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Coping with Power Moves in The Cartel's 'End Game'



-- Posted Friday, 24 April 2009 | | Source: GoldSeek.com

DEEPCASTER LLC

www.deepcaster.com

DEEPCASTER FORTRESS ASSETS LETTER

DEEPCASTER HIGH POTENTIAL SPECULATOR

Wealth Preservation         Wealth Enhancement

Financial and Geopolitical Intelligence

 

 

“A Federal Reserve document obtained by the AP shows that the stress tests take a harsher view of loans than of other troubled assets. This would mean that banks holding large loan portfolios would be viewed as being at greater risk than banks holding derivatives and debt securities.  Wall Street’s former investment banks and the megabanks—JP Morgan, Citi and Bank of America—have large securities holdings, while regional banks tend to have a relatively larger portfolio of loans.

The AP raises the possibility that the reason the tests are biased in this way isn’t because the whole loan portfolios are actually riskier but because regulators want to make the Wall Street firms and the big banks look healthier.” (emphasis added)

 

“Stress Tests Are Biased In Favor Of Wall Street”

John Carney, April 24, 2009

http://www.businessinsider.com/stress-tests-are-biased-in-favor-of-wall-street-2009-4

 

Thus the evidence continues to accumulate that U.S. Fed/Treasury policies favor the Mega-Bank Members and Allies of the Fed-led Cartel*, and disfavor Regional and Local Banks and, indeed, disfavor all of Main Street.

 

Indeed, Fed/Treasury policy of Bailing out the very Biggest Banks and allowing smaller Banks to bear disproportionate burdens, and even to fail, bears a remarkable similarities to what Fed policies caused in the 1930’s - - The Performing Assets of the smaller Institutions were scarfed up at fire sale prices, while Main Street’s Assets were devalued or outright confiscated, as under the Gold Reserve Act of 1934.

 

Acquisition of Performing Assets (while laying off Toxic Assets on the U.S. Taxpayer) is one of the Key Elements in the Implementation of The Cartel’s ‘End Game’ as Deepcaster has described in his Alert of 8/13/06 “Massive Financial-Geopolitical Scheme Not Reported By Big Media” and his June 2007, Letter “Profiting From The Push To Denationalize Currencies And Deconstruct Nations” available in the “Latest Letter Archive” and “Alerts Cache” at www.deepcaster.com.

 

But even more ominously, The Fed-led Cartel* has recently implemented another Power Grab about which Deepcaster and a few others have been warning for Years. Consider:

 

“A single clause in Point 19 of the communiqué issued by the G20 leaders amounts to revolution in the global financial order.

 

‘We have agreed to support a general SDR allocation which will inject $250bn (£170bn) into the world economy and increase global liquidity,’ it said. SDRs are Special Drawing Rights, a synthetic paper currency issued by the International Monetary Fund that has lain dormant for half a century.’

 

In effect, the G20 leaders have activated the IMF’s power to create money and begin global ‘quantitative easing’. In doing so, they are putting a de facto world currency into play. It is outside the control of any sovereign body…” (emphasis added)

 

“The G20 Moves the World a Step Closer to a Global Currency: The world is a step closer to a global currency, backed by a global central bank, running monetary policy for all humanity”

Ambrose Evans-Pritchard, April 7, 2009

The London Telegraph

 

Deepcaster and a few others have for years claimed that one (of the several) Nefarious Cartel Goals was the destruction of the U.S. Dollar as the World’s Reserve Currency.  This would result in the devaluing and the stealth transfer of the Wealth of hundreds of millions of investor-citizens around the world to the Creators of the New Currency - - the U.S. Fed-led Cartel and allies.

 

Deepcaster has specifically referred to the “Amero or other functionally equivalent currencies” as candidates for such a currency. Now we know that the IMF’s SDR’s are “Global Monetary candidates” as well.

 

And is it not incredible that a U.S. President would endorse such a communique’ – a communique’ which takes a Giant Step toward destroying the U.S. Dollar’s Status as The World’s Reserve Currency!

 

A former governor of the Bank of England and Ellen Brown perceptively consider the implications of this Giant Step in what Deepcaster describes as The Cartel’s ‘End Game.’

