Category: Economics & Investing

Thanks to David D. comes some analysis of how speculators can move markets: How Global Investors Make Money Out of Hunger. [JWR’s Comment: Some of the surge in farm commodities prices can be attributed to hedging on anticipated currency value declines and higher fuel and fertilizer costs rather than the result of–or an expectation of–lower crop production. In essence, nearly all tangibles are viable hedges when the global currencies are engaged in a race to the bottom. Steve W. sent some interesting news: Mint begins trial strikes in composition tests. The good news is that the trials strikes are part …

Chris D. recommended this YouTube mini-documentary: Confiscation and Inflation Reader Kevin K. liked this piece: The $U.S. Dollar Centric Derivatives Complex: Progenitor of Parasitic, Ponzi Price-Fixing Twenty Two Signs Pointing to a Devastating Global Recession   All You Need to Know About Iran, $200 Oil, and $6.00 Gas Prices Items from The Economatrix: The Worst Economic Recovery Since The Great Depression Nearly 1 Million Workers Vanish Under Obama Home Seizures May Jump 25% this Year as US Foreclosures Resume Apocalypse How?  Dire 2012 Forecasts Pessimistic Prognosticators

Peter Schiff: U.S. is In Worse Shape Than Europe An interesting podcast: Preparing for the Coming Dollar Meltdown with Gold, Silver, Agriculture, and Energy Huge Financial Bombs Just Got Dropped All Over Europe Items from The Economatrix: Market Resiliency Shines Through French Rating Cut Oil Prices Below $99 On New Europe Debt Concerns Europe’s $39 Trillion Pension Risk Grows as Economy Falters Economic Collapse — Why It Won’t Be Stopped

A curious financial situation has developed in Japan. Largely overlooked in the American press, Japan now has built up a staggering national debt that is approaching 300% of their GDP. This debt exists at the same time that there is tremendous alarm in the global media over Greece’s debt, that is only about 130% of GDP. (And lest we feel smug about those spend thrift Greeks, our own debt is now more than 100% of our GDP, and unlike Japan, we have a trade deficit rather than a trade surplus.) Why has Japan’s monstrous debt been ignored by the press? …

Debra P. sent a link to a news clip where a CNN reporter catches on: Hedge fund manager hoards nickels. (Although she muddies the waters by talking about numismatic value and base metal value in the same breath.) And speaking of nickel, this piece comes from Canada: Steel yourself for new non-nickel loonies, (Thanks to C.L. for the link.) A Colorado television station interviewed a “one man think tank”: Melting Gold Coins To Reduce National Debt–Man Says America’s Debt Would Be Erased If Government Would Melt Gold Coins Into Bars, Sell Them To Other Countries. Not only is he severely …

Several readers sent this: S&P Cuts Credit Ratings for Nine Euro Zone Nations J.J.H. recommended a satirical short film comparing the National Debt to the finances of a family. More monetization ahead: Fed to Weigh Further Easing Amid Doubts About Recovery. The government is now fully addicted to artificial money creation. Items from The Economatrix: There Goes The Neighborhood:  Cleveland To Demolish 20,000 More Foreclosed, Looted Homes Poverty In America Getting Worse China’s Collapse “Will Bring Economic Crisis to Climax in 2012”

R.C. sent this troubling bit of news: America Again Drops in Global Ranking of Economic Freedom Here is an article penned by Pat Buchanan: “Last May, Ron Paul filed his financial disclosure form, and The Wall Street Journal enlisted financial analyst William Bernstein to scrutinize his investments. The article includes this: “Paul’s portfolio isn’t merely different,” said an astonished Journal, “it’s shockingly different.” Twenty-one percent of his $2.4 to $5.5 million was in real estate, 14 percent in cash. He owns no bonds. Only 0.1 percent is invested in stocks, and Paul bought these “short,” betting the price will plunge. …

