The next very few months present an extraordinary number of Mega-Market Movers and Moves Impending:
*Russian retaliation for Syria attack
*The U.S. Debt Ceiling Crisis
*The Post-German Election Eurozone Crises
*The Dwindling Physical Gold Supply vs. Demand “Crises”
*U.S. Treasury Bond Bubble Bursting Crisis
We identify the impending key market movers and indicate how Investors may best Profit and Protect:
Submitted by Deepcaster:
The Most Obvious is Syria. President Obama has said that any Strike would be Surgical and Limited in Scope. But little consideration has apparently been given to probable Retaliation by the variety of U.S. Opponents including most likely by the Proxies of Major opponents – Proxies provide “Plausible Deniability”. Consider that Russia, for example, is not only an Ally of the Assad Regime, but also has its sole Major Mediterranean Naval Base in Syria. And, as we predicted in our Alert earlier this week, President Putin has now said Russia would assist Syria if the U.S. attacks Syria. And, while not likely to retaliate, China and the U.K. and others have declared a policy of Non Support of the U.S.
But some Major Retaliation is likely, highly likely as are dramatically increased Tensions Arising from the other impending Crises facing World Markets. All of the Following Market Movers have Market Moving Hookers which we address in our Forecasts in our latest Alert.
- The U.S. Debt Ceiling Crisis (a Mover because the U.S. is believed by many to be the World’s strongest Economy today – an unsubstantiated belief)
Unfortunately, if the USA does not raise the Debt Ceiling, the Markets and Economy will likely Crash. But more Debt means more money printing which will accelerate Inflation. Even if The Fed does begin a modest tapering tis Fall, it will not last. The wise will buy Inflation Protective Assets, Now.
- The U.S. Budget Crises, (same analysis, and consider that the USA has $17 Trillion in unpayable Debt and over $100 Trillion in unfunded downstream liabilities)
Unfortunately, the USA will likely continue spending beyond its means. Buy inflation Protective Assets.
- The Post-German Election Eurozone Crises
It is likely that the European Economy and the Euro’s decline will accelerate after the German election (because the Eurozone Powers strongly favor Chancellor Merkel’s re-election) since virtually all of the Serious Unsolved Structural Problems of the Eurozone remain.
Specifically, Insolvency in several Peripheral Countries, and overwhelming indebtedness in others like France – come to the fore once more. No recovery in sight. Generally, stay short Europe.
Gold’s recent Bull Launch has been temporarily interrupted by the Indian Rupee’sWeakness (causing diminished Purchasing Power for Gold hungry Indians) and Tariffs and the perception (probably false) that Syria and other Major Challenges are being handled, so there is less need (it is claimed) for a Safe Haven. And, of course, The Cartel (Note 2) is quite happy to use the foregoing as Catalyst to implement another Precious Metals Takedown. Nonetheless, the dwindling supplies of Available Physical Gold (vis à vis demand) virtually ensures the Bull Trend will continue.
- Fiat Currency “War” i.e. Price Hyperinflation Risk Crises
Many countries are now degrading the Purchasing Power of their Currencies including especially the U.S., Japan and Eurozone. Result: the Real Numbers show Key Nations’ Economies are already Threshold Hyperinflationary. (e.g., the U.S. at 9.62% see Note 1 – Shadowstats.) As to the $U.S., significantly, Egon von Greyerz of Matterhorn Asset Management contends that the United States’ “falsification” of GDP, Inflation, and employment numbers is a sign that the U.S. Dollar is beginning to lose its World’s Reserve Currency status. (See Shadowstats.com for the Real Numbers Note 1.)
We agree. If all were healthy with the Economy, Markets, and U.S. Dollar, what need would there be to falsify the numbers?! And these lead to the …
- U.S. Treasury Bond Bubble Bursting Crisis
As the perception that the U.S. Economy is recovering continues to bemuse Investors who rely solely on the Mainstream Financial News Media for their “News”. Long-dated U.S. Treasuries continue to weaken for the 4 th Month in a row as we earlier forecast, due to increasing Inflation generated by Massive Central Bank Money Printing.
Indeed, when (not if) continuing QE (i.e. Bond Buying) no longer serves to support Treasuries, i.e. to suppress Interest Rates i.e. to keep the 10-Yr. yield below or at 3%, that will also be a signal that Financial Collapse is impending, because that will signal The Fed has lost control of the Bond Market. Such has not happened yet but we expect it will. N.B. We have already seen the beginning, with the 10-year yield rocketing up from 1.7% to nearly 3% recently. We already saw counterparty defaults on Paper Assets in the 2008-09 Crash, and we will see them again, as The Bond Market Crashes beginning in 2014, or perhaps earlier.
- Worsening Fukushima Crises (400 Tons of Radioactive H2O created daily registering up to 1800 Millisieverts – lethal to humans in 4 hours) threatens Fisheries and Japan’s economy – third largest in the World
After over two years, the Intensifying Radiation Disaster at Fukushima has not been solved. This could have a catastrophic effect on World Fisheries and Japan’s economy, third largest in the World. One Consequence: A Negative Effect on Global Economic Growth.
- The Unemployment Crisis
Not just in the Western World, where Real Unemployment in the U.S. is 23.3% and over 25% in Spain, Greece, and Italy, but also elsewhere increasing Unemployment Promises more Social Chaos. The native-born Labor Participation Rate is 62.8% in the USA, the lowest in 35 years, while the Foreign-Born Participation Rate is up to 66.9%, as Employers seek Cheap Foreign-Born Labor.
- And The Big One is that there are nearly $700 Trillion Notional Value of OTC Derivatives outstanding in the Global Financial System. But annual World GDP is only about $70 Trillion. This excessive leverage virtually ensures another Financial Crisis and Mega-Bank Failures and consequent Depositor Bail-ins, (i.e., confiscation of depositor funds) according to Existing Law in many jurisdictions. (See 9/3/13 Posting and Video at www.jsmineset.com)
The Big One of Nearly $700 Trillion OTC Derivatives indicates the International Financial System is still overleveraged to the Hilt. As U.S. long-dated Treasury Securities Weaken (see Deepcaster Forecasts re Timing) Interest Rates Rise. Eventual Result: Counterparty Failures and a Financial Crisis Worse than 2008-2009. The Failed Mega-Banks in many jurisdictions are entitled to and will implement Bail-ins, i.e., Confiscation of Depositors Money (Yours and Mine) a la Cyprus.
Profit and Protect by Removing Significant Deposits from Mega-Banks and Buying Quality Miners Stocks and Buying and taking Personal Delivery of Real Money — Physical Gold and Silver.
September 6, 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 August 15, 2013
1.36% / 9.62%
U.S. Unemployment reported September 6, 2013
7.3% / 23.3%
U.S. GDP Annual Growth/Decline reported August 29, 2013
1.62% / -1.75%
U.S. M3 reported August 20, 2013 (Month of July, Y.O.Y.)
No Official Report / 4.55% (i.e, total M3 Now at $15.304 Trillion!)
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.