Banksters they are and the nasty role they played and still are playing
in this depression will not go unnoticed by the history books:
fractional reserve banking, uncontrolled bank manufactured financial
products,
the repeal of the Glass–Steagall Act of 1933 under President Clinton, ....JP Morgan head Jamie Dimon gets public smack down from
French President Nicolas Sarkozy.
Nicolas Sarkozy told the
Manhattan moneyman that bankers made moves that "defied common sense"
and harmed millions of people around the world....more
If we may
believe the updated
Juniors, the correction of the Gold
and Silver sector may be coming to an end. Many candle
charts show reversal patterns (only visible on the short term candle
charts) It's virtually impossible to time in- and out trades
during an ongoing primary bull market. Usually what happens is that the
trader has moved out of the market just as the bull trend resumes.
Months ago
we wrote that Juniors will offer better profitsthan uncontrolled and unregulated bank manufactured products:
.Options, Turbo's, Futures, etc...
Once debt
is monetized, hyperinflation starts: The U.S. national debt of $14.1
trillion is at an unsustainable level, at more than $170,000 per each of
the over 81.6 million U.S. families. The U.S.
Treasury, however, reports debt on a cash basis so it does not take into
account unfunded obligations for entitlement programs such as Social
Security, Medicare and Medicaid. According to Shadowstats.com,
the total debt on a GAAP basis from 2002 to 2009 was on average 6.4x
greater than the debt on a cash basis. Applying this same
methodology equates to total national debt of close to $1.1 million per
U.S. family today. To make matters worse, in 2009 nearly half of
American households paid no federal income tax; so with only half of
households paying taxes, the national debt burden on a GAAP basis
could be over $2.0 million per tax-paying family. This is
clearly unsustainable and likely past the point of no return.
Saturday January 29, 2011 - latest Money supply
chart - see how the line starts to curb upwards!
Inflation is a more than proportionate growth
in money supply. It already is ALL over the Western World...Price
inflation is a consequence of this growth in money supply AND lags.
Today money printing is called TARP1, TARP2,
Quantitative Easing 1, Quantitative Easing 2, Bailout 1, Bailout 2,
Central banks buying Government bonds like there is no
tomorrow.....Bernanke said he wants to generate some inflation but with
these amounts of printed money he'll get a lot more than what would make
him happy. With $ 110 billion the US is printing each month, they
will get a lot more than what they ask for.
Standard
& Poor's downgrades Japan's Sovereign debt. We
told you Japan would rot to the core! The yen is nothing more than an
instrument to park Fiat Money for a short period of time.
Japan is approaching a debt to GDP ratio of nearly 200% or Japanese
authorities are spending ¥ 2 for ¥ 1 of
economic activity. The recognition that Japan is in deep trouble
is critical as well as the fact that there is NO PLACE to hide except
for Gold and Silver. [compare this to the debt of other
countries]
Gold's
open interest numbers for 25 January collapsed by 82,000 contracts: a
14.02% reduction from the day before. THAT'S HUGE!
Such can be the result of a closing of some straddle/hedging positions
but this is certainly not negative for the Gold market. Add to this the
huge liquidation of Gold ETF's and the actual correction and we start to
have a solid base for a new bull run.
The
Authorities are there to help you!? Since the
government took over Fannie Mae and Freddie Mac, taxpayers have
spent more than $160 million defending the mortgage finance
companies and their former top executives in civil lawsuits accusing
them of fraud. The cost was a closely guarded secret until last week,
when the companies and their regulator produced an accounting at the
request of Congress. (sickening it is). With the Quantitative
Easing program the US is buying $ 110 billion per month of US Treasury
paper...but these injections fail to reach the consumers.
The result
of all this new money creation is a Commodity index which has broken all
previous historic records. As the authorities keep
creating money and increase debt in a vain effort to kick start the
economy they will land themselves into hyperinflation in no time.
Thursday January 27, 2011 - Tunisia seeks arrest of ex-leader -
( Ben Ali won't be the last one which will have to flee) and
Egypt is in a state of revolt. Authorities are unable
to quell to protest and don't know how to reach (off course they don't,
they are a bunch of idiots living in Ivory towers and they haven't seen
coming what we have been talking months ago)
What we now see all over
the world, financially and politically is a prelude to what will come
after the Hyperinflationary depression climaxes: a new World War.
Have you all forgotten your History classes? Tainted as
they are, they still provide some objective lessons. History also
teaches Gold and Silver always comes in handy during Wars.
The orchestra keeps
playing in the Oil
section.Occidental petroleum is (successfully)
testing its a breakout level. Be aware that even though Oil stocks are
often quoted in Dollar, these are 99% of the time NOT depending from a
weak or strong Dollar. By buying an Oil share, you at the same time move
OUT of the DOLLAR. The charts of Total Oil expressed in Euro is a good
example if you compare it with the chart of Total Oil in Dollars.
Ever since we advised to
buy Gold (and Silver), this investment instrument which doesn't
yield, is seen as Barbaric and useless has gone up by almost 20% per
year....and the game isn't over until the Fat lady sings! What we see now however are the
DIPS we are talking about and this could well be the last time this year
you could be able to buy Gold and Silver so cheaply.. Having said this
we have further indications a bottom could be near and it seems the ABC
correction could be over. [check
the short term candle of HUI in the Gold and Silver shares section]
Wednesday January 26, 2011 - There is NO food for the Algerian children
- and there are 25 more countries where similar problems can unfold
soon....more
Natural
Gas is a bomb waiting to explode. As usual the danger
sits in a corner nobody expects or talks about: Algeria where the
unemployment is around 25%. The global Algerian situation can be
compared to the situation in Tunisia...and it will at a certain time
also explode. Algeria
already supplies 20% of Europe’s natural gas and more than 30% of the
EU’s LNG imports
Algeria is an
OPEC member and the ninth largest crude oil producer in the world.
