gold tungstenSubmitted by Deepcaster:

“Knowing Key Truths, especially those hidden by Officialdom for their own Economic or Political Benefit, is a Necessary, but not Sufficient, Condition for Successful Investing. Therefore, Periodic Exposés of Hidden Truths is Essential.”

One Key Truth relating to Gold, and thus to the Soundness or lack thereof of our Fiat Currencies and Financial System, is that there is a Serious Question regarding whether Major Western Banks and Governments actually have all the Gold they say they do. In this regard, Germany has decided to repatriate their 3,400 Tons of Gold allegedly stored at The Fed in New York.   Why?

“I guess it all depends on how you look at it. … Either this is a purely political show or it isn’t. Either the gold is really there to be repatriated or it isn’t. …   “Just three months ago, The Bundesbank labeled as “lunacy” the idea that German gold needed to be brought home. They announce today that they’re doing it anyway, but in sizes nowhere near what had been speculated. Is this just a political trick to mollify the German hoi polloi? Probably. It certainly doesn’t upset the status quo or shake the global banking system in the manner we’d all hoped.

However, you could also choose to look at it this way:

 

 

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Slave Queen 2

 

  • In preparation for The Great Reset, the Germans do desire to repatriate as much gold as possible but they also don’t wish to bring about The Reset any quicker than necessary.
  • So, they bring home “their French gold” but only do so at the rate of 50 tonnes/year. Why? If it’s just sitting in a vault and collecting dust, why not ship it all home over the next few weeks? What’s the big deal?
  • And why leave “their English gold” untouched? Is it because all gold stored at the BoE can be leased, hypothecated and rehypothecated many times over, thereby making reclaiming it impossible?
  • And why bring back just 300 tonnes of “their American gold”, again over the next 8 years? It shouldn’t be that big of a deal to pull up a few pallets of “barbarous relic” from below the streets of lower Manhattan, drive it over to JFK and load it onto an airplane bound for Frankfurt. Should it?

“Hmmmm. Maybe, just maybe, their French gold is long gone and the Frenchy-French need some time to come up with new supply to pay them back? ( http://www.reuters.com/article/2009/12/22/ozabs-mali-gold-idAFJOE5BL01520091222) Maybe the English gold has all been shipped to China and other points East, where it has been resmelted into kilo bars with official Chinese insignia? ( http://www.tfmetalsreport.com/blog/3924/gonefor-good) And maybe, just maybe, the American gold is nothing but paper certificates and IOUs, no more valuable than claims on the GLD?

 

“German Gold Hijinx”, Turd Ferguson

tfmetalsreport.com, 01/16/2013

 

 

 

Ah well, Turd is just speculating, is he not, about …

“their French Gold… is long gone.”

“English Gold has all been shipped to China … “

and

“American gold is nothing but paper certificates and IOUs no more valuable than a claim on GLD…”

 

But then maybe there is more than a grain of Truth in what he says, (Indeed, one of the Free Reports on Deepcaster’s Website provides much Credible Evidence to support many of Ferguson’s Speculations).

 

Because, why else would the Germans have recently backed off on their recent demand that all 3,400 Tons of Gold ostensibly held by The Fed in some Deep Vault in New York be repatriated to Germany and decided instead to settle for repatriation of a mere 300 Tons per year?

 

It’s just sitting in New York, ostensibly. Why not bring it all back to allay the German public’s (very justifiable) Fears?

 

And what does the Germans’ Action say about Central Banks trusting, or not Trusting, each other?

 

And why now?

 

One important partially hidden Fact is that there is greatly Increasing Stress in the Financial Systems of which there is increasing evidence.

 

Remember that the Mega-Banks which were Too Big to Fail before the Financial Crisis are even larger now.

 

What does this reveal about where Profit Potential and Threats to Wealth lie? Reviewing the latest Derivatives Data from the Bank for International Settlements, the Central Bankers’ Bank, gives us Clues.

 

Reviewing the “Amounts Outstanding of Over the Counter (OTC) Derivatives” (www.bis.org) Statistics, Derivatives, Table 19) reveals some shocking Realities.

 

First, the Amount of OTC Derivatives (as of June, 2012, the most recently published figure) outstanding was $638 Trillion, the same order of Magnitude as before the 2008-2009 Financial Crisis.

 

And that represents a $56 Trillion increase over the previous year.

