Economic recovery talk is smoke & mirrors as corporate debt bubble ready to bust – Richard Wolff — RT Business News https://t.co/yYISQfim4Z
NEWS DECEMBER 2011
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Happy new year !
Tuesday 27 to Friday December 30, 2011 - we just opened the video section - enjoy !
"Let me tell you that when this year is over, the only hands left holding physical gold and gold shares are the strongest hands on the planet. Every possible weak hand has been shaken out. Every person with emotions even latently capable of overwhelming their intellect, overwhelming their judgement, will have already been overwhelmed. The people who are left are people who will never give up their positions.” — James Sinclair
December 29 we may have seen an important technical signal for Gold and for Silver. A confirmation however is requested. Stay tuned!
Cuba or a lesson to the Western world.
A XMas present it was! Di Modica spent some US$ 360,000 to create, cast, and install the sculpture following the 1987 stock market crash as a symbol of the "strength and power of the American people." The sculpture was the artist's idea, not the city's. In an act of "guerrilla art", he trucked it to Lower Manhattan and on December 15, 1989, installed it beneath a 60-foot Christmas tree in the middle of Broad Street in front of the New York Stock Exchange as a Christmas gift to the people of New York. That day, crowds came to look at the bull, with hundreds stopping to admire and analyze the gift as Di Modica handed out copies of a flier about his artwork.
The police seized the sculpture and placed it into an impound lot (off course). The ensuing public outcry led the New York City Department of Parks and Recreation to install it two blocks south of the Exchange in the plaza at Bowling Green. It faces up Broadway.
thursday to monday December 22 to 26
We will publish our previsions for 2012 over the next coming days. Those who want to be sure not to miss these can Subscribe to our free mailing list. We wish all our readers Happy Holidays and a Healthy 2012.
wednesday december 21 - politicians and cops are the biggest Hypocrites in the world
How the heck can a Police Officer behave in such a way? By doing so he/she ain't any better than the North-African and Middle-East scum... and why is the Herd so stupid it fails to recognise this? This ain't going away before it gets a lot worse. There is no doubt the Western governments are running out of time and more people in Europe and North-America are calling for a change and will be beaten and arrested before change is seen.
The subscriber sections for the world stock markets, Gold and Silver Majors and Juniors have been updated and I have is little doubt that 2012 will be a year full of dramatic swings. Some trends are slowly becoming a reality and I expect that this will become visible to the Herd during the first half of next year. As usual NOW is the best time to act, not when every body does. Don't miss this Huge opportunity.
I am amazed to see all this so-called experts who zoom in on every short-term optimism while explaining away the reality. What we are going to see, won't be a walk through the park. [Published in 2008 and updated in December 2011]
Earnings will melt down
We shall see hundreds of bank failures over the next years (July 2009 we had 55 in the USA)
Even more Hedge funds and Clearing houses will blow up
Brace for soaring corporate defaults and a growing junk bond market.
The Real Estate bubble will continue to deflate
Somewhere down the line, we shall see hyperinflation, soaring interest rates and a global depression.
We expect 15 million foreclosures by 2016 and several defaults by US cities
We expect to see a pension crisis as pension funds and insurance co's will go belly up or will have to be bailed out.
Brace for further bankruptcies and/or bailouts for banks, airlines (Alitalia) and autos (GM)
One can almost guarantee that soon, Gold, Oil, Silver and inflation will be at new highs and the Euro at new lows.
- After the euro is gone, the dollar will follow...
Monday and tuesday december 19 - 20
Chinese gold imports coming through Hong Kong increased for the fourth month in a row, hitting 2.8 million troy ounces (85.7 tonnes) in October. This is 50% more than in September and 40 times higher than a year ago. Chinese however don't mind and they take advantage of each price opportunity to buy more Gold. They know why!Remember the trick is to buy low and not to panic when you sometimes have been early. Better early and safe than late and sorrow. Remember it is the PAPER MARKET for Gold and Silver which is coming down, NOT the PHYSICAL MARKET where demand is rising. An example is that in India Gold is selling at a premium as there is a shortage of metal.
