Home Up Portfolio Investment Pyramid Daily Research Education Hall Press Video Literature Real Estate Subscribe

Archives for September 2010

Thursday September 30, 2010


Flames of anger: Strike fury over spending cuts sweeps Europe. Social unrest is closely linked to the (hyper) Inflationary Depression and will get worse as Real Spendable income falls. Cooked statistics only look nice in Newspapers and on Television...more

  • Tens of thousands march on EU's Brussels headquarters

  • Strikes and protests in Greece, Portugal, Ireland, Slovenia and Lithuania

  • French government unveils budget cuts of £34 billion

  • Demonstrator drives cement truck into gates of Irish parliament

  • The European social mattress can only last for so long. In order to keep the social system alive and running the Authorities in Europe will be forced to increase taxation. There is NO DOUBT all EU member countries (incl. Belgium) will at a not too distant time adopt  Wealth taxation. Real Estate is (like automobiles) a taxation subject by excellence - and everything has already been put in place to tax both Rental income and Properties. In the EU as of January 2012 ALL securities must be digitalized and the beneficial owner traceable.  Having said this, a real estate cycle last 76 years: up during 50 years and down during 26 years...more

    Wednesday September 29, 2010

    • The market capitalization of the Gold sector is, compared to the other investment instruments extremely small. Imagine what will happen once funds move out of these sectors and into the Gold Sector.

    • Gold and Silver may correct in the course of next month and offer and ultimate opportunity to step in at these price levels. Gold starts to accelerate its climb and it is possible that we won't see a correction. If you have no Real Money (Gold - Silver) you must buy some NOW! (this is a breakout) - Having said this we don't take any pleasure to see $-Gold has broken through the $ 1300 - Not good at all...a bad Omen for the Financial System, Bank system, Economy.

    • Ride the wave - The Dollar is again  weaker...we hope your banker/adviser did not tell you that the Dollar would be stronger than the Euro.

    Tuesday September 28, 2010 - at the end of the day, only Gold has proved to be a true and trustworthy currency over centuries -

    • Gold is the final refuge against universal currency debasement. States accounting for two-thirds of the global economy are either holding down their exchange rates by direct intervention or steering currencies lower in an attempt to shift problems on to somebody else, each with their own plausible justification. Nothing like this has been seen since the 1930s...more

    • There is no place to hide but Gold and Silver: "We are no longer talking about a single country having a big depression but the entire world.”  Don't waste your time to chase Dollars, Euro's, Swiss Francs, British Pounds or Yen. None of them is worth the ink and the paper they are printed with.

    • Is the Dollar now a leader in the race to ZERO? Japan has intervened to stop the strong yen tipping the country into a deflation death spiral, though it too has a trade surplus. Brazil dived into the markets on Friday to weaken the real. The Swiss have been doing it for months. If China continues to hold down its currency, the country will import excess US liquidity, overheat, and lose wage competitiveness. Central banks will sooner than later been caught by their own game.

    • Can you find any Gold bubbles? click on the chart below for a detailed search...(swiss, euro, yen, sterling)


    Monday September 27, 2010 - Gold is nothing more but pure barbaric money - for this very reason it is impossible to buy it "To Make Money" !              

    - The Gold Objective section has been updated- as well as the Subscribers' sections of Gold in Ruble and Rupee, CanDollar, Aussie, Swiss, Sterling, SA-Rand, Yen, Euro and CanDollar -  we did not find the bubble!]

    • Unbelievable that some Bank analysts 'dare' to call Gold a bubble!? We understand that some financial newspapers do print this kind of idea as it may shock many but they could at least publish some kind of decent reasoning. If one reads what they publish it becomes clear they have not the slightest idea where money comes from and what the consequences are of the modern monetary policy. They also don't seem to know that Gold and Silver have been the ultimate instrument to store wealth for centuries and they are an insult to their own intelligence if they even dream that they will be able to change this pattern. Better don't let those people manage your savings....

    • Unbelievable that some analysts call Gold worthless and a dangerous investment as it has no value because it isn't useful to the industry!? Gold is valuable because it is not consumed, there is a limited supply and the yearly production is relatively small. Because of its characteristics it has always been the ideal way to store wealth & purchasing power. Today people have the choice to store their savings either into worthless fiat paper money, dangerous bonds and other Bank manufactured/controlled investment products which they can buy off-the-bank-shelves....but more and more they prefer to store their wealth in barbaric Gold and Silver. If Bankers did not forecast the last stock market crash (where financials/bank stocks were amongst the biggest losers) then why would one today believe their comments about Gold and Silver?

    • Unbelievable that some analysts don't even seem to know that Gold and Silver have already peaked when expressed in other fiat paper currencies weeks ago (the Gold price expressed in Dollar is in fact lagging) and they fail to understand what Fiat Paper currencies are, where they come from and where they are going to. At some point it may be better to momentarily hold on to Swiss franc, Aussies, CanDollars, SA-Rand (no Yens)...but before long ALL FIAT PAPER CURRENCIES will end up WORTHLESS.  The point of no-return has been passed! Having said this it is intellectually incorrect to compare the actual Secular Bull Trend for Gold to what happened in the 1980's: we have a paradigm shift and the constellation for Gold has completely changed!

