European Central Bank Head, Mario Draghi recently signaled Eurozone QE is Dead Ahead.
And the World has yet to deal with the Consequences of past and ongoing Fed, Japanese, and Chinese Monetary Policies. The coming Consequences of Central Bank QE and other Policies are reflected in the following Major Investors’ Actions and Analysts recommendations.
Submitted by Deepcaster:
“Peter Schiff, CEO of Euro Pacific Capital,… recently gave a presentation of his book….The Real Crash: America’s Coming Bankruptcy – How to Save Yourself and Your Country, which warns that the next crisis will dwarf that of 2008…
“Schiff reiterated a theme … that quantitative easing will never end, but the tolerance of the market for dollar-denominated assets will end and bring about the next crisis episode….”
“Euro Pacific Capital’s Peter Schiff Warns of The Great Crash,” moneynews.com, 08/19/2014
European Central Bank Head, Mario Draghi recently signaled Eurozone QE is Dead Ahead. And the World has yet to deal with the Consequences of past and ongoing Fed, Japanese, and Chinese Monetary Policies. The coming Consequences of Central Bank QE and other Policies are reflected in the following Major Investors’ Actions and Analysts recommendations.
1) An Eminence Grise of the Newsletter Writing Fraternity just reiterated his recommendation that his Subscribers get entirely out of One Very Major Sector except for select small holdings in one Subsector.
2) And a Multi-Billionaire Investor recently made a $2 Billion Bet that a Turning Point in a Very Major Sector is impending.
3) And Multi-Decade Charts “Forecast” a Major Trend Turn in a Major Sector.
4) And a near-billionaire Investor just Published a Book describing why that Trend Turn was a High Probability.
5) And consider the Prophetic comments from David Stockman
“Central banks all over the world have been massively expanding their balance sheets, and as a result of that there are bubbles in everything in the world, asset values are exaggerated everywhere. The Fed is exporting this lunatic policy worldwide….
“It’s only a question of time before the central banks lose control, and a panic sets in when people realize that these values are massively overstated.”
“Former Reagan Budget Head David Stockman: Fed Has Created Gargantuan Global Bubble,” David Stockman, moneynews.com, November 2013
6) And Deepcaster’s own Research Impels him to agree with all five of them.
The important point is the Rationale that each has for the Position Expressed.
1) Various Fundamental and Technical (“the Stock Market is exhausted”) Factors are cited to support Richard Russell’s recently expressed view that his “Subscribers (are) hopefully out of all common stocks except for Gold Miners.”
2) A $2 Billion Bet on a Market Crash via e.g., Puts on the S&P 500 placed by George Soros speaks for itself.
3) And that Multi-Decade Equities Bearish Expanding Wedge is the Ultimate Jaws of Death Technical Pattern forecasting an Equities Market Crash some time in the next few months—stay tuned for Deepcaster’s Timing forecasts in this regard.
4) And perhaps a Major Cause of the Impending Crash — the fact that Equities Markets have been artificially buoyed up by Fiat Money Printing by the Central Banks, coupled with Massive Sovereign and other Borrowing—a Hermageddan Credit Bubble as author Bill Bonner would put it.
5) And Jim Rickards joins Peter Schiff in identifying the Mega- Bankers as the Main Culprits
“Bankers’ parasitic behavior, the result of a cultural phase transition, is entirely characteristic of a society nearing collapse. Wealth is no longer created; it is taken from others. Parasitic behavior is not confined to bankers; it also infects high government officials, corporate executives and the elite societal stratum….
Jim Rickards, The Death of Money, June 2014
And regarding Parasitic Bankers helping other Bankers (to the detriment of virtually everyone else), David Stockman well describes the ostensibly American private for-profit Fed’s Gift to the Foreign Mega Banks.
“This profit stripping operation is simple. Foreign banks on Wall Street borrow from money market funds at an infinitesimal 3-6 basis points and then shuffle the loot down to 33 Liberty Street where the New York Fed pays them 25 basis points on the same funds. This gift is known as the IOER payment for excess reserves. It is a short-term trade which is rolled-over day after day and is absolutely risk free….
“This seems like a screaming outrage that couldn’t be true—especially because the real beneficiaries of the Fed’s largesse are Europe’s giant banks which are insolvent but socialized wards of the state. …
“Just as the Fed instructs foreign banks to ‘come and get it’ with its locked-in IOER/money market spread, it delivers the same message to the entirety of what has become the Wall Street gambling casino….
“The heart of the evil is interest pegging itself. That is, the replacement of market prices with administered prices—direct and indirect—throughout the financial system….
“Now that is the essence of Fed Policy. An all-powerful, un elected arm of the state has transformed itself into a crooked croupier and has no intention of leaving the casino.”
