Deepcaster: Forecasts Facilitating Gain

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.

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

Forecasts Facilitating Gain

 

“The Fed is printing a lot of money. They are forcing people into markets. You shouldn’t be buying securities because you’re forced to buy them by zero rates. You should buy them because you think they’re great value. They’re great value only relative to zero interest rates. They’re not great value on an absolute basis….

 

“If you print enough money, everything is subsidized – bonds, stocks and real estate….

 

“I don’t know when it’s going to end. But my guess is it’s going to end very bedly. 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.”

 

          Stan Druckenmiller, Legendary Hedge Fund Manager, CNBC, 03/05/13

 

 

Given Stan Druckenmiller’s Stellar Investment and Trading Record – 30% return over 30 years – including a most profitable stint as George Soros’ Portfolio Manager at the Quantum Fund, it is no surprise that his two Forecast Alternatives have it Nailed.

 

But both Outcomes are Possible Simultaneously, and both are highly likely!

 

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 (e.g., 9.24% in the USA per Shadowstats – Note 1)

 

Result: Stagflation is impending, or, more likely, Hyperstagflation.

 

This gives rise to the Question, given this Scenario, how does one Profit and Protect?

 

Normally, with Inflation in the Wind, Gold and Silver would be soaring, and Gold especially given the prospect of Economic Stagnation, as well.

 

But they are not. Why?

 

John Embry of Sprott Asset Management probably has it right when he says there are two reasons. 1) The Powers-that-be (aka The Cartel – Note 2) want to hide the fact that the International Financial System is in such bad shape and 2) They are trying to position themselves to take advantage of it.

 

This entails suppressing the Price of Gold and Silver (Note 2), so they can buy it themselves.

 

And Buy they are. Central Banks all over the World are Buying increasing amounts of Physical Gold, and as we have reported, are planning to Buy More.

 

And Physical Silver supplies are even tighter. Inventories are minimal and both Industrial and Investment Demand is increasing.

 

But the Increasing Demand for Physical coupled with the Cartel Suppression of the Paper Price is leading to an increasing Divergence between the Paper Price and the Price for Physical for Delivery. Conclusion: get Physical and get Gain.

 

In sum, regarding Precious Monetary Metals, Jim Sinclair’s advice is ours. Do not sell. Hold your positions or add to them, as appropriate for your portfolio. One, or likely both, of the Druckenmiller scenarios will play out and trump Cartel Price Suppression Activities Eventually.

 

So what other Opportunities for Profit and Protection Spring from Druckenmiller’s and Deepcaster’s Forecasts and the Actual Economic and Financial Situation?

 

Regarding Equities, the Central Banks-Generated Liquidity via QE etc. generates continuous Pressure to lift them Ever Higher.

 

But the Fundamentals (unemployment, Debt Saturation, Economic Stagnation) simultaneously Pressure them lower. So we will get both Bear and Bull at different times – Deepcaster forecasts Timing in his latest Letter and Alerts.

 

And, finally, acquire Assets which are both Inflation and Deflation resistant. First among these are Agricultural Assets or interests in them, several of which we have recommended – Farmland, Food Producers and those who supply or support them. Get Green Gold.

 

Best regards,

 

Deepcaster

March 8, 2013

 

 

Note 1: 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 March 8, 2012
7.7%     /     23.0%

U.S. GDP Annual Growth/Decline reported February 28, 2013
1.61%        /     -2.20% (i.e., a Negative 2.2%)

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

 

Note 2: 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. I know what everyone is thinking…her name is Jackie Guerrido. 

  2. Mi Encanta….and clean shaven, too.

  3. The worst of it is the fed makes no secret of what they (the fed) are doing, just go to their website! The public just does not get it, and when you try to explain to them the “real deal”, they think you are lying. Ask some unsuspecting co-worker what backs their money, many will say the gold the govt has. Ignorance is no longer bliss, it is deadly. I know, I know I’m preachin’ to the choir, but it is frustrating.

    • Not only do they not “get it” most think your nuts. I gave up about a year ago. No more Paul Revere for this dog. 

    • It’s not easy being up against terminal normalcy bias but that seems to be epidemic in this country.  The folks who would most likely be listening to us now are the depression era folks.  Not many of them left now.  They are in their 80s and 90s so don’t have a great deal of interest in “the future” at this point.  Those who could benefit most, though, are those in their 50s and 60s.  Many of them have significant financial resources that could be brought to bear to improve their situation but do not see any reason to do so.  Paper has served them well in the past, so it should do so in the future as well.  
       
      Unfortunately for those with this attitude,  they do not seem to recognize the brewing of the perfect financial storm.  Massive government debt… in truth, massive government, period!  Incompetent Fed and Gov officials.  Banks running amok.  Our currency being printed and thereby devalued towards extinction.  Gov officials seeking to remain in power at any cost, linking any objection to their Draconian policies as personal attacks on their own persons… and over-reacting to these supposed attacks via buying massive amounts of ammo and new anti-civilian armored vehicles plus readying a large fleet of soon to be armed drones (watch for false flag of an unarmed drone being shot down by a Gov employee pretending to be an American militia member), followed very soon thereafter by cries of “we MUST protect our drones!”.  Yeah, right.
       
