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THE INTERNATIONAL FORECASTER

WEDNESDAY - JULY 15, 2009


071509(4)_IF
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An international financial, economic, political and social commentary.

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July 30th.

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Lets Get Real With Reuben Torres " is an open forum where topics on politics,
immigration, health, education, and other global issues, that affect our country and the
world at large, are discussed and debated at local, national, and global levels. "Lets Get
Real With Reuben Torres "airs every Tuesday evening from 9:00 pm to 10:00 pm unless
otherwise noted. - Next appearance: August 25, 2009.
Farren Shoaf –August 1, 2009–The Real News Radio

US MARKETS
Last week the Dow fell 1.6%; S&P fell 1.9%; the Russell 2000 fell 3.3% and the
Nasdaq slipped 1.8%; cyclicals fell 3.6%; transports 1.5%; consumers 1.6%; utilities
1.4%; banks 2.3% and broker/dealers 2.8%. High tech fell 1.8%; semis 1.8%; Internets
2.1% and biotechs 2.7%. Gold bullion fell $19.50 and the HUI gold index fell 8.4%.
Two-year T-bill rates fell 10 bps to 0.82% and the 10’s fell 21 bps to 3.30%.
Ten-year German bunds fell 8 bps to 3.26%.
Freddie Mac pegged the 30-year fixed rate mortgage off 12 bps at 5.20%. The
15’s fell 8 bps to 4.6% and the 1-year ARMs fell 12 bps to 4.82%.
Fed credit declined $9.5 billion to $1.977 trillion, off $269 billion ytd and up
123% yoy. Fed foreign holdings of Treasury and Agency debt jumped $20.5 billion to a
record $2.787 trillion. Custody holdings for foreign central banks rose 20.7% ytd, and
were up 18.6% yoy.
M2 narrow money supply fell $36 billion having expanded 9.1% yoy. Total
money market fund assets rose $4.4 billion to $3.668 trillion.
This past week the dollar index, the USDX, was unchanged at 80.26.
During the week of the G-8 meeting the US pushed the dollar up. They
attempted the same with the stock market unsuccessfully and successfully drove bond
yields down and bond values up. They also smashed commodities, especially oil and
pressured gold and silver lower. The problem is they cannot continue. They do not
have the power to do so. Those suppressed markets will reverse and rise.
The dollar was on the verge of breaking below 79 on the USDX, so the ECB
announced they would pour $613 billion into 1-year deposits. This was to encourage
bank lending in the eurozone, which gained by only 1.8% in the first half of the year.
The US banks had a similar experience.
One thing is for certain and that is that low interest rates encourage carrying
long gold and silver positions. That is true for commodities as well, which in the second
quarter rose. Oil gained 45%; copper 28% and wheat 20%. Gold and silver were not
allowed those gains by our government. While holding interest rates at 1% the ECB
now has M3 increasing at a paltry 3.7%. In our mind there is no question that the
eurozone is about to slip into severe depression. The 16 economies are being
strangled to death.
The Democrats playing politics have made a huge mistake with the stimulus
package and we noted that in January. We predicted 90% of the personal stimulus
would be used to reduce debt. As it turns out 92% will probably be the number. The
consumer did not perform up to the desires of Washington’s elitists. We said in
January because of that another $2 trillion package would be needed and discussion
began last week. Most of the current package will be spent next year in the election
year. Greed has foiled any kind of a recovery this year. If the politicians had not
politicized the $787 billion package, GDP would not have been a minus 5.5% in the
first quarter. We expected minus 5% for the second quarter and minus 4 for the rest of
the year. They missed the boat. U6 unemployment is 20.5%. Had these politicians not
been so stupid unemployment, U6, could have been held at 14.8%.

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We have a situation socially similar to that of the early 1990s, only this time it is
twice as bad. Blue-collar workers know they won’t get their high paying jobs back,
because our transnational elitist conglomerates have stolen them. They not only took
our jobs, they took our dignity as well, and are hiding their profits offshore depriving
our Treasury of badly needed revenue. Unemployment will continue to deteriorate thru
to the end of the year and next year will only hold its own. That is going to see the
rebirth of the militia movement in America. Such a movement gained momentum in the
early nineties, but it faded as the economy improved. This time, improvement is not on
the way – only more unemployment and inflation are.
If you surgically remove the birth/death ratio U6 was 20.5% last month as we
lost not 467,000 jobs, but in reality 652,000 jobs, and the workweek fell to 33 hours. In
little over two years we have lost more than 9 million jobs. We have almost 15 million
unemployed, which in great part is the result of free trade, globalization, offshoring and
outsourcing over the last 8-1/2 years. Those jobs will never return unless we erect
tariffs and start taxing corporate profits that are held offshore. We are doomed to be a
third world nation enveloped in a fascist police state and we can assure you that you
won’t like it one bit. During the second quarter to make things more binding wages fell
1.6% due to slave labor goods being imported into our country. As we quoted before,
even the Centre for Labor Market Studies in Boston says unemployment is 18.2%.
The reason militias will gain major traction is that the workers now know their
jobs are gone forever, which leaves them in desperation. The feeling already out there
is worse than it was in the 1930s. Like in the 1930s savings are being depleted and
real estate is still falling and people are becoming destitute. This social condition is one
of destitution. The cushion people once had is gone.
You saw the riots in Europe earlier this year. Unemployment is almost 19% in
Spain and 37% among the young, many of whom have university degrees. Latvia is
close to 16% and Germany is looking at a 35% increase in unemployment between
now and the end of 2010.
Social justice is absent in our country and in other countries. The rich are
getting richer and the poor, poorer caused mainly by globalization. If workers do not
get justice there will be violence worldwide. You can take that to the bank, if it is still
there.
Goldman Sachs is in big trouble, but the media refuses to dig and get the same
story the alternative media has dug up. As usual the SEC is looking in a different
direction, as far away from the real action as possible.
The latest allegation is front-running their own client orders, never mind
everyone else’s. As we reported earlier they are using a government created program.
A good question is are they front-running for both themselves and the government,
which might make it semi-legal? Of course nothing ca be semi legal. It is either legal or
it isn’t. Goldman has been confronted on the issue and refuses to answer detailed
questions, just saying, “your suggestion that we monitor our website to facilitate front-
running is untrue and offensive.” Unfortunately, this confirms our worst suspicions. If
we were using the Goldman 360 portal for trading we’d stop until we at least
investigate to make sure we were not being cheated. Where may we ask is the SEC?
Camping out on the moon most likely. This episode is just beginning. This is another
example of cross corruption and arrogance by both our government and Goldman.
Democrats want to prevent the use of non-public information to enable
investment decisions. The bill’s sponsors are Rep. Brian Baird (D-WA) and Louise
Slaughter (D-NY). They propose lawmakers and their staffs would be prohibited from
trading in stocks, bonds and commodities markets based on insider knowledge
gleaned from their everyday duties on Capital Hill. It would also prohibit transfer of

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such information to other parties, who would then use the information for trading
purposes.
Insider dealing is going on, but it is not easy to detect. Washington is a town
that trades on information and so the likelihood that it is happening is almost a
certainty. This has probably been quite evident during the government bailouts of the
past two years.
Public opinion of elected representatives is low enough as it is, so the mere
appearance of abuse of power at this critical stage could lead to further erosion of
public trust.
The SEC has jurisdiction over trades of non-public information gotten through
corporate channels, but not through government channels. That is quite a gaping
loophole. There are studies that indicate that elected representatives do considerably
better in the market than the average public investor.
The question is will Congress police itself and the answer is in all probability
no. Just like campaign contributions and lobbying should end, but they won’t end.
Representatives and senators don’t want to lose their gravy train for reelection. These
people go to Washington to get rich. Nothing is going to change. Most of Congress are
bought and paid for.
We hope people are starting to realize that the privately owned Federal
Reserve runs our country, not our branches of government. The new proposal to give
the Fed new powers is the worst possible thing that could be happening to our country.
It is a total centralization of banking and financial power.
All financial services would be overseen by the same characters that we see
each day that evolve through the revolving door from Wall Street to Washington. The
Fed would supervise all firms that are involved in finance based on the premise that
they could be a treat to the stability of the financial system. There would be another
new czar to supervise all federally chartered banks. All current regulatory loopholes
would be closed so that the Fed would have total control of all financial firms. In
addition, all hedge fund and private equity advisors would come under Fed control.
This is nothing less than total financial control of our lives. It leaves government as an
afterthought.
As the Fed wraps this up in the US the same is being done in Europe and
worldwide, so it can be harmonized. We would become part of an international
structure called the Financial Stability Board, which you have seen pushed hard in
England and France.
The FSB will have a tight grip on matters financial worldwide and in that
endeavor will in part relieve us of our sovereignty. This move is similar to the
imposition of a world currency or a world penal system where you would be imprisoned
for disagreeing with the new world order. The FSB rules are to control the world
financial system under one head and make it easier to implement a world currency.
This will be a total restructuring of the financial system. Central banks will control
everything financial worldwide and answer to a central committee at the FSB.
Meredith Whitney, who exposed the scam that was Citigroup two years ago,
said on CNBC that Goldman Sachs looked good and the stock rose. She mentioned
nothing about the stolen Goldman-US government Program to rig the markets. She
also predicted an official unemployment rate of 13% to 14% and needless to say the
market rallied.
CIT Financial, a lender to a million small and mid-sized businesses is preparing
for bankruptcy after failing to get taxpayer funds. Our guess is the Treasury will save
them and we’ll get to pay for it. They have a $1 billion payment due in August, and

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cannot make it without help. It has already received $2.3 billion from the Troubled
Asset Relief Program. Their investment grade is junk.
The Goldman Sach’s proprietary software was launched in May 2007 at the
same time Mr. Aleynikov, the accused data thief, was hired by Goldman. In the
following year the trading desk broke all records. This was highly unusual in such a
bad market; yet, the SEC chose not to investigate.
The June budget deficit was $94.32 billion versus a surplus of $33.55 billion
year-on-year.
BusinessWeek, the McGraw-Hill Cos. magazine that lost 30 percent of its
advertising revenue in the second quarter, is up for sale, according to a person close
to the situation.
The Obama administration is open to the idea of taxing the wealthiest
Americans to pay for healthcare reform, health secretary Kathleen Sebelius suggested
yesterday as the House of Representatives prepares to incorporate such a plan in its
draft healthcare bill.
Congress is gearing up to tackle healthcare before it leaves for recess in
August, although the timetable has been slipping amid wrangling over how reform
should be paid for and whether it should include a public insurance option.
Democrats in the House will present a bill as soon as today proposing a 1 per
cent surtax on couples with a joint income of more than $350,000, rising to as much as
3 per cent on those earning more than $1m.
They estimate this will raise about $540bn over 10 years – half the expected
cost of reforming the system. The rest would be covered by lower spending on
Medicare, the programme for the elderly, and other savings.
The plan has drawn heavy fire from Republicans, and Democrats in the Senate
will probably propose a different plan. But Ms Sebelius said on CNN: “I think
everything is on the table and discussions are under way,” adding: “I think the bottom
line is: it’s got to be paid for.”
Construction spending on offices, retail centers and hotels is likely to fall 16
percent this year and 12 percent in 2010, more than previously forecast, the American
Institute of Architects said.
Rising unemployment and reductions in business spending prompted the Washington-
based institute to cut its outlook from January, when it predicted non-residential
construction spending would drop 11 percent this year and 5 percent in 2010.
CIT Group Inc., the century-old lender to 950,000 businesses that has been
unable to persuade the Federal Deposit Insurance Corp. to guarantee its debt sales,
hired bankruptcy specialist Skadden, Arps, Slate, Meagher & Flom LLP as an adviser
amid a plunge in its stock and bonds.
The FDIC is concerned that standing behind CIT debt would put taxpayer
money at risk because the company’s credit quality is worsening, said people familiar
with the regulator’s thinking who declined to be identified because the talks are private.
The FDIC has backed $274 billion in bond sales under its Temporary Liquidity
Guarantee Program since Nov. 25.
“Skadden is one of the principal law firms representing CIT,” Curt Ritter, a
spokesman for New York-based CIT, said in an e-mail. “They represent the firm on a
wide variety of corporate matters. CIT will not comment on any specific aspect of their
engagement.”
The Wall Street Journal, citing people it didn’t identify, said the hiring comes as
CIT prepares for a possible bankruptcy filing. New York-based Skadden is known for
its work in mergers and acquisitions and bankruptcies. The firm represented BHP

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Biliton Ltd., the world’s largest mining company, in its $150 billion proposed acquisition
of Rio Tinto, and advised Circuit City Stores Inc. in its bankruptcy.
The federal agency, run by Chairman Sheila Bair, is in discussions with CIT
about how the lender can strengthen its financial position to get approval, including
raising capital, said one of the people. CIT’s measures to improve its credit quality,
such as by transferring assets to its bank, have been insufficient, the person said.
CIT’s $500 million of floating-rate notes due in November 2010 fell 3.5 cents on
the dollar yesterday to 70 cents, according to Trace, the bond-price reporting system
of the Financial Industry Regulatory Authority.
Credit-default swaps on CIT rose 2.5 percentage points to 37 percent upfront,
and earlier reached 38 percent, according to broker Phoenix Partners Group. That’s in
addition to 5 percent a year, meaning it would cost $3.7 million initially and $500,000
annually to protect $10 million of CIT debt for five years. The upfront cost reached the
highest since Oct. 17, when it climbed to a record 41.5 percent, according to CMA
DataVision prices.
The world’s most affluent nations will take decades to work off the biggest
buildup in debt since World War II. The political costs may be permanent, laid bare at
this week’s Group of Eight summit of leading industrial powers. Bank bailouts and
recession-fighting measures will explode the debt of the advanced economies to at
least 114% of gross domestic product in 2014, more than triple the 35% of the main
emerging economies including China, the International Monetary Fund forecasts. The
run-up in debt has hastened a power shift that is sapping the industrial world’s
authority to impose its economic doctrine, currency arrangements or greenhouse-gas
reduction strategies. Even some G-8 officials acknowledge that the group has lost its
grip amid the global recession they spawned. The eight-nation forum is ‘a lot less
relevant given its makeup and given developments in the world,’ French Finance
Minister Christine Lagarde said. Big players, like emerging economies, India, China or
Mexico, are invited, but they’re given only a jump seat outside of the main summit.
Government insured home loans jumped to 36 percent of all U.S. mortgage
applications in June, the highest since 1990, the Mortgage Bankers Association said.
Federal Housing Administration and Veterans Administration loan applications
increased in market share from 25.7 percent in May and from 27 percent a year
earlier, the Washington-based trade group said today in a statement.
A record 33.8 million people received food stamps in April, up 20% from a year
earlier, as unemployment surged toward a 26-year high. It was the fifth straight month
of record participation in the Supplemental Nutrition Assistance Program, according to
the U.S. Department of Agriculture, and up 1.8% from the prior month. Total spending
was $4.5 billion, up 19% from the previous all-time high reached in March, the USDA
said.
U.S. office vacancies rose to the highest in four years in the second quarter as
job losses mounted and demand for space declined, Reis Inc. said. The vacancy rate
increased to 15.9% from 13.2% a year earlier.
Vacancies at U.S. retail properties rose in the second quarter to the highest in
at least a decade, Reis Inc. said. Shopping center vacancies climbed to 10% from
8.1% a year earlier… Mall vacancies increased to 8.4% from 6.3% a year earlier.
The Detroit Public Schools may have no choice but to file for Chapter 9
bankruptcy, which would make it the first big-city school district to use bankruptcy court
to avoid paying millions to vendors, employees and bondholders, experts said
Thursday.
62% Oppose Federal Bailouts for State Budget Problems …just 20% of adults
favor bailing out financially troubled states.

