THE INTERNATIONAL FORECASTER

SATURDAY, JUNE 13, 2009

061309(4)_IF
P. O. Box 510518, Punta Gorda, FL 33951-0518
An international financial, economic, political and social commentary.

Published and Edited by: Bob Chapman

NOTE: NEW E-MAIL ADDRESSES
For correspondence to Bob: bob@intforecaster.com
For subscription and renewal: info@intforecaster.com

CHECK OUT OUR WEBSITE

www.theinternationalforecaster.com
1-YEAR $159.95 U.S. Funds
US AND CANADIAN SUBSCRIBERS: Make check payable to Robert Chapman (NOT International Forecaster), and
mail to P.O. Box 510518, Punta Gorda, FL 33951-0518. Please include name, address, telephone number and e-
mail address.
Or:
We accept Visa and MasterCard charges. Provide us with your card number and expiration date. We will charge
your card US$159.95 for a one-year subscription.

You can email us in two separate emails (1- the Credit Card Number with full name, address and your
telephone number and (2- the Expiration date on the card.

NON US OR CANADIANS SUBSCRIBERS:

Due to the time that it takes for your mail to arrive to us from a foreign country, we would like for you to email us
as above the CC information in two separate emails.

Note: We publish twice a month by surface mail or twice a week by E-mail. bob@intforecaster.com
or info@intforecaster.com

RADIO APPEARANCES:
To check out all of our radio appearances click on this link below:
http://www.theinternationalforecaster.com/radio

Discount Gold & Silver Trading Co.

For the best in pricing and service for gold and silver coins, call Melody at 1-800-375-
4188. Be sure to listen to DGSTC with Bob Chapman live on Short-wave 7.415Mhz M-F
4:00PM ET, Replays Tuesday thru Friday 8pm RT 7.465Mhz
3.215 MHz M-F 11PM ET and weekly archives at discountgoldandsilvertrading.net
JOHN STADTMILLER – Republic Broadcasting Network www.republicbroadcasting.org – every Tues. at
5:00-7:00 pm EST
GOLDSEEK RADIO – Every Thursday
SAM BUSHMAN - LRT Radio http://www.libertyroundtable.com
Every first and third Monday of the month 10 am to 11 am
DALE WILLIAMS - Free West Radio Program – http://www.freewestradio.com - Every first Tuesday of
Month
JOHN BRYANT– 7 p.m. EDT - network www.firstamendmentradio.com
Dr. STAN MONTEITH - Every Monday 4 p.m. & 8 p.m. PST in month of June.
www.radioliberty.com, or to our shortwave broadcasts on WHRI at 5.745 MH weekdays from 3-5 pm and 8-
10 pm Pacific Time 5070 and 7465. Shortwave: Daily M-F 3:00 - 4:00 PM: PST 5.070 Mhz 4:00 - 5:00 PM:
PST 7.465 Mhz 8:00 - 9:00 PM: PST 5.875 & 6.110 Mhz
THE MERIA HELLER SHOW –every 2nd Tuesday of the month –
THE POWER HOUR– GCN.live.com – Every Monday in June. – Mon thru Fri 8 to 11 am EST, 7490
PAT GORMAN – Sunday June 5. 20009
Stephen Lendman – July 15, 2009
ALEX JONES - GCN.live.com -Noon on shortwave 1st hour: WWCR 9.985 and 2nd & 3rd Hour:
Every Friday – noon CST. WWCR 9975 - Here are some of the recent Alex Jones shows that Bob has
appeared on. Mon thru Fri Noon to 4 pm EST, 12160

1
http://www.youtube.com/watch?v=JIQ1Qrv_AUE
RAYELAN ALLAN – Every first and third Wednesday in June.
BUTCH PAUGH – Wednesday, June 24th, 2009 9 p.m. EST - Also on your computer on www.gcnlive.com
<http://www.gcnlive.com/> . LIVE FM STATIONS 9:00 PM EST.-88.3 FM ROTX Campbell, TX- 92.7 FM
Lexingon TN-102.9 FM in Lutz, FL-89.7 FM Nettie, WV-89.7 FM North Branch, MN-91.9 FM Kerrville, TX-
97.5 FM Dallas, TX-91.1 FM Austin, TX-97.5-91.1 FM Austin, TX-91.7 FM Fredericksburg, TX-91.7 FM
Johnson City, TX-90.1 FM Round Rock, TX-90.1 FM Austin, TX-96.3 FM Austin, TX-95.7 FM Dallas, TX-
93.3 FM Valparaiso, IN-90.7 & 88.5 FM Cosby, TN-88.3 FM Meadsville, PA-100.3 FM Kamia, ID-89.7 FM
Presque Isle ME-97.7 FM Greenville, SC-107.1 FM Oklahoma City, OK-90.1 FM Gatlinburg, TN-102.7 FM
Tampa, FL-KGGM 93.5 FM Delhi, LA LIVE AM STATIONS 9:00 EST.-WIJD 1270 AM Mobile, AL, KIOU
1480 AM Shreveport, LA,WFAM 1050 AM Augusta, GA-WELP 1360 AM Greenville, SC-WCPC 940 AM
Tupelo, MS-WROL 1340 Providence, RI-WITK 1550 AM in Scranton/Wilkesboro, PA-WNNY 1090 AM
Pensacola, FL-WARL 1320 AM Attleboro, MA-1380 WLRM AM Chattanooga, TN-WYYC 1250 AM York, PA-
WNVY 1070 AM Pensacola, FL-KGEZ 1600 AM Kalispell, MT REBROADCAST FM STATIONS- 91.9 FM
Macon, GA 7:00 AM-91.9 FM Freedom radio Jones City, GA 8:00 AM Est. REBROADCAST AM
STATIONS-KCKN AM 1020 Roswell, NM 10 PM Est.-KMET 1490 AM 11 AM Pst. - WASB 1590 AM
Brockport, NY 5-6 PM Est.- WRSB 1310 AM Canandaigua, NY 5-6 PM Est.-WBCR 1470 AM in Alcoa, TN 7-
8 AM Est.-WVOG 600 AM New Orleans, LA 5:00 PM Est.
ALAN STANG: radio show, The Sting of Stang, airs from 11 a.m. to 1 p.m. Central, M-F, via Republic
Broadcasting Network. Call him on the air at (800) 313-9443. To listen, go to republicbroadcasting.org and
click on Listen Live. If you can't listen at that time, do so via the archives. I'll be talking about the various
manifestations of the conspiracy for world government, its tactics, such as the illegal alien invasion, its
purposes and its players, from Jorge W. Boosh on down.]
ERSKINE: Thursday, - every 3rd Thursday – 2:00 pm CST GCN.live.com
Drew Raines: - Every Thursday
Those of you interested in the latest input concerning the world financial interest and what to do
during these times of financial unrest .
TODAY AND EVERY THRUSDAY we have for your pleasure Mr. Bob Chapman founder/editor of
"The International Forecaster" http://www.theinternationalforecaster.com
4pm-5pm Chicago time zone USA
listen live www.amd.elequity.com
"Clilck on "Current Show / Listen Live" this show is accessible as current show for 20 hours after
production and on demand from the archive direct link and as "Archives & on Demand" any
Thursday date is Mr. Bob Chapman's show.
*** all shows are FREE to access & download ***
2nd Hour Colorado, Al and Drew discuss the perspective of News & Events around the world and
the attacks on our Constitutional Rights to live in Liberty growing our Organic Foods and Herbs
for our safety & our health also available on 11 international phone bridges around the world
USA: 347-308-8047 -bridge code 48334.
Drew can be reached at 501-565-1833.
http://www.youtube.com/watch?v=hesYUFCe2_U
GNC-LIVE FREQUENCIES:
http://www.gcnlive.com/Schedule_Shortwave.html
KEVIN GALLAGHER & John McGowan – Every first Friday at 9 pm EST.
Bruce McDonald - The Politics of Common Sense: 6-8 p.m. CST
bruce@kickthemallout.com
Rob Johnson – on Pappas Telecommunications’ -840 KMPH. Stockton/Modesto, CA
–
June 9th and June 25th. – and July 14th and July 30th.
Lets Get Real With Reuben Torres " is an open forum where topics on politics,
immigration, health, education, and other global issues, that affect our country and the
world at large, are discussed and debated at local, national, and global levels. "Lets Get
Real With Reuben Torres "airs every Tuesday evening from 9:00 pm to 10:00 pm unless
otherwise noted. - Next appearance: June 23rd
Farren Shoaf –June 9th, 2009–The Real News Radio
.
*****

2
Radio Liberty part 1 <http://www.youtube.com/watch?v=lZRH2CtEu2k>
RBN Part 1 <http://www.youtube.com/watch?v=iZ-aBsFdJpY>
http://www.youtube.com/user/TheBobChapmanChannel
http://www.youtube.com/watch?v=cYjLAgKfLrM

For a Few Bailout's More

http://www.youtube.com/watch?v=qq8-HydyftA&feature=channel_page

Billions more needed for financial rescue

http://www.youtube.com/watch?v=3lLkq7P2BXM&feature=channel_page

http://www.clipser.com/profile.php?member=TheBobChapmanChannel

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

"The budget should be balanced, the Treasury should be refilled, public

debt should be reduced, the arrogance of officialdom should be
tempered and controlled, and the assistance to foreign lands should be
curtailed lest Rome become bankrupt. People must again learn to work,
instead of living on public assistance." - Cicero - 55 BC

US MARKETS
The big question is how long can the dollar last as the world’s reserve
currency? Needless to say, that is not an easy question to answer. We recently called
the top on the dollar at 89.50 on the USDX. The USDX is six currencies versus the
dollar on a weighted basis. More than a year ago the dollar hit a low on the USDX at
71.18. A phenomenal rally ensued from that level expedited by de-leveraging and the
closing out positions within the carry trade. A good example of the carry trade was
when a bank in NYC borrowed yen. At ½% interest, sold the yen for dollars and bought
dollar denominated securities.
All of that is now history as the dollar comes under increasing pressure. We
believe the dollar could test 71.18 this year. We also believe the dollar could break
down to 40 to 55 over the next few years. The collapse of the dollar is certain. The
Treasury and the Fed have committed the American taxpayer to $13.8 trillion of debt
and before the dollar goes where it is ultimately going that figure could reach $30
trillion.
In modern times such fiscal and monetary irresponsibility is unparalleled. This
abdication of moral responsibility has already begun the process of dollar deterioration
and rising interest rates. The result will soon be hyperinflation.
The collapse may be disastrous for all countries, but it is going to be equally
disastrous for the corrupt who have brought us to this sad situation. Hopefully as
painful as it will be it could create many new opportunities for some. One thing we see
as certain is that the elitists will find themselves targets of civil and criminal charges
and targets of contempt and derision. The new world order they so arrogantly and
confidentially predicted with one world government will again have been a failure.
There is no question where China is headed in this currency war to dump the
dollar. They continue to accumulate gold with the intention of having a gold backed
currency - something America is, we believe, incapable of doing. Such an ongoing
pressing event has to put continual downward pressure on the dollar. China is already

3
by passing the dollar reserve system by settling in other currencies, using barter and
through swap arrangements, major changes are in the process of taking place. We do
not believe the yuan will be the reserve currency of the future. A better idea is to have
a weighted basket of 10 major currencies as a world benchmark. China is heavily
dependent on exports and as yet does not have domestic demand to relieve pressure
when exports fall. They are also still a dictatorial, communist society in power by force.
They also still have an enormous population and wages are still dreadful even though
they have increased 10-fold over the past 15 years. Politically both China and the US
face populations that are profoundly unhappy and if major changes are not made in
both societies, both are ripe for revolution.
Wednesday’s 10-year Treasury auction wasn’t all it was cracked up to be. The
yield was 3.99% with 46.8% allotted at the high bid. The bid/cover was 2.62 versus the
average of the past ten auctions of 2.40. Indirect participation, of foreign central banks
was 34.2% versus an average of the past ten auctions of 28.23%. The only reason the
sale went well was that the note had to be lifted 13 bps to 3.99% in order to attract
buyers. In addition the Fed had to buy $3.5 billion in longer term maturity bonds and
prop up the auction. They cannot fool us. The system sinks into deeper trouble every
day. All we can say is you had better own gold and silver. What the Fed did was buy
18.4% of the auction with money they created out of thin air – more monetization.
Goldman Sachs CEO, Lloyd Blankfein says he believes the current upturn in
world markets was probably not a full recovery from crisis and said he expects a
further long recession. There is no reason to think this is it – so many things have to be
sorted out. Why, would this be the recovery?
Nouriel Roubini says those are yellow weeds, not green shoots. He has nine
reasons for pessimism. Employment is still falling sharply, which is bad news for
consumption and the size of bank losses. He said this is a crisis of solvency, not just
liquidity, but true de-leveraging has not really started, because private debts of
households, financial institutions, and corporations are not being reduced, but rather
socialized. Lack of de-leveraging will limit the ability of banks to lend, households to
spend and firms to invest.
In countries running current account deficits, consumers need to cut spending
and save much more for many years. Consumers have been hit by a wealth shock,
that is falling house prices, stock market, rising debt-service ratios, and falling incomes
and employment.
The financial system has been severely damaged, so the credit crunch will not
ease quickly.
Profitable, owing to high debts and default risk, low economic and revenue
growth and persistent deflationary pressure on companies margins businesses, will
continue to be constrained from willingness to produce, hire workers, and invest.
Rising government debt ratios will eventually lead to increases in real interest
rates that may crowd out government spending and even lead to sovereign refinancing
risk.
The monetization of fiscal deficits is not inflationary in the short run – slack
production and labor markets imply massive deflationary forces. If banks do not find a
clear exit strategy from policies that double or triple the monetary base, eventually
either goods price inflation or another dangerous asset and credit bubble, or both, will
ensue.
We’ll interject here that we disagree with Mr. Roubini. That monetization
causes inflation immediately, which later becomes hyperinflation. The central banks,
the Fed in our case, have no clear exit strategy. What they have done and are doing
has no fallback or battle orders for withdrawal.

