International Forecaster Weekly

Surviving the Coming Inflationary Debacle

Government ignores own antitrust laws, gold going to intergalactic space soon, lust for power will destroy elites, the power of monetary and energy trump cards, costs that drive inflation, neocons controlling the media

Bob Chapman | May 21, 2008

By virtue of their abject failure to support smaller domestic oil companies in their quest to tap our more-than-abundant local oil resources by implementing a floor for oil prices to protect these smaller producers against the evil, competition-killing efforts of the big oil companies, our current, and every previous, Congress and Presidential Administration have sold out the American public, and in the process, they have completely ignored every antitrust law on the books.  Our corrupt government has allowed big oil to overrun our economy in much the same way as they have allowed illegal aliens to overrun our borders.  Further, and with a goodly portion of poetic justice, this failure to support domestic wildcatters, which was orchestrated by the Illuminati as part of their plans for world dominance, will come back to haunt them.

 In the end, the Illuminati will fail because they have outsmarted themselves.

We have all the oil we need within our own borders, even excluding Alaska, Texas and the Gulf of Mexico, much of it extractable at $16 per barrel, but there it lies, our salvation from foreign extortion buried under thousands of feet of rocks, like a fire ladder that is not long enough to reach the level at which victims are trapped by a blazing inferno.  Their it all lies, in sufficient quantities in Montana and North Dakota alone, to provide multiple decades of freedom from foreign oil imports rendered untouchable by the big oil cartel's threat of oversupply and price manipulations in commodity markets which would violate every anti-trust law in the United States Code.

 Not to worry, such violations would go unpunished by the SEC and FTC because they are owned by the Illuminati, along with all relevant judges and courts, including the black-robed nine in the Supreme Court of the United States, who will do as they are told by their Illuminist handlers or face ruination or assassination.  Yes, there it all lies, the massive supply of local crude that could quickly drive oil prices down to reasonable levels and provide the spur to our domestic economy that could jolt us out of the upcoming recession and/or depression.  Instead we will all get a new war for profit shoved up our collective derrieres by the Illuminati, a new front that will be added to the responsibilities of our exhausted military in order to direct our attention away from the nefarious dealings of the Illuminati and away from the failings of both Dumbo and Jackass incumbents alike.  

Incidentally, those incumbents have suddenly decided that after thirty-five years of abuse, OPEC should be subject to our fair trade laws like any individual nation would be.  That way, since we have totally impeded our domestic production to make sure that we have absolutely nothing to back us up, OPEC can embargo us again into oblivion.  This transpires as the Middle East once again becomes a powder keg ready to blow, as one of our spy planes over-flies Venezuelan airspace and as we threaten the provider of 12% of our oil imports with sanctions for Chavez's alleged support of Colombian rebels.  Estimates of $200 per barrel are quickly becoming way too conservative.  Gold will soon be on its way to intergalactic space.

Any economic recovery based on local oil production would, however, follow an extremely painful period during which our trade deficits were gradually reduced and even reversed to surpluses, but during which all the inflation we exported to other nations, especially the OPEC nations, would come flooding back, leading to some very difficult adjustments.  However, by allowing the failure of the "financial engineering" fraudsters, both financial institutions and borrowers alike, we could avoid a considerable amount of the rampant inflation that we can otherwise look forward to on account of the planned government bailouts of losses caused by the real estate and other fraud engendered by the Fed and its member banks, as well as by Wall Street and its various investment banks and brokerage houses, not to mention rating agencies, appraisers, mortgage lenders, mortgage brokers and borrowers.  There are plenty of non-insider institutions who stayed clear of the fraud and who could absorb the fraudsters instead of the other way around.

With some adroit adjustments to our monetary policy (ala Paul Volcker), but using our own US Treasury Department instead of the Fed, as well as a total and complete termination of any and all laws and policies supporting free trade, globalization, off-shoring, outsourcing and illegal immigration, we could most likely survive this inflationary debacle and, in time, take back our manufacturing industry and reverse our status from being the world's largest debtor nation back to being the world's largest creditor nation.  A return to some kind of a gold standard, as well as the termination of the Federal Reserve System, would be a must for any recovery.  Moral hazard can and should be avoided at all costs.  If people don't trust the system, it will inevitably collapse.  This is happening right now before our very eyes.

