100%+ Profit Opportunity Knocks via Deepcaster

ALERT

2/3/2023

—100%+ Profit Opportunity Knocks — via Deepcaster

The two main players in one Subsector are today like a coiled Spring just ready to explode upward very Soon

Indeed Fundamentals,  Technicals, Interventionals, and Macro are all signaling a MEGA Move VERY soon!

There are many intensifying challenges for virtually all markets— INFLATION, the Border, the $32Trillion U.S Debt, Fed and other Central Bank monetary policies, Marxist Threats to Capitalism and to Western Civilization and all the rest. But all these challenges and others are about generate a Massive Markets Move, likely starting next week!

—Remember, Deepcaster’s Reliance upon the Real Econ and Markets Numbers Gives us a Great Advantage in recommending profitable Trades for our Subscribers. and avoiding Catastrophes!  Just last Spring Subscribers were able to take 300%, 100%, and 350% profit in just two months.

It is essential for Investors and Traders’ Profit and Protection that they also rely on Real Econ and Markets Numbers in making their decisions and not on Fake News. But alas there is much Fake Econ and Markets News being disseminated by “Official” (often Deep State) sources, usually for Political purposes.

And Reliance on Fake News enables, for a while, reliance on counterproductive Economic and Monetary Theories, of which Keynesian Monetary policy is one.

Alas, in so doing the foregoing Miscreants including The Fed and its slavish followers in government and business are creating an impending Markets CATASTROPHE.

However Those aforementioned two main Players will both Profit and Protect from CATASTROPHE

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“The modern mind dislikes gold because it blurts out unpleasant truths.”  …….  Joseph Schumpeter

Deepcaster has critically noted the decade-long Price Suppression of Gold and Silver by The Fed-led Cartel of Key Central Bankers and Governments to keep Investors in their Fiat Currencies and Treasury Securities.  But that Price suppression must end soon as Precious Metals specialist Tim Murphy points out below:

The Comeback Kid

1/29/23

Every time gold gets hit, it comes roaring back, IE …. The Comeback Kid.  Gold and silver prices are in a great place to continue rising.  Physical demand for gold is overpowering the “paper” selling and as per Ted Butler of Butler Research, “The evidence is clear we are scraping the bottom of the barrel when it comes to available industrial-size quantities of physical silver.”  According to Alasdair Macleod of GoldMoney.com, “Asian central banks and their governments appear to be the principal buyers. Furthermore, before Russia was sanctioned, all her annual output of 330 tons was sold into London, and that supply source has now ceased. Russia is now aggressively accumulating gold. Sergey Glazyev, President Putin’s chief economist, has revealed that in the future Russia will settle its trade balances in gold, and that he expects all members, associates, and dialog partners of the Shanghai Cooperation Organization to do so as well. That is why these governments are building their gold bullion holdings.”

Macleod goes onto say, “The physical gold market is very, very tight and is being cleaned out.  The powers to-be-are getting worried about the lack of supply, and we will see fireworks over the next month.  And adding to this scenario is the new phase starting in the Ukraine war, as the US and Germany are ramping up their supply of tanks to Ukraine, which is referred to as the “breadbasket to the world.”  Inevitably, commodity prices will continue rising.”  Plus, Putin has made it very clear gold will play a big part in future trade.  Of course, this is hugely bullish for gold AND devasting for the US Dollar.

Also, I’d like to point out one more observation made by Macleod:  “It was just in early December that Chinese President Xi was welcomed in Saudi Arabia.  With part of this reason being the US is turning away from fossil fuels,  China came to an agreement with Saudi Arabia regarding long term contracts to supply oil.  And Saudi Arabia is giving other Asian nations the same consideration.  And of most importance, Saudi Arabia is no longer accepting just US dollars for trade.  This is a very important junction in history as we are seeing the end of the fiat dollar regime.”