More importantly for this conversation, Algeria is the world’s
sixth largest natural gas producer, pumping out just over 3
trillion cubic feet (Tcf) of natural gas in 2008. At the beginning
of 2010, the country’s proven natural gas reserves stood at 159
Tcf, the tenth largest in the world, and notably, Algeria exports
some 3.6 billion cubic feet (Bcf) of natural gas each day to
Europe. On top of the natural gas flowing to Europe through pipes,
Algeria has become a key supplier of liquefied natural gas, or
LNG. In 2008, Algeria exported 711 Bcf of LNG, and 90% of it went
to Europe. And along with high unemployment, high food prices,
and little freedom, Algeria’s citizens are justifiably angry that
their country’s resource wealth is not making things better for
the average person. If Algeria’s rioters return, spurred on by
their Tunisian neighbors or by their own government’s inadequacy,
and overthrow Mr. Bouteflika in favor of an anti-European
government, gas prices could take a serious jump...more
Be aware that QE 3 =
Hyperinflation...and once this monster is released, there is NO WAY
back until the Apocalypse and it will be too late to buy Gold and
Silver.
According to where we
are right now in the Gold/Silver cycle the correction will be the
prelude to a run for the top of the trend channel...
At this time, Put positions should be closed in time as
the Bull will come back with a revenge.
Very hard to understand
some people still don't understand Gold has no alternate but to go up.
Especially when Central banks in China and Russia keep buying
important quantities. Dips MUST be used to add to your positions, not
to panic or to trade and hope to get back in at lower levels. The same
applies to Silver!
MOSCOW
(Dow Jones)–The Central Bank of Russia plans to buy from domestic
banks 100 metric tons of gold a year in order to replenish the
country’s gold reserves, Deputy Head of the bank Georgy Luntovsky
said Monday, according to the bank’s press service.
In 2010 Russia’s gold reserve increased 23.9% to 790 tons, or 25.4
million Troy ounces
Science has many
surprises. This is one:
Andrea
Rossi and Sergio Focardi of the University of Bologna announced that
they developed a cold fusion device capable of producing 12,400 W of
heat power with an input of just 400 W. Last Friday, the scientists held
a private invitation press conference in Bologna, attended by about 50
people, where they demonstrated what they claim is a nickel-hydrogen
fusion reactor. Further, the scientists say that the reactor is well
beyond the research phase; they plan to start shipping commercial
devices within the next three months and start mass production by the
end of 2011.
Rossi and
Focardi say that, when the atomic nuclei of nickel and hydrogen are
fused in their reactor, the reaction produces copper and a large amount
of energy. The reactor uses less than 1 gram of hydrogen and starts with
about 1,000 W of electricity, which is reduced to 400 W after a few
minutes. Every minute, the reaction can convert 292 grams of 20°C water
into dry steam at about 101°C. Since raising the temperature of water by
80°C and converting it to steam requires about 12,400 W of power, the
experiment provides a power gain of 12,400/400 = 31. As for costs, the
scientists estimate that electricity can be generated at a cost of less
than 1 cent/kWh, which is significantly less than coal or natural gas
plants.
Interest rates will
continue to raise and Bonds and Real Estate will continue to crash.
Last week it was Brazil, this week India and next week,
or the week after, China. Interest rates are continuing to rise in the
developing world. The Reserve Bank of India increased by a quarter
point.
World equity markets are
still in a bullish nominal constellation. In most
cases the objective has not been reached yet. Results are due for some
127 companies. By the end of the week over 40 percent of the S&P
500 will have reported. As always, the tide of market sentiment
will ebb and flow with the profile attached to the companies reporting
on the day but thus far the results have been good. Some 70 per
cent have been better than expected.
Even in South Africa the
Real Estate bubble keeps deflating. A living example
for all those in countries like Belgium, the Netherlands and France
where the Real Estate cycle is somewhat lagging and the worst has yet to
come...more
Tuesday
January 25, 2011 - Gold is about to form a meaningful low around $
1300 ($ 1320 to $ 1280)!...but we have an extremely dangerous market
constellation. In other words, it is dangerous to sell the Gold and
Silver sector today in the hope of getting aboard at lower levels.....
We have decided about a
new setup for our charts. Additionally to the Point and Figure charts
(which are the main charts) we are adding a short term and a long term
candle chart. The PF charts are displayed in full size. The candle
charts as thumbnails (click on them to enlarge).
Point and
figure charts don't have a time (horizontal axis). The years are
indicated below and the month in the charts (1 to 9 for the months
January to September and A,B,C for the months October to December). We
use 3 point reversals. A cross (figure) becomes a point (o) if at LEAST
three symbols can be plotted. This eliminates a lot of STATIC.
Our support level for
Dollar-Gold - $ 1360-$1350 did not hold. This means
the correction is not over yet. Next support levels are $ 1320 and $
1260. Our Point and Figures charts are the indicated way to try
to define the bottom of this swift correction. The bottom for Gold and Silver will be different
for each Fiat Currency. DO CHECK THEM ALL FOR A CORRECT VIEW. Expressed in Dollars our PF chart
indicates a worst case scenario bottom of $ 1290.
