Category: Economics & Investing

John Stossel: We are on the road to bankruptcy As The World Revolving Door Turns: Former Obama official’s revolving door leads to hedge-fund defense project Reader Tracy A. suggested this commentary from Mish Shedlock: Obama Wants Cheaper Pennies and Nickels; Why Not Do Away With Both [JWR’s Comment: My solution would be to 1.) Balance the Federal budget and 2.) Revalue the U.S. Dollar, knocking off two zeros, and 3.) Begin minting real silver coinage again. But sadly, that probably won’t happen in my lifetime.] How Could Silver Short Sellers Cover Their Positions? (Thanks to Diana for the link.) Tyler …

G.G. sent us this: The Upside of Government Default Reader G.P. sent this from The Slog: A timetable for Greek Default? Courtesy of Michael W.: Dollar Gets No Respect Despite Economic Gains. JWR’s Comment: Genuine money is made of silver or gold. And honest paper money substitutes are redeemable on demand for silver or gold coinage. Anything else is trash. Thus, all of the world’s fiat paper currencies are trash. Some of them are just trashier than others. I would characterize the U.S. Federal Reserve Note as like an aging, gap-toothed syphilitic harlot that is dressed in shabby green dress …

This set of charts says it all: The day of reckoning for global total debt – total credit market debt up from $28 trillion in 2001 to $53 trillion in 2012. Bob L. sent this: Richard Russell – A Bitter Pill to Swallow, Austerity or Inflation Items from The Economatrix: True UK Jobless “6.3 Million” Jim Sinclair: The Lonely Road We Take Together “Poor America” – How The Broke Are Surviving Mortgage Settlement Will Plunge Real Estate Values

Adam B. sent: An agency-by-agency guide to Obama’s budget. JWR’s Comment: That doesn’t look like much “deficit slashing”, to me! By way of Ol’ Remus at The Woodpile Report comes a link to some food for thought by Charles Hugh Smith: Why Is Gasoline Consumption Tanking? Why I’m Taking Gold Double-Eagles On My Next Trip To Utah Over at The Daily Bell: Now EU Kicking Spain Out of EU? Items from The Economatrix: There’s Talk of an Exit – But Default Would Have Catastrophic Consequences Japanese Economy Shrank in Fourth Quarter The Economy Relies on the Suspension of Disbelief Greece …

It is coming soon, folks! Obama: Let’s Save Money by Making Coins with Cheaper Metals G.G. flagged this: On the Dole: A fifth of all Americans Moody’s Cuts European Sovereigns Feds shut down Amish farm for selling fresh milk. (Thanks to Michael W. for the link.) Items from The Economatrix: Tail Events, Isolation, New Normal Oil Falls Toward $100 Ahead of US Supply Data Greece Faces Further Obstacles in Bailout Deal US Market Shakes Off Greek Worries and Advances

K.P. sent this infographic article: All The World’s Gold Peak Everything — Why Everything Costs More. (Thanks to Michael W. for the link.) Diana sent us this: Warren Buffett Trashes Gold, But What About Silver? Items from The Economatrix: Greek Death Spiral Accelerates Trade Deficit Widens To $48.8 Billion In December S&P Lowers Ratings On 34 Italian Banks Gold Drops As Greece Delay Lifts Dollar

John Williams of Shadow Stats says: “This is end of the world type stuff”. He recommends stocking up on barter items. A bunch of links, all courtesy of Kevin S.: Presenting The (Only) Four Outcomes To The Global Public Debt Crisis On The Failure Of Inflation Targeting, The Hubris Of Central Planning, The “Lost Pilot” Effect, And Economist Idiocy A National Debt Of $14 Trillion? Try $211 Trillion US Closes 2011 With Record $15.22 Trillion In Debt, Officially At 100.3% Debt/GDP, $14 Billion From Breaching Debt Ceiling Items from The Economatrix: Why Is Global Shipping Slowing Down So Dramatically? The …

G.G. flagged this: Obama’s Budget Puts 2012 Deficit at $1.33 Trillion. Courtesy of Kevin S.: Straight Talk with Tyler Durden: The U.S. Is Free-Falling Into Bankruptcy Items from The Economatrix: Bad Home Loans Top $72 Billion In “Colossal Failure” Mortgage Giants To Pay $25 Billion In Foreclosure Settlement S&P Threatens US With Another Downgrade Possible Next Debt Bomb:  Student Debt Pushing More People Towards Bankruptcy

Washington Footing the $1.6 Billion Cell Phone Bill for Millions of Low Income Americans Chris Martenson: Why Our Currency Will Fail If The Euro Breaks Up — Scenarios For Greece, PIIGS And Total Collapse. (Thanks to F.B. for the link.) Reader Andrew M. mentioned the latest edition of KGS Night Watch newsletter that discusses possible economic collapse in Iran Items from The Economatrix: G.G. flagged an interesting article from the blogosphere that originated in Switzerland: On Banknotes. B.B. sent this: Food Prices Rose Most in 11 Months, May Climb in February Bernanke: Recovery Depends On Consumer Spending 10 Things Every …

More Quantitative Easing monetization, in England: BoE Injects $79.3 Billion More to Support Recovery Yes, debasement is coming for nickels: U.S. Mint exploring alternative metal options. Stockpile some nickels at face value now, before the composition change! (If you wait, then you will have to laboriously sort coins.) An eye-opening YouTube video on the housing crash: Folsom California On The Brink Jim Rickards: “Chaos” To Dollar Endgame “Most Likely” Items from The Economatrix: Greek Talks Falter / Sprott Offering Memorandum / Jobs Report Analysis Bernanke:  Job Market Remains Weak Despite Gains Consumer Borrowing Rose $19.3 Billion in December Dow Approaches …

For the “I Told You So” file: Romanian government collapses amid public outrage over austerity. (Thanks to B.B. for the link.) California, New York might sign on to MERS settlement Dawn S. suggested a piece with a fascinating animated stock volatility chart over at Zero Hedge: Presenting The “Rise Of The HFT Machine” – Visual Confirmation How SkyNet Broke The Stock Market On US Downgrade Day Pennies: Where are they all going? (A hat tip to Diana S. for the link.) G.G. suggested this National Review article on commercial real estate: Armageddon at the Strip Mall Items from The Economatrix: …

Gold is the Gut Reaction, Silver is the Smart Decision U.S. States Prepare For Hyperinflation Reader Sue C. suggested this piece by Rick Moran: Greece on the brink. No, really – this time for sure Items from The Economatrix: Oil Below $97 as Traders Eye Greek Debt Talks The Financial Crisis of 2008 Was Just the Warm-up Act for the Economic Horror Show That is Coming Markets, Murmurations, and Machines Gold Rises to Two-Month High, Eyes US Payrolls