T P TAP Issue #109- February 2009 Issue #109 F e b r uary , 2 0 09 h t t p ://t a p z in e . livejou r n a l . c om / E di t e d by J o h n G al t. - t apzi n e @s a f e - ma i l . n et Table o f Contents static Versus Active Defense - Pg . 2 b y Corcceigh Green Remote Transceiver Operations, Part 1 - P g . 6 b y D r . Noxx Why t h e Dollar Will NOT Collapse - P g . 12 b y Anonymous Pag e 1
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La s t mon t h i n t h es e page s I p o i n t e d o u t a t h r e a t t o r e a d e r s o f t h i s news l e t t e r .
Tha t t h r e a t wa s on e o f b i g government wi t h a Marxi s t agend a . Tha t a r t i c l e wa s mean t t o awaken t h e
r e a d e r s t o a v e r y r e a l t h r e a t t h a t t h e i r r i g h t s a n d way o f life a r e b e i n g v i o l a t ed. I menti oned
t h a t ou t s i d e f o r ce s have been ma s s i n g i n a maneuv e r t o enc i r c l e Ameri c a a n d cu t h e r o f f f r om
wo r l d w i d e r e s our ce s . The wo r s t t h r e a t we f a ce , h owever , i s t h e t h r e a t p o s e d by t hos e wh o a r e
s u ppos e d t o be ou r r e p r e s e n t a tive s i n g overnmen t . Ove r t h e pa s t s ev e r a l admin i s tr a ti on s , (perh ap s
be t t e r r e f e r r e d t o as regime s ) , Ameri c an s have been v i c t i m i z e d as t h e y have been s t e a d i l y
d i v e s t e d f r o m t h e i r Con s ti t u ti on a l Republ i c and con s t itu t i o na l l y g u a r an t e e d Righ t s . Bl ocked f r om
p a r ti c i p a t i n g i n t h e i r government an d b l ocked f r om l awfu l r emedie s Ameri can s mus t n ow cons i d e r
h ow t o d i v o r ce t h emse l v es f r om a n ou t o f con t r o l and u n l a w f u l government .
Seve r a l Ameri can s have a t t emp t e d t o a s s e r t t h e i r con s t itu t i o n a l f r e e d oms and l i v e
a s Ameri can s . Unf o r t u n a t e l y , we have a l l wi t n e s s e d t h e r e s u l t s a s a wra t h f u l governmen t murdered
o r a r r e s t ed ou r n e i g h b o r s an d f e l l ow Ameri c an s a t Wa c o , Te xa s , t h e murder o f Go r d on Kahl , t h e
s u b t e r f u ge o f t h e Bu s h regime a n d t h e f t o f t h e I n d i ana Bapti s t Temple p r o p e r t y , t h e ambus h a n d
murder o f W i l l i a m Coop e r , t h e f a l s e i m p r i s onmen t o f Ch a r l e s Pu cke t t , t h e manhunt f o r St e v e
Ande r s on an d a p l e t h o r a o f o t h e r s . I f we l e a r n on e t h i n g f r om t h es e a c ti on s , i t i s t h a t
governmen t i s q u i t e w i l l i n g t o u s e t h e mo s t b r u t a l weap on s o f war and b l o o d i e s t o f t a c t i cs t o
wage war aga i n s t any i n d i v i d u a l o r g r ou p wh o wi she s t o ex e r c i s e t h e i r Na t u r a l Righ t s under t h e
Con s ti t u tio n a l Republ i c an d a g a i n s t t h e Ameri can p e o p l e .
