If you wanted to refinance – do it now.

Economic analysis by Bob Chapman

The real estate crisis is probably about 40% over. They’ll be further declines, residential and commercial, and then a basing out period that will take several years. The injection of cheap interest rates and a stimulus package of $825 billion are going to temporarily delay the downside. Instead of ending in 2011 it could extend to 2012.

Citigroup is bankrupt. Its 4th quarter loss was $8.3 billion. Bank of America posted its first loss since 1991 of $1.8 billion. One day they requested $10 billion from the government. The next day it was $20 billion.

Citigroup is being dismantled as a failed financial supermarket. Sanford Weill who created this monster some years ago created a total failure. In order to keep this loser business a new bad bank is being created to dump all of Citi’s mistakes into. Those would be toxic securities and worthless derivatives. That is $850 billion of Citi’s $1.95 trillion of total assets. What a disaster. Almost half their assets are near worthless, something we pointed out 3-1/2 years ago. Government has already sunk $45 billion into the bank and backs $301 billion of its toxic garbage and securities. Citi is a major shareholder in the Federal Reserve.

Bank of America has now received $45 billion with guarantees on $118 billion of toxic waste. It too is a Fed shareholder and it too is broke.

There is now no question that all the legacy or money center banks will be merged into one nationalized bank, which we believe was the intention from the beginning. This will make it easier later in the formation of a One-World government to merge US banks into a world bank that will disperse a world currency. Government is going to take an ever-increasing role in bank ownership and in credit policy, as would be expected in any fascist government.

We are still in the earliest stages of an economic and financial collapse, which was deliberately engineered to bring about eventual total control of our economy and financial system. Except for government and the Fed, Wall Street finance has been incapacitated. The government and the Fed are left to do as they please. Our bought and paid for Congress will rubber stamp anything handed to them. Bank credit will surpass $1 trillion this year to keep the elitist banks solvent and to delay the forces of deflation and depression. Overall credit expansion will expand to $2 trillion plus as many more banks, brokerage houses, lenders, insurance companies and illuminist corporate giants are served up all the cash and credit they need to survive. Very little will ever be paid back. Once the grip of the Fed and our Treasury is complete it will be almost their sole responsibility to extend credit. The excuse will be it has to be done to save the system as they chip you and give you a debit card and set up currency and exchange controls, devalue the dollar and institute wage and price controls. We then become wards of the state. They have allowed the banks to get into such awful shape, that they will tell you that they and America have no other option but to have government and the Fed mandate what will be done to save the system.

These conclusions can only be reached if you understand the powers behind government, their history, and what their goals are. This is why we have been able to predict what has been going on for years. Very few writers understand and many choose to keep their mouth’s shut because they fear for their lives. This has been an almost 50-year odyssey for us and we refuse to hide the truth. If you do not understand the history of the Illuminati you are in a quandary. It is the missing link that ties all the events together. You cannot use macro analysis without knowing the history of what these evil butchers are up too.

We get the question – why was Lehman Brothers allowed to go under? This was a seminal event in US and global finance. It had to be done to take the system down even though Lehman’s owners were ultimate insiders. Why do you think you do not hear a peep out of Wall Street? It is because the key people in the key firms are in on it and taking orders – that is why. In the blink of an eye trillions of dollars were lost. That amount of money is meaningless when you own the system. You can just create more. It is the power to create and control money and credit that always wins the day. The loss of confidence and trust now worldwide was deliberate. It allowed central banks and governments to totally control their fiscal and monetary systems. Essentially there was no one left to do so. Within the financial community those who understand what is happening dare not say a word or they’ll lose their companies or their lives. That is why there is no opposition from within. How can any thinking person put their trust in a government or a private Fed that has gotten us into war after war and one financial debacle after another be trusted? They can’t be trusted. They are the enemy. Think it through and you will get it. Read the “Creature from Jekyll Island” by G. Edward Griffin and other books we recommend and you will finally understand what is being done to you and who is doing it. The most corrupt people on earth. The ability to print money and create credit is the ultimate power. It allows you to control everything.

Today we have allowed our government and the Fed via our elected representatives to use money and credit to control our financial system. These deficits and guarantees will not be sufficient to stabilize and save our current financial system. Hyperinflation will rage and depression will ensue. Out of this the elitists hope to create their World Government while the world is financially and economically on its knees.

First will come repudiation of debt via default and devaluation. Then a new national currency to be followed by a world currency, followed by a chip or a debit card. Everyone throughout the world will be controlled. If you say or write anything negative regarding the New World Order your chip will be disabled or your debit card will be disengaged. Then you become a fugitive to be hunted down and exterminated. This is what is in store for us. This is what these people are up too. This isn’t intrusion, this is dictatorial government and this is where we are headed.

