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US MARKETS Every professional has their own method of analyzing markets, finance and economies, and some do well coming up with the direction of social and political issues as well. The other 97% miss one-half to two-thirds of the time. That is not very good and one asks why? The answer is simple they really havent studied history as well as they should have. Some believe that the crisis in Europe is the heart of todays problems. It certainly is a strong integral part, but not the primary causation. The 3-year old finance bubble was created by the Federal Reserve, which began the situation starting in 1993. We saw the dotcom boom, which they could have stopped in its tracks. All they had to do is raise margin requirements from 50% to 60% temporarily. After that collapse in midMarch 2000, they decided rather than purge the systems, as they as well should have done in 1990-92, they created another bubble in real estate. They have been trying to recover from that bubble and other layover problems since wed say 2000. Yes you can blame Europe for its part, but the blame lies with the Bank of England, the European Central Bank, and the banks and personages, who control those entities. Those in England, Europe and in the US, who control business, finance and

economics from behind the scenes, have played the parts they have in order to bring about world government. If you can perceive and accept that from an historical perspective, they you can understand what is really going on. European banks are struggling with their fundings and credit is drying up. This is what happened in 2008. As a result Europe is a disaster waiting to happen. Europe is finally realizing this is all about debt. The socialists want it go away, just disappear but it does not happen that way. Debt and credit default swaps will in the end rule the day. Few reflect back to 12 years ago when the Maastricht Treaty was being approved. The cornerstone was public debt that was not supposed to be more than 3% of GP. That did not last long. Then Italy and Greece, with the help of Goldman Sachs and JPMorgan helped these two basket cases qualify for the euro and euro zone by Mickey Mousing their balance sheets. We saw one interest rate fits all and we knew the euro was doomed before it got started. The condition of the euro zone and Europe is certainly terrible, but so are US debt problems. Policy decisions are bad, but not any worse than they are in the US. We see pundits trying to separate sovereign debt from bank debt. They are one in the same, because the banks control the governments, and tell them what to do. Europe particularly France, was very upset last week when SoGen was rumored to be insolvent. The answer from those accused was rubbish. SoGen has a history of one of the most criminal banks in the world, so what is new. Just more criminality. SopGen and France are under pressure because they own loads of PIIG debt and are being asked to supply more funds to bail out their neighbors, a role they cannot fulfill without going under themselves. The situation France is in is three times worse what it was in 2008. Everyone expects France and Germany to bail out the bankrupts and that cannot happen. Neither the banks nor the governments can continue to do what they have been doing and at the same time control their financial systems and economies. Now you can understand why CDS credit default swaps trade above 180, when they traded at 80 in 2008. We feel that if the six countries in trouble are not allowed to default it will take the other nations under as well. There is much at stake here. Not only the insolvency but also the breakup of the euro zone and the euro and the dream of using them as a template for a new world order. In addition it is very significant CDS for Brazil jumped from 35 to 152 as did Mexico, which is an indirect result of what is going on in Europe, UK and the mortgage bond market and by cutting back 30% on loans to small and medium sized businesses. Although they are very leveraged in their other operations, such trading and global leveraged speculation include great counterparty risk. This time exposure is somewhat different but the exposure in the theatre could be just as bad risk wise as it was in 2008. Generally speaking they are not long gold and silver bullion and shares, they are for the most part short. The venue that could be very dangerous is derivatives. The way these major banks and countries have become interconnected the danger always persists and once a fallout begins it could bring down all major banks and countries. Dont let that fact escape you. They dodged the bullet in 2008, but they might not the next time. The carry trade is as large as it has ever been and the cost of borrowing is close to zero, again, encouraging taking on too much risk. This past two weeks currency markets have seen large swings, especially in second and third tier countries. No one knows the size of carry trades affecting these countries. We have seen a number of countries quickly give up almost all of their dollar gains of the past several months and the Swiss and Japanese have spent billions of dollars trying to push down the value of their currencies, but to no avail. The euro and the dollar have stayed about the same, but we see the euro weaker due to ongoing financial problems, which contrary to conventional wisdom have not been solved.

Throughout Europe not only has money been lent at very low rates, but also much of it is uncollectible. This broken European bubble will deflate for some time to some. It will affect all other sovereign debt negatively as well. These are the borrowers of part of that $16.1 trillion that was lent by the Fed over the last few years, which has never been paid back. European banks are buried in debt and the politicians, whom they own, will do their best to protect them. Unfortunately, there is no painless solution. The contagion is underway and the latest meeting to solve these problems was a failure. The latest European version of the issuance of quantitative easing to buy Italian and Spanish bonds will prove to be futile, just another attempt with taxpayer funds to bail out the banks. This possible Black hole of Calcutta at this point puts Europe in a worse position compared to the US, which is no piece of cake, and probably wont far any better in the future. The working out of US problems will just take longer. As each day passes and in spite of the disinformation, confidence in Europe and the US falters and rightly so. The US has no periphery to support essentially Europe does and that is in favor of the US, but ultimately US problems are far more overwhelming. The recent commitment of the Fed for zero interest rates for the next two years showed great weakness and will in time come back to haunt them. This was another reward for Wall Street speculators and another moldy bone thrown to the nations savers and elderly. There is no question Wall Street and banking, which own the Fed are desperate, to make such a commitment. The decision for QE 3 was made 15-months ago when we predicted it. We could see it coming and we know the decisions of the last 11 years and the pressure being exerted on the Fed will ultimately bring about its demise, and its days of looting the American public will be over. What the Fed and the ECB have done in greed and for their dream of world government is over. We are closing in on payback time, as desperate measures become more noticeable and a solution remains out of their reach. They will pay for what they have done to us. Even though we expect at least a few more years of unrestrained leveraged speculation, it will then come to an end. It has become a crucial factor for monetary policy championed by both Sir Alan Greenspan and Ben Bernanke. Wall Street and baking love it, because their positions allow them to create inside information, which allows them to make money consistently with little or no risk. We also have the SEC and the CFTC perpetually looking the other way aiding and abetting their criminal behavior. If you add in that there are no limits to what they can do you essentially have an ongoing free for all. This is unrestrained finance via a policy of zero interest rates. This gives Wall Street and banking a license to steal. All this has caused a bubble and that bubble is in the process of bursting, a product of fiscal and monetary stimulus. That is not only in the US, UK and Europe, but worldwide As a result confidence in the global system is being lost. De-leveraging of bullish bets in markets of bonds and stocks is underway. Ironically these speculators are short gold and silver and the shares. Short covering is in process with some even switching to the long side in the gold and silver bullion and share markets. How any economist could believe that leveraged speculation reduces risk is beyond us. Fortunately the other shoe has dropped and such theory has been disproved. The result of all this is that we have an escalating debt crisis worldwide and now the experts in and out of government do not have any solutions as to how to rectify the situation. The sovereign debt crisis has been underway since the early 1970s. This experience shows you how long bad things can last. Before this is over trillions of dollars will be defaulted upon. The days of overwhelming stimulus to gain traction in the economy or economies is in the process of being ineffective. We like to call it the law of diminishing returns. The $2.3 to $2.5 trillion we project that the Fed will have to create in the coming fiscal year will at best produce GDP growth of zero. The minute the Fed and

Congress stop feeding the system we will be looking at negative growth of 5%. We are headed toward crunch time and there is no avoiding it. Uncertainty and instability are Americas and the worlds next challenge. Currencies are going to react widely. Gold and silver will fly along with the gold and silver shares as a result of debt and falling economies accompanied by inflation. The big problem will not only be de-leveraging, but also the opaque derivative markets and the Exchange Traded Funds, many of which are leveraged. Yes, it will be a very rough ride, so you had best get ready for it. We never had a recovery and the trappings of growth are quickly falling away. Extending the time line for all these problems is coming to an end, but it probably will not be abrupt. There will be all kinds of terrible events, but it looks like the elitists are going to play this out over an extended time frame before they attempt to pull the plug. That means these problems could be extended out five or even ten more years on a degenerating basis. That also means we will continue to have limited wars for financial gain and distraction. The strategy has been and will continue to be to keep creating money and credit and allow inflow to reduce the size of the debt. These comments regarding debt quoting Bernanke and throwing money from helicopters and Greenspans admission that the US cannot be downgraded, because it can always print money are flippant and very unprofessional. What they have both done rather than allow the US government to default is to perpetually create money and credit to paper over the economys failure. This process increases inflation that quietly steals the value of purchasing power like a thief in the night. Both men can be classified as thieves for having done to the American people and others by stealing the fruits of their labor. This trick used by money masters and politicians for centuries is little understood by the public and most cannot understand how it works and the ultimate ramifications. These characters and others create additional debt, which is followed by other nations central banks, which has created a race to the bottom and eventually all nations cannot pay their debts and default. Eventually in order to prevent a collapse in the financial system a meeting is held such as was held at the Smithsonian talks in the early 1970s, or the Plaza Accord in 1985 and the Louvre Accord in 1987. All currencies are revalued and devalued and there is multilateral debt settlement. We believe that is how all this will come about. Evidentially a deal has been made from behind the scenes to relieve the Fed of having to produce $850 billion in stimulus and that task has been delegated to Mr. Obama. The President, while calling for budget cuts, is calling for $850 billion for stimulus 3. Observing recent actions by Congress some idiotic excuse will be made up and like magic stimulus 3 will appear. We also suggest that the President will use the London rioting as a cause for such stimulus. Remember never let a crisis go to waste. It is sure to be sold in the behalf of preservation of order. We do not believe the powers behind government will get the desired results. Admittedly, Ben Bernanke inherited a can of worms from Sir Alan Greenspan. Ben has been able to accumulate $3 trillion worth of an assortment of Treasuries, Agencies and CDS, and MBSs, also known as toxic waste, over the past few years. Those moves decidedly have been negative for the rating of US government debt. The rating really should have been lowered five years ago during the Greenspan years and perhaps even sooner than that. Due to massive increases since 2006 by the Fed we now already are in a bubble. The 12 person congressional debt commission, we like to refer to as the Obama Enabling Act, patterned after Adolph Hitlers legislation of 1933, which allowed him to become dictator of Germany, supposedly will produce moderate spending cuts. Knowing that Standard and Poors has warned this Star Chamber proceeding, which bypasses Congress, that there are not substantial cuts in Social Security and Medicare, that S&P will again lower the US debt rating. Everyone seems to overlook that fact. That means

that if there is not large Social Security and Medicare cuts and an increase in taxes, S&P will strike again, and the bond market will burst, and Mr. Bernankes house of cards will collapse. As we explained previously the debt extension could have been passed in 15 minutes, but it wasnt because the powers behind government the Council on Foreign Relations, wanted to chop up SS and Medicare, and to put this panel in place. All is never what it seems to be. In 1887 Alexander Tyler, a Scottish history professor at the University of Edinborough, had this to say about the fall of the Athenian Republic some 2,000 years prior: "A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the government, with the result that every democracy will finally collapse over loose fiscal policy, (which is) always followed by a dictatorship." "The average age of the world's greatest civilizations from the beginning of history, has been about 200 years. During those 200 years, these nations always progressed through the following sequence: From bondage to spiritual faith; From spiritual faith to great courage; From courage to liberty; From liberty to abundance; From abundance to complacency; From complacency to apathy; (**The USA is here now**) From apathy to dependence; From dependence back into bondage." The Obituary follows: Born 1776, Died 2014? Professor Joseph Olson of Hamline University School of Law in St. Paul, Minnesota, points out some interesting facts concerning the last Presidential election: Number of States won by: Obama: 19 McCain: 29 Square miles of land won by: Obama: 580,000 McCain: 2,427,000 Population of counties won by: Obama: 127 million McCain: 143 million Murder rate per 100,000 residents in counties won by: Obama: 13.2 McCain: 2.1 Professor Olson adds: "In aggregate, the map of the territory McCain won was mostly the land owned by the taxpaying citizens of the country. * Obama territory mostly encompassed those citizens living in low income * tenements and living off various forms of government welfare..." Olson believes the United States is now near the end of the "complacency and apathy" phase of Professor Tyler's definition of democracy

