NEWS JUNE 2012 (public)

If you are not keeping your savings out of political reach, you haven't finished your home work!

Friday June 29, 2012 - the oil embargo against iran is supposed to start july 1st -

indian goldBusiness Standard : Indian Central bank likely to impose curbs on gold coin sale. The Reserve Bank of India (RBI) is likely to clamp down on gold coin sales by banks, amid rising bullion imports adding pressure to the current account deficit and weakening the rupee. The Banking Regulation Act does not allow banks to trade in commodities and they play the role of a financial intermediary. This norm was relaxed in the pre-2008 era when the country saw a dollar influx that resulted in a sharp appreciation of the rupee. To sterilise dollar inflows, banks were allowed to sell gold, as they imported the yellow metal. The measure was temporary.
“Banks were allowed to sell gold by importing it to fight the excess dollar flows. By the same logic, the measure should be reversed now as we are at the opposite end of the spectrum. It was a temporary measure, which unfortunately was made permanent by banks,” a top RBI official said. The rupee has depreciated 30 per cent since August 2011  amid the sovereign debt crisis in the euro zone, which made investors flee to safer havens. Weakening macroeconomic fundamentals like the fiscal and the current account deficit have resulted in investors pulling out from the Indian market.

In its recent interactions with bankers, the central bank sounded its discomfort over the practice of banks pushing gold coin sales and asked them to go slow. However, banks have not stopped the practice of incentivising their staff to push gold sales, as they earn a margin of Rs 100-150 per gramme of gold sold.

Gold and silver imports were around $61.5 billion as of March-end — a growth of 44.4 per cent during 2011-12 as against 43.5 per cent in 2010-11. In 2011, India imported 969 tonnes of the yellow metal compared to 958 tonnes in the previous year, according to data compiled by the World Gold Council. In value terms, imports in 201-12 were around $60 billion. However, according to data released by the government, gold and silver imports in April and May 2012 came down sharply to $4.3 billion, compared to $9.2 billion last year. RBI Governor D Subbarao had earlier said the central bank was looking into the issue of rising gold imports and formed a committee headed by an executive director-rank officer to examine the reasons.!?

This is a freaky end for the month of June: options and COMEX contracts expire almost at the same time... Eye catching is the pressure on the Gold and Silver sector. The short term correction was - as corrections mostly are - swift and violent. The impact of the correction on the Investor who is invested according the Investment pyramid is marginal and temporary. Having said this, the MID-MAY support levels are still holding; there was a swift unexpected sell action with a rather low volume and only a well defined group of shares were affected: GG, GFI, ABX,....It clearly gives the impression either somebody is tainting the market, either a well invested financial is forcibly liquidating positions (like we had in 2008). Such is off course painful for the other intelligent investors but must be seen as a opportunity to add to one's positions. [It is a fact that the modern generation of investors (of should I say "traders") has only an eye for the nominal price and doesn't really understand what really is happening behind the screens. Especially not the fact that sometimes action comes at an unexpected time]

euros bundlesIt is either printing money or drowning. If European top doesn't agree on injecting more money into the EU-zone there will be no jobs and no improvement of the economic conditions. Therefore, contrary to the disgusting political games European Politicians are so good at (wished they were as good leading a country into prosperity) and the general belief,I have NOT THE SLIGHTEST DOUBT more money will be created, they will find a way to introduce Euro-bonds and we shall have Quantitative Easing to infinity. As soon as the financial markets understand that there is no possible alternate  plan and that additional money must be created, they will veer up dramatically...PATIENCE PAYS.

Iran threatens to close the Hormuz Street if the West enforces the sanctions as planned for July 1st. With the failure of negotiations between Iran and six world powers last week, the Islamic regime now says it has the right, under international law, to close the Strait of Hormuz to oil tanker traffic should an embargo on Iran’s oil go into effect July 1st.The third round of talks between Iran and the United States, Britain, France, China, Russia and Germany ended in Moscow without any agreement on Iran’s illicit nuclear program. Iran continues to insist that the only way out of the impasse would be for the West to accept its nuclear program...more

“It is noteworthy that should the oil embargo on Iran by the European Union take effect on July 1st, then the Islamic Iran has the right to retaliation as the waters of the Strait of Hormuz are located within Iranian territory,” Shariatmadari said. “According to the Geneva 1958 Convention and the Jamaica 1982 Convention, which touches on the legality of the international waterways, Iran can close down the Strait of Hormuz to all oil tankers and even other commercial vessels if it is barred from selling oil.”

The conventions allow passage of all vessels so long as the security of any country is not threatened. With these new sanctions, Iran would consider its security threatened.

Is it not wondeful that the USA has granted China and India an exception to trade oil with Iran!? ...more - Seems that here we have more exceptions than a rule.

Remember that when a couple of weeks ago the JPMorgan losses were estimated at $ 2 bn I already doubted the figure and published that a correct figure would probably run around $ 11bn!? . At this time official figures have reached a stunning $ 9 billion ! only $ 3 bn to go before we reach the $ 11 bn ...and life goes on as nothing happened....unbelievable...more The biggest bank in the US, JP Morgan Chase has liabilities of roughly 13 percent of US GDP.  Compare this to the massive banking liabilities of some European banks (note how good Canadian and South African banks rank) . Ireland, the UK, Switzerland (ranks 3rd), Denmark, France, Netherlands and Germany all have liabilities over 300% of their respective domestic GDP...more


note: the fact that Switzerland ranks 3rd explains why the International Authorities are able to exercise so much pressure  to have names released and have deposits of non-Swiss nationals taxed.

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Thursday June 28, 2012 - everything is gearing up for the final act -


Updated sections: Crude Oil , Bond fundamentals I

Swiss banks are running out of safety deposit boxes. The Migros Bank has completely run out of boxes and Baloise (safe-box-insurance co.) confirms "the minimum limit insurance for boxes" have been increased dramatically.

If you don't PREPARE NOW,  I promise you that when the final act "happens" you probably won't have to time to save your assets. It will be like thousand of people trying to get at the same time through a small exit.  The situation is A LOT WORSE than the Talking Heads are telling and PROPAGANDA is doing whatever it can to window dress the fact that the Emperor has no clothes. Each time I begin to dig in the figures, the end result is always dramatically worse than apparent. Governments are all bankrupt. But much more serious than financial bankruptcy is their total moral and intellectual bankruptcy.  The debt they are using to finance their bulging bureaucracies, bloated welfare rolls, giant pensions, and so forth is largely coming from the banks. But the banks are all bankrupt too, partly because they've lent so much capital to bankrupt governments. So you've got two sets of bankrupt institutions trading debt back and forth between themselves. The following table adding the National Debt level as a percent of GDP to the debt of the Financials a a percent of GDP is an excellent example. The table does not take into account any other debt.

Government need banks to create money. All creation of money is done by a dance between Government and banks. It is like magic. In the beginning there is nothing but air....next comes Government debt and fiat money. In the end Banks and Governments collapse overnight. The USSR in October 1989 is an excellent and modern example of what is to happen to the West!!

Greeks and Spanish people taking their precautions now are probably the lucky ones. This especially applies to Greece where the debt situation is marginal and even ridiculous compared to the rest of the World. The odds are that when the Black Swan comes most people will be too late...and sorrow. There will be a massacre of Treasuries, Bonds, Cash money, bank deposits, pension funds,...

total debt 2012

Country debt including the debt of domestic financial institutions (banks) fluctuate from 148% to 812%. The figures don't take into account the Future Obligations for Pensions, Medicare,...and the private debt. For the UK and Japan add another 200% . This brings the total for the UK to 1000% of GDP. The total Belgian debt to GDP for Belgium is +700% (see earlier publication). If you for a minute think Spain is a problem, what about Italy with an even larger  total debt or 217% of GDP!?

I think we have come to a point where not even Goldman Sachs or Gold are able to save the situation. Add to these dramatic debt figures the Quadrillions of DERIVATIVES and you get something which makes an Atomic Bomb looks like Mickey Mouse. If you think Germany is safe, note the poor situation German banks are in (see chart below)....


