-- Posted Friday, 9 May 2008 | Digg This Article
| Source: GoldSeek.com
DEEPCASTER LLC
www.deepcaster.com
DEEPCASTER FORTRESS ASSETS LETTER
DEEPCASTER HIGH POTENTIAL SPECULATOR
Wealth Preservation Wealth Enhancement
Financial and Geopolitical Intelligence
Many investors who are sentient, well educated and not in denial are aware that key Official Government Economic and Financial Data are of questionable validity.
Most of these same investors also suspect that governments and/or Central Banks manipulate Major Markets. But they might not be aware that Market Intervention and Data Manipulation are far more pervasive than generally believed.
As well, such investors may not have thought systematically about how one copes with and profits from such Intervention and Data Manipulation. Thus Deepcaster will briefly address that question.
In order to understand the scale and breadth of such Data Manipulation and Market Intervention, Deepcaster suggests reading his January, 2008 Letter “Market Intervention, Data Manipulation, Increasing Risks, The Cartel End Game and Latest Forecast” available at www.deepcaster.com. There is convincing evidence that a Market Intervention and Data Manipulation Regime is organized by a Cartel* of Central Bankers and their Allies, led by the (private, for-profit) U.S. Federal Reserve, in conjunction with certain government agencies.
*We encourage those who doubt the scope and power of Intervention by a Fed-led Cartel of Central Bankers and Allies to read Deepcaster’s January, 2008 Letter containing a summary overview of Intervention entitled “Market Intervention, Data Manipulation - - Increasing Risks, The Cartel End Game, and Latest Forecast” at www.deepcaster.com>LatestLetter. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org 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.”
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Consider, for example, Official Figures for Consumer Price Inflation (CPI) generated by the U.S. Bureau of Labor Statistics (BLS). The most recent data from the BLS indicates that the CPI is growing at an annual rate of over 4%.
But even the average citizen knows this 4% figure cannot be right. After all, all of us buy energy and food and we must, therefore, have an intuitive sense that a 4% rate considerably underestimates real inflation.
Fortunately, shadowstats.com calculates CPI the old-fashioned way - - the way it was calculated prior to 1990. Using pre-1990 methodology reveals inflation to be a more believable, and much higher, figure. Specifically, CPI is running just under 12% annually according to shadowstats.com. Now that figure is more credible to those of us who have to buy food and energy daily. So the reality is that we have a dramatically increasing inflation.
It is easy to see why we have inflation because, once the Fed stopped reporting the creation of M3 (the broadest measure of money in circulation), in March, 2006, M3 has skyrocketed to a nearly 18% annual rate of increase, approaching a four year doubling time rate. Seeing this massive monetary inflation goes a long way to explaining increasing price inflation.
Consider also Gross Domestic Product (GDP) - - The Official Figures released in April claim that real US GDP was at a positive 2.4% in the first quarter. However, if one considers what is really happening in the economy, the more reasonable calculation of GDP by shadowstats.com indicates that GDP annual growth is contracting by 2.7% annual rate in the first quarter of 2008.
Indeed, shadowstats.com starkly paints a picture of our likely future in the title of its most recent Alert: “Chances of Economic Rebound Now Are Nil, GDP, Jobs Data Appear Rigged, Other Numbers Confirm Intensifying Inflationary Recession.” Flash Update, May 2, 2008, shadowstats.com.
And, to make matters worse, the Traditional Safe Haven from inflation and risk, Gold, has during the periods of extreme financial market turmoil in March and April, 2008, been taken down in price from over $1000/oz down to around the mid-$800 level. Deepcaster and others, including the Gold AntiTrust Action Committee, have offered considerable evidence that the Cartel* of Central Bankers is the culprit behind these dramatic and devastating Takedowns. See Deepcaster’s Alert of 12/25/07 “A Strategy for Profiting from Cartel Intervention in Gold, Silver, Crude Oil and Other Tangible Assets Markets” in the Alerts Cache at www.deepcaster.com.
But there is a Profitable Refuge from Market Intervention and Data Manipulation. That Profitable Refuge lies in the Strategy described in the aforementioned Alert, certain characteristics of which we outline here:
1) Recognize that the “Buy and Hold” strategy increasing fails (primarily as a result of Intervention). The Eminence Grise of Newsletter writers, Harry Schultz perhaps put it the best when he recently stated that “buy and hold no longer works anymore, even with Gold.”