If we had continued to tap our own oil reserves, as occurred during the 1970's and the 1980's, if we had rejected free trade and kept our manufacturing sector in house, and if we had returned back to a gold standard to support our dollar instead of using oil, our adventures in Iraq and Afghanistan, and our potential adventures in Lebanon, Syria, Iran and Kosovo, would be moot issues, and the three trillion dollars that the Second Iraq War alone will eventually cost could have been used to refurbish infrastructure at home, which is in a shambles, and would have created a slew of new employment to get the job done.  In addition, we would have had plenty of money to work on alternative sources of energy, instead of turning to the idiotic, moronic bio-fuel scam that is now causing food riots around the world by displacing other food crops with corn and reducing the amount of food available for export to countries which depend on those exports to feed their people.  The 911 debacle would have been totally unnecessary as an excuse for war and therefore would never have been planned by the Illuminati in the first place.

OPEC would have imploded from all the domestic competition and we would have had a true prosperity beyond our wildest imagination, not the make believe "prosperity" we have been forced to endure as "financial engineering" and bubble after asset bubble has been created to cover up the massive damage caused, by and large, by stupid and malevolent Fed monetary policies and by the implementation of free trade, globalization, off-shoring, outsourcing and illegal immigration.  The excesses could have been purged from the system.  Also, the resulting prosperity would have been shared by all, and would not be like the current brand of so-called "prosperity" that has made the rich much richer and the poor much poorer.  Our middle class would have expanded and become wealthier, pension plans would remain intact, wages would be growing along with production and spending on entitlements for US citizens as opposed to unnecessary illegal aliens would have greater support from a much more prosperous middle class.  Our trade surplus would have stayed a surplus, and our much stronger dollar, supported by much milder inflation, would have continued to retain its status as the world's reserve currency instead of being in grave danger of losing that status as it is today.  Stock markets would be soaring to new heights and bond markets would be stable.

The Illuminati could have become heroes.  Instead, their lust for greed, power and world dominance turned them into the worst brand of traitors.  They don't want to hear your praise; they want to bust your ass.  They don't want to see you prosper; they want to see you in abject slavery, while only they are allowed to prosper. Their trillions are not enough for them.  Their minds are perverted and warped beyond recognition.   They are no longer human, but have become some type of hybrid human-animal clones.  That must be why they support such things.

As just mentioned above, the Illuminati of course had other treasonous plans in mind, but as usual, they did not think things through to their ultimate conclusions.   They have allowed tiny countries like Venezuela and Iran, and large countries like Russia and China, who do not particularly like the Illuminists, to have monetary and energy trump cards which will largely negate Illuminist control over the manner, extent and timing of their destruction of western economies.  They have deliberately set up our current wars for profit in a manner that prevents our military forces from winning the war, miring them instead in an unwinnable guerilla war to ensure a continuing US military presence in perpetuity to protect the interests of big oil in the Iraqi oil fields and of the drug-running CIA in the Afghani poppy fields.  Hence the lack of sufficient manpower, the indescribably moronic rules of engagement, the lack of adequate equipment and protective gear, the supply of weapons and financial assistance to enemy soldiers, the creation of an Iraqi civil war, and so on, ad infinitum.  In the end, by deliberately sapping our strength, they will have greatly sapped their own strength, and their own evil plans will be turned against them, and will destroy them.

Their bungling Illuminist, neocon henchmen in the White House and in Congress alone are moronic and lunatic enough to completely destroy their plans, and perhaps the entire world in the process.  We are certain that higher level Illuminist strategists like Kissinger and Brzenzski have lost their appetites for many a lunch over the past seven years as they have watched their inimitable "Chaos" team in action.  

