muses of the moment

September 17, 2011

Saturday afternoon post

Filed under: Odds 'n ends, Permaculture — totallygroovygirlfriday @ 6:59 pm

Since groovygirl is into permiculture and self-sufficiency, she will share this quote:

There are two dangers in not owning a farm: the belief that heat comes from the furnace and food comes from the supermarket.

– Aldo Leopold

Groovygirl believes that long-term physical gold and silver may keep your savings secure from the unwise fiscal polices of government, but during that time of unwise decisions, what will you do for heat, shelter, and food? You will either spend your gold to survive, or you may prepare to become more and more self-reliant. Self-sufficiency doesn’t necessarily require money, but community, skill and sweat.

Blowing bubbles

Filed under: Housing Market, The Banking Crisis, US Government Debt — totallygroovygirlfriday @ 8:29 am

Bubbles pop.

Click here for an update on just one of many bubbles on the globe. College debt bubble.

This rate is horrifying.  The ways these are measured are reflected by two-year default cohorts so you have 15 percent of the entire group defaulting within two-years!  The real default rate is much worse if we tracked these out for the life of the loan.

So, if young people can’t get a job, but still have to pay their loans back (racking up interest) (and/or default on their loans) and ruin their credit, who is going to qualify for a mortgage to buy all the boomers’ homes hitting the market in the next 5-20 years?

Side musing: Groovygirl believes it is a CRIME that you can not include student loans in a bankruptcy. That change in the bankruptcy law in 2005 made all people with student loans potential indentured slaves for life. Post-grad students will figure this out and just stop paying when it gets to be too much and their credit is ruined anyway.

All Quiet on the European Front

Way too quiet. Groovygirl was very concerned on Friday when the European markets were so quiet, since, you know, Greece will run out of cash next week. Maybe Sunday evening will be evenfully?

Click here for Notes from the Underground. (Make sure you read the whole article and click the link to Ambrose’s post about China selling US Treasuries, not US dollars. Very interesting…..and very telling about China’s larger plan.)

But now, gg understands. Central Banks (but not Canada) are using swap lines, a 90-day swap line window in fact, to kick this can down the road. Swap lines are the only option since no European country that might actually be solvent (Germany) wants to bailout Greece again.

So, 90-days…Martin’s next ECM turning point is Jan. 18, 2012.

But groovygirl’s next question is: are the swap lines large enough to cover the other PIIGS, as they too are going down. So, how many cans will be kicked down the road? Is it possible to kick more than one can at the same time? Oh, gg forgot, the Fed and ECB are borrowing more money into existence for the other PIIGS. More inflation in prices for everyone.

This will not end well.

Side musing: and did you see that bit of news about Austria restricting gold purchases for individuals? Click here. The first of many capital control policies to come and/or forcing the common man to buy paper gold and silver, not physical. Get your physical gold and silver early or make sure you can buy and hold in the future in a non-“first world” country or both (if possible). Repeat after groovygirl: physical gold and silver are not money….:)

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