Tuesday November 30, 2010 - The
Euro is down too
much, too fast and too deep!
There are more problems in the western world than the Economy, the
Banksters and Finances. The Wikileaks
are just one blatant example.
Beware as the pendulum can swing in another direction any day.
Are
you prepared to bet that the Euro will disappear before the Dollar
will?
Do you realize that in the USA each week at least
3 banks are closed down, that the FDIC (bank guaranteeing institution)
is deeply in the red? That more than 100 banks have been closed in
2010?
Total US federal debt has doubled in the past seven
years, to almost $14 trillion. That's more than $100,000 for every
American household. This explosive growth in federal borrowing is
a result of not just the financial crisis but also government
unwillingness over many years to make the hard choices necessary to
rein in our long-term structural deficit.
Retiring baby boomers, who will live longer on average than any
previous generation, will have a major impact on government spending.
This year, the combined expenditures on Social Security, Medicare and
Medicaid are projected to account for 45 percent of primary federal
spending, up from 27 percent in 1975. The Congressional Budget Office
projects that annual entitlement spending could triple in real terms
by 2035, to $4.5 trillion in today's dollars. Defense spending is
similarly unsustainable, and our tax code is riddled with
special-interest provisions that have little to do with our broader
economic prosperity. Overly generous tax subsidies for housing and
health care have contributed to rising costs and misallocation of
resources.
Unless something is done, federal debt held by the public could
rise from a level equal to 62 percent of gross domestic product this
year to 185 percent in 2035 (where else have we seen this?)
Quantitative Easing in Europe.Last
week the ECB bought € 1,350
billion Bonds. There are NO
EXIT PLANS and the ECB and Central banks MUST continue to print more
and more money just in order to keep the Financial System and the ECB
alive....such ALWAYS results in a HYPERINFLATIONARY depression.
Worst case scenario for Dollar Gold is $ 1260.
But we really doubt Gold will correct during what is often the best
time of the year for the Gold and Silver sector. $ 1320 is the
stop loss level...
Monday November 29, 2010
The Dollar/Euro
are like devils dancing in holy water. Sometimes a
currency does go up for the wrong reasons.
The short term down trend of the Dollar index is still
intact. Over the last years the Dollar has been relatively strong during
the last weeks and sometimes the first weeks of the year. Seasonal
factors do play a role. Having said this, the Dollar/Euro exchange rate
has been extremely DIFFICULT to forecast!
“If the euro is abandoned, and we go back to the
peseta, lira, escudo, drachma etc., devaluations would follow
immediately,” said Arturo de Frias, head of bank research at Evolution
in a note to investors today, adding the industry is a “great buying
opportunity.” Devaluations mean write-offs “of a size that would
render the whole European banking system completely insolvent.”
South-Africa battles with exactly the same problems Europe and the
USA has! Believe it or not but also in South
-Africa the Real Estate bubble starts to deflate, also in South Africa
interest rates start to rise and also in South Africa municipalities
are broke. What we experience is a paradigm shift and not a
local American or local European problem. The weakest countries are
collapsing first....other will collapse later...domino, domino....more
The EU decided to print € 85 bn to bail out Ireland.
There was NO DOUBT in our minds that this would have been done.
Now that all is over, the Euro will recover until Portugal, Spain,
Italy or any other European country starts to play domino, domino.
Friday November 26, 2010 - 'The Euro Game Is Up! Who the hell do you think you are?' -
Nigel Farage MEP
And you are so naive and think your Private Pension Plan is
safe and won't be stolen away by the Authorities like happened in
Argentina? Exactly the same is about to happen in Hungary and
will repeat itself all over the Western World!...more
Thursday November 25, 2010 - Thanksgiving in
the USA....don't expect spectacular markets until Monday.
Totally expected. Domino, domino, after Greece and Ireland
yields for Government Bonds in Spain and Portugal spike up.
The domino game will extend all over the world....after
Europe (countries like Belgium and France are next) comes the USA where the crash of the municipal bonds seems
forgotten for the time being....Long
term interest rates in Greece have almost reached 12%, in Ireland +8%,
in Portugal almost 7% and Spain almost 5% Best case scenario we
shall have a DEBT MORATORIUM of Government DEBT in Europe. Because
this would have devastating effects on the Insurance companies,
pension funds and Bank reserves, we are fairly confident the EU will
just like the USA opt for QE (print money) so the Authorities can
blame Hyperinflation for all the problems instead of themselves.
Having said this, the QE will once the static is gone have a positive
effect on the stock markets and more important push the Gold sector
further up.
CASH and BONDS
will be the biggest losers! No joke....Get out as
son as possible and stay away....hyperinflation will take your cash
away, even if you keep it under your mattress!!!
There is NO WAY the EU will and
even can survive! The EU has been a narcissistic
political political monster from day one.
If you merge 16 small open economies, you get a large
closed economy. But here is the catch. If you assemble the leaders of
the 16 small open economies, you get a roomful of 16 small-economy
politicians. Economic governance through the European Council has
proved always cacophonous and often incompetent. It is an
institutional framework of finger-pointing. The Irish say they are not
Greece. The Portuguese say they are not Irish. The Spanish finance
minister said last week that Spain is not Portugal. There are no
prizes for guessing what Italy is not...moreThe EU was never an ideal candidate
for a single currency because: it did not have a centrally controlled
fiscal policy, or full mobility of labor, and it did not have a common
language. These disadvantages remain.
