November 4, 2010 Posts

Business / Economic / Financial
[ This link to a somewhat more cumulative blog posts page will precede current
days news since most all topics remain current in terms of impact and
longer-term effect and can be searched by topical index term more easily.
The same is provided since the blog site http://alpeiablog.blogspot.com
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plckPersonaPage=PersonaComments&plckUserId=alpeia&newspaperUserId
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Another Nobel Economist Says We Have to Prosecute Fraud Or Else the

Economy Won’t Recover As economists such as William Black and James
Galbraith have repeatedly said, we cannot solve the economic crisis unless we
throw the criminals who committed fraud in jail. ‘Washington’s Blog Nov 4th,
2010 As economists such as William Black and James Galbraith have repeatedly
said, we cannot solve the economic crisis unless we throw the criminals who
committed fraud in jail. And Nobel prize winning economist George Akerlof has
demonstrated that failure to punish white collar criminals – and instead bailing
them out- creates incentives for more economic crimes and further destruction of
the economy in the future. See this, this and this. Nobel prize winning economist
Joseph Stiglitz just agreed. As Stiglitz told Yahoo’s Daily Finance on October
20th: This is a really important point to understand from the point of view of our
society. The legal system is supposed to be the codification of our norms and
beliefs, things that we need to make our system work. If the legal system is seen
as exploitative, then confidence in our whole system starts eroding. And that’s
really the problem that’s going on. *** A lot of the predatory practices in
automobile loans are going to be able to be continued. Why is it OK to engage in
bad lending in automobiles and not in the mortgage market? Is there any
principle? We all know the answer to that. No, there’s no principle. It’s money. It’s
campaign contributions, lobbying, revolving door, all of those kinds of things ***
The system is designed to actually encourage that kind of thing, even with the
fines [referring to former Countrywide CEO Angelo Mozillo, who recently paid
tens of millions of dollars in fines, a small fraction of what he actually earned,
because he earned hundreds of millions.]. I know so many people who say it’s an
outrage that we had more accountability in the ’80’s with the S&L crisis than we
are having today. Yeah, we fine them, and what is the big lesson? Behave badly,
and the government might take 5% or 10% of what you got in your ill-gotten
gains, but you’re still sitting home pretty with your several hundred million
dollars that you have left over after paying fines that look very large by ordinary
standards but look small compared to the amount that you’ve been able to cash
in. *** So the system is set so that even if you’re caught, the penalty is just a
small number relative to what you walk home with. The fine is just a cost of doing
business. It’s like a parking fine. Sometimes you make a decision to park knowing
that you might get a fine because going around the corner to the parking lot takes
you too much time. ***I think we ought to go do what we did in the S&L [crisis]
and actually put many of these guys in prison. Absolutely. These are not just
white-collar crimes or little accidents. There were victims. That’s the point. There
were victims all over the world. *** So do we have any confidence that these guys
who got us into the mess have really changed their minds? Actually we have
pretty [good] confidence that they have not. I’ve seen some speeches where they
said, “Nothing was really wrong. We didn’t get things quite right. But our
understanding of the issues is pretty sound.” If they think that, then we really are
in a sorry mess. *** There are many aspects of [deterring people from committing
crime]. Economists focus on the whole notion of incentives. People have an
incentive sometimes to behave badly, because they can make more money if they
can cheat. If our economic system is going to work then we have to make sure
that what they gain when they cheat is offset by a system of penalties. And that’s
why, for instance, in our antitrust law, we often don’t catch people when they
behave badly, but when we do we say there are treble damages. You pay three
times the amount of the damage that you do. That’s a strong deterrent.
Unfortunately, what we’ve been doing now, and more recently in these financial
crimes, is settling for fractions – fractions! – of the direct damage, and even a
smaller fraction of the total societal damage. That is to say, the financial sector
really brought down the global economy and if you include all of that collateral
damage, it’s really already in the trillions of dollars. But there’s a broader sense
of collateral damage that I think that has not really been taken on board. And that
is confidence in our legal system, in our rule of law, in our system of justice.
When you say the Pledge of Allegiance you say, with “justice for all.” People
aren’t sure that we have justice for all. Somebody is caught for a minor drug
offense, they are sent to prison for a very long time. And yet, these so-called
white-collar crimes, which are not victimless, almost none of these guys, almost
none of them, go to prison. *** Let me give you another example of where the
legal system has gotten very much out of whack, and which contributed to the
financial crisis. In 2005, we passed a bankruptcy reform. It was a reform pushed
by the banks. It was designed to allow them to make bad loans to people to who
didn’t understand what was going on, and then basically choke them. Squeeze
them dry. And we should have called it, “the new indentured servitude law.”
Because that’s what it did. Let me just tell you how bad it is. I don’t think
Americans understand how bad it is. It becomes really very difficult for
individuals to discharge their debt. The basic principle in the past in America was
people should have the right for a fresh start. People make mistakes. Especially
when they’re preyed upon. And so you should be able to start afresh again. Get a
clean slate. Pay what you can and start again. Now if you do it over and over
again that’s a different thing. But at least when there are these lenders preying on
you should be able to get a fresh start. But they [the banks] said, “No, no, you
can’t discharge your debt,” or you can’t discharge it very easily. *** This is
indentured servitude. And we criticize other countries for having indentured
servitude of this kind, bonded labor. But in America we instituted this in 2005 with
almost no discussion of the consequences. But what it did was encourage the
banks to engage in even worse lending practices. *** The banks want to pretend
that they did not make bad loans. They don’t want to come into reality. The fact
that they were very instrumental in changing the accounting standards, so that
loans that are impaired where people are not paying back what they owe, are
treated as if they are just as good as a well-performing mortgage. So the whole
strategy of the banks has been to hide the losses, muddle through and get the
government to keep interest rates really low. *** The result of this is, as long as
we keep up this strategy, it’s going to be a long time before the economy
recovers …’
Fed to pump $600B into the economy (Washington Post) [ Listen to this total,
absolute b*** s*** … from no-recession-helicopter ben shalom or b.s. for
short, bernanke, with green shoots wilting on the vine … to his most recent
b.s. line, ‘better to try and fail than to do nothing at all’ … Balderdash! … I
hearken back to a distinction made by the brilliant Peter Drucker who in
emphasizing the distinction between efficiency and effectiveness states that
being effective means doing the right things, clearly not the case here …
other than frothing that fraudulent wall street market with high-frequency
programmed trades and debased dollars he can’t seem to print enough of,
and for all but wall frauds churn and earn profits as they retain their
fraudulent gains from the last debacle and this one, his policies are nothing
short of disaster for this nation and the world. That money going into wall
street pockets has to come from somewhere … guess. Remember, america’s
defacto bankrupt and the consequences for those continuing frauds on wall
street don’t justify the irretrievable costs! ]
Dollar Shrinkage: Dave's Daily INSIDER SELLING IS AT RECORD HIGHS - ‘I

gotta do something different right? It seems every report and blog is writing
about what a great day this was for markets. It was except for low volume.
Overseas governments don't like the dollar shrinkage one little bit. A currency
war is the likely result. Oh, and before we get too optimistic (we're long too you
know) its reported insider selling is at record highs--like, what do they know?
Meanwhile with the big rally day for stocks and just about everything else priced
in dollars. (Even bond prices rose!) It's all about the Fed wanting higher asset
prices and that means stocks too. Forget about the PPT. The important thing
when it comes to the Fed's monetary policies is for every action there's a
reaction. They know that raising stock prices is good for 401Ks. It makes people
feel better so they'll shop more and maybe even buy a house. And, forget about
employment data since the unemployed have been left out on the ice with a few
worthless dollars to buy food. As stated, volume was light for this type of day and
reflects the absence of retail investors who continue to withdraw sums from
equities. What good is inflation if they're sitting in low-yielding bonds? Breadth
was positive naturally but not a 90/10 day.’
Initial Weekly Claims Rise 20,000 NEW YORK (TheStreet) – ‘The number of
Americans filing unemployment claims for the first time rose more than
expected last week according to a labor department report released early
Thursday. The advance figure for seasonally adjusted initial claims
increased by 20,000 to 457,000 in the week ended Oct. 30, from the previous
week's upwardly revised estimate of 437,000. Analysts were expecting initial
claims to rise by 11,000 to 445,000, according to consensus estimates from
Briefing.com. The number of people filing continuing claims -- those who
have been receiving unemployment insurance for at least a week -- came in
lower than expected at 4.34 million for the week ended Oct. 23, a decrease of
42,000 from the previous week's revised figure of 4.382 million. Consensus
estimates projected continuing claims to rise to 4.386 million. The SPDR
Dow Jones Industrial Average(DIA) and the SPDR S&P 500 ETF(SPY) were
rising by 0.8% and 1 % respectively in premarket trading while the
PowerShares QQQ(QQQQ) was up 1.2%. The 4-week moving average in
initial claims, which smoothes the volatility in week-to-week reports, was
456,000, an increase of 2,000 from the previous week's revised average of
454,000. The 4-week moving average in continuing claims was 4.410 million,
a decrease of 42,750 from the preceding week's average of 4.453 million.
This initial weekly claims report comes a day before the Labor Department
reports nonfarm payroll numbers for the month of October. The economy is
projected to have added 60,000 jobs in October, according to consensus
estimates from Briefing.com. In September, the economy shed 95,000 jobs,
as the state and local government laid off more workers and private sector
job growth remained modest…’
Come On! Insiders selling (into the bubble as preceded last crash), this is an
especially great opportunity to sell / take profits! Suckers’ rally to keep suckers
suckered (easy for the wall street frauds to do with just a mouse click / push of
the button – and, they know all those technical trade lines that are easy to
program in this current phase of the scam / fraud with the debased dollar). Keep
in mind, the totally mindless blather from the ‘cottage industries’ of and
fraudulent wall street itself in talking up lower P/E multiples when the same is a
direct result of the debasement of the dollar and the consequent manipulation /
translation (not real, see Davis, infra) which preceded the financial crisis / last
crash. Unemployment, trade, deficit, etc., numbers continue decidedly worse than
expected along with other negative data (and in the ‘wrong direction’, that spin
accorded ‘down but not as bad as before’ b*** s*** ) yet the market has rallied like
no tomorrow with used home foreclosure / distressed sales, though abated owing
to ‘foreclosuregate’, the other ‘heralded’ good news. Moreover, the dumbo
lemmings of Europe have jumped on the fraudulent defacto bankrupt american
crazy train propelled to the precipice also as if no tomorrow. This is about
keeping the suckers sucked in with the help of a market-frothing pre-election
debased dollar for favorable currency translation and paper (but not real when
measured in, ie., gold, etc.) profits which preceded the last crisis, inflating a
bubble as in the last crisis to facilitate the churn-and-earn, particularly with
computerized (and high frequency) trades and which commissions they’ll get
again on the way down. There is nothing to support these overbought stock
prices, fundamentally or otherwise. These are desperate criminals ‘at work’. Even
wall street shill, the senile Buffett is saying we’re still in a recession (depression)
[ Davis: ‘… all profits are inflated by 10% (from falling, debased dollar) and that
10% is the E that gets divided from the P and gives us a much better
price/multiple to hang our hats on and that gets investors to BUYBUYBUY …’
The bull market that never was / were beyond wall street b.s. when measured in
gold ] This is a great opportunity to sell / take profits (these lower dollar,
hyperinflationary currency manipulations / translations to froth paper stocks will
end quite badly as in last crash)! This is a global depression. This is a secular
bear market in a global depression. The past up moves were manipulated bull
(s***) cycles (at best) in a secular bear market. This has been a typically
manipulated bubble as has preceded the prior crashes with great regularity that
the wall street frauds and insiders commission and sell into. This is a typical wall
street ‘programmed computerized high-frequency churn and earn pass the hot
potato scam / fraud as in prior crashes ( widely reported, high-frequency trading
routinely accounts for more than 50% of daily U.S. equity trading volume and
regularly approaches 70%. )’. This national decline, economic and otherwise, will
not end until justice is served and the wall street frauds et als are criminally
prosecuted, jailed, fined, and disgorgement imposed.The Stock Market's Long
Decline Has Begun Smith ]
Auto Sales are Up, But Who's Really Buying? ‘… Not Buying It … As we search
for these vital signs of health, we continue to be sustained by the disconnect
between the markets and reality as the dow (DJI: ^DJI), Nasdaq (Nasdaq:
ÎXIC), and S&P (SNP: ^GSPC) grind higher.’
5 Promises That Money Printing Can't Fulfill - Pento ‘It seems the current
Chairman of the Federal Reserve is of the belief that diluting the dollar is the cure
for everything from a recession to male pattern baldness. And like other snake-oil
salesmen before him, Mr. Bernanke is heavy on promises and light on results.
Here are five prescriptions that money printing can't fulfill:
o Lower the corporate tax rate. The US corporate tax rate is the second
highest in the developed world, after Japan. Lowering this tax would help
American businesses compete with foreign corporations and unleash the
entrepreneurial spirit of our workforce. In addition, lowering taxes on
capital goods purchases and retained earnings would also encourage
expansion projects, new hiring, and therefore general business
development.
o Reduce crippling regulations. There isn't a much better example of the
current environment of excessive red tape than the number of "Czars"
running around the White House: 28, at last count. Ronald Reagan had
just one. These sub-cabinet level offices simply advise the President on
how to further fetter American businesses and launch umpteen
"independent probes" every time an issue comes up. But even officials not
given the Imperial Russian title are busy making life hell for small- and
medium-sized businesses because there is too much power in
Washington.
o Learn to compete with foreign workers. The federal minimum wage is
$7.25 per hour, and mandated benefits and regulations add even more to
the cost of employment. We need to repeal these laws and allow wages to
adjust freely to market conditions. Initially, incomes may drop, but if we
also lower taxes while reducing the rate of inflation, workers' real
disposable income may actually increase. Meanwhile, as our economy's
underlying strength is rebuilt, American workers will finally be able to
compete with foreign workers on a level playing field. If we ignore these
reforms, high-quality jobs will continue to flow overseas.
o Improve America's educational system. According to a recent report
put out by the National Academies of Science and Engineering, the US
ranks 21st in science and 25th in math out of 30 industrialized nations.
And, according to the World Economic Forum, the United States' K-12
education system now ranks 48th in the world. How can our workers
compete in the 21st century without the necessary technological skills to
fill highly paid positions? We need to dramatically reform our public
educational system by injecting a massive dose of free markets into the
mix. Whether this involves charter schools, private schools, vouchers, or a
combination, public schools must be forced to compete for students and
funding. If consumers were given a true choice by offering tax credits to
those parents that opt-out of the public system, it would go a long way
towards establishing an environment that purges mediocrity and rewards
excellence.
o Balance the federal budgets. Balancing a budget simply means
spending only what you take in as revenue. If we were to adopt that simply
strategy, it would ensure that: tax rates would never have to rise sharply
just to service debt, the Fed would never have to print money to 'monetize'
the debt, interest rates would be lower, and spending that benefits one
generation would never be paid for by generations to come. A stable
currency, low taxes and the ability to pay down debts are necessary
ingredients for a growing workforce and a viable middle class.
Unlike the snake oil of printed money, these genuine therapies take time and
effort, and sometimes have painful side effects. The quack remedies offered by
Dr. Bernanke promise to cure all ills with no effort on the part of the patient. If the
measures I propose are established in concert, we would lay the groundwork
upon which to rebuild the country's goods-producing sector. If allowed to
flourish, manufacturing can create the needed jobs to lower the long-term
unemployment rate and restore the county's economic vitality. The Fed's plan, by
contrast, has only one predictable consequence: inflation. Indeed, Bernanke has
already been remarkably successful in sending asset prices higher. Not only are
most commodities soaring in dollar terms, but the broader measures of the
money supply have started to surge as well. The compounded annual rates of
change in MZM and M2 over the last month are 13.3% and 9.1% respectively. The
prices-paid component of the September ISM manufactures survey jumped to 71,
and the YoY increase in the PPI is 4%. Sure, we can look to the Dow or the
stabilization of home prices and say the Fed's magic is working, but just because
the headache has gone away doesn't mean you've cured the stroke. We can look
to the inflation indicators to see that the Fed has failed to stop the bleeding.
Remember, the Fed is now printing dollars to purchase the bulk of US Treasuries
at auction, in a process called debt monetization. It is that process of the Fed
expanding the money supply to subsidize federal debt that is causing domestic
prices to surge. It will not be very long before the consumer acutely suffers from
this dangerous policy. On this point, history is clear: inflation has caused the
destruction of every middle class and every economy that has sought it as a
solution. There are no quick fixes to our current economic predicament, but there
are fixes. It's up to the American people to decide they've had enough of Ben
'Rasputin' Bernanke and they're ready for some tough medicine. When that
happens, I've got some great specialists to recommend.’
Financial Improprieties Abound as Stocks Rally Simon Maierhofer, On Thursday
November 4, 2010, 6:53 pm EDT Throughout mankind's history, scales have been a
symbol of equality. As much as commoners rely on scales to be treated fairly, 'ueber
commoners' try to escape the scales of justice and equality and want to be measured by
different and better standards. In his Gettysburg Address, Abraham Lincoln exhorted his
listeners to ensure the survival of a government of the people, by the people, for the
people. It seems like survival of the fittest like forces have turned a government of, by
and for the people into a government of, for and by special interest groups. No More
Robin Hood This week we read that even the Robin Hood of investors, creates his own
rules. Warren Buffett - the only candidate to even remotely resemble a Robin Hood of
Wall Street - had a friendly exchange with the SEC about the treatment of actual
losses.Warren Buffet's Berkshire Hathaway was sitting on $1.86 billion in losses caused
by declining Kraft and US Bancorp stock. The losses were more than 12 months old
and according to current accounting rules had to be written down.Perhaps Warren had
seen how Wall Street is allowed to bend accounting rules to its favor (more about that in
a moment) and thought: 'what they can do I can do better.'In short, Berkshire didn't write
down the $1.86 billion in losses because ... drum roll ... as Berkshire's Chief Financial
Officer Marc Hamburg's reasoned:'We believe it is reasonably possible that the market
prices of Kraft Foods and U.S. Bancorp will recover to our cast within the next one to
two years assuming that there are no material adverse events affecting these
companies or the industries in which they operate.'In other words, Berkshire didn't want
to write down losses, because under the right circumstances there's a fair chance that
stock prices will recover.Perfect Conditions - 100% ProfitabilityOf course, under the
right conditions any loss could reverse itself. But, because we don't live in a perfect
world, we have accounting rules. The final numbers are designed to help investors
evaluate a company's current financial health.If the Doctor tells you that you have high
cholesterol, do you tell him: 'Don't worry, under the perfect conditions I'll eat only raw
vegetables,' when in reality you live on burgers and fries and should be on a double
dose of cholesterol meds?Interestingly - and very smartly - Warren Buffett's new knight -
Todd Combs - has stolen the headlight and absorbed the attention of what otherwise
could turn into a full-fledged accounting scandal.Further ImplicationsCourtesy of the
post-2007 credit contraction, Wall Street Banksters, the administration, and reputable
companies have become quite adept at the denial and cover up approach.Case in point,
Fannie and Freddie. In 2008, management for the ailing housing giant denied financial
trouble. On Sunday, September 7, 2008, the government seized control of Fannie and
Freddie. Nevertheless, stocks rallied on Monday the morning after.Despite stock's
(NYSEArca: VTI - News) party mood, the ETF Profit Strategy Newsletter considered
banks (NYSEArca: KBE - News) and financial institutions (NYSEArca: XLF - News) a
'downward spiral with no stop-loss provision' and predicted Dow (DJI: ^DJI) 7,500
previously in September 2008.As stocks quickly tumbled to Dow 7,500, the government
became desperate. Real estate related losses were piling up; investors lost confidence
in the financial system and drove Washington Mutual out of business.The problem was
too big to fix, so the administration forced the Financial Accounting Standards Board to
change rule 157. Obviously, the fix is only topical. If it wasn't, why would Fannie and
Freddie need an additional $215 billion in aid?The 'new and improved' rule 157 allowed
Banksters to value assets at what they might be worth in the future. If bank A purchased
a portfolio of real estate (NYSEArca: IYR - News) for $10 million in 2006 and lost $6
million because the assets turned toxic, bank A is allowed to value the portfolio just
below $10 million. The very real loss is not included in the current earnings
numbers.Can You Trust EarningsThe real question is whether you can trust reported
earnings? If Berkshire, along with most banks and financial conglomerates, has the
legal right to fudge their earnings we may rightly wonder who else is employing this
convenient accounting trick? Some would call them stupid if they didn't.Ironically,
Citigroup's profits exceeded estimates because they reduced bad loan provisions.
JPMorgan on the other hand expects mortgage buybacks (related to the foreclosure
disaster) to cost lenders $120 billion.To emphasize, Citigroup reducing its bad loan
reserves would be like an insurance company reducing its natural disaster fund right
before hurricane season.Be that as it may, the S&P (SNP: ^GSPC), Dow Jones
(NYSEArca: DIA - News), and Nasdaq (Nasdaq: ÎXIC) continue to rally. The Nasdaq
100 (Nasdaq: QQQQ - News) has already shot past its April 2010 recovery high, while
the Dow and S&P (NYSEArca: IVV - News) are within striking distance.Expect the
Unexpected Following a horrendous August, investors were expecting a terrible
September and/or October. The opposite happened.As we approach November, we
hear that this month usually kicks off the most profitable time of the year. Fourth quarter
institutional cash inflows tend to result in the best consecutive three-month period.As
we've discussed here in the past, institutions are not the only ones that provide liquidity
right now. The Federal Reserve via its POMO purchases is another one (detailed
analysis available in the November issue of the ETF Profit Strategy Newsletter). This
extra liquidity is not to be underestimated.An Extra Black Swan As we've experienced
many times, the market tends to surprise the investing masses - most of which are
bullish right now…’
Sen. Gregg: Federal, State Governments Facing Grecian Tragedy in a Few Years
Newsmax.com | The federal government and state governments are facing
massive debts moving forward.
Goldman: Real Cost Of Fed “Easing” Will Exceed $2 Trillion Steve Watson |
[ When you see the now global lemming-like levels (yet again) of brazened,
blatent, mind-numbing paper fraud, there is no conclusion other than that
this is a dying planet, with america leading the way down! Decades, at
most. ] Endless printing of money out of thin air will continue into 2012
Geithner Visited Jon Stewart in April, Though Not for Laughs Bloomberg |
Treasury Secretary Timothy F. Geithner sat down to discuss the U.S.
economy — with comedian Jon Stewart.
European Central Bank Keeps Rates at Record The Bank of England and the
European Central Bank left their key interest rates at record lows Thursday
after recent data showed that the economic recovery was showing some
resilience.
Oil tops $86 on weak dollar, Fed stimulus Oil topped $86 a barrel on Thursday
and rose to a fresh six-month high, as higher-than-expected U.S. jobless
claims accelerated dollar losses after a U.S. Federal Reserve decision to
pump more money into the economy of the world’s top oil user.
Bernanke Confirms That The Key Goal Of The Fed, And QE2, Is To Boost Stock
Prices So much for the Fed’s two mythical mandates of promoting
“maximum employment” and maintaining “price stability.” First, we had
Bernanke’s predecessor Greenspan confirming in late July on Meet the
Press what everyone knows: namely that the primary goal of the Fed is
merely to encourage higher stock prices.
Another Nobel Economist Says We Have to Prosecute Fraud Or Else the

Economy Won’t Recover As economists such as William Black and James
Galbraith have repeatedly said, we cannot solve the economic crisis unless
we throw the criminals who committed fraud in jail.
(11-4-10) Dow 11,434 +220 Nasdaq 2,577 +37 S&P 500 1,221 +23 [CLOSE-
OIL $86.49 (-54% for year 2008) (RECORD TRADING HIGH $147.27) GAS $3.00
(reg. gas in LAND OF FRUITS AND NUTS $3.15 REG./ $3.29 MID-GRADE/ $3.39
PREM./ $3.79 DIESEL) / GOLD $1,383 (+24% for year 2009) / SILVER $26.05
(+47% for year 2009) PLATINUM $1,756 (+56% for year 2009) / DOLLAR= .70
EURO, 80 YEN, .61 POUND STERLING, ETC. (How low can you go - LOWER)/ 10
YR NOTE YIELD 2.47% …..… AP Business Highlights ...Yahoo
Market Update... T. Rowe Price Weekly Recap – Stocks / Bonds /
Currencies - Domestic / International This Is a Secular Bear Market and
The End of Buy and Hold … and Hope MARKET MANIPULATION AND HOW
THE LATEST BUBBLE-FRAUD PRE-COMING CRASH IS BEING ACCOMPLISHED
3-11-10 6 Theories On Why the Stock Market Has Rallied 3-9-10 [archived
website file] Risks Lurk for ETF Investors The bull market that never
was/were beyond wall street b.s. when measured in gold Property Values
Projected to Fall 12% in 2010 Jan 31, 2010 The Week Ahead: Risk Is Off the
Cliff; Unwind Has Begun Jan 31, 2010 01-13-10 Forecast for 2010 from Seeking
Alpha Contributor THE COMING MARKET CRASH / CORRECTION 1-28-10
Maierhofer (01-15-10) 11 Clear Signs Economy Sinking Economic Black
Hole 1-22-10: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not
Going To Recover Current Economic / Fiscal Charts Trendsresearch.com
forecast for 2009 1-7-10 Crash is coming! ‘WORST ECONOMIC COLLAPSE
EVER’ Must Read Economic / Financial Data This Depression is
just beginning The coming depression… thecomingdepression.net MUST
READ: JEREMY GRANTHAM’S QUARTERLY UPDATE 25 January 2010 (850 on
the S&P) by TPC The Next Wave of Collapse is Coming Sooner than you think
Sliding Back Into the Great Depression ABSOLUTELY, ABSURDLY,
RIDICULOUS! SELL / TAKE PROFITS WHILE YOU CAN SINCE MUCH, MUCH
WORSE TO COME!
National / World
Bill Gates Funds Approval of GM Mosquitoes to Combat Dengue Activist Post |

There has been very little public debate about whether we should be
meddling with nature by introducing billions of new organisms.
Alex Jones’ Audio Blog: The True Nature of Evil Infowars | Alex reflects on the
complex evil within the New World Order system and our human nature to
willingly participate in the destruction of our own souls.
New Republican House Promises Investigation Of Global Warming Fraud Paul
Joseph Watson | Climate change con that threatens to eviscerate middle
class faces more scrutiny
Election Over, Neocon Republicans Talk War Kurt Nimmo | It will take more than
an election to get rid of the warmongers.
Might Is Right Paul Craig Roberts | Chertoff is using his government credentials
to push full body scanners into American airports.
The US Covert War: Provoking Yemeni Terrorism Counterpunch | U.S. forces

have been conducting a covert war on the people of Yemen for almost 10
years.
Yemenis: “The truth is there is no Al Qaeda” New York Times | Most Yemenis
consider the group a myth, or a ploy by their president to squeeze the West
for aid money and punish his domestic opponents.
Goldman: Real Cost Of Fed “Easing” Will Exceed $2 Trillion – Gold Hits Record
High Goldman Sachs anticipates that the real cost of the second round of
quantitative easing will be in excess of $2 trillion and will continue well into
2012, while other prominent economists have denounced the Fed’s actions.
Jeffrey M. Smith: The GMO Threat Jeffrey M. Smith, author of the #1 GMO
bestseller Seeds of Deception, talks about his campaign to force mass
rejection of genetically modified foods in order to expunge them form the
market entirely. Smith explains how the FDA allowed GMO foods to enter the
market with no safety testing whatsoever, and that the man primarily
responsible for this is now food safety czar in the Obama administration.
Webster Tarpley: The Next Decade In this exclusive interview for Prison Planet.tv
subscribers, author Webster Tarpley goes into detail on a whole host of
historical, financial and geopolitical issues in a bid to outline the major
crises, revolutions and wars that will hit the globe over the next decade and
shape the future of our world.
This Is The Most Shocking Part Of Bernanke’s Case For Quantitative Easing
What’s amazing about the latest bout of quantitative easing is the total lack
of pretense. By that we mean Bernanke isn’t even pretending that that QE
would actually benefit the real economy.
New Republican House Promises Investigation Of Global Warming Fraud One of

the first tasks of the new Republican-controlled House of Congress will be to
launch a full investigation into the man-made global warming fraud, as the
climate change con that threatens to tax and regulate the American middle
class out of existence is exposed to what could prove terminal scrutiny.
Drudgereport: UP. UP, UP: Stocks at Highest Since LEHMAN's Fall...

