IF-June 2, 2012

US MARKETS

With the recent late night announcement from China and Japan as to their plan to bypass the US dollar and trade directly in the yuan and yen, this will bring about significant consequences for the US dollar's reserve currency status. As usual the socialist media groups are doing their best to keep this out of the public eye due to future toil this could take on the already strained US dollar. As China, the worlds largest import/exporter along with Japan as a major trading partner with China's slow withdrawal from the US dollar it only adds to the demise of the US dollar as a fiat currency will be slow and methodical, the only safe haven will be gold and silver.

The US economy with all its money printing and how interest rates still remain lagging at best and with consumer confidence slowly declining, the avenue to QE3 is being smoothly laid. With that being said precious metals are severely undervalued given the relativity as to what is occurring in the world as to where their prices should be, don't allow an over manipulated precious metals market fool you into believing otherwise. With QE3 on its way, we should see gold prices fighting their way upwards pulling silver along with it.

The US housing market's ongoing weakness along with its recent fall in home sales by 5.5 percent to 95.5 the lowest levels since December thus far is disappointing at best and could be the signal for the beginning of a downturn in an already lagging market.

With the housing market being one of the US economies toughest hurdles to overcome during an attempt at recessionary recovery and millions of current homeowners being underwater on their homes forcing them to be extremely cautious with their spending habits thus far causing a severe holding pattern for economic recovery, adding fuel to the fire are the abundance of unsold properties and the continuing foreclosures as is evident with the mid week report showing contracts fell 12 percent in the western US, 6.8 percent in the south, slightly lower in the Midwest, and a slight rise in the northeast. Another factor overshadowing the recovery is the faltering application demand for refinancing US home mortgages; they decreased 1.3 percent in the week ending May 25th. As would be expected, the National Association of Realtors downplayed the declines in pending home sales.

Views on the labor markets deteriorated this month. The board's survey showed 7.9% of respondents think jobs now are "plentiful," down from 8.4% thinking that in April. Another 41.0% think jobs are "hard to get," up from 38.1% last month.

Confidence among U.S. consumers unexpectedly fell in May to the lowest level in four months as optimism about employment prospects faded.

The Conference Board’s index decreased to 64.9 this month from a revised 68.7 in April, figures from the New York-based private research group showed today. Home prices in 20 cities dropped in the 12 months ended in March at the slowest pace in more than a year, according to another report.

The share of Americans expecting fewer job opportunities in the next six months climbed to the highest level since November, raising the risk that consumers will limit spending. A 30-cent decline in gasoline prices since early April failed to brighten spirits, showing that more progress is needed in the job market.

“Gasoline prices aren’t doing the trick,” said Aaron Smith, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, whose forecast was closest. “We are making progress when it comes to the labor market, but clearly this is another sign that it’s still very slow going.”

Stocks gained after Greek opinion polls eased concern the country will leave the euro. The Standard & Poor’s 500 Index climbed 1.1 percent to 1,332.42 at the close in New York. Crude oil for July delivery on the New York Mercantile Exchange settled at $90.76 a barrel, down 10 cents.

International Forecaster: Jan 21, 2012

US MARKETS

           

If the entire financial system does not come down upon our heads and if we do not have another war, global growth is going nowhere in the year’s ahead. We had a mini-recovery, but it cost $1.8 trillion. We had a second recovery and that cost $1.5 trillion. We are entering a third of what is becoming yearly recoveries that will probably cost $1.3 trillion. In other worlds without these massive injections of money and credit we would probably be in a deflationary depression.

As a result of overspending and poor financial choices state, county and local governments continue layoffs, increase taxes, cut services and attempt to pay back unemployment loans from the Federal government by creating more debt, by floating additional bond issues. The people who run these governments just do not get it. They expect the next bull market is just around the corner and it isn’t. In 2014-2015 we can expect a housing inventory at banks of 9.8 million homes, all for sale. That guarantees no housing recovery for years to come.

The massive exodus of good paying jobs, one million a year, due to free trade, globalization, offshoring and outsourcing and the loss of 450,000 manufactures will soon end, as a number of countries debate trade barriers. Such protectionism will initially cut back on world demand and the expansion of world debt. Austerity is already a by ward and means restrained spending as well. Governments will become more onerous with additional regulation and taxes, because they have no intention of really cutting spending. We have been waiting for more than three years for debt reduction and saving and it has not as yet really materialized on an ongoing basis. We ask, are American consumers capable of reducing debt and savings? If they do will personal consumption of GDP fall from 70% to lower levels? The answer is of course it will.

Thus far Americans cannot or will not in any meaningful way reduce spending and we see that mode continuing with an absence of savings. In this regard the Europeans are cutting back spending. China’s export growth has fallen to a 2-1/2 year low and Europe is China’s largest customer.

Over and over again we see other professionals still recommending US Treasuries yielding anywhere from zero to 1.87%, while official inflation is 3.8% and real inflation is 11.6%. These buyers of Treasuries have to have some fierce pressure put on them to purchase such investments; some are predicting a 2-1/2%, 30-year bond and a 1-1/2% 10-year note. Those gains are fine, but they nowhere offset the inflationary risk. For 25 years bonds have outperformed stocks, but few money managers talk about the outsized returns in gold and silver related assets. That isn’t acceptable and probably never will be. Professionals going the income route may be able to return 5% or even 7%, but that is not sufficient in having to deal with inflation and the volatility of the market. Producing gold and silver mines are selling at 15 times earnings when they could sell substantially higher based on P/E and gold and silver prices. You are looking at very easy 50% increases. Just recently we recommended Pretium (PVG) at $6.00 and it traded up over $16.00 this week.