Now t h a t y ou a r e s t a r i n g t h e t h r e a t i n t h e eye s y ou need t o de c i d e wh a t t o do abou t
i t . Ye s , t h e j ob o f c l e a n i n g up t h i s me s s and d e f e a t i n g an en emy wi t h v a s t l y s u p e r i o r m i l i t a r y
r e s our ce s i s up t o y ou and I . Don ' t s t a rt q u i v e r i n g a n d pu t away t h i s a r ti c l e j u s t y e t ! You need
t o h e a r t h i s . Generati on s o f Ameri can s pa s t hav e a b r oga t ed t h e i r dutie s t o p u n i s h c r i mi na l s
ab u s i n g government o f f i c e o r t o a bo l i s h co r r u p t governmen t en t i r e l y . Now t h e c r i mi n a l s a r e
en t r e n ched i n government an d n o s o l u t i o n o t h e r t h a n f o r c e f u l e v i c ti on i s n ow p o s s i b l e a s
demon s t r a t ed by t h e 2 0 0 8 prima r y e l e c ti on f r a u d s . We a r e n ow f a c i n g a c r i mi n a l regime t h a t i s s o
compl e t e l y Marxi s t t h a t t h i s gene r a ti on w i l l e i t h e r ri s e up and abo l i s h i t o r ou r c h i l d r e n w i l l
l i v e a s s l av es un til t h e i n e v i t a b l e co l l a ps e o f t h e Ameri c an Marx i s t Empir e .
Now , i t ' s OK t o be a f r a i d . The kn owledge t h a t y our s i s t h e burden t o f a ce s uc h a
s e e mi n g l y un s t o p p a b l e enemy f o r ce and d e f e a t i t i s , a t f i r s t , s omewh a t ov e r wh e l mi n g. The t hou g h t
o f kn o c k i n g head s wi t h a t a n k, h e l i c op t e r gu n s h i p o r an t h r a x c a n t e r r o r i z e n e a r l y anyone i n t o
i n a c ti on . Fo r t u n a t e l y , we c a n s e e t h i s t h r e a t comi ng a t u s and w h i l e i t i s a v e r y f o r m i d a b l e
t h r e a t , i t ha s a l s o been mo v i n g t o wa r d u s s low l y, g i v i n g u s t i me t o t h i n k an d d e v e l op t a c t i c s t o
d e f e a t i t . Tha t i s wha t I wi s h t o a d d r e s s wi t h t h i s a r ti c l e . While t h e t h r e a t i s fo r mi d a b l e , y ou
c a n s u r v i v e i t and w in ba ck y our f r e e d oms . Do n ot be f r i g h t e n e d i n t o i n a c ti on . I 'm abou t t o
des
c r i b e t oyou wha
t you can
d ot o p r e p a r e t o
s u r v i v eand win
.
Waking up t o t h e t h r e a t wa s y our f i r s t t as k. Co n g r a t u l a ti on s , if y ou a r e s t i l l
r e a d i n g , y ou have a cknowledged t h e t h r e a t and want t o l e a r n t o nega t e i t . Your nex t t a s k i s t o
dev e l op t h e p r o p e r r e s p on s e p o s t u r e t o t h e t h r e a t . I n many m a r t i a l a r t s , s t r a t e g i es u s e d t o
d e f e a t a s i n g l e a t t a c k e r a r e a l s o i n c o r p o r a t e d i n t o l a rg e r m i li t a r y f o r m a t i on s t o d e f e a t enemy
f o r m a t i on s . I n ou r c as e , which i s t h e c as e o f a h a n d f u l o f C i t i z en s and n e i g h b o r s a g a i n s t a
r e n e g a d e , Marx i s t regime f i e l d i n g i n f a n t r y , armo r , a r tillery , a i r p ower , and nav a l a s s e t s , we w i l l
alway s be t h e 9 0 p ound w e a k l i n g on a p l a y g r ound f u l l o f b r u i s e r s . Thi s mean s t h a t we wi l l n o t be
f i e l d i n g l a r g e m i l i t a r y f o r m a t i on s t o d e f e n d ou r Consti t u ti on .
Winzip or 7zip (7zip does not have the annoying nag-ware screen)
Adobe reader ( or foxit, sumatra, or PDF-Xchange (recommended)
putty
WinSCP
Absolute critical software required to remotely administer this system:
UltraVNC
During the installation, select Register UltraVNC as a service, and select Start or Re-Start UltraVNC as a service.
Reboot the system. On a separate system (control station client), connect to the control station server via UltraVNC.
In the properties page, set the default password immediately. This password is required when you attempt to connect to the control
station from a Remote PC. On both the client and the server, in the Admin Properties screen, enable the DSM Plugin: MSRC4Plugin
122.dsm. Don't forget to click "config" and then the "Generate Key" box.
