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 further examine the accelerating exodus from the big cities that is creating demand for suburban and rural real estate. (See the Tangibles Investing section.)
Precious Metals:
Where Will The World’s Next Giant Gold Discovery Be Made?
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M.B. sent this news: Two gold nuggets worth $350,000 found in Australia
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COMEX EFP (Ab)Use Has Collapsed
Economy & Finance:
At Investment Watch: Stagflate, Tax & Lie About Economic Data: US Dept Of Labor Changes Jobless Claims Methodology
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Deloitte: Weekly global economic update. Here is an excerpt:
“Just prior to the current crisis, unemployment was low in most advanced economies. Working-age populations were starting to decline. New technologies offered the promise that we could produce more with less labor, enhancing living standards without too much displacement of workers. Then came COVID-19. The need for social distancing led us to work, shop, and be entertained remotely using technology. It allowed many of us to produce more with fewer inputs. It also led to the demise of countless small and relatively low-productivity businesses, with their market share likely to be captured by larger more productive enterprises. In part, these changes are likely to persist beyond the virus—with both positive and negative consequences.
Consider working from home. Prior to the crisis, the average American spent 225 hours per year traveling to and from work. Millions traveled by air frequently, including most of us, to attend meetings. The shift to remote work means that tasks can be accomplished with fewer resources and time expended. This is a productivity improvement and implies producing the same or greater output at much lower cost, which is potentially beneficial to everyone. Yet society will still pay a price. Less demand for office space, air travel, hotels, restaurants, and public transportation will mean that countless low-wage workers will be displaced. Existing real estate will lose value, companies will fail, asset holders will lose wealth, and social problems could explode.”
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The Second Wave of Layoffs is Here, Now Hitting Well-Paid Jobs