  1. Each day the Investment Pyramid makes more and more sense.... each day holders of Treasuries and Fiat Paper money risk to loose it all.
  2. If you for a second think that with these figures we can see anything but Deflation propaganda and no Hyperinflation , you must have a mental problem.

More about Recession Proof shares (did you know Nestle is controlling L'Oreal?) - click on the picture for a larger view.

recession proof

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Wednesday June 27, 2012 - Government has always been a synonym for legal theft

internet versus televisionInternet is bringing a new dimension to this….. The manipulative policies are tolerated and accepted because the advent of television in the political process allowing the politicians to project and to manipulate the emotive vote . Policies are not based on conviction but rather for the desire to become elected for the purpose of satisfying selfish interests.

Markets are often stupid and emotive. I expect we shall have to wait until Monday - after the European meeting - For some stupid reason the markets are still believing that the Authorities will stop injecting more fiat money and that we shall fall into Deflation. This is NONSENSE! . Better be prepared for the fact that exponential increasing amounts will be printed and injected over the next couple of years. Once the markets understand we shall see QE to infinity the Gold sector will rocket. In all cases the EU is bankrupt and it is only a matter as to WHEN it will happen. Europe is heading into a full-scale disaster. You see, the debt problems in Europe are not simply related to Greece. They are SYSTEMIC...more

No wonder we see no RUN on the BANKS. Every single Euro which is withdrawn is printed/created each time there is a demand and this will continue until the system collapses.

Europe has been taken over by communists. Portugal is being forced by the European Commission to kill a large percentage of its chicken population, with the slaughter to be completed over the next month. This by virtue of the ironically named EU Welfare of Laying Hens Directive, forbidding the continued use of conventional egg-laying cages. Portugal's fish harvest has effectively been cut in half. The country is reduced to buying many of the sardines that find favor in the local cuisine from the Spanish fleet. The Euro-meddling doesn't stop with fish. The Portuguese are mandated to trash a large amount of their annual orange production lest they exceed the quotas set in Brussels. Apparently the Spanish, ever attuned to capitalize on Portugal's mandated misfortunes, buy the unsellable excess oranges and use them to make marmalade... which they then sell back to the Portuguese.

(Reuters) - Italian tax police have seized 50 kg (110 lb) of gold from an Italian businessman at the Swiss border. The gold, worth around 2 million euros ($2.5 million), was found in a hidden compartment in his car last Thursday, the police said on Monday. The man and his daughter, who was also in the car, were both charged with smuggling. Italians have billions of euros in undeclared wealth stashed in Switzerland - funds that Italy is trying to have the Swiss authorities tax retroactively. I have also bought gold as a refuge from a worsening European debt crisis. A good advice: transport or have it transported LEGALLY....while it is still possible. Keep some in an old cookie jar...but store the bulk out of political reach. Germans who tried to smuggle Gold out the country during the Hitler regime, were arrested and either send to a Concentration camp or executed!

gold reservesPatience is a virtue!

Price will go up when time has come and nobody expects it. Yesterday showed how dramatic Gold and Silver shares tend to geyser when their time has come. Today I want to focus on the fact HOW CHEAP gold and silver shares are and how much gold/silver  you are buying by acquiring one share. The figures are smoking....

It goes beyond imagination how much value is acquired buy buying a single share of HARMONY GOLD.

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Tuesday June 26, 2012 - all over the world they are begging for more quantitative easing and...they are being heard!

Banks will rot to the core: Moody's cuts Spanish banks on sovereign downgrade (Reuters) NEW YORK - Moody's Investors Service on Monday downgraded the long-term debt and deposit ratings for 28 Spanish banks and two issuer ratings, following on the heels of a cut to Spain's sovereign rating to just above junk status earlier this month...more

Governments are crying for Money, they need more money....while the Herd lives on like nothing is happening....in the end Gold, silver and even copper were driven out of circulation. Same story, same denial of the Herd, same outcome....During this process it becomes impossible to see Deflation.

(Reuters) - Stockton, California was at risk on Monday of becoming the largest U.S. city ever to file for bankruptcy as the clock ticked down toward the midnight deadline of talks with creditors. If Stockton, home to a population of 292,000 about 85 miles east of San Francisco, fails to win concessions in the talks to close a $26 million shortfall for the fiscal year beginning on July 1, City Manager Bob Deis will soon seek protection from creditors with a rare Chapter 9 bankruptcy filing.

Stockton's finances collapsed along with its housing market, and despite slashing $90 million in spending in recent years and cutting a quarter of positions across its agencies, the city's finances cannot shake recurring deficits due to weak revenue.

Stockton's financial troubles have been compounded, according to city officials, by generous pay and benefits for city employees and retirees and the city taking on too much debt when it enjoyed a home-building boom in the early part of the last decade that transformed it into a distant bedroom community for the San Francisco Bay area.

Monday June 25, 2012 - compared to Goldman Sachs, we're altar boys -

sick on vacation

Europe has been taken over by Communists!

On Vacation and Sick? A Court Says Take Another (no, today is NOT April 1st!). BRUSSELS — For most Europeans, almost nothing is more prized than their four to six weeks of guaranteed annual vacation leave. But it was not clear just how sacrosanct that time off was until Thursday, when Europe’s highest court ruled that workers who happened to get sick on vacation were legally entitled to take another vacation. “The purpose of entitlement to paid annual leave is to enable the worker to rest and enjoy a period of relaxation and leisure,” the Court of Justice of the European Union, based in Luxembourg, ruled in a case involving department store workers in Spain...more 

Crude Oil behaving in an unnatural way: Did it ever occur to you that not only we have Presidential elections in November but that there is also an ongoing war with Iran, China, India and other countries who have decided to stop using the dollars as a currency to settle for the Oil trade and that the EU sanctions against Iran start next month!? Whatever is happening, bottom fishing is extremely difficult...but a bottom we have. Politicians can only rig a market for so long...and in the end it all comes back with a revenge. The supremacy of the USA is over and the Dollar is no more the #1 reserve currency.

Turkish fighter plane shot along border with Syria. What or who will light the fuse which will set the Middle-East on fire? Syrian air defences “shot down” the Turkish jet fighter that went missing while on patrol near the border between the two countries on Friday, according to local television reports. The F-4 Phantom, a fighter bomber with a pilot and navigator on board, disappeared over the Mediterranean. All radar and radio contact with the aircraft was lost shortly after it departed from Erhac air base in Turkey's southern province of Malatya.Turkey is a member of Nato, meaning that it could invoke Article V of the North Atlantic Treaty and summon the aid of all 28 countries in the alliance if it comes under attack. Turkey's government is a strident critic of President Bashar al-Assad's regime and tension has risen along the land border between the two neighbours. ...more

Can you for a moment imagine what will happen to your savings if a war explodes in the Middle-East!? What will be the impact on the Banks? on the stock markets: will markets be closed and if so in which countries? What will be the impact on Oil supply and the price of Oil/Gas (40% of the worlds' oil supply passes through the Street of Hormuz), will the authorities actually 'use' the War to enforce Capital Controls?,....

This chart is for those who are impatient and don't remember that during the last depression, Gold shares not only went up dramatically but that on top the dividend paid towards the end of the crisis was often larger than the initial amount invested in their Gold shares. Homestake for example went up from $ 50 to $ 500. Dividend in 1936 was $ 56...more -  This statement is important as we had a CAPITULATION VOLUME for the Juniors...see the subscriber section for a selection of stocks which will behave like Homestake over the next coming years.

LT1800 gold dow ratios

US Housing market hits 15 year low. In theory, plummeting home prices and record-low interest rates should make buying a home cheaper than renting one. But experts say in some parts of the country, it still pays to be a tenant. Remember the down cycle will take 26 years or until 2033. Renters, meanwhile, have more inventory to choose from as owners who are unable to sell their homes often have no choice but to find tenants, says Dan McCue, research manager at Harvard University’s Joint Center for Housing Studies. The number of single-family homes for rent or being rented grew by two million units from 2006 to 2010,..more  Similar patterns are unfolding in for example Spain and will soon unfold in France, Belgium, The Netherlands, ...

