Category: Economics & Investing

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 …

The American Dream Is Over o o o G.G. sent in a link showing what happens when you keep kicking the can down the road: Stocks are more overvalued now than at 2000 and 2007 peaks o o o Items from Professor Preponomics: U.S. News The Dreary Utopia of the Socialists (Mises Institute) Report: Government Wastes Billions as National Debt Approaches $19T (Judicial Watch) Excerpt: “The federal government spent more than $65,000 to study what happens if someone turns on a light at night in a rural area. Anyone raised in a rural area can attest that one way to …

Peter Schiff Exposes The Real Problem Facing The Fed – Link sent in by B.B. o o o Millennials will not save the housing market: 50 percent of Millennials have less than $1,000 in savings. A large number are mired in student debt. o o o Items from Professor Preponomics: U.S. News High Impact Market Possibilities After First Federal Reserve Rate Hike (24/7 Wall Street) Article Quote: “One very good thing about history is it is always there when you need to review how an economic event could play out against the existing landscape for investing.” A Top JP Morgan …

In this age of increasing federal overreach, one can feel the hand of the government perhaps more than any other time in our albeit short history as a nation.  Thanks to criminal actions from bureaucrats, constitutional violations such as the Patriot Act have become the new law, eroding our liberties on this soil with each passing day, much like a sand dune standing against a series of crashing waves. So here we are.  What do we do now?  Some are taking action against the system.  Some want to peacefully non-comply just enough to not be thrown into a cage.  It …

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. …