Category: Economics & Investing

12 Economic Collapse Scenarios That We Could Potentially See In 2011 J.D.D. recommended this by Charles Hugh Smith: Social Security in far worse shape than you think Pierre M. was the first of several readers to send this: A Path is Sought for States to Escape Their Debt Burdens. (That “path” is declaring bankruptcy and defaulting on their pension obligations!) Meanwhile, we read: DeMint: There Will Be No Bailout for the States. Social Insecurity: Inside the ‘Trust Fund’ Illusion Rick Ackerman: Bullion shorts in over their heads, says our man in London Items from The Economatrix: Home Sales Hit 13-Year …

Mark T. suggested: No Surrender on Debt Ceiling. Here is a key quote: “…as one senior Chinese banking official recently noted, in some ways the U.S. financial position is more perilous than Europe’s. ‘We should be clear in our minds that the fiscal situation in the United States is much worse than in Europe,’ he recently told reporters. ‘In one or two years, when the European debt situation stabilizes, [the] attention of financial markets will definitely shift to the United States. At that time, U.S. Treasury bonds and the dollar will experience considerable declines.’” Frequent content contributor Sue C. sent …

‘Explosive’ Food Prices the Biggest Risk: Analyst Gallery: Your favorite products – now 20% smaller Reader Nick L. wrote: “My wife noticed something the last time we were shopping at Superstore (A chain of grocery stores in Canada). 40 lbs. Rooster Brand AAA Scented Rice was “on sale” at $25.98 with regular price listed as $28.97.” Inflation Growing in Emerging Markets Oil to exceed $150 a barrel, ‘probably go over’ $200 warns investor Global food price index surged 25% in 2010 Gas Prices Up for Nearly All; 70% Expect $4-A-Gallon Gas by July. This might be a good time to …

Long-time content contributor P.D. forwarded this link: Austerity In America: 22 Signs That It Is Already Here And That It Is Going To Be Very Painful Analysis: What is Plan B if China dumps its U.S. debt? (Thanks to Sue C. for the link.) From SurvivalBlog’s Poet Laureate George Gordon comes a link to a piece by Tyler Durden: US Mint Reports January Silver Sales Hit 26 Year High Ballmer, Blankfein Invited by Obama to Hu Discussion on Business in China Items from The Economatrix: Obama Push For China Currency Changes Could Cost US Consumers   Housing Market’s Plunge Passes …

John R. suggested this piece by Marty Weiss about municipal bonds: New Debt Crisis Striking RIGHT NOW! Dave C. sent us this: Why supermarket stocks are getting squeezed EMB flagged this: MERS Minus A Few Bricks…. 10 American Companies That Will Disappear in 2011 Items from The Economatrix: The Truth About Money, Silver & Gold   Will This Be The USA In 2012?   Doom & Gloom: Food Riots   2011 Will Top 2010 Record of One Million Foreclosures   States Eye “Sin” Taxation as Salvation for Budgets

Disclaimer:  This  article represents the opinions of one individual.  Keep in mind my views are more extreme than the mainstream.  For example, I am anticipating significant worldwide financial upheaval in 2011, which could include any combination of collapse and bailout of European economies (Ireland, Spain, Portugal, Greece, or Italy); devaluation or collapse of the Euro; loss of faith in the US Dollar as a worldwide trading tool (note that Russia and China recently agreed to price trade deals in their sovereign currencies, not dollars); further “bailouts” and “Quantitative Easing” in the US Economy;  and widespread municipal bond and municipal pension …

Sue C. suggested this: The Black Swan Events of 2011? RVL sent: Record $14 trillion-plus debt weighs on Congress. The article begins: “The United States just passed a dubious milestone: Government debt surged to an all-time high, topping $14 trillion — $45,300 for each and everyone in the country.” Thomas Sowell: Honest Answer to Government Woes is Bankruptcy Wait for complete package on debt crisis: Merkel Weak Dollars and Strong Commodities? (Thanks to John R. for the link.) Items from The Economatrix: Homelessness Increases As Help Decreases   10 Things That Would Be Different If The Federal Reserve Had Never …

