The news headlines have been packed with economic Gloom and Doom, in recent weeks. To many observers, things seem to be spinning out of control–with collapsing credit markets, massive bailouts, emergency cash infusions, and taxpayer “stimulus” checks descending like Manna from Heaven. Given all this news, it is timely to discuss three rules: Section 13(3), Rule 1830, and Rule 308.
Section 13(3) of the Federal Reserve Act (of 1932) empowers the Federal Reserve banking cartel the power to lend to any corporation or to any individual using any collateral. The only proviso is that the Fed must declare that this lending is necessary for “unusual and exigent circumstances.” Recently, trying their best to counteract the global credit collapse, the Fed has frantically handed out cash at an alarming rate. Since February of 2008, I’ve been warning you about the “Non-Borrowed Reserves” figure at the Federal Reserve web site. Bank reserves are plummeting deep into negative numbers. As I’ve mentioned before, when you look at the US banking industry in aggregate numbers, there are effectively no genuine reserves left. If the average bank depositor was aware of this, then there would already be huge bank runs in progress. But the Generally Dumb Public (GDP), is still largely ignorant, and continues to be lulled into a sense of complacency by their long-standing universal depositor’s insurance that is backed by “the full faith and credit” of the US government.
At 6:30 p.m. (1830) on Friday evening, this story was released the news wires: Florida Bank Closed by FDIC. This was the eighth reported US bank closure in 2008. Hmmm.. This is not the first time that the FDIC waited until after business hours on a Friday evening to make an announcement of a bank closure, to minimize mass media attention. So I guess I’ll have to add a new new Rule to my list: Rule 1830. To minimize any ruffled feathers, The Powers That Be will wait until 1830 on Fridays to issue any “bad news” press releases. It will be interesting to see how the Federal bank regulators try to spin the news stories about any more extensive bank runs. As I’ve written in before: they are coming!
What will happen if the economy tanks, plunging the western World into an extended economic depression? If the Schumer hits the fan, you may have to implement Rule 308. What rule is this? Rule 308 not a rule at all, but rather an informal collective understanding that if times get truly Schumeresque (times when law and order evaporate), you may have to handle your own law enforcement, with a rifle in hands. Hence, the number 308–which refers to .308 Winchester. (Also known as “Rule 303” in British Commonwealth countries, as popularized in the movie Breaker Morant–referring to the.303 British cartridge.)
In my three years of correspondence with hundreds of SurvivalBlog readers, I’ve encountered a few people that seem to be in denial of Rule 308. Most of them are either pacifists or they are naively confident in the ability of their local police or sheriff’s deputies to faithfully arrive on their doorstep, just a few minutes after being summoned, ready to arrest and haul off any marauding goblins. Most recently The New York Times article that featured some Suburban Survivalists. One of them mentioned to the reporter that she didn’t own a gun, because she didn’t “want to shoot anyone.” I don’t want to shoot anyone either, but I’ve if I’m ever forced into inimical circumstances, I’ve made the option of self defense available to myself and to the members of my family. I’ve done so by buying plenty of guns and ammo, and by taking the best training available (at Front Sight), and by practicing regularly. I refuse to be just another helpless victim. I certainly won’t eschew the means of self defense, as some others have done. There are far too many people that assume that someone else can handle such tasks for them, regardless of circumstances. This is the same sort of naivete that I was talking about near the end of my recent interview with Alternet. How can people be so incredibly naive?
Even in normal times, the police have a spotty record of rapid response. More often that not, a violent crime is over and the criminals have departed the scene by the time that the police arrive. Sadly, the police end up just filling out paperwork and body bags, post facto. It goes against all reason and common sense to expect that in a disaster situation that the police will arrive even the same day, and even that is assuming that there is still a functioning telephone network. Other folks somehow expect that the goblins will pass them by, just because they themselves are somehow special and enlightened beings. That is hogwash. Dennis Wholey, a television host and producer, said it best: “Expecting the world to treat you fairly because you are a good person is a little like expecting the bull not to attack you because you are a vegetarian.”