You Can’t Eat Gold
Wednesday, May 19th, 2010Author Linda Brady Traynham
Actually, a few people do eat gold and silver after it has been pounded tissue-paper thin and used as a decorative touch on very costly confections. In general, however those screeching about “barbarous relics” are quite correct that we cannot eat gold. Where they err, as one would think obvious even to Keynesians and Statists, is that we do not buy gold to eat, and even silver isn’t meant primarily as emergency rations.
The biggest fallacy is thinking that any of our investments other than freeze dried meals are intended for human consumption. We cannot eat share certificates of AT&T. We do not nibble on a new Mercedes, nor do we slice bonds up for sandwiches. Dividends from utility companies are not edible and stacks of hundred dollar bills have never been fried like potato chips to my knowledge.
Back to the beginning:
1. What is money? Money is anything we all agree has value, preferably something difficult to counterfeit, easy to store, that has passed the test of time as desirable to most people, most places, most of the time. It is a medium of exchange, an abstraction that makes it possible to work out the relative worth of chalk, cheese, Calomine lotion, and Coach footgear. It can be–and has been–items as odd as a bronze casting of a sheepskin which the Phoenicians agreed was “worth” twenty-five genuine sheepskins, beads carved laboriously out of quahog shells, and salt, from which our word “salary” is derived.
2. What is the purpose of money?
A. To prepare for the future, either to ensure that there are funds to live on after retirement or to accumulate start-up capital for a business.
B. To pay all bills and current living expenses.
C. Anything left over can be spent joyously or used to increase the amount put into A.
D. If you get enough of it, money is a fine way to gather power.
3. What is “fiat” currency? An artificial form of money, normally made of paper or metal, now created in digital form as well, whose value is dependent upon what we refer to with considerable scepticism as “the full faith and credit” of whoever printed or minted the stuff. The less trustworthy the issuing authority, the more unstable the fiat money and the less it buys as time continues.
4. Why do governments print money that is not backed by anything tangible? Because they can. Because printing money is a lot easier than honest ways to come by wealth. Because such currency illustrates the law of diminishing returns beautifully. It is worth a little less every time more is created, and each new issue benefits the first two or three to hold it (the federal government, the Fed, those who are bailed out, crooked politicians, union leaders, and so forth.)
5. “What is meant by ‘inflating our way out of our debts?’” The more there is of anything the less it is worth. When the government triples the supply of USD extant (not counting the splendid North Korean version) in less than a year, in theory all that additional cash will be spent on activities which bring in tax revenues (contemptuous snort; those are still way down) and this money will be spent to pay government debts, only it never is. The Feds admit the new money isn’t worth as much, speaking of repaying obligations with “cheaper dollars.” Other than it being a totally idiotic notion for our government to counterfeit money, the big problem is that only governments, assorted banks, congressmen, and their friends, unions, and drug dealers actually have more money. You and I don’t have any way to benefit from those “cheaper” dollars. We have the same salaries we did before, and what has actually transpired is that our money is worth less. It buys less. It doesn’t go as far. And that’s why you’re eating hotdogs and meatloaf instead of steak.
6. What can we do about this? Nothing. Well, we can wait for the entire system to collapse, which it will, and we can do our best to starve the tax beasts. That does not mean to evade your taxes because that can get you put in jail and you wouldn’t like it. Curtail your consumer spending. Buy as much as possible from friends, second hand, off Craig’s List, thrift stores, and any place else which does not involve sales taxes. Y’all know how I feel about damnyankees, but there is one saying I approve of: “Use it up, wear it out, make it do, or do without.”
7. How will it help if I cut my spending? Three ways, for sure. You won’t go further into debt, you won’t get a bunch of stuff you don’t need and will have to find storage or display room for, and you will hasten the time when even the tax-and-spend vote-buying crowd realizes that there simply isn’t enough money to pay for all their loony ideas. They’ll have to get tough and tell government employees they can’t retire at 50, they have to hold out until they’re 55…and never mind that ordinary people now have to be 67 1/2 to draw Social Security. Congress can do to themselves and federal employees what they did to the military: cut our “guaranteed” retirement income by 20%. Nobody knows better than former military that government promises are written on water. Congress gave itself a raise of over 5% this year, and declared a three-year moratorium on COLA for old folks, while raising fees for mandatory medicare. Oh…and if you didn’t know, your W-2 next year will list the “value” of your health insurance plan as income, so you can pay tax on it. Won’t that be fun? Medicare costs me over a hundred dollars a month. Last year it cost me over $400 every time I saw a doctor (I need one only rarely), and now they’re going to tax this benefit I didn’t want in the first place. Medicare doesn’t cover glasses, which I do need, or dentists, which we all need. Many of you are paying around a thousand a month (in salary you don’t get) for your health insurance plans, and if Obamacare isn’t cut down by the courts your mandatory coverage is going to cost a lot more than that, taxable.
8. Rule: it is easier to curtail spending than it is to raise income. To determine the true cost of anything, add 50%, because that supposes that you lost a third of your income to taxes in the first place, a gross underestimate. Next year the rate will increase to 39%, plus sales tax, and possibly plus a VAT, goody glee. Sweden, here we come. My first suggestion is to forego things we have all come to regard as “normal,” yet the world lived without for millenia. For example, premium channels on your cable bill. Better yet, cancel the service entirely. You can get better news and weather off the Internet, and probably get a couple of local channels for free. Take a good hard look at your cellular ‘phone bill, and your land line bill. Sure, it is convenient to be able to call every member of the family, and your teenagers will insist you are ruining their social lives if they can’t text, but they will adjust. It’s a novel notion, but you can all read library books or play Monopoly, Cribbage, or Bridge. Work in the garden you should be growing. Cut fast food out of your lives; those expensive calories are very poor nutritional and taste value.
9. Start a war chest with what you save. Use it to stock up on food and things you could use for barter, such as coffee, whether you drink it or not. I’m a hard core Doom & Gloom type, and I think we are going to see very hard times. One of the provisions in the Food “Safety” Act allows the government to confiscate all the food in your home or in any given geographical area, so I suggest caching at least a couple of months’ worth where it won’t be easy to find. No, that is not illegal NOW. “If” things go bad, the new money will be food and survival supplies; no one with any sense will accept Federal Reserve Notes for beans, bullets, or bandaids. Stock up on other people’s vices. I, for example, cannot abide the taste of coffee, but much of the world feels it can’t start the day without it. Every time I see coffee on sale I buy it, and the price will rise as a crisis spreads and lengthens. Sell it by the can? Oh, no, indeed. Mine will be for sale by the measure, and if I’m feeling generous it will cost an ounce of silver for enough to make two pots. Your neighbors will rediscover old substitutes such as chickory, roasted acorns, and burned bread crumbs, all of which apparently taste as good as they sound. Tea, hot cocoa packets, popcorn, and dried fruit will be highly desirable.
10. Let us suppose that there is a breakdown in the food supply and distribution network, and throw in at least a curfew if not martial law. Then what is money? “Money” will be whatever you have that someone else will trade you what you want for it. Expect to discover the hard way how little diamonds are worth in such situations. As noted, you can’t eat gold; all gold is good for is storing excess value you hope to start over again with once the bad times are through. During the gold rush in Alaska the price of an egg was one dollar–the same dollar that paid a cow hand in Texas for a day’s work. When all you have is all there may be for a considerable time, would you sell a package of toilet paper or a box of Bisquick for three times what it costs now in dollars? I certainly hope not! You can’t eat dollars, Euros, or renmimbi. A classic trade good you can pick up inexpensively now is ordinary soap of any kind–bar soap, dishwashing liquid, laundry detergent, shampoo. A bar of soap caused riots among German ladies in WWII. Forget the nylon stockings! Those were good for a pretty girl’s time, but the hausfrau wanted her seife. I would have a nervous breakdown without at least plenty of legal pads and boxes of good gel pens, because we may well lose either power or the Internet or both. Your fancy new SUV? Valueless when there is little or no gasoline and no place to go if you have some. The stores will be empty. Salt. Plain, old, ordinary, much-maligned Morton’s iodized salt. You’ll die without it, you know. Salt is also good for preserving food, and what are your plans if the power goes out for days and you have a freezer full of meat? Unless you have a grill and plenty of charcoal or a wood stove, your two choices will be to pull out the recipe you printed out ahead of time and “corn” beef, or to pull off a couple of screens, slice the meat thinly, diagonally across the grain, and make jerky. If you sandwich the meat between the washed screens you’ll keep most of the flies off of it. If you have advanced warning jerky can be made in the overn (set at about 200 degrees), in a dehydrator, or in an ordinary cardboard box with a 100 watt lightbulb hanging in it. Money is a medium of exchange, and if want and famine stalk the land jerky will be a very fine form of money. If you invest now in at least an 1800 watt grinder and sausage stuffer (don’t forget casings and seasoning) you can make and smoke sausage.
11. Hand lotion might be useful as a trade good. Ladies who are washing clothes and dishes by hand will be glad to have it–and do buy a couple of enormous boxes of rubber gloves. If the very worst happens we may face some very unpleasant jobs, or even have to bury cholera or typhoid victimes. A case of chapstick, all the matches you can get your hands on, small dollar store sewing kits, candles…ordinary, every day things now, but anything you would take on a camping trip will make excellent “money,” including books.
12. What is the value of a can of cat food when kitty says indignantly, “Mao?!” I will go hungry before our three enormous rescue dogs do, but in times of siege and famine cats, dogs, and small rodents disappear rapidly, and isn’t that a jolly thought?
13. Hit the Good Will and pick up sturdy old sweat suits, jackets, and blankets. If you don’t need them yourself, those less prepared than you are will pay top “dollar” for them. Buy woodland or jungle camouflage fatigues (now called “BDU’s) just in case you have to hide out in the woods for a while. A good old fashioned cast iron skillet and a non-electric drip or percolator coffee pot…dollar store Ibuprofin, flyswatters, toothpaste…if you don’t think toothpaste and even a cheap new toothbrush will be luxuries, you haven’t done your homework, and you haven’t considered how very disorganized and unprepared most of the populace is for a major disaster. You can buy good knives inexpensively…now. I think I’ll buy a hundred next time I find some I like for a dollar, because they’re out there.
14. The bottom line is that if the dollar crashes or is devalued “money” will be food, survival necessities, and things you buy now without thought. A tube of lipstick, spare batteries for your child’s iPod, containers for gasoline and water, lots of plastic bags, zippable or twist tie, tinfoil, razor blades, space blankets (currently about three bucks at Gander Mountain), vinegar, bleach, cough drops, birth control devices/products, fish hooks, hand crank can openers, pony tail gizzes, aloe vera gel (good for burns, stings, sunburn), inexpensive New Testaments, anything that would add a little comfort to life.
My system isn’t so much to shop by list as to shop by what is on sale. Over time–and I started four and a half years ago–it all evens out. If what’s on sale 10/$10 is pineapple rings, buy those. Buy anything reasonable that is a form of vitamin C, including the powder or tablets. Scurvy is a horrible way to die, and it didn’t just happen to sailors with Sir Francis Drake. When citrus fruit no longer comes from Hawaii, Florida, and the Rio Grande Valley where do you propose to buy lemons, oranges, and limes? (My plan was to grow my own. Thus far the goats have eaten seven six-foot lemon trees, ripe fruit, blossoms, buds, leaves, and all. Goats will eat ripe jalapenos and just look interested in some more while finishing the leaves. If you have a fireplace, stock up on firewood.)
Haunt Craig’s List and see what is going for well under market value. Two years ago we bought motor homes and travel trailers between $50 and $100/running foot. You can live in one of those if you have to, and you can store your emergency supplies in one, and if you ever have to “bug out” you can be on the road fast. Right now horses are cheap, and we’re planning on picking up a couple more.
