Category: Economics & Investing

SRSROCCO REPORT: U.S. Ponzi Scheme & Peak Silver o o o An anonymous short-seller called a company a ‘Ponzi-like real-estate scheme’ and the stock has crashed 65% o o o Items from Professor Preponomics: U.S. News Fed “Stimulus” Has Made Inequality Worse, Hurt Economic Growth (Cato Institute) Article Quote: “…Fed policy has contributed to the rise in income inequality in this country. It has also resulted in misallocation of capital in ways that will only be fully discovered when the policy is reversed.” High-Yield Hedge Fund Stops Redemptions (WSJ via CNBC) Quote: “Icahn, an activist investor, also renewed his repeated …

Living A Lie How much debt?! – Sent in by B.B. o o o Why A Major Deflationary Financial Crisis Is Imminent o o o Items from Professor Preponomics: U.S. News Why Gold-Backed Money Doesn’t Bring Booms and Busts (Mises Institute) Zombies Appear in U.S. Oilfields as Crude Plumbs New Lows (Reuters) Article Quote: “The slump has created dozens of oil and gas “zombies,” a term lawyers and restructuring advisers use to describe companies that have just enough money to pay interest on mountains of debt but not enough to drill enough new wells to replace older ones that are …

SurvivalBlog reader WMJ writes in: “It’s been a while since I’ve gotten a roll of dollars from the local credit union, and I found myself in for something of a shock. I gave the teller USD 25 and asked for a roll of quarters. She didn’t have a roll in her till and went to grab one from the safe. When she got back I was asked for my account number. I thought it odd but gave it to her. While she was pulling up my account I asked why I couldn’t just swap cash for cash. She demurred somewhat. …

Welcome to SurvivalBlog’s Precious Metals Month in Review, 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 November? Gold fell prey to the Fed and its pet monster the dollar in November. A huge non-farm payrolls report on November 6th set the tone for commodities for the rest of the month. Traders took much better than expected non-farm payrolls as pretty much a guarantee that the Fed would raise rates from near-zero at …

Dishonest Money Will Die – I Hope o o o Collapse Of U.S. Shale Oil Production Has Begun o o o Items from Professor Preponomics: U.S. News Senator Jeff Flake’s New Report – Waste Book 2015: The Farce Awakens (Citizens Against Government Waste) Hint: You’ll not believe this report on the darker side of government spending, from the $1M NIH study involving monkeys in hamster balls riding on treadmills to $210,000 in a Department of Agriculture subsidy for solar powered beer. …and a suggestion: Send a message of thanks to Senator Jeff Flake for his efforts in this regard. …and …

Greeks Must Declare Non-Bank, Personal Assets – Who’s Next? I fully expect a high level of noncompliance with this edict, but being caught in violation of it can have serious consequences. It is also disturbing to note that we have watched this crises unfold in Greece and then watched our legislators prep the legislation for the same sort of governmental action here. o o o Items from Mr. Econocobas: Canada Just Warned That Negative Interest Rates Are Coming Morgan Stanley’s Christmas Present To 1,200 Of Its Best-Paid Employees: Pink Slips Items from Professor Preponomics: U.S. News Global Joblessness, the Real …

Peter Schiff Warns: “The Whole Economy Has Imploded… Collapse Is Coming” – Link sent in by B.B. o o o First GM China-Made Import to U.S. Scheduled to Begin Sale in 2016 – RBS o o o Items from Professor Preponomics: U.S. News Beleagured Wal-Mart Sues Broke Puerto Rico (Zero Hedge) Article Quote: “It’s always amusing when unforeseen circumstances conspire to bring two previously disparate stories together in one hilarious boondoggle.” No, “Big Data” Can’t Predict the Future (Mises Institute) Article Quote and a Thought: “In the social sciences we’re dealing with complex phenomena. Action and, especially, its outcome is …

