NEWS AUGUST'17 (public)
Thursday August 31, 2017 - The truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end, there it is.
Updated Sections: Aussie-Gold & Aussie/$/€ , Swiss-Gold & Swiss/$/€ , Can$-Gold & Can$/$/€ , ¥-Gold & ¥/€/$ , £-Gold & £/€/$ , R-Gold & R/$/€ , Majors , Coal/Solar & Rare elements ,
This is a picture of the intervention/rigging by Central Banks and the 40 Thieves. HAHA...you can see their days are numbered.
- In the long run, what today they call Green and Renewable ENERGY cannot exists. It only will survive as long as they create fiat money out of thin air and we have fractional reserve banking. Nuclear however will survive because it is the only modern and economical source of energy. Mainstream Media (LIARS MEDIA) ommit to mention the progress Nuclear Power stations make (it's not politically correct).
- While gold prices are influenced by macroeconomic developments and market uncertainties, demand for other metals, like lithium and cobalt, often depends on innovation. Reports by Markets and Markets estimate that the lithium ion battery market value was USD 23.51 Billion in 2015 and is expected to grow at a CAGR of 16.6% between 2016 and 2022. Lithium cobalt oxide battery type is expected to hold a major share of the market by 2022. Lithium cobalt oxide based batteries provide high energy density, higher than other lithium batteries, and therefore are expected to increase in demand as a power source for smartphones, tablets, laptops, digital cameras and among others. xxxx xxxx xxxxx (xxxx), xxx xxxx xxxx (xxxx), xxxxx xxxx (xxxx) - see section Coal/Solar & Rare elements.
Data published in a report by Research In China, reveals that in 2015 the global refined cobalt output was 98,000 tons or up 6.9% year over year, meanwhile the demand jumped 9.9% year over year to 89,000 tons. The report projects that the global cobalt demand growth will be much faster than the supply growth with the expected gap of around 1,000 tons by 2020, as the demand for new energy vehicle-use batteries escalates. Congo and other cobalt giants change policies as well as copper-nickel mines are shut down due to price pressures.
- Following 2 shares are a BUY at present levels.
|see subscriber's section|
- xxxx (xxxx) (Cobalt) has broke out and is a buy.
see subscriber's section
Copyright 2017, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.
Wednesday August 30, 2017 - Miners confirm the breakout of the Gold & Silver sector
The Swiss central bank may be part of a modern age Tulip Bubble. Swiss Central Bank Boosts Stakes in FAAMG Stocks by 77 Percent to $9.38 Billion.Since June 30 of last year, Switzerland’s central bank, the Swiss National Bank, has increased its stock holdings of five U.S. social media/tech stocks from $5.3 billion to $9.38 billion, an increase of 77 percent in 12 months. The stocks are xxx, xxxx (parent to xxxx), xxxxx, xxxx and xxxxx. The stock information comes from a 13F filing the Swiss National Bank made this month with the U.S. Securities and Exchange Commission (SEC), a quarterly form required of institutional investment managers who manage $100 million or more. It owns tens of billions of dollars more in other U.S. and global stocks.
Adding to the peculiarity of this central bank, its own stock actually trades on a stock exchange and its stock price has soared by 88 percent since April. (See chart above.) According to the website of the Swiss National Bank, it “does not pursue any strategic interests in its equity investments and as a general rule does not engage in any stock selection.” It says its share holdings are “managed passively by replicating a combination of different indices.”
Stock markets will continue to go up as long as Central Banks BUY commons shares. I presume they know WHY they do it: it increases the money supply...by buying REAL ASSETS instead of THIN AIR or Bonds which are already OVERVALUATED.
Veteran Subscribers know that Peter Schiff also reads Goldonomic. With respect to gold’s prospects during the next six-to-twelve months, we believe the single greatest catalyst will be consensus recognition that the Fed cannot truly tighten without significant harm to global financial conditions. Our longtime study of U.S. debt levels has convinced us of one incontrovertible relationship: the U.S. economy cannot bear rising interest rates, on either the long or short end, without an immediate surge in financial stress.
- Most Miners are breaking out of interesting technical patterns. Remember that most of the time we have a BACKTEST after the breakout and that if you're late, you often get a second low risk opportunity during the Backtest. Click on the charts to enlarge (only for subscribers) - see sections for Majors, Juniors & Royalties for more.
Copyright 2017, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.
Tuesday August 29, 2017 - Gold BREAKING out: subscribers remember our full moon eclipse advice!
The market certainly doesn’t think further rate hikes this year are very likely, and for a bad reason. The FED may be more cautious regarding further tightening due to a lower inflationary environment. And this is exactly what is happening. What many people however don't get, is that with rising money supply Interest Rates can also rise!
|Near ZERO is the end of a 35 year downtrend...||Debt is dramatically worse than in the 1930's|
Reality is that with the amount of debt we have zero and near-zero nominal interest rates have no or little room to come down. Reality is that inflation is looming and could surprise us all by surprise and have a severe impact on interest rates. If not Inflation, it may occur because some Black Swan appears.
Also note that today's U.S. Debt to GDP is worse than in the 1930's. In other words....over the coming years we may expect a situation which will at least be as bad as the Great Depression, if not worse.
- As Gold & Silver breakout, Financial Media and Media will try to find the weirdest excuses to explain WHY the breakout occurs. The REAL REASON however is almost never mentioned.
- Gold & Silver sector continues to breakout....Three times is a charm!...see sections for the candle charts.
Copyright 2017, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.
Monday August 28, 2017 - $-Gold on the verge of an important breakout?
Updated Sections: Major fundamentals (Kinross) , Junior Fundamentals , US-Dollar , €-Gold & €/$ ,
When Money Supply rises, interest rates should come down! In reality interest rates seem to be moving sideward and thechnically speaking we have a DISTRIBUTION zone...or sooner or later we shall break out and see higher interest rates. Not hard to forecast. However as interest rates have been coming down since 1981, MANY have problems in believing and accepting that with the Historis outstanding DEBT Interest rates can not possibly stay so low for much longer...
Important Fundamentals: only for subscriber's
Important Technicals: : only for subscriber's
Friday August 25, 2017 - What to expect when interest rates rise?
Updated Sections: £-Gold & £/€/$ ,
The map pictures the HUGE number of houses which are on the market FOR SALE in East Port St-Lucie, Florida. People have no REAL BUYING POWER left. The REAL INFLATION took it away. One can cook the inflation figures, but one can not cook the reality of life. At first food stock were sold in tricked-smaller packages but later on prices were increased. One Dollar on a $4 item is a 25% price hike!. When life gets expensive but REAL INCOME is not adjusted, people sell their homestead and buy another smaller one which comes with lower or no HOA fees. At the same time, a lower interest rates can be locked in. The total monthly cost of a Homestead is lowered and Credit Card debt is paid off. [interest on credit card debt can run into the 20% and more].
