Category: Economics & Investing

Sir, First, from one veteran to another, let me thank you, like so many others, for this outstanding blog. I would like to share my experiences with my like-minded brothers and sisters in the hopes that they too can fill their coffers of coins and silver bullion for free or pretty darn close to it. We most certainly all know the importance of tangible assets at this critical juncture in our Nation’s history. But with upward trend of gold and silver as of late, who wants to pay $23 or more for one ounce of silver? Not me. So I …

Reader Bill R. liked this piece by Brett Arends: The Great Mortgage Mystery. The article begins: “The big question from the mortgage meltdown isn’t why so many distressed homeowners are defaulting on their loans. It’s why any of them are still making payments.” Oh, and FYI, here is a list of non recourse (“mortgage walkaway”) states. 27 Signs That The Standard Of Living For America’s Middle Class Is Dropping Like A Rock Siggy recommend this white paper from QB Asset Management: Who is John Galt? Susan H. sent this: The 19 Countries Most Likely to Default: Ireland Surges Higher Frightening …

Harold Bradley warns: Far More Derivative Exposure Today Than Two Years Ago. He talks about “terrifying” risks. More about derivatives, and some immediate, huge, repercussions: Tavakoli: Biggest Fraud in the History of the Capital Markets California budget means lean times for the state – 5 reasons why the California economy will lag for years to come. High paying jobs gone, shadow inventory, state taxes, and re-writing history. Have you noticed that the melt value of a lowly Nickel (U.S. Five Cent piece) is now worth more than 120% of face value? It is not too late to stock up, while …

Several readers sent this: Prospects for US Economy Either “Fairly Bad”or “Very Bad” Warns Goldman, Sachs Siggy sent this: Silent Crash: Dow Continues Slide vs. Gold So much for the “buy and hold” strategy: Another prediction that California metro area price peaks won’t return until 2025 I’m adding this blog to my blog roll: Free Market Economics In A Story US Is ‘Practically Owned’ by China: Analyst Items from The Economatrix: IMF Sees Higher Deflation Risk; Fed Mulls More Aid IMF Sees Global Economy Gaining, US Growth Slowing Midnight Grocery Runs Capture Economic Desperation Jobs Crisis Extends to Unemployed, Lawmakers …

Market Ticker notes Uh, Wee Problem Here On Grains… Fed Officials Mull Inflation as a Fix Breakfast Prices are on the Rise Mr. Benson confirms the suspicion that the CPI is a manipulation of numbers. (Thanks to Ty for the link.) An Inflationary Cocktail in the Making Deflation? Both Fedex and UPS are raising their rates. Several readers sent me this: This is Starting to Get Very Real: Agricultural Commodity Prices Have Exploded and Now the Price of Food is Beginning to Rise. Japan faces food pressure from China Coffee Prices – percolating up!

p>KAF sent this: Illinois Pays More Than Mexico as Cash-Strapped States Sell Bonds Overseas For the How Gullible Do They Think We Are? Department: As bailout program expires, Treasury drops price tag to $50 billion and highlights successes. (Thanks to Chad S. for the link.) Florida Congressman Alan Grayson Documents Foreclosure Fraud K. in Montana recommended this: Lear Capital: Origin of Gold vs. Silver Ratio. Chris Martenson recently posted Prediction: Things Will Unravel Faster Than You Think The Incredible Two-Day Jump in US Treasure Debt (The Mogambo Guru) Items from The Economatrix: Weak Economy Has Nations Waging Currency War Consumers …

Watch the US Dollar Index. As I’ve mentioned before, 72 is he threshold to watch for. Below that, there could be huge currency trading turmoil, and formal devaluations. Reader Richard H. sent us this ominous article: Financial stability set back by debt woes: IMF. Here is a quote: “However, the fund said banks had made less progress in dealing with near-term funding pressures — nearly $4 trillion of bank debt needs to be refinanced in the next 24 months. ‘Overall, bank balance sheets need to be further bolstered to ensure financial stability against funding shocks and to prevent adverse feedback …

