Category: Economics & Investing

Those pesky derivatives, again: IMF advisor says we face a Worldwide Banking Meltdown. (In this case, it is credit default swaps.) J.B.G. was the first of several readers to mention this sign of the times: Thieves steal from community garden KAF sent this: Moody’s Cuts Rating on 12 UK Financial Institutions G.G. sent this: Regulators Close Two More Banks, bringing the nationwide tally of bank failures up to 76 for the year. Also from G.G.: CBO estimates $1.3 trillion deficit for 2011 Keely spotted this new item: Bold thieves steal bridge in North Beaver, Pennsylvania. Nestle Chief Warns of Food …

Silver Prices Beaten Down By a Strong Dollar Chris G. recommended this: California and Bust . Chris notes that this article was recently referenced by Rush Limbaugh and in Zero Hedge.   Quick Fix In Europe? Dream On   Items from The Economatrix: The End Of The Inflation/Deflation Debate There is No Plan to Fix The Economy Economists Agree:  We Are in a Depression From California to New York, the Tide of Protests Keeps Rising Some observations (circa 2007) from the late Derry Brownfield: Our Land is Collateral for the National Debt. Occupy Wall Street:  The Word is Getting Out …

US’s Geithner warns Europe crisis a global threat. (Thanks to Alex B for the link.) Peter Schiff: U.S. Dollar is the Monetary Titanic A sign of our nation’s doom? Nearly Half of U.S. Lives in Household Receiving Government Benefit G.G. flagged this: Americans have no choice but to get more frugal Why We Are Just Half-Way Through The Global Economic Crisis   The Metals Trade: Why I’m Still Really Bullish On Silver Items from The Economatrix: Leaders Push World to Depression Underwater Mortgages Could Sink US Without a Trace Banksters Expect Global Meltdown Within 12 Months Bank of America Website …

US Mint Bullion Sales: Silver Eagles Reach Record 6,422,000 [Troy Ounces] U.S. “close to faltering,” Fed ready to act: Bernanke . (JWR Notes: Keep in mind that “Action” in Helicopter Ben’s lexicon means either borrowing other people’s money, or creating money out of thin air.) IMF official retracts statement on bond purchases. (Thanks to K.A.F. for the link.) Morgan Tries to Quell Rumors About Its Holdings Tom Friedman: China’s Currency Manipulation Good & Bad for America S.G. sent this: Think Occupy Wall St. is a phase? You don’t get it Commentary from Randall W. Forsyth: The Bear Market Is Made …

William J. sent this: Texan investor hedging with $1 million in nickels. Does this sound familiar?) A Swedish newspaper reports: Germany has rush-ordered the printing of new D-Marks. (Thanks to J.B.G. for the link.) Darin H. mentioned this: Gerald Celente: The Crash will happen sometime this month Rhonda T. flagged this: “EU preparing bank rescues amid Greece doubts. Here is a key quote: “All roads now point to a mid-November crunch.” Italy downgrade deepens contagion fears over euro debt crisis. (Thanks to Al H. for the link.)

Things are looking more like my novels with every passing day. Here are the latest headlines… Stocks tank as Greece admits it won’t hit targets. Mentioned over at Don’t Tread On Me: 2011 US Mint Silver Set To Have Bigger Sales Than ’86 to ’92, combined! Are Hedge Fund Managers Dumping Gold Assets To Raise Cash? Four (4) Market Signs Signaling A Recession John R. kindly sent me a whole bunch ‘o links: The Dollar and Reserve Currency (Martin Armstrong)  Debt Men Talking (Richard Webb)   Batten Down The Hatches, A Big Storm’s Coming (Dave Cohen) The FINal Countdown (over …

World is heading for ‘Great Stagnation’, says Goldman “It’s Going to Get a Lot Worse”: ECRI’s Achuthan Says New Recession Unavoidable. (Thanks to Alan W. for the link.) J.B.G. sent this: Protectionism beckons as leaders push world into Depression Erik B. spotted this article: Greece to Miss Deficit Targets Imposed by Lenders as Part of Bailout Texas Bank Is Closed; U.S. 2011 Failures at 74. (Link courtesy of G.G.)

