The 19 Countries Most Likely To Default: Ireland Surges Higher

Ireland's bank bailout and the failure of its austerity budget has been the big sovereign debt story since September.

This country's place on CMA Datavision's cumulative probability of default rankings has spiked as from 14th place in July, to 5th place by the end of Q3.

http://www.businessinsider.com/19-countries-most-likely-to-default-2010-10

27 Signs That The Standard Of Living For America’s Middle Class Is Dropping Like A Rock

Very Interesting

Meanwhile, the U.S. economy is being rapidly assimilated into the emerging one world economy.

http://beforeitsnews.com/story/205/391/27_Signs_That_The_Standard_Of_Living_For_Americas_Middle_Class_Is_Dropping_Like_A_Rock.html

Wal-Mart ends profit sharing with employees

Wal-Mart Stores Inc., the nation's largest private employer, plans to end automatic profit-sharing contributions for its employees in a revamp of its benefits package that it says will give workers more chance to share in its financial success.

The discounter will replace profit-sharing starting in February with retirement plan contributions of up to 6 percent of pay -- as long as workers sign up and contribute an equal amount, Wal-Mart said in a memo it provided The Associated Press late Friday.

http://finance.yahoo.com/news/WalMart-ends-profit-sharing-apf-3150722021.html?x=0

Three Horrifying Facts About the US Debt “Situation

This sums it up...financial death spiral. No way out...

http://www.zerohedge.com/article/three-horrifying-facts-about-us-debt-%E2%80%9Csituation%E2%80%9D

Doug Casey on the Violence of the Storm, the Destruction of the Middle Class and the Coming Gold Standard

http://www.thedailybell.com/1436/Doug-Casey-on-the-Violence-of-the-Storm-the-Destruction-of-the-Middle-Class-and-the-Coming-Gold-Standard.html?bcsi_scan_24DE46460B4E2EF0=Qe4DXLzF2Bhsxfu0B8FN9Fy2ArADAAAAXF99AQ==&bcsi_scan_filename=Doug-Casey-on-the-Violence-of-the-Storm-the-Destruction-of-the-Middle-Class-and-the-Coming-Gold-Standard.html

Far More Derivative Exposure Today Than Two Years Ago

Harold Bradley, chief investment officer for the Kauffman Foundation, discusses the increase in derivatives held by commercial banks with CNBC's Maria Bartiromo and Herb Greenberg.

http://www.realclearpolitics.com/video/2010/10/06/kauffman_foundations_harold_bradley_risks_from_derivatives_look_terrifying.html

Investors see silver lining in economic gloom

Silver prices have risen 31pc in 2010 to a 30-year high, outperforming gold, equities and most base metals. On Tuesday, the gold-silver ratio dropped below 60 for the first time in 11 months.

The ratio varies wildly. In 1970, it was about 20 and it peaked at just under 100 in 1991. The average is around about 40 – and that is the key to any silver bull's argument. Historically, it appears that silver is undervalued in relation to gold, they argue.

In 2010, the ratio has been as high as 72, recorded in February, and is now just below 60. Many believe it could have further to fall.

http://www.telegraph.co.uk/finance/markets/8039595/Investors-see-silver-lining-in-economic-gloom.html

Base metals are more precious by the week

Why are tin, copper, lead, zinc, aluminium and nickel so expensive at the moment and is the general base metals rally sustainable?

http://www.telegraph.co.uk/finance/markets/marketreport/8053986/Base-metals-are-more-precious-by-the-week.html

Gold coins and quantitative easing

Governments keep printing more money, hoping to ignite an economic barbeque. But cheap cash – also known as quantitative easing – burns more like a highway flare. You want slow-burning, steady value? That's gold, not greenbacks.

http://www.csmonitor.com/Business/The-Daily-Reckoning/2010/1011/Gold-coins-and-quantitative-easing

Poor Crops, Soaring Demand, Currency Wars: A Recipe for Food Shortages

Prices for agricultural commodities spiked so much on Oct. 8 that they triggered daily movement limits on the Chicago exchange. Options markets saw prices for commodities like corn soar more than 13% during the day following reports of supply shortages around the world.

Commodity-oriented exchange-traded funds like the PowerShares DB Agriculture (DBA) leaped as well. The ETF surged almost 10% over the previous week, with more than 6% of the gains registered on Friday alone.

http://www.dailyfinance.com/story/poor-crops-soaring-demand-currency-wars-a-recipe-for-food-sho/19667693/

Finance Chiefs Fail to Resolve Currency Spat as G-20 Splits

Leaders of the world economy failed to narrow differences over currencies as they turned to the International Monetary Fund to calm frictions that are already sparking protectionism.

