Category: Economics & Investing

G.G. sent this piece by Peter Schiff: Why America Should Declare Bankruptcy Now Writing in Sovereign Man, Simon Black points out that Senator Schumer’s proposed “Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy” is written retroactively, for anyone that has expatriated in the past ten years! Perhaps Mr. Schumer missed reading Article 1, Clause 3 in the U.S. Constitution. (Which bars any ex post facto laws.) Jim W. sent us this: Japan is Broke – Highest Debt Ratio of Any Industrialized Nation China Warns Australia to Choose “Godfather” – China or U.S. CDV sent this: Greece: Top Three risks …

Dr. Paul Craig Roberts: Recovery or Economic Collapse? Bet on Collapse — The Financial Crisis Could Destroy Western Civilization Using the young as a shield for hitting the deficit spending wall – the bill will come due for the young. Government spending prioritizes old American immediate needs and will send the bill to the young. Merkel Heads for Debt Showdown with Hollande at EU Summit David Stockman: We are Coping With the Crash of a 30-Year–Long Debt Super-Cycle Items from The Economatrix: War-gaming Greek Euro Exit Shows Hazards in 46-hour Weekend (Reader Sue C. noted about this same article: “The …

A Greece euro exit could make Lehman’s collapse ‘look like a tea party’ K.A.F. sent this: U.S. lets China bypass Wall Street for Treasury orders Several readers sent this link: Secret Central Bank Aid Props Up Greek Banks OECD sees euro crisis threatening world recovery Items from The Economatrix: Gold’s Fortunes Will Soon Turn Around Panic Like It’s March 2009 Fears Of Bank Runs Increase In Southern Europe Gasoline Prices Keep Falling But Relief Could Be Short Lived

Commentary from Anthony Wile, Editor of The Daily Bell: If the Euro Ends, So Will the World as We Know It? G.G. flagged this: The Number of Those Working Past 65 is at a Record High John Williams: The Recovery is an Illusion 18 Signs That The Banking Crisis In Europe Has Just Gone From Bad To Worse How big will JPMorgan’s losses be? Reader S.S. in Mississippi pointed me to Wikipedia’s page on Sovereign Debt. The comparison’s of the debt levels of various nations are instructive, especially when seen as a percentage of GDP. By Abandoning the Gold Standard …

Ruh Roh: Europe’s Invisible Bank Run Accelerates. (Thanks to B.B. for the link.) J.D.D. sent this: Nightmare foretold if Greece heads for euro exit The lingering legacy of the shadow inventory – homeownership rate will bottom in 2014. Goldman Sachs predicts homeownership bottom. AmEx (American Expat) spotted this: Gold & Silver Decline: George Soros Nearly Quadrupled Gold Stake in Q1 James K. sent this: Economist Nouriel Roubini predicts trouble ahead for economy Mr. Singh sent this link: John Embry interviewed by James Turk again (on the 18th May 2012) Embry notes: “If you are negative on gold, then you must …

JPMorgan’s losses grow Massive Inflation Coming, Warns Donald Trump. (Thanks to Pierre M. for the link.) Ned M. suggested this: Geithner Comes Clean: “I Don’t Understand It” I found a link at The Drudge Report to this: $12,984–Increase in Debt Per Household Since First 2011 Bipartisan Spending Deal Items from The Economatrix: The $1.024 Billion Bank Run Why A Greek Exit From The Euro Would Mean The End Of The Eurozone Over 55 and Jobless, Americans Face Tough Hunt

Get Ready: We’re About To Have Another 2008-Style Crisis B.B. sent this: Cost of Greek Exit from Euro Put at $1 Trillion USD Spain falls into recession amid fears of eurozone bank run China’s Economic Slowdown Foreshadows Trouble for the U.S. Items from The Economatrix: Jimmy Rogers:  “Volume Is Not Going To Come Back.  We’ve Had A Great 30 Years.  That’s Not Going To Come Back!” TMFR Podcast #19:  Jim Willie. “Jim ties together today’s seemingly unrelated headlines of European sovereign debt, JPM hedging losses and paper gold price drops and ties them all together into a tidy little package …

