Category: Economics & Investing

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%

G.G. flagged this: Stockton Farmers Say Walnut Crops Are Prime Targets For Creative Thieves B.B. sent this: Credit card firm cuts off nation’s No. 1 gun store — for selling guns Items from The Economatrix: Over at Zero Hedge: QE Worked For The Weimar Republic For A Little While Too Cyprus-Style Wealth Confiscation Is Now Starting To Happen All Over The Globe US Economic Confidence Slumps To Six-Month Low Oil Rises Above $103 A Barrel On US Data

Alex G. sent: Why Quantitative Easing Is Not Working Eric Sprott Exclusive: The Fed Has Lost Control of the Bond Market!   Items from The Economatrix: This Will End In Catastrophic Collapse & Tragedy For The West Consumer Confidence Drops Most In 6 Months To 4 Month Low Making $100,000? Then Flipping Burgers May Be In Your Future

Financial Betrayal – Collapse Assured H.L. sent: Wild Hogs Roam Streets, Scare People Near Atlanta Anthony M. forwarded this link: The Fed’s ‘hidden agenda’ behind money-printing. Here is the crux of it: “The CBO estimates that by 2020 total debt held by the public will be $16.6 trillion as a result of the rising accumulated debt. Do the math: If we were to pay an average interest rate on our debt of 5.7 percent, rather than the 2.4 percent we pay today, in 2020 our debt service cost will be about $930 billion. Now compare that to the amount the Internal …

Reader H.L. suggested this over at Zero Hedge: It Begins: Monte Paschi “Bails In” Bondholders, Halts $650 Million In Coupon Payments James Rickards: “When The International Monetary System Collapses—It’s Going To Be About How Much Gold You Have” Items from The Economatrix: Walmart Holiday Hiring To Outpace US Retail Industry “Dr. Doom” Roubini Makes Case FOR The U.S. Economy Why I’m Not Buying The Market’s Blind Optimism