Ben Bernanke has little sense of the damage he is about to provoke. A central banker who talks about throwing money from helicopters is not only arrogant but foolish. Nearly a century ago, the great economist Ludwig von Mises observed that massive central bank easing is invariably a form of cowardice that attempts to avoid the need to restructure debt or correct fiscal deficits, avoiding wiser but more difficult choices by instead destroying the value of the currency.

Von Mises wrote, "A government always finds itself obliged to resort to inflationary measures when it cannot negotiate loans and dare not levy taxes, because it has reason to fear that it will forfeit approval of the policy it is following if it reveals too soon the financial and general economic consequences of that policy. Thus inflation becomes the most important psychological resource of any economic policy whose consequences have to be concealed; and so in this sense it can be called an instrument of unpopular, that is, of antidemocratic policy, since by misleading public opinion it makes possible the continued existence of a system of government that would have no hope of the consent of the people if the circumstances were clearly laid before them. That is the political function of inflation.

 

• Spain loves putting all its eggs into one basket and enjoys siesta. We already informed you about the super-stupid way Spanish banks got involved in the Spanish REAL ESTATE bubble and persisted.... Unfortunately they haven't showed the back of their tongue... , and if it carries on like this, we may start to see a lot of Basques and Catalans crowding into one exit. The state pension fund – the €64bn Fondo de Reserva, known as the ‘hucha de las pensiones‘ – is buying Spanish sovereign debt at a vertiginous pace. ...monetization Hecho in Espana!

•  

• The brains of the Silver shorts must have been frying yesterday....this happens if you behave in an irresponsible way and you keep tuning in to the Propaganda of the Authorities and Banksters. STUNNING Silver Rally Off Lows Sets The Tone For Precious Metals Price Explosion

• Governments and central Banks manipulate Gold and try to destroy it. As USUAL and as history teaches us, it is the fundamental natural economic forces which make the price of something. The longer Government and Central banks suppress a price, the more violent and dramatic the subsequent spike!

Tuesday August 24 - Once the West tanks, the East (China and India) will tank exponentially !

• At least half of the apartments in Shanghai and Beijing are empty, the China Daily reported today, citing an online investigation by volunteers conducted in 100 Chinese cities. No Real Estate boom grows all the way into heaven...not even in China and certainly not in Belgium!...more

• Forget the double dip 'THEY' try to sell you. This will be a hyperinflationary Depression and Commercial Real Estate confirms our point of view. Aug. 19 (Bloomberg) -- U.S. commercial real estate prices fell the most in almost a year in June as the economic recovery showed signs of faltering, Moody’s Investors Service said.
  The Moody’s/REAL Commercial Property Price Index dropped 4 percent from May, the company said today in a report. The decline was the biggest since July 2009, and pushed the gauge down 0.9 percent from the start of the year...more

• We don't like what we see when we look at our charts in the section of Bonds and World Stock markets. Assuming gold and Silver start to move upwards in an exponential way, the Dollar will crash and the World economy will slide into a clearly defined Depression which will probably be worse than the 1920-30 depression. As usual the Herd knows better and doesn't believe "IT" will take DRAMATIC proportions. Better be warned and prepare NOW. Once the black Swan accident happens it will be too late. People will loose their life time savings in a fraction of time...because of the hyperinflation and price controls RENTS will be barely enough the buy a bread and Pensions will barely suffice to buy a bottle of Soda.

• In Turkey Unemployed people who are not job hunting are also not considered as unemployed. Even a member of a household only working for one hour per day is not considered as unemployed by the authorities. Employed people earning 250 liras (€ 100 - $ 150) per month also don't make part of the official statistics. This is how easy it is to cook the figures. Some sources mention a  60% unemployment rate. Such situation could become explosive...more

Monday August 23 - - Last Friday 8 banks had to be closed in the USA ! - Tout va tres bien Mme la Marquise...

• The situation becomes extremely dangerous. Interest rates have been artificially pushed down to zero levels and the day is close the forces of nature will bust this bubble and the Bond market will crash....Once this happens we will know the Hyperinflationary depression will begin, pension funds and insurance co's will go bankrupt....World Stock markets will suffer dramatically because of this final deleveraging...Gold and Silver will disappear from the market as the Bad money will chase the good one.

• For weeks now we have been warning that we don't like what we see when updating the section of World Stock Market indexes. Today ain't different! If you go through ALL charts in the section, it becomes easy to see what's about to happen in the near future. A Chart tells a thousand words, 100 charts tell 100,000 words...and that's a lot.

• The Monetization of Debt has started. We now only have to wait until this seeps through the Herd and it initiates Hyperinflation...[is it then so hard to understand the Fed is buying its own debt through the UK?]

