@eff I wrote a program called evdisk that creates a directory with a large file that contains a LUKS file system that can be mounted using the loopback device. The key for that file system is encrypted with GPG and the GPG file is stored in the same directory. I set up a flash drive with this on it, but without a keyring containing my GPG private key.

It provides a backup in case the house burns down. Any comments regarding security?