Category: Economics & Investing

Economics and Investing:

Monty recommended this piece over at Seeking Alpha by J.S. Kim: The Coming Consequences of Banking Fraud More about insider selling, courtesy of Pete S.: Insiders sell like there’s no tomorrow; Corporate officers and directors were buying stock when the market hit bottom. What does it say that they’re selling now? GG sent this: U.S. Foreclosure Filings Top 300,000 for Sixth Straight Month Items from The Economatrix: Analyst: It’s Too Late to Save Sears The Ripple Effect: What One Layoff Means for a Whole Town Wholesale Inventories Drop in July; Sales Grow UK: Higher Oil Prices Feed Inflation Fear Cash …


Economics and Investing:

“The Other Jim R.” was the first of several readers that sent us this: Federal deficit hits $1.38 trillion through August. Mr. W. sent this: Three more down: 2009 Bank failure tally hits 92 Items from The Economatrix: Treasury Sees Millions More Foreclosures Job Openings Down 50% From their Peak in 2007 Why $200 Per Barrel Oil is Just Around the Corner A Year After the Financial Crisis, a New World Order Emerges “System Risk Laundering” — Systemic Root Causes, Part II Forbes: The Dollar Collapses Gold Climbs to 18-Month High as Dollar Weakens US Growth to Slow After “Clunkers” …


Economics and Investing:

You might have noticed that gold set a record weekly closing price on Friday at $1,005 per ounce, and silver closed at a respectable $16.70. I expect some profit-taking in the next two weeks, so be ready to buy on this dip! From Jeff D.: Treasury sees millions more foreclosures Ben M. spotted this piece quoting Mr. Magoo Alan Greenspan. Market crisis ‘will happen again‘ Items from The Economatrix: Government Paid Dealers $1.2 Billion for “Clunkers” NYC’s Tavern on the Green Files for Chapter 11 Bankruptcy Trade, Jobless Claims Figures Show Recession Fading Money Market Fund Guarantee Program to End …


One Woman’s View of Budget Preparedness, by Lisa L.

I wanted to write something for the contest for other ladies with children were in the same situation with wanting to be more prepared but not having the means to do so like the books recommend. I’ve had my frustrations but I’ve learned and bought gradually and wanted to share. 🙂 It always upsets me when I hear in the media or from people their point of view that people are helpless due to their income level. This is what I’ve learned so far, how to cook with wheat, stockpiling shampoo for very little and ways to acquire some supplies …


Economics and Investing:

This piece, sent to us by Damon S., should come as no surprise to SurvivalBlog readers: The Dollar Collapses; Commodities, stocks and foreign currencies all rise as investors sell dollars. As I’ve stated before, the magic number to watch for on the US Dollar Index (USDI) is 72. The territory south of 72 is terra incognita. “There Be Dragons.” Phil G. sent this: Swiss topple U.S. as most competitive economy U.S. ‘unlikely’ to recoup auto outlay, panel finds Lack health coverage? You may pay; “Americans would be fined up to $3,800 for failing to buy health insurance under a plan …


Letter Re: Living in the Time After TEOTWAWKI

Dear Mr. Rawles, I think there is a blind spot in a lot of preparedness/survivalist writing that I would like to address. There are a number of sites which do a good to excellent job of getting the word out about the nuts-and-bolts of getting prepared to allow a family to get through a short term emergency, and there are sites which encourages us to get a retreat in farm country. However, I have not seen anyone talk about how we will boot strap ourselves to back towards some sort of village life and civil society[, in the event of …


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 …