Category: Economics & Investing

US Finances Rank Near Worst in the World: Study. (A hat tip to C.D.V. for the link.) J.B.G. flagged this: Worst Texas Drought in 44 Years Eroding Wheat, Beef Supply as Food Rallies Commentary from Ireland: Default or not to default? Now that’s a no-brainer Items from The Economatrix: Just Not in Time Manufacturing: Toyota Tells US Plants “Prepare to Shut Down”  Breaks in Supply Chain: Disaster in Japan Sends Ripples Through Global Economy Fed Officials See U.S. Recovery Taking Hold   Gold Fields: Gold at $1,500 Possible  Durable Goods Orders Fell 0.9% in February  

Commentary by Robert Samuelson at Real Clear Markets: Europe’s Debt Crisis Trumps Japan Tragedy Iowa farmland values shoot up 25% in one year. (Thanks to F.G. for the link.) Reader Greg C. flagged this: New Home Sales Dive to Record Low. (Slowest sales rate in nearly 50 years! LFG suggested this commentary by Ted Butler: Silver Review and Outlook. Ted and I both prefer silver over gold. Items from The Economatrix: End Game   Surviving A Societal Breakdown  Investors Flock To Japanese Stocks After Quake   Gold Just 1% Of Record Nominal High Of $1,444/Oz – Risk Of Dollar Crisis …

Reader Chad S. spotted this: Gas, food prices double whammy for rural families. Lorimer Wilson at the It’s All About Munknee blog recommended this piece: For the Last Time, Is Gold in a Bubble? Reader C.D.V. sent us this article evidencing Minnesota’s budget crises: Rosemount Decides To Stop Capturing Stray Cats Items from The Economatrix: North Carolina May Issue Gold Tender   Economic Disasters Which Threaten To Rip World Financial Markets To Shreds   Why Gold Is No Longer An Effective US Dollar Hedge New Homes Are Becoming A Bad Deal In Weak Markets   Oil Tops $105 Per Barrel …

Yikes! February Existing Home Sales Dive, Prices Near 9-Year Low. (Thanks to Brett G. for the link.) Jonathan C. flagged this: US Approaching Insolvency, Fix To Be ‘Painful’: Fisher. Gold key to financing Gaddafi struggle Portugal braces for government collapse over debt vote Items from The Economatrix: Deals Help Push The Dow Back Above 12,000   Oil Rises On Concerns About Libya And Supplies   Gold Rises On Growing Middle East Tensions, Weak Dollar   $2,500 Gold Prices:  Double Market Returns As China’s Gold Fever Breaks    

For nearly a decade, I’ve advised buying silver rather than gold. This is because 1.) Silver is more useful than gold in post-disaster bartering, 2.) I expect the silver to gold ratio to continue to fall, perhaps to as low as 16:1. And, 3.) The chance of silver ever being confiscated by bureaucrats is much lower than for gold. If you are planning to ratio trade out of gold into silver then try to sell your gold coins on a up-spike day, and then wait briefly and buy silver on the next dip day.  That might make the dealer’s commissions …

New at The Daily Bell: Bill Bonner on the Failing US Bond Market, the Coming Hyperinflation and the End of the Dollar Reserve System Mike H. spotted this: Russia: quake boosts used car prices Items from The Economatrix: Strong Economic Data Points to More Hiring   Stronger Economic Reports Help Stocks Rebound   Geithner Worries Japan Will Dump Treasuries to Raise Cash  Unemployment Rises In Nearly All Metro Areas   The World’s Best Gold Experts:  “Buy And Hold” 

Reader Bryan E. reports: Wholesale prices rise 1.6% due to biggest jump in food costs in over 36 years. Reader Greg C. notes: “I live in the Tampa Bay area in Florida.  Today I went to a fast food restaurant to grab a quick lunch and noticed a sign saying they would only put tomatoes on your sandwich if requested.  Curious, I inquired about it and they said that a case of tomatoes went from $20 to $50 due to the freeze in Mexico.  That got me to thinking.  If even low levels of fallout hit the farms from Japan, …

Readers in France or elsewhere in the EU might be interested in acquiring some of the new “10 euro des 26 régions” coins as both a silver investment and as an inflation hedge, with no downside risk. They are 10-euro coins, weighing 10 grams and are sterling silver (92.5% fine). These coins are available at face value in post offices, but are region-specific and some regions might have already run out. I’ve read that in Brittany the new collector coins are still available, and you can purchase limited quantities at their face value. A SurvivalBlog reader mentioned that he was …

Power to the Pinko People (and to their wall outlets): Demonstration In Detroit Demands End to Utility Shutoffs. R.G. forwarded a sobering economic forecast from the CBO: The Budget and Economic Outlook: Fiscal Years 2011 to 2021. (As my friend the late Chuck Brumley was fond of saying: “If your outgo exceeds your income, then your upkeep will be your downfall.”) Coburn: Government ‘Stole’ From Social Security. (A hat tip to R.P.B. for the link.) Items from The Economatrix: Michigan Bill Would Impose “Financial Martial Law”  Investor Portfolio Preparation For Hyperinflation, Assets For Protection And Profits   Silver Bullion Coin …

Several readers mentioned this piece by Chris Martenson, over at Zero Hedge: Alert: Nuclear (And Economic) Meltdown In Progress. These are Martenson’s strongest- ever admonitions to get seriously prepared. James Turk: Gold $8,000 Per Ounce and Hyperinflation a Sure Thing. Business Insider: It’s Not Your Imagination: The Number Of Disasters Just Keeps Rising Items from The Economatrix: As Treasury Cash Drops to Just $14.2 Billion, And No Bond Auctions Until Next Week, is America About to Run Out of Cash?   US Debt and Deficits Ensure Violent Dollar Sell-Off Ahead   The Gathering Political and Economic Storm   Tsunami May …

F.G. suggested this: Golden Years–People have had a fascination with gold for thousands of years. Here are some milestones along the way. C.D.V. sent this bit of gloomage: Mandatory Spending to Exceed all Federal Revenues — 50 Years Ahead of Schedule. From John R.: Europe debt risk hits $2.5 trillion Items from The Economatrix: The Silver Door Is Closing Sprotts On Silver — The Door Is Closing      14 Reasons Why The Economic Collapse Of Japan Has Begun   Around The World Graphs 

The latest at Dr. Housing Bubble: The financial psychology of negative equity – 1,880,000 California mortgage holders have no equity in their homes. California home prices will fall 15 to 25 percent in the coming years. 1 out of 3 California mortgage holders at risk of walking away or defaulting. What’s the Difference Between 1 Gold Karat, 1 Diamond Carat and 1 Troy Ounce? Ben S. suggested this: Normal Interest Rates Would be a Disaster for U.S. Debt Items from The Economatrix: Fears of a Slowdown in Japan Push Stocks Lower   Quake Selloff Wipes $287 Billion Off Tokyo Stock …

John R. recommended a piece over at Lew Rockwell’s site by David Stockman: Why Deficits Do Matter. Tamara over at the View From the Porch blog mentioned this: Normal Interest Rates Would be a Disaster for U.S. Debt. “None of this can go on forever. The Fed can’t print money forever. The U.S. can’t borrow huge fractions of GDP forever. Austerity is coming. The only question in my mind now is whether we’ll have a currency collapse and hyperinflation first.” Greg in Vermont sent a link to a piece in the leftward-leaning Washington Post, where columnist E.J. Dionne tells us …