Category: Economics & Investing

Bill Whittle discusses entitlements, the debt, and the inevitability of credit downgrades, higher interest rates, and hyperinflation: I’m Talking To You James K. highlighted this news item in McNewspaper: Worst-case scenario is ugly if Greece leaves the Euro Reader Sue C. sent us this: Countries across world gird for Greece turmoil G.G. recommended this article in Der Spiegel: Desperate Greeks Withdraw Money from Accounts Strong ties between JPMorgan, Senate Banking Committee. JWR’s Comment: The Senate committee members must be “…shocked, shocked to find that gambling is going on…” at JPMorgan. Diana V. flagged this: Hong Kong Exchange to Buy London …

Now we can see who benefited from all that “stimulus”: Private Jobs Down 4.6 Million From January 2008; Federal Jobs Up 11.4%. (Thanks to Pierre M. for the link.) Joe G. sent this: U.S. Home Sales to Foreigners Rise as Low Prices Draw Investors: These numbers are mind boggling: US Federal Deficit Totals $844.5B Through 8 Months. (Thanks to G.G. for the link.) Mary F. sent this: Dread and Uncertainty Pervade Life in a Diminished Greece Items from The Economatrix: The Euro Is Doomed Gary North:  George Soros Warns EU Going Down In Three Months Data Points to Soft US …

The Two Worlds of 2012: Will We Have “Inflation” or “Deflation”? Europe Brings Out The “Capital Controls” Bazooka U.S. Derivatives Probe Eyes Bank Control of LCH.Clearnet Pierre M. sent this: Italy ‘may need bailout’ – The Irish Times Items from The Economatrix: Fed Says US Wealth Fell 38.8% in 2007-2010 in Housing S&P Says US to Avoid “Fiscal Cliff,” Risks Remain Moody’s Cuts Cyprus Sovereign Rating Two Notches Fall In May Retail Sails Driven Entirely By Lower Gas Station Spending

JWR, My wife and I have been discussing which type of physical silver to buy to get out of dollars, but we are unsure of where to start.  On your blog and in your books, you expound on the benefits of pre-1965 coinage with its 90% silver content, and we have looked at buying these coins in bulk from Northwest Territorial Mint.  While perusing that site, we also found that they sell one troy ounce Silver Eagles struck by the US Mint that are .999 pure silver.  There are pros and cons to both the pre-1965 coins and the Silver …

To follow-up on a previously-mentioned piece: Firearm-friendly towns in Idaho lure gun makers. (Thanks to Mitch C. for the link.) Peter Schiff Back on Capitol Hill Reader Tom K. found a Deloitte study that shows some insights on America’s true debt situation: America’s Debt Crisis: New research reveals five unexamined risks Pierre M. suggested: Damning Evidence in the MF Global Case B.B. sent this: Driven by gold and silver prices, thieves target coin collections Global Financial System, A “Dead End of Historic Proportions” Items from The Economatrix: Greece Warned as “Beyond Repair” The Euro’s “Guilty Men” Are Now Steering Europe …

The current liquidity crisis on the southern periphery of the Eurozone now appears likely to spread to all of Europe, and then globally. There are already quiet electronic bank runs in progress in Greece and Spain. On Monday, a bank “holiday” was announced in Italy. More bank runs will likely follow. As of today, Wednesday, June 13, 2012, I strongly urge all SurvivalBlog readers to immediately draw down their checking accounts and liquidate their CDs, passbook savings accounts, and most of the their stocks to buy tangibles. If you already own a retreat, an honest one year storage food supply, …

This hardly comes as news to most SurvivalBlog readers: Fed: Americans’ wealth dropped 40 percent. Stepping back to look at the big picture, we must ask: Cui bono? The banksters certainly haven’t lost much money, since the government obligingly bailed them out with taxpayer funds. Greek Blackouts Risked As Power Companies’ Cash Runs Out: Energy. (Thanks to Dennis M. for the link.) Who really benefits from credit derivatives? Tyler Durden of Zero Hedge: The ‘Big Reset’ Is Coming: Here Is What To Do The more the government tries to “fix” things, the more that it fouls things up: China tariffs …

R.C. sent this: Ready or Not, Stagflation Is Here Reader Sue C. suggested this: Insight: In Greece, a Painful Return to Country Roots Peter S. spotted this piece by Mish Shedlock: Monopoly Money vs. Bernanke Money, is There a Difference? Argentina loses a third of its dollar deposits. (Thanks to Pierre M. for the link.) G.G. flagged this: CBO: Federal debt to double in 15 years–Fiscal challenges worst since WWII Also from G.G.: Regulators close four banks in four states; makes 28 US bank failures so far this year Items from The Economatrix: US Factory Orders Post Surprise Fall in …

Reader Lee M. mentioned this by Bill Fleckenstein: The stimulus ship sets sail: The pressure is building on central banks worldwide to do the one thing they think works: print money. Expect to see QE3 bond-buying from the Fed, and similar moves in Europe, very soon. C.D.V. sent this one: CBO paints grim long-term debt picture Bruce Krasting of Zero Hedge discusses currency controls, in reverse: $7 Million a Minute. It is strange, indeed to see a country putting up walls to stop currency from coming in. Items from The Economatrix: Paul Craig Roberts: Collapse At Hand Greece Warns Of …

John R. sent this: 647,762,000,000,000 Reasons to Worry: The Derivatives Time Bomb. Food is the New Oil, Land is the New Gold. (Thanks to Bob G. for the link.) Reader J.B.G. sent this: Pharmacy queues show price Greeks are paying for credit breakdown L.M.W. suggested some more great commentary from Karl Denninger: On “Austerity” and False Gods Items from The Economatrix: AIG Chief Sees New Retirement Age as High as 80 After Crisis. Shenandoah:  A Fascinating Editorial From A Chinese Economist On The US Dollar The Dark Financial Clouds Engulfing Europe

Nearly everyone who has bought residential real estate in the U.S. as “an investment” since 2005 can now call themselves contrapreneurs. The seasonally-adjusted Case-Schiller data for Q1 of 2012 shows that new lows have been reached in many markets. FWIW, I’ve been reading “The bottom is near”-themed articles since 2008, but I’m not holding my breath. In some markets, the majority of sales are either short sales or “bank owned” (foreclosed) properties. It may be another decade until the real bottom is reached. Regular content contributor Pierre M. sent this: BIS warns global lending contracting at fastest pace since 2008 …