Fed indicates it will let inflation run above 2 percent goal for 'temporary period' https://t.co/1KnUdUsEtd
The coming hyperinflation will start slowly and few people will realize what is coming.
Thursday May 24, 2018 - A Lumber top always signals the top of a cycle: Lumber falls limit 3 days in a row!
A top in Lumber prices historically signals a top in Real Estate prices and also a top of the economic cycle.
Trump is boosting domestic energy: whether it is COAL, oil, natural gas or Oil...Why import while you have it at home!? International politics and Trump's new politics are creating HAVOC in the Oil & Energy sector. Energy Traders who had huge short positions (see backdated Goldonomic updates) have been taken by surprise by the fact that Donald Trump was elected and that he decided to withdraw from previous USA engagements which were signed by the Democrats (Obama): Paris-Global-Warming & Iran deals. The fact that Short positions had to be massively covered and in fact MORE Oil was traded, resulted in a Dollar-Squeeze.
- The Dollar squeeze ain't over yet. However the Dollar is entering a HEAVY resistance trading zone and hasn't yet broken the Maximum Activity or Mid Danger Zone (see US-Dollar section for charts) . Until such happens, there is no trend reversal. Also, most of the commercial OIL traders were mistaken on the price evolution of Crude Oil (see our earlier update cfr. historic high SHORT positions in Oil). As a consequence, these traders not only have to cover in their short positions, but on top they have to buy MORE DOLLARS. The uncertainty about the new elected Italian Government also adds oil to the fire...
- Oil cycles normally end their uptrend sometime end of June, beginning of July. This means that we also may have to wait until early summer before the US-Dollar ends the present correction and resumes its Bear Trend... more in the Subscriber's sections
- Gold miners (Majors) GDX-index is completing a Bullish Head and Shoulders pattern.
- Realtors and Real Estate stocks clearly show a BEARISH trend. This is confirming today's opening statement. (click to enlarge)...more in the Subscriber's sections
Copyright 2018, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic
Wednesday May 23, 2018 - Brent Breaks $80 And Gasoline Prices Spike
Updated Sections: Corporate Bonds, $-Gold, Silver, US-Dollar
History teaches that when taxes become immorally high, The People revolt and countries break up. This especially happens when the price of life-important commodities soar. It was the excessive taxation of BREAD which led to the Belgian Independence in 1830, it was the excessive price of SOAP which led to the French Revolution,...This time it will probably be the excessive price of ENERGY which will create havoc.
Because of the creation of fiat money out of thin air and fractional reserve banking we have a HUGE-GEOPOLITICAL misallocation of funds: away from Energy (Nuclear-Energy) and into uneconomic & unreliable Solar and Wind. While money is been Mal-invested in 'so-called- renewable sources of energy (in reality they are NOT and often pollute even more than nuclear-energy), the cost of nuclear-energy-power plants is rising exponentially and the main source of energy (Crude Oil) is depleted (we have Peak Oil). Note: 1 kWh solar results in 300 times more dangerous by-products than 1 kWh Nuke-energy.
No energy because No wind, no Sun, exploded battery!? Just call for the Akademik Lomonosov. Russia not only has huge reserves of Natural Gas and Crude Oil but also has an advanced nuclear-power technology. Recently they launched the 1st DRIVING nuclear-power-energy plant. Russia on Saturday (May 19) unveiled the world's first floating nuclear power station at a ceremony in the port of the far northern city of Murmansk where it will be loaded with nuclear fuel before heading to eastern Siberia. Built in Saint Petersburg, the Akademik Lomonosov arrived in Murmansk on Thursday where it was moored in the port and presented to the media on Saturday. Constructed by the state nuclear power firm Rosatom, the 144-by-30 meter ship holds two reactors with two 35 megawatt nuclear reactors that are similar to those used to power icebreaker ships. The barge can produce enough electricity to power a town of 200,000 residents, far more than the 5,000 live in Pevek, Russia's northernmost town...
Copyright 2018, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic
Tuesday May 22. 2018 - Ripley's believe it or not...but the Stupid Democratic Herd (Venezuelans) re-elected their executioner. with a 68% majority.
The Stupid Democratic Herd IS the MAJORITY. Therefore most of the people around you (friends, children, relatives,...) belong to this group. President Nicolas Maduro has been re-elected even as Venezuela faces now daily violent and in some cases deadly protests, hunger, lack of toilet paper, city water & electricity,...Maduro is re-elected even after killing Venezuela's major source of income by politically appointing incompetent government officials to run the country's major source of income – the oil industry. The Stupid Democratic Herd decided he should stay in power so he can finish the job Chavez started years ago and terminate a country which after WWII was one of the richest on planet Earth.
|Civilizations die because they commit Collective Suicide....|
Venezuela – just like the USSR, Cuba, Argentina – is the proof on the pudding that the Democratic Herd really is STUPID (and dangerous) and that this group will remain stupid until a country is completely bankrupt (like Cuba, like the USSR in 1989). Democracy (understand Communism-Fascism) has indeed triumphed in Venezuela...which country is next?
