Best of the Week
Most Popular
1.UK House Prices BrExit Crash NOT Likely Despite London Property Market Weakness - Nadeem_Walayat
2.BrExit Morning - New Dawn for Britain, Independence Day! - Nadeem_Walayat
3.LEAVE Wins EU Referendum - Sterling and FTSE Hit Hard, Pollsters, Bookies and Markets All WRONG! - Nadeem_Walayat
4.BrExit Implications for UK Stock Market, Sterling GBP, House Prices and UK Politics... - Nadeem_Walayat
5.Trading BrExit - Stocks, Bonds, Sterling, Opinion Polls, Bookmaker Odds and My Forecast - Nadeem_Walayat
6.FTSE and Sterling Brexit Trading, Deconstruction of the EU Referendum Result - Nadeem_Walayat
7.UK Interest Rate Cut to 0.25% Imminent and More QE Money Printing - Nadeem_Walayat
8.Trading BrExit - British Pound Plunges, FTSE Stock Futures Slump on LEAVE Shock Referendum Win - Nadeem_Walayat
9.The Stock Market is Reading it Wrong! - Chris_Vermeulen
10.Breakouts Galore in Gold and Silver - Jordan_Roy_Byrne
Free Silver
Last 7 days
Silver Bull Faces Correction - 22nd July 16
The Serious Warning No One’s Talking About - 22nd July 16
Stock Market Insight from Greed, Volatility, and Put/Call Ratio - 22nd July 16
What Will Happen To the Stock Market When Interest Rates Rise? - 22nd July 16
How to Escape the World’s Biggest Ponzi Scheme - 22nd July 16
Addicted to Debt - We Can’t Borrow from the Future Anymore - 21st July 16
Not Everything Is Bullish for Gold - 21st July 16
Don’t Get Sucked Back Into the Stock Market - The Big Picture Hasn’t Changed - 21st July 16
Silver – Caught Inside - 21st July 16
Forex: "The Markets Are Getting Exciting!" - 20th July 16
China Economic Troubles - Is Kyle Bass Finally Getting His Revenge? - 20th July 16
Why Lithium Will See Another Price Spike This Fall - 20th July 16
The Peak Oil Paradox Revisited - 19th July 16
SPX Challenges the Upper Trendline - 19th July 16
Missing ’28 Pages’ of the 9/11 Report Released into Blitzkrieg of World Events - 19th July 16
Likelihood of Organized Disruption at GOP Convention - 19th July 16
More on the ‘Breadth Thrust’ and Stock Market Internals - 19th July 16
FX Traders: Get a Free Week of Forecasts (Details inside) - 19th July 16
Ups and Downs in Gold and Crude Oil Price - 19th July 16
Keep an Eye on ‘Bitcoin’ as the Next ‘Financial Crisis’ Starts! - 18th July 16
Erdogan Might Have Known about the Coup but Didn’t Prevent It on Purpose - 18th July 16
More Deflation Ahead: Silver, Gold And Their Mining Stocks A Must-Have - 18th July 16
Stock Market Minor Top? - 18th July 16
5 Best Gold and Silver Junior Mining Stocks in 2016 - 17th July 16
Gold And Silver – NWO-Created Tragedies Will Never End, Seek Truth - 16th July 16
How Long Can Buybacks Continue To Support A Market Which Is Standing On A Fundamentally Flawed Premise? - 16th July 16
Will They Come For Your IRA? - 15th July 16
Gold’s Record Selling Overhang - 15th July 16
Capitalism Has Entered a New Era—and Historic Stock Market Investing Returns Are Gone Forever - 15th July 16
Gold Price Could Hit $5,000 or Even $10,000 in a Few Years - 15th July 16
Junior Gold and Silver Mining Funds or Individual Gold and Silver Mining Stocks - 15th July 16
The Soaring Risk of Flying in Bernanke's Helicopter - 15th July 16
The Broad Stock Market, Helicopters and Gold - 15th July 16
The Curious Case of Vanishing Lady Liberty; Only Gold and Silver Remember Her - 15th July 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Forex Forecasts

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

© 2005-2016 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