muses of the moment

March 19, 2010

Martin Armstrong’s handwritten letter dated 3-9-10

Groovygirl found lots of great information in Martin Armstrong’s second handwritten letter released a few days ago, it needs its own post.

Click here for the full letter (3 pages).

Martin’s plea to governments for sanity is quite quaint. It will, of course, be unheeded.

So, what to expect. What to look for:

First, the euro crisis is not fixed or contained, Greece is the beginning of the end. As the crisis moves through the PIIGS and beyond, Europe will either default or raise taxes or a combo and cause even more unrest than there is now.

Side musing: It seems Italy is not going down without a fight. The Italian gov is in the process of bringing criminal charges against 3 big US banks for derivatives fraud.

The USDollar (and thus the stock market) will rise, but only as investor money moves away from Europe. The US is not a smart bet in the long-term, but it is the least worst investment for the short-term in light of the Europe debt implosion.

The wave of debt crisis (with default or higher interest rates/taxes) will then focus on the US and individual states (CA, NJ, and NY to go first). Then investors will rush out of the dollar and US debt into gold and commodities and emerging markets.

(There are very few investments in which to hide in a debt crisis/fiat currency crisis. Money will be rolling around the globe looking for anything. That money will finally settle in tangible assets with no debt associated with them.)

Second, look for the signals that the rush is on out of the dollar.

You will note the coming regulation to pare down currency trading leverage cap from 100:1 to 10:1 for the public….catch that part…the public. I suspect that the Goldman House (and various other off-shore investment entities) will be exempt. And there you have it, GS making money with high leverage as these currencies implode. It is sickening.

Protect yourself!!! No leverage, only capital insurance to protect your purchasing power, such as physical gold, silver, oil, and then commodities as the shift begins. This shift could be very swift and most certainly will NOT be covered on F-TV. (You will notice they seem to think that the Greece debt crisis is over.)

Side musing: did you catch the interest on debt from the US from 1986-2006? That’s what your taxes are paying for….interest. It was planned that when the Fed was created in 1913, so were income taxes. Why? To pay for interest on money borrowed from the Fed.  And noticed the states that have doubled their property taxes in the last 10 years? Awful. Hope you don’t live in one.

Post side musing: Martin’s 5-point plan to contain the debt crisis seems like a great outline, please pass along. Of course, if this plan gets any gov acknowledgment, groovygirl sees a freeze on debt after the big banks are out and, of course, the gov will never go for that no taxes thing. Still a good idea.

So, in short, we are doomed. The second phase is beginning, the slight breather is over. Protect your purchasing power.

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