Best of the Week
Most Popular
1.UK General Election BBC Exit Polls Forecast Accuracy - Nadeem_Walayat
2.UK General Election 2017 Seats Final Forecast, Labour, Conservative Lib-Dem, SNP - Nadeem_Walayat
3.UK General Election 2017 Forecast: Conservative 358, Labour 212 Seats - Nadeem_Walayat
4.Theresa May to Resign, Fatal Error Was to Believe Worthless Opinion Polls! - Nadeem_Walayat
5.UK House Prices Forecast General Election 2017 Conservative Seats Result - Nadeem_Walayat
6.The Stock Market Crash of 2017 That Never Was But Could it Still Come to Pass? - Sol_Palha
7.[TRADE ALERT] Write This Gold Stock Ticker Down Now - WallStreetNation
8.UK General Election Results Map 2017 vs 2015 vs Opinion Polls - Nadeem_Walayat
9.Orphaned Poisoned Waters,Severe Chronic Water Shortage Imminent - Richard_Mills
10.How The Smart Money Is Playing The Lithium Boom - OilPrice_Com
Last 7 days
Gold and Silver Ongoing Consolidation May End Soon - 24th Jun 17
Dollar May Become “Local Currency of the U.S.” Only - 24th Jun 17
Sheffield Great Flood of 2007, 10 Years On - Unique Timeline of What Happened - 24th Jun 17
US Stock Market Correction Could be Underway - 24th Jun 17
Proof That This Economic Recovery Narrative is False - 24th Jun 17
Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - 24th Jun 17
Gold Summer Doldrums - 23rd Jun 17
Hedgers Net Short the Euro, US Market Rotates; 2 Horsemen Set to Ride? - 23rd Jun 17
Nether Edge By Election Result: Labour Win Sheffield City Council Seat by 132 Votes - 23rd Jun 17
Grenfell Fire: 600 of 4000 Tower Blocks Ticking Time Bomb Death Traps! - 22nd Jun 17
Car Sales About To Go Over The Cliff - 22nd Jun 17
LOG 0.786 support in CRUDE OIL and COCOA - 22nd Jun 17
More Stock Market Fluctuations Along New Record Highs - 22nd Jun 17
Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - 22nd Jun 17
Green Party Could Control Sheffield City Council Balance of Power Local Election 2018 - 22nd Jun 17
Ratio Combo Charts : Hidden Clues to the Gold Market Puzzle - 22nd Jun 17
Steem Hard Forks & Now People Are Making Even More Money On Blockchain Steemit - 22nd Jun 17
4 Steps for Comparing Binary Options Providers - 22nd Jun 17
Nether Edge & Sharrow By-Election, Will Labour Lose Safe Council Seat, Sheffield? - 21st Jun 17
Stock Market SPX Making New Lows - 21st Jun 17
Your Future Wealth Depends on what You Decide to Keep and Invest in Now - 21st Jun 17
Either Bitcoin Will Fail OR Bitcoin Is A Government Invention Meant To Enslave... - 21st Jun 17
Strength in Gold and Silver Mining Stocks and Its Implications - 21st Jun 17
Inflation is No Longer in Stealth Mode - 21st Jun 17
CRUDE OIL UPDATE- “0.30 risk is cheap for changing implication!” - 20th Jun 17
Crude Oil Verifies Price Breakdown – Or Is It Something More? - 20th Jun 17
Trump Backs ISIS As He Pushes US Onto Brink of World War III With Russia - 20th Jun 17
Most Popular Auto Trading Tools for trading with Stock Markets - 20th Jun 17
GDXJ Gold Stocks Massacre: The Aftermath - 20th Jun 17
Why Walkers Crisps Pay Packet Promotion is RUBBISH! - 20th Jun 17
7 Signs You Should Add Gold To Your Portfolio Now - 19th Jun 17
US Bonds and Related Market Indicators - 19th Jun 17
Wireless Wars: The Billion Dollar Tech Boom No One Is Talking About - 19th Jun 17
Amey Playing Cat and Mouse Game with Sheffield Residents and Tree Campaigners - 19th Jun 17
Positive Stock Market Expectations, But Will Uptrend Continue? - 19th Jun 17
Gold Proprietary Cycle Indicator Remains Down - 19th Jun 17

