Category: Economics & Investing

The U.S. economy is now spinning out of control. It is now apparent that the 2008 credit crisis was never resolved. Rather, it was simply postponed, by creating $16 trillion out of thin air. With all that cash pumped into the system, a few people are now singing Once In A Lifetime, but most are singing the Hard Times Blues, or even Are They Gonna Make us Outlaws Again? A recent piece by Tyler Durden: EU Debt Restructuring Leads to Bailout Euphoria / Silver to Double to $100 Say Citigroup. Tyler notes: “…it is very unusual to see such a …

Gold to Rise on $14.3 Trillion U.S. Debt Limit Increase Bob G. spotted this: Europe’s Contagion Effect: Prepare for a Global Economic Collapse Ron’s Paul’s speech on the Federal Debt Ceiling John T. sent this: How to make sense of the gold-to-silver ratio Chris D. recommended: The Symbolic Nature Of Money Dr. Gary North’s comments on debt-based money and its alternatives. Items from The Economatrix: Gold Could Hit $1,700 By the End of the Year:  Analyst Fitch Reiterates Warning on U.S. Credit Rating Iran Opens Oil Bourse — Harbinger of Trouble for New York And London? Economy’s Spring Slump Could …

Entschuldigung, but doesn’t this sound a bit inflationary, for the U.S. Dollar?: Audit: Fed gave $16 trillion in emergency loans to foreign banks. Worth reading: How Capitol Hill Is Pushing the U.S. Economy to the Edge. (Thanks to Sue C. for the link.) Chris H. suggested this: Gold shines, but silver is the moneymaker. Economics Professor: “[We’ll Have] a Never-Ending Depression Unless We Repudiate the Debt, Which Never Should Have Been Extended In The First Place” (Thanks to John R. for the link.) K.K. sent this: Silver Update: Caught in the act, “The Comex is a completely and utterly corrupt …

Farmer John suggested this article: 20 Cities Where Housing Prices Are Still Dropping Like A Knife Air Conditioning, Cable TV, and an Xbox: What is Poverty in the United States Today? (Thanks to K.A.F. for the link.) John R. sent another big bunch-o’-links: The Fed Is Now More Leveraged That Lehman Brothers Was  (Graham Summers)   Global Economic Crisis: Finance is the New Mode of Warfare (Michael Hudson)   Portugal Joins Spain and Greece in Lying About its “Colossal” Deficit (Tyler Durden)   Five buys, Five sells for 10 long years of no growth—Commentary: Recession hits in 2012, and things don’t …

Mr. Rawles: You, and numerous other hard money advocates–like Ron Paul–spend a lot of time talking about the problems created by the Federal Reserve. You are right in calling it a private banking cartel–because, yep, that it exactly what it is. But what is the solution? Thanks, – Ralph in St. Louis JWR Replies: In essence the problem is our reliance on debt-based funny money. (Take the time to watch the Renaissance 2.0 video series. While I don’t agree with all of its creator’s conclusions, overall it is excellent.) My emphasis on hard goods (barterable tangibles) and hard money (Nickels …

Whispering the dreaded “D” word: Federal Reserve Actively Preparing for the Possibility of U.S. Default. ( Thanks to N.B. for the link.) Columbus [Georgia] Forms Copper Theft Task Force. “Columbus Police say last year alone $2 million in copper was stolen throughout the city.” (Thanks to F.G. for the link.) F.J. sent a link to an interesting piece penned by Eric Fry: Investing Ahead of the Curve. Here is a quote: “In 1969, for example, the Argentine government trimmed two zeros off the existing Peso Moneda Nacional to create the new Peso Ley. In 1985, the government slashed four zeros …

Billionaire hedge fund manager Ray Dalio foresees a U.S. Dollar collapse by 2013. (Thanks to Tom in Buffalo for the link.) Dr. Ron Paul in The Daily Bell: Debt Ceiling Drama Chris G. pointed me to an article where some Tea Party members wax SurvivalBlogish: Money Gone Rogue. Reader David D. mentioned this in Der Spiegel: Tensions Rise in Greece as Austerity Measures Backfire. David expressed an opinion that the “austerity measures” benefit bankers. Citing the Argentinean experience to contrast the economic nosedive in Greece, David commented: “…the bankers’ austerity prescriptions are the quickest and surest way to beat the …

