Category: Economics & Investing

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 …

Something Broke In The U.S. Silver Market o o o Here is a new interview done with Jeff Berwick regarding current and upcoming events. o o o Items from Professor Preponomics: U.S. News Sell the Bonds, Sell the House, Dread the Fed (Contra Corner) Article Quote: “There is going to be carnage in the casino…” …and from one of the comments at the end: “As the pilot told the passengers after lightning struck the plane and fried all of its instrumentation: “I’ve got some bad news and some good news. First, the bad news. We have no idea where we …

Something Strange Is Taking Place In The Middle Of The Atlantic Ocean – Sent in by J.C. o o o Baltic Dry Crashes To New Record Low As China “Demand Is Collapsing” – Sent in by G.G. o o o Items from Professor Preponomics: U.S. News Fed Betting It Will Avoid Central Bank Errors of the Past (CNS News) Commentary: The Fed’s 1937 error, Japan’s lost decades, Europe’s dubious hikes… A stroll down a less than pleasant version of memory lane. Time will unfold the story about whether or not the current quarter point rate hike was the right Federal …

Items from Mr. Econocobas: Bitcoin Or Gold: Did The Alleged Bitcoin Creator Just Settle Once And For All What Is More Valuable? David Stockman: December 16, 2015—–When The End Of The Bubble Begins What Benefits To Savers? Banks Rush To Hike Prime Rate To 3.50%, Forget To Increase Deposit Rate Items from Professor Preponomics: U.S. News All eyes are on the FED… Fed’s Historic Liftoff and Everything After: Decision Day Guide(Bloomberg Business) “Economists and traders expect the first interest rate increase since 2006, marking the beginning of the end for the unprecedented era of easy monetary policy. The move would …

Big Banks Caught Using Credit Default Swaps To Destroy Nations o o o Silver: Until Paper Currencies Stop Losing Value o o o Items from Professor Preponomics: U.S. News Janet Yellen: An Orthodox Economist in Unorthodox Times (Reuters) Commentary: Brief, easily readable, a good overview as we approach the coming announcement with the Federal Reserve’s decision regarding a rate hike. This article revisits the idea that old models may no longer work to evaluate current conditions and the uncertain environment in which decisions will be made. Fannie and Freddie’s Propoganda War (Wall Street Journal) Bubble Watch: No Down Payment Jumbo …