-- Posted Thursday, 29 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 16 page issue, please see subscription information below.
US MARKETS
…
The ongoing destruction of our economy and the free trade agenda were energized during the period of the Bush-Clinton-Bush triple whammy of Presidential Administrations, and all of their nefarious dealings were assisted by Reagan's Executive Order creating the President's Working Group on Financial Markets, also known as the PPT. The PPT has been used to manipulate markets to assure insider-trading profits for elitists on Wall Street, in corporate America and in our government, and also to hide the destruction of our economy by preventing our markets from reflecting the truth about underlying fundamentals. Our markets are not free, and many decisions are made based on economic statistics that are more related to opium and mushroom induced pipe-dreams of the fiction writers at the Bureau of Lying Statistics than they are to any financial realities. This is why our markets have become counterintuitive. And if you try to trade based on truth instead of on elitist lies about the economy, you are destroyed by nonsensical, schizophrenic market action brought about by the PPT to cover up the nefarious dealings of the Illuminati. Charts, graphs and software programs are useless under these circumstances and cartel knowledge of what these methods predict is actually used against those who cling to them for a crutch.
Our entire society, from its citizens, to its corporations, to its government, is one big monumental cluster-you-know-what, and will only be changed when the people of our nation are made to feel the full impact of the destructive forces unleashed by the Illuminati and which the people of our nation, by their sluggish, doltish and oafish inaction, have allowed to happen. Yes indeed, you get the kind of government you deserve, and our disgusting and revolting government, which has now succeeded in utterly destroying the US economy, could not be more richly deserved by our ignorant, complacent, narcissistic and hedonistic citizens. The Fall of Rome will no longer be discussed. The Fall of the United States of America will take its place.
If we get a Bush-Clinton-Bush-Clinton quadruple whammy, it's all over but the crying. If this monumentally disastrous event occurs, you should immediately remove yourself and as many of your family members as possible from the US. If you can't leave, be sure to accumulate weapons, ammunition and freeze-dried food by the truckload and get ready to rumble. A new Clinton Administration means that the epic battle of Armageddon approaches. Anything she does will increase the destructive power of our current debacle by an order of magnitude. The fact that so many of our citizens are head-over-heels about the Womanoid's candidacy tells you all you need to know about the intellect of average American citizens, who now appear to have I.Q.'s that can be counted on the fingers of one hand. The public's current disinterest in gold and silver is an equally good indicator of America's cretinism. The stupidity of our citizens is probably the scariest thought of all. How do you work your way out of a crisis when everyone around you is an idiot?
We love to listen to the ludicrous reasons that the fane-stream media uses to describe each days market action. It makes for great entertainment. Here's the latest from AP as quoted in AOL Money and Finance: "Wall Street advanced in uneven trading Tuesday after a drop in oil prices and an unexpected gain in new home sales encouraged investors to put money back into the market." How sublimely ridiculous. The only ones putting any money back into this market are the inside players for the PPT. Everyone else is fleeing in terror as real estate inventories now exceed 11 months, as real estate prices dropped 14% for the first quarter of 2008 yoy, which was the greatest decline in the entire history of the Case Schiller Index since its inception in 1988 and as consumer sentiment has dropped to the lowest level since 1992. The reality is that real estate is continuing to plummet and that consumers are pulling back. That means subprime, Alt-A and prime mortgage bonds and derivatives are going to get hammered even more. That means that foreclosures are going to accelerate because everyone that bought with little or no money down from 2004 forward are now under water and do not want to throw good money after bad. That means that consumer spending, which comprises 70% of our economy, is going to get hammered as people clamp their wallets shut or are simply broke from outrageous oil and food prices.
What does a $3 per barrel drop in the price of oil mean to anyone? Anything over $80 a barrel is a problem. Are we going to fair better with oil $3 lower for one day when we are already north of $120? What does an increase in new home sales mean when it is coming off a terrifyingly bad prior month that was just revised much lower? We'll tell you what it means - BS!!! And lets not forget a plummeting dollar, out-of-control inflation and M3, insolvent major financial institutions, bailouts across the board for a smorgasbord of fraudsters which includes, borrowers, creditors, raters, insurers and securitizers alike that will be passed on to taxpayers as hyperinflation and mega-taxes, crappy rates far below inflation rates for money markets, savings, treasuries and bonds, banks that are afraid to lend money to each other much less to non-banks, increasing real-world interest rates based on increased risk of default across all categories of debt, food riots, a systemic breakdown based on moral hazard, virtually nonexistent regulation and a complete lack of transparency, potential new military conflicts, a mountain of multi-trillions in credit default swaps, most without any form of collateral backing them, waiting to implode and a litany of other negative fundamentals that would take another full IF issue just to briefly summarize. We cannot think of a single reason to go back into the general stock markets, but our fane-stream media manages to come up with some doosies based on their Goldilocks fantasies and other phantasms.
