Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelertoing Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Essentials for Investor Wealth Acquisition Acceleration

Stock-Markets / Financial Markets 2011 Jul 30, 2011 - 07:28 AM GMT

By: DeepCaster_LLC

Stock-Markets

Best Financial Markets Analysis Article“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, $3.8 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 basis.”

“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 (and nations):

  1. Using these fraudulent bond debts to attach a legal claim on the large, national gold-hoards which these nations claim to still possess
  2. Attaching “loss guarantees” to the bad-debts of the Euro debt-sinners
  3. Ramming through a full economic integration of all these Euro-zone nations

I will address these economic “crimes against humanity” in order…”

“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 be achieved.

First, Key Facts, then, with that factual basis, Wealth Acquisition Acceleration Guidelines.

  1. 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).
  2. 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 Statistics.

    **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 July 8, 2011
9.2%                             22.7%

U.S. GDP Annual Growth/Decline reported June 24, 2011
2.33%                                    -2.60%

U.S. M3 reported July 16, 2011 (Month of June, Y.O.Y.)
No Official Report            2.29%

  1. Ongoing Fed-led Excessive Money and Debt Creation is the Primary Cause of recent Price Inflation in Energy Food, and other Essential Commodities.
  2. 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%.
  3. 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 unlikely.
  4. 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.”

    McHugh’s Weekend Market Newsletter, 7/22/11

  5. 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.
  6. 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.
  7. Economic Recovery in the Developed World any time soon is not possible unless and until the Middle Class Recovers.
  8. 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.
  9. The Key to Wealth Protection and Wealth Acquisition Acceleration is found in the following Observation and conclusion.

    “During the last decade of Greatly Increased Money and Debt Creation, the price of Gold soared by over 500% and Silver by over 1000%.”

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 essential.

*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.

Gold

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 recommendations***.

Silver

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 years.

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.

Food

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.

Strategy Guidelines

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:

  1. Buying on Dips, coupled with a Willingness to Tolerate Great Price Volatility
  2. 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
  3. 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 interim highs
  4. that a portion of One’s Holdings be in a Dividend Paying Precious Metals Fund such as one which we have Recommended, and
  5. 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 Markets.

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 Buying Opportunities.

Considered together the foregoing Facts and Guidelines provide the Essentials for Wealth Acquisition Acceleration.

Best regards,

By DEEPCASTER LLC

www.deepcaster.com
DEEPCASTER FORTRESS ASSETS LETTER
DEEPCASTER HIGH POTENTIAL SPECULATOR
Wealth Preservation         Wealth Enhancement

© 2011 Copyright DeepCaster LLC - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

DEEPCASTER LLC Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Adrian Zelaia
01 Aug 11, 07:53
FED AUDIT

Dear Sirs:

I am writing to you from EKAI Center, an Spanish think tank specialized on economic policy and, very specifically, in monetary and banking policy.

The opinions of Mr. B. Sanders on the GAO Report about the Federal Reserve System are being quite disseminated in Internet. Very specially, related to the 16.1 trillion figure.

I don´t know if you can help us clarifying it.

We have found in the GAO report, pages 131 to 133, two different tables:

In Table 8 we find the mentioned data of 16 trillions of “total loans”, but, as the report says, it is not “time adjusted”. It may be more related to the legal or political consequences of the different decisions taken to approve new loan operations.

In Table 9 we have the same data but “term-adjusted” and here the “total loans” are not 16 trillions, but 1.1 trillion. If we are correct, it is the medium borrowed amount during the period. I understand that, from an economic point of view, this should be the really relevant data, as a measure of the real economic risk and effort made by the US government and FED. Is it correct? I understand that Table 9 measures the medium effort made by US public institutions. So, shouldn´t it be the data to be used in the media? Please, correct me if I am wrong.

Thank you very much,

Adrian Zelaia

EKAI Center

Executive President

www.ekaicenter.eu


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules