Flames
of anger: Strike fury over spending cuts sweeps Europe.
Social unrest is closely linked to the (hyper) Inflationary
Depression and will get worse as Real Spendable income falls. Cooked
statistics
only look nice in Newspapers and on Television...more
Tens of thousands march on EU's
Brussels headquarters
Strikes and protests in Greece, Portugal, Ireland,
Slovenia and Lithuania
French government unveils budget cuts of £34 billion
Demonstrator drives cement truck into gates of Irish
parliament
The European social mattress can only last for so long.
In order to keep the social system alive and running the
Authorities in Europe will be forced to increase taxation. There is NO
DOUBT all EU member countries (incl. Belgium) will at a not too distant
time adopt
Wealth taxation.
Real Estate is (like
automobiles) a taxation subjectby excellence
- and everything has already been put in place to tax
both Rental income and Properties. In the EU as of January 2012 ALL
securities must be digitalized and the beneficial owner traceable.
Having said this, a real estate cycle last 76 years: up
during 50 years and down during 26 years...more
Wednesday September 29, 2010
The
market capitalization of the Gold sector is, compared to the other
investment instruments extremely small.
Imagine what
will happen once funds move out of these sectors and into the Gold
Sector.
Gold and Silver may correct in the course of next month
and offer and ultimate opportunity to step in at these
price levels. Gold starts to accelerate its climb and it is possible
that we won't see a correction. If you have no Real Money (Gold -
Silver) you must buy some NOW! (this is a breakout) - Having said this
we don't take any pleasure to see $-Gold has broken through the $ 1300 -
Not good at all...a bad Omen for the Financial System, Bank
system, Economy.
Ride the wave - The Dollar is again weaker...we
hope your banker/adviser did not tell you that the Dollar would be
stronger than the Euro.
Tuesday September 28, 2010 - at the end of the
day, only Gold has proved to be a true and trustworthy currency over
centuries -
Gold is the
final refuge against universal currency debasement.
States accounting for two-thirds of the global economy
are either holding down their exchange rates by direct intervention or
steering currencies lower in an attempt to shift problems on to
somebody else, each with their
own plausible justification.
Nothing like this has been seen since the 1930s...more
There is no place to hide but Gold and
Silver:
"We are no
longer talking about a single country having a big depression but the
entire world.” Don't waste your time to chase Dollars, Euro's,
Swiss Francs, British Pounds or Yen. None of them is worth the ink and
the paper they are printed with.
Is the
Dollar
now a leader in the race to ZERO?
Japan has
intervened to stop the strong
yen tipping the country into a
deflation death spiral, though it too has a trade surplus. Brazil dived
into the markets on Friday to weaken the
real. The
Swiss
have been doing it for months. If
China continues to hold down
its currency, the country will import excess US liquidity, overheat, and
lose wage competitiveness. Central banks will sooner than later been
caught by their own game.
Can you find any Gold bubbles?
click on the
chart below for a detailed search...(swiss, euro, yen, sterling)
Monday September 27, 2010 - Gold is nothing
more but pure barbaric money - for this very reason it is impossible to
buy it "To Make Money" !
Unbelievable
that some Bank analysts 'dare' to call Gold a bubble!?
We understand that some financial newspapers do print
this kind of idea as it may shock many but they could at least publish
some kind of decent reasoning. If one reads what they publish it becomes
clear they have not the slightest idea where money comes from and what
the consequences are of the modern monetary policy.
They also
don't seem to know that Gold and Silver have been the ultimate
instrument to store wealth for centuries and they are an insult to their
own intelligence if they even dream that they will be able to change
this pattern. Better don't let those people manage your
savings....
Unbelievable that some analysts call Gold worthless and a dangerous
investment as it has no value because it isn't useful to the industry!?
Gold is valuable because it is not consumed, there is
a limited supply and the yearly production is relatively small.
Because of its characteristics it has always been the ideal way to store
wealth & purchasing power. Today people have the choice to store
their savings either into worthless fiat paper money, dangerous bonds
and other Bank manufactured/controlled investment products which they
can buy off-the-bank-shelves....but more and more they prefer to store
their wealth in barbaric Gold and Silver.
If Bankers did not forecast the last stock market crash (where
financials/bank stocks were amongst the biggest losers) then why would
one today believe their comments about Gold and Silver?
Unbelievable that some analysts don't even seem to know that Gold and
Silver have already peaked when expressed in other fiat paper currencies
weeks ago (the Gold price expressed in Dollar is in
fact lagging) and they fail to understand what Fiat Paper currencies
are, where they come from and where they are going to. At some point it
may be better to momentarily hold
on to Swiss franc,
Aussies,
CanDollars,
SA-Rand (no Yens)...but
before long ALL FIAT PAPER CURRENCIES will end up WORTHLESS. The point of no-return has been passed!
Having said
this it is intellectually incorrect to compare the actual Secular Bull
Trend for Gold to what happened in the 1980's: we have a paradigm shift
and the constellation for Gold has completely changed!
Unbelievable that many analysts fail to understand that the next
bubble to bust will be the
Bond market:
Bond are nothing more than an
option to buy worthless fiat paper money and Gold can de facto never be
a bubble as Gold is the ultimate barbaric money which has no counter
party. It is not the price
of Gold which goes up or comes down but rather the value of Fiat Paper
money which fluctuates on its course to ZERO.
