So far this week we saw Wachovia get socked for an $8.86 billion loss with a layoff announcement of 10,750 employees, while Washington Mutual got hammered for a $3.3 billion loss and increased its beleaguered loan-loss reserves by $3.74 billion to $8.46 billion as it announced expense cuts and asset sales.  This is nothing.  This is just the beginning.  This is just window dressing to protect incumbents.  Together with the science fiction and fantasy we got last week from the banking sector, these latest financial statements from the banking sector should receive a Nebula Award from the Science Fiction and Fantasy Writers of America. Gene Roddenberry could not have dreamt up financial statements that were more phantasmagoric.

All these bank losses, as terrible as they are even in their understated amounts, are pathological accounting lies aimed at keeping the sheople from going ballistic on the incumbent scum-bags in Congress so that these corrupt reprobates and sociopaths can continue in office and maintain their rape, pillage and slaughter of the sheople of the US unabated on behalf of their evil, malevolent and rapacious Illuminist masters.

The stock markets, the bond markets, the derivative markets and the entire financial system would collapse if people knew the real truth about the balance sheets, income statements and debt-to-equity ratios of virtually all the major commercial and investment banking fraudsters of Wall Street.  So the devastating truth will be withheld most likely until the final quarter which ends in December, because a good portion of the earnings results for the third quarter are going to be announced prior to the US general elections which would normally be held in early November, barring some false-flag attack.  Until then, the huge whitewash reservoir behind the “creative accounting” dam will be sucked dry.  We’re not sure if there is enough whitewash left on the planet to cover up the losses for Q3, however.

Wait until the Pick-and-Pay loans all run their course.  Ugly does not even begin to describe what is going to happen to many large banks when this jumbo variety of toxic waste comes home to roost on their financial statements.  We doubt that the FDIC has enough funds to cover even the first ten to twenty banks that fail out the many hundreds that are expected, especially if a large bank like Wachovia goes under in the early going.  Already, IndyMac has wiped out 10% of the FDIC’s reserves. Depending on how the IndyMac liquidation goes, that percentage could go higher. And remember, IndyMac was not even on the FDIC’s watch list.  If that doesn’t scare you, nothing will.

What will happen if the FDIC runs out of money?  Will they get a big government bailout like the rest of the fraudsters?  Of course not.  That would benefit the banks’ customers instead of the banks themselves.  We certainly could not have that now, could we?  Will the FDIC bailout money come from the source it is supposed to come from, meaning from the fraudsters themselves, most of which are now insolvent and bankrupt?  It’s a stupid question, of course, but we had to ask it for rhetorical purposes.

What is the real reason behind all these gargantuan bailouts for the fraudster banks and GSE’s?  We’ll tell you what this about.  This is about saving the dollar from sudden collapse, stopping the many trillions of dollars held by foreigners from returning to our shores and creating hyperinflation reminiscent of the Weimar Republic, and simultaneously violating all sense of moral hazard by saving the fraudsters at our expense while keeping their cost of funds low in light of the fact that the fractional reserve banking multiplier has collapsed due to the rampant fraud, lack of regulation and lack of transparency that has frozen credit markets.  That is what this is really all about.  The ultimate goal is to consolidate more power into the hands of a few by moving the US inexorably closer to a corporatist, fascist state, but the devastation they intended to wreak on everyone else is now coming back on them and they are trying to save the system, and themselves in the process, so that there is something left to consolidate when the dust settles.  We believe that the Illuminati have destroyed themselves, and their “Chaos” henchmen, in the process of destroying us, and that their bid for a corporatist, fascist state will ultimately fail.  Only their gold and silver failsafe hoards will rescue the head Illuminists from financial ruin and even bankruptcy. They really blew it this time.  Their diabolical plans have been pushed back by half a century.

The Fed, the cartel and their Illuminist masters are trying to have their cake and eat it too.  Of course, this is pure foolishness and it will not work, but they are going to try it anyway.  They want to keep interest rates low for the fraudsters so they can make money on spreads from investments with higher yields in a futile attempt to save their balance sheets, but low rates are what drive inflation, speculation, improper allocations of capital and over-leveraged investments while simultaneously pushing money out of dollar-denominated bonds and treasuries into real assets such as commodities and real estate due to artificially low, even negative, rates of return in light of increasing risk and inflation.  So they are saving the banks and destroying the economy, and the destruction of the economy will ultimately in turn destroy the banks anyway, and in more spectacular fashion to boot.  The delay game they are playing only delays the inevitable, which is their complete and utter destruction.

