Interesting article about junior mining shares
Global Deflation
Hide Details
FROM:
Mining Speculator
TO:
Friday June 22nd, 2012 - Denver, CO
Global Deflation
This is Greg McCoach with a Mining Speculator Hotline for Friday June 22, 2012.
Inside this Hotline:
Market Update
Administrative Note
Market Update
Our junior mining share market has been hit to the downside yet again; this time by the implacable forces of global deflation. This has the Fed and other central banks in an absolute panic as markets worldwide begin to react to the further decreases in asset values such as stocks, commodities, and real estate.
Richard Russell weighed in on this topic after Bernanke’s speech on Thursday when he said:
This is really the primary bear trend that I've been writing about. It's the result of a fundamental change in the world markets. Suddenly, within the space of a few years, Asia has entered the global economy. The world is now producing far more goods (and more competitively) than ever before. I think deep in his heart, Bernanke knows and understands this. As a result, he does not want to use all the possible anti-deflation ammunition that the Fed can muster. The reason -- it is dawning on Bernanke that the Fed cannot defeat the powers of deflation and the primary bear trend.
The result is that the sinking economy is actually producing signals ahead of the Fed, and Bernanke knows it, but cannot talk about it - it's too frightening. Now Bernanke is playing for time. He's hoping that somehow, some way, the US economy will not get worse and that it might even improve slightly.
Bernanke is worrying about the Fed's bulging balance sheet. It's so huge, how will he ever contract it?
In the meantime, the stock market is more puzzled than ever. With uncertainty looming large, the market backs off. It is giving up on QE3. In the absence of QE3 the market does what it always does to protect itself -- it backs off.
Deflation brings terror to the banksters because they know the system can’t handle it, thus the comments from Ben (The Liar) Bernanke over the years that they will drop money out of helicopters if needed to avoid such a scenario. But that failed thinking developed because the Fed actually thought they could control things with the wand of their superior intelligence (NOT!). In reality, 10 years from now when we can look back in retrospect, the likes of Alan Greenspan, Ben Bernanke and their worldwide central bank Keynesian counterparts of the last 40 years will be so despised by the public they will be running for their lives.
They are finding out right now that they can’t control things as they would have everyone believe. The “CONSEQUENCES EVENT” that is now hanging over the global financial system is simply too big for anyone to deal with. This unprecedented event in world history will cause currencies and governments to collapse. It is going to cause terrible problems worldwide. No country will be untouched.
Ultimately what they will now have to do, as they come face to face with the consequences they created, is hyper-inflate to infinity in one last desperate act of insanity. This fiat currency/central bank nightmarish playbook has been run many times before throughout history, and the end result is always the same -- inflationary panic and disaster.
And those are just the Fed’s problems.
The crisis in Europe and its associated derivative liability is now clearly beyond anything anyone could have imagined. With the Fed issues and the debt problems in the United States, Europe is beginning to realize it is on its own. It there is such a thing as a European solution, which I highly doubt, it will have to come from within Europe itself.
Several hedge fund managers I recently spoke with at conferences I attended in Geneva and Zurich, Switzerland are absolutely appalled by what they see in Europe. One very prominent gentleman gave his opinion that he saw 0% chance of the Euro-Zone surviving. He said the world leaders are walking around this gigantic pink elephant in the room, and they are all pretending it doesn’t exist. Why do we give them respect with the term “leaders” when all they really are is a bunch of power-seeking jackals looking after their own interests?
What the world really needs are some true leaders with real principals, not these liar, chameleon-like political types parading around as bloated parasites. A true leader would have to stand up against the banksters with the support of the people, but alas that can’t happen because 80% of the people don’t even know who the real enemies are and what a true leader would look like.
So it looks like things are going to get much worse. Expect anyone with the ability to create money out of thin air to do so with reckless abandon as one consequence after another must be dealt with. This will be the moment for the physical precious metals and the quality junior mining shares. The biggest gains in our sector are still in front of us, not behind us. Those gains will be for those who had the stamina to hang tough when everything inside screams to let go. For now it looks like our share prices could recede even further from where they currently trade, but they will begin to rebound once QE3 or whatever they call it shows up with a vengeance.
Unfortunately the world is going to be in a real pickle for quite some time as things get sorted out, thus my ranting about preparedness. As the saying goes, only the strong survive, and the strong will be holders of the precious metals and quality mining shares, along with items that can help you survive difficult and tumultuous times.
Administrative Note
I will have company updates for all the recommended companies in the Mining Speculator and Insider Alert sometime late next week. With our market in such tough straits at the moment and possibly getting worse, I would keep your powder dry (hold your cash) until we see a bottom in our market, which I am hoping comes in late July or early August.
This means that all recommendations are on a HOLD basis until further notice. This latest turn of events with the deflationary pressures is yet another sign we are getting close to the endgame of central bank stealing and Keynesian economic stupidity. Our generation, like so many generations of the past, will have to learn the hard way by the things we must now suffer.
Thomas Jefferson once suggested we should have a revolution every 20 years just to make sure the bankster and political beast didn’t grow too large and destroy the people. Too bad we didn’t listen -- the world would be a much better place.
Don't have a brokerage account? Looking for a better one? We recommend TD Ameritrade.
Mining Speculator
Mining Speculator, Copyright © 2012, Angel Publishing, LLC., 1012 Morton Street, Baltimore, MD 21201. For Customer Service, please call (877) 303-4529. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Angel Publishing and Mining Speculator does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.
