“…Greg Page, chief executive of global
grains trading giant Cargill Inc, joined a chorus
of critics of biofuels by urging the U.S. government to temporarily curb its
quotas to produce corn-based ethanol fuel.
“Page said on CNBC that the U.S. biofuel
mandate ‘needs to be addressed’ through existing policy tools.
Otherwise, the spike in U.S. corn and soybean prices to record highs will
‘ration’ demand in ways that will hurt food production too much.
“‘If all that is only on livestock or
food consumers, it really makes the burden disproportionate. What we see
are 3 or 4 percent declines in supply lead to 40 to 50 percent increases in
prices, and I think the mandates are what drives
that,’ he said.
“In 2011, almost 40 percent of the giant U.S.
corn crop went into making ethanol, and the United States still exported more
than half of all corn shipments worldwide….
“On Monday, U.S. livestock groups appealed to
the Environmental Protection Agency (EPA) to curb or suspend the mandate,
warning against the ruinous impact of soaring feed costs. Corn and soybean
meal make up basic animal feedstuffs….”
“Drought deepens worries about food supplies,
reutersreprints.com , 8/1/2012
Consider the Grain Giant Cargill’s CEO’s extraordinary
statement recently that the U.S. Government Mandate that Corn be used to make
Ethanol for fuel, could lead to a 40% to 50% rise in food prices!
Though the story was reported in the MainStream
Media (MSM) it has not been followed up on, yet should have been because a
potential 40% to 50% rise in food prices is highly significant. Typical. Much
of the news important to investors is de-emphasized, spun into inaccuracy, or
blacked out entirely by the MSM.
So we summarize here a few items crucially important to Investors (and
Citizens-in-general) that the MSM obviously does not want us to see
(otherwise they would report on them), or, if reported at all, does not want
us to focus on. Consider the following de-emphasized, spun, or blacked-out
- Regarding Ethanol, when all energy inputs to its
production are considered, it actually takes more Energy to produce than one
gets out of it when it is burned up as fuel. (See studies of Prof. David
Pimentel, et al, Cornell University). In fact, Ethanol is an Energy Waster
and Food Consumer.
- Those who make the (Keynesian-based) Claim that
facilitating the increase in Debt (whether via Q.E., L.T.R.O. Operations or
otherwise) boosts the economy, should read the excellent studies by noted
Economists Reinhart, Reinhart and Rogoff, which
have not been widely reported by a MSM complicitous
with Wall Street in encouraging more QE.
They examined 26 advanced economies (over the period from 1800) with
Public Debt levels above 90% of GDP. (The U.S.A. is nearly 100%,
Japan’s over 200% and certain Eurozone countries over 100%).
They found these hyperindebted (i.e., those
with 100%-plus Debt to GDP ratios) Economies had 1.2% lower GDP growth
rates than they did during low debt periods.
So much for the Argument that “Stimulus” (whether via QE
or otherwise) increases economic growth, and health. Indeed, such stimulus
hurts Savers and Investors alike by depreciating the Purchasing Power of
their Fiat Currencies. The MSM should focus on the fact that adding more Debt
to already-unpayable Debt is quite injurious to
- Corporate Earnings for Q2, 2012 in the aggregate,
reflected a drop year over year for the first time since 2009. The Economy is
not recovering, as the MSM would have us believe.
- The United Kingdom and six Eurozone countries are
already in recession.
- China’s slowdown is much more severe than
their officially massaged numbers indicate.
- If one looks at the Real Numbers, the U.S. has never
exited from Recession.
Consider Housing, Jobs, Unemployment Rates, Inflation and Real GDP per
Shadowstats.com, which calculates the numbers as they were calculated in the
1980s before Data Politicization began in earnest.
“July reporting for the major,
government-compiled economic series has been mixed versus market
expectations, but the general outlook remains for renewed downturn continuing
to evolve, out of the protracted period of stagnation in the
post-economic-collapse environment…. Reversing the general patterns of
May and June reporting, payroll employment, retail sales and the trade
deficit were better than expected against consensus expectations, production
was about as expected, while unemployment and housing starts were worse than
consensus. Still, as discussed in each related Commentary, none of those reported
monthly changes were meaningful, in the context of prior-period revisions
and/or serious seasonal-adjustment problems….
“Accordingly, real-world U.S. economic
activity has not recovered since the collapse, and no near-term economic
recovery appears to be in the offing….
“I view the (GDP) series as the most worthless
of official government reports, in terms of providing a meaningful indication
of actual business activity. One almost has to be in a real-world depression
these days in order to see a downside blip in the reporting. While there are
a number of issues with the largely theoretical structure of the GDP, the most
egregious problem is the use of too-low inflation in deflating the series.