4
 Some emerging market economies with weaker economic fundamentals may
not be able to avoid a severe financial crisis, despite massive IMF support.
Our comment is no one is going to escape. Decoupling is a myth and we’ve
had that proven already.
At the beginning of the year the yield on the 10-year T-note was 2.35%. We
figured it would go to 3.50%. Thus far it has gained to 4.00%. That is 1.65% in less
than six months. The yield has risen 135 points since the Fed announced in March that
it was going to buy Treasuries, some $300 billion worth for starters.
Rates are up due to $2.2 trillion in monetization, that they are already
committed to, and that is just the beginning. Commodity prices in many instances have
doubled, inflation expectations are high, equity prices are up 30% plus and gold and
silver have remained strong so it is no wonder rates in the real market have moved
substantially higher.
Massive new issuance will be high for sometime to come.
Retail gasoline prices have moved up more than 40 days in a row as gas rose
$1.00 from its lows. That displaces $130 billion in discressionary spending.
The high rates have also caused a 60% fall in mortgage refinancing.
Subprime problems may generally be over but we have another year of ALT-A
loans and three more years of Option-ARM, pick-and-pay loans to get through. In the
first quarter due to rising unemployment 50% of foreclosures were concentrated in
prime mortgages where the default rate is now 2.40%, more than double 1.10% yoy.
Over the next few years this problem will worsen.
Home mortgage debt outstanding was 73% of GDP last year, the 3rd highest
reading on record, after the 75% plus bubble years of 2006 and 2007. In order to
return this debt to the average of the 1990s at 46%, Americans would have to cut
margin debt to $6.6 trillion from $10.5 trillion. The solution to reduce such debt is to
rebuild sayings and for banks to boost capital. We see little chance of either
happening, hence the inevitable result.
As we know with the result of down payments, mortgage defaults proliferated.
In a desperate attempt to buoy the housing market our government has brought back
those same loans. This is monetizing an $8,000 tax credit. The FHA steers funds to
cover closing costs directly – in some cases even offsetting the 3.5% minimum down
payment FHA loans require. That is enough to cover most or all of the down payment
and fees for homes up to the median price, now about $169,000. As you can see the
government anxious to move foreclosed properties for the banks are breaking the
rules and creating another subprime crisis. The NAHB says this will add 160,000
original sales. The FHA doesn’t care. Fifty percent will default. If they run out of money
they’ll get another $500 billion from Congress, so that minorities can buy homes.
Special interests are still alive and well in Washington buying legislation or
arranging for legislation to never see the light of day. Our president signed the
“Helping Families Save their Homes Act,” but it was missing its centerpiece: a change
in bankruptcy laws he once championed that would have given judges the power to
lower the amount owed on a home loan - Mr. Obama forgot to mention that in the bill-
signing ceremony. It had been stripped out as Senators heeled to their masters, the
banks. The same banks that US taxpayers are bailing out. This shows you the
stranglehold banks have on Congress. They simply own them. We’ll see as Ron Paul’s
HR 1207 proceeds. He has 213 co-sponsors and 218 takes the legislation out of
committee. The banks spent millions of dollars defeating part of the Homes Act bill.
Money, which the taxpayers lent to them. That part of the legislation was removed
because our president refused to lift a finger to keep it in the bill. As you probably

5
know, bankers, Wall Street and other elitists financed the president’s campaign in
great part.
The bottom line is the issue would have cut into profits on loans the banks
should have never made in the first place. They Are the professionals, so they were
90% responsible.
The solution to this is to put an end to lobbying and campaign contributions.
Have government fund elections. Everyone gets the same amount and campaigns on
the issues.
Bank nationalizations are “absolutely necessary” to stop them damaging the
financial system further with more losses, said Nassim Nicholas Taleb, author of the
best-selling finance book “The Black Swan.”
“You cannot trust the banks in taking risks,” Taleb said in an interview with
Bloomberg Television in Davos. “We have a very strange situation in which it’s the
worst of capitalism and socialism, a situation in which profits were privatized and
losses were socialized. We taxpayers have the worst.”
The global economy will slow close to a halt this year as more than $2 trillion of
bad assets in the U.S. help sink economies from there to the U.K. and Japan, the
International Monetary Fund said yesterday. Taleb echoed comments from New York
University Professor Nouriel Roubini, who says the majority of U.S. banks are
insolvent.
“You have to eventually nationalize U.S. banks, you have to take the problem
by the horns,” Roubini told Bloomberg Television in Davos today. “In my view actually
most of the U.S. banking system is insolvent.”
Roubini, a former economist in President Bill Clinton’s White House, predicted
the financial crisis as early as July 2006. Last February he forecast a “catastrophic”
meltdown that central bankers would fail to prevent, leading to the bankruptcy of large
banks with mortgage holdings.
Rare and unforeseen events are known as “black swans,” after Taleb’s book,
“The Black Swan: The Impact of the Highly Improbable.” It was published in May 2007,
about three months before the credit crunch rocked global markets and led banks to
announce more than $1 trillion of writedowns and credit losses.
“We should not trust these bankers; look at their track record,” Taleb said.
“They know we’re going to bail them out. They hold us as hostages” and “the only way
to stop the process is for the government to own those banks, tell them what to do.”
Taleb today signaled he favors curbs on the trading of some financial
instruments. House of Representatives Agriculture Committee Chairman Collin
Peterson of Minnesota circulated an updated draft bill yesterday that would ban credit-
default swap trading unless investors owned the underlying bonds. That might prohibit
most trading in their $29 trillion market.
“I don’t like credit default swaps,” Taleb said. “We should probably stop trading
derivatives, anything more complex than regular options” because “I am an options
trader, and I don’t understand options. How do you want a regulator to understand
them?”
As the founder of New York-based Empirica LLC, a hedge-fund firm he ran for
six years before closing it in 2004, Taleb built a strategy based on options trading to
bullet-proof investors from market blowups while profiting from big rallies.
He now advises Universa Investments LP, a Santa Monica, California-based
firm opened in 2007 by Mark Spitznagel, Taleb’s former trading partner, using some of
the same strategies they’d run since 1999.
The Fed's beige book survey released Wednesday shows that economic
conditions remained weak and even deteriorated in many regions of the country, with

6
commercial real estate and labor markets continuing to face challenges.
MetLife Inc. Chief Investment Officer Steven Kandarian said commercial
mortgage defaults will rise in the next two to three years after the economic slump
subsides.
“The worst is to come,” Kandarian said in an interview today with Bloomberg
Television in New York, where the biggest U.S. life insurer is baseand when the
defaults actually occur.”
After the Fed initially refused to comply with the committee’s request for
documents and e-mails in the matter, the committee took the extraordinary step of
issuing a subpoena on Tuesday to obtain material from the Fed that concerned the
deal…
The Financial Times has learned that Mr Bernanke, in an e-mail, described Mr
Lewis’s threat to invoke the “MAC” clause as a “bargaining chip”, and a “foolish move”,
before concluding that “the regulators will not condone it”.
The state Legislature is moving to make federal immigration issues a matter of
state law, a change that could mean jail time for illegal immigrants.
Under a bill approved by a committee Tuesday, being in the country illegally -
historically considered a federal matter - would become a state misdemeanor. A
second offense would be a felony.
That would mean illegal immigrants found in Arizona could be arrested by local
police, accused by local prosecutors and be put behind bars, rather than being turned
over to U.S. officials for deportation.
On an 8-3 vote, the Senate Appropriations committee recommended Senate
Bill 1162 be approved. The bill originated as a measure to renew funds for Maricopa
County Sheriff's Office anti-illegal immigration efforts, but an amendment added
Tuesday would create the new state trespassing law. The provisions of the bill fit
into an overall strategy long sought by opponents of illegal immigration, who want state
penalties for what are now federal crimes.
This, they say, will make it easier for local officials to fight illegal immigration
and provide jail time for a crime they say too often goes unpunished.
Mortgage applications fell last week to the lowest level since February as a
jump in borrowing costs discouraged refinancing and signaled that Federal Reserve
Chairman Ben S. Bernanke’s efforts to cap rates is stalling.
The Mortgage Bankers Association’s index of applications to purchase a home
or refinance dropped 7.2 percent to 611 in the week ended June 5, from 658.7 the
prior week. The refinancing gauge fell 12 percent. The purchase index gained 1.1
percent.
The yield on the benchmark 10-year Treasury note rose to 3.90 percent last
week as volatility in government bonds hit a six-month high, according to Merrill Lynch
& Co.’s MOVE Index of options prices. Thirty-year fixed-rate mortgages jumped to 5.45
percent from as low as 4.85 percent in April, according to Bankrate.com in North Palm
Beach, Florida. Costs for homebuyers are now higher than in December.
The mortgage bankers’ refinancing gauge issued today fell to 2,605.7, the
lowest level since November, from 2,953.6 the previous week, today’s report showed.
The purchase index rose to 270.7 last week from 267.7.
The share of applicants seeking to refinance loans fell to 59.4 percent of total
applications last week from 62.4 percent.
The average rate on a 30-year fixed-rate loan surged to 5.57 percent, the highest
since November, from 5.25 percent the prior week.
Casino-resort developer Fontainebleau Las Vegas LLC said Tuesday it has
filed for Chapter 11 bankruptcy protection after failing to get certain lenders to provide

7
about $800 million in construction funding to complete the company's $2.9 billion
property on the Las Vegas Strip.
Fontainebleau Las Vegas had filed a $3 billion lawsuit in April against Bank of
America, JPMorgan Chase Bank, Deutsche Bank Trust Company Americas and eight
other lenders in an effort to access the prearranged financing to pay its 3,000
construction workers and finish the project, which is 70 percent complete and had
eyed an October opening.
The complaint alleged that the lenders terminated their agreement to provide
an $800 million revolver loan due to one or more unspecified ''events of default'' by
Fontainebleau. But the developers said they didn't default on any part of their
agreement. Bank of America spokeswoman Shirley Norton told The Associated Press
in April that the bank was discussing ''restructured financing'' with the company.
The lawsuit was amended last month to charge that one of the lenders,
Deutsche Bank, purposely interfered with contracts because the bank owns a rival
resort also being built on the Strip, which is projected to open in 2010. The company is
demanding additional damages from the bank.
''It is unfortunate that our lenders forced us to take this step. By reneging on the
revolving credit facility, they effectively shut down the project and put thousands of
people out of work,'' said Howard Karawan, chief restructuring officer of Fontainebleau
Las Vegas. ''Our goal now is to secure funding to complete this world-class project and
restructure our existing debt.''
Fontainebleau Las Vegas said its other lenders have agreed to let the company
use cash during its bankruptcy case, and the company is in talks to obtain financing to
restart construction at the 3,900-room resort. The Chapter 11 filing includes affiliates
Fontainebleau Las Vegas Holdings LLC and Fontainebleau Las Vegas Capital Corp.
Oakland California has serious budget troubles. In a closed door city council
session, Oakland Mulls Bankruptcy.
"We have asked the (bankruptcy) question because we wanted to know the impact,"
said District 5 council member Ignacio De La Fuente. "In closed session, the question
has been asked, and an answer was given." He would not elaborate. "It's a possibility,"
he acknowledged. "Things are that bad."
Foreclosure filings dipped 6 percent in the month but increased 18 percent
from May 2008, marking the third highest month on record.
"There were almost one million foreclosure filings in a three-month period, and
that's simply unprecedented," Rick Sharga, senior vice president at RealtyTrac in
Irvine, California, said in an interview.
Temporary freezes on foreclosure activity ended in March. Failures of many
seriously delinquent loans that were put on hold during those moratoria have been
thrust back into the foreclosure cycle.
One in every 398 households with loans got a foreclosure filing in May. Filings,
which include notices of default and auctions, were reported on 321,480 properties last
month.
Stemming foreclosures is seen critical to bolstering home prices, consumer
confidence and the recessionary U.S. economy.
Bank repossessions, known as real-estate owned or REOs, rose in May and should
spike in coming months because the moratoria ended, RealtyTrac said.
Schools across the Valley are measuring the depth of Arizona's downturn in
the cafeteria lunch line: A rising number of students has applied for free lunches, and
more parents are failing to pay what they owe on the lunch bill.
The percentage of students who received free lunches at Arizona schools
jumped by 11.3 percent from February 2008 to February 2009, the latest month with

8
data verified by the federal government, a USA Today analysis reported. Arizona,
which had 394,977 students receiving free lunches, was one of only five states to
experience double-digit increases. Three more states are nearly at 10 percent.
Areas within some states, particularly in Michigan and other rust-belt states,
have experienced double-digit increases in the past, but it's unusual to see such big
jumps for entire states, said Erik Peterson, director of public awareness for the School
Nutrition Association.
Retail Sales rose 0.5 percent, as forecast, after a 0.2 percent drop in April, the
Commerce Department said in Washington. Sales also increased 0.5 percent
excluding autos, led by gasoline as prices jumped last month. A separate report
showed claims for jobless benefits fell last week.
Fewer Americans filed claims for unemployment benefits last week, indicating
the deepest job cuts may be subsiding even as companies hold off on hiring.
Initial jobless claims fell by 24,000 to 601,000 in the week ended June 6, fewer
than forecast and the lowest level since January, from a revised 625,000 the prior
week, Labor Department figures showed today in Washington. The number of people
collecting benefits rose for a 19th straight time to a record 6.82 million in the prior
week.
U.S. foreclosure filings surpassed 300,000 for the third straight month in May
and may hit a record 1.8 million by the first half of the year, RealtyTrac Inc. said.
A total of 321,480 properties received a default or auction notice or were repossessed
last month, up 18 percent from a year earlier, the Irvine, California-based seller of
default data said today in a statement. One in 398 U.S. households received a filing
last month.
The Federal Reserve lost $5.25 billion in the first quarter on the securities it
acquired with last year's bailouts of Bear Stearns and insurer American International
Group Inc., according to a report issued Wednesday.
The loss on the holdings, which include mortgage-backed securities, reflected
a decline in their value as the recession carried over into the first three months of this
year. The cumulative loss of the Bear and AIG holdings come to $16.46 billion since
they were taken over last year.
The Fed is hoping that if it holds onto the securities long enough, they will
eventually rise in value once the economy returns to full health again, the housing
market heals and the financial and credit crises are past.
The Fed's new report, which will be issued monthly, comes as lawmakers have
demanded more information about the bailouts, and a slew of other programs intended
spur lending and stabilize the banking system.
The monthly report provides some details beyond the Fed's weekly snapshot of
loan and debt-buying programs on its balance sheet. Those details include collateral
pledged by borrowers, ratings on collateral, and the number of borrowers for some
programs.
However, the Fed did not budge on lawmakers requests that it identify
borrowers for emergency as well as other loans. Fed Chairman Ben Bernanke has
repeatedly argued that doing so would risk a run on a bank or other financial
institution, undermining the purpose of the program.
As lender of last resort, the Fed's programs are intended to bolster the financial
system, a key ingredient to lifting the country out of recession.
The monthly report showed that the Fed's commercial paper program reported
net income of $2.14 billion in the first quarter. Commercial paper is the crucial short-
term debt that companies use to pay everyday expenses. The Fed began buying

9
commercial paper last year when that market virtually came to a halt after credit
problems intensified last fall.
It also reported net earnings of $1.2 billion in the first quarter on other loan
programs, including emergency borrowing to banks and investment firms. The Fed
reported $4.57 billion in earnings under its regular transactions involving Treasury
securities.
Investors in bonds that packaged $62 billion of debt for U.S. offices, hotels and
shopping malls are bracing for more loan defaults through 2010 as Bank of America
Merrill Lynch says landlords’ monthly payments may jump 20 percent or more.
Principal is coming due on the so-called partial interest- only loans as an 18-
month-old recession saps demand for commercial real estate. About $179 billion of
such loans were written between 2005 and 2007 and bundled into bonds, according to
data from Bank of America Merrill Lynch.
With soaring vacancies and falling rents, some cash- strapped borrowers will
fail to cover the higher costs, said Andy Day, a commercial mortgage-backed
securities analyst at Morgan Stanley in New York. About 87 percent of mortgages sold
as securities in 2007 allowed owners to put off paying principal for several years or
until maturity, compared with 48 percent in 2004, Morgan Stanley data show.
“The worst is yet to come,” MetLife Inc. Chief Investment Officer Steven
Kandarian said yesterday in a Bloomberg Television interview. “Typically there’s a lag
between when the economy softens and when the defaults actually occur.”
Investors have already seen prices on top-rated senior debt drop below 70
cents on the dollar from 95 cents a year ago, according to Aaron Bryson, a commercial
mortgage-backed securities analyst at Barclays Capital in New York.
Congressman Ron Paul’s Federal Reserve Transparency Act, HR 1207, has
reached and surpassed the level of 218 cosponsors in the House of Representatives,
which means it is now cosponsored by a majority of the members.
The 218th cosponsor was Dennis Kucinich (OH-10), and the bill has since
received its 222nd cosponsor.
“The tremendous grass-roots and bipartisan support in Congress for HR 1207
is an indicator of how mainstream America is fed up with Fed secrecy,” said
Congressman Paul. “I look forward to this issue receiving greater public
exposure.”
Hearings on Federal Reserve transparency are expected within the next month, as
part of the Financial Services Committee’s series of hearings on regulatory reform.
A US Supreme Court justice refused to order bail for Conrad Black, former
Hollinger Inc. chairman, during the high court's review of his conviction for mail fraud
and obstruction of justice.
Black, 64, can refile his bail request with a federal trial judge in Chicago,
Justice John Paul Stevens said in a one-sentence order released yesterday in
Washington. The order is at least a temporary victory for the Obama administration,
which argued against bail.
Black, convicted in 2007 for his role in the theft of $6.1 million from Hollinger,
has been serving his 6 1/2-year prison sentence at a US prison in Coleman, Fla., since
March 3, 2008. A codefendant in the case, John Boultbee, was released on bail earlier
this month.
The Supreme Court in May agreed to hear arguments from Black, Boultbee,
and Mark S. Kipnis, former Hollinger corporate counsel. Their appeal contends that
they couldn't be convicted under the so-called honest services provision of the mail
fraud law because the firm wasn't at risk of losing money.
A federal appeals court upheld the conviction.