With some forty percent of the nation's population already having reached the "governmental dependency" phase **If Congress grants amnesty and citizenship to twenty million criminal invaders called illegal's - and they vote - then we can say goodbye to the USA in fewer than five years. Pass this along to help everyone realize just how much is at stake, knowing that apathy is the greatest danger to our freedom. President Barack Obama is seeking to revive a version of the so-called grand bargain with congressional Republicans that would combine long-term U.S. deficit reduction through entitlement benefit cuts and tax increases with immediate steps to boost job growth. Obama plans to press Congress for billions of dollars in fresh spending to reduce unemployment as he also pursues a compromise on long-term deficit cuts. He will begin by laying out his ideas in a speech shortly after the U.S. Labor Day holiday, which is Sept. 5. With the U.S. unemployment rate at 9.1 percent and economic growth slowing, Obamas aides are working on a mix of tax cuts and infrastructure spending beyond the measures he has been promoting over the last several weeks, an administration official said, speaking on condition of anonymity because details for the speech havent been completed. Separately, Obama will present to a special 12-member congressional committee charged with coming up with at least $1.5 trillion in deficit reduction his own proposal for making deeper cuts in the nations debt. It will include raising government revenue as well as cutting entitlement programs such as Social Security and Medicare, along the lines of the scuttled deal he tried to strike with House Speaker John Boehner in July. I dont think its good enough for us to just do it part way, Obama said yesterday at a town hall event in Atkinson, Illinois. If were going to do it, lets go ahead and fix it. And if were going to fix it, the only way I believe to do it in a sensible way is youve got to have everything on the table. Wholesale costs in the U.S. rose more than forecast in July, led by higher prices for tobacco, trucks and pharmaceuticals, showing declines in commodity expenses have yet to filter to other goods. The 0.2 percent advance in the producer price index followed a 0.4 percent drop in June, Labor Department figures showed today in Washington. Economists forecast a 0.1 percent increase, according to the median estimate in a Bloomberg News survey. The so-called core measure, which excludes volatile food and energy, climbed 0.4 percent, the most since January. The report showed the cost of crude goods dropped in July for a third consecutive month, led by declining petroleum and food prices. Slowing sales and the drop in raw materials mean companies will be less likely to raise prices, which may give Federal Reserve policy makers more room to act to spur growth after the worlds largest economy almost stalled. Pipeline pressures continue to moderate, said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. Relief for producers from a long period of rising input costs are in train.

The cost of living in the U.S. climbed in July by the most in four months, led by higher energy and food prices. The consumer-price index increased 0.5 percent from June, more than twice the 0.2 percent median forecast of economists surveyed by Bloomberg News, figures from the Labor Department showed today in Washington. The so-called core gauge, which excludes volatile food and fuel costs, rose 0.2 percent. Some businesses are trying to preserve profits by recouping higher commodity costs from earlier this year, an effort that may wane as a stagnant labor market and wage growth threaten sales. While bigger grocery and fuel bills also strain household budgets, the Federal Reserve last week said longer term inflation is projected to settle at or below its goal. The CPI report is showing some continued firmness in prices, said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. Theres not a lot of improvement in the labor market, and given whats going on with economic growth, pricing power should weaken further. Ultimately, inflation will moderate, but in the meantime, it remains frustratingly high. California revenue fell short of budget estimates by $541 million or 9.2 percent last month, the first of the 2012 fiscal year, the state Finance Department reported. The data was in line with figures from Controller John Chiang, who said Aug. 9 that cash receipts for the month missed the forecast by $538.8 million. Chiang said the miss may mean further budget cuts are needed for fiscal 2012. Of the $541 million shortfall in the Finance Department calculation, $166 million was likely due mostly to the timing of deposits, according to the Finance Department bulletin. The amount included receipts from tribal gaming and regulatory fees. Chiang, a Democrat, warned of drastic cuts to universities, home health care and social programs if the trend continued. A series of triggers written into the mostpopulous states $86 billion general-fund budget would cut spending in those areas as well as libraries if revenue falls $1 billion short of plan. A $2 billion gap would mean a seven-day cut in the school year and an end to busing subsidies. New forecasts for revenue in the current spending plan will be drawn up in November and December based on the economic and cash data available at those times, H.D. Palmer, a Finance Department spokesman, said by e-mail. The new forecasts will determine whether the trigger budget reductions will be implemented. The Finance Department bulletin said the personal income- tax and corporate tax payments between December and July 2012 will play a major role in determining whether the state ultimately hits its target. Brown signed the budget in June after failing to persuade Republican lawmakers to agree to let voters decide whether to extend expiring levy and fee increases. The plan cut spending by $12 billion and counted on a recovering economy to deliver $4 billion in extra tax revenue. In July, the retail-sales levy dropped to 7.25 percent from 8.25 percent and vehicle-registration fees fell to 0.65 percent of value from 1.15 percent as the temporary measures ended. Manufacturing in the Philadelphia region unexpectedly contracted in August by the most in more than two years as orders plunged and factories shed workers. The Federal Reserve Bank of Philadelphias general economic index plunged to minus 30.7 this month, the lowest since March 2009, from 3.2 in July. The August gauge

exceeded the most pessimistic projection in a Bloomberg News survey in which the median estimate was 2. Readings less than zero signal contraction in the area covering eastern Pennsylvania, southern New Jersey and Delaware. Stocks extended their decline after the figures showed weaker demand from consumers and companies in the U.S. and abroad is posing a risk to the industry that spearheaded the recovery. Fewer customer inventories may indicate producers will see a smaller decrease in orders should the U.S. economy falter. The report is signaling a borderline recession, said John Herrmann, senior fixed-income strategist at State Street Global Markets LLC in Boston, who projected a contraction in the measure of Philadelphia manufacturing. The economy will be able to count less and less on manufacturing. U.S. mortgage rates fell to the lowest in more than half a century as concern that the global economic recovery is faltering spurred demand for bonds that guide home loans, according to Freddie Mac. The average rate for a 30-year fixed loan dropped to 4.15 percent in the week ended today from 4.32 percent, the McLean, Virginia-based mortgage financier said in a statement today. That was the lowest in more than 50 years, Freddie Mac said. The average 15-year rate fell to 3.36 percent from 3.5 percent. The decline followed a slide in yields for 10-year Treasury notes, a benchmark for consumer debt including mortgages. The yield touched a record low today of 1.9735 percent, after Morgan Stanley cut its forecast for global growth and concern grew that Europes debt crisis may deepen. Lower mortgage rates have done little to boost home demand as the housing market stagnates. Low interest rates are helpful at the margins but its indicating a lot of concerns about the economy, said Scott Brown, chief economist for Raymond James & Associates Inc. in St. Petersburg, Florida. The move into Treasuries is driven by fear. Housing demand is depressed as the U.S. unemployment rate sticks above 9 percent and lenders tighten standards. Sales of previously owned homes unexpectedly dropped in July, according to a report today by the National Association of Realtors. Purchases fell 3.5 percent to a 4.67 million annual pace, the weakest since November. The median forecast of economists surveyed by Bloomberg News called for an increase in sales. The low rates are doing absolutely nothing to stimulate the market for existing homes, said Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts. Its a combination of tight credit and weak demand coming from uncertainty and housing prices falling. Freddie Mac records dating back to 1971 show the previous low for a 30-year fixed mortgage was 4.17 percent in November. Data from the Bureau of Economic Research measuring Federal Housing Administration loans indicate that long-term borrowing costs are the lowest since the 1950s, said Chad Wandler, a spokesman for Freddie Mac. The lower mortgage rates are helping to boost refinancing as homeowners seek to lower their monthly payments, Frank Nothaft, Freddie Mac chief economist, said in the statement. A Mortgage Bankers Association index of refinancing jumped 8 percent in the week ended Aug. 12, the Washington-based trade group said yesterday. The share of applicants seeking to refinance climbed to almost 79 percent, the largest since November. The groups purchasing gauge declined 9.1 percent to the lowest level in a year.

Prices paid for California homes dipped last month as distressed properties continued to make up more than half of the market. The median price paid for new and resale houses and condominiums statewide last month was $252,000, down 0.4% from June, and down 6% from July a year ago, real estate data provider DataQuick said. The states median the point at which half the homes sold for more and half for less has fallen year-over-year for 10 consecutive months. The medians bottom for the current real estate cycle was $221,000 in April 2009, and the peak was $484,000 in early 2007. Fewer homeowners entered preliminary mortgage modifications under the Obama administration's signature foreclosure prevention initiative in June than in any month since April 2009, according to government data released Friday. Since the Home Affordable Modification Program launched in the months following President Obama's inauguration, nearly 870,000 struggling homeowners have been kicked out of the initiative, while just 657,044 remain in permanent modifications Housing experts say the $1,000 payments mortgage servicers get for successful modifications, and the lack of consequences for disobeying program guidelines, don't provide enough incentive to modify many mortgages. "When the Treasury Secretary himself acknowledges that the incentive structure is 'not powerful enough' and then does nothing to address it," Neil Barofsky, the Treasury Department's former bailout watchdog, said in an email, "when the abysmal performance of the mortgage servicers is met with a gimmicky so-called sanction to temporarily suspend payments for less than a handful of servicers, and when rather than confront these flaws Treasury attempts to spin more than 800,000 HAMP failures as successes, it is not surprising that already anemic HAMP results continue to get worse and worse." Barofsky continued, "The downward trend of this failed program will continue unless and until Treasury admits its mistakes and makes a real effort to revamp HAMP so as to deliver on its original promise to the American people." Eleven new violent crimes involving guns bought under the controversial Fast and Furious weapon-running scheme have been identified by the Justice Department. And Kenneth Melson, the acting head of the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF) likely knew about the program more than a year earlier than he has previously acknowledged, assistant attorney general Ronald Weich told two leading senators. The new revelations, reported by the Los Angeles Times, are sure to reignite the controversy surrounding the operation in which ATF officers were told not to intercept semi-automatic weapons that they knew would end up in the hands of Mexican drug cartel leaders. The plan was to trace the guns which would then lead them to the drug kingpins. But the agency lost track of most of the weapons, two of which were recovered at the scene where U.S. border agent Brian Terry was murdered in Arizona. U.S. immigration officer Jaime Zapata was also killed by one of the weapons while working in Mexico. In a letter to Sens. Patrick Leahy, D-Vt., and Charles Grassley, R-Iowa, the two leading members of the Senate Judiciary Committee, Weich said that 1,418 weapons were involved in Fast and Furious. Previous estimates had put the figure at around 2,000. Weich did not say exactly how many were still unaccounted for. But he said that the department now knows of 11 instances beyond Terrys

killing, where a Fast and Furious weapon was recovered in connection with a crime of violence in the United States. The Times says 40 of the firearms were recovered at one crime scene in El Paso, Texas, and 17 more at five other scenes in Arizona. The new revelations intensify the war of words between Melson and the Justice Department under attorney general Eric Holder. Weich said Melson likely became aware of Fast and Furious on December 9, 2009, as part of a briefing following a seizure of weapons in Douglas, Ariz. Melson had said he did not know about it until January this year. Early this summer, when Melson was under pressure to resign, he took the extraordinary step of giving a secret deposition in which he claimed the DoJ was pressuring his agency into not cooperating with Congresss investigation into the program. Confidence, the foundation of our economy and our markets and our democracy, is collapsing around us. You can see it in the extreme volatility in the stock market, where 2% declines (interrupted occasionally with a 2% gain) have become commonplace. Investors are in a panic, rushing for the safest assets, such as cash, bonds, and gold. And were seeing it in the economic data. Manufacturing firms in the Philadelphia region reported Thursday morning that business is horrible. Nearly half of the respondents to the monthly Philly Fed survey said business conditions had worsened in late July and early August. Forty-seven percent said new orders declined, while more than a third said shipments decreased. Read our complete story on Philly Fed factory index in free fall. The 34-point drop in the Philly Fed index was the largest since October 2008, when the global economy was reeling from the failure of Lehman Bros. and the neardeath of many other significant banks. The drop in the Philly Fed index to negative 30.7 in August follows a weakerthan-expected survey from the New York Federal Reserve Bank earlier in the week. The news from these two Fed banks is that something awful is happening to business confidence. Wasnt the big fight in Washington and Europe over debts supposed to restore confidence? The severe decline in the Philly Fed doesnt prove were falling into a recession. Its given false signals before. And other indicators dont show that the economy is slowing sharply (even if it is weak). For instance, : weekly jobless claims figures have been nearly unchanged in recent weeks. Industrial production was strong in July. The leading economic indicators rose 0.5% in July. What the Philly Fed index does show along with the selloff on Wall Street, the rally in gold and bond markets, and the gloomy mood on Main Street is that faith in the markets and in the economy and in politics have been shaken. Once confidence is lost, it is not easily regained. And confidence is what we need before well invest in the future. The world could sure use a leader right now, but whom do you trust to lead us back to prosperity? A technocrat? A prophet? A salesman? Maybe each other? For the first time ever, more of the corn crop may go into gas tanks than into the stomachs of cattle and poultry destined for kitchen tables. The prediction drew little response last week when it was released by the USDA in its Crop Production and Supply/Demand Report for the 2011 crop season. The USDA