The rule of thumb during a banking
crisis: trust no-one, least of all the politicians.
"..Brian Lenihan, Ireland's finance minister, told Irish radio early
on Wednesday the banks had "no funding difficulties." - The
Financial Times, November 18 2010.
We told you over and over again the
Banks are bankrupt and will
rot to the core. At the same time, also totally
expected, the shares of the Banksters are dumped again. [Banks,
insurance co's, pension funds, life insurance co's, re-insurance co's
are to be avoided: not only is it dangerous to buy their stocks but it
is as dangerous to hold any deposits and/or other obligations with
these] In the USA no wonder it is Goldman Sachs who's keeping up
the appearances...Hopefully
you are aware that if you leave the management of your savings to the
Banks these will take your savings with them when they disappear.
It's the fault of the damn people not doing anything about it!
Appearing on the Alex Jones Show today, Texas
Congressman Ron Paul expressed his outrage and disgust with the TSA
and its unconstitutional naked body scanners and genital groping under
the transparent pretense of protecting the American people from
terrorists in distant caves...more
“If we tolerate this,” Paul said, “there’s
something wrong with us.” He added that the American people deserve
to be humiliated and demeaned by the government if they refuse to
stand up and resist.
If you decide to buy SILVER, DON'T buy Silver ETF's
( these are instruments created by JPMorgan and there are NOT properly
backed by physical Silver). The Horizon ETF is a better option HZU.TO
Whatever the Authorities are
telling you (trust no one, least of all the politicians), this is THE
END of the DOLLAR...more
Wednesday November 24, 2010 -
Tomorrow is Thanksgiving and as each year we
expect not a lot to happen until next Monday. Our service will
also be minimum until Monday.
Are
you investing with the Apprentice or the Sorcerer?
Let's assume the Gold
sector tops out in January, February or March 2011. Do you think it
will be wise to cash your profit and exchange your holdings of Gold
for US Dollars if you knew the Dollar would crash by 30%?Worrying
at this point is the bearish flag $-Gold is building in the top of its
bullish channel. But one needs to assert Gold expressed in other fiat
currencies before drawing a conclusion. Having said this, A CORRECTION
has to be expected sooner or later!
We have been bullish for the World Stock markets for some time
now. This however
doesn't mean that we are actually prepared to invest in them! Remember
what happened to the
Financials beginning of this
year? Those who invested in it all lost money....This is the
difference between Stock picking and Investing!!!
The US Dollar has been strong during the last weeks.
Tomorrow however the Thanksgiving weekend starts and I get the
impression it was the PPTeam interacting to ensure NO ACCIDENTS will
happen between tomorrow and next Monday. Remember that we have a race
for fiat money towards zero and it will be won by the Dollar and not
by the Euro. Worst case
scenario a level of $ 1.32 for € 1 is possible...We almost forgot that
the year end is close and that co's may have started to repatriate
profits made abroad. Add to this the Irish problem which probably also
have an impact on the Dollar/Euro in a similar way the Greek problems
had.
Today's financial markets have become dangerous Casino's where
short term fluctuations are controlled by the games of Hedge funds and
Large players. What many forget however is
that they also are subject to the laws of nature. As an investor
you either try to play the Casino and will loose for sure, either you
invest properly and sit tight as long as requested...until the Herd
makes your position profitable. Nobody has to be a sorcerer to
understand this!?
Is the rally over or will it continue? We have an extremely important development for
Silver...
Do check
both the charts of Silver in Dollar and in Euro and it becomes clear
what Gold is about to do soon....more
We have a similar development for
€-Gold. Our Point
and Figure chart doesn't leave a lot to imagination...more
Interesting is our PF chart of
Gold in Randand
important it is for the SA Miners. Worrying is the technical formation
of the €-ZAR Point and Figure chart.
Gold expressed in Yen
shows the same basic pattern as Gold expressed in Pound Sterling.
Interesting is also our chart of
Gold expressed in Swiss Franc.
and we also have an interesting
schoolbook formation on our PF chart for
Gold expressed in CanDollar.
For our many friends and readers in India and Russia
we have added the charts ofGold in RupeeandRuble.
Not a single chart
looks toppy...
Tuesday November 23, 2010 - History repeats
because Government is ALWAYS and without EXCEPTION corrupted to the
point that government always dies by its own hand [
Martin Armstrong].
Government ensures a good portion of the fiat money they create goes to the Bankers, Administration, police
force, TSA and army as leaders need these for protection and survival. [It is
said that at the time of Constantine (end of Roman empire) there were
more Government people than there were tax payers]. Protection is needed
as the people start to experience the incompetent management of
Government because of higher taxation and more regulation.
It was excessive taxation that undermined Rome as an empire: because
conquest became impossible, Roman leaders turned towards its own
people taxing them to the point of driving industry and capital out of
Rome. The Irony is that is was the Government employees rioting
in Greece and that it is the Government Employees in countries like
Belgium which are unhappy.
