Category: Economics & Investing

Ian R. flagged this must-read piece by Ambrose Evans-Pritchard: Global liquidity peak spells trouble for late 2012. Bruce Krasting: America is Using Tricks to Hide a Debt Crisis Worse than Greece Bill Whittle: The Vote Pump Lee M. sent this: Banks foreclosing on churches in record numbers Another incipient muni bankruptcy: Stockton residents watch their port city slip away: “Within three months, the Central Valley city of 300,000 could become the nation’s largest municipality to file for bankruptcy…”

RBS sent this: Bud Conrad: The Only Way Out Is to Inflate; Austerity not working?more money printing on the way G.G. flagged this one: Jobs Recession Now 49 Months: Longest Since WWII Matthew N. noted this article: Harrisburg to skip bond payments due next week. JWR’s Comment: Take a lesson from the sovereigns and just call it a “credit event.” No cause for alarm. Move along, folks. Nothing to see here. Items from The Economatrix: Financial Bubonic Plague Not So Fast On That Whole Economic Recovery Thing Wall Street Up On Jobs Data, Brushes Off Greek Default

K.P. suggested this piece at Zero Hedge: Germany to Review Bundesbank Gold Reserves in Frankfurt, Paris, London and New York Fed. Here is a brief quote: “The concern is that were the eurozone to collapse, Bundesbank’s losses could be half a trillion euros – more than one-and-a-half times the size of the Germany’s annual budget. In that scenario, Germany’s national patrimony of gold bullion reserves would be needed to support the currency – whether that be a new euro or a return to the Deutsche mark.” (When the going gets tough, they will repatriate their gold. Count on it.) Zero …

Those pesky derivatives have come back to bite: ISDA: Greek Debt Restructuring Triggers CDS Payouts. Since CDS contracts are measured in many billions of dollars, the counterparty risk is huge. As previously mentioned, they are calling this default a “credit event”, since it sounds more gentle and palatable for the sheeple. (Thanks to C.D.V. for the link.) U.S. to sell $6 billion in AIG stock. What does an America with no middle class look like? Items from The Economatrix: Consumer Borrowing Nearly At Pre-Recession Level Why Job Growth Might Mean Unemployment Oil Up On Greece Hopes You Won’t Believe The …

Tyler Durden: Some Observations On Recent Gold (And Silver) Volatility. (Thanks to K.P. for the link.) Items from The Economatrix: Global Markets: The Greek Bailout, The CDS Market, and The End of The World Lehman Emerges From 3.5 Year Bankruptcy Huge Spike In Repeat Foreclosures Claims For Jobless Aid Up; Low 4-Week Average Also Rise

Drockton:  Inflation And Economic Collapse 15 Potentially Massive Threats To The U.S. Economy Over The Next 12 Months European Banks Now Face Huge Margin Calls As ECB Collateral Crumbles. JWR’s Comment: Just as I warned you! This may cause a sharp sell-off of stocks, bonds, and precious metals, as everyone scrambles for cash, to cover margin calls. Look at this as a great buying opportunity. (Theoretically, silver could briefly plunge to $22.52 per ounce.) Keep cash on hand and be ready to pounce on some physical silver. Items from The Economatrix: Three Charts Of The US Consumption Crash Dead Ahead …

Long-time SurvivalBlog reader and contributor R.B.S. sent this: Risky Places To Swipe Your Debit Card Pierre M. sent this from ABC News: Green Firms Get Fed Cash, Give Execs Bonuses, Fail Over at ETF Daily News: The Rising Price of Commodities: The Most Investable Trend Over The Next 20 Years Items from The Economatrix: Gold Price Will Plunge Below $1,000 Bears Claim Gasoline Pump Price In US Climbs For 24 Straight Days Oil Up On Iran Fears; Growth Worry Limits Gain Gold Recovers From Lows As Dollar Retreats

Let me start by saying that I am not a professional financial advisor.  Nor am I someone who wants to sell you anything, or give “investment” advice.  I am a science teacher.  I had some experience working on Wall Street in my previous carrier.  I have had personal experience trading stocks.  I also have had experience saving money in precious metals.  Many of the questions that I had when I started buying silver and gold are the same ones that you may be asking as well.  You may ask questions like: how and from who, or what kind, or what …

Poor and Elderly: The Five Worst States to Grow Old In. (It should come as no surprise that most of The American Redoubt states are at the opposite end of the list–those with the smallest income gap.) Greek default looms as voluntary debt deal looks set to fail. Central banks’ $9 trillion is global economic lifeline How Much Gold Do You Need to Pay Yale’s Tuition? The Same as in 1900 Items from The Economatrix: “Plan For An Economic 9-1-1”:  Analysts Warn Americans to Buy Guns and Gold, Predicting Market Crash and Street Riots Within A Year

Trillion Dollar Fraud: SEC could seek global MBS settlement Barnhardt: On Money, Banking, and Men Bank Rate Bomb Will Destroy the Smallest and Weakest. (Thanks to M.E.W. for the link.) Items from The Economatrix: Fannie And Freddie Drop The Ball Stockton, California Could Become Biggest City to Go Bankrupt European Funding Sows Seeds of Next Crisis Soaring Oil Prices Will Dwarf The Greek Drama

From G.G.: Inflation: Not as low as you think Also from G.G.: U.S. closes 12th bank of 2012 One more from G.G.: David Stockman; You’d Be A Fool To Hold Anything But Cash Now Items from The Economatrix: Fed Officials Flag Soft Economy But Mum On Easing Wall Street Slips But S&P Up For Third Straight Week How Gold Rises Over $5,000/oz. But Is Only Worth $500 Fractal Gold Projection Of $3,500 Into Mid-Year Remains Intact

The Lumberman recommended this piece by veteran market analyst Bob Chapman: Financial Vehicles of Mass Destruction Over at Fierce Finance: Criminal charges not likely in MF Global scandal. Corzine, Abelow, Roseman, Stockman, et al have escaped criminal indictments, but I suspect that they will be in court fighting civil lawsuits for the next four or five years. <Sarcasm on:> Perhaps Federal prosecutors can indict the MF Global’s janitor. After all, he was seen carrying out those trash bags full of paper shreddings. <Sarcasm off> What Caused Silver’s Take-Down?   Derivatives: Exchange Traded Derivatives Trading Volumes Increase 11% in 2011 Items …

Society’s Five Stages of Economic Collapse (Originally posted at the SHTFPlan blog. Greece Is D-O-N-E, $70 Silver In 90 Days. [JWR’s Comment: But we should expect a brief dip in metals, if there is a banking crisis caused by the Greek “credit event” (read: default). In a credit crisis, many assets–even precious metals–will be liquidated to cover margin calls. Look at that as a short term buying opportunity.] Those pesky derivatives, again: Greek Default Payouts May Bring Some Costly Surprises Items from The Economatrix: Massive Resignations Have Started 2.0 Gerald Celente Speaks Of Civil Unrest S&P Downgrades Greece To Selective …

The latest spike: St. Louis Fed Adjusted Monetary Base (BASE). With massive monetization still underway, the key question is :at what point will come the transition from deflation to mass inflation? I suspect fairly soon… ‘Plan for an economic 9/11’: Analysts warn Americans to buy guns and gold, predicting market crash and street riots within a year Home prices fell in December in most US cities. Survey: Prices fell in 18 of 20 US cities in final months of 2011, prices back to 2002. (Thanks to C.D.V. for the link.) R.C. sent this: S&P declares Greek ‘selective default’ after bailout …