THE INTERNATIONAL FORECASTER

WEDNESDAY, MAY 20, 2009

052009 (6)_IF
P. O. Box 510518, Punta Gorda, FL 33951-0518
An international financial, economic, political and social commentary.

Published and Edited by: Bob Chapman

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 *****
NEXT SCHEDULED ISSUES
SATURDAY, MAY 23, 2009
WEDNESDAY, MAY 27, 2009
SATURDAY, MAY 30, 2009

“It is the duty of every patriot to protect his country from its government.”

“When my country, into which I had just set my foot, was set on fire about my ears, it
was time to stir. It was time for every man to stir.”

Thomas Paine
US patriot & political philosopher (1737-1809)

US MARKETS
The excuses coming out of Wall Street and Washington are truly mind-
boggling. We wonder how the public swallows them. One of the latest is that for one-
week applications for jobless benefits had fallen. That is good, but we’d need a
number of weeks of reduction for the fall to be meaningful. Anything to keep the
market from falling. This has been followed by a long line of liars telling us we had
bottomed out in the economy. The same litany we’ve been hearing for 22 months.
Unemployment is a lagging indicator thus; the increases have yet to end. The latest
bogus unemployment figures are 8.9% short term, including the birth/death ratio. That
is phantom jobs created by the government supposedly by small and medium sized
companies. That 8.9% supposedly matched up with the worst of the 1974 recession.
That is not true, because the formula in 1974 was far different than today’s monstrous
lies. The 1974 figures did not include the birth/death ratio, those working reduced
hours and those in part-time employment seeking full-time jobs, which now makes up
2.6% of the workforce. Then there is the 1% plus that is discouraged and have left the
workforce and probably won’t return.
Once unemployment has bottomed it could take a year or more before
employers begin to rehire. They have to be sure increased demand exists and that the
economy is recovering.
Today job losses are not only blue-collar, but white-collar as well. Due to free
trade, globalization, offshorting and outsourcing those jobs won’t come back. They
could return if Congress passed legislation implementing tariffs on goods and services.
All those manufacturing jobs will never return unless Congress acts. If they do not act
the economy is permanently doomed. Presently as many white-collar jobs as blue-
collar are being lost. Mechanics cannot easily work in healthcare and the wages are a
little more than one-third of what they were earning.
In 16 months the government admits that 5.7 million jobs have been lost. In the
previous 8 years we lost over 5 million. Just to show you how serious this is, in 8/1981
to 12/1982, we lost 2.8 million jobs. In 3/2000 to 5/2002 we lost 2.2 million. Over 9
years we have lost 10.7 million jobs “officially.” We’ll never know what the real figure
was. Can you imagine all the lost wages that left America to pay people in China, India
and Mexico, etc.?
In addition, we haven’t even addressed the new people entering the workforce.
Students with degrees who owe $60,000 or more for their education and cannot get
jobs, because elitist transnational corporations have shipped their jobs to low wage

3
countries. You are witnessing mass suicide of an entire country - up until now the
leading country in the world.
We are looking at layoffs as far as the eye can see and that means no recovery
and at the very best a flat no growth economy.
Americans, professionals and investors have to eventually come to grips with
officially sanctioned bogus accounting. That includes FASB rule changes to
accommodate Washington, bank and Wall Street. Then there are the Credit Value
Adjustments used to elevate corporate earnings statements. This is when banks write
down credit losses, then claim they can now be bought back and booked as gains, as
the SEC looks the other way. These are losses claimed as gains. This is fraud, yet,
nothing is done about it. This has been rife at the SEC since its inception. The big
illuminist firms are left alone. The SEC pursues small and medium securities firms and
brokers and newsletter writers. The SEC is an integral part of the elitist Wall Street
cabal, part of a major criminal enterprise.
Is it any wonder investors and retirees are disturbed? Home equity is down
30% to 40%, savings accounts are big losers due to inflation and pension funds are off
35% to 50%. Where does one go to protect their assets? They go to gold and silver
coins, bars and shares. You do not buy certificates, nor do you buy the ETFs, SLD and
GLD. In all cases you may never get your metal. Who knows whether these entities
have the metal they are supposed to have. If they do they may be lending it to other
parties, so that they can suppress the gold and silver prices. Eventually it will be found
that they do not have what they say they have. This could be another giant fraud. A
good question to ask is; why has Dubai asked for their gold to be delivered from
London and Germany from the US? The answer is they do not trust them anymore. In
addition the gold and silver inventories at the Comex continue to shrink, yet they show
no change in inventory. How can that be? If you play Comex take delivery. The only
safe place to be is in coins, bullion and shares. Let the exposure of the frauds begin.
The present administration has set a new and unfamiliar course for America.
The demands of labor unions now supercede these of debt holders. This move will
haunt the American capital markets far into the future. Centuries of legal precedent
have been overturned by executive fiat. Bond buyers will be very careful what they buy
in the future and how long they hold the bonds. The sanctity of contract no longer
exists. There no longer is a rule of law. The law is what the President says it is. We
can imagine the negative affect this is going to have on investment by foreigners in the
US as well as foreigners further holding of dollars. Capital will now feel unsafe in
America and you can expect capital to flee such a capricious government. America is
no longer the safest harbor for capital. This capital will now begin to move elsewhere
and into gold.
For Americans this trend set over the last eight years is ominous. It will spill
over into everyday life. Boy Scouts being trained to pursue terrorists with weapons as
Hitler did with the Hitler Youth. The tearing up of legal contracts. Removing children
from their parents because they won’t use failed medical treatments. Removing people
from their homes so banks can steal them. Forced inoculation of all in government
initiated flu epidemics. The federalization of police. The refusal to rid our nation of 30
million illegal aliens. Limits on safety and travel. The control of assets of Americans
worldwide with eventual currency controls. The continued nationalization in banking,
brokerage, insurance and manufacturing and the concentration into monopolies similar
to the experience of fascist Germany and Italy in the 1930s and 40s. Do not think it
can’t happen here – it can and is already happening.
By this fall America will be headed for a currency crisis, perhaps much sooner.
The dollar’s rally ended months ago at 89.50 on the USDX. It closed recently at 82.51.

4
The latest upward blip was on short covering. Get set for another downward move.
This is what happens when you have bogus rallies created by de-leveraging. It is only
a matter of time before the Treasury and the Feb become completely isolated from
foreign investment and then they will only have the printing presses left. That means
your money and your assets will have fallen in value 60% to 95%, except for the only
true money, gold and silver.
Last week the Senate voted to give illegal aliens access to Social Security
benefits.
The Treasury is going to try to get $108 billion for the IMF by sneaking it
through as a supplement to funding for Afghanistan, Iraq and Pakistan. This way it can
avoid any congressional debate over the policies of the IMF. It is neither a wise and
just use of tax dollars, and whether congress should insist on meaningful, observable
reforms of IMF policy as the price of new US funding.
For the past 28 years the IMF and the World Bank have become a creditors
cartel. They dictated all terms and if recipients wavered they had their credit cut off.
They imposed agendas of privatization, cuts in social spending, and demanded
removal of policies deemed obstacles to profit by foreign banks and corporations. In
recent years Venezuela, Brazil and Argentina have opted out, but the poorest
countries such as in Africa are entrapped in there clutches. The IMF doesn’t deserve
to be funded via more US tax dollars. It like the World Bank and the Fed should be
disbanded.
This week the Senate is considering the supplemental and if the money for the
IMF is not stripped out it goes to a House-Senate conference committee.
At worst the IMF should have its feet held to the fire. At best we cannot afford
another $100 billion debt. This money should be spent on poor and hungry Americans
who have lost their jobs.
The last year of life contains 30% of individual life health costs. We believe the
administration is going to recommend premature death for those with terminal
problems, all in the hope of cutting costs, so they can spend their funds for more wars.
Both will help with population control. The termination of useless eaters.
As mentioned previously Ontario, Canada, a city of 500,000 has barred US
contractors from doing business with the City, in retaliation for job losses due to US
protectionism in the stimulus plan. That movement is spreading and it is good news for
America.
Last week the Dow lost 3.6%, S&P fell 5%, the Russell 2000 4.7% and the
Nasdaq 100 2.8%. cyclicals fell 10.7%; transports 8.9%; consumers 3.3%; utilities
5.1%; high tech 2.5%; semis 3.09% and Internets 3.6%. Biotechs fell 3%; banks 16.2%
and broker/dealers 9.1%. Gold bullion gained $15.00 and the HUI Index slipped 0.4%.
Two-year T-bills yields fell 13 bps to 0.79%; the 10’s fell 16 bps to 13.13% and
the 10-year German Bund 8 bps to 3.36%. Junk bond funds saw the strongest inflow in
six years.
The Freddie Mac 30-year fixed rate mortgage rose 2 bps to 4.86%; the 15’s fell
1 bps to 4.52% and the one-year ARMs fell 7 bps to 4.71%. The 30-year fixed jumbo
rates rose 3 bps to 6.37%.
Federal Reserve credit jumped $75.1 billion to $2.116 trillion. Fed foreign
holdings of Treasury, Agency debt rose $23.5 billion to a record $2.684 trillion.
Custody holdings for central banks have been expanding at an 18.2% rate ytd, and
yoy are up $405 billion, or 17.8%.
Bank credit increased $14.3 billion, up 4% yoy. It is down $117 billion ytd, or
3.4%. Securities credit rose $1.9 billion; loans & leases rose $12.5 billion; C&I loans
fell $3.6 billion, growing 1.6% yoy. Real estate loans rose $4 billion, as consumer

5
loans fell $0.9 billion. Securities loans rose $1.5 billion and other loans gained $11.3
billion.
M2 rose $18.9 billion, up 3.8% ytd, and 9.1% yoy.
Total Money Market Fund assets increased $3.2 billion to $3.790 trillion, they
are down $40.7 billion ytd or 2.9% annualized.
Total commercial paper outstanding sank an additional $81.0 billion to $1.298
trillion. CP has declined 62% annualized and 26% yoy.
The dollar index gained this week, up 0.6% to 82.95. It will be short lived.
Today we find ourselves faced with major growing unemployment; falling
wages and via inflation and ever lower purchasing power. Most major banks and
brokerage houses are insolvent. Finances at the state and local levels are a mess.
20% of banks showed losses in the first quarter. If the 19 big banks passed the stress
test why do they need taxpayers loans. 20% of homeowners owe more on their homes
than they are worth and this number could easily double. Many pension plans will be
insolvent when we again test Dow 6,600. It will be much worse when we hit 3,800 to
4,200. Are you ready to give the FDIC $500 billion to bail out the banks? Where will
the funds come from for business expansion and recovery if banks are reluctant to
lend? Foreclosures are more than 40% of home sales. There are $100 billion in
commercial mortgages that cannot or won’t be refinanced. Banks do not want more
illiquid assets.
There is a new effort underway to further undermine your freedom. The border
states want Congress to recognize gift cards as ‘monetary instruments,” which could
require people to declare their value when they cross international borders: The
subject will be featured at the June Southwest Border Anti-Money Laundering
Conference.
Arizona’s Attorney General says a large amount of money is being sent to
Mexico via these cards and it is legal. Your freedom is being stolen item by item.
Anyone who believes the market rally of the past ten weeks is going to extend
further upward we believe is mistaken. We are 35% off the bottom and there is no
good news. In fact, it is worsening in spite of the fact that consumer confidence has
risen because Wall Street, Fed, Treasury and selected elitists tell us the bottom is in
and things will soon improve. V-shaped rallies always have to retest their lows. The
next visit to 6,600 Dow will see panic selling and any further rally would be sold into by
those sufficiently troubled by still being down 35% to 50%. Don’t forget as well that
more and more prime mortgages are going into foreclosure due to the worsening
economy and loss of good paying jobs. Then there is the enormous overhang of ALT-
A and Option-ARM resets, which will accelerate as the year moves on. These
residential and commercial loan problems, as we have said before, won’t end until
2012. Any hope of a recovery during the next 8 years is wishful thinking. The
fundamentals of the previous two stock market bubbles and the real estate bubble
have been broken and it will take years for the markets and the economy to adjust.
Just because things are not as bad as expected doesn’t mean they are good.
Looking back on the stress test it is important to know it was not a regulatory
procedure but a response to Congressional demands. What had been a Congressional
adversarial procedure was turned into a confidence building propaganda event by the
administration. The Fed used a different measurement of bank-capital levels than
analysts and investors had been expecting, resulting in much smaller capital deficits.
How is it possible to get full and fair disclosure using mark-to-model? That is where the
banks make their own estimates of the value of their portfolio. A group vastly incapable
of loss estimation and risk management.