The elitists want the bailouts to come at our expense because there is no other source remaining except from the big Illuminist players themselves, such as the Rockefellers, the Rothschilds and the Black Nobility of Europe, from their individually-owned and/or controlled assets, especially considering that their henchmen have mostly gone bust.  Even the Fed looks like it may go under because the economy will collapse before they can create and monetize enough treasuries to absorb all the toxic waste collateral by exchanging it for treasury and agency paper.  The only remaining alternative is the saving of the dollar as the world’s reserve currency, the elitists’ collective, comprehensive, corporate failure and the purging of the system.  Of course, since the elitists and their transnational conglomerates are the ones who stand to get purged, that is not an acceptable alternative to them.  However, for us peons, it is the only sensible, though painful, alternative.  We doubt that the dollar can still be saved as the world’s reserve currency, but it’s still worth a try since success could make recovery much faster and easier.  We either take the path to purge the system, or we ourselves will be purged by the Illuminati, albeit not to the extent that they had hoped due to their inept bungling of just about everything.  NO MORE BAILOUTS USING TAXPAYER FUNDS!!!

We told you the key to analysis is the bond market, and the government bailouts are all aimed at saving all segments of the bond market, which includes treasuries, because it is the source of elitist power.  Only the suppression of gold and silver has an equal priority at this point, but that priority will eventually be abandoned in favor of delaying the destruction of the bond markets when it is no longer feasible to save the bond market while simultaneously suppressing precious metals.

The elitists want to save the bond market because that is where all the excess dollars are parked overseas, and the return of these parked dollars to our shores could put us in the Mugabe Million Percent Club when it comes to hyperstagflation.  They want you to bail out Fannie and Freddie GSE bonds worth many hundreds of billions of dollars that have been acquired by Japan, China, Russia, the Middle East (through British banks as proxies), the European Union nations and India with the same money these greedy nations have stolen or extorted from you using manipulated, artificially low domestic currencies to boost exports, uncompetitive, artificially high cartel oil prices to make ludicrous profits, as well as monies ransacked from us through use of globalization, free trade, off-shoring, outsourcing and both legal and illegal immigration, which incidentally have been used by the elitists to gut our economy, especially our manufacturing sector, in order to weaken us into accepting a one world government.  These nations have therefore acted as willing henchman for the Illuminati to bring America to its knees.

And the same holds true for the Fed’s forced, taxpayer-sponsored, $500 billion per month provision of money and credit through various facilities to bail out banks and their holdings of other non-GSE real estate bonds and derivatives, as well as other types of asset-backed bonds and derivatives and municipal bonds, which foreigners also own in the hundreds of billions.  These bonds and derivatives were acquired by these same foreign nations using the same funds obtained by the same nefarious methods of beggaring the US public as were used to acquire the GSE bonds, all so that the elitists could control us, and so that the Black Nobility of Europe could turn us into their feudal serfs once again.  If the fraudsters fail, that means liquidation, and liquidation means forced sales, which would lead to abysmal prices for these bonds and derivatives.

And then there is the counter-party risk and liability on credit default swaps and interest rate swaps, which will soon become a quadrillion dollar market, that would be in jeopardy if the Fed did not bail out the Wall Street bankster fraudsters, who are counter-parties on these swaps.  The other end of these swaps, to the tune of trillions of dollars in notional principal, are also owned by these same foreign nations who collectively turned the US into the greatest debtor nation of all time when only a few decades ago it was the greatest creditor nation of all time.

The crux of the matter is that the Illuminists know that if they cannot convince the US public to bail out these various bonds and derivatives and their various owners and counter-parties, the system will collapse and all those trillions in treasuries hanging around in the forex reserves of these nations will come back to roost with a vengeance as foreigners stampede to unload their treasuries and their remaining toxic waste in exchange for commodities and other tangible assets before they become worthless and/or to force the Illuminists to lobby for a public bailout of the tanking asset-backed bonds and derivatives under threat of a treasury boycott or hyperinflation-inducing treasury flood back to the US.  That is their greatest fear, because such an event would destroy them and their precious system, especially the bond market, which is the main source of their power, a fact which we cannot overemphasize.  They are trying to manage the dollar down gradually by use of a beggar-thy-neighbor policy, and the failure to win these public bailouts would collapse the system and take them all down with it before they have a chance to bail out of stocks, bonds and other paper assets through the dark pools of liquidity known as Project Turquoise and Baikal and into commodities and other tangible assets.

