Surmounting The Cartels’ ‘End Game’ Juggernaut, An Overview & Update Of Cartel Strategy
Stock-Markets / Market Manipulation Sep 25, 2009 - 02:29 PM GMTBy: DeepCaster_LLC
“The sun is setting on the US dollar as the ultra-loose monetary policy of the US Federal Reserve forces China and the vibrant economies of the emerging world to forge a new global currency order, according to a new report by HSBC.”
HSBC bids farewell to dollar supremacy
Ambrose Evans-Pritchard, 20 Sep 2009
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/6211858/HSBC-bids-farewell-to-dollar-supremacy.html
“It is absurd that the United States has a central bank that is more accountable to the financial industry than it is to the public.”
The Rally against Obamacare for the Banks, The Guardian
Dean Baker, September 23, 2009
“WASHINGTON – A top White House economic adviser says the Obama administration's proposed overhaul of financial rules preserves the policy of "too big to fail," and could lead to future bailouts.
Former Federal Reserve Chairman Paul Volcker said Thursday that by designating some companies as critical to the broader financial system, the plans create an expectation that those firms enjoy government backing in tough times. That implies those financial companies "will be sheltered by access to a federal safety net," he said.
In testimony prepared for the House Financial Services Committee, Volcker said emergency measures by the Fed, Treasury and Congress during last year’s financial crisis created the expectation that the government would step in to protect failing companies, their bond holders and stockholders.”
Volcker: Obama plans to maintain ‘too big to fail’
Daniel Wagner, AP Business Writer, September 24, 2009
The Fed-led Cartel’s* ‘End Game’ Juggernaut is Rallying Profitably Along – “profitably” to the Tune of a $13.3 Trillion gain for certain Mega-Financial Institutions in the last 6 months of 2008, when Equities Investors worldwide were losing Trillions in the Equities Markets Crash. (See The Central Banker’s Bank’s (The Bank for International Settlements) website www.bis.org (Path: Statistics>Derivatives>Table 19 below) and “05/29/2009 Opportunities & Threats in Derivatives Shocker” in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.)
These Massive Profits were doubtless “facilitated” by The Fed-led Cartel’s Interventional Regime which we describe in detail in the articles noted below. Indeed, there is clear and convincing evidence that The Federal Reserve leads a Cartel of key Central Bankers and favored Mega-Financial Institutions in an ongoing Regime of Overt and Covert Manipulation of the Precious Metals Equities, Strategic Commodities and other Markets, as we also demonstrate in the articles noted below.
*We encourage those who doubt the scope and power of Overt and Covert Interventions by a Fed-led Cartel of Key Central Bankers and Favored Financial Institutions to read Deepcaster’s December, 2008 Letter containing a summary overview of Intervention entitled “A Strategy for Profiting from the Cartel’s Dark Interventions & Evolving Techniques” and Deepcaster’s July, 2009 Letter entitled "A Strategy For Profiting From The Cartel’s Dark Interventions & Evolving Techniques - II" in the “Latest Letter” Cache at www.deepcaster.com. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org for information on precious metals price manipulation. Virtually all of the evidence for Intervention has been gleaned from publicly available records. Deepcaster’s profitable recommendations displayed at www.deepcaster.com have been facilitated by attention to these “Interventionals.”
But there are Steps which Equities Investors worldwide can take to derail the Juggernaut, and profit along the way.
Why derail the juggernaut, one may ask.
One answer is that the Fed-led Cartel’s policies appear to have resulted and to be resulting in a massive Wealth Transfer from Investors/Taxpayers around the world to the Fed-led Cartel and their favored financial institutions -- $13.3 Trillion in the last 6 months of 2008 alone.
Of course, a key component of this wealth transfer involves debasing the value of the U.S. Dollar which, as HSBC correctly notes above primarily results from “the ultra-loose monetary policy of The “Federal Reserve”. Since The Fed was established in 1913 the U.S. Dollar has lost over 95% of its purchasing power, as reported by Rep. Ron Paul and others.
One of several negative consequences is that Investors who have saved (they thought) wealth in Dollars over a lifetime have seen the purchasing power of those dollars dramatically eroded by over 35% in the last 8 years alone, and the erosion continues.