Crisis investing VI pictures what happened in Chili during the
hyperinflationary depression which ended in 1981. A
similar story like we saw in Zimbabwe. Today Chile has one of the
smallest Public debts and Banks were again split in Deposit banks and
Investment banks...more
[note that in the EU we already have wage and price controls]
Irish Debt is € 50,000 per
household. We know that the level of PUBLIC DEBT is
extremely HIGH.But nobody seems to
understand that once Interest Rates starts to climb like it is happening
in Greece because the markets starts to understand there is NO WAY
Government can repaid its debt, higher Interest rates will take the
bottom out of the system.
The pigs have wings and they fly: "Specialist from the IMF and the EU
arrived five days ago in Dublin to check the books of the Irish
Government and Irish banks and to see how much Money they would have
to print. The funds will be given to the Irish government who will
re-distribute them to the Irish banks. The Irish population will have
to refund the total amount plus interest."
Which ever correction we
may see for the Gold sector, remember at all times that we are in a
SECULAR BULL TREND. Having said this, it is not
hard to picture what will happen as not only $-Gold breaks through the
top of its bullish channel and accelerates but €-Gold,
£-Gold, ¥-Gold,
CanDollar-Gold, Swiss-gold, etc...also do!
Silver is leading Gold and we are
about to see some dramatic action soon....Gold
and Silver Seniors and Juniors are confirming last weeks action !!!!
We have published a
chart of how our
Juniors advanced compared to GLD and
other Stock market indexes. Impressive I must say.
The
Gold and Silver
Seniors are doing their part of the job
and tell us what we can expect for Gold and Silver between today and
the spring of 2011.
One of our key
investment policies is to safeguard as much
purchasing power (real money) as possible so we can BUY the
opportunities the coming crisis will offer. In order to succeed one
must restrain from trading!!
Monday November 22, 2010 - The public always
does the wrong thing. Propaganda makes your life and will ultimately
also take your savings...once people realize they have been lied to,
they revolt. Off course it is a lot easier to "believe" Politicians,
your Banker and Talking Media you SEE each day than to try to read and
understand a message published on some Web site.
Spain
and
Ireland have ghost towns. European propaganda pretends Europe won't see
their Real Estate bubble burst!? We heard this kind
of stories and denial before in other parts of the World (the USA,
Spain, the City of London, Dubai, England,. The complementary map
comes with pictures of new ghost houses in Ireland....more
.In 2005 and 2006 when I wrote that the American and Spanish Real
Estate Market would collapse , most
people thought I was an idiot (some even said so) for nothing in their
minds (incorrect signals are sent out) indicated such could happen. Real Estate was
still selling well, the
slow down in sales would be nothing more than a correction (real
estate happens to have corrections now and then) and the Bull run
would resume soon. Most continued to invest in the sector
and they added even more
Real Estate to their exposure by purchasing
the first Foreclosures. But then the Real Estate Bubble did burst
after all and the Herd got chained to bricks and mortar,
to their house and enslaved for life by a Mortgage contract
and negative equity. What an easy and effective way to control
people....[People who travel around look at Society and Economic
systems from a distance and are actually dangerous because they SEE
the falsifications and twists]
Fractional Reserve Banking
and fiat paper money need exponential growing amounts of fiat money to keep the
system floating. Propaganda
(Real Estate is one of them) ensures all of you participate in this
effort. Each one who buys Real Estate and signs a mortgage creates
money and so helps the Authorities in keeping the system alive. Each
one who buys a car on credit so creates money helps the Authorities in
keeping the system alive. [logic Mister Holmes: the more money you
print, the less it is worth]
The
Bond market continues to
disintegrate. In 2009 we wrote the Bond Market was an accident waiting
to happen.In a couple of months time, the
profits made over 2 years have been wiped out. Expect
with time bonds and (AA, A) to default al over the board. When it
happens the principal and the interest on these bonds will be lost.
Treasuries will last somewhat longer but their value will either be
wiped out by hyperinflation, either by a debt Moratorium.
Municipalities and even Governments have been issuing more and more
debt but contrary to Paper Money there is a limit on the amount of
debt one can create and the chickens are coming back home to roost.
Mister Prechter, in a
system of Fiat Paper Money Inflation and Hyperinflation ALWAYS
precedes Deflation. We
do have life historic proof of this statement: Chili,
Turkey, Argentina, Zimbabwe,...
And -off course - Europe
races to bail out Ireland! After the typical
European Political polka...why would they let Ireland and the Euro
crash!? After all the rescue is made with Fiat Paper money created out
of thin air and it is only the European citizen and his children which
shall pay for it...more
$ 11,000 fine and a
possible arrest if you refuse airport scans and pat downs.
Believe it or not , this ain't Ripley's and it is happening
in the USA....Fear is used to take away
even more Liberty in the USA...more.
I remember that years ago I told people we would come to a
point where we would have to ask Government the permission to pee,
what clothes to wear,...The western world is coming closer and closer
to a Mao society (which went bankrupt) who ordered all to have his Red
Book and wear Mao jackets.
Friday
November 19, 2010 - It's not Gold and Silver going up, it's paper money
burning -
Resistance is now support for the
Gold
and Silver sector.
Gold and Silver had to cool down and to consolidate
before it can resume its Bull Run...This is about to happen NOW.