10
 We were the first to break this sorry in 2001 but the SEC wasn’t interested. It is
seldom that an Illuminists is jailed. But arrogance brought him this sentence.
Prices of goods imported into the U.S. rose in May for the third straight month,
reflecting the increasing cost of oil that threatens to undermine the economy just as it
struggles to pull out of the recession.
The 1.3 percent gain in the import-price index, the largest since July last year,
was in line with forecasts and followed a revised 1.1 percent increase the prior month,
the Labor Department said today in Washington. Prices excluding fuels climbed 0.2
percent, while being down by 5.8 percent on an annual basis -- the biggest drop since
records began in 1985.
Rising commodity costs may worsen the erosion of corporate profits because
the deepest economic slump in half a century means businesses have little power to
pass on expenses to customers.
American households lost $1.33 trillion of their wealth in the first three months
of the year as the recession took a bite out of stock portfolios and dragged down home
prices.
The Federal Reserve reported Thursday that household net worth fell to $50.38
trillion in the January-March quarter, the lowest level since the third quarter of 2004.
The first-quarter figure marked a decline of 2.6 percent, or $1.33 trillion, from the final
quarter of 2008.
Net worth represents total assets such as homes and checking accounts,
minus liabilities like mortgages and credit card debt.
The damage to wealth in the first quarter came from the sinking stock market.
The value of Americans' stock holdings dropped 5.8 percent from the final quarter of
last year.
The stock market began to rally from 12-year lows in early March after
Citigroup Inc. reported it was profitable in the first two months of the year. Since
peaking in October 2007, it had been the worst bear market since the aftermath of the
crash of 1929.
Another hit came from falling house prices. The value of household real-estate
holdings fell 2.4 percent, according to the Fed report. Collectively, homeowners had
only 41.4 percent equity in their homes in the first quarter. That was down from 42.9
percent in the fourth quarter and was the lowest on records dating to 1945.
The Case-Shiller national home price index, a closely watched barometer, last
month estimated that house prices dropped 7.5 percent during the first quarter. Prices
have fallen 32.2 percent since peaking in the second quarter of 2006.
The latest snapshot of Americans' balance sheets was contained in the Fed's
quarterly report called the flow of funds.
Despite the drop, the speed at which net worth shrunk slowed at the start of the
year. During the recession's deepest point in the October-December period,
Americans' net worth fell a record 8.6 percent, according to revised figures. That was
the largest drop on records dating to 1951.
With wealth declining and unemployment rising, there are questions about how
consumers - the lifeblood of the economy - will behave in the coming months.
Hartford Financial Services Group Inc. said it would accept as much as $3.4
billion in government bailout funds, capping a seven-month push to extend the U.S.
financial-company rescue program to money-losing insurers.
Hartford also will sell as much as $750 million in common stock, the company,
based in the Connecticut city of the same name, said today in a statement. The funds
may be used to repurchase outstanding debt, the firm said.

11
 Outgoing Chief Executive Officer Ramani Ayer, 62, turned to the government in
November after asset declines depleted capital and a sagging stock price deterred
private investors. The insurer is welcoming an investment from Treasury’s Troubled
Asset Relief Program and the pay curbs that may come with it, even as banks led by
JPMorgan Chase & Co. and Goldman Sachs Group Inc. raise capital to exit the
government initiative.
Consumer sentiment has shown a slight improvement in June, as the
Reuters/U. Michigan preliminary Index edged up to 69.0 in June from 68.7 in May.
Dollar remains steady at intra-day highs against Euro and Pound.
U.S. import prices rose for a third-straight time last month, suggesting that
rising oil prices and a lower U.S. dollar have dramatically reduced the risk of deflation.
Still, with sharply rising unemployment making it harder for workers to
command higher wages and for businesses to make price increases stick, inflation is
unlikely to spike higher as it did one year ago.
Import prices rose 1.3% last month from April, the Labor Department said
Friday, the biggest monthly rise since July 2008. Economists in a Dow Jones
Newswires survey had expected a 1.5% increase.
Still, import prices were down 17.6% compared to May 2008, the largest one-
year drop since the index was first published in 1982. And while petroleum import
prices rose 8.3% in May from April, they were down 51.4% on the year.
Excluding petroleum, import prices were up 0.2% from April, the first increase
in 10 months.
The online social network is preparing to lay off as many as 500 of its 1,600
workers, the TechCrunch blog reported on Wednesday, as it cuts costs while trying to
stay ahead of growing competition from rival Facebook.
We now hear commentary regarding the Fed raising interest rates. Some don’t
see that until next year. We don’t see it happening at all. The Fed has to keep interest
rates at current levels and continue to increase money and credit. If they do this
interest rates will rise, bond will fall, as will the dollar as gold and silver rise. If they
raise interest rates, stocks will fall, bonds will rise as will the dollar, but inflation will not
decline because it’s already in the systems, thus, gold and silver will rise. There will
also continue to be more shocks to the market that will push gold and silver higher.
Commercial paper outstanding fell $14.8 billion in the week ended 6/10 versus
a $3.6 billion fall the prior week, asset backed CP fell $32.5 billion versus an $8.3
billion. ABCP outstanding was $524.9 billion versus $557.4 billion. Unsecured financial
CP issuance rose $15.9 billion versus a $3.3 billion fall.
Brazil is looking to buy $10 billion in IMF bonds joining China and Russia.
China is buying $50 billion worth and Brazil and Russia $10 billion each. This is $70
billion of monetization.
John Williams: Annual Retail Sales Plunge Worst of Post-World War II Era -
May "Core" Monthly Retail Sales Gained 0.15% versus 0.46% Total - Corrected
Merchandise Trade Data Added $20 Billion to 2008 Deficit
http://www.shadowstats.com/
Lower grain supplies could mean higher food prices; U.S. corn and soybean
reserves have been depleted by exports and by domestic demand for fuels such as
ethanol and biodiesel. This year's crops aren't expected to replenish the grain bins.
A Daring Trade Has Wall Street Seething, which underscores a huge problem in
the investment and trading world – manipulating underlying vehicles to profit on
derivatives.
The trade, by Amherst Holdings of Austin, Texas, was particularly galling to the
big banks because it turned what they believed was a sure-fire profit into a loss. The

12
burned banks include J.P. Morgan Chase & Co., Royal Bank of Scotland Group PLC
and Bank of America Corp. Some banks have reached out to two industry trade
groups about Amherst's actions, and the groups are reviewing the transaction,
according to people familiar with their thinking. "It's all-out warfare" between the banks
and Amherst, said a senior banker at one firm that lost money. At issue is a move by
Amherst to boost the price of bonds to avoid paying out on credit-default swaps it had
sold. Banks are questioning whether Amherst set them up by selling credit-default
swaps and then rendering them worthless.
In 2007, a group of hedge funds led by Paulson & Co. suspected Bear Stearns of
plotting to boost the value of subprime-mortgage securities. At the time, Bear (which
was later bought by J.P. Morgan) denied planning to engage in such transactions.
So far the latest dust-up has been all words, in part, bankers say, because they
are wary of attracting more regulatory scrutiny at a time when lawmakers are planning
major reforms in the largely unregulated derivatives markets, long lucrative for banks.
On April 28 representatives of banks including J.P. Morgan, Goldman Sachs
Group Inc. and UBS AG's UBS Securities held a conference call to discuss the trade
but didn't come to any conclusion, according to people familiar with the matter. [Is this
collusion?]
Since the mortgage securities were valued at just $3 million or so in the market,
well below the $27 million they were redeemed for, traders believe Amherst entered
into an uneconomic transaction to profit from its swap positions.
California nears financial "meltdown" as revs tumble California's government
risks a financial "meltdown" within 50 days in light of its weakening May revenues
unless Governor Arnold Schwarzenegger and lawmakers quickly plug a $24.3 billion
budget gap, the state's controller said on Wednesday.
61% of Americans say the government should not regulate the company's
executive pay and bonuses.
The seemingly contradictory actions by the brass at Wells Fargo & Co. regarding
the federal bailout have put the San Francisco company under a microscope. Wells
was notably absent this week from the list of the 10 major banking companies repaying
Troubled Asset Relief Program funds. It is still raising more capital and has not
announced when it plans to repay its $25 billion of aid.
Two words sum up the reason Wells is not in a hurry to repay the money:
Wachovia Corp. Wells inherited much of the Charlotte company's option adjustable-
rate mortgages and other problem assets after buying it in December. Now Wells is
preoccupied with working through those issues as it absorbs Wachovia's operations.
Universa Investments LP, which has links to “Black Swan” author and New
York University professor Nassim Nicholas Taleb, is starting a hedge fund to bet that
efforts by governments and central banks to end the global recession will lead to
hyperinflation, the Wall Street Journal reported, citing Taleb. The fund will invest in
commodities and options on oil and gold stocks.
A hedge fund firm that reaped huge rewards betting against the market last
year is about to open a fund premised on another wager: that the massive stimulus
efforts of global governments will lead to hyperinflation.
The firm Universa Investments LP is known for its ties to investor Nassim
Nicholas Taleb, author of the 2007 bestseller, “the Black Swan,” which describes the
impact of extreme events on the world and financial markets.
Funds run by Universa, which is managed and owned by Mr. Taleb’s long-time
collaborator Mark Spitznagel, last year gained more than 100% thanks to its bearish
bets. Universa now runs about $6 billion, up from the $300 million it began with in
January 2007. Earlier this year, Mr. Spitznagel closed several funds to new investors.

13
 Unlike last year’s sudden market implosion, inflation isn’t an unimaginable
event that few currently anticipate. In fact, many fear inflation right now amid
government efforts to goose the economy. Universa’s bet, however, is that inflation will
reach levels few expect.
By opening the inflation fund, Universa is trying to capitalize on a wave of
investor demand for its products, which when they’re right can protect investors from
extreme market moves.
The new strategy, designed by Mr. Spitznagel, aims to post big gains if inflation
and interest rates take off as they did in the 1970s. Universa will invest in options tied
to commodities such as corn, crude oil and copper, as well as options on stocks such
as oil drillers and gold miners.
“We think these things are going to see massive volatility,” Mr. Taleb said in an
interview.
The fund will also bet against Treasury bonds, which tend to weaken in
inflationary environments. Last week, Treasury yields shot to their highest level since
November as prices fell on inflation concerns. Oil topped $66 a barrel. Gold is creeping
nearing $1,000 an ounce.
The minimum investment in the firm’s other funds has been $25 million, though
it rarely accepted investments less than $100 million, a person familiar with the fund
says. Similar standards will likely apply to the new fund, called the black Swan
Protection Protocol-Inflation, according to the person.
Mr. Taleb doesn’t have an ownership interest in the Santa Monica, Calif., firm,
but he has significant investments in it and helps shape its strategies.
The term “black swan,” which has become a market catchphrase in the last few
years, alludes to the once-widespread belief in the West that all swans are white. The
notion was proven false when European explorers discovered black swans in
Australia. A black-swan event, according to Mr. Taleb, is something that is extreme
and highly unexpected.
Mr. Taleb said any deflation would be matched by an aggressive move by
governments to stimulate their economies, leading inevitably to an uncontrollable
surge in prices.
The Treasury and Fed elitists were very concerned with the yields at the
long end of the bond market. They dragged out Japanese Finance Minister Yasano
who said his government was confident about the outlook for Treasuries.
A WSJ article said the Fed claims that they are unlikely to announce a major
increase in Treasury purchases at the June meeting. That probably means they are
going to in Fed-Speak. This past week the Fed increased holdings by $19 billion. Over
the past five weeks and they have reported purchasing $144 billion of Treasuries,
Agency and mortgage-backed securities. They also held marketable securities, held in
custody for foreign officials and international accounts. They have increased in five
weeks from $17.9 billion to $89 billion. We assume this is foreign trade surplus that the
Fed is secretly using to buy Treasuries. Over the past five weeks the Fed has
purchased $233 billion in securities - so much for winding down monetization of debt.
At the Council on Foreign Relations, White House National Economic Council
Director Larry Summers said the US will act in markets as needed.
At the end of the first quarter, six out of every ten banks were less than
prepared to withstand their potential loan losses then they had been at the end of
2008. Bad loans were up 22%. Twenty percent of banks lost money. Four large banks
lost $5 billion.
Remember in the early 20s in just three years the Reichmark dropped 95% and
in the 21 following months the Reichmark became worthless.

