Category: Economics & Investing

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 …

Reader B.H. recommended this primer, published by a precious metals dealer: Buying silver, buying silver bullion for survival purposes. JWR Adds: I concur with nearly all of what they recommended on “survival”/barter coins. However, I do see the utility of buying some 1/2-ounce silver bullion coins. I also recommend buying some of the new pre-scored “Stagecoach” one-ounce silver bars a and rounds that can easily be chiseled into 1/4-ounce “bits”, minted by Northwest Territorial Mint. Also, readers outside of the U.S. should concentrate on buying whichever bullion coins are the most recognizable and trusted in your respective countries. In Australia, …

So, given that the USA Federal Reserve currency, the US dollar, is going down the tubes, something else will replace it. There will undoubtedly be attempts by various governments to reinstate some version of fiat money, but people are going to see through that, and will not accept it, since fiat money is, at it’s core, an undeclared, and essentially unlimited, tax on those who produce. Ultimately, people will probably return to a means of exchange with more than 4,000 years of history;  Gold and silver.  Here in the USA, in the aftermath of the coming economic collapse, there will …

Reader K.T. wrote me: You won’t believe the sweetheart deal that the Indymac boys were given by the FDIC. Reader JDD sent us this: Economist: China will soon revalue the yuan; Nation must slow economy down, deal with inflation threat, analyst says. Also from JDD come this alarming Zero Hedge article link: Move Over China: Beijing Sells Whopping $34.2 Billion Treasuries In December As Japan Becomes Largest Official Holder of US Debt Items from The Economatrix: Stocks Gain on Earnings, Deals, and Hope For Greece Foreigners Cut Treasury Stakes; Rates Could Rise Gasoline Price Hits New Low for 2010 Are …

Russ D. spotted this: China: the world’s next great economic crash; Like Dubai at the beginning of last year, China is now reaching the peak of a bubble. From Jonathan C.: Euro Area Headed for Breakup, SocGen’s Edwards Says Steven H. suggested this iStockAnalyst article: Forget Greece, The US Almost Had a Failed Treasury Auction Reader Sue C. forwarded this: Strong dollar hurts exports Survivalblog’s George Gordon notes that even Esquire magazine is trumpeting: “Inflation is coming, buy gold!” Items from The Economatrix: Economic Warnings from an Elderly Third Grader (The Mogambo Guru) The Day The Dollar Died (Part 17): …

Marc Faber Predicts: Debt Interest Will Lead to Default, Then War. Thanks to Brett G. for the link. From GG: The Debt Contretemps Everybody’s Ignoring Several readers mentioned this: Collapse of the euro is ‘inevitable’: Bailing out the Greek economy futile, says French banking chief. In the short term this could push the US Dollar up, and gold down. The soon-to-be-released Generation Zero documentary looks like is destined to be a success. I noticed that Andrew Sullivan of The Daily Dish is giving it some coverage. From J.T.: Greek FinMin unveils tax reform, wage policy GG sent a link to …

From GG: California Teachers Pension Fund $42.6 Billion Short Truckman sent this; Commercial Real Estate’s Coming $1.4 Trillion Crisis From JDD: Report: 1 in 5 U.S. homeowners underwater Items from The Economatrix: Inflation: Ignoring Doesn’t Make It Go Away (The Mogambo Guru) Chapter XVI: When Shopping Is A Pleasure (The latest in The Day The Dollar Died series) Globalization is Killing the Globe: Return to Local Economies FEAR Davos 2010, Into the Bomb Shelter Why Silver Price Will Boom to $50/Oz. Bernanke Says Discount Rate May Rise “Before Long” Trade Gap Unexpectedly Rises on Imports How A New Jobless Era …

Hugh D. zeroed in on this Telegraph article: China orders retreat from risky assets. The article begins: “China has ordered managers of its vast currency reserves to withdraw from risky dollar assets and retreat to core debt guaranteed by the US government, a clear sign that Beijing is battening down the hatches for fresh trouble on global markets.” Randy F. sent this article: Monopoly “Money “ –which notes that it is currently illegal to melt pennies or nickels, and the plans for further debasement of our currency. Reader JTH found this: Bailout panel cites commercial real estate danger UK central …

From GG: How Goldman Sachs Helped Greece to Mask its True Debt Tom W. wrote to mention that he liked a Real Clear Politics piece titled Big Government’s Big Shortfall. Items from The Economatrix: Stocks Up After EU Pledges Support for Greece Moral Support, But No Money, EU Says to Greece Oil Up for Fourth Day on Strong International Demand Outlook The Fed’s “Exit Plan” is Just Another Secret Gift to Wall Street Jason Kelly Reviews the US and European Economies Banking and Housing Payments Devoured Middle Class Income Stocks Fall as Bernanke Points to End of Stimulus Trade Deficit …

A link sent by SurvivalBlog’s Poet Laureate George Gordon (“GG”): Why Sovereign Debt Pain Has Only Just Started Also from GG come this big red flag article: Greece ‘Dress Rehearsal’ for U.S. and U.K., Deutsche Bank Says Sent by Trent: Britain faces ‘oil crunch’ within five years, Richard Branson warns Forget The Mortgage, I’m Paying My Credit Card First! (Thanks to Coyote in northern Michigan, for the link.) Items from The Economatrix: Greece’s Financial Crisis Puts Future of Euro in Question Super-wealthy Investors Move Billions Out of Greece World Bankers Meet in Sydney as Recovery Fears Intensify Bank Failures to …

CMBS Loan Liquidations Hit Record $585M in December. (A hat tip to Flavio for the linkio.) Jeff P. suggested this Business Insider piece by Michael Snyder: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not Going To Recover And from Jeff B., news of further debasement of US coinage: Obama’s Proposed 2011 Budget Allows Coin Composition Changes. Do you have your stash of nickels yet? Items from The Economatrix: US Mortgage Sector Braced for End of Fed Help Initial Jobless Claims Rise Unexpectedly; Stock Futures Down, Dollar Up Portugal Warned Near Political Crisis Over Debt EU Meets …

Mr. Rawles, I took your advice of socking away nickels to heart. I wanted to start off with an ammo can for each member of my family. I figured why not go to the local bank where my wife has banked since 1993? I went in, filled out the withdrawal slip for $178 (one ammo can) and requested the payout in nickels. The teller then said that if I withdrew $200 instead he can give me two boxes that came from the Fed. They gave me the nickels but told me that they really only give rolled coins to their …

Reader Dan D. recommended this piece by Simon Johnson: Europe Risks Another Global Depression Commentary from Bill Pesek: Biggest Bubble in History Is Growing Every Day. He’s anticipating big time currency inflation in east Asia. (Thanks to Auby for the link.) Mike H. recommend this essay by Doug McIntosh, posted over at Steve Quayle’s site: When the Gimmicks Fail Items from The Economatrix: Shell Downplays Prospect of Quick Recovery in Oil Demand Despite Profits Rebound The Bernanke Reappointment: Be Afraid, Be Very Afraid Planned Layoffs Rise for First Time Since July Economic Report The Devaluation and Fight for Survival of …