From my perspective, modern stainless steels work fine. They are tough, hold an edge, can be sharpened in the field, made rough or polished, etc. With one exception though, all of my larger blades, my "survival knives" and machete's, are carbon though thanks mainly to cost. The one exception is my Aki SBM machete (see
http://www.sonic.net/~quine/sbm_rcm.html for a review. Alas, Ross Aki is no longer making knives due to medical reasons), and this beauty slices pulpy and fiberous plant tissue like the proverbial hot knife through butter.
On the other hand, I pulled out my carbon steel Livesay RCM machete the other day and discovered a thin patina of rust along the cutting edge. It had been coated with miltec late last summer before being put away, but even that did not stop a little rusting over the long moist winter. So I took it into the back yard and cut up some firewood with it, chopping up a half dozen pieces of long cured hard pine maybe 3-4 inches in diameter. When I was done, the rust was gone, at least thoughout the blade's sweet spot. This confirms Jeff and Ron's (and others) oft repeated comments that a blade used extensively does not typically develop a lot of rust.
As for the rest of the edge, my favorite rust cleaner is a "sandflex" block, also called "rust eraser". These puppies cost about $5 each, and one (I find a medium grit perfect for edge-rust removal) will handle maybe a few thousand linear feet of edge. Lets put it this way. I've had one block for 4 years. Its cleaned many dozens of knife edges, even whole blades (see warning below), and I've barely dented it.
You can find these at
http://www.grizzlyimports.com/ Go to their "product selection" link and search for "sandflex".
WARNING! Do
NOT use these things on mirror polished blades! Edges are OK I would think on any blade, but they will scratch a mirror polish. Still, who among us tries to maintain an unblemished mirrored surface on our survival knives? If it really
is a survival knife, these little gems will be worth having around for that occasional rust spot.