muses of the moment

July 5, 2012

Another release from Martin Armstrong dated July 4, 2012

Click here for Martin’s latest release entitled Hyperinflation: Why It Can’t Happen in the Core Economy dated July 4, 2012. Good read.

His explanation of sovereign debt collapse still (in gg’s opinion) doesn’t exclude Jim Sinclair’s currency-induced cost push inflation suggestion. He also states that gold is valuable in a sovereign debt collapse.

groovygirl comments:

Another issue that doesn’t get much play: the consumers income to expenses ratio. All prices are high, if your income can not cover them. This is what happened during the Great Depression, which was deflationary in prices. No one could afford to buy any thing, no matter how low the price, because they didn’t have any income.

Today we have the same issue in housing. It doesn’t matter how low mortgage rates are, if you can not get a mortgage. Without mortgages, only cash will work in the housing market. In a market driven by debt for the past 60 years, a further collapse in housing is the logical next step. As Martin states, housing will continue to decline between 2015-2032.



  1. Martin states … “We do not face hyperinflation in Europe or the USA. These are not peripheral economies. These will simply implode into a Sovereign Default. This is far more dangerous for this is what causes war and brings society to the brink of extinction.”

    He then states the future …

    “Gold is still a hedge in ether circumstance. However, the hyperinflation is but a curiosity where as the Sovereign Debt Default wipes out society for a very long time. It is like an Ice Age – nothing grows for quite a while.”

    We are headed to Sovereign Debt Defaults around the globe which will work its way in to World War III. My personal belief is that it will go nucleur … happening even here in the United States. It’s going to get crazy.

    Armstrong’s Economic Confidence Model still states Sept/Oct 2015 as the next major global economic collapse. I think that we will see others happen first (Europe, Spain). I think in 2015 the US and Chinese economies collapse as well bringing the world to its knees.

    Where does that leave us?

    – Have the basics (Water/Food/Shelter)
    – Be ready to evac if necessary or shelter in place
    – Be able to protect yourself and your family.
    – Have money in real assetts
    – Be prayerful!

    Comment by MikePhila — July 5, 2012 @ 1:50 pm

  2. Good list of tasks at the end of your comment.


    Comment by totallygroovygirlfriday — July 5, 2012 @ 2:01 pm

  3. some LaLa Land future of Armstrong’s imagination.


    Comment by chop — July 7, 2012 @ 12:46 pm

  4. Jeff Nielson over at Bullion Bulls Canada has come to the same conclusion as Armstrong. Nielson has been writing about two economic scenarios for the U.S. economy, either a debt-default crash or a hyperinflation death spiral. Jeff is now convinced that the U.S. will experience a debt-default crash.

    “It is not a question of “if” the Sheep finally and totally reject all of this fiat-paper. The only question which remains is how many months until this occurs?”

    “Understand that what looms ahead of us is an economic cataclysm more severe than anything we have even read about in our history books, let alone experienced in our own lives. Understand what it means to “play defense”, and do so now – before it’s too late. Seats still remain in the Financial Lifeboats known as gold and silver, but the Titanic is sinking fast and the party is over.”

    Comment by sw — July 9, 2012 @ 3:07 pm

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