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Archives for May 2010

Monday May 31, 2010 - Today is Memorial Day and a bank holiday in the USA

  • Israeli commandos storm Turkish Aid flotilla.  History teached us that each economic depression is followed by a War. This time won't be different. Free Gaza plans to sent two more ships to Gaza over the next days.

  • Fitch downgrades Spain to AA+. No doubt other countries will follow...remember Bonds and Treasury certificates are the biggest actual Bubble.

  • Eventually the Euro will have to disappear. If Greece would return back to the Drachma today, it would simply vaporize (its debt would rise from 120% of 140% of GDP overnight...unless of course "they" would be intelligent enough to issue a Drachma backed by Gold. Hence the ONLY SOLUTION (short term - but politicians never care about the long term) is to HYPER INFLATE.....up to the point where the MARKET FORCES take over and these can be blamed for the misery created by the Politicians. We have a paradigm shift and there is NO WAY BACK! 

Saturday May 29, 2010

 

Friday May 28, 2010 - Monday is Memorial day (Bank holiday in the US)- The Gold pool is 'trying' to take precautions today as European Bankers are driving home for the weekend. So obvious it's like a comic movie. How stupid can one be to even hope he can bring down the price of Gold as people stand in a line to buy all they can!? The Herd is extremely stupid but once 'THE LINE' has been crossed it becomes extremely difficult, if possible to stop the stampede.

 

Bankers have over the past years with the help of the legislator expanded their action field profoundly. Financial advisors need a special 'bankers license'. Independent financial advisors have because of this been exterminated. Additionally they have - together with the politicians - absolute power over the Media. Academics are paid and controlled by the Authorities. Keynes was appointed by the British Queen (he was a government employee). and many modern economists have close ties with the political world. Some exceptions make the rule. One is Ludwig von Mises and his economic school. He understood perfectly the game which is being played by the Authorities and the Banks but has for obvious reasons never received the status Keynes and Friedman have. My personal problem was that Keynes and his incorrect theory was teached as '"The economic theory" when I was at University. I am probably one of the few who realized we were incorrectly taught the Earth was flat. Investors must for therefore realize they can because of these obvious reasons NOT expect correct Investment advice from their Banker.... Because of this situation the Bankers had their hands free in operating under a system of Fractional Reserve Banking and Fiat Paper Money. It also allowed them to create the uncontrolled and unregulated Derivatives (Credit Default Swaps, Structured products, TAK32, CDO subprimes etc...) which now hang as a Damocles sword over the financial world: regulating them would break the back of the Camel. Leaving them alive means a destruction of the financial world as we know it today.
 

Propaganda and Ignorance of many Politicians and Bank employees made it possible to grow this Modern Mississippi scheme (John Law) and Assignats Ponzi scheme. The end result of this will be no different than what happened in Argentina only years ago, in Zimbabwe , during the Weimar revolution and in France before the French revolution (80% of the people's wealth was transferred to the Government. Mind boggling is that today so many people refuse to believe and to see this is actually happening right under their eyes.
 

Note: the French revolution also was the end of Absolute Monarchy. French society underwent an epic transformation as feudal, aristocratic, and religious privileges evaporated under a sustained assault from liberal political groups and the masses on the streets. Old ideas about hierarchy and tradition succumbed to new Enlightenment principles of citizenship and inalienable rights. As many observe today there is more than the financial world at stake and similar revolutions are brewing.

Thursday May 27, 2010

 

Gold and Silver Juniors should be acquired only after your position of physical Gold/Silver is complete and you have invested in the larger Gold/Silver co's. They come instead of Turbo's, Warrants, Options and the whole bunch of uncontrolled and unregulated crap manufactured and sold by the Banksters. Following chart is a Junior which shows a gap on the candle chart. Most of the time gaps are closed (if not always).

European Real Estate Prices are crashing when expressed in Real Money or Gold. Following chart shows the price of British Real Estate prices expressed in Gold. Very different from the fake price of Real Estate expressed in Fiat Money. One of the few places on Earth where New decent Real Estate can be bought at bargain prices is the USA.

  • The Dow closed below 10,000 but this doesn't really affect us. Expressed in Real Money or Gold the picture is even worse and the Dow closes below 830.click here for the charts of the major stock indexes in Gold. We did advise you of a fresh breakdown not so long ago and we think you won't even dream of buying a common stock after consulting these!

  • California Democrats plan Billions in new taxes. Is this the end of the free and capitalistic spirit of America? Will the US really so stupid that it will adopt policies which did not to work in China and the USSR?

  • Bank of England MUST raise rates this year, OECD warns. Bond holders beware for the coming Tsunami. There is only loss and misery to be expected over the coming months. [remember the UK is the canary in the mine shaft for the rest of the World] don't forget the only guarantee Government Bonds give, is the word of a bankrupt society.

  • Watch out for the Euro/Dollar if it breaks down or up out of this short term trading zone...So far it is holding pretty well and the consolidation is a positive factor because it confirms the Mother of all Necklines. Also one must not forget that the cheap Dollar is an God-given-opportunity for the Chinese to diversify out of the Dollar and the Euro is still oversold...more

  • And the charts of $-Gold don't need any subtitles. Except maybe for those which are still in denial...more

  • The European narcissist political idiots are like cornered rats. Even Berlusconi says $ 30 billion budget cuts are needed to save the Euro. Assuming the Euro doesn't survive and the FPIIGS go back to the Peseta, Lira, Drachma, French franc...those currencies would dissolve instantly. Having said this, the Greeks are queuing to buy Gold coins...surprised? If you are just try to imagine what it will be once the Italians, Spanish, Belgians, French and Americans also start to queue...

  • The problems in the USA are not going away and getting worse...it is only a matter of time before the spotlight is directed towards the Dollar. Today the American debt broke the 10,000 billion ceiling [click on the debt clock]. There are not a lot of places to hide. Gold is one! Don't wait until you have to queue like the Greek

Wednesday May 26, 2010 - Today is more than ever the time to stick to our investment table.

  • We have a financial storm and markets are rocking the boat. But important is to stick to our investment table and not to let you get emotionally involved. Markets can be down by 10% to 20% but this is better than loosing it ALL and/or to be invested incorrectly. Invest according to the priorities and stick to these!