We published this video clip time ago..it's the story of African Illegal Immigrants bumping into Spanish people fleeing to Africa..

Real Estate corrections last for 26 Years! If you still haven't sold your Holiday house/flat in Spain...better hurry up. Prices will fall a LOT MORE. Fresh data yesterday shows how desperate the crisis is becoming in Spain. The property crash is accelerating. House prices fell at a 12.6pc rate in the first quarter of this year, compared to 11.2pc the quarter before, and 7.4pc in the quarter before that. Prices have fallen at least 26% and more in coastal regions. "Fundamentals point to a further 25pc decline," said Standard & Poor's in a report on Thursday. It may take another four years to clear a glut of one million homes left from the building boom.

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FRIDAY June 22, 2012 - BEWARE FOR FOOLS' GOLD and learn to live with volatility -

fools goldUpdated sections: Inflation , Zimbabwe , Weimar revolution , Hyperinflationary scenario , Hyperinflation & LOCG - see how it was in Argentina!, all Gold & Currency sections From US-DollAr to Sterling , Silver

Yesterday’s gold dip was just another temporary pullback and another buying opportunity for investors who can see the bigger picture !

The price of Gold Bullion followed exactly the same pattern in the Weimar period. Essentially flat during the second fase, then parabolic during inflationary collapse (see fazes of the hyperinflationary depression). Do you suppose the Central Bankers and their proxies then, as they do now, suppressed the price action to delay/stall for a bit more ‘time’ for the magic unicorn to somehow save them (or, as the cynic in me suggests, to position themselves to front-run what they certainly ‘knew’ was coming and Devil-take-the-hindmost (read: the dumb money)? ...more [do yourself a favor and read or reread  the story of Zimbabwe]

The moment you sell any Physical gold, you jump out of the frying pan (heated by Central banks) into the fire....the abyss....thin air....fools gold, paper money, digital digits in a computer, a bankrupt banking system...If you still don't UNDERSTAND what is happening at this time, I STRONGLY ADVICE TO READ and REREAD the "Hyperinflation Scenario".!...and the Weimar Revolution.

Societe Generale is "enthusiastic on gold" --  In the report, SocGen discusses the historical relationship between the price of gold and the U.S. monetary base. The SocGen team writes that "if gold catches up with the increase in the monetary base since 1920 (as it did in the early 80s), its price would rise to USD 8500/Oz," adding that just "to close the gap with the monetary base increase since July 2007, gold would have to rise to $1,900/oz, assuming full transmission from the monetary base increase to the gold price."

Maybe the reason for today's weaker Gold is further DELEVERAGING as it has leaked that DEXIA (French-Belgian bank) needs another € 220 bn to survive!? - The chief of the belgian central bank, Luc Coene (who only weeks ago confirmed ALL WAS WELL) confessed Dexia URGENTLY needs more funding.

manneken pisBelgium soon to be added to the PIGGS-list?  I have always advocated that Banks and Government will die together and here is another proof that this statement is correct.

It has leaked that DEXIA (French-Belgian bank) may need another € 220 bn to survive!? - The chief of the Belgian central bank, Luc Coene (who only weeks ago confirmed Tout va tres bien,  Mme La Marquise) confessed Dexia URGENTLY needs more funding.

Dexia is a leading source of financing for the Belgian government – it’s not there anymore. Belgium is going to have to find another way to raise money on international markets . The country doesn't has the money to absorb the losses of the bad bank right now anyway. Belgium already has a national debt of 100 % of GDP and is having problems raising capital under normal circumstances. Additionally, under normal circumstances, Belgium would turn to Dexia for financing — that’s obviously not an option anymore.

Dexia has over €500 billion in assets and €20 billion of those are government debts of Portugal, Italy and Greece. So let’s assume for the moment that the bailout only costs the Belgian government about €30 billion — which is way too conservative (we're talking about € 220 bn here. That alone would be sufficient to increase Belgium’s national debt load to 110 % of GDP, putting them within easy reach of where Italy is right now.. Any larger fraction of € 220 bn can double the Belgian national debt!

The bigger the bubble the more BELIEVERS and the more people are lured in it but also the bigger the Drama when it bursts.

The U.S. Treasuries market is currently the dominant financial mystery of the present time. Much like the proverbial "lead zeppelin" defies the laws of physics,the current status of the U.S. Treasuries market defies all of our financial fundamentals. It is a market which cannot exist, and yet it does. [ Jeff Nielson] . Treasuries are the guarantee behind Saving Accounts and Bank deposits...

The fact that the general price level keeps rising proofs that the DROP in Velocity is more than offset by the GROWTH in Money Supply!

Bank will rot to the core and when they do they will take Governments with them.  Moody's Cuts Credit Ratings of 15 Major Banks Including Bank of America, Citigroup, JPMorgan. Moody’s Investors Service downgraded the debt ratings of 15 major international banks and securities firms on Thursday, a move that could cost the banks billions of dollars in extra collateral.Credit Suisse cut 3 levels!....more

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Thursday June 21, 2012 -  Has Bernanke been talking yesterday?

saint bernankeBernanke is not some kind of Oracle...! Stock seesaw after FED talks...or this proof how stupid, uneducated and immature the 'short term market particpants' are. You have a problem if for a second you believe the lies these kind of people sell and that they are able to influence the market in the medium run. Bernanke & EU cos' are in fact making the end game WORSE!  What this continued Fed activism will do is to continue altering the functioning of markets, contaminate price discovery and distort capital allocation. Already, the viability of several segments – from money markets to insurance and from pension provision to suppliers of daily market liquidity, all of whom provide financial services to companies and individuals – has been undermined. The Fed has also conditioned many market participants to believe in a policy put for both equities and bonds. And other government agencies are relieved to have the policy spotlight remain away from their damaging inactivity...more

In a depression everybody suffers, it is just a question of who suffers the least. As the depression spreads, government will crank up taxation and austerity and governments and central banks will continue to destroy the value of money by printing unlimited amounts of worthless paper. This is when the suffering worldwide will accelerate. Not only will many people be without jobs, they will also be without a social security support system and with virtually no pension. And whatever little money people will have will have no value due the hyperinflationary prices of goods and services. For a few privileged investors it is still time to preserve assets and purchasing power by purchasing physical gold and storing it outside the banking system. Although gold has gone up around 6 times in the last ten years, it is still cheap and will continue to reflect the destruction of paper money.

The attention the correction of crude oil is given in the media, is a clear sign that we have a bottom....Oil has fallen 20% in less than 2 months. The drop has been sufficient to prompt most bears to declare victory and cover their shorts or even ponder getting long near last year's lows in the mid-$70s. But Jeff Kennedy, chief commodity analyst at Elliott Wave International thinks those buyers are early by about $40 (this is the initial breakout level). He bases his outlook on pattern recognition and psychology. His work suggests crude will plunge to the December 2008 lows of $38 a barrel then pause prior to falling another 50%. All in, Kennedy is forecasting an additional 80% drop in crude to $16.70 a barrel; a level not seen since November 0f 2001...in other words, this analyst doesn't seem to understand we have PEAK OIL and the East is consuming all the Oil the West is saving.  The analyst also doesn't seem to be aware that Natural Gas just saw a Major bottom.

The USA is like GREECE on steroids....best case scenario they will be able to keep the appearances up until the November presidential elections.

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Wednesday June 20, 2012  - Ever tried to pay back debt with more debt!? Why the heck can Authorities do this?

