Essential Knowledge for Maximizing Real Gains in 2016

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Essential Knowledge for Maximizing Real Gains in 2016

As of February 5, 2016

As Deepcaster forecast several weeks ago, the Equities Markets have taken serious Hits in January, 2016. Also the High Yield Junk Bond Market has taken, and will continue to take a hit. And this is only the beginning, because when Debt Defaults begin, they tend to Multiply in a “Domino Effect.” We are beginning a months-long Debt Deflationary Economic Contagion and it will be Brutal. As former OMB Director David Stockman says of our over-financialized — courtesy of The Fed — Economy:

“There is going to be carnage in the casino, and the proof lies in the transcript of Janet Yellen’s press conference. She did not say one word about the real world; it was all about the hypothetical world embedded in the Fed’s tinker toy model of the US economy….

“This stupendously naïve old school marm still believes the received Keynesian scriptures as penned by the 1960s-era apostles James (Tobin), John (Galbraith), Paul (Samuelson) and Walter (Heller).

“But c’mon. Those ancient texts have no relevance to the debt-saturated, state-dominated, hideously over- capacitated global economy of 2015. They just convey a stupid little paint-by-the-numbers simulacrum of what a purportedly closed domestic economy looked like even back then.

“That is, before Richard Nixon had finally destroyed Bretton Woods and turned over the Fed’s printing presses to power aggrandizing PhDs; and before Mr. Deng had thrown out Mao’s little red book in favor of a central bank based credit Ponzi.

“As you listened to Yellen babble on about the purported cyclical “slack” remaining in the US economy, the current unusually low “natural rate” of federal funds, all the numerous and sundry “transient” factors affecting the outlook, and the Fed’s fetishly literal quest for 2.00% inflation (yes, these fools apparently think they can hit their inflation target to the second decimal place), only one conclusion was possible.

“To wit, sell the bonds, sell the stocks, sell the house, dread the Fed!

“In a global economy that is plunging into an epic deflationary contraction, Yellen & Co still embrace mythical and unmeasurable benchmarks for domestic full employment and other idealized performance targets….”

“Sell The Bonds, Sell The Stocks, Sell The House  – Dread The Fed!,” David Stockman, via lemetrepolecafe.com, 12/18/2015

Generally, we agree with Stockman, except we offer a better way of Profiting and Protecting, than selling everything. Read on.

In sum, The Private-for-Profit Fed’s ZIRP has created Massive Bond and Equities Bubbles. For Deepcaster’s Forecasts for which Sectors likely to make Mega-Moves first and for our Consequent Buy Recommendations, see our recent Letters and Alerts. Indeed, in our February Letter, we outline one Simple Strategy which is likely, given the Unique Economic and Market Realities in 2016, to result in both Profit and Wealth Protection.

Looking farther down the Road (months away), if The Fed is compelled (i.e., by a Market Crash, or Credit Default Domino Effect), to do another round of QE (as we expect it eventually will), then the recently strong $US will begin to Fall.

Some such Negative Catalyst is a virtual Certainty, the Only Question is the timing.

The U.S. Economy is ostensibly the strongest in the World these days. In Reality, the U.S. Labor Force Participation Rate is at a 40-year low. And other data indicates the Declining Trend of slow Economic Growth. (See Note 1 from Shadowstats.com re the Real Numbers)

In fact, US manufacturing is in a recession falling for the 4^th Straight Month as of January, 2016 (ISM) and, indeed, so is the rest of the economy. And this will Greatly Worsen if the U.S. Job-Killing TPP “Trade” (Mandating Open Borders!) Deal Passes.

But note that One Great Delusion (which is gradually being dispelled) is that the U.S. Economy can/is somehow stronger than all the rest and can stay stronger despite the decelerating Eurozone and China and Japan.

Even putting aside the USA’s $19 Trillion Deficit and its $200 Trillion plus downstream unfunded liabilities and a congeries of lousy Economic News, the Fact is that Prospects for the U.S. Economy are closely linked to the prospects for the rest of the World.

Indeed, there is $9 Trillion of $US denominated credit outstanding to Non-Bank Borrowers outside the USA. Consider the potential Ripple (Tsunami!) Effect when Significant Numbers of Defaults begin and, especially, when the $555 Trillion (including Derivatives) Credit Bubble begins to Burst.

We have already laid out Triggers for and Signals of an impending Crash Leg in our recent Letters and Alerts.