6
 We ask how can anyone make a proper estimate of losses when mark-to-
market is not used and is replaced by mark-to-model, which is mark-to-whatever you
want it to be? The same goes for off-balance sheet commitments and contingent
liabilities and exposures over a 2-year horizon. We spent 28 years in the brokerage
business and we know Wall Street and banking are incapable of policing themselves.
Risk-weighted assets of the banks are 2/3s of their assets or almost $8 trillion at risk.
Just two weeks before that was the figure and it is now only 1% of that or $80 billion.
Anyone who believes these banks and our government is just plain dumb. The whole
exercise is a joke. Our government has already displayed they do not want accurate
public disclosure of losses. The numbers are all lies. The banks do not want TARP
funds because they cannot pay themselves outrageous wages and our Treasury and
the Fed go right along with the program. Much of the money is going back to
government to bail out the FDIC and to merge weaker small banks with weaker large
banks to create a banking monopoly for the Fed. This is what this is all about and that
is why Ron Paul’s HR 1207, the Federal Reserve Transparency Act of 2009, has to be
passed. It has a good chance with 159 co-sponsors. This will bring the Fed to a halt
and expose what they are up too and have been up too since 1913. These lies are
bringing investors into the market and keeping current investors in the market, so that
the insiders can dump their positions on them. These elitists are liars and crooks. We
wonder what the excuse will be in July and August when banks and financial firms
report much worse earnings? The market should get pounded. These same institutions
are selling billions of dollars of stock into the market presently by employing fraud.
Wait a few months when these shares are off 50%. Then the lawsuits will begin.
The analysts for many of these banks, brokerage houses and insurance
companies are telling us it is fine to have bailouts because we owe the money to
ourselves.” That is part of the political concept that has contributed to our present
position. The statement is totally inane. Obviously none of these idiots have ever heard
of ethics and morality. This is the crippled excuse by capitalists who quickly become
socialists when they are losing money and need to be subsidized. These are the same
bankers that illegally ran a casino and lost their money and are now insolvent. Now
through their campaign contributions and lobbyists they are allowing the taxpayer to
foot the bill. There is no law that says these crooks have to be bailed out. They should
be allowed to fail like any other company.
Our politicians are bought and paid for by these financial firms and unless there
is a ground swell of indignation these bankers will get bailout out and our financial
system will collapse. Just think of all the investors who have been cheated by these
people. Where is the SEC? Nowhere to be found, of course. We cannot continue to
allow arbitrary decisions of bureaucrats from Wall Street and banking to continue to
trash our Constitution and deprive us of our rights. The result will be if nothing else a
further loss of integrity in the capital markets. Washington, that is Goldman Sachs
south, decides which banks will be saved and which will go under, while the rich 19
money center banks are saved. What kind of a biased system is that? All these 19
banks should be taken into receivership and liquidated and let the chips fall where they
may. The system is going down no matter what actions are taken, so why are we
bailing out these anointed ones? It is because they run our country. Washington
doesn’t run our country – they do with their wealth that they have robbed from
Americans. Does it occur to anyone out there that we are witnessing a transfer of
trillions of dollars of purchasing power from those who didn’t finance reckless
mortgage loans to those who did? Production resources are being delivered into the
hands of those who have proven to be reckless and incapable. There you have it. We
haven’t advanced in 22 months and there is no light at the end of the tunnel. Even if

7
you see a light it will be the oncoming express. Be wise, except for gold and silver
shares be out of both the stock and bond markets. They are not going up and the best
bet is they are going down.
TIC flow data shows that in April that of $55.8 billion purchased in April Asia
bought $43,735 billion. Of that China bought $14.814 billion and Japan $23.244 billion.
We believe some substantial give-ups had to be given to China to do this.
Within the administration’s $787 billion stimulus package there lies $36.5 billion
in spending to create a nationwide network of electronic health records to fulfill one of
Mr. Obama’s key campaign promises. Barak may gain political points, but the
Healthcare Information and Management Systems Society are bigger winners. What
we have with no public debate is a major political and financial windfall.
Yes, networked electronic patient records that can be transmitted that
comprises a sixth of the economy. This is truly stealth healthcare reform.
Both government and private studies have found that much of the $2.5 trillion
spent on health care each year is wasted on the duplication of tests and unneeded
procedures.
There is no question records can be transmitted instantly and that would make
healthcare more efficient. Some say billions would be saved but we question that.
Providers and doctors won’t allow that to happen. That will cut their income
substantially. Then there is the surveillance factor and the eventual possibility of
government using this data to see who among the old need to be euphemized to cut
costs. 30% of lifetime medical costs occur in the last year of life. Think how much
money can be saved by killing off the old, not only in medical care but in Social
Security and retirement benefits as well. We cannot help but think of “Soylent Green.”
The change will fatten the bottom line for the 20,000 members of the
Healthcare Information and Management Systems industry. Lockheed Martin and
Northrop Grumman, McKesson, Ingenix and GE Healthcare. Plus the Pharmaceutical
Research and Manufacturers of America. Other winners may be the Partners
Healthcare System in Massachusetts, Kaiser Permanente, Microsoft, Google and
Siemens Medical Solutions.
This shows you how international trade is still being affected by worldwide
depression. In April in the Port of Long Beach, CA, net loaded inbound and outbound
traffic fell 26.6% and ytd it is off 21.7%. In the Port of Tacoma, WA, ytd net volume is
off 19.2% with autos off 47.4%. For general port industry statistics for the nation for
2009 to date the net is off 16.12% and for April it is off 12.11%.
Delinquencies on commercial property loans soared in the first quarter, as
rising vacancies and credit contraction made loan refinancing difficult, S&P said… The
number of commercial loans that paid off at maturity in the first quarter decreased to
55%, compared with 83% in the fourth quarter.
The size of the Federal Reserve’s balance sheet rose 5.6% over the past week
as the central bank bought Treasuries and mortgage-backed securities to bring down
U.S. interest rates. Mortgage-backed securities held by the Fed totaled $431.5 billion
as of yesterday, up $65.7 billion from the previous week. Total U.S. Treasury securities
owned by the Fed rose $16.5 billion to $577.1 billion. This is mind boggling considering
they have just begun buying.
In his bid for re-election, New Jersey’s Democratic Governor Jon Corzine trails
Republican challenger Chris Christie by nine percentage points.
The vice president, well-known for his verbal gaffes, confirms at a dinner the
existence and location of a secret hidden bunker that Cheney is believed to have used
after the 9/11 attacks. [Imagine the opprobrium and late-night jokes if Cheney or
Quayle had done this!]

8
 Members of Congress have been told in confidential briefings that Pakistan is
rapidly adding to its nuclear arsenal even while racked by insurgency, raising
questions on Capitol Hill about whether billions of dollars in proposed military aid might
be diverted to Pakistan’s nuclear program. .
As Binyamin Netanyahu, the Israeli Prime Minister, prepares to visit
Washington, it emerged yesterday that Leon Panetta, the head of the CIA, went to
Israel two weeks ago. He sought assurances from Mr. Netanyahu and Ehud Barak, the
Defense Minister, that their hawkish new Government would not attack Iran without
alerting Washington.
There are probably good reasons to give Richard Fuld a job at the hedge fund
Matrix Advisors. He is familiar with Byzantine financial products: Lehman Brothers, the
bank he used to run, gorged on them until it collapsed. He might know them enough to
be more careful around them the next time.
Still, I can’t get over just how flawlessly bankers bounce. Charles Prince, fired
for steering Citigroup toward financial collapse, found a new job as vice chairman of
Stonebridge, a consultancy firm. Stanley O’Neal, who was given a $161 million
parachute before being dumped for leading the toxic asset binge at Merrill Lynch, just
joined the board of American Beacon Advisors, a financial advisory company. I wonder
whether it wouldn’t be a better choice for these men to take a break.
European bonds are beating Treasuries for the first time in four years as the
European Central Bank lags behind the Federal Reserve in efforts to revive
contracting economies.
While the Fed is spending $300 billion buying Treasuries, part of $12.8 trillion
committed by the U.S. to lift the country out of its deepest recession since the 1930s,
the ECB has committed to buy 60 billion euros ($81 billion) in covered bonds,
securities backed by mortgages and public-sector loans. President Barack Obama’s
administration is selling almost three times more debt than the 16 euro-area
governments combined, according to Goldman Sachs Group Inc. and ING Groep NV.
Fitch expects that California will lead the way with an additional 36% decline in
home prices from current levels over the next 12 to 18 months. Florida and Arizona are
forecast to see declines of over 20% from today's levels in the same period. Not
surprisingly, these states saw the largest run up in prices, with them more than
doubling in the 2002-2006 period. To date, home prices in these three states have
already fallen by 40% on average.
"Though substantial further home price declines are still to occur, it does
appear that the new data is not indicating declines beyond those already anticipated,"
said Group Managing Director and U.S. RMBS group head Huxley Somerville. "Fitch
expects that declines will continue for at least a year before home prices reach
bottom."
California, Arizona and Florida account for approximately 50% of the overall
non-agency mortgage origination volume by dollar over the past four years. New York
has averaged approximately five percent of the dollar volume with New Jersey, Texas
and Illinois accounting for three to five percent on average.
Home price declines in the higher volume states outside of California, Arizona
and Florida have fared substantially better and are expected to see more moderate
further declines. Among these, Texas and Illinois are anticipated to see further
declines of 1% and 9% respectively and New York and New Jersey are expected to
see further declines of 11% and 20% respectively.
Fitch believes that most of the home price correction will occur in the next
eighteen months, with prices exhibiting more stability beginning in late 2010. Fitch's
forecast analysis assumes a 1.5% inflation rate for 2009 and 2010 and 3% for the

9
following three years. Nationally, Fitch expects home prices to fall a further 12.5% on
average.
Fitch's forecast is primarily based on its expectation that home prices will return
closer to the inflation-adjusted long-term historical mean, which has been the pattern
of prior home price cycles. However, given the volatile economic conditions, Fitch will
continue to actively review its forecasts.
GUN Control via IRS Senate Bill SB-2099 will require us to put on our 2009
1040 federal tax form all guns that you have or own. It may require fingerprints and a
tax of $50 per gun. This bill was introduced on Feb. 24. **This bill will become
public knowledge 30 days after it is voted into law.** This is an amendment to the
Internal Revenue Act of 1986. **This means that the Finance Committee can pass
this without the Senate voting on it at all.** The full text of the proposed amendment
is on the U.S. Senate homepage, http://www.senate.gov/ You can find the bill by
doing a search by the bill number, SB-2099.
Home builders brightened a second consecutive month, buoyed by record affordability.
The National Association of Home Builders released results of a monthly survey of
builders' thoughts on market prospects. Its latest index on their sentiment for sales of
new, single-family homes rose to 16 in May, from 14 in April and nine in March.
Nearly three-quarters of the aspiring Massachusetts elementary school
teachers who took the state's licensing exam this year failed the new math section,
according to results being released today that focus on the subject for the first time.
Education leaders said the high failure rate reflects what they feared, that too
many elementary classroom and special education teachers do not have a strong
background in math and are in many ways responsible for poor student achievement
in the subject, even in middle and high schools.
Elementary school teachers, including those in charge of first-grade
classrooms, are considered the front line of math instruction, providing the building
blocks of computation and mathematical reasoning that students must master before
tackling algebra, trigonometry, and calculus later in their academic lives.
A new Arizona State University study shows home prices in the Phoenix area
have dropped by a record 37 percent since February 2008, and they're expected to
drop even further.
But ASU professor of real estate Karl Guntermann said that's good news for
those looking to sell their homes, too. Although prices are dropping, he said the latest
figures show they're falling at a slower rate.
Guntermann estimates that homes in the Phoenix area sold for a median price
of $117,500 in April, down from a $119,000 March estimate, $121,000 in February and
$130,000 in January. Not long ago, prices were dropping by $10,000 to $12,000 a
month, he said.
"I'm guessing that a lot of people, when they see things improving, will put their
houses on the market," he said. "That addition to supply will help hold down price
increases."
Home prices in the Phoenix area have fallen each month for the past two years
straight, surpassing a previous record of 17 months set in the early 1990s. If
Guntermann's estimate for the median home price in April holds, he said that would
put prices back to the level they were in November 1998.
Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley
applied to refund a combined $45 billion of government funds, people familiar with the
matter said, a step that would mark the biggest reimbursement to taxpayers since the
program began in October.

10
 The three New York-based banks need approval from the Federal Reserve,
their primary supervisor, to return the money, according to the people, who requested
anonymity because the application process isn’t public. Spokesmen for the three
banks declined to comment, as did Calvin Mitchell, a spokesman for the Federal
Reserve Bank of New York.
If approved, the refunds would be the most substantial since Congress
established the $700 billion Troubled Asset Relief Program last year to quell the
turmoil that followed the bankruptcy of Lehman Brothers Holdings Inc. Banks want to
return the money to escape restrictions on compensation and hiring that were imposed
on TARP recipients in February.
The US Postal Service has cut its staff by 25,000 this year as it struggles to
reduce massive deficits, Postmaster General John Potter said Monday.
Postal employment is now below 635,000, Potter said, down from about
800,000 in 1999.
Thousands of carrier routes have also been eliminated as mail volume
declines, he said.
"We have an infrastructure that, quite frankly, we cannot afford based on the
income we're receiving," Potter said.
The agency still faces a potential $6.5 billion loss this year, Potter said, and
even with increased borrowing and other changes it could finish the year with a $1.5
billion shortfall.
The post office is seeking permission from Congress to reschedule some of its
contributions to a retiree health care fund, which would reduce spending this year by
$2 billion.
However, Potter stressed that the main problem is the weak economy and the
post office is "anxiously awaiting a turnaround."
The post office was already working to cope with a decline in first-class mail as
people turned to the Internet for personal communications as well as many financial
transactions as the economic downtown caused advertisers to scale back, further
cutting the mail stream.
The agency is expected to handle about 170 billion items this year, well below
the peak of more than 210 billion, Potter said at a briefing at the Postal Forum, a
convention for the mailing industry.
National chain store sales fell 0.2% in the first two weeks of May versus the
previous month, according to Redbook Research's latest indicator of national retail
sales released Tuesday.
The decline in the index compared with a targeted 0.1% fall.
The Johnson Redbook Index also showed seasonally adjusted sales in the
period were flat compared with May 2008, versus a targeted 0.2% rise.
Redbook said that on an unadjusted basis, sales in the week ended Saturday
were down 0.3% from the same week in 2008 after a 0.3% rise the prior week.
Redbook said at mid-May, sales were slightly below targets for the month. Cooler and
stormy weather lingering in many regions has suppressed seasonal business, it said.
The International Council of Shopping Centers and Goldman Sachs Retail
Chain Store Sales Index fell 1.2% in the week ended Saturday from its level a week
before on a seasonally adjusted, comparable-store basis. On a year-on-year basis,
retailers saw sales fell 0.3% in the latest week.
American Express Co., the largest U.S. credit-card company by purchases, will
cut about 6 percent of its workforce as cardholders squeezed by rising unemployment
fail to pay debts.

