Category: Economics & Investing

How Zombie Banks are Ruining the Future, by James D.

The banks of the world are in a mess, but thankfully they are sorting out their problems. Except that they’re not. In the boom years, banks gave out more and more mortgages to riskier and riskier home owners, with the understanding that if things turned really bad, these mortgages would be terrible loans that would lose a fortune. So when things did turn bad and the home owners could no longer pay for the mortgages, these mortgages bankrupted the banks that gave them out. Except they didn’t. The problem with mortgages for banks is that they don’t know how bad …


Letter Re: Coupon Warrior!

Mr. Rawles, I was very happy to read the recent SurvivalBlog article about the importance of couponing as a means of stocking up. Without using coupons there is no way my family could have the variety of food storage it has. I would like to add a couple of tips GRITS didn’t mention though. I like to use this web site Coupon Database to find coupons on products I want. You simply search for a product and it comes up with a list of everywhere you can find the coupon, whether you can print it online (coupons.com doesn’t seem to …


Economics and Investing:

Marc Faber recommends: invest in a farm surrounded by barbed wire and guarded by Dobermans. (Thanks to G.G. for the link.) I spotted this over at NewsMax: Gingrich: Obama Repeating Mistakes From the Great Depression. K.A.F. flagged this: What to Expect if Bush Tax Cuts Expire. The congresscritters in Washington are so desperate for revenue that they will likely reanimate both the higher income taxes and capital gains taxes. I predict that this will shut down the economy. Some optimists will call it a “double dip” recession. I ‘ll describe it more accurately: stepping off a cliff, a la Wile …


Economics and Investing:

From G.G.: The Aftermath Of The Global Housing Bubble Chokes The World Banking System. Also from G.G.: “This debt is like a cancer,” says Erskine Bowles, co-chairman of President Obama’s debt and deficit commission Richard S. spotted this: The Irish Leave the EU. Do you recall my prediction of higher taxes–perhaps in some desperate and creative ways–to make up for state budget shortfalls? See: When Quinn the Governor gets here. (A hat tip to Tamara at the View From The Front Porch blog, for the link.)


Coupon Warrior!, by GRITS (Girl Raised in the South)

You look at the economy, and you are alarmed. You see the direction the world appears to be headed, and your eyes glaze with near panic. You realize you must prepare for disasters and shortages, but you are overwhelmed by the scope of the project and wonder how you can ever afford to build a stockpile of necessities. I hope I can throw out a few ideas that will help you build up that stockpile over time with a painless, cost-effective method. I’ve always hated to shop. The grocery store was a place I raced through, snatching only what I …


Practical and Affordable Food and Medicine Rotation

Jim, In addition to stores of long-term food in #10 cans (Mountain House and cans from the LDS cannery), I keep about a six month supply of “grocery store” canned and boxed food and a multiple-year supply of OTC medicines. A lot of this stuff goes unused because I’m pretty bad at rotating and while they are items we like, we just don’t eat them that often. Every year around the holidays I box up a ton of stuff and donate it to the food bank. The tax deduction I take is the “fair market value” (i.e., current grocery store …


Economics and Investing:

Several readers mentioned this: IMF Says U.S. Financial System May Need $76 Billion in Capital G.G. suggested a piece by Niall Ferguson: Sun Could Set Suddenly on Superpower as Debt Bites. China Becomes Second Biggest World Economy Reader “AmEx” (American Expatriate) spotted this: Fed’s Bullard:Worried About Possible Deflationary Outcome For US Also from AmEx: Top Hedge Funds That Dodged Crash, Rode Market Back Turn Gloomy


Economics and Investing:

Brett G. sent this: Fed’s Bullard: US at Danger of Japan-Style Financial Crisis. The latest over at Dr. Housing Bubble: Banks cherry picking individual foreclosures that show up on the MLS. Frequent content contributor K.A.F. sent this: SEC Provision Shocks Observers “A modern day depression” Rosenberg sees “tough slogging” for the economy. (Thanks to Trent H. for the link.) Rep. Bachmann: U.S. Faces ‘Disaster’ From Financial Reform Bill K.A.F. forwarded this one: AP survey: A bleaker outlook for economy into 2011