Prices of Real Estate in this area average $200,000 to $350,000 for a home between sqft 1800 (180 m²) to sqft 3000 (300 m²). As a rule houses are build according to the Florida Hurricane standards & legislation. They come with at least a 2 car garage, central Airco, central vacuum, theft and fire alarm in each room, high ceilings, very well isolated and a low energy consumption, kitchen with large fridge, oven, microwave, etc. , washer and dryer, pre-installed internet, cable tv in EVERY room. You name it and you will find it.
If Interest Rates resume their uptrend it will negatively affect the Real Estate market.
Once interest rates go up, corporations will have to sell their own stocks to pay back the debt they have and this will push shares down and may initiate a stock market crash.
- SELL the xxxx and domestic xxxxx, especially the RETAILERS.
- SELL xxx, xxxx and xxxxxx stocks: we may be reaching peak “military industrial complex”. In the coming years, the main foreign clients of Western weapons, namely Middle-Eastern monarchies may either implode or take their business to China/ Russia. Meanwhile, Western defense stocks are priced for an ever growing order book.
- SELL xxxxxxx bonds: There is little value in these xxxxx and should Germany ever decide to rotate away from further European integration, they would crash. At this point, these bond markets represent “return-free risk”.
- BUY xxxxx: xxxxx may well be among the world’s cheapest, yielding almost 8% for a real yield of above 4%. This for a country with almost no external debt to speak of, huge amounts of (Chinese) capital about to pour in, and a by-now established position as the first supplier into the world’s fastest growing market for oil imports.
- BUY xxxxx: One of two things will happen. If Saudi Arabia continues to refuse renminbi payments, Russian energy companies will end up owning the Chinese market. Alternatively, if Saudi starts to accept renminbi payments for its oil, the US dollar will take another leg-down and energy prices will rebound (ensuring a rebound in oil stocks everywhere).
- BUY xxxxxx: As China moves to create both oil and gold contracts denominated in renminbi, and as more Asian and global trade starts to be denominated in renminbi, it is hard to think that total returns on renminbi bonds will not surpass those of most Western currencies. The returns may come from falling interest rates (as a growing number of market participants are forced to keep renminbi deposits to fund trade), or rising exchange rates. Or, most likely, a combination of both. But today, very few investors, and even fewer large institutions own any renminbi bonds. In five years’ time, the situation may be very different and it may make sense to buy renminbi bonds before Saudi Arabia confirms the currency shift as by that point a lot of the gains will likely have been harvested.
- BUY xxxxxxxx: In an initial phase, most countries and market participants will likely stay skeptical of China. As such, the demand for gold, as settlement for renminbi trade, will likely pick-up. At the very least, at current valuations, gold miners can be considered an option on market participants doing more in renminbi (to please China), yet exchanging their renminbi for gold (out of a lack of trust for the new continental empire).
There is a DRAMATIC shortage of LITHIUM. Tesla gigafactory might be the first large-scale lithium battery plant for vehicles and powerplants but it is just the beginning of what is a significant build out in production capacity as progressively more auto manufacturers roll out plans for electric vehicles. Against that background miners are scrambling to keep up with supply. This is about as close as a throwback to the heady days of the commodity boom as one might wish for and is a fresh example of the supply inelasticity meets rising demand model. [see subscriber's section for more]
- Pound Sterling worth less than euro in British airports as it plummets to 8-yr lows. Technically speaking the Pound Sterling has confirmed it sits in a SECULAR BEAR TREND versus the Euro. This will without doubt affect the Real Estate prices in France, Spain and Portugal as many retired Brits will have to sell their properties and return to the UK. [Remember the UK is a canary in the coal mine!]. Only Britons who kept their savings in GOLD & SILVER are good!
Thursday August 24, 2017 - WARNING: we expect a new crash of the American Real Estate.
The day the Gold Cartel looses its power over the Gold and Silver market because of a BLACK SWAN, it will be GAME OVER for: Crypto-currencies, Currencies, Bonds, Derivatives,...and we shall have a CRASH on the Stock Markets.
Over the past three years alone, Sears has lost more than $5 billion. And its stock price is down nearly 75% since 2014. The company has had to lay off more than half of its peak workforce, around 200,000 employees.
To add insult to injury, the company spent about $6 billion over the past decade buying back its shares at prices as high as $174 a share. Shares now trade below $9. That’s a 95% loss to shareholders. Sears recently announced it will close an additional 43 stores (on top of the 265 closures it already announced this fiscal year). This will leave the company with 1,140 stores – just above half its 2012 size. and it means the sudden loss of another 140,000 American jobs.
Some of the largest and most vulnerable retailers include Sears, Macy’s and JC Penney, and in total those companies employ close to 400,000 people. All three of these companies could – and probably will – go bankrupt. But it would only take one of these stores going under (a near certainty) to roil the US economy.
- xxxx is set to purchase xxxxx for almost $5 billion plus $2.5 billion in debt. The deal expands xxx portfolio, making it one of the largest oil producers in the world. The acquisition means that xxxx is expected to be able to produce 3 million barrels of oil equivalent per day by 2019.
- Kuwait: oil inventories are falling because OPEC deal is working. Kuwait’s oil minister Essam al-Marzouq told CNBC on Monday that U.S. crude oil inventories are decliningfaster than expected, a sign that the OPEC deal is working as planned. “We are now seeing the impact of those cuts (in the first half of the year) as U.S. oil inventories fall by more than expected,” he said. “Week after week we are seeing a much bigger-than-expected fall in inventories.”
- Lithuania receives first U.S. xxxx cargo. In what could be a watershed moment, the first U.S. xxxcargo landed in Lithuania, providing the Baltic States with an alternative source of natural gas. The Baltics have been wholly dependent on Russian natural gas, and the landing of a U.S. xxx cargo has already forced Gazprom to lower its prices. Meanwhile, Russia is trying to protect market share in its backyard, lowering prices, seeking an expansion of the Nord Stream pipeline system, and also developing its own xxx. The competition between U.S. xxx and Russian gas in Europe will play out in the years ahead – U.S. xxx supply is set to climb sharply next year and again towards the end of the decade.
