THE INTERNATIONAL FORECASTER

WEDNESDAY, JUNE 3, 2009

060309(1)_IF
P. O. Box 510518, Punta Gorda, FL 33951-0518
An international financial, economic, political and social commentary.

Published and Edited by: Bob Chapman

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Radio Liberty part 1 <http://www.youtube.com/watch?v=lZRH2CtEu2k>
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*****
SCHEDULED ISSUES
Every Wednesday and Saturday June 2009

Another must read:

WEB OF DEBT – by Ellen Brown www.webofdebt.com <http://www.webofdebt.com>

*****

As of close on 06/02/09
We recommend the following SHORT POSITIONS:
The first number is the price when we recommended it, the second is the current price
and the third is the price to cover.
Amazon (AMZN) $39.68, $ 84.93, $, $3.00;
Cisco (CSCO-OTC) $18.24, $19.61, $11.04;
GE $33.49, $13.80, cover open;
Monsanto (MON-NYSE) $35.66, $82.70, $16.00;
Time Warner (TWX-NYSE) $16.13, 24.60, open;
Weyerhaeuser (WY-NYSE) $65.05, $35.81, open;
Harley Davidson (HOG-NYSE) $59.11, $19.04, Open;
Raymond James (RJF-NYSE) $17.50, $15.93, cover at $9.00;
We recommend putting on PUTS or SHORTING these stocks. They are:
D. R. Horton (DHI-NYSE) short at $33.16, $9.63, cover open;
Blackstone (BX-NYSE) short at $38.00, $10.80, open;
Home Depot (HD-NYSE) short at $38.94, $24.50, cover open;
IBM (NYSE) short at $84.50, $106.83, cover open;
JC Penny (JCP-NYSE) short at $36.00, $30.86, cover open;
Lennar (LEN-NYSE) short at $47.80, $9.72, Open;
Proctor & Gamble (PG-NYSE) short at $54.24, $53.71, $40.00;
Pulte Homes (PHM-NYSE) short at $61.52, $8.97, Open;
Ryland Group (RYL-NYSE) $91.90, $17.90, Open;
Standard Pacific (SPF-NYSE) short at $55.78, $2.71, Open;
Target (TGT-NYSE) short at $45.82, $41.28, and cover open;
Toll Brothers (TOL-NYSE) $46.35, $19.53, $19.47, Open;
United Health Care Group (UNH-NYSE) short at $73.50, $28.19, Open;
Visa (V-NYSE) $64.35, $66.81, Open,
Waste Management (WMI-NYSE) short at $28.70, $28.73, and cover at $17.00;
LONGS POSITIONS:
Agnico-Eagle (AEM-NYSE) $14.05, $61.61, Open;
Remstar Resources (REM.V) C$0.1450, $0.12, Open;
American States Water (AWR-NYSE) $25.18, $, $31.93; go long again at $30.00;
Anadarko (APC-NYSE) $23.40, $49.70, Open;
Apache (APA-NYSE) $50.43, $49.70, Open;
Connecticut Water (CTWS) $26.32, $22.43, $32.21;

3
Capella Res. (KPS.V) new symbol C$0.69 C$0.37 Open;
Goldcorp (GG-NYSE) $32.00, $38.90, Open;
Crystallex (KRY-AMEX) $0.625, $0.27, Open;
EnCana (ECA-NYSE) $23.22, $58.04, Open;
Middlesex Water (MSEX) $17.90, $14.42, $25.00;
Minefinders Corp. (MFN-ASE) $6.00, $9.26; Open
Silver Standard (SSRI-OTC) $2.50, $24.67, Open,
Hellix Ventures (HEL.V) $C0.50 $C0.16, Open;
Closed Position:
Citigroup (C) $44.10, $1.22, was covered at $2.62;
Countrywide Financial (CFC-NYSE-PB) $15.52, covered at $4.50;
Dell Computer (DELL-OTC) $35.29, covered at $12.20;
Ethan Allen (ETH-NYSE) $34.51, covered at $17.89;
Fannie Mae (FNM) $66.68, covered at $0.80;
GM (GM-NYSE) short at $41.31, covered at $1.15;
Goldman Sachs (GS-NYSE) $198.74, $82.37, covered at $97..32;
International Paper (IP-NYSE) $39.46, covered at $17.26;
J.P. Morgan Chase (JPM) $39.36, $21.01, covered at $23.15;
Temple-Inland (TIN-NYSE) $66.62, covered at $5.93;
Washington Mutual (WM-NYSE) $27.88, short covered at $0.50.
Wells Fargo (WFC-NYSE) short at $59.65, $10.67, covered at $13.99;
Tyco (TYC-NYSE) short at $30.04, $19.56, cover at $9.00.

NEW SHORTS - closing on 4/22/09

Goldman Sachs (GS-NYSE) $114.39; $120.49, open;
JP Morgan Chase (JPM-NYSE) $29.37; $31.90, open;
Wells Fargo (WFC-NYSE) $16.48; $18.18, open;
Tyco (TYC-NYSE) $21.10; $22.63; open;

INCREASING SHORTS
Harley Davidson (HOG-NYSE) $17.17; $19.04; open;
JCPENNY (JCP-NYSE) $25.69; $30.86, open;

*****

US MARKETS
Re-emergence of dollar vulnerability has taken almost all professionals by
surprise. That has been prompted by the expansion of the Fed’s balance sheet, the
upward movement in interest rates and the massive monetization that has been
underway for some time. The Fed like many other central banks has been extending
money and credit for the past 5-1/2 years. Those who watch closely were well aware
of this. That is why the Fed has not published M3 for three years. Official Fed interest
rates may be zero but real market has them higher than 3-1/2% in the long end of the
market. Investors have finally fixated on the massive monetization in progress. If the
Fed does not monetize the system collapses. In order to save the system the dollar
has to be sacrificed. This needless to say is a very distasteful choice for the Fed. They
can no longer have it both ways. The perceived result is hyperinflation, which we have
forecast for some time.
This past week the Fed and the Treasury via the “Working Group on Financial
Markets,” struggled to hold the stock market up, along with the bond market and to
continue to suppress gold and silver. The group was created in August 1988, under

4
Executive Order 12631. It was later nicknamed the “Plunge Protection Team” by the
Washington Post. The group was the answer to the plunge in the stock market in late
October 1987. Incidentally, the Fed and the Treasury both illegally interceded in that
market chaos arresting the collapse. They gave banks and brokerage firms unlimited
amounts of money to stop the free falling market. The group is supposed to promote
the integrity, effectiveness, regularity and competitiveness of our markets, to maintain
the confidence of investors. The group produces no reports, the public knows nothing
about it, nor does 80% of Wall Street, there are no minutes of their meetings, and
everything is done in secret. We have witnessed hosts on CNBC deny that it even
exists, when they know it manipulates markets worldwide 24/7. The members of the
president’s group are the Chairman of the Federal Reserve, the head of the New York
Fed, the Secretary of the Treasury, the Chairman of the SEC and the head of the
CFTC, the Commodity Futures Trading Cooperation. The original intention of the order
has been badly distorted and a good example of that was the termination of reporting
on M3 in March 2006. The influence on all these entities cannot be underestimated.
Since 1988 Goldman Sachs, Citigroup and JP Morgan have run them. They have been
able to manipulate markets with abandon. As you can see their leadership has not led
to healthy, free financial markets. Their greed has again destroyed our markets as they
have over the past 96 years for the Fed and last 20 years for the group. Over these
years a number of indicators, such as M3 have been discontinued so that
professionals and others could follow the flow of credit and money creation and its
affect on the dollar. The Fed and the Treasury do not want you to know what they are
doing. Their attitude is that you don’t have a need to know. As a result of
professionals, Congress and individual Americans are not paying attention, as the
international monetary system is collapsing.
In 1832, President Andrew Jackson in vetoing a bill to form a second national
bank, similar to today’s Fed said, “Distinctions in society will always exist under every
just government. Equality of talents, of education or of wealth cannot be produced by
human institutions, in the full employment of the gifts of heaven and the fruits of
superior industry, economy, and virtue, every man is equally entitled to protection by
law, but when the law undertakes to add to these natural and just advantages artificial
distinctions, to grant titles, gratuities, and exclusive privileges to make the rich richer
and the potent more powerful, the humble members of society – the farmers,
mechanics and laborers – who have neither the time nor means of securing like favors
to themselves, have a right to complain of the injustice of their government.” His veto
of the bill stood. The bankers were unable to buy sufficient votes to override the veto.
On May 23, 1933, Rep. Louis T. McFadden brought formal charges against the
board of Governors of the Federal Reserve Banking System, the Comptroller of the
Currency and the Secretary of the Treasury, for numerous criminal acts, included but
not limited to conspiracy, fraud, unlawful conversion and treason. McFadden survived
two attempts on his lfe, but died in 1936 of poisoning. He was in a position to speak
with authority of the vast ramifications of this gigantic private credit monopoly, as
Chairman of the House Banking & Currency Committee for more than ten years. His
speeches are there for all to see in the Congressional Record. We’ll give you just a
taste of his thoughts. “Mr. Chairman we have in this country one of the most corrupt
institutions the world has ever known. I refer to the Federal Reserve Board and the
Federal Reserve Banks. They have cheated the government of these United States
and the people of the United States out of enough money to pay the national debt. The
depredations and inequities of the Fed have cost enough money to pay the national
debt several times over.”

5
 Those comments are mild compared to the rest of his speech. We again refer
you to The Creature from Jekyll Island by G. Edward Griffith and Secrets of the
Federal Reserve by Eustace Mullins.
The Fed planned and executed the events that created two bubbles in the
small space of ten years. They have ensconced us now in the biggest financial crisis in
American history. Unfortunately, few are able to foresee what devastating affect it will
have on not only America, but on the entire world as well. As a result the dollar will fail
further impairing the economic structure and bringing an end to the dollar as a reserve
currency. What will replace the dollar no one knows. Certainly not today’s fiat
currencies, unless they back their currencies with gold. No one wants to accept
another worthless currency.
Unfortunately the Fed still believes they can create money and credit and
manipulate interest rates and not pay a price for it. The Fed’s failure has caused a
massive ongoing devaluation with no end in sight. Foreigners are finally starting to get
it after ten years of dollar degeneration. That is why the dollar is falling and interest
rates are rising. They are not going to tolerate much more monetization before the
dollar selling becomes a torrent. From here on out it is going to get really nasty.
We have tried to take a peek into the future as others have and the best case
scenario is probably 10% annual inflation along with what we already have in the
system. As we’ve seen in times past inflation usually comes in waves. Then there are
the massive budget deficits as far as the eye can see. It is no wonder interest rates are
rising, the dollar is falling and gold and silver are starting to move away.
Wages are not keeping up with real inflation and they won’t in the future. In
order to defray the loss in tax revenues and the $12 trillion plus fiscal deficit our
President now calls for a VAT, Value Added Tax, on everything we buy. Europe has
VAT taxes and they run around 17% to 20%. This is on top of state and federal income
taxes. VAT is popular with governments because they are tough to evade.
More taxes are not the solution. Cutting spending is the solution. Our President
and Congress want to turn us into tax slaves. Such a tax would as well further impede
economic growth. What most professionals do not seem to understand is that
monstrous borrowing is going to take place for years to come if lenders will lend. If
they do lend it will be at much higher real interest rates that America won’t be able to
afford to borrow. We can assure you taxes on the rich won’t rise. They are the people
who financed both parties. All this portends a decline in residential and commercial
real estate and years of bumping along the bottom. House prices are off 19% yoy and
32% from their 2006 highs. We predicted a median 32% fall in 11/04. It looks like the
drop could be 40%. Homes over $750,000 have a 40-month overhang. Unfortunately
Fitch says 75% of modified loans will go bad again in six months to a year. So much
for government planning. In addition, we are facing higher unemployment and inflation
and that certainly won’t help. We know about the troubles in ALT-A and Option ARM
loans, but what is really disconcerting is that the foreclosure rate on prime fixed rate
loans has doubled over the past year and now is the biggest segment of foreclosures
due to unemployment. Over 10% of homeowners are late on payments or in
foreclosure. 25% of subprime loans are in foreclosure, 14% of FHA loans and 6% of
prime loans. No one will say the word, but we entered depression in February.
Unemployment will deepen somewhat over the next 1-1/2 years, but little gain will be
made. Business cannot expand even if they wanted too. The banks have yet to lend to
them and if they have it is at greatly reduced levels.
We hear again the false clarion call that the developing world is decoupling and
will lead us out of this morass. Don’t believe a word of it.