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At one of our dinners, Milton recalled traveling to an Asian country in the 1960s
and visiting a worksite where a new canal was being built. He was shocked to see that,
instead of modern tractors and earth movers, the workers had shovels. He asked why
there were so few machines. The government bureaucrat explained: "You don't
understand. This is a jobs program." To which Milton replied: "Oh, I thought you were
trying to build a canal. If it's jobs you want, then you should give these workers
spoons, not shovels."
House Democrats plan to pay for their healthcare legislation with a big tax
increase on wealthy households, aiming to raise $540 billion over the next decade with
a package of surtaxes on families making $350,000 or more.
The tax increase is the financial cornerstone of legislation that seeks to make
good on President Barack Obama's call to expand health-insurance coverage to tens
of millions of uninsured Americans, while attempting to offset the cost and avoid
expanding the federal budget deficit.
Upper-income families currently face a top income-tax rate of 35%, though that
is scheduled to rise to 39.6% in 2011…married couples making $350,000 would also
be subject to a 1% surtax to cover the health plan. The levy would rise to 2% for those
making above $500,000 and 3% for those with incomes of $1 million or more.
Congressional aides said the surtax rates would go higher as soon as 22%, 3% and
about 5% for each of the three levels. [Can you say, ‘Great Depression II’?]
As many as 650,000 workers may exhaust even their extended benefits within
three months, said Maurice Emsellem, policy co- director for the National Employment
Law Project, a nonprofit advocacy group headquartered in New York.
A United Nations agency is quietly drafting technical standards, proposed by
the Chinese government, to define methods of tracing the original source of Internet
communications and potentially curbing the ability of users to remain anonymous.
The U.S. National Security Agency is also participating in the "IP Traceback"
drafting group, named Q6/17, which is meeting next week in Geneva to work on the
traceback proposal. Members of Q6/17 have declined to release key documents, and
meetings are closed to the public.
The potential for eroding Internet users' right to remain anonymous, which is
protected by law in the United States and recognized in international law by groups
such as the Council of Europe, has alarmed some technologists and privacy
advocates. Also affected may be services such as the Tor anonymizing network.
"What's distressing is that it doesn't appear that there's been any real
consideration of how this type of capability could be misused," said Marc Rotenberg,
director of the Electronic Privacy Information Center in Washington, D.C. "That's really
a human rights concern."
Nearly everyone agrees that there are, at least in some circumstances,
legitimate security reasons to uncover the source of Internet communications. The
most common justification for tracebacks is to counter distributed denial of service, or
DDoS, attacks.
But implementation details are important, and governments participating in the
process - organized by the International Telecommunication Union, a U.N. agency -
may have their own agendas. A document submitted by China this spring and obtained
by CNET News said the "IP traceback mechanism is required to be adapted to various
network environments, such as different addressing (IPv4 and IPv6), different access
methods (wire and wireless) and different access technologies (ADSL, cable, Ethernet)
and etc." It adds: "To ensure traceability, essential information of the originator should
be logged."

8
The Chinese author of the document, Huirong Tian, did not respond to
repeated interview requests. Neither did Jiayong Chen of China's state-owned ZTE
Corporation, the vice chairman of the Q6/17's parent group who suggested in an April
2007 meeting that it address IP traceback.
A second, apparently leaked ITU document offers surveillance and monitoring
justifications that seem well-suited to repressive regimes:
A political opponent to a government publishes articles putting the government
in an unfavorable light. The government, having a law against any opposition, tries to
identify the source of the negative articles but the articles having been published via a
proxy server, is unable to do so protecting the anonymity of the author.
Goldman Sachs Group Inc (GS - News) executives sold almost $700 million
worth of stock since the collapse of rival Lehman Brothers last year, the Financial
Times said on Monday.
The newspaper said that most of the stock sales took place while the biggest
U.S. investment bank was bailed out by the government with $10 billion of taxpayer
money, according to filings with the Securities and Exchange Commission.
A Goldman Sachs spokeswoman declined to comment.
Goldman executives sold stock worth $691 million between September 2008
and April 2009, more than the $438 million in stock sold between September 2007 and
April 2008, when the average share price was substantially higher, the Financial Times
said.
The stock sales peaked between December and February, when Goldman
Sachs' shares traded near record lows, the newspaper said.
Sales at U.S. retailers rose in June, helped by incentives at car dealers and
higher gasoline prices that boosted service-station receipts.
The 0.6 percent increase was larger than forecast and the biggest gain since
January, Commerce Department figures showed today in Washington. Purchases
excluding automobiles and gasoline dropped for a fourth consecutive month.
Consumers are seeking discounts at chains such as TJX Cos. and 99 Cents
Only Stores, and are favoring necessities such as food and fuel over discretionary
items. While the increase in total purchases reinforces forecasts for economic growth
to resume this quarter, analysts anticipate job losses and falling home values will
weigh on household budgets and mute a recovery.
Prices paid to U.S. producers rose in June by twice as much as anticipated, led
by surging gasoline costs.
The 1.8 percent increase in prices paid to factories, farmers and other
producers followed a 0.2 percent gain in May, the Labor Department said today in
Washington. Excluding food and fuel, so-called core prices rose 0.5 percent.
Tepid consumer spending and business investment is forcing companies to
boost incentives or keep a lid on prices in order to move merchandise. A surge in
energy costs in recent months is abating in the current month, indicating inflation may
subside in coming months.
Goldman Sachs Group Inc.’s second- quarter profit exceeded analysts’
estimates as record trading and stock underwriting led the company to its highest
quarterly profit.
Net income in the three months ended June 26 was $3.44 billion, or $4.93 a
share, the New York-based bank said today in a statement. That surpassed the $3.65
per-share average estimate of 22 analysts surveyed by Bloomberg and compared with
$2.09 billion, or $4.58 per share, in last year’s second quarter.

9
Eliot Spitzer, the former New York governor and attorney general, said U.S.
banks made a “bloody fortune” while receiving taxpayer money without a proven
benefit to the wider economy.
Politicians understand the “populist rage” with excesses in the financial industry
and in this case the “public is right,” said Spitzer in a Bloomberg Television interview
today. “We have saved financial services, we have not created a single job. We are
still bleeding jobs.”
As New York attorney general, Spitzer was known as “the sheriff of Wall
Street.” He changed business practices and collected billions of dollars in settlements
from financial corporations such as Merrill Lynch & Co., American International Group
Inc. and Marsh & McLennan Cos. He later became governor, resigning in March 2008
after he was identified as a client of the Emperors Club VIP, a high-priced prostitution
ring.
Spitzer said new rules proposed by President Barack Obama’s administration
are irrelevant because regulators failed to enforce existing regulations.
“Regulatory agencies already had the power to do everything they needed to
do,” he said. “They just affirmatively chose not to do it.”
“You don’t need new regs to do it, you just need the will to do what they were
supposed to do,” he said.
Former Federal Reserve chairman Alan Greenspan had “avowed a theory of
hands off” while he oversaw the financial markets and didn’t consider himself a
regulator, Spitzer said.
“What we’re seeing now is a new regulatory spirit,” he said.
Spitzer said the lessons of the financial crisis will only be remembered over a
short period of time.
“Over and over we fall into the same trap,” he said. “Ten years from now we will
have forgotten.”
May business inventories down 1%.
U.S. national chain store sales fell 1.7% in the first week of July versus the
previous month, according to Redbook Research's latest indicator of national retail
sales released Tuesday.
The latest numbers are starkly different from recent weeks because they don't
include Wal-Mart Stores Inc. (WMT), which said last month it would no longer provide
monthly sales figures.
The fall in the index was compared to a targeted 0.9% drop.
The Johnson Redbook Index also showed seasonally adjusted sales in the
period were down 5.7% compared with July 2008, which compares to a targeted 5%
decline.
Redbook said on an unadjusted basis, sales in the week ended Saturday were
down 5.7% from the same week in 2008 after a 4.3% decline the prior week.
Fast-forward to today. it's early June in Washington, D.C. Barack Obama, a
popular young politician whose leading private campaign donor was an investment
bank called Goldman Sachs - its employees paid some $981,000 to his campaign -
sits in the White House. Having seamlessly navigated the political minefield of the
bailout era, Goldman is once again back to its old business, scouting out loopholes in
a new government-created market with the aid of a new set of alumni occupying key
government jobs.
Gone are Hank Paulson and Neel Kashkari; in their place are Treasury chief of
staff Mark Patterson and CFTC chief Gary Gensler, both former Goldmanites. (Gensler
was the firm's co-head of finance.) And instead of credit derivatives or oil futures or
mortgage-backed CDOs, the new game in town, the next bubble, is in carbon credits -

10
a booming trillion dollar market that barely even exists yet, but will if the Democratic
Party that it gave $4,452,585 to in the last election manages to push into existence a
groundbreaking new commodities bubble, disguised as an "environmental plan," called
cap-and-trade.
The new carbon-credit market is a virtual repeat of the commodities-market
casino that's been kind to Goldman, except it has one delicious new wrinkle: If the plan
goes forward as expected, the rise in prices will be government-mandated. Goldman
won't even have to rig the game. It will be rigged in advance.
Steven Rattner, the Wall Street executive who joined the Obama
administration to help restructure General Motors Corp. and Chrysler LLC, is quitting to
return to “private life,” the Treasury Department said.
Ron Bloom, another member of the Treasury’s auto task force, will run the
group, said Secretary Timothy Geithner in a statement. With GM and Chrysler
emerging from bankruptcy, “we enter a new phase” of the government’s involvement in
the industry, the statement said. This is how they duck in and out nasty jobs.
President Obama's "car czar" is trading in his job at the same time a New York
state probe into his hedge fund intensifies.
Steve Rattner, co-founder of Quadrangle Group, is stepping down as the head
of the White House's auto task force after just five months.
He'll be replaced by his No. 2, Ron Bloom.
The departure comes as Quadrangle faces scrutiny by Attorney General Andrew
Cuomo into allegations Rattner's firm gave kickbacks to secure state pension fund
business.
The stories reporting the June budget deficit note that the US deficit has
topped $1 trillion for the first time. This is patently deceptive. The US deficit has been
running over $2 trillion for the past few weeks. ‘Treasury Gross Public Debt’ y/y
growth has been over $2T for the past few weeks. This is the amount of debt that has
been issued. It is not some fantasy accounting number issued by government toadies.
Arizona hometown grocer Bashas' Supermarkets Inc. filed for Chapter 11
bankruptcy protection late Sunday, hoping to buy time and money to ride out the
recession.
Executives at the Chandler-based string of 158 Bashas', Food City and AJ's
Fine Foods markets (156 in Arizona) say the company has been squeezed to the
breaking point by tight credit conditions, aggressive competitors and by increasingly
cost-conscious consumers who are buying beans and pasta instead of steak.
Officials said Sunday that they would close 10 Bashas' and Food City stores
July 21. Each store employs about 75 to 150 people depending on its size, so the
closures potentially could mean layoffs for approximately 1,000 people.
US Airways says it will cut 600 ground jobs this fall because of the slow
economy.
The airline says it will close its Las Vegas US Airways Club and reduce the
staff at its club in Phoenix. It will also shift to outside contractors for ramp service work
in nine stations, mostly those served by US Airways Express regional carriers.
New York Attorney General Andrew M. Cuomo has stepped up his
investigation of an investment firm founded by the former head of the Obama
administration's autos task force, with authorities engaging in discussions that would
be "a prelude to any settlement talks," according to a source close to the case.
Although talks between law enforcement and representatives of the
Quadrangle Group -- founded by Steven Rattner, who abruptly resigned Monday from
the auto task force -- have intensified in recent weeks, no settlement is imminent, the
source said.