Reader RBS mentioned this great piece in Coin World: Strangeness in the 1960s–1964, 1965 like day and night SurvivalBlog’s own Pat Cascio sent this: Hungary Folds, Ready To Change Its Laws To Get European Bailout Money A reader sent this: Food inflation done quietly: Same store, same shelf, same price. Smaller package. 1.2 Billion Indians signing life away for biometric ID cards   Items from The Economatrix: Fed Officials Signal More Action May Be Needed. (Warm up that helicopter and monetize, Ben!) Crude Nears $103 $9 Gallon Gasoline Will Crash World Economies if WWIII Starts

G.G. flagged this: With Work Scarce in Athens, Greeks Go Back to the Land Farmers Sue Jon Corzine Over Missing Millions Items from The Economatrix: Unemployment Drop Masks On-going Decline Fed Seen Unveiling QE3 Bond Plans By Summer. Government Set to Sell Foreclosures in Bulk. (Here comes the initial haircut, at taxpayer expense.) US Bank Failures Declined in 2011

Absurd Gold/Silver Price Ratio; Why $500/oz Silver Is Now A Certainty In The Future I recommend watching this commentary on “the coming storm” for the economy: Afterburner with Bill Whittle: Facing the Arithmetic. While more of a pep talk than practical instruction, Whittle’s comments are spot on. G.G. sent this: Six million households have only five days’ savings One end result of derivatives counterparty risk: MBS fallout could hit Wells Fargo, JPMorgan. (Mortgage backed securities are derivative securities.) Items from The Economatrix:

B.B. sent this: Illinois Debt Downgraded Again, Worst in Nation Haircuts ahead! Merkel Meets Sarkozy to Draft EU Fiscal Rules as Part of Euro-Rescue Plan. The article includes a quote from IMF Chief Economist Olivier Blanchard: “‘The numbers are not good’ for Greece, Blanchard said on CNBC television. ‘There’ll have to be substantial haircuts.’” [JWR Adds: Along with currency revaluations, be ready for banks runs and currency export controls that may be enacted in many nations. And don’t be surprised if Ben Bernanke comes to the rescue–whether overtly or covertly–with trillions of Dollars from America. This will be money created …

John R. recommended a podcast interview of Martin Armstrong: Capital Controls Coming In The US Stephen M. sent this: Record Consecutive Treasury Dump From Fed’s Custody Account. [JWR’s Comment: And this comes amidst Eurozone turmoil when U.S. Treasury paper should be seen as a relative safe haven. So this some very bad news!] The fragility of “Just In Time” inventory processes: Global Economy Could Endure Disaster For Only a Week. (Thanks to Steve H. for the link.) Items from The Economatrix: The Possibility of $1,000 Silver Before Hyperinflation Factory Orders Rise, But Business Investments Slip Oil Price Stays Around $103 …

If you’d like some insight on the derivatives market, then don’t miss this interview: Ann Barnhardt & Warren Pollock Have an Open Conversation Joe W. sent this news from Germany: Fearful Investors Stash Money in Luxury Goods Items from The Economatrix: 34 Shocking Facts About US Debt That Should Set America On Fire With Anger Eight Analysts See Gold Going to $3,000 to $10,000 in 2012 Silver Sales Up As Supplies Slip Gold Jumps As Citi Says Gold Sell Off Over, Reiterates $2,400 Gold

Diana W. sent this: Cost to Make Penny and Nickel Rises, Annual Loss Reaches $116.7 Million. [JWR’s Comment: Presently, the U.S. Treasury is in effect giving you some of your taxes back, by minting nickels at a loss. Stock up ASAP, before this window of opportunity closes! (Debased steel nickels are coming soon!)] Mike T. suggested this: Bill Gross Warns Of Financial Market Implosion And The End Of Economic Life As We Know It Bailout concerns mounting for Federal Housing Agency F.G. mentioned some interesting background: Cracking The Credit Card Code Items from The Economatrix: 10 Predictions for Work and …