Deepcaster: EXPOSÉS REDUX

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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  • 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