IF Issue: Wednesday Jan 11, 2012

Excerpts and links from the latest issue:

Bob Chapman - AROOSTOOK WATCHMEN - Jan. 4, 2012

http://www.youtube.com/watch?v=BkajAYzM_Kc&feature=email

Bob Chapman - Financial Survival - January 6, 2012

http://www.youtube.com/watch?v=lo1GgaRrfDY&feature=email

Bob Chapman on Where to expatriate in case Ron Paul does not win the presidency

http://www.youtube.com/watch?v=9KfFPrsBblI&feature=email

Bob Chapman - Gold Radio Cafe - January 6, 2012

http://www.youtube.com/watch?feature=player_embedded&v=uumAUmpQ-LM

The Stark Truth: Interview with Bob Chapman

http://reasonradionetwork.com/20120104/the-stark-truth-interview-with-bob-chapman

Interview 446 – Bob Chapman

http://www.corbettreport.com/interview-446-bob-chapman/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CorbettReportRSS+%28The+Corbett+Report%29

The Power Hour with Joyce Riley

http://archives2012.gcnlive.com/Archives2012/jan12/PowerHour/0109122.mp3>

Bob Chapman - Radio Liberty - 09 January 2012

http://www.youtube.com/watch?v=R3zbtDnl0ZE&feature=email

US MARKETS

           

The hand of the US elitists shows more each day in the decisions being made in Europe. Mario Draghi, ex-Goldman Sachs, Trilateralist and Bilderberg, is putting everything in place just the way the US elitists want. We are about to see full scale quantitative easing. One trillion in loans times fractional lending of 3 to 9 to whatever will give Europe the funds it needs indefinitely. Europe is going to be a rerun of what we have seen in the UK and US. In behalf of German voters who are 65% against such funding, Chancellor Merkel has refused to allow issuance of Eurobonds or an expansion of the EFSF. Draghi at the head of the ECB is now putting pressure on Mrs. Merkel to drop back to a more defensive position. The intrigue is at its height. If Frau Merkel gives into Draghi she and her party will not score well in the next election and may even lose political control. That could cause Germany to consider leaving the euro, which would destroy the euro zone. There are major dangers here and all the players are well aware of it. Agreement will take time and if it is not reached everything could short circuit, other than the fact that the Fed has put the funds in place. The other objective of getting Germany to whole-heartedly accept the bailout and stimulation is another matter. Confusion reigns even among the participants. The US, UK, France and their front men, Draghi, Monti and Papademos are all moving forward. The price will be very high from an inflationary standpoint, but to the elitists that isn’t even a consideration. They could care less. That is why you want to have your assets invested in gold and silver related assets. We could be headed toward another Weimer episode.

What we are seeing worldwide is another expansive use of money and credit creating better known by the euphemism, quantitative easing. In June, the Fed will announce its latest version that has been secretly underway for the past few months. The Fed is the instrument of liquidity, because it is appointed. By using the Fed everyone’s covered politically. That lets the political types slide into the election not having to be worrying about finances and the economy. It will all be designated the Fed’s fault. This will do the Fed lots of damage. If Ron Paul is elected president these actions could lead to the Fed’s demise. Long-term unemployment is still about the same and the housing situation is worsening, not improving. U-3 unemployment figures at 8.5% are almost meaningless. It is U-6 that counts less of course the birth/death ratio and that is 15.2%, or real unemployment of 21.5%.

This past week the euro hit its lowest level versus the dollar in 15 months. Investors certainly see the short-term positives of more than a trillion dollar injection to the banks and sovereigns of Europe, but they are looking beyond that. They see major long-term damage to the euro caused by this massive injection of new liquidity. Unless there is a breakdown in Greece, or another European sovereign, the euro should make it in 2013. That may be so, but banks that just borrowed $850 billion from the ECB have re-deposited $587 billion of those funds back with the ECB. That means only $263 billion was used in other ways, or about 15%. Normally banks would lend overnight to other banks, lending banks do not trust other banks, hence, the massive deposits at the ECB. The lending is for three years or less at 1%, but this program may go on indefinitely as perhaps the programs in the UK and US will as well.

In addition to this really open ended financing many countries are rushing to sell bonds, as $90 to $100 billion has to be refinanced in Europe. That is $203 billion in just the first quarter.

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IF Issue: Saturday Jan 7, 2012

Excerpts and links from the latest issue:

Bob Chapman - USAprepares Radio Show - Jan. 3, 2012 w/ Vincent Finelli

http://www.youtube.com/watch?v=zErRadDnHQw&feature=email

Freedom Files with James Burns

http://youtu.be/VwjqfTt8Yns

Interview 441 – Bob Chapmanhttp://www.corbettreport.com/interview-441-bob-chapman/
http://www.corbettreport.com/mp3/2012-01-02%20Bob%20Chapman.mp3

Clay Douglas – Free America – Bob Chapman

http://www.blogtalkradio.com/claydouglas/2012/01/06/free-american-hour

Bob Chapman - Gold Radio Cafe - Jan

http://www.youtube.com/watch?v=uumAUmpQ-LM

US MARKETS

The campaign for Republican Presidential nomination is far from over. We saw steady campaigns by Ron Paul and Mitt Romney, who received 24% and 21% respectively. What we are yet to fathom as to how Rick can come from 3% in the polls to nearly tie as winner at 24% by 8 votes. We changed channels and found Mr. Romney won by 8 votes. Neither is important. What is important is that Mr. Santorum will have to explain his miraculous recovery. We now have three men who could easily become the nominee. Mr. Santorum did exceedingly well and Ron Paul proved he is in the fight to the end and is being recognized as presidential timber.

