Category: Economics & Investing

Reader M.M. liked this piece at Zero Hedge: The Biggest Ponzi Scheme in the History of the World Jerry E. sent a link to an interview with Max Keiser, where he posits an overnight five to six percent jump in interest rates, and talks about the Edward Snowden situation. Andre D. spotted this: Italy could need EU rescue within six months, warns Mediobanca Jim Rogers: “This Is Too Insane–And I’m Afraid We’re All Going To Suffer For The Rest Of This Decade“ Items from The Economatrix: Ben Bernanke’s Real Message For Gold Investors, Translated By John Williams Dr. Paul Craig …

Whenever Margin Debt Goes Over 2.25% of GDP the Stock Market Always Crashes. (Thanks to Jim W. for the link.) Physical Gold Market In Disconnect As Premiums Hit Record Items from The Economatrix: Food, Guns, Gold: “The Record Is Rather Clear On The Side Of Commodity Money” Doomsday Poll:  87% Risk Of Stock Crash By End Of Year Housing Recovery to End Soon

James, Could you or someone you trust please explain why spot silver has dipped below $20 per Troy ounce? Those of us who don’t have the experience or ability to ferret this knowledge out for ourselves would be grateful. In addition, a forecast for how long this dip might last, would be greatly appreciated. – D.W.N. JWR Replies: The short answer to your question is that Ben Bernanke spoke and the markets panicked. All that it took to spook the markets was an indication that Quantitative Easing monetization might end in the next year, and suddenly everyone realized that the FREE …

History Shows Gold May Drop to as Low as $900 An Oz.—And Still Remain in a Bull Market The new “modest budget” indie movie Alongside Night is now in early release. The film is based on Agorist-Libertarian activist J. Neil Schulman’s novel of the same name. It seems that some gold and silver coins deserve “best supporting” awards. Jim W. sent this: Fed Faces ‘Treacherous’ Path in Exiting its QE. Here is a quote: “Exiting too fast will crash the real economy, while exiting too slowly will create a huge bubble and then crash the financial system.” Get Ready for …

Jim W. sent a link to some analysis of the recent jump in the 10 Year Treasury rate: The Nightmare Scenario Gold-Bashing Mythology Hits New Crescendo. (Commentary by Jeff Nielson.) Marc Faber: People With Assets Are All Doomed The News, the Spin, and the Reality of the FOMC Meeting No great surprise: Maryland, Virginia, D.C. escaped government spending cuts. (The D.C. Beltway’s deeply entrenched bureaucratic aristocracy rarely suffers.) Items from The Economatrix: Retirement Shortfall May Top $14 Trillion Peter Schiff:  Fed Is Trying To Ref late A Phony Economy Also from Peter Schiff:  “Vicious” Gold Rally Coming

Moody’s takes rating actions on nine Hong Kong banks. JWR’s Comment: The timing of this is suspect. Is it a coincidence that Hong Kong just dragged its feet on the rendition of NSA whistleblower Edward Snowden, under the U.S./Hong Kong extradition treaty of 1996? The payback, apparently, is a down rating by an “independent” ratings firm. Venezuela on the Brink of Hyperinflation. (Thanks to Jim W. for the link.) Mortgage Rates on the Rise; Repeat of Lead-Up to 2008? JWR’s Comment: Interest rates are crucial. Once rates rise substantially then it will become impossible to service the Federal debt without …

Some cogent observations by Bob Owens: Where is all the rimfire ammo? The new modest-budget indie movie “Alongside Night” is now in early release. The film is based on Agorist-Libertarian activist J. Neil Schulman’s novel of the same name. It seems that some gold and silver coins deserve “best supporting” awards. G.E.C. suggested: All the Gold in Fort What’s-Its-Name Michael Pento: Market Calls Fed’s Bluff Jim W. liked this piece by Alasdair MacLeod: Gold is being supplied by western governments. Here is a key quote: “From the point of view of the western central banks, as well as the bullion …

PTR Industries (the HK clone maker) Votes With Their Feet: Gun-maker expected to move into Horry County. South Carolina was a good choice. (Thanks to Howard S. for the link.) And on a similar note: Ruger Looking Into Rockingham County North Carolina. (Our thanks to F.G. for that link.) These chaotic gas lines give us a preview of collapse: Egyptians Denounce Fuel Shortage Reader P.P. sent: World economic group calls for global exchange of tax information to fight evasion. A key quote is that the OECD wants data from all corporations and individuals “flowing freely from banks, investment houses and …

Has inflation fueled the two income household trap in the US? How inflation has eroded the purchasing power of the working and middle class. Canada has its own woes, including some mayors with a low regard for the law similar to that exhibited by many members of the Mayors Against Illegal Guns pressure group. B.B. sent: The Tax Man Cometh—For Your Bitcoins Items from The Economatrix: Watch Your Cash: New BAIL-IN Rules Will Force “Failed Bank Losses On Investors” The 50 Best Employers For Boomer Workers Housing Starts In US Rose In May To 914,000 Annual Rate

The stock markets and the precious metals markets all got hammered on Thursday (June 20, 2013), following some comments by Ben Bernanke. Don’t be spooked. Don’t be fooled. The Fed and Treasury Department are essentially locked in to QE to Infinity. They may try to “taper”, but it probably won’t work. Today’s news does nothing to change the market fundamentals. Silver will remain in a bull market for as long as the government continues to grossly over-spend. So when the price of silver gets temporarily pushed down by these rumors, just look at it as another buying opportunity. Over at …

Analyst Says China’s Credit Bubble Is Unlike Anything In Modern History. (Thanks to Andre D. for the link.) Four current trends in the housing market: Rents holding steady nationwide, young home buyers, bidding war trends, and going after strategic defaulters. Shock: Iceland Defies EU, Freezes Membership Bid Items from The Economatrix: Obama Rewards Wall Street Again, Thwarts Reform By Sacking Gensler Financial Chaos, Disappearing Freedom & Hyperinflation Bond Bubble Threatens Global Financial System

Congressional hearing video: $9,000,000,000,000 Missing From The Federal Reserve. (Why is it that the larger the dollar figure, the less the accountability? Just ask the Boptrotters–some of whom were convicted over sums less than $100–if their scrutiny and punishments were proportional.) Reader Jon S. pointed me to this eloquent essay by Mark Hendrickson, at Forbes: The Pandora’s Box of Progressivism: Positive Law Items from The Economatrix: Consumer Sentiment Slips In June Emergency Manager:  Detroit Will Default on $2.5 Billion it Owes US Wholesale Prices Rise More Than Forecast On Fuel, Food

I noticed that spot price of silver has gone into its usual summer doldrums. Silver was under $22 per ounce, the last time I checked. Low points like this are an advantageous time to buy. It really doesn’t matter whether you buy pre-1965 junk silver, or one ounce American Redoubt silver coins, or some other sort of bullion silver, if you look at this on a macro scale. In the long run there will simply be a few prescient people with real money, and a much larger number of people who will be holding worthless paper. Yes, be a silver …

$106 Trillion Deficit? Ron Johnson’s Transformative Proposal Rail Traffic Continues To Stagnate Looming Minnesota Cigarette Tax Hike Spurs Buying Frenzy “Gold Hoarders” chastised in June of 1933. (Thanks to RBS for the link.) Items from The Economatrix: S&P Says US Credit Rating Now “Stable” Is Gold at a Turning Point? Demand Sags at $66 Billion in Treasury Auctions Amid Bets on Fed