Category: Economics & Investing

SurvivalBlog reader V.H. suggested this interview with Doug Casey: You MUST get assets outside of the U.S. Der Gruppe Deutsche Börse’s MNI reports: China Government Advisor Says Economy In Crisis As Debt Costs Spiral. (Thanks to Andre D. for the link.) Items from The Economatrix: Game Over – “It’s All A Farce, The Fed & German Gold Is Gone”  The Flash Point Looms The Decline Of Breadwinner Jobs Has Resulted In The Longest Bread Lines In American History Fed Split In June On QE Timing; Bernanke Sees Easy Policy For Now

Five years of the Fed and Treasury Department’s forced Zero Interest Rate Policy (ZIRP) have badly distorted our economy, removing any pretense of a “free market.” All that we have left are markets on life support. With yields of less than 1/4 of 1%, passbook savings accounts are joke. Money market rates ranging from 0.40% to 0.85% aren’t much better. With ZIRP, local, state, and Federal government over-spending has had no serious consequences. But when rates eventually do spike, there will be a bloodbath. Bond yields are completely out of whack. Banks have been given unrealistically high reserves. So ZIRP …

Gold And Silver – Knowledge Is Not Of Value. Using It Is Bill Bonner’s latest commentary on mass inflation: Gono, but Not Forgotten F.G. sent this news from Arizona: APS seeks higher bills for new solar customers Items from The Economatrix: Dr. Paul Craig Roberts:  US Trying to Push Back a Dollar Blowup US Consumer Borrowing Up As Credit Card Use Rises 15 Signs That The Quality Of Jobs In America Is Going Downhill Really Fast

Simon Black of Sovereign Man reports: The situation on the ground in Athens   Items from The Economatrix: Obamacare Strikes:  Part-Time Jobs Surge To All-Time High, Full-Time Jobs Plunge By 240,000 Market Turmoil:  Portugal Slides Closer to Abyss with Forced Austerity Measures Bernanke Seen Sticking to QE Tapering Plan After Jobs Report

Some great reading by the folks at Casey Research that echoes my warnings: Market Moves Ahead Should be Good for Gold, Bad for US Dollar Rick Santelli Asks The Only Question That Matters J.B.G. sent: The wheels are coming off the whole of southern Europe Items from The Economatrix: Stuck On Stupid Looking Out To August As July Melts: All Hell Will Likely Break Loose Next Week Going Into Earnings Season Jobs Picture Improves–But Not In Manufacturing

The global derivatives bubble continues to inflate. According to the BIS there are now $564 Trillion in over the counter derivatives, which includes $441 Trillion in bets on small moves in the direction of interest rates. If and when interest rates spike (and they will!), the counterparty risk will be huge, and spectacular derivatives implosion could bring down the global credit market. Vince W. wrote to mention a new vehicle that is going to be made here in the U.S. at an old GM plant in Louisiana. They claim it will get 84 mpg, and have an 8 gallon gas …

E.S. suggested this at Zero Hedge: A Historic Inversion: Gold GOFO Rates Turn Negative For The First Time Since Lehman Marc Faber: China Puts Global Markets at Risk. (Dr. Doom discusses China’s credit bubble and recommends selling stocks and buying gold, citing $1,222 as a quite reasonable buy price.) Mike T. sent us this: Here’s how much your carrier makes selling your data to the Feds. No wonder they are so consistently complicit, when implementing tyranny is a profit center… Items from The Economatrix: Too Many Workers Hate Their Jobs, And That’s Hurting The Economy Sequestration Forces Cuts To Long-Term …

Argentina Applies Law That Jails Hoarders as Bread Surges I noticed that the Gold-Eagle site has been revamped, making it easier to use, especially for those of us who have slow Internet connections. Gold And Silver – It Is Silver Sending A Message Items from The Economatrix: Has The US Lost Control On Debt Market Growth?  Unbridled debt expansion at the nucleus of rising debt inequality in the United States. US total credit market debt now over 3 times larger than annual GDP Europe’s Creeping Bank Run: Bail-In Fears Grow For Big Depositors In Euro Periphery Expected Rotation out of …

The one ounce American Redoubt silver coins are now selling even more rapidly, and Mulligan Mint is doing their best to ship orders promptly. But the current low price of silver (under $19 per ounce) has caused a huge rush of orders with all mints and dealers, so longer delays are inevitable. But rest assured that your coin order will be shipped in the order that it was received. And so it begins: Digital currency seized in alleged drug law violation in Charleston. (Thanks to J.B.G. for the link.) G.G. sent: China, Switzerland sign free trade agreement. A desperate derivatives …

B.B. sent: The Federal Reserve is Paying Banks NOT to Lend 1.8 Trillion Dollars to the American People Tom Cloud: People Want Physical Gold and Silver in Their Hands Items from The Economatrix: $1.5 Quadrillion Storm:  EU Accuses 13 Banks of Derivatives Collusion Wall Street Banks Extract Enormous Fees from the Paychecks of Millions of American Workers Silver at Less Than $19/oz?  Are You Kidding?

Once again, the American Redoubt States rank well: Pro and Anti Constitution States. (A hat tip to CDV for the link.) Why The U.S. Economy Is Facing An Inflationary Time Bomb Has the US lost control on debt market growth? Items from The Economatrix: Consumer Sentiment In US Declines Less Than Forecast US Manufacturing Resumes Expansion US Economy Looks Weaker As GDP Data Is Revised First-Time Jobless Claims Rise

Life in free fall: Horrific Retail Sales In Greece Illinois ends fiscal year $6.1 billion in red The latest from Pepperdine University law professor Paul Caron’s blog: Hedge Fund Billionaire Who Gave $9.6 Million to Obama in 2012 Skirts Tax Law to Pay 15% Tax Rate A Rise In Interest Rates Could Disrupt The Derivatives Market Items from The Economatrix: Fed’s Stein Hints at September Taper Consumer Numbers Send Confusing Signal Business Activity In US Cools More Than Forecast

Brian C. sent: The Eight Least Expensive States to Live in the U.S. Argentina Legitimizes Black-Market Currency With New Dollar-Backed CDs. (Thanks to H.L. for the link.) Preppers Beware : Our “Hoarding” Can Be Deemed Illegal Items from The Economatrix: Consumer Spending, Jobs Data Point To Lukewarm Growth Meredith Whitney:  Did The Fed Just Torpedo The Muni Bond Market? New Data On Incomes, Spending, Jobless Claims; IPO Problems

James, I think that you are off base when it comes to buying guns and precious metals. Both could go down in price. The same for ammo. And it has a shelf life. So why not buy stock in companies that that do well in both good and bad times? People always buy booze, and cigarettes and Pampers and Cheerios. So why not invest in the companies that make those? What is so [deleted] special about “tangibles”? Thanks For Your Time, – G.D.C. JWR Replies: First, I must mention that ammunition has a shelf life of at least 60 years, …

The “Cyprus Model” Is Gaining Traction. (Thanks to F.J. for the link.) G.G. suggested this piece: 76% of Americans are living paycheck-to-paycheck Not Darkest Africa, but Darkest Nigeria – 120 Million Without Electricity Reader B.C. sent: The Eight Least Expensive States to Live in the U.S. Items from The Economatrix: Consumers To Factories Point To Durable US Expansion Dr. Doom:  A Lot Of Problems Are Coming … Revolution … Social Strife Bank Bailout:  Germany Requires Compulsory Levy of 8% To Savers