Category: Economics & Investing

Gold Undervalued Due To Massive Stock Dilution & Debt o o o The Herd Is Heading For A Cliff – Sent in by J.Q. o o o Items from Professor Preponomics: US News Puerto Rico Avoids Loan Default by Dipping Into Cash Reserves (Washington Post) The real headline should be this statement from well within the article itself… ““The use of over $100 million in reserved funds to make debt service payments for several of the Commonwealth’s issuers should underscore that the Commonwealth is running out of options to pay its debt…” Brutal Economic Warning Sign from America’s Midwest (Business …

‘Cash has run out’: Debt-ridden Puerto Rico heads toward New Year’s default – RBS o o o Reader GP sent in a link to this map showing which states are in the red: Is Your State Busted Or Busting Loose? o o o Items from Professor Preponomics: US News The Formlessness of Progressivism (Mises Institute) Excerpt: “As vague and misty as most modern leftist ideals can be, they do share one solid, bedrock principle: the need for continuous expansion of the government’s role in our lives. The government’s heavy handed regulation of our industries has imposed unbelievable barriers and costs …

No Inflation, No Interest, No Recovery. Printing Money Enslaves the Middle Class – T.A. o o o $2,957,000,000: U.S. Taxpayers Will Fund Lion’s Share of UN Budget Again in 2016 – RBS o o o Items from Professor Preponomics: US News Puerto Rico is on the Brink of a BIG DEFAULT (CNN Money) From the Article: “I don’t take risks – at least I didn’t think I was taking a risk…” Commentary: This is a story that could easily repeat itself across the U.S., and there are lessons to be learned for everyone from this report. Many people are financially …

Debt distress level at highest since recession – GG o o o The death of the American pension: Shifting the retirement burden from employers to workers has created an enormous financial crisis. – RBS o o o Items from Professor Preponomics: U.S. News Millions in Fraud on Government Credit Cards (Waste Fraud and Abuse) Some waste is absurd, but the words disgusting and despicable come to mind over reports like this one. From the Article: “That law was inspired in part by a report earlier this year from the Defense Department finding that government credit card holders from across the …

The War against Cash, Part II – Sent in by G.G. o o o Your tax dollars at work, laundering illicit drug money: Bal Harbour to Caracas: Millions in drug money. One must ask: Cui bono? o o o Items from Professor Preponomics: U.S. News The Credit Crunch is Back: Banks Scramble to Collateralize Loans to Record Levels (Zero Hedge) Key Words are JUST IN CASE. From the Article: “… suddenly banks don’t want any risk from residual loan exposure which they can’t offload, and as a result are demanding companies pledge assets and otherwise collateralize whatever loans they issue …

The War against Cash, Part I – Sent in by G.G. o o o Negative Power Prices Highlight Some Regulatory Problems o o o Items from Professor Preponomics: U.S. News Report: Fed-Up Creditors Seek to Put US Energy’s Zombies Into Bankruptcy (Reuters) From the Article: “Rising financial stress in the U.S. energy sector has prompted some suppliers and vendors to take unusual legal action to collect unpaid debts: forcing struggling companies with billions of dollars in debt into bankruptcy.” International News The Commodities Party is Officially Over and “Now We are Suffering the Big Hangover” (Business Insider) Hint: There will …

In Sweden, a Cash-Free Future Nears – Sent in by G.G. o o o Items from Professor Preponomics: U.S. News Saving Puerto Rico from Itself (Wall Street Journal) From the Article: “After snowballing for decades, Puerto Rico’s debt problems have become an avalanche.” Economic Growth Slower Than Thought in the 3rd Quarter (Washington Examiner) But wait, there’s more… The Federal Reserve projects growth of just 2.4% in 2016. Biggest Economic Story of 2016: Inflation (Business Insider) The Fed has taken its strategic position: that inflation, rather than deflation, will be the greatest risk to the economy in the coming year. …

