Bob Chapman | The International Forecaster | Green T Hour

Excerpt from World Renown Economist Bob Chapman and "The International Forecaster"

01/14/2012

Europe continues to predominate the news. At a Monday meeting French President Nicolas Sarkozy won the backing of German Chancellor Angela Merkel on a tax on financial transactions. Britain says it won’t work unless it is applied worldwide. Britain is correct, but is the UK begging the point. Could Britain have wanted the tax from the beginning, as long as it was global? Of course they would, it is a method of taxing investors, for governments along with the IMF, UN and World Bank, which is what these people have been up to for years. We believe a game is being played here to tax financial transactions to fund anything the elitists’ want. We question the geniusness of England as an honest player.

Mrs. Merkel says she is in favor of such a tax. We ask, are not European taxes high enough already? Tax rates or a net basis already exceed 70%. Such a tax is to be presented in February and should cause Mr. Sarkozy’s reelection chance to falter somewhat. The $100 plus billion tax will decrease economic activity, reduce revenue from other taxes and act as a form of austerity on the economies. The wrong tax at the wrong time. Even the French Banking Federation says such a tax would weight on growth, lead to lack of competitiveness and create a heavy handicap for the financing of the French economy.

After having experienced such a tax on securities transactions in the mid-1960s it so outraged investors that they stopped active trading. It wasn’t the amount, which was taxed because it was miniscule; it was the very fact that investors had been singled out for further taxation. The tax is either a red herring to make it look like higher taxes are being considered or they want to engulf the world in such a tax for other reasons, which we previously explained. The amount of money to be raised by such a tax in Europe would be a non-event in Europe’s debt problems. In the meantime Mrs. Merkel and Mr. Sarkozy are setting new rules for budgetary discipline. A new fiscal compact, which is the old fiscal compact. Austerity and megaloans

from the ECB, both for countries and banks. There will be no real changes, just more debt. This is more obfuscation, because nothing is really being done to solve the debt problems or jump-start the economy. The banks and sovereigns will just borrow more money from the ECB, which borrows money from the Fed, which creates trillions of dollars out of thin air.

In the process the IMF’s Christine Lagarde told Mrs. Merkel and Mr. Sarkozy that the IMF wants Greece to stay in the euro. She and other elitists are rushing a Greek solution ASAP, because of an additional hanging loan. That is true, but it is really all about bringing about a solution favorable to the bankers, before the April election. That is really what the rush is all about.

10/06/2011

Over the past three years the Federal Reserve has purchased $2.25 trillion of

Treasuries, Agencies and mortgage bonds known as toxic waste. We have no idea what

the cost of this debt was and what its current value is marked to market. All we know is

the Fed has debt on its books of some $3 trillion that they admit too. The Fed operates in

secret and when asked difficult questions about its operations it says it is a state secret.

Fortunately the court system and Dodd-Frank have uncovered some of these secrets,

like a few trillion here they forget to tell us about and $16.1 trillion there that they covered

up. These monies, that the Fed created out of thin air, went to transnational

conglomerates and the banking and financial sectors in the US, England and Europe. A

tight elitist connected group, that for some reason the Fed didn’t want to tell us about.

The Fed bailed out temporarily banking in the western world and is still brazenly doing

so. The latest caper was a $500 billion swap to again bailout European banks. Of

course, three other central banks were supposedly partners in this bailout. If you believe

that we have a bridge you’d really be interested in for sale. These people in the Fed and

within government are incapable of telling the truth. Yes, the Fed creates reserves,

totally without collateralization by buying Treasuries and other securities. No, they are

not printing paper money, but what they are doing is tantamount to that. And yes, they

do order paper money to be printed from time to time. You might ask yourself if the Fed

creates money for banks to use to loan and assist the economy, why do the banks lend

the money back to the Fed at an interest rate higher than what they borrowed at? At the

same time the economy struggles with inflation at 11.4% and unemployment at 22.8%.

These banks have no trouble making funds available for AAA elitist’s corporations, but

have cut loans to small and medium sized companies that create 70% of new jobs. We

marvel at that kind of thinking. Perhaps banks and the Fed do not want to create jobs.

We ask but no answer is forthcoming.