Complex societies cannot survive with expensive energy. Most people wake up in the morning and worry about the
morning commute and getting the kids to school, paying the mortgage, and
thinking about a new car or the next vacation...and this is simply too
narrow a scale of thinking to address the problems we have....Joseph
Tainter. ...more(also check our literature list for a new
document)
Saturday September 25, 2010
To all those who still fail to see why the world is forcing a return
to that barbaric relic - the gold standard - our condolences: keep
shorting and don't buy any.
Gold is going to $ 1450
and much higher!
The Bank of Japan's intervention is Pathetic!.
Central banks succeed with interventions only for so long. The yen is
becoming a serious political issue in Japan with politicians facing
increasing pressure from their constituent businesses for the government
to take action to force a drop in the currency.
Today
it is better to stay away from the almost zero yielding Yen.
Why do we have a constitution if our leaders don't care about it!?
Not only in the United States of America but in many
other countries (ex. Belgium) the same is happening.
In
2013 Greek public debt is expected to hit its peak of 150% of GDP,
a level far higher than where it is now and dramatic. Add
to this the FPIIGS Debt/Problems of Spain, Italy, Portugal,....and the
cocktail becomes explosive.
Money can be printed without limits, but
DEBT is limited by definition...and the Euro won't survive Expensive
energy.
World Stock market indexes have been
updated and there is a possibility for a trend change.
So far, market have been trending side ways...but this could change...off
course, only in nominal terms. Important is to understand that Authorities
want to avoid the Japanese scenario of 20 years of side ward trending.
Important is to understand that World Stock Markets and common stocks
can change trend but that the Gold and Silver shares will be the leaders.
The
Footsie is a
canary in the mine for the world stock markets
and the
outcome of our published Candle chart is very important of what we expect
and for the future of ALL world stock markets and the Hyperinflation
cycle.
The Gold and Silver mines indexes: 3 taps and a breakout it is!
To all those who still fail to see why the world is forcing a
return to that barbaric relic - the gold standard - our condolences: keep
shorting.
Thursday September 23, 2010
Money
and Capital for Dummies!?It becomes more
and more apparent that practically none of the international bankers
understands our present monetary system. Most have no idea how currency is
created! How can anybody take the role of wealth protection seriously,
much less purport to manage both money and credit, unless they can see the
massive storms that lie ahead?
Where ever the USA goes, so goes the rest of the world. All
economies are linked and because of this we shall have the greatest wealth
transfer in history. Basel I, Basel II, Basel III, stress tests are
nothing but a box of BS. The world has a crisis because the banking system
has a crises as a result of fractional reserve banking and the creation of
fiat money ...and the crises isn't over yet. The worst has to come and it
will last until all of the misallocated funds are cleansed out of the
system.
The USA created more money in the last 2 years than it did in the last
200 years!
Too much money chasing too little goods
always results in [hyper]inflation and propels
GOLD
to new records...Those who buy GOLD with
Euro's are -at this
time - privileged: the weak dollar offsets strong Gold...but this may not
last for long. Remember that sometimes dips/weakness must be used to buy.
We updated the charts and did not like what we saw...the
Dollar index
broke an important support level
and we expect that the
absolute low will be tested BEFORE the Spring of 2011.
Remember the Dollar is a RESERVE
CURRENCY and that its behavior has and will have a serious impact on the
World Economy.We also worked out a short term objective
(mid 2011) for the Dollar index.
The EU tried to create as much money as the UK and the USA.
As a result
€-Silver
made a fresh record! The multi-billion dollar question is whether YOU must
buy Silver or not and prefer to stay with worthless fiat paper money and
negative yielding so said government and/or guaranteed
Bonds.
Not making your home work and listening to the wrong advisors can
cost your life time of savings. Remember we have a paradigm shift.
We're living the transition faze towards Hyperinflation.
This is the faze where savings are high because consumers
'hope' prices will come down [deflation propaganda]. As soon as they see
prices won't continue to come down but keep going up, we shall move
towards the next faze = hyperinflation...read
more
Cotton has surged 31 percent this year.
Cotton for
December delivery jumped 1.15 cents, or 1.2 percent, to settle at 99.37
cents a pound at 2:38 p.m. on ICE in New York. Earlier, the fiber advanced
to $1.0198, the highest price for a most-active contract since June 19,
1995.
Cotton bottomed from late 2008 and has sustained a progression of
higher reaction lows since early 2009. It has found support in the region
of the 200-day MA on a number of occasions and is currently quite
overextended compared to that mean.
These is such a supply shortage in the market that your steak will
probably cost double in 2011.
Pension funds have more structural problems than ZERO and NEGATIVE REAL
INTEREST RATES.
Baby boomers are now 60 years old or
older, and have started receiving pension. In the meantime, the number of
people who pay a pension premium is smaller. What's more, pension premium
is determined by wage, which has been on decline. So, pension special
account overseen by the health ministry is having a tough time.… More
outlay than income in the pension system means that they need to tap into
the reserve we have.
Wednesday September 22, 2010
At
least we know there is a NOMINAL bottom under the Dow Jones. "Fed Statement--Will Print More Money If Stock Market
Declines"... In plain English the Fed announced that they will print
more money if the SP 500 declines substantially. Nothing like an explicit
Fed guarantee to support asset prices. First reaction from the market
seems positive with the SP 500 reversing most of its losses.