We are in a situation which is worse than in 2008 when Lehman Bros went bankrupt. Today it isn't just Lehman, it's ALL the large banks and Greece and Portugal and Spain and Italy and France and the UK and Ireland and Belgium and the Netherlands and California and the USA...and those which I forgot to mention like the DERIVATIVES which are at this point coming very handy for the Authorities as they can by using these instruments manipulate the financial markets unnoticed. Short term such makes the investor/saver unhappy and the Authorities happy as it chases many into Government bonds where the money is needed right now and where Government plans to take it away tomorrow. One big reason for the current procrastination is that big private creditors are scrambling to use the current window of opportunity to offload as much bad paper as possible onto governments and thus the taxpayer before the final collapse.
The worst-case scenario for Gold would be a drop that matched the biggest on record, 30%. From the peak price of $ 1900 that would take us to $1,340. A fall to that level would not by any stretch signal the end of the bull market and it would represent a true blood-in-the-streets buying opportunity. After all, that's exactly what happened in 2006 and again in 2008, and in both instances gold eventually powered much higher. The bears were wrong then, and they'll be wrong again this time, even if that extreme scenario were to come to pass. There is absolutely no doubt that once this correction has been taken Gold will geyser to $ 3500 and higher. Worst case scenario - if I am wrong and it does not - it will be because the global financial system has for some reason blown up. At that time there will be two kind of people: those with money (gold) and those with no money. [The worst plausible scenario we see for silver in the near term would be a fall to $20, matching 2008's 50% drop. But you'd have to be awfully bearish to think it will plummet that far.]
Politicians are the second oldest profession in the world. They should have stopped at the 1st one which is Prostitution; at least here the customer gets something for his money. Politicians invariably respond to crises that they created by more regulations and taxation. Because crises always generate more problems it inspires politicians to create even more legislation. After all, isn't that what they are supposed to do?! But the increased legislation and taxation create a downward spiral under which the productive sectors of the economy collapse under the weight of taxes imposed in the name of fairness and equality. The danger is that these politicians are prepared to sell their father and mother just to stay in power. That they will do WHATEVER is requested to keep the Banks alive (without which they have no power at all) and if necessary will revert to WAR to bring down unemployment and put Capital and citizens in a straight jacket. What better than an escalation of the Middle-East crisis which would lead to a disruption of the world oil supply and would sent huge waves of inflation across the planet, decimating what is left of the worthless and doomed fiat currencies?
Expect to see Banks nationalized if the Euro and the EU falls apart. Few remember the old days where the french banks were in fact French National banks or a souvenir from the previous Great Depression, the World Wars and the subsequent economic crisis. Few remember the time of capital export controls in Europe and when it was so bad most of the European Gold holdings ended up in the USA. The financial memory of the Herd is indeed very, very short.
friday december 16
We've gone a long way since Banks and Central Banks were the Temples of the Gods and were the inner sanctum was only accessible by the High Priests and Labyrinths protected by Minotaur like monsters were used to safe keep gold, silver and other valuable commodities. Just like during the 1930's (a lot of people kept their savings in a tin at home) where in some states Banks foreclosed on in average 200 farms a week (if they had not gone bankrupt before people again) start to mistrust the banks. Banks are no longer perceived as Temples and unfortunately only the monsters are left. Pretty hard to write a scenario for what is going to happen with these Banksters as we now have the FDIC and the Central Banks which were not around in the 1930's....but not hard to imagine we shall live a Hyperinflationary Depression.
Not a joke...war ALWAYS comes at the end of a Depression. This is going to be a big one...and Gold comes in extremely handy during times of War. It always has and always will.
thursday december 15
These are the days where one needs the helping hand of an experienced professional...all information pertinent to what is happening in today's financial markets are published in the subscribers' sections.
wednesday december 14
Technically Gold is resuming the ABC correction as shown on the candle chart posted last week and there are a growing number of bearish advisers (such is very ******* for gold).
