Category: Economics & Investing

Fed: Default would be dangerous; Fitch may cut rating. (A hat tip to Sue C. for the link.) The dreaded “D” word is spoken: China warns U.S. debt-default idea is “playing with fire” K.A.F. sent this interview of Peter Schiff: Lack of buyers may force Treasury to boost interest rates Reader J.B.G. spotted this: True Cost of Fannie, Freddie Bailouts: $317 Billion, CBO Says Reason # 4,386,662 to leave the Mickey Mouse State: California taps highest income taxpayers for more revenue. (A hat tip to Tom B. for the link.) B.B. spotted this: Federal Reserve Set to Implode Economy. Also …

Mr. Rawles,   After packing many rolls of nickels in .30 caliber ammo cans, I now use a much quicker storage method. Specifically, I discovered that I can place five cardboard boxes of nickels that I buy from the bank ($500) directly into one 20 mm ammo can. The five cardboard boxes fit perfectly in the can, with no extra room. I can load each can in only 1-2 minutes. The packed cans are heavy (maybe 115-120 pounds), and therefore difficult to move. So I usually position each can where I plan to store it before placing the boxes in it. I bought a bunch of 20 …

J.D.D. recommended this excellent video clip: Must See Tom Woods Speech. Woods is a very entertaining and thought-provoking speaker. Matt R. sent this: Will Germany and France stave off a Greek default? My Big Fat Greek Debt Default: Greece, the Global Perspective. (Thanks to Kostas for the link.) Courtesy of Pierre M.: Taxpayers Dollars Still Bailing Out Banks G.G. flagged this: Falling from housing peak: John McMonigle’s ride Items from The Economatrix: Consumers Borrowed More For 7th Straight Month Companies Pulled Back On Job Postings In April Stock Indexes Fall For 5th Straight Day OPEC Split Over Increasing Oil Production …

SurvivalBlog’s G.G. sent this: Bob Rodriguez: The man who sees another crash. Moody’s Warns Big Banks Of Possible Downgrades Don’t Hold Your Breath Summer job bummer: Teen unemployment 24 percent. (Thanks to G.G. for the link.) Items from The Economatrix: Treasury Continues to Dip into Retirement Accounts BBC HardTalk:  Jim Rogers Moody’s Threat of US Downgrade Departure from S&P’s Warning

B.B. was the first of several readers to send this article: China Has Divested 97 Percent of Its Holdings in U.S. Treasury Bills. here is a key quote: “Most of the U.S. national debt is made up of publicly marketable securities sold by the Treasury Department and I.O.U.s called ‘intragovernmental’ bonds that the Treasury has given to so-called government trust funds—such as the Social Security trust funds—when it has spent the trust funds’ money on other government expenses.” Talk about a Ponzi scheme! The Sky Is Falling, It Is Time To Panic And The U.S. Economy Has Fallen And It …

When Faith In U.S. Dollars And U.S. Debt Is Dead The Game Is Over — And That Day Is Closer Than You Might Think. Wayne Root: Why the Greatest Depression of All Time Has Begun How Gold Could Reach $13,644 An Ounce And Silver $843 An Ounce Reader K.A.F. sent a link to and article that illustrates that the implication of metals stripping can go far beyond crack heads electrocuting themselves: CSX train derails in Taunton; police investigate theft of railroad tracks Dulce et decorum est: Bank of America Gets Pad Locked After Homeowner Forecloses On It. (Thanks to Greg …

JWR, Thank you for your site, I read it daily. I would like to point out that local coin auctions are another good place to pick up some silver. I came across an ad in the classified section of the local paper for a coin auction that was being held at one of our local auction houses. They had a web site that listed all of the coins that were to be for auction that following weekend. There were over 500 lots of coins for auction that day. I picked up several 40% Ike dollars for $3-$5 less than what …

Barry Ritholtz: FDIC Bank Failures Chart. (Thanks to SurvivalBlog’s Poet Laureate “G.G.” for the link.) Chad S. sent a link for the few folks who feel that they don’t get enough gloom and doom from reading this column: DailyJobCuts.com. Items from The Economatrix: US Home Price Fall “Beats Great Depression Slide” Dreaded Double Dip In Housing Is Here Consumer Confidence Falls Unexpectedly In May The Brittle Financial American Middle Class

You may recall Buckeye, Arizona, as the home of a couple of the fictional characters in my novel “Patriots“. (They are also featured in the sequel, “Survivors”, that will be released in October.) Here is a video that shows a 3-bedroom, 2-bathroom house built in 2006 currently on the market in Buckeye. Its price has dropped from $184,900 to just $39,900. Yikes! Prepare for More Money Printing: Analyst Reader G.P. suggested this from The Telegraph: The Bank of England’s astonishing escape from the financial crisis. SurvivalBlog’s G.G. sent this: Time To Celebrate The Recovery: Food Stamp Usage Hits Fresh Record …

Reader John T. sent a link to some ominous commentary by Bob Moriarty about derivatives: The Ticking Time Bomb Horror for US Economy as Data Falls off Cliff G.P. suggested this by Bob Chapman: The Euro-Debt Crisis: Greece, Portugal, Spain. The Debts are Unpayable. Once the Lending Stops the Bottom Falls Out. Casey in Arizona mentioned a recent piece by Michael Panzner, over at his excellent Financial Armageddon blog: Easy Way Out. Mac Slavo: “America Will Be Dismembered By Its Creditors” 77,000 federal workers paid more than governors. (Thanks to Pierre M. for the link.) G.G. sent this by Puru …

Twenty years ago a friend of mine came to me and said I should be buying silver. He took the time to show me what he’d bought with a small inheritance he’d received that year: 900 troy ounces of silver rounds. He packed them up in a couple of .50 cal. ammo cans and  spent the next 20 years moving them around [buried caches in] his back yards. Back then he paid something under $4 per ounce for an investment total of under $3,600. Twenty some years ago I had at least a hundred other things I could have done …

Mobius Says Financial Crisis ‘Around The Corner’ (Not surprisingly, Templeton says that it is derivatives that are to blame.) Over at The Daily Bell: The Aden Sisters on Money Metals, Where the Market Is Headed and Why Gold Is Going Up Thanks to William B. for sending this: Ireland may need more EU/IMF cash Reader Paul B. spotted this commentary: Gold signaling hyperinflation? Neal E. sent links to a pair of great articles over at Zero Hedge: Chart Of The Day: Currency Devaluation, Old School Style and Charting The Non-Linearity Of Hyperinflation, And Predicting America’s Future Courtesy Of Ancient History. …

Markets Fret About Euro ‘Slow-Motion Car Crash’ U.S. Debt Ceiling Is Like ‘Playing With a Tactical Nuclear Weapon’: Former Comptroller General L.M.W. sent this: Why a Hedge Fund Comprised of Junior Congressional Democrats Should Outperform the Market By 9%. L.M.W.’s comment: “I’ll bet you didn’t know that it’s legal for Congresscritters and Senators to use inside information to play the stock market. Did you? Yes, indeed, acting on inside information, which would get anyone else caught doing it arrested and charged with a felony, is perfectly legal for the people who write the rules. Interestingly, junior Democrats seem to be …