 

Since these OTC Derivatives are highly leveraged instruments, that indicates that Systemic Risk is as high as it was before the Financial Crisis, and is increasing.

 

Inter alia, it means the Fiat Currency based System is under increasing stress.

 

One Symptom, and Cause, of this is the increasing Rush of Major Nations to Devalue their currencies.

 

That is, the Fiat Currency Competitive Devaluation War has shifted into High Gear. It is led by The U.S. Fed and European Central Banks’ QE to Infinity, and now Japan had joined in the Money Printing Race.

 

And the U.K. as well. Retiring Bank of England Governor, Mervyn King, earlier sanctioned the printing of over 325 Billion Pounds ($520 Billion).

 

Nonetheless, now King, somewhat hypocritically, admits that he sees The Writing all over the Currency Wall

 

“I do think 2013 could be a challenging year in which we will, in fact, see a number of countries trying to push down their exchange rates. This does lead to concerns. Will other countries react in kind? What will happen? The policies pursued by countries for domestic purposes are leading to tension collectively.”

 

The effects of Currency Devaluation become clear if one considers the latest Real Numbers from the USA, for example (as opposed to Bogus Official Ones) from shadowstats.com.

 

*Shadowstats.com calculates Key Statistics the way they were calculated in the 1980s and 1990s before Official Data Manipulation began in earnest. Consider

 

Bogus Official Numbers      vs.      Real Numbers (per Shadowstats.com)

Annual U.S. Consumer Price Inflation reported January 16, 2013
1.76%     /     9.36%

U.S. Unemployment reported January 4, 2012
7.8%     /     23.0%

U.S. GDP Annual Growth/Decline reported December 20, 2012
2.6%        /     -2.10% (i.e. a negative 2.10%)

U.S. M3 reported  January 11, 2013 (Month of December, Y.O.Y.)
No Official Report     /    4.57%

 

In sum, we already face increasing Price Inflation and a continued Stagnant Economy.

 

This is why Deepcaster has recommended a variety of Investments to Protect, and Profit from, Inflation (See Notes 1, 2, 3 and 4).

 

And it is not just the foregoing official statistics which are Bogus, but also the U.S. Deficit Figures.

“Based on generally-accepted-accounting principles—or GAAP-based accounting—the 2012 consolidated financial statements of the United States Government showed a $6.9 trillion deficit for fiscal 2012, up from $4.6 trillion in 2011.  The latest detail showed the uncontainable and uncontrollable actual federal budget deficit to be deteriorating rapidly.  The much-delayed GAAP-based statements were published by the U.S. Treasury, today, January 17th.

“Those deficit numbers reflect consistent GAAP accounting on current fiscal operations, plus year-to-year deterioration in the net present value (NPV) of unfunded liabilities for programs such as Social Security and Medicare.  Reflecting the time value of money, the NPV represents the amount of cash in-hand needed to cover future obligations.

“Based on tentative calculations from numbers in the report, total U.S. government obligations—including the NPV of the unfunded-liabilities of social programs—is around $88 trillion, or nearly six-times annual U.S. GDP.”

U.S. Treasury Publishes 2012 Financial Statement of the United States Government”, John Williams, shadowstats.com, 01/17/2013

Indeed, Professor Katlikoff has determined the U.S.A.’s Downstream Unfunded Liabilities are over $220 Trillion.

 

This makes the rush to acquire the Physical Monetary Metals understandable, and wise.

 

“Gene Arensberg at the Got Gold Report –…

– report today on a huge addition of silver holdings claimed by the exchange-traded fund SLV.

 

“What does it mean? Is this real metal or just another paper entry? Maybe it means only what all this stuff means: If you don’t own your metal outside the banking system, you don’t own it at all.

 

“A Zero Hedge poster notes that the medieval French seer Nostradamus seems to have anticipated the great fraud of paper gold and silver:

 

http://www.spiritual-knowledge.net/human/nostradamus-quatrains-8.php

 

Les simulacres d’or & argent enflez,
Qu’apres le rapt au lac furent gettez
Au desouvert estaincts tous & troublez.
Au marbre script prescript intergetez.

 

In English:

The copies of gold and silver inflated,
Which after the theft were thrown into the lake,
At the discovery that all is exhausted and dissipated by the debt.
All scrips and bonds will be wiped out.

 

“If you study the French text closely enough maybe you can find a coded acronym for JPMorganChase.”

