Best of the Week
Most Popular
1. Five Charts That Show We Are on the Brink of an Unthinkable Financial Crisis- John_Mauldin
2.Bitcoin Parabolic Mania - Zeal_LLC
3.Bitcoin Doesn’t Exist – 2 - Raul_I_Meijer
4.Best Time / Month of Year to BUY a USED Car is DECEMBER, UK Analysis - Nadeem_Walayat
5.Labour Sheffield City Council Election Panic Could Prompt Suspension of Tree Felling's Private Security - N_Walayat
6.War on Gold Intensifies: It Betrays the Elitists’ Panic and Augurs Their Coming Defeat Part2 - Stewart_Dougherty
7.How High Will Gold Go? - Harry_Dent
8.Bitcoin Doesn’t Exist – Forks and Mad Max - Raul_I_Meijer
9.UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall - GoldCore
10.New EU Rules For Cross-Border Cash, Gold Bullion Movements - GoldCore
Last 7 days
Highly Flexible and Secure Trading Accounts - 24th Jan 18
Smiggle Python Puzzle Review - 24th Jan 18
Government Shutdown Ends – Markets Ignore Looming Debt and Bond Market Threat - 23rd Jan 18
Stock Risks to Watch: Choose Your Bear Market Dashboard - 23rd Jan 18
Worse than Watergate - Release the Memo - Investigate Uranium One - 23rd Jan 18
CAT Stock Bouncing after JPM Upgrade How High and How Long Can This CAT Jump? - 23rd Jan 18
Why Banks Will Be Slammed In The Next Crisis—And That May Be Good News - 23rd Jan 18
Medicare Premiums Are A Shared Pool - Coming Changes That Will Transform Retirement - 23rd Jan 18
Charged Atmosphere of Heavy Police and Security Presence at Sheffield Street Tree Felling Protests - 23rd Jan 18
Pension Crisis And Deficit of £2.6 Billion At Carillion To Impact UK - 22nd Jan 18
Two Factors for Gold That You Don’t Want to Miss - 22nd Jan 18
Why You Must Own Silver in 2018 - 22nd Jan 18
This Could Be The Hottest Mining Stock Of 2018 - 22nd Jan 18
Stock Index Trend Trade Setups for the SP500 & NASDAQ - 22nd Jan 18
Stock Market Deceleration / Distribution - 22nd Jan 18
US Markets vs Govt Shutdown: Stock Markets at all time highs - 22nd Jan 18
Land Rover Discovery Sport - 1 Month Driving Test Review - 22nd Jan 18
Why should you use high-quality YouTube to mp3 converter? - 22nd Jan 18
Silver As Strategic Metal: Why Its Price Will Soar - 21st Jan 18
Stocks, Gold and Interest Rates Three Amigos Ride On - 21st Jan 18
Why Sometimes, "Beating the S&P 500" Isn't Good Enough - 21st Jan 18
Bunnies and Geckos of Sheffield Street Tree Fellings Protests Explained - 21st Jan 18
Jim Rickards: Next Financial Panic Will Be the Biggest of All, with Only One Place to Turn… - 20th Jan 18
Macro Trend Changes for Gold in 2018 and Beyond - Empire Club of Canada - 20th Jan 18
Top 5 Trader Information Sources for Timely, Successful Investing - 20th Jan 18
Bond Market Bear Creating Gold Bull Market - 19th Jan 18
Gold Stocks GDX $25 Breakout on Earnings - 19th Jan 18
SPX is Higher But No Breakout - 19th Jan 18
Game Changer for Bitcoin - 19th Jan 18
Upside Risk for Gold in 2018 - 19th Jan 18
Money Minute - A 60-second snapshot of the UK Economy - 19th Jan 18
Discovery Sport Real MPG Fuel Economy Vs Land Rover 53.3 MPG Sales Pitch - 19th Jan 18
For Americans Buying Gold and Silver: Still a Big U.S. Pricing Advantage - 19th Jan 18
5 Maps And Charts That Predict Geopolitical Trends In 2018 - 19th Jan 18
North Korean Quagmire: Part 2. Bombing, Nuclear Threats, and Resolution - 19th Jan 18
Complete Guide On Forex Trading Market - 19th Jan 18
Bitcoin Crash Sees Flight To Physical Gold Coins and Bars - 18th Jan 18
The Interest Rates Are What Matter In This Market - 18th Jan 18
Crude Oil Sweat, Blood and Tears - 18th Jan 18
Land Rover Discovery Sport - Week 3 HSE Black Test Review - 18th Jan 18
The North Korea Quagmire: Part 1, A Contest of Colonialism and Communism - 18th Jan 18
Understand Currency Trade and Make Plenty of Money - 18th Jan 18
Bitcoin Price Crash Below $10,000. What's Next? We have answers… - 18th Jan 18
How to Trade Gold During Second Half of January, Daily Cycle Prediction - 18th Jan 18
More U.S. States Are Knocking Down Gold & Silver Barriers - 18th Jan 18
5 Economic Predictions for 2018 - 18th Jan 18
Land Rover Discovery Sport - What You Need to Know Before Buying - Owning Week 2 - 17th Jan 18
Bitcoin and Stock Prices, Both Symptoms of Speculative Extremes! - 17th Jan 18
So That’s What Stock Market Volatility Looks Like - 17th Jan 18
Tips On Choosing the Right Forex Dealer - 17th Jan 18
Crude Oil is Starting 2018 Strong but there's Undeniable Risk to the Downside - 16th Jan 18
SPX, NDX, INDU and RUT Stock Indices all at Resistance Levels - 16th Jan 18
Silver Prices To Surge – JP Morgan Has Acquired A “Massive Quantity of Physical Silver” - 16th Jan 18
Carillion Bankruptcy and the PFI Sector Spiraling Costs Crisis, Amey, G4S, Balfour Beatty, Serco.... - 16th Jan 18
Artificial Intelligence - Extermination of Humanity - 16th Jan 18
Carillion Goes Bust, as Government Refuses to Bailout PFI Contractors Debt and Pensions Liabilities - 15th Jan 18
What Really Happens in Iran?  - 15th Jan 18
Stock Market Near an Intermediate Top? - 15th Jan 18
The Key Economic Indicator You Should Watch in 2018 - 15th Jan 18
London Property Market Crash Looms As Prices Drop To 2 1/2 Year Low - 15th Jan 18
Some Fascinating Stock Market Fibonacci Relationships... - 15th Jan 18

