Category: Economics & Investing

At Seeking Alpha: Why the Dow Could Hit 20,000 in Three Years Mac Slavo: We Have Blown the Largest Bubble in the History of Mankind G.G. flagged this: Doomsday poll: 87% risk of stock crash by year-end Surprise! Your Bitcoins May Be Taxable Income to the IRS Items from The Economatrix: Peter Schiff: Fed’s Advisory Council Admits We’re Screwed UCLA Economist Forecast Paints Dismal Picture of Economic Recovery Retailers’ Sales Rise in May, Spending Stays Moderate Remember The Sequester?  It’s Finally Dinging The Economy

S&P 500 Crash Warning: Margin Debt Surpasses 2007 Danger Levels The supply and demand math can’t be avoided: Summer Is Lyme Disease Season. The Price of the Drug to Treat It Just Exploded. Once again, those of us who wisely stocked up are sitting pretty. The Roubini – Faber Debate South African Rand Leads Emerging Market Rout. Rationalizing and pushing the debt limit: The academic battle to open the gates on unlimited digital debt monetization. G.G. suggested this: Nine reasons why the four-year-old US economic recovery is closer to awful than awesome Bread, butter, and food stamp economy: Is the …

News headline from Wednesday: Markets Around The World Getting Smoked — Dow Falls Below 15,000 The mainstream investors catch on, belatedly: Gun collecting: Worthy investment or risky business? (Thanks to H.L. for the link.) Collapse Isn’t Coming -We’ve Already Begun (an interview with David Quintieri that highlights the derivatives timebomb.) Jim Kim of Fierce Finance asks: Is a credit bubble about to pop? Promises by one or more third party governments must have been made! Rhode Island-Based Firm Announces Bid For Massive Amount Of Outstanding Greek Debt U.K. gang steals $775,000 – on just ONE American Express Black card. Items …

Just as we assumed: Red States Have Most Economic Potential. (A hat tip to H.L. for the link.) This Crazy Extend & Pretend Economic World. Here is a quote: “The Japanese government spends 24% of its annual revenues on interest expense, but only because the average interest rate is quite low. If interest rates rise to 2.2%, their interest expense will consume 80% of the government revenues.” Reader Bob G. suggested this: The Four Big Risks Massive Money Has Brought to the U.S. Economy The price of Austerity in Italy: Homemade Bread The Feds Seized Another Bitcoin Site. Items from …

Reader J.M.R. suggested: The Coming Guaranteed 48% Real Estate Crash J.B.G. sent: Venezuela police seize 2,500 rolls of toilet paper and ‘Unbelievable’: Venezuela Shortages Move Far Beyond Just Toilet Paper Peter Schiff: The Great Reflation There have been more revelations about Bloomberg’s financial spies. Items from The Economatrix: 10 Reasons Why So Many People Are Moving To Texas Consumer Spending In U.S. Unexpectedly Declined In April On Crushing Student Loans, Worthless College Degrees, And The Millennials

Does this sound familiar? How A Trip To Costco Can Work As An Investment Strategy. Buying in bulk at Bog Box stores like Costco is described in detail in the “Rawles Gets You Ready Preparedness Course. It is now priced at less that $20, and you’ll get immediate delivery, via digital download. Why does this not come as a surprise? DoE Lost Billions in Deal with Tesla G.G. flagged this: Marc Faber: “People With Financial Assets Are All Doomed” Silver Short Squeeze Scenario 420 Jim W. sent this commentary on deleveraging from Jim Noland at The Prudent Bear: It’s Going …

Reader Mike M. sent us a Porkchop Express report on some Big Trouble From Big China: Smithfield Foods, the world’s largest pork producer, is being bought by Shuanghui–at $5 billion, this is the largest-ever planned buyout of an American company by China. Curious… IRS’s Shulman had more public White House visits than any Cabinet member 157 visits! Apparently the White House had some deep concern about taxes. Perhaps BHO felt deep anguish about assuring tax fairness, or…? Chart of the Day: Euro Unemployment Hits Its Worst Level Ever All Time Record Gold Transactions Reported By LBMA Items from The Economatrix: …

