Category: Economics & Investing

Jeff in Virginia and Yishai both mentioned this: WikiLeaks cables: Saudi Arabia cannot pump enough oil to keep a lid on price. Count this as further evidence that Peak Oil is reality. Michael Pollaro writes in Forbes: America, poised for a hyperinflationary event? Air Force Dad sent us this: US Dollar Index: Momentum selling could be swift and steep. As Quantitative Easing (monetizing the National Debt) continues, look for plenty of downward momentum in the USDI. C.D.V. sent: 10 Ways Weather is Wreaking Havoc on the Global Economy Items from The Economatrix: 9% Unemployment Rate is a Statistical Lie   …

As I’ve mentioned before in SurvivalBlog, U.S. Five cent pieces (“Nickels”) should be considered a long-term hedge on inflation. I recently had a gent e-mail me, asking how he could eventually “cash in” on his cache of Nickels. He asked: “Are we to melt them down, or sell them to a collector? How does one obtain their true 7.4 cents [base metal content] value?” My response: Don’t expect to cash in for several years. I anticipate that there won’t be a large scale speculative market in Nickels until their base metal value (“melt value”) exceeds twice their face value (“2X …

The Daily Bell ran this interview: Richard Maybury on the Collapse of the Anglo-American Empire and What It Means for You Eric K. sent this: China Raises Rates to Counter Accelerating Inflation. Eric’s comments: “Three things of note in the article: 1.) They mention a report due next week that will show a 5.3% increase in January for consumer prices. 2.) They are starting a campaign to crackdown on speculation and hoarding. 3.) The Chinese inflation is largely driven by rising food costs. Their formula for calculating their inflation is different to the one used to calculate ours. For one, …

John R. flagged this: Egypt’s Super-Rich Begin Moving Their Money to Switzerland Also from John comes a bank run news article: Egyptian Banks Open, And The Government Is Forced To Use Cargo Planes Full Of Cash Mal sent us this: Why You Need to Own Nickels, Right Now Reader M.B. highlighted this one: South Korea must prepare for food crisis Bob Chapman: Almost a Total Dollar Devaluation By The Fed In his video blog, Peter Schiff warns of rapidly-rising bond yield rates. Andy A. suggested this: Silver in complete backwardation

Avalanche Lily spotted this: Report Card on Obama’s First Two Years. Those commodity inflation numbers look very troubling. What we are now witnessing is not so much commodities going up as it is the U.S. Dollar going down in purchasing power. If you haven’t done so already, then start shifting out of Dollar-denominated investments and into tangibles! Don’t overlook buying long term storage foods as both a hedge on inflation, and as a survival reserve for your family for times of scarcity. Analyst Warns of 2015 Bank Crisis Amid ‘Upbeat’ Davos. “The fundamentals haven’t been addressed at all,” Wilkinson, a …

Companies Stock Up as Commodities Prices Rise. (This sort of hedging can of course start a snowballing effect.) Why Global Food Price Inflation Really Matters   Reader B.B. highlighted this: As World Becomes Zimbabwefied, Cotton Futures Surge 17% In One Month Treasury TIPS: A Looming Disaster for Small Investors Inflation ‘Higher Than Official Statistics Reveal’. (An interview with Marc Faber.) Supermarket surprise: smaller servings, same price. Bond Market Flashes Inflation Warning: Jump in U.S. Treasury yields signals market fear that Fed is behind the curve on prices

Darin H. flagged a blog piece by Chris Martenson: How long can the party in stocks last? Several readers mentioned this new video from Future Money Trends: Gold This Decade. Jim Rickards on Reserve currency, hot money and global food price inflation. (Thanks to David W. for the link.) Items from The Economatrix: Stocks Shrug Off Mixed Unemployment Reports   Unemployment Falls to 9%, Lowest Since 2009   Regulators Shut Three Small Banks; 14 Failures in 2011   Why You Should be Buying Gold as the Fed Prints Money   Jim Rogers:  Obama is Ruining America  

