NEWS SEPT 2014 (public)


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Tuesday September 30, 2014 - Chinese Gold Demand Explosive -

Updated sections: As protest we have decided to close the Facebook account of Goldonomic this week !

bonnet daneWhen I was at University, anybody not understanding following principles was merciless sacked! Today even the Professors teaching Economics don't know what inflation and deflation are !? Shame on them.

  1. Inflation is a more than proportional growth of the money supply.
  2. Deflation is a more than proportional decrease of the money supply.
  3. Price increases respectively price decreases are a consequence of a change in Money Supply.
  4. It is IMPOSSIBLE to measure Inflation and Deflation by measuring the fluctuations in prices.
  5. A Hyper-inflationary policy is only possible with a Deflation Propaganda.

 more about Deflation and Inflation in the Education section !

Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Monday September 29, 2014 - The misery index flashes warning signs which are worse than in 1929 ! -

Updated sections:

The US accused of manufacturing Ebola... Medical care and Weapons are gigantic money generators! Half of the American budget is spend on defence.

Three years after Japan closed all of its nuclear plants in the wake of the Fukushima meltdown and Germany decided to shut its industry, developing countries are leading the biggest construction boom in more than two decades. Almost two-thirds of the 70 reactors currently under construction worldwide, the most since 1989, are located in China, India, and the rest of the Asia-Pacific region. Countries including Egypt, Bangladesh, Jordan and Vietnam are considering plans to build their first nuclear plants, according to Bloomberg New Energy Finance in London. Developed countries are building nine plants, 13 percent of the total.


In Japan there are already more casualties due to the eruption of the Ontake Vulcano than we had in Fukushima. Does the Global Heating Herd realize this?....The answer is NO. Even if you show pictures of the growing ice cap on the North pole, they will continue to listen to the Politicians !?

Power is needed as the economies of China and India grow more than twice as fast as the U.S. Electricity output from reactors amounted to 2,461 terawatt-hours last year, or 11 percent of all global power generation, according to data from the Organization for Economic Cooperation and Development and the International Energy Agency. Other countries ( Germany, Spain, Belgium,...) are learning the hard way that green energy is nothing but a big, very expensive joke and are either keeping the existing Nuclear power stations open and/or some are planning/building new ones. Governments in Germany and Spain have decided to stop wasting the people's money in building Wind-farms and Solar Stations.

When Stock markets crash, prices may come down by 50%-60%-70%...and there will be NO BIDS.  Therefore the odds are that you may have to keep Common Shares for the coming 10-15 years. One has to carefully consider which stocks one should acquire. xxxx is a good example of a safer share and should be acquired during stock market corrections.

We will see some kind of correction of the Stock Markets. However, I don't think we're ready for a Major Crash yet. When the crash comes, it will simple BE IMPOSSIBLE to sell shares. I remember the crash/correction of October 19, 1987 like it was yesterday : there simply were no BIDS, ZERO DEMAND !  Luckily, as in those days the amount of DERIVATIVES was quite low, they were able to stop the crash. Those who understood what happened and bought shares, made a fortune. Others panicked - mainly because they did not understand what was happening - , sold out their positions and lost a fortune. Assuming we have a CRASH tomorrow or at some time in the near future, the scenario will be a completely different one...because this time we have $ 1.4 quadrillion DERIVATIVES which will act as a catalyst to the Bonfire....Also, this time not only the banks but even the FED, the CENTRAL BANKS are bankrupt !

Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Friday September 26, 2014 - Physical Gold -

Updated sections:

If Gold really was a barbaric relic, why do Russia, China and India buy such large quantities? are they nuts...or are you for not having/buying any?

gold russia


Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Thursday September 25, 2014  - We did forecast this war...only People are not scared enough...for it will get a lot worse!

Updated sections: Euro , Crude Oil price , Agriculturals , 

You didn't have to be an Einstein to forecast this growing World War (China and Japan are preparing their war in the South Sea).  Take a history book and open it on page 1830 for the receipt. Take a depression, add a falling real income, add rising youth unemployment, add expensive energy, add poverty, use Religion instead of pepper....and stir it so it all gets worse each day.

Second phase : economic Crisis:

During the second phase of the crisis, another large sum of capital will "evaporate" from the market, because a company which is going bankrupt will leave nothing for shareholders and very little for its bondholders. In the second stage of the crisis, unemployment will begin to grow along with the wave of bankruptcies...more in the Education Section [Ludwig von Mises]

A Hyperinflation policy is only possible with a Deflation Propaganda

What we see now is NOT a DEFLATION, it rather is a slow down of the economy because consumers are spending less. They are spending less because there is less employment, because the real spendable income is lower, because there is a feeling of insecurity about the future. Only when the consumers sees that prices are not coming down and will continue to go up, they will loose all faith in Fiat Money and massively start to exchange fiat money for REAL ASSETS . Mainly Low Order Consumer Goods: food staples, energy,...

 Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.   

Wednesday September 24, 2014  - The recovery sits right around the corner !? -

sinking feelingUpdated sections: Recession Proof shares , 

A recovery? Not even in your wildest dreams !

About 50 million Americans live on food stamps. That is more than the Total Population of France. The majority of Americans has not even $ 6,000 in cash or near cash and cannot survive for 3 months.

Last Summer Spain had to seize all the Social Security savings of the Spanish people to pay off its debt.  The Polish Government committed a similar holdup....Spain went so far to levy a retro-active taxation on all bank deposits.

I expect the Global situation to deteriorate rapidly starting next month (October)

There has never been so much debt and it keeps growing in an exponential style. We have an economic depression (and not a recession like the Mainstream Media and Authorities like to paint). The Middle-class is being destroyed. Unemployment keeps going up. In the United States 50 mio (almost 1/3rd) of the population lives on food stamps. There are more poor people in the USA than people living in France. France is bankrupt and French analysts expect the situation to deteriorate towards the end of the year. In France we may soon have "a situation" where the Army will have to rush in to maintain order.

Worthless Currencies are  kept alive with Swaps. Central banks buy shares to keep the stock markets going...and rig Gold to give the public the impression all is well...

Crime is growing as a consequense of unemployment and growing poverty. Don't adventure yourself at night in West Palm Beach (one of the richest places in the USA). In France jewelers, bakeries, tobacco shops, are being attacked for peanuts. Wars (Ukraine, Syria) serve to camouflage the reality.

food stamps usa financial security

Europeans are Tolerant but European Muslims are Intolerant. Ten years from now, at least half of the babies born in Rotterdam (Netherlands) and Brussels (Belgium) will be Muslim.

muslims in europe rise of islam in europe bnp muslimdemographics9
Remember this when you buy or renovate that house: By 2025 (only 10 years from today),  1/3 rd of all European children will be born to Muslim families !

 Are you in a process of securing your savings or are you still chasing these extra PERCENTAGES? Got Gold? are you holding it out of political reach?

Important Technicals:

  • Will markets pivot in favor of the Gold & Silver sector? see subscriber's section for an answer.

 Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.  

Tuesday September 23, 2014 - Capital is accumulated labor & Gold is money -

shanghai gold exchangeUpdated sections:

China Moves To Dominate Gold Market With Physical Exchange. China is slowly moving to dominate the global gold market and it is important to join the dots regarding a few key recent developments in China relating to gold.When the International Board of the Shanghai Gold Exchange (SGE) was launched last Thursday September 18 during an evening trading session, it was notable that the first transactions were put through by a diverse group comprising HSBC, MKS (Switzerland), and the Chinese banks,  ICBC, Bank of China and Bank of Communications. MKS is the Geneva headquartered precious metals trading group that also owns the large PAMP refinery company in Switzerland. There are reportedly 40 international participants signed up to trade on the SGE International Board (SGEI), but the SGE hasn't specifically confirmed the identities of all participants...more In how far will this counter the paper rigging of Gold on the LBME and the COMEX ?

 While European and American Reporters travel to Afghanistan, Bangladesh, India,...to accuse the working conditions in the local factories, CHINESE are opening factories in Africa and train the employees in a Chinese military style...Money and Profit keeps the world go around and when Labor becomes too expensive in China, Capital and factories will seek a solution and like today, built plants elsewhere in the World...like in Africa.

Breaking news:

Europe is in quite an uncomfortable position nowadays. 

  1. The most manifest one is that there is a collective action problem at the European level. Many of the negotiations, very complicated ones, have moved to more discreet technical committees, where national powers are still very blatant and outspoken.
  2. A stark weakening of pragmatic elites, the central parties in the member states. They used to bear the European project. The electoral shift is really sliding to a critical point. The electoral share of the central parties  will become smaller than a colorful array of populist, conservative and extremist parties.
  3. The fraying of the welfare state, as a system of redistributing economic opportunities. The bottom fourty percent of the European population are losing out rapidly in terms of purchasing power and employment opportunities. That reverses the positive current that we witnessed in the last six decades.
  4. The altering of the economic balance of power at our expense. Europe bit by bit becomes less competitive, and more dependent on external debt. Government debt has become the most successful export product of the EU.

Important Technicals:

 Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.  

Monday September 2, 1014  - Junkers himself admitted in public LIE is a tool politicians should use -

brainUpdated sections: $-Gold , € - Gold ,

Psychologist believe the human brain simply blocks out traumatic happenings a human being is unable to assimilate. Somebody who for example lost his fingers or part of a foot will normally not remember the seconds it happened. Similar block-outs happen to people involved in a severe automobile accident...more

There is War in Syria and people in Turkey act like they will never become involved, like War will never reach their homes. There is war in Ukraine and people in Poland and other Western countries act like they will never have to deal with War.

Stock Markets keep going up and still...people act like these will never come down again.

So we did – as we expected - get a Scottish NO. The analysts of Credit Suisse got it wrong...like they get a lot of other things wrong. The majority (the herd) is like a Scottish bagpipe player. Lots of noise, but little or no action. One must kick the ball hard before the brains are told and we get some action.The irony is that once there is acute pain, it will too late to act.

A Scottish YES would have placed the EU in exactly the same position as the USSR in 1989. For this reason CHEATING was a MUST!

No Hoax and you can't believe your eyes... they call this CRAZY thing a Democracy!? (thks LT) . An idea of what is to happen in Catalonia, Corsica,...

