Category: Economics & Investing

I have long been of the opinion that the Fed has backed itself into a corner with interest rates near 0%. Such low interest rates only serve to encourage the borrowing, adding to the unwieldy national debt. With the interest rates so low, the debt may be currently serviceable, but if the rates are raised, I question whether or not the debt load can be serviced at all. After Yellen announced a 0.25% rate hike, I queried Professor Preponomics on what in the world Yellen was thinking. I believe SurvivalBlog readers will be very interested in the answer. – HJL …

Something Broke In The U.S. Silver Market o o o Here is a new interview done with Jeff Berwick regarding current and upcoming events. o o o Items from Professor Preponomics: U.S. News Sell the Bonds, Sell the House, Dread the Fed (Contra Corner) Article Quote: “There is going to be carnage in the casino…” …and from one of the comments at the end: “As the pilot told the passengers after lightning struck the plane and fried all of its instrumentation: “I’ve got some bad news and some good news. First, the bad news. We have no idea where we …

Something Strange Is Taking Place In The Middle Of The Atlantic Ocean – Sent in by J.C. o o o Baltic Dry Crashes To New Record Low As China “Demand Is Collapsing” – Sent in by G.G. o o o Items from Professor Preponomics: U.S. News Fed Betting It Will Avoid Central Bank Errors of the Past (CNS News) Commentary: The Fed’s 1937 error, Japan’s lost decades, Europe’s dubious hikes… A stroll down a less than pleasant version of memory lane. Time will unfold the story about whether or not the current quarter point rate hike was the right Federal …

Items from Mr. Econocobas: Bitcoin Or Gold: Did The Alleged Bitcoin Creator Just Settle Once And For All What Is More Valuable? David Stockman: December 16, 2015—–When The End Of The Bubble Begins What Benefits To Savers? Banks Rush To Hike Prime Rate To 3.50%, Forget To Increase Deposit Rate Items from Professor Preponomics: U.S. News All eyes are on the FED… Fed’s Historic Liftoff and Everything After: Decision Day Guide(Bloomberg Business) “Economists and traders expect the first interest rate increase since 2006, marking the beginning of the end for the unprecedented era of easy monetary policy. The move would …

Big Banks Caught Using Credit Default Swaps To Destroy Nations o o o Silver: Until Paper Currencies Stop Losing Value o o o Items from Professor Preponomics: U.S. News Janet Yellen: An Orthodox Economist in Unorthodox Times (Reuters) Commentary: Brief, easily readable, a good overview as we approach the coming announcement with the Federal Reserve’s decision regarding a rate hike. This article revisits the idea that old models may no longer work to evaluate current conditions and the uncertain environment in which decisions will be made. Fannie and Freddie’s Propoganda War (Wall Street Journal) Bubble Watch: No Down Payment Jumbo …

The American Dream Is Over o o o G.G. sent in a link showing what happens when you keep kicking the can down the road: Stocks are more overvalued now than at 2000 and 2007 peaks o o o Items from Professor Preponomics: U.S. News The Dreary Utopia of the Socialists (Mises Institute) Report: Government Wastes Billions as National Debt Approaches $19T (Judicial Watch) Excerpt: “The federal government spent more than $65,000 to study what happens if someone turns on a light at night in a rural area. Anyone raised in a rural area can attest that one way to …

Peter Schiff Exposes The Real Problem Facing The Fed – Link sent in by B.B. o o o Millennials will not save the housing market: 50 percent of Millennials have less than $1,000 in savings. A large number are mired in student debt. o o o Items from Professor Preponomics: U.S. News High Impact Market Possibilities After First Federal Reserve Rate Hike (24/7 Wall Street) Article Quote: “One very good thing about history is it is always there when you need to review how an economic event could play out against the existing landscape for investing.” A Top JP Morgan …

