Category: Economics & Investing

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 …

John R. sent this: US Debt/GDP Hits Post WW2 High 99.5% Following $55 Billion Overnight Debt Increase: Total Debt Now Over $15.1 Trillion Judgment day for housing shadow inventory already here – Foreclosure inventories reach an all-time high. FHA and GSE loans only game in town. G.G. flagged this: Contagion Catastrophe: Europe is closer than you think to bringing down the American—and, therefore, the global—economy. Canadian Eric Sprott Makes His Move of the Comex, Physical to Break from Paper Items from The Economatrix: Gold May Hit $3,000 if US Devalues Dollar American Airlines Files Bankruptcy Two Possible Outcomes For The …

Be sure to listen to this! Jim Pulplava interviews Ann Barnhardt about institutional wickedness by the Chicago Mercantile Exchange and MF Global: The Entire Futures/Options Market Has Been Destroyed by the MF Global Collapse. Barnhardt predicts systemic collapse and hence the need to shift into tangibles including long guns, ammunition, fuel, and precious metals. (Thanks to David W. for the link.) Sometimes “Just In Time” inventory control has a nasty bite: Residents in Alaska city could get $9-a-gallon gas. (BTW, this adds credence to my advice to not choose Alaska as a retreat locale.) Central Banks Augment Currency Swap Capabilities. …

John R. recommended this: Perpetual QE Without the Billboard (Jim Willie) K.T. sent a link to a video of Chris Martenson’s presentation at the Gold & Silver Meeting in Madrid. This is a great lecture and hence a hour well-spent! A key question: Are you living in a state that is a energy exporter or an energy importer? (Think: Geothermal, coal, natural gas, and oil.) Plan ahead, and relocate your family strategically. G.P. suggested: IMF rescue of Italy will spark global uprising Michael A. alerted me to this: US gives money to Eurozone. (And much of it will come out …

MF Global: Proof that the U.S. government is not able or willing to protect investors. (Thanks to Jeff H. for the link.) Karl Smith: The Euro-Crisis is Much Worse Than It Looks Just as if they were cranking up the printing presses: Top central banks move to avoid global liquidity crunch. Meanwhile, overseas: China cuts reserve ratio in move to inject cash. (Thanks to K.A.F. for the link.) Harrisburg: a city at war with itself. (The first major U.S. city to declare bankruptcy. The first of many, I fear.) Items from The Economatrix: Prepare For Riots In Euro Collapse, Foreign …

B.B. mentioned this: Jim Cramer: ‘We Are in DEFCON 3, Two Stages Away from a Financial Collapse So Huge …’ Some charming news, by way of SurvivalBlog’s G.G.: Bond Dealers See Fed Buying $545 Billion of Home-Loan Debt in Third Easing Also from G.G.: John Williams: Hyperinflation Warning, Preserve Value with Gold And another: 10 reasons the crisis isn’t over Yet another: States face bleak economic forecast, report says Items from The Economatrix: Stocks Soar On Big Shopping Weekend, Europe Sales Of New Homes Up In October, But Prices Fall Oil Prices Rise On Holiday Sales, Europe Hopes

John R. suggested a piece by Paul Craig Roberts: Bankers have seized Europe: Goldman Sachs Has Taken Over Euro Meltdown: This One European Country Can Bring Down The Entire EU Courtesy of J.B.G.: Italy Is Closer To Collapse Than Anyone Realized, And So Is The World Also from J.B.G.: Should the Fed save Europe from disaster? Items from The Economatrix: Occupy Wall Street’s Latest Plan: Refuse To Repay Student Debt Hungary’s Debt Downgraded By Moody’s To Junk Europe Bond Yields To Keep Stocks Spellbound Why 2011 May Be A Jolly Year For Holiday Retailers

J.B.G. suggested this: Pictures From A Latvian Bank Run As MF Global Commingling Comes To Town Also from J.B.G.: Deutsche Bank: If Merkel Doesn’t Budge, ‘Our Investment Advice Is To Dig A Hole In The Ground And Hide’ Clive Maund: Gold To Profit From Economic Uncertainty From Wired: The Rise and Fall of Bitcoin Items from The Economatrix: Coming–Big Austerity Cuts 17 Quotes About The Coming Global Financial Collapse That Will Make Your Hair Stand Up Death of a Currency as Eurogeddon Approaches Update On US Banks And The Euro Area–Things Are Looking Grim

SurvivalBlog’s Editor At Large, Michael Z. Williamson sent this: Goldman Sachs predicts that U.S. will be world’s largest producer of oil in 2017 J. in Kabul sent this: Here You Go: It’s Over (by Karl Denninger.) Here is a brief quote: “Oh sure, there will be rallies and there will be selloffs. But there is no longer a market, there is no longer a thing to trade, and there is no longer a reason to believe that superior analysis will lead to profit or even safety.” Warning: Coinage debasement ahead! Steve Rothman says it costs more to make a penny …