11
"There have been no discussions of specific terms of settlement," said the
source, who spoke on condition of anonymity because the investigation is ongoing.
"The discussions have concerned the nature of the case."
Cuomo's office and the Securities and Exchange Commission have been
investigating for two years the use of middlemen by Wall Street firms to win lucrative
business from major public pension funds. The probe centers on millions of dollars in
payments made by Quadrangle and other firms to middlemen who helped the firms
win investments from the pension funds of New York state and other local
governments.
In SEC filings, a "senior executive" at Quadrangle, whom sources have
identified as Rattner, is described as having arranged a $1 million-plus payment to a
middleman. That middleman, Hank Morris, along with several others, has been
criminally charged. Morris has denied any wrongdoing.
Any eventual settlement would be to avoid civil charges. Sources familiar with
the investigation said criminal charges against Rattner or Quadrangle are unlikely,
although civil charges remain a possibility.
The cost of living in the U.S. rose more than forecast in June, led by a jump in
energy costs that overshadowed slower price gains for other goods.
The consumer price index increased 0.7 percent after a 0.1 percent advance in
May, the Labor Department said today in Washington. Excluding food and
energy costs, the so-called core index rose 0.2 percent. Compared with a year earlier,
prices fell 1.4 percent, the biggest drop since January 1950.
Manufacturing in the New York region shrank this month at the slowest pace in
more than a year as orders climbed by the most since the recession began.
The Federal Reserve Bank of New York’s July general economic index climbed
to minus 0.6, the highest level since April 2008, from minus 9.4 the prior month, the
bank said today. Readings below zero for the Empire State index signal manufacturing
activity is contracting.
Investor sentiment for U.S. stocks fell to the lowest level since March and
confidence in equities around the world declined as prospects for the global economy
worsened in June, according to a survey of Bloomberg users.
The Bloomberg Professional Confidence Survey’s measure for the Standard &
Poor’s 500 Index fell 14 percent to 39.59 in July, its second consecutive drop.
Readings below 50 show participants expect equity prices will decrease in the next six
months. The 2,088 respondents also said the outlook has worsened for stocks in
Brazil, Japan, Spain, Switzerland and the U.K., the broadest sentiment slump in four
months.
The MSCI World Index of 23 developed nations declined 4.7 percent after it
became the most expensive compared with profits since 2004 and the World Bank
said June 22 that the recession will be deeper than previously forecast. In the U.S., the
jobless rate reached a 26-year high and consumer optimism unexpectedly fell.
That 1% fall in business inventories in May was the 9th consecutive decline;
April fell 1.3%. The inventory of motor vehicles and parts fell 4.2% in May, the biggest
decrease since a 5.4% drop in July 2005. Business sales fell 0.1%. The inventory-to-
sales ratio fell to 1.42 months.
The July IBD/TIPP Economic optimism was 49.0 versus 50.8 in June.

*****

http://mgray12.wordpress.com/2009/07/11/tiaa-cref-breaking-the-buck/

12
TIAA CREF fund rumored to break the buck; Big Ben's image campaign.
Michael Gray
Deputy Sunday Business Editor
New York Post
mgray@nypost.com

*****

http://mgray12.wordpress.com/2009/07/14/goldman-earns-its-reputation/
Goldman earns its reputation
Michael Gray
Deputy Sunday Business Editor
New York Post
212.930.8592
mgray@nypost.com

*****

We Now Have A Total Gangster Government

http://www.youtube.com/watch?v=thR-lVuztIY

*****

War Crimes and the White House: The Bush Administration's Cover-Up of the
Dasht-e-Leili Massacre

http://www.youtube.com/watch?v=DM2OAEjUVbI

*****
Veronza Bowers, Jr. - Another Victim of America's Criminal Justice System
by Stephen Lendman

http://sjlendman.blogspot.com/
*****
Mandatory Swine Flu Vaccination Alert
by Stephen Lendman
http://sjlendman.blogspot.com/
*****
ICRC: Israel Traps Gazans in Deprivation and Despair
by Stephen Lendman

http://sjlendman.blogspot.com/

*****
Obama Says Sotomayor’s “Castrate White Males” Comment Taken Out of
Context
http://carbolicsmoke.com/2009/06/02/obama-says-sotomayors-castrate-white-
males-comment-taken-out-of-context/

13
*****
How to Brainwash a Nation
http://www.youtube.com/watch?v=IHgYPDvQFU8&feature=related

*****
Railroad Retirement investment losses.
http://www.yardlimits.com/forums/yard-office/11092-railroad-retirement-
investment-losses.html
*****
Spies like us: NSA to build huge facility in Utah
http://www.sltrib.com/news/ci_12735293
*****
International treaty gives foreign troops identity of American gun owners
http://wearechangecoloradosprings.org/blog/?p=594
*****
Federal Reserve Threatens Congress Over HR 1207
http://www.infowars.com/federal-reserve-threatens-congress-over-hr-1207/
*****
The U.S. Economy 7-10-2009, William Engdahl. Where we have been and where
we are heading...
http://www.youtube.com/watch?v=C9MNwb80Ja0
*****
Texas Straight Talk
http://www.house.gov/htbin/blog_inc?BLOG,tx14_paul,blog,999,All,Item%20not%20found,ID=090713_302
5,TEMPLATE=postingdetail.shtml
*****
Dick Cheney 'hid plans to kill al-Qaida operatives abroad'
http://www.guardian.co.uk/world/2009/jul/13/cheney-cia-al-qaida-assassinations
*****
CIA Vet: Agency Doesn't Need Secret Program To Target al Qaeda
http://tpmmuckraker.talkingpointsmemo.com/2009/07/cia_vet_agency_doesnt_n
eed_secret_program_to_targe.php?ref=fpa
*****
CLIMATE BILL SPELLS “SKYROCKETING” ENERGY RATES, UNEMPLOYMENT,
LESS FREEDOM

By Sarah Foster Posted 1:00 AM Eastern July 14, 2009 2009 NewsWithViews.com
http://www.newswithviews.com/NWV-News/news154.htm
*****

Trading giants: New kids on the block


http://www.thebanker.com/news/fullstory.php/aid/6401/Trading_giants:_New_kids_on_
the_block__.html?current_page=NO_PAGE
*****
Activists Push Ballot Initiative to End State Benefits for Illegal Immigrants and
Their US-Born Children
Monday 13 July 2009
http://www.truthout.org/071409X?n
*****
Call for Fed transparency grows louder

14
http://www.ft.com/cms/s/0/e0d6766a-70c6-11de-9717-00144feabdc0.html
*****
Bombshell: Orders revoked for soldier challenging prez
Major victory for Army warrior questioning Obama's birthplace
http://www.wnd.com/index.php?fa=PAGE.view&pageId=104009
*****

From a Fellow Subscriber:


Hi Mr. Chapman,
I just wanted to clear things out regarding MJ.
What he did to his face was sure horrible, but at the end of his career, he seamed like
he was fighting the same enemy you and everybody else is fighting against. Check this
video out:
http://www.youtube.com/watch?v=lhNEYhv7ADM
The media and the illuminist can certainly destroy anyone's life.

Michael Jackson The Pawn Part 1


http://www.youtube.com/watch?v=lhNEYhv7ADM
*****

From a Fellow Subscriber:


Conceal Carry Info
This one is for you Veterans. I have never heard of this before, but

I thought it was important enough to pass along here.

"I had a doctors appointment at the local VA clinic yesterday and


found something very interesting I would like to pass along. While
going through triage before seeing the doctor, I was asked at the end
of the exam, three questions.

(1 Did I feel stressed?)

(2 Did I feel threatened?)

(3. Did I feel like doing harm to someone?)

The nurse then informed me, if I had answered yes to any of the
questions, I would have lost my concealed carry permit as it would
have gone into my medical records and the VA would have reported it
to Homeland Security.

I am a Viet Nam vet and 15-year cc permit holder. Looks like they are going after us
vets."

Be forewarned and be aware. The Obama administration has gone on


record as considering veterans and gun owners as potential
terrorists. If you are a veteran, you've been warned.. If you know
veterans, please pass this on to them.

15
*****
From a Fellow Subscriber:
"You Have to Restructure The Entire Banking System"
--Excerpt from Meredith Whitney Interview
Hi Bob,
Meredith Whitney's comments seems to have been taken out of context in the media
and some important things she said were omitted.

She called her Goldman buy a bearish call because they will be making money off all
these debt issues from the financial problems. She made it clear (at the 10:30 mark)
this is a trading call, not an economic call. Then she said the Gov't was basically giving
money into the back door of the financials via the agency bailouts.

At the end she discusses the problems that the repeal of Glass Steagall caused: They
could make loans at razor thin margins by packaging them to other markets.

Modifications, etc. are only buying time. She says the only way to really fix this is the
entire banking system needs to be restructured.

She also called for unemployment to go up toward 13% (cut out of the online video).
She also mentioned $7 trillion of rotten assets still in the banking system.

The full video interview and summary is here and goes on for about 12
minutes:

http://seekingalpha.com/article/148621-some-observations-from-whitney-interview

*****
From a Fellow Subscriber:
Bob,
This deserves a piece in your newsletter. We all know how “dumbed down” the
average person is but I wonder how many people in the entire USA today would even
pass this exam, set over 100 years ago!!!!

My bet is less than 3%.

So how “dumbed down” are we???


What it took to get an 8th grade education in 1895...

Remember when grandparents and great-grandparents stated that they only had an
8th grade education? Well, check this out. Could any of us have passed the 8th grade
in 1895?

This is the eighth-grade final exam from 1895 in Salina, Kansas, USA It was taken
from the original document on file at the Smokey Valley Genealogical Society and
Library in Salina and reprinted by the Salina Journal..

8th Grade Final Exam:


Salina , KS - 1895

Grammar (Time, one hour)

16
1. Give nine rules for the use of capital letters.
2. Name the parts of speech and define those that have no modifications.
3. Define verse, stanza and paragraph.
4. What are the principal parts of a verb? Give principal parts of 'lie,' 'play,' and 'run'.
5. Define case; illustrate each case.
6 What is punctuation? Give rules for principal marks of punctuation.
7 - 10. Write a composition of about 150 words and show therein that you understand
the practical use of the rules of grammar.

Arithmetic (Time,1 hour 15 minutes)

1. Name and define the Fundamental Rules of Arithmetic.


2. A wagon box is 2 ft. Deep, 10 feet Long, and 3 ft. Wide. How many bushels of wheat
will it hold?
3. If a load of wheat weighs 3,942 lbs, what is it worth at 50cts/bushel, deducting 1,050
lbs for tare?
4. District No 33 has a valuation of $35,000. What is the necessary levy to carry on a
school seven months at $50 per month, and have $104 for incidentals?
5. Find the cost of 6,720 lbs. Coal at $6.00 per ton.
6. Find the interest of $512.60 for 8 months and 18 days at 7percent per annum.
7. What is the cost of 40 boards 12 inches wide and 16 ft long at $20 per metre?
8.. Find bank discount on $300 for 90 days (no grace) at 10 percent.
9. What is the cost of a square farm at $15 per acre, the distance of which is 640 rods?
10. Write a Bank Check, a Promissory Note, and a Receipt.

U.S. History (Time, 45 minutes)

1. Give the epochs into which U.S. History is divided


2. Give an account of the discovery of America by Columbus .
3. Relate the causes and results of the Revolutionary War.
4. Show the territorial growth of the United States .
5. Tell what you can of the history of Kansas .
6. Describe three of the most prominent battles of the Rebellion.
7. Who were the following: Morse, Whitney, Fulton , Bell , Lincoln , Penn, and Howe?
8. Name events connected with the following dates: 1607, 1620, 1800, 1849, 1865.

Orthography (Time, one hour) [Do we even know what this is??]

1. What is meant by the following: alphabet, phonetic, orthography, etymology, and


syllabication?
2. What are elementary sounds? How classified?
3. What are the following, and give examples of each: trigraph, subvocals, diphthong,
cognate letters, linguals?
4. Give four substitutes for caret 'u'.
5. Give two rules for spelling words with final 'e.' Name two exceptions under each
rule.
6. Give two uses of silent letters in spelling. Illustrate each.
7. Define the following prefixes and use in connection with a word: bi, dis, pre, semi,
post, non, inter, mono, sup.
8. Mark diacritically and divide into syllables the following, and name the sign that

17
indicates the sound: card, ball, mercy, sir, odd, cell, rise, blood, fare, last.
9. Use the following correctly in sentences: cite, site, sight, fane, fain, feign, vane ,
vain, vein, raze, raise, rays.
10. Write 10 words frequently mispronounced and indicate pronunciation by use of
diacritical marks and by syllabication.

Geography (Time, one hour)

1 What is climate? Upon what does climate depend?


2. How do you account for the extremes of climate in Kansas ?
3. Of what use are rivers? Of what use is the ocean?
4. Describe the mountains of North America .
5. Name and describe the following: Monrovia , Odessa , Denver , Manitoba , Hecla ,
Yukon , St. Helena, Juan Fernandez, Aspinwall and Orinoco .
6. Name and locate the principal trade centers of the U.S. Name all the republics of
Europe and give the capital of each.
8. Why is the Atlantic Coast colder than the Pacific in the same latitude?
9. Describe the process by which the water of the ocean returns to the sources of
rivers.
10. Describe the movements of the earth. Give the inclination of the earth.

Gives the saying 'he only had an 8th grade education' a whole new meaning,
doesn't it?!
Also shows you how poor our education system has become.
*****

May God Bless Shifty Powers.

Memorial Service: you're invited.

We're hearing a lot today about big splashy memorial services.

I want a nationwide memorial service for Darrell "Shifty" Powers.

Shifty volunteered for the airborne in WWII and served with Easy Company of the
506th Parachute Infantry Regiment, part of the 101st Airborne Infantry. If you've
seen Band of Brothers on HBO or the History Channel, you know Shifty. His character
appears in all 10 episodes, and Shifty himself is interviewed in several of them.

