Category: Economics & Investing

Several readers sent this news item to file under “I told you so”: Gold hits all-time high as investors seek haven Arnaud de Borchgrave: Stock Market Time Bomb? Reader Rich in Montana notes that recently “two minutes of honesty slipped out”, on the David Letterman Show: Hmmmm…. A Crack In The Dam? Bill Downey sent me his essay “Brother Can You Spare a Trillion?” Since SurvivalBlog is intentionally light on graphics (in deference to our readers that use mobile devices), I’m pointing you to the essay (with charts) which is already posted at the excellent Zero Hedge blog. The charts …

Les K. sent this: Federal Reserve opens credit line to Europe Breakfast with the FT: Nouriel Roubini. (Thanks to Mike O. for the link.) Kevin S. forwarded this: U.S. Debt Shock May Hit in 2018, Maybe as Soon as 2013: Moody’s. Fed Restarts Currency Swaps as EU Debt Crisis Flares. Read between the lines! Cui bono? Stocks Mostly Hold Gains After European Bailout SEC: Regulators Yet to Determine Cause of Plunge Items from The Economatrix: US Gold Coin Sales Surge as Investors Flee Risk Who’s on the Hook for the IMF’s Greek Bailout? Fears Intensify About Greek Crisis’ Impact on …

Why does this not give me a warm, fuzzy feeling? The Fed now owns Red Roof Inns. (Thanks to SurvivalBlog’s Editor at Large Michael Z. Williamson for spotting that article.) Food stamp tally nears 40 million, sets record. (Thanks to Brian B. for the link.) G.G. sent this: America has good reason to worry about Greece. Also from G.G.: EU close to €500 billion boost for rescue plan Reader Ralph N. ran across an article in The Wall Street Journal that confirms the warning that I made three years ago: Will Nickel-Free Nickels Make a Dime’s Worth of Difference? Plan …

EMB mentioned: The Crisco Alternative    o o o Mark P. spotted this: Farmers Cope with Roundup-Resistant Weeds    o o o Tina W. alerted me to this article: Rodents pose new health threat in Zimbabwe’s towns. If our economy ever collapses, rats will be with us, in large numbers!    o o o The America I left – reactions of a retiring expat. (A hat tip to Brian B. for the link.)

Morris S. suggested: Six investing rules for a worst-case scenario Mark Frey Calls It: Europe Enters Full Scale Financial Panic David Rosenberg: Euro Breakdown Could Drive Gold to $3,000. Rosenberg’s target for the Dow: 4,800. (A hat tip to Flavio, for the linkio.) |Courtesy of SurvivalBlog’s Poet Laureate, George Gordon (“G.G.”): U.S. Debt Shock May Hit In 2018, Maybe as Soon as 2013: Moody’s Also from G.G.: We Are Out of Money; American governance won’t begin to inch forward until the political class faces basic facts. Items from The Economatrix: UK Budget Deficit to Surpass Greece Productivity Growth Ebbs, Hiring …

G.G. suggested: The Subprime Rhyme with U.S. Debt Debacle, by Michael Pento Also from G.G.: Greek debt crisis offers preview of what awaits U.S. RBS suggested this article: Drowning in home debt Reader V.A.F. sent this: Freddie Mac Posts First Quarter Loss of $6.7 Billion, Asks Treasury for $10.6 Billion (Our tax dollars, funding our NINJA neighbors’ McMansion fanatsies.) Items from The Economatrix: Britain Must Cut Deficit Fast, Europe Warns America at the Crossroads and the War on Gold S&P to Gold Ratio: On Verge of 1.00 Breakdown Auto Industry on Road to Recovery But Pace Slows Federal Government Outpaces …

GG sent this: Inflation Worries Permeate U.S. Also from G.G.: Nouriel Roubini: US faces inflation or default Valerie F. sent us a link to a great Fox News interview with Ron Paul about the Greece-soon-to-be-USA problems. Chad S. sent this: Trader’s typo may have triggered record Dow plunge The latest Friday Follies: Bank closures in Minnesota and Florida. Items from The Economatrix: Moody’s Warning Portugal of Possible Debt Downgrade Angela Merkel: EU Future At Stake in Greece Crisis Chinese Markets Slide as Jitters Take Hold Hundreds Seek to Fill Positions After Illegals Fired UK Mortgage Lending Dives 83% Three Die …

Stocks were down yesterday, but precious metals were up. Its a good thing that you are a SurvivalBlog reader, and wisely got out of stocks and into silver and gold, long ago. G.G. sent this: Long-term unemployment soaring Also from G.G.: John Williams: A Hyper-Inflationary Great Depression Is Coming In a recent issue of his excellent (and free) Outside The Box e-newsletter, John Mauldin had these comments: “It now looks like almost 30% of the Greek financing will come from the IMF, rather than just a small portion. And since 40% of the IMF is funded by US taxpayers, and …

CMBS Delinquencies Hit Fresh Record, Now at $51 Billion, 268% Increase. (Thanks to G.G. for the link.) Also from G.G.: Still No Credit Where It’s Due (Commercial and industrial loans have contracted 19% in the past 12 months. Consumer credit is down 6% in the year to February, when it stood at the same level as June 2007.) RBS sent us this: Idle rail cars generate cash for Boise Also from RBS comes this article in Der Spiegel: The Mother of All Bubbles Could Push Euro Zone into Bankruptcy. Thanks to Steve S. for forwarding this: China May ‘Crash’ in …

Nic suggested a piece over at Seeking Alpha: Richard Russell’s in Cash and Gold: ‘No Time to Be Cute’ Courtesy of Matt R. comes this article link: Warren Buffett Worries About High Risks of ‘Significant Inflation’ Around Globe Brett G. sent this indicator of a bond market crash in the near future: Dow-Jones: I Told You So 14 Months Ago Items from The Economatrix: Japan Public Debt of 200% of GDP Makes Crisis Inevitable Where Has All That Lost Wealth Gone? Bernanke Admits Printing $1.3 Trillion Out of Thin Air Europe’s Web of Debt What Will They Tax Next? Stocks …

El Jefe Jeff E. sent this frightening news on price inflation: US inflation up 2% in March. I’ve already warned you: As the Treasury monetizes its way out of the recession, be ready for mass inflation, folks! Jon in Wyoming sent this: Euro Sales Extend as Morgan Stanley Mulls EU Breakup Also from Jon: Roubini Says Rising Sovereign Debt Leads to Defaults Yishai suggested this piece by Ronald Bailey of Reason magazine: Peak Everything?; Forget peak oil. What about peak lithium, peak neodymium, and peak phosphorus? Items from The Economatrix: Analysis from Dan Denninger: Bernanke is Getting Scared Goldman’s Shares …

Note the fait accompli tone of this NPR article that of course inevitably leads to the conclusion that there will be either massive tax increases, or mass inflation in the near future: The Federal Debt: How To Lose A Trillion Dollars. (Thanks to Gedan for the link.) Frequent content contributor Chad S. flagged this important article over at Zero Hedge: Treasury Redeems A Gargantuan $643 Billion in Treasuries in April. Want a good belly laugh? If so, then read this item from Chad S.: Corporations ride a consumer spending spree to better earnings as recovery gains steam. Here is Chad’s …