Greece and devaluation

A new government may have to respond with capital controls to prevent citizens, faced with potential devaluation of their savings, from withdrawing their money from banks, said Dawn Holland, a senior research fellow at the National Institute of Economic and Social Research in London.

“This has to happen very quickly, as capital flight has already happened,” she said. “This is when things could get ugly too, as on an individual basis you cannot blame people for wanting to hold on to their euros.”

Back in the 1860′s, right after the War Of Southern Overconfidence, that Confederate money was worth….what? Nothing, right?

Back in the Weimar, around 1920-something, the Marks you got paid on Friday would buy only half of what they bough the previous week.

In Harare, your life savings of 1,000,000 dollars suddenly became 1 dollar at the stroke of pen. And it still wouldn’t buy you a dozen eggs.

If there really are bank runs going on in Greece, where do you think people are sinking their money to keep it’s value? I would guess that, like the Germans, it’s going into durable goods, food, medicine and those shiny little bits of metal.

Still

Silver continues to sit below $30. I have been quietly trying to buy as much as my meager resources allow. Will it fall further? Maybe. Maybe it’ll drop to below $25. Will I then feel I was foolish buying it at $28? Nope. Not at all. I’m in it for the long haul. I mostly only care about the price of silver from the standpoint of how much can I buy at this moment with the cash available to me. I feel this way because when the time comes to sell or trade it, the purchase price, no matter what it was, will be nothing compared to whats going on when it comes time to sell. Or, put another way, I don’t care how much a parachute costs today because when the time comes that I need it, things will be bad enough that it’ll seem like it was a bargain no matter the price.

Cool gifties

I must be living right or something. My precious metals pimp came by and flipped me a silver round, telling me that someone from the blog ordered up a buncha silver and said to push an ounce in my direction. Anonymously, of course. So, again, when the end of the world is old news and I’m down at the Thunderdome bartering for a desperate, hungry, yet still….buoyant….Christina Hendricks to be my new housekeeper and bed warmer, I will look back fondly and with great appreciation at the anonymous benefactor who made such a thing possible.

Thirty bucks

There you go. Silver back below thirty. I see it as a ‘buy’ time, but, true, it may go even further and not get above thirty for a long time to come……..

And we may have a global economy that doesn’t shoot it’s own legs off, unemployment at record lows, a roaring national economic recovery, inflation kept in check, and fiscal responsibility as the norm.

So, yeah, buy.

Article – ‘Civilized People Don’t Buy Gold’: Berkshire’s Munger

“Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939,” the Berkshire vice chairman said, “but I think civilized people don’t buy gold, they invest in productive businesses.”

Well, a few nations like China and Venezuela have been hot to buy gold lately, so that supports the ‘uncivilized’ part. I wonder if what he meant to say was ‘civilized people dont invest in gold’. That might make more sense, since gold is for storing wealth rather than growing it, IMHO.

Post-collapse coinage

My buddy, the precious metals dealer, came by the other day. Apparently someone familiar with the blog ordered up a buncha silver from him and said “Hey, take one of these rounds and give it to Commander Zero as a gift from a reader.” And that’s  exactly what he did. He’s also being reluctant to say who it was since whoever (whomever?) it was wants to fly under the radar. So…if you’re the guy who gifted yours truly with a shiny silver round, thank you very much. When the economy finally collapses I’ll think highly of you as I barter it for food, ammo, and desperate-yet-still-hot college coeds.

scoredroundSpeaking of post-collapse, while I was jawboning with him, my buddy mentioned he’d gotten in some silver rounds that were scored so you could ‘make change’ by breaking them into 1/4 ounce wedges. As if that wasn’t enough to tell you who the intended market for these rounds was, each one has “For When You Have To Get Out Of Dodge” on the reverse. Clever. I suppose that when silver starts becoming the new currency and you can use a 1 oz. round to buy just about anything, it’ll be handy to be able to divide it somewhat neatly into a smaller ‘denomination’. While there are plenty of 1/2, 1/4, and 1/10 gold coins out there you normally don’t see much ‘fractional’ silver. (I guess thats where the junk silver coins come in.)