14
 This past week the Dow rose 0.4%; S&P rose 0.7%; the Russell 200 fell 0.7%
and Nasdaq fell 0.2%. Consumers rose 0.5%; transports rose 0.3%; banks rose 4.2%;
broker/dealers added 0.2%; high tech was up 2.1%; semis rose 1.5%; Internets rose
0.1% and biotechs increased 0.7%. Gold billion fell $16.00 and the HUI fell 5%.
Two-year T-bills gained 1 bps to 1.18%; the 10’s fell 4 bps to 3.79% and the
10-year German bund fell 9 bps to 3.63%.
Freddie Mac 30-year fixed rate mortgages surged 30 bps to 5.59%, which sent
the Fed to the bond market where they knocked down the 10-year note from 4.00% to
3.79% in two days. The 15’s rose 27 bps to 5.06% and the one-year ARMs rose 23
bps to 5.04%. Jumbos were up 11 bps to 6.675.
Fed credit fell $40.5 billion. Fed foreign holdings of Treasuries and Agency debt
surged $17.9 billion to a new record $2.750 trillion. Custody holdings for foreign central
banks are up 21.9% ytd and 19.5% yoy.
Bank credit jumped $29.6 billion. Securities credit rose $33.6 billion; loans and
leases fell $4 billion; C&I loans fell $17.3 billion; real estate loans expanded $14.5
billion; consumer loans fell $6.5 billion and securities loans rose $7.2 billion. Other
loans fell $2 billion.
M2 narrow money supply fell $7.5 billion.
Total money market fund assets fell $16.3 billion to $3.747 trillion, up 8.9% yoy.
The dollar index, the USDX, fell 0.6%.

*****
The House bill will pass we must now deluge every member of the Senate on this bill.
It is imperative that the Fed is abolished.
Senate Bill S604: The Federal Reserve Sunshine Act of 2009
http://janeqrepublican.wordpress.com/2009/05/15/senate-bill-s604-the-federal-reserve-
sunshine-act-of-2009/

*****
Audit of Federal Reserve nearing critical mass
Rep. Paul plan has 213 co-sponsors in 435-member U.S. House
http://www.wnd.com/index.php?fa=PAGE.view&pageId=100727

*****
Bring on Ron Paul's Audit of the Fed
by James Grant
http://www.lewrockwell.com/orig8/grant4.html
*****
Ron Paul Support Surges For His Audit the Fed Bill
http://www.lewrockwell.com/paul/paul538.html
*****

US House to debate Ron Paul’s ‘Audit the Fed’ bill

http://rawstory.com/08/news/2009/06/11/us-house-to-debate-ron-pauls-audit-the-
fed-bill/
*****
Israeli War Crimes Against Children During Operation Cast Lead
by Stephen Lendman
http://sjlendman.blogspot.com/
*****

15
Government Demands Inventory of All VFW Weapons
Kurt Nimmo
http://www.prisonplanet.com/government-demands-inventory-of-all-vfw-weapons.html
*****

US ATTEMPTS TO RE-DEFINE SWITCHBLADES – WOULD MAKE MOST

POCKET KNIVES ILLEGAL
http://www.kniferights.org/index.php?option=com_content&task=view&id=76&Itemid=1
50

*****
Option ARMs Threaten U.S. Housing Rebound as 2011 Resets Peak
http://bloomberg.com/apps/news?pid=20601109&sid=aQ_ZgC75Zfyw
*****
AMERICA LOSING ITS LANGUAGE AND CULTURE WITHOUT A WHIMPER
By Frosty Wooldridge June 11, 2009 NewsWithViews.com
http://www.newswithviews.com/Wooldridge/frosty473.htm
*****
US Towns Challenge Feds on Military Recruiting
Thursday 11 June 2009
http://www.truthout.org/061109EDA
*****

From a Fellow subscriber:

Bob: please watch the interview with Illinois Congressman Mark Kirk and
mention it in IF. It is a must view.
Here is the link on U-tube
http://www.usagold.com/cpmforum/
*****

AUDIT THE FEDERAL RESERVE

By Marilyn M. Barnewall June 10, 2009 NewsWithViews.com –
As of Last Wednesday there were 209 co-sponsors.
http://www.newswithviews.com/Barnewall/marilyn107.htm
*****

Federal Agent Sacked for Reporting Illegal Cougar Kills

http://www.truthout.org/061209N
*****
Mortgage Foreclosures May Undermine Economy
http://www.comstockfunds.com/default.aspx?MenuItemID=29&MenuGroup=Home&&A
spxAutoDetectCookieSupport=1
*****

Danville police shoot, kill growling miniature dachshund

http://www.timesdispatch.com/rtd/news/state_regional/article/DOGGAT11_20090
611-071201/273228/
*****

16
From a Fellow Subscriber:
I don't know what is more interesting... the CNBC article itself or all the editorial
comments of people passing these emails around. FYI...

Allrightee then, so let me get this straight....1776: revolutionary war takes place. We
establish a US Constitution. The Constitution reads that "US Government will be only
entity to pay all debts in gold and silver" (not in paper) and will issue government
currency in silver and gold coin. All is well for for about 137 years. No inflation. If your
great grandfather put $100 in silver coins away in a can in 1795 you could buy $100
worth of the same goods in 1995. No inflation. A penny saved is a penny earned, the
old adage used to say, and for good reason.There was no such thing as "inflation".
Then in 1913 a private corporation comes along and swindled a congressman to get
congress to pass a bill that gives a the private bank corporation (who decide to call
themselves "The Federal Reserve") the authority to issue and print our money. Then
they passed a bill (which incidentally was never ratified) that authorized a "Federal
income tax" so the people can now pay a tax on their labor as "interest payments" to
this private bank for the money they print up and lend to our government. Now, 96
years alter, after a ponzi scheme of using paper for money, and 96% inflation ($1 in
1913 is now worth $0.04 in purchase power as of Sept 2008), this private corporation
known as the Fed is bankrupt. Yes fold, bankrupt and officially insolvent. OK, so in
classic Madoff style...that means all US dollar paper, or "federal reserve notes" as they
are officially called are just plain worthless. That's just so sweet. And what in God's
name do you think the consequences of this all will be??? When people discover what
has been done to them, they will go absolutely MENTAL _________
OK..dudes and dudettes....so I listened to this radio interview clip below you people
sent me, and low and behold...FRONT PAGE OF CNBC this morning reads:
Fed Would Be Shut Down If It Were Audited, Expert Says
Can you spell 'D-O-L-L-A-R C-O-L-L-A-P-S-E!!!!!
<http://www.cnbc.com/id/31204170>
*****

From a Fellow Subscriber:

The article written by Matt Taibbi of Rolling Stone is excellent, and right on,
perhaps they are of use to you for your forecaster as a link. But both articles
are very detailed, and right on target.

I read these some time ago when “the big takeover” article came out, and
nearly blew a gasket. If everyone read these articles, everyone would be ready
for revolt. Even so called liberals, that don’t know why they are liberal. And
that is being kind by using the word revolt.

Best regards,
Rollingstone.com
The Big Takeover
http://www.wnd.com/index.php?fa=PAGE.view&pageId=100727
<http://www.wnd.com/index.php?fa=PAGE.view&amp;pageId=100727>

The End
by Michael Lewis
http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-

17
Wall-Streets-Boom?print=true
*****

From a Fellow Subscriber:

Hi, Bob,
Given the coming wave of inflation, I'm concerned about the affect on contracting.

Say we have outstanding contracts worth $100m for various projects. When
inflation takes off, I can see a real bloodbath coming for those caught with
providing completion of those jobs. When Katrina hit New Orleans, PVC pipe
prices escalated sharply and we were hit with subcontractors screaming force
majeure. They refused to honor their original bid price saying that the suppliers
wouldn't honor their commitments; no forward pricing or price holds. Material
was priced when it hit the job on delivery.

My concern is the contracts we have with government agencies typically don't

allow us to recover for material price escalations. When steel skyrocketed in
price a few years ago, I know of one company that had a government contract
to provide one building with an option for a second building that got caught by
the price increase. They are now out of business. Also, prevailing wage laborers
could really get stung because their hourly pay is based upon a set determination.
I could see laborers walking off jobs and demanding their pay increase to keep up
with inflation. Since states, like California, are already hurting severely, I don't see
them having the ability to complete projects if contractors walk.
Estimating future projects would be nearly impossible unless there was a price
escalation clause developed to accommodate cost increases.

If we get into a hyperinflation mode, I suppose contracting will come to a complete

halt.
I don't like what I see on the horizon.
*****

From a Fellow Subscriber:

Hi Bob—in case you have not seen it yet—the illuminist criminals in congress cannot
pass the hate crime bill as stand alone legislation—so the Senate is set to pass the
hate crimes bill as an amendment—WITH ZERO DEBATE—which Barky will rubber
stamp a nano second after it passes by the illuminist criminals—this will be the end of
patriot truth radio as you have done by the 1000’s of broadcasts—after the hate bill
passes —anyone in the USA —that is either a host or guest on such truth telling radio
broad casts—swat teams can break down your doors—24-7-and take you away for
“indefinite detention”—and the only ones reporting any of the above is a homosexual
and lesbian internet newspaper—as a fortuitous co-incidence— “PAEDOPHILES”—
will be excluded from the hate crimes bill—link is below.
http://www.washblade.com/thelatest/thelatest.cfm?blog_id=25698

*****

From a Fellow Subscriber:

YIPPEE!!! Another new Govt-appointed CZAR to rule over us.

http://www.truthout.org/061109J

18
Wow, why don't they just station thug mercenaries right outside each of our doors.
Oh, wait, that's next month.

http://www.fema.gov/media/fact_sheets/nle09.shtm
*****

From a Fellow Subscriber:

Bob, I just feel compelled to thank you for all you do for so many.
Your dedication to telling people the truth and opening their eyes is a wonderful thing
to behold. As you may recall, I learned Austrian economics precisely at the time of the
collapse last year. I moved my SEP to Peter thinking it would be safe because he
knew the problems of Keynes, etc.

I recalled hearing you on Dr. Stan's show and began to read everything on Goldseek
and anything else I could get my eyes on. I quickly realized you spoke the truth
regardless of the consequences. That is how I learned ONLY gold and silver related
assets!!! I subscribed to several newsletters to narrow the search and continue to
research companies for hours each day. As well as listen to every program wherein
you are a guest, and read all the days news events from the Internet such as new with
views, Alex etc., hour upon hour, day upon day.

My accounts are all mining share companies. The status of your truth is provable by
the following list of accounts where all are in mining = shares. It’s unbelievable, and
proves the truth of what you attempt to convey to people daily. Tell me if these are
normal returns. Account 1 funded Dec. 08 $35k closed today $117k, account 2
funded Oct. - Dec. 08 $29k close today $106k, Account 3 funded DEC. 08 $15K
closed today $41k, Account 4 funded March 09 taken from Peter Schiff after starting
with $72k, I only had $31.5k closed today $63k, account 5 funded 3 weeks ago with
$20k closed today $29.3k.

Bob, those to me are just unbelievable returns. Like the kind from above. I thank you
so much for your determination in persisting with the truth. Regardless of who is
offended by it. Had I not been guided to you from above I would never have known
100% mining as well as all the other things learned from you. Not to say money is
anything. After all it is the root of all evil. But to watch God and truth apply to this world
and the wickedness to enslave humanity through their deceit, be exposed by you, has
been the greatest blessing. Further, to use that wisdom and warn others and watch
them learn and no longer be capable of tolerating the lies on television any longer is so
awesome. Paul said we were not ignorant of his devices and God has used you to
open my and so many others we won't know until we meet the Lord. It must be so
humbling. I cannot imagine you. I am so humbled by what He has shown me and done
for me financially, particularly with the serious health issues (crohn's disease) I have
had for 24 years. It is nearly impossible physically for me to work a normal day. I am
blessed to work from my home most days. Which in turn allows me to learn from you
and spread knowledge to others. The mercy and humility to be used of Him is
overwhelming.

Please keep that foremost in your mind. You are so blessed with wisdom that comes
from God only. It is so clear for me to see. I read so many people daily. Hours and
hours and none have THAT WISDOM only he gives. You are so blessed to have that

19
and the health on top that so many take for granted. l don't have health yet it is a
blessing because it makes me appreciate and realize even more how much He
blesses me daily. The mercy and grace He pours upon me is incredible. And then I
am allowed to learn from people He works through like you and I am privileged to pass
that on to others. Stop and be thankful for all He allows us to do. The multitudes of
lives He allows you to touch should humble you tremendously. I'm not trying to
diminish your efforts and talent. But No flesh shall glory in His presence. You are so
fortunate to be used of him to reach others. It’s so awesome to watch him use people
and often they don't realize it. Never forget Bob to just continue to thank Him for
allowing Him to work through you and protect you as well. He is GOD, and so merciful.
Faith is all he looks for to be pleased. Thank him for the gifts of wisdom and
knowledge he has blessed you with. What an awesome life he has given you. And me
and everyone, if they would just realize it is all given by Him. Sorry for the ramble but
His Spirit overwhelms me at times as I see him work supernaturally through people like
you. Thanks Take care and God Bless.
*****

COMODITIES
The DOE reports crude oil inventors off 5.96 m/b, gas up 27,000 barrels and
distillates up 19,000 barrels.
EIA natural gas inventories rose 106 bcf.
Gold ended the week down 1.7% to $939 (up 6.5% y-t-d). Silver fell 3.7% to
$14.83 (up 31.3% y-t-d). July Crude inflated another $3.76 (4-wk gain of $15.20) to
$72.20 (up 62% y-t-d). July Gasoline jumped 5.1% (up 93.4% y-t-d), and June Natural
Gas increased 0.6% (down 1.4% y-t-d). September Copper rose 4.2% (up 70% y-t-d).
July Wheat fell 6.1% (down 4.3% y-t-d), and July Corn dropped 4.2% (up 4.5% y-t-d).
The CRB index rose 1.7% (up 14.3% y-t-d). The Goldman Sachs Commodities Index
(GSCI) surged 3.7% (up 35.3% y-t-d).

