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Archives for November 2010

Tuesday November 30, 2010 - The Euro is down too much, too fast and too deep!

  • There are more problems in the western world than the Economy, the Banksters and Finances.  The Wikileaks are just one blatant example.
  • Beware as the pendulum can swing in another direction any day. Are you prepared to bet that the Euro will disappear before the Dollar will? Do you realize  that in the USA each week at least 3 banks are closed down, that the FDIC (bank guaranteeing institution)  is deeply in the red? That more than 100 banks have been closed in 2010? Total US federal debt has doubled in the past seven years, to almost $14 trillion. That's more than $100,000 for every American household. This explosive growth in federal borrowing is a result of not just the financial crisis but also government unwillingness over many years to make the hard choices necessary to rein in our long-term structural deficit.

    Retiring baby boomers, who will live longer on average than any previous generation, will have a major impact on government spending. This year, the combined expenditures on Social Security, Medicare and Medicaid are projected to account for 45 percent of primary federal spending, up from 27 percent in 1975. The Congressional Budget Office projects that annual entitlement spending could triple in real terms by 2035, to $4.5 trillion in today's dollars. Defense spending is similarly unsustainable, and our tax code is riddled with special-interest provisions that have little to do with our broader economic prosperity. Overly generous tax subsidies for housing and health care have contributed to rising costs and misallocation of resources.

    Unless something is done, federal debt held by the public could rise from a level equal to 62 percent of gross domestic product this year to 185 percent in 2035 (where else have we seen this?)
  • Quantitative Easing in Europe. Last week the ECB  bought  € 1,350 billion Bonds. There are NO EXIT PLANS and the ECB and Central banks MUST continue to print more and more money just in order to keep the Financial System and the ECB alive....such ALWAYS results in a HYPERINFLATIONARY depression.
  • Worst case scenario for Dollar Gold is $ 1260. But we really doubt Gold will correct during what is often the best time of the year for the Gold and Silver sector. $ 1320 is the stop loss level...

Monday November 29, 2010

  • The Dollar/Euro are like devils dancing in holy water. Sometimes a currency does go up for the wrong reasons.  The short term down trend of the Dollar index is still intact. Over the last years the Dollar has been relatively strong during the last weeks and sometimes the first weeks of the year. Seasonal factors do play a role. Having said this, the Dollar/Euro exchange rate has been extremely DIFFICULT to forecast!

“If the euro is abandoned, and we go back to the peseta, lira, escudo, drachma etc., devaluations would follow immediately,” said Arturo de Frias, head of bank research at Evolution in a note to investors today, adding the industry is a “great buying opportunity.” Devaluations mean write-offs “of a size that would render the whole European banking system completely insolvent.”

  • South-Africa battles with exactly the same problems Europe and the USA has! Believe it or not but also in South -Africa the Real Estate bubble starts to deflate, also in South Africa interest rates start to rise and also in South Africa municipalities are broke. What we experience is a paradigm shift and not a local American or local European problem. The weakest countries are collapsing first....other will collapse later...domino, domino....more
  • The EU decided to print € 85 bn to bail out Ireland. There was NO DOUBT in our minds that this would have been done.  Now that all is over, the Euro will recover until Portugal, Spain, Italy or any other European country starts to play domino, domino.

Friday November 26, 2010 - 'The Euro Game Is Up! Who the hell do you think you are?' - Nigel Farage MEP


  • And you are so naive and think your Private Pension Plan is safe and won't be stolen away by the Authorities like happened in Argentina?  Exactly the same is about to happen in Hungary and will repeat itself all over the Western World!...more

Thursday November 25, 2010 - Thanksgiving in the USA....don't expect spectacular markets until Monday.

