Category: Economics & Investing

Damon alerted us to this: Concerns grow over China’s sale of US bonds; Evidence is mounting that Chinese sales of US Treasury bonds over recent months are intended as a warning shot to Washington over escalating political disputes rather than being part of a routine portfolio shift as thought at first. Kevin S. sent us this from John Galt’s blog: Looking at some deadly charts. Another link from Kevin S. is for a video posted at YouTube: Gerald Celente Predictions Jim D. forwarded an interesting article about the financial crisis in Greece and how it may be a window into …

The various state budget crises are increasing in severity. Here is the news from California, and Illinois. (Thanks to GG, for both links.) Reader “Burrito Boy” forwarded this warning of darker days in Europe: Greece leads Europe’s winter of discontent Michael H. suggested a piece by Professor Bainbridge: What, Me Worry? Credit Default Swaps on US Treasuries. Oh, don’t miss his advice at the end of the article: “Although sovereign defaults are hardly unknown, things would have to get incredibly bad for the US to default on Treasuries. And if they got that bad, you’d probably have been better off …

El Jefe Jeff E. sent this one: U.S. New-Home Sales Drop 11.2%. “Unexpectedly”??? What planet are they from? I suspect that we’ll see a further drop, seasonally adjusted this summer, as mortgage credit tightens and as another wave of foreclosures further flood the housing market. GG mentioned an article in an Indian newspaper, wherein Jim Rogers says that the UK will lose its AAA bond rating this year, and that inflation and a currency crisis are inevitable. I noticed that The Total Investor Blog has had some great posts, recently. Items from The Economatrix: Bernanke: Record-low Rates Still Needed Stocks …

GG sent this: Buy farmland and gold,’ advises Dr Doom Also from GG: Prices are rising fast, even if the CPI isn’t Corey was the first of several readers to forward this: Banks at risk of going bust tops 700. Gee, with 7,000 banks in the country, that is a 1 in 10 chance that your bank is on the list. Those are practically Russian Roulette odds. From Flavio: Harvard’s Rogoff Sees Sovereign Defaults, ‘Painful’ Austerity Items from The Economatrix: Real, Uglier American Unemployment Death By Trillions of Dollars (The Mogambo Guru) US State Pension Funds Have $1 Trillion Shortfall …

Hollis wrote to mention that “John Galt” of the Shenandoah blog has completed his “The Day The Dollar Died” web novella. Adrian sent us this: Argentina Seizes Central Bank. GG flagged this one from Time magazine: How Big is the Threat from Option ARMs? Items from The Economatrix: FICO and the Credit Card Financial Prison: How a Three-Digit Credit Score Reflects Consumerism and Not Financial Independence Boeing Sends More than 1,000 Layoff Notices Citigroup Warns Customers it May Refuse to Allow Withdrawals Fastest Shrinking Restaurant Chains Stocks Waver in Early Trading on Earnings, M&A Poll: Economists See “Healthy” Expansion Underway. …

SurvivalBlog’s Editor At Large Michael Z. Williamson sent us this sign of the times: Frustrated Owner Bulldozes Home Ahead of Foreclosure. Robert H. and A.P. both sent us this link: South Carolina Lawmaker Seeks to Ban Federal Currency Reader H.M. e-mailed me to mention that he greatly enjoyed a recent radio interview with Jim Sinclair. Adrian recommended this commentary by John Rutledge: Banana Republics Need Compliant Central Banks. Here is an excerpt: “Wait a minute. Huge increase in government spending. Fast-rising debt. Tax the rich. Appoint political advisors to run the central bank. That’s us! “ Items from The Economatrix: …

GG sent this: Federal deficit at $430.69 billion through January GG also sent us the link to some commentary by Josh Lipton: What to expect from the commercial real estate crisis Courtesy of SurvivalBlog reader LT: Greece loses EU voting power in blow to sovereignty The Friday Follies continue: Four more US banks are closed. Items from The Economatrix: Premiums Jump 14% on Private Medicare Plans Asian Markets Drop On Surprise Fed Rate Hike “Crisis of Confidence”: Risks of US Defaults are Very Real Credit Markets Flash Hottest Warning Signal Since Crisis

