Category: Economics & Investing

The Next Banking Crisis Starts Here The latest Calvin and Hobbes cartoon (August 30, 2011) sums up the prevailing attitude in modern-day America. (Thanks to P.D.K. for the link.) Chuck from The McAlvany Intelligence Advisor pointed me to a special report series, where CNBC belatedly wakes up about the bull market in gold. Items from The Economatrix: Irene Likely to Lead to Higher Insurance Premiums Euro Bailouts in Doubt as “Hysteria” Sweeps Germany Three Years After Lehman, a New Debt Crisis Looms Fear Sets In, Panic Begins, Ruin Perceived, Prepare for Gold $2100

Mr. Rawles: When making a quick run to the grocery store to take advantage of some sales, I was amazed at the rise in some of the prices.  The same can of salmon that I purchased for $1.00 in preparation for Y2K was on sale for $2.69 – a “savings” of 90 cents from the normal retail price.  The same bag of sugar that I purchased for about $1.29-1.59 was $4.69.  So, I went out on the Internet to see what has gone on.  Here are several charts I found on MongaBay.com that show the alarming rises in the price …

Over at Forex Crunch: Dark Clouds Over European Banks Euro bail-out in doubt as ‘hysteria’ sweeps Germany. (Thanks to J.B.G. for the link.) B.B. suggested this article: German minister warns of seven-year global recession David H. sent this: Commentary Lays Bare the Problems of Qualitative Easing…and The Banks K.A.F. liked a piece by Ron Paul, over at the Fox News site: Bernanke Is Out of Options to Save Economy G.G. sent this: More people having to delay retirement: The number of Britons forced to delay retirement into their late 60s and beyond has doubled over the past year as the …

R.B.S. spotted this: Big Changes Afoot at U.S. Mint? The articles begins: “The year 2013 might go down in the annals of numismatics as significant as 1933 when gold coinage was suspended or 1965, the year copper-nickel began to displace the former silver coinage.” Got your nickels yet? J.B.G. sent this: Market crash ‘could hit within weeks’, warn bankers Martin P. sent this: Economic Stabilization Fund. Items from The Economatrix: The Upside for Gold and Silver Will Knock Your Socks Off 3-2-1 Global Meltdown Do The Maths

We’ve been warned: the system is ready to blow Reuters reports: Home Depot, Walmart, grocers get boost from Irene. (Thanks to M.W. for the link.) Some wise folks are buying on the dip: Sudden Temporary Gold and Silver Price Drop; Retail Sales Soar. (A hat tip to R.B.S. for the link.) A whole bunch of news, courtesy of John R.: In An Unsustainable System, A Warning of Collapse (Bob Chapman) Panic & Anxiety Swirl a Storm (Jim Willie) Banks face $340 billion state-backed bond refi hole (Helene Durand)   Big Banks: Under-Capitalized, Overexposed, Opaque(Barry Ritholtz) “A Wolf In Sheep’s Clothing” …

G.G. sent this: New-home sales fall, 2011 could be worst year yet USA Becomes Food Stamp Nation G.G. flagged this: CBO: Federal deficit will hit $1.3 trillion SSG Tom mentioned: Forget stocks; buy food Items from The Economatrix: Int’l Oil Higher On Supply Concerns Higher Durable-Goods Orders Ease Economic Worries Japan Credit Rating Downgraded Over Deficit Few Think Bernanke Speech Will Signal Major Action

Reader Tom C. wrote to mention an inflation data point: He noticed that half gallon bottles of lamp oil selling at Wal-Mart just jumped from $4.97 to $5.97 in one week–about a 20 percent increase. Morgan Stanley borrowed the most in financial crisis. ($107.3 billion in one month, with no public disclosure!) Gil Morales and Chris Kacher QE3: Top 8 Reasons Gold Goes Higher. (Thanks to Steve H. for the link.) US Government Asset Seizures On The Rise. (A tip of the hat to Stephen M. for the link.) Over at Fierce Finance: Layoff misery on Wall Street just getting …

G.G. sent this: Marc Faber readies for hyperinflation, dollar’s demise and civil unrest Frequent content contributor John R. sent this: A banking system built on lies and deception–Hiding commercial real estate losses by laundering bad loans through the Federal Reserve. Trillions of dollars in bailouts were made while banks told the public all was well. Items from The Economatrix: Chinese Think Tank Implies America May Be Falsifying Its Accounting, Says US on Its Way to Default Gold Soars to Record Near $1,900 on Economic Woes $5,000 Gold, $200 Silver Predicted The Great Collapse Has Officially Begun Moody’s Downgrades Japan’s Debt …

Be prepared for more of the roller coaster rider in the precious metals markets. If spot gold closes over $1,950, we can expect the COMEX governors to slap the futures market with substantially higher margin requirements. This may cause a temporary sell-off that will be a great buying opportunity. (The manipulators can depress the futures market in the short term, but the physical market is so strong that the precious metals bull will eventually renew its charge in the long term.) It appears that the window of opportunity for stockpiling nickels will soon be closing: Mint awards firm contract to …

G.G. sent us this “must read” article: Wall Street Aristocracy Got $1.2 Trillion in Secret Fed Loans G.G. also flagged this item: Despite Economy, Ohio, U.S. Gun Sales Defy Gravity Also from G.G.: Social Security disability on verge of insolvency Loyal content contributor RBS sent this: Shoppers will see higher prices for back-to-school shopping, but stores aim to disguise them RBS sent this: The economic worries of a regular American consumer Will Hugo Chavez Touch Off an Epic Short Squeeze in Gold? Some interesting reading: Outlook: Gold, Stocks, Volatility, Euro & Bonds All US Mint Numismatic Gold Coin Sales Suspended. …

Getting ready for a wave of coal-plant shutdowns. (Thanks to KAF for the link.) Pierre M. suggested this: Trouble in Paradise Strength of Swiss Franc Roils Saint-Tropez and Other Cities Across Europe John R. kindly sent us a raft of links: The Root Causes of the Global Financial Crisis (Bob Chapman)   Bernanke’s last resort: Start dancing? (Paul R. La Monica)   Plosser calls Fed’s low rate pledge “inappropriate”     Europe’s banks could break us all Bill Fleckenstein The Bailout Isn’t Working Bank of America is the canary in the coal mine U.S. Treasury Hidden Trickery in Mortgage Backed Security Recoveries …

File under No Great Surprise Department: China May Stop Buying Treasurys as Growth Slows: Roach Reader Chris D. suggested: Honest Work for Honest Silver Pay U.S. closes 3 more banks, 68 so far in 2011. (One with 1.7 billion in deposits!) Investors: Threat of Stagflation Looms as Prices Rise Despite Bad Economy Items from The Economatrix: Moody’s Lowers US Economic Outlook Through 2012 Analyst:  “Not To Own Gold Is To Trust Governments” Economists See Growing Risk Of Global Recession Here We Go Again:  Another Big Down Day For Dow Gold Hits Latest Record High, Near $1,830 Behind The Selloff:  Stocks …