"I believe that banking institutions are
more dangerous to our liberties than standing armies. If the American people
ever allow private banks to control the issue of their currency, first by
inflation, then by deflation, the banks and corporations that will grow up
around the banks will deprive the people of all property until their children
wake-up homeless on the continent their fathers conquered."
Thomas Jefferson 1802
Posted January 6, 2009
- Financial markets are communicating vessels:
The global money printing machine will soon begin to spill over into
precious metals, oil, and interestingly enough, industrial metals. Inject
enough money into a financial system and any stock market will go
up...whatever the fundamentals are. This is especially true if the return on
Bonds is negative. We have confirmation of Trend Reversals on
ALL World Stock Market indexes. The
correction/bounce we forecasted weeks ago is coming alive.
- The Bond bubble is alive.
Bonds keep on falling off their parabolic euphoric blow off.
- The Dollar will resume its slide in 2009.
Professor Buiter, a former Monetary Policy Committee member who is now at
the London School of Economics, said this increasing disenchantment would
result in an exodus of foreign cash from the US.
click here for more... Technically, we have a potential HEAD
and SHOULDER pattern in the make. If correct,
brace for 1.65 $ for € 1!
- Platinum (and
probably also Copper)
has also reversed trend and will probably perform better in 2009 than Gold.
- The real estate bubble is alive and
well in SA.
Click here for more...
Posted January 5, 2009
Posted January 4, 2009
One has to be blind not to see it!
Posted January 3, 2009
We wish all our readers (we have well over 2 million
clicks) a Happy and Prosperous new year. Fortunes will be made and Fortunes
will be lost. We are aware 'financials' and 'economics' are extremely hard to
UNDERSTAND. We are trying our very best to make it all as simple as
possible...and we are aware that often we ain't understandable enough.
Questions and remarks are extremely helpful to make this process easier.
Posted January 2, 2009
-
The bottom line is that we are entering into a Deepening
Hyperinflationary Recession which, in all likelihood, will turn into a Great
Depression.
-
We have extremely good news for
$-Gold holders. €-Gold,
£-Gold, can$-Gold,
Rand-Gold, Iceland Krona-Gold and Ruble-Gold holders already were blessed in
2008. Gold’s 8
month's long lasting ABC correction is finally over, which means gold, silver,
gold shares and the other precious metals are now poised for a rebound rise.
Once $-Gold breaks through the $ 880 double top, the next leg will take $-Gold
to $ 1,750.
(these are the objectives of other financial
analysts) .Keep your positions and do not sell. Now is the
time to buy new positions in gold and a selection of
gold and silver shares.
-
Crude oil
jumped to $ 46,34 per barrel: Happy New Year!? Where are
all the talking heads forecasting $ 25 per barrel? The mother of all support
lines did - as we forecasted - a great job! Our next objective is $ 75 or
the marginal production cost. Oil shares gained
up to 10% today.
Posted December 31, 2008
- Hyperinflation is caused
not by facts but by an intangible: the sudden realization
of what had been there all along but hadn't been recognized.
- Bear markets do
not last forever.
The biggest
bear markets are followed by the best recoveries.
- Help, the Russians are not
coming or how
Spanish Real Estate is flushed into the drain.
click here for more
- Today,
$-Gold
could well
break through the $ 880 double top formation! Happy New Year !
- The U.S. dollar has broken the up
trend in which it had been trading. That up trend
was destined to be broken as it was artificially induced by the collapsing
hedge fund industry.
- Obama or time for a change? Leaders must start
thinking outside the box. For example very few Americans realize that Henry
Ford completely redefined "classical" economics through the policies
undertaken by the Ford Motor Company in the 1920's. Under "normal" theory it
was assumed that a corporation could only increase profits by increasing
price and limiting supply. Ford did the opposite because he had a more
holistic view of the role of the corporation in society. He doubled the
wages of his workers, decreased the price of the Model T and remade America.
Posted December 30, 2008
- The situation between Pakistan and India is heating up.
Rising tensions between these two Nuke powers could
well push up Gold and
make it break through the double top it is building.
- Israel and Gaza. Israel and Palestine should be an
school example for peace and love. Instead we see a scandalous
crystallization of hatred and intolerance. People should know the situation
is a legacy of WW II, Britain and Churchill. Xmas and the New Year are
celebrated with bomb shells and rockets. A shame to humanity!
- It really is scary to think that we could again
experience a real Crisis with a capital C: not just
a bear market in stocks. If it happens, your stocks and mutual funds will be
about the farthest things from most people's minds.
