Category: Economics & Investing

C.D.V. sent this alarming article: US Is in Even Worse Shape Financially Than Greece: Gross. JWR’s comment: Default may be delayed, but it looks inevitable! The latest from Tyler Durden at Zero Hedge: The Fed’s $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went. (Thanks to C.R.W. for the link.) Sue C. suggested: Goodbye Recovery, Hello Recession. Sue’s humorous comment: “Wish I had noticed when we came out of the recession.” Also from Sue: “Meaningful probability” of a China hard landing: Roubini A.N.R. sent this bit …

G.G. flagged this bit of government spending orgy news: Federal budget deficit on track to eclipse $1 trillion for third year. How long do they think they can continue to do this without destroying the U.S. Dollar? L.M.W. sent this: Why We Are Facing an Inflationary Depression Hathaway Confirms Gold to Trade in the Five Digits An interesting piece over at FOREX Crunch: We Have A Volunteer For Greek Losses Items from The Economatrix: Example How Gold Can be a Debt Protection China Warns US Debt-default Idea Is Playing With Fire US Hurtles Toward System Failure Death By Debt Global …

I predicted seeing ads once the base metal value of nickels hit two times their face value (“2X face”), but not this soon: BoxOfNickels.com. I’m confident that you can expect to see more such nickel entrepreneurs in the near future–especially once the base metal value exceeds 1.5 times face value. (7.5 cents for a nickel.) Speaking of changing valuations (in this case, deflation), have you seen the chart showing the change Bitcoin values in the past three months? It now takes more than $15 USD to buy one BTC and in a brief spike the rate got up past $30. …

Mr. Rawles: Is it too late to invest in precious metals? Do you still recommend Northwest Territorial Mint? In Christ, – Karen F. JWR Replies: No, it is not too late to invest, but you should watch the market carefully and buy during price dips. Yes, Northwest Territorial Mint is trustworthy.  But I’ve heard that they can develop a backlog of several weeks when the precious metals market is in a particularly frantic period.  Summers are typically slow for the precious metals market, so it is a good time to buy, both in terms of price and no worries about …

Several readers sent this piece, highlighted at The Drudge Report: China ratings house says US defaulting: report. “In our opinion, the United States has already been defaulting”. It is beginning, folks: German Rating Agency Feri Downgrades US Government Bonds: AAA to AA! George C. suggested this commentary from Doug Casey: Our Economic Future: From Best to Worst Case Sterling and Euro Fall on Economic Concerns – Gold Rises to Record £950.81 British Pounds an Ounce B.B. sent this: US Is Nearing Even Worse Financial Crisis: Jim Rogers Some other recent quotes from Jim Rogers: “Bernanke Is A Disaster” Who Will …

JWR,   I have read with great interest articles posted on your blog.  Scott’s article was a good read but left me scratching my head.  I am no math whiz but dropping an extra two tons onto a residential second floor seems a little unsafe.  I know Scott did not mention the overall room dimensions or joist sizing, or extra precautions he took, but overall I thought a residential floor is generally rated to a safe load of 40 pounds per square foot.  For a 10’x12′ room that would be 4,800 pounds. A box of pennies is 3.25 inches tall, 4 inches wide, and …

SurvivalBlog’s Editor at Large, Michael Z. Williamson sent this: A Few Charts That Show Why Quantitative Easing Was A Miserable Failure That dreaded “D.” word is spoken again: Bullard sees debt default as big global risk. (Thanks to B.B. for the link.) A bit late to jumping on the band wagon: Traders Are Dumping Stocks and Buying Gold and Silver Reader Pierre M. suggested this: President Obama’s phony accounting on the auto industry bailout Bill J. sent this: Senators seek crackdown on “Bitcoin” currency. (JWR’s Comment: I’m not surprised to see Senator Schumer’s name mentioned…) Items from The Economatrix: Low …

Fed: Default would be dangerous; Fitch may cut rating. (A hat tip to Sue C. for the link.) The dreaded “D” word is spoken: China warns U.S. debt-default idea is “playing with fire” K.A.F. sent this interview of Peter Schiff: Lack of buyers may force Treasury to boost interest rates Reader J.B.G. spotted this: True Cost of Fannie, Freddie Bailouts: $317 Billion, CBO Says Reason # 4,386,662 to leave the Mickey Mouse State: California taps highest income taxpayers for more revenue. (A hat tip to Tom B. for the link.) B.B. spotted this: Federal Reserve Set to Implode Economy. Also …

Mr. Rawles,   After packing many rolls of nickels in .30 caliber ammo cans, I now use a much quicker storage method. Specifically, I discovered that I can place five cardboard boxes of nickels that I buy from the bank ($500) directly into one 20 mm ammo can. The five cardboard boxes fit perfectly in the can, with no extra room. I can load each can in only 1-2 minutes. The packed cans are heavy (maybe 115-120 pounds), and therefore difficult to move. So I usually position each can where I plan to store it before placing the boxes in it. I bought a bunch of 20 …

J.D.D. recommended this excellent video clip: Must See Tom Woods Speech. Woods is a very entertaining and thought-provoking speaker. Matt R. sent this: Will Germany and France stave off a Greek default? My Big Fat Greek Debt Default: Greece, the Global Perspective. (Thanks to Kostas for the link.) Courtesy of Pierre M.: Taxpayers Dollars Still Bailing Out Banks G.G. flagged this: Falling from housing peak: John McMonigle’s ride Items from The Economatrix: Consumers Borrowed More For 7th Straight Month Companies Pulled Back On Job Postings In April Stock Indexes Fall For 5th Straight Day OPEC Split Over Increasing Oil Production …

SurvivalBlog’s G.G. sent this: Bob Rodriguez: The man who sees another crash. Moody’s Warns Big Banks Of Possible Downgrades Don’t Hold Your Breath Summer job bummer: Teen unemployment 24 percent. (Thanks to G.G. for the link.) Items from The Economatrix: Treasury Continues to Dip into Retirement Accounts BBC HardTalk:  Jim Rogers Moody’s Threat of US Downgrade Departure from S&P’s Warning

B.B. was the first of several readers to send this article: China Has Divested 97 Percent of Its Holdings in U.S. Treasury Bills. here is a key quote: “Most of the U.S. national debt is made up of publicly marketable securities sold by the Treasury Department and I.O.U.s called ‘intragovernmental’ bonds that the Treasury has given to so-called government trust funds—such as the Social Security trust funds—when it has spent the trust funds’ money on other government expenses.” Talk about a Ponzi scheme! The Sky Is Falling, It Is Time To Panic And The U.S. Economy Has Fallen And It …