Are you HERD !? note: those who are aware of the danger but still not act, are also part of the HERD !

The majority of the herd is drowning in immobility. There is fear for change, there is fear for the unknown. Even when is the enemy stands right next to their bed and their city bombed, there will be little or no action. Like to point the finger at the flock who is taking steps. The Government knows this only too well .... and takes thankful maximum financial advantage.

The best and brightest entrepreneurs are the first to take steps and act. As the situation worsens, more people take action. However , as soon as the Majority starts to act,  Government intervenes and closes the exists , borders (capital controls)... Welcome to the DDR.


Experience learns that the financial markets in general 'correctly' predict what is politically or economically to happen. In that sense, the Great Crash of 1929 brought an abrupt end to the LALA-LAND of the Twenties and rushed the world into the Great Depression. Just as now, prior to the great crash, the economy was already in a depression. Just as now, there was a record number of people who bought shares on credit. Just as everyone lived with the belief that life  was ok and things would never run out of control and that – if requested - the Government would come up with a solution.

Total Credit Market Debt to GDP

Better three hours too soon than one Second late!

Next month is October and the Halloween month has a bad fame for StockMarkets. Last Friday the stock markets behaved in a rather weird way. Unless the figures are incorrect, we had new highs with record volumes on the SALE side. Only the Dow Jones showed more buyers than sellers. ....more in the sybscriber's sections.

Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Friday September 19, 2014 - the day is close where the paper and physical price for Gold will clash and the shorters will have a religious experience -

chinese goldUpdated sections:

SINGAPORE (Reuters) – China will launch its international gold exchange 11 days ahead of schedule, sources said on Tuesday, racing ahead in the scramble to set up an Asian bullion benchmark as rival Singapore is forced to delay its gold contract due to technical issues.Asia, home to the world’s top two gold buyers – China and India, has been clamouring to gain pricing power over the metal and challenge the dominance of London and New York in trading. The state-run Shanghai Gold Exchange (SGE) will launch the global gold bourse in the Shanghai free-trade zone on Thursday, two sources familiar with the matter told Reuters. The SGE had initially planned the launch for Sept. 29...more

Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Thursday September 18, 2014  - and the winner is Panama !

Under construction:

Panama leads the world in four of the five well-being elements (purpose, social, community, and physical). Sixty-one percent of Panamanians are thriving in three or more elements - 17 percentage points ahead of the next highest country, Costa Rica.

2014-09-17 07.55.24 amPanama is a vibrant, buoyant central American country with a population just under 4 million. Panama city is modern, has American style shopping Malls where American and European products are offered to the public. The city has a modern, safe and clean Metro, plenty of European-style restaurants and is the financial center of the Caribbean and Central America.

Panama city and Panama are extremely safe.

IslandandbeachIn about one hour drive, you can enjoy the Caribbean Sea and/or the Tropical forest. The population pyramid is, contrary of what we have for Europe and the USA, extremely sound. No doubt it's large base will support Progress and Real Estate prices for the next 50 years. Also, all the best and wealthiest people out of Venezuela, Argentina, Colombia and surrounding RED countries are all migrating to Panama...and adding to the melting pot. In my opinion Panama is becoming the Switzerland of the 21st century.

At this time there are several Immigrations programs. Since end of 2012 we have assisted several families to obtain their permanent residency. Interesting is that one doesn't have to go and live in Panama once the residency has been granted. This second passport and residency can however be activated at any time in the future. Panamanian Residency comes with extremely interesting fiscal advantages...and Panama LOVES entrepreneurs.

We have been informed that this month the Immigration laws are being reviewed and discussed by the Panamanian Government and that legislation could be changed. For this reason, if you are planning to go for a Permanent Residency, DON'T DELAY the action. Better be three days early than one second late.

panama-population-pyramid-2014 belgium-population-pyramid-2014

The Population pyramids of Panama and Belgium are well worth a discussion. Belgium has a narrowing Population pyramid and exponentially growing outlays. The Baby boomers are all beginning to retire but there are no provisions (savings) and the cost of social and medical assistance keep rising as a consequence of Financial Inflation. Even worse, over the past decennial the Social Security system has been looted by the Authorities and previsions are basically gone with the wind....Belgian Intelligent Psychopaths went so far to limit access to Universities for Medical Students and as a result, today there is a shortage of Medical Doctors/Staff. Also, the narrowing population pyramid spells no good for the Real Estate sector. Demand for Housing will fall while supply will continue to go up. Once the children are gone, the parents relocate into smaller houses which are cheaper to maintain and cost less energy. As people grow older, they pass away and increase Supply even more. Real Estate is doomed...

West-Europe has a growing shortage of Medical Staff and Money

Panama has a widening (positive) Population Pyramid and little debt (50% of GDP). Taxation is low (max corporation tax is 30%) and tax on non-territorial income is ZERO PERCENT. As a consequence Multinationals move their headquarters to Panama city and push up demand for housing. Panama is a modern melting pot. Immigrants are entrepreneurs and young dynamic people which are fed up with those running countries like Venezuela and Argentina....and they come to start a new life in Panama. Demand for housing is rising and supply is still limited.