    • Unbelievable that many analysts fail to understand that the next bubble to bust will be the Bond market: Bond are nothing more than an option to buy worthless fiat paper money and Gold can de facto never be a bubble as Gold is the ultimate barbaric money which has no counter party. It is not the price of Gold which goes up or comes down but rather the value of Fiat Paper money which fluctuates on its course to ZERO.

    • Complex societies cannot survive with expensive energy. Most people wake up in the morning and worry about the morning commute and getting the kids to school, paying the mortgage, and thinking about a new car or the next vacation...and this is simply too narrow a scale of thinking to address the problems we have....Joseph Tainter. ...more (also check our literature list for a new document)

    Saturday September 25, 2010

    • To all those who still fail to see why the world is forcing a return to that barbaric relic - the gold standard - our condolences: keep shorting and don't buy any. Gold is going to $ 1450 and much higher!

    • The Bank of Japan's intervention is Pathetic!. Central banks succeed with interventions only for so long. The yen is becoming a serious political issue in Japan with politicians facing increasing pressure from their constituent businesses for the government to take action to force a drop in the currency. Today it is better to stay away from the almost zero yielding Yen.

    • Why do we have a constitution if our leaders don't care about it!? Not only in the United States of America but in many other countries (ex. Belgium) the same is happening.


    Friday September 24, 2010 - Quantitative Easing and the Stock Markets -

    • In 2013 Greek public debt is expected to hit its peak of 150% of GDP, a level far higher than where it is now and dramatic. Add to this the FPIIGS Debt/Problems of Spain, Italy, Portugal,....and the cocktail becomes explosive. Money can be printed without limits, but DEBT is limited by definition...and the Euro won't survive Expensive energy.

    • World Stock market indexes have been updated and there is a possibility for a trend change. So far, market have been trending side ways...but this could change...off course, only in nominal terms. Important is to understand that Authorities want to avoid the Japanese scenario of 20 years of side ward trending. Important is to understand that World Stock Markets and common stocks can change trend but that the Gold and Silver shares will be the leaders. The Footsie is a canary in the mine for the world stock markets and the outcome of our published Candle chart is very important of what we expect and for the future of ALL world stock markets and the Hyperinflation cycle.

    • The Gold and Silver mines indexes: 3 taps and a breakout it is!

    •  To all those who still fail to see why the world is forcing a return to that barbaric relic - the gold standard - our condolences: keep shorting.

    Thursday September 23, 2010

    • Money and Capital for Dummies!? It becomes more and more apparent that practically none of the international bankers understands our present monetary system. Most have no idea how currency is created! How can anybody take the role of wealth protection seriously, much less purport to manage both money and credit, unless they can see the massive storms that lie ahead?

    • Where ever the USA goes, so goes the rest of the world. All economies are linked and because of this we shall have the greatest wealth transfer in history. Basel I, Basel II, Basel III, stress tests are nothing but a box of BS. The world has a crisis because the banking system has a crises as a result of fractional reserve banking and the creation of fiat money ...and the crises isn't over yet. The worst has to come and it will last until all of the misallocated funds are cleansed out of the system.

    • The USA created more money in the last 2 years than it did in the last 200 years! Too much money chasing too little goods always results in [hyper]inflation and propels GOLD to new records...Those who buy GOLD with Euro's are -at this time - privileged: the weak dollar offsets strong Gold...but this may not last for long. Remember that sometimes dips/weakness must be used to buy.

    • We updated the charts and did not like what we saw...the Dollar index broke an important support level and we expect that the absolute low will be tested BEFORE the Spring of 2011. Remember the Dollar is a RESERVE CURRENCY and that its behavior has and will have a serious impact on the World Economy. We also worked out a short term objective (mid 2011) for the Dollar index.

    • Check our new €-Gold objective...click here

    • The EU tried to create as much money as the UK and the USA. As a result €-Silver made a fresh record! The multi-billion dollar question is whether YOU must buy Silver or not and prefer to stay with worthless fiat paper money and negative yielding so said government and/or guaranteed Bonds. Not making your home work and listening to the wrong advisors can cost your life time of savings. Remember we have a paradigm shift.

    • We're living the transition faze towards Hyperinflation. This is the faze where savings are high because consumers 'hope' prices will come down [deflation propaganda]. As soon as they see prices won't continue to come down but keep going up, we shall move towards the next faze = hyperinflation...read more

    • Cotton has surged 31 percent this year. Cotton for December delivery jumped 1.15 cents, or 1.2 percent, to settle at 99.37 cents a pound at 2:38 p.m. on ICE in New York. Earlier, the fiber advanced to $1.0198, the highest price for a most-active contract since June 19, 1995. Cotton bottomed from late 2008 and has sustained a progression of higher reaction lows since early 2009. It has found support in the region of the 200-day MA on a number of occasions and is currently quite overextended compared to that mean.

    • These is such a supply shortage in the market that your steak will probably cost double in 2011.

    • Pension funds have more structural problems than ZERO and NEGATIVE REAL INTEREST RATES. Baby boomers are now 60 years old or older, and have started receiving pension. In the meantime, the number of people who pay a pension premium is smaller. What's more, pension premium is determined by wage, which has been on decline. So, pension special account overseen by the health ministry is having a tough time.… More outlay than income in the pension system means that they need to tap into the reserve we have.