Puzzling however is that Gold in so many PF charts has already landed
on the bottom trendline of the Secular rising channel and/or on the 200
day Moving Average. Because of the fundamentals but also technicals one may NOT risk to SELL
the Gold and Silver sector NOW....what IF ! The correct way to handle
this correction is to use it to either INITIATE and/or to ADD to your
existing positions.
Expressed in
Swiss Franc, Gold has landed right on the
BOTTOM of the uptrend channel is a rather panicking way - (weird)...more
Expressed in Australian
Dollar, Gold can come down by a maximum of 10%...more
The US-Dollar-index is
doing exactly what we forecasted...more
and does the EURO. Weird is
that the Dollar and Gold/silver are coming down together.
Crude oil remains in a
bullish mode...moreAND so do
OIL SHARES.
Remember we wrote that this is where the music is playing at this time.
Gold and Silver
bullion may correct somewhat but such doesn't necessarily apply to
Gold-Silver shares -
Majors and
Juniors.
Don't start to rush out.....again, it's a tricky
market. Barrick (ABX) has
excellent charts which allow you to gauge the market. Check on these
before you even consider to sell. The candle chart for Newmont is an
excellent example of what's going on right now: see the huge volume!!!
Friday January 21, 2011 - What happened today on the Gold and Silver
market made me think of following:
Hedge
fund managers are social animals, just like most other active
investors.They belong to the same clubs, go to
the same dinners and conferences, share the same brokers and research
services, and view the same reports and price charts. There is nothing
new about the pack mentality which has been around for a lot longer
than hedge funds. It is normal. However hunting in packs, in an
attempt to muscle a market, which hedge funds and other large
speculators occasionally do, is obviously predatory. Having said this,
you must understand the price goes up or down because of the MARGINAL
QUANTITY which is traded on a given day.
Major crashes by principle never make the headlines in the media several
months in advance; and why Gold is cheap as chips and will go up a lot
more...more
Brace for "a perfect
storm" in Gold. John Maynard Keyes was an employee
of the British crown (to say it in a polite way) and was completely
wrong when he pretended the dollar and Treasury bonds
were “risk-free” assets and gold a “barbarous relic,” History
proofs clearly the opposite...more
El Niña and why volcanic
eruptions have a much larger impact on food prices than most people
realize...more
China and High Order
Capital Goods. Read this before you emigrate to China.
High order capital good (HOCG)
producers always suffer more than Low order consumer goods (LOCG )
producers. Because of decreasing exports to the USA and Europe, Chinese
unemployment is rising dramatically and many return to the countryside to
work on the farms...more
30 'leading edge'
indicators of the coming Great Depression 2...more
Bonds were absolutely crushed today
falling nearly two full points again in yet again a repeat of the
pattern that we have now been spectator to for the last month.
What is amazing is that
one can lay a chart of $-gold
over the chart of the Dollar and the two
markets have had nearly identical chart patterns since November of
last year. This correlation will as usual stop
existing some day in the future for the same unknown reason as it
started.
Don't forget to check
the charts of the HUI index and RANDGOLD. (Randgold
can be compared to BP - remember the saga?)..click
here
Those uncomfortable with
the price action of Gold and Silver MUST visit our
Commodity section.It will take them only so
long to be healed.
Thursday January 20, 2011 - Updated chart for €-Gold -
click here
(we have updated all our PF charts for Gold and Silver - WATCH for the
200 day Moving Averages: we're very close to important support and
reversal levels)
Very important
confirmation of the weekly key reversal of the
Dollar Index and the
Euro. Today's breakdown of the Dollar Index
confirms last week's bearish key reversal (see below) and the Euro's
bullish week key reversal. The Bar chart in the subscribers' section is
important not only because of the Bearish HS formation but also because
of the next technical objective.
The weak Dollar will have
a direct impact on the Gold and Silver sector and the American (and
World) stock markets. The odds to see a correction of
the World stock markets are increasing as the Dollar weakens and
interest rates rise.
Wednesday January 19, 2011 - Many youngsters don't even know what
a Bubble looks like -
There is NO such a thing
as a Gold Bubble and we're not about to enter an era of Deflation.
Deflation ALWAYS comes after Hyperinflation not before.
EACH and EVERY time we have a consolidation/correction of Gold somebody
comes up with this kind of idiocies! Gold will continue to climb its
wall of worry and go to $ 2000 and higher and there is not the slightest
doubt about this. It is incorrect to make fun of people who don't get
it...but this time, I could not refrain myself. 1. The argument of the
industrial use of Gold is absolutely meaningless. 2. Because of its
intrinsic value Gold will never have a dividend yield 3. Because of its
intrinsic value Gold will never have an earnings yield 4. If the USA
would sell its gold to pay for its debt, the price of Gold would
skyrocket into the 10thousands, 5. The more money the FED and the ECB
prints, the more Gold will go up (the Fed and the ECB are digging their
own grave) 6. What Soros and Paulson do has only a marginal impact on
the price of Gold 7. The production of Gold is rising marginally and
even if the World's gold reserve would double, it would only marginally
impact the price of Gold 8. Gold sentiment is not at all at a bullish
high...most people have no Gold 9. ETF's don't show any Top formation
10. What Buffet thinks is not important 11. Gold is the absolute
barbaric money and those who don't understand this, need to remake their
home work ...more
The charts of our
Juniors
have been updated and they don't tell us Gold is in a bubble either, on
the contrary! Denison mines is a Uranium mine and a
Strong Buy; High River Gold is a breakout, Axmin is a break out, ...more
There is some good news
for the energy sector. The bad news however is that
we must be very patient and that in the mean time the price of
Oil (and
Oil stocks) will continue to go up...moreDON'T MISS THIS
OPPORTUNITY!
