?The challenge for Ben Bernanke and the Fed
governors since the 2008 bailouts has been how to deal with the backlog of
fraud ? not just fraudulent mortgages and fraudulent mortgage
securities but the derivatives piled on top and the politics of who owns
them, such as sovereign nations with nuclear arsenals, and how they feel
about taking massive losses on AAA paper purchased in good faith.
?
On one hand, you could let them all default. The
problem is the criminal liabilities would drive the global and national
leadership into factionalism that could turn violent, not to mention what
such defaults would do to liquidity in the financial system. Then there is
the fact that a great deal of the fraudulent paper has been purchased by
pension funds. So the mark down would hit the retirement savings of the
people who have now also lost their homes or equity in their homes. The
politics of this in an election year are terrifying for the Administration to
contemplate.
?
So, it looks like the Fed decision last week to buy
$40 billion a month in mortgage paper is the ultimate plan to clear the
market once and for all of fraudulent mortgages, mortgage backed securities,
and related derivatives. This means Fannie and Freddie will be bailed out and
winding down through the back door. This means the big banks may be paid in
full for your mortgage. It also means your pension fund assets will not be
marked to market ? at the price of debasing the purchasing power of
your assets and benefits.
?
The Fed is now where mortgages go to die. ?As
this happens, trillions of dollars that have been amassed offshore will be
free to come back into the US to buy up and reposition land, farmland,
residential, and commercial real estate and other tangibles. With documents
shredded, criminal liabilities extinguished, and financial institutions made
whole, funds can return without fear of seizure.
?
QE3 proves beyond any shadow of a doubt that the
extent of the fraud was as bad as I said it was. You can count up the
bailouts. The QE1, QE2, QE3 the numbers speak for
themselves. The fraud was indeed in the many trillions of dollars. It was
intentional. It was a plan.?
?
?QE3 ? Pay Attention If You Are in the
Real Estate Market?
Catherine Austin Fitts, solari.com, 9/17/2012
?
Critical recent Developments reveal likely future ones important to
Investors; that is, they shed a Light on the Future. The recently announced
U.S. Attorneys civil suit against Countrywide/Bank of America alleging Fraud
lends credibility to Ms. Fitts claims which were
written before the suit was announced. And the Civil Suits against the
Mega-Banks for rigging LIBOR lend credibility to her claims as well.
?
But what is important to note also is the inconsistency, once again,
between The Fed?s public justification for QE3 ? to help the
Economy and Reduce Unemployment ? and The Reality.
?
If The Fed?s Disinformation were not about so serious a matter,
it would be almost as laughable as Mario Draghi?s
comment that the Central Banks? QE was not inflationary, because, he claims, the threat to the Economy is Deflation not
Inflation. In fact the repeated QE?s have done next to nothing for the
Real Economy, and increasingly have provided decreasing boosts for Wall
Street Financial Assets. But, they are already increasing Real inflation
which is already 9.64% in the U.S. for example. (Note 3)
?
That is, ?the debasing of the purchasing power of your assets
and benefits? will be the Reality going forward. As to where the QE and
related Central Bank actions are leading, billionaire investor Frank Giustra, has given us an excellent summary as related by
Matt Badiali.
?
?Giustra is a giant
in the resource world. A noted philanthropist, he is the founder of a major
Canadian venture capital provider for mining stocks, Yorkton Securities...
gold producer Goldcorp... gold and precious metals producer Wheaton River...
and independent film producer Lionsgate Studios.
?
In his talk, Giustra said
that with QE3, the Fed "crossed the Rubicon." In other words, there
is no turning back from this money-printing strategy. He believes it's the
end of the U.S. dollar, and that it marks the start of one of the largest
transfers of wealth in history.
?
In his view, the Fed is now boxed in on three
sides... by excess liquidity, artificially low borrowing rates for the
federal government, and its own balance sheet.
?
All the money printing will add too many dollars
into the system. And the only way to rid the world of that excess liquidity
is to raise interest rates, which will kill any economic rally.
?
The federal government allows itself to borrow money
at rates far lower than anyone would actually lend money to them. That means
if the rates are allowed to float normally, they will soar. And if the
government has to pay interest at those high rates, it won't be able to pay
off its debt.
?
The Federal Reserve's own balance sheet is leveraged
51-to-1 with long-dated, illiquid securities. In other words, for every $1 it
holds, it has borrowed $51. That debt won't trade at face value, so it can't
be easily sold. And it's sensitive to rising interest rates. If rates rise,
that debt becomes much less valuable... and the Federal Reserve could be
insolvent.
?
According to Giustra, the
government will not be able to pay off its debt. It's only choice is to keep
printing money... And that, he says, will lead to a Hyperinflation event.
?
Giustra says the only reason we
aren't seeing inflation now is due to the "speed of money."
According to Giustra, money is not moving right
now. No one is lending, no one is investing... so the speed of money is
incredibly slow. And that's why we haven't seen a massive inflation yet.
?
His guidance for investors is to stay away from the
dollar... and buy commodities. In his interview at the conference, Giustra cited a study of the 1970s inflation that showed
the four best-performing asset classes from that period...