- Tesla’s bonds drop in value on financial concerns. Tesla (TSLA) issued corporate bonds almost two weeks ago, which have since declined in value by more than 2 percent, the WSJ reports. The bond issuance of $1.8 billion were aimed at paying for the mass production of the Model 3, the mass market electric vehicle. The annual yield is as high as 5.3 percent, but because the bond price has dropped over the past week, the yield has jumped even higher. The price decline shows that bond investors are concerned that Tesla, which has not turned an annual profit, is becoming more risky as it accelerates spending. The existance of Tesla is made possible because of misallocation of funds and fractional reserve banking!
Wednesday August 23, 2017 - If all the power you ever used came from nuclear, your lifetime waste would fit in a soda can
Updated Sections: Education Hall - Mme La Marquise , Gold and the Great Depression , The Tulip Mania , The Mississippi Bubble ,
Green renewable energy is a MONSTER kept alive by Fiat Money created out of thin air; it is fed by Fractional Reserve Banking and unscrupulous politicians and their Red-Green Mainstream Media . A misallocation of funds it is.
|1 pound provides as much fuel as 3.5 barrels of oil, 17,000 cu.ft. of natural gas, and 1 Ton of coal.
5 pounds produce a household's electricity consumption for a year.
Sector is suffering from Misallocation of funds, into what Propaganda calls "Renewable Energy" !
It takes nearly 7,000 wind turbines to equal the output of a single typical nuclear power plant!
Russia not only buys GOLD but also pays back outstanding debt. While the West suffers under growing debt and the US Debt ceiling Russia pays off balance of Soviet Union's debt. Moscow made the final payment on the remaining foreign debt inherited from the Soviet Union. Russia took on the debt after the other former Soviet republics refused to pay.
In 1994 Russia took on all the debt in exchange for property all around the former Soviet Union. As of 1994, the debt of the old USSR was almost $105 billion. [compare the figure with American debt running in the TRILLIONS] The largest part of this amount (over $47 billion) was to the Paris Club of creditors. It was a pool of 19 creditors, mostly in the West including the US and the UK. Russia actively began to repay debts under the presidency of Vladimir Putin, which also coincided with a surge in oil prices, giving the country extra foreign currency.
|Complacency is a state of mind that exists only in retrospective: it has to be shattered before being ascertained.|
If Trump is impeached, the Dollar will crash and even worse, I expect a CIVIL WAR in the USA.
- Macy's proofs we have a SEVERE DEPRESSION! The REAL buying power is gone and debt is extremely high...only the Authorities and Mainstream Media refuse to admit is. [click to enlarge]
- Following shares are a BUY at present levels (except for xxx which is an ETF)
|see subscriber's section|
Tuesday August 22, 2017 - The Risk reward for common shares is too high.
Updated Sections: Treasuries in the EU, Corporate bonds ,
Peter Schiffs slams the stock market, Bitcoin and the Fed. The video confirms our vision on the markets
We have several Shares showing BREAKOUTS...come back tomorrow for details, targets and names!
- Although people are continuously BRAINWASHED and told Government is good for them, this is no longer true. This is what Basic Economics learn. BASIC ECONOMICS are very simple to understand and in the long term, they ALWAYS overcome. This is true for matters as Basic Income, Health (Obama) care, International Trade, etc...Government no longer does what it is supposed to do (protect the people) and does what it should not do (tax the people and meddle with the economy). The danger however is that "the people" thinks and is brainwashed that Government is actually good for them (Venezuela). Societies with too much government ALWAYS go bankrupt: Rome, the USSR, Zimbabwe, Argentina, Venezuela,...
- Gold & silver Miners are the CHEAPEST investment vehicle one can buy today....Gold to be mined (in the ground), for that is what Miners are, are even cheaper than the mined Gold and Silver. The only danger which comes with these shares, is that the trade can be stopped when i.e stock markets are closed are a consequence of a financial Black Swan. Physical Gold is a lot easier to transport if one - for some reason - needs to leave his homestead.
- A BREAKOUT is visible of the Miners versus the SP500. In other words, over the coming weeks and months MINERS will perform BETTER than common stocks. See section of World Stock Market indexes expressed in Real Money or Gold for the LONG TERM picture. There is NO DOUBT that over time the Gold and Silver sector performs A LOT BETTER than the other sectors : common stocks, bonds, real estate, etc...
- Note the correlation between $-Gold and the exchange rate of the Yen/Dollar.
Monday August 21, 2017 - The events in Spain and Charlotteville happened in different locations but are the consequence of the same Evil!
Updated Sections: $-Gold , ¥-Gold & ¥/€/$ , Shares are Real Assets , Long Term Stock market indexes (new chart) , Silver price Targets ,
The Western World is in a process of being destroyed, and will be ripped apart over the next 100 years. Veteran subscribers and readers know that for months we have been explaining WHY society will continue to degrade and that over time we will see more and more CIVIL unrest, War, Civil War and Revolutions. What happens in Europe (Spain) and the USA (Charlotteville) is in fact nothing more but a confirmation of our forecast. And it will get a lot worse before it gets better. Actually, it will probably take AT LEAST THREE GENERATIONS before the situation will reverse.
Immediate satisfaction has become #1 on the hit list. Political and Social events are nothing more but a crystallization of the Economic and Financial Depression. Mainstream Media and Authorities are blaming OTHERS for something they have created themselves. Today's' generation lives in the conviction everything MUST be made possible, NOTHING should be impossible and that Government should see they get TODAY all the goodies (from the womb to the coffin) for free.
|Modern Politicians are no better than Louis XIV, Louis XVI & Marie-Antoinette.|
The HERD keeps remembering the World Wars and gathers with flowers, candles and sings songs each time a dramatic event occurs. NOTHING however is done to ensure similar events do not happen again in the future. Even worse: police most of the time knows who the extremist are and where the potential murderers live...and doesn't do shit. The CIA warns the local Authorities...but these don't do shit!? Maybe they know the POLARIZATION between Right and Left will only get worse over time and that through "action" they will only ensure the catharsis comes tomorrow instead of next week?!
|At the time of Alexander the Great one TALENT (26 kgr silver) was a lot of money. One kgr silver was worth over $ 500 (€ 427) or more than $15 (€ 13) per oz.|
- Just like happened to Gold & Silver, xxxx xxx (xxxx) moves also into backwardation. For the first time in years, the Brent futures curve has flipped into backwardation, a sign that the oil market is healing. Backwardation – when front month contracts trade at a premium to futures further out – will help drain inventories as it becomes uneconomical to put oil in storage. The backwardation is a significant development.
- xxxx xxxxx are the most UNDERVALUED investment vehicle on Planet Earth!
