Category: Economics & Investing

Der Spiegel reports: Investors Prepare for Euro Collapse Welcome to the land of the poor and rich – Trading the middle class for economic extremes. Deep Fried Black Swan Lands as China Admits it Has a Food Inflation Problem, Releases Corn, Rice From Reserves. (Thanks to H.L. for the link.) Three Warning Signs Showing Why You Should Remain Leery of this Market   Why Alternative Energy Will Never Become Widespread in Our Lifetime Items from The Economatrix: Presenting The Ultimate “Muppet” Indicator The US Treasury Secretary’s $2.4 Trillion Secret Are You Better Off Than You Were Four Years Ago? Egan …

B.B. sent this: Where Borrowing $105 Million Will Cost $1 Billion: Poway Schools. A 40 year bond. What insanity! This typifies the institutionalized myopia of California. Is The Greek Calamity Economy Headed For Revolt? “‘Dire’ is no longer the right word to describe the situation in Greece. Unemployment hit 23.1% in May…” Heads I Win, Tails You Lose: Goldman Sachs: No CDO charges by SEC. Once again, bankers are told implicitly told that they can gamble recklessly with derivatives with no repercussions. Someday there will be a huge implosion… Deep Schumer for scrap metal thieves? Sen. Schumer aims to make …

El Jefe Jeff E. first of several readers to send this news: US Banks Told To Make Plans For Preventing Collapse G.G. flagged this: Study: Almost Half of Americans Die With Less Than $10,000 in Assets Also from G.G.: Slow path to progress for U.S. immigrants: 43% on welfare after 20 years From B.B.: New retirees receiving less in Social Security than they paid in, marking historic shift Items from The Economatrix: Financial Algorithmic Trading Could Gold Be Tripped Up By Coming Deflation? Gold Poised For Upside Breakout of Current Range

Peter S. was the first of several readers to send this item: Over 100 Million Now Receiving Federal Welfare. Peter’s comment: “If true, then this is worse than I previously thought and feared in the US.  It is going to be ugly when the U.S. Dollar collapses…” American Expatriate (“AmEx”) suggested this: Fed’s Fisher: Just Stop With the Easing Reader B.B. sent this: US Dollar already went off a fiscal cliff – what does a falling dollar mean to US families? Masking de-leveraging via debt markets. Coffematt forwarded this: Real recovery in home prices not expected until spring. JWR’s Comments: …

France’s new Socialist President François Hollande is calling for a 75% income tax! Indigestion for ‘les Riches’ in a Plan for Higher Taxes. If this is enacted, expect to see a wave of emigration. Items from The Economatrix: Has The Perfect Moment To Kill The Dollar Arrived? The US Economy Lost 1.2 Million Jobs In July Oil Drops From Two-Month High in New York as Demand Slides

Five Surprising Facts About Hyperinflation Why Europe Matters… And How Spain Could Wipe Out Your 401(k) Reader Pierre M. sent this: The 11 Graphs That Allegedly Prove That the West Is Doomed The Daily Bell asks: Fed Bankrupting Consumers While Enriching Wall Street as a Matter of Policy? Items from The Economatrix: Despite Jobs Report, Street Unsure Of Fed’s Next Move The Employment Rate In The US Is Lower Than It Was In The Last Recession The US Economy By The Numbers

H.L. suggested this essay by Peter Schiff: We Have A Phony Recovery That Has Sown The Seeds Of Its Own Destruction Also from H.L.: Chevron’s Largest California Refinery “Immediate-Extreme-Health-Hazard” Fire Emergency K.A.F. flagged this: Emails: Geithner, Treasury drove cutoff of non-union Delphi workers’ pensions Items from The Economatrix: 11 Signs That Time Is Quickly Running Out For The Global Financial System Collapse Of Financial System Will Come In August, Maybe September US Manufacturing Unexpectedly Shrinks For Second Month

Bob G. sent this: Economist Richard Duncan: Civilization May Not Survive ‘Death Spiral’ Illinois to Spend More on Pensions Than on Education. (Thanks to B.B. for the link.) Items from The Economatrix: Economic Data Underscores Weakening Activity Consumer Comfort In US Falls On Concern Over Growth Postal Service On The Verge Of Default Job Gains Topping Forecasts Ease US Slowdown Concerns Service Industries In US Expanded At A Faster Pace In July

Reader H.L. recommended this over at The Daily Crux: Top Manager Grantham: Get Ready for a Global Food Crisis The other side of persistently high unemployment – Underemployment rate shoots up to 15 percent but is actually more problematic because of the civilian employment-population ratio. G.G. flagged this: Cash-for-gold shops boom as Italians sell off their bling Items from The Economatrix: Get Used To The “New Norm” of 6-7% US Jobless Rate Peter Schiff:  Priced For Collapse IMF:  US Plunge From Fiscal Cliff Would Hit Global Economy Hard Oil Surges Most in a Month as US Adds Jobs, Services

Collapse Of Financial System Will Come In August, Maybe September: Market-Watchers.( Thanks to Jim W. for the link.) Reader H.L. suggested this piece by Gonzalo Lira: How A Country Rationally Exits The Eurozone What’s in your vault? Uncle Sam audits its stash of gold at the New York Fed. The gold audit is a first for the institution and includes drilling into several hundred ingots. It could put the conspiracy theories to rest. Items from The Economatrix: Is The Gold Rush Over? Jobs Outlook Poor, Improvement Unlikely 65 Signs That The Economic Collapse Is Already Happening

Greeks can no longer afford paying expensive bribes. (Thanks to Rhonda for the link.) Fred K. mentioned this ABC News report: U.S. Bridges, Roads Being Built by Chinese Firms H.L. spotted this: Deflation? Don’t Count On It… Also from H.L.: 100,000 Workers in Spain Will Not be Paid Because Regional Government of Catalona is Broke Items from The Economatrix: Confidence Drains Away Debt Crisis Live:  July 31, 2012 Investing In Silver:  States Support Move to Metals as USD Weakens

Over at The Burning Platform: Crash Dead Ahead. Knight Capital glitch triggers wild stock swings Why You Should Expect an Imminent Silver Price Explosion From SurvivalBlog’s G.G.: America’s 401(k) Nightmare? Items from The Economatrix:s Rising Home Prices Show Traction In Housing Recovery Office Building Sales Rebound Hits A Bump Why Is Future Silver Supply More at Risk than Gold?

RBS flagged this: 5% of Americans Spend 50% of Health Care Dollars Are Fiat Currencies Headed for Collapse? Items from The Economatrix: Shares Fall As Stimulus Hopes Fade Manufacturing In U.S. Probably Stagnated as Spending Cooled Fed to Signal More Easing But Stops Short of Big Steps