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NEWS AUGUST 2012 (public)
I will offer to any NEW subscriber 12 months free access to the site if the price of Gold is not higher than $ 1720 before end of 2012!
Monday September 3, 2012 - labor day - no update
Friday August 31, 2012 - Markets always climb a wall of worry.... and fall off a cliff of euphoria
Irish real estate has fallen by 57% since the top in 2007. A good example of what is about to happen in countries like France, Belgium and The Netherlands. Real Estate is a High Order Capital Good and its general price level ALWAYS fall during (hyper)inflationary depressions. This time WON'T be different and those who bury their head in the sand, will over a couple of years realize that this action has cost them 60% .
Hospitals in Greece are closing down because the EOYY (local medicare system) has run out of cash. Or this is the traditional scenario we see in all Socialist/Communist countries (USSR, Cuba,...) when the money of the others has been spent. Not only is the Medicare system but also the Pension fund and the life insurance systems. Is this the beginning of the end or an open door for more taxation and creation of more Fiat money out of thin air....and the end of the Welfare Society. The Herd is about to find out there is no such a thing as a free meal.
As the economic situation gets worse, the Governments will get increasingly GREEDY and the level of LEGAL THEFT will be cranked up. Hence it is FIVE past TWELVE to move your savings out of political reach. A first intelligent step is to put part of these into Gold/Silver. Anything else, Real Estate, Bank deposits, saving accounts, Treasuries are at the mercy of Banksters and Government. As the financial system is almost completely digitalized, it is a piece of cake to do whatever they decide to...in order to protect "your" country.
And there is more to come... Not only does Government gets greedy and real estate loses it's value, but worse is that Treasuries and every investment instrument depending on it (pension funds, re-insurances, insurances, banks saving accounts & deposits, bank manufactured products) become WORTHLESS. This happens during either a process of Deflation, Hyperinflation or (most of the time) during a Hyperinflationary Depression.
Will the DOW JONES break through the 13.330 level and make a new high in 2012? .Remember the White House is staffed by Goldman Sachs....and they know the tricks of the rope. Another million dollar question is whether the FOOTSIE will be able to ram through the 6000 level or bounce off the glass wall? Also interesting is the way the BEDOW (Belgian Dow Jones) behaves. Whatever is said, the law of communicating financial vessels is a strong one and dictates the general level of stock markets even in times of recession and depression.
Thursday August 30, 2012 -- "The highest form of ignorance is to reject something you don't know anything about" - Dr. Wayne W. Dyer
Updated sections: £/€/$ & PS-Gold , SA-Rand/$/€ & ZAR-Gold , Swedish Krona/$/€ & Krona-Gold , Renminbi Gold , Rupee Gold ,
The JSE has reached record highs despite forecasts of a fall amid the global crisis and deadly strikes at a Lonmin platinum mine. This must be seen in relation with yesterday's news/update about South-African Miners which are...The Johannesburg Stock exchange has for months now been listed by us as a BUY in the section of World Stock Exchange indexes...so why then are you still loosing your time, energy and money by focussing on European socialist stock markets!?
Whether Government cuts tax on Energy (Gas, Diesel) or increases Social Welfare payments is mainly a political choice. Important is to move towards a system with a minimum of costly, uneconomic interference by illiterate politicians who always do exact the opposite of what must be done. Important is to understand that in today's society ENERGY and COMMUNICATION have both become extremely important that that therefore their cost (taxation) should be rduced to a minimum. Just try to explain this to Governments which are bankrupt.....
Super-Mario (Goldman Sachs) urges Germans to support Euro rescue plan or read Super-Mario wants the Euro-zone to move even faster towards hyperinflation by creating more Fiat money. The Euro is the last bastion before the dollar will fall....
Special attention for the Candle chart of Pond Sterling Gold. Note how the Central Banks need to intervene with increasing amounts to try to keep the price of Gold down and how it each time is counter balanced by PHYSICAL buyers. This CLEARLY indicates we are living the END GAME of the Gold manipulators!..click here for the extremely revealing chart.
I keep predicting a Dow Jones of 30,000 and higher. Following statement draws a parallel with the 1980's and is also reality today. Remember markets always climb a Wall of Worry and fall off the cliff on extreme optimism (Bonds). This is not the first time the S&P500 Index has spent such a long time ranging. The period between 1965 and 1980 was quite similar. During this time the 1000 point level was referred to as a glass ceiling for the Dow Jones Industrials Average because it had encountered resistance near it on successive occasions. This 15-year cycle was characterised by a generational long process of P/E ratio contraction and rising dividend yields. In other words while prices went mostly sideways, earnings improved so that P/E ratios contracted. The market became fundamentally cheaper by simply going sideways. Over the last 12 years the S&P500's P/E has fallen from a June 2000 peak near 30 to its current 14.29; reflecting a similar process of valuation contraction. Important is that this ONLY applies to certain markets and that at this time EUROPEAN STOCK MARKETS in general will not be part of the party...thanks to the growing socialism. There ain't such a thing as a free meal and Europeans are about to learn this the hard way.
Republicans have unvealed BIG plans in Tampa. The question however is if the USA is still in a position to realize the growth they are talking off. Such will be pretty hard as they sold out the American Manufacturing machine to China and the American music stops once the Dollar crashes. There is only one way to bring back prosperity to the USA and this is to bring back the manufacturing system to America and import BRAINS and HIGHLY EDUCATED immigrants instead of those who are allowed into the country now...and get rid of stupid politicians.
Wednesday august 29, 2012 - we have PEAK OIL and the price of gas will go up a lot higher !
Peak oil, (electricity) energy problems, infra-structure problems (roads, railways,) ...all the consequence of Fractional Reserve Banking and the creation of Fiat Money out of thin air which sends incorrect signals to the entrepreneurs who as a consequence invest in the wrong sectors like.... Real Estate.
