muses of the moment

August 15, 2013

Latest Blog Posts from Martin Armstrong dated August 14, 2013

Click here for Martin Armstrong’s latest blog post entitled Gold Outlook dated August 14, 2013. Includes a ECM chart.

Click here for Martin Armstrong’s latest blog post entitled Bail-In Crisis dated August 14, 2013. This is a good one. He explains how to protect yourself from the next banking crisis. Which will be a bail in, not a bail out. They will cut out the IRS as the middle man this time around 🙂 You have heard this advice from Martin (and gg) before, but it is worth repeating, and repeating. You must take action if you have not already.

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August 1, 2013

Thunder Road

Click here for a link to the most recent Thunder Road Report. It is about 58 pages. Good charts. This report comes from Europe. This issue focuses on the effect or non-effect of Central Banking actions around the globe. They also have a section on inflationary deflation.

July 24, 2013

Very Important

The SEC is issuing warnings about the money market fund industry.

Click here.

There are a few conclusions to draw here.

  • This was a very quiet warning on July 17th. Quiet means we want to have the record we warned you, but we don’t want to start a panic.
  • Too late, gg suspects we start to see the “quiet panic” around August 7th? Just a guess 🙂
  • Money Market Funds collapse because investors need liquidity to cover another collapsed market that is underwater in debt. (i.e. they do not have the capital, assets, or even cash flow, to cover the debt needed to continue business or sustain the market.) This is the way the mortgage crisis moved to completely freeze credit in the US market in 2008-2009 and thus effected every business and market in the US and around the globe.
  • Money market funds are used by all business like a revolving credit card. If it drys up, business and banks must be bailed out to keep normal daily business going, for things such as payroll.
  • If those businesses do not have enough cash to hold them for six months to a year without adequate cash/credit, they go bankrupt, and lay off employees. We saw this in 2008-2010.
  • There will be no bail-out this time around. Your funds will disappear, it will be a bail-in. If you remember, money market funds delayed cash withdrawal requests for up to 6 months the last time around. The only reason it was only 6 months….bail outs, free loans from the government to keep the game going and the sheeple asleep.
  • Notice the time line from the 2007 crash. Stocks/housing market start to decline in fall of 2007, fully clear to all in 2006 that it was coming/in process. Contagion starts to be felt by everyone and all markets by 2008-2009 as major companies/banks go under or require major bailouts. This doesn’t happen over night. It just seems to because the insiders’ panic is not announced or acknowledged or covered-up.
  • We do not know what the catalyst will be this time, but we have several options: muni bond markets, continued European debt implosion, slowdown in China, derivatives from any one of these markets, war/terrorism/Arab Spring, change in law for one of these investment markets, old derivatives from 2008 mortgage crisis that have not been realized. Take your pick.
  • All of the above-mentioned markets (actually all markets tied to debt/margin) are VERY FRAGILE. They will all be severely effected by whatever the catalyst is this time around. That will make this coming collapse in 2015, as suggested by Martin Armstrong, much worse than 2008.

Beware and be prepared. Groovygirl is not suggesting have absolutely no cash in money market funds, just don’t have it all in that type of investment. You are responsible for making the decisions for your own investments.

Side musing: regarding Martin Armstrong’s 2007 turning point. Groovygirl thought it very interesting that major national security websites and data systems were hacked in 2007. Just now being admitted. This could be point the history books point to as the fall of the American Empire (foreign hackers are the Barbarians at the Roman gate) and the official start of the new war: cyber warfare. very interesting. Although it was announced that the Pentagon was hacked. Apparently several other private and government infrastructure sites were hacked including electrical and water infrastructure and NASA, as well as national security sites. The hackers were downloading information and able to view current information for six months before discovery. And they aren’t even sure if it was all the Chinese. This is the new war.

July 5, 2013

Important information from Martin Armstrong (dated July 3, 2013)

Click here from Martin Armstrong on the European timeline. From Martin: “Once the general understanding that the German banks are really in trouble hits home, there will be no place for capital to hide inside the Euro.”

Click here for a prelude to Martin’s upcoming Asset Allocation report (coming out in September?).