There is more information regarding the Iowa election by others within the publication.

Irrespective of the trillions of dollars thrown at the US economy since 2006 there is no evidence that long-term solvency or recovery has been achieved. The debt that has been added and created means we’ll see higher inflation and perhaps hyperinflation. Comments by administration officials last week that if necessary the dollar will be crushed, are hardly comforting. Remember, just a week before Fed Chairman Bernanke said to Congressmen that the Fed was not going to lend Europe money to bail their members out and one week later we have a $1 trillion swap, loan program to bail Europe out. There is no effort at all to prevent eventual insolvency; as a matter of fact we believe that if Europe’s problems were not on the front burner the dollar would be selling at lower levels, a reflection of solvency issues. We should know better by the month of May how Europe stands, and if their situation is even short-term positive you can expect the dollar to head lower, not only versus the USDX but versus gold and silver as well.

Yes, the US economy will hold its own this year with more lending by banks to small and medium companies, which creates 70% of jobs. This effort rose 10% in the last five months of the year. The Fed is buying toxic mortgage bonds from banks to give them liquidity to purchase Treasuries, Agencies and to speculate in the markets. We do not know what leverage the banks are using, 7 to 1 or 32 to 1 - we will find that out later because they won’t tell us now. Then the economy will get the slosh over from the $1 trillion plus being created and used to keep Europe afloat. That means US GDP could range from plus 1-1/2% to 2-1/2% in 2012. The street saw slight growth, but the newsletter writers have been caught flatfooted. This kind of Fed manufactured growth comes in part from money and credit creation and that does little to help long-term debt problems. The Fed’s only concern is to keep the financial system safe and functioning, particularly in the US, UK and Europe. Extend and extend until you cannot extend anymore. These Wall Street and fed types that run around telling the world inflation is easing are just plain liars. We predicted last year that unemployment would stay about the same, and it did due to governmental layoffs at the state, county and city levels. And the federal government hired to offset that. Having made cuts now these entities are selling municipal bonds to cover the rest of their shortfalls. They still refuse to cut sufficiently to balance budgets and offset ongoing major losses. We expect many states and municipalities to continue this mode of operation, which will eventually bury them.

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IF Issue: Wednesday Dec 28, 2011

Excerpts and links from the latest issue:

Bob Chapman on Liberty Coin & Precious Metals Radio “America is Doomed if Ron Paul is Not Elected”

http://libertycpm.com/2011/12/bob-chapman-on-liberty-coin-precious-metals-radio-america-is-doomed-if-ron-paul-is-not-elected/

Bob Chapman "United States is doomed if we don't elect Ron Paul prt 1

http://www.youtube.com/watch?v=7kQU-lwCg2s

Bob Chapman - Radio Liberty - December 19, 2011

http://www.youtube.com/watch?v=bj7_JfZKXs8&feature=email

CHAPMAN: How Do We Fix What Ails Us? ELECT RON PAUL

http://www.youtube.com/watch?v=bSA6Kh0u9LI

Freedom Files with James Burns

http://youtu.be/EQctzz_RXjs

Bob Chapman - The Sovereign Economist - 23 December 2011

http://www.youtube.com/watch?v=fDrC8ELBUQ0&feature=email

Liberty Talk Radio!! with Economist Bob Chapman!!

By Alex Horbol

http://www.blogtalkradio.com/libertytalkradio-alexhorbol/2011/12/23/liberty-talk-radio-with-economist-bob-chapman

Bob Chapman - USAprepares Radio Show - December 20, 2011

http://www.youtube.com/watch?v=LU7w9qrrpy4&feature=email

US MARKETS

The game goes on, as German leadership tells us the euro is stable, even as it hits yearly lows. We are told the problem is a crisis in several member states. That may be true, but they all are inseparable. The reassurance from politicians and bankers to calm the market place is beginning to fall on deaf ears. No matter what the cause of the debt crisis it exists and leadership as yet cannot find a solution. Even short-term solutions, such as the use of the EFSF are not going to work. All they will do is gain time. In that process, what happens if France’s credit rating is cut one or two levels? How can France then continue to participate? The present French government has buried the government in losing investments, which we believe in June will force the electorate to choose the Front National to solve national problems. The public, as in most other countries are sick and tired of lies and incompetence from politicians, bankers and bureaucrats possessed with the creation of world government. At this point confidence in the euro is hanging by a thread and Europe’s leadership doesn’t know how to solve the problem. We have seen such crises of confidence often over the past 15 years. It is not unique, but the size of the euro zone is compelling, because the crisis touches so many people. Currency is the vehicle to bring about a solution, but if confidence is lost the currency cannot perform part of its role as monetization continues unabated, confidence continues to fall and inflation as a result flourishes.

