Category: Economics & Investing

Hyperinflation Has Arrived In Iran. Followed, not surprisingly, by riots in the streets. G.G. flagged this: Living Through a Currency Devaluation. JWR’s Comments: Norte Americanos are advised to learn from this preview of coming attractions. Zi sent: The Stock Market Is Heading For A Third Major Crash of The Century And Monetary Policy Is “USELESS” Under Current Bleak Conditions Reader Jim W. suggested this at Zero Hedge: The ECB – EUR22 Trillion Is Missing Items from The Economatrix: Hedge Funds Lagging:  Is “Enormous Unraveling” Near? Manufacturing Snaps Back:  Is It A Turning Point Or A False Positive? US Banks Hit …

Less than 900 days for hyperinflation in the US? A “Frightening Pattern” Indicate That We Are Heading To A Massive Economic Catastrophe Unlike Anything Ever Seen And Countdown Clock Is Quickly Approaching Zero Here it comes: Americans face $3,500 fiscal cliff tax hit Items from The Economatrix: Day of Rage in Greece as More Stringent Cuts Loom Eurozone Crisis:  Spain Inching Closer to a Meltdown Death Knells for the to Sharp Slowdown in Manufacturing Why Oil Prices are Likely to Slide Further

Dear James, I really enjoy your blog and try to read it every day. My husband and I live in New Jersey. We just sold our house in May and are renting for a year while we try to figure out where to move next. Unfortunately, our home lost a lot of equity so we only have $55,000 to use towards our next house. Do you believe it is better to pay cash for a house or is it wise to get a mortgage since interest rates are so low? Our original plan was to buy our next home with …

W.C.P. suggested this video: Why the U.S. Federal Budget CANNOT be Balanced. RBS sent another video link: America’s Book of Secrets – Fort Knox H.L. sent: Cronyism Is Destroying Spain’s Future Items from The Economatrix: Deleveraging from One Bubble to Another Bernanke is Now a Kamikaze Pilot Panic Cash Withdrawals in Spain Drain Banks; Greece-style Economic Implosion Now Imminent What Key Shipping Index Signals About the Economy

An update: A week ago I mentioned that the producers of the popular Silver Bullet, Silver Shield videos commissioned the minting one-ounce .999 fine silver medallions of their own design. They are being sold for as little as $2.99 over the spot price of silver. If you order yours using the link from SurvivalBlog, we will earn a small sales commission to help defray our considerable monthly bandwidth expenses. I’ve heard that they’ve now pre-sold more than half of their planned minting of 50,000 coins. Watch the spot price of silver carefully, and buy on the dip days! AmEx (American …

Eric Sprott talks precious metals on Squawk Box. Toward the end, he is asked about physical preparedness. Eric says: “Prudence is very much warranted.” (Thanks to SurvivalBlog’s G.G. for the link.) Faber Warns “Everything Will Collapse” G.G. sent this: USPS Prepares for Second Default in Two Months Bram suggested some good monetary analysis by Charles Hugh Smith: Why QE Won’t Create Inflation Quite as Expected Items from The Economatrix: The Truth About The Fiscal Cliff New Home Sales Dip, But Prices Hit 5-Year High Dr. Gary North:  Five Mainstream Economists Sound A Warning Europe Is Now In A Completely Unmanageable …

Deleveraging from one bubble to another – Since the peak in 2008 $1.3 trillion in US household debt is gone but another bubble is brewing hidden under the rubble of the busted housing market. Precious metals market analyst Ted Butler: Transparency Impending Catastrophe: Spain Has Entered A Full-Scale Collapse And Created A Tremendous Amount of Instability Which Could Trigger An Imminent Lehman-Like Event And A Rerun of The Great Panic of 2008 B.B. sent this: Estimate of California’s real debt upped from $28 billion to… $335 billion In Forbes: Run On The Banks Would Make Fiscal Cliff Look Like A …