2) Educate yourself about the realities of the marketplace using alternative data sources such as Deepcaster, Gold Anti-Trust Committee, and shadowstats.com. Gathering and staying attuned to authentic information regarding the marketplace can save one much financial grief and put one in a position to profit.
3) Track the Interventionals as well as the Technicals and Fundamentals. Tracking the Interventionals daily can often, but not always, give one excellent clues about The Cartel’s next likely Interventional Moves. Such clues which are essential to preserving wealth and making profits. Deepcaster’s recent tracking of The Interventionals, for example, allowed him to make a recommendation which resulted in subscribers making 105% profit in 13 days.
4) Be prepared to go both long and short Major Market Sectors - - long near the bottoms of Interim Takedowns and short near Sector Tops. The Interventionals are essential to helping identify these tops and bottoms.
5) Be aware of the overall Geopolitical Landscape in order to gain an adequate understanding of how that Landscape might affect the present and future direction of the markets. It is essential that one understand the motivations of the major players in the market and the resources at their disposal.
For example, a major motivation of the U.S. Federal Reserve and other Central Banks is the protection and enhancement of the legitimacy of their Treasury Securities and Fiat Currencies as Measures and Stores and Value. Therefore, one can understand that one of their major goals will be to de-legitimize Gold, Silver and the Strategic Commodities, including especially Crude Oil, as Stores and Measures of Value. With this in mind, the periodic takedowns of Gold and Silver become understandable. Moreover, such an insight applied daily to the market can result in a tremendous edge in understanding market performance, present and future.
Moreover, regarding the assets at The Cartel’s disposal, if one tracks the Repurchase Agreement Pool daily, as Deepcaster does, and is aware of the other Interventional tools that The Cartel has at its disposal, then one gains a considerable edge.
Consider just one example. If one visits the Bank for International Settlements (the Central Bankers Bank) website (www.bis.org) and follows the path Statistics>Derivatives>Table 19 and following, one can see the entire range of trillions of dollars worth of OTC Darkly Liquid Derivatives available for use in Market Manipulation.
For example, over $7 trillion in Derivatives was available for Commodities price manipulation as of June, 2007 - - a large chunk of these are available to manipulate the Crude Oil price. Also, as of June 2007, something in excess of $48 trillion in OTC Derivatives were available for Foreign Exchange Price Manipulation, and a whopping $346 trillion in interest rate contracts were available for Interest Rate Manipulation all along the Yield Curve and not just at the short end.
Of course, Fundamentals and Technicals still do matter, since the Cartel would lose considerable clout if its machinations were broadly exposed. Therefore, it makes sense that The Cartel would create and/or use Fundamentals and Technical Patterns as occasions for Market Intervention and would use/create geopolitical events to achieve the same ends.
Indeed, the actions of The Cartel must be fairly plausible in order to maintain plausible deniability. [Thus Deepcaster considered Fundamentals, Technicals, and Interventionals to make, for example, it recent Forecasts for Equities, Gold, Crude Oil and the U.S. Dollar, as well as its profitable recommendations posted at www.deepcaster.com.]
Even so, there are times when other Cartel concerns trump plausibility and these are manifested in market anomalies. For example, consider the period when the Great Financial Crises came to a head in the Bear Stearns collapse and “buyout” in March, 2008. In this period of Great Financial Stress in the markets, Gold and Silver, instead of reflecting these crises by skyrocketing up (which would have happened in a normal non-manipulated market) Gold and Silver were taken down substantially.
Such developments should be a lesson to the wise that something more is going on in the Major Markets than Normal Market Action. If that recognition is reflected in attention paid to the aforementioned principles, it can result in achieving a Profitable Refuge from Data Manipulation and Market Intervention.
Deepcaster
May 9, 2008
DEEPCASTER LLC
www.deepcaster.com
DEEPCASTER FORTRESS ASSETS LETTER
DEEPCASTER HIGH POTENTIAL SPECULATOR
Wealth Preservation Wealth Enhancement
Financial and Geopolitical Intelligence
Gravitas, Pietas, Virtus
-- Posted Friday, 9 May 2008 | Digg This Article | Source: GoldSeek.com
