An excerpt from Bob Chapman's weekly publication.
November 27 2010: Koreas prepare for war, Fed beyond point of no return, silver manipulation charges, Ireland in economic collapse, pondering foreclosuregate, more Madoff fallout, TSA patdowns despised,
There is no question that the world is at a boil. Germany is drawing anger; N. Korea has attacked S. Korea; flaying about the FED’s Mr. Bernanke blames China for America’s sad economic and financial dilemma; five suits, class action and RICO, have been filed against JPMorgan Chase and HSBC for having manipulated silver prices and class actions are rumored to be in process for naked shorting, which has been rampant in the market for years, a felony hedge fund investigation of insider trading, which the SEC has absolutely refused to pursue. The US is still occupying Iraq and has a war raging in Afghanistan to protect the opium and marijuana crops, the largest in the world, which generate $300 billion in profits a year. Socialists, having recently relinquished power in the US House of Representatives are calling Republicans an axis of depression. The socialist, what they cannot control, they attempt to destroy. It reminds us of Italy’s communists.
The New Fed policy of QE2 is considered by US detractors to be a step too far. The Fed has entered the inner sanctum of realm of no return. If QE 2 and a hidden QE3 don’t work, then the monetary game is over. The Fed is in a desperate position and instead of letting depression take its course, the groundwork of which was caused by the Fed, Wall Street and banking, it is again rolling the dice intent on extending and buying time. If the Fed and its owners refuse to bite the bullet great inflation will ensue dependent on the size of QE2. If it were to stay at $600 billion inflation would increase. If the Fed is forced to increase the injection to more than $2 trillion there will be far more inflation. Unfortunately, we cannot depend on government statistics because government has a track record and propensity for masking the truth. There are those that believe that this is a monetary experiment and that it is not. What we are seeing has been tried in different forms for centuries, quite unsuccessfully. As a result, to thinking people, the Fed and Mr. Bernanke have lost most of their credibility, and that view is justified. Mr. Bernanke’s recent reference to “rebalancing the global economy” is just another effort to justify current monetary policy. What Mr. Bernanke is really advocating is a world balancing where countries with surpluses use those funds to assist those with deficits. He wants a global village where interests of individual countries must reflect the interests of the global economy as a whole. Of course, nowhere to be found is sovereignty in this planned redistribution of assets.
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Tuesday, November 30, 2010
Monday, November 29, 2010
Bob Chapman Silver should be over $50 already
Bob Chapman on the Sovereign Economist 24 Nov 2010
Bob Chapman wrote in the International Forecaster of the 27th 2010 "...In the US aggregate household net worth is $12.2 trillion lower today than it was three years ago at its pre-depression peak, a horrible decline of 18.5%, all in order to bring about the conditions to implement world government. That is about $100,000 per household. That money is never coming back nor is what was once known as the American dream and way of life. Baby boomers see it coming and denial is grudgingly becoming acceptance. The ratio of household net worth to disposable personal income has gone from 639% to 472% and it is still plunging. The savings rate, out of fear has risen from minus 0.5% to 5.5%, but still has to double from here to help get the economy going again. At the same time the Fed and Treasury are telling Americans to take on more debt. Homeowners equity has collapsed below $7 trillion from $13.5 trillion, making the situation worse – employment is off 7.5 million and full-time jobs are off 10 million, the worst numbers in 11 years. Real unemployment is 22-5/8%...."
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