11
 American Express will take a charge of $180 million to $250 million in the
second quarter, mostly tied to severance and other costs from eliminating 4,000
positions, the New York-based company said today in a statement. Additional
reductions will be made in marketing and travel costs and consulting services.
The cuts, in addition to 7,000 job eliminations announced in October, may save
about $2 billion in expenses this year, the company said. American Express has had to
set aside more reserves for failed loans as surging U.S. unemployment makes it
harder for customers to pay debt. The jobless rate reached 8.9 percent in April, a 25-
year high.
President Obama will announce tough new nationwide rules for automobile
emissions and mileage standards on Tuesday, embracing standards that California
has sought to enact for years over the objections of the auto industry and the Bush
administration.
The rules, which will begin to take effect in 2012, will put in place a federal
standard for fuel efficiency that is as tough as the California program, while imposing
the first-ever limits on climate-altering gases from cars and trucks.
The effect will be a single new national standard that will create a car and light
truck fleet in the United States that is almost 40 percent cleaner and more fuel-efficient
by 2016 than it is today, with an average of 35.5 miles per gallon.
Builders broke ground on the fewest homes on record in April as a plunge in
work on condominiums and apartment buildings overwhelmed the second straight gain
in starts on single-family properties. Housing starts slid 13 percent to an annual rate of
458,000, a lower level than forecast, Commerce Department figures showed today in
Washington. The drop was led by a 46 percent tumble in multifamily starts, a category
that tends to be more volatile.
Housing starts and permits unexpectedly fell to record lows in April, a
government report showed on Tuesday, denting hopes that stability in the housing
market was imminent.
The Commerce Department said housing starts fell 12.8 percent to a
seasonally adjusted annual rate of 458,000 units, the lowest on records dating back to
January 1959, from March's upwardly revised 525,000 units. Compared to the same
period last year, housing starts tumbled 54.2 percent.
Analysts polled by Reuters had expected an annual rate of 520,000 units for
April. New building permits, which give a sense of future home construction, dropped
3.3 percent to 494,000 units, the lowest since records started in January 1960, from
511,000 units in March. That was well below analysts' estimates of 530,000 units.
Compared to the same period a year-ago, building permits plunged 50.2 percent.
Building completions rose 4.9 percent to 874,000 units.
The derivatives market shrank for the first time in the second half of 2008 as
the global financial crisis curbed trading, the Bank for International Settlements said in
a report.
The amount of outstanding contracts linked to bonds, currencies, commodities,
stocks and interest rates fell 13.4 percent to $592 trillion, the Basel, Switzerland-based
bank said yesterday. That’s the first decline in 10 years of compiling the data. The
amount of credit-default swaps protecting investors against losses on bonds and loans
fell 27 percent to cover a notional $41.9 trillion of debt.
Investors shunned derivatives as demand for risky assets withered after
Lehman Brothers Holdings Inc.’s failure in September. Trading volume may decline
further after more than 2,000 banks, hedge funds and asset mangers that trade credit-
default swaps agreed to a “Big Bang Protocol” last month that will make it easier to
move the contracts to a clearinghouse and eliminate overlapping trades.

12
 The Financial Times of London tells us small and medium sized banks will
need $24 billion in additional capital to meet the standards set forth by the government
in the stress tests of larger banks. The test is a farce, so if it would put 500 banks
under they must be basket cases already. In the top 200 banks after the top 19, 38%
are in serious trouble.
The Illuminists are into a real catfight. “It boggles one’s mind and strains everyone’s
credibility to find such screw-ups as JP Morgan and Goldman deemed healthy while
other screw-ups like Bank of America are branded as failures,” said an enraged
Kenneth D. Lewis, the CEO of BoA. He says the answers given by P Morgan Chase
and Goldman “were too good to be true.” It is the way they add up – not too good, and
not really as bad as ours. Numbers like that just do not happen in our business. It is as
if they knew ahead of time what the questions were. Irrespective of what government
says nothing will come of the investigation they have planned.
The Senate voted on Tuesday to prohibit credit card companies from arbitrarily
raising a person's interest rate and charging many of the exorbitant fees that have
become customary - and crippling - to cash-strapped consumers.
The overwhelming bipartisan vote of 90-5 was lawmakers' way of telling
Americans that they haven't been forgotten amid a recession that has left hundreds of
thousands jobless or facing foreclosure.
Pension Benefit Guaranty Corp.’s deficit tripled to $33.5 billion in the past six
months as companies canceled retirement plans in the U.S. recession, the head of the
government-owned corporation said.
About $11 billion is for “completed and probable terminations” of company
plans and $7 billion is from an increase in interest rates that boosted liabilities, Vince
Snowbarger, the acting PBGC director, said in written testimony to be delivered today
to the Senate Special Committee on Aging.
The PBGC, set up to protect the employee pensions of bankrupt companies,
will tell Congress that its financial condition may worsen amid the likelihood for more
pension plan failures. In the first half of the fiscal year that began in October, the
PBGC took on almost four times the number of participants as it did in all of 2008.
The potential for General Motors Corp. and Chrysler LLC to end their plans has
left the PBGC facing the prospect of adding 900,000 current and future beneficiaries.
The PBGC, which pays retirement income to almost 44 million Americans, estimates
that $77 billion of the automotive industry’s pensions are underfunded, with about $42
billion of that guaranteed by the agency for retirees.
Automotive industry workers are at substantial risk of losing money if
companies terminate their plans, according to Snowbarger’s prepared comments.
There are still sufficient PBGC funds to meet benefit obligations for many years
because benefits are paid monthly, spread over the lifetimes of participants and
beneficiaries, he wrote.
Photo gallery of attendees at the secret meeting on the global economy:
A top-secret meeting of the world’s richest people to discuss the global financial crisis
was held in New York on May 5, IrishCentral.com has learned exclusively.
The mysterious, media-blackout meeting was called by Warren Buffett, CEO of
Berkshire-Hathaway; Bill Gates, co founder of Microsoft; and David Rockefeller Jr.,
chairman of Rockefeller Financial Services.
In addition to Gates, Buffett and Rockefeller, the attendees included Oprah
Winfrey, George Soros, Ted Turner, and New York City Mayor Michael Bloomberg,
among others.
It was held in the President's Room at Rockefeller University In New York at 3
p.m. on that Tuesday afternoon.

13
How so many giant figures in American life managed to interrupt and coordinate their
schedules on such short notice, and meet in total secrecy in the world’s media capital
remains a mystery -- as does the ultimate outcome of the billionaires' conference.
In their letter of invitation, Gates, Buffett and Rockefeller cited the worldwide recession
and the urgent need to plan for the future. They said they wanted to hear the views of
a broad range of key leaders in the financial and philanthropic fields.
Each attendee was given 15 minutes to deliver a presentation on how they saw
the future global economic climate, the future priorities for philanthropy, and what they
felt the elite group should do.
According to one of the attendees, Gates was the most-impressive speaker of
the day, with Turner the most-outspoken and Warren Buffet the most-insistent on his
agenda for change.
Winfrey was said to be in a “listening mode."
Gates was worth an estimated $57B in 2008; more recently, Buffett clocked in
at an estimated $37B -- making them the richest Americans.
Winfrey was once the world’s only black billionaire, and has extensive holdings
in the entertainment and publishing industries, as well as being a leading
philanthropist.
Turner, founder of CNN, once donated $1B to the United Nations. Soros has a
personal fortune estimated at $11B, while Bloomberg is listed as the eighth-richest
American with a net worth of $20B .
Other invitees included Eli and Edythe Broad, whose current fortune is
estimated at $5.2B by Forbes Magazine; John Morgridge, former CEO of Cisco and
his wife Tashia; Peter Peterson, senior chairman of the Blackstone Group; Julian
Robertson, founder of Tiger Management Corp.; and Patty Stonesifer, former CEO of
the Bill and Melinda Gates Foundation.
The Obama administration may call for stripping the Securities and Exchange
Commission of some of its powers under a regulatory reorganization that could be
unveiled as soon as next week, people familiar with the matter said.
The proposal, still being drafted, is likely to give the Federal Reserve more
authority to supervise financial firms deemed too big to fail. The Fed may inherit some
SEC functions, with others going to other agencies, the people said. On the table:
giving oversight of mutual funds to a bank regulator or a new agency to police
consumer-finance products, two people said.
The 75-year-old SEC, chartered to oversee Wall Street and safeguard
investors, has seen its reputation tarnished as some lawmakers blamed it for missing
the incipient financial crisis and failing to detect Bernard Madoff’s $65 billion Ponzi
scheme. Any move to rein in the agency is likely to provoke a battle in Congress,
which would need to approve the changes, and draw the ire of union pension funds
and other advocates for shareholders.
Hewlett-Packard Co., the world’s largest maker of personal computers and
printers, fell as much as 4.5 percent in New York trading after saying that sales haven’t
shown signs of rebounding.
Annual revenue will drop 4 percent to 5 percent, the lower end of a forecast
range given in February, Hewlett-Packard said yesterday. Chief Executive Officer Mark
Hurd said he’s basing the forecast on the expectation that the economy won’t improve
in coming months.
“I’m not ready to call it better,” he said on a conference call. “It’s roughly going
to be the same the rest of the year.”
Hurd, who’s already trimmed jobs and slashed salaries at the company, will
eliminate another 6,400 workers in the next 12 months as sales slump for PCs and

14
printers. Hewlett-Packard’s services unit -- bolstered by the $13.2 billion acquisition of
Electronic Data Systems Corp. last year -- is becoming “our largest profit driver today,”
he said.
Treasury Secretary Timothy Geithner said he expects a pair of government
programs to help banks remove their distressed assets will start by early July, policy
makers’ next step in ending the worst credit crisis in decades.
“Working with the Federal Reserve and the FDIC, we expect these programs to
begin operating over the next six weeks,” Geithner said in prepared testimony to the
Senate Banking Committee today in Washington.
The Treasury’s Public-Private Investment Program will use $75 billion to $100
billion of government funds to finance sales of as much as $1 trillion in distressed
mortgage-backed securities and other assets. The effort has two components, which
the Treasury will manage in conjunction with the Fed and the Federal Deposit
Insurance Corp.
Geithner also said that the Treasury has about $124 billion left in the $700
billion Troubled Asset Relief Program, including $25 billion in expected repayments
over the next year. This compares with the department’s previous estimate of about
$135 billion remaining as of late March.
Geithner said the Treasury and the Fed also expect to expand programs
designed to help asset-backed securities markets, such as the Fed’s Term Asset-
Backed Securities Loan Facility. The central bank yesterday announced it would add
older commercial real estate securities to the TALF, marking the first time the program
has included legacy assets as well as newly issued securities.
President Barack Obama would sign legislation to curb credit-card fees even if
it contains a provision allowing visitors to national parks to carry guns, White House
spokesman Robert Gibbs said.
The U.S. Senate passed the measure yesterday and the House is scheduled to
give it final approval today.
The United Arab Emirates, the second largest Arab economy, has pulled out of
the planned monetary union of oil-rich Gulf states, dealing a blow to their goal of
establishing a European-style single currency.
“It’s like France saying it wants to pull out of the euro,” Eckart Woertz, an
economist with the Dubai-based Gulf Research Center, said today in a telephone
interview. “The single currency is dead.”
The U.A.E. has expressed reservations that Riyadh, the Saudi capital, was
chosen on May 5 to host the Monetary Council, a precursor to a common central bank.
Little progress prior to that decision had been made since September when central
bank governors approved the monetary union agreement.
The Gulf Cooperation Council in 2001 agreed to form an EU- style monetary
union. Oman pulled out in 2007. Saudi Arabia, the largest Arab economy, Kuwait,
Qatar and Bahrain are still part of the project. A single currency would enable Gulf
States to pursue a monetary policy that is independent of the U.S., as all except for
Kuwait peg their currencies to the dollar. It would also help support a fully integrated
economic zone.
Kuwait plans to “go ahead” with the Gulf single currency, Kuwaiti Finance
Minister Mustafa al-Shimali said in a phone interview today. He added that Kuwait has
not received “anything official” on the U.A.E. pulling out.
The volume of mortgage applications filed last week rose a seasonally adjusted
2.3% compared with the week before, as mortgage rates fell, the Mortgage Bankers
Association reported Wednesday.