  • Those amongst you who want to initiate their Gold position or buy more must watch the stop Buy limit of $-Gold in the subscriber section! Be alert and aware correlations can stop AT ANY time....like now Gold AND the Euro could go up together versus the DOLLAR. The only way is to look at the correlation between any investment vehicle and GOLD. Gold is the absolute Barbaric money!

  • Gold in British Pound has landed in the top zone of its trend channel...but what if it breaks out?

  • Gold expressed in South African rand tries to tell us something about Gold expressed in other fiat currencies and the long term chart of the Rand is also indicative for the near trend of this commodity currency.

  • Gold and Silver mines are also a way to buy Gold to be mined and the performance of these have over the past months and weeks been rather poor. For this reason they still and can be bought NOW. See the subscriber's section.

  • Gold and Silver Juniors were/are an absolute buy-opportunity. Those who have some can use the actual price level to add to their positions. Who doesn't have any MUST use this opportunity to add some to their portfolio. These are absolute BUYS!!!...see our Junior section. Remember they are SAFER than derivatives (ETFs)

  • World Stock markets are just doing what we expected. Last week our Subscribers were advised we did not like what our charts showed.

  • The Euro is not out of the woods yet and we did not expect this paper money would come down so fast and so much. (Nobody is perfect). But for those who have aligned their savings as set out in our Investment plan, the weak Euro has been offset by stronger €-Gold. This is how it works. Having said this, the day of the Dollar will also come and will also be visible when expressed in real Money or Barbaric Gold. Also check the charts in the Dollar section.

  • There is only one way to cut down expenditures and this is by slimming down Government. After Greece, Denmark, Britain, Italy,...all of Europe is cutting down on spending. These politicians are IDIOTS. They are ensuring the recession will become a depression.

  • Four Spanish banks make initial merger pact in order to avoid bankruptcy.  Year ago we wrote Spanish banks were warned by the Spanish central bank their exposure to the Real Estate sector was way too high. Last week Zapatero lied that there were No Problems in Spain. Today the chickens are coming home to roost...Caja de Ahorros de Mediterraneo (CAM), Cajastur, Caja de Extemadura and Caja Cantabria aim to create a joint banking group.

Tuesday May 25, 2010 - GOT GOLD??????? ....if you still think we're joking try to buy some Kruger Rands....the premium over the Gold price has gone up from 2%-3% to 6%

  • We have GLOBAL MARKETS and one false move in Europe or the USA can set off global chain reaction. Financial markets and banks are linked to each other through financial operations and Derivatives (CDS)...more Important is to understand there are QUADRILLION UNCONTROLLED and UNREGULATED DERIVATIVES and that this is a powerful weapon.

  • The Euro can again be attacked by these Derivatives and we have yet to see whether the Central Banks will be able to counter the attack. If this happens Euro-Gold holders will be affected in a lesser way. One way to take the pressure off the Euro could be to increase interest rates drastically...but this would be devastating for the European economy!!! The alternate is to PRINT MORE MONEY...

  • China is a High Order Capital Good country and will be affected by the depression in an exponential way. Such is extremely dangerous!...more

  • Speculators are buying Gold faster than the world's biggest producers can mine. Today's Gold pool is loosing its grip as the physical Gold market is clashing with the paper market and the former ALWAYS wins ..more

  • Congress is getting ready to quadruple a tax on oil used to help finance cleanups. "They" need money and any idea is welcome. [years ago the French made drivers pay for using the Highways/Autobahns. At that time "They" promised to stop the taxation as soon as the investment was paid for. Years later, the tax was extended indefinitely in order to help the Blind French people....It now is a steady source of income for the French Government. French toll roads are probably the most expensive in the world]...more

  • The Dow Jones slid 80 points in the final 15 minutes of trading. We think that expressed in Fiat Money (nominal Terms) the correction isn't over yet but we don't expect another Crash as markets are protected by the communicating financial vessels (the Zimbabwe effect). Expressed in Barbaric money or Gold we do have an ongoing CRASH!...more

  • NEVER FORGET that an [Hyper]inflation policy must come with a DEFLATION PROPAGANDA to be sustainable. Don't believe a word of what politicians and Financial talking heads are trying to sell regarding this matter!  Why would you anyhow as they don't even know the definitions of inflation and deflation...more  [why is it so hard to stop believing guys who are proven liars and have been mismanaging the economies for decennia?]

  • Make sure you watch our Stop Buy level for $-Gold as the Bull run is not over yet...more

  • Today there is trouble is Spain as we predicted last year and two years ago! Hopefully my friends in Spain which have been in denial and still are don't suffer too much. I was labeled as a pessimist and nothing would ever go wrong. The bravest were forecasting the revival of the Spanish Real Estate market.

Monday May 24, 2010 - "The younger generation will refuse to be a victim of the political mis-management of the past decennia. Some of them will, as long as circumstances allow, keep lying in their hammocks. Many will emigrate. Entrepreneurs will flee massively." K.Van Campenhout

  • $-Gold still in a bullish trend. Short term technical indicators are oversold and are reversing course. Medium and long term indicators are still bullish. Our objective is still within reach.

  • We're updating our American Real Estate section. Although we know the Real Estate crisis isn't over yet, we are convinced there are OPPORTUNITIES.  Where else in the world can you buy a NEW FULLY EQUIPPED HOME for €50,000 of $ 75,000 !?  Do Europeans have a mental problem as Americans had in 2006 as they have to pay at least €150,000 for a living space of not even 100 m² or sq. ft 1,000 ?

  • Last Friday it seeped through that One bank in Spain had to close down. Cajasur was taken over by the Central Spanish bank after a failed merger with Unicaja. Cajasur was controlled by the Catholic church in the city of Cordoba and lost € 596 million on € 426 million in revenue. Spanish Real Estate is without doubt a major culprit! European Banks surely knows how to hide its game....more

Saturday May 22, 2010 - Important is to read and go through ALL the charts in the Gold and Silver section. and to Understand what you're doing.

