Investors Profitably Surmounting Plutocratic Perfidy
Stock-Markets / Financial Markets 2011 Aug 19, 2011 - 03:09 PM GMTBy: DeepCaster_LLC
“Tuesday’s Fed meeting was sad. They failed to do what wise men urged, ie, cut the fat rate Fed pays banks that put reserves with Fed to zero. That would have caused banks to remove reserves & free them up for lending. Not doing this reveals banks control Fed & Fed is a banks cartel. That’s why Thomas Jefferson said he feared banks more than standing armies.”
Harry Schultz, The Big Picture, 8/11/11, The Aden Forecast
Laser-like, Legendary Investor and Newsletter Writer, Uncle Harry Schultz homes in on the Perfidy inherent in the private for-profit Fed’s policies.
Make no mistake The Fed’s policy of continuing to pay the Banks 25 BPS “interest” merely for keeping their Reserve Capital on deposit at the Fed is an anti-jobs, anti-Economic Recovery Policy.
Small businesses in the U.S. are starved for capital because the Mega-Banks are not significantly lending to them. But Small Businesses are the Primary Job Creators. No Jobs, No Economic Recovery.
Thus it is clear whose interests the Fed serves – those of its Mega-bank Shareholders.
And not just those headquartered in the USA. The GAO Audit revealed that during the 2007 – 2009 Financial Crises, the Fed loaned $Trillions to foreign banks.
So much for the Fiction of working for the benefit of American Citizens, or Investor-Citizens of any country for that matter.
Geopolitically, there are three Solutions one of which is enunciated by Congressman Dennis Kucinich (upon which we earlier commented). Deepcaster’s proposal in his Article – “Antidote to Globalists’ Threat to U.S. Dollar-Gold Investments (11/18/10)” and that enunciated by Jim Rickards as referenced below.
“Look! Up in the airwaves! It's a bird! It's a plane! No, it's ... Jim Rickards, the Superman of geopolitical analysis, who spoke at GATA's London conference and was interviewed on CNBC last night about the European debt problem and gold. Insolvent banks should be nationalized, their bondholders and stockholders wiped out, their bad loans liquidated, and then the banks reprivatized, Rickards said. Otherwise, he added, society will spend many years working just to make the banks whole. Rickards added that currencies again will have to be backed by gold and that the United States and the Euro zone will do well in this regard, having large gold reserves.”
“Liquidate the banks or endure years of slavery, Rickards tells CNBC”
Chris Powell, gata.org, 8/15/11
Any of the foregoing three Solutions (or some combination) could work, but all would be politically difficult to achieve, and none answers the question: What is an individual Investor to do?
As for the Individual Investor, the foregoing raises the question: If Fed Policy (e.g. 25 BPS Interest Payments) clearly results in a Non-Recovery, and a continuation of high unemployment and a deteriorating Economy then what is The Fed’s End Game?
The Owner and Managers of The Fed are not stupid. They must have an ‘End Game’ Plan And (our Topic today) if there is such an ‘End Game’ Plan, what can Investors do to Cope and Profit?
Alex Newman, and World Bank President Robert Zoellick give us a Clue:
“The Federal Reserve has been a nightmare for the American people. It inflates the money supply, thereby devaluing already-existing money and placing a massive hidden tax on the people via rising prices. It also uses its monopoly power to cause interest rates to go up or down, usurping the rightful place of the market and causing massive malinvestment and generally an improper and unproductive allocation of resources…
The Fed also causes the boom-and-bust cycle through its manipulations of the currency and credit supply. It serves as the government’s partner in perpetually expanding the “welfare-warfare state,” allowing the state to spend far more than it could ever hope to reasonably raise through direct taxation. And of course, the fact that all Federal Reserve notes enter the economy as debt with interest attached (but never created) has led to a situation where it is literally mathematically impossible to pay off the debt. In sum, the consequences of such a system have been disastrous for average Americans — hence the growing calls to audit and even end the Fed…
But now, imagine such a system at the global level. And it isn’t just a mental exercise; the global central bank is already emerging. As bad as the Fed has been for America — and indeed the world — a similar system at the international level would be far worse. Disaster might even be an understatement…
International Liquidity and Inflation
One of the most serious threats posed by a global central bank and world fiat currency is the fact that it would allow the emerging planetary regime to print its own money and finance its activities independently. That means wealth could be secretly siphoned away from all of humanity to pay for armies, tax collectors, courts, bureaucracies, law enforcement, wealth redistribution, propaganda, and much more. With no limits. But to advocates of such a system, that is one of its primary benefits…
It is ironic that the likely imminent collapse of the world’s current fiat “reserve currency” is being used as an excuse to implement a global fiat currency. But it is extremely serious. Escaping the elites’ clutches would become almost impossible as wealth is steadily transferred from humanity to the banking oligarchy and its ever-expanding global government. And so the scheme must be prevented.” (emphasis added)
“The Emerging Global Fed”
Alex Newman, thenewamerican.com, 9/16/1
“Fifth, the G20 should complement this growth recovery programme with a plan to build a co-operative monetary system that reflects emerging economic conditions. This new system is likely to need to involve the dollar, the euro, the yen, the pound and a renminbi that moves towards internationalization and then an open capital account.”
