Deepcaster: Biggest Bubble About to Burst!

May 19, 2013 By 13 Comments

bubblesSubmitted by Deepcaster:

“Nothing is normal: not the economy, not the financial system, not the financial markets and not the political system.  The system remains still in the throes and aftershocks of the 2008 panic and the near-systemic collapse, and from the ongoing responses to same by the Federal Reserve and federal government.  Further panic is possible and hyperinflation is inevitable.   What continues to unfold in the systemic and economic crises is just an ongoing part of the 2008 turmoil.  All the extraordinary actions and interventions bought a little time, but they did not resolve the various crises.  That the crises continue can be seen in deteriorating economic activity and in the panicked actions by the Federal Reserve, where it proactively is monetizing U.S. Treasury debt at a pace suggestive of a Treasury that is unable to borrow otherwise. -John Williams, ShadowStats

It had to happen. And now it has begun. The very biggest bubble in financial history has begun to deflate. And over the next few months, we expect that deflation to accelerate and morph into a bursting. [Read more...]

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Deepcaster: Market Forecasts Nuggets

May 13, 2013 By 4 Comments

gold nugget“I am on record here as stating that the entire stock market rally is nothing but a Federal Reserve induced bubble brought about by artificially low interest rates starving investors for yield elsewhere. The Fed, along with the Bank of Japan and the ECB I might add, are determined to corral investors and herd them, unthinking like cattle, into equities; the goal being to create an atmosphere of general euphoria towards the economy boosting consumer confidence in the hopes of inducing them to take on more debt and spend.
This is akin to building a towering skyscraper on a foundation of PLAY-DO. It may look wonderful and draw gasps of admiration but it has no stability and will not be able to withstand any external shocks.” -Dan Norcini

Perceptive, Independent Market commentators like Trader Dan Norcini generally agree that The Fed’s (and Bank of Japan and European and other Central Banks) Easy Paper Money Policies are Creating An Asset Bubble in the Equities Market that is not justified by Economic Fundamentals.
And they generally agree that it can not last.  We agree.
That raises the Key Question of which Assets to Invest in Now, and “When the Bubble Will Burst,” questions which we address here: [Read more...]

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Deepcaster: Profiting from These Coming 4 Crises

May 5, 2013 By 1 Comment
Image: Jonny O'Callaghan

Image: Jonny O’Callaghan

Submitted by Deepcaster:

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.
Crisis #2: Bank Deposits, some brokerage accounts, and 401(K)s, and IRAs are no longer safe stores of wealth.
Crisis #3: Markets in Paper Gold and Silver (e.g., LBMA and Comex) are increasingly discredited.
Crisis #4: Equities Markets are increasingly artificially elevated. [Read more...]

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Deepcaster: Profit, Protection, Despite Cartel Intervention – April 2013 Update

April 27, 2013 By 20 Comments

Submitted by Deepcaster:

“When the Fed’s fire hoses started spraying an elephant soup of liquidity injections in every direction and its balance sheet grew by $1.3 trillion in just thirteen weeks compared to $850 billion during its first ninety-four years, I became convinced that the Fed was flying by the seat of its pants, making it up as it went along. It was evident that its aim was to stop the hissy fit on Wall Street and that the threat of a Great Depression 2.0 was just a cover story for a panicked spree of money printing that exceeded any other episode in recorded human history….

“Because they stopped it in its tracks after the AIG bailout and then all the alphabet soup of different lines that the Fed threw out, and then the enactment of TARP, the last two investment banks standing were rescued, Goldman and Morgan [Stanley], and they should not have been. “Therefore, the idea that they were on death’s door does not stack up. Even if they had been, it would not make any difference to the health of the financial system. …“The banks quickly worked out their solvency issues because the Fed basically took it out of the hides of Main Street savers and depositors throughout America…. [Read more...]

