Category: Economics & Investing

Jim Willie: QE2: The Road to a Gold Standard North African Turmoil Could Rocket Crude to $220 John R. recommended this article: Middle East Chaos: What To Learn And What To Expect Items from The Economatrix: Crude breaches $119 in frantic trading Market Jitters As Oil Price Heads For The Sky   UK:  Petrol to Hit £6.50 a Gallon; Mideast Crisis Cuts Supplies   (That is $10.52 USD, folks!) US House Prices Plumb New Depths   Video of Eric Sprott Speech: The Government Lied…There is No More Silver!

Trapped: The Fed Has Painted Itself Into a Corner Charles Kadlec reports at Forbes: Higher Inflation Is On The Way. Wegman’s freezes prices on 40 products. (JWR Asks: How long can that last?) Cost of…everything…about to go up Inflation-hit India gains new price measure tool

$4 Gasoline? Definitely in California, but Maybe Not for Everyone Else US House Prices to Continue Falling: Economist. [JWR Adds: That is, until mass inflation kicks in, and makes us all millionaires.] Englishmen warned: House prices ‘to fall by 20%’ De Borchgrave: Mideast $400 Oil Imminent With Mideast Upheaval John R. suggested this piece by Bob Chapman: Public debt: unsustainable and simply unpayable Items from The Economatrix: On-going Overnight Short Squeeze Takes Silver to Fresh 31-Year High   Credibility Blown (The Mogambo Guru)   Silver Bankers May Be Sitting On Big Derivatives Losses And The Fed May Be Funding Them …

Thor sent this bit of news on the global food supply: Planet could be ‘unrecognizable’ by 2050, experts say Luis (At Sea) sent us this link to Seeking Alpha: Case-Shiller: Home Price Declines Continue. Luis notes: “Notice that Washington D.C. had the only positive number, and even that was marginal.”   Several Items from Kevin S.: A Tipping Point Is Nearing   Food/Financial Crisis of 2011   The Collapse of America’s Labor Force   Items from The Economatrix: How Much More Demand Can Silver Handle?   Despite Oversupply, US Gasoline Prices Leap   Oil Surges 6% as Libya Tension Intensifies …

Dear Mr. Rawles, Regarding people eventually mailing U.S. nickel [5 cent coins] in bulk, you had asked: “Is there a box manufacturer that makes a sturdy corrugated cardboard box that fits tightly into a Medium size Priority Mail Flat Rate corrugated cardboard box?” At ULINE you can get a box to fit nicely inside the corrugated Medium Flat Rate Box (“FRB1″, with dimensions 11″ x 8-1/2″ x 5-1/2”). It is item #S-4517. It measures 10″x8″x5″. These boxes cost 54 cents each in lots of 25. (OBTW, leave it to the government to make two “medium” flat rate boxes. The longer, …

The short squeeze in silver that I recently mention seems to be on, in earnest. Check Monday’s spot silver chart. That is a 31-year high. KAF sent us a link to a great piece by Patrice Lewis over at WorldNetDaily: Connecting the dots to anarchy. (SurvivalBlog readers will recognize Patrice Lewis as the editor of the excellent Rural Revolution blog.) Companies Raise Prices as Commodity Costs Jump. (Thanks to Daniel S. for the link.) Anthony S. sent this sign of the times: Pan American Silver Shifts Assets to Canadian Dollars John R. suggested this: Six Charts Which Prove That Central …

Along The Watchtower reports on the COMEX‘s severe shortage of physical silver for delivery, amid strong open interest (OI) for March contracts: Wow! If a higher than normal percentage of buyers demand delivery, then the market will implode. There is already short squeeze in progress. The COMEX governors are likely to resort to drastically raising margin requirements to near 100% in an attempt to cool the market. (As precedent, they did this back during the Hunt Brothers silver short squeeze, three decades ago. Silver was then approaching $50 per ounce, and the COMEX hit the brakes hard.) A repeat of …

Reader C.D.V. mentioned this: Inflation: It’s Here. “This is an important topic because with an expanding money supply, one would expect to see price inflation, yet the official statistics reveal no substantial price increases. And that begs the question: Why not?” Deutsche Bank on the Imminent Inflationary Outbreak in America. (Thanks to G.G. for the link.) Why Are Food Prices Going Crazy? Cotton hits $2 a pound Cotton values surge owing to increased demand Following Beijing’s lead, news from Taipei: Prosecutors Office vows to crack down on food hoarding. (Hmmm… Could it be that double-digit inflation is on the horizon?)

From Peak to Valley. Dr. Housing Bubble reports: Beverly Hills real estate selling for 1989 price levels. Home sold for $920,000 in June of 1989 and has a pending sale at $920,000 in 2011. [JWR Adds: So much for oft-touted “buy and hold” strategy! Oh, by the way, how much did the owner(s) of that house cumulatively pay in mortgage interest, property taxes and insurance, for those 22 years? Doubtless somewhere north of a million bucks. And how much has the purchasing power of the Dollar declined in those 22 years? So… Cui bono?] J.B.G. sent this: Government Has Borrowed …

Jim, Thanks for the blog. I’m a huge fan, and your blog is literally a rock-solid anchor for me and my family during all this turmoil. I took “Rick in Kentucky’s” claim that he could get $190 worth of nickels into an ammo can as a challenge. My ammo is flat green can has yellow paint on it which reads as follows: “200 CARTRIDGES, 7.62 MM, NATO 0 M80…” I took out a full can that I have where the coins are arranged laying down, dumped out the rolls, and started stacking vertically as described by Rick. It was quite …

Loyal reader “OSOM” (“Out of Sight, Out of Mind”) pointed us to an eloquent piece by Bill Bonner (of The Daily Reckoning) titled: “Where to Be When Black Swans Appear” OSOM’s comment: “This is a great introductory article for those folks who don’t yet read SurvivalBlog.” Daniel H. flagged this evidence of flight from the U.S. Dollar: China sells $34.2bn of US treasury bonds. Jon R. mentioned this at The Daily Reckoning: The Food Crisis is a Dollar Crisis The latest FDIC Friday Follies: Regulators shut two small banks in Georgia; makes 20 US bank failures this year. (Thanks to …

Mr. Rawles:   Like the ridiculous commercials touting Internet stock trading in the recent past, today the sheeple are treated to commercials extolling the wisdom of investing in gold, all the while the economic world is apparently heading for a meltdown of epic proportion.  As an ardent fan of your novel “Patriots” and a daily reader of your site, I must question the wisdom of investing in either physical gold or rolls of nickels as one will not be able to eat either. And frankly, if someone appears at most doorsteps offering either as payment for goods or services after the …