- xxxxx xxx declared a final dividend for the year ended June 30 of 35 cents per share taking the total dividend to 85c/share a 70% increase year-on-year performance that CEO, Peter Steenkamp described as disciplined”.
- SHARES are the 2nd best instrument to preserve your savings. If always was and always will. Best off are those who had the GUTS to BUY during the 1987 and 1929 crash. Only 6 months after the 1929 October crash, market indexes had recovered by 60% ! Also read our section: Shares are Real Assets..click here.
- Remember common stocks and stock markets are DRAMATICALLY OVERBOUGHT and although higher is still possible, the crater BELOW is HUGE!
- Watch out once Go(l)d breaks the $1328 level !!!!
- Gold miners are broadly higher after Comex futures break above $1,300/oz. for the first time this year, sparked by a selloff in global equities
- BITCOIN: wonder what a BUY CLIMAX and SPINNING TOP looks like?! see chart below. This is the 3rd and 4th generation of the 21st century populated by IDIOTS CHASING AIR...
Friday August 18, 2017 - The Great Disconnect: Markets Vs. Economy - the disconnect between the economy and the financial markets will merge.
Updated Sections: Bonds USA ,
"While the Central Banks and Authorities keeps promising with each passing year the economy will come roaring back to life, the reality has been that all the stimulus and financial support can’t put the broken financial transmission system back together again. Eventually, the current disconnect between the economy and the markets will merge. Such a convergence is not likely to be a pleasant one."
Government assistance is at an all time high and is made possible because Central Banks can create FIAT MONEY out of thin air and the fractional reserve Banks use to create even more money. The problem is that because of the Depression and the Aging Baby Boomers, the pressure on Government expenditures will even increase....but there is no MONEY nor CREDIT left to cover the demand.
Gold is an excellent instrument to preserve BUYING POWER...on condition that you keep it in the right place..out of politicial reach.
|Gold is a store of value because of its immutability, relative scarcity, beauty and global acceptance as a fungible asset. The fact it has history on its side as a store of value ensures there will always be investment interest in the "barbaric relic".|
- We have a DAMN DEPRESSION...like I have been telling for years now. Wal-Mart Slides, Free Cash Flow Fails To Cover Dividends And Buybacks. If it wasn't for FOODSTAMPS, the soup lines would be longer than during the 1930's.
- The SP500 had a healthy pullback, but the long-term bull market is still intact. The END of the Summer Rally however is near...
- The Bond market is still topping out.
- Gold & Silver are still on the verge of a breakout...however we need to see MORE action.
Thursday August 17, 2017 - (big) Government ALWAYS brings misery. It by definition always has and always will!
The countries with the highest public spending (and highest taxation level) are those where over the years Gross National Product is performing WORST.
The problem is that Central Banks are no longer in a position to DECREASE the Money Supply. If they do, Interest rates will soar and what we call today a Recession will become a SUPER-DEPRESSION overnight. The Bond bubble can no longer be inflated (interest rates are zero percent). And the Real Estate bubble will deflate even at today's low interest rates because REAL SPENDING power is gone [real spending power is gone because REAL INFLATION RATE is a lot higher than the official figures pretend]. Stocks and Stock Markets can be further rise on condition the Central Banks continue to BUY Shares...and that is exactly what they are doing now.
The world has been thriving on debt and more debt for the last decenia. More debt means consumption is "pulled forward" from the future so consumption can occur now. This usually ends badly. The same can be said about REAL ESTATE. Low interest rates and the Real Estate Mania has pushed more and more people (and also investors) into the Real Estate market although demand will fall over the coming years.
- Euro Junk bonds are worth as much as US-Treasuries....and this spells not a lot of good for the US-Dollar.
- The long term xxxx chart shows a huge CUP & HANDLE pattern. [long term chart patterns are more reliable than short term chart patterns]
see subscriber's section for chart
- xxxx chart shows a staircase uptrend and remains a BUY.
see subscriber's section for chart
Wednesday August 16, 2017 - EU citizens will have to pay taxes to the EU sooner than they think!
Updated Sections: Crude Oil price, Coal, Solar & rare Elements , Agriculturals , Copper, Platinum & Non-Ferro's , Inflation Index ,
When the EU falls apart, thousands of (mainly government) jobs will be lost. Not only politicians will loose what they saw as the utimate EU-job, but all petty government employees which come with the EU and the ECB also will ... Having said this, I am not sure at all the when the EU breaks up the Euro will also disappear. The odds are that the stronger European coutries may decide to keep the Euro as their currency.
As the UK leaves the EU - BREXIT - the EU will stop receiving the billions which the UK paid each year to the EU. Therefore the EU will have no alternate but the INCREASE the general level of taxation. The odds being that EU citizens will also have to pay an EU-TAX sooner than they think.
On gold and silver, never mind the price drop we had since 2011. "They're real money, always have been, and you are going to need it. . . . How can it be silly to hold real money? Americans (but also Europeans) are going to have to face up to the fact that wehave been deluded by a propaganda press that was attempting to sow a particular viewpoint around the world. We tried to conquer the world with dollars, euro's and the threat of bullets . . . . Our dollars were accepted all around the world, and people gave us real stuff for those green pieces of paper. They're not going to do that anymore. So, if you want that coconut from Malaysia . . . you are going to have to pay something that has value. Those little green pieces of paper will not after a short period of time. They are going to have value inside the country for a while, but outside the country, people are going to say I want gold or silver or oil. I want to see something of value."
"At some point in 2017, probably past mid-year, we're going to be looking at hyperinflation so bad that the DOW will be measured around $100,000 to $125,000. Meaning, the dollar will be so worthless that it will take $125,000 to buy the little basket that is the DOW. I also have language that says an ounce of gold will be approaching the DOW in terms of value. This is not ludicrous. In the last depression in 1933 and 1934, after the shutting of the banks . . . we had a point where gold and the DOW were the same, and gold dominated the DOW for decades."
Important Fundamentals: see subscriber's section
Important Technicals: see subscriber's section
Tuesday August 15, 2017 - Is the breakout of Bank shares stalling?
Updated Sections: Uranium shares , Bank & Financial shares , Video Section ,
Excellent German video about Money...with subtitles in different languages.
BITCOIN and DIGITAL currencies is nothing but THIN AIR! If we ever gonna have digital currencies they will have to be backed by GOLD!
Under normal conditions, the profit figures of Banks improve when Interest Rates rise. This time however the situation is different: (see section for Banks & Financials for more...)
- there is little, NO ROOM for higher interest rates.