QE 1 and 2 bailed out the financial sectors in the US, UK and England and the US

government, but the Fed forgot about the economy in their quest to keep their friends

and the system functioning. The stimulus from government debt creation did little or

nothing to help the economy. $1.7 trillion thrown down a rat hole Yes, it did elevate

GDP temporarily, but that is about it. In fairness it should be noted that qualified

corporate and personal borrowers are reluctant to borrow, because they have little faith

in the policies of the Fed, which is privately owned, and the government. At the same

time these non-borrowers are buying Treasuries. That puts us in a mental quandary.

What kind of linear thinking is that?

In QE 2 mortgage rates never fell thus, we surmise that is why the Fed started

operation twist. They want 3% to 3-1/2% 30-year fixed rate mortgages. Rates are

beginning to fall and those lower rates will attract buyers and allow more to qualify, but it

won’t create a demand that will come anywhere near solving the problem, nor will it

create construction jobs. Builders are building 570,000 houses a year, and they are

having a difficult time selling them with a 3.8 million-inventory overhang. What the Fed is

doing is positive, but it takes too long and won’t create lots of jobs. The key is for banks

to lend $800 billion to small and medium sized businesses. The funds are available so

they should move forward immediately on such a project. What can be said concerning

the Fed, Treasury and the administration is they got it all wrong. It is almost like they

deliberately failed. Can they really be that stupid? Some of them are, but the rest know

what to do. The see what we see, so what is their excuse? Is it as we described it more

than three years ago? Is the US economy being deliberately destroyed? We believe

after what we predicted and after what we have seen that destruction is the real mission.

These parties will drag out the failure of the economy, just as they are doing in Europe

and somewhere down the line when they have to or want to they will pull the plug. There

are many other preparatory predatory maneuvers in the works by Northern Command,

FEMA and a number of other agencies, which are preparing to control us. Ladies and

gentlemen most of you do not have a clue, as to what is really afoot.

Giving any credit to the Fed to staving off deflation is ridiculous. If they had not

increased inflation over the past 12 years we would have collapsed. The Fed was

responsible for the housing collapse and deflation along with Wall Street and the

international banking cartel. It is like 1929 to 1933 all over again, but this time the Fed

supplied liquidity they didn’t contract it, which incidentally they know doesn’t work either.

They know only purging the system works and they will get around to that sooner or

later. Do not forget as well, that quantitative easing saves Wall Street, banking and

government, but it also creates gains in the stock and bond markets, which creates great

profit possibilities and speculation. As a result of those markets staying up the economy

looks prosperous, when in fact the results are fed by monetary creation. As a result this

money and credit extension creates inflation and gold, silver and commodities gain in

value. This kind of performance has cost the Fed dearly as consumer confidence has

nosedived. If you add in Ron Paul’s exposure of the Fed we now see citizens

understanding what we are talking about. In the 1960s and onward if you handed

someone a pamphlet explaining what the Fed is they’d tell you they didn’t believe it, or

you were crazy. Not anymore, the public now understands who runs our country and

who is screwing us. 2010 has been a rocky year, but the US and UK were lucky,

because Europe’s problems served as a cover for their problems. Yes, problems of an

intense nature still abound in Europe and will for some time to come. Yes, Europe is a

hopeless cause, but so are the UK and US. It is just that Europe will be the first to bite

the dust. Just look at consumer confidence in all three regions, it is terrible and

understandably so. The American Congress has an approval rating of 9 and the

President 35. Perhaps the public is finally getting the message that the elitist do not care

one bit about you. QE 1 and 2 were about saving the rich and the government nothing

less. Unemployment is worse not better as Wall Street pulls their gigantic bonuses and

people are actually starving in America. The working poor and the middle class are

looking at house prices down 40% to 50% and 20% more is in the offering. Those on the

top have gotten all the benefits; the rest got little or nothing.

How many times must the Fed be told before they get it that they are pushing on a

string? Unfortunately they are well aware of that. What do you think of people who

continue to enrich Wall Street and themselves, as retirees have their Social Security

frozen and are facing massive cuts in SS and Medicare? People who paid in all their

lives to be cheated out of their health care and retirement. Americans who receive 2%

on T-notes in a world of over 11% inflation; all because Wall Street, banking and

transnational corporations are too big to fail. Worse yet, savers are forced into 10-year

and 30-year debt to obtain a higher yield. We could see the 10-year notes at 1% to 1-

1/2% and the 30-year bonds at 2.5% to 3%.

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