Jobless claims higher...
Oil six-month high...
Gold new high...
BACKLASH BUILDS AGAINST FED PUMPING
Pelosi Seriously Considers Staying as Dem Leader … [Nothing succeeds like
failure in defacto bankrupt, pervasively corrupt america]...
WHITE HOUSE FACES INVESTIGATIONS...
No shredding documents...
New House Judiciary Chairman to Obama: Prepare...
Washington, Alaska Senate races still up in the air; 10 House races uncalled...
CT guv race mired in controversy; AP rescinds call for Dem...
Bag of Uncounted Ballots Found in totally corrupt, dead city of Bridgeport, CT...
Brazil ready to retaliate for US move in 'currency war'...
CHINA WARNS FED MOVE 'HUGE RISK'...
Germany Concerned...
Alleged Afghan voting fraud to be investigated The Afghan attorney general's
office has begun investigating nine cases in which election officials are accused
of rigging votes.
Global impact of U.S. elections Foreign Policy: A Plan B for Obama

(Washington Post) [ Plan B? Come on! … Either he’s on plan z or has no plan at
all! ] World capitals brace for a new political order in Washington, as
policymakers and analysts tried to assess the impact on foreign policy of a new
Republican-led U.S. House. Foreign Policy: The China election [ China
election? Don’t make me laugh! Almost as big a joke as american elections! (I
realize the article wasn’t about an ‘election’ (hmm … riiiiight) in China per se, but
wanted to make the albeit indirect point.)]
Election outcome may complicate Obama's foreign policy (Washington Post)

[ Wow! That’s all this country needs … a more self-destructive zionist-
leaning foreign policy which, as obvious to the rest of the world, ignores
israel’s transgressions (ie., violations of international law, u.n. resolutions,
nuclear non-proliferation treaty, etc.) while focusing on geopolitically
detrimental or otherwise, non-events. I see an already zionist-leaning foreign
policy with wobama and co. which begs the question … What foreign
policy? James Forrestal made the point: ]
Loopholes in loan recording mess (Washington Post) Countless homeowners in

Virginia are getting a tax break for which they don't really qualify because a
mortgage documentation mess makes it hard to determine who qualifies,
officials say. PHOTOS: Thousands of foreclosures put on hold
Complete coverage: Foreclosure system in chaos [ If that were the only
thing in chaos in pervasively corrupt, defacto bankrupt america, there’d be
cause for celebration. Then reality: there is no cause for celebration in
america: Alex Jones on RT: “The second American Revolution” Russia
Today | Radio host Alex Jones believes the midterm results are the
beginning of one of the largest political realignments and that this is the
start of the second American Revolution. Questions Loom Over Harry
Reid Victory as ‘Steal Nevada’ #1 on Google Aaron Dykes | [ Oh come on!
While Nevada’s not quite as bad as totally corrupt jersey, that’s hardly a
complement, the reality being what is (as bad as jersey) though no worse
than that sinkhole new york (wall street frauds, mob, etc.), virginia
(government mob, cia, etc.), northeast (ie., as suburbs of nyc, Connecticut,
etc.), california (corrupt bureaucrats, and as in the aforementioned, corrupt
courts, etc.). I mean really … does anybody really believe there are any
processes, governmental or otherwise, in defacto bankrupt america, state or
federal, that are other than pervasively corrupt or broken? ( After all, didn’t
Mikey Corleone choose Nevada … just kidding!) ] Questions remain over
whether Harry Reid and his cronies may have manipulated the vote in
Nevada, as searches for ‘Steal Nevada’ reach #1 on Google. ]
Obama's sad, not sorry Milbank: He has many talents; contrition isn't high among
them. (Washington Post) [ With a statement like this, I don’t know who’s
more out to lunch, wobama or Mr. Milbank … What talents? B*** S*** ting?
All he had to do was what he campaigned on and said he would do, which
he didn’t. B*** S*** ting is not a talent and yet that’s all he’s got. On my web
site and previously in these posts I’ve said what I believe to be true … that
wobama is content to muddle along, go with the flow, to get through this
‘thing’ called the presidency in this most precarious time for the nation …
you know, then assume the celebrity status he craves with every insecurity
of his being (there as also in ‘Being There’) by way of post-office lecture
circuit. No … sorry … b*** s*** ability is not a talent. Wobama is pathetic!
That’s sad! ]
Fed to pump $600B into the economy (Washington Post) [ Listen to this total,
absolute b*** s*** … from no-recession-helicopter ben shalom or b.s. for short,
bernanke, with green shoots wilting on the vine … to his recent ‘better to try and
fail than to do nothing at all’ … Balderdash! … I hearken back to a distinction
made by the brilliant Peter Drucker who in emphasizing the distinction between
efficiency and effectiveness states that being effective means doing the right
things, clearly not the case here … other than frothing that fraudulent wall street
market with high-frequency programmed trades and debased dollars he can’t
seem to print enough of, and for all but wall frauds churn and earn profits as they
retain their fraudulent gains from the last debacle and this one, his policies are
nothing short of disaster for this nation and the world. That money going into wall
street pockets has to come from somewhere … guess. Remember, america’s
defacto bankrupt and the consequences for those continuing frauds on wall
street don’t justify the irretrievable costs! ]
Much Ado About Nothing?: Dave's Daily ‘…How much more tension can you give
investors and still wind up with just a little "stick save" to close the session?
Color me disappointed over the lack of any entertainment value Wednesday.
Frankly, often markets will react to Fed decisions a day later which makes
Thursday perhaps more interesting. The election results came in about as
advertised. Then the Fed's QE decision offered greater stimulus than expected
but that didn't seem to move equity markets. Bond markets were volatile as the
yield curve rose sharply since the Fed is focusing their buying on shorter-term
securities. Commodity prices were mixed as precious metals were sold while the
dollar fell somewhat. This was a rather strange or unusual result. Earnings were
still rolling-in better than expected while economic data was also better than
expected (ISM, ADP, and Factory Orders). We still have Friday's unemployment
report but the Fed is already done for now so who cares? Oh, and just to keep us
interested, the GM IPO is about to hit markets to the tune of $13 billion. It will be
interesting to see how that goes. The selling group will be calling in a few favors
and wringing some hands to get this sucker off the ground…’
Forget the Short Term Questions, We're Actually in the Eye of a Very Long Storm
Seeking Alpha
'Buy the Dip' Becomes 'Buy the Rip' Roche ‘… This evening’s early polling data
shows the GOP making big gains in the House and possibly taking the Senate.
Wall Street loves the news as it means a return to the good old days of no
regulation, low taxes and essentially all the things that helped cause this
situation in the first place. Curiously, this has been just about the most widely
anticipated event in months if not years so it’s odd to see this rush into risk
assets as the news comes out….This was widely expected to be a “sell the news”
event …’
Feeling Sanguine About Stocks? Bullish Complacency Has Reached an Extreme

Jack Sparrow [ Yeah, Captain Jack knows pirated plunder when he sees it … ie.,
he points out the reason for bullishness being price-earnings multiples; yet, as
set for infra and by Davis infra, earnings have been inflated by the debased dollar
currency which lowers, quite substantially and artificially, price-earnings ratios
and is a significant factor in security analysis relating to quality of said earnings
and a substantial negative for valuations, which reality as preceded the last crash
is not discounted at all in the current / continuing bubble-fraud.] ‘Feeling
sanguine about stocks? Here is a data point that should give you pause. Via the
AAII and James Mackintosh at the FT, holdings of cash are now at their lowest
levels since March of 2000. “If that date sounds familiar,” adds Mackintosh, “it
should. The dot com bubble was just about to pop, and the S&P 500 hit levels not
reached again for seven years.” (chart). Mackintosh further highlights the “bull-
bear spread” (blue line) as plotted against the S&P 500 (red line) in the multi-year
chart above The bull-bear spread is a basic contrary indicator that is most
valuable at extremes. When bulls greatly outnumber bears — as represented by
spikes in the spread — the market tends to run out of gas. This makes sense
because, when optimism peaks, those with an urge to buy have mostly done so.
Conversely, the bull-bear spread did a great job of highlighting the March 2009
lows, which came at a pessimistic extreme. As you can see, at current levels, the
bull-bear spread is at record highs (with cash holdings at decade lows).
Complacency is rampant. So why haven’t stocks roared even more? Because a
good portion of that bullishness has been focused on corporate credit markets
alongside equities. Bulls argue that the S&P is still reasonably priced, based on a
forward earnings multiple in the 12.5 range. But this assumption depends on a far
more speculative one — that corporate earnings have not hit a cyclical peak. The
twin threats of post-stimulus slowdown and housing double dip threaten this
belief. What really matters now is whether the U.S. economy is in true recovery or
not. If the answer is “yes,” then the Fed is behind the curve and QE2 will serve as
just another inflationary paper asset boost. If the answer is “no,” then the great
body of evidence suggests QE2 will fail — and investors will be punished harshly
for taking their complacency to such extremes.’
Federal Reserve to print billions of dollars in massive shadow stimulus Agence

France-Presse | The central bank’s open market committee (FOMC) is
expected to approve massive stimulus spending not seen since the depths
of the economic crisis.
US Federal Reserve’s latest bubble threatens mayhem Telegraph | An awful lot of

people are going to lose an awful lot of money.
The Fed No Longer Cares About Hiding The Fact It Is Killing The Dollar A number
of prominent figures within the financial world are warning that a second round of
quantitative easing, expected to be announced today by the Federal Reserve, will
have disastrous consequences for the US dollar and the global economy.
Saxo Bank Joins Chorus Of Voices Calling For End Of The Federal Reserve
Following the recent surge in Fed critics, including Gross, Buffett,
Grantham, and most other self-respecting economists, Saxo Bank’s John J.
Hardy shares the most recent, and very scathing, critique of the Fed, which
essentially calls for the end of the US central bank, saying the days of the
Fed are now numbered.
America’s yuan big problem Former Reagan Administration official Paul Craig
Roberts writes, “now that a few Democrats and the remnants of the AFL-CIO
are waking up to the destructive impact of jobs off shoring on the US
economy and millions of American lives”.
The Fraud Started At the Very Top: With Government Leaders The government’s
entire strategy now – as during the S&L crisis – is to cover up how bad
things are.
AIG Dips Into Bailout Fund Again, This Time to Repay New York Fed Bailed-out
insurance giant AIG will get another $22 billion in federal taxpayer funds
through the Troubled Asset Relief Program (TARP) so it can pay back some
of the other bailout funds it received from the Federal Reserve Bank of New
York (FRBNY).
Pace of recovery remains unclear (Washington Post) [ What recovery? (Even

wall street shill, the senile Buffett is saying we’re still in a recession (depression).
Buffett: We're Still in a Recession ) ? The resurgence in the wall street fraud ]
QE2 Is Not A Recovery Plan, It’s A Stealthy Scheme To Prepare For The Next
Bank Bailout [ Next bailout? How ‘bout they’re still working on the last one …
you know, that now ‘marked to anything’ multi-trillion dollar thing … I think
people fail to recognize / realize / appreciate the magnitude of the last / continuing
fraud by the criminally insane lunatics on wall street and accomplices. See infra. ]
Federal (that says it all … NOT) report on manufacturing provides a glimmer of
encouragement. [ This is an especially great opportunity to sell / take profits!
Suckers’ rally into the close to keep suckers suckered (easy for the wall street
frauds to do with just a mouse click / push of the button). Keep in mind, the
totally mindless blather from the ‘cottage industries’ of and fraudulent wall street
itself in talking up lower P/E multiples when the same is a direct result of the
debasement of the dollar and the consequent manipulation / translation (not real,
see Davis, infra) which preceded the financial crisis / last crash. Unemployment,
trade, deficit, etc., numbers continue decidedly worse than expected along with
other negative data (and in the ‘wrong direction’, that spin accorded ‘down but
not as bad as before’ b*** s*** ) yet the market has rallied like no tomorrow with
used home foreclosure / distressed sales, though abated owing to
‘foreclosuregate’, the other ‘heralded’ good news. Moreover, the dumbo
lemmings of Europe have jumped on the fraudulent defacto bankrupt american
crazy train propelled to the precipice also as if no tomorrow. This is about
keeping the suckers sucked in with the help of a market-frothing pre-election
debased dollar for favorable currency translation and paper (but not real when
measured in, ie., gold, etc.) profits which preceded the last crisis, inflating a
bubble as in the last crisis to facilitate the churn-and-earn, particularly with
computerized (and high frequency) trades and which commissions they’ll get
again on the way down. There is nothing to support these overbought stock
wall street shill, the senile Buffett is saying we’re still in a recession (depression)
[ Davis: ‘… all profits are inflated by 10% (from falling, debased dollar) and that
10% is the E that gets divided from the P and gives us a much better
price/multiple to hang our hats on and that gets investors to BUYBUYBUY …’
The bull market that never was / were beyond wall street b.s. when measured in
gold ] This is an especially great opportunity to sell / take profits (these lower
dollar, hyperinflationary currency manipulations / translations to froth paper
stocks will end quite badly as in last crash)! This is a global depression. This is a
secular bear market in a global depression. The past up moves were manipulated
bull (s***) cycles (at best) in a secular bear market. This has been a typically
Decline Has Begun Smith ]
National / World
Alex Jones on RT: “The second American Revolution” Russia Today | Radio host
Alex Jones believes the midterm results are the beginning of one of the
largest political realignments and that this is the start of the second
American Revolution.
Questions Loom Over Harry Reid Victory as ‘Steal Nevada’ #1 on Google Aaron
Dykes | [ Oh come on! While Nevada’s not quite as bad as totally corrupt
jersey, that’s hardly a complement, the reality being what is (as bad as
jersey) though no worse than that sinkhole new york (wall street frauds,
mob, etc.), virginia (government mob, cia, etc.), northeast (ie., as suburbs of
nyc, Connecticut, etc.), california (corrupt bureaucrats, and as in the
aforementioned, corrupt courts, etc.). I mean really … does anybody really
believe there are any processes, governmental or otherwise, in defacto
bankrupt america, state or federal, that are other than pervasively corrupt or
broken? ( After all, didn’t Mikey Corleone choose Nevada … just kidding! ]
Questions remain over whether Harry Reid and his cronies may have
manipulated the vote in Nevada, as searches for ‘Steal Nevada’ reach #1 on
Google.
The Impotence of Elections Paul Craig Roberts | Oligarchs will direct the anger
away from themselves and toward the vulnerable elements of the domestic
population and “foreign enemies.”
Fed Announces QE2 Kurt Nimmo | Fed decides to unleash destructive asset
bubbles that will devastate the global economy.
Did Harry Reid Steal Nevada? Paul Joseph Watson & Alex Jones | 5 point margin of
victory highly suspicious given pre-election polls showing Angle ahead.
“Steal Nevada” Tops Google Trends As New Evidence Emerges Of Reid Vote
Fraud The search term “Steal Nevada” has topped Google Trends as new
evidence emerges that strongly indicates Senate leader Harry Reid may have
stolen last night’s election from pre-election favorite Sharron Angle.
The Fed No Longer Cares About Hiding The Fact It Is Killing The Dollar A number
of prominent figures within the financial world are warning that a second
round of quantitative easing, expected to be announced today by the Federal
Reserve, will have disastrous consequences for the US dollar and the global
economy.
Did Harry Reid Steal Nevada? A serious investigation into potential vote fraud
needs to be launched immediately in Nevada, after incumbent Harry Reid
beat Tea Party candidate Sharron Angle by a clear five points, despite pre-
election polls showing Angle four points ahead, amidst suspicious evidence
of vote flipping and other dirty tricks on behalf of the Reid campaign last
week that were dubbed “criminal” by Angle’s campaign attorney.
Schultz Urges Boehner To Protect Obama From Impeachment, Just As Pelosi Did
With Bush As the election results came in Tuesday night, MSNBC’s Ed
Schultz just wanted to know if soon-to-be House Speaker John Boehner (R-
OH) would move to impeach President Barack Obama.
DeMint: Establishment Will Try To Buy Off Tea Party Candidates The
establishment is much more likely to try to buy off your votes than to buy
into your limited-government philosophy. Consider what former GOP
senator-turned-lobbyist Trent Lott told the Washington Post earlier this year:
“As soon as they get here, we need to co-opt them.”
Rand Paul Promises To Challenge GOP Establishment On the same day that he
swept to victory in the Kentucky Senate race, Rand Paul immediately
contradicted doubters who warned that he would compromise and begin to
support neo-con political policies by promising to challenge the GOP
establishment while also working to cut the bloated US defense budget.
Drudgereport: Bye, Bye Tiny Tim Geithner … God bless us, everyone … ?
BRAND NEW PUMP: Fed to spend $1 trillion to buy gov't bonds...
Bernanke Faces More Congressional Scrutiny After GOP Election Gains...
Gregg: 'We're Greece' in a Few Years...
GOP to urge Obama officials not to shred documents...
Next up for House Dems: Ethics trials for Rangel, Waters...
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Mitt Romney: Time to slay the job-killing beast (Washington Post) [ Wow! Talk
about talking to the hand (or mitt) … you know, creative fantasizing … I
mean, a little bit late for that … Wobama’s done, defacto bankrupt,
pervasively corrupt american government employees across the board are a
venal, pervasively corrupt total waste (unless they gear up long overdue
prosecutions of ie., wall street frauds, and not just the tiny ones for show,
etc., then law enforcement / prosecution personnel excepted) . Then, of
course, there’s reality. Methinks it’s a bit late to be asking these questions.
In fact, meknows it’s too late to be asking that question in light of the
irrevocable structural shift precipitated by those geniuses in Washington,
including among other helmsmen of this now titanic of a nation, those
‘strategists’ in those hallowed halls of, ie., the cia, nsa, think tanks, sink
tanks, etc., and of course, those vaunted trade deals which include
essentially all branches of the corrupt u.s. government with complicit titans /
ceos of american industry with a time horizon defined by their latest
compensation package / stock option expirations as cheered by the wall
street frauds who sold off / transferred the technological capacity to do so;
and, of course, the coup de grace, viz., that thing called NAFTA that Ross
Perot was vilified for opposing and warning against.]
Memoir: Bush debated dropping Cheney (Washington Post) [ More unequivocal

proof that moron dumbya bush couldn’t, like wobama and recent predecessors,
make the right decision even if their presidencies and the nation’s survival
depended on it. Heck uv a job brownie, bushie, cheney, wobamie, etc…. Keep up
those nation bankrupting, attention-diverting wars you knucklehead war
criminals, you. ]
U.S. to cut its stake in GM (Washington Post) [ Ooooh! Sounds like a plan …
they’re so on top of things at treasury … like multi-trillion dollar deficits,
unprosecuted multi-trillion dollar frauds, missing / stolen trillions in Iraq and
at the fed, etc.. ] The Treasury Department is expected to sell about $7
billion of its shares.
Consultant to Rockville biotech firm accused of insider trading (Washington Post)

[ How is it that they’re prosecuting millions when the multi-trillion dollar
fraud remains not only unprosecuted, but ongoing …QE2 Is Not A Recovery
Plan, It’s A Stealthy Scheme To Prepare For The Next Bank Bailout [ Next
bailout? How ‘bout they’re still working on the last one … you know, that
now ‘marked to anything’ multi-trillion dollar thing … I think people fail to
recognize / realize / appreciate the magnitude of the last / continuing fraud
by the criminally insane lunatics on wall street and accomplices. … see
infra … ] A consultant to Human Genome Sciences has been charged for
allegedly tipping off a hedge fund about setbacks in the testing of a hepatitis
drug.
In Albany, a boom based on microchips (Washington Post) [ Come on! Don’t be
ridiculous! This would still be preposterous even if it was a story about
Silicon Valley … but that sinkhole new york? … what have they been
smoking … Absolutely ridiculous! ] The economic downturn has hit upstate
New York as hard as anywhere in the country but an unusual, high-tech
endeavor is taking shape there that could involve billions of dollars in
manufacturing investment and possibly thousands of new jobs.
Equities Up as Street Bets on Fed Efforts, Congressional Shift [ The fraud

continues …Come on! What total b*** s***! ]
Houdini Had Nothing on This (Suckers’) Rally Farrish ‘The rally lasted about
thirty minutes and then worry took center stage. The NASDAQ gave up a twenty-
five point gain which was within three points of the April high. The S&P 500 index
gave back twelve points and barely ended the day positive. Was this the final
attempt to reach the April highs before the reality of what has been the driver hits
the headlines? Since the low on August 27th, quantitative easing and the election
have been two of the driving factors in the move. In fact, many believe this to be
nothing more than a liquidity rally. Factoring in the economic data one would
have to give that argument serious consideration.The Fed announced on August
27th that it was considering another round of quantitative easing to stimulate the
economy. The increased money supply is intended to reduce rates and keep
freely flowing to stimulate growth through low interest rate loans. The argument
for or against such efforts have been debated endlessly in the press over the last
five weeks and the anticipation has prompted a 13% rally in the broad markets. It
has accomplished the feat without a single draw-down of more than 2% since the
move higher began. In the process of this accomplishment the dollar has
declined 7% paying the price for proposed Fed actions.What I find interesting to
this point, the Fed hasn’t taken any action, nor have they defined what action they
may take moving forward. In other words speculation has been the driving factor
in this broad market gain of 13% since the last FOMC meeting. Without supply
any additional liquidity, the Fed has accomplished growth in the equity markets.
Sounds like, “buy on the rumor” is in play. Some interesting stats:
• The dollar has moved from $1.26 to $138 versus the euro.
• Crude oil has moved from $71.60 to $83 per barrel.
• Gold has moved from $1236 to a high of $1380 an ounce.
• The 30 year Treasury bond yield has moved from 3.63% to 4.05%. (TLT
dropped from $108.50 to $99.67)
• NASDAQ 100 index climbed from 1768 to 2128 (20.3%)
Last Friday the Q3 GDP report was a 2% gain. If the economy is growing at 2%
and the above stats are the results, Houdini is in charge of the markets. I will be
so bold as to say the market is overbought based on the current data. If investors
are looking forward and anticipating accelerating growth, Q4 GDP growth
estimates are currently 2.3%.China continues to grow despite the efforts to slow
their economy. The manufacturing data released yesterday showed better than
expected growth despite the restriction place on lending and available credit.
Interesting that the US markets rally on proposed easing and essentially free
money, while the Chinese markets rally on stronger economic growth. Maybe
Bernanke really is Houdini!Tomorrow we should get the facts to go along with the
speculation. The conclusion of the FOMC meeting is supposed to produce details
on how much free money the Fed will produce to stimulate speculative growth in
the US stock market (sorry I mean economy). The details will prove supportive of
the growth which has taken place since the August 27th announcement or it will
be disappointing and prompt a retraction of the growth. Either way all eyes will be
fixated on the release at 2:15 PM.Today is all about the midterm elections. To
make it easier on the networks there are no economic reports to get in the way.
The only surprise awaiting the results will be how many seats are lost in the
House and Senate by Democrats. Regardless the end result will leave all of the
primary questions unanswered. But at least we can return to the normal mindless
commercials on TV versus the mindless rambling about the “other” candidate.
Should make for interesting headlines tomorrow.I do have one question that has
been haunting me this entire election season…, why is it considered ‘extreme’ to
call for a balanced budget act from Congress, but it is normal to pass a
Congressional budget for 2011 that has a deficit of 1.3 trillion dollars? … ’
The Fed at Jekyll Island: 100 Years Later, They’re Baaack!

EconomicPolicyJournal.com | Nothing good can come out of a conference
of Fed members talking to each other after just launching QE2.
Bill Gross: “Bernanke Is Charles Ponzi” The Daily Bail | Gross is honest about
Bernanke but then disavows any connection to natural intelligence with his
statement that QE2 will work.
Bank Bailout Pragmatic Capitalist | I’ve shown in rather elaborate detail in
recent weeks that quantitative easing does not help the real economy
generate a sustained recovery.
Irish Bonds Plunge: New Bund Spread Record As Euro Pushes Ever Higher;
Ultraviolence To Follow? The market is once again getting plain retarded.
One look at what is happening in Europe should be sufficient for every self-
respecting investor to throw up all over this b***s*** and quit the business
forever.
Dollar Death Bed: Aussie Beyond Parity For First Time In 28 Years The entire
world is preparing to bury the dollar in advance of tomorrow’s QE2 currency
suicide by the chairman. Exhibit A: the OZ dollar which is now trading north
of parity for the first time in 28 years, as Australia decidedly puts its in chips
in China’s basket, believing that no matter how high the OZ, China will have
no problem with importing its exports.
Fed Easing May Mean 20% Dollar Drop: Bill Gross The dollar is in danger of
losing 20 percent of its value over the next few years if the Federal Reserve
continues unconventional monetary easing, Bill Gross, the manager of the
world’s largest mutual fund, said on Monday.
Living Beyond Our Means: 3 Charts That Prove That We Are In The Biggest Debt
Bubble In The History Of The World Do you want to see something truly
frightening? Just check out the 3 charts posted further down in this article.
These charts prove that we are now in the biggest debt bubble in the history
of the world.
Catherine Austin Fitts: The Looting Of America Former Assistant Secretary of

Housing under George H.W. Bush Catherine Austin Fitts blows the whistle
on how the financial terrorists have deliberately imploded the US economy
and transferred gargantuan amounts of wealth offshore as a means of
sacrificing the American middle class. Fitts documents how trillions of
dollars went missing from government coffers in the 90’s and how she was
personally targeted for exposing the fraud.
National / World
Victories Suggest Wider Appeal of Tea Party; Republicans pick-up seats,

Democrats may hold Senate NY Times | The Tea Party victories by Rand
Paul of Kentucky and Marco Rubio of Florida underscored the extent to
which Republicans and Democrats alike may have underestimated the
power of the Tea Party.
WSJ: Rand Paul victory ‘sends Fed critic to Senate’ Aaron Dykes | Rand Paul’s
victory represents a blow to the establishment and renewed Senate support
for an audit of the Federal Reserve.
Rand Paul Wins in Kentucky Fox Nation | Paul beat Kentucky state Attorney
General Jack Conway after a bitter contest that delved into Paul’s religion
and made for some tense debates.
Catherine Austin Fitts: The Looting Of America Paul Joseph Watson | Financial
terrorism and the war on the middle class. - ‘Former Assistant Secretary of
Housing under George H.W. Bush Catherine Austin Fitts blows the whistle
on how the financial terrorists have deliberately imploded the US economy
and transferred gargantuan amounts of wealth offshore as a means of
sacrificing the American middle class. Fitts documents how trillions of
dollars went missing from government coffers in the 90’s and how she was
personally targeted for exposing the fraud. Fitts explains how every dollar of
debt issued to service every war, building project, and government program
since the American Revolution up to around 2 years ago – around $12 trillion
– has been doubled again in just the last 18 months alone with the bank
bailouts. “We’re literally witnessing the leveraged buyout of a country and
that’s why I call it a financial coup d’état, and that’s what the bailout is for,”
states Fitts…’
Commercial About The National Debt That Is Being Banned By Major Networks
The American Dream | “Of course, we owned most of their debt, so now they
work for us”.
Rand Paul Beats Conway To Become US Senator Rand Paul has beaten Jack
Conway in Kentucky – AP, ABC, NBC, CNN and Fox are all projecting an
easy Rand victory. This is a massive slap in the face to the establishment
smear machine that tried – and woefully failed – to derail his campaign with
an endless series of contrived smears that were parroted by the corporate
media and the Soros borg hive blogs like Media Matters, Daily Kos, and
Think Progress.
Angle Campaign Urges Last Minute Votes To Defeat Reid The bottom line is,
media exit polls are showing this race is a dead heat right now. This election
really is going to be decided in the next 4 hours. If you know ANYONE who
has not gotten out and voted, you have to call them right now, and make
sure they go vote for Sharron Angle.
Early Reports of Electronic Voting Machines Flipping Votes Early monitoring of

voting around the country is raising concerns about electronic voting
machines in key battleground states — especially in Pennsylvania, where
machines are registering Democratic votes instead of Republican, and vice
versa.
New Black Panther Seen At Polling Place Fox 29 News ran into a New Black
Panther Party member outside as the same Philadelphia polling place where
voter intimidation was reported two years ago. He was handing out a sample
ballot for the Democrats.
Gore Lies About Air Travel, Leaving Car On Idle Our post is accurate. The bottom
line is this: Al Gore continues to arrogantly refuse to make himself available
to journalistic inquiry. Mr. Gore continues to make travel and lifestyle
choices that reveal his belief that making do with less is for you and me, but
not for him.
Ron Paul Can Beat Obama In 2012 When even uber-leftist Chris Matthews slams
the President for being elitist and distant from the American people, you
know that the cult of Obama is finished for good, and that Barry’s political
career may not even survive long enough for him to run again in 2012,
providing the perfect opportunity for Ron Paul to outstrip a similarly
despised group of neo-con Republican candidates and become the people’s
President in two years’ time.
France and UK plan unprecedented military cooperation Reuters | Britain and

France will launch a broad defense partnership on Tuesday that includes
setting up a joint force and sharing equipment and nuclear missile research
centers, a French government source said.
‘Hated’ Sarkozy fears assassination amid strikes and protests across France Mail
Online | Nicolas Sarkozy (Little Nicky: The Pepe Le Pew of French Politics -
http://albertpeia.com/pepelepewoffrenchpolitics.htm ) fears he is so
disliked by his country that he could be assassinated.
Greece intercepts parcel bomb addressed to Sarkozy Reuters | Greek police

intercepted a booby-trapped parcel addressed to French President Nicolas
Sarkozy on Monday.
World Series: San Fran fans reaction Fox Sports [ I became a fan of San Fran the
minute I saw dumbya bush bumbling around and particularly when I saw poppy
and dumbya on the mound as dumbya threw that ball … Congratulations, ‘Giants!
]
Drudgereport: REPUBLICANS WIN SENATE SEATS: AL, AR, AZ, FL, GA, IA, ID, IL,
IN, OH, OK, KY, KS, LA, MO, ND, NH, PA, SC, SD, WI...
DEMS WIN: CA, CT, DE, HI, MD, NY, WV...
TOO CLOSE TO CALL: NV...
REPUBLICAN WINS OBAMA'S OLD SENATE SEAT...
JERRY BROWN IN...
BOXER IN...
BARNEY FRANK IN...
RUSS FEINGOLD OUT...
GOP celebrates...
DETAILS, MAP: GOVERNOR RACES...
DETAILS, MAP: HOUSE RACES...
New Black Panther Returns to Same Polling Place? Jerry Jackson, the same New
Black Panther member who intimidated voters in 2008 back at the same polling
station, instructs voter to vote straight Democrat, then proceeds to threaten same
voter.
Bernanke Faces More Congressional Scrutiny After Republican Election Gains...
PUMP: Fed Likely to Announce $500 Billion of Purchases...
'Biggest decision in decades'...
Fed easing may means 20% drop of dollar value...
'The end of dollar hegemony'...
Bombs more lethal than in Dec. 25 attempt (Washington Post) [ Truth be told,
there’s no shortage of pre-election skepticism … ] The package bombs
discovered on cargo flights last week contained far more explosive material
than the device that the alleged underwear bomber planned to use last
Christmas to down a Detroit-bound jetliner, officials said. [Did Obama Order
British Authorities To Find Non-Existent Ink Bomb? Paul Joseph Watson |
Only after President’s speech did East Midlands security officials reverse
earlier announcement that suspicious device was a dud.. The Cult Of
Obama Crashes And Burns Steve Watson | The hope has gone, the change
never came – now people are just pissed off. Toner Bomb Plot Used to
Empower CIA Kurt Nimmo | Absurd toner bomb plot provides excuse to
rationalize the global reach of the CIA into Arabian peninsula. CIA Stooge
Awlaki Prime Suspect Behind Plane Bomb Plot Paul Joseph Watson |
Evidence screams “false flag” as authorities seek to crush resistance
against invasive airport security measures, while Obama exploits event for
domestic and geopolitical gain. Israel Knew About Toner Bomb Plot Before
Devices Were Found Transportation minister hints state knew about mail
terror plot before it was publicly revealed Friday. ‘Since Thursday Israeli
representatives have been securing shipments to Israel from airports
worldwide,’ he says. Did Obama Order British Authorities To Find Non-
Existent Ink Bomb? After having examined the suspicious ink toner device
for six hours and found it to be a dud, bomb experts at East Midlands Airport
only reversed their decision after being ordered to re-inspect the package by
US authorities following President Obama’s Friday afternoon speech in
which he claimed that the devices did in fact contain explosives. No U.S.
Commercial or Private Plane left Yemen to the U.S. over last 48 hours;
Yemeni Official A Yemeni official told Yemen Post that no U.S. cargo aircraft
of any American company flew out of Yemen over the last 48 hours. Yemen
Insists No Packages Sent 48 Hours Prior to Toner Bomb Hysteria Kurt
Nimmo | As usual, the government has not done a very good job of making
the latest al-CIA-duh plot credible. Obama ‘Fake Terror’ Alert Story Hits #1
on Google Efforts to warn the population that the Obama Administration, like
the Bush Administration before it, has engaged in issuing fake terror alerts
has gone viral, with the search term “fake terror” reaching #1 on Google
Trends. It is yet another success in the Infowar, initiated on the Alex Jones
Show. Toner Bomb Plot Used to Empower CIA In addition to adding new
urgency and a fresh dose of hysteria to the flagging war on manufactured
terror, the toner bomb plot has provided an excuse to rationalize the global
reach of the CIA. Obama Issues Fake Terror Alert On Eve Of Elections As
we predicted on four separate occasions would happen, the Obama White
House has deliberately contrived a fake terror scare on the eve of the mid-
term elections in an effort to subdue the rampaging political appetite for
anti-big government candidates that threatens to sweep aside establishment
incumbents next week. ]
51 Iraqi worshipers, 7 troops killed in church siege (Washington Post) [ Yes, and
even more sounds of silence … which of course smells like napalm in the
morning … you know … that victory thing. ]
Federal applicants eye changes (Washington Post) [ How ‘bout real change that
comports with the reality of that proverbial ‘blackhole’ / sinkhole called the
federal bureaucracy, excepting law enforcement / prosecution. No new
federal hiring / wasteful do-nothing / make-work / accomplish less jobs!
Firing … that’s fine.] Officials back off Obama's hiring process overhaul
deadline, saying only some agencies are ready.
AIG moves ahead with efforts to repay taxpayers (Washington Post) (Oh come
on! … Wake up! … Are you really going to spin business reality in america into
some magnanimous gesture on the part new york sinkhole-based aig … The Calm
Before the Storm: Are We Approaching a Turning Point for the U.S. Economy?
[ The essence of the current scam / fraud is succinctly set forth thusly, albeit
tepidly … Snyder ‘…You see, the truth is that "quantitative easing" is not only
just a way to stimulate the economy, it is also a way to give backdoor bailouts to
the big banks without having to go through the U.S. Congress. In a previous
article, I described how this works....
1) The big U.S. banks have massive quantities of junk mortgage-backed

securities that are worth little to nothing that they desperately want to get rid of.
2) They convince the Federal Reserve (which the big banks are part-owners of) to
buy up these "toxic assets" at significantly above market price.
3) The Federal Reserve creates massive amounts of money out of thin air to buy
up all of these troubled assets. The public is told that all of this "quantitative
easing" is necessary to stimulate the U.S. economy.
4) The big banks are re-capitalized and have gotten massive amounts of bad
mortgage securities off their hands, the Federal Reserve has found a way to
pump hundreds of billions (if not trillions) of dollars into the economy, and
most of the American people are none the wiser…’ ] QE2 Is Not A Recovery
Plan, It’s A Stealthy Scheme To Prepare For The Next Bank Bailout [ Next
bailout? How ‘bout they’re still working on the last one … you know, that
now ‘marked to anything’ multi-trillion dollar thing … I think people fail to
recognize / realize / appreciate the magnitude of the last / continuing fraud
by the criminally insane lunatics on wall street and accomplices. ] Pragmatic
Capitalist | I’ve shown in rather elaborate detail in recent weeks that
quantitative easing does not help the real economy generate a sustained
recovery.) Insurance giant raises billions by selling of one of its crown
jewels.
The Calm Before the Storm: Are We Approaching a Turning Point for the U.S.
Economy? [ The essence of the current scam / fraud is succinctly set forth
thusly, albeit tepidly … Snyder ‘…You see, the truth is that "quantitative easing"
is not only just a way to stimulate the economy, it is also a way to give backdoor
bailouts to the big banks without having to go through the U.S. Congress. In a
previous article, I described how this works....

