The International Forecaster: Federal Reserve

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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Saturday, December 3, 2011

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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Wednesday, November 30, 2011

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.

Saturday, August 13, 2011

IF Issue: Saturday August 13, 2011

Excerpts from the latest issue:

Bob Chapman - Financial Survival - August 12, 2011

http://www.youtube.com/watch?v=6yIfw-IR29A&feature=email

Bob Chapman - Radio Liberty - 08 Aug 2011 – Dr. Stan

http://www.youtube.com/watch?v=QVRHUbbp90U&feature=email

Bob Chapman - Financial Survival - August 10, 2011

http://www.youtube.com/watch?v=csqRf0iNfwc&feature=email

Bob with Kerry Lutz

http://tinyurl.com/Bob-Chapman-8-11-11

Episode 103: Live with Bob Chapman

By derekdreamer1

http://www.blogtalkradio.com/derekdreamer1/2011/08/12/episode-106-live-with-bob-chapman

US MARKETS

Markets have certainly fallen quickly. It was only on 12,721 on July 21 and now we are looking at a low close of 11.269 after a 500-point PPT arrangement. There is no question investors didn’t like the bill encompassing debt extension, nor the perceived cuts to be made. That was followed by a long awaited fall-in the debt rating of the US by the S&P. At the same time the financial and economic conditions in Europe worsen with Italy officially joining the ranks of near insolvency. These events were accompanied by calls for the president to bypass the Constitution or to use the 14th Amendment to bring about the debt extension. Under a façade of political wrangling as a cover the real impetus for the standoff became obvious. The whole exercise was not only about debt extension that could have been settled in 15 minutes, but about cutting individually paid for plans, such as Social Security and Medicare, which will eventually lead to a corporatist fascist dictatorship. This super-Congress is very reminiscent of the 13th century “Star Chamber”, the Soviet Politburo, or Adolph Hitler’s 1933 “Enabling Act.”

All and all the credit worthiness of the US government has been changed for sometime to come. Confidence no longer reigns regarding America’s fiscal condition. The US government, American citizens and corporate Americans have grown over the last 20 years not by increased production, but by the creation of money and credit and the borrowing and use of financial expediency. This condition was aided over the past few years by very low interest rates. The only exception being credit card lending by shylock banks. Whether Wall Street and banking realize it or not the transnational conglomerates with tax free incentives have all but destroyed America’s industrial base, and there can be no way back economically until that condition changes. That change can come about with the re-imposition of trade barriers on goods and services that served America so well for more than 200 years. If you look at the situation objectively you will see none of this happened by chance, it was planned this way.

There is little doubt that QE and stimulus 2 have been busts. They may have carried the economy this past year, but 1.3% growth is feeble when compared to the $1.8 trillion spent that we know about. Shipping rates for container ships are off about 10% during a peak time for usage. This leaves only one conclusion and that is trade is slowing down. Europe and Asia are seeing the same situation develop. These shipping rates reflected future business and coming on the heals of this GDP growth rates have fallen from 3.1% since December to 0.4% in March and the growth rate is still falling.

In Asia we have seen China and India increase interest rates a number of times, but like many other Asian countries they have far more inflation than they want. Some inflation is internally generated, but rates have been increased some 10 times to offset the inflation being caused by the monetizing of US dollars received from their exports. That has caused real inflation of more than 15%. The same is true throughout Asia to a somewhat lesser degree.

Europe is still mired in its own waste. They are frozen in the headlights. If they let the six problem countries leave the euro and go bankrupt their dream of a permanently united Europe will be over. Yet, the solvent participants now realize the cost of bailout collectively will be $4 to $6 trillion and that will render all the players insolvent. Like the Asians, Europe is paying an inflationary price for doing business with the US and England. Plus, they have been recipients of trillions of dollars from the US, which they haven’t paid back, to stay afloat. Germany and its citizens have vented their anger at the polls that they want out of this euro mess and the EU. They are tired of picking up all the bills.

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Wednesday, December 7, 2011

IF Issue: Wednesday Dec 7, 2011

Saturday, December 3, 2011

IF Issue: Saturday Dec 3, 2011

Wednesday, November 30, 2011

IF Issue: Wednesday Nov 30, 2011

Saturday, August 13, 2011

IF Issue: Saturday August 13, 2011