Category: Economics & Investing

The Hidden Motives Behind The Federal Reserve Taper. [JWR’s Comment: The renewed talk of the Fed tapering from the current $85 billion per month of Quantitative Easing (QE) money creation is balderdash. Presently, I can see only two possible solutions for the Fed’s quandary: 1.) They find another excuse not to taper Fed purchase of MBS derivatives and other securities. or 2.) They do taper the current QE program, but meanwhile surreptitiously create another form of monetization that is just a big, or even bigger. (This might involve foreign central banks, in a mutual back-scratching arrangement, whereby we’ll buy their …

What Does the Price of Gold Do In Deflation? (Thanks to Pierre M. for the link.) B.B. sent: The Federal Reserve Is Leveraged Roughly 70 Times Italy’s president fears violent insurrection in 2014 Andre D. sent a link to an opinion piece by Gordon Brown: Stumbling Toward the Next Crash. (Brown is a Labour Party member of the British Parliament a former Chancellor of the Exchequer and former Prime Minister.)

D.L.T. sent us this: The modern economy depends on dozens of obscure metals. What happens if we run out? Over at Sipsey Street Irregulars, some more evidence that ammunition was and still is a wise investment: Logistics: CMP advisory on .22 Long Rifle My old friend Conor recommended a BBC news segment about the little-publicized EB-5 Green Card program: Chinese investors ‘buying’ US green cards for $1Million. (Warning to dial-up users: The included video is launched automatically.) Of course the reverse side of that coin is found in countries like Panama, where American retirees are effectively buying residency for as …

J.W. suggested this piece by Jeff Thomas, over at Doug Casey’s International Man site: It’s Not “If;” It’s “When” G.G. suggested this news item: Sterling to go plastic, Bank of England decides Also from G.G.: Price of Ground Beef Hits All-Time High

Reader Andre D. sent: Feeding the Bubble: Is the Next Crash Brewing? Charles Hugh-Smith: A Quick Guide to What’s Fake: Everything That’s Officially Sanctioned. [JWR’s Comment: While I disagree with his viewpoint on government intervention in the marketplace and on taxation (I’m a laissez faire minimalist-government libertarian), I almost always enjoy reading Charles Hugh-Smith’s piercing observations.] Over at The Daily Bell: Forced Savings Bait and Switch Items from The Economatrix: U.S. October Business Inventories Up 0.7% Why The Budget Deal Is Bad News For Gold: Pro Is Your Job About To Be Outsourced By A Computer (The Probability Is 47%) …

Readers Mark A. and John in Colorado both mentioned: Taper or no taper, the Fed will never end QE: Marc Faber Camden, New Jersey: One Of Hundreds Of U.S. Cities That Are Turning Into Rotting, Decaying Hellholes Record U.S. Gold Bullion Exports Head to Hong Kong & Switzerland Items from The Economatrix: Retail Sales Rise, Signaling Stronger Economy Jobless Claims Highest In Two Months Why I Won’t Be Surprised if the Global Economy Caves

K.A.F. sent a link to some fascinating maps: America’s Wealth Is Staggeringly Concentrated in the Northeast Corridor. (But take a look at the Bakken region of eastern North Dakota.) Reader Tim R. suggested this article: Gun Stocks Soar, Gun Control ‘Dead as an Issue’ Pierre M. sent: North America to Drown in Oil as Mexico Ends Monopoly Items from The Economatrix: Proposal On Capitol Hill Would Nearly Double Federal Gas Tax The Economy: What’s Ahead In 2014 Improving Economy: Is It For Real?

Andre D. forwarded this Reuters article link: Insight: Europe faces moment of truth on banks, with flawed defenses Mike Rowe on the Hidden Cost of Compliance (A hat tip to H.L. for the link.) Items from The Economatrix: IT’S A SCANDAL: New Budget Agreement Doesn’t Contain Extended Benefits For The Unemployed New Wave Of US Mortgage Troubles Threaten Europe Repeating Japan’s Errors As Deflation Draws Closer

Reader Tom H. sent: Price of silver could double because of Apple Washington & Wall-Street: The Death of Money. (Thanks to both Gregg P. and to Jeff in Texas for the link.) C.D.V. sent this: Yet Another Massive Nail In The Dollar’s Coffin Items from The Economatrix: Richard Russell – US May Destroy The World Monetary System The One Topic No One Is Discussing Congressional Odd Couple Finally Strikes a Budget Deal 

This year saw a battle for the direction of precious metals waged between speculators and short-term “paper gold” traders in the West, against record-breaking physical demand in the East. That physical demand from Asia reached new highs in 2013, underpinning a market that saw the outflows from precious metals ETFs eagerly snapped up by the Chinese and Indians. Gold and silver ended the year about where they ended 2010, while platinum was down only slightly from 2012. Palladium was the big performer, doing even better in 2013 than last year, but not as well as the all-time high reached in …

Reader H.L. sent: While the White House and Senate Democrats hammered guns and gun rights during 2013, investors put their money into gun company stocks and garnered “incredible returns.” Items from The Economatrix: Must-Know: Minimum Wage of $7.25 Isn’t As Low As People May Think US Wholesale Stockpiles Grow 1.4 Pct. In October Why Natural Gas Prices Jumped On The Latest Inventory Report

Reader H.J. sent this news of a trial balloon: Obama Admin Plans To ‘Force’ Americans To Move Into Cities – “Redistributing” the Wealth H.L. sent: Market Analyst Is Looking at Something He Says Should Be Causing ‘Panic Aplenty’ Rob McEwen: “Our [Currency] Is Being Debased, And One Needs To Protect Their Capital” Items from The Economatrix: 37 Reasons Why “The Economic Recovery Of 2013? is a Giant Lie US Job Openings Reach 5-Year High, A Hopeful Sign The Minimum Wage Ain’t What It Used To Be

Five Bullish Indicators That Will Drive Silver Prices Higher Andre recommended this photo collection: Modern Ruins of Abandoned Detroit. (Quite sobering, and hopefully not a preview of the demise of America’s other large cities.) Items from The Economatrix: Another Government Shutdown In Sight? Five Trends Beneath The Surface In Nov. Jobs Report Depreciating Cars And Expensive Diplomas Fueled By Easy Debt: 95 Percent Of Consumer Debt Growth In Past 12 Months From Cars And Student Loans