“Put money in thy purse…”
Othello Act 1, Scene 3
Shakespeare
"The inevitable and rapid deterioration in government finances will almost certainly trigger a new wave of demand for gold. This demand is not yet understood by those market professionals who assume that rising prices will generate sufficient supply from profit takers. This is usually true in other markets, but the buyers of gold today are mostly hoarders, and hoarders tend to buy more on rising prices as their earlier fears appear to be vindicated. So the difficulty for those who want to put a lid on this market is that rising prices will lead to accelerating demand."
“Alasdair Macleod: Inflection point for gold and the price suppression scheme”
GATA via CPowell, 9/21/10
“The Federal Reserve has been a nightmare for the American people. It inflates the money supply, thereby devaluing already-existing money and placing a massive hidden tax on the people via rising prices. It also uses its monopoly power to cause interest rates to go up or down, usurping the rightful place of the market and causing massive malinvestment and generally an improper and unproductive allocation of resources…
The Fed also causes the boom-and-bust cycle through its manipulations of the currency and credit supply. It serves as the government’s partner in perpetually expanding the “welfare-warfare state,” allowing the state to spend far more than it could ever hope to reasonably raise through direct taxation. And of course, the fact that all Federal Reserve notes enter the economy as debt with interest attached (but never created) has led to a situation where it is literally mathematically impossible to pay off the debt. In sum, the consequences of such a system have been disastrous for average Americans — hence the growing calls to audit and even end the Fed…
But now, imagine such a system at the global level. And it isn’t just a mental exercise; the global central bank is already emerging. As bad as the Fed has been for America — and indeed the world — a similar system at the international level would be far worse. Disaster might even be an understatement…
International Liquidity and Inflation
One of the most serious threats posed by a global central bank and world fiat currency is the fact that it would allow the emerging planetary regime to print its own money and finance its activities independently. That means wealth could be secretly siphoned away from all of humanity to pay for armies, tax collectors, courts, bureaucracies, law enforcement, wealth redistribution, propaganda, and much more. With no limits. But to advocates of such a system, that is one of its primary benefits…
Of course, communists have always supported control of “liquidity” (Karl Marx was a strong advocate of central banks with a monopoly on currency and credit). But to people who care about freedom and prosperity, the communists’ support should be a huge red flag…
The United Nations has also backed global currency proposals for the same reason…
In its report published earlier this year, the IMF also recently came out in favor of allowing it to print its own money to provide “international liquidity.” “A global currency, bancor, issued by a global central bank would be designed as a stable store of value that is not tied exclusively to the conditions of any particular economy,”...
Even John Maynard Keynes, the original proponent of the world currency called “bancor,” understood the concept well. In 1919, he wrote in his book The Economic Consequences of the Peace, “By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”...
But what would a global currency really mean aside from the destruction of the dollar and the U.S. economy? “A global central bank would be a disaster,” financial guru Bob Chapman, editor of the International Forecaster, told The New American. “It means the acceptance of world slavery.” Chapman also pointed out that the present international monetary system was being deliberately destroyed precisely to bring about a global currency like the bancor. “It’s just not fiscal and monetary policy. It is every facet of your life that these elitists want to control.” And they’re moving rapidly toward that goal…
In addition to printing money, the emerging global central bank and its affiliates are already usurping other powers traditionally exercised at the national level. In his Newsweek article, Garten calls for the new planetary central bank to be the “lead regulator” of all sorts of financial institutions, monitor risks, push national authorities to “modify their policies,” coordinate national “stimulus programs,” orchestrate a “global-stimulus plan,” force taxpayers around the world to bail out companies, and even act as a bankruptcy court. The IMF, in its own report, called for global “imbalance” taxes, capital controls, and a true world financial regulatory regime. A lot of that is already coming into being, but as the new monetary order develops, the agenda will only accelerate…
And as if all that wasn’t bad enough, there is no accountability for this newly empowered IMF. Jim Rickards, the director of market intelligence for Omnis, explained that, while the IMF has articles of association and some governance rules, the true power structure behind it is the G20, which is “completely unaccountable.”...
