Category: Economics & Investing

The Big Roller Coaster is Picking Up Speed

The following are few random observation on current events: 1. Economic News 1A. The recent turn for the worse for Great Britain’s economy has sent shock waves around the globe. I expect this bad news continue, and intensify in the months to come, especially once the full implications of the Credit Default Swap (CDS) derivatives fiasco become known. 1B. It is interesting to see that the COMEX spot silver and spot gold markets are breaking out of their doldrums. Apparently, the big investors have come to realize that there are simultaneous credit market-spawned economic problems in North America, Europe and …


Four Letters Re: The Gray Man in the Coming Storm

Jim: “E’s” Gray Man concept is cowardly, standing idly by as evil men corrupt this fine country. The Citizen, on the other hand, works to preserve and protect the liberties that we now enjoy, in opposition to men and women who wish to do those liberties harm. The Citizen knows the power of government is kept in check only by the citizenry-at-large. He (or She) is not afraid to oppose totalitarian policies, because he knows to remain silent will surely result loss of his rights. He understands the Constitution and respects the ideals of the fore-fathers. He knows they didn’t …


Letter Re: The Real Threat is Deflation

Greetings Jim, As always you have such great content on your site – I find myself constantly looking for “tomorrow’s” post today as I end my evening on the West Coast. Regarding the post by David R: ‘The Real Threat Is Deflation’, I’d like to mention a great article over on www.Mises.org called ‘Falling Prices Are The Antidote To Deflation’. Thanks to your guiding me towards studying and understanding the Austrian School of Economics, this web site has become, like yours, one that I seek out with my morning coffee. Another great article recently posted on their web site, and …


Letter Re: The Real Threat is Deflation

Mr. Rawles, I greatly respect your advice and columns on most matters yet I continue to see people like yourself claiming we are facing an inflationary holocaust. People in the inflationary camp point to the size of the Mother of All Bailouts (MOAB) or the rate or printing as if that number alone meant something. You cannot take that number alone, sir, but must measure it against the value of assets that have been destroyed by the deflation going on around you. The total inflationary pulse from Europe, Japan, and the US thus far is approximately $7.5 trillion as best …


Inflation, Taxes, and Self-Sufficiency

I recently received an e-mail from T.F. in Utah, who quipped: “They tell us that inflation is now non-existent. Well, how many years of deflation will it take to get prices back to where they once were? It is noteworthy that the average annual property tax on a house on a city lot now exceeds the entire land purchase price and construction cost of a comparable square footage house, in 1890.” Inflation is indeed insidious. And its has implications that are far-reaching. For example, consider the following: Creeping tax increases one of the reasons that it is now nearly impossible …


Letter Re: CNN to Air I.O.U.S.A. Today and Tomorrow

James, This coming weekend, CNN will broadcast a program called I.O.U.S.A. It’s a documentary about the United States debt – which is out of control, an expose on just how bad our current economic crisis is. Karen and I believe that becoming educated about what is possibly the biggest problem in our lifetimes – is critical. So we write this email to you today hoping you’ll watch this program and get involved. If we sit idly-by and watch from the sidelines as our Federal Government continues to spend our hard earned tax dollars – in an out of control fashion, …


Our 2009 Predictions, by Roger Wiegand

We think we now have enough data from both the fundamentals and technicals to make some serious forecasts and predictions for 2009. While 2008 was a nasty year when lots of things imploded, they are far from being repaired. Treasury Secretary Paulson told us this week there are no more surprises, which tells me we haven’t even discovered but a small portion of this monster derivative mess. His ripping-off of the taxpayers to the tune of $700 billion is only a warm-up. However, the larger question for traders and investors is what could happen next and when. In the following …


Letter Re: The U.S. Expatriation Exit Tax

Hi JWR, Here’s another one for your readers. I’d heard of this “exit tax” a few months ago and it was completely ignored by the mainstream media (MSM). At first blush, it doesn’t appear to impact most people, i.e. only those over $4 million USD net worth for couples who renounce U.S. citizenship and leave. However, we all know how well the alternative minimum tax (AMT)–the so-called millionaire’s tax–worked out. It was supposed to affect only several hundred tax “scofflaws”, and now because of inflation, millions of citizens are affected. A few years of 50% inflation will put most professional …