You now have basic RC4 encryption protection for the VNC session. This is required if operating over the Internet however I do not
discuss running VNC or any of the remote access software through a wireless gateway or router and through the Internet in this
installment.
UltraVNC allows you full control over the remote PC. Very handy for updating software and administrative tasks. You can also use it
to control many remote programs, however, you must push and pull audio via some other mechanism.
One last configuration critera worth thinking about is the auto-login and starting up the required programs in the event your computer
reboots or power cycles. I created an operator windows user. Create this user and set the password. Toallow autologon of that
user after a power cycle (useful if the PC is three floors above you) you must edit the registry. It is relatively simple. Click on the
START menu and select Run. Type 'regedit', and press enter. You will not be in the registry editor. By clicking on "keys" in the
lefthand side of the registry, navigate to:
My ComputerlHKEY_LOCAL_MACHINEISOFTWARElMicrosoftIWindows NTICurrentVersionlWinlogon
- Double-Click on the AutoAdminLogon and change the Value data from 0 to 1
- Double-Click on DefaultUserName and change the Value data to the usemame you which to autologin as.- Double-Click on DefaultPassword and change the Value data to the password of the usemame you entered
above (minor security risk here)
- Double-Click on ForceAutoLogon and Change the Value data from 0 to 1
Note: Ifany of the above do not exist, simply right-click on the right pane in an open area and select New, String Value. Enter the
String Value First (Name), then Double-clickon the newly created Value and then Enter the Value data. For example,
AutoAdminLogin would be the Name, and 1 would be the Value data.
Test it out by restarting the computer. You should now be auto-Iogon'ed as the user entered above.
Now that the user can Auto-Logon to windows after a boot session, it is now time to set TeamSpeak Server, TeamSpeak Client and
HamRadioDeluxe to run on startup. We accomplish this by once again editing the registry via regedit.
Again, run regedit and navigate to the following key:
My ComputerlHKEY_LOCAL_MACHINEISOFTWARElMicrosoftIWindowsICurrentVersionIRun
You are going to right-click on the right side pane, select New, then Enter the String Value First (Program name), then enter
HamRadioDeluxe, press Return. Now Double-click on the newly created String Value and type F:lProgram FileslAmateur
RadiolHam Radio DeluxelHamRadioDeluxe.exe
(Note, your Drive Letter may be different.)
Now do the same fa r the athers:Name Value Value Data:
1hI... P 8 tolKIIIb.. theCII'IIm .... _ •. I do not_" " , Ih I ' " .. . l I I IYcolMllnlcell . . - . lheI_lIraJIIh_
~ , n o r t h o collec:llDn 01-' U.......nddu_. ofconBc:lL I In) ' experImonllr tomanllr.11 com""'"c:I..... ...hIllUIofl'lU home..- oncIthonamot_. u11lt¥ouch. t:pdu""or_rkATAU.Tlt.£8 tDwelchlDr_
CDImIu,ikalb.an....... When l'IlU . . . . . lhdd P8r1Y__ to_P l ' I lU '_ COIMIJn_. . . . l'IlUdo notknowIIfIh whamyoII" CDImIu.....I b . I . being_ or_l id.
For lh l l . . - . 1MJnIp&ekc1_IYW. IP-Sourd• ..-.:I_ng _ perllH:llyfor ~ Y O I .. COIMIJn__ l1li
UnlDrlul"Mtll)\m o e t o f _ prIVIWIIII b anly__ ..-. eourdd_ 01. dmo.H_. JIIII meyc:anIVJ"'_pr lV l lmI b ... opec:IIIc _ eou n- ..menyUSB
__lheI ...."OIIY" htltho USB!lui . . . . _Iy
corI\glnd. UnIDrIueIeIy I I . d l l l c u ~ b __ lhIl lUput.1IHl " " , ,_n rlthe lII*dlll l • to rnx t1eftn" ouIputIIraJIIh 1IHl d e l l u ~ . . . .ut 10 jeck. TliI I••mojlrplObiom _ . . . . . . . PC 1 b ' l n I n _ . . . . .Ib . . For 10_l1 l i .
