International Forecaster Weekly

Potential For Open Revolt At Upcoming G 20 Meeting

Showdown at G-20, half a million demonstrators, billions and trillions in monetizations still to come, big foreign ownership of US debt, no real political will to tackle banking crisis in US, all these debts now far too large to be repaid.

Bob Chapman | April 1, 2009

This week the G-20 meets. There will be several serious items on the agenda but the most important is the fate of the dollar as a world reserve currency. The US elitists needless to say want the dollar to retain its standing and the Europeans, Chinese, Iranians and Russians want a new international trading unit. Foreigners have lost respect, trust and confidence in the dollar and in American financial management. They are tired of taking losses and subsidizing the incredible American lifestyle. There is no consistency and the insiders are propping up the financial community, and not the economy. They disagree with zero interest rates and the wanton increase in money and credit displayed by the US and England.

The Fed’s Ben Bernanke’s plan of throwing money at everything doesn’t work and the European Illuminists know that. Treasury Secretary little Timmy Geithner is viewed as an incompetent with a poor record. Thus, America is stuck with the monetizing twins Ben and Timmy. As we said in previous issues the first $300 billion for buying Treasuries will be followed by another $1 trillion and eventually $5 trillion or more. Inflation is going to go through the roof. It is no wonder foreigners are upset. They now know the longer they wait and hold dollars the more expensive it will be for them.

From here on out things are going to get a lot nastier. They are not going to be dictated to by the US anymore. They are tired of the blatant corruption and arrogance that passes for diplomacy. The US is entrapped by their own debt and they cannot extricate themselves. Most everyone wants a change. As a result of this warfare worldwide, people are going to lose assets, the exception are gold and silver, which will carry them through.

During the remainder of the year the US dollar should continue to trend downward as we wrote five months ago. That will be in spite of another $200 billion of de-leveraging from Hedge Funds.

You have to keep in mind those foreigners own more than 50% of US debt securities worth almost $3 trillion.

Free trade, globalization, offshoring and outsourcing will be a major subject as many nations begin to subsidize domestic industries and put tariffs on goods. The elitists do not want tariffs, but we believe they are inevitable.

The Chinese are big US debt holders, and they have warned the US to stop creating more excessive debt, because they believe it will lead to devaluation. China is making a request that the dollar be replaced as the world’s reserve currency at the G-20 meeting. The Chinese are bringing this up in spite of the fact that the US made a special deal with them, secretly, that their Treasury holdings are convertible into US factories, buildings, land and other tangible items via eminent domain.

In another unilateral move China is in the process of replacing the dollar as a reserve currency in Asia, supplanting the yaun in its place. China is beginning to impose yuan hegemony over Asia. This is very problematic for the US and its economic, financial and political policies in the region. Our guess is if China doesn’t get what it wants out of the G-20 meeting it will start dumping Treasuries. That means more monetization by the Fed and more hyperinflation. Due to corporate greed and via plans for world government, the world financial scene has been turned upside down and as a result the dollar has become unreliable. If China successfully follows this course it could be Asia uses the yuan and the rest of the world the dollar or a basket of currencies. All in all we will have a better idea at the end of the week. If the dollar falters because a new currency unit is going to be introduced that should send gold and silver higher.

Monetization of Treasury debt is as bad as it gets $300 billion is a considerable amount of money and as we said last issue we could easily exceed $5 trillion. This is an act of total desperation. There is no question the US is in serious trouble. Foreigners either do not have the dollars to invest or they won’t invest and the Fed is the only entity that can take on that volume of debt in today’s markets. It just shows again that the US government, along with Wall Street and banking is out of control. What they are doing is not going to work and they know it. No matter how much money they print all they are doing is addressing past debt, as a result the Fed is sacrificing the dollar. Yes, we know there will be $200 billion more in de-leveraging this year, but that won’t keep the dollar from falling. The British and the Swiss are also monetizing, a path others will follow, which will give gold and silver a field day. Prices in England are about to fly again and this month they should begin to rise in the US again. As this takes place wages are not increasing.

We now have government by bankers and Wall Street steeped in abject corruption. Bypassing Congress and the people, secretly issuing trillions of dollars in money and credit and we don’t, as far as they are concerned, have a need to know.