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kept its prediction for ethanol production demand for corn at 5.05 billion, but lowered demand projections for livestock feed by 100 million bushels to 5 billion bushels. That fuel now tops livestock as the primary user of corn struck at least one observer as noteworthy. Thats a first-time-ever type of change, University of Missouri Extension economist Ron Plain said in a statement released by the university. For forever, Plain said, feed was the largest single use of corn. The news comes as criticism that pro-ethanol subsidies and policies are raising food prices globally seems to be reaching a crescendo. Critics didnt seem to latch onto the USDAs market prediction, however. A spokesman for Iowas ethanol industry termed the USDAs market prediction a footnote. Every credible study has clearly found the effects of ethanol policies is negligible on the price of corn, remarked Monte Shaw, president of the Iowa Renewable Fuels Association. The USDA Thursday lowered its soybean and corn harvest estimates for the 2011 crop significantly and said ethanol plans will consume more corn than livestock. This years corn crop will be down 556 million bushels, or 4 percent less than projected in July, according to the Crop Production and Supply/Demand Report. Soybean yields will be 169 million bushels, or 5.24 percent lower than the July estimate of 3.225 billion bushels, the report indicated. The USDA predicted Iowas total corn production will rise from 2.15 billion bushels in 2010 to 2.43 billion billion bushels in 2011. Iowas harvest is predicted to yield 177 bushels per acre. That is higher than last years 165 bushels per acre, but shy of the record of 182 bushels. A primary reason for the shift in grain demand away from livestock is the thinning of herds and flocks in order to reduce red ink and improve prices for producers, University of Missouri Extension said in a statement released Thursday. Plain said yield estimates were cut due in part to excessive heat in July, flooding, and other weather events. He said corn does not grow as well when temperatures at night remain high. The USDA projected that carryover stocks of corn will drop to 714 million bushels, a level last not seen since 1996. The very, very tight carryover is why corn prices are going to be record-high this year, Plain said. We really need to plant more acres to corn next year than this year, and this was the second most acres planted in 67 years. The SEC has violated federal law by destroying the records of thousands of enforcement cases in which it decided not to file charges against or conduct fullblown investigations of Wall Street firms and others initially suspected of wrongdoing, a former agency official has alleged. The purged records involve such major firms as Goldman Sachs, Citigroup, Bank of America, Morgan Stanley, and hedge fund manager SAC Capital, the former official claimed. At issue were suspicions such as insider trading, financial fraud, and market manipulation. The allegations come at a time when the Securities and Exchange Commission faces criticism that it has pulled punches or missed warning signs in its policing of Wall Street. A file closed in 2002 involved Lehman Brothers, the investment bank whose collapse fueled the financial meltdown of 2008, according to the former official. A file closed in 2009 involved suspected insider trading in securities related to AIG, the

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insurance giant bailed out by the government at the height of the financial crisis, the former official wrote. Others involved Bernard Madoff, whose multibillion-dollar Ponzi scheme the agency failed to stop despite repeated tips. The allegations were leveled in a July letter to Senator Charles Grassley, Republican of Iowa, from Gary Aguirre, a former SEC enforcement lawyer now representing a current SEC enforcement lawyer, Darcy Flynn. From 1993 through July 2010, records of about 9,000 preliminary inquiries were destroyed, Aguirre wrote. The inquiries, a first step in the enforcement process, can lead to full-fledged SEC investigations or they can be dropped without further action. They are known as MUIs, or matters under inquiry, and are opened when the SEC has reason to suspect someone violated securities law. Federal Reserve Bank of Dallas President Richard Fisher said the central bank shouldnt ease monetary policy whenever there is a big drop in U.S. stock prices, an action he said some traders might view as a Bernanke put. My long-standing belief is that the Federal Reserve should never enact such asymmetric policies to protect stock market traders and investors, Fisher said today in Midland, Texas. I believe my FOMC colleagues share this view. Fishers comments offered his first explanation of his dissent from the Federal Open Market Committee decision last week to specify a date for their commitment to low borrowing costs. The Fed said the benchmark interest rate will stay in a range of zero to 0.25 percent at least through mid-2013. The new language replaces a prior promise to keep rates low for an extended period. While seven members of the panel favored the action, Fisher, Charles Plosser of Philadelphia and Narayana Kocherlakota of Minneapolis voted no. The last time three voters dissented was on Nov. 17, 1992, under Chairman Ben S. Bernankes predecessor, Alan Greenspan. I was also concerned that just by tweaking the language the way the committee did, our action might be interpreted as encouraging the view that there is an FOMC socalled Bernanke put that would be too easily activated in response to a reversal in the financial markets, Fisher told a group of area community officials and business leaders today. The U.S. and euro area are "hovering dangerously close to recession, "the brokerage cut its 2011 global gross domestic product growth forecast to 3.9% from 4.2%, and its 2012 estimate to 3.8% from 4.5%... lowered its 2011 GDP growth forecast for the euro zone to 1.7% from a previous estimate of 2%, and its 2012 estimate to 0.5%, from 1.2%. For China, Morgan Stanley downgraded its 2012 GDP growth estimate to 8.7% from 9.0%. Goldman Sachs also made downward revisions to its global GDP growth forecasts. The brokerage now expects 4.0% growth in 2011 and 4.4% in 2012, compared with previous estimates of 4.1% and 4.6%...The most significant downgrades relate to the U.S. and Europe. The brokerage cut its 2011 GDP growth forecast for the U.S. to 1.7% from 1.8% and for 2012 to 2.1% from 3.0%. For Europe, Goldman downgraded its 2011 GDP estimate to 1.9% from 2.1% and its 2012 estimate to 1.4% from 1.7%. U.S. regulators are stepping up scrutiny of local operations for Europes largest banks on concern that the regions sovereign debt crisis may lead to funding problems, the Wall Street Journal reported today.

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The Federal Reserve Bank of New York has been holding talks with the lenders and sought information about their access to funds to maintain operations in the U.S., the Journal said, citing people it didnt identify. The regulator has also been asking some lenders to overhaul their structure, it said. Policy makers, who aim to avert a repeat of the 2008 global financial crisis, are concerned that Europes debt problems may curtail the banks ability to fund loans and meet their obligations in the U.S., or lead them to siphon funds from the U.S., the newspaper said. The problems havent yet escalated to the level of previous crises, it said. Overseas lenders that dont have big branch networks in the U.S. can borrow dollars from other lenders, the central bank or money-market funds, or swap their domestic-market currencies, the newspaper said. Those avenues of funding typically disappear in a crisis, it said. Fed officials are in touch with European regulators over the issue, the newspaper said. The New York Fed is also coordinating with Benjamin M. Lawsky, New Yorks superintendent of financial services, to oversee the banks funding situation, the Journal reported. We have been screaming for the past several quarters that big banks were crafting earnings by depleting loss reserves. But big banks are also creating earnings on the backs of taxpayers. The NY Posts John Crudele: Heres whats behind the surge in refinancings. This time banks are churning their mortgage portfolios by refinancing the home loans of people who didnt even ask. Why? Because then the banks can receive a payment from the US Treasury Department -- which, of course, gets its money from you, the taxpayersome of the largest banks seem to have taken to simply changing the terms of old mortgages and turning them into new loans. According to government statistics provided by BankRegData.com, Chase Bank at the beginning of 2011 had restructured an enormous 10.67 percent of all the mortgages it holds on one-family to fourfamily houses. That figure was just 5.12 percent one year earlierThat means nearly $12 billion of mortgages were refinanced within a year by JPMorgan Chase alone, which is a huge increase over historical patterns Citibank had restructured 12.78 percent of its mortgages by the first quarter of 2011. Bank of America and Wells Fargo have much lower percentages of restructured mortgages at 3.92 percent and 3.10 percent, respectively. But they may be trying to catch up One insider admitted its because of the origination fee they are getting from the governments Home Affordable Refinance Program. HARP, as it is called, is designed for people current on your mortgage [who] have been unable to obtain a traditional refinance because the value of your home has declined. In other words, just about anyone is eligible for HARP. And the banks have been using that to their advantage The 12 lawmakers appointed to a new congressional supercommittee charged with tackling the nation's fiscal problems have received millions in contributions from special interests with a direct stake in potential cuts to federal programs, an Associated Press analysis of federal campaign data has found. The newly appointed members - six Democrats and six Republicans - have received more than $3 million total during the past five years in donations from political committees with ties to defense contractors, health care providers and labor unions. That money went to their re-election campaigns, according to AP's review.

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Supporters say the lawmakers were picked for their integrity and experience with complicated budget matters. But their appointments already have prompted early concerns from campaign-finance watchdog groups, which urged the lawmakers to stop fundraising and resign from leadership positions in political groups. The congressional committee, created as part of the debt limit and deficit reduction agreement enacted last week, is charged with cutting more than $1 trillion from the budget during the coming decade. If the committee doesn't decide on cuts by late November - or if Congress votes down the committee's recommendations - spending triggers would automatically cut billions of dollars from politically delicate areas like Medicare and the Pentagon. The lawmakers represent a large swath of political ideology and geography, but they have some things in common: They received more than $1 million overall in contributions from the health care industry and at least $700,000 from defense companies, the AP found. Those two industries, especially, are sensitive to the outcome of the committee's negotiations because the automatic spending cuts could affect them most directly. The committee's co-chairs - Sen. Patty Murray, D-Wash., and Rep. Jeb Hensarling, R-Texas - each received support from lobbyists and political committees, including those with ties to defense contractors and health care lobbyists. Hensarling's re-election committee, for instance, received about $11,000 from Lockheed Martin and $8,500 from Northrop Grumman. Companies like Lockheed rely heavily on government contracts: More than 80 percent of Lockheed's net sales during the first six months of 2011 came from the U.S. government, according to Securities and Exchange Commission records. And in SEC filings two weeks ago, Northrop expressed concern of a "material adverse effect" on its finances had the debt ceiling not been raised. The other panel members are Sens. Max Baucus, D-Mont.; John Kerry, D-Mass.; Jon Kyl, R-Ariz.; Pat Toomey, R-Pa.; and Rob Portman, R-Ohio; and Reps. Jim Clyburn, D-S.C.; Xavier Becerra, D-Calif.; Chris Van Hollen, D-Md.; and Michigan Republicans Dave Camp and Fred Upton. The AP's analysis shows the extent to which special interests have directly supported the 12 members during their tenures in Congress, including support from agriculture businesses ($600,000) and labor unions ($580,000). Big checks also came in from the banking and insurance industry. The extent of potential conflicts could be even greater than the AP's analysis shows. The AP measured contributions from industry PACs to lawmakers' election committees. But it didn't capture amounts from independent expenditures, such as donations, from defense executives and their families or money given to leadership political committees. Even still, influence can extend beyond direct campaign contributions. Senate records show that Murray, also the chairwoman of the Democratic Senatorial Campaign Committee, was named in so-called honoree payments of more than $1 million from lobbyists since 2008. Such honoree contributions are sent to groups associated with members of Congress or for events held in their honor. Murray spokesman Matt McAlvanah said Thursday that the senator "has made a career out of standing up for working families and against special interests. And that's reflected in her personal story, her votes and the policies she has championed." Already, even as the final appointments to the committee were announced Thursday, watchdog groups said the panel members will be under remarkable pressure from outside interests. Public Campaign, one such group in Washington, said establishing the committee "will make it cheaper for Wall Street, tax-dodging

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corporations and special-interest lobbyists to influence the spending cuts and revenue debate in Washington as the focus shifts to just 12 members of Congress." Bob Edgar, president of the advocacy group Common Cause, said that "with the public already disgusted with Washington in the wake of the debt-limit debacle, it's vital that people have confidence that supercommittee members are thinking about the nation's best interests, not positioning their party or worrying about how their decisions appear to donors." Public Campaign also called on Murray to step down immediately as head of the Democratic campaign committee. The White House called such complaints "silly criticism." "Elected members of Congress are responsible: They take an oath, they are responsible to serve their constituents and their country," White House Press Secretary Jay Carney told reporters this week. "We expect every member on the committee to take that responsibility seriously." More Americans than forecast filed applications for unemployment benefits last week, signaling the labor market is struggling two years into the economic recovery. Jobless claims climbed by 9,000 to 408,000 in the week ended Aug. 13, the highest in a month, Labor Department figures showed today in Washington. Economists surveyed by Bloomberg News projected a rise in claims to 400,000, according to the median forecast. The number of people on unemployment benefit rolls rose, while those receiving extended payments fell. Companies like Bank of New York Mellon Corp. (BK) are paring staff, one reason consumers are limiting their spending, which accounts for about 70 percent of the economy. Unemployment at 9.1 percent helps explain why Federal Reserve policy makers last week pledged to hold interest rates at a record low until at least mid-2013 to spur growth. People continue to get laid off, David Semmens, a U.S. economist at Standard Chartered Bank in New York, said before the report. The uncertainty in the economic outlook is continuing to give hiring managers sleepless nights and is keeping businesses from expanding. We have an incredibly long way to go to get a healthy labor market, Semmens said. Something to ponder:

William Mount FLIGHT 447 Tue Aug 16, 2011 12:05 174.253.208.165 Flight 447 was an airbus 330 twin engined plane that took off from Rio DeJaneiro to Paris on 1 June 2009. It never made it. 228 people killed, lost at sea.

