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 $100 Bills. (See the Economy & Finance section.)
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Do you like nuggets? Here is a great collection of photos, sent to us by reader H.L.: The most gigantic gold finds of all time
Economy & Finance:
Next, over at Seeking Alpha: An Honest Look At Recession Risk – A Simple Model Tells You How Close We Are
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The Fed Chair Just Admitted On Record That The US is Heading For a Debt Crisis. (Thanks to H.L. for the link.)
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Readers D.S.V. and G.P. both sent this: There’s been a mysterious surge in $100 bills in circulation, possibly linked to global corruption. Here is a key passage in the lengthy article:
“There has been pressure to get rid of high denomination notes to curb international crime. Lawrence Summers, former Treasury secretary and director of the National Economic Council in the White House, has argued for abolishing $100 bills. Summers wrote an op-ed in The Washington Post in 2016 titled, “It’s time to kill the $100 bill.”
“A moratorium on printing new high denomination notes would make the world a better place,” Summers said, citing its potential for crime. “Here is a step that will represent a global contribution with only the tiniest impact on legitimate commerce or on government budgets. It may not be a free lunch, but it is a very cheap lunch.”
He referenced a Harvard research paper written by former Standard Chartered bank chief executive Peter Sands, who argued to eliminate high denomination, high value currency notes.
“By eliminating high denomination, high value notes we would make life harder for those pursuing tax evasion, financial crime, terrorist finance and corruption,” Sands wrote.
The global illicit money flows were “staggering” and fuel crimes from drug trafficking and human smuggling to theft and fraud, Sands said. He estimated that depending on the country, tax evasion robs the public sector of anywhere between 6 percent and 70 percent of what authorities estimate they should be collecting. And despite “huge investments in transaction surveillance systems, and intelligence, less than 1 percent of illicit financial flows are seized.”
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A good primer, recently updated: Commodities trading: An overview
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Neccos Candies Futures: I told you so. The average asking price has quintupled, in five months. Don’t eat up your profits.
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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!