- the value of the High Order Capital Goods (Real Estate in particular) will continue to suffer...and this will severely impact the balance sheets of the Banks and Financials.
The West is lost: low IQ cultures don't mix with high IQ...even worse, they overtake the high IQ culture!
Updated Sections: World Stock Market Indexes , Indexes in Gold (bearish) ,
Better prepare for SHARIA-LAW now - Everybody should watch this video clip. The EU will be dancing to the tunes of the Barbarians in less than 5 years from now. An economic depression can be overcome...a Barbarian cultural invasion NEVER unless there is a WAR, Civil War, Revolution,...Having said this, a society without a RELIGION never survives and a Religion cannot be replaced by the surrogate of Global Warming Religion, or Green Energy Religion.
Germany Migrant's crime rise by 50%. Those who keep buying Real Estate in Europe, Germany, The Netherlands, Belgium, France, Spain, Italy,...are just CRAZY people who refuse to see the REALITY of tomorrow.
- Central Banks CANNOT risk/allow a crash. In due time they will start QE4 and this will push stock markets even higher!!! (and the US-Dollar lower)
- A Pennant is a COIL and a VACUUM develops beneath and above the pattern. The formation is mature as soon as 3/4 - 4/5th of the pattern has been completed. Once the pattern is completed, price will break DOWN or break UP. See individual sections for larger detailed charts and PF targets after breakout.
- The gold miners’ stocks have largely ground sideways this year, really lagging gold’s strong rally. That lack of upside has decimated sentiment, leaving a bearish wasteland bereft of hope. But this deeply-out-of-favor sector is actually a coiled spring, ready to surge dramatically as psychology shifts. Sentiment, technicals, and fundamentals all point to much-higher gold-stock prices even at today’s prevailing gold levels.
- The Dow Jones Industrials, SP500, Dow Transportation index: all are seriously OVERBOUGHT and a correction would be very positive for markets in general. See section for World Stock Market indexes for details. [section has been re-organised]
- XXX XXX shows a BEAR trap, has broken out and is a buy! [see section of Uranium shares for chart and more]
Friday August 11, 2017 - North-Korea and his leader may be helping Gold & Silver to break out..or will it just be the excuse CNN will use!?
Updated Sections: Indian Rupee-Gold & IR/$ , Yuan-Gold & Yuan , Kro-Gold & Kro/$/€ , R-Gold & R/$/€ , £-Gold & £/€/$ , ¥-Gold & ¥/€/$ ,
EU to ban cash withdrawals. Another very dark new development is that the European Union is considering measures to stop people withdrawing cash to stop bank runs. The plan is currently being discussed and would block pay-outs for 5 to 20 days. Once this law is in place, it is very easy to extend to much longer periods or to become permanent.
The trend is clear. Governments worldwide know that the banking system is totally bankrupt. The problem is that most governments are also bankrupt. The only solution they have is to print money but as I have discussed above, money printing will solve absolutely nothing. Nobody holding cash or assets in the bank must believe that the government guarantees of $100,000 or €100,000 is worth anything. Firstly, governments haven’t got any money and secondly they will renege on their commitments.
Those who have bank accounts OUT of POLITICAL reach (outside the EU) won't encounter these problems as they will be able to use their foreign Credit/Debet cards to withdraw money out of the ATM machines. It is naturally a lot easier (and often mandatory) if you have a 2nd residency/passport to have a bank account abroad where you can park money in a legal way.
- Silver traded very differently Tuesday than it has in some time. And then today, we haven't seen this sort of power to the upside all year. Silver is The Gold Cartel's kyrptonite. If JP Morgan & Co. have reached a Tipping Point in their ability to supply enough physical silver at these lowly prices, then we are off to the races towards $100 an ounce.
- Gold and silver are the cheapest assets on the planet. Meanwhile the precious metals bullish sentiment in the United States is at the lowest levels in decades, thereby creating a contrarian's dream investment play.
- xxxxxxx xxx is to sell its 90% stake in its Ghanaian gold mine Nzema for $65m to BCM International, a mining and civil contracting company. As a result of the proposed transaction, the mine has dropped full-year production guidance for its 2017 financial year.
- note the dramatic comeback of the xxxxx xxxx...orchestrated?
- the bigger the COIL (=accumulation) , the bigger the vacuum and the more dramatic the next upleg for xxx and xxxxx.
- technical indicators for xxxxx keep turning bullish. See charts below.
|see subscriber's sections for more....|
Thursday August 10, 2017 - The weaker US-Dollar will impact more than you expect it will.
As nothing is manufactured in the USA (except for Airplanes, Guns, Ammunition, Canons,...), a lower Dollar will push up the Cooked Inflation numbers. Most hardware is MADE in CHINA and most food stocks in Mexico, Central and South-America. In all cases, the price of Commodities which are expressed in US-Dollar will bounce up; including the price of ENERGY and OIL, NATURAL GAS.
- Silver production of the 4 largest Silver miners decreased by 50% over the 1st half of 2017. When mining becomes a loss, miners simply stop mining... and because PRICE is rigged, Supply dries up. According to the most recently released data from Chile’s Ministry of Mining, the country’s silver production declined a stunning 26% in the first quarter of 2017. This is a big deal as Chile is the fourth largest silver producing country in the world. The majority of Chile’s silver production comes as a by-product of copper production.
Not only is Chilean silver production (plata) down 26% in the first three months of the year, gold mine supply (oro) is also down 22%. While a 22% decline in Chile’s gold production is substantial, the country only produced 43.3 mt (1.4 million oz) in 2016, compared to 1,496 mt (48.1 million oz) of silver.
Chile isn’t the only country suffering from falling silver production this year. As I stated in a previous article, Huge Decline In Peru’s Silver Production Suggests Future Production At Risk, Peru’s silver production declined 12% FEB 2017 versus the same month last year.
- xxx may have discovered new shale gas source in New Mexico. xx (xx) said that one of its shale gas wells in the Mancos Shale in New Mexico reached the highest production rate in 14 years – 12.9 million cubic feet of natural gas per day in the initial 30-day period.
- xxx section: see medium term targets for xxx expressed in US-Dollar and Euro...click here
- xxxx is a buy at present level...see recession proof shares.
Wednesday August 9, 2017 - Gold was more than a full moon...it was also a full lunar eclipse.
