Saturday July 31, 2010
- Inflation and Hyperinflation policy is only
possible with Deflation propaganda...and this is exactly what is
time more Quantitative Easing (money) is requested to lift the economy
out of the recession.
In the end the impact on the economy of the so created money out of thin
air becomes 'Negative' and the forthcoming depression is a lot worse
than had it be in the 1st place if no interference/manipulation of the
economy would have happened. The remaining question is to find out
whether at that point the Stock Markets will come down like they did
during the Great Depression or whether they will hold/go up in nominal
terms as a result of Quantitative Easing (Zimbabwe effect). In each case
it will probably happen over night (like we saw in 1989 in the USSR) and
investors will have no time to readjust their savings.
What the recession will not kill, the legal system will.
Structured products (Tak 21, Tak 23), CDO's, Credit
Default Swaps and a bunch of other unregulated and uncontrolled
financial products were created by the Banksters with only one goal: not
to serve the customer!
Having said this, not only the Bank is at fault for selling crappy
financial products but also the Investor which has been BELIEVING the
fairy tales "The Bank" sold him: any investment where there is no or
zero risk but nice rewards always is a dangerous investment.
Yesterday 3 banks were closed in the USA:
Coastal Community Bank, Panama City, FL
Bayside Savings Bank, Port Saint Joe, FL,
Northwest Bank & Trust, Acworth, GA
Friday July 30, 2010 -
Death of Paper Money is imminent. Hyperinflation will come like a thief
in one night.! It is difficult to write a scenario of
how it all will unfold, but there is no doubt it will happen!.. And
off course...do you REALLY think the Authorities and the Bankers will
confess and tell you the money they are printing will be worth ZERO in a
couple of years from now!?...
Corruption became rampant.
People were stripped of their coat and shoes at knife-point on the
street. The winners were those who
by luck or design had borrowed heavily from banks to buy hard assets,
or industrial conglomerates that had issued debentures. There was a
great transfer of wealth from saver to debtor, though the Reichstag
later passed a law linking old contracts to the gold price. Creditors
clawed back something...more
Corruption there also is with Financial Newsletters.
There are indeed few good and honest ones (most
newsletters are drowning in propaganda and marketing). Other newsletters
and financial reports are printed by financial institutions and for this
very reason they simply cannot be trusted. Most investors forget that
Good wine takes years to age and free investment advise in the end
often costs 'A LOT OF MONEY'.
Dollar has fallen back into its
secular down trend channel. Not only did we have a
reversed Head and Shoulder pattern, but also has the Dollar eased back
below its secular down trend line on the Point & Figure chart. When we
look at the complete process it very much looks like a small edition of
the 2008 deleveraging.
-Gold has thanks to slightly weaker
$-Gold and a weaker Dollar come back to an affordable
about the -Gold objectives and support level
The Bearish flag we indicated earlier on our PF charts of Gold
expressed in different currencies [
British Pound (with stop loss July 1st),
South African Rand,
CanDollar... ]did clearly indicate the spring bull run was over and
a price correction was in. At this point it also
indicates which potential size the present correction will have.
Only a week ago we clearly indicated the
Bonds showed a HUGE TECHNICAL NEGATIVE
DIVERGENCE and were a clear sell.
Remarkable is the similarity
between the 2008 deleveraging, the 2008 Dollar and Bond run and what we
had (in a lesser degree) in 2010.
Investors who shift their savings to China will be in for a bad
surprise once the Depression sets in. China is a High
Order Capital producer country and these traditionally suffer more from
a failing economy.
- Deflation can just be ruled
out...it is just impossible to see this now.
Out of thin air,
government created 2.75 dollars for every dollar that existed in the
entire country just one and a half years previous.
Thursday July 29, 2010 - Gold is the only
form of honest money which has no counterparty which will survive the
coming financial crash. Buy the dips!
We expect the volatility of Gold to increase but physical Gold must
not be sold under any circumstances...Faze I
of the actual Bull market started in 1999 and ended in 2008. We
are now running the 2nd Faze which will be followed by a 3rd
spectacular faze. During/at the end of this last faze nearly all
paper money, bonds, treasury certificates, etc. will default.
[during this 2nd faze it is possible to see $-Gold test the neckline of
the Reversed Head and Shoulders pattern or $1000-$1050. This would mean
a correction of 15% only].
If the Authorities keep doing exactly the opposite of what needs to
be done, the Western Societies will slide into a 100
year (two lost generations) depression: Europe and the USA will
fragment: the EU would fall apart and the American states would secess
from the Federal Government. During this black years unemployment could
easily rise to +35%. Social security, Medicare, private pensions and
pension funds won't be able to support the collapsing background
situation. It will be the dead of the Keynesian economics. Having said
this, even today it is hard to understand how most pension funds (which
are undercapitalized) will be able to grow enough provisions to cover
their future mathematical risks when interest rates are being
artificially kept at these low levels so that Government debt can be
refinanced at lower interest rates.
Remember to BUY the DIPS and NOT to SELL any PHYSICAL
And yes, as we expected a weaker dollar and a Gold price hovering around
and slightly below the actual levels is pushing back -Gold, CHF-Gold,
Can$-Gold, £-Gold and ¥-Gold to the bottom
of their uptrend channels.
Wednesday July 28, 2010
P = M x V
The general level of prices is function of the Total Money Supply and
the Velocity of the Money Supply.
Tuesday July 27, 2010
The stress tests in Europe were nothing but one big masquerade.
The decision to exclude sovereign debt renders the
results as spin and not reality. What many readers and investors don't
know, is that Banks but also (life) Insurance co's and pension funds are
in the legal obligation to invest most of their Mathematical reserves
into Gilded paper. By now many do know that Governments are heavily
indebted and that they are or will not be in a position to repay their
debt...if Governments repudiate on their debt, the legal reserves of the
banks, insurance co's and pension funds (the latter are already in a
precarious position) are/become worthless. Hence the only possible way
for any modern government to try to survive as long as possible is to
walk the path of Inflation and Hyperinflation.
Silver Juniors are A LOT BETTER and 1001 times safer than
Turbo's, Warrants and Options (which are uncontrolled and unregulated
instruments created by the Banks to rob the investors.
Some of the Juniors we list allowed for a profit of 50%
over a period of 3 months (such is 200% y/y...and this is only the
beginning of a HUGE MOVE! At this time we have only one junior in
our model portfolio...but it gave a DRAMATIC buy signal...Technical
patterns range from double bottoms to bullish triangles/coils...there
probably is a pattern for each investor...more
Gold and Silver mines
(you must check our
to find out how to structure your savings as each
investment instrument will have a particular function during the coming
Hyperinflationary Depression. Remember a lot can happen OVERNIGHT and
that your savings can be mortally damaged if you have not positioned
these properly!) will keep their secret if you
only look at the Point and Figures charts. Therefore we have added
candle charts...very interesting they are.
Monday July 26, 2010 - We'll keep updating
the site over the next weeks but be informed part of our staff is
told you to take physical delivery of your Gold and Silver!
The LBMA (London Bullion Market Association) has
taken the unusual step of blocking access to statistics regarding their
member bullion banks' gold and silver trading activities. There
are strong indications bullion banks are holding only one real ounce of
Gold for every forty-five ounces of Gold that they have sold.
The irony is that out there there is still a huge bunch of
wise-nose-investors which don't even believe they need to have Gold to
secure their savings.
We have a strong similarity between many of our charts:
Oil and Gas shares, Gold & Silver
Gold and Silver juniors
(US Gold is a topper and many others are wakening up), many
commodities (i.e. coffee),
natural gas and coal. All charts show
the 2008 deleveraging crash, a subsequent correction and a large handle.
The bigger the consolidation zone, the more power is accumulated and the
stronger the coming UP LEG. I don't believe in Deflation. What we have
now is the transition between the 2nd and the 3rd faze of the
Hyperinflationary depression. Deflation we shall have AFTER
is building a consolidation zone which result will
surprise many investors.
Friday July 23, 2010
We like what we see when looking at the charts of
Gold expressed in Dollar,
I particularly like what happened to
The PF chart of the 30 year Treasury
bonds remains extremely interesting.
Especially if one compares the 2008 dollar run with the earlier 2010
The candle chart of the
Euro confirms there is
no trend change against the US Dollar. As a matter of
fact the 2008 Dollar correction and the one we had this year have
SEVEN US Banks had to close down. So far this year
more than 100 US banks were closed....
SEVEN EU Banks fail stress tests. But the good news is that ALL IS
WELL MADAME LA MARQUISE...The Authorities will not
risk a Run on any Bank...and the requested amount of billions will be
Thursday July 22, 2010
stress tests of the Banks both in the USA and Europe may well have been
sold with lot's of glamour and music but the status of many banks are
tricky. Many incorrectly still believe these still
are (like the Titanic) non-sinkable but our financial system is
leveraged to an unprecedented and unsustainable level. Therefore it is
massively undercapitalized and the regulations (like the Finance act
which was signed today)
are nothing but plasters on wooden leg. It is possible that we
shall see as many broken banks as we saw during the Great Depression.
The financial industry has been allowed to publish false balance sheets
and false income statements. So far the FDIC total losses for 2010 are
$18 billion. Each time banks had to be closed it becomes clear
they all have been misrepresenting their assets by an average of +50%!
When Capital leaves a country it always take employment with it.
It is impossible to stop capital leaving a country once
the level of Taxation gets too high as it is impossible to rule out
once people start to mistrust paper money. Swiss endure safe-haven
agony from euro flight...more.
By now everybody should be aware the interest rates in the West are
artificially kept low and that from here they only can go up.
Today it was Brazil's turn to raise rates to
10.75% (more than expected)...more
South African Commercial Property takes a tumble.
Building activity in the commercial property sector registered a
substantial drop as constructors are constrained by lower demand for
space by tenants. The Real Estate problem is the result of fractional
reserve banking and the creation of money out of thin air and is not an
isolated problem. Real Estate ALL OVER THE WORLD sits in a secular
bear trend which will last until 2033.
Wednesday July 21, 2010 - Belgian National
Herd makes the market. Are you part of it?
It is those who today (They will all of a sudden reverse course and
initiate Hyperinflation) resist change because they cannot see what is
happening and prefer to BELIEVE what their leaders tell them. This
is not the time to believe but rather a time to understand.
We're in the 2nd Faze leading towards Hyperinflation.
The Money supply is increasing at a slower rate than the increase of the
prices of Low Order Capital Goods. Such happens
because people experience a shortage of real spending power (money).
This phenomenon is incorrectly called Deflation. We already see that the
Authorities prepare for even more Money Printing (quantitative easing)
which will lead us into the 3rd faze and Hyperinflation. Such can
and will probably happen over night and one of the indictors will be a
crashing Bond market. By then it will probably be too late to acquire
physical Gold and Silver. Even worse is that at that time Store
shelves will be empty in a couple of days only as the Herd decides to
exchange the worthless money for any good they can buy.
