International Forecaster Weekly

A Draft Quitetly Creeps Through The Back Door Of The Pentagon

A draft quitetly creeps through the back door of the Pentagon... our unhinged president... deficit watch, fascist plans, bugs in your shorts, coporate fraud gets a slap on the wrist... drunk on subsidies... and much more in the full issue of the International Forecaster...

Bob Chapman | October 3, 2004

Democratic V.P. Candidate John Edwards says, “There will be no draft when John Kerry is president”. Under Mr. Bush, the Pentagon has taken a number of steps toward a Selective Service Draft. In June, the Pentagon recalled to active duty 5,674 members of the Individual Ready Reserve. Soldiers who have served specified tours of duty but supposedly have years remaining in their enlistment contracts. This is effectively a backdoor draft.

Congress authorized a census every 10 years. We now have one annually, the American Community Survey, staffed by three million federal employees and various contractors. Essentially, it’s a spy system. It delves into matters that government has no business knowing including a person’s job, income, physical and emotional health, family status, place of residence, intimate personal and private habits, marital status and race, physical, mental and emotional problems. They want to know how many bedrooms you have in case they have to move some people into your home after you lose your home to bankruptcy due to high interest rates. What does it cost you for electricity, gas, mortgage payments and property taxes? They even want to know where you are during all 24 hours so they will know, under the Patriot Act, when to go through your home to check everything personal including your thoughts and how much money and how many guns you have in your home. You have to supply the names and addresses of friends, relatives and employer along with how many homes and vehicles you own. Your educational levels are of government interest as well as information on people in your home, what languages they speak, and when they last worked at a job. This is a true thought police. Most important of all government will back into your assets, do net asset value on you and if you have too much versus your declared income, the IRS will soon be after you. If you are found to have cheated the government of taxes, you will go to an internment camp for reeducation. This survey is not voluntary you must answer or face a $100 fine. Any false response brings a $500 fine. If you do not answer or give nonsensical answers, the fines are $10,000 to $50,000. All the information is sold to corporations so they can better sell you their wares. That fellow Americans is what it is like living in a corporate fascist state.

We are not the only ones concerned about the creation of an intelligence Czar. In what obviously is a split in elitist ranks, Henry Kissinger has warned Congress to slow down on the new idea for a super-boss and said he and other cold war warriors think only deliberation would ensure that the change won’t hurt America’s intelligence and security capabilities. The Commission on 9/11’s complaint, that a failure to cooperate allowed 9/11 to happen is hogwash. This is being used to form a national Gestapo, in which one person can demand the country; the President and Congress do as he says. It is a license for totalitarian government. It is an overbalance in the system. You cannot and should not mix domestic surveillance with foreign intelligence. If this were enacted with Patriot Acts I and II already to work with, we would have totalitarian government, which would most certainly lead to revolution. George and his neocons are pushing to ram this issue through before the election.

George and the neocons need money to finance their foreign wars and this have discovered that the tobacco industry schemed to deceive Americans regarding the ill affect of smoking and they want a $280 billion settlement for fraud under RICO. The massive scheme was successful and had a devastating affect on millions of Americans. If found guilty we believe all those involved should be put in jail for life and the $280 billion be granted to the families of victims of circulatory and heart disease and that not one cent be paid to the government.

Last week our President and Iraq’s CIA appointed Prime Minister Ayad Allawi told us Iraq would have free elections in January although they may not be perfect. Get real you must think we are dumb. The country is out of control. There is persistent escalating violence. Defense Secretary Rumsfeld tells us elections may be only held in certain parts of Iraq. Allawi told Congress Iraq was emerging from the dark ages of violence, aggression, corruption and greed. He is right, but we are supplanting those evil acts with our own brand of evil. Thousands of our children and grandchildren are dying there and there is absolutely no end in sight. George Bush says in his autobiography he disagreed with the Vietnam strategy because we would not explain the mission and that we had no exit strategy. We were not fighting to win says George. This is the same President who is blind to the similar realities of his own war in Iraq. Our President is unhinged and out of touch with reality. Every day we have firefights, bombings, kidnappings and beheadings. Then there are suicide bombers. Other politicians who got us into this mess are now calling for a recalibration of policy, while George and his neocons live in their make-believe world. Quite frankly, the only thing worse than what is going on is having our troops slaughtered. If we do not get out now we can assure you that your son’s and daughters and grandsons and granddaughters will be drafted sometime early next year, so that they can be led to the slaughter as we extend the carnage to Iran and Syria.

