31
May
2012

NEWS MAY 2012 (public)

If you are not keeping your savings out of political reach, you haven't finished your home work!

Thursday May 31, 2012 - The situation is unprecedented.  The world has never, ever been in a condition like this!


"The only issue I have is they are trying to create the idea that gold is a risk asset. So when the risk-off trade is on and they are selling commodities and stocks, gold is dumped in with them. But there is no doubt the safest asset in the world, by a huge margin, is gold."

Monetary metals investors should understand that, when you own gold you're fighting every central bank in the world. It's them or humanity, slavery or freedom. John Embry of Sprott Asset Management is really getting around today, elaborating for King World News on the "massive manipulation and interference" in the gold market. "They knock gold down when it obviously should be going higher," Embry says, echoing GATA's long-running complaint about the counter-intuitive moves in the gold price.

Indeed, if the Northern Hemisphere was destroyed in a nuclear war, the Federal Reserve, JPMorganChase, and HSBC would get some brokers to Sydney, Rio de Janeiro, and Johannesburg to sell gold futures massively and drive the price down by at least 5 percent. Kitco market analyst Jon Nadler would crawl out from the ruble and opine to the cockroaches that the gold price had fallen because so many gold buyers had been killed, as he always had predicted would happen. CPM Group's Jeff Christian would telephone New Zealand not to worry because he was flying down with reams of gold-colored paper that would work just as well in Wellington as it did in New York as long as nobody asked what was behind it. And the World Gold Council would console itself with whatever high-fashion models could be found wearing gold nose rings in French Polynesia. But with London and New York razed, at least we'd be spared more contrived rationalizations about the strange market action from the Financial Times and Wall Street Journal.

November 2012 there are Presidential Elections in the USA and Obama and his Goldman Sachs gang intend to be re-elected. Earlier this year they stopped the rising price of gas and crude oil (there traditionally is a top during the summer) as Republican opponents used it as an argument for not voting for the Democrats.  At the same time President Obama and Van Rompuy must have made an agreement about the Euro-Dollar exchange rate and the stability of the Euro-zone. Little doubt that a Grexit will have a severe impact on European but also on the 5 largest American banks (DERIVATVES or CREDIT DEFAULT SWAPS). The big advantage is that Obama has his buddies controlling the financial markets and that these Goldman Sachs CEO's are convinced they are God.

It is by principle impossible that all markets move in symphony with each other but this is what I actually see happening today. MANIPULATION only works for so long....and the longer a market is manipulated, the stronger the reaction once the price breaks loose. Assuming we have no Black Swan and "The Gods" are able to control the situation until November, I don't expect to see major moves (up and/or down) until November/December 2012. Having said this, 2013 could well bring the drama a number 13 is associated with.

fuel and tax

The bulk of the price of gas/petrol is the result of taxation. Governments can at all times bring down taxation in order to make ENERGY cheaper. Very important as cheap energy is by definition the motor of a growing economy. The taxation of energy canbe compared as the taxation of bridges during the Middle-Ages. Government has learned nothing...they keep making the same mistakes until the system collapses. This time won't be an exception.

spanish bullThe EU plans to re-introduce border controls if Greece crashes. When it does, it will catch all those who keep believing the Propaganda and have not moved their savings out of Political reach. This ain't something that will pass by without harming anybody. This gonna be a HUGE HURRICANE....that will end up in history books.

Spain about to collapse. Spain lives on the sharp of the knife. This because of the incest between Authorities and Banks...Banks are begging for help but the country is unable to finance itself!? I have always stated that Banks and Governments will down together, arm in arm like twins...and this is exactly what is happening. Banks must recapitalize but cannot without the help of their country...but the country is unable to recapitalize, nor can the EU. A vicious circle it is. We have since long passed the point where even balanced budgets were able to correct the situation...In order to avoid social uprise, they now are even manipulating the markets...But Rome is burning and soon the flames will be visible to all. After Spain comes Italy, next France, next Belgium and the Netherlands.....

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Wednesday May 30, 2012 -


Gold a stupid, worthless yellow metal!? Why is it used as a collateral by Banks and Government!? Europe’s debtors must pawn their gold for Eurobond Redemption.  Southern Europe’s debtor states must pledge their gold reserves and national treasure as collateral under a €2.3 trillion stabilisation plan gaining momentum in Germany. Sure is no government can print any Gold..more

It's no more a question of whether will shall see Capital controls but rather a question as to WHEN these will be enforced. The day it happens millions of investors will be trapped in the EU-Cage (but probably also in the SWISS cage).

Swiss government issues debt at negative interest rate as investors seek safety of franc. Last intervention amounted to $ 40 bn this time however the Swiss try to make the investor pay. GENEVA, Switzerland — Global investors are paying Switzerland to take their money as they look for safe places to park their capital. The Swiss government issued short-term debt bills worth 688.8 million francs ($716 million) Tuesday at a negative interest rate of 0.62 percent. That means investors are paying to lend money to Switzerland for three months. Luckily there are some good alternates for the Swiss (CanDollar and Aussie) ..more

Gold 64 weekMAThe dollar chart for Gold does show a dead-cross. However a similar cross also occurred in 2006 and 2008 and in both cases Gold resumed its uptrend. Any price evolution MUST been seen in a complete and often complex picture. Looking at Gold without considering Gold expressed in other major currencies is a dangerous mistake many American analysts still make. As much as Belgium and The Netherlands are two big cities, the USA is one large village. Worse is that the quality of the automobiles they make are of a poor quality. So is the quality of many financial analysts. Having said this, the alternatives to Gold are almost unexisting...unless of course you don't mind holding Fiat Paper money and Government Bonds.

Next big thing in Gold - possible purchase of 1700 Tonnes by the Banks and Central banks as regulations are changed. The Basel Committee for Bank Supervision (or BCBS) as part of the BIS are arguably the highest authority in banking supervision and it is their role to define capital requirements through the forthcoming Basel III rules. In short, they are meeting to consider making GOLD a Tier 1 asset for commercial banks with 100% weighting rather than a Tier 3 asset with just a 50% risk weighting as it does today. At the same time they are set to increase the amount of capital banks must set aside as well. A double win potentially...more

Keeping up appearances and this is as ridicule as it gets...Spanish imitate Irish Politicians by pretending Spain doesn't need to be bailed out at critical time!? Spain's Rajoy fights losing battle to stave off EU rescue Spanish premier Mariano Rajoy has given a fateful hostage to fortune. He told the nation that there will no EU rescue of Spain's banking system, even as `Black Monday' brought a further crash in bank shares and the IBEX index dropped to nine-year lows...more

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Tuesday May 29, 2012


Japanese Government hires top girl pop band to promote Treasuries. Japan has the industrialised world's worst public debt, amounting to more than twice its gross domestic product - topping hard-hit euro-zone countries including Greece, which have drawn fire from foreign investors over their fiscal management. But the yield, or interest rate, on Japan's bonds is low with more than 95pc of the national debt held by long-term, domestic investors.The yield on the benchmark 10-year bond stood at just 0.880pc on Friday, a relatively unattractive return. [this is a holdup in broad daylight - but the majority is stupid...we all know this by now, don't we!?]. No doubt any single Japanese Investor is better of investing in physical Gold...unless these girls can make them change their minds.

If you decide to step out of the Euro, the US Dollar is the worst possible option. But before you short the Euro, understand the ECB and Euro-top are fighting for their job and will rather sell their own mother than to let the union fail.

Now is the time where one can make the difference between the "Real Investor" who knows what he is doing and the Amateur who keeps focusing on the losses instead of adding to his positions: as far as the gold stocks are concerned, I consider today's levels to be extraordinarily compelling for anyone looking to build up a portfolio, or to average down an existing portfolio. The real investor understands that INCORRECT MARKET SENTIMENT in fact is an opportunity: Barrick Gold Corp. currently boasts a profit margin of over 30%, better than twice that of IBM and almost ten times that of Walmart.

