muses of the moment

June 9, 2015

Warren Pollock

Filed under: Economic Crisis, Precious metals, The Dollar Crisis, The Financial Crisis — totallygroovygirlfriday @ 8:35 pm

gg loves Warren Pollock. Another great interview here on usawatchdog.com.

December 12, 2014

Let the games begin

The stars are aligning for another bank crisis and/or credit freeze and/or global debt collapse. Banks don’t want large cash deposits. Click here.

Banks are claiming that it is because of the Frank-Dodd rules, which really are so thin now, that this argument just doesn’t hold water. In addition, what little worry banks had about actually being responsible for their depositors money just got voted out by the new spending bill tonight (December 11, 2014). So, gg thinks that the big banks are getting prepared. They are lowering the cash they may need to return to customers during a crisis and anything beyond their capacity to produce, they are putting on the government’s shoulders. Or someone to blame for lack of cash for depositors.

Here is a good interview over at usawatchdog.com. Click here.

Although the stock market is going well. That’s about it. Oil is down putting major pressure on the US oil industry which is the only thing going well in the last 4 years. gg sees a major debt squeeze here if oil stays under $70 for the next 12 months. Debt has to be paid whether the oil well is running or not. Shutting down wells doesn’t pay off the bank, it just cuts payroll and hurts local economies.

Derivatives….the thing the big banks want the government to cover if (when) they blow up.

Derivatives, take your pick. Auto loans (maxed out), commodities (oil), stocks, government debt, Europe (still not fixed), China (slowing), emerging markets, and of course, currencies (very out of balance the last 8 months). Currencies are the largest derivative market. One or more can blow up at anytime and trigger a chain event. (Could be blowing up as we speak, but the chain reaction to multiple markets causes the crisis.) And the banks know that.

The good news is that since the government will cover any derivative losses for the banks, you will not lose money on deposit. May have to wait to withdraw it. (Money you can on get to, is not your money). Probably lose broker/invested money, it’s not covered. Groovygirl has suggested from the beginning to have investment funds with 2-3 different brokerage houses and then cash with 2-3 banks. That’s personal and business accounts. It’s extra accounting, but may reduce risk and at least have one account you can access immediately to keep things going in a crisis event.

Bad news is that the government will “print” to cover and you will be ultimately responsible for it through taxes, currency value, or perhaps even a brand new currency to restructure all the US debt.

This will not end well.

Make sure you are as protected as much as you can be. You can not control derivatives or government votes or market crisis, but you can control your money and finances.

I suggest to you that the next crisis will not be called a financial crisis. It will initially be labeled something else to keep people from assuming it is an event like 2007-2009 as long as possible. As this will cause everyone and anyone to “panic”. The time to prepare is yesterday, not tomorrow.

November 4, 2014

Warren Pollock on usawatchdog.com

Warren Pollock has a new interview out!! Great info. Click here for Warren Pollock’s video interview on usawatchdog.com.

gg favorite’s line: the less flexible you are, the more reliant you are on government, the harder it will be. No matter what level of crisis you are preparing for, that truth remains…truth.

July 19, 2014

Double-standard

Filed under: Economic Crisis, MF Global bankruptcy, Odds 'n ends — totallygroovygirlfriday @ 1:11 am

The leaked international trade agreement or TISA from June 2014, click here, seems to be a double standard. Individuals can not move money internationally, avoid taxes, heavy fees or trust their info is private, but too big to fail can.

I think international “sanctions” will be a guise for controlling individual money, but the too big to fail will continue to move money, launder money, and collect data. Brilliant.

On a positive note, more individuals will be forced to invest money locally. It is estimated that 50-90% of invested money is lost when it has to “go through” a third party’s hands, such as bank, broker, government, mutual fund, hedge fund, etc. Direct money from you to your local store, tradesman or business ends up creating more capital in the big picture. One reason why groovygirl likes this direct internet fund/business investing trend. But you still have to do your due diligence.

May 16, 2014

HFT

Filed under: Economic Crisis, The Financial Crisis — totallygroovygirlfriday @ 1:48 am

Pam Martens has another article out about HFT. Click here.

March 31, 2014

Latest blog post by Martin Armstrong dated March 31, 2014

Click here for Martin Armstrong’s latest blog post entitled Is Obama Just Outclassed by Putin? dated March 31, 2014.

gg says: groovygirl isn’t sure if Obama is outclassed by Putin, but he is certainly out-statemened. Is that a word? What gg means is that, say what you will about Russia/communism/etc, Putin is one of the best statesmen and politicians ever seen of late. He is strategic. And you can bet he doesn’t do anything without exploring and anticipating all the possibilities and consequences ahead of time. He is well-prepared, and his actions are well-thought out. That’s something the US seems to have fallen short on.

Putin also has something on his global side that the US doesn’t seem to consider, growing hatred of America’s butting into everyone’s business under the guise of the “war on terror”. (He also has Russian nationaliam from within.) There was a time, when the USSR was seen as a force to be protected from. Now, that may or may not be true, but it is not Russia that is getting bad global press about eavesdropping on Merkel’s phone calls, it is the US. This hypocrisy is not lost on the rest of the world, and it is and will be used by Putin to his every advantage. And being the “underdog” is also in Putin’s favor.

