Category: Economics & Investing

Do you remember my warnings about “creative” ways that legislators might find to solve budget crises? Brace yourselves. CBO: Taxing mileage a ‘practical option’ for revenue enhancement. (A hat tip to J.H.B. for the link.) My cousin in England sent this: Proof That Gold Is Not a Bubble Gonzalo Lira: How Likely is QE-Three? (Lira thinks either that there will soon be be either more monetization or seizure of IRAs and 401(k)s. G.G. flagged this: Morning Note: Gold Replacing Dollar as World’s Reserve Currency? Also from G.G.: Buffett Warns: The Dollar Will Decline Items from The Economatrix: Stocks Falter Despite …

G.G. sent this: End of the Dollar? Some severe gloomage, over at Zero Hedge: The Dollar Will Collapse Within 3-4 Months Dr. R. highlighted this item: Connecting the Dots … Grain Shortages & Food Inflation Quietly Accelerating Due to Perfect Storm Greg C. flagged this: Fears rise that Japan could sell off U.S. debt Items from The Economatrix: Of particular interest to SurvivalBlog readers in the hinterboonies: Postal Service to Cut 7,500 Jobs, Close Offices   Asian Shares Higher After Wall Street Closes   US Experiencing Uneven Job Growth Across States   Oil Hits Highest Levels Since Recession   Private …

Dear James Wesley, I have been wanting to get to a bank to make arrangements to buy nickels and pennies, but my normal workday and duties prevent me.  Today I was finally able to do so. I was told that the pennies came in “boxes” of $25 and the nickels in “boxes” of $100.  The banker said he had to check on a recent fee hike. He came back with an a $0.20 per roll delivery fee. But then he offered a “free” alternative.  Their coin counting machine bags [loose] pennies with $50 in a full bag and $200 of …

John Rubino: Commercial Real Estate on Borrowed Time? John R. suggested this piece by Bob Chapman: The Road of Inflation Will Only End in Tears G.G. flagged this: Moody’s Warns Britain Over Triple-A Credit Rating Also from G.G.: Unsustainable budget threatens nation. Items from The Economatrix: $105 Oil:  It’s The Perfect Storm Central Banks Shedding Dollars, Buying Gold   Silver Surges Over $37.25 on Way to Record $50, Gold to $5,000 in 3 To 4 Years? Sprott Putting Clients in Gold and Silver Ahead of Prolonged Global Uncertainty   Gold Rises To Record; Copper Rallies Metals Stocks “Instead of looking …

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 …