Category: Economics & Investing

U.N. calls for replacement of U.S. dollar; Joins Russia, China and G20 with demands IMF step forward (Thanks to Laura H. for the link.) Reader John M. suggested a Market-Ticker link that clearly describes the urgency of the financial situation: Warning: Deflationary Collapse Ahead. Items from The Economatrix: Derivatives Still Pose Huge Risk, BIS Says How the Collapse of Lehman Bros. Averted a Second Depression Geithner Exaggerates US Government Retreat Natural Gas Prices Spike 12% (Even with warehouse tanks bulging!) Stocks Subdued Amid US-China Trade Tension Wall Street Crisis One Year Later: Lehman, WaMu Lead List of Biggest Bankruptcies Wall …

Wow! Take a look at the latest market tickers for spot silver and spot gold. We might soon witness some profit-taking that could temporarily drive silver back to the $12 per ounce range. But consider that a buying opportunity. The next leg up will probably be in November, when The Chartist Gnome predicts silver over $18 per ounce and gold over $1,070. For those that already have bought metals: Do not attempt to “time” such a volatile market. Just hang on, and as the Gnome says, “Be ready for a roller coaster.” Items from The Economatrix: The Ghost Fleet of …

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 …

“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” …

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 …

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 …

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

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 …

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 …

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 …

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 …