Recipe of the Week: Glazed Corn Beef, by J.T.

Ingredients:

  • 3½ to 4 lbs corned beef
  • Water
  • 2 Tbsp prepared mustard
  • 1½ tsp horseradish
  • 2 Tbsp red wine vinegar
  • ¼ cup molasses

Directions:

  1. In a pot, cover corned beef with water.
  2. Cover and cook on low for 6 hours (making sure the water always covers the meat; add more water if necessary).
  3. Drain the cooked corned beef and place on a broiler pan or oven proof platter.
  4. Combine mustard, horseradish, wine vinegar, and molasses.
  5. Brush sauce on all sides of meat.
  6. Brown in 400° oven for about 20 minutes or until it begins to brown; brush with sauce several times while browning.

Makes 6 to 8 servings.

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Do you have a favorite recipe that would be of interest to SurvivalBlog readers? Please send it via e-mail. Thanks!

Letter Re: Purchasing Power

HJL:
That was a great article series. I personally work to create things with my knowledge, skill, and labor that will ride with inflation. Since I do it myself, my labor goes into the thing that rides with inflation without being taxed. I’ll also note that insurance companies watch very carefully what they will have to pay to fix your car or your house and adjust rates accordingly. My income is a percentage of that premium. My income is therefore indexed. The other side of the coin is that when business activity drops by half, like it did in contracting in 2008, premiums drop by half and I have to give back compensation long since spent. Oh the joy! Any merchant type activity gets you indexed income with vigilance.
No plan is foolproof. So there is no perfect solution, but you have to figure out how to index and lawfully avoid the taxes. JWR’s Tools for Survival figures into this. When I build a project, probably 70% of the hardware comes from current inventory. I grimace when I replace the used items, as the prices have risen, but it represents a hedge. Also, in acquiring the tools, you are schooled to learn how to use them. Up goes the value of your property as you practice. Down goes the cost to live, assuming your project made it less expensive or more convenient at your property. Likewise, my stored fuel keeps me from anxiety along with having to run down to the gas station and pay any price when there is a fire in Alabama disabling the pipeline that serves Atlanta. For the record, I did go top off but only after judging that the price was reasonable. Up goes your confidence when you embrace the capabilities you command that are so essential to navigating this very difficult world. – RV

Odds ‘n Sods:

Here is an oddity: Dr. David Powers, a USMC veteran, has compiled and published a collection of nonfiction extracts from my first novel, Patriots. He never asked for my input, so he misconstrued a couple of items. But overall, it seems to be the product of a man with an exacting mind. – JWR

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Here is another video with some ideas that are applicable to Bug Out vehicles: Vanlife with no filter: couple records work/life on wheels

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An interesting interview with an American serving alongside the Kurds: Interview With an American Peshmerga – W.C.

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Several readers have written in to remind us that the election isn’t actually over yet. The Electoral Votes still have to be cast, on December 19th. History shows that Electoral Vote defections, while rare, do happen. However, never in the history of the United States has there been a mass defection resulting in a different president. – HJL

Jim’s Quote of the Day:

“Hillary Clinton did not hit a glass ceiling, she hit a ‘lead’ ceiling. America’s gun owners turned out to vote and made the Second Amendment great again.” – Second Amendment Foundation founder Alan Gottlieb

Notes for Sunday – November 13, 2016

Continental Army Brigadier General Richard Montgomery took Montreal, Canada without opposition on this day in 1775.

Robert Louis Stevenson, author of Treasure Island, Kidnapped, and Doctor Jekyll and Mr. Hyde, was also born in Scotland on November 13th, 1850.

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Please continue to pray for President-Elect Trump and his transition team. There is now growing concern that he is “modifying” his positions and “seeking common ground”. Most troubling is that he is now planning on keeping Obamacare (and just “fixing” it), and that he has backed away from his stated goal of eliminating the EPA. Please pray that Mr. Trump keeps his campaign promises for LESS government! – JWR

The Drama is Not Over: It is Still Time to Pray and Take Action, by Sarah Latimer

Well, it has been an eventful month since I last wrote on SurvivalBlog. I decided to take my own advice and enjoy some of those Golden Moments of Silence, where I simply soaked in special moments, beauty, God’s Word, made memories with those I love, and deposited these inspirations in my soul. Since I last sat in front of my keyboard to address you, I have enjoyed fellowship with numerous friends and family, seen some spectacular sights, and experienced dramatic events, most of which were wonderful and beyond description. I have made some new “survivalist” friends and gained greater respect from some serious homesteaders who are venturing into new (and rather ancient) methods of doing things. It has been an amazing month, for the most part. However, there were some very serious moments that reminded me of the sinful world in which we live and were far from “golden”.