6
 Insiders on Wall Street knew a week ago that the US government would give
GM $30.1 billion for 60% of GM. That the UAW would get 17.5% and Canada would
lend $9.5 billion for 12%. They also knew long ago Chrysler would be given away to
Fiat. How’s that for insider trading? This is why you cannot have a revolving door
between banking and Wall Street with the Treasury and the Fed.
What people, especially professionals, do not understand is that the $14.8
trillion in debt being created to bail out Wall Street, banking and insurance is systemic
and will do more damage to the economy than the credit crisis we have witnessed for
22 months. Either costs are cut 60%, or taxes increased a like amount, or the debt to
GDP will climb, inflation or no inflation. All we know is soon prices will double.
We will be interested to see how the government handles AIG’s naked
exposure to credit default swaps they wrote. We could be talking hundreds of billions
of dollars. Are American taxpayers going to bail out banks, Wall Street and hedge
funds again? If they do not the result could be very nasty. Put this together with a
collapsing dollar and rising interest rates and we could have bedlam.
Where was the SEC when one minute before the close, JP Morgan announced
it will raise $5 billion in equity and repay $25 billion in TARP funds by the end of June?
That happened on Monday. On last Friday who bought 2,500 SPMs near the close and
jacked up the S&P 500 2%? Where is the SEC? This is market manipulation and it is
the 8th time it has happened in four weeks.
It is our government of course.
World Bank President Robert Zoellick warned policy makers that fiscal-stimulus
plans are insufficient to turn around the “real economy” and rising joblessness
threatens to set off political unrest across the globe. “While the stimulus has given an
impulse, it’s like a sugar high unless you eventually get the credit system working,”
Zoellick said in an interview yesterday with Bloomberg Television’s “Political Capital
with Al Hunt.” “When unemployment increases, that’s probably the most political
combustible issue.”
It is not every 31-year-old who, in a first government job, finds himself
dismantling General Motors and rewriting the rules of American capitalism. But that, in
short, is the job description for Brian Deese, a not-quite graduate of Yale Law
School who had never set foot in an automotive assembly plant until he took on his
nearly unseen role in remaking the American automotive industry…
A bit laconic and looking every bit the just-out-of-graduate-school student
adjusting to life in the West Wing — “he’s got this beard that appears and disappears,”
says Steven Rattner, one of the leaders of President Obama’s automotive task force
— Mr. Deese was thrown into the auto industry’s maelstrom as soon the election-night
parties ended... he has emerged as one of the most influential voices in what may
become President Obama’s biggest experiment yet in federal economic intervention.
In May, the dividend-paying stocks (362) in the S&P 500 (equal weight) posted
a total return of 5.89%, vs. 7.12% for the non-payers (138), according to Standard &
Poor's.
Year-to-date, the payers are down 1.61%, vs. a gain of 24.12% for the non-
payers.
The four-week flood of money into developing-nation stock funds that drove the
MSCI Emerging Markets Index to an eight- month high is sending the strongest sell
signal since equities peaked in October 2007.
Inflows totaled $12 billion, or 3.5 percent of developing- nation fund assets, the
most since the 22- country benchmark hit its record high 19 months ago, said EPFR
Global, which tracks $10 trillion in investments worldwide. The only other time since

7
2001 that funds attracted as much cash, in February 2006, the MSCI gauge lost 8.4
percent in four months.
Unemployment in the U.S. probably surpassed 9 percent in May for the first
time in more than 25 years, underscoring forecasts that the economy will be slow to
pull out of the worst recession in half a century, economists said before a report this
week.
The jobless rate climbed to 9.2 percent, the highest level since September
1983, according to the median of 59 estimates in a Bloomberg News survey before the
June 5 Labor Department report. Other data may show manufacturing and service
industries shrank at a slower pace and consumer spending dropped.
“The economy is decaying at a slower rate and that is the best you can say,”
said Steven Ricchiuto, chief economist at Mizuho Securities USA Inc. in New York. “I
can’t tell you we are out of the woods yet.”
Under Christopher Cox, former chairman of the Securities and Exchange
Commission, penalties imposed on companies fell 84 percent, from $1.59 billion in
2005 to $256 billion in 2008.
When Cox took office in mid-2005, there was concern within government and
the financial industry that the United States was losing business to less-regulated
foreign markets, and some SEC commissioners believed that corporate penalties
ultimately harmed shareholders.
During Cox's tenure, penalties often were not sought, several former and
current agency officials said. "People openly discussed that if you wanted to get your
case done quickly, you didn't put in a civil penalty," a former enforcement lawyer said.
In two cases involving large banks, the commission eased the penalties sought
by the staff. Last year, the commission slashed the penalty proposed in a case against
J.P. Morgan Chase. The bank was accused of ignoring improper transactions at one
its clients that had cost investors $2.6 billion. J.P. Morgan agreed to pay a $2 million
penalty to settle the case.
In late 2006, the SEC enforcement staff sought a penalty of $122 million
against Deutsche Bank, which was charged with granting a hedge fund exclusive
information about trading by mutual funds in exchange for business. The commission
proposed reducing the fine to $17 million.
In paying penalties, neither company admitted or denied wrongdoing.
MetLife Inc., the largest U.S. life insurer, is considering acquiring assets
through the Treasury program to relieve banks of toxic holdings.
“If we were to do something” with the Public-Private Investment Program for
Troubled Assets, “it would be as a buyer, not a seller,” MetLife Chief Investment
Officer Steve Kandarian said today at a conference in New York.
Bank of America Corp. doesn’t have to pay a verdict worth as much as $1.6
billion in a customer lawsuit claiming the bank illegally took overdraft fees out of Social
Security direct deposits, the California Supreme Court ruled.
The state high court upheld an appeals court ruling that reversed the verdict
against Bank of America in 2006.
Manufacturing in the U.S. shrank less than forecast in May as new orders
increased for the first time since the recession began, a sign that companies are
growing more confident the slump will end this year.
The Institute for Supply Management’s factory index rose to 42.8 from 40.1 in
April. Readings of less than 50 on the Tempe, Arizona-based group’s gauge signal a
contraction. The new-orders measure jumped to 51.1 from 47.2.

8
 General Motors Corp., shrinking operations in bankruptcy, said it will close 12
more plants by the end of 2011 under an accelerated plan to shutter 30 percent of its
U.S. factories.
GM will have 33 U.S. assembly, powertrain and stamping facilities once it’s
done with those cuts and 2 other closings announced previously, according to a
statement today. The automaker had 47 such sites at the end of last year.
The moves will speed up GM’s original timetable to finish the closings by 2012
as the Detroit-based automaker works to exit bankruptcy quickly. GM plans to shed
half of its eight U.S. brands and is trimming its dealer network after almost $88 billion
in losses since 2004.
“Our manufacturing operations, which already are among the most productive
in the industry, will emerge even leaner and more flexible, as part of the new GM,” said
Gary Cowger, group vice president of GM global manufacturing and labor relations.
Three of the 14 factories are being idled without being targeted for a permanent
closing, GM said. They are assembly plants in Orion Township, Michigan, and Spring
Hill, Tennessee, and a stamping facility in Pontiac, Michigan.
US Construction Spending increase 0.8% MoM in April.
The income of Americans unexpectedly surged in April, elevated by the
economic stimulus package, while spending declined and the level of savings
increased to the highest in 50 years of records.
Personal income rose at a seasonally adjusted rate of 0.5% compared to the
month before, the Commerce Department said Monday. Income fell a revised 0.2% in
March; originally, income was seen down 0.3%.
Personal consumption in April fell 0.1% compared to the month before.
Spending decreased a revised 0.3% in March; originally, spending was seen falling
0.2%.
Economists surveyed by Dow Jones Newswires forecast a 0.2% decrease in
personal income during April and a 0.1% drop in consumer spending.
Disposable personal income - income after taxes - jumped 1.1% in April.
The stimulus plan, signed by President Barack Obama in February, drove up
personal current transfer receipts; it provided an extra payment for the unemployed.
Taxes also fell, the income data Monday showed; the stimulus included tax credits.
Personal saving as a percentage of disposable personal income was 5.7% in
April, the Commerce Department said. It was 4.5% in March and 4.1% in February.
The 5.7% rate was the highest since 5.9% in February 1995; the personal savings
level of $620.2 billion was the largest since records began in January 1959.
US April Personal Spending decreases 0.1% MoM.
US April Personal Income rises 0.5%.
Nearly half a dozen Department of Motor Vehicle employees in south Florida
have been criminally charged for selling illegal immigrants official state driver’s
licenses.
It marks the second time in less than two years that motor vehicle employees in
the Sunshine State get busted for selling the coveted cards to illegal aliens. In late
2007 a state employee in the northern city of Tampa got federally charged with 174
counts of fraud, corruption and official misconduct for operating a large-scale
enterprise that sold valid driver’s licenses to illegal immigrants for cash.
The five employees charged this week worked at the DMV office located in
south Florida’s Del Ray Beach. Authorities say they issued licenses to illegal aliens
who produced fraudulent passports or foreign visitor forms as identity and proof of
presence in the United States.

9
 Each motor vehicle employee has been charged with four felonies, including
driver’s license fraud, official misconduct, unlawful compensation and computer
crimes. Each charge carries a maximum penalty of five years in prison. Federal
authorities say the investigation into the issuance of Florida driver’s licenses to illegal
immigrants is ongoing.
This clearly presents a national security issue since several of the September
11 terrorists used illegally obtained authentic driver’s licenses to board the planes they
hijacked. In fact, the 9/11 Commission said that identification cards—such as
licenses—are as important to terrorists as explosives.
Home sales will likely keep rising, a report suggested Tuesday, as buyers seize
on foreclosure-cheapened property, low interest rates and a tax credit.
The National Association of Realtors' index for pending sales of previously owned
homes increased a third month in a row, rising 6.7% in April to 90.3 from 84.6 in
March, the industry group said Tuesday.
Year over year, the index was 3.2% above the level of 87.5 in April 2008.
The index is based on signed contracts for previously owned homes and serves as a
forecasting tool for the used housing market.
The 6.7% monthly increase was much larger than the 0.5% advance private
analysts projected for April.
Last week, the NAR reported existing-home sales rose in April, the second
increase in three months. Home resales increased 2.9% to a 4.68 million annual rate;
about 45% were foreclosures and short sales.
"Housing affordability conditions have been at historic highs, but now the
$8,000 first-time buyer tax credit is beginning to impact the market," said Lawrence
Yun, chief economist for NAR. "Since first-time buyers must finalize their purchase by
Nov. 30 to get the credit, we expect greater activity in the months ahead, and that
should spark more sales by repeat buyers."
The NAR projects existing-home sales at 4.98 million this year and 5.28 million
in 2010. That compares with 4.91 million in 2008. The median price for an existing
home is seen at $183,100 in 2009 and $190,300 in 2010. It was $198,100 in 2008.
A month ago, the NAR forecast 2009 sales at 4.97 million and 2010 sales at 5.28
million. The 2009 median price was projected at $188,500 and the 2010 price at
$196,800.
The NAR's pending home sales index was designed to try measuring which way the
housing market is going in the future. It is based on pending sales of existing homes,
including single-family homes and condominiums. A home sale is pending when the
contract has been signed but the transaction hasn't closed. Pending sales typically
close within one or two months of signing.
By region, the pending sales index for the Northeast increased 32.6% in April
from March; it had gone up 0.8% since April 2008. The Midwest increased 9.8% in
April from March; it had gone up 11.1% since April 2008. The South decreased 0.2%
in April from March; it had gone up 3.5% since April 2008. The West increased 1.8% in
April from March; it had gone down 2.9% since April 2008.
Investors applied for $11.45 billion in loans from the Federal Reserve to buy
bonds backed by consumer debt in the fourth round of such funding.
The Fed gives loans to investors through its Term Asset-Backed Securities
Loan Facility, or TALF, at attractive rates as part of its effort to revitalize the asset-
backed securities market.
In May, investors applied for $10.6 billion in loans. That was a big jump from March,
when the program was launched and investors applied for $4.7 billion in loans. In April,
that figure had dropped to $1.7 billion.

10
 About $16 billion of securities backed by consumer loans sold Tuesday ahead
of the application deadline.
"Investors are very interested in these bonds," said Jim Harrington, senior
portfolio manager at Ryan Labs Asset Management in New York. "Many of the deals
were upsized." Chesapeake Funding LLC's bond was doubled in size, to $2 billion, as
was Ford Motor Co.'s (F) FCALT 2009-B bond, which rose from $1 billion to $2 billion.
Ford and Citigroup Inc. (C) sold two bonds each that are eligible for TALF.
Citi's $4 billion credit-card-loan-backed deal, the Citi Omni 2009-A deal, was the
largest in this round.
Other issuers include auto makers BMW AG (BMW.XE), with a $2 billion deal,
Nissan Motor Co. (NSANY), with a $1 billion bond, John Deere Owner Trust and PFS
Financing Corp.
U.S. overall consumer confidence worsened for a third straight week, according
to an ABC News poll released Tuesday.
The consumer comfort index fell two points to -49 in the week ended May 31,
from -47 a week earlier and -45 a week before that.
According to the survey, 7% of respondents expressed confidence in the
economy, down from 8% the week before. Also, 45% of those polled said their own
finances were in good standing, down from 46% in the prior week. In assessing the
buying climate, 24% of respondents said it was good, down from 25% a week earlier.
The International Council of Shopping Centers and Goldman Sachs Retail
Chain Store Sales Index fell 0.6% in the week ended Saturday from its level a week
before on a seasonally adjusted, comparable-store basis.
On a year-on-year basis, retailers saw sales rise 0.6%.
National chain store sales fell 0.3% in the first four weeks of May versus the
previous month, according to Redbook Research's latest indicator of national retail
sales released Tuesday.
The drop was in contrast to a targeted 0.1% decline.
The Johnson Redbook Index also showed seasonally adjusted sales in the
period were down 0.1% from a year earlier, compared to a targeted 0.2% rise.
Redbook said that on an unadjusted basis, sales in the week ended Saturday were up
0.1% from the same week in 2008 after a 0.5% drop the prior week. Results in the
latest week were aided by Memorial Day, along with some graduation shopping.
Looking ahead, Redbook's preliminary June view is for 0.2% growth from a year earlier
and up 0.3% from May. The estimates will be finalized in the next week. The five-week
period for June ends July 4.
JPMorgan Chase & Co., the second- largest U.S. bank by deposits, raised $5
billion by selling common stock to repay a government cash infusion.
The New York-based lender sold 142 million shares for $35.25 each, a 2.4
percent discount to yesterday’s closing price of $36.11, according to Bloomberg data.
JPMorgan was told by the Federal Reserve to raise funds to comply with a rule
requiring banks that took U.S. rescue funds to tap equity markets before they can
repay the money. The bank was among nine deemed to have no need for additional
capital after U.S. stress tests of 19 lenders were completed last month.
JPMorgan hasn’t yet been granted approval to repay the $25 billion it received
through the Troubled Asset Relief Program. It expects to do so by the end of June.
Unlike rivals Morgan Stanley and Goldman Sachs Group Inc., JPMorgan hadn’t sold
shares to the public this year.
JPMorgan, Goldman Sachs and Morgan Stanley have applied to refund a
combined $45 billion of government investments, a step that would mark the biggest

11
reimbursement to taxpayers since the $700 billion bank bailout program began in
October.
This is why the market is been held up by the FED, so that they can dump their
stock on the market at high prices.
The odds that a local police officer in Massachusetts has access to a military-
grade assault rifle, whether in the trunk of a cruiser or at a police station, are far
stronger than authorities have previously revealed.

