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The Gold Report
newsletter today interviewed Sprott Asset Management's chief investment
strategist, John Embry…
"If you look at
the short positions that the commercials, that is the bullion banks -- which
are the agents of the U.S. government -- are running, it's a complete
fraud," Embry says. "Because they couldn't possibly deliver on
their paper promises if they were called by the people on the other side of
the trade. The gold isn't there to deliver."
That is, the world's
gold is, to put it politely, grossly oversubscribed…
GATA,
"The paper gold marketer is afraid to look in the vault”
June
13, 2009
We Precious Metals, Honest
Money, and Honest Government Partisans have made significant Progress toward
defeating The Cartel since Deepcaster published “Defeating The
Cartel…with Profit” – I, just over two years ago. (See
“Defeating the Cartel... With Profit”, 03/28/2008 in the
‘Articles by Deepcaster’ cache at www.deepcaster.com) But we still have a
considerable way to go.
While the Guidelines for Profit
and Protection offered in that article are still as Good as Gold today, as we
have progressed in the last two years we have learned, (and occasionally
reemphasized) more about defeating The Cartel and Profiting while doing it.
Thus we offer the following
new, (and a few reemphasized) Guidelines and Observations useful for
Defeating The Cartel with Profit.
[For those readers newly introduced
to topic, there is clear and convincing evidence that a Fed-led Cartel* of
key Central Bankers and Favored Financial Institutions regularly overtly and
covertly manipulate Precious Metals, Equities and Strategic Commodities
prices much to the detriment of Investors/Citizens around the world.]
__________________________
*We encourage those
who doubt the scope and power of Intervention 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 Overt and Covert
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” 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.”
__________________________
1.
The
Cartel is still Potent but not omnipotent.
Those Precious Metals
Partisans (including Deepcaster) who would like to see The Cartel defeated
should not allow Desire to obscure Reality.
Although, thanks to
GATA, Rep. Ron Paul and many others, The Cartel is under increasing pressure,
it is also by no means defeated. That is, it is not likely to be defeated any
week soon, though the large open interest already in the August, 2009 Gold
Contract could indicate an interesting Summer if a significant number of
these folks decide to take delivery and personal possession of Physical Gold.
Consider that,
although the Fundamentals for Gold have rarely been more Bullish, it is still
below its all-time high and still suffers from periodic Cartel Takedowns. [The
Cartel’s Motivation for these Takedowns is clear. To maintain its power
and profit The Cartel must prevent increasing legitimacy for Gold and Silver
as The Ultimate Stores and Measures of Value lest their Fiat Currencies and
Treasury Securities be further delegitimized.]
We thus ask those who
argue that The Cartel has “lost control” of the Gold price, the
following question: if The Cartel had “lost control” given
Gold’s ragingly bullish fundamentals, would not Gold have already
attained, and even surpassed, its all time inflation–adjusted high,
which would be about $2,300/oz?
Indeed, recent
evidence strongly indicates that The Cartel is using U.S. Taxpayer –
provided TARP funds to sell paper Gold to suppress its price! Outrageous!
Nonetheless,
employing the Strategy set forth in “Defeating The Cartel with Profit
– I (03/28/2008 in the ‘Articles by Deepcaster’ cache at www.deepcaster.com) makes it possible
to achieve considerable insulation from Cartel Takedowns of the Precious
Metals, plus Profit and an increasing core position of Gold and Silver, along
the way.
That said, The Cartel
is under increasing pressure. While their market rigging operation is still
potent, the politicians are starting to increase the heat in response to
justifiable public Outrage over the Mega-Bank Bailouts. Thus…
2.
The Justifiable
Outrage at multi-hundred billion dollar Bailouts of the Mega-Banks (certain of which
are members of The Cartel’s Inner Circle) has Generated Political Action.
A Majority of the U.S. House of Representatives has already signed on to Ron
Paul’s (excellent, if one may say so) ‘Audit The Fed’ bill
(H.R. 1207) and a companion bill (S. 604) has been introduced in the Senate,
where it will have tougher going. Of course, the sell-outs have introduced
watered down versions to take the heat off. Rep. Paul has also commendably
introduced an “Abolish The Fed’ bill, which is gaining increasing
support.
And a House Committee
has finally had the guts to issue a Subpoena to The private for-profit Fed to
produce documents and emails relating to the AIG matter. AIG was used as a
funnel to channel billions of U.S. Taxpayer provided Funds to the Mega-Banks
(e.g. $11.9 billion to Goldman Sachs) (See “Opportunities & Threats
in Derivatives Shocker”, 5/29/09 in the ‘Articles by Deepcaster’
cache at www.deepcaster.com), some of whom are
likely shareholders of the private for-profit Fed.
