Category: Economics & Investing

The Subprime Auto Loan Meltdown Is Here – Sent in by RBS o o o Japan’s Negative Interest Rates Are Driving up Sales of Safes – Sent in by G.P. o o o Items from Professor Preponomics: US News Central Banks Should Stop Paying Interest on Reserves (Mises) Excerpt: “In 2008, the Federal Reserve began paying interest on reserve balances held on deposit at the Fed. It took more than seven decades from the US leaving the gold standard — in 1933 — for the fiat regime to do this and thus revoke a cardinal element of the old gold-based …

Student debt apocalypse: Median wages up 1.6% over last 25 years while median student debt is up 163.8%. o o o Bracken: Burning Down the House in 2016. Commentary: This article from Western Rifle Shooters Association has a lot of economic content and is well-written and hard-hitting. Warning: Some of the comments posted after the article contain racial references I found somewhat offensive, unnecessary and inappropriate. Sites that include open commentary are vulnerable to this. With this in mind, the article itself was a worthwhile read. – Submitted by K.F. o o o Items from Professor Preponomics: US News The …

It Has Begun! Excerpt: “The process of discovering true value has begun, as indicated by the decline in the S&P, decline in the Shanghai Index, rise in gold stocks, rise in gold, and rise in silver. Expect it to continue.” o o o We normally stay away from “zombies”, but this one is too good to pass up: No Way Out – B.B. o o o Items from Professor Preponomics: US News US Consumers Can’t Save the World Economy (Business Insider) Excerpt: “Consumption-led growth will help the U.S. economy expand by 2–2.5% again this year,” wrote Quinlan. “That’s good but …

Adidas’s $600-a-year subscription for workout clothes is testing the limits of a big shopping trend. Several observations here: Have we really reached a point in society where we have more money than time? Then we have become a slave to money even more so. Back in the day, people valued their money over their time; they typically tried to fix broken things or would innovate with what they had or could find. Find a Popular Mechanics from the 1930’s and see how it’s full of ideas of how to fix or make things. In the process, we were a whole …

The Chilling Ways The Current Global Economy Echoes The 1930s Depression Era – Sent in by B.B. o o o Music to my ears! The War On Cash Is Irrelevant If You Own Gold And Silver – D.S. o o o Items from Professor Preponomics: US News Lawmakers Ask Treasury to Probe Chinese Purchase of Chicago Exchange (Washington Examiner) Excerpt: “It is outrageous that a communist Chinese company — a front for the communist Chinese government — will be given access to trillions of dollars in the struggling U.S. economy and secure information about U.S. businesses. I strongly urge the …

Kmart gets into the liquidation business. Why be surprised? The entire company is going bankrupt. Why not take somebody else’s unwanted garbage along for the ride. – RBS o o o Items from Mr. Econocobas: You Are Here – I am not a chart expert by any means, but this is worth a quick peek. Negative Rates Are a ‘Dangerous Experiment’, Warns Morgan Stanley Items from Professor Preponomics: US News Regulator: Feds Face Rising Risks for Managing Fannie, Freddie (Washington Examiner) Excerpt: “The current situation is unsustainable, Watt said, not only because of the lack of capital at the two …

Why OPEC Production Freeze Could Pave The Way For Actual Cuts o o o More indoctrination of our kids. “Ultimate Banking” Monopoly Edition Goes Completely Cashless – L.P. o o o Items from Professor Preponomics: US News Why Negative Interest Rates Will Fail (Mises) Excerpt: “…there is an old adage: you can bring a horse to water but you cannot make him drink! With the world economy sinking into recession, few banks have credit-worthy customers and many banks are having difficulties collecting on existing loans.” Percent of Total Wealth Owned in the United States: Bottom 40% Control -0.9% Meaning Close …

The War On Paper Currency Begins: ECB Votes To “Scrap” 500 Euro Bill – G.G. “Draghi: any ECB action on EU500 note is not about reducing cash. Translation: the ECB action is only about reducing physical cash, some 30% of it to be specific.” o o o Central bankers ‘don’t have a clue’ – Jim Rogers – G.G. o o o When Cash Is Outlawed… Only Outlaws Will Have Cash– Sent in by D.S. o o o Percent of Total Wealth Owned in the United States: Bottom 40% control -0.9% Meaning Close to Half the Country has a Negative Net …

