Thursday, October 23, 2008

LATEST BOB CHAPMAN ARTICLE 10/22/08

http://theinternationalforecaster.com/International_Forecaster_Weekly/Insider_Profiting_Will_Bring_The_Hyperinflation_Juggernaut (GT sez: Bob Chapman gives the clearest explanations of this mess as it unfolds. If you don't read his articles, you will deserve what you get in the end.) Wall street insiders reformulate the profit model, outsider stock market players to be vaporized, new Fed facilities being created on a daily basis, new super-entities created in mergers and acquisitions, post bailout, to be vaporized by derivatives death star, dry derivatives setup for Lehman insiders to get a big payout, suppressing gold only encourages treasuries, no longer such thing as a secure retirement EXCERPT: "So everyone is running for the perceived security of US treasuries. The carry traders, institutional investors, professional and amateur individual investors, hedge funds, sovereign wealth funds, mutual funds, money market funds, holders of US agencies, you name it. Any foreigners who want to purchase treasuries must buy dollars, and that is the major support we are seeing in the current dollar rally. This is not a very good scenario for our economy and it will only get worse as real estate, credit-crunch, derivative and consumer spending debacles grow ever more fearsome. Meanwhile, the advance of the dollar keeps steady downward pressure on gold, which is JOB ONE at the Fed. For many months now, this is what we have described as stock markets coming down with "yellow fever," meaning that the stock markets look sickly because they are being sacrificed to push money into treasuries, thereby supporting the dollar and suppressing gold. Also, by suppressing gold through various means, they are discouraging gold and encouraging treasuries as the safe-haven of choice. This keeps money pumping into treasuries, thus supporting the dollar, and the value of treasury bonds and other debt tied to treasury rates. Remember, the bond markets are the seat of Illuminist power, and they are about to crumble at any moment, thus paving the way for the worst bear market in bonds in our nation's history. That is because, unfortunately for the elitists, this increased demand for treasuries drives their rate of return down to extremely low levels to the point where no one will want them anymore because they know that real inflation is in double digits and is about to get much worse as the bailout dollars flood the world economy with worthless paper. By driving money into treasuries and by supporting the dollar, the elitists are trying in vain to delay the destruction of the bond markets."

No comments: