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-- Posted Sunday, 11 May 2008 | Digg This Article | Source: GoldSeek.com
The following are some snippets from the most recent issue of the International Forecaster. For the full 26 page issue, please see subscription information below. US MARKETS
Gold goes up, and the stock markets come down. At the risk of sounding like Jim Nabors' character, USMC Private Gomer Pyle, we comment on this latest development by exclaiming: "Surprise, surprise, surprise! Shazam!" Yes, that severe case of yellow fever that the stock markets don't seem to be able to shake is back with a vengeance as super-yen keeps jumping out of the Japanese bankers' closets to fight against truth, justice and the American way by creating a carry trade liquidity drain to force liquidations of metals positions held mainly by large specs many of which have yet to wean themselves off of their carry trade crack addictions, although we might add that those protective derivatives we have been recommending for almost a year now must be helping. On Friday gold went on a rampage, got slammed by the cartel and then slammed the cartel back. Gold rocketed $20 per ounce from Thursday's close of $869.60 to reach as high as $889.50, which gave the cartel a collective myocardial infarction, so the cartel struck back, driving gold down almost $19 per ounce to about $870.95. Then gold came roaring back to close up almost $14 per ounce from its low, finishing at $884.50. This means that the negative impact of the liquidity drain caused by the yen-hit was completely undone as gold reversed the would-be destruction leveled at it by the cartel, gaining back almost everything that the original cartel onslaught had taken away. There's nothing like having yen longs against the dollar and the euro and stock index puts to reverse the intended damage to carry trade liquidity which the cartel tried to wreak this week. Note that last week Friday, at 2:05 PM EDT, the yen stood at 105.711 yen per dollar and 162.915 yen per euro, while on that day the Dow finished at 13,058.20 and gold closed at 856.35. So now this week gold starts to push upward, reaching as high as $889.50 on Friday, and closing up $33 per ounce from last week's close on its quest to push past $900 again. As a result, the cartel goes into panic mode and asks their evil toadies in Japan to call on super-yen for another performance. The result: By Friday the yen strengthens to 102.886 yen per dollar and to 159.203 yen per euro as of 2:45 PM EDT, as the Dow gets leveled down to 12,745.88. So the cartel cashed in on 312 Dow points of market-crashing power, only to have gold gain $33 per ounce while silver temporarily cleared 17 again. The Illuminati must be really glad that they destroyed the stock markets for nothing, and have in fact helped gold's cause by enhancing its value as a safe-haven. So much for yen manipulations. After super-yen went up, up and away, so did gold, while the stock markets went down in flames! It doesn't get any better than that! Super-yen has just been exposed to kryptonite, aka protective derivatives, making it powerless against gold. The yen-hits have become little more than a nuisance to gold as the US economy crashes and burns and gold becomes the safe-haven of choice over treasuries which are denominated in a doomed fiat currency known as the dollar. If the American public wants oil prices to come down, the easiest solution is simply to buy gold and silver by the truckload. Wait until you see how far the cartel can drive oil prices down when gold blows past 1000 on its way to 2000! Forget energy alternatives, which will take years to implement. Just exchange some of your "worthless paper" for the only real money and we absolutely guarantee that oil prices will drop like a rock no matter how much OPEC yells and screams. Then OPEC will imminently threaten to break their dollar pegs and all hell will break loose unless the Fed strengthens the dollar and purges the economy. And if the Fed does not support the dollar, hyperinflation and double-digit rates of return will immediately destroy the US economy as the dollar pegs are broken. The economy is going to get destroyed anyway, so for the public, the sooner that occurs the better, because the longer this charade goes on, the deeper our fall will be. And if we wait too long, a major depression far worse than any economic debacle in our entire history is assured, a depression that will make the Great Depression of the 1930's look like the Roaring 20's. You can force the issue if you support gold and silver. Yet the misinformed US public knows nothing about gold as money nor does it understand gold's interrelationship with oil. They are going to perish for their lack of knowledge, to use a biblical statement about what happens when people stop following God's plan because they don't read or understand their bibles. Always remember, gold suppression is JOB ONE at the Fed. The only difference between 1980 and today is that Paul Volcker stated in his memoirs that his only mistake in purging the US economy was his failure to cap the price of gold. Gold went from $35 per ounce just before Nixon took us completely off the gold standard in 1971, and soared to $850 per ounce in 1980. For gold to equal that feat in the current decade, gold would have to go from $252 to $6,120, which is where Shadowstats statistics indicate it would have to go to make up for actual, as opposed to official, inflation. That is why you see this continual gold suppression via central bank gold sales and leasing and the destruction of resource stocks by use of naked shorts, all courtesy of the PPT, which did not exist in 1980. Paul Volcker's statement is the cartel's version of "never again." They want to destroy your capital and discourage you from acquiring any precious metals and commodities so they can swoop in and buy them up at bargain basement prices just before they bail out at the top of the stock market using dark pools of liquidity unseen by the public and then use the proceeds to drive up precious metals, commodities and their related shares which they have loaded up on in the interim after beggaring everyone else. You must not let them do this to you, so load up now on gold, silver and their related shares, which will cause a huge short squeeze on the cartel, or you may as well just roll over and die and let the cartel have their way. It's time to take a stand!