Options, Solutions
As the international monetary crisis unfolds with a collapsing dollar, there will need to be some sort of reforms. The question is which ones. Instead of “currency reform” coming “from the marble palaces of the monetary elites,” economist Lew Rockwell of the Mises Institute points out, “private currencies traders the world over could, on their own, give rise to a new currency rooted in gold and traded by means of digital media.” This would be far superior for numerous reasons, he argues. “Under a gold standard, the physical metal is the limit and the market is the master. Under a global paper system, the paper provides no limit whatsoever and the politicians are the masters.”…
“What you’re going to see over the next few years is a global struggle between the forces who want to create new forms of paper and just give it a different name and a different issuer and continue to flood the world with paper liquidity and keep the game going on the one hand, versus people who will recognize that the only true form of money is gold and will start bidding up the price of gold against the dollar,” Rickards predicted…
It is ironic that the likely imminent collapse of the world’s current fiat “reserve currency” is being used as an excuse to implement a global fiat currency. But it is extremely serious. Escaping the elites’ clutches would become almost impossible as wealth is steadily transferred from humanity to the banking oligarchy and its ever-expanding global government. And so the scheme must be prevented.” (emphasis added)
“The Emerging Global Fed”
Alex Newman, thenewamerican.com, 9/16/10
“Meanwhile, the Washington Post ran a 2009 story praising the International Monetary Fund’s transformation into a bank of the world. “Bowing to a new economic world order, the IMF would grant fresh powers to the likes of China, India and Brazil. It would have vastly expanded authority to act as a global banker to governments rich and poor,” wrote Post staff writer Anthony Faiola. “And with more flexibility to effectively print its own money, it would have the ability to inject liquidity into global markets in a way once limited to major central banks.” The article also mentioned “the IMF’s transformation into a veritable United Nations for the global economy” and quoted various experts praising the developments.
Even the supposedly more free-market-friendly press in the United States has also backed the scheme. “World money, with a world central bank, seems a next logical step,” wrote Wall Street Journal editor emeritus Robert Bartley in a 2003 opinion piece for the newspaper. “A world money would be an extraordinary boon to international stability.” He was writing from Mundell’s monetary conference at his castle in Italy.
The world elite is on a mission. Its plan to impose a global fiat monetary regime on humanity is well under way. And if serious resistance is not mounted soon, the new world monetary order could be just around the corner.” (emphasis added)
“Waking up to a World Currency”
Alex Newman, thenewamerican.com, 9/15/10
The issue is thus presented. Do investor-Citizens in Sovereign Nations around the World want the Economic, Political, and Personal Freedom of National Currencies linked to Gold – ‘Gold-Freedom’ we call it—or will they submit to Subservience to Unaccountable Global Mega-Bankers via a “Global Currency”?
Our term “Gold-Freedom” has a dual significance.
It not only means the recently increasing freedom of the Gold (and Silver for that matter) Price to rise without effective Cartel* Price Suppression. (For details regarding the ongoing Cartel Gold and Silver Price Suppression Scheme, see the Articles sited below.)
But perhaps even more important, it means the preservation and enhancement of the Freedom of Investor-Citizens around the world who own Gold, to minimize the Freedom-obliterating Effects of the ongoing Cartel* ‘End Game’, and, indeed, to profit.
When Deepcaster first started writing about the Cartel* ‘End Game’ a few years ago, some were skeptical, a few, outright disparaging.
Not anymore!
Perhaps that is because ‘The End Game’ is already being implemented. A Key Component of that ‘End Game’ has for years been, and still is, The Cartel’s* ongoing Regime for Suppressing Precious Metals Prices.