Have you got your second PASSPORT (Perm. Residency)? A lot will change in the world as of January 1st, 2018 . Today it is still not too late to prepare yourself. Be advised that next year it all will become more difficult and cost you more money. Now is the time to avoid the trap....the longer you wait, the more it will cost you (also in taxes). For more information, send email to
Lesson: the smartest Greeks simply sold all their belongings, real estate, slaves and kept their savings in Gold and/or Silver. It was even better to emigrate to Rome where Goverment gave away FREE land to all new immigrants.
353 BC Ancient Greece had become deeply divided. The new trade routes created a lot of wealth for many people. Others were left behind. Plato called it “the two cities” of Athens -- “one the city of the poor, the other of the rich, the one at war with the other.”
Eventually the poorer citizens were able to take over ancient Greece’s prized democracy. And, putting themselves firmly in control of government institutions, the new politicians came up with the most creative ways of raising taxes, seizing property, and redistributing wealth. They doubled taxes. Import duties and export fees were increased. Real estate transfer taxes soared. Naturally they targeted the RICH citizens first.
But their methods weren’t working. The poor remained poor. So the government raised taxes even more and ‘broadened the base’ to also include most of the middle class. It still didn’t work. They failed to realize that stealing people’s money doesn’t create long-term prosperity.
Commerce and economic growth ground to a halt. Anyone with any wealth, savings, or assets focused almost exclusively on protecting themselves against government confiscation.
In 355 BC the government established a new, special police force to seize assets and imprison well-to-do citizens. Violent outbreaks became commonplace. Class warfare erupted. In the 4th century BC, the lower classes in Argos and Mytilene banded together and massacred over 1,200 wealthy citizens.
The ancient Greeks were so busy fighting each other over their own money that when Alexander the Great’s father invaded Greece, he was practically welcomed as a liberator.
|If you have money, you are GAME and be advised that over the coming years Taxation will only get A LOT worse..a LOT WORSE!|
- Following shares are a BUY at present levels.
|see subscriber's section for details...|
|see subscriber's section for details...|
- Full lunar eclipse for Gold and long term trend.
|see subscriber's section for details...|
|see subscriber's section for details...|
Tuesday August 8, 2017 - Fly me to the moon or exact the same scenario as during the 1920's...until 1929 that is!
Updated Sections: Gold & Silver Majors, Juniors, Royalties ,
Just like in the 1920's Stock investors are rejoicing about stock markets making new highs in many countries, totally oblivious of the risks or the reasons. It seems that this is an unstoppable rally in a "new normal" market paradigm. No major increase is expected in the inflation rate or the historically low interest rates. The present rally has lasted 8 years since the 2009 low. There is virtually no fear in markets so investors see no reason why this favorable climate would not continue for another 8 years at least.
"The truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end, there it is."
China will probably pull the plug on the Western World....When The Crisis Hits, Financial Markets Will Shutdown Throughout 80%-90% Of The World....By manipulating markets and creating infinite liquidity, central banks are not just temporarily putting off the demise of the financial system, they are also creating a false prosperity by fueling global stock markets to new highs.
For stock prices to grow, money must be printed. For GDP to grow by one dollar, credit must be expanded by several dollars. At the same time, billions of dollars of paper gold contracts must be created and sold to keep the gold price down. Because a high and true price of gold would be a sign of economic mismanagement and must therefore be prevented at any cost.
Whenever people starting buying up some item or asset exclusively because they expect to sell it quickly after a rapid price increase, and not for the asset or item’s originally intended purpose, you can be certain that you are in a bubble.
- Breakouts on candle charts and buy's:
|see subscriber's section for details...|
- This are rather important candle charts for $-Gold. VERY SIGNIFICANT if price breaks the $1280 - $1320 ( check the bullish triangle on the short candle for $-Gold in the section of $-Gold).
see subscriber's section for details... see subscriber's section for details... Full Moon Pennant to resolve in Q3-Q4 of this year
Monday August 7, 2017 - Full Moon...
Updated Sections: Recession Proof shares, Pharma-Bio shares ,
Those who still don't know and see that politicians are Sicko's who only care about themselves must check the unrest in Venezuela. The recent election was a fraud (because all candidates were pro Maduro) and a mockery and yet, POLITICIANS go on like nothing is happening in the streets. Politicians don't give SHIT about the people. Nor does the Police force and Army who receives the best possible financial and other advantages from their bosses the politicians. REMEMBER at all times that Politicians in your country are NOT DIFFERENT! Referenda and Voting have become a JOKE and Authorities and Politicians don't give about the people and the country. They never do!
|On Friday, Venezuela's Bolivar plunged, tumbling 16% to 20,142 in the black market, down almost 40% in just the past three days and down over 96% in the past year.|
Fears of Venezuela default spike. Venezuela is careening towards default later this year as billions of dollars of debt come due. Both the Venezuelan government and the state-owned oil company PDVSA have enormous debt obligations maturing soon, and there is little cash left with which to pay. Between now and the end of the year, the government and PDVSA owe $5 billion, but according to S&P Global Ratings, the government probably only has about $3 billion left in foreign exchange. A default is looking increasingly likely.
|Today's Politicians are no better than at the time of Louis XIV, Louis XVI & Marie-Antoinette, Philip le Beau ,....first they take your money, next they take your life (WAR).|
Most people who fled the USSR came over (in the USA) dirt poor; because anyone who dared leave a Communist country, even legally, was first stripped of all money and assets. The plane tickets were by far the most valuable assets immigrants had on their persons when they got on a rickety old Soviet-made jet for a flight to JFK. Therefore it it everybody's responsibility to see that part of their savings are kept OUT OF POLITICAL REACH now. Even better is to also have a SECOND PASSPORT.
Having a Second Passport doesn’t mean you think the world is coming to an end. It’s something that any rational person has, especially in light of today's obvious risks. By diversifying internationally, you can dramatically expand your freedom, and take advantage of worldwide opportunities to increase your prosperity. These strategies used to be available only to the super wealthy and to multinational corporations with access to armies of lawyers and advisors.
Today these solutions are accessible to just about anyone with the right education and the will to take action. A second passport is like a personalized insurance policy that increases your freedom, protects your current and future assets, helps increase your prosperity, ensures that you legally save tens of thousands of dollars in taxes every year.
- In Venezuela the price of Real Estate plunged 96% over the past 12 months. Soon one will be able to buy a complete street for a couple of gold coins only.
- Although there still are buyers around, it becomes obvious that the Belgian Real Estate Bubble starts to deflate.
- xxxx: net earnings increased to $33.1 million, or $0.03 per share, compared with a net loss of $25.0 million, or $0.02 per share, in Q2 2016...
