Category: Economics & Investing

The $5 Trillion Man: Debt Has Increased Under Obama by $5,027,761,476,484 eBay Announces New Changes for Coins Listed in Auction. The two changes, in essence, that follow up on their earlier banning of “replica” coins: 1.) Starting May 30th, Sheldon Scale numbers (1 to MS70) can only be mentioned if the coins are PCGS or NGC graded and encapsulated (“slabbed.”). 2.) Any coins valued at $2,500+ must be PCGS or NGC slabbed. (JWR’s comment: Gee, do the coin grading firms make a slab big enough to hold a one kilo gold coin? And what about a 10 kilo silver coin? …

After an unexpectedly long delay, here it comes: Stivers’ steel-coin bill gets hearing in House. (2012 may be your last chance to stack up your rolls of nickels with relative ease, at face value.) Reader “AmEx” sent this: Taxmageddon coming? Answer could cost Americans $500 billion The latest in the ever-growing world of derivatives: Could the Next Investment Craze Be Hedging Marriages? Kevin S. sent this: It’s Starting To Look Like This Notorious Book On The End Of Growth Was Right Several readers sent this: 16 Reasons To Move Away From California Items from The Economatrix: More US Cities Set …

G.G. flagged this “must read” piece: Taxes Prompt More Americans to Renounce Citizenship Also from G.G.:Gold bars now Italy’s fastest growing export: Italy’s exports rose last month, but only after they were boosted by a rush of gold ingots being shifted to Switzerland. Jim Willie: Golden Eye of Hurricane Tim Geithner Spills The Beans, U.S. Debt Crisis Looms   Globalization, Inflation & Taxes: 3 Key Factors That Will Destroy The Middle Class Items from The Economatrix: Zero Hedge reports: Central Banks Favour Gold as IMF Warns of “Collapse of Euro” and “Full Blown Panic in Financial Markets” Insiders Tell Jim …

Hello Mr. Rawles, First of all, thank you for all that you do.  Your books and your site are invaluable information to me.  They have helped me to get pretty-well prepared.    I have a question about debt.  Every survival type that I have listened to or read says “get out of debt”.  I am out of debt, but I am considering obtaining a small mortgage in order to be able to purchase a place that will be a better refuge location for me and my family.  (Unfortunately, it will have to be on the east side of the Mississippi …

“Not if, but when” for Spanish bailout, experts believe For Two Economists, the Buffett Rule Is Just a Start. These French commueconomists want to punish anyone who is successful. And speaking of French economists, here are some that are more croyable: Global systemic crisis – France 2012-2014: The big republican earthquake and its international impact Ken S. recommended this piece over at The Daily Reckoning: Global Derivatives: Like Two Drunks Leaning On Each Other At Zero Hedge: Chris Martenson: “The Trouble With Money”. (Thanks to Jim T. for the link.) And if those gloomy-doomy charts weren’t enough for you, then …

I just noticed that the silver to gold price ratio has bounced back up to 52-to-1. (It is wise to study these charts.) In my estimation, we have reached another good opportunity to ratio trade out of gold coins and into silver coins, especially for anyone that is over-invested in gold. Be sure to sell gold on a peak day, and buy silver on a dip day. Before this decade is out, I predict the Ag/Au ratio will be under 30-to-1. And by the time we pass our coins on to our great-grandchildren, the ratio may be as low as …

B.B. spotted this over at Zero Hedge: Sheila Bair’s Modest Proposal To Fix Everything: Hyperinflation John Mauldin on the Greek default: There Will Be Contagion Sue C. sent us this: Analysis: Investors run scared of Spain’s battered banks Also from Sue: Meet Allan Hill, the man who lives In Detroit’s abandoned Packard Auto Plant And from Diana V.: 43% Have Gone Through A Week Without Paying Cash Items from The Economatrix: Consumers Are Spending More, So Sales Are Up US Michigan Consumer Sentiment Decreased 75.7 In April Inflation Outpaces Earnings, Threatens Spending

