Bob Chapman - The National Intel Report with John Stadtmiller 2011.12.13
Bob Chapman with Kerry Lutz 12/14/11
Bob Chapman - Financial Survival - December 14, 2011
Bob Chapman on Freedom Files with James Burns
http://freedomfiles.us/
FFw/JB Podcast (12/15/2011): Bob Chapman
The Fed’s third quarter audit data shows a total system debt of 355% and of GDP, in spite of so-called de-leveraging. It is down from the second quarter’s 375% of GDP, but up from 264% a dozen years ago. Financial sector borrowing fell almost 50% in the quarter but non-financial debt increased while financial debt fell – a push so to speak. Unfortunately most of the debt growth emanated from Washington
In 13 quarters Treasury debt is up $100 trillion an increase of almost $4.9 trillion, or by 92%. In three years Treasury debt rose from 16.2% of non-financial debt to 26.7% and total federal debt has increased from 46% of GDP to 78% of GDP. In 2007 federal non-financial debt grew from 3.3%. In 2010 it was 113%. Year-on-year total compensation rose only 2.8% as real inflation grew 11.6%. During that period corporate earnings set records. For the most part those earnings were achieved via layoffs. From the second thru the third quarters household debt fell 1.2% from a minus 0.6% and mortgage debt fell 1.8%, as consumer credit rose 1.2%.
Funding especially foreign funds of US
The result is that pressure was relieved in Europe and the US
As we pointed out earnings were the highest in four years. Layoffs were part of that, plus a lowering of loan reserves, bank lending and possible losses were virtually unchanged and the to-big-to-fail banks were able to borrow money at no cost, while the public pays up to 35% for funds.
European banks are struggling to raise capital under BIS dictates. In that process they are selling off their best assets. Normally they would sell the worst assets, but presently losses would worsen their balance sheets, so they are forced to sell best assets to bolster the balance sheet to meet the reserve figures demanded by the Bank for International Settlements the banker’s bank. These sales tend to negatively affect markets. The higher the leverage, the worse the effect.
Via the Patriot Act the US government has declared war on Iran Iran supposedly having nuclear weapons, which is a figment of colonial Washington Washington want to isolate the Iranian banking system and as a result Iran Iran Iran Europe from itself, a place where few are capable of making decisions. We call that contagion and Iran Iran and the US
In Europe the past few weeks have been disastrous. Confidence continues to erode as the plunge protection team holds up markets and attacks gold and silver. Greece Greece
As we have seen recently even the elitists Super Congress Enabling Committee could not come to a conclusion on cutting US
In response to the economic situation, the European Commissioner for internal markets says, it will crackdown on credit agencies. These agencies are now finally doing their jobs and the commission wants to shoot the messenger. All they want is for the raters to create greater transparency and to explain their ratings. They went so far as to propose that raters be liable for financially punitive action when mistakes occur. What the commission wants is no ratings at all, so that they can operate in darkness. It complains about an S&P monopoly and that European downgrades should stop. These demands reflect the socialist-one-world attitude. If we can’t have things our way they should not exist at all. We know the attitude and culture; we lived there.
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