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“Some
people think that the Federal Reserve Banks are United States Government
Institutions. They are private monopolies which prey upon the people of these
United States for the benefit of themselves and their foreign
customers; foreign and domestic speculators and swindlers; and rich and
predatory money lenders.”
The
Honorable Louis McFadden, Chairman of the House Banking and Currency
Committee in the 1930s
In the near-century since 1913, (the year the U.S. Federal Reserve
was established) the World’s Reserve Currency, the U.S. Dollar, has
lost at least 96% of its purchasing power. Among the many casualties of
this Massive Devaluation are Retirees, Investors, and Savers who
“stored”, they thought, the fruits of their labors in U.S. Dollar
(i.e. U.S. Federal Reserve Note) denominated paper “Assets”.
In the near-year since the Equities Markets began their Crash
today’s hopeful wealth-builders, Investors, Savers and present and
prospective Retirees (not often mutually exclusive categories) have seen
their paper “Wealth” – Typically their Equities Portfolios
– savagely reduced by as much as 30% to 40%.
The victims of these Devaluations have at least two things in common:
1. They are mainly the victims of
the Policies and Actions of the private for-profit U.S. Federal Reserve and
2. It is unlikely that these
victims will be able to regain or even preserve remaining wealth until the
private for-profit U.S. Federal Reserve is abolished and its functions are
assumed by the U.S. Treasury.
That
is primarily because The Fed’s policies and practices which got us into
this mess are not only continuing, but accelerating in intensity and scope.
Bob
Chapman recently provided a concise summary of these policies and practices
and their catastrophic effects on our Economy and Markets.
“What
the Illuminati have done for over 20 years now, was to have the Fed, which
they privately own, raise the level of growth in the supply of money and
credit to ludicrous levels, while they simultaneously order their lackeys
at the BLS to lie about the rate of the resulting inflation by using hedonics
(statistical manipulations) that were intended to greatly understate
inflation.
As a
result, when real GDP was calculated, the GDP deflator, which is based
substantially on the official (and falsely low) rate of inflation, and which
is used to calculate real GDP, was obviously far too
low. This farce resulted in higher levels of real GDP than were warranted by
the data, because inflation was not being properly taken into account.
This
is how they covered up the destruction of our economy via free trade,
globalization, off-shoring and outsourcing, along with both legal and illegal
immigration (slave labor). If the true figures were used, our real GDP would
show that the rate of growth in our economy has been virtually flat to
negative since 1990s has been nothing but false puffery, which resulted from
profligate growth in the supply of money and credit, and not from growth in
production. For this reason, when the Dow finally bottoms, we expect it to
track back to its levels during the early 1990’s, which means roughly
2,500 to 3,500. That level will destroy everything, especially the wealth of
our middle class…
The
Illuminati are about to learn a hard lesson: Hell hath no fury like an
American deceitfully parted from his money!!!
…We
may think our republic is democratically free, but it isn’t. It is
controlled by a privately owned Federal Reserve just as England is with the Bank of England.”
(emphasis
added)
International
Forecaster
June 20, 2009
Amplifying one point made in the Chapman excerpt, Deepcaster has
been focusing for several years on the serious distortions of Official
Statistics and the key Role they play in the Fed-led Cartel’s* Profit
Making and Power enhancing Strategy.
Consider certain key Real Numbers calculated by Shadowstats.com the
old-fashioned way - - the way they were calculated before political
“adjustments” began to be made in the 1980s and 1990s.
Shadowstats.com makes a convincing case that Real Consumer Price
Inflation is 6% annualized (June 17, 2009 report), M3 is still at
about 7% (June 12, 2009 report), that Real Unemployment is about 20%
(June 5, 2009 report), and Real U.S. GDP growth is a negative 5% (May
29, 2009 report).
Making matters worse, for years now, a Fed-led Cartel* of Key
Central Bankers and their favored Financial Institutions have been overtly and
covertly intervening in the Precious Metals, Equities, Strategic
Commodities, and other Markets.
______________________________
*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.”
_______________________________
In other words, the Asset bubbles of the last decade, as well as the
Fall, 2008 Market Crash were, to speak euphemistically, facilitated by The
Fed-led Cartel.
And in connection with the Fed-led Cartel’s being a
profit-making enterprise, consider the $13 Trillion! Which the Fed-led
Cartel and favored Financial Institution made, in the 6 months between June,
2008 and December, 2008, when Investors around the World were losing
Trillions in the Equities Market. And this fact is “hiding in plain
view” on the Central Banker’s own Bank (The Bank for
International Settlements) website www.bis.org, path: Statistics
> Derivatives > Table 19. For extensive details on this $13
Trillion “Windfall” read “Opportunities & Threats in
Derivatives Shocker” (05/29/2009 ) in the ‘Articles by
Deepcaster’ cache at www.deepcaster.com.
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 (witness the increasing number of bank
failures) 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 been
pushing another Power Grab - - Authority to examine all substantial financial
institutions. This proposal was recently made by The Obama
administration itself!
As background to understanding The Fed’s ascending to power
and 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 State s” 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 State s. 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 and 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 $592 trillion
as of December, 2008 - - see www.bis.org (path:
statistics>derivatives>Table 19 and ff.) of Dark OTC (i.e. not
Exchange-traded) 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.
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.
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 SDR’s recently issued by the IMF –
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
becoming even stronger competitors to their New Global, and Regional
Currencies, and 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 which includes destruction
of the U.S. Dollar as 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 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, (mainly through excessive monetary and credit inflation) and have
thus far been successful in instituting Regional (e.g. the Euro) and, now,
Globally (e.g. The IMF SDR’s) currencies.
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.
Yet, in spite of all this the Obama Administration wants to increase
The Fed’s power by Making it the “Systemic Risk Regulator”,
specifically the Fed would have the power to examine any firm they
claim threatened financial stability. What a catastrophe the granting of that
new power to The Fed would be.
And the Obama Administration is requesting that The Fed be granted
this authority even though the Fed’s Inspector General recently
testified she has NO knowledge how our money is being spent there, and
No idea what is going on there.
Fortunately, a Majority of members of the U.S. House of Representatives
have endorsed Rep. Ron Paul’s ‘Audit The Fed’ bill (H.R.
1207). Rep. Paul has also introduced an Abolish The Fed Bill (H. R. 2755). If
these Bills pass or come to close to passing it may be possible to stop this
Fed Power Grab.
We encourage you to encourage your Senator and President Obama to
support these bills AND to OPPOSE giving The Fed any increased
Power. Increased power for The Fed entails an increased threat to the
Profits and Wealth Protection Of Investor – Citizen around the world.
A
Solution Which Addresses Current Realities
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 mid-year, 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 Assets 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 a majority of 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 and the
“Main Street” Taxpayer/Investor 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 6/30/06
“Profiting from Cartel Intervention”, in the ‘Articles by
Deepcaster’ Cache at www.deepcaster.com.
Protection and profit require 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.
Best
regards,
Deepcaster LLC
Deepcaster.com
All
the other articles by Deepcaster
Wealth
Preservation - Wealth Enhancement
Financial and
Geopolitical Intelligence
Gravitas, Pietas,
Virtus
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