"The End Of The Great Bailouts Is Approaching" by Bob Chapman "The International Forecaster" 6-23-10

http://www.theinternationalforecaster.com/International_Forecaster_Weekly/The_End_of_The_Great_Bailouts_is_Approaching
Broke central banks, UK must monetize or collapse, 20 major countries on the edge of insolvency, No way but down for the Stock markets, defaulting on bailout payments, Fed audit going through Senate, shrinkage of high-end properties, VAT coming.

The devastating results of Keynesianism didn’t take hold of the western world until after WWII. Cycles were created for the accumulation of wealth. A boom occurs and you get wealthy from investments on the way up and even wealthier on the way down, because the elitists are controlling the supply of money and credit and interest rates. That is the real underlying mission of the Fed, which is owned by banking and Wall Street. All the power to control markets and create inflation and deflation lies with the Federal Reserve. Politicians do not create monetary policy, the Fed does. The politicians do as they are told. They know from time to time there will be economic pain, but the payoffs are so good they learn to live with it.

This time the damage is so bad that the Fed has been forced to monetize trillions of dollars of debt. The disease this time has spread to Europe with the ECB, using, quantitative easing by simply creating money out of thin air. That is something they said they would never do. The only real liquidity in Europe is emanating from the ECB and the Fed. We believe that eventually countries will fail, as Iceland has. You know all the possible victims. There are presently 20 of them including the US and UK. Three-card Monte games do not last forever. If liquidity is that scarce then where is the money coming from? The only place it could be coming from is the Fed. Not only is a $2 trillion bailout in process, but also as banks and thrift institutions fail stress tests some will be bailed out by being absorbed by other supposedly solvent institutions. When that option is gone then governments must bail them out. When the monetization hits the entire system collapses. After 50 or more years in this business we believe the system is definitely going to fold.

All the central banks involved are broke or virtually broke. If they are not broke why is their condition a big secret? The Bundesbank told Spain last week that we do not want stress test results made public. The reason obviously was because of the sad condition German banks are in and their penchant again to keep everything secret. These are the same people who want a one-world currency in the form of an SDR, which is worthless, because it has no backing. It is just another fiat currency. They all are in such bad shape they cannot even sterilize their interventions. The new trillions we see in the system in Europe and the US cannot be sterilized. CLICK HERE to keep reading this article

Bob Chapman "The International Forecaster" on the John Stadtmiller Show with Robby Noel

Budget director is leaving this summer, they might replace him with Laura Tyson. Congressional Budget office is saying 100 trillion in projected deficits.

Depression might last 10 or 20 years according to Bob if they raise taxes. The proverbial "Canary in the Coalmine" is California. When they fall, the rest will follow. In other states Billions might come out of pension funds.

Bob maintains that we still have a 1 1/2 years out yet. Obama is making mistakes that could backfire. Bob makes some other interesting observations. Arizona might move to not issue birth certificates to "anchor babies" (babies of illegal aliens).

Caller asks whats new with the E.U....Chapman says that Greece is getting closer to leaving the Euro and going back to the Drachma. What recourse do the German people have? There is tremendous dissent there especially with the increase of taxes there.

Half the Gulf is covered in oil and that is just what is visible. John mentions again about the methane gas and says the Gulf is dead. Bob wonders if the Gulf 'spill' will travel around the world...and calls it a false flag operation.

CLICK HERE for Mr. Robert Chapman bio also known as The International Forecaster.