  • Gold and Silver mines are volatile but the trend is your friend. Our PF charts sent a clear message and this must - together with UNDERSTANDING [we started to advice to buy Gold and Silver shares in 2002...and all who followed our advice have booked significant profits!!] why you are investing in a certain way and fundamental analysis make you brave the volatility storms. [Increased volatility ALWAYS tries to tell something to the investor!]...more

  • Important and relevant is the HUI (Gold bugs index) sequence which is published in the subscriber's section as it gives a feeling of what the markets are like today. Don't forget to also check the indicators...see the sequence

  • As we wrote this week, the Euro fell too much, too fast and too deep. The picture was frightening and critical but the Mother of All Necklines stopped the run. The dust is settling down and we will now analyze the situation and see whether or not we must alter our vision on the Dollar/Euro exchange rate. [this is only of secondary importance as we rate all fiat currencies against Gold]

  • $-Gold is still in quest for a bottom and the actual support level is doing a great job.

  • Yesterday was Friday and ...banks had to close down. A fait divers it has become. Aren't we all financial specialists and the Bankers the best advisors?...but serious consequences it has...and these are kept far out of reach of the Media and Talking Heads. Tout va tres bien Madame la Marquise...This song was played as the Titanic sank and the day before the USSR collapsed overnight in 1989.

  • Whatever is happening to the World Stock markets in the short run, remember what happened to Bonds and Equities in Zimbabwe...and stop reading the idiocies of the talking heads and many financial newspapers!

  • This is not the time to Raise Taxes! Fixing debt problems in Greece, the EU and the USA is a mission impossible unless taxes are cut and Government is sized down!...And the OPPOSITE is EXACTLY what the politicians [also in the USA] will do as the federal budget deficit and Treasury funding needs explode in the year-ahead, eventually domestic and foreign balking at buying U.S. Treasuries should become widespread, with Fed becoming the buyer of last resort, monetizing that federal debt. Coincident with that likely will be heavy dumping of the U.S. dollar and dollar-denominated paper assets. Whichever Fiat paper money you're holding, you will live and see that its final value will be ZERO!

Friday May 21, 2010 - A tale of Three Pigs [or why people invented tales in order to try to explain something to the Herd - click on the thumbnail] and BEARISH developments on the World Stock markets.

  • Day trading is extremely difficult is possible at all. The markets REALLY ARE manipulated. If you are going to learn one lesson from 2010 then let that be the lesson learned.

  • The Dow Jones has broken down a 1st support level. American and European stocks are in a slump but this doesn't really affect us as we have been negating the regular stock markets because they sit in a SOLID DOWN TREND when expressed in Barbaric money or Gold.

  • In "The Stock Market indexes section" our PF charts provide more indications as to the shape Stock markets are in. We absolutely don't like what the charts are showing...more

  • Gold momentarily broke an important short term support level but managed to reverse swiftly its course. The quest for a bottom is still on. Today's action proof we have a fairly strong support level.

  • We wrote over and over again Gold  and the Dollar could and would rise at the same time! As a matter of fact Gold always booked the best profits when it rose together with the Dollar. Remember when you were being repeatedly and relentlessly told that it was impossible for the U.S. Dollar and Gold to BOTH Rise together ? It was either Gold will Soar, and the Dollar will Crash, or that the Dollar would rise and Gold would Crash.

  • We've updated all charts of the Financials section and we don't like what we see.

  • The city is right to fear the "Coming Great Depression Mark II"...more

Thursday May 20, 2010 - check today's important updates for the Euro and Gold!

  • Gold is searching for a bottom and the Euro veers up after the German Authorities have banned naked shorts.  Derivatives and CDS's (credit default swaps) are the REAL DANGER looming inside the Financial Markets as they are unregulated, uncontrolled and have Quadrillions at their disposition which can be used to manipulate the markets. I expect that the financial markets to remain extremely volatile in the near future. Have the Germans localized the Achilles heel of the Hedge and other special traders? Will the ban on naked shorts stop these overruns?

  • Short and Medium term objectives for the Euro are posted in the subscribers' section...more

  • Gold has expressed in Euro reached our short term Objective. Having said this, as long as our key support level hasn't been broken (and it has not yet), the BULL RUN is alive and our Dollar-Gold-Objective can be reached...for more check out the charts inside the subscriber's section. This is important as the picture looks different in each fiat currency.

  • Gold expressed in Japanese Yen and Swiss franc is also at a all time high.

  • The Bank Index is off its short term top. A key reversal on the candle chart gave a correct Sell signal and today it is obvious one must stay out of this sector.

  • Most of the time, once the wave comes in it is too late to act. Because of the high volatility of the markets it is, for the average investor, of the utmost importance to position your savings properly BEFORE actual something happens.

  • The Uptrend channel for Crude Oil is still intact!...Use price level to initiate or add Oil shares to your protective portfolio. NOW is the time to acquire these and NOT when the news that Oil trades at $ 100 hits the Media.

Wednesday May 19, 2010 - this is a paradigm shift: what protected and worked yesterday will NOT work and protect you tomorrow!

  • Gold is the ONLY money one can invest safely in. If you don't believe it is scarce, just try to buy some Kruger Rands! [click on thumbnail] This doesn't mean one has to chase the price. See our charts for the status of the technical indicators for $-Gold. Important is ONLY to use the actual run to initiate a gold position if you have NONE.

  • In 1910 an amount of $ 1,000 bought 40 ounces of Gold. 1971 this amount bought 28 ounces. In 2002 the same amount only bought 3 ounces and today $ 1,000 dollars only buys 0,88 ounces. Explained in a way it must be explained, the value of Fiat Paper Assignats we use has - since 1971 - fallen by 97%.

  • During the 1st faze of the Hyperinflationary depression those who loose least will win most in the end. This because this kind of depression takes everybody by surprise.

  • Focusing on YIELD could become deadly for your savings. Patience is a virtue that pays true dividends instead of paper dividends. The Government is now your Banker. For this reason you cannot trust either of them.

  • Expect Gold only to be momentarily weaker once the Dollar weakens and the Euro strengthens...And yes, €-Gold broke the €-1.000 level and has so reached our bullish objective...denial will take you nowhere!!! Today is the time to listen to financial analysts which have experience and KNOW and UNDERSTAND what is happening instead of following Banksters who do not know what is happening in the first place. Unless of course you don not bother to loose your savings.

