Category: Economics & Investing

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 …

Bond Prices Plunge for Second Day on Deficit Fears. (Thanks to B.B. for the link.) Nancy B. suggested this insightful piece by Max Hastings: We’re all doomed!!! We still haven’t woken up to how much poorer the West is going to be in the future… Fleeing the U.S. Dollar: IMF sells 200 metric tons of gold worth $6.7 billion to India’s central bank Here is a piece by my mentor, Dr. Gary North: U.S. Facing Federal Debt Cataclysm, The Establishment Is in Despair Ferd flagged this: The Fed Has a $110 Billion Problem with New Benjamins The Federal Reserve covered …

Reader G.W. wrote to mention that the Coin Debasement Modernization Act passed on November 30th. It is now waiting President BHO‘s signature. I’ve been warning folks about a likely change in the composition of the U.S. Nickel (Five Cent coin) for more than three years. This may be your last chance to get real nickels at no premium over their face value and without the effort of any sorting. (Once a coin composition change takes places, it will become labor intensive, just as it did with pennies.) Jason in Central New York sent this: Was There A Big Recession Warning …

Surprise, surprise: Fed aid in financial crisis went beyond U.S. banks to industry, foreign firms B.B. sent this from the Des Moines Register: Why farmland is skyrocketing. (I’ve been telling folks to invest in productive farm land, for many years. I told you so!) How muni bond bust could do big damage Foreclosure mess could threaten banks, report. (A tip of the hat to Kelly D. for the link.) Elitists Leading On An Odyssey Of Economic Ruin. (An excerpt from Bob Chapman’s weekly International Forecaster) Our thanks to frequent link contributor John R. I told you so: Spot silver hit …

America Bails Out A Thankless World  Here is an excerpt: “Turns out the Fed had over a dozen emergency programs operating beginning in 2007-08, one of them lending close to $9 trillion to Merrill Lynch, Morgan Stanley and other troubled institutions, often at the comical interest rate of 1%.” John R. suggested this insightful piece by David at Deepcaster: Profit-Lessons from The Ongoing Europe/USA Crises Reader Davis sent flagged this: Mounting State Debts Stoke Fears of Looming Crisis Bob G. sent this item: The Patriotic and Moral Imperative for Owning Gold and Silver Items from The Economatrix: FDIC Takes Gloves …

I got a bit of a shock when I dropped by my local coin shop, planning to buy some pre-1965 non-numismatic (“junk”) U.S. silver coins for Christmas gifts for Rawles family members. Their asking prices was 21.1 times face value! I was also surprised to see a few minty-looking 1964 proof quarters mixed in with the dealer’s tray of junk silver coins. He said that the spot price of bullion silver has galloped up so quickly that it has completely overshadowed any numismatic value for the 1964 proof Washington quarters. These are strange and exciting times for the coin bourse! …

Sue C. sent an article that illustrates the depth of the European sovereign debt crisis: A Day of Reckoning Failed bond auctions: Germany struggles to sell five year debt; Portugal stung Also from Sue: Deficit Commission Report Fails to Advance to Congress Items from The Economatrix: Consumer Price Inflation: The Wolf at the Door   Mug’s Game (The Mogambo Guru)   Could WikiLeaks Revealing Major Bank Secrets Crash The Global Economy?   Fed Survey:  Economic Growth Picks Up In Most Of U.S.   Economy Appears Headed For Strong Finish In 2010  

G.G. recommended: The road to a US insolvency crisis F.J. liked this piece by Simon Black: Disappearing Bank Accounts. The article begins: “If you don’t have money outside the computerized banking system, you should do so now. You just never know when the system is going to go down.” Randy F. suggested this book review: The Penniless Billionaires: A Tour of Inflationary Eras Past and Present Items from The Economatrix: Cutoff of Jobless Aid Would Lower Economic Growth   Happy Holidays?  28 Hard Questions It Would Be Great If We Could Get Some Real Answers To   The Gold Standard …