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He’s been silenced for over 7 years in U.S prisons, on barely-legal contempt of court charges. Influential players with much to lose have bent rules and worked over-time to make the charges stick. There were long weeks in the hole (solitary) and a suspicious “mistake” when a killer placed in Armstrong’s cell beat the frail genius brutally and left him for dead, while guards were “busy”.  But now, perhaps due to an Amnesty-International style campaign, Martin Armstrong has been quietly freed.

Armstrong has a track record of accurate Market and Geo-political prediction second to none. So accurate, in fact, that the CIA reportedly made him an offer they thought he couldn’t refuse (They were wrong).  This is a man who gets calls at 3:00 AM in the morning, from heads of countries, central banks and global financial firms, begging for his analysis, insight and advice.

This is the man who believes we had better hold on tight for the wildest ride of our lives these next few years, socially, financially, and politically. Diabolical plots to consolidate control by pushing the economy over the edge would actually be a welcome discovery. Armstrong says the reality is much more worrisome: 

 When you get long panicked calls from the top people in the world, you come to the realization that we’re in a runaway train and NO ONE IS IN THE CONDUCTOR’S SEAT right now!


That’s what happened with Armstrong’s ANALYTICAL AND WORLD ECONOMIC CONFERENCE being held in Philadelphia this December 3rd and 4th.  It will not be advertised, anywhere.

Do yourself a favor and find out more about this remarkable man who’s much needed voice  -a voice that predicted and warned about all the nastiness of the last few years- can help us make intelligent decisions in the challenging years ahead, and if you found this article interesting and would like to be notified when a new article is posted to Surfing The New Normal blog,  please add your email in “subscribe” box at the upper right corner of this page. Thank you!

More on Armstrong:

resources: -overview, recent radio shows, articles, interviews!   (sign up for his free articles)

note: Armstrong’s elite clients normally paid tens of thousands annually for access. The two sites above represent two of the best free sources on his current thinking that you will find.

Martin Armstrong (born November 1, 1949 in New Jersey) is the son of a lawyer and Lt. Col under General Patton in World War II. His full biography is on line. In short, Martin was encouraged by his father to get involved in computers during the mid-1960s. He completed engineering both in hardware and software but he returned to the gold business that he had begun while in high school to earn money for a family trip to Europe in the summer of 1964. He continued to work on weekends through high school finding the real world exciting, for this was the beginning of the collapse of the gold standard. Silver was removed from U.S. coinage in 1965 and by 1968 gold began trading in bullion form in London. The gold standard collapsed entirely in the summer of 1971 when President Nixon closed the gold window. In 1975 it became legal in America, for the first time since 1933, to trade gold in bullion form. Armstrong began exploring financial panics after witnessing the Crash of 1966. He went on to develop timing models such as the “Economic Confidence Model” that have been the subject of many press articles Armstrong’s discovery of this cycle was called The Secret Cycle by the New Yorker Magazine.. This model had stunning accuracy: it pinpointed changes in the economy right to the day. In Time Magazine, Justin Fox wrote that Armstrong’s model “made several eerily on-the-mark calls using a formula based on the mathematical constant pi.” (Pg 30; Nov. 30, 2009).

Armstrong’s Princeton Economics International, Ltd. established offices in Paris, London, Tokyo, Hong Kong, and Sydney, Australia employing about 240 people around the world. In 1983, the Wall Street Journal cited Armstrong as it’s highest-paid advisor. He became one of the top currency analysts and his work was requested by the Presidential Task Force (Brady Commission) investigating the 1987 Crash. The firm rose to be perhaps the largest multinational corporate advisor in the world and by the 1997 Asian Currency Crisis Armstrong, invited by China, flew to Beijing to advise the Central Bank.   -from wikipedia entry

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TICK TOCK Derivatives: The $600 Trillion Time Bomb That’s (Still!) Set to Explode


Instead of attacking the problem, regulators have let it spiral out of control, and the result is a $600 trillion time bomb called the derivatives market says Keith Fitz-Gerald, Chief Investment Strategist of Money Morning

The world’s gross domestic product (GDP) is only about $65 trillion, or roughly 10.83% of the worldwide value of the global derivatives market, according to The Economist. So there is literally not enough money on the planet to backstop the banks trading these things if they run into trouble.