Big Dang Bubble, The Next Generation: New York Stock Exchange Margin Debt Hits A New Record, Surpasses 2007 Figures Ambrose-Evans Pritchard: No saviour in sight as world credit cycle rolls over. (Thanks to J.B.G. for the link.) Matt The Teacher sent: Why is Progressive Insurance Lying About their Spy Devices? Basel III: How The Bank For International Settlements Is Going To Help Bring Down The Global Economy Items from The Economatrix: Impending Financial Collapse–The Grand Finale:  Here Is What’s About To Happen To You Jim Willie:  Coming To A Climax With Gold At $7,000/Oz. US May Auto Sales Seen Shaking …

The inevitable Liberty Reserve case fallout: World’s Largest Bitcoin Exchange Announces That Anyone Depositing Currency Will Need To Be Verified. ( A hat tip to Jim W. for the link.) R.B.S. sent: Nine Worst Recession Ghost Towns in America. The bottom line is food: We Are Now One Year Away From Global Riots, Complex Systems Theorists Say. (Thanks to Bob G. for the link.) Andre D. sent: German Finance Minister Schaeuble Warns of Revolution Items from The Economatrix: There Is Now A 100% Chance Of A Market Collapse Basel III:  How The Bank For International Settlements Is Going To Help …

Reader Bob J. sent: Step Inside The Connecticut Gun Factory That Is Leaving The State In Protest. The article includes a nice collection of photos. And you have to love a battle rifle where the magazines only cost as little as $1.50 each. This does not bode well for Bitcoin: Prosecutors crack down on virtual money firm Robert G. sent: The Fiat End Game: Preparing For A Way Forward Further evidence “spot” metals prices have become irrelevant: US Mint Resumes Selling One-Tenth Ounce Gold Coins… At A 40% Premium To Spot. Thanks to Jim W. for the link. Items from …

Michael Z. Williamson (SurvivalBlog’s Editor at Large) spotted this: Passed from War to War’: Germany’s Small Arms Exports Double. Mike’s Comment: “This news story has been picked up by most German major papers. It is being seen as a way to attack Angela Merkel’s “Merkel Doctrine”. I believe it is safe to say that this might decrease the number of German Federal International Small Arms Export Licenses. This might impact the supply of H&Ks and Walthers in the US, which may push up retail prices.” Mike also flagged this from Stratfor: The Growing Importance of the Arctic Council The Japanese …

SurvivalBlog reader Bob in Manassas, Virginia sent a strong word of warning that stock, bond, and derivatives traders now leveraging to the hilt: Investors Are Borrowing Like Crazy To Leverage Up Their Stock Market Bets. Bob’s comment: “You have often spoken of the risks associated with derivatives. In addition to that risk, the article here demonstrates that investors have historically low (negative) net worth in their accounts due to margin leverage. I would suggest that one strongly possible consequence is that because most of these are institutions of one sort or another and most are using computer-based trading, when the …

UK Came Within Six Hour of Having No Natural Gas, in March Obama Intends to Collapse US Economy – Ann Barnhardt Gold [to] Silver Ratio Redux J.F.J. suggested this essay by Gary Horne: The New Barbarians

I’d like to offer my thoughts on wealth preservation, investment and insurance for the modern prepper. In terms of qualifications I’m a Fee-Only Financial Planner and Registered Financial Consultant who owns his own business and services clients with millions of dollars down to just a few thousand dollars. Several of my clients would qualify as preppers and have engaged me on these issues. I’ve been an avid SurvivalBlog reader for several years now and I have been modestly prepping for most of that time. Allow me to begin by stating my presuppositions on the state of the economy and the …

Editor’s Note: The Economatrix is on vacation, but will soon return. Reader R.C. sent: Trouble on the farm: ‘We face a grim future’ It sounds like they are “Partying like it’s 1999”: Amateur investors tap 401(k)s to buy homes. (Thanks to G.G. for the link.) Armstrong: Mad Max Begins in Spain? (Thanks to Jim W. for the link.)