Barack Romulus Augustulus Obama claims that his Administration will end the budget deficits by the end of his first, and hopefully last, term in office. Our peerless leader's projections are based on an average GDP of 2.6%, while Congress disagrees, using an average GDP of 2.2%, in their budget forecasts for what will be the next wildly excruciating four years. Would these be the projections for the US Economy, or are they for Never, Never Land, or for the rabbit hole in Alice in Wonderland? Perhaps Tinker Bell can sprinkle some fairy dust on our economy to make these phantasms come true. What kind of utterly preposterous poppycock will the Illuminati come up with next? It appears that the Puppet Masters, their Wall Street henchmen and their US government flunkies have now added crack-smoking to their usual Satanic rituals and occult New Age meditations as they fire up the Goldilocks Matrix for another round.
Watch now, as the various players in the Obama Administration, on loan from the old Clinton Administration, bob around on their marionette strings as they put on their next play where we all live happily ever after, while all around us reality sets in, and that reality is not a pretty picture. Based on rampant real rates of inflation, as opposed to bogus official rates, declining tax revenues and decreasing or stagnant economic activity and consumer spending, as well as on the future onslaught of stimulus package after stimulus package to stop this stagnation and decline from happening, these budget deficits will increase substantially, not decrease.
Their tall tale of declining budget deficits is giving Paul Bunyan a run for his money. The opening volley of one to two trillion in budget deficits for this year is the tip of the proverbial iceberg. As this transpires the losses suffered by Illuminist financial institutions will continue to be funneled to the Fed in exchange for monetized treasury bonds so the too-big-to-fail Fed can request a bailout later that you, your children and your grandchildren will get to pay for after being wiped out by hyperinflation caused by previous bailouts and stimulus packages. After they have impoverished you with hyper-stagflation to save themselves and their criminal institutions, the Illuminati will then tax you to death to pay for the mountain of deficits created by Emperor Romulus Augustulus, who now bosses our business leaders around like the Marxist dictator he really is, to fund all the gargantuan stimulus packages that will have provided little or no stimulation as the Much, Much Greater Depression marches on. Then come the forced labor camps to help depopulate the growing tent cities as the Illuminati attempt to finalize their plans for a corporatist, fascist Big Brother police state. Buy gold, or get reamed.
Just to show you how ridiculous their budgetary GDP assumptions are, as you know from our last issue, we have predicted that Real GDP, which is GDP after adjustments for inflation, or should we say hyperinflation, will be minus 6.3 percent, or even worse, for the first and second quarters of 2009. Then due to the totally outrageous "flash in the pan" stimulus packages, we see Real GDP improving slightly to minus 3 to 4 percent over the last half of 2009, with a flat Real GDP for the first three quarters of 2010. After that, we drop off into oblivion as money-bomb bailouts and stimulus packages become ever less effective while the Real GDP eventually plunges to minus 10 percent or worse. The Fed and our corrupt politicians will then be found desperately pushing on a string while hyper-stagflation takes us into the diseased bowels of the Much, Much Greater Depression.
Apparently, our bogus, so-called representatives, during their budget calculations, conveniently forgot to use the GDP deflator, or based it on the fairytale PPI and CPI figures being produced by the Bureau of Lying (Labor) Statistics. Perhaps they even forgot to consider the consequences that would result when trillions of dollars are pumped into an economy that is producing fewer and fewer goods, and the consumers of which are spending ever less money, namely, hyper-stagflation. Yes, we are being sarcastic. They did not forget the deflator, they don't believe the figures produced by the BLS and they understand perfectly the impact, which the inane bailouts, failing production and tanking consumer spending will have on our economy. They know all these things, yet they are intentionally misleading you as instructed by their Puppet Masters, who have either bought them off or compromised them. Our Congress and Presidential Administration have become fiction writers and tellers of tall tales to deceive you into thinking they have things under control. They want you to believe that the stock market has just bottomed, and that we will only have a recession, with recovery close at hand, while the dollar rebounds and the bond market is saved, even as they pump trillions of dollars into our economy via monetization of treasury bonds. If you believe so much as a single word emanating from corrupt Wall Street shills and government officials, then you are just plain dumb.
Long-term U-6 unemployment has now reached the 20% level, and is going to get much worse, so what do you think that will do to tax revenues, production, consumer spending, corporate profits and GDP? Do you think that our President and Congress figured on 20% to 35% unemployment for the four-year period of their budget projections? Not a chance.
