Category: Economics & Investing

Roman sent the link to this great piece:  Storing Your Value–Old-School Wealth G.G. flagged this: EUROPAC: We Have Entered The First Of Four Phases That Will Destroy Fiat Money Some Context: How Bad is it in Italy?   The U.S. Dollar Has the Upper Hand Here. [JWR’s Comment: The U.S. Dollar’s relative strength versus the Euro is transitory. In the long run, our debt (as a percentage of GDP) will become all too obvious, and U.S. Treasury debt instruments will be propelled to double-digits yields in order to attract investors. That will be a precursor to an extended period of …

Josh flagged this: 100% Chance of Crisis, Worse Than 2008: Jim Rogers M.C. highlighted this headline: The Fall of the Eurozone? Merkel Calls for “New Europe” C.D.V. alerted us to this: Alabama County Votes for Biggest Muni Bankruptcy on Record ($3.14 billion!) M.E.W. sent this piece by “Recovering Venture Capitalist” Bill Freeza: Will Western Civilization Rediscover The Moral Foundations Of Sound Money? Items from The Economatrix: These Five Charts Clearly Show Just How Major — And Depressing — The Current Unemployment Situation Really Is Employers Post Most Job Openings in Three Years Retirement Crisis Closes in On Baby Boomers Progress …

Rick Moran: ‘We are looking straight into the face of a Great Depression’ G.G. sent this news from England: Number of men aged 25-34 living with their parents rockets to 18.6 per cent, the highest level since 1960 At The Daily Bell: Der Spiegel: ‘Consensus Is Growing’ for ECB and IMF Takeover of Euro-Crisis. (And who will provide the support for the IMF? Most likely us–American taxpayers.) Jason Hommel: The Dollar is Done – Deal with It Barclays Says Italy Is Finished: “Mathematically Beyond Point Of No Return” (Thanks to John R. for the link.)) Items from The Economatrix: Gold …

Peter Schiff: Brace for “Abrupt” Dollar Collapse AmEx (American Expat) sent this: Nearly 29% of mortgaged homes underwater, report finds The Entire Global Economy is at The Mercy of Tiny Greece? Items from The Economatrix: Bank Exodus From Euro Zone Sovereign Debt Quickens Consumer Borrowing Up, But Credit Card Use is Down UPS Expects 6% Rise in Holiday Shipments Senate Aims Help at Jobless Vets, Contractors

Chris M. suggested this article: The Shadow Superpower–Forget China: the $10 trillion global black market is the world’s fastest growing economy — and its future. Reader A.N. sent this: US wealth gap between young and old is widest ever Also from A.N.: 7-in-10 Blame Economy for Hiring Freeze John R. liked this one: The Municipal Bond Market Is Imploding Items from The Economatrix: Greece’s Prime Minister Survives Confidence Vote “Gigantic Bank Run” Coming, Says Nobel Prize Winner Fed-up Consumers Planning for “Bank Transfer Day” Banks Closed In Nebraska, Utah; Total 2011 Failures 87

Some Words of Advice From Kyle Bass (Guns, Gold, and Nickels–He is definitely our kinda guy.) Charles Hugh Smith chimes in, with guest post over at Zero Hedge: The Collapse Of Our Corrupt, Predatory, Pathological Financial System Is Necessary And Positive. (Thanks to L.M.W. for the link.) Super Committee Can Keep the Change: Dollar Coin Proposal Lacks Momentum Items from The Economatrix: German Economists On Greek Referendum:  “The Euro Zone Could Face Ruin” Federal Reserve Lowers Outlook for US Growth BofA Forecloses on Home Destroyed By Ike

Liquidity crunch, ahead? CME increases margin call; markets will be under pressure. (Thanks to C.D.V. for the link.) Greek Tragedy, Act II: Der Bild reports that some businesses are getting ready for reintroduction of the Greek Drachma. TUI rechnet schon in Drachmen: PLAN B WIRD AUCH IM FINANZMINISTERIUM BEREITS BESPROCHEN. For non-German readers, here is a rudimentary translation. This might not be “Das Ende der Welt, wie wir sie kennen.” But it might be The End of the Euro As We Know It.(Thanks to S.B. in Holland for the link.) Michael Z. Williamson (SurvivalBlog’s Editor at Large) recommended this over …

SurvivalBlog’s G.G. flagged this: Many States Already Worried About Running Short The descent into the abyss continues: Unable to pay bill, Michigan city turns off lights K.A.F. sent this: Guatemala’s trash ‘miners’ risk lives to find gold Charley S. forwarded this link: ‘He has a right to speak,’ said the cop to the banker Items from The Economatrix: Economy Picks Up But Hiring Outlook Stays Cloudy Retailers Report Solid Gains In October Greece In Turmoil Over Debt Plan, Markets In Limbo Oil Prices Rise On More Encouraging Economic News

SurvivalBlog’s G.G. flagged this: Yes, There Will Be a Student Loan Bailout M.A. sent this from over at SHTFPlan: They’re Trying to Fool You Into Believing That Inflation Is Not a Problem S.B. recommended this by Charles Hugh Smith: Democracy Is Tolerated Until It Threatens Global Markets. Yishai sent this: Hoard Peanut Butter as Prices Soar: Four Stocks to Benefit Items from The Economatrix: Central Banks Top Up Gold Reserves 19 Facts About the Deindustrialization of America that Will Make You Weep Unemployment and Crime

Day of reckoning for shadow inventory and distressed properties – 40 percent of properties in foreclosure have not made a payment in two years or more. Bill Fleckenstein interviewed about gold and the European credit debacle. (Thanks to J. McC. for the link.) Items from The Economatrix: Trucks, SUVs Power Strong Auto Sales in October No Major Fed Moves Expected Despite Europe Fears Factory Activity Slows as Economy Stays Sluggish Bill Whittle has some biting commentary on the “rich” and “poor” in America.

G.G. sent this for the I-Told-You-So Department: Home prices heading for triple-dip. Mark you calendar for June, 2022. That might be a reasonable date for price recovery, barring a mass currency inflation. But even that of course wouldn’t be a genuine market recovery, when gauged in real home values (adjusted for inflation). Don’t miss this great piece by Thomas L. Friedman: Did You Hear the One About the Bankers? (Thank to Jed F. for the link.) Ben S. sent this: The Inflation Shock and the Fall Melt-Up of 2011 Despite Debt Deal, Europe May Slide into Recession John R. sent …

The New American magazine cites my novel “Patriots” in a recent article on hyperinflation. More derivatives news: Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan. (Thanks to BigTex for the link.) Bob S. spotted this: USDA economic research say CPI of food price to rise 3.5% – 4% in 2011. Reader AmEx (American Expatriate) was the first of several readers to send this: Three Men Arrested In Nickel Theft At Local Steel Plant Meanwhile, some sad news from England: Thieves desecrating memorials to our war heroes every other day as metal plaques and statues are being sold for …