Investors: Demand Beef; Reject Cake
Stock-Markets / Financial Markets 2011 Dec 10, 2011 - 05:18 AM GMTBy: DeepCaster_LLC
”Let them eat cake.”
Attributed to Queen Marie Antoinette, shortly before being guillotined during the French Revolution.
”Where’s the beef?”
Fmr V.P. Walter Mondale to Sen. Gary Hart (1984)
“This is a great leap sideways.
Daniel Gros (director of the Centre for European Policy Studies think tank), speaking of the Dec. 9, 2011 “New” Draft ‘Treaty’ for deeper EU economic integration.
It is no surpris8e that Equities Market Volumes in Key Sectors have approached record lows recently.
Investors are fed up both with Hot Air-No Action Politicians, and with Mega Bankers who are more interested in protecting themselves than the Sovereign Nations’ Citizens from which they profit.
And the Profits which the Mega-Bankers Protect are stunning. Just ask why (and how) it is that European Banks have access to very low interest (nearly 0% to 2%) loans from the ECB, but that Sovereign Nations (i.e. Taxpayers) must borrow from the Banks at Market Rates?! For example, yields on 10 yr. Italian Bonds rose back above 6.5% after today’s (Nov. 9) EU Agreement. We expect Italian taxpayers will be less than delighted.
Thus, we offer a few suggestions about how Investors can surmount the Spin and Disinformation and Structural Disadvantages to Protect Wealth and even Profit.
- 1. Separate the Beef from the Cake – Since the Eurozone “Fix” has turned out to merely be another “Liquidity Facilitation” as e.g. The Eurozone agreed to provide the IMF with up to 200 billion Euros in bilateral loans, and/or IMF eventually agrees to Monetize more debt, those are No Solution. The Problem is, ultimately, Solvency not liquidity and will not be “Solved” until there are dramatic Bank Haircuts/Debt Reduction/Debt Repudiation/Debt Defaults. And that is not happening, to any great extent, yet.
For Investors an attractive strategy would be to seriously consider shorting the Euro.
- 2. Legendary Billionaire Investor Honest Jim Rogers identifies The Larger Major Problem. The Fed (and other Central Banks) continue to devalue the U.S. Dollar (and other Fiat Currencies) by printing more money, and facilitating piling more Debt on top of already unsustainable debt. This only exacerbates economic problems in the long run, by creating more inflation and unsustainable debt burdens. Demanding Investors respond by investing in Gold, Silver, and other Tangible Assets in relatively inelastic demand.
“No matter what you've heard to the contrary, "there is QE3, the Fed is pumping money into the system," says legendary investor Jim Rogers, disregarding most every Federal Reserve statement over the last six months. In the attached video Rogers explains his lack of trust (read: contempt) for the Federal Reserve and Fed Chairman Ben Bernanke.
"They're lying to us," he says of the Fed. "One reason the markets are holding up so well is that they are printing money as fast as they can."
"What the Federal Reserve is doing now is ruining an entire class of investors," says Rogers. By forcing rates down and keeping the economy on a flatline, he believes the Fed could cause another lost generation of investments. Suffice it to say, vaporizing those who faithfully accumulated savings over the years is no way to restore confidence in our financial markets.
Rogers isn't simply a disgruntled American patriot, he's an investor with a legendary record of success.”
Fed Is “Ruining an Entire Class of Investors” Says Jim Rogers
Jeff Macke, Yahoo! Finance, 12/6/11
Unfortunately for Savers (and most Long-Term Fixed Income Investors), the Purchasing Power of their Savings and Cash is Diminishing Rapidly (e.g. Real Inflation of 11.4%/yr. in the U.S. Now according to Shadowstats.com – See Note 1 below). Thus, we reiterate, ‘Buy and Hold’ rarely works anymore.
- An Important Counter-Strategy for Investors is to select High Yield Investments whose Total Return (Gain plus Yield) is likely to exceed that Real Inflation number (which is the Aim of Deepcaster’s High Yield Portfolio – See Note 2 below).
