|
“The United States is quickly approaching a fiscal Armageddon
and the players in Washington — specifically Treasury Secretary Tim
Geithner and Federal Reserve Chairman Ben Bernanke — don’t
understand what is happening or know what do about it, world renowned investor
and author Jim Rogers tells Newsmax.TV...
…any halt in the decline of stocks was just a
“temporary bottom.”
He said that while America was not at the brink of a fiscal
Armageddon right now, the nation is likely to default on its obligations in
the future.
“This decade absolutely, probably sooner than this
decade… these guys are really, really out of it, they don’t
understand what's happening and we’re all paying the price and
it’s going to get worse.”
Rogers said that despite what economists say, the country
has not left the recession and a depression could happen…
He placed the blame for the country’s economic ills
not on Congress or the White House, but on the Federal Reserve.
“The Federal Reserve is the main culprit because they
kept bailing people out instead of letting the market clear and instead of
letting people go bankrupt and start over,” he said. “If I had to
blame one group I would blame the Federal Reserve under (Alan) Greenspan and
(Ben) Bernanke.””
“Jim Rogers: Bernanke, Geithner Leading Us Into
Fiscal Armageddon”
Henry J. Reske and Kathleen Walter,
moneynews.com, 8/9/11
As disruptive as the worsening Eurozone Sovereign
Debt Crises and the S&P downgrade of U.S. Debt are*, they do serve one
useful Public Function – they usher into Public Consciousness the New
Economic and Financial Reality – The New Abnormal we call it.
“The U.S. government deserves the downgrade Standard
and Poor's slapped on its ratings, because the country has run up so many
debts it will never get out of the hole, say famed commodities investor Jim
Rogers…
The agency is being too nice, as Washington probably
doesn't even deserve the AA+ rating…
"It seems to me it's physically, humanly impossible
for the U.S. to ever pay off its debt," he says. "They can roll it
over and continue to play the charade, but the U.S. is bankrupt."
Investors should go long on gold and commodities, which
will perform well while equities and currency markets digest the extent of
the fallout the downgrade will have.
"You should nearly always buy into panic just like you
should sell hysteria," Rogers says.
"I own gold, I'm worried about gold, it's going so up
so much, I'm not going to sell it but it looks like it's setting itself up
for a nice correction. I hope so. Then I can buy more."”
“Rogers: "Bankrupt" U.S. Will Never Pay
Back Its Bills”
Forrest Jones, moneynews.com, 8/8/11
As Every Serious Investor and Financial Analyst (at
least all those who are not still completely asleep at the switch) now
recognize, a new Financial and Economic Reality is dawning, one with some
characteristics which have not been seen since The Great Depression.
One of the Key Characteristics of that
New Abnormal is one which we have been emphasizing for Years: “Buy
& Hold Rarely Works Anymore”… the exception being the few
instances we discussed in our recent Letters and Alerts.
The following is a summary of Key
Characteristics of that New Abnormal, and Guidelines for Profiting and
Protecting Wealth.
1.) As the recent Equities
Markets Selloffs demonstrate, Fear, and Consequent Risk Aversion is the New
Order of The Day
2.) While Gold, especially,
and Silver are “go to” Safe Haven Assets (because they are Real
Money) with Great Profit Potential,
3.) Gold will typically
Outperform relative to Silver during times of heightened Risk Aversion, but,
4.) Both Gold and Silver
prices are still Vulnerable to Cartel* generated Price Takedowns, as the
early May, 2011 and early August, 2011 Takedowns demonstrate, though less
so than in previous years, And
*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.
5.) These Takedowns should
be welcome in one respect at least because they provide Buying
Opportunities. Our Forecasts in our latest Letter and Alerts indicate
Timing and Targets.
