Banking Elite Continuing Policies Ensuring Devaluation of Fiat Currencies & Price Inflation in Commodities Such as Gold, Silver, Food, & Oil

dollar hyperinflationSubmitted by Deepcaster:

For several years, Notable Independent Commentators, including Deepcaster, have warned that the Elite Central Banks’ Orgy of Fiat Currency Printing, a la QE etc, would result in Price Inflation, so it is no surprise to us that The Bond King, Bill Gross of PIMCO, with about $2 Trillion under Management, would finally warn in his January 2013 letter to Investors of Impending Price Inflation in Key CommoditiesOf course, General Price Inflation is already here, if one looks at the Real Numbers (e.g., U.S. CPI at 9.8% per shadowstats.com) as opposed to the Bogus Official Ones.

Going forward, this Mega Bank-generated Price Inflation provides considerable Profit Opportunities, but only in certain kinds of Commodities, and especially in one Sector Bill Gross does not specifically mention.  In sum, Policies actually being Implemented by the Power-Banker Elite virtually ensure a continuation of Fiat-Currency Depreciating Policies, and thus Price Inflation in Certain Commodities Sectors, as well as Increasing Risk of Systemic Destabilizing à la 2008-2009.


Silver Bullet Silver Shield Slave Queen Collection  at SDBullion.com!!

Slave Queen 2

 

Gain from Power Elite’s Key Sector Price Inflation

“The future price tag of printing six trillion dollars’ worth of checks comes in the form of inflation and devaluation of currencies either relative to each other, or to commodities in less limitless supply such as oil or gold.

 

Zero-bound interest rates, QE maneuvering, and ‘essentially costless’ check writing destroy business models and stunt investment decisions which offer increasingly lower ROIs and ROEs.”

 

Bill Gross, Founder & Co-CIO, PIMCO, 1/3/2013

 

 

For several years, Notable Independent Commentators, including Deepcaster, have warned that the Elite Central Banks’ Orgy of Fiat Currency Printing, a la QE etc, would result in Price Inflation.

 

So it is no surprise to us that The Bond King, Bill Gross of PIMCO, with about $2 Trillion under Management, would finally warn, in his January, 2013 letter to Investors, of Impending Price Inflation in Key Commodities.

 

Of course, General Price Inflation is already here, if one looks at the Real Numbers (e.g., U.S. CPI at 9.8% per shadowstats.com) as opposed to the Bogus Official Ones.

 

Going forward, this Mega Bank-generated Price Inflation provides considerable Profit Opportunities, but only in certain kinds of Commodities, and especially in one Sector Bill Gross does not specifically mention. (See Notes 1, 2, 3 and 4)

 

In sum, Policies actually being Implemented by the Power-Banker Elite virtually ensure a continuation of Fiat-Currency Depreciating Policies, and thus Price Inflation in Certain Commodities Sectors, as well as Increasing Risk of Systemic Destabilizing à la 2008-2009.

 

Yet consider also that the “Regulators” continue to accede to the Mega Banks wishes.

 

Basel Committee’s revised LCR prompts relief and concerns

The Basel Committee on Banking Supervision’s decision to give global banks an additional four years to meet liquidity requirements was aimed at ensuring that the change wouldn’t discourage lending to the real economy. Some banks have already benefited from the revised liquidity coverage ratio, with their share prices increasing. GFMA welcomed the Basel panel’s decision to allow mortgage-backed securities and equities to be included in banks’ liquidity buffers.

 

Basel panel’s allowance of MBS in buffers faces scrutiny

The Basel Committee on Banking Supervision’s decision to let banks include equities and residential mortgage-backed securities in Basel III liquidity buffers is gaining plaudits and criticism. Bankers welcome the revision, but experts say it is unlikely to significantly lift a slack securitization market. The change also presents challenges for regulators

 

Significantly, Many Mortgage Backed Securities are still Toxic if Mark-to-Market Standards are applied, which they are no longer required to be.

 

So, de facto, the Banks may “count” Toxic Securities as part of their Liquidating Buffer.

 

Worse yet, the Regulators have, once again, administered a mere slap on the wrist to Major Banks which engaged in unacceptable practices. For example

 

Banks settle mortgage-related legal disputes

Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and other major banks agreed to pay a total of $20 billion to settle two legal disputes related to the mortgage crisis. BofA agreed to pay Fannie Mae $11.6 billion. In a separate dispute, 10 lenders agreed to pay more than $8.5 billion over foreclosure practices.”

