By Bob Chapman, The International Forecaster (reposted on DProgram.net)
Bad news for the Illuminists. The US has lost control over Japan with the new election. They are moving away from fascism toward socialism and will not be buying dollar denominated securities in the future.
China has just reneged on derivatives and is dumping $25 to $100 billion a month, plus buying anything denominated in US dollars, such as commodities. France's Sarkozy wants one reserve currency and not the dollar. Sarkozy and Germany's Ms. Merkle want large banks broken up into much smaller units. These developments have the Illuminists tearing their hair out.
We have three weeks left of monetization and we know if the Fed doesn't continue to monetize then the bottom will fall out of the world economy.
State owned Chinese firms have defaulted on derivatives as Goldman Sachs, Morgan Stanley, JP Morgan Chase and UBS refuse to discuss the matter. The Chinese figure the US is printing money madly to bailout bankrupt institutions, which is essentially defaulting on dollar obligations. The Chinese figure why should we honor derivative losses with the crooks. Let them go to the Fed or the Treasury and let the American taxpayer foot the bill. After this episode the dollar should go into the tank.
The employment component of the Chicago PMI rose to 38.7 from 35.3 in July. Prices paid rose to 50 from 35.0 and new orders jumped to 52.5 from 48.0. Production rose to 52.9 from 43.3. That was a mere 43% increase in prices paid in one month or over 7,300% annualized. This is why you need gold – American Zimbabwism is on the way.
However, rather than voting on HR 1207 as a standalone bill, many in Congress hope to roll it into the comprehensive regulatory reform package recently proposed by the White House.
This reform package grants new, more comprehensive powers to the Fed and strengthens the government's control over our economy. C4L and other friends of liberty stand in opposition to this proposal, as well as any other attempt to convert this historic movement for transparency into yet another rubber-stamping of politics as usual.
It is imperative that Audit the Fed come before the House and Senate on its own merits.