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

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.

 

2013 Silver Eagles IN STOCK As Low As $2.69 Over Spot at SDBullion!


“Plus ça change, plus c’est la même chose.”

          French Wisdom Nugget

 

“Federal Reserve Policymaker’s late last month expressed explicit and detailed squeamishness over their monetary stimulus, which might be scaled back sooner than the Fed’s own guidance suggests, according to Minutes released Wednesday.” (emphasis added)

 

IBD, 02/21/13

 

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.

 

But The Fed’s (and other Central Banks’) ongoing Monetizing and Dissembling creates Enhanced Investment and Trading Opportunities in Several Sectors.

 

Consider Gold and Silver

 

Extraordinarily low levels of Fear (reflected in an ultra low VIX), plus increasing (but unjustified) Bullish sentiment for Economic strength reflected by MSM Talking Heads, is facilitating Cartel success, for many weeks now, in keeping the P.M. prices (save Platinum) trending down to the bottom of trading ranges, and, now, below.

 

Just as we earlier Forecast The Cartel took advantage of the Lunar New Year to drive down P.M. prices. Thus Gold and Silver have traded down to and through Major resistance.

 

Unfortunately for us Precious Metals Partisans already holding positions, The Cartel has succeeded in breaking Gold down below its 50 and 200 Day Moving Averages – very Bearish short-term.

 

JBGJ confirms The Cartel’s recent successful Bear Raid:

 

“The CME Final for Friday confirms that volume was 283,225 lots. 4.7% above estimated. This means half the day’s volume was done in the 8am-9am period.

 

Open interest only rose 854 lots, 2.66 tonnes or 0.19%, to 445,413 lots. (The Preliminary had indicated 1.04%.) Nevertheless, any increase on a day in which gold was down 1.71% at the floor close, 1.63% at the stock market close and sustained so much technical damage is remarkable. Friday was a monster Bear raid.”

 

“Friday O.I. Increase Confirms Friday Major Bear Raid,”

John Brimelow, JBGJ, 2/19/2013

 

 

And The Fed’s Minutes (hinting at possible “Tapering” off of QE) released this week administered the Coup de Gras with the result that Gold and Silver have broken down through Major Resistance at $1600 and $30 respectively, The next Major Resistance is $1535ish for Gold and $26 to $27 for Silver. Given the breakdown we would not be surprised to see these P.M.’s taken down to these levels, short-term.

 

We reiterate however that, we expect these levels to be temporary because The Cartel is having increasing difficulty holding three P.M.’s down, given the unrelenting demand for Physical, especially Physical Silver.

 

In other words, Gold and Silver are likely still participating in the completion of their bottoming process and The Fed’s Action has created an Enhanced Buy Opportunity.

 

Thus, there continue to be increasingly Excellent Buying Opportunities at these levels in both the Bullion and the Shares and especially in Silver.

 

A similar Opportunity, but in Reverse as it were, exists in Equities.

 

Fed (and other Central Bank) Money Printing has kept Equities afloat on a Sea of Liquidity, resulting in an Artificial Rally, i.e., one not founded on Fundamentals.

 

But the slightest Hint of decreasing Fed support, such as in The Fed Minutes, gives the Equities Markets Serious Trouble, Trouble which Establishment Newsletter Writer, Dennis Gartman, has recently labeled a “Tectonic Shift”.

 

The Stock Rally which began last November reminds us that Stock Prices can stay divorced from Fundamentals for a long time. And, fundamentally, the OECD (Developed) Nations’ Economies are still Shrinking. The USA’s Real GDP is already a Negative -2.20% per shadowstats.com.

 

So it is no surprise that the Top of this Artificial Rally (yet to arrive) would complete the Ominous Hindenberg Omen Pattern, and that that top will likely be followed by a cataclysmic multi-leg, multi-year crash—the impending Mega-Move of which we have spoken, and which we think is highly probable.

 

We emphasize this scenario is consistent with the Real Numbers. For example, just 4.9% of the companies which have reported have raised guidance. This is the sixth quarter in a row in which more companies have lowered guidance than raised it and that is the Trend – ever lower earnings guidance, which signals lower Equities Prices dead ahead.

 

Moreover, the Economic Fundamentals including Debt Saturation, Ever Higher Unemployment, and Economic Stagnation, including the OECD’s outright contraction referenced above, have not disappeared, but have, overall, worsened.

 

Thus, we reiterate: it is  very important to bear in mind that the Equities Markets are not being impelled upward on Fundamental Strength but rather on The Fed-provided (along with other Central Banks) Tide of Liquidity… and that is a Dangerous Situation which will likely lead to a Crash.

 

This is what the multi-year Hindenberg Omen Chart Pattern is telling us.

 

But this eventually will provide us with Great Opportunities to Profit on the Short Side, when the time is Right, a Time which we forecast in our latest Alert, “17.97% Yield Buy Reco & Remarkable Forecasts: Equities, Gold, Silver, U.S. Dollar/Euro, U.S. T-Notes, T- Bonds, & Interest Rates, & Crude Oil” post in ‘Alerts Cache’ at deepcaster.com.