Such overstates inflation-adjusted GDP growth and has created the illusion of
an economic recovery, a full recovery that curiously has not been seen in any
other major economic series….
“…The pattern of ongoing stagnation in
housing construction activity continued in July 2012, with a
statistically-insignificant 1.1% headline monthly decline in
starts….For the last 44 months, the pattern of housing starts generally
has remained one of stagnation at an historically low-level plateau of
“The long-term fiscal solvency issues of the
United States—where GAAP-based accounting shows
annual deficits running in the $5 trillion range—are not being addressed,
and the politicians currently running the government lack the political will
to address those issues. That circumstance initially suggested a
hyperinflation crisis by the end of this decade, but federal government and
Federal Reserve actions—in response to the systemic-solvency crisis of
2008—accelerated the process, indicating a hyperinflation problem by no
later than the end of 2014. The continuing economic downturn is intensifying
the fiscal- and systemic-solvency problems, and public awareness of this
should grow rapidly in the months ahead….
“…A dollar-selling crisis, however,
could begin at any time, triggered by any number of economic,
sovereign-solvency or political issues.”
July Housing Starts, Economic Review, John Williams,
So much for claims of an Economic Recovery widely publicized (i.e.
strongly promoted) by the MSM.
--Just consider the Chart comparing Shadowstats
Real Numbers with the Bogus Official Ones.
*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 August 15, 2012
1.41% / 9.02%
U.S. Unemployment reported August 3, 2012
8.3% / 22.9%
U.S. GDP Annual Growth/Decline reported July 27, 2012
2.21% / -2.15%
U.S. M3 reported August 4, 2012 (Month of July, Y.O.Y.)
No Official Report / 2.86% e
Note that Real U.S. GDP “Growth” is a Negative Number!
--Regarding Real Inflation, the U.S.A. (and likely other Major
Nations, if Accurate Data were available) is already at the Hyperinflationary
Threshold of 9%.
Intuitively we all know this because we all see this inflation in
Food, Energy and other Prices. (And N.B., recall that Food Price Inflation
started well before the USA’s Summer Drought. It was the spark which
set off the “Arab Spring.”)
Thus it is essential for Investors to Understand that if they want
Genuine Gain, their Total Return (Gain plus Yield) must exceed Real Inflation
(which is why Deepcaster’s High Yield
Portfolio is aimed at doing just that – see Note 1 below)
But there is a Way Forward to Economic Recovery which now apparently
even the IMF is (albeit with the Predictably Qualified MSM Spin) endorsing on
which the MSM has continued to impose a blackout, while instead offering a
“Spun Version”. This “Spun Version” – The
Icelandic Solution (for full discussion see recent Deepcaster
Articles in ‘Articles by Deepcaster’ at
www.deepcaster.com). Consider one most interesting perspective on “The
For approximately three years; our governments, the
banking cabal, and the Corporate Media have assured us that they knew the
appropriate approach for fixing the economies that they had previously
crippled with their own mismanagement. We were told that the key was to stomp
on the Little People with “austerity” in order to continue making
full interest payments to the Bond Parasites – at any/all costs.
Following three years of this continuous,
uninterrupted failure; Greece has already defaulted on 75% of its debts, and
its economy is totally destroyed. The UK, Spain, and Italy are all plummeting
downward in suicide-spirals, where the more austerity these sadistic
governments inflict upon their own people the worse their debt/deficit problems get. Ireland and
Portugal are nearly in the same position.
Now in what may be the greatest economic “mea
culpa” in history, we have the media admitting that this
government/banking/propaganda-machine Troika has been wrong all along.
They have been forced to acknowledge that Iceland’s approach to
economic triage was the correct approach right from the beginning.
What was Iceland’s approach? To do the
exact opposite of everything the bankers running our own economies told
us to do. The bankers (naturally) told us that we needed to bail-out the
…Big Banks – at taxpayer expense…
The bankers told us … the Bond Parasites
(should get) paid at 100 cents on the dollar. Iceland told the Bond
Parasites they would get what was left over…
The bankers told us that our governments
“could no longer afford” the same education, health-care and
pension systems which our parents had taken for granted. Iceland told the
bankers that what the country “could no longer afford” was to
continue to be blood-sucked…
In typical fashion, the moment that the Corporate
Media is forced to admit that it has been serially misinforming us for the
past several years; the Revisionists are immediately deployed to rewrite history:
…the island’s approach to its rescue led
to a “surprisingly” strong recovery, the International
Monetary Fund’s mission chief to the country said….
