Category: Economics & Investing

I called this one right: Silver struggles again after futures market raises margin requirements. (Back on April 21st, I had written: “Also, be forewarned: The COMEX Governors are soon likely to slam on the brakes on the precious metals markets by changing their trading rules. (Most likely by raising margin requirements.) Prices will get very volatile. Be ready to take advantage of any steep sell-offs.”) D.B. in Seattle suggested this piece by Niall Ferguson: Sticker Shock. It begins: “The Fed may deny it, but Americans know that prices are rising. In this week’s Newsweek, Niall Ferguson takes a look at …

Housing Crash 2.0 Is Accelerating Jim Willie: Currency Dead End Paradoxes Banksters Covered 26 Million Silver Oz Short Position. (Thanks to Chris D. for the link.) Tyrone W. wrote to mention a Glenn Beck interview with G. Edward Griffin about the history of the Federal Reserve. Items from The Economatrix: Economy Slowed By High Gas Prices, Bad Weather More People Applied For Unemployment Benefits Currency Dead-end Paradoxes, The Besieged US Dollar

J.B.G. suggested this piece in The Washington Times by Arnaud de Borchgrave: Geneva Gnome’s Global Dread George S. mentioned some interesting news: North Dakota does today what no other state is able to do — cut taxes G.G. sent this inevitable bit of news: Thefts rise as price of gas goes up Items from The Economatrix: Critics Say Fed Policies Devalue The US Dollar Thanks to Obama, Gas Jumps in a Flash Will Silver Go Above $50 and Stay There? Bernanke Holds First Press Conference in Fed History

Jeff Reeves: The nine places where inflation is crushing us. (Thanks to Paul B. for the link.) G.G. flagged a piece at Zero Hedge: More Americans Believe The Country Is In A Depression Than Growing The World’s Last Typewriter Factory Closes in India. (A hat tip to RBS for the link.) Spotted at Fierce Finance: Goldman Sachs: Too big to prosecute Items from The Economatrix: Massive Raid on Silver / Open Interest in Silver Remains High Everything’s OK with Economy, Go Back to Sleep S&P Cuts Japan’s Rating Outlook to Negative US House Prices Fall Close to 2009 Lows With …

Ron D. suggested this article over at the Accept The Challenge blog: Precious Metals Security. Reader Bill J. liked this piece by Peter Schiff: Bernanke is Lying; Bet Against the Fed and the Dollar. Bill’s comment: “I’m in the insurance/financial services business so I can attest to the impartiality of [Martin] Weiss’s rating systems.  Their approach is different from that of S&P, Moody’s, etc. in that they do not receive compensation from the very entities they are rating. Weiss doesn’t have the inherent conflict of interest the others do.” Items from The Economatrix: China’s Central Banker:  We Own Too Much US …

Frequent contributor KAF sent this: Fed says $600B bond program to end in June. JWR’s Comment: Any bets on whether The Fed can break itself from their new-found addiction to creating money out of thin air? I’m betting that they’ll find an excuse to continue Monetization (aka “Quantitative Easing”), indefinitely. In essence, monetization is the crack cocaine cooking of the currency world. B.T.D. sent this: Treasury quietly plans for failure to raise debt ceiling, Regular content contributor B.B. forwarded this: Wal-Mart: Our shoppers are ‘running out of money’ Several readers sent the link to this entertaining “rap music video”: Fight …

Central banks pump £3 trillion into world economy. Reader J.D.D. suggested this by Rick Ackerman: Finally, a Hyperinflation Argument That Persuades CNBC reports: Killer Combo of High Gas, Food Prices at Key Tipping Point. (Thanks to C.D.V. for the link.) C.D.V. also sent: McDonald’s warns of higher food inflation Want to compare the declining purchasing power of the Dollar, all the way back to 1904? See The Inflation Calculator G.G. flagged this: Whoa Baby, Prices Are Jumping for Diapers, Other Family Basics

Some new commentary on the US Dollar Index by Toby Connor: Bernanke Bottom or Crash! Should You Buy A Home In 2011? Check Out These 29 Absolutely Crazy Statistics About The Housing Crisis J. in Galt’s Gulch recommended this over at Seeking Alpha: The Economic Collapse Cycle – Where We Are Now and How to Invest Accordingly Items from The Economatrix: Adventures in Silver and Gold, Part 1 Ampex Starts Reverse Inquiry:  Seeks to Buy “Any Quantity” of Silver From Clients at $3 Over Spot Oil Slips as Dollar Gains, Gasoline Up For 34th Straight Day Is Gold Rising Because …

Jonathan H. suggested a piece over at Slate: The Great Global Freakout of 2011 Imagining the worst-case scenario if the United States even comes close to defaulting on its debt. Loyal content contributor B.B. sent an article by James West of The Midas Letter: $5,000 Gold and $300 Silver are Credible Numbers Bob Chapman of The International Forecaster outlined the current short squeeze in the silver market in a radio interview with Alex Jones. To summarize Chapman’s remarks: Gold is going to break out here and is going to go to $1,600, $1,650, silver is another situation, the unusual situation …

Robert R. wrote to recommend an interview with Bob Chapman of The International Forecaster wherein he lays out “details on where gold and silver is going and explains the shorts by the big banks, market crashes and dollar defaults, and warns to buy plenty of freeze dried foods, battle rifles, thousands of rounds of ammo, and plenty of spare magazines.” Price of gold means panning supplies and metal detectors are flying off shelves. (Thanks to F.G. for the link.) C.D.V. was the first of several readers to send a link to an article that was also featured on The Drudge …

Michael Pollaro writes in Forbes: US government’s fiscal plight, the numbers say it all J.B.G. sent this from The Telegraph: Gold price could rise to $1,700 an ounce More housing market doom: Distressed Properties Claim 40% of Existing-Home Sales. (Thanks to SurvivalBlog’s Poet Laureate G.G. for the link.) Loyal content contributor F.G. sent this: A Frightening Satellite Tour Of America’s Foreclosure Wastelands Doug C. recommended: Survivalist Ahead of Silver and Gold Items from The Economatrix: Government Cash Handouts Now Top Tax Revenues Obama Warns Spending Cuts Could Trigger Second Recession. “Laissez Les Bon Temps Roulez!“ US Home Foreclosures Soar to …