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Deepcaster: Mammoth Market Force Prospects As Fed Dumps 500 Tons of Paper Gold

April 20, 2013 By 24 Comments

Submitted by Deepcaster:

“On Friday, April 12, the Fed’s agents hit the market with 500 tons of naked shorts. Normally, a short is when an investor thinks the price of a stock or commodity is going to fall. He wants to sell the item in advance of the fall, pocket the money, and then buy the item back after it falls in price, thus making money on the short sale. …with naked shorts, no physical metal is actually sold…
“Consider the 500 tons of paper gold sold on Friday. Begin with the question, how many ounces is 500 tons? There are 2,000 pounds to one ton. 500 tons equal 1,000,000 pounds. There are 16 ounces to one pound, which comes to 16 million ounces of short sales on Friday.
“Who has 16 million ounces of gold? At the beginning gold price that day of about $1,550, that comes to $24,800,000,000. Who has that kind of money? [Read more...]

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Deepcaster: Surmounting Mainstream Financial Media Spin, Distortion & Censorship

April 13, 2013 By 4 Comments

MOPESubmitted by Deepcaster:

It is understandable that the Powers-that-be would want to suppress Price Inflationary Signs, because alarmed Investors would otherwise run en masse to Inflation Protective Assets, such as Gold and Silver, and Food Commodities, and enlightened Investors would also simultaneously run away from the Fed’s and other Central Banks’ depreciating Fiat Currencies and Treasury Securities.
The bottom line is that the $10 Trillion Injected by the Central Banks in the last few years is bound to be increasingly Price Inflationary.
And it already is.

[Read more...]

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Deepcaster: Riding the Big Profits Kahuna – How Much Longer?

April 6, 2013 By 6 Comments

metalsSubmitted by Deepcaster:

The Equities and Bond Markets have been riding The Big Kahuna of Fed, ECB, Bank of England (and now the Bank of Japan’s) Q.E. et al. for several Years Now.
But for how much longer can Investors expect to ride these Market Boosting Central Bank Injections and other Interventions before Disaster strikes and the use of QE reveals itself to be clearly Counter Productive?
Increasingly, these Interventions are seen to be Disasters: [Read more...]

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Deepcaster: Major Market Forces’ Trajectories

March 31, 2013 By 10 Comments

fedSubmitted by Deepcaster:

“The key to control by the “haves” is the production of fiat, unbacked money. Gold is the enemy of money created out of a computer. When gold was removed as a discipline behind money, those who could create “money” out of thin air discovered the path to riches and control.  And they developed a hatred towards gold that was understandable. Gold was the monetary discipline that stood in their way. This set off a long period of Fed-sponsored propaganda against gold. Gradually, through the years, and as generation after generation passed on, even the common man in America began to agree that gold was a worthless relic, a useless ornament to be despised.

“So this is what I believe is the theme of our times. It’s the control of our money by the modern “masters of the earth.” [Read more...]

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Deepcaster: Opportunity and Risk Rockets

March 24, 2013 By 12 Comments

rocketSubmitted by Deepcaster:

A Climacteric began in the International Economy and Markets last week. Its Ramifications have not been widely acknowledged. It provides Great Opportunity and Great Risk. Moreover, this Mega-Development signaled that a Great Opportunity Window is beginning to close. And it signaled loud and clear that The Great Danger of which we have earlier written is approaching ever nearer. [Read more...]

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Deepcaster: Libertarian Economics Profitably (& Properly) Understood

March 18, 2013 By 4 Comments

ron-paul-dont-steal-government-hates-competitionSubmitted by Deepcaster:

Libertarians commendably focus on maximizing Economic Freedom and Individual Liberty. Who, after all, wants not to be economically and politically free?

But there is considerable dispute even among libertarians about what freedom does, or should entail regarding a variety of crucial issues such as “free trade,” immigration, and the proper role of government.  

A profitable (and proper) understanding of Freedom is essential to maximizing Individual and Political Freedom, and to Protecting Economic Freedom and thus enhancing Wealth and Prosperity.  [Read more...]

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Deepcaster: Forecasts Facilitating Gain

March 10, 2013 By 19 Comments

weather girl forecastSubmitted by Deepcaster:

“I don’t know when it’s going to end. But my guess is it’s going to end very badly. And it’s going to end very badly because, again, when you get the biggest price in the world, interest rates being manipulated, you get a mis-allocation of resources and this is going to end in one of two ways: with a mal-investment bust which we got in 07-08 […] Or it could end with just monetizing the debt and ‘off we go’ inflation. So that’s a very binary outcome. They’re both bad.”