pump hundreds of billions (if not trillions) of dollars into the economy, and most
of the American people are none the wiser…’ ] Snyder ‘An eerie calm has
descended upon world financial markets as they await perhaps the two most
important financial events of the year this week. On Tuesday, investors will be
eagerly awaiting the results of one of the most anticipated midterm elections in
U.S. history. On Wednesday, the Federal Reserve is expected to end months of
speculation by formally announcing the details of a new round of quantitative
easing. If either the election or the meeting of the Federal Reserve open market
committee delivers a highly unexpected result, it could have a dramatic impact on
world financial markets. In fact, many are looking at this week as a potential
turning point for the U.S. economy. The decisions that are made or not made this
week could set us down a road from which the U.S. economy may never
recover.At this point, it looks like the Republicans will take control of the U.S.
House of Representatives and will pick up a number of U.S. Senate seats as
well.There are many in the financial world who already consider Barack Obama to
be the most "anti-business" president in U.S. history, so a defeat for the
Democrats on Tuesday would be greatly welcomed by many on Wall Street.
Barack Obama's decline in popularity since he was elected has been absolutely
stunning. According to Gallup, Barack Obama had an average approval rating of
just 44.7% during the seventh quarter of his presidency, which was a brand new
low. In fact, Obama's average approval rating has fallen during every single
quarter since he took office. Things have gotten so bad for Obama that one new
poll has found that 47% of Democrats now think that Barack Obama should be
challenged for the 2012 Democratic presidential nomination. However, if the
Democrats were able to do surprisingly well on Tuesday, it would not only shock
the political pundits, but it would also likely put world financial markets in a very
bad mood. If the Republicans do very well on Tuesday, it will likely mean that
there will be no more extensions for those receiving long-term unemployment
benefits. Some state governments are already anticipating this and are making
preparations. For example, armed security guards are now being posted at all 36
full-service unemployment offices in the state of Indiana. It is estimated that
approximately 2 million Americans will lose their unemployment insurance
benefits during this upcoming holiday season if Congress does not authorize
another emergency extension of benefits by the end of November. If the
Republicans do very well on Tuesday, it would make it much more likely that the
extension will not happen.But if millions of unemployed Americans suddenly find
themselves without any unemployment checks, that is only going to cause anger
and frustration to grow.Either way, the unfortunate truth is that this election is not
going to change much.Over the past five elections, incumbents have been re-
elected to the U.S. House of Representatives at an average rate of 96 percent.
This time will be a little different of course, but not that much different. The sad
truth is that we are still likely to see about 80 percent of the exact same faces
going back to the U.S. Congress for the next session.However, even if the
American people could somehow vote out every single member of Congress, it
would still not do much to fundamentally change our economic situation because
the U.S. Congress does not run the economy ,and neither does the President.Of
course both of those institutions can influence the U.S. economy, but it is
actually the Federal Reserve that runs the economy.The Federal Reserve controls
the money supply. The Federal Reserve controls our interest rates. If the U.S.
government wants more money it has to go get it from the Federal Reserve. It is
the Federal Reserve that is tasked with the mandate of keeping unemployment
low while also keeping inflation at a "reasonable" level.But these days, Federal
Reserve officials don't really seem to be that concerned about the dangers of
inflation. In fact, several top Federal Reserve officials have come out in recent
weeks and have made public statements not only advocating more quantitative
easing, but also suggesting that inflation is not a danger because it is actually
"too low" right now.In fact, there have been some rumblings that many officials at
the Fed would actually welcome more inflation because they think that it would
somehow stimulate the economy. In fact, a Federal Reserve paper that was
released in September actually floated the idea that a spike in oil prices would be
quite good for the U.S. economy.And these are the people running our economy?
Are we all caught in an episode of The Twilight Zone?Well, as far as rising oil
prices are concerned, the Fed will almost surely get its wish. As I have written
about previously, the price of oil is almost certainly heading to 100 dollars a
barrel. But if the price of oil shoots up, isn't that going to cause significant
inflationary pressure on the prices of thousands of other goods and services? Of
course. Unfortunately, very few of our leaders seem too concerned about inflation
or about protecting the value of the U.S. dollar these days. In fact, now even the
IMF is publicly proclaiming that the U.S. dollar is "overvalued". What a mess. But
there is another aspect of a new round of "quantitative easing" that the American
people really wouldn't like if they could actually figure out what is going on. You
see, the truth is that "quantitative easing" is not only just a way to stimulate the
economy, it is also a way to give backdoor bailouts to the big banks without
having to go through the U.S. Congress. In a previous article, I described how
this works....

pump hundreds of billions (if not trillions) of dollars into the economy, and most
of the American people are none the wiser.
Now how do you think the American people would feel about "quantitative
easing" if they really understood all this?But unfortunately, most Americans will
be watching the election results on Tuesday night without having even a basic
understanding of how our economy is really run.Already, there are a ton of signs
that the U.S. economy is heading in a very bad direction, and dumping a handful
of Congress critters out of office might feel good, but it isn't going to do much to
really change our economic problems.The American people desperately need to
be educated about how our financial system really works. But unfortunately, most
Americans will likely not wake up until the whole house of cards comes crashing
down.’
Bank Bailout [ Next bailout? How ‘bout they’re still working on the last one
… you know, that now ‘marked to anything’ multi-trillion dollar thing … I
think people fail to recognize / realize / appreciate the magnitude of the last /
continuing fraud by the criminally insane lunatics on wall street and
accomplices. ] Pragmatic Capitalist | I’ve shown in rather elaborate detail in
Expecting Weakness: Why the Market's Sugar High Is About to End
Sell the News … Long overdue?
Look Out Below - Reiterated
UPDATE 5-Ambac says may go bankrupt this year; shares sink
Fraud Caused the 1930s Depression and the Current Financial Crisis Robert
Shiller – one of the top housing experts in the United States – says that the
mortgage fraud is a lot like the fraud which occurred during the Great
Depression.
The Founding Fathers’ Vision Of Prosperity Has Been Destroyed Everyone knows
that the American colonists revolted largely because of taxation without
representation and related forms of oppression by the British. But –
according to Benjamin Franklin and others in the thick of the action – a little-
known factor was actually the main reason for the revolution.
Not Just Stocks … High Frequency Traders Might Be Manipulating Futures,

Options, Bonds, Currency and Commodities Markets As Well We know that
high frequency trading is used to manipulate the stock market. The
prevalence of high frequency trading in other markets means that it might be
used to manipulate those markets – perhaps virtually all markets – as well.
Exclusive: 4 Dealers Respond With “$1+ Trillion” To Fed Reverse Inquiry Into
How Much QE2 Is Necessary Yesterday we made a big stink over the Fed’s
reverse inquiry into the PD community over how much QE2 it should launch.
Today, we find out what the distribution is: as Merrill’s Harley Bassman
points out: “Four dealers are predicting a $1+ Trillion buy program.” It is
good to finally know what the bogey is.
Is The Fed TRYING To Force A Surge In Commodity Prices And Input Costs?
Diapason Explains Why Hyperinflation Is Blackhawk Ben’s End Goal The
Fed is hoping for not only mild inflation, but an outright surge in prices.
Michael Hudson: Debt Grows Exponentially, While the Economy Only Grows In
An S-Curve Michael Hudson is a highly-regarded economist. He is a
Distinguished Research Professor at the University of Missouri, Kansas City,
who has advised the U.S., Canadian, Mexican and Latvian governments as
well as the United Nations Institute for Training and Research. He is a former
Wall Street economist at Chase Manhattan Bank who also helped establish
the world’s first sovereign debt fund.
Expecting Weakness: Why the Market's Sugar High Is About to End
Sell the News … Long overdue?
Look Out Below - Reiterated
Is The Fed TRYING To Force A Surge In Commodity Prices And Input Costs? Diapason
Explains Why Hyperinflation Is Blackhawk Ben’s End Goal The Fed is hoping for not
only mild inflation, but an outright surge in prices.
Dollar sinks before ‘busiest week in decades’ The dollar hit a 15-year low point
against the yen on Monday and sank against the euro ahead of “the busiest
week in decades” during which the US Federal Reserve could announce
fresh stimulus measures.
Red alert Metals Report: Silver Set To Explode Red Alert Metals Report: The
biggest names in the precious metals world say the proce of silver is set to
EXPLODE higher.
Iran Announces It Has Converted 15% Of Its $100 Billion+ In FX Reserves Into
Gold As of today, one of the world’s top oil exporters announced that has
exchanged about $15 billion of its FX reserves into gold.
The Calm Before The Storm An eerie calm has descended upon world financial
markets as they await perhaps the two most important financial events of
the year this week.
Bank Bailout Pragmatic Capitalist | I’ve shown in rather elaborate detail in
Dollar sinks before ‘busiest week in decades’ AFP | The dollar hit a 15-year low
point against the yen and sank against the euro ahead of “the busiest week
in decades” during which the US Federal Reserve could announce fresh
stimulus measures.
Why Is Indiana Putting Armed Security Guards Into 36 Unemployment Offices

Across The State? Economic Collapse | Did you ever think that things in America
would get so bad that we would need to put armed guards into our
unemployment offices?
QE2 Is Not A Recovery Plan, It’s A Stealthy Scheme To Prepare For The Next Bank
Bailout [ Next bailout? How ‘bout they’re still working on the last one … you know, that
now ‘marked to anything’ multi-trillion dollar thing … I think people fail to recognize /
realize / appreciate the magnitude of the last / continuing fraud by the criminally insane
lunatics on wall street and accomplices. ] Pragmatic Capitalist | I’ve shown in rather
elaborate detail in recent weeks that quantitative easing does not help the real economy
National / World
Did Obama Order British Authorities To Find Non-Existent Ink Bomb? Paul Joseph
Watson | Only after President’s speech did East Midlands security officials
reverse earlier announcement that suspicious device was a dud.
State Elections: Where you can make a difference Rob Dew | Educate yourself on
local and state elections and vote on Tuesday in Austin, Texas.
The Cult Of Obama Crashes And Burns Steve Watson | The hope has gone, the
change never came – now people are just pissed off.
Toner Bomb Plot Used to Empower CIA Kurt Nimmo | Absurd toner bomb plot
provides excuse to rationalize the global reach of the CIA into Arabian
peninsula.
CIA Stooge Awlaki Prime Suspect Behind Plane Bomb Plot Paul Joseph Watson |
Evidence screams “false flag” as authorities seek to crush resistance
against invasive airport security measures, while Obama exploits event for
domestic and geopolitical gain.
Israel Knew About Toner Bomb Plot Before Devices Were Found Transportation
minister hints state knew about mail terror plot before it was publicly
revealed Friday. ‘Since Thursday Israeli representatives have been securing
shipments to Israel from airports worldwide,’ he says.
Did Obama Order British Authorities To Find Non-Existent Ink Bomb? After
having examined the suspicious ink toner device for six hours and found it
to be a dud, bomb experts at East Midlands Airport only reversed their
decision after being ordered to re-inspect the package by US authorities
following President Obama’s Friday afternoon speech in which he claimed
that the devices did in fact contain explosives.
The Cult Of Obama Crashes And Burns The image of one man begging on his
knees as Obama’s convoy pulls away from a restaurant in Chicago
yesterday speaks volumes about how far the man’s status has fallen in the
eyes of everyday Americans.
Toner Bomb Plot Used to Empower CIA In addition to adding new urgency and a
fresh dose of hysteria to the flagging war on manufactured terror, the toner
bomb plot has provided an excuse to rationalize the global reach of the CIA.
Barry May Not Run in 2012. Does It Matter? According to WorldNetDaily, an

influential Democrat operative reports that some “senior personalities in the
Democratic Party have discussed with President Obama’s advisers the
possibility of him not running for re-election in 2012.” It would be best for
the party if Obama did not seek re-election in 2012, and more than one
discussion has been held on the matter with Obama’s top advisers,
according to the party operative, writes Aaron Klein.
Half of Democrats Think Obama Should Face Primary An AP-Knowledge

Networks poll finds that 47% of Democrats think Presidential Obama should
be challenged for the 2012 Democratic presidential nomination while 51%
say he should not be opposed.
Barry loses his cool: Angry Obama yells BACK at hecklers… as new poll shows
his own party isn’t sure he should be President in 2012 The pressure is on
Barack Obama – and it is starting to show.
US midterm elections: Barack Obama’s world turned upside down as Democrats

face electoral disaster By abandoning his own rhetoric of bipartisanship,
President Obama divided America and set the course for a heavy
Democratic defeat in Tuesday’s midterm elections, argues Toby Harnden.
No U.S. Commercial or Private Plane left Yemen to the U.S. over last 48 hours;
of any American company flew out of Yemen over the last 48 hours.
IMF Tax Tribunals Coming to America Soon? Kurt Nimmo | The plan is not to
raise tax revenue. It is to destroy nations and usher in world government.
Yemen Insists No Packages Sent 48 Hours Prior to Toner Bomb Hysteria Kurt
Nimmo | As usual, the government has not done a very good job of making
the latest al-CIA-duh plot credible.
Why Is Indiana Putting Armed Security Guards Into 36 Unemployment Offices

Across The State? The Economic Collapse | Could we soon see economic
riots similar to what we have seen in Greece and France?
Toner Bomb Results in More Airport Molestation Infowars.com | The idea is to get
you accustomed to physically submitting to government thugs at airports
and soon enough at the post office and local mall.
Barry May Not Run in 2012. Does It Matter? Kurt Nimmo | The show will go on
regardless.
Suspicious Package to U.S. not from Yemen; Yemenia Air Cargo Director
Mohammed al-Shaibah, Air Cargo Director for Yemenia Airways said to
Yemen Post, “No UPS cargo plane left Yemeni lands over the land 48 hours.
These accusations are false and baseless.”
UAE rejects US claims on Flight 201 The United Arab Emirates’ Civil Aviation
Authority has rejected claims that a US-bound Emirates’ flight from Dubai
contained “suspicious” parcels from Yemen.
Pat-Downs May Soon Become Norm At Airports Friday’s UPS scare is prompting
increased security measures at the nation’s airports. That could include
newly introduced pat-down procedures.
Obama ‘Fake Terror’ Alert Story Hits #1 on Google Efforts to warn the population
that the Obama Administration, like the Bush Administration before it, has
engaged in issuing fake terror alerts has gone viral, with the search term
“fake terror” reaching #1 on Google Trends. It is yet another success in the
Infowar, initiated on the Alex Jones Show.
Obama Issues Fake Terror Alert On Eve Of Elections As we predicted on four

separate occasions would happen, the Obama White House has deliberately
contrived a fake terror scare on the eve of the mid-term elections in an effort
to subdue the rampaging political appetite for anti-big government
candidates that threatens to sweep aside establishment incumbents next
week.
Toner Bomb Results in More Airport Molestation Infowars.com | The idea is to get
you accustomed to physically submitting to government thugs at airports
and soon enough at the post office and local mall.
Barry May Not Run in 2012. Does It Matter? Kurt Nimmo | The show will go on
regardless.
Powerful EU Nations May Reform “Mission Impossible” Treaty in Secret Eric Blair
| Institutions claiming to be unions like the EU are invariably based on
hierarchy.
Mainstream Media Now Begins Reporting on BPA Dangers After Denying

Previous Evidence Anthony Gucciardi | With mainstream media forced to
report on this five-year study exposing BPA as a fertility killer, perhaps the
result will be a nationwide ban of the toxic substance.
Union Mob Surrounds We Are Change Member for Heckling Clinton Aaron Dykes
| A gang of union thugs in yellow shirts literally surround and intimidate a
man who heckled Bill Clinton with questions about the Federal Reserve.
Drudgereport: NEW VILLAIN: Al-Qaeda bombmaker 'leading suspect' in Yemen

parcel plot...
Female Suspect Released, No Charges...
LAWYER: Being set up...
FEAR: White House warns there could be more 'in the mail'...
Unemployment Offices To Add Armed Guards...
99 Weeks of Benefits Set To End...
USA faces first scrutiny by UN rights council...
Dem attacks Pelosi as 'authoritarian'...
Expresses 'heartbreak' over failure...
Suicide bomber in Iraq kills at least 26 people, many of them police (Washington
Post) [ Ah, yes … those sounds of silence … the birthing of a new american-
style democracy … like napalm in the morning … smells like victory …
(lucky for them bush / bushies / neo-cons lied about those wmd’s) ]
Obama: Suspicious packages are a 'credible terrorist threat' (Washington Post)

[October suprprise anyone … still October … trick or treat … there are skeptics …
then there are some who’ll say … just jewish synagogues, no big deal … nothing
of strategic value … healthy dose of skepticism … Obama ‘Fake Terror’ Alert
Story Hits #1 on Google Aaron Dykes Infowars.com October 29, 2010 Efforts to
warn the population that the Obama Administration, like the Bush Administration
before it, has engaged in issuing fake terror alerts has gone viral, with the search
term “fake terror” reaching #1 on Google Trends. It is yet another success in the
Infowar, initiated on the Alex Jones Show. As we are just days out from the 2010
midterm elections, voters must realize that the establishment has willfully
engaged in hyping up false alerts to scare the public into believing that we are
under siege by potential terrorist acts at all moments. Various “officials” have
been warning that an attack is likely to occur for weeks now, and it is no surprise
to see the Obama Administration trying to use the fear to its advantage. Recall
that Obama advisor and former top Clinton official, Robert Shapiro, alluded to the
idea that only a terror attack could save Obama’s presidency earlier in the year.
“The bottom line here is that Americans don’t believe in President

Obama’s leadership,” said Shapiro, adding, “He has to find some
way between now and November of demonstrating that he is a leader
who can command confidence and, short of a 9/11 event or an
Oklahoma City bombing, I can’t think of how he could do that.”
Read the original story by Paul Joseph Watson here, as it has been updated.
The general scare of the fake terror alert is all the more alarming, as President
Obama has gone on to contradict announcements from his own
administration, claiming that the suspicious package “did apparently
contain explosive material” in a press conference. This, after it was already
admitted the suspicious package, which originated from the UK, was
harmless and contained no explosives Obama Issues Fake
Terror Alert On Eve Of Elections Paul Joseph Watson | Establishment media
fearmongers about “mail bomb plot” despite no bombs being found.
Corporate Media On High Alert Over “Manipulated” Toner Cartridge On UK
Plane Kurt Nimmo | Officialdom and authorities jack up the scary pre-election
rhetoric ]
Amid mortgage mess, some owners blindsided (Washington Post) [ Blindsided

or just plain blind, the reality is amounts totaling more than all the
mortgages in the nation have gone down and into that sinkhole / fraud called
wall street (never disgorged) and more each day as the computerized high
frequency programmed trade scam / fraud continues even as I believe
they’ve received hard fiat Weimar dollar currency for worthless toxic paper /
assets / securities now marked to anything. That money has to be made up
and come from some real place and hence, the scrounging around we’re
seeing by banks among others and which situation will worsen as problems
engendered by the debased currency and fed pomo, etc., come home to
roost. ] Homeowners are increasingly tripped up by mortgage lenders that
press ahead with foreclosures regardless of any effort they make to provide
borrowers with relief on unaffordable mortgages. Valarie Stovall had worked
out payment plans with her lender, yet still received an eviction notice.
White House considering new strategy on tax cuts (Washington Post) [ Strategy?
You’ve really got to worry when the pervasively corrupt, incompetent,
defacto bankrupt u.s. government starts talking strategy … like perpetual
wars, ie., Iraq, Afghanistan, Pakistan, etc.. Race to the bottom, who can get
america more bankrupt faster? Not that I’m for the taxes used to fund these
‘strategies’. It’s really doing the same wasteful things with less. Then there
are the private agendas. ] Sources say it would call for permanent extension
of cuts that benefit families earning less than $250,000, and temporary
extension of cuts on income above that.
GDP data show slow growth (Washington Post) [ What data … whose data … then
there’s the ‘increased record deficit’ factor and is the insurmountable nature
and service of same economically viable and worth the minutia for pre-
election spin … I don’t think so! … ( The scary actual U.S. government debt
Neil Reynolds | The amount is $200-trillion — 840 per cent of current GDP) .]
Economy remains stuck, continuing a pattern of steady growth that's too
slow to bring down joblessness.
U.S.A. - Home of Financial Absurdities Simon Maierhofer, On Friday October 29,

2010, 6:41 pm EDT Throughout mankind's history, scales have been a symbol of
equality. As much as commoners rely on scales to be treated fairly, 'ueber commoners'
try to escape the scales of justice and equality and want to be measured by different
and better standards.In his Gettysburg Address, Abraham Lincoln exhorted his listeners
to ensure the survival of a government of the people, by the people, for the people. It
seems like survival of the fittest like forces have turned a government of, by and for the
people into a government of, for and by special interest groups.
No More Robin Hood
This week we read that even the Robin Hood of investors, creates his own rules.
Warren Buffett - the only candidate to even remotely resemble a Robin Hood of Wall
Street - had a friendly exchange with the SEC about the treatment of actual
losses.Warren Buffet's Berkshire Hathaway was sitting on $1.86 billion in losses caused
by declining Kraft and US Bancorp stock. The losses were more than 12 months old
and according to current accounting rules had to be written down. Perhaps Warren had
seen how Wall Street is allowed to bend accounting rules to its favor (more about that in
a moment) and thought: 'what they can do I can do better.' In short, Berkshire didn't
write down the $1.86 billion in losses because ... drum roll ... as Berkshire's Chief
Financial Officer Marc Hamburg's reasoned: ‘We believe it is reasonably possible that
the market prices of Kraft Foods and U.S. Bancorp will recover to our cast within the
next one to two years assuming that there are no material adverse events affecting
these companies or the industries in which they operate.' In other words, Berkshire
didn't want to write down losses, because under the right circumstances there's a fair
chance that stock prices will recover.
Perfect Conditions - 100% Profitability
Of course, under the right conditions any loss could reverse itself. But, because we
don't live in a perfect world, we have accounting rules. The final numbers are designed
to help investors evaluate a company's current financial health. If the Doctor tells you
that you have high cholesterol, do you tell him: 'Don't worry, under the perfect conditions
I'll eat only raw vegetables,' when in reality you live on burgers and fries and should be
on a double dose of cholesterol meds? Interestingly - and very smartly - Warren
Buffett's new knight - Todd Combs - has stolen the headlight and absorbed the attention
of what otherwise could turn into a full-fledged accounting scandal.
Further Implications
Courtesy of the post-2007 credit contraction, Wall Street Banksters, the administration,
and reputable companies have become quite adept at the denial and cover up
approach. Case in point, Fannie and Freddie. In 2008, management for the ailing
housing giant denied financial trouble. On Sunday, September 7, 2008, the government
seized control of Fannie and Freddie. Nevertheless, stocks rallied on Monday the
morning after. Despite stock's (NYSEArca: VTI - News) party mood, the ETF Profit
Strategy Newsletter considered banks (NYSEArca: KBE - News) and financial
institutions (NYSEArca: XLF - News) a 'downward spiral with no stop-loss provision' and
predicted Dow (DJI: ^DJI) 7,500 previously in September 2008. As stocks quickly
tumbled to Dow 7,500, the government became desperate. Real estate related losses
were piling up; investors lost confidence in the financial system and drove Washington
Mutual out of business. The problem was too big to fix, so the administration forced the
Financial Accounting Standards Board to change rule 157. Obviously, the fix is only
topical. If it wasn't, why would Fannie and Freddie need an additional $215 billion in
aid? The 'new and improved' rule 157 allowed Banksters to value assets at what they
might be worth in the future. If bank A purchased a portfolio of real estate (NYSEArca:
IYR - News) for $10 million in 2006 and lost $6 million because the assets turned toxic,
bank A is allowed to value the portfolio just below $10 million. The very real loss is not
included in the current earnings numbers.
Can You Trust Earnings
The real question is whether you can trust reported earnings? If Berkshire, along with
most banks and financial conglomerates, has the legal right to fudge their earnings we
may rightly wonder who else is employing this convenient accounting trick? Some would
call them stupid if they didn't. Ironically, Citigroup's profits exceeded estimates because
they reduced bad loan provisions. JPMorgan on the other hand expects mortgage
buybacks (related to the foreclosure disaster) to cost lenders $120 billion. To
emphasize, Citigroup reducing its bad loan reserves would be like an insurance
company reducing its natural disaster fund right before hurricane season. Be that as it
may, the S&P (SNP: ^GSPC), Dow Jones (NYSEArca: DIA - News), and Nasdaq
(Nasdaq: ÎXIC) continue to rally. The Nasdaq 100 (Nasdaq: QQQQ - News) has
already shot past its April 2010 recovery high, while the Dow and S&P (NYSEArca: IVV
- News) are within striking distance.
Expect the Unexpected Following a horrendous August, investors were expecting a
terrible September and/or October. The opposite happened. As we approach
November, we hear that this month usually kicks off the most profitable time of the year.
Fourth quarter institutional cash inflows tend to result in the best consecutive three-
month period. As we've discussed here in the past, institutions are not the only ones
that provide liquidity right now. The Federal Reserve via its POMO purchases is another
one (detailed analysis available in the November issue of the ETF Profit Strategy
Newsletter). This extra liquidity is not to be underestimated.
An Extra Black Swan
As we've experienced many times, the market tends to surprise the investing masses -
most of which are bullish right now. A decline from current prices would certainly be a
surprise. To the average investor, who's betting on QE2 to lift the economy and
personal investments, a decline would indeed represent a 'Black Swan.' As noted in any
chart, this season of the year, sentiment, and the market's behavior indicates that the
next couple of weeks are likely to be pivotal for the upcoming months. As of yet, the
market has not given away its true intentions, but it's sending subtle clues. Some recent
support/resistance points are likely to turn into trigger levels, which once activated
should fuel a move into that direction. The semi-weekly Technical Forecast (part of the
ETF Profit Strategy Newsletter) includes the latest technical analysis along with trigger,
target, safety and stop-loss levels designed to navigate the current environment
profitably.
The scary actual U.S. government debt Neil Reynolds | The amount is $200-trillion
— 840 per cent of current GDP.
The Fed Bought Fraud Greg Hunter | The Fed just spent the last 20 months buying
a trillion dollars in mortgage fraud.
Worldwide Food Crisis Looms As Forecasters Predict Record High Prices

PreventDisease | “World food price volatility remains significant and in some
countries, the volatility is adding to already higher local food prices.”
Signs Hyperinflation Is Arriving Gonzalo Lira | The collapsing dollar will make 2012
the really really bad year of our Global Depression.
The Founding Fathers’ Vision Of Prosperity Has Been Destroyed Everyone knows
that the American colonists revolted largely because of taxation without
representation and related forms of oppression by the British. But –
according to Benjamin Franklin and others in the thick of the action – a little-
known factor was actually the main reason for the revolution.
Not Just Stocks … High Frequency Traders Might Be Manipulating Futures,

