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International Forecaster June 2010 (#9) - Gold, Silver, Economy + More

By: Bob Chapman, The International Forecaster

-- Posted Thursday, 1 July 2010 | | Source:



The Fed Chairman Ben Bernanke tells us the American recovery is struggling because of European austerity. Does he really expect us to believe that? There is no question austerity in Europe will lead to a deflationary depression. Unemployment will rise quickly, which means major cuts in government spending and lessened revenues. Beside the public those affected the most will be towns, cities and states, many of which are on the edge of insolvency surprisingly even in Germany. The PIIGS unbelievably say their instability and debt is the result of the deflationary economic policies of the richer euro zone members. Germans and others are saving, agreeing to low salaries, producing more and not increasing debt. On the other hand the PIIGS and others were headed in the other direction. This is why the euro is doomed. After destroying their economies with one interest rate fits all, they are quick to blame others. Then again the bankers should never made the loans they did either. The result is deflationary depression, which is just getting underway. It is proper for Europe to use austerity, but it is a big mistake to raise taxes. That leaves little for the populace to spend to keep the economy going.


The US is determined to take the opposite tack. No austerity and full steam ahead. This in spite of the fact that the economy is faltering, especially in real estate, both residential and commercial. It is so bad that they have obscure government agencies buying mortgages. These new buyers plus Fannie, Freddie, Ginnie and FHA have been buying 95% of mortgages. Without massive stimulus and or Fed monetary expansion we will definitely see negative GDP growth in the last quarter of 2010. The indicators are in place and the tell tail signs of retrenchment abound. Wall Street is about to give up the ghost and see a test of the March 2009 lows. We are sure there will be rallies as the Fed unleashes trillions more in money and credit that as well will produce much higher inflation. This could produce $5,000 or more gold and a 5,000-point Dow.


As you are now well aware Fannie and Freddie are going to punish people who have stopped paying their mortgages, who can pay them, and who are paying other bills instead. This leaves lenders with foreclosures and much more inventory than they ever imagined. This additional problem will bring on the double dip that.

Wall Street and Washington so fear. As a result of this and other failures we are about to experience the worst economic collapse sine 1348. The stock market is topping out readying itself for its most disastrous fall in history. The fall will be followed by years of depression, all of which has been deliberately created to bring the world economically and financially to its knees in an attempt to bring about world government by Illuminists. Some market analysts understand where the market is headed, but most who do understand, write and talk about the mundane observable trappings and not what the situation is really all about. We have several analysts talking about a market collapse. They do not talk about the real forces behind our misfortune. We recently watched an interview of a man who wrote about the Bush family. His only admission was that they were players in the game controlled by other forces, which he refused to mention. He wouldn’t say what they were up to and who they were. This shows you how terrified writers are who are confronted by the power of the Illuminists.


There are always these lone voices in the wilderness, which at best – some 15% of the populace – listens too. You had better listen this time because it could well cost you not only your assets, but your life, especially when another war is being prepared for you to engage in. Nothing is really as it seems to be and there are no coincidences. You are about to enter a world of chaos from which few will survive unscathed. A world of no banks, no public facilities, no food and rampaging gangs of desperate people. Unemployment of 50% and little law and order. Violence will be rife. This is not a pretty picture, but we have spared you the details. The world had better wake up fast so they’ll be prepared to deal with what is to come. If you were not aware of it the dark side really exists. We also want to remind you that for more than 20 years we have been almost totally right, and we have made some stupendous calls.


We are now entering the next to last phase of our journey. The wanton creation of wealth, inflation and perhaps hyperinflation, which will rob you of your assets. A stealth attack on what you have left by the people who control your government. Such monetary creation is the only way these people can keep the game going. They know it won’t last, but they proceed anyway. For awhile they’ll keep the multitudes at bay with extended unemployment and food stamps, but that will fade in time for lack of financial control, as the system begins to break down.


You already see all fiat currencies under fire, as is sovereign debt. Can it get any worse? Of course it can, and it will. Implosion is the word everyone is going to discover and understand. An event that cannot be hidden by zero interest rates and endless supplies of money and credit. That word implosion will describe what will happen as a result in the machinations of the Federal Reserve.


Now that you have seen a glimpse of your future we will move on to the deteriorating world that we now live in.


CNBC and the mainline media tells us all is well irrespective of a failing recovery, climbing unemployment, which has just recently been assisted by trillions of dollars in stimulus. The question is what comes next? More of the same, of course. There is no other avenue to pursue even though Mr. Bernanke knows such stimulus is not going to get the desired results. These players behind the scenes know history. They know what we know. They depend on 98% of the people not discovering what they and we know, and that is where this is all headed. The important people in Wall Street, banking, insurance and in transnational corporations know, but they are not about to tell you. The market doesn’t like what it sees, but it knows it cannot do much about it.