Make Italy GREAT Again and the EU small. Italy’s two anti-establishment parties agreed the basis for a governing accord on Thursday that would slash taxes, ramp up welfare spending and pose the biggest challenge to the European Union since Britain voted to leave the bloc two years ago.
Will Italy's boot kick the EU!? new government wants to slash taxes by billions, improve relations with Russia, lessen the control by the EU-autocrats. Few people realize that because of the Brexit, the overall cost of this expensive EU-exercise has to be paid by less members. In case another country leaves, the expenses will have to be carried by even less countries and the general-EU-taxation level will rise even more...more in the Subscriber's sections
- Gold And Silver Stocks are The Bargain Of The Century. There are times when there is still upside potential in markets which are making new highs. But a market which has been rising incessantly for almost seven years and which is grossly overvalued on any criteria is certainly not a low risk investment. Buy undervalued and unloved assets.
- The Turkish central bank has withdrawn all of its gold reserves from the U.S. due to the "tense political situation".
- Both oil and gasoline prices have continued to rally this week, with Brent breaking, albeit briefly, the psychologically important $80 mark and gasoline prices moving towards $3 as driving season approaches. More on Energy this coming week...more in the Subscriber's sections
- The Dow Jones and Transportation index are breaking up on the upside and may be signalling the beginning of the last DRAMATIC upleg of the Stock Markets. This leg is the biggest but also the most dangerous.
- Gold/Silver ratio back at 80x area To make it clear, today you need 80 ounces of Silver to buy 1 ounce of Gold. Four times happened over the quarter century, and prompted 2 things: 1) Silver outperformed Gold 2) We had a strong market for precious metals...more in the Subscriber's sections
Copyright 2018, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic
Monday May 21, 2018 - Gold & Silver manipulation explained...
Updated Sections: Literature ,
Once China has enough gold, the United States and China together could let the gold price go wherever it wants in an orderly way.
The other weakness in the manipulation schemes appears in the use of paper gold through leasing, hedge funds, and unallocated gold forwards. These techniques are powerful. Still, any manipulation requires some physical gold. It may not be a lot, perhaps less than one percent of all the paper transactions, yet some physical gold is needed. The physical gold is also rapidly disappearing as more countries are buying it up. That puts a limit on the amount of paper gold transactions that can be implemented. For example, the manipulation that took place in 2013, when the GLD warehouse disgorged five hundred tons of gold, could not be replicated because by 2014 there were only about eight hundred tons of gold left in GLD. If GLD were to disgorge another five hundred tons, there would not be enough gold left in GLD to make the ETF financially viable for the sponsor. There comes a time when the amount of gold left is so small that the management fees don’t cover the costs of insurance, storage, administration, and other expenses. The third point to consider is that there is an endgame that arrives when China has enough gold so that its gold-to-GDP ratio equals or exceeds that of the United States. It’s not there, yet once it is, there will be no political reason to buy more. China will have secured an equal voice at the table the next time a Bretton Woods–style conference is needed to restore confidence in the international monetary system....
Contrary to much speculation, China is not buying gold to launch a gold-backed currency, at least not in the short run, but to hedge its Treasury position. The Treasury has to accommodate that or else China will reduce its position in Treasuries... [link & text only available for subscribers]
- A Record price for LUMBER: this points towards a cycle High and towards a looming new Real Estate Crash in the USA . This time over, other countries (Canada, Belgium,..) will follow.
- Rising mortgage prices and a 7 year high for the 10 year treasury yield and mortgages will bombard the Real Estate Market LOWER.
- Dollar Collapse Coming: EU To Ditch The Us Dollar In Payments For Iranian Oil. The dollar’s collapse is nearing. The European Union is planning to switch its payments to the Euro for its oil purchases from Iran, eliminating United States dollar transactions. The less trade is invoiced in Dollars, the WEAKER the Dollar will be...even in a rigged market!
- If Italy was to leave the EU and the Euro the action would STRENGTHEN (and not weaken) the euro...more in the Subscriber's sections
- xxxx: 3 times is a charm (below 200 day MA) – a $20-$30 drop before price starts to rally again. (this time $1,270-$1,280)....One can be almost sure that we have seen the 2018 LOW for Gold.
- xxx xxx continues to advance and will until June-July 2018....more in the Subscriber's sections
Friday May 18, 2018 - $-Gold lower but Silver higher...try to explain this to your mother in law!
Updated Sections: .
Argentinians can no longer travel to Panama, they can no longer travel to Colombia...it becomes extremely expensive and hard to get out of HELL-Venezuela. Today, those who are lucky to buy a flight to Spain and get aboard of a flight to Madrid (also very difficult) have to start again from ZERO. SHIT happens if you have no PLAN B and if you have no SAVINGS which are out of political reach. It is "Amazing" is that ASSHOLE Maduro still has so many followers. He is the one who after Chavez died, broke the back of Venezuela....WHY are so many still loving him??? Why do so many refuse to understand that NOTHING comes for free and that the CONSUMER pays for every cent of TAX which is paid to the Authorities...???
| The Government of a country is the MIRROR of the Majority. If you see that your country sinks into the Abyss, intelligent people make sure they have a plan B...stupid people complain and do nothing !