Items from Mr. Econocobas: Larry Summers Launches The War On Paper Money: “It’s Time To Kill The $100 Bill” – This is going to keep being in the public sphere, because I believe it gets us used to the idea. With NIRP banning cash is almost a necessity even though it is not without many consequences. Here’s Why (And How) The Government Will ‘Borrow’ Your Retirement Savings – This is not a new idea even for the U.S., but it is a Rubicon to still be crossed. The Return Of Crisis – From Chris Martenson at Peak Prosperity, as always …

Deranged Central Bankers Blowing Up The World – S.Q. o o o Financial Crisis 2016: High Yield Debt Tells Us That Just About EVERYTHING Is About To Collapse o o o Items from Professor Preponomics: US News What Energy Bankers are REALLY Saying: “We are looking to save ourselves now!” (Zero Hedge) Excerpt: “…anyone holding out for a big push higher across energy equities as a result of a wave of distressed equity M&A can give up: according to Credit Suisse the next wave of mergers will take place via ‘debt negotiations’, not equity buyout offers….” Warning: Commentary following the …

Fingerprints for Food: Venezuela Rolls Out New Plan to Keep Shelves Stocked. “…critics warn that the scheme — which is not mandatory for the moment — will be one more way for the state to keep tabs on the population, or might be a precursor to rationing.” Submitted by T.A. o o o ‘Look out, we are heading for a crash again’, warns William White, the central banker who predicted 2008 crisis – G.G. o o o Items from Professor Preponomics: US News Food Stamp Beneficiaries Exceed 45M for 55 Straight Months (Washington Free Beacon) Excerpt: “The USDA has been …

Alternate Unemployment Charts 25percent sound good – B.B. o o o The world can’t afford another financial crash – it could destroy capitalism as we know it – S.B. o o o Items from Professor Preponomics: US News Four Horsemen of the Economic Apocalypse (Business Insider) Excerpt: “It’s getting impossible to ignore all the risks… We know how leveraged banks are… If they get in trouble, then that money is gone. People have been avoiding thinking about it.” Yellen’s Dilemma: A Downturn with No Easy Response (Reuters) No right answer, and there’s no way out. In my opinion, there were …

Venezuela’s Collapse Brings ‘Savage Suffering’ – Submitted by P.S. o o o Items from Mr. Econocobas: Welcome To Obama’s Recovery: Carrier Moving 1400 Jobs To Mexico | Zero Hedge Items from Professor Preponomics: US News How Negative Interest Rates Could Remake the Global Financial System (New York Times) Excerpt: “A decade ago, negative interest rates were a theoretical curiosity that economists would discuss almost as a parlor game. Two years ago, it began showing up as an unconventional step that a few small countries considered. Now, it is the stated policy of some of the most powerful global central banks….” …

Genius: FATCA has brought in just $13.5 billion in revenue on a cost of $1 trillion o o o Items from Mr. Econocobas: Investors ‘Go Bananas’ for Gold Bars as Global Stock Markets Tumble – Getting more serious by the day. Yellen on Negative Rates: ‘We Wouldn’t Take Those Off the Table’ – You bet your biscuits, negative rates are not off the table. However, they have painted themselves in a corner, without an “event” that provides the cover to say, “Well things were going great until XYZ event, which was totally unforeseen and unpredictable.” Items from Professor Preponomics: US …

What does Wal-Mart owe the towns it leaves? 9 experts weigh in – There are a variety of opinions, but the bottom line really is that Walmart does not owe the community anything. Smaller businesses were driven under because the community chose to save a few bucks. It is the community itself that bears the responsibility. – RBS o o o CEO of shipping giant Maersk says economy is “worse than 2008” TRUNEWS with Rick Wiles – RBS o o o Items from Professor Preponomics: US News Fed’s Yellen Says Global Risks Could Pose US Growth Threats (Reuters) Excerpt: “But …