“It is
absurd that the United
States has a central bank that is more accountable
to the financial industry than it is to the public.”
“The Rally
against Obamacare for the Banks”
Dean Baker, The
Guardian, 9/23/09
“…Only
liquidation of the biggest banks can enable a recovery, period!! Of
course, the process is complicated, especially politically. Actually, it is
more than political, since the big banks control the USGovt. The
response reaction from gold & silver will give loud messages to systemic
failure, as money is wasted, invested in failure, and directed to the elite
troughs…
The major 100
banks in the US
are almost without exception insolvent, and thus do not lend.
Sure, they boast a positive book value, but only after given permission to
use phony FASB accounting rules. They can declare their assets at any value
they wish. In fact, on many debt securities, they actually declare unrealized
losses as gains…The FDIC came out this week to announce the Q2 list of
problem banks went from 775 in number to 829…The main thrust of the
limp activity is monetary creation, banker welfare, absurd programs, and war
spending…
The American
Intl Group episode was disguised from its true nature as a Goldman
Sachs bailout. In fact, the record has been somewhat clearly told that the
AIG nationalization enabled GSax to be first in line for credit default
contract redemptions, at full price. They saved $11 billion in the
nationalization and butting in line. There are advantages to acting as the
USDept Treasury administrator. Many other big banks had favorable redemptions
on similar insurance contracts. The wreckage of the entire US
banking sector was thus covered up from the insurance perspective, preventing
a credit derivative blowup…
The Fannie
Mae episode was one best described as averting either a mortgage bond
default or a severe jump in mortgage rates emanating from the sewage
treatment plant. In pulling off the nationalization of the wretch, the Wall
Street controllers thus placated a crucial angry mortgage creditor. China…
For vivid
indications of failure, notice the slide into recession even after 20 months
of near 0% official interest rate. The USFed has no more weapons except
the Printing Pre$$... The ultimate problem is insolvency laced like
cancer throughout the entire system, from housing, to households, to banks,
to government fiscal situation, even to industry (long gone). The USFed
cannot treat insolvency. Only liquidation can… The US
bankers who have run the land for two decades have run out of asset bubbles
to blow. Each growth period of 5 to 7 years has been driven by the
next asset bubble in sequence, not industrial development or output…
Plain language
works best at this point. The USGovt, as demonstrated by its
nationalizations, big bank rescues, grand aid packages (car industry), and
support of extreme measures, has invested heavily in failure, fraud, and
banker elite welfare otherwise called pillage. They also have invested in
sacred wars at great cost. The USGovt has not invested much at all in business,
jobs, family, and life. The flimsy shallow vacant home loan programs
exemplify the lack of support and aid for the public…
The failure
pertains to the US
financial sector in its entirety, from banking system to credit market. The
failure is exacerbated by wasted expenditures toward what are called rescues
and stimulus, but is actually banker welfare payouts… We are witnessing
a syndicate in survival mode, in a desperate quest to save the system they
exploit so thoroughly…
The extreme usage
of the Printing Pre$$ in the next round of Quantitative Easing, dubbed QE2,
will set up crippling explosions…
The worldwide
recession will keep the crude oil price subdued until the USTreasury bubble
pops. Then, at that time, several major commodity hedges will jump in price…
An inflationary depression lies dead ahead!...
The secret to a
legitimate solution is easy. The big banks must write down their credit
portfolios, and accept deep losses. If that results
in liquidation, so be it!!... The Zombie Big Banks threaten the entire
system. If truth be told, they control the leadership of the USGovt itself.
Dead entities control the USGovt, lodged in a stranglehold!!...