Predict the timing and amplitude of an ILLOGIC EMOTIONAL market correction is an impossible task. Those who pretend they did are either lucky or liars. Predicting such a move for the Gold and Silver mine sector is even harder as the capitalization of the sector is extremely small and most investors don't understand how Goldmine operate. Example: hedging the production, the relation between the ore grade and the price of gold/silver, the relation between the Gold/Silver mine and the local Government/President. The political situation of a Gold mine is far more dangerous in Argentina than it is in any African country (even Zimbabwe).

Quantitative Easing to infinity it will be as taxpayers Now Stand Behind Derivatives Clearinghouses. J.P. Morgan's recent trading loss and the resulting Washington blather about tighter regulation have grabbed headlines. Little noticed is that on Tuesday Team Obama took its first formal steps toward putting taxpayers behind Wall Street derivatives trading—not behind banks that might . The board of J.P. Morgan Chase & Co. is expected to shake up its risk-policy committee in the wake of more than $2 billion in trading losses [which may be as large as $ 20 bn], people familiar with the matter said...more in the Wall Street Journal.

DERIVATIVES are  a mighty weapon and it is no coincidence that the price of Crude oil is containes during a Presidential Election year. Especially as Presidential candidates were focussing on the Price of Gas and at this time Government is in fact infiltrated by Goldman Sachs buddies. I guess the correction (upward) will happen AFTER November 2012 and into 2013.

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Friday May 25, 2012 - Monday is memorial day and also a bank holiday in most of Europe.


Too many investors live for  INSTANT GRATIFICATION and don't have PATIENCE!  Worse is that they keep comparing their savings to a Fiat Price and forget about the VALUE....

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Thursday May 24, 2012 -


We are living all these problems because of the CRIMINAL behavior of the central banks!..fractional reserve banking...

Months ago we advised to stay out of EU-Stock markets.  So far only Switzerland, London and North-America are barely holding on to a positive trend. It is plausible that a breakup of the Euro and even the fear and expectation of will continue to put a damper on the financial markets and even on the Gold/silver sector. Having said this for European investors it is preferable to hold on to Real non-Euro assets than to European cash, bank deposits and European treasuries. Yields continue to fall as the price of Bonds and Treasuries continue to go up....but this will end being a deadly trap.

The HUI-index (gold and silver majors) shows a stunning technical signal is about to .........................We are at an extraordinary inflexion point both for Gold and Gold shares: It's VALUE that matters...not price !

grexitA Grexit scenario or a test case for the EU-breakup: Central banks will do all within their power to have “an organized breakup” of the Euro and Euro-zone. Greece will be the 1st country to leave and a test case. After Greece, Spain, Portugal, Italy and France will follow (FPIGS). Belgium and the Netherlands will probably come last.  Note that a ROLL-OVER of DEBT won’t trigger the Credit Default Swaps (bankruptcy would). In all cases, the moon will not disappear like the EU-officials pretend it will if Greece leaves the Euro.

  1. We have a Bank holiday probably shortly after the June elections.
  2. The bulk of the Greek debt is rolled over (no bankruptcy!) and is negotiated as a Euro debt (Eurobond?) for a period of for example 150 years…or longer. In order to make the debt attractive to the public, Authorities could decide to link it to Gold (such often happened in the past).
  3. The New Drachma is introduced with 40%-50% devaluation versus the Euro.
  4. Like it was the case in Argentina, all Euro deposits of Greek citizens are used to reduce the debt. Even Euro-deposits of Greek citizens abroad are used to pay off the foreign debt. This would be done by simply converting the holdings of Greek citizens into New Drachma’s.
  5. Taxation of live important imports is slammed. Tax on Gas is slammed by 50%. The old taxation system is replaced by a FLAT CONSUMPTION TAX.
  6. Returning capital receives a privileged treatment.
  7. Government is slimmed down.
  8. Interest rates return to pre-Euro levels attracting foreign capital.
  9. The only open question is how they will cope with the Euro-bank notes.
  10. In 6 months' time Greece is recovering.

"The lesson of the story is that holders of Physical Gold/Silver will be privileged and that moving your Euro holdings out of the country where you are a resident to any other country within the Euro-zone is a no solution and a bad idea.  Greek investors who decide to sell their Gold holdings/Gold and Silver shares because of the danger of a "Greek Deleveraging" are in fact digging their own grave."

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wednesday may 23 - break up the euro and restore human dignity


The leaders of the EU-zone are in fact  morons who are afraid that those leaving the Euro-zone will do as well as Iceland and better than they are doing. Not hard to understand that after some difficulties (in Greece and Spain) TOURISM will boom, capital will return (en masse if they smash VAT and other taxes), the Real Estate market wil hopefully stabilize somewhat and the countries will flourish again. Van Rompuy and Barosso must be scared to hell that this scenario will unfold (it did in Iceland)...and people in Greece, Italy and Spain will live happy again. During the process the price of Oil may double...but cutting taxes by half will remedy...and people will work out alternates. They always do. It becomes increasingly clear those politicians are serving themselves and don't give about the people. History tells these crooks most of the time pay with their lives. After all this is the age of Aquarius...DEMOCRACY is dead in Europe, EUROBONDS are alive and this will push the EU into the Abyss. [beginning of 2012 I forecasted the introduction of eurobonds] The Greek politicians will prefer to step out of the EU-Zone rather than to see the Extremists win the upcoming elections!

Question: a Boeing belonging to U.S. Airways en route from Paris-Charles de Gaulle, France to Charlotte, SC was diverted to Bangor, Maine because of the strange behavior of a passenger. WHY does such incidents always happen during inbound flights to the USA? WHY don't such occurs on flights to any European destination?

QE to infinity it will be - you have to be blind, deaf and retarded not to see it: Christine Lagarde tells Britain to step up recovery plan. The Bank of England should cut interest rates, print more money and ease the regulatory pressure on banks as part of a radical set of measures to return Britain to recovery, the International Monetary Fund has urged. ..more

Japan's fiscal death is a warning to the West. Fitch Ratings has downgraded Japan two notches to A+, citing a surge in public debt since the Lehman crisis and the lack of any plan to restore fiscal probity. Key indicators are deteriorating on almost every front, raising concerns that the world's third largest economy is running aground after two "Lost Decades". Japan's debt has jumped by 61 percentage points of GDP since 2008, compared to eight points for the AAA bloc. Public debt is expected to reach 239pc of GDP this year, uncharted levels for a major economy in peace-time. `Net debt' – subtracting Japan's vast holdings of foreign bonds – is nearer 137pc but this is rising at an even steeper trajectory...more

Gold Anti-Trust Action Committee (GATA) Director Adrian Douglas provided one of the most powerful testimonies at the CFTC hearing, when he pointed out the enormous size of paper gold in the market (led by JP Morgan's derivative desk) and the tacit implication that physical gold allegedly held for unsuspecting clients across the globe may not exist, including gold allegedly stored in Swiss banks in alleged 'allocated' accounts. In other words, there's approximately one ounce of gold for many times more paper gold, which, if called for delivery, could force another MF Global incident anywhere in the world.

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Tuesday May 22 - Gold and silver mines continue their recovery -


greek ruinIn the old days the GREEK TEMPLES were in fact banks and Central banks. Some temples even had monsters (Minotaurs) to scare off thieves. Fortunes, gold, silver, corn, wheat and other valuable commodities were safely kept in the catacombs. Today only ruins are left...even in Greece. However what we still have is the Political Drama Act pretending nothing is wrong and tomorrow all will be solved and the sun will shine. As usual they don't stipulate they will try to solve it with your savings. I wish those who for some reason decide to stay behind, to buy more real estate, continue to trust the banks or the paper money they keep under their mattresses all the luck in the world. They surely will need it.  Actually the worst a father can do, is to push his children to buy Real Estate...