Unfortunately, the stock markets will advance only when expressed in
Nominal Terms and will continue to crash expressed in Real Barbaric Money.
One hundred trillion Zimdollars bought nothing in less than one year.
"Ask Not Whether European Governments Will Default, but How and When?”
UK house prices have fallen for three months in a row while in August
UK mortgage lending dropped to a 10-year low of $15 billion.
It looks as though the UK housing bubble is finally
bursting after a massive double top in the market, the classic technical
indicator of a coming big drop back to previous lows.
New record for $-Gold and $-Silver...but we told our readers months ago
this would happen.
Brace for $ 1300 - $ 1450 and
higher. Today's new high is not really exciting!
Yet, if you were to conduct a poll
on the street asking adults if they were aware that gold and silver
recently traded at record prices, I would be surprised if more than 1
percent admitted knowing this information.
The Dollar resumes its slide....the downtrend has never been broken!
Yesterday an important level has been broken.
Tuesday September 21, 2010
UK
Proposes All Paychecks Go to the State First. Karl Marx
isn't dead, he just moved from East to West. The West persists in adopting
a system of Government control. Democracy has become an empty RED SHELL
and whoever pretends this, is politically incorrect!?
The multi
billion dollar question is WHY does the West adopt a system the EAST has
stopped using because 'they' experienced it didn't work?....more
Diversify your portfolio and you can be sure to end up with below
average results.
Most people don't know how to invest
properly or invest with no structure at all.
This is like
putting eggs in a basket without any bottom. It
doesn't make any sense to invest in a weak currency like it doesn't make
sense to buy a stock of disadvantaged sector just because some analyst
puts it on a buy list. After asserting the currency risk, it is important
to decide which instrument is best and safest (cash, bonds, stocks, real
estate, commodities, gold) and last but not least a choice has to be made
about the sector one can invest in. Only when this home work has been made
you can select a stock, bond, commodity, currency, real estate, etc...to
invest in.
Parents won't have wealth to pass on, report says
Future generations should not expect to inherit wealth from their parents
following the ravages of the worst financial crisis since the 1930s, a new
report has warned...more
Many financial newsletters cluster.
The same
stocks/bonds are advised and often there is no logic strategy in what they
advise. An actual example is the
Cement industry which will suffers
because of the Worldwide over supply of Real Estate - even in China (see
our publication of last week).
No inflation?
so how do they explain thatthe Reuters Commodity index rose by 20% between
June and September? An increase of 20% in 4 months time is an increase of
80% on a yearly basis.
Still believe we have deflation? Our charts in the subscribers' section
will convince any disbeliever that he is wrong...more
Now that $-Gold is on the move, all fancy names jump on the wagon:
Merrill Lynch, Fairfax IS, UBS and Credit Suisse...a
bit late they are...Goldonomic readers jumped on when $-Gold was trading
at $ 250 - $ 300 and have best seats.
Monday September 20, 2010 - So what!? a new
high we had for $-Gold...but an all time top we had weeks ago for €-Gold
and
£-Gold...
During
the transition to Hyperinflation the savings rate always increases
momentarily because people "think" prices will fall
again. They save more because they think they will be able to buy cheaper
later. At a certain point however they realize prices will continue to
rise and decide to exchange all of their paper money for goods as soon as
possible or NOW: a hyperinflation is born.
Hopefully the market will give investors a decent ultimate opportunity
to buy
Gold and
Silver mines.
Once shorters have to scramble
to get out of positions, this sector can be surprisingly strong. We had an
important BUY signal (and several text book examples) and you had to be
blind not to see it.
Minefinders is one of them.
Anglo
Ashanti has just closed out their $1.58 billion losing hedge book as gold
reaches for a new high. Better check the charts one by one to get
an idea of what this market REALLY looks like!...more
Last month we advised our Subscribers to BUY Gold and Silver stocks,
but also
Juniors.
What's wrong with most of these money managers and Bankers?
By advising to buy
Car manufacturers (sometimes they ironically
advise to buy Financials/banks), they show they haven't got the slightest
clue of how to invest in the 21st century. Interesting is also that most
don't even talk about Gold and Silver mines?
Saturday September 18, 2010
Fiat Money has no place to go but Gold. "If all currencies are
moving up or down together, the question is: relative to what? Gold is
the canary in the coal mine. It signals problems with respect to
currency markets. Central banks should pay attention to it."
[Alan Greenspan].
Today, enormous amounts of wealth are held as "someone
else's
thoughts of value" not value itself. In this day, as not
in the past, the loss of paper value as a concept will destroy the very
foundation of wealth that this economic system is built on. This drama
has started and is well underway!
Gold is the only currency that cannot be
debased, debauched, polluted or defiled by men. It is, always has been,
and always will be, a store of value, a preserver of wealth and a
securer from the plundering of Central Bankers.
Gold and Silver mines are working their
way through an important resistance line. Buy the breakout!
It occurs that what we have written days and months ago
has become reality and that there is little we can add. Except for those
who accumulated Gold and Silver stocks and Juniors to buckle in, sit
tight and enjoy the ride.
Just to give some examples: Silver
Wheaton was checked as breaking out 4 weeks ago; Randgold is yellow
tagged and has 4 *'s!