    Wednesday September 22, 2010

    • At least we know there is a NOMINAL bottom under the Dow Jones. "Fed Statement--Will Print More Money If Stock Market Declines"... In plain English the Fed announced that they will print more money if the SP 500 declines substantially. Nothing like an explicit Fed guarantee to support asset prices. First reaction from the market seems positive with the SP 500 reversing most of its losses. Unfortunately, the stock markets will advance only when expressed in Nominal Terms and will continue to crash expressed in Real Barbaric Money. One hundred trillion Zimdollars bought nothing in less than one year.

    • "Ask Not Whether European Governments Will Default, but How and When?”

    • UK house prices have fallen for three months in a row while in August UK mortgage lending dropped to a 10-year low of $15 billion. It looks as though the UK housing bubble is finally bursting after a massive double top in the market, the classic technical indicator of a coming big drop back to previous lows.

    • New record for $-Gold and $-Silver...but we told our readers months ago this would happen. Brace for $ 1300 - $ 1450 and higher. Today's new high is not really exciting! Yet, if you were to conduct a poll on the street asking adults if they were aware that gold and silver recently traded at record prices, I would be surprised if more than 1 percent admitted knowing this information.

    • The Dollar resumes its slide....the downtrend has never been broken!  Yesterday an important level has been broken.

    Tuesday September 21, 2010

    • UK Proposes All Paychecks Go to the State First. Karl Marx isn't dead, he just moved from East to West. The West persists in adopting a system of Government control. Democracy has become an empty RED SHELL and whoever pretends this, is politically incorrect!? The multi billion dollar question is WHY does the West adopt a system the EAST has stopped using because 'they' experienced it didn't work?....more

    • Diversify your portfolio and you can be sure to end up with below average results. Most people don't know how to invest properly or invest with no structure at all. This is like putting eggs in a basket without any bottom.  It doesn't make any sense to invest in a weak currency like it doesn't make sense to buy a stock of disadvantaged sector just because some analyst puts it on a buy list. After asserting the currency risk, it is important to decide which instrument is best and safest (cash, bonds, stocks, real estate, commodities, gold) and last but not least a choice has to be made about the sector one can invest in. Only when this home work has been made you can select a stock, bond, commodity, currency, real estate, etc...to invest in.

    • Parents won't have wealth to pass on, report says Future generations should not expect to inherit wealth from their parents following the ravages of the worst financial crisis since the 1930s, a new report has warned...more

    • Many financial newsletters cluster. The same stocks/bonds are advised and often there is no logic strategy in what they advise. An actual example is the Cement industry which will suffers because of the Worldwide over supply of Real Estate - even in China (see our publication of last week).

    • No inflation? so how do they explain that the Reuters Commodity index rose by 20% between June and September? An increase of 20% in 4 months time is an increase of 80% on a yearly basis. Still believe we have deflation? Our charts in the subscribers' section will convince any disbeliever that he is wrong...more

    • Now that $-Gold is on the move, all fancy names jump on the wagon: Merrill Lynch, Fairfax IS, UBS and Credit Suisse...a bit late they are...Goldonomic readers jumped on when $-Gold was trading at $ 250 - $ 300 and have best seats.

    Monday September 20, 2010 - So what!? a new high we had for $-Gold...but an all time top we had weeks ago for €-Gold and £-Gold...

    • During the transition to Hyperinflation the savings rate always increases momentarily because people "think" prices will fall again. They save more because they think they will be able to buy cheaper later. At a certain point however they realize prices will continue to rise and decide to exchange all of their paper money for goods as soon as possible or NOW: a hyperinflation is born.

    • Hopefully the market will give investors a decent ultimate opportunity to buy Gold and Silver mines. Once shorters have to scramble to get out of positions, this sector can be surprisingly strong. We had an important BUY signal (and several text book examples) and you had to be blind not to see it. Minefinders is one of them. Anglo Ashanti has just closed out their $1.58 billion losing hedge book as gold reaches for a new high. Better check the charts one by one to get an idea of what this market REALLY looks like!...more

    • Last month we advised our Subscribers to BUY Gold and Silver stocks, but also Juniors.

    • What's wrong with most of these money managers and Bankers? By advising to buy Car manufacturers (sometimes they ironically advise to buy Financials/banks), they show they haven't got the slightest clue of how to invest in the 21st century. Interesting is also that most don't even talk about Gold and Silver mines?

    Saturday September 18, 2010

    • Fiat Money has no place to go but Gold.  "If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it." [Alan Greenspan]. Today, enormous amounts of wealth are held as "someone else's thoughts of value" not value itself. In this day, as not in the past, the loss of paper value as a concept will destroy the very foundation of wealth that this economic system is built on. This drama has started and is well underway!

    • Gold is the only currency that cannot be debased, debauched, polluted or defiled by men. It is, always has been, and always will be, a store of value, a preserver of wealth and a securer from the plundering of Central Bankers.

    • Gold and Silver mines are working their way through an important resistance line. Buy the breakout! It occurs that what we have written days and months ago has become reality and that there is little we can add. Except for those who accumulated Gold and Silver stocks and Juniors to buckle in, sit tight and enjoy the ride. Just to give some examples: Silver Wheaton was checked as breaking out 4 weeks ago; Randgold is yellow tagged and has 4 *'s!

    • Though Japan, Brazil and South American countries have been buying Dollars in an effort to depreciate their currencies, the selling pressure of Dollar denominated Bonds and Dollars has been even larger.

    • Most Commodities (Cotton, Coffee, Cacao) sit in a solid Bull run. Prices are NOT rising because of Globalization (such would be illogic) but rather as a result of (hyper)inflation. The price of Cotton (+25% in 2010) has reached a 25 year historic high.

    • Last Friday 6 banks had to be closed in the US: Maritime Savings Bank, West Allis, WI Bramble Savings Bank, Milford, OH  The Peoples Bank, Winder, GA  First Commerce Community Bank, Douglasville, GA  Bank of Ellijay, Elijay, GA  ISN Bank, Cherry Hill, NJ

    Friday September 17, 2010 - we told you it wasn't a good idea to travel to the Desert this Summer and that those who have no Gold and Silver MUST buy the dips...! Don't even dream of trading this market...

    • Silver shines better than Gold! What is the difference between a Candle with a long Bullish tail and a Candle with a long bearish tail? We published a chart as an example in the Silver section...click here. Having said this at this time we're in for more than we asked for as $-Silver is working its' way through an important neckline. Charts inside the Gold section clearly shows the change in trend channel for Gold (and for GLD).  A ballistic move to $1650 is now within easy reach

    • EU Commission Proposes Tough Reform on Derivatives and Short-Selling. On September 15, the EU unveiled tough regulations to control derivative trading and restrict short-selling. For the first time, standardized contracts will be required to be cleared centrally. OTC contracts—bilateral contracts between buyers and sellers—will have to be reported to data banks or “trade repositories,” and this information will be available to the regulators. Subject to approval from the member states and the European parliament, it is expected that these reforms will be put into force by the end of 2012.

    • Japan buys Dollars - Yen falls. Colombia buys Dollars - Peso falls....or what we see is a race for the cheapest Fiat paper money. Any Central bank (Japan, Brazil, Peru - the yen) who can afford it is trying to pop up the Dollar and make their currency cheaper...more Japan needs to take more steps to shield exporters such as Sony Corp. and Honda Motor Co. against a strong yen after intervening in currency markets for the first time since 2004, said company officials, who welcomed the move. This is a world upside down: not a race and interventions for the strongest, but for the weakest paper currency...give it some time and they ALL will be worth ZERO!....is this the reason why the Euro has been rising against the Dollar?

    • Fractional Reserve Banking: Do you know whether  "your" Bank Deposits really "your deposits" and readily available or have these deposits been used by your Bank as a credit for somebody else? In the UK Douglas Carswell MP yesterday delivered a superb speech in support of his eagerly anticipated Financial Services (Regulation of Deposits and Lending) Bill, introduced as a Ten Minute Rule Motion. ...click here to upload or read the complete article in pdf

    • Checking on our Model Portfolio it reminds us how difficult it is to do better than GOLD/SILVER even if one invests in Commodity stocks (Oil and Gas) and Gold and Silver mines. Looking back to the figures of the last 2 years, the Model portfolio advanced when expressed in Euro's, shows a status quo when expressed in Dollars BUT the number of GOLD OUNCES has decreased. In other words, the performance of our portfolio would have been A LOT BETTER if we had invested the complete amount in Gold.

    • Lies, lies and damn lies. Interviewed this week by The Gold Report's Brian Sylvester, International Forecaster editor Bob Chapman remarks that all U.S. government economic data is bogus and that "it has been the official policy of the U.S. government and the Federal Reserve and other central banks to suppress the price of gold and silver."

    Thursday September 16, 2010 - The bad news is that once the hyperinflation starts, three eggs will cost $ 100 billion.

    • Whether or not $-Gold breaks today through $ 1270, the days are close we shall see $ 1300, $ 1460 and much higher. The technical indicators for  Gold (and Silver) have corrected somewhat and are out of the overbought zone. Hence the technical correction could well be behind us. I warned that such might happen and leave short term traders with empty hands. Dips must be used to add to your positions and it is increasingly dangerous to sell the tops. My medium term objective of is $ 1450 is clearly confirmed by different charts...more

    • Gold, Silver, Gold and Silver shares will stay in a Secular Bull trend independent whether we have Deflation or Inflation. The Bad money drives out the Good money (people try to get rid of paper money and bonds by buying Gold) During the period from 1929 to 1936, gold doubled and gold and silver shares rose over 500% in a deflationary period. Between 1978 and 1981, during an inflationary recession the average gold and silver
      share appreciated 40 times the price of gold bullion. 

    • Last call for Bond holders! Who would want to be in Bonds (bearish island reversal) while we witness the greatest gold and silver bull market in history? This certainly is a once in a lifetime opportunity that has been proven for the past 11 years. Corporate bonds ain't any better.

    • Last call for European Real Estate holders! Who wants to be in Real Estate when Wealth taxes will be implemented all over the EU, when interest rates will spike up under pressure of the hyperinflationary depression!?

    • Central banks are populated by pompous morons who believe they can control the world, when the best thing they can do is hope for the last Viagra shot to result in priapism. Band of Japan's intervention is a symbolic capitulation,  and the beginning of the end for the Keynesian system. Rejoice...Those who keep holding on the Keynes and his erroneous principles will pay a high price for it.

