International Forecaster Weekly

Oil Covers Failures

Oil covers failures... mental gymnastics ... A close shave for Gilette employees... Internet controls... free trade notes... NIH kickbacks... and more

Bob Chapman | March 7, 2005

Two years before the Iraq invasion we predicted perpetual war for perpetual peace. War was to be a cover for economic failure: an excuse to steal and control Iraq’s oil; a way of stopping Saddam Hussein from selling oil in euros, which could undermine the dollar and lead to its demise as the world’s reserve currency; a way to outflank Russia geopolitically and a method of setting up for the eventual invasion of Iran. We also predicted an event would take place, which would allow the invasion in the Middle East, probably Iraq. We set the date at 10/16 only 35 days after 9/11. That prediction occurred in the previous November, 10 months before 9/11. We knew the elitists needed a major event to justify invasion. In spite of George Bush’s denials, he in all likelihood will invade Iran. The elitists have to directly control Middle East oil and they cannot allow the new Iranian oil exchange to trade oil in euros and dollars. All over Washington, everyone knows an invasion is eminent. If they are correct and we invade, it could trigger the use of nuclear devices by both Israel and the US. Even if that did not happen, we could see war spread throughout the Middle East and into Asia. The invasion of Iraq was planned long before George and the neocons were first elected and we believe that the invasion of Iran was planned at the same time. We wrote about this probable scenario in 1992. These plans were laid some 15 years ago by elitists who are as evil and deranged as George W. Bush. We have already been told that clandestine commando infiltration has taken place over the past seven months marking facilities with homing devices so that they can be destroyed in an initial bombardment-preceding invasion. We are also told that Israeli commandos are operating extensively in Kurdish, northern Iraq with an Iranian terrorist group.

Much of the intelligence others and we have received has come from serving and former CIA personnel. The agency has been betrayed and purged by the very people they were assisting, the elitists. Many see the ultimate consequences of these wars and as real patriotic Americans they are in mutiny against their government, as are many other Americans. Our last two national elections were stolen from us and many Americans realize that. We must continue to expose what is really going on and who is guiding us headlong towards disaster.

We continue to hear debate over undervalued currencies, particularly in China and in Asia. We have said before, even if the dollar index fell from 82 to 65 or 70, the US and Europe would still not be able to compete with slaves’ wages. All the mental gymnastics in the world are not going to change that. The third world has no intention of letting their currencies or wages rise if that is preventable. We have said the only way to solve the problem is to raise interest rates and purge the world financial system or set up protective tariffs. The third world is not playing by the rules and the G8 governments refuse to act to protect their own economies. Any other arguments are blather and a waste of breath. The time for the G7 to act is now. The longer they wait the worse the pain. The system as we know it is terminal. Two years from now, it will have collapsed.

The geniuses at Bank of America tell us they have lost computer tapes containing personal information on 1.2 million federal employees, including some member of the US Senate. The lost or stolen data includes Social Security numbers and account information that could make customers of a federal government charge card program vulnerable to identity theft. Last week Choice Point, this week Bank of America. The loss and exposure of financial data can be financially damaging, but Congress should end this erosion of privacy rights, as more and more personal and financial information is collected and sold on databases, we get less and less privacy and more and more vulnerability to criminals and others.

No sooner was the ink dry on the Gillette-Proctor and Gamble deal and we find thousands of Gillette retirees may face diminished medical benefits. P&G, the surviving company, cannot make any changes for two years. Even after the two-year period, retirees’ pensions, which are held in trust, will be protected. After two years, P&G can do what they want. As you can see, you can work hard all your life for a company and not receive what you were promised. We can understand financial misfortune, but the theft of benefits is wrong and outrageous.

Last week our government lost a bid to obtain telephone records of two NY Times reporters in a major free speech battle over journalists’ rights to keep their resources secret from prosecutor’s probes. The ruling by a US District Judge who said reporters’ rights are protected under the First Amendment, which guaranties freedom of speech and press, will we are sure, be challenged in a higher court and be superceded by the Patriot Acts. Under those acts, you have no rights.