*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, 2009, Special Alert containing a summary overview of Intervention entitled “Forecasts and December, 2009 Special Alert: Profiting From The Cartel’s Dark Interventions - III” and Deepcaster’s July, 2010 Letter entitled "Profit from a Weakening Cartel; Buy Reco; Forecasts: Gold, Silver, Equities, Crude Oil, U.S. Dollar & U.S. T-Notes & T-Bonds" in the ‘Alerts Cache’ and ‘Latest Letter’ Cache at www.deepcaster.com. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org, including testimony before the CFTC, 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.” Attention to The Interventionals facilitated Deepcaster’s recommending five short positions prior to the Fall, 2008 Market Crash all of which were subsequently liquidated profitably.
The Cartel attempts to suppress Precious Metals Prices because increasingly widespread recognition of Gold and Silver as the Ultimate Stores and measures of Value, tends to delegitimize The Cartel’s Treasury, Securities and Fiat Currencies, thus diminishing their power.
But, simultaneously, Gold and Investors in Gold (and Silver) have been fighting back, fighting ultimately, not only for profit and protection but also for their economic, political and personal freedom, and increasingly effectively.
And while both sides continue to win battles, the outcome of this Very Important War is yet to be determined. But the Battles are quite important.
For example, GATA, Deepcaster and Others have widely publicized reports that certain Cartel-linked Major Gold (and Silver) Repositories and ETF’s may not have the actual Physical Metal they say they do (the physical metal having been sold into the Market to help suppress the price). This has led to a skyrocketing demand for Delivery and Possession of Physical. Gold and Silver, with consequent upward pressure on the Precious Metals Prices.
And recently, Barrick (and also AngloGold Ashanti) has shut down its hedge book.
This means a major Source of Gold-Sold-Forward, typically at a lower, or, recently much lower, than the current or projected spot price, is eliminated.
This removes considerable downward pressure on the Gold price and also weakens The Cartel’s ability to suppress the Gold Price.
Thus the Key Question is: Has The Cartel lost control of Gold and Silver prices? Or, if not, is it about to?
Since we last wrote there has been a remarkable upsurge in (wise) Buyers demanding Delivery of Gold and Silver, and especially Delivery of Silver from the Comex. As of September 14, 2010, for example, there were 1500 contracts, i.e. 7.5 Million Ounces of Silver due to be delivered by the end of September, 2010. But is that much Physical Silver actually available for Delivery? We shall see.
It is no wonder Silver prices have surged to around $21/oz.
Similarly, Gold continues its seemingly relentless march upward, trading around $1,290/oz as we write.
This is primarily because Precious Metals Investors are increasingly demanding Delivery and Possession of Precious Metals, and are no longer satisfied with the Paper Promises of certain ETFs and Ostensible Repositories.
In sum, the Cartel has reached a Climacteric in the Form of a Silver and Gold SHOWDOWN.
Indeed, this SILVER (and Gold) SHOWDOWN is reflecting a serious CRUNCH for the CARTEL. The prices of “Paper/Electronic” Securities and Certificates of Precious Metals Ownership are relatively easy to manipulate. BUT, Prices for the Physical Metal are much tougher to manipulate, especially in light of the Gold-price-positive developments outlined above.
Nonetheless, we expect The Cartel to launch a Takedown Attack on Gold and Silver soon.
The Cartel has not been in so tough a position in many years.
Revelations that Major Repositories may not have the Metal they say, have caused Major Buyers to demand Physical and Delivery thereof.
The Cartel is losing Clout…but it still has some.
So we reiterate also
Fundamentals and Key Technicals all argue that Gold, Silver and the Mining Shares should continue to launch higher, much higher, and soon.
Indeed Gold Bullion should continue to explode upward from here ($1290ish as we write) to at least $1325ish, its next Major Technical Target, before even a pause, and then to move beyond.
And Key Technicals and Fundamentals signal that Silver Bullion and Shares should also explode upward even more vigorously than they have recently.
Indeed, the Only Reason for Gold or Silver to Chop Sideways or Decline in the next few weeks, would be successful Cartel Interventions.
In sum, our view is that although The Cartel has been significantly weakened in recent months, it has not been entirely vanquished.
Consider that if The Cartel had been entirely vanquished Precious Metals Prices would already be much higher than they are now. (The all time high Gold Price adjusted for inflation is about $2,400.)
