Category: Economics & Investing

B.B. sent: Marc Faber Spells it all out in 6 minutes Karl Denninger warns against adopting the Bitcoin currency: BitCon: Don’t. JWR’s Comments: I use Bitcoin strictly for privacy, convenience, and as an alternative to PayPal, which has anti-gun management. (We accept Bitcoins for Ten Cent Challenge subscriptions.) I never let more than 15 BTC accumulate in my wallet. Bitcoins are not an “investment.” Since they have no tangible backing whatsoever, there is a potential for a Bitcoin crash. And, of course, if the Internet ever goes “poof”, then so will your BTC balance. If you want to invest your …

Pipelines Can’t Handle North American Oil Boom Russia to ban cash transactions over $10,000 Jim Rogers: Put Your Money In Hard Assets, Especially Farmland and Agriculture Items from The Economatrix: Cyprus Bail-Out: Savers Will Be Raided To Save Euro In Future Crises, Says Eurozone Chief Fear & Loathing Grips Cyprus As ECB Hastens Debtline Eurozone Economy Now Expected To Sink Even Deeper Into Recession; Bank of Cyprus Chairman Quits As Heads Roll After Bail-Out Debacle

Necultchurny! The haircut news from Cyprus just got worse: “This morning Sky [News] reported that the levy on balances over €100,000 had now increased to 60%…” This now qualifies as full scale bank robbery. Ricky L. sent a link with some disturbing news: Fake 90% Silver U.S. Coins. Silver dollars are most often faked, but even smaller dominations should now be scrutinized. Bill Whittle: Canaries in Coal Mines You Will NEVER Look At MONEY The Same AGAIN. Items from The Economatrix: No Matter Outcome, Cyprus Crisis Is Blow To Business (And To Bank Customer Confidence Worldwide) International Monetary Fund (IMF) …

Say Goodbye to the Purchasing Power of the Dollar — Mr. Bernanke goes to Crazytown Reader L.C.A. sent a link to some alarming charts on food an oil prices. Following the global credit collapse of 2008, inflation has returned with a vengeance. Peter Schiff explains how a US depression can cause a global ‘death spiral’ Too big to fail or ignore: How the US went from over 13,000 banks in 1987 to 6,000 today. $7.4 trillion in deposits backed by $32 billion dollars. (It is high time that we pull our money out of this high stakes casino. Build up …

The recent experience in Cyprus set a dangerous precedent. With similar debt levels in Portugal, Italy, Ireland, Greece, Slovenia, and Spain, the European Banksters are likely to stage more heists. I suspect that there will be bank runs and some draconian withdrawal limits will be imposed. And FWIW, I’m not the only one predicting this. Oh, and I should also mention the Debt to GDP levels are even worse in the U.S. and Japan than they are in Europe’s southern tier. The bank runs could quickly spread from Europe. Be ready for them. Keep plenty of cash at home, and …

Toby Connor: The Dollar and the Real Inflation Story Stanford University Kills Popular Course on Free Market. (Thanks to F.G. for the link.) Dr. Gary North: Housing: Addicted to Fiat Money Banks criticized for moving into payday loans Items from The Economatrix: Quick Update on Cyprus Cyprus Shows Your Savings Will Be Stolen!  UK Theft Will Be By Means of High Inflation Sinclair:  Cyprus, Gold, Russia and a New Monetary System Spain Brings Pain to the Investors Words Oof Warning:  Get Your Money Out f European Banks

Reader B.B. suggested: Paul Craig Roberts: Triple Bubble Implosion Coming I Moved my Money Out of the Stock Market-Laurence Kotlikoff F.G. suggested: NPR’s ‘This American Life’ spotlights Hale County, where 1 in 4 are on disability. Steve Saville: The Fed Continues To Pump Aggressively Items from The Economatrix: Americans Still Doubtful About Stock Market, Economy Bernanke Fails To Answer Concerns About A Cyprus-Style Seizure Of American Bank Deposits The Fed Has Already Imposed A “Cyprus Tax” On US Savers Fitch Puts UK On Review For Downgrade

