Category: Economics & Investing

U.K. stores sell out of reindeer meat. (Thanks to loyal contributor F.G. for the link.) Reader F.B. suggested: The Coming Collapse of Bitcoin? Realtors: We Overcounted Home Sales for Five Years Most American’s Still Have No Idea How Bad the U.S. Economy Is Items from The Economatrix: Why All Signs Point to Chaos Dow Dumps 100 Points; BofA Dips Below $5 Stocks Knocked Down By Weak Banks, Europe Uncertainty US Stock Losses Double on EU Statement

AmEx (American Expat) sent us this: The Silver Rush at MF Global G.G. sent this: Missing $4,155? It Went Into Your Gas Tank This Year   Items from The Economatrix: Global Economic Crisis:  The US an Insolvent and Ungovernable Country IMF Warns that World Risks Sliding Into a “1930’s-Style Slump” Celente’s Trends Prove Accurate; What Will 2012 Bring? Price of Oil to Remain High as OPEC Limits World Production at Oil Price

This may be our last “big dip” buying opportunity for silver: Gold to drop in Q1, far from retesting record high: Reuters poll Thief Injured Attempting to Steal Copper Wire From School. Solar Power becomes cheaper than diesel generators in India. (Thanks to F.J. for the link.) Items from The Economatrix: Pathogenesis of Central Bank Ruin 12 Bullish Factors Driving Gold to $2,000 and Higher Despite Recent Setback Public Confidence in California Falls as Economy Improves The Sacrifices I Made to Survive Sharp Drop in Shopping Since Thanksgiving Weekend Holiday Sales Up, But Returns May Set Record Illinois Debtors Thrown …

It is time to cue up “O Fortuna” from Carl Orff’s Carmina Burana: Fitch says comprehensive solution to eurozone crisis is ‘beyond reach’ – statement in full. (Thanks to Jim McC. for the link.) J.B. sent a new article about Alabama Rate Increases: “These people are going to end up rioting about this.” Norwegian city to adopt The Vilnius Solution to panhandling? ‘Fine people who give beggars money’. Items from The Economatrix: Is The Gold Bull Really Dead? Massive Downward Revisions Imminent:  National Association Of Realtors Miscounted Millions Of Home Sales Over Last Five Years. Europe’s Crisis:  Goldman Warns of …

I warned you that this was coming, folks: Legislation Seeks Steel Cents and Nickels. Stock up on nickels, before the composition changes and you have to start sorting coins! IMF warns that world risks sliding into a 1930s-style slump. (Thanks to C.W. for the link.) G.G. flagged this: China trims holdings of US Treasury debt. Karl G. sent this headline: Texas Drought Takes Cow Numbers Down By 600,000. Items from The Economatrix: For Europe, the Only Way Out is to Break Up The Coming Collapse Might Be Your Final Chance to Legally Buy Physical Gold this Decade Existing Home Sales …

J.B.G. suggested this: China’s epic hangover begins. Also from J.B.G.: Eurozone crisis poses military risk, warns defence chief General Sir David Richards And yet another: Cancer patients have operations cancelled after thieves steal copper cable from hospital Items from The Economatrix: Top US General Fears Euro Unrest Real Unemployment at 11% France Fears Credit Rating Cut Despite Bid to Ease Eurozone Crisis Long-term Jobless Eye Bleak Future as Benefits End Bank Run in Latvia

Dear Editor: Perusing your wonderfully informative blog and static pages I stumbled across a bit of inaccurate information I thought you may be interested in correcting: Silver dollar bags ($1,000 face value) contain approximately 765 ounces of silver 90% .50/.25/.10 bags ($1000 face) are calculated at 715 ounces of silver. The “industry standard” is 715 ounces. Respectfully, – Shawn JWR Replies: To the best of my knowledge, what I posted was accurate. Because of a long-standing congressional mandate, the silver composition of Silver Dollars has always been higher (per dollar increment) than that used in dimes, quarters and half-dollars.  Oddly, …

Courtesy of David H. comes a link to a fascinating interview: Nomi Prins on U.S. Banks’ Derivative Exposure. The counterparty risk in the opaque OTC derivatives market is potentially huge! Reader Tom M. sent this prediction of social disorder in Europe and beyond: Why all signs point to chaos They’ve learned how to work the system: 30 Major U.S. Companies Spent More on Lobbying than Taxes Damon S. sent this: Silver price: Hey Silver Bugs, You Cryin’ Yet? [JWR’s Comment: I’m using this dip as the opportunity to add a bit more silver to my silver stash in JASBORR.] Items …

If you’ve been waiting for a dip to buy some more precious metals, this is it. (As usual, I recommend buying silver rather than gold. And since platinum is at an odd point in its history where it is worth less than gold, I’d recommend buying a few Platinum American Eagles, Credit Suisse 1 Oz. Platinum Bars, Platinum Australian Platypus coins, or Platinum Nobles, if you can find any. ) Peter Schiff: How Are You Going To Survive When Gold Is Money Again? Yet another advantage of The American Redoubt, to consider: Map of Electricity bills by state. This dovetails …

Tweet sparks 10,000-strong rush on Latvian bank after rumours it was in financial crisis. (Thanks to J.B.G. for the link.) Pinning down the fine print at E Trade, Scottrade, and Fidelity on hypothecation policies Gerald Celente: Predicts An Economic 9/11 For The United States Economy The Daily Bell asks: BIS Calls for Hyperinflationary Depression? Karl Denninger: Wheeee! We Go Down The Bowl Last! Items from The Economatrix: Back-door Bank Runs In Europe Have Started Is The Eurozone Banking System About To Collapse Signs of Disintegration Jim Sinclair On Gold And The World Financial System

Gerald B. recommended: The Engineered Euro Crash – William Engdahl on GRTV. Engdahl explains how the Greek government concealed the extent of their debt by using exotic derivatives provided by Goldman Sachs, and how Greece was later slammed by George Soros and “the Big Boys”. JWR Adds A Bit of Humor: But don’t blame Goldman Sachs, since any Greek will tell you that derivatives were invented in Greece. (After all, everything was a Greek invention.) Zero Hedge reports another Latvian bank run. Gold Model Forecasts $4,380 Gold Price. [JWR’s Comment: I’m generally anti-chartist, but this provides some food for thought.] …

Jim Rogers: “The U.S. Federal Reserve Is Lying To Us” By way of Tamara’s View From The Porch blog: Like it or not, the euro is doomed. Tam’s comment: “Formerly the province of goldbugs, nationalists, and other assorted doomsayers, predictions of the Euro’s imminent demise are going mainstream. This is the inevitable result of letting Arthur Bach and Ebenezer Scrooge share a joint checking account.” An interesting 20 minute interview with Jim Sinclair. He discusses: increasing precious metals market turbulence is looming, MF Global, a key change in bankruptcy laws (that benefits derivatives holders), hypothecation, and a fundamental shift in …

Dear Mr. Rawles, I have read your five page article Mass Inflation Ahead – – Save Your Nickels.  You stated that: “…should Uncle Sam decide to devaluate our present fiat currency, holders of piles of nickels will typically make them unexpected beneficiaries of a 10X, 100X or even 1,000X gain of the purchasing power of their coins.”  You went further to say that “Governments just assume that most citizens just have a couple of pocketfuls of coins at any given time.  So if a currency swap were to happen while you are sitting on a big pile of nickels, then …