Category: Economics & Investing

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.)

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