Category: Economics & Investing

Hungary’s Economy Minister warns of currency crisis, “social collapse” without deep reform GG sent this Los Angeles Times piece: From deflation fear to inflation panic, so soon? Items from The Economatrix: Exploding Debt Threatens America With no change in policy, US debt will equal US GDP in just five years. Coming Dollar Bust–All But A Few Have No Clue “The failure of the housing market is only 40% to 50% over. All this is happening as policymakers, Goldman Sachs, JP Morgan Chase, Citicorp, etc., and the rest of the elitists are shifting all the debt from the financial sector to …

D.S. suggested this Gerald Celente audio clip “When this Bubble blows – it’s over” Also from GG: U.S. Inflation to Approach Zimbabwe Level, Faber Says Yet another from GG: Roubini says U.S. economy may dip again next year Items from The Economatrix: About 12 percent of U.S. homeowners late paying or foreclosed Signs of More Trouble For Housing “Wall Street is so hungry for good news that stocks rallied at the barest hint of upbeat indicators several times this month.” The Greatest Swindle Ever Sold Insanity Gone Rampant (Mogambo Guru) Stocks Down Amid Worries About US Debt 1Q Home Prices …

Frequent content contributor GG sent this Los Angeles Times article: Early retirement claims increase dramatically Cities disincorporating? Towns Rethink Self-Reliance as Finances Worsen. (Thanks to GRK for the link.) I found this linked at The Drudge Report: IRS tax revenue falls along with taxpayers’ income Items from The Economatrix: Carmakers’ Woes May Cost Six Million Jobs Oil Down to Around $61 Ahead of OPEC Meeting Stunning Reversal: Russian Economy Shrinks 23% Is the US Dollar Heading for a Mighty Crash? The Credit Default Swaps Cancer Inflicting the Financial System “CDS is the root-cause of systemic risk which connects hundreds of …

Reader Mike W. sent this: At Estates of the Fabulously Rich, Gilded Era is Going, Going, Gone D.S. recommended the ShadowStats primers series. D.S. comments: “Most folks that read SurvivalBlog are economically savvy – still, the ‘primers’ by John Williams at Shadowstats.com are excellent and help us understand the systematic distortion (okay, bald faced lies) about the real US Economy … I think this may aid folks as the economy ‘sails off the map’ or as flat earth maps stated ‘beware, beyond here lye Dragons’. Hmmm, think there is a correlation between ‘flat earth cartographers’ and today’s sheeple?” From Jack …

GG sent us this: Gold bugs at last have their perfect trinity Also from GG: The American peso. JWR Adds: As I’ve mentioned before in the blog, 72 is the crucial level to watch for in the US Dollar Index (USDI) . Anywhere south of there for more than two weeks could signal a collapse in international confidence in the dollar. Mike W. flagged this piece by Caroline Baum: Inflation ‘Cure’ Exposed When In-Laws Move In Also from Mike W comes this Wall Street Journal article on self-employment: Ready to Be the Boss? From HPD: Jesse’s Café Américain: Bernanke’s Wager …

Kevin A. sent us the link to a video clip about Mandelbrot protege Nicholas Taleb, of “Black Swan” fame: The Risk Maverick: Present Economy Worse than Depression. Mac F. recommend this basic, commonsense article: Money Shaky? 10 Ways to Get Your Financial Footing Items from The Economatrix: Fed President Says Inflation To Increase GM Borrows Additional $4 Billion From Treasury Didn’t publicly disclose how it would use the money. Fed Changes Rules to Benefit Government Carmakers California Faces its Fiscal Day of Reckoning Propane Suppliers Quietly Reduce Size of Refills Consumers unaware they are getting less for the same price …

From frequent content contributor KAF: Congressional Budgeters Predict 10.5 Percent Unemployment Rate Next Year Also from KAF: The Inside Story of Bank United. (How all those Option ARM loans came back to bite them.) Items from The Economatrix: Three More Banks Closed This Week Federal Reserve Cannot Account for $9 Trillion The Economy is Down But The Cost of Living is Going Up (Most canned vegetables at Wal-Mart were 50 cents per can last summer, now they are 72-to-74 cents per can.) US to lose AAA Rating? Dollar Falls to Four-Month Low Against Euro Stocks Hit ’09 Low on Ratings …

