Category: Economics & Investing

Economics and Investing:

California renter apocalypse: Why the rise in housing values is a reflection of a disappearing middle class. California rents up 5.7 percent last year. o o o Will Lehr: Jim Willie Interview o o o Items from Professor Preponomics: US News Fed’s “Accommodation” Outrun by Tightening Credit (Reuters) Excerpt: “Judging by recent market action and what’s happening in many economies around the world, it is an appropriate time to take recession risks seriously….” The Cozy Relationship Between the Treasury and the Fed (Mises) Excerpt: “Since the Fed does not exist to generate profits, some may be confused as to how …


Economics and Investing:

Ann Barnhardt on a Personal Update and Negative Interest Rates: Highway to a Cashless, Statist Hell. o o o ‘New Money’ Powers PayPal’s Super Bowl Push – another step in herding the sheep towards a cashless society. Submitted by RBS. o o o Items from Professor Preponomics: US News The Velocity of Money (American Thinker) An interesting conversation about the velocity of money and its implications for the economy. I would add that in addition to an unwillingness to spend through the system at the level of the individual consumer or household, there are structural constraints also in play. Excerpt: …


Economics and Investing:

World Going into Nasty Depression-Hugo Salinas Price – B.B. o o o Hard times if you’re a business owner (or an employee) and part of your business relies on the State of Illinois. State of IL is $10B past due paying vendors – P.S. o o o Items from Professor Preponomics: US News How Free Electricity Helped Dig $9B Hole in Puerto Rico (New York Times) Excerpt: “Now, however, the island’s government is running out of cash, facing a total debt of $72 billion and already defaulting on some bonds — and an effort is underway to limit the free …


A Forecast For 2016 and Beyond: Will America’s Cascading Collapse Finally Unfold?

Through their Zero Interest Rate Policy (ZIRP) and Quantitative Easing (QE), the Federal Reserve (“The Fed’) private banking cartel and the U.S. Treasury have conspired to rig the system. They have artificially suspended the boom-bust business cycle for the past seven years, but now, with interest rates finally rising, they’ve run out of their “smoke and mirrors” tricks. We’ve just had the appearance of an economic recovery, when no genuine structural recovery has actually occurred. Just a tiny 25 Basis Points (0.25% ) rise in the Fed Funds Rate in December 2015 caused a near full-scale collapse of the stock …


Economics and Investing:

The Fed Wants to Test How Banks Would Handle Negative Rates o o o Items from Mr. Econocobas: Oilpocalypse Wow! Stocks, Bond Yields Plunge As Bank Risk Soars Negative Interest Rates Already In Fed’s Official Scenario – This is a little wordy…. BP to Cut 7,000 Jobs after Posting Huge Loss Items from Professor Preponomics: US News National Debt Hits $19T (Washington Examiner) Excerpt: “Under current law, the debt ceiling is suspended until March, 2017, meaning the government can borrow without limit until then. Obama is expected to leave office with a total national debt of nearly $20 trillion by …


Letter Re: China In Perspective

HJL, I heard the investment officer of a life insurance company speak this weekend. He characterized China as having accomplished what they set out to accomplish, creating infrastructure on a scale that took us 75 years, in only fifteen. We are placing our value system on their decisions and wonder how they are going to get things to pay off or out in three years. They don’t care. We of the west assumed there was a trend that was more of a trajectory. Their activity level will now travel back to the mean as will all the commodity prices of …


Economics and Investing:

Video: 2016 Market Crash Explained In One Chart – Mike Maloney o o o Retail Apocalypse: 2016 Brings Empty Shelves And Store Closings All Across America o o o Items from Professor Preponomics: US News So It Begins: Bloomberg Op-Ed Calls for an End of Cash (Zero Hedge) Excerpt: “For those who were amused by our warning that a cashless world may be coming, here is precisely why the warning was issued, in Bloomberg’s digital ink…” Read on. Warning: Article commentary may contain bad language or inappropriate avatar images. Barclays, Credit Suisse to Strike Record Deals with SEC, NY Over …