When you see something you like and use that stores well–be it brownie mixes, Bush’s Baked Beans, or asparagus–on sale buy at least two or three cases. You may never see it at a good price again. My biggest mistake, early on, was finding 16 oz. cans of cooked mackeral for a dollar. I’m not fond of fish, so I only bought ten cans. That’s an awful lot of protein for the money, and it may come to pass that we aren’t going to be nearly as picky. Has anyone else noticed that not only is tuna sky high but you can’t get it packed in oil anymore? That in water deteriorates faster and has less flavor. Don’t think “That’s enough for now,” something men tend to say. No, it isn’t. Get all you can afford of what is on sale every time it meets the criteria of food value and palatability. DO stock up on whatever your family loves; in our case there are three of us who are crazy about smoked oysters! Those won’t be a popular trade good (although people are going to be craving fats) but we don’t care since we plan on eating all of them ourselves. If you have a cool room or root cellar pick up things that could go rancid–peanut butter, olive oil, safflower oil, even Velveeta will keep a long time if just kept cool. Butter freezes beautifully. Did you know that you can starve to death camping by a trout stream where the fish all but jump in your pan because they are so lean? Your body NEEDS two tablespoons of mixed safflower and peanut oil a day for what are known as “essential fatty acids” because they are necessary for good health.
Spices and condiments! Boredom is going to be a big factor, and I have never understood the Mormon passion for stocking vast amounts of flour, milk, and honey since I don’t know anything to do with them other than make bread and sour dough pancakes. I read today that the “emergency grain reserves” in the US are sufficient to provide every, um, “citizen” doesn’t work…resident with half a loaf of brread. Not good. Not good at all. Learn to use sour dough, but buy plenty of yeast, too. I really like that idea; if you could set up and guard a small stand, you might do a roaring business in flour, sour dough starter, and a basic recipe leaflet. In the old West cowboys would ride a hundred miles to find a lady who could make “bear sign,” known to us as donuts. Laughter…a very expensive government study showed that what men really like us to smell like is a combination of donuts and pumpkin pie! Grandma knew what she was doing when she dabbed a little vanilla behind her ears.
We’re spoiled, people, and we may have to make compromises we aren’t going to like at all. The Dutch, who know at least as much about cheese as anyone, insist that cheese isn’t fit to eat until it starts to mold. Cut the blue-green parts off and eat the rest. The blue and gray molds are harmless; if you ever get pink in your sourdough starter, throw it out. If meat gets slimy or green, feed it to the dogs or the hogs, who won’t mind and won’t get sick.
What it comes down to is that some of us expect a period during which “money” is commodities and consumer goods. If we’re wrong, you can use what you buy over at least half a dozen years. “Expiration dates” are just another Liberal ploy to destroy wealth. If it doesn’t smell bad and the can isn’t bulging (neither of which I have ever seen,) simmer it a while and eat it. A friend who went all out for Y2K is just now finishing up his stockpiles, and all he lost was a few cans of tomato sauce. I solved that problem by buying spaghetti sauce (when it was a dollar a quart.) The taste isn’t quite as good, but it comes in reusable glass jars instead of cans it can eat through, and can be used in many ways, such as pizza, stew, and soup.
My last word of advice is to consider what you find most desirable, what you think others will want to trade for, and what you are willing to accept in return. If you have more than ample food for a year AND can restrain your pity, compassion, and generous impulses, you can consider swapping for gold or silver, but I wouldn’t cut it any finer than that. Sure, it would be pleasant to sell your bargains at very high prices, but you really can’t eat gold, silver, diamonds, cars, furs or even land, the only thing I’m willing to trade for. The funds we put in precious metals are our start-up capital when sanity returns. FIRST we have to get through the crash, and during that time “money” will be food, fuel, medicine, and the ordinary needs of life, including water. So buy a good water filter.
What bothers me most is how few Americans are likely to have a secluded spot where you can raise a garden, at least a few chickens, and a dairy goat or cow. I will continue to hold, unless events prove me wrong, that the coming luxury is sustainable supplies of food and energy and the ability to protect them. Most Americans, a recent study shows, couldn’t last a month on the food they have in their houses–and that supposes the government doesn’t confiscate it and bands of thieves don’t break in. The other thing that bothers me is how many of our readers I have come to hold in admiration and affection, men and women of character and skills I would consider “worth feeding” for what you would add to a prepper colony…but all of you live too far away! You know who you are, but for starters…Kristen, Lynne, Suzie, Val, James, Desert Rat, David, Steve, Dukbutt, Michael, Tony, Tex, Bill…and if I weren’t still up at 7:49 a.m. I could probably increase that list easily. Take care of yourselves.
Related posts:
Steven Foste says:
May 19th, 2010
4:44 pm
Lady Traynham,
Awsome article, Chickory, yuck I do love my coffee. I have a can marked to open in a year to see if it actually stores well. I have not been watching Craigs list lately, Saw a nice 4 wheel drive 3/4 ton GMC a few weeks ago at a nice price, It was gone the next day,Really- a 26 foot motor home for 2600 dollars, do they actually run and work? I will start looking.
OK your thoughts, been thinking about buying a mini contract of wheat of 1000 bushel on futures market out as far as 2013 as a store of wealth against inflation rather than gold, your thoughts?
Can I come to visit in Texas for a day? Discuss these issures face to face, I think I would need months of preparation for a visit with Linda the ultimate prepper.
Also Desertrat wrote something about utilizing sch C of the IRS code and understanding it to help in making a living and building wealth, I need more help understanding Rat, I understand the basics but making real use of it is something else.
Keep the faith, at least faith in yourself and pepparation, and embrace the hope that things will change. Of course I “hope” to win the lottery to. Problem is I haven’t bought a ticket in 6 months or so.
