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Image | The Periphery is Failing
The Periphery is Failing
by Chris Martenson

For years we've preached the From the Outside In principle of markets: When trouble starts, it nearly always does so out in the weaker periphery before creeping towards the core.

We saw this in the run-up to the housing bubble collapse, as sub-prime mortgages gave way before prime loans, and in Europe, as smaller economies like Greece, Ireland, and Cyprus have fallen first and hardest (so far).  We see this today in accelerating food stamp use among poorer U.S. households.  In each case, the weaker economic parties give way first before being followed, over time, by the stronger ones.

Using this framework, we can often get several weeks to several months of advance notice before trouble erupts in the next ring closer to the center.

Which makes today notable, as we're receiving a number of new warning signs.  The periphery is giving way.

The Periphery is Failing
 by Chris Martenson

For years we've preached the From the Outside In principle of markets: When trouble starts, it nearly always does so out in the weaker periphery before creeping towards the core.

We saw this in the run-up to the housing bubble collapse, as sub-prime mortgages gave way before prime loans, and in Europe, as smaller economies like Greece, Ireland, and Cyprus have fallen first and hardest (so far).  We see this today in accelerating food stamp use among poorer U.S. households.  In each case, the weaker economic parties give way first before being followed, over time, by the stronger ones.

Using this framework, we can often get several weeks to several months of advance notice before trouble erupts in the next ring closer to the center.

Which makes today notable, as we're receiving a number of new warning signs.  The periphery is giving way.

Image | New Harbor: Now is the Time for Discipline in Protecting Wealth
New Harbor: Now is the Time for Discipline in Protecting Wealth
by Chris Martenson

The stock market has been on an upward streak for the past two years, with the Dow and S&P near their all-time highs. Recently, though, they've shown signs of toppiness. And certainly, the macroeconomic risks loom larger than ever. Where are equity prices most likely to go from here?

Interest rates on bonds have nearly doubled off of their historic lows from a year ago. That puts downward pressure on bond market prices, as well as a tremendous number of other important asset classes, like housing. Where are interest rates most likely to move next?

For these (and other) reasons, the current environment is extremely challenging for investors.
New Harbor: Now is the Time for Discipline in Protecting Wealth
 by Chris Martenson

The stock market has been on an upward streak for the past two years, with the Dow and S&P near their all-time highs. Recently, though, they've shown signs of toppiness. And certainly, the macroeconomic risks loom larger than ever. Where are equity prices most likely to go from here?

Interest rates on bonds have nearly doubled off of their historic lows from a year ago. That puts downward pressure on bond market prices, as well as a tremendous number of other important asset classes, like housing. Where are interest rates most likely to move next?

For these (and other) reasons, the current environment is extremely challenging for investors.
Image | Preparing the Unprepared
Preparing the Unprepared
by JW

A really simple and straightforward list of ways to help get the unprepared moving in the right direction.  Sometimes we all need a little help to do the next thing and take another step forward. 

http://prephappy.com/prepping/preparing-the-unprepared-5-ways-to-help-your-loved-ones-move-towards-preparedness/

Preparing the Unprepared
 by JW

A really simple and straightforward list of ways to help get the unprepared moving in the right direction.  Sometimes we all need a little help to do the next thing and take another step forward. 

http://prephappy.com/prepping/preparing-the-unprepared-5-ways-to-help-your-loved-ones-move-towards-preparedness/

Image | Preparing Your Firewood Supply
Preparing Your Firewood Supply
by sootsme

How to Choose Firewood

In most areas, there are a few preferred species, based on several factors: cost, availability, burn qualities, etc. The species that best meet each of these criteria will vary considerably in different areas of the country.

Generally, the densest (heaviest) dry wood will provide the most heat for any given amount of storage and firebox space. If convenient, the best way to shop for wood would be to figure out the cost per pound. This can be approximated by referring to charts showing the weights of various wood species. Another approach that will yield pretty much the same results is to compare various species' BTU ratings and use it to determine the cost per BTU. Note that this is not necessarily the same as cost per cord. Wet wood will need to be seasoned (cut, split, and stacked) for a year or two before you use it.
Preparing Your Firewood Supply
 by sootsme

How to Choose Firewood

In most areas, there are a few preferred species, based on several factors: cost, availability, burn qualities, etc. The species that best meet each of these criteria will vary considerably in different areas of the country.

Generally, the densest (heaviest) dry wood will provide the most heat for any given amount of storage and firebox space. If convenient, the best way to shop for wood would be to figure out the cost per pound. This can be approximated by referring to charts showing the weights of various wood species. Another approach that will yield pretty much the same results is to compare various species' BTU ratings and use it to determine the cost per BTU. Note that this is not necessarily the same as cost per cord. Wet wood will need to be seasoned (cut, split, and stacked) for a year or two before you use it.
Image | Introducing Couchbunker
Introducing Couchbunker
by JW

I came across this article and couldn't resist posting.  You could definitely find more than loose change under the couch cushions with this piece of furniture.

http://www.treehugger.com/eco-friendly-furniture/transformer-furniture-be-ready-anything-couchbunker.html

Introducing Couchbunker
 by JW

I came across this article and couldn't resist posting.  You could definitely find more than loose change under the couch cushions with this piece of furniture.

