Peak Prosperity

DIY Fly Trap

Wed, 22 May 2013 12:17:48 -0400

An easy project to help reduce those pesky flies around the house, in the backyard, and around the chicken coop.

http://www.fresh-eggs-daily.com/2012/06/got-flies-heres-idea-for-diy-fly.html

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Daily Digest 5/22 - Hard Times In Vallejo, Class Of 2013 Has Largest Debt Ever

Wed, 22 May 2013 10:39:00 -0400

Bankia compensation qualms signal loss of faith in Spain's banks
IMF says Washington cutting budget deficits too quickly
Cleveland will double red-light cameras
China Starts Unit to Diversify Reserves From U.S. Debt, WSJ Says
In post-bankruptcy Vallejo, services few, times hard
Class of 2013 has largest debt ever
Officials tinker with lights, produce more ticket fines (Florida)
Chicago-area pension funding gap jumps to $32 billion: report
ICE Joins CME Warning of Splits in Global Derivatives Rules ($633 trillion)

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Protect Your Wealth in Advance of the Bubble's Bursting

Tue, 21 May 2013 19:10:16 -0400

Executive Summary

Corporate junk bonds: All-time highs
Equities: All-time highs in Germany and U.S.
Other equities: Spiking upwards (Japan, Greece, Australia)
Margin Debt: Second highest on record
Excuses: Consistent with bubble territory
Timing: When reality will likely express itself

If you have not yet read Part I: Four Signs That We're Back in Dangerous Bubble Territory, available free to all readers, please click here to read it first.

In Part I, we discussed four signs that we are in bubble territory – in both stocks and bonds – plus all of the usual rationalizations that accompany bubbles. In truth, there are many more signs which we'll discuss further here, and I want to go deeper into the data exploring the warning signs in the equity and bond markets.

I want to spend time cataloging and explaining my reasoning because when bubbles burst, it's traumatic for everyone, but especially those that aren't prepared.

Further, these bubbles are so large that it's useful to employ historical analogues to weigh them against and parse for clues as to just how bad developments could get.

The Big Picture

What we do at Peak Prosperity is track the big picture. We look at the macro risks and trends, and try to figure out what's coming next. Over the long haul. we have very little doubt that several decades of debt accumulation partnered with structurally higher oil prices will result in anything other than reduced standards of living for most people.

And that’s if everything goes smoothly.

At the other end of the spectrum lies the potential for currency, political, and fiscal crises, the likes of which have never been seen before, given the global nature of the situation.

Leaving oil prices aside for the moment, in purely economic terms, living beyond one’s means now necessitates living below one’s means later on. Whether that period of negative adjustment is the same length and depth, shorter and deeper, or longer and shallower is open to question. But I'm leaning towards ‘shorter and deeper’ because history shows that bubbles tend to burst more rapidly than they form.

That is, we could view this as a bubble in financial assets, particularly credit (debt), but we could just as easily view it as a bubble in living standards. We overdid things and now it's just a question of figuring out who is going to eat the losses. Historically, that answer has always been 'the little people,' but today we have dropped such disparaging terms in favor of the more politically palatable 'taxpayers.'

To understand the current predicament, the most important chart to look at is the ratio of total national debt to GDP (debt-to-income)...

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Four Signs That We're Back in Dangerous Bubble Territory

Tue, 21 May 2013 19:09:54 -0400

As the global equity and bond markets grind ever higher, abundant signs exist that we are once again living through an asset bubble – or rather a whole series of bubbles in a variety of markets. This makes this period quite interesting, but also quite dangerous.

With equity and bond markets at or near all-time record highs, with all financial assets consistently shrugging off bad – or worse – news as the riskiest of assets continue to find consistent upward bids, we find ourselves in familiar and bubbly territory.

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DIY Solar Foundry

Tue, 21 May 2013 18:22:29 -0400

Learn how to build a solar foundry and take full advantage of the sun's power.

http://www.treehugger.com/gadgets/diy-solar-foundry-reaches-temperatures-3800-degrees-farenheit.html

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Preparing for Economic Collapse

Tue, 21 May 2013 15:14:21 -0400

We bring back to the forefront an article from contributor Fernando "FerFAL" Aguirre. With the many new sources of turbulence in the financial system and many new unknown's of how our predicaments will play out, we can always look to the past for guidance. The following is an account from a long time Peak Prosperity member who has lived through economic collapse. FerFAL experienced the hyperinflationary destruction of Argentina's economy in 2001 and continues to blog about his experiences and observations of its lingering aftermath. His website and his book Surviving the Economic Collapse offer windows into the probable outcomes to expect during a collapsing economy. Note: Our site's What Should I Do? Guide offers specific guidance relevant to a number of the steps FerFAL recommends below. Review, Learn, and Get Prepared. Better a year early than a day late.

