Archive for: September, 2010

Gold Climbs to $1,300 on Dollar Concern; Silver at 30-Year High – Bloomberg

We’ve been saying on the podcast for a long time now that this is coming.  Don’t watch the markets, as they are so manipulated that they are deceiving.  Watch the US Dollar Index (USDI) and the price of gold and silver; these are your indicators on where the economy is going.

Now that we’re going to get another batch of printed money from the Federal Reserve, you can almost see hyperinflation on the horizon.

Get ready folks, it’s coming.

Gold Climbs to $1,300 on Dollar Concern; Silver at 30-Year High – Bloomberg

Gold futures rose to a record $1,300 an ounce in New York as investors sought a protection of wealth and an alternative to a weakening dollar. Bullion traded at an all-time in London and silver reached the highest price since 1980.

The dollar headed for a weekly drop against the euro on concern the Federal Reserve is moving closer to boosting debt purchases, while European equities declined. Gold, which usually moves inversely to the greenback, advanced to a record for the fourth day this week. Silver, which is used in industrial applications, headed for a fifth weekly advance in London.

“Gold is showing there is no confidence in the dollar,” said Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva. Recent “data has been showing signs of a troubled economy. That’s why we’ve seen this huge buying for investors as a safe haven.”

Is QE2 finally the economic collapse? – Aug. 11, 2010

Is QE2 finally the economic collapse? – Aug. 11, 2010

The Great Depression. Wall Street in 1987. Japan in 1997. Points of economic collapse are generally crystal clear in the rear-view mirror. Professional politicians in Japan have been telling stories for 20 years as to why they can prevent economic stagnation. In the US, the storytelling started in 2007. All the while, stock market and real-estate prices have repeatedly rallied to lower-highs, then collapsed again, to lower-lows.

Markets trade on expectations. Yesterday’s zig-zag in the S&P 500 was unlike most sleepy August trading days in America. That’s because the ‘government is good’ crowd leaked word that this second round of “quantitative easing,” known as QE2, was coming, and that Ben Bernanke was going to respond to our buy-and-hope begging. (The first round of quantitative easing was the Fed’s unprecedented purchase of agency debt to prop up the housing market, along with credit facilities for big banks, which began in 2008 and ended earlier this year.)

To think that we have institutionalized market expectations to this degree is downright frightening. It seems impossible but true that all rallies start and end with rumors about what Fed Chairman Ben Bernanke, a humble looking man of government, had to say at 2:15 PM EST yesterday afternoon, or any other day he makes a statement.

5-doomsday-scenarios-for-the-us-economy: Personal Finance News from Yahoo! Finance

5-doomsday-scenarios-for-the-us-economy: Personal Finance News from Yahoo! Finance

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Finance SearchFri, Sep 24, 2010, 1:23AM EDT – U.S. Markets open in 8 hrs 7 mins 5 Doomsday Scenarios for the U.S. Economy by Derek Thompson, Daniel Indiviglio Saturday, September 4, 2010

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It’s been a brutal summer for the economy. The housing sector, like a balloon batted in the air one last time by the government credit, resumed its inevitable fall. Economic growth slowed to a lead-footed 1.6 percent, and job growth is even more anemic. Meanwhile, consumers are cranky, the trade gap is gaping.

More from TheAtlantic.com:

• 5 Reasons Why the Economy Will Be Alright, Eventually

• Mapping Troubled Housing Markets

• Despite Unemployment Rising to 9.6%, a Glimmer of Hope?

Most signs point to a slow and steady recovery, but what if the pessimists are right, again? What if the United States isn’t in the slow-lane to recovery,

 

FOXNews.com – In Case of Emergency, Please Remove Your Bra

No, this isn’t a joke… Check it out.

FOXNews.com – In Case of Emergency, Please Remove Your Bra

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Caught in a disaster? You’d better hope you’re wearing the Emergency Bra. Simply unsnap the bright red bra, separate the cups, and slip it over your head — one cup for you, and one for your friend.

 

Motorcycles for the prepper….a few thoughts

I’ve been riding motorcycles, on and off, for 15 years or so. Started with dirt bikes (hey, I was only ten…) and graduated(?) for a short while to street, and then back to dirt. The last bike I had, before this latest sabbatical, was a full race, very custom desert racer. Motor was based off of a 350 Honda, and it was a true frankenbike – scary fast though. At least until I blew a hole in the piston….