Not ONE system of Fiat Paper money has survived ever since we have History. Even metallic money systems did not survive once Politicians tampered with them. Those who dare to pretend that "this time will be different" really must be retarded.Having said this, the danger is not the Paper Money, it's the GREEDY POLITICIAN.

The potential effects of the financial and economic crisis on the banking system are drastic.  At the peak of the 2008 financial collapse Treasury Secretary Paulson said that he was within hours of shutting the banking system down! 

Rich people are sometimes very stupid...or it is not because somebody is rich that he is intelligent. Warren Buffet doesn't make an exception to the rule when he defines Gold as a stupid nonsense investment. Clear is he doesn't even understand Gold is not an investment but MONEY.  add to this that one can probably not trust the man (how does a stupid guy gets rich?) for a second and he may well try to slam gold so he can buy it cheaper (those guys have never enough).

We haven't brought it up recently but a WAR in the Middle East (Iran-Israel) is still looming and such an accident can play the role of a BLACK SWAN. Wars have the bad reputation of bringing down youth unemployment fast. After the G-8 meeting this weekend at Camp David, it was reported by Haaretz.com, “The G8 expressed “grave concern” about Iran’s nuclear program, which is suspected of being used to develop nuclear weapons, and called on Iran to “seize the opportunity” of the next round of meetings.”  The elephant not in the room remains Israel who is most fearful of the Iranian nuclear program.

Germany isolated as Latin Bloc calls the shots (QE to infinity is guaranteed) The eurozone's 'Latin Bloc' is in full revolt. The trio of French, Italian, and Spanish leaders - backed by world powers - are to push for a radical shift in Europe's economic strategy at crucial summit on Wednesday in Chicago. And YES we shall see Eurobonds in 2012: They will propose eurobonds to finance an infrastructure blitz, a sort of Marshall Plan to revive confidence even if long-term benefits will take years to feed through...more

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Monday May 21 - gold or 3 taps and a jump -


Updated sections: Gold and Silver majors, Gold and Silver juniors ,

 

vaultA simple click on the Point and Figure chart in the $-Gold section reveals the long term chart, trend channel, worst case scenario and objective (red line).

 

The bankers are working on the psychological part to stop people from investing in metals. Are you also game?

"if you're negative on gold, you must be bullish on currency, and I don't see how anyone can make that argument."

As simple as it gets...

The presence of such a huge paper gold market means that at certain times (liquidity crises) gold will sell off with all financial assets. However, a very low gold price is not in a government's interest because physical gold would leave the system and end the paper money game. So governments simply try to control gold's rise, making sure it doesn't throw off too much of a red-alert signal. For the gold price to genuinely fall, we need to see a rise in real interest rates. In a world buckling under the weight of debt at all levels, that is just not going to happen.

A simple click on the Point and Figure chart in the $-Gold section reveals the long term chart, trend channel, worst case scenario and objective (red line).

Big players are increasing their gold positions. The World Gold Council reported that record gold demand has powered China over India as the world’s top consumer of gold in the first quarter of this year. Likewise, billionaire investor George Soros tripled his gold exposure in the first quarter, while Eric Mindich’s Eton Park Capital hedge fund also bought gold for the first time. Meanwhile, John Paulson of Paulson & Co. maintained his top stake in the world’s largest gold exchange-traded fund.

Huge Japanese pension fund goes for gold: Institutional funds such as PIMCO and the Teacher Retirement System of Texas also are turning to gold. Ditto the world’s second-biggest pension market: Japan. “Okayama Metal & Machinery has become the first Japanese pension fund to make public purchases of gold, in a sign of dwindling faith in paper currencies,” the Financial Times reported.

Many Gold and silver candle charts show interesting patterns which will dictate the near future.  Illogic is to see stocks where the fundamentals improve go down...but this happens all the time and creates the life time opportunities for the intelligent investor.

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Thursday-Friday may 17-18 -  most European financial centers will be closed until Monday


money suitcaseUpdated sections: Yen and ¥-gold (interesting), Swiss and CHF-gold , Canada dollar and Can-gold, Euro and €-gold , Aussie and Aussie-Gold , US-Dollar , ZAR and SA Rand-gold , £ and £-Gold , Rupee-Gold , Renminbi Gold (triple bottom?), Swedish Krona and gold , 

Gold or three taps and a jump or a 3rd bottom we have! Gold and silver mines have for a 'dark reason' been depressed since September of 2011. However during the past months as weak hands sold out their positions, dividends and earnings kept improving....today the market violently shifts direction. Gold and Silver shares are up between 5% and 15%. Those who "Sold in May and before" will bite their nails. This also applies to those who have been incorrectly predicting the end of the 10 year bull market for COMMODITIES and ENERGY...more. Shit happens if you don't check what is happening in the East and if you try to cure debt with debt!

Just to give you some idea of the action:  Miranda Gold +14% ; McEwen +12% ; Great Panther +11% ; Pretium + 9% ; Gryphon +10% ; AuRico Gold +8% ; Banro +9% ; Fortuna Silver +8% ;..details and more about which shares to acquire in our shopping baskets. Be advised that during the heath of the bull run certain shares tend to rise by 20% to 30% during a single trading day.

The faster and the more capital leaves the EU-Zone the quicker I expect to see capital controls!  whatever needs to be done, don't hesitate, don't be greedy, DO IT ASAP!!!! Don't be late and sorrow. The next days and weeks are going to be wild,  the last wild card has to do with Europe blowing up. Having said this it is smart to be Bullish and to hold certain positions (see shoping baskets) over the Week-end ! If a Malawi scenario occurs because the Euro falls apart, those who are holding on to cash, bonds and EU-shares can loose up to 50% in 24 hours' time.

The Euro is oversold and the American Dollar overbought and running into resistance - Gold expressed in most fiat currencies has fallen back on the bottom of the uptrend channel and daily, weekly and monthly indicators are strongly OVERSOLD - American 30 year bonds sell at an all time high (extremely dangerous) -

The Swedish Krona has been extremely weak and we have a STOP LOSS versus the US-Dollar and the Euro. Gold expressed in Krona did of course pretty well.

Erratum:  Last Tuesday We have incorrectly published that the IMF is to buy $ 2.3 bn Gold. Such was an incorrect statement made by Zerohedge via Bloomberg and Commodity online. Truth is the IMF never made such a statement. (thks Vince)

We are on the edge of a crisis in the bond markets. It is already happening in Europe and will be coming to the USA soon.

The Central Banks are destroying the capital market by pegging and manipulating the price of money and debt capital. Interest rates signal nothing anymore because they are zero. The yield curve signals nothing anymore because it is totally manipulated. Capital markets are at the heart of capitalism and they are not working. Savers are being crushed when we desperately need savings. The federal government is borrowing when it is broke. I expect the bond markets to continue to break down in sequence and the day is close where the FREE MONEY will be gone. Any  6% signals the END. When the bond market will dislocate it will spread over the other asset markets...but first there will be a monetization of the debt (money printing) and a hyperinflation...the money is already in place...we just need to wait upon the acceleration of the VELOCITY. Such can happen any time now.

The mainstream (corporate) media is nothing less than the unofficial accomplice of the banking crime syndicate which is running/ruining our markets and economies. Nowhere is this despicable relationship more apparent than in its deliberate efforts to grossly misinform investors on the critical subject of risk. Jeff Nielson

 

bankiaSpain has been moved to deny reports of deposit withdrawals from Bankia, the part nationalised savings bank, after its shares tumbled as much as 29 per cent on Thursday.Following reports in the Spanish media that €1bn had been taken out by clients of Bankia, Spain’s second-largest lender by domestic depositors, in the week since it was nationalised, Fernando Jiménez Latorre, secretary of state for the economy, denied the bank was losing client money...more [BANKS are bankrupt and will rot to the core hopefully your money will be safe before it happens to your bank!]