Exchange rates dominated the IMF’s annual meeting in Washington on concern that officials are relying on cheaper currencies to aid growth, risking retaliatory devaluations and trade barriers. China was accused of undervaluing the yuan, while low interest rates in the U.S. and other rich nations were blamed for flooding emerging markets with capital.

http://www.bloomberg.com/news/2010-10-10/global-finance-chiefs-fail-to-resolve-exchange-rate-spat-as-g-20-splinters.html

Fed Undaunted by Uncertain Prospects for Money Printing

The U.S. Federal Reserve runs the risk of diminishing returns from its next round of money printing to amplify the subdued economic recovery, but that won't stop it from trying.

Minutes due Tuesday from the Fed's most recent policy-setting meeting may reflect some divisions among officials over whether to launch another round of asset purchases, known as quantitative easing.

http://www.cnbc.com/id/39604937

Dollar set for sharp decline, Goldman forecasts

The dollar will embark on a sharp decline over the next 12 months, Goldman Sachs forecast on Wednesday, as policy makers in Washington look poised to press the trigger on another round of printing money.

http://www.telegraph.co.uk/finance/currency/8047468/Dollar-set-for-sharp-decline-Goldman-forecasts.html

The Top-10 Budget-Deficit Time Bombs

If you've read the press releases being put out by Washington these days, you'd be convinced that the big bad Bush-caused recession of 2008-2009 is now safely beyond us.

Tain't so.

If fact, the hoary mess which began under the last days of Bush & Democrats guarantees that Obama & Democrats will continue to take us down the rat-hole of national bankruptcy.

http://www.humanevents.com/article.php?id=35666

U. S. Treasury Department report to Congress: U.S debt to rise to $19.6 trillion by 2015

GREAT SITE

http://www.federalbudget.com/

Lear Capital: Origin of Gold vs. Silver Ratio

Discussed more and more, as silver prices rally, is the ratio in value of silver to gold. Currently sitting at 60 ounces silver being equal to 1 ounce gold, some say that ratio is headed much lower. Why the optimism? Perhaps history explains.

http://blog.learcapital.com/blog/lear-capital/0/0/lear-capital-origin-of-gold-vs-silver-ratio

David Morgan: Silver Overdone Now, But Headed Higher in 2011

Gold's record highs might steal all the headlines, but savvy investors know the real story lies in silver, where futures for December delivery topped $22/oz earlier this week—their highest levels in 30 years.

http://seekingalpha.com/article/229059-david-morgan-silver-overdone-now-but-headed-higher-in-2011?source=yahoo

Middle Class Slams Brakes on Spending

Middle-class Americans made their deepest spending cuts in more than two decades, slashing spending on such discretionary items as restaurant meals and alcohol during the recession.

Households in the middle fifth of the population sliced their average annual spending to $41,150 in 2009, the Labor Department said Tuesday in its annual spending breakdown. That was down 3.1% from 2007 and 3.5% from 2008, the steepest one-year drop since records began in 1984. The drop came even as those households' after-tax income remained relatively stable over the two years, at an average $45,199

http://online.wsj.com/article/SB10001424052748703298504575534341401915382.html?mod=WSJ_hpp_MIDDLETopStories

Soaring prices threaten new food crisis

Fears of a global food crisis swept the world’s commodity markets as prices for staples such as corn, rice and wheat spiralled after the US government warned of “dramatically” lower supplies.

An especially hot summer in the US, droughts in countries including Russia and Brazil and heavy rain in Canada and Europe have hit many grain and oilseed crops this year. This has raising concern of a severe squeeze in food supplies and a repeat of the 2007-08 food crisis.

EDITOR’S CHOICE
Lex: Commodities: self-defeating rally? - Oct-08In depth: Global food crisis - Oct-08Wheat and corn rise as Ukraine limits exports - Oct-07Russia put to the test by grain shortage - Oct-04Japan faces food pressure from China - Oct-04beyondbrics: Food file - Oct-05The US Department of Agriculture, in a closely watched report, predicted that the country’s stocks of corn would halve to their lowest levels in 14 years.

http://www.ft.com/cms/s/0/12b06cee-d300-11df-9ae9-00144feabdc0.html

Dollar Falls Below 82 Yen for First Time Since 1995

The greenback was headed for a fourth weekly decline against the euro in the longest stretch of losses since December 2008 as investors speculated the Federal Reserve will debase the currency by stepping up purchases of government debt. The yen and Swiss franc rose today versus most major counterparts as investors sought easily traded alternatives to the dollar.

http://www.bloomberg.com/news/2010-10-08/dollar-falls-below-82-yen-for-first-time-since-1995-on-u-s-payroll-report.html