Category: Economics & Investing

Letter Re: A Practical Use for Post-1982 US Zinc Pennies

Dear Mr. Rawles, I was reading the post on Survivalblog regarding “A Practical Use for Post-1982 U.S. Zinc Pennies.” You may want to remind your readers that in December 2006, the U.S. Mint announced a regulation making it illegal to melt cents and nickels. While this regulation was obviously aimed at large-scale melters and not us “little guys,” the fact remains that the Mint considers the melting of these small-denomination coins illegal, and punishable by up to a $10,000 fine or up to five years in prison. Of course, the feds won’t necessarily know if you or I are melting …


Economics and Investing:

The latest weekly commentary and podcast from Don McAlvany: ECOSPASM: Inflation, Deflation, & Stagflation in One From DD: Is Buffett worried about stocks? Regular contributor Karen H. sent these news bits: Currency Crash Possible Wealthy Families Face Bankruptcy on Real Estate Crash Dollar Falls to Lowest in Almost Year on Borrowing Costs Items from The Economatrix: Lew Rockwell: The Great Fakeroo Recovery Backlash Against Banks Growing over Mortgage Modifications Study: 2 Out of 5 Working-Age Californians Jobless Post Office Closures Threats Adds Woes to Property Market Reality Excluded (The Mogambo Guru) Dollar’s Fate Written In History


Letter Re: Bank Walkaways–Banks Intentionally Not Fully Foreclosing?

James Wesley, I just read an ad on Craigslist explaining some sad stories for individuals on “Bank walk aways” . See BankWalkaways.com for more. It appears that [some] banks are intentionally not auctioning off properties foreclosed on and leaving the titles (… legal responsibility, liabilities, etc.) in the original record holder’s name. Down the road these vacant properties are vandalized, looted, burned etc., then the city comes a callin’ for the “homeowner” to fund the repairs / demolition. This is outrageous if this is true! Thanks are hardly enough for the wake up call you’ve given me through your book …


Economics and Investing:

U.S. Government to Loan Brazil’s Petrobras $10 Billion. This supercedes the old offer of $2 billion. Oh, but wait a minute! So if the BHO administration favors offshore drilling in US coastal waters, then why is this money going to Petrobras-Brazil instead of to US companies? Sue C. spotted this one: Dollar Falls to Lowest Versus Euro in 2009 as Stocks Rally And from A.C.: Schiff: Rising Gold Signals Inflation Items from The Economatrix: Gary North: Deflation, Inflation, Stagflation, Mass Inflation, Hyperinflation: Which One Will Get Us First? Obama Says US Still Faces Complex Economic Crisis Federal Reserve Saved Us …


Economics and Investing:

Courtesy of The Other Jim R.: Dollar Will Weaken, Currency Crash Possible, Roubini Says From FG: More US wealthy opt to surrender their citizenship Ambrose Evans-Pritchard asks: Does the world have the courage to deal with its debts? “There are three ways out of our mess. We can pursue 1930s liquidation that purges debt through mass default. Such Calvinist destruction cannot be imposed on a modern democracy. We can devalue debt by deliberate inflation. This will backfire as bond vigilantes boycott government debt – unless rigged by capital controls or “administrative measures”. You see where this leads. Or we can …


Economics and Investing:

Sluggish growth in france leading to big trouble. (Thanks to DD for the link.) Larry T. sent this: Why Default on U.S. Treasuries is Likely, by Jeffrey Rogers Hummel. “Buried within the October 3, 2008 bailout bill was a provision permitting the Fed to pay interest on bank reserves. Within days, the Fed implemented this new power, essentially converting bank reserves into more government debt. Now, any seigniorage that government gains from creating bank reserves will completely vanish or be greatly reduced.” Items from The Economatrix: Five Weeks on the Brink: Reliving the ’08 Meltdown Brown to G-20: Economy at …


Economics and Investing:

I found this linked over at TotalInvestor.com: Worst of slump yet to come, says economist; Ann Pettifor predicted a painful end to the good times. Now she says that only radical action can prevent further gloom. Her prediction was right, but it is sad to see that she has bought in to the notion that governments can “spend their way out” of the credit collapse. GG sent this: Students Borrow More Than Ever for College–25% Increase FG flagged this Wall Street Journal piece: The Coming Reset in State Government – Governor Mitch Daniel. The governor of Indiana explains why the …


