Laura Picchi

An excerpt from Bob Chapman's weekly publication

http://www.theinternationalforecaster.com/International_Forecaster_Weekly/A_Nation_Exclusively_Run_For_Corporate_Interests

The welfare state rumbles on in corporate america, debts become more unpayable daily, pondering the metals correction, US Treasury near legal debt limit, governments extend the time lines of debt, legal actions in Madoff case, big fines to settle fraud case. Red flags all over Europe

(...)The economy in the US and in many other countries is being run by and for major corporate interests. It is called corporatist fascism. Not many truthfully call it that, but that is what it is. We have government paid for and controlled by wealthy corporatist interest. In America you have $14 trillion in short-term debt and $105 billion in long-term commitments. Then there is the off budget items, such as wars and occupations that adds considerably to this debt, all attuned to keep the welfare state running. Both parties refuse to cut much of anything, although the Republicans say they will. We are skeptical after watching the tax bill become an $862 billion pork stimulus package.

(..) The Fed may control the short end of the Treasury bond market, but it has minor influence on the 10-year notes and 30-year bonds.

(..)At the same time we see red flags all over Europe. It is pointed out that in Europe, Greece is uncompetitive and has a sodden public sector; that Ireland borrowed too much and was moving more to a welfare state; that Belgium was a house truly divided with financial problems; that Portugal’s economy lagged like that of Greece and has similar major budget deficits, and that Spain doesn’t have a diverse enough economy and was literally destroyed by one interest rate fits all.

(...) As of this writing gold has fallen about $100, and silver some $3.00. Support for gold lies anywhere between $1,280 and $1,340. Many are disappointed that both metals corrected, which is natural, but they are more upset that the correction was deliberately man-made. (...) We find that ludicrous with another $2.5 trillion being jammed into the economy. Even another deflationary down leg in real estate would not offset such spending, which follows $2.5 trillion spent under QE1 plus stimulus.(..)