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 Tungsten. (See both the Commodities and Tangibles Investing sections.)
Precious Metals:
Arkadiusz Sieroń: Palladium Price Hits Record High. JWR’s Comments: I’ve been mentioning the platinum group metals off and on in SurvivalBlog since 2007. One mention of palladium in the blog was back in February of 2009, when palladium contracts were just $219 an ounce, and meanwhile platinum was at $1,091 an ounce! My current advice is to avoid getting sucked into the current hype about palladium. Don’t buy at the top. Platinum–which is presently priced below gold–is the real bargain, and far more likely to double in the next few years.
Economy & Finance:
At the great Zero Hedge site: NYC Dangerously Close To Bankruptcy, Experts Warn. Here is a quote:
“Financial analysts warn tax burdened businesses and individuals would flee in droves, and public spending would have to surge to record levels, which would set off a fiscal nuclear bomb.
Long-term debt is about $81,100 per household, and Mayor de Blasio will spend as much as $3 billion more in the new budget for a total of $89.2 billion.
Analysts said Mayor de Blasio had detailed $750 million in savings for the preliminary fiscal 2020 budget, but that amount won’t be enough to create a soft bottom during the next recession. Gov. Andrew Cuomo’s preliminary budget has $600 million in cuts for the city in 2020.
Spending is up 32% since Mayor de Blasio took office, the analysts told the Post that more spending cuts would be needed to get the fiscal house in order to avert bankruptcy during the next recession.
NYC’s long-term pension obligations have also expanded to levels that may not be manageable.
New York state is ranked No. 1 in the nation for the highest taxes, and the top 1% of NYC earners pay some 50% of income tax revenue, per the Post. If businesses and people continue to flee to lower tax states while spending continues to rise, it could lead to financial hardships for the city, analysts warn.”