Retired Major General Alan Stretton says Iraq will end in disaster just like Vietnam. Eventually the Bush neocons will bow to public pressure and withdraw the troops, leaving behind a bloody mess. General Stretton is an Australian. Australia is sending another 45 troops to southern Iraq to protect Japanese engineers. The General said Australia should not have been involved in Iraq in the first place, as there were no WMD. He said, “This talk about fighting for democracy is absolute bullshit. The whole operation is flawed and Iraq could never be democratic.” Amen.

Senator Joe Lieberman (D-CT) and Senator John McCain (R-AZ) have introduced a resolution condemning Russian President Putin’s assault on democracy in Russia that violates the spirit of the industrialized democracies. This issue became part of the meeting between Putin and Bush in Slovakia. In question is Mr. Putin’s opinion that he does not believe that Iran is seeking to build nuclear weapons of mass destruction. That, of course, is diametrically opposed to the US-Israeli position. The other reason is the demise of all but one of some 20 oligarchs in Russia that were financed by merchant bankers from Europe, the main one of which was the Rothschilds. They were able to inject their wealth into Russia via their Russian contracts and were able to purchase whole industries for $0.05 on the dollar. Mr. Putin has put them all out of business. For those unpardonable sins Mr. Putin and Russia is now the enemy. The world media, which is controlled by these elitists for the last six months, has been staging a subtle attack on Mr. Putin. For these reasons Russia supposedly is violating democratic principals. This reflects the goals of our corporatist, fascist, and neocon dictatorship. They are again out to destroy Russia and Mr. Putin because they cannot control them.

Since 1994, both agreements, the World Trade Organization, WTO, and the North American Free Trade Agreement (NAFTA), our economy has been clobbered. Their laws, particularly their tax laws, have overridden our laws, in pricing of imports, and dictating how we are to conduct business in our own country. They have expedited the movement of manufacturing and service industries out of the US and have encouraged outsourcing. Over the last ten years, we have lost about ten million jobs from our economy.

If American companies want a binding legal opinion that effects their international trade they can only appeal to a dispute resolution panel of the WTO in Geneva, Switzerland. That is because our government has illegally ceded part of our sovereignty to the WTO. Our becoming WTO members was a transformational movement, a fundamental alteration of our system of government. The adoption of WTO was a major step toward world government.

We now have our President and many in Congress pushing for FTAA, the Free Trade Agreement of the Americans. Our resident lunatic has made it clear to Congress he wants this treaty signed soon. For us it is a blessing that now most South America countries do not want to sign it. They want a grouping of their own. They are tired of being exploited by world elitists. Be as it may our globalists in Washington will push hard for FTAA’s passage. When NAFTA was passed the famous pervert, member of the CFR and Trilateral Commission, Henry Kissinger said, ”it will represent the most creative step toward a new world order taken by any group of countries since the end of the Cold War”. “NAFTA is not a conventional trade agreement, but the architecture of a new international system.” David Rockefeller, CFR guiding light and founder of the Trilateral Commission said, “everything is in place, after 500 years, to build a true “new world” in the Western Hemisphere,” As Sir James Goldsmith said before passing, “Global free trade will force the poor of the rich countries to subsidize the rich in the poor countries.” This is what is happening in the transference of wealth and power from Europe and the US to China today. You can never compete with a population that can work for 90% less wages than you do. These treaties eventually will bring about social upheaval and revolution. The public does not have a clue about what is being done to them. Every household now has to have two workers and too many have to hold two or three jobs. That is because they have lost their good paying jobs to globalism, free trade and the third world. We are sowing the seeds of our own destruction as Karl Marx said in 1848, “Free trade breaks up old nationalists. It hastens social revolution.” What free trade does is siphon off America’s wealth and brings our economy to the level of the third world. FTAA must be stopped and we must withdraw from WTO and NAFTA. If we do not, our way of life will be destroyed and our world will be in chaos.

