Category: Economics & 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 …

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 …

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 …

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 …

Items from Mr. Econocobas: Peter Schiff: Clueless in Davos – While I agree with Schiff, I however don’t agree that this is just misguided policies, rather it is intention in my view. Also, not sure many foreign currencies will rise either. Why A Former Fed Official Fears A Global Meltdown Video: Bill Holter- This Is It, The Collapse Is Here – Bill is always interesting, and I am not deep enough into the derivatives world to know there are defaults happening, but it is worth the watch/listen. Items from Professor Preponomics: US News Bank Mortgage Settlements Total $144B: Where Did …

Feds foresee $30 trillion debt, blame looming tax hikes and Obamacare – G.G. o o o America Will Spend More on Taxes than Food, Clothing, and Housing Combined (Graphic). So much for the land of the free. We are all serfs now. – H.L o o o Items from Professor Preponomics: US News The Fed Passes the Buck: Blame Oil and China (Mises) This is a highly recommended reading and an outstanding discussion of money supply inflation. Excerpt: “What many people today call inflation or deflation is no longer the great increase or decrease in the supply of money, but …

Items from Mr. Econocobas: Norway’s Biggest Bank Demands Cash Ban – This call for capital controls is not likely to go away; hedge yourself to the best of your ability. The Markets Are Backing Central Bankers Into a Corner – As you are well aware, and plenty of folks have been saying for a long while, QE and other central bank interventions are a monetary roach motel. You can never check out. Items from Professor Preponomics: US News Waste-O-Meter: GOP Lawmakers Create Meter to Target “Wasteful” Government Spending (The Providence Journal) In an attempt to tackle the problem of “out …

Nearly $8 trillion wiped off world stocks in January, U.S. recession chances rising: BAML – B.B. o o o Items from Mr. Econocobas: David Stockman- 700 Days In No Man’s Land – Why They Can’t Keep It Up Venezuela Default Imminent Items from Professor Preponomics: US News Moody’s Puts 175 Energy and Mining Companies on Downgrade Watch (Financial Times) Excerpt: “Several of the world’s biggest oil and gas groups— including Royal Dutch Shell, Total and Chesapeake Energy— are among 175 energy and mining companies at risk of rating downgrades following a collapse in crude and other commodities markets….” Bonner: The …

Strange and Crazy in the Financial World! o o o Reader B.B. Sent in this article: New Arizona Bill Would Give Tax Break To Gun Owners HJL’s Comment: While it seems at first glance that this bill is a good thing, a deeper look reveals that it is not. On July 29, 2010, Arizona’s Constitutional carry law went into effect. This means that if you are legally able to own a firearm and you are 21 years of age or older, you can carry concealed in the State of Arizona without a concealed weapons permit. (You still have to abide …

Mason jars in the backyard better than the markets for now – D.S. o o o San Francisco housing mania: Badly charred home that is uninhabitable sells for $186,000 over asking price.. In the S.F. Bay Area, the Housing Bubble now includes Rubble. What madness! – JWR o o o Items from Professor Preponomics: US News Big Banks Brace for Oil Loans to Implode (CNN Money) Excerpt: “The oil crash has already caused 42 North American oil companies to file for bankruptcy since the beginning of 2015, according to a list compiled by Houston law firm Haynes and Boone. It’s …

The U.S. Is At The Center Of The Global Economic Meltdown – D.R. o o o Items from Mr. Econocobas: World faces wave of epic debt defaults, fears central bank veteran – Folks on the inside are starting to let it out. These are very interesting times; stay alert. Items from Professor Preponomics: US News Stocks Drop as Oil Prices Tumble (Fox Business) Excerpt: “…the International Energy Agency on Tuesday said it expects excess supply to keep the oil market oversupplied through late this year, which the IEA said could make 2016 the third-consecutive year of supply exceeding demand by …

As this “Recovery” trudges on, the numbers are starting to become known. SurvivalBlog reader B.B. sent in this link showing that Americans are giving up on jobs. “As many as 40% of capable Americans without a job have completely given up looking for work” o o o Why U.S. Retail Sales Ended 2015 Poorly – RBS o o o Items from Professor Preponomics: US News More Pain Seen Ahead for US Banks Exposed to Energy Loans (Yahoo) Excerpt: “”Everybody was hoping for a bounce through most of last year and it hasn’t materialized so I think both the regulators and …

Italian banks are being squeezed at the margins. Some analysts anticipate more turbulence. “Analysts say stimulus measures by the European Central Bank have helped an economic recovery but have the side effect of putting bank margins under pressure.” 2 Italy Bank Stocks Plunge, Brokers Say Prepare for Tough 2016 – T.A. o o o China to spark financial ICE AGE with depression, says Societe Generale bear analyst – B.B. o o o Items from Professor Preponomics: US News Is Eating a Cinnamon Roll Irrational? (Mises) Who knows what’s best for you? Excerpt: “…in criticizing information asymmetry in markets, they are …