Jon M. sent this: Banks’ $4 trillion debts are ‘Achilles’ heel of the economic recovery’, warns IMF. IMF admits that the West is stuck in near depression Gary Shilling: Here’s Why House Prices Will Now Drop Another 20%. (Thanks to Zo for the link.) S.M. spotted this: Bernanke Tells the Truth: The United States is on the Brink of Financial Disaster U.S. Yields Will `Surge’ as Fed Increases Debt Purchases, Diam Forecasts. (Thanks to Susan H. for that link.) They used to call this nonsense “debt monetization” or more bluntly “monetary inflation”. But now they give it the saccharine-coated moniker …

Okay, so I told you so, folks. Gold and Silver have set new highs. There will still be some very scary dips in this bull market. Be wise. Buy on the dips! No comment necessary: State officials cancel access to welfare benefits on cruise ships and at all casinos. (Thanks to N.I.M. for the link.) Damon flagged this: ‘Delay and pray’ won’t work for commercial real estate Greg C. mentioned this: How the Housing Crisis Will End the U.S.A. as We Know It. B.B. sent this: Consumer bankruptcy filings climb 11% Those mysterious derivatives: French trader must pay $6.7 billion …

Reader Robert A. sent this: How to Make & Use Gold Test Solutions. Robert’s comment: “I recently entered a gold and silver exchange to sell, what I thought was silver, and upon testing discovered that it was a very thick silver plate. Below is a list of solutions used for various testing of gold and silver. I was informed that using the 14 karat gold solution works well for testing silver.” K. in Montana liked this piece over at the Rural Revolution blog: The Economics of Prepping Dan J. flagged this: S&P: $460 Billion Shadow Inventory [of distressed residential properties] …

$10,000 Gold? (Thanks to Siggy for the link.) Don’t Get Too Excited About Gold — It’s Actually Down Compared to the Euro US mint raises premiums on Silver Eagles by $.50 per coin Richard H. sent this: Cheap Debt for Corporations Fails to Spur Economy Items from The Economatrix: Treating Symptoms, Ignoring The Root Cause The Next Phase Of Gold’s Meteoric Rise The Recent Move in Silver is Just a Preview of What We Can Expect in the Future

Sir: I was wondering if you could tell me if it would be wise to buy pre-’65 [United States] silver coins, as I live in Canada. Do you think people would understand their value here? Also, any idea where I would get them? I am not having much luck with Internet searches. Thanks for your time. – Kirk in Canada JWR Replies: To be sure that they are recognizable for barter, you should buy the equivalent Canadian mint circulated coins. These available at your local coin shop. Ask for well-worn “junk” coins that don’t have a numismatic premium price. For …

Jon M. was the first of several readers to send this: Global employment crisis will stir social unrest, warns UN agency Reader M.E.W. forwarded this: Foreclosures sell at 26% discount Danny B. sent us this: Bad Spending Habits, Lack Of Savings Leave Consumers And Baby Boomers In Financial Crisis Thanks to Susan H. for sending this: How risky are uninsured bank deposits? Items from The Economatrix: Peak Gold Is Upon Us Buy Gold Young Man, Buy Gold Economy Gets Lift From Government Aid More FDIC Friday Follies: Regulators Close Small Florida, Washington Banks Aging Work Force Inspires Utility Worker Training

Is The Federal Reserve Out Of Control? Markets Around The World Brace For Impact As The Federal Reserve Powers Up The Printing Presses Reader A.S.W. notes: “I just returned from a Sam’s Club warehouse store in Florida. Their Maker’s Mark brand of toilet paper went up $3 per package. A week ago it was $14 now it is $17. And regarding sugar, the shelves at Wal-Mart and the Aldi [supermarket] were wiped out so I had to get a 50 pound bag at Sam’s. This also went up $3. a week ago it was $25 now it is $28.”s Puru …