muses of the moment

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.


  1. Eric Sprott confirms the tightness in silver. In the following clip he says there is no more silver left –

    Comment by sw — February 23, 2011 @ 6:13 pm

  2. SW,

    I hope all who wanted silver, bought it and took possession. This shortage probably will not really impact the price until the end of the bull market. Right now, it just means the silver ETF will have less and less as they sell what they have for a profit over the next few years.


    Comment by totallygroovygirlfriday — February 23, 2011 @ 6:34 pm

  3. TGGF,

    Haven’t talked with you lately … great comments on your site today. What’s going on around the world brings me back to my youth and hearing about all the riots and protesting back in the late 60s. To see this going viral in North Korea has convinced me that this is a global phenomenon. Getting rid of dictators and communism is great. People do want to be free. However, I concerned about WHO is going to fill these voids in these countries. More radicals? Socialists? Capitalists? New Dictators? Haven’t all of these systems already failed? Quite interesting wathcing all of this unfold I might say. I’m now wondering about what is going to happen here in the US. Are we going to go down the same path? I hope not!

    Comment by Mike McN — February 24, 2011 @ 11:04 am

  4. Mike,

    Good to talk to you again. Yes, I am wondering the same thing, what will fill the void? I hope something more sustainable.


    Comment by totallygroovygirlfriday — February 24, 2011 @ 12:34 pm

  5. Mr. Wheeler appears to be having a Maalox Moment.

    Hey Louis, Hope you packed enough popcorn!

    Comment by Lore — February 25, 2011 @ 5:24 pm

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