Though
Japan, Brazil and South American countries have been buying Dollars
in
an effort to depreciate their currencies, the selling pressure of Dollar
denominated Bonds and Dollars has been even larger.
Most Commodities
(Cotton, Coffee, Cacao) sit in
a solid Bull run. Prices are NOT rising because of
Globalization (such would be illogic) but rather as a result of
(hyper)inflation. The price of Cotton (+25% in 2010) has reached a 25
year historic high.
Friday September 17, 2010 - we told you it
wasn't a good idea to travel to the Desert this Summer and that those
who have no Gold and Silver MUST buy the dips...! Don't even dream of
trading this market...
Silver
shines better than
Gold!
What is the
difference between
a Candle with a long
Bullish tail
and aCandle with a long bearish
tail?
We published a chart as an example in the
Silver section...click
here.
Having said this at this time we're in for more than we
asked for as $-Silver is working its' way through an important neckline.
Charts inside the Gold section
clearly shows the change in trend channel for Gold (and for GLD).
A ballistic move to $1650 is now within easy reach
EU Commission Proposes Tough Reform on Derivatives and Short-Selling.
On September 15, the EU unveiled tough regulations to
control derivative trading and restrict short-selling. For the first
time, standardized contracts will be required to be cleared centrally.
OTC contracts—bilateral contracts between buyers and sellers—will have
to be reported to data banks or “trade repositories,” and this
information will be available to the regulators. Subject to approval
from the member states and the European parliament, it is expected that
these reforms will be put into force by the end of 2012.
Japan
buys Dollars - Yen falls. Colombia buys Dollars - Peso falls....or what we see is a race for
the cheapest Fiat paper money. Any Central bank
(Japan, Brazil, Peru - the yen) who
can afford it is trying to pop up the Dollar and make their currency
cheaper...moreJapan needs to take more steps to shield exporters
such as Sony Corp. and Honda Motor Co. against a strong
yen after intervening in currency markets for the first time since 2004,
said company officials, who welcomed the move.
This is a world upside down: not
a race and interventions for the strongest, but for the weakest paper
currency...give it some time and they ALL will be worth ZERO!....is
this the reason why the Euro has been rising against the Dollar?
Checking on our
Model
Portfolio it reminds us how difficult it is to do better than
GOLD/SILVER
even if one invests in Commodity
stocks (Oil and Gas) and Gold and Silver mines. Looking back to the
figures of the last 2 years, the Model portfolio advanced when expressed
in Euro's, shows a status quo when expressed in Dollars BUT the number
of GOLD OUNCES has decreased. In other words, the performance of our
portfolio would have been A LOT BETTER if we had invested the complete
amount in Gold.
Lies, lies and damn lies.
Interviewed this week by
The Gold Report's Brian Sylvester, International Forecaster editor Bob
Chapman remarks that all
U.S. government economic data is bogus
and that "it has been the official policy of the U.S. government and the
Federal Reserve and other central banks to suppress the price of gold
and silver."
Thursday September 16, 2010 - The bad news
is that once the hyperinflation starts, three eggs will cost $ 100
billion.
Whether
or not
$-Gold breaks today through $ 1270, the
days are close we shall see $ 1300, $ 1460 and much higher.
The technical indicators for Gold (and Silver) have
corrected somewhat and are out of the overbought zone. Hence the
technical correction could well be behind us.
I warned that such might happen
and leave short term traders with empty hands. Dips must be used to add
to your positions and it is increasingly dangerous to sell the tops. My
medium term objective of is $ 1450 is clearly confirmed by different
charts...more
Gold,
Silver, Gold and
Silver shares will stay in a Secular Bull trend independent whether we
have Deflation or Inflation.
The Bad money
drives out the Good money (people try to get rid of paper money and
bonds by buying Gold)
During the
period from 1929 to 1936, gold doubled and gold and silver shares rose
over 500% in a
deflationary period. Between 1978 and 1981, during
an
inflationary recession the average gold and silver
share appreciated 40 times the price of gold bullion.
Last call for Bond holders! Who would want to be in
Bonds
(bearish island reversal) while we witness
the greatest gold and silver bull market in history?
This certainly is a once in a lifetime opportunity that has been proven
for the past 11 years.
Corporate bonds ain't any better.
Last call for European Real Estate holders! Who wants to be in Real
Estate when Wealth taxes will be implemented all over the EU, when
interest rates will spike up under pressure of the hyperinflationary
depression!?
Central banks are populated by pompous morons who believe they can
control the world,
when the best thing they can do is
hope for the last Viagra shot to result in priapism.
Band of
Japan's intervention is a symbolic capitulation, and the beginning of
the end for the Keynesian system. Rejoice...Those who keep holding on
the Keynes and his erroneous principles will pay a high price for it.
Anecdotal evidence is always wrong and leads the Herd always in the
wrong direction.
A few years ago the market was
saying
Greece sovereign credit was basically as sound as
Germany’s, and that lending 125% of a home’s value to sub-prime
borrowers was perfectly sensible. Many analysts wish to see the West
walk the Japanese path. A visit to Tokyo however won’t show that the
“precarious proletariat” without job security or social security
entitlement – has
mushroomed to 34% of the labour force; that
suicide is now the leading cause of death among young men
aged 20-44; or that 56% of 15-34 year olds
need outside supplementsto their salaries to cover mere
living expenses (thanks to the artificially low interest rates). Neither
will it show that young men aren’t the only ones who need help to pay
for the basics: the Japanese government itself no longer manages to
cover its bare necessities with revenues and must borrow just to cover
debt service, social security and education. Well done JM Keynes, well
done Mister President....