A chart published by The Financial Times says it all: America: Paydown problems You’re insane if you don’t own gold, investors told Muni Bonds Crashing For Third Straight Day, And This Is The Worst Yet. (A hat tip to Yishai for the link.) John R. sent this by Gonzalo Lira: Why Democracies Will Always Go Bankrupt The Latest Gold Fraud Bombshell: Canada’s Only Bullion Bank Gold Vault Is Practically Empty. (Thanks to Michael H. for the link.) Items from The Economatrix: At Least 10 States Have Introduced Gold-As-Currency Bills Industrial Production Rises By Most in Five Months   Holiday Spending …

Cost to Make Penny and Nickel Rises for US Mint. It now costs the U.S. Mint 9.22 cents to produce a nickel! Build your pile now, before the coin composition changes! (If you dawdle, then you’ll have to sort coins. And once the base metal value exceeds 2x face value, nickels will be driven out of circulation by the general public.) Illinois Lawmakers Pass 66 Percent Income Tax Increase Ben S. was the first of several readers to send this: Housing Market Slips Into Depression Territory Items from The Economatrix: S&P, Moodys Both Warn On US Credit Hard Times In …

In Entitlement America, The Head Of A Household Of Four Making Minimum Wage Has More Disposable Income Than A Family Making $60,000 A Year. Moody’s warns US, Europe countries on rising costs 25 Hard Questions That You Will Not See Asked On CNN, MSNBC Or Fox News. (Thanks to J.D.D. for the link.) More banks and servicers walk away from properties Items from The Economatrix: Gerald Celente:  Internet Nuke Bomb Waiting To Go Off   Virginia Creates Subcommittee To Study Monetary Alternatives In Case Of Terminal Fed “Breakdown”  Real Silver Highs Stocks Dip After Unemployment Applications Rise   Over 1 …

Greetings Mr. Rawles, While I believe Survivalblog readers are by-and-large sharp gold-buyers as opposed to naive gold-sellers, I thought I would pass along the experience my local bullion dealer had with one of those “We Buy Your Unwanted Gold!” outfits that came to town last weekend. They specifically solicited numismatic coins and of course promised to pay top dollar. Following the normal modus operandi, this company ran full-page ads in the local paper on Saturday and Sunday and rented space to set up shop in a local motel. Add to this the travel, lodging, and salary expenses of their employees …

Reader Joe K. pointed me to piece by Lee Rogers that echoes something that I’ve been recommending for the past three years: Investment Of The Century: U.S. Minted Nickels. John Williams Eyes Gold as Insurance Against Hyper Inflation Armageddon Why Interest Rates Keep Rising, Despite QE2 Steve H. sent this: Smaller corn, soybean crops send prices surging Bailouts Postponed, But Can’t Prevent the “Greatest Depression,” Gerald Celente Says. (Thanks to J.D.D. for the link.) Items from The Economatrix: UK:  Petrol Prices To Hit Six Pounds A Gallon   “Our Savings Have Vanished – We’ve Lost Everything”  EMU Debt Crisis Edges …

Inflation Flies Up, Up, And Away   Downsized! More and More Products Lose Weight News from India: Onion prices make Mumbai investors teary-eyed. “Vegetable prices jumped 16% in the week to Dec. 25 from the preceding week and were up about 60% from the comparable week last year. Onion prices, meanwhile, soared 23% week-on-week and were up a staggering 82% from a year earlier.”   Super Big Gulp fan says 7-Eleven duping the public out of 4 ounces JPMorgan: Surging Food Prices Fueling Global Inflation

Debt Default Fears Will Spread To US and Japan, Warns Citigroup   Deepening Crisis Traps America’s Have-Nots   Prepare for a Greek Default     Brett G. suggested this piece: JPMorgan’s Dimon: More Cities Will Go Bankrupt John R. liked this one: The New Financial World Order Evolves Further Also from John: Here’s That Big Citigroup Report On Why Absolutely No Sovereign Debt Is Safe Items from The Economatrix: How The Government Spins Unemployment (Paul Craig Roberts) Fed Prints Another $600 Billion to Keep US Recovery on Track   Oil Surges on Offshore Drilling Report   Housing Market Slips Into …