Category: Economics & Investing

I. Introduction As of September 2010, it appears that physical silver is today potentially the most explosive precious metal play in history. A combination of factors – chronic scarcity, inelastic demand, and expanding consumption has created potentially one of the most profitable opportunities ever seen. The following analysis presents the base rationale for purchasing silver. Furthermore, significant evidence exists to point towards downward manipulation of the silver market by large bullion banks, further compressing the market. It is this author’s opinion that a parabolic top in silver could easily surpass the 20x rhodium price increase from $500 to $10,000 over …

John Tamny predicts: The U.S. Goes Back to the Gold Standard. (Thanks to “T Moo” for the link.) B.B. sent us this: Homebuyer tax credit: 950,000 must repay Jonathan C. flagged this: Outlook Gloomy at Secret Billionaire Meeting. “They saw the United States in a long-term slow growth environment with the near-term risk of recession quite real,” Items from The Economatrix: US Mint Running Out of Silver (and Excuses) The Lights Have Officially Gone Out in the US Union Pension Funds, the States, and Financial Ruin Sustainability Key to Global Economic Health, World Leaders Warn

Fear As Food Prices Soar Video: DeLaughter Says Food Inflation to Drive Farmland Demand Reader L.C. wrote: “I feed my family mostly certified organic foods. We deal primarily with local farmers for our meat and produce and dairy needs, but the kids do like a hot dog every now and again. So I have been buying Applegate Farms organic hot dogs from the local organic market for years. The price in the last couple years has been $5.79 for a package of 8. Today at the market they had a “brand new look” on the new packaging. The price is …

Rosenberg: Here Are 13 Signs That We’re Actually in a Depression Right Now. (Thanks to P.D. for the link.) Greg G. sent us this: Michael Burry is Long Farmable Land, and Agrees With Paulson on Gold (But Not the Other “Recovery” Themes). (Greg’s observations: “Michael Burry, a famous hedge fund manager has stopped investing other people’s money altogether and has gone ‘all in’ on farmable land with water on site and physical gold. I think that this guy is a undercover prepper.”) Americans Saving More as Debt, Job Worries Mount. Steve K. mentioned the “I Want Your Money” Official HD …

After a two week interlude (including a Holiday weekend), the FDIC Friday Follies have resumed, with the announced closure of Horizon Bank, Bradenton, Florida. OBTW, have you noticed how bank failures have become so commonplace that they are hardly even mentioned by the mainstream media? Treasurys Tumble Following Weak 30-Year Sale. The rate of return on Treasury paper are bound to rise, and that will push up prevailing interest rates, and that in turn will further slow the economy, including home sales. We are poised to enter a death spiral, folks. Watch interest rates and the US Dollar Index (USDI) …

Grocery Shrink Ray Minimizes My Brownies. “At least it’s less embarrassing and diet-damaging to devour an entire pan of brownies with the rebooted, withered Betty Crocker Turtles.” Getting ready for more inflation? One can only wonder why the US Postal Service now requires SDR valuation calculations for insured international shipments.

Over at the View From the Porch blog, Tamara posted this gem on the recoveryless housing market: Missing the point. The comments that follow are also worth reading. Reader Sue C. highlighted this article: OECD Says Slowdown ‘More Pronounced’ Than Anticipated KAF sent this: Stimulus? Who Said Anything About a Stimulus? Items from The Economatrix: Stocks Resume Rally as European Debt Worries Ease. Consumers Cut Back on Credit Card Use Once Again Job Openings Rise for First Time Since April Hopes Rise as Jobless Claims Fall, Trade Gap Eases Stocks Extend Gains After Drop In Jobless Claims Mortgage Rates Edge …

A New York Times article: “The Inflation Cure” UK Telegraph: Wheat Prices push food costs to 13-month high Fear As Food Prices Soar The Hindu: Inflation likely to be high in future

For the “Why am I Not Surprised?” Department: New Steel 5 Pence and 10 Pence Coins a Disaster. SurvivalBlog readers on this side of the Atlantic should still be stocking up on nickels, before a similar switch! (Hat tips to Tod P. and Tony B. for the link.) A good one for USD Index watchers: Deflation Never Had a Chance Michael Pento Says Fed Will Buy Stocks And Real Estate In Its Next Attempt To Create Inflation. (Thanks to Nick J. for the link.) G.G. flagged this: No defence left against double-dip recession, says Nouriel Roubini “SIG” spotted this piece …

Reader Z.D.G. notes: “Our little small town in Texas recently raised our water rates by a whopping 59%. Ouch! Time to get water independence.” Homeless Outraged That $1 Menu at San Francisco McDonald’s Now 50 Cents More Higher taxes and fees ahead in 2011 and beyond: Recession Continues to Batter State Budgets; State Responses Could Slow Recovery

SurvivalBlog’s Poet Laureate George Gordon (“G.G.”) sent this: Germans, and a Wave of Swiss Bank Accounts, are Piling into Gold as if it’s a New Crisis The Daily Bell reports: US Fed Gains Power, Loses Credibility? More than 400 US Banks Will Fail: Roubini Reader Sam G. sent us a link to a piece that deconstructs some Orwellian journalism: TIME: Rising Unemployment Rate Is Good News Items from The Economatrix: Seven Steps to Becoming a One-Income Family Despite Hiring, US Unemployment Rate Seems Frozen Stocks Extend September Rally After Jobs Report Heavy in Dollars, China Warns of Depreciation Lehman Brothers …

UN calls special meeting to address food shortages amid predictions of riots; Poor harvests and demand from developing countries could push cost of weekly shop up by 10% Back in January, Turkey’s leaders were claiming that the then 6% annual inflation rate was “temporary“. But now it is back up to nearly 12%. Could a return to the Bad Old Days of 90% annual inflation (like Turks experienced in the mid-1990s) be on the horizon? Modern-day wheelbarrow loads of cash: Could Tiny Somaliland Become the First Cashless Society?

Some prescient predictions from Matthias Chang: Warning Global Fiat Currency Financial System Collapse By Early 2011 Tony B. sent this piece from PBS: The true cost of the bank bailout Mendo Mary was the first of several readers to mention this: Five Doomsday Scenarios for the U.S. Economy Fortune asks: Should US government debt be rated junk? (Thanks to American Expatriate (AmEx) for the link.) Jon R. suggested this news item: Use of rare earth metals outstripping supply Items from The Economatrix: Low Interest Rates Squeezing Pension Funds Obama Economic Advisor: Turnaround Insufficient Warning Global Fiat Currency Financial System Collapse …