Market Oracle FREE Newsletter

The MRI 3D Report

Investor Inflation Protection, and Profit, from Political Numbers

Economics / Inflation Dec 22, 2012 - 02:43 PM GMT

By: DeepCaster_LLC

Economics

As the miscreants in Washington negotiate solutions to the “fiscal-cliff” and debt-ceiling crises, trial balloons have been floated that agreement has been reached to use a new CPI measure—the C-CPI-U, which tends to understate inflation even more than the CPI-U—as way of deceptively reducing cost-of-living adjustments to Social Security, etc.  Not too surprisingly, public reaction appears to be turning increasingly negative, as the concept gets broader exposure in the popular press.


Public Furor Mounts Over Proposed Use of the C-CPI-U to Short-Change Social Security Recipients on Their Cost of Living Adjustments.  The chain-weighted CPI-U (C-CPI-U) is the fully substitution-based inflation series that is under serious consideration by those in Congress and the White House as a replacement for the CPI, with the goal of cutting Social Security cost-of-living adjustments (COLA) by stealth.  A fully-substitution-based inflation index used in COLA calculations would reflect lower inflation than would the CPI-U or CPI-W (used for Social Security), resulting in fraudulently- and artificially-reduced cost-of-living adjustments to social programs, retirement funds, etc.
If the people controlling the U.S. government were honest, they simply would tell the COLA recipients that payments were being cut as part of the effort to balance the budget.  Yet, no one in Washington has the political courage to suggest such a thing, openly, hence the regular deception that so often surfaces in the headline budget bargaining.  …
Reducing COLA by artificially reducing CPI reporting is not new.  Had the politicians not pursued similar policies successfully in the 1980s and 1990s, Social Security payments would be more than double current levels… annual SGS – CPI Inflation… (using) the 1980-based measure came in at 9.4% in November …” (emphasis added)
Shadowstats.com, “November CPI, Industrial Production”, 12/14/12

The proposed forced Investment of Present and Prospective Retirees 401(K) Assets in U.S. Treasury Paper about which we earlier wrote, is now followed by yet another prospective attack on Retirees Security, and indeed on the Wealth Security of those who hold $US Denominated Assets.

The Prospective Rigging of the CPI Calculation Protocol would , yet again, make the “Official” CPI even further removed from The Inflation Reality.

The Reality is that the current U.S. Inflation Rate, 9.4%, is already Threshold Hyperinflationary.

And, of course, Official Numbers-Rigging is not limited to the U.S. We have earlier noted Chinese and Eurozone Numbers-Rigging as well.

But the Key Point for Investors is understanding the Motivation behind Government and Mega-Banks pushing for e.g., Mandatory Government Securities Investment, and changing the way Inflation is calculated.

The Powers-that-Be in the Global Banking and Finance community know that the ever-increasing Money Printing – QE to Infinity – is already leading to increasing Price Inflation, which they wish to hide, and thus eventually to Massive Sales of Paper Treasury Securities (for which they wish to have Buyers, e.g., via 401(K) Funds).

Of course, Part and Parcel of The Powers’ attempt to extricate themselves from the Crises of their own making is the Ongoing, for years, Campaign by The Cartel (Note 1) to suppress the Price of Gold and Silver.

That is because increasing recognition of the legitimacy of Gold and Silver as Real Money tends to devalue their Paper Treasury Securities and Fiat Currencies.

Regarding the Ongoing Takedown of Gold and Silver Prices, the Advice of Precious Metals Guru, Jim Sinclair, is worth heeding.
Dear My Dear Extended Family,
Hi Jim,
How should I read the negative pressure over gold and gold stocks? What’s going to change this negative scenario?
Respectfully,
Arlen
Dear CIGA Arlen,
This is capitulation everywhere. This event has been a manufactured market move since $1800, with clearly planned and executed intervention. The gold price take downs during low volume periods internationally is a known price moving only tactic.
I simply shut off the machine because all the regular causes for the gold price will make themselves effective with time. A manufactured market event will not change the trend. Even the most professional can be reduced to sheeple by their emotions.
I refuse emotions and emotional people in a market context. To save yourself from all this that has happened and will continue to happen requires commitment and courage.
You have it or you do not. Admit who you are and act accordingly.
Like every mistake made by Westerners, what you see today is simply driving gold into Asian control.
Jim

