Category: Economics & Investing

Twenty years ago a friend of mine came to me and said I should be buying silver. He took the time to show me what he’d bought with a small inheritance he’d received that year: 900 troy ounces of silver rounds. He packed them up in a couple of .50 cal. ammo cans and  spent the next 20 years moving them around [buried caches in] his back yards. Back then he paid something under $4 per ounce for an investment total of under $3,600. Twenty some years ago I had at least a hundred other things I could have done …

Mobius Says Financial Crisis ‘Around The Corner’ (Not surprisingly, Templeton says that it is derivatives that are to blame.) Over at The Daily Bell: The Aden Sisters on Money Metals, Where the Market Is Headed and Why Gold Is Going Up Thanks to William B. for sending this: Ireland may need more EU/IMF cash Reader Paul B. spotted this commentary: Gold signaling hyperinflation? Neal E. sent links to a pair of great articles over at Zero Hedge: Chart Of The Day: Currency Devaluation, Old School Style and Charting The Non-Linearity Of Hyperinflation, And Predicting America’s Future Courtesy Of Ancient History. …

Markets Fret About Euro ‘Slow-Motion Car Crash’ U.S. Debt Ceiling Is Like ‘Playing With a Tactical Nuclear Weapon’: Former Comptroller General L.M.W. sent this: Why a Hedge Fund Comprised of Junior Congressional Democrats Should Outperform the Market By 9%. L.M.W.’s comment: “I’ll bet you didn’t know that it’s legal for Congresscritters and Senators to use inside information to play the stock market. Did you? Yes, indeed, acting on inside information, which would get anyone else caught doing it arrested and charged with a felony, is perfectly legal for the people who write the rules. Interestingly, junior Democrats seem to be …

USPS warns of default on retiree benefits. Recession-proof waste management industry: Down in the dumps. (Thanks to Haiti Guy for the link.) Comin’ this summer… $5 gas Items from The Economatrix: US Consumers in Spending Retreat 20 Questions to Ask Anyone Foolish Enough to Believe the Economic Crisis is Over Second Biggest Weekly Drop Ever in Treasurys Held in the Fed’s Custodial Account as Foreigners Dump Why Gold is Going Higher

The ultimate tangible? Currency Devaluation in Belarus Causes a Run on Toilet Paper (Thanks to G.P. for the link.) Housing Apocalypse Tomorrow – 675,000 homes in foreclosure have made no payment in over two years. Consumer spending, income drop as inflation accelerates. (Thanks to C.D.V. for the link.) Items from The Economatrix: Gas Tanks Are Draining Family Budgets Rising Consumer Confidence Lifts Stocks April Consumer Spending Shows Weak Gain Nine Ways That The World Has Gotten Even Crazier in May 50 Things Every American Should Know About the Collapse of the Economy Glut of Foreclosed Homes Threaten Market US Worse …

Peter Schiff: “You are going to see riots in the streets”. (Thanks to Bob G. for the link.) Fed Gave Banks Crisis Gains on $80 Billion Secretive Loans as Low as 0.01%. (Thanks to Pierre M. for the link.) C.D.V. forwarded this item: Foreclosure sales slow, but remain very high Huge backlog of distressed properties means any housing recovery is a long way away. Here is a brief quote: “Sales of homes in some stage of foreclosure declined in the first three months of the year, but they still accounted for 28 percent of all home sales — a share …

A foretaste of life in the U.S. in the near future?: Belarus devaluation spreads panic. On the same topic, Tyler Durden of Zero Hedge posted some commentary and a scary “hockey stick” currency chart: Welcome To Hyperinflation Hell: Following Currency Devaluation, Belarus Economy Implodes, Sets Blueprint For Developed World Future J.B.G. sent this: Greece risks ‘return to drachma’ World Bank Predicts the Demise of the US Dollar by 2025   Items from The Economatrix: Stocks Likely To Face Bumpy Ride Into Summer Gas Prices Dampen Memorial Day Vacations States Shorten Duration For Unemployment Benefits What Is Behind Europe’s Stock Market …