15
 Applications were up 42% for the week ended May 15, compared with the
same week a year ago. The MBA survey covers about half of all U.S. retail residential
mortgage applications.
Refinance applications rose an unadjusted 4.5% last week, compared with the
previous week. Applications for mortgages to purchase a home fell a seasonally
adjusted 4.4%.
The four-week moving average for all mortgages was down 6.4%.
Applications filed for refinance mortgages rose to 73.6% of all applications, up
from 71.9% the previous week. The share of adjustable-rate mortgages rose to 2.4%,
up from 2.3%.
Mortgage rates decreased last week, with 30-year fixed-rate mortgages
averaging 4.69%, down from 4.76% the previous week; average points to obtain the
mortgage also decreased to 1.13 last week from 1.18 the week before. A point is 1%
of the mortgage amount, charged as prepaid interest.
Fifteen-year fixed-rate mortgages averaged 4.44%, down from 4.50% the
previous week; points decreased to 1.01 from 1.08. And 1-year ARMs averaged
6.38%, down from 6.41%; points decreased to 0.10 from 0.11.
Southern California's median home price slipped slightly in April, new figures
show, but the volume of home sales tells a tale of two housing markets.
In distressed areas such as the Inland Empire, homes are selling at a
quickening pace, as buyers snap up foreclosed properties at cut-rate prices. But in
more expensive areas such as Pacific Palisades and Corona del Mar, activity is still
largely frozen. Many well-heeled homeowners who aren't under financial pressure to
sell are keeping their properties off the market or holding out for prices that buyers are
either unable or unwilling to pay.
"Until those people are forced to sell, they're not going to," said Richard Green,
director of USC's Lusk Center for Real Estate. "That might change if lots of high-
income people lose their jobs."
Southern California's median home price was $247,000 in April, down from
$250,000 in the first three months of the year, San Diego-based MDA DataQuick
reported Tuesday.
Many sellers in high-end ZIP Codes still believe their properties can command
what they did at the top of the market. Buyers think otherwise. Sales in Manhattan
Beach were down 12% in April from a year earlier.
Meanwhile, inland communities including Lancaster, Perris and Indio posted
record or near-record high sales totals in April, DataQuick reported. Sales tripled in a
Palmdale ZIP Code where the median price dropped 57% to $53,000.
April's median home price for six Southern California counties was 51% below
its 2007 peak. The low prices continued to attract buyers. The total of 20,514 homes
sold last month was up 5.2% from March and up 31.4% from a year earlier, DataQuick
reported.
"There seems to be some market clearance going on," said Vandell, director of
the Center for Real Estate at the university's Merage School of Business. Among
lower-priced homes, "product is moving, which will in fact stabilize that [segment] of
the market."
In April 2008, foreclosed homes made up 38% of homes sold. Last month,
previously foreclosed homes accounted for 54% of the sales total. April was the
seventh consecutive month in which most homes sold in Los Angeles, Orange,
Riverside, San Bernardino, San Diego and Ventura counties had been foreclosures.
The trend of falling prices drawing buyers has been slowly working its way up
the price ladder. A year earlier, the median home price was still a hefty $435,000 in

16
Los Angeles County, and home sales were down 31% from April 2007. With Los
Angeles County's median at $300,000 last month -- down 31% from a year ago --
sales were up 28% from April 2008.
The connection between prices and sales was clear in two adjacent Woodland
Hills ZIP Codes last month. In one, the median April sales price fell 27% from a year
earlier to $521,000 -- and home sales were up 86%. In the other ZIP Code, the median
price fell by a more modest 15% to $605,000, and April sales fell 9% from a year
earlier.
The worst may be yet to come for wealthier areas because "we still face two
big threats to price stability: layoffs, which can cause foreclosures across the home
price spectrum, and possibly a new round of foreclosures triggered by defaults on
'option ARM' and 'stated income' loans used in mid- to high-end markets," DataQuick
President John Walsh said.
Interest rates remain relatively high and credit standards tough for "jumbo"
mortgages of $417,000 and above. DataQuick reported such loans comprised about
11% of mortgages for homes sold last month, down from about 40% of sales in late
2007.
Mortgage defaults in Los Angeles County have been rising at a faster rate this
year than in the Inland Empire, which saw its wave of foreclosures earlier. In the first
quarter of 2009, Los Angeles County default filings -- the first stage in the foreclosure
process, which occurs when a borrower has missed multiple payments -- were up 38%
in Los Angeles County from the same period last year. In Riverside County, defaults in
the first quarter were up 13%, and in San Bernardino defaults for the quarter rose
19%, according to DataQuick.
But Los Angeles County's median home price actually held steady in April for
the fourth month in a row, and San Diego's median rose a bit from March to $290,000,
up from $285,000. The median price can rise as a greater number of higher-priced
homes sell -- even if prices for those individual properties fall.
"If the bottom is flat but the top goes down, you can get a paradoxical
outcome," Green said. "The median price goes up even as prices are falling."
U.S. housing starts and permits fell to record lows in April, weighed down by a
slump in multifamily units, according to data on Tuesday that still hinted the U.S.
recession may be drawing to a close.
The Commerce Department said housing starts fell 12.8 percent to an annual
rate of 458,000 units last month, the lowest since records began in January 1959.
The drop reflected a 46.1 percent plunge in breaking ground for multifamily units and
indicated homebuilding remains a drag on the economy. However, starts for single-
family homes, rose 2.8 percent, a second straight gain that showed the worst-hit part
of the market was stabilizing.
The Wall Street Journal says some 600 small and midsize banks will fail the
stress test. The say commercial real estate loans could generate $100 billion in losses
by the end of 2010. In a worse case scenario they cold lose $600 billion.
Credit is still scarce for farmers and small companies.
Gregory Mankew, a former White House adviser and Ken Rogoff, who is chief
economist at the IMF say the US needs more inflation to speed recovery. Rogoff wants
6% inflation for two years.
Of those at the Bilderberger meeting in Greece were Timothy Geithner, Paul
Volcker and Larry Summers, NSA Director and National Security advisor Keith
Alexander and James L. Jones. Tagging along was David Rockefeller.
Since February 2008 Cannondale has been owned by Dorel Industries, the
same company that owns the Schwinn, GT, Mongoose, Pacific and Sugoi brands.

17
 Ever since the initial purchase people have been wondering if and when the
long-standing US Cannondale production facility in Bedford PA would be closed up in
search of cheaper overseas labor. The time has come - Cannondale will cease US
production by the end of 2010, moving all production to Taiwan.

*****

Texas Straight Talk

Audit the Fed, Then End It!
http://www.house.gov/htbin/blog_inc?BLOG,tx14_paul,blog,999,All,Item%20not%
20found,ID=090518_2909,TEMPLATE=postingdetail.shtml
*****
Z E R O H E D G E
http://zerohedge.blogspot.com/2009/05/flagrantly-visible-hand.html

*****
Bilderberg Fears Losing Control In Chaos-Plagued World
Paul Joseph Watson
http://www.infowars.com/bilderberg-fears-losing-control-in-chaos-plagued-
world/

*****
Our man at Bilderberg: 'You are not allowed to take pictures of policemen!'
<http://www.guardian.co.uk/world/2009/may/17/charlie-skelton-bilderberg>

Charlie Skelton is scared, jumpy and hacked off at the police state built around
Bilderberg. So hacked off, in fact, he has asked the police to stop following him. Bad
move.
By Charlie Skelton, The Guardian {U.K}, May 2009

I need to go back a day and tell you exactly how I came to be in an Athens metro
station at 8am, grappling with two strange men, struggling and yelling: "Help me
somebody! Security! Please! Someone get security! Get the police!" My voice still
hurts. My brain is ready to explode.
http://www.guardian.co.uk/world/2009/may/17/charlie-skelton-bilderberg

LC Editor: Please follow the news updates at www.libertycalling.com

<http://www.libertycalling.com/> also, since we may be experiencing difficulty getting
some “politically sensitive” news items out directly to the LC list. That’s life in the New
Amerika.
*****

California Rejects Schwarzenegger’s Budget Measures

http://www.bloomberg.com/apps/news?pid=20601103&sid=akNPhAHhHKY8&ref
er=us
*****
The Russell Tribunal on Palestine
by Stephen Lendman
http://sjlendman.blogspot.com/
*****

18
Reviewing Ellen Brown's "Web of Debt:" Part VI
by Stephen Lendman
http://sjlendman.blogspot.com/
*****
"Over the Rainbow"
by Stephen Lendman
http://sjlendman.blogspot.com/
*****
http://mgray12.wordpress.com/2009/05/20/dollar-daze/

Dollar Index shows the way for commodity rise.

Michael Gray
Deputy Sunday Business Editor
New York Post
mgray@nypost.com
*****
New GI Bill Too Popular for the Pentagon's Own Good?
http://www.truthout.org/051509EDA?n
*****
The Final Push for World Government
http://www.youtube.com/watch?v=f1bjnkOqT8k
*****

Government Readies Youth Corps To Take On Vets

Paul Joseph Watson & Kurt Nimmo
http://www.infowars.com/government-readies-youth-corps-to-take-on-vets/
*****
Tucker from Greece: Bilderbergers own President Obama
http://www.infowars.com/tucker-from-greece-bilderbergers-own-president-obama/
*****
FLASH! TROUBLEMAKERS CONVENTION
http://www.americanfreepress.net/html/troublemakers_178.html
*****
LaRouche: Obama Has Adopted Hitler's Program
http://www.larouchepac.com/print/10241
*****
The Incredible Shrinking Economies
http://www.moneyandmarkets.com/the-incredible-shrinking-economies-2-33792
*****
Tapping your cell phone
Interesting- at the very end you will find out how to make sure you are having a truly
private conversation. Was also shown on the show 24. Also this is mainstream news.
Another reason to maintain a landline.
Cell phone spyware
http://www.youtube.com/watch?v=uCyKcoDaofg
*****
AmeriCorps Paramilitary Propaganda Ad
http://www.infowars.com/americorps-paramilitary-propaganda-ad/
*****
As Detroit Crumbles, China Emerges as Auto Epicenter - this is why we need
tariffs on goods and services if we are to survive as a first world nation.

19
http://www.washingtonpost.com/wp-
dyn/content/article/2009/05/17/AR2009051702269_pf.html
*****
Obama Pushes Anti-Gun Treaty
<http://www.youtube.com/watch?v=D9X2VbhSH9o> VIDEO
Lou Dobbs, YouTube, May 1, 2009
President Obama supports an international treaty creating sweeping gun control
efforts. Ratification of the current treaty, which President Bill Clinton entered
into during his time in office but which was not ratified by the Senate at that
time, would could curtail the American peoples’ right to keep and bear arms as
specified under the U.S. Constitution’s Second Amendment.
For the full text of this treaty, go here:
http://www.oas.org/juridico/English/treaties/a-63.html
Click here to access the video, http://www.youtube.com/watch?v=D9X2VbhSH9o
*****

Truth Sets Us Free

Dedicated to liberating Americans through education!
http://www.truthsetsusfree.com/HJR192.htm
*****
Six U.S. insurers to tap TARP funds
http://business.theglobeandmail.com/servlet/story/RTGAM.20090515.wtarpinsur
ers0515/BNStory/Business/?cid=al_gam_nletter_maropen#headline

*****
Daniel Estulin on Bilderberg 2009
<http://www.youtube.com/watch?v=hjjaGPMrK90> --- JUST RELEASED VIDEO
REPORT!
Veteran Bilderberg researcher Daniel Estulin joins The Corbett Report to discuss this
year's Bilderberg conference. Download the entire interview from The Corbett Report
homepage:. http://www.corbettreport.com Mind blowing!
http://www.youtube.com/watch?v=hjjaGPMrK90

LC Editor’s Comments:
Estulin states that the Bilderbergers are addressing several concrete issues during this
convention, a major one being whether to engineer a long, gut wrenching depression
lasting a decade or a short one lasting a few years. The short one will probably be
favored since the financial interests of the Bilderbergs members would be too badly
damages by a long economic turndown.

As to economic conditions in the U.S. Estulin said to expect U.S. employment figures
to hover around a true14 percent level by this end of this year. To the uninformed
there appears to be some improvement in the U.S. economy, with stock prices
recovering slightly from low in the DJIA in the mid 6000 range to about 8300 now. The
information he has from his Bilderberger contacts is that this situation was engineered
to sucker investors into reinvesting in the markets and then, months from now, pull the
rug out from under them, letting the markets collapse, causing gut wrenching
subsequent losses in their portfolios.

Regular LC readers who are also subscribers to Bob Chapman’s International

Forecaster news letter, or who at least read his articles posted at

20
www.theinternationalforecaster.com <http://www.theinternationalforecaster.com/> will
observe that Estulin, who apparently has connections to persons inside the
Bilderberger membership, and Chapman, who may use other sources, concur in their
evaluation of the current behaviors of the equity markets.

Estulin comments during the interview that the world is not suffering a recession or
even depression, but a general breakdown crisis of the global economy. He says that if
President Obama continues with his recovery program, which will effectively worsen
this crises, we can expect to witness a general reduction in the world’s population by
two-thirds within a generation; that is from 6.7 billion to 2 billion persons, a highly
desirable outcome from the viewpoint of these globalists.

The Bilderbergers are also looking into promoting nuclear generation of electric power,
as a way of providing additional more energy of industries needs in the future. The
downside of this solution from the standpoint of the Bilderbergers is that it would
probably give rise to an increase in the world’s population to 10 billion people. What
can be done about ridding ourselves of the disastrous influence of the Bilderbergers
and the Illuminist brethren on our lives? Estulin has spoken to a former high level
Bilderberg member, who told him that this economic collapse of the banking systems
of the world was engineered by the Bilderberger group and that this method was a far
better way of gaining control of all sovereign nations now than by engineering wars.
The elitists control us through manipulation of money supply, interest rates and
markets.

Consequently, according to Estulin, education of the world’s people on how money

actually works and motivating them to no longer play the banking game – by actually
withdrawing their money from banks – is the optimum way to break the control of the
Bilderbergers or equivalently, the Illuminists, the elitists, the globalists – on the people
of the world.