However, they
control the USGovt, its finance ministry in the USDept Treasury, and the USDollar
Printing Pre$$ itself. The big banks will NOT order their own death warrant,
and face the financial gallows… Capitalism demands their plowing
under to unleash hidden potential…
The ball &
chain dragging down and keeping down the big banks is the housing market. The
downward force of gravity is visible in the falling home prices… Other
commodities will be sacrificed in wholesale form in order to purchase energy
and precious metals. Energy is needed for commercial survival, while gold is
needed as bonafide safe haven for money…
The new debt,
delivered as fresh paper, acts like acid on the capital base of the entire
USEconomy…
A river of
hyper-inflation is lodged in the USTBond dam, whose walls are nothing more
than paper reeds held together by bad verbal glue, uttered by bank leaders
who increasingly lack credibility…”
“Gold &
Investment in Failure”
Jim Willie CB,
GoldenJackass.com, 9/1/10
“Are we
witnessing the slow but certain death of cash in this generation? Is a
truly cashless society on the horizon? Legislation currently pending in
the Mexican legislature would ban a vast array of large cash transactions,
but the truth is that Mexico
is far from alone in trying to restrict cash. All over the world, governments
are either placing stringent reporting requirements on large cash
transactions or they are banning them altogether. We are being told that such
measures are needed to battle illegal drug traffic, to catch tax evaders and
to fight the war on terror. But are we rapidly getting to the point where we
will have no financial privacy left whatsoever? Should we just accept that we
have entered a time when the government will watch, track and trace all
financial transactions? Is it inevitable that at some point in the near future
ALL transactions will go through the banking system in one form or another
(check, credit card, debit card, etc.)?”
“The Death
Of Cash? All Over The World Governments Are Banning Large Cash Transactions”
Economic Collapse
Blog, 8/30/10
The claim that
several international Mega-Banks are insolvent but for Mark-to-Model (more
accurately, Mark-to-Myth) Accounting, may well be true.
And it certainly
is true that several would have been Insolvent were it not for Taxpayer
– funded multi-hundred billion dollar Bailouts.
Indeed, generally
speaking, the taxpayers of the U.S.
and Eurozone have ultimately been saddled with the bulk of the Toxic Assets
(in the U.S. Courtesy of the private-for-profit Fed), while the Mega-Banks
are left with a combination of Toxic Assets and Performing Assets, such as
they are.
This much is
history. But the Main and Present Problem which we address here is The Issue
of how Excessive, and probably unpayable multi-Trillion Dollar (Pound,
Euro, etc.), Public and many Private Debts finally gets resolved and how
investors can prepare to protect, and profit, NOW, before more Crises and
their Toxic Fallout.
The Reality is
that much Public (and Private) Debt is unpayable without currency Devaluation
or Default. For example, an estimate of U.S. Public Obligations reveals that
the one year U.S. Budget Deficit alone is $13 Trillion and to that must be
added downstream unfunded liabilities which range from $100 to $200 Trillion
depending on whose estimates one believes. Given this range, does the
exact amount matter? It is unpayable.
Worse still,
Major Sovereign Nations are still leveraging up by piling on more and
more debt. In the U.S.,
the private for-profit Fed prints money for free and lends it to the U.S.
Taxpayers with interest.
And while the
Private Sector is deleveraging, it is not healthy, Unemployment
is not abating and the housing market is not recovering!
And to whom is
most of this Public and Private Debt owed? Answer: Mainly to the
International Mega-Banks (the same ones who got us into this Financial fix
via their pro-bubble credit policies). Hold that important thought. We shall
return to it.
For most Major
Sovereign Nations Default is not a likely option (though some like Greece
may be forced into it). Much more likely is Currency Devaluation of e.g. the
Purchasing Power of the U.S. Dollar and Euro and British Pound e.g. via the
printing press.
Of course this
works a huge hardship on Savers and Retirees and Investors, as it is a de
facto Confiscation of their hard-earned assets.
And there is
another Confiscation brewing. The “U.S.
Depts. Of Labor and Treasury Schedule Hearing on Confiscation of Private
Retirement Accounts” P.A. Heller’s recent headline on
coinupdate.com reads.
Indeed the $6
Trillion or so in IRA’s and 401(k’s) is a juicy target indeed for
the overly indebted U.S.
This Confiscation would be effected by requiring Assets of IRA’s and
401k’s to be invested in U.S. Treasury Bond “Backed”
Annuities.
Thus would the
Confiscation be veiled.
But with Massive Ongoing
Monetary Creation likely to result in dramatic devaluation of (U.S.
for example) Treasury Securities’ value over the next few years, such
Mandatory Conversion is a de facto Wealth Confiscation.
So with U.S.
Dollar and Euro and Pound Devaluation (in terms of Purchasing Power) likely
coming along with de facto Wealth Confiscation, what should an Investor do?
Investors-Citizens
can either submit and allow their Financial future to be determined by the
Mega-Bankers (and all the while suffering degradation of the Value of their
Assets). OR
They can work to
create Political and Financial Structures and Conditions which make a Real
Recovery Possible.
Indeed, Jim
Willie argues (above) that “Only liquidation of the biggest banks can
enable a Recovery, Period.” Perhaps so.
