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 continuing inflation and some implications of the falling price of copper.
Precious Metals:
We’ll lead off with this great piece from the Ann Barnhardt archives: WE ARE THE GOLD.
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Greyerz: Falling Gold Prices Explained.
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Video interview with : Live From The Vault – The Day The Silver Market Broke.
Economy & Finance:
Kyle Bass: Bank runs are happening all over China.
“It’s important to note that the Chinese banking system represents 350% of Chinese GDP (on balance sheet) while the U.S. system is only 100%. One of the largest lending categories of Chinese banks is real estate…”
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Fox News: Severe recession needed to cool inflation, Bank of America analysts say.
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Several readers sent this link: Bonds Slump as Inflation Surge Fuels Bets on 100-Basis-Point Fed Rate Hike.
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Treasury Curve Inversion Deepens to Level Not Seen Since 2007. JWR’s Comments: Recession is here, folks. The officials haven’t yet announced it, but it is inevitable. The question for us now is: How deep will the recession be, and how long will it last? I’m now leaning toward it morphing into a full-blown decade-long depression. This will be needed to compensate for many years of malinvestment and artificially-low interest rates.
Commodities:
A video interview: Copper prices sink, flashing another recession warning.
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H.L. sent us this: Oil Plunges To Post-Putin Lows, Breaks Key Technical Support.
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Mexican President Suggests Americans Living Close to Border Come to Mexico for Cheaper Gasoline.
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Reader A.K. sent us this video link: “INSANE COSTS!” WHY TEXAS RANCHERS ARE RUSHING TO SELL CATTLE — DROUGHT 2022.
Inflation Watch:
At CNBC: Inflation rose 9.1% in June, even more than expected, as price pressures intensify. JWR’s Comments: That is the “official” figure from the Federales, which is skewed, by omitting “volatile” inputs like food and fuel. The real-word rate is closer to 16%. Oh, and did you notice that the same Bidenistas that claimed that the inflation was “transitory ” last fall tried to claim that it was “peaking”, in May and June. What a pack of liars! Stand by for more upward stairstepping, of inflation.
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AP News: US inflation surges again in June, raising risks for economy.
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Some data points for you…Over the past year:
- Gasoline is up 60%.
- Eggs are up 33%.
- Chicken Meat is up 18.6%.
- Milk is up 16.1%.
What was the root cause of this inflation? Take a look at this chart: FRED M1SL. The Federales can’t create trillions out of thin air and not expect a jump in inflation.
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At The Burning Platform: US Consumer Prices Soared In June, Americans’ Real Wages Fall For 15th Straight Month.
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Over at The Epoch Times: Majority of Americans Fear Soaring Inflation Will Impact Spending Power in Retirement: Poll.
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Producer Price Inflation Unexpectedly Surges Back Near Record Highs In June.
Forex & Cryptos:
CNN: The euro and the US dollar are at parity for the first time in 20 years.
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Bank Of Canada “Front Loads” Tightening, Shocks Market With 100bps Rate-Hike.
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How to identify and avoid a crypto pump-and-dump scheme?
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SEC dismisses claims against John McAfee, fines accomplice for ICO promo. JWR’s Comment: Somewhere, John McAfee and Larry Epstein are comparing notes…
Tangibles Investing:
A sign of the times: “This Year Was Quiet” – Aspen Mansion Market Cools.
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I noticed that Palmetto State Armory (one of our affiliate advertisers) is now frequently running sales on their PSA Dagger clones of the Glock 19 pistol. Some of these are package deals with as many as six magazines. You can get a very nice Dagger 9mm pistol with a threaded barrel and high profile tritium sights for about $100 less than a bares bones basic factory Glock 19. Oh, and if you plan to Cerakote your next gun in some weatherproof tacticool color, then watch for Palmetto’s specials on “blem”-finish Daggers and ARs. Those guns with flawed finishes — that you’ll be covering up with Cerakote anyway — are sold at substantial discounts.
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Food for thought, on older-model electric cars: Electric Car Battery EV Replacement Cost Exceeds Vehicle Value.
“Thinking about buying a used electric car? The cost to replace its battery could exceed the vehicle’s value. For a St. Petersburg family, that is the shocker when mechanics diagnosed its battery needed to be replaced. This 17-year-old was excited to get a car to drive herself to and from school. Her parents spent $11,000 on a used electric car for her. It’s a Ford Focus Electric. The car is a 2014 model, with 60,000 miles. Replacing the Ford Focus battery costs $14,000, exceeding the car’s book value!”
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 or 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!