  Even as the public debates aggressively on the nature of bond bubbles and whether they have a footing in the US economy, Tim Geithner's office has no intention to discover the denouement of this particular polemic, and instead is preparing to belch the lastest batch of US-backed paper. In the upcoming week the US Treasury will issue a total of $102 billion in 2, 5 and "curve sweetspot" 7 year notes, with nominal amount all in line with expectations.

  • August 24 $37 billion in 2 Year Bonds
  • August 25 $36 billion in 5 Year Bonds
  • August 26 $29 billion in 7 Year Bonds

  And in the unlikely event that China decides to reorient its purchases to even more non-US debt and sell existing holdings as it did in June (previously discussed on Zero Hedge), there is always that UK-based nest of direct bidders who just can't get enough of their own, pardon, American issuance. With holdings of over $360 billion and rising, the otherwise insolvent UK needs just $440 billion to become the second largest holder. And since it has purchased $280 billion in the last year alone, the probability that the Fed, pardon, the UK will soon be the second, and possibly biggest holder of US debt is distinctly possible...

• One single universal currency is nothing but a wet dream of Politicians. It is a much a wet dream as it was to unite Europe and such is (anybody with some brains left understands) economically impossible and unproductive. The strength of the World lies in its diversity...Gold is the ultimate Barbaric money and history teaches us not one King, Queen, Ruler or politician has been able to overrule the final will of The People.

• Welcome to the DIS-SERVICE SOCIETY. It takes up to 2 days to change an intercontinental flight because of language barriers and the incompetence of the employee in the call center!? It can take up to 2 hours to buy an airfare for a continental flight!? How the heck can a society function profitably with a bunch of incompetents trying to run it?

Friday August 20 - What is coming is more sinister and less understood than the 1929 experience -

Joe Average and a politician stand on top of the World Trade Center.

A wind gust blows them off.

Joe immediately sees he's gonna die and starts to pray.

The politician can be heard saying: "Well so far so good" as he passes the 4th floor.

• Surreptitious U.S. and EU/European government intervention and manipulation have become pervasive in the stock market, economic data, and the price of gold and are making things so much worse than would have been the case if the markets had been allowed to purge their excesses naturally.
  "Nothing is real and honest in the U.S. economy and financial system; it is a chimera, built upon lies and manipulation conjured by the ruling elite." [Ian Gordon] 

• Another example was the publication of the US industrial production. .. The Fed reported that industrial production was up 1.1% in July and this got all the media headline attention. Stocks rallied on the bullish news implying economic recovery. Buried in the coverage was that June’s number, originally reported as an increase, was downwardly revised to minus 0.5%.

• It's not the price of Gold which is rising but the integrity of fiat paper money which is falling. 1971 Nixon closed the Gold window and ever since the Authorities and (central) banks have been doing all the can to keep the bankrupt financial system afloat. 1981 the system almost collapsed. It was saved by Paul Volcker's bell. Today such action has become impossible. Whatever is written and said we have passed the point of no return and are heading straight to a new financial black Swan.

• They try to re-invent the EU (the Romans, French and Germans already were pursuing one Europe) in the name of Globalism (dangerous). They introduce the Euro and by doing so "steal" an important amount of your savings and money. Next they appoint thousands of new Bureaucrats and politicians and built Palaces for them...and before you know they introduce an European Federal tax....This is how far you can push the Herd...You can even push them so far that they go out and give their live!

• Failure of London/New York Gold pool II. Had a trader consistently bought gold on the London AM Fix and sold it the same day on the London PM Fix and repeated it every day from April 2001 through to today the cumulative loss would be $500 per ounce. Yet gold has been in a bull market during that time and a "buy and hold" strategy over the same time period would have returned a gain of $950 per ounce.

• Central Banks and Banks are in DEEP TROUBLE. GATA's Adrian Douglas in support of his forecast that the latest central bank gold price suppression scheme is "on the verge of the most spectacular failure." Macleod writes: "Here is a major banking crisis in the making, mainly as a result of the central banks' continual attempts to rig the market finally coming to a head. It is a time when the whole idea of a world monopolized by fiat currencies is losing credibility."

• Wal-Mart quietly raises its prices - some prices hiked over 60% ! Wal-Mart Stores (WMT), which for years has touted its prowess at lowering prices, has been doing the opposite as it tries to bolster its bottom line amid stagnating sales.

• Amazing is that they have been able to window dress the dramatic American financial problems by citing all the problems of the European FPIIGS knowing that the US fiscal and monetary conditions which are backing the Dollar are far worse than what is happening in Europe. If the US government would follow the GAAP accounting rules the Gross National Debt would exceed $70 trillion, not $ 13 trillion Those living in Europe seem to be so blind that they can only see the deluge of the Euro. Those living in the USA only see the end of the Dollar!? We know which Fiat Paper money will win the race to ZERO and it will not be the Euro!

