Economics & Investing For Preppers

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, we look at the ups and downs of the classic car market. (See the Tangibles Investing section.)

Precious Metals:

First up is this, over at Zero Hedge: Massive Silver Bets as Treasury Wants More Trillions

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Erik Lytikainen: The Gold Bull Market Is Just Getting Started

Economy & Finance:

National debt grew 39 percent under Trump

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Yellen Gets Wall Street Buzzing About 50-Year U.S. Treasuries. JWR’s Comment: Seriously, does anyone not recognize that the purchasing power of the U.S. Dollar will decline by at least 70% in the next 50 years? Anyone who buys a 50-year bond is an idiotic contrapreneur.

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Why Biden Wants to Win the Fight for $15

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An in related news: CBO: Biden’s $15 minimum wage could kill 3.7 million jobs

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Video: Ron Paul on the next economic collapse, America’s future, and universal basic income (Pt. 1/2)

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Inflation Is Spreading Broadly into the Economy. Amid Surging Costs, Companies Raise Prices, and Customers Pay them, Despite Weak Economy, 10 Million Missing Jobs

Commodities:

Jamie sent us this: Biden’s Federal Land Lease Ban To Send Oil Prices Higher: Goldman

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United States LNG Exports Reach Third Place

Equities:

At Wolf Street: Eurostar Near Collapse, Asks for Bailout, Becomes Hot Potato

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Insider-Selling Explodes To Record Highs As Buybacks Re-Emerge

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Time to Worry About Stock Market Leverage Again: Another WTF Sign the Zoo Has Gone Nuts

Forex & Cryptos:

Pound Higher as Vaccination Roll-Out Continues

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Over at Currency Thoughts: European Central Bank Maintains Loose Monetary Stance

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Bitcoin Facing Uphill Task, Why BTC Could Drop To $30K Again

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The United States updates its crypto AML/CFT laws

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Sequoia To Pay Interested Employees In Bitcoin

Tangibles Investing:

These 20 Classic Cars Have Seen A Significant Drop In Value Recently. The article begins:

“The market for classic cars has changed a lot over the years. As the decades roll on, more cars are going to start to be considered “classics.” This means that the prices are also going to start to go up as well. But the world of selling classic cars is a lot like the real estate market. And the values tend to fluctuate from time to time. This can be caused by several things such as buyer trends and different aspects of the automotive world. Some cars have taken a pretty heavy hit in value recently.

Buying vehicles from well known automotive auctions can be a great way to gauge the actual value. What people are bidding for on a vehicle gives you a better idea as to what the potential value is. Some vehicles have surprised the auction community in recent years as well.”

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These 10 vehicles are the hottest 2021 classic cars, according to collector car insurer Hagerty

Provisos:

SurvivalBlog and its Editors are not paid investment counselors or advisers. 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 closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News items from local news outlets that are missed by the news wire services are especially appreciated. And it need not be only about commodities and precious metals. Thanks!




45 Comments

  1. As the depression becomes worse it is likely that only the ultra wealthy will have the money
    or interest in buying classic cars or anything antique for that matter.

    The smart money will center around the necessities of every day living. During the last great
    depression many black markets came about and bartering was normal and widespread. It will be worse this time as there are millions more mouths to feed and a disease that will not be going away anytime soon.

    My resources do not include any fiat currency. The time is coming that only Gods Money will buy you anything to eat,drink,shoot,or cure an ill.

  2. re:
    ‘minimum wages’

    Why only us$15 for each hour of laboring?
    I could easily see us$30 for each hour of laboring… or us$50 or us$213.57 for each hour of laboring.

    Those suggestions are for entry-level non-skilled laboring.
    For the second day of laboring, the now-adept laborer can be promoted to management… a ‘position’ rather than a ‘job’.
    And that right there is worth at least us$499.95 for each hour of supervised supervising.

    *****

    In other news, Alexandaria O’Casio-Cortez offers a brilliant solution to the rising costs of making fiat currency:
    * print only on one side of the papers!
    Folks, that right there is using the old noggin.
    And ought to easily put her in the us$899.95 range for each hour of coming up with great ideas.