  • Totally expected. Domino, domino, after Greece and Ireland yields for Government Bonds in Spain and Portugal spike up. The domino game will extend all over the world....after Europe (countries like Belgium and France are next) comes the USA where the crash of the municipal bonds seems forgotten for the time being....Long term interest rates in Greece have almost reached 12%, in Ireland +8%, in Portugal almost 7% and Spain almost 5% Best case scenario we shall have a DEBT MORATORIUM of Government DEBT in Europe. Because this would have devastating effects on the Insurance companies, pension funds and Bank reserves, we are fairly confident the EU will just like the USA opt for QE (print money) so the Authorities can blame Hyperinflation for all the problems instead of themselves. Having said this, the QE will once the static is gone have a positive effect on the stock markets and more important push the Gold sector further up.
  • CASH and BONDS will be the biggest losers! No joke....Get out as son as possible and stay away....hyperinflation will take your cash away, even if you keep it under your mattress!!!
  • There is NO WAY the EU will and even can survive! The EU has been a narcissistic political political monster from day one.  If you merge 16 small open economies, you get a large closed economy. But here is the catch. If you assemble the leaders of the 16 small open economies, you get a roomful of 16 small-economy politicians. Economic governance through the European Council has proved always cacophonous and often incompetent. It is an institutional framework of finger-pointing. The Irish say they are not Greece. The Portuguese say they are not Irish. The Spanish finance minister said last week that Spain is not Portugal. There are no prizes for guessing what Italy is not...more The EU was never an ideal candidate for a single currency because: it did not have a centrally controlled fiscal policy, or full mobility of labor, and it did not have a common language. These disadvantages remain.
  • The rule of thumb during a banking crisis: trust no-one, least of all the politicians.
    • "..Brian Lenihan, Ireland's finance minister, told Irish radio early on Wednesday the banks had "no funding difficulties."  - The Financial Times, November 18 2010.
  • We told you over and over again the Banks are bankrupt and will rot to the core. At the same time, also totally expected, the shares of the Banksters are dumped again. [Banks, insurance co's, pension funds, life insurance co's, re-insurance co's are to be avoided: not only is it dangerous to buy their stocks but it is as dangerous to hold any deposits and/or other obligations with these] In the USA no wonder  it is Goldman Sachs who's keeping up the appearances...Hopefully you are aware that if you leave the management of your savings to the Banks these will take your savings with them when they disappear.
  • We have updated the charts in the World Stock market section. Interesting 50 day Moving Averages!
  • It's the fault of the damn people not doing anything about it!  Appearing on the Alex Jones Show today, Texas Congressman Ron Paul expressed his outrage and disgust with the TSA and its unconstitutional naked body scanners and genital groping under the transparent pretense of protecting the American people from terrorists in distant caves...more
    • “If we tolerate this,” Paul said, “there’s something wrong with us.” He added that the American people deserve to be humiliated and demeaned by the government if they refuse to stand up and resist.
  • If you decide to buy SILVER, DON'T buy Silver ETF's ( these are instruments created by JPMorgan and there are NOT properly backed by physical Silver). The Horizon ETF is a better option HZU.TO
  • What ever the Authorities are telling you (trust no one, least of all the politicians), this is THE END of the DOLLAR...more

Wednesday November 24, 2010 - Tomorrow is Thanksgiving and as each year we expect not a lot to happen until next Monday.  Our service will also be minimum until Monday.

  • Are you investing with the Apprentice or the Sorcerer? Let's assume the Gold sector tops out in January, February or March 2011. Do you think it will be wise to cash your profit and exchange your holdings of Gold for US Dollars if you knew the Dollar would crash by 30%?  Worrying at this point is the bearish flag $-Gold is building in the top of its bullish channel. But one needs to assert Gold expressed in other fiat currencies before drawing a conclusion. Having said this, A CORRECTION has to be expected sooner or later!
  • We have been bullish for the World Stock markets for some time now. This however doesn't mean that we are actually prepared to invest in them! Remember what happened to the Financials beginning of this year? Those who invested in it all lost money....This is the difference between Stock picking and Investing!!!
  • The US Dollar has been strong during the last weeks. Tomorrow however the Thanksgiving weekend starts and I get the impression it was the PPTeam interacting to ensure NO ACCIDENTS will happen between tomorrow and next Monday. Remember that we have a race for fiat money towards zero and it will be won by the Dollar and not by the Euro. Worst case scenario a level of $ 1.32 for € 1 is possible...We almost forgot that the year end is close and that co's may have started to repatriate profits made abroad. Add to this the Irish problem which probably also have an impact on the Dollar/Euro in a similar way the Greek problems had.
  • Today's financial markets have become dangerous Casino's where short term fluctuations are controlled by the games of Hedge funds and Large players.  What many forget however is that they also  are subject to the laws of nature. As an investor you either try to play the Casino and will loose for sure, either you invest properly and sit tight as long as requested...until the Herd makes your position profitable. Nobody has to be a sorcerer to understand this!?
  • Is the rally over or will it continue? We have an extremely important development for Silver... Do check both the charts of Silver in Dollar and in Euro and it becomes clear what Gold is about to do soon....more
  • We have a similar development for €-Gold. Our Point and Figure chart doesn't leave a lot to imagination...more
  • We have a new PF chart for €-Gold objectives....very interesting and straight forward...a school book example it is. We also have a new PF chart for Gold expressed in British Pound with objective.
  • Interesting is our PF chart of Gold in Rand and important it is for the SA Miners. Worrying is the technical formation of the €-ZAR Point and Figure chart. Gold expressed in Yen shows the same basic pattern as Gold expressed in Pound Sterling. Interesting is also our chart of Gold expressed in Swiss Franc. and we also have an interesting schoolbook formation on our PF chart for Gold expressed in CanDollar.
  • For our many friends and readers in India and Russia we have added the charts of Gold in Rupee and Ruble. Not a single chart looks toppy...

Tuesday November 23, 2010 - History repeats because Government is ALWAYS and without EXCEPTION corrupted to the point that government always dies by its own hand [ Martin Armstrong].

  • Government ensures a good portion of the fiat money they create goes to the Bankers, Administration, police force, TSA and army as leaders need these for protection and survival. [It is said that at the time of Constantine (end of Roman empire) there were more Government people than there were tax payers]. Protection is needed as the people start to experience the incompetent management of Government because of higher taxation and more regulation. It was excessive taxation that undermined Rome as an empire: because conquest became impossible, Roman leaders turned towards its own people taxing them to the point of driving industry and capital out of Rome. The Irony is that is was the Government employees rioting in Greece and that it is the Government Employees in countries like Belgium which are unhappy.

