buy gold. buy silver. just 4 yourself!

  1. dub
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    Sorry, couldn't be bothered to colour, highlight, stage the following.

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    You should.



    International Forecaster October, 2005 (#2) - Gold, Silver, Economy + More

    By: Bob Chapman, The International Forecaster


    OCTOBER 2005 (#2) Vol. 9 No. 10-2

    P. O. Box 510518, Punta Gorda, FL 33951-0518

    An international financial, economic, political and social commentary.

    Published and Edited by: Bob Chapman

    E-mail Address

    [email protected]




    The US and global economies are facing one of the worst economic and financial crisis’ in history. Since 1989, there has been a misallocation of resources due to interference and manipulation of markets by governments in tandem with transnational conglomerates. There has been little natural allocation of resources via the market. Organized government interference has distorted every market and every pricing mechanism. The manipulation is just not in the value of the dollar and interest rates; it crosses a wide range such as gold, silver, some commodities, foreign markets and the sale of debt securities. The US Treasury and the Federal Reserve, in league with other cooperating central banks, are attempting to micromanage every world economy.

    The latest move by the Japanese to privatize the Postal Savings Plan of $4 trillion is a good example. The Japanese government is essentially a subsidiary of our Federal Reserve. The printing of local currency to purchase US Treasury securities to devalue third world currencies is another ruse to keep inflation low in the US. In just 2003 and 2004, mainly Asian central banks printed about a trillion dollars, which increased the global money base more than 60% in 2005. If you add what the US has printed, about 10%, and its extension of credit you are looking at probably $2 trillion a year. The greatest expansion of liquidity in history for five years, and it’s expanding. Subsidized low prices create unnatural excessive demand, which creates more manufacturing investment that in time will lie idle. This is what has happened throughout Asia. In the US, a manipulated relatively strong currency and ridiculously low interest rates have created bubbles in real estate and consumption of imports. The American consumer’s low wage gains and insipient inflation have led to colossal debt and a minus in savings. Consumers have to borrow against assets to continue to economically survive.

    All of the above have set the stage for hyperinflation. It is the only path open to the Fed to keep the system from collapsing. A consumption borne society. An economy where consumers constitute 71% of GDP. An economy where the current account deficit is 7% of GDP. That is being financed by low interest rates, easily available credit and artificially inflated real estate values. The massive issuance of money and credit by most all nations, particularly the US, Asia and now Europe, continues to distort economic reality. A by-product of this insane issuance of monetary aggregates is the transference of ownership of American assets into foreign hands. We expect more of the same over the next few years as inflation rises and at some stage the bubble will break and the value of most everything will fall. We expect 40-60% losses in real estate, stocks and bonds. All those Asian producers will be sitting with idle factories as consumption falls and Americans are left with unpayable debt. Central banks and governments cannot keep issuing money, widely extending credit, and continue fiscal insanity indefinitely. An event will occur, totally unexpected, and the edifice will collapse. The basic laws of economics cannot be defied indefinitely. In the hyperinflation ahead the only way you can protect what you have is via gold and silver related assets.

    What central banks have been doing, particularly our Fed, is bailing out the financial system via financial derivatives and hedge funds. In spite of this papering over of the system the beginning of a financial-derivative-driven general collapse of the world monetary financial system is well underway. What you are seeing is illusion by those who are delusional. The elitist are in denial and the longer they put off the inevitable the worse it is going to be.

    Professor Robert Pastor, one of the six-co-chairmen of the Council on Foreign Relations (CFR) Task Force on North America, reported in Congressional testimony, “The best way to secure the US today is not at our borders with Mexico and Canada, but at the borders of North America as a whole. We hope to accomplish this by 2010. It will be a common external tariff, which will mean that goods can move easily across the border. We want a common security perimeter around all of North America, so as to ease the travel of people within North America.” The CFR Task Force report is entitled Building a North American Community. The CFR program envisions a common border around the US, Mexico and Canada in just five years, a border pass for residents of three countries and a free flow of goods and people. That means the loss of sovereignty for all three countries. Such a union will mean one military; Canadians and Mexicans being involved in homeland security and a free flow of workers in all three countries. A North American style EU. This is where our elitists want to take us. As Lou Dobbs said on CNN in June, “Have our political elitists gone mad.”

    A joint report was signed in June by cabinet ministers of the three countries, entitled Security and Prosperity Partnership of North America. They spelled out that we recognize that this partnership is designed to be a “dynamic permanent process” and that the work plans are but a first step. While this is being put together this cabal is working feverishly to put FTAA, the Free Trade Areas of the Americas into action eventually amalgamating all of North, South and Central America as a United States of North and South America. The next move will be a merging of the EU, FTAA and Asia into a world government. These internationalist cadres of elitists have thus far identified over 300 initiatives spread over twenty trilateral working groups on which the three countries will collaborate. Needless to say, we are not told what they have planned for us in secret. This is no transparency. Mexico has demanded amnesty for the 20 million illegal aliens in the US and unlimited immigration.

    Up until the new bill on illegal immigration last week, all previous bills by Senators McCain, Edward Kennedy, John Coryn and Jon Kyl have been a sellout of the American people, which would dramatically increase federal surveillance and intrusion into the lives of American citizens, never mind rewarding law breakers. What the elitists also want is a merging of US and Mexican immigration, military and law enforcement personnel.