2014-09-17 usa 2014-09-17 southern europe

If you have property in Southern France, Spain, Italy or you plan to acquire some, better think TWICE. Real Estate in the USA sits in a secular downtrend and I expect prices to continue to come down until 2033. Note the difference of the Population Pyramid between the USA and Southern Europe. If prices have been crashing in the United States, nothing good is to be expected for the near future in Europe. What the European Pyramids don't show, is that the decrease in base has somewhat been tempered by immigration of Muslims....Therefore the REAL situation is even WORSE. 

If Real Estate prices don't crash, expect a minaret to be built next doors.

 Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Wednesday September 17, 2014  - What plan B ? -

the-market-crashUpdated sections:

After Japan, comes Greece, comes Italy, comes Spain, comes Portugal, comes France, comes Belgium,...comes Europe,..comes the USA   The OECD has drastically cut its growth forecast for Italy. The depression will drag on though most of 2015. The economy will contract by 0.4pc this year. It will remain stuck in the doldrums next year with growth of just 0.1pc. If so, Italy’s public debt will spiral to dangerous levels next year, ever further beyond the point of no return for a country without its own sovereign currency and central bank. “This is catastrophic for the finances of the country. We’re heading for a debt ratio of 145pc next year,” said Antonio Guglielmi, global strategist for Mediobanca...click here for more

The problem we have is not only a structural problem of DEBT, Big Government, Depression, (hyper)inflation,...it's also a problem of Demography or Aging Baby Boomers and a problem of Envasion (Immigration).

Following chart for those who still believe the World can survive on GREEN ENERGY. Note that Wind and Solar CANNOT function without an alternate source of (dirty) energy.

2014energy cliff

Important technicals:

2014-09-16 b

 Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Tuesday September 16, 2014 -  What if inflation starts to pick up but the economy does not? today it is impossible to raise interest rates !

petrodollarUpdated sections:

The sanctions of the West on russia is a catalyser for something which is happening any way: the US-Dollar and Euro are a death man walking. Nothing however will happen as long as Oil is traded in US-Dollars and the USA and the EU control the exchange rate with the help of SWAP agreements. The Dollar/Euro will continue to fluctuate inside the converting technical formation.

If there is no gold left to guarantee the US-dollar, one has to think of another plan.

Each day the negative ISIS propaganda is winning thousand of souls. More and more people think that these bastards should be stopped by all means. This is EXACTLY what the US-Hollywood-propaganda is seeking: an open invitation to invade Syria (or to have a 3rd party do it) without activating the agreements Syria has with Iran. The instability created by ISIS (Al-Quada) in the Middle-East is beneficial for the exchange rate and the survival of the PETRODOLLAR and the US-dollar as a reserve currency.

Japan has it all lined up to enter a Hyperinflationary depression: We have come to a point where it doesn't add up to hold Japanese debt...and we may soon see the Yen entering in a death spiral....when it does, the Bank of Japan will have no alternate but the monetize its debt and light the fuse to Hyperinflation.

    • The Yen sits in a secular downward trend
    • The 10 year Japanese treasuries pay 0.54% and less
    • Interest rates for many other debt instruments have become NEGATIVE.
    • The Central Bank of Japan is printing money in an exponential way.

Important Technicals:

Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Monday September 15, 2014  - Money is actually worse than debt -

Updated sections: Bonds & Treasuries USA and Germany , 

The special ration PF charts for Gold expressed in the major currencies are published in each respective section. Important is that not one PF chart shows a TOP formation; that for Gold expressed in most currencies Gold is bouncing up the Basic Uptrend line (thick blue line); that the correction which started in August 2011 seems to be maturing; that most corrections show either a Bullish Flag or a Bullish Wedge; that the Flag or Wedge probably signals a HALFWAY stop - this indicates that during the next bull run Gold will cover at least the same distance it covered in the first leg.

We have also added a PF chart for the Gold & Silver Majors. Here we have a maturing bullish flag and the size of the flag allows us to calculate the bullish target.

It is unfortunately extremely hard to forecast WHEN price will break out of the formation. As the PF chart has no time axis, such action could take days, weeks, months and even years.

charts - see subscriber's sections

When the music stops, TWO things will be important: 1. WHO has the Gold? and 2. WHERE are they keeping it? In the mean time, it is less important to loose Fiat Money so one can acquire more Physical Gold. Chinese, Russians, Indians, Vietnamese, Arabs, Turks,...all know that Fiat Paper Money is worthless and only Physical Gold is real money. What if - in a process to corner the Gold market - China and Russia both sell Gold or short Gold on the paper market (futures markets CME, LBME,...) to depress the price and force a maximum of weak holders to sell their physical?! Even if they have to cover the losses with Fiat Dollars, they will profit...when the music stops and everybody starts to dump US-Dollars.

If millions of Chinese and Indians think gold is money, who's gonna pretend it is a barbaric relic ? Turkish people don't trust paper money, Indians don't trust paper money, Vietnamese don't trust paper money,...

There are many WHAT IF's which can and will propel the price of Gold higher in the future. more in the subscriber's section

During the 1960' the Gold pool managed to cap the price of Gold until De Gaulle demanded the Americans to deliver....and the market went nuts, banks and central banks lost billions, Authorities called for a Bank holiday....As a consequence for  Americans it became illegal to hold Gold. Only Americans which kept their Gold out of political reach were fase...