On learning out money works, here are my three suggestions for LC readers: Start by
reading Bob Chapman’s International Forecaster newsletters regularly or at least view
his articles posted online at the IF site. Also read the books, Secrets of the Federal
Reserve, by Eustice Mullins and The Creature from Jekyll Island, by G. Edward
Griffin, from cover to cover. Griffin also presents the material in his book in a 71-
minute long YouTube video*. Warning: I will not be responsible for the damage you
create if you end up smashing the screen of your TC set with a hammer in anger after
you have watched this video! Just kidding!
*Here’s the link: http://video.google.com/videoplay?docid=-8484911570371055528

*****
All Patriots Are Gun Owners But Not All Gun Owners Are Patriots
by Karen De Coster
http://lewrockwell.com/decoster/decoster152.html
*****
New rules: Work 'til you die
Jerome Corsi’s Red Alert
http://www.redalert.wnd.com/index.php?fa=PAGE.view&pageId=320
*****
Rumsfeld's renegade unit blamed for Afghan deaths

21
Special Forces group implicated in three incidents that claimed the lives of
hundreds of innocent civilians / MarSOC was set up by former defense secretary
despite opposition from within the Marine Corps
http://www.independent.co.uk/news/world/asia/rumsfelds-renegade-unit-blamed-
for-afghan-deaths-1685704.html
*****
‘You can't authorise murder': Hersh
http://archive.gulfnews.com/articles/09/05/13/10313137.html
*****
Contractors involved in shooting are virtual prisoners, attorney says
http://edition.cnn.com/2009/WORLD/asiapcf/05/16/afghanistan.contractors/
*****
Scathing Watchdog Report Blasts Securities and Exchange Commission
Oversight
http://www.truthout.org/051809K
*****
Gun-grabber Rep. Carolyn McCarthy Introduces “No Fly, No Buy Act”
http://www.infowars.com/gun-grabber-rep-carolyn-mccarthy-introduces-no-fly-no-buy-
act/
*****

UN Secretary–General Ban Ki-Moon Calls For Expulsion of Israel From The

United Nations
by bstender
http://www.indybay.org/newsitems/200...7/18595524.php
<http://www.indybay.org/newsitems/2009/05/17/18595524.php>

*****
US journalist claims Bhutto was killed on Cheney’s orders
http://www.thaindian.com/newsportal/south-asia/us-journo-claims-bhutto-was-
killed-on-cheneys-orders_100194038.html
*****
American Capitalism Gone With a Whimper
http://mat-rodina.blogspot.com/2009/04/american-capitalism-gone-with-whimper.html
*****
Israel ups war training despite US discontent
http://www.presstv.ir/detail.aspx?id=94859&sectionid=351020202
*****
'The Body' Is Back’
http://www.foxnews.com/search-results/m/22320818/the-body-is-
back.htm#q=jesse+ventura
*****
"The Worst Is Yet to Come": If You're Not Petrified, You're Not Paying Attention
http://finance.yahoo.com/tech-ticker/article/248398/%22The-Worst-Is-Yet-to-
Come%22-If-You
*****
Coburn amendment passes in the Senate! Battle over National Park Service
gun ban repeal likely to continue in conference
http://gunowners.org/

*****

22
HHC - Republics , SSSeries: 6-10
http://www.youtube.com/watch?v=OplmP0T8v0U
*****
One of the most decorated combat veterans in US military history...but
you'll never hear his name.
Here's why:
http://www.brasschecktv.com/page/624.html

*****
From a Fellow Subscriber:
Hi Bob: In case you have not seen it yet Beverly Hills hedge fund manager B Lenny
Ruderman, age 46, was arrested Friday by the FBI. Rumor has it that “on a charge of
bilking investors out of $44.3 million, the U.S. attorney's office said. Ruderman, 46,
surrendered to FBI agents after being named in a wire fraud complaint. He appeared
in court several hours later and was released on $500,000 bond.

The complaint said he lied about “profits,” repeatedly sent false account statements to
investors and reported he had “$206 million” in funds under management after actually
losing $3 million in 2008 and beginning 2009 with a net value of only $588,246. If
convicted, Ruderman faces a maximum of 20 years in federal prison. “another Zionist
bad boy bites the dust; so far only the minnows are falling the jumbo whales like
Madoff, must be nervous—once it comes out that Madoff was fronting for the NY FED
and that is why the SEC AND THE FDIC “GAVE HIM THE STEVIE WONDER
TREATMENT” FOR TEN YEARS AS YOU HAVE BEEN WHITSLE BLOWING IN THE
IF AND ON THE RADIO NON STOP. SOONER OR LATER ALL OF THE ABOVE
WILL GO ---“VIRAL” ---AND EVERYONE ON EARTH WILL KNOW.
*****
From a Fellow Subscriber:
Bob,
This lawyer is a Christian fighting for human rights in China. He has been kidnapped
again and tortured many times. This is the sort of thing patriots in the U.S., Canada
and the West can expect from their fascist dictatorships unless we fight now for weak.
Those who are in this world and believe in pure love, peace and righteous judgment
for the oppressed are few but we have the strength that comes from the rue God, our
Father. We are connected like the links of a chain. The Luciferians that run China and
are in control of the U.S.A. wish to break the weakest link. To divide and conquer.
They are cowards. Full of fear of a few people who speak the truth. Imagine how
terrified they will be when the people around the world rise out of their stupor induced
by propaganda and their sloth to resist the tyranny of these tyrants. Tyrants who dwell
in dark places under rocks like the slugs they are.

This brief film chronicles his torture. Their is a petition to sign. Original letters and
written documents describing the torture of a Chinese patriot for truth and freedom. If
we do not help him we will likely be next. Please publish this in the IF if possible.
Here is the link to help save this man. http://www.freegao.com/
*****
From a Fellow subscriber (this is from a Lady):
But Bob, the elitists are getting bailed out and isn't that the important thing here? Why
should all us useless eaters be helped by a cadre of criminals who are so psychotic
they only look out for themselves and their partners in crime? When the generally
dumb public finally wises up, and they will because the reality of living on the streets

23
will get their attention, there will be definite shortages of lampposts to string these guys
up. But we do not need lampposts to eradicate this vermin. Waterboarding and other
methods of torture will suffice. What goes around comes around, Illuminati.
*****

From an Interested Reader:

Bob,
This is Jeff and I'm writing you all the way from Malaysia.
First off, YOU ARE THE ILLUMINATI'S WORST NIGHTMARE AND TRULY A
TREASURE FOR HUMANITY TO SAVOUR!!
Just wanted to share with you the latest piece written by James Quinn; here's the link
http://theburningplatform.com/economy/jesus-of-suburbia
Many heartfelt thanks for the wake-up call to those of us fortunate enough to "meet"
you in cyberspace.
Stay Young.
Best Wishes
*****

COMMODITIES
Gold ended the week up 1.6% to $931 (up 5.6% y-t-d). Silver was little
changed at $13.97 (up 23.6% y-t-d). June Crude dropped $2.11 to $56.52 (up 27% y-
t-d). June Gasoline dipped 1.5% (up 58% y-t-d), and June Natural Gas sank 4.7%
(down 27% y-t-d). Copper fell 6.3% (up 43% y-t-d). July Wheat declined 2.3% (down
5% y-t-d), and July Corn fell 0.9% (up 3% y-t-d). The CRB index dropped 2.9% (up
2.9% y-t-d). The Goldman Sachs Commodities Index (GSCI) declined 2.8% (up 14.6%
y-t-d).

GOLD, SILVER, PLATINUM AND PALLADIUM

Monday opened mixed as the Dow rose 27 to 8,294; S&P gained 36; Nasdaq
was up 38 and the FTSE 35 Dow points. The Nikkei fell 226; the CAC fell 2 and the
DAX fell 1. The yen fell .0047; the pound rose .0089 and the euro fell .0018. The 2-
year was 0.85%; the 10’s 3.12%; 1-month Libor 0.33% and 3-month 0.83%. Oil was up
$0.84;gas rose $0.02 and natural gas rose $0.01. Gold fell $0.90 to $930.40; silver fell
$0.04 to $13.94 and copper fell $0.01 to $2.00. Over the last three weeks the price of
gas at the pump has risen $0.25 to $2,30 a gallon. Two hours and a quarter prior to
the Comex opening gold and silver began to come under pressure.
On Monday spot gold fell $8.90 to $921.30, as silver fell $0.18 to $13.81. The
June gold contract was off $3.50 more and silver was $0.08 easier. It looks like a
softer opening tomorrow, but gold and silver shares are saying we’ll be up in the
morning. AEM rose 0.57%; GG rose 0.24%; SSRI rose 1.48% and MFN was
unchanged. We were stunned again by bogus reporting on Kitco, “Gold down as the
dollar rises.” The dollar was down all day. The yen fell .0149 to $.9642; the euro rose
.0058 to $1.3533; the pound rose .0158 to $1.5315; the Swiss franc rose .0055 to
$1.1159; the Canadian dollar gained .0117 to $.8597 and the USDX, the dollar index,
fell .51 to 82.51.
Gold open interest rose 4,507 contracts to 367,232, as silver interest fell 1,664
contracts to 94,496. Gold jewelry demand in India at over $900 an ounce is picking up
and bodes well for the Diwali festival later in the year. The HUI fell 1.47 to 340.45 and
the XAU rose .49 to 137.25.

24
 Oil rose $2.69 to $59.03; gas rose $0.08 to $1.76 and natural gas rose $0.08 to
$4.18. Copper rose $0.06 to $2.07; platinum rose $0.30 to $1,139 and palladium rose
$2.10 to $229.05.
The Dow rose 235 to 8,504; S&P rose 241 and Nasdaq rose 313 Dow points.
The 2-year yield on T-bills was 0.92% and the 10’s were 3.22%.
Early Tuesday saw strength overall. The Dow rose 66 to 8,536; S&P rose 61;
Nasdaq gained 18 and the FTSE was up 58 Dow points. The Nikkei rose 252 to 9290;
the CAC was up 44 and the DAX rose 116. The 2-year T-bill was 0.92%; the 10-year
notes were up to 3.25%; the one-month Libor was off to 0.32% and the 3-month
0.79%. The yen rose .0029; the euro gained .0076 and the pound rose .0168. Oil rose
$0.82; gas was up $0.02 and natural gas rose $0.01. Gold was off $0.30 at $921.40;
silver gained $0.10 to $13.92 and copper rose $0.05 to $2.12.
China's gold reserves may serve as backing for the yuan as Beijing promotes
its use overseas, said Zheng Lianghao, managing director of the World Gold Council's
Far East division, the Shanghai Securities News reported Monday.
Zheng, who was speaking at a forum over the weekend, said increasing gold
holdings would provide China with a useful hedge as the dollar faced the possibility of
depreciation, according to the report.
In late April, the official Xinhua News Agency quoted Hu Xiaolian, the head of China's
foreign exchange agency, as saying China's gold reserves had risen 454 metric tons
since 2003 to 1,054 tons.
Gold purchases rose 38 percent in the first quarter, led by investment demand
that exceeded usage by jewelers for the first time since at least 2004, according to the
World Gold Council.
Global demand increased to 1,015.5 metric tons, from 733.9 tons a year
earlier, the London-based council said today in a report based on figures from
research company GFMS Ltd. Investment purchases more than tripled to 595.9 tons
while jewelry demand fell 24 percent to 339.4 tons.
Gold rose to an 11-month high of $1,006.29 an ounce on Feb. 20 as
governments spent trillions of dollars to fight recession, sparking speculation inflation
will accelerate. In India, the world’s largest gold buyer last year, jewelry demand was
the lowest in at least 20 years and net retail investment turned negative for the first
time as holders sold metal for recycling, the council said. Chinese demand was six
times that of India.
“In the current environment, investment demand is part of the diversification of
assets in portfolios and therefore is less sensitive to price than jewelry demand,” said
John Meyer, research director at Fairfax IS in London.
Investment demand for coins, bars and exchange-traded funds was the highest
since at least 2004, when GFMS began tracking them, and “could well be” a record,
GFMS senior metals analyst Philip Newman said. Jewelry demand had accounted for
about two- thirds of gold demand in the past 30 years, he said.
On Tuesday spot gold rose $5.80 to $926.10 as silver rose $0.30 to $14.11.
The outside months were relatively the same. The XAU rose 3.25 to 140.52 and the
HUI rose 9.40 to 349.85. Generally speaking shares were marginally higher. Do not
forget that yesterday when gold fell some $8.00 the shares were relatively unchanged
in anticipation of a better day in gold and silver today. AEM rose 1.18%, or $0.62 to
$53.28; GG was up 1.69%, or $0.57 up to $34.09; SSRI rose 7.12%, up $1.38 to
$20.76 and MFN was up a whopping 8.35%, or $0.66 to $8.56. Gold open interest fell
1,604 contracts to 365,631, as silver OI rose 177 to 94,573.
Gold has decoupled from the dollar, but dollar weakness is still reflected slightly
in gold. The dollar got hammered again today for a second day in a row. The yen rose

