Category: Economics & Investing

Mr. Rawles: Can you tell me in simple terms how will the current Federal budget crisis and the credit market turmoil play out, in like the long run? How can I protect my savings, in all this chaos? Which are the safe currencies? Thanks, – S.G. JWR Replies: Physical gold is presently heading to China in huge quantities, month after month. (Roughly 1,000 tons of gold per year!) At some point in the near future, the banksters of the West will run out of gold and be left with nothing but a paper-based house of cards. Following the current period …

B.B. sent: 1929 Analog Pierre M. spotted this: Coming Soon: The Coming Global Wealth Tax Axel Merk: Is the Fed increasingly monetizing government debt? (Thanks to G.G. for the link.) Items from The Economatrix: Strong US jobs report keeps markets in check Top 10 Percent of US Households Control Nearly 75 Percent of All Wealth – Average Americans Pretend to be Temporarily Embarrassed Millionaires by Going Further into Debt. Inflation Since 2000 is “Not Contained”

Professor Laurence Kotlikoff: $200 Trillion in Long Term Obligations and Fed is Printing 29 Cents of Every Dollar G.G. flagged this bellwether event: Chinese Yuan Surpasses Euro, Becomes Second Most Used Currency In Trade Finance After the recent looting spree in Cordoba, Argentina: “Cleanup on Aisle Three.” [JWR’s Comments: People will come unglued and start looting when the police go out on strike, or otherwise don’t show up for work. Count on it. Oh, and by the way, store owners will have to Go Full Koreatown, and gun up, or lose everything.] Items from The Economatrix: Too Big To Fail …

Reader Bob C. notes “…an interesting divergence between risk money (hedge funds), smart money (institutions) and dumb money (retail investors)”: Institutions Have Been Dumping Billions Of Dollars Of Stocks All Year, But Now The Selling Is Really Accelerating. (At the same time that some middle class suckers are borrowing money to buy over-valued stocks, the smart money is heading for the hills!) It Will Implode: “We Will See The Demise of the Dollar” Items from The Economatrix: ‘Underground’ Economy Signals Soft Growth US Car Sales Jump In November Expect Devastating Global Economic Changes In 2014

Icelanders Overthrow Government and Rewrite Constitution After Banking Fraud – No Word From US Media Which Currency Is Up Over 9000% This Year and Sells for Almost as Much as an Ounce of Gold? JWR’s Comments: I’ve been recommending the use of Bitcoin since May of 2011. $100 put into Bitcoin at that time would now be worth thousands. Of course Bitcoin is virtual, so it should not be confused with genuine money (like gold or silver), which has inherent practical value. But at least there is a finite limit for the world supply of Bitcoin, which is more than …

The Twenty First Century Abolitionist Project: Slavery and Taxation by Bill Buppert John Mauldin: The Same People Who Brought Us The Great Financial Crisis Have Created A Dangerous New Paradigm: The Arsonists Are Running The Fire Brigade Puerto Rico, with at least $70 billion in debt, confronts a rising economic misery Items from The Economatrix: Wow – The Holiday Shopping Season Is Off To A Horrible Start The Average American Is Broke And Buying Things They Cannot Afford With Debt Again. Debt Based Consumer Financing Again Filling The Gap Of A Shrinking Middle Class. 15 Signs That We Are Near …

Which Currency Is Up Over 9000% This Year and Sells for Almost as Much as an Ounce of Gold? Easy money? $3 trillion headache on the way for corporations. (A hat tip to H.L. for the link.) Greg P. sent: RBS admits decades of IT neglect after systems crash Items from The Economatrix: The New American Retirement Nightmare: Many Americans Find They Are Completely Unprepared For Retirement “We Are Playing Economic Russian Roulette” David Stockman Fears “Panic” When The “Lunatic” Fed “Loses Control”

B.B. suggested this over at Mises.org: The Fed Must Inflate China’s Gold Rush Continues, Imports Another 131 Tonnes In October Meanwhile, we read: China Is On A Debt Binge And A Buying Spree Unlike Anything The World Has Ever Seen Before Items from The Economatrix: Why Are the Bankers And Ex-Intel Types Running For Their Lives? “I Fear For What’s Coming” – 68 Percent Of Americans Believe The Country Is On The Wrong Track Fake Employment Numbers – And Five More Massive Economic Lies The Government Is Telling You

China’s rich fleeing the country—with their fortunes. (Thanks to R.B.S. for the link.) G.G. sent: Porter Stansberry: The madness of the crowd cannot sustain this rally Items from The Economatrix: Inflation Watch: Thanksgiving Dinner Edition No CapEx Recovery: Durable Goods Disappoint As Capital Goods Orders And Shipments Decline 53% Of Bankers Say Ethics Inhibit Career Progression – Here’s Why

Company accused of preying on faith, not delivering millions of dollars in precious metals. Alt-Market: Expect Devastating Global Economic Changes In 2014 G.G. suggested: Martin Armstrong: Expect Cashless Society, Not Hyperinflation Items from The Economatrix:. Expect Devastating Global Economic Changes In 2014 Will “Rising” Gas Prices Crush The Holiday Spending Spirit? Federal Cuts Biting Into Home Heating Aid

2014 – Internationalization Of The Yuan, The Opening Of Saudi Arabia, The Implosion Of The EU, And Three Of The Last Pillars Of The Dollar Crumble R.I.P. USA November 21, 2013 Items from The Economatrix: Stamp Prices To Go Up 1 Cent In January Applications For Jobless Benefits Fall Again Nasdaq Closes Above 4,000 For First Time In 13 Years

In case you missed seeing it, there was a good summary documentary released in 2012: Overdose: The Next Financial Crisis Items from The Economatrix: Prepare For What’s Coming: “The Largest Financial Collapse This Planet Has Ever Seen” Is The Federal Reserve Looking At Monetizing Student Loan Debt? Paul Craig Roberts:  Federal Reserve And Wall Street Assassinate US Dollar

Under Obama, Your Electricity Costs Have Already Necessarily Skyrocketed Peter Schiff: Another Bubble Set to Burst Items from The Economatrix: Four Fantastic Charts Showing Gold Is Nearing A Major Turn Trickle Down Economic Recovery: Monetary Expansion, Excess Bank Reserves, And Leftovers For Main Street Gold Price Trend Forecast Into the End Of 2013

Ron Paul: “The Fed Steals From The Poor And Gives To The Rich” Banks Syphoning Off The Financial Blood Of Their Customers Today’s Wealth Destruction Is Hidden By Government Debt Items from The Economatrix: U.S. Retail Sales Accelerate In October Dow Ends Above 16,000 For First Time, Boosted By Data China Announces That It Is Going To Stop Stockpiling U.S. Dollars

Reader R.K.D. sent: Fed’s Tarullo details plans to counter bank runs Blogger Mike “Mish” Shedlock is Fined €8,000 Euros by France for Freedom of Speech Items from The Economatrix: US Existing Home Sales Fall 3.2 Percent in October Declining Prices Of U.S. Homebuilder Stocks An Indicator Something Not Right With Housing Market Jim Rogers On QE, Currency Wars, Gold And Inflation