Don't even hope Real Estate will make you happy. Buy a Home in the USA for Less Than a Car (2007 the buyer of a home got a car for free....). Nationwide, many foreclosures are selling for less than used cars. Right now, you can buy a Las Vegas condo for $30,000 or a Tampa townhouse for $45,000. People like you are doing it every day.

 

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Wednesday May 16, 2012 - the idiots who wrote the chart for the Euro-zone did not foresee an exit procedure!? -


GOLD candle1There are more and more indications that we may have #3 bottom for Gold. Especially bullish is the fact that the Gold bears are exuberant these days. Their mood is epitomized by a recent Bloomberg headline:  'Gold Erases Year's Gain as Europe Concern Boosts Dollar' - which was then dutifully parroted by thousands of mainstream drones. The implication was clear: gold was on its way down and the dollar is on its way 'up', so everyone should sell their gold. Out of experience I know the MAINSTREAM MEDIA are EXCELLENT FORECASTERS of bottoms and tops. In this case they have probably nailed the bottom!

Van Rompuy and Barosso will rather sell their mothers than let Greece exit the Euro-zone. My feeling is that the real danger lies with Spain and not with Greece. ...unless off course we have a civil WAR. War always changes all the rules...more

Oil prices to double by 2022, IMF paper warns. Correct, if they express the price of oil in Gold. Expressed in Fiat paper money it will probably be al lot more. Technically speaking the oil price still sits in a secular bull trend...read here

I warned you to stay away from European stock markets (except Switzerland and Norway) .Each day I am warning you to stay out of Treasuries, bank deposits and saving accounts...one day this bubble will bust and it will NEVER REFLATE! This is as sure as death after life.

This will happen over and over until the HERD sees the Emperor has no clothes and Fiat Paper money is not worth the paper it's printed on: The JPMorgan loss can end in a remake of the 2008 Lehman Bros. deleveraging. If you cannot stand the heath in the kitchen, convert your share holdings into physical gold. But before you do, look at a long term chart (or at least at a chart which goes back to 2007) and see how todays' bottom is higher than the 2008 bottom.

How long is the fuse on your financial memory? Remember 2008? No pain, no gain.....A year after the BIG 1930 crash stocks had recovered half of the losses in only one years time. Stocks are REAL ASSETS!

GOLD 2008
Assuming you bought the 2008 top, you still doubled your paper money in 4 years time...or +25% y/y + security
HUI 2008
Assuming you bought the 2008 top you still booked 28% paper money profits plus dividends...or = + 7% y/y exl. div.

 EURO-officials may succeed in luring the inexperienced Greek politicians into their game...but when it comes to Spain, be advised they will have to run for the Bull! ..more

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Tuesday may 15, 2012 - The problems that give gold its reason to go higher are growing, not waning and Gold will trade at $ 2000 and higher once this correction is over.

AEM candle2If people begin to believe that Greece will soon exit the Euro and the Eurozone, it could ignite runs on the banks. First in Greece then quickly Spain and Italy. Would there be a rush to things like capital controls?

PLEASE be serious...the dividend for xxxxxxx goes up by 350% in two years time but the stock comes down by 60%....you must be joking!?...this stock is a STEAL. Better buy some instead of wining about the correction. Use your brains instead of your emotions.

Markets fail to understand the consequences of the elections in Greece, France and Germany. Markets HATE uncertainty this is exactly what we have today. In a nutshell, Politicians will have no alternate but to print money in order to avoid social unrest and stay in power. The very day they loose power, we shall see Extreme Right-Socialism (remember Nazi-Sozialismus!?)

Markets also fail to understand the problems JPMorgan is having. One is the extremely high naked short position on silver.. This is no ordinary event. JP Morgan is the GRAND MASTER of market manipulators....ESPECIALLY SILVER!!! There are many more problems for JPM that are going to come out over the next few weeks/months and don't forget that they are the LARGEST COUNTER PARTY on all derivative transactions with over 1 Quadrillion (the $ 70 trillion is a lie)  in notional value. When they go down they will take the rest of the world with them. This is the End Game. We are living through it. It began in March with the Greek default and it will run until the total electronic monetary system implodes. Every checking, savings, 401k, bond, etc...GONE. Almost everything that we call an "asset" today is merely an electronic entry in a grand Ponzi-like system. It is a global lie that has run it's course.This is STRIKE TWO for the multi-quadrillion dollar financial meltdown. Watch for the THIRD STRIKE to hit before the end of June. Hold on to your physical silver with both hands and keep it far away from the implosion of everything else. If you think Morgan is the only derivative problem out there you are quite wrong.

The International Monetary Fund (IMF) is planning to purchase more than $2 billion worth of gold on account of rising global risks. The IMF currently holds around 2800 tonnes of gold at various depositories “The Fund is facing increased credit risk in light of a surge in program lending in the context of the global crisis. While the Fund has a multi-layered framework for managing credit risks, including the strength of its lending policies and its preferred creditor status, there is a need to increase the Fund’s reserves in order to help mitigate the elevated credit risks”, Bloomberg quotes a report by an IMF staff while also adding that a $2.3 billion gold purchase is in the planning...more

While the buying power of fiat paper money has fallen by 96% under America’s and Europe's greatest failure (the Fed & ECB), the buying power of Gold has increased  by 700%. This equals the ‘invisible’ robbing of the Poor and Middle Class by the Central banks.

Average wages in 1959 were $5,016 or 143oz of Gold
Average wages in 1977 were $15,000 or 120oz of Gold
Average wages in 1999 were $28,970 or 104oz of Gold
Average wages in 2008 were $41,335 or 53oz of Gold

Where is the Gold of the Dutch people, the gold of the American people, the gold of the German people!? Why then is it so hard to get an answer? The German parliament, the Bundestag, is looking at the accounting of German gold reserves at the Bundesbank. Parliament's Budget Committee has requested, in opposition to the Bundesbank, a critical report by the Federal Audit Office, the newspaper Bild reports. "The decision has been unanimous," the paper quoted the Christian Social Union budget expert Herbert Frankenhauser. The newspaper report alleged "account cheating" regarding the German gold reserves...more in German.

The co-founder of Facebook is moving to Singapore and this saves him $ 600 million each year...or this signals the END of the USA...those who pretend this is unpatrictic don't know what they are talking about.

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Monday May 14, 2012 - Merkel waves the white flag to more money printing -


van rompuy

Updated sections: Gold and Silver Juniors (important) , Gold and Silver majors , 

The Euro-Zone on its way to absolutism? Not only does Europe has a non-democratic-elected President (Van Rompuy) but the President of Italy and his cabinet has been put in place without any elections and without the say of the Italian people. What will happen after the 2nd elections in Greece in June? Todays European picture increasingly ressembles the German situation of 1932....The odds are that the politicians will increasingly tend to ABSOLUTISM while the Depression will increasingly push the People in the opposite direction or Nationalism. Short term the outcome is sometimes hard to forecast. Medium term there is not doubt that the Euro-zone will break up and the Euro disappear (or best case scenario be kept by Germany). The faster the process, the less collateral damage will be done.

The economic collapse for dummies: those who think matters are better in the USA and that a recovery sits around the corner are making a terrible mistake. You ain't seeing nothing yet!

 

The JPMorgan losses are $ 2 bn but they could also be $ 7 bn..and it's all about DERIVATIVES which are coming home to roost. Extremely dangerous...especially because the HERD doesn't understand what they are. Derivatives however are able to take the savings away of millions in a FLASH CRASH...and not one banker will warn you that it is about to happen!

merkel-hollandeIt's either printing or sinking: Germany Has Waved The White Flag And Will Allow Printing And Inflation. For quite some time in this letter I have been making the case that for the eurozone to survive, the European Central Bank would have to print more money than any of us can now imagine. That the sentiment among European leaders was that they were prepared for such a move was clear – except for Germany, which is haunted by fears of a return to the days of the Weimar Republic and hyperinflation...more . Once markets understand this, they will sky rocket. Merkel has  little room to manoeuver as she also gets hammered by German Elections.