6.) Another Key
Characteristic of The New Abnormal is Debt Saturation, both for Sovereign Nations
and Many Individuals. See our recent Article: “Last Tango Opportunities
& Traps - Overview (8/5/11)” in the ‘Articles by Deepcaster’ Cache at www.deepcaster.com. Debt
Saturation has Serious Consequences. For example,
7.) This Leads to a Slowing
Economy, especially in one in which recent Economic Growth has been
artificially created by Debt. No more debt = No More Growth
8.) Sustainable Growth is
founded on Investment of Savings, not on increased borrowing by Debt
Saturated Sovereigns or businesses.
9.) But the Fed’s
response (via e.g. its recent Zero Interest Rate Policy) is to encourage even
more Unpayable Debt. Coupled with more Money
Printing, this leads to Hyperstagflation. That is,
The Fed-led Cartel’s response to the Crises is, predictably to
“Print” More Money to, inter alia, buy Toxic Unpayable
Debt. But Money Printing in excess of GDP Growth leads to Hyperinflation (on
the Threshold of which we now already stand, with e.g. U.S. CPI at 11.13% per
Shadowstats.com**).
10.) Realize that The
Fed’s Commitment (through 2013) to very low (negative Real) Interest
Rates, is a de facto commitment to Easy Money – a Form of QE 3.
11.) And while this will tend
to keep Mortgage interest rates low…
12.) It will also surely
cause skyrocketing Commodities-especially Food and Energy – Prices in
the Middle and long run (just as QE 1 and 2 have already done) because the
Purchasing Power of the U.S. Dollar will continue to be degraded
**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 July 15, 2011
3.56% 11.13
% (annualized June, 2011 Rate)
U.S. Unemployment reported August 5, 2011
9.1% 22.7%
U.S. GDP Annual Growth/Decline reported August 1, 2011
1.62% -2.83%
U.S. M3 reported August 6, 2011 (Month of July, Y.O.Y.)
No Official Report 2.56%
These aforementioned observations suggest the
following Guidelines for Preparation for the ongoing and Coming Crises.
1.) When possible and protective, Go Local or National. The Mega-Banks and Many State and Community Banks
are Interconnected to all of the rest of our detriments. (Consider how many
U.S. Banks are directly or indirectly Exposed to Greek and Portuguese or
now French! Bank Debt.)
It is worth the research effort to identify banks and other businesses with
less-than-average, or relatively little “Globalist” Exposure. It
is wise to study the variety of publically available measures of bank, and
business, strength.
Think “Bank of North Dakota” as the model, as described in detail
by Ellen Brown.
2.) Buy Protective Hedges, via e.g. Double or Triple
Leveraged, ETFs (see our Portfolios) and liquidate Equities-in-General at the
right time -- a forecast for which we issued in a recent Alert.
3.) Buy High Yield
Securities whose Total return (Gain plus Yield) is likely to exceed Real
Inflation – 11.15% per shadowstats.com**, such as the high yield
portfolio we recommend.
4.) Buy Gold and Silver, but
at propitious time and in a form likely to best weather Cartel* Takedown
Attempts.
“Silver was mauled without mercy as it met with the fate of copper.
This is to be expected during times of risk aversion. For all the silver
bulls out there, please understand this basic principle - Silver will not
outperform gold during a period of risk aversion. Period - Comex silver stocks do not matter. All that matters
is that risk trades get yanked off and silver gets hit harder than gold
because even though it has an historic role as a safe haven metal, it
cannot shed its industrial metal role completely during such times. The
Gold/Silver ratio will therefore move in the favor of gold during periods of
risk aversion when fear trades are the rule. When the risk trades go back on
and traders feel very comfortable taking risk, then silver will outperform
gold to the upside.” (emphasis added)
“Extreme Volatility in Gold as
market digests rumors and risk aversion trades”
Dan Norcini,
traderdannorcini.blogspot.com, 8/4/11
Note: Recent Profits Taken in our Gold
and Silver Portfolios demonstrate the Power of this Method*** (see note
below).
