International Forecaster Weekly

A Reward Of The Top Job At The World Bank For The Eminiently Unqualified Paul Wolfowitcz.

A reward of the top job at the World Bank for the eminiently unqualified Paul Wolfowitcz, it's either terrifying or a sick joke... The death of manufacturing in America... no sense in getting a college degree anymore... from debtors to slaves... preemptive strikes as a defence policy... dollar losses and the end of the empire... no more Mr Nice guy!

Bob Chapman | March 26, 2005

The World Bank and the IMF are subsidiaries of the US government and have been since their inception. The Bush administration choice of Paul Wolfowitz to run the World Bank has to be a reward for ineptitude. Wolfowitz was a strong voice in the WMD episode that brought us to invade Iraq. Of course, we all now know that no such things existed and that Mr. Wolfowitz’s howlings were pure lies. He was deeply involved in the reconstruction of Iraq, which has been a disaster. Wolfowitz could not run anything; he is an ideologue. He along with other elitists thought we would move him to Iraq, take over the oil wells and privatize them. They would be sold to US oil interests for $0.05 on the dollar. That did not work because the Iraqi people, who they had liberated, disagreed and an insurgency began, which has cost American families more than 4,000 dead and 30,000 wounded. Paul Wolfowitz was a chief planner in this fiasco, which was all about stealing the Iraqis oil. Elections, freedom and democracy came later. The oil fields were never privatized and the war continues.

If Mr. Wolfowitz, as head of the World Bank, presents the same unworkable policies he put into motion in Iraq he will be confronted with great skepticism. What other response could you expect, this is the man who contends there still were WMD’s in Iraq. The appointment of Wolfowitz turns the World Bank into an ugly American bank. The world will see the bank as another extension of failed American policies and the extension financially of Pax Americana.

Wolfowitz's track record at the Defense Department was a disaster accompanied by an epidemic of waste fraud and corruption. Maybe the neocons just want him out of the way, because he has become too much of a burden. Thus, they have awarded him a patronage plum; a reward to a loyal Sherpa, as these megalomaniacs like to call themselves. Then again, Bush is just dumb enough to make such an appointment. Maybe he is paying back his critics. You know how vindictive he and his crew are. Diseased minds do some very strange things.

Our President tells us Paul Wolfowitz is a man of compassion who believes deeply in uplifting the world's poor. Another flagrantly stupid statement. There is absolutely no evidence to support this assertion. Wolfowitz will be a management disaster just as he and his boss Donald Rumsfeld were at the Department of Defense. They do not listen to anyone except themselves. This is a clique of arrogance and ideologues who are totally blind to their own mistakes and under such people our Defense Department is a disaster and we are losing billions of dollars every year. Even in Iraq, the CAP lost $9 billion. It, of course, was stolen. For this feat CFR elitist Paul Bremer was awarded the Medal of Freedom. What a sick joke. He should have been awarded for waste, fraud and corruption something the elitists are masters at.

There is no question, even omitting his failures; Wolfowitz is eminently unqualified for his job. Foreigners have come to the same conclusion and believe Wolfowitz will turn the World Bank into a direct subsidiary of the US government and no longer make loans, just simply give money away to those who follow the US’s imperial line of empire. The bank under Wolfowitz would visually become another pawn in America’s global dominance.

The French tempered their opinions by recognizing the appointment as a proposal. Other governments are preparing for talks on the matter thus; the appointment is not open and shut. Government officials were diplomatic in their comments. Outside of government, comments were harsh. In Der Spiegel (Mirror in English) the headline read: “Wolfowitz, Nein Danke (no thanks).” In Europe, Wolfowitz is considered a unilateralist hawk and Europeans are outraged. It is absolutely the wrong decision. The continent is not pleased. Making matters more difficult is that the nomination follows that of John Bolton, an unspoken critic of the UN, an institution Europe would like to see strengthened. Some in Europe even called the nomination of Wolfie truly terrifying.

