Category: Economics & Investing

KAF sent this: Five minutes of waiting to exhale A 17 percent plunge in Citigroup Inc. today triggered a five-minute trading pause, making the bank the second company halted by the two-week-old circuit- breaker program created to prevent market panics From reader S.M.: The Third Depression Also from S.M: US State Budget Crises Threatens Social Fabric Items from The Economatrix: Derivative Market: Alive and Kicking Despite Reforms Banks Told to Hoard Cash in Case of Crisis New UK ATMs to Restrict Money Supply 46 US States Facing Greek-Style Crisis Oil Price Rises Over Tropical Storm Concerns Unemployed Face Abuse from …

Yishai sent us this (by way of Glenn Reynolds at Instapundit): Foreign Central Banks Going for the Gold RBS tells clients to prepare for ‘monster’ money-printing by the Federal Reserve. Here is a quote: “We cannot stress enough how strongly we believe that a cliff-edge may be around the corner, for the global banking system (particularly in Europe) and for the global economy. Think the unthinkable.” (Thanks to Brian B. for the link.) S.M. sent this: Biden: We Can’t Recover all the Jobs Lost Items from The Economatrix: Derivatives Blow for Wall Street Banks Under Historic US Reforms. Translation: The …

James Wesley: I noticed about two weeks ago, that the chart movement for the price of gold is almost a carbon copy of the price of silver, one goes up, so does the other in almost the same amount. Admittedly two weeks is not a long time but is is still uncanny. The charts are almost identical, only the values are different. Check the Kitco silver chart, and then select the gold chart on the left side then back to silver. Notice the movement is almost identical? This may not mean anything, but I think the odds are too high …

Ben Bernanke needs fresh monetary blitz as US recovery falters. (A hat tip to G.G. for the link.) As I’ve warned before, The Mother of All Bailout s(MOAB)is inexorable. It will continue, round after round, until the US Dollar is destroyed as a currency unit. Clint L. sent this: Silver Without a Cloud by Richard Daughty, aka The Mogambo Guru Items from The Economatrix: 20 Must-See Charts on America’s Disastrous Level of Government Spending California to Offer Program to Trim Underwater Mortgages Fannie Mae Gets Tough with Homeowners Who Walk Away Economy Faces Tough Road Ahead with Slower Growth The …

Frequent content contributor RBS sent this: New uses for silver to grow demand in next 10 years. K. in Montana forwarded this: Gold on Longest Winning Streak Since 1920. Reader Dan E. spotted a telling news item: More than 40 million now use food stamps The Friday Follies continue, with bank closures in New Mexico, Georgia, and Florida. Items from The Economatrix: Federal Reserve Cautions on US Economic Growth Bernanke Needs Fresh Monetary Blitz as US Recovery Falters Senate Republicans Defeat Jobless Aid Measure Over Deficit Fears Geithner: US Can “No Longer Drive Global Growth”

Charley suggested this piece by Ambrose-Evans Pritchard: Gold reclaims its currency status as the global system unravels Brian B. flagged this: Cash Crops: Buying Farmland for Income Also from Brian: Brown Brothers Warns on Deterioration in State and Local Government Deficits, Cautions of Comparable European Collapse Items from The Economatrix: Leaders Differ on How to Nurture a Global Economy BP Shares Down Sharply in London Government Lowers Growth Estimate for First Quarter Financial Stocks Lift Market After Financial Overhaul Euro “Collapse” Could Drag Europe Into Conflict

G.G. mentioned a Rear Clear Markets video clip that echoes something that I’ve been stressing for several years: Legendary investor Jim Rogers says that silver is an attractive commodity while gold remains at an all-time high. Courtesy of Brian B. comes this link: The US is Pushing Its Debt Towards a $57 Trillion Hole Yishai sent us this (by way of Glenn at Instapundit): Don’t Fear Inflation, if It Comes. (Oh, really? I guess he’s never visited Zimbabwe…) Brian H. flagegd this: China’s Desert Ghost City Shows Property `Madness’ Persists U.S. May Follow Britain’s Lead and Pass Bank Tax. Oh, …

G.G. suggested this: Niall Ferguson: Two year time horizon for US fiscal crisis Andrew H. spotted this piece over at Jesse’s Café Américain: Silver leaving the COMEX. Andrew asks: “[I]s there a reason why some of these well-heeled investors suddenly want their silver, and are either going in person to get it or arranging for armored car delivery? It makes one wonder what might be coming our way in the coming weeks.” Brian B. sent this: The Associated Press: Canada’s economy is suddenly the envy of the world Thanks to Brett G. for flagging this: NIA Releases 2010 U.S. Inflation …

Brian B. kindly sent this link: Financial Reform Is a Disaster For Banks, Consumers: Bove. Did you notice how the key topic of derivatives trading wasn’t even mentioned per se in this article? California on ‘Verge of System Failure’. (Thanks to Brett G. for the link.) Items from The Economatrix: Global Systemic Crisis/Second Half of 2010: The Global System’s Four Single Points of Failure The Euro’s Inevitable Failure Will Be Horrendous for All of Us Spain Could Test the Euro to its Limits Finding Gold in the Mainstream Fresh Economic Worries Trigger Fresh Rush into Gold Three Reasons You Should …

The soaring prices of gold and silver have been making lots of headlines, recently. All that I can say is that I told you so. I still recommend buying silver, on the dips! A preview for other States? Nearly Bankrupt Illinois Forced to Pay Through The Nose to Borrow Money. Gold’s Rise is “a Sign of Anxiety,” Not Inflation, ECRI’s Achuthan Says. “This next decade is going to be much more volatile…” Items from The Economatrix: Economy May Never Recover from Banking Crisis, Warns OBR 14 Reasons Why The US Government Will Never Have a Balanced Budget Again Russia to …

H.H. sent this: Venezuela Food Prices Skyrocket. H.H. asks: “How’s that Socialist Revolution workin’ out for ya, Hugo?” K.C. saw a story on CNBC that is of interest: ‘Serious Market Problems’ in the Fall—Gold to Hit $2500. Here’s an excerpt: “In the meantime, Schatz said investors should expect a rally through June and into August—before seeing ‘serious problems’ in the fall. …Taxes are going up next year and so on the surface, people are going to have less money to invest and less money in the economy,” he explained. “We’ve also got a municipal crisis coming on the horizon that …

Mark Skousen: Gold Surge Points to Higher Inflation Reader Isaac S. sent this: Greenspan Says US May Soon Reach Borrowing Limits The latest bank casualty in the FDIC’s Friday Follies: Nevada Security Bank. (It is notable that the pace of bank failures is more than double last year’s.) Items from The Economatrix: Fannie-Freddie to Delist Shares from NYSE Coffee Prices Jump 20% in One Week Deficit Terrorists Strike in the UK Job Woes Persist as Jobless Claims Rise Ambrose Evans-Pritchard: The Euro Mutiny Begins

Eric Sprott: Gold Running in Short Supply. (Thanks to Todd for the link.) Sharp Shepherd sent us this: More Than 90 Banks Miss TARP Payments Items from The Economatrix: Gold is an Armageddon Hedge Uncertainty Restores Glitter to an Old Refuge, Gold How All Of Us Pay for The Derivatives Market (Caution: There is a bad word in the title…..) It’s The Ratios, Stupid (Why the US Will Default on its Debt) Wholesale Prices Fall 0.3 Percent in May Home Construction Sinks, Building Permits Down The Snowball Scenario Sinks Sovereigns World Bank Says China’s Economy Slowing