Greetings,

Tomorrow we will see the US Senate passage of the health care legislation.  The citizenry are focused on what this bill will do to our health care – and they are MAD!!!  However, the citizenry doesn’t truly understand that this bill is not about people’s health – it’s about creating a new “trust” fund that the Federal government can steal health care tax dollars from.  If they TRULY understood what was about to happen to them then they would be visiting their representatives “en masse” to stop this – through a second American Revolution if necessary.  Those are strong words, I know.  But let me describe what is about to happen.

The American citizens are about to embark on a whole new level of debt slavery.  And it’s worse than it even sounds.  We will be required to pay money (representing 17% of our Gross Domestic Product) to the Federal government for health care, with that money going into a huge pile that represents the “Health Care Trust Fund” or some such name.  Each year, the Federal government will pay out health claims from that pile of money.  They will then STEAL any money left over in the “trust” fund and use it for other things that increase their power and control over the people.  They will replace the STOLEN money with a Federal government IOU.

Please understand what just happened.  Some of the money that you paid in that didn’t go to paid claims for the fiscal year will be STOLEN.  THEN, the money that is stolen from you will be replaced by an IOU!  Now you’re probably thinking – “at least they’ll eventually pay it back!”.  That’s true.  But who will pay it back?  Government IOU’s are promissory notes on YOUR future labor!  This means that the Federal government will STEAL part of your health care payments in order to amass more power and control over you – THEN they will have you work EXTRA labor to pay back the money that they STOLE from YOU!  Tar and feathers should be the order of the day.

You see, the international bankers have put a clamp on the availability of credit in our economy.  The Federal government depends on new debt to operate.  Thus, the international bankers have put a stranglehold around the neck of our nation.  It’s not only our nation – but every other industrialized country in the world.  They’re all controlled by central banks – which are simply pipelines between the international bankers and the respective governments, with the international bankers controlling all of the economic policies.

Governments are having to figure out new ways to fund their economies, since the international bankers have taken away the drugs of debt from the drug addicts.  Germany plans to sell 207 billion Euros of government bonds in 2010.  Why?  Because they are upping their government spending by 10.5%  in an effort to combat the credit destruction that the international banks have purposefully undertaken. German Debt Levels to Hit Bond Market.

Our media keeps telling us how we’re out of the recession.  They’re lying (or ignorant), pure and simple.

Our current recession (a.k.a. deflationary spiral) is not happening due to normal economic ebbs and flows.  It is directly caused by the international bankers through the withholding of new credit.  This causes massive amounts of existing credit to default, and the bankers are left with the underlying wealth from those defaults.  The last time that this scenario occurred was in 1929 – the Great Depression.

So when is this recession going to end?  It’s actually a very easy question to answer.

This recession will end when the international bankers stop strangling the industrialized nations and allow them to breathe again.

When will this occur?  I am not a prognosticator – but history shows that it will take in the neighborhood of ten years for the international bankers to complete their looting.  They will then make credit freely available again, which will drive moderate inflation over time.  This will have the effect of increasing the overall value of the loot that the international bankers stole.

Folks  need to understand.  This scenario can keep going for centuries.  If the international bankers didn’t periodically steal the underlying wealth from their Ponzi scheme then all of the economies in the industrialized world would eventually be overcome by hyperinflation – through the power of exponential debt growth.  Exponential debt growth means that debt in debt-based economies will grow exponentially over time.  At some point, the exponential curve reaches the point where it begins to climb vertically in value very quickly.  It is at this point that the international bankers collapse credit and strangle nations.  If they didn’t do this then citizens would quickly realize the game being played and we would have anarchy.  The international bankers like an ignorant citizenry.

Collapsing credit is the same as collapsing debt – which is the same as collapsing money.  Causing debt to collapse in a debt-based economy bring the exponential debt curve back from the brink of hyperinflation.  The international banks get richer, and the citizens of the industrialized nations continue on their merry way being serfs to the bankers – none the wiser about their economic condition.
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Watch for these indexes to drop:

Chinese Shanghai Composite Index: 3,073.78 (change of 5.91% from July 20, 2009 base value of 3,266.92)
Shenzhen Stock Exchange Component Stock Index (SSE): 12,813.29 (change of 4.24% from July 20, 2009 base value of 13,381.22)
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Here are today’s numbers for the economic indicator:

1) Gold = $1,087.10
2) Dollar Index = 77.93
3) Oil = $76.67
4) S&P 500 Index = 1,120.59
5) 3-month Treasury Bill yield = 0.05
6) 3-month OIS = 0.16

HEI = 30.80

(A value of under 100 indicates deflation, while over 100 indicates inflation – as referenced to Sept. 12, 2008…the day before Lehman Brothers collapsed)



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Here are the numbers for the day:

Dollar Index adjusted indexes:
Dow = (10,466.44) x (0.7793) = 8,156.50
S&P 500 = (1,120.59) x (0. 7793) = 873.28
Nasdaq = (2,269.64) x (0. 7793) = 1,768.73

3-month Treasury: 0.05

2-year Treasury: 0.92

10-year Treasury: 3.75

30-year Treasury: 4.61

2-yr vs. 10-yr Spread (Target > 273): 283 basis points – (Danger Zone)

2-yr vs. 30-yr Spread (Target > 369): 369 basis points – (Danger Zone)

3-month LIBOR: 0.25

3-month EURIBOR: 0.71

3-month OIS: 0.16

TED Spread: 20 basis points

LIBOR/OIS Spread: 9 basis points

Dollar Index: 77.93

Volatility Index: 19.71

JPY-EUR Exchange Rate (Target < 115): 131.3505

JPY-GBP Exchange Rate (Target < 145): 146.2498

JPY-USD Exchange Rate (Target < 90): 91.626

USD-EUR Exchange Rate (Target < 1.25): 1.4336

USD-CNY Exchange Rate (Target > 7.0): 6.8284

Warmly,

Brad

Comments or questions? brhamill@hamill.com