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.

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May 4, 2015

And everything can be a derivative…

Make your bets now.

Click here for P2P derivatives.

It was just a matter of time before a New York/London mathematician got a hold of something that might actually work past the debt system breakdown.

BTW, you can bypass the internet, banks, and Wall Street and starve them of all money and fees and help out worthy creditors by loaning money directly to a person with integrity that you know and trust. You can charge them a reasonable interest rate, get income, no one ships fees to Wall Street, no one creates derivatives that blow up whole markets, and you hold the collateral. If they don’t pay you back….you get the collateral and/or you get to deduct it as a loss. And you know where they live.

This is how a relative of gg’s bought their first house in 1952 with a 15-year loan to an individual who held a lien against the house.

But you must find a person of integrity ūüôā

And, for those you know without integrity….

Side musing: if you have a “friend” that you can’t stand and want to get rid of….loan them money. You may not see your money again, but you will never see them again.

Gifts: you can also just give money to people, up to $14,000 per year per person without a tax liability on either side. If you want to see your character and/or the character of another person, don’t lend them money, give them money.

April 22, 2015

Regarding inflation vs. deflation

There is an ongoing debate about what the US is going thru and what it will go thru: inflation or deflation?

Martin Armstrong says we are in a deflationary monetary cycle. And in the big picture, he is right.

However,

Groovygirl has always said, it depends where you are. And gg has always said, it doesn’t matter how cheap a product/service is, if you don’t have any money to buy it. It is always about can your wages buy the necessaries or not? It really doesn’t matter the actual price, it’s the relation. Can you pay cash to buy a car or must you borrow? Can you borrow? Can you afford the monthly payment? A house? College? Health care? What percentage of your monthly income is spent on debt? 10%, 25%, 50%? If your wages go down, it could turn into 75% overnight?

I remember my grandfather talking about the Depression. He said he was much better off than many people because he had a steady job. He didn’t get a raise for 10 years, but he could save money and buy a car, because prices were low or relatively lower than before 1929/1930. He didn’t have to go in debt to survive. He could pay for food and rental housing and some extras like a car. And he wasn’t ever unemployed during that time.

People were in trouble during the Depression, because they couldn’t get a job, couldn’t earn enough (Farmers) to buy food and shelter, or couldn’t keep a steady income over that 10-year period and fell into debt to buy necessities. So, prices were expensive to them and many were starving and homeless.

It’s the relation of wages (employment) to prices. That’s why people are protesting for a higher minimum wage.

(That’s why people are leaving California with its high state income taxes and high property taxes for the Midwest. That’s why seniors are flocking to states, like Florida, that have no state taxes. People that can move are moving. They can do math and they can save 10-30% simply by moving to a different state and might get a better or steady job.)

But in Germany in the 1930’s, it was all about inflation. But inflation in prices didn’t keep up with wages (because of the country’s debt and their short-term solution of currency manipulation). It was still about the disconnect between wages and prices, but this time is was an inflationary macro environment.

So, structure investments, jobs, and assets to bring in income/gains that will keep up with prices in your home currency. And don’t forget about taxes. Income taxes and other taxes were not as extensive in the 1930’s as they are now. They must be considered in the “price” of living and assume they will go up.

April 21, 2015

Latest Video Interview from Martin Armstrong

Click here for latest interview with Martin Armstrong dated April 12, 2015 with uswatchdog.com.

groovygirl thought this interview was a good, compact form of Martin’s October 2015 Turning Point and the following impact, what he is calling the “Big Bang” or blow up/reset of global debt.

Quote:

Will the Fed finally raise interest rates?¬† Armstrong contends, ‚ÄúThe Fed will have no real choice. . . . The Fed will come under significant pressure to raise interest rates because the newspapers and Congress will blame them and say they are creating a bubble with low interest rates.¬† The more they raise interest rates, the higher the stock market will go.¬† I know that sounds crazy . . . historically, interest rates bottom with the markets.¬† I mean, you lose confidence and people won‚Äôt borrow.‚ÄĚ

side musing: still the big debate about inflationary or deflationary. Groovygirl still contends that the US will have both, so prepare/hedge for both. GG also believes that parts of the globe will have inflation and other parts will have deflation. Groovygirl thinks this is one of the main reasons that this global debt reset will be so confusing and shocking.