    *****

    But, as usual, anonymous posters to popular blogs on TheWorldWideWeb will continue scribbling our nuggets of wisdom gratis (aka ‘fer free’) out of the kindness of our hearts.
    Our rewards are in knowing people appreciate all we do!

        1. Hmph. Reeducation camp, you say? I might get more sleep in a cell…and if I got the one adjacent to yours, then we could pass the time composing irreverent lyrics in code by tapping on the walls….

          Wait. WAIT. NO…..CHOCOLATE….RATION?!?!

          HUUUUULK SMAAAAAASH!!! They’ll never take me aaaaaaalive!!!!

          1. HEY__HEY___HEY

            This here’s a serious survival site. Which caliber will best stop an Abrams tank…How to keep chickens (from doing what?)…whether to invest in vintage cars or airplanes. That kind of thing.

            Get serious, now. Or…

            Carry on

          2. LOL Once a Marine! Well obviously, you want to KEEP your chickens from going cuckoo and commandeering your tanks and rolling over your cars and airplanes in them. The economic consequences would have you running round like, well, a headless chicken, trying to re-coop the losses of your nest egg. So you’ll want to choose a feather-light round that still has the eggcellent stopping power to fricassee that rebellion before it hatches.

            As far as SERIOUS survival, I don’t joke about my theobromine. This ol body I inhabit has been continuously either making new humans, or nursing them, or both at the same time, since late spring 2013. My very physical existence depends upon a steady supply of chocolate, or else like a dying star that has burnt through all of its fuel, the resultant supernova would consume me and everything else for many parsecs around…

  3. $15 minimum wage bring to mind something that happened to me in the early 80’s while working at a packing company. George McGovern had voted against a federal minimum wage three times and I was complaining about it when some of my union co-workers called me a bad union man. Three guys tried to explain to me why G.M had to vote against it and my answer was, if we had federal wage, then the company would have to pay more to keep their skilled workers ( we were going though union contract meetings at the time ) and also we wouldn’t have to kiss the company rear end for a few more benefits.. There is more to the story, but there isn’t enough space here, but that’s the bare bones of the incident. so this minimum wage just makes me shake my head in wonder.

  4. The minimum wage is about raising the floor so that all of the union and other higher paying jobs can demand a parity increase in their wage. It is not about creating a “living wage” it is about giving powerful lobbies more power.

    Ask why farmers don’t even pay the minimum wage we have presently. Will they have to pay $15/hr??? NO! And the reason is that the farmers lobby needs that exemption so they can hire slave labor.

  5. Posting a link to a possible Covid-19 ~>preventive treatment. (An economic development)
    …….. [Because, many people (including me) are apprehensive about being currently vaccinated for Covid-19.] … … Plus, the Covid-19 planned crisis has allowed the rich to become richer, and many working Americans to become poorer. Covid-19 has been an economic disaster, and is linked to a spurious 2020 election.
    ********
    ********
    From the jewishnews(dot)timesofisrael(dot)com/ =

    Israeli behind ‘game-changing’ Covid nasal spray says it’s 99.9% effective.
    Gilly Regev says her ‘hand sanitiser for the nose’ is inexpensive and can be distributed to poorer countries to stop the spread of the virus.

    The Israeli co-founder of a nasal spray that kills 99.9% of the coronavirus that causes Covid-19, has told Jewish News that she believes the spray will be a game changer in the fight against Covid-19.

    Dr Gilly Regev, who co-founded SaNOtize Research and Development Corp. based in Vancouver, Canada explained via telephone that “If you use it daily, I really believe you won’t be affected by Covid-19. We have shown in the clinical trials that the people who used it did not get infected.”

    Lab tests on the SaNOtize treatment at Utah State University’s Antiviral Research Institute confirmed that the company’s Nitric Oxide Releasing Solution inactivated more than 99.9% of SARs-CoV-2, the virus that causes Covid-19, within two minutes.