Steve
Steven Foste says:
May 19th, 2010
4:50 pm
OH, buy the way, that contract for wheat, my plan would be to take delivery, unless of course wheat went to 9.00 again. If it went to $3.00 I would just take the loss and still take the wheat.
Desertrat says:
May 19th, 2010
6:47 pm
The US has never seen its currency go to zero value. Many European countries have. That’s why a metal detector would beep in the back yard of many a house in rural France.
If the present policies of governmental spending continue, there are good odds of a return to at least the Carter era of inflation. Let’s hope that the potential for an even worse situation proves out to not happen. We sure don’t need a Weimar Germany, much less a Zimbabwe.
If the buying power of the currency goes all to garbage, there will continue to be those who will do business. Sure, barter, but many knowledgeable people will happily accept “real” money–intrinsic value coins. Initial values will be “by guess and by gosh”, but a system will evolve. A few thousand years of human history says that will be the case.
All of Linda’s other preps and caveats apply…
One thing that’s not all that commonly mentioned is to lay in surplus quantities of various items specifically for barter. If some necessary thingummy breaks, it would be nice to be able to trade for a replacement without dipping into your “main stash”.
‘Rat
David Franklin says:
May 19th, 2010
7:05 pm
With respect to all above, the United States does NOT currently have a currency to its name. The last time Notes of the United States circulated was for a very short period of time during and after the JFK assassination. At the top of each paper note were the words, “UNITED STATES NOTE”.
Today, the notes of a private corporation circulate in the place of what should still be United States Notes. These non-notes read at the top: FEDERAL RESERVE NOTE. As they carry the name of a private corporation possessing sovereign immunity, they are the PROPERTY OF THE FEDERAL RESERVE BANK CORPORATION!, not the United States Treasury!
The REAL WEALTH value of Federal Reserve Notes is only that of mere paper and ink. That people accept them otherwise has more to do with the fact that Congress has “declared” them to be Legal Tender. Legal Tender means you MUST surrender your REAL WEALTH for mere paper, OR…we will put you in jail! Being forced to depart with Real Wealth you labored so hard to acquire, and accept in return mere paper IS…GRAND LARCENY THEFT on a National and international scale.
So……., go ahead, continue to create, invent, to save and to labor to produce Real Wealth from resources, and every Thing you produce will be taken from you at the point of the barrel of the LEGAL TENDER “GUN” Law. Before these past two decades, this theft was facilitated with the paper currency of the private central bank.
Now, the theft of all your Real Wealth takes place with computer blips, mere digits, which requires NO LABOR, NO OFFSETTING PRODUCTION of any REAL WEALTH.
But very different than the former paper of the King, today’s “KING” creates and confiscates AT THE SPEED OF LIGHT!
Welcome to the Modern Digital Age of Debt Bondage Slavery!
Linda Brady Traynham says:
May 19th, 2010
8:50 pm
Steve…define “take delivery!” I suppose you would have a sale lined up, but a thousand bushels of wheat occupies an enormous amount of space and has to be stored in very specific (and expensive) conditions. What does the contract cost? Sounds like you may be on to something.
Linda Brady Traynham says:
May 19th, 2010
8:50 pm
I’ve already answered Steve’s first query privately, and the answer was “No, you can’t come for a day! Stay at least a week!”
Linda Brady Traynham says:
May 19th, 2010
8:53 pm
Yo, Rat: Barter items are BIG on my list, and so is a good supply of replacement parts and fluids for your vehicle, washing machine, and so forth. We’re visiting in SC, so I have to grab the computer when I’m not being entertained! Steve had a question about something you wrote on taxes I haven’t seen yet. If we ask nicely would you tell us more, maybe turn it into an article? Hug, Linda
Linda Brady Traynham says:
May 19th, 2010
8:55 pm
Dave, you little bundle of sunshine…my eyes are gritty and this will have to wait until tomorrow. Having fun, you come visit to. What fun if you, Steve, Val, Lynne, Essie and th’ Rat (and several others, blink grit away) all came!
lynne says:
May 19th, 2010
9:49 pm
I have a heck of a time convincing folks about those little bits of paper with dead guys on it are nothing more than paper with pictures of dead guys on it.
@ Steve I have a friend that bought a ton of corn for his start on prep. For himself and some of his critters.
I got a nice little 1976 24 foot RV for $3100.00 that had new appliances .
On saving money….
You can wax your own cheese. I got a pound of Cheese wax and have done up 9 pounds so far that I got for $2.00 a pound.
Go to a local Feed Mill. I bought 150 pounds of FEED grain for less than $20.00. Know how to use whole grains, I make my own breads and stuff and have 2 back up ovens 1 Propane and I hope to get Solar Oven this year. Plus Wheat and barley make great sprouts. Fresh vegies year round!!
I like Pickling salt for my cures ond corning meat. Remember the feds are creating the Salt Police. It’s time to learn how to make your own bacon and hams.
I love coffee, but I find that roasted coffee does age quickly. I’m looking into green coffee beans to store. The beans last along time and they are easy to roast. I use a “French Press” as my Lo-tech coffee maker. It takes less fuel to boil water, than to run a percolator.
I have been building a “Barter Box” for the future economy.
If you use it store it!!
lynne says:
May 19th, 2010
9:54 pm
Sorry I wanted to add this great cookbook from 1917
http://chestofbooks.com/food/recipes/Allen-Cook-Book/index.html
All kinds of great info.
Oldmanriver says:
May 20th, 2010
6:07 am
Steve,
I dont recommend buying the contract of wheat. Although it would be interesting to see what happens when someone actually takes delivery of a contract. I dont know that I know any person or business that has actually ever taken delivery. Im not positive but I dont think the seller is required to deliver it to your house. The wheat would not be in bags its going to be dumped in a big pile. Unless you have a bin and an auger its just going to be a big mess and you are going loose a lot of wheat to the weather. What are you going to do with the wheat once you have it? 1000 bu of wheat is going to last you the rest of your life. Its not going to have that long of a shelf life stored in a bulk bin. Remember this little tidbit when dealing with the commodity market. 80% of all trades loose money. You have better odds in a casino. There is no guarantee that the price of wheat is going to go up if we have high inflation. In the 80s when we had high inflation grain prices didnt reflect that or at least not that I can remember right off hand.
