International Forecaster Weekly

Debt Threatens The Entire System

Russia recognizes breakaway states, US election Race now officially under way,new agendas promised, the Rationale of Caligula revisited, A hundred more American banks set to fail next year, Pardons for traitors

Bob Chapman | August 28, 2008

Russian President Dmitry Medvedev announced Tuesday that his country will grant diplomatic recognition to the separatist regions of Abkhazia and South Ossetia, thereby treating them as states that are independent from the Republic of Georgia, a former province of the Soviet Union that the US and Israel have made into a puppet state to rattle Russia's cage and to have a presence near a key oil pipeline that supplies black gold from the Caspian Sea area to Israel, to Europe and to South Asia via Eilat, Israel and the Red Sea.  The White House immediately denounced these actions as "irrational."  Apparently, the White House felt that the former Soviet Union lacked a proper rationale for its recognition of these separatist states.  You know, like the rationale Caligula used to justify the recognition of Kosovo as a state independent of Serbia, namely, to set up an illicit European drug distribution center manned by vicious drug-running Muslim thugs for purposes of transporting the tons of opium being extracted from the bumper crop of poppies being grown under the watchful eye of CIA black ops in Afghanistan.  That way, the dark side of the CIA and its Muslim terrorist division will have plenty of money for their next false-flag attack in furtherance of plans to create a one-world government and to keep the ongoing, phony "War on Terror" alive.  Now, that's what we call a rationale!  Come on, Russia, let's see you top that one!!!  Anything less than that is just downright "irrational" behavior.  The US government's arrogance, double standards and blatant hypocrisy continue unabated.  Georgia will now be destabilized by Russian covert operations run out of the new states which will give their blessing to Russian protection and Russian troops.  Those operations are already underway and started most likely with the mine planted to temporarily take out the central east-west Georgian railroad system, and Russia will soon control all oil and gas emanating from the Caspian Sea area.  That's what happens when you send in US-trained Georgian troops and US and Israeli mercenaries to slaughter some 1400 South Ossetian civilians being protected by Russian troops under a UN peacekeeping mission.  What were these morons thinking? Another "brilliant" move by the neocons and the forces of "Chaos."  And they have the gall to say that the latest Russian actions were "irrational?"  Like slaughtering civilians and inviting Russian aggression in the area of a crucial oil pipeline is "rational?"  We are completely stupefied by US actions throughout this whole Georgian affair, and will now attempt to continue to write the remainder of this issue of the IF in a state of stunned amazement.  Truth is definitely stranger than fiction.  There has been some talk to the effect that the US and Israel were hoping to scare away the Russian presence from the area of Georgia so it could be used as an attack base for operations against Iran, but that possible explanation needs further corroboration before we can accept it because we had to know that Russia is not that stupid and would never have allowed such a thing to take place right at their own border.

Well, the Jackass and Dumbo conventions to elect candidates for the US Presidency are now underway.  We are forced to watch and listen to them a few minutes at a time to keep from getting nauseated by the inane tripe and pathological lies that are being fed to the screaming, sycophant idiots known as the Sheople of the United States of America.  It is at times like these that we are ashamed to be called US citizens.  The whole system has been rigged for over a century.  Both Jackass and Dumbo candidates are picked by the elitists and then stuffed down the throats of the sheople.  And now they even own the voting machines, so they can make sure they get the results they would prefer, although a win by either candidate moves their one-world agenda forward as their crucial issues are split between the two party platforms.  And this year we have two Manchurian candidates, either of whom will take our country into chaos and fascism in very short order.  The sheople will have the unspeakable privilege of electing their own executioner.  It is like being asked to dig your own grave before being shot, kind of like a voter's Holocaust.  Should you cast your vote for Reprobate/Sociopath No. 1, or for Reprobate/Sociopath No. 2?  Playing Russian roulette would probably be more fun than casting a vote for any of the lame Jackasses and Dumbos being served up by the elitists.  You should write in Ron Paul for President, and get rid of all the other traitorous, incumbent scum at the polls in November.  We can't get Congress to legislate term limits, so we as citizens should impose our own term limits by voting out all incumbents in every election.  That is the only way to weed out the embedded graft and corruption that results from multiple consecutive terms in office.  That is the only way that the evil plans of the elitists can be defeated from a political perspective short of civil unrest and revolution.  The only other way to beat them is to immediately unload and run down the price of stocks, bonds and derivatives while simultaneously running up precious metals and commodities before the elitists can execute "The Big Sting Two" as described in previous issues.  If they are forced to abort The Big Sting Two and put all their dollar-denominated paper assets into fire sales after precious metals and commodities have been run up to sky-high levels, their financial power base will be destroyed and it will take them many decades to revive it. They will then be unable to finance their evil plans, or to force the sheople to pay for them.  Manipulation would be impossible without their financial power base in tact, or at least limping along as is now the case.  Circumstances and forces outside the US may also force the abortion of The Big Sting Two, but we have to do our part and not rely on foreigners to defeat the Illuminati and do our dirty work for us.