  • For Silver we have the same remarks as for Gold. Technical indicators are important at a time when the talking heads are selling more nonsense than average. Our charts tell it all...more

  • The Euro/Dollar trend could be in the process of changing. Instead of a weakening Dollar, we could see a stronger Dollar versus the Euro. Extreme caution is required as long as technically we need a confirmation, the Dollar is overbought and the Euro oversold...more on the Euro...more on the Dollar... [ note that we advised to old other investment instrument instead of the Euro and the Dollar over the past months - see our Investment table] Having said this, we could have a deleveraging process going on behind the screens.

  • Is Gold going up too fast and too much? All time high of Gold in British Pound,

  • The South African rand is a commodity currency. and it continues to strengthen against the Euro.

  • Germany halts naked shorting as of today at midnight. This applies mainly to Government Bonds and CDS's on Government Bonds and shares of large financial institutions. A healthy and wise decision! Naked shorting is sick and immoral and does not serve the economy. The impact of this decision on the financial markets can be visible as of tomorrow...more

  • Violence flares in Thailand. Bangkok and Official Government buildings, the Stock Market and Shopping Malls are on fire in the Northern and North East Provinces.

Tuesday May 18, 2010 - The financial Nuke bomb isn't Greece, the EU or the USA but the Credit default derivatives (swaps)

  • A lower price of Crude Oil certainly fits the scenario of an temporary expensive Dollar.  I can't believe it that even this small correction is used by 'IDIOTS' (one hardly can find another name for these guys) to advocate that Deflation is back...as usual our charts give a clear image of the reality!...more

  • BP is suffering but the Green talking heads are again blowing up this sad accident beyond proportions. Scientifics know that each year a lot more crude oil seeps into the Seas because of NATURAL HAPPENINGS. The Oil sector remains on the list of our Hyperinflationary investment instruments...check out today's buy opportunities of the subscriber's section. Now is the time to buy and not when the Media have their month full of it...more

  • The Euro came down too fast, too much and too deep. American Investors should grab this opportunity to diversify out of the Dollar now. The day comes the pendulum will swing in the other direction and the huger financial problems of the USA will be spotlighted. It is clear to us that Trichet, Merkel and other European politicians are using the very last arrows (their tongues) they have in an effort to make the Euro cheaper...but how long will the Americans let this happen?

  • Coal, Gas and Commodities are telling us the correction on the Forex markets has probably come to an end.  Commodities are subject to an international price and will correct expressed in any Fiat Paper currency as soon as the value of a particular currency is going up or going down. Today the US dollar is no longer the major currency these are expressed in.

  • Gold is having a healthy intermezzo and instead of selling (in the conviction that you cash in profits) one must use ANY CORRECTION to increase one's position. We have a paradigm shift: Gold will continue to go up and will stay up! Do not exchange your Real Money for worthless paper money for there is not enough Gold to satisfy the demand. If you don't believe me, just try to buy some Kruger Rands and see how hard it is to get these delivered.

  • ECB buys € 16,5 bn Bonds. Deflation? not a chance! Propaganda it is. Quantitative Easing and monetization of debt we have. Don't believe the fairy tale that tomorrow a similar amount of money will be taken out of the financial system to neutralize this action. Such simply is IMPOSSIBLE! Pigs have no wings and they cannot fly. Most politicians are entirely ignorant of basic economics but take upon themselves the elevated status of god-kings

Monday May 17, 2010 - The crowd's worse case scenarios, dramatized by the media, seldom come to pass.

  • The Authorities are a cornered rat. There is no room to push up interest rates like there was in the 1980's (Volker). By doing so they would simply slaughter what is left of the economy and banking/monetary system. The Authorities are checkmate: whatever they do will create either Hyperinflation or Deflation and make Gold go up. About 70% of money managers still own no gold. In other words, over the last couple of weeks Gold has been going up because a small part of investors were buying. Imagine what it will be when the Herd moves in!

  • A Hung parliament is a parliament where no one scored an overall majority. Such is the result of the last elections in Britain and clearly proofs the Britons don't understand what's about to happen to them. This kind of parliament has been fashion in Belgium for years now. Belgians still don't seem to understand the devastation it has been and it is doing to their country.

  • $-Gold has gone up by 300% in 8 years but the HUI index (Gold and Silver shares) has gone up by 1000 % over the same period of time. Don't forger to grab some of our Juniors...better and safer than ETF's and derivatives. [we started to advice Gold in 2001! - see the archives]

  • If you REALLY want to go nuts and loose money, tune to CNBC.COM and listen to what these Talking Heads try to sell you 24 hours a day. Emotion is your # 1 Enemy when your invest and this is exactly what these people are feeding.

Saturday May 15, 2010 - Wall Street and Banksters take no prisoners !

  • The Euro came down too fast, too much and too deep and it is FrontPage news all over the Media. My experience is that once this happens, the move has in most cases ended. Either we will see a correction either the Euro will fall apart. However we think that it is too early for this as politicians will do all within their power to keep their jobs. President Sarkozy threatening to pull France out of the Euro is a pure political move. France would become a direct victim of such a move as "the extremely poor shape it is in" is the best kept secret in the EU...more

  • The world has no money, and the emperor has no clothes. Extremely difficult to forecast which of the Fiat paper currencies will reach its REAL VALUE or ZERO first. Will it be the British Pound, the USDollar, the Euro, the Japanese Yen,...? We know (so does the Bank of England) the USA faces the same problem as Greece...more Today everybody is focusing on the Euro and Trichet - who initiated the down leg of the Euro in the first place. He could well have done so because his mouth was one of the only weapons left who could bring the Euro down. [interest rates being zero on both side of the Atlantic this instrument cannot be used any more]

  • The IMF doesn't know what it is talking about by urging rich countries to rise VAT and excise duties. Such will only make the depression worse!!! Only LESS TAXATION and LESS GOVERNMENT can take the Western World out of the depression...more  [who is running the IMF? Lawyers?  politicians?]

  • Today it's apparent the 1000 point crash of the Dow Jones was a setup. Wall Street has become the Devil in person. Last week we already wrote that the financial markets are supposed to serve the economy and society and not the other way around. "The market action last week was flagrant manipulation - whether national or international. The 10-minute crash and rebound harmed the public and rewarded the Wall Street crooks with enormous profits. Public stop orders were all taken out at discounted prices. And anyone actually trying to buy into the 1000-point decline in the Dow was turned away by the wide bid/ask spreads..."

