Category: Economics & Investing

From frequent content contributor GG: Gold acquires new investment aura: The weight of gold coins sold by the US Mint far this year has exceeded the one million ounce mark, up 40% year-on-year Sticker Shock at Pump: Gas Prices Poised to Soar Jeff mentioned this over at Zero Hedge: Is The Fed Facing Margin Calls From European Banks? Knocking off two zeroes. (BTW, don’t gloat, the US Dollar may be next to have a 100-for-1 exchange): North Korea Revalues Currency to Curb Free Trade. (A tip of the hat to SSK for the link.) Trent spotted this: What Recovery? U.S. …

GG sent this: Far from being a safe haven, the dollar is the likely source of the next financial crisis Also from GG: We must get ready for a weak-dollar world Items from The Economatrix: UAE to Back Banks Amid Dubai Meltdown Professor Advises Underwater Mortgage Holders to Walk Away From Mortgage (Back in August, 2005, JWR warned us that these walk-aways were coming.) Furious Investors Warn Dubai it Will Never Raise Another Penny How Much Longer Can the Dollar Defy Gravity? South Africa’s Golden Age Coming to An End Senator Opposes Bernanke’s Renomination Few Signposts Mark the Road to …

Frank S. sent this: FDIC cites Loveland’s Advantage Bank; Announcement states business uses unsafe and unsound banking practices Paul D. recommended a short but excellent article by financial advisor, Jeff Clark. “In short, his advice is to learn to grow a tomato!” Items from The Economatrix: Dubai Debt Fears Threaten Credit Crunch 2, and RBS is Exposed Dubai’s Troubles Hint at Troubles Elsewhere Forget Gold and Silver, Invest In Garlic–How to Get “Stinking” Rich Most US Stocks Retreat on Fears Dubai Will Default on Debt Dr. Gary North: Fiat Currency Money Printing Leading To Decentralization and Operational Secession Investors Buy …

Damon sent this: U.S. dollar collapse could devastate economy: book Chad S. spotted an article about indigent families now having to bury dead family members themselves. C.K. in Texas mentioned that there was a PBS mini-series this past summer (available online) about how money gained its importance over time. It was called The Ascent of Money and the fourth episode would be of interest to many SurvivalBlog readers. C.K.’s description: “It talks about the hyperinflation that occurred in Argentina years ago (so bad that ranchers wouldn’t bring their cattle to market) and also about the fragile economics of Chinese and …

Chad S. sent this: Get ready for 65 percent tax rates. Also from Chad: “You could be running out of time to buy gold” The folks at The Daily Bell linked to this piece over at Seeking Alpha: High Gold Prices: It’s the Oil, Stupid Items from The Economatrix: Signs of Life in Stores as Holiday Shopping Begins Food Banks Nationwide Report More First-Time Users Russia to Invest in Canadian Dollars Recession “Is Even Worse Than Feared” Dubai Bankruptcy is a Taste of Things to Come. Global intervention has only bought us time Dubai is a Harbinger of Things to …

Bobbi-Sue mentioned an extensive Niall Ferguson interview. Bobbi-Sue’s comment: “Ferguson is still bearish based on historical norms and a few of his other popular ideas such as the China/America dance.” From Damon S.: Dubai Debt Woes Turn Ugly After It Seeks Standstill Deal Items from The Economatrix: FDIC Rescue Fund Slides into the Red Washington Post Closing All US Bureaus Outside of DC Britain Has Run Out of Money Cold Turkey Thanksgiving 2009 The Day The Dollar Died (Part 4–Arrogance of the Gods)

A news item flagged by GG: IMF: Banks Still Hiding Half of Their Actual Losses; $1.5 trillion in bad debt on bank balance sheets, and losses on these bad loans still threaten the solvency of many institutions. From El Jefe Jeff E.: One in Four Borrowers Is Underwater Also from Jeff E.: FDIC Reports 552 ‘Problem Banks’ As of Sept. 30, 2009 Items from The Economatrix: IMF Warns Second Bailout Would Threaten Democracy Wave of Debt Payments Facing US Cities Wall Street Pummels US Cities Over Billions in Fees on Investments Gone Bad More Bankruptcy Cases Filed Rates on 30-Year …

