Category: Economics & Investing

Michael Z. Williamson (SurvivalBlog’s Editor at Large) mentioned this chart: The U.S. Misery Index, showing unemployment and inflation. Note that the numbers for the last 16 years are artificially low, because the back room boys have been monkeying with the inflation statistics. (They have been made artificially low, by the advent of hedonic adjustments.) Reader RJK wrote: “Jefferson County, Alabama will be bankrupt by July of 2011 and the bankruptcy will exceed that of Orange County, California.  The county is going bankrupt because the county commissioner engaged in [derivative] interest rate swaps that exceeded the level of debt. He and …

JWR: Regarding the article “Some Investment Options for the Prepper”, K.P. suggested: “Real Estate Rentals – Buying real estate now? Are you crazy? No, not at all.” No, K.P. isn’t crazy, but I believe that he is uninformed. For many decades I have been bullish on real estate, but the rules have changed, and this time those changes are permanent and come with very serious consequences for those who hold a mortgage. Details of “The forever mortgage” were quickly spelled out, and then any information of “The forever mortgage” disappeared as quickly as it appeared. Real estate is great and …

Reader Linda U. sent this: Five Things that Will Happen to You When America Goes Bankrupt Pierre M. spotted this: Faux job numbers could lead to real trouble G.G. suggested this piece: How Safe Is Your Roth IRA? Also from G.G.: Charles Plosser and the 50% Contraction in the Fed’s Balance Sheet G.P. recommended this New York Post article: Taxpayers foot $850M bill for Wall St.’s pension fees Items from The Economatrix: Stocks Edge Higher on Better Economic Data Fed Survey: US Economy Improves in Spring Oil Falls as Hopes Grow for Libyan Cease-fire Gold Advances to Record on Weakening …

Ponder the implications: Iceland voters reject plan to repay bank debt. (Thanks to Pierre M. for the link.) Loyal content contributor C.D.V. sent this: IMF Cuts U.S. Growth Forecast on Oil, ‘Lackluster’ Jobs Pace Over at Fierce Finance: MERS stokes local controversies. Some interesting observation on global currency moves, over at Malthus University: Update from INET. Reading back through the thread of of posts makes it clear that The Powers That Be (led by George Soros) may have plans for a new global currency. Meanwhile, over at The Daily Bell, we read: IMF Plots Role as World’s Central Bank? Items …

My wife and I have been preparing for any probable event for the past five years.  I will start by stating the investments that we started with followed by an overview of various investment vehicles and their pros and cons. Five years ago my wife and I were your average middle class couple with two kids, a decent paying job, and a lot to look forward to.  We owned a car with no loan and we had an SUV with a loan.  We bought into the 2006 housing bubble not knowing how deep the corruption was. We discovered SurvivalBlog.com only …

The “D” (Default) word: Reader Wade C. wrote to mention that both the Associated Press and The Wall Street Journal have started talking a about a U.S. Treasury default on debt obligations. Scott M. mentioned: PIMCO goes short US government debt, raises cash holdings David R. mentioned this press release: Suburban Family Files Constitutional Challenge to City’s Ban on Front-Yard Cookie Stands Gas Prices Climbing Toward $5 Per Gallon. Items from The Economatrix: Sales of Wholesale Goods Slip in February Paul Drockton, M.A. on Silver Perfect Storm for Gold and Silver Silver’s Performance to Treble that of Gold Over 3-5 …

The truth behind the “budget slashing” rhetoric: Debt Jumped $54.1 Billion in 8 Days Preceding Obama-Boehner Deal to Cut $38.5 Billion for Rest of Year If you thought that the systematic looting of the Social Security trust fund was bad, then read this sad portent of future thievery: Treasury may borrow federal retirement funds in debt emergency. (“No cause for alarm. Nothing to see here, move along…”) Over at The Daily Bell: The Story of Entitlement Addiction Items from The Economatrix: Shopper Spending Surprisingly Strong in March (Monetization as stimulus?) Ron Paul:  Gold, Commodity Prices “Big Event” Signaling Economic Collapse …

Inflation Watch: Pierre M. suggested this: Rush to Use Crops as Fuel Raises Food Prices and Hunger Fears U.S. Postal Service to Hike Rates on April 17th. Meanwhile, across the pond: Royal Mail Stamp Prices to Rise in April 2011. (A 13% increase.) Husqvarna Announces Price Increase (an average of 15%) Multiple crop failures are pushing cotton prices through the roof!