And the Fundamentals we have earlier laid out support our View, e.g., U.S. Consumption Growth Peaked in Q1 2015!

Indeed, Billionaire Investor, Jim Rogers, had it nailed two years ago when he said:

“Noted investor Jim Rogers says outgoing Federal Reserve Chairman Ben Bernanke has set the stage for the collapse of the U.S. central bank within the next decade, and had turned the nation’s fiscal balance sheet into ‘garbage.’

“In a recent interview with the British financial website Mineweb, Rogers said Bernanke and his fellow central bankers in other countries have brought the global economy to the brink of disaster….

“Rogers predicted that history will remember Bernanke as ‘the guy who set the stage for the demise of the central bank in America.’

“‘It’s not a possibility,’ Rogers said, ‘it’s a probability. People will realize that these guys have led us down a terrible path. The Fed balance sheet has increased by 500 per cent in the last five years, and a lot of it’s garbage.’…”

“Jim Rogers: The Federal Reserve’s Days Are Numbered,”

Moneynews, 01/06/2014

Master Investor Jim Rogers’ Negative view of the private-for-profit Fed (which, under Janet Yellen, has doubled down on Bernanke’s Policies) is echoed by former Director of the OMB, David Stockman, who said that The Fed has created “The Mother of All Bubbles.” We agree, and would add that the ongoing and prospective Effects of Fed Policy and Market Interventions are the Most Essential Data (among several) for Maximizing Real Gains going forward.

Consider the following from the Establishment The Wall Street Journal of all places.

“Foreign banks are collecting billions of dollars in interest from the Federal Reserve, analysts said, a sum that stands to rise when the central bank ultimately begins raising interest rates.

“In 2014, the Fed will pay … an estimated $3.37 billion headed to foreign banks specifically, according to an analysis from J.P. Morgan, which used Fed data.”

“Foreign Banks Collecting Billions from the Fed,” Mike Cherney

Blogs.wsj.com, 05/08/2014

Ah yes, $3.37 billion in printed $US “paid” to Non-US Banks for “Interest.” Such a deal for the Purchasing Power of U.S. Savers, Retirees and Taxpayers! (Sarcasm intended!)

So it is Important to Understand the How and Why of Fed Policies and their Effects are Most Essential. And therefore How Investors and Traders can Profit and Protect.

Indeed, Signals from Interventions, as well as Fundamentals and Technicals have facilitated Deepcaster’s recent Profitable Recommendations (see Note 3 below).

“Since its inception in 1913, The Federal Reserve Board has been responsible for almost 95% devaluation of the U.S. Dollar. All this has been achieved through its ability to continually inflate the money supply.

“And, between 1985 and 2005, the Federal Reserve Board has increased the money supply by five times. This extraordinary money creation is merely the catalyst for debt creation. In a fiat money system, money is debt…there is absolutely no way this money can ever be repaid except by continued inflation. But, now that the credit bubble is blown up, inflation is no longer an option; bankruptcy looms.”

“The Federal Reserve…What Has It Done For You Lately?”

Ian Gordon, December 29, 2007, www.axisoflogic.com

Indeed, a few months after Ian Gordon correctly announced “the credit bubble is blown up,” it (the housing Bubble), bust and the 2008-2009 Market Crash ensued.

But there is an even greater wealth destroying effect of Fed money-printing Policies – the Destruction of the Purchasing Power of that Fiat Currency itself. See the Real Inflation numbers from Shadowstats, Note 1.

Pick any period of rising U.S. Equities Markets whether from the September, 2002 lows through the September, 2007 high, or the December, 2011 lows to the late March, 2012 highs.

These Highs lulled some investors and several commentators into believing that they had Real Gains as of September, 2007 or March, 2012. Unfortunately, when properly measured, many of these Ostensible Gains actually are not.

Deepcaster contends that the Proper Measure for Gains is “Purchasing Power.”

Indeed, while the nominal Wages of Americans have suffered about a 10% decline in the past seven years, their Purchasing Power Decline is much greater.

Why? Because the Private-for-Profit Fed, the ECB, and other Central Banks are increasingly Printing/Digitizing Fiat Money and Credit into existence ($Trillions in recent years—including The Fed’s $4 Trillion Balance Sheet!) well in excess of any increase in Global Production of Goods and Services, thus diminishing Fiat Currencies‘ Purchasing Power. This Policy is why the Purchasing Power of the U.S. Dollar (Federal Reserve Note) has declined by over 95% since The Fed was founded in 1913.

