muses of the moment

September 30, 2009

National Sales Tax

Filed under: Economic Crisis, Odds 'n ends — totallygroovygirlfriday @ 8:59 am

It’s coming soon. Probably a VAT (value-added tax), such as Europe has. This tax will end up being double or triple by the time it reaches the consumer, as it will probably be “value-added” at the wholesale and resale level.

Click here for full story.

Some ways to avoid this coming tax:

  • Never buy anything new.
  • Buy used on Craigslist/garage sales at the local level with a cash transaction.
  • Repair/upgrade what you have, rather than buy new (from shoes to computers).
  • Barter with friends/people locally what you don’t need for what you do need.
  • If you need something temporarily, borrow it from a friend or neighbor. Pool your resources and share the cost. (No reason why every one in the neighborhood should have a chain saw.)
  • Grow your own food/shop at farmer’s markets/join a CSA. Don’t eat out. (Hopefully, our government leaders will exclude food from this discussion, but I am not holding my breathe.)
  • When this comes up as a bill, email your congressman/woman and make your opinion heard. Especially, if they plan to add it to services such as phone, cell phone, cable, and utilities.

More taxes will just hurt the economy more and China will not be happy either.

In addition, I have a feeling that States will be doing the same thing…very soon.

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September 29, 2009

Gold update

I thought this was very good advice from Jim Sinclair at jimsmineset.com:

Dear Friends,

I hear from so many of you. I am the focus of so many emails from you. My fax machine goes through more paper and toner than you could ever imagine.

Your fear, emotions and confusion communicate to me in more ways than you know.

The gold community had very little to do with gold recently crossing $1000. China stands right below this level in the cash market as a ready buyer.

The conditions moving the dollar are so very different from what was only a few months ago. Economic conditions are no longer improving which opens the possibility of a new acceleration on the downside.

You are fearful because of the proliferation of analysis concerning the massive short position of the commercial dealers in gold and silver. They do not have a 100% record of success.

You are fearful due to the proliferation of a flyer that you received in the mail saying that Elliot Wave calls for a decline in the price of gold and a rally will occur in the US dollar.

You are fearful because all media is unfriendly towards gold and friendly towards the dollar.

So many are asking for my help in an almost plaintive manner.

1. Gold will trade at $1224, $1650 and then on to Alf Field’s numbers.
2. The US dollar will go significantly lower for reasons reviewed this weekend here.
3. Companies that own and produce a commodity will benefit from the price of a commodity that is about to rise to historic prices regardless of the actions of present shorts. In this case the commodity is honest money – gold.
4. Do not carry one penny of margin on any silver or gold position. Volatility has only one way to go and that is up.
5. Stay totally away from trading futures.
6. I do not give short term trading instructions because this is not a tip sheet. This is a site dedicated to taking you through the sea of opposition to your self-protection.

Respectfully yours,
Jim

Please stop thinking in the short term. I can not repeat this enough. Buy physical gold and silver to protect your purchasing power in the currency crisis. The investing mineset of the last century should not be part of your thinking.

All global fiat currencies will FAIL. Gold will go to $10,000 (Alf Fields’ numbers) (and the economy will not even start to recover until 2018) because all confidence will be lost in fiat currencies, not because gold is a great stock pick.

It will be a rocky slope downward to get to the bottom. Protect your capital for that journey.

September 28, 2009

The Bank Implosion stumbles

Filed under: Bank bailout, FDIC, The Banking Crisis — totallygroovygirlfriday @ 6:42 am

Only 2 banks were taken over on the 18th and only one last Friday.

Click here for the failed bank list.

So, has the banking system been fixed and all banks are solvent? Is it safe for all humanity? hmmm….no.

The FDIC is out of money. Click here.

When they do get money, look out, they will make up for lost time. This is a controlled bank implosion. If the FDIC loses control (taking the next 2-3 years to close at least a third of the banks in this nation), it will be ugly.