As you know, gg has been into real estate investing lately. A perfect example of inflation and deflation happening at the same time within one market. US high-end real estate asset prices have been increasing and low-end real estate have been collapsing in price. And the mid-range depends on where you are in the US. Whatever market(s) you are investing in, educate yourself and understand all aspects of that market.

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.

April 30, 2014

“Cold war”

groovygirl has been pre-occupied with another investment activity. See previous blog post for the details. Groovygirl will still continue to post about economics, gold and silver, and global debt.

groovygirl has been paying very close attention to the new Cold War with Russia and the crisis in Ukraine.

Click here.

Russia is making friends in the mist of this crisis.

Groovygirl is very concerned about the global economic consequences from this situation regardless of the end result in Ukraine. At the very least, this will speed up the economic alliances and economic separation of the BRICs. The direct trading of currency, energy, and commodities that started in 2010 is accelerating. At the worst, all global trade, which has helped and driven all growth (including the US) in the last 20 years will slow dramatically or stop all together. Iraq is now back in Iran’s influence, Russia and China are in direct currency trading and strengthening every day. GG has heard some commentators say that Russia doesn’t have the money, technology, or labor to expand its commodity reserves. But China does. In fact, China is doing that very thing already in Africa. India may be on the fence, but they know their geographical location and they have billions to feed. They have to be on the fence.

To sum up: too much is global debt will slow trade and change currency power. The unanswered question is: will political conflicts accelerate us all toward that decline.

 

February 1, 2014

New International Currency

Jesse had an update on the new international currency discussion. Click here. A new currency will happen and the pressure is building quick. But what it will look like and how will it change global capital/debt markets?

Groovygirl¬†is off the opinion, like Jesse,¬†that a new international currency will emerge,¬†and national currencies will stay the “same”. But gg¬†is also of the opinion that¬†this new system will not last very long because it will keep as much power/influence¬†with the US. And that strain between the US and emerging markets and outlying markets¬†will continue. This will be a short-term solution (2, 5, 10 years?). Groovygirl¬†is also of the opinion that this new currency will not last, because it will not address¬†the true problem: collapsing global debt.

January 11, 2014

Latest Blog Post from Martin Armstrong dated January 9, 2014

Click here for Martin Armstrong’s latest blog post entitled What Are We Waiting For in the Markets?¬†dated January 9, 2014.

January 6, 2014

Two interviews

Greg Hunter over at usawatchdog.com has two good interviews. Each are about 30 minutes.

One with Gerald Celente. Click here.

One with John Williams. Click here.

They each update their thoughts on 2014 trends and predictions.

groovygirl¬†follows John Williams at shadowstats.com. remember that John’s definition of hyperinflationary¬†depression is an economic downturn that is triggered¬†by a deflation in debt (debt unavailable and/or too expensive)¬†and an inflation in expenses (especially living expenses and commodity-related needs). There can be inflation in assets, but assets that are dependent on new debt creation¬†(such as housing) will be under pressure long-term.

In gg’s opinion, we have been in this situation since 2006-2007, but creative accounting and money printing has masked the truth. At some point, we will have another round.¬†Investors will either not believe the numbers and sell in a panic, we will have a trigger in the shadow banking system that spreads to other markets which occurred in 2008-2010 and investors have to sell assets to cover other debt obligations.

We still have a global economic balance sheet problem. Money printing and creative accounting solved the cash flow problem, but only temporarily.

January 3, 2014

2014 Trends from Charles Hugh Smith

Filed under: The Banking Crisis, The Dollar Crisis, The Financial Crisis, Unemployment, US Government Debt — totallygroovygirlfriday @ 2:34 am

Click here for an article about trends for 2014 from Charles Hugh Smith. He also looks back on his 2013 trend predictions. He has a window of 2012-2015 for these general trends, but very similar to Martin’s timeline¬†through 2015. gg looks to Martin for dates/turning points.

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