 

“Nostradamus wouldn’t believe SLV’s claim of huge increase in metal holdings”,

Chris Powell, gata.org, 01/17/2013

 

That all the foregoing is not a pretty prospect, should be irrelevant, from an Investment Perspective. Indeed, one should just have the Courage to acknowledge and act on, The Truth which incidentally is also the Main Road to Profit and Protection.

 

Perhaps Ayn Rand best summed it up.

 

“One can avoid Reality, but one cannot avoid the Consequences of avoiding Reality.”

 

Indeed, an increasingly less hidden Reality which none of us should ignore, and from which all of us can profit is that a New Gold Standard is being born.

 

“The world is moving step by step towards a de facto Gold Standard, without any meetings of G20 leaders to announce the idea or bless the project.

“Some readers will already have seen the GFMS Gold Survey for 2012 which reported that central banks around the world bought more bullion last year in terms of tonnage than at any time in almost half a century.

“They added a net 536 tonnes in 2012 as they diversified fresh reserves away from the four fiat suspects: dollar, euro, sterling, and yen.

“The Washington Accord, where Britain, Spain, Holland, Switzerland, and others sold a chunk of their gold each year, already seems another era – the Gordon Brown era, you might call it….

“Neither the euro nor the dollar can inspire full confidence, although for different reasons. EMU is a dysfunctional construct, covering two incompatible economies, prone to lurching from crisis to crisis, without a unified treasury to back it up. The dollar stands on a pyramid of debt. We all know that this debt will be inflated away over time – for better or worse. The only real disagreement is over the speed.

“The central bank buyers are of course the rising powers of Asia and the commodity bloc, now holders of two thirds of the world’s $11 trillion foreign reserves, and all its incremental reserves.

“It is no secret that China is buying the dips, seeking to raise the gold share of its reserves well above 2pc. Russia has openly targeted a 10pc share. Variants of this are occurring from the Pacific region to the Gulf and Latin America. And now the Bundesbank has chosen to pull part of its gold from New York and Paris.

“Personally, I doubt that Buba had any secret agenda, or knows something hidden from the rest of us. It responded to massive popular pressure and prodding from lawmakers in the Bundestag to bring home Germany’s gold. Yet that is not the end of the story. The fact that this popular pressure exists – and is well-organised – reflects a breakdown in trust between the major democracies and economic powers. It is a new political fact in the global system.”

“A new Gold Standard is being born “, Ambrose Evans-Pritchard
Financial Times, Last updated: January 17th, 2013

 

Get Gold.

 

Best regards,

 

Deepcaster

January 18, 2013

 

Note 1: Just four days ago we issued a “Take 83% Profit” Notice on a stock we recommended just 111 days before in a “Fortress” Asset Sector.

 

Just two days ago, we made another Buy Recommendation in that same Sector – a Sector that’s Superb Profit Potential will remain Relatively Undiminished by Economic Conditions, whatever they may be.

 

And we expect to make several more Recommendations in that Fortress Asset Sector in the Next Few Months.

 

The Economic Forces which were temporarily displaced by the Fiscal Cliff Fight are coming to the Fore again. And those Forces telegraph the next likely Market Moves, which we Forecast in this week’s Alert, just posted.

 

To see our Fortress Asset Sector Buy Recommendation and our Forecasts for U.S. Dollar/Euro, & U.S. T-Notes, T- Bonds, & Interest Rates, Gold, Silver, Equities, & Crude Oil, go to deepcaster.com and click on ‘Alerts Cache.’

 

Note 2: 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 recent Forecasts for Gold, Silver, Equities, U.S. Dollar/Euro, & U.S. T-Notes, T- Bonds, & Interest Rates, & Crude Oil, read our 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 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 High Yield “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 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.’

SD Bullion

    • Agreed, AG.  Of course, they have known all about this for many years in Tibet.  This is a sovereign nation that is rich in minerals, including the “rare earth” elements upon which much critical and advanced electronics and military hardware depends.  Because plundering this small Asian country is simpler for those in Beijing to understand, they continue to hold it in thrall so that the plundering may continue unabated… and the world does virtually nothing!  China should be branded as a rogue state and pariah over this issue, yet they are not because others are also profiting from the rape of this defenseless country.  Of course, they are quite civilized in Tibet, having a Chinese governor who insists on liberal-approved gun control as a public safety issue.
       

  1. @ Ed_B
    What about the indigenous population of the U.S. – the Indians? U.S. should be branded as a rogue state and pariah over this issue? Yes or no?

