Category: Economics & Investing

P.D. flagged this one: Right Now, a Complete Collapse of the Financial System is Not Out of the Question Michael Z. Williamson (SurvivalBlog’s Editor at Large) recommended this article: Bernanke soft-pedals QE2 risks. The age of the dollar is drawing to a close. (Thanks to H.W. for the link.) Items from The Economatrix: Stiglitz:  We Have to Throw the Bankers in Jail or the Economy Won’t Recover Largest 15 States are Spending Over 220% of their Tax Revenue Microsoft CEO Sells $1.3 Billion of Shares World Blasts Deranged Madman’s Uncheckable Insanity German Minister Renews Fed Criticism Inflation Watch: Chris Mayer: …

Thanks to B.B. for this link: Dollar at Risk of Crashing, Triggering Inflation G.G. spotted this recent post over at Zero Hedge: David Stockman Says The Fed is Injecting High Grade Monetary Heroin into the Financial System Susan H. flagged this: Citi: Central Banks Are Going to Start Dumping Dollars in the Coming Weeks Doubts grow over wisdom of Ben Bernanke ‘super-put’. The last line in the article is chilling: “If they start to act on this suspicion, they could push rates higher instead of lower, and overwhelm the Bernanke stimulus. That would precipitate an ugly chain of events for …

Reader Michael A. suggested reading this commentary by Karl Denninger: Bernanke’s Folly: The End Game. K.T. liked this piece by Bix Weir at The Road to Roota Letters: A Final Checklist for Everyone. The article opens with this sobering words: “My Road to Roota analysis shows that we literally days away from the breakdown of the entire fiat monetary system and I thought it a great time to go over final preparations for the coming chaos. In the grand scheme of things you can never be fully prepared for what is about to transpire because nobody on earth has been …

This article by Jeff Nielson is a must read!: Quantitative Easing is Economic Suicide. (Thanks to SurvivalBlog’s Poet Laureate G.G.sfor the link.) The latest from our favorite Switzerdudes over at The Daily Bell: How Western Powers May Have Blown It Here is Sheepdog to rout those grievous wolves: Ron Paul Will Chair the Monetary Policy Subcommittee. Items from The Economatrix: Dow Hits Two-Year High as Fed Details Stimulus. How can investors think that stock gains will out-pace double digit inflation? What idiocy. The Fed’s Big Gamble: Here’s What Could Go Wrong US Quantitative Easing is Fracturing The Global Economy US …

The Federal Reserve Stirs Poltergeist of Hyperinflation, Weimar Collapse Asset Inflation/Deflation: The Fed’s QE2 Versus $15 Trillion in Losses Fast Rising Food Prices Feed Inflation Fears Reader “Skyrat” notes: “Just today I purchased a Famotidine (an antacid OTC medication) refill, 20 milligrams, sixty tablets for $4.00 at Wal-Mart. This replaces the (now empty) bottle I purchased 20 August 2010, for $4.00. The kicker? The new bottle held only ninety tablets. Rising cost of living, anyone?” Corn, food and potential sticker shock Freakanomics: A Dunkin’ Donuts Store Exhibits Penny Sanity. JWR’s Comment: I believe this trend will continue until a zero …

QE2: Many Americans Haven’t a Clue What It Means (Video) OBTW, they also don’t know what “Keynesian” means. (Another brief video) More Mainstream Media Nonsense: US Federal Reserve Decision Expected to Boost American Economy B.B. sent us this: Freddie Mac Says Net Loss $4.1 Billion Items from The Economatrix: It’s All About The Dollar US Pensions Reaching A Breaking Point? US Federal Reserve’s Latest Bubble Threatens Mayhem Fed Expected to Pump Up to $1 Trillion Into US Economy

Fed Easing May Mean 20% Dollar Drop: Bill Gross. (Hat tips to Greg C. and B.H. for the link.) G.G. sent us this: ‘The World Does Not Need to End’ A Gold Bull and His Prediction: $10,000 an Ounce Are Asian Traders Preparing A Major Squeeze Of Silver Shorts? (Thanks to B.B. for the link.) B.J.G. sent this: Roubini: Japan is ‘Accident Waiting to Happen’ Items from The Economatrix: Why Growth Will Stay Too Weak To Ease Unemployment Economy Offers Mixed Picture Day Before Election UPS Says 2011 Rates Will Rise 4.9% The Next Global Economic Crisis The Utility of …