Peak Oil or plenty of oil as the Talking heads pretend in their Propaganda?! Brent crude jumped to $115 a barrel last week. Petrol costs in Germany and across much of Europe are now at record levels in local currencies. Diesel is above the political pain threshold of $4 a gallon in the US, hence reports circulating last week that the International Energy Agency (IEA) is preparing to release strategic reserves. Barclays Capital expects a “monster” effect this quarter as the crude market tightens by 2.4m barrels a day (bpd), with little extra supply in sight. Goldman Sachs said the industry is chronically incapable of meeting global needs. “It is only a matter of time before inventories and OPEC spare capacity become effectively exhausted, requiring higher oil prices to restrain demand,” said its oil guru David Greely...more It makes no sense to re-invent the wheel each day/week/month like most media do. Peak Oil we had in 2004 and Peak Oil we have today. (As long as we have peak oil, the information published in the Oil section will remain the same. We don't want to overwhelm the Goldonomic reader with a flood of information)
Energy and Communication are the life line of Society and economy and a shortage of energy always results in a major DEPRESSION and always results in a MAJOR WAR.
Mining in Africa is not really understood by most financial advisors. Important it to know mining is the life line of Africa. As for any country on the world, without mining and exports there are no hard currencies (Euro's and Dollars) to pay for the imports. Exports by certain countries are often the subject of political decisions and restrcitions (blood diamonds is a good example). Until WWII Africa was a colony and ruled by European states. Angola and Mozambique by Portugal, Congo-Brazza by the French, Congo by the Belgians, Namibia by the Germans, Rhodesia by the English...And one still feels the impact the Colonials had on the locals which indirectly still try to control these ex-colonies....more
Tuesday August 28, 2012 - IT'S A WALL STREET GOVERNMENT!
Updated sections : Coal ,
About the Gramm-Leach-Bliley Act or how the Banksters got unlimited power and are preparing for an Apocalypse. You have to be blind not to see it and if you don't do anything about it, by reorganizing your savings, you're not worth having it and you will lose them anyhow. This is about Iceland and the USA but EXACTLY the same occurred in Europe. A story about defrauding customers, money laundering and cooking the books by the too big to fail...where are YOUR savings!? Do you understand DERIVATIVES and how dangerous they are? Do you understand Credit Default Swaps and how dangerous they are?
The USA and the US Dollar will be the place where it eventually ends as an Apocalypse. Either we shall have an ACCIDENT and the system will collapse overnight or the Authorities/Banksters will run the system into Hyperinflation during which it also will collapse. Time wise, there is no doubt in less than 5 years time the world will find out this is a GIANT PONZI scheme!!
Monday August 27, 2012 - Yes, you are out of your mind if you continue to buy/hold real estate !
Forced mortgage or this is what the stubborn Real Estate investors should brace for - an expropriation of a special kind is what we will probably will see once the authorities have no other recourse to keep the system going. It will be a confiscation of all (especially fully paid) Real Estate property of the citizen. A modern version of what Napoleon did after the Great Crisis which was the result of the debauche of Louis XIV (le roi soleil - après moi le déluge) and Louis XVI & Marie-Antoinette when he seized the Real Estate property of the church and used it as a guarantee to issue the ASSIGNATS.
The Dollar has stopped existing since 1971. It was in 1971 that Nixon closed the Gold window. Ever since that day, all world currencies have become de facto WORTHLESS FIAT paper based on a dollar mirage. The day that the USA fails to issue more Treasuries or the day they fail to sell these and/or the day the herd understands the USA is de factor paying for all its imports with worthless digital money (no it's not even paper money the use)., it's GAME OVER. The logic is that the US Dollar will probably be the last standing fiat currency...but the logic also is that is is - just like the Euro - doomed to disappear. Such will inevitably occur once we have hyperinflation....and hyperinflation has also become inevitable!...IT'S ONLY A MATTER OF TIME! [note: because of the existance of DIGITAL Money, the game can last longer than in the past where we had predominantly Paper money/bank notes but at the same time, the Hyperinflation will be more dramatic than it was at any time in history).
Would you allow a bus driver who crashed twice his bus full of kids to ride again? The irony of politics is that although Goldman Sachs was at the origin of the Greek debacle, the same people are now running the ECB, EURO and Washington...how stupid the Herd is!
We all start to be more or less aware that there is a problem with the economy and with the Pension Funds (which are bankrupt). The state of the LIFE INSURANCES however has been touched by few analyst. Be advised these also are BANKRUPT....gone...CONSUMED!
Following video clip is in German. Andreas Popp is one of the few who understands the mechanisms and knows soon ot will be GAME OVER. (thks to AG). The VIDEO CLIP IS A MUST FOR ANYBODY WHO UNDERSTANDS SOME GERMAN.
Friday August 24, 2012 - He who has nothing, wants everybody to share it all!
Updated sections : Gold and Silver juniors ,
Only a hurricane can silent Goldonomic during a couple of days....
The breakout of the Gold and Silver sector is confirmed and hopefully.... we will see some .....Short term the sector is OVERBOUGHT... Surprised to see this? I am not….and YES, we do have fireworks in the gold and silver sector! I told you there would be blood on the ceiling when the SHORTERS had to cover because GOLD and Silver would break out of the Triangle on the UPSIDE and not come down.
No, this is ABSOLUTELY NOT THE TIME to buy Real Estate, certainly not in Spain !
Thursday august 23, 2012 - So much for all the financial movie starts who predicted lower gold - I predict Gold will at least double in price!
Updated sections: $-Gold, Silver (YES...it's a.... and a.....!), Gold and Silver Majors (SUPER ..... of the year 2012)
So much for all the financial movie stars who predicted lower Gold/Silver: Jim Rogers is only one of them (yes, he has red cheeks). I forgot the name of the others...but there is no danger you will hear them talk in the next couple of weeks. $-Gold has broken out on the upside of the Bearish Triangle. As an experienced professional technical analyst, I know this happens....Gold and Silver will continue to geyser and soon we'll see $ 3000 Gold. At that point all those in denial will jump on the wagon and push the price of Gold even higher. This is how the game works. To understand and to know when and why price will move into the opposite direction the technicals indicate distincts the amateurs from the real specialists you can TRUST!