Market Oracle FREE Newsletter

6 Critical Money Making Rules

Essential Investor Preparations for The Big Crisis

Stock-Markets / Financial Markets 2012 Feb 03, 2012 - 10:12 AM GMT

By: DeepCaster_LLC

Stock-Markets

Best Financial Markets Analysis ArticleThe U.S. economic and systemic-solvency crises of the last five years continue to deteriorate.  Yet they remain just the precursors to the coming Great Collapse: a hyperinflationary great depression.  The unfolding circumstance will encompass a complete loss in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system, as we know it; and a likely realignment of the U.S. political environment.  Outside timing on the hyperinflation remains 2014, but events of the last year have accelerated the movement towards this ultimate dollar catastrophe.  Following Mr. Bernanke’s extraordinary efforts to debase the U.S. currency in late-2010, the dollar had lost its traditional safe-haven status by early-2011.  Whatever global confidence had remained behind the U.S dollar was lost in July and August.  That was in response to the lack of political will—shown by those who control the White House and Congress—to address the long-range insolvency of the U.S. government, and as a result of the later credit-rating downgrade to U.S. Treasury debt.


The economy has underperformed and likely will continue to underperform consensus forecasts by a significant margin.  In turn, weaker-than-expected economic growth will mean significantly worse-than-expected federal budget deficits, Treasury funding needs and banking-system solvency conditions. 

With the U.S. election just nine months off, political pressures will mount to favor fiscal stimulus measures instead of restraint. …Consistent with the precedent set in 2008, the Fed, and likely the Treasury, also will remain in place to do whatever is needed, at whatever cost, to prevent systemic collapse in the United States.  All of these actions, though, have costs in terms of higher domestic inflation and intensified dollar debasement.

The U.S. dollar remains highly vulnerable to massive, panicked selling, at any time, with little or no warning.  The next round of Federal Reserve or U.S. government easing or stimulus could be the proximal trigger for such a currency panic and/or for strong efforts to strip the U.S. currency of its global reserve currency status.