We love to hear about how the Democrats gave us a strong economy under Clinton.  Clinton's administration just happened to coincide with the elitists' agenda for a strong dollar in order to give their transnational conglomerates maximum buying power while spreading their tentacles worldwide.  Besides destroying our military and giving our nuclear secrets to the Chinese, Clinton promoted free trade, globalization, off-shoring, outsourcing and legal and illegal immigration which have cost us over five million good-paying jobs.  He gave us the North American Free Trade Agreement (known as "NAFTA," giving you the SHAFTA), which was characterized by Ross Perot as a "large sucking sound" where many of our jobs would be vacuumed up by Mexico and Canada.  He repealed the Glass-Steagall Act, which is the main cause behind the credit-crunch and derivative meltdown and which will be the ultimate triggering cause for the destruction of the US and world economies.  The Clinton Administration also oversaw the LTCM debacle and the bursting of the fraud-laden bubble, as well as the inside-job, false-flag attacks on the Oklahoma Federal Building and  the World Trade Center (first attack).  And let's not forget the war in Yugoslavia where we slaughtered the Serbs in order to set up the drug-running, Muslim terrorist state of Kosovo for the enrichment of US elitist and European Black Nobility in the opium trade from the poppy fields which the elitists planned to take over in Afghanistan at the beginning of the Bush Administration following their false-flag attack on 911, which was also set up during the "wonderful" Clinton Administration.  Add in the sex scandals and the scores of dead bodies of people who knew to much about the Clintons' nefarious dealings, as well as the assassination of JFK, Jr., and you can see that while the Caligula Administration has done untold damage to our country and our economy, much of it was set up during the Clinton Administration.  This shows you in spades that there is not a dime's bit of difference between the Jackasses and the Dumbos, whose candidates are puppets and marionettes dancing on strings wielded by elitists who are neither Jackasses or Dumbos, but who are just plain evil and satanic.  There is only one agenda, which members of both parties serve like slobbering dogs looking for crumbs off the elitists' table.

What kind of economic agenda will we end up with this time?  Will it be tax and spend (which is usually characteristic of Jackasses), or spend and inflate (which is usually characteristic of Dumbos)?  To be sure, it will be a whole lot of both, unfortunately.  The magnitude of financial losses are going to be out-of-this-world, and increased taxes and inflation (itself an insidious stealth tax) will be the inevitable byproduct.  All the big institutional players are interconnected.  When you bail one, another goes under.  When you try to bail the one that just went under, you create havoc for even more players.  There are two sides to many trades involving options, futures, swaps and other financial derivatives, and if you help one side of such trades, you are going to hurt the other.  Just like we had a daisy chain of fraud underlying the, real estate, subprime and credit-crunch debacles, we will now have a daisy chain of defaults and bankruptcies that will totally swamp and wipe out the whole gamut of corporate, economic and financial systems.  The losses will eventually reach into the tens of trillions once the credit default swaps and interest rate swaps, whose notional principal now tops one quadrillion dollars, add their damages to the already gargantuan, ever-increasing, ever-accumulating losses from declining real estate values, from crashing and burning stock markets, from what will be the biggest bear market in bonds of all time caused by double digit interest rates and hyperinflation and from piles of subprime, Alt-A, Option ARM, Jumbo and Prime mortgage bonds and derivatives in thermonuclear meltdown.  Then add in monumental losses from such things as bank failures, corporate bankruptcies, hedge fund implosions, totally sucked-dry governmental and non-governmental insurers of bonds, pension funds and bank deposits like Fannie Mae, Freddie Mac, AMBAC, the FDIC and the PBGC, destroyed pension and endowment funds and municipalities in total breakdown.  For good measure, throw in lost wages that would have been otherwise earned by one out every three Americans who will eventually be unemployed, lost tax revenues from losses and reduced income and lost consumer spending and corporate profits from a flagging, tanking economy, and you have behemoth losses that are quite simply too big to be bailed, either by taxpayers or otherwise.  As a result, all of our socio-economic and political systems are doomed for chaos and revolution.  Out of this chaos, the elitists hope to mold the ultimate feudal system, by nationalizing everything they can to form a corporatist, fascist state that would surprise even George Orwell, whose Big Brother society is only a quarter century off the mark.  We believe that their efforts to bring this about will fail miserably.  They have defeated themselves.  Their own greed and avarice, coupled with their own stupidity and arrogance, as well as their violence against, and lack of fair dealings with, non-Illuminist nations is going to bring them down.  You had best have a whole pile of gold, silver and their related shares when the Illuminist "House of Usher" comes crashing down around their ears.  


