Category: Economics & Investing

Greece Credit-Default Swaps Surge to Record 2,189 Basis Points, CMA Says. Oh those derivatives, again. P.R.D. suggested this: Is the Fed Insolvent? Scott M. found a facebook page devoted to the logic of saving nickels: Stacking Nickels. IMF Cuts U.S. Growth Forecast to 2.5%. (Thanks to Steven M. for the link.) Adam B. sent this: Greek Bailout Leaves the French Unruffled While German Politicians Seethe Items from The Economatrix: Inflation Slows In May as Gas Prices Fall Eric Sprott:  We’re Headed Over a Cliff, Be Wary of Paper Assets Failure To Raise Debt Ceiling Could Result in Severe Market Disruption. …

Reader Sue C. sent us this: Don’t Look Now, But Stagflation May be Here KAF flagged this: Economy faces weaker growth, higher prices BG sent this from the WSJ: The Economy is Worse than You Think. Items from The Economatrix: Priced In Gold, The Median Home Price Is Down 80% Many Of Us Won’t Be Able To Retire Until Our 80s Worsening Greek Debt Crisis Sinks Stocks, Euro Late Credit Card Payments Hit Pre-Recession Levels

PG&E Hit Hard By Antioch Copper Thefts. (Thanks to K.A.F. for the link.) Digging Into the U.S. Budget: What We Spend, and How SurvivalBlog’s G.G. kindly sent three links: Jim Jubak: The Coming Global Financial Crisis Central Bankruptcy: Why QEIII Is Inevitable Number of U.S. Expatriates Continues to Soar Items from The Economatrix: Report Points to Lower Food Prices, More Hiring Mainstream Media Signals Economy Getting Bad Dr. Gary North: The Next Financial Crisis Zombinomics And Volatility

Loyal contributor C.D.V. sent this: US Housing Crisis Is Now Worse Than Great Depression Sovereign Man asks: What are the Social Implications of Economic Collapse? (Thanks to James C. for the link.) Nancy N. sent this: Roubini Says “Perfect Storm” May Clobber Global Economy. I love hearing mainstream market analysts go wild talking gloom and doom. C.D.V. sent this: Gold to Reach $5,000 Due to Supply Shortage: Report An exhaustive report by Standard Chartered predicts that gold will more than triple to $5,000 an ounce because of a lack of supply, not just because of a surge in demand that …

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 …