Category: Economics & Investing

Courtesy of David H. comes a link to a fascinating interview: Nomi Prins on U.S. Banks’ Derivative Exposure. The counterparty risk in the opaque OTC derivatives market is potentially huge! Reader Tom M. sent this prediction of social disorder in Europe and beyond: Why all signs point to chaos They’ve learned how to work the system: 30 Major U.S. Companies Spent More on Lobbying than Taxes Damon S. sent this: Silver price: Hey Silver Bugs, You Cryin’ Yet? [JWR’s Comment: I’m using this dip as the opportunity to add a bit more silver to my silver stash in JASBORR.] Items …

If you’ve been waiting for a dip to buy some more precious metals, this is it. (As usual, I recommend buying silver rather than gold. And since platinum is at an odd point in its history where it is worth less than gold, I’d recommend buying a few Platinum American Eagles, Credit Suisse 1 Oz. Platinum Bars, Platinum Australian Platypus coins, or Platinum Nobles, if you can find any. ) Peter Schiff: How Are You Going To Survive When Gold Is Money Again? Yet another advantage of The American Redoubt, to consider: Map of Electricity bills by state. This dovetails …

Tweet sparks 10,000-strong rush on Latvian bank after rumours it was in financial crisis. (Thanks to J.B.G. for the link.) Pinning down the fine print at E Trade, Scottrade, and Fidelity on hypothecation policies Gerald Celente: Predicts An Economic 9/11 For The United States Economy The Daily Bell asks: BIS Calls for Hyperinflationary Depression? Karl Denninger: Wheeee! We Go Down The Bowl Last! Items from The Economatrix: Back-door Bank Runs In Europe Have Started Is The Eurozone Banking System About To Collapse Signs of Disintegration Jim Sinclair On Gold And The World Financial System

Gerald B. recommended: The Engineered Euro Crash – William Engdahl on GRTV. Engdahl explains how the Greek government concealed the extent of their debt by using exotic derivatives provided by Goldman Sachs, and how Greece was later slammed by George Soros and “the Big Boys”. JWR Adds A Bit of Humor: But don’t blame Goldman Sachs, since any Greek will tell you that derivatives were invented in Greece. (After all, everything was a Greek invention.) Zero Hedge reports another Latvian bank run. Gold Model Forecasts $4,380 Gold Price. [JWR’s Comment: I’m generally anti-chartist, but this provides some food for thought.] …

Jim Rogers: “The U.S. Federal Reserve Is Lying To Us” By way of Tamara’s View From The Porch blog: Like it or not, the euro is doomed. Tam’s comment: “Formerly the province of goldbugs, nationalists, and other assorted doomsayers, predictions of the Euro’s imminent demise are going mainstream. This is the inevitable result of letting Arthur Bach and Ebenezer Scrooge share a joint checking account.” An interesting 20 minute interview with Jim Sinclair. He discusses: increasing precious metals market turbulence is looming, MF Global, a key change in bankruptcy laws (that benefits derivatives holders), hypothecation, and a fundamental shift in …

Dear Mr. Rawles, I have read your five page article Mass Inflation Ahead – – Save Your Nickels.  You stated that: “…should Uncle Sam decide to devaluate our present fiat currency, holders of piles of nickels will typically make them unexpected beneficiaries of a 10X, 100X or even 1,000X gain of the purchasing power of their coins.”  You went further to say that “Governments just assume that most citizens just have a couple of pocketfuls of coins at any given time.  So if a currency swap were to happen while you are sitting on a big pile of nickels, then …

G.G. flagged this: Eurozone banking system on the edge of collapse C.D.V. spotted this: Beware of More “Hopium” from the Crucial European Summit Bob G. suggested this one: Buying Silver Is Like Buying Gold At $554 Today Items from The Economatrix: US Household Wealth Takes Biggest Hit Since 2008 Corporate America Sitting On Jobs Crisis Solution Gold Tsunami: On the Cusp of $3,000? Eight Charts From a Brave New Banking and Economic System