November and December are traditionally very strong months for Gold
and Silver. Ireland will be bailed out and so will ANY Government
and Financial institution running into problems. QE (money printing)
in infinity we shall have until Hyperinflation brings it all down. In
the mean time the Bond bubble is deflating and is so silently stealing
billions and trillions of savings....
Checkour PF chart for
€-Gold is you still are in doubt about about $-Gold will
perform.
Commercial Bonds
have also fallen in STOP LOSS...more
Dollar to
Become World's `Weakest Currency,' Drop to 75 Yen, JPMorgan Says.
We have our own support and resistance levels, but important is that
even JPMorgan has to admit the Dollar is heading towards its Real
Barbaric value or ZERO.
The
Plunge Protection Team momentarily does a
good job in keeping the Dollar from crashing on the Forex markets
while the bn $ 600 of new bonds (QE) are being sold. Be
aware that part of the Bonds are bought by Financial Institutions
overseas and that these have to buy DOLLARS as they invest in these
Bonds.
The New President of
the IMF (International Monetary Funds) is an old chap from Goldman
Sachs. Wall Street keep the ranks closed!
Thursday November 18, 2010
It it amazing how people like to believe the situation is
better overseas. In Europe
they think of the USA as a heaven (run by Obama) and preach the end of
the Euro and the EU and in the US they see Europe and it social system
(which is about to go bankrupt) and a secession of the USA and
the end of the Dollar. Few understand both systems are in fact
interlaced and if one fails, the other also will. Fractional Reserve
Banking and the creation of Fiat money out of thin air is what it is
and is destroying the financial systems and economies on both sides of
the Atlantic.
Gold will go to
unimaginable prices as Western society implodes.
Neither the right nor the left has a clue of how serious conditions
are. Politicians haven't got a clue of economics. They act as
idiots running the madhouse and it is a shame the people haven't
stopped them. As I have told you for years, there is no
practical solution to what many administrations have done.
Printing money, monetizing debt and debasing the Money (they are so
bold they call it QE) is not right but it is the only tool
left....but John Law had to sneak out of Paris at night dressed as a
women!
The mid-November to late
December period is another seasonally powerful period for Gold.
Bottom fishing is a terrible difficult hobby.
What we can tell, is that a close above $26 puts Silver back In
explosive mode. When it does Gold will also do.
Gold and Silver Stocks now are likely the greatest
market play of the past 100 years. On condition
that you're invested in the GOOD ones!
This is WHY we have our
CHARTS !!!!A picture often tells more
than one million words...and it take less time to look at it than to
read and read and read....information which is often incorrect or at
least tainted. Perhaps the most troubling aspect of the Gold
Market is that what we do not know vastly exceeds what we think we
know. Yes, we watch the price of Gold and the Commitment of Traders
reports and the Comex Inventory levels and the weekly Eurosystem sales
reports and the ever suspicious ETF inventory reports and much else
besides. How much of this is accurate is questionable.
Wednesday November 17, 2010 - 2009 Bond
crash: what we wrote in 2009 is
happening today in domino style...Iceland, Greece, Spain, Portugal,
Ireland, US Municipalities,... -
more
Big
Sister turns up the heat: new-super enhanced pat down more invasive.
The TSA’s invasive new screening measures include
officers literally putting their hands down people’s pants if they are
wearing baggy clothing in a shocking new elevation of groping
procedures that have stoked a nationwide revolt against
privacy-busting airport security measures....more
The people and even Pilots start to revolt...who would
not!? Too much is too much....The crisis we have is not only a
financial, economic one...it's also a crisis of SOCIETY! What is
happening in airports today can no more be classified as 'Normal'.
Chicago Mercantile Exchange rises gold margin by 6%. or the
price of a contract goes up by $ 250.
A lot of static...but no fundamental changes...such can
ONLY impact the market in the short run. The best way to rub their
face into the mud would be to close down bank accounts with both JPMorgan and
HSBC. This is war and we have to take it to their
doorstep. The CME is just following orders
from it's master (JPMorgan and Associates).
WE HAVE BEEN WARNING FOR THIS during MONTHS....The US municipal
Bond
Market is collapsing and US Bond
markets lower as the Fed starts to buy (market) $ 600 billion fresh
Bonds. Luckily they (Central Banks and Plunge
Protections Team) succeeded in keeping the AURA over the Dollar (which
has been strong for the last days)...more
[ Important to know is that the FED just like the ECB buys Bonds
through connections in London and the Bahamas].
Interest rates in the USA are slightly higher!?
You ain't seeing nothing yet. A lot higher they will
be. We don't really mind as we know the stocks and commodities we're
invested in don't mind. In the 1970's at the time of the last Gold
run, interest rates were around 7% and Volker had to take them all the
way to 20% before the bull run of Gold could be stopped. Such cannot
possibly be done today as it would ruin the whole system.
$-Gold did fall through the $ 1360 level.
See our charts under Gold, Silver for the potential next support levels. Brace
for more volatility AND price levels moving through support and
resistance levels BEFORE they change direction. Such makes it even
harder for the Trader (short term) to make money. Understand
that as the bond market implodes, there will be initial weakness in
gold followed by tremendous strength.