To elaborate a bit, there is considerable evidence that “ultra-loose monetary” and credit policies, and the consequent housing credit crises and Market Crash were the result of the conscious policy of the Fed-led Cartel.
Consider the following observation by Harry Schultz:
“…what is the reason for this “seemingly random monetary mess that multiplies its momentum every day? The answer, in one word, control. The elite/insiders already have control of the financial system, but they wanted more, much more…and it was not random, it was planned.” (emphasis added)
“How will all the above manifest itself in your life? The answer: “All you own will shrink...your income, assets, net worth, will shrink year after year in real terms inflation adjusted and possibly also nominally.”
HS Letter, April 27, 2008.
Harry Schultz, Eminence Grise of the Newsletter writing Fraternity sees the Threat to Profits and Wealth posed by the Fed-led Cartel* quite clearly.
The Cartel* ‘End Game’, as Deepcaster has named it, apparently involves Stealthily transferring ever more Wealth and Power to The Cartel at the expense of Investors/Citizens around the world. (See below, and “Coping with the Superpower Cartel Threat” (1/30/09) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.)
Of course, The Fed-led Cartel’s increasing Power and Profits are threatened by Rep Ron Paul’s ‘Audit the Fed’ Bill (H.R. 1207) which fortunately has garnered two thirds Majority of the U.S. House of Representatives as co-sponsors and over half of the Senate on a companion Bill. However, it is threatened by Congressman Barney Frank’s parliamentary maneuver to merge it with a large Bill that could actually result in enlarging the power of the Fed.
Moreover, the private for-profit Fed has predictability responded with a not-so-veiled counter-Threat delivered via Chairman Bernanke’s recent Testimony to Congress.
“Federal Reserve chairman Ben Bernanke unleashed an alarming veiled threat of financial terrorism when he was questioned by Rep. Duncan on Thursday about his response to the fact that a majority of Congress (is) co-sponsoring Ron Pauls H.R. 1207 bill to audit the Federal Reserve.
Bernanke clearly regarded the bills intent as hostile to the institution he represents:
“My concern about the legislation is that if the GAO is auditing not only the operational aspects of the programs and the details of the programs but making judgments about our policy decisions (it) would effectively be a takeover of policy by the Congress and a repudiation of the Federal Reserve (which) would be highly destructive to the stability of the financial system, the Dollar and our national economic situation.”
The brunt of Bernankes statement is as crystal clear as a threat from a common street thug -- back off from the Fed, or the economy gets it.
The chairman clearly implies that any attempt to restore monetary powers constitutionally granted to the Congress would be seen as a takeover and that the defensive and repudiated Fed would respond destructively.
Of course Congress’ constitutional power over money is enumerated in Article I, Section 8 of the U.S. Constitution:
“The Congress shall have power To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;” “
Bernanke Threatens Economic Collapse If Fed Audited
Aaron Dykes, Infowars, Friday, June 26, 2009
It is thus understandable that a large majority of the Members of the U.S. House of Representatives has signed on to a Bill (H.R. 1207) to audit the private for-profit U.S. Federal Reserve.
That is because, whether all the signatories are fully aware of it or not, Fed Policies and actions are The Primary Cause of the Economic and Financial Crises from which we suffer today, as we show below and elsewhere.
The Root Cause of our Current Crises and The Systemic Threat to Democracy and Profits
Of even greater concern is F. William Engdahl’s contention that the 2008 Credit Crunch and Market Crash were planned: “…in every major U.S. financial panic…the titans of Wall Street…have deliberately triggered bank panics behind the scenes to consolidate their grip on U.S. Banking…”
As background to understanding the ongoing implementation of the Cartel’s Interventional Regime and “End Game” consider Engdahl’s position:
“…in every major US financial panic since at least the Panic of 1835, the titans of Wall Street – most especially until 1929, the House of JP Morgan – have deliberately triggered bank panics behind the scenes in order to consolidate their grip on US banking. The private banks used the panics to control Washington policy including the exact definition of the private ownership of the new Federal Reserve in 1913, and to consolidate their control over industry such as US Steel, Caterpillar, Westinghouse and the like. They are, in short, old hands at such financial warfare to increase their power.
