Category: Economics & Investing

Letter Re: Net Producer-Net Consumer Equations for Self-Sufficiency: Getting Out of the Pit

James, Adding to the understanding of yesterday’s fine article “Net Producer-Net Consumer Equations for Self-Sufficiency: Getting Out of the Pit”, there is some serious historical data that your readers should be aware of. The Ludwig von Mises Institute has posted a book called “When Money Dies” on the experiences of the hyperinflation of the Weimar [Republic of Germany], which reads like headlines out of today’s newspapers. Remembering that history never repeats, it always rhymes, many of the underlying themes — the differences between country and city — will likely be similar. Because governments also have access to the same historical …


Economics and Investing:

GG flagged this Forbes article: Nouriel Roubini: “Brown Manure, Not Green Shoots” Several items from Reader DD: Buffet’s wants another stimulus GM on the road again Another retailer bites the dust Oil speculators under pressure Hawaiian K. sent word of a grim statistic: Freight Transportation Services Index (TSI) Fell 0.6 Percent in May from April Items from The Economatrix: US Apartment Vacancies at Historic High 565,000 New Jobless Claims “Lowest new claims since January” However, “Continuing claims, meanwhile, unexpectedly jumped to a record-high.” Retailers Report Weak June Sales Goldman Sachs Loses Its Grip on its Doomsday Machine Nation’s Banks to …


The Case for Accumulating and (Eventually) Using Silver Coins

I recently did a study of prices (food and gasoline) comparing the costs in the early 1960s with 2009 prices for the same items.  I chose the early 1960s because that was the last time 90% silver coins were in circulation.  It was common back then for people to go into a grocery store or gas station and pay for purchases with a few quarters or dimes.  The prices were that cheap back then. For my 2009 food prices I looked at the prices in my local Safeway store in Portland, Oregon.  I was careful to only look at the …


Economics and Investing:

New climate strategy: track the world’s wealthiest. This is the sort of fallacious logic that foments envy, and inevitably class warfare. Yes, Americans do use a disproportionately large portion of the world’s natural resources. But we also create correspondingly more with those resources. The gross domestic product (GDP) of the US is tremendous. Here is an illustration. (California, just by itself is the sixth largest economy in the world.) Consider this: Why does Kenya Airlines have Boeing 747s in their fleet? Because someone in America builds them. Could those planes be made in Kenya? No, because they have neither the …


Economics and Investing:

Reader Paul W. forwarded this piece over at Real Clear Markets: Get Ready for 14 Percent Unemployment GG sent this Wall Street Journal article: Big Banks Don’t Want California’s IOUs DD sent us four articles on unemployment: Unemployed fighting for their benefits A map of weekly unemployment benefits by state and current unemployment rate by state Low income families turning to outside sources to help with necessities Retailers to lay off more workers Karen H. also sent us another raft of articles: Migrants are going to Britain, come hell or high water. “Gazing across the Channel in the direction of …


Economics and Investing:

TJ Marta tells it like it is on Tech Ticker: Bailouts for Everyone, But Who’s Going to Rescue Uncle Sam? (Thanks to Trent for the link.) KAF sent this: Swiss banks drop U.S. clients due to UBS case Greg C. and GG both sent this: US lurching towards ‘debt explosion’ with long-term interest rates on course to double Items from The Economatrix: Oil Falls 4% on Economic Recovery Concerns Stocks Mixed Amid Conflicting Economic News Dollar Discomfort Thrust Onstage for Italy Summit As Retailers Cut Back, Cities Confront “Ghostboxes” US Service Industries Contract at Slowest Pace in Nine Months BofA …


The Nascent Depression: Be Ready to Barter and Adopt the Rhodesian View

I receive several e-mails each day from readers asking whether the currently-unfolding economic depression will be inflationary or deflationary, whether it will last long, and whether or not the US Dollar will be supplanted by a new currency. My answer is simple: “All of the above.” Back in early 2008, I warned that a depression with simultaneous inflation and deflation was possible. As I’ve mentioned several times in my blog, here in the US we are likely to see a continuation of the current gradual deflation followed by a period of mass currency inflation. Plan accordingly. Try to start looking …


Economics and Investing:

Sterling Crisis Looms as UK Unraveling Points to Budget Cuts (Thanks to Heidi for the link.) Tom G. flagged this: Unwinding at AIG Prompts Pasciucco to Ponder System Failure Frank S. mentioned this grand understatement: Biden: ‘We Misread How Bad the Economy Was’ Items from The Economatrix: Another Wave of Foreclosures is Poised to Strike [That is hardly a news flash for SurvivalBlog readers!] Obama Expands Housing Rescue: Six Things to Know Joel Skousen: Cap and Trade Bad For a Sick Economy US Stocks Slide in Dow’s Worst Drop Since April on Jobs Data With Economy Down, Cities Growing (Rather …


Economics and Investing:

Jasper M. sent word of the never-ending, ever-expanding Mother of All Bailouts (MOAB): Krugman: U.S. Headed for Jobless Recovery. “Nobel-Prize winning economist Paul Krugman said the nation is on course for a “prolonged jobless” economic recovery unless the Obama administration steps in with a second round of government stimulus money.” Redaer Karen H. kindly sent the following items: Weak US jobs data dashes quick recovery hopes G8 alone can’t solve world’s problems. (This changes the players) China wants diversified global monetary system Items from The Economatrix: Credit Report Warns of Russia’s Imploding Banks A Bank Run Teaches Amish About Risks …


Economics and Investing:

From Mish Shedlock: Sweden Cuts Deposit Rate to NEGATIVE .25% Treasury’s Distressed Debt Plan Said to Begin With $20 Billion Morgan Stanley May Post Loss After Paying Back U.S. Bailout Funds China’s Zeng Urges More Oversight of Reserve-Currency Nations “DD” sent this: Dow off 223 as unemployment jumps; The dismal report on job losses startles traders. The S&P is now a loser on the year, and oil falls below $67.


Economics and Investing:

Nick Taleb declares: ‘We’re in the Middle of a Crash‘ (Thanks to GG and A.W., the first if several readers to send that link) John W. notes: Seven more banks closed “and it’s not even Friday yet…” Ray G. sent news that unemployment at a 26-yer high: U.S. job losses spike in June, dampen recovery hopes From Cousin Bill: New York City Apartment Sales Down More Than 50% FDIC Proposes Tough Investor Guidelines For Failed Banks Items from The Economatrix: Obama Confident in Economic Recovery Despite Jobs Report Prime Mortgage Delinquencies Up 260% The Monumental Cap and Trade Outrage (video) …


Economics and Investing:

Reader Wayne S. sent us a link to an interactive map with three “toggle” views that gives some very useful and interesting information for anyone looking to relocate. Wayne notes: “It’s truly amazing to see that most of the states that have done the best job managing their budgets are also the same states that infringe upon personal liberties the least…. Coincidence or not? As you have said many times on your blog, ‘vote with your feet!’” Reader HPD suggested this piece by Thorsten Polleit: Inflation: What You See and What You Don’t See From frequent content contributor GG: U.K. …


Economics and Investing:

The Federal Reserve and the U.S. Treasury are cooking the books! Read between the lines in this Wall Street Journal article: Is Foreign Demand as Solid as It Looks? (Thanks to GG for the link.) Once a nation’s treasury starts “creative accounting” and debt monetization, then the handwriting is on the wall. The death spiral for the US Dollar has already begun. It just won’t be obvious to everyone for another 6 to 12 months. That is when mass currency inflation will likely begin, and once it does, barring a miracle, there will be nothing that can stop it. F.G. …


Economics and Investing:

New Hampshire’s Senator Gregg slams the growth of the Federal Debt on an IBD editorial: A Debt The Founders Wouldn’t Believe. (Thanks to GG for the link.) GG also suggested this piece: Depression 2.0 by Michael S. Malone Patrick M. like this one: The Great American Bubble Machine Items from The Economatrix: Banks Reap Record $9.8 Billion Trading Derivative in First Quarter “The U.S. banking industry said it made $9.8 billion during the first quarter trading derivatives and securities as investors started returning to the markets amid signs the recession bottomed.” States Form Committee to Oppose GM Sale to US, …


Letter Re: An Upcoming Retreat Purchase — Sell Gold or Take a Mortgage?

Jim, We love your site. It is part of our daily must reads. While driving to view possible retreat locations today, we printed out your advice on retreat locations and read it again as we drove to the determined area. After looking most of the day, we literally stumble upon (because it was not visible from the road – only a for sale sign) a nearly perfect location, several springs, trees, hillside with level areas, in the top three in all categories of your retreat lists, etc. In looking to make an offer we wanted your advice regarding financing the …