Bob Chapman: Expect The Recession To Increase In Severity

From: The International Forecaster, November 8 2008

The dichotomy between paper and metals, US owes 3 trillion to foreigners, the wiemarization is coming, more banks go belly-up, gold manipulation poses problems for economic stability, consider the recent rallies to be as good as it will get

We have reported extensively on the dichotomy between the physical and paper markets in precious metals. The pricing between these two types of markets is now completely out of sync, with the casinos, which some dare to call commodity markets, utilizing bogus manipulated prices based on paper sales of precious metals in volumes that do not physically exist, while the physical markets have become a de facto black market where the true value of gold and silver is recognized based on market fundamentals. This market split has resulted from an intentional bottleneck created by preventing wholesale gold and silver from being converted into retail gold and silver. This has been accomplished by withholding wholesale gold and silver in COMEX inventories under thinly veiled threats against anyone attempting to take physical delivery, while channeling existing wholesale supplies at the smelter and dealership levels to the large bullion banks that are using these wholesale supplies to suppress precious metal prices and to bolster their short positions. …

The retail premiums and shortages are a de facto gold confiscation, since few in America, Canada or Europe own physical gold and silver anymore, and are thus defenseless against the coming hyperinflation. The Illuminati want the public to remain defenseless, and making the retail purchase of gold and silver as onerous as possible is intended to accomplish just that. They do not want the public to be prepared for the hyper-stagflation which is on its way as the soon-to-be-many-trillions in bailout money hits the dollar supply depot via monetization of treasuries and as commercial banks attempt to re-inflate our financial markets by starting to lend again, mainly to Illuminist insiders, in their effort to complete the last stage of the Big Sting Two. The commercial banks can now lend to one another risk free because the FDIC is now guaranteeing all interbank loans, with any losses to be borne by the sheople taxpayers.

They have already pounded commodities into the ground. Now all they need to do is to orchestrate one or two huge bear market rallies so they can bail out through their dark pools of liquidity, and use their sales proceeds to buy commodities and other real, tangible assets at suppressed, bargain-basement prices, or at bankruptcy liquidation prices as non-Illuminist companies are allowed to go under because bailout money is intentionally withheld from them by Vizier Paulson, or by the person who will be his successor, to whom Congress has given god-like powers with bogus oversight by Buck-Busting Ben. Obama will look like a hero when the bear market rallies occurs, and the fane-stream media shills will proclaim his genius. That will last for six to twelve months until we are Weimarized as everyone bolts for the exits in anticipation of the dollar destruction to come via hyperinflation caused by the huge increase in the circulation of money that will occur as greed and speculation get one last hurrah in the general stock markets. …

The Illuminati are getting the best of both worlds. They are getting dollar support and a high demand for treasuries from the de-leveraging of foreign assets, while simultaneously creating higher prices on treasury bonds than should be possible under the current circumstances by creating an artificial market shortage in treasuries which should, by rights, be flooding the markets via the primary dealers. These market distortions, in the long run, are untenable, and eventually the dam will break, the dollar will go into the tank, and gold and silver will fly.

We now have a new dollar anti-gravity machine. You may recall that much of the AIG and Lehman CDS fallout is in the private, opaque, unregulated OTC market. This fallout is in the magnitude of hundreds of billions of dollars, which losses must be settled in dollars. Yet we hear that there was no problem, and that the derivative masters must have known their stuff and done their homework all along. This is, of course, an impossible result. The losses don’t just disappear. What may have happened here is that, because these instruments are private contracts that are not publicly traded, the parties are free to alter the terms of these contracts by mutual agreement. With some strong-arming by Vizier Paulson, they may have deferred settlement of these derivatives in stages, or on demand. …

The end of the year rally in the stock market is over. This is as good as it gets. The steam will slowly go out of prices and early in the new year we’ll test 7,268 on the Dow. … Wall Streets fairy tale rally ended Tuesday, November 4th….

The coming depression is going to be terrible. The US owes foreigners over $3 trillion, has over $10 trillion in short-term debt and over $100 trillion in long-term debt. We need $3 billion a day from foreigners just to stay afloat. We cannot compete with foreign countries without re-erecting trade barriers on goods and services. Our educational system has not trained younger Americans and half of them cannot compete. It sure doesn’t look good. …

Another short recommendation IBM is $34 billion in debt. …

We talk about gold and silver being the only financial salvation of our age. It is and will continue to be because America and most of the countries are broke and there is no way they can recover. They are buried in debt and will try desperately to bail themselves out via inflation, which they know will not work. Eventually the bottom will fall out and they know it. That is why they have to have another war, a major one. They desperately need another distraction. That creates the opportunity for profit, people control, a draft, population destruction, avoidance of revolution and the repudiation of debt due to this terrible war that, of course, our enemies started. This allows as well for a further grab for power – the Nazification of our country. …

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