25
.0034 to $.9611; the euro rose .0119 to $1.3652; the pound rose .0198 to $1.5513; the
Swiss franc rose .0071 to $1.1071; the Canadian dollar rose .0078 to $.8675 and the
USDEX, dollar index, fell .60 to 82.06. It is off 1.11 over the last two days.
Oil rose $0.76 to $60.35; gas was unchanged at $1.79 and natural gas fell
$0.23 to $4.03. Copper was unchanged at $2.07; platinum rose $9.60 to $1,147 and
palladium rose $5.00 to $235.00. The CRB rose .29 to 241.45.
The Dow fell 29 to 8,474; S&P fell 15 and Nasdaq rose 12 Dow points. The 2-
year T-bill yielded 0.89; the 10’s 3.24%; 1-month Libor 0.31% and 3-month 0.75%.
The ECB says gold and gold receivables fell 14 million euros or 0.63 tons on a
sale by one ECB central bank.
Early Wednesday was mostly positive. The Dow was 8,476 up 27; S&P gained
35; Nasdaq rose 4 and the FTSE was off 14. The Nikkei rose 55; the CAC gained 12
and the DAX rose 33. The yen rose .0026; the euro rose .0022 and the pound rose
.0001. The 2-year was 0.88, the tens were 3.24%; the 1-month Libor was 0.31% and
the 3-month 0.75%. Oil rose $0.50; gas gained $0.03 and natural gas fell $0.05. Gold
was up $3.60 to $930.30, silver rose $0.11 to $14.24 and copper rose $0.02.
By Peter Starck FRANKFURT, May 19 (Reuters) - Private investors should
hold up to 15 percent of their wealth in physical gold, according to a German asset
management company which plans to set up 500 "Gold-To-Go" ATMs in Germany,
Switzerland and Austria this year.
A gold-dispensing automatic teller machine (ATM) was on display at Frankfurt's
main railway station for a one-day marketing test on Tuesday.
A one-gram (0.0353 ounce) piece of gold, the size of a child's little fingernail
and about as thin, cost 31 euros ($42.25) -- a 30 percent premium to the spot market
price.
The flat rectangular piece, bearing the imprint of Belgian metals and speciality
materials firm Umicore, came out of the cash-only ATM in a tin box, including a
certificate of authenticity.
"This is more than a marketing gimmick," said Thomas Geissler, chief
executive of TG-Gold-Super-Markt.de, the company planning to set up the 500 gold
ATMs at a cost of 20,000 euros apiece.
"It is an appetizer for a strategic investment in precious metals. Gold is an
asset everyone should have, between 5 and 15 percent of your liquid assets in
physical gold," he told Reuters in an interview.
DEMAND
Private investor demand for gold is on the rise in Germany and elsewhere as a
result of the financial markets crisis, which has made many investors wary of holding
traditional assets such as equities, bonds or mutual funds investing in such securities.
"In absolute numbers, the demand for physical gold is still tiny in Germany,"
Geissler said. "But in relative terms, the growth is explosive, inquiries have been
doubling every six weeks," Geissler said of the trend in recent months.
TG-Gold-Super-Mark.de's main precious metals business idea is based on
online commerce.
The gold ATMs to be set up at central locations such as airports, railway
stations and shopping malls are intended to gradually accustom people to the idea of
investing in physical gold, Geissler said.
The ATMs will dispense 1-gram, 5-gram and 10-gram pieces of gold as well as
Krugerrand gold coins. Each ATM can hold up to 1,500 pieces, he said.
The company's internet website (http://www.gold-super-mark.de/), through
which investors can purchase units between 1 gram and 1,000 grams, is updating
precious metals prices every 10 minuntes.

26
 The ATMs will be equipped with technology ensuring that the prices charged by
the ATMs keep pace with those on the website.
TG-Gold-Super-Markt.de is a subsidiary of German online investment fund
company INFOS GmbH founded in 1994. INFOS now manages 170 million euros
worth of assets on behalf of about 5,000 customers. ($1=.7337 Euro).
For those of you who speak German here is the original link:
http://www.handelsblatt.com/finanzen/bulle-baer/gold-to-go;2283921

*****
Good & Bad Gold News
Author: John Reade
https://fx1.oanda.com/mod_perl/news/article.pl?id=905546

*****
From a Fellow Subscriber:
Bob,
Adrian Douglas agrees and says the bullish set up currently for gold has never been
so strong during this entire bull market so far. He also rips GFMS a new one in a polite
manner. Adrian uses market force analysis (purchases, price, supply and demand).
Shorts will have to cover. Build up of call options and Morgan and Goldman are buying
calls. Open sentiment is very low but price is holding up do to bullion demand.
The gold stock sentiment is washed out so a move up is imminent. Very large bullion
demand exists. The timing for a huge move up is RIGHT NOW. It will catch even the
most bullish by surprise. There will be no further pull back or seasonal doldrums.
Money coming out of stocks and bonds will blow the roof off the gold market. Silver will
characteristically have a larger move.

http://www.thefinancialtube.com/video/3551/Interview-with-Adrian-Douglas-
marketforceanalysiscom

*****

China holds sway over US$

http://www.nationalpost.com/opinion/columnists/story.html?id=974d25f5-8c5a-4bc2-
a65c-3fbdc12fbdef
*****
Theater of the Absurd:
A View From the Inside
BY ROB KIRBY | MAY 18, 2009
http://www.financialsense.com/Market/kirby/2009/0518.html
*****
From an Interested Reader:
32 million oz of gold - Hi Bob, Russia is going to build railroads and develop mineral
deposits in Mongolia. The joint venture will not develop the deposits like the Oyu
Tolgoi Project (32 million tons of copper and 32 million oz of gold) located in the south
Gobi region 342 miles south of Ulan Bator and 50 miles north of the Chinese-
Mongolian border, but will hold tenders to choose co-investors.
http://en.rian.ru/analysis/20090515/155025973.html

27
(Check out the picture!) Wait a moment. Oyu Tolgoi? Oyu Tolgoi is Ivanhoe Mines
(IVN:TO) territory! Ivanhoe Mines owns the world's largest copper-gold development
project, at Oyu Tolgoi, Mongolia, 80 km north of the China border. Major shareholder
of Ivanhoe Mines is Rio Tinto (NYSE:RTP). Rio Tinto is troubled with debt (38Bln
US$). Chinaco (NYSE:ACH) wants a stake of Rio Tinto. Rio Tinto-Chinalco deal
(19.5Bln US$) gets approval from U.S. regulator just hours ago. What's going on here?
Well I tell you what is going on as I have told about two years ago to the BBC.
Mongolia’s political elite studied in Moscow with the same guys who run Russia today.
They all speak fluent Russian and they are still good friends. In a closed meeting they
decided to get rid of western companies in Mongolia. Ivanhoe Mines struggles since
years to get the mining rights in Oyu Tolgoi with no results so far. And now the
Russians show up and are going to run the show. 32 million tons of copper and 32
million oz of gold will fall into the hands of the Russians (and Chinese) and there is not
much the West can do about it since Mongolia is landlocked and sandwiched between
Russia and China. No chance for the West to get heavy armor into that country. In a
closed meeting between China and Russia some time ago the Chinese agreed to stay
calm on the matter. The Chinese get their share later.

*****

CAPELLA RESOURCES LTD. (CDNX:KPS.V - News)(Other OTC:CPSJF.PK - News)

("Capella" or the "Company") is pleased to report further to the Company's
news release of April 23, 2009, that drilling at its Nevada gold-copper project in
northern Chile is progressing well with three holes completed to date. Weather
conditions continue to remain favourable. The Company has started the fourth and
final drill hole of the season on the project, which is expected to be completed in
approximately one week.
The first drill hole, NV09001, was completed to a depth of 256 meters with the
second hole (NV09002) reaching a depth of 305 meters. Drill hole NV09003
penetrated to a depth of 134 meters when in hole conditions degraded and caused the
hole to be prematurely shut down.
The drill program is testing a combination of magnetic and induced polarization
(IP) geophysical anomalies coincident with intensely altered outcrops. Analytical
results for the program are expected by late June.
Major Drilling Chile S.A. of Santiago, Chile is the chief contractor on the project.
Drilling in northern Chile can typically be conducted until mid-May, before winter
weather sets in and drilling is suspended for the season. The drill program at the
Company's Nevada gold-copper project is expected to recommence in October, 2009
(springtime in Chile).
The Company holds a 100% interest in the Nevada gold-copper project subject
to a 5% net smelter return royalty. The project consists of seven exploration and
exploitation claims comprising approximately 1,900 hectares. Access to the Nevada
gold-copper property is by all-weather gravel and paved roads from Copiapo,
approximately 160 kilometres to the west. The Nevada gold-copper project drill area
lies approximately 10 kilometres south of Kinross's Maricunga gold mine (formerly the
Refugio gold mine) and six kilometres north of Exeter's Caspiche gold-copper project.
Three, relatively short, drill holes were completed in the early 1990's by Minera Mount
Isa Chile S.A. on the Nevada gold-copper property yielding sporadic gold
mineralization. Additional information regarding the historic and current data can be
found on SEDAR (www.sedar.com) or on the Company's website at
www.capellaresources.com.

28
About Capella Resources Ltd.
Capella Resources Ltd. is a publicly traded, junior exploration and mineral
development company with a strong portfolio of precious and base metal projects in
Chile, USA and Atlantic Canada. The Company has a 100% interest in the Lajitas and
Nevada gold-copper properties located in the Maricunga Gold and Copper District and
approximately 700 kilometres northwest of Santiago, Chile. The properties comprise
ten exploration claims and six exploitation claims totalling a cumulative 3,500 hectares
in area. The Company holds a 100% interest in the Tinton Gold Project located 15
kilometres west-northwest of the famous and historic Homestake Mine in the Black
Hills at Lead, South Dakota. The Tinton property consists of 1,270 hectares contained
in 157 unpatented mining claims.
The Company also holds over 24,750 mineral exploration claims covering an
aggregate land area of over 1.04 million acres (422,800 hectares) in Atlantic Canada
(Nova Scotia, New Brunswick and Newfoundland and Labrador).
CAPELLA RESOURCES LTD.
Richard Bachman, Chief Executive Officer, President & Chief Geological Officer

CANADA
*****
From a Fellow Subscriber:
Hi Bob, our Canadian government is raping the people again in large ways
again. Their buddies are charging 95 cents per liter for gas here. That’s $4.28
Canadian per gallon or 3.68 U.S. This is with oil around $57.00 US per barrel & still
close to 2/3 off it’s high. They have conditioned Canadians to just be grateful that the
price is not $1.50 per liter (6.75 per gallon) like last summer. Our gas should be around
65 cents per liter based on the last time oil was $57.00 per barrel. They voted to merge
our GST & PST tax system next summer so that we will be basically paying 13% on
everything including real estate fees. The finance minister calls it "harmonization" and
says it’s for our benefit. Ontario passed the legislation necessary to allow a second tier
of land transfer tax to be imposed. And so the real estate-hating junta running Toronto
did exactly that. Now when you buy a home in 416 countries you have to pay this levy
twice, once to the province and again to the city.
For example, to buy a $500,000 home (which will not even get a half-decent
semi in most areas), the charge is $6,475 for Ontario and $5,725 for Toronto, for a
total theft of $12,200. This, of course, is in addition to city property taxes, provincial
sales taxes and every other tax.
The property taxes on a $400,000 house in my city will be between $5000-
7000 & around $3300 for a $200,000 home. Just the other day the bogus green
energy movement had a law passed that requires home sellers to have a $350.00
energy audit done on their home before they sell it. In Ontario they are planning on
closing many local TV stations so the sheep will all have to watch the news on the
large metro stations hundreds of miles away.
Is it any coincidence that my city is trying to pass a bylaw that will ban selling
bottled water in public places and they are strongly promoting drinking the fluorinated
tap water?
So far our housing market has only softened a little with the fake stock market
rally and super low interest rates but I suspect that a hard far is coming once interest
rates start to go up combined with our insane taxes, more unemployment and many
peoples unemployment insurance running out.
*****
LATIN AMERICA

29
 Brazil’s state development bank is financing the biggest acquisitions in the
country as other sources of credit dry up, driving a consolidation in the meat, ethanol,
paper and telecom industries. ‘They are trying to help the creation of national
champions,’ said Marcello Hallake, a lawyer focused on mergers and acquisitions who
has spent more than a dozen years advising in Latin America. ‘They want to
encourage the formation of large Brazilian companies that could then in turn acquire
outside of Brazil. They could well be moving toward fascism.
The pace of consumer inflation in Brazil's largest city, Sao Paulo, picked up
0.34% in the four weeks ended May 15, unchanged from the previous period, the Fipe
research foundation said Tuesday.
The figure was in line with market forecasts for an increase of between 0.24%
and 0.38%. Fipe, which is affiliated with the University of Sao Paulo, said that food
prices dropped 0.47% in the four weeks ended May 15, unchanged from the four
weeks ended May 7.
Transports prices dropped 0.04% in the period from an increase of 0.01% in
the previous period.
Housing costs picked up 0.08% in the four weeks ended May 15, from a fall of
0.02% in the four weeks ended May 7.
With recent figures indicating inflation is under control and signs of an
economic slowdown, Brazil's central bank cut the Selic base interest rate to 10.25%
from 11.25% last month.

*****
Brazil and China Eye Plan to Axe Dollar
http://cryptogon.com/?p=8629
*****
MEXICO
Mexico’s credit rating may be cut as soon as the third quarter as the global
recession exposes the government’s failure to raise taxes and ease its dependence on
oil income. Mexico was very complacent over the past decade, Alonso Cervera, a
Latin America economist at Credit Suisse, said. The country ‘didn’t really move in a
meaningful way to accomplish the reforms that it needed, he said.
Mexico’s central bank has cut the benchmark interest rate by three quarters of
a point to spur growth for the recession-plagued economy. The bank has lowered the
rate to 5.25% from 6%.