Now they must do something similar on a global scale to be able to continue to dominate global finance, the heart of the power of the American Century.
That process of using panics to centralize their private power created an extremely powerful concentration of financial and economic power in a few private hands, the same hands which created the influential US foreign policy think-tank, the New York Council on Foreign Relations in 1919…”
Behind the panic: financial warfare over future of global bank power
F. William Engdahl, October 10, 2008
Consider the implications of the F. William Engdahl quote regarding “global bank power.” As Engdahl points out, the evidence is increasing that the recent financial panic and economic distress is and has been pre-planned as a part of Cartel Strategy to increase power and, in our view, to implement its “End Game.”
In light of these considerations it is not surprising that the Mega-Banks were the first to be Saved in the financial crisis. That is, a Major Negative Consequence of the Fall, 2008 Market Crash was a Taxpayer Financial bailout of several Key Mega-Banks. Yet the Bailouts allowed them to move on to subsequent great profitability.
Consider the case of Goldman-Sachs. Not only did Goldman receive billions in TARP funds (subsequently repaid) but they also received $11.9 billion via the AIG bailout.
One result was that Goldman survived and is reportedly to pay an average of $500,000 plus to each employee in compensation.
Meanwhile, the U.S. Consumer/Taxpayer and often Investors/Mortgage Holder who is 70% of the U.S. Economy is left with Greater Debt (to fund the Bailouts) and interest payments on that debt to the private for-profit U.S. Federal Reserve. Goldman et.al, but for the bailouts, would have collapsed. But the U.S. Consumers Taxpayer, however, has not been “saved” at all.
To understand the Cartel’s likely “End Game” we must understand the Root Cause.
The Root Cause of The ‘End Game’ Threat lies in the secrecy, structure, functioning and policies of the private-for-profit “U.S.” Federal Reserve.
Various international private banks, several of which are headquartered in Europe, own the “United States” Federal Reserve Bank. The European Banks were among the founding banks whose representatives, including Paul Warburg who wrote the charter at the Jekyll Island Georgia meeting, as documented in “The Creature from Jekyll Island”, by G. Edward Griffin.
These International Bankers, acting through their “U.S.” Fed, make money by creating money out of “thin air” as eloquently described by the Dean of the Newsletter Writers, Richard Russell:
“I still can’t get over the whole Federal Reserve racket.
Consider the following - - let’s take a situation where the U.S. government needs money. The U.S. doesn’t just issue United States Notes, which, of course it could. These notes would be dollars backed by the full faith and credit of the United States. No, the U.S. doesn’t issue dollars straight out of the U.S. Treasury.
This is what the U.S. does - - it issues Treasury Bonds. The U.S. then sells these bonds to the Fed. The Fed buys the bonds. Wait, how does the Fed pay for the bonds? The Fed simply creates money “out of thin air” (book-keeping entry) with which it buys the bonds. The money that the Fed creates from nowhere then goes to the U.S. The Fed holds the U.S. bonds, and the unbelievable irony is that the U.S. then pays interest on the very bonds that the U.S. itself issued. (With great profit to the private owners of The Fed - - Ed. Note) The mind boggles.
The damnable result is that the Fed effectively controls the U.S. money supply. The Fed is …not even a branch of the U.S. government. The Fed is not mentioned in the Constitution of the United States. No Constitutional amendment was ever created or voted on to accept the Fed. The Constitutionality of the Federal Reserve has never come before the Supreme Court. The Fed is a private bank that keeps the U.S. forever in debt - - or I should say in increasing debt along with ever rising interest payments.
How did the Fed get away with this outrage? A tiny secretive group of bankers sneaked through a bill in 1913 at a time when many in Congress were absent. Those who were there and voted for the bill didn’t realize (as so often happens) what they were voting for (shades of the shameful 2002 vote to hand over to President Bush the power to decide on war with Iraq).”
Richard Russell, “Richards Remarks,” dowtheoryletters.com, March 27 2007
After President Wilson signed the Federal Reserve Act into law in 1913, he reportedly said, “I am a most unhappy man, I have unwittingly ruined my country…a great industrial nation is now controlled by its system of credit…the growth of the nation, therefore, and all of our activities are in the hands of a few men…” Thus we have an early statement about the threat to “democracy” occasioned by The Fed.