  • You must take physical delivery of your Gold and Silver. Don't trust ETF's. This ain't a GAME. There is a growing consensus in favor of what GATA has been urging to do: to take physical possession of your Gold and Silver since the custodians of the largest gold and Silver ETF's are also the biggest gold and silver shorts, a grotesque conflict of interest.

  • Tout va tres bien Madame la Marquise and only 4 banks had to be closed yesterday.   Midwest Bank & Trust Company, Elmwood Park, IL  Southwest Community Bank, Springfield, MO  New Liberty Bank, Plymouth, MI Satilla Community Bank, St. Marys, GA ...This is the chart of the Cumulative Bank Failures.

  • In Europe Bank problems  are sold in a completely different way far away from the Media. But important is to know that the exposure of European Banks to Greece, Italy, Spain, etc...is a lot higher than the global bank assets and that if the PIIGS would not be bailed out, the EU would stop existing. Because of this the odds are that if some major problem occurs in Europe, the EU and these Banks will go bankrupt overnight like it happened in the USSR in 1989.

Friday May 14, 2010 - Today and yesterday are bank holidays in most of Europe !  Financial markets for this reason are usually slightly off reality. 

 

Gold for dummies: it is not the price of Gold which is going up but the value of worthless fiat money which is crashing! Yes, what most people are holding (bank notes, bank deposits, bonds) for money is actually worthless...and the attacks of the Gold cartel (central banks who want you to believe the crap they issue has any value) are clearly failing....

  • €-Gold broke the €-1,000 level before correcting to € 985. The line in the sand has been drawn.

  • $-Gold is off its high but stays above the $ 1,118 (support level). Today is Friday and many traders square their positions....

  • £-Gold indicates it did not like the result of the elections and Britain and the Pound are not out of the woods yet.

  • Politicians must be illiterates:  Portugal makes the same mistake as Greece by introducing 'Crisis Tax' to speed up Fiscal Consolidation. The VAT is increased from 20% to 21% . Income tax is increased by 1,5% and Corporate tax by 2,5%. On the expenditure side, transfers are decreased by € 100 million. [ increasing taxation is just the opposite of what must be done and government income will continue to crash as the depression unfolds. Hence there can be no equilibrium]

  • Britain and UK coalition holds its 1st Cabinet meeting: similar spending cuts and tax increases high on the Agenda. Spending cuts are good only if they come together with TAX CUTS.

  • We doubt the correctness of the Spanish inflation figures and the news that there now is Deflation in Spain. Remember they do cook the figures and the indexes and that one CANNOT measure Inflation and Deflation by measuring the price levels. Having said this, Spain has since its currency became the Euro lost its corrective mechanism (The Peseta) whereby it was in the past able to adjust its economy.

  • The Euro will NOT survive today's expensive Energy. Complex societies never did and never will. The Euro is nothing more but the crystallization of the stupid narcissist European politicians...more

Thursday May 13, 2010 - "Gold is the only money that's safe from the world' clueless governments, and their stupid obsession to escape a recession or depression."

  • "GOLD Rolls On To Another All-Time High." Silver continues its bull run and all time highs also come rolling is. Gold has broken into record high ground, above $ 2,218 on a close, it could jump up to $ 1,300 (technical objective of reversed Head and Shoulders pattern) and the top of the trend channel.

  • Not too late to buy Gold and Silver mines...but don't delay your purchases. As we're extremely busy these days, we still haven't been able to update the Gold and Silver Juniors which will be better than many Gold options and Warrants... We once more advice NOT to TRADE your Gold or Gold shares. This Gold trend is extremely powerful and Gold and Silver share are breaking out of a 29 year long consolidation/accumulation zone.

  • US deficit 4 times higher in year. The USA must tackle its deficits quickly to avoid the kind of debt crisis that hit Greece...more

  • The sale of Seeds has already DOUBLED this year! People start to grow their own food....Such doesn't happen because we're coming out of a recession as Politicians like to pretend!

  • The Euro zone's problem in graphs:

Wednesday May 12, 2010

  • The German Herd finally realized it: "It was horrible. Horrible! Like lightning it struck. No one was prepared. You cannot imagine the rapidity with which the whole thing happened. The shelves in the grocery stores were empty. You could buy nothing with your paper money." [click on the thumbnail for the clip] The end is near. Government interventions and bailouts need to be larger and larger and their impact is smaller and smaller. This is a clear sign the Hyperinflationary depression can start any day now (Ludwig von Mises). The day it starts, it will be too late to buy Gold and Silver and take physical delivery. The day comes the physical and the paper market for Gold and Silver will clash and there is no doubt the physical market will triumph over the paper market. All paper Gold and Silver holders (ETF's etc...) will find out that their is not enough Gold and Silver to deliver and will be left empty handed.

  • New all time high for €-Gold, $-Gold , CHF-Gold and £-Gold. Why exchange good money (Gold and Silver) for worthless paper money? It surely is possible to see Gold correct before it hits $ 1450, $ 2,000, $ 5,000 and higher. But do you really think you are prepared to take the chance? What 'if' Gold and Silver become exponential and you get stuck with paper money? Also. are you prepared to go through the exercise of PHYSICAL delivery of your Gold? [if you have paper Gold, you have NO Gold]. We do have a paradigm shift and it is my understanding MOST investors still haven't UNDERSTOOD this isn't a game of making money but rather one of preserving one's savings. A huge mistake!  Use corrections to INCREASE your exposure to real money (Gold, silver, gold and silver equities)

  • The HUI index was up 6% as Gold and Silver mines rise (as expected) and finally follow Gold and Silver prices. We told our subscribers that today's Math's would be tomorrow's Magic. See our selection of Gold and Silver mines inside the subscriber's section...more

  • Our investment table clearly indicates how you can and how you will not do to preserve your savings. We don't email BUY and SELL tips of the week for this simply ain't part of today's exercise. We cannot emphasize enough that today it is more than ever IMPORTANT to organize your assets in such a way the coming crisis will affect you as little as possible. This together with UNDERSTANDING and PATIENCE is all what our investment table is about.

  • No inflation? Think again and check the retail prices and you will UNDERSTAND the Authorities are window dressing the reality...more

  • British to bring down the deficit? Such is only possible by reducing Government (less politicians, less direct and indirect government employees) and increasing direct and indirect taxation: VAT, traffic and other fines, green fines,....the chickens are coming hone to roost. Such becomes almost impossible during an depression...check Jim's formula.

