Category: Economics & Investing

G.G. suggested this piece by veteran economist Howard J. Ruff: Why Gold and Silver Seem Stuck Also from G.G.: Chorus of QE calls is deafening. Stand by for price inflation, folks! K.T. sent a link to an interview with Gerald Celente: Double Dip Depression Will Lead Us Into War Readers of my novel “Patriots” might find this familiar: Fed Looks to Spur Growth by Buying Government Debt. ( A hat tip to Wade C. for the link.) This is a highly inflationary move! And speaking of inflation: Wal-Mart Prices Are Rising: JP Morgan Study. A 5.8% increase in one month! …

Watch This Interview Clip! Charles Biderman Fox Business July 30, 2010–Collapse Ahead? (Thanks to Mac H. for the link.) B.B. recommended the American Thinker essay The Death of the Dollar by Vasko Kohlmayer. This comes as no surprise: States Raising Cigarette, Gas and Sales Taxes to Cover Shortfalls. Why the US keeps minting coins people hate and won’t use. OBTW, don’t bother stockpiling them, since they are 88.5% copper, and hence it would take Weimar scale inflation to make their metallic content worth more than the coins’ face value. J.B.G. sent this: Commodity spike queers the pitch for Bernanke’s QE2. …

I’ve recently been asked by several blog readers and consulting clients about my predictions for the economy for the next few years. Here they are, in a nutshell: The US economy will remain weak for for at least five years. Both the commercial and residential real estate markets are unlikely to recover before 2018, especially as interest rates begin to increase. Noticeable inflation should begin around the Spring of 2011 and will become uncomfortably high by 2012. If the announced Federal income tax and capital gains tax increases do indeed go into effect, they will stifle the economy for the …

G.G. sent this: Economy Heading for a Systemic Collapse into Hyperinflationary Great Depression. Jonas mentioned a fascinating news segment filmed by a Dutch journalist, in Indonesia: Gold Dinar, Silver Dirham. AmEx sent this: Food Prices up as Consumers Feel Economic Pinch Another from G.G.: Chicago Bank Fails, 2010 Tally Hits 109 Job Figures Just Part of a Grim Economic Picture. (Thanks to AmEx for the link.) B.B. forwarded a link to a New York Times article: Jobless and Staying That Way RBS flagged this: One-fourth of Idaho work force’s paychecks cut

The Worrying Numbers Behind Underwater Homeowners. A bit of good housing news came in a recent report issued by real estate analytics firm CoreLogic: The number of mortgaged residential properties with negative equity declined slightly to 11.2 million by the end of the first quarter this year, down from 11.3 million at the end of 2009. The bad news: Those 11.2 million loans are 24% of all U.S. mortgages. Add the 2.3 million borrowers who are close to slipping underwater (those with less than 5% equity), and the numbers rise to 13.5 million — 28% of mortgages. B.B. sent this …

Chris G. mentioned: ACTA: The War on Progress, Freedom, and Human Civilization An interesting piece over at The Daily Bell: Why Bankers Didn’t See Collapse. Frequent contributor K.A.F. says: “States are taking on more debt. Here’s your state’s burden per capita“. JWR Adds: What I found amazing is Massachusetts. How can they tax their citizens so much, yet still end up short of funds? Lee C. recommended a 25 minute long BBC Radio Interview on the Credit Crisis and the Risk of Another Crash.

B.B. was the first of several readers that sent us this: Commodities – Wheat Soars; Rogers Sees ‘Much Higher’ Food Prices. Got your wheat yet? Stop dawdling! L.J. in England sent this: Food prices to soar 10% in time for the New Year. Reader J.C. sent this: Global Wheat Shortage Feared. “Boosters” spotted this: Is the End Game Hyperinflation or Debt Implosion? James Altucher: 7 Reasons Not to Send Your Kid to College. (A hat tip to L.L. for the link.) Allen E. forwarded a news item: A Run on Spanish Banks? K.A.F. sent this: World oil prices approach $82 …

Reader Brian B. wrote to re-emphasize the importance of the recently-released CBO report titled: Federal Debt and the Risk of a Fiscal Crisis. Brian’s comment: “Many people submit links to economic news to alternative media, but when the CBO (government entity) unveils a document that reaffirms the poor state of the economy, it becomes completely unnoticed by mainstream media. Perhaps your readers can reassure themselves how the outlook of the next decade might shape up to be.” From M.E.W.: Greenspan Says Home-Price Drop May Bring Back Recession M.M. sent us this editorial by former Reagan White House staffer David Stockman: …

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 …

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.)

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