    Or do you see any difference between the attitude of the China government to the indigenous inhabitants of Tibet and the attitude of the U.S. government to the indigenous people of the United States? Yes or no?

     

    • No, I do not see a lot of difference in either situation.  Both involve conquest and the taking of that which is not theirs.  Unless, of course, that one believes that might makes right… which I do not.  Might is sometimes necessary to defend one’s self but seems vastly over-used as a method of solving problems.  Should humanity live long enough without killing ourselves off, perhaps we will outgrow the need to hit each other over the head and steal each other’s stuff at every opportunity.  For now, unfortunately, that seems de rigueur.
       

  2. @Silvermail: If you know a little about history you know the Europeans were having an age of conquest. Spain and France, Portugal, Britton and others were claiming all that Indian land. Their claims had to be removed. Of course you could go and ask indians in the U.S. if they would prefer European masters and live as indians have in south and central America. I also notice you don’t mention the indians of Canada and their condition. What of the Australian aborigines? The Polynesians? You’re very selective in your history and who should be condemned, aren’t you? Yes or No? Maybe it’s just Hollywood history.

  3. @ RocketsRedGlare 
    You are wrong in two things:
    1. This is not my “selectivity in history”, this is just exact copy “selectivity in history” from the message above.
    2. If we will be talk in the light of this “selectivity in history”, then U.S., Canada, Britain, Spain, India, Russia and many other countries are no different from China. In almost every country there is the problem of separatism in some degree of a certain part of the population.

    You want to be “very selective” in this complex issue, not to see these issues in other countries and see them only in China?
    Or You want the U.S. government to declare and branded all of this country’s as a rogue states and pariah marginalized only for this reason?

    In this case, it would be more easier to declare about the U.S. political isolation from all the rest of the world.
    This is a mistaken policy and such policy will lead U.S. to the economic abyss.

    You would think that the U.S. has no other problems to begin right now a full-scale trade war with China.
    A good time for the U.S. right now to receive as answer tsunami of dollars, which China will throw on the market as paper waste, is not it?
     

    • “You would think that the U.S. has no other problems to begin right now a full-scale trade war with China.”
       
      There are those who would say that China has already declared a trade war against the US and we are the only ones who seem not to know it.  As in just about everything, much is in the eyes of the beholder.

    • Tibet was and still is an internationally recongnized nation with internationally recognized borders in the modern era. Stone age indian tribes were not. China has no business in Tibet. there should be international sanctions on them untill they leave. They stole the country by force. Screw China and and the “JUNK” it produces. We would be just fine without them sending more.

  4. Policy – is a servant of the economy. In politics, there is no room for emotions.
    We can criticize China for Tibet, Taiwan and so on. But we can not declare isolation of China from the United States. For the U.S., it would be as a shot myself in the foot.

    If you take away from the U.S. market, all Chinese goods, the prices of all goods in the U.S. will take off twice. This is at a minimum. These price increases will lead to a social explosion in the poorest segments of U.S. civil society.
    I do not think, that you want to see it.

    • And yet, we lived rather successfully for a couple of centuries with no discernible goods from China.  Now, for some inexplicable reason, we cannot survive without them?  Hmmm…  perhaps we are stuck on the idea that only the cheapest goods will do.  There is a substantial market out there for goods of higher quality than generally comes from China or India.
       

  5. The note about China and the cost of goods in this country has a countervailing argument.  40 years ago, before we started the export of 40-50 millin good paying American jobs to the east in  quest for cheap products, a family could support itself on one breadwinner working a manufacturing job. We still ship over 1 million good paying jobs each to China etc.  This last 40 years has gutted the American family, middle class and turned formerly productive wealthy cities into ghettos.  Today there is talk of bringing jobs back too——Mexico. China’s wage levels have risen nearly 15% each of the last two years.  Mexican wages are now competitive with China given shipping and tariffs.  The thing that struck me is that America was not mentioned in that statement.  If we built products here it’s  pretty good chance those poorest segments of the US society would be able to get good paying jobs, lifting the income levels so that we could get back to a level where we could afford American products even if they cost more than CHinese. 
    There is still the problem of the Fed and State regulations and taxes that impose nearly insurmountable barriers to starting a manufacturing plant. No to be argumentative but the US Government makes it very difficult to built stuff onshore. While global commerce has lifted billions out of terrible poverty, it has send tens of millions of workers in this country into the ranks of the working poor.

