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 Senior Editor, JWR. Today, we look at grocery price inflation. (See the Inflation Watch section.)
Precious Metals:
Radomski: Gold: The Breakout That’s Really Important.
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Gold Trade Between East And West Follows 90 Year-Old Pattern.
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Russian gold removed from some Western funds after Ukraine.
Economy & Finance:
A year-end reminder: Don’t lose sight of the inexorable growth of the U.S. National Debt.
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Shale Giant Pioneer Explains Why U.S. Drillers Won’t Drill More.
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At Zero Hedge: IRS Delays $600 Gig-Tax Rule.
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USPS, Amazon, And FedEx All Closing Down Locations.
Commodities:
Goldman Sachs bullish on commodities for 2023. Up 43%?
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H.L. sent us this: Widespread ‘Winter Kill’ Risks In US Wheat Soar Amid Imminent Cold Blast.
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OilPrice News: Shale Giant Pioneer Explains Why U.S. Drillers Won’t Drill More. Here is a quote:
“Earlier this month, the White House’s top energy advisor Amos Hochstein called shale drillers “un-American” for their refusal to boost oil production despite the administrations’ multiple calls to that effect. Now, the industry is striking back. Pioneer Natural Resources’ CEO Scott Sheffield, one of the most outspoken industry executives, has indirectly explained to the White House that shale drillers will not be drilling more and that is it. And he had an excellent reason for it.
Speaking to the Financial Times in an interview, Sheffield said that returning to production growth now would cause an outflow of investors and energy stocks will plummet to the bottom of the stock market. And this is why no public oil driller would do it.
“You’ve got to realise: when you produce a 2 per cent return on capital employed, you end up being at the bottom of the S&P 500,” Sheffield told the FT. “And so if we end up doing what he’s asking us to do, we’ll end up back at the bottom of the S&P 500.””
Inflation Watch:
Here are the categories driving grocery price inflation. An excerpt:
“Grocery product inflation crept up 0.5% on a seasonally adjusted basis in November, representing a slight slowdown from October’s monthly increase of 0.6%, but ahead of 0.1% inflation for all items, according to Consumer Price Index data released on Tuesday.
The food-at-home price increase was driven by increases in four of the six major grocery store food group indexes: fruits and vegetables (up 1.4%); cereals and bakery products (up 1.1%); dairy and related products (up 1%), and nonalcoholic beverages (up 0.7%).”
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Where on the grocery store shelves Walmart CEO says inflation will remain stubborn.
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Forex & Cryptos:
Zawya (of Dubai): Will the US dollar continue to rally in 2023?
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Risks, Opportunities, Pros, & Cons for Forex Traders in 2023.
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Bitcoin lost over 60% of its value in 2022—here’s how much six other popular cryptocurrencies lost.
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Another Bitcoin Miner Teeters on the Edge of Bankruptcy.
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Judge allows FTX founder Sam Bankman-Fried to be released on $250M bond to parents’ Palo Alto home. JWR’s Comments: Allowing bail for someone who defrauded investors more than $10 Billion is insane. Can’t the judge see the huge flight risk of someone who shuttled more than $1 billion to various havens in the last 90 days that his Ponzi scheme was still operating?
Tangibles Investing:
Lumber Prices Collapse As Homebuilder Sentiment Falters.
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Over at the GlockTalk Forums: AR-15 Prices Still Falling.
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. Thanks!