muses of the moment

July 23, 2011

Real earnings per share

Filed under: 401K and IRAs, DOW and S&P500, Economic Crisis, Stock Market — totallygroovygirlfriday @ 1:01 am

Groovygirl has presented in the past, how the stock markets represented in gold is showing a declining trend. And declining, not since 2007, but since 2001. The stock market, unless you know which wonderful stocks to pick, is not the place for all of your money. The gold bull market started in 2000 and continues today. Gold is the “currency” that shows the real value of the dollar.

Click here.

For example, when corporate earnings are measured in dollars, an investor will find that earnings are currently greater than what was achieved during the dot-com bubble and fast approaching the record levels that were achieved at the tail-end of the credit bubble. However, when measured in another world currency such as gold (see today’s chart), the earnings picture isn’t quite so rosy. Today’s chart illustrates how S&P 500 earnings measured in ounces of gold actually peaked back in 2001 and has moved within the confines of a dramatic downtrend ever since.

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July 22, 2011

David Morgan

Filed under: Gold and Silver Investing, Long term investing, Precious metals — Tags: — totallygroovygirlfriday @ 1:26 am

Click here for an excellent interview with David Morgan on Chris Martenson’s website. He does an excellent job of explaining the risks of different silver investments, especially ETFs. And , of course, the ongoing silver manipulation. Very good info here.

July 21, 2011

John Williams on financialsense.com

I think SW sent this link, but just now getting around to a post about it.

Click here for a July 14, 2011 interview with John Williams of shadowstats.com on financialsense.com, On The Road To Hyperinflation 2014. It is about 30 minutes, well worth the time.

The take-aways for groovygirl:

Still looking at hyperinflation to hit at the latest in 2014. Get prepared now, if you haven’t already.

Mr. Williams explains in detail his definition of hyperinflation. It is a deflation in debt, hyperinflation in consumables. The additional money created to combat the deflation in debt, which we are already seeing, might cause assets prices, such as stocks to rise. But real estate asset prices, based on debt creation, could continue to fall in real value.

A rising stock market will have to be calculated in gold to determine the real value. Housing prices will have to be calculated in gold to determine the real value.

Gold will only keep the purchasing power of the currency it is denominated in. If you invested one dollar in gold today and by hyperinflation, that investment was $100, you have not “made” $99, you have kept the purchasing power of that original $1.

Mr. Williams suggest you get out of the dollar and into physical gold, silver, tangibles, Swiss franc, etc. He talks about real estate, but mentions that it is NOT liquid and may take years to keep purchasing power.

Generally, 2014 and beyond will not be pretty.

Ray Dalio says the same thing, click here.

The bullet points of Mr. Williams’ latest summary. You pay for the detail, but here is the punchline:

– Housing Starts Boosted by Apartment Starts (gg: this is not positive for the US housing market implosion)
– Existing Home Sales Suffer From Liquidity Crunch (gg: this is a characteristic of the K-wave winter cycle)
Solvency Crisis: Banks Are Not Increasing Aggregate Lending (gg: banks are insolvent, financials are legally completely fictitious, that is why they are not lending.)
– Downside GDP Revisions Loom (gg: not good, this just makes the GDP to debt ratio worse, not better)

July 20, 2011

The Oil Bourse

Filed under: Dollar Crisis, Economic Crisis, Fiat Currency, Inflation, Odds 'n ends, Peak Energy — totallygroovygirlfriday @ 6:46 am

Interesting development in the move away from dollar-denominated oil. Click here.

If Israel attacks Iran (or reverse), and the US backs them, this will be the reason why.

The takeaway here is whether oil is dominated in dollars or anything else, as long as the dollar continues to be printed, oil and gas for the American consumer will become more and more expensive. The rest is just another reason for the world to think the US is a big bully, which we are. But there is a new kid in town and he is unimpressed with our bully tactics.

GS wins again, investors lose

George Washington reminds us how Goldman Sachs (and others) bet against the same mortgage securities that they sold to clients. He also reminds us that they did the same thing in Europe and we are seeing the result today. Click here.

Don’t think that they won’t do the exact same thing to US debt (city, county, state, and federal). They will.

Goldman Sachs will keep working this plan…package unpayable debt (made pretty by accounting gimmicks), sell to clients around the world (including sovereign funds and pension funds) and then short the debt, and make tons of money when it implodes. Buy up what real assets are left at the fire sale for pennies on the dollar and resell them at a 500%+ profit. Then, move on to the next debt implosion target.