Just to give you an idea of the insider dealing, Bank of America is aggressively bidding for toxic debt in the open market knowing that our Treasury will pay more for the debt then BoA paid. Banks are front running the Treasury’s program.

It was quite shocking to the world when outgoing Czech PM Topolanek, charactered the US plan to combat the deepening depression as the road to hell.” At the same time in England the British member of the European Parliament Daniel Hannan said what England was doing was inflationary. As a result the dollar took a hit but did recover somewhat later in the week. There was the usual smoke and mirrors and propaganda that everyone was working together and that all would be well.

Politicians worldwide are hearing from their constituents and we could well see an open revolt at the G-20 meeting. They expect up to 500,000 demonstrators.

Citizens worldwide are being robbed of their buying power as inflation like a thief in the night steals their money. The spending levels of the past of 72% of GDP are history. We are now at 70% and headed to 64.5%. Banks once encouraged borrowing, but not any more as they cut credit losses. We need savings and debt limitations along with purging and that is the opposite of what government, banking and Wall Street want. They want to delay the pain indefinitely and that only makes the problem worse.

It has been 20 months since the financial and economic underpinnings of America started to really come unglued. Yet we can’t get an honest answer out of anyone in Washington or New York. We were promised a new era of accountability, transparence and forthrightness and we’ve received nothing except you don’t have a need to know or it is a state secret. We cannot even find out how much money is left in the $700 billion financial-rescue program. If you back into the numbers you come up with about $53 billion, which means 92% has been committed. The Treasury has yet, even upon request, provided an official accounting. This past week our Treasury Secretary Tiny Tim twice officially refused to say what was left. When he spoke before the CFR, Council on Foreign Relations, he even refused to answer. The retort was very, very, reasonable amounts of money. He told CNBC the same thing. There is no honesty even among peers.

With that in mind, this same Treasury Secretary wants to give the Fed the power not only to seize all banks, but also private business, such as AIG and anything else within their sight.

The plan so far, if you can call it that, is seizure of companies by government; then these tasty morsels will be sold off at bargain basement prices to fellow Illuminists. The question is can these entities be sold off quickly enough, or before Congress cuts off the government’s funding?

Government, controlled from behind the scenes by JP Morgan Chase and Goldman Sachs, wants to seize anything it wants, hence Treasury’s new demand for new regulatory powers. It is a race against time before the derivative monster collapses and takes everything else with it, except gold and silver. Doesn’t anyone realize all this government, corporate and individual debt can never be repaid? It is a giant scam. Even the derivatives that were written were naked. There is nothing in the till; it is empty. These Illuminists want to nationalize everything in sight, like good fascists, and then sell all of it back to what is supposed to be private interests for a pittance. As for more money for little Timmy and his gang of crooks, it is a long shot. The American public knows what is going on and is furious and disgusted. Ask any Congressmen – or lady. Worse yet Congress and any citizen with half a brain knows the money is all gone and is never coming back. Wait until the public finds out that the government is on the hook (i.e. the taxpayer) for an additional $340 billion to AIG, they will go berserk, especially during a depression.

Coming full circle, fellow Illuminists in Europe and Asia feel betrayed by American elitist intrigues. This might be why both the US and UK are finding it hard to sell debt. It could be payback time. The ghost of Brittan Woods is coming back to haunt those who for so long have controlled our government. Then again it could be this all is but an act and an excuse to take the world economic and financial system down.

In spite of the uproar we do not see the G-20 making any changes just yet, and as a result the dollar will remain under massive pressure. Russia and China, among others, will press for a new system, which includes gold backing. It will come in time and it won’t be voluntary. The US Illuminists will fight it every step of the way.

Some very sophisticated people have gotten the impression from business people and investors that the US does not have enough political will to take on the banking crisis once and for all. In what could be called a purging of the system. It is not a case of political will; it is a case of planning for world government. We cite again the factor most all experts leave out and that is the Illuminati and the part it plays in all of the things that affect our lives, our economy, our financial being and our government. You cannot come to the proper conclusions unless everything is factored in and that is where the elitist’s plans come apart.