... Real GDP, which takes into account actual, as opposed to official inflation, which excludes profits that have resulted from the production of zero value and overvalued assets (fees, commissions and spreads made on the sale of toxic waste) and which excludes bogus hedonic adjustments which we have described in recent issues, is now so negative that you would probably not believe us if we told you what we really thought it was. And if we keep going the way we are now you can try negative double digits on for size!!! Just as an example of the effect of actual inflation alone, consider that the nominal GDP in 2000 was 9,953.6 billion, but in 2007 it was 14,084.1 billion. Actual inflation has averaged 9% over that time frame. If you divide 14,048.1 billion by 1.09 seven times, you get a real GDP of 7,704.48 billion for the year 2007 expressed in year 2000 dollars. That is an average loss of 3.7% per year on the GDP, which the government tells us has been so great and wonderful. And so where do we end up when we take out the hedonic adjustments and the profits from producing zero value and overvalued assets? We are afraid to even make the calculations lest we endanger our mental health. Alan Greenspan can be thanked for destroying the American middle class. He provided the money and credit that created the asset bubbles that kept breaking, and he finally got to administer the coup de grace to the middle class in the wake of the dot.com bubble and 911. That occurred when he lowered the Fed funds rate to 1%, and chased everyone out of treasuries, high grade corporate paper and other real AAA paper into toxic waste, while destroying the hard-earned savings of all Americans by reducing their rates of return to near zero, or in the alternative herding them into the higher yields of toxic waste in order to keep up with official inflation, much less actual inflation, which was being driven by a rampant and profligate supply of money and credit. So you all got to pick your poison. Secure assets with low returns destroyed by inflation, less secure assets with higher returns destroyed by loan defaults resulting from fraudulent underwriting, worthless dot.com stocks, overpriced homes, a losing stock market which has not even kept pace with inflation, bonds and treasuries destroyed as rates were raised back to 5.25%, leveraged derivatives that are unsupported by collateral, that no one understands and that are about to go into a thermonuclear meltdown or auction rate bonds which now have no market and therefore no value. That's quite a smorgasbord of goodies there Mr. Bubbles! What would he have done for an encore? Thank Goodness we did not have to find out. His only defense is that he did what he was told to do by people like Rockefeller, Rothschild and the Black Nobility of Europe, but of course you will never hear him say that. This is why all his explanations sound so bizarre, ridiculous and implausible. He can't tell you the truth, which would expose his Illuminist handlers. Conflicting signals keep coming from the worldwide banking industry, Wall Street, governments and central banks regarding the status of the now nine-month old credit crisis. G7 ministers agreed on a 100-day timetable to expose all losses and exposures to loss. That means by the end of June at least everyone in the banking industry is supposed to know how bad the situation is. That does not mean that we will know. Each country will supposedly bare their problems. There will be no double-checking. It will be an honor system based on some pretty dishonorable people. Banks have lost trust and confidence in each other. You have to remember American bankers and investment bankers defrauded other bankers worldwide and they are not going to forget that in a hurry. This aspect is really the root of the problem. What governments and bankers are afraid of is the public losing confidence as well. Central banks are already holding more than $1 trillion in toxic waste for which there is no market and the public in each nation is going to end up not only paying the debt and bailing out the bankers, but they will also pay with less purchasing power as inflation ravages their wages. The credit crisis is over as Bernanke, Buffett, Paulson and Gross would have us believe. George Soros and Jamie Dimon