Category: Economics & Investing

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.)

Steve Forbes: Fed Sinking Real Economy; Calls QEs “Titanics” European Union Likely To “Bail In” Large Depositors US Oil Production To Shock Global Energy Markets California government benefiting from rising property values. (With inflation, government always wins.) Items from The Economatrix: US Banks Buy Gold Futures In Dramatic Position Change Retail Sales Rise Unexpectedly

We saw this coming: Global Market Rout Spreads Reader Denise in Florida spotted this: Ceiling suspended: US takes on $300 billion in new debt after hitting $16.7 trillion. The article begins: “America’s ticking debt bomb has been reset. Washington has suspended the debt ceiling, setting a date, and not a concrete dollar sum as a deadline, an unprecedented first in US history.” Fed’s Dudley: Will Take 3 to 4 Months to Decide on Tapering. JWR’s Comment: In my estimation The Fed, Treasury, and their derivatives trading clients are now so addicted to QE that they will utterly destroy the Dollar …

James, On the 22nd of May you linked an article titled “Map divides U.S. based on flow of cash transactions.” It is interesting to note, though not exactly that the borders somewhat resemble the map of Federal Reserve district bank territories. Naturally this should not be a surprise but certainly interesting to see how effective they are at controlling cash. – Dave in Florida

Ammo shortage continues across U.S. At Barron’s: This Time, Gold Bugs May Have a Point “Scrutinize those Tea Party types? I’ll get right on it, sir!”. (And now she is pleading the Fifth Amendment.) Fierce Finance reports: Delays at all levels in mortgage settlements More mindless blathering over at Rachel Maddow’s site: Deficit reduction picks up speed. Gosh, could part of this “great success” be due to the fact that they’ve more than doubled the money supply by creating money out of thin air with Quantitative Easing in the past three years? To extend this logic, if they just magically …

Jeff H. sent this fascinating map: Map divides U.S. based on flow of cash transactions F.G. sent: California Approves $92 Million Ammo Tax To Combat Gun Violence. “This is in addition to Dickinson’s AB 760, which would impose a five cent tax on every round of ammunition sold in California.” Also from F.G., some “voting with their feet” news: Beretta Leaving Maryland After Gov. Mandates Strict Gun Control Laws Cameron flagged this item: Thousands of French Households Taxed 100% Items from The Economatrix: City of Detroit Ii “Financially Insolvent” Detroit’s Broke; Could Bankruptcy Lie Ahead? Stamp Prices Could Rise Again

Andrew Maguire: Physical Demand Shows Gold In Massive Bull Market. (Thanks to Jim W. for the link.) US regulators adopt weakened rule on derivatives trading; critics say large banks to benefit Doug Noland: Financial Euphoria H.M. sent: Slovenia’s shaky banks bring a downgrade from Fitch Items from The Economatrix: Our Current Financial System Is So Toxic, A Collapse Is Imminent The Fed Is Creating Class Warfare And The Recovery Is Being Distorted Global Hyperinflation Coming

Deepcaster: Biggest Bubble About to Burst Sending up the test balloon: The Cashless Society Arrives in Africa. The “Multipurpose” Biometric National Identity Smart Card Doug Casey on Conspiracies, Gold and the Continuing ‘Greater Depression’ of the World’s Economies Items from The Economatrix: Fed’s Plosser:  We’ve Dug Ourselves A Very Large Hole World Bank Insider:  Western Power Structure Collapses Stanley Druckenmiller: Bernanke Running The Most Inappropriate Monetary Policy In History. The Commodity Situation Is Deadly, And The Aussie Dollar Will Come Down Hard. I See Storm Coming, Bigger Than 2008

The Slow, Agonizing Death Of The American Worker IRS tax exemption/Obamacare exec got $103,390 in bonuses Treasury Knew of I.R.S. Inquiry in 2012, Official Says Items from The Economatrix: These 20 Charts Show That The US Jobs Market Continue To Be A Huge Mess The Price Of Copper And 11 Other Recession Indicators That Are Flashing Red Deflation Spreading Worldwide

Reader Ben H. sent: Argentines are now allowed to know the real rate of inflation, thanks to their courts The facts behind the mountain of student debt: 13 percent of students owe more than $50,000 and nearly 4 percent owe more than $100,000. Items from The Economatrix: Marc Faber:  “Something Will Break Very Badly” The Economic Collapse of Japan Is Now In Progress — All The Elements Are In Place For A Debt Crisis Fed’s Fisher To Santelli: “This Can’t Go On Forever”

Michael W. sent the latest coin debasement news: Stivers losing patience with reluctance to change change And speaking of nickels: The Nickel-Hoarding Billionaire. Here is a key quote: “‘Not gold futures. You need physical gold,’ Bass declared to Lewis. When the author asked Bass what investment advice he would offer to his mother, the reply was a blunt ‘Guns and gold.’ Want to invest like one of the most successful hedge fund managers of the 21st century? You might not be able to afford gold, but anyone who buys firearms, ammo and nickels at face value will be doing a …

Derivatives warning from Bill Fleckenstein: Markets Could Be On The Verge Of A ‘Blowup’ Thanks To Japan. (Thanks to B.R.G. for the link.) Andrew in England forwarded a link to some more claptrap from the Wall Street cheering section: Why Doomsters Who Predict The Collapse Of Money Are Wrong. These pundidiots see nothing wrong with tripling the money supply in less than three years. Someday they will wish they learned how to sprout beans. And here is an opposing view: Author Dmitry Orlov on why he believes the U.S. is on the brink of collapse…and how to survive it. (SurvivalBlog’s …

On Monday (May 13, 2013) I did my best to intervene and help mediate between Chris Duane and the Mulligan Mint to get them back to the bargaining table. I even suggested some potential terms of agreement. But they are still deadlocked. I’m afraid that this won’t be resolved until their controversy goes to formal mediation or to court. This is a very sad situation. I was hoping that they’d be willing to quickly settle this like gentlemen, but the rhetoric (at least on one side) has become so vitriolic that I don’t foresee an amicable resolution anytime soon. The …

Reader F.G. sent: Ruger to Open Third Plant – Expansion for New Guns B.B. mentioned this by Lord Monckton: The Dollar and the USA are Toast Federal Reserve ZIRP has essentially destroyed household income growth: Households headed by those 45 to 54 see their real household income growth drop by 16 percent from 1999. Items from The Economatrix: Over at Mac Slavo’s excellent SHTFPlan blog: The Mathematical Reality Is We Are Losing Over 600,000 Jobs Per Month That Have Been Hidden From View Generation J(obless):  A Quarter Of The Planet’s Youth Is Neither Working Nor Studying Visualizing the Collapse of …