operate on 220 VAC, while most home backup generators produce only 120 VAC. Only a few produce both 120 and 220 volts. Most home well pumps require at least a 5,000 watt generator. I strongly recommend propane-fueled generators, especially in northern states–where diesel has gelling problems, in winter. At the same time that you buy your generator, you should buy the largest propane tank(s) that you can afford.
Idaho
Same Day Electric in Boise is a well-known Kohler dealer. They have clients in Boise, Meridian, Eagle, and Nampa.
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In north Idaho, ACI Northwest in Coeur d’Alene is one of the largest Generac dealers.
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That big Amazon distribution center planned in Nampa? It won’t be built for awhile
Continue reading“SurvivalBlog’s News From The American Redoubt”
The Survivalist’s Odds ‘n Sods:
SurvivalBlog presents another edition of The Survivalist’s Odds ‘n Sods— a collection of news bits and pieces that are relevant to the modern survivalist and prepper from “JWR”. Today, we focus on digital home invasion–sadly by both hackers and by our own NSA.
Parliament’s Brexit Betrayal
D.S. sent us a link to the latest from commentator Mark Steyn (who you might have heard filling in for Rush Limbaugh): Exit Brexit. D.S. included a brief excerpt:
“Last night, sixteen days before Britain supposedly leaves the European Union in accord with the people’s vote of three years ago, their elected representatives voted by 312 to 308 to rule out a “no-deal” Brexit – i.e., a straightforward walkaway – ever.”
Perrenials for Prepping
DSV flagged this one: How to Plant a Perennial Food Garden – 20 Fruits & Veggies That Will Keep Coming Back Year After Year.
SPLC Sacks Its Own Founder
Several readers sent us this news: Southern Poverty Law Center Fires Founder Morris Dees, Suggests Misconduct. Since I might eventually be part of a class action lawsuit against the SPLC, and since I certainly don’t want to get sued by the SPLC, I will refrain from commenting on this article.
Continue reading“The Survivalist’s Odds ‘n Sods:”
The Editors’ Quote of the Day:
“Before, my managers knew never to mention a TV series to me, because they knew how furious that would make me. I’d look at it like a vote of no confidence in my movie career, that I was going to be sent off to the television graveyard. But at a certain point I looked at the stuff I was consuming — The Sopranos, The Wire — and I realized the writers went to TV because they’d been screwed by the movies. It was still a difficult moment for me. I mean, my hand was shaking. Then they sent me three scripts, and they were three of the best scripts I’d seen in years. I was like, ‘Schmuck, you could’ve jumped on this years ago!'” – Kevin Bacon
Preparedness Notes for Monday — March 18, 2019
Today of the birthday of Luc Besson, director and producer of films such as Nikita and The Fifth Element. He was born in 1959.
March 18th is also the birthday of novelist John Updike. (He was born in 1932 and died in 2009.)
Glock 17 RTF 9mm Handgun, by Pat Cascio
Many readers have asked me to review the Glock 17, even though I’ve already reviewed the Glock 19 – which is my favorite Glock model. Other than their size, there isn’t a lot of difference between the two models per se. However, since I received a lot of requests for my input on the Glock 17, we’re taking a close look at it today.
It was 1987, and my family and I lived in Colorado Springs, Colorado – actually we lived slightly outside of The Springs, right next to the Peterson Air Force Base. Even though I was in partnership with my friend Tim, in a gun shop – although most guns were sold at gun shows – I loved going to Payless Drugs to see what the latest firearms selections they had. And, I might add, at great prices. I had never heard of a Glock at that time – they were new to America. I picked up the new Glock 17, and was more than a little confounded at the “plastic” frame – but the darn gun felt good in my hand, and it held 17+1 rounds of 9mm and came with a second magazine. Back then, not many gun makers included a second magazine with their handguns. I was sold, and went home with the Glock that very day.
Recipe of the Week: Lo Carb Green Chile Cheese and Egg Bake Set
Okie Ranch Wife’s Lo Carb Green Chile Cheese and Egg Bake
I found the original recipe on an Atkins Diet-friendly web site and changed it up to suit my taste. It is a great way to use eggs from your chickens and other garden produce. I would not suggest doubling this recipe in a larger dish, due to the increased cooking time. I suggest baking it in two 8″x8″ dishes. – OkieRanchWife
Ingredients
4 oz can of Green Chile Peppers or equivalent weight of fresh chiles
8 large Eggs
½ Sweet Red Pepper, small dice
2 Tbsp Heavy Cream
1 Tsp Garlic Powder or 2 cloves Garlic minced
1 Tsp Onion Powder
½ Tsp Salt
½ Tsp Black Pepper
1-½ cups (or more) grated Cheese, your choice
Continue reading“Recipe of the Week: Lo Carb Green Chile Cheese and Egg Bake Set”
Economics & Investing For Preppers
Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today’s focus is on Rhodium (See the Precious Metals section.)
Precious Metals (Rhodium):
I see that the spot price Rhodium just touched $3,000 per Troy ounce late last week. You may recall that I issued a buy recommendation for Rhodium back in 2016, when it was languishing around $670 per ounce. I hope that some of you readers took my advice. If you did, then you’re now sitting pretty. The future for Rhodium’s price is uncertain. But I’ll reiterate one key point: Most of the world’s Rhodium comes from just two places: Russia and South Africa. Watch geopolitical, military, and economic events closely. And, as always: Buy low and sell high.
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Michael Pento interviewed by Mike Gleason: Coming QE And Low Rates Will Be ‘Rocket Fuel for Gold’. Here is a key quote:
“So, here’s where what’s going on and we are at a record high position for gold in the inflation-deflation and economic cycle model that I run here at Pento Port. So, why is that, okay? Why is that the case? So we were a 5% goal when it was crashing in 2016 and 17 but we are now at 22% gold and gold related investments. So, why is that the case? Because nominal interest rates, there’s been a proclamation from central bankers that nominal interest rates can never go above zero. You look at the negative rates now in Japan, the German boom has a yield going out 10 years now of 0.7%. So, interest rates can never be allowed to rise. If you look at our 10-year note is now, at least in the terms of yields, is in a bear market. So, a bull market and bond prices in a bear market in that yield.
And when you come to the realization that nominal rates can never really get much above zero, that’s a rocket fuel for gold. Because gold loves are interest rates that are close to zero and falling because it doesn’t produce any income, it “just” preserves your purchasing power. I say just in quotations, “just” is pretty important. Now because its central banks are also going to have to resort to a return to Quantitative Easing. I believe that the ECB is moving in that direction. They also extended the TLTLRO, which is a Targeted Long-Term Refinancing Operation. Basically just to spell it out for your audience, it’s basically when the central bank makes loans to commercial banks and commercial banks don’t have to pay back the central bank, if they make that loan to the private sector.”