  • Economic bubbles are not recognized by those inside of them (wrong signals sent to entrepreneurs), and the entire Western World has become quietly trapped inside the largest economic bubble in history.

  • When traveling between Europe and the USA it becomes rapidly evident the EU and the USA are completely different economies and societies. No doubt that Western Europe can and probably will collapse overnight like the USSR did in 1989. Many Europeans still think Karl Marx does work. Even worse is that the social mattress gives them a false sense of security: at a time where the social provisions run on credit and printed money most Europeans think it is still available when it is not. What a huge mistake! Remember what we described as the Turkey effect: 1000 days care and the 1001st day it is slaughtered.

  • The Standard and Poor's 500 index priced in Gold lost 87,26% since 2000. Why still bother and spent time and money to find out whether the Stocks markets will go up or down!? Our charts of the market indexes expressed in Real Money or Gold are CLEAR. A secular DOWNTREND it is..more

Tuesday May 11, 2010

  • € 1,500 bn Quantitative Easing! (we could be off by a couple of billions...but it doesn't really matter, does it? Europe is on the brink of bankruptcy and yes they find/print € 1,500 bn out of thin air  to bail out the system!? The new EU stabilization funds means that the global money supply has been increased by € 500 billion.  Add another € 1 trillion which the EU agreed to lend to the indebted countries to make up for the balance. All is well Madame la Marquise...A solid net under the price of Equities and a booster for the price of Barbaric money or Gold and Silver. [Remember we are still bearish on all world stock markets expressed in Real Money or Gold] Europe could well be playing its last card to save the monetary union...more

  • Markets surge as a result of the huge money creation out of thin air. Individual shares advance by 10%, 20% and even 30%. Unseen - except of course in Zimbabwe. Important is to UNDERSTAND there is nothing to celebrate as markets went up for the wrong reasons and though Equities will be safer than Bonds and Cash, they won't be able to keep your savings alive during the coming hyperinflationary depression!

  • ECB buys eurozone government Bonds. This is monetization of debt and a clear step towards a hyperinflationary depression...more Technically I have the impression some invisible hand came into the markets and ensured the Bond markets did not break down their neckline. Such action would have been extremely bearish for Bonds, have unnerved the world financial markets and could potentially initiate the Hyperinflation.

  • Financials also bounced up but we are maintaining our SELL advice (even though the technical positive picture). Banks have in fact become nothing else but another head of the Government dragon...more In other words, it basically is as dangerous to hold Bonds issued by Banks, Bank shares or Government Bonds.

  • There is less and less Gold that can be mined. Supply is falling and demand rising...Two of South African gold industry's flag bearers, AngloGold Ashanti and Gold Fields, are each trying to eek out the best of what's left of thinning economic reserves. Therefore major Goldmines will - in order to survive - have to take over more and more Gold Juniors.

  • We have a large key reversal on the candle chart of Crude Oil. We doubt however its value as key reversals have in the past months and weeks proved to be rather unreliable.

  • Which currency will fall into a Hyperinflation first: the Euro of the Dollar? We also have a dramatic reversal on the Dollar/Euro chart. Exactly what had to be expected after the parabolic sell off we had last week. If however the Dollar/Euro breaks through the maximum activity line, we will alter our advise and the Dollar will become a BUY and the Euro a SELL.

  • Financial markets exist because they serve the economy. The loose their very reason of being if their are nothing more than a selfish generating computerized Goldman Sachs money machine. What sense does it make to see equities move up and down like a yoyo by 20% and more in only 24 hours time ?

  • Arnold Schwarzenegger has California's economy terminated. The state's deficit already makes up $ 15 bn and will soon reach $ 21,3 bn. It needs a lot more than a Movie star, a tennis player or a Talking Television head to run a society and economy properly...more

  • The way World Stock markets resisted to last Thursday Holdup is an indication the Uptrend is still alive and well...more [DO NOT to listen to the songs of the Political Mermaids and Banksters: Stocks will do better than Government Bonds!]  Worst affected stock markets are off course Greece and Spain. [Spain has always been living a culture of millions of Pesetas and there was off course no change when the Euro was introduced. Hence, because of greed and stupidity this country has become uncompetitive]

  • Silver resumed its bull run...more

Monday May 10, 2010

  • Even Santa will never tell us whether the 1000 crack on the Dow Jones was a stupid error. Anybody with some brains in his scull knows the odds that such happens by accident are extremely small, if possible at all. We know the Derivatives are a Nuke bomb and once it is unleashed, all is possible. Better be warned and early than late and sorrow. We also know markets are rigged with computers using high-frequency trading programs, which now compose 70% of market trading. Goldman Sachs could therefore be in a position to crash the markets if they don't get their way.

  • Unlike in Europe in the USA crooks still go to jail. JPMorgan Chase & Co. are under investigation in regard to trading in precious metals.

  • Only the charts of the World indexes expressed in Barbaric Gold/Real Money are telling the truth!

  • How to act once Gold has reached the top of the trend channel? This is today's multi-million Euro question. €Gold can either continue its bull run and become exponential, either it can consolidate and ease back to the bottom of its uptrend channel. The same question was asked by the Canadians months ago. Any answer to such a question needs some reflection. We shall post the answer to this question in the subscribers' section. Having said this, important is to UNDERSTAND the game is not about MAKING MONEY but rather one of preserving MONEY/BUYING power. I know many brains have a problem understanding this. The alternate you have is to exchange your REAL BARBARIC MONEY or GOLD for worthless Fiat Paper Money/Government bonds and risk to loose it all the day the carousel stops. Any candidates?

  • The Euro went down too much, too fast and too deep and what the EU brewed over the weekend will have a positive impact on the exchange rate.

  • Gold expressed in South African Rand broke out of the accumulation formation in a dramatic way. No doubt this action will result in a similar action on the South African Gold mine equities.

  • Even JPMorgan and Goldman won't be able to stop this run: checking the charts of Gold in Yen, Swiss Franc, Canadian Dollar, Aussie and Rupee gives a clear idea of what is to come. This also confirms our advises regarding the currencies: any buy stays a buy until we change our opinion and this will always show on our Investment table. This site is not a site for diagonal reading and one must make the effort and take the time to go through the 140 pages if one wants to understand where we are heading for!

