Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today’s focus is on Black Gun Lowers. (See the Tangibles Investing section.)
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Global Economy & Finance:
From Wolf Richter: What the Fed Actually Said About Ending the QE Unwind. Here is a snippet:
“That the QE unwind would continue on autopilot at least until the next meeting was clear from the post-meeting Implementation Notes, released on January 30. And it was repeated in the minutes – same language as it has been since late 2017.
“The Committee directs the Desk to continue rolling over at auction….” Up to $30 billion in Treasury securities and up to $20 billion in mortgage-backed securities would be allowed to mature and roll off the balance sheet without replacement, same as before.”
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Venezuela: Hunger, punishment and fear, the formula for repression used by authorities under Nicolás Maduro. (Thanks to G.P. for the link.)
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As The Real Estate Market Slows, Canadians Continue To Plunder Equity From Their Homes. Here is the crux of the article, at Zero Hedge:
“Canadians are accelerating the rate at which they borrow cash against their homes, despite the fact that the real estate market is slumping in the country. This exposes the country’s financial system to obvious vulnerabilities, according to rating company DBRS and Bloomberg.
Home equity lines of credit in Canada reached a record $184.5 billion (USD) as of October 31, which equates to 11.3% of total household credit. This is the highest share since mid 2015, according to a report released last Thursday. Canadians are drawing on their home’s equity to fund everything from home renovations to car purchases.
And they’re doing it so quickly that borrowing has grown faster than mortgages since 2017.
Analyst Robert Colangelo, who published the report on Thursday, commented: ‘The flexibility of Helocs could increase financial system vulnerabilities. In the event of a correction, borrowers could find themselves with a debt load that exceeds the value of their home, which is often referred to as negative equity.'”
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Tangibles Investing (Black Gun Lowers):
Oregon rental property just became a very poor investment: Oregon housing squeeze sets stage for statewide rent control
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An Observation: The current gun-grabbing push in the U.S. Congress seems to be directed toward background checks and Red Flag laws. The Dianne Feinsteins of the world would love to get the “whole enchilada”, but they are pragmatists. They are contenting themselves with taking our freedom one bite at a time. The current bite seems to be directed at gun buyers and owners, rather than attempting to legislate against whole categories of guns or magazines themselves. So, at least for this year, they are de-emphasizing black rifle bans and magazine bans.
Therefore, from a tangibles investing standpoint, for anyone living in the
43 42 states without “universal background checks”, I would recommend shifting your emphasis toward private party (paperless) purchases that will round out a well-balanced gun battery for your family and for your current or future grandchildren. Since it appears that upper halves (“barreled uppers”) will continue to be unrestricted until at least 2020, you should concentrate on buying private party FRAMES/RECEIVERS (‘lowers”), for your planned builds. That is the most efficient use of scant gun investing dollars.
If you can find some private party serialized black gun lowers at gun shows, then great, jump on them. Ditto for any seriallzed SIG P320 Trigger group modules you can find. (Legally the “frame” of that model pistol.) But if you cannot find lowers and you cannot presently afford to buy complete rifles, then you should consider making your own, using unrestricted 80% complete lowers. And no, you don’t need to invest in a Ghostgunner milling machine. You can finish 80% black gun lowers with a drill press, or even with a hand-held drill if you use a drill guide and are careful and patient.
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often get the scoop on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!