Category: Economics & Investing

Reader Dan D. recommended this piece by Simon Johnson: Europe Risks Another Global Depression Commentary from Bill Pesek: Biggest Bubble in History Is Growing Every Day. He’s anticipating big time currency inflation in east Asia. (Thanks to Auby for the link.) Mike H. recommend this essay by Doug McIntosh, posted over at Steve Quayle’s site: When the Gimmicks Fail Items from The Economatrix: Shell Downplays Prospect of Quick Recovery in Oil Demand Despite Profits Rebound The Bernanke Reappointment: Be Afraid, Be Very Afraid Planned Layoffs Rise for First Time Since July Economic Report The Devaluation and Fight for Survival of …

SurvivalBlog’s Editor At Large Michael Z. Williamson flagged this:mentioned this at Market Ticker: Derivative Fraud? Where Are OUR Cops? GG flagged this: What Every American Should Know About the National Debt Also from GG: Evercore CEO Altman: Obama’s Deficit Will Cause An International Currency Crisis In The Next Two Years Tim R. was the first of several readers to send this: It is Now Mathematically Impossible to Pay Off the U.S. National Debt Items from The Economatrix: Mortgage Rates Edge Up Slightly Moody’s Warns US of Credit Rating Fears Sovereign Debt Fears Rattle Investors Greek Debt Woes Spread to Portugal, …

There has been a veritable torrent of bad economic news in the past few days. Here is just a sampling… Ponzi Scheme: The Federal Reserve Bought Approximately 80 Percent Of U.S. Treasury Securities Issued In 2009. (Thanks to Duane for the link.) George Gordon (“GG”) sent this: 20 Reasons Global Debt Time Bomb Explodes Soon Also from GG: Sprott: Gold to gain 30% in 2010, higher interest rates to hurt US economy and another from GG: Fears of ‘Lehman-style’ tsunami as crisis hits Spain and Portugal Chad S. forwarded this: North Korea’s economic moves bring new misery John G. liked …

From GG: Revelations of hidden Greek debt “last straw”. And here is a related news story: EU toughens demands on Greece Flavio sent this linkio: It’s Official: California Housing Production Reached New Low in 2009. Down 83% from the 2004 peak! Pioneering blogger Hugh Hewitt says: We Are Headed For A Fiscal Stroke. (A tip of the hat to Damon for the link.) Chad S. flagged this: U.S. May Lose 824,000 Jobs as Employment Data Revised Items from The Economatrix: Note from JWR: Cheryl (aka The Economatrix) wrote me to mention that there is up to two feet of fresh …

George Gordon (“GG”) sent this news item: Largest-ever federal payroll to hit 2.15 million Also from GG comes this link to a Seeking Alpha piece: U.S. Economy: Don’t Worry, Prosperity Is Just Around the Corner Yet another from GG: Rising FHA default rate foreshadows a crush of foreclosures Reader JDD spotted this over at The Daily Beast: The Dollar’s Scary Decline Also from JDD: Obama’s Budget Has One Small, Missing Piece…. For $6.3 Trillion Dollars Items from The Economatrix: US January Auto Sales Rise Unemployment Rises in Most Metro Areas Roubini Sees “Very Dismal and Poor” US Growth Ahead Bernanke …

I warned you, folks! Coin Composition Change Included in Obama’s 2011 Budget. Have you socked away your nickels yet? Do so before they start making them out of stainless steel! Gresham’s Law is still in force. (Thanks to CRD for the link.) Matt B. mentioned that the Geography of Recession interactive map has been updated. This is looking grim! The Other Jim R. forwarded us a link to this Zero Hedge piece: Brace Yourself for the Coming Gold Shortage GG sent this: White House to paint grim fiscal picture Michael Z. Williamson (SurvivalBlog’s Editor At Large) flagged this: Obama’s 2011 …

George Gordon (“GG”) sent this: In Coke We Trust; Investors now view a default by the U.S. Treasury as more likely than a default by the Coca-Cola Company. Sue C. sent us this: It only gets worse this year for commercial real estate Kevin K. flagged this: Kalashnikov Gun Factory Offers Food in Place of Salaries. JWR’s Comment: If they don’t have cash to pay workers, then they probably don’t have cash to pay the food suppliers, either. I suspect that some barter is going on. (Which would make me very happy, if I were a local farmer.) Items from …

Price Tags are Merely Suggestions: Haggling is Back (Thanks to Damon for the link.) Bill R. flagged this news story: Swiss warn UBS bank could collapse From Jeff D.: Bailout Cop: U.S. May Face Another Financial Crisis J.S. spotted this: Bailouts created more risk in the system From George Gordon (“GG”): UK claims it will end debt monetization this week Items from The Economatrix: Roubini: Greece is Bankrupt Greek Crisis Shows Euro is Too Big to Fail Soros Warns Gold is Now the “Ultimate Bubble” Are You Ready for the Coming Obama Retirement Trap? Truckin’ for God and Country (more …

Mac Slavo gets is all right in this piece posted in the SHTFPlan blog: Wealth Preservation, Investing, and Prepping in 2010. (Thanks to G.S. in the State of Jefferson for the link.) Damon sent this: U.S. Economy Grows 5.7 Percent in Fourth Quarter of 2009. JWR Adds: They’re calling it a “recovery”? That is laughable. I call it nothing more that the effect of many hundreds of billions of dollars in short term stimulus. Keep in mind that this will effectively be paid for with money borrowed from my children’s generation. The current presidential administration has spent more than $3.5 …

Reader Johnny G. recommended an article by PIMCO’s Bill Gross titled: The Ring of Fire. Johnny’s comment: “It is interesting to see how and where SurvivalBlog precepts and the predictions of well connected, mainstream bond investors’ converge.” Some folks in England are catching on to what privately owning gold means: How to live without banks. (Thanks to Karl P. for the link.) George Gordon (“GG”) sent us this: The Fed’s Anti-Inflation Exit Strategy Will Fail; Sooner or later the pressure to lend out excess bank reserves will be unstoppable. Items from The Economatrix: Our Financial Rulers are on Another Planet …

Banking crisis, currency fears. (Thanks to G, for the link.) Items from The Economatrix: 24 States Unemployment in the Red, 9 More Within 6 Months Is the Dow About to Dive 1,000 Points? Pakistan Collapse Could Trigger Global Depression and WWIII Walmart to Cut 11,200 Sam’s Club Jobs Bob Chapman: Are We in an Economic Depression? IRA & 401K Theft Plotted by US Government Doug Casey: Stock Market Set to Crash Home Prices Stabilize Further, But More Drops May Be in Store First-time Jobless Claims Drop Less Than Expected