The Fed The Ultimate Zombie

http://theinternationalforecaster.com/International_Forecaster_Weekly/The_Fed_The_Ultimate_Zombie

Bob Chapman’s
The International Forecaster
The Fed The Ultimate Zombie
June 24 2009
International Forecaster Weekly | Link to this article | Return to Web View

Summary: Mistakes of and good intentions of Lincoln and Kennedy, As the Fed absorbs the toxic waste of its friends, it becomes a zombie bank in its own right, the perils of printing the dollar, the deliberate march to the destruction of the dollar,

This idea of a non-bank currency issued directly by a government free of any interest burden is along the lines of what Presidents Lincoln and Kennedy did, and tried to do, respectively, for the US. Their boldness in promoting the welfare of US citizens cost them their lives. They did not want to become interest slaves to a private national bank, and chose to issue our own official currency directly from our Treasury Department free of the interest burden imposed by a privately owned, debt-based, European-style fractional reserve banking system, which is what our Founding Fathers fought a war to free themselves, and their posterity, from.

Note that Baron Rothschild started and bankrolled the War of 1812 when the first private US central bank charter was not renewed by our then gutsy Congress, which, unlike our current corrupt and cowardly Congress, saw through the ruse of the British crown, which was attempting to take back its colonies via monetary extortion. Lincoln made the mistake of not backing US notes with gold and silver as required by our Constitution, an error that was confirmed as being a mistake by the Supreme Court of the United States, and the US notes that were used to fund the Civil War efforts of the North soon became worthless, triggering a long, hard, devastating depression in the 1870's. President Kennedy was assassinated before Executive Order 11110 could be implemented, and the Fed was allowed to continue on with its blatant criminality.

You might also note that Presidents Garfield and McKinley were both ardently opposed to the idea of a private central bank, and we know what happened to them. Andrew Jackson, who the Illuminists tried to assassinate on multiple occasions, was our most vehement objector to a private central bank, and his face now appears on the front of a twenty dollar bill. If he was alive today, he would throw a "hissy fit" the likes of which has never been recorded in human history. This is the way the Illuminists chose to rub Jackson's face in their final victory to establish a private central bank with the passing of the Federal Reserve Act in 1913, albeit their insult was delivered posthumously. In addition, President Lincoln's face is on the front of a five dollar bill, which is yet another posthumous insult to the leader who rejected the European Illuminists and their private banking interests. Next we'll see President Kennedy's face on the front of a thousand dollar bill, which will be created so that you don't need a wheelbarrow to cart around the cash necessary to pay the ridiculously high prices of goods and services that will be caused by the coming hyperinflation. On second thought, let's not give them any more ideas!

So, in the case of the Federal Reserve Note (which is a private note backed by the full faith and credit of the US government, and not a US note issued directly from the US Treasury), do these two ingredients for the creation of hyperinflation exist? Currency speculators we always have, but are the Fed and our Treasury Department corrupt enough to keep printing the dollar so speculators can short it into oblivion by creating a dollar carry trade? Is the Pope a Catholic? Does a bear crap in the woods? So the answer to that question is: Abso-freaking-lutely!!!

But the Illuminists had a problem. They could not print money, thus creating an interest-bearing debt for the US government, without the consent of the US Treasury, which was in turn limited as to how much it could borrow by the US Congress. So how on earth could they get the Treasury and Congress to spend a totally unprecedented amount money by borrowing it at interest from the Fed, which then creates it out of thin air, such that hyperinflation, and the destruction of the US economy to pave the way for world government, is accomplished as the desired and ultimate end? The politics of such a move would be horrendous unless justified by an extremely compelling reason.

Naturally, they would have to start their sting operation by buying off or compromising the Executive Branch and its various Departments, especially the Treasury Department, as well as the Legislative Branch, the Judicial Branch, and most of the relevant regulatory agencies, which they had very nearly accomplished already in any case when they put their plans for a hyperinflationary recession, followed by a deflationary depression, into motion. And remember, the ultimate aim of this sting operation is to take down the US economy, along with the economies of Canada and most of Western Europe, to pave the way for world government, which they will attempt to put into place in the ensuing chaos.