Options, Bonds, Currency and Commodities Markets As Well We know that
high frequency trading is used to manipulate the stock market. The
prevalence of high frequency trading in other markets means that it might be
used to manipulate those markets – perhaps virtually all markets – as well.
Exclusive: 4 Dealers Respond With “$1+ Trillion” To Fed Reverse Inquiry Into
How Much QE2 Is Necessary Yesterday we made a big stink over the Fed’s
reverse inquiry into the PD community over how much QE2 it should launch.
Today, we find out what the distribution is: as Merrill’s Harley Bassman
points out: “Four dealers are predicting a $1+ Trillion buy program.” It is
good to finally know what the bogey is.
Gold Will Outlive Dollar Once Slaughter Comes The world’s monetary system is
in the process of melting down. We have entered the endgame for the dollar
as the dominant reserve currency, but most investors and policy makers are
unaware of the implications.
Art Hogan of Jefferies, while being interviewed by Frank Motek indicated that next
week will probably be a ‘sell on the news’ week, the absence of that rumor /
b*** s*** story, viz., the election results, being the precipitating factor [come
on …. Does anybody really believe that election results at this point in
declining, defacto bankrupt america’s history means anything at all (bi-
partisan corruption, perpetual war policy, incompetence, etc, in all three
branches of government)]. He was promptly cut off [they probably used an
att line ( corrupt jersey based att now owned by war criminal bushie bonkers
Texas based sbc does the government bidding which impacts on service
and privacy)].
[video] Weisberg: More Selling in Near Term
This is an especially great opportunity to sell / take profits! Suckers’ rally into the
close to keep suckers suckered (easy for the wall street frauds to do with
just a mouse click / push of the button). Keep in mind, the totally mindless
blather from the ‘cottage industries’ of and fraudulent wall street itself in
talking up lower P/E multiples when the same is a direct result of the
debasement of the dollar and the consequent manipulation / translation (not
real, see Davis, infra) which preceded the financial crisis / last crash.
Unemployment, trade, deficit, etc., numbers continue decidedly worse than
expected along with other negative data (and in the ‘wrong direction’, that
spin accorded ‘down but not as bad as before’ b*** s*** ) yet the market has
rallied like no tomorrow with used home foreclosure / distressed sales,
though abated owing to ‘foreclosuregate’, the other ‘heralded’ good news.
Moreover, the dumbo lemmings of Europe have jumped on the fraudulent
defacto bankrupt american crazy train propelled to the precipice also as if no
tomorrow. This is about keeping the suckers sucked in with the help of a
market-frothing pre-election debased dollar for favorable currency
translation and paper (but not real when measured in, ie., gold, etc.) profits
which preceded the last crisis, inflating a bubble as in the last crisis to
facilitate the churn-and-earn, particularly with computerized (and high
frequency) trades and which commissions they’ll get again on the way
down. There is nothing to support these overbought stock prices,
fundamentally or otherwise. These are desperate criminals ‘at work’. Even
wall street shill, the senile Buffett is saying we’re still in a recession
(depression). Buffett: We're Still in a Recession [ Wow! A moment of lucidity
from senile Buffet which belies his prior ‘rosy wall street shill talk’, but his
greater candor is welcomed nonetheless although the ‘d’ (for depression)
word is more appropriate and accurate.] Roche ‘Warren Buffett disagrees
with the NBER. He says we’re still in a recession and likely to remain in a
recession for quite a while. These comments are far more tempered than the
ones that were published last week. Of course, my favorite part in this clip is
where he says the U.S. government did the right thing in responding to the
crisis. They certainly did the right thing for Berkshire Hathaway (BRK.A)
shareholders. Whether or not they did the right thing for America is a whole
other story…’ [ And, of course we now know that it wasn’t the right thing for
america … The question inevitably becomes, ‘Who’s manipulating who,
what, and why? After all, we know defacto bankrupt america’s pervasively
corrupt! ] Wall St advances on dollar weakness, Fed bets (Reuters) – [ Look
at the aforementioned headline. Isn’t anyone getting the sense of how totally
preposterous this is? Then there’s the ‘market frothing’ used home
foreclosure / distressed home sales number … previous wall street b*** s***
story, the election and consequent gridlock story … as if they’re
substantially different …perpetual war, runaway nation-bankrupting record
deficit spending, incompetence, corruption (still no prosecution of the wall
street frauds), etc. What total b*** s***! ] U.S. stocks rose to a five-and-a-half
month high on Monday as a falling dollar, partly driven by expectations of
further stimulus by the Federal Reserve, prompted investors to buy riskier
as... [ Davis: ‘… all profits are inflated by 10% (from falling, debased dollar)
and that 10% is the E that gets divided from the P and gives us a much
better price/multiple to hang our hats on and that gets investors to
BUYBUYBUY …’ Previous pre-crash: The bull market that never was / were
beyond wall street b.s. when measured in gold ] This is an especially
great opportunity to sell / take profits (these lower dollar, hyperinflationary
currency manipulations / translations to froth paper stocks will end quite
badly as in last crash)! This is a global depression. This is a secular bear
market in a global depression. The past up moves were manipulated bull
manipulated bubble as has preceded the prior crashes with great regularity
that the wall street frauds and insiders commission and sell into. This is a
typical wall street ‘programmed computerized high-frequency churn and
earn pass the hot potato scam / fraud as in prior crashes ( widely reported,
high-frequency trading routinely accounts for more than 50% of daily U.S.
equity trading volume and regularly approaches 70%. )’. This national
decline, economic and otherwise, will not end until justice is served and the
wall street frauds et als are criminally prosecuted, jailed, fined, and
disgorgement imposed.The Stock Market's Long Decline Has Begun Smith
‘The Fed's campaign to boost the risk-trade in equities by destroying the
dollar has reached its limits. Now gravity will take hold as stocks enter a
Long Decline.On Monday, Daily Finance published my article Is the Market
Ready to Roll Over? These Signs Say Yes.
We've Already Had the Bang. The Bucks Are Yet to Come
Gold Soars as the Fed Contemplates More QE

In Investment Survey, Gold Shines Brightest in Five- and Ten-Year Studies
What We're Thinking About in This Market Environment. (And Where Is the Market
Headed?)
Surprise!!! Cash for Clunkers Didn't Work, Say Economists A new working paper
from the National Bureau of Economic Research by Atif Mian and Amir Sufi,
titled "The Effects of Fiscal Stimulus: Evidence from the 2009 'Cash for
Clunkers' Program," the authors make a crystal-clear case that the widely-
derided Cash for Clunkers initiative didn't work.At all.In fact, it had the
opposite effect than what was intended.Mian and Sufi write:"A key rationale
for fiscal stimulus is to boost consumption when aggregate demand is
perceived to be inefficiently low. We examine the ability of the government
to increase consumption by evaluating the impact of the 2009 “Cash for
Clunkers” program on short and medium run auto purchases. Our empirical
strategy exploits variation across U.S. cities in ex-ante exposure to the
program as measured by the number of “clunkers” in the city as of the
summer of 2008. We find that the program induced the purchase of an
additional 360,000 cars in July and August of 2009. However, almost all of
the additional purchases under the program were pulled forward from the
very near future; the effect of the program on auto purchases is almost
completely reversed by as early as March 2010 – only seven months after
the program ended. The effect of the program on auto purchases was
significantly more short-lived than previously suggested. We also find no
evidence of an effect on employment, house prices, or household default
rates in cities with higher exposure to the program."
National / World
Union Mob Surrounds We Are Change Member for Heckling Clinton Aaron Dykes |
A gang of union thugs in yellow shirts literally surround and intimidate a
man who heckled Bill Clinton with questions about the Federal Reserve.
Obama ‘Fake Terror’ Alert Story Hits #1 on Google Aaron Dykes | Efforts to warn
the population that the Obama Administration, like the Bush Administration
before it, has engaged in issuing fake terror alerts has gone viral.
Obama Issues Fake Terror Alert On Eve Of Elections Paul Joseph Watson |
Establishment media fearmongers about “mail bomb plot” despite no bombs
being found.
Corporate Media On High Alert Over “Manipulated” Toner Cartridge On UK Plane

Kurt Nimmo | Officialdom and authorities jack up the scary pre-election
rhetoric.
Rand Paul Surges Ahead Of Conway Despite Stomp Smear Paul Joseph Watson |
Latest poll shows Paul 9 points ahead, illustrating futility of establishment
demonization campaign

contrived a fake terror scare on the eve of the mid-term elections in an effort
to subdue the rampaging political appetite for anti-big government
candidates that threatens to sweep aside establishment incumbents next
week.
Hysteria Runs Rampant, Terrorists Win: NORAD escorting aircraft to New York’s
JFK airport Shame NORAD wasn’t so alert on 9/11, allowing Flight 77 to fly
half way across the country and back before it slammed into the Pentagon.
They weren’t so keen to intercept airliners then.
James Cameron and Google CEO: Questioning Warming Science is “Criminal”

Google CEO Eric Schmidt and film director James Cameron recently
concurred that people who question the science of anthropogenic global
warming are, in their opinions, “criminal”.
Bad Attitude Toward Officialdom? No Second Amendment in New York In New

York, you may be denied your Second Amendment right to own a rifle if
administrative officials decide you are not of good moral character.
Rand Paul Surges Ahead Of Conway Despite Stomp Smear Despite the Conway
campaign shamelessly exploiting the notorious stomp on MoveOn activist
Lauren Valle for political grist, while failing to mention that Valle herself
attempted to assault Rand Paul before the fracas, Paul has surged ahead of
his opponent in the latest poll, which shows the Kentucky candidate leading
the race by nine points
Drudgereport: BUCHANAN: The country is up for grabs... ‘…Consider the critical

issue facing America today – the budget and trade deficits, the soaring national
debt, an unemployment near 10 percent for 14 straight months – and how neither
party seems to have the cure. While George Bush's tax cuts did not cause this,
they did not prevent it. And if Republicans believe that his deficits did cause it,
why have those Republicans not addressed the causes of those deficits – Bush's
(and wobama’s) wars, Bush's tax cuts and Bush's social spending on No Child
Left Behind and Medicare drug benefits? Yet, if liberal Democrats are right and
deficits are the correct Keynesian cure for recession, why have Obama deficits of
$1.4 and $1.3 trillion failed so dismally? … The Federal Reserve, having used and
broken every tool in its toolbox, including doubling the money supply and setting
interest rates at near zero, will now bet the farm on inflation, starting Nov. 3. Both
parties have lost the mandate of heaven, and neither knows if its economic
philosophy even works anymore. We are in uncharted waters. The country is up
for grabs.’
ROUBINI: A PRESIDENCY HEADED FOR A FISCAL TRAINWRECK...
Europe 'dismayed' as midterms highlight Obama's struggles...
POLL: 65% Would Vote to Replace Entire Congress...
POLL: Majority Wants Obama Fired In 2012...
Democrat predicts GOP takeover in the House...
Candidates use children to make final pitch...
Politicians use PIs to unearth their own skeletons...
JET INK BOMB ALERT...
SINISTER PACKAGES ON CARGO PLANES...
Al Qaeda suspected...
'Syringe, powder and cell phone components'...
BIG SIS: Expect Extensive Pat-Downs To Become The Norm...
MILBANK: Obama is the last laugh... (Washington Post) [ Quite right! Wobama’s so
pathetic … I believe most would find even wobama’s post-office perks objectionable … he was
given the benefit of every doubt and support following what has to be considered the easiest act
in the world to follow (dumbya bush) and has failed miserably, marking the beginning of a long
overdue reality check and national blackout in america. ] Milbank ’On Comedy Central, the
joke was on President Obama Wednesday night. The president had come, on the
eve of what will almost certainly be the loss of his governing majority, to plead
his case before Jon Stewart, gatekeeper of the disillusioned left. But instead of
displaying the sizzle that won him an army of youthful supporters two years ago,
Obama had a Brownie moment. The Daily Show host was giving Obama a tough
time about hiring the conventional and Clintonian Larry Summers as his top
economic advisor. "In fairness," the president replied defensively, "Larry
Summers did a heckuva job." "You don't want to use that phrase, dude," Stewart
recommended with a laugh. Dude. The indignity of a comedy show host calling
the commander in chief "dude" pretty well captured the moment for Obama. He
was making this first-ever appearance by a president on the Daily Show as part of
a long-shot effort to rekindle the spirit of '08. In the Daily Show, Obama had a
friendly host and an even friendlier crowd…’
Vietnam jails bloggers, sentences activists (Washington Post) [ What is it about

the allure of ‘everyone’s equal b*** s***’ inherent to pure, unadulterated
totalitarian communism. Always the same story and quite a pathetic one at that.
(Previous, infra.) As for cuban rhetoric, I don’t take anything they say seriously (I
remind people that if you said something anti-government in cuba, you’d be dead
or in jail), although I’m not hesitant to include a good point if made (ie., castro
recently talking about nuclear holocaust risk, etc.). Disclaimer: I have been and
continue to be opposed to an end to a trade embargo on cuba; not because of
their communist system (I’m staunchly opposed to communism – ‘everybody’s
equal except some bureaucrats are more equal than others’, etc.), but solely
because of their grant of asylum to a black panther member who murdered a
state trooper. ] In the run-up to a visit by Secretary of State Hillary Rodham
Clinton, the actions have threatened the significant progress between the U.S.
and Vietnam in recent months. Black Panther case reveals schism (Washington
Post) [ I mean, really … You’d think a black president and black ag would have
more sense … Drudgereport: WASHPOST: Black Panthers case taps deep racial
divisions at Justice... Previous: UPDATE: MORE CLAIMS OF RACE BIAS AT
JUSTICE... CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN BLACK
PANTHER CASE... ex-Justice official quit over the handling of a voter intimidation
case against the New Black Panther Party accused his former employer of
instructing attorneys in the civil rights division to ignore cases that involve black
defendants and white victims US v. AZ... Cases against Wall Street lag despite
Holder’s vows to target financial fraud Obama broke promises ) Disclaimer: I
have been and continue to be opposed to an end to a trade embargo on cuba; not
because of their communist system (I’m staunchly opposed to communism –
‘everybody’s equal except some bureaucrats are more equal than others’, etc.),
but solely because of their grant of asylum to a black panther member who
murdered a state trooper: ‘Assata Shakur - Wikipedia, the free encyclopedia
Assata Olugbala Shakur (born July 16, 1947[1] as JoAnne Deborah Byron, married
name Chesimard[2]) is an African-American activist and escaped convict who was
a member of the Black Panther Party (BPP) and Black Liberation Army (BLA).
Between 1971 and 1973, Shakur was accused of several crimes, of which she
would never be charged, and made the subject of a multi-state manhunt.[3][4] In
May 1973, Shakur was involved in a shootout on the New Jersey Turnpike, during
which New Jersey State Trooper Werner Foerster and BLA member Zayd Malik
Shakur were killed and Shakur and Trooper James Harper were wounded.[5]
Between 1973 and 1977, Shakur was indicted in relation to six other alleged
criminal incidents—charged with murder, attempted murder, armed robbery, bank
robbery, and kidnapping—resulting in three acquittals and three dismissals. In
1977, she was convicted of the first-degree murder of Foerster and of seven other
felonies related to the shootout.[6] Shakur was then incarcerated in several
prisons, where her treatment drew criticism from some human rights groups. She
escaped from prison in 1979 and has been living in Cuba in political asylum since
1984.’ - The black panthers are not a bunch of ‘warm and fuzzy’ people. As for
cuban rhetoric, I don’t take anything they say seriously (I remind people that if
you said something anti-government in cuba, you’d be dead or in jail), although
I’m not hesitant to include a good point if made (ie., castro recently talking about
nuclear holocaust risk, etc.). Suit over voter intimidation -- reported by poll-
watcher Chris Hill, above -- roils Justice Dept.
In the Loop: Obama mentor Laurence Tribe unfiltered - and on paper (Washington
Post) [ Let’s give him an S (for stupidity) for Courage in admitting to being
connected to or a mentor of such a smashingly bad and failed president as
wobama. I actually had to read a book by Tribe in law school and though my
initial thoughts of the irrelevance of constitutional law to the actual practice
of law as later confirmed in practice ( I worked full-time at a law firm during
the day and attended law school in a 4 year program evenings – due
process, rules of law, obstruction of justice, etc., mean almost absolutely
nothing to these corrupt political hacks in deciding most cases as became
chrystal clear in my own practice [
http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyof
perjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ] , etc.
) , I was surprised that though irrelevant and taught by a pretty tough
professor, by the second semester it had become interesting to me if only
from a behavioral / historical perspective. An example was that seminal case
best known for establishing judicial review criteria (among the branches of
government, if my memory of this trivial point serves me) which was
shrewdly decided by John Marshall. Indeed, he well knew that the executive
branch would ignore his decision if adverse, so fashioned a rationale that
comported with a favorable decision for the executive / legislative
branch(es?) (I wouldn’t even waste my time to check this distinction though
simple enough to google). The point is that today, a similar but far more self-
interested dynamic is at work, ie., money, bribes, cover-up, more money,
etc., and justice is the last thought / thing served by the now pervasively
corrupt american judicial system. Moreover, that initial marshallian
impotence has evolved to the point of equipping these pathetic figureheads
with knee pads as an alternative to the monotony of constantly bending
over.
Title insurers drop demands on lenders in foreclosure cases (Washington Post) [

Somewhat meaningless since, while nice to have from their perspective,
their demands were somewhat redundant and unnecessary inasmuch as any
litigation would include crossclaims for indemnity and / or third-party
pleading (impleader) as a matter of standard practice / procedure. ] Mortgage
servicers push back attempt to make them explicitly responsible for title
problems resulting from handling of foreclosure paperwork.
Warren: Technology is key to new consumer bureau (Washington Post) [ No it is

NOT! Talk is much too cheap and plentiful in america and certainly no
deterrent to the massive frauds effected by these criminally insane lunatics
on wall street along with accomplices (ie., all three branches of the u.s.
government, fed, etc.) of a magnitude unprecedented in scope and size
(shootin’ for that too big a fraud / scam to fail or be prosecuted … absolutely
preposterous!) The key from attorneys general, federal and state, to the SEC,
to individuals (RICO, etc.) are actions / prosecutions both criminal and civil (
widely reported, high-frequency trading routinely accounts for more than
50% of daily U.S. equity trading volume and regularly approaches 70%. )’.
This national decline, economic and otherwise, will not end until justice is
served and the wall street frauds et als are criminally prosecuted, jailed,
fined, and disgorgement imposed. ] Elizabeth Warren wants Consumer
Financial Protection Bureau to be a nimble, sophisticated watchdog.
Drudgereport: MILBANK: Obama is the last laugh... (Washington Post) [ Quite

right! Wobama’s so pathetic and a total joke … I believe most would find
even wobama’s post-office perks objectionable … he was given the benefit
of every doubt and support following what has to be considered the easiest
act in the world to follow (dumbya bush) and has failed miserably, marking
the beginning of a long overdue reality check and national blackout (‘you
know, the energy thing’) in america. ] Milbank ’On Comedy Central, the joke
was on President Obama Wednesday night. The president had come, on the
eve of what will almost certainly be the loss of his governing majority, to
plead his case before Jon Stewart, gatekeeper of the disillusioned left. But
instead of displaying the sizzle that won him an army of youthful supporters
two years ago, Obama had a Brownie moment. The Daily Show host was
giving Obama a tough time about hiring the conventional and Clintonian
Larry Summers as his top economic advisor. "In fairness," the president
replied defensively, "Larry Summers did a heckuva job." "You don't want to
use that phrase, dude," Stewart recommended with a laugh. Dude. The
indignity of a comedy show host calling the commander in chief "dude"
pretty well captured the moment for Obama. He was making this first-ever
appearance by a president on the Daily Show as part of a long-shot effort to
rekindle the spirit of '08. In the Daily Show, Obama had a friendly host and
an even friendlier crowd…’
BUCHANAN: The country is up for grabs... ‘…Consider the critical issue
facing America today – the budget and trade deficits, the soaring national
debt, an unemployment near 10 percent for 14 straight months – and how
neither party seems to have the cure. While George Bush's tax cuts did not
cause this, they did not prevent it. And if Republicans believe that his
deficits did cause it, why have those Republicans not addressed the causes
of those deficits – Bush's (and wobama’s) wars, Bush's tax cuts and Bush's
social spending on No Child Left Behind and Medicare drug benefits? Yet, if
liberal Democrats are right and deficits are the correct Keynesian cure for
recession, why have Obama deficits of $1.4 and $1.3 trillion failed so
dismally? … The Federal Reserve, having used and broken every tool in its
toolbox, including doubling the money supply and setting interest rates at
near zero, will now bet the farm on inflation, starting Nov. 3. Both parties
have lost the mandate of heaven, and neither knows if its economic
philosophy even works anymore. We are in uncharted waters. The country is
up for grabs.’
Govt. "Diverging from Reality", U.S. "At Risk of Downward Spiral," Sachs Warns
Sachs ‘Life, liberty and the pursuit of happiness are under assault in this country
as our political system has basically taken the American people hostage. That
was a key tenet of an impassioned speech by Professor Jeffrey Sachs’s at The
Economist’s Buttonwood Gathering earlier this week.“The U.S. is at risk of a
downward spiral because we are diverging from reality," Sachs says, citing a
"profound failure on many fronts." Sachs, who is director of The Earth Institute
and author of several books, gave a laundry list of problems plaguing America
that are being ignored: a crumbling infrastructure, severe poverty, debilitating
budget deficits, failing education, climate change, energy policy…the list goes
on. Despite these huge, structural challenges, America is obsessed with the
short-term...and the next election, Sachs laments. “We are not looking at anything
aside from who’s up, who’s down for November and we are only looking from that
moment on [to] who is going to be up for 2012.”As a result of the two-year
political cycle, Sachs argues that we’ve become way too shortsighted in our
policymaking, or lack thereof. “Strangely missing,” he says, are "government
program and plans set before the American people. What we have is relentless
backroom negotiations with interest groups.”The American people have
essentially been forgotten as politicians continuously vie for the support of
special interest groups. “It is staggering the vested interested and the large
money pouring into the campaign,” he says.Recalling Rahm Emanuel's famous
quip that a “crisis is a terrible thing to waste,” Sachs says leadership in
Washington is key to getting us back on track. He feels the financial crisis could
have been used to fix many of our long-term problems (see list above) but
President Obama and his party fumbled the opportunity. Still, Sachs has no great
faith in the GOP either…’
Street Sags As Earnings Outweigh Drop In Jobless Claims [ Come on! Days
before the elections … do you really think those much better than expected
unemployment claims numbers were real? ]
Bullish Sentiment Near 2-1/2 Year High [ As it was just before the last crash! ]
‘WASHINGTON (AP) -- The new Congress that begins in January will confront an
economy and a job market that will improve only slightly next year,
according to an Associated Press survey of leading economists that found
them gloomier than they were three months ago…’ [ Still way too optimistic!
They’re all still dreamin’. ]
and privacy)].

This is an especially great opportunity to sell / take profits! Suckers’ rally into the
close to keep suckers suckered (easy for the wall street frauds to do with
just a mouse click / push of the button). Keep in mind, the totally mindless
blather from the ‘cottage industries’ of and fraudulent wall street itself in
talking up lower P/E multiples when the same is a direct result of the
debasement of the dollar and the consequent manipulation / translation (not
real, see Davis, infra) which preceded the financial crisis / last crash.
Unemployment, trade, deficit, etc., numbers continue decidedly worse than
expected along with other negative data (and in the ‘wrong direction’, that
spin accorded ‘down but not as bad as before’ b*** s*** ) yet the market has
corrupt! ] Wall St advances on dollar weakness, Fed bets (Reuters) – [ Look
Ready to Roll Over? These Signs Say Yes.
Dollar Crushed On QE2 Expectations The dollar weakened and Treasuries halted
a six-day slide as the Federal Reserve sought input from bond dealers about
the size of asset purchases, bolstering speculation policy makers remain
open to a large round of quantitative easing. U.S. stocks declined.
McGrath: ‘Austerity Will Hit America Like An Eight Pound Sledgehammer’ Charlie
McGrath of Wide Awake News warns that things are going to change after
the election – for the worse. While the movement across America to stop an
out of control Congress in its tracks will likely lead to Republican victories
and control of at least the House, the idea that this will somehow change the
economic outlook for the better is conjecture.
Why Did Banks Give Home Loans to People Who They KNEW Couldn’t Pay?
William K. Black – professor of economics and law, and the senior regulator
during the S & L crisis – explained last month before to the Financial Crisis
Inquiry Commission why banks gave home loans to people who they knew
couldn’t repay.
Fed Strategy The Wrong Way For Growth As the Friday Night Financial Follies
continues regulators on Friday shut down two small banks in Florida and
two in Georgia, lifting to 136 the number of U.S. banks that have fallen this
year as soured loans have mounted and the economy has sputtered.
Is hard currency on its way out? Introducing the new virtual world currency.
Christian Science Monitor | The new virtual world currency is an index of the
world’s 15 largest economies, weighted by their gross domestic product,
adjusted for purchasing power parity.
Fed-Induced Rally Makes Riskiest Debt Priciest: Credit Markets Bloomberg | The
lowest-rated junk bonds are the most expensive corporate debt following a
Federal Reserve- induced rally in high-risk assets, adding to concern fixed-
income securities are overvalued.
American Job Loss Is Permanent Now that a few Democrats and the remnants of
the AFL-CIO are waking up to the destructive impact of jobs offshoring on
the US economy and millions of American lives, globalism’s advocates have
resurrected Dartmouth economist Matthew Slaughter’s discredited finding of
several years ago that jobs offshoring by US corporations increases
employment and wages in the US.
JPMorgan, HSBC Accused of Manipulating Silver Futures HSBC Holdings Plc and
JPMorgan Chase & Co. were accused in an investor’s lawsuit of placing “spoof”
trading orders to manipulate silver futures and options prices in violation of U.S.
antitrust law.
National / World
WeAreChange Assaulted by Daily Show Staff WeAreChange NY | With that in

mind many people may scratch their heads wondering why comedic talk
show host Jon Stewart would be the recipient of serious questions
regarding his stance on the events of September 11, 2001.
Former Hitler Youth Whistleblower Warns Of America’s Nazi Future Paul Joseph
Watson | Von Campe warns Obama administration more closely resembles
Nazi Party than founding fathers.
Jack Conway Takes Money from Criminal Drug Company Kurt Nimmo | Reporter
reveals Jack Conway accepted money from company that pushes
OxyContin.
American Job Loss Is Permanent Paul Craig Roberts | The correct conclusion is
that the U.S. trade deficit with China is the result of “globalism” or jobs
offshoring, not Chinese currency manipulation.
New Video Shows MoveOn Activist Attempted To Assault Rand Paul Paul Joseph
Watson | Valle shoved sign in Paul’s face before stomping incident in
footage media refused to broadcast.
Obama visits India’s IT sector as U.S. jobs continue shrinking Reuters | An

increase in U.S. visa fees, a ban on offshoring by the state of Ohio and the
industry’s portrayal in campaign ads as a drain of U.S. jobs has set a frosty
tone ahead of Obama’s visit to India in early November.
Military wants to scan communications to find internal threats The Pentagon
wants computers to see into the future — and stop crimes before they
happen.
Bush Thought Flight 93 Had Been Shot Down On 9/11 “The president reveals he
gave the order to shoot down planes on September 11 — and at first thought
the plane in PA had been shot down,” reports Matt Drudge in an exclusive
story about George W. Bush’s upcoming book Decision Points, set to be
released on November 9.
Jack Conway Takes Money from Criminal Drug Company The more you look at
Jack Conway, the worse it gets. Yesterday we reported on Conway’s effort to
obstruct justice in a criminal drug investigation of his brother. Today we
report that Jack Conway accepts money from a company that pushes a
dangerous drug, OxyContin.
Drudgereport: BUCHANAN: The country is up for grabs... ‘…Consider the critical

issue facing America today – the budget and trade deficits, the soaring national
debt, an unemployment near 10 percent for 14 straight months – and how neither
party seems to have the cure. While George Bush's tax cuts did not cause this,
they did not prevent it. And if Republicans believe that his deficits did cause it,
why have those Republicans not addressed the causes of those deficits – Bush's
(and wobama’s) wars, Bush's tax cuts and Bush's social spending on No Child
Left Behind and Medicare drug benefits? Yet, if liberal Democrats are right and
deficits are the correct Keynesian cure for recession, why have Obama deficits of
$1.4 and $1.3 trillion failed so dismally? … The Federal Reserve, having used and
broken every tool in its toolbox, including doubling the money supply and setting
interest rates at near zero, will now bet the farm on inflation, starting Nov. 3. Both
parties have lost the mandate of heaven, and neither knows if its economic
philosophy even works anymore. We are in uncharted waters. The country is up
for grabs.’
MILBANK: Obama is the last laugh... (Washington Post) [ Quite right! Wobama’s
so pathetic and a total joke … I believe most would find even wobama’s post-
office perks objectionable … he was given the benefit of every doubt and support
following what has to be considered the easiest act in the world to follow
(dumbya bush) and has failed miserably, marking the beginning of a long overdue
reality check and national blackout (‘you know, the energy thing’) in america. ]
Milbank ’On Comedy Central, the joke was on President Obama Wednesday night.
The president had come, on the eve of what will almost certainly be the loss of
his governing majority, to plead his case before Jon Stewart, gatekeeper of the
disillusioned left. But instead of displaying the sizzle that won him an army of
youthful supporters two years ago, Obama had a Brownie moment. The Daily
Show host was giving Obama a tough time about hiring the conventional and
Clintonian Larry Summers as his top economic advisor. "In fairness," the
president replied defensively, "Larry Summers did a heckuva job." "You don't
want to use that phrase, dude," Stewart recommended with a laugh. Dude. The
indignity of a comedy show host calling the commander in chief "dude" pretty
well captured the moment for Obama. He was making this first-ever appearance
by a president on the Daily Show as part of a long-shot effort to rekindle the spirit
of '08. In the Daily Show, Obama had a friendly host and an even friendlier
crowd…’
Comment on: U.S. military campaign to topple resilient Taliban hasn't succeeded
at 10/28/2010 5:35 AM EDT
Afghanistan: U.S. military campaign to topple Taliban hasn't succeeded
(Washington Post) [ The really tragic thing about all the death and destruction
inflicted by america for no good reason is that one with even a modicum of sense
of military strategy / history could have easily (as here warned on this site)
predicted this failed outcome; and then, there’s america’s defacto bankruptcy,
their greed for their resurgent heroin trade dollars which the Taliban had all but
eradicated, and that in this as in most instances, america’s clearly the bad guy. ]
Comment on: E.U. rules let Iran import, export oil, creating possible split from
U.S. policy at 10/28/2010 5:23 AM EDT
New E.U. rules let Iran import, export oil, gas (Washington Post) [ Probably too
little, too late to save the eu from pervasively corrupt, defacto bankrupt american
insanity, from mark to anything valuations, Weimar dollar type currencies,
perpetual wars, etc., yet this is at least a step in the right direction for the eu.] The
United States and Europe have worked cooperatively on Iran policy since
President Obama took office, but a small crack might have begun to open over
sanctions that are beginning to pinch ordinary Iranians. Iran connects U.S./israel
to deadly blasts I believe Iran! ‘West, israel linked to SE Iran blasts’ A ranking
official with the Islamic Revolution Guards Corps (IRGC) has implicated “the us,
israel and some european countries” in the deadly blasts in the southeastern
Iranian city of Zahedan.
Comment on: Federal bailout oversight panel raises alarms over foreclosure
crisis at 10/28/2010 5:15 AM EDT
Bailout panel raises alarms (Washington Post) [ Whew! Just in the nick of time …
really dodged a bullet … NOT! …They’re as late as they’ve been complicit in every
problem this nation has, particularly with their cozy relationship with the frauds
on wall street (still unprosecuted) who’ve benefited mightily from these
continuing scams / frauds at everyone’s expense. ] Repercussions of the
foreclosure crisis worry lawmakers.
Comment on: Wells Fargo acknowledges problems in foreclosure paperwork at