Lastly, I’d like to finish up with a few words from Mike Savage of Raymond Financial:  “Many may say that “inflation is peaking”. Yes- just like it was transitory. The facts are that the ONLY things that are giving the illusion of lower inflation is the cost of energy and used car prices.  In the meantime- gold and silver are rallying and this is with the manipulation by the banks so they can get as much as they can for as cheap as they can – For Now. I believe that this is a gift for anyone who still needs to build a position in metals.  The times are changing right before our eyes. This is similar to the sea change that took place in the 1970s where interest rates were raised to nearly 20% and then gradually fell for the next 40 years or so. It took a while for people to adjust to the new paradigm of lower rates. I believe that today we are seeing a similar sea-change where rates are likely rising long-term and the tail wind that has been propelling financial assets is now becoming a headwind. In English: Don’t expect the same outcomes that we had in the past 20 years during the next 20 years because the paradigm has CHANGED. I believe that anyone who is looking to thrive in the next few months or years had better CHANGE with it.”

Below are 20-year gold and silver charts.  Gold had a “false break down” at $1620oz and silver experienced one below $20oz. False breakdowns are VERY bullish.  And even though the gold price has risen sharply of late,  internal numbers/sentiment still indicate a great deal of potential for short term higher prices.  When the gold price clears $2070, we will see the “Macleod fireworks.”  Silver continues to “lay in the weeds,” but could bust out of its supportive base any time now.  As you can see, silver has a pattern of breaking out BIG, which is why many experts warn it is wise to own your physical silver now, because chasing silver higher in a raging bull market is not for the feint hearted.

Scottsdale Bullion & Coin

Tim Murphy

So review Deepcaster’s recommendations to buy Gold and Silver and Precious Metal Miners and obtain or maintain a substantial position in them.  They could launch at any time!!

Very best,  Deepcaster


ALERT

1/20/2023

MEGA Move Probable Very Soon — Profit & Protect via Deepcaster

 

Fundamentals,  Technicals, Interventionals, and Macro are all signaling a MEGA Move VERY soon!  Indeed, it is most likely to begin Next Week!!!!!

 

There are many intensifying challenges for virtually all markets— INFLATION, the Border, the $32Trillion U.S Debt, Fed and other Central Bank monetary policies, Marxist Threats to Capitalism and to Western Civilization and all the rest. But all these challenges and others are about generate a Massive Markets Move, likely starting next week!

 

—Remember, Deepcaster’s Reliance upon the Real Econ and Markets Numbers Gives us a Great Advantage in recommending profitable Trades for our Subscribers. and avoiding Catastrophes!  Just last Spring Subscribers were able to take 300%, 100%, and 350% profit in just two months.

 

It is essential for Investors and Traders’ Profit and Protection that they also rely on Real Econ and Markets Numbers in making their decisions and not on Fake News. But alas there is much Fake Econ and Markets News being disseminated by “Official” (often Deep State) sources, usually for Political purposes.

 

And Reliance on Fake News enables, for a while, reliance on counterproductive Economic and Monetary Theories, of which Keynesian Monetary policy is one.

Alas, in so doing the foregoing Miscreants including The Fed and its slavish followers in government and business are creating an impending Markets CATASTROPHE.

_____________________________________________________________________________________________________

The Equities Markets swooned again for much of this past week on inflation and recession fears among other threats

But there are additional developments just aborning which make a serious takedown much more likely very soon.

 

Primary among these is the lousy earnings reports which are beginning to be released.  Earnings are the “mother’s milk” of Equities and the increasing numbers of  layoffs  in major companies, especially Big Tech, presage more lousy Earnings reports and therefore more serious Equities takedowns very soon

Note the confirming Technicals:

Stocks fell sharply Wednesday, January 18th. The Dow Industrials continued to get beat down, losing 1,005 points over the past two days, with a 613 point drop Wednesday. The S&P 500 lost 62 points Wednesday, the NASDAQ 100 fell 146, and the Russell 2000 lost 29. Volume was around its 10 day average.

