All Roads Lead To Hyperinflation

Bob Chapman
The International Forecaster
September 18, 2008

CLICK ON THAT LIVE LINK ABOVE  ^ TO SEE WHAT HYPERINFLATION IS and what CAUSES IT.  It's when your money is worth nothing and food costs ten times what it used to. This was caused by the Losses and bankruptcies of the major banks (that we at Infowars.com predicted), trouble for the taxpayer who now shoulder a trillion in debt from bank failures, (Why do we have to bail out Wall Street fraud? Lehman Brothers should be left to expire.) We are watching our Zombie economy implode, Buy-outs are just throwing good money after bad, Toxic waste eats your equity capital, eats your stocks, your bonds, and eats your retirement funds. 1929 all over again And that will bring HYPERINFLATION. That's when your stocks don't even earn on a par with inflation. That's where food costs double every year. That's where your salary doesn't even reach to the cost of living. SEE WHAT IT LOOKS LIKE at THE PEOPLE'S HISTORY an amazingly engaging website. Surf to any year you want. Prices, wages, home cost. LOVE THAT SITE!

At the upper levels of Wall Street, all trading is done based on inside information about breaking news and about planned market manipulations.

The business end of Hanky Panky Paulson’s bazooka is glowing red hot as it continues to fire round after round of big money at the problem (HE SAYS!) but in reality it's just bucks into the hands of his old WALL STREET FRIENDS. His plan contains an up to 85 billion dollar, two-year bridge loan from the Fed to the world’s largest insurer, AIG, to be guaranteed by the US taxpayer via the US Treasury. And the company is in ASIA so go figure that one. The money's just going offshore!

Warrants convertible to up to 80% of the common stock of AIG will be pledged as collateral to secure the US Treasury’s loan guarantee to the Fed, with proceeds from the sale of AIG’s now virtually worthless assets being
supposedly used to pay down the loan. It’s just Bear Stearns mixed with Fannie and Freddie. You have a loan from the Fed guaranteed by the US Treasury being used to bail out AIG directly instead of being used to
facilitate the assassination of BS by a predatory lender (i.e. JP Morgan Chase), and you have what will be ultimate taxpayer ownership of AIG’s toxic waste by having common stock pledged as collateral instead of being
purchased through equity injections, as with Fannie and Freddie.

The Treasury’s potential 80% ownership greatly dilutes the value of the
existing common shareholders, and the Treasury has been given the right to
stop dividend payments on both common and preferred stock of AIG
shareholders, which means basically that they have both just been vaporized.
The Fed’s Fascist Follies continue.

You, the US taxpayer, will now not only end up owning nearly worthless stock
in these corporate cesspools, you have assumed all of their liabilities up
to the amount of the loans/capital injections. Remember, the bondholders are
still ahead of you!!! BS was $29 billion (plus), Fannie and Freddie are $300
billion just for openers, soon to grow into a loss in excess of one
trillion, perhaps even as much as two trillion or more, and now we pour
another 85 billion into the pot of boiling moral hazard for AIG. As we
inhale the radioactive fumes from the detonation of this latest round of DU
laced moral hazard, the stock markets and the dollar rally, while gold and
silver decline, all thanks to the manipulation of markets that are rigged
daily by the same scum who are bailing out the fraudsters. It is nothing
short of surreal.

Who do these cretins running our government, the Fed and Wall Street think
they are to presume that we, the taxpayers, want to bail out these rampaging
corporate fraud machines?! Who are they to saddle us with this debt when
they have already overspent us into a nearly 100 trillion dollar national
debt nightmare, after future costs of entitlement are factored in using GAPP
(generally accepted accounting principals). Haven’t they done enough damage
already? Let these morons fail before their malevolent fraud and
unprecedented and profligate financial imbecility cause the whole world
economy to implode and then collapse as if blasted by a Force 5 tornado.
This is a clear case of: “You can pay me now, or you can pay me (a whole lot
more) later.” Let’s take our medicine now before these inane, vapid,
Ponzi-scheming fraudsters send us into an even bigger debt-bubble oblivion
as they continue to pump out more toxic waste with their Fascist, Freddie,
Fannie, Fraud machine only to ask for even more bailouts! We ask, is any of
this even legal? Does it pass Constitutional muster? Unfortunately, and not
surprisingly, our cowardly Congress and President never say “no” to anything
the Illuminati ask for! Could it be because they are all on the same team?
We believe our subscribers know the answer to that question. Vote out all
incumbents, except for Ron Paul, in November.

As this transpires, Lehman Brothers has, somewhat surprisingly, been left to
expire in the financial dessert as the Illuminist vultures circle it,
waiting to pick its juiciest bones. Barclays has torn the first shred of
flesh and acquired its North American banking operations and investment
research and trading businesses, plus its Times Square headquarters and
other real estate, for $1.75 billion.

The Illuminists, through the nefarious, dirty dealings arranged by their
privately owned Fed, their corrupt Treasury and SEC bootlickers, and their
Wall Street cohorts, will now pick and choose who goes under and who stays
afloat, and will arrange for who will buy out whom, as they fashion their
next incarnation of our corporatist, fascist system. You just saw Bank of
America eat Merrill Lynch for 50 billion after turning down the offer to buy
out Lehman Brothers. This is the same bank that just bought a toxic waste
dump known as Countrywide in what can only be a described as a suicidal
move. Now, Bank of America goes bonzai for Merrill Lynch, yet another toxic
waste dump, as they tie on their red sun bandanas and get ready to go down
in a blaze of glory. What are these people thinking?! Are they that clueless
that they can’t see that all the assets in these companies are overvalued
and are not marked to market, and that there are likely to be huge mortgage
noteholder recourse and derivative counterparty liabilities? They should
have waited and bought Merrill Lynch for a song, or not bought it at all.
Perhaps their arms were twisted by the Illuminists. It is impossible to know
all the nefarious machinations that are happening out there as our zombie
economy implodes.

Watch all the options and short-sales frauds that will be running rampant as
these greedy Shylocks use all their inside information, fed to them by the
Fed and government officials in attendance at these clandestine meetings.
The Illuminati will now get to play financial gods, determining who lives
and who gets the axe, so why not use that inside information to your
advantage? At the upper levels of Wall Street, all trading is done based on
inside information about breaking news and about planned market
manipulations. The Illuminists control the secret meetings, the fane-stream
media and the manipulation of markets through the PPT. They have a monopoly
on inside information and market manipulation, and believe us when we tell
you, they use both of these monopolies to rape, pillage and burn anyone that
is not in their fascist, Marxist club. They especially like to slaughter and
devour the morons who use black boxes for investment, who they eat for
breakfast every morning as the markets open. Look at what just happened to
gold and silver specs on the COMEX over these past two months. We rest our
case.

Note how, in all the above bailout situations, the shareholders get
vaporized, and the bondholders get saved. This is in keeping with what we
told you about the bond markets, namely, that they are the seat of
Illuminist power. The small investors, the municipalities, the regional
banks and the pension plans who invested heavily in the stocks of these
failing companies get vaporized, while the bond-holding Wall Street
fraudsters, the transnational Illuminist conglomerates and the thieving,
currency-manipulating nations which took undue advantage of the elitists’
free trade, globalist agenda, or which gouged us with monopolistic pricing
of oil and other essential commodities, get a bailout, courtesy of their
victims. It is like a mugger who steals your money, gambles it away, and
then asks you to make good on his losses. Even the mafia doesn’t go that
far!

The message is now quite clear. The sucker-dupe, equity-injection scheme,
where big players like sovereign wealth funds are lured into rescuing
fraudsters by providing capital under circumstances that are deceitfully
made to look like tempting bargains, is now at an end. Forget about equity
injections. Rescuing these toxic waste sewer holes, which we call
“fraudsters”, is the surest way to blow your money out your derriere. Talk
about throwing good money after bad! The big players have had their fill of
this fraud and will now be content to stand aside, take flight and circle
like the vultures they are, waiting to pick the bones of the walking dead,
zombie companies who have been poisoned by the toxic waste derivatives that
have been spread around the globe by the Illuminist fraudsters in the US.

The problem, which the fraudsters now face, is not a problem with liquidity,
but with equity capital. When you borrow money, you have the borrowed money
as an asset, but then you have an equal, off-setting liability. You get your
equity capital either through accumulated profits, or by the sale of
equitable securities like common or preferred stock. Sufficient equity
capital must be maintained, or your company becomes non-compliant with stock
exchange rules, or with government regulations, and usually this triggers
defaults on your debts as well, and the market loses all confidence in your
ability to stay in business. So basically, without sufficient equity
capital, also known as net worth, your company is toast. Losses, as from
toxic waste, eat directly into your equity capital, and you must either sell
assets and liquidate debts to meet your mandatory debt to equity ratios or
you go under and file for bankruptcy. In the present case, the Fed is
flooding the system with liquidity, but the bank’s can’t make any profits by
use of fractional reserve banking leverage because they are afraid to lend
money, which is what they are supposed to be doing for a living. They are
afraid to lend money because everyone is lying about their assets, and they
won’t even lend to one another much less to companies outside the banking
system. Without profits, there can be no new equity added to your balance
sheets unless you get an equity injection from the sale of stock issues. But
now, because all the bailouts have vaporized shareholders, no one is in the
mood to buy the stocks of companies suffering from toxic waste problems,
especially companies like AIG that are heavily into counterparty liability
on credit default swaps, which are costing them billions every quarter.