GG sent this: A Mad Rush as Gold Bugs Get the Boot FAF sent this from Fox News: Economic Growth Revised Down in 3rd Quarter From El Jefe Jeff E.: Stocks, Oil Drop After U.S. Consumer Spending Trails Forecasts Items from The Economatrix: Crude Prices Sink Down Near $76 Reports on Consumer Confidence, GDP Tug at Stocks Banks Earn $2.8 Billion in 3Q, Insurance in Red Reports on GDP and Consumers Signal Modest Rebound Fed Under Fire as Public Anger Mounts Goldman Sachs and US Demise Wall Street Plays Hardball Restaurants Brace for a Sour Season as Consumers Lose Appetite …

GG flagged this: The Debt Bomb: Uncle Sam on teaser rate Randy F. sent this: Payback Time – Wave of Debt Payments Facing U.S. Government Items from The Economatrix: Stocks Climb on Report Showing Jump in Home Sales Late Payments on Credit Cards Drop in 3Q IMF Chief: Global Economy Still Fragile AP Survey: Debt Stress Turns Shoppers into Scrooges Gas Prices Fall to Begin Busy Travel Week Bets Rise on Rich Country Derivative Defaults Gold Hits New High Among Rising Political Tension Couples Turn to “Shift-Parenting” to Stay Afloat End of the Checkbook: Bankers Drawing Plans, Could End by …

More than a dozen readers mentioned this London Telegraph article: Société Générale tells clients how to prepare for ‘global collapse’. Gee, folks must be catching on… Beepaw sent this: Bloomberg news: U.S. Housing Recovery Delayed to 2010 as Market Wanes. BeePaw’s comment: “It is remarkable that the [same] pundits who failed to see the crisis at all are now able to pinpoint its recovery. I don’t believe the markets will recover in 2010. Or 2011. Or 2012.” Peter D, suggested the latest installment of some speculative fiction from John Galt: “I Have Been to the Fields of Gettysburg” (The Day …

Dear Jim, You mentioned that someone with a Gold IRA might want to take the [warehoused gold] out and hold it in physical form after they turn 59-1/2 and are able to withdraw it without penalty. I see the merit in that, but I am a tax accountant and want to warn you about the tax implications. When you take money out of an IRA, it is taxed as ordinary income, even if you escape the penalty. You can very well get shoved into higher tax brackets than you’d otherwise ever pay. Because, as you know, so much of the …

From regular content contributor GG: Barron’s: Collapse in Treasury note yields suggests economic distress Chad sent us this: More fixed-rate home loans going into foreclosure Also from Chad: Latest bank fee is for paying credit cards off on time. Items from The Economatrix: Gary North: Gov’t Debt Default: How (Not If) Will It Happen The Critical Unraveling Of US Society What Has Government Done To The Dollar Commercial Real Estate Reality Check John Galta: American Hangover (Day the Dollar Died, Part II) Americans Save More But Earn Less As Rates Fall Central Bankers Blowing Bubbles In Global Stock Markets Financial …

Flavio liked this interview with Robert Kiyosaki, where Bob is blunt about who really call the shots in the US, and he reiterates his advice to buy silver. GG flagged this: World economy setting itself up for a bigger bust, says Marc Faber El Jefe Jeff E. sent us a piece about the 124th US bank failure in 2009: Florida regulators close bank Items from The Economatrix: Karl Denninger Says Watch This: Glenn Beck and the Dollar Carry. Even if you don’t agree with Glenn Beck, watch it, it’s important The New Yorker: How The Tax Code Encourages Debt Downbeat …

Dear CPT Rawles, To follow up on the recent thread about cashing out of precious metals ETFs: Long ago, I took your advice and got out of stocks for my IRA and switched to a Gold IRA with Swiss America . It’s done quite well and I was fortunate to read your advice several years ago. [Since then, most stocks went down substantially. Meanwhile gold has appreciated substantially, at least when denominated in US Dollars.] My question and I’m sure I’m not the only one, is this: I will soon be 59-1/2 years old. Should I continue to keep my …