Category: Economics & Investing

James Wesley: I read with interest your article on saving nickels. My question to you is why are nickels better than quarters?  Is it not easier to store a larger sum of funds in the same physical space with quarters than nickels?  If they do devalue the [printed] US Dollar by a factor of 10, then a nickel will [effectively] be worth 50 cents but a quarter will be worth $2.50.    Regards, – Richard F. JWR Replies: As a hedge against a zero (or two) being dropped from the paper Dollar, nickels (the U.S. five cent piece) and clad quarters …

Jim W. suggested this: The Next Panic: Europe’s crisis will be followed by a more devastating one, likely beginning in Japan. Andre sent us this: Concerted QE – The Beginning of Hyperinflation   G.G. suggested: Fed Wants Inflation Now, Will Clean Up ‘Mess’ Later: El-Erian More Americans Added to Food Stamps Than Find Jobs Readers recommended two interesting essays over at Zero Hedge: Bank Of America to Fire 16,000 by Year End and What Mitt Romney Also Said: A Glimpse Of The Endgame? Items from The Economatrix: Household Worth in US Fell in 2Q as Stocks Dropped Dollar Index Headed …

By way of Tam at the View From The Porch blog comes this account of multiple mass inflations in Argentina: “¡Qué Quilombo!” Here is a key quote: “What seems peculiar about Argentina’s case is the government’s Herculean effort to ignore the immutable laws of economics in their pursuit of grand larceny. The country has seen five currencies in just the past century, averaging a collapse every twenty years or so. In 1970, the peso ley replaced the peso moneda nacional at a rate of 100 to 1. The peso ley was in turn replaced by the peso Argentino in 1983 …

Green Acres: The Case for Investing in Farmland Now Jim W. mentioned some commentary on empty retail store parking lots, over at The Burning Platform: Are You Seeing What I’m Seeing? QE3’s looming flaw: Big banks’ mortgage operations Marc Faber Warning: Store Your Gold Overseas Items from The Economatrix: Fed’s “QE-Infinity” Will Push Gold to $2,400 Deposit Flight From Europe Banks Eroding Common Currency 10 Shocking Quotes About What QE3 is Going to Do to America Gerald Celente:  Criminal Banksters Launching New World War

Jim W. sent: CITI: When Gold Hits $1790, Silver Will Go Bonkers G.G. flagged this: Tungsten-Filled 10 Oz Gold Bar Found In The Middle Of Manhattan’s Jewelry District Glenn Beck Uses Pies as an Illustration When Discussing Inflation and Tangible Hard Assets The latest from the LEAP think tank in France: GEAB N°67 is available! Global systemic crisis/October 2012 -The global economy sucked into a black hole and world geopolitics heated to white-hot: The seven key factors of an unprecedented double shock Items from The Economatrix: Jeff Berwick-0% Interest Rates Until The System Dies How QE3 Will Make The Wealthy …

G.G. flagged this headline: 8,786,049: Yet Another Record for Americans Collecting Disability Also from G.G.: Moody’s: More California cities at risk of bankruptcy–Credit agency sees greater chance of municipal bankruptcies, bond defaults in California Paypal suspends domestic transactions in Argentina From reader B.B.: For Every $1 Added to the Economy, Obama Added More Than $3 in Debt Peter S. sent: FedEx says economy is stalling, cuts outlook Bond Wars: Chinese Advisor Calls For Japanese Bond Dump Items from The Economatrix: Ron Paul:  “Country Should Panic Over Fed’s Decision” QE3:  Helicopter Ben Bernanke Unleashes An All-out Attack On The US Dollar

100 million credit card accounts are gone since 2008 – Credit card balances decline by 22 percent since their 2008 peak. R.C. sent this: Nevada man dies with $200 in bank, $7M in gold hidden inside home. I thought Nevada was the Silver State… But of course $7 million in silver would be too bulky. R.B.S. pointed me to a fairly well-balanced British documentary: The Great Euro Crash – 2012. (If you jump 25 minutes forward, you’ll see described the sneaky role that derivatives played in this debacle.) Items from The Economatrix: America Is Facing A Lost Generation:  Jim Rogers …

Does anyone really believe this Pollyanna pie-in-the-sky nonsense now coming from the mainstream media? With QE3, We All Win — Poor and Rich Alike. What balderdash! Let’s face facts, folks: The Federal Reserve has backed itself into a corner. They can’t do anything that will trigger higher interest rates. So the only arrow left in their quiver is monetization (“quantitative easing” is the gentler, sugar-coated name.) Their brilliant plan is to re-inflate the housing bubble by buying up $40 billion per month, indefinitely, in mortgage derivatives using make-believe money. This pure fiat “money” is coming from their Sunshine Pump. I …

Unlimited monetization: Get Ready For An Epic Fiat Currency Avalanche First corn and now wheat: Weather Woes Sow Worry on Wheat. Stock up your larder before prices gallop! (Thanks to U.E. for the link.) John Embry Expects a Silver Price Explosion Driven by Physical Shortage Items from The Economatrix: German Court’s Backing Bailout Fund to Test EU Resolve on Crisis Fed Seen Starting QE3 While Extending Rate Pledge to 2015 Gary North:  Gold Bugs and Anti-Gold Bugs, It’s a Fight for Civilization

The inevitable credit downgrades begin: Egan-Jones downgrades U.S. rating on QE3 move Greg C. sent: More Americans opting out of banking system Reader K.P. sent: Understand the Rules Before You Transport Precious Metals Overseas Hyperinflation Is Virtually Assured – John Williams. (Thanks to H.L. for the link.) Items from The Economatrix: Five Years Since The Great Financial Crisis:  “No Growth, No Deleveraging” Gerald Celente – Gold, Silver, & A Major October Surprise The Euro Crisis Is Not Over And Is About To Get Interesting

Here comes more monetization: Fed Undertakes QE3 With $40 Billion Monthly MBS Purchases. JWR’s Comment: Oh great, Mortgage Backed Securities derivatives. Your tax dollars at work, buying up dodgy debt. Reader G.A.H. was the first of several readers to mention an interesting parallel to the opening chapter of my first novel, Patriots: Germany Says ‘Great Uncertainty’ About US Debt. Here is the proverbial “life imitates art” quote: “German Finance Minister Wolfgang Schaeuble questioned on Tuesday how the United States could deal with its high levels of government debt after November’s presidential election. In private, German officials often express concern about …

Reader and loyal content contributor F.J. recommended this: When, Not If, Inflation Returns K.P. liked this article: Real Wealth, Gold, and Why Government May Want You on Food Stamps Peter Schiff: The Only Way To Fix The Economy Is To Let It Fail Items from The Economatrix: The Canadian Housing Bubble Nears Implosion Jobs Data Show US Factories Bearing Brunt of Slowdown S&P 500 Rallies to Highest Since 2008 on Stimulus Bets Miss In U.S. Payrolls Spurs Talk of New Fed Stimulus

The Secret Panic of European Banks G.G. flagged this: Government officially tops $1 trillion in deficits Reader H.L. sent: As the Euro Tumbles, Spaniards Look to Gold Pierre M. was the first of several readers to mention this: Pig farmers quit as feed prices soar Items from The Economatrix: Job Growth Cools, Posing Challenge for Obama, Fed Why a Drop in the Unemployment Rate is Tragic Homebuilders’ New Problem:  Too Few Workers