Thread: Bob Chapman: Anglo-American Empire State of Collapse

Towards a Worldwide Inflationary Depression

The Anglo-American Empire is in an ongoing State of Collapse

by Bob Chapman
Global Research, June 4, 2011

According to our calculations we have been in an inflationary depression since February of 2009. Everyone looks back on the deflationary depression of the 1930s as a benchmark or a reference. As far as we are concerned the 1930’s depression only ended when the powers behind government arranged another war. Few talk about the recession of the early 1920s, which only lasted two years and was caused by the newly formed Fed, which financed US participation in World War I. They raised interest rates, which enticed citizens to save, which provided money for loans for research and expansion. The Fed, other than raising rates, stayed neutral, as did the Treasury. The result was the recession ended quickly. A bad story with a happy ending, which contributed to the roaring 20s, which the Fed eventually turned into a depression via their interference.

There was no deficit spending in the 1920s and funded debt fell by 1/3rd. That went on from 1945 to 1960. Today we have a different kettle of fish, which consists of perpetually kicking the can down the road, hoping some miracle will save the day, when those who caused these problems know full well the situation cannot now be saved without purging the system and allowing maleinvestment and speculation to die a normal death in bankruptcy. The Fed, Wall Street and speculators cannot bring about recovery, but they try anyway. Those who agree with these elitists are fools and they will pay a high price for not listening.

The Treasury is issuing $2.16 trillion in debt annually and if the Fed purchases 80% that works out to $1.7 trillion a year. As QE2 comes to end this month there will be few to buy that $1.7 trillion in treasuries and the system will collapse into deflationary depression. That means the Fed has to keep doing what it is doing. If the Fed stops we’ll have deflationary depression with a year. If they continue doing what they are doing we will have hyperinflation in 2 to 2-1/2 years.

Today’s worldwide crisis centered in the US, UK and Europe did not have to happen. It was not caused by incompetence and greed. It was designed to destroy the economic and financial system to a point where the inhabitants of these countries would beg for world government. It began, as we know it on August 15, 1971, when the US went off the gold standard. Since then the dollar has lost 98% of its value versus gold, silver and in some cases other currencies. As this became the monetary future, events were put in place to move almost all industry and some services out of the US, UK and Europe, better known as free trade, globalization, offshoring and outsourcing. In addition unsustainable debt was created to make sure the system collapsed. Of course, as far as the elitists are concerned, there is no problem - there is just a period of adjustment. Part of this adjustment is the extension of the short-term debt limit to $16.3 trillion from $14.3 trillion.

When, we ask, will Social Security and Medicare be cut? Trillions in taxes were paid for this old age and survivor’s pension. From its very inception the money was looted from the general fund and the bonds issued are not worth the paper they are written on. Mandated benefits can never be covered as the taxes are at this very moment being looted. This is a reflection of what is happening in the entire global system, a hallmark of socialism. As the debate rages, we can assure you the elderly will get screwed again with major cuts in Social Security and Medicare.

As we said earlier the longer the inevitable is delayed the worse the result will be. We do not know what untoward event will bring on the inevitable, but it is there lurking somewhere. When it happens it will be like a bolt out of the blue.

The Anglo American empire is in an ongoing state of collapse, which they deliberately caused themselves in order to subdue and enslave humanity. We saw the faux adulation afforded to the illegal alien who calls himself president. The Anglo American special relationship still is firm at the upper levels. This includes their joint role of guardians of civilization. Just more Illuminist sanctimonious crap. The key to globalist power is control of the world banking system and we plan to take that away from them. This is not 1348, and there will be no exile from Venice. There will only be long prison terms, a confiscation of all family wealth and execution for those who have betrayed our country. This time the Illuminists will suffer the unthinkable. Something they have not suffered in the last 1,000 years.