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With the recent release of the flight box recordings we can easily read that the pilots completely lost control of the craft - some one else was flying the plane. The real question is: Why We know that that after 911 George Bush ordered Congress to extend the licensing of the QSR-11 Gyroscopic Remote Control Device for ALL Commercial Airliners see H. Doc. 108-139. We know that Hillary Clinton, as a Patent Attorney, helped keep this a secret. We also know that this little device allows some one else to take over the flying of your plane: IE 9/11. But why? Follow the money. Brazil was ordered to "Play Ball" with the Rothschild's Banking Family in London and refused, just like Norway a few weeks ago. Directly after the downing of Flight 447 watch what happened: 1) Brazil and Russia announce the purchase of $20 Billion in IMF Bonds - Debt 9 days after the downing of the plane. 2) In August the Wall Street Journal announced that: Obama has authorized the spending of $2 Billion US Dollars to begin Drilling for Oil off the Brazilian Coast. George Soros is expected to make Billions. See: "Obama To Invest in Oil Drilling in Brazil." 18 Aug 2009. In other words: We will drill off your coast whether you like it or not. If you resist, we will kill you. 3) The value of the Brazilian Dollar (Compared to the US Dollar) was being kept around $.38/Dollar - good for selling the US lots of products from Brazil. When the IMF tried to raise it to $.62/US dollar Brazil resisted. Their resistance crumbled after flight 447 was downed. The Brazilian Government "Wimped Out." Once again David Rothschild of the Rothschild Banking Family in London struck again. "They" call it politics. God calls it Blackmail and Murder.

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President Lula of Brazil, King Harald of Norway: Are you men or mice? Pray with me - Visualize - that those who ordered this murder are tried, convicted and sentenced immediately by the Boss upstairs. Pray with me - Visualize - that The Boss Upstairs raises up real leaders to stand against these Satanists at the top. Your Prayers - visualizations - are incredible. More on that tomorrow. Thank you and good night. Honorable Grace Dr William B. Mount Knight of Malta Cpt - (Ret) USA
SHORT NOTES You paid federal income taxes. Why didn't Verizon? Verizon reported $24.2 billion in pre-tax income for 2009 and 2010, yet paid $0 in federal income tax. In addition, Verizon actually claimed a REFUND of $1.3 BILLION, earning it a place on what the Washington Times calls the "Tax Evaders Wall of Shame." The Feds weekly H.4.1 report shows that the Fed balance sheet contracted $14.541B for the week ended on Wednesday. The big item is an $8.251B decline in foreign-denominated holdings. MBS fell $4.716B; Treasuries fell $3.61B. The media hyped that Obama will announce a jobs plan after Labor Day. There are only two jobs plans: 1) Tax incentives or other inducements for the private sector; and 2) government jobs. For over a decade tax benefits for capex and accelerated depreciation, low interest rates and easy money, did not create US jobs. Large corporations moved production offshore. There is no chance for government jobs due to budget constraints and the new budget agreement. And did Obama already play the infrastructure (shove-ready) jobs card to little or no benefit? GOLD, SILVER, PLATINUM AND PALADIUM Wednesday was another good day as spot gold rose $8.80 to $1,79120. December rose $8.80 to $1,791.20.Spot silver rose $0.53 to $40.35, as September rose $$0.59 to $40.41. Gold reached another all-time high close. Silver has two massive bases at $39 and $40, and $32.50 to $36.00. All those losers who say silver is going to $20.00 and gold to $1,640 have been wrong attain. They have lost billions for their readers for 5-1/2 years and they will lose billions more for whoever will listen to their absurdities, in their effort to sell subscriptions and DVDs. Gold open interest rose 3,376

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contracts to 514,107 and silver rose 148 to 116,007. The HUI rose 5.13 to 578.13 and the XAU rose 2.24 to 212.52. The big news of today is that Venezuela told the Bank of England to transfer billions of dollars in cash reserves in dollars from abroad to banks in China, Russia and Brazil. That is $6.3 billion in cash and most of which is kept at the BIS in Basil and at Barclays in London. 211 tons of their gold will be shipped to the vaults of the Venezuelan Central Bank in Caracas. Now lets see if the Bank of England can and will deliver? Is Venezuela front-running litigation that might give compensation to foreign companies for properties that have been nationalized? Or is the money and gold to be kept as collateral for loans China has given Venezuela? The Venezuelan government said they want their money before the dollar collapses. We believe this is Chavezs swan song before he enters life hereafter. If the gold and cash is not returned it will be a devastating event for the BIS and England. In another address Mr. Chavez says he is nationalizing gold and silver mining companies. We expect other countries with Communist leadership such as Peru, Bolivia, Ecuador and Uruguay to follow Chavezs lead. Dubais gold traders say buying is up 100%. The buyers are from everywhere. The ECB says gold and gold receivables were unchanged. The number of mortgages that are delinquent or past due or in foreclosure are 6,538,000. That is an additional 190,000 over the past two months. The delinquency rate rose to 8.34%, up 2.4% from June. John Paulson, whose biggest hedge fund lost 31% this year, sold half of its stake in Bank of America. He also sold Citigroup shares last quarter. Paulson obviously now does not believe there will be a recovery by the end of the year. Real annual inflation is about 11.2% according to economist John Williams, if calculated on the BLS formula of 1980. The government and its purchased Congress refuse to cut spending and reduce the deficit. We expect dollar and US dollar assets selling to accelerate in the near future, which will hasten inflation. Hedge funds are now buying gold from JPMorgan Chase, which holds the gold in safe keeping for a fee .15%. We believe it is a scam. A scam similar to what Morgan Stanley was successfully prosecuted for several years ago. Morgan is banking on the fact few will take delivery, and they are again naked short. GLD and SLV are doing the same thing. This removes billions of dollars of real demand from the physical market. Morgan wants the business and that probably is why they called for $2,500 gold last week. The real tip off is that private depositories charge .5%, vastly more expensive than Morgans deal. If it is too good to be true, it is too good to be true. The latest word is a suit has begun accusing Goldman Sachs of manipulating the aluminum market. On Thursday spot gold rose $27.70 to $1,818.90, as December rose $33.90 to $1,823.60. Spot silver rose $0.34 to $40.69, as September rose $0.39 to $40.74. When we move into September, December will be the next active outside month. Your government stopped golds move upward again at exactly 2%. The manipulation is blatant and very easy for anyone to see. Gold open interest rose 506 contracts to 514,613, as silver OI rose 1,276 to 117,283. The HUI fell 9.96 to 568.16 and the XAU fell 5.97 to 206.55. Venezuela has asked for $11 billion in gold or 211 tons of 365 tons from the safe keeping at the Bank of England, JPMorgan Chase, Barclays, Standard Chartered and the Bank of Nova Scotia. 99 tons has been at the BofE since 1980. The central bank will also dump $28.7 billion in US dollar reserves. As we predicted long ago, Chavez will nationalize the gold mining industry.

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Indian jewelry demand was up 17% at 139.8 tons in the 2nd quarter. Demand for gold bars and coins rose 78% to 108.5 tons. In China jewelry demand rose 16% or 102.9 tons and coin and bar purchases rose 44% yoy to 53 tons. Consumer confidence is simply dreadful. Bloombergs Index fell to minus 34 from minus 22 in July. The weekly gauge fell to a minus 48.3 from the period ended August t14th versus minus 49.1. The City of Los Angeles and two other municipalities that voluntarily commissioned S&P ratings have dropped the ratings after being downgraded. Many others of some 90 are considering leaving as well. Morgan Stanleys lowering of GDP growth from 4.2% to 3.9% for the year is truly laughable. They also cut their GDP estimate for the group of 10 nations to 1.5% this year, down from 1.9%. Central banks bought 69.4 tons of gold in the 2nd quarter, more than 4 times the 14.1 tons yoy. Over the first half of the year their purchases totaled 192.3 tons, or 2-1/2 times the 72.9 yoy. No more net sellers, or even sellers. This must have the Illuminists up in arms. The Dow was as low as minus 528 but the government made sure it only finished off 419 to 10,990, as S&P fell 477 and Nasdaq 786 Dow points. The 10-year T-note yielded 2.09%. The yen fell .0012 to $.7552; the euro fell .0115 to $1.4331; the pound fell .0051 to $1.6511; the Swiss franc fell .0060 to $.7919 and the Canadian dollar fell .0084 to $1.0107. The USDX gained 51 to 74.18. Oil fell $6.00 to $81.57, gas fell $0.9 to $2.78 and natural gas fell $0.02 to $3.92. Copper fell $0.09 to $3.94, platinum rose $7.50 to $1,848.30 and palladium fell $21.10 to $754.80. The CRB fell 7.72 to 326.42. On Friday spot gold rose $30.00 to $1,848.90, as December rose $33.10 to $1,855.10. Spot silver rose $1.74 to $42.43, as September rose $2.28 to $42.97. At 6:47 EDT gold was up $157.00 and silver was up $1.26. That set the stage for the day. At one point gold was up $60.00, but it had to settle for half that amount as your government again attacked. Both finished very strong and baring any unusual event they both will open up higher on Monday. This was a special very powerful day. All those naysayers have again buried their subscribers. A commercial signal failure is in progress. This as we pointed out before is going to be a very powerful rally that will end in March perhaps at $3,000 to $3,200. The gold suppression cartel has lost control of the gold and silver prices and we do not know if they can regain it. It could be that Venezuelas demand for the return of its gold could cause havoc and other nations could follow. This is the last thing these financial terrorists need. It could cause panic in the ranks of the Illuminati. Silver was more powerful then gold today, some three times and the naked shorts have to be disturbed. As we told you their wipe out of small and medium silver longs from $50.00 to $32.50 left no overhead resistance to the upside. Thus, it is clear sailing for silver to $50.00. This is nightmare time for the elitist. We just feel bad for all those who did not listen and those who do not have a clue and will lose everything. Today silver broke out massively. Gold open interest rose 6,633 contracts to 521,246. That is a blessing, as we see little resistance until we see 630,000. Silver OI fell 1,130, which is another good omen. The gold and silver short losses have to be enormous, both in bullion and shares. That means gold and silver may not see any further margin increase, because it could destroy the shorts. The COT commercials, banks, increased their net shorts by 5,340 contracts. They tried to hold silver below $40.00 and will now pay a dear price. Gold commercials

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cut their net short position 3,128. Incidentally, the dollar could soon test 71.18 on the USDX. We will see if it holds. AEM rose 3.15%, or $2.00 to $65.57; GG rose 3.51%, or $1.75 to $51.65; SSRI rose 0.04%, or $0.01 to $25.45; MFN was unchanged at $15.69 and PVG.V rose 2.35%, or $0.23 to $10.02 and PXZRF in the US rose 0.83%, or $0.08 to $10.05. The high yield market had its worst day and sell off in 25 years. Junk bonds are no longer attractive and this portends a large stock market drop. We could well see a replay of the credit crisis, as funds migrate to gold and silver bullion and shares. The S&P says not only will they downgrade US debt if the Obama Enabling group doesnt cut Social Security and Medicare to their liking. They will also be cutting municipal ratings if federal funding is cut. This is more fundamental than technical. Relative to gold, both the HUI and XAU have reached extreme under valuations and you should be buying with both hands. The XAU rose 3.92 to 210.44 and the HUI rose 13 to 581.26. On 8/17/11, the percentage of trades to the short side were AEM 40%; AG 43%; GG 47%; NEM 52%; PAAS 54%; RGLD 43% and SLW 34%.

