Category: Economics & Investing

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 …

Eric P. sent this from Der Spiegel: How Monetary Policy Threatens Savings A key quote: “Anyone who can afford it is seeking protection from inflation and fleeing to material assets.” G.G. flagged this: Nine in ten Scots ‘living off state’s patronage’ Also from G.G.: The dollar’s days as reserve currency are numbered Decline, Decay, Denial, Delusion, And Despair (Thanks to R.B.S. for the link.) Items from The Economatrix: The Largest Economy In The World Is Imploding Right Before Our Eyes The Inflation Rate Is A Lie Too People Are Flipping Out:  California Is On The Brink Of Collapse And Panic …

Trivest, a private equity firm headquartered in Florida, has wisely acquired Wise Foods, a maker of long-term storage foods. I found this over at Gold-Eagle: Unraveling Why A Fed President Just Suggested Doubling QE3 GammaRei sent: The Five Most Surreal Financial Apocalypses from History (Warning: Foul language.) Rich businessmen pulling out of France as tax-hit looms. (A hat tip to K.A.F. for the link.) Items from The Economatrix: The Real Unemployment Rate Faber Warns “Everything Will Collapse” Money Printing Trumps Fundamentals Stock Exodus Continues As Investors Yank $5.1 Billion Out

Hyperinflation Hits Iran Like Weapon Of Mass Destruction. The article begins: “‘Better buy now,’ advised the rice merchant in Tehran. The retired factory guard took him up on the advice, buying 900 pounds of the stuff to feed his extended family for the next 12 months.” G.G., SurvivalBlog’s Poet Laureate, flagged this: Global Food Prices Set To Soar–Again. [JWR’s Comment: We can expect to see more instability in Third World countries, just like the last time there was a big price shock in agricultural commodities.] Also from G.G.: Big Bank Derivative Bets Nearly Double In Six Years European Economic Depression …

Wall Street’s Grand Old Man, Richard Russell declares: The Only Way Out Is to Devalue. (Thanks to G.G. for the link.) Reader H.L. sent word of some ill-advised State Level Cap and Trade. H.L. call it “…the final nail in the coffin of the once Golden State.” G.G. suggested this piece at Tyler Durden’s oft-quoted Zero Hedge blog: Do the Swiss Know Something the Rest of Us Don’t? Also from G.G.: Greece ‘to run out of money’ Items from The Economatrix: California Cities In Fiscal Trouble “Conga Line” Warnings That A Massive Stock Market Crash Is Imminent Iran In Economic …

Those pesky derivatives: Task force slaps MBS-related charges against more banks The Other B.B. suggested this interview: Kyle Bass On The Federal Budget: “I Don’t Know How To Fix This”. Not surprisingly, Bass recommends getting out of dollars and into productive tangible assets. Real Homes of Genius – Silver Lake back in action with 4 garage duplex. Raging gas prices and luring in the next round of dreamers. At Forbes: Managing The Risks Of A Globalized Supply Chain Items from The Economatrix: Last Housing Crash Is Not Even Over But Bernanke As Set The Stage For The Next One Bill …

Why Ben Bernanke Is Setting The Stage For Another Housing Crash   How QE3 and Higher Inflation Are Part of The Fed’s Master Plan 15 minutes of fun: CNBC: Jim Rogers vs. Marc Faber Items from The Economatrix: Gold Hits Record High In Euros And It’s Setting Up For Another Rally Top CEOs:  Fiscal Cliff Is Hurting Job Growth Fiscal Cliff Could Cost US Households An Extra US $3,446 In Taxes Bernanke Seeks Gains For Stocks In Push For Jobs Gold Fields Tells Miners To Pack And Go

Barter, anyone? For Spain’s Jobless, Time Equals Money. (Thanks to Kristina D. for the link.) Low Global Growth Is Worse Than Mega Sovereign Default: Slowdown Will Depress Corporate Earnings And Trigger Our Next Big Market Crash Rhonda T. sent: South African Economy Paralyzed As Miner Strike Spreads To Truck Drivers Items from The Economatrix: “You Better Look At Reality … And Understand What’s Coming Next 13 States Now Considering Gold And Silver As Money Why Your Money May Be At Risk After Bank Cyberattacks Water Prices Rise Sharply Across America; Double And Triple In Some Locales

Hyperinflation Has Arrived In Iran. Followed, not surprisingly, by riots in the streets. G.G. flagged this: Living Through a Currency Devaluation. JWR’s Comments: Norte Americanos are advised to learn from this preview of coming attractions. Zi sent: The Stock Market Is Heading For A Third Major Crash of The Century And Monetary Policy Is “USELESS” Under Current Bleak Conditions Reader Jim W. suggested this at Zero Hedge: The ECB – EUR22 Trillion Is Missing Items from The Economatrix: Hedge Funds Lagging:  Is “Enormous Unraveling” Near? Manufacturing Snaps Back:  Is It A Turning Point Or A False Positive? US Banks Hit …

Less than 900 days for hyperinflation in the US? A “Frightening Pattern” Indicate That We Are Heading To A Massive Economic Catastrophe Unlike Anything Ever Seen And Countdown Clock Is Quickly Approaching Zero Here it comes: Americans face $3,500 fiscal cliff tax hit Items from The Economatrix: Day of Rage in Greece as More Stringent Cuts Loom Eurozone Crisis:  Spain Inching Closer to a Meltdown Death Knells for the to Sharp Slowdown in Manufacturing Why Oil Prices are Likely to Slide Further

Dear James, I really enjoy your blog and try to read it every day. My husband and I live in New Jersey. We just sold our house in May and are renting for a year while we try to figure out where to move next. Unfortunately, our home lost a lot of equity so we only have $55,000 to use towards our next house. Do you believe it is better to pay cash for a house or is it wise to get a mortgage since interest rates are so low? Our original plan was to buy our next home with …

W.C.P. suggested this video: Why the U.S. Federal Budget CANNOT be Balanced. RBS sent another video link: America’s Book of Secrets – Fort Knox H.L. sent: Cronyism Is Destroying Spain’s Future Items from The Economatrix: Deleveraging from One Bubble to Another Bernanke is Now a Kamikaze Pilot Panic Cash Withdrawals in Spain Drain Banks; Greece-style Economic Implosion Now Imminent What Key Shipping Index Signals About the Economy