| -Caveat Lector-
http://www.almartinraw.com/column75.html The BUDsterization of America by the Bush Cabal by Al Martin (October 14) The BUDsterization of America is almost finished. Because of Bushonomics, the American people are becoming BUDsterized. They are in other words, Broke, Useless and Depressed, i.e. BUDsters. This was a phrase I created which was popularized for a while and then everybody started using it. People would call in on radio talk shows and say, "Al, I've been BUDsterized." And everybody knew what they meant. The rallies in the market continue to be fake-out rallies and we recommended shorting into it. Those who followed our advice did very well by the end of the week. The sell off has come from what we previously reported - concerns for underfunded fixed pension schemes at US corporations. General Motors, Ford and Chrysler have admitted that the arrearages in their fixed pension systems are billions more than initially reported. This then leads to this thought -- how many other corporations are there with fixed pension plans, which are dramatically underfunded because the Reagan Bush/ Bush II Regimes purposely allowed corporations to skirt the law when it came to their pension contributions in exchange for large campaign donations to the RNC? The other upcoming problem is the enormous amount of money that has been lost by the individual state, county, and munuipal pension systems. As CALPERS (California State Pension System) itself admitted, it may take decades to recover. There is no longer enough pension money in the states to pay out the pensions in the years to come. The states are left with some very unpalatable choices-either cut pension benefits (reduce pensions) or, for the first time since the Great Depression, states are going to have to use general tax revenue to subsidize pension systems. There isn't any money left. The money has been transferred to shadowy offshore Republican controlled accounts that were short the markets. There literally isn't any money left in the country. Since the markets are a zero sum game, where has the liquidity gone? The liquidity has gone to Republican controlled offshore trading accounts, which will then be buying back stocks at ten cents on the dollar. It's the old Bushonian trick. The government, through its own economic malfeasance, takes everything down, then the Bush Cabal who were short the whole time (all the money got transferred to them) then repatriate the money and buy everything back for ten cents on the dollar. It's a great scheme. The Bush Cabalists accounts grow fat as the markets crash. Pro-Gov Net Media (Pro-Government Network Media) has consistently been marching out the same old mutual fund guys aligned with the Republican Party or the same old analysts who work for firms that are aligned with the Republicans who kept saying, "Buy, buy, buy." More recently, however, they're bringing out analysts who actually know what they're talking about and who are not politically aligned. They present information, which echoes what we've been saying. Everyday, the situation has become more dire. As we had previously predicted and as the White House finally confirmed, the US Government will now move to a cheap dollar policy in an effort to stimulate exports. Of course, this has always proved to be a bad idea in the past. When the US Government has purposely tried to cheapen the dollar, it has always boomeranged on them. The reason why the Bush Administration wants to do it is to spur export growth. The Bush Administration has admitted that when you cheapen the dollar you create an inflationary implication. Insofar as inflation is already so low and we are suffering from a global deflation, they're not worried about the inflationary impact. But there's a two-fold negative when you cheapen the dollar - the other negative is that you cause an exodus of foreign money out of your own country when you cheapen your own currency. This is foreign money, which our government relies on almost 100% in order to finance its ever-increasing federal budget deficits. This money leaving means that this in itself could push interest rates higher. The government has the ability to create an artificial demand for money. In other words, it's not a demand for money created through an increase in gross domestic product or an increase in consumer spending. It is being generated by our ever-increasing needs to finance debt. It's an artificial demand created through deficit financing. If you cheapen your own currency and chase that money out of your own country, that money isn't going to be so quick to come back again -- unless you make it worthwhile. Money flows to where it is best treated, so the United States would have to figure in a "risk premium" if they want that money back. Therefore interest rates would have to rise. The coupon rate that US Treasuries pay are now at forty year lows and they would have to rise in order to compensate foreign investors for a new currency risk which the US Government has