  • Crisis investing VI pictures what happened in Chili during the hyperinflationary depression which ended in 1981. A similar story like we saw in Zimbabwe. Today Chile has one of the smallest Public debts and Banks were again split in Deposit banks and Investment banks...more [note that in the EU we already have wage and price controls]

  • Irish Debt is € 50,000 per household. We know that the level of PUBLIC DEBT is extremely HIGH. But nobody seems to understand that once Interest Rates starts to climb like it is happening in Greece because the markets starts to understand there is NO WAY Government can repaid its debt, higher Interest rates will take the bottom out of the system.

The pigs have wings and they fly: "Specialist from the IMF and the EU arrived five days ago in Dublin to check the books of the Irish Government and Irish banks and to see how much Money they would have to print. The funds will be given to the Irish government who will re-distribute them to the Irish banks. The Irish population will have to refund the total amount plus interest."

  • Which ever correction we may see for the Gold sector, remember at all times that we are in a SECULAR BULL TREND. Having said this, it is not hard to picture what will happen as not only $-Gold breaks through the top of its bullish channel and accelerates but €-Gold, £-Gold, ¥-Gold, CanDollar-Gold, Swiss-gold, etc...also do!

  • Silver is leading Gold and we are about to see some dramatic action soon....Gold and Silver Seniors and Juniors are confirming last weeks action !!!!

  • We have published a chart of how our Juniors advanced compared to GLD and other Stock market indexes. Impressive I must say.

  • The Gold and Silver Seniors are doing their part of the job and tell us what we can expect for Gold and Silver between today and the spring of 2011.

  • One of our key investment policies is to safeguard as much purchasing power (real money) as possible so we can BUY the opportunities the coming crisis will offer. In order to succeed one must restrain from trading!!

Monday November 22, 2010 - The public always does the wrong thing. Propaganda makes your life and will ultimately also take your savings...once people realize they have been lied to, they revolt. Off course it is a lot easier to "believe" Politicians, your Banker and Talking Media you SEE each day than to try to read and understand a message published on some Web site.

  • Spain and Ireland have ghost towns. European propaganda pretends Europe won't see their Real Estate bubble burst!? We heard this kind of stories and denial before in other parts of the World (the USA, Spain, the City of London, Dubai, England,. The complementary map comes with pictures of new ghost houses in Ireland....more .In 2005 and 2006 when I wrote that the American and Spanish Real Estate Market would collapse , most people  thought I was an idiot (some even said so) for nothing in their minds (incorrect signals are sent out) indicated such could happen. Real Estate was still selling well, the slow down in sales would be nothing more than a correction (real estate happens to have corrections now and then) and the Bull run would resume soon. Most continued to invest in the sector and they added even more Real Estate to their exposure by purchasing the first Foreclosures. But then the Real Estate Bubble did burst after all and  the Herd got chained to bricks and mortar, to their house and enslaved for life by a Mortgage contract and negative equity. What an easy and effective way to control people....[People who travel around look at Society and Economic systems from a distance and are actually dangerous because they SEE the falsifications and twists]

  • Fractional Reserve Banking and fiat paper money need exponential growing amounts of fiat money to keep the system floating. Propaganda (Real Estate is one of them) ensures all of you participate in this effort. Each one who buys Real Estate and signs a mortgage creates money and so helps the Authorities in keeping the system alive. Each one who buys a car on credit so creates money helps the Authorities in keeping the system alive. [logic Mister Holmes: the more money you print, the less it is worth]

  • The Bond market continues to disintegrate. In 2009 we wrote the Bond Market was an accident waiting to happen. In a couple of months time, the profits made over 2 years have been wiped out.  Expect with time bonds and (AA, A) to default al over the board. When it happens the principal and the interest on these bonds will be lost. Treasuries will last somewhat longer but their value will either be wiped out by hyperinflation, either by a debt Moratorium. Municipalities and even Governments have been issuing more and more debt but contrary to Paper Money there is a limit on the amount of debt one can create and the chickens are coming back home to roost.

  • Mister Prechter, in a system of Fiat Paper Money Inflation and Hyperinflation ALWAYS precedes Deflation. We do have life historic proof of this statement: Chili, Turkey, Argentina, Zimbabwe,...

  • And -off course - Europe races to bail out Ireland! After the typical European Political polka...why would they let Ireland and the Euro crash!? After all the rescue is made with Fiat Paper money created out of thin air and it is only the European citizen and his children which shall pay for it...more

  • $ 11,000 fine and a possible arrest if you refuse airport scans and pat downs.  Believe it or not , this ain't Ripley's and it is happening in the USA....Fear is used to take away even more Liberty in the USA...more. I remember that years ago I told people we would come to a point where we would have to ask Government the permission to pee, what clothes to wear,...The western world is coming closer and closer to a Mao society (which went bankrupt) who ordered all to have his Red Book and wear Mao jackets.

Friday November 19, 2010 - It's not Gold and Silver going up, it's paper money burning -

  • Resistance is now support for the Gold and Silver sector. Gold and Silver had to cool down and to consolidate before it can resume its Bull Run...This is about to happen NOW.  November and December are traditionally very strong months for Gold and Silver. Ireland will be bailed out and so will ANY Government and Financial institution running into problems. QE (money printing) in infinity we shall have until Hyperinflation brings it all down. In the mean time the Bond bubble is deflating and is so silently stealing billions and trillions of savings....