It is not that EU leadership doesn’t want a solution; it is that there isn’t a solution, other then to purge the system. In that environment the politicians, bankers and bureaucrats have their power to control the people taken away from them and the citizens take back their countries and their liberty and freedom. The euro has been an unnatural experiment implanted as a nexus for world government. We predicted this in 1992 and nothing has changed. We expected failure and we now have that failure. After years of leveraged profits for the insiders the public is left with unpayable debt.

The debt bomb began with Greece, Ireland and Portugal. It has been followed by Belgium and now Italy and Spain. We see new commitments for bailouts, but will the funds materialize. We are talking more than $1 trillion and that will entail more bank reorganization that is bailouts. That is governments and the public, bailing out the banks again. The debt loads are enormous for sovereigns as well as bankers. European politicians and economists realize six sovereigns are in serious trouble for at least $6 trillion. $4 trillion will be need for Italy and Spain alone, that is just to keep them going sideways. To our way of thinking Greece is a black hole and after elections we believe it will finally default to be followed by Portugal, Ireland and Belgium. We can understand why the sovereigns are so concerned with the group of 6 and the stability of the euro. This is why, without fanfare and very discreetly the Bundesbank, loaned the ECB $644 billion. That is a very large sum of money even for Germany. This transfer loan has been listed under Target 2. We understand why the funds were needed, but will the German public be happy with the program? Remember, 65% were and are against such further programs.

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IF Issue: Saturday Dec 17, 2011

Excerpts and links from the latest issue:

Bob Chapman - The National Intel Report with John Stadtmiller 2011.12.13

http://www.youtube.com/watch?v=HEOEEFTEABQ&feature=email

Bob Chapman with Kerry Lutz 12/14/11

http://www.youtube.com/watch?v=xHG06mj1ppI

Bob Chapman - Financial Survival - December 14, 2011

http://www.youtube.com/watch?v=jnz9gDiTK5M&feature=email

Bob Chapman on Freedom Files with James Burns

http://freedomfiles.us/

http://youtu.be/waXBkss4xg0

FFw/JB Podcast (12/15/2011): Bob Chapman

http://www.youtube.com/watch?v=waXBkss4xg0&feature=youtu.be

US MARKETS

           

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. That growth was $557 billion, of at a 14.1% annualized rate. Of course, what the federal government is doing is the antithesis of what they should be doing. Will these borrowings and debt continue, of course they will.

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 bank branches has been wild and the Fed has done its best to obscure what they are up too. It looks like these foreign bank balances grew about $2.6 trillion.

The result is that pressure was relieved in Europe and the US went sideways in spite of massive increases in money and credit. Fed issuance is in a bubble and it is only a question of when it pops. It is not surprising that the American public believes we are headed in the wrong direction, some 70%. Only 39% approve of the administration’s financial policies. The GOP frontrunner Gingrich, if he ran against Obama today would lose 50% to 41%. It shows you how dumb Republicans are. Nominating a crook who is a guaranteed loser.

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 by invoking sanctions. This is under the guise of Iran supposedly having nuclear weapons, which is a figment of colonial Washington’s imagination. The elitists in Washington want to isolate the Iranian banking system and as a result Iran is preparing to shut off 40% of the world’s oil by shutting the Straits of Hormuz. The reason added to these actions by Treasury Secretary Geithner is that Iran is a primary money launderer. We see Iran’s being cut off from western banking providential, considering the state of western banking today. The Fed and the IMF are again scurrying around trying to save Europe from itself, a place where few are capable of making decisions. We call that contagion and Iran could be spared that. The drones are being shot down over Iran and the US keeps sending them. Next it will be air combat where the loss of life and equipment will be high.

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 continues in a standoff until there are February elections. If there are no elections nothing will ensue in a big way. Greece refuses to reduce sovereign debt and take any more austerity cuts. What all these masters of the universe don’t understand, or want to understand, is that Greek debt, in fact almost all debt, is unrepayable. What all governments have done by raising massive amounts of debt has frozen the productive private sector out of the market. The exceptions are AAA rated companies, almost of which just happen to be Illuminist run. Government spending is generally non-productive.

As we have seen recently even the elitists Super Congress Enabling Committee could not come to a conclusion on cutting US government debt. It shows you even under controlled circumstances that the kept Congress will not at all commit themselves to any kind of austerity.

Europe is about austerity and debt. The big question is will the Bundesbank take the easy way out? Will they print their way out now that selling bonds is difficult? Of course either printing or bonds or money is an answer or solution to the problem. Worse yet every currency is fiat and loaded by nothing and they are all unconnected. They call that spreading the misery. Growth is falling into the minus category, as Germany shows a third month of falling manufacturing orders.

