Category: Economics & Investing

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 …

M.A. sent this one: Jim Grant Wonders When People Will Wake Up And Realize That Currency Is Based On Nothing? Gary Dorsch: Greenspan Signals Warnings For Bubble-Maniacs From GG: Today’s ISM Manufacturing Report Screams Inflation Items from The Economatrix: Geithner: Disparity in Recovery “Deeply Unfair” Next Meltdown Will Be Driven By “Big Collapses In Emerging Markets”

Voting with their feet: “Atlas Shrugged” taxes blow up in Maryland’s face. Thanks to Richard Z. for the link. Marc Faber and Mish Shedlock on Inflation, Deflation, Doom and the End of Civilization. (Thanks to Aaron for the link.) RBS spotted this: Sharp Increase in March in Personal Bankruptcies. (So this is the “Recovery”?) Water bills go up in down economy as usage drops. (Thanks to RBS for the link.) Items from The Economatrix: Health Plan May Hobble Economic Recovery CBO: Student Loan Takeover Adds $52 Billion to Deficit Harrisburg, Pennsylvania May Miss Debt Payment; Go Into Chapter 9 Bankruptcy …

GG liked this article in Fortune: The coming inflation wave Brett G. sent us: ECB Official: World on Edge of Double Dip Recession Patricia in S.F. suggested: 60 Minutes Exposes United States Financial Collapse Items from The Economatrix: Cowboy Economics (The Mogambo Guru) Jobs, Manufacturing Reports Boost Stock Market Rising Factory Output Points to Economic Recovery Geithner Says Unemployment is Terribly High New Credit Report Rules Kicking in on Friday Stocks: Strong Quarter Ends with Loss Biggest Job Gain in Three Years Pushes Up Interest Rates

It appears that the precious metals bull market is resuming his run. I stand by my long-term predictions. Once again, buy on the dips. Michael W. sent this: Nickel rallies to 21-month high. As I’ve written before: Save your nickels! (They now have a base metal value of just over 6 cents. But just wait until the next Era of Inflation kicks in. Mark my words: Nickels will eventually sell at 3X, or 4X their face value. ) Rob C. mentioned an interesting audio interview with Andrew Maguire and Adrian Douglas. They describe the 100:1 naked leverage being used in …

Mike M. sent this article on The Greece Crisis, American Style: State Debt Woes Grow Too Big to Camouflage Thanks to Damon for sending this: Morgan Stanley: The Rally Is Near Its End The dollar’s danger: A debt-driven collapse? (A hat tip to GG for the link.) Also from GG: Housing market’s recovery appears at risk Items from The Economatrix: Central Banks Stashing Away Gold at a Brisk Pace America: Prepare for an Avalanche of New Taxes An Economic Puzzle Bernanke Can’t Solve Oil Rises Near $84 with Weak Dollar

Four readers sent me this blog piece: The RentenDollar: A conspiracy theory OR Please tell me where I’m wrong Asian Ocean Carriers Slashed Fleets GG sent this: Sell-off in US Treasuries raises sovereign debt fears;Investors are braced for a further sell-off in US Treasuries after dramatic moves last week raised fears that the surfeit of US government debt is starting to saturate bond markets. Items from The Economatrix: Treasuries Find Greenspan’s Canary Fainting in Mine MGM Bankruptcy Likely World Stocks Up on China Earnings, Greece Plan Not Hiring (In California) Consumers Slowly Show Signs of Springing Back Benchmark Crude Holds …

Reader S.M. pointed us to this article in The Washington Times: CBO report: Debt will rise to 90% of GDP From Zero Hedge: Higher Yields, Lower Equities? Another piece from Zero Hedge that several readers recommended: It’s Official – America Now Enforces Capital Controls Damon sent this: S&P Market Indicator Downgrades US Sovereign Debt to aa+ Travis recommended this alarming piece by Dan Denninger: On Deficits And Debt-Financed Government From George Gordon (“G.G.”) British credit rating ‘could be lowered’ The Adultsitter suggested this blog piece: FDIC Playing With Fire by Soliciting State Pension Money to Buy Toxic Assets Items from …

Frequent contributor Damon S. sent this: The Big Short: Inside the Doomsday Machine by Michael Lewis Items from The Economatrix: Rates Rise After Weak Auction Demand on Seven-Year Notes Half of US Loan Modifications Default Again Bernanke: US Economy Not Ready to Fly Solo Yet Sun Belt Loses its Shine

“H2O” in California sent this news item about Kern County, California: Kern unemployment continues to climb: 17.4% in February. H2O’s comment: “The bulk of Kern’s population is located in the Southern San Joaquin Valley, where agriculture and oil are the lynchpins of the local economy. With the legislative/judicial droughts being imposed on California, local farmers have been allocated just 15% of their annual contractual water supplies. This means that they cannot secure the crop loans necessary to grow the crops to feed the nation for the fourth year in a row. Food shortages are right around the corner, I fear.” …