muses of the moment

February 28, 2011

Latest Letter from Martin Armstrong dated February 17, 2011

Filed under: Martin Armstrong — Tags: — totallygroovygirlfriday @ 2:24 pm

Click here for Martin Armstrong’s latest letter dated February 17, 2011, entitled, The World Revolution and the Markets (15 pages).

Martin charts some currencies in the final pages. He also reveals a revolution cycle. We are currently in the middle of one, set to end in 2018. But what will be replacing the current regime in 2018 is unclear.

Jim Rickards on kingworldnews

Very important interview with Jim Rickards. Click here. Listen to this interview twice.

Out of Davos, the powers that be have a detailed plan from the IMF to move from the US Dollar to SDRs as the world reserve currency. Since this is the only plan talked about, groovygirl is assuming this will happen in some form. However, since it will be awhile before it is fulled established, be prepared for oil, gas, and other commodities to be traded in regional currencies, not the USDollar.

Some main points on the coming new world currency:

  • The euro took 10 years to really be tested, launched and used as a global currency. If the IMF is planning a global SDR, it may be 10 years of currency collapses before it is really stabilized.
  • SDR is a basket of fiat currencies. So still printable, not tied to anything. Global QE, here we come. $200 Billion per year, leveraged to $1 Trillion. Wow. This is again a short-term solution to continue international trade only. Until the global debt is dealt with, the global economy will be depressed.
  • There is no capital, so what will they base this new money on? Nothing, it is fiat.
  • The dollar will start out as part of that basket and be dialed down gradually. So at some point, dollars will only be usable in the US.
  • QE3 will happen.
  • The prices aren’t going up, the USDollar is going down.
  • DO NOT SELL HARD ASSETS, especially physical gold and silver.

Jim Rickards: there are no good resolutions to the collapsing currencies, printing has to continue.

Groovygirl comments: as I have said before, we are indeed looking at a 2-tier currency system: SDR as the global trading and reserve currency and then national currencies at home. If we do not get hyperinflation in the USDollar on a global scale, then the US will get hyperinflation on a national level when the globe starts dumping dollars back in the US. Therefore, do not sell physical gold and silver even after the SDR is set up. There is still the threat of hyperinflation in US dollars at the national dollar at a later date.

February 27, 2011

Gold supression

Filed under: Long term investing — totallygroovygirlfriday @ 1:27 am

Click here for an excellent video between Chris Powell and James Turk about how the gold/silver market really works (30 minute video).

Groovygirl comment: I have been hearing alot about how gold and silver suppression has been going on forever and there is every reason to believe that they can keep it going. That is not the case. Autocratic governments may make it go underground, but it can not continue to devalue it.

The K-wave Winter cycle (which began in 2000) is about EVERYTHING connected to debt, leverage, derivatives (paper gold is a derivative) COLLAPSING. That is the very definition of a winter cycle.

It may not collapse all at the same time, but by the end of the Winter Cycle, it will have all contracted, globally…..all fiat money, paper gold and silver, all derivatives, mortgages/housing, banking system, US Treasuries and any city, county, and federal debt.

The only question that remains: will it collapse into a deflationary depression or a hyper-inflationary depression? That is a policy question, but the depression part brought on by collapsing debt is a given. We are already in it and no policy can stop it now.

This has happened before in history, but never on the global scale we are facing today and never involving every currency on the globe. Even in the 1300-1400 collapse in Europe, they had gold and silver coins as alternate currency already in the system and had China trade routes to help with economic trade.

February 26, 2011

The Macs are still in a coma

Filed under: Housing Market — totallygroovygirlfriday @ 1:54 am

Fannie and Freddie has posted a gain, but that’s not really good news. From Bloomberg Click here.

The bad news, the US gov gave them $133 billion and they want $3 billion more, because they are losing less money than in past quarters. What?

Can’t we just pull the plug on these companies and put us all out of our misery? I think the Macs are the only ones insurancing new mortgages these days.

The housing markets and mortgage markets are dead. Let’s all acknowledge that and find a new system.

February 25, 2011

Tectonic Shift

Filed under: Bailout Nation, Fiat Currency, The Financial Crisis — totallygroovygirlfriday @ 8:13 pm

Groovygirl highly recommends this post from Tipping Points via zerohedge. Click here. Pay special attention to the Tectonic Shift Chart 2007-2013. This author is also calling for more market highs until June 2011 and then a downturn. That fits with Martin Armstrong’s economic cycle.

Long term look for silver

Filed under: Gold and Silver Investing, Precious metals — totallygroovygirlfriday @ 1:36 am

Click here for a very uplifting chart on silver. This chart compares the 1970′s run in silver to today.

