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  1. #1

    Default Train Wreck of the Week


    Train Wreck of the Week
    By Bob Chapman

    May 29 2005

    The elitists think we are dumb and they could care less what we
    think. The neocon version of democracy is a sham and a cover, which
    they hope lends an aura of legitimacy to what they are doing. The
    media, of course, trumpets the triumph of this so-called democracy
    when in fact it harks back to the 1930's Triumph of the Will.

    In Afghanistan we are told Hamid Karzai was freely elected, but the
    media leaves out the fact he was a paid consultant for Uocal, a CIA
    operative and a front-man for elitist interests.

    In Palestine Mohammad Abbas was elected with little support from the
    people. He is another stooge for US, UK and Israeli interests. He
    sits in power as Palestine's real leader Marwan Barghonti sits in an
    Israeli jail.

    In Iraq we have Iyad Allawi who has been an asset of MI6 and the CIA
    since the 1980s, another stooge for elitist interests.

    All three elections were rigged just like George W. Bush's last two
    elections to become president. A consistent pattern of rigged
    elections. It is not the voting that is democracy; it is the
    counting. In Iraq it took a week or more to count the votes in
    secrecy of course. All was well though because the UN lent its veneer
    of legitimacy. As you can see, all is not as it seems. There is no
    question that there is widespread voter fraud in every election in
    the US and as well in foreign elections in which the elitists have a

    In the real estate market the question is who will get the ax first.
    Will it be San Diego, Los Angeles or perhaps Phoenix? Let's take a
    shot at San Diego where we once lived in the hamlet of La Jolla. The
    California Association of Realtors Affordability Index recently put
    San Diego affordability at 10%, meaning that only the 10% of San
    Diego wage earners could afford to buy a median priced home. First-
    time buyers are just about locked out of the market. Other buyers are
    stretched to the financial limit. Just five years ago the 30-year
    fixed was 7.91%, today it is 5.71% and ARMS are 50% cheaper. If the
    economy was strengthening it would be different, but the only
    strength in the economy is real estate itself. Over 75% of San Diego
    Mortgages are some form of ARMS. Twenty-five percent do not make a
    down payment and mortgages are being written for as much as 125% loan-
    to-value ration. Even if interest rates remained the same you will
    have a topping in the market and some correction. We see rates moving
    up. How much is dependent on the ability to fund the current account
    deficit and reduce government's fiscal budget deficit.

    If the San Diego market would revert to mean prices, it would fall by
    50% and that is only to the mean. They could and would likely
    overshoot the mean. Rising mortgage rates should decrease housing
    demand as more and more buyers are priced out of the market or cannot

    Foreclosures would follow and that will feed upon itself. This is the
    third real estate bubble in Southern California in 35 years, so we
    know how it works having lived there for 36 years. This boom is
    little different than the stock market bubble in 2000, except you
    will find real estate is relatively illiquid in a falling market.
    This time Americans are way in over their heads in debt and over 50%
    of loans are ARMs and 50% of loans are sub-par. You talk about a
    dog's breakfast this is it. Households are carrying overall debts
    equal to 80% of their annual disposable income. Yes, whom the gods
    will destroy, they first make mad. A major question is, if individual
    bankruptcies were close to 10 million over the past five years
    could they double or triple over the next five years? The answer, of
    course, is yes.

    We are wondering if the pressure on China to revalue is just a ploy
    and part of the propaganda crusade to blame America's financial and
    economic woes on China.

    If China were to revalue there would be some nasty consequences.
    Interest rates would rise as would mortgages. The stock, bond and
    real estate markets would fall and unemployment would increase. The
    budget deficit would grow larger but the current account deficit
    would ease somewhat. Thus, you say to yourself, isn't it better for
    the Fed and the neocons to postpone the inevitable and let the yuan
    remain pegged. You also have to remember China conscientiously
    enabled the US government to continue its fiscal irresponsibility.
    Could China have made a deal with the neocons? They have and we will
    find out in time. Last year China bought $200 billion of dollar
    assets. This year they have sold $20 billion in treasuries net in the
    first quarter. Up until the end of last year China and Japan carried
    the US Treasury. Incidentally, Japan has been a net seller of US
    Treasuries by some $30 billion in the first quarter. Keeping the
    Treasury solvent has been Caribbean offshore accounts, which the
    establishment tells us are hedge funds. We believe it is the US
    Treasury and the Fed buying our own paper. Thus, the administration
    just might be making noises about China to keep American
    manufacturers happy what there are left of them. No one in
    Washington wants to face a depression in office, so they will float
    this game as long as possible as Americans have there wealth stolen
    by real inflation. How can you protect yourself? Easy, be in gold
    related assets. George and the neocons' puppet dictator in Uzbekistan
    were responsible for the murder of 600 Muslims last week. This is a
    bloodthirsty, brutal, corrupt dictatorship, which George Bush has
    chosen for our ally. His forces fired on peaceful demonstrators,
    including women and children by helicopter, as trigger-happy militia
    plowed through the crowd three times randomly murdering people who
    could no longer tolerate the vileness of George W. Bush's friends.
    This is democracy neocon style. This is the same dictator who stashed
    his gold at the Bank of England, whose daughter was caught with a
    plane-load of gold in Moscow and who approves of boiling people alive.

    Eighty-percent of the citizens of Uzbekistan are impoverished with no
    quality controls on food or products. Healthcare is being privatized
    with the careful guidance of the US government. You can open a
    business only by bribing public officials. It is a society being run
    by criminals and it stands 114th out 144 in the world index of
    corruption. These are our new friends. The country exports gold and
    cotton and lives on handouts from the US and Europe. Ninety-percent
    of the country is desert. These are our partners in crime.

    Fitch has downgraded the senior unsecured ratings of GM and GMAC to
    BB+ from BBB-. The move reflects the continuing decline in GM's North
    American sales of key mid-sized and large SUV products, increasing
    product and price competition in the larger pickup market, and their
    affect on productivity. They said the rating for GM remains negative.

  2. #2

    Default Re: Train Wreck of the Week

    Bill Hicks on Democracy said it best;

    "I'm going to vote for the puppet on the left"
    "Well I'm going to vote for the puppet on the right"
    "But they're both controlled by the same people"
    "SHUT UP and enjoy democracy"

    "You are free to do as we tell you!"
    Whether you think you can, or think you can't; you are right.

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