Dreadful Market Perceptions

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August 14 2010: Dollar dumped and bad decisions, pour in money or impose austerity, more subprime and eurozone crises on their way, insiders killed by the truth, economists urge action against unemployment, Wells Fargo overdraft charges slammed in class action

As we explained in the last issue that when GDP figures are again revised we would find 2nd quarter GDP growth was really 1.3% to 1.5%, not 2.4% revised down from 3.7%. This experience points out the really bogus nature of government statistics. Several months ago we projected that without QE the economy in the 3rd quarter would result in 1% growth and minus 1% in the 4th quarter. Insiders on wall Street knew months ago that we’d get QE, which was announced on Wednesday by the FOMC and that is why they projected GDP growth for the 2nd half of 1-1/2%. We project zero to 1%. Even with a $5 trillion injection over the next two years by the Fed, we can only project 1-1/2% growth accompanied by 14% plus inflation. If you own gold and silver you will be happy. Such stimulus eventually fails and burns out, markets fall and interest rates rise.

What most professionals can’t understand is why the dollar is being dumped. It is not because it is mired in debt and bankrupt. It is not because other nations will lose 2/3’s of 60% of their foreign reserves. It is because those in power behind the scenes want world government and a global central bank based on the use of the SDR, special Drawing Right, or the bancor. This would end up with a loss of sovereignty for all nations, plus no individual monetary or fiscal policies. All decisions would be in the hands of some one-world Illuminist bureaucrat. You would be abandoning the world’s fiat currencies, excepting the euro, which is partially gold backed, for another fiat currency such as the SDR, or the bancor. How can that present an improvement? Look at the mess that bureaucrats have made of the euro zone and the EU. Look at how the European elitists had to get a constitution passed and then it wasn’t even a constitution. It was some kind of agreement to subjugate Europeans -an agreement that most of the inhabitants of Europe voted against.