Discount Gold & Silver Trading For the best in pricing and service for gold and silver coins, call Melody at 1-800375-4188. Be sure to listen to DGSTC live on Short-wave 7.415Mhz M-F 4:00PM ET, and 3.215 MHz M-F 11PM ET. Online listen to archives at discountgoldandsilvertrading.net and American Voice Radio Call 1-800-375-4188 or visit the Web site at www.discountgoldandsilvertrading.net or email us at: discountgoldandsilver@yahoo.com Discount Gold & Silver Trading Co. provides all forms of precious metals including gold, silver platinum and palladium whether you are buying or selling. Our inventory includes but not limited to the American Gold, Silver, Platinum Eagle and numismatic products including rare, investment and circulated coins. Silver dollars, silver bars, rounds are on hand for the silver investor. Foreign gold is also available. Call for information regarding your precious metal gold and silver IRA. 1 800 375 4188 *************** Many of Bobs subscribers love buying 90% Silver at Spotgive us a callqtrs and dimes onlyvery good plus condition. $500 and $1000 face value bags include your next renewal payment for your International Forecaster and free shipping.call Melody at 1 800 375 4188 (Prices are subject to change without prior notice due to silver market availability and conditions) We also have great prices for XF Morgan Silver Dollars dated prior to 1900. Give us a call for all of your gold and silver needs. 1 800 375 4188just ask for Melody. Inflation or Deflationor Both? The concepts of inflation and deflation are important since they appear to correlate with economic activity. Inflation tends to correlate with increasing economic activity and is deemed to

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stimulate the economy. Deflation tends to correlate with recession and especially depression. So long as theres inflation, the economy should be growing. If theres deflation, the economy will be contracting. Given the psychological nature of our economy, so long as people believe that inflation is present, theyll be encouraged to have confidence that the economy is growing. So long as they have confidence, theyll be inclined to borrow and spend to keep the economy growing. Moderate inflation inspires a kind of self-fulfilling prophecy: the promise of inflation (paying off your debts with cheaper dollars) encourages people to borrow and spend. Conversely, if people believe deflation is taking place, theyll lose confidence in the economy, refuse to borrow (since theyll have to repay their loans with more expensive dollars) and stop spending. Result? A mere belief that deflation is present can also create a self-fulfilling prophecy that can degrade or even cripple an otherwise solid economy. Thus, the importance of the concepts of inflation and deflation has more to do with psychology than mathematics and objective truth. If people merely believe in inflation, theyll borrow and spend. If they believe in deflation, theyll save and stop spending. Therefore, to keep the economy growing, the federal gov-co and Federal Reserve have worked persistently for over 70 years to cause inflation (or at least cause the people to believe in inflation). Conversely, gov-co and the Fed have worked mightily to prevent the peoples belief in deflation. Peoples economic behavior is manipulated by fostering a belief in inflation or deflation. The truth of inflation or deflation can be almost irrelevant. The appearance (of inflation or deflation) can predominate. Finding the truth of inflation/deflation can be difficult because the most respected sources of such information have vested interests in manipulating the people to go faster (economically) or slow down. Therefore, rather than tell the objective truth, those sources routinely lie to instill the desired belief. The concepts of inflation and deflation are no longer reflections of objective truth so much as mechanisms of subjective control of the population. For example, whats the current rate of inflation? Some say its about 3.5%. Others say its closer to 10%. Others claim we are already in a condition of negative inflation (deflation). Which is it? Well, it depends on how you calculate. Since home prices are falling, including home prices in an inflation-rate calculation tends to diminish the inflation rate. Therefore the gov-co (which wants belief in inflation to stimulate the economy and to reduce the national debt) calculates current inflation rates without including the falling prices of homes. The result is a relatively high rate of inflation (and concealment of evidence of deflation). Other economists include home prices in their calculations and conclude that inflation is not only lower than gov-co suggestsbut might be evidence that were already in a state of deflation. Is the rate of inflation rising or falling? Some economists calculate that the long term (since A.D. 1990) trend in inflation has been downward. But those same economists calculate that the most recent six-year trend is upward. So, is rate of inflation going up or down? It depends on your time frame. Inflation might be up for this hour, down for the day, up for the week, down for the month, and up for the year. If you find these observations confusing, youre not alone. Economists routinely talk about inflation, without even agreeing on a single definition for the word.

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For example, one source defines inflation as a rise in the general level of prices of goods and services in an economy over a period of time. Another source defines inflation as a net increase in money supply and credit, with credit marked-to-market. And hyperinflation is defined as a complete loss of faith in currency. (That reference to faith in the currency parallels my observations that the essential meaning of inflation has more to do with subjective confidence than mathematics.) In fact, if you talk to a dozen economists, you might find at least a half-dozen different definitions for inflation. So what is the definition of inflation? Nobody knows. Or, if anyone knows, almost no one else agrees. When it comes to calculating inflation/deflation, I rely on the red bell pepper test. I like red bell peppers in my spaghetti sauces and salads. So when I go to the grocery store, I purchase a couple of red bell peppers and shake my head in disbelief. I know that just a few years ago, I could buy red bell peppers for 50 cents each. Ive watched their prices rise to $1 each, then $1.49 and now they are $2. EACH. But I still buy em. I find the rising price shocking, but I accept that rise as a consequence of inflation. Thus, my red bell pepper test tells me that the U.S. is beset by serious inflation. But someone else might use the personal computer test to calculate inflation rates and conclude that were in an era of deflation. Just as the cost of my peppers are rising to levels that seem shocking, the cost of computers is falling to levels that are also shocking. Today, you can purchase a computer for less than $1,000 that has more computing power than a multi-million dollar mainframe of 40 years ago. By the personal computer test, we are in an era of deflation. My point is that calculations of inflation/deflation is often more personal and subjective than mathematical and objective. We tend to calculate inflation rates as measured by the prices of those items that we find most personally relevant. For those fixated on the price of peppers, inflation rules. For those fixated on PCs, deflation reigns. More, while the prices of some things are going up (inflation), the prices of other things are simultaneously going down (deflation). Thus, differences in supply and demand and in technological advances can cause both inflation and deflation in different arenas within the same economy. Even more confusion, hmm? So, whats the one thing thats personally relevant to virtually everyone and can therefore provide a reliable measure of inflation? Money. As much as I like red bell peppers and some folks like computers, almost all of us like money even more. As measured by the US Dollar Index, since A.D. 2000, the fiat dollars value (purchasing power) has fallen from 125 to 74about 40%. Thats inflation. But the US Dollar Index compares the dollars value against six other fiat currencies that are also falling in value. Therefore, the dollars real loss in purchasing power over the past decade is probably more like 60%maybe moreand may have averaged about 6% per year. During the same period, the price of gold increased from about $280 to $1,850about 660%. As measured by US dollars, thats serious inflation. It takes almost seven of todays dollars to buy as much gold as could be purchased with one dollar in A.D. 2000. That tells us that todays dollars have only one-seventh the purchasing power of those of A.D. 2000. This implies that the average inflation rate over the past 11 years has been 8%. Clearly, as measured by the US Dollar Index and the price of gold, the fiat dollar has been in a period of persistent inflation for the past 11 years.

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Conventional wisdom suggests that our 11 years of inflation should correspond to a growing economy. And that was true until A.D. 2008 when, despite the inflation (normally a hallmark of a growing economy), our economy crashed and began to shrink into recession. Therefore, some people contend that, since A.D. 2008 we must be in or close to a period of deflationwhich normally signals a recession or depression. Could be. But, since October, A.D. 2008, the price of gold has increased from about $720 to $1,850 about 260%. It takes 2.6 of todays dollars to purchase as much gold as could be purchased with $1 just three years ago. Thats evidence of serious inflation. And yet, for most of those three years, the economy has been in a recession or at least stagnant. These additional contractions only heighten the confusion. Are we in a period of inflation or deflation? The answer is Yes. Or, more properly, Both. As measured by our fiat, paper currency, were in a period of inflation. As measured by paper dollars, prices are tending to rise; purchasing power of the fiat dollar is falling towards its intrinsic worth. As measured by gold (real money), we are in a period of deflation. As measured by gold, prices are tending to fall; purchasing power of gold is rising. And therein lies an explanation for much of our previous confusion. Remember, over the past 70 years, the purchasing power of the dollar has fallen by about 98%. Thats not just evidence of persistent inflationits evidence of governmental intent. The government wants inflation. Why? Because: 1) Inflation stimulates the economy. Inflation diminishes the dollars purchasing power and produces cheaper dollars. Lured by the promise of inflation, the public borrows and spends like drunken sailors because they expect to be able to repay their debts with cheaper dollars. Result? The economy is stimulated to go faster and grow. 2) Inflation reduces the national debt. Cheaper dollars allow the gov-co to repudiate part of the national debt. If the gov-co borrows $1 trillion and then causes 50% inflation, it can repay the $1 trillion but that $1 trillion will have only two-thirds the purchasing power of the $1 trillion that was originally borrowed. By means of inflation, government can reduce the real debt and rob its creditors. How does gov-co cause inflation? The obvious answer is by printing fiat currency. By increasing the supply of currency in circulation, the gov-co causes inflation and thereby manipulates the people into borrowing and spending more. In the aftermath of the A.D. 2008 crash the Federal Reserve secretly issued $16 trillion (about 20 times the size of the simultaneous $800 billion QE1) in newly-printed dollars to major US banks and corporations and even foreign banks. Thats inflation. A less obvious answer is by deficit financing. When gov-co borrows money (essentially from future generations) to spend today, gov-co is adding to the money supply, inflating the currency, and (hopefully) stimulating the economy. QE1 and QE2 are examples of deficit financing intended to stimulate the economy. Unfortunately, QEs 1 & 2 didnt work as well as hoped. The economy largely shrugged off all that stimulus (manipulation) and remained moribund. Gov-co was undeterred. Gov-co intends to cause inflation. QE3 cometh. But the lesson of QEs 1 & 2 (and of the Feds secret $16 trillion gift to banks and corporations) is that the competing forces of deflation have, so far, been too powerful to be quelled. The recession persists. If deflation is not yet here, it seems to be coming.

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 Which brings me back to goldwhich is deflating and growing more valuable. A house that sold for $250,000 in A.D. 2000 might also have been purchased for about 900 ounces of gold. That same house, today, might sell for $200,000 (evidence of deflation in fiat currency) or 110 ounces of gold. Admittedly, relative to houses, the purchasing power of the paper dollar has increased by 20% but the purchasing power of gold has increased almost 900%. Gold has deflated (increased in purchasing power) hugely while the paper dollar has generally inflated (lost purchasing power). Thus, we can simultaneously have general inflation and general deflation depending on: 1) whichever definitions of inflation and deflation we choose to use; and, 2) whether we measure inflation/deflation with paper currency or real money. Inflation of the one (fiat currency) will translate into deflation of the other (gold & silver). In theory, we might start with just two of the alternative definitions of inflation and calculate two different results as to what the rate of inflation is. But if we calculated each definition based on gold and then also on fiat currency, the result could be four different conclusions as to the real rate of inflation. If we started with three definitions, or four, and calculated each using both gold and then fiat currency, we could have six or eight different conclusions as to the real rate of inflation. Depending on the definition and the form of money relied on, it should be possible to take the same numbers and get a multitude of different conclusions ranging from significant deflation to significant inflation. Insofar as knowing the inflation rate is germane to our investment decisions, and given the massive confusion that surrounds the definitions of inflation, is it possible to objectively determine the current rate of inflation with some precision? Probably not. To calculate inflation, you must first make a couple of subjective choices as to your preferred definition and whether you want to apply that definition based on fiat currency or gold. But if objective precision is unlikely, fundamental principles remain that may help us understand whether we are in inflation or deflation, or approaching one or the other: First, the fiat currencies of the world are dying. This means fiat currency inflation and gold deflation are certain to persist as long-term trends until the fiat currencies actually die. Second, gold isnt merely increasing in price as a commodity reflecting the diminishing purchasing power of the fiat dollar. Golds purchasing power is also increasing as more people demand gold as real money and as a replacement for fiat currencies. This implies that the longterm rise in the purchasing power of gold will be even greater than the inflationary fall for fiat dollars. If so, gold wont merely preserve your wealthit should increase it. Third, while the U.S. economy might hold together for several more years, there is an array of forces (unpayable debt, loss of world reserve currency status, loss of AAA credit rating, loss of industries shipped overseas, etc.) that virtually guarantee that a serious economic decline is inevitable and close. If we slip into a depression, well see deflation wherein prices will fall and cash will be king. But which cash will be king? Fiat dollars or gold and silver coin? The answer seems obvious. While we may not be able to precisely calculate current rates of inflation, there is strong evidence to suggest that gold is already deflating (growing more valuable) and the economy is such that gold should deflate even more over the next several years. So long as that evidence remains, gold is the way to go

