Category: Economics & Investing

John R. sent a link to some great analysis by Rob Kirby: Amaranth Kill Shot: Collateral Damage in a 78 Trillion Dollar Derivatives Book Compliments of J.P. Morgan Chase Also from John, a piece by Claus Vogt: Two Collapse Scenarios Michael P. suggested the latest ShadowStats report: Hyperinflation – 2011 (Updated) Scott M. recommended this segment wherein Neal Cavuto interviews Former Treasury Chief Restructuring Officer Jim Millstein: Debt Ceilings and the Risk of U.S. Default Hedge fund assets top $2 trillion for the first time. (Thanks to Mark W. for the link.) Items from The Economatrix: Oil Settles Above $111 …

At The Daily Bell: Dollar Replacement Beat Goes On … and On Downgrading of U.S. Credit Rating Just Tip of the Iceberg John R. suggested this: Debts Just Don’t Disappear Also from John, some commentary by Gordon T. Long: Bernanke’s QEx Box Meredith sent this: It’s Official: China Will Be Dumping US Dollars Items from The Economatrix: Unemployment Falls in Two-Thirds of US States New Home Construction Increases 7.2% in March Fears of Greek Debt Default Hit Markets Investors Drove Home Sales Up 3.7% in March. (Yes, but for a reality check, look at this price chart.)

J.D.D. flagged this: That’s pricey: 13 items that cost more, or will Latest global food price figures. India food inflation eases slightly. (Now down to 9.18% , annually.) 11 Prices That Will Rise Along With Your Gas. Which Would you Steal, Cash or Groceries? (Thanks to Scott M. for the link.)

I’m sure you’ve noticed that US Dollar Index is down to 74.4, spot gold is up to $1,507 per ounce, and spot silver is at $45.89. As I’ve been warning you since September of 2005: Get out of U.S. Dollars and into useful tangibles! If you feel that you’ve missed the boat on precious metals, then buy guns and common caliber ammunition while they are still affordable. I suspect that they won’t be affordable (in U.S. Dollar terms) in a couple of years. Also, be forewarned: The COMEX Governors are soon likely to slam on the brakes on the precious …

The convenient fiction that the U.S. is worthy of a “AAA” credit rating continues: S&P Cuts U.S. Ratings Outlook to Negative. How long can Uncle Sam dog-paddle in a sea of red ink? (Thanks to M.E.W. and several other readers for the link.) Deborah B. sent this: U.S. Taxpayers on the Hook for Portugal Bailout Items from The Economatrix: Builder Outlook Falls Ahead of Spring Season Poll:  US Economy Improving Despite Global Events. (If they sprinkle around enough hundreds of billions in quantitative easing funny money, it has to have some impact on the economy…) temporarily.) Morgan Stanley Defaulted On …

AmEx (American Ex-Pat): suggested this: Case Shiller 100 Year Chart (2011 Update). JWR’s Comment: Methinks house prices still have a lot farther to fall. Unless you find that “perfect” retreat property, don’t buy into a falling market! Carl T. sent this: Losing 84 Cents on Dollar Reveals Runaway U.S. Public Pensions John B. suggested: The Real Silver High China trims holdings of US securities in February. Sometimes it is these “minor” news articles that speak volumes. (Thanks to G.G. for the link.) G.P. recommended this piece at the NIA web site: The Truth About Silver and Inflation Items from The …

C.D.V. sent us a link to a Zero Hedge piece: Jobless Claims Huge Miss to Expectations of 380K, Print at 412K, Previous Revised Upward, Core PPI Higher Than Expected Also from C.D.V.: Zoellick Sees Economic Risks From Food Prices, Debt, Inflation. In related news: World Bank president: ‘One shock away from crisis’. (Thanks to Mark W. for the latter link.) Pierre M. was the first of several readers to forward this link: More Americans leaving the workforce. John S. highlighted this one: Banks Face $3.6 Trillion ‘Wall’ of Debt: IMF J.H. was the first of several readers to mention this …