http://www.treehugger.com/eco-friendly-furniture/transformer-furniture-be-ready-anything-couchbunker.html

Image | Why We All Lose If the Fed Wins
Why We All Lose If the Fed Wins
by Chris Martenson

If we hold the view that humans are behaving unsustainably in terms of any of the 'three Es' – the economy, energy, or the environment – then any rapid resumption of a paradigm of exponential growth in our consumption of natural resources – or in our growth of debt over income – simply takes us more quickly to the bitter end of this story.
Why We All Lose If the Fed Wins
 by Chris Martenson

If we hold the view that humans are behaving unsustainably in terms of any of the 'three Es' – the economy, energy, or the environment – then any rapid resumption of a paradigm of exponential growth in our consumption of natural resources – or in our growth of debt over income – simply takes us more quickly to the bitter end of this story.
Image | The Real Story to Focus On
The Real Story to Focus On
 PREVIEW
by Chris Martenson

Executive Summary

  • What Detroit tells us about continuing the status quo
  • The shocking true size of the real U.S. debt
  • Why time is our most valuable – but scarcest – asset
  • Where your efforts need to be placed to address the big picture

If you have not yet read Part I: Why We All Lose If the Fed Wins, available free to all readers, please click here to read it first.

If we can't even have an honest conversation six years into this failed experiment about its core aspects, then it is little wonder that there's virtually no appetite for the bigger burning questions of our time, such as where do we want to be in twenty years and what do we need to do to get there?

Instead, the focus is simply on preserving the status quo and doing everything possible to maintain it. Never mind that the status quo is obviously failing in many key regards and needs some serious adjustments.  All that the Fed and D.C. have in mind here is more of the same.

And this is why we will lose the war.

The Detroit Harbinger

If we want to know what happens when we ignore reality and just soldier on, we need look no further than Detroit to see how that works out. For years, that city mismanaged its finances, continually banking on the idea that eventually jobs and opportunity would return. They continued to offer – yet failed to fund – lavish pension promises to municipal employees, even though anybody with a pocket calculator could work out that the plans were not viable.

But the plans were offered, and the union reps on the other side of the table accepted the terms, even though at some point it would have made sense for someone to raise the obvious by noting that the plans were utterly insolvent and almost certain to stay that way.

Right now, the pensions in Detroit are underfunded by $3.5 billion, according to official figures.  But those same officials are assuming an 8% rate of return on current pension assets, a rate that nobody is actually achieving in the pension world – thanks, in large part, to Bernanke's 0% interest rate policy.

Here's how they got to this point:

The Real Story to Focus On
 PREVIEW by Chris Martenson

Executive Summary

  • What Detroit tells us about continuing the status quo
  • The shocking true size of the real U.S. debt
  • Why time is our most valuable – but scarcest – asset
  • Where your efforts need to be placed to address the big picture

If you have not yet read Part I: Why We All Lose If the Fed Wins, available free to all readers, please click here to read it first.

If we can't even have an honest conversation six years into this failed experiment about its core aspects, then it is little wonder that there's virtually no appetite for the bigger burning questions of our time, such as where do we want to be in twenty years and what do we need to do to get there?

Instead, the focus is simply on preserving the status quo and doing everything possible to maintain it. Never mind that the status quo is obviously failing in many key regards and needs some serious adjustments.  All that the Fed and D.C. have in mind here is more of the same.

And this is why we will lose the war.

The Detroit Harbinger

If we want to know what happens when we ignore reality and just soldier on, we need look no further than Detroit to see how that works out. For years, that city mismanaged its finances, continually banking on the idea that eventually jobs and opportunity would return. They continued to offer – yet failed to fund – lavish pension promises to municipal employees, even though anybody with a pocket calculator could work out that the plans were not viable.

But the plans were offered, and the union reps on the other side of the table accepted the terms, even though at some point it would have made sense for someone to raise the obvious by noting that the plans were utterly insolvent and almost certain to stay that way.

Right now, the pensions in Detroit are underfunded by $3.5 billion, according to official figures.  But those same officials are assuming an 8% rate of return on current pension assets, a rate that nobody is actually achieving in the pension world – thanks, in large part, to Bernanke's 0% interest rate policy.

Here's how they got to this point:

Image | Michael Pettis: The Future of China
Michael Pettis: The Future of China
by Chris Martenson

Is China destined to emerge as the dominant superpower that will drive the 21st century to new heights of prosperity? Or instead, might it collapse spectacularly under the weight of its own overinvestment, dragging the global economy down with it in history's largest 'hard landing'?

Few people can see the big picture in China more clearly than Michael Pettis, Beijing-based economic theorist and Professor of Finance at Peking University. Michael sees China's future prosperity tied to its ability to successfully address:
Michael Pettis: The Future of China
 by Chris Martenson

Is China destined to emerge as the dominant superpower that will drive the 21st century to new heights of prosperity? Or instead, might it collapse spectacularly under the weight of its own overinvestment, dragging the global economy down with it in history's largest 'hard landing'?

Few people can see the big picture in China more clearly than Michael Pettis, Beijing-based economic theorist and Professor of Finance at Peking University. Michael sees China's future prosperity tied to its ability to successfully address:
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