World Bank President Robert Zoellick, Financial Times, 11/7/10
The Cartel* ‘End Game’, as Deepcaster has named it, apparently involves continuing to Stealthily transfer ever more Wealth and Power to The Cartel at the expense of Investors/Citizens around the world. (For more details, see “Coping with the Superpower Cartel Threat” (1/30/09) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.)
In this connection we must consider 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 2008 financial crisis. That is, a Major Negative Consequence of the Fall, 2008 Market Crash was a Taxpayer-Funded 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, without having to take any ‘Haircut’ on their debased Assets.
One result was that Goldman survived and reportedly has paid an average of $500,000 plus to each employee in compensation.
Meanwhile, the U.S. Consumer/Taxpayer (and often Investor/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 and Small Business Owners, however, have not been “saved” at all.
One, of several, manifestations of this ‘End Game’ is The Globalists Elites Push for Regional Entities (e.g. the Eurozone, North American Union, and, now, the FAST/TTP/Global Entry Programs for the Mexico/USA/Canada Borderless Regional Entity described in an earlier article) and Currencies, and, ultimately a Global Currency, which they would control for their own benefit. Of course, this would ultimately entail the destruction of the U.S. Dollar as the World’s Reserve Currency, and the Destruction of other National Currencies and National Sovereignties and Economic and Individual Freedoms as well.
Indeed the (World Bank President) Zoellick as quoted above, already assumes the U.S. Dollar will be destroyed as the World’s Reserve Currency and supplanted by a “5 Currencies” Currency.
So the question is: Do investor-Citizens in Sovereign Nations around the World want the Economic, Political, and Personal Freedom of National Currencies whose viability could be secured by being linked to Gold – ‘Gold-Freedom’ we call it—or will they submit to Subservience to Unaccountable Global Mega-Bankers via a “Global Currency” and Regional Political, Economic, and Monetary Entities?
And what does the Individual Investor do to profitably surmount this Plutocratic Perfidy?
Consider, first, that it is increasingly obvious ‘The End Game’ is already being implemented. A Key Component of that ‘End Game’ has for years been, and still is, The Cartel’s ongoing Regime for Suppressing Precious Metals Prices.
*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, 2009, Special Alert containing a summary overview of Intervention entitled “Forecasts and December, 2009 Special Alert: Profiting From The Cartel’s Dark Interventions - III” and Deepcaster’s July, 2010 Letter entitled "Profit from a Weakening Cartel; Buy Reco; Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar & U.S. T-Notes & T-Bonds" in the ‘Alerts Cache’ and ‘Latest Letter’ Cache at www.deepcaster.com. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org, including testimony before the CFTC, 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.” Attention to The Interventionals facilitated Deepcaster’s recommending five short positions prior to the Fall, 2008 Market Crash all of which were subsequently liquidated profitably.
The Cartel attempts to suppress Precious Metals Prices because increasingly widespread recognition of Gold and Silver as the Ultimate Stores and measures of Value, tends to delegitimize The Cartel’s Treasury, Securities and Fiat Currencies, thus diminishing Cartel power.
But, simultaneously, Gold and Investors in Gold (and Silver) have been fighting back, fighting ultimately, not only for profit and protection but also for their economic, political and personal freedom, and increasingly effectively.
And while both sides continue to win battles, the outcome of this Very Important War is yet to be determined. But the Battles are quite important.
For example, GATA, Deepcaster and Others have widely publicized reports that certain Cartel-linked Major Gold (and Silver) Repositories and ETF’s may not have the actual Physical Metal they say they do (the physical metal having been sold into the Market to help suppress the price). This has led to a skyrocketing demand for Delivery and Possession of Physical Gold and Silver, with consequent upward pressure on the Precious Metals Prices.