 

Which naturally raises the question, who or what will serve as this global central bank, cloaked with the power to issue the global currency and police monetary policy for all humanity? When the world’s central bankers met in Washington last September, they discussed what body might be in a position to serve in that awesome and fearful role. A former governor of the Bank of England stated:

 

“[T]he answer might already be staring us in the face, in the form of the Bank for International Settlements (BIS). . . . The IMF tends to couch its warnings about economic problems in very diplomatic language, but the BIS is more independent and much better placed to deal with this if it is given the power to do so.”1

 

And if the vision of a global currency outside government control does not set off conspiracy theorists, putting the BIS in charge of it surely will. The BIS has been scandal-ridden ever since it was branded with pro-Nazi leanings in the 1930s. Founded in Basel, Switzerland, in 1930, the BIS has been called “the most exclusive, secretive, and powerful supranational club in the world.”

 

…In Tragedy and Hope: A History of the World in Our Time (1966), Dr. Carroll Quigley revealed the key role played in global finance by the BIS behind the scenes. Dr. Quigley was Professor of History at Georgetown University, where he was President Bill Clinton’s mentor. He was also an insider, groomed by the powerful clique he called “the international bankers.” His credibility is heightened by the fact that he actually espoused their goals. He wrote:

 

“I know of the operations of this network because I have studied it for twenty years and was permitted for two years, in the early 1960’s, to examine its papers and secret records. I have no aversion to it or to most of its aims and have, for much of my life, been close to it and to many of its instruments. . . . [I]n general my chief difference of opinion is that it wishes to remain unknown, and I believe its role in history is significant enough to be known.”

 

Quigley wrote of this international banking network:

 

“[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.” (emphasis added)

 

The key to their success, said Quigley, was that the international bankers would control and manipulate the money system of a nation while letting it appear to be controlled by the government. The statement echoed one made in the eighteenth century by the patriarch of what would become the most powerful banking dynasty in the world. Mayer Amschel Bauer Rothschild famously said in 1791:

 

“Allow me to issue and control a nation’s currency, and I care not who makes its laws.”

 

Mayer’s five sons were sent to the major capitals of Europe – London, Paris, Vienna, Berlin and Naples – with the mission of establishing a banking system that would be outside government control. The economic and political systems of nations would be controlled not by citizens but by bankers, for the benefit of bankers. Eventually, a privately-owned “central bank” was established in nearly every country; and this central banking system has now gained control over the economies of the world. Central banks have the authority to print money in their respective countries, and it is from these banks that governments must borrow money to pay their debts and fund their operations. The result is a global economy in which not only industry but government itself runs on “credit” (or debt) created by a banking monopoly headed by a network of private central banks; and at the top of this network is the BIS, the “central bank of central banks” in Basel.

 

Behind the Curtain

 

For many years the BIS kept a very low profile, operating behind the scenes in an abandoned hotel. It was here that decisions were reached to devalue or defend currencies, fix the price of gold, regulate offshore banking, and raise or lower short-term interest rates. In 1977, however, the BIS gave up its anonymity in exchange for more efficient headquarters. The new building has been described as “an eighteen story-high circular skyscraper that rises above the medieval city like some misplaced nuclear reactor.” It quickly became known as the “Tower of Basel.” Today the BIS has governmental immunity, pays no taxes, and has its own private police force.4 It is, as Mayer Rothschild envisioned, above the law.

 

The BIS is now composed of 55 member nations, but the club that meets regularly in Basel is a much smaller group; and even within it, there is a hierarchy. (emphasis added)

 

“THE TOWER OF BASEL: DO WE REALLY WANT THE BANK FOR INTERNATIONAL SETTLEMENTS ISSUING OUR GLOBAL CURRENCY?”

