International Forecaster Weekly

Burning Us Up With The Price Of Oil

Burning us up with the price of oil... borrowing expands... media seals performing... Report any unusual activity... polls tell it like it is...

Bob Chapman | June 22, 2005

Oil persists in selling at over $50.00 a barrel. Even with the bogus statistics, unemployment is worsening. Consumers now totally disbelieve on a widespread basis that inflation figures are simply lies. The combat goes on each and every day in Iraq and Afghanistan with no end in sight. As we reported a month ago, GM will shut plants and fire 25,000 to 35,000 workers, shifting more work and buying to China, as America’s industrial infrastructure is permanently destroyed. The Working Group on Financial Markets and the Fed cannot keep the market up much longer.

The US consumer is 75% of the US economy. In April borrowing grew at the slowest pace in five months. Consumer credit or non-mortgage loans rose $1.3 billion or 0.7% at an annual rate, to $2.121 trillion in April. Credit card borrowing fell for the second straight month. In March, consumer debt rose $6.9 billion. What is even more significant was that economists predicted an increase of $7.5 billion and the Fed $5.5 billion. As you can see they do not have a clue to what is going on. As borrowing diminishes the economy slows and that leads to lower long-term yields on Treasuries, which means the Fed may not raise interest rates ½% before the year is out. Last week the 10’s yield fell to an inter-day 3.84%, while the two-year paper rose to 3.58%.

It will not be long before we have an inverted yield curve that spells recession.

The trained media seals are opening a campaign to force a new government program so we can have perpetual war for perpetual peace, while profits for elitists grow larger and larger. Recruiting is a disaster because the majority of Americans are against the war. There is no terrorism, only the terrorism that is in that mindless head of the lunatic in the White House.

The media tells us a draft is the only answer for our security needs. We wouldn’t have security needs if the administration weren’t running here and there murdering people. Stop the wars and we won’t need a draft. These idiots in Washington want Foreign Legions just like the Nazi SS. Legions consisting of illegal aliens who can win citizenship with a hitch and other such mercenary legions from throughout the world. These legions are very important to the elitists because they will not think twice about firing on American civilians. We are now entering phase two of our police state. This is what it says on the new snitch poster on the MARC Commuter trains between Baltimore and Washington DC. We are in a climate similar to Nazi Germany and KGB Russia. It says, “Report any unusual activities or packages to the nearest conductor.” Orwell was right – we can see the enemy and it is our own government.

President Bush’s job approval is 43% and Congresses is 31% says the AP-Ipsos Poll. There is a bad mood in the country especially with bad news from Iraq every day. Only 35% of Americans said America was headed in the right direction, and only 41% supported Bush’s handling of the war. Only 45% support Bush’s foreign policy, down from 52% in March. Support for domestic issues was 38%, and 37% support for his handling of Social Security. Support for handling of the economy was 43%. If he loses on CAFTA, alien amnesty and Social Security he is a very lame duck president and a candidate for impeachment or assassination by his elitist friends. He will then be a major liability to them.