Category: Economics & 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 …

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 …

Surprise, surprise: New Script Calls For More U.S. Quantitative Easing AmEx sent this: New Rules Target Offshore Funds Diana V. sent this: Canada unveils digital currency. Diana’s comment: I hope it will work if the grid goes down! Savings come slowly for hybrid, electric car owners B.B. sent this item: Stuart Varney on why food prices have skyrocketed in past year Derivatives dirty pool: JPMorgan Trader Accused of “Breaking” CDS Index Market with Massive Prop Position. (Thanks to Pierre M. for the link.) NFP Big Miss: 120,000, Expectations 205,000 Unemployment 8.2%, “Not In Labor Force” At New All Time High …

Tom. H. sent this bit of CNBC punditry: Silver: Poor Man’s Gold Turning to Fool’s Gold? [JWR’s Comment: It is actually U.S. Dollar-denominated investments that are for fools. The Dollar is doomed. Silver and gold are merely a couple of the best hedges on that inevitability.] Don’t Call Them ‘Extreme Couponers’: Meet the Coupon Enthusiasts Over at Seeking Alpha: A Run On Guns Is Making Investors Happy G.G. sent this: Obama’s Budget: ‘Interest Payments Will Exceed Defense Budget’ in 2019. [JWR’s Comment: Or much sooner, if interest rates jump.] B.B. sent this: World food prices rise further, raising fears of …

R.C. sent this: Higher Rates End Obama’s Borrowing Cost Holiday. Speaking of interest issues: Interest on Federal Debt Hit $104B in First Half of FY2012—Despite Low Interest Rates Owe The IRS? Bill Would Suspend Passport Rights For Delinquent Taxpayers. (Thanks to F.G. for the link.) The latest from Silver Shield: The Myth of Silver Confiscation Items from The Economatrix: Iran, Oil, Europe Pose Risk To Economy:  Geithner Stanford’s Lazear:  US Suffering Worst Economic Recovery In History Iran, Oil Prices, And Gambling With The World Economy Gasoline Prices May be Getting Close to a Peak

C.D.V. highlighted this piece by Richard Lehmann, over at Forbes: Ben Bernanke’s Secret Inflation Plan Destruction of Spain’s Economy Duplicates Greece Ron in Florida mentioned this at Zero Hedge: The Second Foreclosure Tsunami Is Coming, And Is About To Kill Any Hopes Of A “Housing Bottom” James K. sent this: Production of presidential dollars reduced G.G. flagegd this nes item: Government records 40th straight deficit month in March Items from The Economatrix: Crude Ends Higher Pre-Holiday, Posts Weekly Gain S&P Posts Worst Week an 2012 as Bulls Waver March Sales Brighten Retailers’ Profit Prospects

Several readers sent this: Next Great Depression? MIT researchers predict ‘global economic collapse’ by 2030. Of course, many SurvivalBloggers would consider the timeframe of their prediction overly optimistic. SurvivalBlog reader G.T. Mace, a gold dealer, sent me some details on a new gram units gold bullion product from KB Edelmetall Gmbh of Switzerland and Germany that is packaged in tamper-proof plastic, in the form factor a credit card: Karatbars. Be advised that I haven’t researched their mark-up percentage (and you definitely should, before buying), but the concept is captivating. BTW, with 31.1035 grams per Troy Ounce you can simply divide …