F.G. flagged this from The Wall Street Journal: House Is Gone but the Debt Lives On Max Keiser provides some manic comments on the European debt crisis, the Euro, bailouts, the ECB, the Fed and the potential loss of sovereignty for some nations on the European periphery. CNN: Forecast says double-dip recession is imminent. (Thanks to C.D.V. for the link.) Jonathan B. sent this: How to Stop a Second Great Depression. (Note that this is coming from globalist billionaire George Soros, so don’t be surprised to see “more government” as the proffered solution.) John R. sent the link to this interesting …

Doug Casey Answers The Hard Questions About Hard Times The latest economics animation by Omid Malekan is great: Inflation Explained. (The closing line was priceless: “In a world where cartoon bears on YouTube are the most reliable source of information, anything is possible.”) A bit of confirmation for one of my predictions in 2005 that was then called “alarmist”: No Rise in Home Prices until 2020: Bankers Items from The Economatrix: “Massive Jobs Shortfall” Predicted For Global Economy Fed Dissenter Says Latest Step Won’t Help The Economy Cash Is King No More, Gold Reigns Financial “Cataclysm” To Come; Gold To …

Chris Martenson: The Economy Is on The Ropes and Going Down–We are down to the wire in terms of time to prepare Miek F. flagged this bit of Agenda 21-style nuttery: Gas Tax Should Yield to Mile Fee as Cars Evolve: James M. Whitty Items from The Economatrix: Tightening The Noose:  France Bans Cash Sales of Silver & Gold Over $600 Wall-Street Protestors:  Over-educated, Under-employed, Angry Geithner Plan For Europe Last Chance For Catastrophe Consumer Confidence Remains Weak In September Stocks Rise For Third Day On Optimism About Europe

Commodities Are Down, But Far From Out Tulare County [California] walnut farmers fight theft. (Thanks to Sean B. for the link.) Kevin S. sent: A new supply risk index for chemical elements or element groups which are of economic value Items from The Economatrix: Silver Soars 26% In 26 Hours Denninger:  I Hope You Have Taken the Last Couple of Years to Prepare 10 Million More Mortgages Set to Default, Expert Says Global Financial Meltdown:  Investors Dump Nearly Everything Amidst Worldwide Market Crash Oil Wavers on Weak Home Sales

Chris D. recommended this piece over at Don’t Tread on Me: 12 Reasons Not To Fear September’s Gold And Silver Price Smackdown. JWR’s Comment: In this piece, Scott Wolf notes that the COMEX governors just raised margin requirements on gold, silver and copper again. They can keep manipulating the rules in the futures market, but they cannot stop the demand side of the physical market. In the long run that is what will prevail–even if the futures market is destroyed by outrageous margin requirements–a la Silver Rule 7.) G.G. flagged this: Fed Vice Chair: Economy worse than you think. Also …

Several readers mentioned a video that caused some jaw-dropping by the newscasters: Trader on the BBC says Eurozone Market will crash Reader R.J. wrote to mentIon: ” So just how is ‘Operation Twist’ supposed to fix the economy? One positive from it: It gave me a chance to buy some relatively cheap silver.” J. McC. pointed me to this: The €2 trillion fund to save the euro: The numbers keep getting bigger. When the European Financial Stability Facility (EFSF) was created in May last year it was underwritten to the tune of €440bn (£384bn). Marty Weiss: Twelve (12) Giant U.S. …

I’m sure that most of you noticed that gold and silver took deep dips on Thursday and Friday. (Spot silver declined nearly 20%–almost $9 per ounce!) Then an odd thing happened last weekend: I attended a gun show deep in the American Redoubt. I was happy to see that there were four coin dealers that had rented tables there. I had brought some cash with me, hoping to buy some more silver. I also brought a few fractional gold coins to swap for silver, or perhaps even platinum. (Since spot platinum is presently priced below gold!) But my more realistic …