~ nomare01 e plObiom ItMn l id h. roomIIfIh__ ,. . . . .on an c o n c u ~Youwl i.-__•ormlcrophana end_ 1 1 ' . .1 ,b_1IHl_ fIroc:IIonIIl\II 01_ CMop__. . g_1b,mlcrophone _ .... end I I I ..........entb pi h ......lIl1d__ Irm theI.......... J 1b'_._ checka
l/nfQrIul"Mtll)\ l'IlUCIIn anyUM..-._n.. rllP-SOUNl on. Cll'llpullret.-. Irl'llU donotllMd m u b. . . . . .on
rum rrUIeMwIIy, then IIP-SOUND•• 1IOOd Cl lna_ fl'llU .....db M n d . _ • _ A u d i o .ThenlI _ I... _ IP-&uKI..... lheI . .ben_. ~ " " " ' ' ' A U . I h I _ ThIl. . l l n o _ I o I l l l ~ l 4 l l o n o t _IUIng _ 1 0 or ' " P.....b-1IlIk. T1I. . _ ~ __ nt, lIIIl'Ilc:IIIlyW.................. wI" ,_ n_lke, ouch
.lI02.1111/W11.
lb _ •• m -.:/I for 1IHl Ive·IP8-vO.57............zIp"._-. end "npeck. . - l tho docI, endnI'Ill'-8oIroll-'<O.57. .
8IILOI. . . . on boIh ........... E JIIII knowwh.1IHlP_. 01 boIh nw:hIn..
On 1IHlControl SIIIlIan _
_rVrt c:l1ck anthe IP-8OUNO boK1IIIIl1IM" .... _ T O O L S, PROPERTIES._UndIr&lund,_tho &luna _ ..__ 10theb. . . . . . . . l'IlU_ toc o _ .
Comeet a set01 s p e a k l I ~ to the audo ouIputJack, (fOr now)
- Clck on Test Sot.rId. U8eyair ~ combhllllon IDMttlllO Sound l I i I l ..d till MIcrophonI ~ p u t GaIn. WhIn do"" c1ckTest Sound a_nd tm I klllnnhllll
- SlIIct the oodleYOuwish to u. . . Isuggll/. UIIIng the GSM 8Kkl ttart.
- ..1IcttheACCESS lib, llnd clickonAuto-Arwwlr.- Prll8I OK, to c1_the wlndcJw.
On till Control stalIon C11llnt:
- RIght Click on the IP-SOUtc) C11llntwindow (thoukl III blackwindow h CllrIIIr of appllc8llon box.- SlIIctAdd
- EnIIrtlll IPAdd"'" of the Control SbIIIon S8Mlr In the IP lIdcI"," box.
- EnIIr II Nlmlllortllis box( llikil toU81theMllk8t'Modlll dthe tnIlWCll1Yw)
- Clck onAlld, then CIo8I.
- Double-Clckon tIIlllllWIy CI'IlII8cI Entry.
Wr;z;mmI0 0 1
OYIra tl8ndllIll802.3TwItI8d P 8 ~ 1 l I LANtill fOIlowhgPlrfOllI8Iell_ IIlllatUl*lln kills:
elcome Message:asement Te"",Speak ser ver for Stre arni:>;J Rado's
1a I rnSpeak_ dlMlloped fo'DI'Ill'IB-pn_1Il I 1 I P k l ~ _Ill- . _for l Iu:Ic:BIpu-. It _ -.gll l ld 10 bIl..-y 10
. . . . and 10 ql.lokly pas ." " . .1Ion _ • ...-1 oI'_",,,ltios. Thll151rUrw1hg. becBu... <lIhermm:hI.-an ya i r LAN canJain • r::hIwI .... 10 manlar ca n1eat1o... I I ImlA l_ t1- I prIl1'l5r1y UlllIToI8mSpeek farmyIn\iIradIIIeremota1nI. . . .1118.