Bob Chapman is the editor of International Forecaster: http://www.theinternationalforecaster.com/

Share on digg

As quoted from the Washington Times:

“You’ve heard of mental depression; this is a mental recession,” Gramm told the Times. He noted that growth has held up at about 1 percent despite all the publicity over losing jobs to India, China, illegal immigration, housing and credit problems and record oil prices. “We may have a recession; we haven’t had one yet.

“We have sort of become a nation of whiners,” Gramm said. “You just hear this constant whining, complaining about a loss of competitiveness, America in decline” despite a major export boom that is the primary reason that growth continues in the economy, he said.

“We’ve never been more dominant; we’ve never had more natural advantages than we have today,” he said. “We have benefited greatly” from the globalization of the economy in the last 30 years.

These quotes from former Senator Gramm, who is one of the most corrupt personalities of Washington politics and who we can only describe as the penultimate example of both a reprobate and a sociopath, will go down as the most false, crass and callous remarks in the history of American politics. This may well have cost Dumbo Presidential candidate, John McCain, who Gramm advises on economic matters, the presidential election this November. We are left stunned and speechless at the unmitigated arrogance and gall of this miscreant. Under what rock, we ask, did the elitists ever find this ball of slime and detritus?

Now mind you that this is the man who helped push through The Financial Modernization Act of 1999, also known as the “Gramm-Leach-Bliley Act,” which effectively repealed the Glass-Steagall Act which was passed during the Depression Era as a measure intended to avoid a repeat of the 1929 Stock Market Crash. The Glass-Steagall Act prohibited a bank from offering investment, commercial banking and insurance services, or from consolidating with other companies providing such services. The ill-advised, spurious and egregious repeal of the Glass-Steagall Act is the single most important factor driving the subprime and credit-crunch debacles because it allowed rampant fraud and outrageous conflicts of interest to develop between different financial sectors, resulting in a complete breakdown of confidence and trust in our system of finance which has been destroyed right before your eyes. “Gramm’s Blunder” and “Greenspan’s Folly” together have powered the fraud and deceit that made the subprime debacle possible. The passage of the Gramm-Leach-Bliley Act, more than any other causal factor, destroyed the due diligence and integrity of the entire financial sector, and paved the way for rampant and outrageous fraud by dismantling the usual system of checks and balances.

And then there was the Commodity Futures Modernization Act which reprobate Gramm snuck through on an unsuspecting and uncomprehending Congress in the year 2000. This piece of work allowed the so-called Enron loophole which is currently being exploited by insolvent banks and other large financial institutions to speculate in oil futures. This speculation is now driving oil prices into the ozone so that these insolvent Illuminist banksters can save their balance sheets while what is left of our hapless economy is destroyed in the process, a process that will ultimately destroy the world economy as well. The Enron debacle was engendered by this legislation and has cost taxpayers and shareholders billions. Mr. Gramm and his wife, Wendy, a former CFTC Chairwoman who later served on Enron’s board of directors, were involved in the infamous Enron scandal up to their eyebrows. They are the ones who should have been on trial by the US government.

Even more toxic and mega-destructive than the Enron loophole is this act’s deregulation of credit default swaps, which are essentially insurance policies against bond losses. Normally insurance products are regulated by the states, and this act keeps both the states and federal regulatory agencies such as the SEC and CFTC out of this arena. These swaps are what powered the subprime debacle by providing insurance to cover what might otherwise have proven to be risky investments and such insurance was used to justify the bogus AAA ratings, which lured in the unsuspecting sucker-dupes. The notional value of these swaps is in the tens of trillions of dollars and they are currently imploding as failing subprime borrowers, banks and business corporations default on their debts, adding to our current financial woes in spectacular fashion. Mr. Gramm now works for Illuminist bank UBS, which has become the biggest victim of this toxic legislation. No matter, performance is not an issue if you are an Illuminist piece of scum.