The answer is clear and we saw this year’s ago. The financial system is to be collapsed in stages that are manageable. You are seeing that in part with the collapse of the financial sector and the securities of these companies. This is caused by eventual government and Fed control of and nationalization of the financial industry. This will be followed by the collapse of stock markets worldwide.

This is not gloom and doom…. This is reality and the truth. The financial system will not stabilize. It is being deliberately changed. The Treasury is crowding out corporate borrowers in their quest for liquidity, as corporations rush to raise what funds they can to allow them to keep functioning and so that they won’t be absorbed by an elitist mega-company of our new corporatist state. At the same time municipalities are raising all the money they can to keep from going under having far overextended themselves.

Don’t be fooled by the respite you will see over the next nine months. It won’t last. It will be a consolidation period. Government and the Fed will be planning their next moves, as the stock market moves lower, along with bonds as long dated interest rates move higher. If you wanted to refinance do it now. You will never get a better opportunity.

The crisis is here and ongoing. The financial stocks are telling us there is a rocky road ahead. If the market was going to rally it would have already happened. It tried to breakout over Dow 9,000 and was unsuccessful. Underlying everything are lies, corruption and acute stress not visible to the public. Even many old Wall Street types do not get it and that is because they refuse to believe the actuality of what is happening behind the scenes. Those behind the scenes know full well what is going on and they are not going to fill in the rest of Wall Street, banking, government and corporate America that do not have a need to know. Housing will fall another 10% to 25% dependent on area and circumstances and more and more foreclosures will hit the market, as millions of jobs are lost. In addition, the entire world will experience this process, which worsens the situation. There is still de-leveraging to be dealt with along with the monstrous derivative problem. Focus has to be on wealth preservation and safety of person and assets. The core is your water filter, freeze dry and dehydrated food, family protection and gold and silver related assets.

The subprime and ALT-A borrowers will have reset or fallen by the wayside by the end of June. Now those in trouble are not lower income borrowers, but middle-class and upper-middle class homeowners. Some own Option ARM-pick-and-pay loans they cannot now afford or homeowners who never thought they will lose their business or get laid off. We do not see the downside nightmare hitting bottom until 2011. It may well be later due to trillions of dollars in artificial stimulus. About half of borrowers are under water and all are seeking a break from their lenders. The lenders are making few concessions. There are now no stereotypes, anyone can become a victim.

The Option ARMs are clustered in California, Arizona, Nevada, and Florida and outside the Washington, DC area.

On top of these underlying mortgages are unemployment and crashing home prices that have left a great percentage of homeowners under water.

The latest statistics we have show long-term unemployment at 17.8%, intermediate U6 at 13.8% and the phony government media figure at 7.2%. In one of the hot spots we estimate U6 to be near 16%. In 2005 and 2006 this region saw construction make up 11% of the job base.

There are many formerly prosperous people who had equity, no debt, great FOICs who have lost jobs, closed businesses, have no equity, just debts. They have maxed out the credit cards and gone through all their savings and retirement.

There are lenders who are making deals to help homeowners, but not many.

Some borrowers walk away in spite. The home next door is in foreclosure and is selling at a deep discount, which in turn put the neighbor under water. It feeds on itself.

Then there are those who refuse offers. Many of them just do not like owning their own home.

All we can say is there is plenty of pain ahead.

The players who made this all possible, the Fed, lenders, rating agencies, mortgage originators, appraisers, salespeople and buyers are for the most part walking away. The buyers and lenders are stuck, but government is bailing out the lenders not the buyers. The rest are going out of business or losing their jobs. The exception is the rating systems.

The raters, S&P, Moody’s and Fitch were the key to the biggest economic and financial calamity since the Great Depression. Why didn’t we have criminal charges brought against these crooks or at least civil action? These miscreatants gave complex, opaque toxic mortgage-backed securities AAA ratings when they knew they should have had BBB ratings, in conclusion with the Fed and the lenders. This stamp of approval allowed other crooks to market destructive securities worldwide. Some would have us believe that putting a financial floor under these players would solve our problems.

That is not the way it works. Bailing them out accomplishes nothing. It just extends the problems into the future.

www.theinternationalforecaster.com

 

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3 Responses to “If you wanted to refinance – do it now.”

  1. Lynda Says:

    Dear Founding Father,

    Another excellent analysis of the Global Financial Crisis. This is a code word which the Overseers flash around. And I think you understand very well what this means for the private corporation of the UNITED STATES OF AMERICA chartered in DC – part of the empire of The (Global) City.

    Whereas Americans as natural, sovereign persons are under the Constitution of the Republic, but as people should know by now – the Empire of the City (the three stars and the Infringed flag) has its own rules and the list grows longer every day. And God help a natural person who so much as infringes any one of them – the cattle prod will be applied by the Enforcers. They call this Negative Reinforcement.