Tuesday's precious metals action was another classic post-holiday cartel orgy of gold and silver suppression during the thin trading which is characteristic of such days. Crude was hit just as we predicted and warned about in prior issues. When gold broke 1000 for the first time, oil was at 110. Now, with oil in the high 120's, we get an absurd 900 gold. This shows you the type of unpredictable and nonsensical volatility we get from the operation of our markets by the criminals on Wall Street and in our government. The PPT loves to steal from you. The dollar spiked up on another bogus PPT-orchestrated, dead-cat-bounce rally as open interest in USDX futures soared past 40,000 for the first time since April 25. Why should gold go down if the dollar goes up? If the dollar goes up substantially, that means the euro is going down substantially, so gold should be exploding in the Euro Zone. If anything, a weaker euro should be more supportive of gold than a weaker dollar as there are just as many euros out there as there are dollars now, and because the people of Europe are far more attuned to the uses and purposes of precious metals than are their US counterparts.
As usual, the yen was weakened to support the stock markets while the metals were hit to assist the commercials in their rollover of gold and silver futures from June to August. The cartel used the thin trading and the spec's idiot black boxes as usual to do their dirty work, along with sales and leasing of precious metals and naked shorting of resource stocks across the board, from the smallest to the largest, which incidentally is why the smaller cap resource stocks have not prospered as logic would dictate. There can be no other reasonable primary explanation for the non-performance of resource stocks as gold has almost doubled in value over a mere two years since the big cartel hit during June, 2006. While the credit-crunch has somewhat hampered the financing of projects by forcing new stock issuance in lieu of debt, thereby resulting in dilution of stock values, and while the average cost of extraction has increased due to rising energy costs, general inflation and the depletion of the richest grades of ore through cherry-picking during lean times, these factors alone do not account for the failure of these leveraged plays. There are many good projects out there with low costs of extraction whose companies have been pounded just as much as those sitting on moose pasture.
The cartel drove gold and silver below their 50-day moving averages and then the black boxes did the rest. There is always a major battle during rollovers, with each side trying to maximize profits and/or minimize losses as they move to the next future battlefront. The specs lost the battle as usual by being predictable (black boxes) and by failing to support their position with physical purchases of bullion where they take possession. The failure of the specs and private investors to continually take gold and silver off the table instead of playing with counterfeit gold and silver paper (futures, mint certificates and ETF's) is their single greatest mistake. Had they taken our advice to get physical, and diversified their capital to hold and to physically possess a far greater percentage of real bullion, gold would be north of 1500 on its way to 2000 by now, and silver would be north of 30 on its way to 50. Apparently, the specs like to play in rigged casinos where they can lose lots of money. The cartel is so short of physical gold and silver bullion in deliverable form that they had to create the gold and silver ETF's to concentrate stores of bullion, all provided by the funds of investor dupes, for their suppressive sales and leasing activity, which the CFTC now wants to make totally opaque to anyone who might inquire about such machinations. Anyone who invests their funds in these ETF's is a suicidal maniac - do not even call yourself a gold-bug anymore if you invest in such elitist detritus.
The short-term prospects of gold and silver are now hard to predict because the specs did not properly support their positions with massive physical purchases of bullion. Did anyone bother to short oil or go long the dollar to neutralize the cartel's obvious manipulations? Did anyone acquire protective derivatives to cover yen manipulations and stock market crashes? Can anyone bother to keep an eye on their holdings before, after and during a holiday? We can assure you that the cartel never rests regardless of what day it is. Why keep allowing them to cause technical damage every freaking holiday? There is no holiday from the evil manipulations of the cartel. How about discarding those useless black boxes to stop the foolish, automatic, selling that causes washout after washout right when you have them where you want them?
