“This Decade will be the Decade of Silver.”

Eric Sprott

This decade increasingly offers the opportunity to Profit and Protect Wealth provided one is aware of Key Realities that are Veiled from common view.

One such Veiled (except to a few, including most readers here) Reality is that the Price of Silver (and Gold) is subject to ongoing Cartel (Note 3) Price Suppression operations. Given that the demand for Physical Silver exceeds Mine Production, these Price Suppression actions create bargain Silver prices for those willing to buy Physical and Hold through volatility.

“The manipulation is giving silver investors a double-barrelled bonanza. One, a cheap price to buy at than would otherwise be the case and, two, a much higher price to sell at once the manipulation is ended.”

Ted Butler, Silver Analyst

Thus, knowledge of The Veiled Reality – Silver Price Manipulation causing unnaturally low Silver prices temporarily – provides considerable Profit and Wealth Protection potential. Another way of regarding the Veiled Reality Approach is through the Prism of the George Soros’ comment.

“Find a Trend whose Premise is False and Bet Against It”

A (False) premise is the Veil which covers The Reality – the “True” Premise.

Another Reality which is veiled is the Universe of Real Statistics (vis-à-vis Official Statistics). Official Statistics are often Bogus, particularly in the US, but elsewhere also. Consider, for example, the Non-Farm Payroll Figure for March, 2012 released Friday, April 6.

The Official BLS Release reported a rise of 120,000 (itself a disappointing 80,000 below prior Establishment Estimates). In fact the rise was only a mere 30,000. The other 90,000 can be accounted for by a totally made-up number, the (Bureau of Labor Statistics) CESBD Birth-Death adjustment, by which it is assumed that new business startups created 90,000 jobs. This Birth-Death Fiction is the Veil that covers the Reality of a mere 30,000 rise in U.S. Non-Farm Payroll.

The Reality is that 150,000 New Jobs need to be created in the U.S. every month just to keep up with U.S. population growth (90% of which is Immigration generated). Similarly, Real U.S. Inflation is 10.45% per shadowstats.com (see Note 1). Thus our High Yield Portfolio aims for a Total Return (Gain + Yield) in excess of Real Inflation (see Note 2).

Thus these Veils hide The Realities. As the Real Inflation and other figures show, the U.S. is already on the Hyperinflationary Threshold, is not recovering economically, and has declining job creation.

Finally, an increasingly-less-veiled, but extremely important Reality, is that of Debt Saturation, and not just that of the PIIGS, but also of France, Great Britain, and the USA. Sovereign Debts of these Nations simply cannot be repaid under any reasonably likely economic scenario. Indeed, Spanish and Italian 10yr. Note Yields have been approaching the Ominous 6% again, a sign “The Market” recognizes the fact that these Sovereign Debts are not payable.

Therefore they likely will be inflated away via ever greater waves of Central Bank Money Printing (see Deepcaster’s Article “The Hooker-Opportunity” from 3/23/2012 posted in ‘Articles by Deepcaster’ for details).

And this will eventually bring Hyperinflation in Essential Tangible Assets and the P.M.’s. (Already we have seen this in Food and Energy.)

Thus the Central Banks Cartel will attempt to retain power through ever increasing Money Printing and loan restructuring.

Consider:

“We've all heard the old adage about adding insult to injury but the IMF has turned it into an art form. The new IMF Director, Christine Lagarde, came to Washington this week begging for yet more billions so the fund can continue propping up insolvent European banks and wrapping developing countries around the globe in debt chains. …Lagarde didn't mention this in her speech, but she did assure the crowd that at the IMF “your money is used prudently.”

“The only thing that is remarkable about this is that the public is expected to believe it. No one who has any understanding of the IMF's past or how it operates would expect that these funds to be used in any other way than they always have been: as leverage over the governments that sign their peoples on to debt servitude.

“The fallout from these operations is invariably the same. The people figure out that they've been footed with the bill for someone else's party and the riots begin.

“These types of protests aren't merely predictable, they're part of the plan. The IMF and World Bank documents that leaked out in 2001 detailed the four step plan for looting a country, including the “IMF riot” stage. People take to the streets to protest the austerity measures that are tied to the IMF loans, causing foreign capital to flee, governments to go bankrupt, and foreign speculators to pick up the pieces at fire sale prices. The riots happened in Indonesia in 1998. And Bolivia in 2000. And Ecuador and Argentina in 2001. What's happening in Europe is not an exact analogue, and it's aimed at centralizing power in the EU in Brussels and the ECB in Frankfurt, but that the IMF has seen the crisis as an excuse to get its foot in Europe's door as a lender is particularly telling.

“This is how the game is played…”

“Triggering Economic Disaster: the Insidious Role of the International Monetary Fund”

James Corbett, International Forecaster, 4/8/2012

We have not reviewed the “documents leaked out in 2001,” so we do not know whether Corbett’s characterization is entirely correct. But what is indisputable is the Power of the International Mega-Bankers, an important Veiled (but increasingly less so) Reality.

What is also clear is that The Outcome will not be pretty.

We have been recommending (see Note 2) High Yield Dividend Paying Stocks and Gold for many months now.

There is wisdom in the Boy Scout Motto: “Be Prepared.”