Oldmanriver says:
May 20th, 2010
6:14 am
I agree with Lynn, if you want a physical commodity go to a feed store or an elevator. Buy it in bags or some other easily handled unit. Most feed stores can bag it for you. The wheat will have to be cleaned. Seed cleaners are soemthing folks may want to add to their prep stores. Im not even sure if you can buy small ones anymore, perhaps in an amish supply catalog or something like that. Useful for getting weed seeds out as well as dead bugs, mouse droppings etc. Buy an amount of wheat that you can actually handle and use. 1000 bu of wheat is 60000 lbs.
Essie Feldhacher says:
May 20th, 2010
6:20 am
Linda, dear, WHAT an absolutely “DELICIOUS” article…to those of us who like to eat. And Lynne, my Amish Cookbooks are the most used on my shelves. Full of practical advice for preppers than go way beyond mere how-to-cook-it recipes. The garden is keeping us busy – already. And on May 10th we had the first meal of ‘new red potatoes” creamed with fresh peas (frozen from last year.) That’s a record for us for eating new potatoes in the Midwest…!
Desertrat says:
May 20th, 2010
6:22 am
Taxes? I don’t have enough for an article, but there are bits and pieces which can be helpful.
First off, if you haven’t, already, check out IRS’s Schedule C for sole proprietorships. The legal phrase when considering deductions is “creative interpretation”–which is not the same as lying or cheating. My sports car racing was set up as a business, along with my ranch. Later on, I was a “developer” and was improving land for resale in small tracts–whether or not any tracts were sold.
Got an RV? On a separate tract of land? If it’s financed, it’s a second home, and the interest is deductible. If it’s in a recreation area and is rented out, any cost of travel there for inspection or other business is a deductible expense, even if you go fishing while you’re there. (I once had an old rundown rent house in Port Aransas.) Maintenance costs are deductible as you do those minor upgrades which make resale profitable.
I’ve always operated in penny-ante fashion. A little bit here, a little bit there–and if you don’t piddle it away, it adds up over time. And compound interest is your friend.
Nuff of that.
Paper money? As long as Mr. Storekeeper has full faith in the US credit, I’ll keep on using it. My lack of faith is irrelevant.
My overall attitude? Prep for gloom’n'doom. Live as though it ain’t gonna happen. No ulcers, that way.
‘Rat
Steve Foste says:
May 20th, 2010
8:44 am
Ok folks, Delivery would be in the form of a warehouse reciept for the commodity stored in and approved warehouse, at which point you would begin paying storag fees. The margin requirement currently for one contract mini wheat is 200 dollars with a 200 dollar maintenance fee, and of couse margin calls when price goes against you. A person can exercise his contract at any time and take delivery. It is a high risk game, but it is not a zero sum game.
It was just a though I had rather than buying gold, and yes a 1000 bushel contract is 60,000 lbs of wheat. I don’t need it in my backyard.
lynne says:
May 20th, 2010
8:52 am
http://sustainableseedsystems.wsu.edu/nicheMarket/smallScaleThreshing.html
Small seed cleaners you can build for wheat or beans.
admin says:
May 20th, 2010
9:44 am
Hey Essie! When do I get to publish your next article?
admin says:
May 20th, 2010
9:46 am
Nailed it in one! A great book for those who can find it or check it out is “The Creature From Jekyll Island”. If you’re not already angry about how our banking system is run you will be after reading this book.
Steve Foste says:
May 20th, 2010
10:17 am
Thanks for all the info folks, I love W&G, and many other newsletters and articals, but I my money the best info I am getting on living day to day is coming through The Texas Ring, Thanks for the info and thoughts Rat, Nice to see your post essie, when do you get us another article, Old man river thanks for the reply, it is well taken, Lynne great additon to lindas artical, and David you write with the super intellegent
Desertrat says:
May 20th, 2010
10:47 am
As far as a prep situation with wheat, rather than 30 tons I think I’d rather be able to grow my own. Back some 30 years ago, a local survivalist had several five-gallon sealed buckets of red wheat, which had had the air replaced by nitrogen before sealing.
Oldmanriver says:
May 20th, 2010
1:09 pm
Desertrat,
Right that would be better, I would go one further and put away seed wheat. The wheat would be cleaner (no weed seeds) and tested for germination. Seed wheat should have a higher germination rate than bin run. Also take a look at seeding rates and the amount of area that you want to seed. Usually you seed wheat at the rate of about 2 bu per acre with an expected yield of 60-80 using modern production practices. That will guide you how much you need to store. Wheat is 60 lbs per bu.
Oldmanriver says:
May 20th, 2010
1:52 pm
Steve,
Thinking about using a commodity as a inflation hedge. Oil or some dollar denominated commodity would be the best bet. Buy as far out as you can. I would not take delivery. I would just roll the expiring contract into the next month or something like that or just sell it back before it expires if you can make some money. Oil would be my choice as it moves inversely to the dollar and it reliably moves when the value of the dollar moves. I would want to make sure that I had alot of money ready to cover margin if you start getting calls. I have only played with grains a very little bit so I am in no way an expert. I just know that I was not smart enough or wealthy enough to swim in those waters. I would think that now is when you would want to be doing something like that as the dollar is fairly strong right now.
Oldmanriver says:
May 20th, 2010
2:04 pm
Lynn
Thanks for the link on the seed cleaner. Here is the one I was thinking of. My family has one just like this that I have used in the past. Its basically the same as the one you showed except you can adjust the amount of air as well as using different screens. It does a very good job. I used it several times to clean bin run oats for planting.
http://www.saveseeds.org/tools/clipper.html
lynne says:
May 20th, 2010
4:14 pm
What I like about the ring is I can throw something up and have you all trouble shoot it.