Sue C. sent: Analysis: As worst euro fears fade, U.S. fiscal cliff looms J. McC. sent: Corn and soybean supplies at an eight year low. Jim Rogers on Quantitative Easing: “We’re All Going To Pay A Horrible Price For This.” (Thanks to Jim W. for the link.) Items from The Economatrix: Former ECB Chief Economist Says ECB is in a Panic, as Czech President Warns the End of Democracy is Imminent Euro Crisis Even Staggers Irish Pubs Consumers Cut Credit Card Use For Second Month

G.G. flagged this: Household electricity bills skyrocket Also from G.G.: The Great California Exodus: A Closer Look In the red: From Stockton to Scranton, cities are going broke Kevin S. sent: EU heavyweights call for radical foreign and defence policy overhaul Items from The Economatrix: Financial Markets Tumble On News Of Unrest In Greece And Spain How High Oil Prices Will Permanently Cap Economic Growth Inflation Boogeyman Is Becoming Germany’s Worst Nightmare Nobel Winner Stiglitz Says Time Running Out For Europe’s Leaders Gerald Celente-The First Great War of the 21st Century Has Begun

R.B.S. recommended this article: A trip back to 1964 proves Silver creates wealth. (BTW, this has a nice correlation with the current opportunity to acquire nickels at face value.) Linda U. sent: World on track for record food prices ‘within a year’ due to US drought 13 States Now Considering Gold and Silver as Money. (Thanks to R.B.S. for the link.) Where Does Money Come From? The Giant Federal Reserve Scam Americans Do Not Understand Items from The Economatrix: Deutsche Bank Issues A Terrible Warning on the Health of the Global Financial System Unemployment Rates Rise in Half of US …

p>Deustche Bank: Western Economies Are Screwed, And Investors Face A ‘Disturbing Paradox. The article begins: “In a new report entitled Gold: Adjusting For Zero, Deutsche Bank analysts Daniel Brebner and Xiao Fu paint an incredibly dark picture of the bind the global economy is in right now. Brebner and Xiao are pretty frank about how levered up the financial system is at the moment, and they warn that the next shock will be totally involuntary and unexpected.” John Mauldin: QE Infinity: Unintended Consequences Those pesky derivatives again: Deriving the True Size of U.S. Megabanks Is Far From Simple Items from …

James Wesley: I read with interest your article on saving nickels. My question to you is why are nickels better than quarters?  Is it not easier to store a larger sum of funds in the same physical space with quarters than nickels?  If they do devalue the [printed] US Dollar by a factor of 10, then a nickel will [effectively] be worth 50 cents but a quarter will be worth $2.50.    Regards, – Richard F. JWR Replies: As a hedge against a zero (or two) being dropped from the paper Dollar, nickels (the U.S. five cent piece) and clad quarters …

Jim W. suggested this: The Next Panic: Europe’s crisis will be followed by a more devastating one, likely beginning in Japan. Andre sent us this: Concerted QE – The Beginning of Hyperinflation   G.G. suggested: Fed Wants Inflation Now, Will Clean Up ‘Mess’ Later: El-Erian More Americans Added to Food Stamps Than Find Jobs Readers recommended two interesting essays over at Zero Hedge: Bank Of America to Fire 16,000 by Year End and What Mitt Romney Also Said: A Glimpse Of The Endgame? Items from The Economatrix: Household Worth in US Fell in 2Q as Stocks Dropped Dollar Index Headed …

By way of Tam at the View From The Porch blog comes this account of multiple mass inflations in Argentina: “¡Qué Quilombo!” Here is a key quote: “What seems peculiar about Argentina’s case is the government’s Herculean effort to ignore the immutable laws of economics in their pursuit of grand larceny. The country has seen five currencies in just the past century, averaging a collapse every twenty years or so. In 1970, the peso ley replaced the peso moneda nacional at a rate of 100 to 1. The peso ley was in turn replaced by the peso Argentino in 1983 …