Apparently, at least according to Mr. Gramm, the destruction of our economy by profligate financial policies, powered by his toxic legislation, an out-of-control Fed and the elitist free trade-globalization agenda, is all a figment of your imagination. You’re really not experiencing hyper-stagflation and runaway oil and food prices. Never mind all the silly talk about negative GDP and severe recession, which our totally truthful and infallible government statistics prove do not exist. Never mind the increasing trade deficits and lopsided balance of payments, as it is quite clear we are experiencing an export boom in our virtually nonexistent manufacturing sector. And never mind that minimum wage service job you had to take after your previous lucrative job was off-shored or given to an illegal alien for a fraction of what you were paid, as it is clear that you are now a proud participant in our dynamic service sector whose slave labor now produces 80% of our GDP. By the way, you know that seemingly real unemployment line you are standing in right now due to off-shoring and outsourcing by Illuminist transnational conglomerates, well, that is just another phantasm. So stop whining, pop another valium to drive away your thoughts of mental recession, and plug yourself into the electrodes of your Goldilocks Matrix pod. Don’t worry, and be happy that people like Mr. Gramm are in charge of your financial well-being and security. Oh, and incidentally, on that note, may we strongly suggest that you don’t take any Prozac, since you might become suicidal.

Phil Gramm and Alan Greenspan should be tarred and feathered and put on a boat that is never allowed to return to shore as “men without a country.” Mr. Gramm’s wife, Wendy, can man the oars.

The fact that John McCain uses Grimy Gramm as an economic advisor tells you everything you need to know about John McCain – none of it good.

This transpires as Benron Bernanke and Hanky Panky Paulson recommend to Congress that the Fed be given sweeping regulatory power over our entire financial sector which the Fed’s profligate and ill-advised monetary policies and Grimy Gramm’s legislation have completely and utterly destroyed, leaving nothing but burning embers which will later be poured into a funerary urn labeled: “US Financial System – R. I. P.” You just can’t make this stuff up. It is nothing short of surreal. We recoil in disgust at the shear arrogance of these slime-balls.

Well, the meltdown continues. Men of “Chaos,” better quickly get those two dark liquidity bourses, Project Turquoise and Baikal, up and running while you can still get out of the markets behind everyone’s backs -while we still have markets, that is. The Dow on Friday dropped below 11,000 before closing at 11,100.54, the lowest close since August 14, 2006, some 23 months ago. On August 14, 2006, spot gold closed at 626.60, while this Friday spot gold closed at 958.85. Dow: Zippo – Gold: +53% – GET THE PICTURE?!

When the yen was at 96.88 yen per dollar and 152.731 yen per euro on March 17, 2008, Saint Patrick’s Day, the Dow closed at 11,972.25. Now with the yen at 106.14 and 168.741, the Dow has been pile-driven down to 11,100.54, despite a vastly weaker yen and support from the PPT. What does this tell you? We’ll tell you what this tells you – GET OUT OF THE FREAKING STOCK MARKETS – NOW!!! The carry trade is no longer relevant to market support. Worse yet, as the dollar continues its descent, the yen will become ever stronger against the dollar, thus destroying both the carry trade and the stock markets.

The Night of the Living Dead, meaning dead, bankrupt and insolvent banks, will soon be upon us. Their deadly losses are going to rise up and destroy us. It’s time to flee in terror! According to Fortis, a banking, insurance, and investment company, based in Belgium, the zombies could be 6,000 strong. Try not to scream!

Well, since the recent oil takedown barely made gold and silver hiccup, probably due to profits from oil shorts and stock index puts carried by large specs as protection against the cartel’s PPT manipulations, the cartel went back to destroying the stock markets, immediately cashing in on recent point gains from the oil takedown. They do this to chase money out of stocks into bonds and money markets, which supports the dollar and bond principal while reducing bond yields and hopefully interest rates. Remember, treasuries are a large part of the bond market. Despite Friday’s crash and end-of-day PPT miracle, gold and silver went ballistic anyway, and the dollar plummeted. The cartel is fighting a losing battle as gold is preferred as a safe-haven when stock markets fall, and as a hedge when increased liquidity from the PPT and support from carry traders takes markets higher, if that is even possible now.