The Euro was oversold and now slowly but surely becomes overbought again. Don't let them put you asleep by the false promises and smooth talk. The Euro is a Frankenstein and any death cat bounce must be used to get out of this monster. As a matter of fact, the European leaders are making fools of themselves by giving countries like Greece a last chance. But what else can one expect from an intelligent psychopath... Debt crisis: Athens in 'last chance' to meet its bail-out terms says Jean Claude Juncker: Greece has “one last chance” to meet its bail-out conditions, according to Juncker in comments that crushed hopes for an imminent change of strategy for Athens and the eurozone.
See my Gold objectives and make sure you have some NOW !...more You should have at least ...... of your savings invested into PHYSICAL GOLD now...!
What if the ratio between the price of Gold and the cost of Crude Oil (gasoline) remains constant!? Do you really think the price of gas won't get more expensive than $ 10 per gallon or € 3 per liter?...Will you sell your car when it does? Let's assume that oil and gold keep apace in their ascents. That would keep their valuation ratio at its current level, which is roughly 16 barrels of oil to one ounce of gold (see price of crude oil expressed in Gold).
- Let's assume Gold achieves the same gain as in the 1970s run, rising 2,330% from its 2001 low and reaching $6,227 per oz. If so Oil would sell for $390 per barrel and gas/diesel for € 6.90 per liter in Europe and $ 5.60 per gallon in the USA.
- Let's assume Gold reaches the 1980 high in inflation-adjusted dollars or $15,000 per oz. than Oil would sell for $ 950 per barrel and gas/diesel for € 170 per liter in Europe and $ 140 per gallon in the US.
- A Gold price of $ 40,000 per oz. would result in $ 2,400 per barrel and gas/diesel for € 50 per liter in Europe and $ 35 per gallon in the US.
QE to infinity we shall see. The Federal Reserve sent its strongest signal yet that it is preparing new steps to bolster the economic recovery, saying measures would be needed fairly soon unless growth substantially and convincingly picks up. Minutes released Wednesday from the Fed's July 31-Aug. 1 policy meeting suggested that a new round of bond buying, known as quantitative easing, was high on its list of options.
Wednesday august 22, 2012 - The only safe Apple is a golden apple !
Updated sections: World stock market indexes (the potential breakout into new highs for the Dow Jones is no surprise) , Recession proof shares , Oil shares ,
The market cap of Apple is now greater than three times that of all of the world’s publicly traded gold and silver equities. This will be seen as preposterous in the fullness of time.
“Irrespective of the back and forth in the gold market, in a covert fashion, the Western central banks have been acting much like they did back during the London Gold Pool in the 60s ... the Western central banks can only get away with this for so long, before they are completely overrun.” John Embry
|So the Western central banks can only get away with this for so long, before they are completely overrun. All this continuous intervention and market manipulation in the gold market is doing is setting up a massive move.|
Thirty-eight times silver was recently beaten back on a minute by minute basis at the $28 level. Every time it went though $28 it was jammed back down. So for silver to breakout today and make a run towards $29 is significant, and very promising going forward.
The only arrow the central planners have left to fire is Quantitative Easing to infinity. They haven’t fired it yet, they’ve just sort of danced around it, but they could still fire that bazooka. It won’t solve anything and will lead to major inflation if not hyperinflation, but it will keep things moving forward.
Will this be the black Swan? Netanyahu ‘determined to attack Iran’ before US elections, claims Israel’s Channel 10 - see TWITTER on bottom Home page.
Stocks are REAL ASSETS! Don't forget to check the Long Term chart of the Dow Jones and see for yourself how fast stocks recovered after the GREAT CRASH.
Gasoline prices per country (no comment)...click here
Tuesday august 21, 2012 - When "IT" happens and the trap closes in on you, never say you haveN'T been warned in time! - as a matter of fact, the trap may already be closed for many, only, they haven't realized it yet!
Updated sections : Krona/$/€ & Krona Gold/HUI , $-Gold , Silver
Today, societal control is maintained through the media. In the media, the public reads LIES, half-lies and half-truths believing them to be fact. But to find the truth, especially where power's concerned, it's necessary to look hand, deep and elsewhere...like on Internet. [if you become so good, that it becomes impossible to negate you, the Wikileaks scenario is activated...and it keeps working]
But...Everybody with some common sense understands the banking/financial system is one inter-connected system, knows that the Quadrillions of derivatives will either kill the system overnight or will result in hyperinflation. We all know that during this process the authorities will, with the help of their Vazals try to plunder you as much as possible...so they can survive. What is happening NOW has been prepared for years. DIGITALIZATION of securities is one of the last steps towards FULL COMMUNISM/FASCISM and arbitrary, legal theft of your savings. They have (and will) use any possible excuse (Money Laundering and Terrorist Financing Act is only one example) to do so. If you for some reason decide to stay inside the system, you know what will happen. Getting out requests common sense and also guts. But by doing so you know that at least some of your savings will survive....Remember the thief is already there and no prisoners are taken. So much for trusting Athorities, Banksters and Fiat paper money. Welcome to Communism in the EU!
Rothschild's bearish bet on the Euro is the hit of the Weekend in The Telegraph and the news quickly hit the US-Press. It is known that like the USA destroyed the old Ruble, invaded Iraq because Saddam's plan was to deal Oil for Euro's and terminated Khadafi (Libya) because he was planning of issuing a Gold-Dinar which is strongly opposed to the Euro because they fear any Fiat Paper currency which could take over the role of the Fiat Dollar Reserve Currency. What a luxury to be able to print all the money requested to pay for your imports: made in China goods, crude oil, central and South-American veggies,...Whatever happens to the currencies (which are ALL FIAT PAPER MONEY) is of secundary importance as none is worth the ink on the paper or the digitals in the computer systems once you understand the historic and modern role of GOLD...more [as a matter of fact each investor buying Gold/Silver is not only betting on a bearish Euro, but as well on a bearish Dollar]
Monday august 20, 2012 - Freedom is a joke... because it's the law!
