Category: Economics & Investing

“QE to Infinity, and Beyond!” Here are two interesting articles: Fed Keeps Interest Rates Low, Continues Bond Buying Program and How long will interest rates stay low? JWR’s Comments: The risk of rising interest rates represents a huge unknown. The Federal debt is now just barely manageable only because of artificially low interest rates. If interest rates begin to rise before the public debt is reduced to less than 60% of GDP, then the game is over. At that juncture the debt will be unserviceable and the only means of escape for our government and the Fed banking cartel will …

Larry Edelson: Why Gold’s Historic Collapse is Not Over G.G. suggested: this over at Zero Hedge: Treasury Issues Draft Floating Rate Note Term Sheet Incredible! Social Security comes after man for $895 overpayment they made to his mom, 42 Year Later. Items from The Economatrix: 12 Signs The Economy Is Weaker Than You Think US Business Cycle Index Plunges Most In 22 Months Falling Gas Prices Could Boost The Economy

Peter Schiff: A Collapse Happened In 2008, But The Real Collapse Is Still Ahead Andre D. sent: Gold buyers forced to go on waiting list Items from The Economatrix: We, As Americans, Are About To See A Major, Major Collapse In Our National Monetary System, And Our Normal Way Of Life Ron Paul On Bitcoin: If I Can’t Put It In My Pocket, I Have Reservations” ObamaCare Is A “Neutron Bomb” That Will “Decimate” Jobs In America

Sir, I often received assorted mail in flat rate VHS videotape-size USPS Priority Mail Flat Rate boxes.  I found that these will hold 27 rolls of nickels. Not near as heavy as a .30 caliber ammo can when full. Folks (like me, over 60 and female) that find the .30 cal ammo cans a bit heavy might like to use these boxes.  I just use strapping tape and run a band around the box horizontally, fill it with the nickels and then run two bands of tape around it to seal it.  They stack nicely and I can move them …

The perception of currency inflation is derived through the contextual prism of our daily lives. For my neighbors who burn a lot of gasoline commuting more than 40 miles each way every work day, the perceived inflation rate is more than 30%, per annum. And for my #1 Daughter, who’s main commercial interaction involves .22 cartridges, the perceived inflation rate is more than 200%, per annum. And for almost everyone, the fact that 32GB iPods are deflating in price because of economies of scale is a meaningless abstraction, when groceries have risen around 20% since last year. We don’t buy …

One doesn’t have to look far in the news today to catch a conundrum in any article talking about precious metals. If you read the news shops you will have noticed articles crowing titles like “Silver and Gold Have Lost Their Shine!” and “The Precious Metals Market Tanks!”. The strange thing is if you are to walk into any coin or jewelry shop tomorrow and ask to buy a few coins, you will most likely be told the wait time is several weeks, and you’ll be paying prices above the current silver price. While the news outlets are singing the …

Check Out These Insane Levels of Youth Unemployment In Europe Fed Money Printing Games Out of Gas – Karl Denninger. (Thanks to Jim W. for the link.) Bob in Virginia recommended this by Bill Gross: Here Are The Four Big Ways That The Government Will Steal Money From Bondholders While the paper market is in the doldrums, the physical metals market is searing hot: U.S. Mint Sales of Gold Coins Jump to Highest in Three Years. (Thanks to G.G. for the link.) Items from The Economatrix: Internet Sales Tax: What You Need to Know Online Sales Tax Overwhelming Passes Cloture …

Reader C.D.V. suggested this article: Spain Is Beyond Doomed: The Two Scariest Unemployment Charts Ever M.E.W. sent: Run on Guns: AR-15s Sales Soar. JWR’s Comment: A modern battle rifle is a great example of a practical, barterable tangible investment. You can only shoot a bad guy with a Krugerrand with the aid of a sling shot, and that constitutes a very inefficient use of resources. M.M. sent this ominous news from Canada: Conservative 2013 Budget May Allow Banks to Confiscate Customer’s Deposits Items from The Economatrix: Jim Rogers:  Every Government Debasing Their Currency, Gold Going Much Higher The Global Economy …

This confirms my assertion: The Spot Price of Precious Metals Is Becoming Irrelevant Pete H. sent this from Paul Farrell: 10 investing rules for the coming bond crash The drawn out impact of quantitative easing on real estate: Japanese real estate continues to struggle while Bank of Japan expands monetary base. JWR’s Comment: Back in the 1930s, folk comedian Will Rogers was famous for saying: “Buy land: They ain’t making any more of it.” The modern-day corollary is: “Avoid Dollars: They can make as many of them as they want to.” Items from The Economatrix: Jim Willie: Physical Gold Premiums …

Gold Forecast 2013: On the Verge of a New Monetary Order and Gold’s Rise H.L. sent: Syrians Turn to Backyard Refining as War Reaches Oil Gold & Silver – War Unofficially Declared on 12 April 2013 Items from The Economatrix: David Woo Warns Of Major Market Re-alignment Deflation:  A Three-Act Play Jim Sinclair:  Swiss Bank Just Refused To Give My Friend His Gold Physical Gold & Silver Shortages Are Accelerating; Premiums Exploding

Unprecedented Shortages of Ammunition, Physical Gold and Silver New standard for loan loss reserves triggers controversy A useful primer video: I Am Gold Items from The Economatrix: Fed Governor Stein Warns When A TBTF Bank Fails, Depositors Will Be Cyprus’d Americans Grow More Pessimistic On The Economy History Tells Us That A Gold Crash + An Oil Crash = Guaranteed Recession

Burke C. suggested: America The Fallen: 24 Signs That Our Once Proud Cities Are Turning Into Poverty-Stricken Hellholes Jim Rogers: It Pays To Be Worried, and To Be Skeptical Albert Edwards: Stocks Will Crash, Hyperinflation Will Come, And Gold Will Go Above $10,000. (Thanks to Jim W. for the link.) Items from The Economatrix: Prof. William Black: Felons in Charge of Financial Institutions – Banking System Meltdown Coming? Inflation Is Very, Very Low.  Time to Worry? Three Reasons the Housing Recovery May Not Last

TPC: Distribution of the Tax Burden in Obama’s 2014 Budget H.L. sent: Putin Demands Proposals to Stem ‘Alarming’ Economic Slowdown B.B. suggested: These are Perilous Times Jim Rogers Items from The Economatrix: Dave Hodges: Economic Armageddon Is Imminent There is a Run on Physical Gold and Silver, that’s why the Feds are Attacking It! This is the first time in human history in which all the world’s major currencies are collapsing together! Jobless Rates Plummet In States With Housing Recovery