As the advance squalls from this great financial tempest come ashore, the government could be expected to launch a variety of efforts at forestalling the hyperinflation’s landfall, but such efforts will buy little time…”

 

 

John Williams, shadowstats.com, “Hyperinflation 2012”, 1/25/12

Ominously, just last December 2011, Ostensible U.S. Ally Japan, and China, agreed to a currency Swap Arrangement. This move further eroded the status of the U.S. Dollar as the World’s Reserve Currency.

More importantly it underlines the Fundamental Flaw not only in the U.S. Dollar, but also in the world’s other major Currencies – they are Pure Fiat Currencies… Keynesian Spawn.

Having no intrinsic value, Fiat Currencies facilitate a variety of destabilizing phenomena. One is that their Purchasing Power is easy to debase whether by Avaricious Mega-Bankers or by Politicians who want to reward their constituents, but not have them pay for their borrowed benefits currently. A typical result is The Great Currency Purchasing Power Degradation we are now seeing.

The U.S. Dollar has lost over 95% of its Purchasing Power since the Private for-Profit Fed was established in 1913 and the amount of Interest Taxpayers have paid the Mega-Bank Owners of the Fed since then is in the $Trillions.

Earlier this week an informative and widely read newsletter pompously intoned: “Washington has decided to kill the dollar.” We and a few others have been saying so for years. (See e.g.,”Dire Economic Forecast Reveals Profit Opportunities & Cartel ‘End Game’ Threat” (6/20/08) in the Articles by Deepcaster at deepcaster.com.

The U.S. now continues on such a path (with the Euro following along) and it has already led it to the threshold of Hyperinflation with 10.57% per year Real Inflation per shadowstats.com, (Note 1) Official Figures are Bogus.

Shadowstats Proprietor, Economist, and Statistician Extraordinaire John Williams tells it like it is (Rara Avis!).

The U.S. is at the threshold of a Hyperinflationary Great Depression.

Consequences and Essential Preparations:

“The effects of QE2 included debasing the U.S. dollar.  As the dollar weakened against other currencies, oil prices soared, and that spiked U.S. consumer inflation.  Although the Fed likes to tout “core” inflation, net of food and energy costs, the oil inflation also has begun to spread into the broader economy.

 

“The economic and systemic crises, triggered by the collapse of debt excesses that had been encouraged actively by the Greenspan Federal Reserve, have been centered on the U.S. financial system. … then-Federal Reserve Chairman Alan Greenspan played along with the political and banking systems.  He made policy decisions to steal economic activity from the future, fueling economic growth of the last decade largely through debt expansion.

“The Greenspan Fed pushed for ever-greater systemic leverage… Also complicit in this broad malfeasance was the U.S. government, including both major political parties in successive Administrations and Congresses.

“As with consumers, though, the federal government could not make ends meet.  Driven by self-serving politics aimed at appeasing that portion of the electorate that could be kept docile through ever-expanding government programs and spending, political Washington became dependent on ever-expanding federal deficit spending, unfunded obligations and debt.

“While Wall Street may hail any artificial propping it can get from the Fed’s efforts to support the markets, more than “moderate” related declines in the U.S. dollar’s exchange rate destroy any illusions of stock gains and savage the U.S. consumers’ dollar purchasing power.  A declining dollar can turn U.S. stock profits into losses for those living outside the dollar-denominated world, as funds are converted back to the strengthening currency domestic to the investor.  Inflation driven by dollar weakness will do the same for those in a U.S. dollar-denominated environment, where, eventually, inflation can turn U.S. stock profits into real (inflation-adjusted) losses.”

John Williams at shadowstats.com, “Hyperinflation 2012”, 1/25/12

Essential Preparations

The U.S. Dollar’s Ultimate Crash will likely be Rapid, and because of its (then former) Reserve Currency Status will be felt around the world. Williams puts the no-later-than date at 2014.

Only very few Assets will be Relatively Immune to its dramatically Negative Effects.

But before then there will be as he says, “Advance Squalls” coming ashore, (the 2008-2009 Crash was one and MF Global bankruptcy another) so it is important to prepare now.

Just consider that the Fed-led Cartel ‘End Game’ Plan is set. (See Note 4 re Cartel) All that Prior and Ongoing Cartel Money and Credit Creation will likely lead to Hyperinflation followed by Collapse and a Depression (Think Weimar Republic or Zimbabwe).

