Bob Chapman
Last January we predicted that there would be another stimulus program this year. Congress has already passed legislation to continue unemployment benefits, which the Senate will approve as well. Those out of work cannot survive without such assistance, as our transnational conglomerates continue to send our jobs to foreign lands. The question is will the unemployed, as a result, receive benefits indefinitely, as these elitist corporations park their profits in tax havens tax-free?
There is nothing to stop these events because the public doesn’t understand what is going on and Congress answers only to campaign contributions and the call of re-election. The biggest insult is to expect Americans to believe unemployment is 10% under U3, never bothering to mention U6, which is 17.3% and climbing. Of course there will be more stimulus and Fed monetization of Treasury debt. They know if it is not forthcoming the economic and financial system will collapse. Can you imagine what would happen to the mortgage securities market if the Fed stops buying that toxic waste, or if Fannie Mae, Freddie Mac, Ginny Mae and th FHA stop buying subprime and ALT-A type mortgages? The stock market has slowly moved higher as the insiders in the market, who know what is going on, perceive what is in store for 2010. As far as the Fed is concerned they have to continue doing what they have been doing. The purchase of Treasuries, Agencies and toxic waste has to continue as we long ago pointed out. There isn’t enough dollars floating around the world to absorb this debt. That is why the Fed has to continue to create money out of thin air. They may have cut back on M3, but the money spigot hasn’t been turned off and won’t be eliminated. All this money freed up by Fed purchases of Agencies and toxic waste allows banks, Wall Street, insurance companies and corporate America to buy Treasuries to keep the scam going, as Mr. Ponzi said. Incidentally, when my mother grew up she lived across the street from Mr. Ponzi.
We forecast this two years ago while most economists were sleeping. This past year the Fed bought 80% of new government debt or $1.2 trillion worth as foreigners bought only $300 billion worth. To think this program will end is pure folly. There will be no one to buy the debt, which grows larger with each minute. Deficits will run more than $1.5 trillion a year as far as the eye can see. Revenues continue to fall and spending to rise. Foreigners are dumping dollars not accumulating them. Worse yet many other nations have similar problems. They have to raise money as well. Who will accommodate them? We are talking $10 trillion alone for the G20 countries, some of which are on the edge of bankruptcy. Then again where will the money come from to bail out the likes of California, New York, New Jersey, Florida, Nevada, Arizona, etc.? There just isn’t enough money to go around. The Fed has to increase printing money and issuing credit; there is no other choice short of economic collapse. The price to be paid for this Keynesian profligacy is hyperinflation and you can be sure it is already in the money pipeline.
Lifeboat, 19:55, if you have nursery tales at the highest intellectual level,
you’d never believe anything from lower officials. No integrity in China! Not that the West can claim much moral high ground after Climategate and the WHO swine flu data manipulations.
Israeli @ 17:27 DIABOLIC BASTARDS..You were right, I coudnt stop watching till the end
If anybody thinks these videos are about autism and murcury, they will be shocked by what is revealed. For me a lot of loose ends were connected. I urge all to watch and promuligate these videos. To me they were more revealing than freedom to fascism.
Hi Lifeboat, I saw that as an article too.
One bit that worried me slightly was that it was built to be a coal town (of 1m people! - big mine). Australia wouldn’t have 1m of the population living off coal, and it is one of our major exports to China. Oz will suffer big time when China stops.
In the same vein more on China
Betraying Confucius: Academic fraud in China
By Kent Ewing
HONG KONG - It is one of the great ironies of China’s rise on the international stage: a nation that reveres Confucius and the devotion to truth and learning symbolized by the great sage has become one of the world’s leading perpetrators of academic fraud. Cheating among Chinese scholars has reached such epidemic proportions that at least one leading academic journal will no longer consider their submissions.
Read more at..
Ferret
G’day mate…
Good stuff on China, I agree 100%. But there’s more. Not only are the growth numbers bullshit, but even the reality is nuts. A few days ago we were watching a video on an new instant city for 1 million, completely empty because no-one wanted to live there. A second video of another city showed huge attractive office blocks, completely empty. These and many other edifices are real, not bullshit numbers, but they are still absolute madness. The trouble with madness stories is that they have unhappy endings. I suspect that China’s date with unhappy endings may not be far off.
In the meanwhile I think we agree that they are wise to accumulate gold, and very wise to talk it down at the same time. Further, the day may not be far off when they release the shackle on the Renminbi, which will make gold cheaper for them.
LP
You know better…I was calling them[cabal] clowns…..I would never give you guys a shot like that….Margaret was kidding…
By the way …do you wish to put your name in consideration for Girls Belizian Beach Volleyball Referee?
illusion @ 17:35 pm
I’ll bet you feel better now. 
Let’s make a deal ok? Let’s not ever be sheep.
Hourly Action In Gold From Trader Dan
Posted: Jan 20 2010 By: Dan Norcini
Dear CIGAs,
Click chart to enlarge today’s hourly action in Gold in PDF format with commentary from Trader Dan Norcini.
kb 17:17, the Chinese will do what is best for them.
If that involves encouraging the populace to buy gold, while talking it down on the international scene while they frantically convert their US$ into something tangible (Al, Cu, Ni, Fe, Au etc., African infrastructure, oil companies, Australian REE companies), then so be it.
ispo - that WW11 vet is correct, but I’d go further…
“I look at the airport bullshit as a training ground to turn Americans into docile sheep in a totalitarian state”.