The Fed is now holding just under $2.8 trillion in bonds of which they say $1.6 trillion is in Treasury paper. The rest is in Agency securities and toxic bonds. By the end of June they should be over $3 trillion. Our question is what is the real figure? How much do they have or are they committed for with other nations that are not visible? Remember, it took two years and a trip to the Appeals Court to force the Fed to tell us what they were secretly hiding from us. As a result they have no credibility, so anything they say has to be taken with a grain of salt. From June to June, we expect that $1.6 trillion to grow to $3.3 trillion and the Fed may well have to disperse another $500 to $850 billion to keep the system afloat. That would bring to figures to $3.8 to $4.15 trillion. That should be enough to keep the system afloat, provide 50% hyperinflation and tend to the beginnings of WW III. The creation of war will be the distraction needed to force inflation, debt and monetary problems into a second position. Who worries about money and purchasing power when they may be dead shortly? This is the pattern the elitists have followed for centuries.

At the same time the amount of Treasuries purchased by foreign investors and other nations are falling and that we believe will continue. The question then arises how much additional paper will the Fed have to absorb – another $600 billion a year? We do not know that answer, but it doesn’t look good.

We believe after having seen Mr. Strauss-Kahn set up for extinction as head of the IMF and as the main challenger to Mr. Sarkozy, that there is a power struggle going on between the European and the Anglo American interests to above all make sure that the dollar remains the world reserve currency no matter what the circumstances. This is really the main battle that is going on. The Europeans want the SDR, the British and Americans the dollar. The latter’s thinking is that since WW II the US has again and again saved the world economy, being the engine that has driven all economies. In the recent case of China it is the same as well. If US markets had not approved and opened their markets to China’s exports and most favorite nation treatment, China would not be where it is today. The American elitists believe the dollar deserves its position no matter how much they have damaged it.

You can see Europe going all out to make sure French Finance Minister Christine Lagarde becomes head of the IMF. They want a European running the IMF in spite of the fact that Strauss-Kahn said in 2007 that the next leader of the IMF would not be a European. That is why the Mexican finance minister, Mr. Carstens, threw his hat in the ring. He is in reality the US designate. An additional reason that has brought Lagarde strong European support is that Sarkozy wants to get rid of her, because she is doing a good job. Another reason we see conflict within the inner sanctum is that Greece could bring down the ECB and the euro and it seems the elitists would like that. It switches focus away from a falling dollar and destroys its main competitor, the euro. This is a titanic struggle that most observers are missing. It makes Strauss-Kahn’s arrest and termination at the IMF and his fall from socialist party grace a diversion. The battles are for the continued supremacy of the US dollar and more control over the IMF via Carstens. US interests want a Greek default and a euro breakup. The US rating agencies continue to attack the ratings of all of the weak euro counterparts and at the same time short European country bonds. The UK is in this with the US up to their eyeballs. The US and UK have left Europe to swing in the wind. This is what is really going on in Europe. Remember, there is no honor among thieves.

Late developments from our contacts in Greece tell us the bankers, EU and IMF had best forget about collateralizing debt (Mnemonic). The entire country is now aware of what the bankers are up too. What put the frosting on the cake was that a publication in the Netherlands said as a result of the secret deal, the Turks would get a Greek Island and raise their flag over it. That has really enraged the Greeks. PM Papandreou told 30 of his party legislators (Voulefles) that if they didn’t vote for collateralization he will fire them and replace them with people off the street. He obviously thinks he is a dictator because that is beyond his legal authority. Each day 150,000 people are surrounding the Vouli, the Parliament and the members are growing. PM Papandreou now only moves by helicopter, obviously fearful of assassination. One thing is for certain he will have difficulty ever living in Greece again. A woman professor said on TV that a Patriotic resistance has already started in Crete and in many smaller cities; people are signing up in the new movement. The police cannot handle the massive crowds and the military is securely behind the people. The bankers had best give it up and walk away. They are going to lose this one and it means the end of the euro zone and the EU.