- Key metals see surging prices because of electric car demand. Lithium is one of the hottest commodities in the world right now because of surging demand for batteries in electric vehicles (EVs) and for energy storage. But other metals are also on the rise, including copper, cobalt, nickel, and aluminum. Cobalt prices are up 70 percent this year, copper is up 14 percent and aluminum is up 13 percent. The gains are expected to increase in the years to come as EVs capture more market share...see subscriber's sections for selected shares.
- American shares are OVERBOUGHT and there a lot of BUY CLIMAXES visible on our charts. There is no way to tell when and at what level the BLOW OFF will end. Prices can double and triple before it happens. Two things however are sure as death and taxes: 1. at some point it will end and reverse and 2. it will catch us all by surprise and there will be no time to leave the sinking ship.
- I am not superstitious, but the next full moon is August 7, 2017 and there is a correlation with the price of gold. see gold objectives for more
Friday August 4, 2017 - Libya was Clinton's war and designed to weaken the Euro, EU & Europe...so is the BREXIT!
Updated Sections: Investment Pyramid , Natural Gas shares ,
The foreign policy of the USA is based on destablisation. By pulling out the cork of Libya, the US knew it would result in a massive migration...a migration which for some good reason was and is NOT STOPPED by the EU-Governments. We'll probably never find out what happened behind the screens and in how far Merkel was bribed by Obama.
The million Dollar question is whether or not the USA will let the Dollar devaluate by another 22% or increase the political pressure on the EU and the Euro. It is widely known the cost of migrating is high. Some migrants pay up to $ 15,000 for a single ferry flight from Calais to England. Nobody seems to know where the migrants get their money from...Nobody seems to understand how it is possible that thousands of young people can simply walk in the EU without any papers...Nobody seems to notice the young men with expensive smart phones drawing huge quantities of money out of the ATM machines....VERY INTERESTING video clip.
The collapse of the financial system first walks the path of Hyperinflation, and ends on the path of Deflation. In a deflationary scenario, as soon as the losses become visible to all participants, the herd psychology changes, and participants no longer believe that central banks "are the ultimate power."...and the Banking System collapses.
|The collapse of the financial system first walks the path of Hyperinflation!|
Central banks can create currency and credit, but they can't create earnings or productive real-world wealth. These are the limiting dynamics of any debt-dependent system. The fantasy is that free money--limitless credit to corporations and Universal Basic Income to debt-serfs--will magically create earnings and expand productivity. In the real world, free credit is used to buy back stocks and indulge in other financialization trickery like Green Energy (we call it misallocation of funds) , not invest in higher productivity.
The other pathway to implosion of the financial system is to print currency so that debtors have enough money to service their debts. Creating new free money to re-set all the unpayable debt destroys the purchasing power of the currency: it is an implosion that is little different than the deflationary implosion. The inflationary pathway results in the destruction of the currency, impoverishing everyone holding the currency.
|Only those holding Physical Gold & Silver out of Political Reach in their own safety box will financially survive the coming reset...Goldonomic knows how and where to keep yours!
While the idea of debt jubilee is appealing to everyone who doesn't own debt-based assets (mortgages, auto loans, student loans,etc.), it is anathema to those who do own most of the debt-based assets--who just happen to be the wealthy and powerful who run our pay-to-play "democracy."[Real Estate also is a debt-based asset]
|If history is any guide, the wealthy and powerful who run our pay-to-play "democracy" will never relinquish their wealth. Only a financial collapse can re-set the system.|
The financial implosion triggers social and political upheavals.Recall that one person's debt is another entity's asset. When debt is blown off in either a deflationary or inflationary implosion, all the "wealth" represented by debt is also blown off. [during the Weimar revolution one could buy a whole street with some gold coins]
The happenings in Argentina and Venezuela are an excellent guideline for what is going to happen in the near future in the Western World. Rencently Argentina issued billions of dollars worth of bonds with a 100-year maturity. Bear in mind that Argentina defaulted at least five times on its debt in the previous 100 years. Those who buy these bonds are fools.
- Dow Tops 22,000 As Dollar Drops To 27-Month Lows - Get OUT of domestic xxxxxx shares and into domestic xxxxxx shares NOW!...[xxxx and xxxx shares also are good]
- Crypto-currencies, Bitcoin and the Dollar: Over 90% of all US dollars in circulation, in fact, are already in digital form. People can create their own bitcoin, whereas they can't create their own dollars. . . To me, the idea that people can create currency and have it accepted as legal tender makes no sense.
- xxxx profits beat expectations. xxxx reported second quarter earnings today, posting a $684 profit. Those figures beat expectations.
- Canadian and Toronto real estate house market is imploding. And a 2nd real estate top is in the make for the USA.
- APPLE is a SHORT. Price is over-extended and the co owns bn $515 Treasuries. Better SELL the stock before the price implodes!
- When the Stock Markets continue to break new record after new record one can be sure that Hyperinflation will soon be a reality.
Thursday August 3, 2017 - Once you are a permanent resident in Panama you can live in almost any other country in the world and keep the advantages!
Updated Sections: Oil Shares,
Goldonomic has been warning for a BOND market bubble since 2011...Greenspan now also is! Reality is that the BOND market has been TOPPING out since 2012 or about 5 years. Technically speaking the Topping has to be considered as a DISTRIBUTION. The bigger the distribution zone (5 years), the stronger action we expect once the new trends sets in. Therefore we expect to see very high interest rates over the coming years.
Central bank balance sheets are at levels that were previously unimaginable and nobody knows what the medium to long-term consequences of that are going to be. Generally speaking central banks either tightening too much, or too quickly, is one of the leading causes of crashes, so there is an increased risk of trouble for the simple reason that we are in unchartered monetary territory.
|The ECB bought Portuguese Government bonds with a 9,999 year maturity!?|
By any measure, real long-term interest rates are much too low and therefore unsustainable, the former Federal Reserve chairman, 91, said in an interview. When they move higher they are likely to move reasonably fast. We are experiencing a bubble in bond prices. This is not discounted in the marketplace.
Some laws of mother nature can't be broken and if central banks create money out of thin air, nothing by creating more debt, like they do now, it should be WORTHLESS. We are living in the greatest debt bubble in the history of the world. In 1980, total government and personal debt in the United States was just over the 3 trillion dollar mark, but today it has surpassed 41 trillion dollars. That means that it has increased by almost 14 times since Ronald Reagan was first elected president. There are no words to describe how completely and utterly insane this is. The Western World is committing suicide, and yet most Americans and Europeans don't even understand what is happening.
|A currency created at no cost, is worth NOTHING.|
Once the RIG breaks. It breaks...so don't expect a lot of warning signs...because they rigged the markets with derivatives. If they loose the rig, the loss of the derivatives is massive. Interest rates will go up like we have never seen in the past. Cash may go to a premium...because physical cash will become scarce...but immediately there after, gold and silver will be remonetized.