We love to listen to the rumors they make up to justify manipulations like the recent oil liquidations. First, we hear about the potential Iranian cooperation with Washington that was jawboned to take oil down and to suppress precious metals.

After the suppression of gold and silver mainly failed, off went the missiles and the renewed jaw-boning about the never ending story of an Israeli attack on Iran to push oil back up to save the Wall Street bankster fraudsters, who are exploiting the oil markets using Grimy Gramm’s despicable Enron loophole. They managed to set a new high for oil in the process, sending oil to $147.27 before it closed at $145.08. And never mind the stock markets, which can drop into the depths of hell for all the cartel cares. The cartel is intent on only two things, namely, the suppression of precious metals and the maintenance of the bond market’s viability. Unfortunately for the cartel, the launch of the ballistic missiles made gold go ballistic also, which had to tick them off to no end. On Friday, gold blew past $950 like it wasn’t even there and went as high as $967.85, resulting in big gains for the week just as we predicted. Silver went up big also.

By saving the bond market, the cartel is attempting to give the fraudster banks a temporary reprieve from the complete and utter destruction, which many of them will likely suffer. They want to keep the system going long enough so they can bail and leave everyone else holding the bag just like they did in 1929. Just before the Fed pulls the plug, the word will go out to the Illuminist insiders who will bail out through the dark pools of liquidity while pouring the proceeds into commodities and other hard assets, especially precious metals, of which the chiefs of the Illuminati own tens of thousands of metric tons. Their bullion hoards are kept in Swiss vaults and off-shore locations where they can’t be confiscated by angry mobs seeking revenge for the destruction of markets worldwide, or by governments looking for some easy gold to cover their losses. If there is a confiscation, the ETF’s will be first in line, while individual investors in possession of their metals will most likely be left alone, as they would not be worth the bother. You should invest in gold and silver accordingly. Don’t worry, be happy. It’s all just a bad dream like Grimy Gramm suggested. Fannie and Freddie, and the 5 trillion worth of heavily toxic-waste-type real estate loans they insure, are too big to fail, we are told. They will simply be bailed out with more equity injections and life will go on as usual in the real estate markets, which would be totally frozen in a cryogenic state without them. If you believe this latest fantasy from the cartel’s dream weavers, can we simply suggest that you are incredibly naive? These two bankrupt quasi-governmental agencies will be bailed all right, but at your expense. No one in their right mind would give either of these losers any more capital to vaporize and blow out of their anal sphincters. Whether they go into some type of resolution trust company, get bailed out by the Fed ala the Bear Stearns bailout or something like the Term Securities Lending Facility, or are absorbed directly by the government based on the inferred guaranty of bad loans becoming an actual guarantee, you the taxpayer will be screwed. Someone has to pay for all the losses, and we can assure you that unless you do something about it, that someone will not be the fraudsters who caused the losses in the first place. Any of these bailouts will result in much higher taxes, even more hyperinflation, or, most likely, both. Treasury bonds will be created and monetized out of thin air, and will take us on a historical journey to Revolutionary France, Weimar Germany and Zimbabwe. The higher taxes and monetization of bonds created out of thin air will destroy the economy and the real estate markets will lock up anyway, as real estate losses continue to mount from job losses, from frozen markets caused by double digit interest rates based on higher risk and wildly higher inflation, as well as from the drastic reduction of purchasing power as the whole system collapses. Gold and silver are the only safe-havens from the total certainty of this coming destruction. THIS DESTRUCTION IS A LOCK!!!

Bob Chapman is the editor of the International Forecaster

Share on digg

The acceleration of inflation is baked into the economic cake for, at minimum, the next 12 to 18 months worldwide. Fed jawboning won’t change that. Phony PPT dollar rallies won’t change that. Fed rate hikes won’t change that. The reduction of money and credit won’t change that. Falling oil prices won’t change that. Lies about economic statistics, and especially about inflation data, won’t change that. So, why can’t the rate of inflation be changed for the next 12 to 18 months, you might ask? The reason is because inflation is not determined by smoke and mirrors, or by gimmicks and false data. It is determined by the rate at which the total supply of money and credit is being expanded or contracted (what economists call M3), which is measured by determining how much money and credit is being fed into, or subtracted from, each nation’s financial system by its central bank over the course of a given month, as compared with the amount determined for the previous month. That figure is then annualized. Basically, the annualized rate of M3 that is determined for any nation becomes that nation’s rate of inflation (expansion) or deflation (contraction), with a delay that usually runs about 6 to 18 months.

