Economics & Investing For Preppers

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 Really Big Helicopter Drop of Money.

Precious Metals:

Gold and silver prices down as risk appetite up late this week

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​Physical Gold and Silver to Continue to Soar on Massive Demand and Money Printing Everywhere

The Really Big Helicopter Drop of Money

It was Milton Friedman who famously coined the term “helicopter money” and Ben Bernanke was the first Federal Reserve Chairman to seriously consider using it. Well, figuratively, Uncle Sam has borrowed one of those really big heavy lift helicopters, from Russia. (Pictured.)  I found several of the following news items aggregated in the highly-recommended McAlvany Intelligence Advisor Daily G-2 e-letter.

The U.S. has thrown more than $6 trillion at the coronavirus crisis. That number could grow. JWR’s Comment:  A trillion here, and a trillion there, and pretty soon you’re talking about real money. (I’m of course amplifying Senator Everett Dirksen’s famous yet supposedly misattributed comment:  “A billion here, and a billion there, and pretty soon you’re talking about real money.”)

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Florida woman trying to withdraw stimulus check finds $8.5M in her account

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Gavin Newsom announces coronavirus cash payments to illegal immigrants. JWR’s Comment:  Only a life-long Democrat would consider incentivizing illegals aliens to stay, just as unemployment is spiking at the highest level since the Great Depression.

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Zero Hedge: The $349 Billion Small Business Loan Program Is Now Out Of Money.

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Coronavirus Relief: Proposed Bill Would Give Americans $2,000 A Month During Pandemic

Economy & Finance:

JohnnyMac, at American Partisan: Our Economic Future – Q3 & Q4 2020

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5 million more people filed jobless claims last week, bringing total to almost 22 million in one month

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At Zero Hedge: Story Time 1929-1936

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At Wolf Street: How Will Covid-19 Lockdowns Hit the Housing Market? It Gets a Little Clearer

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And another from Wolf, with charts: Here’s Where Retail Sales Spiked and Collapsed in 11 Mind-Blowing Charts of Lockdown Land

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Overcapacity / Oversupply Everywhere: Massive Deflation Dead AheadJWR’s Comment: Be prepared for deflation followed by mass inflation, as most of the central banks attempt to inflate their way out of this mess.

Commodities:

Some wholesale market news: Gasoline Is Selling for 12 Cents a Gallon and Nobody Wants It

o  o  o

OilPrice News reports: Oil Prices Hit $15 For The First Time In 21 Years

Derivatives:

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JPMorgan Chase and Citibank Have $2.96 Trillion in Exposure to Credit Default Swaps

Forex & Equities:

Dollar edges up as overnight optimism proves short-lived; euro falls

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ForexLive Asia FX news wrap: Market hungry for encouraging coronavirus news

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Over at Seeking Alpha: This Bear Market Is Far From Over

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Stocks Extend Weekly Rally on U.S. Reopening Plan: Markets WrapJWR’s Comment: This smells like a Bear Trap Rally, to me.  Take this as an opportunity to diversify out of stocks, and into precious metals and other recession-proof tangibles such as firearms.

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!




33 Comments

  1. Peak Prosperity is having financial experts on their podcasts explaining what is going on in the financial world. If you don’t have gold in your hand-you don’t have any gold! The banks have dug themselves into a hole and will/are changing the rules to survive just as they have done in every previous crisis. JWR’s advice to get into tangibles is solid and time is growing short that the option will be available. To get the real story on the world gold market, check out “Peak Prosperity Podcast – Craig Hemke – TFMR.” An interview with Matt Taibbi explains the present issues with the banking industry. I have been following this site since January following the COVID-19 and have come to find the site to be accurate and the information spurred me to get my pandemic preps in place before the WHO admitted there was a problem. The financial insights (along with this site) have helped me prepare for the coming financial roller-coaster. Good information leads to knowledge, God leads to wisdom. We need both.

    1. From your post: “Good information leads to knowledge, God leads to wisdom. We need both.”

      Very well said. Agreed!

      Expanding on these thoughts… While protecting both liquidity and diversification of assets, we believe it’s a good idea acquire as you can the means of production.

    1. Yes, but will they allow me to exercise my Second Amendment rights by openly carrying at the same time? Ooh- that’s rich, RG !

  2. Re: “Emergency Money for the People Act”

    >>>The act would expand relief to more Americans and includes a $2,000 monthly payment to every qualifying American over the age of 16 until employment returns to pre-COVID-19 levels.<<<

    WOW! That's awesome! 24K a year for staying alive until the pre-Covid-19 employment levels are reached again! Let's just pretend that can even happen. To me it sounds more like that fake-Pope's "universal basic income" pipe dream.
    Just imagine, if you vote Dem in November all this and more [taxes] can be yours.

      1. I AM Catholic, so I can have and voice my opinion both as an American citizen and as a Catholic. If you think fake-Pope isn’t on his knees to the globalists, you are in a fantasy world.

        1. And why, of all places to go, would I leave the wonderful free state of Wyoming for those east coast centers of liberal lunacy? I have everything I need for a good life here without the crowds and nanny-state policies.

