The Crony Capitalist Bailout Nation! Pt 4 of 5 Absolute MUST READ! He Describes The Current Economic Scenario PERFECTLY! Bravo... Brilliantly Written!

The International Forecast
The Crony Capitalist Bailout Nation
written by Bob Chapman
Saturday August 8, 2009

But it gets even better. We are told by our government bean counters that they think it will take about $24 trillion to bail out the so-called too-big-to-fail banks. So let's have some fun with this money. In the private sector, we have $13.8 trillion in household debt, $11.1 trillion in business debt, and $17.2 trillion in debts of financial institutions. We could take the $24 trillion and totally pay off all household and business debts.

That means the financial institutions would collect all that money and use it to pay off their debts as well. The whole system could have been de-leveraged and the derivatives canceled by regulators. Would we have hyperinflation as a result of all this bailing out? Of course! And some deflation as well. But would you rather go into hyperinflation debt free, or in hock up to your ears? You're going to get hyperinflation whether you get bailed, or the banks get bailed.

And if you get bailed, the banks automatically get bailed. And for those banks that were totally careless, they would get to fail and be absorbed by the thousands of good banks who would jump at the chance. Large amounts of pain are being inflicted on you needlessly while the criminal Illuminati and their nefarious bankster-gangsters get bailed out, thus sucking all your blood out like a vampire squid wrapped around the face of humanity, as Goldman Sachs was recently described by Matt Taibbi.

This is why all the efforts to cure defaulted loans have been half-hearted at best, and non-existent at worst. The Illuminati know that this is the best cure for the sheople, so we most certainly can not have that. Else, how could they form their Orwellian one world police state of feudality and become lords of the universe over their future serfs? This whole bailout bonanza for financial criminals is the smoking gun. This is irrefutable evidence that the leaders of corporate America, Wall Street and Goldman Sachs South are venomous traitors who want to enslave you and put you and your posterity into bondage forever!

The percentage of occupied living units in the US that were owned as opposed to being rented was about 62% in 1960. All the shenanigans with Fannie and Freddie and the loosening of loan standards so that anyone breathing could have a mortgage has caused that home ownership percentage to fluctuate in an upward trend with the ebbs and flows of various real estate bubbles since that time, with a peak of almost 69% in 2005. If we were to trend back to 1960's 62% ownership, some five million owners would have to become renters again. We see this as inevitable, and it may get much worse as we move into the most disastrous state of the US economy in our nation's entire history.

With long-term unemployment at over 20%, which could double if the Illuminati have their way with the ridiculous bailouts of bankster-gangsters, and with hyperinflation on its way, we could see the percentage of home ownership easily drop to 55%, or even less. We also see prices for housing potentially reverting back to the levels that existed at the beginning of the 1990's, which is before profligate expansion of money and credit by the Fed began in earnest as the totally criminal Clinton Administration got underway in 1993. That wild-eyed monetary expansion by the Fed has distorted asset values across the board, and has grown worse with time to cover over the destruction of our economy via free trade, globalization, off-shoring, outsourcing and both legal and illegal immigration.

Foreclosures, coupled with much higher interest rates on account of hyperinflation and elevated risk, could potentially become bad enough to reduce the median house price to 120,000 as it was in 1991, when the real estate market was partly cleansed. The deflation could get even worse as our government fires up the subprime market for another round of rampant fraud which could extend defaults even beyond 2012. Then there is the deflation in the aftermath of hyperinflation. It is just too terrible to even contemplate where this whole thing could go.

In our last issue, we reported that trailing P/E ratios using GAAP principals for calculating earnings were really 761, not the reported 24 or so that was obtained without taking write-downs into account. With a trailing P/E ratio of 761, the stock markets would have little, if any, value. Again, it is too ugly to even contemplate. The next leg down in this bear market is going to be a killer.