Wolfowitz’s appointment is part of spring-cleaning but it is also means the World Bank would be shaped to ensure that the US domestic and business interests will be served as well as that of free trade and globalization. The pursuit of so called free market liberalization and deregulation will be accelerated.

What we are witnessing is an intercine fight among elitists as to the direction toward world government. Europe’s view is slow and methodical. The US advocates want to speed up the process. We believe underlying all this is a fear and skeptism by Europe’s Black Nobility that the American elitists may go it alone, bypass the world government and impose an American world empire. Make no mistake, this appointment is very important for George and the neocons.

America is fast becoming a nation that does not manufacture. If you do not manufacture how can we maintain a technological lead? It is obvious we cannot. We are also outsourcing technology jobs. There has been a loss of 221,000 jobs in six major engineering job classifications. When you do not manufacture, you do not need engineers. What you need you outsource or bring in cut-rate H-1B&L-1 workers. Original proprietary design and core intellectual property are being done in Asia. Due to this outsourcing, R&D budgets are being scaled back. The outcome is a brand name with a sales force selling foreign designed, engineered and manufactured goods, which ultimately Americans will not be able to afford, because most will be without jobs. The jobs will have been sent to another country.

As we stated in an earlier issue: What is the sense in getting a college degree, the cost of which is at least $150,000, that you have to pay off for the rest of your life, when you cannot get a job. 373,000 discouraged college graduates dropped out of the labor force in February. That is not very encouraging.

Doesn’t anyone get it out there? We are ripping the heart out of our country. You cannot compete against slave wages. We are being forced down to the level of the third world. Our economy is disappearing as our trade deficit explodes and all Americans can think of is to speculate in real estate. Foreigners hold trillions of our dollars. It is only a matter of time before we start to get those dollars back. That will be followed by a further fall in the dollar, which will eventually end up losing its status as the world’s reserve currency.

The elitist government in America is deliberately destroying our country and all we get from Congress is a new bankruptcy law that turns debtors into indentured slaves.

We are convinced the Fed is buying Treasury offerings out of Caribbean tax haven banks, which is nothing but a Ponzi scheme that has to end in hyperinflation and failure. When situations like this arise, you can be assured that there will be another war or some kind of national emergency.

Wal-Mart will pay an $11 million fine for using illegal alien slave labor. Wal-Mart did not admit it was guilty. It paid the fine because it knew the government needs the money for its wars.

We have a new National Defense Strategy. We will preemptively strike any nation (rogue nation) that disagrees with us. Washington calls it active deterrence. They will solve regional problems in their infancy, but invading and destroying any seeds of disagreement. In the present case, strategy is being formed with the assistance of Britain.

GM will cut 28% from its 38,000 “US” white collar workers, or 10,640 will lose their jobs. As we predicted, this will happen for years to come as production is moved to China and the third world, destroying the industrial economies of Michigan, Ohio, Indiana, Ontario, and Quebec. These will be targeted reductions; nevertheless jobs will be gone forever. This year GM’s earnings will fall 75% to 85% and their $100 billion in bonds are in junk status. This is the beginning of the end for the US car and truck industry. Nobody seems to get it. Our country is being destroyed. Are we the only ones with the guts to write about it? Yes, we are a lone voice among a populace that is too dumb to understand what is being done to them.

The US has just coerced Guatemala, its latest victim, into repealing an important law to lower the price of pharmaceuticals and promote generic competition. All of the CAFTA countries are already members of the WTO, which requires countries to adopt US-style patent systems, featuring 20-year patent protections of all products, including pharmaceuticals. The bottom line is compulsory licensing, and requiring CAFTA members to establish special monopoly protections for pharmaceutical regulatory data. The US imposed provision would establish a five to ten year period during which generic firms could not rely on the brand name companies’ tests. As a result, brand name companies would get protected monopolies even if a product were not a patent. As a result of Pharma and US government pressure, Guatemala capitulated.