Market Intervention, Data Manipulation & The Cartel “End Game”
As Richard Russell points out the creation of ever-increasing debt and interest payments is unsustainable. Thus there will inevitably be a Day of Reckoning, a Day which is fast approaching.
In order to stave off the Day of Reckoning (which, we reiterate, is coming mainly as a consequence of The Fed’s dramatic monetary inflation and “easy credit” policies), and to implement its own ‘End Game’, the Fed-led Cartel* of Key Central Bankers and Favored Financial Institutions has created, and for the past several years has operated, an extraordinary “financial regime” built on dramatically increasing trillions of dollars (nearly $600 trillion as of December, 2008 - - see www.bis.org (path: statistics>derivatives>Table 19 and ff.) of Dark OTC Derivatives available for the manipulation of major markets ranging from Precious Metals to Crude Oil and Energy, to Equities and Strategic Commodities (see Deepcaster’s July, 2008 Letter at www.deepcaster.com).
To be sure The Cartel’s massive and increasing use of derivatives to intervene (Overtly and Covertly via Primary Dealers) in a wide variety of markets is fraught with danger (e.g. through actual and prospective counterparty failure as we are now seeing, as well as prospective Systemic Failure). Deepcaster, Warren Buffett and Jim Sinclair have pointed out the dangers of OTC derivatives. Indeed, Buffett calls them “toxic” … ”weapons of financial destruction” and Sinclair has aptly described the financial system as “sitting on a… trembling mountain of derivatives … think Weimar Republic.” Unfortunately, Deepcaster, Jim Sinclair, and Warren Buffett are correct.
Indeed, the evidence indicates that The Cartel has developed a nefarious “End Game” plan, an overview which we describe below.
The Crisis Intensifies - – The “End Game” Implementation Begins
Deepcaster has described The Cartel’s apparent ‘End Game’ in detail in its June, 2007 Letter “Profiting From the Push to Denationalize Currencies and Deconstruct Nations “ and its August 13, 2006 Alert “Massive Financial-Geopolitical Scheme Not Reported by Big Media” posted in the “Archives” at www.deepcaster.com. Fortunately, a Bill was introduced in the U.S. Congress (H.Con.Res.40), which opposes this nefarious scheme.
Nevertheless, consider the following key aspects that have been implemented through various departments of the U.S. government agencies and NGOs.
Data Manipulation
Masking the True State of the Economy and Financial Markets, is another aspect of The Cartel Regime – Data Manipulation.
For example, www.shadowstats.com calculates the Real U.S. Consumer Price Inflation was over 10% annualized from 2006 through 2008 and is about 5.5% in 2009 contrary to Official Numbers which show it at negative 3% (as of the September 16, 2009 Shadowstats report). Real U.S. Unemployment is now 21% (according to September 4, 2009 report)! And Real U.S. GDP is at a negative 6% (August 27, 2009 report)!, while real M3 (monetary creation) is running at about 4% annually (September 12, 2009 report)!, all according to the quite credible calculations of shadowstats.com.
Shadowstats.com calculates the numbers as they were calculated prior to the “gimmicking” of Official Statistics that became widely implemented beginning in the 1980s and early 1990s.
We emphasize, Real U.S. GDP “growth” is a negative number -- about a negative 6%, according to shadowstats.com, as opposed to Official Figures showing just a negative 4%.
That the U.S. economy (about 25% of the international economy) is headed in the direction of Serious Stagflation (a Kondratieff Winter) is pretty clear from the very credible shadowstats.com statistics cited above. Predictions of Recovery any time soon are a combination of Media Hype and Fed “Communications policy”.
As well, the U.S. Dollar’s purchasing power has declined over 30% in the past half-decade and it appears that The Cartel expects (and likely are even pushing) the U.S. Dollar to go into further and further decline, over the medium term, and to continue their other policies, until there is a “No-Salvation, No-Return Systemic Crisis.”
It would appear that The Cartel-charted-course toward a Stagflationary Recession/Depression, and thus toward the further implementation of their “End Game,” is on course. For more details on the ‘End Game’ see the articles referred to above.
Indeed, the official and Agency Data Manipulation serves to conceal painful Economic and Financial Realities from the public. One Reality that is still partially concealed is the consequences of the U.S. Dollar Destruction for the public.