If Goldman Sachs' profits plunge 83% how bad will it be for other
An unique aspect of Banking systems is that
they cannot be rebuilt once they turn insolvent. They rot in place and
nothing can be resuscitated except for the balance sheets....more
[I believe that banking institutions are
more dangerous to our liberties than standing armies - Thomas Jefferson,
The correction of the Euro/Dollar
has come to a halt. At this point some consolidation
is needed. The Dollar index had a 38.2% Fibonacci retracement almost on
Before shouting that Capitalism isn't working one must analyze the
world we're living in and compare it with a correct definition of
Capitalism. Relevant is that today we are not living
under true free market capitalism. What we have is a controlled economy
where a group of arrogant men and women are trying to set interest rates
and manipulate the economy and financial markets. [Ron Paul correctly
calls what we have Corporatism]
The signal given by the Candle and PF charts of the HUI-index and the
Gold and Silver shares was correct. The Gold and
Silver market has probably made its Summer bottom.
People in Caracas, Venezuela have only 4 hours of electricity a day
and the city has run out of water. Karl Marx doesn't
work. It took until 1989 until the USSR and Chinese found out....At the
end of the Roman Empire there was (almost) free bread for all. The
result was that the farmers stopped working, left their farms behind and
moved to Rome...to be able to eat this Free Bread.
Tuesday July 20, 2010
Not only is there a enormous lack of knowledge about what Inflation,
Hyperinflation and Deflation is and how it is created
but there is also a lot of resistance of the general public who simply refuses
to accept reality. This is probably one of the main reasons why the
Authorities can through Propaganda keep Fiat Money and Treasuries alive.
After all most people are still convinced that what they read in
newspapers and what the Authorities tell them is true. There are
numerous examples of modern time Hyperinflations and yet most investors
act like it won't happen again and it won't happen to them in
particular. This is maybe one of the reasons why Hyperinflation sets is
so quickly once it starts.
Each time Gold consolidates BS talks of Deflation is sent to the
Media. But Quantitative Easing (the printing press) is alive more than
ever. Today the IMF
(International Monetary Funds) seeks "only" $ 250bn to boost
As usual Gold sails through the summer doldrums
but before we realize the wind of Quantitative Easing will hit the sails
again and Gold will sail to $ 1300 and $ 1450. Now is the time to buy
Silver index has eased back and is in the process of building
another bottom. There are more
bottoms than predicted and the accumulation is a lot larger than we
anticipated. The positive side of this is that once the Index breaks out
the rewards will be even bigger. It earns to be patient on condition
you're invested properly.
Readers who don't feel the need to go through the 150 pages of the
site sometimes incorrectly call us Gold merchants. We
have no particular interest in selling Gold and/or Silver. If we had we
would - for marketing reasons only- link our site to sites like Kitco
or the Bullion desk. The name Goldonomic comes from
Gold and Economics and was chosen because we aimed at explaining what
REAL BARBARIC MONEY was like. Today it happens to be Gold and Silver but
this can and will change and at some time in the future the Intelligent
Investor will exchange his accumulated Gold and Silver for another kind
of decent money or he will invest it again in other investment
instruments. By that time those who think they know better will be left
empty handed. Since 2001 and still today it earns more than ever to be a
July 8 we had a bearish signal reversal on the Euro/dollar.
The Euro has recovered against the Dollar and the news
has been kept out of the Media. A bullish sign I would say.
Monday July 19, 2010
from the Government, I'm here to help. As we move
further into the depression the budget deficit of the Government will
widen and it's debt will rise...as always the people will have to pay
for it through inflation and taxation.
Now that the
weakens, we've decided to let you know which 10 American states are most
likely to default. These are 10 states out of the 40
which are in trouble...more
When Money dies: The Nightmare of the Weimar Collapse by Adam
Fergusson has been added to our
list. Why is it for so many so difficult to
understand the Fiat Paper Money never works? It never has and it never
Saturday July 17, 2010 - We all know what
has to be done to cure the recession. Only we don't know how to get
reelected once we've done what must be done. (Jean-Claude
Juncker- president of Luxemburg)
Europeans are shouting the "End of the Euro is near" but right now the
voices of Americans "The End of the Dollar is near" are winning.
What both camps have yet to find out, is that in time
both will be right. As a matter of fact the club will be even larger
when the British, the Swiss, the Canadians, the Australians and most
Fiat Paper currencies join. Gold as over the last year UP expressed in
ALL FIAT PAPER CURRENCIES!
As usual and as expected each time Gold comes down a bit, the
Deflation criers are back in Town. Picking up a good
book may not suffice for many to UNDERSTAND a rather short definition
which has huge implications. I am not ashamed to confess that it took me
years to properly understand it. Deflation propaganda plays a huge role
and it seems extremely easy to mislead the Herd about a matter many
business people and lots of professionals fail to understand properly.
Inflation and Deflation are monetary phenomenon's and a
Hyperinflationary Depression we shall have. For those who fail to
understand, we advise to (re)read our story about
Zimbabwe...and to stop thinking that it is impossible that such can
be seen again in the Western world. There is absolutely no reason why we
will not. Unless of course we stop having Wars, Revolutions, Boom and
Busts and History becomes obsolete.... Especially as the Leaders are
doing exactly what needs to have such a depression.
Be advised the
Financials will be the leaders during weaker stock markets.
Whatever is said and written, they are rotten to the
core. A financial system based on Fractional Reserve banking and Fiat
money created out of thin air have NEVER survived and it never will.