Regarding Gold and Silver Purchases
a) Understand that a
Cartel* of Central Bankers and their Mega-Bank Allies have for years been
suppressing Precious Metal prices.
b) Understand that it is
now harder for The Cartel to successfully suppress prices, because there is
an increasingly severe supply shortage of Physical Gold and Silver,
especially of Silver, because ever more investors are becoming aware that
certain Mega-Banks do not have the Physical Gold and Silver they claim and
thus these wise Investors are taking physical possession, and delivery.
c) Nonetheless, The
Cartel’s Price Suppression Regime is still Potent as the Early May 2011
and early August, 2011 Precious Metal Price Takedowns show, once again.
d) Realize that these Price
Suppression Interventions form Patterns and reveal tendencies, aka Interventionals, which are useful in forecasting the next
Intervention. They facilitated Deepcaster’s
earlier correct forecast that Precious Metal prices would be taken down as
they were in early May (And that is why Deepcaster
recommended taking profits on Silver twice earlier this year and just this
Monday, August 8)
e) Develop a Strategy for
Buying near Interim Lows during takedowns (see below) and taking profits (at
least partial profits near interim highs)
f) If one chooses to
liquidate a portion of one’s Paper Gold and Silver, do so before a
Takedown begins in earnest
g) Use Takedowns as an
Opportunity to Convert Paper Silver and Gold into Physical Silver and
Gold. Not only do you get to buy these Precious Metals “on the
cheap” but you also give the Mega-Bank Market Riggers Fits, because
they have a greatly diminished supply of these Physical Precious
Metals, but unlimited quantities of “Paper Gold and Silver”. Deepcaster has recommended a particular Physical Form of
these Metals which is resistant to Takedowns.
5.) Buy Food Producers and Distributors
More than Energy or Even Precious Metals, Food and Potable Water must be at
the top of Consumer Shopping lists everywhere around the world. With demand
increasing from the 80 million plus annual world population increase, and
increased resources of a growing middle class, especially in BRIC countries,
to buy more and better Food, Food Producers are in the Catbird Seat. The
Problem is exacerbated by the facts that most of the World’s best
arable land is already under cultivation, and that modern agriculture is very
Fossil Fuel (i.e. Portable Fuel) Energy Intensive.
For example, earlier this year we recommended two such Food Producers
and one Water Producer and Management Company, all of which we believe to be
deeply undervalued (one trading at under $6/share, one under $2/share and one
under $1/share).
One is China’s largest producer and Seller of Fresh Fruits and
Vegetables. It also grows Rice and breeds and sells livestock and has over
20,000 employees.
It had a P/E Ratio under 4 when we recommended and profits have grown
over 20%/yr.
As we write it is trading at around 43 cents per share U.S., near its 52 week
low.
Given that P/E Ratio, profit Growth and share price, you
can see why we have called “Food” a “Sleeper”
Subsector.
In sum, there are opportunities now to
develop a Profitable and protective portfolio to weather ongoing and
impending Crises. Ongoing and Impending Crises plus Government/Cartel
Intervention in many markets, provide these excellent Opportunities.
Best
regards,
Deepcaster
***Note: Deepcaster
addresses the questions of Profit and Protection in light of Fiat Currency
Purchasing Power Destruction in his recent article – “Essentials
for Wealth Acquisition Acceleration” and provides Guidelines.
Using such Guidelines allowed Deepcaster to make buy and sell recommendations resulting
in remarkable profits recently if acquired and liquidated when we
recommended, approximately:
25% Profit on Gold Stock on August 8,
2011 after just 201 days (i.e. about 45% annualized!)
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!)
To read our recent article --
“Essentials for Wealth Acquisition Acceleration”, go to
www.deepcaster.com and click on the ‘Articles by Deepcaster’
Cache.
Past Profitable Performance is no
assurance of future Profitable Performance.
Wealth
Preservation - Wealth Enhancement
Financial
and Geopolitical Intelligence
Gravitas,
Pietas, Virtus
|