The ongoing destruction of the U.S. Dollar is a de facto confiscation of retirees and Investors lifetimes (and indeed in some cases Generations) of wealth-building.
So it was no surprise last March 25, 2009 when Secretary of Treasury Geithner indicated he was “quite open” to Chinese proposal for gradual development of a global reserve currency. Though he later backtracked somewhat from these statements the initial statement is quite revealing.
In addition to the de facto Power and Wealth Grabs of U.S. Dollar Destruction and Data Manipulation, The Fed continues to grab power in other Financial Arenas.
It is no surprise that in September, 2009 Fed Chairman Bernanke moved ahead with another Fed Power grab, by reaching out to de facto control regional and state banks by controlling Bank Executive’s Pay.
“Ben Bernanke isn't waiting for Congress to expand the Fed's regulatory powers. Instead, he wants to put regulators directly inside banks to monitor (and possibly reject) pay packages.
The new proposal from the Fed requires a vote by the central bank's board but no congressional approval.
If enacted, pay for tens of thousands of bank employees nationwide would require approval from the Federal Reserve, empowering the Fed to reject any compensation policies it believes encourage bank employees to take too much risk…
Bernanke's proposal would, for the first time, inject government regulators deep into compensation decisions traditionally reserved for the banks' corporate boards and executives.
Though it wouldn't set salaries, the proposal would enable the Fed to review and amend each bank's salary and bonus policies…
Ron Paul, Republican of Texas, says the Fed is already doing too much.
“The Fed not only creates our problems, they perpetuate the problems” and the sooner we all understand that, the better, says Rep. Paul.
According to figures posted at the politician’s Web site, Paul’s bill to audit the Federal Reserve (HR 1207) now has 290 co-sponsors and a companion bill in the Senate (S 604) has already attracted 25 co-sponsors.”
Bernanke Would Control Pay for Thousands
Julie Crawshaw, Newsmax.com September 21, 2009
Fortunately, as the articles above note, Members of Congress have begun to resist.
In addition to Ron Paul’s broadly supported Audit the Fed Bill, support is growing in the Senate to weaken the Fed.
“WASHINGTON – Consensus is building in the Senate for legislation that would significantly weaken the Federal Reserve by stripping its power to oversee banks and hand that job to a single federal bank regulator.
The proposal by Senate Banking Committee Chairman Christopher Dodd to merge federal prudential oversight into a single regulator differs from a plan by President Barack Obama. But Democratic aides say the proposal is gaining traction among Dodd's colleagues who think the Fed didn't do enough to prevent the current market crisis.
Sen. Richard Shelby of Alabama, the top Republican on the banking panel, hasn't publicly endorsed the deal and a spokesman said he still was reviewing his options. But he has made no secret of his displeasure with the Federal Reserve.
"If you look at the record here of the failure of the regulatory bodies, all roads seem to lead to the Federal Reserve," Shelby said…
As part of a sweeping reform effort in response to last year's financial crisis, Obama has proposed empowering the Fed further by tasking it with deciding whether a financial institution has grown so big and over-leveraged that its failure could bring down the entire economy.”
Senate bill could weaken the Fed
Anne Flaherty, Associated Press Writer, September 21, 2009
Clearly, the Obama Administration’s proposal to further empower The Fed is a recipe for disaster for Investors and citizens alike.
Fortunately and in light of all of the foregoing Deepcaster has developed a Strategy for Protecting Wealth as well as Profiting and notwithstanding near-term outcomes of the battle over Fed Power:
The Strategy – Guidelines for Identifying Opportunities for Profit and Protection
- Get the Real Data. As many Investors suspect, Crucial Official Government and Agency Economic and Financial Data are of highly questionable validity. The Data set forth above from shadowstats.com is a good starting point.
Educate yourself about the realities of the marketplace using Alternative Data Sources such as Deepcaster, Gold Anti-Trust Committee (www.gata.org), and shadowstats.com. Gathering and staying attuned to authentic information regarding the marketplace can save one much financial grief as well as positioning one for profit.
