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. Most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, I speculate on how more PV-equipped vans will soon hit the market, for use as Bug-Out Vehicles. (See the Tangibles Investing section.)
This is some now slightly dated but still incisive analysis: Violent Price Divergences Between Real Physical Precious Metal and Futures Prices
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Economy & Finance:
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H.L. also sent this: “We Can’t Give Our Product Away” – Farmers Toss Thousands Of Acres Of Fruits, Veggies As Sales Plummet. JWR’s Comments: There is truth to the old saying: “There Ain’t Such as Thing as a Free Lunch.” But there is such a thing as a Taxpayer-Funded lunch. That is a public school lunch. And when they stop serving those millions of lunches, then it sends shockwaves through food commodities markets.
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Nick Cunningham at OilPrice News reports: Oil Could Fall Back To $20
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A “must-read” article, over at Zero Hedge: The Biggest Risk in the Global Financial System that No One is Discussing
Here is a key quote from the lengthy article:
“Of the $523.96 trillion notional amount of OTC interest rate derivatives, 38% and 25.8% respectfully were denominated in US dollars and Euros, comprising the lion’s share of nearly two-thirds of all global OTC interest rate derivative contracts. Of the latest figures of $99 trillion of OTC ForEx derivative contracts that exist, an overwhelming 88% were underwritten for the US dollar. In addition, Central Banker interest rate decisions in 2020 that contradicted the narratives they publicly presented in 2019, and the reason I postulated in August 2019 that it was near impossible for US Central Bankers to commit to any interest rate policy other than to cut interest rates, was based upon my research of the OTC interest rate and ForEx derivative markets. I believe it is reasonable to conclude that US Central Bankers’ interest rate decisions since then have confirmed my assumptions about the global OTC interest rate derivative market. For the same reason that US Central Bankers could not raise overnight interbank lending rates in America much above 2.5% as the maximum rate, European Central Bankers also could not raise their marginal facility interest rate from its paltry 2019 0.25% level to even rates in the low single digits.”
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Ar Jameson Lopp’s site: Announcing Casa Titanium
Coronavirus travel restrictions have profoundly disrupted van life for the ‘yoga, surfing, van dogs, drone cameras, and Man Buns” crowd. YouTube is now replete with “we’re stranded” videos from van dwellers. Ditto for full-time RV-dwellers. And even from some expedition vehicle owners. Some of the videos are downright pitiful. To quote Mal: “Seriously, there could be tears.” Thousands of these folks are now hunkering down in Mom and Dad’s basement. I predict that many of them may decide to take advantage of this self-isolation time to buy and equip new vehicles and sell off their old ones. Others may give up the lifestyle entirely. This will probably mean that a large number of photovoltaic power-equipped vans will soon hit the market. Many of these are quite stealthy–designed to outwardly look like a tradesman’s utility vehicle. Needless to say, such roomy vehicles are ideal for use as Bug Out Vehicles (BOVs), by preppers. My advice: Start watching Craigslist, Hemmings Auto News, and various used conversion van sales web sites. You may find a lot of very nicely-outfitted low mileage vans (like this one) that are likely being sold at a loss.
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 only about commodities and precious metals. Thanks!