Best of the Week
Most Popular
1.Election Forecast 2015 - Opinion Polls Trending Towards Conservative Outright Win - Nadeem_Walayat
2.UK Solar Eclipse - End Time Sign, Judgement Day, Doomsday! - Nadeem_Walayat
3.Gold And Silver - When Will Precious Metals Rally? Not In 2015 - Michael_Noonan
4.Preparing for the Next Stocks Bear Market - Forecast 2015-2016 - Gary_Savage
5.Is a Stock Market Crash Imminent? - David Eifrig
6.Gold Price Slumps as US Dollar Soars, What's Next? - Nadeem_Walayat
7.US Dollar Forex Pairs and Gold Chartology - Rambus_Chartology
8.Election Forecast 2015: The Day Labour Lost the General Election - Nadeem_Walayat
9.The ECB Should End QE Next Month - EconMatters
10.Silver Price Poised to Surge - Zeal_LLC
Last 5 days
Is the U.S. Headed for a Recession? - 1st Apr 15
Did The Fed Just Admit to Deep Uncertainty About Our Financial Security In Retirement? - 1st Apr 15
Gold Price Flat In Quarter In Dollars But 5% Higher In Pounds - 1st Apr 15
Financial Market Extremes: Expect Consequences - 1st Apr 15
Iceland Ponders Radical Banking Plan to Eliminate Fractional Reserve Lending - 1st Apr 15
How Traded Options Can Power a 300%-Plus Gain on Twitter - 1st Apr 15
You Can’t Afford Not to Invest in This Latest Yesla Technology - 1st Apr 15
Election Forecast 2015 - Coalition Economic Recovery vs Labour Collapse - 1st Apr 15
Bitcoin Price Down Move Still in the Cards - 31st Mar 15
No Body Understands Debt - Living in a Free-Lunch World - 31st Mar 15
Will Gold Win Out Against the US Dollar? - 31st Mar 15
Middle East Balance of Power Matures - 31st Mar 15
Ed Miliband Debate Election 2015 Analysis - Labour Spending, Debt and Economic Collapse - 31st Mar 15
Gold and Misery, Strange Bedfellows - 31st Mar 15
Why are Interest Rates So Low? Ben Bernanke, Confused as Ever, Starts His Own Blog to Prove It - 31st Mar 15
Don’t Celebrate the U.S. Housing Market Recovery Yet - 30th Mar 15
A Middle East Nuclear Holocaust - 30th Mar 15
Peak Gold? – Goldman Sachs Research Warns of Peak Gold Production - 30th Mar 15
With Yemen Burning, Arab Spring II Is Underway - 30th Mar 15
No FED Bets From the BIS - 30th Mar 15
Election Forecast 2015 - Debates Boost Labour Into Opinion Polls Seats Lead - 30th Mar 15
Economic Recovery, Geopolitics and Detergents - 30th Mar 15
U.S. Dollar, Commodities and the Gold Miners GDXJ ETF Analysis - 30th Mar 15
Stock Market Short-term Downtrend - 30th Mar 15
David Cameron Election 2015 Debate Facts Check - Employment, Immigration, Debt & Deficit - 29th Mar 15
Stock Market About Ready to Crash! - 29th Mar 15
Reflections in a Golden Eye - Gold Market Rejection, Repatriation and Redemption - 28th Mar 15
Stock Market Inflection Point - 28th Mar 15
Gold And Silver - What Moved Price? Bab el-Mandeb And Uranus Square Pluto. What?! - 28th Mar 15
Stock Market Investment Parachutes; Do You Have Yours? - 28th Mar 15
Peak Gold Misunderstanding, is Gold About to Run Out? - 28th Mar 15
Deflation Watch: Key U.S. Economic Measures Turn South - 27th Mar 15
The Hard-Earned Truth About Recreational Real Estate - 27th Mar 15
Bitcoin Price Still in Important Territory - 27th Mar 15
Stocks Bear Market Conditions - Index Market Range Warning - 27th Mar 15
BEA Leaves Q4 2014 U.S. GDP Growth Essentially Unchanged at 2.22% - 27th Mar 15
Brazil Economy Victim of Vulgar Keynesianism - 27th Mar 15
Gold to Fuel Silver Price Upleg - 27th Mar 15
Gold and Silver Stocks Will Rise Again! - 27th Mar 15
Risk of ‘World War’ between NATO and Russia on Ukraine as Yemen Bombed - 27th Mar 15
FOMC Minutes Turned The Gold Tide - 27th Mar 15
Sheffield Hallam Election Battle 2015 - Lib Dems Go to War Whilst Labour Sleeps - 27th Mar 15
Gold Effect On Mining & Shale Wasteland - 27th Mar 15
How Stock Investors Should Play the 2016 Presidential Race - 26th Mar 15
MidEast Energy Alert: Why the Crisis in Yemen Could Get Ugly Very Fast - 26th Mar 15
Stock Market Downward Spiral of Dumbness - 26th Mar 15
The Monetary Approach Reigns Supreme - 26th Mar 15
Stock Market Large Gap Down, Despite the Algos' Push Back - 26th Mar 15
Crude Oil Surges, Gold price Spikes as Middle East Tensions Escalate - 26th Mar 15
The U.S. Housing Market Recovery Is Fabricated Optimism - 26th Mar 15
Why Yemen Is The Next Saudi-Iranian Battleground - 26th Mar 15
The Crude Oil Price Crash and China Economic Slow Down - 26th Mar 15
Global Financial Markets Are More Distorted Than Ever Before - 26th Mar 15
One More Stock Market Rally and Then a Huge Drop Expected - 26th Mar 15
Danger Will Robinson - Stock Market Crash Warning - 25th Mar 15
Learn the Basics of Corrective Elliott Waves - 25th Mar 15
Why CNBC Is Hazardous to Your Financial Health! - 25th Mar 15
Will Your Retirement Accounts Survive The Coming Tax Code "Revolution"? - 25th Mar 15
US Dollar - Americas Phoenix - 25th Mar 15
California’s Epic Drought: Only One Year of Water Left! - 25th Mar 15
What’s Wrong With Silver? - 25th Mar 15
SPX Futures Appear Weak. WTIC and Gold May Be at Max Retracement - 25th Mar 15
We’re at the Dawn of a “New Energy Age” - 25th Mar 15
A Very Weak U.S. Economic Recovery - 25th Mar 15
Zero UK CPI Inflation Rate Prompts Deflation Danger Propaganda For Fresh Money Printing - 25th Mar 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