U.S. Companies Shrink Packages as Food Prices Rise. Reader Bryan E. wrote to mention: “Over the weekend we had visitors who are in the wholesale food distribution business. They were relating that they had experienced a 14% increase in wholesale food prices during just the month of March. Here are some examples: Item Size March 1st Price April 1st Price Sugar 55 lb. $33 $37 Flour 50 lb. $11 $16 Butter 30 lb. $74 $91 Margarine 30 lb. $17 $24 Catfish 15 lb. $54 $89 Cheese 42 lb. $2.55/lb $2.91/lb Restaurateurs are greatly concerned about how they are going to …

Reader J.B.G. suggested this article: World Bank: Food prices have entered the ‘danger zone’ C.D.V. sent this: Chris Martenson: Insolvent and Going Deeper By way of the Fierce Finance e-newsletter, I found this: Is Goldman Sachs Too Big to Fail? T.L.B. liked this one: What The Silver Vigilantes Understand That You Probably Don’t (Arithmetic, Human Nature and other Stuff) From my friend Bob G.: 20 Signs That A Horrific Global Food Crisis Is Coming Items from The Economatrix: US Burning Economic Candle at Both Ends Feds’ Exit Doors Close:  Inflationary Spiral Ahead Keeping Capital In A Depression Commodities Plummet On …

I’m sure that most SurvivalBlog readers watch precious metals prices closely. Friday on the COMEX was amazing: Spot gold at $1,486.40 per ounce and spot silver at $43.05 per ounce! At this point, it is best to wait for a big retracement before buying any more. Big banks are government-backed: Fed’s Hoenig Reader G.P. suggested this Daily Mail article: $5 gas by summer? Prices near $4 a gallon as frugal Americans cut back at the pump (and some even start stockpiling food) Goldman Sachs Calls the Top in Oil and Metals: Clients Advised to Close Positions. JWR’s Comment: Given the …

Michael Z. Williamson (SurvivalBlog’s Editor at Large) mentioned this chart: The U.S. Misery Index, showing unemployment and inflation. Note that the numbers for the last 16 years are artificially low, because the back room boys have been monkeying with the inflation statistics. (They have been made artificially low, by the advent of hedonic adjustments.) Reader RJK wrote: “Jefferson County, Alabama will be bankrupt by July of 2011 and the bankruptcy will exceed that of Orange County, California.  The county is going bankrupt because the county commissioner engaged in [derivative] interest rate swaps that exceeded the level of debt. He and …

JWR: Regarding the article “Some Investment Options for the Prepper”, K.P. suggested: “Real Estate Rentals – Buying real estate now? Are you crazy? No, not at all.” No, K.P. isn’t crazy, but I believe that he is uninformed. For many decades I have been bullish on real estate, but the rules have changed, and this time those changes are permanent and come with very serious consequences for those who hold a mortgage. Details of “The forever mortgage” were quickly spelled out, and then any information of “The forever mortgage” disappeared as quickly as it appeared. Real estate is great and …

Reader Linda U. sent this: Five Things that Will Happen to You When America Goes Bankrupt Pierre M. spotted this: Faux job numbers could lead to real trouble G.G. suggested this piece: How Safe Is Your Roth IRA? Also from G.G.: Charles Plosser and the 50% Contraction in the Fed’s Balance Sheet G.P. recommended this New York Post article: Taxpayers foot $850M bill for Wall St.’s pension fees Items from The Economatrix: Stocks Edge Higher on Better Economic Data Fed Survey: US Economy Improves in Spring Oil Falls as Hopes Grow for Libyan Cease-fire Gold Advances to Record on Weakening …

Ponder the implications: Iceland voters reject plan to repay bank debt. (Thanks to Pierre M. for the link.) Loyal content contributor C.D.V. sent this: IMF Cuts U.S. Growth Forecast on Oil, ‘Lackluster’ Jobs Pace Over at Fierce Finance: MERS stokes local controversies. Some interesting observation on global currency moves, over at Malthus University: Update from INET. Reading back through the thread of of posts makes it clear that The Powers That Be (led by George Soros) may have plans for a new global currency. Meanwhile, over at The Daily Bell, we read: IMF Plots Role as World’s Central Bank? Items …