  • Check our PF chart for €-Gold is you still are in doubt about about $-Gold will perform.

  • The 2009 Bond crash is happening now. (sometimes we're a bit early with our previsions) Check the interactive chart of the Economist and our green long bond chart with A-B-C. We have seen A-B and also C for Greece, US Municipals, Iceland Bonds,....who's next? [Note the situation is Japan is a lot worse than many think it is. See our updated Bond Fundamentals.]...An implosion is from now on plausible as we shall see QE to infinity...more

  • Commercial Bonds have also fallen in STOP LOSS...more

  • Dollar to Become World's `Weakest Currency,' Drop to 75 Yen, JPMorgan Says. We have our own support and resistance levels, but important is that even JPMorgan has to admit the Dollar is heading towards its Real Barbaric value or ZERO.

  • The Plunge Protection Team momentarily does a good job in keeping the Dollar from crashing on the Forex markets while the bn $ 600 of new bonds (QE) are being sold. Be aware that part of the Bonds are bought by Financial Institutions overseas and that these have to buy DOLLARS as they invest in these Bonds.

  • The New President of the IMF (International Monetary Funds) is an old chap from Goldman Sachs. Wall Street keep the ranks closed!

Thursday November 18, 2010

  • It it amazing how people like to believe the situation is better overseas. In Europe they think of the USA as a heaven (run by Obama) and preach the end of the Euro and the EU and in the US they see Europe and it social system (which is about to go bankrupt) and a secession of the USA  and the end of the Dollar. Few understand both systems are in fact interlaced and if one fails, the other also will. Fractional Reserve Banking and the creation of Fiat money out of thin air is what it is and is destroying the financial systems and economies on both sides of the Atlantic.

  • Gold will go to unimaginable prices as Western society implodes. Neither the right nor the left has a clue of how serious conditions are. Politicians haven't got a clue of economics. They act as idiots running the madhouse and it is a shame the people haven't stopped them.  As I have told you for years, there is no practical solution to what many administrations have done. Printing money, monetizing debt and debasing the Money (they are so bold they call it QE)  is not right but it is the only tool left....but John Law had to sneak out of Paris at night dressed as a women!

  • The mid-November to late December period is another seasonally powerful period for Gold. Bottom fishing is a terrible difficult hobby. What we can tell, is that a close above $26 puts Silver back In explosive mode. When it does Gold will also do.

  • Gold and Silver Stocks now are likely the greatest market play of the past 100 years. On condition that you're invested in the GOOD ones!

  • This is WHY we have our CHARTS !!!! A picture often tells more than one million words...and it take less time to look at it than to read and read and read....information which is often incorrect or at least tainted. Perhaps the most troubling aspect of the Gold Market is that what we do not know vastly exceeds what we think we know. Yes, we watch the price of Gold and the Commitment of Traders reports and the Comex Inventory levels and the weekly Eurosystem sales reports and the ever suspicious ETF inventory reports and much else besides. How much of this is accurate is questionable.

Wednesday November 17, 2010 - 2009 Bond crash: what we wrote in 2009 is happening today in domino style...Iceland, Greece, Spain, Portugal, Ireland, US Municipalities,... - more

  • Big Sister turns up the heat: new-super enhanced pat down more invasive. The TSA’s invasive new screening measures include officers literally putting their hands down people’s pants if they are wearing baggy clothing in a shocking new elevation of groping procedures that have stoked a nationwide revolt against privacy-busting airport security measures....more  The people and even Pilots start to revolt...who would not!? Too much is too much....The crisis we have is not only a financial, economic one...it's also a crisis of SOCIETY!  What is happening in airports today can no more be classified as 'Normal'.
  • Chicago Mercantile Exchange rises gold margin by 6%. or the price of a contract goes up by $ 250. A lot of static...but no fundamental changes...such can ONLY impact the market in the short run. The best way to rub their face into the mud would be to close down bank accounts with both JPMorgan and HSBC. This is war and we have to take it to their doorstep. The CME is just following orders from it's master (JPMorgan and Associates).
  • WE HAVE BEEN WARNING FOR THIS during MONTHS....The US municipal Bond Market is collapsing and US Bond markets lower as the Fed starts to buy (market) $ 600 billion fresh Bonds. Luckily they (Central Banks and Plunge Protections Team) succeeded in keeping the AURA over the Dollar (which has been strong for the last days)...more [ Important to know is that the FED just like the ECB buys Bonds through connections in London and the Bahamas].
  • Interest rates in the USA are slightly higher!? You ain't seeing nothing yet. A lot higher they will be. We don't really mind as we know the stocks and commodities we're invested in don't mind. In the 1970's at the time of the last Gold run, interest rates were around 7% and Volker had to take them all the way to 20% before the bull run of Gold could be stopped. Such cannot possibly be done today as it would ruin the whole system.
  • $-Gold did fall through the $ 1360 level. See our charts under Gold, Silver for the potential next support levels.  Brace for more volatility AND price levels moving through support and resistance levels BEFORE they change direction. Such makes it even harder for the Trader (short term) to make money. Understand that as the bond market implodes, there will be initial weakness in gold followed by tremendous strength.
  • We will have an outrageously volatile euro but expect the dollar to be lower on balance. Corrections are normal and often come at a time when nobody expects it. Most of the time however they are initiated when markets are overbought. "They" have good technical analysts...paid by the money they print. Having said this these extreme currency fluctuations ( $ 1.42/€ last week and $ 1.36/€ this week or 4% off in only 7 days!!!???) make it impossible for business people to conduct 'normal business'.
  • How many times did we write this!? The ECB camouflages a great deal of its Quantitative Easing in secretly being the buyer in the bond offering of the country in question.  The Europeans had their training session before, during and after the World wars.  The media lauds the UNEXPECTED good buying in the euro; the euro moves back into the $1.35 where the international investment banks put out their short and do it all again. The bad news is that Europe is courting a business disaster by their actions on austerity (see yesterday) while at the same time doing QE in the bailout and covert bond buying at auction. Greece has 110 billion committed which is without any doubt covert QE.
  • Few people notice that today ALL markets move in symphony: as the Dollar goes up, Commodities, Gold and Silver and the Stock markets come down. Whether we consider stock markets in Europe or the USA of Japan...the correlation sometimes is so blatant you can put charts on top of each other and they will melt in each other.
  • We have published a chart for Uranium in the Commodity section...more
  • The [financial] Media ONLY TRY to explain what is happening on the Financial Markets EX-POST (after it all happened). It is more and more obvious they don't know what they write about and that they only succeed in creating more volatility. Advisable is NOT to LISTEN to them.
  • Amazing is that there is absolutely NO MEDIA coverage of the municipal Bond collapse in the USA!? The municipal bond market is clearly in distress. California, the largest and arguable the strongest state economy in the US union, is in the process of testing the 2009 constant currency lows. The national municipal bond index has already fallen on its ass. The 2009 lows were breached in September 2010.