In sum, notwithstanding ongoing Cartel Price Suppression Attempts, Gold (and Silver) has moved to record nominal highs.
Thus the Key Question is: Has The Cartel lost control of Gold and Silver prices? Or, if not, is it about to?
Since we last wrote there has been a remarkable upsurge in (wise) Buyers demanding Delivery of Gold and Silver, and especially Delivery of Silver from the Comex. (Deepcaster’s most recent Alert contains a Comex Silver Supply Status Report.)
Because Precious Metals Investors are increasingly demanding Delivery and Possession of Precious Metals, and are no longer satisfied with the Paper Promises of certain ETFs and Ostensible Repositories, Gold and Silver have been trading at or near record highs lately.
In sum, the Cartel has reached a Climacteric in the Form of a Silver and Gold SHOWDOWN.
Indeed, this SILVER (and Gold) SHOWDOWN is reflecting a serious CRUNCH for the CARTEL. The prices of “Paper/Electronic” Securities and Certificates of Precious Metals Ownership are relatively easy to manipulate. BUT, Prices for the Physical Metal are much tougher to manipulate, especially in light of Gold-and-Silver-price-positive developments.
Nonetheless, we expect The Cartel to continue to launch Takedown Attacks on Gold and Silver including a Major One soon. The success of these attacks are increasingly problematic for The Cartel, however.
The Cartel has not been in so tough a position in many years.
The Cartel is losing Clout…but it still has some, as the late April, early May, 2011 Takedown demonstrates.
In sum, our view is that although The Cartel has been significantly weakened in recent months, it has not been entirely vanquished.
Consider that if The Cartel had been entirely vanquished Precious Metals Prices would already be much higher than they are now. (The all time high (1980) Gold Price adjusted for Official inflation is about $2,400/oz. Adjusted for Real Inflation per Shadowstats.com**, it should be about $7,700/oz.)
For Deepcaster’s latest Forecast regarding Gold and Silver prices, see his latest Alert in the ‘Alerts Cache’ at www.deepcaster.com.
Whatever the near-term future for Gold and Silver bullion and share prices, the Macro-Battles continue.
For example, a few years ago the Globalists launched a (now-failed) attempt to supplant the U.S. Dollar with the Amero.
However, the failed attempt to launch an “Amero” (the Cartel’s desired Currency for a Merged Mexico, the U.S. and Canada) has refocused the Globalist’s emphasis to creating a “Banco” as an outgrowth of the De facto World Currency which already exists – IMF-SDR’s. And Globalist Zoellick has also supported a World Currency as, initially, an amalgam of 5 Currencies (see above).
But instituting a Global Currency is but one of several aspects of the Cartel End Game. For a detailed description of other Aspects, see Deepcaster’s 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 a recent session of the U.S. Congress (H. Con. Res. 40), which opposes this nefarious scheme.
So how can Investors-Citizens Protect and Profit from, and ultimately defeat, this End Game?
We Citizen-Investors now have a unique Opportunity to not only make an investment which will enhance our wealth protection and profit maximization efforts, but also to “vote” with our investments for our own economic, personal, and political freedom.
Our Primary Investment “Vote” should be for the Ultimate Monetary Metals Gold and Silver: Buy Physical any time (but the form of physical matters – see our recent Alerts), and quality Gold and Silver Mining Shares on the Dips.
As to Profitably surmounting the Plutocrats Perfidious ‘End Game’, consider these Guidelines:
Strategy for Identifying Opportunities for Profit and Protection in light of The Cartel’s End-Game
With Monetary and incipient Economic Hyperinflation and Equities Markets Deflation looming in our Future, typical Equities Market Opportunities will be on the short side as we move into 2012.
But further Equities Markets Take-downs should provide Magnificent Buying Opportunities in Key Sectors.
Above all, superb Opportunities will continue to exist in Gold and Silver and we urge Gold and Silver Bullion and Mining Shares Purchases. However, unfortunately, maximizing Protection and Profit in the Precious Metals does not reliably lie in Straight-out Precious Metals Purchases or Mining Shares Purchases (i.e. without regard to Timing or Asset Form). Indeed maximizing Profit and Protection via Precious Metals purchases, or indeed in the general Equities Markets, requires a Strategy.