- Market leadership for 2009 will come out of the
Oil, the Gold and Silver sector. UK stocks climbed
for a second day, led by oil producers after crude jumped more than 6pc
yesterday in New York.
click here for more...
A
loss-loss situation: If the
dollar holds steady,
Treasury bond prices are
likely to plunge; if Treasury prices hold steady, the value of the dollar is
likely to plunge. Either way, foreign holders of Treasury securities are
facing losses.
-
Harry Schultz plays the financial markets like he plays the piano.
His previsions are similar to mine. I unfortunately don't play the piano.
Luckily friends of mine do. Schultz predicts that the government will seize
and nationalize private 401(k) plans. We predict the same will happen in the
EU. It already happened in Argentina.
Posted December 29, 2008
- The next shoe to drop is Commercial Real Estate
with more losses for the Banks and Finance sector. As usual Britain is the
canary in the cage for was has yet to happen in the USA and the EU...click
here for more...
- 2009 will show the $ 40 price of Crude Oil
(liquid energy) was the biggest joke ever. Oil Companies
are buying Oil on the spot market. They store it on tankers and sell it
foreward with $ 10 profit per barrel.
- As long as the World Stock market
indexes are in a secular down trend expressed in Real Money or Gold,
it makes little or no sense to guess what the Stock markets are up to in
2009. Click here for more....
- British Pounds GOLD made
another brand new all time high at today’s London PM Fix coming in at
601.798.
Posted December 26- 27, 2008
- Most stock markets set year end down 40% to 50%.
Gold sets year end down 15% only
when expressed in Dollar. Expressed in most other Fiat Paper money,
Gold booked HUGE gains...or should we rather say:"
Fiat paper money booked huge losses"! Our model
portfolio has suffered but still shows a nice profit. A much better
performance than obtained by these so said safe, complex, uncontrollable and
sometimes extremely dangerous financial Bank investment instruments..
-
NEW DELHI/ISLAMABAD (Reuters) - India warned
its citizens on Friday it was unsafe to travel to Pakistan and the prime
minister met his military chiefs, while Pakistan canceled army leave
and moved some troops from its western border.
- GOLD: we have a Xmas
present for Gold holders. An up flag with a $ 980 objective after $ 880 is
broken.
- Tax can be avoided...Most people don't realize Inflation is also a
tax which is extremely hard to avoid. It is a hidden tax
which is also stealing away the money hidden under your mattress. People
voting in a certain way because they think they will see less Taxation are
making a horrendous mistake.
Posted December 24, 2208
Recession is officially 'IN' . We
have -as usual- the bad habit to run ahead and we unfortunately see Depression
and Hyperinflation around the corner. Authorities can create all the Fiat
paper money they want. What they forget however is that they cannot keep
expanding debt and that 'The Fear of the unemployment Ghost puts a damper on
the consumption.
Click here for more on the Xmas sales. .

Posted December 22, 2008

I bought equities, especially a lot of Financial equities in
2007. I bought Dollar Treasuries yielding almost 0%. I bought US real estate
in 2005 and EU real estate in 2007. I even bought CDO subprimes. I sold all my
Gold (what a worthless commodity) and I am buying Government Bonds with all of
the money. Today, I am selling all my Gold & Silver equities and Oil shares. I
don't believe the Dollar has become worthless paper money. I see growing
unemployment, I see rising prices but I still believe the authorities
pretending all is well, interest rates will stay low, employment will pick up
again and that by tomorrow Goldilocks will be back home. My banker manages all
my savings: he only lost half - I hope he will loose the other half in 2009.
Put simply, the entire fiat money system is in crisis - perhaps a
terminal one - judging from the calls for a new Bretton Woods agreement by
European leaders.
Posted December 20, 2008
“It isn’t rocket science to expect that the worst housing meltdown in 30
years, the worst financial system crisis since the Great Depression, the worst
consumer debt bubble ever, and a few other ‘worst ever’ conditions, would
result in a worse than usual economic recession.”
In 1934, facing a depression President
Roosevelt first confiscated gold from every American. Then, he unilaterally
devalued the U.S. dollar by 75 percent against gold. At a stroke, FDR
wiped out 75 percent of the dollar denominated debt (Treasuries) of the U.S.
Treasury.
Posted December 19, 2008
-
What's up next? By
now we should ALL know we cannot trust a politician nor a banker
for a second. Today they will declare "all is well
Madame la Marquise" and by tomorrow the
Media will be all over the place with the last drama.
-
The Bond market and the Treasury Bills
are telling us we are headed into an Economic Depression.