~ I n m y . . - .TeamlIpeek Iii OOfI1lrl5itd dtwo CCIiI1lDI'IIIlii, a cl5IIl and ••.-. n,. • .- Qln a c t u I I I ~ bIimllt\llild anywhereDI'I}OJ' '*-"But InIIU ........ple,_w l i mllt\llllle1llMlI lpeak_'DI'I lI Ie CIlnln>l__ . The1llMlIlpeakclem .1 ......1IId Dl'l1IHl
ConInlI _ C11Brrt .. .wei _ af t thoConInlI StlIIIan lleMI•. T1w T_m8pesk .. .. -__ . . . . r I o n I I l I l I ~ Pant far11IIt\InllnI. 1 ' 1 _ 1YJIii: Running a TalIrnSporak clartlWld , - . . " speek_D I ' I I IH l _ (lOIIIpu\Ii'doaa _ with _ ...1Iy
_l I ' runnlng an.PlIl a••_p_ .. I n a l k : e d e l l J l l l l k : l m t ~ ..... au : l1a_ l l lmg m y _"II l I Ie_
""1o.mIIIer PC cIHnHl upIIHl au:lla q U I I I I \ y ~ , - - , I I t I8nc:y, " " m_.1IHlCODEC,. .maI..-d 1Il..,1BId760 III 1000mS.
Far rnaatopontlanoi, III'" '" nota prllbIam far8lda eammunk:lltlDl'lll.
- There should beoneserver listed, with 10of 1. Click on SELECT (onleftside)
- Click. on server S&ttIngs on leftside.
- You maychange theServer Name at this poinl I usually give it the name of the !rmlsoeiver make andmodel. If
this radio has a set role, set itto theagency being
monitored.
- You maychange theServerWeicomeMessage to reIIecI: thefunction of this server- If you wish to pessword protect listening to this server, set theserverPa8sword.
- You mayIncrease ordecrease theserverMaxUsers to limn thenumber of streams this
server will service.
- Makesure you click onSAVE atthe bottom of the acreen when done.
Next weopen theTeamSpeak client and selecl5etlings, then:
- selectS&ttIngs, options
- Under Device, select your sound device connected totheradio you wish audio services
110m.
- selectS&ttIngs, sound s&ttlngs.
- Next, click on Activate local testmode, select a CODEC (Speex 9.3 Kbit is recommended) adjust your sound
input I output levels.- On theControl StaUon server, select Voice AcUvatlon, andset the voice acUvatlon level so that transmission
halls when squelched.
- On theControl Station Client, select Push-to-Telk, andset a button to Push-To-Telk. I suggest you meke ita key
ontheKeypad. (zeroordelaregood choices, as Is the "plus·)
t o th em o r t h e y can bo r r ow bu t d on ' t want t o be cau se t h e y kn ow i t wou ld n o t be pruden t . Thi s i s
why any a t temp t by t h e Fed a t r aw pr i n t i n g o r deb t mone t i z a ti on wi l l f a i l to be s i gn i f i c an t l y
i n f l a ti onary . In fa c t , be cau se o f all t h e l end ing be ing s to p p e d t h e money s u p p l y i s s h r i n k i n g a nd
wou ld con t i n ue t o sh r ink de s p i t e s i gn i f i c a n t raw pr i n t i n g . Essentially , t h e deb t de f l a t i on
p r oblem i s to o b ig t o ba i l .
There fo re t h e r e a l ri sk t o t h e US i s a b on d marke t d i sl oc a t i on t h a t p reven t s t h e
governmen t f r om fund ing e s senti a l s e r v i c e s , e t c . Thi s wi l l b e c a us e d by e x c e s s iv e s p e nd i n g v ia
bo r r owing , wh i c h i s nec e s s a r i l y a c c ompanied by t re a s u r y i s suance a s in t h e fi r s t e xample . Who
buy s ou r t r ea s u r i e s ? Ch i n a a nd Jap an prima r i l y , a l th ough s i gn i f ic an t pur cha se s a re made by o t h e r
f ore ign entitie s such a s Ru s si a , Eur ope , and Middle Ea s t e r n compa n i es (a n d ot h e r inve s tmen t s ,remember Dubai "s a v i ng" Ci t i g r oup by buying a huge st a k e in i t ) . Th e p r oblem i s t ha t , a s US
demand co l l ap se s and we s to p buying Chi com c r a p, t h e y n o l onge r run a s u r p l u s which mean s t h e y
d on ' t have a n y more money t o buy more t r eas u r i es . Wi th o i l p r i ce s s u b 50 , Ru s s ia ha s n o s u r p l u s .
