In An Unsustainable System, A Warning of Collapse

Bob Chapman
International Forecaster
Aug 25, 2011

Congress

We do not believe that Americans, particularly elderly Americans, understand what the elitists are up to in regard to Social Security and Medicare. The Council on Foreign Relations and the Peterson Foundation has for years been working on plans to terminate Social Security and Medicare. Cuts in these paid for programs were impossible to get through Congress. Thus, the ruse was born of getting around Congress. A flash issue was raised regarding a short-term debt extension that could have been passed in 15 minutes that demanded budget cuts for passage. In that process the Obama Enabling Act was formulated, patterned on the German Enabling Act passed in 1933 by Adolph Hitler. It allows a 12-person panel to bypass Congress regarding legislation. The changes are made in this committee and cannot be debated or amended and must be voted on via a straight up and down majority vote. While this was transpiring, as part of the plot, Standard and Poor’s downgraded the US debt rating based upon there not being large enough cuts in what Congress likes to call entitlements, which are not entitlements, but paid for benefits. The reason for the cuts is that both benefits trusts are broke, all the funds having been spent on other things over the years. SP said that if major cuts are not made that they would cut the US debt rating again in November. Thus, you can understand the framework and what the elitists have paid the committee and Congress to do. The committee takes all the heat upon passage and Congress generally gets off the hook.

Needless to say, the controlled mainstream media reports on none of this. That a chained CPI is to be employed – is little discussed. The cost of living adjustment, or COLA, changes as CPI changes. The problem is the CPI, currently up 3.6%, is a bogus statistic. Real inflation based on the 1980 model is up 11.2%. As you probably remember there has been no COLA upward adjustments for two years and another is being considered this month for next year. It will be interesting to see what they come up with – probably no change. The COLA based on CPI isn’t bad enough now they want to chain-weight it. These changes won’t take place for a few months so there is time for Americans to complain to all of the members of the House and Senate regarding this rape of both benefits that they have paid for. If Congress wants to cut they can cut the military budget. What the powers behind government want to do is make the nations elderly; they call them useless eaters, carry the burden, and force them to live like animals.

This chained CPI will increase even less than the bogus CPI, or some 0.3% less on average than the CPI-W, or the Consumer Price Index for urban wageworkers, and clerical workers, which is what COLA really is. As you can see retired Americans have been cheated by government for years and now they want to cheat them even more leaving many of the elderly destitute in order to finance more wars. Looting Social Security provides revenue to be wasted elsewhere.

Politicians believe their constituents won’t know what they are up too, but they are mistaken. Many of them will be kicked out of Congress for betraying the elderly of benefits that they paid for over a lifetime of work. The cuts would cost retirees $100 billion and SP wants even further cuts. This is going to put seniors into poverty, especially the disabled. The proposal would cut more at 9.5%, almost 10%, versus 4% at 75. These politicians are calculated to bring early death to the aging. As this travesty takes place, Medicare benefits would be reduced by another $100 billion. In 2014, we will have the Obama death panels, where a panel will decide who will be treated and who will be allowed to die. Soylent Green comes to mind, this travesty, planned by elitists to transfer funds and get rid of useless eaters, was fully aided by America’s controlled media, which misled all readers and listeners. The program was formulated the by ex-president of the Council on Foreign Relation’s billionaire Pete Peterson who lied about the entire program. The chained CPI is a scam just as the CPI is. All of you men and women in your 40s and 50s will have to make up the loss unless you want to see granny and grandpa starve to death. AARP, which is in part funded by the federal government, naturally came out in favor of cuts for its paying members. That proves once and for all what a useless organization AARP really is. They tried to play both sides of the issue. What this really amounts to is a tax increase on those who can least afford it. What really concerns the aged is that the new tax increase is already in place. The question is will the unconstitutional illegal, “Obama Enabling Group,” increase the burden on the aged even more?

It should be noted that the elite members of the “Obama Enabling Group” are all part of the Council on Foreign Relations, Trilateral Commission and Bilderberg Groups. They will do as the illuminists tell them to do. Their control companies won’t share in the tax increases because they are immune and exempt. We have yet to see anyone file a lawsuit challenging the unconstitutional law that created this group of enablers. As we pointed out before this group has been bought and paid for via $64.5 million in campaign payoffs. The biggest contributors were legal firms for more than $31 million and Wall Street threw in more than $11 million. These are the people who in part, control our government – JPMorgan Chase, Goldman Sachs, Citigroup and Bank of America. Your commentaries and votes mean very little to these people.

