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. Most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, we look at the uncertain future of private cryptocurrencies. (See the Cryptos section.)
Precious Metals:
2020 Gold Price Forecast And Gold Thesis
o o o
Gold Gains 8% and Silver 18% In Week As Fed Balance Sheet Tops $5 Trillion
Economy & Finance:
All T-Bills Up To 3 Months Now Have Negative Yields
o o o
o o o
At Wolf Street: The Downgrade Massacre Has Started
o o o
Five Economists Who Say This Recession Will Be the Next Great Depression
o o o
A Word About the Horrid Spike in Unemployment Claims and Why it’s Even More Horrid Than it Appears
Commodities:
‘Can’t Even Give It Away’: Gasoline at $1 Is Warning for Economy. Here is a snippet from the article:
“London, Kentucky, became the first U.S. city to see pump prices fall below $1 a gallon as coronavirus-related lockdowns halt transit across the country — and it won’t be the last.
Several others are poised to join the club in the coming days as the pandemic crushes fuel demand and sends the economy to the brink of a recession. While cheap fuel usually spurs gas-guzzling Americans to hit the highways, the latest downturn in prices portends dark times ahead.”
o o o
OilPrice News reports: Canadian Drillers Face Nightmare Scenario As Oil Crashes To $5
o o o
WTI Tumbles To $21 Handle After Saudis Crush Hopes Of Russia Detente
Taxes & Public Debt:
At Zero Hedge: Senate Releases Full Text Of $2 Trillion Stimulus Bill: Here’s What’s In It
o o o
Poynter Institute: Where does the government get $2 trillion for a coronavirus bailout? Here is a quote:
“It was only a couple of weeks ago that the Congressional Budget Office issued its newest projections that said debt will reach 98% of gross domestic product by 2030. On our current course, the CBO said, debt will grow by $13.8 trillion — from $17.5 trillion today to $31.3 trillion — by 2030.
All of this to say: Journalists, when you report on the bailout, don’t just toss around numbers like $2 trillion like that money is growing on trees. Ask how we are thinking about repayment. We are heading into an election where candidates will have to speak to this issue more urgently. Everybody wants relief from whatever is upon us and relief is not free.”
o o o
Update on Federal and State Tax Responses to COVID-19 Pandemic. JWR’s Comment: Of course there has not yet been any mention about how the huge expenditures will affect tax rates in 2021 and beyond…
Cryptos:
Over at Dollar Vigilante: Planned-Demic 2020: War on Cash Goes Into Overdrive, New US Digital Currency Added to Coronavirus Bill
o o o
Ethereum Is In Downtrend But This Variable Can Trigger A New Rally
o o o
Despite 10% Crash, Bitcoin Price Still Has This Key Silver Lining
o o o
When I last checked, the cost of one Bitcoin (1 BTC) in USD was back down to $6,101.I still do not recommend putting more than 5% of your discretionary investing funds into cryptos. – JWR
Tangibles Investing:
Tomorrow (Tuesday, March 31, 2020) see the feature-length article that I authored on firearms market trends.
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
News Tips:
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 closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News from local news outlets that is missed by the news wire services is especially appreciated. And it need not be only about commodities and precious metals. Thanks!
1) In the 2019 tax return instructions, the IRS is demanding that you report information on — and pay taxes on– transactions in virtual currency.
Including “The receipt or transfer of virtual currency for free (without providing any consideration) including from an air drop or following a hard fork”
Instructions for Schedule 1, page81 of 1040 instructions.
“All your Bitcoins belong to us”
2) If you need a laugh go to the back to the section titled “Your Rights as a Taxpayer”
Time to cycle fuel reserves,price of gas less than oil input at some places($1.14 local),refineries will NOT operate at a loss but shut down for “maintenence” or have a “accident” and no they cannot be forced to work.
HUGE demand for gardening seeds :
https://www.washingtonpost.com/lifestyle/home/an-onslaught-of-orders-engulfs-seed-companies-amid-coronavirus-fears/2020/03/27/5a19ccca-6ec7-11ea-aa80-c2470c6b2034_story.html
Evidently urban yuppies believed Michael Bloomberg when he said farming is easy — you just scratch a hole in the dirt, drop in a seed and sit back for the big harvest.
Kinda like trading AAA rated subprime mortgage securities. Any fool can do it.
Well, we’ll see.
From your post: “Well, we’ll see.”
Oh how right you are, Don Williams!
Low gas prices have in the past been exploited by the state as an opportunity to raise gas taxes because the increase is barely noticeable.
New York City has only 2.5% of the US population but today it has over 30% of the dead from this virus — UP from 20% about a week ago.
NYC’s Rich have fled to vacation homes in the Hamptons, Jersey Shore etc — to the anger of local residents.
Meanwhile, twitter hashtag #Guillotine2020 suggests cooping people up for weeks can lead to ….er …unrest.
https://twitter.com/search?q=guillotine2020&src=typed_query
Of course, the REALLY Rich are in the Redoubt, wearing Wrangler jeans and trying to blend in /look like blue collar ranch hands.
https://nypost.com/2020/03/14/why-so-many-billionaires-are-escaping-to-teton-county-wyoming/
There are plenty of big name celebs, and unknown wealthy, and politicians in and around what has been referred to as the mini Aspen, Colorado, that is Whitefish, Montana. Some of them have retreats here in the Redoubt, but couldn’t pass as locals, or traditional Americans either.
Truckers Call for Second Amendment Right Nationwide During Emergency
by Dean Weingarten
Posted on March 26, 2020
Ammoland Inc.
https://www.ammoland.com/2020/03/truckers-call-for-second-amendment-right-nationwide-during-emergency/
News from Germany, Economic Minister “suicides” by train. Married with 2 young children but no suicide note?