Well, after I sold that bike some years back, I’ve always had the urge to get back into them. I bit the bullet a while back and picked up another basic trail bike – a Honda XR400. After searching long and wide, I settled on the 400, and the XR series. One can do pretty much anything with that displacement of engine (even though long street rides can be hard on the rider), and the XR’s have a terrific reliability record. Not to mention they’ve been thoroughly debugged – the basic engine design has been around over 40 years. I purposely steered away from larger displacement XR’s (the 600’s and the 650’s) for a few different reasons.

1 – While they have plenty of power, they’re harder to ride on tight trails, and to muscle over obstacles when one has to. (and if you do the riding I used to do, and hope to do again, yes, you will be dragging the bike over and under stuff. Also up stuff. And down stuff.)
2 – Fuel use – there’s quite a difference between the 600/650 and the 400. Properly set up, the 400 can go much farther on the same amount of fuel.
3 – Steel frames on the 400 are more durable than the aluminum, go faster stuff.
4 – No electric starter, manual kick only.
5 – Lighter weight (see reason #1 above)

There are much more modern bikes out there, that are basically product improved versions of the venerable XR400 – bikes like the Suzuki DRZ series. They’ve got plenty of followers, but being more modern they’re also more complicated. More things to break, and when you get down to it, most riders still can’t use the full capabilities of the old XR – how are they going to use the full capabilities of a more modern bike with more power, etc? It goes both ways of course, some folks love the electric starter (at least until the electrics don’t work), and some are old school like me. I also prefer air cooled over water cooled, and again it comes down to the complexity of the system. Air cooled doesn’t have any worries about radiator hoses, delicate radiators, thermostats, water pumps and all the associated worries that come with that system. Air cooled, however, does take a different maintenance track. Oil changes become more critical, and oil quality is more critical.

There’s another common trap out there for folks – the bigger is better trap. It’s not necessarily true, but it’s been pushed for so long that some people have a very hard time getting over it. Get enough to do the job right, but more than that is just a waste. Getting that larger machine, while entertaining, can cost you in the long run. Fuel costs, maintenance costs, storage, initial cost, insurance – it all adds up. Take a look at one of the motorcycles that are used by various military units around the world. You’ll usually find something that’s not that big a displacement (250cc – 400cc or so), but has plenty of capabilities. There’s a reason they’ve gone with that size of bike.

Your basic XR400....

Your basic XR400....

For prepper uses something like this bike is ideal. Properly modified, you can carry enough on it to last a week of camping, and travel a thousand miles. Or more. It’s been done enough that it’s a well proven method, and there are a couple of great forums out there that’ll show you how to do it, and enable you to compare notes with others doing the same thing. One of the best is the ADV Rider site, at www.advrider.com.

Some of the things that are of interest to the motorcycling prepper are the number of rack, pack, and pannier systems that are out there. Not to mention the ways to carry additional fuel, tools, supplies and camping gear. Then there are the guys that have figured out ways to power Ham radio systems off of their bikes, likewise GPS navigation systems, additional lighting, and coffee pots. (yep, gotta have coffee in the morning.)

As for my new bike, I have a few plans for it. I’ll be getting rid of the stock fuel tank and putting on a higher capacity tank, and two additional reserve tanks. It’ll get a larger fairing, both to cut some of the wind at higher speed and to serve as a mounting point and shade for a couple of GPS units. Different seat contour for better long distance comfort, and a larger HID headlight. Some tail light modifications for safety, and then some rack mounts for soft cases. (quick note: I like the soft cases more than the hard cases, reason being that when (not if) you lay it down, the soft cases are much more forgiving on your legs when you crash. I’ve learned that on the Rokon Trailbreaker, same thing applies)

It also strikes me that bikes might actually have been one of the leading reasons I was introduced to preparedness. I’ve always lived, and ridden in the desert, and mostly solo. When you’re doing that it becomes that much more important to be prepared, especially since you can go amazing distances before you know it, on a bike. You can quite literally find yourself in the middle of nowhere, and if you’ve managed to have a bit more of an adventure than you’ve planned on…… I’ll do a few more thoughts on riding and potential bug out issues in other future posts, especially as I ride more and start to remember what I’ve forgotten!

So there are some thoughts on bikes – if you’ve been considering them, or are currently using them, go ahead and shoot out some comments on this blog or on the forum.

-Greg

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