Despite all these errors, the next debacle that will send gold and silver into outer space cannot be very far away and may be just around the corner. The deterioration of the economy will continue, inflation will quickly worsen, consumer spending will drop off a cliff and real estate is headed for a deep, dark, black hole that will suck down all real estate related bonds and derivatives into its vortex. Once the inevitable breakdown of the US economy becomes apparent, even an idiot will be able to make money in precious metals. So be ready and take your positions. Remember, once the rollover is complete, the specs will be in at much lower price levels and will be looking to make a profit to offset their losses in toxic waste so they can live to fight another day. Another military conflict can happen at any time now, bank failures are on the way, and official inflation is due to spike soon when seasonal adjustments are removed. The dollar will continue to deteriorate, and if the ECB drops rates against Germany's wishes, you will have a gold party in the Euro Zone and a potential break-up of the European Union. So a rally can start at any time and you had best be ready when the inevitable rally comes.
The housing crisis continues to deepen. You know the daisy chain of fraud that created it. The Fed, investment banks, raters, mortgage originators, appraisers, brokers and borrowers all broke the law or went along with the program. The key now is to purge the excess and that is in process. It will eventually work splendidly unless our government interferes. House prices are still too high but left alone they will descend to a level at which they will again become affordable and lenders will be willing to lend again at reasonable interest rates.
The lenders and mortgage holders all want a bailout. Look at Pimco, 61% of fund assets backed into mortgages guaranteed by Fannie and Freddie and American taxpayers. We do not want anyone bailed out and then we are sent the bill, neither lender nor borrower. We don’t need for the housing industry to be nationalized. We don’t want fascist central planning. This is the ultimate in moral hazard. This is why there should be no Federal Reserve to serve the interests of banking and Wall Street.
Both lenders and borrowers lack accountability. They all want to get off the hook and allow us to pay for it. Tell everyone in Congress that if they want to bail these gamblers out they should do it with their own money, not ours.
America has been in recession for some time in spite of massive amounts of money and credit being injected into the system over the past four years. Now Europe is fast closing in on recession as well with Spain, the UK, Italy and Ireland leading the pack. In all countries retail sales are falling, unemployment is rising, as well as house prices. What we are seeing is a remake of the late 1970s; only today governments lie in their statistics and manipulate markets.
US inflation is 12-5/8%; China says theirs is 8.5%, Russia over 14%. Gulf oil producers average 12%; India 8%; Indonesia 12%; Brazil 5%; Chile 8.3%; Venezuela 29.3% and Argentina 23%. Is it any wonder gold and silver are appreciating against every world currency and have been doing so for the past four years? These figures don’t factor in widespread government subsidies, price controls and statistics that are out and out lies. Not only is monetary policy dreadful in almost every country, but also as a result of these profligate policies food and energy costs rise almost every day.
Real interest rates have fallen and are now negative in most countries with the exception of Brazil, Mexico and South Korea. Some countries have raised interest rates to combat inflation like Russia, Brazil, Australia and Indonesia, but few others have recently.
Inflation is a monetary phenomenon that can only be caused by central banks. The excuse is higher inflation is caused by temporary supply shocks and speculation. These countries say tightening is not warranted. They are making political decisions not economic, fiscal and monetary decisions for the right reasons. As always they want to be reelected.
In the third world, or what is now called, emerging economies, food accounts for 40% of their CPI compared with 15% in the G-7 economies. Those in the poor world get hit harder and non-food items are pushed up in cost as well.
A solution to this problem is for countries to reduce M3 from an average of 14% to 4% and to increase interest rates. That would expedite the US and the world quickly into deflation and deep recession.
Mindful of that central banks and governments have followed a policy of monetary and fiscal expansion, which is the exact opposite of that they should be doing. No one wants to face the music. This is a basis for a replay of the 1970s in both developed and underdeveloped countries.
We have only traversed 25% of the inflation problem and the credit crisis still has 85% to go. It is inflate or the system collapses. Otherwise it is deflation or depression. We have fiat currencies and are the victims of empty promises and a stealth tax on our assets.
…
THE INTERNATIONAL FORECASTER
WEDNESDAY 5/28/08 (052808(8)_IF
P. O. Box 510518, Punta Gorda, FL 33951-0518
An international financial, economic, political and social commentary.
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 Thursday, 29 May 2008 | Digg This Article | Source: GoldSeek.com