    The Fed (a huge private money trust) and its subsidiaries / corporate structure interlocked through the FDIC has created this GFC for a lot of reasons. They hired out of work scientists to create the mathematical models for the creation of Wealth Devouring Debt – which they would then sheet home to Americans through their FDIC and all affiliated institutions. My image is lots of little Pac Mans / Sonic Hedgehog (Fund) Brokers just going berserk on the Monopoly Board.

    They engineered this GFC for a reason. Your article covers the Big Picture.
    Their goals in terms of building the NWO are Big Picture. The GFC is certainly intende to serve those goals. Whether it succeeds or fails as strategy will determine its value in the service of those goals.

    What is needed by way of response to your article is for people to kick around what they anticipate the Reaction will be to this Crisis engineered and executed by the Fed according to the Globalist Agenda of its Owners and their Directorate.

    What Reaction do they want Their GFC to Provoke?

    On the other hand there will be a Response/s to the GFC that will serve American interests as a national population. This Response will have considered what is the Reaction / s or Outcome that will serve the DC / NWO Agenda. Once this is determined, a solidarity can be worked out along the lines of Response that will move American Agenda forward.

    For what it may be worth – it occurs to me that the Reaction which the Fed and its Owners intend to provoke is this: the nation implodes as people fight over the necessities of life – a fight that will shape up along race / class / religious lines. As it always does in Their great social laboratories where they place populations under stress in the necessities of life. Just like they created the GFC and ‘came to the rescue’ with the Bailout, they will certainly back all factions of the Implosion – while they herd as many as possible into the cattle cars of their own NWO Solution.

    Their new messiah and his ‘national responsibility’ programmes can certainly be made to look like the way to ‘peace and security’ if the social context is manipulated. (And it will be) Destination NWO Trilateral geo/political conglomerate – the NAU.

    This is a picture that saddens every heart. The American sheeple, having
    just been shouldered with the World Devouring Debt (created by the Fed and its instruments) taking Responsibility through Work and following the new messiah to safety. Indeed the new messiah’s Responsibility programmes are designed to indoctrinate the sheeple with a sense that they are Responsible for the GFC that was imposed upon them. So they must assume Responsibility – I am sure there will be lots of ways to make them do this.

    Looked at in this way – Hyperinflation is not an ecomonic state, it is a strategy of war. It is a strategy of the Enemies of America that is going to be employed in order to provoke a Reaction that will best serve the Agenda of their war upon America.

    What other Reaction Scenarios could the GFC provoke? Count on it, these scenarios will already have been examined as possibilities by the Enemy; their probabilities will be qualtified and plans will be on the Board that will detail how to harvest these Reactions for the NWO Agenda.

    Whatever Response/s Americans work out for Americans, it must avoid the Intended (Most Desired) Reaction/s to the Engineered Crisis at all costs.

    This Intended Reaction (in terms of warfare) is part of the Enemy’s logistics of Ground.

    At present, Americans – sovereign, natural persons hold Ground. The new messiah will be enlisting all social and human resources to challenge this.

    Americans should be looking at how to enlist and pool their resources to meet this challenge as natural, sovereign persons.

    Americans fighting Americans over necessities of life is what I think will best serve the Agenda of the Enemy because it will better enable the new messiah to drive the majority of the sheeple into the cattle trains headed for the ‘peace and security’ of the NWO Trilateral conglomerate.

    “Never let the Enemy choose the battleground.” General George Patton (who was assassinated because he Figured It Out)

    Part of Response should be about self and community sufficiencies. And I don’t mean heading for the hills. American Ground is towns, farms, suburbs and neithbourhoods of cities. It is possible to generate your own power and power for neighbouring homes by creating your own photovoltaic cells. A solar generator that can run power for several homes can be made from these cells. The materials are common. It is possible to start a seed bank of hardy traditional (non GMO) varieties of seed and put backyards together – reinvent the commons. It is possible to remodel an airconditioner so that you can get water from air (think drip, drip, drip) – and run it off a homemade solar generator. Sand is a good water filter. It is possible for people with rooms to spare to rent them out to people who have been Foreclosed in exchange for work on community projects that serve the American Agenda. It is possible to join now any community groups like Neighbourhood Watch which has a liason to the local police. Men with combat experience who have taken the military oath to defend the Constitution – it is so important for you to get into these community groups. It is important to know names, the overt and covert chains of command and to know what is going down. It is important to know who may be the special agents within the local police. When the government is staging some kind of ‘exercise’ in your area I think life and death may well depend upon this knowledge; strategies will certainly depend upon it.

    Systema – the Russian Martial Arts for community that must Defend its nation is worth having a good look at. The Russians developed a lot of techniques against Bolshevism. (Which is properly what America is fighting today) Not all of Systema is fighting technique per se. But all are combat techniques. Some of the most important combat techniques are non fighting techniques. But having attended a few Systema classes, their martial techniques are very good. What Systema emphasizes is that a community that must Defend is a community that must cultivate the mind of combat. This is not the same thing as martial arts.