    • Anecdotal evidence is always wrong and leads the Herd always in the wrong direction. A few years ago the market was saying Greece sovereign credit was basically as sound as Germany’s, and that lending 125% of a home’s value to sub-prime borrowers was perfectly sensible. Many analysts wish to see the West walk the Japanese path. A visit to Tokyo however won’t show that the “precarious proletariat” without job security or social security entitlement – has mushroomed to 34% of the labour force; that suicide is now the leading cause of death among young men aged 20-44; or that 56% of 15-34 year olds need outside supplements to their salaries to cover mere living expenses (thanks to the artificially low interest rates). Neither will it show that young men aren’t the only ones who need help to pay for the basics: the Japanese government itself no longer manages to cover its bare necessities with revenues and must borrow just to cover debt service, social security and education. Well done JM Keynes, well done Mister President....

    Japan and the graph of Tax revenues don't even cover expenditures for Social Security, education and debt service. Such is a Real Life proof of Jim's Formula. Figures for Western Europe and the USA are without any doubt growing in the same direction. Japan could be the first to teach the rest of the world what a developed country bankruptcy via hyperinflation would look like.


    Note the break away gap of Gold expressed in Yen and the intervention of the Bank of Japan which confirms our bearish flag!!! [note that we kept our bearish vision for the Yen]..click here

    Wednesday September 15, 2010 - The good news is that once the hyperinflation starts, we will all be Billionaires.

    • IMF fears 'social explosion' from world jobs crisis.  America and Europe face the worst jobs crisis since the 1930s and risk "an explosion of social unrest" unless they tread carefully, the International Monetary Fund has warned. The labour market is in dire straits. The Great Recession has left behind a waste land of unemployment...more

    • Karl Marx and Communism doesn't work. The USSR and China learned this the hard way in 1989. Cuba and Fidel Castro are learning it NOW. Will the EU have to fall apart before their political leaders understand this?...more

    • John Williams Sees The Onset Of Hyperinflation In As Little As 6 To 9 Months. My view is that Hyperinflation can start at any time between now and the end of 2012. The hyperinflation will probably start in the USA and we have yet to see how fast it will spread to Europe and the UK.

    • Triple top breakout for $-Gold. The line in the sand has been drawn. Assuming the breakout level is confirmed, we're aiming for $ 1300 (see our technical objectives), $1450 and higher. Gold is NOT a bubble and we are just living the baby steps of this bull market.

    • Fresh breakdown of the Dollar! Watch out as the Dollar can break through its 200 day Moving Average.

    Tuesday September 14, 2010

    • GLOBALISM cannot survive without cheap energy...more This is why Uranium and Uranium mines are an excellent investment.

    • No Complex society survives expensive energy. History itself proofs this statement is correct. This is why the Roman Empire collapsed, why during the depression of 1830 Belgium separated from The Netherlands (invention of the steam locomotive running on wood) we had WW I (transition from steam made with wood to steam made with coal) and WW II (transition from the steam engine to the liquid energy (oil) engine. 1989 the USSR and China went bankrupt as a consequence of the first Crude Oil crisis.  For the same reason the EU will not survive (for more than 5 years), a country like Belgium will break apart (Czechoslovakia fell apart in 1992)   and a powerful nation like the USA could secede...more.

    • Fractional Reserve Banking it remains: Authorities have a panic fear for a RUN on Banks. The BASEL III regulations stipulates 'more reserve capital' must be held by bankers. The Basel agreement gives banks 9 years to comply with a 7% reserve level, or a big joke it is. Minimum capital requirements are regulated by the prior BASEL regulations. Credit default swaps and derivatives however play an important role in this game as junk bonds can become a triple A when connected to a credit default insurance...more.

    • As always our charts in the Financials' section are the ultimate unbiased correct answer to yesterday's static.

    • A new high we had for $-Silver...but we don't like the long tail on the top.

    Monday September 13, 2010

    • If our Founding Fathers were alive today, what would they think of America? Surely they would be very proud that the United States stretches from the Atlantic to the Pacific and has built some of the most amazing cities that the world has ever seen. They would probably be surprised that the country they founded went on to become the greatest economic machine in the history of the world, and they would be absolutely astounded by things like our interstate highway system and the Internet. However, there are quite a number of things that they would be horrified about as well. The fact that over 40 million Americans are dependent on the federal government for their daily food would be deeply disturbing to our founders. Also, the fact that the U.S. government has accumulated the greatest mountain of debt in human history would be incredibly distressing to George Washington, Thomas Jefferson and the rest of the founders. But perhaps most of all, our founders would be absolutely disgusted that the land where Americans could once be free to pursue life, liberty and the pursuit of happiness has become so tightly regulated and controlled that Americans dare not even squeak without the permission of the federal government....more

    • "Evet" In Turkey, Erdogan won (as expected) the referendum. This will allow him to change the constitution as proposed. Unfortunately I don't think this is positive for Turkey. Generals and judges who see themselves as the last line of defense against encroaching Islamism have frequently clashed with the prime minister since his party came to power in 2002. The measures undermine the separation of powers. The leader of the main opposition Republic People’s Party, Kemal Kilicdaroglu, was unable to vote in Istanbul after failing to register a change of address!?...more . The international press, the EU and the US are hailing the result of the referendum but nobody is getting to the point analyses and mentions what exactly this change will exactly bring . Unfortunately the Western MEDIA explains the result of the referendum in a DIFFERENT WAY!  They don't even get to understand what is happening. 2001 Turkey managed to control a hyperinflationary depression.

