Category: Economics & Investing

C.M. suggested this alarming opinion piece by Niall Ferguson that ran in the Los Angeles Times: America, the fragile empire–Here today, gone tomorrow — could the United States fall that fast? Items from The Economatrix: Ambrose Evans-Pritchard: Don’t Go Wobbly on Us Now, Ben Bernanke The Sovereigns and the Serfs Peter Schiff: Don’t Bet on a Recovery The Financial Battle For The Middle Class: Underemployment At 20%; 38 Million Americans On Food Stamps; Little Hiring; Can It Be A Recovery With No Jobs For This Long?

Reader John S. spotted this: California is a greater risk than Greece, warns JP Morgan chief I found an article linked in a piece by Dr. Gary North that illustrates just how deep a hole the Federal government is digging: $126.9 Billion and Counting. The charts in Nathan’s recent blog piece tell a thousand words. This is no ordinary recession. We’ve fallen off a cliff. George Gordon spotted this: Gold Hits Record High In Euros, Pound. Items from The Economatrix: Ron Paul Discusses Coming US Collapse Jim Rogers: Pound Could Collapse Within Weeks Housing Recovery Looking Shakier than Expected Consumer …

GG flagged this: WTO says global trade shrank 12 percent in 2009, biggest collapse since Second World War From Brian B.: Head of IMF Proposes New Reserve Currency – ABC News Another from GG: American reliance on government at all-time high Items from The Economatrix: Manufacturing Grows in February, Jobs Gauge Rises January Spending Increases But Income Growth Slows January Construction Spending Slides IMF Says New Reserve Currency to Replace Dollar is Possible Mish Shedlock: Short-Selling Restrictions “A Great Indicator of Imminent Market Crashes” Temporary Hiring: A Different Kind of Signal Jobless Benefits Begin Ending on Sunday

JDD sent this: Greenspan: Worst Financial Crisis Ever, Including the Great Depression. Blunt words: Bernanke delivers warning on U.S. debt. (Thanks to A. H. in Tucson for the link.) GG suggested this, over at Seeking Alpha: Something Very Strange Is Happening With Treasuries Kevin S. sent us two interesting map links: Bank Failure Map and Interactive Job Loss Map

Jeff Recommended an article over at George Ure’s site on the plight of a surveyor, which is a macrocosm of the national economy: And the Bottom Line Is? Don’t like the record number of foreclosures? Well, ban them! See: Obama May Prohibit Home-Loan Foreclosures Without HAMP Review This comes from Pravda, so I’m naturally dubious: China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction, Finmarket news agency said. (Thanks to J.D.D. for sending the link.) Items from The Economatrix: Sultans of Swap: Explaining $605 Trillion of Derivatives Common Sense …

Damon alerted us to this: Concerns grow over China’s sale of US bonds; Evidence is mounting that Chinese sales of US Treasury bonds over recent months are intended as a warning shot to Washington over escalating political disputes rather than being part of a routine portfolio shift as thought at first. Kevin S. sent us this from John Galt’s blog: Looking at some deadly charts. Another link from Kevin S. is for a video posted at YouTube: Gerald Celente Predictions Jim D. forwarded an interesting article about the financial crisis in Greece and how it may be a window into …

The various state budget crises are increasing in severity. Here is the news from California, and Illinois. (Thanks to GG, for both links.) Reader “Burrito Boy” forwarded this warning of darker days in Europe: Greece leads Europe’s winter of discontent Michael H. suggested a piece by Professor Bainbridge: What, Me Worry? Credit Default Swaps on US Treasuries. Oh, don’t miss his advice at the end of the article: “Although sovereign defaults are hardly unknown, things would have to get incredibly bad for the US to default on Treasuries. And if they got that bad, you’d probably have been better off …

El Jefe Jeff E. sent this one: U.S. New-Home Sales Drop 11.2%. “Unexpectedly”??? What planet are they from? I suspect that we’ll see a further drop, seasonally adjusted this summer, as mortgage credit tightens and as another wave of foreclosures further flood the housing market. GG mentioned an article in an Indian newspaper, wherein Jim Rogers says that the UK will lose its AAA bond rating this year, and that inflation and a currency crisis are inevitable. I noticed that The Total Investor Blog has had some great posts, recently. Items from The Economatrix: Bernanke: Record-low Rates Still Needed Stocks …

