-- Posted Sunday, 23 October 2011
The following are some snippets from the most recent issue of the International Forecaster. For the full 29 page issue, please see subscription information below.
US MARKETS
After three years banks are still working on a mortgage plan as 22.5% of existing mortgages remain underwater. Banks are sitting on $700 billion of home equity loans and seconds at original values, not market value. This refusal needless to say totally distorts their balance sheets.
This is not illegal, but it certainly distorts their balance sheets. Such a situation means they really are insolvent and those holding such loans will either go bankrupt or be reorganized by the government, which is nationalization that means citizens get to pay the bank’s losses. By these assets not being forced to mark-to-market, credit continues to expand worsening the situation. Thus, banks live on government and Federal Reserve life support and that condition can only lead to another episode of crisis, which most certainly is in progress. Even Europe has been bailed out to the tune of trillions of dollars created out of thin air by the Fed.
At last official count it was $16.1 trillion, plus whatever else they are secretly hiding on or off the books. This Ponzi scheme has been in operation for three years, and has to be continued because if it is not the entire world financial system collapses. The Greek crisis is the visual specter of the world financial crisis, far, far more lies under the surface in almost every country. The value of and pricing of bonds, particularly sovereign bonds, has been totally distorted by central bank interference and manipulation. There is no reality in bond markets anymore and when they come crashing down it will be a sight to behold. Let this be a word to the wise. It has been almost 300 year since the financial collapse of 1720 in England and France and this episode today has all the trappings of a replay. We always try to look at both sides of each of these historical events to see if they were caused deliberately and if today’s events are a replay. In almost all instances we believe events were the result of deliberate intervention to bring the system down and today’s problems are no different. On the face of it why would we allow the same players who brought the system down to resurrect it? It does not make any sense. Why should the people be responsible for the bankers and politician’s machinations? They should not be, and therein lies the rub. These players are once again going for total control of the financial and economic system, so that they can control all of the people, so that they can implement their centuries old dream of world government and the subjugation of mankind. Rumors run rife throughout Europe of a plan to repair and solve their financial crisis. All are bogus, designed to keep stock and bond markets from collapsing. The propaganda and misdirection engendered in these rumors are professionally designed to control the show so to speak. What you are watching and are subject to is psychological warfare to make you believe that everything will be all right when in fact the crisis is deepening. There is no way out for Europe nor for the entire financial system and that is the way it has been planned.
Investors have to be conditioned to expect the situation to be extended in search of a solution – a solution unbeknownst to the public that is deliberately unattainable.
In the US there is another secret plan in the works to give the Treasury the ability to borrow an additional $900 billion that would, of course, come from the Fed. Then there is the enabling Super Congress, which bypasses Congress that is attempting to cut $1.5 trillion from future spending over the next ten years, at the same time the President’s efforts to spend $447 billion for jobs is shot down in the Senate.
The two-year recession supposedly almost ended 2-1/2 years ago. That is the official position - ask the permanently unemployed who’s job has been shipped to China, whether the so-called recession is over? Since June of 2009 median household income has fallen by 6.7%. That is some recovery, as unemployment rose to 22.6%. Those who lost jobs and found new ones made 17.5% less in income. Those out of work remained jobless from 16.6 to 24.1 weeks. This year that number was 40.5 weeks, the lowest in 60 years. In addition the real median self-employed income has fallen 12.9%. That condition is prevalent worldwide.
Whether governments and their handlers like it or not since February 2009 the US has been in an inflationary depression, which is worsening every day, with no end in sight.
We see the business networks dragging up anyone they can find to convince us that a recovery is in motion; any dissenting voice is never heard from again. The system is not working and no one wants to admit to it.
The players do not know any other system, so they do not want to abandon the one that they have. You cannot maintain the system by creating more unpayable debt. The system that is currently functioning can’t continue to do so indefinitely... read more>>
