Category: Economics & Investing

The truth behind the “budget slashing” rhetoric: Debt Jumped $54.1 Billion in 8 Days Preceding Obama-Boehner Deal to Cut $38.5 Billion for Rest of Year If you thought that the systematic looting of the Social Security trust fund was bad, then read this sad portent of future thievery: Treasury may borrow federal retirement funds in debt emergency. (“No cause for alarm. Nothing to see here, move along…”) Over at The Daily Bell: The Story of Entitlement Addiction Items from The Economatrix: Shopper Spending Surprisingly Strong in March (Monetization as stimulus?) Ron Paul:  Gold, Commodity Prices “Big Event” Signaling Economic Collapse …

Inflation Watch: Pierre M. suggested this: Rush to Use Crops as Fuel Raises Food Prices and Hunger Fears U.S. Postal Service to Hike Rates on April 17th. Meanwhile, across the pond: Royal Mail Stamp Prices to Rise in April 2011. (A 13% increase.) Husqvarna Announces Price Increase (an average of 15%) Multiple crop failures are pushing cotton prices through the roof!

Avoiding Federal Government Shutdown: The agreement included some $38.5 billion dollars of extra spending cuts. We are swimming in red ink and all they can agree to is a miniscule cut? Do they think that people will be fooled by the “big number” of $38.5 billion? They will never balance the budget! The congresscritters have doomed us to a Dollar Disaster of epic proportions. Frequent content contributor C.D.V. sent us this: U.S. Dollar Crisis Looms, Spike in Interest Rates Following End of QE2 Also from C.D.V.: Toxic Dollar: Why Nobody Seems to Want US Currency (Finally, the mainstream media is …

Jim: We’ve previously discussed in SurvivalBlog that coins are usually untouched by a nation during remonetization, meaning a significant recovery in purchase value after such event. What is the likelihood the US would keep the dollar coins in circulation, given their low regard by most consumers?  This would mean the coins would avoid remonetization, be worth a “new” dollar each, offering a significant advantage. The Fed’s only real options would seem to be to attempt to collect them all, or issue notices of their reduction in value/expiration as legal tender.  Neither sounds like something they’d want to do. – Michael …

Silver and gold certainly had a solid trading week. When I last checked, spot gold was at $1,475.10 per ounce (an all-time high) and silver at $40.93 per ounce! Silver has advanced almost $25 per ounce in the past 12 months and it was $26.75 per ounce as recently as January. In Housing Market’s Suspenseful Story, the Tell-Tale Stat is Inventory Paul Tustain: Gold Is Sending A Signal That The Monetary System Is In Grave Danger. (Thanks to John R. for the link.) US Dollar Breaks – LOWER, (Again, 72 is the magic number to watch for on the US …

James C. sent this: The Countdown Has Begun for the Eurozone Breakup J.B.G. spotted a great piece that quotes John E. Silvia, chief economist at Wells Fargo: US Going Same Route as Greece, Portugal: Economist Malls Face Surge in Vacancies (Highest rate in 11 years.) Raymond V. sent this: Congress Faces $2 Trillion-Plus Debt Decision Items from The Economatrix: World Economy Facing Numerous “Black Swans”, Says IMF US Jobs Report:  Take This Job And Shove It Silver Hits 31-Year High As Demand Increases Up To Our Eyes (The Mogambo Guru) Oil Settles Higher, Tops $109 On Nymex Unemployment Falls In …

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, …