*****
World Oil Reserves Fell for First Time in 10 Years, BP Says
By Rachel Graham and Alexander Kwiatkowski
http://www.bloomberg.com/apps/news?pid=20601087&sid=a6.7NWiQ5wGw

*****
GOLD, SILVER, PLATINUM AND PALLADIUM
As we get closer to June Comex delivery there is great concern that gold
delivery of physical contracts cannot be met due to what can be called naked shorting.
Commercials have sold gold they cannot deliver. It looks like the US
government, which is behind these positions, will again have to call in help for delivery
like they did recently from the ECB and Deutsche Bank. All of this, of course, is illegal,
but your government has its own set of rules. What could end in a classic debacle are
the June gold options if enough are in the money and are called for delivery. It is our
guess that if this happens and the government doesn’t come up with the gold again,
that the gold pit could collapse. What we will witness over the next two weeks could be
a gold explosion, especially if gold were to breakout above $1,000. Massive demands
for delivery could take place. The forces of darkness again attacked gold last week as
well as the shares and both have rebounded. The elitists are unable to keep the gold
price down for any period of time. If the Comex collapse doesn’t come this month it
most certainly will come in September. This is why we use a long-term buy and hold
strategy and buying each time there is a dip in prices. Government is terrified and has

20
put up every roadblock imaginable to inhibit and retard delivery. In the course of all this
the elitists who have a revolving door between Wall Street, Washington and the Fed
refuse to fix the system and they continue to add massive debt to the system, which
only makes the situation worse. The system has to be restructured – purged – via
bankruptcy and an exchange of equity for debt. We know the elitists won’t do that. If
they do their power will be broken. This is why those who understand the problem are
taking delivery of gold and in the case of most small investors taking delivery of coins
and bullion and buying gold and silver shares.
Both Germany, from the US, and Dubai from London, cannot get delivery of
their gold. This is why Ms. Merkel, German Chancellor, spoke out on debt last week; to
force delivery of their gold, which the US cannot deliver. The same is true in London
just as it is on Comex. One day you will turn on the news in the morning and you will
learn that gold has jumped $500 to $1,000 overnight. Get ready for it because those
kinds of events are in our future.
On Wednesday, late buying again came in and the Dow, which was off 100,
ended up off 24 at 8739. The S&P fell 30 and Nasdaq fell 70 Dow points. The 2-year
was 1.35% and the 10’s 3.95%.
Just before the opening of Comex gold was up over $9.00, but our government
wasn’t happy with that, so they kept the price near even all day. Spot gold rose $0.20
to $952.90. June was off about the same. Silver rose $0.03 to $15.15. July was up
$0.03 as well.
As we pointed out in the last issue there is a major short position in gold. What
these commercials are doing in conjunction with our government is using bogus
government reports, such as the employment report or the CPI report, to push interest
rates down, the dollar up and push gold down. If they can drive gold down through
technical points all the better. These crooks are well aware that fundamentally and
technically gold and silver are rearing to break out. It won’t be long before the right
hand should neckline of the reverse head and shoulders will be broken, on gold, silver
and the HUI. Gold should quickly move to $1,350 to $1,500 and silver to $30.00. A
temporary way to foil the upward moves would be to announce another monetization,
which is a good possibility. It would gain only a few days respite.
The Bombay Bullion Dealers Association reported India imported 17.8 tons of
gold in May. That is 51.8 tons in 2009 versus 115 tons in 2008, almost all the buying
was done in the past two months.
Last week the ECB reports two central banks sold $18 million euros worth of
gold or 0.81% tons. The previous week’s sales were 0.63 tons.
We believe the missing gold at the Canadian Mint was used to help the US
suppress gold prices. It will take two years to get the truth but we’ll get it and someone
will swing for treason.
We have to laugh – Kitco has halted all Royal Canadian Mint Prestige
Accounts. Oh, you fools who refused to take delivery.
Owners of pooled accounts may well lose their investments. Will Kitco fold –
we’ll see. Is this Enron all over again? Or are the Perth Mint, Canadian Mint and Kitco
taking orders from the Gestapo in Washington? We will see!.
Incidentally, two million ounces of silver went missing from Comex for four
days. They finally added it back in. What morons!
There are now 4,100 contracts or 410,000 ounces for delivery in the June
contract month. That is 16% of dealer inventory. There are still 2,332 open for possible
delivery.
There is a large 581 delivery notices issued in silver for June for a total of 2.9
million ounces.

21
 The XAU fell 1.03 to 150.10 and the HUI lost 2.83 to 362.28.
The yen fell .0083 to $.9820; the euro fell .0108 to $1.3969; the pound fell
.0028 to $1.6405; the Swiss franc fell .0031 to $1.0816; the Canadian dollar lost .0078
to $.9013 and the USDX rose .46 to 80.24.
Oil rose $1.24 to $71.25; gas fell $0.05 to $2.01 and natural gas fell $0.02 to
$3.71. Copper rose $0.01 to $2.38; platinum rose $16.90 to $1,274 and palladium fell
$3.90 to $252.55. The CRB rose .49 to 260.87.
Early Thursday saw the Dow up 27 to 8726; S&P up 29; Nasdaq up 32 and the
FTSE up 31 Dow points. The Nikkei was off 10, the CAC was up 26 and the DAX was
up 5. The yen rose .0036; the euro rose .0028 and the pound was up .0088. The 2-
year T-bill was 1.36%; the 10’s 3.93%, the 1-month Libor was 0.32% and the 3-month
was 0.64%. Oil rose $0.55 to $71.88; gas rose $0.01 to $2.03 and natural gas rose
$0.03. Gold was unchanged at $954.70, silver fell $0.05 to $15.14 and copper rose
$0.04 to $2.41.
Gold production in South Africa declined by 13% on the year in April as part of
a wider slump in mining output, official data released Thursday showed.
Total mining production for the month was 10.6% lower than a year ago, with
output of minerals other than gold down 10.3%, Statistics South Africa said.
Mining production between February and April was 8.6% lower than the same
three months a year ago, with diamond output the main contributor to the fall, the
statistics agency's data showed.
Mineral sales for March, the most recent figure available, were down 16.2% on
a year earlier at 21.7 billion rand ($2.7 billion) despite a 18.4% jump in gold sales for
the month to ZAR4.84 billion, Statistics SA said.
On Thursday spot gold rose $8.20 to $960.70, as the June contract traded
$7.70 lower. Spot silver rose $0.33 to $15.48, but July was up only $0.17. Gold open
interest rose 1,193 contracts to 388,374, as silver OI rose 710 contracts to 107,157.
The HUI rose .82 to 361.46 and the XAU rose .42 to 149.68.
The Dow rose 32 to 8771; S&P gained 52 and Nasdaq rose 57 Dow points.
The 2-year was 1.32% and the 10’s were 3.86% - that could be just a snapback from
the Fed driving rates up for the auction, more monetization, or there is some nasty
news coming.
The yen rose .0070 to $.9753; the euro rose .0161 to $1.4129; the pound rose
.0282 to $1.6587; the Swiss franc rose .0110 to $1.0689; the Canadian dollar rose
.0098 to $.9111 and the USDX, dollar index, fell 81 to 79.51.
Oil rose $1.07 to $72.40; gas rose $0.04 to $2.06 and natural gas rose $0.02 to
$3.92. Copper was really strong again, up $0.07 to $2.44; platinum fell $4.10 to $1,269
and palladium fell $2.75 to $254.95. The CRB rose 5.30 to 266.17.
This week has seen an epic battle between the commercial shorts, AKA the US
Treasury and the longs. The longs holding $950 and the government-shorts defending
$960.00. As we mentioned earlier in the week the “Working Group on Financial
Markets” knows gold is about to catapult out of the long term formation of a reverse
head and shoulders. Once it does that $1,250 will come quickly and easily. That very
large short position held by the commercials will just feed on itself and explode. The
use of the aftermarket access on NY Globix is so manipulated it is beyond belief. This
is a thin institutional market inhabited mainly by those who are short, so you can’t
expect any up ticks. The CFTC is will aware of what is going on and like its counterpart
the SEC, which couldn’t find criminality in Madoff or Stanford, and looked the other
way, so does the CFTC, and that is because they are in on the caper. The large hedge
funds, pension funds and sovereign funds know what is going on but they won’t speak
out. They are terrified the government will drive them out of business. Punishment

22
similar to what we have witnessed at Bank of America recently. You either do what we
say or we destroy you. This is what we have experienced for more than 40 years.
We saw this again on Thursday overnight. These crooks had gold down more
than $12.00 on very light volume. Gold had to spend the wee hours working its way
back up again. We always see the same thing on Sunday nights, into the Comex
Monday opening. Our government is run by criminals. Thursday was a very bullish day
for gold and silver. The manipulators know that so they attacked Thursday night and
Friday morning relentlessly. Do not lose faith, June will be an epic month that we will
not lose. There is a BRIC meeting held in Russia and it will be all about the dollar. The
trend is our friend and we have it with us.
Early Friday was weak all around. The Dow fell 1 to 8698; S&P fell 5, Nasdaq
lost 4 and the FTSE was off 10. The Nikkei rose 154; the CAC fell 1 and the DAX
slipped 19. The yen was off .0074; the euro fell .0095 and the pound fell .0165, after
such a strong day yesterday. Your government in action. The 2-year was 1.30%; the
10’s 3.80% and the institutions and bond funds are furious about the Fed manipulation
in the bond market. We saw two on CNBC who were extremely agitated. They are
starting to realize what we have been writing about for 21 years. The markets are all
financially driven by our government, especially over the past 16 years. Oil was off
$1.74; gas down $0.03 and natural gas off $0.05. Copper fell $0.04; gold fell $12.00 to
$950; silver fell $0.33 to $15.16 as our government continues to rape investors.
Incidentally, if our figures serve us correctly of $49 billion of notes offered at the
Treasury auction only $19 billion were sold. It looks lie the Fed bought $30 billion.
Just to show you how desperate the banksters are over gold you cannot forget
the ECB had to deliver 850,000 ounces of gold to the Comex to cover Deutsche
Bank’s 8,500-contract short position. That short belonged to our government. That was
almost three months ago. We wonder what gold delivery demands we will see in June,
perhaps some 30% of open contracts. They obviously covered other naked shorts as
well because they sold 1,141,351 ounces. This was a major bailout of the US
government. We wonder how the eurozone members, especially Germany like that? It
is no wonder they want delivery of their gold. Of course, while all this was going on the
CFTC was in hiding. We heard nothing from European regulators as well. It should be
noted that CFTC regulations say naked shorting is illegal. The regulations require a
cover of 90%. What we have witnessed is fraud by the US government, but what do
they care. In their corporatist fascist government anything goes and they change the
rules as they go along. It also proves the commercials are not commercials, but
speculators, who are immunized from position limits. There are no longer any
transparent markets. The CFTC is just another criminal enterprise.

*****
Cenbanks could justify sharp rise in gold holdings-WGC
http://www.forbes.com/feeds/afx/2009/06/11/afx6534033.html
*****

DISCOUNT GOLD & SILVER TRADING

1800 375 4188
For the best in pricing and service for gold and silver coins, call Melody at 1-800-
375-4188. Be sure to listen to DGSTC with Bob Chapman live on Short-wave
7.415Mhz M-F 4:00PM ET, Replays Tuesday thru Friday 8pm RT 7.465Mhz
3.215 MHz M-F 11PM ET and weekly archives at
discountgoldandsilvertrading.net

23
Numbers without substance

The “U.S. National Debt Clock” (http://www.brilling.com/debt_clock) reports that as of

today (June 12th) the “Outstanding Public Debt” was about $11.4 trillion. When divided
by the U.S. population, this works out to $37,000 for every American man, woman, and
child. Given that the U.S. per capita income is about $39,000 per year, the previous
national debt number is intimidating, but not completely unreasonable or
overwhelming. If the federal gov-co only owes $11.4 trillion, we can probably work our
way out of this debt over the next generation—provided the federales don’t borrow any
“money”.
But there are a couple of problems: First, the $11.4 trillion figure is provided by gov-
co; second, that $11.4 trillion figure is almost certainly fabricated, false and hugely
understated; and third, our government’s appetite for borrowing is growing rather than
restrained. In fact, John Williams (shadowstats.com), an April, 2008 edition of USA
Today, and former U.S. Comptroller David Walker have all warned that the real
national debt is roughly $55 trillion—about 5 times the politically-correct sum reported
by gov-co.
Add in another $20 trillion in debt for state and local gov-co’s and private debt
(mortgages, cars and credit cards) and the total American debt is now at least $75
trillion (about $250,000 for every U.S. man, woman and child). If you have a family of
four, your family’s “fair share” of the debt is about $1 million. Do you have it? How
many families do you know that have it? If not, how are we going to repay that debt?
Answer? Exactly as the Chinese explained when they recently laughed at our
Secretary of the Treasury, We’re not. Not ever. As a nation we are bankrupt.
But it’s one thing to be “reasonably” bankrupt and another thing to be “irrationally”
(even, “fantastically”) bankrupt. How did we, as a nation, run up a total debt that’s not
merely enormous but virtually unimaginable? $75 trillion?! That number isn’t just hard
to understand, it’s hard to believe.
But our American debt not the only “fantastic” number in our brave, new economy.
For example, in February, the head of the Dallas Federal Reserve Bank warned that
the federal gov-co’s unfunded pension and health-care liabilities are now “over $99
trillion”.
$99 trillion?! Again, how is that even possible? The U.S. annual U.S. GDP is now
approaching $14 trillion. In order to fund a $99 trillion shortfall in pensions and health
care, Americans would have to surrender every dime of their incomes for seven years.
If we first paid our normal taxes, mortgages and car loans, we couldn’t hope to fund
the pension and health care liabilities in less than 30 years—and that assumes gov-co
didn’t borrow another dime.
But we all know that government is a credit addict. They are going to borrow, borrow,
borrow us into oblivion. According to one source, the Obama administration has
borrowed more money in its first six months than was borrowed by gov-co over the
past 30 years. We can’t pay the debt we have; how are we going to repay such
enormous additional debt?
Numbers associated with the global economy are just as fantastic as those of the U.S.
economy. For example, according to the Daily Reckoning, there are an estimated $1.6
quadrillion worth of derivatives (debt instruments) in the world. The global population
is about 6.8 billion. So if we divide the $1.6 quadrillion global derivatives by the global
population, we learn that there are $235,000 in derivative debts for every man, woman

24
and child on the planet. How the heck is that possible? And that’s in addition to the
$250,000 share of the total American debt owed by every American.

How are such fantastic economic numbers possible? Well, they’re not possible—at
least not in the real, tangible world. But people in positions of enormous power (the
world’s central bankers) have created an alternative reality that is not composed of
tangible wealth, but rather a wealth based on illusion—primarily accounting entries
stored as electrons on some hard drive.

The idea that the banking “elite” have created an “alternative reality” may seem
absurd, but let me show you the primary tool used to create that “alternative reality”:
legal tender—paper and digital dollars, euros, pesos and yuan. When the world
abandoned gold and silver as its currency, the world’s people entered into the illusory
economy of legal tender. Instead of having a monetary system that was measured in
“units of value,” we adopted a monetary system measured in “units of account”.
Result? In today’s economy, we have virtually no tangible wealth. Instead we have
mere accounts and bookkeeping entries.
Historically, if your wealth consisted of ten ounces of gold, you could not double your
wealth with the stroke of a pen or an accounting entry. If you wanted twenty ounces of
gold/wealth, you had to actually find another ten physical ounces.
Today, when wealth is measure in “units of account” (rather than units of value),
enormous wealth can be created or destroyed with the stroke of a pen or the keystroke
of a data entry clerk. And that’s why we can have $1.6 quadrillion dollars in
derivatives, and a total American debt of $75 trillion. We can have such fantastic and
seemingly impossible economic numbers because the numbers do not represent
anything of substance—they are only accounting entries. Our current measures of
wealth are no more real than an obligation to pay $1,000 for landing your “top hat” icon
on Boardwalk. Our current measures of wealth are no more real than the number of
space aliens you killed in a video game.