    A Grandmother, for example, can drive a station wagon filled with household items that hold the components for a photovoltaic solar generator through a checkpoint. There is absolutely no limit to the creative strategies that a nation which is determined to Defend can employ. Fear of combat,however, will certainly prevent communities from creating any of them.

    One of the hardest things for the sheeple to do, will be to get their heads around the fact – there is no security in the mindset of noncombat. The social reality is combat. They can choose to be good at it or they can choose to fail at it. They can not choose not to be in it.

    Americans who are focussed on reclaiming the Republic along with its Constitutional Government should have the advantage of a much higher and more inclusive focus than mere survival, but an important part of Response is community strategies for the pressure of hyperinflation – which is an act and strategy of war against the nation.

  2. Lynda Says:

    Another reason why it is such a good idea to secure the home and its yard (however) humble at all costs is because backyard self-sufficiency is key to the logistics of Ground.

    I remember going with my uncles (served in Patton’s 15th in WWII) to armaments shows when I was a kid. While the guys were off talking about ammo and stuff and places like the Ardenne, I would invariably wind up at the German / Nazi exhibits. What really caught my eye was how well made the German things were. Looking at those things was my first experience of real make and craft.

    Think about this people, here was a nation fighting a war on two fronts with its back to the wall and it could still turn out equipment like this. This really made me think. The uniforms esp. The fibers had a strength and texture that was unfamiliar to me (as I was familiar with synthetics). Just by the feel of it you knew that these fibers were warm in the winter and cool in the summer. What were they?

    I remember asking my uncles about this. Its nettle fibre they said. Germany was entirely self-sufficient during that war. Had to be. The World Jewish Congress declared war against Germany in 1933 – strict boycott had been called for. That was why the Germans started printing their own money – so it was a foregone conclusions that nations owned by the Rothschild bank and subsidiaries would attack Germany.

    Part of German national self-sufficiency was the harvest of the wild nettles – they spun the fibres. Must be an old European craft, because they had it in Scotland as well. (The royal thistle or urtica – the national emblem of Scotland) And I do seem to remember Scotland fought for hundreds of years to get their nation back. The Scottish Parliament sat for the first time in centuries – only recently.

    The stinging nettle grows wild and not much will restrain it. Not only is the nettle good as a food (it is a protein) – they put it in soups. It is good as a medicine – will neutralize uric acid conditions like gout. They wove the fibre – even 25 years later, the fabric was as fresh and wholesome as the day it was made. Because nothing corrupts urtica urens – it does not decompose, in fact winding sheets and shrouds were once made of the royal thistle because it does not decompose. And centuries later if the body is disinterred, even the bones have crumbled but the material remained.

    Hemp, bamboo are other plants that grow abundantly out of which fibres can be made.

    These are cottage industries – growing plants as fibres.

    And it is very important to grow food in the backyard – the strongest, most vital food plants. We know that civilian populations are being sprayed from the air. Maybe barium, maybe the oxide of arsenic. Who knows? Americans are being exterminated like pests with this stuff.

    Applying the principles of natural law, whatever is growing wild and strong on soils contaninated by these sprays, is a plant that is part of nature’s clean up crew. The food plants that can grow wild on that soil are plants that have the enzymes to break down and digest those toxins. (The toxins you are being sprayed with). Therefore, those are the plants that will be good for you. They can be grown in the bad yard and seeded to the local area.

    Why not try a backyard experiment – cordon off a specific area and create a toxic dump – throw in a cell phone and some petrol on that area, some batteries and dig it into the soil that is being sprayed from the air with ? – what is the cleanup crew that that nature sends? Some of it will be edible.

    My toxic dump is doing nettles (of course), cockroaches (they eat plastic), wild yams and a stripey pumpkin, red papaya, nasturians, prickly pear cactus. Interesting how the yellows and oranges prevail. Nothing else will grow unless I plant it and look after it. But if I have to look after it, it is not something which can grow and thrive in my specific toxic dump.

    The vegetarian dog. A homeless and sick dog scratched on my door one night. Obviously without a human. The dog has a liver condition. So. Excellent. This dog can live with me and become a vegetarian eating what is growing in my toxic dump. Guess what? The liver condition cleared up.

    Think about this.

  3. Steve Says:

    A few years ago, I tried to tell some friends and family the economy was headed for a crash. Most of them kept right on playing the banker’s game and living on credit.

    Now I find a lot more people willing to listen when I tell them the Federal Reserve is a fraud and our economy is being systematically looted and imploded to bring us down.

    I agree we need to get as independent as we can from the criminals running things!

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