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International Forecaster April 2009 (#5) - Gold, Silver, Economy + More

By: Bob Chapman, The International Forecaster

-- Posted Wednesday, 15 April 2009 | | Source:

The following are some snippets from the most recent issue of the International Forecaster.  For the full 30 page issue, please see subscription information below.



            Just to show you how ridiculous their budgetary GDP assumptions are, as you know from our last issue, we have predicted that Real GDP, which is GDP after adjustments for inflation, or should we say hyperinflation, will be minus 6.3 percent, or even worse, for the first and second quarters of 2009.  Then due to the totally outrageous "flash in the pan" stimulus packages, we see Real GDP improving slightly to minus 3 to 4 percent over the last half of 2009, with a flat Real GDP for the first three quarters of 2010.  After that, we drop off into oblivion as money-bomb bailouts and stimulus packages become ever less effective while the Real GDP eventually plunges to minus 10 percent or worse.  The Fed and our corrupt politicians will then be found desperately pushing on a string while hyper-stagflation takes us into the diseased bowels of the Much, Much Greater Depression.


          Apparently, our bogus, so-called representatives, during their budget calculations, conveniently forgot to use the GDP deflator, or based it on the fairytale PPI and CPI figures being produced by the Bureau of Lying (Labor) Statistics.      Perhaps they even forgot to consider the consequences that would result when trillions of dollars are pumped into an economy that is producing fewer and fewer goods, and the consumers of which are spending ever less money, namely, hyper-stagflation.  Yes, we are being sarcastic.  They did not forget the deflator, they don't believe the figures produced by the BLS and they understand perfectly the impact, which the inane bailouts, failing production and tanking consumer spending will have on our economy. They know all these things, yet they are intentionally misleading you as instructed by their Puppet Masters, who have either bought them off or compromised them.  Our Congress and Presidential Administration have become fiction writers and tellers of tall tales to deceive you into thinking they have things under control.  They want you to believe that the stock market has just bottomed, and that we will only have a recession, with recovery close at hand, while the dollar rebounds and the bond market is saved, even as they pump trillions of dollars into our economy via monetization of treasury bonds.  If you believe so much as a single word emanating from corrupt Wall Street shills and government officials, then you are just plain dumb.


          Long-term U-6 unemployment has now reached the 20% level, and is going to get much worse, so what do you think that will do to tax revenues, production, consumer spending, corporate profits and GDP?  Do you think that our President and Congress figured on 20% to 35% unemployment for the four-year period of their budget projections?  Not a chance.


          How will the Fed put the brakes on inflation as its balance sheet grows to be five trillion dollars or perhaps much more, when that five trillion dollars represents par value on toxic waste derivatives worth only 10 to 30 cents on the dollar, which will have flooded the Fed's balance sheet as they are taken from bankster-gangsters and GSE bondholders around the world in exchange for the treasury bonds which the Fed is purchasing to support the treasury market and to suppress gold.  How do you bleed out five trillion dollars from the economy by selling toxic assets worth perhaps a trillion dollars?  Let us assure you:  IT WON'T WORK!


          Note that M3 was pumped up at an average rate of 14% worldwide, thus baking double-digit inflation into the cake on a global basis.  Yes, US M3 has risen recently from the 12% range to around 18% while inflation has tapered down from 14% to about 9%, but that is due to the deflationary loss of wealth and the crippling and withholding of credit by US Illuminist banks that have parked their cash with the Fed at interest instead of lending it out.  At some point, that will have to change and re-inflation will have to occur, or the system will collapse, and the Illuminati cannot allow that to happen until they have bailed out of their dollar-denominated paper assets via the Big Sting Two, a process which is currently ongoing.  We already see the Illuminists tooling up for a re-inflation of the real estate market as previously reported, and we believe the banks are waiting for a signal from the Fed to lend out their money again, mostly to each other because such loans are insured by the FDIC, probably at a time intended to reinforce the impact of the stimulus packages and the re-inflation of the real estate market.  Rest assured that you won't see these relatively lower rates of inflation for the vast majority of the four years of Romulus's budget projections when this re-inflation occurs. The Fed will lack assets of sufficient value to drain money from the system to put the brakes on what will be runaway inflation.  As well, continued massive treasury monetizations will remain necessary as foreigners shun US bonds and as the Illuminists and their henchmen get ever more desperate for cash to keep the system going as long as possible so they can continue to milk it for all it is worth.


          The five trillion or more dollars that will be monetized by the Fed does not even count the multiple trillions in credit that is being extended via the other Fed credit facilities that are now being created on what seems to be a weekly basis.  In order to stop the resulting hyperinflation from the ever-growing deluge of money and credit sloshing around in the system, what will they do, pull the plug on their credit facilities, collapse our economy and take us into a deflationary depression? Absolutely, and that is in fact their diabolical plan.  They are just waiting for an advantageous exit point, probably after they have completed the re-inflation of our re-animated zombie economy so they can finish bailing out of paper assets via the Big Sting Two.  And if they don't intentionally pull the plug, it will be pulled for them by the resulting, and quite inevitable, hyper-stagflation and double digit interest rates that will throw us into what would be a multi-decade depression were it not for their planned adventure into WWIII.