Ellen Brown, April 17, 2009

http://www.lemetropolecafe.com/pfv.cfm?PfvID=7763

 

As well, Ellen Brown reports economist Henry C.K. Liu’s Acute observations (which are not surprising to us) regarding the effect of The Cartel’s policies:

 

In a May 2002 article in The Asia Times titled “Global Economy: The BIS vs. National Banks,” economist Henry C K Liu observed that the Basel Accords have forced national banking systems “to march to the same tune, designed to serve the needs of highly sophisticated global financial markets, regardless of the developmental needs of their national economies.” He wrote:

 

 “[N]ational banking systems are suddenly thrown into the rigid arms of the Basel Capital Accord sponsored by the Bank of International Settlement (BIS), or to face the penalty of usurious risk premiums in securing international interbank loans. . . . National policies suddenly are subjected to profit incentives of private financial institutions, all members of a hierarchical system controlled and directed from the money center banks in New York. The result is to force national banking systems to privatize . . . .

 

 BIS regulations serve only the single purpose of strengthening the international private banking system, even at the peril of national economies. . . . The IMF and the international banks regulated by the BIS are a team: the international banks lend recklessly to borrowers in emerging economies to create a foreign currency debt crisis, the IMF arrives as a carrier of monetary virus in the name of sound monetary policy, then the international banks come as vulture investors in the name of financial rescue to acquire national banks deemed capital inadequate and insolvent by the BIS.” (emphasis added)

 

Ironically, noted Liu, developing countries with their own natural resources did not actually need the foreign investment that trapped them in debt to outsiders:

 

Applying the State Theory of Money [which assumes that a sovereign nation has the power to issue its own money], any government can fund with its own currency all its domestic developmental needs to maintain full employment without inflation.

 

When governments fall into the trap of accepting loans in foreign currencies, however, they become “debtor nations” subject to IMF and BIS regulation. They are forced to divert their production to exports, just to earn the foreign currency necessary to pay the interest on their loans. National banks deemed “capital inadequate” have to deal with strictures comparable to the “conditionalities” imposed by the IMF on debtor nations: “escalating capital requirement, loan writeoffs and liquidation, and restructuring through selloffs, layoffs, downsizing, cost-cutting and freeze on capital spending.” Liu wrote:

 

“Reversing the logic that a sound banking system should lead to full employment and developmental growth, BIS regulations demand high unemployment and developmental degradation in national economies as the fair price for a sound global private banking system.” (emphasis added)

 

The Last Domino to Fall

 

While banks in developing nations were being penalized for falling short of the BIS capital requirements, large international banks managed to escape the rules, although they actually carried enormous risk because of their derivative exposure. The mega-banks succeeded in avoiding the Basel rules by separating the “risk” of default out from the loans and selling it off to investors, using a form of derivative known as “credit default swaps.”

 

However, it was not in the game plan that U.S. banks should escape the BIS net. When they managed to sidestep the first Basel Accord, a second set of rules was imposed known as Basel II…

 

Imposing the mark-to-market rule on U.S. banks caused an instant credit freeze, which proceeded to take down the economies not only of the U.S. but of countries worldwide. In early April 2009, the mark-to-market rule was finally softened by the U.S. Financial Accounting Standards Board (FASB); but critics said the modification did not go far enough, and it was done in response to pressure from politicians and bankers, not out of any fundamental change of heart or policies by the BIS.

 

And that is where the conspiracy theorists come in. Why did the BIS not retract or at least modify Basel II after seeing the devastation it had caused? Why did it sit idly by as the global economy came crashing down? Was the goal to create so much economic havoc that the world would rush with relief into the waiting arms of the BIS with its privately-created global currency? (emphasis added)

 

“THE TOWER OF BASEL: DO WE REALLY WANT THE BANK FOR INTERNATIONAL SETTLEMENTS ISSUING OUR GLOBAL CURRENCY?”

Ellen Brown, April 17, 2009

http://www.lemetropolecafe.com/pfv.cfm?PfvID=7763

 

Indeed! The “Economic Havoc” phase has begun. But in Deepcaster’s view the Cartel’s End Game plan is not one in which the world merely “rush(es) with relief into the waiting Arms of the BIS with its privately-created global currency,” but rather one in which the world is forced to “rush with relief…to…the BIS’ privately-created Global Currency.”