Some 82 cities and towns across the Commonwealth have introduced a total of
1,057 such rifles to their arsenals over the last decade, state public safety officials
confirmed yesterday, many of them acquired in recent years in response to the fear of
terrorist attacks.
State officials refused to release a list of which cities and towns have deployed
what weapons, citing security concerns.
The latest police force to obtain the increased firepower appears to be the
MBTA, which just spent $13,000 on a set of semi-automatic assault rifles - 10
Bushmaster, long-range M4s. The T is developing plans to distribute them to transit
patrol officers for use in violent emergencies such as terrorist assaults or shooting
rampages by individual civilians, transit officials said.
Companies in the U.S. cut an estimated 532,000 workers from payrolls in May
as the labor market showed little sign of improving even as the recession abated, a
private report showed today.
The drop in the ADP Employer Services gauge was higher than economists
forecast. April’s reading was revised to show a reduction of 545,000 workers, up from
a previous estimate of 491,000.
Companies from General Motors Corp. and Chrysler LLC to American Express
Co. continue to cut jobs to control costs even as the economy shows signs of
stabilizing. Mounting unemployment will restrain consumer spending, muting any
recovery.
“We really haven’t seen much evidence that things are turning around on the
labor front,” Mark Vitner, a senior economist at Wachovia Corp. in Charlotte, North
Carolina, said before the report.
Economists forecast the ADP report would show a decline of 525,000 jobs,
according to the median of 28 estimates in a Bloomberg News survey. Projections
ranged from decreases of 425,000 to 580,000.
A government report on June 5 may show payrolls at companies and
government agencies shrank by 520,000 in May and unemployment rose to a 25-year
high of 9.2 percent, according to a Bloomberg survey of economists.
Job-cut announcements last month showed the smallest increase in more than
a year, Chicago-based placement firm Challenger, Gray & Christmas Inc. also said
today. Planned firings rose to 111,182, up 7.4 percent from May 2008. The rise was
the smallest since firings last dropped in February 2008.
Today’s ADP report showed a reduction of 267,000 workers in goods-
producing industries including manufacturers and construction companies.
Employment in manufacturing dropped by 149,000. Service providers cut 265,000
workers.
Companies employing more than 499 workers shrank their workforces by
100,000 jobs. Medium-sized businesses, with 50 to 499 employees, cut 223,000 jobs
and small companies decreased payrolls by 209,000.
“Despite some recent indications that economic activity is stabilizing,
employment, which usually trails overall economic activity, is likely to decline for at

12
least several more months,” Joel Prakken, chairman of Macroeconomic Advisers, said
in a statement.
The ADP report is based on data from 500,000 businesses. ADP began
keeping records in January 2001 and started publishing its numbers in 2006.
One of our short recommendations: Toll Brothers Inc., the largest U.S. luxury
homebuilder, reported a narrower second-quarter loss after writedowns for land,
developments and options fell by almost $170 million.
The net loss for the three months ended April 30 shrank to $83.2 million, or 52
cents a share, from $93.7 million, or 59 cents, a year earlier, the Horsham,
Pennsylvania-based company said in a statement today. Toll was projected to post a
loss of 45 cents a share, according to the median of 12 analysts in a Bloomberg
survey.
Toll, the third-worst performing U.S. homebuilding stock this year, has lost
almost a third of its value since 2006 as the housing slump and the recession have cut
demand. Toll reduced the price of its homes and offered buyers incentives in an effort
to halt a slide in revenue.
Mortgage applications in the U.S. dropped last week as the biggest jump in
mortgage rates in seven months pushed down refinancing.
The Mortgage Bankers Association’s index of applications to purchase a home
or refinance a loan fell 16 percent to 658.7 in the week ended May 29, from 786 the
week before. The group’s refinancing gauge plunged 24 percent, while the purchase
measure increased 4.3 percent.
An improving economic outlook in recent weeks has pushed up borrowing
costs and caused homeowners to shy away from refinancing. At the same time, prices
are still declining and borrowing costs are below year-earlier levels, making housing
more affordable to some prospective buyers and helping to stabilize the market.
“This increase in rates would hit refinancing given they seem to be quite
responsive to mortgage rates,” Abiel Reinhart, an economist at JPMorgan Chase &
Co. in New York, said before the report. “Home sales look to be relatively stable.
They’ve already reached a trough earlier in the year, but they haven’t picked up just
yet.”
The mortgage bankers’ refinancing gauge decreased to 2,953.6, the lowest
level since February, from 3,890.4 the previous week. The purchase index rose to
267.7, a two-month high, from 256.6.
The share of applicants seeking to refinance loans fell to 62.4 percent of total
applications from 69.3 percent.
The average rate on a 30-year fixed-rate loan rose to 5.25 percent, the highest
level since January, from 4.81 percent the prior week. The increase was the biggest
since October.
The rate reached 4.61 percent in late March, the lowest level since the
mortgage bankers group began records in 1990.
At the current 30-year rate, monthly borrowing costs for each $100,000 of a
loan would be about $552. That is about $59 less than the same week a year earlier,
when the rate was 6.17 percent.
The average rate on a 15-year fixed mortgage rose to 4.80 percent from 4.44
percent the prior week. The rate on a one-year adjustable mortgage increased to 6.61
percent from 6.55 percent.
The Washington-based Mortgage Bankers Association’s loan survey, compiled
every week, covers about half of all U.S. retail residential mortgage originations.

13
 A report from the National Association of Realtors yesterday showed the
number of Americans signing contracts to buy previously owned homes climbed 6.7
percent in April, the biggest gain in more than seven years.
The United States government is pursuing a visa-fraud case against a New
Jersey IT company and will submit as evidence a report that will show the number of
foreign tech workers using H-1B visas outnumbers the number of unemployed
American tech workers.
According to an article on ComputerWorld.com, the government says that "in
January of 2009, the total number of workers employed in the information technology
occupation under the H-1B program substantially exceeded the 241,000 unemployed
U.S. citizen workers within the same occupation."
The U.S. issues 85,000 H-1B visas per year. The visas are awarded to highly-
skilled foreign workers usually in the fields of technology or health care. Companies
must show that there is not an adequate number of American workers to fill open jobs
before requesting H-1B visas.
The H-1B program continually comes under allegations of fraud, and Sens.
Charles Grassley (R-IA) and Bernie Sanders (I-VT) have proposed legislation to
revamp the program. They successfully added an amendment to the economic
stimulus bill that was passed in February restricts banks that utilize TARP money from
hiring H-1B workers.
Improved home affordability and a government program that provides an
$8,000 tax cut for first-time buyers was responsible for home buying activity.
Philadelphia Fed President Charles Plosser says the Fed should not be
involved in financing toxic assets from the bubble era. It exposes the Fed to credit risk
that ties up a big chunk of its balance sheet in long-term assets that would be hard to
price and difficult to liquidate.
Moody’s says it expects US rated banks will incur a total of approximately $470
billion of loan and security losses with write-downs in 2009 and 2010. The lending
portion of this estimated loss is $415 billion, or 8% of the industry’s outstanding loans
at the end of last year.
The dollar dropped to its lowest level against the euro this year on speculation
record U.S. borrowing will undermine the greenback, prompting nations to consider
alternatives to the world’s main reserve currency. The 16-nation euro gained for a
fourth day versus the dollar as the Russian government said emerging-market leaders
may discuss the idea of a supranational currency.
Beginning in Q3 2008, pendings became a highly volatile series that is not
representative of future sales for many reasons. One of the most obvious is short-sale
volume. When a short sale offer is accepted by the seller, the seller then has to go to
the bank and get it approved -- it’s a backward process. If the Realtor marks it as a
pending in the MLS -- which happens in more cases than not -- then it shows up as
pending and makes the monthly report. But if the bank subsequently does not approve
the short sale price -- which also happens in more cases than not -- then the pending
sale generally dies.
David Rosenberg: Long-term, we believe that the U.S. economy is in a gigantic
mess and that risk-taking in the stock market is not going to be rewarded on a
sustained basis. We continue to hold the view that the stock market, which peaked in
2007 just two months shy of the most intense recession in 70 years, is vastly overrated
as a forecasting device and we strongly believe that portfolios will need to be cash-
generating machines.
Look at this way — we are going to be hard-pressed to see operating EPS much
better than $43 this year. A ‘normal’ first-year earnings bounce is 20%, and again this

14
is being generous, but that would leave us with $52 EPS for 2010. We give that
prospect very little chance of occurring, and we have some difficulty with the stock
market going ahead and pricing in an earnings profile that is likely four or more years
away from occurring.
http://zerohedge.blogspot.com/search/label/David%20Rosenberg

Mr. Rosenberg also notes: Two historical factoids underscoring just how
overbought this market really is: Going back to 1950, not once has the S&P 500
managed to surge more than 40% in advance of the recession ending. I think mostly
everyone would agree that while the recession may be in its final stages,
it is not over just yet.
Again, back to 1950, by the time the S&P 500 was up 42% from a bear market low
(as is now the case), not only was the economy not in recession at that point, but it
was typically nine months into recovery mode.
https://ems.gluskinsheff.net/Login.aspx?ReturnUrl=%2fArticles%2fLunch_with_Dave_
060209.pdff

While “truly massive fiscal and monetary stimulus is at work,” he said, “a full
recovery will be a matter of years. Volcker, 81, decried growing U.S. debt, saying the
nation has long been spending beyond its means. The U.S. faces “an unimaginable
budget deficit as far as one can see,” he said. “Foreign countries have been for a long
while willing to finance our excess spending, but that process can’t continue forever,”
he said.
“The federal government and the Federal Reserve have been forced to ride to the
rescue by ways and means never before contemplated, implying both a degree of
porisk that are bound to preoccupy us for years,” Volcker said.
Federal Reserve officials surprised bankers in the past week by demanding they
raise specific amounts of new capital before repaying taxpayer funds, applying a more
stringent assessment than the stress tests in May. That is why the Fed is holding the
market up.
Not long after the bottom fell out of the market for mortgage securities last fall, a
group of financial firms took aim at an accounting rule that forced them to report
billions of dollars of losses on those assets.
Marshalling a multimillion-dollar lobbying campaign, these firms persuaded key
members of Congress to pressure the accounting industry to change the rule in April.
The payoff is likely to be fatter bottom lines in the second quarter.
Earlier this year, financial-services organizations put their lobbyists on the case.
Thirty-one financial firms and trade groups formed a coalition and spent $27.6 million
in the first quarter lobbying Washington about the rule and other issues, according to a
Wall Street Journal analysis of public filings.
They also directed campaign contributions totaling $286,000 to legislators on a
key committee, many of whom pushed for the rule change, the filings indicate
For April 2008, the ‘Total Nonfarm over-the-month change, not seasonally
adjusted’ showed a gain of 599k jobs. For May it was 647k jobs. Ergo, May increased
48k jobs over April. The BLS’s goofy Net Birth/Death model created 176k jobs for both
April and May 2008.
The Street consensus is for NFP to show a loss of 520k jobs, which is 19k fewer
job losses than April. Last year’s BLS data coupled with BLS’s inert methodology
augurs for 500k or fewer job losses.
The Justice Department has rejected Georgia's system of using Social Security
numbers and driver's license data to check whether prospective voters are citizens, a

15
process that was a subject of a federal lawsuit in the weeks leading up to November's
election.

*****
http://mgray12.wordpress.com/2009/06/01/breaking-the-buck/
Who is defending the greenback, Washington or Beijing? Michael Gray
Deputy Sunday Business
mgray@nypost.com

*****
Jesse Ventura on Alex Jones TV: No More Torture!
http://www.youtube.com/watch?v=PPK4h23MXt0&eurl=http%3A%2F%2Frevolutionary
politics%2Ecom%2F%3Fp%3D969&feature=player_embedded

*****
Jones / Tarpley
http://www.mediafire.com/download.php?wmgkdjjetm2

*****

Daniel Estulin's "True Story of the Bilderberg Group" and What They May Be
Planning Now
by Stephen Lendman
http://sjlendman.blogspot.com/

*****
Remembering Father Gerry
by Stephen Lendman
http://sjlendman.blogspot.com/
*****

Taguba Saw "Video of Male Soldier Sodomizing Female Detainee"

http://www.truthout.org/052909R
*****
BORN IN THE USA?
Birth certificate issue No. 1 at Fox News
Obama eligibility most talked about topic on news website
http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=99549
*****
Jekyll Island: A New Beginning For America
http://republicbroadcasting.org/?p=2133

*****
WeAreChangeLA challenges Lesley Gelb, ex-President CFR
http://www.youtube.com/watch?v=441vYKowIzM
*****
Sotomayor-La Raza link questions spread
CNN, MSNBC feature comments from critic of illegal immigration
http://www.wnd.com/index.php?fa=PAGE.printable&amp;pageId=99563
*****

16
Did Bernanke and Paulson Commit Bank Fraud?
by Thomas R. Eddlem
http://www.globalresearch.ca/index.php?context=va&aid=13786
*****

Sotomayor's a lightweight
Pat Buchanan: Judge 'covers up her intellectual inadequacy by bullying from the
bench'
By Patrick J. Buchanan
http://www.wnd.com/index.php?fa=PAGE.view&pageId=99514

*****
Economic Collapse to Trigger Social Pandemonium
http://mercatoliberonews.blogspot.com/2009/04/economic-collapse-to-trigger-
social.html
*****