Either the Euro will disappear and Fiat Euro holders as well as the holders options to buy Fiat Euro’s or Bonds will loose it all…and the NOMINAL price of Gold will come down, either “they” will do whatever they can to ensure the Euro survives (as long as possible) and the nominal price of Gold will soar to $ 6,000 and higher. In both cases the REAL VALUE of Gold will stay the same: holders of Gold will be able to buy the same quantities of Goods and Services.
It's the debt killing the economy and not even a balanced budget will solve the problem. Debt to GDP stands at historic high levels. Greece and other FPIG countries have a Debt to GDP ration greater than 100%. The better ones have a ration below but close to 100%. What NOBODY tells you is that as the Depression works its way through the economy, GDP (even with cooked inflation figures) will continue to fall...and the Debt to GDP ratio rise even more. Add to this that interest rates will geyser (like is now the case for Greece) and that this will make it for Governments impossible to honor their debt. All those who are learning Chinese should know Debt to GDP ratio of China is 200% and that China is a High Order Capital Good Country which will suffer even more from the depression than the West. They should know that the Chinese banking system is rather disorganised and not stable. They must know that Hong Kong will within 5 years from now be completely swallowed by China and the Chinese system.
Location, location,location...very important for your savings at a time where the Euro is coming under renewed pressure. During the crisis in Argentina the Authorities together with the banks confiscated the citizens' deposits in foreign currencies and used these to pay off part of the debt. Keep US-Dollars within the American banking system in the USA, Canadian Dollars within the Canadian banking system in Canada, Australian Dollars within the Australian financial system in Australia and Swiss francs within Switzerland. Either one must open a local bank account either one must buy the local domestic Treasury bonds (short term). Note that the Swiss Treasury bonds sell at a NEGATIVE YIELD of around 1%...or this is the price many investors are willing to pay to be out of the Euro/Dollar and into the Swiss.
Will Spain be the 1st to leave the EU or will Britain win the Great Escape?
tuesday november 13
We have important information pertinent to Gold and the Euro for the Subscribers only....
Monday December 12
We're living the dead of Socialism and the end Welfare state. The world is now in a deep monetary, financial and economic crisis; this is not a surprising statement as informed people are well aware of this fact. But the crisis is even more profound: it is actually a political crisis and should be even considered as a crisis of our civilization.
The Stock market is rigged - maybe so, maybe not. The price of Gold and Silver is manipulated. Maybe so, maybe not. For Goldonomic this is irrelevant. Our charts don't mind rigging (manipulation only works SHORT TERM). As a matter of fact our Point and Figures charts filter the rigging out of the picture and under most circumstances continue to give us a sharp focused image of what is really happening. Technical analysis is contrary to the general belief impossible by charting just one stock, one commodity, one bond,....it rather is the conclusion which is made after going through a whole lot of different charts.
Many people are broke and don't know it yet. Derivatives are a ticking Financial Nuke bomb. Basically, with $708 trillion in derivatives on a $65 trillion world economy, something has to give. There is something like $210 trillion in debt supported by only $150 trillion in assets. If you open an account with a commodities broker or even with a stock broker on margin, you sign a document acknowledging the company has the right to use the securities and the cash in your account as collateral against the financing they get from banks to loan to you. In other words, they borrow money from banks at say, 3% to loan to you at say, 6% and pledge your assets against those loans. It's called hypothecation and is perfectly legal. They can also make investments in their name using your assets. But the investments have to be in something safe, such as Greek government bonds now paying 352%. That's called re-hypothecation and again, you signed a document when you opened your margin account saying they could do that. It's perfectly legal...and maybe you're naive.
friday december 9
MANY of the world’s financial and economic woes since 2008 began with the bursting of the biggest bubble in history. Never before had house prices risen so fast, for so long, in so many countries. Yet the bust has been much less widespread than the boom. Home prices tumbled by 34% in America from 2006 to their low point earlier this year; in Ireland they plunged by an even more painful 45% from their peak in 2007; and prices have fallen by around 15% in Spain and Denmark. But in most other countries they have dipped by less than 10%, as in Britain and Italy. In some countries, such as Australia, Canada and Sweden, prices wobbled but then surged to new highs. As a result, many property markets are still looking uncomfortably overvalued. Even trees built with bricks and mortar don't grow all the way to Heaven.
