Category: Economics & Investing

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

Pastor C. sent this: Liquidity Can Overcome Common Sense For Only So Long Jim W. liked this piece by Professor Allan H. Meltzer: Quantitative Quicksand The One Chart That Shows Just How Stuck Our Economy Is Items from The Economatrix: World Bank Cuts Global Outlook as China Slows, Europe Contracts Inflation at 53-Year Low Belies US Demand Vigor The Reality About Today’s Consumer Economy Oil Rises On Mid-East Unrest

Monty Pelerin: Why Things Will Get Worse – Much Worse Over at Zero Hedge: Stunning Images From China: Ten Thousand People Waiting In Line To Buy Gold Items from The Economatrix: American Dream Is Now A Part-Time Job and an Apartment El-Erian Grades US Economy a “B” Wal-Mart Warns of Economic Disaster

Analyst: We Are Seeing A Farm Bubble In The Corn Belt. (Thanks to Jim W. for the link.) G.G. flagged this: California on the Brink: Pension Crisis About to Get Worse H.L. sent: Venezuela Launches Electronic Rationing Card Items from The Economatrix: Jobs Disaster Continues, But Congress Debates Increasing Immigration? Three Reasons The Jobs Numbers Were Bleh Unemployment Problem Is Bigger Than NYC & LA Combined

Why Supply and Demand Doesn’t Matter for U.S. Oil Greg Hunter: We’re a Long Way from the 1970’s. (Thanks to Jim W. for the link.) The Crunch In Emerging Markets May Cause The Fed To Delay Tightening. JWR’s Comment: Yes, and your local crack head will give you lots of excuses why he has delayed “tapering” his habit, too. It is obvious that our government is now absolutely addicted to creating free money. And the fact that they are foolishly creating Mortgage Backed Securities (MBS) derivatives in this process is reinflating the bi-coastal housing bubble. This will all end quite …

A SurvivalBlog reader in Belgium who prefers to remain anonymous wrote to mention three noteworthy changes: “…in Belgium in the last two weeks cash transactions were limited, transactions in gold and silver were limited, and the historical weapons list abolished which [previously] allowed us to buy [some antique cartridge guns] without a permit. These had included many older military rifles such as the Lee-Enfield, Mosin Nagant, Schmidt-Rubin, etc.” Pat Cascio flagged this: Gun ammo running out in Australia as US citizens buy big. A Bitcoin documentary in the making: “Can a newly married couple survive when every living necessity can …

Getting ready for a cashless society? France Prohibits Sending Currency, “Coins And Precious Metals” By Mail The Maduro era: Venezuela hit by fears of hyperinflation and recession Silver Prices: Paper, Physical and the Coin Dealer FDIC closes North Las Vegas bank; will reopen under different ownership Items from The Economatrix: Financial Insider:  “We Are Moving Into The Last Stages Before An All-Out Collapse” Greenspan: Taper Now, Even If Economy Not Ready; Marc Faber: Even QE99 Won’t Help Us May Jobs Reports “Pleased No One” Says Paulsen

Taxing Coin Sales: A Bureaucratic Nightmare In The Making? Bread, butter, and food stamp economy: Is the US developing a permanent under-class of citizens economically? Richard Russell: Silver, Gold & A Coming Stock Market Crash Over at Silver Doctors: COMEX confirms that its gold and silver inventory reports are fraudulent. Items from The Economatrix: Real Unemployment Rate:  11.3%?  Nope.  29%. Economist:  Labor Market Just Not That “Healthy” May Jobs Report; Government Data Grab

Spot silver took a substantial drop on Friday, closing on the COMEX at $21.69 per ounce. A dip like this would be a good time to buy. And speaking of silver, Mulligan Mint is cranking out the one ounce American Redoubt silver coins in quantity, and the shipping delays are getting shorter. For those who have been waiting, thanks for your patience. India Central Bank Prohibits Sales Of Gold Coins. (Thanks to G.G. for the link.) Lifestyles of the Los Angeles flippers: Big money being invested in flips. Boyle Heights and other interesting market observations. Items from The Economatrix: Weekly …

Introduction There are two questions that every gun owner will be asked to address in the near future: 1. Do you own and store firearms in your home? 2. Do you want your children and their children to inherit your firearms without undergoing a background check? Question 1 is taken from a random selection of medical portal entrance questionnaire forms. The question appears on the form along with questions about swimming pools, drugs, alcohol etc and asks if each identified potential risk is present in the patient’s household. It is not a random question for philosophical consideration. It has recently …

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