International Forecaster Weekly

More Than Ever We Live In A Very Political World

More than ever we live in a very political world...

Bob Chapman | April 15, 2004

More than ever we live in a very political world. There are terrorist’s bombings, assassinations, lying politicians and massive market manipulation in almost all markets. Behind it all though is finance and economics. There has never been violence or war that was not economically motivated. Today the source and motivator is free trade and globalization. The only winners in globalization are transnational conglomerates. We among others are left with the asset bubbles that made their profits possible. Furthermore, globalization is a form of redistribution of wealth. US wages, jobs and employment opportunities vanish and the third world moves up a peg or two. The asset bubble collapses have to be hidden from the public or camouflaged and that is done by planning and executing wars. As we travel the road to economic failure, the engine of money and credit to the US has to be underwritten by high-saving foreign countries, particularly Asian countries. This is a lose-lose situation for the US because their industrial base has almost been totally destroyed, wages have fallen; we have 14% unemployment and 8% inflation. In the absence of trade barriers, the US economy is doomed. That means that within the next five years during competitive deterioration our country will face social and political dislocation. Empty stomachs cause revolution. Each day the political, financial and economic situation weakens. From an economic standpoint our debt, which grows each day, is terminal. Presently, we have both monetary and commodity inflation. We have a government that is totally incapable of telling the truth. Without national barriers, we cannot compete. We either set up those barriers or we see our standard of living drop by 50%. We are being sold out by our elitist leadership, which has an agenda totally different from ours. As the bubbles in stocks, bonds and real estate break and as wars expand the value of assets will fall. That means your only real shelter will be in the only real money, gold and silver assets.

In her testimony, Condi Rice said, “We never expected a missile to be fired at the Pentagon.” Let’s see if they delete it from the transcript.

James K. Glassman of the Washington Post attacked CBS MarketWatch columnist, Paul B. Farrell. Farrell’s sin was he predicted a market crash this year coinciding with a domestic terrorist attack, probably during some high-profile political event like the Fourth of July, one of the political conventions or the Presidential elections. It happens that Mr. Glassman is a fellow at the American Enterprise Institute, which is a leading advocate for big business policies and has been referred to as one of the leading architects of the Bush administration’s foreign policy. Glassman is the meathead that authored “Dow 36,000”, which had the embarrassing misfortune of being published at the top of the market in 1999. Glassman is an optimism bias cheerleader that misleads investors’ decision-making and was responsible for many being buried at the top and ultimately losing 70% of their investments. He is a master of disinformation that exaggerates the positive when it doesn’t exist. When the market hit 7,236, he was still calling for 36,000. His personal attack on Paul Farrell for daring to connect the dots and raise the possibility of domestic terrorist attacks is a symptom of his bias. We can assure Mr. Farrel that if he doesn’t toe the elitist line he will have the regulatory authorities and Washington all over him. They do not allow dissent. They will certainly attempt to destroy him.