Such simply isn't possible.
We have 6 Banks in this week's edition of Bank closures.
Three in Florida, two in South Carolina and one in
The Commodity section has been updated and we have added the three
fazes towards hyperinflation on our long term
Friday July 16, 2010
Agricultural commodities make a scary
move...but nobody seems to notice it!? [remember the
fazes we discussed earlier?]
played chess against a computer? If you did, you know
how hard it is. Playing the financial
market against artificially initiated moves is even harder.
This is exactly what is happening to the financial
markets and why they are - in the short run - being destroyed as an
indicator of value. The Financial markets used to be there TO SERVE the
economy and not to steal from it like it is the case today. The
influx of hedge fund money under the control of black box algorithms
instead of providing liquidity as they falsely claim is actually working
to undermine the integrity of our financial markets. Computers push
prices in attempts to generate price movement so that they can create
profits out of that movement based on their ability to fire off a series
of rapid fire Buy or Sell orders. This has absolutely nothing to do with
balancing the forces of supply and demand and everything to do with
separating the investing or trading public from their capital who are
the minnows swimming in this sea of unethical and unprincipled sharks
Those Guys who actually were responsible for the collapse of Fannie
and Freddie and the last Financial crisis in the 1st place wrote the 440
pages of the Financial bill which will in due time
sent what is left of the American economy to hell. Once the bill is
signed the President doesn't even has to go through Congress in order to
know who's too big to fail and who's not. He simply decides himself!?
Best case scenario we expect is a new test of the 2003 bottom.
We still don't like what we see when looking at the
charts of the
especially when looking at the charts expressed in
Money or Gold. Use better markets to
offload Common Stocks and use the dips to buy those investment
instruments which will actually protect your savings...Hyperinflation
only will stop the crash of the Stock Markets expressed in Nominal
We have updated all our
long term charts of the World indexes.
Those who still think the Chinese stock market is safe
will be surprised. Especially if you check the index expressed in Gold.
If you decide to stay into common Stocks, the German DAX (stock market)
may well be your best option. After all, they haven't forgotten the
Weimar Hyperinflation. On the charts we
have added the relationship of each index with Gold...more
This section is a school example for Head and Shoulder formations and
We don't like what goes down too fast and too much....like
we don't like what goes up too fast and too much...and this is exactly
what is happening to the
Dollar and the Euro.
I feel sorry for all the business people trying to conduct
business under these conditions! Today a good Airline company CEO is a
good commodity analyst/broken and a good Import/Export CEO must be able
to forecast the short term fluctuations of the Dollar against those
countries he's doing business with.
Thursday July 15, 2010 - Important updates
in the subscriber's section.
usual the Forex sections give us more clues about what to expect for the
Today more than ever it is important to look at the whole
picture before making any investment decisions. At this point we do have
some important changes! Also check the
African rand ,
Swiss Franc ,
Australian Dollar and
sections. The Canadian Dollar point and figure chart is providing a
clear hint as to what to expect for the
American Dollar. Having said
this, holders of Australian, Canadian Dollars and South African Rand
better follow the Forex markets closely and remember the ultimate
barbaric money is PHYSICAL GOLD and SILVER.
-Gold objectives has been updated. -Gold
£-Gold offer a similar picture.
Worst case scenario, Gold can ease back another 5%.
The charts of
Stock Market indexes expressed in barbaric Gold are also part
of the global picture. When an index like the Dow
Jones Industrial expressed in Gold is bumping against its secular down
trend something is brewing.
Those investors who since the year 2001 stayed invested in the British
Stock market not only lost 83% of their savings because of the bearish
real trend of British Stocks but also 30% because of the weak British
The Authorities, the FED, the ECB, the BIS, they all know This is a
lost cause. Only 'They'
cannot tell as this would probably result in social unrest. They will
continue to try to stimulate the economy until Hyperinflation explodes,
all trust in the financial sector and authorities disappear and we fall
into Deflation. Extra stimulus simply doesn't work!.
What it will do however, is sent
Gold and Silver to the Moon...got some?
The Real Estate sector in Spain and the USA are in a dramatic shape.
In the USA 20% tot +40% of the Mortgages are under
water. It is not hard to understand this will have a dramatic impact on
the Financial sector and the
economy. What many don't realize is that banks cannot follow up the bad
loans and also that they are not in a hurry to declare a foreclosure as
this would flood the market with Real Estate which could not be sold.
Click on the picture to find out which states has most Mortgages which
are under water.
Wednesday July 14, 2010 - Today is the
French national holiday . It remembers us of the abolition of
Dictatorship (decapitation of Louis XVI and Marie-Antoinette) and the
end of the
Assignats (the worthless fiat
paper money of the 1770's).[it was Marie-Antoinette
who said the people should eat cake if they had no bread - it was
Spanish Prime Minister Zapatero who said the people should eat Rabbit if
there is no Pork. Louis XV used to say that it would only last for his
generation and: après moi le dèluge.
So it happened]
is incorrect for the leaders of the Western World (Geithner,
Trichet,...) to blame the Chinese for their problems.
If Europe and the USA were competitive economies and
their leaders promoted and protected Business properly, there would be
no reason for Entrepreneurs to take a risk to manufacture in China. For
a risk it is! If taxation and regulation were decent, not a single
Entrepreneur would even dream of moving his manufacturing plant out of
the country. Is it not amazing
Unemployment is lowest in those countries which have the lowest
Silver remain very
strong and it more and more seems we're not going to get much lower
prices during the summer doldrums.
however can still come down a little.