Think I’m exaggerating?

The notional value of the world’s derivatives actually is estimated at more than $600 trillion. Notional value, of course, is the total value of a leveraged position’s assets. This distinction is necessary because when you’re talking about leveraged assets like options and derivatives, a little bit of money can control a disproportionately large position that may be as much as 5, 10, 30, or, in extreme cases, 100 times greater than investments that could be funded only in cash instruments.

Imagine the fallout from a $600 trillion explosion if several banks went down at once. It would eclipse the collapse of Lehman Brothers in no uncertain terms.

A governmental default would panic already anxious investors, causing a run on several major European banks in an effort to recover their deposits. That would, in turn, cause several banks to literally run out of money and declare bankruptcy.

Short-term borrowing costs would skyrocket and liquidity would evaporate. That would cause a ricochet across the Atlantic as the institutions themselves then panic and try to recover their own capital by withdrawing liquidity by any means possible.

And that’s why banks are hoarding cash instead of lending it.

The major banks know there is no way they can collateralize the potential daisy chain failure that Greece represents. So they’re doing everything they can to stockpile cash and keep their trading under wraps and away from public scrutiny.

There are three main points to remember here:

1) There is not enough capital on hand to cover the possible losses associated with the default of a single counterparty  let alone multiple failures.

2) That means banks with large derivatives exposure have to risk even more money to generate the incremental returns needed to cover the bets they’ve already made.       

3) And the fact that Wall Street believes it has the risks under control practically guarantees that it doesn’t.

Many people have read about this problem, and have seen even higher numbers high as 1.4 QUADRILLION (1,400 Trillion), but believe all the risk is taken care of through offsetting actions, much as options and futures are a zero sum net game.

This may be true, although it’s hard to quantify because vast portions of the derivative market are not regulated, tracked or listed the way other financial data is so we simply don’t know, although big players can be assumed to be hedging this sort of risk.

THE REAL PROBLEM, according to experts, is the fact that while 

 the “net exposure” is manageable, what is NOT manageable is “counterparty risk,” as Lehman and AIG showed. What happens if another major player can’t meet obligations (certainly a high probability in this day and age)?  One counterparty default snowballs into systemic default.

Derivatives are not tangibles, but rather sales of future cash flow. Hence there are several counter-parties. Most notable and the real threat is the insurance bought to limit exposure risk. Lehman was in the insurance business of the mortgage CDO sector. When the shtf, Lehman lacked the cash and access to cash to cover the settlements for loss.

Herein is the problem. If the settlement for loss can’t be covered by the derivitive insurer, the losses go straight to the bank’s bottom line. Stock and bond-holders of the insurer are wiped out. Same for those with shares in the bank that is counting on the settlement.

Chain reaction. In and of itself, this is good. Higher risk means higher potential for profits and loss. The insurance on derivatives was meant to reduce risks and insure profits. Good luck with that.

The problem is the fear factor among the depositors. They will run on the bank and wipe out what little remains on deposit. The majority of money deposited is already loaned out. In a strangled economy, the potential for default on the loans is high. The deposits are insured by FDIC and the loan is insured by a counter-party already tapped out. FDIC will have to call on Treasury and Fed to roll the presses.

“Fact of life, you can only pile feces so high before it falls over. The real problem is each derivitive has too many counter-parties completely dependant upon each other to make good. Good luck with that.”

Jim Sinclair, the great gold and currency trader has remarked that all of this is “too stupid to be stupid”.  Concerned citizens who have pondered the complete failure of authorities to contain this ticking bomb could be excused for viewing all this as a well-planned chess game being played by global elite -perhaps a plan to take a giant leap forward by pushing the economy over the edge to advance widely shared goals of centralized world government and a global currency under complete central bank cartel control:

“I think we are all missing the point here. The big picture is to collapse the currencies, write off all debts and introduce a new form of universal monetary instrument. When there is blood in the streets and chaos reigns we will accept what is offered to us.