This is August and Europe is on vacation as the European Union and the euro zone fall apart. Mrs. Merkel and Mr. Sarkozy had a meeting that accomplished nothing. It was supposed to be a cover for all of Europe’s bureaucrats who were enjoying themselves while their union burned.

The European Central Bank, the ECB, continues to finance the insolvent euro zone participants by purchasing their bonds. The most recent recipients have been Italy and Spain. The total is now approaching some $900 billion. The bonds are virtually worthless and other members have to pay for these interventions. In addition another $500 billion has been lent to these problem countries. The EFSF, the European Financial Stability Fund, the method for loans is supposed to terminate in 15 months, so the permanent solution is supposed to be the ESM, the European Stability Mechanism, which can lend $700 billion. All these loan packages are guaranteed by euro zone members and the citizens of the remaining 11 countries. This commitment guarantees a AAA rating, which we see as dubious at best. All these commitments have forced the lenders in the case of Greece to now demand collateral on just about everything the Greek government owns. We have said from the beginning Greece should just default but that is not what the bankers and other solvent nations want. They want to own the country and enslave its inhabitants. At the same time many of the lenders are only in slightly better shape then the sovereigns they are lending too. That means the stronger members are under increased pressure, as their credit ratings and finances are pushed to the limit. In addition a number of nations not within the euro zone, such as England and Norway have no intention of getting involved in the ESM. There is absolutely no question that the euro zone cannot survive under these circumstances.

  • A d v e r t i s e m e n t

We still believe the euro zone doesn’t fully understand their problem. It was 1-1/2 years ago we predicted that the bill would total $4 trillion. A few months ago we raised that to $4 to $6 trillion, as Germany raided their estimate from $1 to $3.5 trillion and the EU support mechanism raided their estimate to $2.8 trillion. The bottom line is none of the estimates are payable, but the desire for world government is so great that the Illuminists are wiling to destroy the system to accomplish that. Finance ministers call for greater commitments, but where will the funds come from? Sooner or later these one-worlders are going to discover that if they keep pushing, the system it will crash and burn.

In addition to the sovereign problems European banks are exposed for $700 billion in just the debt of Greece, Ireland and Portugal. If Spain, Italy and Belgium are included the exposure grows to $2.8 trillion and that is just the bank exposure. Thus sovereign and bank exposure is $7 to $8 trillion. These kinds of numbers make you realize that all of Europe is broke and all the banks are going to go bankrupt as well as the countries, including Germany. We often wonder whether the European condition wasn’t a Anglo-American trap. We will see in time. Perhaps the one interest rate fits all was the trap, as we believed it was from the beginning. This one interest rate supposedly eliminated risk, when in fact as you can see it heightened risk. The euro could not eliminate that risk, because the six nations over lent and over expanded. No one cared about debt repayment because supposedly the euro protected everyone from that, and as we have found out the euro and sovereign commitment was not adequate protection. Quite frankly Germany was with its AAA rating, and financial success was supposed to carry everyone. It has now been proven they cannot and the German people are shouting we have had enough of this. It has to be stopped now. We will take our losses, dump the euro and return to our beloved Deutsche Mark.

If debt is restructured at today’s recognized level for the problem countries, even a 50% default would wipe all 17 countries except Germany. 1-1/2 years ago Greece made a 50% default offer to Germany, which rejected it. If they had accepted it these nations could have been dealt with over a long period of time avoiding a euro collapse, but they were not smart enough to envision such a solution, because they really didn’t grasp the enormity of the problem and where it would take them. They understand now but it is too late. If you think the foregoing is overwhelming all those structured securities called CDS and MBS, bonds containing mortgages. They were holding $2 trillion worth and they are probably still holding them. They are carried at par and are worth at best $0.30 on the dollar. Banks do not have sufficient capital to cover these losses and we do not believe the public in Europe will cover these bank losses. Even the IMF says the banks have not recognized these losses. Bank stress tests are a joke, pabulum for the masses. Italy has 30 problem banks, but they lent conservatively, have high levels of deposits and very small leverage. If they are in trouble you can imagine what the banks in the other countries look like. How can governments recapitalize banks when the governments are broke? In the case of Greece a 50% write off would cost the ECB, the 17-euro zone country citizens, $70 billion, plus what banks and others are holding. The sovereigns are buried just as the banks are. The ECB has paid in capital of $7.4 billion. Euro zone central banks have $1.4 trillion in capital. How can anyone believe they can fund losses of $7 trillion? Talk about contagion. The word should be catastrophe.

