As William Bendix, "Reily" use to say, saints preserve us.
Pushed by the Mexican government, the Bush administration
is working on a Social Security accord that would put
millions of Mexicans onto the Social Security roster and send
hundreds of billions of dollars in benefits into Mexico. It is
supposed to be in force by October. In the first year 37,000
new claims from Mexicans who worked in the US legally and
paid social security taxes but have been unable to claim their
checks would collect. Our government says the accord will
cost $1 billion a year and bring 162,000 Mexicans into our
system in the first five years. Under the 1996 immigration
reform law, Congress decreed that foreigners not legally
residing in the US could no longer claim benefits unless their
home countries were subject to a treaty. Quite frankly that is
grossly and criminally unfair. They should receive benefits;
this is money these workers paid into the Social Security
System. This is their money. We do not agree with paying
benefits accrued illegally while a Mexican was an illegal alien
in our country breaking our laws. The US government has
accrued $21 billion from these illegals and the government
should keep that money.
For the first time since 1988 mutual funds had a net outflow
of about $10 billion. Inflows into bond funds was about $127
billion breaking the record set in 1986 by at least 10%.
We had to laugh at a recent Financial Times editorial. We
remember well, their take on the stock market in April of
2000, when we gave our famous sell signal, the market will
turn around in six months. This will be but a brief
interruption of the greatest bull market in history.
Ninety-eight point eight percent of Wall Street agreed at the
time. Both are still in denial. In last Sunday’s editorial section
the FT told us that equities had not fallen three years in a
row since WWII, it was unprecedented and would quite
possibly continue. Not only have we seen the deflation of the
biggest stock market bubble in history, but we’ve had 9/11,
corporate malfeasance, the rape of investors by Wall Street’s
biggest and richest firms, a loss of pricing power by
corporations, wars and perpetual war continued by our
President, massive debt by consumers, corporations and
government, a real estate bubble, credit bubble, pension
bubble and derivative bubble. Gold has broken out into a
new bull market and if Napoleon Bush has his way we may
have an uninhabited planet. We have had two major bear
market rallies calculated to keep the suckers in while Wall
Street and government lies to them and the elitists and other
connected parties sell a series of declining tops. The Federal
Reserve chairman Sir Alan Greenspan lies by telling us of
soft patches, but what else can you expect from a private
corporation owned by world elitists. He continues to exalt in
the myth of productivity, which in reality is 2%. He leads us
to believe corporate profits will increase. He can tell that to
the 12% unemployed who are no longer consumers. We can
promise you consumer retrenchment is a reality and 2003 will
be a dreadful year, worse than 2002 both for the economy and
the stock market. Commentary such as this never can find its
way into the establishment media. We can’t get on television;
they won’t let us on. We are on radio a few times every week,
but never on video. The bright spot for investors that will
listen is that gold will be a super winner again in 2003 and on
into 2004. The world financial system has been ravaged and it
will take considerable time to mend. Tastes are changing as
adroitly pointed out by McDonald’s comeuppance. It is a
symptom of rebellion and change against world
homogenization and globalization. You are witnessing a
major change in attitudes and culture in the vein of we won’t
take it any more. You might say McDonald’s is the
personification of elitist America that is not only being
rejected by foreigners but by Americans. Besides consumers
are finding out that all these years that they have been
misinformed regarding food, diet and supplements. People are
eating and living healthier in spite of the drivel on TV and
from their physicians. These are mega changes in society and
culture and with these changes will come the re-emergence of
gold as money and a store of value.
The SEC has launched an investigation into possible
fraudulent accounting practices while VP Dick Chaney was
at the helm. The SEC must have some pretty heavy evidence
to move on a firm like Halliburton. Let’s see how arrogant
George Bush will be on this episode. The investigation comes
as the President attempts to calm investors leery of
accounting problems and the criminal behavior of American
business. We can thank Judicial Watch for the investigation,
which the SEC was forced to conduct, after they filed a
lawsuit against the company and Mr. Chaney for lying about
revenues and overstating $445 million over three years.