 

And in the process the IMF/BIS Controllers -- the Cartel -- become vastly richer and more powerful at the expense of many investors – citizens around the world. See Deepcaster’s “Investor Advantage: Revisiting The Cartel’s ‘End Game’”(03/06/09) and “Protecting Democracy & Profits From The Cartel Threat” (12/19/08) in the “Articles by Deepcaster” cache at www.deepcaster.com

 

The Strategy - Background

 

Deepcaster has developed a Strategy for Investor-Citizens around the World to cope with this Threat, key elements of which we describe here.

 

But in order to appreciate The Strategy one must first understand how the Cartel maintains and enhances its power. One must thus understand its Overt and Covert Interventional Regime and how it manages the Crises of which it is The Primary Cause.

 

That is, the Fed-led Cartel* of Key Central Bankers and favored financial institution is managing The Crises largely through their Overt and Covert Market Interventional Regime.  That Overt and Covert Interventional Regime is designed not only to manipulate the Major Markets (in particular the Precious Metals, Equities, and Strategic Commodities Markets) but also to hide key Economic and Financial Realities from the American people and Investors worldwide.

 

*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 December, 2008 Letter containing a summary overview of Intervention entitled “A Strategy for Profiting from the Cartel’s Dark Interventions & Evolving Techniques” and Deepcaster’s July, 2008 Letter entitled “Market Intervention, Data Manipulation - - Increasing Risks, The Cartel End Game, and Latest Forecast” 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 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.”

  

As background to understanding the ongoing implementation of the Cartel’s Interventional Regime and “End Game” consider:

 

The Root Cause of our Current Crises and The Systemic Threat to Democracy and Profits

 

“…in every major US financial panic since at least the Panic of 1835, the titans of Wall Street – most especially until 1929, the House of JP Morgan – have deliberately triggered bank panics behind the scenes in order to consolidate their grip on US banking.  The private banks used the panics to control Washington policy including the exact definition of the private ownership of the new Federal Reserve in 1913, and to consolidate their control over industry such as US Steel, Caterpillar, Westinghouse and the like.  They are, in short, old hands at such financial warfare to increase their power.

 

Now they must do something similar on a global scale to be able to continue to dominate global finance, the heart of the power of the American Century.

         

That process of using panics to centralize their private power created an extremely powerful concentration of financial and economic power in a few private hands, the same hands which created the influential US foreign policy think-tank, the New York Council on Foreign Relations in 1919…”

 

     Behind the panic:  financial warfare over future of global bank power

        F. William Engdahl, October 10, 2008

 

 

Consider the implications of the F. William Engdahl quote regarding “global bank power.”  As Engdahl points out, the evidence is increasing that the recent financial panic and economic distress is and has been pre-planned as a part of Cartel Strategy to increase power and, in our view, to implement its “End Game.”

 

To understand the Cartel’s likely “End Game” we must understand the Root Cause.

 

The Root Cause of The ‘End Game’ Threat lies in the structure, functioning and policies of the private-for-profit “U.S.” Federal Reserve.

 

Various international private banks, several of which are headquartered in Europe, own the “United States” Federal Reserve Bank.

 

These International Bankers, acting through their “U.S.” Fed, make money by creating money out of “thin air” as eloquently described by the Dean of the Newsletter Writers, Richard Russell:

 

“I still can’t get over the whole Federal Reserve racket.”

 

Consider the following - - let’s take a situation where the U.S. government needs money.  The U.S. doesn’t just issue United States Notes, which, of course it could.  These notes would be dollars backed by the full faith and credit of the United States.  No, the U.S. doesn’t issue dollars straight out of the U.S. Treasury.

 

This is what the U.S. does - - it issues Treasury Bonds.  The U.S. then sells these bonds to the Fed.  The Fed buys the bonds.  Wait, how does the Fed pay for the bonds?  The Fed simply creates money “out of thin air” (book-keeping entry) with which it buys the bonds.  The money that the Fed creates from nowhere then goes to the U.S.  The Fed holds the U.S. bonds, and the unbelievable irony is that the U.S. then pays interest on the very bonds that the U.S. itself issued.  (With great profit to the private owners of The Fed - - Ed. Note)  The mind boggles.