 

sifma SmartBrief, 1/8/2013

 

 

Hardly a deterrent going forward.

 

In effect, this policy allows Risk to continue to Threaten Systemic Stability and its wealth of Individual Investors.

 

Making matters worse for Systemic Stability and Investors alike, is the Mega-Bankers’ Cartel (see Note 5) ongoing Manipulation, not just of Precious Metals but of a Wide Variety of Markets.

 

While Deepcaster, GATA and others have been complaining about such Manipulation for years, the Situation has become so threatening to Systemic Stability that even the Most Reputable and successful Investment Managers such as PIMCO’s CEO, Mohammed El-Erian, are complaining about the Risks inherent in such intervention as well.

 

 

“The investment recommendations made by many financial commentators are now dominated by cross-asset class relative valuation rather than the fundamentals of the investment itself….

 

“This is an understandable approach as unusual central bank activism has artificially elevated certain asset prices. Yet the dominance of this increasingly popular advice comes with potential risks that need to be well understood and well managed.

 

Several asset classes now have highly manipulated prices due to experimental central bank activities, both actual and signalled. The more this happens, the more investors come under pressure to migrate to higher risk investments in search of returns….

 

“Just a few weeks ago the Federal Reserve announced it is targeting a further $1 trillion in asset purchases in 2013, representing a third of its existing balance sheet. Other central banks — particularly the Bank of England, the Bank of Japan, and the European Central Bank — are also expected to expand their balance sheets again in the months ahead….

 

“There is a limit to how far central banks can divorce prices from fundamentals….at some point, and it is hard to tell when exactly, the private sector will increasingly refuse to engage in situations deemed excessively artificial and overly rigged….

 

“Have no doubt: Central banks are both referees and players in today’s markets. With 2013 starting with so many liquidity-induced deviations, investors would be well advised to take greater care when pursuing opportunities that rely mainly on the ‘central bank put.’” (emphasis added)

 

          “Beware the ‘Central Bank Put’”, Mohamed El-Erian, ft.com, 01/07/13

          Chief Executive and co-Chief Investment Officer of PIMCO

 

 

El-Erian is Spot-On correct about the Risks Associated with Investment in “Highly Manipulated Asset Classes, which is why Deepcaster’s portfolio Recommendations aim both to Minimize Risk from and to Profit from, these and others.

 

But it also makes certain Real Assets even more attractive going forward.

 

Thus the Big Smart Money is responding accordingly, moving Money into Gold and certain other commodities (See Notes 1, 2, 3 and 4).

 

For example, notwithstanding ongoing Cartel (Note 5) Precious Metals Price Suppression and in response to Japanese Prime Minister Abe’s pledge to spur Inflation, Japanese Pension Funds ($3.36 Trillion in Assets!) plan to double their Gold Holdings in the next two years according to Bloomberg Business Week.

 

A word to the wise: Go for the Gold.

 

Best regards,

Deepcaster

January 11, 2013

 

Note 1: All savvy Investors know that Debt Ceiling, Spending Cuts, Sovereign Indebtedness, Unemployment, and Consequent Central Bank Fiat Currency Printing Issues will likely be quite Contentious for many months to come.

 

And this Ongoing Contentiousness will likely not be Positive for most Markets.

 

Indeed, it is likely that the current Price levels of many Financial and Economic Assets will be greatly pressured over many months. But there is one “Fortress” Asset that is likely to appreciate at least 200% and perhaps as much as 1000% by 2015 regardless of the battles over the foregoing issues.

 

To consider this “Fortress” Asset Profit Opportunity and our latest Forecasts for Gold, Silver, Equities, U.S. Dollar/Euro, & U.S. T-Notes, T- Bonds, & Interest Rates, & Crude Oil, read our latest Alert, “200% to 1000% ‘Fortress’ Asset Profit Opportunity; Forecasts: Gold, Silver, Equities, U.S. Dollar/Euro, & U.S. T-Notes, T- Bonds, & Interest Rates, & Crude Oil” posted in ‘Alerts Cache’ at deepcaster.com.

 

Note 2:

 

“There is no practical way that QE can cease here or in Euroland without a total and final collapse of the financial system.”