          1. There wouldn’t be a Wyoming if it was’t for the settlers from Europe establishing the original 13 colonies.

            There was no need for you to bring your anti-Pope biases into a discussion on economics and prepping

          2. BinWy, Telesilla of Argos and Charlie K., after rereading these comments multiple times, I want to share three observations on your comments.
            1. I see and feel no mean spiritedness.
            2. I see and feel no hate-filled meaningless diatribe.
            3. And lastly, maybe I am confused, but I can find no example of R. Baron involved in a discussion of economics or prepping that got hijacked.
            Peace be with you.

        2. It’s all tragic… The Pope isn’t the only one on his knees to the globalists. Many are on their knees to the globalists. Religious leaders. Business people. Politicians. People on Main Street. Some know it and bow down willingly. Others don’t know it, but are much more likely to find out soon. What happens as a new awareness settles in will write a new chapter in human history.

          Remain steady. Be safe. Stay well everyone!

          1. Another mean-spirited, off topic, Protest-ant rant while we discuss economics. You undoubtedly believe the fake news media who distort the message from the Pope (as well as the other Vicars of Christ before him).

          2. In response to The Red Baron:
            My post addressed the matter of globalism, and my own concerns that globalists influence and control the interests of more people than people realize — no matter their religious beliefs. This would include economic interests, and those will be ever more revealed for anyone closely watching. There are important intersecting points involving religious beliefs, politics, and economics or finance (2 distinct disciplines, both apply here).

            In fact, I do not rant. It’s not that I don’t understand why people do, but it’s not in my nature. I am not mean spirited, and never have been. Those who know me will attest to this as well. I am acutely aware of the Fake News Media, and am personally disgusted by it. I recognize that distortion and direct misrepresentation is a weapon that many in the media use all over the place. Lastly, I do not hijack conversations for any purpose (nor did I see evidence that a conversation had been hijacked here).

            Further, I have a deep respect for Christians and Christianity. I myself am a Believer. My Faith is steady and strong. I have been Blessed to witness many major Miracles. My own family tree is filled with both Catholic and Protestant Christians, and with Jewish people as well. I love and respect them all.

            Lastly. I would never trample on the privilege of this forum which is generously made possible by the Rawles’ family.

            Before posting remarks like this one directed toward me (or anyone else), I hope you will spend time in prayer first, and then to govern your comments in accordance with the guidance of your Faith beliefs, and the direction God Himself provides.

        3. I’ve noticed there are a lot of priests and Arch Bishops, especially from the orthodox churches who refuse to call Bergoglio, Pope Francis. They just refer to him as Bergoglio. He is not being excepted as a Pope. He appears to be, not only anti-Catholic, but anti-God and anti-Christ. I’m not calling him THE Antichrist, just one who is anti-Christ. I’m no Catholic, but the Catholics I know are generally good Christians. This Pope, this Bergoglio, is not.

          1. Welcome to the wonderful world of history. The great division between Rome and the “Orthodox” church was in 1054 A.D. There has been varying amounts of animosity/angst between them since then. No surprise that they don’t respect him. I don’t agree with his liberal Jesuit influenced point of view. However, that is not a reason to give hate-filled meaningless diatribe.

    1. BinWY, you might be wrong about the Pope’s call for a ~”universal basic income” pipe dream.~
      This Catholic site explains, that the FAKE NEWS has distorted the Pope’s ‘call’ he made in a letter.

      From: ‘catholicworldreport’ site, April 17, 2020, in part. More at site.

      ~Paschal Plea: What did Pope Francis really say about a universal basic income?~
      …”On Easter Sunday the pope issued an emotive letter addressing his “dear friends” of the World Meeting Popular Movements (WMPM), a series of annual gatherings to encourage social justice workers Francis launched about five years ago in Rome and later internationally in Santa Cruz, Bolivia.” …

      “Now, in the midst of this pandemic, I think of you in a special way and wish to express my closeness to you,” the pope wrote. “I want you to know that our Heavenly Father watches over you, values you, appreciates you, and supports you.” …

      “You have no steady income to get you through this hard time … and the lockdowns are becoming unbearable,” the pope lamented. “This may be the time to consider a universal basic wage which would acknowledge and dignify the noble, essential tasks you carry out.”

      “What to make of this? Was the pope really referring to his desire for a universal basic income (UBI) to be granted to social justice workers? Indeed, he was, as a careful reading of the letter reveals. He is referring to none other than his “dear friends”—the economically suffering in the WMPM network. He is not advocating for the poor in general whom they assist, but specifically for their charitable assistants.” …

      … “Media hijack”

      “It seems that the some in the press have completely hijacked the pope’s words. They have purposively taken Francis’s letter out of context to promote a UBI policy at national levels because “the pope said so”. Hence we read headlines that purposefully leave out the context of WMPM workers as the pope’s targeted recipients of an UBI, making it seem that it was universal appeal for all the world’s poor: “Pope Ponders Universal Basic Income as World Economy Withers” and “The pope just proposed a ‘universal basic wage.’ What does that mean for the United States?” … … (more at site)
      **************
      **************

      When reading the FAKE NEWS always remember: The FAKE NEWS is anti-human. The FAKE NEWS embraces the ideas behind the Georgia Guidestones. (Wikipedia has an article about the Georgia Guidestones; such ideas are taught in the public schools. We see those ideas trumpeted in movies and on television.)

