Category: Economics & Investing

The latest from Gonzalo Lira: Ballsy or Crazy? Where are We on Inflation and Hyperinflation. (Be forewarned that Mr. Lira uses some crude language.) Reader Brett G. sent us a snippet from an e-mail that he received from a friend who lives in Alaska: “[Rapid price inflation is] really happening up here [in Alaska], overnight: $3.91 [per gallon] for gas $4.89 [per pound] for butter and that was with it ‘on sale’. Milk is $3.89 [per gallon]. It had been $2.99 [per gallon] until this week. Plant seeds! Get ready. Tomatoes will be $7.75 per pound soon, but people just …

James,   I read on your blog where you said that you can fit $178 worth or nickels into a standard U.S. .30 cal ammunition can.   Well, I’ve been able to stuff $190 worth into every can so far. I don’t know why others can only get 89 rolls while I can get 95 rolls into the same space. Might I suggest stacking them directly on top of each other instead of letting the next row rest in the previous rows’ valley. Visualize stacking them not like a rack of pool balls or bowling pins, but rather like a brick of AA batteries. Whether …

Pierre M. mentioned: The Worst Hyperinflation Situations of All Time. JWR Adds: I often slip a Zimbabwean $100 Trillion bill inside the front cover of autographed copies of my novel when I send them as gifts. That serves as a reminder that mass inflation isn’t just in the realm of fiction. Thanks to Kelly D. for spotting this: World Bank: Food prices at “dangerous levels” World Bank report says food prices are at “dangerous levels” after rising 29 percent in a year Evan D. suggested this piece: Collective financial insanity – FDIC backing $5.4 trillion in total deposits on pure …

Five Reasons Investors are Going Crazy for Farmland. (Thanks to Don W. for the link.) Frequent content contributors Sue C. and C.D.V. both sent this: Housing Crash is Hitting Cities Once Thought to Be Stable. “Few believed the housing market here would ever collapse. Now they wonder if it will ever stop slumping.” J.M.A. mentioned this essay over at American Thinker: A Tipping Point Is Nearing Pierre M. pointed us to this: Roubini’s Next Crisis Is Scary Food for Thought: William Pesek Geithner Quietly Tells Obama Debt-to-GDP Cost Poised to Increase to Record. Here is a quote: “It’s a slow …

Mr. Rawles,   I took your advice and, this week, bought a large quantity of [U.S. Five cent piece] nickels for investment. I thought your readers might want to know how surprisingly easy it was. I only had to contact two branches (in a major East coast city) of a large US bank. I have had an account with that bank for a long time, but I had no personal relationships there. The nice lady at the first branch said that she was happy to help but, because the branch had a small vault, she could only get me three boxes ($300) at a time. …

Produce prices skyrocket with freeze in Mexico, Southwest. Stock up on dehydrated veggies, now! Sid C. sent a link to some more about those fake Morgan Silver Dollars made in China. This television news piece mentions a couple of key indicators that you can use to detect fakes. G.G. sent this: White House Expects Deficit to Spike to $1.65 Trillion Goldrunner: The Golden Parabola F.G. flagged this one: Will Chocolate once again become a rarefied luxury? SAA Joe mentioned: U.S. Corn Reserves at Lowest Level in More than 15 Years J.D.D. spotted this: Alan Simpson: U.S. Deficit Is ‘a Disaster’

John R. sent a Seeking Alpha article with some confirmations of my warnings to SurvivalBlog readers since 2006: Derivatives: The Real Reason Bernanke Funnels Trillions Into Wall Street Banks. Here is a quote from the article: “Of course, Bernanke tells the public and Congress that the reason we need low interest rates is to support housing prices. He doesn’t mention that $188 TRILLION of the $223 TRILLION in notional value of derivatives sitting on the Big Banks’ balance sheets is related to interest rates. Yes, $188 TRILLION. That’s thirteen times the US’ entire GDP, and nearly four times WORLD GDP.” …

America’s inflation alarm is growing ever louder, (Thanks to G.G. for the link.) News from formerly Merry Olde England: Staple Food Prices Fastest Rise in Five Years . Corn’s rally feeds a ‘global food fight’ Kraft says more price increases ahead

Pierre M. sent: Egypt Crisis Puts Spotlight on Weakness in US: El-Erian A few industries are bucking the trend and doing well in the recession. The newspaper article from Montana highlights one: Bitterroot Valley ammunition makers see ever-growing demand. Don’t miss the comments on buyers’ concerns about “the world falling apart”, near the end of the article. (A hat tip to Mara for the link.) More mainstream media feel-good journalism: Everything You Ever Wanted To Know About The World’s Battle With Inflation But Were Afraid To Ask. From their standpoint, inflation is a good thing. As if we’re supposed to …

Several readers sent this: IMF calls for dollar alternative. Non-Dollar SDR bonds could replace the US Dollar in some international trade. This may hasten the demise of the US Dollar. Fiscal Insanity: Here we are in the midst of a recession-cum-depression and the Federal government is swimming is a sea of red ink. They’ve amassed a National Debt that exceeds $45,500 for every man woman and child in the nation. But now Vice President Joe Biden is pushing for a $53 billion Federally-funded high speed rail system. Air Force Dad sent this: Fed’s Warsh Quits; Bernanke Adviser Questioned QE2 The …

John R. recommended this editorial: Ben Bernanke and The Confidence Men Aaron A. suggested this televison news item: Economy keeps parts out of auto body shops. (It includes yet another sob SAAB story.) C.D.V. sent this: China’s Wheat Basket Faces Its Worst Drought In 200 Years Items from The Economatrix: Job Openings Fall for Second Straight Month   Business Travel Bounces Back as Economy Improves   AP Analysis:  Foreclosures Raise US Economic Stress   Treasurys Fall After Weak Auction of Three-Year Notes   Silver to Soar in 2011, Says Investment Guru  

McDonald’s likely to raise prices in 2011 Seven Things That Will Cost More in 2011 and What You Can Do About Them Wheat/Cattle Prices Moo-ving Up Can China Tame Its Inflation Dragon? C.D.V. sent this: Grocery Bills are on the Rise

Jeff in Virginia and Yishai both mentioned this: WikiLeaks cables: Saudi Arabia cannot pump enough oil to keep a lid on price. Count this as further evidence that Peak Oil is reality. Michael Pollaro writes in Forbes: America, poised for a hyperinflationary event? Air Force Dad sent us this: US Dollar Index: Momentum selling could be swift and steep. As Quantitative Easing (monetizing the National Debt) continues, look for plenty of downward momentum in the USDI. C.D.V. sent: 10 Ways Weather is Wreaking Havoc on the Global Economy Items from The Economatrix: 9% Unemployment Rate is a Statistical Lie   …