I met Shifty in the Philadelphia airport several years ago. I didn't know who he was at
the time. I just saw an elderly gentleman having trouble reading his ticket. I offered to
help, assured him that he was at the right gate, and noticed the "Screaming Eagle",
the symbol of the 101st Airborne, on his hat.

Making conversation, I asked him if he'd been in the 101st Airborne or if his son was
serving. He said quietly that he had been in the 101st. I thanked him for his service,
then asked him when he served, and how many jumps he made.

Quietly and humbly, he said "Well, I guess I signed up in 1941 or so, and was in until
sometime in 1945, " at which point my heart skipped.

18
At that point, again, very humbly, he said "I made the 5 training jumps at Toccoa, and
then jumped into Normandy, do you know where Normandy is?" At this point my heart
stopped.

I told him yes, I know exactly where Normandy was, and I know what D-Day was. At
that point he said "I also made a second jump into Holland , into Arnhem ." I was
standing with a genuine war hero . . . . and then I realized that it was June, just after
the anniversary of D-Day.

I asked Shifty if he was on his way back from France , and he said "Yes. And it's real
sad because these days so few of the guys are left, and those that are, lots of them
can't make the trip." My heart was in my throat and I didn't know what to say.

I helped Shifty get onto the plane and then realized he was back in Coach, while I was
in First Class. I sent the flight attendant back to get him and said that I wanted to
switch seats. When Shifty came forward, I got up out of the seat and told him I wanted
him to have it, that I'd take his in coach.

He said "No, son, you enjoy that seat. Just knowing that there are still some who
remember what we did and still care is enough to make an old man very happy." His
eyes were filling up as he said it. And mine are brimming up now as I write this.

Shifty died on June 17 after fighting cancer.

There was no parade.

No big event in Staples Center .

No wall to wall back to back 24x7 news coverage.


No weeping fans on television.
And that's not right.
Let's give Shifty his own Memorial Service, online, in our own quiet way. Please
forward this email to everyone you know. Especially to the veterans.
Rest in peace, Shifty.

"A nation without heroes is nothing."


Roberto Clemente

*****
From a Fellow Subscriber:
Hi Bob,

Thank you for taking my question to be answered on Melody's program. On


Monday, I discovered that one of my credit card accounts had been closed by
the credit card company. This company is none other than Chase (JPMorgan
Chase). The actual credit card was original issued to me by Washington
Mutual in 2006. I had a credit limit of $2500, $1900 was a balance, yet I never
missed a payment in 2+years, always paying double the minimum. The
account representative told me that the decision to close my account was due
to the fact I had a low available credit ($500) and other information provided by

19
credit bureaus. My credit is solid, a near 700 score. Is this just smoke and
mirrors being used by Chase to conceal the real fact that the company is in
serious trouble and they are doing everything they can to give the appearance
that things are fine while behind the scenes closing the accounts of good
responsible customers? Thanks for your time and concern, Bob. I'll be
listening in for your response. God bless you and yours!
*****

COMMODITIES
Gold ended last week down 2.1% to $913 (up 3.5% y-t-d). Silver sank 5.5% to
$12.67 (up 12.1% y-t-d). August Crude dropped $7.04 to $59.69 (up 34% y-t-d).
August Gasoline sank 7.2% (up 56% y-t-d), and August Natural Gas fell 6.8% (down
40% y-t-d). September Copper declined 3.9% (up 57% y-t-d). August Wheat declined
1.9% (down 15% y-t-d), and August Corn fell 5.1% (down 19% y-t-d). The CRB index
dropped 5.0% (up 1.7% y-t-d). The Goldman Sachs Commodities Index (GSCI) sank
7.2% (up 15.9% y-t-d).

GOLD, SILVER, PLATINUM AND PALLADIUM


Based on the Memorandum of Understanding singed in January this year, The
Tokyo Commodity Exchange (TOCOM) and Tokyo Stock Exchange Group (TSE) have
launched "Inter-market Cooperation Workshop" in efforts to improve convenience for
participants of the both markets, and studied to reinforce cooperation between the
commodity market and the stock market.
In light of the study at the workshop, TOCOM has added a "physically backed
commodity ETF" as a possible physical for EFP (Exchange of Futures for Physicals)
transactions at the exchange, which allows seller and the buyer, who holds agreement
for physical transactions, to conclude the contract s in the commodity futures market
without continuous trading of physicals.
Therefore, the “SPDR® Gold Shares”, physically backed commodity EFT listed
on the TSE, which has a correlation with the gold spot price, can now be used as a
physical for EFP transaction on TOCOM’s Gold market.
Thanks to this new arrangement, it is expected that the link between TSE's
SPDR(r) Gold Shares market and the TOCOM Gold market will be strengthen and that
the price reliability, as well as the liquidity of both markets will be enhanced.
US Mint AGAIN Suspends Gold Coin Sales - Is USA Really Out of Gold?
I may have missed one or the other suspension of gold coin sales by the US
Mint. But here we go again: Checking the online store of the US Mint I came across
notices of delays and suspensions with golden Eagles and Buffaloes with waiting times
between weeks and further notice.
The US Mint press room has entirely omitted this confirmation about the
tightness of the bullion market which enjoys upward momentum thanks to the
thousands of big problems the world faces.
Checking on 24kt Buffalo gold coins the Mint saddened me with this statement:
Production of United States Mint 2009 American Buffalo Gold Proof Coins has been
delayed because of the limited availability of 24-karat gold blanks. The 2009 American
Buffalo One-ounce Gold Proof Coin is scheduled to go on sale in the second
half of the 2009 calendar year after an acceptable inventory of 24-karat gold blanks
can be acquired. The release date, once established, will be posted to the 2009
Scheduled Products Listing.
As a result of the numismatic product portfolio analysis conducted last fall,

20
beginning in 2009, American Buffalo Gold Proof fractional coins and the four-coin set
are no longer available. Additionally, the United States Mint will no longer offer
American Buffalo Gold Uncirculated Coins.
The most economical way to buy gold coins, US gold eagles is blocked as well:
Production of United States Mint American Eagle Gold Proof and Uncirculated Coins
has been temporarily suspended because of unprecedented demand for American
Eagle Gold Bullion Coins. Currently, all available 22-karat gold blanks are being
allocated to the American Eagle Gold Bullion Coin Program, as the United States Mint
is required by Public Law 99-185 to produce these coins “in quantities sufficient to
meet public demand . . . .”
The United States Mint will resume the American Eagle Gold Proof and
Uncirculated Coin Programs once sufficient inventories of gold bullion blanks can be
acquired to meet market demand for all three American Eagle Gold Coin products.
Additionally, as a result of the recent numismatic product portfolio analysis, fractional
sizes of American Eagle Gold Uncirculated Coins will no longer be produced.
Not being able to suppress a smile I am left with a few questions:
If gold is soooo cheap why can't the US Mint risk buying those ounces on the free
market?
Wasn't it the IMF who said it's gonna go and sell some of its yellow bars? Hey, this
could become innovative: See the first ever gold deal done by dark pools in order to
keep the public in the dark for some time longer.
If nobody wants gold and sees it as relic of history (like the history of price
stability), what keeps the Mint from entering what it sees a buyers market?
Is this maybe blatant price manipulation because we don't know about the size of
the Mint's backlog and order book?
Check ebay prices here to see what gold savers are willing to pay. I cannot see
any lessening demand for the physical. Is the Mint maybe waiting for Goldman Sachs'
summer attack on gold bullion prices, using as much short futures contracts as can be
stored in their computers?
They may run in a problem with this strategy, though. Investors worldwide have
long begun to snap every gold bar they can get their hand on. As always ahead of
hyper inflation people will scratch everything together to get just that other ounce of
security.
Russian President Dmitry Medvedev said on Friday he had been given
an example coin of a possible global currency at the G8 summit in Italy,
adding that all aspects of reserve currencies were under discussion.
"We are discussing both the use of other national currencies, including the
ruble, as a reserve currency, as well as supranational currencies," the Russian leader
said at a news conference following the G8 summit.
Medvedev showed reporters an example of a coin of a supranational currency,
which he called a "united future world currency."
"This is a symbol of our unity and our desire to settle such issues jointly,"
Medvedev said, adding that the coin had been made in Belgium.
He also expressed the hope that a day would come when something of the
kind would be used for payment
Workers in South Africa's gold sector rejected the latest offer for a pay raise of
between 8 percent and 10 percent and vowed to soon escalate the dispute, the
National Union of Mineworkers (NUM) said on Tuesday.
Three South African unions are holding talks with gold producers under the
guidance of a mediator after failing to agree on wage increases. The unions have
warned they could strike if negotiations fail.

21
"NUM has this morning rejected the Chamber of Mines' offer of between 8 and
10 percent from gold employers and will escalate the dispute on July 21," NUM
spokesman Lesiba Seshoka said.
The International Council of Shopping Centers and Goldman Sachs Retail
Chain Store Sales Index fell 0.9% in the week ended Saturday from the week before
on a seasonally adjusted, comparable-store basis.
On a year-on-year basis, retailers' sales declined 0.7% in the latest week.
Monday was unusual – gold and silver rose. Spot gold closed up $10.00 to $922.40
and the August contract was up the same. Spot silver rose $0.17 to $12.79 and
September was up $0.14. Gold open interest rose 1,206 contracts, as silver OI rose
1,505 to 100,314. The HUI rose 6.53 to 320.42 and the XAU rose 2.26 to 132.25. AEM
rose 2.59%, or $1.27 to $50.38; GG rose 1.64%, or $0.54 to $33.53; SSRI rose 4.66%,
or $0.79 to $17.73 and MFN rose 5.31%, or $0.38 to $7.54.
The yen fell .0054 to $.9278; the euro rose .0017 to $1.3973; the pound rose .0015 to
$1.6209; the Swiss franc rose .0005 to $1.0833; the Canadian dollar rose .0072 to
$86.73 and the USDX fell .17 to 80.07.
This past week GLD saw a weekly net reduction of 10.74 tons of gold to total
1,108.81 tons. What is surprising is that so little gold was sold considering gold fell
$19.26, or 2.1% on the week. Since June 3rd, gold is off $71, or 7.2%, whereas only
24.22 tons, or 2.1% was sold.
Black Rock’s ETF for silver SLV has fallen $3.50 or 22%, yet since June 3rd the
SLV holdings have held steady.
The big question is whether new CFTC Commissioner Gary Gensler will
enforce the exchange rules on aggregate position limits. Gensler previously worked
with Robert Rubin suppressing gold and silver prices. He is well aware of the overly
large positions held by just three banks, which any professional realizes are
suppressing prices. We do not see Gensler enforcing the rules and that the crimes will
continue until prices blow up and the banks get wiped out, which they eventually will,
probably from the derivative side of the contracts.
This not only applies to gold and silver, but other commodities as well,
particularly oil and gas. This is not only criminal, but it serves political reason as well.
Ultimately prices will rise to reach equilibrium for whatever reason and we are fast
reaching that point. That is why HR 1207 is so important. Once what the Fed is doing
is exposed it will spread to other areas such as the CFTC, SEC and the fascist
partnerships between government, Goldman Sachs, JP Morgan Chase and Citigroup.
On July 7,2009, three banks held net silver shorts of 31,880 contracts or 4,958 tons.
The total short of all 30 commercials was 37,432. Two banks hold 84.2% of that short
position. From June 2nd to July 7th, these banks increased their shorts by 4,402
contracts as silver fell from $15.07 to $13.13, expediting the downside, and rigging the
market. Yet, the CFTC did nothing to stop them. As the additional shorts were applied
open interest fell 4,610 contracts, amplifying the downside move.
What silver players should be doing here is buying. Silver could easily move straight
back to $16.00 an ounce and maybe the CFTC just might do something positive
toward a free and open silver market. Silver stocks – inventories – worldwide are the
lowest in 100 years. Thus silver is very under valued.
Greenlight Capital Inc., the $5 billion hedge-fund firm run by David Einhorn, told
investors it switched all of its holdings in a gold exchange-traded fund into bullion
during the second quarter.
“At a minimum this will provide some savings as the costs of storing gold are less than
the fees” for the SPDR Gold Trust, the New York-based firm said yesterday in a letter
to investors.

22
Einhorn, 40, told clients in January he was buying gold for the first time amid
the threat of inflation from higher government spending. The firm, started in 1996, held
4.2 million shares of SPDR Gold Trust in the first quarter, making the gold- backed
ETF its biggest holding. Gold has climbed 5.8 percent this year.
The firm’s Greenlight Capital LP fund gained 16.3 percent in the second
quarter, bringing its return this year to 21.5 percent boosted by investments in Ford
Motor Co. debt, according to the letter, a copy of which was obtained by Bloomberg
News. The fund lost 23 percent last year.
Hedge funds returned an average 9.4 percent this year through June after
losing 19 percent in 2008, according to Hedge Fund Research Inc. in Chicago.
Steve Bruce, a spokesman for Greenlight, declined to comment on the letter.
Greenlight said its investments in stocks it expects to rise were “sparse” in the
second quarter, and that it currently has “almost no net long exposure” to equities.
“This comes from our bottom-up inability to find many good opportunities,” the
firm said. “We are very cautious of the significant headwinds we still believe the
economy faces.”
Greenlight said it had bought reinsurance stocks including Aspen Insurance
Holdings Ltd. during the second quarter.
“The reinsurance industry suffered a double whammy last year due to storm
damage and investment losses,” the firm said. “This appears to be leading to an
improved competitive environment and higher returns on capital.”
Greenlight said its largest holdings at the end of the quarter were Arkema SA, a
chemical maker in Paris; Criteria CaixaCorp, a Barcelona-based holding company for
Spain’s largest savings bank; the debt of Dearborn, Michigan-based Ford; gold; and
Pfizer Inc., the world’s biggest drug maker.
Hedge funds are private, largely unregulated pools of capital whose managers
can buy or sell any assets, bet on falling as well as rising prices and participate
substantially in profits from money invested. [Could it be that Greenlight discovered
that GLD does not have the gold they say they have?]
Last night Bill O’Reilly, in a segment about ‘connected firms’ profiting from cap
& trade, stated Goldman made $2 billion in 2008 but paid no federal income taxes.
On Tuesday, spot gold rose again, up $0.30 to $922.70 after having been up $5.40
and around a plus $4.00 for most of the day,. The August contract rose $2.10. Spot
silver rose $0.04 to $12.83 and September rose $0.10. Gold open interest rose 1,106
contracts to 369,221, as silver OI fell 3.80 to 99,934. The HUI rose 7.65 to 328.07 and
the XAU rose 2.63 to 134.88. AEM rose 2.06%; or up $1.04 to $51.42; GG rose 1.94%,
or $0.65 to $34.16; SSRI rose 1.13%, or $.070 to $17.93 and MFN rose 1.06%, or up
$0.08 to $7.62. The ECB reported one central bank sold two million euros of gold or
0.09 tons.
The yen fell .0060 to $.9330; the euro fell .0045 to $1.3220; the pound rose .0001 to
$.1,6270; the Swiss franc fell .0069 to $.0914; the Canadian dollar rose .0132 to
$.8805 and the USDX rose .12 to 80.17.
Oil fell $0.31 to $59.37; gas was unchanged at $1.64 and natural gas rose $0.019 to
$3.45. Copper rose $0.17 to $2.29; platinum rose $15.70 to $1,1133 and palladium
rose $7.65 to $318.07. The CRB rose $2.59 to $236.20.