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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IF Issue: Wednesday Dec 14, 2011

Excerpts and links from the latest issue:

Corbett Report Radio 029 – Talking History with Bob Chapman

http://www.corbettreport.com/corbett-report-radio-029-talking-history-with-bob-chapman/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CorbettReportRSS+%28The+Corbett+Report%29

Bob Chapman - James Corbett Interview - Dec. 10, 2011

http://www.youtube.com/watch?v=TDTf1c-eb7U&feature=email

Interview 431 – Bob Chapman

http://www.corbettreport.com/interview-431-bob-chapman/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CorbettReportRSS+%28The+Corbett+Report%29

Bob Chapman - Blogtalk Radio - December 9, 2011

http://www.youtube.com/watch?v=ylGGS1eP0ow&feature=email

The Power Hour with Joyce Riley

http://archives2011.gcnlive.com/Archives2011/apr11/PowerHour/0426112.mp3

CHAPMAN: MF GLOBAL & CFTC, The Fall of Europe & THRIVE

http://www.youtube.com/watch?v=SoBe9XJiJK4&feature=email

CHAPMAN: PAPER VS. PHYSICAL, END OF THE NWO & RISE OF RON PAUL

http://www.youtube.com/watch?v=dPfbj4-hnCg

Bob Chapman - The Financial Survival - 12 Dec 2011

http://www.youtube.com/watch?v=OOBbhCjjtmg

Bob Chapman - Radio Liberty 3rd Hour - 12 Dec 2011

http://www.youtube.com/watch?v=3HdaRIDd5hQ&feature=email

US MARKETS

After watching Europe’s performance last week the only thing they really were after was an ESM, European Stabilization Mechanism, to tie down all EU nations to a tighter regional set up. As it turns out England and others did not agree. Britain obviously does not want to become part of a new treaty that deprives them of their sovereignty. This regional government concept appeared in the early 1960s and is now going to be pushed in Europe with the US to follow. Our question, is England just trying to protect the advantages of the “City of London,” or is the disagreement deeper than that? A new treaty will take two years for ratification, but in the meantime an agreement will hold forth on what can be called a handshake. Evidence is still out on whether this is an attempt by Germany to break up the euro zone and the EU or a genuine effort to set up a platform for world government. We know that since WWII that the internationalists have been setting up Europe as the foundation for world government. On the other hand we know that 65% to 70% of the German people want no part of it from any standpoint.

The main players in the end treated the debt crisis as a secondary problem, probably because the Federal Reserve had it covered for them. The only main player that displayed real nervousness was France’s Sarkozy. France had to have its banks bailed out and had to avoid one or two rating downgrades. Not only would those downgrades entail higher costs, but also they would impair France’s ability to help bailout the six unsound economies. The Fed is bailing out French banks short-term. Once the situation is more stable American short-term bond buyers will return and the Fed can concentrate aiding in other areas. That, of course, is if stability returns. Bailouts can only emanate from central banks and governments and any such operations in and of themselves are inflationary and if persistent will lead to hyperinflation.

This means all of the banks in the solvent countries will have to be nationalized, all or in part. At the same time these same banks and countries have to bail out the dreaded six countries. That will be a tall order, as some are not even cooperating. That could mean three or more of these countries could default leaving sound countries and their banks with big holes in their balance sheets. Overall none of this has been solved, because France and Germany were more interested in changing treaty rules than addressing the debt problem. These massive bailouts are on the way for the sound and the unsound, accompanied by higher inflation. Needless to say, all of this solves nothing on the short to intermediate term. It is another temporary respite. All we see is avoidance. Von Mises has told us only purging the system works. The bankers, politicians and bureaucrats do not want to see that happen, because the key to their power lies in the banking system and once purged their power is lost and countries are free to survive on their own. That is why the world has wars to keep the elitist bankers as our overseers. Under such circumstances nations are forced to amalgamate to bring order and to provide for the common defense. None of us are on the inside, so we do not know which avenue will be taken. Both choices mean lots more trouble ahead. The EU and the euro zone structures do not need to be changed, but the debt problem certainly needs to be addressed.

The quest for more power via the ESM is obvious to those in favor of world government. There will be nothing democratic about the ESM and most players will be appointees. Someone should tell these elitists bigger is not better and that more than half of Europe knows what they are up too. Whether it is called the EU, or Soviet Union, National Socialist Bund or the North American Union, they are all the same. They are totalitarian governments within one form of socialism at its core. This is government by appointment and regulation, which has no intention of letting the public participate. Every move or change will require no input from the people, only edicts from above.

That brings us to the position that England has taken. PM David Cameron is an elitist and one directly chosen at the Queen’s request. His position at last week’s meeting was surprising as he wanted guarantees of protection for the “City of London,” which supplies 40% of London’s jobs and 10% of jobs in England. This is the gang that was deeply involved in Bear Stearns, Lehman Bros., AIG and the Madoff scandals.

Among other things, Britain has objected and threatened to veto any kind of tax, even 1%, which on a compound basis would be far higher. Cameron believes this would cause financial sector business to move to Frankfurt. This rebellion within the EU ranks has far reaching implications. Cameron is no conservative and is part of the elitist operatives; obviously few of these characters trust each other. This is why England never committed to the euro. Cameron’s action has finally set Britain apart from the EU, never to join the euro, and cuts England off in part from the attempted consolidation on the Continent. That means it will have difficulty in fronting for American interests, and such interests will become more transparent.