 

The damnable result is that the Fed effectively controls the U.S. money supply.  The Fed is …not even a branch of the U.S. government.  The Fed is not mentioned in the Constitution of the United States.  No Constitutional amendment was ever created or voted on to accept the Fed.  The Constitutionality of the Federal Reserve has never come before the Supreme Court.  The Fed is a private bank that keeps the U.S. forever in debt - - or I should say in increasing debt along with ever rising interest payments.

 

How did the Fed get away with this outrage?  A tiny secretive group of bankers sneaked through a bill in 1913 at a time when many in Congress were absent.  Those who were there and voted for the bill didn’t realize (as so often happens) what they were voting for (shades of the shameful 2002 vote to hand over to President Bush the power to decide on war with Iraq).”

 

Richard Russell, “Richards Remarks,” dowtheoryletters.com, March 27 2007

 

After President Wilson signed the Federal Reserve Act into law in 1913, he reportedly said, “I am a most unhappy man, I have unwittingly ruined my country…a great industrial nation is now controlled by its system of credit…the growth of the nation, therefore, and all of our activities are in the hands of a few men…” Thus we have an early statement about the threat to “democracy” occasioned by The Fed.

 

Insightful economic forecaster Ian Gordon notes several negative consequences of the nearly 100-year reign of The Fed, consequences with which we cope today.

 

“Since its inception in 1913, the Federal Reserve Board has been responsible for almost 95% devaluation of the U.S. Dollar.  All this has been achieved through its ability to continually inflate the money supply.

 

And, between 1985 and 2005, the Federal Reserve Board has increased the money supply by five times.  This extraordinary money creation is merely the catalyst for debt creation.  In a fiat money system, money is debt…there is absolutely no way this money can ever be repaid except by continued inflation.  But, now that the credit bubble is blown up, inflation is no longer an option; bankruptcy looms.”

 

   The Federal Reserve…What Has It Done For You Lately? ”

Ian Gordon, December 29, 2007 (www.axisoflogic.com)

 

Market Intervention, Data Manipulation & The Cartel “End Game”

 

As Richard Russell points out the creation of ever-increasing debt and interest payments is unsustainable. Thus there will inevitably be a Day of Reckoning.

 

In order to stave off the Day of Reckoning (which, we reiterate, is coming mainly as a consequence of their dramatic monetary inflation and “easy credit” policies), the Fed-led Cartel* of Key Central Bankers and Favored Financial Institutions has created, and for the past several years has operated, an extraordinary “financial regime” built on dramatically increasing trillions of dollars (nearly $683 trillion as of June, 2008 - - see www.bis.org (path:  statistics>derivatives>Table 19 and ff.) of Dark OTC Derivatives available for the manipulation of major markets ranging from Precious Metals to Crude Oil and Energy, to Equities and Strategic Commodities (see Deepcaster’s July, 2008 Letter at www.deepcaster.com).

 

To be sure The Cartel’s massive and increasing use of derivatives to intervene (Overtly and Covertly via Primary Dealers) in a wide variety of markets is fraught with danger (e.g. through actual and prospective counterparty failure as we are now seeing, as well as prospective Systemic Failure).  Deepcaster, Warren Buffett and Jim Sinclair have pointed out the dangers of OTC derivatives.  Indeed, Buffett calls them “toxic” and Sinclair has aptly described the financial system as “sitting on a…  trembling mountain of derivatives…think Weimar Republic.”  Unfortunately, Deepcaster, Jim Sinclair, and Warren Buffett are correct.

 

Second, the evidence indicates that The Cartel has developed a nefarious “End Game” plan, which we describe below.

 

The Crisis Intensifies - – The “End Game” Implementation Begins

 

Deepcaster has described The Cartel’s apparent ‘End Game’ in detail in its June, 2007 Letter “Profiting From the Push to Denationalize Currencies and Deconstruct Nations “ and its August 13, 2006 Alert “Massive Financial-Geopolitical Scheme Not Reported by Big Media” posted in the “Archives” at www.deepcaster.com.  Fortunately, a Bill was introduced in the U.S. Congress (H.Con.Res.40), which opposes this nefarious scheme.  But consider the following key aspects.

Data Manipulation

Masking the True State of the Economy and Financial Markets, is another aspect of The Cartel Regime –  Data Manipulation.