One cannot travel or talk with many people without being subjected to or hearing firsthand accounts of serious, violent crimes. This was my experience as well. I am thankful that all of my loved ones are safe and sound, but I was reminded what a very dangerous world we live in. I am thankful that we have the means to protect ourselves and law enforcement to lock away (at least for a time) violent offenders. I am thankful for Second Amendment rights, and I am even more thankful for God’s watchful hand and His Spirit to guide us when danger lurks.

Throughout the month’s festivities, part of me wondered if this was the last “hooray” before we began adjusting in an escalated departure of our American liberties and freedoms. I was trying to emotionally prepare for the possible consequences of having to live through the next four years under Hillary Rodham Clinton as President of the United States. Thankfully, we will not know what those four years would have brought to us. She promised gun control, womens’ right to kill their children up to the point of birth, punitive consequences for anyone who did not embrace and facilitate all sexual behavior, and so much more. She was no friend of our ally, Israel, but was a close friend of its sworn enemies. I am tired of hearing about Hillary. I am tired of the election, but the issues discussed during this campaign are far from resolved by the election and remain of great concern to all of us.

Our nation’s security, economy, employment, healthcare system, as well as international conflicts and our ability to diplomatically or militarily deal with these are among the more serious issues at hand. Individual liberty and property right issues are out of control. Church, synagogue, and religious non-profit organizations’ ability to operate and function separate from state control and scrutiny is being threatened. Of course, gun control laws are a problem that need to be resolved and many retracted, because the Second Amendment provides for the enforcement of all rights and liberties of the people against tyranny or a government that would threaten our basic rights and liberties. This is certainly not a comprehensive list of issues that need addressing; however, it is enough to remind us of the enormous burden being placed upon President-elect Trump and his executive staff as well as Congress.

The election is over, and I have stopped praying over the selection of the man/woman that is God’s will to lead our nation, state, district, and so forth in these various elections. It is easy to now think that any one of us can make no difference and that it is all on Trump’s shoulders and those in various lower offices to make the lives of Americans better (or worse). I am here to tell you, it is not up to Trump or anyone in political office! The majority of the choice rests with you and me! It’s not out of our hands.

What can you and I do? There are two extremely important things:

The first and most important one is to pray and listen to the God of Abraham, Isaac, and Jacob, recognizing that He is our ultimate ruler and has authority over all nations and people. He not only knows that past and present, He knows the future. He allows mankind to have choices, but He also has a plan that He will see accomplished.

“Therefore thou shalt love the Lord thy God, and keep his charge, and his statutes, and his judgments, and his commandments, alway. And know ye this day: for I speak not with your children which have not known, and which have not seen the chastisement of the Lord your God, his greatness, his mighty hand, and his stretched out arm, and his miracles, and his acts, which he did in the midst of Egypt unto Pharaoh the king of Egypt, and unto all his land; “ – Deut. 11:1-3

The Lord of hosts hath sworn, saying, Surely as I have thought, so shall it come to pass; and as I have purposed, so shall it stand:” Is. 14:24

He is our ultimate provider. It is in Him that we can choose to have an eternal citizenship through His Son, Jesus. While you and I cannot sign a bill or meet with a nation’s leader, we have connection with the eternal Sovereign and, through Him, we have authority, for no ruler has any authority and no man can do anything outside the permissive authority of God.

“Let every soul be subject unto the higher powers. For there is no power but of God: the powers that be are ordained of God.” Romans 13:1.

We need to be in tune with God’s Spirit to heed His voice when He gives us instruction for how to care for ourselves, our families, our communities, and/or our nation. We need to pray with prayers of petition on behalf of our nation and others, but we also need to pray prayers where we listen and ask for instruction and guidance. We need to pray His Word and take time to be still and listen. He speaks to those who draw near, and He gives instruction. This is evident all through the Bible. When in the spiritual (not yet physical) presence of the Most High God, to whom I have repented and strive to walk holy, I cannot help but find perfect peace, regardless of the chaotic world around me.