Marathon oil has reached our objective...in
a rather spectacular way. Don't forget the drillers....
Tuesday January 18, 2011 - Bottom fishing: Which way Gold and Silver ???
UP IT WILL BE !
Bearish sentiment on
Gold and
Silver and Gold
and Silver mines is growing each day. The more
Bearish Sentiment the smaller the odds to see a further correction.
Be aware technicals indicate a further correction is plausible and can
last until late spring. 2010 was extra-ordinary and markets
may have to cool down. We warned our readers for this
last week. However I am not sure at all we actually shall see a
decent correction. The price Gold and Silver expressed in
certain Fiat paper currencies has broken through the top of the uptrend
channel and resistance is now support. Expressed in other fiat
currencies (Euro, CanDollar,
Sterling, SA-Rand, Yen, Swiss,
Aussie, Rupee,
Ruble ) the price of Gold and Silver sit in
the bottom of the uptrend channel. Having said this, those amongst you
which want to book a fiat paper profit in the hope to buy positions back
in at a lower price (such will only be possible if we do see
some correction and not an price acceleration) MUST make
sure they ONLY exchange their holdings for the currencies in our
investment table: Aussie, CanDollar, Swiss, and SA-Rand.
A good indicator for the
Gold and Silver sector is the
HUI index which
has broken out of a 27 year bullish formation and has a support of
500. Most Gold and
Silver stocks have eased back into the BOTTOM of their uptrend channel
and are OVERSOLD!. Add to this a too much, too fast and too deep we
had the last days....a potential bottom! IMPORTANT is
to check all our
updated charts in the Gold and Silver section...a
picture tells a 1000 words. Juniors will be updated tomorrow....
We have
rising interest
rates and overbought World stock markets….a correction is
due. The Gold and Silver sector traditionally
and historically is immune for higher interest rates but it always is
possible to see a correction as general stock markets retreat. Such
must be used to add to your positions.
How to manufacture a
hyperinflationary depression: (recipe by Trichet and Bernanke)
Because of the Euro the EU countries which can no more devaluate their
own currency (Peseta, lira, Belgian franc, French franc,…) are now
ordered to engage in “internal devaluation”. Greece,
Ireland, Spain, Portugal but also other EU countries running into
problems are told to reduce wages, costs, government expenditures and
budget deficits.[ Reducing Budget deficits is at this time already a
problem since Government income (taxes) are already falling
and outlays are rising because of the Recession and Aging population].
The more successful each country is at reducing wages and costs, the
heavier becomes the inherited debt load. As a result Public
Spending then has to be cut even more deeply. Taxes have to
rise even higher to service the debt of the government. As a result of
higher taxation, more capital flees the country and unemployment keeps
rising. The economies now get in even bigger problems and the
Authorities have to bail out even more financial institutions and
start even bigger incentive programs (trying to stimulate the
consumption)….
The problem of a Manufacturing machine which has fled abroad and East
cannot be solved by creating more government jobs, or by granting free
money to the consumers.
More Fiat/digital money has to be printed as more and more inflation
is generated and the effect of each injection diminishes…until we have
the Apocalypse of Hyperinflation. At this point the Herd looses all
confidence in the System, Banks collapse and the depression climaxes.
People who have been promised a lifetime job will all of a sudden find
themselves back on the street with no job and no social security.
During this process either governments succeed each other rapidly,
either there is some kind of dictatorship (Tunisia)
note:
US states and municipalities cannot print money, and so have no choice
but to cut spending, raise taxes, or renegotiate the debt. Ultimately
we expect a combination of all three. The uncertainty of this outcome
has driven down municipal bond prices and is comparable to the
European sovereign bond crisis.
We're about to find out
whether the trend reversal of the South-African Rand
will hold...more
Monday January 17, 2011 - last week saw a "weekly
key reversal" for the Dollar and the Euro -
potentially bearish $
potentially bullish €
Short, medium and Long
term preservation of Wealth. Technical Analysis
has its limits. Technical signals not always work. Sometimes they don't
work at all and sometimes the price formation lags. Short term it is by
principle always harder to nail it correctly than medium and long term.
Having said this, Technical Analysis must ALWAYS be projected on the
wall of fundamental analysis. Point and Figures charts are (this
is my experience) A LOT more reliable than Candle charts. Important is
that one must at all times look at the GLOBAL picture before
making any long term decision. A Global picture is usually given by a
larger number of Point and Figures charts.
Nero
burned down Rome so he could built a new Palace and he blamed the people
for it.We have no doubt
that Gold and Silver and the Gold and Silver
sector (major and juniors) will end up 'a lot higher' by the end of
2011. Between today and December 31, 2011 we can and we will see some
fluctuations. One may never forget that we do have Banks,
Central Banks, Plunge protection Teams ,
Gold Pools and Politicians (Authorities) which
only have ONE GOAL: to stay in power as long as possible using all the
instruments which are available. They will do all they can to keep
the people BELIEVING in worthless fiat money.
Democracy is a
contradiction. Most of the time the Herd makes
out just over half of the population; 51% is a good number. A
smaller fraction understands what is happening but because they have no
majority they cannot counter what 1% of the Authorities decide.