Just look at how the "financial engineering" turned out, and then ponder and consider the Iraq and Afghanistan debacles.  On these alone we can rest our case and can further assure you that these machinations did not turn out as planned.  The resulting financial and military destruction, as well as the political fallout, have been much worse than was planned and have been completely mistimed.  The power of the Illuminati has been greatly reduced by these ongoing debacles, which are going to get much worse in the very near future.  Their very lives are in the balance, although that has not yet dawned on some of them.  The plans of the Illuminati lay in a smoldering heap of ruins reminiscent of Dresden, Hiroshima and Nagasaki.

We ask the US public to consider all the above while the dollar continues its collapse on Wednesday to below 72 and while oil simultaneously tops $130 per barrel for the first time ever.  So much for any recovery of the US economy as consumers, which drive seventy percent of our economic activity, get blasted into oblivion, and as all the added costs for fuel drive inflation across the board to new and unheard of levels.  This transpires as our Bureau of Lying Statistics moves on to its next Paul Bunyan tale that April's core PPI (without food and energy), was actually higher than regular PPI (which includes food and energy), and would have us further believe that core PPI was only .4%, while regular PPI was an even more incredulous .2 %.  You just can't make this stuff up, but somehow the BLS has managed to do so anyway.  There must be a revolving door between the Fiction Writers Guild and the BLS.  Our government officials must think that we are oafish cretins.  They will do and say anything to downplay future inflation so they can avoid having to raise rates to combat what is, in reality, rampant inflation.  Bailing out their deceitful fellow pirates on Wall Street and preventing the destruction of the bond market is far more important than telling the truth.

On Tuesday, gold and silver went on the rampage once again while the Dow developed another case of yellow fever and swan-dove for a 200-point plunge to keep the liquidity drain going so the precious metals could be kept under pressure while oil skyrocketed.  A stronger yen is the culprit once again, helping the cartel cash in on 200 out of about 1,000 points of market-crashing power.  The weakening of the yen over the coarse of the day on Monday, and which was intended to boost the Dow past 13,000 again, also aided the gold and silver rally on Monday.  The cartel therefore had to shift gears and strengthen the yen to generate the 200-point crash.  Soaring oil and higher-than-expected core PPI were given as the excuse, like oil wasn't already soaring and inflation wasn't already running rampant.  The blather we get from the fane-stream media is nothing short of surreal.  Hope you specs have been buying protective derivatives at an ever-accelerating pace as the Dow crossed 13,000.  What a wonderful opportunity to de-leverage and plow the proceeds into gold.  After you finish eating the rally candy from the PPT and drive the stock markets down, you can then sell your various protective derivatives and plow the proceeds into gold again to keep the rally going.  We expect that if gold goes high enough, oil prices will be brought down, so be ready for that also.  Gold topped 920 on Tuesday as silver soared well above 17 on its way to threatening 18, probably due to short-covering, unstoppable oil and the need for both a safe-haven and hedge against inflation.  Gold is about to go head to head with treasury bonds in the competition for available liquidity as the stock markets explode and go down in flames.  Treasury bonds are going to lose.  How can they win with the USDX dipping just below 72, a rate of return below 4% and actual inflation running at 12.625% while the real GDP is at best minus 2.5%?  Do you really think traders will want to take an 11.125% haircut on their money?

In April, gold was at its current level while oil ranged from 110 to 120 and the USDX was around 72.  Now oil has hit 130, the USDX is back down to 72, and gold continues at the same level.  So what gives?  We'll tell you what gives.  Rampant manipulation by the cartel is what gives.  And we note that lease rates are starting to move down once again for gold and silver. 

The art of government propaganda goes back centuries. We can trace modern propaganda back to the 1930s.

As the years have past the brainwashing of the masses has become more sophisticated. After WWII legislation was passed that specifically forbade public money being spent for publicity or propaganda.

George and the neocons have broken those rules with impunity. They used radio host Armstrong Williams in 2005 and had a covey of retired military officers to carry the administration’s viewpoint on radio and TV.

We have seen tremendous use of governmental control over reporting regarding the wars and occupations in Afghanistan and Iraq. Everything had to be cleared via government. In effect everything was censored. If you went around the propaganda machine you were asked to leave, were thrown in jail as a spy or ended up murdered. The neocons embedded those who they could rely on to follow elitist dictates. The reporting of the war was all smoke and mirrors, but what more could we expect from our enemy our government.