Another Key point is that this Fiat Currency Creation out of Thin Air continues to increase at an accelerating rate and thus is a sure Precursor to Price Inflation (see Note 1). Even Money of Zero Maturity (MZM) has increased 10-fold since 1980.

Indeed, the Central Banks are now engaged in “currency wars” to competitively devalue (i.e., reduce the Purchasing Power of) their currencies.

Thus Gold and Silver Prices should reflect this Monetary Inflation, and indeed they have in certain periods. But owning Gold and Silver is challenging.

That is because the prices of the aforementioned Precious Metals and other commodities, as well as Equities, are periodically the victims of Interventional Action by a Fed-led Cartel (see Note 2) of Central Bankers and their Allies and Agents.

Regarding Gold and Silver, the ongoing (for years) Interventions are Price Suppressive, and designed to maintain the value of their Fiat Currencies and Treasury Securities and to discourage Investors from owning Real Money—Gold and Silver! Precious Metals Price Suppressive Actions are typically undertaken surreptitiously (see gata.org). But other Interventions are conducted quite publicly. Interest Rate Adjustments are the most publicly visible. The December 2015 Fed Rate increase is one example. Less visible, but not less potent, are the nearly daily Repurchase Agreement (Repo) injections (by The Fed, via their Primary Dealers), used, inter alia, to manipulate the levels of the Equities Markets.

Dr. Bob McHugh notes one.

The Bottom Line from Today’s Action:

Suddenly Bonds are up, the U.S. Dollar is down sharply, Gold and Mining Stocks are up sharply. This is evidence that the Fed is pumping money into the economy, surreptitiously. It means they do not like the action of the stock market. But they have to hide this latest liquidity infusion as it would be too embarrassing to them after just announcing a tightening with the December interest rate increase. It is the typical response by Central banks to deflationary forces that in their opinion have gone too far.

Dr. Robert McHugh, 02/04/2016

And former Assistant Secretary of the Treasury, Paul Craig Roberts, has amassed considerable evidence that The Fed has/is supported/ing the Bond Market by making surreptitious purchases through Belgium.

Clearly Gold and Silver Prices were and still are subject to capping attempts, as they seem to have been nearly every time negative economic data or market developments are revealed.

However, the Cartel is finding it increasingly difficult to successfully and sustainably cap paper prices because of huge drawdown of available bullion, bullion which is increasingly being shipped to China (e.g., recent 360% increase year over year), Russia and India.

Indeed, the Comex recently reported that there were over five hundred long contracts for Gold for every Physical Ounce in inventory. Thus, Change is a ‘coming to the Precious Metals Markets. See Deepcaster’s Forecasts for Timing.

The Key insight which we garner, again, from these and many similar observations is that it is essential to consider the Interventionals as well as the Fundamentals and Technicals when making a Market Forecast or Buy or Sell Recommendation.

Thus, for example, the price of Gold and Silver on any given day may not reflect anything near their Ultimate Value. See Deepcaster‘s March, 2012 Article “Profit, Protection Despite Cartel Intervention” in the ‘Articles by Deepcaster’ Cache at www.deepcaster.com.

Importantly, this fact of Ongoing Intervention and the Equities and Credit Bubbles credited by Fed ZIRP policy are two major reasons a mere “Buy and Hold” strategy increasingly fails, especially as far as Equities are concerned. A Holder of the S&P through the last decade would have lost substantial value when Real Inflation is considered, and will likely lose more as Fiat Money Printing intensifies. And it Surely will.

“QE to Infinity is set in cement in the ‘European Stabilization Mechanism Treaty‘. This is the new European Union and the euro. It will be in place and operative by July of 2012.

“The European Stability Mechanism (ESM) is a permanent rescue funding programme to succeed the temporary European Financial Stability Facility and European Financial Stabilisation Mechanism in the 17-member Eurozone. The ESM is due to be launched as soon as Member States representing 90% of the capital commitments have ratified it, which is expected in July 2012.”

Jim Sinclair, Mineset, 04/19/2012

Consider

“Taxpayers are paying billions of dollars for a swindle pulled off by the world’s biggest banks, using a form of derivative called interest-rate swaps; and the Federal Deposit Insurance Corporation has now joined a chorus of litigants suing over it….

“Derivatives . . . have turned into a windfall for banks and a nightmare for taxpayers…. While banks are still collecting fixed rates of 3 to 6 percent, they are now regularly paying public entities as little as a tenth of one percent on the outstanding bonds, with rates expected to remain low in the future. Over the life of the deals, banks are now projected to collect billions more than they pay state and local governments – an outcome which amounts to a second bailout for banks, this one paid directly out of state and local budgets.