Fracking...is a method of last resort and a desperation technique...as we run out of oil it is presented as a GREEN alternative for energy!?...maybe Uranium and nuclear energy is safer and better after all.
Certain chemicals are extremely hazardous to the investment exercise and often they make it harder to make the correct decision. Some people get so angry when you challenge their beliefs because you are literally taking away the source of their good feeling, like drugs from a junkie or a boyfriend from a teenage girl.
"Any explanation is better than none." And the simpler, it seems, in the investment game, the better. "The markets went up because oil went down," we are told. Then the next day the opposite relationship occurs, and there is another reason for the movement of the markets. But we all intuitively know that things are far more complicated than that. As Nietzsche noted, dealing with the unknown can be disturbing, so we look for the simple explanation.
"Ah," we tell ourselves, "I know why that happened." With an explanation firmly in mind, we now feel we know something. And the behavioral psychologists note that this state actually releases chemicals in our brain that make us feel good. We literally become addicted to the simple explanation. The fact that what we "know" (the explanation for the unknowable) is irrelevant or even wrong is not important for the chemical release. And thus we look eagerly for reasons.
If you're still in the financial , you're either stupid or on drugs (chemicals)...PHYSICAL GOLD ain't no luxury and it will save you on condition you store it correctly. Those who will be most affected are the investors sticking to BANK DEPOSITS, SAVING ACCOUNTS, MONEY MARKET FUNDS, BANK SHARES....just to name some extremely dangerous instruments.
Freedom!? A joke...because "It's the Law!"
- A Moscow judge handed down prison sentences of two years on Friday to three women from the punk band Pussy Riot, who staged a protest against Vladimir V. Putin in an Orthodox cathedral last February.
- CNN writes Julian Assange's run and hide results in a negative picture for Wiki-leaks .Julian Assange was back in the news on Thursday because, after nearly two months of holding out in Ecuador's London embassy to avoid being extradited to Sweden, where he is wanted for questioning, he has been granted "political asylum" by the Ecuadorean government. The decision has set off a diplomatic stand-off, with the UK government threatening to revoke the embassy's diplomatic status and Ecuador responding with anger....
- South-Africa (Pretoria and not Johannesburg). Ten people, including two policemen, have died in clashes at Lonmin Plc's Marikana operations (Platinum mine) in South Africa. Most of the company's mines are running on essential services as employees stay away from work fearing violence and as about 3,000 rock-drill operators started an illegal strike on Aug. 10. Note the extremely large short position in the Platinum commodity which could result in a severe whiplash. These aspects have potential to combine to fuel a sharp short-covering rally. The Platinum chart shows a major reverse.
Monetization of Debt and Quantitative Easing to infinity in Spain. (that is on condition the financial system doesn't implode before) For those who still haven't understood it...the same Spanish authorities who only weeks ago openly stated they did NOT need any financial help now DEMAND that the ECB buys unlimited amounts of Spanish Treasuries. This is a clear step towards hyperinflation.
If a Republican doesn't like guns, he doesn't buy one.
If a Republican is a vegetarian, he doesn't eat meat.
If a Republican is homosexual, he quietly leads his life.
If a Republican is down-and-out, he thinks about how to better his situation.
If a Republican doesn't like a talk show host, he switches channels.
If a Republican is a non-believer, he doesn't go to church.
If a Republican decides he needs health care, he goes about shopping for an insurance,
Friday August 17, 2012
Barrick Gold, the world's biggest gold producer, announced today that they are in talks to sell the 74 percent stake in its African mining business to China National Gold Group Corporation, a state-owned enterprise in China, via a statement on its website. The deal is a great example of China's desire to push further into Africa to invest in commodities in order to support its rapidly expanding economy...more
ENDEAVOUR Mining's $C389 million ($A370 million) takeover of Avion Gold, announced today, is not the last according to the gold miner's chief. Mark Connelly, chief operating officer and executive director of Endeavour, said today the company was actively looking at two other Canadian takeover targets based in the west African region. The all scrip deal, unveiled earlier today, would help get the WA based miner to its goal of being a 450,000 ounce to 500,000 ounce producer by June next year, he said. Endeavour has offered Avion 0.365 of its shares for each Avion share, valuing the takeover at $C389 million ($A370 million)...more
Finland is preparing for the break-up of the eurozone, the country’s foreign minister warned today. The Nordic state is battening down the hatches for a full-blown currency crisis as tensions in the eurozone mount and has said it will not tolerate further bail-out creep or fiscal union by stealth. “We have to face openly the possibility of a euro-break up,” said Erkki Tuomioja, the country’s veteran foreign minister and a member of the Social Democratic Party, one of six that make up the country’s coalition government. “It is not something that anybody — even the True Finns [eurosceptic party] — are advocating in Finland, let alone the government. But we have to be prepared,” he told The Daily Telegraph. “Our officials, like everybody else and like every general staff, have some sort of operational plan for any eventuality.”..more
Quantitative Easing to infinity. The ECB and/or FED cannot possibly solve the problem and the crisis we are in. Best case scenario they can only postpone the END GAME. Any exponential, debt-based monetary system is, at its very core, a Ponzi scheme. It simply has to keep expanding so that there’s enough money and credit manufactured today to meet yesterday's principal and interest loads. Without endless growth, sooner or later the debt pile collapses, and truly extraordinary losses are taken by somebody. If our entire money system is itself a Ponzi scheme, then it follows that much of what will be based on that monetary superstructure will, almost by definition, share that characteristic. We live in a system of Officially supported FRAUD. Bankers and Politicians will do all they can to keep the dream going...but more and more people understand the Emperor has no clothes.