      There are clouds on the horizon and occasional faint booms of thunder… heard by those of us who are AAA (Awake And Aware).  Wait… are those the first few drops of rain I sense?  Could be.  Soon it will be raining harder, then harder still. The wind will come up.  The sheeple will rouse from their usual state of stupor, only to look around, blink a few times, and wonder what is happening.  At no time will they question WHY it is happening.  It is truly beyond their ken.  This is why they reject our comments on the subject.  The most likely future is so far outside their comfort and experience zones that they cannot relate to it.  At all.  Because of this, the people warning them simply MUST be kooks.
       
      Nature is pretty amazing when we think about it.  Every species out there has a niche in which it thrives.  They also have a survival feature that enables them to either catch their prey or avoid becoming prey.  Some have great natural camouflage.  Others are fleet of foot.  Still others have horns and hooves with which to defend themselves.  Sheeple, of course, have none of these.  People, on the other hand, have the giant brain with which we are endowed.  It is this brain that allows us to reason, to speak, and to work together on various projects.  It is axiomatic that any creature that does not excel in their survival feature will become prey at some point.  Thus we have people prepping and sheeple schlepping… as we both proceed through life.  We can all stop worrying about the sheeple now. They are fulfilling their niche just as are we.
       

    • Yeah you are right that the Fed doesn’t hide their intentions.  One of the problems is that the FOMC minutes don’t get released after 5 years.  Here is a link to the June 2003 minutes.  If you have time, read it.  They planned on operation twist, zirp, QE, lowering inter bank lending rates and a exploding balance sheet. The main driving point of the minutes was the Fed fund rate going to zero bound.  When the Fed decided to do this, they were all in.  All their chips were on the table.   They had some real reservations about the balance sheet going nuts if they decided to monetize the bonds directly.  Well, they were right.  There is no possible way they will ever unwind these bonds and MBS.  The balance sheet will go to 3, 4, 5, 6 then 30 trillion.  Everyone talks about Greenspan and Bernanke but it was Vincent Reinhart that introduced some of these ideas with the presentation of this June FOMC meeting. 
      http://www.federalreserve.gov/monetarypolicy/files/FOMC20030625meeting.pdf
      http://blogs.wsj.com/economics/2009/05/06/fomc-2003-transcripts-bernanke-willing-to-lower-rate-to-zero/
      Another major point of the meeting was how the Fed synthetically kept rates from rising.  They used put options and interest rate swaps to keep rates from rising.   Here is a very good article by zerohedge explaining this synthetic interventions by the Fed.
      http://www.zerohedge.com/article/did-fed-its-stealthy-synthetic-bet-keep-yields-low-become-next-aig
      Here is a masterful video to explain how the Fed used put options to keep rates low.


       
      The Fed has lost control.  They lost control in 2003.  The manipulation and control of the markets is the only thing left to keep the whole system from imploding.  It will crash but when?  Nobody knows but people like Stanley Druckenmiller can see a storm coming.  I think most on this website can see the same thing.  It’s the timing that nobody can predict.  The system died in 2008.  Now all we have left is a illusion of markets and economies. 
       
       

    • IMO, this is one of the best examples of someone explaining how the markets really work.   Thank you Rob Kirby for explaining the actions of the Fed and the ESF to people like myself.  I have listened to this interview probably 10 times. 


    • 90% of my friends don’t believe me that the Fed is dumping $85billion a month in new currency into the system. Even when I show them the M2 graph off the feds own web site. “That is fake or a mistake” sheeple with their heads buried up their asses.

  4. I’d like to “deepcast” her.  and “I don’t know when it would end’  but it “definatley wouldn’t end badly”  

  5. if I was gonna continue my little play on words, I would say…..’when ya got the greatest tits in the world my rate of interest is manipulated, but my wife says it would probably say it’s a gross misallocation of my resources and if I don’t stop lookin at the picture it’s gonna end badly  :-)
     
    Sorry DOC ….couldn’t resist

  6. http://www.youtube.com/watch?NR=1&feature=endscreen&v=nqp0AJe38Ec
    Great Interview by Jim Rodgers…On the other side she has a great bustline.. I prefer Brazilians

  7. You must listen to this latest interview at SGT regarding Barrick Gold. Unbelievable.
     


  8. @The Doc, thank you for putting up this post, although after seeing that picture of the weather forecaster I lost all ability to concentrate on whatever this post was supposed to be about.

  9. Think Maria Molina. Fox News weather girl

  10. Just note of thanks to Ed_B, Duck and Doc !

  11. The other questions are:
    1) What would be the style of the collapse? Will it be like the Roman empire, the Soviet Union, the German Weimar Republic, etc?
    2) How will it look afterward? Will new barbaric types of empires form on the American land, the USA will be transformed into another new country like Russia or a new dictator will replace democracy with fascism?

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