Letter Re: Digital Currency

Hugh, Here are a few additional comments about Bitcoin that might be of interest to SurvivalBlog readers: Bitcoin is the best bet for digital currency that’s outside the banking system; it has the largest market cap and network of developers/miners. There is no Know Your Customer or Anti-Money Laundering with Bitcoin, which means you don’t need to show any ID to get it if you buy it in person. In the U.S., the Bank Secrecy Act, Patriot Act, and other bank/money-related U.S. laws keep Bitcoin from being a legally compliant currency. As these laws are written, they also apply to …


Economics and Investing:

Venezuela is on the brink of a complete economic collapse – G.G. o o o Baltic Dry Index Falls to 325, 1,430 Vessels Need to be Laid Up to Restore Balance – B.B. o o o Items from Professor Preponomics: US News 70% See American Dream Out of Reach (Washington Examiner) Herein lies a substantial portion of the problem. People do not see solutions coming from within themselves, and so they seek solutions through government. Excerpt: “The current political environment has voters thinking the federal government is an ineffective mess that is causing more harm than good. However, they still …


January in Precious Metals, by Steven Cochran of Gainesville Coins

Welcome to SurvivalBlog’s Precious Metals Month in Review, by Steven Cochran of Gainsesville Coins 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 January? Gold started the year around the $1,061 mark and quickly blew that away as stocks worldwide saw the worst start to a year in nearly forever. This caught a record number of speculators short, who had to scramble to cover their bets. By the 7th of January, gold had …


Economics and Investing:

How Do You Know When Your Society Is In The Midst Of Collapse? o o o Unsocial Insecurity: Social Security Fund loses money for the first time since 1983. The new retirement model will have you working until you fall over from a heart attack. o o o Items from Professor Preponomics: US News Are Government Regulators More Virtuous than Everyone Else? (Mises) Excerpt: “One can’t help but notice the central contradiction in this analysis. On the one hand, it is assumed that markets fail because of “normal human weakness.” On the other hand, it is assumed that regulation, which …


Economics and Investing:

Items from Mr. Econocobas: Bank of Japan Goes Negative on Interest Rates – NIRP as it is called has now officially spread to Japan, joining most of the Euro zone. Stocks End Up 2% After BOJ Move; Nasdaq Still Posts Worst Month Since ’10 Advance Q4 GDP Data, 0.7% – The video is worth watching and listening to as well; expectations for 2016 GDP is the lowest in many years. Items from Professor Preponomics: US News The Market Doesn’t Solve Problems; People Do (Mises) Excerpt: “The modern state can be defined as the institution that pretends to have the monopoly …


Economics and Investing:

The Shipping News Says the World Economy Is Toast – G.G. o o o IMF and World Bank move to forestall oil-led defaults – G.G. o o o Items from Professor Preponomics: US News Fed Included Phrase About International Developments (Business Insider) No right answer. No easy way out. Excerpt: “…it looks like the Fed is once again eyeing what’s happening abroad as it is materially affecting businesses that make up the US economy.” Updated Wasteful Spending Ratings Unveiled for 2016 Presidential Candidates (Citizens Against Government Waste) Excerpt: “With the beginning of the presidential caucuses and primaries just one week …


Digital Currency: The Key Tool of 21st Century Monolithic Nanny State Tyranny

There has been talk of doing away with paper currency for several decades, but up until now that has mostly been idle conjecture and mostly bluster. Gradually, however, the building blocks of such a system have indeed been developed. These enabling technologies include: Credit cards Debit cards Postal meters Credit and debit card enabled pay phones Credit and debit card enabled vending machines Credit and debit card enabled “pay before you exit” parking garage kiosks Grocery and warehouse store “member” cards Automated bank account and wage garnishment by the IRS Automated child support and alimony payments Transnational debit cards with …


Economics and 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 …