Nonetheless, theyre a cool looking round and if anyone is interested in them you can find them here.

Comments about two letters re: gold and guns

Two emails I received the other week got me thinking.

The first one was a comment about this post where I wound up picking up some 1/10th oz. gold coins. The person sending the email asked if I thought that was a wise idea, since the .gov could simply ‘seize’ privately held gold like they did in ’33. Wouldn’t it make more sense, they supposed, to get your gold in the form of ‘collectible’ coins since those were exempt from those controls in 1933? That way, if the .gov goes after people’s gold again you won’t lose your gold.

This is an idea espoused on several talk radio shows that advertise for gold dealers….most notably, Glenn Beck. As I read it, some forms of gold were exempt from what happened in 1933. So what? Why would any person with a reasonable amount of intelligence believe that if .gov were to seize gold again, they would do it the same way they did in 1933? Do you really think that they’ll simply dust off ol’ #6102, change the dates, and hit ‘Replay’? Of course not. They’ll write a completely new order..or law..or edict…or whatever…and if you really think they’ll make an exemption like that again you’re kidding yourself. Oh, perhaps there’ll be exemptions for things like dental gold (because the logistics of replacing millions of peoples teeth is just ghastly) and that sort of thing, but you really think they’ll make an exemption like they did in ’33..especially after how that exemption has been trumpeted by the radio gold dealers for the last few years? Save your money that you’d put into those “safe” coins that were “exempt from confiscation” and just buy more of whatever gold has the least premium.

The second email I got was similar to the first. Instead of asking about gold and forms of it that were exempt from .gov control, they were asking about guns. Did it make sense, they asked, to buy guns that were older than the Federal cutoff? Some fast background….in the eyes of our friends at .gov, any gun made before 1899 isn’t considered a gun. At least, not for the purposes of Federal legislation. If the gun in question was made before 1899, the feds don’t see it. The gun laws (generally) only apply to guns made after that date. (Exceptions are things like NFA weapons like machineguns and that sort of thing.) So, the story goes, you buy yourself a Winchester 94 made in 1898 and it has no Federal footprint…no paperwork to buy it, no paperwork to sell it, etc, etc. I suppose you could even make the argument that a ‘prohibited person’ (a person not normally allowed to own guns) could own it since in the eyes of Uncle Sam that Winchester is not a firearm. Find yourself a nice old Mauser, tear it down to it’s heat-treated receiver, build it up into a Scout Rifle or ‘sniper gun’ and it’s mostly invisible to Federal regs. When the .gov says ‘turn in all your firearms’ you’ll be able to smile, lovingly pat your kevlar-stocked, Lilja barrelled, Leupold scoped, .308 Winchester Mauser and say “Sorry, sir…this is exempt because it’s receiver was made before 1899″ and while the rest of the nation is disarmed you’ll still have your rifle. At least, I think thats how it’s supposed to go.  And that’s great except it hinges on the same utterly crucial point as the gold question – it relies on .gov doing exactly what it did before (or, in the case of the guns, doing exactly what it has been doing up to this point.) I don’t know about you, but I really don’t think that if .gov could pull off the legislative maneuvering to enact a nationwide ban or prohibition on firearms ownership, complete with confiscation, that they wouldn’t also do the legislation to get other things under that umbrella that currently are not…like guns made before 1899, black powder firearms, etc, etc. So, no, I think you’d be better off buying more AR’s or AK’s than spending the money on a Lebel rifle and rechambering it to a (more) modern caliber so you can ‘beat’ the system.

In the military theres a saying about how they are always preparing to fight the last war. What that means is that they think the next war will be like the last war and so they plan to fight it the same way. Then, naturally, the next war comes along and it turns out it was nothing like the last war and they’re caught somewhat unprepared. Trying to outgame .gov is very much the same way. Just because Uncle Sam did something a particular way last time and and there were loopholes doesn’t mean that when he tries it again he’s going to leave those same loopholes in place.