EVIDENCE OF GOVERNMENT MANIPULATION OF THE STOCK MARKET - Dan

Shaffer explains on Fox Business News (video and transcript)
http://myprops.org/content/EVIDENCE-OF-GOVERNMENT-MANIPULATION-IN-
THE-STOCK-MARKET-Dan-Shaffer-explains-on-Fox-Business-News-video-and-
transcript/
*****

Metro Dig at Tysons Stirs Underground Intrigue

High Anxiety Over Top-Security Cable
By Amy Gardner Washington Post Staff Writer Sunday, May 31, 2009
http://www.washingtonpost.com/wp-
dyn/content/article/2009/05/30/AR2009053002114_pf.html
*****

Tales From the Dark Side Torture and the American Conscience
http://lewrockwell.com/roberts/roberts267.html

*****
Ron Paul: Fight Government Encroachment into Healthcare!
http://www.youtube.com/watch?v=iSNfkrOHHg4
*****
BOND TACTIC BLOWS UP IN BERNANKE'S FACE
http://www.nypost.com/seven/05312009/business/bond_tactic_blows_up_in_ber
nankes_face_171821.htm
*****
Is Larry Summers Taking Kickbacks From the Banks He’s Bailing Out?
http://www.truthdig.com/report/item/20090530_is_larry_summers_taking_kickba
cks_from_the_banks_hes_bailing_out/?ln
*****
Family of Secrets
http://www.brasschecktv.com/page/636.html
*****
Today we’re all prisoners in the USA

17
http://www.infowars.com/today-were-all-prisoners-in-the-usa/
*****
Schwarzenegger says day of reckoning is here
http://www.bizjournals.com/sacramento/stories/2009/06/01/daily29.html
*****
From a Fellow Subscriber:
If you believe in the Constitution and your second amendment rights watch this.
Believe it or not, this was on CNN- /Lou Dobbs. Shows the extent to which Obama
and the Democrats will go to eliminate the Second Amendment, and this by using a
foreign treaty as the process- watch this.
You have to see this to believe it!!
http://wearechangecoloradosprings.org/blog/?p=594

*****
National sales tax idea getting fresh look
http://seattletimes.nwsource.com/html/politics/2009271165_salestax28.html

*****
STRONG BANKS LOOK TO BUY FAILING BANKS
http://www.nypost.com/seven/06012009/business/blood_in_the_water_171878.ht
m
*****
Geithner tells China its dollar assets are safe
http://www.reuters.com/article/companyNewsAndPR/idUSPEK14475620090601
*****
Big Brother asks: 'Do you have a flush toilet?'
Mandatory Census survey inquires about citizens' difficulty undressing, bathing
http://www.wnd.com/index.php?fa=PAGE.printable&pageId=99337
*****
Grand Theft Auto: How Stevie the Rat bankrupted GM
http://www.gregpalast.com/grand-theft-auto-how-stevie-the-rat-bankrupted-
gm/?print=1
*****
GOODBYE GM
http://www.michaelmoore.com/
*****
Sotomayor—A Quota Queen for the Court
http://www.vdare.com/buchanan/090601_sotomayor.htm

*****
Digital TV: Mind Control by the Sound of Silence
http://www.wariscrime.com/2008/12/15/news/digital-tv-mind-control-by-the-sound-of-
silence/
*****
From Ordering Steak and Lobster, to Serving It
http://online.wsj.com/article/SB124390425824574861.html
*****

The Dark Side of Plan Colombia

http://www.truthout.org/060309K

18
 *****
The Big Collapse Could Be Very Near
by Robert Wenzel
http://www.globalresearch.ca/index.php?context=va&aid=13826
*****
Workers at closing GM plants: 'Why us?'
http://cosmos.bcst.yahoo.com/up/ynews;_ylt=AihCVDMbqAKfB9d4uG5akCWs0NUE;_
ylu=X3oDMTI1bWlxOW9vBGFzc2V0A2FwLzIwMDkwNjAyL3VzX29iYW1hX2dtBGNw
b3MDMQRwb3MDNARzZWMDeW5fdG9wX3N0b3J5BHNsawN2aWRlbw--
?ch=4226716&amp;cl=13762832&amp;lang=en

Anyone who plans to buy a GM car needs to check to see what country is was made
in. If that country is Mexico, China, Indonesia, South Africa, South America, Canada
or Russia, they need to say no thanks to foreign cars and trot over to their local
Toyota, Honda or Hyundai dealership and buy an American-made car. Giving GM $30
billion more so they can complete their plants in Russia, Argentina, China or South
Africa...and then layoff more GM workers in the United States is stupid bordering on
criminal.
*****

Eligibility debate explodes on White House 'dialogue' site

77% of voters demand Obama release long-form birth certificate
By Chelsea Schilling
http://www.wnd.com/index.php?fa=PAGE.view&pageId=99884

*****
“Just A Child With A Temper”
http://www.infowars.com/just-a-child-with-a-temper/
*****

Fed’s Role in AIG May Be First Target of GAO Audit

http://www.bloomberg.com/apps/news?pid=20601103&sid=aXLmKxJCk3fY&refe
r=news
*****
Ford Making Inroads Despite Slump
http://www.washingtonpost.com/wp-
dyn/content/article/2009/06/02/AR2009060203396.html?wpisrc=newsletter
*****

From a Fellow subscriber:

Did you see the related links to the alleged court case documents under this site?
http://www.supremelaw.org/cc/fox2/insolvency.htm

It appears that this is a lawsuit for bankruptcy protection files by the Eastern District of
Washington:
http://www.supremelaw..org/cc/fox2/insolvency.explained.htm

Curiously, this happened March 31st, almost 2 months ago yet we have not heard a
word about it. Not even in the "alternative media".
*****

19
From a Fellow Subscriber:
BOB
RE: ELLEN BROWN'S WEB OF DEBT

I THINK THIS IS THE MOST SIGNIFICANT BOOK ON ECONOMIC ISSUES

WRITTEN SINCE THE PROTESTANT REFORMATION. MY COPY ARRIVED THIS
WEEK, AND SINCE I WAS FAIRLY FAMILIAR WITH THE CROOKEDNESS OF THE
BANKING INDUSTRY, THE PROBLEMS ASSOCIATED WITH PAYING INTEREST
TO BANKS FOR THE CURRENCY WE USE IN DAILY LIFE, AND THE SNEAKY
HAVOC WROUGHT BY FRACTIONAL RESERVE BANKING & THE FED, I SKIPPED
TO THE END AND READ MS. BROWN'S SOLUTIONS. CLEARLY, HAVING THE
GOV'T ISSUE ITS OWN CURRENCY WITH OUT THE SAY SO OR PROFIT OF
PRIVATE BANKING CONCERNS, GETTING THE FDIC TO LIQUIDATE THE
"ZOMBIE" BANKS BY PUTTING THEM INTO RECEIVERSHIP, AND PAYING OFF
INTERNAL DEBT WITH THE NEW GREENBACKS IS A STEP IN THE RIGHT
DIRECTION (WHO KNOWS, IF THE "ZOMBIES" ARE THAT BANKRUPT, THERE
MAY BE NOTHING OF NET VALUEE LEFT THAT NEEDS TO BE REIMBURSED TO
THEIR SHAREHOLDERS), AS WOULD A NATIONAL BANK OWNED BY THE
GOVERNMENT THAT HANDLED ALL LENDING OF MONEY AND INJECTION OF IT
INTO THE ECONOMY IN THE COUNTRY, AT LOW OR NO INTEREST. BROWN
BORDERS VERY CLOSELY ON MY VIEW THAT UNPAYABLE USURY AND DEBT
BONDAGE ARE AT THE HEART OF OUR ECONOMIC AND SOCIAL PROBLEMS.
HOWEVER, I DISAGREE SOMEWHAT WITH HER SUGGESTION THAT
ULTIMATELY SOME SORT OF INTERNATIONAL CURRENCY MIGHT HAVE TO BE
ISSUED BY A WORLD PARLIAMENT IN ORDER TO FACILITATE INTERNATIONAL
TRADE, ETC. . . GIVING UP THE NATION'S RIGHT TO ISSUE ITS OWN
CURRENCY AND TURNING THAT FUNCTION OVER TO PRIVATE BANKERS, I.E.,
GIVING UP THE ESSENCE OF SOVEREIGNTY IS WHAT GOT US INTO THE MESS
WE NOW FIND OURSELVES IN AFTER ALMOST 100 YEARS OF THE FED. TO ME
THE WHOLE CONCEPT OF A BASKET OF COMMODITIES AS OPPOSED TO
GOL.D AND SILVER WOULD BE A BUREAUCRATIC MESS, RIPE FOR FRAUD
AND SPECULATION. BROWN ARGUES THAT GOLD CHASNGES IN VALUE.
TRUE, BUT THE ISSUE IS NOT WHETHER IT CHANGES IN VALUE RELEVANT TO
THE CURRENCY, BUT WHETHER IT REALLY CHANGES IN RELATION TO
PURCHASING POWE, AND ON THAT SCORE, I THINK YOU AND I TEND TO
AGREE, THAT IF ANYTHING, THE PURCHASING POWER OF GOLD HAS BEEN
DEPRESSED BY THE PPT AND THE ELITIST BANKERS. IF ENTITIES FROM
OUTSIDE THE COUNTRY WANT TO BUY OUR PRODUCTS, THEY CAN USE OUR
CURRENCY. HOW THEY GET OT IS BASICALLY THEIR PROBLEM.

I RECOGNIZE THAT THE FEAR OF THOSE OF US WHO TEND TO BE

SOMEWHAT "GOLD-BUGGISH" IS WORRY ABOUT POLITICIANS CREATING
INFLATION TO MAKE THEIR PROMISES "COME TRUE." HOWEVER, THE MONEY
SOPPLY COULD NOT BE INFLATED ANY MORE THAN IT IS NOW WITH
INTEREST BEING PAID TO THE CENTRAL PRIVATE BANKS FOR USE OF OUR
MONEY AND THEM CREATING ADDITIONAL MONEY INTO THE ECONOMY WITH
THE SLEIGHT OF HAND KNOWN AS FRACTIONASL RESERVE BANKING. MY
GUESS IS THAT ONCE THE GOVERNMENT TOOK OVER THE ISSUANCE OF
CURRENCY AND CONTROLLED THE CREATION OF ADDITIONAL MONEY VIA

20
CREDIT, ETC . . . THAT THE "VALUE" OF THAT CURRENCY WOULD STABILIZE,
AND AT THAT POINT IT COULD BE KEYED TO A RANGE OF PRECIOUS METALS
PRICES.

BROWN'S SUGGESTIONS FOR GREEN ENREGY ARE INTERESTING, THOUGH

POSSIBLY NOT TERRIBLY PRACTICAL. I TEND TO AGREE WITH DR. ART
ROBINSON (OISM) THAT THE SOLUTION TO THIS COUNTRY'S ENERGY
PROBLEMS IS NUCLEAR, 50 PLANTS CONSISTING OF 10 REACTORS EACH
THROUGHOUT THE COUNTRY, A 2-4 TRILLION DOLLAR PROJECT (AFTER THE
LAWYERS AND ENVIROS GET THEIR PICE OF THE ACTION) THAT COMBINED
WITH BREEDER REACTORS WOULD TRCYCLE NUCLEAR FUEL ALMOST AD
INFINITUM. FUNDED BY THE GOVERNMENT ISSUING ITS OWN CURRENCY
WOULD REDUCE THE COSTS SIGNIFICANTLY, PROBABLY BY HALF OR MORE.
BROWN'S CONCEPT THAT GOVERNMENT SHOULD OWN AND OPERATE ALL
INFRASTRUCTURE, INCLUDING UTILITIES, FOR THE BENEFIT OF THE PUBLIC
ALSO MAKES SENSE. UNFORTUNARTELY, GETTING THE GRAFT AND
POLITICAL PULL OUT OF, AND THE ENTREPRENEURIAL SPIRIT INTO, THE
MANAGEMENT OF THESE TYPES OF ENTERPRISES MIGHT TAKE SOME
SERIOUS DOING. BUT IT WOULD PUT ENOUGH OF A DENT ON THE PRICE OF
OIL AND GAS TO UPSET THE WHOLE BASKET OF COMMODITIES IDEA AS A
BASIS FOR VALUING GOVERNMENT ISSUED CURRENCY!

I PROMISE TO GET INTO THIS BOOK FROM THE VERY BEGINNING, RATHER
THAN JUMPING TO THE "SOLUTION" PART AT THE END, AS I HAVE. I
HEARTILY RECOMMEND THAT EVERY IF READER BUY AT LEAST ONE COPY,
AND DIGEST IT OVER THE SUMMER. IT TRULY OFFERS SOME INNOVATIVE
IDEAS AS TO HOW TO RESOLVE THE CRISIS WE ARE IN LEGALLY, AND
WITHOUT "TAKING" ANYONE'S PROPERTY OR VIOLATING THEIR
CONTRACTUAL RIGHTS. THEIR EXTRA COPIES THEY CAN GIVE TO THEIR
KIDS, RELATIVES, FRIENDS, PASTORS, BISHOPS, AND MAYBE EVEN THE
POPE! IT'S A REAL EYE OPENER. THIS COULD BE THE INSTIGATION OF A
SERIOUS PEACEFUL REVOLUTIN IN AMERICA, IF NOT THE WORLD. IF MS.
BROWN, OR AMAZON, COULD WORK OUT A MULTI-COPY DISCOUNT, I'D TAKE
ADVANTAGE OF IT.