“It is not just that local governments, universities and pension funds made a bad bet on these swaps. The game itself was rigged,…

“On March 14, 2014, the FDIC filed suit for LIBOR-rigging against sixteen of the world’s largest banks – including the three largest US banks (JPMorgan Chase, Bank of America, and Citigroup), the three largest UK banks, the largest German bank, the largest Japanese bank, and several of the largest Swiss banks. Bill Black, professor of law and economics and a former bank fraud investigator, calls them “the largest cartel in world history, by at least three and probably four orders of magnitude.”

“IBOR (the London Interbank Offering Rate) is the benchmark rate by which banks themselves can borrow. It is a crucial rate involved in hundreds of trillions of dollars in derivative trades, and it is set by these sixteen megabanks privately and in secret….

“The rate-rigging banks have been caught red-handed, but the greater manipulation of interest rates was done by the Federal Reserve itself. The Fed aggressively drove down interest rates to save the big banks and spur economic recovery after the financial collapse. In the fall of 2008, it dropped the prime rate (the rate at which banks borrow from each other) nearly to zero.

“This gross manipulation of interest rates was a giant windfall for the major derivative banks. Indeed, the Fed has been called a tool of the global banking cartel….

“Bill Black concurs, stating, ‘Our system is completely rotten. All of the largest banks are involved—eagerly engaged in this fraud for years, covering it up.’”…

“The Global Banking Game Is Rigged, and the FDIC Is Suing,” Ellen Brown, via lemetropolecafe.com, April 13, 2014

Quite apart from the illicit Wealth Transfers exposed in the foregoing, one important Takeaway is that there is now yet another Great Bubble, a Credit/Debt Bubble, a Bubble destined to loudly Pop with Seriously Negative Consequences for Citizens around the world.

And Ellen Brown also eloquently described the profitable consequences of the ESM bailout coup for private mega banks, some of which are shareholders of The private, for-profit Fed!

“The Goldman Sachs coup that failed in America has nearly succeeded in Europe—a permanent, irrevocable, unchallengeable bailout for the banks underwritten by the taxpayers”

“The European Stabilization Mechanism, or How the Goldman Vampire Squid Just Captured Europe,” Ellen Brown, webofdebt.com/articles, 04/18/2012, via LeMetropoleCafe.com

The Cartel’s motivation for ongoing takedown attempts of Gold, Silver, and other Tangible Assets is clear: they do not want the further legitimization of Gold & Silver (or Tangible Assets in general, for that matter) as Measures and Stores of Value (i.e. Real Money) to compete with their Treasury Securities and Fiat Currencies.

As long as the private-for-profit United States Federal Reserve and ECB continue to profligately expand the supply of money and credit, we will see continuing debasement of the U.S. Dollar and Euro in Purchasing Power Terms and this virtually guarantees eventual Price Inflation and another Bubble, a Financial Assets Bubble which caused Billionaire Carl Icahn to correctly call the current (3/1/2014) levels of Stock Prices a “Mirage.” Thus much of the Financial Asset, in terms of U.S. Dollars, which we have seen in recent years, is really only dollar depreciation. Indeed, the U.S. Dollar has depreciated over 30% between January, 2002 and July, 2008, for example.

Specifically, for example, measured (as of May 1, 2006, just to pick a salient date) against Gold or even other currencies, the ostensible appreciation of financial assets from March 2009 through the top in 2015 is arguably only a delusion. That is, it is arguably only an artifact of the Fed's profligate printing of paper money and increase of credit — enabling an unhealthy “borrowed liquidity” as opposed to a healthy “earned liquidity” (e.g. savings) to use the late Dr. Kurt Richebacher‘s (R.I.P.) superb distinction. Given this Reality, the ostensible appreciation reflects only the Increasing depreciation of the Purchasing Power of the U.S. Dollar. That is we have Prices Inflation which The Cartel and its Media Allies and Agents try to hide from us.

John Brimelow, a savvy long-time observer of Markets writes,

“Bloomberg, which in JBGJ‘s informed opinion is exceptionally top-down directed on an ideological basis even by American mainstream Media standards, has apparently been mobilized to counteract inflation fears: CPI Conspiracy Theories Fail to Die with Banana-to-Haircut Check. The invocation of the ‘Conspiracy Theory’ concept in the context of 21st Century America polemics is the most extreme form of antithematization. “Excommunication if this severity suggests alarming inflation data at least at the anecdotal level is looming.”