For Deepcaster’s Forecast in this regard, see his latest Alert in the ‘Alerts Cache’ at www.deepcaster.com.
Whatever the near-term future for Gold and Silver bullion and share prices, the Macro-Battles continue.
One of several Arenas is the battle over the Ultimate World’s Reserve Currency.
Thus U.S. Dollar is still that Reserve currency, but its Role is increasingly under attack.
For example, a few years ago the Globalists launched a (now-failed) attempt to supplant the U.S. Dollar with the Amero.
However, the failed attempt to launch an “Amero” (the Cartel’s desired Currency for a Merged Mexico, the U.S. and Canada) has refocused the Globalist’s emphasis to creating a “Banco” as an outgrowth of the De facto World Currency which already exists – IMF-SDR’s.
Alex Newman (above) details several deleterious effects the adoption of a Global Currency would have on freedom and sovereignty and economic well-being of Investor-Citizens around the world.
But instituting a Global Currency is but one of several aspects of the Cartel End Game. For others see Deepcaster’s 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 a recent session U.S. Congress (H. Con. Res. 40), which opposes this nefarious scheme.
So how can Investors-Citizens Protect and Profit from, and ultimately defeat, this End Game?
We Citizen-Investors now have a unique Opportunity to not only make an investment which will enhance our wealth protection and profit maximization efforts, but also to “vote” with our investments for our own economic, personal, and political freedom.
Our Primary Investment “Vote” should be for the Ultimate Monetary Metals Gold and Silver: Buy Physical any time (but the form of physical matters – see our recent Alerts), and quality Gold and Silver Mining Shares on the Dips.
As to surmounting the ‘End Game’, consider these Guidelines:
Strategy for Identifying Opportunities for Profit and Protection
With Economic Hyperinflation and Equities Markets Deflation looming in our Future, most Equities Market Opportunities will be on the short side through the rest of 2010 and into 2011, as we earlier forecasted.
But further Equities Markets Take-downs should provide Magnificent Buying Opportunities in Key Sectors.
Above all, superb Opportunities will continue to exist in Gold and Silver and we urge Gold and Silver Bullion and Mining Shares Purchases. However, unfortunately, Protection and Profit in the Precious Metals does not reliably lie in Straight-out Precious Metals Purchases or Mining Shares Purchases (i.e. without regard to Timing or Asset Form). Indeed maximizing Profit and Protection via Precious Metals purchases, or indeed in the general Equities Markets, requires a Strategy.
1.Invest in Gold and Silver (and key Strategic Commodities), BUT, according to a Strategy designed to minimize the Effects of periodic Cartel Price Suppressions of Gold and Silver (and key Equities Sectors and Commodities), and, indeed, to Profit. Deepcaster has designed such a Strategy described in the following articles: “Defeating the Cartel... With Profit, Part 2” (6/19/2009) and “Defeating the Cartel... With Profit, Part 1” (3/28/2008) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com. And Deepcaster recently recommended two Precious Metals investments, both of which are resistant to Cartel Price Takedowns.
2.Take Account of overt and covert Cartel* Interventions; that is, take account of The Interventionals as well as the Fundamentals and Technicals.
See Deepcaster's articles: “Profit & Protection from Cartel Intervention” (12/25/2009) and “Gain from the Cartel Game Plan” (9/04/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
IMPORTANT NOTE: As indicated in the referenced Articles, much of the post-March 9, 2009 Equities Rally has been Cartel-generated.
3.Make decisions based on Real Data, such as that provided by shadowstats.com, gata.org and deepcaster.com, not on bogus Official Statistics. See Deepcaster's articles: "Opportunities to Profitably Escape Paper "Wealth" in 2010" (3/12/10) and “Surmounting Deception, Distortion & Intervention” (7/17/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
Shadowstats.com calculates the Real Numbers for the U.S. the way they were calculated in the 1980’s and 1990’s, before systematic Official Data Distortion and Interventions began in earnest.