Is your cash spread out over at least 2-3 banks?

September 27, 2009

Pent-up Houses

Filed under: Bailout Nation, Dollar Crisis, Economic Crisis, Housing Market, The Banking Crisis — totallygroovygirlfriday @ 2:01 pm

Just like a glut of printed USDollars is posed to descend on the US investor and consumer, the housing market has millions of bank-owned houses NOT on the market right now. At some point, they will be.

Housing prices will go down. The housing market can NOT recover until the resetting mortgages are done with, at least 2011. Then after the banks have unloaded all their foreclosures on the market.

Click here for more information.

And here.

September 26, 2009

Jim Sinclair explains hyperinflation

Jim Sinclair was interviewed by King World News. Very important information, listen twice. Click here.

September 25, 2009

Martin Armstrong’s latest letters September 20, 2009

Filed under: Economic Confidence Model Cycle, Fiat Currency, Martin Armstrong, Odds 'n ends — Tags: — totallygroovygirlfriday @ 10:18 am

Martin Armstong has issued 2 more letters.

The Collapse of the Rule of Law-A Prelude to Disaster dated September 20, 2009. (22 pages) Click here. No ecomonic predictions in this one except the cycle of the rule of law collapsing by 2020.

The DNA of the Global Economy dated September 17, 2009 (9 pages). Click here.

September 24, 2009

A lesson in cycles, literary style

I love satire.

I wanted to introduce readers to the Jon Stewart of the 1920’s and 1930’s, Will Rogers. Click here for more bio info. He followed in the footsteps of Mark Twain with political satire.

Will Rogers had a newspaper column during the 1920-30’s, read widely in the nation. He also toured on regular public appearances, did a few movies, appeared in The Ziefield Follies in New York City.

Here are a couple of excerpts, take note of the dates (He was from Oklahoma, a cowboy, so his down-to-earth speech is reflected in the writing):

January 10, 1926:

Now, when I tell you that if I was running the Government, there would be No lowering of Taxes, you know now a comedian is crazy.

President Coolidge says that we are approaching an era of prosperity. Everybody generally admits that we are better off than we ever were in our lives, yet we owe a National debt of almost 30 Billions of dollars.

We owe more money than any Nation in the World, and WE ARE LOWERING TAXES. When is the time to pay off debt if it is not when you are doing well? All Government statistics say that 70 percent of every dollar paid in the way of taxes goes to just the keeping up our interest and a little dab of amortization of our National Debts. In other words, if we didn’t owe anything our taxes would be less than one third what they are today……

Now here is what I can’t savy. Why is it that one of us, in fact all of us, will work and save, and stint all our lives. For what? Why to leave something to our children. When we die we want everything we have left clear and unencumbered. We will break our necks to leave them without a single debt. In fact we won’t die if we can help it till we get out of debt for their sake. Now that is what we will do as individuals, BUT, when it comes to COLLECTIVELY, why it looks like we will break our neck to see HOW MUCH we can leave them owing.

June 30, 1930 (from a public appearance in Minneapolis):

We are a good-natured bunch of saps in this country.

When the president is wrong, we charge it to inexperience.

When the tariff is wrong we laugh it off.

When Congress is wrong we charge it to habit.

When the Senate is right, we declare a national holiday.

When the market drops 50 points, we are supposed not to know it’s manipulation.

When a bank fails we let the guy go start another one……

Everything is cock-eyed, so what’s the use kidding ourselves.

September 24, 1930 (public appearance in Beverly Hills):

We never will have any prosperity that is free from speculation till we pass a law that every time a broker or person sell something, he has got to have it sitting there in a bucket, or bag, or a jug, or a cage, or a rat trap or something. We are continually buying something that we never get from a man that never had it.

Eerie and ironic, isn’t it?

We have been here before. I am confident that our government will make the same mistakes as in the 1930’s. If only for the fact that they made the same bubble mistakes in the 1990’s as they did in the 1920’s.

