Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on the re-emergence of synthetic Collateralized Debt Obligation (CDO) derivatives. (See the Troubling Trends section.)
Marc Faber: Dollar is oversold, US stocks are overvalued. Sam Zell: Retail is a “falling knife”. Keith Neumeyer: Here’s what will send gold and silver higher.
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Gold Breaks $1286 as Yellen Words Beat NK Missiles
Oil prices waver as crude supplies fall, but gasoline stockpiles rise for first time in four weeks
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Trade and Taxes:
The GOP Tax Plan: Tough Choices With Limited Room to Maneuver
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Nafta Negotiators Turn to Thorny Issue as Ministers Arrive
Gold And The US Dollar. JWR’s Comments: It appears that the U.S. Dollar is now becoming over sold. Many SurvivalBlog readers hedged into Swiss Francs (CHF) and don’t look at that as “buy and hold” position. This might be a good time to parlay part or most of that back into Dollars. Or perhaps instead invest in some tangibles purchased with CHF. This could be a good time to buy a pile of new-in-the-box Swiss Army knives or a Luminox wristwatch. One good company that I’ve dealt with is located in Lausanne: Heidi-Shop. (By the way, they do accept CHF PayPal payments.)
Economy & Finance:
Are State Income tax deductions going away? Here’s why Trump’s tax plan will hit Californians especially hard
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Reader Matt S. sent us this: Yellen says Fed may have erred on employment and inflation, which would mean easier policy ahead
Troubling Trends (CDO Derivatives):
Citi Is Bringing Back One of the Most Infamous Bets of the Credit Crisis. Yes, they are packaging new Synthetic Collateralized Debt Obligation (CDO) derivatives. What could possibly go wrong?
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Also from Matt S.: Here are the retailers that have filed for bankruptcy protection in 2017
Finally, we offer this: The most lucrative collectibles revealed
SurvivalBlog and its Editors are not paid investment counselors or advisers. So please see our Provisos page for our detailed disclaimers.
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often “get the scoop” on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!
I have been reading/watching on YT of dire consequences to our economy, monetary system, GDP etc. for many years. None of it ever comes to pass. Yes, there was the “recession” of 2008, but in the scope of things, it was a blip compared to the “Great” recession of the 1930s.
I think the blather about doom and gloom to get more of us “prepper” types to read them. I’m 63, so I have a few years under my belt on this.
Normalcy bias, “It hasn’t happened therefore it won’t.”
I’m personally glad it hasn’t happened yet. I have a few more bills to pay off. But let a North Korea nuke go off and you’ll get all the dire consequences you want.
Texas Scout brings up a point that is quite fair. There are a large number of companies, individuals, bloggers (this site excluded, it focuses more on self-sufficiency) that make a good living peddling fear and tales of doom and gloom. Personally, my response has been primarily to stop spending money on the latest and greatest gadget being foisted upon us as the “Only way you’ll ever survive!”. I bought my land, I have storage food, I have bullets and bang sticks. My “prepping” focus is now on feeding myself and my family and doing what I can to enjoy my hobbies. Personally, a lot of “leaders” in this community have spent practically the last year complaining about how there not making enough money off of us since the election and dropping guilt trips about their personal financial struggles BC of it. I’m now of the general opinion that if someone is trying to sell you something, they don’t usually have your best interest at heart. Your goal should be to insulate yourself from collapse/disasters. Most of that requires you learn to take care of yourself, with as little $ as possible. Just my .02
Texas Scout if you want to see a real time SHTF situation in the USA look at Puerto Rico and worse the VI(Spanish,British,US),how would preps done there:hurricane construction,food,water,fuel,chainsaws and tools,medical supplies and training,transport(diesel pick up with fuel, saws and a winch-almost unstoppable),comms(sw,cb,handheld all with a network),gen set,long term solar+wind,cash(no power no credit systems or banks,PM’s if cash fails or barterables,business to help others and restart economy(not just handouts from others).
2008 was papered over and hidden to prevent panic and later to prevent repercussions for the perpetrators. We are going thru disaster(slowed but happening),if you are looking for soup lines go to the store on the 1st,2nd,and 3rd of the month and watch the food stamps,EBT,WIC and other purchases,go ask about section 8(housing assistance) in your area. Remember for most “out of sight,out of mind”,if you don’t see a family begging out on the street corner it isn’t happening.
Two points — First, note that in the article about Citibank bringing back CDO’s, they bragged about protecting the bank by not keeping any parts of them themselves. They admit they’re selling s**t, but are shifting all the risk to others. They’re willing to sell the system down the river for short term profits.
Secondly, I agree with Tex that predictions of doom are often used to sell us stuff. However, that doesn’t mean that the predictions are wrong. Prepping is like insurance — you hope you’ll never have to use it, but when something happens you’re glad you have it. International financial markets are growing more complex and more interrelated, thus making them more vulnerable to shocks and also making any crisis much worse. This trend has been going on for decades, and governments all over the world are ignoring it. A crisis doesn’t have to happen, but if it does it will probably be a doozy. And as someone who’s 71, an economist and financial adviser, I have a few years under my belt as well.
Wife and I were talking the same subject just the other day. All of our “non prepped ” family are all off on marvelous vacations and driving new cars and live in big Mc Mansions. We on the other hand spend all of our time involved in one back breaking task of one kind or another. I guess We’ll just keep on keepin’ on….. beats the possible alternatives.
I hope I die old and happy at 120 sitting on my front porch drinking coffee and reading a good book. But, that’s not how I’m preparing.
When reading any article from Bloomberg always remember the way this rag thinks. Bloomberg is the billionaire that finances most of the anti – 2nd Amendment tripe . He won’t be telling you the truth but only what he wants to deceive the unwashed masses clinging to their Bibles and guns . I’m thinking he is not a friend of America or her people .
Just like George Soros, and his son. Heirs to the Third Reich, leaders of the Fourth Reich.
I’ve been retired for just over a year now, after 43 years in the auto and steel industries. I’ve had a chance to rest, get caught up on all the books I wanted to read, and sit on the front porch and watch the world go by. BOOORRRIIINNNGGG!!!
Waiting on my lovely spouse to decide where we want to evacuate to. Can’t stay here, suburb of Detroit, be afraid, be very afraid. Don’t misunderstand, most of the people in Detroit are good, honest, wonderful people. But the politicians are all, to a person, serious, dangerous scumbags. Also in the suburbs.
At the end of the day, I don’t really recommend an actual retirement. A rest; sure. A time of healing; absolutely. But retirement; no, I don’t think so.
Think of it as Life 3.0. Figure out what your plans should be and get the job done. Then think about what Life 4.0 will look like.
If being prepared is a burden, then your doing it wrong! I could easily buy all the gadgets, but that would not be as good as figuring things out for myself!
I agree there are too many selling garbage and writing trash, which proves there are too many stupid people buying their junk and reading their garbage!
I can afford to retire, but have no interest in getting ready for death!
When God wants me and I pray he does, he will find me working, resting from working, or getting ready for work!