muses of the moment

April 16, 2013

The Picture of the US Dollar

Filed under: Dollar Crisis, Taxes, US Government Debt — totallygroovygirlfriday @ 11:24 am

Groovygirl thought this picture of the US Dollar (via zerohedge) and how our tax dollars are spent was very informative on many levels. Click here.

  • Clearly shows what will get squeezed first, the two biggest spenders.
  • 6% net interest may be the current stat but it is optimistic for the future.
  • An increase in taxes can not sustain the US dollar or US debt.
  • Unsustainable….

March 19, 2013

Cyprus update

Well, that went well….

Nigel Farage gives some not-so-subtle advice….get your money out of Europe!

Now, I am sure British banks are more than willing to take frightened European depositors’ money for safe keeping, but the Cyprus main attraction this week shows us two things: a small country can do major damage to the global banking system and nothing is off the table to preserve the failing banking and debt system. That means any country, any bank, anywhere….

Click here.

Now that apparently the IMF has back-tracked from the “one-time-tax-on” deposits. Look for a reprieve before they try something else the next crisis. Such as, they will not announce it beforehand?

Can’t wait for the 2014 German election!

You will have to take steps to preserve the purchasing power of your own savings.

Next bank run. New Zealand. Click here. Question: why would any politician look at the global political reaction to Cyprus this week and say, “hey, let’s do something like that”?

In other news, gold looks good.

March 8, 2013

It’s all about the spread

This link describes why a debt collapse, whether it errs on the inflation or deflation side, always creates an economic depression, no matter what the currency’s real value is.

Side musing: remember this link is using the official CPI, which is not the real inflation rate.

It is about the widening spread between wages and living expenses. And of course, when wages fall, income taxes fall, and then government raises taxes, causing the spread to widen even more.

And then, factor in wealth, it all just gets worse. Click here.

February 27, 2013

Lie-bor

Filed under: Economic Crisis, Global Debt, Odds 'n ends, Taxes, US Government Debt — totallygroovygirlfriday @ 2:33 pm

The largest financial crime in history that has never been acknowledged or prosecuted.

Here is a very extensive article on Libor. It covers the impact on the State of California and the cities of California. And the scam that they are running on their investors and their taxpayers. By the way, this is not “fixed”, even though the Libor scam has been exposed.

States and Cities are still vulnerable to high interest rates. And CA is like a whole country in its economy and debt, bigger than Greece. This is another way that debt is being passed to taxpayers and the pensioners will get screwed out of money to pay investors.

This systemic problem of state and city debt will not be fixed until it collapses and resets.

February 18, 2013

Kunstlercast with Nicole Foss

groovygirl finally was able to listen to all of the January 31, 2013 podcast with Nicole Foss (about an hour). Click here.

Very good interview. Nicole is full of good information. Note: Nicole is in the deflationary depression camp.

The best idea from the interview: technology without energy is just expensive artwork.

GEAB N72 is out

LEAP 2020 has just released a new report. They have a detailed summary for free here.

Second half of 2013 still doesn’t look good. Very important link to read. It is from an European perspective. Melt this with US perspective (the real perspective, not the MSM Disney one) and you probably have the truth.

With no surprise, one of the powerful factors which will accelerate the United States’ loss of influence in the world relates to oil. In fact we are witnessing the last days of the petrodollar, the key element of US domination. This is why we have decided to deal with the world oil problem at length in this GEAB. We are also publishing the GEAB Dollar-Index and Euro-Index to follow currency developments more reliably in the current monetary storm. Finally, as usual, we finish with the GlobalEurometre.

groovygirl says: gg has mentioned before that the petro-dollar is the source that will lead to the collapse in confidence in the dollar and end its reign as a reserve currency.  We are already seeing this. The currency war is on between those holding dollars and those that print dollars. The US dollar either will be devalued and force the other global currencies to crash or it is “revalued” as part of the global trading currency those main purpose will be to value energy and oil. The longer the US waits to “revalue”, and the less negotiating power they will have. Neither option will fair well for the national economy in the US. High energy prices, and we have enjoyed cheap energy prices due to the position of US dollar, are over.

The US economy is based on cheap energy, a loss of that means a long decline in the economy. On top of that, this will occur during a loss of confidence in the US ability to repay it debt. Therefore, the new debt will be hard to get or expensive, so a new infrastructure that is not dependent on cheap energy will be expensive, a long process, and/or impossible.  All of this means an extension of what we have seen already, but worse: high unemployment, higher cost of living expenses, slow economic growth, if any, more government fees and taxes to make up short falls in fallen tax revenues.

Do you see how just a modification in the petro-dollar can cause a crash in the economy, high inflation in prices, and a long-term depression (or worsening of what we are in now)? If people are restless now, they will be despondent under worse circumstances. This slope to the bottom starts with pressure on the petro-dollar.

February 11, 2013

Latest Blog Post from Martin Armstrong dated February 11, 2013

Filed under: Martin Armstrong, Taxes, US Government Debt — Tags: — totallygroovygirlfriday @ 3:38 pm

Click here for Martin Armstrong’s latest blog posted entitled USA in Self-Destruct Mode dated February 11, 2013.

The United States is now forcing people to resign their citizenship for they cannot even function any more outside the USA.

It used to be that every one wanted to become a US citizen, it was a highly valued asset. The tide is changing. Now, they want to give up citizenship.

January 31, 2013

New Healthcare Law Update

Filed under: Odds 'n ends, Taxes — totallygroovygirlfriday @ 3:19 pm

Apparently the Unions are not keen on the new healthcare law (cough, tax) now that someone has actually read it.

(groovygirl is referring to this new law as a tax because the Supreme Court approved the law based on it defined as a tax, not a choice. So, it is a tax.)

Click here.

gg has heard a rumor that there is some disagreement on the implementation of the tax law, so there is a current “delay” in the process.

January 15, 2013

Martin Armstrong comments on the Real Estate Cycle

Filed under: Housing Market, Martin Armstrong, Taxes, US Government Debt — Tags: — totallygroovygirlfriday @ 11:43 am

Click here for Martin’s blog post dated January 15, 2013.

And this one about an old “tax” tactic from the 1970’s and 1990’s. Government never thinks up anything new, they are very predictable in their reactions to each crisis.

December 26, 2012

Latest Blog Post from Martin Armstrong dated December 26, 2012

Filed under: Martin Armstrong, Taxes — Tags: — totallygroovygirlfriday @ 6:44 pm

Click here for Martin Armstrong’s latest blog post entitled Fiscal Cliff of Tax Increases Near dated December 26, 2012. He has quite a few posts in the last several days, check them out.

Martin thinks that a deal is far from reality.

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