SurvivalBlog’s “George Gordon” (GG) suggested this article: Five Million Workers to Exhaust Unemployment Benefits by June. Also from GG comes the link to this Seeking Alpha piece: The Municipal Bond Crisis Is About to Begin Yishai sent us a link by way of Glenn Reynolds (at Instapundit): International Monetary Fund to sell another 191 tons of gold. This is panic-driven market manipulation, folks! Items from The Economatrix: Low Inflation Gives Fed Room to Keep Rates Down Fewer People Falling Behind in the Home Loans Stocks Edge Higher as Fed Eases Bank Supports Oil Prices Up 12% in Two Weeks

JWR, I did some research after reading the recent “Making Change in a New Precious Metals Economy” article. The following will make it easier to determine the metal value of coins. Thank you for your great blog. Ounces of silver in pre-1965 coins: Silver bullion coin = 1 ounce Pre-1965 silver dollar = .77344 (90% silver, 10% copper) Pre-1965 silver half dollar = 0.36169 (90% silver, 10% copper) 1965-69 silver half dollar = 0.1479 (40% silver) Pre-1965 silver quarter = .18084 (90% silver, 10% copper) Pre-1965 silver dime = 0.0715 (90% silver, 10% copper) There is no silver in most …

Stock Market Analyst and hedge Fund Manager Barton Biggs: Stock A Safe Haven With Food And Firearms To Protect Against Doomsday Pillagers Here comes inflation! Reader Justin B. pointed us to this: January wholesale prices jump 1.4 percent. Justin notes: “That equates to a 16.8% annual wholesale price inflation rate!” And now, news that the ratcheting-up has begun: Fed bumps up rate banks pay for emergency loans. Greg C. sent us this: National Debt, Budget Deficit Scary Forecast for Taxpayers: Obama to Sign Fiscal Reform, Economists Predict Cutbacks, Tax Increases El Jefe Jeff E. forwarded this little red flag news …

Reader B.H. recommended this primer, published by a precious metals dealer: Buying silver, buying silver bullion for survival purposes. JWR Adds: I concur with nearly all of what they recommended on “survival”/barter coins. However, I do see the utility of buying some 1/2-ounce silver bullion coins. I also recommend buying some of the new pre-scored “Stagecoach” one-ounce silver bars a and rounds that can easily be chiseled into 1/4-ounce “bits”, minted by Northwest Territorial Mint. Also, readers outside of the U.S. should concentrate on buying whichever bullion coins are the most recognizable and trusted in your respective countries. In Australia, …

So, given that the USA Federal Reserve currency, the US dollar, is going down the tubes, something else will replace it. There will undoubtedly be attempts by various governments to reinstate some version of fiat money, but people are going to see through that, and will not accept it, since fiat money is, at it’s core, an undeclared, and essentially unlimited, tax on those who produce. Ultimately, people will probably return to a means of exchange with more than 4,000 years of history;  Gold and silver.  Here in the USA, in the aftermath of the coming economic collapse, there will …

Reader K.T. wrote me: You won’t believe the sweetheart deal that the Indymac boys were given by the FDIC. Reader JDD sent us this: Economist: China will soon revalue the yuan; Nation must slow economy down, deal with inflation threat, analyst says. Also from JDD come this alarming Zero Hedge article link: Move Over China: Beijing Sells Whopping $34.2 Billion Treasuries In December As Japan Becomes Largest Official Holder of US Debt Items from The Economatrix: Stocks Gain on Earnings, Deals, and Hope For Greece Foreigners Cut Treasury Stakes; Rates Could Rise Gasoline Price Hits New Low for 2010 Are …

Russ D. spotted this: China: the world’s next great economic crash; Like Dubai at the beginning of last year, China is now reaching the peak of a bubble. From Jonathan C.: Euro Area Headed for Breakup, SocGen’s Edwards Says Steven H. suggested this iStockAnalyst article: Forget Greece, The US Almost Had a Failed Treasury Auction Reader Sue C. forwarded this: Strong dollar hurts exports Survivalblog’s George Gordon notes that even Esquire magazine is trumpeting: “Inflation is coming, buy gold!” Items from The Economatrix: Economic Warnings from an Elderly Third Grader (The Mogambo Guru) The Day The Dollar Died (Part 17): …