Most people act as a Herd
and don't BELIEVE something will happen until it is happening.
They don't even TRY to understand what is happening and/or can happen.
As long as there is food and games which keep them busy they will
do whatever the Talking Heads instruct them to do. Before and during WW
II about 3 millions of Jews were deported and sent to
extermination camps. None of them actually realized they would
be killed upon arrival in the camps. Few were clever enough to see
through the smoke curtains of the Authorities and left...Today
is not different. All those staying with fiat money will loose it
all: fortunes will be made and fortunes will be lost.
Tunisia will not remain an isolated event.
This applies to any US and/or EU
citizen:
For an EU citizen,
opening up and account in a bank OUTSIDE of the EU zone will
put you well ahead of the game. There are still NO restrictions upon
opening a Bank account in any non EU- country...as long as you pay the
taxes correctly.
For a U.S. citizen,
if you did nothing more than opened up a Canadian bank and brokerage
account, you’d be well ahead of the game. While Canada has its own
share of problems, the banking system there is in far better shape
than here, and as a “foreigner” you are far less susceptible to
government intrusions into your affairs.
Saturday January 15, 2011-
Due to currency fluctuations it is possible to see a correction for Gold
expressed in Dollar while Gold expressed in Euro continues to rise...and
vice versa.
Bottom line are $ 1360 , €
1030 and a HUI index of 500 for the
Gold and Silver sector.
[Different support levels exist for Gold expressed in
other fiat currencies]. The more the Gold and Silver sector becomes
oversold over the coming days and/or weeks while these Support levels
hold, the smaller the odds for a correction which could take us to $
1260. Having said this, the larger the actual
consolidation/accumulation zone, the more the Gold and Silver sector
will geyser once we have a break out ($ 1430).
China, contract prices at the
Shanghai Gold Exchange (SGE) ended Wednesday’s session unchanged at
the equivalent of $45 per gram – some 1.8% above London benchmark
quotes and equal to a premium of more than $23 per ounce.
Uh...no
inflation...!? All is well Madame la Marquise - People can only be
fooled for so long...the day the Herd wakes up because it is hungry,
political leaders always have to run for their lives...
Tunisian Prime Minister
Mohamed Ghannouchi has taken over the country's interim presidency amid
reports President Zine al-Abidine Ben Ali has left Tunisia in the wake
of mounting unrest...more
Remember the French
revolution: Egalité, fraternité, liberté !? Those
days saw poor harvests and an economic depression. When people were
complaining to the King and Queen (Louis XVI) there was no bread
to feed their children, Marie-Antoinette replied that they had to eat
Cake instead.
Jordanians march against
inflation
. Thousands vent anger in Amman and other
cities against government's inability to rein in prices and poverty.
Thousands of Jordanians have taken to the streets of the capital Amman
and other cities to protest against rising commodity prices,
unemployment and poverty...more
Inflation picks up at UK
factories. The costs of raw
materials at British factories rose at the fastest rate in eight
months in December, posing a headache for policymakers tasked with
keeping inflation under control...more
Energy Pushes U.S. Prices HigherCore
inflation remained subdued in December, though overall prices moved up
on more expensive oil, while U.S. industrial production posted solid
gains.
Euro-Zone Inflation at 2-Year High The euro
zone's annual rate of inflation rose above the European Central Bank's
medium-term target for the first time in more than two years in
December. Core inflation and even the Health index are rising...
Friday January 14, 2011 - Volcano eruptions ALWAYS have a negative
impact on the world weather conditions and vegetation.
No price Inflation uh...!?
The fact that inflation eased somewhat hits the front
pages of the Indian media...more
Corn
and soybeans jumped to the highest prices since July 2008 and
wheat rose after the government cut forecasts for U.S. inventories,
signaling tighter food supply as demand increases and adverse weather
hurts crops.
Production of corn in the U.S., the world's largest grain exporter,
dropped 4.9 percent last year and will leave supply before the 2011
harvest at the lowest in 15 years, the Department of Agriculture said
today. The agency also cut its estimate of the soybean crop by 1.4
percent and said domestic wheat inventories will be 16 percent less than
a year earlier.
Corn, used mostly in livestock feed, has surged more than 60
percent in the past year, while soybeans and wheat advanced 45
percent. Wholesale world food prices tracked by the United Nations
rose 25 percent last year to a record, fueled partly by rallies in
grains and oilseeds. Exports of U.S. crops are headed to the highest
ever, boosting farm income and profit for agriculture companies
including Cargill Inc. and Deere & Co.
Portugal has tapped the
market for € 600 million (you and I did not buy it,
the ECB did for you), Spain needs € 3 billion and Italy € 6 billion.
Peanuts "they" say. Hyperinflation "I " say.
We still have peak
oil and
whatever the West saves is consumed by the East...more
American Banks repossessed
1 million homes last year — and 2011 will be worse.
The bleakest year in foreclosure crisis has only just begun. Tout
vas très bien Madame la Marquise...more.
Real Estate cycles
never turn around overnight! For Belgium, France and the Netherlands
the Question is not as to WHEN the Real Estate bubble will bust (it
already has) but rather as to WHEN it will become visible to the large
public.
€ 1030 is a very important
support level for Gold...more
Thursday January 13, 2011 - We are NO PESSIMISTS, just REALISTS ! We
only publish what we see and cannot help that it is not rosy.
'Not Owning Gold is a Form
of Insanity' Gold will eventually rally exponentially
and investors who don't own the precious metal are "insane," and may be
showing "masochistic tendencies," Robin Griffiths, technical strategist
at Cazenove Capital, told CNBC.