The latest update of The Economist’s global house-price indicators shows that prices are now falling in eight of the 16 countries in the table, compared with five in late 2010. (For house prices from more countries see our website). To assess the risks of a further slump, we track two measures of valuation. The first is the price-to-income ratio, a gauge of affordability. The second is the price-to-rent ratio, which is a bit like the price-to-earnings ratio used to value companies. Just as the value of a share should reflect future profits that a company is expected to earn, house prices should reflect the expected benefits from home ownership: namely the rents earned by property investors (or those saved by owner-occupiers). If both of these measures are well above their long-term average, which we have calculated since 1975 for most countries, this could signal that property is overvalued.
Based on the average of the two measures, home prices are overvalued by about 25% or more in Australia, Belgium, Canada, France, New Zealand, Britain, the Netherlands, Spain and Sweden (see table). Indeed, in the first four of those countries housing looks more overvalued than it was in America at the peak of its bubble. Despite their collapse, Irish home prices are still slightly above “fair” value—partly because they were incredibly overvalued at their peak, and partly because incomes and rents have fallen sharply. In contrast, homes in America, Japan and Germany are all significantly undervalued. In the late 1990s the average house price in Germany was twice that in France; now it is 20% cheaper.
A house is a non-movable asset a money maker for the Banks and the tax goat by excellence for the Government. More in our Real Estate sections.
We are absolutely AGAINST the digitization of securities (bonds, stocks) and one should do whatever one can to AVOID it ! Not only is digitization a prelude to full fiscal confiscation but because of the extremely dangerous situation the international financial markets are in (DERIVATIVES) it is a path to financial disaster.
Basically the euro and the Fiat currencies are worth ZERO....but the following chart gives you an idea of the imbalances the IDIOTS of the EU have created.
Thursday december 8
These are the rules of the game. Hard to believe why the Herd is so naive and even harder to understand why it keeps falling for the talks of the same charlatans. There is no such a thing as a free meal. Governments cost a lot of money. Big Government costs even more money. One Government employee takes away the job of two in the Private economy; the more government, the more rules and taxes. Because of this growing pressure Capital and the best Entrepreneurs flee the country for better and during this process they take not only Employment along but also Welfare along. Authorities have no choice but to increase taxation and regulation (Greece, Italy,...) hereby chasing even more Capital and Entrepreneurs away...a vicious circle it has become....
Government was the reason they had to built a Wall in Berlin and Government was the reason why the Wall was taken away (the USSR had gone bankrupt) Government was the reason why people left Europe for the Americas. Today one wonders where all these brave Americans have gone? Have they been put asleep by the talks of the Media? Does nobody see the preparations for the next presidential elections look like a cheap burlesque Real life show? Donald Trump surely is a good hint: you're fired!
Exactly this Government is the entity which by issuing worthless Treasuries is together with Banks creating Money out of thin Air. The irony is that the Herd is keeping its savings exactly in the most dangerous place: Bonds and fiat money…weird.
OH BRITAIN, where did we go wrong ? We're "broke" and can't help our own Seniors, Veterans, Orphans, Homeless etc.
The British Government provides the following financial assistance:
British old aged pensioner Weekly allowance £104.