DUESSELDORF, Germany, May 13 (Reuters) - Angela Merkel's conservatives looked set for a heavy election loss in Germany's most populous state on Sunday that could give the left momentum before next year's federal election and fuel criticism of the chancellor's European austerity drive. North Rhine-Westphalia (NRW), an industrial state in western Germany with an economy and population roughly the size of the Netherlands, has a history of influencing national politics. First exit polls were due at 1600 GMT and were expected to show Hannelore Kraft of the centre-left Social Democrats (SPD) trouncing her Christian Democrat (CDU) rival Norbert Roettgen, who is Merkel's environment minister...more

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Friday May 11, 2012 -


We face the prospect of mass civil unrest, even revolution.


For Britain, collapse of the euro needn't be a disaster" - This is an interesting and topical article by Simon Wolfson for The Times (UK). Here is the opening: The currency is now more likely to fail, but immediate action will protect us. If the new President of France lives up to his rhetoric and attempts to stimulate growth through further borrowing, then the death of the euro may be closer than even the most bearish of us feared. The economics of issuing government debt to stimulate growth is a dangerous game for any country, and not just because the money is often wasted on hopelessly unproductive political projects. The risk is that markets lose faith in the state's ability to repay its debt. If this happens, then borrowing costs for the whole economy go up as investors seek a premium to cover the additional risk. At the same time, the exchange rate is likely to fall, as overseas investors sell risky assets in the overindebted state.
 
Now you might think that France, being in the euro, would be protected from the punishing judgment of the foreign exchange markets. Up to a point you would be right, but there's a catch. The effect of France's borrowing would have implications for all eurozone countries, not least Germany. For in as much as German creditworthiness supports its more profligate European partners, their profligacy undermines the financial stability of Germany and indeed all other responsible members of the club.
 
That is why northern European leaders required Spain, Italy, Portugal and Greece to stabilise their national debt. And this leads to many in the southern European states feeling (not unfairly) that austerity has been forced upon them by an over-mighty Franco-German axis.
 
How will the unemployed of Spain (a staggering 25 per cent) feel about their financial straitjacket when the French Government decides its own population cannot bear a far smaller dose of austerity? The current rise of anti-austerity parties in Greece is testament to the risk. Some countries might simply decide to abandon austerity themselves and with that we would have an implosion, the end of the euro

About Juniors: Investors are scared and have been thinking illogically for several months now. Companies that were being bought for $1.00 per share with heavy volume, just 12 months ago, are having a hard time finding bids in this market for $0.30. Volume and risk appetite have vanished. Again, this is similar to how it was in December of 2008 in that respect.

J.P. Morgan Chase JPM +0.25%& Co. has taken $2 billion in trading losses in the past six weeks and could face an additional $1 billion in second-quarter losses due to market volatility. The losses stemmed from derivatives bets gone wrong in the bank's Chief Investment Office, a part of the corporate branch of the bank that manages risk for the New York company. The Wall Street Journal reported last month that large bets being made in that office had roiled a sector of the debt markets.

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Thursday may 10, 2012 - The faster the EU-Zone breaks up the better for the damage will be smaller


scotia bank

Updated sections: World stock market indexes , $-Gold, €-Gold , Ruble Gold has been replaced by Renminbi Gold

Canada's six largest banks have spent $37.8 billion since 2008 on about 100 acquisitions at home and abroad. "We and our Canadian competitors are only able to do that because we have some flexibility as a result of our strength," says Gerald McCaughey, chief executive officer of Canadian Imperial Bank of Commerce, which bought JPMorgan Chase & Co.'s minority stake in asset management firm American Century Investments last year. "Over the longer term, this should actually help to maintain the strength of the Canadian banking system and its competitiveness." CIBC (CM) was No. 3 in Bloomberg Markets' second annual ranking of the world's strongest banks, followed by three of its Canadian rivals: Toronto-Dominion Bank (TD) (No. 4), National Bank of Canada (NA) (No. 5) and Royal Bank of Canada (No. 6), the country's largest lender. Bank of Nova Scotia ranked 18th, and Bank of Montreal was 22nd.

Is the support level on the Dow Jones and SP500 broken and has the bearish wedge been activated? If so what is the strategy...see World Stock markets section.

More negative news out of Spain where banks will rot to the core. Mr Mandy said the ECB should step in with fresh measures to contain the fallout from the Spanish crisis. "They need to do quantitative easing, in tandem with lower haircuts on sovereign collateral," he said. The crisis is now so serious that the ECB can no longer keep shuffling the risk off onto banks, a policy with toxic side-effects, he said. There is no sign yet that the ECB is willing to play such a role. Bundesbank chief Jens Weidmann said this week that "monetary policy is not a panacea", suggesting that the bank had done all it can. Spain faces multiple shocks at once. The country is tightening fiscal policy drastically in the midst of recession, with unemployment already at 24.4pc. The risk is a repeat of the self-defeating spiral already seen in Greece, where cuts began earlier. "When the private sector is deleveraging, austerity only serves to worsen public finances, with tax revenues falling even faster than public spending," said Karen Guinand from Lombard Odier...more

Don't expect JPMorgan to make an announcement about Gold before it actually happens..and the alternate to Real Assets is Worthless Fiat Money! Ever played chess? If you don't make your home work, keep reading articles of inexperienced people chasing Fiat money profits you will KEEP LOOSING MONEY. Be advised this won't be a walk through the park and the storm we had is just a beginning!

Insofar as the price of gold is an international political decision as much as a market decision, we particularly do not know when crucial political decisions affecting the gold price will be made. But they have been made before, they will be made again, and we are seeing now so many developments that correspond to the developments immediately preceding the last great revaluations of gold, in 1968 and 1971.

But we do know from history that the biggest circumstances with gold, and thus gold's valuation, tend to change overnight, when all is revealed suddenly. The central bankers won't be calling us or you about this a day or two ahead of time. They'll be calling their agents at JPMorgan Chase and HSBC. All we can do is strive to hasten the day of change. And such days do happen, and have happened in times much like the ones we are experiencing now.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Sprott Asset Management's John Embry today tells King World News that the counter intuitive drubbing of the monetary metals is an indication of the desperate circumstances of fiat money and its managers. He suspects that it presages another 100-percent-up year for the mining shares.

golden apple treeWe all know MAQ-computers are excellent. Would you sell yours if they go on SALE and the price is lowered by 50% or would you grasp the opportunity to buy an new one? The trick of Wise investing is to buy the right sectors and the right shares when there is blood in the streets (like we have now).  The Apple share is another story and even Apple trees don't grow all the way into heaven. Don't expect the financial crisis to be walk through the park while you listen to the birds and look to the bees and butterflies. Better brace for a wild storm where anything can be possible. Certain is that Fiat Paper Money will get hammered and will at some point disappear in some way or another and REAL ASSETS and PHYSICAL GOLD will survive. Therefore it is utmost important to keep 65% of your savings in physical Gold. Not only will it give you a peace of mind but it is the best and safest alternate to shares. Is it that hard to visualize the difference between a golden apple (physical gold) on your table and golden apples in the trees (mines)?