Potential buyers MUST check our
The biggest advantage the
Euro has, is that it is also backed by Germany.
And that Germans experienced the Weimar Hyperinflation.
The biggest disadvantage however is that it is just like the Dollar,
Fiat Paper Money.
Eurozone crisis fund expects top rating.
This puts a bottom under
the Euro and opens again the trap under the Dollar. The
facility is ready to act....more
The manipulation of the free markets by the Authorities goes on.
The longer they keep it going, the more dramatic the
outcome will be. And disastrous it will be. Just for a minute, imagine
what will happen once the retiring Baby boomers find out there is no
funds available for their pension, that the Authorities spent all of the
money they actually paid them for their pension...At that point the
least we will see, is a revolt. Historically speaking we most of the
time have a WAR. Once all players are in place (and aren't they all in
the Middle East) such can happen over night. It is amazing to see
many people still believe there is a solution for the problem we're in
and that nothing serious will happen. If only a fraction of people would
realize what where we heading for, the Global Markets would not be what
they are today.
Take advantage of higher Stock markets to offload common stocks NOW!
Once the Hyperinflation starts, things will look
different when expressed in Nominal terms only.
In the USA each Friday about 3 to 4 banks have to close down.
In Florida the situation has become so bad that the Florida banks -
already weakened by the real estate bust are asking regulators for a
reprieve from government-ordered capital raising as they struggle to
keeps on building a technical pattern which we call a COIL.
This is done well inside the downward trend channel. At the same time
fundamentals are worsening. The true scale of UK debt is twice as much
as "they" thought (£ 2 trillion or £ 78,000
for every household in the country. These figures however don't take
into account some 'off balance items' like the cost of civil service and
town hall pensions. Putting these liabilities into the official figure
would add £ 1.13 trillion to the red figure and debt would jump from 62%
to 138% of Britain's income.
Tuesday July 13, 2010
A currency which is not market generated has no means of being and
will never survive. The latest example of such a
currency is the Euro. Nothing more than a Frankenstein it is and
it will not survive. An example of market generated money is Gold
and Silver which have been barbaric money ever since there was
some kind of economy and trading on Planet Earth...more
Oh yes, things are so much better in the USA. At least this is what
'They' want you to think. The positive reverse side
of the medal however is that in the USA there is a lot less regulation.
This means that there are less instruments to damper a crisis, that a
crisis will be deeper than in Europe...but also that the recovery will
come much faster...more
Following chart comes for those who still believe they are doing
better by chasing common stocks than paying attention to Gold and Silver
Monday July 12, 2010 - A Good Financial
advisor/analyst is an (experienced) old financial analyst.
to the music of the Financial Markets and think out of the Box.
The more experience one has, the easier to understand
what is happening the better one sees through the smoke curtains and
static sold by the Officials (a lot of times it is clear even they don't
understand what is happening...unless it's too late!). Harry Schultz
was a veteran when I was a Junior. He was an excellent and also a
funny speaker. The Authorities are again (like happened to the Gold
pool) losing control of Gold. Just like in the days of the Burning Roman
Empire they cheat, lie, maneuver...but Gold will beat them and is
already doing so, in stages...more
Buy the dips ! Subscribers know what our
short and medium term objectives for Gold
are. We adjust these each time we have more clues. If we have a
Hyperinflation, $-Gold could hit billions, and even trillions...At
a time where the Talking Heads are calling Gold a bubble (Gold climbs a
wall of worry) we have following individual projections: Maloney, Katz,
Rickards and Watson see $-Gold higher than $ 11,000 . The bunch
of advisors sees Gold between $ 5,000 and $ 10,000 and about 8 aim for $
5,000 [remember that it is NOT the price of Gold which is rising but
rather the value of paper money and Bonds sliding to ZERO and that
Treasuries because they are nothing more than an option to buy fiat
paper money are extremely dangerous!] Having said this, it really
doesn't matter how high Gold is going....what matters is that it will
preserve your savings!
Saturday July 10, 2010 - What sense does it
make to Short if your counterparty becomes insolvent?
Why are Tons of paper, words and energy spended each day to try to
explain to you how to invest? Once the turning points
are defined it basically becomes so straight foreward and the only
negative forces you have to overcome are your "Ego", "The
Emotional Static sold by ignorants" and the "Lies of the
We told you not to be too greedy when bottom fishing for Gold,
Silver, Gold and Silver mines! How many times did we
write that we have a paradigm shift, that we're heading for an
Hyperinflationary Depression and that most Investment vehicles will
strand between now and the end of the crisis! Go on with day trading,
scalping, buying ETF's, Options, Warrants,
Bank-manufactured-investment-products, Structures Products, Life
Insurances, Treasuries, Bonds,...following Hot Advices. If you're not
properly invested, you can loose it all overnight. Things are so bad
your pension is probably already gone by now....So what sense does it
make to know that Gold is expected to pullback slightly to complete
patterns if you know it will be soaring above $ 1300 before the end of
A policy towards Hyperinflation is only possible with a Deflation
propaganda. Today's DEFLATIONARY talks are partly correct and a
reflection of Faze 2 leading to
The danger is that if you start
to protect your savings for deflation now [this would mean the value of
Fiat paper money increases and the Authorities have become God] you will
probably be forced to sleep in the cold once Hyperinflation starts.