“Thou wilt keep him in perfect peace, whose mind is stayed on thee: because he trusteth in thee.” Is 26:3

The second thing you and I can do is to live right and take care of our business of living and preparation with integrity and honesty, compassion, and awareness, according to God’s instructions in His Word. He has given us excellent guidance in how to conduct ourselves and warns us to guard against and stay clear of the enemies of our mind, body, and soul. I want to emphasize the guarding against things of the mind and soul, because as believers we are not merely wrestling against things of a physical nature, though those are serious matters, of course.

Apathy toward God’s Word is an epidemic, in my opinion. The apostle Paul very plainly warns us of the danger of spiritual wickedness in Ephesians 6. It is not appropriate to blame Satan either. He has no power to force his will on someone who belongs to God. I despise that phrase “the devil made me do it.” We choose righteousness or evil, and we are blessed with or suffer the consequences. Yes, there are temptations put in front of us, but we have to make the choice. I’ve made plenty of mistakes myself, and the consequences I’ve suffered are of my own doing. I am thankful for a loving God who disciplines His children to teach them. I have learned and grown because of His discipline and am thankful for those lessons. I’m sure my life would have been much harder had I not learned those lessons. Here’s what Paul writes:

“Children, obey your parents in the Lord: for this is right. Honour thy father and mother; (which is the first commandment with promise;) that it may be well with thee, and thou mayest live long on the earth. And, ye fathers, provoke not your children to wrath: but bring them up in the nurture and admonition of the Lord.

Servants, be obedient to them that are your masters according to the flesh, with fear and trembling, in singleness of your heart, as unto Christ; not with eyeservice, as menpleasers; but as the servants of Christ, doing the will of God from the heart; with good will doing service, as to the Lord, and not to men: knowing that whatsoever good thing any man doeth, the same shall he receive of the Lord, whether he be bond or free. And, ye masters, do the same things unto them, forbearing threatening: knowing that your Master also is in heaven; neither is there respect of persons with him.

Finally, my brethren, be strong in the Lord, and in the power of his might. Put on the whole armour of God, that ye may be able to stand against the wiles of the devil. For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places. Wherefore take unto you the whole armour of God, that ye may be able to withstand in the evil day, and having done all, to stand. Stand therefore, having your loins girt about with truth, and having on the breastplate of righteousness; and your feet shod with the preparation of the gospel of peace; above all, taking the shield of faith, wherewith ye shall be able to quench all the fiery darts of the wicked. And take the helmet of salvation, and the sword of the Spirit, which is the word of God: praying always with all prayer and supplication in the Spirit, and watching thereunto with all perseverance and supplication for all saints” Ephesians 6:1-18

As we continue in faith, peace, love, and joy to go about life, we are a bright light that shines and reflects the strength of God and brings honor to Him in this dark world. Have hope but don’t let your hope be in President-elect Donald Trump or any man (or woman). Let your hope be in God. Then, you will not be disappointed!

I recently read a book, America’s Controversy with God’s Covenant that walks readers through the history of our nation and how it has been under a covenant of blessing with God, though this is changing. The authors– Perry Stone and Bill Cloud– wrote:

“First of all, we must acknowledge that time and space preclude us from listing and quoting even a small fraction of the material available which supports the argument that this nation was founded, settled and developed by people who believed in, prayed to and strove to faithfully serve the God of Israel. Consider that when over 15,000 quotes obtained from various papers, articles and books attributed to the Framers and Founders were evaluated, the results showed that 35% of these quotes were taken directly from or inspired by the Bible.”

“If they (the early colonists, such as William Bradford of Plymouth Plantation) perceived their efforts in Massachusetts to be part of a larger plan designed by the Great Architect, they also understood that success would require that their energies be spent on spiritual objectives so much, if not more so, as on building fences, homes and roads. If we may phrase it this way: they committed themselves to live according to the essential elements of the covenant demonstrated in the Scripture, ratified by the blood of Messiah– ‘Love the LORD your God with all your heart’ and ‘Love your neighbor as yourself.’ This would bring them prosperity.”

I want to encourage you, today, to walk with integrity, according to God’s Word and ways, which are consistent. Our God is not inconsistent. He does not have a Plan B or Plan C. He does not condone immorality. He blesses those who honor Him. Our nation has been blessed for centuries. We are teetering on the brink of destruction. Prayer, I believe, is not enough to save it. We must change our ways.

