Category: Economics & Investing

A major theorem of cryptography is that anything that be done with a trusted authority can be done without1 a trusted authority.  This theorem can be applied to currencies, too. Anything that can be done by a central bank can be done without a central bank .  The central bank for the United States of America, as you probably already know, is the US Federal Reserve.  The stated dual mandate of the US Federal Reserve System is:   “The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the …

Real estate horror continues with ‘zombie foreclosures’ Peter Schiff: ‘The Dollar Is Not The King Of Anything, Except Maybe Depreciation Zero Hedge reports of the bigger, deeper crater that once was Greece: Greek Unemployment Soars To New Record, 56.6% Of 15-24 Year Olds Without Job Items from The Economatrix: Highest Ever One-Day Sales For American Silver Eagles? BofA Freezes Gun Manufacturer’s Account Cracking The 2013 Tax Code

After the Fall: What Do You Do When You Conclude America Is (Temporarily or Permanently) Kaput?(Thanks to Linda U. for the link.) Carney on coin gambit: ‘There is no backup plan’. [JWR’s Comment: This is beyond bizarre. It is now obvious that we are entering the fiscal Twilight Zone.] Items from The Economatrix: Inflation By Any Other Name-Central Banks Around The World Increase Balance Sheets From $2 Trillion In 2008 To $6 Trillion In 2013 This Will Cause Oceans Of Paper Money To Panic Into Gold Consumer Credit Rose In November On US Auto, Student Loans

Peter Schiff: Even if you raise taxes to 100%, we couldn’t pay it off. We’re going to default. Dr. Gary North details the latest legislative travesty in Illinois, the Land of Lincoln Obama: A Bill to Register Buyers of Gold and Silver Coins. Just as with guns, they have it down to a science: they register, they tax, and then they confiscate. Federal Reserve May Pause Quantitative Easing. JWR’s Comment: Yes, and your local crack head may try to kick his habit by going cold turkey. They’ll both have about the same chance of success. Hedge funds face suspicious activity …

H.L. sent: Silver Prices in the Event of a Comex Default Jim W. suggested this article about the underground economy: My Name is Cash A Graphic View of How Shale Gas Could Change the Future Obamacare Guarantees Higher Health Insurance Premiums — $3,000+ Higher Items from The Economatrix: It’s Not Too Early To Worry About The End Of Fed Easing Economy Adds 155,000 Jobs In December:  “It’s A Slow And Steady Recovery” Social Security: It’s Worse Than You Think

Tiny gold bars latest rage for jittery investors G.G. mentioned this at Zero Hedge: Here Comes The Student Loan Bailout Also from G.G.: Spain Drains Fund Backing Pensions WSJ: Who Pays More Tax in 2013? Items from The Economatrix: The Middle Class In America Is Being Wiped Out — Here Are 60 Facts To Prove It Max Keiser & Jim Sinclair & Bill Gross:  USD Will Collapse In 2013 Housing A Sweet Spot For US Economy As Recovery Expands After The Fiscal Cliff, Challenges To Economic Growth Remain

Tom Cloud: How to Sell Gold Without Reporting It. (Thanks to H.L. for the link.) The Political Implications of America’s Oil & Gas Boom – James Kwak Interview Euros discarded as impoverished Greeks resort to bartering Forget discouraged, 3 million workers hopelessly unemployed Items from The Economatrix: Fed Becoming Worried About Stimulus Side Effects Private Sector Job Gains Offer Hope for Labor Market 65 Percent Of Americans Believe That 2013 Will Be A Year Of Economic Difficulty Retirement No More: Median Net Worth At Lowest Since 1969 The Difficult Part Is Still Ahead…Many Wall Street Experts Expect The Bond Bubble …

75 Economic Numbers From 2012 That Are Almost Too Crazy To Believe Reader “Rock Farm” recommended a piece by Victor Davis Hanson: Very Scary Times Putin Saves French Actor From Tax Slavery With Russian Citizenship Items from The Economatrix: My Name Is Cash New Gold for a Scary New World Moody’s Says “Fiscal Cliff” Deal Doesn’t End Credit Downgrade Risk 2013 Predictions:  S&P 500 Plunges, Gold Soars “Panic Buying” In Gold, Just Four Days Into 2013, A New Gold Milestone Has Already Been Passed

News from Greece: Communities set up local currencies and exchange networks in attempt to beat the economic crisis Jim W. recommended: The Dow to Silver Ratio By way of Tyler at Zero Hedge: Why Did a Train Carrying Biofuel Cross the Border 24 Times and Never Unload? Items from The Economatrix: Swan Dive of 2013 Economy Billionaires Dumping Stocks, Economist Knows Why Three Landmines Hidden In The Fiscal Cliff “Fix” How The Budget Deal Will Push Up Unemployment

Steve B. suggested: Analysis: After “fiscal cliff” dive, more battles, new cliffs Peter Schiff: US Economy Living On Borrowed Time Jim W. suggested this from Sovereign Man: When Priced in Gold, the US economy is at Depression-Era Levels Items from The Economatrix: Peter Schiff:  Congress Sells America Down The River to Avoid the Fiscal Cliff Roubini:  The Longer-Term Picture is Bleaker and the Next Crisis Could be Just Two Months Away The Good, The Bad & The Ugly From The Fiscal Cliff Deal

Diana V.: suggested: Storing Nickels by David Hathaway Rick in New York recommended a 46-minute documentary: Overdose: The Next Financial Crisis Fiscal Cliff: The U.S. Debt Ceiling Is The Real Issue Still Ahead Venezuela’s Inflation Rate Hit 19.9% Items from The Economatrix: A Massive EMP Blast Could Collapse The Economy In A Single Moment Happy New Year Middle Class:  The Fiscal Cliff Is Going To Rip You To Shreds 16 Things About 2013 That Are Really Going To Stink

Michael Pento: It Would Be More Surprising If Gold Didn’t Go To $10,000. s(Thanks to B.B. for the link.) Anthony Wile: The Invisible Hand Strikes Back Items from The Economatrix: Economy Weighs On Shoppers In Final Holiday Weekend Dash To The Mall US Economy Is At Depression-Era Levels:  This Slow Motion Economic Collapse… Beyond the Obvious — Mountains Of Deficit And Debt.  It Is About Polarization In Washington And Dysfunctional Structure Of The Current US Economy  “Fiscal Cliff” Deal Reached Between White House, Lawmakers

B.B. recommended: In 2002, CBO predicted 2012 US debt would be 7.4% of GDP. In reality, it was almost 74% of GDP $1 Trillion Obamacare Tax Hike Hitting on Jan. 1st San Bernardino may have to pay pensions before police protection Items from The Economatrix: Ordinary Folks Losing Faith In Stocks Housing, Factory Data Point To Momentum In Economy