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but not limited to the American Gold, Silver, Platinum Eagle and numismatic products including rare, investment and circulated coins. Silver dollars, silver bars, rounds are on hand for the silver investor. Foreign gold is also available. Call for information regarding your precious metal gold and silver IRA. 1 800 375 4188

COMMODITIES The DOE reports crude oil inventories rose 4.233 m/b, distillates rose 2.45 m/b and gasoline fell 3.51 m/b. EUROPE The latest Franco-German strategy to counter the euro debt crisis stressed ideas already in the works, shunning bolder steps investors were seeking to calm markets. German Chancellor Angela Merkel and French President Nicolas Sarkozy ruled out steps such as the issuance of euro bonds or expanding the bailout fund. They backed a plan being drawn up for national balanced-budget amendments and reheated one rejected last year for a financial-transaction tax. They called for the 17 euro leaders to hold two summits a year, the same number of times they have already met in 2011. Germanys Opponents of Common Bond Provoked by U.S. Downgrade: Euro Credit Futures on Germanys benchmark DAX Index plunged as much as 7.1 percent today as a cascade of trades pushed them down by 100 points in less than two seconds. Denmarks regional banks are cutting lending and selling off assets to generate cash needed to escape an international funding wall as policy makers grope for measures to boost liquidity. [2nd Greek bailout coming apart] Austria, the Netherlands and Slovakia said Thursday they want collateral on loans to Greece after Finland secured a commitment, raising question marks over a second bailout agreed for Athens last month. "With more of Greece's euro zone partners asking for collateral for their contribution to the second rescue package, the available pool of money becomes smaller, rendering the success of the second package more difficult," said Theodore Krintas, head of wealth management at Attica Bank in Greece. ENGLAND Bank of England policy makers Spencer Dale and Martin Weale ended their push for an interest- rate increase this month as the euro-area crisis and signs of a global economic cooling threatened to hurt growth in Britain. The nine-member Monetary Policy Committee voted unanimously to hold the key rate at a record-low 0.5 percent, according to minutes of the Aug. 3-4 meeting published today in London. Adam Posen kept up his vote to expand stimulus by increasing the bond-purchase program by 50 billion pounds ($81.8 billion).

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The cost of dinner for two in London has surged 11 percent over the past year -- the biggest gain in more than two decades -- and now exceeds 90 pounds ($148) for the first time, the publishers of a restaurant guide said today. The price is based on the average cost of a three-course meal, including wine, coffee and service at the 1,900 venues listed in Hardens London Restaurants 2012. Dinner for one sneaks in at a handy 45.01 pounds, they said. In the 21 years we have followed the restaurant scene, weve never seen annual inflation anywhere near 10 percent, Peter Harden, co-editor of the guide, said today in an e-mailed release. He blamed higher food costs and a tax increase. The standard rate of Value Added Tax jumped to 20 percent from 17.5 percent on Jan. 4. Excluding VAT, prices have gone up by 4.5 percent in each of the past two years, Harden said. The number of restaurants opening over the past 12 months fell to 107 from 140. Thats the lowest since 2000, when the figure was 102. There were 72 closures, in the lower half of the range -- 64 to 87 -- that has prevailed each year since 2005. Harden and his brother Richard name their Top 10 favorite new establishments (in alphabetical order) as: Brawn; Les Deux Salons; Dinner by Heston Blumenthal; Galoupet; Hedone; Medlar; Pollen Street Social; Riding House Cafe; Roganic; Yashin. Chef Jason Athertons Pollen Street Social was last week named Londons best new restaurant by The Good Food Guide 2012, followed by Dinner by Heston Blumenthal. Hardens London Restaurants 2012 will be published on Sept. 1. Britains coalition government will go ahead with index-linked rail-fare increases that were boosted by unexpectedly high inflation, Transport Minister Theresa Villiers said today. The price rise, which will average 8 percent for regulated fares, is vital if Britain is to fund 2,700 new railcars and projects such as Crossrail and the Thameslink upgrade in London, Villiers said on BBC Radio 4s Today program. More people are forecast to travel by rail even after the fare hike, which was triggered by a higher-than-predicted inflation rate, she said, adding that an improvement in efficiency is whats required to rein in ticket prices. The real solution is that we need to get the cost of running the railways down, she said. I think its essential that we deliver these cost savings. U.K. retail sales rose less than economists forecast in July as demand at clothes and household- goods stores dropped. Sales including fuel rose 0.2 percent from June, when they increased a revised 0.8 percent, the Office for National Statistics said today in London. The median forecast of 19 economists in a Bloomberg News survey was for a 0.3 percent increase in July. On the year, sales were unchanged. HEALTH Herbalist Wendy Wilson TYRANNY BRINGS TENSION In the 20th Century modern civilization has had to deal with such tyrants as Adolph Hitler and Saddam Hussein. In the not-so-distant past there was also Joseph Stalin and Pol Pot. Most tyrants once in power will purge the independent thinkers and achievers, will re-write history, change the laws and rise up a new generation of followers - you see this now under Obama. Tyrants typically like to rule through terror and encourage paranoia.

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Misinformation works in their favor to keep the people guessing and off balance in order to put into place their plan to micromanage your life. It is like having a huge narcissist on your shoulder. To understand more you can read Sam Vaknins book Malignant Self Love- Narcissism Revisited or visit http://samvak.tripod.com. Most tyrants are narcissistic. America is trying to survive under tyrannical rule when it is a nation of independent thinkers and achievers breed to secure the blessings of liberty. In our Constitutional blood is the DNA of freedom. Oppression just doesnt fit like a square peg in a round hole. Most Americans are aware and are under extreme tension and pressure to help purge their country of a disease called tyranny. APATHY America has another hurtle to conquer and it is apathy. God shows us how to conquer apathy. He calls it eye salve to remove the blinders. The eye salve is the word of God. America will be victorious over all of its enemies when the people seek after and insist on the moral values of God. When the human conscious is seared it is scarred, the people dont hear Gods voice and cease to have a conscience. It is sort of like having a spiritual lobotomy. The result is that people just dont care. America needs to become spiritually strong again. Spiritual strength comes from spending time in the word of God. Spiritual eyes come after seeking the ways of God. If America sought after the ways of God and not the ways of the world, it would be like a diamond on a hill. What are the ways of the world? The Bible is clear in I John 2:15-17 where it explains these are the symptoms of the world; lust of the flesh, lust of the eyes and pride of life. What does this mean? The lust of the flesh is everything that is lewd. Lust of the eyes is greed. The pride of life is bitterness. I dont like to think of the people of our nation as lewd, greedy and bitter but we are and dont have to be. TV shows such as Desperate Housewives, Glee and others exhibit lewd and shallow behavior. Our national debt exhibits our materialism. Our apathy exhibits our bitterness and apparent unwillingness to change. FEAR Weak leadership often leads to tyranny. Tyrants tend to overestimate their power to control events and the people tend to overestimate the tyrants abilities. And tyrants often fear the people they oppress. If Americans seek Gods face and change course, Obama will have more to fear than just the people. The Bible encourages us to stand and fight evil. In righteousness we are to storm the gates of hell. Do you know what the gates of hell are? The Bible is clear in explaining that at the gates of the city are where the council of men rule. At the gates the magistrates and men of power gathered and ruled communities. Therefore, this makes world government the gates of hell. For here you will find the principalities, powers, rulers of darkness of the world and spiritual wickedness in high places. Here is where the believer battles not against the flesh but against the principalities of darkness. Disobedience to tyranny IS obedience to God. PREPARE If we are going to fight this evil we will need to take special care of ourselves spiritually and physically. Letting anxiety ruin our nervous system and prevent sleep is not helpful. Changes in the lifestyle will go a long way in empowering you physically and mentally. Prayer is going to be very important. We must also encourage one another. Positive music and aromatherapy will lift our mood. Herbs packed with powerful nutrition will offer system support and help us get a good nights sleep. Massage will help remove tension. If you cant afford to get a massage, try vigorous exercise it is excellent for releasing anxiety and energy that builds up in the muscles creating tension. When we get tense it slows circulation and the delivery of nutrition, oxygen, hormones and energy all over the

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body including the brain. When we are tense, we struggle to focus and make sound decisions. The body is challenged to work properly under such conditions. After the exercise workout do some skin brushing in the shower with a soft brush or loofah sponge to stimulate the lymphatic system (always brush up towards the heart). This is a mini massage for the glands and immune system. Add a shower massage water head to your bathroom for more tension reduction, which is cheaper than a psychiatrist. Also, try to watch the consumption of red meat, which can irritate the central nervous system. Minimize the red meats to once or twice weekly and use other protein foods such as chicken, turkey or fish. These other protein foods will help to minimize anxiety via amino acids, which affect the brain chemistry. Foods that contain high amounts of amino acids are; almonds, chicken, nutritional yeast and spirulina. These foods will help the neurotransmitters, nerve function, improve sleep and help with anxiety and depression. FOOD THERAPY Foods that will help calm the system and easy depression are; turkey, wheat germ, carrots, celery and almonds. Foods which assist the brains neurotransmitters and help us deal with stress are; wheat germ, olives, avocados, chicken, almonds and walnuts. Foods to help improve sleep, reduce pain, balance appetite and lift mood are; spirulina, nutritional yeast, soy, pinto and mung beans, lentils, chicken and fish. Also, add more fiber to the diet with whole grains, fruits and vegetables. LAYER THE HERBS In addition to changing the lifestyle by beefing up the diet with healthier foods and limiting the red meats and sugar, we can add some of Gods powerful herbs to get us to our goal faster. The ginseng herbs (American and Siberian) are excellent system support herbs and help lift our mood. Valerian root can be added to the ginseng herbs to remove tension from the nerves. Lobelia herb can be added also to remove tension from the muscles. Real hot cayenne will also help us handle stress better. There are many herbs you can use including herbs to help balance hormones, blood pressure and cholesterol to improve overall function. LOOK UP We have our marching orders; we are too look up and ask God for help in this critical time in our nations history. We are to seek after the ways of God and we are to encourage one another. We will need stamina and good health and are to look after healthy eating. We are to look up Apothecary Herbs on the Internet http://www.thepowerherbs.com for professional strength Valerian Root tincture, Relaxation Formula (lobelia tincture), American or Siberian Ginseng tinctures, Circulation Formula, Male Hormone Formula, Female Formulas, Brain Concentrate tincture and Body Foundation Food Mix (nutritional yeast, spirulaina, protein and amino acids). Or call Apothecary Herbs and ask for a free product catalog toll free 866-2293663, International 803-746-0219, where your healthcare options just became endless. APOTHECARY HERBS ANNUAL STOCK-UP SPECIAL EXTENDED TO 8/31/11 Some of you have had difficulty with our shopping cart allowing the stock up special items to be in the cart so we have fixed the problem and will extend the discounts through the end of August. Fall and winter will be here before we know it and nows the time to stock-up on your immune boosting herbal formulas at Apothecary Herbs and up to SAVE 30% (restrictions apply). Call now 866-229-3663, International 803-746-0219 or http://www.thepowerherbs.com. Hurry! Offer expires 8/31/2011.

