muses of the moment

May 23, 2010

Latest letter from Martin Armstrong May 20, 2010

Click here (new link) for the latest letter dated May 20, 2010 from Martin Armstrong entitled Immoral, not Illegal, A Crisis in Ethics Repeating the 1930’s (15 pages).

Short summary: Mr. Armstrong talks about separating commercial banks and investment banks. That would be a start. This is a crisis in public confidence. Martin says that the banking model we use will always result in a crisis because of its very nature. Banks take deposits in the short-term and lend long-term to earn money on the difference between those two numbers. This works well until an economic downturn that happens every 8 years or so, when long-term depositors want their money back and it’s not there. Therefore….liquidity crisis. Constant booms and busts.

2 Comments »

  1. GG – thanks for summing up Armstrong’s letters and thanks for the insights.

    I have a question though, where does Armstrong gets all the images/charts/references in his articles if he’s in jail?

    Comment by Moe — May 24, 2010 @ 6:05 pm

  2. Moe,

    I believe the jail has a regular library, like a public library, where they get access to books, most current newspapers and magazines. Most jails have GED programs and pretty diverse libraries accompany those programs, especially heavy on history and the classics (that’s why we get alot of Roman history with quotes and pics.). It sounds like no computers/internet, just typewriters. I am sure his family and friends print out and mail him more up to date information that he might not have accesss to.

    These are just guesses, I do not know for sure.

    Thanks for reading,

    gg

    Comment by totallygroovygirlfriday — May 24, 2010 @ 6:40 pm


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