Contrary to what the fane-stream media, pusillanimous pundits and Wall Street shills might tell you, inflation is caused by too much money and credit chasing after too few goods, and today’s oil and food crisis is now providing everyone with a textbook example of how profligate expansion of money and credit can ruin an economy in a frighteningly short period of time. The baked-in inflation rate for the US will run from its current 12.625% to as high as 18% over the next 12 to 18 months, even if the Fed totally cuts off all money and credit tomorrow and then throws rate hikes in for good measure! Our current actual (as opposed to official) rate of inflation of 12.625% is running at a lag of about one year from the time M3 had reached the 12.625% level, and that is why we see 12 to 18 more months of 12.625% to 18% inflation. We have extended our projection out to 18 months because we do not see M3 going below 12% any time soon.

If the Fed and the traitors in the White House and Congress want to see stagflation gone wild, just go ahead and let the Fed raise rates and/or contract the supply of money and credit. The baked-in inflation will then continue even as the economy goes into a thermonuclear meltdown! The Dow will lose 500 to 1000 points on each .25% rate hike as de-leveraging accelerates, margins are tightened and liquidity is drained from the system. Bond markets will be destroyed as principal plummets. The situation is now so bad that even a substantially weaker yen cannot bring enough carry trade liquidity into the system to hold up the general stock markets. It now takes 3.5 more yen to buy a dollar or a euro than it did with the Dow was just over 13,000, yet the Dow is now at just over 12,300. Part of the current stock market weakness is due to the lack of support from the PPT, which is trying to minimize the liquidity and profits available to large specs that could be used to rally metals. Hence, the need for protective derivatives.

Further, any dollar strength achieved by any such Fed rate hikes will have little impact on gold and silver because the resulting destruction of the economy will send everyone to gold and silver as the safe-haven of choice. Treasuries and money markets will still be yielding negative rates of return while the banks are getting hammered by the next round of the ongoing real estate debacle. As attention moves from the hundreds of billions of toxic waste held by banks in off-balance sheet SIV’s to the hundreds of billions in toxic waste held by banks in off-balance sheet VIE’s (Variable Interest Entities), any dollar-denominated treasuries and money markets aren’t going to cut it any more as the real estate market drops into an even deeper, darker pit, sending the various real estate derivatives, and bank balance sheets, further down into the depths of the abyss. You will then watch precious metals go up with the dollar instead of running contrary to one another, and food and energy commodities might keep going up as stocks, bonds and other paper assets continue to be shunned by traders despite the stronger dollar. Throw in bank failures, heavy toxic waste write-downs, earnings disappointments, a consumer spending crisis, a credit default swap crisis, a new false-flag attack and/or a new theatre of conflict, and only precious metals will be going up with oil as the dollar gets taken out by the ensuing recession.

Rate hikes, coupled with weaker real estate values, and thus huge declines in both bond principal value and bond collateral value, could set off a bear market in bonds that could take the whole system down even more quickly than the credit-crunch and subprime debacles combined.

Note that when the Fed was on its rate hike campaign that terminated at 5.25%, inflation continued to grow because M3 was wildly expanded during the entire rate hike campaign. That is what separates the current inflationary debacle from all other periods of inflation. During all other periods of high inflation, the cure for an overheated economy was applied by either an increase in interest rates or by a contraction in M3, or by both. The current inflationary cycle is the first period of high inflation where interest rate hikes were totally offset, and overwhelmed by, the expansion of money and credit which totally negated any slowing of the economy that might have been achieved by the rate hikes. The Fed, Wall Street and our bought-off and compromised government officials conspired to keep up the speculation that was used to power the ongoing derivatives fraud by pumping out prodigious amounts of money and credit while lying to us about inflation, which was skyrocketing as a result. That is the precise reason why the Fed’s rate hikes failed to cool the economy and to slow inflation. Instead, the derivatives fraud led to the credit-crunch, which then cooled our economy. Then, in order to attempt to save our economy, rates had to be cut back by the Fed while money and credit were expanded even further, the perfect formula for hyperinflation which you are now witnessing as we write this issue of the IF. In addition, the economy was not saved, and now inflation is getting worse as the direct outcome of the failed measures to save our economy, thus causing further and additional damage to our economy as food and energy costs skyrocket and US consumers are tapped out. That, in turn, is the perfect formula for hyperstagflation.