World War IIIUpdated sections: Portfolio , 

WW III could be the catalyst for the coming dramatic bull leg for gold. Iran, Syria, Russia and China are planning the “biggest-ever war games in the Middle East,” according to an unconfirmed report on the semi-official Iranian news site Fars News.According to the article, the four countries are preparing 90,000 troops, 400 aircraft and 1,000 tanks for the massive joint maneuvers, which are to take place along the Syrian coast within a month. Not only is the US-Dollar no longer the world's reserve currency but the USA is also about to loose its' military grip and standing. Something most Americans fail to see and to understand. The report states that Russian “atomic submarines and warships, aircraft carriers and mine-clearing destroyers as well as Iranian battleships and submarines will also arrive in Syria” and that Egypt has agreed to let 12 Chinese warships cross the Suez Canal for the exercises...more

Add to this the “QE3” speculation which has been rumbling on ever since the QE2 finished in June 2011, though clear signs in recent months that the US economy is slowing – with the horrific June 1 jobs report a particularly telling indicator – is raising dovish expectations. Goldman Sachs thinks it possible that the Fed could resort to regular open-market purchases of $50-$75 billion, perhaps as part of efforts to target nominal GDP increases.If so, this really is the type of “QE to infinity” programme that could have serious inflationary consequences. As economist Bob Wenzel reports at his blog: “$75 billion in added reserves would be huge. If it doesn't end up as excess reserves, $75 billion alone would mean annualized [sic] money supply (M2) growth of 10.5% – not including any multiplier effect as a result of fractional reserve banking.”

Oil is not Gold.  when inflation hits, nobody is going to try to protect $ 10,000 by buying 100 barrels of oil at $ 100 each to store in their back yard. Oil is not money, and cannot be money due to the extremely high storage costs compared to the extremely cheap storage costs for Gold. Wheat is not Gold and is also extremely bulky and heavy for the value, and is not easily transported on a person's body. A $8 bad of wheat is 80 pounds and cannot even be used for lunch. This brings me to Silver. Although Silver coins are handy and may at a certain time be used as money, SILVER is BULKY and 1 kgr of Silver contains as much buying power as a Gold coin of 1 oz. Now try to travel and cross any border with either 10 kg. of Silver of 10 1 oz. Krugers. Add to this that in many Western countries, there is a 21% Tax levy on silver....

Yesterday Natural gas posted its largest rally in a year from the April low, closing the oversold condition relative to the 200-day MA. It had retraced part of the advance over the last few weeks and today's upward dynamic confirms the return of demand at a progressively higher level and lends additional credence to our contention that prices have bottomed. (Also see Comment of the Day yesterday and Tuesday and the shares listed in the Natural Gas section).

I don't mind whether I am being called a pessimist or a realist...but this is the future of the EURRS, your future, the future of your children and grand-children! A very disturbing video clip indeed.

This is not only about your savings...it's about your life, your future and the dictatorship imposed by Van Rompuy, Barosso and Co. I expect to see CAPITAL CONTROLS first....as soon as 2013. Once capital is locked inside the European continent, most of its inhabitants will also be stuck....as most will be unable to leave because they will be unable to take their savings/assets along. Better think twice before you bury year head in the EU sand!

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Tuesday June 19, 2012 - few see the new victory for the technocrats in greece -

IBM candle2

Updated sections: Gold and Silver majors , Weimar Hyperinflationary depression , 

American stock markets continue to profit from capital fleeing Europe. The chart of IBM is an excellent example and is still a buy. The largest U.S. companies are beating the average stock in the Standard & Poor's 500 Index by the most in more than a decade, fueled by rising dividends, valuations 31 percent below the historical average and fear.

Today's European invasion is not made using standing army's like Hitler and Napoleon did but through the power of the money.  After the installation of a Technocrat Government in Italy, we may well see a second technocrat Government in Greece. We may have postponed the inevitable Greek exit another 6 to 12 to 24 months, but this result is NOT comforting. The battle in Greece will rage, and it will surely spill over into the rest of Europe

At the same time President Obama and Putin are deciding about the future of Syria and the Middle-East in Mexico. A lot more is at stake here than what most people understand.

The HUI or Gold and Silver Major index has confirmed its' breakout & V-bottom we announced last week as the index has now also broken through its 50 day Moving Average. Just like in 2008 we have a V-shaped bottom and I expect that by year end most of the shares in our shopping baskets will sell for prices which will be higher than those in August 2011. Next stop is the 200 day Moving Average.  Bull markets are characterized by higher lows and higher tops.

Japan ends Nuclear Freeze. Two reactors at Kansai Electric Power Co.'s Ohi nuclear plant can be operated safely, Noda declared June 16 after meeting with three Cabinet ministers who share approval authority. The utility, which serves the $1 trillion economy of Japan's second-biggest urban region, said it would immediately begin work to start one reactor. 

During the Weimar revolution, the price of Gold rose faster than the inflation rate. Inflation was at first benign, then began to grow rapidly, and quickly became a monster. What's important to us as investors is that the price of gold grew faster than the rate of monetary inflation. The data here reveal that over this five-year period, the gold price increased 1.8 times more than the inflation rate. One can't help but wonder how the people whose wealth evaporated in Germany during this time felt.They were robbed by the government - they were on the losing end of a massive transfer of wealth. Of course, there are two sides to the story, as those who held significant amounts of gold and silver were the recipients. Which side do you plan to be on?

Since Weimar Germany, there have been 29 hyperinflations around the world, including those in Austria, Argentina, Greece, Mexico, Brazil, Taiwan, Turkey and Zimbabwe, to name a few. On average, that's one every three years or so.

Monday June 18, 2012 - who pretends that if greece leaves the eu such is negative for the euro?

Updated Sections: $-Gold , Bonds USA & Germany , 

greek soldierGreece lives a neck to neck race between Grexit and no-Grexit. This was more or less to be expected. Half of the Greek active population lives off the Government. For these a Grexit would signify the end of their income! The logic is that Greece is heading straight for a CIVIL WAR.

The've invented a system whereby one can NEVER see a run on the EU-banks....European bankers and politicians are sneaky. They always were and always will be...it simply sits in their genes!

 "You don't say when you are in an emergency situation, because then you make the situation worse. So I really don't see the usefulness of being more transparent," Luc Coene, Belgium's central bank governor."

Greece  has the ability to print an illimed amount of euros through its national central bank. When the ECB denied access to LTRO money to Greek banks because of inadequate collateral, immediately turned to the Greek Central Bank and got all they wanted. The answer was called Emergency Lending Assistance, or ELA. Basically, the ECB authorizes the various national central banks to make money available to banks that are having cash problems, but with the understanding that the debt is the responsibility of the national central bank and its government.

We have all the elements for a hyperinflationary depression. Important is to understand that the consequence of Money leaving Greece, Spain, France,...is DEFLATIONARY. It is negative for the local economy and negative for the general prive level of Real Estate...while the price of Energy and food continues to rise.  In economic terms, the price level of High Order Capital goods falls while the cost of Low Order Consumer goods rises.

As long as the EU stays in denial Capital/Assets will be allowed to leave the sinking Titanic. Capital controls would signify the European Politicians have come to a point where they understand the end is near.

Iceland...members of parliament on the run from the angry crowd

note: the leader (president-minister) of 2010 has since been arrested and is serving hard time in jail.

Still invested in the bubble of Treasuries, Bonds, Saving accounts, Bank deposits,...while following participations in Real Assets paying following yields are available: Coca Cola (KO) – 2.7% ; Pepsi cola (PEP) – 3.1% ; IBM – 1.7% ; Johnson and Johnson (JNJ) - 4% ; Unilever (UN) – 4% ;  Lockheed (LMT) - 4.8% ;  Waste Management (WM) – 4.4% ; Rio Tinto (RIO) -4.1% ; BP – 5% ;  Kraft (KFT) – 3% - ATT (T) 5 % - Chlorox (CLX) – 3.6% ; Nextra – Florida light and Power (NEE) – 3.6% ; Procter and Gamble (PG) – 3.6% ; Pfizer (PFE) – 4 % ;  Novartis (NVS) – 4.7% ;  Freeport (FCX) – 3.7% ; Mc Donalds (MCD) – 3.2% ;  France Telecom (FTE) – 14.2% [some of these stocks sit in a secular down trend and should NOT be purchased at this time!].

Don't shoot the pianist for what is happening with Gold and silver shares....also here we have extreme manipulation!

It is OK to prepare for disasters; just make sure you plan for success as well. The end of the world only happens once - Monday probably isn't the day. Through recessions and depressions, flashes and crashes, we seem to persevere. "For all the well-publicized challenges facing markets and investors, financial Armageddon is still an unlikely occurrence," Colas writes. "And even if it does happen, what are the chances you really have enough gold coins, freeze-dried food and double-aught buckshot anyway?

Sub-Sahara growth may firm to 5% in 2012. Johannesburg – As global demand firms and domestic demand remains robust‚ economic growth in Sub-Saharan Africa is expected to strengthen to 5% in 2012‚ the World Bank says in its newly-released Global Economic Prospects (GEP). It foresees growth of 5.3% in 2013 and 5.2% in 2014. According to the world body‚ economic growth in the region remained robust in 2011 at 4.7%. Excluding South Africa‚ growth in the rest of the region was stronger at 5.6%‚ making it one of the fastest growing developing regions. “Higher commodity prices and improved macroeconomic and political stability in recent years has supported increased private investment flows to the region‚ with promising prospects in the medium term. "As global demand firms and domestic demand remains robust‚ regional growth is expected to strengthen to 5% in 2012‚ 5.3% in 2013 and 5.2% in 2014‚” it concluded.

North-American stock markets are still in a secular bull trend and the performances of most shares out of the RECESSION PROOF section have been excellent.  Don't jump in right now....wait for weakness.

More in the subscribers' section...

Friday june 15, 2012 - The strong Euro points into the direction that a solution may have been found for greece!

cacerolazoDebt crisis: the cost of default - rioting, sieges and death In late December 2001, the streets of Buenos Aires descended into anarchy. Thirty-nine people died in violent protests, which forced president Fernando De la Rúa to resign, fleeing in a helicopter as the riots intensified. De la Rúa had declared a 'state of siege' after thousands marched throughout Argentina banging pots and pans – in what is now termed the cacerolazo. The social unrest triggered further political turmoil: four presidents held office in 10 days after De la Rúa's resignation. Following an emergency session at Congress, Eduardo Duhalde was sworn in on January 2, 2002, providing some stability. This was the fallout from the collapse of Argentine economy, which led the South American nation to default on $100bn (£64bn) of debt – the biggest sovereign default in history until Greece's partial restructuring three months ago. Together with the default, Duhalde brought an end to the 'convertibility' system of the previous decade, which had tied the Argentine peso to the US dollar. The peso was subsequently floated, leading to its rapid devaluation. Convertibility had been the response by former economy minister Domingo Cavallo to Argentina's hyperinflation of the 1980s, which peaked at 5,000pc in 1989. It meant the central bank would have to keep enough dollars in reserve to match the value of pesos in circulation, forcing the government into a strict monetary policy...more

Debt crisis: ECB last hope as dam breaks in Spain Spain's borrowing costs have surged to record highs and are perilously close to the point of no return, threatening a full-blown sovereign crisis unless the European Central Bank comes to the rescue. 6% is an important and almost magic level.  As I explained on several occasions the DEBT has become so high that once Governments have to pay more than 7% to honor it, the debt charge rises exponentially and forces a country into default. This could happen to Spain...Advisable is to use any strenght of the EURO to exchange the currency for Canadian Dollars and/or Australian Dollars. The Yen sits technically in a bull trend but the fundamentals are too dangerous. The South African Rand evolves sideways and I still have a question mark about the medium/long term situation of the country.

The ultimate currency remains Gold and Gold has no counter party. As soon as you convert a fiat currency into Gold and shares you are OUT of any currency and into REAL ASSETS. Central banks keep interfering on an almost daily basis by selling Gold on the Paper Markets...but there is only so much they can do. Any weakness MUST be used to initiate/add to your positions. The size of the ongoing consolidation  will dictate the amplitude of the coming bull run. I expect that during the next bull run which can start at any time now, Gold will hit the top its its trading channel.

It has become CLEAR that the Western Wold has entered a DEPRESSION and we also have a PARADIGM SHIFT. Even China is unable to produce a growth figure and the Chinese Real Estate market is entering a severe crisis. Unilever is firing 800 people in the UK alone , 7 out of 10 pension funds are in trouble,  unemployment is rising, countries and banks need bailouts, The Bank of Italy authorized the suspension of payments by Bank Network Investments SpA (BNI) without communicating anything to the depositors, in the USA a money injection of 9 only has a positive impact of 1 on the economy. Those who keep chasing FIAT PROFITS will inevitable be hit hard once the system breaks or better when the Hrd realizes the system is bankrupt.. The upcoming generation has been educated with the dream image that Government will serve them from the cradle to the coffin and that Banks are sacred institutions while we see that exactly the opposite is true.

bull1Many investors have never dealt with STOCKS and have no clue of how it works. Another group thinks that one has to TRADE to make money with STOCKS. Others are convinced they have to follow up the markets on a daily basis if they don't want to loose their savings.  Stocks can be risky if you are investing in wrong sectors: finance- insurance and banks , automobile sector, real estate,..Bonds however are an accident to happen and can/will wipe out your savings in very little time. What most people don't understand is that Treasuries or Government Bonds are used to CREATE FIAT MONEY and are covering for SAVING ACCOUNTS and BANK DEPOSITS. [investors in Greek, Spanish and Italian Treasuries lost 75% of their savings in only weeks' time]. In a world where Bond holders can never loose, the people can never win.

Interest rates rise sharply as Investors (institutional and Private) shift their funds from Bonds (government guaranteed paper) into Stocks (real assets, stocks, commodities, gold). Only yesterday we mentioned oil stocks with yields up to 5% and the recession proof section shows shares with yields up to 11%. Even the dumped Spanish and Greek Government bonds cannot tip to this. Remember that in only 6 months after the Great Depression Stocks had recovered half of their losses, that it takes 26 years before Real Estate starts to recover from a crisis and Government (treasuries) NEVER pay back their debt. This is the age of Commodities, Gold, Silver and Shares...which are as usual climbing a wall of worry. Are you aware how IBM has been doing??????

More in the subscribers' section...

Thursday June 14 - - It’s genius, brilliant: Italians have to borrow at 7% to lend at Spain at 3 %

The Bailout of Spain shows what a success the EU and the euro is!?….Van Rompuy hasn't been back to the euro parliament since he said  "we turned the corner" !? His rag must be upset. Honestly, I have problems in staying polite here. "the Euro Titanic has now hit the Iceberg and sadly there simply aren't enough lifeboats." [for non-europeans: note the number of empty seats and how the representatives are litterally hanging in their chairs. The guy at the end with glasses is a belgian ex-minister president ]

Italian bank,  Banca Network has stopped all payments until July 2012! Even the ATM-machines of the Banca Network have stopped operating.

Florida: A man finds a bag with $ 150,000 and forty 1 oz. Golden Kruger Rands. Being an honest guy he brings it to the police. After a couple of weeks as it remains uncollected the police gives him back all of the Gold coins and only $ 7,000 !?

The CEO of JPMorgan Jamie DIMON (or is it DEMON) is testifying before the senate today.  The man dangerously looks like an Altar boy....

PLEASE pay attention to xxxxxxxxxxxx  with 3.9% yield and Microsoft in the Recession Proof section.

More in the subscribers' section...

wednesday june 13 - Rating agencies continue to down grade european banks and countries..but we all knew this would happen!

ItalyUpdated sections: Low Order Consumer Goods (doing well except one) , Uranium & shares (interesting) , Oil shares (check the high yields), 

The fact that it is very hard if possible at all to write a scenario about the coming collapse of Europe and such means that anything is possible. After all we’re about to experience the death of Frankenstein.

  • During the process the Euro can loose up to 40% and more in value versus the US-Dollar.
  • Before or during the process Authorities will probably instate capital controls and/or at least a financial and convertible currency (Euro, new Euro or new Drachma,...)
  • Foreign currency balances of European residents can be forcibly exchanged against the new currency (new Drachma, new Peseta,..)
  • Export of certain valuables may be restricted. (example: gold and silver)
  • We may see a bank holiday with restricted withdrawals of cash.
  • We may see renewed border controls between European countries (for national safely).
  • It might be so that the situation in Syria leads to a global war..and such would help polticians a lot to enforce certain other restrictions.