Although it is indicated to use the current wave (B) rally in stocks to
raise cash by selling certain positions, contrary to the general belief
World Stock markets could start to
behave in a Zimbabwean way and this is
UP. Yesterday’s price surge was historic in that it is the
first time ever that the Daily Sentiment Index of bond traders
pushed to 99% bond bulls. Only 1% of bond traders think prices will come
down, which is simply extraordinary. When everyone is bullish, and in
this particular case everyone really IS bullish, there is theoretically no
one left to buy in order to keep the trend intact, which leads to a
reversal.”
-
Saudi Arabia remains the strongest banking system.
Fitch downgraded the Individual Rating of 17 GCC banks.
While the average rating remains ‘C’, indicating adequate strength, most
face renewed vulnerabilities even if few face risk of default (and
governments would support faltering banks.
-
Oil at $ 40 per barrel is a time bomb which is
about to create a huge shortage over the coming year(s).
click here for more...
Posted December 18, 2008
- We told you the Dollar would turn on a dime:
$ 1.25
to 1.47 per Euro in only days time. Long term charts clearly indicate that what we
lived from August on to end of October, was nothing more than a ABC Bear
Market correction. Disbelievers will, in due time, be in for a bad
surprise. Our Mother of all necklines did her job well.
- We told you the Pound Sterling would
tumble towards parity with the Euro.
- Global Stock markets
are still in a consolidation faze: we have an expanding Triangle and a
potential reversed Head and Shoulders pattern.
- Crude Oil is hitting
the Front pages each other day as it is bouncing on the long term support
line.
- Gold and Gold coins.
After the Kruger Rands and Maple Leafs, the
major Swiss and Belgium Banks are also out of stock of the 100
gram bar. It is still possible to buy 1 kg and 12 kg bars, but for how
long? Have you tried your bank?
- $-Silver has broken
out of the box. Silver traditionally follows in the wake
of Gold.
Posted December 17, 2008
-
Our portfolio expressed in Real Money or Gold has been updated:
+ 6.7% expressed in Real Money or Gold and + 8% expressed in
Fiat Money since November 23, 2008 ; click here for
more...
-
The fact the FED lowered the interest rates to ZERO
means the economics
your child is learning at school no longer exists.
They can't lower interest rates below zero.
Ironically, the interest rates for consumers is not dropping,
as the remotest indication of counterparty risk has made banks reluctant to
lend to consumers.
-
Bonds
are moving up vertically, a sure sign that a market is in
a parabolic blow off run. When this bubble pops, it will make a lot of
noise and deliver even more pain: prepare to see confetti all over the
place. When 'it' happens, neither the Norwegian nor German Bond market will
be safe. Fiat paper debt and money will simply implode.
-
SALES! Crude Oil sinks to 4 1/2-year low
after OPEC cut. Western demand may be temporarily
shrinking. However GLOBAL (world) demand is not. Technically, Crude Oil has
(like the Dollar did) fallen back to the Mother of All Support lines.
Posted December 16, 2008
-
We see the Backwardization of the Gold price as the proof that the
paper Gold price is clashing with the physical Gold price.
This has serious implications.
click here for more..
-
As long as M3 (total money supply) keeps on growing at a rate higher
than the rate of growth of the economy it creates Inflation and not
Deflation as many talking heads incorrectly pretend!
click here for more...
-
1990 Japan plunged into the economic crisis which has NOT been
resolved yet. (we were one of the few forecasters of the
Nippon crash). It will only once ALL MISALLOCATED
funds have been cleansed out of the financial system. Not so hard to
understand?
-
December Tankan Survey:
Japanese Business Confidence Plunges To Lowest Level In 34 Years.
The closely-watched quarterly Tankan survey, released in
December, showed sentiment among Japan’s largest manufacturers fell the most
in 34 years, signaling companies are likely to cancel spending plans and cut
more jobs, pushing the economy further into recession
-
Gold is following the tracks
outlaid on our the Point & Figure charts. As expected it is climbing the
wall of disbelief. We know a lot of people who will have to eat their Hat
soon.
-
The Dollar is also
following the outlaid tracks in the opposite way: € 1.25 to € 1.42 in just
nine working days. Time to kiss the Dollar good bye..
click here for more.. The bear market rally caught a tremendous amount
of speculative longs on the wrong side as the bottom fell out of it.
-
As expected the Fed has lowered the key interest rate to ZERO!?.
Only 0.25% to 0% go for Zero. We have not the slightest doubt the ECB to
follow in the wake of the USA. A wrong decision at the wrong time which will
in the long run only make things worse.
-
High time to buy Gold and Silver
equities. Don't be late, prices are going up by 5% to
15% each day! What we see on our Point & Figure charts are almost perfect
examples of trend accumulation/reversals.
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