Bernanke taper“The first panacea for a mismanaged nation is inflation of the currency: the second is war. Both bring temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.”   – Ernest Hemingway

Continuing QE is aimed mainly at propping up the Mega-Banks, but also is destroying the US$ as the World’s Reserve Currency.

A “No Tapering This Month” Decision some week soon may well be the Catalyst which launches Gold and Silver up, finally, into their Great Rally. Be prepared.

 


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Submitted by Deepcaster:

A Tapering Trend any time soon is most unlikely, but Market “Tantrums” emanating from Speculation about Tapers Advent provide Significant Opportunities for the Prepared.
Even if The Fed does begin a bit of Tapering in December, or March, or whenever, (unlikely) it is not likely to last (unless other Central Banks simultaneously increase liquidity to continue to prop up the fragile International Economy). Considering Why reveals Opportunities.

—Recall that every time in the last few months Tapering was treated in the Main Stream Media as if it were a Probability, Major Emerging Markets Equities swooned. The Developed World is The Major Market for the Emerging Market Economies. If Developed World Economies slow or contract so do those of the Emerging Economies.

 

Thus if Taper is implemented and therefore Stimulus is reduced, Economic Activity is reduced, for the following reasons:

 

—Since the Primary Effect of Fed Bond Buying is to Maintain low interest rates (Fed Demand for Treasuries and MBS keeps their values artificially high and thus their interest rates artificially low) Tapering would mean rising interest rates (which will happen anyway eventually) and Rising Interest Rates would devastate the Stock Markets World Wide, and …

 

—Corporate Earnings (which QE has kept artificially high by lowering borrowing costs) would be devastated because rising rates would increase borrowing costs on corporate debt.

 

—Any Housing Market recovery would be aborted by rising Mortgage rates.

 

—With Margin Debt at record levels, over-leveraged players would go into The Tank.

 

Opportunities flow from the aforementioned.

 

—Expect Markets to rally as “no Tapering this Month” Decisions are announced.

 

—In the unlikely event a Tapering is announced and Markets consequently Dip, buy the Dips, a halt to Tapering (and at some point/s even an increase in QE!) is likely to be announced soon thereafter. (This suggestion applies for the very short term only, since a Major Market Crash is likely to launch some time in 2014).

 
Trivium 5 oz 2—And do not bet that a Continuation of QE (i.e., no Tapering) will help the Real Economy (Japan’s QE has lasted for decades and that QE has not revived the Japanese Economy). QE merely artificially boasts Asset Prices, which is why Carl Icahn is correct when he says corporate earnings are a “mirage.”

 

—Continuing QE is aimed mainly at propping up the Mega-Banks, but also is destroying the US$ as the World’s Reserve Currency.

 

A “No Tapering This Month” Decision some week soon may well be the Catalyst which launches Gold and Silver up, finally, into their Great Rally. Be prepared.

 

Best regards,

 

Deepcaster

December 13, 2013

 

  1. “Tapering”. What a great idea.  Bring back Billy Sol Hurok and Big Jim McBob because the USG bond market bubble and one quadrillion in IR Swaps (along with probably everything else) would get “blowed up real good”!!
     
     

  2. Oh KAY, you SD-ers… I will admit that I laughed when I read this.  Now I know this is no laughing matter, but I can just imagine the looks on their well-fed faces there in the Fed board room as the hand appears and begins to write it out on the wall.  You have violated the supreme laws of the Universe.  It will not go well with you – and btw, your whole operation is a fraud which the whole world can see.  They will NOT have to call in a soothe-sayer to interpret what they already FEAR in their blackened hearts.
    True, but only if they pull their heads out so they can open their eyes.  What I don’t understand is how these banksters can stand the chronic clinching reflex while they do this!  Are you SERIOUS?!? Market rally, market crash, rally…crash…rally…crash, why, they are so turned around they don’t know what’s up but for my money, a long in SKID GREASE sounds like a fair bet.  They will need copious amounts, applied liberally and often to keep this pig going down the line, and a solid position in that commodity is like opportunity knocking.
    And no, I’m not being serious, I’m being sarcastic.