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PURE ENERGY Pure energy is organic and instantly absorbed transporting nutrition to every cell in your body. It is a super food for the body to repair, build and fortify itself. Where do you get it? Its called Body Foundation Food Mix and is at Apothecary Herbs 866-2293663, International 803-746-0219 http://www.thepowerherbs.com. This pure energy food source is so efficient; you wont feel hungry between meals and can safely lose weight. SAVE ON THIS ITEM IN THE STOCK-UP SPECIAL NOW THROUGH 8/31/11. MALE & FEMALE ORGAN CLEANSES KITS Dont give disease a foothold. You will have the power to cleanse the bowel, urinary, liver, gall bladder and blood system with this cleanse package. For added cleansing, ask about how you can upgrade your order to include the prostate cleanse for men or the Kidney/Bladder cleanse for females. Go to http://www.thepowerherbs.com or call their 24-hour live customer service line 866229-3663, International 803-746-0219. NEW MALE HORMONE FORMULA NOW AVAILABLE Apothecary Herbs brand new formula to help balance male hormones Male Hormone Formula. Call 866-229-3663, International 803-746-0219 http://www.thepowerhergs.com THE POWER HERBS e-BOOK By popular demand The Power Herbs e-book is available with symptom/herb reference guide, information on organ cleansing and how to make your own herbal tinctures plus a whole lot more. Go to http://www.thepowerherbs.com and click on The Power Herb book cover on the right side of the home page to order. You must have email to order and receive the e-book download version of The Power Herb book for just $14.99. At this time, we do not offer this title in hard copy. SAVE ON THIS ITEM IN THE STOCK-UP SPECIAL $12.75 WHEN YOU ORDER 2 OR MORE. NOW THROUGH 8/31/11. MAKES A GREAT GIFT! Extra Strength Pain Relief & Emergency Heart Attack Pack Apothecary Herbs has the only double strength tincture on the market Extra Strength Pain Relief. Most companies wont take the time and expense to make a double tincture, but they enter the system in 60-seconds and work for 12-hours for just $25.95. If you cant get to an emergency room or medical doctor in time you will want the five powerful formulas in the Heart Attack Pack for just $99.00 (STOCK UP SPECIAL PRICE $84.15). Call Apothecary Herbs 866-229-3663, International 803-746-0219or order online at http://www.thepowerherbs.com. PROSTATE KIT THAT WORKS! Go to Apothecary Herbs http://www.thepowerherbs.com and type in Prostate in the search box or for more information or call 866-229-3663, International 803-746-0219. ONE-YEAR SUPPLY OF HERBAL MEDICNE (shelf life 10 to 15 years) See Apothecary Herbs One Year Supply of Herbal Medicine at http://www.thepowerherbs.com or call 866-229-3663, 803-746-0219. Call for a customized year supply or to set up installment payment for this package. WENDY WILSONS HERB TALK LIVE RADIO SHOW & ARCHIVES - Herb Talk Live is Internet streamed on www.gcnlive.com every Saturday 7-8:00 a.m. EST. Weekly shortwave; Thursday 4:00 p.m. rebroadcasts at 11:00 p.m. on WBCQ 7.415, American Voice

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Radio (pod cast, DSL, satellite) Tuesday & Thursday 7:00-8:00 p.m. EST. Radio show archives at http://www.thepowerherbs.com. Be well Herbalist, Wendy Wilson GOJI BERRIES Wild crafted Gobi berries full of antioxidants are now available in the 16 oz. size at Apothecary Herbs. Choose between 8 oz. for just $15.50 and the 16 oz. for just $25.80. 866-229-3663, International 803-746-0219 http://www.thepowerherbs.com OUR VERSION OF THE ECONOMIC STIMULUS Apothecary Herbs is offering 15% off your total order before shipping when you print off your shopping cart order online or fill out the catalog order form and mail in your order with your check or money order. Get prepared, healthy and save what could be better than that? International orders can send an International Money Order and save 15% before shipping. Apothecary Herbs, 1646 West Hwy 160, Ste. 8148, Fort Mill, SC 29708 USA. US LETTERS From a Fellow Subscriber:

Hello Mr. CHAPMAN. I'm writing in from Luzerne County, Northeastern Pennsylvania, home of hard coal country and hard-core political corruption. Former Luzerne County Court of Common Pleas Judge Mark A. CIAVARELLA was sentenced to 28 years in Federal Prison, after being convicted in a jury trial in February 2011. He was convicted of 12 counts in a federal RICO case that included racketeering, mail fraud, money laundering, and tax evasion. This amounts to nearly a life sentence for the 61-yearold former judge. This was related to his acceptance of nearly $1 million dollars from a developer and builder of juvenile detention facilities. As a result of the large number of juveniles that he incarcerated for minor infractions, the PA State Supreme Court vacated nearly 5,000 juvenile cases that CIAVARELLA heard. He had initially reached a plea agreement with federal prosecutors for that would have totaled 87 months in prison. The federal judge rejected the plea agreement after CIAVARELLA failed to accept responsibility for his actions, and his repeated comments to the press regarding the federal prosecutors and the charges that were leveled. A coconspirator, former Judge Michael CONAHAN is awaiting sentencing for his involvement in this matter. Some experts have said this by far the worst judicial corruption case in the history of Pennsylvania, and possibly the worst case of judicial corruption in the history of the United States. Approximately 30 others individuals have been indicted and sentenced in the ongoing federal corruption probe, including another former judge, Michael J. TOOLE JR. This sentencing also made the headline in the August 12, 2011 (Friday) issue of the Philadelphia Inquirer Newspaper. Additional articles on this matter could be found at the local newspapers, www.timesleader.com <http://www.timesleader.com> and www.citizensvoice.com http://www.citizensvoice.com
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Hi Bob, Yesterday while in NYC at the Union Square Farmers Market yesterday I sat to enjoy the ambiance of the fresh local vendors and their harvest. The farmers are a colorful salvation against the backdrop of the concrete jungle and the market is usually quite crowed. Yesterday due to the rain it was sparse attendance. I saw what seemed to be a special forces unit of police at the south end of the Square and the next thing I knew a woman on a bike with a straw basket filled with vegetables and flowers came walking her bike. She was almost off the market area, within about five feet of the street and clearly out of the way of pedestrians. Well guess what, she mounted right in front of the policeman who promptly stopped her, detained her, asked for ID, her date of birth, etc. She did get a ticket. For the crime of having a bike and vegetables!!!! She couldn't understand what was happening to her. This is the new Third World America as Max Keiser has put it. I hope this wakes this woman up to the total police state the US is.... and oh yes I will be oh so thrilled when the young officer never gets his pension or social security, and loses his home to foreclosure.....as he propels the tapeworm economy forward....Karma happens dear officer, especially NOW....ID please......
From a Subscriber: Hi Bob-Rumor has it that seal team 6 played for suckers they figured it out-so they had to gosomething along the following linesST-6 was sent to kill 1 of only 2 remaining Bin Laden body doublesnot the real Bin Laden who has been in a----- weekend at Bernies state for yearssomehow ST-6 figured some or all of the aboveand so the big boys knew that it was only a matter of time before ST-6 would start talking about some or all of the above along the linesof completely baseless washroom wall type rumors that they had bagged a--- doppelganger---------and the big boys could not risk thatso they gave them a big send offrumor has it that whoever did the ST-6 snuff jobare now themselves dead men walkingbecause they now also know too muchand will very soon be joining their ST-6 victims. From a Subscriber: This says it all, no matter your politics.. Alan Simpson, Senator from Wyoming, Co-Chair of Obama's deficit commission, calls senior citizens the Greediest Generation as he compared "Social Security" to a Milk Cow with 310 million teats. August, 2010. Here's a response in a letter from a unknown farmer in Montana.... I think he is a little ticked off! He also tells it like it is ! ------------------------------------------------------------------------------------------------"Hey Alan, let's get a few things straight.. 1. As a career politician, you have been on the public tit for FIFTY YEARS.

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2.. I have been paying Social Security taxes for 48 YEARS (since I was 15 years old. I am now 63). 3 My Social Security payments, and those of millions of other Americans, were safely tucked away in an interest bearing account for decades until you political pukes decided to raid the account and give OUR money to a bunch of zero ambition losers in return for votes, thus bankrupting the system and turning Social Security into a Ponzi scheme that would have made Bernie Madoff proud. 4. Recently, just like Lucy & Charlie Brown, you and your ilk pulled the proverbial football away from millions of American seniors nearing retirement and moved the goalposts for full retirement from age 65 to age 67. NOW, you and your shill commission are proposing to move the goalposts YET AGAIN. 5. I, and millions of other Americans, have been paying into Medicare from Day One, and now you morons propose to change the rules of the game.. Why? Because you idiots mismanaged other parts of the economy to such an extent that you need to steal money from Medicare to pay the bills. 6. I, and millions of other Americans, have been paying income taxes our entire lives, and now you propose to increase our taxes yet again. Why? Because you incompetent bastards spent our money so profligately that you just kept on spending even after you ran out of money. Now, you come to the American taxpayers and say you need more to pay off YOUR debt. ~~~~~~~~~~~~~~~~~~ To add insult to injury, you label us "greedy" for calling "bullshit" on your incompetence. Well, Captain Bullshit, I have a few questions for YOU. 1. How much money have you earned from the American taxpayers during your pathetic 50-year political career? 2. At what age did you retire from your pathetic political career, and how much are you receiving in annual retirement benefits from the American taxpayers? 3. How much do you pay for YOUR government provided health insurance? 4. What cuts in YOUR retirement and healthcare benefits are you proposing in your disgusting deficit reduction proposal, or, as usual, have you exempted yourself and your political cronies? It is you, Captain Bullshit, and your political co-conspirators called Congress who are the "greedy" ones. It is you and your fellow nutcases who have bankrupted America and stolen the American dream from millions of loyal, patriotic taxpayers. And for what? Votes. That's right,

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sir. You and yours have bankrupted America for the sole purpose of advancing your pathetic political careers. You know it, we know it, and you know that we know it. And you can take that to the bank, you miserable ASS. If you like the way things are in America, delete this. If you agree with what a fellow citizen says, PASS IT ON!!! From a Subscriber:

You may want to post this on your letter or you may have...I was listening to Rush today and a lady called up and said that on page 56 (or was it 57?) of Obama's health bill there is a paragraph that says if your insurance or you can't pay off the rest of your health care expenses, hospitals and those related entities to hospitals can legally go into your 401k's and bank account's and take your money to pay off the rest of the bills. Rush said this is true.
EUROPE LETTERS From a Subscriber: News update from Greek Antena TV Hi Bob Here is the latest news of interest, August 20th the small group (little) TROYKA is expected to come in, by the end of the month and they expect big TROYKA, that would be the big brass, to calculate and appraise values, implementation is the real trick. Will see what all this visitors will accomplish, in the mean time the administration is planning big reductions in salaries and pensions, Anthony Samaras of the opposition party Nea Dimocratia, put them on notice that, a vote for such a cut will require 180 vouleftes (congressional votes) to be legal, which they do not have (they have 155 votes). Hopefully this will force elections. Best regards, From a Subscriber: The Serbs Know! Chemtrails & GMO Food: Nikola Aleksic http://www.youtube.com/watch?v=VAUcB7sIYEU Nikola Aleksic, Director of the Ecological Movement of Novi Sad, issues a stern warning to Serbian president Boris Tadic to stop importing food based upon Genetically Modified Organisms (GMO) and stop the chemtrail spraying (geoengineering), or he will call and personally lead the people of Serbia to the streets. "You can be sure that, I, Nikola Aleksic, will keep my word -- even at the cost of my own life." ........ full transcript @ consciouslifenews(dot)com ENGLAND LETTERS From a Subscriber:

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Bob It's always the poor that suffer, this advert that comes on TV in the UK makes me really angry, https://www.wonga.com/ when a company is charging over 4,000% interest, yes that is not a typo, 4k% it makes my blood boil. I have written to our TV advertising dept and sent nasty email to this company too, but they don't care. I am extremely angry with out advertising people over this one. It doesn't end there, they now have lenders for your car and giving advance cheques in exchange for your wages. US LINKS Is the SEC Covering Up Wall Street Crimes? http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes20110817 How Wall Street Fleeces America by Stephen Lendman http://www.claritypress.com/Lendman.html Hacker Mitnick Duped Corporate Cyber-Cops, Cracked Wiretaps http://www.bloomberg.com/news/2011-08-12/hacker-mitnick-duped-corporate-cybercops-cracked-wiretaps.html Calm Before Black Swan - Midnight Contemplations On Public Enemy N1 http://www.youtube.com/watch?v=0oLwjDsffzU&amp;feature=player_embedded#at=22 THE EMPEROR WEARS NO CLOTHES! Ratigan Spells-It-Out! http://www.youtube.com/watch?v=L8xJpJBOhPw&feature=related But America IS A Police State by Steven Greenhut [Some of law enforcement are obviously psyopaths. http://lewrockwell.com/greenhut/greenhut66.1.html SMART METERS: No Federal Mandate http://ppjg.wordpress.com/2011/08/15/smart-meters-no-federal-mandate/ Ron Paul Out With New Ad Taking Aim At Bachmann, Romney, Perry & Obama http://www.youtube.com/watch?v=ncI2UjOi9XU The Death Penalty Is a Miscarriage of Justice: It Should Be Abolished http://lewrockwell.com/whitehead/whitehead34.1.html 99ers say enough is enough http://www.youtube.com/watch?v=79RFghjels0 Rick Perry's NAFTA Superhighway Problem http://townhall.com/columnists/rachelalexander/2011/08/12/rick_perrys_nafta_superhigh way_problem 34

