Category: Economics & Investing

Jeff Gundlach: The US Economy Is A Complete Horror [Slides] (A hat tip to Yishai for the link.) Fresh Humiliation for Eurozone as China says it will bailout debt-ridden nations. (Thanks to Jonathan C. for the link.) Robert Kiyosaki’s commentrary: The Eye of the Recession’s Storm Items from The Economatrix: Bloomberg Counters Gold’s Run With Absurd, Baseless Hit Piece   Treasuries’ Worst Drop In 2010 Driven By Central Bank Sales   Top Economists Debate The Crisis:  “Clinging to the Euro Will Only Prolong The Agony” 

News from England: Cost of the Weekly Shop Set to Rocket Next Year Reader F.B. notes: “I purchase bulk whole grain for animal feed in Kuna, Idaho. I bought Bulk dried corn in January, April & August at $12 per hundred weight, but on Dec 22 it was $13 per hundred. And I bought soft white wheat. It was formerly priced at $11 per hundred. The price at my most recent purchase in December was $1 per hundred.” Bolivia hikes gasoline prices 73 pct; protests hit. Big Freeze Thieves Target Heating Oil As Prices Soar And Families Wait For New …

Mo sent this: Alabama Town’s Failed Pension Is a Warning Sue C. sent this item from Yahoo Finance: 16 U.S. cities that could face bankruptcy in 2011 M.M. suggested this news item: New Interest in Turning Gas to Diesel. (But you have to wonder about the EROEI efficiency!) Items from The Economatrix: Unemployed Get Another Jobless Benefit–Yoga   Americans Made Less in 2009; Minimum Wage Set to Rise in 2011   In Tough Economy, Santas Are Also Suffering   In Tough Economic Times, Bodyguard Business Is Booming 

For Recession Victims, Gold Mining Pans Out From C.D.V.: 60 Minutes segment: “State Budgets: Day of Reckoning” Goldman Sachs Guru Sees 2011 as ‘the Year of the USA’ Goldman’s Jim O’Neill shot to fame by predicting the staggering rise of emerging-market economies like the BRIC nations, Brazil, Russia, India and China. But 2011, he says, “will be the beginning of a new phase in which the U.S. has strong GDP growth.”    Items from The Economatrix: Sales of Previously Occupied Homes Up in November   Oil Tops $90 as Government Says Crude Supplies Shrank   Citigroup Fears Fresh Wave of …

I recently took the tax hit and cashed out my Gold Eagle IRA that had been administered by GoldStar Trust (the assumed the accounts of American Church Trust). I did so because I suspect that precious metals IRAs will be nationalized before I hit retirement age. I’m presently 50 years old. Yes, I know that there is a huge tax hit. But thankfully that tax bite won’t be too painful, since I paid less than $500 per ounce for most of that gold, back when I was working in the corporate world. I then took most of those gold bullion …

B.B. flagged this piece at Zero Hedge: Nordea’s Chart of the Week – Collapsing US Import Demand AmEx (American Ex-pat) sent this bit of gloomage $2 Trillion debt crisis threatens to bring down 100 US cities Over at the It’s All About MunKnee blog: The U.S. Dollar: Too Big to Fail? Items from The Economatrix: Bernanke Denies Printing Money.  Mogambo Not Convinced.   Will Congress Delete Mortgage Deduction?   Higher Gasoline Prices May Linger Into 2011   Oil Prices Climb Amid Cold Snap  

KAF sent us this: Facing Closure, U.S.’s Largest Sleeping Bag Maker Seeks Relief From Free Trade Loophole. (JWR Adds: Meanwhile, Wiggy’s, a sleeping bag manufactures that produces all of their products in the U.S. at their small Colorado soldiers on, seeking no handouts or special treatment. This SurvivalBlog advertiser deserves your business!) Reader R.M. sent this: Moody’s slashes Irish debt to three grades above junk. Ouch! So what will a Punt be worth, if Ireland is ejected from the Euro circle? And what does this tell us about the indebtedness of the U.S. government? John R. recommended this piece over …

Siggy sent this: CBO Recommendation to Munis – Default! JWR’s Comment: Do I see another expansion of the Mother of All Bailouts (MOAB) coming? Marc in the Inland Northwest sent a link to a piece at The Daily Bell: China: That Urban Empty Feeling Michael Pento – US Headed Down a Path of Destruction        John Williams: Massive Selling of US Currency Lies Ahead   Alan B. sent this: Gold to reach $1,800 – probably in Q1 2011 – James Turk Michael H. mentioned: South Korea plans levy on foreign currency bank debt   Also from Michael:   …

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