We come from all political/mindsets, but when it comes down to basics and the home front we all tend to want the same things. A descent living and our children will do as good or better than we did.
It’s not about politics any more FEMA and DHS are a bunch of goombas for keeping us safe.
Not because they won’t do it, but they can’t do it . We have seen it happen time after time. Look at the storms, yes the Government will give you some money after the fact a month to 3 months later. I don’t need food or water in 30 days, I need it today.
I’m sure big sis Nepalitano will say the system worked. But all the people died before we could help them. Hell I prep because I know the morons that are in charge.
Gosh after watching the floods from the Dakotas to Georgia to Nashville. The snow storms in D.C. where the FEMA web sat idle for 6 days and the oil rig blowup. I’m not feeling a lot of confidence in the feds.
My kids may die, my family may die. It’s not politics any more. It’s taking care of my own. I’ll prep.
lynne says:
May 20th, 2010
6:21 pm
Well got the bunnies I guess I could look into some pygmy goats….
Linda my RV needs a good test I could come down and visit you in Texas. I just need gas to come down a bit in price. PlusI could run and bring all the critters got another invite from a marine in Arkansas.
lynne says:
May 20th, 2010
10:12 pm
Linda,
I have met so many great folks and learn so much from them. I turned several folks onto W&G and you all at the Texas ring. Wow it is so great I get to learn from folks that do, and not just theory.
Mom is coming along but it’s slow she is a recovering democrat. LOL
I got her on Beck, the internet and blogs. She’s buying silver and preping with me as well.
I’m up to 18+ months of food/household goods, 4+ months of potable water, getting my bug out vehicle up running and stocked. Bunnies, a garden and learrning to spin wool and weave. Silver to pay for 4 months or more of my bills. Wow, life is going pretty damn good. Sometimes I forget how far I have come in less than 18 months and all done for under $18,000 per year. A bit of gloating and a lot of wonder because I would have said it was impossible to do all that in that time frame for that amount of money.
But I’m always adding and building on my investment in me.
Kurt says:
May 21st, 2010
1:16 am
Love the article, picked up a few ideas even.
Steve, question: what if there is no commodities market in any recognizable form left by 2013? How would you even get delivery? What’s coming will be far worse than most people here can even imagine, and that’s saying something.
I think we should all invade Lynne’s place for a day to meet
Steven Foste says:
May 21st, 2010
5:08 am
I agree Kurt, It was just a thought, mostly I think that all my life I have wanted to trade commodities, but alas, I understood the risk and couldn’t afford it, It is so enticieing, but you are all right it is just better to buy about 250 lb of wheat in nitrogen sealed containers and a grinder, no risk there,
It really comes down to keeping the priorities straight for me, and those are debt free living, preparation for short and long term living, and living life as if theses things are just a glitch but being prepared for the future. I am still trying to build for my retirement as best we can in this economic climate, what will happen in the future I don’t know, but am trying to get to the point where if need be I can feed myself and be resonable self sufficent.
I have talked with Linda about purchasing and living in motorhome for instant mobility, plus no mortgage or interest payments, and no rent to the landlord, rent for a parking space, and then accumulate the savings to buy that piece of property to survive on. Am working on it will keep ya all informed.
What state is Lynne in?
Desertrat says:
May 21st, 2010
10:10 am
RV World: Two choices. Either a self-propelled RV or a travel trailer. With the first, a rather small, lightweight all-wheel drive vehicle on a towed trailer is a Good Thing. You get where you want to go, you don’t want to keep having to drive around in a gas hog.
With a travel trailer, there is always the compromise among sizes of both the trailer and the tow vehicle. Big trailer = big tow vehicle. Small trailer = medium tow vehicle but less in the way of creature comfort and stowage.
One option if the aim is to go from Point A to Point B and stay for a lengthy period: Have a large travel trailer and rent a tow vehicle for the move. No need to own a large tow vehicle.
Desertrat says:
May 21st, 2010
10:12 am
Addendum: I am told that FEMA is selling new, unused post-Katrina travel trailers as well as mobile homes. I’ve done no followup, so best luck…
Desertrat says:
May 21st, 2010
5:41 pm
Back to money and gold and such: Here’s some worthwhile think-stuff from the folks at the Doug Casey group:
http://www.caseyresearch.com/displayCdd.php?id=435
Kurt says:
May 21st, 2010
6:51 pm
Hey Rat, ifnya do research out the FEMA trailers and it does pan out, or come across more info, give us an update will ya? I’m not even sure where to begin looking for info on that one lol.
Lynne says:
May 22nd, 2010
11:49 pm
I live in SW Idaho folks. Though I’m not a Mormon, the LDS church is big here they even have a cannery about 20 miles from my house. They still let anyone use it. Some of the LDS canneries are going Mormon only, because of all the folks getting prepped they got swamped.
I like how the Mormons do the basics on prep and then share the food calculators with all., but I’m adding all the time. I have 12 pounds of popcorn, just got some Ritz crackers and Fritos vacuumed packed in some Mason jars. I did a test in Nov. of last year and I really missed having some snacks.
I just got a great buy on Provolone cheese I hope to get waxed tomorrow. Just $2.29 a pound. That gets me over 6 months worth of cheese for the average American. Already waxed up 9 # for myself and Mom.
I heard that a lot of the FEMA trailers had a chemical problem with formaldehyde out gassing.
For an RV I’d recommend 1 that is 1980 or older. It can withstand EMP with some simple repairs(Distribtor cap, points, plugs and battery) Simple to work on, no need for a diagnostic computer. Is EMP likely no, but ask Nashville about 500 year floods being likely.
Usually low miles compared to a cars or pickups of that age.