Note that our economy was destroyed already before the credit-crunch by free trade, globalization, off-shoring, outsourcing and both legal and illegal immigration, and now we have rampant inflation to boot. Precious metals and their related shares, professionally managed Forex accounts and Swiss franc-denominated government bonds are your only options at this point to avoid being beggared and impoverished by the Illuminati.

As mentioned above, an orgy of Wall Street fraud has brought us an economy-killing credit-crunch. That credit-crunch has forced the Fed to initiate a maniacal expansion of money and credit to keep Illuminist insider financial institutions from imploding. Much of the money and credit from that maniacal expansion is not being re-loaned because all confidence in the system has been lost due to rampant, rampaging fraud, much of which was committed by Illuminist insiders against other Illuminist insiders, proving once again that there is no honor among thieves. So where is this huge portion of all that money and credit going if it is not being re-loaned? A very large portion is being used to make substantial, speculative profits from a whole bevy of commodities, especially from crude oil and agricultural products, by virtue of a loophole provided by the depraved group of village idiots who run our country (Congress), a loophole that allows big banks to operate in the commodities markets without position limits, allowing them to run amok in those markets with privileges that are not extended to other, non-elitist players. Our government regulators always provide us with such a level playing field, don’t they? What an absolute disgrace.

Inflation is destroying the world economy as central banks around the globe pump out money and credit until it inundates everything, and the leading creator of inflation and destroyer of the world economy is the Federal Reserve, a private banking concern, a majority of which is owned by two shareholders, namely, JP Morgan Chase and Citigroup, the main fraudsters of Wall Street. Wherever you see financial chicanery, these two malfeasants are usually somewhere in the mix. Ask Enron and Bear Stearns shareholders. And now the Fed’s machinations, in cahoots with elitist banks around the world, have caused a worldwide stock market crash and have sent the world financial system into an inflationary quagmire, perhaps to pave the way for world government. You have already seen us drop from a high last year of about 14,200 on the Dow to today’s roughly 12,300, a 13%+ loss. That would have been triple or quadruple were it not for the PPT. Then there is China, whose stock market has shed 50% from its peak, India, whose markets have shed 27% from their peak, Japan, whose stock markets have been in a state of implosion for two decades and Brazil, which is about to watch its currency implode for the second time in a decade. China uses 5 times more oil per unit of GDP produced than does the US. What do you think oil prices are doing to them? So much for free trade and globalism, and so much for the hypothesis that emerging markets can carry the world financial markets while the US and other western economies in Canada and Europe go under. What you have is a worldwide disaster in the making, with food shortages, starvation, social upheaval and revolution on their way. The would-be lords of the universe have really done it this time. We expect that very few of them will survive when people find out what they have done.

Robert the Bruce stopped the British Black Nobility from imposing their draconian feudal system on Scotland in 1314 at the Battle of Bannockburn. Our Founding Fathers fought and won two wars against the perfidious British Black Nobility to keep them from imposing their mercantilism and European-style, debt-based, private fractional reserve banking system on America with victories in the Revolutionary War and the War of 1812. Now we can add Ireland, whose citizens have stopped the European Union and its free trade, globalist agenda, both supported by the British Black Nobility and the other Black Nobility of Europe, dead in their tracks with a vote against the Lisbon Treaty, which was the EU’s attempt to short circuit the common folk of Europe to establish their regional dictatorship and regional currency in preparation for a diabolical one-world government and one-world currency. Let’s hope that the citizens of the US do the same with the clandestine North American Union and the Amero. This adds to the EU’s woes as a one-interest-rate-fits-all policy continues to alienate the weaker EU members from the EU’s economic powerhouse, Germany, the vast majority of whose citizens want their old Deutsche Marks back. While that group of weaker members may include Ireland, and while Ireland has shown considerable weakness from an economic point of view lately, that weakness does not appear to extend to their political wisdom. Let’s hear it for the Irish! ERIN GO BRAGH!!!