• Wall Street tumbles, spooked by shock US jobless, manufacturing data...we warned you over and over that we did not like what our charts showed us...more

Thursday August 19, 2010

• If Erdogan gets an "EVET" (yes) as an answer to the referendum which will be held in Turkey on September 11, the country will end like Venezuela did after Chavez got his way a couple of years ago: today in Caracas there is no water service and only 4 hours of electricity a day! Chavez litterally f@#$%&d up this beautiful country.

• We would have been far better off if the Bank/Financial industry would resemble to the internet business where a defaulting node is directly replaced by a new one. Globalization [this is exactly what is done by keeping the too big to fail alive] reduces volatility (short term boom and busts) and so creates the illusion of stability. It looks like a sand pan in the desert (harmless) but kills as you drive into it. Today almost all banks are interrelated. If one fails, they all fail...we live in an extremely dangerous time!  Because the accident will happen FAST and UNEXPECTED, today, more than ever one MUST organize his savings in a particular way.

• The more socialist a country's orientation, the easier it is for large corporations to survive (they resemble the self preserving government monster and its bureaucrats) and the harder it is for newcomers to grow, blossom and survive because protective socialism kills them in the womb. But comes point where large corporations cannot survive because the cost of energy becomes too high (complex societies never survive expensive energy).

• The price of Food commodities continues to rise and is giving the Authorities a headache as it makes it hard to camouflage the Inflation figures.

• Don't forget to check and recheck our Gold and Silver share fundamentals, the categories of Gold and Silver shares and a real life scenario.

• $-gold closed at $ 1230 per ounce! ...I make this statement specially for all those who in 2001 declared I was an idiot because I advised to buy gold (and silver) and for those "Wise noses" who affirmed $-Gold but also €-gold would never break through the 1,000 level! For the same wise noses, I reaffirm gold will trade at $ 1300 and $ 1450 soon.

• The president of Argentina [Cristina Fernandez de Kirchner took over from her husband] has a face and the name of an Angel but in reality she's worse than the devil. Argentina has - like most countries do - been cooking the inflation figures. Nevertheless the situation in Argentina is extremely bad. The inflation is world's 3rd highest. According to private consultants in Buenos Aires and some provincial governments which have their own statistics offices, Argentina ranks third in the IMF inflation list which has Congo with 31.2% at the top followed by President Hugo Chavez Venezuela with 28%...more

• Goldman tells its "Special Clients" to sell gold even as it raises its target on Gold and even as Gold resumes its uptrend. This is the STANDARD SERVICE you get by consulting this kind of financial advisors... by doing so, you pay for their year end bonuses, marble buildings, Five star Hotel expenses and secretaries...very expensive compared to the € 295/$399 we charge as a basic fee to our subscribers. We actually started to advice to buy Gold in 2001 at $ 250 (less than the subscription charge) and are 100% sure the price will go up at least another $ 399. If you think we're not worth it, and prefer to listen to the advise? provided by Goldman Sachs, Fortis, and others...we wish you good luck.

Wednesday August 18, 2010

• Those who try to make some fast cash should better buy a trip to Las Vegas or Monaco. Investing is not about making a quick deal.  Those who were in for a quick profit LOST A LOT in 2008. Those who did not understand we have a paradigm shift lost their pants in 2008 [Bank shares simply crashed]. Those who have been waiting for a quick deal and a quick profit by buying gold and silver shares [partially updated] have se far been unlucky. Their investment strategy however is correct and we only need some time before these shares will come alive. Once they do, these most FAST and VIOLENT.  The chart of RandGold is very consistent. At this time one of the better ones [when expressed in Dollars]. Newmont and Royal Gold are better performers. All by all the objectives for our selection of Gold and Silver shares are impressive. As usual at this time only a fraction of investors understand this....

• Weird is that certain Sport stars and Automobile racers have become active again...do they have an unexplained urge to recover some important losses of their savings because they were not invested properly and/or left the management of their savings in the hands of bankers?

• Stocks are REAL ASSETS. Because of this the Dow and the SP500 will go up when the Dollar falls and come down as the Dollar rises. Because of this Stock are a safer investment than Bonds!

• Banks and Financials are bankrupt and rotten to the core. We have updated the charts in the "Financials" section and we don't like what we see.

• In the Gold and Silver juniors' section. Check Lake Shore Gold, First Majestic Silver, High River Gold, Great Basin, Anatolia,...DURING THE MONTH OF JULY WE HAD VERY CLEAR BUY SIGNALS (see yellow markings)

• Oil stocks and drillers are still asleep. Not a lot of excitement here....Except for those who followed our advise and bought BP shares during the worst of the Gulf of Mexico oil spill and took action after the bullish flag for REPSOL became evident.