 

For example, Real U.S. Consumer Price Inflation was over 10% annualized from 2006 through 2008 and is still about 8% in early 2009 contrary to Official Numbers which show it at zero in March, 2009.  Real U.S. Unemployment is now nearly 20%! And Real U.S. GDP is at a negative 4%, while real M3 (monetary creation) is running at 11% annually, all according to the quite credible calculations of shadowstats.com.  Shadowstats.com calculates the numbers as they were calculated prior to the “gimmicking” of Official Statistics that became widely implemented beginning in the 1980s and early 1990s.

 

Not surprisingly, Real U.S. GDP “growth” is a negative number -- about a negative 4%, according to shadowstats.com, as opposed to Official Figures showing just a negative 1%. 

 

That the U.S. economy (about 25% of the international economy) is headed in the direction of Serious Stagflation (a Kondratieff Winter) is pretty clear from the very credible shadowstats.com statistics cited above.

 

As well, the U.S. Dollar’s purchasing power has declined over 30% in the past half-decade and it appears that The Cartel expects (and likely are even pushing) the U.S. Dollar to go into further and further decline, over the medium term, and to continue their other policies, until there is a “No-Salvation, No-Return Systemic Crisis.”

 

It would appear that The Cartel-charted-course toward a Stagflationary Recession/Depression, and thus toward the attempted implementation of their “End Game,” is on course.

The ‘End Game’

The clue to the character of The Cartel “End Game” is the Strategic and Prosperity Partnership Agreement signed by Presidents Bush, Fox of Mexico and Martin of Canada in Waco, Texas in March, 2006.

 

This multi-faceted Agreement was signed without the approval of Congress, or the knowledge of most of the American people.

 

It is clear from the multifaceted “End Game” Plan reflected in this Agreement why the Bush Administration was so resistant to defending U.S. borders.

 

It is also clear that One Key Component of the End Game Plan is the dissolution of the United States Dollar and other currencies into a New Currency, one “candidate” for which is the “Amero.”  Indeed, two bits of anecdotal evidence that this plan is being taken seriously are:

 

1)     That the “Swiss Portfolio” Investment Advisory Company has already touted the “Amero Alternative” on its website; and

2)     The London investment firm Jeffries International Ltd.’s Vice President, Steven Pervis, said that the coming “Amero” will have “a big impact on everybody’s life.”

 

Another New Currency “candidate” is the IMF-issued SDR’s referred to above – the first de facto Global Currency! Thus we are impelled to assume that The Cartel is pushing the Amero and/or SDR’s, or their functional equivalent, as the eventual, and their favored, alternative to the U.S. Dollar, Given that Policy, it is also clear that The Cartel certainly intends to continue its interventional efforts at suppressing the prices of Gold and Silver. They do this in order to prevent their attaining increasing legitimacy as the ultimate store and measure of value money, and thus as competitors to their New Global, and Regional Currencies, their existing Fiat Currencies and their Treasury Securities.

 

In the event of the success (from The Cartel’s perspective) of the continuing implementation of the End Game Plan including destruction of the U.S. Dollar at The World’s Reserve Currency, doubtless The Fed-led Cartel intends to transmogrify itself into The (still private and still very profitable) Central Bank responsible for issuing the Amero/SDR’s and/or their functional Equivalent.  Additional details regarding The Cartel’s “End Game” are provided in Deepcaster’s August 3, 2008 Alert and other key aspect of June 2007 Letter available at www.deepcaster.com.

 

The key question for the long-term is whether The Cartel will be able to pull it off.  Certainly they have been The Primary instrument in causing The Financial and Economic Crises, and have thus far been successful in instituting Regional (e.g. the Euro) and, now, Globally (e.g. IMF SDR’s) currencies.

 

If The Fed is not able to continue to lead its Cartel to success in implementing its “End Game,” the No-Salvation, No-Return Systemic Crises that its policies are creating, the ensuing Mega-Crisis would clearly and publicly be its responsibility.

 

In that event, is it not highly likely that The Fed would be unable to continue as a privately owned for-profit entity?  One can hope.

