muses of the moment

January 31, 2014

Latest Blog Post from Martin Armstrong dated January 29, 2014

Filed under: Taxes, The Federal Reserve, The Financial Crisis, US Government Debt — Tags: — totallygroovygirlfriday @ 1:55 am

Click here for Martin Armstrong’s latest blog post entitled Cycles & Obama’s Tax Free Bonds dated January 29, 2014. Groovygirl thought the creation of new bonds was the big news in Obama’s speech this week.

Martin says:

The selling of new tax-free debt long-term regains sovereignty and
eliminates the need for primary dealers who blackmail government. This
is the game changer. It is starting to recognize that there is a debt
crisis, yet do not reform the system, only further its advance. That is
why we will still crash and burn.

January 30, 2014

Gold still holding its own

Filed under: Gold and Silver Investing, Precious metals — totallygroovygirlfriday @ 10:14 am

Update from Jesse with the latest gold and silver charts. Click here.

Latest Blog Post from Martin Armstrong dated January 27, 2014

Filed under: Bank bailout, Safe banks, The Banking Crisis, The Financial Crisis — Tags: — totallygroovygirlfriday @ 9:52 am

Click here for Martin Armstrong’s latest blog post entitled Is It Your Money? Are You Sure? dated January 27, 2014.

This post is not about cash bank runs, but just moving your money to another bank(s). Groovygirl has talked about this before. Another bank crisis will happen. Martin suggests after 2015. And you may lose our money or not have access to it for a period of time (which is the same thing). Money you can not get when you want it is not yours.

The next global banking crisis will be a bail-in. And it will not be announced ahead of time.

Groovygirl has always shared what she had done to help with buffer yourself in this situation. Spread your money over 3 or so banks. If you need an international bank for trading or business, fine, but don’t put everything in one place in one country. Maybe one local bank, one regional, and one national/international, depending on the amount of savings you have.

As a result of MF Global, she also suggests dividing your trading money between 1-2 brokerage houses (ones that don’t clear at the same place) and do not leave money you are not using for trading in those accounts! Trading accounts are for trading money. gg knows this is a pain, but do you want to help protect your money or not? This doesn’t eliminate loses, but it helps protect you, since you must use the banking/brokerage system for business and investing. Some MF Global clients lost access to their money for 3 months to one year. And had to spend money on lawyers to get it all back.

Click here for an article about HSBC dumping small account customer. We saw this is 2008-2010. Banks also called in loans and credit lines. This seems to just be smaller bank accounts.

Latest Blog Post From Martin Armstrong dated January 25, 2014

Filed under: Fiat Currency, The Banking Crisis — Tags: — totallygroovygirlfriday @ 9:36 am

Click here for Martin Armstrong’s latest blog post entitled Electric Money Will Eliminate Bank Runs dated January 25, 2014.

A good post from Martin. He talks about Europe mainly in this article, as the panic is gaining strength there. But groovygirl doesn’t think the US can make a smooth transition to electric money until this hacking situation is under control. Europe has the chip system, not swipe cards, so they are not as vulnerable to hacking (for now). Although gg agrees with Martin’s thought process that electric money will cut bank runs (the main point controlling cash movement) she thinks the problem of electronic theft (especially in the US from recent events) must be aggressively addressed. Confidence is key to a move to electric currency. Millions of people have been affected in recent months. They may or may not have lost actual money, but many went to use their cards (at Holiday time) and couldn’t because their bank had closed and reissued cards without telling them. That’s a major loss of confidence point in the system.

January 26, 2014

Lesson #2

Filed under: Odds 'n ends — totallygroovygirlfriday @ 1:27 am

January 25, 2014

Fear

Filed under: Odds 'n ends — totallygroovygirlfriday @ 1:43 am

groovygrirl thought this opt-ed from the NYT on fear and the state was very interesting.

Click here.

Ladies and Gentlemen, lean in.

During this paradigm shift that is in the process of effecting, modifying, and changing every thing in our society, culture, and government; fear is the real enemy. If you deal with your fear, you will get through this without a problem, and probably come out better. If you don’t, you will get stuck and become angry, frustrated and depressed. Understanding, naming, and facing your fear, is the key to getting through this winter cycle, decline, reset, or whatever you want to call it. It is way beyond economic. groovygirl can not emphasize this fear issue enough.

It doesn’t take money or stored food to conquer fear. It takes your mind. No amount of money, gold, or food will help you, if you let fear control your actions. There are wealthy, secure people who are fearful every day of their life. That is a product of their reaction to their emotions, not their real circumstances. Fearful people automatically limit their options, and end up taking emotionally driven, stupid actions.

Fear can controls governments, companies, institutions, and cultures.

Here are some statements about fear to help open your mind about yourself and view others’ reactions in a new light.

Hostility is remembered pain and the desire to get even.

Fear is the anticipation of pain in the future.

Guilt is self-directed pain when you blame yourself.

Depression is the depletion of energy as a result of all of the above.

pg. 17, Deepak and Gotham Chopra, The Seven Spiritual Laws of Super Heros.

