International Forecaster Weekly

Our Modern Day Caligula

Our modern day Caligula... rigged election machines... praying for good things to happen... prison nation... the Geneva Convention comes to Guantanamo, finally... the threat posed by GM corn... and much more in the full issue of the International Forecaster!

Bob Chapman | November 15, 2004

As we were four years ago, we are confronted with the probability that the election was fixed. The method again was electronic voting fraud, in states with E-voting without paper trails. There was usual destruction of paper ballots in heavily Democratic areas. In Florida, Republicans picked up an extraordinary increase in votes only in those counties, which have optical scanner voting equipment. The disparities are so great that one can only come to the conclusion that the equipment was rigged. There was an increase of 1.39 million new voters in Florida and Kerry lost by 376 votes, yet exit polls showed Kerry leading by 5%. Were the Diebold machines rigged? Every state that has electronic voting, but no paper trails; has an unexplained advantage for Bush of 5% when comparing exit polls to actual results. In every state that has paper audit trails on their E-voting, the exit polls results match the actual results reported within the margin of error. There have been numerous instances of ethnic cleansing of voter calls. The litany goes one. Let’s do something about this.

If you believe George W. Bush and his neocons were arrogant during their first four years, wait until you see the second four years. There will be absolutely no checks and balances. Republicans solidly control Congress and the Supreme Court rubber-stamps neocon ideas. There are no checks and balances, this makes the next four years extremely dangerous. We see full steam ahead for Social Security reform or stock market investment of available funds that will increase our deficit by $250 billion a year. Energy reform is a major give-away to elitist oil interests. Tax reform could be constructive, we will see. We expect many more scandals, government, corporate and more from the securities and investment industry in general. George will watch the collapse of the American economy as debt devours our economy. When you have too big a majority in Washington, you have trouble, big trouble. Secrecy will be expanded far beyond anything seen in Nazi Germany or Soviet Russia. Spies will be everywhere. Iraq will become another Vietnam and chances are good that we will have a Selective Service draft. We will hear lots more about lack of patriotism and disloyalty to our leader who should be collecting garbage. Our journey will not be a pleasant one. Our President will continue to betray every constitutional principle he pretends to espouse. We believe the conservatives and liberals still just do not get it and they are still captive to elitist psywar.

George W. Bush’s election victory was not resounding and he barely has a mandate assuming he really won the Presidency. He told us during the debates that Iran would not be allowed to develop nuclear weapons. We wonder what China and Russia will have to say about that. In the beltway, the scuttlebutt is February is the month Iran will be laid low by George the dragon slayer. Someone should tell him that he will be facing three times the number of combatants he is facing in Iraq. We will need over one million troops to invade Iran. Our President, his accomplices and our valiant fighting forces cannot wrap themselves in a flag and hope to win. Flags are not bulletproof.

Our President has no idea how he will pay for his second term agenda as federal deficits run amok. There is no federal surplus of $5.6 billion like there was four years ago when he first took office. The President says he will see that the budget deficit is halved. Yet, the CBO says it now sees $2.3 trillion in accumulated deficits over the next ten years. We do not know about you, but we trust the veracity of the CBO. George is known for seldom telling the truth. That CBO estimated excludes the costs of wars in Iraq and Afghanistan and any more adventures that George and the neocons can dream up, such as nuclear war. Paying for all this is impossible. Next, we will have tax reforms, which will in fact be tax increases. George says he will impose spending discipline on Congress and spur economic growth to boast tax revenue. That will not work because if Congress cuts spending the economy will slow down. If Mr. Bush tries to borrow the money, it would be very detrimental to our already staggering deficit.

Then, George wants to create Social Security Savings Accounts. There is no money in Social Security so he would have to take the funds from current cash tax flow. Analysts have estimated the ten-year price tag at $2 trillion.

Bush then wants to make 2001and 2003 tax cuts permanent because they expire in ten years. That will cost another $1 trillion. The cost of the Iraq and Afghanistan wars this year is $100 billion. We do not even have figures on his domestic war against terrorism. All we know is, it is tens of billions of dollars and we have not caught one terrorist yet.

There is a limit to which foreign investors will go with Bush’s profligacy and we believe that limit was reached last August. The foreign inflow of funds should continue to diminish and that means the Fed will have to buy and monetize debt, which is highly and immediately inflationary.

Sometimes if you pray and wish hard enough, good things happen. The US is preparing to destroy Afghanistan’s opium poppy crop by air next spring. The program will be modeled from the program in Colombia. Hundreds of private security contractors and pilots will be hired to spray herbicides from low flying aircraft. Production of opium, as we reported some time ago, was up 64% last year. The program begins in February or March and includes targeting drug barons. The risk is that the eradication program could spark rural rebellion, increase support for the Taliban and damage the environment. It, of course, impoverishes the country.