Ah, yes, the inevitable rush into tangibles: Belarus snaps up TVs, fridges as ruble plunges. (Thanks to Diana V. and Jay H. for the link.) QE2 was a bust. (A hat tip to John R. for the link.) Linda U. sent this report from Texas: Record farming, ranching loss seen. (Stock up on cotton socks and jeans, since cotton prices are likely to skyrocket in 2012.) Why The “Is QE 3 Coming?” Debate Is A Moot Point. (Thanks to John R. for the link.) Items from The Economatrix: Eurozone Woes May Boost Gold Foreclosure Flood May Not Have Crested Yet …

Money Magazine: Another Economic Crisis Coming. (Thanks to J.B.G. for the link.) Seniors Have Lost 32 Percent of Their Buying Power Since 2000 Reader Robert H. recently found this message waiting for him when he re-visited an Internet shopping site, after a three month absence: “Please note that the price of Great Lakes Select Honey, Clover, 32-Ounce Bottles (Pack of 3) has increased from $16.75 to $23.08 since you placed it in your Shopping Cart. Items in your cart will always reflect the most recent price displayed on their product detail pages.” (That is a 37% increase!) Items from The …

Matt R. sent this: Greece default fears rise as reprofiling talk flounders Deputies confiscate 250 pounds of copper during exchange Bank of America to give away houses. (Thanks to KAF for the link.) Kirk Elliot puts the unemployment rate in proper perspective. Items from The Economatrix: Greece on Verge of Defaulting What Destroyed Rome Was Its Unfunded Government Employee Pensions US Stocks Plunge On European Debt Worries What Happens When Greece Defaults BoE Chief Warns Of More Tough Times

Boosters suggested a 2009 documentary that is now available free on YouTube: Why Gold & Silver?. This is a great video that features commentary from experts like Mike Maloney, Robert Kiyosaki, Congressman Ron Paul, David Morgan, Jason Hommel, James Turk, Bill Murphy, and even the irascible Mogambo Guru (Richard Daughty). BTW, this is a great video link to send to your relatives who scoff at hedging into precious metals and other tangibles. David D. liked this piece by Paul Krugman: Making Things in America Our friend Kevin S, sent this from Lew Rockwell’s site: Libertarianism versus Statism Also from Kevin …

Reader C.D.V. suggested this article: World Bank Sees Dollar Reserve Status Ending Over Next Decade. E.M.B. forwarded this: Death Derivatives Emerge From Pension Risks of Living Too Long Richard Koo Explains Why an Unwind of QE2, with Nothing to Replace it, Could Lead to the Biggest Depression Yet Check gambit makes Coos Bay [Oregon] man a felon. (Thanks to D.B.C. for the link.) Items from The Economatrix: Home Sales Fall Despite Uptick in First Time Buyers Ahead Of The Bell:  Leading Indicators Seen Rising Predicting the Future Gold Price Misses the Point Senate Bill Would Limit Savers Using 401(k)s as …

Photo of an Obamaville. Loyal contributor John R. sent us a capacious pile o’ links: Paul Ryan Speaks on the “Catastrophic Trajectory” of US Debt – ZeroHedge Our Peculiar State of Suspended Animation – Charles Hugh Smith What Will Happen When QE2 Ends? – Dave Cohen Obama’s debt-limit truth-twisting – Stephen M. Meister Kicking the Can to the End of the Road – John Mauldin      Social Security ‘Trust Fund’ to Add $5 Trillion to Debt – Investors.com Items from The Economatrix: Stocks Follow LinkedIn IPO Higher Commodity Rally Sends Stock Indexes Higher Central Banks Snap Up Gold in First …

More than a dozen blog readers suggested this must read piece: Hedge Farm! The Doomsday Food Price Scenario Turning Hedgies into Survivalists. Here is a quote from the article: “When asked if this is an end of the world scenario, the hedge-fund manager replied, “It really is. I tell my fiancée this from time to time, and I’ve stopped telling her this, because it’s not the most pleasant thought.” Reader Stephen M. wrote to mention: “One of my favourite indicators as to economic health is the Baltic Dry Index.  It is simply a measure of the shipping costs to move …