Seven Letters Re: A Doctor’s Thoughts on Antibiotics, Expiration Dates, and TEOTWAWKI

Hi Jim, In response to the letters sent to you regarding my article, the FORTE version of the antibiotics described would be appropriate for full-grown men and all but the most petite women (less than, say, 100 pounds or so). Children would be best served with the 250mg fish antibiotic dose. Frequency of these medications is from 2-4 times a day, depending on the individual drug. The risk of under-dosage would be suboptimal progress in healing. Overdosage often manifests itself as diarrhea.. Treatment length is usually from 5-10 days. A good internet drug index can be found at rxlist.com. If …


Economics and Investing:

Flagged by G.G.: Jim Rogers predicts a new recession in 2012 Also from G.G.: Drip after drip of deflation data I was doing some web wandering, and found this over at Gold Eagle: The Coming Silver Supernova Reader K.S.B. sent a link to a CBO report on the U.S. debt crisis that is a must read. The key word: unsustainable levels of debt. There are some articles discussing the CBO report in The American Spectator and in The New American. John L. mentioned an article about counterfeit silver coins. Frequent content contributor KAF sent this: North Dakota, Alaska lead US …


Economics and Investing:

AmEx (American Expatriate) sent us this piece by Charles Hugh Smith: Six Reasons to Expect Slow Economic Growth Ahead G.G. sent this: Hussman: Betting on a Bubble, Bracing for a Fall. GIC (Singapore ) Says World May See Recession Sooner Than Expected. (A hat tip to M.W. for the link.) Phip flagged this from Phil Stock: America is 234 Years Old, and Today it is Finished. Reader Steve K. suggested this news piece: America Now: Friends and Neighbors. NBC’s Ann Curry travels to Ohio to take a personal look inside the lives of families who have lost jobs, homes and …


Economics and Investing:

S.J. sent us this link: The Scariest Unemployment Graph I’ve Seen Yet Dave D. suggested this article: U.S. may face deflation, a problem Japan understands too well Reader “AmEx” (American Expatriate) sent us this: Uncle Sam has worse woes than Greece From reader RBS: U.S. Rescue May Reach $23.7 Trillion, Barofsky Says Geithner: Let Tax Cuts Die. (Can you detect the desperate need for revenue?) A hat tip to B.G. for the link.


Changes for 2011, The Taxman Cometh

Recent news articles about U.S. tax law changes have prompted dozens of SurvivalBlog readers to contact me with their concerns. Some of these e-mails asked me for advice on how to minimize the impact of these tax law changes. First let’s go over the changes in the tax law that have been announced: 1.) The Federal income tax rates are increasing starting with tax year 2010, with the top tax rate jumping to 39.6%. Meanwhile they are reinstituting the death tax, creating higher capital gains taxes, and the elimination of some exemptions for people that are married and for those …


Economics and Investing:

SurvivalBlog’s Poet Laureate G.G. sent this: Nielson Probability of US Hyperinflation or Debt Implosion Both G.G. and John G. suggested this article by Ambrose Evans-Pritchard: The Death of Paper Money F.G. mentioned: The Middle Class in America Is Radically Shrinking. Here Are the Stats to Prove it K.A.F. sent this Fox news item: Treasury Plans to Sell 30% More of Citi Stake.


Economics and Investing:

KAF sent this: Bernanke Says Extending Bush Tax Cuts Would Maintain Stimulus to Economy. Frequent content contributor B.B. sent this: Chinese Central Bank Outlines Plan To Ditch The Dollar As The Yuan’s Peg SurvivalBlog’s Poet Laureate G.G. spotted this: White House predicts record $1.47 trillion deficit Items from The Economatrix: Sales of Previously Occupied Homes Falls 5.1% These 72 Analysts Believe Gold Will Go Parabolic to Between $2,500 and $15,000 Per Ounce Infowars.com Poll: Majority Believe Road Warrior Depression Coming Nothing Was Sacred: The Theft of the American Dream Economic Meltdown: The Final Phase