by DeepCaster LLC, deepcaster.com
August 1, 2008
http://www.financialsense.com/fsu/editorials/deepcaster/2008/0801.html
The banks have begun falling, first Bear Stearns, then IndyMac, and Heritage... The Climacteric we forecast has begun.
The Threat of Systemic Collapse about which Deepcaster (and, increasingly, others) has written is also increasing.
First, in order to stave off the day or month or year of Reckoning (which, we reiterate, is coming mainly as a consequence of their dramatic monetary inflation and “easy credit” policies), the Fed-led Central Bankers Cartel* has created, and for the past several years has operated, an extraordinary “financial regime” built on increasing trillions of dollars (nearly $600 trillion as of December, 2007 - - see www.bis.org (path: statistics>derivatives>Table 19 and ff.) of OTC Derivatives available for the manipulation of major markets ranging from Precious Metals to Crude Oil and Energy, to Equities and Strategic Commodities (see Deepcaster’s July, 2008 Letter).
Second, The Cartel has developed a nefarious “End Game” plan which we describe below.
A most compelling conclusion from the foregoing is that The Cartel expects (and likely are even pushing) the U.S. Dollar to go into further and further decline, over the medium term, and to continue their other policies, until there is a “No-Salvation, No-Return Systemic Crisis.” (Very short-term, Deepcaster has earlier forecast the U.S. Dollar to “bounce” in the 3rd quarter of 2008 - - but that does not affect the fact that the primary long-term trend for the U.S. Dollar is down.)
That the U.S. economy (about 25% of the international economy) is headed in the direction of Serious Stagflation (a Kondratieff Winter) is pretty clear from the very credible shadowstats.com statistics. According to shadowstats, Real Consumer Price Inflation is running at nearly 12% a year, U.S. Unemployment at 14% a year and, the Money Supply Growth (M3) is increasing at nearly 16% a year or a doubling time of nearly 5 years, as we commented above.
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