The problem is that most Financial advisors and Economists fail to
follow the red wire during a reasoning process. Such makes it
extremely difficult for the average investors to understand. This can be
compared to -for example- the fact that many believe we cannot have a
Hyperinflation because during a Depression Demand fails...Hyperinflation
however is a Monetary phenomenon! Off course, for most such is very
hard, if possible to understand. We have explained everything in the 150
pages of Goldonomic...and if you think your hard work and savings are
worth it, the least you can do is read these and ask questions if you
don't understand something. That's why we are here for! It is exactly
because of the complexity of the matter that we consciously don't want
to change the content of each subsection of the site over night. The
Economic cycle we are in also doesn't change over night.
The Real Consumer Price inflation has over the past
years been a lot different to what is sold by the Authorities! In
some countries (i.e. Belgium) they went so far to develop alternative
Inflation (Health) indexes so they could continue to window dress the
Friday July 9, 2010 - Gold is money and not
USSR and China went bankrupt because of Karl Marx.
1989 his books were burned. Today Putin wants
to abolish the Capital Gain tax. Russian and Chinese leaders understand
that if another Iron curtain has to be built, it will be to ensure the
citizens and the Capital of the West doesn't escape to Eastern Europe. As
expected German leaders are the only ones in Europe understanding that
we need to cut government expenses without increasing taxes.
The growing propaganda about this Double dip recession makes me feel
sick. Once the effect of Quantitative Easing is
wearing off, the bottom will fall out of this artificial recovery and a
Hyperinflationary Depression we shall have as soon as Governments start to
monetize their debt and Velocity picks up. The fact that Money supply is
down to 1930 levels confirms that this [see Goldonomic of last Saturday]
statement is correct.
Is VAT (value added tax) coming to America? If
'they' effectively DO this, the USA will in the end be no better than
the USSR. A pity it would be...more
We checked the charts in the
World Stock Indexes section &
Financials and still don't like what we see.
Markets are oversold and each correction MUST be
used to offload stocks. Once the hyperinflation unfolds, we think the
instruments listed in our
Investment table will offer a better
protection than common stocks.
Yesterday we had a symphony of key reversals on the candle charts of
Gold and Silver mines.
Only Gold and Silver seem to survive. Commodities
could take a hit as China and other HOCG producers start to feel the
consequences of the Depression. Hard to understand for many is that
there is a leverage effect between the LOCG countries and the HOCG
The Euro is back at $ 1,27. Compared to the static
sold during the slide only weeks ago this has almost been a silent
Only part of our Portfolio is invested in
the performance over the last days has been excellent...more
. As we expected BP has risen from the dead.
You have to be completely blind to continue to believe you can beat
Real Barbaric Money or Gold by investing in Common Stocks or the
Standard and Poors 500!
Thursday July 8, 2010 - All Forex sections
and Gold in different currencies were updated!
absolutely irresponsible to let the Bush tax cuts expire! You don't have
to be an Einstein to understand that tightening fiscal policy at this
point is the same Roosevelt did in the 1930's and that it will have
similar dramatic consequences. More taxation and more regulation
NEVER stimulates the economy, it kills it!
History is full of examples...so why don't the political leaders don't
get it? or maybe they don't want to? Having said this, there is no
reason why YOU would make the same mistakes the investors made in those
years: after a crash on the stock markets those who were invested in
Bonds (Treasuries) lost all of their savings as Governments started to
engage massively in Debt Moratoriums.
down too fast and too much. It finally reversed
course and is now sitting on the 200 day Moving Average...more
Civil service pensions run like 'unstable Ponzi scheme'.
It's absolutely not sure the 'real' money will still be
available when you're about to retire...more
Western Politicians read and apply Karl Marx. What
right do 'they' have to limit somebody's income? By doing so they chase
away the best entrepreneurs. Controlling Capital and controlling the
income of labor was done for decades and up to 1989 by the USSR and
China. They finally realized Marx's advice destroyed their economies and
burned his books. Ever since, their economies have been booming...more
The Authorities failed to address the cause of the crisis.
The only thing they do, is (try to) mop up the
consequences. By doing this they are
staging the 2nd down leg of the Hyperinflationary depression...more
Beware of correlations. Many analysts like them because it enhances
them with an intelligent Aura.
Most of the time, they only work for so long and they certainly don't
apply to Gold and Silver...except off course for the negative
Don't be greedy when bottom fishing for
Gold. Looking at the
charts of Gold and Silver is different Fiat currencies, these can't
really come down a lot more.
We've updated the charts of
Corporate bonds and don't like what we
Wednesday July 7, 2010
If you THINK about it, Gold will go up
if we have a (Hyper)Inflation but ALSO
if we have a Deflation scenario. In other words, by buying Physical Gold one
cannot make a mistake. Therefore, make sure you
follow our Investment advice and buy Gold each time it dips! SO far, if
you 'listen' to the market only an extremely small amount of Investors
have Gold. For this reason it is not difficult to imagine what Gold will
do the day the HERD realizes that Gold is the only barbaric money and
that even the ETF', warrants etc...are NOT GOLD.
Hyperinflation will start when the
Bond markets start to crash!
Gold is easing
back towards the bottom part of its bullish trend channel.
Buy the dips! $-Gold is going to $ 1300, $ 1460 and
has almost reached its support level.
Once Silver has it will be an
indication Gold has seen its very own short term bottom.
Interesting will be whether either the Dollar will continue to weaken
over the coming days or either $-Silver will continue to ease so that
-Silver ends up back in the bottom of its uptrend channel...or maybe
they both will continue to correct!?