    • @undeRGRound
      Your prophecy matches my soundtrack. A suicidal baby Ben banker on the cover of a suicidal artists best album … it was all down hill from Nevermind, and in 2008 it was all downhill for the Federal Nirvana.
      ‘and I don’t have a gun … and I don’t have a gun … *<POP>*’

    • @WillNotBeASlave
      LOL, nice cut-n-paste! Get the band back together and I will sing lead for that. 
      The last guy is 6 feet under, and baby Ben and his U$D are not far behind…
       
       @hromano1030
      She was basically referencing the handwriting on the wall, where the King of Persia was judged 
      and found to be worthless, in God’s sight, so he was overthrown. MsLiberty is applying that to 
      our current system. It is likely MUCH worse than any old testament story had ever gotten. 
      As for the rest, it is likened to the bank$ter$ have their heads up their butts, and having to 
      remove them to open their eyes or blink, and how it would be wise to invest (very short term)
      in SKID GREASE or whatever it takes to keep this “pig of a market” sliding forward. But the sarcasm 
      comment at the end cautions anyone from jumping into these markets connected to Fiat. 
       
      That’s my take on that! 

    • LMAO!!! 
      He seems to have a tiny lil’ gnome taper in WNBAS’ pic above! 
       
       
      Our beautiful Lady, @MsLiberty, who posed for the 90% dimes, has uncovered an apropriate biblical 
      prophecy. It was in the book of Daniel, AGXIIK and I were discussing that very one in the last month. 
      Something about being weighed in the scales and being found wanting, or short. There are also things 
      in other parts about using an unjust weight (fiat for one) and how it is an abomination! our F’ed Govt.
      is promoting many more abominable* things, just last week a, F’ed Judge Declared Utah’s ban on 
      POLYGAMY to be unconstitutional, and not just that, but even polygyny, which means all forms of mutiple
      “marriage arrangements” including but not limited to 1 female, multiple males, 3 or more females, 3 or more
      males, and maybe more. He opened the flood gates. It’s on Breitbart, but I don’t have a link at hand… 
       
       
      Not that I think y’all don’t know what it means, but I looked it
      up on the “goog” and it says it so much better than I ever could,
      so I pasted the definition for the synonyms especially! Good Stuff!
       
      *a·bom·i·na·ble

      əˈbäm(ə)nəbəl/

      adjective
       

      1.

      causing moral revulsion.
      “the uprising was suppressed with abominable cruelty”

      synonyms:
      loathsomedetestablehatefulodiousobnoxiousdespicable,contemptibledamnablediabolical; More
       

  3. “A “No Tapering This Month” Decision some week soon may well be the Catalyst which launches Gold and Silver up, finally, into their Great Rally.”
     
    Possible but not likely.  Any no-taper message from the Fed will be met with hysterical buying on Wall Street.  This will push stock prices higher.  Money will come out of PMs so that it can go into stocks.  Starting a taper will cause the reverse. 
     
    So… taper => long PMs, short stocks…  no taper => long stocks, short / accumulate PMs
     
     

    • @Ed_b >>>Money will come out of PMs so that it can go into stocks.
      Damn it Ed. You’re always there to remind us all of the unreal reality aren’t you ;P
       
      You should have been an interpreter for Dorothy in the Wizard of Oz movie….
      Here’s my take, I believe it was a creation about socio-economic theory and practice;
      -Scarecrow = Useless Socialists, does no work and scares off the customers (Needs a brain)
      -Tin Man = Adventure Capitalists, chopping down all the trees in a rush because he can (Needs a heart)
      -Lion = Base animal instinct in man, would love to get back in charge but just doesn’t have the courage.
      -Dorothy = Little innocent girl oblivious to the realities of the world until she is ripped up by a tornado and placed in the twilight zone called reality where she has to advise these 3 fools – as only a child can – of why their paradigms are so ridiculous and irrational.
      -Wizard of Oz = at the end of the Yellow (Gold) Brick road lies the not so powerful wizard who only has an escape path for himself ….obviously the Fed Chairman with a plane ticket and packed bags.
      Modern Economists have got NOTHING on the Wizard of Oz … it’s the first text any self respecting college student should read before they pick up the official fictions :)

  4. The FED is expanding the currency in circulation at a record pace.  The world is buying Silver at a record pace and the short selling of Silver continues on the open market.  Something is going to squirt out of that paradigm.  This looks like a job for the ESF. 

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