Japan and the graph of Tax revenues don't even cover
expenditures for Social Security, education and debt service. Such is a
Real Life proof of
Jim's Formula. Figures for Western Europe and
the USA are without any doubt growing in the same direction. Japan could
be the first to teach the rest of the world what a developed country
bankruptcy via hyperinflation would look like.
Note the break away gap of Gold expressed in Yen
and the intervention of the Bank of Japan which confirms our bearish
flag!!! [note that we kept our bearish vision for the Yen]..click
here
Wednesday September 15, 2010 - The good
news is that once the hyperinflation starts, we will all be
Billionaires.
IMF fears 'social explosion' from world jobs crisis.
America and Europe face the worst jobs crisis since the
1930s and risk "an explosion of social unrest" unless they tread
carefully, the International Monetary Fund has warned. The labour market
is in dire straits. The Great Recession has left behind a waste land of
unemployment...more
Karl Marx and Communism doesn't work.
The USSR and
China learned this the hard way in 1989. Cuba and Fidel Castro are
learning it NOW. Will the EU have to fall apart before their political
leaders understand this?...more
Triple top breakout for $-Gold. The line in the
sand has been drawn. Assuming the breakout level is confirmed, we're
aiming for $ 1300 (see our technical objectives), $1450 and higher.
Gold is NOT a bubble and we are just living the baby steps of this
bull market.
Fresh breakdown of the Dollar!
Watch out as the
Dollar can break through its 200 day Moving Average.
Tuesday September 14, 2010
GLOBALISM
cannot survive without cheap energy...more
This is why Uranium and Uranium mines are an
excellent investment.
No Complex society survives expensive energy. History itself proofs
this statement is correct.
This is why the
Roman
Empire collapsed, why during the depression of 1830 Belgium
separated from The Netherlands (invention of the steam locomotive
running on
wood) we had WW I (transition from
steam made
with wood to steam made with
coal) and WW II (transition from the
steam engine to the liquid energy (oil) engine. 1989 the USSR and
China went bankrupt as a consequence of the first
Crude Oil crisis.
For the same reason the
EU
will not survive (for more than 5 years), a country like
Belgium
will break apart (Czechoslovakia
fell apart in 1992) and a powerful nation like the
USA could secede...more.
Fractional Reserve Banking it remains: Authorities have a panic fear
for a RUN on Banks.
The
BASEL
III regulations stipulates 'more reserve capital' must be held by
bankers. The Basel agreement gives banks 9 years to comply with a 7%
reserve level, or a big joke it is. Minimum
capital requirements are regulated by the prior
BASEL regulations.
Credit default swaps and derivatives however play an important role in
this game as junk bonds can become a triple A when connected to a credit
default insurance...more.
As always our charts in the
Financials' section are the ultimate
unbiased correct answer to yesterday's static.
A new high we had for $-Silver...but we don't like the long tail on
the top.
MondaySeptember13, 2010
If
our Founding Fathers were alive today, what would they think of America?
Surely they would be very proud that the United States
stretches from the Atlantic to the Pacific and has built some of the
most amazing cities that the world has ever seen. They would probably be
surprised that the country they founded went on to become the greatest
economic machine in the history of the world, and they would be
absolutely astounded by things like our interstate highway system and
the Internet.
However, there are quite a number of things that they
would be horrified about as well. The fact that over 40 million
Americans are dependent on the federal government for their daily food
would be deeply disturbing to our founders. Also, the fact that the U.S.
government has accumulated
the greatest mountain of debt in human
history would be incredibly distressing to George Washington, Thomas
Jefferson and the rest of the founders. But perhaps most of all, our
founders would be absolutely disgusted that
the land where Americans
could once be free to pursue life, liberty and the pursuit of happiness
has become so tightly regulated and controlled that Americans dare not
even squeak without the permission of the federal government....more
"Evet" In Turkey, Erdogan won (as expected) the referendum.
This will allow him to change the constitution as
proposed. Unfortunately I don't think this is positive for Turkey.
Generals and judges who see themselves as the last line of defense
against encroaching Islamism have frequently clashed with the prime
minister since his party came to power in 2002.
The measures undermine the separation of powers. The leader of
the main opposition Republic People’s Party,
Kemal Kilicdaroglu, was unable to vote in Istanbul after failing to
register a change of address!?...more
.
The international press, the EU and the US are hailing the result
of the referendum but nobody is getting to the point analyses and
mentions what exactly this change will exactly bring . Unfortunately the
Western MEDIA explains the result of the referendum in a DIFFERENT WAY!
They don't even get to understand what is happening. 2001 Turkey
managed to control a hyperinflationary depression.
Is this WHY Bankers have developed an investor's profile questionnaire?
Anybody who decides to invest with a bank [personal Real
Estate investments are an exception] must complete it!? This is
absolutely ridiculous and gives a false sense of security. American Real
Estate investors who bought in 2006 lost 60% of their savings in just 3
years time (or 20% y/y). European investors who invested in Bank shares
(Fortis) lost two arms and two legs in 2008 (some even lost their
lives as the share plunged from € 31 to € 1). Having said this,
Bank &
Insurance stocks are still extremely dangerous (most banks
are technically bankrupt) and so are Insurances and Re-insurances.