JBGJ LLC, 04/18/2012

In the long run, Deepcaster believes one can find no better “Safe Haven” and Measure and Store of Value than in the Precious Monetary Metals, Gold and Silver, and selected other Tangible Assets, like basis Foodstuffs, interests in Food Producers and Distributors and Crude Oil.

BUT, we must reiterate that one essential Caveat regarding finding a “Safe Haven” and Measure and Store of Value in Precious Monetary Metals: in the short run they are still subject to the considerable Price Manipulation/Suppression Attempts by The Cartel of Central Bankers (Note 2).

[Indeed, as long as The Cartel is in a very active interventional mode (e.g. as in taking down the price of Gold and Silver periodically) one should not be lured into thinking that the periodic up spikes in the prices of Gold and Silver necessarily present a "breakout" or a buying opportunity. As a practical matter, technical breakouts are sometimes a lure designed to suck in more "longs" prior to a subsequent deeper Takedown. Consider the parabolic spike up in both Gold and Silver prices in the hours before the Massive February 29, 2012 Takedown began.]

However, there is increasingly reason for optimism. The Cartel‘s ability to implement and sustain Takedowns has been considerably weakened recently largely because of increasing demand for Delivery of Physical Gold and Silver (as opposed to “paper,” e.g., Certain Precious Metal ETF shares).

Moreover, Major Central Banks have begun to be Acquirers of Physical, and China has become (and India is) a Major net importer.

Therefore, it is essential to study the Fundamentals and Technicals even though the Interventionals can temporarily override the Fundamentals and Technicals. One must study the Fundamentals not only for all the usual reasons but also because Fundamentals somewhat constrain the timing and effectiveness of Interventions by The Cartel.

Similarly, one should study the Technicals for all the usual reasons and, in addition, because it is in The Cartel‘s interest to make its actions seem technically plausible in order to continue to “run mainly under the radar.” It is not in The Cartel‘s interest to make its Interventions any more visible than they already are. Indeed, there is Powerful evidence that The Cartel often uses and/or helps create technical patterns (aka “Painting the Charts”) which lure certain investors (such as hard asset investors) into getting “off sides” before Cartel actions such as taking down the price of Gold or Silver.

So the question is, in the next round, will The Cartel price suppressors win out when it comes to Precious Metals and other Tangible Assets prices, or will increasingly Bullish fundamentals propel them further up? Deepcaster provides his most recent Forecasts in his latest Letter and Alerts posted at www.deepcaster.com.

Whatever the answer, the mounting evidence is that the Fed-led Cartel is knowingly creating conditions designed to force the U.S (and, indeed, the entire industrialized world), to eventually choose between a Hyperinflationary Depression and the Cartel‘s ominous “End Game,” which Deepcaster has described in its Alert of 8/13/07 “Massive Financial-Geopolitical Scheme Not Reported by Big Media” and June, 2007 Letter “Profiting From the Push to Denationalize Currencies and Deconstruct Nations” all and 9/23/10 Article “Gold-Freedom versus The Cartel ‘End-Game’ & A Strategy for Surmounting It” available at www.deepcaster.com.

As Jim Rogers and David Stockman point out, Fed Policy is impelling us to such a Climax.

In addition to acquiring Gold and Silver, another way of surmounting the Hyperinflationary Effect of ongoing Fed and ECB QE is to Invest in High Yield stocks such as those listed in Deepcaster‘s High Yield Portfolio with selections aimed at achieving Total Return (Gain plus Yield) in excess of Real Inflation (8.36% as of January, 2016 in the U.S. See Note 1)

In sum, consider the following key components of Deepcaster‘s prescription for achieving Real long-term Gains and Wealth Protection. However, regarding the following it is essential to consider Timing of investment in the Assets mentioned below. For example, Economic Conditions—e.g., slowing Economies and oversupply in some Commodity Sectors—coupled with Cartel Price Suppression in Certain Sectors has led to the recent years-long Commodities Downtrend.

And now Equities Prices are Falling. Extraordinary Profit opportunities result from shorting certain Sectors at the Right Time. In 2008, for example, Deepcaster recommended his Subscribers invest in 5 developed Short ETFs all of which were liquidated quite profitably. Successful Investors must be just as willing to go “short” as to invest long because “Buy and Hold rarely works anymore.”