It’s not just the US - it’s everywhere !! All over the world people accept it as being ‘for their own good’. I’m with the old-timer…. total BS !! Drives me mad as I spend so much time in airports, and so impotent to do anything (unless one wants to miss the flight). The security career seems to attract a disproportionately large number of A-holes whose job it seems to be to make life miserable for travellers. Not all are like that I’m pleased to acknowledge, but the blind acceptance that allows it’s continuation and expansion is maddening.
Now that’s off my chest I’ll get back to work : - )
Mercury and autism. For those who doubt it.
This is long, but broken into 10 minute segments. It’s worth it to just watch one segment, but be forewarned that you’ll most likely get drawn in to watch more.
Dr David Ayoub lecture re: the causal role of mercury in autism - Part 1:
http://www.youtube.com/watch?v=QpF9CRApAOo
Ferret I agree with that
glad to see someone agree.
I don’t buy those numbers even a little. They make no sense.
I’d bet that the demand and supply situation in gold is so much worse than people will ever admit. But I will the say that China and the US are in cahoots perpetrating a scam in paper. I do not believe China is a friend of gold at this point.
ferret @ 16:41 pm
Maybe - Maybe not!
He helped write it -so he wanted every control and item in it - and would pass it IF he had the 60 votes. And, if they can flip Olympia Snowe, Senator from Maine, they will still try to pass it ‘as is’ and as fast as they can. JMO
The only reason he will scale anything back is because he and the rest of the Dems know if they don’t pass something NOW - it will be another 10/20 years before they get another shot at taking over 1/6th of the economy. Of course, most of the Dems are running scared right now - they saw what happened last night - and they are NEXT on the list if they try to cram this bill thru with some dirty trick. Fall back position is, ‘we listened to the American people and we are going to do this at a smaller and slower pace in order to focus on creating jobs for the American people and reducing the budget deficit’.
WAG THE DOG! 
ferret @ 16:54 pm
I was reading earlier today and the article was saying that housing prices in China were up 24% this year. I know that the gov figures are not real credible but if the real number is anywhere near that then they’re headed for the big blow up.
floridagold @ 16:52 pm
If they try to take away our tasty salted snacks… that’s when the revolution will start!
Oh by the way… “chicharones”…. Bleccchhh! 
Curley Larry & Moe need to be charged under the RICO Act,The fourth guy is just a bit player,but he could be included.
Charged for theft ,Conspiracy,and crimes against the American People.
First they should be denied the use of their stolen money to defend themselves .
Then I suggest a Chinese Judge,a Christian Prosecutor,and a Black Public Defender in order to minimize chances of Bribery and charges of unfair treatment.
Madoffs Judge would be a good choice or perhaps Fed Judge Andrew Napolitano as an alternate.
Obama could win a second term if he could accomplish this !
AGoldhamster @ 16:05 pm
You look kinda familiar…
Estas en su casa.
China again.
Wen Walks ‘Tightrope’ as Overheating Threatens China
Just read some of the figures (or all of them!). Industrial production up 19.6%. Nothing exceptional, for China, it was the best since June 2007, they have been reporting double digit increases for years. They are just not credible.
Irish - don’t bring any back
$1000 fine for bringing Pork Skins across the border
Buying a bag of chicharrones in Mexico and bringing them into the United States could cost buyers up to a $1,000 dollars in fines.
Authorities told Action 4 News that new federal regulations regarding the importation of the cooked pork skins go into effect on Thursday.
The regulations are designed to target exotic animal disease and impact chicharrones made by street vendors or purchased in stores across the border in Tamaulipas, Coahuila and Nuevo Leon.
The U.S. Department of Agriculture is requiring cooked pork skins from those states and others to be accompanied by a certificate issued by the Mexican government.
Ok, I know this is going way out on a limb but
what happened last night was a 10 on the Richter scale.
Bernanke is up for re-appointment.
Could Obama win back the populist vote by dismissing Bernanke?
fg, Brown’s win is a godsend for Obama.
An excuse to dump an horrendously expensive, complicated and unpopular piece of legislation, or at least have it diluted beyond recognition.
Far out Irish
Yesterday you called us Southern Hemisphereites clowns, look what you turkeys accomplished last ‘night’
how nice of him
Obama urges pared-back health care bill
20 minutes ago
(AP:WASHINGTON) Chastened by the Democratic Senate loss in Massachusetts, President Barack Obama and congressional allies signaled Wednesday they will try to scale back his sweeping health care overhaul in an effort to at least keep parts of it alive.
A simpler, less ambitious bill emerged as an alternative only hours after the loss of the party's crucial 60th Senate seat forced the Democrats to slow their all-out drive to pass Obama's signature legislation and reconsider all options.
No decisions have been made, lawmakers said, but they laid out a new approach that could still include these provisions: limiting the ability of insurance companies to deny coverage to people with medical problems, allowing young adults to stay on their parents' policies, helping small businesses and low-income people pay premiums and changing Medicare to encourage payment for quality care instead of sheer volume of services.
Obama urged lawmakers not to try to jam a bill through, but scale the proposal down to what he called "those elements of the package that people agree on."
"We know that we need insurance reform, that the health insurance companies are taking advantage of people," the president said in an interview with ABC News. "We know that we have to have some form of cost containment because if we don't then our budgets are going to blow up. And we know that small businesses are going to need help."
Another option, which called for the House to try to quickly pass the Senate version of the broader bill _ bypassing the Senate problem created by the loss of the Massachusetts seat to Republican Scott Brown _ appeared to be losing favor.
"That's a bitter pill for the House to swallow," said the No. 2 Senate Democrat, Dick Durbin of Illinois.