I do not know how well President-elect Trump will do to hold America together, confront our enemies, and face these many other challenges. However, I want to encourage all of us, especially my sisters in the LORD, to not be weak or fearful. We must keep our eyes on the LORD, for He is our strength, our redeemer, and our shield. Let us honor Him in all we do and say. Let us be part of keeping the blessing, if not for our nation then for our family and for ourselves.

May you find some “golden moments” of inspiration to deposit in your soul for the days ahead, and may God bless you!

Letter Re: Older Swiss Franc Note Invalidations

HJL,

Having experienced some disappointments with foreign currencies both in minor personal matters and in business (as well as some successes). Repeated mention of the Swiss Franc here on SurvivalBlog piqued my interest. When I first became involved in currency, I took a look through the souvenirs my family brought back over the years. I was happy to see a 10 SFr note there. My presumption was that surely this must be something! Disappointment followed shortly thereafter, when it turned out to be nothing more than a piece of colored paper by that time.

There is one fact regarding the Franc that may be worth drawing attention to that I have not found mention of on the site. Periodically, the Swiss National Bank invalidates a previous series of currency. As of 2016, they are in the process of issuing a new (9th) series of bank notes. When that is complete, one should expect the possibility that they will withdraw the previous (8th) series. If one reviews the Swiss National Bank website’s page on banknotes one can note the following:

  • 9th Series: in process of being issued in 2016
  • 8th Series: remains legal tender until further notice
  • 7th Series: never issued
  • 6th Series: recalled in 2000, may be exchanged at the Swiss National Bank until 2020 after which they have no value
  • 5th to 1st Series are all withdrawn and have no legal tender status

Anyone holding Swiss Franc notes would first want to attend to any 6th series they have as soon as possible, then consider the 8th series. If previous patterns are repeated, then one would want to be prepared to exchange notes. Questions to be asked are:

  1. How long do you visualize holding them?
  2. Would banks and currency exchanges that deal in foreign currency accept 8th or 6th series in exchange for dollars?
  3. Would banks and currency exchanges that deal in foreign currency be willing to do a trade for new notes?
  4. Would there be a fee?
  5. Can any of them answer that question now and guarantee what they might promise?
  6. Do you want to count on what they say?
  7. Will you have the opportunity to carry them to Switzerland yourself (considering both limits on export of currency and safety)?

My old 10 SFr note was from the 5th series and still makes me feel the loss whenever I look at it (not often). In these matters, time can creep up on one too easily and leave one with pretty paper you may never want to look at! – Rob

Economics and Investing:

Three lessons from safari in Zimbabwe (Note: contains a sales pitch but good info anyway.)

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Gold Price Skyrockets In India After Currency Ban – RBS

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Abolishing Large Currency. Government of India has recalled all large denomination bills and are using it for a tool to collect information on its citizens and go after them for tax evasion. – B.R.

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Is The Silver Price Even A Better Bargain Than Gold’s?

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SurvivalBlog and its editors are not paid investment counselors or advisers. Please see our Provisos page for details.

Odds ‘n Sods:

I just noticed that Montie Gear has a new gadget for those fall hunters that is pretty awesome when you’re in a tree stand: The Hunter’s Friend. – HJL

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Database of undocumented New Yorkers could be deleted – DSV

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A man with a foreign passport (Pakistan) was caught trespassing at a water plant in Chicago, then he was released on his own recognizance, then he failed to show up in court, and disappeared. – D.S.

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Judge Orders Deliveries of Bottled Water to Flint, Michigan residents (May require a login or subscription to access)

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Texas Community Goes Underground For Doomsday Prep – A ritzy place for sure, but we are wondering what their plan for maintenance is. – H.L.

Hugh’s Quote of the Day:

“What shall we say then that Abraham our father, as pertaining to the flesh, hath found? For if Abraham were justified by works, he hath whereof to glory; but not before God. For what saith the scripture? Abraham believed God, and it was counted unto him for righteousness.” – Romans 4:1-3 (KJV)

Notes for Saturday – November 12, 2016

Today is the birthday of USMC Sergeant Major Daniel Joseph “Dan” Daly (born 1873, died April 27, 1937). He was one of only nineteen men (including seven Marines) to twice receive the Medal of Honor.

This is also the birthday of Corporal John Alan Coey (died 19 July 1975). He was the first American volunteer killed in Rhodesia.