How can some people still
sell Deflation when
Commodity markets are on fire?
The downward trend in the
Dollar is awesomely powerful.
It's vital to get yourself out of the dollar
long-term on any significant rally. Continuing to own a currency that is
going to be printed virtually into oblivion … is crazy
Wednesday January 12, 2011 - The physical demand for Gold is the only
REAL demand and it is this demand which all over the world is keeping
the Gold price steady and up. Paper Gold can only taint the real market
for so long.
2011
won't see any recovery at all and we have no doubt it will get a lot
worse! Better put those safety vests on, cause the
boat is going to be rocked beyond your imagination.
This year we will start
with a focus on Stocks, Physical
Gold and
Silver,
Gold and Silver
stocks, Energy stocks: coal, oil (don't forget to shop
for Oil shares), uranium (Denison)
and Commodity currencies. Bonds, Real Estate, ETF's ,
Bank manufactured products, common funds, Tak21, Tak23 ...all need to be
avoided. Be advised that you MUST BE EXTREMELY CAUTIOUS selecting your
stocks. This won't be a walk through the park....Once
the "BELIEVE" of the Herd in the Authorities starts to melt away this
spring, a lot of painful stuff can happen. Such will without any doubt
rock the boats of the Bond and Stock markets in an extreme way. When
such occurs - just to minimize losses - it will be better to be in Gold
and Silver and a certain type of stocks: energy stocks, oil stocks and
to have NO BONDS.
Real Estate has, even in
the USA not seen its very Bottom. More dangerous are
even the Real Estate markets of countries like Belgium, the Netherlands
and France which still haven't seen some kind of REAL CRASH situation.
Belgian Bond holders
beware. Belgium has
joined the ranks of Greece, Portugal, Spain,
Ireland, etc Belgium used to be a lovely dynamic small country known
for its beers, chocolates and good food. Politicians however succeeded
in ruining it...moreYou'll see more of this on the other side of the Atlantic
in the USA with Cities, Counties, Municipalities,...this
will negatively affect the
US-Dollar.
During 2011 it is more
than ever important to adhere and follow our
Investment table.
In case you need to keep some Fiat money on the sidelines for later
purchases, try to stay with those currencies selected by us.
What happened in Arizona
should not have happened but as usual and expected
the message Media are sending is a tainted one of dangerous
weapons and crazy people. Because poor black people can't afford to buy
guns or knives In South Africa most people are killed with ordinary
bricks The deeper we are sinking in the depression, the more
dangerous the job of a politician will become. Ask Louis XVI,
Marie-Antoinette, the last Russian Tsar - just to name some.
Having said this, it is really sickening to see the Political
commentators using this incident to push their agendas. Disgusting.
If you have no physical
Gold/Silver, you simply have NO MONEY. In 1971 you could sell Gold and
receive $ 35 in exchange for one oz. By 1980 you could get $850 and
today you receive $1360. What other kind of proof do you need?
What most people fail and/or refuse to understand, is
that Governments can print all the money they want. Today they don't
even need to use paper and ink to do so...a simple click on Enter does
the job. Frightening dangerous to give this kind of power to a
Politician! The clicking results in weird things like Dotcom bubbles,
Real Estate bubbles, ...depending where the so created funds are
misallocated. However the amount of DEBT that can be issued is far
more limited than paper money. Starting 2010 it is exactly this very
debt problem which starts to wreck the financial system and the economy.
To add insult to injury it is unfolding at a time where we're bout to
see a hyperinflation of the general level of prices as a consequence of
a hyperinflation in money supply.....
Tuesday January 11, 2011 -
Conflicting short term
signals make it still hard to clearly picture the short term.
Our subscribers' section as a whole does however give a
good picture of what to expect in the medium run.
Which kind of money will
crash : fiat paper Dollars, fiat paper Euro's, fiat
paper Pound Sterling, fiat paper Ruble? or real barbaric GOLD?
Do you mind when fiat paper money receives a temporary 10% premium or do
you simply use it to get more real money? Remember we have a paradigm
shift and this is not about making money but rather about PRESERVING
YOUR MONEY.
No inflation? one has to
be blind not to see we already had HUGE INFLATION: Tarp
1, Tarp 2, Quantitative Easing 1, Quantitative Easing 2, Central banks
are buying Government bonds like there is no tomorrow....Bernanke said
he wants to generate some inflation but with these amounts of printed
money he'll get a lot more than what would make him happy.
INFLATION IS A MORE THAN PROPORTIONATE GROWTH IN MONEY
SUPPLY.
What we still haven't seen
is the Price inflation which always comes after monetary inflation...Once
the HERD realizes the prices won't come down again, we'll have
Hyperinflation.
Monday January 10, 2011 - We have a retracement in the bull market
of $-Gold and $-Silver...bottom fishing however is never easy: Buy the
dips!
COAL prices are rising as
consumers scramble for this black gold. Weather
conditions in Australia have flooded many coal mines...more
The north African
countries are not spared from the recession. There is trouble in Tunisia
and Algeria. ..moreThe North African countries are the mini China
for Europe (HOCGood producers) and suffer because of less consumption in
Western-Europe and the rising cost of living because of the rising
energy and food prices.
The
Euro happens to be strongly oversold
but Gold expressed in Euro is still a hell of a buy.
Whatever is happening to the Euro and to the US-Dollar, we have far
better: see our investment table.