GG sent this: Buy farmland and gold,’ advises Dr Doom Also from GG: Prices are rising fast, even if the CPI isn’t Corey was the first of several readers to forward this: Banks at risk of going bust tops 700. Gee, with 7,000 banks in the country, that is a 1 in 10 chance that your bank is on the list. Those are practically Russian Roulette odds. From Flavio: Harvard’s Rogoff Sees Sovereign Defaults, ‘Painful’ Austerity Items from The Economatrix: Real, Uglier American Unemployment Death By Trillions of Dollars (The Mogambo Guru) US State Pension Funds Have $1 Trillion Shortfall …

Hollis wrote to mention that “John Galt” of the Shenandoah blog has completed his “The Day The Dollar Died” web novella. Adrian sent us this: Argentina Seizes Central Bank. GG flagged this one from Time magazine: How Big is the Threat from Option ARMs? Items from The Economatrix: FICO and the Credit Card Financial Prison: How a Three-Digit Credit Score Reflects Consumerism and Not Financial Independence Boeing Sends More than 1,000 Layoff Notices Citigroup Warns Customers it May Refuse to Allow Withdrawals Fastest Shrinking Restaurant Chains Stocks Waver in Early Trading on Earnings, M&A Poll: Economists See “Healthy” Expansion Underway. …

SurvivalBlog’s Editor At Large Michael Z. Williamson sent us this sign of the times: Frustrated Owner Bulldozes Home Ahead of Foreclosure. Robert H. and A.P. both sent us this link: South Carolina Lawmaker Seeks to Ban Federal Currency Reader H.M. e-mailed me to mention that he greatly enjoyed a recent radio interview with Jim Sinclair. Adrian recommended this commentary by John Rutledge: Banana Republics Need Compliant Central Banks. Here is an excerpt: “Wait a minute. Huge increase in government spending. Fast-rising debt. Tax the rich. Appoint political advisors to run the central bank. That’s us! “ Items from The Economatrix: …

GG sent this: Federal deficit at $430.69 billion through January GG also sent us the link to some commentary by Josh Lipton: What to expect from the commercial real estate crisis Courtesy of SurvivalBlog reader LT: Greece loses EU voting power in blow to sovereignty The Friday Follies continue: Four more US banks are closed. Items from The Economatrix: Premiums Jump 14% on Private Medicare Plans Asian Markets Drop On Surprise Fed Rate Hike “Crisis of Confidence”: Risks of US Defaults are Very Real Credit Markets Flash Hottest Warning Signal Since Crisis

SurvivalBlog’s “George Gordon” (GG) suggested this article: Five Million Workers to Exhaust Unemployment Benefits by June. Also from GG comes the link to this Seeking Alpha piece: The Municipal Bond Crisis Is About to Begin Yishai sent us a link by way of Glenn Reynolds (at Instapundit): International Monetary Fund to sell another 191 tons of gold. This is panic-driven market manipulation, folks! Items from The Economatrix: Low Inflation Gives Fed Room to Keep Rates Down Fewer People Falling Behind in the Home Loans Stocks Edge Higher as Fed Eases Bank Supports Oil Prices Up 12% in Two Weeks

JWR, I did some research after reading the recent “Making Change in a New Precious Metals Economy” article. The following will make it easier to determine the metal value of coins. Thank you for your great blog. Ounces of silver in pre-1965 coins: Silver bullion coin = 1 ounce Pre-1965 silver dollar = .77344 (90% silver, 10% copper) Pre-1965 silver half dollar = 0.36169 (90% silver, 10% copper) 1965-69 silver half dollar = 0.1479 (40% silver) Pre-1965 silver quarter = .18084 (90% silver, 10% copper) Pre-1965 silver dime = 0.0715 (90% silver, 10% copper) There is no silver in most …

Stock Market Analyst and hedge Fund Manager Barton Biggs: Stock A Safe Haven With Food And Firearms To Protect Against Doomsday Pillagers Here comes inflation! Reader Justin B. pointed us to this: January wholesale prices jump 1.4 percent. Justin notes: “That equates to a 16.8% annual wholesale price inflation rate!” And now, news that the ratcheting-up has begun: Fed bumps up rate banks pay for emergency loans. Greg C. sent us this: National Debt, Budget Deficit Scary Forecast for Taxpayers: Obama to Sign Fiscal Reform, Economists Predict Cutbacks, Tax Increases El Jefe Jeff E. forwarded this little red flag news …