ECB with new boss and lower rate

QE is on the way.

The European Central Bank lowered its benchmark interest rate Thursday, as the new president, Mario Draghi, acted quickly to address a looming recession and acute tension caused by the sovereign debt crisis.



Stive Jobs RIP

"What will be will be, the future is our to forge..."
                              "the captain"

I never liked Jobs as technical person, but he was truly great businessman,
except last several mounts when he behave very irresponsibly.


The fall of Byzantine empire

Friend referred me to two movies about the fall of Byzantine empire.
One of the movies truly sucks :)

However, the other was very good. Unfortunately, the movie is in... Russian and have no subtitles.

If you know Russian, watch it. You will find lots of parallels between late Byzantine empire, Venice, Turks and today's big countries such USA, Germany, China and so on.

Here is the link:

Гибель империи. Византийский урок.

And here is the embed:


Dow : Gold ratio

Dow / Gold ratio hopefully went to 6.11
This is still lower than March (6.90), but is higher than 2 days ago (5.89).


Gold 4h chart

Gold confirmed the silver move. Chart is bit different, but probably gold is due to correction as well.

Silver 8h

8h silver chart just after market open. Move is NOT confirmed in gold (yet) and a correction is due.


Some calculations inspired by previous post.

If dow is unchanged, gold need to go to 2,176 USD, in order the ratio to go under 5.
If gold is unchanged, dow need to go to 9,250, in order the ratio to go under 5.
If gold go to 1900 and dow go to 10,000 the ratio will be 5.26, e.g. still is over 5.

Dow : Gold ratio

Gold is $ 1,848.00

Dow is 10,881.90

Dow/Gold ratio - 5.89 (March was 6.90)

This is really very low and if it fell some more, will go under 5,
then we will need to reconsider the whole investing thing.

Some links:

Behind Detroit's Notorious Ruins

Gold and Silver charts

Gold 1 week

Gold 1 day

Silver 1 day


Reprinted: Nixon closes the gold window

Today the fiat money experiment is officially 40 years old.

We posted this almost one year ago:

Historical moment: Nixon closes the gold window,
and with other words declares bankcrupsy of USA. On top he impose 10% tax on foreign imported goods.


Gold (almost) hit $1,800

These days I really not understand what is going on.

Yesterday I told to a friend that when I see gold price, I need 10 sec to realize if gold go up or down, sometimes I need to check the chart.

Well gold almost hit 1,800 USD.
Dow is 10,719.94.

This makes Dow/Gold ratio = 5.95.

This is new low, since March was 6.90.

However, I believe the calculation is bit wrong, because NYSE stock market is closed now,
and gold hit 1,800 after market hours.


Redis hosting

I just finish my current project:

But what is Redis?

Redis is awesome NoSQL database.

From one side, it is simple key-value store, but it support not only text strings, but different data types - lists, sets, sorted sets, hashes and many more.

Because is in memory Redis operations are blazing fast and atomic.

Redis can do 110,000 SET operations per second or 81,000 GET operations per second.

Redis is persistent and can be used as data store engine - data is not lost if server is stopped or crashed

Using Redis you can speed up your web application or website by thousand times.

Redis supports many programming languages.

If you are programming take a look at some programming user cases.


Silver 4h

Rise in silver is overdue. Probably we will see correction very soon.

Gold 1 day chart

Interesting development, we may get spike similar to what we had in April, then correction to $1,530-50-70 area.


Silver 4h

Long time did not posted anything, but this is because I have urgent web project I am working on.
Probably we saw bottom in silver, since the downtrend was broken.
Now silver must go down a bit, probably to blue or brown line.


Some videos

Marc Faber: Fed to Resume QE When U.S. Stocks Prices Fall

An interview with GATA Chairman Bill Murphy


Честит 24 май

Напред, науката е слънце,
кото във душите грей,
напред народността не пада,
там г'дето знаньето живей.


Aaron Russo Interview.

I watched this interview 4 years ago.
Aaron Russo pass away, but the interview is as actual now, as it was back then.

Silver charts

Silver 1 week
Bottom blue line is definitely a support

Silver 4h
mixed picture.


Charts after the fall

Yesterdays fall in prices or Gold and Silver was provoked from yet another new margin requirements in Comex. This was clearly a manipulation, but the fact is that prices fell, and charts are what they are.

Gold 4h
The gold actually recover first and hit new high at $1,57X. Because my chart is 24h trading, we do see another higher high from 3-4 days ago.
Then gold fell, but not to $1,520 where the support is.
The triangle is still on the chart (brown line).

