Category: Economics & Investing

Oil Should Be Around $10 a Barrel: Analyst. here is a quote: “I honestly think that if there were no investors using oil as an asset that the price of oil right now would be $10 or $15 or $18, but it wouldn’t be anywhere near where it is,” Beutel said. Jeff Nelson opines at The Street: U.S. Government Prepares for ‘Crisis’. (Thanks to G.G. for the link.) The Death Of Cash? All Over The World Governments Are Banning Large Cash Transactions. Its all about maximizing tax revenue. G.G. suggested this by Martin Hutchinson: Combining the Worst A bellwether event? …

Mozambique Police Fire At Crowds Protesting Prices The National Inflation Association reports: The U.S. Path to Collapse Russian Panic Buying Fuels Food Price Speculation

Gold Rallying to $1,500 as Soros’s Bubble Inflates. (Thanks to B.B. for the link.) From The Daily Bell: WSJ Discovers the Austrians & Boettke – but not the Mises Institute Mort Zuckerman bemoans BHO‘s band of fools: The Most Fiscally Irresponsible Government in U.S. History. (A hat tip to Patrick S. for the link.) Oregon man pleads bankruptcy fraud, hiding gold. Apparently, he failed Cache Construction 101. From K.A.F.: Problem bank list climbs to 829 Items from The Economatrix: Top Economists: The Second Great Depression Has Arrived Struggling Cities Shut Firehouses in Budget Crises Mish: 10 Leading Retailers Close Stores; …

You’ll pay 6 to 7% more this weekend for your steak and hamburger. This one is from Pravda (so my usual jaundiced eye proviso applies) Doomsday Scenario: Food Prices to Shoot Through the Roof. Some more about the CPI hedonics trickery that I mentioned: Chris Martenson on fuzzy numbers. Reader Jim P. mentioned that his local politicos in the Shenandoah Valley are doing away with a decal but keeping the fee! County Decals No More; $20 Fee Will Appear On Personal Property Tax Bills JP Morgan: Food Prices Are Actually Rising, It’s Just That Retailers Haven’t Passed It On… Thanks …

Bernanke: Fed Will Take “Unconventional Measures” If Needed. “…the Fed will consider making another large-scale purchase of securities if the slowing economy were to deteriorate significantly and signs of deflation were to flare.” (A hat tip to Deborah M. for the link.) Its Official: China is Unloading its Treasury Bonds John Williams of ShadowStats Says Economic Data Will Get Much Worse. Trapper Mike sent this: Ron Paul questions whether there’s gold at Fort Knox, New York Fed. To clarify, part of his concern is that physical gold may indeed be stored there, but that it might actually belong to other …

In 2008, shortly before the currency was effectively abandoned, the inflation rate in Zimbabwe hit a ludicrous inconceivable 897,000,000,000,000,000,000,000 percent per year. (An 89 sextillion percent inflation rate!) So now instead of Zim dollars for practical currency, they are using the South African Rand, the Botswana Pula, the British Pound Sterling and the United States Dollar for most transactions. It will be ironic, if and when the US Dollar begins to inflate. Like us, Zimbabweans may soon feel “stuck”, holding withering US Dollars. OBTW, some bad news from Zimbabwe, that came to us by way of Cathy Buckle’s blog: “Enter …

S.C. flagged this: Policy Options Dwindle as Economic Fears Grow. S.C’s comment: “Wow, even the New York Times gets it!” Chris P. sent this New York Times article: Housing Fades as a Means to Build Wealth. G.G. sent this: S&P Says US Should Act to Protect AAA-Rating. G.G. flagged Part 2 of Gonzalo Lira’s excellent essay: Hyperinflation, Part II: What It Will Look Like My hero, Dr. Walter Williams comments: Avoiding the Looming Disaster of Social Security (Thanks to Don W. for the link.) Sue C. sent this: Economy slows to 1.6 percent as trade gap widens Items from The …

Deflation Delusion Continues as Economies Trend Towards High Inflation Reader Bret F. notes that in August, his local structural steel prices increased as follows: 1” x 1” x 1/8” angle iron from 42 cents per foot to 47 cents per foot, 4” x .237 wall steel pipe increased from $5.26 per foot to $6.26 per foot. A 20% rate hike for Health Insurance in California? Yikes!

A reader asked me clarify what was meant by “exiting the market.” It’s important to know the difference between exiting the stock market and taking distributions from their tax-deferred retirement accounts (IRAs, 401(k) accounts, and so forth.) It is possible in most cases to exit the stock market without taking distributions from those accounts. They can simply change (“re-allocate”) the investments inside those accounts. For example, an employee might re-allocate her 401(k) at work from a stock mutual fund into a money market fund. This is not a taxable event, as long as the money remains in the 401(k) plan. …

The National Inflation Association recently posted this article: Decoupling Now, Currency Crisis Soon Reader J.D.G. notes: “The County Landfill had a punch card system that equated to $3.83 per load for household trash. If you went every week, it would cost you approximately $200 a year. The County did away with the punch cards at the end of the fiscal year with about six months notice. All the folks who bought extra punch cards to “lock in” the price rightfully howled. The new fee is $7.00 per load, an 82% increase. Going every week will now cost you $364 per …

Frequent content contributor Jeff B. sent this: US Said Preparing New Laws to Seize Americans’ Retirement Accounts. As I’ve written before: Governments at all levels will be desperate for revenue, throughout this currently unfolding depression. Expect them to find new and creative ways to pry into your wallet. Stock markets face a ‘bloodbath’, warns SocGen strategist Albert Edwards. (Thanks to Jon M. for sending that link.) Reader S.M. sent: What the Double Dip Recession Will Look Like This was inevitable: ‘Jingle Mail’: Developers Are Giving Up On Properties. (A hat tip to David W. for the link.) The BHO Administration’s …

The Old Farmer wrote: “I’ve been buying a Whopper Jr. and a small bag of French fries from the Dollar Menu at Burger King for about two years now on my way home from an extra-long shift that I do off farm. It’s been $2.12 for so long I kept dimes and pennies in my change holder. This week the dollar menu was gone. The same meal was now $2.43. That’s a ‘whopping’ increase, without getting out the calculator, that is about 15 percent.” Tony on Colorado mentioned: “You may be interested in taking a look at the web site …

I spotted this linked over at The Drudge Report: Dow Faces Bouncy Ride to 5,000: Strategist The trillion dollar bailout you didn’t hear about – Commercial real estate values plummet again yet banks hide losses. (Thanks to B.B. for the link.) J&M suggested a piece by Rick Ackerman: Few May Imagine What is Coming Erik M. flagged this: Global outlook casts shadow over Fed retreat. Erik’s comment: “Sounds eerily familiar to parts of Chapter One of a book I’ve read a couple of times.” Items from The Economatrix: Stocks Slip as Caution About Economy Returns Scarcity of Jobs Put More …

Sheryl N. wrote: “There is a nice discussion over at Homesteading.com about the various tricks used nowadays to shrink the content of a package without looking like it, reducing portion amounts but charging the same, et cetera.” Frederick D. flagged this: Health Insurance Costs Expected to Rise Sharply in 2011. (I pity those who bought in to the propaganda that health care costs would go down under Obamacare!) John M. in Florida notes: “I have recently bought quart-sized containers of different brands of yogurt at the grocery store and noticed that the level of yogurt was about an inch below …