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IF Issue: Saturday, Dec 10, 2011

Excerpts and links from the latest issue:

Bob Chapman - James Corbett Interview - Dec. 5, 2011

http://www.youtube.com/watch?v=ghVE5RoYaL0

Interview 424 – Bob Chapman

http://www.corbettreport.com/interview-424-bob-chapman/

Bob Chapman - Radio Liberty - 05 Dec 2011

http://www.youtube.com/watch?v=gB_GXPCQTK8
http://www.youtube.com/watch?v=c6hpE2kVHpM
http://www.youtube.com/watch?v=R0qM-WRF49s

Bob Chapman - RealNewsRadio - December 3,2011 http://www.youtube.com/watch?v=DIHgRWzAUKA

Bob Chapman - The National Intel Report 2011.12.06

http://www.youtube.com/watch?v=WC1KblhJvFo&feature=email

FFw/JB Podcast (12/8/2011): Bob Chapman

http://www.youtube.com/watch?v=6IXFvTXjuG0&feature=youtu.be

US MARKETS

As we reach back into modern European history we see the unnatural amalgamation of 27-European countries, all of which are socially and culturally different. From our point of view the union was doomed from its inception. We lived for years in central Europe, spoke their languages and had a powerful outsider’s view of their cultures. Europe’s inhabitants generally were convinced that the union would prevent future wars and bring peace to Europe. Unfortunately, all they did was trade Perfidious Albion, Hitler and Mussolini for the Trilateral Commission, Bilderbergs and Goldman Sachs and JPMorgan Chase. The same gang that financed WWII from both sides. It is important to understand the real history of Europe, not that fed to us in universities, where almost solely the victors write the books. As you know there are two sides to everything.

There are not only 6 sovereign nations that are insolvent, but because of the interconnectivity created by the EU and the euro zone the financial misery has spread to otherwise solvent nations. They bought the debt of 6 sovereigns and it was proper that they do so. For France, as a result, they may face a double downgrade in their debt ratings.

We continue to hear that the ECB purchased all the bad debt of the banks and sovereigns to clear the decks, but under present treaty the ECB is specifically prohibited from doing so. That is why US Treasury Secretary Geithner is in Europe this week. He is to show Europe the error of its ways, change the treaties and model the ECB after the US Fed. The players won’t solve any long-term problems, but it will give Europe and the ECB the leverage to work its way through today’s problems, and as a result create some fierce inflation. The later to them is the less of two evils. The players are now all well aware that existing debt to be neutralized is at least $6 trillion and if austerity is not followed the numbers will be higher. The European economies are now falling into recession and austerity could take Europe into depression. Remember, tax revenues will fall and impair the debtors’ ability to service their debt. It now becomes clear looking at the facts that the US and Europe all have similar problems, they are all broke, along with the major banks and they know full well money and credit creation will not solve their long-term problems. The game is being moved in this direction, because there is no other direction it can be moved into.

That is why European and US leaders are attempting to change the treaties to accommodate the money and credit creation potential of the ECB.

The issuance of new Eurobonds being created to restore long-term solvency is a non-starter, as opposed to changing the rules for the ECB. Both concepts just throw debt into the future, some 50 or 100 years away.

The concept being pushed as hard as the ECB becoming the Fed of Europe is the coordination of economic policies by a committee of 8 bureaucrats and 17 Secretaries of the Treasuries from the euro zone countries. These individuals would make all budgetary and fiscal choices for all 17 countries. In such a process each country would give up its sovereignty to a small group of bureaucrats devoted to the formation of World Government.

The alternative is to abandon the euro and the euro zone, which we believe is the real answer. Write off the bad debt and get on with life. Germany could be headed in this direction. We will know as we publish this weekend if there will be a new direction. The solutions offered are really those of the US and UK. The question is will the Europeans accept them? We do not know, but we do know that Germany and the Bundesbank will not accept any blame, after all those years of sacrifice to make everyone happy. Those days are gone forever. On the other hand is Germany trying to readopt the Deutschemark? We will have a better view after the weekend. Keep in mind 65% of Germans want out of the euro, out of further debt guarantees and many want out of the EU.

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IF Issue: Wednesday Dec 7, 2011

Excerpts and links from the latest issue:

Bob Chapman - Sovereign Economist - November 30, 2011

http://www.youtube.com/watch?v=obdz4JmM6CE&feature=email

Bob Chapman - Sovereign Economist – November 30, 2011

http://www.youtube.com/watch?v=obdz4JmM6CE&feature=email

Bob Chapman - Financial Survival - December 2, 2011

http://www.youtube.com/watch?v=LYDV0EborkY&feature=email

Bob Chapman on the best places to Expatriate to

http://www.youtube.com/watch?v=YM2kb2D6_SU&feature=email

Bob Chapman/Liberty Radio

http://www.youtube.com/watch?v=vLsVv_EOZVc
http://www.youtube.com/watch?v=4Mqi8bqcyw0
http://www.youtube.com/watch?v=ugJ2CBPQWPQ
http://www.youtube.com/watch?v=MeBUt6_934I

Bob Chapman - RealNewsRadio - December 3, 2011

http://www.youtube.com/watch?v=DIHgRWzAUKA&feature=email

Interview 424 – Bob Chapman

http://www.corbettreport.com/interview-424-bob-chapman/

Bob Chapman - The Financial Survival - 02 Dec 2011

http://www.youtube.com/watch?v=74KD5ThpDGY&feature=email

Bob Chapman - The Financial Survival - 05 Dec 2011

http://www.youtube.com/watch?v=QkptXrNGkQg

US MARKETS

Even the middle of the road journalists are beginning to question Europe’s elected and appointed leadership. This past Monday the plan for the euro zone was laid out for a final capitulation to world government. The financial crisis has been handled from behind the scenes by the Fed, so that Germany’s Chancellor Merkel and France’s President can concentrate on more important matters, namely the final federalization of the euro zone to be followed by the entrapment of the remainder of the European Union.