$- Gold and
Silver have been under some pressure
(especially when expressed in Dollar) but our indicators start to become
oversold...which is good.
Nothing special in the
section of Banks and Financials...more
We have been updating the
section of World Stock Markets and
what we have been writing for some months now, gets confirmed.
There is however ONE exception to the rule (so far) and
this shows what can happen in case of an accident. The section of
Real Money
Indexes was also updated.
Crude Oil keeps doing what it is
supposed to do. Our Peak Oil section
describes in detail what the situation is like. Adding another and newer
chapter would just be a waste of your and our time. Don't forget
to shop for Oil Stocks.
They are better than Bonds!
Friday January 7, 2011
One trillion of additional
debt each year is A LOT of money. Even for the USA. For those who are
becoming bullish on the US-Dollar this video clip.
Yesterday the Dollar was
stronger and Gold/Silver, Stocks and Oil weaker.
Would this in any way be connected to the publication of the Jobs Report
in the USA today?
Bonds will continue to be
weak in 2011. The question to ask is which Fiat
Currencies one must park his liquidities in and additionally HOW to
allocate these when time has come or during a correction.
Pigs get eaten: adding
France we already changed PIGS into FPIGS. And FPIIGS
it in fact has become since Ireland must be added too. Adding
Belgium now becomes quite an exercise.
Anybody knows what the
Western troops are in Afghanistan for? Rep. Lynn
Woolsey (D-CA) talks about the "disastrous" war that is Afghanistan.
"This war represents an epic failure, a national embarrassment and a
moral blight," Rep. Woolsey said. After the British left, the Russians
came in. The USSR left right before it went bankrupt and when they left,
the USA and Western-Europe moved in...
After Goldman Sachs,
JP-Morgan is now also moving into Washington D.C.
Obama selected William Daley as chief of staff...more
Don't forget the Stop Loss
(stop loss levels) for $-Gold
and $-Silver.
If these are violated, we could see a
correction lasting some weeks and maybe months. We don't see this happen
as the Gold and Silver sector is already oversold...but one never knows.
“The returns over the last 10 years, gold
returned over 18% and silver close to 24% annually. These are
spectacular returns and we haven’t seen anything yet, we’re not even
close to the third leg which is the blow off"
.Volcker
is stepping down as head of the Advisory panel to President Obama.
He became a legendary figure on Wall Street when as
Fed chief he broke the back of double-digit U.S. inflation in the
early 1980s by sharply raising interest rates, began advising Obama
during his 2008 presidential campaign and has wielded clout on issues
ranging from financial regulation to fiscal policy. The news will be
made public by Obama today...more
And last but not least,
the BOND markets
keep falling apart...
Thursday January 6, 2011 - Do you really think it's normal a Bank puts
your money into Facebook?
Goldman
gets into Facebook. Goldman Sachs invests $500
million in Facebook. (more)
This shows how sick the financial sector is and how dangerous Bankers
are. The Glass-Steagall act
was voted and implemented after the Great Crash of 1929 because at
that time it became evident that the fact Banks were allowed to buy
and sell stocks (read speculate on the financial markets with the
deposits of their clients) was an important factor behind the 1929
Stock market crash and subsequent collapse of the economy. By
investing this amount of money into Facebook Goldman Sachs
confirms that it thinks Facebook is worth more than the entire Silver
market. Louis XIV also was convinced he was "Le Roi Soleil ".
Louis XV is know for: "après moi le déluge and Louis XVI was
decapitated...
Provisions
that prohibit a
bank holding company from owning other financial companies were
repealed on November 12, 1999, by the
Gramm–Leach–Bliley Act. [2][3]
under the Administration of Bill Clinton.
The repeal of the Glass–Steagall Act of 1933
effectively removed the separation that previously existed between Wall
Street investment banks and depository banks and is to be
blamed for exacerbating the damage caused by the collapse of the
subprime mortgage market that led to the
Financial crisis of 2007–2010.[4]. ...more
Global Sea Surface
Temperature continues to drop. This means the
Global warming Hoax only lives in the brains and pockets of Al Gore,
Maurice Strong and other Green politicians; that this wasn't the last
cold winter and that we shall have less Hurricanes (Hurricanes request
WARM water temperatures)...more
BEFORE you start to
panic (because of a one/two day action of the Gold
pool), do check our charts of Gold expressed in
Euro,
British Pound,
SA-Rand,
Yen-Gold,
Swiss-Gold,
Aussie,
CanDollar,
Ruble, ... Technically speaking it is
IMPORTANT the TOP of the Trend channel becomes support. If this fails,
prepare of a test of the BOTTOM of the Trend channel.
Those who still worry
must browse again at our
Chart of the HUI-index(Gold bugs index). Randgold slipped because of troubles in Ivory
Coast (Randgold Resources operates in Western Africa)...more
[all charts of the Gold and Silver stocks section have been
updated]
"The problem is that
politicians and citizens alike have no clear vision of the costs of a
seemingly perpetual trillion dollar annual deficit,"
Pacific Investment Management Co.'s Bill Gross
said investors should favor emerging market corporate and sovereign
debt as "mindless" U.S. deficit spending may result in higher
inflation, a weaker dollar and the eventual loss of America's AAA
credit rating.
Buying debt in emerging market countries with
higher real interest rates, wider credit spreads and strong balance
sheets will offer more return as well as protection from dollar
depreciation as U.S. policy makers run up record deficits at the
expense of economic growth.
Wednesday January 5, 2011 - "The gold cartel
really tossed the kitchen sink at gold and silver yesterday, but the
bullish trends in gold and silver are still in place".