AS USUAL, PARDON THE TYPOS. BETWEEN "HUNT AND PECK" AND THE
MINOR STROKES A COUPLE YEARS AGO, I FREQUENTLY HIT THE WRONG
KEYS AND HAVE DIFFICULTY PROOF READING MY COPY.
BEST REGARDS

*****
From a Fellow Subscriber:
In any case, he was one of the crewmembers of the Maersk that got hijacked off the
coast of Somalia. To make a long story short, much of what got told in the media was
lies (surprise, surprise!) -- including the fact that the captain was made out to be such
a great guy when all the crew hated his guts. Some other tidbits here. About half an
hour before the pirates made it on board, _____ was on deck and saw something he
thought looked suspicious. The captain was near him on deck chatting with someone.
_______ went over to the captain and said he thought it might be pirates out there and
they should take some kind of action right away. The captain then proceeded to
ridicule ________ and told him to get lost, not bother him. This really bizarre given the

21
fact that the captain had before the hijacking been driving the crew crazy by drilling
them every half hour for possible hijacks, etc. So how do you put together all the drills
with telling ______ to get lost? ______ played major role in saving captain's life, etc.
Because he has dark skin and is Muslim, he managed to engage the leader of the
pirates and got the guy to put down his gun and go along with him (I forgot for what
alleged reason). The guy finally listened and then _____ and other crewmember
stabbed the guy (they carried knives) not to kill but to disable him, which they did. The
point was to exchange the guy for captain -- so _______ took his life in his hands to
accomplish this, though it then got bungled. In any case, captain returned to Vermont,
and has still to communicate with or thank any member of crew, including _______.
Meanwhile, Captain gets $5 million movie deal (Hollywood), but no effort to include
any of crew in any way, shape or form. Then when _______ and _______ bombarded
everyday by media and spoke with many, all of what they told them got distorted and
twisted in articles, etc., so little connection between what got told in media and what
they told the media. Elizabeth says she always knew this, especially from listening to
me, but now she said she actually lived it (including horrible Discovery Channel). She
did mention however, that the only media outlet that had any integrity whatsoever was
People's Magazine. This was the only place where news writer checked her sources
and got it right. Am not surprised in a way. _______ also was down on his knees
driving the boat with bullets flying around him and played a major role getting it to
safety (after captain disappeared) and he got no bonus, just a trip back to Washington,
D.C. for fake, disgusting photo ops, driven with limousine to NYC for media purposes,
put up in fancy hotels, but then NOTHING, except for that he could take time off until
end of May (which ends this weekend!) with pay. Big deal.
More later, hope all is well.
*****

From a Fellow Subscriber:

Bob,
Here is another article where Panasonic has told their people to be back in Japan by
September 2009.

http://www.taipeitimes.com/News/worldbiz/archives/2009/02/11/2003435821.

Also, here is a blog dedicated to various news articles regarding this strange activity by
Panasonic.

http://www.scottmcpherson.net/journal/2009/2/11/the-bird-flu-question-of-the-year-so-
far.html

This dates coincides with your info and time frame in the IF. Maybe the gov. is
expecting that our people in our Embassies will not be able to return home for a long
while. A pandemic would provide the cover for a currency collapse and would prevent
any action by the people because everyone will be isolated and afraid for their survival.
I know it is speculation but it is very interesting!
*****
From a Fellow Subscriber:

http://www.nytimes.com/2009/05/29/us/politics/29cyber.html?_r=1&th&emc=th

22
And we all know how successful most the "wars" our govt declares have been. Of
course, they have all been amazingly successful at accomplishing the REAL hidden
agendas like:

- using our own tax dollars to fund a growing police state with the Nixon-coined "War
on Drugs" (with paid-off factions within the military often shipping in the product with
the help of the CIA)
- encouraging dependency on the govt tit thru flagrant welfare programs under LBJ's
"War on Poverty" which greatly expanded on the socialist sellout FDR and his New
Deal programs. (I noticed Donald "Dr. Death" Rumsfeld just happened to be a director
of the Office of Economic Opportunity, the primary agency for administering the "War
on Poverty" programs.)
- stealing what shred of rights we have left with the "War on Terror" and the damned
anti-PATRIOT Act and all it's follow-ons. Not to mention, our misled military (and
Blackwater contractors) and the new military tribunal system are responsible for
maiming, killing and torturing an unthinkable number of Iraqi's, hanging Saddam
Hussein and dismantling the Constitution, but not a single sign of Osama Bin Laden or
WMDs in Iraq. Those poppy plants in Afghanistan sure our growing like weeds now
though.

WITH THIS MUCH SUCCESS AT "WAR", OUR GOVERNMENT PLANNERS MUST

BE LICKING THEIR CHOPS AT STRIPPING OUT AND CENSORING EVERY
TRUTH REPORTING WEBSITE IN THE COUNTRY WHILE LETTING ALL THE
PORN, PROPAGANDA, SPORTS AND CYBER TRASH THROUGH. WE SHOULD
TAKE ADDITIONAL COMFORT IN THE NAME OF THE HEAD OF THIS
WONDERFUL NEW WHITE HOUSE / PENTAGON EFFORT: CYBERCZAR.
Czar: –noun
1.
an emperor or king.
2.
(often initial capital letter) the former emperor of Russia.
3.
an autocratic ruler or leader.
4.
any person exercising great authority or power in a particular field: a czar of industry.
--
"The truth of the matter is, as you and I know, that a financial element in the large
centers has owned the government ever since the days of Andrew Jackson." --
President Franklin D. Roosevelt, 1933
(Soldiers are) dumb, stupid animals to be used as pawns for foreign policy. - Henry
Kissinger (as quoted in Woodward and Bernstein's "The Final Days", ch. 14)
*****

From a Fellow Subscriber:

Hi Bob—Rumor has it that there is a deal where the Russians will “sell-build”—4
nuclear reactors in Jordan—rumor has it that Russia will sell mig-31 fighter jets to
Syria—which is better than anything Israel has right now—but the mig deal was put on
hold when Israel very recently sold some of it’s UAV drones to Russia---rumor has it
that Russia will reverse engineer these drones and start passing them out to Israelis
worst Arab enemies—Israelis f-15 and f-16’s are now pushing 25 yrs old—rumor has it

23
that Israel has a deal with the USA for —75 f-35’s— to replace their old birds—the
deal is for $20 billion—but the deal has been put on hold —because Israel wanted all
of the secret avionics technology “TRANSFERED” prior to the planes being built and
delivered—and the elite avionics technology transfer to Israel has been “refused”—it
is further rumored that BARKY is “telling” Israel that even if Israel does get the fleets of
F-35”S—and they need to be “FIXED” —then the planes cannot be repaired in Israel—
but must “ALL” be sent back to the USA for “all” repairs—rumor has it that there was
an Israeli spy cell of 5 agents very recently “busted” in Lebanon—and that they were
“ousted” to Hezbollah and the Lebanese by elements in US intelligence—rumor has it
that 6 new judges have been named to the Israel supreme court— 5 of whom are
woman judges—and all of whom have fanatical left wing feminist background’s—so
the waters are getting very muddy all around—somehow CHICKEN NOODLE NEWS
FORGOT TO TELL ANY OF US ANY OF THE ABOVE.
PS rumor has it that Rattner—”THE RAT”—who is Barkys auto czar—is totally the
invention of Wall St illuminist king pin Felix Rohatyn of the CFR—who was born in
Vienna, Austria.

PS —rumor has it that when NK did it’s first “FAUX” satellite launch missile test—the
missile went “2500 MILES DOWN RANGE”—before it was shot down by a US laser
cannon mounted on a 747 jumbo jet—rumor has it that the NK’S very recently tested
some 20 megaton warheads that successfully went “BANG”—rumor has it that it was
criminal Hillary Clinton Rosenberg and some of her lesbian mafia cronies that were the
ones who supplied NK with the uranium and the centrifuges—that has made NK’S
nuclear program such a big success—rumor has it that this was done during Bill
Clintons presidency—rumor has it that some or all of the above is starting to leak out---
to which Hillary Rosenberg JD is “claiming” she is “un-indictable”—because “according
to her”—she “has been a life long employee of the CIA”—because of some or all of the
above even though she is “allegedly” the secretary of state—she will not go anywhere
near NK because it might be a one way trip—rumor has it that Barky believes that the
US military should start interdicting NK ships on the high seas—rumor has it that if that
happens NK is saying “we will start shooting”—rumor has it that what NK really wants
from all or some of the above is bi-lateral talks with the USA—that will end in a non
aggression pact with the USA—since it is believed NK was intimidated by US war
games and naval maneuvers off the coast of NK.
*****

From an Interested Reader:

Dear Congresswoman Bachmann
First of all, I’d like to thank you for having the courage to stand up for what is right and
proper, and co-sponsor the audit the fed &bill introduced by your Republican colleague
Dr. Ron Paul of Texas. I believe the existence of our nation hinges on this bill being
passed and the audit put into effect as soon as possible. I expect the fed to resist this
at all costs, because the deceitful and filthy nature of the institution, be it made
transparent to the populace at large, will enkindle a sense of outrage that has not been
seen since the battle to birth our nation. That our nation has been taken hostage by
this despicable group of international money changers, is one of the most tragic events
to have ever occurred. I am a 55 year old, self-employed technician trying to grow a
small business. I’ve watched as orders for durable goods have dwindled, with the
domino effect of my clients laying off employees, their suppliers laying off staff, plant
closings, and on and on. Our economy is dying. Because of sinister insider tax
loopholes our good paying industrial jobs were sent overseas. Our free market

24
economy; potentates had (and still have) no responsibility to our own nation and its
people. These jobs aren’t coming back. And since they are not coming back our
country is doomed with a capital D. A country without a healthy industrial foundation
cannot survive. This past year marks the first time in my life that I was not able to pay
my federal income taxes. I’m in a situation that if I make enough money to house and
feed myself in the most basic fashion, it actually works against me and sends me into
the hell of debt slavery. Slavery to a private bankster organization and its collection
arm, which is equivalent to a group of Mafia street thugs. So in effect, if I work, I am
actually putting a noose around my own neck, and my government is actively seeking
to eliminate me, or I should say murder me. That is just the fact of life for the poor and
soon to be extinct middle class. I ask you, what kind of country is that ? How did we
succumb to an accursed debt-based currency that is created out of thin air by a group
of robbers (with the blessing of the government ?) Why does this organization exist?
How have they done anything except rob and enslave the people of a once mighty
nation? You tell me. I’d like to know. You must not let a currency that has NO
INTRINSIC VALUE continue. Usury vampires cannot be allowed to take the citizens of
this country on a ride to hell, simply because they have the power to do so. This
country is supposed to be a loose confederation of sovereign self -governing states,
not a bloated evil empire like ancient Rome. You must continue to stand up against the
guardians of the secret money factory. The last two times that we had true presidents
that tried to initiate a real unit of monetary exchange and end the private stranglehold
of the global usury money changers, they both left this life via very similar unfortunate
circumstances. I am speaking of Abraham Lincoln and John F. Kennedy. The banking
cartel is ruthless, and it is entirely possible that the moneychangers had them both
eliminated. When you go up against the federal reserve (as federal as Federal
Express), you too may be in danger. That is why I pray for you and your co-sponsors
daily. Other than a general uprising by starving, unemployed, and abused Americans,
you and your colleagues are our last chance. History is watching you, ready to record
deeds of courage, or deeds of despicable cowardice. The federal reserve and the IRS
are both agents of death and misery. We have been destroyed by deceit and stealth
from within. No foreign enemy, real or imagined, could have wreaked such treachery
and destruction upon this nation. Sincerely, Tad Ronane, Anoka, MN CC:
Congressman Ron Paul, TX Congressman Dennis Kucinich, OH
*****

From a Fellow Subscriber:

I'm on a contract job for a month here in Oahu. Occupancy rates at Oahu hotels are
70.6% down from 71.9% last year at this time. Kauai is 56.9%, Maui 59% and the Big
Island 54.9% making for a statewide average of 64.1% down from 69.2%. Room rates
have fallen on average 9.3% and folks can pick up some very reasonable package
deals now. Hotel revenues continue to fall, on average 16.1% statewide. A couple of
the smaller hotel outfits have gone belly up within the last two-months. Three months
in a row of record revenue loss and no light at the end of the tunnel.
Governor Lingle is going to give a speech today outlining a plan to furlough all state
employees three days a month to save money (meanwhile the legislature has voted
itself a pay increase for themselves and the executive appointees). That's a 14%
reduction in yearly pay. The unions are going to agree, the alternative is massive
layoffs. And a couple of years ago the talk here was mainland problems don't affect
Hawaii; ha!!!
*****
Capella Updates on Lajitas Gold-Copper Project

25
http://finance.yahoo.com/news/Capella-Updates-on-Lajitas-iw-15410997.html
*****

