Best of the Week
Most Popular
1.Bitcoin War Begins – Bitcoin Cash Rises 50% While Bitcoin Drops $1,000 In 24 Hours - Jeff_Berwick
2.Fragile Stock Market Bull in a China Shop -James_Quinn
3.Sheffield Leafy Suburbs Tree Felling's Triggering House Prices CRASH! - Nadeem_Walayat
4.Bank of England Hikes UK Interest Rates 100%, Reversing BREXIT PANIC Cut! - Nadeem_Walayat
5.Government Finances and Gold - Cautionary Tale told in Four Charts - Michael_J_Kosares
6.Gold Stocks Winter Rally - Zeal_LLC
7.The Stock Market- From Here to Infinity? - Plunger
8.Ethereum (ETH/USD) – bullish breakout of large symmetrical triangle looks to be getting closer - MarketsToday
9.Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom - Stewart_Dougherty
10.Finally, The Fall Of The House Of Saud - Jim_Willie_CB
Last 7 days
Bitcoin can be stolen. Although Can’t be hacked - 11th Dec 17
Have Stocks Reached A Permanently Rigged Plateau? - 11th Dec 17
Trying To Beat The System Is A Fatally Flawed Investment Strategy - 11th Dec 17
Is This The Beginning Of The Next Silver Rush? - 11th Dec 17
The Dow Gold Ratio - 11th Dec 17
Evidence of a Stock Market Top Mounting - 10th Dec 17
Bitcoin Doesn’t Exist – Forks and Mad Max - 10th Dec 17
Bitcoin Doesn’t Exist – Putting the Banks Out of Business - 9th Dec 17
China’s Struggle for Market Economy Status - 9th Dec 17
Is Gold Really Strong? - 9th Dec 17
Bitcoin Parabolic Mania - 8th Dec 17
SPX Make a 61.8% Retracement - 8th Dec 17
Gold, Stocks and Bonds - The 3 Amigos Update - 8th Dec 17
Gold Stocks Break, Gold to Follow - 8th Dec 17
4 Charts That Show How Trump Tax Cuts Will Trigger A Recession - 8th Dec 17
Precious Metals Breaking Down! 3 Amigos to Abort? 4 Horsemen to Ride? - 7th Dec 17
Bitcoin Just Smashed Through $12k… Wait, $13k… Now $14k… This Is Getting Ridiculous! - 7th Dec 17
Stock Market Tops Look Like This - 7th Dec 17
Crude Oil, Oil Stocks and Invalidation of Breakouts - 7th Dec 17
Bitcoin Doesn’t Exist – 2 - 7th Dec 17
British Pound Sterling Volatility In Crucial Week of Brexit Talk - 6th Dec 17
Day Trading vs Swing Trading: Which One is the Better Strategy? - 6th Dec 17
Crude Oil and Negative Divergences - 6th Dec 17
EU Bailins Coming – 114 Italian Banks Have NP Loans Exceeding Tangible Assets - 6th Dec 17
Bitcoin Doesn’t Exist - 5th Dec 17
Advantages of Car Insurance to Protect a Vehicle - 5th Dec 17
How High Will Gold Go? - 5th Dec 17
The Loonie Takes Flight -- BUT a "Labor Miracle" is NOT the Reason Why - 5th Dec 17
The True Meaning of Bitcoin's 'Success' - 5th Dec 17
Gerald Celente: Middle East Wild Cards Could Bring Down Markets, Drive Up Gold - 5th Dec 17
Silver’s Positive Fundamentals Due To Strong Demand In Key Growth Industries - 4th Dec 17
Stock Market Positive Expectations, But Will S&P 500 Continue Higher? - 4th Dec 17
Bitcoin Achieved What The Gold Market Never Could & Never Will? - 4th Dec 17
Stock Market Top Distribution Starting - 4th Dec 17
Understanding Real Time Forex Trading - 4th Dec 17

Market Oracle FREE Newsletter

Traders Workshop

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

© 2005-2018 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

Catching a Falling Financial Knife