The ECB and the EU really have a problem with Fresh-Italian-elected officials as they are thinking about launching an Italian currency which people would be able to use along with the Euro. Not hard to imagine what will happen if they are clever enough to make the NEW ITALIAN LIRA convertible and backed by Gold and/or Silver. If Italy was to leave the EU the Euro would be stronger. However, if Italy would launch a Gold/Silver convertible Lira, Mario and Junkers really have a Houston Problem as this could break the back of the Euro-Camel.
- $-Gold broke down the trading zone with an extremely low volume – hence the breakdown is fake and we have a bear trap...if we have a bear trap, $-Gold will bounce back within its trading zone and breakout to the upside.
- This is confirmed by the miners which remain within their trading zone – just like for Silver, no breakdown here.
- Conclusion: those betting on a stronger dollar are mistaken.
- $140 oil again...Crumbling Venezuelan output tightens oil market. As Venezuela’s oil production and exports continue to fall off a cliff, the case for higher oil prices is strong. A decline in Iranian oil exports, which will occur alongside plunging output from Venezuela, would create the “perfect cocktail” for oil to hit $100 per barrel this year or next....more in the Subscriber's sections
- Pictures tell more than a Thousand words: Gold lower, Silver bouncing up the support line, Gold & Silver Majors STRONG and not breaking down, the US- Dollar is - even with marginally higher interest rates - unable to break into new highs and revert its secular bear trend...more in the Subscriber's sections
Thursday May 17, 2018 - Argentinians who are stubborn and stayed in Argentina instead of leaving what is a sinking Titanic, may soon also not be able to buy toilet paper.
Updated Sections: ,
Argentina needs help of IMF. Shit happens if you don't clean up a sick situation....even so for a country which after WWII used to be one of the richest in the world. Let the Democrats (understand LEFT) manage a country and they will run it into bankruptcy in no time.
In a somber televised address to the country on Tuesday, Argentine President Mauricio Macri announced his government would open talks with the International Monetary Fund, reportedly to seek $30 billion of support for his country’s ailing economy. Macri said the move was necessary to “avoid crises like the ones we have had in our history”. The news came as a shock in Argentina, where many blame the IMF for exacerbating the catastrophic economic collapse of 2001. Especially the foolish Argentinians who repatriated tax money after Macri promised not to levy any tax penalties on these BLACK-funds AND promised those who brought back capital into Argentina a PREMIUM of the repatriated capital of 15%.
|NEVER, EVER trust your Government: they LIE, CHEAT, CHANGE the rules of the Game during and after the Game,...they do things not even the DEVIL does!|
Argentina is so deep in debt and in 1990 the country was unable to keep up with repayments and fell into a deep recession, with the currency peg making it hard to respond. Today – thanks to leftist Kirchner and his wife - the debt is still not paid off...and Argentina is entering the 2nd downleg of its depression.
- Australian Government Set to Ban Cash Transactions Over $10,000,...allegedly to stop money laundering practices (where else have we heard this no-sense aregument?). Where else have we heard the same stupid argument.?! They just want to get rid of all CASH & Banknotes so they can make a coming Bail-in easier. This makes one sick as they even make it a CRIME to pay Cash!?....Authorities will also introduce a hotline to give a channel of communication to people looking to report those engaging in unlawful practices in their vicinity (genuine communist-STASI-practices). The authorities reiterated that the measure would significantly limit the incidence of tax avoidance.
The end of "the system" will be due to the unbelievable amount of debt that is currently being created. This will create monster inflation that will destroy every currency. The only currency that cannot be destroyed is gold. When investors realize this, we’ll have the makings of the greatest bull market in gold ever seen.
Paper Manipulation Of The Gold Market Will Not Last. There is a giant secret stirring under today’s market. China, India, Russia and almost every central bank is buying physical gold. I’m guessing that within another year, physical gold will be swept off the market...more in the Subscriber's sections
Important Technicals: Markets are APATHIC!
- The xxxxxx failed to sustain above the 55 week moving average and posted an inverted hammer at the highs last week.
- This is my 1st time life experience of such an irrational & weird behavior of the Gold and Silver ratio.THEY managed to push $-Gold down the support line of its trading zone and below the 200 day Moving Average...Silver however didn't bulge at all: there is a DISCONNECT between the price of $-Gold and $-Silver. Both remains a SCREAMING BUY.
Wednesday May 16, 2018 - Financial markets scared as Hell for Higher Interest Rates & EXPENSIVE OIL IS GOOD FOR THE USA ???
We don't have a gasoline glut. We don't even have a comfort zone, +$100 crude oil certainly is possible. Crude markets have seen a wave of bullish news in the last couple of weeks, and as tensions in the Middle East continue to rise and Venezuela falls further into crisis, upward pressure on prices is only increasing. Gasoline prices are at their highest point in years, save for the brief spike during Hurricane Harvey last year. Retail prices will surpass $3 per gallon in many more places in the coming days.
In the coming months, Washington will reinstate all of the former sanctions on Iran, starting with the lighter ones, which are mainly meant to curtail Iranian oil exports. If a complete reimposition of sanctions become a reality the oil market could hit a brick wall. Looking at current fundamentals, demand and supply are already reaching a point where additional changes in supply could lead to supply shortages. The removal of a potential 1 million bpd of Iranian oil before the end of 2018 would surely lead in the short-to-midterm to higher prices. Asian and European clients already expect such a price spike before the end of 2018.