Russian troops may be leaving Georgia, but the US-Israeli funded, supplied and directed invasion has set Russia on a new course. Russia has no intention of restarting what once was, either on the ground or diplomatically. There is no going back for Russia. They are seizing land that abuts the two enclaves allied with Russia, effectively extending its zone of influence. Russia is nearing formal recognition of independence of the enclaves, South Ossetia and Abkhazia. If NATO can do this in Kosovo, Russia can do so in Georgia.

In the fallout from the invasion Russia wants Georgian President Mikheil Saakashvili out of office. He is detested by the Russians who know him only as another Illuminist puppet. Thus, we expect Russia will now proceed to put ceaseless economic and military pressure on Georgia.

The bulk of Russian troops are gone from Georgia, but some have stayed behind to make sure Georgia doesn’t get any more idiotic ideas. That includes 500 troops along the South Ossetia border in Georgia. These are buffer zones and their presence caused Russia to break, the ceasefire agreement. Then again the US, UK and Europe promised not to extend NATO into Eastern Europe, but yet they did so. They also, via George Soros’ NGO’s and the CIA managed to rig elections in a number of countries. The Russian Foreign Ministry believes Mr. Saakashvili is unstable and will not negotiate directly with him, “for reasons absolutely understandable to any sensible (sane) person.”

The West talks about penalties such as non-acceptance to WTO, or being ejected from the G-8. In the meantime part of that $1 billion being lined up as a gift from the US Congress to Georgia for invading South Ossetia and that your President says it will be used to pay off the families who lost relatives in the disastrous war. How about the 2,000 plus Russian civilians in South Ossetina that were murdered by Georgian-American and Israeli mercenaries? We should send $2 million to the Russians and deduct it from what we would have given to Israel. now about the 2,000 plus Russian civililans in South Ossetia.

This is American covert foreign policy at work. They and the Israelis have made a shambles of things.

There is a good chance over the next year that more than 100 American banks could fail. This could be failures’ aggregating more than $100 billion. The question is where does the money come from to pay for this because the FDIC has maybe $29 billion left after they cover current bank failure loses. The banks, who are members, cannot contribute to any extent so the taxpayer will have to fund the losses.

We were just informed about how major brokerage firms get around being bought in on illegal naked shorts. Often another brokerage house is their prime broker for stock borrowings, and those short would get a failure to deliver warning from the lending broker, which eventually buy them in and shortly after they would have somebody watch the level 2 screen for the huge buyer of the naked short shares. They would hit the bid hard and sell effectively neutralizing the buy in. this process can be used indefinitely. The SEC knows this, so why don’t they stop it?

We mentioned some time ago that Massachusetts’s residents will vote on whether to cut their 5.3% state tax by 50% next year and 50% in 2010. Six years ago residents voted for the same issue getting 45%. That was in better economic times. Today voters are angered by mindless, bloated spending and politicians catering to rich corporations and the wealthy.

North Dakota will decide on a 50% reduction in state taxes; Nevada to restrict property tax increases and Minnesota to raise sales taxes by 3/8%.

In Massachusetts the measure would return an average of $3,700 to each of 3.4 million taxpayers.

Overall Americans are just disgusted with the immoral actions of elected representatives. Who can blame them, although problems are far greater at the federal level?

Home prices have declined 20% to 50% and property taxes have not declined in many areas.

These actions tell us people are fed up and well they should be. Again except for Ron Paul vote them all out of office. We predict the vote in Massachusetts will carry and many other states will follow.

Israeli spy Larry Franklin received 12 years in prison, but curiously he remains free – if you can believe that. The reason is that our outgoing president will pardon him before he leaves office for treason.

Next comes the AIPAC, American Israel Public Affairs Committee, Steven Rosen and Keith Weissman, trial for treason, which has been repeatedly postponed. The trial is supposed to start on October 28, 2008.

If Rosen and Weissman are found innocent, Franklin will walk free and AIPAC will regain its reputation. If found guilty the three will be pardoned and AIPAC will lose its reputation. Can you imagine the message to Americans and the world – a pardon for these three would generate.