?
1) Oil
?
2) Gold
?
3) Farmland
?
4) Rare Art
?
When pressed about his own investments, he said his
No. 1 is gold. It's his largest position and will remain so until this cycle
ends.? (emphasis added)
?
Matt Badiali, S&A Junior Resource Trader, 10/22/2012
?
Giusta is mainly correct, and especially regarding the
probability of a ?Hyperinflation Event,? a point which we have
been making for many months now. Giusta?s
inference ?stay away from the dollar? is also correct. And we
also agree that the best performing asset classes going forward are likely to
be the precious metals and agriculture. (Regarding our specific
Recommendations see Notes 1 and 2.) But we doubt Rare Art will perform as
well as in past Inflations.
?
Indeed, bad news for holders of U.S. Dollar Denominated Assets is that
Major Economic Players are already moving away from the $US as
World?s Reserve Currency. China, for example, has made deals with
several other countries that transactions will be made in renminbi.
?
And some countries are already rejecting the $US entirely for certain
transactions. Both DBS Bank in Economic Powerhouse Singapore and Nordea Bank in Sweden, for example, both recently refused
to comply with the Swaps Registration provisions of the USA?s Foreign
Account Tax Compliance Act.
?
These developments hasten the move away from the $US as the
World?s Reserve Currency. Investors take note.
?
As well, going forward Investors will have to continue to contend with
Bogus Official Statistics (see the Real Numbers for the U.S. below in Note 3
per shadowstats.com) and with Cartel Precious Metals Price Suppression
Attempts (see Note 4).
?
So in addition to Hyperinflation and a dramatic reduction in the
Purchasing Power of the U.S. Dollar and Bogus Official Statistics and
Precious Metals Price Suppression attempts, Investors have one more Reality
to Face.
?
Major Sovereign nations not only cannot pay their debt (likely
including the U.S., U.K. and France), but some likely cannot even play
interest on that debt, under any reasonable assumption about economic growth
or lack thereof.
?
Money Printing is only a flawed ?Solution? because it is
leading to Hyperinflation. The other is partial or total Debt Repudiation,
following the example of Iceland.
?
Consider:
?
?While regional independence is superior to
both the failing European Union and the fa?ade of special interest
controlled democracy, one further action should taken
by any jurisdictions that choose secession: Newly restored sovereign nations
should repudiate their share of the illegitimate sovereign debt when they
exit existing unions and nation-states. Created by distant banking elites
buying national politicians and parliaments to load up on sovereign debts
that can never be paid off, this massive national debt load is illegitimate
and destructive to existing and new national economies.
?
The first nations to repudiate sovereign debt will
have the advantage; this is why restored nations should repudiate these debts
and not burden their new national economy and citizens with this junk debt.
In addition, these nations should repudiate their existing politicians and
representatives, controlled by the financial elites who supported the debt
accumulation; because once independence is restored there is nothing to stop
politicians on the take from doing the same thing again.
?
Although the establishment press issues many
negative news accounts about secession fever sweeping Europe, I believe this
is actually a positive political development and possibly the only solution
to the sovereign debt crisis. For instance:
?
The Return of the Venetian Republic?
?
Catalonia Secession From Spain
?
Bavaria Interested in Secession
?
Europe's Richer Regions Want Out
?
Secessionist Wave Sweeps Belgium
?
Flanders Wants Out of Belgium
?
Scotland Seals Terms of Historic Independence Vote
?
Some Want Out of the USA
?
Vermont Independence
?
It is time for the restoration of formerly
independent countries, each with their own unique cultural and ethnic
heritage, that were forced at gunpoint into larger empire states. My
recommendation is to leave most of the illegitimate sovereign debt behind
when they go.
?
Venice wants out of Italy, Catalonia out of Spain,
Bavaria out of Germany, Scotland and Wales want to leave the United Kingdom,
the Flemish want out of Belgium. Even Vermont and some in the South want to
regain their former status as sovereign republics separate from the most
debt-ridden empire in world history, the United States.
?
Just as important, Greece, Italy, Ireland, Spain and
Portugal ? and there are even demands in Germany itself ? want to
leave the EU and euro witches' brew created by their leaders. After all, the
EU is a failure and these member nations may have to leave the European Union
and restore their national currencies in order to grow their economies once again.
?
The Necessity of Sovereign Debt Repudiation
?
Once austerity measures and tax increases have
bankrupted most of the private sector and the current sovereign debt crisis
reaches critical mass, then every nation will repudiate most of its debts as
well as renege on promised health and social benefits. Newly sovereign
nations can act now to position themselves with a distinct advantage when
this occurs. These nations will have been able to limit austerity measures,
reduce confiscatory tax increases and safeguard their citizens' private
wealth by repudiating sovereign debt. If these steps are taken immediately
upon independence, they should be able to avoid the majority of economic
collapse caused by the coming Western sovereign debt repudiation.
?
