Financial and Geopolitical Intelligence
“The money struggle is the struggle against totalitarianism”
“It may be a bit hypocritical for an American to
wonder why Europeans are giving up their democracy, their countries, their
money, and their very lives to an unelected, overweening, bank-controlled bureaucracy.
After all, that already has happened in the United
States. But at least there are powerful
stirrings against the new European totalitarianism, perhaps best articulated
today by Nigel Farage, a member of the European
Parliament from southeast England
and leader of the United Kingdom Independence Party.
Two supremely eloquent interviews Farage
gave this week could use the widest audience, as he makes plain that the
money issue is what it always has been, a core question of democracy. One
interview is 23 minutes long with Eric King of King World News here:
Or try this abbreviated link: http://bit.ly/hdywOd”
“Nigel Farage: The money
struggle is the struggle against totalitarianism”
Chris Powell, Gata.org, 12/1/10
“Today's POMO has closed, with Brian Sack monetizing $6.8
billion of bond. This is a 3.5x Submitted to Accepted ratio as PDs realize
various blogs are on their POMO funding needs and thus moderate their
Submission amount. Yet what is simply surreal is that the second most
monetized bond was PJ3, due 11/30/2015 . This is the same issue that was
just auctioned off by the Treasury last week! There is no longer even a
pretense of avoiding direct monetization. It is time for Bernanke to go out
and just buy bonds at auction. A one week turnaround is nothing less than
criminal fraud which if anything is unnecessary and pads the PDs pockets. The
result was so stunning it was not even included in last week's frontrunning guide as nobody
had a clue that the Fed could be so brazen in its flaunting of direct
monetization. For just holding the bond a whopping 168 hours, PDs made a few
million dollars. This is criminal. But who cares. Eric Holder has still to
prove that he is anything besides an organ donor.” (Ed. Note –
PD=Primary Dealer) (Ed Note #2 – Which of these Primary Dealers are
also Shareholders of the private for-profit Fed?)
“6.8 Billion POMO Closes: Brian Sack Monetizes $1.1
Billion Of Bonds Issued Last Week”
“Stripped to its essentials, the E85 billion package
imposed on Ireland
by the Eurogroup and the European Central Bank is a
bailout for improvident British, German, Dutch, and Belgian bankers and
The Irish taxpayers carry the full burden, and deplete what
remains of their reserve pension fund to cover a quarter of the cost.
This arrangement…was announced in Brussels
before the elected Taoiseach of Ireland had been able to tell his own people
what their fate would be.
The Taoiseach said afterwards that Brussels
had squelched any idea of haircuts for senior bondholders…
It is harder to justify why the Irish should pay the entire
price for upholding the European banking system, and why they should accept
I might add that if it is really true that a haircut on the
senior debt of Anglo Irish, et al., would bring down the entire financial
edifice of Europe, then how did any of
these European banks pass their stress tests this summer, and how did the EU
authorities ever let the matter reach this point? Brussels
cannot have it both ways…
Patrick Honohan… wrote the
definitive paper on the causes of this disaster from his perch at Trinity
College Dublin in early 2009. Entitled "What Went Wrong In Ireland?," it recounts how the genuine tiger economy lost
its way after the launch of the euro, and because of the euro.
"Real interest rates from 1998 to 2007 averaged -1
percent [compared with plus 7 percent in the early 1990s]," he wrote.
A (positive) interest shock of this magnitude in a vibrant,
fast-growing economy was bound to stoke a massive credit and property bubble…
Given this, why should the Irish people accept the current
… Should the Dail vote against the austerity budget on December 7,
Pearl Harbour Day? And should the next
government… tell the EU to go to hell, do an Iceland,
wash its hands of the banks, and carry out a unilateral default on senior
debt by refusing to extend the guarantee?
The risks are huge, but then the provocations are also
huge… Did the EU not disregard the Irish "no" to Lisbon,
just as it disregarded the first Irish "no" to Nice? Did it not
trample all over Irish democracy?”
“Ambrose Evans-Pritchard: Ireland's
Ambrose Evans-Pritchard, The Telegraph, London,
Essential to Profit-Making as we move into 2011 is
taking account of key Mega-Bankers’ and Globalist (as opposed to
Internationalist) Politicians’ Guiding Slogans?
“Extend and Pretend”
“Kick the Can Down the Road”
“Spin and Deceive”
“Lure and Entrap”
In spite of their Public Pronouncements,
these are still the Operative Maxims of these Key Mega-Bankers and
Globalist (as opposed to Internationalist) Politicians.
Recall, for example, how earlier this
year the Greek Debt problem (de facto a Solvency problem) was
supposedly fixed. Well it had to be re-fixed recently.
And now Ireland,
whose leaders claimed it didn’t need a Bailout, but then had to have
one. And Portugal Soon
The Essential Point is that piling More
Debt on Top of Debt is Not a Solution, but rather exacerbates the
Problem (and continues to enrich the Mega-Banks)…when we face it again
just a little farther down the Road.
Nonetheless, this observation provides
Great Profit Opportunities. For example:
Just under two months ago, the Euro
strengthened to nearly U.S. $1.40. But such strength was utterly unjustified
because the earlier Greek Bailout had not fixed the Greek debt problem; nor has
the recent Irish Bailout fixed the Irish Debt problem; nor, we suspect, will
the impending Portugal
and Spain Bailouts fix their Solvency problems either.
piling on more Debt to “Solve” the problem of Too Much Debt is no
Solution. The Markets eventually “recognize” this,
Therefore, just under two months ago,
reflecting on these Non-Solutions and Euro Technicals,
caused us to conclude that the Euro was unjustifiably strong at U.S.