Tuesday November 16, 2010

  • The Price of URANIUM continues to go up. So does the price of the Uranium stock which we have selected (see subscriber's section for JUNIORS). Political Empty heads have no choice but to change their minds about Nuclear Power as the supply of other sources of Energy (Crude Oil and Coal) is dwindling and their price soaring. Only a couple of years ago they decided to close most of the Nuclear power plants...today the price to built a power station has soared and the politicians changed their mind. Al Gore has disappeared from Earth and people are experiencing Global Warming was a Propaganda joke.

  • We're sailing through the Eye of the Storm. There is a lot more to come...BONDS, Treasuries and Cash will be blown away when we're leaving the eye.  Such is already happening in Greece, Portugal, Ireland,...

  • The race of Fiat Money towards ZERO is not over yet. Greece and Ireland are back in the News and the pendulum is temporary swinging back in favor of the Dollar.  Important is not to forget that as China has important reserves of Dollars and Economic power, the Chinese central bank is dictating partly the exchange rate between the US Dollar and the Yuan.

  • $ 1360 - $ 1350 is still holding...to be continued. Even if the support level doesn't hold, with the fundamentals of today we expect the correction to be small and we're not about to give up our Real Money so easily. Remember not to listen to the MOPE and STATIC and to BUY the DIPS!

  • We've updated our portfolio: + 5.60% expressed in Real Barbaric Money and nice profits when expressed in Dollars and Euro's.

  • When we said we were bullish about World Stock markets, we wrote they were going up for the wrong reasons. Therefore one should not get involved without important restrictions. Financial did -technically speaking- break out beginning of this year. And yet we decided NOT to get involved because of the BAD FUNDAMENTALS.

  • Europe is sailing straight towards a remake of 1933. Unless the ECB takes fast and dramatic action, it risks destroying the currency it is paid to manage (the Euro) , and allowing a political catastrophe to unfold in Europe. If mishandled, Ireland could all too easily become a sovereign version of Credit Anstalt the Austrian bank that brought down the central European financial system in 1931, sent tremors through London and New York, and set off the second deeper phase of the Great Depression, the phase when politics turned ugly...more  As usual the European politicians need more time to roost the chickens than the Americans need. In the end they solve the problem in a similar way the Americans do: THEY PRINT the MONEY of as is said in such a sickening sophisticated way: they use Quantitative Easing.

Monday November 15, 2010 - This week may be very important for the Gold and silver sector.

  • Note that the Two Year Subscription will only be offered until end of 2010 as we expect that the High Inflation and probable Hyperinflation will force us to increase our subscription rates dramatically in 2011.

  • As explained earlier HYPERINFLATION could already start end of this year and we shall probably see it in 2011 and not later than 2012.

  • Agricultural products went up by 450% year to year basis. Think about it, this is catastrophic! If this is no prelude to Hyperinflation, than we must be idiots. But it will ONLY become hyperinflation once the propaganda fails and the HERD starts to see it. Those who have not protected their savings will be slaughtered...more

  • Oil and Coal have broken out. Natural Gas is still building a bottom. A breakout however will be for soon...more

  • Oil and Gas shares and Oil and Gas explorers must be accumulated during the dips. See our selection in the subscribers' section and portfolio...more

  • Our Point and Figures chart of HUI (Gold bugs index) tells it all. Gold and Silver shares have made more than one point by breaking through this resistance zone. Let's see how the market react this week on the Push by the Cartel. Try to look at a different way to this sector: "it's the price of Fiat Money going down''....more

Friday November 12, 2010 - Today is also a BANK HOLIDAY in most of Europe...