So what is an Illuminist with a compelling desire for hyperinflation to do? We'll tell you what they did.

They started by having the Fed create profligate amounts of money and credit well beyond the amounts necessary to absorb any increases in production, thus creating an elevated level of inflation for almost two decades. They continuously lied officially about the rate of inflation by understating it. This was done to cover up their destruction of our economy via free trade and globalization by creating bogus increases in production that were just inflation in disguise. This inflation was implemented to get us started down the road to economic destruction from which a hyperinflationary environment could be created.

To take us out of recession, and prevent the purging which our economy needed from the destruction wreaked in the early 1990's in the aftermath of the Savings and Loan Crisis and the collapse of the real estate market, both of which they also created, they pushed tech stocks into a dot.com bubble, followed by a real estate bubble to cover up the dot.com destruction, which real estate was then re-bubbled after 9/11 via ultra-low interest rates and their if-you-can-fog-a-mirror-you-can-have-a-mortgage-loan policy. This was done to keep the debt snowball rolling, and to prevent the purging of losses from fraud and speculation out of our economy by keeping those losses in the system so they could later become the reason for future defaults, losses and bailouts that would help lead us into hyperinflation when the Illuminati were ready.

They engineered the 9/11 false flag attack to take US citizens, via fraudulent intelligence, into a multi-trillion dollar, two-front war in Iraq and Afghanistan to get the big spending sprees started. These were wars for profit intended to enrich Illuminists while simultaneously bankrupting America and pushing us down the road to hyperinflation.

They bankrupted the Social Security system by stealing from its reserves to pay for Illuminist pork projects and benefits for illegal immigrants (slave labor), drove up medical and pharmaceutical costs, and created an entitlement indebtedness in the tens of trillions of dollars that they know can never be repaid, thus ensuring the destruction of the dollar by curtailing the ability of the US to repay its creditors, and providing a backdrop for huge bailouts and expenditures to keep paying out benefits and to fund medical insurance reforms that can only be paid for through debt monetizations that will propel us toward hyperinflation.

They got rid of the Glass, Steagall Act via the Gramm, Leach, Bliley Act so they could defraud investors with new flimflam financial products in the complete absence of any checks and balances. They deregulated the already opaque OTC derivative market with the Commodity Futures Modernization Act so that derivatives could be issued naked (without collateral backing the guarantees against default) to back securities that in many cases were not even owned by the buyers of derivatives backing those securities (credit default swaps), and further allowed investors to gamble on interest rates (interest rate swaps), thus turning the entire OTC derivatives market into a gambling casino. They continued to foster mortgage and other consumer loan fraud, via liar loans, false appraisals, slack credit standards, false derivative ratings and fraudulent derivative sales, using Fannie, Freddie and the unregulated OTC derivative market to accomplish their dirty work until a Quadrillion Dollar Derivative Death Star was created. All of this fraud was allowed in order to plant and build a fatal flaw into the entire debt system, and this flaw would be used to ignite the Derivative Death Star, and start the bankster-gangster bailouts that will eventually run into the tens of trillions of dollars unless stopped by US citizens. How's that for spending us into hyperinflation!

They also allowed investment banks to use 40 or even as much as 60 to 1 leverage to fund the Derivative Death Star, and allowed commercial banks to reduce their reserve requirements to unprecedented levels. They increased money and credit to psychopathic levels to feed the hedge funds, pensions funds, endowment funds, and sovereign wealth funds, which then went berserk on a wild spending binge, thus driving stock and bond prices up to ludicrous levels, which have now imploded or are in the process of imploding, thus giving more cause for bailouts and profligate borrowing and spending by our government at taxpayer expense, once again socializing losses after profits have been privatized.

By exposing the fatal flaw just alluded to that was built into the debt system via rampant fraud, they created an implosion of financial markets by showing how vulnerable, flawed and over-rated derivatives really were (in this case, the exposure of the fatal flaw may have happened sooner than planned by an untoward event, thus throwing a wrench into the works), and set up the 19 anointed financial institutions, and the Fed, as too-big-to-fail institutions, and made sure that no Illuminist companies were allowed to fail. Instead of allowing failure through bankruptcies to purge the economy, they bailed out Illuminist banks and corporations in typical crony capitalist fashion at taxpayer expense, thus socializing losses after profits had been grandly earned and privatized, using the oh-we-can't-let-this-happen routine and the fear of increased unemployment and horrendous amounts of asset losses, which will of course occur anyway further down the road, but this time on steroids. Needless to say, non-anointed companies can go suck an egg.