Because of these problems with equity capital, the Illuminati have taken a
two-pronged approach. The vipers of fraud, greed and speculation have run
amok among many financial institutions around the world, flashing their
toxic waste derivative fangs dripping with toxic waste poison, inflicting
many bites, and injecting their toxic waste poison into the wounds. The
central banks have cut an “X” into the wounds, and are attempting to suck
the poison back out. They have two main suction cups.

First, the Fed and other central banks around the world are acting as a
clearing house for toxic waste. The Fed, for instance, has just extended
their term securities lending facility by allowing their 20 or so primary
dealers, flagship Illuminist companies all, to exchange any of their
investment grade (BBB or better) securities for treasury paper, where before
they were only allowing AAA paper (even if the rating was false), and these
auctions are going to weekly instead of bi-weekly intervals, so as to make
sure the exchange of treasuries for toxic waste is readily available and
that no one important to the system is left hanging. This gives the Fed a
lot of power, because anyone who gets out of line does not get his loan of
treasury paper renewed. You play their game, or you get taken out. The Fed
is acting as a parking lot for toxic waste vehicles so that the fraudsters
do not have to show the garbage on their balance sheets, showing treasury
paper instead. That way, they are not forced into the fire-sale of
derivatives to shore up their tanking equity capital positions as their
mortgage related derivatives go into meltdown. Such fire-sales could bring
the whole system down by forcing other suffering institutions to mark their
toxic waste derivatives to market, instead of marking them to model. The
elitists have taken a huge chance by allowing Lehman Brothers to fail.
Fire-sale bankruptcy liquidations do not good derivative prices make, and
bankruptcy is bound to set off some large holdings of credit default swaps,
and who knows where that could lead. We suspect that this may be one of the
most protracted bankruptcies in legal history for that very reason - to
delay the liquidation of Lehman’s toxic waste. We further suspect that
Lehman will be bought up piece by piece in sales approved by the bankruptcy
court but not made public (i.e. a gag order will be placed on the terms of
sale).

Second, the Fed is transferring liability for losses to the sheople
taxpayers, by conspiring with the usual Illuminist players to design
bailouts dripping with moral hazard. For instance, trillions in toxic waste
have just been transferred to the Treasury by virtue of its authorization
and consent to inject equity in exchange for preferred stock. They will just
keep creating money out of nothing to keep buying preferred stock in order
to provide the funds to make the bondholders whole, whether the bondholders
are those who have loaned money to Fannie and Freddie directly, or are those
who own mortgages or mortgage derivatives made or guaranteed by Fannie and
Freddie. The limits will be raised as high as necessary, and already $1.3
trillion has been authorized by raising the national debt ceiling in
anticipation of the problems to come. Since the Fed now holds a bunch of
AAA-rated GSE toxic waste that it has exchanged for treasuries, in a very
real sense, the Fannie and Freddie bailout is, in an extremely substantial
way, a bailout of the privately owned Federal Reserve Bank itself, which we
predicted would eventually end up eating the toxic waste to save the system.

