Economics and Investing:

GOLD & SILVER: Up In A Sea of Red… Get Used To Days Like This

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The Bankers’ India Gold Grab

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Items from Professor Preponomics:

US News

The “Services” Based Economy Delusion (Contra Corner) Excerpt: “In short, the service economy may well be doing fine, though I doubt it, but in the end it won’t be nearly enough to save anyone.”

Macy’s to Cut Up To 4,800 Jobs After Weak Holiday Sales (ABC News) The real data is incoming no matter the tendency to blame the weather. Excerpt: “Macy’s said that unseasonably warm weather that extended through December was the biggest culprit and hurt shopper demand for cold-weather items, from boots to coats. That forced Macy’s to step up discounts to clear out mounds of merchandise.”

Crude Below $33 as Oil Prices Fall to Lowest in a Decade (Business Insider) Excerpt: “Oil prices plunged to levels not seen in more than a decade on Thursday, hammered by the continuing turmoil in China, the world’s second biggest oil consumer.”

Puerto Rico is Preparing for Legal Action from Creditors (CNBC) I do believe the expression goes something like this: Let the lawsuits begin! Excerpt: “Puerto Rico is bracing for impending lawsuits brought by its creditors following the commonwealth’s second default in the past five months.”

Opinion: The Banking System Faces an Existential Threat — and It’s Not Bitcoin (Market Watch) Interesting history, an informative read, and the radical idea that banks should have to back all loans with 100% in reserves… Excerpt: “When global crisis finally struck again in 2008 it was different from 1929 in that there was no world war to blame for the global economic imbalances; this crisis followed an extended period of the banks having had things pretty much their own way. Instead, it was a giant version of the regular crises inherent in the system. This led to the thinking that it is the banks, and indeed the system they created around themselves, that need changing.”

International News

Market Confusion in China Has Investors Fearing the Worst (Reuters) Excerpt: “Whether China’s latest market upheaval is by design or default, it’s little surprise that investors are increasingly assuming the worst.”

Venezuela’s Bizarre System of Exchange Rates (Mises Institute) Excerpt: “Venezuela is currently going through its worst crisis in history, replete with an endless list of interesting problems. Foremost among these are severe shortages in even the most basic of necessities. Economists have used these shortages as textbook examples to illustrate the pernicious effects of price controls.”

Personal Economics and Household Finance

Most Americans are One Paycheck from the Street (Market Watch) Excerpt: “Approximately 63% of Americans have no emergency savings…”