- Invest in Gold and Silver (and key Strategic Commodities), BUT, according to a Strategy designed to minimize the Effects of periodic Cartel Price Suppressions of Gold and Silver (and key Equities Sectors and Commodities), and, indeed, to Profit. Deepcaster has designed such a Strategy described in the following articles: “Defeating the Cartel... With Profit, Part 2” (6/19/2009) and “Defeating the Cartel... With Profit, Part 1” (3/28/2008) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com. And Deepcaster recently recommended two Precious Metals investments, both of which are resistant to Cartel Price Takedowns.
- Take Account of overt and covert Cartel* Interventions; that is, take account of The Interventionals as well as the Fundamentals and Technicals.
- Make decisions based on Real Data, such as that provided by Shadowstats.com**, gata.org and deepcaster.com, not on bogus Official Statistics. See Deepcaster's articles: "Opportunities to Profitably Escape Paper "Wealth" into 2011" (10/7/10) and “Surmounting Deception, Distortion & Intervention” (7/17/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
- Implement an Investment and Personal Protection Strategy designed to cope with, surmount, and profit from The Cartel’s ‘End Game’. See Deepcaster's articles: “Profit, Protection Despite Cartel Intervention -- Update“ (12/22/10), “Surmounting The Armageddon Scenario & Cartel ‘End Game’” (2/26/2010), “Crunch Time for the Cartel“ (11/25/2009), “Surmounting the Cartels' 'End Game' Juggernaut“ (9/25/2009), and “Coping with Power Moves in the Cartel's 'End Game'” (4/24/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
- Implement a Strategy Designed to Profitably Escape Paper ‘Wealth’ and to Profit. Deepcaster’s Strategies are described in “Macro-Trends – Keys to Macro Profits in 2011” (1/6/11) and “Opportunities to Profitably Escape Paper "Wealth" in 2010” (3/12/2010) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
- Become involved in Political action designed to blunt the Cartel’s Superpower-Threat and derail the Cartel’s ‘End Game’. See Deepcaster's articles: “Surmounting Cartel Advantages” (5/08/2009) and “Coping with the Superpower-Cartel Threat!” (1/30/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com. 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 (and the recent U.S. Dollar bounce) The Cartel is sacrificing the U.S. Dollar over the long-term to prop up Favored International Financial Institutions and to maintain its power. But this sacrifice cannot continue forever. See “Avoiding The Trip to Q.E. Hades” (10/21/10) and Deepcaster’s July 2008 Letter in the ‘Latest Letter’ Archives at www.deepcaster.com.
- For Americans, become involved in Political Action to Audit the Fed and U.S. Gold Reserves (see below) and stop the Amnesty (a de facto Border Elimination) of 25 to 30 million Aliens now illegally in the U.S. A. When this Amnesty was proposed in 2007, Robert Rector of the Heritage Foundation calculated it would cost $100 billion annually (net of Taxes paid by the Illegals) for Health Care, Education, Infrastructure, and Support Services. A recent estimate (see www.cis.org) puts this cost closer to $300 billion. The cost now would be even higher due to increased Alien population growth and entitlements in the new Health Care Bill. Carrying Capacity Network (www.carryingcapacity.org) is a nonprofit organization which actively supports Auditing the Fed and opposes the Illegal Alien Amnesty. With 125,000 work visas being issued to Legal Immigrants each month American Taxpayers should not have to suffer the additional burden of supporting Illegals, and American workers should not have to suffer the consequent wage depression and job loss.
Hard Assets Partisans have the opportunity to become involved in Political Action to diminish the power of The Fed-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.
- Develop an Investment and Trading Strategy designed to address all of the above. See Deepcaster's articles: “2011 Profit & Protection Essentials; Bubbles to Pop & Bullish Sectors” (12/30/10), “Avoiding Wealth Confiscation... With Profit!” (2/05/2010), “Profiting in "the whipsaw year" 2010” (1/08/2010), “Middle Class Outrage, Solutions, & The Markets” (12/11/2009), and “Protect and Profit Before the Coming Storm” (11/13/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
- Make Select High Yield Equities Investments whose probable Appreciation plus Yield Exceeds Current CPI, now at 11.21% per Shadowstats.com**. Deepcaster’s High-Yield Portfolio contains 6 Recommendations with Recent Yields of 18.5%, 10.6%, 26%, 8%, 6.7% and 15.6% when we recommended them.
- Work for Local, National and International Solutions, NOT Global ones.
Best regards,
By DEEPCASTER LLC
www.deepcaster.com
DEEPCASTER FORTRESS ASSETS LETTER
DEEPCASTER HIGH POTENTIAL SPECULATOR
Wealth Preservation Wealth Enhancement
© 2011 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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