Hewlett Packard, Dupont, Honeywell, and other major US
and foreign corporations, as well as US government agencies
including the Department of Defense and the nation’s nuclear
labs, all illegally helped Iraq to build its biological, chemical
and nuclear weapons programs. The names of all the
violators had been selected from the version made available
to the non-permanent members of the UN Security Council.
There were 24 major companies involved. The US
blackmailed Columbia, the presiding member on the Security
Council to give the US the copy and the US government
eliminated the names of the companies and then passed it
back to Columbia for dissemination to Britain, France,
Russia and China.
For all of you who have been deceived by Wall Street, CNBC
and your government and were convinced to invest long term,
it may interest you to know that those who invested long term
in 1928 took 25 years to get their money back and if they
stayed long in 1966 it took 16 years to get even. This is hardly
the secret to success. They just want you long so they can sell
their own paper.
We previously wrote that intelligence informed us that the
weapons of mass destruction that Saddam Hussein
supposedly had didn’t exist and there would be no war. If our
President did go ahead without UN approval he would be
liable for war crimes trials. Obviously he could care less, as
all the pretenses have been discarded. Now its simply regime
change. It’s really a replay of Panama with oil thrown in for
good measure. Mr. Bush is busy buying everyone’s loyalty in
Iraq that he can with cash and he plans to spend $100 million
training an Iraq militia force to help overthrow Hussein.
Remember none of these Muslim groups support America or
its policies. All they want is the cash and a chance to feast on
the spoils of Iraq after Hussein is overthrown. Don’t forget
Saddam and Osama bin Laden were our friends and agents
for cash not that long ago. Time and again our leadership has
chosen the wrong groups or leader. Again we are going to go
a bridge too far, which could turn into WWIII.
In 2001 there were 107 IPO’s, which raised $38.99 billion, in
2002 there were 97, which raised $26.84 billion. 2000 saw 391
IPO’s raising $61.43 billion. Contrary to street estimates of
an increase of 10-20% in 2003, we see a drop of 20%.
Barton Briggs, longtime market strategist at Morgan Stanley,
will leave the firm to run a hedge fund, which is perfect for
him. Biggs, one of the best on Wall Street is still smarting
after being forced by management to change directions and
predict a higher market. This forced him to look like a total
fool on CNBC.
In a newly released report the Fed said, if it were to buy
Fannie Mae or Freddie Mac bonds as part of its conduct of
monetary policy, such a move would aggravate what it views
as the economic distortions and risks to the financial system
that the mortgage companies already pose. The report
prepared two years ago due to the shrinking supply of
Treasury bonds was a comment on the Fannie-Freddy
alternative. What held the FED back was that it would have
been in appropriate for them to allow the two agencies to
expand their operations. "This expansion could further affect
credit allocation and increase systemic risk", said the Fed,
which believes the two agencies are subsidized by the
government. The latest report goes further, by suggesting they
are a source of risk to the entire financial system. We totally
concur and before this depression is all over they will have
gone bust and we the people will have to pay for the financial
machinations of the elitists. The subsidy presents a major
systemic risk to the financial system. As you can see the Fed
has really very few options other than Treasuries due to
major risk.
What a deal Eliot Spitzer made. He didn’t have to go to court
and the banks were excused from admitting any culpability, a
setback to injured investors who have been pursuing
restitution through private suits and arbitrations. No one will
be charged with a crime and they neither admit nor deny.
Citigroup overseer, Sandy Weill, not only escaped individual
responsibility, but his company got off the hook cheap. Wall
Street will go on as before screwing its clients or sticking to
its business model. Mr. Spitzer is now recognized as global
securities regulator. He, as we suspected, has bailed out the
major Wall Street crooks. No jail time again. There has not
been, nor will there be for many years any restoration of
confidence in Wall Street. This was just the tip of the iceberg.