Bob Chapman describes one likely course of events.

Here we have QE 3 in the works as we predicted months ago. We said it would consist of the Fed buying the banks garbage so they have cash to follow the Fed’s orders. Those orders will be to buy Treasuries, Agencies and to make loans to small and medium companies. Before the Fed bought $1.4 trillion of this paper, mostly MBS and CDO’s. We never found out what the Fed paid for previous purchases and we won’t this time either. This is another gift the Fed, or should we say taxpayer gifts to the banks. What we are seeing in Europe and again shortly here is another stuffing of the system with money and credit. The Fed is headed down the road of no return and they know exactly what they are doing. That is playing money and credit creation to the bitter end. Historically no central bank has had the power to do this. If played out to the end we have to expect hyperinflationary depression, which will end in a deflationary depressionary collapse. This will destroy the value of the US dollar and its purchasing power. The entire system will probably collapse to a great extent including perhaps 60% of commerce, 40% to 50% unemployment, and the end of the financial system and resorting to bartering, the social support system and government. They will all collapse, so you had better prepare for it. All this will be expedited if Ron Paul is not elected our next president. If he were to be elected he could short-circuit many programs and policies that are destroying our nation.

 

Bob Chapman, The International Forecaster

theinternationalforecaster.com, February 1, 2012

 

Recommendations and Observations

  1. Buy Physical Gold and Silver to be held in Personal (not Bank Vaults) Possession, and Mining Shares with a Caveat.
  2. The Caveat re Mining Shares is that they are “Paper”/Digital Securities. Thus because a Dollar Crash and the “squalls” leading up to it will affect all Paper/Digital Money flows, invest in solid Miners Now, but be prepared to continue to re-evaluate the “Money Flows Risk” before The Great Dollar Crash.
  3. That Impending Great Crash will lead to numerous Counter Party Failures. It is thus essential to be out of Assets with Great Counter-Party Failure Risk prior to The Great Crash.
  4. But Prior to that Crash, it is reasonable to Incur Counter Party Risk, provided one plans to be “out” in time (a challenging task!).

In making this Critical Timing Determination to evaluate the Financial and Economic Squalls as they come ashore. One of Deepcaster’s Ongoing Primary Goals is to help our readers make such Timing Judgments. Thus we include Forecasts for most Major Sectors in each week’s letter or Alert. 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.

  1. Given the aforementioned Real Inflation Reality, it is essential that one Aim for Total Return (Gains plus Yield) in excess of that (10.57% Real Inflation in the U.S., e.g.). Deepcaster has designed its High Yield Portfolio with that Aim. Those selections had recent Yields of 18.5%, 8.6%, 10.6%, 26%, 6.7%, 8%, 10.6%, 10% and 15.6% when added to the Portfolio. (See Note 2)
  2. Become familiar with the ongoing Cartel ‘End Game’ which we have described in several articles including “Gold-Freedom versus The Cartel ‘End-Game’ & A Strategy for Surmounting It (09/23/10)” and “Surmounting The Armageddon Scenario & Cartel ‘End Game’(2/26/10)” in “Articles by Deepcaster” Cache at deepcaster.com.
  3. As well as investing in Precious Metals, Invest in Tangible Assets in relatively Inelastic Demand. We specifically, for example, have recommended Specific Agricultural investments in recent Alerts. (See Note 3)
  4. Consider seriously getting out of variable-rate debt and into fixed rate debt.
  5. Get regular Input from Independent News Sources. Several Financial and other Mainstream Media periodically Manufacture or Censor or Spin Real News.
  6. Prepare to Barter. Silver coins and Canned Food are useful barter items.

And Bill Gross properly blames The Fed for

“We are witnessing the death of abundance and the borning of austerity, for what may be a long long time. Monetary and Fiscal Excesses carry with them explicit costs…significant costs that may be ahead for a global economy and financial marketplace still functioning under the assumption that cheap and abundant central bank credit is always a positive dynamic.”

 

Bill Gross, PIMCO 2/1/12

True, but perhaps the Understatement of the Year.

By DEEPCASTER LLC

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

© 2012 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

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

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

6 Critical Money Making Rules