European
Governments start seizing private pension plans.
Hungary, Poland, and Bulgaria but also France take over citizens'
pension money to make up government budget shortfalls. It is only a
matter of time BEFORE this spreads out through all of Europe.
In November, the French parliament decided to
earmark €33bn from the national reserve pension fund FRR to reduce the
short-term pension scheme deficit. In this way, the retirement savings
intended for the years 2020-2040 will be used earlier, that is in the
years 2011-2024, and the government will spend the saved up resources
on other purposes...more
Energy prices deeply
affect the economy and inflation figures. And what we
see is rather grim...more
There is a serious seller
for $-Gold around $ 1420 and there are serious buyers
of $-Gold around $ 1360. Central Banks and the Authorities are
working out their New Year's resolutions. But additionally, many Hedge, Common
and other funds have to readjust their positions for 2011. Do
check out $-Gold Points and Figures chart for the base of the trend
channel en the Maximum Activity support line.
Tuesday January 4, 2011 - To buy Gold and Silver is one exercise, to
know WHEN to get out another one which is as important, if not more
important.
$-Silver has
done what $-Gold will do! logic Mister Holmes...more
During
the last Quarter of 2010, the Dollar was saved by the propaganda sold by
the Financial Times. The problems in Greece were
highlighted but those of the Municipalities where billions were lost,
forgotten. This is how Sheep are
controlled...but will this continue in 2011?. If it does it will be
a lot more destructive than the 2008 Stock Market crash...more
Amazing
is that EACH TIME the PUBLIC holds an HISTORIC maximum of Public Debt,
this debt becomes worthless. This time it won't be different. The HERD
simply refuses to learn. It always has an excuse ready until....it is
too late. This section is worth a fortune to any Bond holder. ..more
Should I
continue to hold
Corporate bonds? are they safe? This
section gives you ALL the answers you need...more
This is
our new picture for Treasuries (Government
Bonds) and we also have a NEW picture
for the Utility index...click here
Monday January 3, 2011
France
and the disastrous situation it is in is the best kept secret in the
EU. Theisolation of
France out of the Euro would be catastrophic says French president
Sarkozy. What he did not mention is that the Euro
is a political Frankenstein and that the rising price of Energy (Oil)
will break its back. Expensive energy always has and always will.
A break up of the Euro zone will have dramatic consequences for the
German and French banks (they will probably not survive it)...more
Why
South Africa, Canada and Australia are better options than the USA, the
EU,...more
Price of
Real Estate in the USA expressed in Real Money or Gold and the Real
Estate cycles and interest rates...click
here
Banksters they are and the nasty role they played and still are playing
in this depression will not go unnoticed by the history books:
fractional reserve banking, uncontrolled bank manufactured financial
products,
Standard
& Poor's downgrades Japan's Sovereign debt. We
told you Japan would rot to the core! The yen is nothing more than an
instrument to park Fiat Money for a short period of time.
Natural
Gas is a bomb waiting to explode. As usual the danger
sits in a corner nobody expects or talks about: Algeria where the
unemployment is around 25%. The global Algerian situation can be
compared to the situation in Tunisia...and it will at a certain time
also explode. 
Hedge
fund managers are social animals, just like most other active
investors.
They belong to the same clubs, go to
the same dinners and conferences, share the same brokers and research
services, and view the same reports and price charts. There is nothing
new about the pack mentality which has been around for a lot longer
than hedge funds. It is normal. However hunting in packs, in an
attempt to muscle a market, which hedge funds and other large
speculators occasionally do, is obviously predatory. Having said this,
you must understand the price goes up or down because of the MARGINAL
QUANTITY which is traded on a given day.
There is some good news
for the energy sector. The bad news however is that
we must be very patient and that in the mean time the price of
Oil (and 
Bearish sentiment on
Nero
burned down Rome so he could built a new Palace and he blamed the people
for it. We have no doubt
that Gold and Silver and the Gold and Silver
sector (major and juniors) will end up 'a lot higher' by the end of
2011. Between today and December 31, 2011 we can and we will see some
fluctuations. One may never forget that we do have Banks,
Central Banks, Plunge protection Teams ,
Gold Pools and Politicians (Authorities) which
only have ONE GOAL: to stay in power as long as possible using all the
instruments which are available. They will do all they can to keep
the people BELIEVING in worthless fiat money.
Uh...no
inflation...!? All is well Madame la Marquise - People can only be
fooled for so long...the day the Herd wakes up because it is hungry,
political leaders always have to run for their lives...
Friday January 14, 2011 - Volcano eruptions ALWAYS have a negative
impact on the world weather conditions and vegetation.
2011
won't see any recovery at all and we have no doubt it will get a lot
worse! Better put those safety vests on, cause the
boat is going to be rocked beyond your imagination.
Goldman
gets into Facebook. Goldman Sachs invests $500
million in Facebook. (
European
Governments start seizing private pension plans.
Hungary, Poland, and Bulgaria but also France take over citizens'
pension money to make up government budget shortfalls. It is only a
matter of time BEFORE this spreads out through all of Europe.
France
and the disastrous situation it is in is the best kept secret in the
EU. The isolation of
France out of the Euro would be catastrophic says French president
Sarkozy. What he did not mention is that the Euro
is a political Frankenstein and that the rising price of Energy (Oil)
will break its back. Expensive energy always has and always will.
A break up of the Euro zone will have dramatic consequences for the
German and French banks (they will probably not survive it)...
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