The Republican party has admitted sending mass mailings to residents of Arkansas and West Virginia warning that liberals seek to ban the bible and that the Democrats propose gay marriages.

California has become the first state to ban weeding by hand on most farms, saying the work is too backbreaking for laborers. There go thousands of jobs in the People’s Republic.

We often are asked what should we expect if George W. Bush and the neocons are re-elected. We believe that the stock, bond and real estate markets will fall and gold and silver and shares will proceed higher. Interest rates will rise as well as M3 in order to stave off deflation. Pension and profit sharing plans will be unable to fulfill their obligations to their retirees. Medical care coverage and quality will drop precipitously and their costs will continue to rise. We will be occupying Iraq after Mr. Bush is out of office. A selective service draft will be implemented so we can occupy Iran and Syria in order to control their oil and sustain geopolitical advantage. You can also expect continuing coercive pressure via the Patriot Acts I and II. Government will assume an iron fist as it progressively suppresses the American public, which will create an intense climate of violence. The US will evolve into a visual criminal state. The elitists and our government will be exposed for exactly what they are. Presently a psychological climate is being cultivated for the acceptance of martial law, which will be followed by the entrance of military personnel into politics. This will be presented as a solution to the rising level of violence as a result of unemployment and personal bankruptcy. The government’s vast databases will be employed to locate possible anti-government dissidents, who will be collected and put into internment camps. These are just some of the things we can expect to happen with another four years under George and the neocons. Unfortunately, we can expect similar results under John Kerry, although the process will take longer. That is why we encourage voting for the Constitution Party.

The government has dropped all charges against a translator working at Guantanamo Bay who has been imprisoned for a year. This is the latest in a long line of botched terrorism investigations. Of the nearly 1,200 individuals imprisoned on immigration violations, not one has been convicted of a terrorist offense. None of the jailed received compensation.

Ford Motor Company will close its Jaguar factories in Britain, which will entail more layoffs of 1575 workers and sell its Formula One business. It is moving closer and closer to being totally a financial service business and will eventually sell its auto and truck business to foreign interests, who will then produce vehicles and export them to the US.

In a major opinion essay by the head of the Economics Department of China Foreign Affairs University, it was argued that China stands to suffer huge losses if it continues to hold most of its foreign exchange reserves in US dollars and he advocated converting those dollars into euros and hard assets, just as we have advocated for five years. China has already averaged 20% losses on its dollar holding and stands to lose at least 30% more. Gold wasn’t mentioned but does not have to be. We know China has been a buyer. Such a move by China toward self-preservation would drive the dollar down and interest rates and gold and silver up. It is now becoming more evident to the dunderheads in the brokerage and investment banking community that the Fed can no longer hold up the market and suppress gold and silver. Next May when the Blanchard lawsuit against Barrick Gold and JP Morgan Chase are adjudicated, the world will be served up one of the biggest financial scandals in history. Under George and the neocons we have seen one of the most disastrous fiscal collapses of any government in history. At the end of 2003 China held $403.3 billion in its foreign reserves and as of this past June it held a staggering $470.6 billion. Of that $480 billion almost $300 billion was in US dollar assets. Another 30% dollar correction would cost China almost $100 billion. We have been citing these possible losses for the past two years. There is absolutely no question China in its own self interest has to soon start selling dollars for other currencies and gold. It is only a matter of when.