GOLD, SILVER, PLATINUM AND PALLADIUM

Monday morning showed all pluses. Secretary of the Treasury Geithner came
back from China telling us all was well, in a well-orchestrated propaganda campaign.
The usual retinue of Wall Street elites were trooped across CNBC starting up at 4 a.m.
By then the PPT already had the Dow up 125 to 8,613; S&P up 146; Nasdaq up 125
and the FTSE up 155 Dow points. The CAC rose 79; the DAX rose 157 and the Nikkei
was up 155. The 2-year was 0.93% and the 10’s 3.53%, 1-month Libor was 0.32% and
the 3-month 0.66%.
The dollar was under continued fierce pressure. The yen rose .0069 to $.9464;
the euro rose .0082 to $1.4284 and the pound jumped .0191 to $1.6377. Europe
already in depression will be howling about currency rates.
Oil rose $1.71 to $68.02; gas rose $0.03 to $1.93 and natural gas rose to
$4.00, up $0.18. Copper rose $0.08 to $2.27 – a breakout.
Gold was up $8.90 to $989.20 and silver rose $0.35 to $15.96.
On Monday about 15 minutes before the Comex opening gold was up close to
$9.00. It was taken down to plus $4.00 near the Comex opening and one hour after
Comex trading began gold was trading near even. So what else is new, this is your
government in action. After two hours of infighting gold was off $3.20.
Spot gold ended the day off $0.30 at $979.20 and the June contract was off
$5.30. Spot silver was $15.72, up $0.09 and the outside month July was off $0.19.
Both forward months were hit late in the day. Gold open interest fell 3,138 contracts to
388,632, as silver OI rose 58 to 102,631. During the day silver traded as high as
$15.95. Rumor has it London doesn’t have Dubai’s gold and either has to borrow it,
make delivery from the Bank of England or buy it in the market. The XAU lost 2.41 to
157.75 and the HUI fell 10.17 to 387.89.
The yen fell .0122 to $.9656; the euro rose .08 to $1.4160 and the pound rose
.0235 to $1.6441 and the UDSDX dollar index rose .31 to 79.13.
Oil had been up $2.27 but finished off $0.83 at $67.85. Gas fell $0.01 to $1.92
and natural gas fell $0.06 to $4.18. The CRB rose 7.76 to 260.81. Copper rose $0.11
to $2.31.
The Dow rose 221 to 8,721; S&P rose 214 And Nasdaq 261 Dow points. The
2’s were 0.95%; the 10’s hit 3.72% but ended at 4.68%. The one-month Libor was
0.32% and the 2-month was 0.65%.
Mexican copper output fell 20,371 tons in March, down 27.6% yoy and silver
production fell 54.7% yoy.
ETF Securities said it saw inflows of 378,000 ounces into its London silver-
backed exchange-traded commodity fund, bringing assets to a record 19.9% million
ounces. Its holdings of 3 gold ETFs rose 48,000 ounces or 0.6%.
Early Tuesday the Dow rose to 8,697, up 10; S&P gained 16; Nasdaq rose 24
and the FTSE fell 32 Dow points. The Nikkei rose 27; the CAC rose 1 and the DAX
rose 7. The 2-year was 0.95% and the 10’s were 3.65%.
The yen rose .0037; the euro rose .0030 and the pound fell .0051. Oil was off
$0.64, gas fell $0.01 and natural gas fell $0.04. Gold was off $2.40 to $977.60; silver
fell $0.04 to $15.70 and copper fell $0.02.
GOLD, SILVER
Tuesday saw gold rise $4.00 to $983.20, as June traded $0.90 lower. Silver
rose $0.22 to $15.94, as July rose $0.23. Gold open interest fell 38 contracts to
388,594, as silver OI rose 868 to 103,499.

26
 The costs for insuring and security at GLD are preposterously low, which tells
us they are either taking outrageous risks or they do not have the gold they say they
have.
Gold and silver shares had another good day. AEM rose 1.94%, or $1.17 to
$61.61; GG rose 5.39%, or $1.99 to $38.90; SSRI rose 1.52%, or $0.37 to $24.67 and
MFN rose 1.42%, or $0.13 to $9.26. The XAU rose 3.43 to 161.18 and the HUI rose
10.21 to 398.10.
The currencies were strong vs. the dollar. The yen rose .0083 to $.9556; the
euro rose .0151 to $1.4318 and the pound rose .0142 to $1.4309. The USDX fell .70 to
68.36.
The GLD-ETF added 15.27 tons to gold inventory, which now totals 1,134.03
tons, a new record.
Oil rose $0.13 to $68.71; gas rose $0.01 to $1.94 and natural gas fell $0.11 to
$4.14. Copper fell $0.01 to $2.30 and the CRB index fell .57 to 260.24.
The Dow rose 19 to 8,741; S&P rose 17 and Nasdaq rose 50 Dow points. The
2’s were 0.95% and the 10’s were 3.64%.
Early on Tuesday markets were generally weaker. The Dow was off 42 to
8,672; S&P fell 56; Nasdaq fell 36 and the FTSE fell 156 Dow points. The Nikkei was
off 37; the CAC fell 46 And the DAX slipped 41. The yen fell .0040; the euro was down
.0038 and the pound was up .0002. The 2-year T-bill was 0.93%; the 10-year was
3.56%; the one-month Libor was 0.32% and the 3-month was 0.65%. Oil was off
$0.49; gas was off $0.03 and natural gas was unchanged. Gold was off $1.70 to
$982.70, silver was up $0.05 to $16.00 and copper was $2.29, off $0.01.
At 7:15 am the cartel launched their pre-Comex opening attack on gold and
silver, taking gold down $9.00 and silver down $0.17. This is a typical early morning
attack. Let’s see if the buyers are lying in wait.
*****

IMF gold sale: US Congress approval next week

http://www.commodityonline.com/news/IMF-gold-sale-US-Congress-approval-
next-week-18234-3-1.html
*****
Northwestern Mutual Makes First Gold Buy in 152 Years
By Andrew Frye

Northwestern Mutual Life Insurance Co., the third-largest U.S. life insurer by 2008
sales, has bought gold for the first time in 152 years to hedge against further asset
declines.

“Gold just seems to make sense; it’s a store of value,” Chief Executive Officer Edward
Zore said in an interview following his comments at a conference hosted by Standard
& Poor’s in Brooklyn. “In the Depression, gold did very, very well.”

Northwestern Mutual has accumulated about $400 million in gold, and Zore said the
price could double or even rise fivefold if the economy continues to weaken. Gold
gained 10 percent last month, the most since November. The commodity has more
than tripled since 2000, rising for eight straight years. Gold futures for August delivery
slipped 30cents to $980 at 11:47 a.m. in New York.

“The downside risk is limited, but the upside is large,” Zore said. “We have stocks in
our portfolio that lost 95 percent.” Gold “is not going down to $90.”

27
 *****
U.S. Gold, Going or Completely Gone?
http://www.financialsense.com/fsu/editorials/kirby/2009/0529.html
*****
Did U.S. Export Over 175 Million Ounces of Gold?
http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=6745
*****
Mint can't account for missing gold
http://www.ottawacitizen.com/Business/Mint+account+missing+gold/1656084/story.ht
ml
*****

Buried in a Truro yard, a 313-year-old find

Silver sixpence is older than the Cape town
http://www.boston.com/news/local/massachusetts/articles/2009/06/03/truro_resident_fi
nds_313_year_old_coin_in_his_yard/
*****

Showdown Time?

By: Theodore Butler

http://news.silverseek.com/TedButler/1243963795.php
*****

From a Fellow Subscriber

Hi Bob,
I’m Dutch living in France and bought my gold en silver some years ago in
Holland at the ABN AMRO Bank in a small village in Holland. Despite the
fact that I had to explain the procedure to the people that worked there,
how to obtain the PM’s, everything went fine. After I had transferred the
money on an account they ordered the bullion at their sister company
Hollandse Bank Unie (Dutch Bank Union) in Rotterdam. After a week I could
get the bullion at our local bank office. No big deal.

Like you, I’m advising people to buy bullion. So, a friend of mine went last
week to the ABN AMRO office in his hometown, etc. etc. But the people that
work there told them after some days – they had to sort things out - that
they stopped selling gold and silver. He had to go to the Hollandse Bank
Unie in Rotterdam in person, identify himself and sign all kind of legal
papers. After a few days he had to return to the bank in Rotterdam en
could get his bullion.

You see, in Holland as well, they try tighten the nod and to make things
more difficult for people to defend and protect their selves.
Keep up your work, you’re great!!
Krachtige groet --

You laugh at me because I’m different. I laugh at you because you’re all the same

28
Death is no cure for ignorance
Find the truth, for the truth shall set you free
I do not intend to tiptoe through life only to reach death safely

"Man will never be free until the last king is strangled with the entrails of the last
banker." Banker was originally "priest."
*****
From a Fellow Subscriber:
You will love this. FEMA has been calling my house every other day for 2 weeks
wanted to ask us to do a survey, which they assure us we were chosen at random for.
Anyway, my wife and I have purchased disaster kits online. They wanted to know if
we felt we were prepared for a disaster, if we owned guns and if so what kind and how
many? We told them their call was intrusive; we didn’t want to answer their questions
and not to call back. They have called twice since.

*****

From a Fellow Subscriber:

Bob, thanks much. I did an IRA analysis to answer some of my IRA questions based
on your note. It may be somewhat novice, I am no expert, but it is probably
directionally correct. I shared it with my friends - Feel free to plagiarize if you think it is
of use to others. I hate to see everyone losing their savings. The file is attached.

" Dear Friends, I sent you a link from Bob Chapman. It really made headed into
hyper-inflation and a possible monetary system collapse. Pulling money out of one's
IRA is so painful because of the income taxes and penalties. But if the system is going
to collapse anyway you are clearly better pulling it out and putting it into something that
is going to keep value in a hyper-inflationary period.

So the question is; Is it better to pull out the money and pay the taxes now and invest
the balance in gold. Or pull it out and invest it all in gold now and wait to pay taxes,
10% penalty, and additional under estimated tax penalties in 2010. I am not an
accountant, but I did call the IRS, got their pubs and clarification on the penalties. (go
to form 2210 and pub 590 at www.IRS.gov to download)

I then built four scenarios -

1) Gold goes up by 50% between now and April 15, 2010.
2) Gold is flat between now and April 15, 2010. (It has been basically flat because of
manipulation since
last year)
3) Gold goes down by 10% between now and April 15, 2010.
4) Gold goes down by 20% between now and April 15, 2010.

Chapman's prediction is that is that gold will rise. So for the 50% appreciation
scenario, I did three additional cases for timing of the withdrawal.

Case 1 - withdraw all funds now and invest outside my IRA in coins or bullion.
Case 2 - invest in electronic gold - symbol GLD and let it grow to 25% in my IRA then
pull it out and immediately invest outside of my IRA.
Case 3 - invest in GLD in the IRA and let it grow to 50% in my IRA then pull it out and
pay taxes and penalties.

29
The penalty for under estimating and paying taxes is between 5 to 6% per year
depending on the quarter. So it is a relatively small consideration.
Results are:
If gold goes up by 50% you are better off with Case 1- withdrawing and investing the
entire amount now. Pay taxes and penalties in 2010. (a 15% benefit)
If gold goes down or stays flat, you are better off paying the taxes now. The penalty is
NOT due until April 2010! You will have early withdrawal taxes out of the way so next
year you know you are good on these taxes, I.e., playing it safe.

You can increase the growth rate of gold in Case 1 for true hyperinflation. For
example, just put 2, 3, or 4 in the orange boxes if you think gold with go to $2,000,
$3000, or $4000. It looks like you are getting rich, but you are really just keeping pace
with inflation.
*****

A Letter to a Fellow Subscriber:

Thanks again for that money you sent me for extra food for my folks and me here in
Kingman, Arizona. Yesterday I had to head from Kingman to Flagstaff Arizona to get
some Dental work done. Imagine my surprise at reaching the main rest area (rest
area for east and west bound traffic) near Belmont Arizona (where there is a Navajo
national guard station), very close to Flagstaff. Both sides of the road contained nearly
100 Police cars (Split about 50 on each side east and west bound) and what appeared
to be a swat team on the east bound (toward flagstaff) side. They also had up signs
that said all Commercial Vehicles are to stop. That's going both into Flagstaff and
away from Flagstaff (which makes no sense at all). They were basically pulling off all
trucks (and it appeared tour buses as well) and having them open the engines for
inspection and were using the big mirror carts to check the whole underneath portion
of all rigs and it appeared they were opening the containers as well. Any truck that did
not pull off was run down by a car and pulled over, nearly 15 trucks were pulled over
for about a 10 mile stretch heading into Flagstaff, presumably because they ignored
the signs and went past the check point.

Now I've been in the military long enough to know a bomb search when I see one,
there were no drug sniffing dogs that I could see anywhere. This was not a
drug/contraband search, it was a bomb search of some kind and it was one of the
most massive I've ever seen for Arizona.

Well to add to that, after I got my dental work completed, I went to wall mart in
Flagstaff to get some items for my Mom, and guess what I see? 7 US ARMY Airborne
troopers in the store. There is no Regular Army Base anywhere near Flagstaff Arizona
and the base at Belmont Arizona is a National Guard Navajo base only. I know the
Regular Army Airborne when I see them (was one myself nearly 40 years ago). This
adds up to nothing I can see that's any good for the folks in this country.

Just a heads up for you, as I know you are trying to keep track of this type of
information. I have a feeling that sometime before July 4th, we are going to be in
really big trouble!
*****
From a Fellow Subscriber:

30
Timmy’s China visit Dear Mr. Chapman, I was listening to the RBN audio from
yesterday and heard your comment about the Chinese students laughing at tiny Tim.
This morning I turned on squawk box (to get the gold and treasury numbers) their
guest made a similar comment about the students laughing at tt and all 3 hosts jumped
on him, Joe then said some bs like oh, he had just made a joke, that’s what they were
laughing at. Thought you might want to know that. Best wishes,
*****

CANADA
Canadian GDP falls 0.3% MoM in Mar; -5.4% YoY.

EUROPE
Spanish car registrations fell 39% on the year in May, slightly less than in
previous months, Spanish car manufacturers' association Anfac said Monday.
Car registrations are used as an indicator for car sales in Spain.
In a release, Anfac said 71,161 cars were registered in May, down from
116,112 a year earlier. The figure compared with a 46% annual decline in April.
Car sales to individuals and companies that aren't rental agencies fell 33%,
while car sales to rental agencies fell 57%.
Eurozone manufacturing PMI rises 3.9 pts to 40.7 in May.
German May Manufacturing PMI improves to 39.6 vs 35.4 in April.
Poland's annual inflation rate slowed to 3.8% in May, from 4.0% in April,
according to estimates released by the Finance Ministry Monday.
The May consumer price inflation estimate is slightly above the average
forecast of 3.7% in a Dow Jones survey of 10 bank economists.
Business confidence in Poland's industrial sector remained in negative territory
in May, below expectations, as new orders carried on falling and job shedding
continued.
A survey of 300 industrial companies prepared by Markit for ABN AMRO,
released Monday, showed that Polish manufacturing PMI rose marginally to 42.5 in
May, from 42.1 in April.
Unemployment in Poland, which has bucked the deep recession elsewhere, fell
for the second month in a row to 10.8% in May from 11% in April, Warsaw's labor
minister said Tuesday.
"This confirms our forecasts that unemployment should stabilize at around
10%-11% by the summer and should not rise sharply," Jolanta Fedak said.
Poland's joblessness, which had stood at 11.1% in March 2008, declined steadily
throughout 2008 to a low of 8.8% in October.
It subsequently began to climb - something that is common in the winter
months, when sectors such as construction and farming face a slowdown.
It reached 9.5% in December, 10.5% in January, 10.9% in February and 11.2% in
March.
A country of 38 million, Poland had 1.689 million unemployed at the end of
May, compared to 1.721 million at the end of April, ministry data showed.
French new car registrations rose 12.4% on the year in May, boosted by
government cash incentives and the introduction of a new license plate format,
reversing a 7% on-year decline in April.
According to data published Tuesday by the French Automobile Manufacturers
Association, new car registrations totaled 207,287 in May. When adjusted for working
days, May registrations were up 18.6%.

