Category: Economics & Investing

The Dread Pirate’s Cash Stash is Still Safe U.S., Switzerland Export Largest Ever Amounts Of Gold To Hong Kong And Investors Should Take Note G.G. suggested this piece: What’s happening in the Treasury bill market today should terrify you Items from The Economatrix: The “D.” Word, again: Boehner says U.S. on path to default if Obama won’t negotiate Governments Will Start Panicking As Chaos & Crisis Accelerates Peter Schiff Warns Yellen’s Nomination Means Any QE Taper Expectations Are “Delusional” Obama Offers Two Choices: Unconditional Surrender Or Default

James Wesley, I read your blog daily for news and inspiration. I just sold my house and have equity that we want to purchase a new home with…debt free, pay cash.We will be looking for a home in Texas, and hope to be settled in in the next 18 months. My question, what do I do with $200,000 in the mean time?  I’m terrified to put our earnings from the sale into a bank. Thanks – Stacy D. JWR Replies: In my opinion silver bullion (pre-1965 “junk” coin bags or 100-ounce serialized Engelhard bars) are your best bet, for an 18 …

Until October 15th the documentary An Inconvenient Tax will be available via streaming to Netflix subscribers. Economics Professor Laurence Kotlikoff: Oh, and By the Way, Our Government Is Totally Broke! A useful primer: Rehypothecation of Collateral G.G. flagged this: Five Alarming Facts About Entitlement Spending Items from The Economatrix: The D Word, again: US default seen as disaster dwarfing Lehman’s fall “Among dozens of money managers, economists, bankers, traders and former government officials, few view such an event as anything but a financial apocalypse.” Peter Schiff Warns of Martial Law Where Did The Gold Go?

John E. sent this: Russia to Grab Pension Money, Temporarily Michael Z. Williamson (SurvivalBlog’s Editor at Large) spotted this: Obamacare’s winners and losers in Bay Area. (One confused Dem resident of the People’s Republic of California commented, after learning that his insurance rate would jump to $10,000 per year: “Of course, I want people to have health care. I just didn’t realize I would be the one who was going to pay for it personally.”) The bond funds are still getting hammered by just rumors of Fed tapering: Gundlach’s Fund Had Its Biggest Redemptions in September. Items from The Economatrix: …

G.G. flagged this: Families hoard cash five years after crisis. [JWR’s Comment: Could it be that the collective conscious recognizes that the “recovery” is a charade? Not mentioned in precious meta;s saving, which is the norm in India, although actively discouraged by the government.] MasterCard joining push for fingerprint ID standard. (Thanks to H.L. for the link.) What the wealthy are doing to beat inflation Items from The Economatrix: The Biggest Drag on the Job Market Just Got Bigger Catastrophic Consequences of a U.S. Default Explained The Grand Financial Shift: Rich Own Assets While Poor And Working Class Deep In …

The release of the latest anti-counterfeiting edition of the U.S. $100 Federal Reserve Note is scheduled for today. The new bill has lots of pretty gold-colored elements on the right side, but like its predecessors ever since 1963, it has NO gold or silver backing. So this is just the latest in fiat funny money. I’m often asked by readers if they should gradually replace their stored cash when new currency is released. The general answer is yes, since there may come a day when the older bills are repudiated. (After all, what is the point of anti-counterfeiting features if …

Sue C. suggested this: What would a U.S. default look like? The FBI’s Plan For The Millions Worth Of Bitcoins Seized From Silk Road H.L. sent: Property owners in Lake Mead forced to leave their own homes until government shutdown ends. [JWR’s Comment: I’ve often warned about the risk of being a “inholder” on Federal land. Here is one implication that has come to pass.] Items from The Economatrix: ‘You Should Be Concerned’: Obama Warns World Markets There Is No Guarantee U.S. Will Avoid Defaulting On Its Debts Jobless Claims Rise, And Hiring Remains Slow The Rise Of A Semi-Employed …

Brendan D. sent this: How long do we have before seeing hyperinflation? Where’s sense of crisis in a 17% government shutdown? Items from The Economatrix: “The Party Is Over” For Housing — And Bank Earnings: Chris Whalen Heavy Metal: Gold Could Rush Back To $1,425 Says Jeff Kilburg Ron Paul: “The Country Is Bankrupt… The People Are Being Bamboozled”

Happy 100th Anniversary, Federal Income Tax. [JWR’s Comment: Both the Federal Reserve banking cartel and the Federal income tax are at the One Century mark. Just imagine what America could have been like, without them!] Texas eliminates sales tax on precious metals coins Treasury warns default could be worse than Great Recession. Items from The Economatrix: World Bank Whistleblower Karen Hudes Reveals How The Global Elite Rule The World The Connection Between Government Shutdown & Customer Deposit Grabs Dollar Pressured By U.S. Politics, Global Stocks Flatline

Market anxiety: Stocks tank, CDS derivatives spike… Reader H.W. sent: Here’s How Much The Obamacare Penalty Tax Will Cost You… Mike Adams: Continued shutdown, paralyzed politicians reveal just how close the U.S. government is to total collapse We are also warned: McAfee: Exchanges Will Become Target Of Hackers And Identity Thieves The World Over US shutdown worries world media Items from The Economatrix: Government Shutdown: The Next Step In The Collapse Of The Dollar? Detroit Defaults On More Than $600 Million Of ‘Unsecured’ GO Bonds Postal Service Defaults On $5.6 Billion Payment

The Dreaded D Word: Treasury taking final steps to avoid default Blackstone Investor Sees ‘Epic’ Credit Bubble Frequent contributor H.L. sent this: ‘It’s not life, it’s survival’: Crisis-hit Portuguese forced to live in communes Silk Road site and DPR’s Bitcoins seized. (Thanks to J.B.G. for the link.) Items from The Economatrix: Peter Schiff Was Right Part Deux: The “Taper” Edition Markets Are Crumbling All Around The World As Government Shutdown Gets Close This Will Create A Horrific Collapse That Will Shock The World

Reader Paul B. sent a link to a “must read” article on Quantitative Easing and the velocity of money, wherein economics professor Laurence Kotlikoff of Boston University asks: Is Hyperinflation Just Around the Corner? Karl Denninger Goes Galt on His Tax Footprint: It’s Called Evolution, Gentlemen (Tickerforum Changes) A.M.B. sent: Government shutdown: Get up to speed in 20 questions Items from The Economatrix: The Job Situation Looks A Little Worse Here’s Why Unemployment Is Still At Unacceptable Levels US Is Broke, Can’t Afford To Raise The Debt Ceiling Says Schiff

As I’ve long warned my readers, the days of the Penny and Nickel are numbered: SAVE II Act Would Prohibit “Non-Cost Effective” Coins and Currency. (Thanks to Rich R. for the link.) Reader B.B. sent: Americans warned bank ‘bail-ins’ coming James W. sent us this: The Death Of The Dollar – In Pictures Items from The Economatrix: Panama Declares Banking Holiday Home Prices Continue To Climb How Government Shutdown Would Hurt Main Street

File under: Omens, Bad: NYSE Margin Debt Is Rising Once Again. (Thanks to Bob in Manassas, Virginia for the link.) Peer-to-Peer Economy Thrives as Activists Vacate the System Items from The Economatrix: Wal-Mart Nails The “Consumer Recovery” Coffin Shut CFTC Concludes Long-Running Silver Manipulation Investigation, Finds Nothing Wrong New Homes Sales Climb 8%