Category: Economics & Investing

Maybe Valuations Do Matter – J.Q. o o o Audit the Fed Legislation Sinks: Plan Accordingly This article, sent in by C.T., should run right along side that one: Vote to Audit the Federal Reserve, guess who didn’t vote? o o o Items from Professor Preponomics: U.S. News Puerto Rico’s Slide (Bloomberg) Excerpt: “Puerto Rico has the population of Oklahoma and a gross domestic product smaller than Kansas. It also has more debt— $70 billion— than any U.S. state government except California and New York. This fact and the reasons behind it help explain why the territory has tumbled over …

The International War On Cash – Sent in by G.G. o o o Reader H.L. sent in this depressing link: This is how much the average American investor made last year o o o Items from Professor Preponomics: US News Oil Plunge Sparks Bankruptcy Concerns – Energy Journal (Wall Street Journal Money Beat) Excerpt: “As many as a third of American oil-and-gas producers could flirt with bankruptcy and restructuring by the middle of next year unless oil prices stage a big rebound…” Is the Auto Loan Bubble Ready to Pop? (Mises Institute) Excerpt: “While the media claims that this record …

RBS cries ‘sell everything’ as deflationary crisis nears – G.G. o o o Record Numbers Of Retired Americans Are Working Part-Time Jobs – G.G. o o o Items from Professor Preponomics: US News All of the World’s Money and Markets in One Visualization (Visual Capitalist) An excellent (and terrifying) representation beginning with Bitcoin and ending with derivatives. Oil Could Fall to $20 but NOT for the Reason You Think (Market Watch) Excerpt: “While oil markets are undoubtedly oversupplied, after a certain point, deteriorating fundamentals have little to do with the price action. ‘Oversupply may have pushed oil prices under $60, …

“Unprecedented Demand” – US Mint Sells Nearly As Much Gold On First Day Of 2016 As All Of January 2015 – G.G. o o o Shipping Said to Have Ceased… Is the Worldwide Economy Grinding to a Halt? – B.B. o o o Items from Professor Preponomics: US News More Trouble Ahead for US Oil Industry (Houston Chronicle) Excerpt: “The tentacles of the energy sector run deeper in the US economy than most understand…” Why Sugar, Once a Big Business in Hawaii, is Disappearing (Christian Science Monitor) Excerpt: “The company hopes to shield itself from the vulnerability of a single …

A sobering, yet mind-blowing visualization of the world’s money: All of the World’s Money and Markets in One Visualization – Sent in by V.M. o o o U.S. Silver Production Drops Significantly Again In October… Has Peak Silver Arrived? o o o Items from Professor Preponomics: US News When the Salsa Stops (The Economist) Excerpt: “PUERTO RICO’S creditors have plenty to complain about, but they can’t claim they weren’t warned. Last June Alejandro García Padilla, the governor of America’s Caribbean outpost, announced that its $72 billion public debt was “unpayable”, and that a “unilateral and unplanned non-payment of obligations” loomed.” …

46 Months Of Accelerating Deflation Mean Beijing Is Now Trapped – JFJ o o o Apple has dumped $100B in market value in past month – RBS o o o Items from Mr. Econocobas: Study Finds Higher Minimum Wage Hurting Youth Employment – Not sure why they needed a study to realize this…. Puerto Rico Defaults on Debt Payments – Not sure how, but this news seemed largely ignored probably due to such market volatility Items from Professor Preponomics: US News End Injustices Now, Not Later (Mises Institute) Excerpt: “We’ve been robbing from Peter to pay Paul, and Paul’s taken …

Items from Mr. Econocobas: Dow Tumbles Nearly 400 Points on China Worries- Dow and S&P Off to Worse Start Ever – I would expect a relief rally very soon, otherwise I don’t see how we don’t get a serious intervention by world central banks. Silver Seen Beating Gold as Ratio Rises to Near Historical Peaks– And we are not even talking about the historical average of around 16:1. Most Americans are One Paycheck Away from the Street Items from Professor Preponomics: US News Watchdog Says Government Agencies Ignore Billions in Savings (Taxpayers for Common Sense) Excerpt: “Agencies have a “too …

GOLD & SILVER: Up In A Sea of Red… Get Used To Days Like This o o o The Bankers’ India Gold Grab o o o Items from Professor Preponomics: US News The “Services” Based Economy Delusion (Contra Corner) Excerpt: “In short, the service economy may well be doing fine, though I doubt it, but in the end it won’t be nearly enough to save anyone.” Macy’s to Cut Up To 4,800 Jobs After Weak Holiday Sales (ABC News) The real data is incoming no matter the tendency to blame the weather. Excerpt: “Macy’s said that unseasonably warm weather that …

Saudi Arabia is running out of money The cash crunch is so bad in Saudi Arabia that the government just hiked the price of gasoline by 50%. Yep, you read that right. Instead of paying the equivalent of $0.64USD for a gallon, they will now have to pay a whopping $0.96USD per gallon. – P.S. o o o Petro Currencies Under Fire As Oil Keeps Sliding o o o Items from Professor Preponomics: US News U.S. Shale Companies: Bankers are Quietly Tightening the Liquidity Noose (Zero Hedge) Watch out for the effects of possible liquidity triggers like this one. Excerpt: …

This may be a little hard to grasp, but it’s important to understand. Please read and take necessary precautions to protect your savings. Unimaginable 247 Trillion In Derivatives Could Trigger “Financial Armageddon”. Warren Buffett referred to derivatives as “financial weapons of mass destruction”… – L.G. Items from Mr. Econocobas: China Stocks Rout on First Market Day of 2016 Trips National Trading Halt China’s Seven-Minute Selling Frenzy That Shook Global Markets The Year Nothing Worked: Stocks, Bonds, Cash Go Nowhere Items from Professor Preponomics: US News Puerto Rico is Greece and These Five States are the Next to Go (Zero Hedge) …

Welcome to SurvivalBlog’s Precious Metals Month in Review, where we take a look at “the month that was” in precious metals. Each month, we cover the price action of gold and examine the “what” and “why” behind those numbers. What Did Gold Do in December? Every December is a time of thin volumes in all assets. One good-sized sale or purchase can move prices. All this was exaggerated by the Fed’s December 16 interest rate hike. Gold jumped $20 an ounce multiple times this month, only to see the gains slowly eaten away each time. December 4th was a strange …

Saudi-Iran Dispute Won’t Cause Lasting Oil Price Rally o o o Wall Street Journal: 7% Fall in the Chinese Market Triggered Closure for the Day – T.A. o o o Items from Professor Preponomics: US News Rand Paul: Here’s Why We Should Audit the Fed (Business Insider) Excerpt: “It is no secret that the Federal Reserve’s unchecked printing press causes recessions and increases income inequality. Allowing the Fed to inflate our money supply will artificially keep interests rates low, but at what cost? Their acts can no longer go unchecked…” The Rise of the Zombie Earmark (Taxpayers for Common Sense) …

FUTURE MONEY TRENDS: Silver Will Break $50 In 2016 o o o New Year begins with record number of men not in the labor force: Those not in the labor force increased by 1.9 million last year while the labor force increased by only 1.1 million. o o o Items from Professor Preponomics: US News New Year Begins with a Record Number of Men NOT In the Labor Force (My Budget 360) Excerpt: “Employment, income, and financial prosperity are the most important issues for Americans. It is ironic that in 2008 the election was driven largely by the economy. It …