Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Authentic Market Trends and Investor Opportunities

Stock-Markets / Financial Markets 2013 Feb 09, 2013 - 01:15 PM GMT

By: DeepCaster_LLC


“There is no paper money in 2014 or 2015 that will be worth much of anything.”


“You can’t get [silver coins]. They sell out….Several mints have run out of coins because everybody’s worried about the future of the world.”


“Gold has been up 12 years in a row which is extremely unusual for anything.”


“Don’t Sell Your Gold and Silver Coins: Jim Rogers The Daily Ticker, 02/07/2013

Investors are increasingly concerned, understandably, about the Reliability of Official or Quasi-Official (e.g., those emanating from Too-Big-To-Fail Banks and Ratings Agencies) Statistics and other Financial and Economic News.


Understandably so, given that the actions of Participant Mega-Financial Institutions in the LIBOR Scandal cost Borrowers Billions.


Understandably so, if the allegations in the Ratings Agency litigation are proven true, Investors in deceptively “Rated” Mortgage-Backed Securities, and other commercial Paper have taken a Financial Bath there also.


Understandingly so, given the continuing Flood of Bogus Official Economic Statsitics (See Note 1).


But the Mismatch between Bogus “Statistics” and “News” on one hand and the Real Numbers and Real News on the other provides Opportunities to Profit and Protect. This is because Bogus Statistics and Disinformation give rise to inherently Unsustainable Trends and misallocation of Capital.


As Jim Rogers points out, Investors aree fleeing Fiat Currencies for the safety of Real Assets going forward, and especially into Real Money, Gold and Silver.


That this is a Trend with “legs” going forward is virtually indisputable.




Consider what China, The Major Power With Assets, is doing.


“China's gold production rose for a sixth consecutive year and hit a record 403 tonnes in 2012…the Shanghai Securities News said on Thursday.

Compared to a year ago, gold production was up 11.7 percent, the paper said, citing data from China's Gold Association…

China has said that it aims to produce between 420 and 450 tonnes of the precious metal in 2015”

JBGJ continues to find China’s ability to increase gold production so smoothly by these huge amounts – over 40 tonnes in 2012 – without any particular geological news, very odd. It speaks of course to the massive degree of undervaluation of the yuan, possibly to China’s peculiar energy pricing policies as well. Consequently if those policies change, China may be forced into the world gold market in an even more dramatic way.

“China's 2012 gold output up 12 percent – paper”, 02/07/2013 and thanks to JBGJ

Clearly, China’s Acquisition of Physical Gold (and indeed Real Assets around the World) is not likely to stop any time soon.


Consider The Trend reflected on the Chart “Chinese Gold Production plus Net Imports since 2000”. 



In sum, the Chinese are trading Fiat Currencies (and Securities denominated therein) whose Purchasing Power is decreasing, for Gold.


A related Trend (“Related” because Fiat Currency purchasing Power Degradation generates Price Inflation) which is not honestly reported by Officialdom and Quasi-Officialdom is Inflation.


Real and Serious Price Inflation (and indeed Threshold Hyperinflation) is already with us as Tyler Durden points out


“While every central banker and policy-leech spews forth the government-supplied statistics on inflation - noting that all is well, carry on - we recently pointed out that Gas Prices are their highest ever for this time of year. Of course, the standard supply constraints (or technical) reasoning was applied to dismiss this as transitory (even though it has continued to rise since); but what is perhaps more worrisome is the broad-based nature of the real inflation that is leaking into our global supply chain. The 24-commodity heavy S&P GSCI index (widely recognized as a leading measure of general price movements and inflation in the world economy) has never been as high in early February as it is currently - ever. And with global growth stagnating at best, it seems a tough call to blame 'recovery' for this inflating (fastest pace in 8 years) raw material price leaking cost-push inflation (and margin-compression) into the real economy.”


“No Inflation? Commodities Highest Ever For This Time of Year,” Tyler Durden, 02/05/2013


This presents an opportunity to be Profitably Long Commodities if the specific commodities selected and the timing are right. (Regarding Specific Recommendations see Notes 1, 2, 3, 4 and 5 below.)


This Commodities Inflation is reflected in the Real Numbers (as opposed to the Bogus Official Ones) conveniently provided to us by calculates Key Statistics the way they were calculated in the 1980s before Official Data Manipulation began in earnest. Consider


Bogus Official Numbers vs. Real Numbers (per


Annual U.S. Consumer Price Inflation reported January 16, 2013

1.74%            /                9.36%


U.S. Unemployment reported January 4, 2013

7.8%                       /               23.0%


U.S. GDP Annual Growth/Decline reported January 30, 2013

1.54%            /              -2.20% (i.e., a Negative 2.20%)


U.S. M3 reported January 24, 2013 (Month of December, Y.O.Y.)

No Official Report    /               4.38%


The Threshold Hyperinflation which we already experience is mainly caused, it is widely and correctly acknowledged, by increased Central Bank-provided Liquidity.

And most of the Liquidity has been employed to Monetize Debt.


This has resulted in Interest Rates being held artificially low, temporarily.


And resulted in Equities being boosted artificially, but understandably, high, temporarily (a “short” Opportunity when the time is right).


The recent near record highs in the Equities Markets have, finally, resulted in “Retail” (i.e., small) investors coming back into the market ($77.9 billion in January, 2013 highest since February, 2000) late, as usual.


But “late” enterers historically signal the approach of Market Tops, as they did in the 2000-2001 Period when the Internet bubble burst. Another Short Opportunity when the time is right.


In sum, it looks like the “Smart Money” is selling and the “Retail” Money is buying, which is not a reflection of Sustainable Highs as John Hussman points out


“It’s fine to argue that perhaps investors are momentum chasers, and with profit margins now about 70% above historical norms (making stocks seem both ‘safe’ and misleadingly cheap), with stock prices up, and with low returns on cash, investors not holding stocks will be the greater fools that allow investors who do hold stocks to get out. [...] But the problem with the ‘great rotation’ argument is that somebody has to hold the debt. Somebody has to hold the cash. It cannot go anywhere, and it is impossible – in aggregate – for the markets to ‘rotate’ out of it.”


“Capitulation Everywhere”, John Hussman,, 01/28/2013


Be Alert to the Consequences of and Opportunities flowing from the aforementioned Trends, Be Very Alert.


And bear in mind the Longest Trend:


“Five thousand years of history show us that Gold is always money and paper always fails.”

Rep. Ron Paul (R-Tx)

Bloomsberg News, 02/08/2013

Best regards,
Wealth Preservation         Wealth Enhancement

© 2013 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