I’m working on a beer/wine/soda setup and ingredients next, as well as corning beef and salting fish. I should get my Loom next month. We will see how it works out. If not Mom is good at knitting so I have a back up plan. More bunny hides to tan or at least to stretch and scrape. Maybe rabbit jerky next…
As Linda says you may be able to survive on the food you store. But the whole point is to thrive. I don’t think anyone started an IRA or investing just to survive. You invest now so you can play later. Prep is just the same. Hell I’m not prepping so I can suffer I’m prepping so I can really live. I’m buying Low and eating high. I can always ration/save if needed. But I must have it on hand so it is my choice.
One thing about prepping is it can keep you busy with projects. The more you learn the more you realize you don’t know and the more there is to learn.
Desertrat says:
May 23rd, 2010
8:50 am
Dealing with formaldehyde outgassing is easy: Leave the windows and doors open as much as possible for that first month or two. Put some sort of fan in a window, blowing out. It’s not a forever thing.
Kurt says:
May 23rd, 2010
4:10 pm
I probably would have never thought of waxing cheese. How long does it last if you do that, and how do you do it? Just dip it in wax? Any special type of wax?
Next stupid question is Lynne, how do I talk you into writing up some food prep for storage articles for me? Lol. I want to publish them on one of my sites.
Lynne says:
May 24th, 2010
11:26 am
@ Kurt I think the wax cheese will be good for at least a year. But I haven’t tested it yet so I can’t confirm this yet. For the actual waxing I use a natural hair brush and paint the wax on, but the cheese can be dipped in as well. Probably whatever workks best for you.
But I’d be happy to help out.
As far as writting articles, I’m not a very good writer. Linda is trying to help me get better, between all the other projects she has going.
You could go to preparednesspro.com which is where I get a lot of my info for prep. Kellene doesn’t mind you quoting her stuff as long as you give her credit. I consider a her my prep guru, she showed me the ideas on waxing cheese and the canning stuff.
Kurt says:
May 24th, 2010
9:18 pm
Thanks for the tip Lynne.
I would still love to publish some articles from you. One thing I’ve learned is that the Bible is right on everything, including there is safety in a multitude of counselors. The more people who put their heads together and output ideas on this sort of thing, the better I like it. I have been mulling this subject over for literally decades now, and I still learn new ideas in here. And the more ways we try to get the word out, the better I like it as well. This country is in trouble, and very few even see what’s happening. I want to help change that.
Lynne says:
May 25th, 2010
3:18 pm
@Kurt I signed up to your site. I do have a couple of shopping lists and some ideas for starting on self-relience that are pretty cheap. Some saving money Ideas, and some attitudes that are needed to be a survivor. Plus to take it up a level to thriving.
I to believe in Biblical knowledge. Or as my Mom calls it the owner’s manual for life.
Kurt says:
May 25th, 2010
4:59 pm
I saw that. Thanks! I delegated blogging privs to ya, just now, before checking in here lol. The blogging script is a work in progress, and it is expected to get changed quite a bit before it’s finished. If you prefer writing articles I can put them in through the admin panel for now. I’ve sent you my email address through a PM there. That’s one thing this site is missing, and I wish it had, a PM system. So many good thinking people in here that it might be nice to be able to send messages to when needed.
Lynne says:
May 25th, 2010
5:10 pm
Yes, I know I wish I had an IM on a site (not mine) because of all the great info. It’s a bit humbleing for me I’m used to being the smartest person in the room. Then I get crushed for my pretentions. But I also learn. If I wasn’t such a raving egomaniac I might be hurt.
Lynne says:
May 25th, 2010
5:39 pm
Well we have had a bit of luck on the PM system… But most folks don’t use it in not data familiar for the internet. Always take few to lead the way.
Lynne says:
May 25th, 2010
6:10 pm
Don’t you folks know you are incabable of taking care of your self? You need a person to tell you how to live and how to build. He is also offering tax credits. Obamanation
Lynne says:
May 25th, 2010
9:10 pm
Well Kurt I hope we can make it work. Everybody we get is one less target and someone we can help. I know that sounds crass but it is reality. I’ll give them a chance at skills most won’t.
Kurt says:
May 26th, 2010
4:41 am
About all we can do is offer them, and pray. The Lord makes up the difference.
I have to think though that doing so can make a difference. If it could not, why would He want us to do it? Hopefully, between us all, we can put something up here, there, and many other places, some of which might help somebody.
Lynne says:
May 27th, 2010
7:12 pm
Well I do belong to and post in different forums. I always seem to get from God the things I need not always what I want. I found a place today that has planter boxes, real wood may need a coat of stain for protection but at a great price and I can put it on layaway. I’m not special but things seem to be coming together for me. I’m not sure why but who am I to argue with the cosmos or omnipotence. I may only be proof that God can use any vessel to further his program. Perhaps that is why I have no patience or understanding for folks that won’t start prepping. I don’t know that I will succeed. But if I don’t try I am doomed to fail.
Oldmanriver says:
May 28th, 2010
9:33 am
Lynne,
You also have to remember that God has different plans for different people. Perhaps he wants you to prep and others he wants to do something else. We all have a purpose on this earth. Even people we disagree with. Perhaps they are fullfilling their purpose. Who knows
Kurt says:
May 28th, 2010
12:11 pm
Agreed Oldman. The Lord seems to have laid it on several people’s heart to store a month’s food. And He Himself gave that period of time, a month. Others He has not laid it on their hearts to store at all. While others are more like Joseph, store a huge amount.
I also know that there is somebody out there who He seems to want anointed as the intercessor for a good portion of the US for what is coming. And if they are found and anointed, we can hope for more people to survive that would not otherwise. I feel sorry for that person though, their life is probably going to be excruciatingly rough. But the point is, the Lord has called different people to different things. If all were an eye, where would the hearing be?
angie says:
May 30th, 2010
7:18 am
Hello all…I was fortunate to get a visit from the one and only “linda” for about 10 days.She and my father in law taught us so many things as well as showing us ways to be prepared for crisis.I can safely say that we have began to think more about survival (should things go haywire).Most importantly…we have 2 gardens that are growing rapidly and we get the joy of picking something everyday.However,to get a fine person like Linda…well as she would say “it takes a long long while to grow one”.
Lynne says:
May 30th, 2010
5:51 pm
You guys are probably right and if nothing else it is a test for me to show charity and a “servant’s heart”. Darn it
oldmanriver says:
May 30th, 2010
5:58 pm
Lynne
I dont know that Im right, but just looking back on history everyone has a part to play. Im still trying to figure out what mine is. Just have to have patience with others 
Kurt says:
May 30th, 2010
7:29 pm
Lynne, I would not worry bout it. I would bet dollars to doughnuts that you’ve done better at it than myself. I think I understand what Paul meant when he said that this is a true saying and worthy of all acceptance, that Jesus Christ came into the world to save sinners, of whom I am chief. Me thinks I have knocked Paul off that throne and planted my own behind on it lol.
Patience oldman? What is this patience you speak of? Are you referring to the patients a doctor would have? Fraid I don’t do medicine so I wouldn’t have any :p
Lynne says:
May 30th, 2010
9:47 pm
I’m reminded of what my Mom says “Oh God give me patience, and I want it write now.”
Linda Brady Traynham says:
May 31st, 2010
5:37 pm
Delighted laughter. What wonderful times you all had while I was off for nearly two weeks, missing all of you, but getting hurt puppy looks when I gasped I really had to look at e-mail instead of being happy company all day and until midnight. Argh…I gained nearly ten pounds.
“Such as I have I give unto you,” as Peter said at the Gate Beautiful, and what I have lots of is enthusiasm, words, love, and goats’ milk. Lynne–and other regulars–I would adore having you (singular or plural) come visit. Lynne, if you head this way, Michael lives in Utah, also, somewhere about half the way down the state towards the western border. Wouldn’t it be glorious if we could put together our own convention with seminars? I lost track long ago, but I have at least seven or eight motor homes and travel trailers, maybe ten, and Charles could cobble together some way to provide water and power to all of them. I have one empty trailer slot if someone drove one down. For the record, it is one of the more expensive, but the least possible amount of space 2 people who really love each other can live in comfortably is La Casita. I use that as an example of why for emergencies you don’t need a 40′ Reba McEntire bus. ROFL…the tiny Casita will cost you twice what we paid for our 40′ Greyhound motor home. When we’re talking disaster, a movable roof over your head that will store your supplies will be more valuable than Harry Winston diamond earrings for a quarter of a million. I have a friend who would surely teach cheesemaking and advise on gardening, and to get to know bottle-raised goats is to love them. If I could give you each just two things (I hate being “poor.” Actually, Charles and I consider ourselves among the wealthiest people in the world because we truly love each other, never argue about anything, and have enough exciting projects to keep us busy for at least twenty years. Money? Well…still have a little, plus pensions. Some day no one much will have those and that’s when our preparations will be real wealth.) they would be a motor home and a pregnant dairy goat. Kristen would surely tell us how to can meat, and just trying all of these things once would give us a lot more confidence. I know I can can milk but trying to evaporate it struck me as too electricity intensive. I still haven’t gotten knowledge and supplies about herbal remedies. We could learn to construct stills (alcohol will be a great trade good), work on getting me some freezer space by eating lavishly, have a lecture on Bummy Rabbits, and generally have the time of our lives and increase our knowledge. The invitation is open to all of you. Go find an aerial map of 5223 Wilcox Lane, Bryan, Texas, 77808, which is 100 miles from Austin and Houston and about 175 from San Antonio and Dallas/Ft. Worth. It will be increasingly hot until October, probably-but it would do us good to practice old ways, such as going into the woods which tend to be 15 degrees cooler and just putting your feet in a big bucket of water. Charles is off today buying some more farm equipment (it’s addictive) and looking at another horse. We have two man-made lakes you’ll see on the aerial with catfish, bass, perch, and crayfish, and if I have the meat-processing room put together by then we could make deer-wild hog sausage. (Or we could take turns in the kitchen.) Get at least an 1800 watt grinder if you have access to game. I tried 1000 and 1200 and it is just too much work. Has anyone ever made pasta? I have a machine but have never used it. Maybe we can’t work out a convention/vacation but all of you I correspond with privately are welcome any time. Um…Google has recipes for soft drinks made with yeast, but I haven’t gotten to it because we drink sweet iced tea. That should be a good trade good; Coke etc. is too expensive and too bulky to store. We should try grafting to increase our variety of fruit, especially citrus fruits. Mildew Manor is still a disgrace although I have hopes of getting my expansions done shortly. We can fake it! It won’t be Club Med but the company and learning experiences would be terrific. Oh, those free range eggs! One of the hands took 15 doz to the local farmers’ market this week and sold out in almost no time, probably locking in the market until the first frost, when it closes. We have baby peepers all over the place, and should be seeing calves drop any time now. Dress ultra casual, and don’t forget old shoes even though it isn’t likely to rain for quite a while. Lord willing (preferably helping) we should have the big shop completely enclosed and enough AC to make it bearable if not house cool. You can learn to milk (not hard if your hands are bigger than mine; trap and squeeze, don’t pull), drive tractors (piece of cake), learn to shoot if you don’t know how, go fishing, ride if you know how, share in witty, knowledgeable, intelligent conversations, and we could put together a really great list and prioritize. I think it would be the most fun ever, even if all we can manage is “Y’all come to see us when you can.” Hugs, Linda
Lynne says:
June 4th, 2010
12:27 pm
That sounds like a great time Linda. I’d love to to come down, I never milked a critter before. Though I did work cattle as a teenager.
If the gas prices aren’t to bad I maybe able to save up enough for a trip at the end of Sept. 1st part of October.
I learning home made beer. I’ve made few batches that have been pretty good. I am going for a little bigger set up on the beer brewing.
Rebelbrewers.com has some great stuff on Home brewed Beer, wine and soda. I got great service from them when I ordered my Cheese Wax.