Category: Economics & Investing

Chris M. suggested this article: The Shadow Superpower–Forget China: the $10 trillion global black market is the world’s fastest growing economy — and its future. Reader A.N. sent this: US wealth gap between young and old is widest ever Also from A.N.: 7-in-10 Blame Economy for Hiring Freeze John R. liked this one: The Municipal Bond Market Is Imploding Items from The Economatrix: Greece’s Prime Minister Survives Confidence Vote “Gigantic Bank Run” Coming, Says Nobel Prize Winner Fed-up Consumers Planning for “Bank Transfer Day” Banks Closed In Nebraska, Utah; Total 2011 Failures 87

Some Words of Advice From Kyle Bass (Guns, Gold, and Nickels–He is definitely our kinda guy.) Charles Hugh Smith chimes in, with guest post over at Zero Hedge: The Collapse Of Our Corrupt, Predatory, Pathological Financial System Is Necessary And Positive. (Thanks to L.M.W. for the link.) Super Committee Can Keep the Change: Dollar Coin Proposal Lacks Momentum Items from The Economatrix: German Economists On Greek Referendum:  “The Euro Zone Could Face Ruin” Federal Reserve Lowers Outlook for US Growth BofA Forecloses on Home Destroyed By Ike

Liquidity crunch, ahead? CME increases margin call; markets will be under pressure. (Thanks to C.D.V. for the link.) Greek Tragedy, Act II: Der Bild reports that some businesses are getting ready for reintroduction of the Greek Drachma. TUI rechnet schon in Drachmen: PLAN B WIRD AUCH IM FINANZMINISTERIUM BEREITS BESPROCHEN. For non-German readers, here is a rudimentary translation. This might not be “Das Ende der Welt, wie wir sie kennen.” But it might be The End of the Euro As We Know It.(Thanks to S.B. in Holland for the link.) Michael Z. Williamson (SurvivalBlog’s Editor at Large) recommended this over …

SurvivalBlog’s G.G. flagged this: Many States Already Worried About Running Short The descent into the abyss continues: Unable to pay bill, Michigan city turns off lights K.A.F. sent this: Guatemala’s trash ‘miners’ risk lives to find gold Charley S. forwarded this link: ‘He has a right to speak,’ said the cop to the banker Items from The Economatrix: Economy Picks Up But Hiring Outlook Stays Cloudy Retailers Report Solid Gains In October Greece In Turmoil Over Debt Plan, Markets In Limbo Oil Prices Rise On More Encouraging Economic News

SurvivalBlog’s G.G. flagged this: Yes, There Will Be a Student Loan Bailout M.A. sent this from over at SHTFPlan: They’re Trying to Fool You Into Believing That Inflation Is Not a Problem S.B. recommended this by Charles Hugh Smith: Democracy Is Tolerated Until It Threatens Global Markets. Yishai sent this: Hoard Peanut Butter as Prices Soar: Four Stocks to Benefit Items from The Economatrix: Central Banks Top Up Gold Reserves 19 Facts About the Deindustrialization of America that Will Make You Weep Unemployment and Crime

Day of reckoning for shadow inventory and distressed properties – 40 percent of properties in foreclosure have not made a payment in two years or more. Bill Fleckenstein interviewed about gold and the European credit debacle. (Thanks to J. McC. for the link.) Items from The Economatrix: Trucks, SUVs Power Strong Auto Sales in October No Major Fed Moves Expected Despite Europe Fears Factory Activity Slows as Economy Stays Sluggish Bill Whittle has some biting commentary on the “rich” and “poor” in America.