 

A Solution Which Addresses Current Realities  

 

Rather, and as an alternative to The Cartel’s planned “End Game,” the U.S. Treasury could assume the functions of the Fed and begin to function as it is constitutionally authorized to do, as The United States National Bank issuing United States Notes (as President J.F. Kennedy authorized the U.S. Treasury to do before he was killed) solidly backed by the monetary metals, Gold and Silver. However, we investor--citizens must cope with the system as it now exists. Thus we offer…

 

A Strategy for Profit and Protection

 

Normally, (that is to say in a Genuine Free Market situation) the go-to “Safe Haven” Assets in times of Financial Crisis would be the Precious Monetary Metals Gold and Silver, as well as other tangible assets such as Strategic Commodities.

 

We say “normally” because nearly every time another Financial Market and/or Economic Crisis has come prominently into the public eye in recent years The Cartel* has successfully taken down the price of what would normally be the Safe Haven Assets - - the Precious Monetary Metals. 

 

A prime example occurred during the much-publicized demise of Bear Stearns in March, 2008, which was accompanied by a vicious Takedown of Gold and Silver.  In a non-manipulated Market, given the fact that Bear Stearns reflected great and increasing weaknesses in the Financial System, Gold and Silver should have skyrocketed.  But instead they were dramatically taken down.

 

Similarly, during the Fall, 2009 Market Crash Gold was taken down from $900/oz. during September, 2008, down to the low $700s when it should have exploded upward.

 

Yet, it launched again toward $900 in December, 2008 and has actually traded above $900 for most of 2009.

 

So the question now, near the beginning of May, 2009, is it different this time around?  Have Gold and Silver finally thrust off the shackles of Cartel Intervention?   Or will The Cartel be able once again to cap and take down the prices of these Precious Monetary Metals and Strategic Commodities?   Deepcaster has addressed this question in a Forecast he recently issued for the likely fate of Gold, Silver, Crude Oil & the U.S. Dollar in the Alerts Cache at www.deepcaster.com.

 

One thing is certain:  The Cartel will certainly attempt again to take down Gold, Silver and Strategic Commodities at the earliest opportunity because the Strategic Commodities and Precious Monetary Metals are Competitors as Stores and Measures of Value with the Central Bankers’ Treasury Securities and Fiat Currencies, including their New Currencies.

 

Thus Deepcaster has developed is a Strategy which accommodates Cartel Interventional attempts and at the same time provides excellent Profit Opportunities, whether the Interventional attempts are successful or not.

 

A major premise of The Strategy is that one can certainly remain a Hard Assets Partisan (as Deepcaster is) while at the same time insulating oneself from future Takedowns.  The following points provide an outline of The Strategy (particularly as applied to the Gold and Silver Markets) and are designed to help avoid Portfolio unpleasantness, or even possible financial ruin, in the future, as well as to profit along the way:

 

1)                 Recognize that The Cartel is still Potent, as difficult as that may be psychologically for Deepcaster and other Hard Asset Partisans to acknowledge.  The Cartel is still the Biggest Player in many markets and, if the timing and market context are propitious, the Biggest Player makes Market Price.  In addition, The Cartel has the advantage of de facto controlling the structure and regulation of various marketplaces and that is a tremendous advantage; just as the Hunt Brothers years ago discovered much to their dismay and misfortune, when they tried to corner the Silver Market.

2)                 Accumulate Hard Assets near the Interim Bottoms of Cartel- induced Takedowns.

3)                 In order to know when one is near the bottom of a Cartel-generated takedown, it is essential to take account of the Interventionals as well as the Technicals and Fundamentals.  Paying attention to the Interventionals facilitated Deepcaster recommending five short equities positions as of early September 2008 (just before the Fall Crash) all of which we subsequentially recommended be liquidated quite profitably.

4)                 For example, regarding Gold & Silver, near such Interim Bottoms, accumulate a combination of the Physical Commodity (Deepcaster prefers “low premium to melt” bullion coins) and well-managed Juniors with large reserves.  (Deepcaster provides a list of such Junior Candidates in our December 20, 2007 Alert “A Strategy for Profiting from Cartel Intervention” available in the Alerts Cache at www.deepcaster.com.)  The “Physical” and “Juniors” are for holding for the long-term as a Core Position.

