Here are the latest news 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 SurvivalBlog’s Founder and Senior Editor, JWR. Today, we look at the risks of another economic depression. (See the Derivatives section.)
Video Interview: Why gold will hit $2,000 within two years according to Nolan Watson
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Economy & Finance:
Buckle Up, Folks! Global M&A Plunges To 3-Year Low Amid Recession Threat
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China Will Rein in Hong Kong Through Its Economy. JWR’s Comment: And if that doesn’t work, they’ll deport the international press and start busting skulls.
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“President Trump is reprising the mistakes of Herbert Hoover. And, we’ve been pretty sure for a few months that Elizabeth Warren will reprise Franklin Delano Roosevelt as the Newer Dealer. And she will be pressed by a socialist mob (as was Roosevelt) and like him, she will likely have to face war with China in the 2024 period, just as Roosevelt did.
That means, Warren (or whoever) (or Trump in round 2) will have to really focus on defense.
Our plan is to buy defense stocks after a crash. War is the traditgional economic medicine and the “death industries” do well before the sh*t starts to fly.
What’s different today is the out-of-phase echo of Teapot Dome, which happened well before Hoover’s time. And yet, just at we have Hoovervilles, there are people calling out Trumpvilles in places like Seattle. Not enough free lunch yet.
Core problem of Modern Times is “the Middle is Gone.” What I mean is, you either take the dole OR you work 100-hours a week. The 40-hour week middle is still there – on average. But have you looked for a 40-hour week job, lately? Most come with 20+ additional hours if you want to keep the job.”
and, later in the essay:
“…we likely have a ton of beliefs about the solidity and robustness of the global interconnected economies with hyper-complex derivatives overhanging, that are just waiting to fail when put to a ‘real, uncontrolled stress test in real time.’
And should any one of those assumptions fail, it won’t be like a single bank (think Deutsche) going down. Nor would be be a region going bust (thing the European Union). It will be (replaying 1929) where the whole world implodes.”
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Forex & Cryptos:
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SurvivalBlog and its Editors are not paid investment counselors or advisers. 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 closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News from local news outlets that is missed by the news wire services is especially appreciated. And it need not be just about commodities and precious metals. Thanks!