Economics & Investing For Preppers

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 Jerome Powell Appointment as the new Chairman of the Federal Reserve. (See the Economy and Finance section.)

Precious Metals:

GFMS: Gold Prices Could Hit $1,500 An Ounce In 2018

o  o  o

Gold loses its lustre as investors turn to stock markets



Icahn: The market will one day ‘implode’ because of these wacky funds using so much leverage

o  o  o

Over at, economist Brandon Smiths asks (and answers): Is A Massive Stock Market Reversal Upon Us?


No bull market ahead for commodities, Wells Fargo says


Economy and Finance (Jerome Powell Appointment) :

There has been plenty of conjecture about Fed Head Janet Yellen’s replacement, Jerome Powell. He was appointed by President DJT back in November of 2017, but he didn’t take over until Monday, February 5th, 2018. He has been on the Fed Board of Governors since 2011. Most pundits have suggested that Powell will continue with policies that mirror Yellen’s.

What most people don’t realize is that the Federal Reserve is a private banking cartel.  Fed policy and rates are of course set by a majority vote of the Board of Governors, not by just the chairman. The individual governors nearly always come from top leadership within the Federal Reserve banks. Based on nominations suggested by the Fed itself, they are appointed by the U.S. President and confirmed by the U.S. Senate for staggered terms of 14 years each. So their appointments stretch far beyond the influence of any four-year Presidential term in office. Once in place, the Governors are essentially outside of the control of the Executive Branch.

The Jerome Powell appointment is not controversial, but it still raises some questions. What leadership style will Powell employ? Is he a “loose credit” guy, at heart? Will he be a long-term chairman, or bail out after just a few years–like Yellen? And, how much influence will he exert, over the Board of Governors? Some have suggested that the Federal Reserve hasn’t had a forcefully influential Fed chairman since back in the days of Mr. Magoo Alan Greenspan.

Higher Rates Ahead

On Wall Street, the consensus seems to be that the Fed will continue to gradually raise interest rates. That will surely slow economic growth, slow the gains in the stock markets, and strengthen the U.S. Dollar.  (Since higher interest rates tend to strengthen national currencies–due to an inflow of foreign investment.) A stronger Dollar will also mean weaker exports. The key questions are: How quickly will the Fed raise rates, and how high will rates go?

If the Fed Board ever takes a strong dislike to the Trump Administration, they could raise rates quickly. The resultant economic disruption would make it almost impossible for Trump to be re-elected. Let’s not kid ourselves, folks. Behind the scenes our Nation is ruled by bankers, not by politicians or statesmen.


Tangibles Investing:

The demand for private timber land is growing: Trend 2018: Blended finance and biomass ‘to buoy timber markets’



SurvivalBlog and its Editors are not paid investment counselors or advisers. So please see our Provisos page for our detailed disclaimers.

News Tips:

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!


  1. 1) I’m not very informed on investing but the news stories comparing the recent drop to 2007 are full of cr*p. The yield curve inverted toward the end of 2006 — indicating that the smart money saw the US economy turning to cr*p with a recession coming within a year (subprime crisis?) — and hence the smart money was heading into long term US Treasury bonds. Best refuge in a depression.

    2) Today, in contrast the spread between the 10 year and 2 year Treasuries has been increasing — from 0.55 percent a month or so ago to around 0.77 percent today. I.e, the 10 year is higher than the 2 year. Suggesting the smart money sees an expansion or at least stability.

  2. “Re “Let’s not kid ourselves, folks. Behind the scenes our Nation is ruled by bankers, not by politicians or statesmen”

    My concern is that we will be ruled by the foreigners who have loaned us $6 trillion in just 8 years — $3 Trillion of which were buying the federal governments Treasuries (i.e, IOUs)

    If we are treading water after borrowing and spending that much, then what happens if the spigot is turned off? Or worse, if the money starts going out with the tide. What happens to a country that experiences capital flight ain’t pretty — just look at Argentina in 2001.

    Yeah — I know. Washington thinks it can just print more money. See what happens when the baby boomers see the resulting inflation turning their IRAs, pension funds and Social Security “accounts” into toilet paper. Better yet, check to see what Weimar hyperinflation and Barmat financial scandal did to Hitler’s approval rating.

  3. Sooner or later, we will wake up and realize, the endless note printing has created a massive inflationary bubble. It’s classic – too many notes chasing too few goods!

    In this case it is the banks with all the cash and they are dumping it into their only choices – stocks and bonds.

    The losers are the suckers thinking the markets are an investment, while the pros knows it’s a trade. AT

  4. We have had 10 years of inflation since everyone pulled out their money on 07/08. Unfortunately I can’t calculate the current rise in the market adjusted for inflation, my brain isn’t that big. So I can’t say what is a bubble or not. But for he first time in a long time, my friends in manufacturing are busy as h***, and that’s a god thing.

    In the past we have had congress print our money, banks print our money, other banks (fed reserve) tell the treasury to print our money, and our money limited by gold, then silver. All had their issues.

    Being diversified in skills, and in investments is the best way to adapt to whatever comes.

  5. The bankers resent Trump for beating them a few years back but they will not turn on him unless he threatens their ability to make money. They are bankers after all. Rates going too high too fast would create government instability since the government simply cannot pay the higher rates. Banks favor stability, until it is time to sheer the sheep.

    Amen to being diversified in skills and in investments.

Comments are closed.