US Economy Still on Life Support

Investor Profit from Several Coming Crises

Stock-Markets / Financial Markets 2013 May 04, 2013 - 10:38 AM GMT

By: DeepCaster_LLC

Stock-Markets

(The Fed is) “creating massive fraud…in the short term it’s great for assets…at some point there’s a levitational problem.”    Nouriel Roubini,CNN Money, April 29, 2013

 

Like it or not, several crises are impending in the next few months. And it is highly likely certain of these are unavoidable.

 

Fortunately, it is possible to prepare to avoid significant damage from most of these and indeed to profit, as we indicate here.


Unfortunately, if one fails to prepare for certain of these very soon, it will be too late, even impossible, to prepare later.

 

Crisis #1: for $US denominated asset holders: The $US is losing its status as the world’s reserve currency.

 

Why? Primarily because it is losing its purchasing power because The private for-profit Fed is printing money far in excess of any increase in production of goods and services (i.e., via Q.E. to Infinity). Consequently, key nations such as Australia and France have already struck deals to bypass the $US by agreeing that their currencies can be directly convertible into Chinese Yuan. And the recent BRIICSS nations summit laid the groundwork for a non U.S. dollar-centric international financial system.

 

The Fed’s increasing monetary inflation creates price inflation because its wildly excessive money printing is already diminishing the purchasing power of the $US. Thus it is not surprising that real price inflation in the U.S. is already 9.12% per shadowstats.com.