Most of the countries in the West will eventually
default on their sovereign debts using a war or financial crisis as the
excuse. Like the Reichstag fire under Hitler, the excuse can be either a
manufactured black-flag event or a policy readied in advance and implemented
when the right excuse comes along.?
?
?Secession Fever Sweeping Europe?
?
Ron Holland, thedailybell.com, 10/24/2012
?
So one Main Battle going forward will be over who takes the Hit
? the Mega-Banks or the Taxpayer. So far, Taxpayers have been the
losers, but the public anger is building and that may change. The Icelandic Model may eventually predominate.
?
Finally, regarding Investors Deployment of the Assets, consider the
recent Action of the German Government.
?
A German federal court has said that country's central bank should
conduct annual audits and physically inspect its gold reserves worldwide,
including gold in the custody of the Federal Reserve Bank of New York. In
addition to the FRBNY, Bundesbank gold is stored in
London, Paris and Frankfurt.
?
For decades, the Bundesbank has relied on
written confirmation of its gold holdings in London, Paris and New York.
According to the report from the German audit court, the last time Bundesbank officials physically inspected the central
banks gold holdings was, well, never.
?
?The Germans
Are Coming for Their Gold?
?
Published: Wednesday, 24 Oct 2012 | 5:10 PM ET
?
John Carney, Senior Editor, CNBC.com
?
Best regards,
?
?Deepcaster
?
October 27, 2012
?
Note 1: 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.
?
Note 2: The $US dropped nearly
200 basis points at one point in the last three weeks. No surprise since the
Fed?s U.S. Dollar-Destructive Q.E. to Infinity Action, coupled with the
ECB?s Similar Action the week before, boosted the Euro vis-?-vis
the Dollar, as we earlier Forecast. The very recent $US bounce does not change
its weakening Trend.
?
This Debauchery of the $US weakens its Purchasing
Power and thus increases Burdens on the agonized disappearing Middle Class.
?
The Bernanke claim that buying $40 billion per month
in Mortgage Backed Securities would Stimulate the Economy and help the
Housing Market is just a Fictitious Cover Story. In fact, it is just another
Gift to the Mega-Banks who hold Underwater Paper, and to Wall Street which
proceeded to rally on The Fed-sugared High.
?
Both the Continuous Commodities Index which show Average Annual Price Inflation of 15% and the Real
Inflation Number (9.64% per year from shadowstats.com) reveal Serious
Inflation is with us and it Intensifying.
?
And Especially Food Price Inflation.
?
To increase Yields, Farmers increasingly employ
Fertilizer.
?
And a recent Reco ?
a Fertilizer Producer ? was trading near its 52 week low at under
40? per share when we first recommended it. It has moved up nicely since
we recommended you buy in. But it has such great potential that we raise our
original ?buy under? price to 45? per share.
?
To see our recent Buy Reco
aimed at Profiting from the Fed?s Inflation Rocket, read Deepcaster?s recent Alert, ?Buy Reco (under 40?/share) to Ride Inflation Rocket;
Forecasts: U.S. Dollar/Euro, U.S. T-Notes, T- Bonds, & Interest Rates,
Gold, Silver, Crude Oil, & Equities,? recently posted in
?Alerts Cache?, on deepcaster.com.
?
Note 3: ?Debauch ? to dissipate; to corrupt morally; to lead away
from excellence or virtue; to reduce the value, quality, or excellence
of??
?
The Fed?s U.S. Dollar-Destructive Q.E. to
Infinity Action, coupled with the ECB?s Similar Action the week before,
boosted the Euro vis-?-vis the Dollar, as we earlier Forecast.
?
But both Actions Guaranteed Accelerating Price
Inflation and thus Deepcaster recommends a Buy Reco (trading around a mere $2.50 per share when we
recommended it) to ride that Inflation Rocket.
?
This Debauchery of the $US weakens its Purchasing
Power and thus increases Burdens on the agonized disappearing Middle Class.
?
The Bernanke claim that buying $40 billion per month
in Mortgage Backed Securities would Stimulate the Economy and help the
Housing Market is just a Fictitious Cover Story. In fact, it is just another
Gift to the Mega-Banks who hold Underwater Paper, and to Wall Street which
proceeded to rally on a Fed-sugared High. And, of course, it is a
pre-election Gift to President Obama.
?
Important Consequences will ensue.
?
To see the Great Profit Potential flowing from this
QE and another recent Buy Reco aimed at Profiting
from it, read Deepcaster?s recent Alert,
?Surmounting Debauchery with Profit; Buy Reco
to ride Inflation Rocket; Forecasts: U.S. Dollar/Euro, U.S. T-Notes, T-
Bonds, & Interest Rates; Gold, Silver, Crude Oil; Equities,?
recently in ?Alerts Cache? at www.deepcaster.com.
?
DEEPCASTER LLC
?
www.deepcaster.com
DEEPCASTER FORTRESS
ASSETS LETTER
DEEPCASTER HIGH POTENTIAL SPECULATOR
?
Wealth Preservation
Wealth Enhancement
?
?
zynga stock zynga stock sam houston state university sam houston state university bradley manning whoopi goldberg tebowing
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.