Still, even if Russia, UAE and Saudi Arabia would be able to counter Iran’s production and export decline, the market will remain under severe pressure. From 2019 onwards, the sanctions will not only hit export volumes but total Iranian production capacity.
The chances of a total war in Syria, with possible fallout in Lebanon, are now growing by the day. It will depend on the assessments of Tehran and the willingness of the IRGC backed proxies, especially Hezbollah, if a new war is in the offing. Last night’s military moves by Israel, Iran and others in Syria, show that tensions are nearing boiling point. For Tehran, the JCPOA debacle could become an end-game scenario. Either the next couple of months will be the first step towards the end of the Khomeini-Khamenei theocracy in Iran, due to internal unrest and an imploding Iranian economy, or a fight for survival, starting in Syria and Lebanon.
- xxxxxxx, Inc. ( xxxxx) awoke from a long slumber in 2017, surging more than 25%, and has posted impressive gains so far in 2018. Solid metrics and a bullish outlook should generate continued upside that lifts the stock above $50 and into the next major obstacle just below $54.
- Subprime Mortgages: Other people’s money is always more fun to play with recklessly than your own. As such there’s been a quiet escalation in number of private capital pools offering mortgage (and auto) financing to subprime quality borrowers. “Special Circumstance Lending” is one such lender in. Denver. It constantly runs ads on Denver radio. The proprietor of Special Circumstance Lending was an aggressive participant in the junk mortgage underwriting business and dumped more than his fair share of subprime crap into the Wall Street mortgage securitization scheme that led to “The Big Short.” Special Circumstance Lender doesn’t need to see your tax returns. It will give you a mortgage based on bank account statements. The big Wall Street banks appear to have retreated from risky mortgage lending. But have they? Though new regulations are intended to limit the amount risk the big banks take underwriting mortgages , the banks instead extend large lines of credit to private “non-bank” mortgage lenders, like Exeter Finance. The average credit score of Exeter underwritten paper is 570. If Exeter doesn’t get repaid, the big banks extending the funds to underwrite that garbage won’t get repaid...more in the Subscriber's sections
- 10 year treasury yield shows a short term breakout, US-Dollar is still bouncing down important Moving Averages and $-Gold hovering around an important Moving Average....Next Target and Support level for $-Gold is $1,280 ....like I mentioned 2 weeks ago. Worst case scenario is $ 1,220,- unless we have a FALSE BREAKDOWN and a BEAR TRAP...more in the Subscriber's sections
|$-Gold||US-Dollar||10 year Treasury yield||Dow Jones|
Tuesday May 15, 2018 - Real Purchasing power is gone with the wind (inflation)
Updated Sections: Commodities expressed in Gold, Inflation Index, Bonds general & USA
Real Estate prices have no way to go but DOWN...and down they will go until one buys a whole street for a couple of gold coins only.
Nearly 40 percent of the sales last month were either foreclosures or short sales, when the seller accepts less than they owe on the mortgage. One-third of all sales were purchased in cash - twice the rate from a year ago. In troubled housing markets such as Las Vegas and Miami, cash deals represent about half of sales. The median sales price fell 5.2 percent to $156,100, the lowest level since April 2002. Sales of new homes tumbled 16.9% in February from the prior month to a seasonally adjusted annual rate of 250,000, the lowest level since the series began in 1963. The median price for a new home sold in February fell 13.9% from the prior month to $202,100, the lowest since December 2003.
This time, the price of Real Estate is coming down because the purchasing power is gone. Demand is falling and the potential buyers have (even with low interest rates) a smaller REAL SPENDABLE INCOME. Authorities cooked inflation numbers over the last decennial. Because of 'the cooking' real income/wages did not go up in line to compensate for the higher REAL INFLATION. Because of the TINKERBELL effect, consumers continued to live in LALA-LAND and BORROWED the additional purchasing power. However this credit-line is now exhaused.
|Credit Cards are maxed out...||Real Inflation is a reality, not the cooked CPI-figures|
The end result is less spendable income, hence lower Real Estate prices and lower consumption or more recession. Some countries tried to overcome the problem by building and selling SMALLER homes. Whereas constructors used to build and sell homes of 300 m2 and 200 m2, nowadays a home of 130 m2 is called BIG while most homes are less than 100 m2 . [the median house price should be 3 years of salary]
|Seniors, Students and the Middle Class are Buried in Debt... Consumer Debt up 50% Since 2008.|
Shop till you drop is not just a silly phrase. For the majority of Americans, it has become an uneasy reality. Consumer debt is at a record high. In the first quarter of 2018, Americans owed $3.824 trillion, up 5.1 percent from the same time period last year. This includes all debts except mortgages. As our economy grows, so does our spiraling tower of debt. Debt is a worry for the future, but Americans are happily living in the present. For now.