• €/$-Oil  is still in an uptrend and is building a dangerous explosive Triangle!

Tuesday August 17, 2010

• Gold will continue to rise to new all time highs! Banging the close is illegal, manipulating commodity prices is illegal, usury is immoral, Ponzi schemes are illegal and immoral, Stress Tests are  big joke...and yet all of these are being practiced by the Authorities and the Gold pool II. They will continue to do so until they loose all grip on the Gold and Silver price. Manipulation of the truth has been done for centuries so the Herd could be mislead. Today is not different. The longer the Gold and Silver price is manipulated down the more powerful the upswing will be! For this reason you must make sure you're IN NOW!

• Paper Gold and Paper Silver and double counting are also used to manipulate the real physical market. And they are a mighty weapon...more

• The Federal Reserve Bought Approximately 80 Percent Of U.S. Treasury Securities Issued In 2009. No wonder Treasuries are almost at an all-time high!...[we'll soon find out how much treasuries the Fed bought in 2010....all done with paper money - off course -Why is it that they can do something we would be locked up for ? !..more

• European/Belgian interest rates on Government Bonds slide (read: are being manipulated) under the 3%...Don't buy any unless you want to commit financial suicide.

• Turkey lived a hyperinflation in 2001 and since the economy has highly improved... Turkey is the South Africa of its region and it has a young population...more

Monday August 16, 2010 - Gold is on the cups of a parabolic move-up!

• Ignorance creates Chaos. Many people automatically JUDGE but in their arrogance they have not the slightest idea they are wrong. During this action they feel good because they are supported by the Herd which moves into the same direction they are moving in. By the time the Herd realizes it is acting incorrectly, it is too late to act...[I've seen and heard European people judge about the Americas: they NEVER visited the USA nor do they speak nor understand English!?...]

• Goldman Sachs goes Goo-Goo for Gold!? We went Goo-Goo for Gold in 2001 when you could buy it for $ 250...poor Goldman and poor investors following Goldman. Goldman dedicates 9 pages to a regime change in which it goes openly bullish on gold. If there is one flashing red light saying the peak price for any asset has been hit, it is a Strong Buy signal by Goldman. The report will likely result in a brief pop in spot over the next 24 hours as the idiot money rushes into the latest Goldman trap. Alas, it also means that GS is now offloading. Be very wary of market dynamics over the coming weeks! Unbelievable is that so many investors which have already been robbed by Banksters and Financials keep on doing so....What is wrong with these people? Why do they keep trusting the Devil? Use ANY DIP to add to your Gold and Silver positions!

• The next bubble to bust is the Bond bubble (which are in a parabolic spike) and for northern European countries we now have a busting Real Estate market...and still, many investors keep buying Real Estate!?  What is wrong with these people? A house in nothing more than bricks and mortar and these also war out and get old..

• Our Corporate bond index has rise from 110% in July 2010 to 133%. A bubble in the make it is!

• The charts in the Silver section have been updated.

• As usual our charts of Gold expressed in Yen, Euro, SA Rand, Swiss franc, Aussie, CanDollar, Russian Ruble confirm each other and the supremacy of Gold.

Friday August 13, 2010  - All is well Mme La Marquise. People line up for housing vouchers, banks go bankrupt, the Fed admits it will get worse and the double dip bubble will bust into a Depression. The Dollar correction is nothing more than a dead cat bounce...repatriation of funds by a dying financial system!

• 30,000 line up for housing vouchers, some get rowdy...more

• Fed Looks to Spur Growth by Buying Government Debt = monetization of debt = initiation of the Hyperinflationary depression!  Oh yes, we're stupid narcissists who like to see ourselves talk. But what we write is correct and it ALL takes into account the ECONOMICS of REALITY and not the fairy tales of Keynes and other monetarists. Better keep your breast wet and your Gold and silver safe...more

• Obama will provide another $ 3bn (Quantitative Easing) in housing aid for unemployed. The administration was required to launch the HUD emergency loan program by the financial regulatory bill signed by President Barack Obama last month...more

• America today looks like the USSR in 1998. It is a bankrupt Mickey Mouse Economy...more Our view is that the USA will bust into a Hyperinflationary Depression before Europe does. Dangerous is that the Social Mattress of Europe won't allow the old lady to recover and that she could well pass away and slide into a Moroccan theme during the coming years as the Pension funds (Europeans must be very naive to believe their pension is safe!) and other social advantages are wiped out by the financial crisis. The American society is extremely flexible and there is little doubt the USA will recover a lot faster.

Thursday August 12, 2010 - Yesterday we had extremely nervous Forex markets....

• Kelatan (NE Malaysia) is the 1st country re-introducing Gold and Silver as Money. The introduction of Gold Dinar and Silver Dirham in the state of Kelantan is not a new idea or experiment, it is the return to the medium of exchange that has been known for 1400 years throughout Dar al-Islam as Money of Shariah taking its legislation from Allah’s Revelation and Rasul’s Sunnah. On the 12th August the government of Kelantan will start moving with the current, Divine Current, and every stroke in the direction of the current would bring Kelantan 10 times farther than a stroke against it; the first stroke will be the payment of 25% of salaries to public servants in Dinar and Dirham; all state companies will be accepting payments in Dinar and Dirham is another stroke; 600 shops will receive stickers “We Accept Dinar and Dirham” – yet another stroke...more

• This summer will be a last call for Gold and Silver shares and juniors...more

• 2001 in Turkey a used color television set sold for 30,000,000 Lira (€ 20). Most people could not even afford one...2010 most investors living in the Western World can (just like the Turks and later on Zimbabweans) 'believe' it's impossible to see similar life styles.

• No surprise to us the World Stock Markets were weak. On many occasions we wrote we didn't like what we saw and we think there is little to add as we don't fill in the picture AFTER the facts like most financial newspapers and newsletters tend to do. We try to be consistent with our advice!

• It is absolutely no surprise to see the Dollar index and Euro correcting after its non-stop slide and landing on the 200 day Moving Average. Important is to stick with the medium and long term picture.

• €-gold shows a break away gap. Seems the Gold train signals the time has come? History is being written....and few who see it. If investors would UNDERSTAND it, it would be impossible to buy ONE TROY OUNCE of Gold.

Wednesday August 11, 2010

• The Fed to spur growth by buying more debt...Quantitative Easing or printing money leads to Hyperinflation and not to deflation...more  Printing money just adds more fuel to the hyperinflation fire!

• “Financial Armageddon . . . within the next six months to a year and a collapse In Internet Time.”  Never in US history has a recession struck after several extended months of emergency ultra-low interest rates. This will be the first such occurrence. The policy response from the USFed must therefore be limited. They cannot reduce the official interest rate, unless below 0% (which did happen briefly in Japan). The nation stands on the doorstep of hyper-inflation. The only available tool within the USFed tool bag is Printing Pre$$ activity, pure monetization of both USTreasurys and USAgency Mortgage Bonds.” [Williams-Shadow Statistics] -

• In the EU by 2012, all stocks and bonds MUST be digitalized and safe kept by Banksters. As of that date any debt moratorium, capital gain tax, private pension fund confiscation and WEALTH TAX can be done automatically with the assistance of the Banks.

• A General Wealth Tax for the EU is highly probable. Know that in the past Politicians went so far to tax a house by the number of windows it had and that they even taxed balconies! It is completely impossible to deflate a house or land and to hide it in a safe...

• We're still in OHLALA land of misleading propaganda. It's called a double dip recession which in fact if already becoming a Depression. Private bankruptcies are on the rise, the private sector is still NOT hiring, in the USA food stamps use are at record high and in West-Europe most Vacation spots are deserted. Scaring it is.

• Analysts in the West are paying insufficient attention to commodity price inflation generally.

• The dollar will take a short walk off a tall building a lot sooner than later. ..

• Gold is taking off and on its way to $ 1300 and $ 1450!  Gold and Silver are not a revolution, they a merely a return to the true nature of mankind. Every day it becomes more clear to the many that we are faced with two choices, between true and false, between instability and stability, between inflation proof and inflation. What will you choose?

Tuesday August 10, 2010

• Gold and Silver are extending their bull run. At this point it is extremely important to follow closely how Barbaric money is behaving as it can possibly engage in a accelerated pattern and to make sure you follow closely the guidelines of our investment roster.

• BIS gold swaps mystery is unraveled. HSBC, Paribas and Société Générale are (off course) the three banks which were involved...more

Those who are still in denial and/or have no gold and do not plan to invest in Gold should be aware that the Bank of International Settlements (BIS) have increased its Gold holdings by 5 since the beginning of 2010!

The BIS is very well informed about the dramatic dangerous financial position of the Western world financial system and it should be noted that they also increased their Gold position before the actual peak of Gold in 1981.

The chart to the left is EXTREMELY bullish for Gold which is actually also going through some very important short term technical patterns.

Extremely dangerous for non allocated Gold holders is that about 400 Tonnes has been transferred from a few (unreliable banks) to the  BIS.

• Anyone who doesn't understand that the COMEX is a manipulated illusion isn't paying attention. More and more investors around the world are coming to understand this, which is why there is a movement into the physical. Real gold versus paper gold -- which do you own? [Michael Kreiger]

• I think it's insane for anyone to have gold within a bank. The banks identified in the swaps were HSBC, Société Générale, and BNP Paribas. These banks are swimming in structured products and Gold and Silver ETF's.  The entire purpose of gold is to escape the banking system once it becomes so big, complex, and fraudulent that there is no place to go but collapse upon its Ponzi scheme structure.

