Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Investor Profit and Protection from Two Mega Trends

Stock-Markets / Financial Markets 2012 Mar 30, 2012 - 10:00 AM GMT

By: DeepCaster_LLC


Best Financial Markets Analysis Article“Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens….while the process impoverishes many, it actually enriches some …Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” John Maynard Keynes, The Economic Consequences of the Peace, 1919

Ironic it is to focus on Keynes’ most Profound Insight when much of the Responsibility for the ongoing Currency Debauching which facilitates Today’s Economic and Financial Crises is properly his. Indeed, the Inflation which Implementation of his Economic Policies is causing is increasingly confiscating the Wealth of businesses and citizens. The U.S. Dollar has lost over 95% of its Purchasing Power since The Fed’s founding in 1913 and its purchasing Power continues to be degraded. That Increasing Monetary (and thus ultimately, Price) Inflation is one Primary Megatrend with which all of us, worldwide must increasingly cope. We address that challenge here.

Consider first the Magnitude of the Monetary Inflation. Deutsche Bank reports that as of the end of March, 2012 the combined Balance Sheets of the four largest Central Banks will top $9 Trillion, whereas five years ago those balance sheets totaled “only” $3.5 Trillion.

That means $4.5 Trillion of “Hot” Money pumped into the Economy by those four banks alone in just five years. No wonder Food and Energy Price Inflation is increasing. And no wonder the Fed-led Cartel* is redoubling its efforts to suppress the prices of Gold and Silver, the Ultimate Indicators of Inflation. The Cartel also suppresses Prices of Gold and Silver because the increasingly widespread recognition that they are Money, delegitimizes the Cartel’s Treasury Securities and Fiat Currencies.

Cartel Precious Metals Price Suppression Attacks are becoming more frequent, because the Price Takedowns are becoming ever more difficult to sustain. Beginning with the Price Takedown attack of November 9, 2010 it was 173 days until the next attack (5/1/11), and only 128 days until the next attack (9/6/11), and only 93 days until the next attack (12/8/11) and only 57 days until the next attack (2/3/12), and only 26 days until the Famous February 29, 2012 “Leap Year” attack. Notice that it is becoming harder and harder for the Cartel to sustain its Takedowns.

*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 Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at, 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 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.

No wonder Massive Head and Shoulders Patterns for both Gold and Silver are nearly complete (Deepcaster forecasts Timing and Targets for these impending Moves, and makes Recos aimed at profiting from them in his latest Alerts, and April Letter).

But the CB’s Massive Monetary Inflation helps only the Mega Banks (and them only temporarily) and not most Businesses, Workers, or the Economy, because the resulting price Inflation (Cf. Gasoline and Food) dampens Wages and slows the Economy.

In the U.S, for example, Official Figures indicate 23 Million Unemployed or Underemployed. The Real Number is somewhere North of 30 Million unemployed (about 22%) and the Real Inflation rate is 10.5% per

QE hurts citizens around the World. And we are already seeing it in the Real Numbers.

Consider the U.S. for example: 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

Annual U.S. Consumer Price Inflation reported March 16, 2012
2.87%     /     10.45%

U.S. Unemployment reported March 9, 2012
8.3%     /     22.4%

U.S. GDP Annual Growth/Decline reported February 29, 2012
1.62%        /     -2.70%

U.S. M3 reported March 17, 2012 (Month of February, Y.O.Y.)
No Official Report     /     3.92% (e)

And Official Source Disinformation continues; consider Shadowstats comments on the January 6, 2012 release of U.S. Employment data:

“The reported seasonally-adjusted 200,000 jobs surge in December 2011 payrolls included a false, seasonally-adjusted gain of roughly 42,000 in the “Couriers and Messengers” category.  That gain was an artifact of the seasonal-adjustment process and will remove itself in the January 2012 numbers.

“The problem is that this 42,000 gain is part of a seasonal pattern that fully reverses itself each January…”

             “December Payroll Seasonal-Adjustment Problem”
   , John Williams, 1/6/12

Indeed, Q.E. helps almost no one but the Mega-Banks.

And, an important related consequence of Q.E. creates another Megatrend. As the CB’s pump ever more hot money into the system, Price Inflation takes off. (The U.S. e.g. is already at 10.45%.) Price Inflation Pressures Company Sales and Earnings and lowers or annihilates Workers Discretionary Income.

Businesses lay off workers and/or do not hire and they are pressured to hire lower wage workers. Dean of the Financial Newsletter Writers, Richard Russell, outlines the consequences (which are ultimately the result of QE).

“Among people who have not been able to find a job in over a year (in some cases three years), the situation is distressing and actually very scary. About 34,000 people enter this situation every month. They are willing to do almost any kind of work, but there are no jobs. The fact is that foreign workers are taking their jobs. They are highly educated and willing to work for a fraction of workers in the United States. My view: living standards will have to come down in the US if we are ever to get anywhere near full employment.” Richard Russell, 2/24/12

Indeed, Canada, the United States and most of the Eurozone have become Mass Immigration Magnets. Of course, Mass Immigration is a net (after subtracting taxes immigrants pay) cost to Taxpayers, many businesses and most Workers, since they pick up the Education, Health Care and other Expenses of the New Arrivals (Contra Russell: the majority of Immigrants to the U.S. are low-skilled with an average 4th Grade Education and thus impose a net multi-billion dollar cost on businesses and other Taxpayers.)

As many Investors-citizens of the Eurozone, U.S. and Canada are increasingly realizing neither the Massive Q.E. nor Mass Immigration Mega Trends are in their Interest, but rather in the interests of a few Mega-Bankers, and a few businesses which Privatize Profits from cheap low-skilled labor, but Commonize Costs for their education, health care, etc.

Are these two Mega Trends reversible? Surely. (The non-profit advocates Solution for both of them.) The Eurozone and other Sovereign Debtor countries could adopt and impose an “Icelandic” Solution to the problem of Excessive Sovereign Debt, and would likely already be on the road to recovery, as is Iceland.

And the Citizens of the Eurozone, U.S. and other Debtor Nations could dramatically reduce Immigration (allowing in only a few highly skilled workers) thus reducing the social while Economic Costs and increasing employment opportunities.

However, since both Mega Trends, Mass Q.E. and Mass Immigration are ongoing, until or if they are reversed, they must be addressed. Indeed, Deepcaster provides opportunities to Profit from Mass Q.E. (See Notes below.)

In sum, in order to Profit and Protect, one must stay abreast of these two Key Mega Trends.

Best regards,
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.


© 2005-2019 - 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