Category: Economics & Investing

Raymond sent this New York Times piece: Inside The Global Frenzy For Gold Several readers sent this: Gold price hits record high as dollar wanes. JWR’s advice: Wait until the next profit-taking dip in precious metals, but then invest in silver, not gold. (I anticipate that silver may dip to as low as $12 per ounce, a proportionately much deeper drop, than gold. Watch the silver-to-gold price ratio closely! In the long term, the value of silver will gain versus gold, since silver is being consumed–and not reclaimed–from industrial use. (Nearly all gold is reclaimed, but an incredible amount of …

Reader Chad S. sent this: No risk of hyperinflation, says Bernanke. (I feel so much safer now, knowing that he’s grounding the helicopters.) Also from Chad: The Truth about Hyperinflation and Price Controls. Items from The Economatrix: Ahead of the Bell: Consumer Credit Mortgage Rate Falls Below 5% GM to Axe 10,000 in Germany Analysis: 10% Jobless is Obama’s New World. Sadly, 18-22% is more realistic. See the data at ShadowStats.com. Unemployment Rate Rises Above 10%. “The 10.2 percent unemployment rate does not include people without jobs who have stopped looking for work or those who have settled for part-time …

KT sent the link to an absolutely hilarious British music video parody on YouTube: Bohemian Bankruptcy (Warning: There are a couple of crude moments, so this is not for the kids!) Reader Tom. L. sent this: London Officially Dethrones New York as World’s Financial Capital Pat G. flagged this: Big California Bank Fails, Has Two Chinese Branches (Five more US bank failures were announced Friday) British Airways Makes Record Loss, Cutting 3,000 Jobs. (Thanks to Tom in Essex for the link.) Items from The Economatrix: Commentary from Doug Casey: Why Gold Has a Long Way to Go Clunker Data Shows …

Alex C. sent us this: Gold Jumps to Record Above $1,100 On U.S. Interest-Rate Outlook Get Ready for 14 Percent Unemployment. (Thanks to Bobbi-Sue for the link.) Items from The Economatrix: Gold Jumps to Record Above $1,100 On U.S. Interest-Rate Outlook Productivity Surge Signals Job Growth to Follow Productivity Gains May Be Bad News for Job Seekers Stocks Jump as Jobs, Productivity Data Improves Mood October Sales Offer Relief to Merchants Congress Set to Extend Homebuyer Tax Credit Initial Jobless Claims Fall More than Expected Jobless Rate Surpasses 10%, First Since 1983 Wholesale Inventories Fall, Sales Grow in September

Regular contributor GG flagged this piece from Zero Hedge: Fannie Mae Seriously Delinquent Rate Hockeysticks to 4.45% From 1.57% In Prior Year M.M. in Utah suggested this piece by Eric Sprott and David Franklin in Markets at a Glance: Dead Government Walking Karen H. sent this: Profit ‘Not Satanic,” Barclays Says Also from Karen H.: ADP says U.S. Companies Cut an Estimated 203,000 Jobs in October Items from The Economatrix: Gold Extends Record High on India Purchase US Service Industry Expands Less than Forecast Rogers Says Roubini is Wrong US Home Price Slide to Continue to Mid-2010 [JWR’s Comment: Gee, …

SurvivalBlog’s Editor at Large Michael Z. Williamson pointed us to some commentary by Peggy Noonan in The Wall Street Journal that sheds some light on attitudes about the current recession: We’re Governed by Callous Children. GG flagged this: Junk bond revival stokes credit bubble fears GG also sent us this troubling piece, from England: More quantitative easing is on the way – and that’s a good thing. The UK government considers debt monetization a good thing? Watch out! Items from The Economatrix: Oil Hovers Near $78 on Positive US Economic News World Markets Fall as US Recovery Doubts Linger Three …

SurvivalBlog’s Editor at Large Michael Z. Williamson sent this: Number of Utah jobs created by federal stimulus ‘inflated’ GG was the first of several readers to mention a recent piece by economist Nouriel Roubini: Mother of all carry trades faces an inevitable bust Damon S. sent us this bit of gloomage: Small-Business Bankruptcy Filings Up 44% Year-over-year, Equifax Data Shows Items from The Economatrix: US Inflation to Appear Next in Food and Agriculture. Here is a quote from the article: “While most mainstream economists such as Nouriel Roubini are warning of deflationary threats to the U.S. economy, it is our …

HPD sent us this piece by Mish Shedlock: A Remarkable Comparison: Affordable Student Loans vs. Affordable Housing Mr. Smith recommended this BBC audio clip: Fed Advisor Warns of the Next Financial Crisis: Mass Inflation Chad S. flagged this: Geithner Says Commercial Real Estate Woes Won’t Spark Crisis GG sent this: CIT Board Approves Chapter 11 Filing; Government Infusion of $2.3 Billion at Risk Items from The Economatrix: The Next Currency to Crash: The Japanese Yen Think Tank: Graduate Unemployment to Soar China Warns of World Slump if Stimulus Withdrawn Stiglitz Says US Recession “Nowhere Near” End After GDP Jump US …

Jeff E. suggested this: Wilbur Ross Sees ‘Huge’ Commercial Real Estate Crash “FarmerGreen” mentioned: Harvard’s Bet on Interest Rate Rise Cost $500 Million to Exit. Even the best and brightest at Harvard lost a billion to get out of a derivatives contract that went south. Bruiser spotted this: California to Begin Holding More of Your Paycheck. Bruiser’s comment: “The lesson here is that if one needs a loan, just go out and take it from everyone who has a job. Like Commifornia is doing.” [JWR Adds: My favorite quote from the article: “The state is closing part of this year’s …

Chris in West Virginia was the first of several readers that mentioned Glenn Beck’s recent explanation of inflation, interest rates, and the history of destroyed currencies. It was a basic primer for the sheeple. I just wish he had taken a couple of minutes to explain the money multiplier effect of fractional reserve banking. Ehh! Probably too complicated for many television viewers to grasp. The latest from Dr. Housing Bubble: Option ARMs Enter the Eye of the Hurricane: The $189 Billion Recast Problem Targeted Directly at the California Housing Market. Of $189 Billion in Securitized Option ARMs $109 Billion in …

The credit derivatives plot thickens: New York Fed’s Secret Choice to Pay for Swaps Hits Taxpayers. (Thanks to David V. for the link.) Russia delays sale of 50 tons of gold. (A hat tip to Trey for the link, by way of MineWeb.) GG sent this: Stimulus jobs overstated by thousands SurvivalBlog’s Editor at Large Michael Z. Williamson spotted this New York Times piece: Hard Work, No Pay. It includes this memorable quote: “I am not unemployable. I have a master’s of fine arts and spent two years in the Peace Corps.” Mike’s comment: “Er…I thought that was the definition …

Tom B. and “Word” both sent us this: Tax refugees staging escape from New York. Tom B. described as “voting with their feet.” Julius suggested an amazing Summary of US Foreclosure Activity. Wow! One in every 23 homes in Nevada is in foreclosure! An interesting piece over at Housing Storm: Contradictions and Symptoms of the Great Depression Items from The Economatrix: GM Seen Posting Sales Again Stocks Turn Lower as New Home Sales Fall New Home Sales Fall a Surprising 3.6% Treasury, GMAC in Talks for Third Round of Aid Durable Goods Orders Rise 1% in September (Whoopee! Release the …