We will have an outrageously volatile euro but expect the
dollar to be lower on balance. Corrections are
normal and often come at a time when nobody expects it. Most of the
time however they are initiated when markets are overbought. "They"
have good technical analysts...paid by the money they print.
Having said this these extreme currency fluctuations ( $ 1.42/€ last
week and $ 1.36/€ this week or 4% off in only 7 days!!!???) make it
impossible for business people to conduct 'normal business'.
How many times did we write this!? The ECB camouflages a great
deal of its Quantitative Easing in secretly being the buyer in the
bond offering of the country in question. The
Europeans had their training session before, during and after the
World wars. The media lauds the UNEXPECTED good buying in the
euro; the euro moves back into the $1.35 where the international
investment banks put out their short and do it all again. The bad news
is that Europe is courting a business disaster by their actions on
austerity (see yesterday) while at the same time doing QE in the
bailout and covert bond buying at auction. Greece has 110 billion
committed which is without any doubt covert QE.
Few people notice that today ALL markets move in symphony:
as the Dollar goes up, Commodities, Gold and Silver and the Stock
markets come down. Whether we consider stock markets in Europe or the
USA of Japan...the correlation sometimes is so blatant you can put
charts on top of each other and they will melt in each other.
We have published a chart for
Uranium in the Commodity section...more
The [financial] Media ONLY TRY to explain what is happening on
the Financial Markets EX-POST (after it all happened).
It is more and more obvious they don't know what they write about and
that they only succeed in creating more volatility. Advisable is NOT
to LISTEN to them.
Amazing is that there is absolutely NO MEDIA coverage of the
municipal Bond collapse in the USA!? The municipal bond market
is clearly in distress. California, the largest and arguable the
strongest state economy in the US union, is in the process of testing
the 2009 constant currency lows. The national municipal bond index has
already fallen on its ass. The 2009 lows were breached in September
2010.
Tuesday November 16, 2010
The Price of URANIUM continues to go up. So does
the price of the Uranium stock which we have selected (see subscriber's
section for
JUNIORS). Political
Empty heads have no choice but to change their minds about Nuclear Power
as the supply of other sources of Energy (Crude Oil and Coal) is
dwindling and their price soaring. Only a couple of years ago they
decided to close most of the Nuclear power plants...today the price to
built a power station has soared and the politicians changed their mind.
Al Gore has disappeared from Earth and people are experiencing Global
Warming was a Propaganda joke.
We're sailing through the Eye of the Storm. There
is a lot more to come...BONDS,
Treasuries and Cash will
be blown away when we're leaving the eye. Such is
already happening in Greece, Portugal, Ireland,...
The race of Fiat Money towards ZERO is not over yet.
Greece and Ireland are back in the News and
the pendulum is temporary swinging back in favor of the Dollar.
Important is not to forget that as China has important reserves of
Dollars and Economic power, the Chinese central bank is dictating partly
the exchange rate between the US Dollar and the Yuan.
$ 1360 - $ 1350 is still holding...to be
continued. Even if the support level doesn't hold, with the fundamentals
of today we expect the correction to be small and we're not about to
give up our Real Money so easily. Remember not to listen to the MOPE and
STATIC and to BUY the DIPS!
We've updated our
portfolio: + 5.60% expressed in Real
Barbaric Money and nice profits when expressed in Dollars and Euro's.
When we said we were bullish about
World Stock markets, we wrote they were
going up for the wrong reasons. Therefore one should
not get involved without important restrictions. Financial did
-technically speaking- break out beginning of this year. And yet we
decided NOT to get involved because of the BAD FUNDAMENTALS.
Europe is sailing straight towards a remake of 1933.
Unless the ECB takes fast and dramatic action, it
risks destroying the currency it is paid to manage (the Euro) ,
and allowing a political catastrophe to unfold in Europe. If mishandled,
Ireland could all too easily become a sovereign version of
Credit Anstalt – the Austrian bank that brought down the central
European financial system in 1931, sent tremors through London and New
York, and set off the second deeper phase of the Great Depression, the
phase when politics turned ugly...moreAs usual the European politicians need more time to roost the
chickens than the Americans need. In the end they solve the problem in a
similar way the Americans do: THEY PRINT the MONEY of as is said in such
a sickening sophisticated way: they use Quantitative Easing.
Monday November 15, 2010 - This week may be
very important for the Gold and silver sector.
Note
that the Two Year Subscription will only be offered until end of 2010 as
we expect that the High Inflation and probable Hyperinflation will force
us to increase our subscription rates dramatically in 2011.
As explained earlier HYPERINFLATION could already start end of this
year and we shall probably see it in 2011 and not later than 2012.
Agricultural products went up by 450%
year to year basis. Think about it, this is
catastrophic! If this is no
prelude to Hyperinflation, than we must be idiots. But it will ONLY
become hyperinflation once the propaganda fails and the HERD starts to
see it. Those who have not protected their savings will be
slaughtered...more
Oil and Coal have broken out. Natural
Gas is still building a bottom. A breakout however
will be for soon...more
Our Point and Figures chart of
HUI
(Gold bugs index) tells it all. Gold and Silver
shares have made more than one point by breaking through this resistance
zone. Let's see how the market react this week on the Push by the
Cartel. Try to look at a different way to this sector: "it's the price
of Fiat Money going down''....more
Friday November 12, 2010 - Today is also a BANK
HOLIDAY in most of Europe...