*****
The Game Changer?
By: Theodore Butler
http://news.silverseek.com/TedButler/1247586939.php

23
*****
From a Fellow Subscriber:
Ending last week with nearly 119 million ounces of silver (Moz) in the four
COMEX depositories, this week the word has been get your silver while you can.
Slightly less than 2 million ounces of silver has been withdrawn from COMEX stocks in
three days (July 6-8), with eligible silver dropping from 55.4 moz to 53.5 moz.
Significant withdraws were experienced by HSBC Bank (HBC) (down 1.26 Moz) and
Sottia Mocatta (down 546,000 oz). Brinks also registered a withdraw of 30,000 oz of
silver. The reduction is only 2% of total stocks that COMEX claims, however it is nearly
5% of eligible stocks that can be used for futures redemption. The remainder is
registered, but is already allocated (owned) by other investors who are storing it in the
vaults.
COMEX futures contracts however have been let for 429 Moz as of July 6 (vs
53 Moz of "eligible" silver in the vaults. If you add the future spreads, then COMEX has
522 Moz of contracts out vs 53 Moz of silver to cover those contracts.
For leverage fans, that is 10 oz of silver under contract for every ounce of silver
available. If you count the fact that COMEX allows you to purchase a contract with
10%, then actual leverage vs physical metal held by COMEX is closer to 100 to 1.
That should answer the question as to why someone would refer to it as
"paper" silver. It should also generate a question as to why so much silver is starting to
flow out of the COMEX.
*****
From a Fellow subscriber:
What are your thoughts on this article?
WASHINGTON, July 10 (Reuters) - The Commodity Futures Trading Commission will
move aggressively to rein in excessive speculation in the energy and metals markets
by focusing largely on expanding their existing authority, and could have new
regulations in place as early as late October.
"We're looking at a pretty fast time line," Bart Chilton, a CFTC Commissioner, said in
an interview. "We're going to use our authority to the fullest extent possible. That
doesn't mean we're going to be draconian or go too far."
In response to recent swings in oil prices, the CFTC announced this week it was
considering clamping down on big market players by implementing position limits on all
commodity futures contracts, focusing especially on energy and metals such as gold
and silver.
Chilton said while he couldn't ultimately predict what the CFTC will do, he would like to
put out proposed rules in September, open them up to public comment and implement
them by late October or November.
[The best thing to come out of the CFTC in 25 years]

*****

From a Fellow Subscriber:


Statement of CFTC Commissioner Bart Chilton on Speculative Limit Hearings and
Increased Transparency - July 7, 2009

These hearings are an excellent starting point to address a significant issue, that is,
how to ensure that speculative activity in the marketplace does not distort prices. First,
we need to look at the issue of spec limits generally; we've got federally-set spec limits

24
in ags, but not in other physically delivered commodities, like oils and metals, and we
need to see if it's appropriate for the CFTC to set limits in those commodities as well.
Oil, for example, is certainly as important a commodity as wheat, and, as we saw last
summer when the price of oil skyrocketed out of control, federally-set spec limits may
have been able to provide some needed "speed bumps." Second, we need to look at
whether exemptions that have been granted with regard to these limits are
appropriate. This involves a review of our fundamental concept of "bona fide hedging";
specifically, should that include entities that are primarily involved in financial hedging,
and not in the actual commercial dealings in underlying commodities? We need to drill
down on this issue, and figure out how best to craft this definition to protect consumers
and markets. We need to have an in-depth and comprehensive analysis of this, to
ensure that appropriate speculative activity is permitted, but that activity causing
uneconomic price moves is prohibited.

On enhanced transparency issues, that is improved COT reports and the swaps
report, I want to commend our chairman for moving ahead in this venue as well. I'm
glad to see he has announced a needed revamping of our Commitment of Traders
reports, which is long overdue. This is intended to 1) separate swaps dealers out of the
current commercial category, 2) separate hedge funds and other managed accounts
out of the current non-commercial category, 3) include data from foreign contracts that
are "linked" to domestically traded contracts, and 4) include data from significant price
discovery contracts. I look forward to getting comment from the public as to what they
think of this new report, and whether additional improvements can be made. Lastly,
until we have authority granted by Congress increasing our ability to look into "dark
markets," I think we need to continue to improve our information gathering related to
our swaps "special call"; this information is only as useful and reliable as the data we
receive, and I believe we must also continue to improve our scrutiny of this information
to ensure its utility to us and to the marketplace.

*****
Commodity exchanges can dump gold debts on ETFs
The Alchemists
By Adrian Douglas
Saturday, July 11, 2009

In the Middle Ages alchemists toiled in vain to transmute lead into gold. One wonders
why they used such an expensive starting material, such as lead, when modern
alchemists in the gold world have succeeded in transmuting paper into gold. This
article reveals the anatomy of a scam that has been perpetrated on investors and goes
a long way to explain and tie together developments in the precious metals markets in
recent years.

As many readers may know, I have recently been reporting on how delivery notices at
the COMEX cannot be reconciled with movements of metals from and into the
warehouse. Clearly these are not going to match on a daily basis, just as orders into a
factory will not match shipments out on any given day, as there is a time lag. But when
averaged over a month, the "flow" of metal inventory should be comparable to the
delivery notices issued. This is just basic accounting. But I have observed that
reconciliation is almost impossible with the COMEX data. The only explanation I could
think of is that settlement of contracts must be bypassing the warehouse. But how

25
could this be possible, as I thought all contracts had to be delivered via a COMEX
registered warehouse?
The COMEX states:

Delivery:
Gold delivered against the futures contract must bear a serial number and identifying
stamp of a refiner approved and listed by the Exchange. Delivery must be made from a
depository licensed by the Exchange."

This seems unequivocal until you find this exception:

Exchange of Futures for Physicals (EFP)

The buyer or seller may exchange a futures position for a physical position of equal
quantity. EFPs may be used to either initiate or liquidate a futures position.

The COMEX trading rulebook clarifies further:

104.36 Exchange of Futures for, or in Connection with, Product (Physical)

(A) An exchange of futures for, or in connection with, product (EFP) consists of two
discrete, but related, transactions; a cash transaction and a futures transaction. At the
time such transaction is effected, the buyer and seller of the futures must be the seller
and the buyer of a quantity of the physical product covered by this Section. The
quantity of physical product must be approximately equivalent to the quantity covered
by the futures contract.

So what this means is that contracts can essentially be settled without going through
the COMEX warehouse. Futures contracts and a physical commodity equivalent can
be exchanged outside of the exchange and an EFP form can be filed to the clearing
department at the COMEX. What's more, the physical commodity doesn't have to meet
the specification of the COMEX Gold Contract of being a 100 troy ounce bar or three
1Kg bars of .995 fineness.

So what can be delivered as the physical gold commodity?

This is where it gets very interesting. On February 18, 2005, the NYMEX, parent of the
COMEX, issued this announcement:
http://www.cftc.gov/files/submissions/rules/selfcertifications/2005/rul0...

Exchange Rule 104.36, which governs exchange of futures for physicals ('EFP')
transactions on the COMEX Division, refers to a 'physical commodity' as one of the
required components of an EFP transaction but also indicates that the physical
commodity need only be substantially the economic equivalent of the futures contract
being exchanged.

The purpose of this Notice is to confirm that the Exchange would accept gold-backed
exchange-traded funds ('ETF') shares as the physical commodity component for an
EFP transaction involving COMEX gold futures contracts, provided that all elements of
a bona fide EFP pursuant to Exchange Rule 104.36 are satisfied.

26
Thus, acceptable gold-backed and exchange-traded ETF funds include, but are not
limited to, the iSharesCOMEX Gold Trust (ticker: IAU), which began trading on the
American Stock Exchange on January 28, 2005.

The trust is an exchange-traded fund that provides a means of obtaining a level of


participation in the gold market through the securities market. The trust shares are
intended to constitute a means of making an investment similar to an investment in
gold. Each trust share represents a fractional undivided beneficial interest in the trust's
net assets which consist primarily of gold held by a custodian on behalf of the trust.
The shares of that trust are expected to reflect the price of gold less the trust's
expenses and liabilities.
----
So the gold ETF with the symbol IAU started trading on January 28, 2005, and three
short weeks later the shares of IAU became equivalent to real physical gold in the
eyes of the COMEX for delivery against futures contracts in an EFP transaction!

If that doesn't blow your socks off, I don't know what will.

Also note that the ETF mentioned is a COMEX product! How convenient!

Where are the regulators? This ETF is not equivalent to gold. Note the description:
"Each trust share represents a fractional undivided beneficial interest in the trust's net
assets which consist primarily of gold."

All that is being guaranteed is that each share is a fraction of the ETF assets. The net
assets could be 1 oz of gold while the face value of the total shares sold could be 100
million ounces!

The notice does not restrict which gold ETFs are eligible, so clearly the infamous GLD
is also eligible to be considered as good as physical gold in an EFP transaction.

Right from the inception of the gold ETFs GLD and SLV, the Gold Anti-Trust Action
Committee has deduced from studies of the ETF prospectuses that these funds very
likely do not hold gold and silver to fully back the issued shares because the
prospectuses don't categorically require it. (See footnotes 1 and 2.) In fact, the ETFs
may have no gold or silver at all.

What seemed bizarre to GATA at the time was that the two mega-short anti-gold
investment banks, JPMorgan and HSBC, would be involved in the launch and
operation of precious metal investments that, on the face of it, would create huge
investor demand for the very metals in which the banks hold massive and clearly
manipulative concentrated short positions.

Now all becomes clear. The system is the ultimate alchemy. If ETF shares are NOT
backed by gold but are accepted by the COMEX as equivalent to physical gold ...
presto! You have turned paper into gold -- and paper is a lot cheaper than lead.

A futures market is supposed to provide price discovery for a commodity. In the gold
market this notion has been hijacked because settlement can be made with a
derivative instrument, such as an unbacked or partially backed ETF share. If that
derivative instrument is not backed by gold on a 1:1 basis the scheme allows an

27
artificial apparent increase in the supply of gold and so distorting price discovery
toward lower prices.

Such a scam would be in grave danger of becoming exposed if anyone knew the true
inventory condition of the vaults of the ETFs. That problem is easily solved by having
HSBC be the custodian of GLD and JPMorgan be the custodian of SLV.

I have not found anywhere that COMEX accepts ETFs as an equivalent to physical
silver for an EFP transaction, which probably explains why silver warehouse
movements are much larger than those of gold, and perhaps may indicate that
physical silver is the cartel's Achilles heel.

We have all wondered how GLD could have amassed a stunning 1,100 tons of gold in
less than five years without the gold price exploding. This represents buying 10
percent of all global gold output each year. What's more, in the last nine months the
ETF holdings almost doubled, adding approximately 500 tonnes or 23 percent of
annual global production. And this when the signatories to the second Washington
Agreement on Gold have reduced their gold sales to a trickle, from 500 tonnes per
year. If the GLD shares are unbacked or only partially backed by gold, the alleged
1,100-tonnes gold holding would be easy to achieve with just the use of a printing
press for the share certificates.

In looking at COMEX reports the EFP transactions are reported under "Other Volume."
This category is huge compared to delivery notices. For example, on July 8, 2009, the
gold price fell by $20. Looking at the relevant COMEX report --
http://www.cmegroup.com/trading/energy-metals/files/cmxopint070809.pdf

-- on Page 4 "Other Volume" is 9,540 contracts or 954,000 ounces, while the much
more visible delivery notices were only 17 contracts or 1,700 ounces! Judging from
many reports the "Other Volume" category is orders of magnitude larger than the
delivery notices.

What I don't know is how many of these trades are settled with the COMEX-approved
gold equivalent ETFs or even if any are. I have sent an email to the COMEX to ask
them. I won't hold my breath for a reply. My guess is that a lot of EFPs are settled this
way, which would account in part for the meteoric issue of GLD shares. But the
COMEX should be transparent; it should be required to publish exactly what is being
traded as "Other Volume." In fact if the COMEX wants to be above suspicion it should
insist in its rules that EFPs must be settled with gold that meets exactly the COMEX
gold contract specification. The EFP then would facilitate delivery instead of facilitating
a change in delivery obligations.

Why was it necessary to introduce a mechanism to exchange ETF shares in lieu of


physical gold? Where there is smoke there is fire.

