The following are some snippets from the most recent issue of the International Forecaster.  For the full 18 page issue, please see subscription information below.

US MARKETS

The desperation of the cartel and of the sociopathic denizens that control its many diabolical components, which include the Fed, Wall Street, corporate America and our corrupt-beyond-belief government, has become almost palpable.  The Plunge Protection Team and the President's Working Group on Financial Markets must be doing double-overtime shifts judging by the laughable and nonsensical market action we continue to witness as all market logic is lost and as chartists and technicians are continually reamed by warped data that their market models could never have anticipated.  Welcome to the corporatist, fascist model of government and finance, which both Mussolini and Hitler promoted.  If you want some comedic entertainment, forget the Johnny Carson and Saturday Night Live reruns.  Just check the market action on your computer screen for some real rib ticklers and belly laughs.  The PPT and PWGF are scrambling madly, grasping at straws, in an attempt to fix what they have broken; apparently unaware that what has been broken is way beyond their ability to repair.  In the process, they are twisting, and causing massive imbalances in, the markets, morphing them beyond the point of recognition.  We're somewhere between "Alice in Wonderland" and "The Wizard of Oz" waiting to see what the Queen of Hearts and/or the Wicked Witch of the West have in store for us.  The Illuminati and their market-manipulating cartel have gone past the point of no return and are about to get vaporized by the greatest financial catastrophe of all time due to their rampant deceit, fraud and greed, which know no bounds, and which are about to take them down into fiat money hell in the most satisfying example of poetic justice ever conceived.  This is sooo good - you just can't make this stuff up!

We have witnessed humongous rate cuts by the Fed, blind auctions of scores of billions of liquidity (aka counterfeit money) in the form of short-term loans to insolvent banks and the granting of hundreds of billions of dollars of discount window loans secured by toxic waste that are being continually rolled over by the Fed, the ECB and the BOE while the credit-crunch continues unabated, inflation spirals and the dollar explodes and goes down in flames.  We have witnessed failed loan workout plans and failed SIV bailout plans while loan defaults continue to skyrocket and SIV derivative values continue to tank.  We have just witnessed an economic stimulus plan that is supposed to keep us out of a recession yet is only a quarter of the size of last year's home equity credit withdrawals which will be almost non-existent this year due to frozen home equity lines and quickly plummeting loan to value ratios.  Meanwhile, our economy continues to crash and burn and will continue to crash and burn even after the stimulus is applied.  We are about to witness a Warren Buffet muni-rescue that may provide some relief for the municipal bond market but not for the complex asset-backed derivative markets, which is where all the real problems lie.  While Buffet starts to bail out munis, values for asset-backed derivatives will continue to descend nonstop due to fraud, due to downgrading of bond insurers and due to a total lack of liquidity, which belies a complete lack of confidence in our farcical, Machiavellian financial system.  And now we are about to witness yet another homeowner bailout plan by six major banks to rescue a paltry number of mostly un-savable defaulted mortgages called "Project Lifeline."  These negotiations with what are likely to be upside down homeowners over 90 days in arrears will occur while loan defaults for virtually all classes of debt continue to annihilate bank balance sheets.

And now, all of a sudden, due to skyrocketing gold prices caused by all the failed solutions to all the above-mentioned problems, and due to virtually nonexistent and/or unavailable central bank gold hoards, we are about to witness the purported sale of the IMF gold - AGAIN!  Yes, the perpetual "IMF Gold Sales" are on once again, and nothing could be more bullish for gold!  Talk about treating only the symptoms and not the underlying diseases!!!  The last time the IMF did this was its 1978-1980 auctions of about 800 metric tonnes of gold, which coincided with the very sharpest part of the run-up in the greatest bull market for gold up to that point in time.  We are torn between telling Congress (as gold bugs) to go for it and telling the Congress (as citizens) that if the IMF can't operate at a profit or at least break even, they do not deserve to be bailed out by use of our or any other country's gold reserves.  NO MORE BAILOUTS!!!  Even the suggestion that our Congress give our gold to these scalawag carpetbaggers of unsuspecting third-world countries just really galls us.