Americans are fighting back as millions have not made mortgage payments for a year and are living for free in their homes. As an antidote Washington is now considering charging them rent, something they should have done four years ago. If you add in the disaster that is commercial real estate, personal and corporate debt, and sovereign debt, you have an insolvable problem that can only end in great grief. The choice to expose Greece’s weaknesses from behind the scenes looks to be a fatal mistake. The elitists never envisioned the firestorm that the exposure has led too. Greece is about to explode, not because of the reduced socialist benefits, but because the people are finally realizing that they and others have been taken for a ride by the bankers and others behind the scenes and from within their own government. Discovery by the Greek people and others is not something the illuminists expected. They now are forced again to expedite their programs - when they have to do that they make mistakes, often-big mistakes, which gives us pursuers an advantage we could never hoped to have had. After their latest mistakes the bankers are scrambling to preserve the current system. It is not to be. There are far to many who now know what they are up too.


The next step for the elitists is to designate SDR’s, Special Drawing Rights, as the new world currency. Needless to say, it won’t have gold backing. The problem is they cannot implement it until they get worldwide carbon taxes to back up this new worthless currency. That is why BP, which is controlled by the Illuminists, had its false flag event in the Gulf of Mexico. This is the ruse to be used to pass such legislation in the US. The powers that be are desperate to find an alternative to the US dollar as a reserve currency because the US is broke. We might also direct you to the USDX, the dollar index, which is in the clutches of a long-term perfect head and shoulders, which is the most negative, powerful, technical formation achievable. Needless to say, this point has not been overlooked by the elitists. On the other hand as a result intelligent investors worldwide have been accumulating gold as an alternative, replacing the dollar as the world reserve currency. This is just as we said it would be in June of 2000. If you are not on board get onboard now before you are left at the station. More and more people are entering into gold and silver assets as they discover that frauds being perpetuated against them by their governments. They are not going to trust the SDR even if 20 currencies are indexed and funds from carbon taxing back the currency. Investors already recognize the SDR as just another fiat currency. All they will be doing is replacing one worthless currency with another, without gold backing and it isn’t going to fly. At the same time gold and silver will just move relentlessly higher. In addition what does the IMF do after all their gold is gone? They will be flat broke again. If you noticed, every time they sell gold the price goes higher. As a matter of fact some nations are buying gold and dumping dollars, so they are aware of what is going on. Some smaller nations are afraid to act. They know printing money is not the solution.



The world’s annual gold production just fell 9 tons as the Marlin Mine in Guatemala shut down.



The Olympics are over, and the Village is for sale. The complex in Vancouver, British Columbia, that housed the athletes during the 2010 Winter Olympics has been converted into 1,100 luxury condos. An 815-square-foot, one-bedroom apartment is on sale for C$879,000 ($845,270), which works out to C$1,078 a square foot, or $12 higher than the average price in Manhattan.



            Several days after the Romanian parliament passed a law to cut pensions by 15% in order to qualify for a critical $20 billion IMF loan, the Romanian Supreme Court found this law was not only unconstitutional, but unappealable (along the lines of what our own SCOTUS will do once the Fed's transparency appeal gets to the very top, resulting in confirmation once and for all that American laws are only made for the benefit of the Federal Reserve). The decision was reached hours after dozens of Romanian citizens stormed the presidential palace "to get an audience with President Traian Basescu." As a result of the Constitutional Court's decision, the IMF loan "may now be delayed, and this will be a big blow to the government of Prime Minister Emil Boc, the BBC's Nick Thorpe reports." Also as a result, Romanian (and by association, neighboring Bulgaria) CDS blew up today and closed +30 to 410 for Dracula's host country, and +20 to 360 bps for the country that served as the reverse engineering center of the former Communist Bloc. [All of the 20 countries that are on the verge of bankruptcy, which includes the US and the UK, are faced with the same problem they are being compelled to absorb austerity and at the same time pay back loans in the form of bonds lent to them mostly by banks that created the money out of thin air. They like Greece should default, along with the other countries in financial trouble and let the banks go under. They might consider a 30% payout on defaulted debt to countries that lent them money, as a gesture of honesty. This is exactly what we told the Greeks to do – then they will all have cheap currencies and be better able to compete because their currencies will be at a low level. On Thursday, when we did a TV documentary in Athens, we were asked whether Greece should use the Drachma domestically and the euro for trade, and we said absolutely not. The reason being they would lose all of the value of a low priced currency, and that is dumb. We also said do not under any circumstances sell off assets of the sovereign country of Greece. As an example the government, which is run by an Illuminists, wants to sell the Greek Islands to his Illuminists friends for 20 cents on the dollar. Greece is going to have a major strike next week.  What they should do is impeach the PM.]


            Greece’s banks have borrowed about 89.4 billion euros ($110bn) in so-called repurchase agreements with the European Central Bank, according to Moody’s. Greek banks turned to the ECB for cash after the global financial crisis that peaked in 2008 and this year’s sovereign fiscal debacle curbed their access to wholesale funding and bond markets.




063010(9) IF


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