As I detailed in a four-part series one year ago,
the campaign of “economic rape” perpetrated against the
governments of Europe over the past 2 ½ years (in particular) has been
expressly designed to take away “the Iceland option” for Europe’s
One of the reasons for Iceland being able to escape
the choke-hold of the Western banking cabal is that it’s
economy (and its people) still retained enough residual prosperity to tough
Instead of the Truth: that from Day 1
Iceland’s approach was the only possible strategy which could have
succeeded, while our own governments chose a strategy intended to fail;
we get the Big Lie (i.e. Ed.). Our Traitor Governments were acting honestly
and honorably; and Iceland’s success and our failure was yet another
“surprise which no one could have predicted.”
We saw precisely the same Revisionism following the
Crash of ’08 itself, where the mainstream media trotted out all their
expert-shills to tell us they had been “surprised” by this
economic event; while those within the precious metals sector had been
predicting precisely such a cataclysm, in ever more-assertive terms, for
“Iceland Was Right, We Were Wrong: The IMF”
Jeff Nielson, www.lemetropolecafe.com, 08/16/2012
And, speaking of Precious Metals, perhaps the Biggest MSM News
Blackout of all is the ongoing (for years) suppression of Precious Metals
prices by the private for-profit Fed as the leader of an International
Banking Cartel. (See Note 2.)
Finally, regarding the MSM claims that TARP would (and has) benefit(ed) the American Economy and the Taxpayers who funded it,
consider the following recent USA Today finding:
“Banks that received federal assistance during
the financial crisis reduced lending more aggressively and gave bigger pay paises to employees than institutions that didn’t
get aid, a USA TODAY/American University review found.
“The amount of loans outstanding to businesses
and individuals fell 9.1% for the 12 months ending Sept. 30, 2009, at banks
that participated in TARP compared with a 6.2% drop at banks that
USA Today, 07/22/2012
The foregoing fact is not widely reported either. Since the recent
announcement that no criminal charges will be brought in the Goldman Sachs
matter or the MF Global matter was greeted by no perceptible outrage that
was reported by the MSM, one wonders how much heat the Big MSM will keep
focused on the LIBOR rigging scandal. The LIBOR rate affects the cost of
Trillions of Dollars of Credit around the World, and so should be kept in
intense focus by the MSM.
Unfortunately, anticipated that the LIBOR rigging will be yet another
example of News Spinning and Suppression by the MSM, which along with the
Precious Metals Price Suppression (Note 2 below) and others,
will eventually be blacklisted from news reports. Thus it is all the more
important for Investors to track the “Interventionals”
and Independent Information sources, as Deepcaster
Do we see “All the News that’s Fit to Print”? Not
August 17, 2012
Note 1: There
are Magnificent Opportunities in the Ongoing Crises of Debt Saturation,
Rising Unemployment, negative Real GDP growth, over 9.0% Real U.S. Inflation
(per Shadowstats.com) and prospective Sovereign and other Defaults.
One Sector full of Opportunities is the High-Yield Sector. Deepcaster’s High Yield Portfolio is aimed at
generating Total Return (Gain + Yield) well in excess of Real Consumer Price
Inflation (9% per year in the U.S. per Shadowstats.com).
For those who find The High Inflation Reality hard to believe,
consider Adrian Douglas’ point:
“There are frequent claims that the U.S.
economy has entered a period of “deflation.”
These claims are totally unfounded and are
false. Deflation can only be a persistent state of general price decline. In
fact, in examining price trends, the U.S. is experiencing shocking price
increases of over 15% per annum. To illustrate this, (consider) …the Continuous
Commodities Index, CCI over the past ten years.”
“Deflation – Nowhere to be
Seen,” Adrian Douglas, Market Force Analysis, 7/7/12
Thus Monetary and Credit Inflation (courtesy
of the Central Banks) continues to drive Price Inflation of essential Real
Assets. While this is the most important factor determining the Crude Price
(and the price of other Real Assets) there are four other factors which help
determine Crude Price (and Energy sector) moves, which we discussed in our
To see which Asset is about to explode upward,
as well as the Factors essential for successful Energy Investments, and our
latest Forecasts, read our recent Alert “Impending Launch & Crude
Secrets; Forecasts: Gold, Silver, Crude Oil; Equities, U.S. Dollar/Euro, U.S.
T-Notes, T- Bonds, & Interest Rates,” recently posted in
‘Alerts Cache’ at www.deepcaster.com.
To consider our High-Yield Stocks Portfolio with Recent Yields of 18.5%,
8.6%, 10.6%, 26%, 6.7%, 8%, 10.6%, 14.9%, 10% and 15.6% when added to the
portfolio; go to www.deepcaster.com and click on ‘High Yield
Note 2: *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
DEEPCASTER FORTRESS ASSETS LETTER
DEEPCASTER HIGH POTENTIAL SPECULATOR
DEEPCASTER HIGH YIELD PORTFOLIO
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