Category: Economics & Investing

Market pundit Robert Wiedemer recently had the nerve to call gold “the biggest, baddest bubble of them all.” What myopia. He’s looking up at gold’s position only because his vantage point is from the veritable crater formed by the collapsing U.S. Dollar. Gold is simply rising to its natural level, amid a bevy of fiat currencies that are in a frantic race to the bottom. The precious metals are nowhere near the end of the current bull market. China Says Fed Easing May Flood World With `Hot Money’ Fed Will ‘Self Destruct,’ Policy ‘Deeply Flawed’: Ron Paul Sullivan: The Coming …

Ay, Carumba!: California borrows $40 million a day to pay unemployment benefits. No doubt, higher payroll taxes will be coming soon for Californians. Obama returns fire after China slams Fed’s move. [JWR’s comment: The Obama Administration’s position on the Quantitative Easing monetization scheme is like a teenager claiming that he can pay his VISA Card balance with his MasterCard.] I guess you’ve all seen the recent jump in the spot price of silver. FWIW, I’ve been touting silver since February 2001, just before it bottomed. I’m standing by my prediction of $50+ silver. I’ll grant that I was early when …

A Daily Bell interview: Rick Rule on Scarce Commodities, the High Price of Gold and the Sale of Global Resources Several readers sent this: Zoellick seeks gold standard debate Quantifying What QE 2 Means for Future Inflation and Gold and Silver Prices  JBG sent this from a Wall Street Journal blog: Number of the Week: $10.2 Trillion in Global Borrowing Items from The Economatrix: Fed’s Trillions Purchase of Bonds is a Fraud Caught In A Lie: Bernanke Promised Congress the Federal Reserve Would Not Monetize the Debt But Now That is Exactly What is Happening Currency Wars, Debase, Debt Default …

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