Category: Economics & Investing

Cadet D. sent this: The Four Biggest Downside Risks To The Global Economy: Nouriel Roubini CBO: Exploding debt under Obama policies. The article begins: “The Congressional Budget Office said Friday that President Barack Obama’s tax and spending policies will yield $6.4 trillion in deficits over the next decade, more than double the shortfall in CBO’s own fiscal baseline — even after taking credit for reduced war costs. G.G. suggested this, over at Jesse’s Café Américain: Episodes of Hyperinflation from Diocletian to Bernanke – How It Might Unfold Today The U.S. Economy Is Running On Borrowed Money and On Borrowed Time …

With the stroke of BHO‘s pen on a Friday evening (after most of the newsies went home for the weekend), all pretension of a free civil economy in the U.S. have been discarded. Read this: National Defense Resources Preparedness. In essence, if they want it, they can now take it. Under this executive order, all segments of the economy have been been put on a war footing, and unprecedented Federal power has been established, without the consent of congress. Refer to Section 201 (b), and you will see that the order applies to both emergency and non-emergency conditions. Under the …

Short sales and foreclosures made up 52 percent of all recent Southern California home sales Kurt T. suggested this over at Zero Hedge: Guest Post: Caution – Falling Currencies How many times do I have to mention that there is no proper substitute for taking physical delivery of your precious metals purchases? Here is the latest horror story: Secret Service Raids Upstate Business Atlantic Bullion And Coin Inc. Accused In Alleged Ponzi Scheme. (Thanks to A.L.H. for the link.) Items from The Economatrix: Gold “Vulnerable” As US Treasury Bond Market Sell-off Worsens Europe’s Economic Crisis:  Portugal, Ireland, Spain, Italy, and …

Matt L. and Pierre M. both sent this: Watch Bernanke’s ‘Little’ Inflation Capsize U.S.: Shlaes Caller ID spoofing scams aim for bank accounts Items from The Economatrix: SurvivalBlog’s G.G. flagged this: David Stockman on Crony Capitalism More JPMorgan Chase whistleblowing. UK Could Lose Coveted AAA Rating, Warnings Fitch. [JWR’s Comment: Since our long term obligations are greater, per capita than that of Greece, our bond rating should actually be much lower.] The Global Economy Is Now More Vulnerable To Oil Prices Than Ever

A shadow inflation hits shoppers through economic sleight of hand: Inflation and the hidden side of finances. Reader B.B. sent this: CBO: Health law could cause as many as 20 Million to lose coverage Also from B.B.: Ann Barnhardt Schools – the real story about your health insurance yet another from B.B: Four large US banks fail stress tests Items from The Economatrix: US January Trade Gap Widens As Imports Hit Record High Broken Promises:  Pensions All Over America Are Being Savagely Cut Or Are Vanishing Completely Fed Nods To Better Economy, Mum On Next Move Savings Low, Worry High …

SurvivalBlog’s G.G. flagged this ominous news: U.S. on Pace for $1 Trillion Deficit. [JWR Adds: Beware, the debt service costs will explode, once interest rates rise!] K.P. suggested this at Zero Hedge: Chris Martenson Interviews Robert Mish: Front-Line Evidence That We are Nowhere Near a Gold Bubble. [JWR Adds: Keep in mind that we are still staring down barrel of a big, albeit brief pullback in the precious metals and equities in next 30 days, as margin calls will likely cascade from CDS derivatives fallout. Buy on the dips!] Goldman Sachs director quits ‘morally bankrupt’ Wall Street bank. (Thanks to …

K.P. sent a link to a guest post by Jeff Clarke of Casey Research, over at Zero Hedge: Time to Accumulate Gold and Silver? Uncle Sam’s Teaser Rate: Low interest rates disguise the federal debt bomb. (Thanks to G.G. for the link.) J.K. in Florida sent this: Trade Issues with China Flare Anew Items from The Economatrix: Warning of “Real” Anger at Banks Greek Debt Swap Could Be Short-lived Reprieve Alert From European Investment Banker Handicapping The Collapse

Ian R. flagged this must-read piece by Ambrose Evans-Pritchard: Global liquidity peak spells trouble for late 2012. Bruce Krasting: America is Using Tricks to Hide a Debt Crisis Worse than Greece Bill Whittle: The Vote Pump Lee M. sent this: Banks foreclosing on churches in record numbers Another incipient muni bankruptcy: Stockton residents watch their port city slip away: “Within three months, the Central Valley city of 300,000 could become the nation’s largest municipality to file for bankruptcy…”

RBS sent this: Bud Conrad: The Only Way Out Is to Inflate; Austerity not working?more money printing on the way G.G. flagged this one: Jobs Recession Now 49 Months: Longest Since WWII Matthew N. noted this article: Harrisburg to skip bond payments due next week. JWR’s Comment: Take a lesson from the sovereigns and just call it a “credit event.” No cause for alarm. Move along, folks. Nothing to see here. Items from The Economatrix: Financial Bubonic Plague Not So Fast On That Whole Economic Recovery Thing Wall Street Up On Jobs Data, Brushes Off Greek Default

K.P. suggested this piece at Zero Hedge: Germany to Review Bundesbank Gold Reserves in Frankfurt, Paris, London and New York Fed. Here is a brief quote: “The concern is that were the eurozone to collapse, Bundesbank’s losses could be half a trillion euros – more than one-and-a-half times the size of the Germany’s annual budget. In that scenario, Germany’s national patrimony of gold bullion reserves would be needed to support the currency – whether that be a new euro or a return to the Deutsche mark.” (When the going gets tough, they will repatriate their gold. Count on it.) Zero …

Those pesky derivatives have come back to bite: ISDA: Greek Debt Restructuring Triggers CDS Payouts. Since CDS contracts are measured in many billions of dollars, the counterparty risk is huge. As previously mentioned, they are calling this default a “credit event”, since it sounds more gentle and palatable for the sheeple. (Thanks to C.D.V. for the link.) U.S. to sell $6 billion in AIG stock. What does an America with no middle class look like? Items from The Economatrix: Consumer Borrowing Nearly At Pre-Recession Level Why Job Growth Might Mean Unemployment Oil Up On Greece Hopes You Won’t Believe The …

Tyler Durden: Some Observations On Recent Gold (And Silver) Volatility. (Thanks to K.P. for the link.) Items from The Economatrix: Global Markets: The Greek Bailout, The CDS Market, and The End of The World Lehman Emerges From 3.5 Year Bankruptcy Huge Spike In Repeat Foreclosures Claims For Jobless Aid Up; Low 4-Week Average Also Rise