So stay tuned for our Letters and Alerts and consider the following in light of the foregoing caveats.

1. Locating one‘s capital primarily in Tangible Assets which are in great and relatively inelastic demand, including in

2. The Agricultural Commodities, Production and Distribution Sector (which by the way, have generally begun to uptrend in late February, 2014), and in the

3. Precious Monetary Metals (e.g., Gold and Silver) but, preferably when acquired near the interim bottoms of Cartel-generated Takedowns. Timing and Selection here are key. For further details see Deepcaster‘s 12/23/07 Alert entitled “A Strategy for Profiting From Cartel Intervention in Gold, Silver, Crude, & Other Tangible Assets Markets” at www.deepcaster.com.

4. Stay informed, daily, as much as possible, regarding “The Interventionals” as well as the Fundamentals and Technicals.

5. Know the Real News and Real Statistics. Do not rely on often-spun MSM “News” and Bogus Official Data.

6. Monitor the Value of the $US, since it is the Advent of Major Climacterics.

Ultimately, the authentic stores and measures of value are Gold and Silver and other key Tangible Assets, not paper Fiat Currencies and Treasury Securities. But with the Interveners extremely active it behooves investors to regularly attend to the Interventionals as one acquires, and disposes of, and reacquires Key Tangible Assets.

Deutsche Bank assures us that the Worst is yet to come

“The worst may be yet to come in the global financial crisis as the central bank spending that kept defaults low runs out, according to Deutsche Bank AG.

Credit-default swap prices imply that four or more European nations may suffer so-called credit events such as having to restructure their debt, strategists led by Jim Reid and Nick Burns said in a note. The Markit iTraxx SovX Western Europe Index of contracts on 15 governments including Spain and Italy jumped 26 percent in the past month as the region‘s crisis flared up.

“’If these implied defaults come vaguely close to being realized then the next five years of corporate and financial defaults could easily be worse than the last five relatively calm years,’ the analysts in London said.

“Much may eventually depend on how much money-printing can be tolerated as we are very close to being maxed out fiscally.”

“Deutsche Bank: Worst of Global Crisis Yet to Come as Rescue Cash Runs Out,” Bloomberg, 04/18/2012

That analysis, written nearly four years ago, is even more strongly applicable today.

Be Prepared!

Best regards,

Deepcaster

February 5, 2016

Note 1: *Shadowstats.com calculates Key Statistics the way they were calculated in the 1980s and 1990s before Official Data Manipulation began in earnest. Consider

Bogus Official Numbers vs. Real Numbers (per Shadowstats.com)

Annual U.S. Consumer Price Inflation reported January 21, 2016
0.73%     /    8.36%

U.S. Unemployment reported January 8, 2016
5.1%     /    22.9%

U.S. GDP Annual Growth/Decline reported January 29, 2015
1.80%        /     -1.72%

U.S. M3 reported January 29, 2016 (Month of December, Y.O.Y.)
No Official Report     /     3.09% (i.e., total M3 Now at $17.052 Trillion!)

“Only new-home sales data showed positive monthly results. Yet, with that series at 65% below its pre-recession highs, and with headline monthly and annual gains well shy of approaching statistical significance.”

“Durable Goods Orders in Downturn,” Commentary Number 603

www.shadowstats.com, John Williams, 02/27/2014

Note 2: 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 3: Our attention to Key Timing Signals has facilitated Recommendations which have performed well lately. Consider our most recent:

•                     90% Profit on Short Small Cap Equities ETF on January 20, 2016 (i.e., about 30% Annualized)

•                     75% Profit on Short Small Cap Equities ETF on January 15, 2016 (i.e., about 25% Annualized)

•                     28% Profit on a Long Treasury Bond Treasury Bond Position on January 12, 2016 after just 71 days (i.e., about 140% Annualized)

•                     45% Profit on Long Treasury Bond Treasury Bond Position on October 1, 2015 after just 22 days (i.e., about 775% Annualized)

•                     265% Profit on Short NASDAQ Position on September 29, 2015 after just 57 days (i.e., about 1690% Annualized)

•                     110% Profit on Short Russell 2000 Position on August 21, 2015 after just 3 days (i.e., about 13500% Annualized)

•                     65% Profit on Short Russell 2000 Position on August 20, 2015 after just 2 days (i.e., about 12000% Annualized)

•                     40% Profit on Short a Retail Sector ETF Position on August 7, 2015 after just 4 days (i.e., about 3630% Annualized)