Category: Economics & Investing

Tim B. sent this: Dollar Crisis Looms if US Doesn’t Curb Debt And in related news, GG sent us this: US must cut spending to save AAA rating, warns Fitch GG also sent this one: The Coming Sovereign Debt Crisis, by Nouriel Roubini and Arpitha Bykere Yet another from GG: A Season Of Discontent: The only alternatives for which majorities express “a lot” of trust to help manage financial risk are close family members (64 percent) and their own efforts (74 percent) Items from The Economatrix: Stocks Rise as Optimism Builds About Earnings Retails Sales Fall Unexpectedly; Jobless Claims Up …

Reader Pamela E. suggested this article: America’s vulnerable half-speed recovery Frequent content contributors GG and Charley S. both sent this piece by Jim Kunstler: Economy has Six Months to Live Items from The Economatrix: Japan Airlines to File for Bankruptcy and Cut 15,600 Jobs UK: Work Until 80 Under Plan to Abolish Retirement Venezuela: Devaluation Sparks Chaos in Caracas MyBudget360: The Capture of Our Government by Wall Street Federal Reserve Seeks to Protect US Bailout Secrets Wall Street, Politicians Still Don’t Get It

Keith B. liked this piece by Ambrose Evans-Pritchard: America slides deeper into depression as Wall Street revels; December was the worst month for US unemployment since the Great Recession began. (Gee: I thought that companies were supposed to avoid December layoffs. So how will the January and February employment stats play out?) Obama considers levy for rescued firms. (Thanks to Rory for the link.) From GG: How nation’s true jobless rate is closer to 22% 2010 Bank Failures Start with Two. (The FDIC could become insolvent in the near future–which would mean another huge bailout…) A tip of the hat …

Trent spotted this on Yahoo’s Tech Ticker: Survivor america “it’s only going to get worse” Gerald Celente says Courtesy of Cousin Al: How Barter Saved Russia Items from The Economatrix: Debt Collectors Doing Huge Business in New York Iceland Blocks Repayment Deal, Sparks Global Outrage All Of Pakistan’s Oil Refineries at or Near Default Energy crisis may cripple Pakistan by the 15th Oil Rises Above $83 Amid Strong Chinese Demand Road Projects Don’t Help Unemployment Second Wave of Mortgage Defaults, Part 1 Biggest Bond Trader Dumping UK Gilts as Well as US Treasuries We’re All Icelanders Now Japan Airlines “About …

Don’t Think That it Can’t Happen Here Department: Chavez devalues currency by 50%. (Thanks to Damon for the link.) Eric. C. mentioned the latest piece by Dan Denninger: A “Macro Level” Look At The Economy The Economist makes a Bubble Warning: Markets are too dependent on unsustainable government stimulus. Something’s got to give. (A tip of the hat to GG fro the link.) KAF sent this: China Overtakes Germany as World’s Biggest Exporter. But wait! You should also read this: Contrarian Investor Sees Economic Crash in China. (Thanks to Rick V. and Darryl C. for sending the latter link.) Items …

Reader Thomas B.was the first of several readers to reference this article by Jim Jubak: Anarchy in the UK (and US, too)? Al wrote to mention that just as I predicted, the base metal value of US five cent pieces (“Nickels”) have again risen to above their face value. ($1.01 for $1.00 face value) I stand by my position that nickels are a good hedge against future inflation. If you have sufficient secure storage space, then gradually accumulate nickels! Items from The Economatrix: 10 Jobs That Will Get a Raise in 2010 Greece Faces Intrusive EU Surveillance Amid Reports of …

A bit more of the truth comes out: Geithner’s Fed Told AIG to Limit Swaps Disclosure. (Thanks to Shale for the link.) From GG: U.S. regulators warn banks on interest rate risk Brett sent us this bit of confirmation for the prevailing sentiment amongst Rawlesians: Krugman: 40 Percent Chance of Double Dip Recession Items from The Economatrix: Fed Wants Florida Bank to Boost Equity or Find Buyer Construction Spending Down Seven Straight Months Bank Lending Poised to Pick Up Bernanke Says Confident in Fed Strategy for Exit Blackstone’s Wien Sees Strong 2010 US GDP, Profits Fed’s Kohn Says Economy, Jobs …

GG sent this: Double-Dip Risk Seen in ‘Stall Speed’ Recovery: Stephen Roach Darryl C. suggested this: Time for Fed to disprove PPT conspiracy theory; Commentary: Analyst charges that government is manipulating markets Items from The Economatrix: GM Sales Fall 33% in 2009, Ford Up in December Pending Home Sales Fall 16% in November Pump Prices On Pace to Top 2009 High By Weekend US Public Pensions Face $2 Trillion Deficit IMF: Commodity Prices to Rise in 2010 Stores to Post Modest December Sales Gains European Stocks Remain Lower After US Jobs Data US Job Cuts Shrink to Two-Year Low in …

Frequent content contributor GG spotted this piece over at Zero Hedge: The Fed Is Preparing Quantitative Easing 2.0, MBS-Only Edition El Jefe Jeff E. sent this: Pending Home Sales Tumbled in November Joan mentioned this at Zero Hedge: US Avoids Technical Default By Three Days Items from The Economatrix: Robert Rubin: All Hell Could Break Loose Because of Huge Government Debt Something Evil This Way Comes Mortgage Demand Near Six-Month Low as Rates Jump Private Sector Sheds 84,000 Jobs in December If The Fed Missed that Bubble, How Will it See a New One? ECB’s Stark: No Bailout for Greece …

From GG: Personal Bankruptcy Filings Rising Fast Also from GG: Global Boom Builds for Epic Bust: Peter Boone and Simon Johnson Items from The Economatrix: BRIC to Rebuild New Economic World Order Banks to Blast Customers with New Bank, Check Fees US to Lose $400 Billion on Fannie, Freddie China’s 2010 Gold Rush Year-End Gold Charts 2010 Will Be Worse

Chad S. spotted this: Lower home appraisals appear to be up; Deals get killed as foreclosures, short sales make valuing property difficult. JWR’s Comment: The continuing waves of house foreclosures are bound to ratchet down both sales prices and in turn assessed valuations. This will lead to more state budget crises. The bottom line: If they can’t raise your home’ assessed value, then they’ll raise property tax tax rates. A corollary exists with income taxes. As more people lose their jobs or have their payroll hours cut back, then states will be forced to raise income tax rates. The 50 …

From G.G.: China provides 97 percent of the global supplies of rare earth elements, most coming from a single mine in Inner Mongolia I spotted this over at the Dr. Housing Bubble blog: Unlocking the Foreclosure Box – The Most Comprehensive Shadow Inventory Housing Analysis for Los Angeles County. Items from The Economatrix: Taxpayers Hit Harder as Bank Shares Nosedive 20 Million+ in US Got Unemployment Checks in 2009 Washington Times Slashes Staff 40% US Stocks Drop as Crisis Causes S&P 500’s First Decade Loss US Dollar and Treasury Bonds at Risk Following Fannie and Freddie Debt Monetization A Year …

GG sent an article link which will not be a news flash to SurvivalBlog readers: What Americans might face next: inflation CNN: Three reasons home prices are headed still lower. (Thanks to FG for the link.) Monroe sent us this: Death and Taxes: 2010 Graph of Federal Budget. Monroe’s comment: “Not for the faint of heart… but then if you aren’t using real money…!” Items from The Economatrix: US Economic Disaster Worse than Weimar or Zimbabwe Cities, Counties Take Back Corporate Tax Breaks China Becomes World’s Biggest Gold Buyer in 2009 Eurozone Credit Contraction Accelerates The Economic “Experts” Who Stopped …

Flavio sent the linkio to a PDF on the Shadow Inventory of real estate. Thanks to RVL for this: Banks take big hit to replenish FDIC funds Jerry L. forwarded this item by Doug French from Mises Daily: Gold and Guns

Survival is more than just having supplies, it is possessing knowledge, and specifically knowledge about free market (Austrian) economics and banking. One of the fundamental reasons for past productive success in the United States is because there were less intrusive government regulations, a smaller court system, and the division of labor was less cumbersome. Individuals were able to gravitate to where there was a demand that wasn’t currently being met, and were able to meet it without Big Brother wanting to not just regulate the behavior, but also steal a piece of the action if it was successful. If TSHTF, …