However fun to look at, there is a high probably that silver will not correct as it is did in mid-1980. The reasons: we use much more silver today in industry, we have a shortage of supply currently, and there is no capital or credit available in the near future to start new silver mining (which takes about 10 years from discovery to production).

The main point of this chart is: SILVER IS CHEAP, BUY IT.

But disregard the timing of the chart. We are not in the same economic environment as we were in the 1970′s. This is a whole other ballgame.

February 24, 2011

Lira talks about US Debt

Filed under: US Government Debt — totallygroovygirlfriday @ 12:39 pm

Click here for a post about how the official US deficit keeps getting revised up without the media noticing.

But it is that rolling debt that will kill us.

February 23, 2011

What a difference a few days make

Early January we were in a recovery. Now, the whole world is going to hell in a hand basket. Chaos is the word of the day.

A few things that groovygirl is watching closely:

MERS has stepped out of the legal battle, US real estate is frozen again at any price. Blogs seems to be only one acknowledging the reality of this long-term real estate decline. Martin Armstrong is right. Update: just heard that 30% of home sales last quarter were foreclosures and 30% were cash sales, so that’s 30% that might actually have had a mortgage. Any guess on how many of those mortgages were directly from the US government? The housing market is dead because no one can get a loan, so it doesn’t matter how low the price is.

Canadian and Australian (probably Chinese too) real estate markets are the next to fall. That fall will have the same effect as the US market fall.

Major regime changes and uncertainty in the Middle East. Oil is going up, this will dampen every “recovery” on the globe, especially in the US. US Military has expanded their military presence in the Middle East significantly. Update: it is being reported on zerohedge that there are 10,000 dead in Libya amid protests. And Geithner says not to worry about rising oil prices because the economy is better and banks know how to handle these things. Does anyone screen this man’s statements to the press?

Every major country (besides the US) wants another global reserve currency. It is only a matter of time. The USDollar is dead.

The tone in the US has changed and now all MSM (not just FOX) is picking up on it and running with it. Denial is changing to disillusionment and anger.

Silver market is under a lot of pressure, running in cycles higher as options expire each month. The next four months in silver are going to be insanely bullish. Gold seems to be following suit. There is no physical silver in the market.

More military responses and preparations from US authorities. (Threat of National Guard in WI teacher protest, now US and Canada will use each others military for civil unrest national emergencies.) Mexico is still out of control. If any country needs a National Guard to go help with chaos, it’s Mexico.

Americans are getting killed around the globe. The world is clearly not enthralled with us anymore. Pirates kill 4 US citizens on captured yacht in Indian Ocean, US journalists mauled in Egyptian revolt, and Mexico drug gangs clearing targeting foreign visitors.

Secret independent contractor for the CIA is under arrest for double murder, who was originally a “diplomat”. But real story is he killed two Pakistani agents (not robbers) and he has information on him that proves he is helping Taliban in Pakistan. This is a major set back in the Afghanistan conflict.

All sorts of cover-ups revealed are making people distrust government…oil spill, debt, Iraq War, bank bailouts, anthrax mailings, etc, and this is just in the US. Election 2012 should be very interesting.

Europe is under heavy economic pressure, with weekend meetings and all nighters. EU is printing money and bailing out countries and big banks again. The last week has been really interesting. Next up, regime changes in Europe where Germany and France say no to more bailouts of weak European nations on their dime. Italy under major financial pressure with Libya’s revolt.

The word hyperinflation is actually being uttered in MSM. And everyone is acknowledging that the US has inflation in prices.

Bank runs in several countries who can’t print their own bailout money.

US States are bankrupt. The next question is….will they default, cut all pensions or will the Fed bail them out? There is no good answer to that question.

February 22, 2011

Stand off on the Suez

Filed under: Odds 'n ends — totallygroovygirlfriday @ 9:47 am

Five American warships are “delaying” the Iranian ships from passing through the Suez Canal as announced. Click here.

February 21, 2011

FDIC is insolvent

Filed under: Bank bailout, Dollar Crisis, FDIC, The Banking Crisis — totallygroovygirlfriday @ 1:26 am

The FDIC banking insurance plan is insolvent. At some point, whether we have a bank run or not, your deposits will go the way of the social security system and the pension system. IF you get paid back it will be less than you put in and it will have less purchasing power than when you started.

Click here.

This is why groovygirl keeps saying that the US banking system is dead, gone, never to return as we know it.

Keep some cash out of the banking system completely, keep what savings you have in at least 3 different banks with at least one of those banks in another country,  and keep long-term cash in something other than cash (gold, silver, oil, other currencies).

The US banking system is a slow train wreck. Right now it appears that the FDIC has it under control, they do not have it under control in the long-term.

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