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Essential Investor Preparations For The Big Crisis
The Market Oracle ^ | 2-3-2012 | DeepCaster LLC

Posted on 02/04/2012 10:44:15 AM PST by blam

Essential Investor Preparations For The Big Crisis

Stock-Markets / Financial Markets 2012
Feb 03, 2012 - 10:12 AM
By: DeepCaster LLC

“The U.S. economic and systemic-solvency crises of the last five years continue to deteriorate. Yet they remain just the precursors to the coming Great Collapse: a hyperinflationary great depression. The unfolding circumstance will encompass a complete loss in the purchasing power of the U.S. dollar; a collapse in the normal stream of U.S. commercial and economic activity; a collapse in the U.S. financial system, as we know it; and a likely realignment of the U.S. political environment. Outside timing on the hyperinflation remains 2014, but events of the last year have accelerated the movement towards this ultimate dollar catastrophe.
Following Mr. Bernanke’s extraordinary efforts to debase the U.S. currency in late-2010, the dollar had lost its traditional safe-haven status by early-2011. Whatever global confidence had remained behind the U.S dollar was lost in July and August. That was in response to the lack of political will—shown by those who control the White House and Congress—to address the long-range insolvency of the U.S. government, and as a result of the later credit-rating downgrade to U.S. Treasury debt.

“The economy has underperformed and likely will continue to underperform consensus forecasts by a significant margin. In turn, weaker-than-expected economic growth will mean significantly worse-than-expected federal budget deficits, Treasury funding needs and banking-system solvency conditions.

“With the U.S. election just nine months off, political pressures will mount to favor fiscal stimulus measures instead of restraint. …Consistent with the precedent set in 2008, the Fed, and likely the Treasury, also will remain in place to do whatever is needed, at whatever cost, to prevent systemic collapse in the United States. All of these actions, though, have costs in terms of higher domestic inflation and intensified dollar debasement.

“The U.S. dollar remains highly vulnerable to massive, panicked selling, at any time, with little or no warning. The next round of Federal Reserve or U.S. government easing or stimulus could be the proximal trigger for such a currency panic and/or for strong efforts to strip the U.S. currency of its global reserve currency status.

As the advance squalls from this great financial tempest come ashore, the government could be expected to launch a variety of efforts at forestalling the hyperinflation’s landfall, but such efforts will buy little time…”

John Williams, shadowstats.com, “Hyperinflation 2012”, 1/25/12

Ominously, just last December 2011, Ostensible U.S. Ally Japan, and China, agreed to a currency Swap Arrangement. This move further eroded the status of the U.S. Dollar as the World’s Reserve Currency.

More importantly it underlines the Fundamental Flaw not only in the U.S. Dollar, but also in the world’s other major Currencies – they are Pure Fiat Currencies… Keynesian Spawn.

Having no intrinsic value, Fiat Currencies facilitate a variety of destabilizing phenomena. One is that their Purchasing Power is easy to debase whether by Avaricious Mega-Bankers or by Politicians who want to reward their constituents, but not have them pay for their borrowed benefits currently. A typical result is The Great Currency Purchasing Power Degradation we are now seeing.

The U.S. Dollar has lost over 95% of its Purchasing Power since the Private for-Profit Fed was established in 1913 and the amount of Interest Taxpayers have paid the Mega-Bank Owners of the Fed since then is in the $Trillions.

Earlier this week an informative and widely read newsletter pompously intoned: “Washington has decided to kill the dollar.” We and a few others have been saying so for years. (See e.g.,”Dire Economic Forecast Reveals Profit Opportunities & Cartel ‘End Game’ Threat” (6/20/08) in the Articles by Deepcaster at deepcaster.com.

The U.S. now continues on such a path (with the Euro following along) and it has already led it to the threshold of Hyperinflation with 10.57% per year Real Inflation per shadowstats.com, (Note 1) Official Figures are Bogus.

Shadowstats Proprietor, Economist, and Statistician Extraordinaire John Williams tells it like it is (Rara Avis!).

The U.S. is at the threshold of a Hyperinflationary Great Depression.

Consequences and Essential Preparations:

“The effects of QE2 included debasing the U.S. dollar. As the dollar weakened against other currencies, oil prices soared, and that spiked U.S. consumer inflation. Although the Fed likes to tout “core” inflation, net of food and energy costs, the oil inflation also has begun to spread into the broader economy.

