muses of the moment

January 9, 2013

Latest Blog Post from Martin Armstrong dated Janurary 9, 2013

Filed under: Martin Armstrong, Odds 'n ends — Tags: — totallygroovygirlfriday @ 4:03 pm

Click here for Martin Armstrong’s latest blog post entitled The Real Threat of War-2014 dated January 9, 2013.



  1. Read the links as well. One of the best articles so far.

    Comment by MikePhila — January 10, 2013 @ 10:18 am

  2. GG,

    We should be looking and talking about how to prepare for deflation instead of hyperinflation according to Armstrong. What can one do to prepare for a deflationary economy?

    Comment by MikePhila — January 10, 2013 @ 12:29 pm

  3. Mike,

    This discussion is a distraction from the real issue. Debt is collapsing causing a loss of confidence in global financial system. This will lead to every man for himself reaction whether you are a retiree, country or business. Every man for himself will cause a global slowdown and reinforcement of the debt collapse. The reaction to a global debt collapse is the same no matter what policies governments and central banks use to try and “fight it”.

    Hyperinflation or deflation is the same thing to the wage earner or fixed income retiree, which most of what gg’s readers are. Your take home pay is less than your expenses and the gap will become larger and larger. The preparation is the same unless you are very wealthy. If you are wealthy…move to another country. If you are not, pay down debt and save. (If you have debt, that debt should be able to produce enough income to cover the interest expense and pay it down at a fast rate.) Get your living expenses as low as possible. Save money. That money should be 20% physical gold and silver, some cash, and whatever portion of other investments you feel are at your risk level for your age.

    In a hyperinflation or a deflation, economy goes underground. There is a loss of confidence in the system. Think about how illegal immigrants work, live, and raise families? They do it in the underground economy. I am not saying pull everything out, I am saying move some things around so you have tangible assets to use yourself or barter to live in extreme economic conditions: either hyperinflation or deflation. Deflation means there is no money and hyperinflation means there is too much money (it has no value). Both conditions raise expenses relative to earning capacity for everyone. To gg, the preps are the same.

    I have often stated that we may experience one and then the other in a short period of time. That makes it hard to put savings more in on the cash side vs the physical asset side. Since there seems to be a difference of opinion, split it 50/50.

    Everyone needs to prepare for a severe downturn in real economic activity (more of what we have been experiencing), high unemployment, higher taxes (or fees not officially called taxes, like health care insurance), and higher living and business expenses, along with higher cost of money (for everyone but the banks and politically connected.)

    Either a deflation or a hyperinflation, people who need to unload assets, do so at fire sale prices. Your savings can be used to buy income-producing assets at fire sale prices. During the Great Depression, the wealthy that had cash, bought businesses, real estate, and other tangible assets at cheap, cheap prices. They ended up coming out of the Depression more wealthy than before. The SAME thing happened in Berlin, but for them, it was gold that bought the assets, because of hyperinflation in the underlying currency. A winter cycle is a winter cycle, whether it is hyperinflation or deflation.

    Hope that helps.


    Comment by totallygroovygirlfriday — January 10, 2013 @ 5:11 pm

  4. Gg,

    Good stuff once again!
    I’m going to attend Martins conference in Philly. I’ll give everyone a debrief when it’s done.

    Comment by MikePhila — January 13, 2013 @ 12:51 pm

  5. Cool, look forward to it!


    Comment by totallygroovygirlfriday — January 13, 2013 @ 10:14 pm

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