Category: Economics & Investing

From Zero Hedge: Meet The 171 Banks For Which The Margin Of Failure Is [As Little As] One Thousand Dollars B.B. recommended this post over at Seeking Alpha: Food Prices and Global Hunger Equal Riots, Civil Wars and Revolution Chris D. suggested this post: No Investment Goes Straight Up, Except in a Mania. John R. sent this: Despicable Lies, Delusional Economic Recovery, Hyped Unemployment Numbers  Also from John:   Mortgaging Our Grandchildren’s Future? That’s Being Optimistic! (Jeff Berwick in The Dollar Vigilante) U.S. Fiscal Meltdown in Spitting Distance: Laurence Kotlikoff. He has some excellent analysis of the current political grandstanding. The …

Mr Rawles, I was aware that pre-1965 [dimes, quarters, half dollars and dollars] are 90% silver, but I also learned that [some] coins made from 1965-1970 were made with 40% silver. My question is, is there any value to these coins, and are they worth keeping around due to their silver content? Thanks – Andrew A. JWR Replies: The 40% silver composition only applies to Half Dollars from those years. Surprisingly, they are still sometimes found in circulation. (In fact, more so than any other U.S. silver coin.)  Save every one that you can find! See the Coin Roll Hunters …

Using the Backyard Grill This Summer Just Got More Expensive. (Thanks to J.D.D. for the link.) Brent S. suggested an article by Robert McHugh: Silver and Gold Will Remain in Strong Uptrends Why Electric Cars are Really Coal Cars. H.M. sent us this: The foreclosure mess isn’t going away. Pierre M. and Chip W. both sent this: Oil could hit $200-$300 on Saudi unrest. Several readers sent this: Feds seek $7 Million in privately made ‘Liberty Dollars’. We are witnessing an absurd inversion of reality: The government, which now prints only worthless and irredeemable fiat, wants to seize Norfed’s genuine …

It has always been self-evident, but here are the numbers in chart form, to back it up: Purchasing Power of the Dollar Versus Gold. (Thanks to R.P.B.for the link.) David R. pointed me to this sobering statistic: In just the month of March, the US government spent $1.1 TRILLION dollars. Rick in Colorado sent this interesting interactive map link: Map The Meal Gap. Rick’s comment: This is why the average person needs to prepare. Note that for a family of four making $40,000 a year 1/3 of household are food insecure and this was in 2009! Foreclosure red carpet style …

A “must read” piece by Patrice Lewis, wherein she argues that useful tangibles are the only safe investment, as the Federal government approaches default or mass inflation: Drowning in debt C.D.V. suggested this: Selling America: The view from a bear’s chair. Also from C.D.V. come a link to some advice from Shawn Tully at Fortune that is about three years premature: Real estate: It’s time to buy again. Items from The Economatrix: A Hundred Municipalities Won’t Make It Out Of Debt Times Are Good For Silver Investors What’s In Your Wallet? “Skunked”:  Bill Gross On How “The US Will Likely …

Why Marc Faber Is Such a Bear. Dimon Says a Hundred Municipalities in U.S. Won’t ‘Make It’ Out of Debt Vacant California – California has over 1 million vacant housing units increasing 54 percent in one decade G.G. sent us this: American’s feather nests with silver Eagles Items from The Economatrix: Solar Sunspot Activity and the Financial Markets   13% Of All US Homes Are Vacant US Economy In The Greater Depression Confirmed By GDP Data       A List Of 28 Things That Will Make You Think There Is Something Seriously Wrong With The Country Jim Rogers Predicts …

Dear Mr. Rawles: I have read your excellent blog for years and truly enjoy the unique mix of practical advice and news you provide that is not often found elsewhere. I wanted to comment on your recent article titled,  "Precious Metals–When to Begin Reducing Your Holdings."  Your article was quite thoughtful and I would encourage anyone who failed to read it when originally posted on March 29th to go back and read it now. There was a minor point that I did disagree with.  Near the end of the article you wrote, "Here in the United States, pre-1965 silver quarters …

