Category: Economics & Investing

“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 …

Items from KAF: Gold Increases 2.3% as Greenback Drops China Pushes Silver and Gold Investment to the Masses Hong Kong Recalls Gold Reserves, Touts High-Security Vault Retailers Report Sales Decline for August More Americans than Anticipated File Jobless Claims Sugar May Drop 24% as Demand Stalls, Supply Grows Edinburgh Hedge Fund Feel Madoff Effect as Clients Get Pickier HSBC Says Switzerland Luring More Rich Foreigners as Taxes Rise And from HH: The $531 Trillion Dollar Derivatives Time Bomb The Nightmare of Contemplating Global Derivatives Fed Secretive for Good Reason Investors Rush into Gold Like 1849 Items from The Economatrix: The …

SEC’s Schapiro Calls Derivatives Data ‘Critical’ for Probe Jeff C. spotted this: IndyMac’s mortgage struggle. How does modifying a “liar loan” somehow magically make a semi-employed borrower credit worthy? From John in Ohio: Is America still depression-proof? Reader MSB mentioned: The Shell Game – How the Federal Reserve is Monetizing Debt Oldest Swiss Bank Tells Clients to Sell U.S. Assets or Leave (Thanks to DD for the link.) Exit strategy? Fed’s Plosser: U.S. rate increases could be rapid. (A tip of the hat to Brenda C. for the link.) JWR’s comment: This is starting to remind me of the policies …