“How can I prepare for an economic collapse?” is one of the most common questions I get. It usually takes me a second to start to explain how complex such a question is. It’s like asking an auto mechanic, “Say, how do you build a car?” or asking a computer engineer, “What’s all that stuff inside my laptop?”

I do have some first-hand experience in this matter, though. The economy in my country, Argentina, has gone through various crises, but none as large as when the economy collapsed in 2001 after a decade of apparent prosperity. The currency devaluated, and Argentina defaulted on its USD$132 billion debt, the largest default ever. The middle class took to the streets after bank accounts were frozen, and the president was forced to resign, escaping the presidential building in a helicopter.

What I’ll do is, provide five quick foundational steps, based on what I know, for you to follow so as to be better prepared if something like what happened in my country ever happens in yours.

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Daily Digest 5/21 - Tornado Strikes OK Suburbs, How Reliable is the IEA’s Forecast?

Tue, 21 May 2013 10:57:52 -0400

Glimpsing The Hereafter 2
Gold & Silver Price Subject To Greediness Of Traders
Welcome To The Real Space Age
Japan’s New Optimism Has Name: Abenomics
Energy and Economic Growth: Interview with Mark Thoma
How Reliable is the IEA’s Oil Market Forecast?
Indication of anomalous heat energy production in a reactor device containing hydrogen loaded nickel powder
Tornado Strikes Oklahoma City Suburbs

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Are the Predominant Macro Trends About to Reverse?

Mon, 20 May 2013 16:29:24 -0400

I felt a great disturbance in the Force

-- Obi-Wan Kenobi

If you've been watching the precious metals closely – what a day! Both gold and silver plummeted in overnight trading. And by "plummet," I mean the gut-wrenching vertically-straight-down kind of free-fall (silver was down nearly 10% over a matter of minutes). Then, after a few hours of partial recovery and stabilizing, the precious metals went parabolic in the up direction.

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A Glimpse Into Food Rights

Mon, 20 May 2013 13:54:45 -0400

The trial of Vernon Hershberger, an Amish dairy farmer begins today. He is on trial for selling raw milk to his private milk club members. Take note that the outcome of this trial will have far reaching implications for many of us and those who seek alternatives in what we eat and who we get our food from.

http://modernfarmer.com/2013/05/4-questions-raised-by-the-amish-raw-milk-trial/

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Daily Digest 5/20 - Market Boom Or Bubble, Fertile Plains Turn to Dust In TX

Mon, 20 May 2013 12:02:13 -0400

Canada Jobs Grant: Harper Government Buying Ads To Promote Program That Doesn't Yet Exist
Motive, Means, & Opportunity in the Gold Market
The Spreading Consequences Of Syria's Civil War
Boom Or Bubble?
Natural Gas – The “Slow Process that's Gathering Speed”
Lines In The Sand
Tornadoes Level Homes in Okla., Killing One Person
Wells Dry, Fertile Plains Turn to Dust

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Daily Digest 5/19 - The Health Toll Of Immigration, Rebuilding The Coastline At What Cost?

Sun, 19 May 2013 12:12:43 -0400

Lew asks Congress for debt increase, says it’s 'not open to debate'
Cities: How crowded life is changing us
Gold In 2013 – Too Many Mysteries Remain Inexplicable
So Far, the Battery Charger Is Working in Japan
The Health Toll Of Immigration
Wells Fargo Rises to Record Close as Home Market Rebounds
Rebuilding The Coastline, But At What Cost?

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Rep. Ken Ivory & Dan Griffiths: Creating a Financial Emergency Plan for States

Sun, 19 May 2013 11:06:08 -0400

In a country where insolvent states increasingly compete for Federal funds, Utah is bucking the trend. And in the process, it's showing the type of leadership this nation will need more of to deal with its national economic plight.

A recent slew of new legislation has been passed – collectively known as the Financial Ready Utah (FRU) initiative – to assess the state's greatest financial vulnerabilities and to identify the most promising programs for addressing them at the state, community, and household levels. As a result of its earthquake-prone geology, Utah has developed a robust statewide disaster-response system. The FRU initiative prudently asks: Shouldn't we also have a financial-earthquake preparedness program in case of another 2008-style (or worse) economic shock, which the math indicates is more than likely?