Silver has been
strong but needs to break though $ 20,50 AND positively confirm it.
I have no doubt that at some point in the not so distant
future this will happen. In the mean time it is largely the private
saver which is buying Silver and the Commercials which are selling. I
suspect that the creation of fiat money and the incorrect signals which
are sent to the market are part of the play ...check
our candle chart
Each time we write OVERBOUGHT one must prepare to BUY...and this is
what we see on the short term chart of
$-Gold.
Saturday September 11, 2010
The Herd is ALWAYS wrong! Not easy to explain WHY the Belgian Real
Estate bubble will burst and for the (potential) real estate owner
extremely hard to understand WHY the price of Belgian real estate can
and will fall by at least 60%.
The Belgian real
estate cycle is lagging on the American cycle by about 2 to 3 years. The
origin of any real estate bubble is
fractional reserve banking,
the creation of fiat money out of thin air and the misallocation of
these funds. Misallocation we have as soon as supply is
not regulated by an increase in demand but rather by a self feeding
speculation...click here for more
There is no doubt that the planned Asset taxation (2012) will break the
back of the Belgian Real Estate market in case another event didn't.
Having said this, why is it so hard to understand something is very
wrong when an apartment costing € 200,000 in Belgium sells for only €
20,000 in Florida?
64.5 Million Empty Flats In China?
64.5 million
flats in China reported zero energy consumption over a six month period,
meaning that no one is living in them.
Xie estimates the value of
real estate held for speculative purposes is around 15% of China's GDP.
Furthermore, if we assume only half of the 64.5 million flats are being
held by speculators, that would represent 20% of all urban housing in
China.
If this is not proof of a housing bubble in China I don't
know what is.
Friday September 10, 2010
Zimbabwe
Central bank to fire 85% of its staff.
Fractional
reserve banking results in the creation of Fiat Money and misallocation
of funds. Government officials (police, army,...) and Bank Employees are
the first to profit. Their number has to be reduced substantially after
the climax of the economic and financial crisis. Zimbabwe's economy,
which has been facing difficulties over the last years, is slowly
recovering after the formation of a unity government by President Mugabe
in February 2009. The unity government off-loaded the worthless Zimbabwe
dollar introducing multiple currencies such as the US dollar, Euro and
SA Rand into the economy. The unity government has been battling to
secure lines of credit from international banks but no major loans have
been secured. Beginning of 2009 ALL Debt was forgiven (Bonds became
worthless)
Elementary Mr. Holmes, it's the Zimbabwe effect:
in August and September 2007, even though the wheels were clearly
falling off the global economy, the S&P500 still managed to rally 15%!
We may or we may not not have a second down leg.
Best case
scenario markets will grow sideward until the Hyperinflation kicks
in...and I am 100% sure Hyperinflation we shall have.
When you walk into a bank, for
example, no one is going to sit down with you and say ‘hey I think you
should protect yourself from a depreciating currency,
let’s talk about
gold allocation and taking
some options to exchange your Fiat paper money for Real Assets which
will survive the Hyperinflationary depression.
No, instead you get
two limiting choices that are jammed down the throats of millions of
customers: the generic savings account, or the generic checking account,
the generic common investment fund, etc....The trouble is,
limiting choices are not designed to help you survive when the system
collapses.
Belgium sees a record of new Mortgages.
Each day
Financial institutions sell about 300 new loans at teaser rates of
3% to 4%. The funds are used to buy
extremely over valuated Real
Estate (remember that in Belgium we have a real estate
bubble which is lagging to the US bubble which busted in 2006)
by
people convinced the Belgian Real Estate prices will grow all the way to
Heaven... a painful disillusion it will be once the Belgium Real Estate
bust in a American Fashion. For
€ 200,000 it is very hard to buy a decent home in Belgium...but in
Florida (USA) it buys
almost 10 Condo's (apartments).
There is a new European credit collapse. Credit default swaps
have returned to the worst levels of the crisis for many of the PIIGS.
This morning the
Anglo Irish Bank is being divided up because it
was about to collapse. In other words, the scenario of us ending the
calm in the eye of the storm and moving to sovereign debt crisis is on
track in Europe...more
ThursdaySeptember 9, 2010
Thinking
of taking the kids to Disney in Orlando for XMas? Add
€ 15 per head to your traveling budget for the trip the USA for the
ESTA approval number. What is wrong with politicians who keep
doing the opposite of what should be done? Instead of charging € 15 per
head they should offer a bonus to any tourist deciding to spent his
Holidays and money in Florida (USA). Not hard to understand what a
relief it would be for the local economy and
Real
Estate Market if tourists started to buy a second home in
Florida. After all those who can afford such will also spent money on
other items...
Real Estate in Florida is a steal and the more people
know about it, the more will be sold.
As we move deeper into the Depression Social unrest will increase.French President Nicolas Sarkozy is feeling
the wrath of the people: hundreds of thousands protested against his
pension reform on Wednesday and trade unions brought public
life to a standstill. The showdown amounts to a test of Sarkozy's power.
Traffic jams in the streets, chaos on the ring motorways that circle
Paris, cancelled intercity and commuter trains, erratic connections on
the Metro: French trade union calls for mass protests against the
pension reforms planned by President Nicolas Sarkozy elicited a powerful
response on Tuesday. The Interior Ministry estimated that up to 450,000
demonstrators took part in 114 rallies by midday...What we see in France
will also happen in other countries and is a direct consequence of
Jim's formula.
