Category: Economics & Investing

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 …

Remember when I compared Quantitative Easing debt monetization to crack cocaine addiction? It appears that Tim Geithner and Ben Bernanke have moved up to the level of co-dependency and are only one step away from collapsing on an uncovered mattress on the floor of a squalid roach-infested apartment. Read this: Wall Street Journal: Fed Buying 61 Percent of US Debt. The next thing you know, Tim and Ben will be passing the glass pipe and singing a duet: “Its easy come, easy go, little high, little low…” This should make you feel cheery when you write your check payable to …

Reader R.B.S. suggested this article: Cashless: The Coming War on Tax-Evasion and Decentralized Money Euro zone unemployment reaches near 15-year high Government bond funds losing their allure Items from The Economatrix: Gold Pushes Higher With Oil, Stocks On Data Manufacturing Up, Construction Spending Falls Unemployment May Be Down, But So Are Wages And Benefits

The gasoline shortage in England is not getting much better: The great Easter get nowhere: RAC warns that petrol panic buying risks millions of drivers not being able to fill their tanks for holiday break Marc Faber: ‘Massive Wealth Destruction’ Is About to Hit Investors (A hat tip to Michael W. for the link.) Diana V. suggested this: Nine Gold Myths Everyone Needs to Understand to Survive this Global Economic Crisis Over at MyBudget360: The creeping cost of consumer inflation brought to you by a lower US dollar The impending urban water crisis. (Thanks to R.C. for the link.) Several …

Debasement and Debt Monetization are the last refuges of modern-day profligate spending governments: Geithner sees cash in coins’ metal. I’ve been warning about the composition change in nickels for three years. I hope that you have been methodically building your stack during this time. Once he composition changes, you will have to start sorting nickels. But for now, you can stack ammo cans or boxes full of rolls, painlessly. New in the Nerd World: Societal collapse as a marketing angle. (Thanks to PNG for the link.) Who Are the Nation’s Biggest Suckers? Lottery Players. (As the Late Memsahib was fond …

10 Reasons Why the Reign of the U.S. Dollar as the World Reserve Currency is About to End Is Inflation, a Stagnant Economy, and Lower Standard of Living in Our Future? Lee M. sent this: Student Loans on Rise — for Kindergarten After the riots, Spain swings the axe on spending. (Thanks to Pierre M. for the link.) Items from The Economatrix: Recovery?  Housing Says It’s A Hoax Security Breach Hits US Card Processors, Banks A Cashless Society May Be Closer Than Most People Would Even Dare To Imagine Providence, Rhode Island Bankruptcy Seen As Unavoidable On Budget Gap

Sean B. spotted this in The LA Times: More municipalities betting on pension bonds to cover obligations. Note that the “pension obligation bonds” that they mention are actually derivatives. Jim Rogers & Peter Schiff Agree, U.S. Treasury Crisis In 2013   Truth About $6 Gas, $200 Oil and the Quest for Energy Independence   2012 the year of the short sale – Short sales over 50 percent of all MLS inventory in Southern California. Items from The Economatrix: Americans Angry As Gas Nears $4 Durable Goods Orders Hint at Weak First Quarter Gas Prices Expected To Continuously Increase Through Summer …