Concerns grew on Monday that Italy could be the next victim of Europe’s financial infection, leading nervous investors to sell Italian stocks and bonds and damping euphoria over a weekend deal to bail out Spain’s banks. Italian officials privately expressed concern that the 100 billion euros, or $125 billion, that Europe pledged to Spanish banks might not stop the troubles from spreading. The Euro may have 3 weeks left instead of 3 months!? ...more

It will get a lot worse before it gets better...

We have a paradigm shift. You MUST keep at least 65% of your assets in physical Gold and keep it out of political reach. You must act NOW!

Interest rate is the price one has to pay for Money. At the same time it also is an indicator for the value of the paper money. An interest rate of ZERO % means money is worth little or nothing. As a matter of fact, because the real interest rates are NEGATIVE, one should by definition keep NO buying power in Money, bank deposits, saving accounts, Treasuries.

The average net worth of the American used to fluctuate around $ 100,000. The figure has fallen by 60%.  With the accelerating inflation rate and the artificial low interest rates, Capital is being consumed at an accelerating rate both in the USA and in Europe. This is a DIRECT CONSEQUENCE of the irresponsible policies of the Authorities (politics)

For non-europeans who desire to invest in euro's: FTxxxxx yield of 14.13% is suspiciously high but even if it is reduced to an annual €1 at today's prices the share will still yield 10%.

SALES, SALES and high yields in our section of Oil shares. xxxxxxxx 4.9% yield, xxxxxxxx 5% yield , xxxxxxxxxxx 5.3% yield , xxxxxx 4 % yield.

More in the subscribers' section...

Tuesday June 12 - you only can hold a ball so long under water -

Updated sections : Crude oil (bottom?), Natural Gas , Coal , Agriculturals , Copper & Platinum , Inflation index , 

money jail"Contingency planning is underway for a scenario under which Greece leaves," one of the sources, who has been involved in the conference calls, said. "Limited cash withdrawals from ATMs and limited movement of capital have been considered and analyzed."

BRUSSELS (Reuters) - European finance officials have discussed as a worst-case scenario limiting the size of withdrawals from ATM machines, imposing border checks and introducing capital controls in at least Greece should Athens decide to leave the euro. EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasized that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen - no one Reuters has spoken to expects Greece to leave the single currency area. Belgium's finance minister, Steve Vanackere, said at the end of May that it was a basic function of each euro zone member state to be prepared for problems. These discussions appear to be in that vein.

But with increased political uncertainty in Greece following the inconclusive election on May 6 and ahead of a second election on June 17, there is now an increased need to have contingencies in place, the EU sources said...more

manipulationThere is little doubt the price of Crude Oil has been pushed down with the help of DERIVATIVES...and we probably have a BOTTOM. There are more and more indications that just like for Gold and Silver, the price of certain commodities could be manipulated by the Authorities. At a certain time however the Physical Market clashes with the Paper Market and we probably have reached that point. Crude Oil is STRONGLY OVERSOLD. We have peak oil and whatever the West does not consumed, is used by the East.

Spain has been (for the time being) rescued. Next on the bucket list are Italy and France. I have no intention to keep on detailing the European drama as all was explained months and even years ago. To be honest, I am happy that other financial news sites and even the media took over. Now that it has become visible to all time has come to plan for the future. Remember that a good pilot always stays ahead of the airplane. Especially in bad weather conditions and zero visibility...and warns the passengers the ride will be bumpy! And bumpy it is and will stay.

The situation in the USA is NOT IMPROVING ! Only in the media things go better....especially in the European Media. Understand PROPAGANDA!? The talking heads surely don't....

Interesting is that it becomes obvious that even with DERIVATIVES it becomes harder en harder to trick the markets and the figures/statistics. Just compare the CCI index now and how it corrected during the 2008 Lehman Bros. deleveraging...more

In the subscribers' section of LONG TERM commodity charts, the long term CCI (inflation index) is interesting and revealing for the near future (see the blue arrows) .We provide INVESTMENT ADVICE..no ROULETTE assitance and don't promise readers astronomical profits but these long term charts are worth their weight in Gold. Especially as they all point in one direction! ..more

More in the subscribers' section...

Monday June 11 -  Quantitative easing to infinity is guaranteed -

last tango in paris

Updated sections : Investment Pyramid ,

In the eyes of the leaders of the EU there is total and complete madness (N. Farage). Americans may not for one second think and hope they will escape...they are the next domino to fall after the Euro-zone. Belgians should actually be ashamed they have delivered the rag who is president of the Asylum.

The EU force feedsSpain with Bail out funds. At least this is how the operation is sold to the public.  The good news is that the Autorities WILL NOT let any Bank go bankrupt nor will they allow a bank run to happen. Each time such an action buys the Alterted Investor time  to move his savings into security...before Hyperinflation starts.

What is happening today is nothing more than what in 2004 I forecasted would happen. We're about the see the end game. No need to detail the situation as it now should have become visible to all. Those who don't see it belong to the 1st or the 3rd group of passengers on the Titanic. They are about to drown (loose their savings) . But we have a lack of survival equipment (gold/silver).

French cities have problems in getting extra credits. The situation is so bad they try to borrow money in China!? Interesting to know is that many french cities played the derivative game AND LOST. Whatever is written, no doubt that Hollande will be at the origin of the biggest "negative" surprise in Europe. Part of the problem is the consequence of the bankruptcy of DEXIA who traditionally was the purveyor of money for french and Belgian cities. Banks and Authorities will SINK together. What we see is the Last Tango. Are you prepared???? [the city of Chartres urgently needs € 300 millions].

The American Dollar is no safe heaven and will die as a consequence of the death of the Euro. Imperative is that one follows the Investment Pyramid & Risk Pyramid and ensures the savings are out of political reach. Remember at all times that when he was short on money, Napoleon legally took all of the Properties of the Church to survive.

The trigger to the crisis is the Euro and Greece. A default of Greece will result in the activation of the Credit Default Swaps, kill the Derivatives and the banks who manufactured these.

More in the subscribers' section...



Friday June 8  - Ben and goldman, jpmorgan...what a joke!...and people keep trusting them???

sharksMy experience is that the worse it gets, the more "THEY" will lie and the more they will manipulate.  This all points to an ACCIDENT WAITING TO HAPPEN.  Nothing has changed, except that all is getting worse.... This was exactly what happened in the 60's and 80's when Europe experienced devaluation after devaluation. PROPAGANDA goes in crescendo when the pants of the manipulators get wet. This is the main reason why one must be extremely careful with Treasuries and Fiat Money.... How many remember October 1989 when the USSR went bankrupt over night!? How many remember the drama in Argentina where Banks were closed for a week and withdrawals were limited/impossible. How many remember Operation Gutt and similar operations after WW II where severe action was taken by Government in order to allegedly purge the War profits out of the economy? "Don't think that this time will be different!"...the more critical it all gets, the more volatility we shall see...

An excellent life example is Spain. While Spanish Authorities pretend there is "absolutely no need for help", financial media already know the country/banks need at least $ 100 bn to survive. Fitch downgrades Spain by three notches and blames European leaders for 'absence of a credible vision' for euro.  A serious mishandling of the debt crisis by European leaders led Fitch to axe Spain’s credit rating by three notches and issue a warnings on the stability of country’s banks, debt levels and economy...more and Ben Bernanke says Fed ready to act if crisis intensifies. The US central bank is prepared to take action if the “significant risks” posed by the eurozone crisis threaten the country’s recovery, Federal Reserve chairman Ben Bernanke said...more

If you see how children and people  are being slaughtered in Syria while there is no intervention whatsoever, do you really think they give a damn about your savings? Do you know what CANON MEAT is!?

for rentThere are two ways to destroy a city: either you bomb it or you control the rent. Real Estate is a High Order Capital Good and its value ALWAYS suffers during a inflationary depression. During the Weimar revolution a landlord  one months' rent could hardly buy a loaf of bread. Most people fail to understand it is impossible to deflate a House and to move it away out of political reach....