Modern economics is all about numbers. In order to understand economics, you have
to understand what the numbers represent. Although some economic numbers
(unemployment and interest) represent rates, the fundamental economic number
represents dollars. The Gross National Product, the National Debt, your weekly or
annual income are all measured in “dollars”.
But what’s a “dollar”? At first, that question seems a little stupid. Everyone knows
what a “dollar” is—right?
Wrong. The truth is that almost no one knows that a modern “dollar” really is. We
more or less understand dollar’s function (we can take it to the grocery store and trade
it for some groceries or beer), but not one American in 1,000 understands the dollar’s
nature.
To learn what today’s “dollar” is, we must first go back in time to see what it used to
be. For example, in A.D. 1933, the 3rd edition of Black’s Law Dictionary reported that
according to the case of Thompson v State, 90 Tex.Cr.R. 125, 234 S.W. 406, 408, a
“dollars” was “The unit employed in the United States in calculating money values. It is
coined both in gold and silver, and is of the value of one hundred cents.” [Emphasis
added.]
If you looked up the word “cents” you’d find “A coin of the United States, the least in
value of those now minted. It is the hundredth part of a dollar. Its weight is 48 gr., and
it is composed of ninety-five per centum of copper and of five per centum of tin and

25
zinc in such proportions as shall be determined by the Director of the Mint. Act of Feb.
12, 1873, § 16. See Rev. Stat. § 3515 (31 USCA § 317).” [Emphasis added.]
Black’s 4th Edition (A.D. 1957) expressly defined the “dollar” as a “unit of value”. Thus,
the lawful money required at Article 1 Section 10 Clause 1 (“No State shall make any
Thing but gold and silver Coin a Tender in Payment of Debts”) of our national
Constitution was a measure of value expressed in a certain mass of various metals.
However, today, in Black’s 8th Edition (A.D. 2004), the word “dollar” is no longer
defined.
If you want to discover what today’s dollar is, go to the Uniform Commercial Code
(UCC) at section 1-201 (general definitions) and see #24 which reads “‘Money’ means
a medium of exchange currently authorized or adopted by a domestic or foreign
government. The term includes a monetary unit of account established by an
intergovernmental organization or by agreement between two or more countries.”
Even the UCC doesn’t define “money”. They don’t say what modern money “is” they
merely say what the modern term “means”.
But the UCC does tell us that modern “money” means a “unit of account”—not a unit of
value (gold & silver coin). Modern “money” is merely a bookkeeping entry on an
account. It has no tangible reality (value expressed in a fixed weight of gold, silver or
copper). It’s merely an abstract number and an expression of a relationship on an
account between a debtor and a creditor.
More, while the definition for “Tender” in the national Constitution (gold and silver coin)
was established by We the People, the “meaning” of modern “money” is “authorized or
adopted by a domestic or foreign government . . . intergovernmental organization or by
agreement between two or more countries.” The constitutional gold and silver dollars
were established by the People and are the “people’s money”. However, our modern
paper and digital “dollars” are units of account authorized by governments,
organizations and treaties between countries.
Modern “dollars” aren’t the “people’s money”—they’re the gov-co’s money—and
there’s a difference. Without a fixed weight of gold or silver to back them, modern
dollars have no tangible reality. And that’s exactly why we can have national and
global debts that are so fantastically huge as to be irrational, impossible and seemingly
insane. Because our modern “dollars” have no tangible reality, the total debt is as
unlimited as the human imagination. Americans could be in debt for $75 billion, $75
trillion or $75 quadrillion—there’s no real difference between those sums other than a
couple of zero’s and coma’s.
Compare a $100 bill to a $1 bill. Both pieces of paper cost about four cents to make,
but one is worth 100 times as much as the other. If one piece of paper that cost four
cents can be worth one “dollar” and another piece of paper that cost four cents is worth
one hundred “dollars,” it’s obvious that the “dollar” has no tangible reality. It’s a
chameleon, an illusion, a myth.

What does this all mean? I don’t know. The whole concept of the definition or
meaning of the modern “dollar” is so bizarre, that it truly boggles the mind. If the
“dollar” has no tangible reality, then it’s as fantastic as a yardstick that has no fixed
length. How can you measure the length of a mile or how tall your 8-year old son is
with a yardstick that has no fixed length?
And how do you measure your personal income, or your net worth, or our national debt
with a dollar that is only a “unit of account” but not a “unit of value”? Without some
fixed “value,” the modern dollar and everything it measures has no fixed meaning.
We pay economists millions of dollars a year to tell us what’s happening in our
“economy,” but what can they tell us if their fundamental “unit of account” has no

26
tangible value? It’s like measuring the length of an elephant’s trunk with a rubber
band—and perhaps even an imaginary rubber band. You can have any conclusion
you want. The same elephant’s trunk can be reported to be six inches, six feet, or six
yards long. It all depends on how much you stretch of compress the rubber band.
On what basis can you run an economy if the fundamental unit of measurement has
no tangible value? What is the only “reality” in an economy based on “units of
account” (rather than “units of value”)? It’s not dollars. It’s the lies that instill public
confidence.
So long as the people “believe” in the intangible, literally non-existent “dollar,” the
economy in our “alternative reality” can continue just as well as Monopoly game
between four 8-year-olds. But what happens when the kids stop believing in the
game? What happens when Americans realize that modern “dollars” are illusions, just
bookkeeping entries that can be almost any magnitude that suits our fearless leaders?
What happens when the people understand that the fundamental reality of our modern
economy, society and political system is lies?
I doubt that you can seriously ask “What is a dollar?” without beginning to feel a sense
of uncertainty, anxiety and even terror. Figure out what a “dollar” is, and you’ll realize
the whole economy and even society is some kind of illusion that has little or no
tangible reality. Once you see that, you’ll have to ask “How long can this illusion be
sustained?” and “What happens when the illusion fails?”
The answers to these questions might not scare you, but they scare me. I believe that
sooner or later the fiction of modern “money” will be exposed and recognized by the
majority of the people. If and when that happens, I believe there’ll be an economic,
social and political catastrophe.
So what do you do if you want to distance yourself from the “alternative reality” of
illusory “units of account” and return to the “real world” of tangible wealth (“units of
value”)?
A: Acquire every speck of gold and silver you can lay hands on. Sooner or later, you’ll
be glad you did.

email us at: discountgoldandsilver@yahoo.com

Discount Gold & Silver Trading Co. provides all forms of precious metals
including gold, silver platinum and palladium whether you are buying or selling.
Our inventory includes but not limited to the American Gold, Silver, Platinum
Eagle and numismatic products including rare, investment and circulated coins.
Silver dollars, silver bars, rounds are on hand for the silver investor. Foreign
gold is also available. Call for information regarding your precious metal gold
and silver IRA. 1 800 375 4188

*****
CANADA
April MoM new housing price index down 0.6%, -3% YoY.
April international merchandise trade balance falls to a C$0.2B deficit.
Capacity Utilization falls to 69.3% in 1Q from 74.9%.

*****
Canada's production capacity idled
http://www.theglobeandmail.com/globe-investor/canadas-production-capacity-
idled/article1178407/

27
 *****
From a Fellow Subscriber:
Allow me to do the math for you as per below: Canadian oil sands CO2 emissions are
0.17% of the US coal industry and 0.08% of China's total CO2 emissions. Canada's
supposed "dirty oil" is a insignificant drop in the bucket compared to the American's very
dirty coal and to China's very dirty air. Canadians must recognize that our national pastime
has too long been to severe our noses to spite our faces. Oil and gas made up 21% of
Canada's exports in 2006 and is at the tops of the list of all Canadian exports. Think of it
this way, every Canadian across the country (from St. John's to Victoria) MUST recognize
that 21% of each dollar you have in your account or wallet has gotten there because of oil
and gas exports from B.C., Alberta, Saskatchewan, Manitoba, Nova Scotia and
Newfoundland.
China produces 4.34 billion tons of CO2, American coal interest 1.9 billion tons and the
Canadian oil sands 3.3 million tons of CO2.

*****

From a Fellow Subscriber:

Bob,
If this is indicative of most police and the military I do not think a brave militia would
have much trouble totally defeating them. The police have proven time and time again
to be gutless cowards who taser 72 year old grandmothers, invade houses dressed in
full swat gear terrorizing children and taking all their food for the entire year. They
illegally seize homes, guns, steal jewellery as they search houses and pull over people
who are black for no reason except to loot them of their $5,000 in cash. Then still
trying to prove their neutered man hood they pull over ambulances racing to hospitals
to save grandmothers who are gravely ill and strangle the driver.

But if two young men enter a school and start gunning down dozens of people the
cowards shiver in their bullet proof vests squatting behind their cars with a full load in
their pants waiting for many hours until the culprits commit suicide. When I was a kid
we looked up to the officers who were always fair, just, understanding and knew when
a reproving verbal rebuke was enough for a kid like me.

Now the cowards can not even gain control of a Chihuahua. I jest not. Here is the
story.

Chihuahua is shot by police

http://www.mirror.co.uk/news/top-stories/2009/06/11/chihuaha-is-shot-by-cops-
115875-21431383/

*****
EUROPE
The number of tourist arrivals in Greece fell almost 9% in the first five months
of the year, a leading industry group said Wednesday, pointing to a weak summer
tourist season in the months ahead.
According to the Association of Tourism Enterprises (SETE), foreign travelers
arriving at Greek airports totaled 2.37 million in the period January to May this year.
That's down 8.85% from 2.6 million a year ago.

28
 Italian industrial production in April unexpectedly rose on the month for the first
time in a year, in a sign that the recession in Europe's fourth-largest economy is likely
to moderate in the second quarter.
Industrial production rose 1.1% on the month, compared with a March fall that
was revised to a more moderate 4.5%, boosted by the production of consumer goods
and energy products, Italian statistics office Istat said Wednesday.
When adjusted seasonally and for the number of working days, industrial production
plunged 24.2% on the year, compared with an annual 23.8% fall in March.
The decline in Spanish consumer prices picked up speed in May as
households and companies cut spending in the face of spiraling unemployment and
falling exports.
The country's May consumer price index fell by 0.9% on the year and was flat
on the month, the INE said in a statement. In April, Spanish CPI fell by 0.2% on the
year and rose by 1% on the month.
In March, Spain became the euro zone's first country to report a decline in
consumer prices in the current economic downturn.
On a European Union harmonized basis, Spanish consumer prices fell 0.9% on
the year in May, slightly more than the 0.8% decline INE gave in an estimate May 28.
The annual inflation rate for the wider euro zone fell to zero in May, according to data
released May 31.
Stripping out volatile oil and fresh food prices, underlying Spanish inflation was
0.9% in May, down from 1.3% in April.
BNP Paribas analyst Eoin O'Callaghan forecasts Spain's underlying inflation
rate could turn negative by the end of this year following the collapse of a debt-fuelled
construction and consumption boom.
Up until last year, Spain had been one of the euro-zone's fastest growing
economies, but its rate of inflation was also much higher, undermining the
competitiveness of its products on international export markets.
As Spain's labor-intensive construction industry sheds tens of thousands of
workers, causing the unemployment rate to nearly double on the year to 17.36% in the
first quarter, a sharp retrenchment in demand is forcing producers to cut prices.
Italian first-quarter gross domestic product data was revised lower, confirming
that Europe's fourth-largest economy contracted at its fastest rate in at least 29 years,
as exports and investments decreased.
The data adds weight to the view that Italy is headed for its worst recession
since World War II.
Final data from the statistics office Istat showed Wednesday that GDP from
January to March fell 2.6% from the previous quarter, compared with a preliminary
estimate of a 2.4% fall. This compares with a 2.1% contraction in the fourth quarter of
last year. On an annual basis, Istat said GDP fell 6.0% compared with a preliminary
estimate of a 5.9% fall, the sharpest drop since at least 1980.
The Danish European Union harmonized consumer price index, or HICP, was
up 1.1% in May from a year earlier and up 0.4% from April, Statistics Denmark said
Wednesday. The increase was larger than that forecast by Danske Bank, which had
expected the May HICP to increase 0.9% year-on-year and 0.1% compared with the
previous month.
The consumer price index, or CPI, was up 1.3% in May compared to the same
month a year earlier and up 0.3% from April, said Statistics Denmark.
A survey of analysts by Dow Jones Newswires had forecast a 1.2% CPI increase year-
on-year. The rate of increase in the consumer price index was down slightly from the

29
previous month, when the CPI increased 1.4% on a yearly basis, Statistics Denmark
said.
Germany's consumer price index fell to 0% on year in May from 0.7% on year
in April, final data from the federal statistics agency showed Wednesday, confirming a
previously released estimate.
May's final CPI was also in line with a Dow Jones Newswires survey of
economists.
The country's annual harmonized inflation rate that the European Central Bank
looks at remained steady at 0%.
Ireland slumped deeper into what some economists fear could be a lengthy
period of deflation as the consumer price index fell by 4.7% in May from a year ago, by
far the sharpest retreat in Europe and the worst here since 1933.
Pushing the index down were lower mortgage interest repayments as the
housing market has virtually ground to a halt, compounded by fall in energy prices,
data from Ireland's Central Statistics Office showed Thursday.
Excluding mortgage interest costs, the May consumer price index was only
down 1.2% from a year earlier, the CSO said. Mortgage interest costs were down
42.4% on the year and, on the month, there was also a 12% drop in gas and 10.4%
drop in electricity prices.
Ireland was one of the first euro zone economies to see average prices fall.
Most of the other 15 countries sharing the euro currency are showing annual inflation
rates of around zero or just above.
In Ireland it began in January, when the CPI fell 0.1% on the year, but it has
gotten steadily worse in recent months, falling by 1.7% on the year in February, by
2.6% in March and 3.5% in April.
This comes against a bleak backdrop as Ireland battles for its economic
survival. This small, open economy was the first in the euro zone to slide into
recession and looks set to be the worst-performing economy in the currency area this
year, with the E.U. predicting Ireland's gross domestic product will fall by 9%.
Once the star economy of E.U., Ireland has experienced a dramatic reversal of
fortunes as Prime Minister Brian Cowen struggles with a bleed in public finances and
rising unemployment, a situation compounded by a banking system that was only
recently on the verge of collapse.
Irish consumer prices slumped again in May on lower mortgage interest
repayments and a fall in electricity and gas prices, data from Ireland's Central
Statistics Office said Thursday.
The consumer price index declined at its fastest rate since the second quarter
of 1933.
May consumer prices fell 4.7% on the year, the CSO said, and fell 0.5% on the
month.
But excluding mortgage interest costs, the May CPI was down by only 1.2% on
the year. Mortgage interest costs were down 42.4% on the year. On the month, there
was also a 12% drop in gas prices and a 10.4% drop in electricity prices.
In April, Ireland's CPI fell 3.5% on the year and 0.8% on the month.
The European Union Harmonized Index Of Consumer Prices fell 1.7% on the
year in May and rose 0.4% on the month, the CSO said.
Hungary's annual headline consumer price inflation accelerated in May, as
food prices picked up, making a near-term interest rate cut increasingly unlikely.
Headline consumer prices rose 1.5% on the month in May and were up 3.8%
from a year earlier, the Central Statistics Office, or KSH said Thursday.