IMF-BIS engaged in Gold swaps to about 380 Tonnes; Organized looting
of Sovereign Wealth. Just as Gordon Brown sold
England's Gold at the lowest of the market to bail out the bullion banks
in New York and the City, so the IMF and its constituent members are
selling the public stores of Gold, to support what is essentially
appears to be a crony capitalist banking fraud...more
This action will - off course - be explained in a different way by
the Authorities and the Herd will - as usual - buy it. Those in charge
are so intelligent and they won't even dream of cheating on the people.
A Gold swap or Gold lease is never a threat to the gold price!
Any investor who holds no stocks and may also be short will certainly
be bearish, otherwise he would be schizophrenic.
continues to correct and as the Mother of All necklines hasn't been
decisively broken, we could see a remake of the 2008 post-deleveraging
scenario...I don't like what I see when I look at
the Weekly and Monthly candle charts of the US dollar index. The Dollar
is today's biggest bubble. Remember
what happened in 2008?..more
Are you still holding on to Bank shares and Bonds issued by Banks &
Financials??? What we indicated May 20 for
Bank and Financial shares was accurate.
The technical signal which was given earlier was - as we expected - a
BULL TRAP...more .
to advice to stay away (except for those prepared to commit financial
suicide). Important is to check on these charts as they are also a
good indicator for what can happen for the Stock Markets in general.
are even falling in China. Standard Chartered expects a drop
in property prices of 30% in Beijng, Shanghai, Shenzen and other large
cities in China as the delayed effects of monetary tightening begin to
bite. Interest rates in the US and Europe are
artificially maintained at extremely low levels. Such is only possible
for so long and the day is close these will also start to rise...more
Yesterday the FTSE index made a bullish key reversal.
This could be expected as technical indicators were/are
strongly oversold. We've seen similar reversals/corrections in the past.
This however does not indicate the Footsie is out of the woods...more
reversals were seen for other
indexes...but have learned to pay attention to these but won't act
until out PF charts say so. Markets are way to volatile to rely on Key
Tuesday July 6, 2010 - Yesterday we went out fishing
Monday July 5, 2010 - Bank Holiday is the USA
- 4th of July was yesterday -
California's debt is a bigger risk than Kazakstan's and a bigger
worry than Greece...more
Illinois stops paying its bills, but can't stop digging hole.
After Greece and Spain the USA stands in the spotlight.
Illinois is not paying bills for absolutely essential services...more
Six months to go until the largest American tax hike in history:
there is the expiration of the 2001 and 2003 Tax Relief,
there is Obamacare and the alternative minimum tax and employer tax
Trichet (ECB) and Nouriel Roubini don't expect a new recession in the
Eurozone. It is this kind of stupid public statements
which make it so hard to see the trees. Everybody sees it coming but
some Financial Movie Star says it's not...!? Having said this, Trichet
must either be a perfect liar/propagandist or extremely stupid and there
is no doubt he will end up in history books in a way he will not like
Our PF chart for the -Gold objectives, support and resistance levels
seems to be extremely accurate and interesting...check
out our 3 scenario's...more
We have updated our Investment table...more
Only 250 years age - 1770, 1789, 1830,..: Taxation without
representation leads to the Boston Tea party, the French revolution, the
Belgian independence, ...Economic factors included
widespread famine and malnutrition due to rising bread prices, the
French national debt amounting to 2 billion livres, huge war debt, the
exacerbated national debts,...
Saturday July 3, 2010 - M3 and
hyperinflation - hyperinflationary depression. [What
is published below has been published by us years and months ago. For some
reason either people don't want to take the time to read it (do they
prefer to risk their savings?). For the clever ones who do decide to read
the correct information it is extremely difficult to understand what is
really happening. Propaganda/static makes it sometimes harder to
understand this than it is to select a Cell-phone provider!
There is a great deal of debate about the root
causes of hyperinflation. But Hyperinflation is often associated
economic depressions, wars (or aftermath) and political or social
upheavals. Those who advocate Deflation because of a decreasing M3
don't understand what inflation and deflation is all about. The money
supply (M3) is only one of three factors that determine whether we have
inflation or deflation. The other two are the velocity of money and the
real output of the economy. Due to its effects on the velocity of money,
the ebb and flow of confidence have a much greater impact on the
short-term trend of prices then changes in the money supply
have entered the 2nd Phase towards hyperinflation:
a lack of money becomes evident in the second phase of the crisis - the
financial crisis is replaced by an economic crisis, triggering massive
bankruptcies that would spread globally in a chain reaction. During the
second stage of the crisis, another large sum of capital will
"evaporate" from the market...click
here for more
Authorities cannot maintain an (hyper) inflationary
policy unless it is sugared with Deflation propaganda...like...why
would we have hyperinflation when M3 is contracting? M3 is contracting
because we have a economic depression! [By definition M3 must contract
during the 2nd phase!]
During a cycle of (Hyper)-inflationary (re)depression the
price of High Order Capital Goods keeps falling whilst
those of Low Order Consumer Goods rise strongly.
But Hyperinflation is a monetary phenomenon and not
an economic one...and M3 is contracting because of the depression.
This is something normal and is happening each time as the economy
moves towards hyperinflation.
Hyperinflation starts when the public is
unwilling to hold the money for more than the time it is needed to trade
it for something tangible to avoid further loss. A good indicator that
Hyperinflation has started will be a sudden increase in the Velocity of
Money. [ P = M x V ]. This alone can increase the general level of
prices. Even with a falling M3!
Hyperinflation is a psychological phenomenon.