No
more War!? Treasuries (Government Bonds and Bills) are not even worth
the paper they are printed on. I have a complete
collection of Bonds which became worthless because of a Debt Moratorium
issued by the Authorities. I even have GOLD guaranteed bonds which
became absolutely worthless (except for their collectors' value). They
all date form BEFORE the 1st World War to after the 2nd World War.
Because those who lived those times have passed away, today people don't
believe it will happen again. What a big mistake they make...
The next bubble to burst is the bubble of
the BOND MARKET.
This has/is already happening in Greece, Portugal
and now in Ireland. Irish yields for 10 year Government bonds soared
from 5% last May to almost 9%. When interest rates rise, the value of
the bond falls to compensate for the new rate...The chart for Irish
Farmland (click on picture to enlarge) CLEARLY shows the BUBBLE it
was/is in. Trees NEVER grow all the way to heaven...not even Real Estate
trees!
Fractional Reserve Banking is in fact
worse than Usury.
Really amazing is that there are so many people
who fail to understand that Fractional Reserve Banking is, by principle,
worse than
usury. Most Religions forbid Fractional Reserve Banking like they
forbid Usury. When things get so bad that Banks are bailed out
by Governments instead of letting them go bankrupt, one can expect the
worst for the future.
The Gold Pool II is loosing its grip on
the Gold and Silver markets. History tells us the
Central Banks and Authorities NEVER win from Real Barbaric Money.
Important is to understand that Gold and Silver will - at a certain
point in the future - start to behave in a completely different way.
Hence be EXTREMELY PRUDENT each time you go back to paper money and
remember that it is WORTHLESS.
A glance at our chart of
Gold expressed in Canadian Dollar
explains why the Junior Gold and Silver mines have
skyrocketed. Our chart of Gold expressed in Australian Dollar is
revealing for the strength of the
Aussie and the picture of Gold.The Chart of Gold in Swiss francshows that the raids of the Gold
Pool II will at a certain point completely fail. If
you take some extra time and check our chart of Gold in Yen,
Sterling, SA Rand
(this chart alone will pay for your subscription) and Euro you
will have a fairly good image of what to expect for the Gold and Silver
markets, Major and Junior Gold and Silver stocks over the coming weeks.
A much better exercise than listening to and reading most comments.
Our Forex charts again are once more trying to tell us something
extremely important. Very interesting (as usual
because it is our Canary) are the charts of the British Pound against the
Dollar and against the Euro. Not bad at
all for the Euro I would say...Nothing
has changed the balance between the
US Dollar and the
Euro. Hopefully you used this November
11 correction to sell Dollars and buy Euro's !?
Thursday November 11, 2010 - Today is a BANK
HOLIDAY - A paradigm shift
we have - don't let you fool by the Gold Pool II !
The
Chinese know that Gold is Gold and Silver is Silver and
BARBARIC MONEY. Brace for volatile markets UP and
DOWN as the Gold Cartel/pool tries to bring its price down and the
Investors keep buying the physical markets and don't let you scare away
by TOP and BUBBLE prophets who don't know what they are talking about
and by the Central banks who do all they can (like the Gold pool I did
in the past) to manipulate the price down...
We see $ 1380 (level used
to be resistance) as an important Support zone.
The volume on the
Silver ETF (SLV) is
reaching record highs and we are concerned about a short term climax
top.It’s very hard to sustain a move of
this magnitude without a correction...unless...there are off course
always exceptions to the rule. Although it takes courage taking profits
during a bubble, I’ve learned through many experiences how important it
is to stick to a method and sell into strength. There’s significant risk
of a correction and limited potential on the upside short term. Yet, we
do have a special situation as Silver and Gold have been manipulated by
the Gold Pool II, as physical and paper Gold and Silver clash and as
Gold and Silver mines are/have broken out. AND we can only exchange Real
Barbaric Gold and Silver for worthless fiat paper money.
This is a fascinating battle between the
paper and the physical market...$30
is just going to be a small pause along the way to much higher prices“There
is an insatiable appetite for physical silver here and the shorts know
that, the shorts also know they are checkmated. The Asian buyers are
layering in bids to take advantage of bear raids in the paper market
which have been used to shake out the weak hands. Silver and Gold
spot trades 24 hours a day, so as the shorts
raid the market, physical buyers already have orders in to buy tonnage
of silver at a time on that weakness. The Bankswanted to target $25.50.
If they are able to do that it will have to be achieved on a sharp, fast
move down. The longer you hold the price down, the more physical you
are going to give up and the lines will cross against you...but the
Banks know where the stops are, they actually SEE them in their Books.
High Time for a change in reasoning!
Remember we have a paradigm shift. Why would one exchange REAL
ASSETS for worthless paper money?
If you still think you should sell some Gold and Silver shares, you MUST
use the proceedings to Buy REAL BARBARIC MONEY or Gold and Silver. If
you don't you just go back to worthless Fiat Money...Before you Sell,
take some time to READ and Check our Charts in the subscribers'
Sections.