Switching back we must remind you again that the Fed is monetizing $900 billion, not $600 billion as you have been told. Without that number the Fed could not have accomplished all of its Treasury buying. Of the almost $2.8 trillion in bonds some $900 billion are toxic waste, that is about 33%. We do not know their value, but we would guess it to be close to $200 billion, which the American taxpayer will get to pay for – that is a $700 billion loss, if that is what it works out to be. By what has happened over the last few years we conclude the Fed is the main source of economic instability. There is very little savings and that is understandable with virtually zero deposit interest rates. The Fed can throw money and credit at the problems, but in the final analysis you have to have a large pool of savings to borrow from. For some time there was negative savings. Presently they are 4% to 5%, which is inadequate to launch a permanent recovery. Quantitative easing only temporally solves the problem. The Fed’s approach has driven what savings there are and funds from QE2 into speculation and that does not create recovery. Loose monetary policy diverts funding away from positive recovery activities to speculation and into bubbles. The Fed’s policies will bring about one or two conclusions: hyperinflation is obvious as an extension or present policies. The other is a cessation of creation of money and credit, which will bring about a falling economy and economic contraction. At least at this juncture the Fed continues on Plan A – expansion. At the same time we are told an increase in interest rates are a long way off. Toward this end the Fed’s balance sheet is quickly expanding and we do not see any slowdown ahead. An increase from 15% to 17% might not seem like much, but it is, especially when savings numbers are falling causing a loss in underlying momentum. This is negative for Treasuries because 80% of buying has to continue to come from the Fed via monetized money created out of thin air.

If anyone believes higher inflation is going to act as a governor on monetary growth they are mistaken. The Fed has little concern regarding inflation and price stability, if they did they wouldn’t be doing what they are doing. The government lies about the CPI figures and the Fed swears to it. The figures are far higher than stated and anyone who believes official figures is very remiss in professional evaluation.

Between the Fed and Congress $1.8 trillion has been spent to achieve 1.8% growth in the first quarter and all indications are that the economy is slowing again. We thought the carryover in the first quarter would have been 2-1/2% to 3-1/4%, but that didn’t happen. We expected a further slowing in the second quarter to 2% and then negative growth for the remainder of the year. We’ll stick to that projection, but the slippage will come from a lower level. Unless QE3 is already underway we should see minus 2% for the second half of the year. What professionals and investors have to understand is that what the Fed is doing doesn’t work and the Fed knows that. The longer they create money and credit the higher inflation will rise along with gold, silver and commodities and the lower the dollar will fall versus other currencies, but more importantly the lower the US dollar will fall versus silver and gold.

The same kind of condition exists in Europe with the same systemic corruption we see worldwide. The current Greek government is an excellent example. It is probably the most dishonest since WWII. And that includes the mid-80s communist government of George’s father, Andres of the Papandreou crime family. As we look back we wonder what EU countries were thinking of when they knew they were subsidizing a lifestyle Greeks could never afford? Government workers were retiring at 50. Living standards have been cut 30% to 40% and retirement is now 70 years. These are appropriate measures, but the changes should have been stretched over years. The shock has essentially crippled the economy. Even Draco was not that cruel. The very concept agreed to by the Greek administration to put $400 billion in assets into the hands of foreign experts is something that will harbor strife for years to come. It must be remembered that the banks and governments should have never made those loans in the first place. Who is to know whether these fellow EU socialists are going to do any better than the Greeks have done? The European and British banks want their money back, and it will be interesting to see if they are successful.

In the US a similar situation exists. Even if there is debt approval on August 2nd, the damage caused by the impasse will continue far into the future because printing of money and credit by the Fed is certainly not the answer and financial people worldwide are well aware of that. If legislation is not passed, real interest rates will rise from today’s ridiculously low levels very quickly. That means bonds would plunge along with the stock market, which in turn means all Treasury fiscal needs would have to be filled in a vacuum by the Fed. Hyperinflation and a dollar collapse would be the final outcome.

As a result of this predicament the only real asset the US has that is worth anything are the portfolios of Fannie Mae, Freddie Mac, Ginnie Mae and FHA. Instead of nationalization their holdings would be sold off to collateralize outstanding US debt to the debtors. That would be $6 trillion worth. Or perhaps 401Ks and IRAs could be commandeered by Congress in behalf of the state and given to creditors. The Americans thus robbed of their lifetime assets would receive worthless government guaranteed annuities. Those assets would probably be exchanged for perhaps $0.50 on the dollar or $0.33 on the plunging dollar. Can you see what your government has been doing and continues to do to you in order to further enrich those in government, on Wall Street and in banking? This is what you have worked so hard for – betrayal. This is probably where this is all headed and you are the victims. You cannot do much about the situation, as the Greeks and others cannot, short of a military coup. This is where you stand and this is where this is all headed and you had best prepare for it, because if you do not you will be very sorry.