31
 Roughly 30% of the May new registrations were due to the French government
introducing a cash incentive for car owners to scrap their aging vehicles and replace
them with new ones, Francois Roudier, director of communications for the Association
told Dow Jones Newswires. The program was intended to stimulate production and
sales in the recession-depressed French automotive sector.
The unemployment rate in the 16 countries that use the euro rose more than
expected and to the highest level for 9-1/2 years in April as businesses struggled to
survive the recession by laying off more staff, official data showed Tuesday.
The euro-zone jobless rate rose to 9.2% in April from 8.9% in March, the
highest level since September 1999, the European Union's Eurostat statistics agency
said. Economists were expecting the jobless rate to rise to 9.1%, according to a Dow
Jones Newswires survey last week.
The data showed 3.1 million people have lost their jobs since April last year
when the unemployment rate was 7.3%. That sharp rise darkens the outlook for
consumer spending and suggests it may take longer for the region to recover from
recession.
Switzerland May SVME PMI improves to 39.8 vs 34.7.
Switzerland 1Q GDP down 0.8% QoQ, -2.4% yoy.
Austrian unemployment rose 30% on the year in May due to the impact of the
economic downturn, mainly on producing industries, but the number of jobless eased
from the previous month, the Austrian Labor Market Service, or AMS, said Tuesday.
At the end of May, the number of registered jobless living in Austria was
239,777, an increase of 54,967 on the year, but also a decrease of 18,463 compared
with April 2009.
In April, unemployment rose 26% against the year-earlier month, while the rise
in March was 29%.
AMS also said the number of open positions to be filled fell 35% in May, to
27,839.
The rising unemployment hit all demographic groups alike, but young people
and foreigners the hardest, and men more than women.
Unemployment among young people between the ages of 20 and 24 rose 42%
on the year, AMS said, while foreigners living in Austria saw unemployment rise 37%.
Among Austrian men, the number of jobless rose 42% on the year, while
female unemployment rose only 17%.
The country's swollen jobless rolls shrank slightly in May due to jobs created
through the government's EUR8-billion infrastructure plan, labor ministry data showed
Tuesday. In a statement, the ministry said jobless claims fell by 24,741, or 0.7%, to
3,620,139 in May from April. May jobless claims were up 54% on the year.
Claims had risen by nearly 40,000 in April and by over 100,000 in both
February and March.
French producer prices for April were again lower on the month, due to a fall in
food production and electrical equipment production prices, data released by the
national statistics office Insee showed Tuesday.
In April, French producer prices fell 0.6% on the month and were down 5.5%
from a year earlier; they fell 0.5% on the month in March and 4.7% compared with
March 2008, Insee said.
Insee has changed its statistics model and now provides producer price data
for the French market, for exports and overall.
For the French market alone, producer prices fell 0.9% in April from March and
dropped 6.4% from a year earlier.

32
 ArcelorMittal, the world’s largest steelmaker, is shutting down its operations in
Spain and sending 12,000 workers home for the rest of the year as demand slides.
Under an agreement between Luxembourg-based ArcelorMittal and labor
unions, the company may extend the layoffs until June next year if required, Giles
Read, a spokesman for ArcelorMittal, said today in an e-mailed statement. Employees
will get 90 percent of their gross salary, partly to be paid by the government.
“It’s a pretty drastic move,” Charlie Dove-Edwin, a London-based analyst at MF
Global Ltd., said today by phone. “It looks like it’s the result of too much inventory.”
Demand for steel has declined the most since World War II, the World Steel
Association said April 27 and output is set to tumble 15 percent this year. ArcelorMittal
has slashed production by as much as 50 percent and shed jobs as the global
economic downturn curbs orders from automakers and builders.
ArcelorMittal is mothballing its business in Spain as the nation suffers from a
construction slump that has propelled the jobless rate to 20 percent, the highest in
Europe. Spain’s economy contracted 1.9 percent in the first quarter from the previous
three months. Spanish crude steel production in April declined 38 percent from a year
earlier, according to the Brussels-based World Steel Association.

*****
Berlin breaks the unwritten rule
By Bertrand Benoit in Berlin and Ralph Atkins in Frankfurt
http://www.ft.com/cms/s/0/2da17b26-4f9c-11de-a692-
00144feabdc0.html?ftcamp=rss&nclick_check=1

*****
American capitalism gone with a whimper
http://english.pravda.ru/opinion/columnists/107459-0/
*****
From a Fellow Subscriber:
Hi Bob,
Just some things that are happening that make me worried about the future. I don't
expect you to reply, but just a description of things happening, which probably you
already know.

The Netherlands (maybe because of EU) does all kinds of things to try to track every
civilian in the whole of Netherlands.
They give a reason, like they always give a reason, so people say, "okay, that is a
good idea".
Even my mother said that it was a very safe feeling that they plant cameras on the
streets, to prevent criminality. And then I think why she would think that; she told me
once for example that in the Second World War, Jewish people would suddenly
disappear from the city. If I would remember something like that, I would not be so
happy about cameras or anything of the following points:
For example:
- new passport in June this year with RFID chip, fingerprints (for 6 years and older,
come on....) biometric data. (Reason: terrorists). So that means I will have to get a new
passport before that time, or not travel at all anymore.
- a lot of new camera's that follow the car traffic (reason: try to regulate the traffic, so
try to stop traffic jams and such). I suddenly saw them appear on the "Kennedylaan" in
Eindhoven, just a few weeks ago I saw them.

33
- Regional and Countrywide "electronic patient dossier". I immediately replied that I do
not want to be part in that. And I got confirmation that I will not be part in that (reason:
every doctor can see what you have, and can help you faster).
- Electronic payments are monitored, so they know where, when and what you bought.
So I pay a lot in cash.
- In the future when one wants to travel with bus, or train, you will have a chip card with
your name.
- smart electricity meter to connect you to the smart energy grid. It will transfer every
15 minutes wireless information about electricity use. It might even enable someone to
stop your wash machine from working during peak energy hours for example? I voted
against. I will not change from energy company, because I think one of the reasons
they want to give "better deals" and trying to let people switch from company is to
install that smart meter. They will put it in every new home.

- monitoring of mobile phones, so they record where someone is at any given time. So
I put it off normally.
- installation of cameras on several train stations will be done, reason: "terrorist plans"
can be stopped.
- "child dossier" in which they write down everything, from the parents situation,
occupation. The color of the eyes, the weight etc. And keep that record until someone
is in the thirties?

You know, somehow I want this system to collapse, and then maybe we can get rid of
this idiotic control system. It is making me angry. Only on Internet forums I see people
talking about this.
For the rest, I do not hear people on the streets talking about this.
Cheers,
*****

That passport is a EU idea. However the storage of the fingerprints in a national

database is a Dutch request, they wont do that in other countries (but maybe some
do? there is too much data) Fingerprints of children of 12 year and older, not 6 years.
This is what they wanted, but that was not allowed at the end.
For the citizens this will start 21 September 2009, for diplomats already in 28 June
2009. They expect a run on the old passport and identity card. Also because the new
versions are much more expensive. Of course this will help to stop "child trade".

Camera's like this in Noord Brabant (that is a province of the Netherlands).

http://www.brabant.nl/Verplaatsen/Feiten%20en%20cijfers/Verkeersinformatie%20Syst
eem.aspx
It will help to figure out how busy the roads are and how much time it will take for the
travelers to arrive at a certain place. Of course one could say, that is a good idea, it will
help the traffic flow.
Cheers,
*****

From a Fellow Subscriber:

Incidentally, do you know anything about the current political situation in Austria? It is
interesting. The FPO, which was previously connected with Haider, is quickly gaining
ground, and especially among the young. The SPO would be equal in some sense to

34
our Democrats; the OVP would be somewhat equivalent to our Republicans, although
the OVP has in some respects always been more to the "left" than our Democrats. In
any case, it is the same here as in the US -- very little distinction between SPO and
OVP and just a lot of empty promises and lies. But the FPO is ---- pro-closed borders,
anti-immigration and anti-EU. They get bad press everywhere and are lambasted as
"racist," but they are gaining more and more popularity because of the fact that the
immigrants are at the root of so many problems here (bringing down wages, crime,
draining public funds with minimal input, etc.). They picked up sizable votes in the last
election and their popularity continues to grow. If I could vote here,
I would vote for the FPO! The racist label and all the other garbage thrown at them has
and continues to be used to discredit them, -- same as in US, where they stick in a
black guy to have a really easy way of discrediting criticism, but it is not and will not
work here. Probably if the FPO gets enough power at some point there will be the
sanctions against Austria. While much of the world will be told and will think it is
"racism," it will really be about stepping out of line with the new world order agenda. I
had an idea. This week, I am having some stickers made up which have --
www.prisonplanet.com and www.infowars.com and I will be attaching these stickers to
political posters all around Vienna! (They'll be small enough that I won't attract any
attention.)
Enough for now be well.
*****

From a Fellow Subscriber:

*** The brave new world has already arrived in Ireland, where your co-editor is
currently based. Ireland exemplifies the boom-bust economics that has shattered the
global economy. When I left the country in 2006, the place was awash with excess –
property developers ferried themselves around in helicopters, private bars served €20
cocktails, the roads were full of top-of-the-range BMWs, Mercedes and Aston Martins.
Now the bubble has burst and the Irish are baying for blood.
Ireland’s fall from grace was nothing if not spectacular. According to The
Economist, the economy probably shrank by 2.5% in 2008 and may contract by
another 6.5% this year. Unemployment has jumped from 5% to 10.4%, faster than
America’s decline. Meanwhile, Irish banks are blighted by souring property loans. And
a crisis in public finances has forced the government to add an extra income tax levy
on all its citizens to plug a hole in the public finances.
Of course, all this is putting huge pressure on Irish sovereign debt. The yield on
Ireland’s ten-year government bonds, at about 6%, is way above that of Germany, at
about 3.2%. And the state has gone even further than the US in guaranteeing banks’
toxic debts worth two to three times annual GDP. According to Goldman Sachs, total
losses could reach $27 billion, or 10% of GDP.
*****

ENGLAND
UK house prices were steady in May, the first time in 20 months that they
haven't dropped, but the outlook for the property market remains fragile due to the
weakness of the economy, property services company Hometrack said Monday.
Although home prices were 9.6% lower on the year earlier in May, Hometrack
said homes were selling quicker and sellers were getting a higher proportion of their
asking price from buyers. Home prices in April declined 0.3% on the month and 10.1%
on the year.

35
 "While house prices remain unchanged over May, the outlook for the housing
market remains fragile with a number of factors that could well derail the recent pickup
in market activity," Richard Donnell, Hometrack's director of research, said in a
statement. "Given the weak outlook for the economy, house prices are expected to
remain under downward pressure for the foreseeable future."
The results of Hometrack's survey of 1,776 housing agents across the country
chime with other indicators that suggest the downturn in the UK’s housing market is
beginning to bottom out after sharp drops in prices and interest rates.
Last week, the Nationwide Building Society said its measure of house prices
showed they rose 1.2% in May, the biggest monthly increase since October 2007,
bolstering hopes that the market is stabilizing.
"However, with credit conditions still extremely tight, a return to sustained rises
in house prices still looks some way off - we expect more falls this year," said Colin
Ellis, an economist at Daiwa Securities SMBC, in a note.
Hometrack said it took an average of 9.9 weeks to sell a house in May, down
from 10.4 weeks in April and the first time it has fallen below 10 weeks since May last
year. Sellers got 90.3% of their asking price from buyers in May, compared with 89.6%
in April.
The UK manufacturing sector shrank for the 14th consecutive month in May,
but the pace of the contraction moderated by more than expected, in another sign that
the worst is over for the sector, data showed Monday.
The purchasing managers' index for the manufacturing sector rose to 45.4 in
May from an upwardly revised 43.1 in April, Markit Economics and the Chartered
Institute of Purchasing and Supply said in a statement. That marks the highest reading
for 12 months and extends the index's recovery from February's record low of 34.9.
Although a reading below 50 indicates that the sector is contracting, it was
higher than the market consensus forecast of 44.2 from a Dow Jones Newswires
survey of economists last week. April's PMI was initially reported at 42.9 last month.
April M4 Money Supply: 0.2% MoM, 17.4% tot.
May PMI Construction up to 45.9.
Mortgage Approvals increase to 43K in Apr from 40K.
April M4 Money Supply: 0.2% MoM, 17.4% yoy.
The market fundamentals worldwide have no justification for today’s prices.
The FSA gave bonuses for the cretins who did not see the dreadful balance
sheets of the banks and the near meltdown of the British economy. What will be the
next madness?
In less than 7 months Abu Dhabi made a huge profit on Barclay’s shares.
Jacqui Smith, Home Secretary, who refused Michael Savage entry into the UK
based on his being hateful has quit. Savage is suing her. Four other MP’s quit as the
rats deserted the sinking ship.