China establishes rival to World Bank. Sent in by G.G. o o o California cash sales surge while total sales volume plunges: Cash sales made up 30 percent of total sales last month. o o o Video: Egon von Greyerz – Bond Market Biggest Bubble in the World – Sent in by G.G. o o o Items from Professor Preponomics: U.S. News When Santa Was a Bank (Bloomberg) A Little Bit of History… “For much of the 19th century, Santa Claus had a branch office at No. 12 Wall Street. This was the “Saint Nicholas Bank,” established in 1853 and …

Russia Gold “Buying Spree” Continues; Buys 22 Tons In November o o o U.S. Exports More Gold To Hong Kong Than It Produces o o o Russia keeps pumping Could we see oil go below $30? – P.S. o o o Items from Professor Preponomics: U.S. News 50 Examples of Government Waste (Waste Fraud and Abuse) This truly sums up the problems at hand! Article Excerpt: “Reducing wasteful spending is not easy. Even the most useless programs are passionately supported by the armies of recipients, administrators, and lobbyists that benefit from their existence. Identifying inefficiencies and abuses is much easier …

Russia’s Central Bank Issues Crimea Banknote – Sent in by RBS o o o Items from Mr. Econocobas: Most Americans have less than $1,000 in savings Items from Professor Preponomics: U.S. News To Make the Payment is Almost Impossible: Puerto Rico Defaults (Again) in T-9 Days (Zero Hedge) Will Puerto Rico become America’s Greece? Inside the Billion-Dollar Battle for Puerto Rico’s Future (New York Times) From the Article: “Some warn that Puerto Rico could be a test case for the rest of the country, paving the way for troubled states like Illinois to escape unsustainable debts.” Existing Home Sales Fall …

Survey shows US is a nation of red retail and blue retail – Sent in by RBS o o o Congress’s $1.15 trillion spending bill: Heads they Win, Tails you Lose o o o Items from Professor Preponomics: U.S. News The Federal Reserve Will Hand Out $11B in Riskless Profits to Foreign Banks in 2016 (Contra Corner) From the Article: “And since there is no plan in sight for unwinding the Fed’s gargantuan balance sheet and soaking up the trillions in excess reserves parked at both domestic and foreign banks, this handout of risk-free cash will continue indefinitely.” Third Quarter …

We Are Now Entering The “Discovery” Phase Of Financial Collapse – B.B. The Reason For The Coming Breakout In The Gold & Silver Market o o o Items from Professor Preponomics: U.S. News Why Capitalists are Repeatedly Fooled by Business Cycles (Mises Institute) Spoiler Alert: “The only way to stop the menace of boom-bust cycles is for the central bank to stop the tampering with financial markets.” Junk Bonds Finally Capitulate to Lower Oil Price Environment (Visual Capitalist) From the Article: “When low oil prices hit last year, many fringe oil and gas producers believed that it would be possible …

Obama Increases Deficit $1 Trillion a Year – B.B. o o o A recession is imminent: 5 charts signaling an oncoming recession. The market is overheated with debt and the public is anxious about the economy. o o o Items from Professor Preponomics: U.S. News Official Time: Practically Opaque in Every Way (Cato Institute) Little truth or transparency here… “The current scenario is ripe for abuse: there is no limit on the amount of official time, no mandated system for tracking the time, and no imperative for the agencies to publish the information.” Obamas Treat Air Force One Like an …

Items from Mr. Econocobas: House Passes $1.15 Trillion Spending Bill: Here Is What’s In It Peter Schiff- Mission Accomplished – A good article from Peter Schiff in regards to the Fed Rate hike this past week. Items from Professor Preponomics: U.S. News The Other Three Rs: Risk Adjustment, Reinsurance and RISK CORRIDORS (Citizens Against Government Waste) Article Excerpt: “…ObamaCare’s risk corridors are designed in such an open-ended manner that the president’s action now exposes taxpayers to a bailout of the health-insurance industry if and when the law fails.” How the Spending Deal’s Risk Corridor Provision Would Affect Obamacare Co-ops (The …

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 …