30
 The annual reading was higher than analysts' forecast for a 2.9% rise in a Dow
Jones Newswires survey.
The short-term outlook for inflation is clearly upwards, driven by increases in
excise tax from July, market watchers said.
The inflation rate dropped to -0.4% in May (-0.1% in April). The Swedish
consumer price index increased by 0.1% from April to May (0.4% in May 2008). The
CPI for May 2009 is 299.45 (1980=100).
Higher prices for operation of vehicles contributed to an increase with 0.2
percentage points, mainly due to increased prices for petrol (3.4%). Other small price
increases for furnishing and household goods (0.7%), for recreation and culture (0.4%)
and for restaurants and hotels (0.6%) contributed together with 0.1 percentage point.
Lower prices for repairs (-4.5%) due to the introduction of a subsidy for home
repair and maintenance and lower interest rates (-3.2%) contributed downwards with
0.1 percentage points respectively The inflation rate according to CPIF and CPIX was
1.7% and 1.3% respectively. The monthly change was 0.2% for CPIF and 0.3 for for
CPIX. HICP changed by 0.3% from April 2009 and by 1.7% since May 2008.
US government securities seized from Japanese nationals, not clear whether
real or fake.
Bonds worth US$ 134.5 billion are seized. This is the largest financial
smuggling case in history. But are they real? Concern over ‘funny money’ or
counterfeit securities is spreading in Asia. The international press is silent.
Milan (AsiaNews) – Italy’s financial police (Guardia italiana di Finanza) has
seized US bonds worth US 134.5 billion from two Japanese nationals at Chiasso (40
km from Milan) on the border between Italy and Switzerland. They include 249 US
Federal Reserve bonds worth US$ 500 million each, plus ten Kennedy bonds and
other US government securities worth a billion dollar each.
Italian authorities have not yet determined whether they are real or fake, but if
they are real the attempt to take them into Switzerland would be the largest financial
smuggling operation in history; if they are fake, the matter would be even more mind-
boggling because the quality of the counterfeit work is such that the fake bonds are
undistinguishable from the real ones.
What caught the policemen’s attention were the billion dollar securities. Such a
large denomination is not available in regular financial and banking markets. Only
states handle such amounts of money.
The question now is who could or would counterfeit or smuggle these non-
negotiable bonds.
In order to stop money laundering Italian law sets a ceiling of 10,000 euros per
person for importing or exporting money without declaring it. The penalty for violating
the law is 40 per cent of the money seized.
If the certificates were real, for Italy it would be like hitting the jackpot. The fine
alone would amount to US$ 38 billion, five times the estimated cost of rebuilding
quake-devastated Abruzzi region. It would help Italy’s eliminate its public deficit.
If the certificates are fakes the two Japanese nationals could get a very lengthy
jail sentence for fraud.
As soon as the seizure was made the US Embassy in Rome was informed.
Italian and US secret services were called in to assist the Italian financial police.
Some important international financial newspapers had already reported on the
existence of ‘funny money’ circulating on parallel, i.e. unofficial, financial markets.
For AsiaNews a few points need considering:

31
1. When it comes to Italy the world press has tended to focus on Italian Prime
Minister Berlusconi’s personal problems rather than on stories like the bonds
smuggling affair which has been front page on Italian newspapers.
2. The fear of counterfeit bonds and securities has spread across Asia with the
result that real securities are also considered with suspicion.
3. During the Second World War several countries at war printed and put in
circulation perfectly counterfeit enemy money. It is also historically established that
some central banks, like the Bank of Italy 65 years ago, issued the same securities
twice (identical registered number and code). This way they could print more money
with legal tender than they officially declared. The main difference though is that 65
years ago the world was involved in a bloody war, which is not the case today.
European industrial production dropped by the most on record in April as the
worldwide recession ravaged demand for goods.
Production in the euro region plunged 21.6 percent from a year earlier, the
most since the data series started in 1986, the European Union’s statistics office in
Luxembourg said today. Economists expected a 19.8 percent decline, according to the
median of 14 estimates in a Bloomberg News survey. From March, output declined 1.9
percent.
European governments have approved $5.3 trillion of aid, more than the annual
gross domestic product of Germany, to support banks during the credit crunch,
according to a European Union document.
The U.K. pledged 781.2 billion euros ($1.1 trillion) to restore confidence in its
lenders, the most of any of the 27 EU members, according to a May 26 document
prepared by officials from the European Commission, the European Central Bank and
member states and obtained by Bloomberg News. Denmark, where 13 of the country’s
140 banks were bailed out by the central bank or bought by rivals last year, committed
593.9 billion euros.
The measures, designed to save banks and revive economic growth, surpass
Germany’s $3.3 trillion economy, the region’s biggest. They also helped to widen the
Euro area’s budget deficit to the most in three years in 2008. The commission, the
EU’s executive arm, is seeking to create the first EU-wide agencies with rule-making
powers to monitor risk in the economy after the crisis led to $460 billion of losses and
writedowns across the continent, according to data compiled by Bloomberg.
Poland's central bank said Friday that annual growth in M3, the broadest
measure of money supply, slowed to 14.3% in May, from April's 14.4% rise.
Still, the growth was faster than the 14.0% average forecast in a poll of nine
bank economists conducted by Dow Jones Newswires.
On the month, M3 rose by 0.9%, from a 0.6% fall in April.
Among components of money supply, household borrowing rose by 38.8% in
May compared with a 38.9% increase in April. May lending to corporates increased
17.9%, down from April's 20.4% rate.
On the month, household borrowing rose by 1.7%, while coporate credits were
lower by 0.1% on the month.
Net borrowing of the central government sector increased 2.5% on the month.
EU Industrial Production mom down 1.9% mom in Apr, -21.6% yoy.
The World Trade Organization's head, Pascal Lamy, Friday said he saw no
improvement in global trade and confirmed his forecast of a 9% drop in international
trade in 2009 in terms of volume, compared with 2008.
The French consumer price index increased slightly in May on month as fresh
food prices rose substantially and as energy prices increased, data released Friday by
the French national statistics office Insee showed.

32
 In May, French CPI rose 0.2% from April but dropped 0.3% from a year earlier,
Insee said.
The market was expecting an increase of 0.1% on the month earlier and a drop
of 0.3% on the year earlier, according to a Dow Jones Newswires survey of
economists.
Seasonally adjusted data showed that in May, French CPI dropped 0.1% over
the month and 0.2% over the year, Insee said.
In May, food prices increased 0.3% on month and 0.4% on year, with fresh
food prices up 2.3% from April, though they fell 4.1% from a year earlier, Insee said.
Energy prices rose 0.2% on month but were down 17.1% on year, with oil
products prices up 0.4% on month but down 26.1% on year, Insee said.
In May, the French core inflation rate, which strips out prices and services that
tend to be volatile or affected by tax changes, grew 0.1% on month and 1.6% on year.
Insee said France's European Union-harmonized index of consumer prices,
used for comparison across the E.U., was up 0.1% on the month and down 0.3% on
the year.
France's 2008 balance of payments deficit rose to EUR44 billion from EUR18.9
billion in 2007 and increased to 2.3% of gross domestic product from 1% of GDP, the
Bank of France said Friday.
Net foreign investments by France abroad exceeded investments in France
from abroad by EUR70.4 billion, compared to EUR47.6 billion in 2007.
However, investment in French securities from abroad exceeded investment by
French residents in securities abroad by EUR89.4 billion, compared to a net outflow of
investment in securities of EUR121 billion in 2007.
JUNE 12, 2009 EU, U.S. to File Suit Against China
BRUSSELS
The European Union and the U.S. will jointly file suit against China at the
World Trade Organization this month in a bid to stop the Asian giant from hoarding key
minerals and to set a precedent for other big producers of raw materials, people
familiar with the issue said Thursday.
For more than two years, China has been using tariffs on exports to keep
important industrial ingredients like zinc, tin and silicon for use at home. At the same
time, Beijing has aggressively bought up large quantities of minerals from resource-
rich African countries.
Western governments say the policy gives Chinese chemical firms,
steelmakers and other producers an unfair advantage. EU and U.S. trade negotiators
have prepared a list of 20 materials, mainly chemicals and metals, they believe are
subject to illegal export restrictions, though it is unclear how many of these will be part
of the WTO complaint, a European diplomat said.
----- One restriction that has provoked strong objections from the EU and the U.S. is an
export duty on yellow phosphorous, the diplomat said. China imposes a 95% duty on
the material, which is used to make numerous industrial chemicals, far above limits on
such duties that China accepted when it joined the WTO, the diplomat said.
China also places quotas on the amount of certain raw materials that can be
exported, another potential violation of WTO rules, the diplomat said.
China is not the only culprit. In an old-fashioned scramble for resources,
Russia, Ukraine, Argentina, South Africa and India also have slapped tariffs or
imposed other forms of export restrictions on exports including wood, chemicals and
iron ore.

33
 The global economic boom that prompted the scramble for raw materials is
over, but the tariffs remain, an annoyance to companies in the resource-poor
developed world.
Last year, the European Commission in Brussels drafted a dramatic warning
that a shortage of some minerals "threatened the competitiveness of European
industry." The report pointed to a costly shortage in 2000 of tantalum, an ingredient in
mobile phones, as an example of the bloc's vulnerability, and suggested "reinforcing
the dialogue" with China and Russia, a veiled threat to take the case to the WTO,
according to EU officials.
Chinese diplomats were "surprised only at the timing" of the news of a WTO
challenge, said a Chinese trade-ministry official based in Brussels. "The Europeans
have been complaining about this for nearly two years, but we thought it was coming
at the end of this year," he said. The official said China has imposed export tariffs of as
much as 100% on some products, but these were justified by "exceptional situations
linked to our internal factors."
The bureaucratic complexities of the WTO system mean it will be at least two
years before a ruling is made on the Chinese tariffs.

*****
Sarkozy’s Secret Plan for Mandatory Swine Flu Vaccination
http://www.voltairenet.org/article160457.html

The Bilderberg Plan for 2009: Remaking the Global Political Economy
http://www.voltairenet.org/article160454.html
*****

From a Fellow Subscriber:

EXCELLENT ARTICLE ON OUR CHILDRENS WORLD. YOU MAY WANT TO LAY
OUT $250 FOR ROSETTA-STONE’S so they can LEARN TO SPEAK MANDARIN
SO THEY CAN CUT OUT TO ASIA.

Muslims Have Conquered Europe Without Firing A Shot

America Will Be Next, Unless We Wake Up
http://thebulletin.us/articles/2009/05/15/herb_denenberg/doc4a0d53e38644608000685
9.txt
*****

ENGLAND
Manufacturing output rose in line with expectations in April, suggesting the
downturn in the sector is bottoming out, official data showed Wednesday.
Manufacturing output increased 0.2% on the month in April, following a revised 0.2%
gain in March, which marked the first increase since February last year, the Office for
National Statistics said.
On the year, the drop in manufacturing output moderated to 12.7% from a
revised 13.1% in March. The annual drop in manufacturing in March was revised from
12.9% reported last month.
Economists were expecting manufacturing output to rise 0.2% on the month
and fall 12.5% in annual terms, according to a Dow Jones Newswires survey last
week.
Industrial production increased 0.3% on the month, but was 12.3% weaker on

34
the year in April. That compares with revised declines of 0.3% on the month and
12.7% on the year in March. Economists were expecting industrial production to drop
0.1% on the month and by 12.2% on the year in April. March's industrial production
was revised from declines of 0.6% on the month and 12.4% on the year.
The U.K. global goods deficit was wider than expected in April with exports to
non-European Union countries falling back, the Office for National Statistics said
Wednesday.
The goods deficit came in at GBP7.0 billion in April from a downwardly revised
GBP6.5 billion in March. Economists were expecting a deficit of GBP6.4 billion,
according to a Dow Jones Newswires survey of economists last week.
March's deficit was originally reported as a GBP6.6 billion trade gap.
The goods trade deficit with non-European Union countries widened significantly to
GBP4.1 billion from an upwardly revised GBP3.4 billion in March.
Economists had forecast a non-E.U. trade deficit of GBP3.2 billion. March's
deficit was originally reported at GBP3.3 billion
The figures showed total export of goods rose 0.6% on the month but imports
grew a more rapid 2.6%.
Exports to E.U. countries were up 3.9% on the month while imports grew just
0.9%. However exports to non-E.U. countries fell 2.9% while U.K. purchases from non-
E.U. countries rose 4.4% on the month.
Our sources in the City of London tell us that quantitative easing, monetization,
is forcing bond market dealers to price in a risk premium and because the Bank of
England was secretly trading in the bond market. That is why yields on longer dated
gilts are rising. It’s called market manipulation.
Prices of goods imported into the U.S. rose in May for the third straight month,
reflecting the increasing cost of oil that threatens to undermine the economy just as it
struggles to pull out of the recession.
The 1.3 percent gain in the import-price index, the largest since July last year,
was in line with forecasts and followed a revised 1.1 percent increase the prior month,
the Labor Department said today in Washington. Prices excluding fuels climbed 0.2
percent, while being down by 5.8 percent on an annual basis -- the biggest drop since
records began in 1985.
Rising commodity costs may worsen the erosion of corporate profits because
the deepest economic slump in half a century means businesses have little power to
pass on expenses to customers.

LATIN AMERICA
Brazil's general price index, known as the IGP-M, picked up 0.29% in the May
21-31 period, compared with a fall of 0.52% in the April 21-30 period, the private
Getulio Vargas Foundation, or FGV, said Wednesday.
The latest figure was in line with analysts' expectations, which ranged from 0%
to an increase of 0.48%.
The rolling IGP-M inflation rate in the 12 months through May 31 was 1.91%.
Wholesale prices, which carry a 60% weighting in the overall index, increased 0.14%
in the May 21-31 period, compared with a drop of 0.78% in the April 21-30 period.
Consumer prices accelerated 0.07% in the period, compared with an acceleration of
0.15% in the April period. Consumer prices carry a 30% weighting in the overall index.
Construction costs picked up 1.76% in the period, compared with a fall of
0.36% in the previous period. Construction costs carry a 10% weighting in the index.
With recent figures indicating inflation is under control and signs of an economic

35
slowdown, Brazil's central bank cut the Selic base interest rate to 10.25% from 11.25%
at the end of April.

*****
Cuban Oil: Havana’s Potential Geo-Political Bombshell
http://www.coha.org/2009/06/cuban-oil-havana’s-potential-geo-political-
bombshell/
*****

Peru: Blood Flows in the Amazon

by Prof James Petras
http://www.globalresearch.ca/index.php?context=va&aid=13955
*****

CHINA
China's consumer price index in May fell 0.3% from April, the National Bureau
of Statistics said Wednesday.
Excluding food and energy products, the CPI in May fell 1.3% from a year earlier,
narrowing from the April decline by 0.1 percentage point, the bureau said in an
analysis on its Web site.
Fixed-asset investment in China's urban areas in the January-May period grew
32.9% from a year earlier, the National Bureau of Statistics said Thursday.
The expansion pace exceeded the 31.0% median growth forecast in an earlier
Dow Jones Newswires survey of 18 economists, and represents a pickup from the
30.5% rise in the first four months of this year.
Investment in central government projects rose 28.0% in the first five months of
this year compared with a year earlier, while state-owned or state-controlled
investments rose 40.6%. Beijing started implementing a CNY4 trillion stimulus program
in November.
Real estate investment, one of the main forms of private investments in China,
rose 6.8% in January-May from a year earlier, picking up from the 4.9% rise in the first
four months of this year.
China’s exports fell by a record as the global recession cut demand for goods
produced by the world’s third-largest economy.
Overseas sales dropped 26.4 percent in May from a year earlier, the customs
bureau said in a statement on its Web site today. That compares with the median
estimate for a decline of 23 percent in a Bloomberg News survey of 15 economists,
and a 22.6 percent contraction in April.
China’s property sales and investment accelerated, adding to signs that growth
in the world’s third-largest economy is recovering. Sales rose 45.3% to 1 trillion yuan
($146 billion) in the first five months of 2009 from a year earlier and real- estate
investment growth quickened to 6.8%. Sales grew 35.4% in the first four months.