    The SaNOtize treatment is based on nitric oxide, a natural nanomolecule produced by the human body with proven anti-microbial properties shown to have a direct effect on SARS-CoV-2, the virus that causes Covid-19. The treatment can be delivered by nasal spray, throat gargle or nasal lavage.
    [Little bit more at link.]
    ********
    ********
    We know with certainty; some of our politicians will take a bribe and allow people to die. (And help them die too!) = “For the love of money is a root of all kinds of evils …” The Good Book.

    Will our Senile (take a bribe) Joe and Dr. Fauci permit a low cost ~effective preventive treatment for Covid-19? Or, will we be faced with a more dangerous vaccination requirement? [There’s big money for big business and politicians in selling vaccinations.]

    There seems to be a lot of viable and good options for people besides a vaccination. Hopefully, we can hold out until other options besides a vaccination become approved.

  6. Personally, I would love to base my pay on performance rather than hourly rate. Pay me a percentage of what the company gets paid for my services or what I save the company on claims negotiations, and I would be a millionaire now. A salary only inspires mediocrity at best. I work for the bonuses. No bonus, then I am just a seat filler. That’s because I can outperform the vast majority of my peers when there’s real money on the line. Anyone with a bona fides can fill a seat, without really doing anything significant. Since I am stuck in this system, I’ve used my talents to garner the highest salary I can get for the least amount of work I have to do. This frees me up to pursue other interests that don’t necessarily generate income, but provide for quality of life.

      1. Anyone with a brain and some reading on the history if economics knows that wages have not kept up with inflation. Minimum wage was 7 plus dollars in the 90s. McDonalds big mac meal was 4.95 or so. Today minimum wage is still 7 plus dollars but big mac has doubled in cost. If all was fair in our society then wages would have kept up with cost if living but the greedy have kept the wealth and allowed the government provide food stamps for those struggling to get by. It doesn’t take a lot to flip burgers, that is true but be honest in the fact that people have been fooled into thinking companies are fair in how they pay employees. And as a side note, I was a homemaker for over 2 decades. Conservatives love woman staying home and providing for our children and men. When i had to enter the market for a job last year you know what I got? $9 a hour. Because I have no “skills.” I cant look my daughters in the face any longer and tell them to trust that a husband will provide. The market doesn’t allow it for low income people. I am reasonably intelligent, quick learner, use reason and logic skills better than most the people I have encountered this last year but I am only worth $9 a hour. Some of you are scoffing at a minimum wage increase but you don’t hold the candle to the companies who refuse to hire full time or pay a living wage. Out of 50 plus cashiers there are only a dozen who get full time. Most people want full time but are not allowed it. I got 17 hours this week. How any I supposed to pay bills on that? And any company I interview with is offering the same. 20-25 hours a week. If Im lucky. Im not asking for welfare or a socialist country. Im saying it had to be more fair than it is. Anyway. Im done. Compassion has left this site and I am done with it.

        1. LSM, I completely understand!!! I feel crushed you hurt and are done with this blog. My eyes are filling with tears, and I just want you to know, I will always be praying for you. Always. Always. Always. Krissy

        2. The commentators of this site do not necessarily represent the editor’s views. Please don’t think we ourselves do not have compassion for you. We know how hard for women it is to reenter the workforce after raising children or while raising them. The system that reigns is purposely not friendly and was established purposely to break family bonds and to cause folks to be supported by government. It is evil. I’m sorry about that! I’m also sorry that some commentators views have offended you. Please forgive them.

          Sincerely,

          Lily

        3. Dear LSM, other than what you’ve written, I don’t know your circumstances or even your location, but I can say I am truly sorry for your struggles. I also entered the work force with no skills. My first two jobs were as a dishwasher and a garbage man. From the there I went to McDonald’s. In my early years I sometimes three jobs at a time and even 80-90 hours a week to support myself and my family. Eventually, I worked my way into management. Two suggestions I can make, talk to your manager about how to increase your hours, wages or get a promotion. You should also check your local unemployment office (or job solutions) for any training that they might have available. If you wish to discuss this further please request my email from Avalanche Lily. I am willing to offer any advice or help I can if you want. I am sorry I offended you.