    • Is this WHY Bankers have developed an investor's profile questionnaire? Anybody who decides to invest with a bank [personal Real Estate investments are an exception] must complete it!? This is absolutely ridiculous and gives a false sense of security. American Real Estate investors who bought in 2006 lost 60% of their savings in just 3 years time (or 20% y/y). European investors who invested in Bank shares (Fortis) lost two arms and two legs in 2008 (some even lost their lives as the share plunged from € 31 to € 1). Having said this, Bank & Insurance stocks are still extremely dangerous (most banks are technically bankrupt) and so are Insurances and Re-insurances.

    • Silver has been strong but needs to break though $ 20,50 AND positively confirm it. I have no doubt that at some point in the not so distant future this will happen. In the mean time it is largely the private saver which is buying Silver and the Commercials which are selling. I suspect that the creation of fiat money and the incorrect signals which are sent to the market are part of the play ...check our candle chart

    • Each time we write OVERBOUGHT one must prepare to BUY...and this is what we see on the short term chart of $-Gold.

    Saturday September 11, 2010

    • The Herd is ALWAYS wrong! Not easy to explain WHY the Belgian Real Estate bubble will burst and for the (potential) real estate owner extremely hard to understand WHY the price of Belgian real estate can and will fall by at least 60%. The Belgian real estate cycle is lagging on the American cycle by about 2 to 3 years. The origin of any real estate bubble is fractional reserve banking, the creation of fiat money out of thin air and the misallocation of these funds.  Misallocation we have as soon as supply is not regulated by an increase in demand but rather by a self feeding speculation...click here for more There is no doubt that the planned Asset taxation (2012) will break the back of the Belgian Real Estate market in case another event didn't. Having said this, why is it so hard to understand something is very wrong when an apartment costing € 200,000 in Belgium sells for only € 20,000 in Florida?

    • 64.5 Million Empty Flats In China? 64.5 million flats in China reported zero energy consumption over a six month period, meaning that no one is living in them. Xie estimates the value of real estate held for speculative purposes is around 15% of China's GDP. Furthermore, if we assume only half of the 64.5 million flats are being held by speculators, that would represent 20% of all urban housing in China. If this is not proof of a housing bubble in China I don't know what is.

    Friday September 10, 2010

    • Zimbabwe Central bank to fire 85% of its staff. Fractional reserve banking results in the creation of Fiat Money and misallocation of funds. Government officials (police, army,...) and Bank Employees are the first to profit. Their number has to be reduced substantially after the climax of the economic and financial crisis. Zimbabwe's economy, which has been facing difficulties over the last years, is slowly recovering after the formation of a unity government by President Mugabe in February 2009. The unity government off-loaded the worthless Zimbabwe dollar introducing multiple currencies such as the US dollar, Euro and SA Rand into the economy. The unity government has been battling to secure lines of credit from international banks but no major loans have been secured. Beginning of 2009 ALL Debt was forgiven (Bonds became worthless)

    • Elementary Mr. Holmes, it's the Zimbabwe effect: in August and September 2007, even though the wheels were clearly falling off the global economy, the S&P500 still managed to rally 15%! We may or we may not not have a second down leg. Best case scenario markets will grow sideward until the Hyperinflation kicks in...and I am 100% sure Hyperinflation we shall have.

    •  When you walk into a bank, for example, no one is going to sit down with you and say ‘hey I think you should protect yourself from a depreciating currency, let’s talk about gold allocation and taking some options to exchange your Fiat paper money for Real Assets which will survive the Hyperinflationary depression. No, instead you get two limiting choices that are jammed down the throats of millions of customers: the generic savings account, or the generic checking account, the generic common investment fund, etc....The trouble is, limiting choices are not designed to help you survive when the system collapses.

    • Belgium sees a record of new Mortgages. Each day Financial institutions sell  about 300 new loans at teaser rates of 3% to 4%. The funds are used to buy extremely over valuated Real Estate (remember that in Belgium  we have a real estate bubble which is lagging to the US bubble which busted in 2006) by people convinced the Belgian Real Estate prices will grow all the way to Heaven... a painful disillusion it will be once the Belgium Real Estate bust in a American Fashion. For € 200,000 it is very hard to buy a decent home in Belgium...but in Florida (USA) it buys almost 10 Condo's (apartments).

    • There is a new European credit collapse. Credit default swaps have returned to the worst levels of the crisis for many of the PIIGS. This morning the Anglo Irish Bank is being divided up because it was about to collapse. In other words, the scenario of us ending the calm in the eye of the storm and moving to sovereign debt crisis is on track in Europe...more

    Thursday September 9, 2010

    • Thinking of taking the kids to Disney in Orlando for XMas? Add € 15 per head to your traveling budget for the trip the USA for the ESTA approval number. What is wrong with politicians who keep doing the opposite of what should be done? Instead of charging € 15 per head they should offer a bonus to any tourist deciding to spent his Holidays and money in Florida (USA). Not hard to understand what a relief it would be for the local economy and Real Estate Market if tourists started to buy a second home in Florida. After all those who can afford such will also spent money on other items... Real Estate in Florida is a steal and the more people know about it, the more will be sold.

    • As we move deeper into the Depression Social unrest will increase. French President Nicolas Sarkozy is feeling the wrath of the people: hundreds of thousands protested against his pension reform on Wednesday and trade unions brought public life to a standstill. The showdown amounts to a test of Sarkozy's power. Traffic jams in the streets, chaos on the ring motorways that circle Paris, cancelled intercity and commuter trains, erratic connections on the Metro: French trade union calls for mass protests against the pension reforms planned by President Nicolas Sarkozy elicited a powerful response on Tuesday. The Interior Ministry estimated that up to 450,000 demonstrators took part in 114 rallies by midday...What we see in France will also happen in other countries and is a direct consequence of Jim's formula.

