International Forecaster Weekly

Stupidity, The Mantra Of America,

Stupidity, the mantra of America, or why the denial of the credit economy... the lunacy of Caligula Bush, keeping good people out of america, and why businessmen and tourists wont set foot in America anymore. 

Bob Chapman | December 31, 2006

Stupidity has become a mantra in America. Evidentially Americans like to be brainwashed. You explain how their government is lying to them and screwing them and they do not want to hear about it. Corporate CEO’s, Wall Street, government economists and analysts do not get it, or don’t want to get it. You tell these thinkers real inflation is over 10% and the answer you get is the Fed has tightened very aggressively and inflation is not going to be a problem. When you explain the issuance of money and credit that has been over 12% annualized for four years and has neutralized the beneficial affect of higher rates, they do not want to hear about it. Such truth might ruin their day or make them think there could be problems. The level of interest rates only tells half the story as we have just pointed out. The other half is the expansion or contraction of money and credit. Of course, the Fed, government, Wall Street, corporate America and its mouthpiece CNBC never want to talk about this. Every week a few others and we publish those statistics and we and two other publish estimated M3 figures. All the others are in a conspiracy of silence or they are too dumb to understand. Who cares if the total expansion of money and credit is running at 14%, not only in the US, but in the EU as well? ABS securities are only 7% below last year’s record and CDO issuance is running more than 65% above last year. International reserve assets are up almost 20% as central banks collect more and more fiat currencies, while they sell off their only real asset, gold. Foreigners are buying US Treasuries and Agencies, and have increased their participation at an annual rate of 15%. How can professionals conceivably believe money is tight or it is under control? They cannot tighten interest rates any further or stop creating more money and credit because the system will collapse. On the other hand if they do not raise rates the world will eventually flee from the dollar. If they lower them the dollar will collapse as will the world monetary system. Do not expect the Fed under Mr. Bernanke to do anything more or different than Sir Alan Greenspan did. The Fed doesn’t and can’t deal with the bubbles they have created. If they did they would have to raise interest rates to 14% or more and the economy would suffer a depression. The Fed is enmeshed in a trap of its own making.

What is happening now is the Fed is attempting to impose a bubble on a bubble, an exercise doomed to failure. At least that is what monetary history tells us. That means a continuing decline in the value of the dollar. If as we are now seeing other major currencies join in on the money and credit expansion that leaves gold and silver as the only safe harbors. That is why these other major currencies are doing what they are doing, and at the same time central banks are attempting to suppress gold. In the final analysis the Fed and other central banks simply cannot afford to tighten due to the current unserviceable debt. They have no choice but hyperinflation. This is why the upward moves in gold and silver are still after six years of a bull market only in their infancy.

As we wrote six months ago the elitists wanted a withdrawal from the Middle East as soon as possible. It was then that Congress was instructed to form the Iraq Study Group by the elitists to bring about a quick orderly withdrawal from the region. Then the plan was to use diplomatic and commercial means to further their interests. This plan was forced because of the ineptitude of George and the neocons. This man is President of the United States and he tells us, “God told me to strike at al Qaeda and I struck them, and then he instructed me to strike at Saddam, which I did, and now I am determined to solve the problem of the Middle East.” This guy is Looney Tunes. He truly believes he is the reincarnation of Nero or Caligula. The Christianity is a façade. He is not only insane, but he is the scum of the earth hiding behind Christianity and the scam known as the war on terror. This is the man who calls Iranian and Syrian leaders evil. His accomplice in these evil acts is Dick Cheney, a draft dodger who said, “We do not negotiate with evil. We defeat it.” This is the man who hid behind his wife’s skirts to evade the draft. She in turn in time elevated him within the Illuminati structure. What a sorry bunch of slime balls. This is the group that wants to destroy the Muslim heathens using our military. A holy war for profit. War is a continuation of state policy. A policy based on greed and founded on evil.

Our new Defense Secretary is one nasty piece of work. Soon after his appointment he had to rush to stop a military mutiny of the 6th Battalion based in Anbar. They refused to leave their base in Ramadi, the capital of Anbar province.

Gates also had to address the issue of Americans once having surrendered to insurgents asking for help to be smuggled out to Turkey across Mosul and Syria-Iraq borders in order to request political asylum. They told their captors they did not want to fight Iraqis but were forced too. Gates during his visit approved an attack on Ramadi. This is the news you are not getting.


Business travelers fell 10% in 2005 from 2004. Foreigners say the US entry process is rated by far the worst by a margin of 2 to 1. The Travel Industry Association says the situation is going to have disastrous implications for the US economy. The National Foreign Trade Council says the entry rules cost US businesses $31 billion in lost sales and higher expenses between 2002 and 2004. Foreign travelers are choosing other destinations that are fueling the growth of rival commercial and financial centers at the expense of the US. Europe is a major beneficiary.

Business-wise foreign customers of US corporations are demanding meetings outside the US. They simply won’t set foot in our country. Horror stories abound of foreign businessmen and executives being detained by customs officers for hours in windowless rooms, only to be released without explanation. These kinds of stories have run rampant throughout the world and the result is our positive business climate of the past has been destroyed. Customs and Immigration on orders from Homeland Security is totally out of control. Customs officials are even confiscation laptops and searching the files. There is no justification for what is being done when our southern border is virtually wide open and our President and Congress won’t fund a border fence.