Category: Economics & Investing

James Wesley: Can you provide any insight on the banking services and the Lakota [copper, silver and gold] coins from the Lakota Bank? Thanks, – Bryan E. JWR Replies: They are to be commended for their pluck, but their fees are high. More importantly, their arbitrary Cu/Ag/Au ratios (2/50/5,000) will certainly come back to bite them.  (Fixed ratios are a bad idea! The silver-to-gold ratio is constantly changing. I expect to see a 10-to-1 ratio by the middle of this Century. Anyone that locks themselves into a fixed bimetallic ratio is sowing the seeds of their own downfall. The Liberty …

And you thought the upcoming 39.8% Federal tax rate sounded bad… Did you see this cliff coming? Ranchers, farmers brace for ‘death tax’ impact. The exemption drops from $3.5 million $1 million, and the rate jumps to a confiscatory 55%. B.B. sent: Peter Schiff: Dollar Collapse Before Obama’s Out I missed this when it aired last June: CNBC pundits admit we’re all slaves to the central bankers. Items from The Economatrix: Ron Paul On Secession No Surprise!  Jobless Claims Up 78,000 Week After Election; Pennsylvania, Ohio Worst Hit John Galta:  Gold Will Move $500 Per Ounce Per Major City Europe’s …

2.5 million jobless adults living with their parents G.G. sent: U.S. Postal Service on a ‘Tightrope’ Lost $15.9 Billion Gary Shilling: This Is Not just A Temporary, Bear-Recession Dip. But A “Deeper Depression-Style Slow-Growth Likely Till The Election Of 2020″ Items from The Economatrix: Wholesale Prices, Retail Sales Fall In October US Bank Run Imminent As FDIC Expanded Deposit Insurance Ends December 31st. (The 100% coverage expiring, it goes back to the limit.) Financial Markets Second Shoe About To Drop? How Shadow Banks Rule The Worlds

Mac Slavo: There Is A Financial Disaster Coming; Are You Ready For An Absolute Credit Freeze? Credit And Derivatives Are Decreasing At An Alarming Rate!! Market Crash Inevitable? FHA Nears Need for Taxpayer Funds (More Bailouts!) Items from The Economatrix: Food Stamp Aid To Be Reduced In Ohio Economy Stinks For Many, But Crushing For Millenials Economist:  EU Recession Worsening What Is Money When The System Collapses?

Jim T. spotted this over at Zero Hedge: Q2 Total Gross Notional Derivatives Outstanding: $639 Trillion. (Don’t miss reading the comments.) O.T. sent: Regulators Destroying Your Home Appliances Peter Schiff: Thanks To Federal Reserve Policies Like QE3; We’re All Scr%#ed Items from The Economatrix: Gold And Silver Prices Set To Explode Obama Win Means Big Inflation Is Coming, Investor Refuge In Gold And Silver US To Become Largest Oil Producer, Energy Independent

Marc Faber: Market To Drop 20% Now, 50% Later, Complete Global Societal Collapse In Five Years “NO BID” Threat Looming: When The Computers Stop Trading…Any Tradable Funds May Drop To Zero! [JWR Adds: An old Austrian School of Economics saying is: “There are buyers and sellers in every market”–but in a market where nearly all the trading is program trading, this may no longer hold true.] Moody’s says would maintain US rating, outlook in event of fiscal cliff, await further cues Items from The Economatrix: What Is The Fiscal Cliff? CBO:  “Fiscal Cliff” Could Trigger Recession Ron Paul:  “We’re So …

G.G. sent this: Record 70.4 Million Enrolled in Medicaid in 2011: 1 Out of Every 5 Americans Hurricane Sandy and the Disaster-Preparedness Economy The Tragedy Of The Euro! What About Germany? Items from The Economatrix: Record Overseas Sales Boost US Growth Why US May Be Headed For Another Recession The Mass Firings Begin Expect A Recession In 2013 Without A Quick Fix To The Fiscal Cliff The Lull Before The Social Storm $5 Trillion Price Tag For Public Pensions

Tossing a bone: Boehner Would Accept ‘New Revenue’ Under ’Right Conditions’. (But soon after, Senate Minority Leader Mitch McConnell (Republican of Kentucky) put his foot down adamantly: no tax hikes. Some news from Greece: Sharp rise in overdue debts to the State Jim Rogers: Money Printing Will Run Amok. Obama 2.0 & the Fiscal Cliff: Implications for America, the Markets, the Dollar, and Gold Items from The Economatrix: Wage Costs Rise More Slowly As US Employers Hold The Line US Home Sales Dip 1.7% On Tight Inventory Can Asia Demand Help Gold Break $1,800 Barrier? Doug Casey:  There’s Going To …

New coinage composition: Cents action or delay? (Note that December 13, 2012 is the deadline for the report on the new minting recommendations.) Schrader: Farmland Values Remain Strong Across Spectrum of Quality and Location Argentines Prepare for Huge Anti-Government March Some interesting reading on legal tender paper currencies versus the Constitution: The Dollar, Revisited. Items from The Economatrix: German Calls For Gold Repatriation Intensify As Fed Refuses To Allow Inspection Hathaway:  Gold Set Up To Super-Surge To New All-Time Highs Investors Fear More Than Just A “Fiscal Cliff” McDonald’s Sales Drops For First Time Since 2003

Yishai spotted this: Congratulations, Democrats: More Than 45 Companies Go Galt, Announce Mass Layoffs Peter Schiff: Another Stock Market Crash Looming: Get Out of The Stock Market NOW!! Peter Schiff: Much Bigger Collapse Is Coming, Worse Than Europe More charming news: Obama May Levy Carbon Tax to Cut U.S. Deficit, HSBC Says Why gun stocks soared after Obama’s win–In a repeat of 2008, traders anticipated an increase in firearm sales after the election. Items from The Economatrix: “Massive” Surge in Retail Purchases of Silver and Gold Gold Set for Longest Winning Run in Two Months on Obama Win Upbeat Consumers …

Simon Black concludes that the 2012 Election doesn’t matter: I apologize for what you’re about to read. (Thanks to Steven F. for the link.) A nation in the pangs of deleveraging – The long-term trend of a declining dollar and a collapsing middle class.   Items from The Economatrix: Wall Street Drops For Second Day On Fiscal Worries US “Fiscal Cliff” Biggest Risk For Canada, G20 Admit Economic Ignorance Job Openings In US Decreased By 100,000 In September Employers Post Fewest Job Ads In Five Months Compared To Other Countries, US Job Market Looks Pretty Good

Reader R.B.S. sent some more proof that if you cannot touch it, then you probably don’t truly own it: Stock certificates feared damaged by Sandy (Doom and Doomer?) Marc Faber & Jim Rogers: Obama Is A Disaster, The Stock Market Should Have Fallen 50%, And You Should Buy Yourself A Machine Gun. I Need To Buy A Tank… It’s Going To Be More Inflation, More Money Printing, More Debt, More Spending… Federal Reserve Report: 100% Chance of Recession B.B. sent: When Infinite Inflation Isn’t Enough James C. suggested this: UK facing middle-class brain drain as professionals seek better lives abroad …

Turmoil in Greece escalates as unions strike. JWR Adds: The strike by doctors won’t mean any loss of income to them since most of them have been paid in several months, anyway. Toilet Paper as currency, post Sandy. Items from The Economatrix: Mining, Ski Slopes and Condos: Buying Real Estate in the US with Silver in Mind Why Thanksgiving Will Cost More This Year What The Jobs Report Says About Housing Why Economic Shock From Fiscal Cliff Will Last Over A Decade