say it is not over yet. We guess the bottom line is who’s solvent and who isn’t. The crisis is only 1/3rd of the way to its solution. If it’s over, why did the Fed, lower interest rates again and at the same time increase the amount of funds available to financial institutions? It is obvious Bernanke, Buffett, Paulson and Gross are lying. The situation is worse now than it was nine months ago. It was that banks would borrow short from central banks, but now it is up to 28 days for the Fed and we expect that to move to 90 days soon, and the ECB is lending short-term for a year and that is renewable for three years. You can bet these are permanent capital infusions. The banks will end up keeping the money or Treasuries and the central banks will keep the toxic waste that you will get to pay for. The banks and other financial institutions that are at the discount window and at the auctions secretly getting funds are insolvent. Not all of them, but at least half of them. Once it becomes known who is solvent and who’s not, the Illuminists will decide who is going under and who is not. The Illuminist banks will selectively be the only ones who attract capital. That is how they’ll cover up what they are doing. In July and August we will start to hear rumors of who is going under and who isn’t. All small and medium-sized banks, which are insolvent, will start to go under. That is why the FDIC called back 35 retirees to handle the 150 to 300 banks that are going down. The big question mark is will the public panic? We do not know, but there is a good chance they will whether its in Chicago or Frankfurt. Our advise is do not hold over $100,000 in any bank account, have $5,000 to $10,000 in small bills in cash in your safe at home. If you have and need liquidity for business or otherwise buy Swiss Franc government bonds. Own and take delivery of gold and silver coins, get out of your credit card and revolving debt, have freeze dry and dehydrated foods and a method of defending your family at your disposal. This could get very nasty if not now, later. The price of gold and silver will go exponential as will the coins and shares. While all this transpires inflation will rage in America and to a lesser extent worldwide. The central banks just tried to rally the dollar but to no avail, it is terminal. In just the last year the dollar has fallen 16% versus the euro and 13% versus the yen. This means higher prices on imported goods, more inflation and lower living standards. As you are well aware house prices are falling and in California from their peak they are off 25% with 15% to 25% to go. Big American banks have already written off $75 billion with a long, long way to go. Worse yet, we are in recession and it will get worse before it gets better. ... THE INTERNATIONAL FORECASTER SATURDAY 5/10/08 (051008(3)_IF P. O. Box 510518, Punta Gorda, FL 33951-0518 An international financial, economic, political and social commentary. HAPPY MOTHER’S DAY Published and Edited by: Bob Chapman E-Mail Addresses: international_forecaster@yahoo.com if_distctr@yahoo.com CHECK OUT OUR WEBSITE www.theinternationalforecaster.com 1-YEAR $159.95 U.S. Funds US AND CANADIAN SUBSCRIBERS: Make check payable to Robert Chapman (NOT International Forecaster), and mail to P.O. Box 510518, Punta Gorda, FL 33951-0518. Please include name, address, telephone number and e-mail address. Or: We accept Visa and MasterCard charges. Provide us with your card number and expiration date. We will charge your card US$159.95 for a one-year subscription. You can email us in two separate emails (1- the Credit Card Number with full name, address and your telephone number and (2- the Expiration date on the card. NON US OR CANADIANS SUBSCRIBERS: Due to the time that it takes for your mail to arrive to us from a foreign country, we would like for you to email us as above the CC information in two separate emails. Note: We publish twice a month by surface mail or twice a week by E-mail. international_forecaster@yahoo.com or if_distctr@yahoo.com RADIO APPEARANCES: To check out all of our radio appearances click on this link below: http://www.theinternationalforecaster.com/radio.php
-- Posted Sunday, 11 May 2008 | Digg This Article | Source: GoldSeek.com
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