itself orchestrated. That money would probably flow into Swiss francs and gold. That is traditionally the reverse flow. Then there's the Euro, which confuses the issue. The Japanese market has hit new twenty-year low so people are still frightened of the Yen. They're frightened of the Deutchmark. Gold and francs is where it would be heading, but it's a constant flow of money. Those pundits who were worried about a massive outflow of foreign currency from the US have been wrong. There has an actually been an increase of foreign inflows into the United States through this market debacle but that is very deceptive because of the way the Treasury Department calculates it. There has not been any real fresh foreign money coming into the United States. There has been a massive switch among foreign investors form US equities into US bonds. The American people have been doing the same thing. If you look at the monthly statistics of outflows of equity mutual funds versus inflows into government bond funds, you see the American people doing the same thing to the tune of about $20 billion per month. This has actually helped the US Treasury because we have a tremendous inflow of domestic money into bond funds particularly short term bond funds because people are just looking for an alternative for capital preservation. These short-term bond funds are big buyers of short-term US Treasury instruments. Following in the steps of the Reagan-Bush Regime, the current Bush Administration keeps shortening the so-called yield curve. They keep issuing less and less five and ten year bonds and more and more thirty and hundred eighty day T-bills because it's obviously cheaper for them to do so. A ten-year bond is yielding three and a half percent. A one-year US Treasury is yielding one and a quarter percent. So what they have done is reduce the yield curve by essentially transferring debt from the long end of the maturity spectrum to the short end of the maturity spectrum. And it does save the Treasury money -- until a little inflation comes along. The problem when you shorten the curve is that you make your debt suddenly very inflation sensitive. The minute a little inflation comes along it's going to be the short end that's going to react first because rates are already so low. Then there's the sniper around Washington, D.C. and Maryland who keeps shooting people. It should be noted that this guy started shooting people on the day that most people got their IRA/ 401(K) statements. The other thing about it is that he's only shot people on the day the market's been down. The few days that the market has been up, he hasn't shot anyone. He could even be a Media Distraction on the days that people shouldn't be focused on the crashing economy. The sniper could very well be a distraction from the deleterious effects of Bushonomics. The correlation is interesting. Al Martin Raw.com has maintained that the tremendous increase in violence in our society is directly related to the Bushonian Economic Meltdown. People just throw their hands up in the air and say they don't care anymore because they don't have anything else to lose. We've seen this even with people that kidnap these kids recently. When they're interviewed in jail, the guy said, "Look, since Bush has been elected, my life has fallen apart. I've lost my job and been forced into bankruptcy. My IRA account has been wiped out. What is there left?" The global economic debacle also continues. With "Lula" di Silva a virtual shoo-in in Brazil, you could say that Brazil is now what Great Britain will be in ten years. The feeling in Europe is that because of the policies of the Pan-European Left, their countries are falling apart and they don't really care about anything anymore either. In fact there was a poll done in Britain, which completely shocked the Blair Administration last month. The poll results showed that 54% of the British people said they would leave Britain if they were able to do so. Imagine how depressing that has to be. The British economy is in a downward spiral and the people are tired of the taxes, paying $6 for a gallon of gasoline, and particularly living in a place where it rains 300 days a year. It's one thing to pay $6 for a gallon of gas or $60 for a bottle of Scotch and get to lie on a beach in the Caribbean, but having to do that in a place, where it rains 300 days a year and its cold and windy - that's got to be depressing as hell. And forget about the food. It should also be remembered that Britain has the highest suicide rate of any first world nation. Treasury Secretary O'Neill was asked once again -- Can the US afford the War on Iraq, and he answered, I'm supposed to say yes. He put his hand on his backside and said that he was tired of getting White House spankings all the time, so he said I'm supposed to say "Yes." O'Neill was the head of Alcoa whose stock has also crashed, but O'Neill cashed out a long time ago. Also Cheney got out of his Halliburton stock before it went down. And since it was