IS Ben Bernanke a 'traitor'? Ron Paul praises Fed Reserve expos as 'heck of a journey through time and mind' http://www.wnd.com/index.php?fa=PAGE.view&pageId=124844 Ron Paul: I'm Not A Fringe Candidate; Calls U.S. "Warmongers" http://www.realclearpolitics.com/video/2011/06/20/ron_paul_im_not_a_fringe_candidate _calls_us_warmongers.html Ron Paul: Stop Runaway Federal Spending! http://www.ronpaul.com/2011-08-15/ron-paul-stop-runaway-federal-spending/ Why the American media hate and fear Ron Paul http://blogs.telegraph.co.uk/news/timstanley/100101240/why-the-american-media-hateand-fear-ron-paul/ The Assassination of RFK http://www.youtube.com/watch?v=bEIj-xwxQgo A dangerous Movie - The Franklin Scandal | Nick Bryant http://www.youtube.com/watch?v=1ttMmU_jwcA Child Protective Services Predators and Corruption - Senator Nancy Schaefer http://www.youtube.com/watch?v=HpleMebFXiM Disapproval of Congress Hits All Time High of 84% http://www.infowars.com/disapproval-of-congress-hits-all-time-high-of-84/ New Report Confirms The Army Approved Up To 5 Million Pieces Of Worthless Body Armor http://www.businessinsider.com/army-approves-bad-body-armor-2011-8#comment-form America's 14 Most Ready to Riot Cities http://www.opednews.com/articles/3/America-s-14-Most-Ready-to-by-Chaz-Valenza110811-723.html Florida Law Eliminates Gun Restrictions http://www.personalliberty.com/news/florida-law-eliminates-gun-restrictions-800576620/ 49 State Attorneys General Sanctifying Foreclosure Fraud of Wall Street- Settlementhttp://sherriequestioningall.blogspot.com/2011/08/49-state-attorney-generals-goingto.html Industry's Past-Due Mortgages Climb Above 6.5 Million http://www.dsnews.com/articles/industrys-past-due-mortgages-climb-above-65-million2011-08-16 Daily Rogue State Israeli Lawlessness - by Stephen Lendman http://sjlendman.blogspot.com/2011/08/daily-rogue-state-israeli-lawlessness.html

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Falsified Major Media Reports on Libya - by Stephen Lendman http://sjlendman.blogspot.com/2011/08/falsified-major-media-reports-on-libya.html IDPA Practice with AirSoft: Draw, Fire & Follow Up Shots with CED8000 http://www.youtube.com/watch?v=tD2s14JBb_E&amp;feature=feedu Justice is reviewing S&P work on loans Rating of mortgage securities scrutinized; investigation began before US downgrade [We have been writing about this for over 3 years, will something finally be done about their criminal activity?] http://www.boston.com/business/articles/2011/08/18/justice_reviewing_sp_rating_of_mo rtgage_securities/ 4 Mass. banks get $18m from US http://www.boston.com/business/articles/2011/08/18/4_massachusetts_banks_get_18m __from_us/ Wholesale prices in US outdo July projections Pharmaceuticals, tobacco, trucks lead 0.2% advance http://www.boston.com/business/articles/2011/08/18/wholesale_prices_in_us_climbed_ more_than_forecast_in_july/ Thoughts about the Catfood II Super Congress Appointments http://fdlaction.firedoglake.com/2011/08/10/thoughts-about-the-catfood-ii-supercongress-appointments/ Rick Perry: Extremist White America's Evangelical Hope - by Stephen Lendman http://sjlendman.blogspot.com/2011/08/rick-perry-extremist-white-americas.html Not-for-Profit College Board Gets Rich on Fees http://www.bloomberg.com/news/2011-08-18/not-for-profit-college-board-getting-rich-asfees-hit-students.html Jesse Ventura's 'FEMA Camp' http://lewrockwell.com/rep2/jesse-ventura-fema-camp.html Ominous Parallels By Walter E. Williams http://lewrockwell.com/williams-w/w-williams93.1.html TSA cause yet more outrage by confiscating pregnant woman's insulin and ice packs http://www.dailymail.co.uk/news/article-1357012/TSA-causes-outrage-confiscatingpregnant-womans-insulin-ice-packs.html#ixzz1US5MrYFS Governor Perry's trip to Israel in question http://weareaustin.com/fulltext?nxd_id=38942&nxd_85116_start=15 Foreclosure Case Against MERS Reaches Supreme Court http://dailybail.com/home/foreclosure-case-against-mers-reaches-supreme-court.html Pentagon to cut pensions for veterans

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http://rt.com/usa/news/pentagon-cut-retirement-pension/ OUTRAGE - Goldman VP Peter Haller Changed Name, Now a Top Congressional Staffer To Darrell Issa Working To Ease Dodd-Frank Derivatives Requirements On Goldman Sachs http://dailybail.com/home/outrage-goldman-vp-peter-haller-changed-name-now-a-topcongr.html MOODY'S ANALYST BREAKS SILENCE: Says Ratings Agency Rotten To Core With Conflicts, Corruption, And Greed http://www.businessinsider.com/moodys-analyst-conflicts-corruption-and-greed-20118?op=#ixzz1VV8RAr3C Eretz Yisrael: Lawless, Corrupt and Dysfunctional - by Stephen Lendman http://sjlendman.blogspot.com/2011/08/eretz-yisrael-lawless-corrupt-and.html RIP: America's Anti-War Movement - by Stephen Lendman http://sjlendman.blogspot.com/2011/08/rip-americas-anti-war-movement.html Max on Alex Jones http://maxkeiser.com/2011/08/19/max-on-alex-jones/#more-34679 Shoppers will see higher prices for back-to-school shopping, but stores aim to disguise them http://www.washingtonpost.com/business/economy/shoppers-will-see-higher-prices-forback-to-school-shopping-but-stores-aim-to-disguisethem/2011/08/19/gIQAN4MuOJ_story.html Retailers Raise Prices to Offset U.S. Labor Costs http://www.bloomberg.com/news/2011-08-19/retailers-restaurants-raise-prices-to-offsetu-s-labor-costs.html US will focus on deporting criminals Obama move aims to free up courts; some immigrants may stay for review http://www.boston.com/news/nation/articles/2011/08/19/us_will_focus_on_deporting_cri minals/ Perry Made More Than a Million on Real Estate [Another sweetheart deal.] http://www.bloomberg.com/news/2011-08-19/perry-made-more-than-a-million-on-realestate-while-in-office.html Is the Fed Treasonous? by Thomas J. DiLorenzo http://lewrockwell.com/dilorenzo/dilorenzo212.html The "Elite" 12 Unconstitutional "Super Congress" have already been Bought and Sold have gotten 64.5 Million from Wall Street and Special Interest Groups http://sherriequestioningall.blogspot.com/2011/08/elite-12-unconstitutional-super.html Ron Paul Interview With Cnn's Wolf Blitzer 08\18\ 2011 http://1newsjunkie.blogspot.com/2011/08/ron-paul-interview-with-cnns-wolf.html

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Pentagon to cut pensions for veterans http://www.federaljack.com/?p=97778 Ron Paul This Speech Gave Me Chills http://www.youtube.com/watch?v=V36MT5lAMrc&feature=related How to 'fix' a market http://www.nypost.com/p/news/business/how_to_fix_market_KtRAwdgyfU0I6LfpgCx6fI Fed Up: A Texas Bank Is Calling It Quits http://online.wsj.com/article/SB10001424053111904480904576498442951766826.html EXCLUSIVE: Analysis of Financial Terrorism in America: Over 1 Million Deaths Annually, 62 Million People With Zero Net Worth, As the Economic Elite Make Off With $46 Trillion http://ampedstatus.org/exclusive-analysis-of-financial-terrorism-in-america-over-1million-deaths-annually-62-million-people-with-zero-net-worth-as-the-economic-elitemake-off-with-46-trillion/ Gov't considers turning foreclosures into rentals [We predicted this 8 years ago. It is the nationalization of housing. Bob] http://old.news.yahoo.com/s/ap/20110810/ap_on_bi_ge/us_government_home_rentals War game test run for permanent US base http://www.couriermail.com.au/ipad/war-game-test-run-for-permanent-us-base/storyfn6ck45n-1226102333349 Whistleblower Claims Massive Pattern Of Document Destruction At The SEC http://www.businessinsider.com/sec-attorney-claims-the-agency-destroyed-thousandsof-investigations-involving-banks-hedge-funds-2011-8 MOODY'S ANALYST BREAKS SILENCE: Says Ratings Agency Rotten To Core With Conflicts, Corruption, And Greed http://www.businessinsider.com/moodys-analyst-conflicts-corruption-and-greed-2011-8 Flash Mobs: 5 Things to Know http://www.ibtimes.com/articles/199419/20110817/flash-mob-violence-usphiladelphia.htm Titanic Battle or Insider Trading? The S&P Downgrade and the Bilderbergers: All Part of the Plan? By Ellen Brown http://www.globalresearch.ca/index.php?context=va&aid=26054 Financial world dominated by a few deep pockets Economic superentity controls more than one-third of global wealth http://www.sciencenews.org/view/generic/id/333389/title/Financial_world_dominated_by _a_few_deep_pockets GOLD LINKS

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The Italian Problem http://www.youtube.com/watch?v=79RFghjels0 Lew Rockwell talks to RT about Tricky Dicks monetary crime and Ron Pauls solution http://www.lewrockwell.com/lewrockwell-show/2011/08/16/216-nixon-gold-and-ron-paul/ Recent Gold Hedging Activity http://lewrockwell.com/orig12/dashkov2.1.1.html CANADA LINKS 60% of Toronto arrests lead to strip searches http://www.cbc.ca/news/canada/toronto/story/2011/08/17/police-strip-searche.html EUROPE LINKS Google-Server in Europa vor US-Regierung nicht sicher http://www.wiwo.de/politik-weltwirtschaft/google-server-in-europa-vor-us-regierung-nichtsicher-476338/ In euro-zone crisis, German leader Angela Merkels options are limited http://www.washingtonpost.com/business/economy/in-euro-zone-crisis-germanleadership-is-fatigued-by-reform/2011/08/17/gIQA6PXoLJ_story.html Spanish protesters take to the streets against the Pope http://www.theolivepress.es/spain-news/2011/08/18/spanish-protesters-take-to-thestreets-against-the-pope/ Guardian: Pols Say Riots Werent Political But Looters Knew The Elite Commits Robbery In Broad Daylight http://blog.alexanderhiggins.com/2011/08/17/hearing-englands-riots-political-looterselites-committing-daylight-robbery-60211/ Germany And France Announce Plans For Single European Government As Solution To Debt Crisis http://blog.alexanderhiggins.com/2011/08/16/germany-france-announce-plans-singleeuropean-government-solution-debt-crisis-58511/ Mercedes Targeted as Luxury Cars Burned in German Globalization Protests http://www.bloomberg.com/news/2011-08-16/luxury-cars-burned-in-berlin-protests.html LATIN AMERICA LINKS Venezuela may (correction - updated info - it WILL) move billions of dollars of Gold and Cash out of U.S. http://sherriequestioningall.blogspot.com/2011/08/venezuela-may-move-billions-ofdollars.html

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MIDDLE EAST LINKS Guillotine display stuns Rothschild's 'tent city' http://www.ynetnews.com/articles/0,7340,L-4107640,00.html U.S. Officials: Syria Using Diplomats to Threaten Opposition Around the World http://www.foxnews.com/world/2011/08/17/us-officials-syria-using-diplomats-to-threatenopposition-around-world/

JAPAN - LINKS Bond markets signal 'Japanese' slump for US and Europe http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8710022/Bondmarkets-signal-Japanese-slump-for-US-and-Europe.html HEALTH LINKS Digestive Enzymes & Systemic Enzymes Important? http://www.youtube.com/watch?v=PrRXn0JIiQ8 Drug Reverses Aging Affects, Returns Cell Functions To Youthful Status http://beforeitsnews.com/story/961/526/Drug_Reverses_Aging_Affects,_Returns_Cell_F unctions_To_Youthful_Status.html

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