Category: Economics & Investing

Okay, the Fed’s recent decision to boost its monetary stimulus (a.k.a. “money printing,” “quantitative easing,” or simply “QE“) by another $45 billion a month to a combined $85 billion per month demonstrates an almost complete departure from what a normal person might consider sensible. To borrow a phrase from Joel Salatin: Folks, this ain’t normal.  To this I will add …and it will end badly. If you had stopped me on the street a few years ago and asked me what I thought would have happened in the stock, bond, foreign currency, and commodity markets on the day the Fed …

B.B. suggested some recent commentary from Peter Schiff: No Way Out More socialist buffoonery: France’s Jean-Marc Ayrault slams flight of the ‘greedy rich’ (JWR’s Comment: Gee, and they wonder why they are leaving. I suppose that wife-beaters wonder the same thing.) 55 Reasons Why California Is The Worst State In America And The Entire State Is Rapidly Becoming A Bright, Shining Example Of Everything That Is Wrong With America Items from The Economatrix: Job Openings in US Rose in October to Four-Month High Detroit “Bankruptcy is a Possibility” Jobless Claims Fall to Pre-Sandy Levels

Denninger: The Real Problem With America: Morality M.E.W. sent: How Fed’s next trick will hurt bonds: Another bond-buying program seems likely as the Federal Reserve tries to boost the economy. But long term, it will lead to higher interest rates, inflation and bond market turmoil. Baltic Dry Plunges By Over 8% Overnight, Most Since 2008. (Thanks to Stephen M. for the link.) Items from The Economatrix: Massive Bank Cyberattack Planned Silver Outlook For 2013 Retail Sales Bounce Back

Roubini: Bernanke Just Launched QE5 Will the Real Federal Deficit Please Stand Up? $222 Trillion! KAF sent: 526,421 family farms threatened by new death tax Items from The Economatrix: Gold is a Leading Indicator of Monetary Distress Sales of American Gold Eagles Soar 15 Signs That The Economy Is Rapidly Getting Worse As We Head Into 2013

Over at Zero Hedge: Art Cashin Previews Our $202 Trillion Destiny Reader Andre D. recommended this essay: The West is signing its own death sentence Pam C. wrote mention: “In most banks, the bulk teller is the person in charge of the ordering of currency and the vault. The bulk teller is normally stationed nearest the vault and handles the commercial deposits. This is the bank employee that you should contact about bulk ordering nickels.” Items from The Economatrix: US Stocks Rise With Metals On China; Italy Bond Plunge The Coming Derivatives Panic That Will Destroy Global Financial Markets Will …

Bernanke’s Eternal ZIRP of Bliss: Fed Says It Will Keep Key Interest Rate Near Zero Until Jobs Come Back. [JWR’s Comment: That may be the goal, but if Uncle Sugar keeps on prodigiously buying its own bonds, then the global market may have other ideas about the direction of American interest rates.] And QE-4-Ever: The Federal Reserve on Wednesday announced that it will launch a fourth round of quantitative easing (“QE4”) Foodstamps Soar By Most In 16 Months: Over 1 Million Americans Enter Poverty In Last Two Months Items from The Economatrix: Startling Look At US Job Demographics By Age …

Peter Schiff: Many Other Cliffs Await the US Economy Jim W. suggested this from Alasdair MacLeod: Short squeeze ahead? Gold futures market heading for crisis. Yishai sent this:Insane: Liberals Contemplate $1 Trillion Platinum Coin to “Solve” Debt Limit Issue R.B.S. sent this from Oregon: Overdue Portland sewer bills to become property tax bills The World’s Strangest Currencies Items from The Economatrix: The Straw That Breaks The Euro’s Back:  Euro Crash Imminent? Amid “Cliff” Stalemate, Main Street Deteriorates Triple-digit Recession, AAA Loss Loom For UK

US citizens leaving the country to avoid stiff tax bills Euro Area Pushed Into Recession as Trade Slows, Spending Drops Jim W. suggested this: Research Shows ALL Paper Money Systems Failed Items from The Economatrix: How To Prepare For The Coming Gold Crunch Oil Trades Near Three-Week Low as ECB Cuts Europe Growth Outlook More US Service Jobs Heading Offshore The World’s Economy Is In Peril, The Government Knows It

G.G. flagged this: Why Are People Hoarding Coins? Reader Steve L. sent: Cost to Make Penny and Nickel Rises, Annual Loss Reaches $116.7 Million. When seigniorage goes negative, modern era governments almost always move to debase their coinage. The window of of opportunity to acquire nickels without sorting will be closing soon! Drought expands, concerns mount about wheat and rivers G.G. flagged this: Government borrows 46 cents of every dollar it spends. And meanwhile, we read: Federal Budget Deficit 24% Higher Over Same Time Period Last Year. How long can this go on? Protect yourself by diversifying out of Dollars …

H.L. suggested this at Zero Hedge: Charts Of The Day: Greek Unemployment Hits Escape Velocity Yishai sent: Oklahomans can Buy Gold and Silver Coins and Bars without Paying Sales Tax When The “PRICE” of Gold or Silver Means Nothing? [JWR Adds: FWIW, I can remember Howard J. Ruff foreseeing this situation. He described it in his Ruff House television show, back in the late 1970s.] Items from The Economatrix: Service Industries In US Unexpectedly Rose In November Worst Since WWII:  50% Unemployment:  Over Six Million Teens And Young Adults Are Out Of Work And Not In School Confiscation, Price Suppression …

Income tax will exceed 50% in California, Hawaii, and New York City R.B.S. sent: Why You Might Only Be Able to Get Part-Time Work in 2013 Kevin A. sent: Double Your Money Selling Old Pennies by the Pound 109-Million Private Sector Jobs Paying for 88-Million Government Jobs/Welfare Items from The Economatrix: The European Threat To The US Recovery The Fiscal Cliff Is A Mirage, But A Real Cliff Is Ahead Most Accurate Forecaster Sees Lethargic U.S. Expansion

The Coming Derivatives Panic That Will Destroy Global Financial Markets. [JWR Adds: I’ve been warning you about derivatives since 2006.] R.B.S. sent: Obama Slaps States That Don’t Comply With Obamacare Also from R.B.S.: More Signs of Silver Shortage Items from The Economatrix: Shopper “Fatigue” Hurt Retails Sales Last Week Home Prices Up 6.3% In October From Last Year. [JWR’s Comment: It is remarkable what hundreds of billions of Dollars created out of thin air and the fantasy land ZIRP can create, in the short term. ] “We Are In The Midst Of The Keynesian Depression” US Households Already Went Off …

Over at Guerillamerica: The American Redoubt: New Byzantium Some ominous news, from England: Tax hitmen to track your spending: Up to two million people are to have their credit files secretly checked under a crackdown on tax evasion to be unveiled by George Osborne to help raise another £10 billion. (Thanks to Greg C. for the link.) James K. sent this from McNewspaper: Invest in gold bullion or gold-mining companies? Yishai sent this news from the small island nation of Curacao: Police Baffled: $11.5M in Gold Bars Burgled in Bold Boat Heist Items from The Economatrix: Even Without U.S. Cliff, …