Category: Economics & Investing

AmEx (American Expat) suggested an essay from Forbes in which the author makes some good points about going back to the gold standard: Gingrich, The Gold Standard, And The Florida Primary The great deleveraging event – household debt has fallen 4 percent since recession hit. Household debt has fallen dramatically from the peak when household debt aligned itself with annual GDP. G.G. flagged this: Tax Evaders Renounce U.S. Citizenship Baltic Dry Plunges 42% More Than Seasonal Norm To Start The Year. Items from The Economatrix: Greek Bond Talks Break Down, But Markets Shrug It Off Why Isn’t Illinois a Bigger …

J. McC. suggested a piece over at the Of Two Minds blog. From Kevin: $100 Bill: The Fed Has a $110 Billion Problem with New Benjamins Items from The Economatrix: Has Portugal’s Debt Default Clock Begun To Tick? New Normal on Wall Street: Smaller and Restrained Payroll Tax Cuts Raise Worries About Social Security’s Future Funding Japan Logs First Trade Deficit Since 1980 New Prediction — Economic Collapse:  First To Europe Then To U.S. And World 11 “Stunning Revelations” From a Confidential Economics Memo To Obama

Reader Dale C. sent this example of urban myopia: Yahoo rates College Majors That Are Useless. [JWR’s Comments: These geniuses seem to have concluded that there is no need to study how to raise food, when you can just buy it from a supermarket. (That’s where they think meat comes from: “You know from those plastic-wrapped trays.”) The urban elitist view seems to be that any venture where one is at risk of getting their hands dirty is “useless” or somehow offensive. The their minds, farming, ranching, and mining are out, but high finance, LBOs, and derivatives are in. But …

Jason G. suggested this XtraNormal You Tube clip: Confiscation Through Inflation. Best-selling investing author, former Marine (and prepper) Richard Kiyosaki talks some gloom and doom. C.D.V. sent this: Gold for Oil: India and Iran Ditch Dollar. (Does this sound familiar?) The Great Economic Storm: We Are Living In The Greatest Debt Bubble The World Has Ever Seen Items from The Economatrix: Existing Home Sales Hit 11-Month High In December One Million Homeowners May Get Mortgage Writedowns Refinery Shutdown Could Push Gas Prices To $4 Sell Treasuries, Buy Gold

Ted B. sent this: European Union agrees on Iran oil embargo The Economist reports on Romania: Anger management: The government struggles to contain a growing protest movement Courtesy of Rex N. comes this link: Danger Ahead! Says the Bank of Canada Over at KITCO: Comex Gold Ends Higher On Bullish “Outside Markets,” Positive Technicals Items from The Economatrix: Gold Bottom Targets Trend to $4,000 IMF in Need For $1 Trillion / The Private Greek Bond Fiasco The Debt Supercycle Reaches its Final Chapter Jim Sinclair:  There Will be a Run on Gold Stored in the US On Banks Refusing Cash …

A credit crunch is looming! European banks prepare for worst, hoard cash. (A hat tip to Sue C. for the link.) Steve F. sent this news, which represents one more reason to stockpile nickels at home: Nickel will outperform Gold in next 12 months: Deutsche Bank What To Expect: QE3, $2,200 Gold, and The Trillion Dollar Bazooka Kinsley: About Rising Inflation, Please Remain Worried. (Thanks to G.G. for the link.) Items from The Economatrix: Silver and the Gold Standard Government Math Hides True Unemployment Hungary May Be First To Default Warning Signs That We Should Prepare For The Worst

Jim T. suggested a good piece by Thorsten Polleit: How Deflationary Forces Will Be Turned into Inflation AmEx (American Expat) sent us this: Local currencies: ‘In the U.S. we don’t trust’ The FDIC Friday Follies have resumed: Banks closed in Georgia, Florida, Pennsylvania; first failures of 2012 A reader in Manitoba wrote ask me about possible trigger dates for a financial panic. I told her that a key date is March 15, 2012. That is the day that the Greek government must either cough up the cash, or admit default. Fitch seems to consider Greek default almost a certainty. Items …

AmEx (American Expat) spotted this at Arutz Sheva: ‘Dr. Doom’ Investor: Prepare for World III G.B. mentioned this podcast: McAlvany Interview with John Williams of Shadow Statistics. Williams warns of hyperinflation, saying: “The Federal government will print money until it fails.” Reader Dean G. recommended a great post from Tim Price, at Sovereign Man: The Final Countdown   Items from The Economatrix: Greek Default Imminent Iran Oil Ban Means Economic Suicide for Europe Correction In Gold is Over and on Way to $4,500 Recovery at Risk as Americans Raid Savings

Debasement of 5 Pence and 10 Pence coins in England is causing problems: New coins won’t work in parking meters and vending machines. (Thanks to G.G. for the link.) B.B. sent this charming news: Treasury dips into pension funds to avoid debt: “The Treasury on Tuesday started dipping into federal pension funds in order to give the Obama administration more credit to pay government bills.” China Brings US Treasury Holdings To One Year Low, Russia Cuts Treasury Exposure By 50% In One Year. (Thanks to S.M. for the link.) Craig D. flagged this: World Bank warns on risk of global …

Sir, Thanks very much for maintaining this terrific blog. I try to read it every day and frequently find useful information that assists in my preparations. I found particularly useful D.T.R.’s recent article, “Post Collapse Barter: The Rest of the Story,” which I think contained a more realistic description of the post-collapse economy than perhaps many preppers have in mind. I agree with D.T.R. that the majority of non-preppers are unlikely to have anything valuable to trade for the salt, iodine, alcohol and other items that preppers are setting aside for barter. Furthermore, the needs of non-preppers can be predicted …

Thanks to David D. comes some analysis of how speculators can move markets: How Global Investors Make Money Out of Hunger. [JWR’s Comment: Some of the surge in farm commodities prices can be attributed to hedging on anticipated currency value declines and higher fuel and fertilizer costs rather than the result of–or an expectation of–lower crop production. In essence, nearly all tangibles are viable hedges when the global currencies are engaged in a race to the bottom. Steve W. sent some interesting news: Mint begins trial strikes in composition tests. The good news is that the trials strikes are part …