Contact everyone in Congress and tell them that the IMF must either stop its corruption and its mismanagement of funds, or the US should withdraw from the IMF altogether.  In fact, let's give the World Bank and the BIS the heave-ho while we're at it and let's stop ruining and enslaving other less fortunate countries to pave the way for the New World Disorder.  As for their request for our gold to be sold to make up for their losses, tell the IMF that it can take its request and stick it where the sun don't shine.

The G-7's preliminary approval of this sale of 400 metric tonnes of gold, if implemented by US Congressional approval as required by law, will be just as ineffective as all the other moves of desperation enumerated above and will completely fail in its intended purpose - gold suppression.  And make no mistake about it, that is what this move is all about.  Note how the agreement is supposed to be finalized in April.  Gee, isn't that the month where the most active gold futures are now placed, some 300,000+ of them, to form the latest mountain of shorts for the cartel?  Hmm, isn't the peak of the gold season usually in the April to May time frame?  What a coincidence!  Note that a Morgan Stanley analyst stated: "This is arguably a good time to consider selling some of these gold holdings and investing the proceeds in financial securities with positive yields."  Yes, we'd say as about as good a time as it was in 1999 for Gordon Brown, the King of Fire-Sale Gold, to sell the same amount of gold at the bottom of the gold market.  After all, why wait until gold is north of 6,000 when you can sell it now for 900?  And did he say financial securities with a positive yield?  Did he mean AAA bonds that are down 30% or BBB bonds that are down 80%?  Or, did he mean stocks, which are still selling under their end of 2006 values across the board, or US treasuries with returns below the rate of inflation?  Are we in "Alice in Wonderland" now, or is this "The Wizard of Oz"?

If Congress approves of the sale, the first thing we want to see are the serial numbers on the gold bars that are used to complete the sale.  That way we can compare them with the ones that were either stolen by Rockefeller, or swapped, leased, hypothecated or otherwise encumbered and listed as "deep storage gold".  Or is it "deep-six 'd gold"?  Then of course we'd love to see who's at the auction.  Now wouldn't that tell some stories?  Will reprobate Rothschild be there to scarf it up like he did with the BoE's gold when Gordy-Baby had it sold for a song?  Or will reprobate Rockefeller show up and add some to his probable collection of stolen Fort Knox gold?

Or it could be the sovereign wealth funds whose dollar holdings have been doing a reenactment of "The Invisible Man."  It really doesn't matter who attends in the end.  The end result will be the same.  This is ensured by 15% to 20% hyper-stagflation, which is currently being built into the system as we write this issue of the IF.  This sale will provide the big dip that everyone has been waiting for.  Sovereign wealth funds will get the chance to add big chunks to their holdings on the cheap.

Everyone who missed the last several rallies because they were afraid of the Big Bad Cartel Wolf will get the chance they were waiting for.  The jewelers in India and the Middle East will be drooling, as will investors and speculators.  The gold will be bought up quicker than you can say, "moon shot."  Then everyone will be in, and there will be nothing left for gold to do but to start the countdown to ignition as it prepares for a launch into interstellar space!  Of course, those who wait for the IMF sales may be very disappointed in the highly likely event that the huge mountains of CDS and IRS derivatives implode, official inflation hits 8 to 9 percent and the Dow gets cut in half along with bonds while interest rates soar into double digits, bank runs start everywhere and gold takes out 2000.  Do you really want to have to say: "Shucks, I missed it again!"?

...

THE INTERNATIONAL FORECASTER

WEDNESDAY  021308(4)_IF

P. O. Box 510518, Punta Gorda, FL 33951-0518

An international financial, economic, political and social commentary.

Published and Edited by: Bob Chapman

E-Mail Addresses:

international_forecaster@yahoo.com

if_distctr@yahoo.com

CHECK OUT OUR WEBSITE

www.theinternationalforecaster.com

RADIO APPEARANCES:

To check out all of our radio appearances click on this link below:

http://www.theinternationalforecaster.com/radio.php