Capital Controls will come overnight when nobody expects it. From that day on, those who are keeping their saving in reach of the local politicians will be trapped and subject to the will of Government. Capital controls we had in Europe during the 60's, 70's and 80's. Capital controls we still have in South Africa and capital controls we shall have again soon. By now, we all know Politicians and Bankers take no prisoners. Once we have capital controls export of capital will become very hard, if possible at all. The digitalization of Currencies and Securities will in fact make it extremely easy to apply. Note that in a system of Capital Controls, capital Import remains always possible...
Thursday august 16, 2012 - We must not let democracy interfere with our great Grand Project - fascism!
Nigel Farage nailed it again...stupid European Authorities. No wonder Nigel is labelled as dangerous. Robin Hood also was. This mostly happens to people telling the truth about politicians. [how many know the story of Robin Hood and yet don't understand it!) Today we have a SIMILAR situtation!
After five (soon to be six) nations already bailed out, that so few people inside these institutions are even prepared to contemplate that there might be something wrong with the Euro project" ...even after disaster, they continue to believe!?
As expected the War in Syria is bleeding over into Lebanon...WW III in the make!?..will a global war in the Middle-East become the Black Swan ensuring Gold breaks out again? Four Arab states have urged their citizens to leave Lebanon amid signs that the conflict in Syria is spilling over into its western neighbour. Saudi Arabia, the United Arab Emirates (UAE), Qatar and Kuwait urged immediate action after a string of kidnappings of Sunni Muslims by a powerful Shia clan...more
Wednesday august 15, 2012 - gold enforces honesty because you have to earn it before you can spend it!
If we have a chart section of major commodities expressed in Gold, there is a reason for it. Although the price of Food commodities is soaring when expressed in Fiat Money, there is a completely different picture when expressed in Gold or Real Money, hence, it is incorrect to blame the drought for the higher price of food stocks and Politicians and Media are incorrectly blaming Speculators. (part from some spikes, the price of most commodities expressed in REAL MONEY sits in a bearish trend).
In order to bring down nominal food prices, the United States must perhaps relax its ethanol policy in response to the crisis - difficult only months before a presidential election that may be won or lost in Midwest farm states - or urging Russia not to impose an export ban, as it did two years ago. [The United States uses 40 percent of its corn crop to produce ethanol, drawing criticism for using food for fuel when hunger is widespread in some poorer countries.]
Don't forget to read this extremely interesting DOWN to EARTH article about "The Gold price for the next 16 years".
Tuesday August 14, 2012 - All of a sudden politicians have forgotten about their bio-fuel nonsense...and blame speculation!?
Updates sections: Inflation index , Treasuries USA & Germany (dangerously topping) , Treasuries in the EU, Corporate bonds ,
G20 ready to act on soaring food prices!? Did they by accident forget about the BIO-FUEL NONSENSE?....What are the plans? Make it rain, ask the people to pray, or will they as always revert to PRICE CONTROLS so they can make the situation worse... or will they, as usual, blame it all on those mean, money and profit-only seeking SPECULATORS and forget about the important economic role the Futures market play? If this doesn't do, maybe they should try to find Al Gore and blame GLOBAL WARMING!
It is important to understand that the rising food prices are the result of Several FACTORS: Bio Fuel nonsense, growing demand in the East and, last but not least, the drought and also the creation of Fiat Money out of thin air. [a quick glance at our charts in the commodity sections shows prices started to rise in 2004]. Click here to see the updated section of Inflation index.
Gold preparing to take out the $XXXX resistance. It took one year for Gold, silver and the Gold and Silver sector to xxxx and there are signs that a fresh run could start any day now. In perspective, the 12 months of consolidation will end up having Mickey Mouse dimensions. The wise noses who thought that some trading could bring an additional slice of profit, could well be in for a serious surprise. Important is to know what the Bearish triangles will bring us.
I admit that I have been wrong on Treasuries/Bonds for months now. At least if you take into account the USA, the UK, and forget about Greece, Spain, Italy and Portugal....Corporate bonds have broken a new high..but looking at the chart alone gives me the vertigo...
Monday august 13, 2012 - will luxury again become a deadly sin?
Greece has played a major role in history and was the cradle of democracy and republics. Greece may well be the END of democracy like we know it today...interesting historic video clip also about Gold and Silver and how centuries ago it already was seen as real money.
Yes..it is absolutely too early to buy Real Estate in Spain....Remember that any investor who bought Real Estate in Japan anno 1989 lost 80% of his investment in a couple of years time and the Japanese Real Estate market has still not recovered. Spain will do at least as good as Japan if not better.
Vodoo or the trick with the Hat: National European banks (Greece, Spain, Italy, Portugal) are bankrupt but the new invented ECB now buy the national Bonds/Treasuries and by doing so keeps the general level of interest rates low. The ECB is about to be saturated with junk bonds and once the public finds out it is GAME OVER.
Chinese exports are coming down. You have probably seen it all over the Media. Not hard to forecast. China is a High Order Capital Good country and therefore the economy will shrink at a faster pace than in the West and create more domestic problems in China.
The Pressure is building in the Middle-East. In the Sinai between Israel and Egypt, in the north between Turkey and the Kurds/Syria where Turks are assisting rebels fighting against Assad.
Logic Mister Holmes. Russians move their savings out of Russia, Chinese out of China, Americans out of the USA and Europeans out of Europe. Such happens each time Authorities get too greedy. It always has and always will.
Progress through the Euro and the EU-zone!? Greek minimum wages (euro 586) have regressed to the 2005 level... hard to call this progress.
Because of the Depression, CAPITAL is destroyed: we have falling Real Estate prices, stock exchange losses, artificially low interest rates killing (life & re) insurance and pension funds, and (hyper)inflation or a higher cost of life and higher taxation. As a result the real spendable income decreases and we have a vicious circle which Authorities try to break through the creation of exponentially rising quantities of Fiat Money. This will more or less work until we end with Hyperinflation and Bonds-Treasuries become worthless. Rising interest rates will break the back of the Camel!