They hid the losses of Illuminist-anointed financial institutions via false accounting which was approved by "regulators," and caused the BLS and other government agencies to lie about every known economic statistic, in order to convince taxpayers and private investors that there are Green Shoots and that they should once again invest in these zombie institutions which later will implode, thus rendering the stock worthless. In the meanwhile, they allowed non-Illuminist companies to fail, thus reducing their competition and consolidating their power. They then had their government flunkies create fascistic, socialized spending programs, and termed the first of what will be many such programs as an "economic stimulus," when in reality these are all going to be nothing more than flash-in-the-pan, pork-laden masterpieces of profligate spending that stimulate nothing, create few if any permanent jobs, and virtually ignore the middle class, which got a token tax break - big deal. As the economy unravels, they will just keep up the same oh-we-can't-let-this-happen routine, and continue to play on taxpayer fears while they totally ignore the Constitution which in no way authorizes these bailouts of private companies on a secret, crony-capitalist basis, which bailouts are also being extended to foreign banks and corporations stung by the Illuminist derivative fraud (hence the lack of lawsuits). In this fashion, they will continue to spend and spend as the PBGC and FDIC go bankrupt while our middle class is wiped out. This spending will have to monetized. Hyperinflation is the inevitable outcome.

They have also created Public Private Investment Partnerships so Illuminist institutions can buy their toxic waste from each other in what will be a failed attempt to prop up toxic derivative prices, with the public being the big loser because they will absorb most of the losses while most of the profits, if any, will go to Illuminist investors. This is just another method of converting private red ink into public red ink, thus adding to the debt blob that will debauch the dollar and help send us into hyperinflation.

The Fed will continue to absorb the toxic waste of its member banks, setting itself up as the ultimate too-big-to-fail zombie financial institution which is now helpless to stop the oncoming hyperinflationary freight train because all its assets are unmarketable cess pools of toxic waste that no one in their right mind would purchase for more the 10 cents on the dollar. Thus, the Fed has been intentionally disabled from fighting against the inflationary consequences that will result from the rampant spending and bailouts that are now ongoing right before your eyes. The Fed has been hamstrung so that hyperinflation can be assured. They can no longer suck money out of the system because the value of their assets is laughable.

After they achieve an elevated level of inflation by all this spending on pork, bailouts and socialist programs while the hamstrung Fed continues to profligately spew out money and credit at an ever-increasing rate via monetization of treasuries which investors are starting to shun more and more for obvious reasons, interest rates will rise, the real estate, stock and bond markets will collapse, credit default and interest rate swaps will implode, and suddenly there will be tens of trillions in losses that of course will have to be bailed out.

As this debacle transpires, everyone owning dollar-denominated assets will be running for the exits, all the dollars parked in foreign currency reserves will be repatriated, and the currency speculators will go to town as the Fed pumps out money in ever-increasing quantities to fund bailout after totally illegal and disgusting bailout. This will mark the start of the period during which the Much Greater Depression will be at its most severe level, and is where will we be Weimarized. You won't know about the foreign investment until it is too late because, conveniently, like the cessation of M3 statistics by the Fed, the FTC no longer provides figures regarding foreign investment in the US.

During this whole process, only the Illuminist institutions and corporations will receive any bailouts, so in the end, all the money for which taxpayers and their descendents become indebted will have been paid as salaries and bonuses to the Illuminati and their henchmen, and as free booty to their Illuminist business corporations to keep them from failing and to resettle them overseas. Taxpayers will be lucky if they get a lump of coal in their stockings as they watch their pensions, benefits and entitlements trickle down to nothing, especially after hyperinflation becomes full blown. Note how the losses are allowed to be trickled out as slowly as possible so that taxpayers are less prone to say that the losses are just too big to handle and that the elitist institutions must be allowed to fail and let the chips fall where they may as the market sorts things out.