They will do this until all global debt (including currencies) have imploded or someone decides to put them in jail, since, you know, this is illegal.

On the brighter side

Click here for a post about Will Allen and growingpower.org. He is actually building assets (not destroying them) and educating youth and urban communities in the process. Check out his website, great info on the very practical sustainable food systems he has created. If you think you and your community can’t be self-sufficient with food all year round (he is in Milwaukee); he will challenge your thinking. The City has asked Allen to create a sustainable food program that will create 150 new jobs. Click here.

Side musing: groovygirl LOVES his system of using compost piles (which generate heat naturally) to warm hoop houses in the winter time. And of course, the fish to soil cycle is ingenious.

Will Allen wins, farmers win, urban community wins, local eaters win, youth wins, communities win!

Nothing destroyed, even the waste is composted.

Wow, Will Allen…..polar opposite of Goldman Sachs.

July 19, 2011

Seniors to die a slow death….

Filed under: Social Security and Medicare, US Government Debt — totallygroovygirlfriday @ 6:08 pm

…one percentage point at a time.

The current “compromise” on the table to get the debt ceiling raised. Click here for detail.

Enacting a $500 billion down payment that would secure immediate deficit savings, while establishing a fast track process for the committees in Congress to specify further savings

  • Impose statutory discretionary spending caps through 2015.
  • Implement numerous budget process reforms.
  • Shift to the chained-CPI (a more accurate measure of inflation) (gg: yeah-right) government-wide starting in 2012 (gg: Nov, after elections?), along with the following specifications for Social Security: (1) exempt SSI from the shift for five years, and then phase in the shift over the next five years; (gg: everyone in office now should have retired overseas by then) and (2) provide a minimum benefit equal to 125% of the poverty line (gg: another inadequate formula) for five years (gg: only 5 years ladies and gentlemen, after that you are screwed). (According to CBO, the shift to chained-CPI would result in the annual adjustment growing, on average, about 0.25 percentage points per year slower than the current CPI.) (gg: the current CPI is about 8 points off, so now, it will be 8.25 points lower than real prices. I want John Williams to review that formula! Don’t forget to add in the devaluing of the US Dollar for the foreseeable future!!!)
  • Repeal the CLASS Act.
  • Enact concrete policy changes that lock-in additional savings, including freezing Congressional pay and selling unused federal property. (gg: how about repealing Congressional pay?)
  • Require GAO and the Department of Labor to report to Congress on establishing a more effective unemployment insurance trigger. (gg: in other words, lower the trigger).

And there you have it. Congress and the White House can say they won’t cut social security, but in reality, they do. The game of bait and switch that is the US Social Security System continues….wake up! and buy some gold and silver for “retirement”, so you can actually eat.

Latest Letter from Martin Armstrong dated July 19, 2011

Filed under: Fiat Currency, Gold and Silver Investing, Precious metals — Tags: — totallygroovygirlfriday @ 4:09 pm

Click here for Martin Armstrong’s latest letter entitled Gold v Money from his Answering Your Questions series dated July 19, 2011 (3 pages).

Gold is a hedge against government policies such as we are seeing now. A gold standard for currency would not work, but cause a deflation. The problem is debt, it must collapse one way or another.

Meyers talks about debt

Steve Meyers interviewed on Global Perspectives. Great interview. Click here (about 12 min long).

Steve states the big problem with the US: we borrow to pay the interest on debt we already have. Enough said. It is a matter of time.

The US is insolvent. The whole world is insolvent.

Steve suggests holding your core gold and silver positions. Groovygirl agrees.

July 18, 2011

Phone hacking scandal

Filed under: Financial Talking Heads, Odds 'n ends — totallygroovygirlfriday @ 3:25 pm

In case you haven’t heard, since all Murdoch US news publications and TV have blacked out the story…including the WSJ; there is a huge phone hacking scandal going on in England. First, two top Murdoch directors have been arrested and resigned last week, then two heads of Scotland Yard have resigned today. News of the World closed its doors. Now, the whistle-blower is found dead? Can’t make this stuff up, click here.

Can’t wait until this moves to Murdoch’s US holdings or “brain room”….this FOX producer should be careful, apparently whistle blowers wind up dead. More former employees talk about Black Ops at HQ, click here. Is Murdoch running a global news organization or Blackwater?

“You provide the prose, I will provide the war.”

London trader

Filed under: Gold and Silver Investing — totallygroovygirlfriday @ 2:47 pm

London Trader gives his short term view on gold and silver via KWN. Click here.

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