G.G. sent this for the I-Told-You-So Department: Home prices heading for triple-dip. Mark you calendar for June, 2022. That might be a reasonable date for price recovery, barring a mass currency inflation. But even that of course wouldn’t be a genuine market recovery, when gauged in real home values (adjusted for inflation). Don’t miss this great piece by Thomas L. Friedman: Did You Hear the One About the Bankers? (Thank to Jed F. for the link.) Ben S. sent this: The Inflation Shock and the Fall Melt-Up of 2011 Despite Debt Deal, Europe May Slide into Recession John R. sent …

The New American magazine cites my novel “Patriots” in a recent article on hyperinflation. More derivatives news: Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan. (Thanks to BigTex for the link.) Bob S. spotted this: USDA economic research say CPI of food price to rise 3.5% – 4% in 2011. Reader AmEx (American Expatriate) was the first of several readers to send this: Three Men Arrested In Nickel Theft At Local Steel Plant Meanwhile, some sad news from England: Thieves desecrating memorials to our war heroes every other day as metal plaques and statues are being sold for …

Ol’ Remus has posted some great observations on the coming hyperinflation Items from The Economatrix: Economy Grew 2.5% in Q3 as Consumers Rebound Rate On 30-year Fixed Mortgage Falls to 4.10% But meanwhile, we read: Contracts to Buy Homes Fell 4.6% in September. (Let’s face it: The real estate market will be broken for at least 10 years.) BNY Mellon Slaps Fee on Some Depositors The Great Depression 80 Years Later:  Same Culprits, Same Rage Eurozone “Collapsed,” Euro to Vanish FinansInvest CEO Says Gold, Silver and Fraudulent Investor Traps

Wayne G. sent this: Consumer Confidence Tumbles, Home Prices Stagnate Another flagged by veteran SurvivalBlog contributior G.G: All American Bank Fails; 2011 Tally at 85 RBS found this one: Americans ‘Hooked on Government’ as Record Number Get Benefits (Businessweek) Items from The Economatrix: Poll:  Many Boomers Staying Put Amid Bad Economy New-home Sales Tick Up as Builders Slash Prices Savers Protect Your Deposits from Bankrupting Banks and Quantitative Inflation Tomorrow’s EU Summit Meeting Cancelled; Gold and Silver Skyrocket on News We Are Saved Again By More Paper Injection / Gold And Silver Rebound To Score Higher Levels GDP Grew 2.5%, …

G.G. sent a piece by Andy Lees: Quantitative Easing!!! Dollar Decline in Full Swing in Risk-On Environment Data suggests inflation on the way. (Thanks to B.B. for the link.) Also from G.G.: Inflation Concerns Go Beyond Rise in Consumer Price Index File under “Fragile Global Supply Chain”: Thai Floods Reach Toyota Plants in Indiana, Kentucky, West Virginia and Ontario Items from The Economatrix: Weiss Final Warning to All Investors: Get All or Most of Your Money Out of Danger Immediately… Silver Waits To Begin Break-out Gold Market Update Inflation Up Globally Claims For Unemployment Aid Dip But Remain High Stocks Turn …

Charley S. pointed out this interesting essay: Don’t Blink! The Hazards of Confidence. And a related article, courtesy of Patrick S.: Can a monkey pick a hedge fund? Merkel wants ‘permanent’ supervision of Greece, warns of war. (Thanks to Pierre M. for the link.) John S. flagged this: Yuan Gold Contracts a Step toward Reserve Currency ‘Unknown territory’ for Europe if summit fails: France. ( A hat tip to John R. for the link.) Items from The Economatrix: FedEx Sees E-Commerce Driving Record Holiday Volume Just In Time For The Holidays: A Bad Economic Mood Gas Price Could Slide Another …

Commentary from George Maniere: Silver Waits to Begin Breakout G.G. sent this: Expect more QE from the Bank of England Also from G.G.: US States are Facing Total Debt of Over $4 Trillion. Get ready for higher taxes and creative “fees”. And from B.B.: Rustling costs ranchers millions in poor economy Erik B. mentioned that Glenn Beck has been trumpeting the derivatives time bomb. (Much like I have, since the early days of SurvivalBlog.) Items from The Economatrix: Stocks Mixed On Stronger Earnings, Europe Reports Help for Underwater Homeowners Unveiled Merrill Lynch Warns of Another US Debt Downgrade Wal-Mart Offers …