As we have often said, the problem and debt has only been extended. All the debt is unpayable. Interest rates and bond yields of troubled nations are such that debt cannot be repaid. How can anyone have confidence in a broken system? Unsustainable is the operative word. There is no political courage to end all this because all of the key figures and many others are controlled by the Illuminists, who want world government. They will hold out until the system has collapsed, and hope they can save themselves. That is why people worldwide have to prepare for what is coming. Europe’s financial collapse will be the catalyst that will cause all other nations to fall. That is why it is so very important that all of your investable assets be invested in gold and silver, coins, bullion and shares.

 






 
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49 Responses to “In An Unsustainable System, A Warning of Collapse”

  1. “All the debt is unpayable.” This is true as long as we allow the current banker-designed, and seriously defective, system of money issuance to persist. Most people don’t seem to be able to grasp that it is an artificial system, not something inherent in nature. If they were “big” enough to think beyond immediate personal advantage, they could bring about the installation of an honest and realistic system, whose effect would be to benefit everyone (including the insecure “climbers” whose obsession is materially keeping “ahead” of their neighbors.

  2. AARP is a gang of shysters profiteering off old people.

  3. “The changes are made in this committee and cannot be debated or amended and must be voted on via a straight up and down majority vote.”

    This reminds me of Fareed Zakariah’s statements, to the effect that the US was gridlocked by debate, unlike parliamentary systems.

  4. Hot chicks in the truth movement. Nomi Prins spilled the beans on Jesse Ventura’s Wall Street episode (my personal favorite).

  5. many of them will be kicked out of Congress….and a new batch of traitors will take their place.

    • With the compliance of the electorate, of course.

      • of course.

  6. Desperate men will do desperate things. Maybe once some retirees are starving to death because their government robbed them of their own SS money, maybe we’ll see some action.

    A 70 y/o man doesn’t have much to lose and if he’s starving to death, maybe he’ll target an elitist? I sure as hell hope so.

    • Scope, rifle. Rockefeller.

  7. Pay off all of your debts now while your money still exists would be my advice. I am completely debt free and realize that most of this stuff is completely out of my hands. Rather than worry about catastrophe, I sleep well at night, knowing that I owe nothing to noone and that my Lord will protect me. Whatever happens, happens according to the will of the sovereign Creator whose name is I Am and consists of three persons – the Father, Son and Holy Spirit.

    I am able to live in peace. Perhaps the stock market will fall. Perhaps not. Pay your debts so that no matter what happens you will have peace. Right now, if you have money, most of it is still there for now at least. You may have even made some. Truth be told, all money belongs to God, and if it is His will that it is worth less or nothing, then as long as you owe nothing, what difference does it make? Live for God, not money, or even yourself. Let God’s plan and design for you work itself out.

    • My advice would be open the fuckin book and get serious about Christ.

      • Most definitely, at least those who are so inclined.
        The others, well, they gonna have to make out on their own,
        and we’re not to waste too much time on ‘em.
        Something on the order of: “Casting pearls before swine”.

  8. Governments always prey on the weak and infirm. They are like wolves. The only way to get rid of them is to look them long in the eye and they will back off. They don’t hunt alone but go after their prey in noisy packs called a congress.

    • That’s another benefit to them for all the wars – killing off our young adults.

  9. Bob and InfoWars staff, would you please proof-read these tremendously important articles before publishing. I spotted well over a dozen errors including major word-choice errors including “raided” instead of “raised” three times in the same paragraph. I’m not a trained editor, otherwise I would volunteer, but I’m sure someone out there would be willing to give some of these a 30-minute scrub for basic grammatical, spelling, and wording checks. I appreciate all you do to keep us informed. I also use the hyperlink references in lieu of footnotes that most articles here contain. This article contains no supporting documentation, which, in an editorial piece is not required but is recommended. Feel free to contact me if no one else is available for proofing.

    • instead of posting here call them. (512) 291-5750.

    • HIRE THIS GUY.

    • I made a comment yesterday about the poor quality of editing. I think PJW
      needs help. Most people don’t realize how much work that editing and writing is.

      • I think the idea is to rapidly post one article after another, and to take down the “old” one, before it can be considered properly.

  10. The CFR is an NGO, primarily involved with “foreign relations!

    What the F’k do they have to do with how our government deals with US citizens, unless We The People are now foreigners in our own country?

    What will they try next, putting China in charge of family planning and health care for the elderly here in the US?

    I guess since China owns our debt, they will be granted the power to oversee our indebted programs such as Social Security and health care, afterall it’s their vested interest. Realizing of course, you do get what you pay for when it comes to the NWO, from wars in the middle east and Libya, to stock market crashes and depressions. This is what most American fail to understand, that we get what the NWO pays for and then buys, no two ways about it. As far as the citizenrey is concerned, our daily economics appears unrealted to these deals and that is a huge illusion and why nothing makes any sense to the average tax paying Joe. The real truth is, you’ve been sold like chickens and pigs to a foreign market and that’s why a foreign market(CFR) CEO’s are running these things. In a nut shell, your retirement and health care have been off shored and China owns it – you!!!