It was no great surprise on Monday to see spot gold punch through the $1,600 per ounce level for the first time ever, and spot silver back up above $40 per ounce. But just wait…. If Greece defaults on its sovereign debt, there could be some real fireworks in the metals markets. (And in the credit markets, and the FOREX currencies market…) Loyal content contributor F.G. sent this news item: Wealthy Britons Prepare To Flee Central Banks’ First-Half Gold Buying Surpasses 2010 Total. (Thanks to Jeff B. for the link.) Michael W. sent this: Free seeds helping Americans get by, …

Does this sound familiar? Iran’s Economic Spiral: Country to Cut ‘4 Zeros’ Off of National Currency. (A hat tip to F.J. for the link.) The same thing could eventually happen here. If it does, anyone holding coinage will reap a huge overnight profit. (Since coinage is usually not part of a currency exchange.) Have you been stocking up on Nickels? Items from The Economatrix: Ireland’s Debt Junked as Euro Crisis Spreads The Beginning of the End of Europe Eurozone Hits The Fan:  Gold Price Surging & Silver Begins to Make a Move A Run on the United States Government Alternative …

James Wesley: When my father passed away a few years back my sisters and I split his meager coin collection. So I had a small amount to start out with. At one point when silver’s price dropped a bit I went to a local pawn shop and bought thirty-two 90% silver quarters for spot price. The melt value has increased roughly 10% so far. Then I went into local banks and asked if they had any fifty cents pieces. Sure enough a teller provided me one 1964 (90% silver) and a couple of the 1965-1970 vintage (40% silver), getting the …

Zero Hedge recently posted this, which should sound familiar to SurvivalBlog readers in general and Redoubt States advocates in particular: The Strategic Advantages Of Community Building Several readers sent this: Ron Paul: “America’s AAA Rating Not Worth Saving” Because “We Are Insolvent” Found at Fierce Finance: SEC commissioner blasts settlement with ex-Morgan Stanley trader   Items from The Economatrix: Echoing Moody’s: S&P Warns It May Downgrade US Credit Rating Ratio Of Insider Selling to Buying on The S&P:  3,700x! Bernanke:  Fed Ready to Act if Economy Worsens Stock Rally Weakens as Hopes Dim for More Stimulus Fitch Downgrades Greece One …

J.B.G. was the first of several readers to mention this: Return of the Gold Standard as world order unravels Over at Fierce Finance: FATCA law is little known–but could be tricky Tina B. suggeted this by Ellen Brown: Why QE2 Failed: The Money All Went Offshore Gary North: On the Road to Government Default. (Thanks to John R. for the link.) Headline from England: Age of austerity to continue for decades, warns OBR Items from The Economatrix: UK:  Suicide Rates Rise as Debt and Cuts Take Their Toll 25 Reasons to Buy Gold and Dump Dollars Italy Contagion Fears Knock …

Bernanke: Fed May Launch New Round of Stimulus. It seems that Helicopter Ben is addicted to “quantitative easing”–the Fed’s euphemism for monetizing Federal debt. If they can repeatedly get away with creating dollars out of thin air, then the end result is inevitable: the wholesale destruction of the U.S. Dollar as a currency unit. Reader John T. liked this piece by Jim Willie: The Silver Platter Opportunity Yohay over at FOREX Crunch posted this provocative article: Captain Ben Can Handle the Debt Ceiling D.S. sent this: Derivatives Rules to Help Swaps Market Grow $40.7 Trillion, Citigroup Says. The market for …

Hi-yo silver! Typically, the precious metals are in their summer doldrums in July and August. but not this year. This coming Autumn could get very interesting, depending on financial developments on the periphery of Europe. All eyes are presently on Greece, but Italy, Spain, Portugal, Ireland, and Iceland will probably soon be in the headlines again. I wouldn’t be surprised if silver gets above $55 per ounce. Its a good thing that most SurvivalBlog readers have been buying on the dips. Reggie Middleton warns, over at Zero Hedge: Eighteen Percent of the EU is Literally Junk, Carried as Risk Free …