Category: Economics & Investing

Economics and Investing:

G.G. flagged this: Silver outshines gold for investors. “Sales of silver American Eagle coins have reached just over four million ounces so far in 2009, almost double the rate of last year, when sales reached 19.6 million ounces for the full year.” Pat M. forwarded this Reuters news video: Hard Times Push Brits to Bartering Frequent contributor Bill N. recommended this commentary by Paul Craig Roberts: How the US Economy Was Lost. Items from The Economatrix: Watch Now as Pension Funds Get Vaporized Ron Paul: This is an End of an Era…We Can’t Reinflate the Bubble Boomers: 30% Underwater Weak …


Depression Proof Jobs for a 20 Year Depression – Part 2: Developing a Home-Based Business

Yesterday, in Part1, I discussed the “safe” and counter-cyclical occupations for the unfolding economic depression. Today, I’d like to talk about one specific approach: self-employment with a home-based business. I posted most the following back in late 2005, but there are some important points that are worth repeating: The majority of SurvivalBlog readers that I talk with tell me that they live in cities or suburbs, but they would like to live full time at a retreat in a rural area. Their complaint is almost always the same: “…but I’m not self-employed. I can’t afford to live in the country …


Economics and Investing:

A picture is worth a thousand words: Graph of Four Bad Bear Markets. Based upon house prices, commercial real estate prices, and stock P/E rations, I’d say the markets have another 50% or more to fall, and the painful process may take another eight to ten years. And that is just to reach rock bottom, There may be another 10 years of climbing back up out of the hole that “Easy Al” Greenspan and his successors dug for the planet. (Link courtesy of Jesse’s Café Américain blog, and brought to our attention by SurvivalBlog reader Ben H.) Thanks to Thomas …


Depression Proof Jobs for a 20 Year Depression – Part 1: The Counter-Cyclical Jobs

The current economic downward spiral has prompted several SurvivalBlog readers to write me and ask: “My job is now at risk, so what are the safe jobs?” I’ve actually addressed this topic fairly well since I started SurvivalBlog in 2005. We ran a “best recession-proof jobs” poll, back in May of 2006. Then, in February, 2007, we ran a poll on “Best Occupations for Both Before and After TEOTWAWKI”. Later, we even ran a poll on the current occupations of SurvivalBlog readers. In the past three years, we’ve also posted a panoply of more detailed employment-related letters and articles on …


Letter Re: Is it Deflation or Inflation Ahead? Should I Pay Down My Debts?

JWR, Thanks for the always excellent blog. I recently came into a significant wad of money, more than $100,000. I have been toying with my options. I owe around $200,000 on my house, but I can afford the payments no problem; I am self employed in a health-care related field that I do not expect to struggle. My thought process goes something like this: Why should I pay the mortgage down on my house since (1) I can afford my house easily, (2) with inflation coming I would rather pay it down with 2012 or 2014 dollars (that are “worth …


Economics and Investing:

E.L. sent us the link to this “must watch” seven minute video clip of from Fed Chairman Paul Volker. It has some interesting nuggets and is a somber assessment of the unfolding global economic collapse. Reader “Darth Paul” mentioned a video clip of an ex-IMF Chief Economist. Paul’s comment: “I especially got caught up at 6:40 on the counter: “Obama’s and Geithner’s choices for administration? It’s a huge problem!”, “I’m trying to be positive but my intuition from crises is that this is gonna get a lot worste…we are going down a long, dark, blind alley”.” Mark in Michigan flagged …


Economics and Investing:

Steven L. sent this bit of good economic news: Cabela’s shares surge on gun sales Eric S. sent this snippet from Bloomberg : “Gold is likely to more than quadruple from the current level of $986 per ounce currently to $3,500 in 2010, he said.” Reader “Jericho Jo” flagged this article from New Zealand: European chiefs propose global rules (for world economies). A quote: “Even the global crisis and a change of Administration may not be enough to convince the US to hand over its autonomy.”I see the US as wary of giving away powers of oversight and regulation,” said …