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Today, we present another entry for Round 67 of the SurvivalBlog non-fiction writing contest. The nearly $12,000 worth of prizes for this round include:

First Prize:

  1. A Tactical Self-Contained 2-Series Solar Power Generator system from Always Empowered. This compact starter power system is packaged in a wheeled O.D. green EMP-shielded Pelican hard case (a $1,700 value),
  2. A Gunsite Academy Three Day Course Certificate that is good for any one, two, or three day course (a $1,195 value),
  3. 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,
  4. DRD Tactical is providing a 5.56 NATO QD Billet upper with a hammer forged, chrome-lined barrel 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, which can be assembled in less than one minute without the use of any tools and a compact carry capability in a hard case or 3-day pack (an $1,100 value),
  5. Gun Mag Warehouse is providing 20 Magpul PMAG 30-rd Magazines (a value of $300) and a Gun Mag Warehouse T-Shirt; (an equivalent prize will be awarded for residents in states with magazine restrictions),
  6. Two cases of Mountain House freeze-dried assorted entrees in #10 cans, courtesy of Ready Made Resources (a $350 value),
  7. The Ark Institute is donating a non-GMO, non-hybrid vegetable seed package (enough for two families of four) plus seed storage materials, a CD-ROM of Geri Guidetti’s book “Build Your Ark! How to Prepare for Self Reliance in Uncertain Times”, and two bottles of Potassium Iodate (a $325 retail value),
  8. A $250 gift certificate good for any product from Sunflower Ammo,
  9. Two cases of meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value).

Second Prize:

  1. 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,
  2. A gift certificate for any two or three-day class from Max Velocity Tactical (a $600 value),
  3. A transferable certificate for a two-day Ultimate Bug Out Course from Florida Firearms Training (a $400 value),
  4. A Model 175 Series Solar Generator provided by Quantum Harvest LLC (a $439 value),
  5. A Trekker IV™ Four-Person Emergency Kit from Emergency Essentials (a $250 value),
  6. A $200 gift certificate good towards any books published by PrepperPress.com,
  7. A pre-selected assortment of military surplus gear from CJL Enterprize (a $300 value),
  8. An infrared sensor/imaging camouflage shelter from Snakebite Tactical in Eureka, Montana (A $350+ value),
  9. RepackBox is providing a $300 gift certificate to their site, and
  10. American Gunsmithing Institute (AGI) is providing a $300 certificate good towards any of their DVD training courses.

Third Prize:

  1. A Royal Berkey water filter, courtesy of Directive 21 (a $275 value),
  2. A custom made Sage Grouse model utility/field knife from custom knife-maker Jon Kelly Designs, of Eureka, Montana,
  3. 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,
  4. Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy (a $185 retail value),
  5. Two Super Survival Pack seed collections, a $150 value, courtesy of Seed for Security, LLC,
  6. Mayflower Trading is donating a $200 gift certificate for homesteading appliances,
  7. Montie Gear is donating a Y-Shot Slingshot and a $125 Montie gear Gift certificate.,
  8. 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), and
  9. Fifteen LifeStraws from SafeCastle (a $300 value).

Round 67 ends on November 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.

Purchasing Power: Past, Present, Future- Part 5, by L.M.

If one was to purchase gold and silver as insurance and track the spot price at kitco.com on an hourly or even weekly basis, one is missing the purpose entirely. Do you review your health, home, or automobile insurance policies weekly? Of course not. You review it before you purchase it, put the policy in a safe place, and bring it out when you need it.

Then there is the camp that loves to argue that silver and gold are a worthless store of value and that good stocks with good dividends are the way to protect your purchasing power over the years, to be a store of value. Stocks are a superior alternative to precious metals, they insist. Besides, Warren Buffet stated, “Gold is a barbarous relic.”