  • No more War!? Treasuries (Government Bonds and Bills) are not even worth the paper they are printed on. I have a complete collection of Bonds which became worthless because of a Debt Moratorium issued by the Authorities. I even have GOLD guaranteed bonds which became absolutely worthless (except for their collectors' value). They all date form BEFORE the 1st World War to after the 2nd World War. Because those who lived those times have passed away, today people don't believe it will happen again. What a big mistake they make...

  • The next bubble to burst is the bubble of the BOND MARKET. This has/is already happening in Greece, Portugal and now in Ireland. Irish yields for 10 year Government bonds soared from 5% last May to almost 9%. When interest rates rise, the value of the bond falls to compensate for the new rate...The chart for Irish Farmland (click on picture to enlarge) CLEARLY shows the BUBBLE it was/is in. Trees NEVER grow all the way to heaven...not even Real Estate trees!

  • Fractional Reserve Banking is in fact worse than Usury. Really amazing is that there are so many people who fail to understand that Fractional Reserve Banking is, by principle, worse than usury. Most Religions forbid Fractional Reserve Banking like they forbid Usury. When things get so bad that Banks are bailed out by Governments instead of letting them go bankrupt, one can expect the worst for the future.

  • The Gold Pool II is loosing its grip on the Gold and Silver markets. History tells us the Central Banks and Authorities NEVER win from Real Barbaric Money. Important is to understand that Gold and Silver will - at a certain point in the future - start to behave in a completely different way. Hence be EXTREMELY PRUDENT each time you go back to paper money and remember that it is WORTHLESS.

  • A glance at our chart of Gold expressed in Canadian Dollar explains why the Junior Gold and Silver mines have skyrocketed. Our chart of Gold expressed in Australian Dollar is revealing for the strength of the Aussie and the picture of Gold. The Chart of Gold in Swiss franc shows that the raids of the Gold Pool II will at a certain point completely fail. If you take some extra time and check our chart of Gold in Yen, Sterling, SA Rand (this chart alone will pay for your subscription) and Euro you will have a fairly good image of what to expect for the Gold and Silver markets, Major and Junior Gold and Silver stocks over the coming weeks. A much better exercise than listening to and reading most comments.

  • Our Forex charts again are once more trying to tell us something extremely important. Very interesting (as usual because it is our Canary) are the charts of the British Pound against the Dollar and against the Euro. Not bad at all for the Euro I would say...Nothing has changed the balance between the US Dollar and the Euro. Hopefully you used this November 11 correction to sell Dollars and buy Euro's !?

Thursday November 11, 2010 - Today is a BANK HOLIDAY - A paradigm shift we have - don't let you fool by the Gold Pool II !

  • The Chinese know that Gold is Gold and Silver is Silver and BARBARIC MONEY. Brace for volatile markets UP and DOWN as the Gold Cartel/pool tries to bring its price down and the Investors keep buying the physical markets and don't let you scare away by TOP and BUBBLE prophets who don't know what they are talking about and by the Central banks who do all they can (like the Gold pool I did in the past) to manipulate the price down... We see $ 1380 (level used to be resistance) as an important Support zone.

  • The volume on the Silver ETF (SLV) is reaching record highs and we are concerned about a short term climax top. It’s very hard to sustain a move of this magnitude without a correction...unless...there are off course always exceptions to the rule. Although it takes courage taking profits during a bubble, I’ve learned through many experiences how important it is to stick to a method and sell into strength. There’s significant risk of a correction and limited potential on the upside short term. Yet, we do have a special situation as Silver and Gold have been manipulated by the Gold Pool II, as physical and paper Gold and Silver clash and as Gold and Silver mines are/have broken out. AND we can only exchange Real Barbaric Gold and Silver for worthless fiat paper money.

  • This is a fascinating battle between the paper and the physical market...$30 is just going to be a small pause along the way to much higher prices  There is an insatiable appetite for physical silver here and the shorts know that, the shorts also know they are checkmated.  The Asian buyers are layering in bids to take advantage of bear raids in the paper market which have been used to shake out the weak hands. Silver and Gold spot trades 24 hours a day, so as the shorts raid the market, physical buyers already have orders in to buy tonnage of silver at a time on that weakness. The Banks wanted to target $25.50 If they are able to do that it will have to be achieved on a sharp, fast move down.  The longer you hold the price down, the more physical you are going to give up and the lines will cross against you...but the Banks know where the stops are, they actually SEE them in their Books.

  • High Time for a change in reasoning! Remember we have a paradigm shift. Why would one exchange REAL ASSETS for worthless paper money? If you still think you should sell some Gold and Silver shares, you MUST use the proceedings to Buy REAL BARBARIC MONEY or Gold and Silver. If you don't you just go back to worthless Fiat Money...Before you Sell, take some time to READ and Check our Charts in the subscribers' Sections.

  • Those who still have doubts about how Gold is about to behave MUST check our €uro-Gold Points and figures chart. It tells more than 1000 words.