Letter Re: Some Economic Indicators to Watch

James Wesley, I just had lunch today with a senior bank executive in Chicago. He confirmed much of what I have been seeing in the economy. After picking his brains, I have put together a few economic indicators to watch: – Christmas will be a financial disaster – people are reluctant to spend their cash. Weak sales will be a tipping point for many retailers – Commercial real estate is the next “shoe-to-drop” – Small businesses continue to struggle – their problems will broaden and deepen as credit is strangled – SBA loans are off-the-street, defaults may be as high …


Economics and Investing:

Items from KAF: Gold Increases 2.3% as Greenback Drops China Pushes Silver and Gold Investment to the Masses Hong Kong Recalls Gold Reserves, Touts High-Security Vault Retailers Report Sales Decline for August More Americans than Anticipated File Jobless Claims Sugar May Drop 24% as Demand Stalls, Supply Grows Edinburgh Hedge Fund Feel Madoff Effect as Clients Get Pickier HSBC Says Switzerland Luring More Rich Foreigners as Taxes Rise And from HH: The $531 Trillion Dollar Derivatives Time Bomb The Nightmare of Contemplating Global Derivatives Fed Secretive for Good Reason Investors Rush into Gold Like 1849 Items from The Economatrix: The …


Economics and Investing:

SEC’s Schapiro Calls Derivatives Data ‘Critical’ for Probe Jeff C. spotted this: IndyMac’s mortgage struggle. How does modifying a “liar loan” somehow magically make a semi-employed borrower credit worthy? From John in Ohio: Is America still depression-proof? Reader MSB mentioned: The Shell Game – How the Federal Reserve is Monetizing Debt Oldest Swiss Bank Tells Clients to Sell U.S. Assets or Leave (Thanks to DD for the link.) Exit strategy? Fed’s Plosser: U.S. rate increases could be rapid. (A tip of the hat to Brenda C. for the link.) JWR’s comment: This is starting to remind me of the policies …


Letter Re: A Practical Use for Post-1982 US Zinc Pennies

Sir: I just discovered your site this afternoon and look forward to perusing it in depth. I noted your response to the question about hoarding dimes and your reference to the metal content dollar value. Let me pass on a tip: hoard up a several pounds of pennies. Here’s why. As you know, pennies are roughly 97% zinc and 3% copper. To that mixture, one may add a few aluminum cans and minor amount of copper wire to bring the mix to 93% zinc, 3% copper, and 4% aluminum. This alloy melts at relatively low temperatures and is called “Zamak”. …


Economics and Investing:

This may be one of the most important pieces of economic news in many months, yet is did not receive much mainstream news coverage when the wire story was circulated yesterday: Beijing’s derivative default stance rattles market. This implications of state-owned Chinese industries being given carte blanche to nullify derivatives contracts are enormous. You’ll probably recall that I have been warning about derivatives counterparty risk for almost three years. And it was there that I specifically warned about the risk of “disappearing counterparties”. This new turn of events will likely shake the very foundations of the global derivatives markets. If …


Developing Our Family’s Survival Strategy, by FBP

We started prepping about 18 months ago. I have felt like a chicken with its head cut off, going wildly in all directions. I’ve learned a lot about a lot, some by research, but have learned most from doing. Being prior military (I served six years in the Army Captain, and as a civilian, I was a financial planner), I started identifying mission statements and initiating plans, backwards (aka backwards planning) in order to get them accomplished on time. The first mission: “How do we survive hyperinflation?” My readings led me to believe that the best protection is to plan …


Economics and Investing:

Brendon sent this: “Zombie suppliers” haunt manufacturing sector From H.H.: Italian banks may take ham and wine as collateral Cut my pay … please! As the number of layoffs mount, more workers are ready and willing to take significant pay cuts to find employment. (Thanks to Ben M. for the link.) From DD: Small retailers feel sharper pinch; Cuts in consumer spending hit mom-and-pop shops hard Reader KAF spotted this: As Banks Repay Bailout Money, U.S. Sees a Profit U.S. Stocks Fall After China Markets Trigger Global Sell-Off Damon flagged this: Daily Commodities Fundamentals: China Takes An Overnight Plunge, Oil …


Letter Re: Stockpiling Dimes?

Sir, I have a question what is the metal makeup of dimes [US 10-cent coins]. I am saving the nickels [US 5-cent coins, as suggested in SurvivalBlog, since 2007]. I have a small amount of dimes and was wondering if they are worth saving? – Curtis M. JWR Replies: Stockpiling dimes would not be wise. See the base metal value data at Coinflation,com. As of Saturday, August 29th, the base metal value of a post-1964 dime is $0.01704, (less than 2 cents) but the acquisition cost fro each coin is the face value of ten cents. Meanwhile, the base metal …