  • The British elections were a lame duck as I forecasted and the Pound is not out of the woods yet. It proof how little understanding the Brits have of the misbehavior of their leaders during the past decennia. As this site is a Economic and Financial one we don't really want to get involved in politics but one must know that today Politics have more than ever a direct sickening impact on the economy. The system is rotten to the core and Democracy has been degraded to a fairy tale for the naives. The upcoming elections in Belgium will be nothing more and nothing less and the carousel will be kept alive...Belgians also fail to understand the paradigm shift!

Friday May 7, 2010 - Wake up, what we publish isn't a fairy tale and those in denial will pay the price!

  • There will always be a bail out in the EU. The PIIGS owe 700 billion to Germany and 900 billion to France. France and Germany are actually bailing out themselves. Quantitative Easing it is and a Hyperinflationary depression it will become. Those in denial and those not making their home work will loose their savings in a very short period of time. Europe will because of over-taxation and too much regulation have it extremely hard to crawl out of the Depression. European politicians have literally slaughtered their respective economies. Louis XVI and Marie-Antoinette landed on the Guillotine for this kind of misconduct.
    The US housing market to burn down in July?  We can’t foresee the impact this will have on the markets, or how the government will (over)react to a resumed slide – but we’re pretty sure it won’t be good. Having said this, it will probably be an excellent time to BUY AMERICAN REAL ESTATE at SUPER PRICES.

  • Gold is insurance against the worst case (and we are only days away from an all time high of Gold expressed in Dollar) and a hedge against the sovereign currency crisis we see as inevitable. The energy sector offers powerful, long-term upside thanks to a combination of the hard facts of Peak Oil, a new wave of political and legal constraints on further offshore oil drilling.

  • Gold and Silver equities are today's math's and tomorrow's magic...more [updated charts]

  • $-Gold = double top! We told you not to wait!  $-Gold is only so far away from an all time high and €-Gold is only so far away from € 1,000...and we haven't seen nothing yet! If you want to loose all your savings, keep trusting the Banksters and the Authorities.

  • Yield on Greek government bonds rises to 12%.

  • Yesterday the Dow Jones came down by 1,000 points in a couple of minutes time. It only took minutes to correct after some invisible hand pushed it up again.

  • World Stock markets are a SELL in MAY but we yet have to see if one has to stay away. Having said this, it doesn't really concern us as we advised other investments instruments and we clearly advised to stay away of Stock markets with negative trends when expressed in Barbaric Money or Gold. Whatever happens, the Authorities will step in (Quantitative Easing and Derivatives are a mighty weapon) and correct the situation. Remember to BUY LOW and SELL HIGH.

  • I did not expect a major landslide as far as the British elections are concerned and I don't expect one as far as the upcoming Belgian elections are concerned. It's too early and the Herd still doesn't UNDERSTAND.

Thursday May 6, 2010 - 2010 certainly will go down as a final chapter before all hell breaks loose around the world.

  • Social unrest in Greece!? Brace for more unrest in Europe, Britain and the USA. All politicians have been behaving like drunken sailors and the Chickens are coming home to roost. There is way too much Government than people can afford.The problems are universal and the EU will have to do all it can to stop the social unrest domino effect. Quantitative Easing helps in the short run...

  • The day is close the pendulum will swing to the other side. The U.S. economic and systemic crisis of the past of the past two years are just precursors to a "hyper-inflationary great depression." This prediction of ShadowStats is unique to the U.S. but other economies will also suffer severely.  Incorrect signals are still being sent to the entrepreneurs but we have a paradigm shift and not out of the woods yet.

  • Only those who kept their savings in barbaric money (Gold and Silver) will survive financially. Gold is the only asset which cannot be manufactured by the Authorities and a click on ENTER and it has been reliable for more than 2000 years. This time won't be different. Those thinking that by exchanging Euro's for Dollars will end up loosing as much as if they kept the Euro's. ALL FIAT MONEY CURRENCIES will end being worthless - ZERO! . Those who  trust government and Banks and hold or buy Bonds can loose their savings even faster. Because of the Turkey effect such can in fact happen tomorrow catching all those who are not prepared. Greece is an prime example. In just over a week's time, yields on Government bonds soared to over 10%.

  • Why is it that people have such a short memory and why are so many living in denial? An IMF study counts as many as 257 sovereign defaults between 1824 and 2004. Between 1981 and 1990 alone, there were 74 defaults . During the Great Depression most of Europeans moved their savings to America as one country after the other defaulted on its debt.

  • The Dollar/Euro is at a critical level but the secular downtrend of the Dollar has still not been violated...more

  • Gold and Silver are gearing up for higher.

  • The correction of the Oil shares must be used to start or to add to your exposure.

  • According to the charts of the Commodities the correction we have should almost be over.

Wednesday May 5, 2010

  • Manipulation, flight into safety, panic or hedge fund action? Government bonds on both sides of the Atlantic acted in a very volatile and sometimes strange/illogic way. But we all know markets often react in an emotional way...more . Greek, Portuguese, Italian and Spanish Government bonds continue to tumble [as we forecasted 2008-09] and won't probably be able to recover before long. Greece is an easy scapegoat for the talking heads and politicians who don't really understand the paradigm shift we are living NOW. Most Markets were overbought and due for a correction! Nothing goes up or comes down in a straight line.

  • All charts in the Dollar and Euro section have been updated. Technically (we may have a very bullish formation in the make!) the situation is critical and needs to be followed up closely until we have a clear indication of the future trends. We do not doubt that in the long run the Euro won't be able to survive but the same can be said about the Dollar who right now just gets a free ride because the Media focus on European problems instead on American ones!

  • The weak Euro doesn't affect our Subscribers as we advised to park their liquidities in Australian Dollar, Canadian Dollars, Swiss franc, South African Rand and Gold/Silver...more

  • A stronger Pound Sterling after the elections? The British Pound is consolidating and technically we could have an accumulation.

  • New highs for Gold in most currencies (except for $-Gold).

  • The Turkish Consumer Price Inflation rose to 10.2% y/y (0.6% m/m) in April 2010, up from 9.6% in March. This is a sharp increase from the end of 2009, when the CPI came in at 6.5% y/y.

  • Further interest rate hikes in Australia. The Reserve Bank of Australia (RBA) raised its overnight cash rate by 25 basis points to 4.5% in May 2010.