Jim Rogers Versus Marc Faber: Faber Cautious on China; Rogers Bullish on All Commodities Portugal Raids Pension Funds to Meet Deficit Targets Gerald Celente: ‘IT’S FASCIST. CAN’T YOU SEE IT?” – Part ONE. Celente describes his lack of recourse on his MF Global gold futures contract. Nothing trumps buying physical metals and keeping them at home! Speaking of Gold and MF Global: The Gold “Rehypothecation” Unwind Begins: HSBC Sues MF Global Over Disputed Ownership Of Physical Gold. (Thanks to Eli T. for the link.) Items from The Economatrix: November Service Sector Cools, Factory Orders Fall Eurozone Crisis:  Britain’s Companies Prepare …

Jim M. sent me this: Citi: Euro Collapse Would Spark Global Depression, Push Unemployment Above 20% G.G. sent this: MF Global fallout delays U.S. farm seed, land deals Copper theft becomes a crisis for public agencies. (Thanks to reader S.B. for the link.) Daniel M. suggested a sobering piece by John Stossel: Ten Years to Greece   Standard & Poor’s to Eurozone: Fix It or Else… Items from The Economatrix: USPS Slowdown, 100,000 to Lose Jobs Many Americans Already Done with Holiday Shopping Soros:  Global Financial System In “Self-Reinforcing Process Of Disintegration” Jim Willie:  “The Public Will Not Wake Up …

B.B. sent this: UBS’ Advice on What to Buy in Case of Eurozone Breakup: “Precious Metals, Tinned Goods and Small Calibre Weapons” Also over at Zero Hedge: Rumor Meet News: S&P to Put All 17 Euro Nations on Downgrade Watch. (Thanks to Keeley for the link.) Lord Stevens: youth unemployment will fuel disorder on the streets. Chris Martenson and James Turk talk about the Global Debt Explosion, Europe, and Derivatives. Martenson asks: “How do you un-wind $600 trillion to $1 quadrillion in derivatives?” Richard Russell: Expect a Jolt in Commodity Prices in the Near Future Items from The Economatrix: Fed …

Central Banks Dollar Liquidity Only Prolongs The Euro Debt Crisis. J.B.G. sent this: Desperately Seeking Capital: Berlin May Have to Nationalize Giant Commerzbank. By way of Glenn Reynolds at Instapundit comes this: China to Prepare for Social Unrest. Jim Rogers: US Falling Into ‘Deeper Trouble,’ Faces 2013 Depression. (Thanks to B.B. for the link.) G.G. sent this: Anxious Greeks Emptying Their Bank Accounts Items from The Economatrix: MF Global Proves Enron-Era Accounting Lives On Central Bank Intervention:  Much Ado About Nothing Analyst:  Earnings Outlook May Be Deteriorating Rapidly Analysis:  BofA Close To Its Limit For Share Issuance

Abracadabra! Bankrupt Cities are Suddenly Un-Bankrupt! (Or Not) Jim Rogers: “You Should Own Silver” G.G. sent this: Italy PM unveils sweeping austerity package. Buried down in the article’s fine print: Cash transactions of more than €1,000 are banned. Items from The Economatrix: Eurozone Debt Crisis Worsens As Financial World Holds Breath Over Pending Financial Apocalypse Secret Fed Loans Gave Banks $13 Billion Undisclosed To Congress Audit Of The Federal Reserve Reveals $16 Trillion In Bailouts Web of Debt – How Banks And The Federal Reserve Are Bankrupting The Planet

Zimbabwe Bashes US Dollar, Aligns With Yuan. (Thanks to K.P. for the link.) Also courtesy of K.P.: Eric Sprott – Silver Producers: A Call to Action Jim V. pointed us to a great interview with Kyle “20 Million Nickels” Bass, at AmeriCatalyst. He calls default on Greek sovereign debt inevitable and inescapable. Then comes Japan, and in the long run, the United States. He has the numbers to back this up. He also has some interesting comments on the importance of taking physical delivery of precious metals. On balancing the Federal budget, he made this prescient comment: “The bottom line …