American cannot continue as it has under the elitist yoke of Sir Alan Greenspan great creator of money and credit. We have had the leading economic indicators fall three months in a row; job recovery is virtually non-existent and 70% of GDP growth comes from consumers who are buried in debt. Why would any country in its right mind want to hold fiat dollars? Yet, foreign ownership of our Treasuries has increased 40% in the last few years. Foreign ownership of Agencies and Corporate Bonds has risen 27% and 25% respectively. Foreigners cannot be that stupid – can they? Americans have squandered their savings and are now drawing on the world’s savings to feed their lust for further reckless consumption. China and Japan are our financiers of last resort. In so doing, they have put their countries economies and their survival at great risk. If they continue to buy our debt they will go down with us. We do not believe that China will allow that to happen. Japan, ever since WWII, when the ruling Japanese elite was allowed to keep the billions of dollars in gold, silver, platinum, precious stones and commodities they stole from the victims they murdered from country to country in a deal with the US elitists, have been in the conspiracy’s back pocket. Thus, they will buy US Treasury paper and Agency paper until the bitter end. Then again, Japan has never recovered from the depression they are in and the minute the world economy slows down, which it is currently doing, they will slip back into depression. All serious students of international economics and finance know the game is over and what we are seeing is unsustainable. Unfortunately, most of our citizens and professionals have been taken in by the new paradigmers and liars we call businessmen and politicians. We have a savings rate of 1.9% that just one year ago was 0.4%. Our current account deficit of 5.7% can only lead to hyperinflation and another Weimar scenario. In 1923 Germans got paid twice a day with wheel barrels full of money. That is what brought Adolph Hitler and the National Socialist Party to Power. How can an economy recover when investment is 60% below levels prevailing in 2000?

Meanwhile, federal, state and local governments combined went from a surplus of 2.4% to a deficit of 3.1%. We are sucking up 80% of the world’s savings so we can keep the party going. We have gone from a foreign reserve surplus in 1980 of $36 billion to a deficit of $2.4 trillion in 2003, or 24% of GDP. Unfortunately, it is getting worse daily. In just three more years of this profligacy our indebtedness will be 50% of GDP. Our international indebtedness will be 300% of exports by the end of this year.

America has become a banana republic. Foreign individuals, funds, and professionals do not invest here any more, only foreign central banks. Asian central banks hold $2.2 trillion or 80% of the world’s foreign exchange reserves, of which 70% is in US dollars. Japan owns $825 billion and China over $480 billion. A 30% dollar correction will cost these holders collectively over $400 billion. China is the key. They now run the show and they are setting themselves up to knock the US out of first place and fill that position. China has already gone too far and when the plug is pulled they will go down the tubes with everyone else and they have the most to lose. China is in over their heads. They do not have the expertise of the elitists. They are the weak link and they will cut and run. When they do, the world will not know what hit them.

The Federal Voting Assistance Program (FVAP) web site, www.FVAP has been shut down by the Pentagon for unexplained reasons. The block will keep some of the seven million expatriates from voting by October 2. The democrats have set up an alternative site to handle absentee ballot requests. What we have gleaned from research is that millions of expats who have not voted in many years are registering and they will not be voting for George Bush.

Checkpoint, a $600 million company, has developed prototype labels containing RFID spy-chips for Abercrombie and Fitch, Calvin Klein and Champion Sportswear. The buyers would be identified and tracked as they pass through checkpoint-equipped doorways and store portals, as they stand near Checkpoint’s retail smart shelves containing hidden RFID reader devices or when they enter Checkpoint’s planned RFID smart zones in stores. If you look at the exit portal you’ll see Checkpoint’s name. There is no legal requirement for companies to tell consumers when products they buy contain RFID tags. Big Brother lives. Those of you who do not believe there will be a draft should consider the following. The Army is stretched to the limit as is the Guard and Reserve. 300 new recruiters are in the field. Bonuses for new recruits have risen by 67% from $10,000 to $15,000 for hard-to-fill specialties. Extended tours have discouraged reenlistment. Then there are the individual ready reserve call-ups. Troops have to be moved from Korea at a time when war could easily break out. We are short 50,000 men in Iraq and 20,000 in Afghanistan and George and the neocons and the Israeli’s want to take out Syria and Iran next year. There is a distinct possibility that a vote for Bush is a vote to send our sons, daughters and grandchildren to death in a foreign land.