Is OPEC Losing Influence? If one thing from the OPEC meeting becomes clear, it is that OPEC’s respect for a production ceiling does not exist anymore, the question rises whether OPEC is still able to regulate prices at all o o o Items from Professor Preponomics: U.S. News How Much Does a Boeing 747 Cost? (24/7 WallSt) Notes: An interesting read and a little insight into both the increasing cost of commercial aircraft over time and aviation economics. Non-Borrower Backed Mortgages? (Zero Hedge) Commentary: Taking into consideration the post-crash mortgage mind-set (and call for larger down payments and stricter lender …

Obama Care Will Implode and Kill the Economy-Karl Denninger – Link sent in by RBS o o o ISIS is obsessed with gold currency – Link sent in by G.P. o o o Items from Professor Preponomics: U.S. News Travel Tab for the Obamas and the Bidens: $70,563,336.75 (Waste Fraud and Abuse) Commentary: This article details yet another way the federal government spends the hard earned money of the American people. Top 10 Wasteful Government Expenses (National Review) Commentary: …and yet another example. Among the programs described in this piece is one designed to answer the question of what bugs …

This Is What Happened The Last Time The Fed Hiked While The U.S. Was In Recession o o o Physical Silver Investment Demand Great Deal Higher Than Official Estimates o o o Items from Professor Preponomics: U.S. News Why This Sucker is Going Down. Again. (Contra Corner) Important Quote: “…permanent gains in wealth and living standards cannot be achieved by the kind of rampant speculation and debt-fueled financialization that had generated the phony boom of the Greenspan era.” ECB Fumbles the Stimulus Baton Hand-Off (Wall Street Journal) Commentary: Yellen’s plans for “lift off” may be based more on economic psy-ops …

If nothing else, we’ve all learned to look at the hand that is not waving in today’s politics. So what is the hidden hand doing while the attention is on the terrorism in California? S&P Downgrades Every Major US Financial Institution – Link sent in by J.C. Back that information up with this link sent in by A.L. which shoes the economy’s recovery in just eight charts. o o o Silver: We Need It! o o o Items from Professor Preponomics: U.S. News Puerto Rico Dodges Default But Faces Deteriorating Liquidity Situation (Washington Examiner) Commentary: There is little relief in …

Items from Mr. Econocobas: Watch for U.S. Recession, Zero Interest Rates in China Next Year, Citi Says What Money Means – This is actually an entire chapter from a new book called Prosper!, by the folks over at Peak Prosperity. Good read! Video Interview: USA Watchdog – Chris Martenson – Everybody Knows This Economy Is Unsustainable Items from Professor Preponomics: How Money Disappears from a Fractional Reserve Money System (Mises Institute) An especially outstanding link for an article from the Mises Institute about how money disappears in a fractional reserve system. U.S. Total Debt Soars to $674B in November (Zero …

HJL, I think Marks point was very Americanized and fits in with American beliefs that people have come to value dollars over gold and silver. If you look to people in other countries, you will see that silver and gold is considered and valued as money. In Africa years ago people were panning for gold and bought bread with the small nuggets that they found. In Asia silver and gold are considered a valuable currency to use as a hedge and to keep your wealth. In Europe with their history, it was considered a good thing to save silver and …

The IMF has given the go-ahead to the Chinese renminbi to be used as one of the worlds Main Currencies. The Euro and the British pound take the brunt of the move while the U.S. dollar remains steady at 42%. However, the move has deeper political ramifications. As the author of the piece states: “As the renminbi becomes more deeply woven into the global economy, it undermines the ability of the West to impose financial sanctions on countries accused of human rights abuses and other violations, like Sudan and North Korea. Such countries can increasingly carry out transactions in renminbi.” …

IMF to make Chinese yuan reserve currency in historic move – Sent in by G.G. o o o Items from Mr. Econocobas: China’s Yuan Approved by IMF for Special Basket Currencies– My question is, say the Yuan makes up 10% of the SDR, where does that 10% come from? The U.S. Dollar or who? How does that effect that currency(s) that is reduced? Hyperinflation Watch: Kazakhstan Unveils New 20,000 Tenge Banknote Items from Professor Preponomics: Negative Interest Rates in Switzerland Have Economists Proposing Scary Scenarios: Should Cash Be Abolished? (Business Insider) Trouble is Brewing in the Paper Markets for Gold …