 

Bernanke has committed to continuing to print $85 billion per month (i.e., $1 trillion per year). Much of this money is going into The Fed’s mega-bank shareholders/owners balance sheets and not into the real economy, so it is highly unlikely the $US Dollar-centric western world will see a dramatic economic recovery.

 

Investor Response #1: With deliberate speed, diminish overexposure to $US denominated assets and focus on purchasing real money (i.e., physical gold and silver), quality miners (see Deepcaster’s rRecommendations (e.g., re. Notes 1, 2, 3 below), and interests in food-productive agricultural assets and select productive inflation-resistant real estate properties.

 

Crisis #2: Bank Deposits, some brokerage accounts, and 401(K)s, and IRAs are no longer safe stores of wealth.

 

Regarding bank deposits, most are already generating a negative real return, once real inflation is factored in. Interest paid on such deposits, e.g., in CDs, is already miniscule thanks to the Fed’s ZIRP.

 

And the principal amount of deposits is no longer “safe” as the Cyprus template proved. Large Euro depositors in Cyprus banks were deemed creditors of the bank and had up to 60% of their “deposits” seized without compensation, and probably with the blessing of the U.S. controlled IMF, and ECB.

 

This is a template for the future treatment of bank “deposits.”

 

Similarly, the treatment of investor funds in MF global brokerage accounts is likely a template for treatment of certain brokerage account funds. Be selective about where you put your money.

 

Investor Response #2: Our advice is similar to but not identical to investment legend, Jim Sinclair’s “Get out of the System”, at least with a portion of your assets you cannot afford to lose. See recent Alerts regarding specific recommendations.

 

Crisis #3: Markets in Paper Gold and Silver (e.g., LBMA and Comex) are increasingly discredited.

 

The Cartel (Note 4) takedown of gold (by over $200) and silver in mid-April have discredited those markets.

 

Why? Because, while that massive price takedown did achieve a substantial diminishment of pro-precious metals small investors sentiment, that massive takedown also generated a huge spike up in demand for purchase and delivery of physical metal such that in retail locations (e.g., coin stores) around the world physical gold and silver are simply unavailable in some locations. And where these are available, some premiums have nearly doubled.

 

Voice of China Radio reports that over the past two weeks, Chinese housewives purchased 300 tons of Gold ($US 16 billion).

 

Investor Response #3: If and as possible, buy physical in a certain form (see Deepcaster’s Letters and Alerts for preferred forms) on any dip and take delivery. And stocks in quality miners are now available at bargain prices.

 

Crisis #4: Equities Markets are increasingly artificially elevated.

 

Given the lousy fundamentals in most developed Western nations and several other nations (which we have documented ad nauseam in our recent publications), it is reasonable to ask why major equities markets have been elevating this year.

 

Half of the answer obvious to most is the massive injections of QE by The Fed, Bank of Japan, ECB and others.

 

But even more recently there is an even more alarming cause: central banks have also been increasingly buying equities in record amounts according to a central banking publication /RBS Survey. (April, 2013)

 

Not only does this create considerable moral hazard, but also greatly exacerbates the risk of hyperinflation and/or a crash. (This risk is exacerbated by the fact that NYSE margin debt is at record highs.) Of course the official numbers (in the U.S., China, and elsewhere) attempt to hide the impending hyperinflation. But the fact, e.g., that the U.S. is threshold hyperinflationary already at 9.12% per shadowstats.com is revealing.

 

This increased central bank equities buying, like the mid-April paper gold and silver price takedown, evidence an increasing desperation by the central banks in keeping the equities market boosted and gold and silver prices suppressed. The day of reckoning is approaching ever closer for these markets. The artificial boosting cannot last forever.

 

Investor Response #4: Be prepared for the impending equities takedown. Leveraged short ETFs put on at the right time can not only protect against loss but also generate significant profit.

 

“Be Prepared.” 

- Boy Scouts of America Motto

 

Best regards,

www.deepcaster.com

DEEPCASTER FORTRESS ASSETS LETTER

DEEPCASTER HIGH POTENTIAL SPECULATOR

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.

DEEPCASTER LLC Archive

© 2005-2015 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

Free Report - Financial Markets 2014