    • Id you will follow the money trail of debt and slice the cake according to that, you will be shocked to suddenly understand why it made no sense until you finally understood this.

    • As the biggest vested holder of the debt, China has more to say about it than anyone else. Think about it.

    • Because China holds the debt, they own America and America is now a Chinese province, governed by global economic laws. China is now the primary holder and according to global economic laws WE MUST DO AS THEY SAY and the CFR negotiates on their behalf, else WWlll will be devised to equalize this huge debt.

    • Does it makes sense now?

    • We are foreigners in our own country! The Trading With The Enemies Act of 1917 was amended in 1934 to include all Americans as the enemies of the US government. We have been ruled under Emergency Government since March 9, 1933 when the Constitution was suspended. A nation’s flag is a statement of JURISDICTION. Every embassy flies their own national flag and all business within each embassy is conducted under the JURISDICTION of that nation. Every flag in all government buildings is the MILITARY BANNER OF THE EXECUTIVE. The real flag that represents Constitutional Jurisdiction hangs, pointing at the ground (Law of the Land), behind the Speaker of The House of Representatives. The Banner of The Executive hangs upon a pole and points to the horizon (Law of The Seas) and is bordered in gold fringe on three sides. When you go to municipal court to fight your speeding ticket you see the Banner of The Executive behind the judge. The banner puts you on notice that you are in Admiralty Jurisdiction and your Constitution has NO jurisdiction – You are in a MILITARY TRIBUNAL!

    • It’s all an evil facade. China owns nothing – everything they have was given
      to them by the NWO elite and can be taken away.

  11. When this council of twelve gets done, the USA could very well be on its way towards a third world standard of living for a lot of people.

    The point of no return has come and gone and I don’t see a way to turn any of this around for the better.

  12. Thank you Bob Chapman…for the article of ‘REALITY CHECK’.
    Not very pleasant to consider…but seems to be honest enough.

  13. All “the elite” have to do is help make Ron Paul president.

    Not only will he cut the military, but he’ll phase out Social Security and Medicare, since both are unconstitutional federal programs.

    So on this issue, Ron Paul and “”the elite” are sympatico.

    However “the elite” want to wage war against all of Israels enemies.

    • And that’s what makes me not trust RP. I hate to tell yall but I think a civil
      war is inevitable, even with RP as president. Ron knows that shutting down
      SSI will cause a civil war – then he can be dictator!! Nobody mentions the nursing
      homes. If SSI is shut down, the nursing homes will close and throw elderly
      in the streets. And RP can’t wait boys and girls.

      • Ron Paul did not say he was going to throw anyone in the street. What he said was he would use the money wasted on foreign countries for war and whatever else to take care of the people dependent on the system while working on a way to allow the younger people to opt out of the system.

        Presently we are all being ripped off. While we continue paying into the system we are and will get less benefits from it, even though the amount paid in never changes or goes up, and on top of it you will be forced to buy health insurance. Those programs have been robbed and are broke. there is no lock box with our money in it. Like the article stated the elderly aren’t getting a cost of living increase because the government keeps finagling the CPI numbers and they have been doing that for decades. Ron Paul has railed on about the CPI numbers not accurately reflecting actual inflation and the elderly, poor and middle class getting robbed for years.

        What you said is not true.

        • You don’t listen very well, do you?? RP has said many times about
          dumping SSI and medicare. He’s not worried about it and neither
          is AJ. Why?? Because they are wealthy. If you notice, only the wealthy
          people want to abolish SSI – and they know that if SSI is abolished,
          they’ll still be stealing the money from our checks!! It’s all a scam.

    • Funny how it all ends up.

  14. Oh for petes’ Sake its only numbers on a page! Get out the match burn it all and start fresh! nice new papaer with zeros everywhere and prices and wages that are reasonable. You will never get me to believe that there isnt enough brains in this world; or, that they cant sit down together and come up with a base financial system that maintains soverignty for all nations, and provides a structured monetary/compensation system, that covers all the bases. The time for playing “he who has the most toys wins,” is over. To force anyone in the world to work too hard for too little is long past. Turth be told Complete control of the financial system is called for Private central banks clearly cannot accomplish the task without extremely stringent government oversight. SO create a better system and PUSH THE DAMN RESTART BUTTON ALREADY!