Those who
still have doubts about how Gold is about to behave MUST check our
€uro-Gold Points and
figures chart.
It tells more than 1000 words.
Wednesday November 10, 2010 - No doubt the Gold
cartel [Gold pool II] is loosing its grip....
Which way Dow? Which way AEX, CAC, DAX,
SMI, EMZ????We have updated all charts in theWorld Index sectionand were able to add Objectives for certain
Indexes.
Interesting....more
Very interesting again are our charts of
the World Indexes
expressed in Gold.The Japanese
Nikkei and the Chinese Index especially. There is no doubt common
stocks are loosing against Gold.
This is unexpected...more
Our
LONG TERM CHARTS are a good confirmation of the scenario we
have written for the coming months and years...more
Inthe
Gold and Silver share section we had
some spectacular Bull Runs. Hecla mining is a good example. So is ASA. Don't
start to TRADE !!! Sit tight...there is more to come...more
The same remark applies to the
Gold and Silver
Juniors [updated](if you don't
have any, right now you must be biting your nails'...more
It
will be beneficial to the US Economy to have Harley Davidson
manufactured in India!? MOPE and STATIC is is
divulged by ignorant Media. There is no way that any production in India
can bring more for the US Employment...more
If you have to invest with the
information (MOPE & Static) sold by those guys on Television,
you really are unfortunate. The best they can do, is
act for a comic movie and try to fill up the impossible: daily
fluctuations. Sorry guys but Finances and Emotional Television don't go
hand in hand. And I now understand why these people always have to
shout.
For weeks now Subscribers can see how the
World Stock markets
are becoming Bullish. This is the prelude to
Hyperinflation and World Stock markets will go up in NOMINAL TERMS ONLY
FOR THE WRONG REASONS. Because this will happen when expressed in
Nominal Terms and not in REAL terms it is a LOT SAFER to store your
purchasing power in Stocks than keeping Cash and Bonds. It is
however EXTREMELY IMPORTANT to be invested in the RIGHT instruments to
ensure the Hyperinflation doesn't wipe away your money like it did
during the Weimar Hyperinflationary depression and it did during the
recent crisis in Zimbabwe.
Our portfolio Juniors is up by 136% since
August 2009. This is when we initially published
our shopping basket.
Monday November 8, 2010
Buying
Debt with Debt.
This is what Economists call Monetization of Debt and the
prelude to Hyperinflation. "This month will come in the History books as
The Month where Authorities started to Monetize their Debt.!"
Forget that a Run on the Banks could cause a Drama. The
Authorities are prepared and won't let this happen. Assuming a run
appears plausible they will simply nationalize the Banks to calm down
the Herd. In Europe during the 1960's and 70's many Banks were as a
matter of fact owned by the Government. This was also so for Airlines,
Railroad Systems, Communication (Telephone), Media (Television).
One can print an infinite amount of Fiat Paper Money but this cannot
be said about Debt. As a matter of fact, one can
create even more as it is done DIGITALLY. One can create A LOT OF DEBT
and create even more DEBT by artificially keeping interest rates LOW.
However there is only so much debt that can be created....more
We've reached a point where we don't understand how somebody can be
happy and feel safe with Worthless Paper money in their pockets and/or
worthless digital money on their bank accounts.
This also applies for Government Bonds and Treasuries
as these are nothing more but an option to buy this worthless money.
Gold can, because the characteristics of Gold, NEVER be a Bubble!
Gold is Gold and today like it did did 50
years, 100 years, 150 years, 250 years,...ONE
OUNCE of Gold buys a quality men's suit at any point in history..Gold is the standard by excellence that tells us how much Fiat Paper
Money is still worth. Although its intrinsic value remains equal
through history, its price expressed in Fiat Money can reach billions,
trillions and more....like it did during the Weimar Revolution and the
more recent Zimbabwe Hyperinflationary depression.
Friday November 5, 2010
$-Gold and $ and
€-Silver explode (the 2% rule is
shattered). Gold and Silver shares but also Commodities, Oil and Oil
shares follow in the wake. Don't delay your purchases. Now is the time
to readjust your savings. Gold broke through the $
1380 and today we forecast it will now prepare to break through the $
1420 on its way to $1450. Subscribers can check our objectives in the
subscribers' section.
Bonds are an extremely dangerous
Bubble. This past week Greek, Portuguese and Irish
Bonds were massively dumped by Investors. The yield of Greek bonds has
risen to 11,14%, in Portugal to 6,46% and in Ireland to 7,54%. Give it
some time before Spain, Italy, France, Britain and even Belgium joins
the ranks.
Our charts leave little doubt what the next objective for the
Dollar/Euro will be...moreand they show important key reversals on the charts of most
currencies expressed in Dollar.
Thursday November 4, 2010 "People are sick of voting because
voting changes nothing. It makes it only worse".
We
had a bottom of the Gold sector! Yesterday
saw a Failed intervention of the Gold Pool
in the Gold and Silver markets.
Clear is that "they" [Gold Pool II] are loosing their
grip on the Gold and Silver markets and Manipulation becomes more
intensive...but fails more and more. Buy the dips!
