muses of the moment

May 16, 2011

Latest Letter from Martin Armstrong dated May 15, 2011

Click here¬† for Martin Armstrong’s latest letter dated May 15, 2011, entitled End Times for Hedge Funds? (10 pages).

It is about the possible impact of the recent Raj Rajaratnam’s conviction on the hedge fund industry in the US.

GG says: Maybe this is why the volume is so low on the S&P all the time, all the hedge funds have left for other countries and markets.

Japan data via Chris Martenson

Filed under: Economic Crisis, Odds 'n ends — totallygroovygirlfriday @ 1:11 pm

Click here for an excellent article regarding the ongoing Japan crisis. Still not good. We clearly have had and may continue to have a global cover up. Chris also recommends the Fairewinds site for ongoing updates.

As this information leaks out to Japanese citizens, people will leave, the economy will continue to slow and stop. Japan was the third largest economy in the world. From Chris’ post:

The Remaining Fears

The good news is that nothing has blown up lately at the Fukushima complex, indicating some sort of stability and the likelihood that the reactors, while a complete mess, are not going to do anything more dramatic than they’ve already done.

The bad news is that reactors #1, #2, and #3 are all really badly damaged and leaking contamination to the outside world. Pouring water on them only creates more radioactive water which will find its way into the groundwater and/or the ocean.

The fear is that the molten cores are still cooking along, slowly working their way out of first the primary containment vessels and that they might slowly eat their way out of the secondary containment vessels too. If that happens, then there is a very real chance of extremely large-scale release of radioactive contamination -possibly in a rather vigorous manner – should some sort of re-criticality be established or just a good-old-fashioned steam explosion occur if/when the molted cores encounter water.

Can we rule out another, possibly larger, ‘prompt criticality’ event? No, not at this stage.

Another fear centers on the fact that we’ve not yet been treated to full disclosure on the amount and types of radiation released. Is there still significant iodine-131 being released more than 60 days after the beginning of this event? If so, that will mean that criticality is still going on or has recently happened because by this stage more than 99% of the initial 1-131 has decayed away.

The difference between fighting the leftover decay heat and trying to deal with re-critical fuel is like night and day. The former is slowly cooling off naturally, the latter is generating heat.

So, yes, we need to and deserve to know exactly what the isotopes are that are being found, in what proportions, and whether there are pockets of criticality in any of the damaged reactors.

And so it begins

Filed under: Fiat Currency, The Financial Crisis, US Government Debt — totallygroovygirlfriday @ 12:08 pm

Ladies and Gentlemen,

The US Treasury will today borrow funds from the US Federal Pension Fund to cover government spending until the debt ceiling can be officially raised. This gives us a clear preview as to the next public fund to be drained of money. This is EXACTLY what happened to the social security fund. They borrowed funds and replaced them with IOUs. Sometimes they put money back, sometimes not and eventually we ended up with a file cabinet of IOUs.

Click here.

The Secretary declared a “debt issuance suspension period” for the Civil Service Retirement and Disability Fund, permitting Treasury to redeem a portion of existing Treasury securities held by that fund as investments and suspend issuance of new Treasury securities to that fund as investments.

Next in line, when the world will not buy US Treasuries, when our debt is 100% of ten years worth of US GDP, the gov will force 401ks and state/local pensions to buy US Treasuries. And if you think it will take 40 years to get to that point, think again.

China has now moved from refraining from buying more US Treasuries to reducing their holdings. Click here.

You are now responsible for your own retirement, protect yourself accordingly.

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