    • you sleep. they don’t want anything ‘for all nations’ except death and slavery. obviously a newby or a FED.

      • Or just incredibly foolish.

  15. All values are tentative. Most beliefs are socially manufactured and institutionally supported to fit the age. When there was a need for labor to bring about the age of industry, there were certain values that were constructed and supported by social institutions such as the church and legal system to make that happen as needed. In the age of feudalism and slavery, the social institutions supported other value systems, slaves were housed, fed, clothed etc. In the age of industry those values changed to support yourself with a wage that couldn’t sustain anyone even with the children working. But this was also supported by the social institutions mentioned. Now this is an almost post-industrial age and there are new values again supported…there is a shift that is happening as they are being presented to the generation they are to effect. There isn’t the need for people really. What to do? Well Social Security may not be keeping up with the cost of living, but it will be there for a certain generation, my parents certainly. The latter generations will have a problem and some unable from being too young to fight or unable for just maturity. Or they understand and think they can plan for that time, not understanding things happen…like government disintegration programs they haven’t ability to defend against. It is hard to tell which generation social security will be dissolved under. There isn’t a fight because people are beginning to believe these new values…everyone around them believes them…the church says it is right…the new books espouse the same views. It is almost impossible to have a different thought. Make plans for the death, because the burial plot values will change too because they want the land back. The new value will be cremation.

    • yo tatlp very smart thinking i agree with you hundo about the “everyone around them believes them”. but i have another question for you. if you message back ill ask u

  16. Gold and Silver isn’t going to help you much. (confiscation, theft, robbery, death)
    Invest for the really long term. Get treasure in heaven where rust and moth doesn’t destroy.
    Jesus is the only way to avoid going to hell for eternity.

    • That’s right.

  17. I know the CFR and its sister groups are the cause of all of our troubles, why are they untouchjable, they are treasonous and they seem to rule the whole country if not the world along with the Rothchilds. They should be sued for conspiring against American citizens, theit money confiscated and used to pay off our debts that they have caused to skyrocket along with their backing of Obama. The rest of the money should be distributed among American citizens only along with legal immigrants, everyone else should be deported back to whence they came. The CFR is in our pentagon, Our Government and has always been involved with getting our Presidents elected, they are not elected officials and they should not be allowed to function in any Governmental process.

    All of the members of our Government who are members should be removed. The UN should be removed, they carry out the elitists orders and are given too much power, such as the control over our water and now our farmlands, they are a body of foreign unelected officials , if this keeps up we will not have an America to worry aobut. The CFR has some strange ideas about the elderly considering the main players are in their 80′s and David Rockefeller is 93. I consider them not only useless eaters but a waste of space. I think we should contact Judicial watch and have them consider representing we the people in a class action suit on behalf of all American citizens and hopefully these groups will be disbanded and the ring leaders arrested like anyone else and end this plague once and for all. They are illegal and they are unconstitutional and engaged in criminal activities.

  18. Golly Bob, Can you make your article a little longer? Too much information. In a nutshell what you are saying is it is us or the Bankers.

    • What he is saying is that it’s gonna get bloody.

      • The reason why people do evil things is because they convince themselves God and his just punishment “Eternal Hell”, don’t exist. I’ve been to hell, one is plastered on the bottom of a black lake of fire and the torment is so bad you can’t even scream. I have also been literally looking at God’s face (eyes, nose, mouth and beard) in absolutely everything and have straight up slideshows of him. My point is, when people obey Jesus Christ instead of just posing as his servant, HE LITERALLY SHOWS YOU HIS FACE IN EVERYTHING!. If we get enough “little” people on board to obedience to Jesus Christ, nobody will be able to deny his existence because those “little people” will be able to show others God’s face, proving Eternal Hellfire awaits for those who do evil, and it does.

        • We should not want to do good things because we fear “hell”. We should want to do good things because we love goodness.

        • If you’ve seen them, tell me what the people in hell look like. Tell
          me what our souls look like. If you do that, I’ll believe you.

        • The meaning of goodness is totally arbitrary without a standard of law.

        • RR said, “If you’ve seen them, tell me what the people in hell look like. Tell
          me what our souls look like. If you do that, I’ll believe you.”

          Bible passages describe that we would be recognizable in death.

        • You know, I’ve personally witnessed religious charlatans, of many faiths, financially operating within a comfort zone of plausible deniability.

          I have also seen phenomena, which cannot denied.

          The scoffers saw these phenomena and were unable to reconcile them with their concept of reality.

          May I suggest that zealous materialists are in many ways being spared from responsibilities which they are not capable of coping with.

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