Cyprus Salvaged After EU Deal Shuts Bank to Get $13 Billion. (A 40% higher haircut for large depositors! The Russians are fuming.) Rick Rule: Gold Fear Trade, Silver Greed Trade, Platinum Math Trade NY Times: Younger Generations Lag Parents in Wealth-Building Silver Prices Before the Monetary Collapse Michael Pollaro: Cyprus, Anything But Unique and Why to Worry Items from The Economatrix: Federal Reserve Sees Slow Recovery For Years To Come Veteran Unemployment Dropped To 9.9% In 2012, Though Still Higher Than Non-Vets FedEx Raises Red Flags About Global Economy

Swiss To Vote On Gold Repatriation UK faces Fitch downgrade over debt levels H.M. suggested: The Lessons of Cyprus: NRD’s Asset Seizure Risk Cube Charley S. sent: As Cyprus Implodes, Bitcoin Interest Explodes Senate Passes $3.7 Trillion Budget, Its First in Four Years Cyprus tax mess: If 6.7 billion euros is needed to secure the bailout, as it is the latest, that means a taxation of 19.1%. Items from The Economatrix: Sinclair:  Lagarde’s IMF Disaster Forces Bernanke Out Of Fed Cyprus To Keep Banks Shut Into Next Week As It Seeks Deal To Avert Disaster Forget Cyprus, Nobody is Stealing …

A new “Let’s Rip Off The Russians” plan? Cyprus weighs big bank levy; bailout goes down to wire. Tarrant lawmaker seeks to create Texas Bullion Depository Cyprus Says It’s Close to Bailout Deal as Bank-Deposit Tax Back ‘on the Table’ Is Cyprus deposit levy the first sign of widespread wealth tax? What You Think Is True Might Be False and Costly! Items from The Economatrix: Pictures From a Cyprus ATM Line [Cheryl’s Comment: Imagine if this were Los Angeles, San Francisco, Chicago, or New York, where there are quite a few more people…] The Cyprus Crisis Isn’t What It Seems …

If the US markets are considered the “safe haven” amidst all the recent EU turmoil, then why isn’t the US Dollar Index skyrocketing? (Mr. Market has some foresight.) And if the global economy is in “recovery”, then why is the Baltic Dry Index for shipping rates back in the dumpster? (JWR’s Comment: Sounds like more like a “Lohan” recovery to me, to wit: she’s checked into rehab, but there is no willingness to actually change.) US Begins Regulating BitCoin, Will Apply “Money Laundering” Rules To Virtual Transactions I found this linked over at Gold-Eagle: The Dark Truth About The Safety …

Cyprus banks shut until Tuesday [March 26th] amid scramble for Plan B EU gives Cyprus bailout ultimatum, risks euro exit British Politician’s Warning to Europeans With Cash in the Bank: ‘Get Your Money Out While You Can’ Diana V. sent: For Jittery Spaniards, Bitcoin Is Looking Better and Better The Revenue Deficit From Progressive Tax Rates Items from The Economatrix: Inflation Picks Up, But Still Hovers In The Fed’s Comfort Zone Jobless Claims Fall Again As Labor Market Improves Americans Spent More On Gas, Less At The Mall ADP:  Private Sector Job Growth Remains “Sturdy” Ick!  America’s Economic Signals Are …

A new record: 13 Million Silver American Eagles Sold in First Three Months of 2013. (Thanks to Doug C. for the link.) Reader Mark in Rochester wrote this reminder to Americans: “With all this talk of Cyprus and the sovereign debt levels in Europe’s southern tier, we shouldn’t got forget that our debt-versus-GNP rate is higher. (See this article from last November.) And remember that Bernanke is still creating $85,000,000,000 per month ($272 per person, per month) via Quantitative Easing monetization to bail out his buddies in the banking industry.” G.G. flagged this from Bill Freeza in Forbes: How To …