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Great Depression-Level Unemployment in America

by Washington's Blog
Global Research, June 3, 2011
to many charts / links to post; go to the link below to view them

http://www.globalresearch.ca/index.php? ... &aid=25098

The Greatest Depression Has Only Begun

by Global Research
Global Research, July 2, 2011
- 2011-06-02

The greatest depression in human history is still in its starting stages. What the media and many officials often refer to as the "hangover" from the global financial crisis is in fact the end of the beginning. Originating in 2008, the global economic crisis took the world by storm: banks collapsed, the "too big to fail" became bigger by consolidating the rest, governments bailed out their financial industries, masses of people lost their jobs, the 'developing' world was plunged into a deep systemic crisis, food prices rose, which in time spurred social unrest; and the Western nations that took on the bad debts of the big banks are on the precipice of a great global debt crisis, originating in Europe, hitting Greece and Spain, but destined to consume the industrialized world itself. Though many claim that we are in a "recovery," things could not be further from the truth.

As the mainstream media is finally catching on to the reality of the mirage of the so-called "recovery", reports are surfacing about a dire global economic situation:

"Evidence of a deterioration of global manufacturing growth and renewed weakness in job creation in the United States emerged Wednesday, two reversals that have markets bracing for an economic pause, or worse... Add to that a daunting list of aggravating factors: the continued implosion of the U.S. housing market, an outbreak of worldwide risk aversion, high crude-oil and gas prices pinching consumer demand, further tightening in China and other emerging-market economies, stock market losses, lack of credit growth, the looming end to the Fed’s monetary stimulus, weak business capital spending, and the still-unfolding sovereign debt crisis in Europe."

And now top financial experts are warning of a new financial crisis altogether, since the monstrous derivatives market that played such a nefarious role in the preceding crisis has not been altered, nor have its systemic risks been addressed. The derivatives market - essentially a fictional electronic market of high-stakes gambling - has a value ten times that of the entire global gross national product of the world's countries combined. This market is dominated by hedge funds and the "too big to fail" banks, who in fact created the derivatives trading schemes. As one leading hedge fund manager recently stated, "There is definitely going to be another financial crisis around the corner... because we haven’t solved any of the things that caused the previous crisis." The market for derivatives is somewhere in the realm of $600 trillion.

The most recent publication by Global Research, "The Global Economic Crisis: The Great Depression of the XXI Century," (Michel Chossudovsky and Andrew Gavni Marshall, editors) examines the true nature of the crisis the world faces; not only its historical origins, but its depth and future repercussions. No other book on the subject takes such a nuanced and multi-faceted approach to examining the global economic crisis. Over a dozen different authors, researchers, economists, academics and former policy-makers contributed to this important book. Included within are: an examination of the history of the central banking system, the emergence and role of neoliberalism, the myth of the "free market", the role of war and empire, the National Security State, the relationship between economic crisis and the militarization of domestic society, global poverty, the food crisis, the roles played by major think tanks such as the Council on Foreign Relations, the Trilateral Commission and the Bilderberg Group, the nature of the derivatives market, the uses of the crisis as an "opportunity" to forge ahead with long-held plans for a global central bank, a global currency, and a global government, and much much more.

This book is not merely a history, it is a warning, and its message should be heeded now more than ever. As the crisis continues and deepens, as the wars exapand and multiply, as the very institutions that created the crisis are given more power, and as governments become more repressive and people become more resistant, it is vital for all to know the true nature of the crisis we face, the reality of who caused it, and where it is taking the world.

“This important collection offers the reader a most comprehensive analysis of the various facets – especially the financial, social and military ramifications – from an outstanding list of world-class social thinkers.â€

The Anglo-American Relationship: Vision of a War Without End
Obama's Visit. Part II

by Felicity Arbuthnot
Global Research, June 5, 2011

"Security is the mother of danger and the grandmother of destruction." Thomas Fuller (1608-1661.)

