Category: Economics & Investing

GG sent this: Pray For Inflation — It’s Our Only Hope. [JWR’s Comment: Well, its the government’s only hope. For the Citizenry, mass inflation will be wealth destruction. As I’ve noted before, inflation is essentially a hidden from of taxation.] Reader CZD sent this item: The Dow at 11,000 is Misleading. (CZD warns that he expects there will be multiple dips. I concur. This “recession” is far from over. I stand by my assertion, that we are actually in the early stages of of depression.) Items from The Economatrix: The Dow’s Up But Trades are Scarce, Worrying Bulls Jim Sinclair: …

Kevin S. recommended this from the Global Guerillas Journal: What Makes a Home Valuable? CBO chief says debt ‘unsustainable’. (Out thanks to reader S.M. for the link.) GG and Chad S. both flagged this: Gold hits record high for British investors; The price of gold has risen to an all-time high in sterling and euro terms. Also from GG comes this video clip: Meredith Whitney: Housing Will Fall Again S.M. sent this: Is the World’s Second Biggest Economy On the Ropes? Items from The Economatrix: Stocks Trade Mixed After Alcoa Results Fall Short February Trade Deficit Increases to $39.7 Billion …

Ben in Tenn. sent this item from Zero Hedge that shows that the MOAB is going global: IMF Bailout For Greece To Come At SDR Rate Plus 300 bps Plus 50 bps Service Charge, Greece Says “Thank You US Taxpayers”. Here is a quote: “The IMF, realizing it had a catastrophe on its hands, has caved in and according to Reuters will provide US taxpayer money to Greece at vastly below market rates.” Reader “F1F” recommended this from The Washington Post: Debt Burden Weighs on Developed Nations Items from The Economatrix: Greece Debt Fears Hit Fever Pitch Consumer Credit: OUCH! …

GG flagged this: Property Tax Rebellion Brewing After Real Estate Collapse. Here is my prediction on how this will play out: Property values will eventually drop by 50% in most of the more populous states. Assessed valuations eventually drop correspondingly, but only after a public uproar and some foot-dragging. Tax revenues will decline. State legislatures will respond, increasing property tax rates by 100%. Net result: The politicians still get their money. Also from GG: Total Fed Credit: A Credit to Fed Stupidity (The Mogambo Guru) K.L. in Alaska suggested this piece about U.S. Treasury auction shenanigans, posted by Chris Martenson, …

RBS sent us this from The New York Times: G.M. and Chrysler Pensions Underfunded by $17 Billion. (As Senator Everett Dirksen once famously said: “A billion here, and a billion there, and pretty soon you’re talkin’ about real money!”) Reader M.Q. suggested this article: Should the U.S. Sell Its Gold? [JWR’s comment: Our gold reserve (the ostensible “backing” for the US Dollar–although US dollars are no longer redeemable for specie), if currently liquidated would fetch only $288 billion. There are an estimated $829 billion paper (printed) dollars in circulation, with more than half of those dollars held outside the US. …

Leland suggested this blog series by Kellene Bishop: Hard-Core Financial Preparedness B&T sent us this from Shadowstats: Actual March unemployment 21.7%. (“March Employment Gain of 162,000 Was 114,000 Net Result of Temporary Census Hiring.”) Carla sent this scary bit of news: Petrol $9.00 a gallon in UK. Thankfully that is per Imperial gallon (1.2 US gallons) but that still works out to $7.67 per gallon. Items from The Economatrix: Santelli: $4 Gas, $150 Oil Coming this Summer Unemployment Benefits Expire for Thousands The Line Of Doom (The Mogambo Guru) What Does it Mean to be Middle Class in 2010? UK: …

Hugh D. suggested this, by the ever-cheery Ambrose Evans-Pritchard: Sovereign debt crisis at ‘boiling point’, warns Bank for International Settlements Brett G. suggested this: Report: Panicky Investors Pull Cash Out of Greek Banks Also from Brett G.: California’s $500-billion pension time bomb. D.S. sent this on: World stocks drop as Greek debt crisis intensifies. A comment from D.S.: “I had always thought the “Greek Solvency” issue had never been solved, and this article shows that I was correct. This is another example to add to the folder of Main Stream Media (MSM) using cheap plaster to hide things from the …

LTD sent a link to an article at Mish Shedlock’s site: L.A. Controller Says City Could Run Out of Cash by May 5th Reader M.S.B. flagged this: Mighty America’s five stages of rapid decline; Jim Collins’ danger signals: But can we halt the collapse of capitalism? Items from The Economatrix: Fed Keeps Eyes Out for Speculative Bubbles Job Openings Rise in Several Sectors in February Stocks Trade in Tight Range After Financials Rise Business Software Maker CA to Cut 1,000 Jobs

Eric S. sent us this: Peak oil production predicted for 2014; Predicting the end of oil has proven tricky and often controversial, but Kuwaiti scientists now say that global oil production will peak in 2014. Steve H. forwarded this: Potential Impact of Japanese Hyperinflation on the US Dollar From GG: China central bank sees dollar strength, global inflation “Ben in Tenn.” spotted this: Forget Greece…watch Cali. Here is a quote: “Isn’t it ironic that according to the Controller of LA’s biggest city, Cali may end up in a liquidity crisis sooner even than Greece. At least Los Angeles has undisputed …

M.A. sent this one: Jim Grant Wonders When People Will Wake Up And Realize That Currency Is Based On Nothing? Gary Dorsch: Greenspan Signals Warnings For Bubble-Maniacs From GG: Today’s ISM Manufacturing Report Screams Inflation Items from The Economatrix: Geithner: Disparity in Recovery “Deeply Unfair” Next Meltdown Will Be Driven By “Big Collapses In Emerging Markets”

Voting with their feet: “Atlas Shrugged” taxes blow up in Maryland’s face. Thanks to Richard Z. for the link. Marc Faber and Mish Shedlock on Inflation, Deflation, Doom and the End of Civilization. (Thanks to Aaron for the link.) RBS spotted this: Sharp Increase in March in Personal Bankruptcies. (So this is the “Recovery”?) Water bills go up in down economy as usage drops. (Thanks to RBS for the link.) Items from The Economatrix: Health Plan May Hobble Economic Recovery CBO: Student Loan Takeover Adds $52 Billion to Deficit Harrisburg, Pennsylvania May Miss Debt Payment; Go Into Chapter 9 Bankruptcy …

GG liked this article in Fortune: The coming inflation wave Brett G. sent us: ECB Official: World on Edge of Double Dip Recession Patricia in S.F. suggested: 60 Minutes Exposes United States Financial Collapse Items from The Economatrix: Cowboy Economics (The Mogambo Guru) Jobs, Manufacturing Reports Boost Stock Market Rising Factory Output Points to Economic Recovery Geithner Says Unemployment is Terribly High New Credit Report Rules Kicking in on Friday Stocks: Strong Quarter Ends with Loss Biggest Job Gain in Three Years Pushes Up Interest Rates

It appears that the precious metals bull market is resuming his run. I stand by my long-term predictions. Once again, buy on the dips. Michael W. sent this: Nickel rallies to 21-month high. As I’ve written before: Save your nickels! (They now have a base metal value of just over 6 cents. But just wait until the next Era of Inflation kicks in. Mark my words: Nickels will eventually sell at 3X, or 4X their face value. ) Rob C. mentioned an interesting audio interview with Andrew Maguire and Adrian Douglas. They describe the 100:1 naked leverage being used in …