Category: Economics & Investing

When I last checked, spot platinum had plummeted to $1,569 per ounce, while gold was more resilient at $1,707. This disparity is attributable to the platinum price being driven by its industrial uses. (And the global industrial forecast presently looks grim.) But, as I’ve mentioned before: whenever you can buy platinum for less than the price of gold, it is a good time to diversify your holdings. (Geologically, platinum is 16 times more rare than gold, so in most years it sells for a 20% to 150% premium over gold. The times that platinum has sold for less than gold, …

Is A Debt Jubilee The Next Big Meme? The World Is Moving Closer To A Full-Blown Currency War Just Like The Great Depression of The 1930s. Repo Man Goes to Ghana to Tow Away Argentinean Navy’s Flagship Eric G. sent: 10 nations that control the world’s gold Unless We Act, High-Frequency Trading Will Crash The Stock Markets Items from The Economatrix: Existing U.S. Home Sales Decline As Supply Drops Weekly Jobless Claims Drop Proves To Be Short-Lived Morgan Stanley Posts Loss in Q3 on Debt Valuation Adjustment

Keith Weiner: ‘I Don’t Think The System Can Survive, We’re On The Road Now Where The System Collapses, Everybody Will Be Killed’ Matt H. recommended this 4-minute video (auf Deutsche, but with English subtitles): A Grim But Realistic Prognosis Of What Lies Ahead For The European Union. (Dictatorship ahead?) Items from The Economatrix: Not Just Gas!  Check Out The Drastic Price Increases On 21 Everyday Items GE, McDonald’s Give Wall Street A Black Eye On ’87 Crash Date Firm Dollar, Weak Euro Crimp US Industrials’ Sales “Fiscal Cliff” May Be Bigger Than You Think

Egon von Greyerz discusses the current economic situation and the possibility of a new Swiss-minted gold coin as a parallel currency. And here is a related essay by von Greterz, with a chart: Disregard current manipulation of precious metals.) Pierre M. sent: Survey: 40 Percent Of Americans Have $500 Or Less In Savings Milk Seen Surging 15% on Drought-Feed Costs Before Demand Slows. (Thanks to R.B.S. for the link.) Items from The Economatrix: Bet Against Debt Imagine Prices At The Food Store And Gas Pumps Doubling In Days; QE Has Been Devastating For American Households And Now Many Of The …

Kevin S. suggested this article: Concerned Roman Hoarded Gold to Protect Against Hyperinflation at the Outer Reaches of Roman Empire The Washington Times reports: Welfare spending jumps 32% in four years. (Our thanks to B.B. and P.D. who both sent the link.) P.D.’s comment: “As you’ve written before, when the EBT cards stop working, there will be blood.” Dallas Federal Reserve President Richard Fisher recently offered a stunning assessment about our policymaking central bankers down in Washington. They’re winging it. Items from The Economatrix: Why Are Gasoline Prices Suddenly Falling? Iran Renews Cyberattacks on US Banks Moody’s Downgrades World’s Oldest …

AmEx (American Expat) sent this: U.S. to Get Downgraded Amid Fiscal ‘Theater,’ Pimco Says Reader A.T. suggested this essay by Martin Armstrong: What Destroyed Rome was its Unfunded Government Employee Pensions The Daily Bell reports: Now Mexico Bans Cash. JWR’s Comment: Don’t mistake this new law as part of the so-called war on drugs or the war on terror. Rather, it is plainly a part of the war on privacy and individual liberty. Izzy Friedman: What Now For the Price of Silver?

Have you noticed that the spot price of platinum is now about $90 below the spot price of gold? This is a sign of major economic turmoil and is predictive of a very weak manufacturing sector in the year to come. This price inversion doesn’t happen very often, so when it does, take advantage of it, just as I did. I was recently able to pick up some 1/10th-ounce and 1/4-ounce slabbed U.S. Mint Liberty bullion platinum coins for just under the spot price of gold! But beware of fake Chinese platinum and gold coins that are now becoming commonplace! …

G.G. sent this: Study shows $1.2 trillion gap for public pensions Items from The Economatrix: Moment of Truth Approaching for Manufacturers Foreclosure Filings Drop to Five-Year Low in September Home Heating Oil Cost Forecast to Jump 19% This Winter Banks Still Raising Fees-And Hiding Them

Why doesn’t this give me a warm, fuzzy feeling? Drone demand could be big boost to economy Stagflation Warning: When You Look At What Happened In The First Half Of The 1970s, The Similarity Between Then And Now Is Frightening Reader B.B. sent a link to this at the oft-quoted Zero Hedge: China Central Bank Refuses To Join Global Print Fest, Warns About Inflation Risks Items from The Economatrix: Alert: Highly Sophisticated Large-scale Cyberheist Targets Customer Funds At Major US Banks Marc Faber:  Market Setting Up For “Serious Setback” The Real Fiscal Cliff Is Much Bigger Than You Think, Warns …

Panetta Sounds Alarm on Cyber-War Threat: “It is the kind of capability that can basically take down a power grid, take down a water system, take down a transportation system, take down a financial system.” Standard of living, meet falling US dollar – how a falling US dollar benefits banks at the expense of working Americans. Prosecutors seek criminal charges in London Whale fiasco. Charles Hugh Smith: About That “No Recession” Call… Items from The Economatrix: Roubini Foresees Spain’s Doomed Despite Bankia Nationalization The Horrific, Worst-case Scenario for Spain S&P Cuts Spain Crediting Rating To Near Junk Jack Welch:  I …

Reader P.D. sent: US Nears Fiscal Disaster: ‘Washington Doing Nothing’ Kurt sent this: No Currencies Will Survive What Lies Ahead, But That’s OK Mac Slavo: Warning Signs: FedEx to Slash Thousands of Jobs Citing “Weak Global Economic Conditions” Items from The Economatrix: Confidence Among Small US Businesses Cooled in September Price of Gold Could Reach $2,400/oz. By Next Summer Is Housing Recovering Like People Think It Is? Greece’s Debt Nightmare Just Got Worse

Peter Schiff: Riding Into the Sunset or a Brick Wall? Goldman Sachs President: We’re In A Unique Period of History Where ALL Major Economies Are In Deep Trouble “Legalized Plunder of the American People” – G. Edward Griffin Items from The Economatrix: Fed’s Fisher Says US “Drowning In Unemployment” High Cost Of Energy Leading Economy Into Recession Will The Chinese Remnibi Replace The US Dollar As The Primary Reserve Currency Of The World? Reality:  More People Requested Emergency Food Assistance Than Found Jobs

Greece Hits 25% Unemployment, Germany on Brink of Recession, France And Italy Could Face Another Credit Downgrade, Social Breakdown Is Taking Place Inside Europe… AmEx (American Expat) sent: IMF Sees ‘Alarmingly High’ Risk of Deeper Global Slump Reader Pat S. recommended: Radical Simplicity, or Life after the Great Disruption Those pesky derivatives again: Cynicism aside, why the NY AG’s MBS suit vs JPMorgan matters Items from The Economatrix: 16 Critical Economic Issues That Obama And Romney Avoided During The Debate India’s Stock Exchange “Closes” After State Bank “Flash-Crash” Food Is The New Oil And Land The New Gold Gasoline Prices …