World At A Boil With War And Economic Crisis

Bob Chapman
International Forecaster
Nov 29, 2010

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.

This is the same goop Treasury Secretary Mr. Geithner fed us at the G-20 meeting. The concept of lets all of us go bankrupt together, utopianism at its finest. Fortunately in both cases the concept of global rebalancing went over like a lead balloon. Any honest economist knows this is a rehash of flawed policy. When government and the Fed abandoned the gold reserve standard on august 15, 1971, they knew where this would all end up, but they did it anyway in their march toward a world financial order and world government. After that historic date there would be no return to sound money until the system was totally purged. We have heard the call for almost 40 years of the amalgamation of nations for the interest of all. Individual countries must sacrifice their interests for the entire global economy. this is why the Fed has deliberately accommodated monetary excesses since then.

We have written about this embarrassment of planned destruction for 45 years and until recently our thoughts were ignored. Thanks to talk radio and the Internet, that reaches the entire world, we are finding that more and more people are waking up to the truth. Since the 1980s we have had one fiscal and monetary crisis – one after another. Now that the world is beginning to discover what Europe and the US have been up to for years these internationalists now find themselves in deep trouble. Their real problem is too many people now know what they are up to.

Full article HERE