Friday august 10, 2012 - Wilders and Nigel Farage in the top 10 of the most dangerous politicians?! you must be kidding...
Updated sections: Copper-Platinum , Long term commodity charts ,
Retail Prices start to rise at an accelerated pace: talking heads incorrectly pretend this happens because the Economy is improving and the people can allow higher prices. I really don't understand where they get this crap talk from? See the long term chart for a CORRECT picture...note that we are exactly coming out of dip and that this time prices will spike a lot higher....What about $220 for one barrel of Crude Oil?? Weather conditions certainly play a role but the overwhelming factor is the exponentially rising amount of Fiat money in circulation.
Remember that because of Jim's formula and the fact that from this point on additional cheating becomes very hard the published figures will be all WORSE than expected: inflation and unemployment rates will be higher, the contraction of the economy will be worse than expected, the price of energy will go up more than expected and the cost of unemployment and medicare will be higher than expected!
Thursday August 9, 2012 - don't diversify to diversify... BUT if you do, stay away FROM fiat money !
Planet Earth is NOT flat or Extremely difficult if possible at all for an average person (and even for an average banker) aged 30 to 50 to understand Banks carry worthless money on their books; to understand that the digits on your Internet banking window are nothing more than digits, that there is NOTHING guaranteeing these bits and that the situation is even worse for the Central Banks. And this includes the Swiss banks and Swiss Central Bank. Even harder to understand that the Paper money bills are not worth the ink on the paper...Hence diversifying by putting your savings in different kind of Bank Digits and different colored Paper Money doesn't make any sense at all. Spreading your Savings over 10 different banks will not make a difference in the end; by doing so you only make your life harder...Most people who live on Earth have NEVER seen Banks disappearing. Each time this was about to happen, the Government and the Central Banks stepped in, if necessary they took over worthless entitities (Fannie Mae and Freddy Mac) and flushed the market with more fiat money....Each time the Herd was about to find out Planet Earth was round and not flat, they stepped in...and so far it worked!
Pensions? 401k's?....which pensions? Jobs? Where are the jobs? The situation in Europe will be even worse once it becomes obvious their Social Insurance system is bankrupt, gone....If only these people would have bought GOLD...but off course, who believed in Gold? Even today millions don't.
Don't scare away from Gold by those financial movie-stars like Roubini and Faber. Most of the time, they say something just to ensure the public doesn't forget about them. I know about Gold since the 1960's and I've seen it go underground in France. It all happens in a blink of an eye. [French citizens travelled all the way to Belgium to trade their gold] I know what happened to Gold in Vietnam and India....My policy about the way PHYSICAL gold must be kept, hasn/t changed and it doesn't look like there will be any changes in the short term. Important however is to have a good balance between Gold coins (large and small) and Gold bars. Also Gold bars should be kept in a different spot than Gold coins. Not really clever to keep Silver bars. Not only are they bulky but in many European countries they are taxed (up to 21%). Whatever is said and written about Gold, know that its nominal price did not rise to these levels by accident but because of a widespread distrust of other financial assets and of the banking system itself. Add to this that unlike the 1980's where stocks and especially bonds were cheap...these are now extremely expensive. What will happen next is pure logic Mister Holmes!
The PAPER market (Futures, options, warrants, turbo's) and the PHYSICAL market are two completely different things and that in the end the PHYSICAL MARKET always wins from the paper market. How hard the authorites and Banksters try, history shows they've always lost. Last time (1960's) it was the Gold pool who lost the battle...
Denison Mines and Energy Fuels announce transaction to create leading U.S. Uranium company. Denison shareholders will receive approx. 1.106 shares of EFR (Energy Fuels Resources). The operation results in a 100% pure play U.S. Uranium producers and one of the largest holders of NI 43-101 compliant US based uranium resources.
The South African stock market continues to move from strength to strength...see World Stock Market indexes. Interesting is that at this time the index is pushed up not by the mining shares but rather by Health Care and consumer related shares.
wednesday august 8, 2012 - the slightest hike in interest rates can have dramatic consequences!
Updated sections: Recession proof shares (overbought = caution) , Crude Oil (or why Europeans could soon pay € 2,16 per liter of gas and americans + $ 4.50 per gallon) , Natural gas (marginal producers are being eliminated), Coal , Agricultural commodities ,
Made by Super-Mario: Euro was overbought last week and we finally have the expected correction. In essence, Draghi told the world that the ECB will act like a central bank of a United States of Europe if the integration of European fiscal policy accelerates. Draghi’s action is pure genius because it dramatically accelerates fiscal integration in Europe. Already, Spain and Italy are contemplating joining the bailout regime, if in turn Draghi will help lower their cost of borrowing. I doubt, however, that the plan will work as the Euro has been a Frankstein since the day it became alive. Having said this, the statement was made at a time where the Euro was overbought....showing Super-Mario likes technical analysis. The Euro section shows how long the leg of the euro correction can be. Use it to convert more euro's in other currencies, especially Gold. Be advised that the more Authorities shout that "All is well Mme la Marquise" the closer we are to the end game.
Nobody seems to pay attention to the fact that Gold imports by Hong Kong/China have again soaring to record levels. Turkey also belongs to the heavy buyers. Technically "The Golden Triangle" has come to maturity and a breakout can occur any day now. Question is which Black Swan will trigger the action??
This is the IDEAL time to buy the Gold sector and/or to average down your cost! Gold and Silver coins will always buy you a bread...
Agricultural products are LOCG (low order consumer goods)
2009 proofs the price action of 2008 was a Bear Trap. September 3, 2010 we have a CLEAR fresh breakout! There is no doubt this will have a serious impact on the cooked official inflation figures. The price of Agricultural products fluctuates in a different way compared to the price of other commodities as a shortage in supply can and is adjusted a lot faster. Farmers automatically plant more crops when prices go up. Miners most of the time need 5 to 7 years to adjust production. The price of crude oil is also important for farming as it affects the exploitation price (fertilizers are also oil derivatives).