I am wondering how the average investor is surviving!?  Just cleansed out the inbox of an email account:  video clips, Facebook messages, Twitter messages,.... it really has become an impossible task...add to this the nonsense and stupidity sold to the public by the talking heads which often don't know what the difference is between a bond and a stock....what a world it has become...

Technical indicators for the Gold and Silver sector are "Short Term Overbought". Add to this all the Traders who think they must cash in on their profits before the weekend starts and a little help of the Gold Pool and Central Banks so one can classify the reaction/correction we had yesterday as NORMAL. In my opinion the Media are giving Bernanke to much credit...probably because they have no clue of what is happening and how the financial markets function.

More in the subscribers' section...

Thursday June 7 -this will blow up in their face !


Updated sections: Silver , 

Ever since the beginning of the financial crisis and quantitative easing, the question has been before us: How can the Federal Reserve and ECB maintain zero interest rates for banks and negative real interest rates for savers and bond holders when the US government and EURO-Zone is adding trillions to the national debt every year via its budget deficits? How is it even possible to imagine this can have a Happy ending!?

Most people fail to understand that the negative interest rates not only chases capital away but it also debases the reserves of the Pension funds and (re)-insurance companies which are already in big trouble. In fact either the capital flees, either it is consumed. From an economic point of view it is impossible to orchestrate a recovery without CAPITAL. Elementary Mister Holmes!

The Bank of Spain has predicted that house prices will continue to fall for the next two years. According to official figures, house prices have fallen by an average of 15.4 per cent since the first quarter of 2008, which is a staggering 20 per cent after inflation. (according to our information house prices have fallen by at least 30%to40%). But now, bank boss Jose Luis Malo de Molina has predicted prices could actually fall a total of 30 per cent in real terms before they start to bottom out at the end of next year. “The correction in prices has still to run its course,” he said. The property market is continuing to struggle with the over-supply of houses built up during a massive boom that turned to bust at the start of 2008.“There are between 800,000 and 1.1 million unsold properties, which continue to exert pressure on prices,” added Malo de Molina.

More in the subscribers' section...

Wednesday june 6 - under construction - we are about to live the death of the Gold pool -

Everything is ready for the Mania...the Central Banks and Gold pool are loosing their grip on gold.

Spain warns of credit freeze. Spain's Treasury minister appealed to European leaders for financial support Tuesday, saying the country's credit markets are seizing up. The yield on Spain's 10-year bond has been flirting dangerously close to the 7% mark that smacks of default anxiety. Over the past week, the 10-year yield has been at its highest level since November. Treasury Minister Cristobal Montoro told Spanish radio station Onda Cero that it is "technically impossible" for Spain to bail itself out. He said that Spain needs to get more money to improve its debt situation to open the bond markets back up so people can invest in the country.Last week, credit rating agency Egan Jones cut Spain's credit rating to B from BB-, and Bank of Spain Governor Miguel Angel Fernandez Ordonez said he was resigning from his post a month early...more Spain Tuesday urged euro-zone partners to act faster to help support its enfeebled banks, with Budget Minister Cristobal Montoro saying that the government has effectively lost access to capital markets because of..more

Going to Turkey on Holdiday!? why not open a bank account. Now, retail investors can not only hold their gold jewelry, bars and coins in an account at a bank, but can also accumulate gold in accounts, with tax-free 24-carat gold transactions. People can choose among gold deposit accounts, gold checks, gold credits, gold transfers, gold gram accounts and protected capital gold backed gold funds. Now, total gold deposits in the banking sector have reached an estimated $7.69 billion.

More in the subscribers' section...

Tuesday june 5  - Physical Gold and Physical Silver are the only available escape routes -

alpha bank runThe absolute worst case scenario for the authorities is a bank run. It terrifies all involved, because they can spiral out of control faster than governments can react to stop them, save for the most Draconian measures. They also prompt banks to liquidate whatever assets they can, revealing the truth about what their "assets" are actually worth. No one wants to find out what the market will really pay for them. We're seeing this now in Spain, where according to Bloomberg, "Many Spanish banks are avoiding property sales so they don't have to "mark to market" valuations. We're seeing this in Florida where a same pattern is used. Potential buyers making an offer on a foreclosed property are simply ingored....

This is why the Authorities do the impossible to keep the general level of interest rate as low as possible. The global Minsky moment has arrived. Debt accumulation eventually leads to financial crises. You don't have to be an economist to understand the crux of Minsky's theories. As an economy grows it takes on increasing amounts of debt. The point eventually comes when the cost of servicing that debt can no longer be met by that economy's productive capacity - that's the Minsky Moment, and we're watching it play out all over the world today. When bond yields spike bond investors looking at the a country's outstanding debt realize  that it can't possibly be honored. That there is no way a country can continue to pay the interest on its debt load and there was no way the bond market can keep pretending everything is ok, like it currently does with the UK, US and Japan… for now.

Domino, domino,...Ireland, Greece, Spain, Italy, Portugal, France, Belgium, The Netherlands…that how the mechanism operates. Bad luck if you’re the 1st domino and you did not see it coming. An IDIOT you are if you’re standing further down the line, you see the Domino’s falling and you don’t take any precautions…because your Banker and your Minister-President pretend there is NO PROBLEM!

All Governments are the same. Just like rats they lie and fight when cornered.  Especially when realizing they cannot borrow themselves out of debt and the taxation levels have become too high. At that point, when the last domino is about to fall the People wake up and terminate the Government whether it is  absolutism, communism, socialism and even democracy (democracy is the law of the dumbest). As we saw in Libya, Egypt and Syria, Government NEVER surrenders willingly and will use the army and police forces to try to safeguard their power. The French revolution, the Independence of the USA, the independence of Belgium...it all happened as a result of an economic crisis.

We have a GLOBAL SLOWDOWN and I expect that countries like China will suffer more than the West because they are the High Order Capital goods manufacturers. Fractional Reserve Banking and the Creation of Money out of thin air has worked itself as a cancer throughout the whole world….Only when the MISALLOCATED FUNDS have been cleansed out of the system we shall see a recovery. Dramatic is that most of the time only a WAR is capable of purging the system.

During the last economic and financial crisis before the big Wars  “they” also issued GOLD-linked bonds.  Is surely is possible that ‘they” could – if they suspect this will make their crap sell better – again issue similar debt certificates. However the bulk of the Gold guaranteed bonds emitted before the Great Wars all became worthless. If you have no physical Gold, you have no money!

socialismWhat we live now it the dead of Socialism like Russians lived the end of communism it in the months before October 1989 At the same time we experience that Democracy like we know it, is in fact a very poor system. Socialism is dying because the money of the others has been spent....They killed the Goose with the Golden eggs.

The idea that a HOME could be bought and cherished emerged after the Great Depression when they introduced 30 year Mortgages in order to resurrect a failed real estate market. Out of the same time emerged the idea that investing in Government Bonds was absolute security and that BANKS were the safest place to keep your savings. There is not the slightest doubt that the Herd will think completely different in 5 years from now…..and opposite to the spirit developed after the Great Depression.

Digital money and digital bank accounts are not and will not be imposed by groups like the Bilderbergs or other influential rich people. Only Government (and banks) pursue this because DIGITALIZATION is the ultimate WET DREAM of every politician. Once in place, they can tax the last cent out of you pocket. Physical Gold and physical Silver are the only available escape routes.... There are off course still more sophisticated escape routes available. However these are not accessible to the average investor.

Government will spent any cent it can borrow, tax or steal. The more money it can lay its hands on, the more it will spent. This is a matter of survival for every elected politician. Until the politicians (especially the father to son politicians) are eliminated and the power is returned to the people the crisis will get worse….

We have Nigel Farage in Europe and now also Mike Bost in the US. Same story, other side of the Atlantic. At least in the USA we don't have the empty seats we see  in Europe but the average IQ of the listeners seems to be as low as in Europe.