Frequent content contributor B.B. sent this: U.S. home prices expected to slide another 8% December 7th: Planned European Bank Run. (Thanks to Richard S. for the link.) Daniel Amerman: Bailout Lies Threaten Your Savings Most Americans Say the Recession Isn’t Over Yet. About three out of four Americans say the U.S. is still in a recession, with Republicans and women slightly more pessimistic about the economy than Democrats and men, according to a new AOL/Poll Position survey. Items from The Economatrix: A Paralyzed Fed Defers Decision On Monetary Policy To Primary Dealers In An Act That Can Only Be Classified …

Forbes: Nitty Gritty Numbers Suggest Downward Spiral Gold Will Outlive Dollar Once Slaughter Comes: John Hathaway Reader John L. mentioned a piece by Doug French: Bank Failures in Slow Motion Items from The Economatrix: Imminent Big Bank Death Spiral Piercing The Mystery of the Gold Market Shipping The Housing Market Overseas The Coming Silver Shortage Moody’s: US Companies Hoarding Almost $1 Trillion In Cash ForeclosureGate Explained: Big Banks On The Brink The Tipping Point Has Arrived

Gonzalo Lira: Signs Hyperinflation Is Arriving The market is ‘baking in” significant inflation. Investors are buying United States government bonds that effectively had a negative rate of return, because these bonds offer a guaranteed protection against inflation. (TIPS). The investors who took part in the $10 billion auction are betting that inflation, now at about 1 percent annually, will rise to a level that more than compensates for the premium they paid. The Inflation ‘Genie’ Unleashed: “By reducing real interest rates and trying to break the psychology of ‘Why spend today when I can buy goods cheaper tomorrow,’ they are …

Peter Schiff: Bernanke’s QE 2 Will Sink Just Like the Titanic 30 Reasons Why People Should Be Getting Really Nervous About The State of the U.S. Economy. Your Savings Will Be Funding ForeclosureGate Ambrose Evans-Pritchard: The Fed’s impending blunder Items from The Economatrix: AP Survey: Painfully Slow Economic Gains Into 2011 A Visual Representation Of The Wall Street-Main Street Disconnect Fed to Avoid “Shock And Awe” Stimulus

At The Daily Bell: The US $200-Trillion Debt Which Cannot Be Named. “Boston University economist Laurence Kotlikoff says U.S. government debt is not $13.5-trillion (U.S.), which is 60 percent of current gross domestic product, as global investors and American taxpayers think, but rather 14-fold higher: $200-trillion – 840 per cent of current GDP. ‘Let’s get real,’ Prof. Kotlikoff says. ‘The U.S. is bankrupt.’” Dollar Printing Feeding China Inflation Pimco likens US to ‘Ponzi’ scheme KAF sent this: HSBC Accused of Silver Manipulation Trigger Points, Black Swans, And Other Unpleasant Realities. (Thanks to K.T. for the link.) Gerald W. sent this: …

“Crisis is an Opportunity”: Engineering a Global Depression to Create a Global Government From The Telegraph: Greece reignites Europe debt woes And Harry is so humble, too: Reid: But for Me, We’d Be in Worldwide Depression Brett Arends: Warning: Retirement Disaster Ahead Items from The Economatrix: Durable Goods Orders Rise, Business Spending Cools Stocks Fall Amid Questions About Fed Plan Northfolk Southern 3Q Profits Soars As Shipments Rise Gerald Celente: The Economy, Wars, What’s Next? Night Of The Living Fed China Ministers: Dollar Printing Out Of Control

The Monetization of Lumber National 17.5%, California 22% Global Food Crisis Forecast As Prices Reach Record Highs Fed looks set for new round of monetary easing From Zero Hedge: A Quick Glance at Real World Inflation The chart says it all. The official hedonic-adjusted inflation figures are laughable. Federal Reserve Asset Buying May Reach $2 Trillion, Goldman’s Hatzius Says

Dollar Selloff Is Going ‘Too Far, Too Fast’: Strategist. (Thanks to Susan H. for the link.) Greece Likely to Default Within Three Years, El-Erian Says Seal Beach home from a price listing of $2,900,000 to selling for $900,000. Chasing the housing market down. Could someone be expecting a market crash? Watch the smart money: Insider Selling Volume at Highest Level Ever Tracked. (Thanks to Jonathan C. for the link.) Items from The Economatrix: Stocks Eke Out Gains On Mixed Earnings Consumer Confidence Rises Only Slightly in October Steel Industry’s Outlook Gloomer on Slower Growth Foreclosures Push Home Prices Down in …