- Take Account of both Overt and Covert Cartel Intervention. Many of these same investors who suspect Official Statistics also rightly suspect that the private-for-profit U.S. Federal Reserve and/or Central Banks overtly and covertly manipulate Major Markets. But they might not be aware that covert Market Interventions and Data Manipulation are likely far more pervasive than generally believed, as detailed in Deepcaster’s articles mentioned above.
As well, such investors may not have thought systematically about how one copes with and profits from such Intervention and Data Manipulation.
Consider one example of Cartel Intervention: the Traditional and Legitimate Safe Haven from inflation, deflation, and risk, is Gold. Yet, Gold has, during the recent periods of extreme financial market turmoil, been taken down in price from its highs of over $1000/oz down to around the mid-$700 level (e.g. in 2008) when it should have skyrocketed.
In early March, 2008 Gold was over $1000/oz. when the Bear Stearns Crisis revealed the fragility of the Financial System. Gold should surely have skyrocketed then. Instead, it was brutally taken down. Were its price not manipulated, Deepcaster’s view is that its price would be over $3,000.00 per ounce today.
Deepcaster and others, including the Gold AntiTrust Action Committee, have offered considerable evidence that the Cartel* of Central Bankers and Favored Financial Institutions are the culprits behind these dramatic and devastating Takedowns. See Deepcaster’s Alert of 12/25/07 “A Strategy for Profiting from Cartel Intervention in Gold, Silver, Crude Oil and Other Tangible Assets Markets” in the Alerts Cache at www.deepcaster.com.
But there is a Profitable Refuge from Market Intervention and Data Manipulation. That Profitable Refuge lies in the Strategy described in the aforementioned Alert, certain characteristics of which we outline here:
- Recognize that the “Buy and Hold” strategy rarely succeeds anymore. The Eminence Grise of Newsletter writers, Harry Schultz perhaps put it the best when he stated that “buy and hold no longer works anymore, even with Gold.” Recent Market Developments should suffice to demonstrate this principle!
- Track the Covert Interventionals as well as the Technicals and Fundamentals and Overt Interventionals. Tracking the Footprints, as it were, of the Covert Interventionals (e.g. the Repo and TSLF Pools) daily can often, but not always, give one excellent clues about The Cartel’s next likely Interventional Move - - such clues are essential to preserving wealth and making profits. Deepcaster’s tracking of The Interventionals, for example, allowed him to recommend five short positions going into September, 2008, (i.e. before the Market Crash) all of which he has subsequently recommended be profitably liquidated. Deepcaster’s recent article “Cartel Angst Equals Investor Advantage” (9/18/2009 can be found in the ‘Articles by Deepcaster’ at www.deepcaster.com) lays out a specific strategy for use in investing and trading in the heavily manipulated Gold and Silver Market.
- Perhaps most important, be prepared to go both long and short Major Market Sectors - - long near the bottoms of Interim Takedowns and short near Sector Tops. The Interventionals are essential to helping identify these tops and bottoms. In Deepcaster’s view, it will be increasingly difficult to achieve a net profit for one’s portfolio if one is unwilling and/or unable to “go short” as well as “long”.
The Blossoming of the 200% and 300% (and other) leveraged ‘short’ and ‘long’ ETF’s described above provide a superb opportunity to go short and long with ease, but not, as we explain in recent articles, without risk.
- Be aware of and Active in the overall Geopolitical Landscape in order to gain an adequate understanding of how that Landscape might affect the present and future direction of the Markets. It is essential that one understand the motivations of the major players in the market and the resources at their disposal.
For example, a Major Motivation of the U.S. Federal Reserve and other key Central Banks is the protection and enhancement of the legitimacy of their Treasury Securities and Fiat Currencies as Measures and Stores of Value. Therefore, one can understand that one of their Major Goals will be to attempt de-legitimize Gold, Silver and the Strategic Commodities, including especially Crude Oil, as Stores and Measures of Value. With this in mind, the periodic takedowns of Gold and Silver and, since July, 2008, of Crude Oil, become understandable. Moreover, such an insight applied daily to the market can result in a tremendous edge in understanding market performance, present and future.
Moreover, regarding the assets at The Cartel’s disposal, if one tracks the Repurchase Agreement and TSLF Pools regularly, as Deepcaster does, and is aware of the other Interventional tools that The Cartel has at its disposal, then one gains a considerable edge.