- A NEW ERA FOR THE ALUMINUM INDUSTRY. There’s a new, revolutionary way to make aluminum. It eliminates all direct greenhouse gases. And it produces pure oxygen. The technology can create more aluminum in the same size smelting cell as the traditional process. And it can be installed in new facilities or retrofitted for existing ones. What I think will surprise many people is that a test facility has been running at xxxx xxxx test facility since 2009 so this is not some far-off pipe dream but it already has a proof of concept and is primed for commercialization. The first commercially oriented industrial project is expected to begin producing aluminum in 2024.
- Many investors also don't realize we have peak Gold.
- Considering strong U.S. oil output and the 1.8 million barrels-a-day of oil OPEC and non-OPEC producers have withheld from the markets, we thus forecast modest oil price increases as a result of the sanctions. What will sharply spike prices are increased prospects for a major Middle East War.
- Higher oil prices equals higher inflation. Already, the volatile equity markets have been on a down trend over concerns that higher inflation will push the Federal Reserve to aggressively increase interest rates. Thus, not only will equities be pushed lower as interest rates increase, retail sales will decrease as consumers, already holding over $13 trillion in debt, will be spending more on gas.
- xxxxxxxxxxx action against Venezuela could choke off exports. This is a total disaster” for Venezuela.. xxxxxxxxxxx moved to take control over several terminals from PDVSA in the Caribbean. PDVSA’s facilities on the island of Bonaire, Aruba and Curacao are crucial for about 16 percent of Venezuela’s oil exports.
- California mandates rooftop solar on all new houses. California became the first state to mandate all new home construction come equipped with solar panels beginning in 2020. The law could add $10,000 to the cost of buying a house, although it could cut the cost of energy and maintenance by $19,000 over 30 years. Solar stocks soared on the news while homebuilders declined...more in the Subscriber's sections
Monday May 14, 2018 - Energy & Oil = Black Gold & Hyperinflation is mathematically guaranteed.
Updated Sections: Bio-Pharma, Oil Shares, Natural Gas Shares, URANIUM Shares, Bank & Financials (note the dark red), Copper & Platinum shares,
The History of Iran & USA in 10 minutes and how this still affects our lives today. Bear in mind that what is happening in the Middle-East can result in a new Oil Crisis.
The Stock Markets will CRASH..only they can double, triple and soar higher before it happens. However, we don't know WHEN the CRASH will happen. What we do know for sure is that Stocks, Bonds and Real Estate will DRAMATICALLY crash when expressed in Real Money or Gold & Silver. All SPECULATORS, WISE NOSES, 21st Century Yuppies will all be taken by surprise. Extremely important is that those who have no Fysical Gold and Silver WILL NO LONGER BE ABLE TO BUY ANY. Note that in this context, it is extremely hazardous to your financial well-being to 'play' the markets....[enjoy the dumb blonde]
- Hyperinflation is mathematically guaranteed.
- BAIL-IN has been legally put in place all over the Western World and there is NO DOUBT in my mind that next time we have a 'financial problem' (and this can happen at any time), YOUR very SAVINGS you are holding with a Bank will be SEIZED. Everything you hold with a Bank, Broker, Safe deposit box with a bank,...is at risk.
- The energy sector is doing extremely well. See sections for Oil shares, Natural Gas Shares, Uranium shares for BUY signals.
- The Bank & Financial sector is doing extremely bad. Especially those banks (Deutsche Bank, ABN-AMRO, Soc. Generale, UBS, Credit Suisse,...) which are heavely involved in DERIVATIVES: ETF's, Options, Warrants, any bank manufactured financial product,....
- xxx (see xxxxxxxx) does it well and is still a BUY. See section for other shares...more in the Subscriber's sections
Friday May 11, 2018 Rates in Argentina have just gone to 40% to protect the currency
Updated Sections: Recession Proof shares (a lot of red) , Juniors Fundamentals ,
Rates in Argentina have just gone up to 40% to protect the currency. If interest rates were to go up that much in the USA and Europe, Japan, thw whole financial system would BLOWUP. Anyone who believes that rates in the US will remain at current low levels or that German and Japanese rates will remain negative has a massive shock coming.
- Argentina implements capital gain taxes for foreign investors. Foreign investors however are loosing more because of the weak PESO than they are winning on Argentinean Stocks.
- Brasil also seems to enter hyper-inflation.
- In Venezuela inflation quadruples to 18,000 percent.
|CPI is soaring||Stock Market is soaring||Peso is crashing|
Note: The charts above picture exactly the scenario to expect once things get out of hand...and interest rates start to spike...
Tinkerbell or The Grand Illusion, $2 Quadrillion Nightmare Debs & Phony Bank Stress Tests. The illusion doesn’t stop with stock markets. The global banking system is an even bigger illusion. The financial system was bankrupt in 2006 but governments and central banks around the world managed to patch it up by injecting $25 trillion, and by allowing banks to value all toxic assets at maturity instead of at market. 10 years later the financial system is in an even worse state than it was in 2006. Global debt has grown exponentially since then by 65%, from $140 trillion to $230 trillion. And this figure doesn’t include unfunded liabilities and derivatives of another $2 quadrillion or so. We are looking at total debt of over 30 times global GDP. With 5% of GDP it would take over 600 years to get rid of all debt. However you calculate it, the world is bankrupt and will never repay its debts. Nor will the debt be serviced at any rate of interest above zero.
