Category: Economics & Investing

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 …

Chris D. recommended this YouTube mini-documentary: Confiscation and Inflation Reader Kevin K. liked this piece: The $U.S. Dollar Centric Derivatives Complex: Progenitor of Parasitic, Ponzi Price-Fixing Twenty Two Signs Pointing to a Devastating Global Recession   All You Need to Know About Iran, $200 Oil, and $6.00 Gas Prices Items from The Economatrix: The Worst Economic Recovery Since The Great Depression Nearly 1 Million Workers Vanish Under Obama Home Seizures May Jump 25% this Year as US Foreclosures Resume Apocalypse How?  Dire 2012 Forecasts Pessimistic Prognosticators

Peter Schiff: U.S. is In Worse Shape Than Europe An interesting podcast: Preparing for the Coming Dollar Meltdown with Gold, Silver, Agriculture, and Energy Huge Financial Bombs Just Got Dropped All Over Europe Items from The Economatrix: Market Resiliency Shines Through French Rating Cut Oil Prices Below $99 On New Europe Debt Concerns Europe’s $39 Trillion Pension Risk Grows as Economy Falters Economic Collapse — Why It Won’t Be Stopped

A curious financial situation has developed in Japan. Largely overlooked in the American press, Japan now has built up a staggering national debt that is approaching 300% of their GDP. This debt exists at the same time that there is tremendous alarm in the global media over Greece’s debt, that is only about 130% of GDP. (And lest we feel smug about those spend thrift Greeks, our own debt is now more than 100% of our GDP, and unlike Japan, we have a trade deficit rather than a trade surplus.) Why has Japan’s monstrous debt been ignored by the press? …

Debra P. sent a link to a news clip where a CNN reporter catches on: Hedge fund manager hoards nickels. (Although she muddies the waters by talking about numismatic value and base metal value in the same breath.) And speaking of nickel, this piece comes from Canada: Steel yourself for new non-nickel loonies, (Thanks to C.L. for the link.) A Colorado television station interviewed a “one man think tank”: Melting Gold Coins To Reduce National Debt–Man Says America’s Debt Would Be Erased If Government Would Melt Gold Coins Into Bars, Sell Them To Other Countries. Not only is he severely …

Several readers sent this: S&P Cuts Credit Ratings for Nine Euro Zone Nations J.J.H. recommended a satirical short film comparing the National Debt to the finances of a family. More monetization ahead: Fed to Weigh Further Easing Amid Doubts About Recovery. The government is now fully addicted to artificial money creation. Items from The Economatrix: There Goes The Neighborhood:  Cleveland To Demolish 20,000 More Foreclosed, Looted Homes Poverty In America Getting Worse China’s Collapse “Will Bring Economic Crisis to Climax in 2012”

R.C. sent this troubling bit of news: America Again Drops in Global Ranking of Economic Freedom Here is an article penned by Pat Buchanan: “Last May, Ron Paul filed his financial disclosure form, and The Wall Street Journal enlisted financial analyst William Bernstein to scrutinize his investments. The article includes this: “Paul’s portfolio isn’t merely different,” said an astonished Journal, “it’s shockingly different.” Twenty-one percent of his $2.4 to $5.5 million was in real estate, 14 percent in cash. He owns no bonds. Only 0.1 percent is invested in stocks, and Paul bought these “short,” betting the price will plunge. …

Reader RBS mentioned this great piece in Coin World: Strangeness in the 1960s–1964, 1965 like day and night SurvivalBlog’s own Pat Cascio sent this: Hungary Folds, Ready To Change Its Laws To Get European Bailout Money A reader sent this: Food inflation done quietly: Same store, same shelf, same price. Smaller package. 1.2 Billion Indians signing life away for biometric ID cards   Items from The Economatrix: Fed Officials Signal More Action May Be Needed. (Warm up that helicopter and monetize, Ben!) Crude Nears $103 $9 Gallon Gasoline Will Crash World Economies if WWIII Starts