Avoiding Federal Government Shutdown: The agreement included some $38.5 billion dollars of extra spending cuts. We are swimming in red ink and all they can agree to is a miniscule cut? Do they think that people will be fooled by the “big number” of $38.5 billion? They will never balance the budget! The congresscritters have doomed us to a Dollar Disaster of epic proportions. Frequent content contributor C.D.V. sent us this: U.S. Dollar Crisis Looms, Spike in Interest Rates Following End of QE2 Also from C.D.V.: Toxic Dollar: Why Nobody Seems to Want US Currency (Finally, the mainstream media is …

Jim: We’ve previously discussed in SurvivalBlog that coins are usually untouched by a nation during remonetization, meaning a significant recovery in purchase value after such event. What is the likelihood the US would keep the dollar coins in circulation, given their low regard by most consumers?  This would mean the coins would avoid remonetization, be worth a “new” dollar each, offering a significant advantage. The Fed’s only real options would seem to be to attempt to collect them all, or issue notices of their reduction in value/expiration as legal tender.  Neither sounds like something they’d want to do. – Michael …

Silver and gold certainly had a solid trading week. When I last checked, spot gold was at $1,475.10 per ounce (an all-time high) and silver at $40.93 per ounce! Silver has advanced almost $25 per ounce in the past 12 months and it was $26.75 per ounce as recently as January. In Housing Market’s Suspenseful Story, the Tell-Tale Stat is Inventory Paul Tustain: Gold Is Sending A Signal That The Monetary System Is In Grave Danger. (Thanks to John R. for the link.) US Dollar Breaks – LOWER, (Again, 72 is the magic number to watch for on the US …

James C. sent this: The Countdown Has Begun for the Eurozone Breakup J.B.G. spotted a great piece that quotes John E. Silvia, chief economist at Wells Fargo: US Going Same Route as Greece, Portugal: Economist Malls Face Surge in Vacancies (Highest rate in 11 years.) Raymond V. sent this: Congress Faces $2 Trillion-Plus Debt Decision Items from The Economatrix: World Economy Facing Numerous “Black Swans”, Says IMF US Jobs Report:  Take This Job And Shove It Silver Hits 31-Year High As Demand Increases Up To Our Eyes (The Mogambo Guru) Oil Settles Higher, Tops $109 On Nymex Unemployment Falls In …

From Zero Hedge: Meet The 171 Banks For Which The Margin Of Failure Is [As Little As] One Thousand Dollars B.B. recommended this post over at Seeking Alpha: Food Prices and Global Hunger Equal Riots, Civil Wars and Revolution Chris D. suggested this post: No Investment Goes Straight Up, Except in a Mania. John R. sent this: Despicable Lies, Delusional Economic Recovery, Hyped Unemployment Numbers  Also from John:   Mortgaging Our Grandchildren’s Future? That’s Being Optimistic! (Jeff Berwick in The Dollar Vigilante) U.S. Fiscal Meltdown in Spitting Distance: Laurence Kotlikoff. He has some excellent analysis of the current political grandstanding. The …

Mr Rawles, I was aware that pre-1965 [dimes, quarters, half dollars and dollars] are 90% silver, but I also learned that [some] coins made from 1965-1970 were made with 40% silver. My question is, is there any value to these coins, and are they worth keeping around due to their silver content? Thanks – Andrew A. JWR Replies: The 40% silver composition only applies to Half Dollars from those years. Surprisingly, they are still sometimes found in circulation. (In fact, more so than any other U.S. silver coin.)  Save every one that you can find! See the Coin Roll Hunters …

Using the Backyard Grill This Summer Just Got More Expensive. (Thanks to J.D.D. for the link.) Brent S. suggested an article by Robert McHugh: Silver and Gold Will Remain in Strong Uptrends Why Electric Cars are Really Coal Cars. H.M. sent us this: The foreclosure mess isn’t going away. Pierre M. and Chip W. both sent this: Oil could hit $200-$300 on Saudi unrest. Several readers sent this: Feds seek $7 Million in privately made ‘Liberty Dollars’. We are witnessing an absurd inversion of reality: The government, which now prints only worthless and irredeemable fiat, wants to seize Norfed’s genuine …