The Producer Price Index was reported to have risen 6.2% in December from a year earlier. While the mainstream media touted this as improvement, the truth is, this measure of inflation sits at 3.1 times greater than the Fed’s maximum inflation target of 2%. Interest rates are likely to be pushed far higher by the Fed, and far longer, than many think. Why? Because the current inflation is a supply problem, not a demand problem, and rising interest rates tend to affect demand (reduce it) more than help increase supply.

Retail Sales fell 1.1% in December versus a month earlier. So we see a slowdown in economic activity is starting, but this means lower corporate earnings, and as stated above, not necessarily a fix for inflation. Just pain for everyone.

Manufacturing Production fell 1.3% in December versus November. This shows a reduction in supply, the exact opposite of what is needed to reduce inflation.

In the updated chart on page 41, we show that it is quite possible the Industrials’ corrective Micro degree wave 2 rally has topped and Micro 3-down has started. Confirmation would come with strong downside follow-through, which we did get Wednesday. In the chart on page 51, we show that it is also possible that the S&P 500’s corrective Micro degree wave 2 has also topped, but again, we should see strong downside follow through if Micro 3-down is starting.

If so, Micro degree wave 2-up took about a month to correct Micro degree wave 1-down. It was lengthy, and sufficient to make some investors lose any fear of a major decline coming. The VIX fell sharply during this correction. Now we could see a tide change.”

Robert McHugh

And another impending Threat via the Private for-profit Federal Reserve:  Fed Insolvency (from the Mises Institute)

“For the past year overall, the Fed still managed to achieve a positive net income, thanks to positive inflows in the first half of the year. But since September, as Reuters notes, the Fed began recording what’s called a deferred asset, which tallies up the Fed’s loss; the deferred asset stood at $18.8 billion at the end of the year.

The “deferred asset” phrase basically means “losing money” in Fedspeak: the Fed is supposed to make remittances to the US Treasury out of its surplus, but when it has no surplus, the Fed “defers” its payments. We can see how these remittances plummeted into negative territory beginning in September:

The trend of falling remittances is unlikely to reverse in 2023, unless the Fed takes a very dovish turn and forces interest rates down again. What is more likely is that the Fed will hold rates flat or only slightly reduce them. In either case, the Fed will have to keep paying out more in interest than it makes in income.

Why Is the Fed Insolvent Now?

A sizable part of the reason that the Fed has become insolvent in recent months (and almost certainly will be in 2023 overall) stems from the fact that since 2008, the Fed has bought up trillions of dollars in Treasury debt and mortgage-backed securities (MBSs). The Fed has done this to prop up the prices of real estate and government bonds (i.e., to subsidize Wall Street, banks, and the real estate industry.)

Yet it bought these fixed-rate assets when interest rates were very low, and most of those assets have a maturity of over a year. That means that even as interest rates have risen in the past year, the Fed’s income from these assets has not risen sizably. Yet the Fed is also paying banks interest on reserves and reverse repos. That interest rate is not fixed and changes rapidly. So although total reserves at the Fed have fallen by 25 percent in recent months, that won’t bring interest payments down to 2021 levels because interest rates have increased 4,300 percent, from 0.1 percent to 4.4 percent.

The end result? The Fed is now paying out more interest to banks than it earns in income from the MBSs and government bonds that it holds in its portfolio. Thus, as we saw in the Fed’s Friday release, outflows in interest payments have surged but income has not, and the Fed is now forced to defer its promised payments to the Treasury.

Another complicating factor driving the Fed deeper into the red is the fact that its portfolio is also losing value.

(The key to understanding how this becomes a problem is to remember that bond prices move in the opposite direction of interest rates. So, as newly issued bonds’ interest rates [i.e., yields] move up, the prices of existing bonds move down.)

As interest rates have moved up in the past year, the value of the Fed’s MBSs and Treasury debt has fallen. So now the Fed also has less capital. Thanks to Enron-like accounting, however, the Fed’s bankruptcy is legally just a matter of “deferred assets,” so it’s not a legal problem for the Fed.