10/28/2010 5:11 AM EDT
Bank finds paperwork flaws (Washington Post) [The obviousness of this headline
brings to mind such rhetorical queries as ‘do bears s*** in the woods’ and ‘is the
Pope Catholic’, etc.. This is pervasively corrupt, defacto bankrupt america; home
of the frauds, fleeced, and f*** ups! ] Lender has stood by its foreclosure
paperwork for weeks as other banks discovered errors and halted sales.
Comment on: Most Americans worry about ability to pay mortgage or rent, poll
finds at 10/28/2010 5:06 AM EDT
Are you like most Americans? (Washington Post) [ Oh come on! If mortgage
payments were all americans had to worry about in this fraud-rampant,
pervasively corrupt (all 3 branches of u.s. government), defacto bankrupt nation
they’d have reason to jump for joy. ] A new Washington Post poll reveals that
most Americans worry about making mortgage payments.
Bear Market Update: Environment Ripe for Some Damage Cadora ‘Since the last
bear market update 10 days ago, stocks have broken and recovered their
rally trend line, the dollar has begun its anticipated bounce, and the bond
market continues to display ominous behavior. As Members know, the trend
line break confirmed a decline into a daily cycle low while the recovery to
new highs indicates the beginning of a new cycle. (chart) The problem (for
bulls) with such a brief dip is that there was not enough price damage done
to work off bullish sentiment, which according to sentimentrader.com,
remains pegged near a sell-signal level. In fact, smart money confidence
rests at a level that is outright bearish. Therefore, this current pop in equities
likely won't have much juice to it. If stocks then roll over and penetrate the
recent cycle low, as indicated by the blue, horizontal line above, we would
be facing a failed cycle and the potential for 4-6 weeks of generally lower
stock prices. I dare say few traders are anticipating more than a corrective
decline at this point. Given sentiment levels, if a little fear were injected into
this market, folks might be surprised how quickly we get back to SPX 1040.
Sentiment in the dollar also supports such a move, as bearishness has been
running rampant. Public opinion over the dollar is quite negative, and talking
heads are still trying to guess how low the dollar can go. A bit more of a
bounce should form from here to work off enough bearishness to set the
buck up for the plunge into next year's major cycle low. (chart) The dollar's
bounce certainly has the potential to knock stocks below SPX 1160. The
question then becomes whether equities can continue to decline when the
buck rolls over. There is certainly no guarantee they won't: (chart) Of course,
the 2007-08 decline coincided with a burgeoning financial crisis, so some
sort of event to generate fear over economic prospects would certainly add
weight to the bearish outlook. Perhaps the Democrats will have a better
showing at the polls than expected or perhaps a large bank will suddenly
expire. I don't know. But the environment is certainly ripe for some price
damage. Another ominous development has just taken hold of the bond
market: (chart) The Treasury market may finally be set to enforce a bit of
discipline on the FOMC for its malfeasances. Despite promises by the Fed to
purchase trillions of dollars of Treasuries with more counterfeit money,
bonds are heading lower. This action could certainly be a symptom of next
year's anticipated crisis in the dollar, but one thing is for sure: Higher
interest rates will not be good for stocks. Disclosure: None
Bulls Get Edgy: Dave's Daily ‘The dollar rallies, gold and commodities fall, stocks
get wobbly, bonds get sold and frankly, investors just lose their nerve. Despite
the obligatory end-of-day "stick save" today, perhaps investors wish to square-up
before the election on Tuesday and the Fed decision Wednesday. Earnings from
companies like DuPont continue to beat estimates while Durable Goods Orders,
ex-airplanes and military, was weak. This means corporate investment in new
stuff remains weak as well. But, hey, doesn't this more good news for those want
a strenuous QE effort? Oh, the mystery of it all! PIMCO's Bill Gross stated to
clients that the Fed was running a Ponzi Scheme which he dubs a "Sammy
Scheme". Also highly regarded market veteran Jeremy Grantham lambasted what
the Fed was doing as "The Night of the Living Dead". Then we have the 25th
straight week of equity mutual fund outflows combined with another round of
POMO tomorrow which might take up the slack. In the meantime, you may tune in
to our video podcast with Dan Dolan, Director of Wealth Management Strategies
for the Select Sector SPDR Trust. We discuss the many sector ETFs, the indexes
they're linked to, and most importantly, where the positive or negative money-
flow is whether from technology to financials. Volume increased in good two-way
action today but breadth wound up the day negative…’
Hoping the Fed Will 'Disappoint' the Market and Say No to QE2 Goodman ‘Many
people now believe that the Federal Reserve is composed of a group of persons
who do the bidding of companies like Goldman Sachs (GS). Jan Hatzius, chief
economist of Goldman Sachs, is spearheading the effort to insure heavy dollar
debasement, claiming that the issuance of $4 trillion new counterfeit dollars will
help the real economy. Reading Hatzius' justifications is like reading the ravings
of a lunatic. If Hatzius were an imbecile, I would accept that. But, he is surely not.
He is, instead, the living mouthpiece for a group of executives at Goldman Sachs,
who are not satisfied with the amount of cash they have already managed to
extract from the American public. They want yet more free counterfeit cash from
the Fed to play with. It is not the first time this has happened. Firms similar to
Goldman Sachs were also pressuring the Reichsbank of Weimar Germany from
1919-23 to engage in more and more quantitative easing. At that time, the German
central bank obliged and the famous Weimar hyperinflation episode that scarred
Germany for generations was the result.It is said that the Federal Open Market
Committee (FOMC), which sets interest rates and orders official counterfeiting
from time to time, will never disappoint the “market”. The term “market” seems to
be defined as the big investment banks on Wall Street. Jan Hatzius has a lot of
wants and desires that mirror the goal of his firm to make as much profit as
possible in their role as speculators and brokers who service speculators. He and
fellow Goldman Sachs’ alumnus, William Dudley, President of the New York Fed,
claim that counterfeit dollars (QE-2) will help lower the unemployment rate. Yet,
the first round of quantitative easing did absolutely nothing to lower the
unemployment rate. QE-1 mostly juiced the stock and commodity markets with an
unhealthy dose of speculative feel-good fever. It caused the price of many
commodities to skyrocket. Higher commodity prices, fed by "counterfeit" QE
cash, has put a great strain on the real economy. They have enriched many of our
nation’s enemies in the Middle East, Venezuela and elsewhere. The reflation of
commodity prices, especially at the supermarket and at the gas pump, is very
unhealthy for American consumers who are strapped to begin with. Yet, in spite
of this, the primary dealers tell us that the Fed must do more. QE-1 was
essentially a huge stealth tax imposed by the Fed to save the big banks. Now, QE-
2 will essentially be another huge stealth tax designed to make big banks richer,
at the expense of the rest of society. Of course, the Fed is not supposed to have
taxation power. Our Constitution reserved this for Congress. Indeed, taxation
without representation was the rallying cry of the American Revolution. With the
Fed and quantitative easing, however, we have reached the ultimate in taxation
without representation. Americans must pay the tax, on food, fuel and other
things, and no one in Congress can do anything about it. The tax has been
imposed by the Fed, an organization controlled by the same banks that will
benefit from taking this money from the American people.QE-1 was most effective
in saving big banks from what appeared to be their inevitable demise in March
2007. The weak foundations of their income and assets caused many banks to be
unwilling to lend money to other banks. Some of the biggest financial institutions
in the world were unable to convert many of their assets, then thought to be
worthless, into cash. Quantitative easing created a market for agency and
mortgage backed bonds, for example, at a time that the private market wanted no
part of them. It put cash in the pockets of the banks and bonuses in the hands of
their bank executives. QE-1 was announced and carried out starting in March,
2009, a time of unusual dollar demand from foreign banks faced with billions in
defaulting dollar denominated assets. The dollar had reached its highest level in
years, and that fact helped the Fed get away with it. Dollar demand has drastically
dropped since then, and the currency is floundering near its historic lows right
now. The Fed won't get away with QE-2 without America paying heavy
consequences.Some countries, like Brazil, are already erecting protective tariff
barriers in order to exclude unwanted dollar denominated investment. Given this
backdrop, during a time of unprecedented dollar weakness, we believe that QE-2
will eventually lead to a runaway selloff of the U.S. dollar in the real market, as
opposed to merely in the leveraged currency markets. That would be devastating
both to the American economy and that of the world.The world would have been
better without QE-1. Insolvent banks should have been allowed to fail. That would
have allowed us to nationalize them, fire all the incompetent executives, and sell
off the pieces to more prudent management, leaving no golden parachutes and
no rewards for failure. However, there was an argument, at that time, that doing
this would send the world into a deep depression. It was a weak argument and I
vehemently disagreed at the time. However, a lot of people believed it and it was
used to justify the biggest counterfeiting and money debasement episode in
history.No such financial crisis exists today, and no such justifications can be
relied on. Bank profits are now quite high. Profits in the rest of corporate America
are also high. Corporate cash hoards are also high. Corporations will only be
inclined to spend that cash in America (as opposed to converting it into foreign
currencies and/or gold), or engage in speculation like the banks, if they have
confidence in the U.S. economy. Engaging in another round of quantitative
easing decreases confidence.Some diseases weaken the host, but they allow the
host to live. Others weaken and then kill the host. Guys like Jan Hatzius and
William Dudley, as well as all the others who are pushing QE-2, are suffering from
the second type of disease. They will not be satisfied with anything less than
sucking all the life's blood from the nation’s economy, even if it means that the
entire economy dies. They are willing and ready to destroy confidence in the U.S.
dollar and the U.S. economy through more quantitative easing, at a time when no
arguable justification for it exists. Once confidence is destroyed, it will be difficult
or impossible to regain. Meanwhile, virtually all the primary dealers of the Federal
Reserve are expressing certainty that the Fed will begin another round of official
counterfeiting on November 3, 2010. Bank of America/Merrill Lynch (BAC) says
$500 billion at the next meeting with a total of $1 trillion. Deutsche Bank (DB) says
$125 billion and then $50-100 billion for 6 months for a total of $500 billion. The
Wall Street Journal has announced that the FOMC is poised to announce the
printing of several hundred billion at its next meeting, without saying where it got
that information. (See here.)It is troubling, to say the least, that private companies
like Goldman Sachs, Merrill Lynch, Deutsche Bank and media outlets, like the
Wall Street Journal, often seem to know what the Fed will do, before it does it.
Where are they getting this information? Reuters recently exposed corruption at
the Federal Reserve in the form of selective leaks of inside information to favored
persons in private industry. (See here.) A special prosecutor's office should be
established to investigate and determine the source of the inside information. The
S&P office should aggressively prosecute all persons at the Fed who are
identified as sources, no matter how high they may rank in the hierarchy, as well
as those who received the information. In any case, this type of foreknowledge
activity illustrates a high level of corruption at the Federal Reserve and why the
organization has lost most of its credibility.For once in its lengthy existence, the
FOMC should say “no” to the primary dealers. But, perhaps, that is impossible.
Those who say that the FOMC, with one or two exceptions, is composed of
financial whores and owned by various executives at the primary dealers, might
be right. However, if they are wrong, given the circumstances, the FOMC will
disappoint the "market" by announcing no further quantitative easing at this time.
Disclosure: No positions in any company mentioned’
and privacy)].
Mike Shedlock on the Economy, Deflation and Where to Invest This Year [ I
personally believe mish to be a lightweight, but correct in some respects albeit after the
fact while providing a lot of historical data (which is interesting) … ie., he totally misses
the computerized high-frequency programmed fraud (and consequent effects), the
basic economic equation, the debasement of dollar / lower price earnings multiple
dynamic / fraud, etc., and though bearish, is afraid to say it; ie., ‘It is far easier to make
up for lost opportunities than lost cash’. Tell us something we don’t know mish.’ ]
Martenson ‘… The Case Against the Fed What Has Government Done to Our
Money?… Mish: I am a firm believer in peak oil. I don't know how anyone can deny it.
Given peak oil, and given the demand from China for oil and other commodities, the
world is on a crash course of demand that cannot be filled. China is growing at 8-10% a
year (assuming you believe the stats). Can China keep growing at that rate forever? For
even 10 more years? What about India? Brazil? …Fed will print and print and print. Let's
look at a few examples. Zimbabwe Hyperinflation In the case of Zimbabwe, a loss of
faith in currency occurred before the printing occurred. The Weimar Republic is a
different story. In Zimbabwe, the Mugabe government initiated a "land reform" program
intended to correct the inequitable land distribution created by colonial rule. Ultimately,
Mugabe's attempt to bail out the poor at the expense of the wealthy is what triggered
capital flight and loss of faith of the currency. His reforms not only caused a flight of
capital and human capital (the wealthy), they also led to sanctions by the US and
Europe. In response, Mugabe turned on the printing presses but the loss of faith in the
currency had already occurred. Weimar Hyperinflation In Weimar Germany, printing
for war reparations kicked off hyperinflation. War reparations were a political event. So
was the invasion of Germany to enforce payment of those reparations. Argentina
Hyperinflation Argentina based its currency on the US dollar, a political mistake. When
Argentina could no longer hold the peg, its currency collapsed. Hyperinflation is a
Political Event The commonality between Zimbabwe, Weimar, and Argentina is they
are both political events. In Zimbabwe a political event triggered capital flight, in Weimar
a political event started massive printing, and in Argentina everything collapsed when a
foolish peg could not be sustained. In each case, a collapse of faith in currency
(hyperinflation) led governments to massive printing campaigns, not the other way
around. …’
Stocks Fall On Worries Over Fed's Strategy
Bill Gross Calls Fed “Most Brazen” Of All Ponzi Schemes, Says 30 Year Bond
Market Is Ending, Compares US Economy To Black Hole They say a country
gets the politicians it deserves or perhaps it deserves the politicians it gets.
Whatever the order, America is next in line, and as we go to the polls in a
few short days it’s incumbent upon a sleepy and befuddled electorate to at
least ask ourselves, “What’s going on here?” Democrat or Republican,
Elephant or Donkey, nothing much ever seems to change.
Ford Motor Company Is Making Record Profits – By Shipping Our Jobs Overseas
On Tuesday, Ford Motor Company reported a record breaking profit for the
third quarter. Ford earned 1.7 billion dollars during the quarter, which was
way up from a profit of $997 million a year ago during the same time period.
Commodity Futures Trading Commission: Silver Market is Manipulated Bart

Chilton, a commissioner at the Commodity Futures Trading Commission …
said he thinks “the public deserves some answers to their concerns that
silver markets are being, and have been, manipulated.”
Gas prices rise, breaking pre-election pattern Gasoline prices haven’t gotten
much attention amid all the other bad economic news for Democrats
heading into a final week of campaigning, but the price per gallon has
climbed nearly 15 cents since Labor Day – a surprising jump, given that
prices usually plummet before an election.
Cato: Bernanke Is Not Printing Enough Money Economic Policy Journal | A

commentary on monetary policy that can only be described as coming out of
the playbook of Zimbabwe’s Robert Mugabe has been published on the
pages of the Cato Institute.
FDIC Head Sounds the Alarm on Foreclosure Litigation Reuters | Litigation arising
from foreclosure paperwork problems could be “very damaging” to the
housing market, a top U.S. banking regulator said Monday.
Dollar printing feeding China inflation: minister AFP | Rampant issuance of

dollars by the United States is saddling China with “imported inflation”,
Chinese commerce minister Chen Deming was quoted as saying.
China Retaliates Again, Accuses US Of “Out Of Control” Dollar Printing After

taking heat from the White House for nearly a year for its currency peg, a
fact that in itself will never get China to loosen its regime as it would be
perceived as yielding to pressure from D.C., China has once again gone on
the offensive, this time via its commerce minister who earlier today said that
dollar issuance in the U.S. is “out of control” which in turn is leading to an
inflation assault on China.
National / World
“Conway cover up” surges to #1 on Google Trends days before Kentucky Senate
vote Aaron Dykes | While the controlled media has been busy dirtying Rand
Paul’s name just days before the midterm elections, news of a real scandal
has gone viral and #1 on Google trends concerning his opponent Jack
Conway.
Conway Cover-Up: Media Ignores Admitted Obstruction Of Justice Paul Joseph

Watson & Kurt Nimmo | Jack Conway’s financial supporters dropped drug
trafficking case against Conway’s brother after Senatorial candidate had
tipped him off.
“9/11 Cover-up” #1 Search Term on Google Aaron Dykes | “9/11 cover-up” has
become the #1 search term on Google’s hot trends, following a special
appearance by former Gov. Jesse Ventura on the Alex Jones Show today.
New Footage Implodes 9/11 Cover-up Steve Watson | Amazing video also shows
city officials hurriedly leaving after South Tower collapse.
Special Free Live Video/Radio Simulcast with Jesse Ventura Infowars.com |

Former Minnesota Governor Jesse Ventura joins Alex Jones for a special
live video and radio simulcast today to discuss the latest bombshell
revelations surrounding the 9/11 cover-up.
“Conway Cover Up” Surges to #1 on Google Trends Days Before Kentucky

Senate Vote While the controlled media has been busy dirtying Rand Paul’s
name in the lead up to the midterm elections, news of a real scandal has
gone viral concerning his opponent Jack Conway in the Kentucky Senate
race.
Conway Cover-Up: Media Ignores Admitted Obstruction Of Justice While

hyperventilating over the Lauren Valle stomping incident, the corporate
media has ignored a far bigger scandal swirling around the Kentucky Senate
race – the fact that financial contributors to Jack Conway’s campaign and
Conway himself tipped off Conway’s brother to the fact that he was being
investigated for trafficking drugs in an admitted obstruction of justice.
“9/11 Cover-up” #1 Search Term on Google Discussion of a “9/11 cover-up” has

become the #1 search term on Google’s hot trends, following a prompt on
the Alex Jones Show today. And not without good reason. Former Governor
Jesse Ventura joined Alex in a special broadcast to unravel some of the
latest smoking guns released on video reluctantly by NIST following a
lawsuit.
EXCLUSIVE: Uncovered 9/11 Footage Shows FBI Director Asking Firefighters

About “Secondary Hits” On WTC An intriguing video has appeared on You
Tube that appears to show a FDNY film crew being interviewed in the
aftermath of the 9/11 attacks by the the director of the FBI’s New York office,
who has suspicions that one of the World Trade Center towers took a
“secondary hit” before collapsing.
Jack Conway Promoted Neo-Con Iraq War in 2002 Jack Conway promoted Bush’s
foreign policy without hesitation in 2002. He supported Barack Obama’s
foreign policy in 2008 without hesitation. Supporting both of those positions
left him looking like the hypocritical politician he is/was.
Conway Fails To Condemn Brutal Attack On Rand Paul Activist Two days after a
Jack Conway supporter viciously stomped on an injured female Rand Paul
activist and Conway has still failed to condemn the incident, while the
establishment media has almost universally failed to even report on it,
proving that their refusal to admit that there were two identical “stomping”
incidents on the same night is part of the national smear campaign against
Rand Paul.
MSNBC Morning Joe: ‘Jack Conway Is A Joke’ Today the race to fill Jim
Bunning’s shoes took center stage on MSNBC’s Morning Joe show, as the
pundits took notice of Rand Paul’s crushing defeat of Jack Conway in
Kentucky’s final U.S. Senate debate.
Drudgereport: CBSNEWSNYT: Parts of Obama Coalition Drift Toward GOP...

GALLUP SEES TIDAL WAVE
CHICAGOLAND: Officials scramble to send out vote-by-mail ballots...
Daytona Beach Commissioner Charged With Absentee Ballot Fraud...
Nevada Secretary Of State Says 'No Evidence' Of Fraud...
Residents cry foul over ballots in PA...
Republicans Plan Budget Cuts Early If They Take Power ...
REALCLEAR WRAP: SENATE HOUSE...
ABCNEWS NOTE MIKE ALLEN PLAYBOOK MSNBC FIRST READ WASH POST
FIX...
CHICAGO: 'Glitch' with vote-by-mail system; Hundreds of thousands of voters
may be disenfranchised...
UPDATE: Tensions flare offstage at KY debate; Dem supporter steps on foot of
woman wearing surgical boot...
ANTI-REPUBLICAN PROTESTER STOMPED...
Bill Clinton: 'It's What Happened To Me In 94'...
SHOCK POLL: OBAMA HITS 37 APPROVAL...
Dem candidates shun president...
Obama: My name's not on ballot, but my agenda is...
Fiorina Admitted to Hospital for Infection...
WH bristles over top Republicans remarks...
RUNDOWN...
REID 'FREE FOOD' AT TURNOUT EVENTS
UNIONS 'GIFT CARDS' FOR VOTES
SOROS: LEGALIZE THE WEED... [ … In his opinion piece, Soros said that the
nation’s marijuana laws "are clearly doing more harm than good" at a cost of
billions of dollars a year "to enforce this unenforceable prohibition."Soros wrote
that regulating and taxing marijuana would reduce the crime and violence linked
to criminal drug gangs and violations of civil liberties "that occur when large
numbers of otherwise law-abiding citizens are subject to arrest." He also noted
that minorities are arrested at higher rates for marijuana crimes, creating arrest
records that may follow them through life.Although he endorsed Proposition 19,
noting that it would allow recreational use and small-scale cultivation, Soros also
suggested "its deficiencies can be corrected on the basis of experience." Besides
allowing adults 21 and older to grow and possess marijuana, the initiative would
allow cities and counties to authorize commercial cultivation, sales and taxation
… ( My position is similar but for the reason to take the profit from the gangs, criminals, and to
tax it). ]
VEGAS: 'I WENT TO VOTE AND HARRY REID'S NAME WAS ALREADY
CHECKED'...
Voting Machine Techs Are SEIU...
N CAROLINA: I VOTED REPUBLICAN AND MACHINE CHECKED DEMOCRAT...
[ Let’s get real … declining / fallen america’s a banana republic (pervasively corrupt, defacto
bankrupt, gunboat diplomacy, etc.)]
Global extinction crisis looms, study says (Washington Post ) [ 90% of all species
that have ever existed are now extinct. On this dying planet, extinction is not the
exception but the rule! Approximately 3 extinctions per hour and humans are
posited as the causative irritant (Niles Eldredge) and humans will be no exception
(wars, etc.) ] One-fifth of all vertebrates and as many as a third of all sharks and
rays are now threatened.
Russia most corrupt among global powers, study says (Washington Post) [ I
would say that is a distinction without a significant difference and the direct
result of a less capable (than the u.s.) propaganda machine, more
transparency in the corruption itself (less effort to hide), and importantly,
they’re not globe-trotting wars, death, and destruction as america. ]
Mortgage scandal aids argument of securities investors (Washington Post) [ Yet

this boondoggle pales in comparison to the last bailout (on-going) where
worthless paper held by the wall street frauds, having been commissioned
and sold at premiums multiple times, now marked to anything as per
legislated FASB rule change, is swapped for hard currency (sub-rosa fed
pomo ops) at whose expense … guess! ] Reports of banks botching loan
paperwork have breathed new life into efforts by investors to force big
banks to buy back loans that went bad.
A new focus on government spending (Washington Post) [ Riiiiight! Sounds like a

plan! … and just in time for the election … then maybe they could say could
be that the nation will possibly be (but not really) slightly less defacto
bankrupt. Then there’s the ever larger military industrial complex welfare
program of perpetual war, wall street computerized high-frequency trade
scams / frauds which are apparently immune from prosecution, etc. ] It is not
clear whether GOP gains on Election Day would lead to a serious effort at
deficit reduction.
In U.S., BMW gets skilled workers for less (Washington Post) [ Well, in all candor,
I think the Germans are proceding on the presumption / truism that you get
what you pay for, or conversely the reality as is apposite here, you pay for
what you get. After all, based on my own experience with american workers
whether they be in courts, politics / government, phone companies, (Utah
workers excepted) etc., I personally and I believe most people would rather
have a German car built by a native german than an american worker. The
lower wage probably allows a cushion for recalls, strict liability lawsuits for
defects, etc.. ] Workers at a South Carolina BMW plant line up for $15 an
hour -- half of what German counterparts make.
week will probably be a ‘sell on the news’ week, the absence of that rumor / b***
s*** story, viz., the election results, being the precipitating factor [Come on ….
Does anybody really believe that election results at this point in declining,
defacto bankrupt america’s history mean anything at all (bi-partisan corruption,
perpetual war policy, incompetence, etc, in all three branches of government)]. He
was promptly cut off [they probably used an att line ( corrupt jersey based att
now owned by war criminal bushie bonkers Texas based sbc does the
government bidding which impacts on service and privacy)]. Slusiewicz, as
immediately follows the table sets forth the same cautionary note, and inter alia, I
would add the following for prospective full moon cycles in addition to the
numbers to help explain the fraudulent wall street lunacy (and yes, they are
criminally insane lunatics on wall street):
YEAR NEW MOON FIRST QUARTER FULL MOON LAST QUARTER

2010 Moon Phases dates
2010 Jan 7 10:40
Nov 6 04:52 Nov 13 16:39 Nov 21 17:27 Nov 28 20:36
Dec 5 17:36 Dec 13 13:59 Dec 21 08:13 t Dec 28 04:18
Year New Moon First Quarter Full Moon Last Quarter

2011 Moon Phases dates
2011 Jan 04 09:03 Jan 12 11:31 Jan 19 21:21 Jan 26 12:57
Feb 3 02:31 Feb 11 07:18 Feb 18 08:36 Feb 24 23:26
Mar 4 20:46 Mar 12 23:45 Mar 19 18:10 Mar 26 12:07
Apr 3 14:32 Apr 11 12:05 Apr 18 02:44 Apr 25 02:47
May 3 06:51 May 10 20:33 May 17 11:09 May 24 18:52
Jun 1 21:03 Jun 9 02:11 Jun 15 20:13 Jun 23 11:48
Nothing to Cheer About Slusiewicz ‘My daughter is a cheerleader at her school.
As you know, cheerleaders have to cheer for their teams through good and bad
times no matter what. It seems that investors today are acting as cheerleaders for
the Federal Reserve. The current chant goes something like this; “Go Ben – Print
more money – Buy more Bonds! Go Ben Go – Buy more Assets!” It doesn’t
matter that this same Fed that back in the beginning of 2007, when New Century
Financial (the first big time subprime lending company) failed, the Fed continued
to talk about ‘excess liquidity.’ When the problems became worse the Fed said
that the problems would be contained to only subprime loans. When the
problems spread from subprime to prime loans - this same Fed clearly
announced that the problems would be minor and not extend into the rest of the
US economy. When the economy started into a full blown recession in 2008– Fed
officials were saying it would only be a soft patch in a robust economy until it
was too late. They were behind the curve ball all the way down. The first
Quantitative Easing program, which had the Fed buying mortgage securities in an
attempt to keep interest rates low to stimulate the housing market, was only
partially successful. Because, while interest rates for mortgages stayed low,
seniors on fixed incomes suffered and the housing market still remains
vulnerable. So far Fed actions have not been too successful are reviving our
economy on a widespread basis – just look at job growth or the lack thereof.
Some will argue that without the Fed things would have been much worse. That is
debatable. My contention is that we would have dropped farther and faster, but
the recovery would have also been much quicker without the humongous debt
burden we created that will likely last for generations. But that is not the point of
discussion in this prose. The real concern is that if investors feel that America is
on the road to recovery – what do we need to print another trillion dollars for
(QE2)? Could it be that structurally we still have some issues? One would never
know it judging from the complacency of investors. The VIX fear index is at
extreme low levels. The AAII investors’ sentiment gauge also shows a high level
of bullishness and an extreme low level of bears. The spread from bulls to bears
is one that is normally associated with market tops. This could mean that
investors either trust or fear the bearded one who wields a big printing press.
Institutions are also very bullish as mutual funds are carrying near record low
levels of cash today. Also adding to the mutual fund dilemma has been the record
amount of redemptions by individual investors from stock funds over the
preceding several months. From a technical perspective, I see a very extended
rising bearish wedge pattern formed since the August 31st lows on the major
indices. The market run up over that timeframe also has an eerie similarity to the
run up from February to the April highs of this year. I observe a double top
formation with the current and April highs and the markets are currently
intersecting their respective 200 week declining moving averages, adding
resistance to the uptrend. We have more volume on the down days than on the up
days, signaling distribution. The High Frequency Traders that caused the flash
crash in May still constitute the majority of the volume each trading day – which
to me still demonstrates potential instability. The market set up is very similar to
the April highs, but the only thing missing is a catalyst to get the market moving
up or down from here. I am very concerned about the inverse relationship
markets have with the US Dollar. Sentiment on the dollar is 100% bearish! The old
adage is to invest opposite of everyone else – especially when everyone is all on
one side. You cannot get more bearish on the dollar than what it is today. If the
dollar reverses back up and the inverse relationship holds true to form – then the
stock market could be in for a reversal. Now the dollar bears are going to see the
QE2 that’s coming and state that the dollar is going to continue its slide. It wasn’t
too long ago that many pundits were saying that the Euro would not only drop to
par with the US dollar – but it would cease to exist as a currency. Look what has
transpired since. The only certainty is change. Now is a time for caution! Some
major events are coming soon. The election on November 2nd and the much
anticipated Fed announcement the next day to name a few. Clearly investors are
cheering, hoping, and waiting for the next move by the Fed. November 3rd cannot
get here soon enough. Is this going to be one of those buy on rumor and sell on
news events? Can the Fed live up to the expectations built into current market
prices for another round of quantitative easing? Will the Fed’s action really
spread to the overall economy and create jobs and boost our nation into a self
sustaining recovery? I’ll keep my daughter cheering on Ben Bernanke and his
friends – “Go Bernanke – the economy doesn’t want another spanky” – or
something like that. Disclosure: Author maintains positions in GLL, ZSL, TBT,
PCH, PCL, EUO and cash’
Flat Finish on Wall Street Midnight Trader Oct 26, 2010 --
• NYSE down 15.6 (-0.2%) to 7,530.80

• DJIA up 5.41 (+0.05%) to 11,169
• S&P 500 up 0.02 (flat) to 1,186
• Nasdaq up 6.44 (+0.3%) to 2,497
GLOBAL SENTIMENT
• Hang Seng down 0.11%

• Nikkei down -0.25%
• FTSE down 0.78%
UPSIDE MOVERS
(+) NTRS gains as reports says HSBC may make a bid.
(+) JASO projects better-than-expected Q3.
(+) COH beats with Q1 results.
(+) SUPG continues evening gain after earnings top year-ago levels.
(+) MIPS continues strong evening upside in wake of earnings beat.
(+) F loses early bid that followed earnings beat.
DOWNSIDE MOVERS
(-) DD gives up early gain to turn just lower; beats with weaker earnings, raises
guidance.
(-) TXN continues evening decline that followed Q3 estimates, Q4 guidance that
straddles Street view.
(-) UBS investment side performance clouds earnings beat.
(-) RF misses loss expectations.
(-) TLAB guides for revenue miss.
(-) ARMH dented by Q3 results.
(-) X earnings disappoint.
(-) ZRAN warns for Q4 after Q3 revenue miss.
(-) VLTR downgraded.
MARKET DIRECTION
Stock averages end barely in positive territory. Mixed earnings, disappointing
home price data and an improving dollar offset a report showing a rise in
consumer confidence.Consolidation kept a lid on stock markets. The blue-chip
DJIA has pushed up to score a fresh 2010 high a couple of times in recent
sessions before edging back to close off that mark.Stocks turned positive at mid-
day as a consumer sentiment report offered some support for the broader
market.U.S. consumer confidence rose in October to 50.2, according to the
Conference Board. Economists had expected a reading of 50, according to a
MarketWatch poll. Confidence for September was revised up to 48.6, from a prior
estimate of 48.5. The barometer on consumers' expectations rose to 67.8 in
October from 65.5 in September, while consumers' assessment of current
conditions rose to 23.9 from 23.3.The U.S. August Case-Shiller home price index,
released before the bell, fell 0.2%, but is up 1.7% in the past year.Ford Motor Co.
(F) and Coach (COH) were gainers after their respective results, while Texas
Instruments (TXN) and US Steel Corp. (X) disappointed with their earnings and
outlooks.
Wall St advances on dollar weakness, Fed bets (Reuters) – [ Look at the

aforementioned headline. Isn’t anyone getting the sense of how totally
preposterous this is? Then there’s the ‘market frothing’ used home foreclosure /
distressed home sales number … previous wall street b*** s*** story, the election
and consequent gridlock story … as if they’re substantially different …perpetual
war, runaway nation-bankrupting record deficit spending, incompetence,
corruption (still no prosecution of the wall street frauds), etc. What total b***
s***! ] U.S. stocks rose to a five-and-a-half month high on Monday as a falling
dollar, partly driven by expectations of further stimulus by the Federal Reserve,
prompted investors to buy riskier as... [ Davis: ‘… all profits are inflated by 10%
(from falling, debased dollar) and that 10% is the E that gets divided from the P
and gives us a much better price/multiple to hang our hats on and that gets
investors to BUYBUYBUY …’ Previous pre-crash: The bull market that never
was / were beyond wall street b.s. when measured in gold ] This is an
especially great opportunity to sell / take profits (these lower dollar,
hyperinflationary currency manipulations / translations to froth paper stocks will
end quite badly as in last crash)! This is a global depression. This is a secular
bear market in a global depression. The past up moves were manipulated bull
Decline Has Begun Smith ‘The Fed's campaign to boost the risk-trade in equities
by destroying the dollar has reached its limits. Now gravity will take hold as
stocks enter a Long Decline.On Monday, Daily Finance published my article Is the
Market Ready to Roll Over? These Signs Say Yes.
Don't Trust the Rally: "Its Just High-Speed Guys Chasing Each Other, Saluzzi
Says ‘Major averages are hovering near their highest levels since September
2008, but retail investors continue to flee the market. Domestic equity funds
have suffered outflows for 24 consecutive weeks through Friday, and over
$81 billion has come out of domestic equity mutual funds year to date,
according to Morningstar.At the risk of stating the obvious, several factors
explain why investors simply don't trust the rally. Twice bitten, thrice shy:
Having been burned by the bursting of the tech stock bubble in 2000, the
housing bubble and the financial crisis of 2008, investors are
understandably wary of getting sucked in again. A "lost decade" for index
investors hasn't helped either. It's the Economy Stupid: With the "real"
unemployment rate near 17%, millions of Americans simply have no money
to put into the market; many are cashing out their 401(k) plans and
otherwise raiding their nest eggs in an effort to stay afloat. Given the
economic backdrop, it's no surprise many investors see the rally as being
detached from reality and due only to the Fed's easy money policies...and
the promise of more! "We're not seeing any sort of growth other than
stimulus," says Joseph Saluzzi, co-founder of Themis Trading. "That is a
very disturbing thing -- the constant stimulus that keeps on coming that
really does nothing other than barely keep you above [breakeven] on the
GDP print." In addition, Saluzzi says investors are rightfully worried about a
market dominated by "high-speed guys just chasing each other up and
down the price ladder." Unsafe at High Speeds As has been widely reported,
equity trading volume and regularly approaches 70%. Saluzzi isn't opposed
to high-frequency trading per se, calling it a "byproduct of the market
structure," as detailed in the accompanying video. But he believes that
structure is broken, thanks to rules promoting computer-driven trading,
most notably Reg NMS. As a result of regulatory changes and new
technology, events like the May 6 ‘flash crash' "will happen again," he says.
"There's not a doubt in my mind." Many retail investors feel the same way,
another reason for the mistrust of the rally and why about $65 billion of the
equity fund outflows this year have occurred in the five months since the
"flash crash".’
Want to get away with murder? Become a bank Fortune | Even before the
foreclosure problem appeared, the level of public distrust of our financial
and political systems was approaching the pathological.
Food Prices Expected to Rise Sharply CNBC | In its most recent CPI report for
food, the USDA reported that prices are expected to rise in 2011.
Potential AIG Bailout Loss Was Concealed By Treasury, Federal Auditor Says The
U.S. Treasury concealed $40 billion in likely taxpayer losses on the bailout of
American International Group (AIG.N), the New York Times said, citing a
report by Neil Barofsky, the special inspector general for the Troubled Asset
Relief Program.
How Did the Banks Get Away With Pledging Mortgages to Multiple Buyers? I’ve
repeatedly documented that mortgages were pledged multiple times to
different buyers. In response, some people (including one of the country’s
top bankruptcy lawyers) have told me they don’t buy it.
Bill Black On Foreclosuregate: Calls For The Immediate Termination Of Bernanke,