B.B. suggested this: Chart of the Day: Silver Coin Mania. Clearly, more folks are now distrusting the U.S. Dollar and hedging into tangible silver. We’ve Become a Nation of Takers, Not Makers–More Americans work for the government than in manufacturing, farming, fishing, forestry, mining and utilities combined. D.I.W. suggested this over at the Secular Trends blog: Current Real Unemployment is 16% Foreign Banks Tapped Fed’s Secret Lifeline Most at Crisis Peak. Is this supposed to give me a warm, fuzzy feeling? Items from The Economatrix: Massive Capital Wave Approaches Gold MyBudget360:  Federal Reserve Silently Grows Balance Sheet to Approximately $2.75 …

Hi James, Just following up on my last letter about stacking nickels in the “Standing Shotgun Shell” configuration.  I’ve continued experimenting and have a few tips I’d like to add that might come in handy. Luckily, I’ve been able to order quantities of nickel boxes from my local bank [at face value] and have been making a studied process of stacking them, trying to improve with each box.  BTW, a cardboard box of nickels such as delivered by Brinks weighs 22 pounds.  I have figured out that by sliding the thumb in and pushing in towards the empty cardboard box, …

M.E.W. flagged this: Gross Echoes Buffett Saying Treasuries Have ‘Little Value’ on Debt, Dollar Greg C. spotted this: Ripples in Japanese supply chain will be felt here. Greg’s comment: “This will end up being a major case study in the weaknesses of “Just in Time” (JIT) delivery.  It won’t be just car parts that will be affected as you will see when you read the article.” More economic suicide news from Zimbabwe: Implats, Aquarius fall on Zimbabwe indigenisation news. Items from The Economatrix: Gold, Silver Now Legal Tender in Utah. (But is is too bad that Utah also recently caved-in, …

Pierre M. was the first of several readers to send this: Wal-Mart CEO Bill Simon expects inflation. Reader Joe P. noted: “I can’t think of any private or government entity in a better position to recognize inflation than Wal-Mart.” Reader Mark F. reports: “I went to our location Tractor Supply Store this week to buy some T-posts to put up some more fencing for my livestock and I got a surprise. Last May I paid $3.69 for 6 foot posts. Those same posts are now $4.79 apiece.” Food Commodities Surge Seen Swamping Consumers with Inflation. (Thanks to Bryan E. for …

Latched on to the Federal teat: A First in American History: 2011 Federal Aid Set to Overwhelm State General Funds. This is the master stroke of Federal statism. If the 50 states get more than half of their revenue from the Federal government, there is no way that they can forcefully insist on 10 Amendment rights. The U.S. Mint has set April 4th as the deadline for public comment on new metallic compositions for U.S. coins. Clearly, the days are numbered for U.S. 5 cent pieces (“Nickels”) that are 25% nickel and 75% copper. Stock up! Pierre M. mentioned this …

Food Inflation Kept Hidden in Tinier Bags. “As an expected increase in the cost of raw materials looms for late summer, consumers are beginning to encounter shrinking food packages.” (Thanks to C.D.V. for the link.) Yuri L. suggested this, over at Frugal Dad: Nine Ways to Prepare for Food Inflation Reader Tony B. sent this: No One Cries for Argentina Embracing 25% Inflation as Fernandez Leads Boom Wow That Was Fast! Libyan Rebels Have Already Established A New Central Bank Of Libya Items from The Economatrix: Gerald Celente & Lew Rockwell:  Gold, Guns and Getaway Plans   Salivating at the …

I often get e-mails and letters from readers about precious metals, and most of them are wrong. Many of them were about silver: In 2001, when I formally called the bottom, for silver, I got taunting letters. Those naysayers claimed that silver was heading down further, perhaps to $3 per ounce. In 2005, I started getting whining “I missed the boat” letters. That was when the silver bull was still just a calf. People have continued whining, ever since. In 2008, when silver was $9.80 per ounce, I got my first “this is the top for silver” letter. I’m still …

Do you remember my warnings about “creative” ways that legislators might find to solve budget crises? Brace yourselves. CBO: Taxing mileage a ‘practical option’ for revenue enhancement. (A hat tip to J.H.B. for the link.) My cousin in England sent this: Proof That Gold Is Not a Bubble Gonzalo Lira: How Likely is QE-Three? (Lira thinks either that there will soon be be either more monetization or seizure of IRAs and 401(k)s. G.G. flagged this: Morning Note: Gold Replacing Dollar as World’s Reserve Currency? Also from G.G.: Buffett Warns: The Dollar Will Decline Items from The Economatrix: Stocks Falter Despite …