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San Onofre power plant via the Nuclear Regulatory Agency

The Dawn of the Great California Energy Crash

Like CA, more states will soon ask, "Where will our energy c
Sunday, July 22, 2012, 8:46 PM

California, which imports over 25% of its electricity from out of state, is in no position to lose half (!) of its entire nuclear power capacity. But that’s exactly what happened earlier this year, when the San Onofre plant in north San Diego County unexpectedly went offline. The loss only worsens the broad energy deficit that has made California the most dependent state in the country on expensive, out-of-state power. » Read more

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Our New Endorsed Solution for Purchasing Precious Metals

Offering institutional advantages to the retail investor
Thursday, July 19, 2012, 11:13 PM

We're very pleased to announce our participation in the Hard Assets Alliance, our newly endorsed solution for purchasing precious metals.

For years, we've received a continuous stream of questions from readers, all essentially asking where's the best place to buy gold and silver?

While we've done our best to review and present an assessed list of the top bullion vendors, the remaining work readers needed to do in comparing each of them was still more challenging and confusing than we were comfortable with. It's been clear that folks are hoping for a single "best of the best" recommendation.

That's why we were so glad when the Hard Assets Alliance was formed, and we had the good fortune to be invited to be a Founding Member. This new platform offers so many clear advantages to customers that we were happy to throw our support behind it. » Read more

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The Growing Pressures Likely to Blow the Eurozone Apart

Look for Finland to exit first
Wednesday, July 18, 2012, 1:18 AM

There was yet another European Union summit at the end of June, which (like all the others) was little more than bluff. Read the official communiqué and you will discover that there were some fine words and intentions, but not a lot actually happened. However, there are some differences when compared with past meetings that need explaining:

  1. The European Council is being asked to consider permitting the European Central Bank to have a regulatory role alongside national central banks “as a matter of urgency by the end of 2012.” When this new super-regulator is eventually established, perhaps the ECB might be able to recapitalize banks directly. This was needed three years ago; the Eurozone will be lucky not to have a new banking crisis in the next few months, let alone by the year-end.
  2. A bail-out for Spain’s banks is agreed in principle, but it is to be funded by the European Financial Stability Facility (EFSF) until the European Stability Mechanism (ESM) is up and running. The EFSF has no money and relies on drawing down funds from all member states including Greece, Spain, Italy, Ireland, and Portugal, and the chances of the ESM being ratified by the individual Eurozone parliaments is very slim. We are told that Spain’s banks need about €100bn, but how much they really need is not known.
  3. The ESM will not rank as a prior creditor to the disadvantage of bond holders. This is a positive step, but makes it more difficult for national parliaments to authorize the ESM.

The big news in this is the implication the ECB will, in time, be able to stand behind the Eurozone banks because it will accept responsibility for them. This is probably why the markets rallied on the announcement, but it turned out to be another dead cat lacking the elastic potential energy necessary to bounce.

e another dead cat lacking the elastic potential energy necessary to bounce. » Read more

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Middle Class? Here's What's Destroying Your Future

Why it's harder than ever to build wealth
Wednesday, July 11, 2012, 8:36 PM

According to the conventional account, the Great American Middle Class has been eroded by rising energy costs, globalization, and the declining purchasing power of the U.S. dollar in the four decades since 1973. While these trends have certainly undermined middle-class wealth and income, there are five other less politically acceptable dynamics at work:

  1. The divergence of State/private vested interests and the interests of the middle class
  2. The emergence of financialization as the key driver of profits and political power
  3. The neofeudal “colonization” of the “home market” by ascendant financial Elites
  4. The increasing burden of indirect “taxes” as productive enterprises and people involuntarily subsidize unproductive, parasitic, corrupt, but politically dominant vested interests
  5. The emergence of crony capitalism as the lowest-risk, highest-profit business model in the U.S. economy
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Our Money Is Dying

Don't let your wealth die with it
Tuesday, July 10, 2012, 10:35 AM

On the minds of a lot of people, and increasingly on those who manage or invest money professionally, is how to preserve wealth during a period of intense official intervention and manipulation of money supply, price and asset markets.

As every effort to re-inflate and perpetuate the old credit bubble is made, the words of Austrian economist Ludwig Von Mises lurk ominously nearby: » Read more

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Coal: The Ignored Juggernaut

The most likely fuel for a world in decline
Thursday, June 28, 2012, 10:46 AM

Oil, natural gas, and alternatives dominate the headlines when it comes to energy. But there's a big and largely-overlooked revolution occuring with the energy source likey to become the most preferred fuel for a world in ecomomic decline: coal.

The United States coal sector has been hit very, very hard this spring. Demand has been crushed by over 10%, as warm weather and bountiful supplies of cheap natural gas have induced power plant operators and all other users where possible to switch away from domestic coal. The rapid change in fortune has sent the stock prices of big, listed names such as Peabody and Arch down by double digit percentages, as the Dow Jones US Coal Index has fallen below 160 from above 225 at the start of 2012. » Read more

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Shadow Bank Runs & Central Bank Gaffes

Watch Chris' latest interview on RT's Capital Account
Tuesday, June 26, 2012, 6:34 PM

orded an interview today with Capital Account's Lauren Lyster discussing shadow banking & crisis risk. Watch it below: » Read more

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Becca Martenson

Join Us at Kripalu Next Weekend

This will be our last weekend seminar in 2012
Friday, June 22, 2012, 5:11 PM

I would like you to join me, Becca, Adam, and other Crash Course-aware individuals for a powerful, calming, transformative, and intimate weekend session at the Kripalu Center June 29-July 1. This is the only remaining seminar on the 2012 calendar, so be sure to register or be prepared to wait until at least 2013 for the next one.

So much is transpiring so rapidly these days (welcome to the steep portion of the exponential curve) that anything and everything we can do to prepare ourselves mentally, financially, physically, and emotionally is the best use of our time.

You should especially come if you want to get to meet other like-minded people in a relaxing setting, be invigorated, and come away with a clear sense of what to do next.

We will address:

  • Talking to (and living with) reluctant partners (friends, colleagues, and neighbors, too)
  • Emotional barriers to action
  • How our beliefs can be limiting or enhancing, and knowing which we are holding
  • The six stages of awareness
  • A full tour of the precise steps that Chris and Becca have taken at their homestead
  • Hope & Fears - an open discussion among friends about the future
  • Creating community
  • Developing your own resilience steps and checklists
  • Financial steps you should take - we'll have one of our endorsed financial advisors on hand to address your questions
Blog

When Will Reality Intrude?

When will the market hit bottom?
Thursday, June 21, 2012, 9:57 PM

If we pursue the line of inquiry established by Chris Martenson’s recent call to Buckle Up -- Market Breakdown in Progress, we come to these basic questions: When will the market reflect the fundamental weakness of the global economy? And when will the market finally hit bottom? » Read more

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Abandoning Ship

The Eurozone is failing at an accelerating rate
Monday, June 18, 2012, 4:19 PM

It will be no surprise to PeakProsperity.com readers that the news coming out of the Eurozone just gets worse and worse. The reality is that (in no particular order) Ireland, Portugal, Spain, Italy, Belgium, Greece and France are all in debt traps from which there is no escape. A debt trap is sprung when bankruptcy becomes the only outcome. With corporations this usually becomes readily apparent and directors are forced by law to stop trading, but countries conceal this reality by printing money. » Read more