Global banks have just had illusory stress tests. Countries like Portugal and Greece were naturally excluded as their banks are bankrupt. The criteria were set so that every bank would pass except for Monte dei Paschi in Italy. Since the whole world knew that this bank is bankrupt, it was impossible to cheat. Otherwise, in the illusory world, all banks were considered to be in decent health. The top performing banks were the Swedish ones, with Swedbank and Nordea shining. This is particularly fascinating since only a couple of weeks ago, the regulator in Sweden, in an internal report, had expressed particular concern that Nordea was severely under-capitalized to the extent of SEK 50-80 billion. This report was quickly hushed down and clearly ignored in the stress test.
The DANGER is as Banks are going 100% DIGITAL any bank deposit and all securities kept by banks can be FROZEN at any time and Authorities have the LEGAL RIGHT to seize any part of your property they deem necessary for their survival. And this INCLUDES the content of any SAFE DEPOSIT BOX you may have with your bank.
- Gold Mining Supply Is Collapsing. Gold mining supply IS collapsing, however, in this case it seems appropriate. Just in the past week, here, here and here how some of the largest mining companies in the world are seeing massive reductions in gold production...
- The US dollar, it looks particularly sick currently. The dollar will soon start a major secular downturn. The world’s reserve currency is greatly overvalued, and due to the state of the US economy discussed above with ever increasing debts and current account and budget deficits, the dollar will soon start the final leg to its intrinsic value of zero. It has been a 100-year race but it now looks clear that the dollar will be first to the bottom of the major currencies...more in the Subscriber's sections
- xxx xxxx (xxxxx) is a STRONG BUY at present level...more in the Subscriber's sections
Thursday May 10, 2018 - A banking system using DEBT as a basis is doomed to crash.
Updated Sections: Juniors ,
A banking system should NEVER use DEBT as a basis because once debt is going down, it affects the complete financial system....What most people, even Analyst don't seem to see and understand, it that at a certain point EACH ADDITIONAL created unit of DEBT has a NEGATIVE impact on the economy (not a positive one like most believe).
Anyone who believes that rates in the US will remain at current low levels or that German and Japanese rates will remain negative has a massive shock coming…
Investors and money managers have been under the illusion that it was their skill that has generated this enormous wealth. Few have understood that central bankers have created the largest global Ponzi scheme of all time, which has put a giant rocket under most assets and driven them to the stratosphere. And even fewer people understand that this rocket will fall down to earth without all the bubbles, which will evaporate in space...more in the Subscriber's sections
- A picture is often better than 1000 words....more in the Subscriber's sections
|Dollar Overbought (see $ - section for full size chart)||Euro Oversold (see € - section for full size chart)|
|Gold bouncing up Bottom & 200 day MA||Silver Triangle & bouncing up Bottom|
Wednesday May 9, 2018 - Gold/Silver Advance Following Iran Announcement.
Updated Sections: ,
Trump announces he will withdraw US from Iran nuclear deal and restore sanctions. President Donald Trump announced on Tuesday he will withdraw the United States from the Iran nuclear deal and restore far-reaching sanctions aimed at severing Iran from the global financial system."We will be instituting the highest level of economic sanction," Trump said. "Any nation that helps Iran in its quest for nuclear weapons could also be strongly sanctioned by the United States."
Because of what happening in the 1960's and 1970's and the years of rigging it becomes evident that Gold and Silver will probably not start to go up in an organized manner but we may see a BOUM...an overnight hike. When this happens, the odds are that it will be impossible to buy any Gold and/or Silver at these low prices...and maybe it won't be possible to buy any at all.
There is little doubt in my mind that we are about to see a sudden hike in Gold & Silver prices. Gold & Silver could easily double and triple overnight....when that happens the first and biggest danger will be Government who will try to tax the windfall profit away (to serve the community). Therefore it is extremely important to move your Gold (and if possible Silver) holdings out of reach of the politicians so you can convert these at your discretion without being taxed inappropriately.
Because of the rigging, Miners were hit hard. Miners however must be seen as an additional source of income and the Miner risk must be completely covered by physical Gold. Depending how long Gold & Silver are manipulated down to these marginal low production prices, we can see some Miners disappear. This loss however will be largely compensated by the coming explosion of the Gold & Silver price...more in the Subscriber's sections
- Energy stocks no longer out of favor. The energy portion of the S&P 500 significantly trailed the broader S&P 500 over the past year, despite the more than 50 percent gain in oil prices. However, energy stocks are finally back into fashion, with WTI now at a three-year high. Since April, the energy sector has outperformed the S&P 500, rising by 10 percent. Energy is now the second-best performing sector in 2018, after claiming the worst spot last year. Taken together, the energy sector within the S&P 500 are expected to report collective earnings gains of about 93 percent.China’s oil imports hit record high. China’s crude oil imports hit a record high in April at 9.64 mb/d, a jump of 14.7 percent year-on-year. The previous record high was 9.61 mb/d in January...more in the Subscriber's sections
- Wall Street analysts wrong on oil prices...and Goldonomic correct. The Wall Street Journal noted that analysts from more than a dozen major investment banks predicted that Brent crude would average $57 per barrel in the first quarter, when in reality Brent averaged $67 per barrel. We were so sure about the Oil sector that we published the advise on our home page... more in the Subscriber's sections
Tuesday May 8, 2018 - Manipulation always ends in tears.
