-- Published: Friday, 5 October 2018 | Print | Disqus
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Savvy Investors know that there are several Key Market and Economic Realities which are NOT reported on by the Mainstream Financial Media, usually because of the Economic Interests of Media Owners and Allies — Key Power Centers of the “Deep State”.
Instead, the “Deep State” Media substitutes False or Unimportant News to avoid reporting on Unpleasant Realities.
So, given that Knowledge is Power and that awareness of these Realities is essential to Wise Investment Decisions, Deepcaster summarizes the most important of these so Investors can Profit and Protect.
1) There is a Fed-led Globalist Mega-Bank Cartel which has, for years, and still is, suppressing the Prices of Gold and Silver. Their Main Motivation is to Keep Investors in their Treasury Securities and Fiat Currencies, thereby to maintain their Power. GATA.org has conclusive evidence this has been and is happening but the MSFM will not report on it. Deepcaster has forecast the Timing of the Precious Metals breakout from this ongoing Price Suppression.
2) The Economic Statistics produced by most Major Nations are Bogus, i.e., they are “Political Numbers”. In China, one must look at, e.g., Power Usage rather than Official Numbers to gauge China’s Economic Health. In the USA, shadowstats.com is the Choice for The Real Numbers. Consider the following CHART. Bogus Official Numbers vs. Real Numbers (per Shadowstats.com)
Annual U.S. Consumer Price Inflation reported September 13, 2018
2.70% / 10.48%
U.S. Unemployment reported September 7, 2018
3.85% / 21.2%
U.S. GDP Annual Growth/Decline reported October 2, 2018 (Q2)
2.87% / -1.34%
U.S. M3 reported September 6th, 2018 (Month of August 2018, Y.O.Y.)
No Official Report / 3.97% (e) (i.e., total M3 Now at $18.937 Trillion!)
3) The Fed is a Private For-Profit Entity which Acts in the Interest of its Mega-Bank Owners which it purports to Regulate. In this connection, consider how the Actions of Private for-Profit Fed facilitated the Crash of 2008 but enabled its Mega-Bank Owners, Executives and Allies to escape relatively unscathed.
“There is no clearer example of this than the formation and aftermath of the financial crisis of 2008. In the years leading up to the crisis, Alan Greenspan and the Federal Reserve kept interest rates artificially low. This enabled commercial bankers to originate subprime mortgage loans and investment bankers to package these loans into highly-rated securities that could be sold to institutional investors.
“The commercial bankers made billions of dollars in origination and servicing fees and the investment bankers made billions more in underwriting fees and sales and trading revenue. The $1 trillion total of subprime and other junk mortgages originated by 2007 was dwarfed by the $6 trillion in mortgage derivatives that had been created by the banks out of thin air on the back of the $1 trillion of actual mortgages. These mortgages and derivatives were rated “AAA” in many cases due to the flawed risk models, venality and sheer malfeasance of the major rating agencies such as S&P, Fitch and Moody’s. …
“By the late summer of 2007, the financial dominoes began to fall. Two Bear Stearns mortgage hedge funds collapsed.
“Matters stabilized by December, 2007 as major sovereign wealth funds in Singapore, China, Abu Dhabi and Kuwait were prevailed upon by the Treasury to bail-out major banks including Citibank, Morgan Stanley and Merrill Lynch. But the panic reemerged with the failure of Bear Stearns in March 2008, the collapse of Fannie Mae and Freddie Mac in June 2008 and finally the bankruptcy of Lehman Brothers in September 2008.
“In late September 2008, stock markets crashed, bank runs began and the U.S. was just days away from a sequential collapse of all major banks. Intervention by the Federal Reserve and FDIC, including unlimited deposit insurance, guarantees on all money market funds, massive money printing and multi-trillion dollar currency swaps with the European Central Bank were needed to alleviate the panic. …
“The middle class might have been resigned to their losses if they had seen some trace of accountability on the part of elite bankers, CEOs and regulators. That never happened. …
“In fact, no bank CEOs or senior executives were ever held accountable. They all kept their jobs or moved seamlessly to other financial firms. After two years of increased scrutiny, the bank CEOs resumed the practice of huge bonuses and stock options that rose on a stock market propped up by the Fed. Treasury Secretary Tim Geithner secretly communicated with Attorney General Eric Holder at Obama’s Department of Justice with a request to avoid prosecution of bankers because it could hurt confidence and destabilize the financial system. Holder agreed. There were no penalties, prosecutions or terminations among the top bank elites at all.
