Category: Economics & Investing

SurvivalBlog reader G.P. sent in this link to Town Hall explaining why central banks are accepting the risks of super-low rates. o o o Items from the Economics Team: 5 Minimalist Secrets to Saving Money (Simplicity Relished) China’s Fix for Falling Profits is Only Making Things Worse (Business Insider) The Data Isn’t Good: U.S. Companies Warn Recession is Coming (Zero Hedge) The Fed Can’t Raise Rates…But Must Pretend It Will (Mises Institute) 3M Plans to Cut 1,500 Jobs (Bloomberg Business) Weatherford International Plans 3,000 More Job Cuts by End of 2015 (Fuel Fix) o o o Items from Mr. Econocobas: …

SurvivalBlog reader P.S. sent in a link to the US 2014 wage statistics. Basically: If you’re making $30K, you are in the 51st percentile. In other words, 51% of the U.S. population is making the same or less than you. If you’re making $60K, you are in the 81st percentile. If you’re making $90K, you are in the 90th percentile. If you’re making $125K, you are in the 95th percentile. A 1 percenter would be making $250K or more, putting them in the 99th percentile. There are approximately 1.1M people who made between $250K and $500K in 2014. A 0.1 …

Here is a sobering fact about Millennials, the largest cohort behind baby boomers: half of Millennials are living at home with their parents. Another 28 million Millennials are not in school and are working in jobs that pay $10,000 a year or less: Half of Millennials live at home with parents: The economy still feels like it is in a deep recession for millions of Millennials. And this group is supposedly the group that is going to relaunch the American economy. o o o Items from the Economics Team: Rick Rule, Doug Casey: “Severe But Survivable” Reckoning Ahead For The …

SurvivalBlog reader CPL sent in the link showing IRS inflation adjustments for 2016 taxes. o o o Items from the Economics Team: China Cuts Rates for 6th Time Since November (Fox Business) Reflections on Venezuela’s Economic Miracle (Mises Institute) Hint: Don’t expect a follow up from Salon Wall Street Investment Banks may be about to Lose one of their Best Customers (Business Insider) Hint: Banks have been cashing in on the price of your prescriptions in a big way for a long time! Why China’s Rate Cut Won’t Slow Its Economic Decline (Zero Hedge) Hint: The cake has already been …

SurvivalBlog reader sent in this article about Russia’s response to the oil crises and sanctions: Russia retreats to autarky as poverty looms Items from the Economics Team: China: Red Capitalism is the New Black Swan (Zero Hedge) U.S. Pensions Slowing Waking Up to Risk (Reuters) The Two Income Trap and the Myth of High Wages (My Budget 360) Puerto Rico: Another Bailout Coming (Zero Hedge) o o o Items from Mr. Econocobas: Peak Prosperity – Has The Market Trend Shifted From Bull To Bear? Debt Prioritization Bill Comes to a Vote as Borrowing Limit Looms – Every time the “debt …

More Evidence That The Middle Class In America Is Dying o o o JWR has been warning about this for years: $1.5 Quadrillion Derivatives Bomb And The Great Financial Disaster Sent in by RBS o o o Items from the Economics Team: 10 Signs You’re Not as Rich as You Could Be (Huffington Post) Dear Dave & Teaching Teens to Budget (Dave Ramsey) 18 Tips for Extreme Penny Pinching (Life Hack) Saudi Arabia Broke In 5 Years? (Zero Hedge) \

Sent in by T.P. Bank’s severance deal requires IT workers to be “on call” for two years Then, of course, the question becomes “how do you enforce the terms of the deal?” o o o SurvivalBlog reader B.B. sent in this article showing a comparison of age/savings/expectations: Confusion, Delusions & Illusions o o o Items from the Economics Team: 52 Ways to Save $100 Per Year (Money Saving Mom) Hint: Scroll Down and You’ll Discover Links for the Weekly Installment Articles Governor of the Bank of Italy Investigated for Fraud and Corruption (Business Insider) Writing is on the Wall for …

