Category: Economics & Investing

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

Smith & Wesson Posts Huge Earnings G.G. flagged this: To Save Money, Americans Buy Expired Food at Auctions Also from G.G.: More older workers making up labor force More monetization is in the works: Jim Rogers and Marc Faber Agree, Bombs Away Items from The Economatrix: Lackluster Economy Shows Stronger Pulse US Job Cuts Hit 20-month Low, But Layoffs Heavy Overseas Are You Better Off?  40 Statistics That Will Absolutely Shock You! 84 Statistics Showing The Collapse Of The Middle Class Is Real

Jim W. recommended this “must watch” interview that mentions the coming derivatives implosion: Greg Mannarino – People Are Going to Suffer on a Biblical Scale Marc Faber – The Most Dangerous Trend Facing The World Today. (Thanks to H.L. for the link.) G.G. flagged this: Regulators close small bank in Minnesota for total of 41 US failures so far this year Items from The Economatrix: June Food Stamp Recipients Hit All-Time High As Three Times As Many Americans Enter Poverty Than Find Jobs 8 Reasons Why No One Should Ignore The Coming Economic Collapse Unemployment Benefits Claims Fall 12,000 Inflation …

Canadian housing bubble goes into full mania mode – Canadian debt-to-personal income ratio near 145% while US at peak of the housing bubble was at 125%. When Working Until 70 Isn’t Enough Rex spotted this: Richard Russell: The World Can Fix Its Debt Problem By Raising The Value Of Gold To $10,000 The swan song of stagflation – Gas prices up over 100 percent from 2005 and incomes are stagnant. Ignoring a $16 trillion debt headline and repackaging food to hide stagnant incomes. Items from The Economatrix: Catherine Austin Fitts:  They’re Going to Depopulate or Bankrupt the Rest of Us …

G.G. sent: Why is Putin Putting Away So Much Gold? Items from The Economatrix: 18 Indications That Europe Has Become A Black Hole Which Is Going To Suck The Life Out Of The Global Economy Lost Middle-Class Jobs Being Replaced With Burger Flipping, Retail Gigs Audit of NY Fed Reveals Technocrat’s Creation And Cover-up of Global Financial Crash Gold’s Coming Rise

Some of the Really Bad Things That Could Happen if You Do Not Prepare tor the Coming Economic Collapse. (Thanks to Lee M. for the link.) Reader H.L. suggested this piece over at Zero Hedge: In Greece, It’s The Police Vs The Riot Police Mark I. sent: The 29 Ugliest Charts In The World The printing press is running hot, but where is inflation and how will it affect gold? Items from The Economatrix: Bernanke Says Fed Ready to Act But Short on Specifics “The Economy Stole My Retirement” Oil Has Peaked But No Relief at Pump Likely Soon

Peter Schiff: The real fiscal cliff. Bloomberg reports from Japan: The End of a 1,400-Year-Old Business. (Thanks to R.N. and G.G. for the link.) B.B. sent: $16,015,769,788,215.80 – $5.4 trillion added under Obama. JWR’s Comment: Don’t just blame Obama. It is Congress that holds the purse strings! Also from B.B.: Supermarkets being looted in Spain Items from The Economatrix: S&P 500 Trims Loss Amid Speculation Europe to Take Steps Manufacturing in US Shrank in August for Third Month Investors Assets to be Stolen in the Coming Collapse China Launching Gold-backed Worldwide Currency

Over at Zero Hedge: Chart of the Day: 803 Years of Global Inflation A good illustrated presentation on the economy, in light of Peak Oil: What the Economic Crisis Really Means – and what we can do about it James K. was the first of several readers to send this: Fears Rising, Spaniards Pull Out Their Cash and Get Out of Spain Moody’s Changes Euro Zone Rating Outlook to ‘Negative’ Items from The Economatrix: Everything You Need To Know About The September 12 German Court Decision That Could Rock The Entire World Economic Shock:  Global Food Prices Jump 10% The …

Federal Reserve has already started QE3, says investor Jim Rogers H.L. sent: Higher CAFE Standards: “There’s No Such Thing as a Free Lunch” A surprisingly good article, considering that it is coming from McNewspaper: Vanguard’s Jack Bogle: Financial ‘train wreck’ looms Steve F. recommended: Why Billionaire Frank Giustra Is Making A Massive Bet On Inflation Items from The Economatrix: Gasoline Rising to Holiday High as Storm Surge Presses Obama Consumer Confidence in U.S. Declines Most Since October The Three Frontrunners for Fed Chairman in Romney Administration (Hint:  It’s not Ben)