Everybody has to spend energy, has to work for his living. This is true for Government as well as for the Billionaires and for the ordinary employee. Nothing - except for Sunshine and Air - comes for free. Note that today, sometimes people even pay for sunshine (vacation) and Air (airports in Venezuela).

Not hard to understand that today's fairy tale of "Free Fiat Money" will have a bad ending...or is it? Few people seem to realize the dramatic situation we are in and that the denial is fed by the Propaganda sold by Politicians through the Mainstream media. The 4th generation (see Galbraith's Age of Uncertainty) doesn't seem to be mentally able to grasp the seriousness of the situation the world is in.

Governments and Central Banks (which are like economic Siamese twins) not only print Fiat Money but on top they make the cost to print more money, issue new debt and serve past debt ridiculously low....In reality, Real Interest rates (nominal interest rate less real inflation rate) or the cost to issue more fiat money has become negative. Propaganda must be extremely solid to keep such a mirage alive and absolute no accident may occur...click here for more

The new World order. This is the REAL EU: Intelligent Psychopaths, liars, crooks, cheaters,....

Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Friday September 12, 2014 - Will the system survive until the end of 2014 ? -

eye of the stormUpdated sections: Gold Objectives , Silver Objectives ,

No doubt that what we live today is the eye of the storm. All seems calm and perfectly in control...while it is in an absolute unstable equilibrium. By the end of the year 2014 we could see $200 per ounce for Silver and $10,000 per ounce for Gold. See Gold objectives and Silver objectives on your Goldonomic site.

The Americans have no Gold left.  The Britons have no Gold left. They know that as soon as the Chinese - who are on the long side - demand delivery of their physical Gold & Silver, it will be GAME OVER.

Silver & Gold will spike because the PAPER markets will default as soon as there is no physical left to deliver.

My guess is that at the same time, the Dollar will break down of its huge triangle (which is almost completed) and with .50 as objective ( almost a 50% devaluation). As long as you are invested in physical Gold & Silver, Gold & Shares, Energy shares,....you are safe as the price of the shares will automatically adjust for the lower Dollar. Personally, I don't see how THEY possibly can kick the can down the road for another two years. If nothing happens before the end of 2014, it certainly will before the end of 2015. At this time it is hard to know what the collateral damage will be for the Euro and the Sterling. Note: Crude Oil will spike to $140 - $160

Authorities are certainly aware of it and this is the MAIN reason behind the War in Ukraine, Syria, IRAQ and the problems with IS. China and Japan have their conflict in the South Sea for probably the same reason. Once it happens, we will see a other nasty collateral incidents. Therefore it is utmost important to do today what can be done today. Don't delay your action....

Nobody loves Gold. Therefore you have to buy it NOW ! Even if there is manipulation, you have to buy it now...because manipulation won't last...

The European Court of Justice decreed on Wednesday (3rd September) that Spain is contravening EU law because it treats residents and non-residents differently with regard to tax on inheritance and donations. This ruling means that non-residents who have inherited assets in Spain or have received them as donations in the past will be able to apply for a refund of the amount they were overcharged in tax.

Important Technicals: see subscriber's section

top sept11a 

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Thursday September 11, 2014  - Following the herd and invest in Real Estate is a sure-fire way to mediocrity -

maputo1Updated sections: US-Dollar , Euro/Dollar , Sterling/$/Euro , 

Mozambique succeeded in achieving independence on June 25, 1975, after the coup d'état known as the Carnation Revolution, thus ending 470 years of Portuguese colonial rule in the East African region. During the war Capital and Entrepreneurs had fled to Portugal, Zimbabwe and South-Africa.

I remember the early 1990's. Fifteen years later Mozambique was a ruin. But the country still presented business opportunities. As a young business man I was exporting South African products during a time of sanctions. A rewarding business. So why not add products from Mozambique ? While during those years the country was not safe, driving to Maputo was an eventless journey. A friend of mine who also made the trip, suffered a Machette attack on the beach and returned home with three bullet holes in his bakkie (truck).

The remains of the old glory under the Portuguese colonialism were all over the place and it was not hard to imagine how the rich avenues and the city was looking like during the years of Glory. Today the city was in ruins and even in the international hotels, the rooms had been ransacked: telephones ripped out of the wall, television sets gone just like everything with some value....

When driving by a factory in the port, I noticed the laborers were playing games on the sidewalk. Later I learned that the city and the factories were only receiving so many hours of electric power a day. Factories could only run when the power was on....so in between – to kill the time - employees played cards and domino.

Restaurants in Maputo had plenty of staff: waiters, maitre's , wine and beers servers,....It took me some time before I realized that only ONE staff member was allowed to serve the patrons at the same time. Some investigation learned that the Staff had only one pair of shoes available..and the same pair of shoes were used by the staff.

There are similar stories for other parts of Africa. Until the independence of Congo, it only took just over two hours by car to drive from any major city to a Gold Mine in the country. Today the same trip takes over 4 days by automobile, truck, quad, pirogue, motor bike, walking...FOUR DAYS. After the belgians left, corruption took over and entrepreneurs and capital left the country. Roads and bridges deteriorated and there was no money to repair these. In no time the modern infrastructure the belgians had built during the years of colonialism was destroyed, fell apart...So did the country.

