Category: Economics & Investing

Watch the US Dollar Index. As I’ve mentioned before, 72 is he threshold to watch for. Below that, there could be huge currency trading turmoil, and formal devaluations. Reader Richard H. sent us this ominous article: Financial stability set back by debt woes: IMF. Here is a quote: “However, the fund said banks had made less progress in dealing with near-term funding pressures — nearly $4 trillion of bank debt needs to be refinanced in the next 24 months. ‘Overall, bank balance sheets need to be further bolstered to ensure financial stability against funding shocks and to prevent adverse feedback …

Jon M. sent this: Banks’ $4 trillion debts are ‘Achilles’ heel of the economic recovery’, warns IMF. IMF admits that the West is stuck in near depression Gary Shilling: Here’s Why House Prices Will Now Drop Another 20%. (Thanks to Zo for the link.) S.M. spotted this: Bernanke Tells the Truth: The United States is on the Brink of Financial Disaster U.S. Yields Will `Surge’ as Fed Increases Debt Purchases, Diam Forecasts. (Thanks to Susan H. for that link.) They used to call this nonsense “debt monetization” or more bluntly “monetary inflation”. But now they give it the saccharine-coated moniker …

Okay, so I told you so, folks. Gold and Silver have set new highs. There will still be some very scary dips in this bull market. Be wise. Buy on the dips! No comment necessary: State officials cancel access to welfare benefits on cruise ships and at all casinos. (Thanks to N.I.M. for the link.) Damon flagged this: ‘Delay and pray’ won’t work for commercial real estate Greg C. mentioned this: How the Housing Crisis Will End the U.S.A. as We Know It. B.B. sent this: Consumer bankruptcy filings climb 11% Those mysterious derivatives: French trader must pay $6.7 billion …

Reader Robert A. sent this: How to Make & Use Gold Test Solutions. Robert’s comment: “I recently entered a gold and silver exchange to sell, what I thought was silver, and upon testing discovered that it was a very thick silver plate. Below is a list of solutions used for various testing of gold and silver. I was informed that using the 14 karat gold solution works well for testing silver.” K. in Montana liked this piece over at the Rural Revolution blog: The Economics of Prepping Dan J. flagged this: S&P: $460 Billion Shadow Inventory [of distressed residential properties] …

$10,000 Gold? (Thanks to Siggy for the link.) Don’t Get Too Excited About Gold — It’s Actually Down Compared to the Euro US mint raises premiums on Silver Eagles by $.50 per coin Richard H. sent this: Cheap Debt for Corporations Fails to Spur Economy Items from The Economatrix: Treating Symptoms, Ignoring The Root Cause The Next Phase Of Gold’s Meteoric Rise The Recent Move in Silver is Just a Preview of What We Can Expect in the Future

Sir: I was wondering if you could tell me if it would be wise to buy pre-’65 [United States] silver coins, as I live in Canada. Do you think people would understand their value here? Also, any idea where I would get them? I am not having much luck with Internet searches. Thanks for your time. – Kirk in Canada JWR Replies: To be sure that they are recognizable for barter, you should buy the equivalent Canadian mint circulated coins. These available at your local coin shop. Ask for well-worn “junk” coins that don’t have a numismatic premium price. For …

Jon M. was the first of several readers to send this: Global employment crisis will stir social unrest, warns UN agency Reader M.E.W. forwarded this: Foreclosures sell at 26% discount Danny B. sent us this: Bad Spending Habits, Lack Of Savings Leave Consumers And Baby Boomers In Financial Crisis Thanks to Susan H. for sending this: How risky are uninsured bank deposits? Items from The Economatrix: Peak Gold Is Upon Us Buy Gold Young Man, Buy Gold Economy Gets Lift From Government Aid More FDIC Friday Follies: Regulators Close Small Florida, Washington Banks Aging Work Force Inspires Utility Worker Training

Is The Federal Reserve Out Of Control? Markets Around The World Brace For Impact As The Federal Reserve Powers Up The Printing Presses Reader A.S.W. notes: “I just returned from a Sam’s Club warehouse store in Florida. Their Maker’s Mark brand of toilet paper went up $3 per package. A week ago it was $14 now it is $17. And regarding sugar, the shelves at Wal-Mart and the Aldi [supermarket] were wiped out so I had to get a 50 pound bag at Sam’s. This also went up $3. a week ago it was $25 now it is $28.”s Puru …

Jon M. in England sent this: Are we heading for a replay of 1930s? Agoura Hills and a $280,000 discount on a once million dollar home. B.B. sent this one: 1099 Supply Shock for Gold Buyers. Perhaps its time to switch to fractional gold bullion coins, and VF slabbed $5 and $10 gold pieces. Steven B. forwarded this: Chinese Economy Next Enron: Chanos video Jim Rogers: Gold to Soar to $2,000 an Ounce in Decade. (Thanks to Brett G. for the link.) Mike H. flagged this: House passes bill aimed at Chinese currency. “How dare they free-float their currency? The …

G.G. sent this: Capital controls eyed as global currency wars escalate Reader Danny B. forwarded this: Citi sued by Norwegian central bank Michigan, Florida Lead 34 States With Drop in Household Income Meredith Whitney’s new target: The states David S. suggested this: Politics Versus Gold Items from The Economatrix: World Gripped by “International Currency War” How Realistic is $5,000 Gold? Faber: Accumulate Gold and Keep it as Cash “Gold To Go” Taps into Gold Fever with ATMs Stocks Sizzled in Third Quarter, But Will it Last? Jobless Benefit Applications Drop to 453,000

Norman A. was the first of several readers to mention this: Ben Davies – The World Monetary Earthquake. Here is a quote: “Within a single week 25 nations have deliberately slashed the values of their currencies. Nothing quite comparable with this has ever happened before in the history of the world. This world monetary earthquake will carry many lessons.” B.B. sent this: U.S. Mint says it has run out of Buffalo gold coins Fred D. flagged this: Is Gold Going up or is it Just the Dollar Going Down? Job Experts Lose Jobs! (A hat tip to Jim P. for …

H.H. sent this: European Central Banks Halt Gold Sales Jeff E. was the first of several readers to send this: Banks Keep Failing, No End in Sight From G.G.: Banks Keep Failing, No End in Sight U.S. Economy “Close to a destructive tipping point” Glenn Hubbard Says. (Thanks to John G. for the link.) Merry recommended a Mike Maloney lecture video. Items from The Economatrix: Cold Hard Reality Hits Oregon Supply Squeeze of Physical Gold and Silver May Be Heating Up The Currency Crisis of 2010-2011 A Hazard of Buying Bond Funds Now A Red Alert Threat To The Regime …