 

“The Federal Reserve Really Has No Practical Option To End QE”

Jim Sinclair, jsmineset.com, 1/3/2013

 

The five year chart of the CRB Index (a Broad Measure of Commodities Prices) shows three descending tops, which is suggestive of Deflation. But to conclude that Deflation is likely to be The Ruling Force in the Economy in 2013 would be a Dangerous Error.

 

Indeed, it is critically important for Investors to understand whether or not we are in an Inflation or Deflation, or both (we explain how this is possible in this week’s article). Failure to understand The Reality about Deflation and Inflation is likely lead to poor or even lethal Investment decisions.

 

Indeed, Contrary Anecdotal Evidence which many of us have encountered in recent years from Increasing food and energy prices suggests we are in a serious Inflation. But how do we reconcile that fact with the CRB chart referred to above which shows a series of lower lows in recent months and the 5-year Chart of Dr. Copper, the Premier Indicator of Economic activity, which also appears to be Topping and apparently ready to “Deflate.”

 

But if one takes a look at the very recent CCI numbers or at Inflation since, say, 1930 (immediately pre-Depression) one gets a very Different view. They indicate Inflation.

 

In our article “Profit from the Inflation/Deflation Reality in 2013” posted recently in ‘Articles by Deepcaster’ at www.deepcaster.com we explain The Inflation/Deflation Reality and indicate how to Profit from it.

 

Note 3: The Various Challenging Fundamental Economic, Financial and Political Forces operating on Key Markets lately have coalesced in a way to enable our High Probability Forecasts going into 2013.

 

But these Challenges have provided a Superb Opportunity to invest in one “Fortress Asset” International company (one likely to profit regardless of the economic environment) on the cheap. And its Recent Yield is over 8% to boot.

 

For these Forecasts for Key Markets for December 2012 through to the Spring 2013 and our High Yield Fortress Asset Buy Recommendation see our recent Alert, “8% Yield Fortress Asset Buy Reco; Forecasts into 2013: Equities, Gold, Silver, Crude Oil, & U.S. Dollar/Euro, U.S. T-Notes, T- Bonds, & Interest Rates,” recently posted in ‘Alerts Cache’ at www.deepcaster.com.

 

Note 4: There are Magnificent Opportunities in the Ongoing Crises of Debt Saturation, Rising Unemployment, Negative Real GDP growth, over 9.0% Real U.S. Inflation (per Shadowstats.com) and prospective Sovereign and other Defaults.

 

One Sector full of Opportunities is the High-Yield Sector. Deepcaster’s High Yield Portfolio is aimed at generating Total Return (Gain + Yield) well in excess of Real Consumer Price Inflation (9.41% per year in the U.S. per Shadowstats.com).

 

To consider our High-Yield Stocks Portfolio recommendations with Recent Yields of 10.6%, 18.5%, 26%, 15.6%, 8%, 6.7%, 8.6%, 10%, 14.9%, 8.8%, 10.4%, 15.4%, and 10.7% when added to the portfolio; go to www.deepcaster.com and click on ‘High Yield Portfolio’.

 

Note 5: 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.

SD Bullion

Comments

  1. Long as I can figure out a way to make the fraud work for me , why is it a problem ?  Because it is not fair too the double digit IQ matrix monkeys ?  Hint we are all created equal , we are not all created identical. Complain about factory defects to the manufacturer ).