Important Technicals:

Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Wednesday September 10, 2014 - Only fools and the ideologically impaired believe that today's capital markets are free.

sweden electionsUpdated sections: The Team , Crude oil , Coal , Agriculturals, Copper & Platinum , Inflation Index , 

Swedes are going to the polls on Sunday to elect a new government.And there is a very real risk ( this is what the capital markets are telling us) — that the Social Democrats, will reclaim ultimate power. If the Social Democrats win, it means that next Monday morning, Sweden instantly becomes terra non grata — a country from which you want to pull out any money you have invested in stocks, bonds or the currency.Veterans know that Swedes have to obtain permission from the Tax Authorities to open and to run a financial account abroad.

Note: Financial Markets smell the shit...!#!$

  1. likewise, financial markets are telling us the Scots will say NO to the Queen of England.
  2. the Belgians are going for a Suicidal Swedish style Government...time to AXE your investment in Belgium is NOW! The Belgian Dow Jones (BEDOW) doesn't like what is happening...
  3. the Swedish Krona has fallen in STOP LOSS weeks ago....

Japan is a schoolbook example of the reality that there is a basic difference between the monetary situation/policy of a country and  economics and that the economy cannot be stimulated by printing more money. True however is that taxation kills economic activity...

Japan's economy shrank more sharply in the second quarter than first estimated and the latest indicators suggest only a modest bounce back since then. The world's third-largest economy contracted at an annualized rate of 7.1 percent in the April-June quarter Business investment fell more than twice as much as first estimated. The economy's contraction was expected after Japan increased its sales tax from 5 percent to 8 percent on April 1. Only months ago Prime minister of Japan declared that he would more than double the Monetary supply.

Elementary Mr. Holmes - This is collective Madness ! -

Time upon time REALITY of life proofs that the experiment of MORE fiat Money, LOWER interest rates and MORE taxation kills the economic system and welfare...so tell me WHY time after time the Authorities recur to the same ineffective remedy? Why do people time after time vote those same incompetents into power?

Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Tuesday September 9, 2014 - Scotland 1st example of democratic split up under pressure of expensive energy -

Yes-and-no-campaigners-in-011Updated sections: Recession Proof shares , Oil shares , Portfolio , Natural Gas , Uranium shares , 

It's all about complex societies and expensive energy. The value of major Scottish companies has fallen by billions of pounds after the stock market was spooked by polling giving the yes vote a lead ahead of the referendum. Shocked by the scale of the shift to yes, UK party leaders (intelligent psychopaths) are now urgently trying to agree a joint statement later this week on devolution for Scotland to reassure worried no voters. Other countries will follow in the wake of Scotland, Ukraine, Catalonia,..even the USA.

Banks in Portugal, Spain, Italy, and the UK have begun restricting how much customers can withdraw.Italy has instated capital controls. Banks in the United States have begun restricting their customers' international wire transfers. Banks in Cyprus completely froze people out of their accounts.  Everyone from the International Monetary Fund have been calling for capital controls (which will lock your money inside the failing banking system). Even the People are calling for a General Wealth tax.

Buy that house, buy that car....all is well and recovery sits right around the corner...

More and more countries are preparing Capital Controls and Wealth taxation and this is (off course) acclaimed by The Majority-Herd. Governments and Banks have overspend and are technically bankrupt. In a last effort to kick the can down the road and to only die another day, they have with the help of fiat paper money and derivatives slammed the cost of printing more money and borrowing even more to ZERO. The situation is so bad that it start to become hilarious. Certainly for the independent observer which sees this absurdity happen. It really only is a question of time before the Herd sees the Emperor has no clothes and the Mirage goes away...and the system collapses.

lala landThis is LALA-land. Last Friday, as if to add to the hilarity, Irish short term Treasury yields went also negative (just like happened in bankrupt France). Only three years ago the two-year Irish bonds yielded +23%. Today they yield – 0.004% .

When governments go broke, they pillage and plunder from the people. They debase the currency. They impose capital controls. They raise taxes. They confiscate assets from the citizens. They create a myriad of new rules and regulations. They roll out aggressive police forces.

The Weimar Republic's episode with hyperinflation in the 1920s is a great example. Despite all the warning signs, most people did nothing... and they got wiped out. A handful of people, though, saw the writing on the wall. They took steps to safeguard what they had. And they allocated their investment capital to bet that the currency would collapse. They were right. And vast fortunes were created in a matter of months.

People, politicians, authorities and central bankers fail to understand that Inflation and Deflation is a monetary phenomenon and Recession, Depression and a Boom an Economic one.  They are convinced that by printing money and slamming interest rates they actually can revive the economy. NO SO !