Retail sales rose 1.0% for the month of May. Big whoop! That figure is not adjusted for the actual rate of inflation, which also just happens to be approximately 1.0% per month here in the US. That means retail sales were actually flat, with all growth attributed to price increases and not a smidgeon to an increase in the amount of goods which consumers purchased. Thus, our 160 billion-stimulus package netted a big fat goose egg. Perfect.

It is clear that oil and food are being driven up while gold and silver are being suppressed, so that when it comes time for the next precious metals rally, everything else will be hit and the dollar will be talked up. Apparently the cartel has not yet figured out that all the money from the sell-off of oil and other commodities will have to find a home somewhere, and precious metals are a very likely resting place. No one believes anything emanating from Bernanke, the Fed or our Treasury anymore. They have been dead wrong about every prediction they have made, and have lied pathologically. We will likely see rate cuts before we ever see rate hikes. The next debacle is on its way, and as soon as Ben the Bear Killer gets wind of it, he’ll drop rates faster than JP Morgan Chase took over Bear Stearns with a big, juicy taxpayer gift courtesy of the Fed. Meanwhile, we must endure the poppycock drivel that the Fed and our Treasury support a strong dollar, with M3 still over 16% and ongoing, unbridled speculation by banks in the commodities markets with easy cash and credit from the Fed, received in exchange for toxic waste collateral. Again, perfect.

Not only does the nominal price of gold and silver tell you how desperate we are financially, but the degree of manipulation should also be considered. If gold and silver are used as hedges, especially gold, then why do they go down when everything else is going up? Oil was only at 112 when gold was over 1000. Now we have 870 gold with oil at 135 and many food commodities doubling, tripling and quadrupling. Does that make any sense to anyone? If it does, then they are either a cartel insider, or they are just plain dumb. Three cheers for ETF’s and mint certificates, backed by the gold and silver of the proletariat which is now being used by the elitists to suppress precious metals by selling and leasing the very gold and silver which the duped proletariat think they own, while resource shares are ignored or naked-shorted. This transpires as bullion banks are paid to take out short-term silver leases and as specs continue to gamble in rigged casinos owned by the elitists while refusing to purchase and take possession of their gold and silver for cash. Welcome to corporatist, fascist America, where the sheople continue to confirm P. T. Barnum’s famous quote. Detach yourself from the Matrix, or get reamed.

If you think employment is bad now, wait until thousands of municipalities go bankrupt. They are the only ones making any significant contributions of good-paying jobs at this point. Their tax receipts are dropping into the tank as their bond insurers go belly up, as their ratings drop off a cliff, as their lending rates double, triple or more, and as the auction rate municipal bond market goes the way of the dodo bird, while the 330 billion owned by auction rate municipal bondholders goes up in flames since there exists no market where they can be sold, and bank’s do not intend to revive the old one. The state and local governments are about to join consumers in the big “Sorry-We’re-All-Tapped-Out” final binge party as they make appointments to have consultations with their bankruptcy attorneys. This transpires as they are forced to take over houses that have been abandoned by people who should never have owned them in the first place and as they make accommodations for the tent cities that are growing in size and number by the hour. Wonder what corporate earnings will look like when the municipal tits are shut off?

Previously our Defense Department gave a $35 billion air fleet tanker contract to EADS, which manufactures the Airbus, rather than to Boeing – a contract that should have never been written in the first place. The US doesn’t need the tankers. In that process 44,000 well paying US jobs were lost to Europeans. As it turns out the bid-awarding process was corrupt. The EADS fleet will cost American taxpayers dearly and the model is less safe than the Boeing model. Boeing could have saved taxpayers $90 billion. The EADS contract will cost us $40 billion. The aircraft is less capable. EADS is using illegal subsidies. EADS won exemptions from key national security laws. The Boeing model produces 25% less carbon dioxide, reducing greenhouse gases and offers a 24% fuel savings – a cost borne by taxpayers. Even as the contract for $40 billion is being handed over, the federal government is aggressively pursuing legal action against EADS at the WTO for getting grants and loans at unfairly favorable rates.

The key Senator John McCain (R-AZ) played a crucial role in blocking the deal to build air tankers from going to Boeing. The position fattens his campaign coffers.

The question is who arranged the payoffs and who received them?

Bob Chapman is the editor of the International Forecaster

Share on digg