The re s t o f th e wor l d i s go in g to be f or ced to s to p buying t r e as u r i es be cau se t h e y wi l l n o l on ger
hav e s u r p l us t o purcha se wi th a nd wi l l ne ed t h e money t h e y d o have t o help t h e i r own
e conomie s / peop le / i n t e r e s t . 2% on t h e TNX i s n o t enough t o en t i c e t h em to buy ou r deb t anymore .
Th e i s sue a t t h i s po in t , if we in sist on spend ing i s th a t a b ond marke t d i s l oca t i on
wi l l oc c u r . Ther e w il l be n o mo re buyer s fo r t re as u r i es a t t h e i r cu r r en t p r i ce (exp ress e d as t h e
in t e r e s t t h e y bear ) . Thi s i s two- fo l d . The more deb t we have t h e grea t e r ou r ri sk o f de f a u l t .
Thi s i s mi t i g a t e d gre a t l y by t h e fa c t t h a t every one e l se i s in a n even wor s e s it u a t io n t han t h e
US , bu t no t comple t e l y . Coup le ou r i nc r ea s i ng r i sk o f de f a u l t wi th t h e i r l a ck o f su rp lus and t h e
on l y way fo r u s to keep s e l l i n g t re as u r i es i s to o f f e r a be t t e r in t e r e s t ra t e . No we all know
wh at happen s when we have a high in t e r e s t ra t e on a c r e d it c a r d o r mor t gage , i t cos t more d o l l a r s
t o s e rv i c e t h e payment s on t h e s ame amou n t of p r i n c i p l e . The s ame t h i n g wi l l happ en t o t h e US i fwe keep sp end ing l i k e mad . A r ap id i nc r ea se in r a t e s i s wha t i s c a l l e d a b on d m ark e t d i s l o ca t i o n .
A b ond mar ket d i sl o c a ti on cou l d v e r y wel l r e s u l t in a s ud d e n s t op in th e a b i l i t y o f
t h e US governmen t to fund i t s e l f . Thi s mean s t h a t all e s sen tial s e rv i c es in c lud ing mi l i t a r y , SS ,
Medi c a re , f ood st amp s , e t c . a r e dramati c a l l y redu ced immedia t e l y . Now t e l l me t h a t wou ldn ' t c a us e
r i o t i n g , coup , c i v i l wa r , e t c . e t c .
MY POINT I S , t h e d o l l a r wi l l n ot co l l a ps e be cau se t h e re s t o f th e wor l d i s in wor s e
s hap e than we a re and all c u r r e nc i es a re r e l a t i ve . I f y ou b e t aga in s t t h e d o l l a r y ou wi l l be
sc r ew e d, e spe c i a l l y in t h e s ho rt-te r m. So , wh at s hou l d we d o?
t h r e a t s .
st i l l a
d i sas t e r ,
Basi c a l l y
Th e fa c t t h a t t h e do l l a r i s n o t go ing t o c o l l ap se d oe s n o t mean t h e r e a re n o t
In f a c t , t h e on ly t h i n g i t means i s t h a t th e d o l l a r i s n o t go ing to c o l l ap se . There i s
high p r obab i l i ty ( I be l i ev e n o t h i ng i s 1 0 0% c e rt a i n) of t e r ro r ist a t t a ck s , na t u r a l
t r a d e war s , c iv i lunre
s t , c i v i l wa r , int e r n a
tiona l
wa r , foo d s hort
a ges ,
e t c , e t c .all t h e s ame t h r e a ts t h a t LMI ' s s e e I s e e , excep t a d o l l a r co l l aps e .