U.S. Mint production of Nickels (five cent pieces) is up 78%. (Also see this related article: US Mint Circulating Coin Production Shifts to Lower Denominations.) JWR’s Comment: That large an increase can’t be attributable just to collector demand. Obviously, a small but forward-thinking portion of the citizenry is anticipating a debasement, and these wise folks are stockpiling nickels. Methinks the next 18 months could turn out to be a bit of 1963 and 1964 deja vu. Mark my words: Congress will act. Debasement is coming. Get your nickels before the composition change. (That is, before you have to hand sort …

G.G. mentioned this “must read” piece: How The Country Dies Reader Debbie M. suggested the new PBS television series called America Revealed. Debbie notes that this series unintentionally underscores the complexity and fragility of our long chains of supply and our dependence on grid power. The first episode, “Food Nation“, is now available for free streaming viewing. Kevin S. suggested this: The Unemployment Farce Swiss Bank Accounts: Why Mitt Romney (or an Average Joe) Might Want One Items from The Economatrix: Unemployment Falls Fast In U.S. If Men Get College Degree Mid-Incomers Suffer In Polarized U.S. Job Market Economy Minimum …

Dan in Kentucky recommended this BBC news video segment: Greek town develops bartering system without euro. [JWR Adds a word of warning: To avoid charges of fraud or counterfeiting, never use the term “Dollar” or use a Dollar Sign ($) when setting up an alternative currency, or make any implication that the currency units in any way reflects or is tied to the Dollar as a currency unit. (The creators of the Liberty Dollar learned this the hard way.) Instead, the barter currency unit should be denominated in hours of labor, or 1/10th Troy ounces of silver, with no mention …

In case you missed this: MIT Predicts Half of Humanity to Be Culled in Post-Industrial Crash Debasement ahead! Treasury to Cut Costs by Remaking Coins, Replacing Paper. Have you got your nickels stacked up? (A hat tip to Sue W. in Idaho, the first of several readers to send the link.) Items from The Economatrix: The Dollars Demise:  Has It Arrived At This? A Wicked Financial Storm Descends On America Dueling Economic Banjos Offer No Deliverance US Expects Drivers to Pay 24 Cents More for Gallon of Gas this Summer

The most common reason given for not having preparations in place is lack of financial resources.  Considering the recent economic downturn combined with the large amount on consumer debt held by the average American household prior to the economic downturn that is not a surprising response.  For the past several decades Americans have burdened themselves with more and more debt.  We have fallen prey to the “buy now, pay later” mentality.  Each and every day we are inundated with marketing messages designed to make us feel like less of a person if we aren’t living in the right neighborhood, driving …

Those derivatives again: JPMorgan’s massive CDS index position Ambrose Evans-Pritchard: Gold crash on Fed tightening and euro salvation looks premature. (Thanks to J.B.G. for the link) Penny Wise, or 2.4 Cents Foolish? (Thanks to Michael W. for the link.) Northwest Territorial Mint (one of our advertisers) has announced very unusual special pricing on their own minted silver rounds and bars: Just 65 cents per ounce over spot. (That is about 1/2 of their normal markup.) This includes their Northwest Territorial Mint brand, the Pan American Silver Corp. (silver hammer), or the Stagecoach pre-scored divisible silve rounds and bars. This sale …

Steven M. sent this: Soaring battery prices “devastating” U.S. lead producers. The Coming China Economic Super Crisis. (Thanks to J.McC. for the link.) The suffocation of unsustainable global debt – Total global debt is now over $190 trillion and more than three times global GDP. Contagion with European Union Toby Connor: Stocks are re-entering a parabolic “bubble” phase Frequent content contributor Diana V. mentioned this over at Zero Hedge: Artemis On Volatility At World’s End: Deflation, Hyperinflation And The Alchemy Of Risk Items from The Economatrix: Why High Inflation is Inevitable Employment Gains Slow, Jobless Rate Drops Bernanke Says Financial …