Wednesday November 10, 2010 - No doubt the Gold cartel [Gold pool II] is loosing its grip....

  • Which way Dow? Which way AEX, CAC, DAX, SMI, EMZ????We have updated all charts in the World Index section and were able to add Objectives for certain Indexes. Interesting....more 

  • Very interesting again are our charts of the World Indexes expressed in Gold. The Japanese Nikkei and the Chinese Index especially. There is no doubt common stocks are loosing against Gold. This is unexpected...more

  • Our LONG TERM CHARTS are a good confirmation of the scenario we have written for the coming months and years...more

  • In the Gold and Silver share section we had some spectacular Bull Runs. Hecla mining is a good example. So is ASA.  Don't start to TRADE !!! Sit tight...there is more to come...more

  • The same remark applies to the Gold and Silver Juniors  [updated](if you don't have any, right now you must be biting your nails'...more

  • China lowers the Credit Rating  of the USA...more

Tuesday November 9, 2010

  • It will be beneficial to the US Economy to have Harley Davidson manufactured in India!? MOPE and STATIC is is divulged by ignorant Media. There is no way that any production in India can bring more for the US Employment...more

  • If you have to invest with the information (MOPE & Static) sold by those guys on Television, you really are unfortunate. The best they can do, is act for a comic movie and try to fill up the impossible: daily fluctuations. Sorry guys but Finances and Emotional Television don't go hand in hand. And I now understand why these people always have to shout.

  • For weeks now Subscribers can see how the World Stock markets are becoming Bullish. This is the prelude to Hyperinflation and World Stock markets will go up in NOMINAL TERMS ONLY FOR THE WRONG REASONS. Because this will happen when expressed in Nominal Terms and not in REAL terms it is a LOT SAFER to store your purchasing power in Stocks than keeping Cash and Bonds. It is however EXTREMELY IMPORTANT to be invested in the RIGHT instruments to ensure the Hyperinflation doesn't wipe away your money like it did during the Weimar Hyperinflationary depression and it did during the recent crisis in Zimbabwe.

  • Our portfolio Juniors is up by 136% since August 2009. This is when we initially published our shopping basket.


Monday November 8, 2010

  • Buying Debt with Debt. This is what Economists call Monetization of Debt and the prelude to Hyperinflation. "This month will come in the History books as The Month where Authorities started to Monetize their Debt.!"

  • Forget that a Run on the Banks could cause a Drama. The Authorities are prepared and won't let this happen. Assuming a run appears plausible they will simply nationalize the Banks to calm down the Herd. In Europe during the 1960's and 70's many Banks were as a matter of fact owned by the Government. This was also so for Airlines, Railroad Systems, Communication (Telephone), Media (Television).

  • One can print an infinite amount of Fiat Paper Money but this cannot be said about Debt. As a matter of fact, one can create even more as it is done DIGITALLY. One can create A LOT OF DEBT and create even more DEBT by artificially keeping interest rates LOW. However there is only so much debt that can be created....more

  • We've reached a point where we don't understand how somebody can be happy and feel safe with Worthless Paper money in their pockets and/or worthless digital money on their bank accounts. This also applies for Government Bonds and Treasuries as these are nothing more but an option to buy this worthless money.

  • Gold can, because the characteristics of Gold, NEVER be a Bubble! Gold is Gold and today like it did did 50 years, 100 years, 150 years, 250 years,...ONE OUNCE of Gold buys a quality men's suit at any point in history.. Gold is the standard by excellence that tells us how much Fiat Paper Money is still worth. Although its intrinsic value remains equal through history, its price expressed in Fiat Money can reach billions, trillions and more....like it did during the Weimar Revolution and the more recent Zimbabwe Hyperinflationary depression.

Friday November 5, 2010

  • $-Gold and $ and €-Silver explode (the 2% rule is shattered). Gold and Silver shares but also Commodities, Oil and Oil shares follow in the wake. Don't delay your purchases. Now is the time to readjust your savings. Gold broke through the $ 1380 and today we forecast it will now prepare to break through the $ 1420 on its way to $1450. Subscribers can check our objectives in the subscribers' section.

  • Bonds are an extremely dangerous Bubble. This past week Greek, Portuguese and Irish Bonds were massively dumped by Investors. The yield of Greek bonds has risen to 11,14%, in Portugal to 6,46% and in Ireland to 7,54%. Give it some time before Spain, Italy, France, Britain and even Belgium joins the ranks.

  • Our charts leave little doubt what the next objective for the Dollar/Euro will be...more and they show important key reversals on the charts of most currencies expressed in Dollar.

Thursday November 4, 2010 "People are sick of voting because voting changes nothing. It makes it only worse".

  • We had a bottom of the Gold sector! Yesterday saw a Failed intervention of the Gold Pool in the Gold and Silver markets. Clear is that "they" [Gold Pool II] are loosing their grip on the Gold and Silver markets and Manipulation becomes more intensive...but fails more and more. Buy the dips!

  • We also had a weak dollar which is falling out of its election bed and a consolidation zone. You have to be blind not to see it! The level is .77 [check the chart in the subscribers' section]. The failed intervention is also visible on the chart of the Dollar index left. It happened just before the Stop loss.

