-- Posted Friday, 2 February 2007 | Digg This Article
DEEPCASTER LLC
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Financial and Geopolitical Intelligence
Deepcaster readers may remember our article which circulated in the first week of December, 2006 - - “Derivatives Deluge Multiplies Real Risks and Potential Profits.”
In that article we noted that the Bank for International Settlements (“BIS” – The Central Bankers Bank) had just, in November, 2006, issued a report indicating that as of June 30, 2006, $262 TRILLION in OTC (over the counter) interest rate derivatives existed.
Significantly, that figure was 24% higher than the figure reported previously for interest rate derivatives for the period ending December 31, 2005 - - a mere six months earlier. We noted then, and we reiterate, that that massive amount of derivatives gives The Fed-led Central Bankers Cartel a tremendous capacity to intervene in the long-term interest rate market.
We also noted that those derivatives positions create a potentially massive multiplier effect, and that while the multiplier effect could create tremendous profits through leverage for derivative holders, they could also help create fatal disasters such as they did for Long Term Capital Management.
We concluded that The Cartel’s large derivative positions are apparently used to intervene in a variety of major markets including interest rates, gold, silver, and crude oil.
It is critically important to note that, in the current Interventional Investment Universe, profiting from Interventions requires the ability to take either “short” or “long” positions, as circumstances warrant.
Thus, if one can determine ongoing and “successful” Patterns of Intervention, one can make Forecasts and “long” and “short” investment choices with reasonably high probability of achieving profitable outcomes.
For example, Deepcaster made such a Forecast regarding long-term interest rates at the beginning of July, 2006. Specifically, Deepcaster made an investment recommendation (based in part on an analysis of Cartel Interventional Patterns) on the future course of the bond market. Specifically, Deepcaster recommended purchase of a long position in a bond fund to profit from the forecast move.
Deepcaster’s Forecast was correct. Deepcaster suggested selling that position a few weeks later for an annualized 17% profit. (Not bad for an investment in a low-risk bond fund holding primarily U.S. Treasury Securities, if we may say so.)
Similarly, Deepcaster Forecast last years late-year takedown in the crude oil market and those following our recommendation could have made a 170% profit annualized.
Earlier this week Deepcaster Forecast the beginning of yet another significant move in the U.S. Treasury Securities market. That Forecast strengthening of long-term U.S. Treasury Securities (and corresponding reduction in long-term interest rates) has begun.
Now, at the beginning of February 2007, Deepcaster Forecasts impending major moves in gold, silver and crude oil.
These moves will be the result of the interplay of the genuine market forces, geopolitical events and the “Dark” forces of Cartel Intervention.
But though these major moves may or may not, as the case may be, reflect the long-term prospects for gold, silver and crude oil, it is well to bear in mind their long-term prospects - - long-term prospects which are very bullish for each.
Deepcaster
February 2, 2007
DEEPCASTER LLC
www.deepcaster.com
Wealth Preservation Wealth Enhancement
Financial and Geopolitical Intelligence
Gravitas, Pietas, Virtus
-- Posted Friday, 2 February 2007 | Digg This Article