      +Ask the Bishop of your local Diocese, if he’ll start paying more taxes to help provide money for a ‘basic income’ for everyone? +Why doesn’t the Pope invite all the poor people to his country, and pay them a wage for necessities and ‘walking around’ money?
      ****
      ****
      +Pope Francis is the real Pope. I see Pope Francis on television walking around the Vatican with his big Pope hat on his head. +He was elected by the Sacred College of Cardinals.
      **************
      **************
      Catholics should always trust The Catechism of the Catholic Church before the FAKE NEWS MEDIA. [If the Catechism is officially clarified for our benefit, the Priest will announce it from the Sanctuary.]

      1. The last time I checked, the rank-and-file Catholics were Christians just like me. Every church does it differently, and though I can’t agree with their ways, I respect them as Christians. I too cannot abide the current Pope, but I respected Pope John Paul II enormously. Besides this IS a prepping/survival website and we should not he fighting over religious questions here, IMO.

  3. Tangibles? Absolutely! Spend your money if you have any to spend on food,water,medicine,
    and security( modern firearms). There is nothing that is recession proof.
    Leave the antiques cased up under grandma’s bed where they belong.

  4. Here we go… We are soon to enter the next phase of this journey which will include attempts to recover financial damages from China. We anticipate that the real face of the CCP will be revealed across the unfolding of this…

    China Outraged After Largest German Newspaper Accuses Beijing Of “Exporting” Coronavirus Pandemic, Demands €149 Billion In Damages

    https://www.zerohedge.com/economics/china-outraged-after-largest-german-newspaper-accuses-beijing-starting-coronavirus

      1. I agree with you. France and England’s obsession with large WWI war reparations from Germany — over protests from Wilson and the U.S. — lead to the rise of Hitler. Of course, the depression, inflation and dissatisfaction with the Kaiser all came into play.

  5. On “Our Economic Future”, lots of good advice. I think he is slightly overly optimistic and it’s already too late to sell any city properties and expect to get a decent sales price you could have gotten three months ago. (But still excellent advice, get out while you can.) The housing boom is going to take a huge hit as a result of the corona shutdown of the economy. All the layoffs and unemployment will have a domino effect of driving down housing prices as people cannot make mortgage payments or buy their first house, especially as nervous lenders are tightening lending requirements. With houses flooding the market, prices will be driven down and there are only a few areas of the country that will escape housing price deflation.

    Which brings up another interesting point. IMO in these times it’s a very bad idea to pay down your mortgage, meaning, paying extra on it every month. Paying it off is always an excellent idea and should be done as quickly as possible. When we pay it down however, we’re still always three payments away from being tossed out into the street and losing all our equity. Instead of paying it down, have the discipline to take the extra money every month and stick it in the bank or invest it if you’re good at that. Then when you have enough saved to completely pay off your mortgage, cash it all in and pay it off in full. You’ll pay a little extra in mortgage interest that way, but in these uncertain times, you’ll have the guarantee that if you end up losing your house, you won’t lose everything. Here’s an example: Everybody who spent $25,000 paying down their mortgage, and lost their jobs this month, will lose that $25,000 of extra equity when the bank forecloses and sells their house which is worth a whole lot less than it was at the end of 2019. Had they bought precious metals with that $25k instead, or coronavirus stocks, or put the money in the bank, they’d at least have that money in hand, and have the option of using it to make mortgage payments instead of having the bank foreclose.

    Paying down mortgage was a great strategy in our parents’ and grandparents’ lifetimes, but ceased being a good idea about the time the dot.com bubble burst. This entire decade is going to very uncertain. What we’ve seen so far is just a slight taste of what’s in store. Plan your finances wisely.

    1. Good advice. But stay flexible with that cash. When hyperinflation=dollar devaluation kicks in, then would be a time to invest in real estate hedge.

      Meanwhile, saving cash is excellent idea I think to be ready to get bargain-rate tangibles when they hit the market.

      Like chickens, for example. The whole western world seems to be buying chickens. I’m not. But now I am making plans to build a good chicken house.

      When folks tire of their chickens next fall and winter, my Chicken Bank will be ready for donations of cluckers. Me loves free stuff!!

  6. Warning: Stockpiling is now a dirty word. I saw signs in a store yesterday urging people to only buy what they need without stockpiling. How long before those of us who had the foresight to stockpile and prepare will be demonized?

    1. Uhhh… We already HAVE been demonized… for having brains and planing ahead… I believe the term used was “hoarder.” OK; I’m a hoarder. I’m also xenophobic, homophobic, racist, deplorable… …Oooch-ouch…

      Face it, kids; you’re in line for toilet paper… and milk… and… I’m not… Have fun…

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