Category: Economics & Investing

C.D.V. sent us a link to a Zero Hedge piece: Jobless Claims Huge Miss to Expectations of 380K, Print at 412K, Previous Revised Upward, Core PPI Higher Than Expected Also from C.D.V.: Zoellick Sees Economic Risks From Food Prices, Debt, Inflation. In related news: World Bank president: ‘One shock away from crisis’. (Thanks to Mark W. for the latter link.) Pierre M. was the first of several readers to forward this link: More Americans leaving the workforce. John S. highlighted this one: Banks Face $3.6 Trillion ‘Wall’ of Debt: IMF J.H. was the first of several readers to mention this …

U.S. Companies Shrink Packages as Food Prices Rise. Reader Bryan E. wrote to mention: “Over the weekend we had visitors who are in the wholesale food distribution business. They were relating that they had experienced a 14% increase in wholesale food prices during just the month of March. Here are some examples: Item Size March 1st Price April 1st Price Sugar 55 lb. $33 $37 Flour 50 lb. $11 $16 Butter 30 lb. $74 $91 Margarine 30 lb. $17 $24 Catfish 15 lb. $54 $89 Cheese 42 lb. $2.55/lb $2.91/lb Restaurateurs are greatly concerned about how they are going to …

Reader J.B.G. suggested this article: World Bank: Food prices have entered the ‘danger zone’ C.D.V. sent this: Chris Martenson: Insolvent and Going Deeper By way of the Fierce Finance e-newsletter, I found this: Is Goldman Sachs Too Big to Fail? T.L.B. liked this one: What The Silver Vigilantes Understand That You Probably Don’t (Arithmetic, Human Nature and other Stuff) From my friend Bob G.: 20 Signs That A Horrific Global Food Crisis Is Coming Items from The Economatrix: US Burning Economic Candle at Both Ends Feds’ Exit Doors Close:  Inflationary Spiral Ahead Keeping Capital In A Depression Commodities Plummet On …

I’m sure that most SurvivalBlog readers watch precious metals prices closely. Friday on the COMEX was amazing: Spot gold at $1,486.40 per ounce and spot silver at $43.05 per ounce! At this point, it is best to wait for a big retracement before buying any more. Big banks are government-backed: Fed’s Hoenig Reader G.P. suggested this Daily Mail article: $5 gas by summer? Prices near $4 a gallon as frugal Americans cut back at the pump (and some even start stockpiling food) Goldman Sachs Calls the Top in Oil and Metals: Clients Advised to Close Positions. JWR’s Comment: Given the …

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 …