  2. Leaving aside the investment opportunities available by betting into upcoming disasters, the story of inflation is becoming more and more evident in its scary inevitability and damage that will occur. Most people sense inflation in their wallets even though it’s slow and incremental erosion of buying power is being poohpoohed by the BLSBS. Incomes are dropping in face of price increases. Rents, food, energy, medical care and insurance are up high single and low double digits. One case in point that is seldom talked of is China. Recent articles show this country as the biggest prepper nation in the world. We’ve read the stories of China buying every available ton of silver and gold. They are also buying millions of tons of food at relatively low prices; purchases well in excess of the people’s needs. China is consuming millions of tons of base metals, copper, coal and other commodities that will either go up substantially in price or be unavailable. In the world of ZIRP China is acutely aware that their dollar reserves are neither earning any returns to speak of but are becoming worth less and less as the months go by. It is quite possible that China (and Japan) see 1% devaluation in currency reserves a month. They are buying such huge quantities of baby formula from Australia that acute shortages are showing up in Aussie grocery stores. Talk about stealing food from the mouths of babes. Tears of the Moon has talked about Chinese buying in recent articles.
    China is verging on a hot war with Japan over the Sendaku islands. Japan wants those islands for both the nationalist fervor of their possession along with a bolt hole should Fukushima become even more perilous. Abe is on thwe war path over this. Taiwan does not really have a dog in this fight but they will have to choose sides. The biggest issue is our defense treaties with Japan that assures Japan that we will come to their defense. Given the nature of our present administration, this is going to test loyalties that are not subject to testing the political winds with a wet finger. The Chinese understand and rightfully fear wars, small or large, and stock appropriately
    Like us on Silver Doctors, China sees a coming storm. It’s in the nature of humans to stock up stores for the coming winter. It may not be evident today how that storm will form, what will spark the flames, or what its final fury will look like but it is clear that it’s forming. Anyone who has been through what China experienced in the last 200 years, culminating in the Rape of Nanking and the US colonial currency hegemony that’s worked to China’s benefit and detriment, China sees that it will be on its own when the storm hits. It will not allow itself to be taken to the ‘cleaners’ like it’s been in the prior centuries. This time they will be prepared, and given the billions of assets bought and stored on the land or commodity assets bought in other countries, they won’t be caught flatfooted. They know what we are doing to our currency and how it affects food inflation. If the present drought continues and we must slow our exports of food stocks, hundreds of millions will go hungry due to high prices and low food availability. These are the seeds of conflict and political instability. The Arab Spring was not about freedom; it was about food.
    Unfortunately, in our country it seems that the only people stocking and prepping to any great degree are the Federal and State Governments. With billions of bullets and hundreds of millions of MREs etc, our government is stocking up. The few million people who are preppers, buying in order to avoid going without and hedge for the simple reason that food and stocks bought today will cost 10-20% more tomorrow, this number is less than 1% of the US population. To say that’s inadequate is the understatement of the decade.
    The Chinese president Jinping has some real problems on his hands. He can’t print like our QE since that will produce massive food inflation which would end up in starvation for tens of millions of Chinese, many of whom live on $2 a day. He knows the power of the rural peasant can’t be contained with guns and armies any more. Food and work riots have exploded in the provinces, events that you won’t see in the MSM. This bit of monetary wisdom is not shared by our leaders, cluelessly trying to spend us into prosperity by running the printing presses full time. China has its problems, not least of which is that its economy may only grow by 6-7% this year. But they will survive by both self preparing and making sure their currency is backed in part by precious metals consisting of 7,000 to 10,000 tons of gold with maybe 500 MOZ of silver.
    I see China as the bellwether, sensing the coming storm as well as future resolutions to economic decline and economic prosperity.
    Audit the Fed. Audit Fort Knox.

    • More are preppers than you think, rural life is living a prepper lifestyle mostly. Food growing and preservation aren’t dead in the small communities. Buying local often via barter is very common, sometimes an agreement for future barter. I got 8 chickens in exchange for future computer work for someone. Chickens I promptly canned for future use because my freezer is full.

    • I agree with Mary on this.  Those who live in rural areas rarely ever think of themselves as “preppers”.  For them, it is simply the way life is.  You stock up on food in the summer and fall when it is available or you go hungry in the winter and spring.  While I do not live in a rural area yet (!), I have before and come from a long line of farmers and gardeners who have home canned, pickled, salted, dried, and smoked food for the winter for several decades.  By now, it is in the blood and comes to the surface quite easily.  
      :-)
       
      Excellent comments in China, AG… very illuminating stuff for sure.  I have also read that the Chinese are buying real assets all over the globe and are using US dollars to do it.  Mines, oil fields, timber companies / land, fishing fleets, farms, ranches, and other food production, storage, and distribution businesses.  They are very active in parts of Africa, an entire continent that has been pretty much ignored by the US and badly treated by Europe.  China can easily relate to that as their recent history is similar.
       
      On another note, imperialism is not dead.  The French are proving that via their continued military presence in Mali.  There seems to be a civil war (a fine example of what the word oxymoron means) brewing in the northern 1/3 of this west African country and the French are there to “help”.
       

  3. So, why is it none of these scum bankers are eating prison food? I know, silly question.

    • Those scum bankers will be number one on the most wanted list by the people after a collapse and I don’t think they can go far enough to hide. Maybe down a bunker somewhere but even that won’t guarantee they live.

    • They’ll come out of those rat-holes when gasoline is poured down the ventilation shafts.
       
       

  4. when everything collapses and fiat implodes … a new world will emerge a new system will be developed and those running it would be those same scum bankers
     

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