JAPAN
Japan's economy shrank less than initially reported in the first quarter of 2009,
the government said Thursday, though still at a severe pace.
The country's gross domestic product fell a price-adjusted 3.8% on quarter, or
14.2% in annualized terms, revised GDP data released by the Cabinet Office showed.

36
 That was better than the initial estimate made three weeks ago of a 4.0% on-
quarter, or 15.2% annualized, fall. It was better than the forecast of economists
surveyed by Dow Jones Newswires and the Nikkei for a 3.9% on-quarter, or 14.9%
annualized, slide.
Capital spending was revised up to an 8.9% on-quarter fall from a preliminary
10.4% drop.
Japan’s economy shrank less than the government initially estimated as
business investment and inventories fell at a slower pace.
Gross domestic product shrank at a record 14.2 percent annual pace in the
three months ended March 31, less than the 15.2 percent reported last month, the
Cabinet Office said today in Tokyo. The median forecast of 23 economists surveyed by
Bloomberg News was for a 15 percent contraction.
The decline may represent the low point for an economy forecast to expand
this quarter as demand from China helps stabilize exports and leaner inventories allow
manufacturers to increase output. Still, with factories sitting idle and profits falling,
companies are slashing investment and jobs, casting doubt on whether the revival will
last.
Japan's consumer sentiment index in May rose to its highest level since March
2008, government data showed Friday, as an easing in the country's economic slump
lifted sentiment.
The Cabinet Office's consumer confidence survey index, which measures
consumers' economic outlook for the coming six months, improved for the fifth straight
month, rising by 3.3 points to 35.7. The index rose to 32.4 in April from 28.9 in March.

AUSTRALIA AND NEW ZEALAND

Australia's Department of Employment said Wednesday that its leading
indicator of employment has fallen to a negative 0.765 in June from a negative 0.620
in May. That was the 18th consecutive monthly fall, confirming a slowdown in the pace
of employment growth below a long-term trend of 2.2% per annum.
The number of housing-finance approvals in Australia rose a seasonally adjusted 0.9%
in April from March, the Australian Bureau of Statistics said Wednesday. Economists
surveyed ahead of the announcement on average had expected a rise of 0.5% in April.
Australia's unemployment rate rose to an as-expected seasonally adjusted
5.7% in May from 5.5% in April. The number of employed fell 1,700, the Australian
Bureau of Statistics said Thursday.
Economists on average had expected an unemployment rate of 5.7% in May,
with the number of employed down 30,000.
The number of people in full-time work fell 26,200 to 7.64 million in May, from
7.67 million in April, while the number of people in part-time work rose 24,500 to 3.15
million from 3.13 million.
The bureau said its seasonally adjusted workforce participation rate, or the
proportion of working-age persons at work or actively seeking work, rose to 65.5% in
May from 65.4% in April.
New Zealand food prices continued to moderate in May, backing the central
bank's forecast Thursday that inflation will drop below its 1% to 3% target band this
year, official data showed Friday.
Statistics New Zealand said food prices increased 0.3% in May on-month,
boosted by a 1% rise in grocery food prices, where bread and cake and biscuit prices
rose 2.9%. Fruit and vegetable prices fell 2.6%.
Over the year, food prices rose 6.8%, down from 7.6% in the year to April and

37
the recent peak of 10.8% in the year to September, 2008.
Over the year, grocery food was up 7.2%, meat, poultry and fish up 11.3%, and
fruit and vegetables, up 3.1%.

HEALTH
GALLBLADDER DISEASE
Approximately 20 million Americans have sick gallbladders and have gallstones.
According to medical science, the older we get the more likely we will develop gall
stones and have a gallbladder attack. Women are three times more likely than men to
develop gallstone formation and require gallbladder surgery.

SYMPTOMS
How do you know if your gallbladder is in trouble? You know you have a problem if
your have persistent indigestion and you live on antacids. If gas, bloating, burping,
belching are common after meals (but does not have to accompany a meal) these are
common indicators that a problem is brewing. If you have digestive discomfort
following a high fat meal and as time goes on the condition continues unrelated to fat
intake, you definitely have a problem brewing. The gallbladder condition usually
progresses to constant tenderness and discomfort (with or without food intake) located
under the rib cage on the right side and can also produce discomfort over the shoulder
and down the back. Gallbladder attacks can last a few minutes to hours and can also
produce nausea and vomiting.

CAUSE
What is causing the gallbladder discomfort and malfunction? The formation of
gallstones can congest the gland and get stuck in the bile duct. The gallstones are
formed from a combination of bile, bilirubin (a brownish-yellow substance produced
when the liver breaks down old red blood cells), calcium and cholesterol. The
gallstones formed by the Western diet are usually 90% cholesterol. Gallstones can
usually be detected by an ultrasound. The liver and gallbladder are organs that work
together and they can affect the health of each other. The liver filters waste and bile
salts and sends them to the gallbladder (a small, hollow, pear-shaped pouch under the
liver that holds liquid – a bladder. The bile (a.k.a. gall) is stored by the gallbladder,
which also extracts water and concentrates the bile into a green, alkaline corrosive
liquid. When we eat fat and it travels to the small intestine a trigger hormone is
released to notify the gallbladder to release its bile by way of a muscle contraction to
help dissolve the fat. The bile is similar to detergent breaking down the fat molecules.
So, if you have a sick gallbladder that can’t manufacture bile adequately and you eat a
fatty meal, your system has a problem. FYI, if you drink soda it extracts calcium from
your bones and can displace the calcium as stones in the gallbladder or kidneys and
also create bone spurs. Your diet, more than any other element, can be the deciding
factor in the health of your gallbladder.

ARE YOU AT HIGH RISK?

Some individuals are more prone to having gallstones. The contributing factors are;
obesity or rapid weight loss, artificial estrogen or hormone replacement therapies
(such as birth control and menopause drugs which produce a concentration of
cholesterol in the bile), diabetes, age (over 40), female, high blood pressure &
cholesterol (and the drugs for these conditions), family history of gallbladder disease,
low calorie diets, diet high in saturated fats, diet high in refined foods & sugar, low fiber

38
diet, non-fat or low-fat diets, Atkins diet, sluggish bowel (constipation), chronic
inflammatory diseases (such as Chron’s disease, colitis or IBS), chronic heartburn and
frequent antacid use.

COMPLICATIONS
According to the American Cancer Society approximately 8,700 individuals have
gallbladder disease turn into gallbladder cancer. Statistics show that Native Americans
in New Mexico are five times more likely to develop cancer of the gallbladder than
Caucasians. Gallbladder cancer rarely produces symptoms in the early stages and is
usually diagnosed when the gallbladder is removed for gallstone attacks. Inflammation
of the gallbladder may be caused by a bacterial infection, which may have or not have
stones called acalculous cholecystitis. If an ultrasound shows no stones the medical
treatment is to prescribe antispasmodics and laxatives.

DIET CHANGES
Changing the lifestyle can help prevent the development of gallstones. Eating more
raw vegetables, which contain more live enzymes and protein, tend to discourage the
formation of stones. A study of British women who ate a vegetarian diet cut their risk of
developing gallstones in half. Harvard did a larger study with 88,000 middle-aged
females of normal weight who increased their intake of vegetables thereby decreasing
their likelihood of getting gallstones by 30 - 40%. Another study which fed animals
vegetable and soybean protein blocked the formation of gallstones by reducing the
saturation of cholesterol in the bile. The Wistar Institute in Philadelphia tested soy
protein in hamsters, which appeared to dissolve existing gallstones.

GALLBLADDER VAMPIRE
If you want to scare the gallbladder vampire away you won’t have to wear garlic
around your neck. Women who ate more nuts, beans, lentils, peas, lima beans and
oranges have a higher resistance to gallbladder attacks. A Harvard study stated that
vary moderate consumption of alcohol offered a 40% reduction in the formation of
gallstones. This study stated ½ glass of wine or beer per day or 1/3 of a shot glass of
whiskey is sufficient amounts of alcohol and additional amounts did not increase the
subject’s protection from developing gallstones. So, according to Dr. Malcolm Maclure
of Harvard, a little alcohol helps breakdown the cholesterol to reduce the formation of
gallstones. Additionally, it appears that whole grains and vegetable fiber help protect
you from gallstones, whereas the typical low-fiber, sugar-rich diet promotes gallstones.
A British study confirmed that. A University in the Netherlands tested coffee and found
that it makes the gallbladder contract, which could promote an attack if gallstones are
forced out and get lodged in the bile duct. A Dutch study confirmed that it took as little
as a ½ cup of coffee (either regular or decaf with no cream or sugar) to make the
gallbladder contract. Researchers believe that coffee triggers the intestinal hormone to
signal the gallbladder to contract and release bile. So, if you are prone to developing
gallstones you should avoid all types of coffee. Scientists at the National Institute of
Diabetes found that individuals who fasted more than 8 eight hours overnight and
skipped breakfast had a higher risk of developing gallstones. According to Dr. James
Everhart, fasting does not stimulate the gallbladder bile to reduce cholesterol and he
recommends you not skip breakfast or fast for long periods. Lastly, women who are
overweight are at a higher risk of developing gallstones. Obese women increase their
risk by six times and a Harvard study suggested that women who are just 10 pounds
overweight double their risk of developing gallstones.

39
ADDITIONAL HELP
Obviously your diet is going to be your biggest ally in keeping your gallbladder healthy
and avoiding the development of gallstones. If you think you may have some
gallstones, you want to get rid of them or just want to cleanse the gallbladder you can
cleanse it with barberry bark. Since the liver and gallbladder work together, you can
cleanse the liver while you cleanse the gallbladder by adding some milk thistle herb. It
is recommended to do what is called a liver/gall bladder flush. Here is how it works;
use some fresh citrus juice, virgin olive oil and the milk thistle and barberry bark in the
early evening. The citrus will stimulate the liver and gallbladder to cleanse while you
sleep and hold open the duct valve while the olive oil allows any stones that may be in
the bladder to flush out into the bowel without any discomfort. The milk thistle herb
helps the liver cells to regenerate quickly and the barberry bark dissolves larger stones
while it disinfects and tones the gallbladder. For complete instructions on how to use
the liver/gallbladder flush therapy and to order barberry bark and milk thistle tinctures
call Apothecary Herbs toll free 866-229-3663, International 704-875-8010 online
http://www.thepowerherbs.com. Certified organic Milk Thistle tincture is just $17.95
and Barberry Bark tincture just $20.00. NOTE: for your health and safety it is
recommended that you cleanse the bowel and urinary tract prior to cleanse the liver
and gallbladder.

EMERGENCY ALERT!!
The WHO will soon announce a global swine flu pandemic and if you haven’t gotten
your Pandemic Kit from Apothecary Herbs now is the time. UPGRADED PANDEMIC
KIT – Call Apothecary Herbs 866-229-3663, International 704-875-8010 or
http://www.thepowerherbs.com each kit contains 8 products for 2 adults for 10-day
pandemic just $175.00.

OUR VERSION OF THE ECONOMIC STIMULUS – Apothecary Herbs is offering 15%

off your total order before shipping when you print off your shopping cart order online
or fill out the catalog order form and mail in your order with your check or money order.
Get prepared, healthy and save – what could be better than that? International orders
can send an International Money Order and save 15%. Apothecary Herbs, P.O. Box
918, Huntersville, NC 28070 USA.

EXTRA HEART ATTACK PREVENTION

In addition to the heart strengthening therapies above, while you have some extra
prevention on hand for the onset of a heart attacks. For a combo of five potent
formulas in a handy carry pack for emergencies especially when you can’t get medical
attention - look for the Heart Attack Pack (just $99.00) at Apothecary Herbs
http://www.thepowerherbs.com 866-229-3663, International 704-875-8010.

YEAR’S SUPPLY OF HERBAL MEDICINE – Stock up with over 90 products designed

to protect your immune system, cleanse the body and address what ails you. NOW
SAVE 15% on this package with the STIMULUS DISCOUNT. Call Apothecary Herbs
866-229-3663, International 704-875-8010 http://www.thepowerherbs.com

HERBS FOR PETS - Dog & Cat Immune Booster Formulas plus Dog & Cat
Congestion Formulas plus toxic-free flea and tick collars, shampoo and spray at
Apothecary Herbs. Call now toll free 866-229-3663, International 704-875-8010 or
http://www.thepowerherbs.com.

40
SURVIVAL ITEMS – STAND-UP FOOD POUCHES (NOW SAVE 15% CALL NOW)
Order your convenient and compact, dehydrated food in the stand-up pouch for food
emergencies or recreational camping. Light weight food pouches have a long shelf life,
are easy to store for your rainy day food shortages and don’t cost a lot to ship. We
have several meals to choose from in single and double serving sizes to avoid waste.
Mix and serve in the stand-up pouch and avoid the need for extra utensils and
cleanup. Order single serving or double serving meals by the case and for a hot meal,
don’t forget the reusable Flameless Oven for just $13.00. Call Apothecary Herbs 866-
229-3663, International 704-875-8010 or order online http://www.thepowerherbs.com.

Portuguese Sea Salt® - imported from the traditional salterns (a 2000-year tradition)
along the coast of Algarve, Portugal. Salt crystals are harvested by hand and sun-
dried. This is a true artisan sea salt providing richness as well as a smooth and elegant
flavor to food. 1/2 pound ground unrefined Portuguese Sea Salt® just $8.50 at
Apothecary Herbs 866-229-3663, International 704-875-8010
http://www.thepowerherbs.com.

HERB TALK LIVE – with Herbalist Wendy Wilson every Tuesday & Thursday at 7:00
pm EST on AVR www.theamericanvoice.com and Thursday at 4:00 pm on WBCQ
7.415 and Saturday 7:00 am on GCN www.gcnlive.com. Free radio show archives at
http://www.thepowerherbs.com

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

www.freezedryguy.com.

*****
Study Finds High-Fructose Corn Syrup Contains Mercury
http://www.washingtonpost.com/wp-
dyn/content/article/2009/01/26/AR2009012601831.html
*****
Supreme Court interested in vaccine lawsuit shield
http://www.app.com/apps/pbcs.dll/article?AID=/20090608/BUSINESS/90608035&temp
late=printart
*****
Wednesday, June 10, 2009
Industrialized Farming Endangers World Food Supply
http://karinfriedemann.blogspot.com/2009/06/industrialized-farming-endangers-
world.html
*****
Beyond Golden Rice: The Rockefeller Foundation’s long-term agenda behind
Genetically Modified Food
by Jurriaan Maessen
http://globalresearch.ca/index.php?context=va&aid=13944
*****

SCHEDULED ISSUES
Every Wednesday and Saturday June 2009

41