The calls for major changes to the current treaties have little to do with the debt crisis. What these two emissaries of the world elitists are up to is to tear down the legal strength of monetary and political union of this unnatural association, and replace it with a stricter budgetary discipline known as the ESM, the European Stabilization Mechanism, this ostensibly to support countries in difficulty. Within this major change is a complete shift away from the original Maastricht and Lisbon Treaties, which is being done without the consent of the public in these countries. There is one exception to that in the case of Germany that must approve the changes.

On the 9th the final proposals will be laid out and agreed upon by various heads of state, some elected and some appointed. This “leadership” could care less what the people of these countries think. There are no trappings of democracy here, just the iron fist of Illuminist world ambitions. Any thinking, sophisticated person has to look on in disbelief at what is about to take place.

The plan is to have a committee of 8, assisted by 17 immunized finance ministers control the budgeting and fiscal policies of these 17 nations, which strips them of their sovereignty.

We read writer after writer and they do not have a clue as to what is being done to the people of these nations. They don’t know these appointments are all members of the Trilateral Commission, Bilderbergers and former Goldman Sachs employees. If they do know they are ignoring its significance. This is where Messrs. Draghi, Monti and Papademos all came from appointed to take the euro zone and eventually the EU into world government.

We have studied these characters for more than 50 years and we know exactly what they are up too. It is the job of these 3 Sherpas to continue to advertise the increased risk to financial and economic conditions, if such treaty changes are not made. This is a charade to mislead and misdirect the people offering them the only way out. Unfortunately, as far as we know, our voice is the only one being heard in exposing the real intent of what is being pulled off. There is no question that there is an economic and financial debt crisis, but these treaty changes have little to do with that. Their key phrase is price stability when real EU inflation is running more than 7%.

Since July the ECB has refused to expand money and credit. A month ago control passed from the hands of Trichet to Draghi, who immediately lowered interest rates, which we predicted he would do - no one else made such a call. The ECB still hasn’t printed euros, but the Fed is going so in its stead. The ECB is buying Italian and Spanish bonds, but only about $20 billions worth. The ECB, known to few, has been sterilizing its sovereign debt buying by draining an equivalent amount of euros from the banking system. This is the antithesis what central banks do. The Trichet ECB wanted their actions not to create inflation. This is why inflation has held so well in Europe. That is all about to change as the FED takes over. The funds to purchase bonds and supply liquidity will be available to jump start Europe as inflation climbs.

All of the players knew austerity plans play well and eventually work to tear down an economy, but short term they are a loser. The only thing that works is more and more money and credit. Who wants to stop economic growth. Up until Draghi took over the euro has not been wantonly destroyed. Just be patient Draghi will end all that.

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IF Issue: Saturday Dec 3, 2011

Excerpts and links from the latest issue:

BOB CHAPMAN/KERRY LUTZ

http://traffic.libsyn.com/kerrylutz/Bob_Chapman_12-1-11.mp3

Bob Chapman - The Financial Survival - 30 Nov 2011

http://www.youtube.com/watch?v=vKQLDyYudis&feature=email

Bob Chapman - The Power Hour - November 28, 2011

http://www.youtube.com/watch?v=6-2dklE4TN8&feature=email

US MARKETS

Do we need central banks at all? It’s a good question. We have had the Federal Reserve since 1913 and their management has been a disaster for Americans and a wealth builder for its owners, the Wall Street banks. It has also allowed the financial sector to control our country. It is the seat of elitist power. The Fed has debauched the US dollar via their monopoly and enriched their owners beyond belief. Any entity that has to resort to the subterfuge of using a cloaking term, such as quantitative easing has to be a scam.

The Federal Reserve and other central banks were created to inflate currencies thereby depreciating them and in that process the owners of the Fed and their colleagues’ reaped enormous profits. Entities like the Fed have been doing this for centuries. You might say such a monopoly leads to currency debauchery. Reflecting on such a track record there is no reason to have central banks. A federal Treasury is all that is needed. Not that it is perfect, it is no worse then having a privately owned central bank. We have suffered under the Fed since 1913 and it is time to terminate the Fed and return our monetary authority to the US Treasury.

In the latest turn of events the Fed has mastermind another rescue in conjunction with the ECB. Europe hurting for cash, particularly US dollars, brought England, Japan, Switzerland and Canada and ECB into their latest money creation scheme. They will lower prices on dollar liquidity swaps on 12/2/11 and extend these swap subsidies until 12/01/13. What has happened as we pointed out previously is that US money market and pension funds dropped participation in short-term bond markets in Europe from 55% of assets to about 20% of assets. That meant European banks couldn’t function. The eventual outcome would be no dollar investments in Europe until their financial house is put in order.

In addition there are on again off again stories that the IMF has been talking with Italy and Spain. Both sides deny it and behind the scenes we are told talks have in fact been going on for weeks.

We can assure you that the dollar swap is really all coming from the Fed. England and Japan are probably window dressing and Switzerland and Canada may participate. This is a Fed operation. What confuses the public is misdirection engendered in utterances by policy makers. There is absolutely no coordination, which belies confusion, which leads to lack of belief in any statements. Again, the problem is not liquidity, but solvency. They are all broke and reorganization would take years to accomplish. They cannot do what they should do, and that is purge the system, because they’ll lose control and that is the key and seat of elitist power. If they do the right thing the public will then discover what they have been up too and they’ll end up where they belong, in jail.