5)                 Then, to the extent one wishes to speculate on the next “long” move, one should buy the major producers or long-term call options on them.  These latter positions are for ultimate liquidation at the next Interim Top and are not for holding for the long-term.

6)                 However, there will be a time when The Cartel price capping is ineffective and Gold & Silver make record moves upward.  The benefit of this Strategy is that one will likely be long in one’s speculative positions when this happens.

7)                 Near the next Interim Top, liquidate the long options and majors.  Again, in order to know when we are close to the next Interim Top, it is essential to monitor the Interventionals, as well as Fundamentals and Technicals.

8)                 Near that Top, sell short or buy puts on Majors.  We re-emphasize the Majors as preferred vehicles for trading positions because such positions are more liquid and tend to be quite responsive to Cartel moves.

9)                 At the next Interim Bottom, cover your shorts and liquidate your puts and go long again to begin the process all over again.  We emphasize that it is essential to consider the Interventionals as well as the Fundamentals and Technicals in order to determine the approximate Interim Tops and Bottoms.

10)             Finally, Hard Assets Partisans have the opportunity to become involved in Political Action to diminish the power of The Cartel.  It is truly outrageous that the average unsuspecting citizen, and prospective retiree, can and does put his hard won assets in Tangible Assets only to have those assets effectively de-valued by Cartel Hard Assets Takedowns and Taxpayer-funded Bailouts of Cartel Members and favored financial Institutions.  This is extremely injurious to many average citizens in many countries who are saving for the rainy day or retirement and have their retirement and/or reserves effectively taken from them.  In order to help prevent this and similar outrages, we recommend three possibilities:

 

a)                 Become involved in the movement (first to audit and then) to abolish the private-for-profit U.S. Federal Reserve as Deepcaster, ex-Presidential candidate Rep. Ron Paul, and legendary investor Jim Rogers, all have advocated.  Rep. Paul has introduced the ‘Audit the Fed’ Bill H.R.1207 (which already has 55 Members of Congress as co-sponsors), as well as the Federal Reserve Abolition Act, H.R.2755. The non-Profit activist organization www.carryingcapacity.org strongly supports these bills.

b)                 Join the Gold AntiTrust Action Committee, which works to eliminate the manipulation of the Gold and Silver markets (www.gata.org).  GATA is a non-profit organization, which makes a great contribution by gathering evidence regarding the suppression of prices of Gold, Silver and other commodities.

c)                 Work to defeat The Cartel ‘End Game.’  Deepcaster has laid out the evidence regarding the Ominous Cartel “End Game.”  Clearly The Cartel is sacrificing the U.S. Dollar to prop up Favored International Financial Institutions and to maintain its power.  But this sacrifice cannot continue forever.

 

If this aforementioned Strategy is employed effectively, it can result both in an increasing Core Position in Gold and Silver, and in considerable profit along the way.

 

Additional insights and details regarding this Strategy which are essential to profiting from the Fed’s Policies, are laid out in Deepcaster’s article of 9/26/08 entitled “Protection and Profit from Bailouts Failed to Doom” and 6/30/07 “Profiting from Cartel Intervention” in the Articles by Deepcaster Cache at www.deepcaster.com.

 

Protection and profit required Proactivity and attention to the Interventionals, Fundamentals and Technicals, not “Buy and Hold.”  Buy and Hold” rarely succeeds anymore as current market conditions attest.

 

Indeed, the Key Point of the Strategy for Protection and Profit is careful attention not only to the Fundamentals and Technicals but also to the Interventionals.  These Overt and Covert Cartel-generated Interventions have the power to move markets as those who study the matter can attest.

 

Thus, the Key to Profit and Protection is a Strategy:  Successful Investors must become Long-Term Position Traders, with their trading choices informed by the Interventionals, as well as the Fundamentals and Technicals.  Moreover engaging in the Actions suggested above can help prevent The Cartel’s solidifying its Superpower status.

 

 

 

Deepcaster

April 24, 2009

 

 

 

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, 24 April 2009 | Digg This Article | Source: GoldSeek.com




 



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