  7. “Yellen Gets Wall Street Buzzing About 50-Year U.S. Treasuries. JWR’s Comment: Seriously, does anyone not recognize that the purchasing power of the U.S. Dollar will decline by at least 70% in the next 50 years? Anyone who buys a 50-year bond is an idiotic contrapreneur.”

    Hey JWR, totally agreed on the “idiot” part.

    In the past 50 years (1970-2020), the dollar has lost 84.7% of its value so I’m guessing with the printing presses now running so hot they have to use liquid nitrogen to cool them, it will take a heckuva lot fewer years to decline by the next 84.7%.

    I’m also having a hard time believing that in 50 years the United States will even exist in its current form, and/or the dollar will be replaced due to near-hyper inflation or replaced due to some other event.

    The national debt increased close to 40% under Trump and we know Biden is going to try to outdo Trump in everything so we can only imagine how much he and President Harris will increase it over the next four years. It’s going to get interesting. I wouldn’t be the least bit surprised if we see deficits of 3+ trillion dollars every year for the next four years, and possibly from here on out until it all collapses.

          1. You are correct- that $2000 a month will not have the purchasing power it has today. I am guessing that the Fourth Reich/United Soviet States will print currency like mad to give to minorities (they have already said so), give away hundreds of billions to our enemies overseas like Obama did, destroy fossil fuel (!) jobs and minimum wage jobs and will keep other non-essential jobs locked-down, which will keep the economy from ever recovering. Plus, landlords will begin filing for bankruptcy, renters will be evicted from their homes for non-payment. People will be losing their homes, and their expensive cars, trucks and SUVs will be repossessed. Millions are already months behind on their car payments. Thanks China/Biden for planning and doing all this !
            One other thing I should mention- persecution of Christians and freedom loving Trump supporters. Worse times are coming. Are we in the beginning of the tribulation ?
            Woah ! I did not mean to get so gloomy, but one thought led to another and here I am.
            Is there a solution ? Considering that the only thing that the socialists understand is FORCE, (remember that Mao said all power comes from the barrel of a gun) we will have to decide if we will meekly submit and live under their domination or if we will choose to eliminate the problem. I think that we are just waiting for a single spark to set it all off. We shall see.

  8. As far as Yellen getting Wall Street buzzing. I don’t think it’s going to last 50 years.
    At the rate bejing dipstick is going at it I’m guessing more like the end of the year.
    These clowns just can’t seem to get the economy imploding fast enough. And it’ll spread world wide in a few short months….

    With the destruction of jobs and closing/failures of businesses at breakneck speed, dipstick, and no one else, has thought out the touted green new deal BS jobs. That there is no infrastructure to support it all even close to being in place yet….. So there is at least a 3 year span. Oh, did I mention the fact that with the closure of the fossil fuels industry (coming to an area near you) there will be no machinery available to build it. Until of course all these lectric machinery apparatuses are built, but then there’s no machinery to build them… Welcome to “A World Made By Hand”…….

  9. I would consider selling half of my Bitcoin and buying gold. But I ain’t got no Bitcoin!
    I learned the hard way, that it is better to get out of a bubble early, even if I might lose possible gains due to a temporary spike before a burst. Timing is everything, but attempting to figure out the exact time when a bomb blows up is very risky business. Pigs get fat, hogs get slaughtered. Good luck.

    1. I totally agree. My husband has mentioned a couple of times that he would like to buy some bitcoin now. Ehhhhh…. at this time, I’d sure rather invest in books and seeds. And land.

      1. The normalcy bias is so strong in some persons, that even though they appear to have a good understanding of the dire circumstances we face, they will insist on spending huge amounts of money on something that makes them feel in control and normal again, rather than be responsible. Even though my annual income is only around $3,000 per year, I am in much better position to survive the possible worst case scenarios I see in our future, than those close to me, who are worth millions. They will not buy much ammo, but they will run to buy tracks of land at bargain prices.
        So far, the ammo has doubled in price, and their land purchase has not. While it is great to have a method of preserving wealth, I would be more concerned about preserving life.