We also had a weak
dollar which is falling out of its election bed and a
consolidation zone. You have to be blind not to
see it! The level is .77 [check the chart in the subscribers' section].
The failed intervention is also visible on the chart of the Dollar index
left. It happened just before the Stop loss.
There are only two ways to Tax people:
direct taxation or indirect taxation by Inflation.
After the land slide in favor of the Republicans, the
only option left, is [Hyper]Inflation.
Natural Gas and Coal are coming alive.
Check the charts in the subscribers' section.
Wednesday November 3, 2010 - we told you what
would happen once Can-Gold would break out...
Crude
Oil [breakout] continues to do what we forecasted all these months.
Oil shares also. Even BP has digested the Gulf spill and
is back into profit...more
Commodity currencies or the Canadian
Loonie and the Aussie remain strong. We advised
months ago to use these Fiat currencies to park the Fiat Cash you have.
See if something has changed...moreHaving said
this, our new objective of the Aussie/Dollar is scary!
A commercial Silver signal failure can
happen for Silver as a significant of commercials
(JPMorgan, HSBC) on the short side, are forced to cover. This
results in a limit up. (We had it for October Cattle recently).
We expect the price of
your steak to DOUBLE in2011!
The
Glass-Steagall Act of 1933 was repealed in 1999 (Gramm-Leach-Bliley
Act - click to see who was so stupid to introduce this legislation)
like Gold was abandoned in 1971 by Nixon.
In Europe a similar changes were noted although not so
clearly defined. After the Hyperinflation (1981) in Chile banks were
again split up between commercial and investment banks.
Commercial banks could not invest their
money into the stock market. At that time the FDIC
was established. Over the past years however, as the Banks
melted away it lost BILLIONS...more
The
Dollar/Euro
is hovering at a dangerous level and building a COIL. The
Dollar will be devaluated soon in a similar way the British Pound was in
2009. Once it breaks out of this zone, it has important
implications for the dollar but also for Crude Oil, Commodities, Gold
and Silver, Gold and Silver shares and common stocks. The Swiss in confirming the
future of the Dollar and the Yen
already has. Even the
South African randis breaking out against the
US-Dollar. Take my words for it
that the Media will blame the Elections outcome for a weaker Dollar!
Many Newsletters write the
World Stock markets will break
out. Subscribers know we have been forecasting this for weeks now.
What the writers of the Newsletters don't explain,
is WHY the Stock Markets are breaking out and whether you will be able
to compensate for (hyper)inflation by investing in Common Stocks.
Tuesday November 2, 2010 - Technical indicators
for Gold again in Buy mode
Our portfolio of
Juniors has, since August 2009 (when we
advised to BUY) risen by 108%...more
QE (money printing) to infinity if will
be. The meeting of the American central banks
tomorrow and the European the day after tomorrow is nothing more than
narcissist window dressing. Nothing will change and it will be
Money Printing (QE) until the financial system collapses. During
this process we expect landslide elections and an exchange of leaders
who will do nothing more than make it all worse...until the Apocalypse.
We expect the Apocalypse to happen 1st in
the USA with the Dollar. The simple reason is that
there are a lot of Dollars floating. The collapse of the Dollar will
take down other Fiat currencies in its wake. The weaker ones will go
first....
Silver and
Silver stocks are a screaming BUY - also the Juniors.
First Majestic [FR.TO] has broken out!
Logic
Mister Holmes. In 1913, before the dollar had emerged as a global
currency, the US had 2,293 Tonnesof goldcompared with 248 Tonnes for Britain, 439
Tonnes for Germany, 1,030 Tonnes for France and 1,233 Tonnes for Russia.
The Americans' large gold reserves made the dollar a natural replacement
for sterling when the first world war crippled Britain's
financial position. The US
is now running a fiscal policy that has parallels with Britain during
wartime, which will undermine the dollar's global role at some
point....logic, for after all the Americans are some kind of British
descendants [in a similar way to the Zimbabweans] who were in the past
also colonized by Britain.
Potentially
the most important new factor in the gold market is China.
China now has more than $2,400bn of foreign exchange
reserves, but only 1.7 per cent of this is invested in gold. The IMF is
projecting that China will run a current account surplus of $2,600bn
during the next five years. If it does, its forex reserves could rise to
the $5,000bn-$6,000bn range. Even if it keeps the gold share of its
reserves constant, it will have to buy a further 1,000-1,500 Tonnes. Yet
the odds are high that China will want to expand the gold share of its
reserves in order to lessen its vulnerability to dollar devaluations and
strengthen the renminbi's status as a global currency.
The Potential for
Gold and Silver
Juniors is dramatic but you MUST adhere to the rules as
explained in the subscribers' section. Check the chart of Banro.
Since the Real Estate in Spain busted, 150,000
Spanish building companies went bankrupt and 5,000,000 people lost their jobs in
the building sector. Spain had one of the most extreme housing
bubbles in the world, and its banking system still is heavily exposed to the
property sector. Spanish authorities realized that without support the banking
system would likely collapse, and they have intervened with guarantees and a
plan to help banks sort out bad loans and recapitalize. In the end we believe in
a Pyrrhic victory, with most Cajas becoming zombies and recovery being weak and
delayed as Spanish sovereign debt continues to rise sharply.