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April 5th, 2012 
FAKE NEWS for the Zionist agenda
How
do you create your own monsters? Over the past month the US and Europe
have been telling us they will agree to release oil reserves into the
market to drive down prices. What are they waiting for? It is expected
there could be serious supply disruption, but yet no action.
Incidentally, in all the media we see no admission or comment that those
nations’ actions were responsible for oil prices at $107.00 a barrel. ~ Bob Chapman
Over
the past month China and India have been avoiding oil sanctions by
agreeing to trade for local currencies commodities and consumer goods.
The trend continues, but leaves Iran with a shortage of currencies. In
addition Iran is helping Syria by supplying an oil tanker. That oil is
shipped directly to China.
Appointed
Greek PM Papademos informed Europe late last week that a third bailout
cannot be excluded. Just as we predicted. There will be no end to these
subsidies. The idea is to keep bleeding Greece forever.
This
past Friday European governments called for a bigger financial
emergency fund, extra engineering a firewall to fight the regions debt
crisis. The firewall commitment is $1.1 trillion, and of that $320
billion has be set aside to fund the ESM due July 1st.
If
you remember more then several months ago we told you it would take $4
to $6 trillion to bail out Italy and Spain. These firewall funds are
supposed to protect the sovereign debt of some six countries, and $1.3
trillion cannot accomplish that. They’ll need at least four times that
amount.
As you can see, the entire program is deceitful and these
subsidies, if allowed to, will continue for years with Northern European
taxpayers footing the bill for these subsidies. They believe eventually
Europe will never be able to tear away from the grip of world
government.
Those of you who have been paying attention are witnessing
the demonstrations, violence and arrests in Spain and it appears it is
escalating. Cutting the budget by 1/3 under the circumstances is stupid.
That is a fall in the public debt from 8.5% to 5.3% of GDP.
In
Greece, the Greeks know they cannot nor do they want to, meet the terms
of their financial agreements. On April 29th an election is due and
that has caused a splintering of the vote, which pollsters believe only
gives the two major parties some 35% of the total vote.
This means
political instability and perhaps social and political chaos not seen in
Sprain since the 1930s. This is what happens when people are without
hope in any country.
During May and June chaos will reign and the
austerity-bailout deals will have to be canceled plunging Greece into
default, something that should have been done three years ago, and all
of this could in part been avoided.
In
the Greek election that many never happen on April 29th, or maybe May
6th or perhaps May 13 Pasok and the Democracy Parties, as we pointed out
before, may only get 35% of the vote together and if they do not win
there will be no parties to pledge support to cutting more public
spending of 5.5% of GDP.
That means no bailout in a fractionalized
government. Those kinds of cuts will flatten the economy totally. Greek
debt is still more than 100% of GDP, or $440 billion.
It
only took three months and Spanish PM Rajoy is losing support as
millions of Spaniards demonstrate in the streets. The voters in
Andalusia failed to give him a majority, as well. Already Rajoy is in
trouble.
Avoidance
of a Greek election is only going to make things worse. As it stands
now Greece is going to end up in chaos and if that happens Spain and
others may follow, upsetting all of Europe.
This
past week’s results of EU member meetings may have set the stage for
bailout, but it will be interesting to see if the funds are found to
accomplish their ends. Many professionals are not convinced that all
will go well in Greece, or for that matter in Ireland, Portugal, Italy
and Spain.
Many believe they are facing a global government finance
bubble. Let’s face it; the risks are massive, because all governments
and the financial sectors have all taken the route of expansive money
and credit that will all end in bubbles.
Like
all the creations of the last few years’ currency swaps by the Fed,
commonly known as illegal loans, to the European Central Bank is just
another form of welfare that they know will only try to work in the
short run.
A virtually free service provided by the banks that control
everything. It is all risk free of course, because bankers supposedly
know what they are doing. That is how they put us in the position we are
in the first place.
These loans, created out of thin air do not create
economic goods and services or a recovery, especially who 800 banks
refuse to lend any of the funds out to business to increase business and
employment. Mind you this is virtually free money – like financial
welfare.
In
another orgy of free money the Fed tells us that it bought 61% of US
Treasuries issued in 2011, and as we said in an earlier issue that
program, Operation Twist, was a disaster. Again, the Fed was undermined
by its own so-called allies. This exercise, just like the year before,
has just barely kept the economy alive.
If
House bill (HR-4180) by Rep. Kevin Brady (R-TX) makes it out of
committee it would strip the Fed of half of its dual mandate. It would
no longer have to provide full employment they would only have to insure
price stability.
Like the efforts of Ron Paul over countless years, who
expect billions of dollars will be passed out in bribes and nothing
will happen. The only way to recapture the system is to bring it down.
The
Fed oblivious of history pours money and credit here, there and
everywhere, keeping many currencies from failing and supposedly giving
them viability. If needed more money is extended with a hope someday it
will be repaid and, of course, it won’t be.
The extension of debt
central banks believe can go on forever, and needless to say, that is
ridiculous. Something you probably missed in the Copenhagen meetings was
that there was a proviso to supposedly increase competition within
rating agencies by forcing rotation and to draw in European agencies.
This was a move to have less rerating encounters, so as to deceive the
public.
Money
is readily available to banks and to an extent to major corporations,
which in turn have used part of those funds in western stock markets
sending them close to new highs. Most economies are sputtering at best
and investors ask how can this be?
Well, that is why markets are up in
spite of lack of participation and volume. That means there is a limited
market to sell into. The buyers are not there, so the banks have to sit
on the shares. 70% of the volume is algo trades that last 8
nanoseconds. That adds no liquidity to the markets. There is no longer a
retail to dump the shares on.
Now
that the G-20 has decided how much money will be donated to the EFSF
and the ESM, they now want $500 billion more from the IMF, 19% of which
is paid for by US taxpayers. The bulk of those additional funds are to
come from emerging market economies.
The BRICS have said that they will
not participate without an increase in their voting power.
Bob Chapman – April 4, 2012 – posted at GlobalResearch.ca
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