Further, because the sheople have just guaranteed all this GSE paper, which
previously carried a high risk of default due to the poor financial
condition of Fannie and Freddie, the paper no longer carries such a high
risk of default and will now retain substantially more of its value, thereby
saving large financial institutions throughout the world from having to mark
these assets down to account for the former elevated risk, and thus
obviating the need for fire-sales of these assets to reduce debt and
maintain equity capital levels, which would have led to a mark to market
disaster for the big players. This is also why the Fed has now opened itself
up to absorb anything BBB or above, because all the GSE paper it holds has
been guaranteed by the sheople. And remember, those dollar bills you hold
are not backed by gold anymore, but are now backed by the Fed’s general
collateral, which was diminishing rapidly as it took in the toxic waste
through it term securities lending facility. The GSE bailout thus helped to
preserve a large portion of the Fed’s general collateral, and this may in
part account for the dollar’s rally when the GSE bailout was announced. This
is of course ridiculous, because what they hold is nothing but “worthless
paper,” but that is not yet the perception of investors. Otherwise, they
would be storming the gold and silver pits. The Fed may now in fact return
the GSE paper it holds back to its original owner, because it is no longer
perceived to be at great risk, and the Fed’s treasury paper will be returned
to the Fed, where it can be used to absorb other, more troublesome, toxic
waste. The same reasoning was used to have the taxpayers save AIG, because
this prevented the fire-sale of derivatives that would have been forced by a
bankruptcy, and prevented a meltdown in the credit default swaps issued by
AIG and the bonds these swaps insured, had AIG gone under. It is all about
preventing mark-downs and fire-sales.

Many banks, investment banks, mortgage companies and insurance companies
like Fannie, Freddie, Bear Stearns, Merrill Lynch, Lehman Brothers and AIG
are totally insolvent and nothing can help them stay afloat, save a bailout
forced down the throats of the hapless sheople taxpayers either directly or
via a buyout planned by the Illuminists and funded most likely with
guaranteed financing, courtesy of the sheople. Those companies that are
allowed to fail, like Lehman Brothers, will be picked clean by various
predatory Illuminist interests for pennies on the dollar just as we have
described in previous issues of the IF. Wait until a thousand banks go
under. The Illuminati will have a field day. Meanwhile, as tanking stocks,
bonds and derivatives take down banks and pension plans, the sheople will
get to eat the depositor losses and the losses suffered by participants in
under-funded pension plans through the almost broke FDIC and PBGC. These
losses will also run in the trillions of dollars.

The Illuminists are setting up a feeding frenzy for the sovereign wealth
funds of other nations, who will no longer provide equity injections as
discussed above. That is why the FTC has discontinued publishing statistics
regarding foreign investment in US assets. Such investments are about to
explode and the many treasuries out there are going to come home to roost,
stoking inflation to unbelievable levels. Those unlucky institutions that
are allowed to fail will be fed to the hungry piranha, so they can dump
their dollar surpluses in a more gradual fashion. The Illuminati were
threatened with a catastrophic dollar meltdown via a flood of sales of
treasury paper, and they had to turn to the OPEC nations, especially Saudi
Arabia, to force oil prices down, and to sell euros for dollars, and get the
dollar to rally. The dollar rally has taken pressure off exporting nations
like Russia, China, Japan and Europe by making their exports more
competitive with US consumers, and will enable them to buy more tangible
property here in the US before ever-accelerating hyperinflation erodes, and
eventually destroys, the purchasing power of their US dollar forex reserves.
Such reserves were accumulated through trade surpluses made possible by
illegal currency manipulations that gave these nations unfair trade
advantages against their US competitors, and this, coupled with free trade
and globalization that did away with trade tariffs, has devastated our
domestic businesses, especially our manufacturing sector. Obviously, the
Dickster had to go to Saudi Arabia to do some arm-twisting to “git ‘er
done.” We are certain the Saudis did not relish lower oil prices or the
inflation that a stronger dollar would impose through their dollar pegs, but
in the end, self-preservation won out. The Saudis undoubtedly also assisted
with the gold and silver market manipulations that have taken precious
metals to bargain basement levels, thus providing those who missed the
previous rallies with a new, and very favorable, entry point.

As you can see, all roads lead to hyperinflation, after which comes the
crack-up-boom, followed by the biggest depression in US history. If you do
not own gold and silver, you will be vaporized. We can assure you that the
Illuminati themselves are now scarping up gold and silver like it was going
out of style, adding more bullion to their already gargantuan hoards. This
is there failsafe asset, being hard bullion instead of fiat paper, and it
may serve to back a new regional currency, and later a world currency, to be
issued by private banks free of government regulation and interference,
meaning the banks will be able to do as they please. What you may be
witnessing here is half of The Big Sting Two. They can’t get the stock, bond
and derivative markets to rally substantially because of de-leveraging and
dreadful news. So the next best thing is to drive precious metals and other
commodities as low as they can take them so they can make the most of the
proceeds of their sale of dollar-denominated paper assets behind the backs
of the US public using dark pools of liquidity known as Project Turquoise
and Baikal. The meltdown has begun. It is 1929 all over again.

from www.infowars.com posted by Anita Sands Hernandez astrology at earthlink net home of the 15$ natal reading.

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