Following is a monetary strategy for retarded people:

  1. Force down bond yields and interest rates, hoping that this supports jobs and growth by restoring proper credit flow throughout the monetary system.
  2. If this doesn't work fast enough, repeat with more aggressive use of bond purchases, hoping also to promote export growth by weakening the currency.
  3. Pressure governments, both privately and publicly, to implement much-needed measures to promote growth and avert deflation.
  4. Cook statistics (inflation, deflation, GNP, debt,..) figures to make it all look rosy.
  5. Make sure the Mainstream Media sell a Deflation propaganda so you can continue to print money.
  6. In all this, hope that the costs and risks of experimental monetary policies don't overwhelm their benefits.

Important technicals: see subscriber's section

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Monday September 8, 2014 - the price of real estate always comes down during inflationary recessions! -

ukraine houseUpdated sections: Stock Market Indexes in Gold , Long Term 
Stock Market Indexes
, Gold & Silver Majors ,
Gold-fundamentals , Gold & silver miners versus common
, Juniors ,

To reverse the Real Estate trend, people will either have to bomb/destroy Real Estate in an Ukrainian/Syrain style or...have more sex.   It is beyond any imagination that today we still find idiots who claim the Bear trend for Real Estate is over and the general price level will soon go up again!  There are several factors which keep real estate locked into a bear trend. 1989 when I forecasted the crash of the Japanese Real Estate, I was ridiculed. The general public, but also a lot of analysts simply ruled it out. Japan was an extremely densely populated isle and prices could only continue to go up...[the non-Japanese investor who in 1989 spend $ 100,000 on Japanese real estate, was left with a residual value of $ 18,000 in 1995].

If your financial advisor pretends real estate prices will go up again, please stop your subscription NOW !

Real Estate is a High Order Capital Good and its value always falls during inflationary recessions. Even more during hyperinflationary depressions and even more during times of War. During depressions, the rights and the income of landlords are diminished - mostly under social pressure - while the expenditures continue to go up under pressure of the inflation. During the Weimar crisis, one month of rent barely allowed the landlord t buy a loaf of bread and today in Galicia (Spain), Sicily (Italy) and Detroit (USA) one can buy a house for ONE DOLLAR/EURO.

falling houseThe population pyramid is a important underlying factor for Real Estate prices. As a matter of fact, today it tells us that we have only seen the 1st wave of falling house prices and that it will be followed by a 2nd, even more dramatic wave to last until at least 2050. I made a mistake by forecasting a BOTTOM for 2030-2035. We may not even see the expected correction...

The 2nd Real Estate crash will be even WORSE than the 1st one...

Following graphs are for Japan but also apply for other countries: USA, West-Europe, Belgium, The Netherlands, France, UK....click here to select your country and see for yourself what to expect for the local Real Estate market. A narrowing base = Lower Prices, a widening base = Higher prices...more in the subscriber's sections

Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Friday September 5, 2014 - Today's April fools joke - Key benchmark interest rate in the EU lowered to 0.05%

Updated sections: £-Gold & £/€/$ , Zar-Gold & Zar/$/€ , Krona-Gold & Krona/$/€ , Yuan-Gold, Rupee-Gold , €/$ , World Stock Market Indexes ,

An economic revival is impossible as long as nothing is done about Government, regulation and taxation. An economic revival is impossible as long as all of the misallocated funds have not been cleansed out of the system.

Fiat money has no value, it is a worthless commodity...and as a worthless commodity it deserves no interest

Draghi & Co. still fail to understand that the economy will continue to slide from a recession into a depression even when he continues to lower interest rates and even if interest rates become negative. As a matter of fact Real Interest rates have been negative for some time now and it is clearly visible the policy of lowering interest rates doesn't work...The Japanese experiment (low interest rates) which has been run since 1990 CLEARLY proofs that such a monetary policy DOESN'T work.

What do you call somebody persisting in an action which brings not the intending effect? an IDIOT

Important Technicals:

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Thursday September 4, 2014 - A safe heaven is no longer what it was in the past !

police opens safeUpdated sections: Silver, Silver fundamentals, buy Silver , US-Dollar , €-Gold & €/$ , Aussie-Gold & Aussie/$/€ , Swiss-Gold & FS/$/€ , Can-Gold & Can$/$/€ , ¥-Gold & ¥/$/€ ,

The reasoning process as to how and where to keep your savings in which instruments has become a tricky one. Contrary to the past, today one must take several factors into consideration.

  • Fiscal status of the funds/savings/gold & silver. Some countries levy Import duties and Sales tax on Gold (7% - India, Switzerland), and Silver (21% - Belgium) . Other countries may put Capital controls into place and make it impossible to transfer funds abroad and/or transport Gold/Silver abroad.
  • Political status of the country you decide to keep your savings in. Keeping Gold in a country where there is a raging war or where war is close is a bad idea.
  • Geographical location of the country. A country having a status of neutrality today, can be invaded tomorrow. Countries like Iraq, Lebanon, Pakistan, India, China, Japan, Singapore are politically less safe.Some countries are surrounded by fiscal aggressive countries and as a result the transportation of physical may come at a certain risk.
  • Are there Vaults available or does one has to store his physical gold in a Safe Deposit Box with a Bank..and risk confiscation.
  • How easy is it to buy/sell equities and physical gold and silver? How easy is it to transfer the funds once equities or Gold/Silver have been sold?
  • Which continent are you dealing with? Africa, Europe, the Middle-East, North-America, Central America, South-America, the far East,....
  • Which language do you need to speak to make yourself understandable and to understand the others?
  • What is the the TIME difference between home and the country where you keep your savings?
  • How hard/easy/safe is it to travel to and from the country you have selected to keep your savings?
  • How hard/easy is it to get a Bank Card and how flexible en how safe is the bank you are dealing with. Are you dealing with a Commercial Bank or an Investment Bank?
  • Does your financial partner allow to buy equities?
  • What is the deposit ratio of the selected financial institution?
  • What if things get so bad that you are forced to stay in the country where you have stored your savings?
  • How good can the country where you are keeping your savings survive under sanctions, in a time of war?
  • In case of a global financial catastrophe, how will the country where your savings are being kept handle you and your savings?  In Cyprus, funds were bailed-in irrespective of the nationality of the owner and the country of residency. In other words, whether you are a resident or not, you may loose some or all of your savings if you are storing these in a financial risky country. [Cyprus was/is a fiscal paradise...but it all came with a bad surprise]