LATIN AMERICA
Approval for the government of Brazilian President Luiz Inacio Lula da Silva
recovered in May as voters became more optimistic about the country's ability to pull
out of the current economic slump, according to a poll released by the Sensus opinion
research institute on Monday.
The poll showed approval for the government rose to 69.8% in May from 62.4%
in a previous poll held in March.

36
The pace of consumer inflation in Brazil's largest city, Sao Paulo, picked up slightly in
May, as food and housing prices accelerated in the period, the Fipe research
foundation said Tuesday.
Fipe, which is affiliated with the University of Sao Paulo, said its consumer
price index rose 0.33% in the period, compared with a rise of 0.31% in April.
The figure was in line with market forecasts for an increase of between 0.27%
and 0.35%.
Food prices picked up 0.07% in May, compared with a drop of 0.26% in April.
Housing costs accelerated 0.19% in the period, reversing a fall of 0.04% seen
in the previous month.
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 10.25%
from 11.25% in April.

MEXICO
*****
Money Sent Home by Mexican Workers in U.S. Falls Sharply
By ELISABETH MALKIN
http://www.nytimes.com/2009/06/02/world/americas/02mexico.html?_r=2&adxnnl=1&r
ef=world&adxnnlx=1243944004-lC2r1LMZp5SQ7QWTnceieQ

JAPAN
Japan's domestic sales of new cars, trucks and buses fell 19.4% on year in
May, dropping for the 10th straight month, an industry body said Monday.

AUSTRALIA
The value of inventories, or stocks, held by Australian companies fell 1.2% to a
seasonally adjusted A$119.34 billion in the first quarter of 2009 from the previous
quarter, the Australian Bureau of Statistics said Monday.
Economists on average had expected inventories to fall 1.4% from the previous
quarter.
The bureau said its trend estimate for inventories, which further smoothes the
seasonally adjusted data, fell 0.9% to A$119.85 billion from the fourth quarter and fell
0.6% from the year-earlier quarter.
Australian company gross operating profits fell 7.2% to a seasonally adjusted
A$53.41 billion in the first quarter of 2009 from the previous quarter, the Australian
Bureau of Statistics said Monday.
Company profits also rose 6.8% from the year-earlier quarter.
Economists surveyed ahead of the announcement on average predicted
company profits fell about 5.0% in the first quarter from the previous quarter. Profits fell
8.0% in the fourth quarter from the third.
Company profits before income tax fell 2.3% in the first quarter, after falling
20.4% in the quarter before.
The bureau's trend estimate of company gross operating profits fell 5.0% in the
first quarter from the fourth and rose 9.1% from the year-earlier quarter. The trend data
further smooth the seasonally adjusted numbers.
Australian retail sales rose a lower-than-expected 0.3% to a seasonally
adjusted A$19.35 billion in April from A$19.30 billion in March and rose from A$18.13
billion a year earlier, the Australian Bureau of Statistics said Monday.

37
 Economists surveyed ahead of the announcement on average had expected a
0.5% rise in sales for April.
Sales had risen 2.2% in March on month.
Australia's manufacturing sector rose to a seven-month high in May, although
general conditions remain consistent with an ongoing contraction in the economy.
The Australian Industry Group-PricewaterhouseCoopers, Australian
Performance of Manufacturing Index rose 7.4 points in May from April to 37.5.
Australia 1Q Curr Acct Deficit A$5.08B published around 0130 GMT provided
the wrong current account deficit figures. The correct version, with a clarification of the
measure used for balance on goods and services, is as follows:
Australia's current account deficit widened to a seasonally adjusted A$4.61
billion in the first quarter of 2009, the Australia Bureau of Statistics said Tuesday.
Economists had expected a current account deficit of A$5.43 billion in the
quarter. The fourth quarter 2008 deficit was revised to A$4.18 billion from the A$4.09
billion initially reported.
The balance on goods and services, in seasonally adjusted chain volume
terms, fell A$5.96 billion over the quarter, which is expected to add 2.2 percentage
points to the income-based estimate of gross domestic product.
GDP will be reported Wednesday. Economists predict the economy fell 0.2% in
the first quarter from the fourth, compared with a fall of 0.5% in the fourth quarter.
Australia's net foreign debt also fell 3.0% in the first quarter from the fourth
quarter to A$674.18 billion, the ABS said.
The total number of Australian houses and apartments approved for
construction rose a seasonally adjusted 5.1% in April from March.

HEALTH
OUR SKIN TOPIC CONTINUES
Nearly one million Americans receive the dreaded diagnosis that they have skin
cancer. What causes the skin to become ill? According to The Skin Cancer
Foundation the leading cause of skin cancer (such as melanoma) is too much sun
exposure. Excessive sun exposure usually involves unprotected exposure. Also a new
study reports that teenagers are not concerned and are spending a lot of time under
the sun.

SOME STATS
Our CDC provided statistics that suggests that only 10% of teenagers regularly use
protective sunscreen when exposed to the sun for more than one hour. This habit of
not using precautions of sunscreen or covering up puts us at risk of getting one of the
most devastating cancers, melanoma, which can lead to death. Melanoma cases are
on the rise and account for approximately 9,000 deaths annually. The more sun
exposure we get before we are 18-years-old, the more likely we are of having our
doctor tell us the bad news. Why is that? Why does sunburn in our youth create such
risk? Well, one reason is that we get nearly 80% of lifetime sun exposure as
teenagers. Most kids are outside between the hours of 10 a.m. and 4 p.m. By
experiencing one blistering sunburn during childhood could be enough to trigger
melanoma later in life. Apparently according to medical science it has to do with our
immune system, which for the average person gets weaker with age. Many experts are
now warning parents to keep their kids away from tanning beds as well as the mid-day
sun and use sunscreen. What we do as youngsters can promote a lifetime risk of skin
cancer.

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FYI
Skin experts claim that if one bad exposure can bring on risk of skin cancer later in life
they also state that if we have three or more episodes of burned skin before the age of
20, which require three or more days to heal, substantially increases the risk as much
as five fold. The FDA says that exposure to ultraviolet A & B (UVA) rays can have
cumulated damage of the skin, irregular skin pigmentation and the eyes causing
cataracts. The University of Texas Anderson Cancer Center says that children today
have five fold greater risk of getting melanoma than their parents did.

MIRROR, MIRROR
We all know what too much sun can do to the look of unprotected skin as we age. The
lack of resiliency is the result when skin is exposed to various conditions including
radiation causing the epidermal layer to become thick and tough. The breakdown of
the elastin and collagen network of the skin is accelerated and science explains the
damage as a process called “cross-linking.” What is it? It is the protein collagen (also
known as the connective tissue which supports the skin) is cross-linked (damaged) by
agents that are stimulated by sunlight, alcohol, and tobacco smoke. When we are
exposed to these conditions a high incidence of wrinkles result. A warning signs is
developing skin lesions.

CROSS-LINKING TEST
There is an insanely simple test to estimate the amount of cross-linking damage to
your skin. Pinch your skin with your thumb and forefinger on the back of your hand,
pulling it up and holding it for five seconds and then suddenly release it. The faster
your skin snaps back into place, the less cross-linking damage you have. So, by
reducing the amount of cross-linking damage you can reduce your risk of skin disease.

BODY PROTECTING TIPS

Your lips are sensitive and have only a thin layer of skin (thinner than other parts of
your body). The lips have less melanin (pigment that protects against sun damage)
and sun can negatively impact the collagen (protein) in your lips and make them burn.
By-the-way, you need your collagen to help prevent wrinkles around your lips. People
will often lick their lips thinking this helps protect them when they get too hot and dry.
The saliva actually forms a lens and intensifies the sun’s rays. Use a natural lip
protective balm when outside and if you have allergies avoid products with PABA. If
you suffer from cold sores you should be especially careful because sun exposure can
trigger cold sore breakouts. If you’ve been in the sun and wearing sunscreen you will
want to rinse off the sunscreen when coming indoors and immediately moisturize when
the skin is still wet because the drier the skin the more greasy the moisturizer needs to
be. When washing off the sunscreen use lukewarm water and do not scrub or use a
brush. Use oatmeal and honey soap to help lock in moisture. When shaving legs,
underarms or face be very careful to use a cream with aloe to avoid skin irritation.
Select wrap-around sunglasses to block 99% of the sun’s rays. Hats should have a 3
to 4 inch brim to effectively block the sun. Artificial tan products do not offer protection
from the sun unless it contains sunscreen.

YOUR OPTIONS
Be selective with all products you put on your skin. You can clean and moisturize your
skin with organic products and reduce skin inflammation. Look for Oatmeal & Honey
Soap and Natural Deodorants at Apothecary Herbs. Oatmeal helps to lock in the

39
natural moisture without disturbing the natural flora preserving your immunity. Avoid
the aluminum and chemicals in deodorants with the Crystalux Natural Deodorants.
Help balance and strengthen your immune system response to help reduce wrinkles
with Immune Booster formula and reduce inflammation and pain with Pain or Extra
Strength Pain formulas at Apothecary Herbs. To reduce stress try Valerian Root,
Relaxation formula or Emotional Stress formula and reduce outbreaks. These and
much more are all at Apothecary Herbs http://www.thepowerherbs.com or toll free 866-
229-3663, International 704-875-8010.

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off your total order before shipping when you print off your shopping cart order online
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SAVE 15% on this package with the STIMULUS DISCOUNT. Call Apothecary Herbs
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salterns (a 2000-year tradition) along the coast of Algarve, Portugal. Salt crystals are
harvested by hand and sun-dried. This is a true artisan sea salt providing richness as
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Sea Salt® just $8.50.

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Congestion Formulas plus toxic-free flea and tick collars, shampoo and spray at
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SURVIVAL ITEMS – STAND-UP FOOD POUCHES (NOW SAVE 15% CALL NOW)
Order your convenient and compact, dehydrated food in the stand-up pouch for food
emergencies or recreational camping. Light weight food pouches have a long shelf life,
are easy to store for your rainy day food shortages and don’t cost a lot to ship. We
have several meals to choose from in single and double serving sizes to avoid waste.
Mix and serve in the stand-up pouch and avoid the need for extra utensils and
cleanup. Order single serving or double serving meals by the case and for a hot meal,
don’t forget the reusable Flameless Oven for just $13.00. Call Apothecary Herbs 866-
229-3663, International 704-875-8010 or order online http://www.thepowerherbs.com.

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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
7.415 and Saturday 7:00 am on GCN www.gcnlive.com. Free radio show archives at
http://www.thepowerherbs.com

#10 CANS SURVIVAL FOOD – call Freeze Dry Guy 866-404-3663 or

www.freezedryguy.com.

*****
SCHEDULED ISSUES
Every Wednesday and Saturday June 2009

A CALL FOR A GLOBAL MOBILIZATION

AGAINST THE G20 SUMMIT IN PITTSBURGH, PA., U.S.
SEPTEMBER 24 AND 25, 2009
ANOTHER WORLD IS POSSIBLE – BUT WE MUST FIGHT FOR IT!
BAIL OUT THE PEOPLE
JOBS & SOCIAL NEEDS--NOT WAR AND GREED
The third G20 summit is going to be in Pittsburgh, Pa., on September 24 and 25, 2009.
The challenge before the movements for economic and social justice, as well as the
antiwar movement, is that the next meeting of the powers that govern the world
economy be met with a powerful mass mobilization demanding that jobs and social
needs, and not war and greed, prevail--here in the U.S., and across the world.

The G20 summits are taking place in response to the greatest worldwide economic
crisis since the 1930s. However, the purpose of these high-level meetings of
governments and bankers is not to rescue the people of the world from depression-
level unemployment, evictions, homelessness, poverty, social and economic
inequality, and war. These summits are about fixing the economic and financial order
that puts profits before people--and fixing that system by creating more poverty, misery
and suffering.

The last G20 summit, held in London in early April, was met with massive protests
both in London and throughout Europe. Now that the G20 is coming to the U.S., it is up
to activists and organizations in the U.S. to take up the challenge of uniting and
working together to organize a mobilization to Pittsburgh during the summit.

Many had expected New York City to be the location of next G20. Yet once it was
confirmed that Pittsburgh would be the summit location, organizers immediately began
preliminary logistical planning for a mass mobilization there in September.

Organizing for the G20 summit in Pittsburgh was the central theme of a People’s
Economic Summit meeting in New York City on May 31. Consistent with the theme of
that summit, “A New World is Urgently Needed–But we must Fight for it,” the more
than 200 activists and 35 organizations in attendance agreed to work tirelessly over
the summer to expand the network of grassroots activists and organizations to bring
thousands of protestors to Pittsburgh.

Activists at the People's Economic Summit also agreed that the response to the next

41
G20 should not be confined to the U.S., and that there should be a global response to
the summit. Accordingly, activists and organizations across the world will be urged to
endorse this call for protest against the G20 summit meeting in Pittsburgh, and to
organize globally coordinated protests during the summit in September.

The potential for massive global mobilization in September is truly infinite. Together,
let’s begin the work required to realize that powerful potential.

Another world is possible, but we must fight for it.

The Bail Out The People Movement

What you can do:

1) Endorse: http://www.bailoutpeople.org/septg20endorse.shtml

2) Spread the word - forward this message to friends, fellow activists, community
organizers, trade unionists, and student organizations. Ask them to endorse and
participate.

3) Donate to help with organizing expenses: http://bailoutpeople.org/donate.shtml

4) Volunteer: http://www.bailoutpeople.org/septg20volorgcents.shtml

5) Become a local organizer or organizing center:

http://www.bailoutpeople.org/septg20volorgcents.shtml

Anyone can subscribe.

Send an email request to
Action.News.1-subscribe@organizerweb.com

Subscribing and unsubscribing can also be done on the Web at

http://www.organizerweb.com/mailman/listinfo/action.news.1
*****
SCHEDULED ISSUES
Every Wednesday and Saturday June 2009

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