Nonetheless, that the Fed’s losses are likely to mount further and require a bailout can be seen in the fact that we’ve seen this sort of problem before. As noted by Alex Pollock in a 2022 lecture at the Mises Institute, the Fed has put itself in a situation similar to the one that sank the savings and loans in the early 1990s. Like the S and Ls, the Fed “invested” in large amounts of long-term debt at low fixed interest rates. But then interest rates went up. The fixed-rate interest income stayed largely the same, but interest payment obligations increased sizably. That’s where the Fed is now.

For a normal financial institution, this situation leads to bankruptcy. But the Fed will bail itself out by printing money. In the end, that means price inflation, either in assets like stocks and real estate or in consumer goods like eggs and auto parts. Ordinary people will see their cost of living go up and their real wages fall, and they’ll get poorer. Through it all, though, the Fed and the regime itself will benefit. As the Fed has been careful to say in recent days, its de facto bankruptcy does not impede its ability to carry out its usual inflationary monetary policy. Never fear—because the Fed can create its own income at will via monetary inflation, the regime will continue to benefit from the Fed’s usual tricks. The regime will be able to run higher deficits, spending on “free” benefits for the voters and on corporate welfare for the politically powerful. It’s all a great scam for the parasitical class. For the productive classes? Not so much.

Author:  Ryan McMaken

–Key Takeaways:   The Fed is no longer making money, so it has not been making payments due to the U S Treasury, which exacerbates the USAs debt Problem already at nearly 32 Trillion Dollars.  But as author Mcmaken points out the Fed will “bail itself out by printing money”

…..In the end that means Price Inflation…”

Conclusion:  In addition to all the forces causing Equities to drop recently.  one must NOW add Earnings disappointments in major corporations, now coupled with a Fed “Bankruptcy” and consequent additional Fed Money Printing resulting in even more inflation and business and personal debt defaults.  More overleveraged businesses will become zombies and collapse.

And NOW the “Smart Money” sees all this coming and very soon will likely exit the Equities Markets en Masse causing Monster Crash Legs

See recent Deepcaster letters and Alerts to maximize Protection and Profit via Investments in the three “F”‘s e.g. and other investments aimed at Protection and Profit from all of the foregoing challenges. So review Deepcaster’s Letters and Alerts to see these.

Very best wishes

Deepcaster


ALERT

1/13/2023

Markets CATASTROPHE Likely — see Deepcaster Alert re Protection & Profit

 

There are many intensifying challenges for virtually all markets— inflation, the Border, the $32Trillion U.S Debt, Fed and other Central Bank monetary policies, Marxist Threats to Capitalism and to Western Civilization and all the rest.

—And remember, Deepcaster’s Reliance upon the Real Econ Numbers Gives us a Great Advantage in recommending profitable Trades for our Subscribers.and avoiding Catastrophes!  Just last Spring Subscribers were able to take 300%, 100%, and 350% profit in just two months.

It is essential for Investors and Traders’ Profit and Protection that they also rely on Real Econ Numbers in making their decisions and not on Fake Econ News. But alas there is much Fake Econ News being disseminated by “Official” sources, usually for Political purposes.

And Reliance on Fake News enables, for a while, reliance on counterproductive Economic and Monetary Theories, of which Keynesian Monetary policy is one.

Alas, in so doing The Fed and its slavish followers in government and business are creating an impending CATASTROPHE.

================================

 

The Fed’s and “Mainstream Media Thought Leaders”  have for years developed and implemented policies based on their commitment to Keynesian Money Printing–can-lead-to-economic-health-THEORY

Alas that is leading us ever closer to an impending economic CATASTROPHE.

 

Consider the following from David Stockman:

It can be summed up in the conclusion:  Keynesian Money Printers have inflated the Greatest Financial Bubble in History and that Bubble is about to break with CATASTROPHIC consequences……..

