“The U.S. Federal Reserve gave out $16.1 trillion in emergency
loans to U.S. and foreign financial institutions between Dec. 1, 2007 and
July 21, 2010, according to figures produced by the government's
first-ever audit of the central bank.
Last year, the gross domestic product of the entire U.S.
economy was $14.5 trillion.
Of the $16.1 trillion loaned out, $3.08 trillion went to
financial institutions in the U.K., Germany, Switzerland, France and Belgium,
the Government Accountability Office's (GAO) analysis shows…
The audit also found that the Fed mostly outsourced its
lending operations to the very financial institutions which sparked the
crisis to begin with, and that they delegated contracts largely on a no-bid
“Audit: Fed gave $16 trillion in emergency loans”
Stephen C. Webster, rawstory.com, 7/21/11
The Staggering Magnitude of Fed (and other Central Bank) Money Printing and
Credit (i.e. Debt) Creation can lead to only one Conclusion for most
Investors around the World and one Question: Conclusion: The Purchasing
Power of my Fiat Currency will continue to Diminish, and, Question:
How do I protect myself and profit?
“I have written frequently (but not recently) about
the wave of “economic terrorism” which Wall Street launched
against Europe – with the full support/blessing of the U.S. government.
With that campaign of terrorism having nearly reached fruition, I will review
these events one more time…
Essentially, it began with Goldman Sach’s
“rape” of AIG. AIG was the “guinea pig” of this
experiment. The banksters had already perfected
their terrorist weapons: interest-rate swaps and credit default swaps. Now
they needed to determine if they actually “worked” – i.e.
if their scam-victims were gullible enough to be fooled by bankster double-talk, and if our legal systems would
“tolerate” this massive, systemic fraud…
The Wall Street banksters (and
some European banking Oligarchs) then systematically targeted every city,
state, and large public institution foolish enough to listen to the banksters’ con…
…what has recently become apparent is that such
terrorist attacks on Europe were merely the means to an even greater
end: to completely plunder all the wealth of these nations.
In furtherance of this objective, the banking crime syndicate (and the
ultra-wealthy bond parasites whom they represent) have formulated a
three-pronged scheme to drain every last drop of wealth from these economies
- Using these fraudulent bond debts to
attach a legal claim on the large, national gold-hoards which
these nations claim to still possess
- Attaching “loss guarantees”
to the bad-debts of the Euro debt-sinners
- Ramming through a full economic
integration of all these Euro-zone nations
I will address these economic “crimes against humanity” in
“Economic Rape of Europe Nearly Complete, Part I & II”
Jeff Nielson, lemetropolecafe.com, 7/23/11 & 7/25/11
Increasing Economic and Financial
Uncertainty, Conflicting Analyses and Numbers, make it important to identify
Essential Facts so Wealth Protection and Wealth Acquisition Acceleration can
First, Key Facts, then, with that factual
basis, Wealth Acquisition Acceleration Guidelines.
- Money and Credit Creation (Monetary
Inflation) in excess of Real GDP causes Price Inflation.
Price Inflation means the Purchasing Power of the Monetarily Inflating
Currencies is being and will continue to be degraded, e.g. the
Purchasing Power of the U.S. Dollar has declined about 97% in the last
hundred years, and about 30% in the last decade (basis USDX, and much
more basis Gold).
- This excessive Fiat Money and Credit (i.e.
Debt) Creation has already brought us to the threshold of Hyperinflation
if one considers the Real Numbers rather than the Bogus Official
**Shadowstats.com calculates Key Statistics the way they were calculated
in the 1980s and 1990s before Official Data Manipulation began in
Bogus Official Numbers vs. Real
Numbers (per Shadowstats.com)
Annual U.S. Consumer Price Inflation reported July 15, 2011
% (annualized June, 2011 Rate)
U.S. Unemployment reported July 8, 2011
U.S. GDP Annual Growth/Decline reported June 24, 2011
U.S. M3 reported July 16, 2011 (Month of June, Y.O.Y.)
Official Report 2.29%
- Ongoing Fed-led Excessive Money and Debt
Creation is the Primary Cause of recent Price Inflation in Energy Food,
and other Essential Commodities.
- This Price Inflation is impoverishing the
Middle Class around the developed world. In the U.S. for example,
adjusted for inflation, the average wage is lower than it was in 1971,
Real U.S. Unemployment is 22.7% and Real U.S. CPI is 11.13%.
- Middle Class impoverishment across the
developed world (as reflected e.g. in the worsening housing
crisis in the U.S.) coupled with unpayable
Sovereign and Private Debts, make Economic Recovery soon, highly
- The foregoing Middle class impoverishment is
understandable given that the Bailouts and QE have mainly enriched the
Mega-Banks as Stephen Webster’s Article points out.
