Click here for Martin Armstrong’s latest blog post entitled Chinese Yuan Surpasses Euro as Number 2 Currency for Trade dated December 4, 2013.
December 6, 2013
December 2, 2013
Click here for an article about a new regional currency in the Middle East (Bahrain, Kuwait, Qatar and Saudi Arabia). It will be pegged to the Dollar and not an internationally traded currency.
Groovygirl suspects that this is an attempt to control national inflation levels caused by the USDollar to prevent or control rebellions in that area. Nothing like high food prices to spark a revolution….
Could be that they are setting this regional currency up now, getting people used to it, and will change the peg as necessary in the future.
The take-away here is that everyone is trying to protect themselves from the eventual destruction of the USDollar.
November 25, 2013
November 22, 2013
The latest GEAB N 79 from LEAP 2020 is out. They have a rather extensive summary which is free. Click here. Very good!
Yuan is making its way quickly onto the international stage. The latest news is a crude trading platform in Asia with crude oil trading in the yuan. Click here.
November 21, 2013
Free summary from John Williams at shadowstats.com. He has the real stats.
- Watch Out for the Dollar
– October Annual Inflation: 1.0% (CPI-U), 0.8% (CPI-W), 8.5% (ShadowStats)
– Retail Sales Gain Was Statistically Insignificant; Recession Signal Remained Intact
– Official Real Earnings Declined in October
– Existing Home Sales Declined for the Month; Annual Growth Slowed Markedly
Groovygirl looks at the spread between the real inflation rate, right now running around 8.5%, and the rates you can earn at the bank. Those are currently running better than recent months around 2%. Whoo-hoo! This gives a good idea about how far behind real people are falling. Someone living off of investments alone would have a hard time finding a consistant 8.5% return after taxes. (Maybe real estate cash flow) If you compare a business/company’s annual gain and the real inflation stats, it will give you a quick look to see if they are falling behind too. Business annual reports are more complicated, but it directs you to which businesses to investigate further. You can do this with tax revenue for states, counties, and cities, etc. If they are not bringing in at least 8.5% more, then they have to cut somewhere at some point.
Easy money and credit have hidden these truths since the dollar began to really fall in 2001. Once liquidity evaporates for good, it is all over. We have experienced liquidity evaporating twice in the last decade and numerous examples from other countries in the last 5 years. We know what happens. It should not be a surprise when it happens again and you have no excuse not to be prepared.
Chart of the Day is an updated inflation-adjusted DOW chart. We keep hitting that resistance level. Click here.
Groovygirl knows that everyone is excited about the stock market and “new highs”, but this chart of the day shows:
- A clear winter cycle since around 2000 or the dot.com bust
- A firm resistance level at around $15,000 (inflation-adjusted)
- After taxes, you may have not made back your losses, even if you entered the market perfectly timed. Taxes are very important to consider in these times.
- There were major swings in the stock market during the Great Depression as well. This is not unusual.
- We are really in the middle of the long-term trading channel. We could go up, we could go down…..
The recent drops in this winter cycle were driven by bubbles popping and terrorist events. (dot.com pop, 9-11, and housing bubble pop) During a winter cycle, the market is very sensitive to outside forces. Confidence is easily and quickly lost and then regained. This is why buy and hold is not a good long-term strategy during a winter cycle. Groovygirl is not saying that you can’t make money during a winter cycle, it just isn’t the best time for a buy and hold pattern.
October 17, 2013
October 15, 2013
Did you all see that flash up at mid day in the USD chart? No, no, there is no manipulation……
Gold still holding 1250 as the low.
October 11, 2013
Here is Lew’s response to the US Dollar as a reserve currency. He says that the world counts on the US’s policy of the dollar for stability.
groovygirl is taking an online course out of Hong Kong that tells a very different story. Asia thinks that the US’s dollar policy helps the US domestic policy and not the world’s stability and they are aggressively thinking up something new and improved. It is always interesting to get away of the US propaganda blinders to see what other people think. Although, they also have their own agenda, but seem to be very aware of the short comings of the current system and hope to form something that doesn’t have those short comings….
Always understand the CONTEXT first, then the CONTENT. Know the point of view of the author, teacher, or politician, then you can better discern the truth, no matter what the info they put forth.
This new currency move will end the prosperity and positive debt expansion that the US has enjoyed since 1945, secured in 1971 but the disconnect of the dollar to gold, and continued to be secured by the protection of the petro-dollar trade through the Saudis and their financial influence in the oil region. It is now Asia’s turn in the cycle.
October 9, 2013
Click here for Martin Armstrong’s latest blog post entitled Debt and the DOW dated October 7, 2013. He has the latest ECM chart on the DOW as well.