If you think it is hard for a EU citizen to open an account abroad, consider this. The American tax man gets more and more power.  May 9 (Bloomberg) -- Go away, American millionaires. That's what some of the world's largest wealth-management firms are saying ahead of Washington's implementation of the Foreign Account Tax Compliance Act, known as Fatca, which seeks to prevent tax evasion by Americans with offshore accounts. HSBC Holdings Plc, Deutsche Bank AG, Bank of Singapore Ltd. and DBS Group Holdings Ltd. all say they have turned away business. "I don't open U.S. accounts, period," said Su Shan Tan, head of private banking at Singapore-based DBS, Southeast Asia's largest lender, who described regulatory attitudes toward U.S. clients as "Draconian." The 2010 law, to be phased in starting Jan. 1, 2013, requires financial institutions based outside the U.S. to obtain and report information about income and interest payments accrued to the accounts of American clients. It means additional compliance costs for banks and fewer investment options and advisers for all U.S. citizens living abroad, which could affect their ability to generate returns. UBS, the world's biggest non-U.S. private bank according to London-based industry tracker Scorpio Partnership Ltd., said in 2008 it would discontinue offshore accounts for U.S. citizens. Bank of Singapore, the private-banking arm of Oversea- Chinese Banking Corp., ranked strongest in the world for the last two years by Bloomberg Markets magazine, has turned away millions of dollars from Americans because it doesn't want to deal with the regulatory hassle, according to Chief Executive Officer Renato de Guzman.

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Wednesday may 9, 2012 - the eu cannot work because no country will ever yield sovereignty to the ecb - are you prepared?


chinese gold

Updated sections: $-Gold ,€-Gold

Tuesday, May 8, 10:18 AM Chinese Q1 gold imports from Hong Kong surged to 135.5 MT, more than a six-fold increase Y/Y as the "uncivilized" country gets closer to displacing India as the world's top consumer. Increasing wealth is certainly a reason, but Sharps Pixley suggests the government may be boosting its own reserves.

There are people writing newsletters/financial columns who have never played football and yet they are telling people what to do with their money!? Listening to them is like going to a virgin asking for advice on sex. I have over 35 year of REAL LIFE FINANCIAL EXPERIENCE.  When a reader let me know she quit Goldonomic because my timing on Gold Juniors was wrong I knew  she still did not understand what it was all about. That she did not realize this is a storm and that it always yields to sit tight than to trade. By doing so she also confirmed she was still thinking in Fiat Paper Money. A huge mistake.  The same mistake is made by people hoping that a balanced budget can solve the crises. Not only will the politicians by definition never really try to balance the budget but if they did so the interest on the Debt and the rampant depression are simply making it impossible. The point of no return has been passed...it can and will only get worse before it gets better.

Got Gold? Today’s weakness as a strategic window through which to build up your gold positions. Why is gold falling amid the European Union’s uncertainty? Because gold and the euro have been trading in tandem for some time. Greece faces the hard choice of austerity — and with it, bloody chaos in the streets — or defaulting on its debt and exiting the eurozone.

If Greece leaves the Euro-zone, Spain and France will follow and the Euro will blow up! This can happen in a couple of days, weeks or months but no doubt IT WILL HAPPEN! Never forget the accident will  destroy Cash, Saving accounts, Treasuries, bank manufactured investment products, life insurances,...in only seconds time!. What happened in Malawi is an excellent example.

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Tuesday May 8, 2012 - QE to infinity is the only option for Politicians and Gold the only one for intelligent investors -


president Banda

Updated sections: Gold objectives (interesting bar chart) , Silver , Silver objectives , Gold and Silver Majors , Platinum (chart added), Gold and Silver share fundamentals (Coeur d'Alene/Great Basin Gold)

Today Gold/silver and Gold/silver mines are up by 50% in Malawi. Malawi devalues Kwacha by 48%, leading to panic-buying. Shoppers in Malawi have been scrambling to buy basic goods, fearing huge price rises after the currency was devalued by 33%. The scramble comes despite economists saying they did not expect the devaluation to immediately lead to higher prices, as many businesses were expecting the move and were already using the new exchange rate. That is how fast it can happen!..more

In the rest of the world the Gold and silver sector remains sloppy and indecisive.

Traditional Media are old fashioned and are loosing any sense with reality. Especially true for the Financial Media. In order to find a decent analysis of the consequences of the Elections in Greece and France one has to scout Internet. Traditional American Media pretend the weak US-markets are the result of the Elections in Europe. Such a statement makes no sense and exactly the opposite should happen; capital flows away of France and Greece and into the Americas. Just like in Greece the tendency in France is to the EXTREME LEFT and EXTREME RIGHT.  We all know how these stories end.

 If you have some respect for your savings GET OUT OF EUROPE before it is too late. You have to be blind not to see it is a sinking ship: The Paris stock exchange CAC 40 index dropped 1.52pc in early trading with investors nervous about the growing pressure for a eurozone economic policy switch from austerity to growth, reflected in the French and Greek election results and President Hollande’s priorities. Stocks in Italy fell 2.2pc, the main Madrid index slipped 1.76pc while a 2.02pc drop in the DAX index of leading German shares was blamed on a local election setback for Chancellor Angela Merkel. Political stalemate in Greece after the failure of any party to gain a majority saw shares on the Athens market slump 7.6pc.

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Monday may 7, 2012 - government Statistics are nothing but lies -


Following is a statement made by Mario only two months ago. These guys are liars, slime balls and worse than a crook. On the other hand the people have a rather restricted financial memory and still think that all what these slime balls pretend, is true.Those who keep listening to them will simply loose all af their savings ....and unfortunately this is no over-statement nor a joke.

Mario Draghi

ECB chief Mario Draghi says worst of euro crisis over!...

 European Central Bank President Mario Draghi said Europe was stabilising:

European Central Bank President Mario Draghi has said the worst of the eurozone crisis is over. In an interview with Germany's Bild newspaper, he said the situation in Europe was "stabilising". Mr Draghi also said that some economic data, including inflation and budget deficits, showed that Europe was doing better than the United States. But the latest surveys of purchasing managers, released on Thursday, suggest European economies could be flagging. "The worst is over, but there are still risks. The situation is stabilising," the ECB chief said in his interview with Bild.

This sunday the French will cheer and feel over happy after Hollande is elected President. I give it 6 weeks BEFORE the same people riot in the streets of Paris because they are unhappy, scared and jobless.

A landslide election we shall also see in Greece...a typical pattern of a headless Herd seeking salvation. How predictable!

 Le choix de l'Europe est le choix de la dictature

 

A landslide election we shall also see in Greece...a typical pattern of a headless Herd seeking salvation. What else to expect from people being lied to by the Authorities and the Media?!.  How predictable! Greeks head to the polls Sunday with voters set to punish the two main parties that are being held responsible for the country's dire economic straits. Such is the disillusionment with the socialist PASOK party and conservative New Democracy, which have been alternating in power for Hitlerthe last 38 years, that neither is expected to garner enough votes to form a government. Days of wrangling over forming a coalition will likely ensue, with the prospect — alarming to Greece's lenders and much of the country's population — of another round of elections if they fail. [Sunday 4:22 pm it has become a fact that the two leading political parties have been voted away and replaced by EXTREME Right and EXTREME Left] Public anger has been so high that politicians have been forced to maintain low-profile campaigns for fear of physical attacks on the streets in a country battered by business closures and hundreds of thousands of job losses.

Those who think Mussolini and Hitler came into power by accident are making a terrible mistake. Landslide elections we shall have until  a Civil War, Revolution and/of War gets rid of the sick, cancerogenous,unreliable and greedy Political furniture and extentions (administration).

Monetization of DEBT (=hyperinflation) we in fact already have...We now have to wait until the Herd also gets aware of it and Hyperinflation will start (as soon as the velocity of Money picks up). According to the European Central Bank, the Italian banking industry now holds nearly €324 billions worth of shaky bonds. The Spanish banking sector is also heavily overweight in government paper, at a new record high of €263 billion. This bond-buying spree was caused by the wild printing of euros by the ECB. Any European bank can get all the euros it wants at the low price of 1% interest for 3-year loans - and instantly convert it into its own government's bonds (Italian and Spanish 10-year bonds pay above 5.5%) yielding a 4.5 percentage point return for doing nothing. Just as in the US, private investors can no longer be counted on to purchase all the bonds that European governments would like to issue the ECB is printing the euros to buy them - and thinly disguising the process by funneling it through the banking sector. Once VELOCITY picks up it will exponentially increase prices. Price = Money quantity x Velocity

velocity apr12

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Friday May 4, 2012 - Got physical GOLD ?


swiss flagSwitzerland is out of fashion and has become an unsafe place to keep your wealth.  UBS chairman Kaspar Villiger says Switzerland must stop being a tax haven: Switzerland should no longer be a haven for tax evaders if it wants to remain a major financial centre, according to the chairman of one of the country's largest banks.