    • France is not the only country on the sinking Titanic. Portugal, Spain, Italy, Ireland, the UK, Belgium, the Netherlands, the US and Greece are all on deck playing: "Tout va très bien Madame la Marquise".

    • Greek interest rate spreads are back at crisis levels of just before the EMU bailout fund. After 1000 Bn USD bailout effort, we are back at square 1. There was a $ 1000 bn waste of Money and it is only a matter of time before Greece defaults on its debt. Bond holders are warned!

      The subscribers' sections of the Euro and Dollar have been updated. The fact that Russia and China will start to trade in each other's currencies [the world's second-biggest energy consumer and the largest energy supplier] will diminish the dollar's role in global trade.

      China may start trading its currency against the ruble within weeks, three bankers with knowledge of the matter told Bloomberg, and sent out a document last week allowing lenders to apply for ruble trading licenses, one of them said. Russia's Micex Stock Exchange is making preparations to trade the ruble against the Yuan in an initiative that has the backing of the country's central bank, Ruben Aganbegyan, the head of the bourse, told reporters at a conference in Moscow today.


    • The subscribers' section of the Yen has been updated with less static than fashion in the financial media.

    • Crude Oil? Bullish engulfing pattern and long bullish tails...more

    • Not a lot of action in the sector of the Oil shares...but positive consolidations and some buys.

    Wednesday September 8, 2010

    • The Keynesian cure never worked and will never work. The only thing it succeeds in, is in making bubbles: the tech.com bubble, the housing and credit bubble, the crude oil and commodity bubble and the Government debt (Bond) & currency bubble.

    • We don't like what the charts show us in the subscriber's section of World Stock markets. Do we have a small Upflag (bullish) or a larger bearish HS formation for the Standard and Poors 500 Index and the Dow Jones Industrials? What is the danger of Evening Stars (on the monthly) and Bearish Engulfing patterns on the (weekly) candle charts? If our charts are right, stock market indexes will fall out of the present corrective upleg and slide down as much as they crashed 2008/09. Better find out before it's too late.  Check these important updates.

    • Yesterday we had an all time high of $-Gold...but we have seen nothing yet!...check our objectives for Gold now. We're ABSOLUTELY against trading Gold, Silver and Gold and Silver mines. What happened yesterday clearly confirms our vision is correct.

    • Greece Sees €4 Billion (2%) In Deposit Outflows In July. Outflow troubles continue for the time bomb in Europe's periphery, Greece, whose second default is approaching. The central bank has just reported that in July household and business deposits declined from €216.5 billion to €212.3 billion: so much for the ECB's presence inspiring confidence. Like Barosso explains so well, the EU members will sink together.

    • Technically, there is room for a positive correction of the Dollar Index to .85

    Tuesday September 7, 2010

    • We are adding long term charts to the subscriber's section. Each chart also shows the value of the index in Real Barbaric money. Left is an example for the Japanese Nikkei.

    • Those who are still believing we have deflation and those who still believe Bonds are safer than Stocks and Barbaric money MUST check the charts in our commodity section.

    • Silver did not loose because of the Better than expected US job report but because it is OVERBOUGHT. Elementary Mister Holmes. Had it not been for the US Job report, the Financial Media would have found another explanation.

    • ECB (European Central bank) buys € 173 million Bonds or € 30 million more than 2 weeks ago. Earlier this year the ECB bought € 25 bn to avoid a crash on the European bond markets. Quantitative Easing in its purest form!

    • Islamic gold Dinar (see Tuesday August 12) gains ground in Malaysia: Malaysians are embracing gold dinars which were introduced last month by the northern state of Kelantan to promote usage of Islamic currency as an alternative to paper money, an official said Saturday...more

    Monday September 6, 2010 - Labour day and Bank Holiday in North-America. As from now on it becomes extremely important to follow our advised strategy carefully in order to avoid your financial disaster. Remember "it" all can happen at internet speed (extremely fast)!


    • By experience we know that this kind of Media publications-picture forecasts exactly the opposite of what they advocate (and we have decennia of experience). The article claims that we are living the end of the Equity markets and the Bond markets will be far better than stock markets. We have on several occasions explained that the Stock markets can prosper in nominal terms only because of Quantitative Easing and that the Bond markets are about to crash. Today however it is too early to time "when" the bull run will start. We will advice our subscribers in due time. At this time we have no serious indications that a trend reversal is in the make...more

    • Equity investors should be able to outperform both cash and government bonds IN NOMINAL TERMS over the next decade. The developed economies are in trouble and they are unlikely to improve anytime soon  unemployment remains stubbornly high, deficits are spiralling out of control and debt levels are unprecedented.  At first glance, things do look dire but we still believe that nominal stock prices will (when time has come) continue to rise. Having said this, we have no doubt that Gold and Silver will take off exponentially before Stock markets become bullish again.

    • Harrisburg, Pennsylvania is one of the first cities to default on its Bond Obligations. The capital city Pennsylvania is broke and will be skipping this month's multi-million dollar bond payment...more

    • The Aussie remains our favorite Fiat Paper money...more To hold on to Dollars, British Pounds and Euro's is extremely dangerous.