Updated Sections: World Stock Market Indexes expressed in Gold (Real Money), Long Term World Stock Market Indexes, Gold Royalty co's , Gold & Silver Majors ,
“You can’t eat gold” is a very common remark...however you will always be able to buy FOOD with Gold! They don’t realize that people in Venezuela can’t eat the Bolivar either but if they owned gold, they would be able to buy whatever they needed. Gold is such a simple method to preserve wealth but it’s a secret that virtually nobody knows or understands.
A similar remark can be made about Argentina...country who is now AGAIN slipping into HYPERINFLATION. Only those who hold Gold are safe as Authorities in Argentina are now also TAXING stock market profits (to start with) by 15 percent. I expect to see similar actions the West. Authorities will see Stock Market profits as WINDFALL PROFITS and tax these accordingly...for the benefit of The People!
The Argentinean Peso has entered a crash mode...The 100-year Argentinean Government Bond which was issued last year and got fully subscribed in no time lost more than 20% in only one week's time! ...
|.........more in the Subscriber's sections|
Monday May 7, 2018 - Karl Marx was a psychopath and a Democrat.
Updated Sections: Literature , Agriculturals ,
Karl Marx was a psychopath and a Democrat. During his lifetime Democracy was still called Communism & Socialism. Over time the definitions of Communism, Socialism, Capitalism,...have been 'repainted' by Authorities and Mainstream Media. I advise those who don't believe my statement to READ Karl Marx's "Communist Manifesto"....(also see out Literature section) The booklet is about 60 pages and will tell you all you want to know "the Bourgeois" (maybe you are one?). Another interesting essay is : The distinction between Capitalism and Free Market enterprise by R.G.D. Lafferty. [see literature section]
I advise those who don't believe my statement to READ Karl Marx's"Communist Manifesto"....(also see out Literature section) The booklet is about 60 pages and will learn you all about "the Bourgeois". Another interesting essay is : The distinction between Capitalism and Free Market enterprise by R.G.D. Lafferty. [see literature section]
Altruism doesn't work. It never has and never will. Progress, evolution comes because and with "diversity" (in-equality). Make everybody equal and the Earth will come to standstill...Ayn Rand explains this in detail in her book: Atlas Shrugged. [see literature section]
Because of Communism and Socialism millions of people were killed and misery was brought all over the world: the USSR, China under Mao, Argentina,...and more recently Venezuela under Chavez & Maduro.
Modern Democrats (de facto Communists) fail to understand the role CAPITAL plays in society. They don't even know the definition of CAPITAL....Modern rulers embrace and love Democracy (Communism) because it makes it easier to control the crowd. History has NOT ONE EXAMPLE where Communism/Socialism brought progress...on the contrary, each time a country engaged into Socialism/Communism/Modern Democracy there was a serious Depression.
When a capitalist buys a machine, a warehouse, raw materials and supplies to start a business, all those things have been built or produced by previous laborers, so they can be thought of as accumulated labor. Thus, capital is accumulated labor. The actual workers of the business are the direct, living labor...
Nobody today knows what level gold will reach. Will it be $10,000, $100,000 or $100 trillion? That depends on the amount of money that will be printed in the next few years. The nominal value of gold at that point is irrelevant. It is only the purchasing power that counts. Therefore we would never sell gold just because it reaches a certain price. When the crisis peaks, so will the gold price. At that point it serves no point to sell the gold since the financial system will be on its knees. However there will be plenty of bargains around at that time.
The transfer of wealth in coming years will be of a magnitude that few realize today. Most billionaires will disappear and not understand what has happened. They will soon become aware that their wealth was only based on the central bank money printing that favored a few and impoverished the poor and the middle classes.
When bubbles burst, debts implode and so do asset values. The price of High Order Capital Goods crashes and consumer goods, foods, raw materials and many commodities (Low Order Consumption Goods) will hyperinflate. Prices of consumption goods are going up exponentially even with no demand. Examples are Weimar, Zimbabwe, Argentina, Venezuela...more in the Subscriber's sections
- $300 oil? Pierre Andurand, a prominent hedge fund manager, said that the lack of upstream investment from the oil industry could result in oil prices skyrocketing to $300 per barrel within a few years.
- The inclusion of production from the recently acquired Moab Khotsong would take xxxx Gold’s gold output in its 2018 financial year to 1.18 million ounces, an increase of 80,000 oz over the firm’s previous guidance.
- The strengthening of the rand against the dollar which has taken a large portion of South Africa’s precious metals industry into loss-making territory, claimed its first major scalp in Pan African Resources which today bowed to the inevitable by deciding to shut Evander 8 shaft, the Mpumalanga province mine’s underground operation.
