Category: Economics & Investing

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 …


Economics and Investing:

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 …


Economics and Investing:

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 …


Economics and Investing:

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 …


Economics and Investing:

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 …