“An examination of the CPI weighting scheme sheds further light on the high, sticky inflation readings which lie in the Fed’s inflation-fighting path ahead.

Y/Y Change In Components of CPI for Food and Energy, February 2020 to

For instance, food and energy as a whole accounts for 22.1% of the CPI, but there is a clear difference between the pure commodity component of these items versus the portion in which services and domestic labor costs are mixed into the figures.

To wit, the food-at-home or grocery store portion of the food index above (purple line) is a largely commodity driven figure, and it accounts for 8.3% of the overall CPI. By contrast, the food-away-from-home index (blue line), which accounts for 5.1% of the CPI total, has a heavy services/labor component. That’s because it represents items purchased at restaurants and other labor-intensive food service establishments.

Since the pre-Covid peak in February 2020, there has been a considerable divergence between these two sub-components of the food index. The commodity-oriented portion is up at a 7.4% annual rate, while the restaurant portion is up by just 5.6%.

As to the former component, however, here’s a chart that tells you what is really happening.

Consumers spent 15% more on groceries during Q1 2022 than they did in Q1 2020. But when you squeeze out the inflation, they ended up where they started two years earlier measured by inflation-adjusted dollars.

Needless to say, when even spending on groceries is on a treadmill, it doesn’t take much imagination to fathom where more discretionary purchases are trending. To wit, to the bargain basement bin at big box retailers which have way overstocked these items.

In any event, the gap between soaring grocery store prices and somewhat more restrained restaurant menu prices reflects mainly the lagging impact of rising wage costs in food-away-from-home prices. The latter will eventually catch-up to the grocery store commodity components and then some. After all, during the last five quarters, wage rates in the Leisure & Hospitality sector have been rising at 10-15% per annum, and these soaring costs will eventually pass through into menu prices.

In the case of energy, the bifurcation is even more extreme.

The energy commodity components (e.g. gasoline and diesel) account for 5.2% of the CPI weight and are up by 28.8% per annum since February 2020 (black line with squares). By contrast, the energy services components (e.g. utilities) account for 3.5% of the CPI weight, but are up at just 10.9% per annum rate (yellow line with circles) during the last 28 months.

Again, energy services will eventually catch up to the commodity components, once lagging regulatory and labor cost factors are passed-thru into selling prices.

In short, the underlying mechanics of even food and energy are not as simple as the surface impression might suggest. Even as gasoline and wheat costs come off the boil, still rising restaurant and energy services prices will likely off-set a significant portion of the commodity side relief.

On the other hand, the purely services components (less energy services) of the CPI account for nearly 57% of the weight in the headline index, and they have nowhere to go except higher.

That’s because 31.9% of the weight is accounted for by rent of shelter (including OER), where recent 5% Y/Y readings are drastically lagging the 15-20% gains in private sector measures of asking rents. Likewise, the 24% balance is accounted for by labor intensive services, which still have a significant catch-up momentum from rising wage rates.

These latter components include the following services and respective weights in the overall CPI:

  • Medical care services: 6.8%;
  • Motor vehicle lease, insurance and repair services: 4.8%;
  • Education and communications services: 5.3%;
  • Recreation services including video, telecoms etc: 3.1%;
  • Water, sewer and household operations services: 1.9%;
  • Public transportation and airfares: 1.0%;
  • Other personal services, 1.4%;
  • Subtotal, Services other than shelter: 24.3%;

Needless to say, the recent data make clear that the relatively tame services components, which posted at 2-3% Y/Y during the 2012-2019, are now taking flight as well. The Y/Y increase for the June 2022 quarter, in fact, was 5.5% compared to just 3.0% in the June 2021 quarter.

Y/Y Change In CPI Services Less Energy Services, 2012-2022

Keynesian money-printers inflated the greatest financial bubble in history owing to the absurd belief that there wasn’t enough goods and services inflation, and that the central bank was therefore obligated to stimulate higher inflation from below.