Are we about to see a remake of MF-Global? Today it is utmost important to check out through which clearing agent your Bank, Broker or financial institution is operating. Many investors suffered as the losses of MF-Global were not covered. The candle chart of Penson worldwide looks extremely bearish!

PNSN candle3

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thursday may 3, 2012 - the gold price: reds against the blues - click here to watch the match...


dead euroBy the time the crisis runs full throttle the margin on Gold, Oil and other Commodities will be 100%! CME Group Inc. (CME), the world's largest futures exchange, is raising futures margins for non-hedged positions to comply with new regulations. Members will be treated as speculators for outright positions, paying a higher margin, said the exchange, which trades everything from energy, agriculture and metals to interest rates and equity indexes. Members are now treated as hedgers rather than speculators even if they have a speculative position. The change is effective May 7, it said in a statement. [According to politicans the financial markets are not there to serve the economy but to destroy it!?]

The argument that Gold/silver mines are weak because they use the stock markets to finance their activity is an extremely weak one and testifies that one doesn't understand the mechanism of the financial markets. As a matter of fact the very basic function of the stock markets is to find capital to run and to expand a company without the use of Bank Credit.

You are either a contrarian or a victim. I'm afraid that a lot of good people are about to become victims just at the moment that they should be taking advantage of opportunities. I've been in the business now 35 years, and I have seen these periods several times. Today is even worse than in the past as in those days we did not have the Quadrillion derivatives and the Banks/Financial system was not about to slide into the Abyss. Add to this the fact that the present deleveraging is happening in the DARK EU where contrary to the USA it is a lot easier to conduct business out of sight of the Media attention. Whatever is said and happens, this is no time to jump out of the frying pan into the fire as an accident can happen at any time.  Whatever is happening the Mainstream Media don't know what is happening and contradict themselves most of the time and such makes it even harder for the Investor. Such is especially applicable for those who are in their 30-ties and 40-ties and are still chasing Fiat Paper money. The summer is probably going to be a "sell in May and go away" type summer. I have to say my gut feeling, for whatever it's worth is in harmony with that, but it could go any number of other ways. There could be black-swan events that send gold screeching up. All bets are off at that point...last but not least, don't forget the full moon at a time where the moonlight will be 30% to 40% stronger than normally is the case. NOTHING has changed and the situation keeps deteriorating.

And throughout history when governments debase the currency, you protect yourself by owning real assets, whether it’s Gold, Silver, stocks or rice, or whatever it happens to be. As long as it is a Real Asset.

Ron Paul knows and understands. - Our central bankers are intellectually bankrupt, banks will rot to the core and QE to infinity we shall have - therefore as we cannot time when the hyperinflation will start anything which happens between now and hyperinflation becomes irrelevant.

The financial crisis has fully exposed the intellectual bankruptcy of the world’s central bankers.

Why? Central bankers neglect the fact that interest rates are prices. Manipulating those prices through credit expansion or contraction has real and deleterious effects on the economy. Yet while socialism and centralised economic planning have largely been rejected by free-market economists, the myth persists that central banks are a necessary component of market economies.

These economists understand that having wages or commodity prices established by government fiat would cause shortages, misallocations of capital and hardship. Yet they accept at face value the notion that central banks must determine not only the supply of one particular commodity – money – but also the cost of that commodity via the setting of interest rates.

Printing unlimited amounts of money does not lead to unlimited prosperity. This is readily apparent from observing the Fed’s monetary policy over the past two decades. It has pumped trillions of dollars into the economy, providing money to banks with the hope that this new money will spur lending and, in turn, consumption. These interventions are intended to raise stock prices, lower borrowing costs for companies and individuals, and maintain high housing prices.

But like their predecessors in the 1930s, today’s Fed governors behave as if the height of the credit bubble is the status quo to which we need to return. This confuses money with wealth, and reflects the idea that prosperity stems from high asset prices and large amounts of money and credit...more

France faces 40pc house price slump. France faces a property slump of Anglo-Saxon proportions as the frothiest boom in French history finally tips over, threatening the country with an economic shock just as austerity hits. "It is a gigantic bubble, all the more dangerous as it is spread across France," said Pierre Sabatier, from the consultancy PrimeView. "It reached a paroxysm in the summer of 2011. There is a mix of incredulity and denial as it starts to burst but there can be little doubt that all levers propelling the market are disappearing."  ..more

Are they out of their mind or black mailed!? UBS chairman Kaspar Villiger says Switzerland must stop being a tax haven. Switzerland should no longer be a haven for tax evaders if it wants to remain a major financial centre, according to the chairman of one of the country's largest banks...more

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Wednesday May 2, 2012 - legal theft and your assets they will confiscate !


hugh hendry

Updated sections: Banks/financials, Oil shares ,Uranium shares , Recession Proof shares, Natural gas and shares,.

HUGH HENDRY: My Greatest Fear Is That Europe Will Confiscate My Assets. "The thing that I fear is confiscation. Confiscation of my assets, confiscation of my clients' assets. I fear that this thing could get out of [control]. I think we're a year away from the French fully nationalizing their banking system...You know when you show banking assets of $62 trillion? Do you know what the other side of a banking asset is? A liability.

The poor health of the banking sector amid tepid growth and concerns about the future of the monetary union, he said, could ultimately result in the nationalization of the financial sector. That's driving his unwillingness to be invested in Europe right now.

 Will the french elections take France to bankruptcy or to a Revolution? ...same remark can be made for Greece and the Netherlands. Very hard to stay polite at all when talking about these SLIME BALLS who pretend they seek the best for the people when in fact they are worse than a cheap ordinary burglar!

The savage cuts to Greece's health service budget have led to a sharp rise in HIV/Aids and malaria in the beleaguered nation, said a leading aid organisation on Thursday.

The incidence of HIV/Aids among intravenous drug users in central Athens soared by 1,250% in the first 10 months of 2011 compared with the same period the previous year, according to the head of Médecins sans Frontières Greece, while malaria is becoming endemic in the south for the first time since the rule of the colonels, which ended in the 1970s.

Reveka Papadopoulos said that following health service cuts, including heavy job losses and a 40% reduction in funding for hospitals, Greek social services were "under very severe strain, if not in a state of breakdown. What we are seeing are very clear indicators of a system that cannot cope". The heavy, horizontal and "blind" budget cuts coincided last year with a 24% increase in demand for hospital services, she said, "largely because people could simply no longer afford private healthcare. The entire system is deteriorating".

The best time to enter the Dow is after a crash. May to October is the weak price season for the Dow, and August to October is what I term, “crash season”. Wait for the Dow and its component stocks to fall hard before moving any capital from gold stocks into it. In the recession proof section we have a stock which yields 6% and belong to the group of Low Order Consumer Goods.

Note how bad the share of Credit Suisse is doing...and how good the shares of the Canadian Imperial Bank of Commerce and Scotia bank are behaving.

The music has been playing in the section of the recession proof shares: more in the closed section.

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Tuesday May 1st, 2012 - the natural rate of price appreciation for houses is zero after inflation


Diamonds1

Updated sections: $-Gold, Silver, US Dollar, Euro and €-Gold, Pond Sterling and £-Gold, Swiss and FS-Gold, Yen and ¥-Gold , Aussie and Gold, Canadian Loonie and Gold, SA-Rand and ZAR-Gold, Swedish Krona and Swedish Krona Gold, Rupee-Gold (breakout!), World indexes,Gold and Silver Majors, Gold and Silver Juniors (a perfect candy store).