Fear (and especially fear of death) makes us less tolerant of people who are different from ourselves. It makes us incapable of “seeing things from his point of view” and we lose any possible empathy and compassion. Communciation breaks down. This truth coupled with group think has led to every genocide in history.

A quick, easy action to take when you feel fearful is breathe. Even one deep breath can make a difference. Breathing lowers your stress level and focuses your attention on an internal simple action not emotional response to outward pressure. It gives your mind the room to evaluate the current moment based on truth, not your automatic, emotional-based reaction.

Another quick action to put fear in check is to focus on the now. If you are overcome by fear of the future or pain of the past, focus on the fact that you are OK right now in this moment (you may want to repeat this to yourself). This will provide a secure basis and give your mind room for options about how to make the future less fearful and the past less painful.

Side musing: now, if you have a relationship with an all-knowing and all-powerful God, like gg does, you can stop being anxious and rest in His arms (Psalm 46:10). But you still do the exact same things: breathe and focus in the moment.

January 24, 2014

Telling the money lie

Filed under: Odds 'n ends — totallygroovygirlfriday @ 3:11 am

Totallygroovygirlfriday thought this 20-min video entitled 4 Money Beliefs Keeping You Broke from Mario Forleo was just great! Click here for the youtube version and here for her blog.

If you are dealing with debt or thinking about investing, these four beliefs about money might be holding you back from taking action.

Belief 1: Someone else will take care of it for me.

When you hold this belief, you give away your financial power and you lose a precious commodity: time. groovygirl’s main reasons for getting ahold of her finances, creating a long-term plan, and educating herself about investing were self-sufficiency and taking back control. There are many things in life you can’t control, your finances need not be one of them.

Belief #2: I am not good with money.

This belief automatically limits financial options. groovygirl was not born with knowledge about investing (and she certainly doesn’t know it all right now). She has been in debt at times in her life, just like everyone else on the planet. The difference is she didn’t let her mistakes go to waste. It was an opportunity to learn how to do things better the next time and ask better questions of people who were investing successfully. Mistakes are not failures if they propel you to learn more and do better. They are failures if you give up when they happen. If you fear failure or looking like an idiot, you will limit yourself in every area of your life, not just money.

Belief #3: People with money are greedy.

This is a pretty common assumption. groovygirl has met greedy rich people and greedy poor people. She has also met generous rich people and generous poor people. Greed has nothing to do with money. The only thing money does is amplify the character of a person. If people are greedy, more money will make them more greedy. If they are insecure, more money will make them more insecure, and so on. If they are generous and happy, more money will make them more generous and happy. That is why if you do not learn to give away money when you are poor (conquer greediness), you will never get any money to give away when you are rich.

This is the first and most important rule of investing. Give some money away. groovygirlfriday can not emphasize enough the power of giving. It is totally freeing.

Belief #4: I’m not ____ enough.

Such as, I am not smart enough or I don’t have the right education/background, etc. Again, totally limiting statements. If you wait to become smart enough or have enough time or have the right background or know the right people, you will never get out of debt and/or invest. All those limiting things: education, contacts, time, even money, all come together once you commit to moving forward. It is AMAZING how this happens. Totallygroovygirl has spent the last 20 years watching this happen in her own life. The only thing gg has done consistently is take the next step. Everything else has fallen into place from that little continuous action. Do the next thing.

January 22, 2014

News from Pimco

Filed under: Economic Crisis, Global Debt, Martin Armstrong, US Government Debt — totallygroovygirlfriday @ 4:42 am

Much more interesting than the departure of El-Erian is two other little tidbits in this article that you may or may not be aware of. Click here.

Over all, investors pulled $47 billion from Pimco funds last year. It
was the first year on record that Pimco had net annual outflows.

This confirms Martin Armstrong’s prediction of capital flight from bonds to something else.

A statement from the company said that Mr. El-Erian would leave Pimco in
March but keep some leadership roles with Pimco’s parent company, the
German insurer Allianz.

Pimco is not about bonds, it is about insurance. The insurance industry is losing money. The insurance industry is one of the many familiar institutions that will have to figure out another way to make money or make much less money in this Great Reset.

Banking, insurance, and global government debt are closely intertwined. A crack in one affects all others.

Business models that worked for the last 50-75 years will not work as they did moving forward. Those that adapt will survive, those that don’t, will not. Bail-outs and bail-ins only buy time, they are not new business models (contrary to what CEOs may think).

Derivatives

Derivatives: “gone, but not forgotten”. Uh, no, that’s “forgotten, but not gone”. In fact, there are more than in 2007.

Click here for a taste of Paul Singer’s speech at Davos this week on the global derivative problem that we still haven’t dealt with. He will offer solutions. gg guesses Mr. Singer doesn’t know that they already have a solution for the next derivative-related contagion: bail in.

Click here for another legal case still going on between JPM and a German transport provider from the last crash.

If only Germany had some physical gold in their possession as a hedge during the next crash. Oh, yes, they asked for it back. gg wonders how that is going…. click here.

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