What I don't know is how many of these trades are settled with the COMEX-approved
gold equivalent ETFs. I have sent an email to the COMEX to ask them. I won't hold my
breath for a reply. My guess is that a lot of EFPs are settled this way, which would
account in part for the meteoric issue of GLD shares.

28
Adding credence to this supposition is that GLD has gained wide acceptance with
mutual funds, pension funds, and university endowment funds. Many sophisticated
investors believe ETFs to be equivalent to investing in bullion. This makes this fiat
paper bullion scam easy to perpetrate.

It would appear that the COMEX gold warehouse is merely a window dressing
displaying an almost static 2.5 million ounces of dealer-owned gold inventory. But it
would appear the vast majority of settlement occurs out of the average investor's view
AND, therefore, out of the view of the regulators.

This means that the COMEX is not what it seems. Delivery for an EFP only needs to
be "substantially the economic equivalent" of the deliverable commodity! A default
could occur at any time if this sorcery of swapping paper for paper suffered a serious
setback.

The members of the Gold Cartel must be very proud of themselves for succeeding
where the ancient alchemists failed. In fact, they are so proud they decided they didn't
need to limit the scam to the COMEX. They have implemented it on the Tokyo
Commodity Exchange too.

On October 29, 2008, the TOCOM made the following announcement:


----
Based on the Memorandum of Understanding signed in January this year, The Tokyo
Commodity Exchange (TOCOM) and Tokyo Stock Exchange (TSE) have launched
'Inter-market Cooperation Workshop' in efforts to improve convenience for participants
of both markets, and studied to reinforce cooperation between the commodity market
and the stock market.

In light of the study at the workshop, TOCOM has added a 'physically backed
commodity ETF' as a possible physical for EFP (Exchange of Futures for Physicals)
transactions at the exchange, which allows seller and the buyer, who holds agreement
for physical transactions, to conclude the contracts in the commodity futures market
without continuous trading of physicals.

Therefore, the SPDR Gold Shares, physically backed commodity ETF listed on the
TSE, which has a correlation with the gold spot price, can now be used as a physical
for EFP transaction on TOCOM's gold market.

Thanks to this new arrangement, it is expected that the link between TSE's SPDR
Gold Shares market and the TOCOM gold market will be strengthened and that the
price reliability, as well as the liquidity of both markets, will be enhanced.
For inquiries about this news release, please contact:
Planning Department, The Tokyo Commodity Exchange

http://www.tocom.or.jp/news/2008/20081105-1.html
Notice the comment that the "liquidity of both markets will be enhanced." There can be
little doubt about that! They can print as many ETF shares as they want and they can
then settle as many EFPs as they want ... and guess what happens to the price of gold
with such an apparent increase in liquidity. Yes, it will be suppressed. As they said in
the release, "the price reliability will be enhanced."

29
Now that reminds me of Alan Greenspan, who said, "Central Banks stand ready to
lease gold in increasing quantities should the price rise." But why get the central banks
to lease the real stuff when an ETF can print up an IOU that the unsuspecting investor
will accept to be as good as gold?

Does this mean that the alchemists of the Gold Cartel have discovered the Elixir of Life
for their gold suppression scheme so that it will go on forever?

No, absolutely not. Faith in anything paper is going out of fashion. California is shortly
going to discover that people don't like IOUs. Central banks outside of the G7
countries are buying gold, and I am sure they know about this alchemy. I doubt that the
Chinese will accept GLD shares for settlement of futures contracts.

If you want an investment in bullion, then make sure you have an investment in bullion.
In my opinion what I have presented here, and what other analysts have written,
indicate that GLD and SLV are not investments in bullion. They are mere IOUs in
bullion. Take physical delivery of gold and silver from the COMEX. They have only 2.5
million ounces of the real stuff in the gold inventory. That is a paltry $2.3 billion at
today's price.

The Gold Cartel is desperate to suppress gold and keep the dream of a "strong dollar"
alive along with maintaining low interest rates by using a mechanism described by
Professors Summers and Barsky in their research paper "Gibson's Paradox and the
Gold Standard." The London Gold Pool used real gold to try to suppress the gold
market, and it failed. The paper IOU is going to be even less successful. Imagine what
will happen to the gold price when the holders of the paper IOUs go looking for
physical gold instead. The Gold Cartel has built a dam on the river of physical gold
demand, thinking that it is clever enough to defy the laws of supply and demand. Wait
until the dam bursts to experience gold fever such has never been seen before.

Buy real gold and silver before the dam bursts!


*****

CANADA
Canadian Finance Minister Jim Flaherty’s budget will remain in deficit through
2014, longer than advertised, generating shortfalls of C$156 billion ($134bn) over the
next five years, according to a new report.
May new motor vehicle sales up 1%.
Toronto Dominion Bank informs depositors that any positive credit balance in
any of your accounts can be applied against any debt or liability you owe on any
account. We can offset any positive balance against any such debt or liability in any
manner and at ant time we consider it necessary without notice. That is called ‘banking
fascism.’
We are often asked how is Canada’s economy going to fare in the future? The
answer is they will suffer, but not to the extent that the US will.
Unemployment has risen above 8.5% to the worst level in 11 years. Ontario,
which we predicted, has lost 14% of its manufacturing jobs and they’ll lose lots more.
Due to delayed oil sand projects Alberta’s unemployment has doubled and it too will
continue to grow. As a result of this and poor derivative investments Canada’s banks
are facing rough times. The entire world is going to be affected; no one will escape
what is ahead.

30
*****
From a Fellow Subscriber:
Stolen Code Bob, I heard you on the Alex Jones program on Friday concerning GS
and the stolen code. I also think they were shaving fractions on trades. If the
government did in fact give them the code (and I do believe they probably did) to do it,
that\'s huge obviously. I'm pretty sure I know why they did it. You could consider it an
unauthorized Tobin (Toben?) Tax on transactions to give the government the
operating funds they need because the tax base has been decimated. In 2004, it was
revealed that tax receipts were at their lowest point since the 1950\'s and the economy
hasn't gotten any better since - it's gotten worse. Scroll down to the section on the right
hand side under the picture of John Linder. Listen to the audio clip of the CBO
Director. http://www.channelingreality.com/The_Coup/admin_coup.htm
At the time when I recorded that audio clip, my analysis was that the IRS computer
system had been sabotaged (I'm a Systems Analyst). As I say on that page, the
method of tax receipt reporting to the Congress gave a window of a couple of years to
cover up the decimation of the tax base. The injection of repatriated offshore profits in
2005 gave them an extra few years to perpetuate the fraud. That would put the timing
of the next crisis sometime between 2007 and 2008. That would correspond to the
timing of GS getting the code from the government to shave fractions from trades. The
part that makes me shake in my boots is that whoever controls those surreptious funds
(GS or the CIA), also controls the government - covertly by definition. (btw... Just
because the Congress passes legislation for hundreds of billions of dollars doesn't
mean those funds are spent. I quit believing things were real sometime between 2003
and 2004 when the funds allocated to the states for Homescam security were not
spent because the rules were written in such a way as to deny the states the money
they were promised. In other words, the feds defrauded the states).
*****

EUROPE
Liechtenstein initialed a deal with Germany to drop bank secrecy laws starting
next year that until now have prevented cooperation in tax probes, one of the first
concrete outcomes of promises that offshore tax havens across Europe made this year
to open up their bank sectors.
Friday's agreement in Berlin was triggered by pressure ahead of April's
meeting of Group of 20 nations, which had threatened to produce a blacklist of alleged
tax havens for targeting with sanctions. Promises made by Lichtenstein and other
offshore banking centers just ahead of the meeting caused G-20 leaders to back off,
but the threat of sanctions remains if bilateral cooperation deals aren't reached.
A Liechtenstein government spokesman said the German accord follows a
model recommended by the Organization for Economic Cooperation and
Development, an inter-government think tank based in Paris. Friday's pact still needs
to be signed formally and ratified to take effect.
The pact doesn't allow German tax investigators to trawl Liechtenstein bank
records searching for possible offenders, the spokesman said. That means banks in
Liechtenstein will offer data on clients only in response to specific tax fraud
investigations by foreign governments.
A spokeswoman for the German Finance Ministry said, "The initialing of the
agreement confirms the success of our international effort to obtain cooperation in tax
investigations based on OECD guidelines."

31
Liechtenstein and the U.S. signed a similar accord in December. Talks are
under way for a tax-information agreement with the U.K., Liechtenstein said, adding it
hopes to reach an accord with the European Union as a whole that would overlap, but
not replace, its German pact.
An accord with the EU would allow Liechtenstein to cooperate with tax
investigations in 27 countries, Liechtenstein said. Germany is surrounded by smaller
jurisdictions such as Liechtenstein, Luxembourg, Austria and above all Switzerland
that offer tighter bank secrecy laws that are attractive to German citizens looking for
ways to hide income from tax authorities in Berlin.
Industrial output in the 16 nations that use the euro sank 17 percent in May
from a year earlier, the EU statistics agency said Tuesday, a somewhat milder drop
than in the previous two months.
Demand for European goods at home and abroad has slumped dramatically
during the downturn. Manufacturers expect orders to improve slightly in coming
months as companies restock after a recent spending freeze.
Eurostat said industrial output climbed 0.5 percent in May compared to the
previous month, when it fell 0.8 percent on the month.
From a year ago, industrial production is still slumping, following a record 21.6
percent fall in April and 19.3 percent in March. Eurostat said output fell in all euro
nations where it had data, with Finland booking the sharpest drop at 23.2 percent.
Components for industry were down 23.4 percent from May last year, durable
consumer goods -- such as washing machines and televisions -- dropped 22.1
percent. Nondurable consumer goods suffered far less, down just 2.2 percent.
Europe's export-driven economy relies heavily on industrial output and its
recovery, whenever it comes, will provide a clear indication that the worst of the
recession is over.
Workers at a failed French car parts supplier are threatening to blow up their
factory unless the company’s two biggest clients – Renault and PSA Peugeot Citroen
– stump up extra compensation.
Employees of the engine parts maker New Fabris have rigged up a series of
gas canisters inside a factory workshop which they say will be detonated on July 31 if
the two carmakers fail to pay €30,000 to each of the 366 workers facing
unemployment.
The company, which went into receivership for the second time in two years
last month, holds an estimated €2m of stock ordered by the two carmakers, as well as
a machine belonging to Renault valued at about €2m.
The threat could still be an empty one as government officials said there
appeared to be some doubt as to whether the gas canisters were full. Nonetheless, the
government is taking the threat seriously, fearful that the latest hold up marks a
significant increase in labour tensions that have been present for several months. The
fire brigade has been put on stand-by and emergency service reinforcements sent to
the area near the factory in Châtellerault in western France, according to a news
agency report.
Earlier this year France was hit by a wave of boss-nappings, where workers
held factory managers hostage, sometimes for several days, to force better
redundancy payoffs or protest at factory closures. Most ended without violent incident.
However there is real concern within the government that tensions could rise in
the autumn, when unemployment and company failures are expected to increase
sharply, especially in the car parts sector - hard hit by the automobile crisis. There is
already widespread resentment at bailouts for banks and carmakers, while the

32
government has refused to consider a fiscal stimulus package to boost consumer
spending.
Poland's central bank said Tuesday that annual growth in M3, the broadest
measure of money supply, rose by 14.3% in June, unchanged from May's reading.
The growth was faster than the 13.6% average forecast in a Dow Jones
Newswires survey of 11 bank economists.
On the month, M3 rose by 0.1%, from a 0.9% rise in May.
Among components of money supply, household borrowing rose by 35.7% in
June, compared with a 38.8% increase in May. June lending to companies increased
14.3%, down from May's 17.9% rate.
On the month, household borrowing rose by 0.8%, while corporate credits were
lower by 1.0% on the month.
Net borrowing by the central government sector increased 4.8% on the month.
German economic sentiment fell in July, confirming forecasts that the country's gross
domestic product is set to decline 6% this year, the Center for European Economic
Research said Tuesday.
Economic expectations for the six months to come fell to 39.5 after registering
44.8 in June, the think-tank, known as ZEW after its German initials, said.
It was the first drop since October.
Euro Zone industrial production increase 0.5% MoM in May, -17% YoY.
If sitting down at your desk in Germany this morning felt somehow different, it’s
perhaps because you’re no longer working for the taxman.
At exactly 8:42 am, Germans started symbolically pocketing their entire wages,
according to calculations by the German Association of Taxpayers. Prior to July 14 this
year, the country’s overall tax burden of 53.3 percent effectively ate up everyone’s
wages.
But the group said its tax freedom day came nearly a week later this year than
in 2008.
“The fact that Taxpayer Remembrance Day comes six days later this year
shows that demands for lower taxes are totally justified,” said association President
Karl Heinz Däke.
However, Däke acknowledged the day when taxpayers are working for
themselves could come a bit earlier in 2010 due to a recent change allowing
employees to write off their contributions to government health insurance. This will
lower the tax burden by some €9.4 billion next year.
European consumer prices fell in June for the first time since at least 1996 as
energy costs dropped and rising unemployment curbed household spending.
Prices in the 16-nation euro area dropped 0.1 percent from a year earlier, the
first annual decline since the data were first compiled in 1996, the European Union
statistics office in Luxembourg said today. The core rate of inflation, which excludes
volatile energy and food prices, eased to 1.4 percent from 1.5 percent.