Botswana reaps rewards of De Beers move: The move of the De Beers Diamond Trading Company from London to Gaborone in Botswana is one of the biggest ever transfers of economic activity in the history of Africa. The transfer started in the 1990’s and is no surprise for those knowing De Beers, Botswana and the extra-ordinary GDP growth over the past years.

JSE firm, buoyed by gold stocks The JSE ended the day and week on a firmer footing, buoyed mainly by gold stocks, amid positive global investor sentiment. Most people forget the Johannesburg Stock exchange has been one of the BEST PERFORMING over the past couple of years. South-Africa has during the 1990's proved it could live under the sanctions and produce locally better and cheaper products than those manufactured abroad.

We did have a bottom for natural gas (up 5% today) and a bottom for related stocks.  Such is happening at a time where the price of Crude Oil is slowly but surely resuming its ascent (contrary to what the talking heads pretend). Remember this is the ideal time to buy Oil related shares (oil shares are increasingly becoming Natural Gas shares).

Gold and Silver are confirming their bottom and so are the shares:  Great Panther was up 8% and Fortuna Silver 7%.[don't forget to avarage down the cost of your shares] Exactly this kind of consolidation (which is similar to the 2008 correction) shows how important it is TO FORGET about TIME (this is exactly what the Point and Figure charts do).

Alf Fields confirms our vision that Gold has bottomed: Elliott Wave Gold Update: In the article “What Happened to Gold” dated 1 March 2012, the “other possibilities” mentioned in the event of gold dropping below $1650 related firstly to the 61.8% retracement of the prior rise. The prior rise was from $1523 to $1792, so the 61.8% retracement was $1626. There was a further possibility of the retracement being 2/3 of the prior rise, also a Fibonacci relationship. That produced a figure of $1612. The first number $1626 did provide some support to the market but the absolute low was $1612.8 on 4 April 2012. This low came at the culmination of a double zig-zag correction, which adds to the validity of that low. The odds now suggest that the gold correction bottomed at $1612.8 on 4 April 2012 and that the gold market is in the early stages of a sharp upward move. Apr 28, 2012 - Alf Field

euro redHard to write a scenario about how and what the end of the EU zone will be. Either Greece/Spain will step out of the Euro-zone; either we’ll see a revolution/civil war. Don’t expect to see Spain or Greece leave the EU in free will.  Greek, Italian and Spanish leaders are probably intimidated (blackmailed) and they prefer to step down rather then to take the requested steps.  But in the end “the people” always do what the leaders don’t.  Becoming a EU-member was easy and initially rewarding but stepping out will probably request some Blood…but such is the only way those countries can survive! In all cases don’t expect the European politicians to be of any help at all. They will fight it until the bitter end and the pressure will increase as the pain/poverty grows. Advisable is to AVOID European stocks all together. Markets and shares will perform poorly until the fate of the EU is sealed.

The Euro-zone will end when the political compact becomes untenable - it seems we are drawing closer and closer to that dystopia

 In the fourth and fifth centuries (AD), for example, the Western Roman empire resorted to centrally planned labor allocation, price fixing, rapid currency devaluation, capital  controls, civil asset  forfeiture, and tax rates that were so high that the few citizens who remained welcomed the invading barbarian hordes with open arms.Most of the smart, productive Romans had already moved on to greener pastures long before. As the situation worsened, more and more people began to leave until there was a mass Exodus of over 90% of western Rome's population in its final decades.

History shows that freedom is almost always the price that societies pay to maintain the status quo and keep their rulers in power. When the system finally collapses under its own weight, though, things can go from bad to worse as the people cry out for CHANGE. The French, for example, traded an absolute monarch in Louis XVI for an absolute dictator in Robespierre. Similarly, the Russians traded the empire of 'Bloody' Tsar Nicholas II for the Red Terror of Soviet Russia.

Regulation and taxation will make the recovery of Europe extremely hard and slow. If the MENTALITY of the European doesn't change, Western Europe will probably sink in a TWO GENERATION crisis and something history calls 100 Dark Years. Countries like Canada, Uruguay, South-Africa, Botswana, Tanzania and even Angola will prosper. 

Mitt Romney or the worst that can happen to the USA. If you believe Romney he will turn the United States into Heaven the day he's elected. The man seems to have a lot of Pastor experience and seems to know how to lie to the Herd. Romney is perceived as a "slime ball" and the American youth feels absolutely no connection with the man. The good part is that, if he gets elected as president of the USA, he will act as a catalyser and propel the country into the Abyss faster than if Obama is re-elected. Personally I think there is little doubt Obama will serve a second term. He may not be perfect but he has a lot of charisma.

Ron Paul versus Paul Krugman...or today even Nobel price winners can be idiots and Inflation is not good for the economy...it is THEFT!  If the roles were reversed and the conversation was on medicine, Krugman would have likely sounded like a village idiot in the discussion.


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Friday May 11, 2012 -

We face the prospect of mass civil unrest, even revolution.

For Britain, collapse of the euro needn't be a disaster" - This is an interesting and topical article by Simon Wolfson for The Times (UK). Here is the opening: The currency is now more likely to fail, but immediate action will protect us. If the new President of France lives up to his rhetoric and attempts to stimulate growth through further borrowing, then the death of the euro may be closer than even the most bearish of us feared. The economics of issuing government debt to stimulate growth is a dangerous game for any country, and not just because the money is often wasted on hopelessly unproductive political projects. The risk is that markets lose faith in the state's ability to repay its debt. If this happens, then borrowing costs for the whole economy go up as investors seek a premium to cover the additional risk. At the same time, the exchange rate is likely to fall, as overseas investors sell risky assets in the overindebted state.
 
Now you might think that France, being in the euro, would be protected from the punishing judgment of the foreign exchange markets. Up to a point you would be right, but there's a catch. The effect of France's borrowing would have implications for all eurozone countries, not least Germany. For in as much as German creditworthiness supports its more profligate European partners, their profligacy undermines the financial stability of Germany and indeed all other responsible members of the club.
 
That is why northern European leaders required Spain, Italy, Portugal and Greece to stabilise their national debt. And this leads to many in the southern European states feeling (not unfairly) that austerity has been forced upon them by an over-mighty Franco-German axis.
 
How will the unemployed of Spain (a staggering 25 per cent) feel about their financial straitjacket when the French Government decides its own population cannot bear a far smaller dose of austerity? The current rise of anti-austerity parties in Greece is testament to the risk. Some countries might simply decide to abandon austerity themselves and with that we would have an implosion, the end of the euro.

THE 105-DAY CYCLE and the plausible end of this correction.

Today is the culmination of both the 21-day and the 105-day cycles.  Therefore, I am not surprised that the markets have been correcting in the last few days. Let me explain.

The 105-day cycle consists of five 21-day cycles. Markets tend to have a minor low at the end of each of these cycles, and a more definite low at the end of the fifth of these cycles, since this is also the culmination of the 105-day cycle.  This is where we are now.

Ron Meisels (Phases and Cycles)

About Juniors: Investors are scared and have been thinking illogically for several months now. Companies that were being bought for $1.00 per share with heavy volume, just 12 months ago, are having a hard time finding bids in this market for $0.30. Volume and risk appetite have vanished. Again, this is similar to how it was in December of 2008 in that respect.

J.P. Morgan Chase JPM +0.25%& Co. has taken $2 billion in trading losses in the past six weeks and could face an additional $1 billion in second-quarter losses due to market volatility. The losses stemmed from derivatives bets gone wrong in the bank's Chief Investment Office, a part of the corporate branch of the bank that manages risk for the New York company. The Wall Street Journal reported last month that large bets being made in that office had roiled a sector of the debt markets.

Categories: News

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