Geithner And Holder Bill Black, who will soon, together with Neil Barofsky,
be a guaranteed shoe-in for the POTUS/VP position (both as independents,
of course), was on the Ratigan show today, following on his op-ed from last
week calling for the long-overdue nationalization of Bank of America, and
discussing the rampant fraud at the heart of mortgage gate.
Greece Likely to Default By 2013 as Debts Remain, El-Erian Says Greece is likely
to default over the next three years because budget-cutting won’t be enough
to reduce the nation’s debt burden, Pacific Investment Management Co.
Chief Executive Officer Mohamed A. El-Erian said.
National / World
White House Media Who**s Caught In Rand Paul “Stomping” Cover-Up Paul
Joseph Watson | Media Matters and Think Progress – owned by group
committed to “promoting the policies of Barack Obama,” completely fail to
mention that Rand Paul supporter was also victim of assault.
Stomping of MoveOn Activist at Rand Paul Event: Staged Incident? Infowars.com |

The corporate media will insinuate that Rand Paul’s supporters in Kentucky
are jackbooted fascist thugs.
George Soros: Legalize Marijuana Kurt Nimmo | For Soros, marijuana legalization
is about taxation, pure and simple.
Contrived Propaganda Tapes Reveal War On Terror Fraud Paul Joseph Watson |
Pearlman and Awlaki videos released within 48 hours of major
embarrassments for US military-industrial complex.
Millions Of Unemployed Americans Now Live As Paupers The Economic Collapse |
This is national economic suicide, but our politicians have become so
addicted to debt that there doesn’t seem to be much hope that things can be
turned around any time soon.
Republicans Want Israeli Aid Transferred to Pentagon Ynetnews.com [ How

pathetic and self-destructive! The nation’s defacto bankrupt and crumbling
and they’re worried about securing an even larger stipend for war criminal
nation and scofflaw israel. ] Disconnecting Israel from the foreign aid’s law
will guarantee the continued support while also allowing the Republicans to
take control of the foreign aid budget and the money flow to other countries.
Al Qaeda Leader Dined at the Pentagon Just Months After 9/11 Fox News | Anwar
Al-Awlaki may atop the CIA’s kill or capture list, but he was also a lunch
guest at the Pentagon within months of 9/11.
Election Fraud Worries Already Rampant: Widespread Reports Of Machines

Flipping Votes Significant errors with voting machines have already begun
to surface across the country, prompting fears that fraud could once again
be a deciding factor in the elections this November.
Public Optimism in U.S. System of Government Hits a 36-year Low Optimism in

the country’s system of government has dropped to a new low when
measured against polls going back 36 years, and the public’s belief that
America is the greatest nation on earth, while still high, has fallen
significantly from its level a generation ago.
Congressional Report Casts Doubt on Constitutionality of Obamacare’s

Individual Mandate A report from the Congressional Research Service (CRS)
casts doubt on the two main arguments used by the Obama administration
to defend the individual insurance mandate that is the central component of
the controversial health “reform” law.
Bernanke Asset Purchases Risk Unleashing 1970s Inflation Genie For the second
time since he became chairman in 2006, Ben S. Bernanke is leading the
Federal Reserve into uncharted monetary territory.
Contrived Propaganda Tapes Reveal War On Terror Fraud Just two days after it
was revealed that Al-Qaeda mastermind Anwar Al-Awlaki had met with
Pentagon top brass only a matter of months after 9/11, an organization
founded by the daughter of a former Israeli military intelligence officer
released a video tape of Awlaki re-affirming his commitment to global jihad.
A group of second graders could probably have come up with a more
sophisticated propaganda campaign than that concocted by the SITE group
this past weekend.
‘West using Iranophibia to sell arms’ The Iranian foreign ministry spokesman
says the West is spreading of Iranaphobia to revive the arms market and
distract regional states from other threats.
Humiliate, strip, threaten: UK military interrogation manuals discovered The

British military has been training interrogators in techniques that include
threats, sensory deprivation and enforced nakedness in an apparent breach
of the Geneva conventions, the Guardian has discovered.
Revealed: FBI investigated claim that group threatened de-icing equipment when
probing crash that killed Senator Wellstone FBI files obtained by Minnesota
Public Radio published Monday shed new light — and perhaps shadows —
onto the life and death of former Democratic Minnesota Sen. Paul Wellstone,
who was killed when his twin-engine plane crashed in 2002.
Karzai admits receiving ‘bags of money’ from Iran Afghan President Hamid Karzai
admitted Monday that his chief of staff had received “bags of money” from
Iran but insisted the payment was transparent and a form of aid from a
friendly country.
War protester hurls shoes at ex-Australian prime minister John Howard on live
television A man protesting against the Iraq war hurled his shoes at
Australia’s former prime minister during a live TV show.
Drudgereport: CHICAGO: 'Glitch' with vote-by-mail system; Hundreds of

thousands of voters may be disenfranchised...
UPDATE: Tensions flare offstage at KY debate; Dem supporter steps on foot
of woman wearing surgical boot...
ANTI-REPUBLICAN PROTESTER STOMPED...
Bill Clinton: 'It's What Happened To Me In 94'...
SHOCK POLL: OBAMA HITS 37 APPROVAL...
Dem candidates shun president...
Obama: My name's not on ballot, but my agenda is...
Fiorina Admitted to Hospital for Infection...
WH bristles over top Republicans remarks...
ABCNEWS NOTE MIKE ALLEN PLAYBOOK MSNBC FIRST READ WASH
POST RUNDOWN...
REID 'FREE FOOD' AT TURNOUT EVENTS
UNIONS 'GIFT CARDS' FOR VOTES
SOROS: LEGALIZE THE WEED... [ … In his opinion piece, Soros said that
the nation’s marijuana laws "are clearly doing more harm than good" at a
cost of billions of dollars a year "to enforce this unenforceable
prohibition."Soros wrote that regulating and taxing marijuana would reduce
the crime and violence linked to criminal drug gangs and violations of civil
liberties "that occur when large numbers of otherwise law-abiding citizens
are subject to arrest." He also noted that minorities are arrested at higher
rates for marijuana crimes, creating arrest records that may follow them
through life.Although he endorsed Proposition 19, noting that it would allow
recreational use and small-scale cultivation, Soros also suggested "its
deficiencies can be corrected on the basis of experience." Besides allowing
adults 21 and older to grow and possess marijuana, the initiative would
allow cities and counties to authorize commercial cultivation, sales and
taxation … ( My position is similar but for the reason to take the profit from
the gangs, criminals, and to tax it). ]
VEGAS: 'I WENT TO VOTE AND HARRY REID'S NAME WAS ALREADY
CHECKED'...
Voting Machine Techs Are SEIU...
N CAROLINA: I VOTED REPUBLICAN AND MACHINE CHECKED
DEMOCRAT...
[ Let’s get real … declining / fallen america’s a banana republic (pervasively
corrupt, defacto bankrupt, gunboat diplomacy, etc.)]
Bernanke on U.S. recovery, Federal Reserve policy (Washington Post) [ A credit
to Mr. Irwin for his novel and imaginative approach to expressing well placed
skepticism. He’s certainly come a long way from his glass half-full days!
Ohio Congressional Candidate Calls for an Audit of Federal Reserve
Constitution Party Candidate David Ryon, running for the 15th District of
Ohio, called for an Audit of the Federal Reserve in an interview with Jerry
Revish on WBNS-10tv. Dollar at Risk of Becoming ‘Toxic Waste’ The dollar’s
slump could get far worse if the dollar index takes out last year’s low, Robin
Griffiths, technical strategist at Cazenove Capital, told CNBC Monday. WIRE:
Fed’s secretive $300B CITIBANK bailout The late Bloomberg News reporter
Mark Pittman asked the U.S. Treasury in January 2009 to identify $301 billion
of securities owned by Citigroup Inc. that the government had agreed to
guarantee. He made the request on the grounds that taxpayers ought to
know how their money was being used.] We wanted to do a Q&A with Fed
Chairman Ben Bernanke despite his press-shy tendencies.
U.S. operations in Kandahar push out Taliban (Washington Post) [ Break out the
bubbly, victory at last! Riiiiight! Reality … defacto bankrupt american forces
moved in, Taliban moved out. ]
Report: Treasury's AIG bailout loss estimate too optimistic (Washington Post)
[ How could anyone with an IQ exceeding 100 believe anything they say? -
Ohio Congressional Candidate Calls for an Audit of Federal Reserve
Constitution Party Candidate David Ryon, running for the 15th District of
Ohio, called for an Audit of the Federal Reserve in an interview with Jerry
Revish on WBNS-10tv. WIRE: Fed’s secretive $300B CITIBANK bailout The
late Bloomberg News reporter Mark Pittman asked the U.S. Treasury in
January 2009 to identify $301 billion of securities owned by Citigroup Inc.
that the government had agreed to guarantee. He made the request on the
grounds that taxpayers ought to know how their money was being used. ]
Sales jump 10 percent in September for existing homes (Washington Post) [

Wall St advances on dollar weakness, Fed bets (Reuters) – [ Come on! Look
Ready to Roll Over? These Signs Say Yes. ]
FDIC chairman: Warnings signs ignored (Washington Post) [ The irrelevance of

federal bureaucrats … I mean, really … tell us something we don’t know …
or, realistically, precede the foregoing by ‘As now’, which of course is reality
and relevant. Shoulda, coulda, woulda … isn’t everyone tired of paying
money the nation doesn’t have for excuses and incompetence … the non-
pros of the frauds on wall street and current fraud / scam is a glaring
additional example. Fire them,abolish lifetime appointees, etc.. ]
Don't Trust the Rally: "Its Just High-Speed Guys Chasing Each Other, Saluzzi
Says ‘Major averages are hovering near their highest levels since September 2008, but
retail investors continue to flee the market. Domestic equity funds have suffered
outflows for 24 consecutive weeks through Friday, and over $81 billion has come out of
domestic equity mutual funds year to date, according to Morningstar.At the risk of
stating the obvious, several factors explain why investors simply don't trust the rally.
Twice bitten, thrice shy: Having been burned by the bursting of the tech stock bubble
in 2000, the housing bubble and the financial crisis of 2008, investors are
understandably wary of getting sucked in again. A "lost decade" for index investors
hasn't helped either. It's the Economy Stupid: With the "real" unemployment rate near
17%, millions of Americans simply have no money to put into the market; many are
cashing out their 401(k) plans and otherwise raiding their nest eggs in an effort to stay
afloat. Given the economic backdrop, it's no surprise many investors see the rally as
being detached from reality and due only to the Fed's easy money policies...and the
promise of more! "We're not seeing any sort of growth other than stimulus," says
Joseph Saluzzi, co-founder of Themis Trading. "That is a very disturbing thing -- the
constant stimulus that keeps on coming that really does nothing other than barely keep
you above [breakeven] on the GDP print." In addition, Saluzzi says investors are
rightfully worried about a market dominated by "high-speed guys just chasing each
other up and down the price ladder." Unsafe at High Speeds As has been widely
reported, high-frequency trading routinely accounts for more than 50% of daily U.S.
equity trading volume and regularly approaches 70%. Saluzzi isn't opposed to high-
frequency trading per se, calling it a "byproduct of the market structure," as detailed in
the accompanying video. But he believes that structure is broken, thanks to rules
promoting computer-driven trading, most notably Reg NMS. As a result of regulatory
changes and new technology, events like the May 6 ‘flash crash' "will happen again," he
says. "There's not a doubt in my mind." Many retail investors feel the same way,
another reason for the mistrust of the rally and why about $65 billion of the equity fund
outflows this year have occurred in the five months since the "flash crash".’
Are TIPs a Gip?: Dave's Daily The story of the day was the Treasury's five-year
TIP sale. I'm as shocked as Cosmo Kramer on this but shouldn't be since TIP
yields were heading in this direction. Who would buy a bond with a negative
yield? What's the message for investors? Hyperinflation and soon! If it goes that
way the government will have to reconfigure the CPI to ex everything we do
except the cost of government. Elsewhere there was news existing home sales
were higher--big whoops! Markets rallied higher early mostly on the same old
theme: a weak dollar is a good thing since not much was accomplished at the G-
20. The USA is rapidly becoming the world's laughing stock ... [ Laughing stock
indeed! ]
Hope Is Not a Strategy: Or Is It? Moenning ‘Anyone who has been around the
investing game for any length of time is likely familiar with the old saw, “Hope is
not a strategy.” This famous Wall Streetism reminds investors and traders alike
that holding onto a losing position in the hope that it will come back to your
purchase price is not a sound strategy. Nor is hoping that the stock in question
will suddenly come through with blowout earnings, surprise with a new product,
or be bought out by a competitor. No, the stock market game is about dealing
with what is happening, not what you hope to see in the future. However, it
appears to be quite clear that hope is indeed the singular driving factor in the
stock market these days. For example, there is the hope that Bernanke and Co.
will ride in on their white horses to save the economy with a little something they
like to call QE II. There is hope that the elections will bring an end to the anti-
business environment and perhaps remove some of the uncertainty surrounding
taxes, regulations, etc.There is hope that the economy will continue to improve
and that the Chinese will be able to walk the tightrope between avoiding bubbles
and maintaining a strong economy. There is hope that the G20 gathering will put
an end to the “competitive currency devaluations” (aka currency wars). There is
hope that the American consumer will continue to avoid saving and return to
spending everything they make (and then some). And there is a fair amount of
hope that the PIGI’S acronym will quickly fade from people’s memories. It is my
humble opinion that hope relating to any or all of the above has been responsible
for pushing up the stock market indices since September 1st. At last check, the
S&P sports a gain of nearly 13% over the last 38 trading days while the venerable
DJIA is up 11.2% and the NASDAQ has climbed a nifty 17.3%. Not bad for a
couple months work, eh?. Lots of people are comparing the current joyride to the
upside to the February-April affair, during which S&P gained roughly 15% over a
period of two and one-half months. Perhaps the comparisons are being made
because of the similarities of the rallies in terms of breadth and duration. Perhaps
the comparisons are being made because the Dow is now back to within a
stone’s throw of the highs for this bull market cycle that were set on April 26th.
And perhaps the comparisons have arisen from the idea that during the Feb-April
jaunt, it was also hope that things would be better going forward that drove the
action. However, I’d like to take exception with that last idea as the current rally’s
brand of hope is a horse of a completely different color. You see, during the
market’s spring fling, the economic data was coming in consistently better than
expectations. If you will recall, this was before the public knew that the recession
had ended (although we had been suggesting such since late summer). Thus, the
hope at that time had to do with the idea that the economic recovery might
actually be better than expected. And since no one in their right mind was overly
optimistic about the outlook at that point in time, suddenly there was a lot of
room for discounting the upside. Of course, the fun ended abruptly when the
world started to fret over the idea that Greece’s financial woes were going to drag
the world back into crisis. And then once that concept took hold, traders
immediately tossed aside the rose colored glasses and started employing the “R”
word with regularity. But, once it became clear that the “soft patch” had
subsided, traders began to once again look ahead to blue skies. Which bring us
back to hope. While I am a trend-follower at heart, I DO need to understand and
accept the reasoning behind the move in order to be wholeheartedly onboard the
train. And as such, I’m growing more than a little concerned that the hope trade
may be setting us up for disappointment at some point in the near future. Unlike
the Feb-April rally, which was based on data, this rally is based on hope and hope
alone. (Well, okay, there have been some decent earnings numbers showing up
now and again and the economic data hasn’t exactly been a disaster.) In short,
the hope is that David Tepper is right – that stocks win regardless of whether or
not the economy grows from here. Now toss in the idea that the Fed’s latest plan
involves pushing rates that it normally doesn’t control lower and you’ve got a
recipe for a declining dollar. And since traders have their fancy new computers
set to buy “risk assets” (commodities, stocks, emerging markets) whenever the
dollar falls, well, it’s been a good time to own equities. However, at some point,
this “trade” is going to run its course. At some point, the dollar’s decline will end.
At some point, reality will set in that the current economic growth rate (said to be
in the 2% - 2.5% range for 2011) can only generate so much in terms of earnings
power. And unless the Fed can magically engineer a recovery in jobs sooner
rather than later, at some point, disappointment might rear its ugly head. Sorry to
be a Debbie Downer on this first day of ski season (yes fans, Loveland ski area in
Colorado once again takes home the prize as the first resort to crank up its lifts),
but I’m of the mind that, at some point, traders will be reminded of the fact that
hope is not a strong reason to keep buying stocks. But until then, I plan to
continue to enjoy the view from these rose-colored glasses and ride the tide.
Disclosure: No positions
Andy Xie: “If You Print A Trillion, I’ll Print A Trillion The Daily Bail | The world
seems on course to another crisis in 2012.
The Great IMF Fire-Sale of the UK has Begun Phil Brennan | This is a fight against
neo-feudalism, a fight for our very lives.
Germany Accuses US of Indirectly Manipulating Dollar Reuters | German

Economy Minister Rainer Bruederle took issue with what he called a U.S.
policy of increasing liquidity, saying it indirectly manipulated exchange
rates.
Ohio Congressional Candidate Calls for an Audit of Federal Reserve Constitution

Party Candidate David Ryon, running for the 15th District of Ohio, called for
an Audit of the Federal Reserve in an interview with Jerry Revish on WBNS-
10tv.
Dollar at Risk of Becoming ‘Toxic Waste’ The dollar’s slump could get far worse if
the dollar index takes out last year’s low, Robin Griffiths, technical strategist
at Cazenove Capital, told CNBC Monday.
WIRE: Fed’s secretive $300B CITIBANK bailout The late Bloomberg News reporter
Mark Pittman asked the U.S. Treasury in January 2009 to identify $301 billion
of securities owned by Citigroup Inc. that the government had agreed to
guarantee. He made the request on the grounds that taxpayers ought to
know how their money was being used.
Goldman: The Fed Needs To Print $4 Trillion In New Money With just over a week
left to the QE2 announcement, discussion over the amount, implications and
effectiveness of QE2 are almost as prevalent (and moot) as those over the
imminent collapse of the MBS system.
Peter Schiff: ‘US No.1 offender to blame for global imbalances’ A U.S. proposal
to restrict how much countries should be allowed to borrow or export has
run into opposition at a G20 meeting in South Korea. Japan, Germany and
Russia have criticised the so-called “planned economy” thinking.
Investment strategist Peter Schiff told RT that Washington is the one to
blame for creating the global imbalances that threaten the world’s financial
stability.
100 Dollar Oil Is Coming The price of oil has been hovering around 80 dollars a
barrel for quite some time now, but get ready, because it is going to move
significantly higher.
National / World
Gadahn Call To Attack Americans Comes From Israel “Israeli terrorist “clones”
are responsible for most hard line rhetoric, threats and, if we investigated
closely, have actually recruited terrorists and directly inspired, if not
planned and executed, attacks on Americans…Gadahn is part of it, so is
Wikileaks”
America Is Gone There is a whiff of anarchy in the air this morning. As I sit here
writing, a conservative victory in the midterm elections looms. But I find no
reason to be optimistic.
American People To Dems And GOP: Get Out Of Office, You Don’t Speak For Us
Steve Watson | Public wants a third party, but sees problems with
bastardized Tea Party.
Think Soros Leaks RINO Neocon Takeover Doc Kurt Nimmo | One faction of
globalist tools outing another faction of globalist tools. That’s how we play
politics in America today.
The two most dangerous words you’ve probably never heard of Adam Murdock,
MD | It is within the free market that solutions should and can be found for
every medical problem.
Welcome to the Greatest Depression: California’s Best and Brightest Face

Homelessness, Poverty Kurt Nimmo | Intelligent people are spinning their
wheels as they are systematically being pauperized and converted into the
latest class of serfs by the banksters.
Cyberwarfare: US Seeks To Shut Down Enemy Power Grids Paul Joseph Watson |
When an extremist group shuts down US infrastructure, it’s labeled a
terrorist attack, but when the US does it to another country, it’s merely
cybersecurity.
American People To Dems And GOP: Get Out Of Office, You Don’t Speak For Us
A whopping majority of 62% of the American people believe it will be a good
thing for the country if almost all incumbents from both parties were
removed in the upcoming midterm election.
Minority Of Americans Now Have Faith In Two Party Scam Only a minority of
American voters now have faith in either Democrats or Republicans
according to a new Rasmussen poll out today, with favorability toward a
third party surging amidst a wave of anti-incumbent success.
Think Soros Leaks RINO Neocon Takeover Doc One faction of globalist tools
outing another faction of globalist tools. That’s how we play politics in
America today.
Welcome to the Greatest Depression: California’s Best and Brightest Face

Homelessness, Poverty I don’t know why CBS insists on calling what’s
happening economically in this country the “Great Recession.” It’s the
Greatest Depression. It is quickly shaping up to be worse than the first Great
Depression.
Debt Has Increased $5 Trillion Since Speaker Pelosi Vowed, ‘No New Deficit
Spending’ When Rep. Nancy Pelosi (D-Calif.) gave her inaugural address as
speaker of the House in 2007, she vowed there would be “no new deficit
spending.” Since that day, the national debt has increased by $5 trillion,
according to the U.S. Treasury Department.
Cyberwarfare: US Seeks To Shut Down Enemy Power Grids While proponents of

cybersecurity continually emphasize the necessity of passing legislation
that will hand the Obama administration the power to shut down the Internet
in the name of defending critical infrastructure, every indication suggests
that cybersecurity is nothing less than an offensive agenda to enable the US
government to launch its own attacks against other groups and countries.
600 foreign troops killed in Afghanistan in 2010 The number of foreign troops to
die this year in Afghanistan has reached 600, by far the highest annual toll in
nine years of war despite tentative reconciliation efforts with the Taliban.
Former Chairman of Joint Chiefs Hugh Shelton: Bush officials pushed Iraq war
‘almost to the point of insubordination’ Gen. Hugh Shelton, who served as
the Chairman of the Joint Chiefs of Staff from 1997 to 2001, told ABC’s
Christiane Amanpour on Sunday that top officials in the Bush
Administration pushed for war in Iraq “almost to the point of
insubordination.”
Julian Assange to RT: WikiLeaks gives ‘most accurate picture of war’ The
shocking WikiLeaks release, which has revealed thousands of unreported
civilian casualties in Iraq, is the most accurate picture of war ever made, and
it is food for thought, says the website’s editor-in-chief. The report,
condemned by the Pentagon, claims that US commanders in Iraq ignored
evidence of torture and the murder of civilians.
Drudgereport: Dark
clouds for Dems as Obama embarks on last push...
Dem Hopeful Says Obama Can 'Shove It'...
'He ignored us and now he's coming into Rhode Island treating us like ATM
machine'...
Debt Has Increased $5 Trillion Since Speaker Pelosi Vowed, 'No New Deficit
Spending'...
States Weigh Letting Noncitizens Vote...
RUNDOWN...
REPUBLICANS 'GOTTA SIT IN THE BACK' [ The regressive veiled reference to ‘sit in the
back of the bus dark-skinned freedom riders’, the already mentally trouble wobama has really lost
it … he’s such a desperate and pathetic b*** s*** artist … who can take him seriously? I mean,
really! What an insult to the so-called base of constituents he’s appealing to … and, haven’t his
actions, ie., no-pros the wall street frauds, more war, etc., belied his words? He’s so pathetic! So
typical! ]
REPORT: First lady 'likely' to meet 'commercial sex workers' in India!
Presidential entourage books all 570 rooms in 5-star Taj Mahal Hotel...
Teleprompter to debut at India's Parliament when Obama speaks...
Photos show Israeli troops 'abusing Palestinians'...
WIRE: Fed's secretive $300B CITIBANK bailout...
Dollar at Risk of Becoming 'Toxic Waste'...
Hits new 15-year low versus yen...
Inflation-Protected Securities Yield Goes Negative for First Time...
FDIC Head Sounds Alarm on Foreclosure Litigation...
China, India, Brazil, Turkey get more power at IMF...
Deficit Panel Targets Areas to Cut...
U-TURN: Obama 'to focus on deficit in next 2 years'...
CLINTON PLAYS TO HALF-EMPTY HIGH SCHOOL GYM
70% Of All Stock Market Trades Are Held for An Average of 11 SECONDS [ This is
a scam / fraud of huge proportion; a scam / fraud of a magnitude that most
people could neither imagine nor comprehend. ] In the stock market,
program trading dominates volume. I heard recently that 70% of trade
positions are held for an average of 11 seconds.
Regulators shut down 7 banks Bank regulators closed seven banks Friday,
bringing the total of number of bank failures for the year to 139, the Federal
Deposit Insurance Corporation said.
Strauss-Kahn Says Officials at G-20 Agreed on `Biggest Reform Ever’ of IMF

Group of 20 nations agreed on an overhaul of the International Monetary
Fund that gives a larger voice to emerging market nations, IMF Managing
Director Dominique Strauss-Kahn said.
Las Vegas Unemployment Rate Hits 15 Percent While unemployment statewide

remained unchanged in September, jobless numbers in Las Vegas rose to 15
percent, a new record.
Reid: ‘But For Me, We’d Be in World-Wide Depression’ [ Wow! … I’m sure it’s the
water in D.C. … they’re all drinkin’ it! ] Where would the world be without
Harry Reid?
WikiLeaks papers detail Iraq torture, US killings Al-Jazeera on Friday released

what it called “startling new information” from US documents obtained by
WikiLeaks, alleging state-sanctioned Iraqi torture and the killing of hundreds
of civilians at US military checkpoints.
Spiegel: WikiLeaks logs may reveal war crimes In its early analysis of the Iraq war
logs released by whistleblower site WikiLeaks on Friday, the German paper
Der Spiegel pointed to several accounts of what it calls “dubious attacks” by
US Apache helicopters that may have amounted to war crimes.
Issa: ‘Not a chance’ of Obama impeachment under GOP House If Republicans
take control of the House, there is “not a chance at this point” that they will
try to impeach President Obama, a top Republican lawmaker said this week.
Angle Targets Obama, Not Reid, in New Ad Republican challenger Sharron Angle
rolled out a harsh welcome for President Obama, who dropped into Las
Vegas last night in a desperate bid to save Senate Majority Leader Harry
Reid.
Democrats Behind Tea Party Cyber Attacks? Speculation is rife that Democrat
activists or even the Obama administration itself may have been responsible
for an attack which brought down a prominent Tea Party website right as the
organization targeted was running a major fund-raising drive and on the day
after Obama directed the Pentagon to attack “cyberthreats” within the
United States.
Wikileaks: Secret Iraq War Death Toll Set at 285,000 In what is being described as
the largest release of secret U.S. military documents ever, whistle-blowing
web site WikiLeaks has released a trove of classified reports about the war
in Iraq, including a secret U.S. government tally that put the Iraqi death toll at
285,000, according to news sources that received advanced copies of the
documents
WikiLeaks papers detail Iraq torture, US killings Al-Jazeera on Friday released

what it called “startling new information” from US documents obtained by
WikiLeaks, alleging state-sanctioned Iraqi torture and the killing of hundreds
of civilians at US military checkpoints.
Spiegel: WikiLeaks logs may reveal war crimes In its early analysis of the Iraq war
logs released by whistleblower site WikiLeaks on Friday, the German paper
Der Spiegel pointed to several accounts of what it calls “dubious attacks” by
US Apache helicopters that may have amounted to war crimes.
Issa: ‘Not a chance’ of Obama impeachment under GOP House If Republicans
take control of the House, there is “not a chance at this point” that they will
try to impeach President Obama, a top Republican lawmaker said this week.
Angle Targets Obama, Not Reid, in New Ad Republican challenger Sharron Angle
rolled out a harsh welcome for President Obama, who dropped into Las
Vegas last night in a desperate bid to save Senate Majority Leader Harry
Reid.
Democrats Behind Tea Party Cyber Attacks? Speculation is rife that Democrat
activists or even the Obama administration itself may have been responsible
for an attack which brought down a prominent Tea Party website right as the
organization targeted was running a major fund-raising drive and on the day
after Obama directed the Pentagon to attack “cyberthreats” within the
United States.
documents
2010 Is Just Deck Chair Politics on the USS Titanic Ron Holland | America today is
a one-party state much like the Soviet Union, China or Nazi Germany.
Establishment Tea Party Moneybomb Hit by Denial-of-service Attack Kurt Nimmo |

One week after Alex Jones’ Infowars Moneybomb, Fox News host Glenn
Beck shilled a FreedomWorks moneybomb.
Fabian Society’s London School of Economics Predicts “Savage Austerity” in
America Infowars.com | Quantitative easing by Federal Reserve will impose
“savage austerity” on the American people.
What’s in WikiLeaks’ Iraq war logs? Pakistan News 24 | Whistle-blowing website