Best regards,

Deepcaster,

April 13, 2012

Note 1: *Shadowstats.com calculates Key Statistics the way they were calculated in the 1980s and 1990s before Official Data Manipulation began in earnest. Consider

Bogus Official Numbers vs. Real Numbers (per Shadowstats.com)

Annual U.S. Consumer Price Inflation reported January 19, 2012
2.96% / 10.57% (annualized December, 2011 Rate)

U.S. Unemployment reported February 3, 2012
8.3% / 22.5%

U.S. GDP Annual Growth/Decline reported January 27, 2012
1.56% / -2.70%

U.S. M3 reported February 13, 2012 (Month of December, Y.O.Y.)
No Official Report / 3.87%

And Official Source Disinformation continues, consider Shadowstats comments on the January 6, 2012 release of U.S. Employment data:

“The reported seasonally-adjusted 200,000 jobs surge in December 2011 payrolls included a false, seasonally-adjusted gain of roughly 42,000 in the “Couriers and Messengers” category. That gain was an artifact of the seasonal-adjustment process and will remove itself in the January 2012 numbers.

“The problem is that this 42,000 gain is part of a seasonal pattern that fully reverses itself each January…”

            “December Payroll Seasonal-Adjustment Problem”

            www.shadowstats.com, John Williams, 1/6/12

Note 2: Deepcaster addresses the questions of Profit and Protection in light of Fiat Currency Purchasing Power Destruction and provides Guidelines in his article – “Essentials for Wealth Acquisition Acceleration” found in ‘Articles by Deepcaster’ Cache.

Using such Guidelines facilitated Deepcaster’s making buy and sell recommendations resulting in remarkable profits recently if acquired and liquidated when we recommended, approximately*:

45% Profit on Platinum ETF on February 8, 2012 after just 42 days (i.e., about 390% annualized!)

40% Profit on March 2012 $55 Dollar GDX Calls on January 27, 2012 after just 23 days (i.e., about 635% annualized!)

34% Profit on Gold Royalty Streaming Company on December 5, 2011 after just 166 days (i.e., about 74% annualized!)

42% Profit on Volatility Index Futures ETN on October 3, 2011 after just 292 days (i.e. about 52% annualized!)

36% Profit on Double Short Euro ETF on September 7, 2011 after just 43 days (i.e. about 300% annualized!)

35% Profit on Double Long Gold ETN on August 23, 2011 after just 41 days (i.e. about 280% annualized!)

26% Profit on Double Long Gold ETN on August 17, 2011 after just 35 days (i.e. about 260% annualized!)

25% Profit on Gold Stock on August 8, 2011 after just 201 days (i.e. about 45% annualized!)

150% Profit on Gold Stock Calls on July 13, 2011 after just 56 days (i.e. about 975% annualized!)

*Past Profitable Performance is no assurance of future Profitable Performance.

Note3: “A Great Opportunity and A Dangerous Trap; Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar, U.S. T-Notes, T- Bonds, & Interest Rates” – February Letter

“The Fed doesn’t have a clue about markets or economics. They are dangerous people.
Printing money is not good for the world and will lead to more problems for the world….

“What the Federal Reserve is doing now is ruining an entire class of investors.”

Jim Rogers, Bloomberg Interview, 6/29/11

We are not so Negative about the Near-Term Prospects for Nominal Asset Price Growth in Certain Sectors as we were six months or a year ago.

That is mainly because the E.U., Mega-Banks, and the Fed, have already de facto launched a Massive Quantitative Easing 3, with more likely to come.

This QE will serve as a Major Force impelling (but not necessarily successfully) Nominal Asset Prices UP in certain Sectors, for example, for Equities.

But before one becomes too enthusiastic about the Prospects one should consider the implications of our Forecast for Nominal Assets Prices Strength in certain Sectors.

The practice of issuing Bogus (U.S. and other Key official) Inflation figures obscures the Fact that Monetary Inflation (generated mainly by reckless Q.E.) is very rapidly depreciating the purchasing Power of most Fiat Currencies – by about 11% per year in the U.S. e.g. (per shadowstats.com).

Our High Yield Portfolio is aimed at achieving Total Return in excess of Real Inflation. Stocks in that Portfolio with Recent Yields of 18.5%, 8.6%, 10.6%, 26%, 6.7%, 8%, 10.6%, 10% and 15.6% when they were added to the Portfolio.

Also important to note is that, while massive Q.E. is a Major Inflationary Force tending to pump up Prices in certain sectors, there are Powerful Deflationary forces operating as well – the depreciating Housing Markets in the U.S. and China come to mind. Real Estate in some areas in China is down over 25%, but Food prices are up 9% year over year.

The key to identifying The Great Opportunities (and Great Potential Losses) is knowing which Sectors will likely have Inflating Asset Prices and which will have Deflating ones.

Investors failing to Evaluate Inflation/Deflation Prospects on a Sector by Sector Basis will have missed Great Opportunities and fallen into a Dangerous Trap.

Deepcaster’s Letter --“A Great Opportunity and A Dangerous Trap; Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar, U.S. T-Notes, T- Bonds, & Interest Rates; February Letter” -- posted in the ‘Latest Letter & Archives’ Cache at www.deepcaster.com, identifies which Sectors will likely be helped (albeit temporarily) by this Massive QE3 and which will likely be hurt, and provides Forecasts for all. And in his March Letter, “The Pause Before The Great Bull; 3 Buy Recos! Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar/Euro, U.S. T-Notes, T- Bonds, & Interest Rates, March Letter”, Deepcaster makes 3 Buy Recommendations designed for Protection and Profit.