Official Numbers vs.Real Numbers (per Shadowstats.com)
Annual U.S. Consumer Price Inflation reported September 17, 2010
1.15% / 8.50% (annualized August 2010 Rate)
U.S. Unemployment reported September 3, 2010
9.6% / 22%
U.S. GDP Annual Growth/Decline reported August 27, 2010
2.98% / -1.25%
U.S. M3 reported September 16, 2010 (Month of August, Y.O.Y.)
No Official Report / - 4.29 %
4.Implement an Investment and Personal Protection Strategy designed to cope with, surmount, and profit from The Cartel’s ‘End Game’. See Deepcaster's articles: “Surmounting The Armageddon Scenario & Cartel ‘End Game’” (2/26/2010), “Crunch Time for the Cartel“ (11/25/2009), “Surmounting the Cartels' 'End Game' Juggernaut“ (9/25/2009), and “Coping with Power Moves in the Cartel's 'End Game'” (4/24/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
5.Implement a Strategy Designed to Profitably Escape Paper ‘Wealth’. Deepcaster’s Strategy is described in “Opportunities to Profitably Escape Paper "Wealth" in 2010” (3/12/2010) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
6.Become involved in Political action designed to blunt the Cartel’s Superpower-Threat and derail the Cartel’s ‘End Game’. See Deepcaster's articles: “Surmounting Cartel Advantages” (5/08/2009) and “Coping with the Superpower-Cartel Threat!” (1/30/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com. Work to defeat The Cartel ‘End Game.’ Deepcaster has laid out the evidence regarding the Ominous Cartel “End Game” in “Coping with Power Moves in the Cartel's 'End Game'” (04/24/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com. Clearly (and the recent U.S. Dollar bounce) The Cartel is sacrificing the U.S. Dollar over the long-term to prop up Favored International Financial Institutions and to maintain its power. But this sacrifice cannot continue forever. See Deepcaster’s July 2008 Letter in the ‘Latest Letter’ Archives at www.deepcaster.com.
7.For Americans, become involved in Political Action to Audit the Fed and U.S. Gold Reserves (see below) and stop the Amnesty of 25 to 30 million Aliens now illegally in the U.S. A. When this Amnesty was proposed in 2007, Robert Rector of the Heritage Foundation calculated it would cost $100 billion annually (net of Taxes paid by the Illegals) for Health Care, Education, Infrastructure, and Support Services. A recent estimate puts this cost closer to $300 billion. The cost now would be even higher due to increased Alien population growth and entitlements in the new Health Care Bill. Carrying Capacity Network (www.carryingcapacity.org) is a nonprofit organization which actively supports Auditing the Fed and opposes the Illegal Alien Amnesty. With 125,000 work visas being issued to Legal Immigrants each month American Taxpayers should not have to suffer the additional burden of supporting Illegals.
Hard Assets Partisans have the opportunity to become involved in Political Action to diminish the power of The Fed-Cartel. It is truly outrageous that the average unsuspecting citizen, and prospective retiree, can and does put his hard won assets in Tangible Assets and/or Retirement Accounts only to have those assets effectively de-valued by Cartel Takedowns, U.S. Dollar Devaluation and other Cartel actions. 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.
8.Develop an Investment and Trading Strategy designed to address all of the above. See Deepcaster's articles: “Avoiding Wealth Confiscation... With Profit!” (2/05/2010), “Profiting in "the whipsaw year" 2010” (1/08/2010), “Middle Class Outrage, Solutions, & The Markets” (12/11/2009), and “Protect and Profit Before the Coming Storm” (11/13/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
9.Make Select High Yield Equities Investments whose probable Appreciation plus Yield Exceeds Current CPI, now at 8.5% per shadowstats.com. Deepcaster’s New High-Yield Portfolio contains 5 Recommendations with Recent Yields of 18.5%, 10.6%, 26%, 8%, and 15.6% when we recommended them.
10.Work for Local, National and International Solutions, NOT Global ones.
In sum, 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 obtaining Superpower status, and aid in achieving wealth protection and profits as well.