Reader GG suggested: Uncle Sam’s ‘F’-rated bonds GG also mentioned this piece by Mish Shedlock: FDIC to Open a Temporary East Coast Satellite Office. (Could they be expecting more bank failures or perhaps bank runs? The MOAB keeps expanding: Feds give $50 Million in aid to towns hit by auto layoffs. (Thanks to Tony Y. for the link.) Items from The Economatrix: Here Comes the Option ARM Explosion Russia Dumps US Dollar as Basic Reserve Currency Fannie and Freddie in “Critical” Condition Real Unemployment, GDP, Etc. Numbers Britain’s AAA Rating Threatened by S&P’s Stark Warning Conjuring Monster (The Mogambo Guru)

HPD found this: Mish’s Global Economic Trend Analysis: Automotive Pension Disaster; $42 Billion in Pension Promises Completely Unfunded Also from HPD comes word that another bank has bit the dust: BankUnited Bidders Said to Be Told Bank to Be Seized GG sent this bit of MOAB expansion news in the Wall Street Journal: Fed Boosts Efforts to Aid Commercial Real Estate Items from The Economatrix: Geithner: Major Banks Have Raised $48 Billion (Under the new FASB accounting rules or the old?) China Grows More Picky About Debt Local Banks Face Big Losses “Study of 940 lenders shows potential for deep …

The Economy’s Search for a “New Normal” (Thanks to Richard S. for the link.) Currie sent us this: Europe in deepest recession since War… “…The declaration was made as it emerged that Europe’s biggest economy has now suffered a worse “lost decade” than Japan and is deeper in recession than any other major economy.” Also from Currie: Japan – Major banking groups report massive losses Items from The Economatrix: From the French think tank: When The World Steps Out Of A 60-Year-Old Referential Framework As Detroit Crumbles, China Emerges as the Auto Epicenter Don’t Count On China to Rescue the …

Readers “Bigbird” and Trapper Mike both sent this: Brazil and China eye plan to axe dollar John Hussman warns: Inflation Ahead! The Destructive Implications of the Bailout – Understanding Equilibrium (Thanks to GG for the link) Frequent content contributor GG sent us this: Tax Revenues Tanking. Yikes! Look at the tax receipts for April of ’08 versus April of ’09. I suspect that the panic reaction in Congress will be raise the marginal tax rates. Thanks to DS for sending this: Stocks waver after surprise drop in housing data (This leads me to ask: Why are journalists so surprised that …

From frequent content contributor GG: China holds sway over US Dollar “The U. S. should be afraid, very afraid. China is questioning the dollar’s status as a reserve currency and, at US $1,000 an ounce, gold has become the world’s de facto currency.” – John Ing, Maison Placements in Canada Mike S. suggested a piece titled “Obsessive Housing Disorder” on Michelle Malkin’s blog, that describes the history of our dysfunctional housing market. HPD sent us a link to a piece by economic commentator Mish Shedlock: If You’re Not Petrified of Obama, You’re Not Paying Attention Items from The Economatrix: AP …

GG sent us this: CBO admits for first time chance IMF may default From The Daily Bell: Jim Rogers: Food prices will skyrocket. Raise rates soon or face inflation disaster, experts warn… Items from The Economatrix: Hot In Recession: Cheaper Wine, Chocolate, Running Shoes, Spam GM, Chrysler Dealership Cull to Cost 100,000 Jobs The Return of the Banker’s Bet $3 Trillion Later… “Could there be a better time to be a bank? Governments are endorsing high leverage and guaranteeing huge parts of the financial system, so you get to keep the profits and palm off the losses on the taxpayer.” …

Yishai was the first of several readers to mention this “must read” piece: US speeding towards financial crash   Jimmy G. sent this: Stocks still face deflationary collapse: Prechter. I agree that there will be deflation, but only in the short term. I still see Uncle Sugar’s only viable option is inflating their way out of this mess. This leads me to coin a new motto: Never underestimate the ability of governments to print money. Items from The Economatrix: Six Insurers to Get Billions in Bailout Money (JWR Notes: The MOAB won’t stop growing!) GM to Close 1,100 Dealerships Consumer …