Now, however, this illusive inflation is deeply embedded and still gathering momentum. So getting down to their 2.00% inflation target from above means only one thing: Namely, that they will blow sky high the very same financial bubbles they fostered on the way to the present monetary catastrophe.

  David Stockman

Former Congressman David A. Stockman was Reagan’s OMB director, which he wrote about in his best-selling book, . His latest books are The Great Deformation: The Corruption of Capitalism in America and . He’s the editor and publisher of the new David Stockman’s Contra Corner. He was an original partner in the Blackstone Group,

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Read Deepcasters recent letters and Alerts re how to protect and Profit.

In particular consider investing in the “Three Fs” which we recommend and in Gold, which, after many years of Price Suppression by The Fed-led Cartel is likely to break out very soon.

And IF Silver can continue to close higher than $24/oz. (at which point The Cartel has successfully capped it for years) then Silver too is finally breaking out!

 

Very best

Deepcaster

 


BUY RECO

1/6/2023

100%+ Profit Potential QuicklyBUY RECO

A SUSTAINABLE BULLISH move is likely in the BUY RECO we recommend today.

And it provides both Protection and the Probability of at least 100% Profit, or more,….quickly. And the foregoing despite the many ongoing challenges of inflation, the border,the $32Trillion U.S Debt, Fed and Central Bank monetary policies, Marxist Threats to Capitalism and to Western Civilization and all the rest.

So log in to Deepcaster.com to see our BUY RECO today.

—And remember,, Deepcaster’s Reliance upon the Real Econ Numbers Gives us a Great Advantage in recommending profitable Trades for our Subscribers.  Just last Spring Subscribers were able to take 300%, 100%, and 350% profit in just two months.

It is essential for Investors and Traders Profit and Protection that they also rely on Real Econ Numbers in making their decisions and not on Fake Econ News. But alas there is much Fake Econ News being disseminated by “Official” sources, usually for Political purposes.

 ——————————————————————————————

 

Long time subscribers know that Deepcaster has repeatedly criticized the Fed-led Cartel of Central Banks for their years-long suppression of Gold and Silver prices.  We understand that one main reason they do this is to keep Investors in their Fiat Currencies and Treasury securities

 

HOWEVER, the CB generated excess “money” printing and Debt encouragement is about to come to an end as Economic Realities become ever more dominating.

 

  So it is no surprise that

    1)  Many Central Banks have begun to Buy Gold, especially, and Silver too and because their selling into the market to suppress prices has become less and less effective, and therefore

     2)  Gold has “caught, and sustained, a bid” closing recently at multimonth highs

 

   So today we are going to recommend that you consider buying a leveraged long Gold ETF

  Proshares Ultra Gold — UGL

 

But we hasten to add this WARNING:  

The Central Banks have not given up on their Precious Metals Price Suppression policies,  and for this reason, and others  Gold may not continue its rise, and Investors in UGL may lose most or all of their money!   That said:

 

This ETF offers 2x daily leverage to gold prices, making UGL a powerful tool for expressing a bullish outlook on precious metals. It should be noted that the daily reset feature combined with the explicit leverage in this ETF make UGL inappropriate for investors without the ability or willingness to monitor this position on a regular (daily) basis. Moreover, investors should note that the underlying index won’t always move in unison with spot gold prices, even over the course of simply a single trading session. For sophisticated investors with a fair amount of tolerance for risk and volatility, this ETF can be a very powerful tool. But UGL shouldn’t ever be found in a long-term, buy-and-hold portfolio; it’s simply too risky, and the nuances of this fund make significant losses possible when held for an extended period of time in volatile markets. UGL is a trading instrument,and should be treated as such.

 

  Recommendation to Consider:

  Buy shares in UGL  at or under $59/share.

  UGL is trading at around $56/share as we write

 

  Best Wishes and Happy New Year!

  Deepcaster

 

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