In other words,
Willie’s point appears to be that if the very biggest banks were
allowed/forced to collapse (by e.g. requiring Mark-to-Market Accounting), the
public and private debt owed to them would be eliminated…sort of.
Voila! A Fresh
Start for Major Nations and Citizens.
The Course of
standing supinely by while the purchasing Power of the U.S. Dollar (and other
Major Fiat Currencies) is dramatically degraded, has many negative
consequences addition to lost Retirement Assets and Savings. (But there is
yet a Way to Profit and Protect which we sketch below.)
This
“Option” of facilitating the U.S. Dollar (Pound, Euro, etc.) Degradation
is, we have long maintained, a component of The Cartel’s* End Game for
which, evidence increasingly indicates, they have long been planning (see
Deepcaster’s articles cited below).
Indeed, The
Fed-led Cartel’s* ‘End Game’ Juggernaut is Rallying Profitably
Along – “profitably” to the Tune, for example, of a $11.8
Trillion gain for certain Mega-Financial Institutions in the last 6 months of
2008, when Equities Investors worldwide were losing Trillions in the Equities
Markets Crash. (See The Central Banker’s Bank’s (The Bank for
International Settlements) website www.bis.org (Path:
Statistics>Derivatives>Table 19) and “Opportunities &
Threats in Derivatives Shocker” (05/29/2009) in the ‘Articles by
Deepcaster’ cache at www.deepcaster.com.)
These Massive
Gains were doubtless “facilitated” by The Fed-led Cartel’s
Interventional Regime which we describe in detail in the articles noted
below. Indeed, there is clear and convincing evidence that The Federal
Reserve leads a Cartel of key Central Bankers and favored Mega-Financial
Institutions in an ongoing Regime of Overt and Covert Manipulation of
the Precious Metals Equities, Strategic Commodities and other Markets, as we
also demonstrate in the articles noted below.
*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.
Fortunately there
are Steps which Investors worldwide can take to derail the Juggernaut, and
Profit and Protect along the way.
Why derail the
juggernaut, one may ask.
One answer is
that the Fed-led Cartel’s policies appear to have resulted and to be
resulting in a massive Wealth Transfer from Investors/Taxpayers around the
world to the Fed-led Cartel and their favored financial institutions.
Of course, a key
component of this Wealth Transfer involves debasing the value of the U.S.
Dollar which, which HSBC has correctly noted primarily results from
“the ultra-loose monetary policy of The “Federal Reserve”.
Since The Fed was established in 1913 the U.S. Dollar has lost over 95% of
its purchasing power, as reported by Rep. Ron Paul and others.
One of several
negative consequences is that Investors who have saved (they thought) wealth
in Dollars over a lifetime have seen the purchasing power of those dollars
dramatically eroded by, for example, over 35% in the last 8 years alone, and
the erosion continues.
Unfortunately,
there is considerable evidence that “ultra-loose monetary” and
credit policies, and the consequent housing credit crises and Market Crash
were the result of the conscious policy of the Fed-led Cartel.
Consider the
following observation by Harry Schultz:
“…what
is the reason for this “seemingly random monetary mess that multiplies
its momentum every day? The answer, in one word, control. The elite/insiders
already have control of the financial system, but they wanted more, much
more…and it was not random, it was planned.”
(emphasis added)
“How
will all the above manifest itself in your life? The answer:
“All you own will shrink...your income, assets, net worth, will shrink
year after year in real terms inflation adjusted and possibly also nominally.”
HS
Letter, April 27, 2008
Harry Schultz, Eminence Grise of the Newsletter writing Fraternity sees the
Threat to Profits and Wealth posed by the Fed-led Cartel* quite clearly.
The Cartel*
‘End Game’, as Deepcaster has named it, apparently involves
Stealthily transferring ever more Wealth and Power to The Cartel at the
expense of Investors/Citizens around the world. (For more details, see
“Coping with the Superpower Cartel Threat” (1/30/09) in the
‘Articles by Deepcaster’ cache at www.deepcaster.com.)
