From Martin Armstrong on Edward Snowden and fall of the American Empire. Click here.
From Martin: “This is precisely why Athens fell because they became arrogant and authoritative toward their allies.”
Groovygirl thinks what comes around goes around is the phrase of the decade. Otherwise known as Karma.
Side musing: gold still hanging out above $1300.
groovygirl thought this article from Pam Martens was very interesting.
From the link above:
Starting with the week of May 26, 2014, the Financial Industry Regulatory Authority (FINRA) began releasing weekly dark pool trading data to the public. That sliver of sunlight shows that some of the corporations with the largest share buyback programs are also among the heaviest traded stocks within the dark pools.
With banking declining, banks must make money anyway that can. This “recession” is hard on everyone, only bankers don’t go to jail for illegal activity to support their families, in gg’s humble and completely uneducated opinion :)
Take the case of Apple Computer. According to FINRA data, in the five weekly periods of May 26 through June 23, dark pools traded over 103.6 million shares of Apple stock. The heaviest week was the week of June 9, 2014 when 39.9 million shares traded in dark pools. Goldman Sachs was responsible for trading 2,444,350 shares of Apple that week in its dark pool, Sigma-X, and has been in the top tier of dark pools trading Apple stock in all subsequent weeks reported by FINRA.
So what happens when corporations need cash to meet operation costs? Will they all put their stock up for sale at the same time? And who is going to buy that stock? Goldman and sell to muppets? I think the muppets are either out of cash or pissed off or both.
This can not end well.
You may not have seen this. Kind of interesting…click here.
The leaked international trade agreement or TISA from June 2014, click here, seems to be a double standard. Individuals can not move money internationally, avoid taxes, heavy fees or trust their info is private, but too big to fail can.
I think international “sanctions” will be a guise for controlling individual money, but the too big to fail will continue to move money, launder money, and collect data. Brilliant.
On a positive note, more individuals will be forced to invest money locally. It is estimated that 50-90% of invested money is lost when it has to “go through” a third party’s hands, such as bank, broker, government, mutual fund, hedge fund, etc. Direct money from you to your local store, tradesman or business ends up creating more capital in the big picture. One reason why groovygirl likes this direct internet fund/business investing trend. But you still have to do your due diligence.
Groovygirl was rereading some old articles from Martin Armstrong. The ones on the typewriter. Of course, gg often reviews the Real Estate Cycle one. Seems we are still right on schedule for the long decline in US real estate into 2033 after 2015.
gg was also reading March 21, 2013’s post entitled March 22nd-Just Amazing. I think you can find it on his site.
Martin refers to August 3, 2014 as a turning point for the Sovereign Debt Crisis Wave Formation. She is keeping an eye on that date.
And, of course, with today’s international events, it seems we are on track for a rise in the war cycle going 2014-2016. Maybe impact the global debt issue as well. The more global economic sanctions, the less global capital moves, the less global debt/credit available.
Hope everyone is well.
Charles Hugh Smith brings up an interesting question. Who will boomers and their pension/401k plans sell their stocks to?
It is possible that other countries and emerging markets might or maybe too big to fail banks with free Fed money, but this scenario suggests some sort of long-term decline at some point under even the best of circumstances.
gg is hoping that emerging markets will be over their contraction in 5-7 years and be able to pick up the selling slack when a large population of aging Americans are selling for cash. Otherwise it could get ugly.
Same thing is/will happen in housing. Seniors need the cash equity out of their home and there are limited buyers. gg has thought for a long time that this pressure, with the increased debt burden/low-income on young people will contribute to the long-term decline in real estate in the US and other first world economies.
This is a long-term pressure on a long term cycle tied to generational demographics.
Click here for a conversation between Glen Downs and Martin Armstrong dated June 11, 2014.