France is not the only country on the sinking Titanic. Portugal,
Spain, Italy, Ireland, the UK, Belgium, the Netherlands, the US and
Greece are all on deck playing:
"Tout va très
bien Madame la Marquise".
Greek interest rate spreads are back at crisis levels of just before
the EMU bailout fund. After 1000 Bn USD bailout effort, we are back at
square 1.
There was a $ 1000 bn waste of Money and it
is only a matter of time before Greece defaults on its debt. Bond
holders are warned!
The subscribers' sections of the
Euro and
Dollar have been updated.
The fact that Russia and China will start to trade in each other's
currencies [the world's second-biggest energy consumer and the largest
energy supplier] will diminish the dollar's role in global trade.
China may start trading its currency
against the ruble within weeks, three bankers with knowledge of
the matter told Bloomberg, and sent out a document last week
allowing lenders to apply for ruble trading licenses, one of
them said. Russia's Micex Stock Exchange is making preparations
to trade the ruble against the Yuan in an initiative that has
the backing of the country's central bank, Ruben Aganbegyan, the
head of the bourse, told reporters at a conference in Moscow
today.
The subscribers' section of the
Yen has been
updated
with less static than fashion in the
financial media.
Crude Oil?
Bullish engulfing pattern and long
bullish tails...more
Not a lot of action in the sector of the
Oil
shares...but positive consolidations and some
buys.
Wednesday September
8, 2010
The
Keynesian cure never worked and will never work.
The
only thing it succeeds in, is in making bubbles:
the tech.com bubble,
the housing and credit bubble,
the crude oil and commodity
bubble and
the Government debt (Bond) & currency bubble.
We don't like what the charts show us in the subscriber's section of
World Stock markets.
Do we have a small Upflag (bullish) or a
larger bearish HS formation for the Standard and Poors 500
Index and the Dow Jones Industrials? What is the danger of
Evening
Stars (on the monthly) and
Bearish Engulfing patterns
on the (weekly) candle charts? If our charts are right, stock market
indexes will fall out of the present corrective upleg and slide down as
much as they crashed 2008/09. Better find out before it's too late.
Check
these important updates.
Yesterday we had an all time high of $-Gold...but we have seen
nothing yet!...check our
objectives for Gold now.We're ABSOLUTELY against trading Gold,
Silver and Gold and Silver mines. What happened yesterday clearly
confirms our vision is correct.
Greece Sees €4 Billion (2%) In Deposit Outflows In July.
Outflow troubles continue for the time bomb in Europe's
periphery,
Greece, whose second default is approaching.
The central bank has just reported that in July household and business
deposits declined from €216.5 billion to €212.3 billion: so much for the
ECB's presence inspiring confidence. Like Barosso explains so well, the
EU members will sink together.
Technically, there is room for a positive correction of the
Dollar Index to .85
Tuesday September 7, 2010
We
are adding
long term charts to the subscriber's section.
Each chart also shows the value of the index in Real
Barbaric money. Left is an example for the Japanese Nikkei.
Those who are still believing we have deflation and those who still
believe Bonds are safer than Stocks and Barbaric money MUST
check the charts in our
commodity section.
Silver did not loose because of the Better than expected US job
report but because it is OVERBOUGHT.
Elementary
Mister Holmes. Had it not been for the US Job report, the Financial
Media would have found another explanation.
ECB (European Central bank) buys € 173 million Bonds or € 30 million
more than 2 weeks ago.
Earlier this year the ECB
bought € 25 bn to avoid a crash on the European bond markets.
Quantitative Easing in its purest form!
Islamic gold Dinar
(see Tuesday August 12)
gains ground in Malaysia:
Malaysians are embracing
gold dinars which were introduced last month by the northern state of
Kelantan to promote usage of Islamic currency as an alternative to paper
money, an official said Saturday...more
Monday September 6, 2010 - Labour day
and Bank Holiday in North-America. As from now on it becomes extremely important to
follow our advised strategy carefully in order to avoid your financial
disaster. Remember "it" all can happen at internet speed (extremely
fast)!
By experience we know that this kind of Media publications-picture
forecasts exactly the opposite of what they advocate
(and
we have decennia of experience).
The article
claims that we are living the end of the Equity markets and the Bond
markets will be far better than stock markets. We
have on several occasions explained that the
Stock markets can
prosper in nominal terms only because of Quantitative Easing and that the
Bond markets are about to crash.
Today however it is too early
to time "when" the bull run will start.
We will advice our
subscribers in due time. At this time we have no serious indications
that a trend reversal is in the make...more
Equity investors should be able to outperform both cash and
government bonds IN NOMINAL TERMS over the next decade. The
developed economies are in trouble and they are unlikely to improve
anytime soon unemployment remains stubbornly high, deficits are
spiralling out of control and debt levels are unprecedented. At
first glance, things do look dire but we still believe that nominal
stock prices will (when time has come) continue to rise. Having said
this, we have no doubt that Gold and Silver will take off exponentially
before Stock markets become bullish again.