In reality, the U.S. dollar is the barbarous relic. It is worth only paper and is used as currency by faith and tradition. Gold and silver have never been worth nothing. Even more confirmation of this is here: Gold still compares favorably with stocks and inflation

There have already been eight, yes eight, devaluations of the U.S. currency since 1933. In 1933 FDR outlawed the private ownership of gold. Most people foolishly turned theirs in. When all of the gold that was going to be got (wink, wink) was turned in, FDR devalued the dollar 59%. He raised the price of gold from $20.67 an ounce to $35 an ounce. In 1971, President Nixon raised the price of gold to $38 an ounce, and in 1973 it was raised to $42.22 an ounce. Wow! That’s three devaluations. Then the U.S. government ordered the Federal Reserve Corp to eliminate the silver from the coinage, which was another devaluation. Then the slow grind of the rising money supply from 1973 to 2006 forced couples to work just to live in a similar manner as their parents. Now, we have QE1, QE2, OPERATION TWIST, and QE3, which were ALL devaluations. That is exactly what the world and in particular, the Chinese, see. Everyone that bought our bonds is losing their value because of the creation of U.S. money. That is called monetizing the debt. It’s great for us, but it stinks for everyone else.

To understand the banking world you are forced to live in, this is excellent! This is your primer to understand way more than your friends or the typical American. Arm yourself with knowledge! It is a great intro.

Experts are telling you what they are about to do! Right now, today! This brings us to the end. (I think I already said that). I have paid attention and studied worldwide macroeconomics for over 35 years. This is the first time in history where we have every nation in insurmountable debt. Most all are in extreme debt, meaning that their debt surpasses their nation’s ability to produce income or Gross Domestic Product (GDP), as it is known. The U.S. has a GDP of approximately $17 trillion. Of course, you have heard that the U.S. debt is $18 trillion. And you may have heard that the U.S. unfunded liabilities, Social Security, Medicare, Medicaid, Fed Gov Pensions, et cetera is over 240 trillion. Okay, when speaking of ridiculous numbers and concepts such as the debt, who gives a hoot. There is no proof of the validity of any of these figures, nevertheless when I go to the grocery store and buy coffee I see the difference in package sizes. Remember?

At this point, it is best to conclude by reflecting on the long career of one of the best macro economists still alive today, Alan Greenspan. As head of the Federal Reserve Corp., he was horrible. Overseeing the transfer of manufacturing capacity and manufacturing jobs to China, he did a great job of gutting the USA. Of course, not to be outdone, the witless Ben Bernanke oversaw the transfer of 100s of tons of gold to China and the purchase of the JP Morgan worldwide banking headquarters located right next to the NY Federal Reserve Corp. The building has a tunnel to the NY Fed Reserve building! The Chinese bought it for under a billion $$$ when the complex was valued at over 5 billion $$$. Hmm.

Let’s get back to Greenspan. Before he was appointed as Fed Chairman, in 1966, he wrote the following:

An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense – perhaps more clearly and subtly than many consistent defenders of laissez-faire – that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other.

Check out the rest here.

Greenspan went on to be the fed chairman from 1987 to 2006. During that time he did not speak of gold like he did in the 1960s. However, he did deliver what we call forewarning signals at crucial times, and every time he was correct. To recognize these, one must listen to their speeches and decipher the meaning. For example:

  • In the late 1990’s he stated, concerning the dot com bubble, “That this unbridled exuberance in the market place cannot be sustained”. I thought about what he meant for about a month. Then it came to me. What he was saying was that the dot com bubble was going to burst; get out! We got out one month before the collapse.
  • In 2007, Greenspan said that “the housing market was frothy.” I had studied many speeches delivered by the Federal Reserve Corp. from the 60’s to 1980’s. By then I understood perfectly. In the futures market we bet that Freddie Mac and Fannie Mae were going to go lower. He was telling us that the housing bubble is about to burst, and it did.
  • Now, forward to 2014. He is answering questions at the International Monetary Fund (IMF). He is getting back to his original belief that gold, and to a lesser degree silver, are money. The rest are currencies. From his meeting at the IMF, October 29, 2014:
    • “Price of Gold Will Rise”
    • Greenspan said, “The only protection against inflation is gold”, and I would add silver
    • And what about QE? He made the following comments on the subject, Greenspan: “The Fed’s balance sheet is a pile of tinder, but it hasn’t been lit … inflation will eventually have to rise.”
    • Q: Why do central banks (still) own gold? Greenspan: “This is a fascinating question.”
      • He did not answer the question, but he did point out: “Gold has always been accepted without reference to any other guarantee.”
      • What does this mean? Understanding their language, what he said was that when you accept any world currency, you are trusting that government issuing the currency can back up the value of the currency. Gold and silver require no government, no promise, and no weapons to guarantee their value. Gold and silver have always been money and always will be money. Currencies come and go.

