Economics and Investing:

I’m sure you’ve noticed that US Dollar Index is down to 74.4, spot gold is up to $1,507 per ounce, and spot silver is at $45.89. As I’ve been warning you since September of 2005: Get out of U.S. Dollars and into useful tangibles! If you feel that you’ve missed the boat on precious metals, then buy guns and common caliber ammunition while they are still affordable. I suspect that they won’t be affordable (in U.S. Dollar terms) in a couple of years. Also, be forewarned: The COMEX Governors are soon likely to slam on the brakes on the precious metals markets by changing their trading rules. (Most likely by raising margin requirements.) Prices will get very volatile. Be ready to take advantage of any steep sell-offs.

J.D.D. forwarded this: Balancing Budgets on Drivers’ Backs

Eric B. sent this: Asian Investors Risk Losses on Dollar Holdings After S&P Outlook Cut

Reader “AmEx” flagged this: Gold-Shortage Threat Drives Texas Schools Hoarding 664,000 Ounces at HSBC. If just 10% of futures contract buyers start demanding physical delivery, then there will be a monumental shortage.

G.G. offered this: U.S. corn reserves may hit 15-year low

The best currency is gold and silver, says Marc Faber. (A hat tip to B.B. for the link.)

Count On It! This is an article about raising the debt ceiling. OBTW, if they keep raising it so consistently, why do they still call it a ‘ceiling’? Perhaps they should more properly call it an elevator.)

Items from The Economatrix:

Five Years From US Housing Peak, Still No Bottom

10 US Housing Markets at Risk of a Major Collapse

J&J Lead Dow Stocks Higher

Sell-off Spreads to Asia After S&P Downgrades US Debt

S&P’s Ratings Warning is a Small Step, But a Giant Leap in Every Other Sense