This time when the system goes there is no longer a white knight to save the system...expect the standard of living to go down by 50%. Expect the new (digital!?) currency to have maybe 10% of the value of the old currency...only gold and silver will be good. Real Estate will also strongly DEFLATE because it is an asset which has been heavily borrowed against...because it is a high order capital good!
- Just like in the 1920's Stock investors are rejoicing about stock markets making new highs in many countries, totally oblivious of the risks or the reasons. It seems that this is an unstoppable rally in a "new normal" market paradigm. No major increase is expected in the inflation rate or the historically low interest rates. The present rally has lasted 8 years since the 2009 low. There is virtually no fear in markets so investors see no reason why this favorable climate would not continue for another 8 years at least. It is simply impossible to forecast as to WHEN this MADNESS will stop and Stock Markets will crash....but when it does, it will take no prisoners!
- The available INVESTMENT instruments and HOW to keep your savings SAFE (out of political reach) are extremely LIMITED. Goldonomic knows HOW and WHERE...inquire.
- Tesoro (TSO) and Western Refining is now Andeavor!
- The Dow just hit 22,000 for the first time ever. In fact, it’s surged over 4,000 points in the last six months alone. Remember a TOP most of the time comes with a BUY CLIMAX...and August to October are DANGEROUS months...Certainly because the spike is not confirmed by the Dow Transportation and other indexes. De Transportation-dow is actually LOWER...
- xxx SHARES are OVERBOUGHT. GET OUT of xxxxx xxxx shares and into xxx-Americans: European, China, Canadian.....
Wednesday August 2, 2017 - Price of Real Estate is NOT depending upon the level of interest rates as many believe.
Updated Sections: US-Dollar ,
Talk is cheap: whenever anything else fails or whenever it becomes impossible to use other instruments, authorities use TALK...This indicates the end is near......and Janet may through her oracle talk well have worked the Dollar. A higher dollar is important for controlling the import/exports. A lower Dollar will push the US-cooked inflation figures further up...but technically speaking, a LOWER Dollar we shall see!
But I think there is an enormous appetite out in the country to get a different perspective than what you have from the media day in and day out, so I say the fed is out of control. Its balance sheet has exploded. It's printing money like never before. It's buying Stocks, it's rigging Interest Rates, it's rigging Energy prices, it's rigging Gold and Silver...What we don't know is WHEN the rigging will stop working.
Interest rates topped out in 1981 under Volcker together with GOLD and Silver. We had a BEAR MARKET for interest rates and a BULL MARKET for Bonds for the last 36 years....and we recently hit the NOMINAL ZERO LEVEL and the NEGATIVE REAL LEVEL. Real interest rates are the Nominal rates less the Inflation rate (even with cooked inflation rates, we end up in the red).
As a result of Money Printing and Communicating Fiancial Vessels both the Stock Markets and Bonds have been rising during almost 36 year. The million Dollar question is whether or not this trend will be able to continue without a CORRECTION and WHEN and WHY the correction will happen. Having said this, if Central Banks adapt a 100% DIGITAL MONEY SYSTEM it will be even easier to rig the system.
|Interest rates spiked in 1981||Since the 1960's investing in Stocks has been very rewarding||Stock markets keep rising because of the creation of more money, lower interest rates and Central Banks buying STOCKS...|
The DANGER and the PROBLEM we have is that once the Central Banks stop printing money, the Stock Markets and the Financial System will crash...because there are NO BUYERS in the market which can absorb the majestic quantity of equities. Hence they have no alternate but to keep printing money and fooling the people & investors until we have HYPERINFLATION and the system collapses under a Civil War/Revolution. And this is exactly what will happen. The question is not a question of buying/selling EQUITIES but one of keeping your savings safe out of political reach....for over the coming years, the Governments increasingly will come after your savings....
- Why does the Swiss remain so weak? The banking system is interconnected and very weak, "Look at what happened when the Swiss dropped their peg to the euro. That basically has tanked the Austrian banking system. The Austrian banking system is on the verge of collapse because they lent in Swiss Francs.
- If the xxxx-xxxx breaks down the present support level of .93 the down Target is . 72 or 22.50% lower.
- If you have xxxx holdings, better is to convert these into other currencies or park the funds by buying xxxxx and xxxxxx.
see subscriber's section for charts...
Tuesday August 1st, 2017 - Shit happens if you are a politician in Venezuela: what goes around, comes around...!
Shit happens if you are a politician in Venezuela...it always does when the money of the others has been spend, even if you try to sell the system as a democracy! To be continued in Socialist (they call it democracy) Europe...when it does happen, expect the same scenario.
The country’s fate is largely tied up in the bond market, where yields on Venezuelan bonds recently soared to 36% as Maduro renewed his calls to rewrite the Constitution. With the US threatening sanctions, investors are worried that the situation could reach a crisis point by Christmas.
Regardless of what happens to the Maduro regime, the country’s citizens are already living in hyperinflationary hell. As we recently reported, Venezuelans are paying 1000x more for dollars than they were in 2010. The collapse in social services like police has created lawlessness reminiscent of the Mad Max film series, where members of the public routinely lynch suspected thieves, and gangs of bikers waylay merchants carrying commodities to market.
The country’s economy is in free-fall: By the end of this year, it will have shrunk by 32 % compared to where it was at the end of 2013, according to International Monetary Fund. Also by the end of this year, the government is on the hook to pay back more than $5 billion in debt - including bonds owed by the state-owned oil company, Petróleos de Venezuela S.A., or PdVSA - plus billions more in interest. As of this week, Venezuela's international reserves stood at less than $10 billion.
High time to reshuffle your savings if you haven't done so yet.
- Some major trends are due to change and/or are already changing and this has been a theme in these reports for the past few weeks. First it was the euro that reversed trend as the US dollar showed signs of all round weakness as reflected in the dollar index. Then gold in dollars and in euro held at or close to support and showed signs of recovery and is definitely bottoming out.
- The Bond market seems to be topping out and we may have seen the lowest interest rates of the 21st century and more Real Estate markets are deflating: Canada, Belgium,....
- Finally, after a series of new all time highs, the DJIA reached to the top of its long term bull channel which resistance has held, despite a new all time high on Wednesday that was still below resistance at the top of the rising channel.
see the subscriber's sections for details...