Illegal immigrants/refugees living in Britain Weekly allowance £250
British old aged pensioner Weekly Spouse allowance £25
Illegal immigrants/refugees living in Britain Weekly Spouse allowance £225
British old aged pensioner Additional weekly hardship allowance £0;00
Illegal immigrants/refugees living in Britain Weekly Additional weekly hardship allowance £100
British old aged pensioner total yearly benefit < £6,000
Illegal immigrants/refugees living in Britain total yearly benefit £29,900
wednesday december 7
Today's update is for subscribers only...
more in the subscribers section....
tuesday december 6
You don't need to be an Einstein or to spend money to listen to somebody explaining that there is something deadly wrong with our Western Financial system, the Economy and the World politics. Our task is not any more to find a way to double your capital within the shortest period of time but rather to find a way in PRESERVING your savings during the next couple of years. Not only will all our expertise and experience be requested but YOU will also have to adjust your reasoning process and you will have to move BEFORE the Authorities close the legal escape routes.
Before and during the second World War Europeans shipped all their Gold to the USA (where it was out of reach of the local Authorities). Hungary lived an extremely difficult Hyperinflation because Hitler sized the Hungarian gold...Today another continent has become what another country was 35 years ago. Today another continent offers more security than Switzerland...as long as one doesn't travel too far away to Hong Kong and to China. Both countries are a no go. Just like in those days it still is possible to ship your Gold to the other side of the Atlantic and have it secured in a safe....nothing has changed (up to now).
Swiss banks (UBS and Credit Suisse being the biggest sinners) are so intertwined with the World financial system and have so many assets outside Switzerland that the country has become subject to obvious international pressure of authorities in need of cash.
Credit ratings are lowered at the same rate Banks are closed in the USA. It is so bad it has become boring to write about it. Better focus on the REAL issue: preserve your savings!
more in the subscribers section....
monday december 5 -
You are NEXT ! After Hungary and Ireland, Portugal is raiding the Pensions of its citizens. The cabinet agreed to transfer the assets from four of Portugal’s biggest banks to the state balance sheet. The assets will be used to bridge a gap needed to meet the fiscal deficit target of 5.9pc of GDP set by the terms of the country’s €78bn bail-out from around 10pc in 2010. "This measure is more than sufficient to meet the budget deficit goal in 2011," said Helder Rosalino, secretary of state for central administration, on Friday.Portugal said it had informed the EU and IMF and assured them it would be a “one-off”. However the 2010 budget was met by shifting three pension plans from Portugal Telecom on to the public social security system. The liabilities don’t count, yet. Taxation, taxation, legal theft, taxation, inflation, hyperinflation...This is a holdup in broad daylight and few people seem to understand...
Gerald Celente sees Economic Martial law and Bank Run after the holidays. The Banks do not have any money or Gold just a lot of hot air says trends master Gerald Celente , Alex Jones talks to Gerald Celente about an update from the trends forecaster and author on the theft of his 6 figures account , Gerald Celente sees Economic Martial law and Bank Run after the holidays, A bank run (also known as a run on the bank) occurs when a large number of bank customers withdraw their deposits because they believe the bank is, or might become, insolvent. As a bank run progresses, it generates its own momentum, in a kind of self-fulfilling prophecy (or positive feedback): as more people withdraw their deposits, the likelihood of default increases, and this encourages further withdrawals. This can destabilize the bank to the point where it faces bankruptcy. The only way to fight it is to create fresh money exponentially and this in turn results in Hyperinflation. Once we have Hyperinflation, the banking system is cooked anyhow. In other words, we are living a loose-loose situation and the time to prepare is NOW.
Clearing houses start to go belly up. Extremely dangerous....especially as we more and more have Digital Stock Certificates (note this is being enforced in many countries). Clearing houses are the real spine of the financial system. They make the arrangements when you buy and sell stocks, futures, gold, options, etc.. from somebody else. I am 1000% AGAINST digital, paper securities, gold, silver, bonds and shares. If you have not the physical stuff, you have nothing. If you don't care about the physical stuff, stop investing and spend the money you have, or burn it. At least it will give you with some kind of pleasure. For those seeking security, there is an alternate..click here
Britain has been sucked into a second credit crunch that threatens the stability of the world’s banking system, Downing Street warned last night.
