Category: Economics & Investing

Reader Bill R. sent this: Sin Taxes for 2009 at all time high. OBTW, since when is owning a gun a “sin”? G.G. forwarded a link to a piece in The Economist: Gold: Store of value. Also from G.G.: States Dodge Defaults as California May Cut Worker Pay Items from The Economatrix: The Big Crash–America Plunges Into Depression for Real Gold Keeps Rising as Panicky Investors Look for Security Harry Schultz on the Power Elite, Free Markets, The Internet, and Why Gold Is Going Much Higher China Cuts Rare Earth Export Quota 72%, May Spark Trade Dispute With U.S. Inflationville …

Federal budget gap through June tops $1 trillion amid GOP resistance to more government spending. (Thanks to KAF for the link.) Thanks to Brett G. for flagging this one: Fed Warns Economy May Take Five or Six Years to Recover Items from The Economatrix: Obscure Weimar Collapse Book a Cult Hit Central Banks Start to Abandon the US Dollar Top for Silver $100 Per Ounce? Stocks Mixed After Disappointing Retail Sales Data Home Loan Applications Down 2.9% Retail Sales Drop 0.5% in June Oil Dips Below $77 as US Crude Supplies Rise Watchdog: Small Banks Struggling Despite Bailouts A Modern …

Bill O’Reilly calls it: Economic Disaster on the Horizon. Craig S. sent this: Americans credit scores at new low. “Boosters” flagged this: Presenting The Wall Of Worry: The 50 Ugliest Facts About The US eCONomy. KAF mentioned: Secret gold swap has spooked the market Also from KAF: China to Fight Price Manipulation With Heavy Fines (Hoarding of goods will also be subject to fines of 2 million yuan.) Items from The Economatrix: Stocks Surge After Alcoa, CSX Report Strong Profit Job Openings Drop in May as Hirings Stay Weak Market Slump Expected to Dent Profits at Big Banks Chinese Rating …

G.G. was the first of several readers to mention this New York Times article: Crisis Awaits World’s Banks as Trillions Come Due. Be ready folks. We could be on the precipice of a global debt implosion that will make the current crisis seem small, by comparison. I’ve warned you before, folks: be ready for bank runs. Here is a quote: “Banks worldwide owe nearly $5 trillion to bondholders and other creditors that will come due through 2012, according to estimates by the Bank for International Settlements. About $2.6 trillion of the liabilities are in Europe.” From David W.: Historian warns …

Jimmy Rogers: ‘I don’t have investments in the UK’. (Thanks to G.G. for the link.) Items from The Economatrix: Disappearing Perk: Employee Stock Options Americans May Be Slammed with Shocking Tax Hike US Shopping Center Vacancies Approach Record High Before The Bell: US Stock Futures Down Over Worries On Growth Oil Prices Rise in Volatile Trade European Banks are Worse than Wall Street World Sovereign Default Risk Rose 30% as European Debt Crisis Deepened

KAF flagged this: Venezuela nabs two for trying to ‘Twitter’ a run on banks. Consider this fair warning on a new threat: “flash mobs” that could trigger crises including bank runs, and runs on key commodities. Do you remember how Johnny Carson made one offhand remark that sparked “The Toilet Paper Crisis of 1973”? The burgeoning social networks could be used to spread a panic far and wide, whether it is justified or not. SurvivalBlog reader Tony B. sent us this: Dollar weakness reflects optimism. Tony’s comments: “How upside-down is people’s thinking when the value of the dollar falling is …

An interesting piece, over at the Dr. Housing Bubble blog: Frankenstein real estate market – $3.5 trillion in commercial real estate debt and $10.3 trillion in residential real estate debt. Items from The Economatrix: AP Analysis: Economic Stress is Easing More Slowly Investors Shake Off Slowdown in Services Growth Deficit Hysteria in Times of Depression New, Nearly Dictatorial Powers Go to Fed Economic Gloom Shrouds Spain Market Forecaster Sees Plunge to 1,000 Dow Repeats Great Depression Pattern Retailers Launch Their Own Stimulus Packages

Randy K. zeroed in on this: Wall Street Apocalypse: The World of the Doomsday Investors G.G. flagged this: Implications of a Likely Economic Downturn Items from The Economatrix: Job Creation in Private Sector Remained Weak in June So What Exactly is a Double-Dip Recession? Mortgage Rates Scream “BUY” But Who’s Listening State Pension Woes Only Worsening ISM Says Service Sector Growth Slows in June Post Office Announces 2-Cent Rate Increase. (Say, what happened to that much-touted deflation?) Pump Prices Head Down Again After Holiday Weekend

G.G. was the first of several readers to mention this article by Ambrose Evans-Pritchard: With the US trapped in depression, this really is starting to feel like 1932 Todd M. sent us this: Banks Too Big to Fail, Too Big to Bail Out: Roubini B.B. sent this: Investors Fear Rising Risk of US Regional Defaults Bernanke Created Half of 234 Years’ Worth of Money Supply. Here is a quote: “The U.S. turned 234 years old yesterday, and yet over half of the nation’s money supply was created since Helicopter Ben took over the flight controls four years ago. No wonder …

B.B. spotted this item in The New York Times: Robert Prechter’s Market Forecast Says ‘Take Cover’ Tom J.in Vermont sent this: Davidowitz: US Economy a “Complete Disaster” Thanks to Chris G. for this link: Barack Obama: The great jobs killer “Falcon” suggested this piece by Bob Chapman, who suggests that thing might get downright medieval: Struggling and Faltering to Manage Economic Recovery. Chapman writes: “As a result of this and other failures we are about to experience the worst economic collapse since 1348 [during the Great Plague.]” Items from The Economatrix: Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion Why Canada’s …

SurvivalBlog’s Poet Laureate, George Gordon (“G.G.”) sent us this one: Illinois facing ‘outright disaster’ amid budget crisis Items from The Economatrix: 40% of Florida Home Sales are Foreclosures Fed Made Taxpayers Unwitting Junk-Bond Buyers Denninger: The Clock is Running Out Gold Miners and Explorers Face Serious Supply Problems Pelosi: Unemployment Checks Fastest Way to Create Jobs Market’s Swoon Prompts Fear of the Dreaded “Death Cross” A Depressing Thought: Deflation Pending Home Sales Plunge Record 30% Layoffs Climb as Housing Slump Deepens 1.3 Million Unemployed Won’t Get Benefits Restored Stock Futures Head Lower to Open Third Quarter New Jobless Claims Rise …

Reader M.T. sent us this link: Gerald Celente: The Crash Is Underway H.L. sent this: Fears of Global Slowdown Hammer Stock Market Payback Time – Budget in the Red, Illinois Has Stopped Paying Bills (thanks to B.B. for the link.) Items from The Economatrix: Obama Says US Economy “Strengthening” Despite Weak Data US Auto Sales Seen Slowing with Recovery in Doubt City Budgets Snuffing 4th of July Fireworks Joint Chiefs Chair Reiterates Debt Is National Security Threat BP Shares Soar on Takeover Talks Greek Austerity Rage Spills Into Athens Streets One Million Protest Italy Austerity Package Crackdown! Is the Massive …