America Potentially The Next Weimar or Argentina

By: Bob Chapman
Posted: March 25 2009

Treasury Secretary Timothy Geithner tells us we are in a recession that will last for some time. Ben Bernanke, Federal Reserve Chairman says the economy would bottom this year. We do not think Ben is right but even if he was right he didn’t tell us how long we would bump along the bottom. If the bottom is in sight and Citigroup, GE, Hartford Insurance Lincoln Insurance, AIG, GM and Chrysler, etc. won’t need any more government funding. In fact banks are telling us they are going to make money in the first quarter. If all this is so, why is Mr. Bernanke monetizing $300 billion of Treasuries. We notice he has made no statement regarding the secret monetization that has been going on for four months. Needless to say, that is another state secret. He might also explain why there was enormous call buying in bond futures options over the three days prior to the announcement on Wednesday. Obviously there was a major leak to the anointed on Wall Street.

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