 

Similar Short side Opportunities exist in the $US and U.S. Treasury Securities over the long term, where The Fed is creating The Mother of All Asset Bubbles.

 

The $US Moving Averages Chart has recently generated a “Death Cross – the 50 Day Moving Average has crossed below the 200 Day Moving Average. Not good, but not surprising, given The Fed’s ongoing $US Destruction Derby.

 

The $US Action since mid-November (and notwithstanding the recent pop up) appears to be the first leg down of what will become the long-term trend we have earlier forecast – the Destruction of the $US as the World Reserve Currency, and its replacement by a Gold-backed Yuan.

 

In sum, the $US Action since November is the beginning of a chopping long term down trend for the $US, interrupted by spikes up (as we are seeing this week) on Eurozone weakness and/or an Equities Crash, and/or Risk-off Moves.

 

Indeed, there is an increasing Threat of that Massive Sell-off in the U.S. Dollar, especially vis-à-vis Real Physical Assets, beginning any time in the next very few months notwithstanding what the Central Banks do; that is because of The Orgy of Fiat Currency Printing The Fed (and other Central Banks) is unleashing, coupled with increasing and unpayable U.S. Debt.

 

That is, The Biggest One, Rising Interest Rates aka The Bursting Treasury (and other) Bond/s Bubble, has just begun, as we earlier Forecast. It is no secret that yield on the U.S. 10-year has shot up over the past few days and is now bouncing around 2%.

 

Thus $US Treasuries will offer an excellent short play as well provided the timing is right.

 

In sum, even though Fed (and other Central Banks) Policies are quite destructive to U.S. National Economic health (as well as to the health of other Nations, and to Individuals, such as Savers and Retirees) via Inflation, The Fed’s Money Printing does offer Opportunities for The Prepared.

 

Best regards,

 

Deepcaster

February 22, 2013

 

Note 1: 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.

 

Note 2: 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 February 21, 2013
1.59%     /     9.24%

U.S. Unemployment reported February 1, 2012
7.9%     /     23.0%

U.S. GDP Annual Growth/Decline reported January 30, 2013
1.54%        /     -2.20% (i.e., a Negative 2.2%)

U.S. M3 reported  February 17, 2013 (Month of December, Y.O.Y.)
No Official Report     /    4.59%

 

 

SD Bullion

Comments

  1. Hell you don’t have to prove it to me that the Fed are lying through their teeth and they are printing Fiat to control the PM’s their taking there orders from the Treasury which is controlled by the Cartel.
    Just Keep Stacking even if it goes to $5 because we’re going to need it when TSHTF.

    • There won’t be much to stack at $5.  If silver price doesn’t rise in the near future expect mines to rapidly scale back production.
       
      Most of the miners don’t even break even until near $30 or $32.  They could make a better return by opening up a grocery store.  So why would they increase production or invest more into the mine?  Instead they will start cutting back and shutting down.  Other author I listened too recently expects a major closing of exploration and many juniors falling off stock indexes in Canada this year.  This is a horrid sign for silver and gold production.  
       
      However, if you were super rich and had accumulated 50,000,000 ounces of silver and wanted to make a fortune this would be the route to take.  Crash the market, kill off all the juniors and watch production plummet.  Soon when above ground silver supplies run out the price for the real physical will spike rapidly. 
       
      We are just small fish with our thoughts on where the market will go.  It will be interesting to watch over the next couple of months as the SHTF.
       

    • $5 was just a figure of speech. LMAO

    • The spot shortages we are seeing are just the tip of the iceberg. Prices drop physical demand is going to skyrocket as paper players cry in their beer and dump shares.

    • A few years ago, the spot paper price of silver dropped below $10.  But you could not find an oz. of the stuff for sale at that price.  Any vendor who had any had already paid more than that to acquire it and wasn’t about to sell it at a +40% loss.  Anyone willing to pay $16 an oz., however, got whatever silver they could afford.  It was not long before the paper price returned to near the actual price and silver buying and selling resumed.
       
      I agree with Charlie.  Buy what you can when you can.  When the SHTF, it will be ALL about ounces and not how many paper coupons you traded for it.  They will be in their rightful place as tinder and outhouse supplies.  Silver and gold will be in their rightful place as well… as MONEY.
       

  2. There just seems to be so much noise—out there.
    Whew!
    Sure glad there are only 31 days until Jim Sinclair’s Birthday!