From the link above:

We have received numerous requests from old institutional clients that they need help on asset allocation. Even the famous All Weather Bridgewater Fund used by pension funds is under water. The asset allocation modeling that we have done for institutional clients over the years is adopting the most dramatic changes how portfolios should be restructured to survive the 2015-2020 period. We are going to see a lot of banks fall. This will include some of the most famous names that will shock confidence right down to its root core. The currencies will go wild and we are NOT going to even see the standard Flight to Quality rushing to government bonds that dominated the 2007-2011 downturn.

June 25, 2013

Warning from Jim Sinclair

Must read! He refers to GEAB and latest LEAP 2020, click here.

–  end 2013, financial impact: collapse of financial markets especially in the US and Japan. Banks can no longer be saved by States and bail-ins are put in place;

–  end 2013-2014, spreading to the real economy: the financial impasse causes/reveals a major world recession and the reduction of international trade;

–  2014, social impact: the economic deterioration causes unemployment to explode, in the United States the dollar’s decline lowers the standard of living, riots mushroom everywhere;

–  2014, political crisis: the governments of the most affected countries are under fire for their handling of the crisis, forced resignations and early elections are expected, if not coups;

–  2014-2015, international management of the crisis: together Euroland and the BRICS impose a new international monetary system and lay down the bases of a new global governance;

June 24, 2013

Capital Controls

Filed under: Bailout Nation, Economic Crisis, Fiat Currency, The Banking Crisis, The Financial Crisis — totallygroovygirlfriday @ 11:17 am

China is trying to control flight of cash and capital. Click here.

June 18, 2013

Cyprus is the template

Filed under: Bailout Nation, Bank bailout, Credit Derivatives, European Debt Implosion, The Banking Crisis — totallygroovygirlfriday @ 7:02 pm

Click here for the ongoing story of how the Cyprus bailout is really going. Punch line: Cyprus is selling its natural resources, infrastructure, and any other asset not tied down. This article also describes what is happening to the depositors, creditors, etc. Or, gg should say, preferred creditors 🙂

June 12, 2013

Pay Attention!

Remember when groovygirl said that every industry not based on tangible assets would fail during this debt collapse cycle?

Insurance

Insurance industry has acted like and been used as the banking industry for the last 40 years or so, click here:

Mr. Lawsky said he was struck by similarities between what the life insurers were doing now and the issuing of structured mortgage securities in the run-up to the financial crisis of 2008.

Banking

Remember when groovygirl told you that the swaps and derivatives (especially those tied to the mortgage-backed securities) were NOT resolved and will blow up again?

Seven banks, the ones that hold the majority of these swaps, get a 2 year reprieve. Click here. They are getting a reprieve because if they had to mark to market on their books, they would be bankrupt. Even after applying the new creative accounting rules. Yes, that is how bad it is.

Government bought and paid for, click here.

Dodd-Frank can never be applied to the too big to jail/fail banks. It would cause the world to see that the US banking system is already done, failed, collapsed, a figment of market’s imagination.

Only a matter of time….

June 4, 2013

“Systemically Important”

Filed under: Bailout Nation, Bank bailout, Dollar Crisis, Economic Crisis, Odds 'n ends, The Banking Crisis — totallygroovygirlfriday @ 11:21 am

New lists coming out of systemically important banks and non-banks. Your investor funds in “unsystemically important” entities will be “bailed in”. Click here. It’s all here, exactly what will happen in the next leg down of the global debt collapse.

May 28, 2013

Derivatives

That derivative dragon is rearing its ugly head again.

Click here.

But after lobbying from financial institutions, the CFTC lowered the requirement to two banks. CFTC officials claim the standard will increase to three banks in about 15 months.

Why would the CTFC LOWER standards? Because the banks would be broke if these derivatives, that have increased in the last 5 years, were counted as even remotely close to mark to market, all banks and their counter-parties (insurance companies, Fannie and Freddie, pension funds, sovereign funds, you, etc.) would be BROKE.

Guys, the government and banks can modify all the accounting rules they want. They did the same thing up to 2007, and it did not keep them from collapsing and taking the entire system with it. It was then that the government stepped in and printed money, which they are still doing today. The next time around, it will be a bail-in of your investments.

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