And then there is the Challenge of not getting trapped by the Latest Fads.
One risks losing Privacy, losing Wealth, and, eventually losing one’s Freedom.
Legendary Investor and Newsletter Writer Uncle Harry Schultz puts it well:
“—I’ve done R&D on the Net via an expert supremo. They (the elite) plan to take it down, or split it into them-&-us. I’ll spare U the grim details. But it’s vital 4 U 2 know the Net records every word U say on it. If U use Facebook U R foolish beyond repair. Faxing is marginally safer/private. Forget phones & iPads, etc. Snail mail is the only privacy U own. Use it! Practice weaning yourself off the Net now, before the chop. Remember, dear reader, we got along before without the Net. We can do so again. Also, for all the convenience of the Net, it steals a large % of our lives on optional stuff. Get your life & your privacy back via the post box. What’s the hurry? What did U do with the time U saved on the net? U watched more web sites & emails? Don’t fool yourself. And don’t reveal yourself. “Hunker down” includes privacy!—”
Harry Schultz, ‘The Big Picture’ in The Aden Report, 12/7/11
And, we might add, Be wary of Ostensible “Cloud Computing Solutions.” Committing ones Vital personal and/or Business Data and Secrets to Storage/Processing on some Remote Server, i.e. “The Cloud,” beyond ones ultimate Control is Problematic at best, Highly Risky at Worst.
- 5. As well, Thinking that The Financial System we now have is one we have to live with forever, is simply a fallacy. From the USA’s founding until 1913 when The Fed was established, the USA got along generally quite well, and could surely do so again without The Fed, since all the necessary functions could be constitutionally performed by the U.S. Treasury, and Taxpayers would not have to pay “interest” on Money the Fed creates virtually for free out of thin air
”Do we need central banks at all? It’s a good question. We have had the Federal Reserve since 1913 and their management has been a disaster for Americans and a wealth builder for its owners, the Wall Street banks. It has also allowed the financial sector to control our country. It is the seat of elitist power. The Fed has debauched the US dollar via their monopoly and enriched their owners beyond belief. Any entity that has to resort to the subterfuge of using a cloaking term, such as quantitative easing has to be a scam
The Federal Reserve and other central banks were created to inflate currencies thereby depreciating them and in that process the owners of the Fed and their colleagues’ reaped enormous profits. Entities like the Fed have been doing this for centuries. You might say such a monopoly leads to currency debauchery. Reflecting on such a track record there is no reason to have central banks. A federal Treasury is all that is needed. Not that it is perfect, it is no worse then having a privately owned central bank. We have suffered under the Fed since 1913 and it is time to terminate the Fed and return our monetary authority to the US Treasury.”
International Forecaster: December 2011 (#1)
Bob Chapman, The International Forecaster via GoldSeek.com, 12/5/11
President John F. Kennedy recognized this and authorized the printing of U.S. Notes to compete with Federal Reserve Notes shortly before he was killed.
- 6. Also, be Wary of Claims that if such and such Bank/s are not Bailed Out, or their Debt Backstopped by Taxpayers, that the “Whole Financial System will Fail”.
Hogwash! The Reality is that certain Mega Banks would fail and not the entire Financial System, and, that after a painful but Brief Transition Period, the Real Economy would be better off than before
“EU authorities want more ‘unity,’ which really means less sovereignty for EC member nations. Germany, the most powerful EU member is in the way of the power the EU authorities desire to wield. Thus, the Germans bond auction failure was an orchestrated event to punish Germany & to warn the German govt not to obstruct ‘unity.’ Germany has been pushed into a European Union that intends to destroy the political sovereignty of member govts, just as Abe Lincoln destroyed the sovereignty of the individual US states. Who will rule the New Europe? Obviously, the private European banks & Goldman Sachs. The new Euro Central Bank president is Mario Draghi. He was Vice Chairman & Managing Director of Goldman Sachs International. Obviously, Draghi is going to protect the power of bankers.
