Economy Collapse

Economy Collapse

On Saturday's show with Ian Punnett, editor and publisher of International Forecaster, Bob Chapman, discussed the economic crisis, how brokerage firms such as Goldman Sachs played a part in fueling the collapse, and where he sees the economy heading into the future. He dismissed news that the economic crisis may be abating. Instead, Chapman said, we are merely seeing a "barrage of government propaganda, the payoffs that go on everyday, convincing people that everything is going to be okay."

He decried the use of derivatives by large firms like Goldman Sachs and alleged that their nefarious activity goes even further than that. According to Chapman, these companies pay a fee to have their automated trading computers positioned closest to the central computer of the New York Stock Exchange, which processes incoming and outgoing trades. "Because of its proximity, in nanoseconds," Chapman explained, the computers, and thus the firms, become "privy to orders before anybody else is and they are able to counteract what is going on with the orders, in order to make a larger profit.