ENGLAND
The U.K. housing market improved last month as more London real-estate
agents and surveyors said home values increased rather than fell for the first time in
20 months, the Royal Institution of Chartered Surveyors said.
Across Britain, the number of respondents saying prices dropped exceeded
those reporting gains by 18.1 percentage points, the highest reading since September
2007, RICS said in its monthly survey released today in London. The balance for the
capital became positive for the first time since October 2007.
The U.K.'s annual inflation rate fell below the Bank of England's 2.0% medium-

33
term target for the first time in 21 months in June, while the retail price index posted its
sharpest drop since records began in 1948, official data showed Tuesday.
The consumer price index rose 0.3% on the month and 1.8% on the year in
June, the lowest annual rate since September 2007, the Office for National Statistics
said. In May, the index rose 0.6% on the month and 2.2% on the year.
Economists were expecting a rise of 0.3% on the month and 1.9% on the year,
according to a Dow Jones Newswires survey of economists last week.
The retail price index, the most familiar general purpose domestic measure of
inflation, rose 0.3% on the month but was 1.6% lower on the year. The RPI, which has
been dragged lower by falling mortgage interest rates, rose 0.6% on the month and fell
1.1% in annual terms in May.
Economists were expecting the RPI to rise 0.5% on the month and drop 1.4%
on the year.
The DCLG House Price Index falls 12.5% in May.
Lloyd’s banking group is poised to write off $22 billion on its loans to
commercial property, businesses and mortgage holders. Losses are accelerating, in
spite of trite suggestions that the worst is over. We have been hearing that for two
year.
U.K. unemployment claims rose the least in a year in June, adding to evidence
that the worst of the recession may have passed.
Jobless benefit claims climbed from May by 23,800 to 1.56 million, the highest level in
12 years, the Office for National Statistics said in London today. The median forecast
of 29 economists in a Bloomberg News survey was for a 41,300 increase. Overall
unemployment in the quarter through May increased by 281,000, the most since
records began in 1971.

*****
From a Fellow Subscriber:
Bob,
I was reading the article below, and I suddenly realised that it’s just notice of intent of
another bank(er) heist!
http://www.dailymail.co.uk/property/article-1199248/Make-home-greener-council-
tax.html?ITO=1490

You can see that somehow there appear to be great savings to be made in energy bills
from insulation or similar, at least according to this piece. In fact it’s unlikely this is so,
unless energy is taxed further using the global warming agenda, since most houses
already have efficient insulation installed.

Even if not, you’ll see that the proposal is to push these “green mortgages” which will
supposedly save the homeowner money overall by allowing them to finance
improvements of the green kind. The devil is in the details, and I see clearly now that
this is a no-win situation for the homeowner; if they take a “green mortgage” they end
up paying the bankers (or many will because people are already cash strapped in the
UK) and if not then they pay the government in extra taxes (yet to be levied) who pays
the bankers in interest and bailouts anyway.

However even the media over here is waking up to the scam that is “climate change”
with some major pieces published recently in nationwide newspapers such as this one:

http://www.telegraph.co.uk/comment/columnists/christopherbooker/5804831/Climate-

34
change-The-sun-and-the-oceans-do-not-lie.html

There is no question that coupled with their other methods looting of the financial
system, the lie of anthropogenic global warming will result in disaster. Britain is already
committed to an 80% reduction in so called “carbon emissions” by 2050. To achieve
that goal the UK Government may have to legislate that the plants and trees stop
breathing too, and cow flatulence will most certainly be verboten. Actually, all that the
governments can and will propose is that we are taxed on necessities like basic
transport and heat/light to encourage “responsible behavior”. All in the name of
controling carbon dioxide, which is essential to life on our planet.

Al Bore has been forced to admit that he will make out like a bandit from his crusade,
but when placed on the spot about it, merely says that he is proud of his activist role
and continues with his profligate lifestyle of private jets, thirsty cars and power hungry
mansion. A judge in the High Court, England actually upheld a case for withholding the
screening of his marketing video “An Inconvenient Truth” from our youngsters without
providing balancing material, because of 9 major fabrications.

http://www.timesonline.co.uk/tol/news/uk/science/article2632660.ece

While the ultimate opposing piece “The Great Global Warming Swindle” by UK’s
Channel 4, may well also contain significant inaccuracies, one statement stands out
like a beacon, the most inconvenient truth for Bore, that the CO2 levels broadly
correlate to the temperatures, but the CO2 change is DELAYED by around 800 years,
thus leaving the only plausible explanation for warming/cooling of the planet to be the
huge hot yellow thing thing in the sky. Imagine that? Who would have thought that the
sun would have such a major effect on earth temperatures!

Unfortunately, it seems that Bore and his ilk have co-opted the environmentalists, and
by the time the majority of people realise the truth it will be too late, the carbon tax and
trading scam will be fully ensconced in all our lives. The first example of this is the
American Clean Energy and Security Act, but there are numberous others in various
stages of construction around the globe.

Bob, I am very much for responsible care of our environment, but while the
governments are planning literally to tax us to death, the major industrial polluters
continue to spew out poisons unabated. In conclusion I agree with your recent
statement with one small difference; there is a 100% chance of a revolt in the US if this
Clean Energy and Security Act passes the Senate. The people will have no choice,
however I agree with Ed Griffin that a revolution is unlikely because there is no
leadership, planning or financing.

Thanks so much for your huge contribution to exposing the illuminists. These are
indeed interesting times.

*****
From a Fellow Subscriber:
Hi Bob It' seems we will get to see a Nation mass inoculate against a mild flue? If
people take this vaccine they deserve what they get. It's crazy the double speak we
are being bombarded with. Great Brittan is going to Mass vaccinate their whole
country. They call it the biggest campaign in 50 years!!! Why??? ONLY 15 people

35
have died in their whole country since inception of the swine flue!!! It's not even
causing serious illness according to this article. Am I missing something? Has
everyone lost their ability to think critically?? Canada is gearing up, England is gearing
up, I'm sure America the home of the slave land of the depraved will be inline for
MASS Inoculation.
Under the Nuremberg Code, “voluntary consent of the human subject is absolutely
essential” in the administration of experimental medical procedures. “This means that
the person involved should have legal capacity to give consent; should be so situated
as to be able to exercise free power of choice, without the intervention of any element
of force, fraud, deceit, duress, over-reaching, or other ulterior form of constraint or
coercion; and should have sufficient knowledge and comprehension of the elements of
the subject matter involved as to enable him to make an understanding and
enlightened decision.”
We still have rights, Under Nuremberg Code "voluntary consent of the human subject
is absolutely essential". So if a government agent comes knocking with a shot for you,
tell them they are trespassing, that you do not consent to this vaccine and get the hell
of your property!!! Don't let anyone fool you or coerce you.

July 12, 2009


Swine flu vaccine to be cleared after five-day trial
The UK government has ordered enough vaccine to cover the entire population. GPs
are being told to prepare for a nationwide vaccination campaign.

Dr Peter Holden, the British Medical Association’s lead negotiator on swine flu, who
has been attending Department of Health meetings on the outbreak, said GPs’
surgeries were prepared for one of the biggest vaccination campaigns in almost
50 years.

He said although swine flu was not causing serious illness in patients, health
officials were eager to start a mass vaccination campaign, starting first on priority
groups. First, the jabs would reduce the chances of a shortage of hospital beds
because of people suffering from swine flu. Second, it would reduce the effect on the
economy by ensuring workers were protected from the virus.

(This is at the end of the article???? Why are they Mass vaccinating for??? )

About 15 people have died of swine flu in Britain, but most of those infected get only
mild symptoms. According to the latest figures from the Health Protection Agency, the
UK has had 9,718 confirmed cases of the disease.
http://www.timesonline.co.uk/tol/news/uk/health/article6690010.ece

*****

LATIN AMERICA
The pace of consumer inflation in Brazil's largest city, Sao Paulo, picked up in
the four weeks ended July 7, as food prices accelerated in the period, the Fipe
research foundation said Monday.
Fipe, which is affiliated with the University of Sao Paulo, said its consumer
price index rose 0.17% in the period, compared with a rise of 0.13% in June.
The figure was in line with market forecasts for an increase of between 0.10%
and 0.19%.

36
Food prices picked up 0.75% in the four weeks ended July 7, compared with an
increase of 0.19% in June.
With recent figures indicating inflation is under control and signs of an
economic slowdown, Brazil's central bank cut the Selic base interest rate to 9.25%
from 10.25% last month.

MEXICO

*****
Mexico Faces ‘Unsustainable’ Gap, Morgan Stanley Says
http://www.bloomberg.com/apps/news?pid=20601086&sid=amFWPsTJzcXM
*****

CHINA
China’s banking regulator said rapid credit growth poses a risk to the nation’s
lenders and a concentration of credit to some industries and businesses may damage
the stability of the financial system. Banks should offer more syndicated loans to
share the risk of defaults, Wang Huaqing, the disciplinary secretary of the China
Banking Regulatory Commission, said. Chinese banks advanced a record 5.84 trillion
yuan ($850bn) of new loans in the first five months, almost triple the amount of a year
earlier.
This past week we mentioned that China was aggressively moving forward with
its stimulus plan. As it turns out it is even more aggressive than we had imagined.
The Chinese must believe they are bulletproof. We saw increases in injections
of funds of a net $1.2 trillion. This past week new numbers for the first half of the year
were greater. $1 trillion in loans and stimulus of $600 billion or $1.6 trillion. Year-on-
year that is three times larger as exports fell 35%. This is stimulating domestic sales.
Car sales rose 48%. Someone should tell China as well as the US that bubble
economies become acutely vulnerable to descending into a downward spiral. That
unequal distribution of wealth creates a volatile social backdrop. In any society that is
especially bad news. In a totalitarian communist society it can run completely out of
control, which can end in revolution.

JAPAN
*****
DPJ’s Nakagawa Says Japan Should Diversify Reserves
http://www.bloomberg.com/apps/news?pid=20601087&sid=aJ.CUWH3_7o8
*****

AUSTRALIA and NEW ZEALAND


Firms are feeling more confident with the Business confidence Index rising 6
points to +4, the first positive number since Dec 2007. June Business conditions Index
rose 12 points to -2, the highest in nine months. A pickup in sales and forward orders
led to a record improvement in employment intentions with the NAB business
employment index jumped a record 18 points to -7.

HEALTH
HOW TO DROP CHOLESTEROL UNDER 200 (PART 2)

37
If you don’t want to be one of the millions of people dealing with high cholesterol and
the lifetime of prescription drugs, lab work, side effects and other costs which licensed
medicine has to offer, then it is time to get smart and do something about it. Drug
companies are counting on us being too ignorant, lazy or brainwashed to ever take
matters into our own hands and address the cause of our health problems. It is time to
take action and set some precedence before being able to self-medicate with nutrition
becomes illegal.

THE ALMOND EATERS


Many feel that all fat is bad for you, especially the fat found in nuts. How could fat help
a cholesterol problem? Well, the monounsaturated fat in nuts helps to prevent the bad
LDL cholesterol from oxidizing. Taking this argument about fatty nuts to the max Dr.
Gene Spiller had both men and women (who had cholesterol levels over 240) eat
almonds (3.5 oz.) every day for a month. The test group ate the same amount of fat
from cheese. The group eating the almonds had a 15% decrease in cholesterol
compared to the test group. Dr. Spiller noted that the almonds worked as well as olive
oil in reducing cholesterol and the scientific reason is that the fat in both are chemically
identical. Thus one could conclude that if olive oil is good for your heart, so is almond
oil.

GOING NUTS
Are there any other nuts that work just a well as almonds or better? Dr. Joan Sabate of
Loma Linda University tested the use of walnuts and found that there was an 18%
reduction in cholesterol. The test group was on a low-fat diet and for one month ate
20% of their calories in walnuts (2 oz per day). The next month they went off all nuts
and their cholesterol dropped just 6%. Dr. Sabate noted that an individual could drop
their cholesterol 22 points eating walnuts. NOTE: nuts on average contain 170 calories
per ounce and the people in the studies didn’t literally go nuts eating nuts to avoid
gaining weight.

WHAT ABOUT FRUIT?


Is there a specific kind of fruit that will help lower cholesterol? Some fruits will contain a
similar type of fat found in olive oil and nuts. Avocados can help drop cholesterol by
10% according to researchers in Israel and Australian cardiologists at Wesley Medical
Center in Queensland. If you eat a low animal fat diet the cholesterol drops even
further. So, a little healthy fat from almonds, walnuts and avocados can help keep the
bad LDL cholesterol from oxidizing and causing artery damage. It was also discovered
that natural vitamin C and E in fruits like strawberries are anti-cholesterol foods. How
does vitamin C help? It helps promote good HDL cholesterol to cleanse the arteries
and veins while blocking the formation of bad LDL cholesterol. One study had patients
eat 1 cup of strawberries and 1 cup of broccoli a day and they achieved a higher HDL
level to help prevent the clogging of arteries. You can eat a couple of oranges each
day and accomplish the same thing. For a free list of foods high in vitamin C send your
email request to wwilson@thepowerherbs.com or call Apothecary Herbs 866-229-
3663, International 704-875-8010.

OTHER STUFF
Some French researchers discovered that fruit pectin (fruit fiber) is another food that
will help drop cholesterol by 10%. Apples were given to middle-aged women who ate
2-3 apples a day to their regular diet and nearly all watched their LDL cholesterol fall.
Carrots do the same thing by eating 2 carrots daily. The study stated raw or cooked

38
carrots worked equally as well due to the beta carotene, however whenever heat
touches a food it changes it chemically and therefore raw is preferred.

WHAT ABOUT THE GREAT GRAPEFRUIT?


I think almost everyone has heard about the grapefruit diet. Why does grapefruit work?
It contains a unique fiber (galacturonic acid), which helps lower cholesterol and
dissolve plaque to unclog arteries. Dr. James Cerda at the University of Florida states
that 2.5 cups of grapefruit eaten daily lowered cholesterol by 10%. Apparently the
grapefruit juice alone does not have the same benefits. Dr. Cerda’s study showed that
grapefruit fiber protected heart aortas as well as arteries by preventing plaque.

DO EGGS GET A BAD RAP?