Indeed, Bob McHugh expresses it well when he says:
“The U.S. Dollar is being devalued by the Federal Reserve…
QE 2 was nothing more than devaluation of the Dollar for the benefit of
only Wall Street Money Center banks. This is a fraud on the American
people who got nothing from QE 2, no jobs, no reduction of their debts,
no increase in the value of their homes, no reduction of taxes, no cash,
nothing. QE 2 was also responsible at least in part for massive food and
energy inflation which is damaging global economic growth. How? Because
Wall Street found itself with too much cash after selling fixed income
Treasury and garbage securities to the Fed, and bid up commodity prices
with this cash as it sought trading profits from commodity purchases
with this newfound cash. Bernanke will one day be known as the man who
was a key catalyst driving global economies into the abyss.”
Weekend Market Newsletter, 7/22/11
- This enrichment has been at the expense of
Investor Taxpayers who are either directly or indirectly (via e.g. Fiat
Currency Purchasing Power Degradation) on the hook to pay for/underwrite
the Bailouts/Sovereign Debts.
- National Assets (e.g. Gold-hoards) are being
confiscated by the Mega Banking Cartel as Jeff Nielson (and others)
points out above. Indeed, certain Major Nations will likely be faced
with only two choices. Either: National Bankruptcy and loss
of National Assets and Sovereignty OR Debt Repudiation and
consequent Mega-Bank Failure.
- Economic Recovery in the Developed World any
time soon is not possible unless and until the Middle Class Recovers.
- Creating more Debt is no Solution to the
problems of too much Debt whether for the USA, the PIIGS, or other
Countries. The Can cannot be kicked down the Road much farther when The
End of the Road (a Precipice) is very near.
- The Key to Wealth Protection and Wealth
Acquisition Acceleration is found in the following Observation and
“During the last decade of Greatly Increased Money and Debt
Creation, the price of Gold soared by over 500% and Silver by over
Conclusion: buy Gold and Silver as both a
Wealth Protection and Wealth Acquisition Accelerator.
But this Conclusion comes with an
important Timing Caveat: because of the Fed-led Cartels* ongoing attempts at
Suppression of Gold and Silver Prices, properly timing ones purchases is
*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 www.deepcaster.com. 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 www.deepcaster.com 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 liquidated profitably.
Throughout the Process from Monetary
Inflation (e.g. in the “cheap money” 1st decade of the
21st century and in QE 1 and 2) to Price Inflation (e.g. beginning
now) to Price Hyperinflation and then Depression, Gold tends to appreciate
(Caveat: But beware of “Paper Gold” and Cartel* Price
Suppression Attacks). Indeed, it has appreciated dramatically in the last
decade in Fiat Currency Terms, performing much better than
Equities-in-general which, considering Inflation, have actually lost value.
Initially, in the Fiat Currency Monetary
Inflation phase, Gold, as The Ultimate Money, appreciates because all
Major Fiat Currencies decline in Purchasing Power vis
a vis Gold, (albeit in
varying Degrees) as they have for the last decade.
And then, as Price Inflation becomes
Price Hyperinflation, Gold Soars as Fiat Currencies’ Purchasing Power
Plunges. Indeed, we reiterate we have already arrived at the Hyperinflation
threshold with the Real U.S. CPI at 11.15% per Shadowstats.com**.
After that Hyperinflation, as Economic
Depression Sets in (and thus when Fiat Currencies have lost much of their
value) Gold tends to Retain its value vis a vis the Damaged or Destroyed Fiat Currencies.
One other consideration relates to Gold
(and other Precious Metal) Mining Shares. Their Value tends to track
Bullion prices only somewhat, because they are after all, and above all, Stocks.
Thus, overall Stock Market performance is likely to be a substantial
determinant of their Price at any given time, rather than their Value as
actual or potential Precious Metal producers.
Maximizing Value in Precious Metal shares
(as opposed to Bullion) is thus in large part a matter of Timing…
Generally speaking, they are better purchased near the Bottom of Equities
Markets Downlegs, and/or Cartel Takedowns. Deepcaster’s Recommendations regarding Timing have
resulted in Significant Profits for those who followed our recent
Silver, The Poor Man’s Monetary
Metal, can in the Hyperinflationary Process be expected to perform similarly
to Gold, except for the fact that it is also an Industrial Metal, used, and
used up, by Industry.
While Gold has recently powered up to
trade around its all-time Nominal High around $1620ish/oz,
Silver has in recent years been stronger even yet, recently trading around
its all time high of $50.
But it is important to note that while
Silver has in recent years been acting more like the Monetary Metal that it
is, rather than the Industrial Metal that it also is, its price is also in
part a function of perceived Economic Prospects.
For example, the prospect of sustained
Higher Oil Prices justifiably exacerbates fears that such high prices will
dampen Economic Activity, thus dampening demand for Industrial Metals,
including Silver. On the other hand, the Price of Silver as Safe Haven Money
has spiked UP along with Gold in the Past Decade. Indeed, Silver prices are
spurred by a Critical and Worsening Supply Shortage of Physical.
Moreover, recently Prospects for another
Economic Downturn provided the Cartel with a pretext and Opportunity (in late
April, early May, 2011) to drive Silver down from $50ish/oz
to a low of $33ish/oz.