Important Technicals:

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Wednesday September 3, 2014 - Markets could soon be coming out of the summer doldrums with a bang -

margin debt2014Updated sections: $-Gold , Real Estate in Belgium, France, Netherlands , Gold fundamentals ,

The anatomy of the 1929 crash is worth reviewing. It started with the Dow Jones Industrial average hitting its peak on September 3. The stock market then started to fall two days later, there was no panic and no crash throughout the whole of September and early October just stock prices failing to make a move higher.

It was on October 24, or Black Thursday, that the market finally fell apart dropping sharply before recovering strongly into the end of the day. The seeds of doubt had been sown and over the weekend investors decided they wanted to get out. When the markets opened on October 28, or Black Monday, there was more sustained selling and no recovery. The collapse culminated in the worst day in stock market history recorded on Black Tuesday October 29, when fear gripped the markets and the lack of any buyers resulted in share prices dropping through the floor...more

Important is to add that the stock markets recovered 2/3 of their losses in the 12 months following the Great Crash.

Europe and French, Belgium authorities preparing for more taxation and Wealth Taxation all over the EU. At the same time as a hyper-inflationary policy and monetization of debt is only possible with a deflation propaganda, all the PROPAGANDA tools are taken out of Pandora's box and more and more 'so called' Professors are hired in an effort to convince the Public they must prepare for DEFLATION rather than for Price Inflation. No doubt this action will mislead many investors.

In the EU interest rates are further pushed into the negative. Nobody seems to understand that by doing this, the Authorities are ensuring that NO RECOVERY will be possible once the bottom of the depression has been hit. Capital which has not left the Western world, will either be taxed and/or legally taken away or be inflated away and/or consumed. Such a policy opens the door for a North-African like evolution of Western Europe: a beautiful country with dramatic architecture....but poor as hell.

People are lending capital to Governments and instead of receiving INTEREST they are actually Paying for allowing Authorities to misuse public funds...
Inflation and Deflation are monetary phenomenons contrary to an economic boom, recession and depression which are economic phenomenons.

Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

Tuesday September 2, 2014 - Don’t try to time it. Nobody has a crystal ball. -

crystal-ballUpdated sections:

Inflation is too much money and credit. The symptoms are variable. Sometimes the word for inflation is a bull market...it's all about communicating financial vessels! Those who still don't own xxxxxx shares must certainly watch it. Same advice for those who believe in the aberration of BITCOIN.

Inflation is visible in the general level of Shares

Don’t try to time it. Nobody has a crystal ball. It’s irrelevant whether the trend unfolds over weeks, months, or years. It’s pretty clear where this is all headed.

Seen on internet:

This is how an American business executive described living through Mexico’s devaluation of the peso exactly 38 years ago on September 1, 1976: "Everyone in the country was in shock. People’s net worth had devalued more than 53% overnight. The value in savings accounts dropped in half and neither merchants nor consumers knew how to react because they had never been through something like it before..."

Looking back, it was so obvious. Mexico had a mounting debt, destructive policies, and a woefully unsustainable fixed exchange rate with the US dollar. All the writing was on the wall. But most people ignored the warning signs and kept their money in pesos. Mexican President Luis Echevarria even went out on the radio to reassure people that the currency was safe...only days before the devaluation...

Gold is a universal currency. People recognize it at sight. The derivation of the term 'sound money' is – [Clang! He drops a gold American Eagle coin on the table]. Isn't that lovely?"...more in the subscriber's section.

While analysts and the talking heads continue to tout American oil independence, the everyday people are missing out on a key fact. One that tells us much more about the direction of oil prices, instead of filling your dreams with false hopes …Oil discoveries have fallen off a cliff. In 2013, the world had one of its lowest years on record for proven oil discoveries. We discovered only half as much oil as we consumed — and this downward trend is on pace to continue this year into next. Extremely important and something many forget about is that the marginal exploitation cost of CRUDE OIL is minimum $ 75 per barrel and RISING. By investing in Oil and Oil companies, one invests in BLACK GOLD...see the subscriber's section for our selection of Oil, Gas & energy shares.

labor day

Copyright 2014, All Rights Reserved - The contents of this report may NOT be copied, reproduced, or distributed without the explicit written consent of Goldonomic.

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