Category: Economics & Investing

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. …

Leland suggested this blog series by Kellene Bishop: Hard-Core Financial Preparedness B&T sent us this from Shadowstats: Actual March unemployment 21.7%. (“March Employment Gain of 162,000 Was 114,000 Net Result of Temporary Census Hiring.”) Carla sent this scary bit of news: Petrol $9.00 a gallon in UK. Thankfully that is per Imperial gallon (1.2 US gallons) but that still works out to $7.67 per gallon. Items from The Economatrix: Santelli: $4 Gas, $150 Oil Coming this Summer Unemployment Benefits Expire for Thousands The Line Of Doom (The Mogambo Guru) What Does it Mean to be Middle Class in 2010? UK: …

Hugh D. suggested this, by the ever-cheery Ambrose Evans-Pritchard: Sovereign debt crisis at ‘boiling point’, warns Bank for International Settlements Brett G. suggested this: Report: Panicky Investors Pull Cash Out of Greek Banks Also from Brett G.: California’s $500-billion pension time bomb. D.S. sent this on: World stocks drop as Greek debt crisis intensifies. A comment from D.S.: “I had always thought the “Greek Solvency” issue had never been solved, and this article shows that I was correct. This is another example to add to the folder of Main Stream Media (MSM) using cheap plaster to hide things from the …

LTD sent a link to an article at Mish Shedlock’s site: L.A. Controller Says City Could Run Out of Cash by May 5th Reader M.S.B. flagged this: Mighty America’s five stages of rapid decline; Jim Collins’ danger signals: But can we halt the collapse of capitalism? Items from The Economatrix: Fed Keeps Eyes Out for Speculative Bubbles Job Openings Rise in Several Sectors in February Stocks Trade in Tight Range After Financials Rise Business Software Maker CA to Cut 1,000 Jobs

Eric S. sent us this: Peak oil production predicted for 2014; Predicting the end of oil has proven tricky and often controversial, but Kuwaiti scientists now say that global oil production will peak in 2014. Steve H. forwarded this: Potential Impact of Japanese Hyperinflation on the US Dollar From GG: China central bank sees dollar strength, global inflation “Ben in Tenn.” spotted this: Forget Greece…watch Cali. Here is a quote: “Isn’t it ironic that according to the Controller of LA’s biggest city, Cali may end up in a liquidity crisis sooner even than Greece. At least Los Angeles has undisputed …