Category: Economics & Investing

QE is Coming! Bleak jobs outlook raises heat on Fed: Chief of San Francisco reserve sees benefit of open-ended QE. Inevitably, monetization leads to inflation. Ken W. sent: Analysis: Shoppers may be spared worst of corn price surge. Ken’s Comment: “I ain’t believing it!!!…” Over at Dr. Housing Bubble they spell out the impact of $1 trillion in student debt: Mortgaging your way to a college education – the burden of student debt and the impact on the starter home market. LIBOR suit threat from small banks Items from The Economatrix: Ron Paul Interview With Gold Seek Radio What’s So …

Steve W. mentioned a Numismaster article about nickels. Although it is presently illegal, it almost inevitable that following a debasement that the law willl change, and there will be large scale nickel melting. Do I detect a hint of panic? IMF Calls on Euro Authorities to Stand Behind Deposit Insurance. (Thanks to Rhonda T. for the link.) Quantitative Easing: QE3 Is Coming and Here’s How To Prepare 12 Signs Showing The Next Recession In The U.S. Is Underway Items from The Economatrix: This Is The Government:  Your Legal Right to Redeem Your Money Market Account Has Been Denied Why the …

Rhonda T. suggested a New York Times slideshow on Stockton, California’s bankruptcy. Steven M. sent: Subterranean Swiss Hotel Sells for Shocking Price. “In what may be the deal of the century, a lucky buyer paid just $1,020 at auction for a luxury underground hotel in Switzerland worth an estimated $3.8 million. However, keep in mind, it IS a former artillery bunker.” G.G. sent this: Regulators close five small banks in Georgia, Florida, Kansas, Illinois for total of 38 US failures in 2012   Items from The Economatrix: One-On-One With Craig Roberts #2:  Libor Fraud Now Part Of The System S&P …

Reader M.E.W. suggested: The Federal Reserve Is Not Going To Save Us From The Great Depression That Is Coming Default? U.S. Post Office Might Miss Retirees’ Payment. (Thanks to SurvivalBlog’s G.G. for the link.) Items from The Economatrix: Psychopaths Caused The Financial Crisis…And They Will Do It Again And Again Unless They Are Removed From Power Beginning Sovereign Debt Crisis Endgame, Attack of the Zombie Banks and the New Religion of Europe These 12 Hellholes are Examples of What the Rest of America Will Look Like Soon Bad Economic Signs 2012s

The “well funded” Social Security myth: $20 trillion timebomb. (Thanks to G.G. for the link.) Reader AmEx sent an article by Paul Farrell: How Bernanke will cause the next crash before 2014 Over at Alt-Market: Bad Economic Signs 2012 Ol’ Remus of The Woodpile Report alerted me to an article wherein Karl Denninger summarizes the enormity of the LIBOR scandal: So I Need To “Be An Adult” About Fraud Eh? Here is a key quote: “There are hundreds of trillions of dollars of interest-rate derivatives linked to LIBOR, directly and indirectly. A 1% move would be something like $3 trillion …

Economist Duncan: Next Depression May Be So Severe Civilization May Not Survive Don’t miss this important news spotted by G.G.: Here Comes the Catch in Home Equity Loans The twin lost decades in housing and stocks – baby boomers selling homes to a less affluent young American population. The impact of baby boomers on the housing market. Reader Sue C. sent this: IMF cuts global growth forecast as emerging economies slow Items from The Economatrix: Why Gas Prices Are Heading Back Up IMF Cuts Global Growth Forecasts As Emerging Economies Slow America Heading Towards A Collapse Worse Than 2008 AND …

B.B. suggested: Don’t fear the fiscal cliff — fear the welfare cliff Sue C. spotted this item: Political feuds, denial drove San Bernardino to bankruptcy SurvivalBlog’s G.G. suggested this by humorous economic commentator Richard Daughty (“The Mogambo Guru”): So Freaking Obvious (SFO) Items from The Economatrix: When Bankers Get Nervous, Watch Out Retail Purchases In U.S. Unexpectedly Decrease 0.5% Oil Declines From Seven-Week High Amid Global Economic Concern Fewer US Companies are Planning to Hire

Those pesky derivatives: How Jamie Dimon hid the $6 billion loss The latest from Yohay at FOREX Crunch: US Gained Only 12,000 Jobs in May According to Bernanke’s Highlighted Indicator Steven M. sent this: It’s Not Just Free Cell Phones… The Government Is Handing Out Free Air Conditioners Too. JWR Adds: Oh, and to make it even worse, the LG Global Electronics brand air conditioning units they are giving away are made in China. (“Your tax dollars at work.”) Items from The Economatrix: Jim Willie:  Extreme Danger Signposts Gold 22% Rally to Record Seen by Eric Sprott:  Commodities Buffet Says …

Six charts that show the Welfare State run amok. (Thanks to SurvivalBlog’s Poet Laureate G.G. for the link.) Doug C. sent this: Is Bankruptcy Coming to a City Near You? The looming student loan bubble – Almost half of all student borrowers were not making payments. 1 out of 4 in debt repayment past due on student debt. G.G. sent this: Gold for Oil: Turkey has exchanged nearly 60 tons of gold for several million tons of Iranian crude oil, despite its promises to uphold Western sanctions on Iran’s energy sector Items from The Economatrix: Inflate Or Die Four Reasons …

Dominique de Kevelioc de Bailleul: Gold Prices: Brace For Bizarre QE3 Hail Mary and Hyperinflation Gold to Hit $2000 on Fed Easing: Merrill John Embry – Hang On Because The Chaos is Going to Accelerate Jim Rogers: Duck and Cover, Your Cash Is NOT Safe; Buy Physical Gold Where are the markets heading? The chartists are uncertain. (JWR’s Comment: It is difficult to predict manipulated markets. In the era of Quantitative Easing (monetization), ALL markets are manipulated to some extent.) Items from The Economatrix: We Are Near An Epic Collapse In Confidence Higher US Unemployment In A Year:  Pimco’s Bill …

G.G. flagged this: Bank’s idea for tackling the financial crisis: six bicycles. The article begins: “The Bank of England considered buying bicycles so that its officials could continue to move around in the event of a full-scale financial meltdown, the former City minister disclosed last night.” San Bernardino seeks bankruptcy protection: San Bernardino, facing the possibility of missing payroll, becomes California’s third city in weeks to authorize a bankruptcy filing. FHA bailout inches closer – FHA defaults surge 26 percent while upping mortgage insurance premiums to make loans more expensive. Foreclosure starts outnumber foreclosure sales 3 to 1. RBS sent …