Category: Economics & Investing

Ambrose Evans-Pritchard: Europe faces Japan syndrome as credit demand implodes C.D.V. liked this Wall Street Journal piece: The Great California Exodus The young and the jobless – Half of bachelor’s degree-holders under the age of 25 are unemployed or underemployed, in the US. Social Security short fall highlights deeper reality of economy. Pierre M. sent this: De Borchgrave: Geneva gnome’s global dread Items from The Economatrix: Russia and Mexico Both Buy Nearly $1 Billion in Gold in March 22 Red Flags that Indicate that Very Serious Doom is Coming For Global Financial Markets What Happens When All the Money Vanishes …

Jim Sinclair: The Implications of China Paying in Gold. (Thanks to K.T. for the link.) G.G. flagged this one: In apparent first, a public pension plan files for bankruptcy. Bram S. spotted this: Doug Casey on Taxes and Freedom Over at Dr. Housing Bubble: The crashing US housing metro areas – Atlanta home values crash by 17 percent in last year and Las Vegas continues to move lower. Chicago, Los Angeles, and San Francisco continue to make post-bubble lows. Items from The Economatrix: Social Security Fund to Run Out in 2035, Trustees Say In an Apparent First, a Public Pension …

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

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

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 …

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? …

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 …

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 …

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 …

“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 …

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 …