Can you imagine what they get away with and never get
caught? There was fraud and criminal intent but now it will
never get into court because the system is fixed for the
insiders. You steal $100 billion and pay back a billion. That’s
a good return on criminality. This deal was also a payoff to
Mr. Spitzer. He let them off the hood so they’ll back him for
governor. Another disgusting disgrace. Incidentally, we
owned a stock brokerage house for many years, so we really
know how it all works.
The State of Connecticut is cutting thousands of jobs. The
new school in Danbury and another expansion of one in
Southbury are being put off. These cuts equal $21 million and
expansion in Rochambeau of $18 million. The state faces a
$500 million budget deficit this year and a $1.5 billion
shortfall in 2003. Legislators approved $1.7 billion in school
construction projects obviously oblivious to the state of the
economy. These people are not in denial; they don’t have a
clue to what is happening.
For the economy to reverse its downtrend, corporate spending
has to reverse course and pick up as consumer demand falls.
We see absolutely no chance of that happening over the next
two years, unless Napoleon Bush gets us into a third world
war. Americans have already stopped buying SUV’s and are
increasing savings. Corporations can’t justify increased
spending if demand isn’t increasing. Commodity prices have
increased 20% from lows making it more expensive to
expand. Those increases are a result of part of the flight to
quality.
Incursion into the Treasury market by the Fed has been small
and infrequent recently. In 2002 they intervened about 37
times to buy $33 billion in debt. Last year they went in 63
times for $53 billion. Due to moderate economic growth,
lower interest rates and refinancing they haven’t had to
intervene nearly as much this year. This has made
intervention less frequent and the growth of currency in
circulation moderate. When there is less growth you need less
money. That could change in the spring. Not because of
growth, but because of a slowing of refinancing. Many expect
the Fed to soon pick up the pace of Treasury buying, if only
to rebalance the relationship between its permanent and
temporary operations.
JP Morgan Chase was delivered another death blow as a
judge will allow a jury to see E-mails, in which high-ranking
JP Morgan executives wrote of "disguised loans" that could
have broader implications for other suits against the firm,
including suits by angry shareholders. The jury will hear two
E-mails penned by Morgan Vice Chairman Donald Layton,
in which he refers to the transactions as disguised loans. As
you can see the duplicitous deception goes right to the top of
Morgan, as does their leadership in the gold manipulation
cartel.
For 33 months we’ve heard the same old tune, recovery is just
around the corner. Well, that hasn’t been the case.
Ninety-eight point two percent of establishment experts have
been wrong and we, and a handful of others have been right.
So why would you listen to these perpetual losers? How can
anyone trust mainstream propaganda and deliberate lies?
What they have to say flies totally into the face of reality.
There is no financial stability. New bankruptcies everyday
and increasing unemployment and the real estate debt,
pension and derivatives bubbles haven’t even been broken
yet. The establishment’s attempt to save the economy has
failed and will continue to fail until the system is purged.
What is totally lacking from our media, CNBC, Wall Street
and government is truth. Even though many see the truth
they can’t speak of it because they have a vested interest in
the system as it is surviving. That is denial and hoping for the
best. The public really doesn’t want to hear the truth. They
may be bitter regarding their losses but they say nothing.
They won’t be back, but they are reluctant to talk about it.
They are ashamed for being such fools. We have brokerage
firms that stole billions of dollars of investor’s money and get
$2 billion in fines, little of which will benefit the losers. What
a farce, how criminal. All these crooks should be in jail, but
Mr. Spitzer let them off the hook. It was all planned. It was a
set up. Don’t you get it? It’s not a global settlement; it’s a
global cover up. There is no honest discussion left. We
haven’t seen one person who called the market right over the
last 33 months on CNBC. God forbid the investing public
should even get an inkling of the truth. The fact that gold is
the only real money never really reaches the public’s ears.