Only Chuck Schumer could dream up legislation so repugnant: Schumer Introduces Ex-PATRIOT Act: Will Banish Those Who Renounce US Citizenship. Greg P. sent this news from Europe: The Next Money: As the Big Economies Falter, Micro-Currencies Rise Matt C. sent us this: JPMorgan Fiasco Means Higher Interest Rates Ahead JPMorgan, a counterparty to itself Over at Alt-Market: How The U.S. Dollar Will Be Replaced Items from The Economatrix: The Curious Calculus of the US Employment Numbers April Retail Sales Hint at Slower Spending Pace Here’s How the Whole Eurozone Could Unravel in Just a Few Months Oil Price Still Falling …

Those #&%*#^@ derivatives! JPMorgan exec disregarded warnings on portfolio risk MC in Florida suggested this Zero Hedge article: Japanese Pension Fund Switches to Gold for the First Time Ever B.B. sent this: U.S. has Two to Five Years Before Financial Meltdown. Items from The Economatrix: Bank Runs Hit Greece. (Another news article quotes Greek President Karolos Papoulias: “[Greek Central Bank chairman] Provopoulos told me that of course there’s no panic but there’s great fear which can evolve into panic.”) As Europe’s Economic Outlook Darkens, US Risks Grow Oil Drops a Fourth Day on Rising U.S. Supplies, Greek Elections S&P in …

The latest coinage debasement news, this time from The Philippines: Coin hoarding soon a crime? JWR’s Comment: With orchestrated currency inflation there comes the inevitable day when seigniorage costs advance to unacceptable levels, and the metallic value of any given coin greatly exceeds its face value. Rather than doing the honest thing–knocking a few zeroes off their paper currency–governments often resort to bans on coin melting and coin exportation. Anti-hoarding laws are much less common in First World countries as there are typically no limitations on the amount of a currency that someone holds in an ostensibly “sound” currency regime. …

Several readers sent this: Merkel tells Greece to back cuts or face euro exit Here is a sobering quote: “What will prevail are armed gangs with Kalashnikovs and which one has the greatest number of Kalashnikovs will count … we will end up in civil war.” G.G. sent this: 49% of Americans saving zilch for retirement Also from G.G.: 50-State Small Business Tax Friendliness Survey Michael H. spotted this: California facing higher $16 billion shortfall. Items from The Economatrix: Stocks Close Down 1% on Bank, Europe Worries Gold Drops to 4.5-month Low as Euro Sinks Oil Falls as Greece, China …

G.G. sent this: ‘High Inflation Causes Societies to Disintegrate’ Thanks to Jeff W. for this one: Greece Exit, Euro-Zone Collapse, Spain and Portugal Will Follow Within Six Months Facebook Co-Founder Saverin Gives Up U.S. Citizenship Before IPO. (OBTW , the earlier report of Michelle Bachmann earning Swiss citizenship has already been overcome by events. She has declined it.) Chartist analyst Willem Weytjens predicts: 20 Years From Now: Gold @ $12,000 & Silver @ $1,000? Another from G.G.: Regulators Close Florida Bank; Failure Toll Rises to 23 in 2012 Items from The Economatrix: Drop In Jobless Claims Eases Labor Market Fears …

G.G. flagged this: One in Three Young U.S. Workers Are Underemployed John Williams: The Real Unemployment Rate: 22%?Not 8.1%–The coming fiscal cliff: hyperinflation on track for 2014 The wrecking ball of hidden inflation and Fed based strategies – food inflation far outpacing overall inflation and eating away at the purchasing power of 46,000,000 Americans on food stamps. Jim Willie: Gold Cover Clause Guidance Items from The Economatrix: Anti-Gold Propaganda Push, Gold Cover Clause For Enabling Competing New Currencies The Fed, Wall Street Prepare To Unleash Crisis 2.0 Faber Sees Crash Like in 1987 if US Stocks Climb Higher The Economy …