These dollar loans will be run through the ECB, the European Central Bank, giving euro zone banks direct access to dollars. It is all subterfuge in order to continue the force short term. Additional liquidity is a stopgap measure, which not only deceives, but also is injurious in the long run. The result is the Fed will continue to prop up European financial markets with no solution in sight moving from one calamity to another until the systemically insolvent conditions take the system down. These players have many things they can pull yet, so don’t think the system can fail soon. It could take several more years and the result will be inflation, hyperinflation and higher gold and silver prices.

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IF Issue: Wednesday Nov 30, 2011

Excerpts and links from the latest issue:

Bob Chapman - Sovereign Economist - November 23, 2011

http://www.youtube.com/watch?v=s2LWjuX77CI&feature=email

Bob Chapman – Ralph Evans

WORLD FINANCIAL COLLAPSE - WWIII & Bankers Demise

http://www.youtube.com/watch?v=s1i6mVTPgWg&feature=email

Interview 418 – Bob Chapman

http://www.corbettreport.com/interview-418-bob-chapman/

Bob Chapman - The Financial Survival 28 Nov 2011

http://www.youtube.com/watch?v=YPU0G0z1paw&feature=email

Dr. Deagle Show 111123 1/3 - BOB CHAPMAN

http://www.youtube.com/watch?v=iqfIQmUJ1c8
http://www.youtube.com/watch?v=c0GzNM6o1Ck
http://www.youtube.com/watch?v=Ch-ELZ2z6VA

Bob Chapman - Radio Liberty 28 Nov 2011

http://www.youtube.com/watch?v=-144GuRT1h8&feature=email

US MARKETS

           

Except for the MF Global scandal Europe still stands at the forefront of world debt problems. Up until now little has been accomplished toward solving these problems and the traditional Christmas season is upon us, which stretches from December 7th, to January 10th, a period in which very little will be accomplished.

It is reminiscent of last summer. The only thing that the elitists have accomplished is the placement of Bilderbergs as the head of the ECB and the appointments of two more as PM’s in Italy and Greece.

Over the last ten years we saw all debt grow, but in particular among the southern members of the euro zone. The imbalance was predictable, but the northern countries just ignored the problem. Those in the north blamed the difference on culture and work ethics. Thrown into the mix was government and banking profligacy and growing lack of competitiveness. All of that was true, but it did not alter the fact that great imbalances existed and still exist and that certainly contributed to the underlying non-competitiveness.

Financial mismanagement certainly had a profound effect in the six countries in serious trouble and you can also include France in the group. The problems were also compounded by the wild growth of indebtedness lorded over the banking community. The latter just loved one interest for all. The banks were particularly the blame in Ireland and Spain where unnecessary building went absolutely berserk. Through this period, Germany and the Netherlands, in particular, couldn’t lend money fast enough to those who shouldn’t have been borrowing it. This, as we reflect back, it was malinvestment, a misallocation of capital instituted by the banking community, which was leveraged about 70 to 1. We continue to ask what could they have been thinking of? The performance of the banks was at the very core and heart of what we see today.

Two to three years ago Germany reached the conclusion that this could not continue and they attempted to Germanize Greece and to instill discipline. That ended up being unsuccessful, due to the great cultural differences. That brought about the EFSF, which provided loans to those countries that were unacceptable to the bond market. This, of course, was just another effort in avoiding reality. The northern Euro Zone members want to continue to export to these countries, but they cannot do that and that is why they have no money. They are finding that collectivism doesn’t work. There is no such thing as collective responsibility. These new world order geniuses forget that when you have austerity GDP falls and you have a recession. In addition, it also brings about added inflation, which had and has the ECB very concerned, because their mandate is to keep inflation in check. This then has put the ECB at cross-purposes.

This points out why the ECB does not want to act as lender of last resort to governments. The six nations in trouble have been forced kicking and screaming to accept austerity government changes and to reveal the terrible condition that their banks are in. Greece, as an example, went into the stage one bailout and austerity, which forced revenues lower and the ability to pay interest lower as well. Wages were cut 40%, government wanted to take licensees from taxi drivers and turn their businesses over to a Germany consortium, which forced the largest demonstrations to date. We wrote more than two years ago that Greece should default, return to the Drachma and straighten their economy out. No one wanted to hear that and now the situation is much worse.

We have six countries on the ropes. Contagion has set in. Stress tests are a scam and meaningless. Dexia passed with flying colors and two weeks later went bankrupt.

Due to outright lying by bankers and politicians money is going to be much harder to raise in the future. If Germany’s auction was real last week, and if they could only raise half of what they wanted to raise, how can those in trouble believe they can raise any funds at over 7% on 10-year bonds?

The simple solution is to end the euro, a poorly thought out experiment; which its creators thought would become a one-world currency. If currencies are managed properly, central banks do not need to be a lender of last resort. All the lender does in creating money and credit out of thin air is inflate away excesses by the bank and fiscal policies. A cap of 3% annually in central bank monetary creation will bring only limited inflation and allow for growth.

A break up of the euro zone does not have to be disorderly. Every two months, over a one-year period, one of the six nations can be allowed to leave the euro in full default. The second year the remaining 11 members can decide whether they want to keep the group together, or return to their original currencies. This is essentially what 65% of German citizens want.