This little spat with Putin is very concerning to groovygirl. It is big. At best, it will bring together the alternative trading currency and SWIFT systems that have started in Asia much quicker than thought. At the worst, it will start a regional war that the US is sure to lose and will not be backed by the people of the US. If Obama does not handle this Putin thing well and start aggressively rebuilding relations with Europe, Asia, and South America (instead of running to Saudi Arabia), this will be the middle of the big wave that changes global power not by war, but by currency and capital. gg doesn’t know who is advising Obama on foreign relations, but he is ill-advised. Putin is using the exact same tactic that the US used prior to the fall of Russia: protecting the little guy/country from the big, bad empire. And it will work for him just as it worked for the US.

The US can not continue sanctions, it will just drive the BRICS and their new trading system closer to a global alternative and cause even more global capital to go into hiding. The US can not use military action, the world and the US people are weary of long invasions. The US must take drastic and targeted actions to restore trust that it is a world leader by example, not a tsar and tyrant. The eroding of trust and confidence is at the core of this decentralizing cycle, causing all sorts of issues from global currency to capital flow to riots and revolutions to stock markets to NSA to government coups. It is a lack of confidence that is causing all the long time systems and institutions to be questioned, and in some cases, challenged.

This will be very interesting to watch. 

The big question is will these systems be torn down and rebuilt into something balanced and fair and really better, or will that be in name only and be tyranny under a more peaceful and tranquil guise? Once people get power, no matter how noble the original thought, they tend to try and keep that power no matter what. Even if they have abandoned the noble thoughts long ago. Power comes and goes. But character, the essence of man/woman when money, power and status are stripped away. Things like the search for truth, continuing education, openness, empathy; these things should not be changeable or put away when one’s power is threatened. These things are stoic, intertwined with the character, unwavering.

meekness is not weakness or powerlessness, but power under control.

March 8, 2014

Latest Blog Post from Martin Armstrong dated March 8, 2014

Filed under: Economic Crisis, Martin Armstrong, Odds 'n ends — totallygroovygirlfriday @ 10:13 pm

Click here for Martin Armstrong’s latest blog post entitled Is Obama Just Insane? dated March 8, 2014.

gg says: Obama’s strong suit has never been international relations. Putin’s strong point has always been international relations. Perhaps, Obama wants a distraction? Doesn’t matter, as Martin states, this situation has the potential to escalate very rapidly.

March 4, 2014

Pensions

Filed under: Credit Derivatives, Economic Crisis, Taxes, The Banking Crisis, The Financial Crisis — totallygroovygirlfriday @ 10:14 am

Click here for a very good article describing why city, county, and state pensions could be in trouble. derivative bets. Although this article about PIMCO and the recent departure of Mohamed El-Erianas, this article goes into detail about how derivative bets are putting pressure local and state balance sheets. The first thing to be “restructured” is pensions. When cities, counties, and states are in trouble, taxes go up and services go down, and maintenance items are put on the back burner.

This paragraph from the article was very interesting. Clearly shows what will implode PIMCO:

According to the publication of Morningstar Top Holdings snapshot, about three quarters of PIMCO derivatives were
bets on European currency financial futures and the balance was on U.S.
dollar futures. Some of PIMCO holdings have a “negative cash position”
that usually represents short selling — short sale being a speculative investment that profits when prices fall. The Total Fund portfolio looks similar to leveraged hedge fund portfolio. PIMCO
derivatives seem all about “maximum return” and not very much about
“preservation of capital and prudent investment management.”

Groovygirl believes that the combination of derivative bets (balance sheet problem now coming due) and lower tax revenue from falling property values (the housing market decline) and falling sales taxes from lower economic activity coupled with long-term maintenance aged-related expenses (income sheet problem) has brought these issues to the fore-front. Every city is in involved derivatives, it is how cities kept pension funds in the black at least on paper that they raided long ago. Cities can’t print money.

You can hide a balance sheet problem with more revenue. But when revenue falls or expenses increase your balance sheet problem becomes unavoidable. This is accounting 101, but no one in government seems care. Juggling accounting, not prudent governing, seems to be just doing business. “Hiding a poor balance sheet” is not a long term business plan.

February 22, 2014

We’re shocked, shocked….

Filed under: Economic Crisis, The Banking Crisis, The Federal Reserve — totallygroovygirlfriday @ 2:25 pm

….to find LIBOR rigging going on. Click here. Well, groovygirl is still wondering who is currently doing the rigging as we have not seen extreme movements up or down in LIBOR.

February 21, 2014

John Williams with shadowstats.com

John Williams has his latest real stats out. You pay for the detail, well worth the money, but here is the punch line:

Strongest Signal for a Recession Since September 2007
– January Real Retail Sales Activity Plunged by 0.6% for the Month
– Unadjusted Monthly January 0.4% CPI Inflation Squashed to 0.1% by Seasonal Adjustments
– January Annual Inflation: 1.6% (CPI-U), 1.7% (CPI-W), 9.2% (ShadowStats)

John uses the original inflation index formula, before gov started jacking with it. Did your wages/income go up by 9% to meet the real inflation index? groovygirl’s didn’t. Who needs hyperinflation when wages are down or flat or zero because you are unemployed coupled with a 9% real inflation rate and climbing? In the main street household, that can feel like hyperinflation pretty quick. At the very least, it means less consumer spending, saving, and debt for big purchases like houses, cars, and student loans.

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