“The economic and systemic crises, triggered by the collapse of debt excesses that had been encouraged actively by the Greenspan Federal Reserve, have been centered on the U.S. financial system. … then-Federal Reserve Chairman Alan Greenspan played along with the political and banking systems. He made policy decisions to steal economic activity from the future, fueling economic growth of the last decade largely through debt expansion.

“The Greenspan Fed pushed for ever-greater systemic leverage… Also complicit in this broad malfeasance was the U.S. government, including both major political parties in successive Administrations and Congresses.

“As with consumers, though, the federal government could not make ends meet. Driven by self-serving politics aimed at appeasing that portion of the electorate that could be kept docile through ever-expanding government programs and spending, political Washington became dependent on ever-expanding federal deficit spending, unfunded obligations and debt.

“While Wall Street may hail any artificial propping it can get from the Fed’s efforts to support the markets, more than “moderate” related declines in the U.S. dollar’s exchange rate destroy any illusions of stock gains and savage the U.S. consumers’ dollar purchasing power. A declining dollar can turn U.S. stock profits into losses for those living outside the dollar-denominated world, as funds are converted back to the strengthening currency domestic to the investor.
Inflation driven by dollar weakness will do the same for those in a U.S. dollar-denominated environment, where, eventually, inflation can turn U.S. stock profits into real (inflation-adjusted) losses.”

John Williams at shadowstats.com, “Hyperinflation 2012”, 1/25/12

Essential Preparations

The U.S. Dollar’s Ultimate Crash will likely be Rapid, and because of its (then former) Reserve Currency Status will be felt around the world. Williams puts the no-later-than date at 2014.

Only very few Assets will be Relatively Immune to its dramatically Negative Effects.

But before then there will be as he says, “Advance Squalls” coming ashore, (the 2008-2009 Crash was one and MF Global bankruptcy another) so it is important to prepare now.

Just consider that the Fed-led Cartel ‘End Game’ Plan is set. (See Note 4 re Cartel) All that Prior and Ongoing Cartel Money and Credit Creation will likely lead to Hyperinflation followed by Collapse and a Depression (Think Weimar Republic or Zimbabwe).

Bob Chapman describes one likely course of events.

Here we have QE 3 in the works as we predicted months ago. We said it would consist of the Fed buying the banks garbage so they have cash to follow the Fed’s orders. Those orders will be to buy Treasuries, Agencies and to make loans to small and medium companies. Before the Fed bought $1.4 trillion of this paper, mostly MBS and CDO’s. We never found out what the Fed paid for previous purchases and we won’t this time either. This is another gift the Fed, or should we say taxpayer gifts to the banks.
What we are seeing in Europe and again shortly here is another stuffing of the system with money and credit. The Fed is headed down the road of no return and they know exactly what they are doing. That is playing money and credit creation to the bitter end. Historically no central bank has had the power to do this. If played out to the end we have to expect hyperinflationary depression, which will end in a deflationary depressionary collapse.
This will destroy the value of the US dollar and its purchasing power. The entire system will probably collapse to a great extent including perhaps 60% of commerce, 40% to 50% unemployment, and the end of the financial system and resorting to bartering, the social support system and government. They will all collapse, so you had better prepare for it. All this will be expedited if Ron Paul is not elected our next president. If he were to be elected he could short-circuit many programs and policies that are destroying our nation.

Bob Chapman, The International Forecaster theinternationalforecaster.com, February 1, 2012

Recommendations and Observations

Buy Physical Gold and Silver to be held in Personal (not Bank Vaults) Possession, and Mining Shares with a Caveat.
The Caveat re Mining Shares is that they are “Paper”/Digital Securities. Thus because a Dollar Crash and the “squalls” leading up to it will affect all Paper/Digital Money flows, invest in solid Miners Now, but be prepared to continue to re-evaluate the “Money Flows Risk” before The Great Dollar Crash.
That Impending Great Crash will lead to numerous Counter Party Failures. It is thus essential to be out of Assets with Great Counter-Party Failure Risk prior to The Great Crash.
But Prior to that Crash, it is reasonable to Incur Counter Party Risk, provided one plans to be “out” in time (a challenging task!).
In making this Critical Timing Determination to evaluate the Financial and Economic Squalls as they come ashore. One of Deepcaster’s Ongoing Primary Goals is to help our readers make such Timing Judgments. Thus we include Forecasts for most Major Sectors in each week’s letter or Alert. 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.