The Fed’s and other Central Banks’ Money Printing is surely facilitating Serious Malinvestment, which almost inevitably leads to a Bust i.e., to Economic Stagnation or even Depression.
But that Money Printing is also already leading to Inflation.   Result: Stagflation is impending, or, more likely, Hyperstagflation. [Read more...]

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Deepcaster: Key Market Drivers Going Forward

March 3, 2013 By 10 Comments

danicaSubmitted by Deepcaster:

A Key Market Driver going forward is Increasing Systemic Risk resulting from over-levered Mega-Banks. The arrogant Mega Bank/s receive massive Bailouts via Money Printing and Bond Buying and Super-low Interest Rates for Funding. Yet they complain about over-regulation. And JPMorgan is laying off 19,000 employees to boot and other Banks are implementing layoffs as well.

Yet according to Dimon, they will have too much capital. How so?

U.S. Accounting rules allow them to net off derivatives assets and liabilities and just report a Net figure. [Read more...]

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Deepcaster: Fed Minutes Propaganda Achieve Goal, Drive Gold & Silver Down Through Major Resistance

February 24, 2013 By 23 Comments

gold bear market cnbcSubmitted by Deepcaster:

All Investment Cognoscenti know that The Fed’s “Communication Policy” is aimed at Financial and Market Ends, not at Truth. (Here, should we rely on The Fed’s earlier expressed “Guidance,” or this week’s “Scaling Back” Hint? They can not both be True.)  Indeed that Policy could well be paraphrased “Tell whatever Lie you need to, to achieve your Goals.”

Those recently released Minutes, for example, achieved a Primary Fed Goal of blowing the Gold and Silver Prices down through Major Resistance, and a Secondary one of cooling somewhat inflated Equities and Commodities Prices.   As leader of The Cartel (Note 1) a Cornerstone of The Fed’s Policy is, and has long been, to suppress Gold and Silver Prices, lest they further devalue their Fiat Currencies and Treasury Securities, and so they will not alarm the Hoi Polloi about the intensifying Price Inflation (e.g., 9.24% in the U.S. – Note 2) which their Ongoing Monetary Inflation is increasingly producing. [Read more...]

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Deepcaster: Financial Crisis PHASE 2 MACROEVENTS SIGNAL PHASE 3 IMPENDING

February 16, 2013 By 11 Comments
Image: Jonny O'Callaghan

Image: Jonny O’Callaghan

Submitted by Deepcaster:

Everybody talks about what they are not going to do, which is exactly what they are going to do.  -Jim Oberweis, Oberweis Investment Management, 02/12/13

Yes, indeed, Mr. Oberweis. The Major Powers have begun a Competitive Currency Devaluation “War” = Phase 2 of the Ongoing Financial Crisis. But this War has only just begun. This is why the G-20’s “DRAFT” Pledge, while it may be agreed to, will never be implemented.
When, not if, this War starts to Rage out of control in the next few months, that will mark the beginning of Phase 3, which is inexorably approaching.  Investors and Traders alike must be prepared for Phase III.

And those Investors and Traders who have prepared for Phase 3 can get rich, while those who are unprepared will be devastated.

[Read more...]

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Deepcaster: Bogus Official Statistics Offer Profit Opportunities

February 10, 2013 By 10 Comments

Submitted by Deepcaster:

“There is no paper money in 2014 or 2015 that will be worth much of anything.” – Jim Rogers

Investors are increasingly concerned, understandably, about the Reliability of Official or Quasi-Official (e.g., those emanating from Too-Big-To-Fail Banks and Ratings Agencies) Statistics and other Financial and Economic News.

Understandably so, given that the actions of Participant Mega-Financial Institutions in the LIBOR Scandal cost Borrowers Billions.
Understandably so, if the allegations in the Ratings Agency litigation are proven true, Investors in deceptively “Rated” Mortgage-Backed Securities, and other commercial Paper have taken a Financial Bath there also.
Understandingly so, given the continuing Flood of Bogus Official Economic Statsitics.

But the Mismatch between Bogus “Statistics” and “News” on one hand and the Real Numbers and Real News on the other provides Opportunities to Profit and Protect. This is because Bogus Statistics and Disinformation give rise to inherently Unsustainable Trends and misallocation of Capital.

[Read more...]

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