Category: Economics & Investing

Some elements in this piece by Monty Pelerin will sound familiar to SurvivalBlog readers: The Role of The Government in The Economic Crisis Zero effective policy and stalling QE3 – Why QE3 will have little financial impact if implemented. Deposits at US commercial banks quickly approaches $9 trillion. G.G. sent this: Household income is below recession levels, report says. Also from G.G.: Unilever sees ‘return to poverty’ in Europe Items from The Economatrix: Why We Are on the Brink of the Greatest Depression of all Time The Truth About Gasoline Price Volatility US Capital Goods Orders Decline Most Since November …

James, I’d like to respond to our friend who asked if refinancing from 5.2% down to 3.88% is a good idea. To answer that, consider what we just did. We refinanced our house from 4.5% down to 3.75% and borrowed a further $40,000, from equity. The result is that we still pay $100 less each month in mortgage payments. While we have more debt, now we also have more equity in the house in the form of $33,000 worth of solar panels and battery backup that we had installed. We also squared away most of our remaining important preparations and …

Analysts fear euro-zone capital flight might snowball. (Thanks to Jon M. for the link.) Why a Gold Crisis Looms? G.O. recommended this: Fed Up With the Euro? Start Your Own K.W. sent a link to some dubious predictions: Food prices continue upward. Given the recent jump in corn and other grain prices, I have serious doubts that we will see just a “2.3% to 3.5%” increase. Several good articles from ETF Daily: Our Economy Has Been Collapsing, It Continues To Collapse, and The Collapse Is Going To Accelerate Dramatically   Eric Sprott Cautions Investors To Fear The Financial System   …

Jim, Just a pondering I hoped you might be able to give me some insight on, I’m either to young or didn’t know it because we were too poor to notice, but I’ve never experienced a significant economic decline in my life.  My wife and I are both doctors and have borrowed heavily to set ourselves in a great place.  Right now we have no difficulty making the bill payments but should the banking/finance system collapse, will we still have to pay the bills; how do we pay the bills; and/or is there any hedge to anticipate how we’ll make …

Reader Rex S. suggested: Why You Always Want Physical Everything Sue C. sent: Republicans tease with gold standard, but idea seen full of bugs. [JWR’s Comment: The biggest “bug”–and the statists’ real objection to gold–is that a gold standard wouldn’t allow the government to spend beyond its means and create money out of thin air. G.G. flagged this: When a 401(k) Is Locked in the Freezer One way of looking at the current monetary paradigm: The Rot Runs Deep 1: The Federal Reserve Is a Parasitic Wealth Transfer Machine Items from The Economatrix: Nearly 1 In 5 Americans Have No …

Reader Lee M. sent this: Europe readies the printing press: Europe’s central bank appears to have created a path to implementing Fed-like easy-money policies. If so, it is a huge game-changer for Europe, and the world, as inflation fears come to the fore. Rex in Tennessee mentioned a piece by John Barnett over at The American Thinker: ‘Mountain Pride’ versus the Welfare State How does a Gawker spell hypocrite? Gawker and Bain and the Caymans. Report: Middle class will take years to reverse losses of last decade Items from The Economatrix: Top Investor Warns of “Financial Armageddon” as Soros Dumps …

Tim J. sent a link to an excellent essay by Wayne Allyn Root with some sobering comparisons to 1929: Why we are on the brink of the greatest Depression of all time. From G.G.: Nearly half of Fannie Mae REO unable to reach market GOP boosts gold ahead of convention B.B. sent: Big Income Losses for Those Near Retirement Items from The Economatrix: S&P 500:  The War For 1,400 Has Begun 8 Economic Threats That We Were Not Even Talking About At The Beginning Of Summer Eric Sprott:  The Financial System’s Death Knell? Gerald Celente:  The Fate Of The World, …

Be sure to watch this lecture: Marc Faber On Keynesian Folly, The ‘Missing’ Inflation, And Bubble-Blowing. (Thanks to B.B. for the link.) Obama’s Budget to Add $4.4 Trillion to Debt in Next Four Years–On track to $20 trillion in debt in 2016. [JWR’s Comment: Keep in mind that those figures are predicated upon interest rates staying artificially low. Someday, our foreign creditors will demand a higher rate of return on U.S .Treasury paper. And when that happens, we’ll see a repeat of the current Greek Tragedy, here in the U.S. of A. That will be the death knell of the …

More monetization ahead! Federal Reserve leaning toward more stimulus Greece ready to start selling islands to pay down debts. (Thanks to B.B. for the link.)   Items from The Economatrix: Startling Evidence That Central Banks and Wall Street Insiders are Rapidly Preparing for Something Big Jim Rogers:  It’s Going To Get Really “Bad After The Elections”

The Commodities Survival Kit Guide: Gold, Silver, Timber, Farmland, Stamps, & Antique Guns Why Investors Are Hoarding Silver U.S. 2012 budget deficit $1.1 trillion: CBO (Thanks to B.B. for the link.) K.P. sent this: Heard the rumour China is buying 6,000 tonnes of gold? It may not be as crazy as it sounds Items from The Economatrix: Shhh…It’s Even Worse Than The Great Depression Germany May Be The Country That Brings The Euro Crashing Down