“Why The Fed’s Outrageous Gift to Foreign Banks—Risk Free Arbitrage On IOER—Is Just The Tip Of The Iceberg,” David Stockman, davidstockmanscontracorner.com, 08/23/2014
And it is not merely that The Fed is primarily engaged in helping its Mega-Bank Clients/Shareholders but that its policies are hurting Investors, Wage-earners and Retirees and indeed the entire Real Economy.
“The Fed has not made the world a better place with its interventions. It has created moral hazard, encouraged the formation of asset bubbles that eventually pop (leaving economic messes), widened the wealth inequality gap to record levels, discouraged savings and investment, severely penalized retirees on fixed incomes, encouraged spending, funded massive government deficit spending by monetizing the debts, lengthened the recession and likely reduced the number of jobs that would have been created if the economy had been allowed to take its normal course. Eventually, the Fed’s policy interventions will also have created debilitating, widespread consumer inflation, the cruelest tax against the poor and middle classes.”
Fred Hickey, (aka the High-Tech Strategist)
Indeed, a Fed-led Cartel has and is manipulating Prices in many markets and suppressing the prices of Gold and Silver. But one can use knowledge of these Manipulations to Profitable Advantage – see Note 2 re The Cartel.
6) But Deepcaster and Richard Russell both expect one more Major Upside Equities Surge to “New Record Highs” before The Great Crash Begins.
In this regard, see Deepcaster’s Forecasts and Buy Recommendations at Deepcaster.com and note how our Monitoring Fundamentals, Technicals and Interventionals has facilitated recent profitable positions (see Note 1 re Recent Profits Taken).
Of course, Intensifying Negative Geopolitical Events, and/or weakening Fundamentals, and/or rising interest rates could launch The Great Crash at any Time.
“Since the beginning of July, we’ve seen a sputtering stock market, a 65 basis point widening in high-yield spreads, a 15 basis point flattening of the Treasury curve (2s-10s) and a strong dollar (DXY US dollar index up 1.5%). This is typical of how the markets behave three or four months ahead of the onset of a Fed rate-hiking cycle.”
David Rosenberg, 08/14/2014
Apparently David Rosenberg and George Soros (and notwithstanding his destructive deconstructive political views) agree with Deepcaster about what is coming – mainly a Consequence of Major Central Bank Policies.
Finally, it is essential to Monitor The Real Numbers (e.g., US CPI at 9.8% and Real Unemployment at %) rather than the Bogus Official One (see Note 3).
To be forewarned facilitates being forearmed for Profit and Wealth Protection as we were in 2008 (see Note 2). In other words, to profit from the coming QE/Debt Consequences, closely monitor the Fundamentals, Technicals and Interventionals, and The Real Numbers, not the Bogus Official ones.
August 28, 2014
Note 1:Our attention to Key Timing Signals and Interventionals and accurate statistics has facilitated Recommendations which have performed well lately. Consider our profits taken in recent months in our Speculative and Fortress Assets Portfolios*
- 55% Profit on Double Short Euro Call on August 6, 2014 after just 106 days (i.e., about 200% Annualized)
- 65% Profit on Energy Storage & Management Company on July7 15, 2014 after just 342 days (i.e., about 70% Annualized)
- 95% Profit on Crude Oil Call on June 11, 2014 after just 73 days (i.e., about 470% Annualized)
- 75% Profit on Equity Index Call on May 27, 2014 after 21 days (i.e., about 1305% Annualized.)
- 30% Profit on Equity Index Call on May 13, 2014 after 34 days (i.e., about 320% Annualized)
- 75% Profit on Crude Oil Call on April 14, 2014 after 13 days (i.e., about 2000% Annualized)
- 60% Profit on Water Management Company on March 3, 2014 after 454 days (i.e., about 50% Annualized)
- 100% Profit on Crude Oil Call on February 10, 2014 after 27 days (i.e., about 1400% Annualized)
- 30% Profit on Equity Index Puts on February 5, 2014 after 8 days (i.e., about 1440% Annualized)
- 55% Profit on Water Management Company on January 15, 2014 after 406 days (i.e., about 50% Annualized)
- 140% Profit on Equity Index Call on December 27, 2013 after just 10 days (i.e., about 5200% Annualized)
- 40% Profit on Equity Index Call on December 19, 2013 after just 2 days (i.e., about 7500% Annualized)
*Past Profitable Performance is no assurance of future Profitable Performance.
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 July, 2014 Letter entitled “Profit, Protection, Despite Cartel Intervention” in the ‘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 3: *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 19, 2014
1.99% / 9.73%
U.S. Unemployment reported August 1, 2014
6.2% / 23.2%
U.S. GDP Annual Growth/Decline reported August 28, 2014
2.48% / -1.66%
U.S. M3 reported August 18, 2014 (Month of July, Y.O.Y.)
No Official Report / 4.69% (i.e., total M3 Now at $16.008 Trillion!)