WikiLeaks on Friday released nearly 400,000 classified US military files
chronicling the Iraq war from 2004 through 2009, the largest leak of its kind
in US military history.
Wikileaks Hacked By “Very Skilled” Attackers Prior To Iraq Doc Release Andy
Greenberg | Source said attack represented the first breach in Wikileaks’
history.
Secret Iraq war records reveal grim new details (Washington Post) Logs released
by WikiLeaks offer chilling insights about conflict's death toll and the tactics of
Iraqi leaders who have taken over as U.S. troops exit. [ Now why did I think the
u.s. military’s numbers were all wet? Poll: Does WikiLeaks put soldiers in
danger? I haven’t looked at this poll, but my inner poll says needless wars in
other people’s lands put soldiers at risk, particularly when your nation is defacto
bankrupt. ] Previous: 77,000 Iraqis killed from 2004 to August 2008, U.S. military
says (Washington Post) [ And you can take that to the fraudulent american bank
… riiiiight! … Come on … americans lie about everything and certainly this … A
conservative estimate from AP through only 2007: Study: 151,000 Iraqis died in
conflict’s violence Surveyors face danger to count casualties from 2003 to 2006
The Associated Press - updated 1/9/2008 7:15:50 PM ET 2008-01-10T00:15:50
About 151,000 Iraqis died from violence in the first three years after the United
States invaded, concludes the best effort yet to count deaths — one that still may
not settle the fierce debate over the war's true toll on civilians and others …
americans are just lying war criminal american scum. Obama’s Finest Hour:
Killing Innocent People For “Made-Up Crap” Floyd Empire Burlesque Oct 22,
2010 If ever I am tempted by the siren songs of my tribal past as a deep-fried,
yellow-dawg Democrat, and begin to feel any faint, atavistic stirrings of sympathy
for the old gang, I simply think of things like the scenario below, sketched last
week by Johann Hari, and those wispy ghosts of partisanship past go howling
back to the depths:
Imagine if, an hour from now, a robot-plane swooped over your
house and blasted it to pieces. The plane has no pilot. It is controlled
with a joystick from 7,000 miles away, sent by the Pakistani military
to kill you. It blows up all the houses in your street, and so
barbecues your family and your neighbours until there is nothing left
to bury but a few charred slops. Why? They refuse to comment. They
don’t even admit the robot-planes belong to them. But they tell the
Pakistani newspapers back home it is because one of you was
planning to attack Pakistan. How do they know? Somebody told
them. Who? You don’t know, and there are no appeals against the
robot.Now imagine it doesn’t end there: these attacks are happening
every week somewhere in your country. They blow up funerals and
family dinners and children. The number of robot-planes in the sky is
increasing every week. You discover they are named “Predators”, or
“Reapers” – after the Grim Reaper. No matter how much you plead,
no matter how much you make it clear you are a peaceful civilian
getting on with your life, it won’t stop. What do you do? If there was
a group arguing that Pakistan was an evil nation that deserved to be
violently attacked, would you now start to listen?…[This] is in fact an
accurate description of life in much of Pakistan today, with the sides
flipped. The Predators and Reapers are being sent by Barack
Obama’s CIA, with the support of other Western governments, and
they killed more than 700 civilians in 2009 alone – 14 times the
number killed in the 7/7 attacks in London. The floods were seen as
an opportunity to increase the attacks, and last month saw the
largest number of robot-plane bombings ever: 22. Over the next
decade, spending on drones is set to increase by 700 per cent.
Friends, it’s very simple: if you support Barack Obama and the Democrats —
even if reluctantly, even if you’re just being all sophisticatedly super-savvy and
blogospherically strategic about it, playing the “long game” or eleven-
dimensional chess or what have you — you are supporting the outright murder of
innocent people who have never done anything against you or yours. You have
walked into a house, battered down the bedroom door, put the barrel of a gun
against the temple of a sleeping child, and pulled the trigger. That is what you are
supporting, that is what you are complicit in, that is what you yourself are doing.
]
Black Panther case reveals schism (Washington Post) [ I mean, really … You’d
think a black president and black ag would have more sense …
Drudgereport: WASHPOST: Black Panthers case taps deep racial divisions
at Justice... Previous: UPDATE: MORE CLAIMS OF RACE BIAS AT
PANTHER CASE... ex-Justice official quit over the handling of a voter
intimidation case against the New Black Panther Party accused his former
employer of instructing attorneys in the civil rights division to ignore cases
that involve black defendants and white victims US v. AZ... Cases against
Wall Street lag despite Holder’s vows to target financial fraud Obama broke
promises ) Disclaimer: I have been and continue to be opposed to an end to
a trade embargo on cuba; not because of their communist system (I’m
staunchly opposed to communism – ‘everybody’s equal except some
bureaucrats are more equal than others’, etc.), but solely because of their
grant of asylum to a black panther member who murdered a state trooper:
‘Assata Shakur - Wikipedia, the free encyclopedia Assata Olugbala Shakur
(born July 16, 1947[1] as JoAnne Deborah Byron, married name Chesimard[2]) is
an African-American activist and escaped convict who was a member of the
Black Panther Party (BPP) and Black Liberation Army (BLA). Between 1971
and 1973, Shakur was accused of several crimes, of which she would never
be charged, and made the subject of a multi-state manhunt.[3][4] In May 1973,
Shakur was involved in a shootout on the New Jersey Turnpike, during
which New Jersey State Trooper Werner Foerster and BLA member Zayd
Malik Shakur were killed and Shakur and Trooper James Harper were
wounded.[5] Between 1973 and 1977, Shakur was indicted in relation to six
other alleged criminal incidents—charged with murder, attempted murder,
armed robbery, bank robbery, and kidnapping—resulting in three acquittals
and three dismissals. In 1977, she was convicted of the first-degree murder
of Foerster and of seven other felonies related to the shootout.[6] Shakur was
then incarcerated in several prisons, where her treatment drew criticism
from some human rights groups. She escaped from prison in 1979 and has
been living in Cuba in political asylum since 1984.’ - The black panthers
are not a bunch of ‘warm and fuzzy’ people. As for cuban rhetoric, I don’t
take anything they say seriously (I remind people that if you said something
anti-government in cuba, you’d be dead or in jail), although I’m not hesitant
to include a good point if made (ie., castro recently talking about nuclear
holocaust risk, etc.). Suit over voter intimidation -- reported by poll-watcher
Chris Hill, above -- roils Justice Dept.
Title insurers seek insulation from foreclosure losses (Washington Post) The
industry is maneuvering to protect itself from losses if courts rule that banks
have played fast and loose with the foreclosure process. But people who
buy foreclosed properties from banks may face some degree of loss despite
having a title policy.
Foreclosure crisis puts Wall St. reform to the test (Washington Post) [ What
reform? Those manipulated, high-frequency computerized churn-and-earn
trades have never been … more frequent … and the churn and earn fraud
never so lucrative … Previous: Survey: Half of Wall Street expects bigger
bonus this year (Washington Post) [ This is nothing short of incredible …
What they should be expecting, for the sake of the nation and the world, is
an 8 by 10 jail cell! ] Bloomberg The percentage anticipating a bigger bonus
increased from last year. Gerald Celente: “The selloff of America” Financial
institutions on Wall Street are preparing to pay a shocking record $144
billion dollars in compensation & benefits. This amid spiraling foreclosures
and an economic crisis that has devastated Americans, leaving many out in
the street. Gerald Celente of the Trends Research Institute says that the gap
between rich and poor in the US will continue to get larger because of the
bank bailout that Washington shelled out in 2008. Meyerson: Wrong way for
banks to get rich (Washington Post) [ Goldman Sachs Beats Estimates as
Banking Revenue Rises Christine Harper (bloomberg.com) ...Oct. 19 –
More unequivocal proof that crime in defacto bankrupt america pays … and
pays well … especially with other peoples money … though many don’t
realize that yet … no there’s no alchemy that produces real money out of
thin air and the money for the wall street frauds, high-frequency
computerized churn and earn must come from some place … guess … ]
Bernanke can't save the economy himself (Washington Post) What Bernanke
needs to say [ … he resigns … yes, no-recession-helicopter ben shalom or
b.s. for short, bernanke, with green shoots wilting on the vine, should resign
… other than frothing that fraudulent wall street market with high-frequency
programmed trades and debased dollars he can’t seem to print enough of,
and for all but wall frauds churn and earn profits as they retain their
fraudulent gains from the last debacle and this one, his policies are nothing
short of disaster for this nation and the world. That money going into wall
street pockets has to come from somewhere … guess. ] Another round of
quantitative easing isn't enough. Congress needs to take action, too.
G-20 split over Geithner plan (Washington Post) [ Riiiiight! When tiny tim ‘God
bless us everyone’ talks, like that old defunct Hutton brokerage firm, people
listen … then do the opposite … after all, defacto bankrupt american can
hardly be said to be nothing short of disasterous for not only this nation, but
the world as well. ]Treasury Secretary Timothy F. Geithner urged G-20
powers to cap the amount of mismatch between what they produce and
invest and how much they consume.
7 banks closed in Fla., Ga., Ill., Kan., Ariz. WASHINGTON (AP) – ‘Regulators on
Friday shut down a total of seven banks in Florida, Georgia, Illinois, Kansas and
Arizona, lifting to 139 the number of U.S. banks that have fallen this year as
soured loans have mounted and the economy has sputtered …’
Three Outrageously Contrarian Predictions - Simon Maierhofer, On Friday October

22, 2010, 7:10 pm EDT If you've lost money over the past 10 years, this statement may
seem like a personal assault: 'Timing the market is easy and profitable.' That's the
implied conclusion from a recent TrimTabs study.What's the recipe? A recent Wall
Street Journal article drew this lesson from the study: 'Over the past decade, it was
actually quite simple to time the market. All you had to do was buy when the public was
selling and sell when the public was buying.'Naturally, going against the crowd is easier
said than done. That's why it's often said that successful investing is simple, but it isn't
easy.Good investment opportunities come along only so often. Now seems to be the
time. A good opportunity offers more profit potential than risk of losses. Do the
Opposite 'Buy when the public was selling and sell when the public was buying,' was
the Wall Street Journal's conclusion. So, what's the public doing right now? The public -
this includes individual investors and Wall Street - is buying everything. Look around
you, the S&P (SNP: ^GSPC), Dow Jones (DJI: ^DJI), Nasdaq (Nasdaq: ÎXIC), small
caps, mid caps, international stocks (NYSEArca: EFA - News), emerging markets
(NYSEArca: EEM - News), bonds (NYSEArca: AGG - News), gold (NYSEArca: GLD -
News), silver (NYSEArca: SLV - News), and many other commodities (NYSEArca: DBC
- News) are up, up, up. Meanwhile, the U.S. dollar (NYSEArca: UUP - News) is down.
According to Wall Street and the media, the investment universe is full of profit sweet
spots. Stocks right now are a win-win scenario, at least so they say. Any bad news is
viewed to bring about more quantitative easing and is, therefore, good news and good
news is good news anyway. Gold is another sweet spot. There's no need to worry about
inflation or deflation. Gold is sure to profit either way, or so they say. From a
fundamental point of view, gold is as sound an investment today as real estate was a
few years ago. Of course with gold, this time is different. Isn't it always? The U.S. dollar
is doomed because more quantitative easing (more dollars in circulation) will reduce the
value of the current dollars in the system. The government doesn't care if the dollar falls
to oblivion, so why should you? Engrained Opinions Actually, there's a good reason to
watch what's going on with the dollar. All the assets mentioned above (stocks, bonds
and commodities) are denominated in dollars. A cheap dollar means higher prices and
vice versa. Over the past five months, the U.S. Dollar Index dropped as much as 15%.
Interestingly, it's after a 15% slide that the greenback has become despised. Investors
dislike the dollar as much today as they did in late 2009 when it was about to lose its
reserve currency status. At that time, the ETF Profit Strategy Newsletter went out on a
limb and predicted a major U.S. dollar rally. From November 2009 to June 2010, the
dollar soared as much as 20%, a diabolical move for currencies. In June, when fears
about Europe and a crumbling euro currency made the rounds (and optimism
surrounding the dollar was plentiful), the newsletter called for a dollar correction.
Prediction #1 - The Dollar will Rally This correction has morphed into a decline
pervasive enough to push dollar sentiment to an extreme that, historically, has
foreshadowed significant turnarounds. The notion of a trend reversal is confirmed by
technical indicators. Sunday night's Technical Forecast (part of the ETF Profit Strategy
Newsletter) stated: 'Last week's dollar action was encouraging as the U.S. Dollar Index
finished with a green candle low on Friday and since pushed above the lower
acceleration band. That's what bottoms are made of.' Friday's green candle low was
followed by two more green candles. On Tuesday (October 19), the U.S. Dollar Index
closed above its middle acceleration band. [chart] As far as a candle formation goes,
those are the initial stages of a trend reversal. Once again, a rising dollar is bad for
stocks and commodities. Prediction #2 - Commodities (Including Gold and Silver)
Will Decline Not only is the dollar way oversold, the commodity rally is stretched to a
point where a sharp and prolonged reversal could happen any moment. Net speculative
positions in many commodities are at record highs, as is the percentage of bullish
traders. We've seen time and again that extreme optimism is unhealthy for any market.
Albeit not a short-term timing tool, it's a big red flag. Once underway, the selling
pressure should affect nearly all commodities, including oil (NYSEArca: USO - News)
and agricultural commodities (NYSEArca: DBA - News). Prediction #3 - Nasdaq
Should Lead Equity Decline It's been publicized surprisingly little that the Nasdaq
1000 (Nasdaq: QQQQ - News) has already moved above its April recovery high. This
has largely been due to Apple's stellar performance. The Nasdaq's performance from
here will be very telling. If it's able to establish support above Monday's $51.52 high, the
slide in equity prices may be halted temporarily. If it isn't, watch out for a Nasdaq-led
decline across the board. Third One 'Free' - QE2 Won't Work If you took a poll on Wall
Street, 8 out of 10 Ivy League educated, Armani wearing, Mercedes driving Wall Street
Banksters would probably tell you that QE2 will work. The media agrees. When
September's jobless numbers went public, the figures were much worse than expected,
but stocks surged. Why? Associated Press headline: 'Faith in Fed pushes Dow past
11,000.' When stocks slid on October 14, hope of QE2 kept things from getting worse.
AP headline: 'Stocks dip; Likely Fed move keeps losses in check.' QE2 may end up
working for Wall Street, but it seems not to have worked for the economy. If it did work,
why would we need QE2? Obviously, the rumor of QE2 was enough to drive up stocks.
Will the actual news deliver the steak or just the sizzle? In POMO They Trust The fact
is that the Federal Reserve's Permanent Open Market Operation (POMO) purchases of
Treasuries have had a direct and delayed effect on the market's performance. Certain
purchases translated into positive performance 89% of the time (a detailed performance
analysis and schedule of future POMO purchases is available in the November issue of
the ETF Profit Strategy Newsletter). Should You Fight the Fed? Will the Fed win the
tug-of-war against sentiment, valuations, and technical analysis, all of which point
towards a correction, perhaps a drastic one? If history is a guide, the market will win ...
sooner or later. One way of navigating the current uncertainty is via support and
resistance levels. A break through overhead resistance is likely to result in higher
prices, while slicing through support may open the floodgates. The ETF Profit Strategy
Newsletter, along with the semi-weekly Technical Forecast, highlights the most recent
and applicable support/resistance levels along with corresponding target levels.
Wall St circuit breakers fail to ease market nerves [High frequency churn and
earn in motion, and draining main street / the nation! ] Mikolajczak NEW YORK
(Reuters) – ‘Market circuit breakers put in place after the May 6 "flash crash" have
not stopped large swings in U.S. stocks and traders remain wary of glitches in the
trading system. The speed of trading, owing to high frequency strategies, means
plenty of trades can take place even after a halt is put in place by circuit breakers.
The last stock to be halted due to a circuit breaker, Progress Energy Inc, had
more than 100 trades occur after the stock triggered a halt and resulted in nearly
60 canceled trades. "It's under the spotlight more now since May 6," said Joe
Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey. "I
don't want to say it's knocking at confidence, but some people get frustrated
about it." The circuit breakers were imposed by the U.S. Securities and Exchange
Commission to prevent the kind of turmoil seen on May 6 when the Dow Jones
industrial average lost then recouped around 700 points in about 20 minutes.
With the new regulations, head-scratching moves in individual issues are
increasingly under the microscope. On Monday, nearly $500 million in trades in
the SPDR S&P 500 ETF Trust were cancelled. The trades occurred at a price of
106.46, several points below where the index was trading at that time. The NYSE
Arca exchange attributed the trades being completed to an issue with a software
release, causing the closing auction cycle to run at 4:15 p.m. and the trades to be
ruled broken by NYSE Arca Market Management. Large orders filled on illiquid
exchanges -- a practice known as "ripping the book" -- have resulted in halts of
large stocks such as Nucor Corp. and Cisco Systems Inc. "It shows you the
fragmented market isn't necessarily working. When you had a central liquidity
place when there was two dominant exchanges you didn't have that type of
situation," added Saluzzi. Lately a handful of very small stocks have been the
target of trading strategies that result in sharp upward moves, seemingly without
news. LiveDeal, a company with a tiny market capitalization of $2.68 million, saw
its share price more than triple to $14 a share on Thursday from $4.42 the day
before. Shares fell to $9.89 on Friday …’
Trouble Comes in Threes: Dave's Daily
Putting an End to the 'Cash on the Sidelines' Myth Roche ‘We’ve highlighted the
financial punditry’s obsession with “cash on the sidelines” over the course of the
last year in attempts to show that there is really no such thing. The argument
from an investment perspective is utterly absurd. In general, investors like to
think that their cash is some sort of fuel for the market that will drive prices
higher. This is easily debunked simply by looking at the transactions at work.
When you buy stocks you are effectively swapping cash with the seller. It’s that
simple. There is no change in net financial assets. You merely swapped cash for
stock and the seller swapped stock for cash. The price you arrive at is merely a
function of psychology. Who is the more eager buyer or seller? While there is
technically “cash on the sidelines” this amount of cash on the sidelines is
relatively stable in any given period. It’s not changing with every transaction as
many would have you believe. Therefore, there is no fuel or pile of cash that is
just waiting to be injected into the market and drive prices higher. In terms of
corporate balance sheets the argument is equally misleading. You’ll often hear
the financial punditry discuss the asset side of the balance sheet while ignoring
the liability side. There’s all this “cash on the sidelines” just waiting to hire
people, merge with other companies, etc. The only problem is, debt has been
surging at the same time that cash levels rise. We’ve discussed this thoroughly in
the past (see here), but Mish at Global Economic Analysis (with the help of
Tableau Software) provided a great visual tool today that puts this reality into
perspective. We can see from the following tool that corporate balance sheets
aren’t nearly in the excellent condition that most people believe. CASH ON THE
SIDELINES? DON’T BELIEVE IT. [CHART] TOTAL CASH $3,705.5 BILLION -
TOTAL DEBT $4,455.1 BILLION = NET CASH (749.6 BILLION)’
Rallyin’ into the close to keep suckers suckered on top of bad news! The October
Philadelphia Fed Index hit 1.0, below the 1.5 that had been widely forecast.
Meanwhile, Leading Indicators for September increased 0.3%, as expected ( but
based upon the ‘stock prices floating on air and b*** s***’ component of same –
the ultimate ‘bootstrap’ ). This is an especially great opportunity to sell / take
profits (these lower dollar, hyperinflationary currency manipulations / translations
to froth paper stocks will end quite badly as in last crash)! This is a global
depression. This is a secular bear market in a global depression. The past up
moves were manipulated bull (s***) cycles (at best) in a secular bear market. This
has been a typically manipulated bubble as has preceded the prior crashes with
great regularity that the wall street frauds and insiders commission and sell into.
This is a typical wall street ‘programmed computerized high-frequency churn and
earn pass the hot potato scam / fraud as in prior crashes’. This national decline,
economic and otherwise, will not end until justice is served and the wall street
frauds et als are criminally prosecuted, jailed, fined, and disgorgement
imposed.The Stock Market's Long Decline Has Begun Smith ‘The Fed's campaign
to boost the risk-trade in equities by destroying the dollar has reached its limits.
Now gravity will take hold as stocks enter a Long Decline.On Monday, Daily
Finance published my article Is the Market Ready to Roll Over? These Signs Say
Yes.
QE2 Not Such a Slam-Dunk? Krasting The 100% certain sure thing in the market
today is that QE-2 will come on November 3rd and that it will be decisive in its
scope. Well I am not so sure any more.
• The Fed’s Beige Book from Wednesday did not make a case for an
economy that needed emergency measures. Yes there was some
discussion about the weak housing market and soft loan demand. But we
know that QE-2 is not going to fix those problems.
• It is of significance to me (and should be to all) that Zero Hedge was
featured in a Time/CNN article titled, Will the Federal Reserve Start a Civil
War?
I am certain that the Fed reads Zero Hedge. But how much influence they have is
a question. When it gets up to Time magazine however, it is another matter
altogether. It is not possible for the Fed to avoid the collective roar that is coming
from across the country at this point. If the Fed blunders with an unpopular QE-2
the results will be disastrous. Not only will the economy tank but the Fed will
have lost a good chunk of its remaining credibility. The downside risks to
Bernanke are enormous. I don’t think he believes he is in a popularity contest, but
he does know he can’t run monetary policy with protesters outside his door. How
much is he prepared to gamble given that he clearly does not have a consensus
amongst his own board? He is an academic, not a gambler.
• Today St. Louis Fed Bullard made remarks to reporters that were a warning
sign to me (and the market). He talked a much different game than what has
been dished out of late. He made reference to a smaller program. Maybe
less than $500billion (about half what is now in the street). He also threw
out something that blew me away. He suggested that the 11/3 decision was
in someway dependant on the Q3 GDP numbers that come out before the
Fed meets. Bullard even “spun” the numbers on the hot side:
it may come in a little stronger than the second quarter. So we have

to keep our eye on that.
Bond traders panicked and hit bids on long coupons. I like that read. Bullard gave
us a hint that maybe this QE-2 is not such a slam-dunk. (See ZH story on Bullard)
• The WSJ had a market story about Bullard’s comments but their big gun on
QE, Jon Hilsenrath, has been quiet. Should the press follow with the new
question mark on the timing and scope of QE2 we may have an October
surprise that is bigger than a SF-Texas series.
I started this with; “The 100% certain sure thing in the market today is that QE-2
will come on November 3rd and that it will be decisive in its scope.” If that
certainty factor falls to 50% the S&P is going to take a big dump. That possibility
was simply not in the print at the close.
The Unintended Consequences of QE2 Roche ‘It looks like the Fed is already
beginning to worry about the unintended consequences of QE2. In a speech
earlier this week Richard Fisher discussed an important consequence of QE. He
said:
In my darkest moments, I have begun to wonder if the monetary

accommodation we have already engineered might even be working
in the wrong places.
It certainly is working in the wrong places. While the Fed creates paper profits in
stocks and bonds QE appears to also be influencing the price of commodities.
Commodity prices have surged in recent weeks as the Fed has driven the dollar
lower. What’s so pernicious here is the margin compression that Gaius discussed
the other day. This is crucial because the margin recovery has been the single
most important component of the equity market recovery.
What’s so interesting here is that Ben Bernanke might actually be creating a
double headwind for the economy in the coming quarters. Not only is he reducing
margins for many corporations, but because quantitative easing is inherently
deflationary (because it replaces interest bearing assets with non-interest bearing
assets) it is not helping aggregate demand. From the perspective of a corporation
this means stagnant revenues and higher input costs. That will only increase the
reluctance to hire. Of course, the Fed thinks they can prop up particular markets
and generate a “wealth effect” that is unsupported by the underlying
fundamentals. Interestingly, in the long-run, Mr. Bernanke might be creating more
damage than he even understands. But at least someone at the Fed is beginning
to wonder if this strategy is viable.‘
Jim Rogers: “US will lose economic war” China has become the world’s fastest
growing economy, what can the US be taught from the Chinese as the US
economy continues to struggle? Jim Rogers, co-founder of the Quantum
Fund says that US citizens should save and invest their money as their
Chinese counter parts have. The Chinese are saving and investing an
average of 35% of their income, taking an age old US principle and using it
to their advantage.
Las Vegas Unemployment Rate Hits 15 Percent While unemployment statewide

remained unchanged in September, jobless numbers in Las Vegas rose to 15
percent, a new record.
Reid: ‘But For Me, We’d Be in World-Wide Depression’ … Wow! …’
Stimulus Swindle: Los Angeles Spent $70 Million in Stimulus Funds to Create
7.76 Jobs A new piece of evidence has emerged in the debate over the
effectiveness of President Obama’s 2009 stimulus package, and it’s not
good for Democrats.
Strapped UK to pay for EU’s ‘fraud, waste & mismanagement’? The European
Union is demanding an additional 900 million pounds from the UK. It comes
as the largest public spending cuts since the Second World War was
announced. Thousands of protestors took to the streets of London saying it
will condemn the UK to years of brutal unemployment. For more on the topic
RT talks to Robert Oulds – Director of think tank the Bruge Group.
Geithner’s Goal: Rebalanced World Economy Wall Street Journal | Treasury

Secretary Timothy Geithner said he would use weekend meetings of G-20
finance ministers to advance efforts to “rebalance” the world economy so it
is less reliant on U.S. consumers.
The Big Wall Street Banks Have Found A New Way To Strangle The American
People: Predatory Property Tax Collection The Economic Collapse | Today,
millions of American families are barely hanging on to their homes by their
fingernails.
Currency Wars: A Race to the Bottom of the Inflationary Barrel Ron Paul | Inflation
fears are heating up this week as Fed Chairman Ben Bernanke gave a
speech in Boston on Friday, causing further frantic flight into gold by those
fearful of the coming “quantitative easing” the Fed is set to deliver in
November.
Fannie Mae, Freddie Mac bailouts could hit $363 billion, report says The taxpayer
bailouts of housing finance giants Fannie Mae and Freddie Mac could cost
as much as $363 billion through 2013, according to government projections
released Thursday.
National / World
Democrats Behind Tea Party Cyber Attacks? Paul Joseph Watson | FreedomWorks
hack was “politically motivated,” launched day after Obama instructed
Pentagon to attack “cyberthreats” within U.S.
Democrats Behind Tea Party Cyber Attacks? Paul Joseph Watson | FreedomWorks
hack was “politically motivated,” launched day after Obama instructed
Pentagon to attack “cyberthreats” within U.S.
Alan Watt: The Neo-Eugenics War On Humanity Infowars.com | Alan Watt

continues to divulge his fascinating in-depth insights.
Obama Tells Pentagon to Attack “Cyberthreats” On American Soil Kurt Nimmo |

Government puts another nail in the coffin of Posse Comitatus.
documents.
Establishment Dispatches Clinton To Campaign Against Rand Paul The

Democratic establishment is pulling out the big guns in an all out effort to
prevent Rand Paul from becoming a Kentucky senator this November by
dispatching former president Bill Clinton to campaign for Paul’s opponent
Jack Conway on the eve of the election.
Obama Approval Rating Hits New All Time Low President Obama’s approval
ratings continue to plummet according to national surveys, with the latest
from Gallup showing a decline of more than two percentage points in the
last quarter alone.
Republican congressional candidate says violent overthrow of government is ‘on

the table’ Republican congressional candidate Stephen Broden stunned his
party Thursday, saying he would not rule out violent overthrow of the
government if elections did not produce a change in leadership.
Forced Abortion: Dream Of The Scientific Elite Today’s harrowing story about a
pregnant woman in China who was brutally beaten and abducted by state
goons before being forcibly injected with a drug to kill her unborn baby
serves as a stark reminder that the current White House science czar, John
P. Holdren, advocated the creation of a “planetary regime” that would carry
out similar draconian measures in America as part of the eugenicist zeal to
reduce world population.
French Senate Passes Controversial Pension Bill The French Senate has passed
a controversial pension reform bill, which has caused a series of strikes and
protests around France. The senators approved President Nicolas Sarkozy’s
plan to raise the retirement age from 60 to 62, and it could become law as
early as next week.
WikiLeaks promises ‘major announcement’ Saturday in Europe The WikiLeaks
website has promised a “major announcement” in Europe on Saturday, in a
message on its Twitter feed, amid speculation it will release thousands of
secret documents about the Iraq war.
France Introduces Petrol Rationing As Riots And Blockades Continue More than
a quarter of the country’s 12,500 petrol stations are dry and some of them
have now started limiting fill-ups to 30 litres for cars and 150 litres for
lorries.
‘White House seeks to remove Obama’ Press TV ‘A US analyst says some

officials in the White House and the administration are considering legal action to
remove Barack Obama from presidency. Oct 22, 2010 A US analyst says some
officials in the White House and the administration are considering legal action to
remove Barack Obama from presidency. “Right now, there is discussion in
Washington and within the government of using the 25th amendment to the US
Constitution to remove Obama from office,” Edward Spannaus from Executive
Intelligence Review said in an interview with Press TV on Friday. The amendment
allows for removing the president if he/she has incapacity either physically or
mentally. “In this case, Obama is mentally incapable of fulfilling the office of
president,” Spannaus went on to say. Referring to Obama’s plummeting
popularity, mostly due to the recent economic collapse in the US, Spannaus said,
“There is no way that his presidency could be salvaged at this point and it does
not really make any difference who wins the congressional elections.” “He was
not qualified to be the president in the first place. He was put in there precisely
because he would act as a puppet and they knew he would be a puppet for Wall
Street, for the London financiers and for the British,” Spannaus added. A recent
survey from Gallup has revealed that more than half of American voters would
not support the incumbent US president’s re-election.A recent survey from Gallup
has revealed that more than half of American voters would not support the re-
election of President Barack Obama.
Obama’s Finest Hour: Killing Innocent People For “Made-Up Crap” Floyd Empire
Burlesque Oct 22, 2010 If ever I am tempted by the siren songs of my tribal
past as a deep-fried, yellow-dawg Democrat, and begin to feel any faint,
atavistic stirrings of sympathy for the old gang, I simply think of things like
the scenario below, sketched last week by Johann Hari, and those wispy
ghosts of partisanship past go howling back to the depths:
Imagine if, an hour from now, a robot-plane swooped over your

house and blasted it to pieces. The plane has no pilot. It is controlled
with a joystick from 7,000 miles away, sent by the Pakistani military
to kill you. It blows up all the houses in your street, and so
barbecues your family and your neighbours until there is nothing left
to bury but a few charred slops. Why? They refuse to comment. They
don’t even admit the robot-planes belong to them. But they tell the
Pakistani newspapers back home it is because one of you was
planning to attack Pakistan. How do they know? Somebody told
them. Who? You don’t know, and there are no appeals against the
robot.Now imagine it doesn’t end there: these attacks are happening
every week somewhere in your country. They blow up funerals and
family dinners and children. The number of robot-planes in the sky is
increasing every week. You discover they are named “Predators”, or
“Reapers” – after the Grim Reaper. No matter how much you plead,
no matter how much you make it clear you are a peaceful civilian
getting on with your life, it won’t stop. What do you do? If there was
a group arguing that Pakistan was an evil nation that deserved to be
violently attacked, would you now start to listen?…[This] is in fact an
accurate description of life in much of Pakistan today, with the sides
flipped. The Predators and Reapers are being sent by Barack
Obama’s CIA, with the support of other Western governments, and
they killed more than 700 civilians in 2009 alone – 14 times the
number killed in the 7/7 attacks in London. The floods were seen as
an opportunity to increase the attacks, and last month saw the
largest number of robot-plane bombings ever: 22. Over the next
decade, spending on drones is set to increase by 700 per cent.
Friends, it’s very simple: if you support Barack Obama and the Democrats —
even if reluctantly, even if you’re just being all sophisticatedly super-savvy and
blogospherically strategic about it, playing the “long game” or eleven-
dimensional chess or what have you — you are supporting the outright murder of
innocent people who have never done anything against you or yours. You have
walked into a house, battered down the bedroom door, put the barrel of a gun
against the temple of a sleeping child, and pulled the trigger. That is what you are
supporting, that is what you are complicit in, that is what you yourself are doing.
Drudgereport: REPORTS: Illegals canvassing for votes...
Angle to Reid: Man up, man up, man up...
Vegas: Record 15% Unemployment...
Reid defends million-dollar RITZ-CARLTON condo...
Obama T-shirt serves as voting 'dress code' reminder ...
NOONAN: 'Tea Party' saved GOP from Bush...
PELOSI CHALLENGED IN SAN FRAN...
Republican candidate: Violent overthrow of govt 'on table'...
'Our nation founded on violence'...
GREATEST DATA LEAK IN MILITARY HISTORY!
Feds shut 6 banks in FL, GA, IL, KS; 138 bank failures this year...
WASHPOST: Black Panthers case taps deep racial divisions at Justice...
'BUT FOR ME, WE'D BE IN WORLD-WIDE DEPRESSION’ … Wow! … '...
Water on the Moon: A Billion Gallons! ...may bolster case for manned [military]
base [ May? Come on! … biggest boondoggle since wmd’s inIraq and the last fake appollo
video? … ]
Britain plans $131B in spending cuts by 2015 (Washington Post) [ Defacto

bankrupt america along with NATO war partners, just moving right along …
and into the abyss. France Unrest: Street battles in Lyon, blocked Marseille
airport, protests in Paris It’s another day of unrest in France, where
Marseille’s airport has been blocked by protesters and further
demonstrations are planned in Paris. It’s all part of the anger at proposals to
raise the retirement age from 60 to 62, which would still be one of the lowest
in Europe. UK Unions Threaten French-Style Riots In Backlash To
Draconian Austerity Measures Unions told the Government to brace itself for
French-style street protests last night after the Chancellor confirmed that
half a million public sector jobs will be axed.]
Treaty on weapons trafficking stays stalled (Washington Post ) [ No surprise there!