The drug companies are rolling out their heavy artillery as it looks like massive buying of drugs from Canada is about to begin. Suffolk University’s Beacon Hill Institute says 3,957 jobs and $246.9 million in lost economic activity in Massachusetts will be lost by 2010 if drugs flow from Canada. A University of Michigan study funded by Pfizer says Michigan will lose 20,000 to 133,000 jobs over the next decade. Firstly, we don’t believe them and secondly, if they were so concerned about the loss of jobs why haven’t they done something to stop free trade, outsourcing and globalization, which has cost our country millions of jobs. Cheaper drugs are far more important than job losses. People are dying because they cannot afford drugs. Why do we have to import them from Canada, why not directly import them here? We’ll tell you why not, because the drug companies will not export to the US. They have been gouging us for years and it is about to end. Pharma companies spend more money on advertising than they do on research. We believe the premise of less research is entirely false, just cut advertising. What isn’t emphasized in the Michigan report is that $19 billion would be saved by Michigan consumers over a 10 year period. The increase in drug prices should be limited to increases in the CPI increases. That would force drug companies to live with BLS lies. Profit increases in the industry average 18%. It is no wonder health care costs are up 14% a year. We have been screwed long enough. Incidentally, the new Medicare drug bill should be reversed. It is a subsidy to big business and nothing more.

We expect George and the neocons to ship 15,000 more troops to Iraq right after the election. That can only be accomplished by mobilizing the Reserves and National Guard followed by a Selective Service Draft. This as US combat intelligence in Iraq does not seem to know who the insurgents are, where they are, how many there are, or what the plan to do. There is just no intelligence. George and the neocons do not have a clue to what is really going on.

Democratic Rep. Deana Degette is seeking a congressional investigation into allegations that Iraq war veterans near the end of their enlistments were given a chance between re-enlisting or being sent back to Iraq. The Army and the Pentagon deny the charge but there are plenty of men ready to testify. In addition, the Pentagon issued its latest stop-loss order in June, forcing thousands of men and women to stay in the military and requiring many to return to combat duty well beyond their agreed-upon period of active service. This is a back-end draft where personnel are not serving voluntarily. This stop-loss has killed morale. Actually the shortage goes back to the Clinton Administration, which cut 500,000 troops. None of this is reflected in the presidential election. That is the discussion of unwise militarization of American foreign policy and waging perpetual war for perpetual peace. George Bush has alienated our allies, isolated us from the world community, and inflamed global anti-Americanism, Islamic and secular alike. Yet, conveniently Mr. Kerry does not use these issues.

Hedonics and redefinitions have understated the CPI by 2.7% a year, thus Social Security recipients should be receiving a 43% higher payout.

The first criminal trial involving former Enron executives has begun and Merrill Lynch has been charged along with them for conspiracy and fraud. It’s about time these elitists have been brought before criminal courts. This has been going on for years and finally some of them are going to pay.

The SEC is considering a civil action against American International Group alleging violations of federal securities laws. AIG helped Pittsburgh-based PNC create three special-purpose entities to whisk $762 million in underperforming loans and volatile-capital investments off PNC’s balance sheets. The beat goes on. T.D. Waterhouse Services, the discount brokerage unit of Canada’s Toronto Dominion Bank, agreed to pay $2 million in fines for making kick backs to advisors to win business. The corrupt financial relationships in the brokerage continue. $2 million is chump change to TD bank.

Maurice Hank Greenberg, former OSS-CIA operative, and a guiding light at the Council on Foreign Relations, will be charged by the SEC for cooking AIG’s books. This is a $400 billion company that finds it necessary to steal from the public. These antics by Greenberg do not surprise us.

A federal judge in Manhattan struck down a portion of the USA Patriot Act requiring Internet and telephone companies to surrender customer records sought in terrorism investigations and barring notice to clients that their data was handed over.

One of the things that really disturbs us is corporate welfare. We are very pro-business, but we find corporate subsidies bordering on the criminal. McDonald’s does $40 billion in sales a year and receives $1.6 million from the Department of Agriculture to promote Big Mac burgers in Europe. Congress gives subsides of $300,000 to Campbell Soup; $1.4 billion to IBM; $3 million to the California Raisin Board; $671 million to GE and $4.9 million to Gallo Wineries. This is truly pillage of the public treasury in which our tax dollars reside. It is certainly hard to justify these gifts when children go hungry, have no medical care, and the elderly cannot afford food or medicine. This is a perfect example of elitists looting our citizens.