“Italy's new prime minister, appointed not elected, was a member of Goldman Sachs Board of Int’l Advisers. Mario Monti was appointed to the Euro Commission. Monti is European Chairman of the Trilateral Commission, a US organization that advances US hegemony over the world. Monti is a member of the Bilderberg group & a founding member of the Spinelli group, an organization created in Sept 2010 to facilitate integration within the EU. As in Italy, an unelected banker was installed as prime minister of Greece. Obviously, they’re intended to produce bankers' solution to the sovereign debt crisis. Greece's new appointed prime minister, Lucas Papademos, was Governor of the Bank of Greece from 2002-2010. He was VP of the European Central Bank. He also is a member of America's Trilateral Commission. The European Union, like everything else, is another scheme to concentrate wealth in a few hands at the expense of European citizens, who are destined, like Americans, to be the serfs of the 21st century.” (emphasis added)
Paul Craig Roberts, Fm. Asst. Secretary of Treasury under Pres. Regan
The best option for protection and Profits is expressed by Marc Faber: “Become your own Central Banker; buy Gold,” to which we add Demand Beef, Reject Cake; Get Gain.
- 7. Finally, Let your representatives know that you are Fed Up with Market Rigging and especially with Cartel (See Note 3 below) price suppression of Gold and Silver.
“And it is the biggest story that'll ever be broken in the history of American financial journalism -- the U.S. markets are rigged, with the elite and connected getting a distinct unfair advantage over the rest of us schlumps.
Enter Bloomberg Markets magazine last week with a story headlined, "How Paulson Gave Hedge Funds Advance Word."
It addresses the morning of July 21, 2008…
Bloomberg says Paulson met with reporters and editors of The New York Times that morning and told them he expected an audit of Fannie's and Freddie's books to give the financial markets confidence.
But he told a different story when he met that same day with hedge-fund managers at the office of Eton Park Capital Management.
"Around the conference table were a dozen or so hedge-fund managers and other Wall Street executives -- at least five of them alumni of Goldman Sachs Group Inc.,"…
Quoting a fund manager at that Eton Park meeting, "After a perfunctory discussion of the market turmoil ... the secretary [Paulson] went on to describe a possible scenario for placing Fannie and Freddie into 'conservatorship'…
Paulson explained further how the publicly traded stock of both companies would be wiped out under the move.
Bloomberg Markets said the fund manager in attendance who gave the magazine this information "was shocked that Paulson would furnish such specific information -- to his mind, leaving little doubt that the Treasury Department would carry out the plan."…
By giving confidential information to a roomful of traders, Paulson had to understand he'd influence the price of Fannie and Freddie stock and, by extension, the whole market.
He'd also be giving the people receiving that information a chance to cheat -- to rob public investors who weren't lucky enough to be invited to such meetings.
And that brings me to last week.
According to other journalists' reports, the Federal Reserve voted on Monday, Nov. 28, to approve a financial bailout for Europe using our dollars. That's the same day that the stock market staged a strong rally…
Was it just a coincidence that the stock market rallied nicely on the day of the Fed vote?...
But this much I do know: Whatever games are being played between Washington and Wall Street must stop, or the American capital markets will cease functioning. Nobody with any sense will participate in a market that's controlled by greedy people looking out only for themselves…
Bravo to Bloomberg Markets magazine.”
“Bloomberg News confirms that stock market was rigged”
John Crudele, New York Post, 12/8/11
Amen! And Kudos to Bloomberg News and John Crudele.
Best regards,
By DEEPCASTER LLC
www.deepcaster.com
DEEPCASTER FORTRESS ASSETS LETTER
DEEPCASTER HIGH POTENTIAL SPECULATOR
Wealth Preservation Wealth Enhancement
© 2011 Copyright DeepCaster LLC - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
DEEPCASTER LLC Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