I give a 90 %+ c h a n c e o f an o t h e r depres s ion in t h e US , wi th a 7 0%+ chan ce t h a t i t
wi l l b e wor se t h a n t h e Gr ea t Depre s si on . I f i rmly be l i eve t h a t i t wi l l l ook a l o t more l i k e t h e
Pan i c o f 1 87 3 . You s hou l d l ook i t up some t i me t o s e e wh a t we a re in f or . La s t l y , i f y ou a re
in t e r e s te d r ead up on s u p e r c yc l e and grand - supe r c y c l e K-w ave t h eo r y . There a re c r e d i b l e so u r c es
t h a t be l i e v e we a re in fo r a co r r e c t i on ( i n t e r ms o f e c on omics , weal t h d is t r i b u t i o n , popu l a t i on ,
e t c ) ba ck t o e i t h e r 17 90 ' s o r even t h e 15 th cen t u r y. On e e xamp l e t h a t t i es in t o t h i s i s t h a t i s
Grea t B ri t a i n d oe s de f au l t on i t s deb t (a n d I be l i e ve i t wi l l) , i t wi l l be t h e fi r s t t i me s i nc e
t h e Middle Ag es .
I wi l l
t hems e l v es , foc us i n g
c o l l ap se ; f o cu s ing on
c l o se wi t h a li s t o f
on s p ec if i c t h i n g t h a t
f i nan c i a l mat t e r s .
pruden t a c ti on s a
a re d i f feren t if y ou
pe r s on may t a k e
a re n o t p l ann ing
t o pr epa r e
on a do l l a r
1) Cash : Have enough on hand a t h ome t o cov e r all e xp en se s +10- 20% mor e fo r 3 mon t h s
minimum. Pre f e r ab ly have e nou gh to mat ch y our l ong - t e rm f ood s u pp l y in t e rm s o f dur a ti on.
Keep as much a s p o s s i b l e in s ma l l b i l l s (2 0 and under) . Remember t h a t in t h e a f t e rma th o f
Ka t r i n a many who had c as h on l y had 20 ' s , 5 0 ' s and 1 00 ' s a nd s e l l e r s c ou ld n o t make ch ange
r e ad i l y . There w il l be ban k h o l iday s in ou r fu t u r e . Al s o , i f y ou in si s t on ke eping money
in b ank s a t le a s t move i t t o l oc a l ban k s o r c r e d it un i on s b e cause in mo s t c ases t h e y have
li t tle t o n o exp o su re t o t h e who le s ub - p r i me me s s a n d t h e re s t .
2) Go ld an d ot h e r p re c i ou s me t a l s : Go ld d oe s func ti on d i f f e r e n t l y than o t he r metal s
be cau se i t ' s indus trial u se s a re much more l im i te d t h a n s a y s i lv e r o r pa l l a d i um. I wou l d
adv i se every one to keep a t l e a s t 1 o z go ld and 1 00z s i l v e r pe r p e r s on on h and . Try
and k e ep t h e go ld in 1 /2 0th oz co i ns be cau se i t ' s n o t ea sy t o s p l it a g o ld co i n . I
p r e f e r to k e ep t h i s in Ca n a d i a n i s sue co i ns b e cause I live c lo s e s t t o Ca n a d a t h a n
any o t he r c ount r y . Al so , gene r i c r ound s and bu l l i on a re n ot a s ea s i l y re c ogn ized a s
o f f i c i a l l y min te d co i ns and a re no t l e g a l t e nd e r .
3) Gol d Pa r t #2: Go ld i s n o t a gr e a t h edge aga in s t in f l a ti on . Don ' t be l i e v e me , g o
l ook a t a l ong t e r m c h a r t (g o ba ck a l ong wa y a nd l ook a t t h e who le t h i ng ) . Th e
va s t ma j o r i t y o f li t e r a t u re wri t t en in s u pport o f go ld i s wr i t te n by t hos e wh o s e l lgo ld . Th e s p r e a d b e tween s po t a n d re tail i s b ey ond r e t a rded and d on ' t fo r ge t t he y
ge t y ou comi n g a nd go ing . Mos t re tailer s a r e gouging . Go ld i s h owever , an e x ce l l en t
hedge a ga in s t ge opo l i ti c a l in s t a b i l i ty , so i f t h i nk I s r a e l i s go ing to l eve l Tehran
t h e n by a l l mean s back t h e t r u c k up . Additi ona l ly , remember t h a t dur i ng GD I , go ld
wa s con f i s c a t ed . I t c a n a n d w i l l happen a ga in . Don ' t pu t to o much we a l th in go ld
un l e s s y ou a re REALLY con f i d en t in y our c ac h i n g s k i l l s . La s t l y , if y ou d o buy ma ke
s u r e y ou have physi c a l p o s s e s si on . Thi s a p pl i es t o all p re c i ou s metal s .