In this
connection we must consider F. William Engdahl’s contention that the
2008 Credit Crunch and Market Crash were planned: “…in every
major U.S. financial panic…the titans of Wall Street…have
deliberately triggered bank panics behind the scenes to consolidate their
grip on U.S. Banking…”
As background to
understanding the ongoing implementation of the Cartel’s Interventional
Regime and “End Game” consider Engdahl’s position:
“…in
every major US financial panic since at least the Panic of 1835, the titans
of Wall Street – most especially until 1929, the House of JP Morgan
– have deliberately triggered bank panics behind the scenes in order to
consolidate their grip on US banking. The private banks used the panics
to control Washington policy including the exact definition of the private ownership
of the new Federal Reserve in 1913, and to consolidate their control over
industry such as US Steel, Caterpillar, Westinghouse and the like. They
are, in short, old hands at such financial warfare to increase their power.
Now they must do
something similar on a global scale to be able to continue to dominate global
finance, the heart of the power of the American Century.
That process of
using panics to centralize their private power created an extremely powerful
concentration of financial and economic power in a few private hands, the
same hands which created the influential US foreign policy think-tank, the
New York Council on Foreign Relations in 1919…”
“Behind the
panic: financial warfare over future of global bank power”
F. William Engdahl,
October 10, 2008
Consider the
implications of the F. William Engdahl quote regarding “global bank
power.” As Engdahl points out, the evidence is increasing that
the recent financial panic and economic distress is and has been pre-planned
as a part of Cartel Strategy to increase power and, in our view, to implement
its “End Game.”
In light of these
considerations it is not surprising that the Mega-Banks were the first to be
Saved in the 2008 financial crisis. That is, a Major Negative Consequence of
the Fall, 2008 Market Crash was a Taxpayer Funded Financial bailout of
several Key Mega-Banks. Yet the Bailouts allowed them to move on to
subsequent great profitability.
Consider the case
of Goldman-Sachs. Not only did Goldman receive billions in TARP funds
(subsequently repaid) but they also received $11.9 billion via the AIG
bailout, without having to take any ‘Haircut’ on their
debased Assets.
One result was
that Goldman survived and reportedly has paid an average of $500,000
plus to each employee in compensation.
Meanwhile, the
U.S. Consumer/Taxpayer and often Investors/Mortgage Holder who is 70% of the
U.S. Economy is left with Greater Debt (to fund the Bailouts) and interest
payments on that debt to the private for-profit U.S. Federal Reserve. Goldman
et.al, but for the bailouts, would have collapsed. But the U.S.
Consumers-Taxpayer and Small Business Owners, however, have not been
“saved” at all.
To understand the
Cartel’s likely “End Game” we must understand the Root
Cause.
The Root Cause of
The ‘End Game’ Threat lies in the secrecy, structure, functioning
and policies of the private-for-profit “U.S.” Federal
Reserve.
Various
international private banks, several of which are headquartered in Europe,
own the “United States” Federal Reserve Bank. The European Banks
were among the founding banks whose representatives, including Paul Warburg
who wrote the charter at the Jekyll Island Georgia meeting, as documented in
“The Creature from Jekyll Island”, by G. Edward Griffin.
These
International Bankers, acting through their “U.S.”
Fed, make money by creating money out of “thin air” as eloquently
described by the Dean of the Newsletter Writers, Richard Russell:
“I still
can’t get over the whole Federal Reserve racket.
Consider the
following - - let’s take a situation where the U.S. government needs
money. The U.S. doesn’t just issue United States Notes, which, of
course it could. These notes would be dollars backed by the full faith
and credit of the United States. No, the U.S. doesn’t issue
dollars straight out of the U.S. Treasury.
This is what the
U.S. does - - it issues Treasury Bonds. The U.S. then sells these bonds
to the Fed. The Fed buys the bonds. Wait, how does the Fed pay
for the bonds? The Fed simply creates money “out of thin
air” (book-keeping entry) with which it buys the bonds. The money
that the Fed creates from nowhere then goes to the U.S. The Fed holds
the U.S. bonds, and the unbelievable irony is that the U.S. then pays interest
on the very bonds that the U.S. itself issued. (With great profit to
the private owners of The Fed - - Ed. Note) The mind boggles.
The damnable
result is that the Fed effectively controls the U.S. money supply. The
Fed is …not even a branch of the U.S. government. The Fed is not
mentioned in the Constitution of the United States. No Constitutional
amendment was ever created or voted on to accept the Fed. The
Constitutionality of the Federal Reserve has never come before the Supreme
Court. The Fed is a private bank that keeps the U.S. forever in debt -
- or I should say in increasing debt along with ever rising interest payments.
