Category: Economics & Investing

Hugh, Regarding K.D.’s article on becoming debt free, a 401K loan should be the last resort in most cases. “Paying ourselves interest” sounds like a fantastic deal, but it is not that simple. What many do not realize is that loan payments into a 401k (typically from payroll deductions) are made from after-tax dollars. When those dollars are later withdrawn from the 401k, they are taxed again. So, the dollars you “pay yourself interest” with will be taxed twice. Assuming the lowest federal bracket of 15%, that “additional 3.25%” the author mentions going into his retirement account will all be …

24 Reasons Why Millennials Are Screaming Mad About Our Unfair Economy o o o The Appalling Truth About Energy Subsidies. – E.K. o o o Items from Mr. Econocobas: Putin Stockpiles Gold as Russia Prepares For Economic War ISIS to Mint Own Currency Out of Gold, Silver and Copper – Agree that the world debt-based fiat monetary system is enslaving the entire planet, but what is most interesting is perhaps this is how the U.S. might issue controls on gold/silver by giving the excuse da jour of “terrorism”, and poof there goes the Constitution and your God-given rights. Economists Trim …

Response to D.R., I am in no way qualified to make retirement recommendations for anyone other than myself. In fact, now that we are debt free I enlisted the help of a financial advisor for just that reason. I should clarify a bit concerning our 401K accounts. When I said in the article, “We pulled our money out of the market” we actually just pulled out of equities. We parked the funds in a savings account within our 401K plan, but we actually re-entered equities in 2010. The appreciation of those funds helped us in our war immensely. As for …

GAO: IRS Lacks Adequate Internal Controls. – PLC o o o How Much Interest Has Your Food “Bank” Earned This Year? o o o Items from Mr. Econocobas: Marc ‘Dr. Doom’ Faber: I will soon be proven right Japan’s Slip into Surprise Recession Paves Way for Tax Delay, Snap Poll Japan Unexpectedly Enters Recession as Abe Weighs Tax: Economy

Report: 25 Percent Of Connecticut Households Above Federal Poverty Level But Struggle To Meet Basic Needs. – G.G. (Free registration required to read the article. Don’t violate OPSEC.) o o o Nearly half of Florida households are struggling financially, United Way reports. – G.G. o o o Turkey production down, wholesale prices up . – M.M. o o o Borrowers, Beware: The Robo-signers Aren’t Finished Yet. – G.G. o o o Gold shortage worst in over a decade

HJL, KDs advice on getting out of debt and getting spending under control is spot on, but I am curious what KD and the SurvivalBlog editor recommend for retirement savings. Obviously silver and gold are vital components of any investment portfolio, as a hedge against the failure of currency, but these investments do not pay dividends and cannot be relied upon as a complete retirement plan. When investing for the auction price of a stock, as the mainstream foolishly recommends, I agree with SurvivalBlog that the stock market can be a dangerous store of wealth. However, if you approach investing …

Weather, tight supplies drive U.S. cattle prices to new high o o o Winging it through retirement: 30 percent of Americans have no retirement savings. o o o The politics of housing: Why are many blue cities unaffordable to the middle class? o o o Items from Mr. Econocobas: 24% Of Millennials “Expect” Student Loan Forgiveness – As someone with student loans, I understand the frustration of an highly overpriced “asset”, but this is insanity to even think this. Video: David Stockman Interview On Bloomberg TV: Congress Is In A Fiscal Coma—Do Not Disturb! Video: David Stockman Interview On Bloomberg …

ISIS Unveils Its New Gold-Backed Currency To Remove Itself From “The Oppressors’ Money System”. – B.B. o o o The Reverse Of Central Bank Gold Flows Spells The Death Of The Dollar o o o Items from Mr. Econocobas: The Economic End Game Explained – This is a must read. Video: David Stockman Interview On Bloomberg TV: Reagan History Is Revisionist Mythology Foreclosures Spike as Banks Ramp Up Repossessions – I’ve lived next to a very nice unoccupied home for three years now, in a sought-after neighborhood, that has not even gone through the foreclosure process. These homes are all …

Vladimir Putin “Prepares For Economic War”, Buys Whopping 55 Tonnes Of Gold In Q3 o o o The Economic End Game Explained. – J.W. o o o Items from Mr. Econocobas: Ask The Expert Interview with Chris Martenson from Peak Prosperity Mortgage Volume Stalls with Rates 24 Reasons Why Millennials Are Screaming Mad About Our Unfair Economy

IEA Says Oil Supplies May Not Keep Up With Demand o o o Banks fined billions for rigging currency markets – G.G. o o o Items from Mr. Econocobas: What the Economy Has Done to the Family If Everything Is Just Fine, Why Are So Many Really Smart People Forecasting Economic Disaster? Fears of German Recession as Moment of Truth Looms Fed’s Rosengren Says Fight for Higher Inflation Should Be Vigorous– There’s so much I want to say, but this illustrates how fundamentally the economy is in a depression wanting to clear the imbalances by deleveraging, but the Central Bankers …

Mr. Editor, Would you please ask Mr. Rawles why the price of silver coins and silver in general has dropped in price. Since I bought mine, it’s lost half its value. Is it going to go back up? Thanks so much. The info on your website is invaluable. – C. in OH JWR responds: The futures and spot silver markets are quite thin and easily subject to manipulation. It is presently being pressed very hard by the market manipulators. The REAL price of silver is somewhere around $22 per ounce. Just look how quickly it sells for that on the …

Younger Generation Faces a Savings Deficit. – G.G. o o o Items from Mr. Econocobas: Retailer Schism Widens Over Whether to Open Thanksgiving – This is sad, but the broader point is: if we had such a great recovery going on, why are these stores so intensely desperate for sales? Predictors of ’29 Crash See 65% Chance of 2015 Recession – They don’t let on that they are aware of how structurally unsound the U.S. is, rather they point to weakness worldwide dragging the U.S. down; so, to that extent, I disagree. Fed Money Printers At Work: Top 1% Gains …