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"Banks did not see the problems coming up, why then would one listen to them?"

 

                              

"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

 

Happy 2009? Our predictions for 2009: click here for more...

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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