Having joked about putting the "apostrophe" back in Obama (as in O'Hanlon, O'Reilly, O'Rourke) in Ireland (and having apparently forgotten that his family name comes from Africa not Ireland) President Obama fled Ireland ahead of the clouds of volcanic ash from Iceland, again plaguing European flights, arriving in London a night early. The American Ambassador being unexpectedly charged with putting up the Obamas and making arrangements for a cast of approaching two thousand.

Listening to his speech to Parliament, the re-eruption of the volcano seemed a bit of an omen.

Having reminded parliamentarians and the House of Lords, that they were in the presence of greatness (" ... the last three speakers here were the Pope, Her Majesty the Queen and Nelson Mandela") he delivered a lesson to them and the U.K's population on their own history. There was the Magna Carta, a brief resume of the laws formed, over centuries, in Parliament's Westminster Hall, where he spoke - and of course Churchill, Roosevelt and the "special relationship", dredged up as inevitably the mud from the river Thames, flowing outside the building .

We had, to quote Churchill, "fought them on the beaches .." together. Obama in fact put it: "We are the allies who landed at Omaha and Gold, who sacrificed side by side ..." said the man who (as Prime Minister Cameron) was born a couple of decades later. Forgotten now, was that shortly after the "sacrifices", many of his father's countrymen were fighting the British in war for their country, which has currently brought Kenyans to London's High Court, still seeking reparation for alleged unspeakable tortures suffered at British hands. Pity he didn't use the occasion to say a word on their behalf. From Kenya to Basra, from My Lai to Falluja, little changes, including the delusional re-writing of history.

Then on to the "shared values." The: " ... longing for freedom and human dignity ... is universal (beating) in every heart." He continued: " ... there are few nations that stand firmer, speak louder, and fight harder to defend democratic values around the world than the United States and the United Kingdom."

"Together, with our allies, we forged a lasting peace from a cold war (our alliances now include) the nations of Easter Europe." No mention of forging of U.S., bases there, of "extraordinary rendition" arrangements and a proposed U.S., missile "shield" - and Russia now near surrounded by U.S., bases.

"And when there was strife in the Balkans, we worked together to keep the peace." Heaven preserve any people who come under a ten week "peace keeping" blitzkrieg (24th March 1999-11th June 1999) involving one thousand aircraft and thirty eight thousand bombing missions.

The combat mission in Iraq was over (tell that to the Iraqis) the Taliban were "broken", al Qaeda had been struck "a huge blow by killing its leader - Osama bin Laden." (Don't mention the assassinations.) But: "New threats spread across borders and oceans", there are "terrorist networks" to be "dismantled." Our "indispensible alliance", however, is on hand to sort that out. "The time for our leadership is now." Parliament applauded, the right minded surely shivered.

With no sense of irony, President Barack Hussein Obama related that: "Millions are still denied their basic human rights because of who they are, or what they believe." A reflection deficiency on some scale. His predecessor had declared a "Crusade", and his own Administration was threatening, occupying, bombing or demanding regime and belief change, in an entirely American vision of how affairs should be run - only in majority Muslim countries.

Together, the U.S., and U.K, would forge "economic leadership", defeat pollution and "leave our children a planet that is safer and cleaner." Another venue, more elephants: depleted uranium bombs near certainly raining down on Libya, the deformed and cancer riddled children of Falluja and across Iraq and Afghanistan; still paying the price in the Balkans - a price which will only begin to "deplete" after 4.5 billion years.

And is Libya - as Iraq before it - the new blue-print for "economic leadership" - freeze all perfectly legitimate bank accounts, keep or "redistribute" national wealth, grab all natural resources, bomb back to a pre-industrial age - then award the reconstruction contracts to the destroyers?

"Our nations" would "confront evil" as we had "fought them on the beaches and on the landing grounds", but that was Hitler, "today we confront a different enemy (who have) killed thousands of Muslims - men, women and children - around the globe." Comment redundant.

