Sunday, January 26, 2014

10 Warning Signs That Something Evil This Way Comes

Finding useful sources for news can be challenging. For example, over the past week the leading news story in the U.S. has been about Justin Bieber. I find that a sad and depressing commentary on our country. That's why looking at news sources outside of the U.S. can be helpful for understanding what is happening in the world. If you get all of your news from the usual sources, here are a few news items that you probably don't know about. Ignore these stories (and others) in favor of the latest drivel offered by our U.S. media and you miss the big picture.

  1. This week the 30-day/4-week T-bills were auctioned off at a 0% rate. After the auction, the rate went negative. Negative short term rates were last seen in 2008, right before the Lehman/AIG/Goldman collapse occurred. Negative rates only occur when very big investors are concerned about the return of their money rather than the return on their money. Something is spooking big money, possibly a massive risk of derivatives default just like in 2008.
  2. The value of the Argentine Peso and Venezuelan Bolivar have collapsed leading to economic chaos, violence and looting in those countries. This is what eventually happens when you relentlessly devalue your currency.
  3. The economic breakdown in Argentina and Venezuela appears to be spilling over into Brazil as their stock market crashes.
  4. Political rioting in the Ukraine has that country coming apart at the seams.
  5. It appears that a bank run is underway in China as their credit bubble collapses and the manufacturing sector contracts.
  6. Unemployment rates in France, Italy, and Spain have all hit new all-time record highs, and the value of the Turkish Lira is collapsing.
  7. The Baltic Dry Index, a leading indicator of international trade, has posted the largest decline ever over the past two weeks.
  8. Chipmaker Intel has announced it will eliminate 5,000 jobs over the upcoming year. Sears, JC Penny, and Target are planning significant layoffs, hiring freezes, and store closings.
  9. The U.S. stock markets have fallen and it is becoming increasingly likely that the peak of the markets is behind us.
  10. The U.S. national debt (not including 50+ trillion in unfunded entitlement liabilities) currently stands at $17.34 trillion and the current debt ceiling will be reached in early February. It was originally thought that the next debate in Congress over the debt ceiling could have been pushed into May. (Less than six years ago, presidential candidate Obama correctly called the $9 trillion national debt accumulated under the Bush Administration "unpatriotic".)

There are many other items, but 10 is enough for this post. A global economic storm is approaching while our media and our citizens are obsessed with celebrity scandals and reality TV.


  1. It will be interesting if this turns into another 2007/2008!

  2. I think the Fed and other central banks have delayed the inevitable through massive QE programs. You can only ignore the math for so long, and the longer you delay, the more severe the outcome.

  3. Is it time to invest in Liquor and Beer? Or, maybe open a Pot Shop in Colorado
    People drink more during recessions and depressions, ya know. Maybe Marx was right...
    I feel sorry for our kids, shouldering all the boomers asses through their Golden Years.\
    Box Canyon Mark

  4. It's my understanding that the weed business has always been and will always be a profitable endeavor. The next revolution won't be fought between liberals and conservatives. It will be fought between the young and the old.

  5. Yeah, but what about them Kardashians!!! Can't get enough of them especially Kim and Kanye or Kimkan as I like to think of them.

    I look at it this way, I will be dead soon so as long as I have that barrel of doubloons who cares. As to the young and old battle, as long as I have my guns, if only I could find the bullets, then well...

    Oh, and what about peak water? That will be a battle between the fish and us.

  6. That's why I'm long fishing poles and short fish. I'm also going long on cash and I'm shorting the Kardashians. And we all know that when the young folk rise up, the first old guy they'll go after is Jim.

  7. I'd be tickled pink if all we get is a repeat of 07/08


  8. An event similar to 2007/2008 would be a gift. Unfortunately, each successive bubble and burst is getting more severe. This time, the rubber band has been stretched further than ever before. The snapback should be larger as well.

  9. When the financial collapse occurs, I will be in a bad situation. Following the 2007 financial meltdown, I had determined that the life as a full time RVer was a great way to live to address any future financial disasters. Did I listen to my instincts. Nope. I settled down in a home without wheels. Oh well. I will adapt.

    1. I don't think things will get that bad. There will be trillions of dollars of net worth wiped out, but the probability of widespread violence and chaos is small. If things did get that bad, you might actually be better off in Ol Yeller than out there on the lawless roads in the Wagon.