Thus we have, and will continue to have,
this Very Volatile situation in the Precious Metals Arena with the Contenders
being: The Cartel vs. Economic and Financial Reality.
Any perceived diminishment of The
Intensifying Crises around the World and/or a Major Equities Takedown will
surely bring renewed and intensified Cartel Suppression Attacks on the
Precious Metals Prices. But Cartel Price Suppression attacks on the Precious
Metals has, in large part due to increased demand and tightening supply of
physical (especially for Silver), been less successful recently than in past
Therefore, we have Forecast the
approximate timing and Targets for an even more Vigorous Cartel Attack on
Precious Metal in our most recent Alerts.
And that will provide a test of The
Cartel’s Precious Metal Price Suppression Power, which has been
diminishing of late.
In the Middle and Long Run, Gold and
Silver are likely going higher, much higher.
The Third Protective Category with Wealth
Protection and Wealth Acceleration Potential is Agricultural Products (and
Producers) in relatively Inelastic Demand. Whether in a Hyperinflation, or in
a Depression, people will buy Food first above all else.
Fortunately, in this Sector, there are
still “Sleeper” Opportunities.
Indeed, there are still several companies
in this Sector which are quite undervalued.
Deepcaster recommended two earlier this year -- one trading at
just over $5/share and the Other at just under $2/share.
And more recently, we recommended a third
‘Sleeper’ Sector Industry leader, which has a huge and expanding
Asian Market and a recent P/E Ratio of under 4, and which trades under 45
cents/share (in $U.S.) and has Tremendous Appreciation Potential.
To Consider these three “Best of
the Best” Sleeper Sector Investments, read our March, 2011 Letter
– “Main Gold, Silver & ‘Sleeper’ Sector Price
Movers; ‘Sleeper’ Buy Reco.; Forecasts:
Gold, Silver, Equities, Crude Oil, U.S. Dollar, and U.S. T-Notes &
T-Bonds; March 2011 Letter”, and Alert -- “Golden Green Opportunity
Buy Reco.; Forecasts: Commodities, Gold, Silver,
Equities, Crude Oil, U.S. Dollar, and U.S. T-Notes & T-Bonds” in
the ‘Alerts Cache’ at www.deepcaster.com.
In sum, in the Medium and Long Run, we
see the aforementioned Equities Bearish Factors overwhelming the Bullish
Ones, which will have Severe Negative Consequences for Equities-in-General
and for certain Commodities which are in relatively Elastic Demand.
Given this Negative Scenario Safe Havens
with Great Profit Potential are Gold, Silver (with Timing Caveats, especially
for Shares) and Agricultural Commodities (including Prime Farmland) in
relatively inelastic demand (such as Grains and Foodstuffs in
general), and businesses focusing on them.
Deepcaster’s General Guidelines and Considerations for the
aforementioned Sectors and in light of Cartel Market Manipulation (i.e.
especially in the Precious Metals Market) are fivefold:
- Buying on Dips, coupled with a
Willingness to Tolerate Great Price Volatility
- The Core Holdings of Ones’ Precious
Metals Position are best held in one particular form (see our Precious
Metal Recommendations) of the Physical Metals, in Personal Possession
- that Well Managed reasonably priced Miners with
Substantial Reserves be bought on Dips (e.g. near the Bottoms of Cartel
engineered Takedowns), and, if one is a Trader, a portion sold near
- that a portion of One’s Holdings be in a
Dividend Paying Precious Metals Fund such as one which we have Recommended,
- Regarding Silver, since it is also an
Industrial Metal, it is especially vulnerable to Slowdown in Economic
Activity and (especially for the Shares) Takedowns in the Equities
In sum, we expect another Markets Crisis
is coming and the Fortress Assets Gold, Silver and Food are the place to be.
We reiterate, finally, that, given the
aforementioned Negatives, a Crisis is likely already “baked into
the cake.” The Fed’s (and Eurozone Bankers) Fiat Currency
Purchasing Power Degradation via Q.E. cannot go on forever, and, in any
event, additional Q.E. worsens the Inevitable Crash because it serves only to
pile more Debt upon already Unpayable Debt.
The Wise are Well-Advised to prepare
for the Coming Hyperinflation, by seizing Impending Fortress Assets
Considered together the foregoing Facts
and Guidelines provide the Essentials for Wealth Acquisition Acceleration.
July 28, 2011
*** Recent Profits Taken:
38% Profit on Silver on July 18, 2011
after just 201 days (i.e. about 68% annualized!)
150% Profit on Gold Stock Calls on July
13, 2011 after just 56 days (i.e. about 975% annualized!)
40% Profit on leveraged Short Treasuries
ETF Puts on April 15, 2011 after just 3 days (i.e. about 4800% annualized!)
30% Profit on Silver on April 6, 2011
after just 98 days (i.e. about 111% annualized!)
Past Profitable Performance is no
assurance of future Profitable Performance.
Preservation - Wealth Enhancement
and Geopolitical Intelligence