More in the subscribers' section...

Monday June 4 - the dramatic jump after the 3 taps - remember to refresh your page to see the latest charts !!!!

wise men goldonomicUpdated sections: Crude Oil, $-Gold , Silver CHF-$ and €(clear bottom) , €-Gold (a dramatic buy signal or a dead cat jump?), Aussie-Gold , Swiss-Gold , ¥-Gold , ZAR-Gold , £-Gold , Worlds stock market indexes (more red)

Where are the idiots pretending Gold  was finished, that the bubble had busted!? A rebirth of Gold we have. Remember the ISLAND REVERSAL I mentioned recently...this is exactly what we have. An excellent example can be found in the $-Gold section for the GLD etf. Same story for gold and silver shares....NOW is the time to either add to your positions and bring down your average cost or to initiate new positions.

Worrying is that Gold seems to come awake each Friday (it did so for the last two) or this indicates that the Investors FEAR something may happen during the weekend...and I cannot dismiss it may.

Worrying also is the fact that Gold is breaking loose from the Dollar/Euro balance and also from the price evolution of Commodities like for example Crude Oil. Today, Crude Oil was down but gold was sharply up.

QE to infinity ! Worrying also is the fact that Gold went sharply up while the American Job data were negative. Important is to understand that we have come to a point where the CHEATING MARGIN of the Authorities has become inexistant...or the Job figures can no more be tricked by the Birth figures....and that the effect of Quantitative Easing II  is over. Expect to see QE III soon !...more If the Obama administration doesn't act rapidly we may see Romney as President of the USA. If such happens hell will break loose.

Soon Bonds and Treasuries won't even be worth the Ink and the paper. By the time Treasuries become worthless your bank and saving deposits will have become worthless...Real Estate will have lost more than 50% of its value and the market will have dried up completely. Best case scenario we won't see a Civil War....see article Zero Hedge.

new pesetasSpain will leave the euro first. Spain is too big to rescue, and doesn't want it anyway. I lived in Spain and know they don't take shit as and answer. The Spanish are a lot more likely to pull out of the euro than the Greeks, or indeed any of the peripheral countries. They are too big to rescue, they have no political hang-ups about rupturing their relations with the European Union, they are already fed up with austerity, and there is a bigger Spanish-speaking world for them to grow into. There are few good reasons for the country to stay in the euro — and little sign it has the will to endure the sacrifices the currency will demand of them. Spain is politically secure. For many countries, euro membership is more about politics than economics. The Greeks stay in because it locks them into Europe (rather than being part of the Turkish sphere of influence). Latvia wanted in because it made it part of the EU rather than being dominated by Russia. For the Irish, it is about separating themselves from Britain. The Germans stick with the euro because the EU still represents a break with its troubled past, even if that is fading for the younger generation. For the French, the currency boosts their influence in a world where medium-sized Europeans states don’t count for much anymore. But Spain does not have any of those issues. It can take or leave the euro and the EU depending on whether it works or not. And right now it clearly isn’t working. Spain has bigger horizons. The Spanish economy looks partly to Europe. But it looks just as much to the booming Spanish-speaking economies of Latin America (and indeed the huge Hispanic market in the U.S.). Rather like the U.K., Spanish business has always looked to the global rather than the European market. Why tie yourself to a failing project when there are much bigger opportunities out there?..more

The next problem Greece and Spain face is a disruption of the Electricity and Energy supply.  No electricity results in NO INTERNET and no energy results in a lack of food (transportation fails). In Southern Spain the shelves are empty after about 3 DAYS. [Before the Sanctions Spain and Greece used to buy their Oil in Iran]

The European Central Bank has secretly distributed € 100 bn to Greek banks and billions more in secret to other European banks and, in doing so, has gained great "sway over eurozone politicians" . [the financial times] Remember we STRONGLY ADVISED to stay away of ALL EUROPEAN STOCK MARKETs and EUROPAN STOCKS (see exceptions).

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Friday June 1, 2012 - The signs of chaos loom -

dead euroEuropean Union could soon experience a collapse similar to what happened to the Soviet Union. Remember it happened overnight some dark day in October 1989. What we live now is the death of Western Socialism...This is the state of affairs in Europe: bankrupt nations trying to bailout bankrupt banks or looking for bailouts from funds that are backed by other bankrupt nations.What could go wrong?

Financial markets are driven by Greed, Propaganda, Misinformation and manipulation. Financial markets can stay longer illogical than we can stay solvable. Of course an exception applies to the Banks and Governments as they can print money out of thin air and have Derivatives and paper market which can be manipulated.  They by definition can survive longer..but when they die the debacle is terrible. History itself is a proof of this statement.

capflight spainMoney has been flowing out of periphery eurozone countries like Greece for some time now. But evidence it is no longer entering wealthier eurozone countries, but leaving Europe entirely, threatens to dangerously intensify the crisis.

“Anecdotal evidence suggests that over most of 2010, 2011 and early 2012, the largest portfolio shifts out of peripheral Europe took place into [German] Bunds and surrounding credits,” said Peter Schaffrik, head of European rates at RBC Capital Markets. “Yet, there is accumulating evidence that this behaviour is changing and actual capital flight out of Europe (rather than within Europe) is taking place.” Over the past couple of weeks $ 66 billion has left Spain...and this is just the beginning and only Spain...

Deepwater oil production costs $70 to $85 per barrel. To produce oil from tight oil formations in the United States such as the Bakken shale costs at least $80 a barrel. And production from Arctic oil reservoirs, coal-to-liquids and gas-to-liquids projects, and biofuels are even more expensive. Luckily the 7 sisters (big Oil companies are increasingly becoming Natural Gas companies). The price of crude oil has been coming down too much, too fast and too deep. All indicators are oversold an a correction or at least a consolidation at the present price level has to be expected. We have PEAK OIL!

This for all those who believe Gold is in a Bubble!


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Soon Bonds and Treasuries won't even be worth the Ink and the paper. By the time Treasuries become worthless your bank and saving deposits will have become worthless...Real Estate will have lost more than 50% of its value and the market will have dried up completely. Best case scenario we won't see a Civil War....see article Zero Hedge.

new pesetasSpain will leave the euro first. Spain is too big to rescue, and doesn’t want it anyway. I lived in Spain and know they don't take shit as and answer. The Spanish are a lot more likely to pull out of the euro than the Greeks, or indeed any of the peripheral countries. They are too big to rescue, they have no political hang-ups about rupturing their relations with the European Union, they are already fed up with austerity, and there is a bigger Spanish-speaking world for them to grow into. There are few good reasons for the country to stay in the euro — and little sign it has the will to endure the sacrifices the currency will demand of them. Spain is politically secure. For many countries, euro membership is more about politics than economics. The Greeks stay in because it locks them into Europe (rather than being part of the Turkish sphere of influence). Latvia wanted in because it made it part of the EU rather than being dominated by Russia. For the Irish, it is about separating themselves from Britain. The Germans stick with the euro because the EU still represents a break with its troubled past, even if that is fading for the younger generation. For the French, the currency boosts their influence in a world where medium-sized Europeans states don’t count for much anymore. But Spain does not have any of those issues. It can take or leave the euro and the EU depending on whether it works or not. And right now it clearly isn’t working. Spain has bigger horizons. The Spanish economy looks partly to Europe. But it looks just as much to the booming Spanish-speaking economies of Latin America (and indeed the huge Hispanic market in the U.S.). Rather like the U.K., Spanish business has always looked to the global rather than the European market. Why tie yourself to a failing project when there are much bigger opportunities out there?..more

The next problem Greece and Spain face is a disruption of the Electricity and Energy supply.  No electricity results in NO INTERNET and no energy results in a lack of food (transportation fails). In Southern Spain the shelves are empty after about 3 DAYS. [Before the Sanctions Spain and Greece used to buy their Oil in Iran]


The European Central Bank has secretly distributed € 100 bn to Greek banks and billions more in secret to other European banks and, in doing so, has gained great "sway over eurozone politicians" . [the financial times]

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