Category: Economics & Investing

After much foot dragging, the Federal Reserve banking cartel finally fessed up to lavishing $3.3 trillion in new liquidity and in excess of $9 trillion in “short term” loans. But in doing so, they soft-pedaled the fact that a good portion of that was used to bailing out soured or failed mortgage-backed securities (MBS) derivatives contracts. Gee, even the biggest casino in the world can get insurance, these days. But I suspect that the next derivatives meltdown will be so big that it will bring down the global financial system. C.D.V. suggested this article: Any Talk of Recovery is False. …

Santelli: Clarity From Fed? No. Inflation? Yes. ShadowStats: Hyperinflation Special Report (Recently updated)  China’s inflation rises at fastest pace in two years The CPI Is Broken. Here’s Why. “Food prices rise sharply – and there’s more to come” Bloomberg’s “Chart Of The Day” Warns of Coming Surge in Wheat, Corn Prices   

Citigroup: Dollar May Drop 11 Percent in 2011 as Treasurys Fall. (A tip of the hat to Brett G. for the link.) Katrine recommended this over at The End Of The The American Dream blog: 16 Nightmarish Economic Trends To Watch Carefully Tipping Point: 25 Signs That The Coming Financial Collapse Is Now Closer Then Ever. (Kudos to Tim E. for sending the link.) Florida ATM Spits Out Gold, Not Cash. But you’ve got to wonder about the mark-up… (Thanks to Steve P. for the link.) Still more FDIC Friday Follies, as six more banks bite the dust: Regulators close …

What the New Tax Bill Deal Means for You. JWR’s Comment: I’m very skeptical about what went on in back-room deals to get this legislation passed so quickly, particularly in the U.S. Senate. Were promises made about acquiescence to one or more upcoming treaty ratifications or the DREAM illegal alien amnesty bill? Time will tell, but something seems amiss. The Lumberman sent this: Food Stamp Rolls Continue to Rise. (Nearly 43 million people in the U.S.–14% of the population!) Frequent content contributor John R. sent the next few items: Doomsday for the US Dollar: Post Mortem for the World’s “Reserve …

More contrapreneur self-delusion by the market “experts”: Time to Switch From Bonds to Stocks? The only truly safe haven in these days of fantasy currencies is in tangibles. J.B.G. suggested this piece by Gonzalo Lira: Want To Ruin Your Own Country? Assume Your Banks’ Liabilities Goodwill Providing Key Services Amid Tough Economy The Feds Final Days (Darryl Robert Schoon) John Mauldin documents how consumer credit is still collapsing: Unintended Consequences. Items from The Economatrix: How to Buy Gold and Silver   Precious Metals To Lead Commodity Returns In 2011, Goldman Sachs Predicts   Fed Signals Stronger Economy Won’t Slow Plan To …

Debt monetization (the government buying its own debt) is waving a huge Red Flag that signals mass inflation in the near future: Fed Surpasses China in Treasury Binge News from England: Inflation surges at record pace in December Serbia’s Inflation Rate Hits 10 Percent Addison Wiggin: Why You Shouldn’t Trust the Core CPI Numbers General Mills to Raise Prices

US will lose AAA credit rating, says M&G’s Jim Leaviss. (Kudos to J.B.G. for the link.)   Items from The Economatrix: Stocks, Bond Yields Rise As Fed Sticks By Stimulus   Good Signs: Retail Sales Up, CEOs In Hiring Mood   Stronger Reports, Fed News Push Treasury Rates Up   Stocks Fall As Euro Worries Overshadow US Growth   Factory Output, Low Prices Give Economy Boost   JP Morgan And The Great Silver Caper  

Marty Weiss: Warning: Muni Bond Chaos Imminent The Fed’s Contrarian, With a Wary Eye on the Past I found this sign of the times linked at The Drudge Report: Grave Robbers Steal 400 Urns From Cemetery A big electronics retailer’s stock drops 14% in one day: Best Buy’s holiday fumble. Items from The Economatrix: Shoppers Shunning Credit Cards   Roubini Sees Roots Of Next Crisis   Eric Sprott’s Double-barreled Silver Issue  

Ol’ Remus writes In Praise of Junk Silver. Frequent content contributor John R. suggested this: Derivatives: The Quadrillion Dollar Financial Casino Completely Dominated By The Big International Banks Paul W. mentioned: China Overbuilding to ‘Hit a Wall’: Chanos The Human Toll of America’s New Ghost Towns. With its incredibly high foreclosure rate, Las Vegas has become the Poster Child of the housing bust. New Madoff lawsuits seek $40 Billion …from banks and hedge funds. Recession Lasting Until 2018 Is Worth Exploring: William Pesek Items from The Economatrix: Stocks End Mixed Ahead Of Senate Vote On Tax Deal   Oil Prices …

Several readers pointed us to this New York Times article: A Secretive Banking Elite Rules Trading in Derivatives Patron Mark mentioned some commentary about the debt problems in blue states that makes a compelling case that severe hard times are inevitable. Cheryl N. sent this: Why Use Gold As Money? Social Security advocates fear payroll tax cut. (Thanks to Sue C. for the link.) Bram flagged this news item: Australia Overhauls Banking Rules

B.B. sent this: Jim Rogers: Fed understates inflation B.B. sent this: China’s Gold Imports Soar Almost Fivefold on Inflation Concern TAC in Illinois mentioned: “A 50 pound bag of white rice at Sam’s Club is now up to $19.47. Up almost three dollars in the last couple of months.”

David C. suggested a good interview with John Williams of ShadowStats, wherein he outlines the case for hyperinflationary depression in 6-to-9 months.  Regulators close banks in Michigan, Pennsylvania. The number just goes up and up…151 banks thusfar in 2010. (Thanks to Kelly D. for the link.) Glenn Beck Warns of Food Riots, Martial Law & Gun Confiscations. (Thanks to H.W. for the link.) Items from The Economatrix: Gold, Silver, Copper Hit Record Highs On Weakening Dollar It’s Not IF The Euro Collapses, But WHEN Zero Permanent Jobs Were Created By The Stimulus Global Bond Route Deepens On US Fiscal Worries

Rahn: Folding the Fed. (Thanks to John for the link.) B.B. recommend this piece: How Far Will The Gold Correction Go? C.D.V. and Roy G. both suggested a piece by Alfred W McCoy: Taking Down America (How America will collapse by 2025) Fed’s QE Ponzi Scheme begins to Backfire Items from The Economatrix: Euro Collapse “Possible” Amid Deepening Divisions Over Bail-out   Still Asleep To The New Economic Reality   UK:  Overdraft Charges Soar to 19%   Gold Likely To Hit $1,600 in 2011 – Credit Suisse  

The Wall Street Pentagon Papers: Biggest Scam In World History Exposed – Are The Federal Reserve’s Crimes Too Big To Comprehend? (Thanks to Timothy R. for the link.) Reader L.V.Z. sent this bit of conformation for the long-standing SurvivalBlog advice to buy physical precious metals and keep them at home: Jim Rickards: At Least One Swiss Bank Has Started Refusing to Hand Over Physical Gold to Clients. From the article: “All you need is a government order and ‘gold’ becomes something that isn’t to be backed by real gold. At which point you’d be wise to have real gold in …