- Finally, Hard Assets Partisans have the opportunity to become involved in Political Action to diminish the power of The Cartel. It is truly outrageous that the average unsuspecting citizen, and prospective retiree, can and does put his hard won assets in Tangible Assets and/or Retirement Accounts only to have those assets effectively de-valued by Cartel Takedowns, U.S. Dollar Devaluation and other Cartel actions. This is extremely injurious to many average citizens in many countries who are saving for the rainy day or retirement and have their retirement and/or reserves effectively taken from them. In order to help prevent this and similar outrages, we recommend taking three steps:
- Become involved in the movement to Audit and then abolish the private-for-profit U.S. Federal Reserve as Deepcaster, former Presidential candidate Rep. Ron Paul, and legendary investor Jim Rogers, all have advocated. The ‘Audit The Fed’ Bill is H.R. 1207 (and has over 200 co-sponsors) and S604 in the Senate; and The Abolish The Fed Bill is H.R. 2755. www.carryingcapacity.org is a nonprofit organization which actively supports these bills.
- Join the Gold AntiTrust Action Committee, which works to eliminate the manipulation of the Gold and Silver markets (www.gata.org). GATA is a nonprofit organization, which makes a great contribution by gathering evidence regarding the suppression of prices of Gold, Silver and other commodities.
- Work to defeat The Cartel ‘End Game.’ Deepcaster has laid out the evidence regarding the Ominous Cartel “End Game” in “Coping with Power Moves in the Cartel's 'End Game' “ (04/24/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com. Clearly The Cartel is sacrificing the U.S. Dollar to prop up Favored International Financial Institutions and to maintain its power. But this sacrifice cannot continue forever. See Deepcaster’s July 2008 Letter in the ‘Latest Letter’ Archives at www.deepcaster.com.
Conclusion:
If this aforementioned Strategy is employed effectively, it can result both in an increasing Core Position in Gold and Silver, and in considerable profit along the way.
Additional insights and details regarding this Strategy, which are essential to profiting from The Cartel’s Policies, are laid out in Deepcaster’s article of 3/06/09 entitled “Investor Advantage: Revisiting The Cartel’s ‘End Game’ ” in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
Protection and profit require Proactivity and attention to the Interventionals, Fundamentals and Technicals, not “Buy and Hold.” We reiterate, “Buying and Holding” for the long term rarely succeeds anymore as current market conditions attest.
Indeed, the Key Point of the Strategy for Protection and Profit is careful attention not only to the Fundamentals and Technicals but also to the Interventionals. These Overt and Covert Cartel-generated Interventions have the power to move markets as those who study the matter can attest.
Thus, the Key to Profit and Protection is a Strategy: Successful Investors must become Long-Term Position Traders, with their trading choices informed by the Interventionals, as well as the Fundamentals and Technicals. Moreover engaging in the Actions suggested above can help prevent The Cartel’s obtaining Superpower status, and aid in achieving wealth protection and profits as well.
The Rampant Monetary Inflation reflected in M3 and in the various bailouts and loans is measured in the trillions of Dollars. And this tremendously increased monetary base is available to temporarily inflate the paper value of the Equities and other Markets, when money managers first think the markets have a chance for a sustained (for a few months only) Rally, and, when The Cartel Interventional Regime “agrees” with them.
Thus, given that the financial system and key heavyweight investors are awash with printed and borrowed money, after a brief correction, certain Key Sectors should again explode upward until the long-term negative Economic and Financial Fundamentals drag them down again. Of course, this will not happen in one fell swoop, it will happen in Spurts, the forecast timing of which we set forth in our Latest Letter and Alerts available at www.deepcaster.com.
Until demonstrated otherwise, a continuation of the recent rally is nonetheless a ‘Bear Market Rally’. Such Bear Market Rallies are treacherous and often rapidly reverse themselves, turning gains into losses. Thus, it is especially important to monitor the Interventionals, as well as the Fundamentals and Technicals, very closely.
Source: Bank for International Settlements
www.bis.org, Path: Statistics > Derivatives > Table 19
Best Regards,
By DEEPCASTER LLC
www.deepcaster.com
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© 2009 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.
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