The MOAB Expands Yet Again: Five State Governors Seek $1 Trillion from Uncle Sugar

Back in November I reiterated my point that the Mother of All Bailouts (MOAB) would know no limits. One of my specific warnings was: “The States – Some 29 of the 50 states are reporting budget crises. Lo an behold, most of the hardest hit states are those with bloated Nanny State bureaucracies. No surprise there. The states that had the worst fiscal management, of course, will get the biggest share of the taxpayer funds. Those that were fiscally conservative will get nothing.” A recent wire service headline confirmed that prediction: U.S. governors seek $1 trillion federal assistance.The article begins: …


From the SurvivalBlog Archives: Inflation–Past, Present, and Future

It has been said that nothing is inevitable except death and taxes. But personally, I add inflation to that list. Inflation is an insidious hidden form of taxation We’ve been robbed! According to The Inflation Calculator, what cost $100 in 1905 would cost $2052.36 in 2005. The U.S. dollar has lost 95% of its value in that time. (If you were to buy exactly the same products in 2005 and 1905, they would cost you $100 and $4.87 respectively.) The inflation rate jumped considerably in the 1960s and 1970s. It is no coincidence that the U.S. Treasury stopped minting real …


Letter Re: The Best College Degrees for the Next Depression?

James, longer this [economic death spiral] goes on, the more it looks like this is going to be at least a decade before normality returns. So, if you’ve got a teenage kid you’re probably thinking, what kind of career (assuming we don’t totally melt down at a societal level) path he or she should take… I was talking to someone the other day and he told me his kid was studying art. “Oh, I asked, is he any good?” He replied “No, not really.” This family man is spending good money, money that could be put into preparations into a …


Two Letters Re: What Are the Best Magazines for Investment?

Jim Here’s my feeling on what pistol mags to obtain. Obviously, if you have a high capacity handgun, it behooves you to have at least ten mags for it. I actually have 30 Glock Model 19 mags since I already have one and contemplate picking up another that a friend wishes to sell. I’m also trying to pick up Glock 17 mags, even though they stick out the bottom of my G19. I really want a Glock 34 long slide 9mm, and figure that the only way I may be able to get mags for it down the road is …


Letter Re: What Are the Best Magazines for Investment?

Dear JWR: I took your wise advice posted in the blog back in October and stocked up on magazines for all my guns. I ‘ve even bought some mags [for other guns] that I just plan to buy, such as M14 magazines for my eventual super match M1A buy. But what I’m thinking is, I should also do is by even more magazines just “on spec”, knowing that with Obama coming in[to office, that] a ban of some sort is more likely that not. What types/model high capacity magazines would be best to invest in, for the most possible gain? …


Fear and Loathing in America’s Age of ZIRP

You’ve surely heard by now that the Federal Reserve has effectively lowered interest rates to zero. Obviously having learned nothing from the mistakes of Japans’s decades-long recession, Ben Bernanke & Company have instituted their own Zero Interest Rate Policy (ZIRP). By artificially lowering interest rates, many economists predict that the Fed will actually delay economic recovery for many years. ZIRP was a failure for Japan, and I predict that it will be a spectacular failure for the United States. The Fed could, in fact, lower interest rates below zero, to the so-called “Super Zero” range. Such absurdities are not impossible …


Letter Re: My Preparations are Fairly Complete, So What Next?

Dear Jim, I have been saving money and selling some of my unnecessary items and toys for a while now and have amassed $42,000. I have plenty of firearms and ammunition, tools, a house that is semi-remote, and a stash of food (which isn’t enough I’m sure). I have paid off my credit cards and only have a house payment left. My job is relatively secure I feel, as I work at a power plant; though once the coal stops moving I wont be needed, I guess. I’m not sure what iI should do with the money I have saved. …