The Specter Amendment was passed in the $373 billion spending Bill, which allows religious minorities from Iran to enter the US. That includes Bahais, Christians, Zoroastrians and 25,000 Jews. Could it be that we are allowing these people refugee status because we are going to invade Iran? We do not know, but it is a reasonable assumption. These refugees will all be immediately put on welfare and federal handouts of all kinds. If elderly, they are financed to live happily ever- after off our taxes. We worked a lifetime for Social Security and these people waltz in and absorb the benefits. Since the Lautenberg Amendment was adapted fifteen years ago, 400,000 Jews from the former Soviet Union entered the country with the same overall benefits, plus many received funding to start businesses. Today, most of the recipients are non-Jews. A possible 1.4 million non-Jewish refugees could take advantage of the program.

The Dow is up because Wall Street believes they will be sucking in all that Social Security money. A government sanctioned give-away to Wall Street. It is not reality yet, and all Democrats and many Republicans vote against it. We are on record of opposing the idea. How will they make up the $250 billion a year they will lose in tax receipts? Where will the money come from? That is right, they will borrow it. Are we not in enough trouble already? How will government fund the $82 trillion in entitlement funds? This idea will push us straight into bankruptcy.

The SEC is investigating a large number of brokerage firms on suspicion that they failed to secure the best available price for stocks they were trading for their customers. We have been in and associated with the brokerage community for 45 years. We can promise you traders have screwed their clients on over half the executed trades. Those pennies they clip you for add up to lot of money. Two of the problems are the SEC sanctioned internalization, and payment for order-flow. Internalization is when a brokerage firm trades an order against its own inventory of a stock, or either sells stock he owns or others buy or sell orders waiting to be executed. There are all kinds of tricks of the trade. Most of these traders know each other and 80% of the time they collude against you on the trade. The very worst in this venue are the discount brokers. In order-flow a broker, stock exchange or market maker kicks back a commission for an order sent to them. In the process, more often then not, the customer does not get the best possible execution. These are all conflicts of interest, which have never been addressed before. Eliot Spitzer does it again. He knows exactly where to look to catch these thieves.

The number of inmates in state or federal prisons rose 2.1% last year, even as violent crimes and property crimes fell. This is the result of laws passed in the 1990s that led to more prison sentences and longer terms. At the end of 2003, there were 1,470,045 men and women in prisons. If you add those in city and county jails and juvenile offenders, the total is 2,212,475. Forty-four percent of state and federal prisoners were black, 35% white, 19% Hispanic and 2% other. The number of women in prison is growing fast, rising 3.6%. The 101,179 are 6.9% of the prison population. Ten percent of all American black men, ages 25 to 29 were in prison. Those figures are surprising because violent crime is off 16% over the last 9 years, there has been a 36% decrease in arrests for murder, and 25% decrease in warrants for robbery. The average time served, rose from 23 months in 1995 to 30 months in 2001. The inmate population for older criminals has grown. Fifty percent of inmates are 40 to 54 years old. Those over 65 make up 1% of those imprisoned.

There are now twelve brokerage firms under investigation by the SEC for trading fraud. Before this is over, every market maker in the country will be nailed. There is no end to the criminal activity on Wall Street.

H&R Block’s financial advisors unit was charged with fraud by securities regulators for misrepresenting the risks of Enron Corporation bonds and calling them safe, even as the energy trader had begun to collapse into bankruptcy.

A criminal probe of Boeings dealings with the US Air Force, which we exposed almost two years ago, is widening to include a $100 billion Army program it oversees.

We foresee an evolutionary process that includes Asian central banks continuing to hold and buy US dollar related assets, because if they do not do this, the current financial system globally cannot be sustained. The US has gone too far and there is no way back, our guess is the Asians will be and are currently sellers of US dollars and that will continue. In time, the euro will replace the dollar. We would have a new Bretton Woods type conference, gold will be rediscovered as a monetary metal, the euro is 15% backed by gold, and a new level of gold backing will arise for the euro.

We believe that backing will be 28%. We expect a revision to imposts and tariffs, and many years will be spent by every country working out their monetary and fiscal problems. In the meantime, to ask all central banks not to diversify their holdings is impossible. The risk of dollar depreciation grows daily. We expect another 30% drop in the dollar. Another 30% drop after already absorbing a 30% drop, will be very painful for all lenders to the US, particularly China, Japan, Taiwan, and Hong Kong. As their central banks are holding $2.2 trillion in foreign exchange reserves out of a total of $3.4 trillion, a further 30% correction is a further loss of $660 billion. As we see it, Asia has already started to bail out. The world will follow. The flipside is $1,500.00 gold and $50.00 silver. Load up on gold and silver coins and stocks. Fortunes will be made.

In order to win the election, George W. Bush had to win Ohio and Florida. The Bush crime family made sure that votes appeared one way or the other, via voting machines. Ohio has long been Rockefeller and Hanna Country. Hanna was the elitist who bankrolled Brian Mulroney in Canada. The Hanna Company was bought out by non other than Conrad Black. In Ohio, in one district they recorded 4,900 votes - 4,300 for Bush and 600 for Kerry. The problem was that the district only had 900 people eligible to vote - 600 for Bush and 300 for Kerry. Voting machines have to have paper backup or they should not be used, period. Bush again steals the election and something should be done about it.