Monday August 9, 2010

• Going through life without traveling is like walking through a library without reading a single book. As long as you have not experienced certain other parts of the world and different life styles, you will never be able to really understand these.

• Investing like your parents did without making your home work and taking into account the paradigm shift we have, is like visiting a library without reading a single book. There is no doubt such is extremely hazardous to your financial health. Especially if you stay invested in Real Estate, Bonds and Cash.

• A major problem is that many investors incorrectly 'Think" they are wise investors and don't need the opinion of a professional because they were - at a certain point in their life - lucky enough to collect an important amount of money/savings. These can and will be lost overnight in case of a financial accident. Examples are the Weimar Revolution, the financial crisis in Argentina (all foreign currency holdings of Argentineans were confiscated and used to pay off part of the foreign debt. Later on all PRIVATE PENSION savings were also confiscated by the Authorities). Paper Gold and Paper Silver won't be able to keep them safe!

Friday August 6, 2010 - do you really know how much a trillion is?...if so, picture $ 450 trillion!

• Derivatives are weapons of mass financial destruction engineered by the Banksters to steal from the people. The irony will be that exactly these weapons will destroy them! The least I can say, is that these have a nuclear power. Credit default swaps ($450 TRILLION) are especially dangerous and they keep growing like weed. Major dealers of derivatives are Barclays Capital, BNP Paribas, Bank of America-Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank AG, HSBC Group, The Royal Bank of Scotland Group, Société Générale, UBS AG and Wells Fargo Bank...more

• The battle between deflationists and Inflationists has been won by the Inflationists! Hard to figure out how the deflationists explain the bullish trend in crude oil, Coal (and other commodities)..more

• If you think the EU is in a worse shape than the USA, try to explain why the US Senate decided to send $26 billion [Quantitative Easing/Money printing] more in federal aid to cash-strapped states. Out of the 50 American states, 40 are in a bad financial shape...more

• Bankers must be really retarded: today they go so far to pretend that the ban on export of Russian Agricultural products can be Deflationary... What is wrong with these guys?..more There is no doubt higher food prices are unexpected and Authorities will have to cook their Inflation indexes twice before publication.

Thursday August 5, 2010

• How many Financial Newsletters do you read and subscribe to? Making 50% profit and more a year? Trying to find out which stock, commodity to buy or sell and when? Day trading? Enjoying the challenge?...Investing can be easy and rewarding if you don't make it too complex. Investing in Gold and Silver is simple, straight foreward. You don't have to check earnings, read multiple newsletters and you can simply store it anywhere...far away from the Authorities. Try this with a house!

• Sorry for those (financial analysts, bankers, politicians and media) who see a recovery and no dip. They are all wrong! Our World Stock market section and the PF charts tell the truth and nothing but the truth...more

• Ride the wave...Gold and Silver are up, the Dollar is down...

• Our €-Gold objective PF chart is an extremely important one. Scenario # 3 has been activated and a CLEAR trend defined. This chart is a MUST for ALL Gold investors...more

• Weeks ago we wrote that France is/was an economic accident waiting to happen. There is a horrendous decline in French export share...more

• Interest rates will go up quicker than anybody expects and this will put another damper on the real estate sector...more

• Reckless Europe beats reckless America at property bubbles...Whatever is said and written the European Real Estate bubble HAS BUSTED and European Real Estate prices WILL CRASH just like American and Spanish Real Estate did because the European Real Estate bubble is, just like the American Real Estate bubble the result of fractional Reserve Banking, the creation of fiat money out of thin air and the misallocation of these funds...more  [note: Real Estate prices in the EU peaked 2 years after the peak in the USA...]

Wednesday August 4, 2010

• Deerfield beach, Florida, where Condo's cost less than a car...

  The housing bust has made owning a home a lot more affordable -- but in some places, prices are extraordinary; you can buy a nice condo for less than the cost of a new family car. Some cities have dozens of attractive condominium listings selling for $50,000 or $25,000. There are some selling for less than a new Toyota Corolla. And these are not derelict hovels in crime-ridden communities: These homes are often in move-in condition and located in nice neighborhoods. "Not to sound like a salesman, but there are some real bargains out there," said Kevin Berman, a broker with Bankers Realty Services in Fort Lauderdale, Fla. The housing bust has taken down the national median home price by about 23% since 2007, according to the National Association of Realtors (NAR). But condo have fallen even further, down about 25%. In Sacramento, Calif., condo prices have fallen 59% from what they averaged in 2007, according to NAR. Miami condo prices have plunged 65%, and in Las Vegas they are off 66%. Prices of individual units are down even more. One condo in Deerfield Beach, Fla., that sold for $115,000 five years ago now lists for $25,000. That's a drop of nearly 80%...more

• Federal Reserve to start deflation fight with Quantitative Easing = money printing next week...more

• $-Gold and Silver and Gold and Silver mines or you have to be blind not to see it...more

Tuesday August 3, 2010 - we have dramatic and very important shifts!!!

• Last Friday we warned again for the Negative technical divergence on the Bond markets. As the deflation rhetoric intensifies and scares the hell out of the gold community, it’s not hard to find a bond bull praising the virtues of fixed investments. Talk, however, is cheap. Money flows suggest that the bond bulls and all their bravado are standing in front of oncoming steamroller. Connected money, huge bulls in April, has turned statistically bearish into strength. Technically speaking, the up trend appears to have been broken. Keep watching US Long Bonds (TLT) for the completion of a distribution sequence known as a “Three Drives to a Top.”...more

• Remember that a reversal and potential crash of the Bond markets indicates the Monetization of Debt has been initiated and the Hyperinflation will follow soon. Lower Bond markets mean HIGHER interest rates. Higher interest rates mean higher Mortgage rates and more downward pressure on the Real Estate markets and more risk for the Credit Default Swaps, those financial institutions who manufactured these and those who bought and used them.

• €-Gold is bouncing off the top of its uptrend channel...more

• The Dollar has fallen out of a short term bearish Head and Shoulder formation indicating a weaker Dollar and suggesting stronger Gold and Silver. [click on the chart below for more]

Monday August 2, 2010

Banks and Authorities sit between a Rock and a hard plate.  

Pension plans (private and public), (Life) insurance co's, social security, Medicare, etc....not only have a problem because actual decreasing contributions have to be used to pay for an increasing amount of expenditures (all baby boomers are now becoming pension boomers) but at the same time their mathematical reserves are being destroyed by the monetary policy of artificially kept low interest rates [by law these institutions have to keep the largest part of their reserves in Government paper/bonds which have a negative real yield]. As long as the interest rates are artificially kept low, these Real Reserves are slowly but surely being destroyed. The day however that interest rates brake loose (like we had in Greece), the rate of destruction is increased. Whatever is pretended by the Authorities, the odds that a Pension Boomer will receive a REAL PENSION is ZERO! Having said this, the only way for the Authorities to postpone their inevitable bankruptcy and debt moratorium is to exponentially increase Quantitative Easing (printing money). The longer the Authorities succeed in postponing the Hyperinflation through the deflation propaganda, the more dramatic the coming Hyperinflationary depression.

Most leaders and Bank employees don't have the slightest idea of what structured products are, how money is created and what the correct Economic laws really are.

Education is a very important part of Society. It is a lot easier to sent an 18 year old boy to War than to convince a 40 year old man to die for a cause. Most politicians studied Law or Politics and Social Sciences and have no clue of Economics and Monetary History. Almost no University teaches Monetary history. The very few who do study Economics have been brainwashed with incorrect/false principles. Monetary Economists like Keynes and Friedman are promoted as having the only true visions and the names of Von Mises and Hayek (the Austrian school) are often not even mentioned . Some professors go that far to advocate that more taxation can lift an economy out of a recession/depression and politicians like to explain how the money they drain out of the economy by raising increasingly higher taxes is necessary for the public welfare of Society. They candidly forget to mention how in 1989 the USSR went bankrupt overnight for applying this kind of policies. Reading and applying Karl Marx to society is the formula by excellence to destroy it. Those who visited East-Europe before 1989 have seen this with their own eyes. If worst comes to worst and the system is not allowed to correct itself 'soon' through a bust, the western world and Europe could well end up as East-Europe (before 1989) or Morocco/Algeria and other north-African societies.

Saturday July 31, 2010 - Inflation and Hyperinflation policy is only possible with Deflation propaganda...and this is exactly what is happening!

Each time more Quantitative Easing (money) is requested to lift the economy out of the recession. In the end the impact on the economy of the so created money out of thin air becomes 'Negative' and the forthcoming depression is a lot worse than had it be in the 1st place if no interference/manipulation of the economy would have happened. The remaining question is to find out whether at that point the Stock Markets will come down like they did during the Great Depression or whether they will hold/go up in nominal terms as a result of Quantitative Easing (Zimbabwe effect). In each case it will probably happen over night (like we saw in 1989 in the USSR) and investors will have no time to readjust their savings.
 

• What the recession will not kill, the legal system will. Structured products (Tak 21, Tak 23), CDO's, Credit Default Swaps and a bunch of other unregulated and uncontrolled financial products were created by the Banksters with only one goal: not to serve the customer! Having said this, not only the Bank is at fault for selling crappy financial products but also the Investor which has been BELIEVING the fairy tales "The Bank" sold him: any investment where there is no or zero risk but nice rewards always is a dangerous investment.

