Category: Economics & Investing

Reader O.J.W. spotted this: Why the price of gold is rising Ryan mentioned this: Report: 10 states face looming budget disasters Jason H. and “Oxy” were the first of dozen readers to mention this article: Peak Gold? Barrick shuts hedge book as world gold supply runs out Items from The Economatrix: Fed Officials Warn Weak Recovery Won’t Spur Jobs Why Gold is Shining Brighter Gold Bars Selling Like Hotcakes at Harrod’s Gold Hits New Record, Now Eyes US $1200 Jim Willie: Ultimate Conditions for Recovery Failure Written into “Too Big” Policy Job Openings Remain Close to Record Lows FDIC Boss: …

FDIC Disowns Geithner Embarrassment. (Thanks to “Word” for the link.) Morris suggested an editorial about the coming collapse in commercial real estate by Doug Hornig of Casey Research: De Nile is not just a river in Egypt G.S. liked this: The gun that beat inflation; Commentary: How the Colt Peacemaker outshone gold. [JWR Adds: And you can’t shoot a burglar with a Krugerrand. Well, maybe you could with a Wrist Rocket, but that would take some explaining, in court.] Items from The Economatrix: Fed: GMAC to Receive More Bailout Money Sprint Plans to Cut Up to 2,500 Jobs Economists Seek …

Flaw in US Data Overstates Growth, Productivity. (Thanks to Garth for the link.) Jonathan H. sent this from The Wall Street Journal: Three Decades of Subsidized Risk K.T. sent this: CNBC – Dollar Will be Utterly Destroyed, Global Currency, New World Order Bobbie-Sue spotted this interview: Peter Schiff: The Government Chose Wrong. Here comes inflation! Items from The Economatrix: Dollar Down Again as G-20 Backs On-Going Stimulus Stock Volatility Sign of Aging Bull? UK: Zombies Lurking On Every High Street Credit Card Firms Hurry to Raise Rates Now Ex-CitiGroup Boss Becomes A Glass-Steagall Convert BoE Says Financiers are Fueling an …

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 …