Items from The Economics Team: In Latest Humiliation For Illinois, Fitch Downgrades State’s Credit Rating To BBB+ (Zerohedge) Tennessee County Closes Schools, a Casualty of the Cost of Obamacare (The Tennessean) People want to spend money, even money they don’t have… (My budget 360) Robert Shiller is Shilling for Socialism (Mises Institute) Saudi Arabia Delays Contractor Payments to Preserve Cash (Zero Hedge) Can Charter Schools and Suburbanites Reverse Chicago’s Economic Woes? (George Will via LenConnect) o o o Items from Mr. Econocobas: Death of a Patriot at the Hands of Corrupt Government – Irwin Schiff WalMart Suppliers Brace For The …

SurvivalBlog reader sent in this link: L. TODD WOOD: The day China says its currency is backed by gold (Washingtion Times) o o o Meanwhile, China’s Selling Tons of U.S. Debt. Americans Couldn’t Care Less. (Bloomberg) Sent in by G.P.) o o o Items from the Economics Team: US banks build defenses against downturn (Financial Times – Requires login) Obamacare’s Latest Casualty: Largest Colorado Exchange Abruptly Collapses (Zero Hedge) Public Remains Wary of Federal Government’s Power (Gallup)

This Is How Bad It Is: “The World Must Create 5 Million Jobs a Month Just to Prevent the Situation from Getting Worse” (SHTF Plan) Sent in by B.B. o o o Items from The Economics Team: Signal of Global Trade Collapse Coming From India (Zero Hedge) The Scoop on When You Can Expect Your Stuff to Break (Frugal Living) Glencore Watch: Glencore Plans More Debt Cuts (Wall Street Journal) Bank Securities Analysts Cheating on Tests? It can’t be! (Bloomberg) Rich Nations Lose Emerging Markets Motor (Wall Street Journal) This is an interesting article (and short read) which should give …

SurvivalBlog reader B.B. sent in this jewel of an article calling the economy what it is: Ignore The Media Bullsh*T – Retail Implosion Proves We Are In Recession (The Burning Platform) o o o Dollar Death Sentence (Daily Reckoning) Sent in by G.G. on the Economics Team. o o o The Brutal Reality of Municipal Bankruptcy: Vallejo, California (Huffington Post) Puerto Rico’s Severe Financial Crisis (The Puerto Rico Report) Signal of Global Trade Collapse Coming From India (Zero Hedge) Sent in by T.A. on the Economics Team. Items from Mr. Econocobas: Biggest US Debt Sell-Off In 15 Years Capitalism Explained …

B.B. sent in this article: 77.5 Million Households Are Not Paying Federal Income Taxes (CNBC) o o o D.S. informs us that Illinois to Postpone Pension Payments “We Are out of Money Now” (The Daily Sheeple) o o o From the Economics Team: Wal-Mart Tumbles Most in 15 Years After Predicting Profit Slump (Bloomberg) Hyperinflating Argentina Forces Government To Increase Banknote Denomination (Zerohedge) Repossessions spike 66% as foreclosure crisis lingers (CNBC) Sanders and His Followers are NOT Outliers (Mises Institute)

B.B. sent us this gem from Zero Hedge: The Problem Explained In 110 Words o o o R.V. spotted this: US Banks Build Defenses Against Downturn. R.V.’s comment: In spite of the title, the article is actually about how banks have taken down loan loss reserves to bolster profit, not about how they have increased the reserves. If I reduce the loan loss reserve, I have to back out the previously recognized expense, which has the effect of increasing profit. So if I increase my loan loss reserve, it is an expense, which would lower profit and reduce assets (loans …

Tesla Model X Buyers Get $35,000 Tax Break o o o The Fed Just “Discovered” Another $2.7 Trillion In Debt: “Quietly Boosted Total Credit” o o o Items from The Economics Team: Fed Quietly Raises Debt to 350% of GDP (Zero Hedge) China is Becoming a Big Red Flag for U.S. Stocks (Market Watch) The Greek Crisis (GreekCrisis.net)