Given the aforementioned Real Inflation Reality, it is essential that one Aim for Total Return (Gains plus Yield) in excess of that (10.57% Real Inflation in the U.S., e.g.). Deepcaster has designed its High Yield Portfolio with that Aim. Those selections had recent Yields of 18.5%, 8.6%, 10.6%, 26%, 6.7%, 8%, 10.6%, 10% and 15.6% when added to the Portfolio. (See Note 2)
Become familiar with the ongoing Cartel ‘End Game’ which we have described in several articles including “Gold-Freedom versus The Cartel ‘End-Game’ & A Strategy for Surmounting It (09/23/10)” and “Surmounting The Armageddon Scenario & Cartel ‘End Game’(2/26/10)” in “Articles by Deepcaster” Cache at deepcaster.com.
As well as investing in Precious Metals, Invest in Tangible Assets in relatively Inelastic Demand. We specifically, for example, have recommended Specific Agricultural investments in recent Alerts. (See Note 3) Consider seriously getting out of variable-rate debt and into fixed rate debt.
Get regular Input from Independent News Sources. Several Financial and other Mainstream Media periodically Manufacture or Censor or Spin Real News.
Prepare to Barter. Silver coins and Canned Food are useful barter items.

And Bill Gross properly blames The Fed for

“We are witnessing the death of abundance and the borning of austerity, for what may be a long long time. Monetary and Fiscal Excesses carry with them explicit costs…significant costs that may be ahead for a global economy and financial marketplace still functioning under the assumption that cheap and abundant central bank credit is always a positive dynamic.”

Bill Gross, PIMCO 2/1/12

True, but perhaps the Understatement of the Year.


TOPICS: News/Current Events
KEYWORDS: collapseu; economy; finance; investing
I do not endorse any investment suggestions made in this article as I do not make investment suggestions or endorsements, period. (I am a retired chip-maker...that's my back-ground, not investing)
1 posted on 02/04/2012 10:44:22 AM PST by blam
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To: PhilDragoo

Apocalyptic Ping


2 posted on 02/04/2012 10:53:26 AM PST by ntnychik
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According to NPR via NYT
NEWT leads Mitt 39-32
when FL vote divided per RNC rules!

Pass the word!


Click to Donate to Newt Gingrich

CONTACT FOR RNC: website@nrcc.org

310 First Street
Washington DC 20003

Encourage them to do the RIGHT thing, end the FL fiasco NOW, Play by the rules!

3 posted on 02/04/2012 10:56:22 AM PST by hoosiermama (FR Unite... Get active contacting MSM, RNC. etc... freepmail : Mountain Mary.)
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To: ntnychik

Some desparately hope there will be merely hyperinflation instead of war.

For Europe, that is a Pollyanna fantasy. For the US, its touch and go.


4 posted on 02/04/2012 10:56:41 AM PST by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
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To: blam
All this will be expedited if Ron Paul is not elected our next president. If he were to be elected he could short-circuit many programs and policies that are destroying our nation.

Bob Chapman, The International Forecaster theinternationalforecaster.com, February 1, 2012

Hmm, not so sure about this guy.

5 posted on 02/04/2012 11:01:02 AM PST by 2111USMC (Not a hard man to track. Leaves dead men wherever he goes.)
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To: blam

I endorse a year’s food,a secure water source,and lots and lots ammmo.


6 posted on 02/04/2012 11:03:58 AM PST by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: Farmer Dean

18,000 Dow !
Someday...


7 posted on 02/04/2012 11:12:06 AM PST by Eric in the Ozarks (Eh ?)
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To: Kartographer

Ping.


8 posted on 02/04/2012 11:12:37 AM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: Eric in the Ozarks

18,000 Dow !

Coupled with $18/gallon gasoline.


9 posted on 02/04/2012 11:15:18 AM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: Eric in the Ozarks
18,000 Dow ! Someday...

In 'real' terms about 18 or possibly even 1.8

10 posted on 02/04/2012 11:20:08 AM PST by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: Farmer Dean

Not trying to be a smart guy, but after you eat up your years worth of food and shoot anyone who tries to get it - then what? Who knows, but if the whole economy collapses, we’re going to be in so much trouble no amount of “prepping” will ensure long-term survival. I’m not against it, just saying that if S really HTF, there will be martial law and all kinds unpredictable factors that will make Obamacare look like nothing. The book about an EMP attack “One Second After” written by one of Newt’s buddies really is sobering.


11 posted on 02/04/2012 11:35:08 AM PST by bigbob
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To: blam
..."Physical Gold and Silver to be held in Personal (not Bank Vaults) Possession,..."

They all talk about Gold, Silver, Food, Water, Barter items, etc. Those smart preparations mean very little if you are not trained, prepared, and equipped with good fire arms, lots of ammo, and a defensible piece of property as far away from urban areas as possible.