Central banks from around the world – including the Bank of England and China’s equivalent – yesterday launched a dramatic rescue bid worth hundreds of billions of dollars. Short, powerful accident and saved by a swift intervention of the authorities.
'It's my job to assume the worst. You can test all kinds of benign scenarios, but if something really bad - let's say a sudden overnight default of Italy - were to happen and we hadn't tested that, I wouldn't be doing my job properly. If that latter scenario were to occur, things would look very ugly indeed."
European banks have already been frozen out of credit markets because of uncertainty about the survival of the euro. The new deal agreed yesterday will give them ‘unlimited’ access to cheaper dollars. Next week EU leaders, including David Cameron, will gather for last-ditch talks to find a solution to the euro crisis, amid growing fears the single currency could collapse before Christmas...more
more in the subscribers section....
friday december 2
The place WHERE you keep your savings has become as important as how you invest your savings. By this sentence we absolutely don't insinuate you should cheat on the Tax Authorities. Only that you must ensure your savings are kept in a way which allows YOU and only you to be the absolute director of your life savings. In Europe and even Switzerland it more an more becomes increasingly a game of arrangements between Political Authorities where the real owner of the funds has less and less to say. My father used to call it "Legal Theft".
All sections Commodities (energy, agriculturals,non-ferro's, inflation index) were updated. No deflation signs here.
At least one success for the Green Politicians in Europe. The Green Belt around Europe is getting stronger. We saw Muslim oriented elections in Morocco and Tunisia. We know Algeria is traditionally extremely Muslim oriented. It is largely expected the election outcome in Libya and Egypt will also be Muslim... France, Belgium, the Netherlands and the United Kingdom have an important non-European oriented population. Often in some parts of European capitals one gets the impression to be on vacation in some North-African country. Few know that Count Dracula was in fact able to stop (at least for a while) the invasion of the Muslim from the East and that only 250 years ago the Muslim were dictating the laws in Spain (Andalusia and Granada). The shift in population could well play an important role during the coming depression as I expect that these people won't stay sweet and nice once life in Europe starts to get hard. Once Syria, Afghanistan and Pakistan go, the West could also go and Israel is a fuse in the powder house. Remember a War has always been extremely welcome as it brings down Unemployment figures and allows Authorities to enforce unpopular rules. Don't think and hope that this time it won't be that bad. Rome is burning, the farmers are leaving their farms because they get free Bread in Rome and the People Are watching the Games...why get tired, why work when the Government does it all for you....and give most for free. Only idiots work and pay taxes.
It becomes clear why the exchange rate between the Dollar and the Euro stabilizes. The Federal Reserve and other banks announced Wednesday that they were engaging in a coordinated action to provide liquidity to Europe's credit markets. What essentially happened is that the Fed cut the interest rate it charges the European Central Bank to borrow dollars. The ECB wants the dollars so it can lend them out to European banks, which have been having trouble borrowing dollars at affordable rates due to fears about their financial health. It’s worth taking a moment to see what actually happens with these swap facilities because they can create the illusion we’re sending boatloads of dollars overseas and the ECB is sending us boatloads full of euros. Would-be pirates will be disappointed that no currency flotillas cross back and forth on the Atlantic.What really takes place, for the most part, is down on Maiden Lane in Manhattan’s financial district. That’s where the headquarters of the Federal Reserve Bank of New York is located. Like most interbank transfers these days, everything is done electronically. When the ECB wants dollars, it gives notice to the New York Fed. The notice contains how many dollars the ECB wants, when it wants them, what the exchange rate is at the time, when it will pay back the dollars, and what the interest rate will be. That simple it now is...Green Politicians can be happy: not one single tree will be cut to Bail out Greece, Italy, Spain,....more
thursday december 1
Nigel Farage is well know amongst our readers for being blunt but also in forecasting correctly how and what the European Politicians are behaving. Don't forget to check on the empty European Parliament...Clear is that most European politicians give a F..k about Europe and its citizens. No way this story will see a happy ending.
more in the subscribers section....