I don’t know if this has been posted, but I just found a way to make unlimited rags.
In the build that I am playing, making a trench coat costs 11 rags and some thread. When you cut up that coat with a knife, you get 17 rags. Rinse and repeat for unlimited rags, and disassemble the rags for unlimited thread. Or strings. Or ropes.
I know that rags are pretty plentiful to begin with, but using this, you never have to go anywhere to get some.