Category: Economics & Investing

Don’t miss this interview with Jim Sinclair: The Impending Undeclared Default of Five Major US Banks. Sinclair exposes an upcoming decision by the International Swaps and Derivatives Association (ISDA). He expects some very short-cropped haircuts on CDS derivatives. In this land of smoke and mirrors, it all comes down to terminology. What is a severe credit event euphemistically called, other than default? Sinclair anticipates a writeoff down to thirty cents on the dollar for Greek debt! A collapse in the Euro is coming .Massive bailouts are coming. Some very large banks may go under, or more likely they will be …

20 Signs That Europe Is Plunging Into A Full-Blown Economic Depression D.D. suggested this one: The Coming Paradigm Shift in Silver   Richard Russell, Joseph Granville, & Baltic Dry Index Warnings = Get Out Of Stocks! Sven sent this: Why Are the Chinese Buying Record Quantities of Gold? Congressional Budget Office reports another $1 trillion deficit. (Thanks to B.B. for the link.)                                       Items from The Economatrix: Wall Street Cuts Losses On Late Buying US Grows 2.8% In Q4, But Not Enough To Keep …

F.G. sent this link, that bears repeating: The U.S. Debt Visualized Don’t Get Audited! The IRS’s Dirty Dozen Red Flags (Kiplinger) RBS flagged this: Lawmaker targets coinage costs with bills backing steel. [JWR’s Comment: It is interesting how the congresscritters are trying to make debasing our coins look patriotic.] $140 Silver, Figures Don’t Lie Items from The Economatrix: The Art Of Extortion Now At The IMF You Won’t Believe Who Owes U.S. Billions Fed Is Running Out Of Tools To Boost Economic Growth

The latest from Willem Weytjens: Silver: Epic Reversal. I’m not a chartist believer, but this is captivating. Items from The Economatrix: Are Soros, IMF, & World Bank Trying To Scare The Living Daylights Out Of Us? Fed Says Benchmark Rate To Stay Low Until 2014. [JWR’s Comment: Higher interest rates would torpedo the ability to service the U.S. National Debt. Bernanke has his hands tied. And they will stay tied until the international community changes interest rates for him.] Housing Data Points To Slowdown In Sales Crude Price Rises On Iran Threat To Stop Oil Sales Bernanke Says Fed Pondering …

The Massive Debt Bomb: $7,600,000,000,000 Dollars Of Debt Must Be Rolled Over In 2012 G.G. sent this: John Williams – Accelerating Great Collapse & Hyperinflation Several readers sent this from Business Insider: 2011 GDP: 1.7% Kevin K, sent the link to this interesting piece by Jim Willie: Tail Events, Isolation, New Normal Items from The Economatrix: Fitch Goes On A Rampage, Cuts Spain, Italy, Belgium, Cyprus, And Slovenia Merkel Casts Doubts On Saving Greece From Meltdown Aging Japan Faces “Chronic” Trade Deficit After Fukushima IMF Slashes Global Growth Forecasts Soros:  There Will Be Riots In The Streets Of America Davos:  …

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