Bob Chapman on RBN Radio 28 July 2009
The system is doomed there a 2.4 quadrillion black hole Bob Chapman the international forecaster gives it 3 to 5 years before the whole system collapses buy silver and gold bullion to save your belongings
Sunday, July 19, 2009
Due to the fact that Goldman Sachs is currently the favorite of Washington they are raking in massive profits during a time when most banks and brokerage firms are struggling for survival.
Due to a very successful second quarter, Goldman has set aside $226,156 per employee in compensation – a 75% increase per employee. That means annualized compensation could be $1 million per employee for the year. We find this of great interest inasmuch as the recently converted bank received a $10 billion taxpayer bailout via Goldman’s connections in Washington. They also received a myriad of benefits from several other government schemes over the past two years. It is nice to know that in part American taxpayers made this possible while unemployment is running on a U6 basis at 20.5%, and Americans are losing their homes by the millions.
Pay surged 75% in the second quarter and compensation and benefits costs were $6.65 billion, up 37% from the equivalent quarter in 2008.
The immense profits of 33% were mainly due to trading profits of $2.7 billion. Goldman made up 24% of the Black Box program. Program trading made up 73% of all NYSE trading.
“The Fed and the Treasury had hundreds of billions of dollars for banking, Wall Street and insurance companies, but they couldn’t allow borrowers, facing foreclosure, a break. That would have staved off two million foreclosures and preserved $300 billion in equity. Congress couldn’t help average Americans, only the rich. We are in the greatest financial crisis since the early 1870s or the 1930s. These people have ravaged the financial and economic world and they are still in complete control of the system. That is because they have bought Congress and they have created a revolving door between NYC and Washington. Last year, banking, securities and investment firms gave $154.9 million in political payoffs. Real estate interests stuffed $136.7 million into politician’s pockets; commercial banks gave $37.1 million and hedge funds $16.7 million, for a total of $345.4 million. This is why campaign contributions have to end along with lobbying. When are Americans going to wake up to what is being done to them?
It is only a matter of when before there will be insufficient buyers of Treasuries to fund bond issues. We believe this has previously happened from time to time and that buying by the Fed from offshore accounts has held the market up. This we believe is why the Fed doesn’t want an audit. When foreign central banks stop buying, the Fed will monetize more and more as they are currently doing. They will be buying $3 trillion worth of Treasuries, Agencies and CDO toxic waste from banks over the next three months.
On June 5th, we saw the 2-year and 10-year Treasury yields spike as the Fed lost control of the market. We noted the actions at that time. It won’t be long before most long dated paper, that is over 5 years, will have to be monetized in a very big way. That also means interest rates will continue to move higher. We believe the treasury will be in the market for $1.2 to $1.5 trillion. That means the Fed may have to buy $600 billion to $1 trillion in Treasuries. They have already committed for $300 billion. It is hard to know exactly what this private corporation is up to because much of what they do is in secret. As rates rise it becomes very difficult to finance mortgages. At a 5.5% mortgage rate, 80% of pending and future mortgages cannot be consummated.”