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Daily Digest 5/18 - U.S. Seizes Bitcoin Accounts, Mountain Of Waste Grows In Detroit

Sat, 18 May 2013 11:01:32 -0400

Jim Rogers on Gold: Continues to Have a Long Overdue Correction
U.S. authorities seize accounts of major Bitcoin operator
US seizes Bitcoin operator accounts
Paper Gold, Metal Gold - When Worlds Diverge
How Student Loans Became a $120 Billion Government Bonanza
Gold & Silver Price – The True Story Is All About Time
A Black Mound of Canadian Oil Waste Is Rising Over Detroit

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How to Make a Bee Skep

Fri, 17 May 2013 19:00:39 -0400

Learn about this traditional style of natural bee hive and how to construct one.

http://www.rootsimple.com/2013/05/how-to-make-a-bee-skep/

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The S&P 500 Is Now a Gambler's Paradise With 76.9% Up Days in May So Far

Fri, 17 May 2013 12:12:57 -0400

Everyone knows the odds of winning in a casino are worse than 50% (often much worse depending on the game played). So who wouldn't rush to a casino, where instead, the odds were overwhelmingly in the gambler's favor?

That's the promise of today's stock market, which has been experiencing an aberrantly high percentage of up days all year. Toss your money into the market, and on any given day, you're much likelier to make money than not.

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Daily Digest 5/17 - Why Gold Won't Stay Down, The Beneficial Bacteria In Our Guts

Fri, 17 May 2013 10:00:11 -0400

Paper Silver Price Retesting April 2013 Lows: What about the Physical Price?
Why Gold Won't Stay Down
DSM-5: Mental Health Professionals, Critics Face Off Over Upcoming Psychiatric Manual
11 charts that show Canada’s economy is entering a world of hurt
Venezuela Runs Out Of Toilet Paper
How Facebook and Brooklyn Killed America's Obsession With Cars
Some Of My Best Friends Are Germs
The Great Salt Debate: So Bad?

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Dehydrating Food Without Electricity

Thu, 16 May 2013 13:22:57 -0400

A great summary and loads of information about how to dehydrate and store foods without power.

http://theprepperproject.com/dehydrating-food-without-electricity/

Also check out the WSID article on building a solar dehydrator for use harmonyguy: http://www.peakprosperity.com/wsidblog/80527/building-solar-dehydrator

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Daily Digest 5/16 - Farms Feeling The Pinch, The Bank Shakedown That Could Ruin Your Life

Thu, 16 May 2013 11:38:58 -0400

Opinion: Sell financial advice or products, not both
French recession: Farms feeling the pinch
How to skip lines at Disney: Hire a disabled ‘escort’ on the black market — only $1,040 a day
Gold & What I Know For Certain
Gold Daily and Silver Weekly Charts - South Africa Imports $1 Billion In Gold Bullion From NYC?
Timelapse
William Kaye: Founder, Vice Chairman and Senior Managing Director of the Pacific Alliance Group of Companie
A New Chapter In Currency Wars – Russia Joins The Game
Richard Cordray and the CFPB Are Monitoring Your Banking Habits
The Vicious New Bank Shakedown That Could Seriously Ruin Your Life
Student Debt and the Crushing of the American Dream
Brits Are Now Poorer Than The French, Swiss, Belgians, Swedes, Austrians, Aussies And Canadians
Six-figure salaries no draw as young workers shun Canada’s oil and gas sector for ‘sexier’ industries
Goldman Sachs hires particle physicist from the Large Hadron Collider
Produce Industry’s Food Safety Push Takes Toll on the Environment
Which way will the Alberta oil pipeline go after Christy Clark’s win?
Commander Hadfield Shows Us What Science Communication Could Be. Visually.
Maps show impact of overcutting old-growth forests, conservation groups say

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Utah Is Setting an Important Example

Thu, 16 May 2013 11:01:05 -0400

Since I started delivering this message, I've held a vision of the day when it instead elicits knowing nods because its truths have become self-evident. My proudest day will be when there's no more need to communicate the core ideas in the Crash Course because they'll already be common knowledge.

I cannot wait for the day when, literally, I'll have talked myself out of a job.

Well, we're one very important step closer to that day.

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Daily Digest 5/15 - Boomer Retirement Crunch Begins, The End Of Bitcoin?

Wed, 15 May 2013 09:48:39 -0400

Small euro coins may be dropped—EU
European Leaders Grapple With Youth Unemployment
Bad debts at Italian banks surpass 130 bln euros
British families are the deepest in debt
Japan Bonds Slide 3rd Day
Cal State students face yet another fee – for graduation
The boomer retirement crunch begins
Banks Rush to Ease Supply of Money
Florida quietly shortened yellow light standards & lengths, resulting in more red light camera tickets for you
Strategist predicts end of Bitcoin

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