This is a cycle. A 100-year cycle. Do not expect a recovery or a return to 2007 prosperity until the winter cycle is complete. In 1929, the stock market did not hit the same level until the 1950’s. The stock market number may go up, but the dollar is heading down long term. Protect your capital during this winter part of the cycle.

September 23, 2009

I always get nervous when…..

Filed under: Odds 'n ends — totallygroovygirlfriday @ 12:41 pm

the major media outlets do a blackout. Could be large buildings have sealed windows now-a-days, so they can’t jump like in 1929. Or it could be something else?

This is all over the financial blogs, but nothing on the major outlets TV or internet. FYI, James McDonald is also on the board of CIT and some other companies.

This is directly from Jim Sinclair’s website, wanted to make sure I included it for your information:

Jim Sinclair’s Commentary

FPFF program has just been initiated by the US Federal Reserve. Free Prozac for Financiers.

Four Apparent Suicides/Deaths in 48 Hours – CEO-Financiers-Fundraiser
Posted by sakerfa on September 15, 2009

Rockefeller & Co’s CEO committed suicide: report
(Reuters) – James McDonald, chief executive officer of investment management firm Rockefeller & Co, committed suicide on Sunday in Massachusetts, the Wall Street Journal said, citing people familiar with the matter. – Read More

Newport Beach financier Danny Pang dies at 42
(LATimes) – Newport Beach financier Danny Pang died early Saturday at a local hospital, according to the Orange County coroner’s office. The cause of death has not been determined and an autopsy is planned for Sunday, said Larry Esslinger, supervising deputy coroner. – Read More

Financier Finn Casperson dead in apparent suicide
(Inquisitr) – Ex-CEO of Beneficial Corp. Finn H.W. Casperson was found dead in an apparent suicide behind an office building in Westerly, Rhode Island. – Read More

Dying Blagojevich fundraiser said he overdosed, mayor says
(CNN) – Police are investigating the death of the former chief fundraiser for ex-Illinois Gov. Rod Blagojevich as a “death-suicide,” an Illinois mayor said Sunday. – Read More

Side musing: Oh, and they found more US Bonds crossing the border in Italy. There is something major going on here…hidden in these fake bonds.You will notice that the 2 Japanese nationals caught with the last bonds have “disappeared”, wtf? Click here for the rest of the story.

September 22, 2009

Currency Crisis or Deflation

Mr. Pollock has an excellent video out (about 9 min.) that hits on several ideas I have been talking about in the past few weeks. Mr. Pollack is a day trader, I am not, so his video will focus on the short term and my posts will be long term suggestions. But this video talks about trading the dollar and how the value of the USDollar effects other trades. Click here for this EXCELLENT video.

I have said, if you do not understand the dollar as a trading currency, you will not know if your stock investment (or anything in the dollar) is losing or gaining value. As I have posted in the past, you can chart the DOW in gold, or you can study the movement of the dollar. Check out this post for more information.

This video is an excellent introduction of the basics of dollar trades. I do not trade dollars, but since I live in the US, most of my investments are valued in dollars, so it impacts my investments. My long term position is prepared for a decline in the value of the dollar.

Mr. Pollack also talks about the key markers that we should look out for (in the short term) to see if we are moving into deflation or hyperinflation. He believes we will move into deflation (short term) and then inflation or hyperinflation (long term). But right now, we are at the edge, it is not confirmed.

This is a great video with alot of information in 9 minutes. Watch it at least twice.

The dollar is now cheaper than the yen and the dollar is the carry-trade currency. If this continues, it will accelerate the devaluing of the dollar. It is clear that the best solution that the government is shooting for…….prolonged stagflation such as Japan experienced in the 1990’s until now.

In addition, very interesting sidenote, Fidelity is sending out letters stating that retirees should take out 4% not 8% of funds per year. I guess they are out of dollars.

September 21, 2009

Finally, someone calls it as it is

“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.”

Nothing is fixed.

Read whole article here.

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