Well, we have news for them. No matter what they do the
public will discover gold again and gold will soar. Fiat
dollars will decline in value, American’s buying power will
diminish and more and more jobs will go to the third world
and America will become part of the third world through so
called free trade and globalization. Don’t you get it? Your
heritage and your culture are being destroyed before your
eyes. Your politicians, with minor exception have sold you
out, as politicians have since antiquity. The elitists are
determined to rule our lives. They get more powerful and
richer each day as they use their servants to institute fascist
government in America. Now all the signs are there, the
dollar has broken down to a new yearly low, gold has hit new
yearly highs and the economy continues to falter. Yet you
hear little about it in the media and particularly on CNBC.
As if it really wasn’t happening. As we write, there is another
false pundit telling us of the wonder that 2003 will bestow
upon us. Either the man is a moron, after having been wrong
for almost three years or he’s a liar. Both are detrimental to
your financial health. As the second major bear market rally
comes to an end we are told we are in a new bull market.
Only in your dreams Wall Street. If Wall Street, the Fed, the
Treasury and so called economists think low interest rates
and an avalanche of cash will allow the economy to recover
they are mistaken. Reducing individual and corporate tax
rates reduces income, increases debt and lowers the value of
the dollar. Foreigners cut prices on goods putting more
deflationary pressure on the economy. It a vicious circle,
which ends up in the same place no matter what government
and the Fed does. War will not bring recovery. Defense
spending is destructive. It creates nothing. It is not good for
the economy. Thus, war will bring a lower stock market not a
higher one. More fiat money is not going to save the day, nor
is war. You can expect more of the same from the
establishment as they go down in flames. For those who
believe recovery is just around the corner, October,
November and December were very heavy layoff months and
January looks to be worse. We believe 16 million Americans
are out of work not eight million, as government would have
us believe. They conveniently count what they want. Now we
have burgeoning unemployment and consumer exhaustion
simultaneously and we haven’t even attacked the debt bubble
yet. Nor has our illustrious Treasury Department told us how
they will reduce the largest current account deficit in history.
Nor have we seen the end of corporate scandals and further
proof that American investors are being fleeced by Wall
Street and their banker friends. Corporations are in a profit
squeeze, they have no pricing power left. There will be no
recovery in 2003. How can there be when stores have to
discount 50 to 90% to sell goods and services are next. Even
Alan Greenspan in his recent speech warned of the possibility
of deflation. He knows it is already here but he can’t tell us
that. He has even told us lower interest rates may end in
failure, but says he has no control over the possibility of war.
As we have been telling you for 33 months the war is a cover,
but the elitists always have multiple objectives when they
execute a plan. The others are the control over oil and gas in
the Middle East and hedge money over the region. This war
maneuver will last for years as the economy sinks deeper into
depression. At that time parents are happy to send their
children away to be murdered in the name of a fascist state.
We were well on our way to depression long before 9/11 and
terrorism. What kind of a government and Federal Reserve
do we have when they tell us they’ll print money until we
recover? How stupid do they think we are? Not only is the
economy beyond control but also the Fed is out of control.
Deflation is here and it will continue just as sure as gold is in
a new bull market and will reach even higher prices.
As we wrote not long ago it is suspicioned that lending
departments at some banks are telling traders at their firms
of pending problems at corporate clients, allowing the traders
to act before the information is made public. Bankers are
telling traders who is trouble, prompting trades to assume
positions in the unregulated derivatives market that allow
them to trounce the other side of the transaction. The center
of the problem is in the credit derivatives swaps market. The
sellers, the losers, are very suspicious because the
credit-default swap market frequently has moved in advance
of the disclosure of sensitive data about companies. Complain
as they may, the players play in a totally unregulated arena.
There is no case law and no legislation. Credit-default swaps
have been adjudged not to be securities thus far therefore the
SEC can’t intervene in the market. The bottom line is in
many respects the market is rigged and everyone knows it.
They are all professionals so if they don’t like it they don’t
have to play. |