$1.40ish. Thus, we recommended that DHPS Speculators buy Calls on a leveraged
short Euro ETF. Sure enough, since then the Euro has sunk and earlier this
week, we recommended taking about a 90% profit in just 56 days or about 585%
annualized, for those who bought when we recommended it.
The Key Profit-Lesson is that it is
essential to get past the Spin, Deception, Delusions and Lies and to
ascertain the Underlying Reality, upon which sound Investment or Trading
Decisions can then be made.
Another Profit-Lesson from the Ongoing
Crises is that Key Official Statistics are Bogus; thus relying on them can
lead to catastrophic Investment and Trading errors.
This Wednesday, December 1 Equities Rally
is a case in point. It was fueled in part on the most dodgy
interpretation of questionably optimistic Economic Data.
But the Dow soared over 250 Points,
doubtless with Aid of some Fed POMOS.
Let’s consider at the Real Numbers;
which will allow us to estimate where we think the Dow and S&P will be in
calculates key statistics the way they were calculated in the 1980s and 1990s
before Official Data Manipulation began in earnest.
Consider the following Bogus Official
versus Real Numbers
Bogus Official Numbers vs. Real
Numbers (per Shadowstats.com)
Annual U.S. Consumer Price Inflation reported November 17, 2010
(annualized October, 2010 Rate)
U.S. Unemployment reported November 5, 2010
Annual Growth/Decline reported
November 23, 2010
U.S. M3 reported November 16, 2010 (Month of October, Y.O.Y.)
No Official Report - 3.29%
Look at the GDP and Unemployment Numbers
– there is No Real Recovery. But there is already,
serious Consumer Price Inflation, doubtless in part propelled by ongoing Q.E.
Another Profit-Lesson is that while The
Cartel still has considerable clout to Manipulate all Markets, (cf. the Tyler
Durden excerpt above) it does not have the Clout it
used to have to Suppress the Gold and Silver Prices. See Deepcaster’s
Article “GOLD: Opportunities + Threats = Opportunities” (6/11/10)
regarding why The Cartel has lost Clout to suppress the Precious Metals, in
the ‘Articles by Deepcaster’ Cache at
Thus given The Cartel’s recently
diminished Clout, these Precious Metals have in 2010 repeatedly bounced back
higher after one or two day Cartel Takedowns.
*We encourage those who doubt the
scope and power of Overt and Covert Interventions by a Fed-led Cartel
of Key Central Bankers and Favored Financial Institutions to read Deepcaster’s December, 2009, Special Alert
containing a summary overview of Intervention entitled “Forecasts and
December, 2009 Special Alert: Profiting From The Cartel’s Dark
Interventions - III” and Deepcaster’s
July, 2010 Letter entitled "Profit from a Weakening Cartel; Buy Reco; Forecasts: Gold, Silver, Equities, Crude Oil, U.S.
Dollar & U.S. T-Notes & T-Bonds" in the ‘Alerts
Cache’ and ‘Latest Letter’ Cache at Deepcaster’s
website. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org, including testimony before the CFTC, for
information on precious metals price manipulation. Virtually all of the
evidence for Intervention has been gleaned from publicly available records. Deepcaster’s profitable recommendations displayed
at Deepcaster’s website have been facilitated
by attention to these “Interventionals.”
Attention to The Interventionals facilitated Deepcaster’s recommending five short positions
prior to the Fall, 2008 Market Crash all of which were subsequently
And perhaps the most significant
Profit-Lesson of all is that, since the Key Sovereign Nations’ (i.e.
U.S. and U.K., and not just the PIIGS) Economic Problems are Mainly Solvency
Problems, not Liquidity Problems as The Fed and other Central Banks
would have us believe, they can not be
solved with more Debt, Bailouts or Q.E. (Money Printing). Thus, more Q.E.
will only worsen these countries Economic conditions going forward. We and
others have considerable evidence that the Cartel has planned these
developments including the Fall, 2008 Market Crash as a part of its
‘End Game’ to increase its Power and Wealth. (See
“Gold-Freedom versus The Cartel ‘End-Game’ & A Strategy
for Surmounting It” (09/23/10) in the ‘Articles by Deepcaster’ Cache at www.deepcaster.com.)
The Key Takeaway from these Observations
is that, short of War, the Greatest Risk for Sovereign Nations, and many
States, Municipalition and, indeed, businesses, is
Default Risk. The likely “Solution” is Currency Devaluation
and/or Actual Default.
Thus, all investments and Trades should
be made with an eye to the Default Risk of, not just the Principals, but of
Counterparties as well.
There comes a point where Extending and
Pretending, so the Can of Economic Worms can be Kicked Down the Road, and the
public can continue to be Lured and Entrapped by Spin and Deception, will No
That Time is Default Time with consequent
At that time One had best have plenty of
Gold and Silver, and other Means to Sustain and Protect Oneself.
And, yes, the Money Struggle is the
Struggle against Totalitarianism.
Wealth Preservation - Wealth Enhancement
Financial and Geopolitical Intelligence
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