Since last June, the Fed has raised interest rates six times, intending to prevent the US economy from overheating, but instead the increases are having the opposite effect. They are spurring the economy, not reining it in. Sir Alan Greenspan’s and our government’s lies are coming home to roost. They are well aware why we are seeing this phenomenon. We are floating in a sea of liquidity and inflation is far higher than they tell us it is. The Fed plays dumb but they are in the bond markets every day suppressing yields, because if they do not do that and the ten-year US note goes to 5-1/4%, and it will choke off home refinancing. Then only home equity loans will be left to keep consumers spending. A 6-1/2% to 7-1/2% 30-year mortgage would cut new home mortgage originations by 50%, so you can understand why Mr. Greenspan does not understand. He does not want you and the investment community to know what he is up too. Since the 1-1/4% rise in overnight Fed rates, the ten-year note has fallen 30 base points. That is truly impossible under normal circumstance. Lower than normal interest rates have kept the housing bubble in tact and made increasing debt easer to carry. The Fed rate increases have not damped consumer or corporate spending, because that has not been allowed to be reflected in the real market. M3 may be up only 5.8% y-o-y, but bank loans are up 8.9%. The banks have been deliberately and subtly providing additional liquidity much of which, as a product can end up in US Treasury paper. Then there is the matter of foreign central banks increasing their M3’s by over 6% to keep the value of their currencies low and to buy dollars, which suppresses US Treasury yields and allows the US to increase its debt exponentially in spite of massive fiscal and current account deficits. You might say most every one of means is gambling in the bond market. They have to do something with their dollars and they do not want the system to collapse. You have massive lending and massive foreign fiat money creation, which ultimately will be disastrous. One wrong move and the house of cards will collapse. You saw the panic two weeks ago when South Korea, the fourth- largest holder of US Treasuries, said we are going to diversify some of our dollar holdings. The market came unglued, as did bond yields as the price of gold and silver took off. It does not take much to trigger calamity. In addition, inflation is rampant even the garbage collector knows that. If it were not true, how could you explain commercial loans including real estate rising 9.9%? We are adrift in a sea of liquidity and there is no escape. That is part of the reason why ten-year note yields cannot climb. They have become a depository for excess funds. We can guarantee you that long-term rates are going to rise in spite of what the Fed does and they know that. The Fed has spent four years flooding the world with money and credit and soon the result of their efforts will end, as it always ends, badly. Deliver us from evil. The UN wants to control the Internet. They said two weeks ago that they are laying the groundwork for the UN sponsored World Summit on the Information Society where they intend to make a final decision on whether it is time to try to control the Internet. That will be in Tunis in November. They will consider and discuss cyber-crime and E-mail spam and consider developing country requests that the UN control domain names and other issues. We know world elitists are behind such moves because French PM Jean-Pierre Raffarin has called for international rules to govern the net; international rules world citizens can rely on. Yes, from where, an interment camp? China is leading efforts to globalize Internet control, but allows its own citizens Internet access only with government surveillance. Done like a true police state. In order to inflict their new world order, the elitists know they have to totally control the media. They have to eliminate opposition and replace that opposition with their own controlled opposition. They must be able to control the Internet and its content to proceed and be successful. That is why publications, such as the IF are so important. They compile the news and views in a format that is easily understood and allows you to find out what is really happening out there and how it is going to affect your lives. The elitists, in order to stop the IF, if under UN control, would simply label it spam and your server would be forbidden to transmit it to you. Incidentally, that has already happened in a limited way over the past five years, as servers such as AOL acted unilaterally or were under orders to harass us from the government. This is where the elitists and the UN are headed and it is imperative that they are stopped. If they are not stopped the last bastion of media freedom will be lost.

We find it quite strange that investigators have found that about 100 researchers from NIH, National Institute of Health, did not engage in secret deals with pharmaceutical and biotechnology companies and the seeming improprieties were actually the result of errors by government investigators. If you believe that, you are a moron. This is just another government cover up. The NIH director has imposed severe new restrictions on the personal activities and finances of all the agency’s more than 5,000 employees and they are very upset. Congressional investigators found some 100 NIH employees guilty or taking kickbacks so why shouldn’t these moonlighters be banned from accepting even uncompensated professorships and board positions with professional societies when it leads to kickbacks? The NIH found no one guilty yet there is proof of scientists collecting thousands of dollars in fees, expenses and travel reimbursements for undisclosed activities. Hundreds of them have violated disclosure rules and should be fired. These same people want to take away your rights, vitamins, minerals, herbs and hormones to protect your health.