E.M.B. sent this: Coming Soon: A 300-Percent Increase in Foreclosures Smoot-Hawley Redux: As the Greater Depression continues along a parallel pathway with the Great Depression of the 1930s, Congress is about to commit the same blunder it made in 1930. (Thanks to C.D.V. for the link.) From Brett G. comes this link: Copper, Gold May Jump 30 Percent on Inflation Fear CoinWeek reports: Threat of Counterfeit Morgan Silver Dollars from China (Thanks to loyal content contributor R.D.F. for the link.) FDIC Friday Follies: Two more banks bit the dust on Friday, February 4th. (Both in Georgia.) Items from The Economatrix: …

More Investors Position for Possibility of U.S. Default Commentary from Spengler, over at The Asia Times: Food and Failed Arab States “First, they ignore you, then they ridicule you…” Now we seem to be getting to the ridicule stage: How Much is a Nickel Worth? More than Five Cents, Says Michael Lewis. (Thanks to Randy F. for the link.) I spotted this over at Zero Hedge: Ron Paul to Ask Fed Why After Trillions in Free Money, Unemployment is Still Sky High Items from The Economatrix: Bernanke Speech Helps Push Stocks Higher   Shoppers Shook Off the Snow in January, …

Episodes of Hyperinflation Reader Erik K. wrote: “I have to thank you for your post in SurvivalBlog on August 22, 2010 regarding a coming scarcity of sugar for 2011. After I read the article my wife and I went to our local big box store and purchased enough sugar to last our family for several years to come. We vacuum sealed the sugar in 5 gallon buckets using our iron, vacuum and mylar bags with oxygen absorbers. The buckets we used were free from a bakery and the cost of mylar and oxygen absorbers were $2.40 for each bucket. A …

‘Too Early to Declare Victory’ Fed May Not End Bond Buying. (Thanks to Jonathan C. for the link.) Phil F. flagged this: Which will it be, inflation or deflation? Maybe neither, maybe a run B.B. suggested: Bernanke, BLS Lie About Inflation: Dr. Doom Faber Former Treasury Secretary is A-Scared; Should You Be? Items from The Economatrix: Stocks Mixed a Day After the Dow Tops 12,000   Oil Prices Fluctuate On Egypt, Growing US Supplies   Winter Storms Expected to Slow US Economy Slightly   Gold and Silver Set to Resume Upward Trajectory   Donald Trump:  Things in the US Could …

Forecaster predicts the next crisis Bob Chapman: A Nation Exclusively Run For Corporate Interests. (Thanks to John R. for the link.) G.G. sent this: Egypt and the growing problem of global inflation. John also mentioned a guest post over at Zero Hedge: The Road to Madness Is Paved With $100 Bills Your Cheat Sheet to the 11 Countries Which Could Follow Egypt’s Lead Huge Winter Storm Threatens Wheat, Cattle Items from The Economatrix: Nine Signs that the Price of Oil is About to Soar Beyond $100 a Barrel   Less Than a 3% Drop in Asset Values Could Wipe Out …

Authoritarian governments start stockpiling food to fight public anger Nearly 11 Percent of US Houses Empty (Thanks to G.G. for the link.) Bank of America dealt another foreclosure blow in Nevada Items from The Economatrix: Energy Stocks Push Indexes Higher   Oil Prices Rise on Egypt Unrest, Brent Tops $100   Consumer Spending Up 0.7% In December   Egypt’s Economy Hurt as Travelers Avoid The Unrest   World Stocks Fall on Egypt Turmoil   Gold Premiums Highest Since 2004; China Stock Up

Egypt and Tunisia usher in the new era of global food revolutions G.G. flagged a piece by veteran investing guru Richard Russell (of Dow Theory fame): The Dollar Has Lost All Stability And Is Ready For A Crash B.B. sent this: Why the Smart Money is Trading Dollar Bills for Hard Assets Items from The Economatrix: All 100 Oz. Bars of Silver Gone in a Matter of Days Davos 2011: Roubini Says G-20 Has Become G-0   America Faces Biggest Deficit in History   Federal Reserve Concerned Over US Job Creation   UK Retailers Cut 10,000 Jobs Last Month   …