• Yesterday 5 banks were closed in the USA: Coastal Community Bank, Panama City, FL  Bayside Savings Bank, Port Saint Joe, FL,  Northwest Bank & Trust, Acworth, GA  LibertyBank, Eugene, OR
  The Cowlitz Bank, Longview, WA

Friday July 30, 2010 -

• The Death of Paper Money is imminent. Hyperinflation will come like a thief in one night.! It is difficult to write a scenario of how it all will unfold, but there is no doubt it will happen!.. And off course...do you REALLY think the Authorities and the Bankers will confess and tell you the money they are printing will be worth ZERO in a couple of years from now!?...

  Corruption became rampant. People were stripped of their coat and shoes at knife-point on the street. The winners were those who — by luck or design — had borrowed heavily from banks to buy hard assets, or industrial conglomerates that had issued debentures. There was a great transfer of wealth from saver to debtor, though the Reichstag later passed a law linking old contracts to the gold price. Creditors clawed back something...more

• Corruption there also is with Financial Newsletters. There are indeed few good and honest ones (most newsletters are drowning in propaganda and marketing). Other newsletters and financial reports are printed by financial institutions and for this very reason they simply cannot be trusted. Most investors forget that Good wine takes years to age and free investment advise  in the end often costs 'A LOT OF MONEY'.

• The Dollar has fallen back into its secular down trend channel. Not only did we have a reversed Head and Shoulder pattern, but also has the Dollar eased back below its secular down trend line on the Point & Figure chart. When we look at the complete process it very much looks like a small edition of the 2008 deleveraging.

• €-Gold has thanks to slightly weaker $-Gold and a weaker Dollar come back to an affordable price level...more about the €-Gold objectives and support level

• The Bearish flag we indicated earlier on our PF charts of Gold expressed in different currencies [ British Pound (with stop loss July 1st), South African Rand, Yen, Swiss Franc, Aussie, CanDollar... ]did clearly indicate the spring bull run was over and a price correction was in. At this point it also indicates which potential size the present correction will have.

• Only a week ago we clearly indicated the Bonds showed a HUGE TECHNICAL NEGATIVE DIVERGENCE and were a clear sell. Remarkable is the similarity between the 2008 deleveraging, the 2008 Dollar and Bond run and what we had (in a lesser degree) in 2010.

• Investors who shift their savings to China will be in for a bad surprise once the Depression sets in. China is a High Order Capital producer country and these traditionally suffer more from a failing economy.

• Deflation can just be ruled out...it is just impossible to see this now. Out of thin air, the U.S. government created 2.75 dollars for every dollar that existed in the entire country just one and a half years previous.

Thursday July 29, 2010 - Gold is the only form of honest money which has no counterparty which will survive the coming financial crash. Buy the dips!

• We expect the volatility of Gold to increase but physical Gold must not be sold under any circumstances...Faze I of the actual Bull market started in 1999 and  ended in 2008. We are now running the 2nd Faze which will be followed by a 3rd spectacular faze. During/at the end of this last faze nearly all paper money, bonds, treasury certificates, etc. will default. [during this 2nd faze it is possible to see $-Gold test the neckline of the Reversed Head and Shoulders pattern or $1000-$1050. This would mean a correction of 15% only].

• If the Authorities keep doing exactly the opposite of what needs to be done, the Western Societies will slide into a 100 year (two lost generations) depression: Europe and the USA will fragment: the EU would fall apart and the American states would secess from the Federal Government. During this black years unemployment could easily rise to +35%. Social security, Medicare, private pensions and pension funds won't be able to support the collapsing background situation. It will be the dead of the Keynesian economics. Having said this, even today it is hard to understand how most pension funds (which are undercapitalized) will be able to grow enough provisions to cover their future mathematical risks when interest rates are being artificially kept at these low levels so that Government debt can be refinanced at lower interest rates.

• Remember to BUY the DIPS and NOT to SELL any PHYSICAL Gold. And yes, as we expected a weaker dollar and a Gold price hovering around and slightly below the actual levels is pushing back €-Gold, CHF-Gold, Can$-Gold, £-Gold and ¥-Gold to the bottom of their uptrend channels.

Since the beginning of 2009 our Portfolio grew by 50% expressed in fiat Dollars/Euro's...and "12,78%" expressed in Real money or Gold. Important is that we stayed away from CASH and out of Bonds (Treasuries and Gilts) and we haven't really seen the end of the Bull wave for our positions. Gold has clearly outperformed most Equities and this is visible when checking the performance table. Diversification is preached by Bankers for obvious reasons but is not always a good thing!!!!

 

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Inflation is a more than proportional increase of  the Money Supply, nothing more, nothing less.

Deflation is a more than proportional decrease of the Money Supply, nothing more, nothing less.

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