Category: Economics & Investing

DIP! Spot silver closed at $29.80 on Friday. It may yet go a bit lower in this swing, but anywhere under $30 per Troy ounce is a bargain. Former Congressman Dr. Ron Paul was on Bloomberg’s Lunch Money show and was talking war and economic collapse. Are US Retirement Accounts at Risk? Items from The Economatrix: Bond Bubble Expectations Retail Sales Up Despite Payroll Tax Hike The Number One Reason To Invest In Gold The End Of The Current Fiat Monetary System Is Coming, And A Gold-Backed Currency Will Replace It

“When You Have Fiat Currency, What Level Of Value Is Real”, Santelli Asks. (Thanks to B.B. for the link.) Another from B.B.: Schiff: Sequester is ‘Best Thing We Could Have’ Items from The Economatrix: Eric Sprott:  Expect $200 Silver As The Financial System Implodes Top Economic Advisors Forecast War And Unrest Europe’s Recession Deepens As Exports Suffer Unemployment Claims Fall By 27,000

By way of Investment Watch blog:comes this video: Currency War: U.S. Cannot Absorb a Deflationary Spiral – Yra Harris Terry in Florida suggested this by Charles Biderman: Fed Creating $4 Billion in New Money Each Day, Helping to Rig Stock Market Charles Hugh-Smith, over at Zero Hedge: Don’t Worry; Be Resilient. (Thanks to Geoff B. for the link.) Items from The Economatrix: Schiff:  US To Win Currency Wars, Then Implode Sprott:  Default Coming As 850 Tons Of Gold Supply Vanish Job Openings Decrease Amid US Budget Battles

Some more “Voting with our feet” news: State taxes and the Great Income Migration. The Kindle book cited in the article (How Money Walks – How $2 Trillion Moved Between the States, and Why It Matters) has all the details. (Thanks to Mark A. for the link.) Prosecuting the Messenger: Chief Greek Statistician Threatened with Jail. (Thanks to Peter S. for the link.) And speaking of “slaying the messenger”: Federal, State Governments to Sue S&P Over Mortgage-Bond Ratings Items from The Economatrix: The Economy Is Much Worse Than The Data Show Central Bankers One Wild: What Can Investors Do? Marc …

James, The recent letter from a reader about about the gun show had some comments about pricing so I thought it would be helpful to remind readers some basic economic principles.  Prices are a natural function of supply and demand and higher prices, especially during periods of high demand, perform the needed function of allocating scarce resources to the optimum number of customers. For example, a dealer at a gun show receives a limited number of cases of ammo.  If he were to sell it at historical prices people would buy 2-3 cases each.  Now we have higher prices due …

B.B. suggested an excellent presentation by Stefan Molyneux: There Will Be No Economic Recovery. Prepare Yourself Accordingly. The charts he shows and the statistics he cites are staggering! Show This To Anyone Who Believes That “Things Are Getting Better” In America Biggest Bubbles In History-Stocks, Bonds, Dollars-Paul Craig Roberts Items from The Economatrix: Watch The Financial Markets In Europe Do Wall Street Insiders Expect Something Really BIG To Happen Soon? John Williams of Shadowstats:  How To Survive The Illusion Of Recovery World Currency System Moving Towards Catastrophe

Putin Turns Black Gold to Bullion as Russia Outbuys World Reader Jim W. sent: Silver Coin Dealers and the New Premium Paradigm The coming pension crisis: States face a $3 trillion funding gap. Only about 10 percent of Americans now covered by pensions. G.G. sent: Americans Are Tapping Into Home Equity Again Venezuelan Devaluation Sparks Panic. (Thanks to R.C. for the link.)

Top Marginal Tax Rate Now Exceeds 50% in California, New York, and Hawaii Venezuela Sharply Devalues Its Currency Jim W. sent this: Days After Freezing Prices, Argentina Bans All Advertising By way of Professor Paul Caron’s TaxProf blog: Tax Hikes Backfire, Greece’s Revenues Plummet Items from The Economatrix: $5 Gas Hits California US Postal Service Ends Saturday Delivery In August To Save Itself Are Junk Bonds Warning Stocks Are About To Fall?

Chris Duane has expanded his Silver Bullet – Silver Shield video channel page. Check it out. Jim Rogers on Fed Easing? ‘This is going to end very very badly’ Items from The Economatrix: Nearly Half Of American Families Live On Edge Of Financial Ruin Why Gas Prices Are Rising Home Depot To Hire 80,000 For Spring

The Real Story Behind JPMorgan Chase & Co.’s (JPM) Infamous Whale-Sized Trade In Credit Derivatives Kevin S. suggested this “must watch”interview of Jeff Berwick: Get Far Away From USA…Its Collapse Will Be Messy. In this interview, Berwick aptly says: “We are in the last days of this financial system in the United States. This is Zimbabwe.” Berwick is starting a “Galt’s Gulch” ex-pat community in Cafayate, Argentina. JWR’s Comment: I believe that Chile would have been a better choice than Argentina, which has a socialist government and a currency with frequent bouts of inflation. Mac Slavo of the excellent SHTFPlan …

Forbes: Where Not to Die in 2013 Diana sent this from Coin World: Fake American Eagle silver coins surface. So henceforth, if you want to stack Silver Eagles, I’d recommend buying only sealed Monster Boxes, from a reputable dealer. Dr. Gary North: The Luddites Among Us Items from The Economatrix: “Severe” Danger Looming In Corporate Bonds Jim Rogers:  Don’t Sell Your Gold And Silver Coins Beware “Credit Supernova” Looming Ahead:  Pimco’s Bill Gross

Just as I anticipated: Platinum Climbs to a 16-Month High, Extending Premium Over Gold. (I hope that some of you took my advice last October and bought platinum when it dipped below the price of gold.) Bob Bauman of The Sovereign Investor recently reported some “voting with their feet” news: “In 2009, when the Labor Party in the U.K. raised the top income tax rate to 50%, two-thirds of the country’s 16,000 £1 million earners disappeared from British tax rolls. In 2010, HM Revenue and Customs reported only 6,000 remained. Rather than increasing revenue, the tax actually cost the U.K. …

A penniless Canada: Mint begins years-long process of collecting and melting down 82-million kg in coins Gasoline costs take biggest share of household income in three decades. (Thanks to G.G. for the link.) Is a global LIBOR settlement coming? Central Bank Snuffs Out Vietnam’s Thriving Gold Market Items from The Economatrix: January Auto Sales Indicate Strong Start to 2013. Own Physical Gold & Silver As Currency Wars Will Destroy Our Money Housing Packs Punch For US Growth In 2013 And Beyond