“How To Read The Negative Pressure Over Gold And Gold Stocks”
Jim Sinclair, jsmineset.com, 12/18/2012

And
My Dear Extended Family,
You cannot fix the problems of the Western Economic system by breaking the telltale thermometer, which is the price of gold.
There is not one professional who does not know sales in extreme volume at a time of low activity internationally have but one purpose, and that is to reduce the price of gold.
Charts and TA in such a manipulated, manufactured market, as understood by you, are totally useless. This is a move of desperation by the Fed via the gold banks based on the false premise that attacking symptoms without meaningful economic intervention is going to cure the problem.
Gold is going to $3500 and above. The US dollar is headed to .7200 and lower.
We are once again giving away greatness by driving gold into the coffers of Asia at bargain process that a powerful academic bureaucrat has selected. It is just that simple.
Nobody said survival from the onslaught of the demons would be easy, but it will be successful.
Respectfully,
Jim

“A Move of Desperation By The Fed”

Jim Sinclair, jsmineset.com, 12/20/2012

And the Advice of brilliant Commodities Trader Dan Norcini is worth heeding as well.

“Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. “Stand and Deliver or Go Home” should be the rallying cry of the gold longs to the paper gold shorts.”
Trader Dan Norcini

Regarding Official Political data, fortunately, there are Official as well as privately Numbers which tend to better reflect Economic and Financial Realities knowledge of which is essential for successful investing.

In China, for example, electricity usage is a better indicator of GDP than say their Massaged and Political GDP Numbers.

Generally, the Prices, Prospects and Trends of Essential Assets which get used, and get used up, are the very Best Indicators upon which to base wise Investment Decisions.

They are the best Indicators because, since they get used up, their prices are hardest to manipulate.

That is why we Metaphorically say that the Price of Crude Oil “tells the Truth”. Similarly, the Price of Essential Food Grains, Wheat, Corn and Soybeans, “Tell the Truth” about Inflation and Economic Activity generally, as well increasing demand the World’s 80 Million per year population growth.

For Profit, Protection and the Real Numbers which reflect Inflation and Economic Activity, track the Prices of the aforementioned Assets which get used up. Regarding our specific Recommendations for profit and protection, see Notes 2, 3 and 4.

Captain Hook’s advice regarding the $US is applicable to most Fiat Currencies.

“…Western central banks are having their bullion reserves run down to keep their scheming ways from being discovered, which will eventually cause the need for a price adjustment upwards. The bad news associated with this is unfortunately most Westerners will not participate because they neither understand nor own many precious metals, which will make surviving a financial meltdown difficult indeed.  

… “without a doubt the ‘big event’ that is coming down the pike eventually that will define the endgame for the American Empire is when it becomes apparent to everybody (including American’s themselves) the $ is on its way out as the world’s reserve currency, and they accelerate the sale of $ denominated and US based assets, which includes debt securities. (i.e. if they are held as investments.) This process is of course already well underway, with direct trade and petro-dollar exclusion deals between countries becoming increasingly common. But the real problem for the $ will come when it loses it’s safe haven status – that’s when there will be no saving the $ from the type of dramatic waterfall event implied possible by the Fibonacci resonance related projection… .

“First they will sell US assets, and then the $, with both of these conditions favorable for higher interest rates and precious metals prices. This is when the Dow to Gold ratio will reach unity, or lower, as the masses realize the emperor has no clothes, meaning the US is as much a financial basket case as Greece, and the only way to preserve one’s wealth is to exit fiat currency related economy(s).

“And there’s only one way to do that – in desired tangibles – with gold and silver at the top of the list.”

Captain Hook via Goldseek.com

For Protection against the Rapidly Eroding Purchasing Power of Fiat Currencies, favorably consider investing in Essential Assets which get used up and above all Buy Physical Gold and Silver and Quality Mining Shares on the Dips.

Best regards,

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

© 2005-2017 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

Catching a Falling Financial Knife