The CIA has assigned dozens of case officers and analysts to work with FBI agents throughout the US in the most extensive deployment of intelligence officers on domestic soil in the agency’s history. This is being done to catch those phantom terrorists. This action by the CIA is illegal and beyond its charter. The justification is that they are not involved in criminal investigations. How very stupid, and we are supposed to believe that. The new relationship is the result of demands from Congress, who like the President sees terrorists under every bed. This has all the signs of a growing police state and the growing surveillance power of an unhinged government.

The election outcome unfortunately did not matter; both candidates represent two factions of the Illuminati. You have to leave the right-left paradigm to understand what is being done to you. The Illuminati controls the media and most of the politicians. They have subverted our social institutions, businesses, government, law and education processes. They represent the Illuminati, Europe’s Black Nobility, European Freemasonry, the House of Windsor, and the Royal Society, and the Rockefeller interests at the CFR and Trilateral Commission, as well as the Bilderberger Group, in their drive toward a New World Order. Both parties have the same agenda, world government.

George W. Bush is getting backup from a supposed enemy, the NY Times, which in a lead edition on Monday said, ”Troop commitments to Iraq should be increased by 40,000 soldiers.” If Mr. Bush feels he now has a mandate from the voters to stay the course until he creates a stable unified Iraq, he owes it to the Iraqi people and Americans stationed there, to commit enough additional troops to make that look like a plausible possibility. The Times believes these troops will serve a civilized purpose. They said, “There are more than enough potential fighting age volunteers, to do that without resorting to the draft.” This of course, is just a come on. All Bush has to say is, “You are mistaken, we do not have the troops.” However, seeing you believe, and we believe we need them, we will reintroduce the draft. Of course, when the draft comes, the Times will say, “Well if we do not have the men, I guess we will have to resort to the draft.” The media acts as a backup to the administration, proclaiming we have to defeat terrorism to ensure stability. The only terrorists we have are in Washington.

It’s about time. “The special trials established to determine the guilt, or innocence of prisoners at the US military prison in Cuba, are unlawful and cannot continue in their current form,” said US District Judge James Robertson who will probably be another suicide shortly. This means, says the Judge, “Maybe prisoners of war are under the Geneva Convention, and therefore entitled to the protection of International Military Law, which our government, has declined to grant them.” This decision was remarkable, in that it will give heart to all who think the rule of law should apply in the Afghanistan conflict. The war on terrorism is the first US war since the Geneva Convention adoption in 1949, in which the government has not accorded POW status to enemy fighters. We hope the government reconsiders its decision, in order to regain the high ground in the Court of Public Opinion.

Capt. Jay Ferriola has dropped his lawsuit against the Army for assigning him to active duty, after his contract had expired and he had resigned. The Army formally and honorably discharged him. Ferriola has served in South Korea and Bosnia. He was recently assigned to Iraq in a back-door draft. The basis for Ferriola’s case was the order violating his constitutional rights against involuntary servitude, and breached his military contract. This should stop these illegal acts in their tracks.

Sir Alan Greenspan continues to lend money at 2% in a world where inflation is over 9%. The Fed looses money on every transaction it makes with banks, but makes it up by rigging markets, or creating more fiat money and credit out of thin air. This largess is what is keeping the enemy afloat. The problem is there is a price to pay for this scam, and it is a scam. This fiat money has kept the stock market up, bonds up, and has resulted in a housing market that defiles reality. The price is a massive fiscal and monetary disaster in the market. That is what a falling dollar is all about. Debt, personal, government and corporate is somewhere in the galaxy. This recovery of the last 1-1/2 years is as phony as a three-dollar bill. The demand has been created out of thin air and all the borrowers will ultimately get buried. You can take that to the bank.

A scientific panel of international experts has concluded that the unintended spread of US genetically modified corn, in Mexico, poses a potential threat that should be limited or stopped. The group sponsored by NAFTA rejected the US position that the modified corn is, in effect, not different from conventionally bred corn hybrids. As we predicted ten years ago, this GM corn would be spread into non-GM corn areas by wind and end in cross-pollination, and thus, it has happened. No one knows yet if GM corn is harmful. GM corn is a threat to Mexico’s staple food supply.

It is nice to know that our President is divinely inspired and that he communicates with God. If history serves us correctly the last fascist dictator who had similar experiences was Caligula. We should now be prepared to watch Mr. Bush spend his political capitol. He will concentrate on enriching those in power politically and economically, namely, the American elitists. Large amounts of money will be funneled to Evangelical Christians and favored defense contractors such as Halliburton, which already gets 40% of the Pentagon’s budget in no-bid contracts, and that percentage will increase as social programs are cut to spend more on perpetual wars for perpetual peace. The tax burden will be shifted to the middle class to reward the wealthy for their support. Privatizing Social Security will generate billions in concessions for Wall Street, insurance and banking. Of course, a percentage of those profits will return to the party in the perpetual recycling process. Those who attempt to uncover crime, under and in this administration will be destroyed, as will reporters and voters like us unless we move beyond their reach. Those who disagree with our modern day Caligula will be destroyed. We have a lunatic monster in the White House. Today’s political morality has no more depth than Bush’s intellectual curiosity. Freedom is gone now and we must fight to retrieve it.