        1. You definitely are, because you have many important skills and an advantageous location. And once the royalties from the Punk Pinger come rolling in, you’ll have tons of cash too!
          That’s a very good point about people needing to feel in control of something. Humans need that. (She says, giving her alphabetized spice cabinet the side-eye…)

          Our “land investment” if the offer is accepted is actually our retreat (and probable future home), in the middle of nowhere over a mountain pass in the way back of an umarked holler. I am busily researching infrastructure improvements such as solar, figuring out which garden plants will do best there, etc….while trying hard to remember to refer to it as “investment” and use all of those market-y finance-y sounding terms such as “resale value” around such members of my family who refuse SO HARD to open their eyes that they got very upset at the mere mention that some people had even *mathematical* concerns about potential election irregularities. Sigh. I’m sure tons of people here at SB have experienced the feeling that their own reality is growing further and further away from the realities of other people in their circle…..

      2. With Common Core math…drawing 2 little squares and 2 more little squares may equal 5 little squares, depending on who you are, and how neatly you make the squares. And how bad you need the grade. Or is it 4?
        Sure takes a long time to do problems that way. Maybe the libs must have a Common Core noggin.
        We’re all talking numbers, but I think we could subtract $$ numbers from them by not buying their products. That seems to work for them when done to us.

        They’ll know when people are not watching NFL, NBA, MLB, NHL, NASCAR and other “kneelers.” And those disrespectful others who stay in the locker room. I know some who are still involved in MLB in some capacity and they are pressured by a few.

        In the meantime you don’t have to draw the little squares.

        God Bless us all, especially those who take a stand for our side for once.

        Semper Fi

    2. I generally agree with the idea of investing inland. But then, one has to be careful. Witness.

      21ECONOMICS FOR THE 99%8. Housing and the Economic CrisisTim SimonsThe US housing crisis of the mid-2000s is often identified as the domino that first precipi-tated the recession that began in 2008, and a wave of home foreclosures has been one of the recession’s most visible consequences. However, the connections between real estate markets, home foreclosures, and general economic crisis are not always clear. What caused the “housing bubble”? Why did it burst, and how did it have such devastating effects? This chapter will provide a brief analysis of the housing crisis and an overview of some of its effects.Bursting BubblesIn the early 2000s housing prices began to rise very rapidly, producing a “housing bubble,” which means that home prices rose far beyond their true economic value. By 2006, the average home value, adjusted for inflation, was nearly double what it had been in 1996. Why did this happen?The housing bubble, like the stock market bubble of the 1990s, was mainly a product of two features of neoliberal capitalism. First, the huge amount of wealth going to the 1% was more than they could spend on luxuries or use for productive investments. Some of those billions found their way into speculative real estate investments, which started home prices rising. Second, the giant banks, freed from government regu-lation, were looking for high-profit loan opportunities, and they were happy to lend money to speculators in real estate, which propelled home prices up even further. The banks created mortgage-backed securities, which are financial instruments that derive their value from housing prices and mortgage payments. These became the hottest thing on Wall Street. The riches offered by trading mortgage-backed securities prompted a lot of predatory mortgage lending and outright fraud.Every bubble must eventually burst, since the speculators who drive the price spiral will sell as soon as prices stop rising—and they cannot rise forever. The housing bubble came to an end in 2006-07. The fragile structure on which the housing bubble grew—belief in an ever-growing asset, regulators and bankers turning a blind eye to risky and even criminal behavior on the part of bankers and hedge funds, predatory lending practices—began to crumble. It became more difficult to refinance mortgages, and so the rate of foreclosures began to increase. The mortgage-backed securities that had so enticed the big banks suddenly plummeted in value, pushing the banks to the edge of bankruptcy. The damage caused by the housing crisis was enormous. As much as the giant banks such as Goldman Sachs and Bank of America lost, the damage to homeowners was immeasurably worse. Throughout most of the 20th century, most Americans’ wealth, if they had any at all, was in their homes. When the real estate bubble burst, many Americans saw their primary store of wealth decline sharply in value or disappear entirely. The bursting bubble’s shockwaves traveled through the economy: construction fell to a fraction of its early-2000s level, consumption spending declined as people sacrificed to make house payments, pensions and retire-ment funds connected with mortgage-backed securities.