12 posted on 02/04/2012 11:48:02 AM PST by mosaicwolf (Strength and Honor)
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To: appalachian_dweller; OldPossum; DuncanWaring; VirginiaMom; CodeToad; goosie; kalee; ...

Prepper’s Ping


13 posted on 02/04/2012 1:02:14 PM PST by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
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To: blam
All this will be expedited if Ron Paul is not elected our next president.

As far as I got.

14 posted on 02/04/2012 1:16:18 PM PST by Chuckster (The longer I live the less I care about what you think.)
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To: bigbob
"The book about an EMP attack “One Second After” written by one of Newt’s buddies really is sobering.

It sure was. It was the book that convinced me that I must have a store of antibiotics.(and, now I do)

15 posted on 02/04/2012 1:40:19 PM PST by blam
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All contributions are for the Current Quarter Expenses.


Donate to Free Republic!

16 posted on 02/04/2012 1:54:39 PM PST by RedMDer (Forward With Confidence!)
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To: blam
It sure was. It was the book that convinced me that I must have a store of antibiotics.(and, now I do)

Where does one get them?

17 posted on 02/04/2012 2:26:57 PM PST by avenir (I'm pessimistic about man, but I'm optimistic about GOD!)
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To: Farmer Dean

I will second that emotion and add one additional item. An alternative energy source.


18 posted on 02/04/2012 3:43:20 PM PST by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: blam

“Martenson Interviews Dines: ‘Wealth In The Ground’ Is Your Best Bet to Surviving the Coming ‘Supernova of Inflations’”
Submitted by Tyler Durden on 02/04/2012

http://www.zerohedge.com/news/martenson-interviews-dines-wealth-ground-your-best-bet-surviving-coming-supernova-inflations


19 posted on 02/04/2012 3:49:04 PM PST by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto.)
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To: avenir

There is a doctor associate with survivalblog.com that will sell you antibiotics for a relatively high but reasonable price. There is another alternative that some of us use strictly for SHTF scenarios:

http://www.entirelypets.com/thomaslabsfish.html?gclid=CPW8x_ep4q0CFYbe4AodzTXBkg

http://www.thatpetplace.com/pet/cat/info/22950/category.web

They are supposed to be the same as human antibiotics and much, much cheaper. If you have a good doctor he may prescribe you some to store.


20 posted on 02/04/2012 3:55:10 PM PST by suthener
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To: Georgia Girl 2

Just bought a 15KW PTO driven generator for the farm tractor.I own an old John Deere 730 diesel that is full mechanical injection.EMP impervious.


21 posted on 02/04/2012 4:19:48 PM PST by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: bigbob

“One Second After” woke me up to the “worst case” possibilities. There is no perfect way to prep for every disaster. Use common sense, prepare your mind for anything. Hopefully pleasantly surprised when its not so bad.


22 posted on 02/04/2012 4:58:14 PM PST by vanilla swirl (We are the Patrick Henry we have been waiting for!)
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To: bigbob
Not trying to be a smart guy, but after you eat up your years worth of food and shoot anyone who tries to get it - then what? Who knows, but if the whole economy collapses, we’re going to be in so much trouble no amount of “prepping” will ensure long-term survival.

I just can't emphasize how wrong you are here. First of all, after about six months you're going to be completeing with a *lot* fewer people for resources. Beyond that, emergency provisions will buy many people the time to become better physically conditioned to survive.

As my wonderful grandfather was so fond of saying ... "Can't never could do nothing!"

23 posted on 02/04/2012 7:41:44 PM PST by The Duke
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bfl


24 posted on 02/04/2012 8:01:48 PM PST by ChowChowFace
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To: avenir
"Where does one get them? "

Read this:

A Doctor's Thoughts On Antibiotics, Expiration Dates, And TEOTWAWKI, By Dr. Bones

Then, go here to buy them without a prescription. I've bought my antibiotics from here for years:

Cal Vet Supply

25 posted on 02/04/2012 9:35:45 PM PST by blam
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To: combat_boots
"“Martenson Interviews Dines: ‘Wealth In The Ground’ Is Your Best Bet to Surviving the Coming ‘Supernova of Inflations’”"

That was good. Thanks.

26 posted on 02/04/2012 9:42:56 PM PST by blam
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To: blam; suthener

Thank you both.


27 posted on 02/04/2012 10:54:12 PM PST by avenir (I'm pessimistic about man, but I'm optimistic about GOD!)
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