In this age of increasing federal overreach, one can feel the hand of the government perhaps more than any other time in our albeit short history as a nation.  Thanks to criminal actions from bureaucrats, constitutional violations such as the Patriot Act have become the new law, eroding our liberties on this soil with each passing day, much like a sand dune standing against a series of crashing waves. So here we are.  What do we do now?  Some are taking action against the system.  Some want to peacefully non-comply just enough to not be thrown into a cage.  It …

SRSROCCO REPORT: U.S. Ponzi Scheme & Peak Silver o o o An anonymous short-seller called a company a ‘Ponzi-like real-estate scheme’ and the stock has crashed 65% o o o Items from Professor Preponomics: U.S. News Fed “Stimulus” Has Made Inequality Worse, Hurt Economic Growth (Cato Institute) Article Quote: “…Fed policy has contributed to the rise in income inequality in this country. It has also resulted in misallocation of capital in ways that will only be fully discovered when the policy is reversed.” High-Yield Hedge Fund Stops Redemptions (WSJ via CNBC) Quote: “Icahn, an activist investor, also renewed his repeated …

Living A Lie How much debt?! – Sent in by B.B. o o o Why A Major Deflationary Financial Crisis Is Imminent o o o Items from Professor Preponomics: U.S. News Why Gold-Backed Money Doesn’t Bring Booms and Busts (Mises Institute) Zombies Appear in U.S. Oilfields as Crude Plumbs New Lows (Reuters) Article Quote: “The slump has created dozens of oil and gas “zombies,” a term lawyers and restructuring advisers use to describe companies that have just enough money to pay interest on mountains of debt but not enough to drill enough new wells to replace older ones that are …

SurvivalBlog reader WMJ writes in: “It’s been a while since I’ve gotten a roll of dollars from the local credit union, and I found myself in for something of a shock. I gave the teller USD 25 and asked for a roll of quarters. She didn’t have a roll in her till and went to grab one from the safe. When she got back I was asked for my account number. I thought it odd but gave it to her. While she was pulling up my account I asked why I couldn’t just swap cash for cash. She demurred somewhat. …

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 November? Gold fell prey to the Fed and its pet monster the dollar in November. A huge non-farm payrolls report on November 6th set the tone for commodities for the rest of the month. Traders took much better than expected non-farm payrolls as pretty much a guarantee that the Fed would raise rates from near-zero at …

Dishonest Money Will Die – I Hope o o o Collapse Of U.S. Shale Oil Production Has Begun o o o Items from Professor Preponomics: U.S. News Senator Jeff Flake’s New Report – Waste Book 2015: The Farce Awakens (Citizens Against Government Waste) Hint: You’ll not believe this report on the darker side of government spending, from the $1M NIH study involving monkeys in hamster balls riding on treadmills to $210,000 in a Department of Agriculture subsidy for solar powered beer. …and a suggestion: Send a message of thanks to Senator Jeff Flake for his efforts in this regard. …and …

Greeks Must Declare Non-Bank, Personal Assets – Who’s Next? I fully expect a high level of noncompliance with this edict, but being caught in violation of it can have serious consequences. It is also disturbing to note that we have watched this crises unfold in Greece and then watched our legislators prep the legislation for the same sort of governmental action here. o o o Items from Mr. Econocobas: Canada Just Warned That Negative Interest Rates Are Coming Morgan Stanley’s Christmas Present To 1,200 Of Its Best-Paid Employees: Pink Slips Items from Professor Preponomics: U.S. News Global Joblessness, the Real …

Peter Schiff Warns: “The Whole Economy Has Imploded… Collapse Is Coming” – Link sent in by B.B. o o o First GM China-Made Import to U.S. Scheduled to Begin Sale in 2016 – RBS o o o Items from Professor Preponomics: U.S. News Beleagured Wal-Mart Sues Broke Puerto Rico (Zero Hedge) Article Quote: “It’s always amusing when unforeseen circumstances conspire to bring two previously disparate stories together in one hilarious boondoggle.” No, “Big Data” Can’t Predict the Future (Mises Institute) Article Quote and a Thought: “In the social sciences we’re dealing with complex phenomena. Action and, especially, its outcome is …