Category: Economics & Investing

Brett came a link to this “must read” piece by Robert Wiedemer: A Coming Avalanche of Inflation Also from Brett: Davidowitz: This Market Is a Sucker’s Rally. A video of some truth that they let slip into CNBC: Stay Clear of Western Markets and Currencies. Global investing analyst Martin Hennecke warns: “Sovereign debt crisis in the western countries is really getting underway…” and “The blow-up of sovereign debt is the final step of the financial crisis.” Hennecke is also bullish on commodities and warns of a global financial meltdown with high interest rates and high inflation. (Our thanks to George …

By way of the Appenzell Daily Bell: Germans Desperate Over EU, Greece Rogers: Goldman May Fuel 20 Percent Market Tumble. (Out thanks to Brett G. for the link.) GG suggested this Forbes opinion piece: Will Japan Default? The Fox forwarded this: Greek Bailout Is a High-Wire Act. They are starting to use the “D” word. (Default.) Items from The Economatrix: Could Germany Quit Euro Over Greek Crisis? Rivals May Not be Smiling at Goldman Sach’s Predicament Long Bank of Ireland Forced to Sell Off Assets FEMA Faces Own Fiscal Emergency Unemployment Rises in 24 States

Yishai recommended this article: Released to Near Silence, the U.S. Treasury 2009 Financial Report Shows Dire Course Sue C. suggested an essay by Herb Mayer: An Economics Lecture No Student Will Ever Hear Items from The Economatrix: 10 US Cities in Economic Freefall Exxon’s Income Tax: $0 John Paulson: The Man Who Made Billions Betting on the US Housing Crash Goldman Sach’s Client-First Pledge Exposed as Lie Black Gold, Yellow Gold (The Mogambo Guru)

By way of the Appenzell Daily Bell: George Soros Warns that the EU May Collapse. From Damon S.: 14 Pieces of Really Bad News for the U.S. Economy The number that I mentioned in the blog on Saturday was too low. Here is the correction: U.S. shuts eight more banks; 50 total have been closed this year. Items from The Economatrix: Consumer Mood Unexpectedly Worsens in April US Housing Starts Up Bill to Restore Jobless Aid Clears Senate Hurdle Pensions Crisis “Threatens Entire UK Economy” $4.00 Gas by the End of 2010?

GG flagged this piece by Tyler Durden, over at Zero Hedge: Why Are Silver Sales Soaring? That is significant news. Think about it: Annualized, that means that effectively, the entire US silver mining production is being devoted to producing Silver Eagles planchets. The law of supply and demand is inescapable. So I’m I standing by my long term price predictions for silver. Also from GG: 33 states out of money to fund jobless benefits. Reader Chad S. notes: The Federal government deems all $5, $10 and $20 Federal Reserve Notes (FRNs) minted before the 1996 series to be unfit for …

EMB sent us this: Bank for International Settlements: Brace for Impact Items from The Economatrix: Markets Could Be Derailed Again, Warns Soros New Jobless Claims Unexpectedly Rise By 24,000 Bernanke: US Unemployment Likely to Remain High During “Recovery” Going For Broke In L.A.? SEC Accuses Goldman Sachs of Defrauding Investors Stocks Tumble as Goldman Charged with Civil Fraud Impact of Volcanic Ash Surfacing for US Businesses The Latest Friday Follies: Regulators Shutter 5 Banks; Total for 2010 Now 47 Housing Construction Points to Market Recovery

Reader Steve C. sent this: Foreclosure Rates Surge, Biggest Jump in Five Years The editors of The Daily Bell alerted us to this news article: Expert: Bear Market Can Last for Another Five Years Ray T. suggested this: IMF Prepares For Global Cataclysm, Expands Backup Rescue Facility By Half A Trillion For “Contribution To Global Financial Stability” Items from The Economatrix: Rise in Jobless Claims Underscore Wobbly Recovery Stocks Edge Higher on Mixed Reports, UPS Outlook Low Stock Market Volume: It’s Even Weaker Than You Think Oil Jumps to $86 a Barrel Treasurys Slump After Bernanke, Beige Book Bond Report …

I’ve heard a lot of suggestions about bartering.  Some of them are good ideas, while others might be dangerous.  Bartering is just trading, either goods for goods, goods for services, or services for services. First of all, we need to ask why we are bartering at all.  If we need to barter, it is probably because we need (or just want) something we don’t have, and someone else needs or wants something that we have.  If something isn’t exchanged by both parties, then it’s essentially a begging or charity situation. It is best to put yourself in a position where …

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. …