- South Africa: xxxxx, xxxx-xxxx benefit most from Charter ruling. One of the companies to have benefited most from a recent High Court ruling on the principle of ‘once-empowerment, always-empowered’ is DRDGold followed by Sibanye-Stillwater and, in the pure-play platinum sector, Impala Platinum (Implats).
- xxxxx Petroleum (xxxx) will purchase Andeavor (ANDV) for more than $23 billion, which will transform xxxxxx into the largest refiner in the U.S., with a capacity of 3.1 million barrels per day.
- xxx (xx) profits soared on higher production and higher oil prices. The 25 percent gain in oil prices in the first quarter compared to a year earlier helped xxx report its best quarter in four years.
- xxxxx to add 500,000 bpd in 2019. Brazilian oil giant xxxxx said that it would add seven offshore platforms that will allow it to add 500,000 bpd of new supply by next year.
- Venezuela will probably lose another 200,000 bpd oil production by the end of the year. Venezuelan ministry sources told S&P Global Platts that oil production could fall by another 200,000 bpd by the end of the year, which would mean output will have halved over the course of two years...more in the Subscriber's sections
- Silver volatility is LOW and Bollinger band with is near 10 (low). Price is sideways and periods of low volatility lead to SHARP moves. Combined with the COT report we expect a robust upward breakout at some point. The question is when.
- Quietly food prices have broken out to an 8 1/2 month high. Corn is near $4 per bushel for the first time since June 2016. Wheat is at a 10 month high and cocoa is at the highest level since September 2016. Soybeans are holding above $10 a bushel. Declines in supplies and weather issues in Argentina are two of the factors...more in the Subscriber's sections
Friday May 4, 2018 - during the Weimar Revolution one could buy a whole street for a couple of gold coins only...
Updated Sections: Aussie-Gold & Aussie/$/€, Swiss-Gold & Swiss/$/€, can$-Gold & can$/$/€, ¥-Gold & ¥/$/€, £-Gold & £/€/$, Zar-Gold & R/$/€, Kr-Gold & Kr/$/€, Yuan-Gold & Yuan/$/€ , Rupee-Gold
Real Estate will soon be given away. Stop believing the FAIRY TALES sold by the Realtors and Real Estate Promoters. Real Estate is a High Order Capital Good and its price ALWAYS comes down during Inflationary Recessions. Remember that during the Weimar Revolution one could buy a whole street for a couple of gold coins only...The situation got out of hand and the Authorities had to ban foreigners from buying German Real Estate.
DEBT always takes its toll and "Over-indebted countries" and expensive Real Estate don't go together. Some countries were lucky and didn't experience what the United States, England, Spain,....experienced in 2006 and following years. Their time however has also come...Canada is only one of the countries which are in serious trouble. Bear in mind that any Real Estate crash directly impacts the BANKING world of the country it is happening in.
|I have no idea what will cause GOLD to breakup the present Trading/Accumulation zone but when it does, this Accumulation zone is strong enough to propel Gold expressed in major currencies to ALL TIME HIGHS. See respective sections for the Targets of Gold expressed in major currencies.
- Shit Happens to those who laugh at "Sell in May and Stay away". Financial Markets and financial analysis need SERIOUS research...not Mainstream talk! ...more in the Subscriber's sections
Important Technicals: Don't pretend Gold is weak...
Thursday May 3, 2018 - Are Gold & Silver oversold, is the US-Dollar overbought!?
Updated Sections: $-Gold, Silver, US-Dollar, €-Gold & €/$,
Sell in May and Stay away according to Peter Schiff.
- At this point the Dollar/Euro balance is critical : either the Dollar will breakup and Gold & Silver breakdown, either the US-Dollar will continue to weaken, the Euro rise and Gold & Silver (and Commodities) strengthen. Our Charts clearly show what the answer to this very important question is. See sections for Gold, Silver, the Dollar and the Euro for details....check both the PF & candle charts....more in the Subscriber's sections
Tuesday May 1st & Wednesday May 2, 2018 - Sell in May and Stay Away...!?
Updated Sections: ,
This is an EXCELLENT analysis of today's political system in the U.S.A. It answers many questions about the Clinton Foundation, the removal of high ranked officials (Drain The Swamp) and explains WHY the Deep State is after Donald Trump. A must see for every investor....
What is sold as Democracy is nothing more than genuine Socialism and Communism and the implications of this for all citizens and investors are important. Hopefully Donald Trump will be able to bring back this imbalance to "Normal". If not a Civil War we shall have.
Few are mentally able to UNDERSTAND the geopolitical and local political situation, even many politicians are not (and they don't care!). The Herd as a rule won't even understand it even when it's too late...like is the case in Venezuela.
Investors must understand that the Deep State also has an important impact on the financial markets. What you see and what you hear is most of the time totally programmed. Especially what the Mainstream Media bring us.
The coming hyperinflation will start slowly and few people will realise what is coming. But once the first real inflation signals are appearing, the process will speed up fast as the currency debasement accelerates.
- Gold is the ONLY real money...more in the Subscriber's sections
- What happens today (weaker Gold & Silver) is not relevant in the long run....maybe 'they' will seize May 1st and succeed to slam $-Gold down all the way to $1,280 !? (that is what I would do....) -.more in the Subscriber's sections