Harrisburg, Pennsylvania is one of the first cities to default on its
Bond Obligations. The capital city Pennsylvania is
broke and will be skipping this month's multi-million dollar bond
payment...more
The
Aussie
remains our favorite Fiat Paper money...more
To hold on to Dollars, British Pounds and Euro's is extremely
dangerous.
If
gold
closes clearly above $ XXXX basis December, it's then ready to soar.
For
Silver
the
second phase of the bull market is alive and well! . Above $ xxxx, we
could see silver really take off.
This will
happen as the physical market clashes with the paper market....and this
could well be happening NOW as the Silver Panic Intensifies ... NO
DELIVERIES!"
Copper is the barometer for
world growth. It's more than four-month high today is spying the global
economy is looking better, and it looks to be leading the stock market
higher. Copper is very strong above $3.25 and it's next resistance is
$3.63."
"For the under
exposed, I would be accumulating minimum up to one quarter to one third
of what you might think of as your intended portfolio proportion for
gold, gold miners and even silver miners."
note:
what we live today in Belgium is exactly what we forecasted weeks
ago....
Friday September 3, 2010 - a garbage bin
where no garbage is allowed!?
Regulation
to nowhere.
This is the game in Europe and Belgium.
There are garbage bins along the streets but it's forbidden to use
them!? There are so many traffic panels one doesn't know which one to
follow. City centers are a permanent construction field. One alteration
is barely finished or a new one starts!? Traffic police has a zero
tolerance (safety has become secondary to the taxation power of the
fines). In France the use of motorways costs an arm and a leg...
Capital
preservation is more important than capital gains. Overall
Gold has
resumed its uptrend...but
Sterling Gold is overbought and a small correction is plausible.
Don't forget to use the dips to BUY!
Interesting
candle chart for the Euro/Dollar...click
here
Looking at
the chart of Gold in
South African Rand and
Yen it is clear that there is only so much room
for a correction.
Important
is that we may have a false signal of the Yen expressed in Euro...more
GoldCorp is
one of the Gold stocks listed in the
Gold and Silver mines section.
Subscribers know we paid special attention to Goldcorp.
The co. has announced it acquired Andean Resources for
$3.6 billion. Those who understand this phase will make fortunes taking
positions in companies that will be acquired during this phase...more
Thursday September 2, 2010 - Gold and
Silver
overbought...we could get a small correction this coming month...an
ultimate opportunity for late comers.
Today
it's Hello
Mr.
Goldfinger and
Good-bye Bond. Not 007 James
Bond but
Mr. Bubble Bond.
Last Wednesday British 10-year gilts fell to a record low
of 2.84 per cent, while US T-bonds are at 2.5 per cent and German bunds
2.09 per cent. This autumn is the last hurrah for Mr. Bond. As equity
markets crash the rush into bonds will accelerate. The risk of holding
bonds rises as the bubble grows. The perceived safety of bonds becomes a
death trap. British bond holders are already in negative yield
post-inflation, and if the pound devalues as expected then this is
clearly not a place to be invested. Mr Bond lives to fight another day
but not for much longer.
Ascending
triple top breakout of the Swiss Franc.
Don't stay put...it's five to twelve! High time to move out of the
Dollar but also out of the Euro. Authorities expect (and prepare) for a
second financial crash.
Silver
Producers Enter Profitable Phase.
Such
has been visible for some time now. Silver shares (Hecla Mining) have
been doing extremely well.
In Florida
a Condo (Apartment) in an upmarket area costs less than a medium sized
car.
Remember to BUY when the media scream the end of the REAL ESTATE market
is near....more
Wednesday September 1, 2010
Those who
followed our advice and converted Euro's and Dollars into Australian
Dollars, Canadian Dollars and even in Swiss francs
have been acting correctly. They must not forget that Australian Dollars
and also Swiss francs are also FIAT PAPER MONEY.
Details and
updated advice inside the Subscriber's section: our charts leave
little room for misunderstanding. Important is to understand that
Capital transfer in and out of certain countries (EU) will become
regulated and that it is highly unsafe to keep i.e. Swiss francs in an
non-Swiss bank account.
The
Sterling or British Pound is the greatest example of the negative power
of Politicians and how they can destroy a country's currency.
Today there is not a lot left of what once was "The
British Empire"...and it ain't over yet!
The days
are numbered where you can move capital freely out of your country.
Currency exchange controls we had in the past and currency exchange
controls we shall have again in the near future!
Those who don't make preparations NOW before it's too late, will be
stuck in a similar way South Africans residents are stuck (capital
export is controlled. Restrictions apply and it is only possible under
certain conditions) [Personally, I experienced exchange controls in
Belgium, France and Spain AND the subsequent currency devaluations of
the Belgium franc, French franc, Peseta and Lira AFTER Authorities
formally affirmed there would be NO DEVALUATIONS].
The
1929-1933 Depression saw in early 1930 a 50% bounce of the Stock Markets
as investors thought the worst had passed .
There is
still this misguided belief Bonds and Government bonds are safe (we know
they are extremely dangerous) and many investors intend to keep them
till expiration when worst comes to worst.
They are
overlooking the fact that a hyperinflationary depression and a debt
moratorium will simply kill any residual value. [In Zimbabwe - 2009 ALL
DEBT was forgiven]
Gold is on
the cusp of a parabolic move underwritten by physical shortages.
Central/gold banks can simply NOT longer supply the amount to balance
supply and demand. Mine production continues to stagnate at best.