Especially in Europe (just like at the time of the USSR) the stupid politicians made that the cost of food (pork) has become cheaper than the cost of feeding the pigs. Such is not only the result of political intervention but also one of the effects of Fractional Reserve banking and the creation of fiat money out of thin air....more - scroll down!
Tuesday august 7, 2012 - Real estate is a high order capital good and extremely hard to move
Updated sections: Gold, Gold and silver shares versus common shares (common shares did better over the past 12 months...is this about to change?), Gold and Silver Juniors (special attention requested for NovaGold ), Banks & Financials
The Shiller index below (click to enlarge) looks very similar to the chart of the Mississippi scheme posted yesterday. I updated the chart and posted it again as a WARNING for those who still think investing in Real Estate will make them suvive the coming hyperinflationary depression. Not only did one month's rent barely buy bread during the Weimar Revolution but buildings were bombed during the two following great wars and even worse is that Government has once more found it's way to some unmovable assets. Who hasn't heard of the ASSIGNATS.... paper money which was supposed to be guaranteed by the Real Estate Properties Napoleon had seized from the Catholic Church. Government when pushed in a corner respects NOBODY and nobody's property, not even GOD.
- NO WONDER NOBODY REMEMBERS THE LAST REAL ESTATE... see the last cycle starting with the 1830 depression where the 1st down leg killed the exponential up leg before the top was reached. Note the small pull back and consolidation/distribution pattern before the bottom was reached in 1920. The down leg lasted for 90 years and it took until after WW II (25 years) before a new real estate boom was initiated. The last bullish leg lasted for 61 years.
- A High Order Capital Good is any good which needs capital to be acquired and is used to manufacture Low Order Consumer Goods (ex. pig stables are used to grow hogs). It is subject to the avaibility of Capital (or savings). At this time Capital is either destroyed, chased away or consumed. Capital will have to be saved/accumulated BEFORE the next economic boom can be initiated.
This has become the time of the Witch-hunting where the witch has to prove she's innocent. In Spain (and now also in Italy) the Equitalia seizes automobiles and Real Estate as soon as there is any suspicion that taxes haven't been paid properly! What is scary is that this can be done WITHOUT your knowledge and you will only find out about it by ACCIDENT!
The raging war in Syria is a perfect example of the fact that governments don't respect life. Syria is a strategic position between Iran and Israel. Israel has become an important Middle East base for the USA. Certainly after the revolutions in Tunisia, Libya and Egypt, there is no doubt the Middle East will because of the Oil, become the center of the next big War. Few, however, understand and see that the stage is being prepared NOW and that the Revolutions in Tunisia, Libya and Egypt are an inherent part of what is to come. If there is a hidden force behind the system, it is probably the force of the War Industry which receives half of the American budget. Remember the REAL danger isn't a lunatic shooting during a presentation of Batman, it's the actions of democratically elected Intelligent psychopaths.
Monday august 6, 2012 - donde esta mi dinero?
Stocks surge after Job report. This is the reason given by the idiots of the (financial) Media for the performance of the financial markets Friday. Reality is that unemployment has DOUBLED over the past months.!? Really, I don't see how this can have a positive impact on the financial markets.
Financial markets keep moving in harmony following the tunes of MANIPULATION: Dow Jones is down..Gold is down, Oil is down, the Euro is down....Dow Jones is up...Gold is up, Oil is up and the Euro is up. Quantitative easing into Infinity will have extra ordinary implications for selected investment instruments.
It's complicated? We try to keep it easy, simple, straight forward and won't publish stories just to be in the center of the attention! Sending out newsletters on a daily basis does one thing: It complicates something which should be easy. Bankers and Authorities do all they can to keep it complicated so the Herd keeps believing Santa does exist...
Record low government bond yields are a bubble, which will eventually burst as the US, UK and EU succeed in inflating away a significant proportion of its massive government debt. Meanwhile, equities remain in a valuation contraction phase which commenced in 2000. The World index sections provides a decent map about the Stock markets to be in and those which are dangerous and bearish.
|The obvious implication is that a timebomb is ticking beside today's record low long-dated government bond yields. However, the digital timing display is not observable so none of us actually know when the detonation will occur. Nevertheless, Mr Bernanke's reflationary efforts, which are in the process of being emulated by Mr Draghi, should ensure that the west experiences a much shorter deflationary period than we have seen with Japan. Meanwhile, Japan is realigning the BoJ with inflationists as the monetary hardliners retire.|
Like the Mississippi scheme killed stock holders, the Greenspan/Bernanke/Mario scheme will kill the bond holders. Mr Gross (PIMCO or the World's largest Bond fund) observes that bonds have outperformed some equity markets for much of the past 30 years, supposedly undermining the notion that equities' higher risk will be rewarded with higher long-term returns. He neglects to mention that stocks posted double-digit returns during that same 30-year period, a level of return that in no way undermines the 6%-7% long-term trend for real returns. Stocks failed to outpace bonds over the last 30 years because long-maturity US Treasuries offered yields of nearly 15% in 1982. That unprecedented yield produced a return that is mathematically impossible to reproduce given the current yield of 2.54% for the 30-year Treasury bond...but it all can change overnight and in the end the losses the Bond holders occur can be DRAMATIC. The piggy tail of the Bond story is that once this market collapses, there will be no recovery. History learns there never is.
Supply Inelasticity Meets Rising Demand or about food, all about the 1830 Belgian revolution and the arabian spring: Global grain prices almost tripled ( x 300%) in the last 10 years. If they were to double in the next 20 years it would be painful indeed even for rich countries, but simple arithmetic will show you how impossible the situation becomes for those poorer countries that start out with a 40% share of food in their budget. It is not even clear that the existing 40% share can be easily tolerated: grain prices are thought to have already played a substantial role in the Arab Spring, particularly in Egypt. Any material increases in real grain prices from here on are unlikely to be easily manageable.