What is the truth about eggs and shellfish as containing high cholesterol? Scientific
studies from Rockefeller University NY discovered that these types of foods are minor
players in creating bad cholesterol in most people. The real culprits are animal foods
containing saturated fat. However, overdoing the foods with cholesterol will over
burden the blood system encouraging clots.

THE OFFENSIVE FOODS


The foods containing the most saturated animal fats are: chicken skin, butter, milk,
cheese, beef, pork, meat drippings and lard. Try to curtail your meats to 4 ounces per
serving and pile on the vegetables.

GENETIC TRICK
There are those folks that genetically are born with a faulty liver and no matter what
diet can’t seem to get their cholesterol down low enough. To them I say do a liver
cleanse and add milk thistle herb to your supplements to help the liver regenerate
quickly. If genetics create a high Lpa level, which can contribute to clogged arteries at
an early age, then I suggest using fish oil. Dr. Jorn Dyerberg, a Danish researcher,
found that fish oil (4 gms or 7 oz. of mackerel per day) lowers Lpa levels by 15%.

AVOID SUPER LOW-FAT


Dr. Frank Sacks of Harvard says if you overdo the low-fat diet you can drive down the
good HDL cholesterol with the bad. So, don’t worry about the monounsaturated fats,
which help bring up the HDL levels and will protect you.

CHOLESTEROL TOO LOW?


We hardly ever hear about cholesterol being too low but it is possible to have a level
under 160, which is considered dangerous. You are more likely to have a bleeding
stroke as well as heart failure. Low healthy HDL cholesterol can contribute to
depression, liver failure and cancer as well.

PROTECTING YOURSELF
Protect yourself with a healthy lifestyle and make sure you cleanse the organs of
toxins twice a year. A liver cleanse will be necessary if cholesterol is a problem and it
is a good preventative measure for all kinds of disease. Before you cleanse the liver it
is important to have cleansed the bowel opening up the elimination channel so that the
liver (and gallbladder) can purge toxins and regenerate. Use Milk Thistle herb to help
the liver regenerate quickly and Barberry bark to cleanse the gallbladder. To help
strengthen the cardiovascular system use herbs designed to balance blood pressure,
help purge the blood of existing cholesterol and plaque and strengthen the heart

39
muscle. Look for Heart/Cholesterol/BP herb liquid formula and Celtic Sea salt (will not
promote high blood pressure), Bowel Cleanse Kit and Milk Thistle and Barberry Bark
tinctures at Apothecary Herbs. For more information on organ cleansing and the tools
you will need call the experts in organ cleansing, call Apothecary Herbs 866-229-3663,
International 704-875-8010 online http://www.thepowerherbs.com.

TOTAL EMERGENCY ALERT!!


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announce mandatory swine flu inoculations for this fall. If you haven’t gotten your
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EXTRA HEART ATTACK PREVENTION


In addition to the heart strengthening therapies above, while you have some extra
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40
Portuguese Sea Salt - imported from the traditional salterns (a 2000-year tradition)
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HERB TALK LIVE – with Herbalist Wendy Wilson every Tuesday & Thursday at 7:00
pm EST on AVR www.theamericanvoice.com and Thursday at 4:00 pm on WBCQ
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#10 CANS SURVIVAL FOOD – call Freeze Dry Guy 866-404-3663 or


www.freezedryguy.com.

*****
John Holdren, Obama’s Science Czar, Says: Forced Abortions and Mass
Sterilization Needed to Save the Planet
http://cryptogon.com/?p=9812
*****

Guess they will just take us out like they did the old Indians and20Eskimos.

THOSE OF US THAT ARE OVER 70...ARE NOT THE ONLY ONES WHO WILL NOT
BENEFIT FROM THIS …….SOOO... SEND THIS TO YOUR FAMILY AND FRIENDS
WHO ARE 45 AND OLDER
HEALTH RATIONING FOR SENIORS

To all of you seniors, and soon-to-be seniors, this is a must read. The stimulus bill is
going to cut your medical coverage, and your years of life. It actually suggests making
medical decisions based on how long you will live by getting the procedure/medicine.
So, if you're 29, you get everything medically approved because you have a long life
ahead of you. If you're 59... well, hmmm, that's another story . Because of your age
and life expectancy, your medical coverage will be curtailed. That's right! If you are a
senior and you get cancer or some other catastrophic illness, you may not get medical
attention simply because you're "too old." Sounds like euthanasia to me!!!

By the way, what does this have to do with the "Stimulus Bill"? The scumbag
politicians in Washington know that they could not get this passed on its own!! Read
below...

HEALTH CARE FOR SENIORS Most of yo u know by now that the Senate20version
(at least) of the "stimulus" bill includes provisions for extensive rationing of health care
for senior citizens... The author of this part of the bill, former tax delinquent senator,
Tom Daschle was credited today by Bloomberg with the following statement:
Bloomberg: "Daschle says health-care reform 'will not be pain free.' "Seniors should be
more accepting of the conditions that come with age instead of treating them.” Go
here to read the article:
http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_mccaughey&si
d=aLzfDxfbwhzs

41
If this does not sufficiently raise your ire, just remember that Senators and
Congressmen have their own healthcare plan that is first dollar or very low co-pay
which they are guaranteed the remainder of their lives and are not subject to this new
law if it passes.

Please use the power of the Internet to get this message out. Talk it up at the
grassroots level.. Won't be long until we have a mid-term election coming up.. We
have the ability to address and reverse the dangerous direction the Obama
administration and it allies have begun. KEEP THIS CIRCULATING!!!!

*****

OBAMA WILL REPEAL MEDICARE


By DICK MORRIS & EILEEN MCGANN

Obama's health care proposal is, in effect, the repeal of the Medicare program as we
know it. The elderly will go from being the group with the most access to free medical
care to the one with the least access. Indeed, the principal impact of the Obama
health care program will be to reduce sharply the medical services the elderly can
use. No longer will their every medical need be met, their every medication
prescribed, their every need to improve their quality of life answered.

It is so ironic that the elderly - who were so vigilant when Bush proposed to change
Social Security - are so relaxed about the Obama health care proposals. Bush's
Social Security plan, which did not cut their benefits at all, aroused the strongest
opposition among the elderly. But Obama's plan, which will totally gut Medicare and
replace it with government-managed care and rationing, has elicited little more than a
yawn from most senior citizens.

It's time for the elderly to wake up before it is too late!

In our new book, Catastrophe, we explain - in detail and in depth - the consequences
the elderly of Canada are feeling from just this kind of program. Limited colonoscopies
have led to a 25% higher rate of colon cancer and a ban on the use of the two best
chemotherapies are part of the reason why 42% of Canadians with colon cancer die
while 31% of Americans, who have access to these two medications, survive the
disease.

Overall, the death rate from cancer in Canada is 16% higher than in the United States
and the heart disease mortality rate is 6% above ours'.

Under Obama's program, there will be a government health insurance company that
gets huge subsidies of tax money. It will compete with private insurance plans. But
the subsidies will let it undercut the private plans and drive them out of business,
leaving only the government plan - a single payer – in effect.

Today, 800,000 doctors struggle to treat adequately the 250 million Americans who
have insurance. Obama will add 50 million more to their caseload with no expansion
in the number of doctors or nurses. Indeed, his plan will likely reduce their number by
lowering reimbursement rates and imposing bureaucrats above them who will force

42
medical decisions down their throats. Fewer doctors will have to treat more patients.
The inevitable result will be rationing.

And it is the elderly who rationing will most effect. Who should get a knee replacement
a 40 year old or a 70 year old? Who should get a new hip, a young person or an old
person? Who should have priority in the operating room a seventy year old diabetic
who needs bypass surgery or a younger person? Obviously, it is the elderly who will
get short shrift under his proposal.

But the interest groups that usually speak up for the elderly, particularly AARP, are in
Obama's pocket, hoping to profit from his program by becoming one of its vendors.
Just as they backed Bush's prescription drug plan because they anticipating profiting
from it, so they are now helping Obama gut the medical care of their constituents.

It is high time that the elderly of America realized what the stakes are in this vital fight
to preserve Medicare as we know it and keep medical care open, accessible, and free
to those over 65. It is truly a battle for their very lives.

The Cancer Cure That Really Works? - Click Here Now!

*****
From a Fellow Subscriber:
Hi Bob, Check out this you tube video. I have been taking mms for over nine months
now. I am one of your subscribers to the International Forecaster............

http://www.youtube.com/watch?v=bp1eqTajcpQ&feature=related
<http://www.youtube.com/watch?v=bp1eqTajcpQ&amp;feature=related>

http://www.youtube.com/watch?v=PGjUp1zoov8&feature=related
<http://www.youtube.com/watch?v=PGjUp1zoov8&amp;feature=related>
*****

The International Health Regulations (IHR) pursuant to Article 21* of the Constitution
of the World Health Organization (WHO) came into force in June 2007 and allow the
General-Director of WHO to declare an international health emergency. This was
accomplished when a Level 6 Pandemic was declared by WHO on June 11, 2009.

Reuters predicts that WHO could announce its call for mandatory "Swine Flu"
vaccination as early as Monday, July 13, 2009.

"GENEVA, July 10 (Reuters) ...WHO will probably hold a media briefing on Monday to
issue guidance about the need for a H1N1 influenza jab, a WHO spokeswoman said
on Friday."

http://www.reuters.com/article/marketsNews/idUSLA13179620090710
<http://salsa.democracyinaction.org/dia/track.jsp?v=2&amp;c=JWLKtFVcbGDDNWy0L
uufcD6BL4ri2G6o>

During an international health emergency, WHO's Director-General can impose


regulations, including "sanitary and quarantine requirements and other procedures
designed to prevent the international spread of disease".

43
Once WHO declares a Pandemic or international health emergency, WHO has the
authority to order forced vaccinations around the world.

All 194 signatory countries to IHR MUST comply. A list of countries which have
signed the WHO Constitution, binding them to observe IHR, can be found here:
http://www.who.int/countries/en/
<http://salsa.democracyinaction.org/dia/track.jsp?v=2&amp;c=LcCktyNbo5YpdRgK19
BPIT6BL4ri2G6o>

* "Article 21 The Health Assembly shall have authority to adopt regulations


concerning:(a) sanitary and quarantine requirements and other procedures designed
to prevent the international spread of disease;...The International Health Regulations
2005 are legally binding regulations (forming international law) that aim to a) assist
countries to work together to save lives and livelihoods endangered by the spread of
diseases and other health risks, and b) avoid unnecessary interference with
international trade and travel."
*****
Criminal charges filed alledging that the 'Swine Flu'
Austrian journalist (Jane Burgermeister) joins Drew Raines host of A Marines
Disquisition and also Dr Carley talking about the criminal charges she has filed
alledging that the 'Swine Flu' has been engineered for a sinister purpose.
http://911truthnc. blogspot. com/2009/ 07/criminal- charges-she- has-
filed. Html
*****

Baxter under investigation in New Zealand


http://www.naturalnews.com/026571_Baxter_New_Zealand_health.html

*****
Upcoming Free Flu Vaccine Webinars - Waivers and Exemptions
RE: State Emergency Powers Act......Fall swine flu vaccination campaign
There is a potential for serious violations of human rights which might accompany the
"state emergency powers act". That act may be called upon this fall with swine flu and
everything associated with it. This webinar with Alan J. Philips J.D. and Dr. Mayer
Eisenstein might be of interest.

From: "Alan Phillips, J.D." lawpapa@nc.rr.com


Friends,
I'm proud to announce that I'll be doing a free vaccine rights webinar with Dr. Mayer
Eisenstein, MD, JD, MPH on Wednesday evening July 15th, at 9:00 - 10:00 pm ET.
Please help spread the word! Topics will include various aspects of US vaccine
exemption and waiver law, and rights during emergency situations including this fall's
anticipated mandatory flu vaccines. For more information or to sign up, see
http://www.homefirst.com/webinars.html, or go to www.vaccinerights.com (top left on
Home page).

I've also just completed the latest revisions on my e-book, "The Authoritative Guide to
Vaccine Legal Exemptions"--it now includes information on international law and rights
in emergency situations, as well as updates to other areas including vaccine (child)

44
custody disputes, healthcare employees, military and immigration waivers--and of
course, laws and legal precedent applicable to public and private schools. It's the only
available source anywhere for in-depth, reliable information about U.S. vaccine
exemptions and waivers. Please see www.vaccinerights.com/e-book.html.
Thank-you for your support!
Alan
Alan Phillips, J.D.
P.O. Box 3473
Chapel Hill, NC 27515-3473
919-960-5172
www.vaccinerights.com
*****

From a Fellow Subscriber:

TOTAL (54)*
37,246 cases
211 deaths
Hi Bob
Again the Hype from the Swine Flu is amazing !!! This Washington Post article says
over a Million Americans were infected with the swine flu. What does the CDC official
web site say as of Friday July 10th (The day this article came out)
http://www.cdc.gov/h1n1flu/update.htm... .. 37,246 cases and 211 deaths.
Washington Post was only off by over 960,000 . I wonder when will the sheeple have
enough ???

http://www.washingtonpost.com/wp-
dyn/content/article/2009/07/09/AR2009070900353.html?nav=emailpage

Students 1st in Line For Flu Vaccine Mass Campaign Against Pandemic May
Begin in Fall

The new H1N1 virus, derived from two strains of influenza virus that circulates in pigs,
emerged in late April in Mexico and Southern California. Still called "swine flu" by
many people, it is now in every state. More than 1 million Americans have become ill
from it, and 170 have died. Worldwide, it is on every inhabited continent and is
responsible for at least 420 deaths.

*****
SCHEDULED ISSUES
Saturday, July 18, 2009
Wednesday, July 22, 2009
Wednesday, July 29th, 2009
NOTICE – NOTICE – NOTICE
There will NOT be an issue of the FORECASTER on
SATURDAY, July 25, 2009

45