Category: Economics & Investing

GG spotted this article: The Real Crisis Is Food: Beginning of the Bull for Agriculture Udo sent this: U.S. Home Prices Drop [Another] 6.8 Percent in April as Foreclosures Rise. JWR’s Comment: We are nowhere near the bottom! I don’t expect that for another four to seven years. With the exception of retreat properties, it is best to stay on the sidelines and rent, while you are waiting for the market to bottom. Then you can buy for perhaps 25 cents on the dollar. Reader HPD liked this piece by Mish Shedlock: US Approves IMF Gold Sales; What Does It …

From The Daily Bell: David Morgan explains why silver remains the ‘people’s metal’ and why it may be a better investment than gold Karen H. sent this: Numbers on Welfare See Sharp Increase DD sent a piece about British ex-pats: Global downturn dashes retirees’ dreams SurvivalBlog’s Editor at Large Michael Z. Williamson sent a link to this lengthy piece: Still Researching Corruption at The Treasury Items from The Economatrix: US Says Bonds Seized In Italy Are “Clearly Fake” Bearer Bonds Saga: Resolution? Employers Are Undermining The Economic Stimulus Plan “Reports are starting to appear suggesting that laid-off or underemployed Americans, …

Harry Schultz warns Bob Chapman’s newsletter readers of a possible upcoming “bank holiday.” From KAF: A Fake Financial Fix Glenn M. recommended this article and the accompanying video clip: Thirty Years of Inflation Coming, But “Deflation Scare” Not Over Yet, Cycle Maven Says Karen H. sent this: Derivatives Get Second Look From U.S. Congress That Didn’t Act. I warned SurvivalBlog readers almost four years ago about the threat posed by derivatives.(Please take tee time to re-read that article.) The frightening thing is that we have not yet seen the derivatives bubble fully implode–just one sector.. Also from Karen: States Turning …

KAF found this one: Standard & Poor’s cuts ratings on 18 banks Also from KAF comes this item from Foreign Policy: What Does the End of the Recession Look Like? Another week, another three banks bite the dust: North Carolina, Georgia, Kansas Bank Seizures Cost $363 Million. (Thanks to Karen H. for the link.) Dr. Gary North on Inflation Versus Deflation. (Thanks to OSOM for the link.) Another from Karen H.: Port of Los Angeles Inbound Shipping Container Traffic Down 18% Krys in Idaho sent this: Is this the death of the dollar?

Marc Faber: 10-20% Inflation Coming to US (Thanks to Mark H. for the link.) HPD sent us a link to Mish Shedlock’s commentary: Flow of Funds Report Offers Hard Evidence of Deflation Hawaiian K. spotted this in an Australian newspaper web site: Cash to become extinct as chips take off Items from The Economatrix: The Cumulative Impact of Three Rogue Waves Why Deflation, Not Inflation, is the Order of the Day US Banks Operating Without Reserve Requirement China’s Got a New Currency…And it Sure AIN’T the Dollar “China has already begun moving into a new currency, one that is neither …

KAF sent this from Newsweek: Making Sense of Stimulus Spending; How accurate is Obama’s claim of 150,000 jobs “saved or created”? Thanks to Douglas S. for sending the link to a lengthy speech by Dimitri Orlov: Definancialisation, Deglobalisation, Relocalisation. It is was a good and well-intentioned speech, overall, but there were elements that showed that Orlov still has a bit of residual Soviet Era collectivism that he needs to work out of his psyche. Oh, and by the way, I’m not giving up my well-provisioned bunker in an undisclosed location. (The Memsahib still jokes about doing a needlepoint that reads …

James Wesley, I have just recently came across your blog. Thank you. I also just started saving nickels. I am a bit confused. Do you save all nickels or just pre-1965? I just finished Patriots this morning. Are the silver pieces used for barter in your novel nickels? Thanks, – Brent H. JWR Replies: You aren’t the only one that is confused about nickels, since outwardly, they appear as if they might be made of silver. To clarify: In general, it is just pre-1965 dimes, quarters, half dollar and dollars are 90% silver. The only nickels with silver content were …

Readers Greg C. and FJR both sent us this “must read” piece by Chris Hedges: The American Empire is Bankrupt KAF sent this key indicator of some incipient unraveling: Standard & Poor’s cuts ratings on 18 banks From frequent content contributor GG: China sells US bonds to ‘show concern’ Also from GG: Russia’s industrial output drops massive 17 per cent in May despite government reassurances Items from The Economatrix: Californian Hard Times Driving People Back to the “Dust Bowl” US Mortgage Applications Plunge to Near Seven-Month Low That Worrying Wall of Debt “…the leveraged loan market is fixated on one …

Obama unveils broad financial oversight plan; blames current financial crisis on ‘a culture of irresponsibility’. New powers for the Federal Reserve? Wait a minute! Weren’t they the private banking cartel that got us into this mess, with artificially-low interest rates? AIG Refuses Crash Claims “That division [airline insurance] didn’t get any bailout money.” Black Swan Trader Bets Reputation on Inflation This one is a “must see”: Peter Schiff on The Daily Show (Thanks to GG for the link.) GG also sent this from Barron’s: Will Bad News Be Good for the Dollar Again? Foreigners exited U.S. assets in April as …

F.G. sent this: Restaurants on the Ropes Thanks to for this link: Airlines adjust as demand slides. “Nevertheless, IATA expects passenger yields to fall by 7% this year and cargo yields to decline 11%” The manufactures also expect fewer orders for planes. Also from F.G. comes this Wall Street Journal piece: Retailers Flee a Dying Detroit KAF flagged this: U.S. likely to lose AAA rating: Prechter Items from The Economatrix: German Newspaper Article Thinks [Ponte Chiaso] Bonds May Be Real. Timeline of Events and Updates as they Happen Weisenthal Talks the $134.5 Billion Bond Seizure on Glenn Beck Treasury: Can’t …

Don W. sent this: US cities may have to be bulldozed in order to survive. Bulldozing whole neighborhoods? This sounds like a land developer’s dream come true. Talk about “stimulating demand” for new housing… Maybe we ought to crush half the cars in the country while we are at it, just to make sure that the Detroit auto makers will get plenty of business. Oh, but wait! SurvivalBlog’s Editor at Large Michael Z. Williamson sent this: House ‘cash for clunkers’ plan to boost car sales. Mike’s comment: ” They really are insane. The sheer conceit that makes them believe they …