How did the Fed
get away with this outrage? A tiny secretive group of bankers sneaked
through a bill in 1913 at a time when many in Congress were absent.
Those who were there and voted for the bill didn’t realize (as so often
happens) what they were voting for (shades of the shameful 2002 vote to hand
over to President Bush the power to decide on war with Iraq).”
Richard Russell,
“Richards Remarks,” dowtheoryletters.com, 3/27/07
After President
Wilson signed the Federal Reserve Act into law in 1913, he reportedly said,
“I am a most unhappy man, I have unwittingly ruined my country…a
great industrial nation is now controlled by its system of credit…the
growth of the nation, therefore, and all of our activities are in the hands
of a few men…” Thus we have an early statement about the threat
to “democracy” occasioned by The Fed.
Market
Intervention, Data Manipulation & The Cartel “End Game”
As Richard
Russell points out the creation of ever-increasing debt and interest payments
is unsustainable. Thus there will inevitably be a Day of Reckoning, a Day
which is fast approaching.
In order to
“manage” the Economy and Financial System on its way to The Day
of Reckoning (which, we reiterate, is coming mainly as a consequence of The
Fed’s dramatic monetary inflation and earlier “easy credit”
policies), and to implement its own ‘End Game’, the Fed-led
Cartel* of Key Central Bankers and Favored Financial Institutions has
created, and for the past several years has operated, an extraordinary
“financial regime” built on dramatically increasing
trillions of dollars (nearly $600 trillion as of December, 2008 - -
see www.bis.org
(path: statistics>derivatives>Table 19 and ff.) of Dark OTC
Derivatives available for the manipulation of major markets ranging from
Precious Metals to Crude Oil and Energy, to Equities and Strategic Commodities
(see Deepcaster’s July, 2008 Letter at www.deepcaster.com).
To be sure The
Cartel’s massive and increasing use of derivatives to intervene
(Overtly and Covertly via Primary Dealers) in a wide variety of
markets is fraught with danger (e.g. through actual and prospective
counterparty failure as we are now seeing, as well as prospective Systemic
Failure). Deepcaster, Warren Buffett and Jim Sinclair have pointed out
the dangers of OTC derivatives. Indeed, Buffett calls them
“toxic” … ”weapons of financial destruction”
and Sinclair has aptly described the financial system as “sitting on
a… trembling mountain of derivatives … think Weimar
Republic.” Unfortunately, Deepcaster, Jim Sinclair, and Warren
Buffett are correct.
The
Crisis Intensifies – The “End Game” Implementation Begins
Indeed, the
evidence indicates that The Cartel has developed a nefarious “End
Game” plan, an overview of which we describe in our June, 2007 Letter
“Profiting From the Push to Denationalize Currencies and Deconstruct
Nations” and the August 13, 2006 Alert “Massive
Financial-Geopolitical Scheme Not Reported by Big Media” posted in the
“Archives” at www.deepcaster.com.
Fortunately, a Bill was introduced in a recent session of the U.S. Congress
(H.Con.Res.40), which opposes this nefarious scheme.
Nevertheless,
consider the following key aspects of that ‘End Game’ that have
been implemented through various departments of the U.S. government agencies
and NGOs.
Data
Manipulation
Masking the True
State of the Economy and Financial Markets, is another aspect of The Cartel
Regime – Data Manipulation.
Shadowstats.com
calculates the Real Numbers for the U.S. the way they were calculated in the
1980’s and 1990’s, before systematic Official Data Distortion and
Interventions began in earnest.
Official Numbers vs. Real
Numbers (per Shadowstats.com)
Annual U.S.
Consumer Price Inflation reported August 13, 2010
1.24% 8.57%
(annualized July 2010 Rate)
U.S. Unemployment
reported September 3, 2010
9.6% 22%
U.S. GDP Annual Growth/Decline
reported August 27, 2010
2.98% -1.25%
U.S. M3
reported September 4, 2010 (Month of August, Y.O.Y.)
No Official
Report -
4.32 %
Shadowstats.com
calculates the numbers as they were calculated prior to the
“gimmicking” of Official Statistics that became widely
implemented beginning in the 1980s and early 1990s.
We emphasize,
Real U.S. GDP “growth” is a negative number -- about a negative
1.25%, according to shadowstats.com, as opposed to Official Figures showing a
positive 2.98%.