We hear that AIG has 500 people in its Connecticut office working on derivatives. GM is the owner of Ditrich, which writes home loans. Wait until defaults start to build on GMAC loans and Ditrich credit lines. GM will head for the sewer. Be short GM. Like the carnage that was World War I, the current Iraq War could spell, at least for some time, the plague that is free trade and globalization. Like today, that period was marked by imperial overstretch, great-power rivalry, unstable alliances, rogue regimes and terrorist organizations. The world is following the same path today and is not better prepared for the calamity now than they were then.

During WWI, global markets were disrupted and disconnected first by economic warfare, then by post war protectionism. Throughout the world warfare continued, China in civil war and then foreign invasion by Japan and, of course, the Russian revolution. Germany had hyperinflation and depression. The problem that brought about WWII was sealed at Versailles. The reparations visited upon the German people by the allies were impossible to meet. They were deliberately designed to bring about another war. International bankers and elitists financed both sides in WWII, just as they had countless times since the 12th century financing both sides of every war for profit and power. War is an elitist racket. CFR types point to rising tariffs and the restructure of migration as the course of deglobalization, when in fact it was elitist wars and a financial system they decimated, as they have today. The rise then and now of revolutionary terrorists organizations were planned and financed by elitists to create chaos. These episodes have always been followed by deglobalization. This time may be the exception. It all depends on how things work out. They will not pull the last plug and go for world government unless they believe they have a good chance of success. All these events have been and are still planned by the elitists. They are not coincidence nor are they perpetrated by rogues or rogue regimes. Planning economic imbalance, recession and depression today to effect world government is easier than it has ever been. What with monstrous debt worldwide, but particularly in the US and UK, it is very easy to have a financial crisis to accompany another war, which again leads to deglobalization. Impositions of tariffs, higher interest rates, along with hyperinflation, are not a cause - they are a result of actions that were deliberately planned. Deglobalization is an after thought. Americans and people throughout the world have been lulled into a sense of false security via tremendous borrowing and almost no savings. Savings, so they think, are not needed because our government and Federal Reserve tells them that. They spend merrily along, as they enter their financial death spiral. These deceivers tell us that a current account deficit of 8% is sustainable. Of course, they believe that because they want to believe that.

The elitists know anyone holding dollars will take large losses and they could care less. They know the dollar is going down, because they planned it that way. Interest rates are going up another 1% this year. They should be going up at least 3%, but Mr. Greenspan wants the financial and monetary situation to be decent for his departure. Starting next February, real negative changes will begin. The first negative action will be a 2% increase in interest rates. That would send the ten-year US Treasury note from 6-1/2% to 8-1/2%. That will devastate bond, stock and real estate markets and that is only the beginning. Forty percent of mortgage holders who have adjustable rate mortgages will see considerably higher house payments. Payments many will not be able to make. We do not see a housing boom continuing next year with 30-year fixed mortgage rates of 7-1/2% to 9-1/2%. In fact, those rates will cause a 40% loss in housing equity. That also means government debt service will rise dramatically and tax receipts will fall as the economy falls. The dollar index will go to 65 to 70 from today’s 82 and the US dollar will no longer be the world reserve currency. After that fall, all currencies will then fall versus gold. Globalization will end via contagion. That is when everything goes south at the same time and everyone tries to escape at the same time. That is the day that liquidity ends, it evaporates.

The United States is now an empire, which is being gutted. Large military and super weapons. A military that is paying a horrible price in Iraq and cannot beat a bunch of ragtag insurgents, because its leadership has betrayed them. Four thousand dead, thirty thousand wounded as globalization and free trade rips the heart out of our country. Our President and our Congress are expediting the collapse of our country. The Council on Foreign Relations tell us we need 500,000 more troops because the number we now have are insufficient for all the small wars we currently have or might have to wage. We cannot win in Iraq and Afghanistan; how could we possible win against China or Russia? If China goes after Taiwan, we will sit and watch. War is an integral part of free trade and globalization. Be assured when this whole mess comes unglued, free trade and globalization, the dreams of the elitists, will be demolished again and it will take another 50 to 100 years to rebuild the world economy. The elitists should take note. This time we are not going to be Mr. Nice guy.