“All of this stuff has been prepared and rehearse of that you can be sure. Think B.I.S.  The persons running this show have been doing a sensational job in making it all come to pass. Why else would the financial institutions and governments participate in such wild and crazy borrowing and debt? Push it over a cliff and start fresh with complete control. I believe that Henry Kissinger is one of the principal architects of this long drawn out death (yes he is still operating in the shadows of the US government). As Henry once said (think 911 and war on terror):

‘Today Americans would be outraged if U.N. troops entered Los Angeles to restore order; tomorrow they will be grateful! This is especially true if they were told there was an outside threat from beyond whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will pledge with world leaders to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well being granted to them by their world government.’

A well planned chess board,  epic failure to govern, or a global game of musical chairs so profitable that neither government nor Wall St. mega-bank wants to end it?

Either way, in the words of Serge in one of my favorite films, Chocolat, “SOMSING MUST BE DONE”!

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Can’t add much to this one! 🙂

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The Underwear Bomber Attack Fundamentally Destroyed my Faith in U.S. Government & Media

“The Underwear Bomber attack has fundamentally changed my life” wrote Top Detroit Lawyer and Eyewitness to the Christmas Day “Underwear Bombing” of Flight 253 on his blog today as the suspected perpetrator’s trial begins. 

 “Not in the way most would think, but it has destroyed any faith I’ve had in the U.S. Government, the media and this country as a whole. To say that I believe the government is corrupt and the media is complicit doesn’t fully explain my beliefs.”

Detroit lawyer couple Kurt and Lori Haskell’s eye-witness revelations cannot be easily dismissed, and smears of “conspiracy theory” just won’t stick to these two successful professionals who are well known and respected in their Detroit area community. They happened to be sitting within a few rows of the underwear bomber when he lit his pants on fire ushering in a new era of airport “naked” scanners, TSA groping and crying children.

 “Not only have I come to those conclusions, but I’ve witnessed that an ordinary person who sees something important can be silenced despite his efforts to spread the truth. Such is the Underwear Bomber case.

” I can do nothing but laugh at the TSA’s new policy of “If you see something say something.” That is exactly what I did, and not only did the U.S. Government not want to hear what I had to say, but it actively lied about it, attempted to get me to change my story, and hid, by withholding (secret government) evidence or putting a protective order on the evidence and nearly everything that would support my eyewitness account”    -Detroit Lawyer and eyewitness Kurt Haskell on his blog which, if you still give a damn about HONESTY, ACCURACY,  AND TRUTH IN AMERICA , you will read and follow here:

Meanwhile, this guy and his buddies made lots of money off scanners that Americans would never have allowed if it wasn’t for the underwear bomber incident 
 UPDATE: OCTOBER 10th DETROIT LAWYER HASKELL WILL BE CALLED TO SERVE AS WITNESS FOR DEFENSE. “How ironic is it that I will have Umar’s life in my hands just as Umar had my life in his hands (or underwear) on Christmas Day 2009? I will be up to the task. I realize that some may not agree with me and may attempt to harm me. Nevertheless, I will speak the truth and not be intimidated. I will do this for the common good of all of the citizens of the United States. It is not often that I quote a passage from the bible, but I think it is appropriate here:

“And you will know the truth, and the truth will set you free.”

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“The pain was beyond the tolerance that I could accept,” he said. “I kind of hit a brick wall with everything.”

A couple of months ago Verone started weighing his options.

He considered turning to a homeless shelter and seeking medical help through charitable organizations.

Then he had another idea: commit a crime and get set up with a place to stay, food and doctors.

 The day Verone set out to commit his first felony, he mailed a letter to The Gazette.

He listed the return address as the Gaston County Jail.

“When you receive this a bank robbery will have been committed by me. This robbery is being committed by me for one dollar,” he wrote. “I am of sound mind but not so much sound body.”

Verone wanted to talk to a reporter to make sure people knew why he turned to crime. He figured he had nothing to lose.

“I knew that a felony would not hurt me. I cannot work anymore,” he said.

But Verone said he thinks he made the right choice for his situation.

“I picked jail.”

READ THE WHOLE THING HERE (Thanks to linkedin discussion group “American Preppers: Survivalism Lite for People with Jobs” for this story:



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A CURRENCY EVENT IS NOW UNAVOIDABLE: BE PREPARED for a reversal of the decision to curtail QE

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“Dear Extended Family, Today’s markets are exactly what you would expect as we enter illustration number three of the Skier. Economic statistics are taking a hard fall. Without QE who will buy US treasury issues? Without QE where is the … Continue reading

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