That the U.S.
economy (about 25% of the international economy) is headed in the direction
of Serious Stagflation (a Kondratieff Winter) is pretty clear from the very
credible shadowstats.com statistics cited above. Predictions of Recovery any
time soon are a combination of Media Hype and Fed “Communications
policy”.
As well, the U.S.
Dollar’s Purchasing Power has declined substantially in the past decade
and it appears that The Cartel expects (and likely are even pushing) the U.S.
Dollar to go into further and further decline, over the medium term, and to
continue their other policies, until there is a “No-Salvation,
No-Return Systemic Crisis.”
It would appear
that The Cartel-charted-course toward a Stagflationary Recession/Depression,
and thus toward the further implementation of their “End Game,”
is on course. For more details on the ‘End Game’ see the articles
referred to above.
Indeed, the
official and Agency Data Manipulation serves to conceal painful Economic and
Financial Realities from the public. One Reality that is still partially
concealed is the consequences of the U.S. Dollar Destruction for the
public.
The ongoing
destruction of the U.S. Dollar’s purchasing power results in a de facto
confiscation of retirees and Investors assets which typically took a lifetime
(and indeed in some cases Generations) of wealth-building.
In addition to
the de facto Power and Wealth Grabs of U.S. Dollar Destruction and Data
Manipulation, The Fed continues to grab power in other Financial Arenas.
Clearly, the
Congress’ and the Obama Administration’s recently enacted FinReg Bill
further empowers The Fed (via e.g. the new power to regulate non-financial
institutions) and in that respect is a recipe for disaster for Investors and
citizens alike.
Fortunately and
in light of all of the foregoing Deepcaster has developed a Strategy for
Protecting Wealth as well as Profiting and notwithstanding near-term outcomes
of the battle over Fed Power:
The
Strategy – Guidelines for Identifying Opportunities for Profit and
Protection
1.
Get
the Real Data. As many Investors suspect, Crucial Official
Government and Agency Economic and Financial Data are of highly questionable
validity. The Data set forth above from shadowstats.com is a good
starting point as is data from Alternative Data Sources such as Deepcaster,
Gold Anti-Trust Committee (www.gata.org), and shadowstats.com.
2.
Take
Account of both Overt and Covert Cartel Intervention.
Many of these same investors who suspect Official Statistics also rightly
suspect that the private-for-profit U.S. Federal Reserve and/or Central Banks
overtly and covertly manipulate Major Markets. But they might not be
aware that covert Market Interventions and Data Manipulation are
likely far more pervasive than generally believed, as detailed in
Deepcaster’s articles mentioned above.
As well, such
investors may not have thought systematically about how one copes with and
profits from such Intervention and Data Manipulation.
For example, in
early March, 2008 Gold was over $1000/oz. when the Bear Stearns Crisis
revealed the fragility of the Financial System. Gold should surely have
skyrocketed then. Instead, it was brutally taken down. Were its
price not manipulated, Deepcaster’s view is that its price would be
over $3,000.00 per ounce today.
But there is a
Profitable Refuge from Market Intervention and Data Manipulation. That
Profitable Refuge lies in the Strategy described in the aforementioned Alert,
certain characteristics of which we outline here:
3.
Recognize
that the “Buy and Hold” strategy rarely succeeds anymore.
The Eminence Grise of Newsletter writers, Harry Schultz perhaps put it the
best when he stated that “buy and hold no longer works anymore, even
with Gold.” Recent Market Developments should suffice to
demonstrate this principle!
Owners of The Dow stocks have seen no appreciation over the last
decade, and have indeed suffered a 30% loss if Real Inflation is considered.
4.
Track
the Covert Interventionals as well as the Technicals and Fundamentals and
Overt Interventionals. Tracking the Footprints, as it were, of
the Covert Interventionals (e.g. the Repo and TSLF Pools) daily can often,
but not always, give one excellent clues about The Cartel’s next likely
Interventional Move - - such clues are essential to preserving wealth and
making profits. Deepcaster’s tracking of The Interventionals, for
example, allowed him to recommend five short positions going into
September, 2008, (i.e. before the Market Crash) all of which he has
subsequently recommended be profitably liquidated. Deepcaster’s article
“Cartel Angst Equals Investor Advantage” (9/18/2009 can be found
in the ‘Articles by Deepcaster’ at www.deepcaster.com) lays out a
specific strategy for use in investing and trading in the heavily manipulated
Gold and Silver Market.
5.
