Category: Economics & Investing

Basic Preparations for Urban Outskirts in Third World Countries, by Jorge Gato

The following observations are geared toward expats or even locals living in the Third World, although most would apply as well to residents of the First World. Here in México, there have been countless horror stories, albeit, most of them not life threatening and essentially not classifiable as DEFCON 1 situations. Both expats and locals have been the victims of countless assaults. An acquaintance on the street was recently told simply to hand over his money and music player. Another fellow, a philosopher, became inspired at midnight on a city street and only had his laptop to record his divine …


Economics and Investing:

G.G. flagged this one: FDIC closes bank in New Jersey, makes 17 US bank failures so far in 2012 Also from G.G.: 1 in 2 new graduates are jobless or underemployed Items from The Economatrix: Currency Wars:  Gambling With Other People’s Money China Buying Gold at Discount US Stocks Join Global Slump On Europe’s Political Woes Durable U.S. Recovery At Hand As Growth Shifts


Economics and Investing:

Daniel R. Amerman: Inflation & Hidden Gold Taxation: Three Historical Case Studies The Daily Bell reports: Spain Bans Cash Items from The Economatrix: How Iceland Recovered Without Bailing Out Banks Jobs Beat Foreclosures as Housing-Market Guide Falling Energy Prices:  Good For Jobs, Not So Good For Gasoline Fears Rise That Recovery May Falter In The Spring


Economics and Investing:

Reader Jay B. wrote to mention this: IMF doubles lending capacity. Jay’s comment: “Didn’t you hear the printing presses speed up? You didn’t? Well, I will give you a hint, and it sounded like a sonic boom.” Coin Dealers Squeezed By New Ordinances. JWR’s Comment: To expect a coin dealer to hold merchandise for 15 to 30 days in a volatile precious metals market is absurd. No doubt their bid prices will be decreased, to cover the additional risk. Doug Casey: Expect Extreme Volatility a the Titanic Forces of Inflation and Deflation Fight Each Other The big swindle and a …


Economics and 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? …


Economics and Investing:

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 …


Economics and Investing:

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 …


Letter Re: Mortgages–WTSHF, Inflation and Deflation

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 …


Economics and Investing:

“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 …


Economics and Investing:

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 …


Economics and Investing:

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


Economics and Investing:

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 …


Letter Re: Firearms and Ammo Demand Increasing in United States

JWR: Just a note about current firearms inventories at the major distributors from a 25 year industry veteran.  A majority of the medium to large size firearms wholesalers are experiencing significant stock shortages and inventories are at a “historic low”.   AR and AK inventories (regardless of manufacture or builder) are drying up very fast.  Most wholesalers are not taking back-orders from dealers on these items until the smoke clears.  Even handgun inventories are starting to get very thin, especially center-fire semi-autos.  The situation on ammo is better, but many industry retail purchasing agents coming out of this year’s SHOT Show …


Economics and Investing:

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 …


Economics and Investing:

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 …