    As Robert Pastor said, “NAFTA was merely the first draft of an economic constitution for North America.” As we predicted in 1991, when we first published the IF, NAFTA was no simple trade agreement. It was the first installment of an ongoing dynamic, permanent process - a step toward one-world government. Even the Department of Fatherland Security says they will expand their mission to cover the entire continent by incorporating Mexican and Canadian perspectives and personnel into its design and operation. They will enforce international fascism.

    When are Americans going to wake up? The elitists, globalists, internationalists and one-worlders have taken control of both political parties and our entire government.

    The average illegal alien family uses $2,700 more in welfare and other social services than he or she pays in taxes. There are 1.5 million illegal alien children using our public schools. Then there follows gangs, violence, intimidation and the total breakdown of academic excellence and achievement. Every accommodation is made for the offspring of illegal aliens. For those who are not born in the US to illegal parents you jump the border. Once you are in you get a driver’s license, welfare, entitlements, medical insurance, workers comp and it goes on and on.

    In NYC the average price of an apartment dropped 12.7% from $1.32 million in the second quarter to $1.15 million in the third quarter. As well the two-bedroom market fell 3.4%. Fifty-five percent of all sales were studio and one-bedroom apartments.

    In Fairfax County, Va., a number of homes on the market in August rose 50% from August 2004. Inventory is rising all over the country. Mortgage rates are rising, gasoline is $3.00 a gallon, and in 30 of the hottest markets in the country only 20% of consumers can qualify to buy homes, so this slowdown could well be the real thing.

    In January, house prices in Massachusetts rose 15%. In August, prices were flat and condos fell a bit. The trouble will now begin as those with exotic mortgages can’t make new higher payments, speculators sell homes and second homebuyers begin to dump. Low interest rates and easy credit standards are just about over.

    Bill Gross of PIMCO tells us that it is inevitable, 99% unavoidable, a slam dunk that next year interest rates will again fall as home prices ease due to higher interest rates, lending is tightened and home equity borrowing ceases. We see a fly in the ointment and that is prices are rising strongly. The BLS has been lying about inflation figures and most importantly money and credit is being increased at an average pace of 12%. If the Fed stops that, rates could drop and so could the economy in a big way. We believe rates will climb another 1/4% to 1/2% before Sir Alan Greenspan retirees and then they could stay at those higher levels for some time.

    The 2.75% hike in rates is starting to keep first time buyers out of the market and affordability rates are approaching 15-year lows and evidentially bank lending will be tightening. Once the correction begins it will be very tough to stop the downside momentum. About one-third of purchases have been for speculation and second homes, not the 20% PIMCO quotes. Last year homeowners borrowed $600 billion against the equity in their homes. If interest rates are 1% or 1 1/2% higher early next year from their lows, those rates will be 6 1/2% to 7%. We won’t see $600 billion being borrowed; perhaps the figure will be $200 to $300 billion. That means consumer buying could drop and that means the Fed will increase monetary aggregates (money and credit) even more and that means more inflation. That $200 to $300 billion is 3% to 3 1/2% of disposable income that will be lost. A lowering of rates again in mid-2006 could as we see it lead to mega inflation. The Fed has few options; all the bridges have been burned.

    The Phoenix Fire Department Search & Rescue Team has been suspended from FEMA for deploying armed police officers to protect firefighters in violation of the agency’s rules. As a result, Phoenix officials are now threatening to refuse some of the most dangerous deployments in the future or possibly even pull out of FEMA altogether, unless the rules are changed to allow teams to bring their own security, even if that means police with guns. Let’s hope every city in the country does the same thing, especially the 28 FEMA is currently using.

    The Bush administration is the most corrupt in our history and who better to protect them than new Supreme Court Justice Roberts and political hack Harriet Miers. Ms. Miers says President Bush is the most brilliant man she has ever met. This appointment is self-protection as was Roberts. Miers knows where all the bodies are hidden. It would be nice if her nomination were derailed.

    President Bush, stirring debate on the possibility of bird flu pandemic, has suggested dispatching American troops to enforce quarantines in any areas with outbreaks of the killer virus. The question is could this include martial law? Our answer is, yes. Any excuse will do. He says state and local authorities might not be able to contain such an outbreak. He has asked Congress to give him the authority to call in the military. This could be the key to a police state. Bush has already indicated he wants to give the armed forces lead responsibility for conducting search and rescue operations and sending in supplies after massive natural disasters and terrorist attacks – a strategy that could require a change in law. The translation of this is martial law. Bush signed an executive order in April adding pandemic influenza to the government’s list of communicable diseases for which quarantine is authorized. This, of course, has never been published by the mainstream media until this week.

    Late last week and early this week 900,000 ounces of gold and 1.5 million ounces of silver went up for delivery. The Bank of Nova Scotia took all the silver and part of the gold. The volumes of these deliveries are unprecedented. This could be the beginning of a physical squeeze.

    Fiat money is counterfeit paper, which destroys wealth. It leads to man’s control by others we call elitists. The only sanctuary is gold and its objective standard as the only real money. Get out of currencies as quickly as possible and into gold, the only real currency.

    You should rejoice that gold has been suppressed. You should be happy that physical gold purchases are leading the market. This is unusual if not extraordinary. This offers you the opportunity of a lifetime and reduces your risk. Take things for what they are not what you would like them to be. Be patient and you will be rewarded as most others are losing their shirts.

    The Office of the Comptroller of the Currency gold derivatives second quarter report has been released. They are up slightly at $64.27 billion versus the first quarter’s $62.75 billion. JP Morgan Chase is the top holder with $36.55 billion.

    Gold sales are booming as the festival season of Navratri begins in India. The cartel will be hard pressed to push gold prices lower over this next month, especially with booming wedding demand.

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