Perhaps
most important, be prepared to go both long and short Major Market Sectors - -
long near the bottoms of Interim Takedowns and short near Sector Tops. The
Interventionals are essential to helping identify these tops and
bottoms. In Deepcaster’s view, it will be increasingly difficult
to achieve a net profit for one’s portfolio if one is unwilling and/or
unable to “go short” as well as “long”.
The Blossoming of
the 200% and 300% (and other) leveraged ‘short’ and
‘long’ ETF’s described above provide a superb opportunity
to go short and long with ease, but not, as we explain in recent articles,
without risk.
6.
Be
aware of and Active in the overall Geopolitical Landscape in
order to gain an adequate understanding of how that Landscape might affect
the present and future direction of the Markets. It is essential that one
understand the motivations of the major players in the market and the
resources at their disposal.
For example, a
Major Motivation of the U.S. Federal Reserve and other key Central Banks is
the protection and enhancement of the legitimacy of their Treasury Securities
and Fiat Currencies as Measures and Stores of Value. Therefore, one can
understand that one of their Major Goals will be to attempt continually
to de-legitimize Gold, Silver and the Strategic Commodities, including
especially Crude Oil, as The Ultimate Stores and Measures of Value. With this
in mind, the periodic takedowns of Gold and Silver prices and, since July,
2008, of the Crude Oil price, become understandable. Moreover, such an
insight applied daily to the market can result in a tremendous edge in
understanding market performance, present and future.
7.
Finally,
Hard Assets Partisans have the opportunity to become involved in Political
Action to diminish the power of The Cartel. It is truly outrageous that
the average unsuspecting citizen, and prospective retiree, can and does put
his hard won assets in Tangible Assets and/or Retirement Accounts only to
have those assets effectively de-valued by Cartel Takedowns, U.S. Dollar
Devaluation and other Cartel actions. In order to help prevent this and
similar outrages, we recommend taking three steps:
a)
Become
involved in the movement to Audit and then abolish the private-for-profit U.S.
Federal Reserve as Deepcaster, former Presidential
candidate Rep. Ron Paul, and legendary investor Jim Rogers, all have
advocated.
b)
Join
the Gold AntiTrust Action Committee, which works to
eliminate the manipulation of the Gold and Silver markets (www.gata.org).
c)
Work
to defeat The Cartel ‘End Game.’
Deepcaster has laid out the evidence regarding the Ominous Cartel “End
Game” in “Coping with Power Moves in the Cartel's 'End Game'
“ (04/24/2009) in the ‘Articles by Deepcaster’ cache at
www.deepcaster.com. Clearly The Cartel is sacrificing the U.S. Dollar
to prop up Favored International Financial Institutions and to maintain its
power. But this sacrifice cannot continue forever. See Deepcaster’s
July 2008 Letter in the ‘Latest Letter’ Archives at
www.deepcaster.com.
8.
Last
but not least, acquire Gold and Silver as an Alternative Fiat Currency, but
with timing, and in amounts and forms, which take account of The
Cartel’s ongoing attempts at price suppression.
Conclusion:
If this
aforementioned Strategy is employed effectively, it can result both in an
increasing Core Position in Gold and Silver, and in considerable profit along
the way. Additional insights and details regarding
this Strategy, which are essential to profiting from The Cartel’s
Policies, are laid out in Deepcaster’s article of 3/06/09 entitled
“Investor Advantage: Revisiting The Cartel’s ‘End
Game’ ” in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
Protection and
profit require Proactivity and attention to the Interventionals, Fundamentals
and Technicals, not “Buy and Hold.” We reiterate, “Buying
and Holding” for the long term rarely succeeds anymore as current
market conditions attest.
Indeed, the Key
Point of the Strategy for Protection and Profit is careful attention not only
to the Fundamentals and Technicals but also to the Interventionals.
These Overt and Covert Cartel-generated Interventions have the power
to move markets as those who study the matter can attest.
Thus, the Key
to Profit and Protection is a Strategy: Successful Investors must
become Long-Term Position Traders, with their trading choices informed by the
Interventionals, as well as the Fundamentals and Technicals. Moreover
engaging in the Actions suggested above can help prevent The Cartel’s
obtaining Superpower status, and aid in achieving Wealth Protection and
Profits as well.
Best regards,
Deepcaster
LLC
Deepcaster.com
Wealth
Preservation - Wealth Enhancement
Financial
and Geopolitical Intelligence
Gravitas,
Pietas, Virtus
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