        While Greenspan did not want to comment on current policy, he was willing to give a forecast on the price of gold, at least in a Greenspanesque way:

        Greenspan: “The price of gold will rise.”

        Q: “Where will the price of gold be in 5 years?”

        Greenspan: “Higher.”

        Q: “How much?”

        Greenspan: “Measurably.”

    The conversation continued:

  • The reason this is most relevant is because many politicians think there’s unlimited money to spend. And, of course, if the Fed’s printing press is at the disposal of politicians, the temptation to use it is great. Not only is there the temptation, some politicians truly believe the Fed could and should help out any time. As Greenspan now acknowledges, these politicians have a point, but it is to the demise of the country’s purchasing power.

But what a pleasure it was to rediscover the old Alan Greenspan, before he turned his coat and forked his tongue. Back in 1966, when he still believed in free markets and sound money, he expressed himself clearly.

  • “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold in 1933.”
  • If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods.
  • The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
  • This is the shabby secret of the welfare statists’ (statists believe that the state/government should control everything) tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard
  • While I and my buddies have argued for many years that there might not be such a thing anymore as a safe asset and investors may want to take a diversified approach to something as mundane as cash, Greenspan’s talk adds urgency to this message. “The dollar has lost over 97% of its purchasing power in the first 100 years of the Fed’s existence.”
  • He said the promises made by the government cannot be kept. Mathematically, he said, it’s impossible.
  • And not to be pointed out as a lone voice, the Bank of International Settlements issued a new warning on markets in their Dec 2014 Quarterly Review. They issued yet another warning about “the growing fragility hidden beneath the markets buoyancy”. 
  • See http://us-issues.com/2015/08/05/list-of-imf-and-bis-systemic-risk-warnings/
  • in their Dec 2014 Quarterly ReviewOver the past few years we have documented numerous warnings which the IMF and the Bank for International Settlements (BIS) have issued in regards to risks that exist to the stability of the global financial system. Some of the warnings come directly from IMF and BIS officials and publications. One comes from a speech by BIS General Manager Jaime Caruana. Others come from articles appearing on the IMF Direct blog. One is a link to former IMF Peter Doyle who says despite issuing risk warnings, the IMF has failed in providing early warnings for systemic crisis.

This is absolute insanity! How irresponsible of this thing called the federal reserve!

How are you going to impact your purchasing power?

Median Income Example

All income tiers added together with the median for all:

10 10 11 11 12 12 13 13 14 14 15 30 35 80 85 = 365 / 15 = 24

After the end of the year, most all household income increased. Raising the median:

10 11 11 12 12 13 15 16 17 18 18 38 42 119 120 = 472 / 15 = 31

The lower tier of households. In our example, from the graph on page 11, below $200,000:

10 10 11 11 12 12 13 13 14 14 15 = 135 / 11 = 12

After the end of the year, most all household income increased. Raising the median:

10 11 11 12 12 13 15 16 17 18 18 = 153 / 11 = 13

The top two tiers with the median:

80 85 = 165 / 2 = 82

After the end of the year, most all household income increased. Raising the median:

119 120 = 239 / 2 = 119

Now do you see why they used the median as an indicator? The top tiers influenced the median, while the bottom tiers barely had an impact! After inflation is deducted, most of the bottom tiers went backwards.

Letter Re: Fingerprinted To Sell Gold Coin

Dear JWR and HJL,

It appears I have missed something along the way. I recently went in to a local pawn shop that a year ago was a coin and jewelry shop. My husband and I have purchased from the coin and jewelry shop a number of times and I had sold a gold necklace once. You surrender gold and get cash; it was that easy. The same owner turned it into a pawn shop. This time I went in to sell a single gold coin, and the owner took my drivers license information and my thumb print. I was caught off guard by this, and since I had some face-to-face history with the owner through purchasing, I handed it over with little hesitation. I only commented softly, “Really, a thumb print?” The owner replied, “Yes, I have to, but they have only asked for the information once with regard to a home robbery.” I smiled as I walked out the door, but it slowly began to occur to me what had happened. Days went by and I felt worse and worse about the I.D. and thumb print. I said to myself that it was only one small gold commemorative coin from 1986; it doesn’t mean anything. I live in Washington state. It appears that the all-watching eye has found a way to document every move we make. What good is it to have gold if you can’t trade it in? I was looking for a little cash for a more important purchase. Much thanks for all that you do. God help us – M.