          Risk re-evaluation will occur as the stimulus packages, in ever-increasing amounts, peter out with little effect and the government tries to keep pushing on a string.  All the new money sloshing around in our economy as treasury bonds continue to be monetized at an ever-increasing rate because we can't pawn them off on foreign nations any more will create an unstoppable inflationary juggernaut.  That means a race into double digit interest rates as were experienced during the early 1980's, and that in turn means the destruction of the real estate, bond and interest rate swap markets, which will eventually account for tens of trillions in losses for already insolvent Illuminist and non-Illuminist zombie financial institutions around the world.  That also means a race to the exits for all foreign and domestic holders of what will be increasingly-debauched, dollar-denominated paper assets, including treasury bonds, which will then add an even greater amount of cash to the already flooded system.       When that happens, gold and silver will go inter-dimensional!  If you think things are bad now, you haven't seen anything yet!  Gold and silver are your only refuge from the evil machinations of the Illuminati, and when deflation finally hits, gold bullion and coins will be the sole survivor of available safe-havens.   


          Apparently the elitists are now not only trying to save the so-called "legacy banks," they are also trying to save the privately owned Fed in their bid to create a market for toxic assets.  That is because the Fed, via its Term Securities Lending Facility, which it has now extended from the original primary dealers to Illuminist institutions around the world, has volunteered to become a toxic waste super-site. And unless the Illuminists can inflate the value of the Fed's toxic waste assets, the Fed will not only be bankrupt, it will be unable to drain enough money out of the system by selling its toxic assets as it attempts to put the brakes on the inflation it knows it is causing with all the monetizations.  If the Treasury Department allows the Fed to monetize more bonds via a taxpayer bailout of the bankrupt Fed because its assets are insufficient to drain money from the system to stop hyperinflation, such a move would only exacerbate the inflationary pressures and be self-defeating.


          Tiny Tim wants to have the FDIC finance, at six to one leverage without recourse, the public-private partnerships which will overpay for toxic waste to create a market for these "assets" at somewhere near par so the balance sheets of the legacy banks and the Fed can be saved at taxpayer expense.  The private side of these proposed public-private partnerships does not expect to make a profit, and that is not the point. The real purpose for these public-private partnerships is to enable the Illuminist institutions to buy their trillions in toxic waste FROM EACH OTHER, at values approaching par.


          By doing so, they may lose on their investment in toxic waste through the partnership, but due to the highly leveraged, non-recourse loans from the FDIC, they will make a huge killing, at six to one, because they are buying out, FROM EACH OTHER, at or near par, six dollars of toxic waste on their balance sheets for every dollar they invest via the partnerships, without having to worry about any recourse on the money lent to them by the FDIC to fund these investments.  All losses in partnership asset values are to be borne solely by taxpayers.  This state of affairs was clearly pointed out by renegade economist, Michael Hudson.  This is Illuminist criminality at its most blatant and repugnant level.  Could someone please take Tiny Tim's ukulele and bop him over the head with it?


          But Romulus Augustulus and Tiny Tim do not intend to stop there.  Now, after making it look like this is such a great deal because all the Illuminist insiders are clamoring to get in on it, these miscreants are holding these assets out for sale to the proletariat to lure in their lowlife, taxpayer, sheople sucker-dupes for yet another Illuminist killing by creating a bailout fund for toxic waste assets that they can invest in via Wall Street criminals, who will make a fortune on commissions and spreads while their investor-dupes get taken to the cleaners. This is supposed to be similar in concept to war bonds, as if it were our patriotic duty to bail out our traitorous Illuminist financial institutions.  These miscreants have no intention of making a profit as we just pointed out.  So now, not only do they want to screw you out of your tax money, they want you to put up your own private funds as well, at a certain total loss.  They will start out by making purchases of toxic waste, bidding up the price to show a profit to lure in their serf-sucker-dupes and their non-Illuminist institutional investment victims, and then they will bail out of these assets through their unregulated dark pools and leave everyone else holding the bag as their toxic waste plummets to its true value, somewhere in the vicinity of zero.  This is as scummy as it gets.


          This is exactly what they did with the auction rate municipal bond market until the state regulators went ballistic on them.  They created the market, got bogus AAA ratings for various over-leveraged insurers to backstop the bonds so investors would buy into them, thereby driving rates down and profits from increased principal up while generating fabulous commissions and spreads for themselves, thereby luring ever more yield-chasing sucker-dupes into the market, after which they pulled the plug on the market when their scam was exposed, but only after they dumped their own proprietary holdings.  It is also similar to what they did in the scam by pumping up assets, giving commission generating IPO's to insiders who immediately dumped their IPO stocks on sucker-dupes, leaving them with stocks in shell companies that had no assets, customers, business plans or profits.  In fact, this is just like the real estate derivative scam as well.  As you can see, they just keep running the same basic scam over and over again, and people keep falling for it.  We remain stunned, amazed, stupefied and mystified by the failure of investors to understand how they are being screwed over and over again by the same criminals using their same tired scams, ad nauseam.  



Wednesday, April 15, 2009

      041509 (5)_IF

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