controlled mostly by insiders and institutions, there wasn't much public clamor about the consequences. World Com on the other hand was not initially designed to be a scam. A lot of little people got hurt because it was sold through brokers at a retail level and that's why they they're having these class action lawsuits. Also there were three-year restrictions so employees couldn't even sell their stock. In a setback to the Republicans, Mike Taylor, who was running against Senator Max Baucus in Montana, unexpectedly dropped out of the race. The story is that he made his fortune in a hair restoration tonic in the late 1980s and early 1990s. This tonic was supposed to restore and rejuvenate hair, but it was all a fraud. The FTC notified the Department of Justcie in a complaint about it. The ad, which the Democrats ran, just killed the guy. It showed him rubbing hair tonic on this guy's hair in a salon. He's sitting there with his legs crossed wearing a tight pair of bell-bottom pants and a little pencil mustache. The ad supposedly implied that Mike Taylor was gay. What they're not talking about is that this whole hair tonic operation was a fraud and that the FTC recommended that he be prosecuted for fraud. The Bush I Administration inserted itself to make sure that Taylor wasn't prosecuted because of the enormous contributions he had made to the Republican National Committee. He had donated a lot of money, but he's nothing more than a Republican Scamscateer who was allowed to get away with it because of the money he donated. But you have to love the spin the Republicans immediately put on it. The preemptive spin criticized the ad implying that the Democrats were trying to paint this guy as being gay and that was the spin. The real story is that this guy is just a garden variety Republican Scamscateer who was not prosecuted for fraud because of the money he had given to the Republican Party. They just figured they could pull this off in the backwater state of Montana. They were just hoping to sneak another Republican in the back door, so if you're running a Republican with a lot of baggage, you run him in the most backwater state possible where there's the least chance of discovery. The latest report is that former Montana governor Mark Racicot is considering taking his place. Racicot has an interesting history - and a lot of baggage too. He was the attorney general of Montana, then the governor, and then a lobbyist for Enron and finally the chairman of the Republican National Committee. While he was attorney general he got involved with Helen Chenowith in covering up a bank scandal. This bank was later bought up by Banc One of Columbus Ohio, a Republican controlled bank, which buys banks with "problems." This bank had mob connections and was very close to the Bush people. This bank was not only mobbed up, but Republicanned up at the same time. And the Democrats don't have the balls to step up to the plate and tell the truth. It's interesting to note that the Democrats didn't respond to the RNC statement. They just had a counter statement that said they weren't trying to portray this guy as gay. But they did accomplish their goal. In other news, The FTC chairman turned down the merger of Echostar and Dish Network because they were afraid of the monopoly that would be created since it would be the only company that would control all satellite TV in the country. The FTC hasn't turned down a merger in the last nineteen merger proposals, but the chairman came out and said that he is personally tired of FTC powers being constantly usurped by the Department of Justice. Ashcroft and the Department of Justice were upset at this statement. The FTC chairman was asked about Ashcroft's response and he said that he told the Attorney General that despite his most fervent wishes to the contrary the "Department of Justice is not yet the Gestapo - at least not yet." The inside joke around the Beltway is that a lot of people are (privately, behind his back) calling Ashcroft -- "Heinie." It's a reference to Heinrich Himmler, chief of the SS and the head of the Gestapo. One of the reporters yelled at the FTC Chairman after he had already finished his statement, "Aren't you concerned about our new all-powerful Attorney General?" He wouldn't answer any other questions, but when he heard that he turned and looked at all the reporters and said that he had no intention of apologizing. Then he added that his comments may come back to haunt him -- when the day comes that our erstwhile Attorney General is donning his jackboots and swinging his swagger stick. <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! These are sordid matters and 'conspiracy theory'—with its many half-truths, mis- directions and outright frauds—is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://peach.ease.lsoft.com/archives/ctrl.html <A HREF="http://peach.ease.lsoft.com/archives/ctrl.html">Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/">ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om |