  3. @PowerBall:  I tend to agree with you about miners needing to be at 30-32 to function, BUT, if they do what Eric Sprott SUGGESTED to them some weeks ago, which is, to use there silver “as money”, don’t turn it over into fiat.  Then, there will be a different story regarding the miners.  I haven’t heard if that suggestion was followed by any of the mines.  I’d be interested to hear if anyone knows…

  4. OUR SILVER FATE LAY HERE:

    LONDON FUTURES AT 5 PM Central Time
    http://www.investing.com/commodities/real-time-futures

  5. I can only hope that there is a special place in Hell for the bankers

    • There is.  According to Dante, their rightful place in Hell is in the 9th level.  That is occupied by “the betrayers of trust”.  They will have a lot of company, though.  Most politicians, used car salespeople,  and lawyers will be there to keep them company.  They really DO deserve each other, you know.

  6. A private silver exchange/bank  setting it’s own phyzz prices,would work for the Super Rich Silver Giants, a place where people can buy and sell ,trade ..would put a stop to the luciferians..cheaper to buy street silver/gold than mining for it..crashing the market and luciferians..imo



  7. US SILVER CORP:
    Total Revenue = $93.4 million
    Net Income = $21.3 million
    $21.3 mil / $93.4 mil = 22.8%
    $35.12 X 22.8% = $8.00 PROFIT PER OUNCE
    $35.12 – $8.00 = $27.12 COMPLETE COST PER OUNCE
    ————————————————————————————–
    Now if the average price of silver had fallen below $27.12, US Silver Corp. would have started to get into what I call the BREAK-EVEN area. I would imagine if we had $20 an ounce silver in 2011, US Silver Corp. would have had a net income loss.

  8. Didn’t the fed just acknowledge that it would keep QE in place until unemployment reached 6.5% less than a month ago,
    Now this crap, please recognize it as propoganda and a buying opportunity.
    They ( the fed ) are working in concert with the banks,allowing them to make millions illegally, all the while controlling pm prices. Its working great for them at the time, with all the drivers in place metals will rise, make no mistake it is coming, but expect them to fight it tooth & nail.This drop in price was an absolute head fake, Fed led.
    Metals have made allot of noise lately, record silver sales at the mint and so on. I’m am quiet sure that the cartel has noticed the gain in pm interest. So, they call on the fed to release more media BS. ( THE BIG GUN )
    We are coming into a fever pitch in pm, have patients hang tough, stay the course, for we have reached overall world production cost  26.79 not much down side.
    .

  9. Silver is good for some things, but let’s not forget what else is important in life.
    Apologies if this is stepping off-topic:
     
    Yesterday morning one of my cats died.  He was a big, gray & black-striped tabby who liked to sit on my lap whenever I was sitting at the computer.  He seemed fine an hour earlier, but then when I walked back into the living room after preparing breakfast I found him just lying on the floor with his eyes & mouth open, and not breathing.  It must’ve been very sudden, so I do not think that he suffered.
     
    Yesterday was difficult.  I decided not to ‘sugar-coat’ things, and my 6-year old is better off because of her father’s adhering to reality.  But she talked nonstop, and asked many questions which I tried my best to answer.
     
    I dug the grave in a spot next to the pond, but waited until late afternoon – just before dark – before burying Ink. I must admit one reason I left him there in his box all day, wrapped inside my daughter’s little baby-blanket, was because I had this hope that he would awaken.  But of course that did not happen.
    -  -  -  -  -
    No amount of Silver will bring back my cat, who blessed my home for fifteen years.
    There’s a lesson in there, somewhere…
     
     (Edit: Damn it, that pic needs to be resized, as nobody wants to see a cat’s tit! @Marchas46, are you out there to work your magic on this pic?)

    • Sorry to hear of the loss of your pet.  They really do become family members after a while.  15 years is a long life for a cat so you must have done well by him.  I salute you for keeping to reality with your daughter.  That can be hard at first but it is definitely best in the long run.  We have done that with our kids when they were small and a family member passed on.  They adjusted well to the loss… better than my wife and myself, sometimes.

  10. Hi! Andrew sorry to hear about your cat Ink but I bet he had a great life living with you. All The Best my Friend, Charlie

  11. I just hugged my Toby (17.8 pounds of unconditional love) a little tighter.  Woolly (I hope you know I always call you that in an endearing way) you have stirred the emotions in me on numerous occasions in these posts.  I only wish this time it was for a different reason. I have to stop because I can’t see what I’m typing very well.

  12. The Academy Awards… and gold.  A message for the world.

    The video cannot be shown at the moment. Please try again later.

  13. There is one aspect of gold no one is talking about. China stated they will buy Iranian oil with gold last June. India also desires such transactions. China buying US gold with worthless USD’s, gives gold to Iran, JP Morgan crashes gold prices? The war in Syria is taking longer than they expected, but the US backed Al Qeuda does control an airport now. They have to take down Iran. Expect retaliation with N Korean tested bombs and missiles?Is this all connected? Gold to go lower despite miners cash costs? Why would the FOMC include “natural disasters” in their meeting notes? There is much more to this than stochastic bands and stackers….

  14. Okay, here’s another picture of Ink for you cat-lovers!

  15. One last look…

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