USB charger adaptor, metal swap, mission statement

Lotsa devices these days charge through a USB-style plug. Handy for many applications, but I have a few devices that use the usual (and, I suppose, ‘old fashioned’) single-pin plug that has a polarized tip…you know the kind. Thing is, the small solar panel that I have for charging small devices has a USB outlet. So, what I’m looking for is a USB->cylindrical pin sort of cable. Now, yeah, I could fab one up, I suppose, but I’d rather have one purpose-made than something I rig outta Radio Shack parts.

While I’m on the subject, I also need to hunt down some sort of charger that lets you charge a USB device off of a couple D-batts or a few AA-batts.
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Was rummaging through our stash of silver the other day and although I try to keep the purchasing price low by buying whatever form of silver is cheapest (generic rounds, generic bars, etc) there is something to be said for uniformity of size. I like silver rounds because they fit in plastic tubes, which makes them easy to store. So, I traded out some 1 oz. silver bars for 1/10th gold Krugerrands….talk about space saving….it takes a little over 5 oz. of silver (at the time) to equal 1/10th of an ounce of gold. Thats about 50:1. But, I pick up silver more frequently than gold so it makes sense to keep buying the silver, wait until the silver:gold ratio is favorable and do a little swapping. My metal-dealing buddy does these sorts of swaps so it was pretty easy to just call him up and ask him how much silver it would take to trade for 1/10th Krugerrands. (The Kruges, by the way, had a lesser premium that the 1/10th US Eagles. I don’t care. I want the most metal for my money, so since the Kruges had less premium thats what I went with.)

If you’ve never handled a 1/10th oz. gold coin, its rather humbling. They’re the size of a dime but require about 1800 dimes to buy. And, oddly, they are rather heavy for their size. It’s kind of strange to hold this tiny, tiny coin in your hand and think about the amount of energy that is contained in such a tiny package. This little dime-sized bit of metal will fill a 55-gallon drum with gasoline, or buy human labor for three 8-hour shifts, or buy a Mosin Nagant and a spam can of ammo, or buy two weeks worth of groceries. That’s a lot of potential in a very tiny package. And, as the price of the metal goes up (or the value of the dollar goes down, however you prefer to look at it) that potential is just going to increase.
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I was reading a blog somewhere where someone posted a link to this blog and called it a ‘news site’. I don’t know what to say. I don’t think of it as a news site….I don’t think of it as an instructive how-to site, either. I never claimed to be either one. What I have said that this site is, is a website about one persons continuing foray into preparedness and the observations and experiences that accompany it. I suppose if it had to be ‘labeled’, I’d call it a lifestyle blog. But, really, it’s a mix of everything while trying (usually) to stay on-topic in regards to things that other people who are into preparedness would find interesting.

Silver back up

Well that was interesting. Apparently the problems were all on Yahoo’s end of things. Apparently it started shortly after they did a scheduled maintenance. Regardless, I’m hoping the worst of it is over. It was, though, a reminder that I need to keep backups around. The stuff I post isn’t exactly literary gold, but it’d be tough to have to manually replace almost ten years worth of posts.
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At the moment, silver is >$33/oz. which means if you bought it on that dip below $30, you’ve realized a gain of 10% in less than a month….a return that I think you’d be hard to find in any other ‘conventional’ investment. Of course, selling off and pocketing the 10% is completely out of the question for me…I don’t buy it to sit on and turn around for a fast profit. I buy it to hold on to for the time when a $100 bill won’t buy me a tank of gasoline, but an ounce of silver will. As I’ve said before, I get my silver from a buddy in the business and if you want to accumulate the stuff in a painless, simple, and automatic way his ‘subscription plan’ is the way to go. Tell him I sent you, get free snark with every purchase!
I suppose this opens the question of “how much to have” in regards to silver/gold. I suppose that like ammo, porn, lasagna and arable land, you can’t have too much. But, realistically, the more prepared you are in other areas, probably the less of the stuff you’ll need. I mean, if you have absolutely no food then you’re probably going to need a lot more gold/silver than the guy who has five years of food, a herd of cattle and a section of prime farmland. If you think of precious metals as a form of insurance, then the more ‘self insured’ you are, the less you need. Of course, compact wealth is also kinda handy too. Especially if you need to sew something into the collar of your coat to later use to bribe a border guard or something.