In light of all the
foregoing, The Obama Administration’s Plan to make The private
for-profit Fed The Systemic Risk Regulator would have disastrous consequences
for Investor/Citizens around the world! See Deepcaster’s “The Fox
Wants More Of Our Chickens” (04/04/2008) and “Coping with the
Superpower-Cartel Threat!” (01/30/2009) in the ‘Articles by
Deepcaster’ cache at www.deepcaster.com.
An Honest Audit of
the private for-profit Fed would likely result in its demise, and thus
mortally wound The Cartel – All those who are outraged should contact
your Senators and Representatives. Enough said.
3.
In the
meantime, The Cartel continues its Takedown Actions (using select
Primary Dealers as vehicles) as the $21.30 Friday, June 12 Takedown of August
Gold to close at $940.70 manifests.
4.
The
Cartel likes to run “Under the Radar” since a wider knowledge of its
Market Rigging operation is not in its interest.
One of its main
techniques is to Use and/or Create Technical Patterns to get Investors and
Traders Offsides.
As we write (June 19)
Gold has created a beautiful Reverse Head and Shoulders pattern with an
upside target of about $1,300/oz. It will be most interesting to see whether,
on its next up move, Gold will hit $1,300, or whether, as in times past, The
Cartel will use that TA pattern to lure in Precious Metals longs, only to
savage them with a Takedown. Deepcaster has issued a Forecast for Gold and
Silver Price Movements available in the ‘Alerts Cache’ at
www.deepcaster.com.
5.
Perhaps
to inflict maximum financial pain, The Cartel has a habit of making Major
Moves around Option Expiration time. Thus heightened awareness and
caution is the watchword as these Expirys approach.
6.
One must
also consider the increasingly important and Controversial issue of whether
Major Gold and Silver Exchange Traded Funds (ETFs) actually have the Gold and
Silver they say they do. It has been alleged that certain ones do not,
and that, therefore these “have nots” are mainly vehicles used by
The Cartel to further its Manipulation Regime.
For example, if these
certain ETFs have not the Precious Metals they say they do, they thus
de facto siphon off money from Investors who think they are buying Real
Physical Gold and Silver.
We do not claim any
particular knowledge of these ETF’s or whether they actually have, or
do not have, physical possession of all the Metal they claim.
Rather, we simply
suggest that Investors consider whether these ETF’s have a rigorous and
reliable mechanism for auditing their supposed holdings and fully
disclosing their findings to the public, or, at least, to Investors who
invest in them. Insist on seeing their most recent audit results before
investing.
In this regard, the
GLD and SLV ETFs and the Perth Mint bear examining very closely.
7.
Monitoring
“Communications Policies”, to use Chairman Bernanke's term, seems
to us more important than ever.
Why oh why do the
Major Media outlets black out the increasingly convincing findings of GATA,
for example, unless they are complicit in a cover-up of The Cartel’s
Market Rigging Operation?
8.
And why
do Official Sources continue to issue Bogus Statistics when the Real ones are
easily available. Shadowstats.com makes a convincing case that Consumer Price
Inflation is still a 7% annualized (May 15, 2009 report), M3 is still
at about 7% (June 12, 2009 report), that Real Unemployment is about 20%
(June 5, 2009 report), and U.S. GDP is a negative 5% (May 29, 2009 report).
9.
Follow
the Money. The Profit Potential (or Reality?) of Market Manipulation is Truly
Staggering. Deepcaster recently noted, for example, that, according to the
Central Bankers’ Bank itself – the Bank for International
Settlements – unnamed Major Financial Institutions increased the
Market Value of their OTC Derivatives by $13 Trillion (yes Trillion) in the
six months from June to December, 2008, when Trillions were being lost in the
Fall, 2008 Crash of the Equities Markets (See “Opportunities &
Threats in Derivatives Shocker” 05/29/2009 in the ‘Articles by
Deepcaster’ cache at www.deepcaster.com).
10. Deepcaster’s
Strategy, laid out in “Defeating the Cartel... With Profit”
03/28/2008 has shown potential to protect against Cartel Takedowns
(specifically, for Gold and Silver) and in so doing enabling profit, whether
Gold and Silver are rising or falling.
11. The
Interventional Regime is as active and broad-based as ever, as is most
recently summarized in Deepcaster’s December, 2008 Letter available in
the “Latest Letter” cache at www.deepcaster.com.
12. If, at the
Interim bottom of Cartel Takedowns, Investors wish to increase their position
of Gold and Silver, they should by all means do it by buying the Physical
Metal – either coins or bullion – and taking personal
possession of it!
Here is a nice phrase
for fraud: The world's gold may be "grossly oversubscribed."
Does anyone recall
the 1970s Black Watch Farms Angus scandal? Lots of investors
thought they owned a cow critter. Came as a shock when more than 100%
of each animal was owned by several people. That is
"oversubscribed."
A
Deepcaster Reader
June
14, 2009
Best regards,
Deepcaster LLC
Deepcaster.com
All
the other articles by Deepcaster
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