Category: Economics & Investing

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

I recently had the opportunity to see the 2010 documentary titled “Inside Job“, via a rented Netflix DVD. It describes the background and aftermath of the 2008 global credit crisis. I highly recommend it. We are still paying for the mistakes (and crimes) described therein, as the bailout of the financial sector and bubble re-inflation continues, to the tune of $85 billion per month, via Quantitative Easing (QE). Regulators have done nothing to rein in the risk created by the global derivatives casino, which is now even bigger than in 2007. The Fed and the Treasury are busy re-inflating the …

IRS: Cheapest Obamacare Plan Will Be $20,000 Per Family. India’s coin shortage worsens. Gresham’s Law is showing its hidden hand. (Thanks to Diana for the link.) Peter Schiff – Whatever the Fed Does, Gold Will Rally! US Economy Already Ruined. Schiff posits that the current “recovery” is artificial and the that Fed will increase Quantitative Easing. In the long run, interest rates must rise. Schiff foresees more QE, larger deficits, and another currency/sovereign debt crisis, so he is quite bullish on gold. G.G. flagged this: U.S. disability rolls swell in a rough economy Items from The Economatrix: How The Fed’s …

Travis Brown of How Money Walks On Fox Business: Is It Worth Moving To Another State To Save On Taxes? Brown says that taxpayers worth $2 Trillion have already moved. Note that $45 billion in net worth has moved out of California, primarily to Nevada, Arizona, Oregon, Texas, and Washington. The interactive web app at Brown’s site is fascinating. Speaking of voting with our feet, see the report: Location Matters, published by the Tax Foundation. Michael Noonan of Edge Trader Plus: Gold And Silver – Fed Taper? Never! Never, Never, Ever The U.S. Economy Is Close To Imploding X22 Report: …

James W. recommended: Derivatives, The Gift That Keeps On Taking. [JWR’s Comment: I’ve been warning my readers about derivatives since 2006. That was two years before derivatives CDOs torpedoed the real estate market and triggered a recoveryless recession with bailouts that have doubled the national debt and tripled our money supply. Ironically, the magical smokescreen “solution” to the ongoing recession (actually just a forestalled Depression) has been Quantitative Easing, which creates $85 billion per month out of thin air, mostly by means of buying up Mortgage Backed Securities (MBSes), which are derivatives!] The Never-Ending Charade Of Debt Ceiling Fights Items …

Stocks are about to plunge, Wells Fargo warns Marc Faber Warns “The Endgame Is A Total Collapse – But From A Higher Diving Board Now” Michael Snyder: The Greatest Debt Crisis The World Has Ever Seen Is Coming Items from The Economatrix: Pension Disaster Looms Over The Horizon: In 1980, 60 Percent Of Americans Participated In A Pension Program. Today It Is Less Than 10 Percent And The Amount Saved For Retirement Is Startling. The Percentage Of Americans That Consider Themselves To Be “Lower Class” Is At An All-Time High Jobless Claims Fall To 7-Year Low, But …

G.G. flagged this: The typical American family makes less than it did in 1989 10 worst economies in the world. (A hat tip to H.L. for the link.) Median Household Income Has Fallen For Five Years In A Row Items from The Economatrix: Prepare For Tough Times If Your Job Has Anything To Do With Real Estate Or Mortgages United States Sets Another Food Stamp Record: Households On Food Stamps At New Peak And More Americans Live In Poverty Compared To The Entire Population Of Spain A Measurement Of Our Impoverishment