  • How stupid can one be to increase VAT from 20% to 25% during a depression? Both Greek politicians and the IMF haven't got a clue how to cope with a recession and depression. Unbelievable that 'THEY' still haven't learned their lesson and keep making the same mistakes....

Tuesday May 4, 2010 - We have a paradigm shift. This isn't just a dip. Don't expect the economy to prosper before the misallocated funds have been cleansed out of the system. This will take many years. Those who think they know better will loose all of their savings.

  • Chinese economy can and will probably crash between today and 24 months. China is an High Order Capital Goods economy and is for this reason more fragile to an economic depression than the Western World. As the West enters a depression the demand for Chinese goods falls and has a leveraged effect on the Chinese production. A similar effect was active between Britain and America during the Great Depression...more

  • If politicians don't change politics, people change politicians. Kings and Queens, Politicians and Parliamentary  are in power only because "The People" decide so. If those in power stop serving those who elected them, they will be be taken off the job. Often this doesn't happen in a peaceful way (because there are no proper leaders available and/or because those in power are not prepared to give up their privileged position). We then see a revolution, a coup or (civil) war. This action normally follows the Turkey pattern: all of a sudden for some secondary reason the people revolt and take the leaders to the guillotine or throw them out.

  • It's the Government the people elect which is the very reason for the economic recession/depression. THE #1 REASON WHY ECONOMIES COLLAPSE IS BECAUSE GOVERNMENTS AND THEIR SPENDING GREW OUT OF CONTROL. Keep up your individual efforts to accumulate physical gold and silver and get your “financial house in order”. Just because the government is pushing us toward bankruptcy and chaos, that doesn’t mean that we should do the same.

  • The correction on the World Stock Markets is probably behind us. Indexes and stocks fell back to their 50 or 200 day Moving averages before the Quantitative Easing (we have communicating financial vessels) ensured the markets resumed their Bull run.

Central banks are deploying their heavy artillery in the battle against a systemic collapse.  Their immediate objectives are to prevent the private sector bond market from closing its doors to new or refinancing borrowers and to forestall a technical break in the Dow Jones Industrials and other major world stock indexes. Keeping the bond markets open is absolutely vital at a time when corporate profitability is on the ropes. Keeping the equity index on an even keel is essential to protect the wealth of the household sector and to maintain the expectation of future gains. .

  • A tale of 7 banks and $ 7,3 billion loss. While the Talking Heads are focusing on the Greek problems, the FDIC closes down 7 banks which together make up the largest loss since IndyMac had to be closed down. The FDIC has a cumulative deficit of $36 billion.

  • Value of  British Pound expressed in real money (Gold) hits new low.  Expect the real value of the Euro and Swiss franc to follow today. Remember the real value of any Fiat currency and the options (Bonds) to buy these = ZERO!  Gold expressed in Euro almost hit € 900 !

  • Bad news for Gold and Silver mines tapping the Australian soil. Australia will impose a 40-per-cent tax on the profits of resource companies like BHP Billiton and the Rio Tinto Group to pay for infrastructure, retirement and company levy changes, as part of the broadest overhaul of its tax system since World War II. The King ran out of money and he will take it where ever he can!

  • Euro has gone down too fast and too much. Technically it is oversold but has at the same time arrived at a critical level. At this point it is still to early to call a trend reversal. Will keep you posted.

  • What we se now is a proof that the Dollar AND Gold - Silver can and do sometimes go up together.

  • A correlation sometimes for no apparent reason stops to exist and vice versa. Today almost ALL markets came down because ALL are overbought: Stock markets, Bond markets, Silver, Gold and Oil. Talking heads must -off course- find a reason for the action on today's markets.

Monday May 3, 2010 - Today is a Bank Holiday in Europe (this is visible on the Forex markets) !

  • Believe it or not but expressed in Barbaric Gold our model portfolio "lost" 3,44% since January 2010 ! Over the same period of time however and expressed in Fiat Dollars we made +1,27%. Expressed in Fiat Euro's +5,10%. [the valuation of the portfolio doesn't account for dividends, etc..]

  • Greek government must spent € 30 bn less. Government employees will from now on only be paid 12 months a year instead of 14 months!  Direct and indirect government employment ALWAYS put a damper on the economy because this kind of employment is contra-productive and takes away the productive jobs in the private sector. As long as big Government is cut down and taxation is not increased we may see some improvement.

  • Athens - May 1st. Not the IMF has failed.  It is the Greek who have failed to properly control the Parliament and allowed the Government to grow like a Cancer who are at fault!

  • Gold expressed in Aussie is about to break out of a reversal formation and CanDollar Gold just broke out.  Gold expressed in South African Rand is lagging...but is also about to break out. Once it does, it will boost the South African Gold and Silver Mines to higher levels.

  • World Stock market indexes has eased back to their 200 day Moving Averages. The coming days and weeks will tell us whether we will have a fresh down leg or the markets will resume their nominal climb. Whatever happens, we are sticking to our Barbaric Money charts!

  • Gold and Silver stocks gave a clear BUY SIGNAL last January. February 5 and April we confirmed these. You had to be blind not to see it! Gold and Silver juniors are still lagging somewhat.

  • Newmont reported a 105% increase in first-quarter net income and remains on track for ounces of gold production this year, CEO Richard O'Brien told analysts Tuesday the company is experiencing operating costs pressures "primarily driven by lower production volumes in Nevada, Peru and Ghana, and as a function of high cost underground production at Nevada and higher mill production at Yanacocha."

Saturday May 1st, 2010 - special day in Europe

  • This is what politicians think of the voters. [click on picture] Why is it so hard for the Herd to understand this? The more politics, the more taxes, the more regulation, the higher unemployment, the weaker the economy. Countries with the lowest tax levels have the best employment levels!

  • Gold has now broken above all of its resistance levels, with one exception. Its next and last hurdle to overcome is the November closing record high at $1,218. A clear close above this level would signal that  $1,300 will be an easy target. By doing this the main objective of the reversed HS formation will be reached. [see all our updated charts]

  • If the actual correction of the World Stock Markets becomes a 2nd down leg, it can become a trap. This also valid for the Financials/Banks.

 

Goldonomic, Florida, USA - +1 (772)-905-2491