Monday July 28 2008
Note from JWR:
I was quoted in a recent Alternet piece by Scott Thill: Massive Economic Disaster Seems Possible -- Will Survivalists Get the Last Laugh? Some of my comments were taken slightly out of context and in one instance mischaracterized, so it might be better for you to read my entire set of responses to Mr. Thill's interview questions. I should mention that if they were alive today, my great-great grandparents--that came out west via covered wagon in the 1850s--might be miffed to hear that they were branded as part of a "genocidal" movement. They didn't come out west looking to slaughter Indians. In fact, some of their sons married into a tribe. I have some cousins that are bona fide ("tribally enrolled") Native Americans.
Finding Your Land Rover in the Wild Kingdom of Banking
I grew up in the1960s glued to the television, like most other suburban kids. One of the shows that I enjoyed watching was Wild Kingdom, sponsored by Mutual of Omaha. The wise old narrator, Marlin Perkins, went way out in the hinterboonies of South America and Africa to film his documentaries. But I noticed that he was almost always a detached observer. It was usually his young, muscular assistants that were put in harm's way, but not Perkins himself, who was safe and sound. He often made comments such as: "'I'll watch from the safety of the Land Rover, while Jim wrestles the massive Anaconda. Ouch! Be careful, Jim!"
The Wild Kingdom documentary television show makes a nice analogy for the current banking crisis. (And, coincidentally, it was Mutual of Omaha that last week came to the rescue of two failed banks.) The recent news of numerous bank failures makes it clear that it is now coming down to survival of the fittest, in the banking world. Welcome to another episode of Wild Kingdom, folks. There are a lot of banks that are unfit creatures. The pools of credit have dried up, and these creatures are dying of thirst, and starting to stagger. The vultures are beginning to circle. Its a dangerous world out there, and if you are wise, you won't be in the thick of it, exposed to risk. Instead, you will find yourself a safe vantage point and simply observe, nod, sip a Mint Julep, and make sagacious comments like: "I told you so", and "Those poor, deluded souls."
So where will you find your safe vantage point, from which you can observe the dramatic unraveling of the banking system? What will be your "Land Rover" equivalent? I've said it many times before: tangibles. You should shelter the majority of your assets in either productive rural farming or ranching land (that can double as a retreat), or in tangible, easily barterable assets that will hold their value. For the latter, I prefer practical tools, rather than baubles. You can't eat Krugerrands! In the real world, Beans, Bullets, and Band-aids are much more practical.
In the next few weeks, as the nascent wave of bank failures accelerates, you will likely be hearing a lot about the"Texas Ratio" of any given bank. This is the ratio of a bank's assets and reserves to its non-performing loans, based upon its financial data. Conduct due diligence on your bank, and cover your assets! It is best to have accounts with several institutions rather than just one.
Start your research by reading this article: Calculating Your Bank's Health. Also, don't miss this piece by Mish Shedlock. Based on Mish's warning, it is clear that you should not depend on Bankrate.com, since their evaluations are glaringly inaccurate. Instead, I recommended Weiss Ratings (now part of TheStreet.com) as a more objective judge of the the safety of banks and insurers. I have recommended Marty Weiss to my consulting clients for many years. Marty and his staff do excellent research and, unlike many of their competitors, they are truly independent and objective.
Letter Re: Advice on Food Storage and Preparation
Hi James:
Thanks for publishing my past essay and thanks again for what you do on your SurvivalBlog. Your web site and the consequent path I've traveled since I began reading here has put me in contact with many folks who are pursuing similar courses of action; to take personal action to be prepared, and when possible to discuss and work with others to secure a survivable future.
Please advise me on some of the best and up to date books you've found on food storage. Being new to this line of endeavor, I feel our family needs some better ideas on organizing food and storage methods.
My apologies if you've already covered this topic or already made such recommendations on your site. All Our Best, - Jon F. in New York
JWR Replies: Don't worry about redundancy, Joe. The importance of food storage cannot be overemphasized. Most of what you'll need to know about food storage is available in Alan T. Hagan's Food Storage FAQ, which available for free download. I may be biased, but I also recommend my own "Rawles Gets You Ready" preparedness course, available from Arbogast Publishing. It is geared toward stocking up with little more than what you can find at your local "Big Box" store or supermarket. It includes some extensive tables on the shelf lives of various foods.
One often overlooked aspect of food storage is how to cook and bake with the foods that you've stored. Three books on this subject that I strongly recommend buying are:
and,
Making the Best of Basics. OBTW, if you use this link to Lehmans.com, we will get a credit from Lehman's when you place an order for any of their products.
and,
The Encyclopedia of Country Living. (I've heard that the new 10th Edition of Carla Emery's book has just been released. Reader Jeff F., mentioned that his local Costco (in Woodinville,Washington) had the latest edition on sale for $17.99. (The list price $29.95). So check your local Costco.
Letter Re: Cigarette Smoking and Preparedness
James,
My husband and I think you are smart and I was hoping for a few words about cigarette dependency (and perhaps alcohol as well).
We are fairly prepared and often strategize on making our plan better. I see cigarette smoking as a weak link. Just when I am going to need his help the most, he will be in the fetal position with withdrawals from the inability to smoke. Or perhaps I will have to deal with lung disease when there are no doctors available. A person can't successfully hide while smoking. There is extra tension and confusion from quitting cold turkey and that will come when a clear head is most needed.
This is an addiction issue rather than an intellectual one, but if you have advice (either how to get him to quit, or how I can plan around it), I would be very appreciative. Thanks, - Anna
JWR Replies: Thanks for raising this issue! The expense and health issues are tremendous. But even more overwhelming--as you pointed out--is the prospect of going Cold Turkey, starting on TEOTWAWKI+1. In the event of a catastrophe, our stress levels will already be critical, and adding one more major stress could be enough to push some folks to the point of a nervous breakdown.
There are umpteen methods for quitting smoking. I recommend that my readers try as many of them as necessary until you finally quit the habit. Since I've never smoked, I'm hardly the one to opine about the "best" method to quit. Perhaps this article is a good starting place. The only advice that I can offer comes to you from my perspective as a Christian: I believe that prayer is very helpful in breaking the bonds of any addiction. Just ashamedly admit your bad habits as the sins that they are, and repentantly ask God to free you from them. Prayer works!
Odds 'n Sods:
Reader Gary J. asks: "So, you say you don't have any room to garden where you live? Maybe you actually have a lot! You might like to do a web search on "vertical gardens" and check out this site: GardensUp.com
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Several readers mentioned a recent blog entry by Charles Hugh Smith: Yes, There Will Be Armageddon: Government Goes Bankrupt
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I spotted this linked at Drudge: U.S. Foreclosures Double as House Prices Decline. I strongly recommend that anyone looking for a rural retreat property should studiously monitor the foreclosure listings, via a service such as Foreclosures.com. There will be some genuine bargains in the next few years.
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Reader Ken R. recommended a "must read" piece by James Turk, posted over at DollarCollapse.com: Last Plane Account. Ken notes: "This article clearly outlines that tangibles including a ranch or farm are the best investment of all when TEOTWAWKI arrives. Your thesis is correct!"
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