Economics and Investing:

My friend “X” in Japan pointed out an article that I overlooked last month: Confiscated US Bonds Were Headed For Swiss Free Port. OBTW, living near a “free port” (as described in the article) might have its advantages in a protracted economic depression. Commerce will slow globally, but port zones will probably continue to have profitable opportunities.

Several SurvivalBloggers sent this: June budget gap $94.32 billion, record for June

Eight readers mentioned this Wall Street Journal article: The Economy Is Even Worse Than You Think; The average length of unemployment is higher than it’s been since government began tracking the data in 1948. As is typical for a liberal eastern establishment writer, Mort Zuckerman gathers good data, but sadly reaches pro-statist conclusions. Zuckerman asks: “So what kind of second-act stimulus should we look for? Something that might have a real multiplier effect, not a congressional wish list of pet programs. It is critical that the Obama administration not play politics with the issue. The time to get ready for a serious infrastructure program is now. It’s a shame Washington didn’t get it right the first time.” The solution to the unemployment problem is not wealth-transfer “stimulus”, “bailouts”, and assorted job creation “programs” . Instead, we need genuine free enterprise, a sound currency, honest banking, and minimal taxation to truly stimulate the economy. Instead of “programs”, we need government to get out of the way and let bad debt be unwound, and allow the economic engine recover.

Mort Zuckerman also wrote this piece for US News & World Reports: Nine Reasons the Economy is Not Getting Better. (Thanks to GG for the link.)

Items from The Economatrix:

Financials Pull Stocks Higher

China Takes Steps to Break Sway of Mighty Greenback

Boomers: Winter is Coming

The Doctrine of Preemptive Bailouts and the Biggest Bailout You Haven’t Heard About. “…this is a disturbing new development in our bailout nation since this is one of the first times that the U.S. Treasury will try to preemptively deal with a financial problem.”

Geithner Says Global Economy to Suffer Setbacks During “Recovery”


Debt Deflation: The Reason Why Government Economic Stimulus is Doomed to Fail

Momentum Builds Toward Possible End of Federal Reserve

The Shamans Economic Solution: Why Failure is Imminent

What’s the Real CPI Inflation Rate?