Economics and Investing:

Tamara over at the Books, Bikes. & Boomsticks blog mentioned Rick Santelli’s “rant of the year”, amidst cheers from the Chicago Merc trading pits. Stock market slump: Major stock market indexes fall to 1997 levels. Hmmm, let’s see, now adjusting for infaltion,… G.G. sent this: Foreigners Wary of Long-Term U.S. Securities. JWR’s comment: How long will it be before foreign investors start demanding higher rates of return.? Stagflation is coming, folks! I spotted this Wall Street Journal article linked at The Drudge Report: ‘Nationalize’ the Banks, Dr. Doom says a takeover and resale is the market-friendly solution. Several readers sent …


The MOAB Expands Again–Another $1 Trillion Slated for Hedge Funds

The Mother of All Bailouts (MOAB) keeps growing. SurvivalBlog reader PhotoTom sent us this: U.S. Tries a Trillion-Dollar Key for Locked Lending. Here is a snippet: “The Treasury Department and the Federal Reserve plan to spend as much as $1 trillion to provide low-cost loans and guarantees to hedge funds and private equity firms that buy securities backed by consumer and business loans.” I’ve been warning about the likelihood of hedge fund collapses for years. This first trillion dollars in bailout money for the hedge funds is little more than a kind gesture between banking buddies. But it won’t magically …



Economics and Investing:

The Army Aviator notes: “Just a head’s up, perhaps a sea change of some sort: Bloomberg[‘s televised financial news on Sunday] started off by saying that several Asian countries had pooled together a fund of $125 Billion to fight FOREX attacks against their currency but it didn’t seem like enough. Then they described Hillary’s visit to [mainland] China in an unusual way. Their comment: ‘We thought she was a presidential candidate but she’s just a bond salesman.’” From reader HPD comes this BBC news link: Is the US heading for a depression? The US economy is contracting sharply. Is there …


Perspectives on Prepping on a Very Low Income, by Kuraly

I was raised in a missionary family, on nine different mission fields around the world. At the age of nineteen, I went out to serve the Lord on my own in the former Soviet Union. I had no formal Theological training, but was accepted by the missionary societies of my denomination because of my experience under my father and my willingness to go to dangerous areas. I married, and my wife and I have now six children. A few years ago, due to some changes in my theology, I fell out of favor with my denomination and had to return …


Economics and Investing:

Several readers sent this: Santelli’s Chicago Tea Party Gone in 60 Days: Citi and Bank of America Won’t Live to See May (A hat tip to KT for the link.) Another Friday FDIC bank failure notice: Citizens Bank, Corvallis, Oregon, Assumes All of the Deposits of Silver Falls Bank, Silverton, Oregon Items from The Economatrix: Stock Decline Hits Depression Levels Get Ready for Mass Retail Closings (220,000 stores may close) GM Break-up Close as Saab Files Bankruptcy No Bailout Can Mend the Economy Now. A quote: ” …the life of the depression is being deliberately extended in order to complete …


Economics and Investing:

Justin sent us a link to an excellent documentary on the chain of events in the global credit collapse, with a bit of pro-interventionist coloring from PBS: Inside the Meltdown. Heather sent us this: Volcker: Crisis May be Even Worse than Depression Jim Willie nails it: Russia’s Post U.S. New World Order Blueprint ( A hat tip to KT for the link.) Luddite Jean in England sent us three bits of news of ill-portent: £2trillion – the terrifying total of our national debt… that’s £33,000 for every man, woman and child in Britain. — Car industry in meltdown as plant …


Economics and Investing:

We’ll start with a bit of levity, to temper all the recent bad news: The Monster Crash. (Kudos to Richard at KT Ordnance for sending the link.) I’ve added 90-Day and 5-Year price charts for silver and gold to the bottom of my Investing page. Reader M.H. sent a reminder that anyone in the US that is expecting a tax refund on their state income tax should file their tax returns as early as possible this year. As states increasingly run into budget crises, some taxpayers that wait until April 15th to send in their tax forms may end up …