Category: Economics & Investing

Wondering how “Too big to fail” came about? You need to see this graphic: The Instrument of Our Enslavement – JFJ o o o The War on Cash: A Country by Country Guide o o o Items from Professor Preponomics: US News Taxpayers to IRS: Fix the Debt Yourself(Washington Examiner) Taxpayers’ donations to debt reduction are drying up. Maybe they finally realize that their contributions haven’t made so much as a dent in the debt, nor have their contributions changed the behaviors of a spendthrift government. Excerpt: “Taxpayers have been able to donate money to reduce the national debt since …

Items from Mr. Econocobas: Peter Schiff: Clueless in Davos – While I agree with Schiff, I however don’t agree that this is just misguided policies, rather it is intention in my view. Also, not sure many foreign currencies will rise either. Why A Former Fed Official Fears A Global Meltdown Video: Bill Holter- This Is It, The Collapse Is Here – Bill is always interesting, and I am not deep enough into the derivatives world to know there are defaults happening, but it is worth the watch/listen. Items from Professor Preponomics: US News Bank Mortgage Settlements Total $144B: Where Did …

Feds foresee $30 trillion debt, blame looming tax hikes and Obamacare – G.G. o o o America Will Spend More on Taxes than Food, Clothing, and Housing Combined (Graphic). So much for the land of the free. We are all serfs now. – H.L o o o Items from Professor Preponomics: US News The Fed Passes the Buck: Blame Oil and China (Mises) This is a highly recommended reading and an outstanding discussion of money supply inflation. Excerpt: “What many people today call inflation or deflation is no longer the great increase or decrease in the supply of money, but …

Items from Mr. Econocobas: Norway’s Biggest Bank Demands Cash Ban – This call for capital controls is not likely to go away; hedge yourself to the best of your ability. The Markets Are Backing Central Bankers Into a Corner – As you are well aware, and plenty of folks have been saying for a long while, QE and other central bank interventions are a monetary roach motel. You can never check out. Items from Professor Preponomics: US News Waste-O-Meter: GOP Lawmakers Create Meter to Target “Wasteful” Government Spending (The Providence Journal) In an attempt to tackle the problem of “out …

Nearly $8 trillion wiped off world stocks in January, U.S. recession chances rising: BAML – B.B. o o o Items from Mr. Econocobas: David Stockman- 700 Days In No Man’s Land – Why They Can’t Keep It Up Venezuela Default Imminent Items from Professor Preponomics: US News Moody’s Puts 175 Energy and Mining Companies on Downgrade Watch (Financial Times) Excerpt: “Several of the world’s biggest oil and gas groups— including Royal Dutch Shell, Total and Chesapeake Energy— are among 175 energy and mining companies at risk of rating downgrades following a collapse in crude and other commodities markets….” Bonner: The …

Strange and Crazy in the Financial World! o o o Reader B.B. Sent in this article: New Arizona Bill Would Give Tax Break To Gun Owners HJL’s Comment: While it seems at first glance that this bill is a good thing, a deeper look reveals that it is not. On July 29, 2010, Arizona’s Constitutional carry law went into effect. This means that if you are legally able to own a firearm and you are 21 years of age or older, you can carry concealed in the State of Arizona without a concealed weapons permit. (You still have to abide …

Mason jars in the backyard better than the markets for now – D.S. o o o San Francisco housing mania: Badly charred home that is uninhabitable sells for $186,000 over asking price.. In the S.F. Bay Area, the Housing Bubble now includes Rubble. What madness! – JWR o o o Items from Professor Preponomics: US News Big Banks Brace for Oil Loans to Implode (CNN Money) Excerpt: “The oil crash has already caused 42 North American oil companies to file for bankruptcy since the beginning of 2015, according to a list compiled by Houston law firm Haynes and Boone. It’s …

The U.S. Is At The Center Of The Global Economic Meltdown – D.R. o o o Items from Mr. Econocobas: World faces wave of epic debt defaults, fears central bank veteran – Folks on the inside are starting to let it out. These are very interesting times; stay alert. Items from Professor Preponomics: US News Stocks Drop as Oil Prices Tumble (Fox Business) Excerpt: “…the International Energy Agency on Tuesday said it expects excess supply to keep the oil market oversupplied through late this year, which the IEA said could make 2016 the third-consecutive year of supply exceeding demand by …

As this “Recovery” trudges on, the numbers are starting to become known. SurvivalBlog reader B.B. sent in this link showing that Americans are giving up on jobs. “As many as 40% of capable Americans without a job have completely given up looking for work” o o o Why U.S. Retail Sales Ended 2015 Poorly – RBS o o o Items from Professor Preponomics: US News More Pain Seen Ahead for US Banks Exposed to Energy Loans (Yahoo) Excerpt: “”Everybody was hoping for a bounce through most of last year and it hasn’t materialized so I think both the regulators and …

Italian banks are being squeezed at the margins. Some analysts anticipate more turbulence. “Analysts say stimulus measures by the European Central Bank have helped an economic recovery but have the side effect of putting bank margins under pressure.” 2 Italy Bank Stocks Plunge, Brokers Say Prepare for Tough 2016 – T.A. o o o China to spark financial ICE AGE with depression, says Societe Generale bear analyst – B.B. o o o Items from Professor Preponomics: US News Is Eating a Cinnamon Roll Irrational? (Mises) Who knows what’s best for you? Excerpt: “…in criticizing information asymmetry in markets, they are …

Brandon Smith: The Advantages of Barter and Localism. Something that we all need to be good at in the coming crisis. o o o The Deflation Monster Has Arrived – G.G. o o o Items from Professor Preponomics: US News Credit Crunch Could Be Worse that the Housing Crisis (CNBC) Excerpt: “Oil and gas companies borrowed heavily when oil prices were soaring above $70 a barrel. But in the past 24 months, they’ve seen their values and cash flows erode ferociously as oil prices plunge — and that’s made it hard for some to pay back that debt. This could …

Puerto Rico ‘in midst of economic collapse’ – G.G. o o o Keith Neumeyer – Triple Digit Silver Is Coming – The Daily Coin o o o Items from Professor Preponomics: US News Evidence Mounting that the Fed Made a Mistake (Washington Examiner) In light of the decisions made across many years involving everything from monetary and fiscal policy to international trade and other global financial agreements, it could easily be argued that any Fed decision at this point would have produced adverse consequences. The take home message may be that there is no easy way out of the economic …

Dow slides 391; oil and China drops rattle investors (Warning: Auto-starting video) o o o Items from Mr. Econocobas: A Recession Worse Than 2008 is Coming – Don’t pay much attention to the video, as it is not related to article.. Retail Sales in U.S. Decrease to End Weakest Year Since 2009 Bill Gross’ Advice To Traders As Stocks Crash Items from Professor Preponomics: US News Stocks Get Crushed (Business Insider) U.S. markets will be closed on Monday for Martin Luther King Day, although we will see additional trading activity in other parts of the world which should offer some …