It happens overnight and it is extremely difficult to forecast when it
The main cause of Hyperinflation is a massive and
rapid increase in the amount of money that is not supported by a
corresponding growth in the output of Goods and services.
Assuming there is a decrease in the output of Goods and services (like
we have now) it is still possible to see Hyperinflation when the Output
is falling faster than M3 is contracting.
We have a recession/depression (output of goods and
services is falling) and Public debt is soaring towards 100% of GDP
(gross domestic product) and has in some cases even become larger.
about to enter the 3rd Phase towards Hyperinflation:
hyperinflation mostly starts when the Bond (Treasuries) market breaks
down. It does when Authorities start to monetize their debt like
they are doing now UNDERCOVER (The ECB and the FED are already buying
Treasuries/Bonds - Is it not weird that Spain sold all Bonds in about a
day's time after a downgrade warning?) and the public is unwilling to
absorb it (the confidence is eroding). Who would be so stupid to buy 30
year Treasuries yielding a nominal 4% when real inflation takes both the
Interest and Capital away?
We all know M3 is down over the past months but few
realize the Quantity of Money is still dramatically up in the long
run...click here for more
[charts for the Euro and the British Pound money supply are similar].
Looking at the chart below one can clearly understand there is
NO WAY to mop up this excess of Money supply. It is simply to large.
Having said this, the Authorities have absolutely no intention nor the
will to mop it up. Inflation and Hyperinflation will simply erase the
excess of Government debt and this is exactly what there are going for.
Friday July 2, 2010 - This is a storm and it
will get worse. Make sure you are positioning your savings according to
our investment plan and sit tight. Don't let anybody scare you out of
fundamentally good investment vehicles: Fool me once,
shame on you. Fool me twice, shame on me. Fool me eight times, am I a
F**king idiot? - Jon Steward
weak fiat currency is a blessing for Gold and Silver mines.
Operating expenses decrease and more is paid for the
finished product. As a result the profits go up.
Gold and Silver shares are more or less as volatile as the Barbaric
metals are. But the uptrend is intact!
And yes the
is just like the Euro, the
British Pound a worthless Fiat paper currency and Treasuries
nothing more but an option to buy these worthless
This is where our PF charts come in handy...
No - it is not the price of Gold and Silver which is going up but
rather the value of Fiat paper money crashing towards it real value =
(Bank for International Settlements) Britain's
mountain of debt could leave the country powerless to launch another
rescue bid in the wake of a fresh financial crisis, the world's central
bankers warned yesterday. Remember Britain is the Canary in the mine
shaft for the rest of the World...more
$-Gold can actually
come down to $ .... and the short term Bull trend will still be
key reversal on the Candle charts was disregarded but the bearish wedge
was not!...more .Expect the Elliot
Wave technicians and Deflationist to try to sell their theories - which
we cannot buy because they are neither practical nor logical.
Yesterday saw a violent reversal of the
Euro against the dollar [1.22 to 1.25].
Here the Bullish flag has
been activated and is also doing its job...click
here to see these important charts.
National Debt soars to highest level since WWII. The spotlight starts to
focus on the American problems...more
The Los Angeles Times claims a market shift and advises to dump
the Dollar and buy the Euro. This is how fast sentiment
Pelosi being trained by the Europeans? Unemployment checks can never
create jobs. They will only
window dress unemployment...more
buy the Double Dip Propaganda.
There is absolutely NO WAY we can at this point see a recovery would
even be possible and in due time we shall have a Second down leg which
will take economic activity a lot lower...more
an important pattern on the make for the
Dow Jones Industrials and it is all
happening right on a major trendline...more
Add to this a Cross of Death
(bearish cross-over as the 50 day Moving Average breaks down the 200 day
moving average on the S&P) which is not a very good signal for
markets...but readers knew for some time that we did not like what our
charts were telling us.
income investment and cash are extremely vulnerable to to currency
debasement and high inflation.
As the value of fiat paper money deteriorates year after year,
Bonds are not going a star performer. One does not
need to be a brain surgeon to figure this one out.
Thursday July 1, 2010 - The time has come to put
your eggs in few baskets and watch the baskets closely. Today
"Diversification has become an excuse for Bankers and Fund Managers to
explain how they loose your savings"
U.N. wants to scrap the
Dollar as sole reserve currency. The
dollar has proved not to be able to be a stable store of value, which is
a requisite for a stable reserve currency...more
strongly during today's trading session. We
updated the Dollar and Euro sections this week and our technical
indicators showed this kind of action was very plausible. The Dollar ran
into the Mother of all Necklines, and the weekly and monthly indicators
are turning down.
Gold ETF swells to
pass $ 05 billion milestone. The Gold ETF is a good
indicator for fractional Gold. If GLD would be a bank it would rank 5th
- just below France and above China...more
we don't like
Treasuries, Municipal Bonds.
Best case scenario we will have a debt moratorium but
normal case scenario is that they will loose their full value during the
coming hyperinflation. As of May, Florida
had 125 districts in default on more than $3 billion in bonds, the
single biggest muni bond default wave in at least 30 years...more
level of public debt in many industrial countries is on a unsustainable
path. Expenditures related to ageing
populations are set to increase considerably over the next years...and
this is the catalyzer of
there is absolutely NO DOUBT we're heading for another
fashion. As explained before it is extremely
difficult to forecast WHEN it will start because a Hyperinflation also
is a psychological/social phenomenon. For this reason one must be
prepared BEFORE it actually starts.
into account the 5 year accumulation pattern of
-Silver we are able to calculate the
long term objective. Mind blowing....more
Goldonomic, Florida, USA -