“Meanwhile, the middle class was decimated. They had lost half their savings and many lost their jobs and homes. It was the worst financial and economic setback since the Great Depression. …
“The burden was not equally shared by all. In fact, the burden was placed exclusively on the middle class while the elites escaped completely.” [Emphasis added. Ed.]
“Yes, the Elites Have Rigged the System Against You,” Jim Rickards, 09/28/2018
4) The Mega Banks and Allies are at the Center of the “Deep State” and are committed Globalists and thus are opposed to Nationalists and Internationalists like President Trump. It is thus not surprising that they push for Regional Governing Entities (e.g., the European Union) and Global Ones — (e.g., the IMF and BIS) and Trade Deals (e.g., the T.P.P.) because they diminish the power of the citizenry of Independent Nations.
5) One Globalist Deep State Goal is elimination of the $US as World Reserve Currency and its replacement by IMF SDRs and/or (the Deep State’s least favored option) a multi Reserve Currency “System” led by a Gold-backed Chinese Yuan.
6) An Essential Component of the Globalists’ Program is the encouragement of Mass Immigration into the USA and Europe. This greatly weakens the National Cohesion of these Nations, all to the Benefit of the Globalists. Mass Immigration comes with a tremendous Economic, Environmental and Security Costs to the USA and other Western Nationals. Consider the Negative Impacts on the USA:
LEGAL IMMIGRATION COSTS & CONSEQUENCES
— KEY POINTS from Balance.org and CarryingCapacity.org
· Background: world population increases by about 80 million/year. The population carrying capacity has already been exceeded in many parts of the world, as shown by mass poverty, environmental degradation, and civil strife.
· Pressure to come to USA will only increase—1.6 Million LEGAL Immigrants settle in the U.S.A. every year: Indeed the Average since 2005 is 1.6-1.7 Million Annually
o California e.g. receives 400,000 legal immigrants per year! (U. S. Census)
U.S. Taxpayers Costs—$330 BILLION PER YEAR NET (after subtracting Taxes Immigrants pay) from legal immigration alone, i.e., $3.3 TRILLION prospectively for the next Decade (see full study of NET Costs at carryingcapacity.org) Does NOT include additional Net COSTS to States and Localities = $758 MILLION per Year for Each Congressional District. That is, it costs on average $1000 per person in Federal Taxes per year! 62% of Costs are for “free” (i.e., U.S. Taxpayer-funded) Health Care, & Welfare [The Numbers of Illegal Immigrants are about one fourth that of legal and generate about one-fourth the costs.]
EMPLOYMENT CONSEQUENCES
Professor Computer Science, U.C. Davis, Norm Matloff’s Blog “Vast Majority of H1B and related visa hires are Cheap Labor Hires”, i.e., there are American Workers who would do those jobs.
Confirmed by Williams / CarryingCapacity.org Study—5.9 MILLION AMERICANS DISPLACED from JOBS SINCE 2005 by IMMIGRANT WORKERS. See carryingcapacity.org.
ECONOMIC CONSEQUENCES
Population Growth usually increases Aggregate GDP but ALWAYS DECREASES PER CAPITA GDP—the True Test of Nations’ Wealth.
Compare Bangladesh and New Zealand with same size GDP BUT Bangladesh has 4 times the Population and thus is much poorer per capita.
The inverse relationship between population growth and individual wealth is also seen in the U.S. Since the Clinton Administration, an additional 44 million immigrants has arrived in the U.S. and the U.S. per Capita GDP has declined since the Clinton administration [Williams study at carryingcapacity.org].
PERSONAL SAFETY ENVIRONMENT
“Help me, Dad.” Kate Steinle’s dying words impel all of us to redouble our efforts to oppose Sanctuary Cities, Reduce Legal and Stop Illegal Immigration with inter alia a Wall. The Boston Bombers, San Bernardino Shooters and ISIS Truck Driver who ran down Pedestrians and Cyclists in New York City were all Legal Immigrants!
ENVIRONMENTAL CONSEQUENCES
FARMLAND & NATURAL HABITAT LOSS
“For every Person added to U.S. (or California's) Population, one Acre of precious Farmland or Natural Habitat is lost to Developed Uses” (e.g., Malls, Urban Sprawl, Tract Housing) (Pimentel et al, Cornell).
SPECIES EXTINCTION
“United States “Top 10 U.S. Endangered Species”, Center for Biological Diversity: As the human population grows we are crowding out, poisoning and eating all other species into extinction. With the world population hitting 7.6 billion, the Center is marking this milestone by releasing a list of species in the United States facing extinction caused by the growing human population. The 10 species represent a range of geography, as well as species diversity—but all are critically threatened by the effects of human population.”
“Pressure Intensifying to Migrate to USA!! BALANCE Has The Solution to Stop Mass Immigration!!!!,” balance.org, 09/15/2018
And a recent study, now consistent with the Trump Administration Legal Immigration Reduction Policy reform, states:
“1.8 Million Immigrants arrived in the USA in 2016 (U.S. Census Bureau) — the Highest Level in U.S. History.
“And between 1.5 and 1.6 Million of these were LEGAL Immigrants. California received over 400,000 LEGAL Immigrants that year and, under current law that flow continues. And there were 702,000 VISA Over-stayers in 2017, and 500,000 Illegal Aliens crossed the Border that year!”
“Help Get REAL Immigration Reduction Bill NOW!”, carryingcapacity.org, 08/21/2018
Note: Both Balance.org and CarryingCapacity.org are Non-Profit Pro-Immigrant, Anti-Mass Immigration Organizations.
7) Market Interventions by The Fed-led Cartel. Various Investment Websites describe the Cartel intervenors in various ways, e.g., “The President’s Working Group on Financial Markets” or “The Plunge Protection Team” or even the “Meanies”.
However described, there is considerable evidence of Cartel Intervention in Recent Years (see Deepcaster’s recently released book, Profiting & Protecting from The Greatest Market Threats, Cartel Interventions, and Fake Economic News, for Details (available on Amazon).
Indeed, there is increasing evidence that Key Central Banks have intensified their buying of Equities (Result: Artificial Equities Markets Propping). For example, it appears the Swiss National Bank has purchased a significant Position in Apple Stock!
But Cartel Interventions are not all-powerful and Neither are Cartel Interventions to Suppress the Prices of Gold and Silver. See Deepcaster’s Forecasts and Buy Recommendations to Profit and Protect from the Interventions and Consequences. See especially Deepcaster’s recent “Bull Sector” and High Yield Portfolio Picks.
8) The Big D Threat The Big D is Massive Unpayable Debt worldwide.
THE BIG D is $US Denominated DEBT. The USA alone is over $21 Trillion in Debt which is now projected to increase at $1.2 Trillion per Year.
And World-wide, Sovereigns, Businesses and Individuals Carry at least $248 Trillion in Debt (or much more according to some estimates). And this number is increasing. Bottom Line: Most of this Debt can never be repaid given any reasonable projections of Economic Growth.
However, given the foregoing, the $US Strength which we have seen recently, with the USDX bouncing up against 95, cannot last more than a very few more months at most.
Until very recently, U.S. Treasuries were treated as the “Go To” Safe Haven, especially since The Cartel has successfully kept Gold and Silver from rising in spite of all the recent Triggers.
However, given the foregoing Realities, Treasuries have begun to reverse The Spike with the 10-Year yield headed for 3.5% or above with the $US weakening as the Unpayable Debt situation becomes more and more obvious and intractable, all as Deepcaster forecast.
Result: Indeed, the $US will be dramatically DEVALUED and The Spike will eventually reverse via Massive Printing from The Federal Reserve and other Central Banks. Result: Hyperinflation (The Big H) or more accurately, Stagflation, because the Inflation will be coupled with a stagnant economy (cf. our earlier Alerts).
To Profit and Protect from all the aforementioned it is important to 1) be aware of the Realities summarized in this Article and 2) see Deepcaster’s recent Forecasts and Buy Recommendations aimed at Profit and Protection.
Best Regards,
Deepcaster
October 5, 2018
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-- Published: Friday, 5 October 2018 | E-Mail | Print | Source: GoldSeek.com