Category: Economics & Investing

Economics and Investing:

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. …


Economics and Investing:

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: …


Economics and Investing:

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


Economics and Investing:

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


Letter Re: Making Change in a New Precious Metals Economy

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 …


Economics and Investing:

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 …


How to Prosper in a Salvage Economy, by Tamara W.

A salvage economy is a post-production economy. The economy is based on salvage and then reuse or remanufacture of salvaged materials. The current modern equivalent of this are those individuals who sort through trash heaps and dumps for recyclable materials. The historical equivalent of this are the stone masons in Egypt who tore down ancient monuments for building material. For example, the lost Pyramid of Djedefre was thought to have not been built until its foundations were found, including a mortuary temple and queens’ pyramids. Where did it go? Must of it was used to build buildings in Cairo from …


Economics and Investing:

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, …


Letter Re: Making Change in a New Precious Metals Economy

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 …


Economics and Investing:

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 …


Economics and Investing:

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): …


Economics and Investing:

Marc Faber Predicts: Debt Interest Will Lead to Default, Then War. Thanks to Brett G. for the link. From GG: The Debt Contretemps Everybody’s Ignoring Several readers mentioned this: Collapse of the euro is ‘inevitable’: Bailing out the Greek economy futile, says French banking chief. In the short term this could push the US Dollar up, and gold down. The soon-to-be-released Generation Zero documentary looks like is destined to be a success. I noticed that Andrew Sullivan of The Daily Dish is giving it some coverage. From J.T.: Greek FinMin unveils tax reform, wage policy GG sent a link to …


Letter Re: Just How Ugly Is The Sovereign Default Truth?

Hi Jim, I noticed this article on Zero Hedge today that I think you will find interesting, if you haven’t seen it already. This is regarding the fiat system and how it the assumptions it is build upon are probably faulty. This, coupled with human nature, make collapse of the fiat system very probable, if not a certainty. Lots of good data in this article as well. Thanks for all you do. I am learning much from you. I am now re-reading “Patriots” (after just finishing a stint that included ‘Alas, Babylon’, ‘Lucifer’s Hammer’, ‘Tappan on Survival’, your new book …


Economics and Investing:

From GG: California Teachers Pension Fund $42.6 Billion Short Truckman sent this; Commercial Real Estate’s Coming $1.4 Trillion Crisis From JDD: Report: 1 in 5 U.S. homeowners underwater Items from The Economatrix: Inflation: Ignoring Doesn’t Make It Go Away (The Mogambo Guru) Chapter XVI: When Shopping Is A Pleasure (The latest in The Day The Dollar Died series) Globalization is Killing the Globe: Return to Local Economies FEAR Davos 2010, Into the Bomb Shelter Why Silver Price Will Boom to $50/Oz. Bernanke Says Discount Rate May Rise “Before Long” Trade Gap Unexpectedly Rises on Imports How A New Jobless Era …


Economics and Investing:

Hugh D. zeroed in on this Telegraph article: China orders retreat from risky assets. The article begins: “China has ordered managers of its vast currency reserves to withdraw from risky dollar assets and retreat to core debt guaranteed by the US government, a clear sign that Beijing is battening down the hatches for fresh trouble on global markets.” Randy F. sent this article: Monopoly “Money “ –which notes that it is currently illegal to melt pennies or nickels, and the plans for further debasement of our currency. Reader JTH found this: Bailout panel cites commercial real estate danger UK central …