  • There are only two ways to Tax people: direct taxation or indirect taxation by Inflation. After the land slide in favor of the Republicans, the only option left, is [Hyper]Inflation.

  • Natural Gas and Coal are coming alive. Check the charts in the subscribers' section.

Wednesday November 3, 2010 - we told you what would happen once Can-Gold would break out...

  • Crude Oil [breakout] continues to do what we forecasted all these months. Oil shares also. Even BP has digested the Gulf spill and  is back into profit...more

  • Commodity currencies or the Canadian Loonie and the Aussie remain strong.  We advised months ago to use these Fiat currencies to park the Fiat Cash you have. See if something has changed...more Having said this, our new objective of the Aussie/Dollar is scary!

  • A commercial Silver signal failure can happen for Silver as a significant of commercials (JPMorgan, HSBC) on the short side, are forced to cover. This results in a limit up. (We had it for October Cattle recently). We expect the price of your steak to DOUBLE in2011!

  • The Glass-Steagall Act of 1933 was repealed in 1999 (Gramm-Leach-Bliley Act - click to see who was so stupid to introduce this legislation) like Gold was abandoned in 1971 by Nixon. In Europe a similar changes were noted although not so clearly defined. After the Hyperinflation (1981) in Chile banks were again split up between commercial and investment banks.  Commercial banks could not invest their money into the stock market. At that time the FDIC was established. Over the past years however, as the Banks melted away it lost BILLIONS...more

  • The Dollar/Euro is hovering at a dangerous level and building a COIL.  The Dollar will be devaluated soon in a similar way the British Pound was in 2009. Once it breaks out of this zone, it has important implications for the dollar but also for Crude Oil, Commodities, Gold and Silver, Gold and Silver shares and common stocks. The Swiss in confirming the future of the Dollar and the Yen already has. Even the South African rand is breaking out against the US-Dollar. Take my words for it that the Media will blame the Elections outcome for a weaker Dollar!

  • Many Newsletters write the World Stock markets will break out. Subscribers know we have been forecasting this for weeks now. What the writers of the Newsletters don't explain, is WHY the Stock Markets are breaking out and whether you will be able to compensate for (hyper)inflation by investing in Common Stocks.

Tuesday November 2, 2010 - Technical indicators for Gold again in Buy mode

  • Our portfolio of Juniors has, since August 2009 (when we advised to BUY) risen by 108%...more

  • QE (money printing) to infinity if will be. The meeting of the American central banks tomorrow and the European the day after tomorrow is nothing more than narcissist window dressing. Nothing will change and it will be Money Printing (QE) until the financial system collapses. During this process we expect landslide elections and an exchange of leaders who will do nothing more than make it all worse...until the Apocalypse.

  • We expect the Apocalypse to happen 1st in the USA with the Dollar. The simple reason is that there are a lot of Dollars floating. The collapse of the Dollar will take down other Fiat currencies in its wake. The weaker ones will go first....

  • Silver and Silver stocks are a screaming BUY - also the Juniors.  First Majestic [FR.TO] has broken out!

Monday November 1st, 2010 - Today is a Bank Holiday in Europe and tomorrow are the Midterm elections for Congress in the USA. No cigar for Obama. He succeeded in terminating the Democrats is only 2 years time. Americans prepare to vote on Tuesday with analysts predicting a dramatic shift in power.

  • Logic Mister Holmes. In 1913, before the dollar had emerged as a global currency, the US had 2,293 Tonnes of gold compared with 248 Tonnes for Britain, 439 Tonnes for Germany, 1,030 Tonnes for France and 1,233 Tonnes for Russia. The Americans' large gold reserves made the dollar a natural replacement for sterling when the first world war crippled Britain's financial position. The US is now running a fiscal policy that has parallels with Britain during wartime, which will undermine the dollar's global role at some point....logic, for after all the Americans are some kind of British descendants [in a similar way to the Zimbabweans] who were in the past also colonized by Britain.

  • Potentially the most important new factor in the gold market is China. China now has more than $2,400bn of foreign exchange reserves, but only 1.7 per cent of this is invested in gold. The IMF is projecting that China will run a current account surplus of $2,600bn during the next five years. If it does, its forex reserves could rise to the $5,000bn-$6,000bn range. Even if it keeps the gold share of its reserves constant, it will have to buy a further 1,000-1,500 Tonnes. Yet the odds are high that China will want to expand the gold share of its reserves in order to lessen its vulnerability to dollar devaluations and strengthen the renminbi's status as a global currency.

  • The Potential for Gold and Silver Juniors is dramatic but you MUST adhere to the rules as explained in the subscribers' section. Check the chart of Banro.

  • Since the Real Estate in Spain busted, 150,000 Spanish building companies went bankrupt and 5,000,000 people lost their jobs in the building sector. Spain had one of the most extreme housing bubbles in the world, and its banking system still is heavily exposed to the property sector. Spanish authorities realized that without support the banking system would likely collapse, and they have intervened with guarantees and a plan to help banks sort out bad loans and recapitalize. In the end we believe in a Pyrrhic victory, with most Cajas becoming zombies and recovery being weak and delayed as Spanish sovereign debt continues to rise sharply.


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