How will the Fed put the brakes on inflation as its balance sheet grows to be five trillion dollars or perhaps much more, when that five trillion dollars represents par value on toxic waste derivatives worth only 10 to 30 cents on the dollar, which will have flooded the Fed's balance sheet as they are taken from bankster-gangsters and GSE bondholders around the world in exchange for the treasury bonds which the Fed is purchasing to support the treasury market and to suppress gold. How do you bleed out five trillion dollars from the economy by selling toxic assets worth perhaps a trillion dollars? Let us assure you: IT WON'T WORK!
Note that M3 was pumped up at an average rate of 14% worldwide, thus baking double-digit inflation into the cake on a global basis. Yes, US M3 has risen recently from the 12% range to around 18% while inflation has tapered down from 14% to about 9%, but that is due to the deflationary loss of wealth and the crippling and withholding of credit by US Illuminist banks that have parked their cash with the Fed at interest instead of lending it out. At some point, that will have to change and re-inflation will have to occur, or the system will collapse, and the Illuminati cannot allow that to happen until they have bailed out of their dollar-denominated paper assets via the Big Sting Two, a process which is currently ongoing. We already see the Illuminists tooling up for a re-inflation of the real estate market as previously reported, and we believe the banks are waiting for a signal from the Fed to lend out their money again, mostly to each other because such loans are insured by the FDIC, probably at a time intended to reinforce the impact of the stimulus packages and the re-inflation of the real estate market. Rest assured that you won't see these relatively lower rates of inflation for the vast majority of the four years of Romulus's budget projections when this re-inflation occurs. The Fed will lack assets of sufficient value to drain money from the system to put the brakes on what will be runaway inflation. As well, continued massive treasury monetizations will remain necessary as foreigners shun US bonds and as the Illuminists and their henchmen get ever more desperate for cash to keep the system going as long as possible so they can continue to milk it for all it is worth.
The five trillion or more dollars that will be monetized by the Fed does not even count the multiple trillions in credit that is being extended via the other Fed credit facilities that are now being created on what seems to be a weekly basis. In order to stop the resulting hyperinflation from the ever-growing deluge of money and credit sloshing around in the system, what will they do, pull the plug on their credit facilities, collapse our economy and take us into a deflationary depression? Absolutely, and that is in fact their diabolical plan. They are just waiting for an advantageous exit point, probably after they have completed the re-inflation of our re-animated zombie economy so they can finish bailing out of paper assets via the Big Sting Two. And if they don't intentionally pull the plug, it will be pulled for them by the resulting, and quite inevitable, hyper-stagflation and double digit interest rates that will throw us into what would be a multi-decade depression were it not for their planned adventure into WWIII.
Risk re-evaluation will occur as the stimulus packages, in ever-increasing amounts, peter out with little effect and the government tries to keep pushing on a string. All the new money sloshing around in our economy as treasury bonds continue to be monetized at an ever-increasing rate because we can't pawn them off on foreign nations any more will create an unstoppable inflationary juggernaut. That means a race into double digit interest rates as were experienced during the early 1980's, and that in turn means the destruction of the real estate, bond and interest rate swap markets, which will eventually account for tens of trillions in losses for already insolvent Illuminist and non-Illuminist zombie financial institutions around the world. That also means a race to the exits for all foreign and domestic holders of what will be increasingly-debauched, dollar-denominated paper assets, including treasury bonds, which will then add an even greater amount of cash to the already flooded system. When that happens, gold and silver will go inter-dimensional! If you think things are bad now, you haven't seen anything yet! Gold and silver are your only refuge from the evil machinations of the Illuminati, and when deflation finally hits, gold bullion and coins will be the sole survivor of available safe-havens.
Apparently the elitists are now not only trying to save the so-called "legacy banks," they are also trying to save the privately owned Fed in their bid to create a market for toxic assets. That is because the Fed, via its Term Securities Lending Facility, which it has now extended from the original primary dealers to Illuminist institutions around the world, has volunteered to become a toxic waste super-site. And unless the Illuminists can inflate the value of the Fed's toxic waste assets, the Fed will not only be bankrupt, it will be unable to drain enough money out of the system by selling its toxic assets as it attempts to put the brakes on the inflation it knows it is causing with all the monetizations. If the Treasury Department allows the Fed to monetize more bonds via a taxpayer bailout of the bankrupt Fed because its assets are insufficient to drain money from the system to stop hyperinflation, such a move would only exacerbate the inflationary pressures and be self-defeating.