EUROPE

Some 40,000 people marched in Brussels yesterday to demand more

government funds to protect jobs in the European Union, saying too much money was
spent on banks that are responsible for the financial crisis.
The rally, staged by the European Trade Union Confederation, occurred a day
after a similar protest in Madrid and ahead of two more marches in Prague and Berlin
today.
Workers from across the 27-nation European Union voiced anger that
hundreds of billions of euros were being spent on bailing out banks, which they said
were partly responsible for the crisis, rather than to save industrial jobs.
UBS, has hiked the salaries of some investment bankers to guard against staff
poaching by competitors, Switzerland's largest bank said on Sunday.

30
 "There have been off-cycle salary increases at UBS Investment Bank to retain
employees in critical positions," UBS spokesman Andreas Kern said, adding it was
usual to adjust compensation to the market environment.
Earlier on Sunday Swiss paper Sonntag reported that hundreds of UBS
managing directors at the investment bank, with salaries of around 270,000 Swiss
francs ($243,200) on average, were receiving 50 percent higher wages to compensate
for the loss of usual bonuses.
UBS, the world's largest wealth manager in terms of assets, declined to
comment on the details of the article.
The bank is losing key staff in important areas to competitors and had to react,
chairman Kaspar Villiger was reported as saying on Saturday.
Facing public anger over what many regarded as excessive bonuses, UBS
undertook a radical overhaul of its executive pay system last year after its bet on risky
U.S. assets backfired.
On Sunday, paper SonntagsZeitung reported the results of a poll that showed
75 percent of participants would vote in favor of government-imposed restrictions on
management pay in Switzerland. Only 9 percent said they would vote against.
The poll of over 1,000 Swiss voters was carried out for Thomas Minder, a
businessman heading a campaign against excessive management pay.
The campaign has already handed in a petition to the Federal government to
force a national vote on the issue, which could take place in around a year's time but
might have to wait until 2012.
Some 15,000 people from all over Italy took to the streets to express their fears that
Fiat's planned acquisition of the General Motors subsidiary Opel in Germany will lead
to massive job losses. We are Fiat!" was the rallying cry of the employees who
converged May 16 on the group's headquarters in northwestern Turin to demand job
security.
Fiat, Italy's largest private employer with a workforce of some 82,000, has long
symbolized the country's post-war industrial prowess. The march's leading banner
read: "From north to south, Fiat must not develop without us."
The amount of bad debt held by Spanish banks continued to rise in March amid
soaring unemployment and a deepening recession, though the increase was slower
than in recent months, data from the Bank of Spain showed Monday.
Total non-performing loans rose to EUR79.45 billion in March from EUR78.4
billion in February, the data showed. The pool of bad debt was almost four times as
large as in March 2008, when it stood at EUR21.58 billion.
As a percentage of total credit, Spanish NPLs rose to 4.3% in March from 4.2%
in February, and 1.2% in March 2008.
The number of passengers at German airports in the first quarter fell at the
fastest pace in 15 years, the German statistics agency said Monday.
There were 18.7 million passengers at German airports during the first quarter, down
9.3% versus a year earlier.
With the exception of the first quarter of 2002, passenger volumes have risen
steadily over the past 15 years, the agency said. Flights abroad were particularly hard
hit, with passenger volumes dropping 10.8% on the year, while volumes for domestic
flights fell by just 5.5%.
Air cargo loading volumes also fell during the first quarter, by 14.7% on the
year.
Some 2,000 students gathered in Turin on Tuesday to protest against a
meeting of university chancellors from G8 countries and another 11 states, national
media reported.

31
 The protests began on Monday when around 100 students attempted to
obstruct transportation routes in the center and set off smoke bombs. Eggs were also
thrown at police and garbage dumpsters overturned.
The demonstrations ended late Monday after police and protestors clashed,
which injured two demonstrators and one police officer.
The protestors are reported to be shouting anti-government slogans.
"We won't pay for the crisis, we will make a crisis ourselves," some of the
protestors were heard yelling on Tuesday.
Police in the city have been reinforced and security tightened, but there are no
reports of injuries or violent clashes.
The gap between rich and poor is widening in Germany with the east and
northwest lagging clearly behind the south, a study showed today.
German welfare association Der Paritaetische said the number of individuals
living on less than 60 percent of average national income — defined as the poverty
level — had reached 19.5 per cent in the east, and 12.9 per cent in the west in 2007.
Both figures marked an increase on 2006, although the report also showed that
the proportion of people living below the poverty line had fallen slightly in the southern
region — comprising the states of Hesse, Baden-Wuerttemberg and Bavaria.
“Twenty years since the fall of the Berlin wall, Germany is no longer split in two,
it’s split in at least three parts, and in terms of poverty, more divided than ever before,”
said Ulrich Schneider, managing director of Der Paritaetische.
The study showed a clear split between the southern region, with a poverty
level of 10.8 percent, and the northwestern region — including states like Lower
Saxony, Hamburg and North Rhine-Westphalia — where it stood at 14.6 per cent.
More than half the firms in Germany’s DAX blue chip share index are
headquartered in Baden-Wuerttemberg, Bavaria or Hesse, although little more than a
third of the population lives there.
A breakdown of the study results showed that the area known as Western
Pomerania on the northern border with Poland had the highest poverty level — 27 per
cent — compared with just 7.4 per cent in the Black Forest region of southwest
Germany.
“If we don’t take immediate and decisive action, there will be nothing we can do
to prevent whole swaths of the country from completely going to seed,” Schneider
said.
Annual wage growth in Poland's corporate sector slowed to 4.8% in April from
5.7% in March, but was above forecasts, data released Tuesday by the Central
Statistical Office, or GUS, showed.
On the month, April average wages fell 1.1%, after a 4.3% monthly rise in
March. The figures are preliminary and cover Polish companies with more than nine
employees.
Economic expectations in Germany improved sharply in May, indicating that
the country's economic downturn is easing, a survey by the ZEW think-tank showed
Tuesday. The ZEW economic expectations index rose for the seventh straight month,
to 31.1 points from 13.0 points in April, well above economists' forecasts of 20.0
points. That puts the closely-watched index above the historical average of 26.2
points.
"More and more signs indicate that the worst seems to be over," said ZEW
President Wolfgang Franz.
Rumor reaches us that Swiss banks are a mess and that should UBS
degenerate further the government has supposedly decided to let the bank go under. It
is simply too big to save.

32
 The Swiss GDP is getting hit like everyone else is.
In Germany GDP has fallen at twice the speed of the US GDP over the past
two quarters. Hours worked have fallen at 1/3rd the rate of the US. The implied
productivity for the US has been plus 2% and in Germany a minus 9%. We believe the
German and US figures are incorrect.

*****
Thriving Norway Provides an Economics Lesson
http://www.nytimes.com/2009/05/14/business/global/14frugal.html?_r=2&em
*****
Aristocratic Republic
http://www.truthout.org/051909F?n
*****

ENGLAND
The 220 billion pound ($334 billion) hole in U.K. corporate pensions may push
companies to cut dividends, damping the recovery in Europe’s largest stock market.
The 1.17 percentage point drop in corporate bond yields since October is
forcing companies from BT Group Plc to BAE Systems Plc to set aside more cash for
future obligations. London-based BT slashed its dividend by 89 percent last week to
support a plan for more than 340,000 current and retired employees.
More will follow, adding to the biggest dividend reductions in Europe since at
least 1997, according to data compiled by Paris-based Societe Generale SA and UBS
AG in Zurich. U.K. companies are the most susceptible because English corporations
typically run pension funds, unlike the rest of Europe, where the state is responsible for
retirees.
“Pension managers are caught in the perfect storm,” said Chetan Ghosh at
Investment Solutions Ltd. in London, which oversees more than $13.8 billion. “Bond
yields are falling and stocks have not recovered from last year’s sell-off. This will
increasingly be a problem through 2011.”
Dividend reductions would add pressure to share prices already battered by the
global recession and the region’s first annual net gain in equity sales since 2005.
The UK's median wage settlement was steady in the three months to March,
but partial figures for April indicate salary increases are shrinking sharply as the
recession weighs on the labor market, data from Incomes Data Services showed
Monday.
The labor research firm said analysis of 168 settlements covering more than
450,000 employees over the three months to the end of March showed the median
rise was steady at 3.0% after the median for the three months to February was revised
down from a preliminary reading of 3.4%.
But analysis of 78 pay deals for April found the median had slumped to 2.0% -
resuming the drop from 3.8% in the fourth quarter of 2008 - with more than one third of
the settlements being pay freezes, IDS said.
The main influence on the falling median was the rise in the proportion of pay
freezes, which accounted for one fifth of all pay reviews in the March analysis period,
IDS said. But many firms were still delivering wage increases, with one in seven
settlements at 3.0%.
House prices rose on the month for the fourth straight month in early May, and
at the highest pace for the month of May since the survey began in 2003, as some

33
sellers are becoming a little more optimistic about the housing market, property Web
site Rightmove said Monday.
According to Rightmove's latest index, house prices in mid-May rose 2.4% on
the month and fell 6.2% on the year. The annual decline was the smallest since
October.
In April, Rightmove reported a 1.8% monthly increase and a 7.6% fall
compared with a year earlier.
Personal data gathered for the controversial ID cards scheme will be made
available to the taxman.
HM Revenue and Customs officials will be able to trawl through a person's
financial transactions for hints of any undeclared earnings or bank accounts.
The revelation last night renewed fury about the £5.5billion ID cards project.
There was already widespread concern that the Home Office, police and
security officials would have access to the scheme's database.
But campaigners said handing information to tax inspectors was a sinister
development. The powers that give 'Commissioners for Revenue and Customs' access
to the ID cards audit log were buried away in orders laid before Parliament earlier this
week - at the same time as the full extent of the expenses scandal was emerging.
The log records each time a card has been used to verify a person's identity when they
make a big value purchase, open a bank account or take out a mortgage.
If a large number of verifications for big items are recorded, it could signal to
the taxman a person earns more money than they declared. Undeclared second
homes could also lead to higher tax payments.
The audit trail will also include checks made by employers that a person
applying for a job is here legally. This could also make the taxman aware of any
undeclared second occupations.
Phil Booth, of the NO2ID campaign, said: 'It would be hypocrisy of the highest
order for politicians so reluctant to come clean on their own personal finances to pass
legislation that would let the taxman snoop through all of ours.
'The big lie of the ID scheme is that it's for our benefit - the detail shows it's all about
giving the bureaucrats and bean-counters more control.'
The Home Office says the ID card scheme will make life easier for both
businesses and their customers. Companies will be charged around 60p a time to
check details held on the giant 'big brother' database.
Every time a check is made against the ID card, it will be logged on the
National Identity Register - and the details made available to the taxman.
Officials hope for up to 770million 'verifications' each year. The data includes
addresses, any second homes and National Insurance numbers.
Firms will be told that using the scheme will cut millions from their annual fraud
bills and save them hefty fines for employing illegal immigrants.
Officials believe it will be cheaper for companies to confirm identity through the
database than by using current methods such as bills and driving licences. The Home
Office said businesses would need a person's consent to check information about
them.
Official documents reveal that some 44,000 organisations could be 'accredited'
to carry out verification checks.
They range from Whitehall departments, banks and financial institutions to
mobile phone and video rental shops.
It comes after Jacqui Smith's announcement earlier this month that members of the
public will be expected to have their fingerprints taken at the Post Office or in high
street shops and pharmacies when they sign up for a card or passport.

34
 At present, the right to take fingerprints is largely restricted to the police.
Consumer price inflation slowed sharply in April, while retail prices dropped at
their fastest pace since records began in 1948, highlighting the strong disinflationary
pressures facing the economy.
Data from the Office for National Statistics released Tuesday showed that
annual consumer-price-index inflation fell to 2.3% from 2.9% in March, its lowest rate
since January 2008.
April Retail Price Index rises 0.1% on the month and falls 1.2% on the year.