4) Ca p it a l Marke t s : Ge t ou t . Run f or t h e H i l l s . Se l l , Se l l, Se l l . No re a l l y I mean
i t . Or i g i n a l l y , t h i s wa s w ri t t en on Janu a ry 9 t h , 20 09. As o f r e v i si on s , i t i s
January 27 th , 2009. Or i g i na l l y I ca l l e d f or 1 0 0 0-1 05 0 on th e SPX, p r obably to p pi n g
somet i me n ea r o r a f t e r " t h e on e" a nnounc es t he p a s sa g e o f h i s st i mu l us plan . I
t h i n k we w i l l b e lu cky t o ge t to 1 0 0 0 a t t h i s p o in t . Use an y r alli e s in t h e c oming
week s t o r a i se cas h and g e t ou t . Thi s a p pl i es t o a l l t y p es o f a ccoun t s , IRA ,
4 01 (k ), e t c . Some t i me in t h e ne x t 1 - 3 mon t h y ou s hou l d be 1 0 0% ou t of any l ong
p osi ti on s . Thi s app l i e s t o b o th equ itie s a n d f ix e d in c ome, wi t h t h e e x cepti on of T
bill s .
5) Re t i r emen t a ccoun t s : Rule #1: St op con t r i b u t i n g r igh t no w , e sp e c i a l l y i f y our
con t r i bu t io n i s no t ma t c hed . For 40 1 (k ) s I f p os s i b l e r o l l -ove r to an IRA . This
way you have more c ontro l ov e r y our money and c a n wi thdraw i t i f y ou l i k e . IRA ' s
con s i d e r an ea r l y wi thdrawa l desp i t e t h e p ena l t i e s and t ax con s e q u e n c e s . Pens ion s
t a k e t h e lump s um i f you have t h e opport u n ity . Remember t h a t Argen t i na con f i s ca te d
all pr i v a t e re t i r emen t ac c oun t s a f t e r t h e y de f a u l te d on t h e i r deb t . Remember t h a t
t h e r e have a l r eady been p r opos a l s by ou r congres s -crit t e r s t o t a k e your 4 01 (k ) and
r o l l i t in to so c i a l s e cu r i t y o r a t l e a s t to d o so wi t h all f u t u r e con t r i bu t i on s .
Th e p lan wa s to p la ce t h em all in governmen t bonds . Hmm , does t h i s n o t fit nea t l y
in t o wha t I t a l k ed ab ou t in t h e f i r s t sec ti on ?
6) Wh a t s hou l d I buy ? F ir s t , y ou s hou l d n ot be ac tive ly t r a d i n g u n l ess y ou a re a
t r a d e r . Se c ond you s hou l d n ot be in s to c k r i gh t now un l e s s y ou a re a t r a d e r . So f or
mo s t people you s hou l d no t be in st oc k pe r i od , s e e #4 ab ove . You s h ou l d b e 1 00% in
Trea su r y B i l l s , unle s s you a r e in t e r e s t ed in # 7 b e l ow . No t e t h a t I s a i d B i l l s and
n o t n o t e s . T - b i l l s hav e ma t u r i t y dura ti ons up t o 9 1 day s . As a con sequen ce t h ey a re
n o t s ub j e c t t o in t e r e s t ra t e r i sk s hou l d t h e r e be a bond marke t d i s l ocati on .
Remember t h a t b on d pr i ce s a re inve r se t o in t e r e s t ra t e change s , un l e s s i t i s held
to matur i t y in which c as e you r e c e ive par . Under no c i rc um st a n c es a re you to buy
l ong - term bonds o f any t y p e unle s s y ou l i k e l o s ing mone y . La s t l y , wh y T-bill s ?
Well , be cau se i t i s t h e le a s t wor s t p la ce t o h ide ba sed on t h e t h eo r y t h a t t h e ROW
i s wor se o f f t h a n t h e US i s . I f t h e US governmen t de fau l t s on i t s ex i s t i n g
ob l iga t i o n s , t h e n y ou wish y ou inve s te d heav i l y in c orrunod it i es l i k e b ra s s and l e ad .