Friday the 13th or History shows that bankrupt governments routinely resort to plundering their citizens' wealth to keep the party going. Bottom line, if your government is insolvent, your savings are at risk. And opening a foreign bank account is one of the most important things you can do for your savings. Greeks are starting to figure this out the hard way.
The Greek government has taken the liberty of confiscating funds directly from people's bank accounts at will. If they decide (in their sole discretion) that you might be a tax cheat, they take your money. No questions asked.
Naturally, many Greeks are now desperately trying to move their funds abroad. Unfortunately for them, some banks just don't want to be caught in the middle of this feud.
The result? Many banks are starting to turn away Greek customers or mandate large initial deposit requirements in excess of 500,000 euros. ...a classic example of what happens when people wait too long.
Only Gold and Silver is money...all the rest is a MIRAGE.
Friday August 3, 2012 - We are playing foolish games with worthless paper money!
The more you think about it, the less sense it makes: the world uses an increasingly amount of worthless Fiat money. Not only are the paper Dollars, paper Euro's, paper Pounds, paper Rupees, paper Krona's not worth the ink on the paper....it has become even worse. They are not even worth the DEBT they are representing. To put it blunt, people are doing business with each other, people are buying and selling real assets with worthless debt. Think about it, adults are doing business with paper money which is worse than the paper money used by kids.
This game stands and falls with TRUST, BELIEF and PROPAGANDA. Just imagine what will happen the moment the people realize the Emperor has NO clothes - or that what they think is money and has purchasing power, in fact is a big lie and a big joke. Imagine for a moment that this happens at a time where you are shopping. How long do you think it will take before the shelves are empty? And once they are empty, do you really believe any farmer will be prepared to restock these in exchange for worthless digits on a bank account with some bankrupt bank or more of these worthless bank notes?
We all know what HISTORY is about. We all know about the French Revolution, how and when the Americas broke loose of the British empire. We all learned about the Magna Charta. We all more or less realizethat Kings and Queens are what is left over of repressive times. We all have learned that Socialism and Communism doesn't work because the USSR and China went bankrupt before our own eyes. Why then is the world behaving in the way it does today? Why is it making the same mistakes over and over again?
How many remember what happened in one night's time during the month of October 1989 when the USSR went bankrupt!? We have a paradigm shift and the smart asses who keep playing the financial markets in the hope to make a few bucks more will be trapped either by the Authorities which will legally confiscate whatever they can to save their own neck or by the Black Swan who will change reality overnight. How many know and understand what happened in Argentina during the Bank Holiday?....
Thursday August 2, 2012 - only Gold and Silver are money, all the rest is worthless currency!
Ripley's believe it or not, but in Europe the price of pork is cheaper than the price of pig food! Government fixes the prices....and the pigs will soon eat each other...no further comment!
Central Banks are the problem, not the solution! Free markets work slower but don't create bubbles. Banks, Central Banks and authorities are in a corner and we shall see QE into infinity! By doing so, they are creating more problems and more bubbles until we have Hyperinflation and the Financial Markets and Governments disintegrate. It now is only a matter of time as how long it will take before we have the Apocalypse! Bankers, Central Bankers and Politicians will be hunted down and executed in Libya style. The assets of the Federal Reserve are Treasuries (worthless government debt) which they buy from Government by issuing a fraudulous check...
Bernanke and Super Mario are the modern versions of John Law. Banks, Central Banks and Authorities are in a corner and we shall see QE into infinity!
Since, following the devastating War of the Spanish Succession, France's economy was stagnant and her national debt was crippling, Law proposed to stimulate industry by replacing gold with paper credit and then increasing the supply of credit, and to reduce the national debt by replacing it with shares in economic ventures. Though they failed, his theories ironically live on 300 years later and "captured many key conceptual points which are very much a part of modern monetary theorizing"...more
This is a contemporary political cartoon out of the time of John Law. It is called "Het groote tafereel der dwaasheid". [The great scene of folly or a political cartoon at the time where John Law lived...](click to enlarge). Politicians and Authorities have learned NOTHING from 300 years of history. John Law was one of the first central bankers who operated in France.
WEDNESDAY AUGUST 1, 2012 - DURING THE SUMMER HOLIDAYS WE CAN'T BE SERIOUS ALL THE TIME!
Enjoy DEBT BOMB by Comedian Dominic Frisby:
The US-NATO War on Syria: Western Naval Forces Confront Russia Off the Syrian Coastline? While confrontation between Russia and the West was, until recently, confined to the polite ambit of international diplomacy, within the confines of the UN Nations Security Council, an uncertain and perilous situation is now unfolding in the Eastern Mediterranean. A Chinese War vessel has entered the Mediterranean through the Suez canal. Remember that history teaches an economic depression ALWAYS ends with a major war...My guess it that the Middle East will see the worst of it.
Madrid, riot cops, rubber bullets … ‘this is the new normal’ “They’re shooting rubber bullets now, too,” he said.
Robbie and I were swept up in a wave of fleeing protesters as the riot police gave chase through the narrow streets. One week earlier, I had run with the bulls in the famous encierro of Pamplona, and I wasn’t half as concerned for my safety then as I was when I saw the men in black helmets unholstering their riot guns. “¡Perodistas! ¡Perodistas!” I yelled as they approached us on Plaza de Santa Ana. But they weren’t going to stop, so we turned and ran, which is when one of them came up behind me and kicked me in the back of the leg, somewhere near the pit of my knee. I went down, but oloroso sherry is as fortifying as it is fortified, and as Robbie ran up to help me I pulled myself up off the ground and stuttered: “Did you see that? I was yelling out that we were journalists.”
We are living the end of Made-in-China and the Chinese stock market index shows it. DO CHECK our Long term stock market indexes for more....doesn't look good. Even the Australian Stock market is a question mark..