      “To have a real life, people must participate in real community. In fact, a
      new cultural definition of wealth could be not the GNP, but how many people
      truly know and care about each other.” ~ Mary Pipher

      Carry on

  10. Biden is eliminating many thousands and possibly millions of good jobs in favor of “green” jobs. Most of these “green” jobs are at best only in the planning state meaning it will be years to get them going. Also, most of these “green” jobs will require at least a two year degree. All of the raw materials will and very likely most of the products required for these “green” jobs will come from overseas. And should all these wind and solar farms get constructed so that most of all of our electric needs are covered, what happens to those good paying installation jobs? Laid off. So no significant job gains based on converting to green energy.

    1. Since I have a friend who is a pioneer in the solar industry, I can assure you that solar and wind installations require maintenance and upkeep. Lots of circuitry and mysterious things we don’t see. Rest assured, the green jobs will continue to be there.

      Then there is this: https://www.cnbc.com/2019/10/16/us-green-economy-generates-1point3-trillion-and-employs-millions-new-study-finds.html

      Read the first few paragraphs for a good overview.

      Carry on

      1. Sorry it’s taken a couple of days to respond. I know there will be needs for maintenance crews at these sites. From what I’ve learned, the installation crews are quite large and the maintenance crews much smaller. In my opinion, the only way to prevent having to layoffs of installation crews would be to do this in a longterm rollout with fewer crews over 20-40 years. By the time they have completed nationwide installation, they can restart at sites that are obsolete. I have no problem going to green energy, i just don’t think it should be forced or subsidized by the government. Personally I think solar would be best utilized on housing, private and government buildings.

        1. Agree completely: “I have no problem going to green energy, i just don’t think it should be forced or subsidized by the government. ”

          That goes for oil, gas, and coal as far I am concerned. Well subsidized for decades. The green economy people just want to feed at the same trough.

          Carry on

  11. 50 year Treasury Bonds ? ROFLMAO ! Stop it ! You’re killing me here ! The way things are going, the United States of America will not even exist in FOUR years, let alone 50. Not to mention the fact that buying a 50 year bond would be the equivalent of burning your money and burying the ashes. Thanks for the laugh.

  12. The two CNA that work for my wife well they work for the hospital
    But have been working with the wife in her office for years are going to leave if $15 min is set in place
    Why have the stress and everything that goes with it at a doctors office when they can make $15 flipping burgers
    The one makes 10.80 an hour now That is $2.00 over minimum wage now
    Will her pay go up to $17 an hour I do not think so
    So with her having years one the job a new person will come right in and make $15 an hour
    This is not going to be good

  13. If you want to invest n tangibles, consider this from SB a couple years back.

    I just heard about a veteran-owned, family-operated organic seed company, located in Marysville, Ohio: Red Fox Organics. They offer an heirloom (open pollinated) seed assortment would be of interest to most SurvivalBlog readers.

    I checked they are still selling seeds.

    Carry on

  14. My wife and I both got the Moderna Vaccine (1st shot) a couple weeks back. We delayed a trip in order to get the shot. Her dad is extremely elderly and fragile and we were very worried for him; thankfully he also got it, and thankfully none of us had any ill effects. Missionary friends of ours cannot yet get back to their “field-nation” because they can’t show immunity and their alternatives are “not good” in that nation. 1-shot immunity is roughly 80% from Moderna (less from Pfizer). I serve (a few hours) in a homeless clinic providing MD care and was delighted to have far far more protection than the masks provide….we wear masks and gloves and do the best we can for the poor and downtrodden, charging nothing. Meanwhile — TWO people are now suddenly interested in learning metallic cartridge reloading from me and purchasing equipment….I’m blessed to be able to help them significantly. Do what you can, bloom where you’re planted, be as much salt and light as God would have you in these days.

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