*****
From a Fellow subscriber:
UK Gun Clubs and a few thoughts about the right to bear arms
Dear Bob, some people think the British have been disarmed; the groups listed below
ignored the hype and kept a shootin. It is the patriotic duty of EVERY British subscriber
to join these associations, join your local club and bring along your wife and kids. You
will also have a lot of fun and meet some great people. Get a gun license, and learn
how to shoot. Could it be, that Switzerland remains neutral during WWII because all
Swiss men must own and learn to use a firearm? An army can only fight another army.
Enemies, domestic and foreign are IMPOTENT against a decentralized, well-armed,
well-trained militia. America\'s founding fathers knew this, and they learned it from their
experience of Britain. The British Bill of Rights 1689 says the following about standing
armies and the right to bear arms, clearly, we now need a bill of rights to protect us
against acts of Parliament that extinguish our natural rights, but you will get the gist:
http://avalon.law.yale.edu/17th_century/england.asp - That the raising or keeping a
standing army within the kingdom in time of peace, unless it be with consent of
Parliament, is against law; - That the subjects which are Protestants may have arms
for their defense suitable to their conditions and as allowed by law; National Rifle
association UK: www.nra.org.uk NRA Affiliated Clubs:
http://www.nra.org.uk/common/asp/links/links.asp?site=NRA&amp;cat=4
National Small-bore Rifle Association: www.nsra.co.uk/
UK Association of Rimfire Benchrest Shooting: http://www.benchrest22.org/ BASC -
The British Association for Shooting and Conservation: www.basc.org.uk
The UK Region of the International Practical Shooting Confederation:
www.ukpsa.co.uk
*****

From a Fellow British Subscriber:

Hello Mr. Chapman I listened to you on the Bob Chapman channel at the weekend and
was a little surprised, but it made a lot of sense, you went off into a rant (albeit
justified) about Jim Rodgers, I did hear Rodgers a while back say when questioned
that he believed there was no market or gold manipulation - if there was as he assured
us it would have been exposed because hundreds of people would be in on it, he
didn’t mention the hundreds of newsletter publications not just the IF have been
screaming about this for months eh jimmy boy. I knew he was lying (we make
excuses for people we like its a confidence mans best trick) but I thought it was
because he didn't want to say otherwise because he would loose his reputation or was
afraid he wouldn’t get back on TV (he loves to hear the sound of his own voice), little
did I know he was one as you pointed out of the "boys” bought and paid for as you so
eloquently put it (well I made excuses like crazy for the last few catholic popes while
they dismantled the church and called for a new world order) so you will have to
excuse me, it takes a while to get through to my thick head, but the truth becomes

35
evident in time. Last year Rodgers kept saying the dollar is dead but lo and behold it
rallied (levitated), he kept saying buy commodities and they sank second half of the
year, all this I suppose made him out to be a contrarian who was looking at long time
fundamentals (which was fair enough), but reading the IF and listening to you speak
you really do get an education. This man is one of the smartest operatives the
illuminate have, he comes across as such a jolly good fellow but he is playing us all for
suckers, he didn’t mention the pound last year before it tanked (I bought gold thank
god and made a bundle, which trying to explain to people here in the UK is hard
because they are only looking at gold in dollars they should be reading your
publication lol. Gold went up 34% last year in pounds (it tanked drastically against the
euro also). At one point it was irrelevant if the price of gold went up or down in dollars
because the pound kept falling against the dollar and gold kept rising in UK pounds
before our currency stabilized. At one point I made £5000 in a few weeks in Jan/Feb
and I don't have that big an investment. Sorry back to Rodgers. He didn’t mention the
pound until it fell then he says get out of the pound and lo and behold it stabilizes and
even goes up a little (not much). I’m glad I listened to your show on the Bob Chapman
channel where you also mentioned Marc Faber and Roubini. As I said I got an
education on that one show. Rodgers has changed his tune again, last time I heard
him speak he is holding onto his dollars now, the last of his stash (where does he keep
them under the pillow) but he now says he doesn’t know when the dollar will tank so
he may hang onto them for a bit until it does. That’s as sure a sign as any to buy gold
as I have heard going on this guys past record. The fundamentals for the UK pound
have never been worse. Gordon Brown our beloved non elected prime minister urged
his brethren at the G20 to convince the IMF to sell gold again, every time he does this
it has been followed by huge rises in gold - the guy is the biggest crook and supporter
of gold suppression on the planet and is a great gold barometer (its screaming buy) so
as a UK reader of the IF I’m buying gold and silver again and have just bought some
shares. All the best Mr. Chapman and keep doing the Radio work - our enemies it
seems are legion its hard even for someone like myself to know who is working for
whom (even though I read every scrap of information I can) there are so many
confidence men, it must be very frustration for someone in your position with your
experience to see so many intelligent people otherwise make dumb decisions on the
words of these lying B*******, sorry. I have at last convinced (after a long battle) some
of my family to buy some silver although what they bought was paltry but it’s better
than nothing. This summer it seems is heating up to be very interesting, the games are
afoot and we have ringside seats lets hope we don’t get tossed to the lions.
*****

CHINA

*****
China keeps buying US bonds despite concerns
http://news.smh.com.au/breaking-news-world/china-keeps-buying-us-bonds-despite-
concerns-20090517-b757.html
*****
China’s Stockpiles Are New Sovereign Wealth Strategy, RBC Says
http://www.bloomberg.com/apps/news?pid=20601009&sid=a5yhtDZx75kw
*****

JAPAN

36
 Japan’s economy shrank at a record 15.2 percent annual pace last quarter as
exports collapsed and consumers and businesses cut spending.
The contraction followed a revised fourth-quarter drop of 14.4 percent, the
Cabinet Office said today in Tokyo. Gross domestic product fell 3.5 percent in the year
ended March 31, the most since records began in 1955, confirming that the recession
is Japan’s worst in the postwar era.
Exports plunged an unprecedented 26 percent last quarter, forcing companies
from Toyota Motor Corp. to Hitachi Ltd. to cut production, workers and wages. Stocks
have gained 32 percent since reaching 26-year low in March on speculation worldwide
interest-rate reductions and spending by governments will halt the slide in the world’s
second-largest economy.

AUSTRALIA AND NEW ZEALAND

New Zealand home sales rose in April from a year earlier, adding to signs that
falling interest rates and prices are helping the property market recover. Sales
increased 39.6% to 6,210 last month from 4,450 in April last year.
Australia’s government plans to sell a record A$60 billion ($45.6 billion) of
bonds in the 12 months to June 2010. The amount is almost double an estimated
A$35 billion of debt sales in the 2008-2009 fiscal year and up from A$5.1 billion issued
in 2007-2008.
Australia faces record budget deficits until 2016 as it embarks on the biggest
building program in its history, spending on roads, rail lines and high-speed Internet to
blunt fallout from the global recession.

HEALTH
THE BUGS ARE HERE
In August of 2008 I warned you that we would have a resurgence of pests to afflict us.
Last August I informed you that Italy had a bug problem and anyone traveling to
Europe to please take precautions. Italy had a problem with ticks, fleas and lice. If you
were traveling there you would not be protected even in first-class accommodations -
they were infested too. To entertain the thought of a swarm of bugs in the broad sense
of our society is upsetting. As I predicted, America now has bugs. Right now there’s a
surge of bed bugs and I fear the lice and fleas are not far behind. How did I know?
When difficult times hit, food is more expensive and scarce, people become
malnourished and become hosts to bugs. Lately water has become more expensive as
cities across American charge more for water due to last year’s droughts. In tent cities
across American water is saved for drinking and personal hygiene is sacrificed. We
are at greater risk of bed bugs, fleas, lice and ticks when we sleep with our animals to
stay warm. Parasitical infestations and disease will also appear when sanitary
conditions erode.

HEAR YE! HEAR YE!

Right now there are over 400 newspapers across America reporting that their towns
and cities have blood-sucking bed bugs. Please don’t misunderstand, the homeless
shelters are not the only ones affected. Main Street USA is being eaten alive by
pesticide- resistant bed bugs. Neighborhood homes, apartment buildings, hotels,
college dorms are crawling with bed bugs. Just five years ago the Department of
Health had few if any reports of bed bugs in America. Now there is a 70% increase in

37
reporting. However, it isn’t to the point that you will look up into the sky and see a
swarm descend on your town.

THE 21ST CENTURY PEST

The University of Kentucky conducted a survey for Pest Management Professional on
bed bug infestations. A large percentage of those surveyed (91%) reported that their
organizations encountered bed bugs the last two years compared to just 37% over the
past five years. Further investigation by the National Pest Management Association
showed that pest control companies in small towns, who rarely received calls to treat
for bed bugs, are now fielding dozens of calls. These same professionals in large cities
receive upwards to 150 calls a week. The Institute of Biology in London published a
study on bed bugs authored by Clive Boase. Since 1996, London has had a tenfold
increase in bed bugs. Australia also has a bed bug problem. National Geographic
News reported a 700% increase between 2000 and 2004 in pest control treatment for
bed bugs in Australia. During that same timeframe American has had a 500%
increase. Last year every state in the US reported an exponential increase in bed bug
infestation.

GRADMA’S ADVICE
Post WW II, the use of DDT was outlawed to kill pests. So, what did our grandparents
do to control these little critters? Well, grandma didn’t tell you to “Sleep tight; don’t let
the bed bugs bite” for nothing. Pre WW II, bed bugs were more common. Metal frame
beds were thought to harbor fewer bed bugs. Arsenic-laced wallpaper was used to
help kill bed bugs. Twice annually beds were dismantled, scrubbed down and
mattresses cleaned to cut down on bed bugs.

THE BED BUG

Bed bugs are the size of a grain of rice, are round, flat and have a brown-reddish color.
They can easily hide between mattresses, cracks and crevices and emerge at night to
feed on human blood. They are easily transported on the human body and articles of
clothing, luggage etc. Think of the U-Haul you rent or the temporary storage facility
that can infest your belongings if they are not cleaned properly. Immigrants think
nothing of selling used mattresses, which can be infested with bed bugs. The female
bed bug lays 500 eggs during its 12-month lifespan. Eggs hatch in 4 to 12 days and
reach adult status in a month. Therefore just a few of these little critters can lead to an
infestation in a skinny minute. Be aware and know what kind of bugs you may have.
Richard Pollack, Harvard University Entomologist, says people often times mistake
bed bugs for something else when they may in fact have carpet beetles, lice, fleas,
ticks, chiggers or mites.

SYMPTOMS & NEW FUMIGATION

The bed bug bite leaves a red, itchy welt and does not transmit disease. Know that
some physicians will misdiagnosis these bites and you may need to get confirmation
from an entomologist. Before you move out of your home and cover your house with a
fumigating tent - you have other options. If your entire house in infested, the new
technology is to cryonite your house. What’s that? It is a non-toxic carbon dioxide
vapor, which is pumped into your home to freeze the bugs and eggs.

FOLK TREATMENTS
In the ancient world they couldn’t freeze an ice cube let along an entire house. So,
what did they do hundred’s of years ago? It is said that they used garlic and oregano

38
and boiled it to use against pests such as lice and bed bugs. The sulfur in garlic is
most likely what repels the bugs. Give your pet garlic and brewers yeast mixed in their
food and fleas and tics won’t feed on your pets because they don’t like the taste of
their blood. The ancients also used eucalyptus, pennyroyal and rue to keep bugs
away.

WHAT YOU CAN DO

The modern bed bug is pesticide resistant. The pesticides that do kill bed bugs cause
cancer in humans and are illegal. So, what can you do to deter bed bugs and protect
yourself? Be prepared and have a stash of back-up food, water and herbal medicines
with a 10-year shelf life to keep you clean and healthy. Have on hand pesticide-free
bug treatments such as the Flea N Tic B Gone containing proven plant enzymes to
prevent bug infestation. You can take this with you when you travel and spray the
bedding and luggage. Pet collars and shampoo with eucalyptus and other natural
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39
SURVIVAL ITEMS – STAND-UP FOOD POUCHES (NOW SAVE 15% CALL NOW)
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*****
From an Interested Reader:
Subject: Hospital to the World Welcomes Illegals and Contagious Diseases
Hi,
Before her death, Madeleine Cosman made important contributions to the literature on
illegal aliens and disease. Assuming that the bird-pig-human flu virus is a real threat
and not just a dry-run emergency run up to see what would happen, Dr. Cosman's
warning is right on target. It is an honor to copy her 4-year old article on the immigrant
burden on US healthcare.

In only the last few years, more than 80 hospitals in southern California have closed,
bankrupts because of uncompensated healthcare for illegal aliens. Taxpayers could
not afford the burden. America's own poor are now less well served because, as Dr.
Cosman knew, the United States attempts to be the hospital to the world.

http://www.newswithviews.com/Cosman/madeleine3.htm
by Late Dr. Madeleine Cosman

*****
From a Fellow Subscriber:
See Bob, I got this in my holistic Medicine email.
SAY "NO" TO FORCED VACCINATIONS
Hi Everyone:
Free bumper stickers are still going out all over the world. Requests have come from
as far as Russia and Lithuania. The Vaccination promoters are not limiting their
shenanigans to the US. They have a long reach. Forced vaccinations for people
around the world is being accomplished by our pharmaceutical industry here in the US.
In countries all over the world, authorities are being persuaded and convinced to have
their people vaccinated, by force, if necessary. The drug industry has a long reach and
has won it's first step.

The next step is FORCED MEDICINE for all Americans.

40
This week, a judge, in an American Court, refused to allow a patient to use a natural
remedy for his cancer. The patient was ordered by the court to use chemotherapy in
spite of the patients rebellion against an outrageous medical treatment.

We have been sold out by everyone. The courts, the media, the politicians. All we
have left is word of mouth. LET'S USE IT!

I am not asking for donations at this time. I am asking that every single person who
cherishes freedom, take the time to get a copy of the book, "THE GREAT WHITE
HOAX". It tells everything. It is clear and convincing. Enough sales wil persuade others
to acquire the book. Then the word will get out, and we will have a strong enough fight
to impede those who would force their vile products on us.

Purchase of a small book does not seem enough to defeat such a ravenous and
aggressive industry.

I suggest that it's the best weapon we have, and that we can win!

Bob Catalano
www.medicine-no.com
phone: 617-325-0591
At this time the book, "THE GREAT WHITE HOAX" by Robert E. Catalano, can be
acquired from the iUniverse, Amazon Books and Barnes and Noble websites.
Thanks for joining in the fight. "If we give up one freedom, we may soon lose them all!"
*****

This Antioxidant Can Smash Insulin Resistance and Autoimmune Disease

http://articles.mercola.com/sites/articles/archive/2009/05/16/This-Antioxidant-
Can-Smash-Insulin-Resistance-and-Autoimmune-Disease.aspx
*****

NEXT SCHEDULED ISSUES

SATURDAY, MAY 23, 2009
WEDNESDAY, MAY 27, 2009
SATURDAY, MAY 30, 2009

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