  6. @ AGXIIK
    I totally agree with your conclusions. Import of goods – is the export of jobs. Exoprt jobs – is export money from the state budget.
    But we can not solve this problem by full isolating China from tomorrow morning.
    The return process jobs in the U.S. will take time, patience, and political wisdom. We do not have the magic switch with two positions “on” and “off”, to instantly bring back what we gave to China for forty years.

  7. @AGXIIK, & @Silvermail, Thanks for the comments about Manufacturing.  The export of US jobs and subsequent gutting of the middle class is a complex issue which is often simplified by the assumption that cheap labor is the culprit.  As a Manufacturing Engineer I can attest there is much more to it than that.
     
    Obstacles to manufacturing returning to the US in any meaningful scale include the overywhelmingly confusing array of environmental & safety regulations which American manufacturers myst comply with  (while their Asian competition does not), as wall as costly, ‘cover-your-ass’ procedures to ensure the firm is not left open to a lawsuit.  These add tremendous cost to making a product here in the US – which, again, firms in other countries do not have this expense.

  8. Mammoth those are other excellent points. I like to buy on  line as well at retail stores.   It is quite difficult to find anything made in the US.I’d pay more for American quality if I knew where those products are.  I did find some good trailer locks that had the USA label and bought three. 
    It’s distressing to find few USA made products because every time I buy something on line, without knowing its national origin, and find it’s made in China, Taiwan, Indonesia or India, I feel like I’m taking an American job. Sometimes I got without a product if there is no American made goods that are similar to the overseas stuff.
    I have nothing against these other countries because I appreciate greatly the increased wellbeing of citizens in other countries as they get a chance to grab the brass ring. The saurely pathout of poverty is a good job. If anything, our best job has been exporting the economic wellbeing and financial/material benefits of our productive country to others, starting with Mexico and Central America.  Prior to the last 3 decades, we were the beacon of the world. People worked and strived to extract themselves from 5,000 years of poverty and early deaths from disease, war, tyranny and the debilities of the dark ages.  We were the light at the end of that tunnel. It appears that as our beacon fades, other countries are taking the torch.  We need to do some serious thinking and soul searching if we are to bootstrap ourselves back to some semblance of a robust business enviroment, hard work and economic stability. We are still going the wrong way. 
    Silver seekers are emblematic of these problems as we try to tread water and seek some safe haven solutions from the overarching problems that plague this country. I pray that we will come to our senses before we go past some tipping point.  The people on this post are some of the best to provide the underpinings of the efforts to the end that helps this country get back on its feet.
    Too many bankers, lawyers and slackers may be the problem but that’s just opinion.
    Soap box is now put away

    • Agreed, AG.  I was at Lowes the other day.  I needed some storage racks for our food larder.  They had some that were on sale that looked good to me.  The deal was sealed when I saw the Made in USA” label on the corner of the box.  It was a pleasant surprise to see this.
       

  9. @ Mammoth 
     
    Thanks for the clarification. Previously, I had never thought about this issue in terms of ecology and legislation. Now I do not see any solution to this problem. In such circumstances, we can not produce goods cheaper than in China.

    AGXIIK right: If we can not solve this problem on a national scale, we need to solve this problem on the scale of his family via gold and silver.
     

  10. A bit of good news. Buying some 40 watt incandescent light bulbs at ACE Hardware,  nice in that they are not those flourescent ones, these bulbs are made in the USA.  GE, not so much. Made in Mexico.  Aside the fact that Jeff I-melt for Barack(brown noser in chief),  head shed of GE, member of BHO’s jobs panel that has not met in a year, offshored 40,000 jobs in the last 2 years and offshores billions in taxes on which GE pays poquito, GE is permanently off my list of manufacturers.

    • Yes, same here.  I haven’t been a GE fan in some time.  Their recent antics have really turned my stomach regarding shipping out jobs and capital and then paying virtually no tax on billions in earnings.  This is precisely what is wrong with the US economy these days, in addition to your comments on licensing, regulating, and taxing businesses to death.  The Gov is standing on the patient’s air hose and cannot imagine why he continues to get weaker.

      We desperately need a 2-tiered tax system that strongly favors domestic production as opposed to off-shore production. US manufacturers can do some pretty amazing things but not while the Gov is making life so difficult for them that they can barely function.

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