Bob Chapman-Freedom Files w/James Burns
Bob Chapman with Jeff Crouere - Rings
Bob Chapman on The Sovereign Economist 20 July 2011 [FULL]
Bob Chapman - The Financial Survival [FULL]- 20 July 2011
Bob Chapman - National Intel Report - [FULL] July 19, 2011 –John Stadtmiller
Bob Chapman - A Marines Disquisition - July 21, 2011
Bob Chapman - Sovereign Economist - July 20, 2011 - Ralph Evans
Bob Chapman - LibertyRoundTable - July 22, 2011 – Sam Bushman
Bob Chapman – Discount Gold and Silver Trading - July 22, 2011
People know higher prices caused by inflation mean they can buy less with their money. What they do not think about is the long-term affect of inflation and how it negatively affects their overall standard of living. Inflation can only be caused by the Federal Reserve by creating money and credit in excess of economic growth. This is what the economy has had to contend with since 2000. That process was begun immediately after the dotcom stock market collapse. That evolved into the real estate bubble and when the second bubble broke the creation of money and credit boomed in order to offset the deflationary result of the real estate collapse. The Fed is still doing the same thing today as they did previously via monetary easing. Of course, that effort is being assisted by zero interest rates. Due to the resultant inflation, created via these policies, the US dollar has come under pressure versus other currencies, but particularly versus gold and silver.
Today we watch the machinations in Congress, which is trying to muster an agreement on the short-term debt extension. Little is said about the long-term debt problem, or about the continuance of money and credit creation and zero interest rates, both of which are inflationary. In this process our President has offered up the previously looted Social Security and Medicare programs. Programs the public has paid for to support them in their final years of life. Those who buy Treasury securities are the biggest losers. Even that 10-year note at 2.92% is losing about 8% of the value of its funds annually. Millions of investors are doing just that. The Fed believes that in order to keep the game in motion interest rates must stay at zero, the impact of excessive creation of money and credit, has to continue and the decimation of peoples savings and dollar purchasing power has to be destroyed in that process. The idea is to let dollar holders take the losses as Congress and the Fed proceed on their merry way destroying our financial structure. Wall Street knows this, but is more than happy to go along with the program and in a slow process investors are switching to gold and silver coins, bullion and shares to offset the loss being foisted upon them.
The next question is one we have entertained many times before. Will government commandeer private pension plans, 401Ks and IRA’s in return for a government guaranteed annuity; will these retirement plans be traded for US Treasuries; or like one bill says, limit the amounts that can be removed and how many times you can remove funds? The only way we know to protect yourselves is to get out of these vehicles, or borrow against them and invest in gold and silver related assets. Those of you who want to cash out and move out of the country had best do so soon. We believe there is a good chance capital controls could be put in place in the US South Africa and Rhodesia , now Zimbabwe US
Government debt is piling up and the Fed is already buying 80% of this debt, which means other avenues of finance need to be found, to fund government. That is when retirement funds will be confiscated for the greater good and funds will only be able to be sent outside the country with federal government approval. Welcome to our modern police state. You don’t understand currency controls until you have lived under them, as we have. Present Treasury and Agency needs are large, but future bond sales and debt service will be daunting. Remember, unfunded future liabilities or about $105 trillion, a staggering figure. As we go forward all government can do is print more money via the Fed and that means more inflation and the end of what was the American dream.
Recovery has been very elusive. A slight move upward and then trailing off failure. Mr. Bernanke tells us he will use proceeds of the sales of securities to fund Treasury and Agency future purchases, he will roll the paper, so he can continue to fund these markets. Continuing to buy 70% to 80% of these debt securities is a tall order. We do not know when such a policy will end, but it looks like they’d like it to be perpetual. That, of course, is impossible because the economy would move into hyperinflation and the dollar would fall in value.
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