Category: Economics & Investing

The fallacy of cheap home prices and the two income trap – dual income households underscore massive housing inflation. Nationwide home prices overvalued by 25 percent. Reader Judy G. sent this: “My family likes the Rice-a-Roni mixes. I would get them at Kroger often for $1.00 a box. Suddenly the price went to $1.47 a box. I switched to Wal-Mart (I hate to shop there) and found them for $1.12 a box. After many weeks, the Kroger price went to the” everyday low price” of $1.25. I am working on a substitute. I make a veggie cornbread for my parrots …

K.T. sent this: The New Auto IRA Is Just Highway Robbery. Here it comes, folks. This is just first step in nationalizing IRAs and 401(k)s! Brett G. suggested this item: Many Homeowners Expect Home Values to Fall Further. Items from The Economatrix: Spike In Layoffs Feed Fear of Faltering Recovery California Home Sales Drop by 22% in July It’s Going to Get Worse…A Whole Lot Worse UK Sinks Deeper Into the Red Entering A Death Spiral? Tensions Rise In Greece as Austerity Measures Backfire Death and Joblessness Regulators Shut Down Big Chicago ShoreBank, 7 Others And So it Begins: Gold …

“David 5.7” wrote: “I live here in the north east. all brands of toilet paper have gone from 4.5 inches in width to 4 inches, with a slight increase in price. so if you buy and 8 pack roll your are actually getting one roll less per pack than you would have 10 months ago.” Attributed to inflation: China Current Account Surplus Declined 8%. (Stocks in China region dropped after Shanghai city inflation increased to 3.9% and China’s current account surplus declined 8%.) South African Linked Bonds Get Bids for 7 Times Amount Offered. (Thanks to Damon for the link.) …

Ellen Brown: Could 62 Million Homes Be Foreclosure-Proof? (Thanks to J.H.B. for the link.) Brian F. forwarded this: Jobless claims rise to highest level in nine months. RBS sent this: Sugar beet growers worried there might not be 2011 crop Items from The Economatrix: Obamanomics is Why There is No Recovery Connecticut May Have Just a Week’s Worth of Cash Double-digit Jump in Bankruptcies 12 New Ways to Safeguard Your Money China Doubles Korea Bond Holdings as Asia Switches from Dollar

Reader B.L.W. notes that the price of a box of girl scout cookies will be $4 per box this year. Gee, 12 Tagalong or Samoa cookies for $4. That is 33 cents per cookie! BLW also mentioned that Troops are required to sell cookies, or else they can’t hold any other fund raising events this year. As previously mentioned in SurvivalBlog: Wal-Mart Quietly Raises Prices. (A whopping 5.8%) Speaking of Wal-Mart, Kelly in Kansas mentioned: Okay, so I know Wal-Mart can be tricky, but I bought a 25 lb bag of Great Value Sugar (I am canning like a crazed …

Yikes! $1.342 trillion budget deficit for 2010. (Our thanks to Rourke for the link.) B.B. suggested this article over at Zero Hedge: The Dallas Fed Reminds That The Economy Is Doing Much Worse Than In The Administration’s Worst Nightmare US Says Bankruptcies Reach Nearly Five-Year High. (A hat tip to KAF for the link.) M.L. recommended: When Will Financial Armageddon Begin? Norman A. spotted this: Marc Faber – “Don’t touch US bonds” Also from Norman: Tensions Rise in Greece Ex-Bank of England Official: Dumping Bush Tax Cuts May Bring Depression Items from The Economatrix: Unemployment Spreads Like a Plague Accountability …

Reader Tyson R. notes: While shopping with my wife, I picked up a bag of corn chips for the girls and didn’t notice a big difference in price, $3.99. That has always been the price as long as I can remember. The bag was the same color, about the same size as before and assumed it was the typical 16 ounce bag, to my dismay when I looked at the content weight it was only 10 ounces. Inflation doesn’t always come in the price tag but in the shrinking of the volume you get. Calculating the inflation on corn chips …

KAF sent us this: Barney Frank: Abolish Fannie and Freddie California Governor Schwarzenegger Orders Furloughs After Top Court Rules. (Thanks to B.B. for the link.) Items from The Economatrix: The Horrific Derivatives Bubble that Could Destroy Entire World Financial System The Bond Market Is Signaling Trouble Ahead Oil Falls on Report of Rise in US Supplies US Economy Nears Point of No Return The Only Investment Worth Having

Today I’m launching a new blog column, titled Inflation Watch. It is intended to expose the myth that “there’s no inflation” at present here in the United States and in other First World countries. I’m not sure if this column will become a permanent fixture at SurvivalBlog, but given the recent massive government overspending and monetization, I suspect that I’ll have plenty of material for Inflation Watch.. If you have any present-day personal accounts, or if you spot any news items that show significant inflation, then please e-mail the links to me. These can include details on the shrinking sizes …

US Bankruptcies Reach Nearly Five Year High, up 11 percent from a year ago. Items from The Economatrix: Some Stores Finding Deep Discounts Aren’t Enough Factories Aid Bumpy Recovery, Housing Still Weak Russian Grain Export Ban Starts The Purpose Behind the Engineered Economic Collapse The Dallas Fed Reminds that the Economy is Doing Much Worse than in the Administration’s Worst Nightmare Another Threat to Economy: Boomers Cutting Back

G.G. sent this: Another Illinois Bank Fails. KAF flagged a Fox Business new report: Fed’s Hoenig: Record-Low Rates a ‘Dangerous Gamble’ Andrew H. spotted this: 800 interested in 5 jobs Items from The Economatrix: Economic Growth Prospects Dim in US After Retail, Trade Reports US Cities Face Up to Massive Cuts Stocks Rise On Earnings, Economic Reports Oil Breaks Losing Streak, Prices Climb Wheat is New US Gold “Hindenberg Omen” and Imminent Market Crisis Savings Accounts Will Become Obsolete if Inflation Rises Next Week Greek Economy Deeper in Recession than Forecast

Chris in Virginia liked this piece over at Sharon Astyk’s blog: Things Fall Apart – Slowly California’s economic crisis de jour: We Want Our IOUs Morris S. liked this piece by James Rickards at The Financial Times: Fannie and Freddie’s bond market upheaval. “OSOM” recommended a piece over at the GATA about the silver exchange traded fund (ETF) – SLV. OSOM’s comment: “Both SLV (and GLD for Gold) are not safe investments! I would not touch either of them with a ten foot pole.” G.G. sent this: Schiff: The Fed Is Feeding An Addiction By Continuing Quantitative Easing Also from …