"We fight an enemy that respects no law of war (but we live) up to the values, the rule of law and due process that we so ardently defend." Amid the applause, the small matter of these "values" having included the illegal invasion and destruction of Iraq (and a pack of lies to justify it) the ongoing bombing of Libya without Congressional approval, the more than questionable legality of the invasion of Afghanistan, the illegal bombing of Pakistan, and the threats against Iran to mention but a few. (In context, in a co-authored piece in The Times - 24th., May - Obama and Cameron wrote: "We are reluctant to use force, but when our interests and values come together, we know that we have the responsibility to act.")

"Interests" eh?

Irony thicker than smog pervading the thousand year old Hall, was apparently lost on his rapt audience of law makers. He talked of the threats of: "terrorism, piracy ... ballistic missiles" - as ally Israel is not brought to account for the murders on and seizing in international waters, of the Mavi Marmara exactly a year ago, the previous ramming of the Dignity, also in international waters, and the threats to any ships heading for Palestinian territorial waters. And clearly the terrorism and ballistic missiles of the U.S.-U.K "indispensible relationship", in enyclopaedia-length acts and decimations, are a price others must pay, any time, any where, to have our "shared values" bombed in to them.

As hospitals continue to be bombed in Libya by the "allied forces" (as in the other "liberations" thirty two in Baghdad alone, according to a recent Report) : "We should try and help the hungry feed themselves, the doctors care for the sick ... support countries that confront corruption ... allow women and girls to reach their full potential." Freezing national assets and bombing, equals empty food stores, no wherewithal for doctors to treat, even where facilities remain - and in Iraq with a previously womens' work force virtually equal to men, Baghdad University studies show women have been set back around a hundred years. Educational drop out is estimated at up to seventy percent. Iraq and Afghanistan under U.S., and U.K., occupation became two of the most corrupt countries in the world.

"Power rarely gives up without a fight", the Nobel Laureate informed. Indeed. And magnanamously, "sometimes" (we will work) "with partners who are not perfect: to protect against disruptions of the world's energy supply." Goodness, wonder how that one slipped in.

For those cynically thinking Libya was about oil, and the so called "Eighth Wonder", the project to release the country's gigantic water reserves, the gold bullion in the Central Bank and the country's strategic value, no. It is: " ...truth that guides our action in Libya." There's a first. And: " ... when a leader is threatening to massacre his own people ..." - straight out of that Iraq hand book again. And were there not allegedly a few CIA backed "rebels", who kicked it all off in Benghazi?

"We will proceed with humility" - surely if the audience had been standing, rather than sitting, at least a few would have fallen over. Freedom must not be:: "imposed from without." Contrarily, the U.S., and U.K., have delivered it: "from the beaches of Normandy, to the Balkans (and now) Benghazi." The two countries share: "a leadership essential to the cause of human dignity (and are) indispensible to this moment in history." They are : " .. two of the most powerful nations in the history of the world", not alone militarily, economically or because of: "the land we have claimed" (another truth, read killed for and "invaded.) Delusion reigns supreme - and no mention that both are "economically" approaching basket case status.

Another shared value, again oiling his way back to Churchill and Roosevelt and "manifest", as in destiny, is a common belief in : " ... a conviction that we have a say in how this story ends." When the President signed the visitors book at Westminster Abbey he dated it 2008, the year he campaigned with the "Yes we can" slogan, played his African roots, not his Irish ones and won. Perhaps a scary Freudian slip: "Yes we can" - now anywhere on earth.

The President chose to send his daughters to the Sidwell Quaker school, which nurtures the "inner light" in every child (the "light" he has followed his predecessors in putting out, in children beyond counting, throughout the globe.)

I wonder if he has read the first Quaker declaration, proclaiming peace, a testimony, by Margaret Fell, to King Charles 11, of 1660:

" We are a people that follow after those things that make for peace ... it is our desire that others' feet make walk in the same, and (we) do deny and bear witness against all strife and wars ... Our weapons are not physical but spiritual and (we) speak the truth in plainess and simpleness of heart."

It seems every line, commitment, statement, action, contradicts the previous one. Were he not the President of the United States, it might be funny. I wonder if his daughters too, are confused.

See Also : news.smh.com.au/breaking-news-world/libya-says-nato-raids-killed-718-civilians-20110601-1ff79.html

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