Silver 1 day
Silver fell to ~42, then recover to ~46, then yesterday fell again to $40.55. Currently rising.
The triangle is still on the chart (brown line).


When money dies (lots of charts)

The US dollar is at tipping point. Here are why:

JPY chart

Yenn chart is flat. But the is because of enourmous disaster Japan suffers.
EUR/USD daily
The bearish wedge was broken from the wrong side and now, the price will go to 1.51

USD/CHF daily
Here we have no wedge, but support was broken and price going down.

GBP chart
GBP chart is same as CHF.

USD/CAD chart
Here price is at the support level

USD Index - 6 mo period
Here situation is as in EUR/USD. , broken from the "wrong" side. WedgeThis is "normal" because UDX is overweight with EURo.

Gold 4h
Here upper channel is broken as in CHF chart (but chart is 4h instead of 1 day!!!).
Brown line could be a new channel top. Previous channel top could be a support.

Silver 4h
Here previous channel was broken, and we have a triangle.
Triabgle may be broken any moment or price may fall to next support levels - different blue lines.

Open Letter From Ted Butler to Custodian of SLV Silver ETF

Ted Butler raise same question as James Turk - e.g. question of shorting GLD and SLV (and any ETF in general).
(Via Jesse)

April 28, 2011

Mr. Laurence D. Fink
Chairman and CEO
55 East 52nd Street
New York, NY 10055

Dear Mr. Fink,

I am writing to alert you to a possible circumstance of fraud and manipulation in your popular ETF, SLV, due to the excessive short-selling of its shares. Current reports indicate the most recent level of total short sales now exceed 36 million shares. This is an increase of more than 14 million shares from the previous reported amount. ShortSqueeze.com

Each share of SLV requires that one ounce of silver be held at the Trust's custodian (minus accumulated ed management fees), according to the prospectus. Since short sellers of SLV shares do not deposit metal with the Trust's custodian, this means that the buyers of the more than 36 million shorted shares of SLV do not have metal backing, as required by the prospectus. It is my belief that many of the shares shorted have been shorted precisely because no physical silver was available to deposit. If I am correct, this may constitute fraud and manipulation, possibly on the part of Authorized Participants (APAs) who make deposits and redemptions of metal in the Trust.

I am a silver analyst and a fan of SLV. I had raised this issue with the previous owner and sponsor of the trust, Barclays Global Investors (BGI). I never did receive a satisfactory answer from BGI about the shorted shares issue, although they did agree to list and publish the bar serial number and weights held in the Trust after I publicly urged them to do so. I am hopeful that BlackRock might be more responsive to this issue.

Publicly-traded ETFs that have specific metal backing are highly unique securities. Perhaps a small short position may be overlooked on a temporary basis until the metal is deposited in the Trust due to logistical considerations. But a short position that represents more than 10% of the outstanding shares issued means that many buyers of the shares have no metal backing. This is clearly not in keeping with the spirit of the prospectus that each share issued be backed by one ounce of silver on deposit with the custodian.

I trust you will look into and rectify this circumstance.


Ted Butler

Butler Research, LLC

Experimental electric car

Looks like to build electric car is not that difficult, nor that expensive. This car along with about 3 more was built in University of Transport in Sofia, Bulgaria - http://vtu.bg/ .

For this particular car, they used some Renault as a base, kept existing manual transmission and removed the air conditioner. The battery used in this car are "normal" lead batteries, one under the hood, and four more in the back.

The car is equipped with solar panels on the roof which are used mainly to charge the 12V car battery, but theoretically may help charging the main batteries.

Due to high price the car does not have super capacitor, nor "bust" function.

The engine without the batteries costs between 1000 and 2000 EUR.

This particular car can "travel" 100 km.

Another interesting thing is that even the transmission is manual, you usually do not change the shifts, but almost always use 3th shift. 4th shift is used on highway, and lower shifts only if road is really bad.

In additional of this car, they built some with automatic transmission and lithium-ion batteries.

Side view:
Experimental electric car

Side view:
Experimental electric car

Back side where batteries may be seen.
Experimental electric car - back side

Under the hood - small engine, big battery
Experimental electric car - view under the hood


Gold went crazy...

Gold just hit $1,569 mark.
Meanwhile EUR/USD stays flat.
There is relatively big moves in GBP and CHF - about 100 pips.
AUD and CAD moves are about 50 pips.

Gold 2 days

Gold 4h

Silver 4h

Silver dod not confirmed the move in gold, probably it will catch up very soon.
Platinum however confirmed the move.

1 day period mixed chart