    • Financials look bad, bad, bad...more

    • If gold closes clearly above $ XXXX basis December, it's then ready to soar. For Silver the second phase of the bull market is alive and well! . Above $ xxxx, we could see silver really take off. This will happen as the physical market clashes with the paper market....and this could well be happening NOW as the Silver Panic Intensifies ... NO DELIVERIES!"

    • Copper is the barometer for world growth. It's more than four-month high today is spying the global economy is looking better, and it looks to be leading the stock market higher. Copper is very strong above $3.25 and it's next resistance is $3.63."

    "For the under exposed, I would be accumulating minimum up to one quarter to one third of what you might think of as your intended portfolio proportion for gold, gold miners and even silver miners."  


    note: what we live today in Belgium is exactly what we forecasted weeks ago....

    Friday September 3, 2010 - a garbage bin where no garbage is allowed!?

    • Regulation to nowhere. This is the game in Europe and Belgium. There are garbage bins along the streets but it's forbidden to use them!? There are so many traffic panels one doesn't know which one to follow. City centers are a permanent construction field. One alteration is barely finished or a new one starts!? Traffic police has a zero tolerance (safety has become secondary to the taxation power of the fines). In France the use of motorways costs an arm and a leg... 

    • Capital preservation is more important than capital gains. Overall

    • Gold has resumed its uptrend...but Sterling Gold is overbought and a small correction is plausible. Don't forget to use the dips to BUY!

    • Interesting candle chart for the Euro/Dollar...click here

    • Looking at the chart of Gold in South African Rand and Yen it is clear that there is only so much room for a correction.

    • Important is that we may have a false signal of the Yen expressed in Euro...more

    • GoldCorp is one of  the Gold stocks listed in the Gold and Silver mines section. Subscribers know we paid special attention to Goldcorp. The co. has announced it acquired Andean Resources for $3.6 billion. Those who understand this phase will make fortunes taking positions in companies that will be acquired during this phase...more

    Thursday September 2, 2010 - Gold and Silver overbought...we could get a small correction this coming month...an ultimate opportunity for late comers.

    • Today it's Hello Mr. Goldfinger and Good-bye Bond. Not 007 James Bond but Mr. Bubble Bond. Last Wednesday British 10-year gilts fell to a record low of 2.84 per cent, while US T-bonds are at 2.5 per cent and German bunds 2.09 per cent. This autumn is the last hurrah for Mr. Bond. As equity markets crash the rush into bonds will accelerate. The risk of holding bonds rises as the bubble grows. The perceived safety of bonds becomes a death trap. British bond holders are already in negative yield post-inflation, and if the pound devalues as expected then this is clearly not a place to be invested. Mr Bond lives to fight another day but not for much longer.

    • US Treasuries break down and the Dollar breaks down. We clearly have a correlation between the Dollar and the Treasury market.

    • Euro-Gold follows EXACTLY scenario number 3 on our €-objective chart!...click here to see the chart

    • Ascending triple top breakout of the Swiss Franc. Don't stay put...it's five to twelve!  High time to move out of the Dollar but also out of the Euro. Authorities expect (and prepare) for a second financial crash.

    • Silver Producers Enter Profitable Phase. Such has been visible for some time now. Silver shares (Hecla Mining) have been doing extremely well.

    • In Florida a Condo (Apartment) in an upmarket area costs less than a medium sized car. Remember to BUY when the media scream the end of the REAL ESTATE market is near....more

    Wednesday September 1, 2010

    • Those who followed our advice and converted Euro's and Dollars into Australian Dollars, Canadian Dollars and even in Swiss francs have been acting correctly. They must not forget that Australian Dollars and also Swiss francs are also FIAT PAPER MONEY. Details and updated advice inside the Subscriber's section: our charts  leave little room for misunderstanding. Important is to understand that Capital transfer in and out of certain countries (EU) will become regulated and that it is highly unsafe to keep i.e. Swiss francs in an non-Swiss bank account.

    • The Sterling or British Pound is the greatest example of the negative power of Politicians and how they can destroy a country's currency. Today there is not a lot left of what once was "The British Empire"...and it ain't over yet!

    • The days are numbered where you can move capital freely out of your country. Currency exchange controls we had in the past and currency exchange controls we shall have again in the near future! Those who don't make preparations NOW before it's too late, will be stuck in a similar way South Africans residents are stuck (capital export is controlled. Restrictions apply and it is only possible under certain conditions) [Personally, I experienced exchange controls in Belgium, France and Spain AND the subsequent currency devaluations of the Belgium franc, French franc, Peseta and Lira AFTER Authorities formally affirmed there would be NO DEVALUATIONS].

    • The 1929-1933 Depression saw in early 1930 a 50% bounce of the Stock Markets as investors thought the worst had passed .

    • There is still this misguided belief Bonds and Government bonds are safe (we know they are extremely dangerous) and many investors intend to keep them till expiration when worst comes to worst. They are overlooking the fact that a hyperinflationary depression and a debt moratorium will simply kill any residual value. [In Zimbabwe - 2009 ALL DEBT was forgiven]

    • Gold is on the cusp of a parabolic move underwritten by physical shortages. Central/gold banks can simply NOT longer supply the amount to balance supply and demand. Mine production continues to stagnate at best.


    Goldonomic, Florida, USA - +1 (772)-905-2491