I strongly recommend the well done, well researched film, ‘Lord of War’,
which effectively captures in a relatively small amount of time the essential
theme of creating the conflict, strife, conditions, bogeymen, etc., (ie., Iran,
Iraq, Afghanistan, Mexico, etc.,) to create need for the lucrative and deadly
arms trade (lots of cash and bribes as well). Previous: Cartels beef up
presence in U.S. (Washington Post) [ I strongly recommend the entertaining,
albeit exaggerated for shock effects, films by the talented director Robert
Rodriguez, ‘Machete’ and ‘Once Upon a Time in Mexico’. The important point
in the films is the manipulation and interwoven money connections, pieces
of the action, bribes, etc. (see infra, RICO case, 10-15-10 letter to the FBI , (
perjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ). While I
assume he’s of Mexican-American descent, and only slightly biased as a
consequence, realize that a real life american story, names, etc., wouldn’t
get made / distributed. Those Cartels referenced in this article wouldn’t be
here without inside american help, very, very high up and quite officially
unofficial. ] When a major Mexican drug cartel opened a branch office in San
Diego, U.S. authorities tapped into their cellphones -- then listened, watched
and waited. ] ] The difficulty of passing the treaty in the United States offers
a lesson in the political sensitivities of taking even modest legal steps to
crack down on gun-smuggling to Mexico.
Crisis tests reform legislation (Washington Post) [ Well, there must be a will for
there to be a way; and, the lack of prosecutions of the wall street frauds
despite campaign promises is telling; viz., no real will ( the amounts stolen
by the wall street frauds would pay for all mortgages in america and then
some, just to emphasize the magnitude of their fraud accomplis). ]Recent
foreclosure problems challenge financial regulators to respond more
cohesively and aggressively to a problem than they did to the subprime
crisis three years ago.
Fannie, Freddie bailout is likely to rise to $154B (Washington Post) [ Riiiiight!

They’re so good at projections; reasonable minds could / would differ … Fannie
Mae, Freddie Mac bailouts could hit $363 billion, report says
prisonplanet.com The taxpayer bailouts of housing finance giants Fannie
Mae and Freddie Mac could cost as much as $363 billion through 2013,
according to government projections released Thursday. ] In addition to the
existing price tag of $135B, the aid is likely to cost taxpayers extra $19B and
may cost as much as $124B more if the economy starts shrinking again,
according to a government projection.
U.S. pushes currency accord (Washington Post) [ Then what will be fraudulent
wall street’s excuse for the air-ball bubble stocks. Come on! … Get real! They
haven’t the slightest clue what they’re doing. The October Philadelphia Fed Index
hit 1.0, (50%) below the 1.5 that had been widely forecast. Meanwhile, Leading
Indicators for September increased 0.3%, as expected (but based upon the ‘stock
prices floating on air and b*** s***’ component of same). This is an especially
currency manipulations / translations to froth paper stocks will end quite badly as
in last crash)! This is a global depression. This is a secular bear market in a
global depression. The past up moves were manipulated bull (s***) cycles (at
best) in a secular bear market. This has been a typically manipulated bubble as
has preceded the prior crashes with great regularity that the wall street frauds
and insiders commission and sell into. This is a typical wall street ‘programmed
computerized high-frequency churn and earn pass the hot potato scam / fraud as
in prior crashes’. This national decline, economic and otherwise, will not end until
justice is served and the wall street frauds et als are criminally prosecuted, jailed,
fined, and disgorgement imposed.The Stock Market's Long Decline Has Begun
Smith ‘The Fed's campaign to boost the risk-trade in equities by destroying the
dollar has reached its limits. Now gravity will take hold as stocks enter a Long
Decline.On Monday, Daily Finance published my article Is the Market Ready to
Roll Over? These Signs Say Yes. ] The move is conceived largely as a new tack
in a dispute over China's policies, but it is poised to become a battle for the
Group of 20 major economic powers.
Wednesdays Rebound Does Not Alter My Market Outlook Suttmeier The yield on
the 10-Year note is between my monthly pivot at 2.555 and my quarterly and
semiannual risky levels at 2.265 and 2.249. Gold is trading around my monthly
pivot at $1343.7 between my quarterly value level at $1306.4 and weekly risky
level at $1373.6. Crude oil is just above my weekly pivot at $82.38 with
semiannual and monthly risky levels at $83.94 and $84.74. The euro is trying to
rally to this week’s risky level at 1.4074. The major equity averages remain
overbought with overhead risky levels. For the Dow my weekly risky level is
11,229, my annual risky level is 11,235, and my semiannual risky level is 11,296. I
answer readers’ questions on the Dow Theory Buy Signal. I comment on the
Fed’s Beige Book.
10-Year Note – (2.475) Weekly, annual and annual value levels are 2.620, 2.813 and
2.999 with monthly and daily pivots at 2.555 and 2.539, and quarterly and semiannual
risky levels at 2.265 and 2.249. click to enlarge [chart] Courtesy of Thomson / Reuters
Comex Gold – ($1344.2) Quarterly, semiannual and annual value levels are $1306.4,
$1260.8, $1218.7 and $1115.2 with my monthly pivot at $1343.7, and daily and weekly
risky levels at $1369.0 and $1373.6. [chart] Courtesy of Thomson / Reuters
Nymex Crude Oil – ($82.54) My annual value level is $77.05 with daily and weekly
pivots at $81.41 and $82.38, and semiannual and monthly risky levels at $83.94 and
$84.74. [chart] Courtesy of Thomson / Reuters
The Euro – (1.3964) My quarterly value level is 1.3318 with daily and weekly risky
levels at 1.3948 and 1.4060. My monthly value level is 1.2342 with semiannual risky
level at 1.4733. [chart] Courtesy of Thomson / Reuters
Daily Dow: (11,108) Monthly, semiannual, annual and quarterly value levels are
10,857, 10,558, 10,379 and 8,523 with daily, weekly, annual and semiannual risky
levels at 11,132, 11,229, 11,235, 11,290 and 11,296. My annual risky level at 11,235
was tested at the April 26th high of 11,258.01. [chart] Courtesy of Thomson / Reuters
Reader Questions about Dow Theory
1. Do you think the Dow will close above 11,205.03 triggering a Dow Theory Buy
Signal? First of all Dow Transports must also close above 4,806.1 to
confirm a Dow Theory Buy. I am not betting that such a signal will occur, as my
longer term forecast is “Dow 8,500 before Dow 11,500”.
2. If the get a Dow Theory Buy signal what is the upside target? If the Dow does
not have a monthly close above 11,296 the Dow Theory Buy could become
a false signal. I do not have a specific target above 11,296 as there are no
higher risky levels. This happens when a market goes parabolic, in stocks called
a “melt-up” as all shorts are forced to cover.
3. What would negate a Dow Theory Buy Signal? I will track the weekly chart as
the Dow is overbought. A weekly close below the five-week modified
moving average with declining MOJO would be the sell signal. The five-
week modified moving average is at 10,727 this week and will move higher each
week.
IN SUM, I STILL FORECAST “DOW 8,500 BEFORE DOW 11,500” …
The Beige Book Reflects Modest Economic Growth, but Let’s Focus on the
Headwinds
• Housing markets remain weak with most Districts reporting sales below year-ago
levels. Reports on prices suggested stability, however. Conditions in the
commercial real estate sector were subdued, and construction was expected to
remain weak. Lending activity was stable in most Districts.
• Bernanke is worried about deflation but that’s not evident in the Beige
Book. Input costs, most notably for agricultural commodities and industrial
metals, rose further. Shipping rates increased, and retailers in some Districts
noted rising wholesale prices.
• Demand for transportation services appears to have slowed.
What’s Ahead for the Foreclosure Mess?
• The big banks are saying their paperwork is accurate so foreclosures should
commence soon.
• The attorneys general in all states are investigating whether lenders violated
state laws.
• Evicted homeowners are hiring lawyers for suits against the major lenders.
• Judges will scrutinize foreclosure documents with skepticism.
• Congress will hold hearings.
• All of this remains the fall-out of the Subprime Crisis.
It's Time to Take Some Profits
Are the Markets Headed for a Correction? Babak ‘The stock market has been in
rally mode since the start of September. Since then the S&P 500 has gained 13%,
very close to the ~15% it gained from the early February 2010 lows until mid-April
2010. With that has come a few breadth signals that the rally is getting tired and
may need to rest or retrace before continuing.Earlier I mentioned the overbought
breadth reading from the percentage of issues in the S&P 500 trading above their
50 day moving average. This was the highest since April’s top. That measure has
backed away slightly from the peak (93%) and it now at 89%.But other measures
of market internals are very elevated. For example, the daily advance decline
statistics are very high and the McClellan Summation index, which is based on
that raw data is reaching levels we haven’t seen since early May 2010, as the
market was rolling over: Click to see a larger chart in a new tab: (chart) Usually
when the McClellan Summation index peaks around this level, the stock market
either corrects or treads water to digest its gains. The exception is when we have
a very high velocity momentum market coming out of an incredibly oversold bear
market condition. We saw this twice in the past 10 years: first in 2003 and then in
2009. I’ve drawn circles around those instances to mark them better. With those
exceptions, however, the McClellan Summation index is a good measure of how
‘tired’ breadth is. By the way, I use the Nasdaq McClellan Summation index
instead of the NYSE variation due to the pollution of non-operating company
issues trading on the big board which skew the breadth data significantly. Click
to see a larger chart in a new tab: (chart) The other breadth measure I refer to
repeatedly is the analysis of the number of new highs relative to new lows. The
High-Low index is basically a ratio of the number of new 52 week highs divided
by the number of new 52 week lows added to the new highs. Since it can be
rather jittery, I’ve smoothed it with a 10 day (or 2 trading week) moving average.
You can see the same two periods of extreme momentum when the needle got
stuck almost consistently to 90-100%. Excluding those, a reading this high
corresponds to a market top: Click to see a larger chart in a new tab: (chart)
Fibonacci Target Moving away from market internals, we can take a look at the
charts based on simple resistance and support. With such a rally in place, it is
normal for the market to consolidate the gains before moving forward, especially
with the April highs so close and acting as resistance. (chart) A 61.8% Fibonacci
retracement between the low in early July (1010.91) to the ‘top’ from Monday
(1185.53) gives a target area at 1118. This also dovetails nicely with the previous
resistance which pushed back the S&P 500 in mid June and early August. So as a
previous resistance level, this is a natural support area for the market to retest.’
Fundamentals Always Matter The Housing Time Bomb ‘What a wacky couple
days in the market eh? Whoa! Volatility is back! None of this helps from a
confidence standpoint of course. The dollar trade the past few days was
absolutely ridiculous (click to enlarge): [chart] Crazy isn't it? Moves like this on
the dollar just are not supposed to happen. Stocks and other commodities caught
fire once the dollar started collapsing yesterday morning. We sold off later in the
day to close up around 1%. What was interesting yesterday was watching the
bond market. Take a look at the 10 year (click to enlarge): [chart] As you can see,
bonds actually moved higher despite the sharp rally in stocks. We should have
seen bonds move in the other direction as the market soared higher. This pretty
much tells you that there wasn't much conviction behind the rally. Most investors
remain scared and prefer to sit in bonds. The move higher was all about the
falling dollar yesterday. Why this is a good thing for stocks is beyond me. I also
think that all of the money the Fed is creating is one of the reasons why we are
seeing both stocks and bonds rising at the same time. We had another POMO
from the Fed yesterday, much like we saw on Monday so yesterday's move makes
a little more sense from a "funny money" standpoint. Fundamentally of course
none of this makes any sense, but we all know that's have gone out the window
for the time being. Just keep one thing in the back of your mind: The
fundamentals always matter. Just ask anyone that leveraged themselves into the
tech bubble. Let me finish up with a great video of Jim Rogers aired on CNBC
Asia last night. Jim hits the cover off the ball as he slams CNBC, and rips into the
artificial book values of the banks that the analysts feed the bulltards on
Bubblevision. Enjoy!
Investor Bullishness, Low Fear Level Hint At Market Top Harding As all
investors and traders are aware, investor sentiment is a ‘contrary’ indicator,
always at high levels of bullishness and complacency at market tops, and at
extreme levels of bearishness and fear at market bottoms. Because sentiment
can remain at extreme levels for quite some time it cannot be used to time the
market, but when it reaches those extremes it does serve as a warning to keep an
eye on other conditions and signals. The results of the weekly member poll of by
the American Association of Individual Investors (AAII) were released last night,
and showed bullishness at 49.6% and bearishness at 25.2%, for a spread of 24.4.
The poll reached 50.9% bullish a month ago, so it remains in its warning zone
around 50% bullish. It reached only 48.5% bullish, 29.7% bearish at the April top
this year.The VIX Index (aka the Fear Index) is also showing a low level of fear
(high level of bullishness and complacency), bouncing around 20, in the area
associated with rally tops since the last bull market ended in 2007, as marked by
the vertical red lines in the chart below. (Chart) And the October 12 Investors
Intelligence Sentiment poll showed 47.2% bulls, only 22.5% bears. So, it might be
wise to at least be aware of the sentiment situation at this point, particularly with
the Dow’s internal strength, as measured by its Relative Strength Index, in
negative divergence with the Dow’s last high (its RSI made lower highs). That was
also the situation at the tops of the previous rallies of this year, as marked by the
short-red lines on the chart. (Chart)
Initial Claims Fall More Than Expected (Two weeks to election – desperation
mode) NEW YORK (TheStreet) – ‘The number of Americans filing unemployment
claims for the first time fell more than expected last week according to a labor
department report released early Thursday.
More from Shanthi Venkataraman
Dow Posts Modest Gain Amid Choppy Trading

Will QE2 Work?
Economic Indicators Up in September
Market Activity
• SPDR S&P 500 ETF| SPY

• SPDR Dow Jones Indus Avg| DIA
• PowerShares QQQ Trust 1| QQQQ
Initial weekly claims fell by 23,000 to 452,000 in the week ended Oct. 16, from the
previous week. But the magnitude of the drop was exaggerated by the Labor
Department's upward revision of the previous week's figure to 475,000 from
462,000. Still, analysts were expecting initial claims to drop by 7,000 to 452,000,
according to consensus estimates from Briefing.com…’
Geithner’s Goal: Rebalanced World Economy Wall Street Journal | Treasury

Secretary Timothy Geithner said he would use weekend meetings of G-20
finance ministers to advance efforts to “rebalance” the world economy so it
is less reliant on U.S. consumers.
The Big Wall Street Banks Have Found A New Way To Strangle The American
People: Predatory Property Tax Collection The Economic Collapse | Today,
millions of American families are barely hanging on to their homes by their
fingernails.
Currency Wars: A Race to the Bottom of the Inflationary Barrel Ron Paul |
Inflation fears are heating up this week as Fed Chairman Ben Bernanke gave
a speech in Boston on Friday, causing further frantic flight into gold by
those fearful of the coming “quantitative easing” the Fed is set to deliver in
November.
Fannie Mae, Freddie Mac bailouts could hit $363 billion, report says The taxpayer
bailouts of housing finance giants Fannie Mae and Freddie Mac could cost
as much as $363 billion through 2013, according to government projections
released Thursday.
While Americans’ Taxes Are Jacked Up, Google Pays Just 2.4% Google Inc. cut
its taxes by $3.1 billion in the last three years using a technique that moves
most of its foreign profits through Ireland and the Netherlands to Bermuda.
While UK Hits Public With Massive Austerity Measures, Government Sends Extra
£900 Million To EU The European Parliament voted through a budget rise
yesterday that will cost Britain an extra £900 million next year – on the day
George Osborne announced deep cuts to public spending.
We See Totally Surreal Markets As we write, the US dollar is in the process of

trying to find at least a temporary bottom at 76.50 and to launch a
countertrend rally. We would think a rally back to 80 is achievable, but we do
not believe it’s sustainable – only some stabilization through the election.
Japan drew a line in the sand at 82 and finished last Friday trading at 81.37.
That does not smack of success, but we see improvement over the next two
weeks.
SocGen’s Albert Edwards: The U.S. Public Is About To Revolt Albert Edwards of
Societe Generale thinks U.S. citizens are on the brink of a political revolt,
based on a declining standard of living brought on by an inefficient
economic relationship with China.
National / World
Deathbed Globalist “Spills Gut” On Plan to Destroy America Kurt Nimmo | Pastor
Lindsey Williams provided further details on the ongoing plan by the global
elite to consolidate financial power and usher in world government.
States of Emergency Cassandra Anderson | Regionalism is a trick that uses re-

zoning to establish new jurisdictional authority.
Ratigan Slams Tea Party Borg Hive Kurt Nimmo | Meet the new boss. Same as the
old boss.
Obama’s Approval Rating at New Low in Most Recent Quarter Barack Obama
averaged 44.7% job approval during the seventh quarter of his presidency.
His average approval rating has declined each quarter since he took office,
falling by more than two percentage points in the most recent quarter to
establish a new low.
9/11 Mastermind Invited to Pentagon Paul Joseph Watson | American-born cleric

who had key role in Fort Hood, Christmas Day, and Times Square attacks
met with US officials months after inspiring alleged 9/11 hijackers.
We See Totally Surreal Markets Bob Chapman | We see totally surreal markets
because the US government has been manipulating them under the fascist
model for years.
Rand Paul Maintains Lead In Kentucky Despite Continued Smears Rand Paul has
maintained his lead in the race for the Kentucky Senate seat over political
rival Jack Conway, despite Conway’s attempts to smear him in campaign
ads and corporate media hit pieces that continue to promulgate rumours
and outright lies about the libertarian candidate.
Al-Qaeda Is A Front Group For The US Military-Industrial Complex American-born

Al-Qaeda terror leader Anwar Al-Awlaki, who met with Pentagon officials
months after 9/11, is by no means the only patsy handler the Central
Intelligence Agency has used over the years to oversee false flag attacks in
America and around the world. In fact, just about every major terror attack
has been run by an operative with direct ties to the US military-industrial
complex.
Ratigan Slams Tea Party Borg Hive Less than two weeks out from the dog and
pony show called mid-term elections and Dylan Ratigan wants to know what
happened to the Tea Party. He correctly observes that the hitherto
grassroots movement was sold down the river and absorbed by the
Republican Party.
John Taylor Parallels Current Situation To World War 2, Predicts Global Debt
Structure Could Collapse This war will not be fought for territory, but for
markets and wealth, and when tariff walls are raised the destruction of
livelihoods and property will be almost as dramatic as in the old fashioned
shooting wars. With the loss of economic value, the global debt structure
must collapse and entitlement promises will not survive.
France Grinds To Literal Halt As Authorities Impose Fuel Consumption

Restrictions The strike that was supposed to be over two weeks ago refuses
to go away. In the meantime, we get the following headline: “Local French
Authorities say have imposed fuel consumption restrictions for the public in
Normandy due to shortages.”
Al-Qaeda Mastermind Invited To Pentagon After 9/11 Al-Qaeda terror mastermind

Anwar Al-Awlaki, the man who helped plot the aborted Christmas Day
bombing, the Fort Hood shooting, the Times Square bombing attempt, and
who also preached to the alleged September 11 hijackers, dined at the
Pentagon just months after 9/11 documents obtained by Fox News show.
France Unrest: Street battles in Lyon, blocked Marseille airport, protests in Paris
It’s another day of unrest in France, where Marseille’s airport has been
blocked by protesters and further demonstrations are planned in Paris. It’s
all part of the anger at proposals to raise the retirement age from 60 to 62,
which would still be one of the lowest in Europe.
UK Unions Threaten French-Style Riots In Backlash To Draconian Austerity

Measures Unions told the Government to brace itself for French-style street
protests last night after the Chancellor confirmed that half a million public
sector jobs will be axed.
Bill Clinton ‘lost vital White House nuclear codes’ For several months during Bill
Clinton’s administration, a former top military officer says the White House
lost the card with a set of numbers for opening the briefcase containing the
codes for a nuclear attack.
French Union Calls for ‘Massive’ Strikes Next Week A French union leader called
on Thursday for further “massive” strike action next week against pension
reforms that have triggered the biggest and most sustained anti-austerity
protests in Europe.
US foes seek ‘new world order’ Venezuela and Iran denounce US imperialism as
they flex their economic muscles by signing a raft of energy deals.
SocGen’s Albert Edwards: The U.S. Public Is About To Revolt Albert Edwards of
Societe Generale thinks U.S. citizens are on the brink of a political revolt,
based on a declining standard of living brought on by an inefficient
economic relationship with China.
Drudgereport: 264 HOURS: Key Senate Battles Tighten...

NOONAN: 'Tea party' saved GOP from Bush...
Axelrod Suggests Dem Upset: 'Stay Up For The Full Night'...
ELECTION MONTH: Millions of early voters...
GALLUP: Obama's Approval Rating at New Low...
Wall St mogul picked for State Dept post...
FANNIE/GOLDMAN lobbyist tapped as National Security Advisor… (Wow!)...
FANNIE, FREDDIE bailout could double...
French union calls for massive new pension protest...
DAY 9: Chaos as airports are blockaded...
'Birthright' of privileges...
Fuel short as port, refinery strikes drag on...
Sarkozy lashes out...
Connecticut law firm opens drive-thru window … [ This doesn’t surprise me a bit
based upon experience with such connecticut liars as coan et als, etc. ] ...
SHOWDOWN: French Strikes Intensify...
BROKE UK SLASHES 500,000 GOV'T JOBS...
SHOWDOWN: French Strikes Grow ...
Tourists warned to stay away as violence spirals...
'Birthright' of privileges...
Will Americans Follow Mass Civil Unrest?
Will the Federal Reserve Cause a Civil War?
NJ Toll Worker Earns $321,985... [Such is life in the multi-ethnic mob-infested /
controlled, pervasively corrupt, garbage state (ny, northeast, dc metro/ va, cal,
not far behind) … could you imagine the figures for pols / judges, etc., if bribes
and drug money, etc., were included. ] ‘…It took place as tolls were being
increased. The biggest expense uncovered in the audit was $30 million in
unjustified bonuses to employees and management in 2008 and 2009 without
consideration of performance…’
Sarkozy vows crack down...
DAY 6: Violent turn...
Thousands protest against looming cuts in London...
SHOWDOWN: China halting key minerals to USA...
ANGER...
HAS THE FED RUN OUT OF IDEAS? [ Quite some time ago, actually. ]
THE 'INFLATION' OPTION...
Dollar Declines for Fifth Week...
Support for Afghanistan war at all-time low...
17 SOLDIERS KILLED IN PAST 3 DAYS...
Limbaugh: Obama looks 'demonic' in new photos … and limbaugh knows
demonic, himself and relative wobama ... [Obama Distant Cousins with Palin,
Limbaugh, Bush | CNSnews.com Obama Distant Cousins with Palin, Limbaugh,
Bush. Obama's Related to Palin. Wednesday, October 13, 2010. By Jocelyn
Noveck, Associated Press ... www.cnsnews.com/news/.../obama-distant-cousins-
palin-limbaugh-bushes (wobama, palin, limbaugh, bush distant cousins … I knew
there were some dark secrets there … hillbilly heroin, etc.. – Wow! Talk about the
nation-declining dangers of inbreeding! Poor defacto bankrupt, pervasively
corrupt america never had a chance! ) ]
ABCNEWS: 63 Dem House Seats in 'Serious Danger'...
Barone: Dems find careers threatened by ObamaCare votes...
GALLUP: Unemployment at 10.0% in Mid-October...
Fed survey finds economy continues to rise modestly (Washington Post) [ It’s
truly a pleasure to see Mr. Irwin cured of the ‘perpetual glass-half-full
syndrome’ , even if somewhat tepidly so, and particularly with but two weeks
to election-time what would we expect as Mr. Irwin reminds us, ‘That
conclusion contrasted with that of the previous beige book, released in early
September, which reported "widespread signs of deceleration compared
with previous periods."…’] Data contrast with that of September's "beige
book," which said "widespread signs of deceleration compared with
previous periods." [See infra, This is an especially great opportunity to sell /
take profits (these lower dollar, hyperinflationary currency manipulations /
translations to froth paper stocks will end quite badly as in last crash)! This
is a global depression. This is a secular bear market in a global depression.
The past up moves were manipulated bull (s***) cycles (at best) in a secular
bear market. This has been a typically manipulated bubble as has preceded
the prior crashes with great regularity that the wall street frauds and insiders
commission and sell into. This is a typical wall street ‘programmed
computerized high-frequency churn and earn pass the hot potato scam /
fraud as in prior crashes’. This national decline, economic and otherwise,
will not end until justice is served and the wall street frauds et als are
criminally prosecuted, jailed, fined, and disgorgement imposed.The Stock
Market's Long Decline Has Begun Smith ‘The Fed's campaign to boost the
risk-trade in equities by destroying the dollar has reached its limits. Now
gravity will take hold as stocks enter a Long Decline.On Monday, Daily
Finance published my article Is the Market Ready to Roll Over? These Signs
Say Yes.
DoD plans weapons sale to Saudi Arabia (Washington Post ) [ I strongly

recommend the well done, well researched film, ‘Lord of War’, which
effectively captures in a relatively small amount of time the essential theme
of creating the conflict, strife, conditions, bogeymen, etc., (ie., Iran, Iraq,
Afghanistan, etc.,) to create need for the lucrative and deadly arms trade
(lots of cash and bribes as well). ] The proposed $60B sale will be the
largest arms deal to another country in U.S. history if the sale goes through
and all purchases are made
British budget cuts to include nearly 500,000 job losses (Washington Post)
Historic $131M cuts, aimed at reducing the country's deficit, will cost the
public sector half a million jobs. [infowars.com / prisonplanet.com - Broke
UK Slashes 500,000 Government Jobs [ I highly recommend the prescient
film, ‘V for Vendetta’ (underplayed to audiences here and thar’), which, in
portraying the Orwellian English society of a not too distant future (the
adoption of nazi-like ways is not lost on the fact that the so-called ‘royal
family’ are Germans, and don’t forget the queen’s gift to wobama of Orwell’s
‘1984’) , factors in the fait accomplis of american civil war which has begun
and is inevitable in light of the pervasive greed, corruption, and
incompetence of american leadership, publicly and privately, as well as
inherent criminality, government / non-government. ] Up to 500,000 public
sector jobs could go by 2014-15 as a result of the cuts programme,
according to the Office for Budgetary Responsibility. Time Magazine:
Prospect Of Civil War In U.S. “Doesn’t Seem That Far Fetched” With
protesters in France entering a seventh day of strikes and demonstrations
against draconian austerity measures, many political observers in the U.S.
are now wondering how long it will be before similar scenes unfold on
American streets, with even Time Magazine now conceding that the prospect
of a civil war in the States “doesn’t seem that far fetched”.
Foreclosure freeze could put security clearances at risk (Washington Post) [ How
‘bout solving the problem by just eliminating the superfluous, over-priced
(including lifetime appointees) federal jobs which are fraught with corruption
of all kinds in addition to being boondoggles for the incompetent! ]
Activists read between the lines on paperwork (Washington Post) [ True enough!
Attention to problems with proper title for foreclosure had already shown up
in some courts and had been referenced here on this site in the context of
the wall street fraud / debacle in re-bundling (for re-commissioning) the
worthless toxic paper over and over again …see also, ie., Foreclosure Expert
Confirms Mortgages Pledged Multiple Times, Not Actually Securitized,
Document Problem Is Really a System of “Push-Button Fraud”
infowars.com / prisonplanet.com -Yesterday, I showed that mortgages were
fraudulently pledged to multiple buyers at the same time. ]
This is an especially great opportunity to sell / take profits (these lower dollar,
hyperinflationary currency manipulations / translations to froth paper stocks
will end quite badly as in last crash)! This is a global depression. This is a
secular bear market in a global depression. The past up moves were
manipulated bull (s***) cycles (at best) in a secular bear market. This has
been a typically manipulated bubble as has preceded the prior crashes with
great regularity that the wall street frauds and insiders commission and sell
into. This is a typical wall street ‘programmed computerized high-frequency
churn and earn pass the hot potato scam / fraud as in prior crashes’. This
national decline, economic and otherwise, will not end until justice is served
and the wall street frauds et als are criminally prosecuted, jailed, fined, and
disgorgement imposed.
The Stock Market's Long Decline Has Begun Smith ‘The Fed's campaign to boost
the risk-trade in equities by destroying the dollar has reached its limits. Now gravity will
take hold as stocks enter a Long Decline.On Monday, Daily Finance published my
article Is the Market Ready to Roll Over? These Signs Say Yes. On Tuesday,
October 19, the market did roll over.Is this merely a brief hiccup on the way to S&P500
1,500 and Dow 15,000, or the first stages in a Long Decline? Here is the evidence to
support the idea that stocks are entering a Long Decline.Back on October 8 I
looked at some of these issues in Look Out Below (I've got a bad feeling about this).As
always, please note this is not investment advice, it is merely the musings of an
amateur observer; please review the HUGE GIANT BIG FAT DISCLAIMER below.First
up, the U.S. dollar, which the Fed has been destroying to prop up equities before the
election: (Chart) Alas, there is pushback from various forces against this destruction of
the dollar, and as the dollar climbs then the see-saw tips and equities decline. Those
predicting the continued destruction of the dollar see a double-top pattern suggesting
"the top is in;" I see a long-term uptrend line and a line of resistance around 90 that will
eventually be broken to the upside. Time will tell who is right, the dollar Bears or the
dollar Bulls. Mr. VIX is waving the yellow flag of "crash ahead." Complacency in the
face of sobering financial realities is not just unreal but completely deranged. To note
but a few:
1. A Eurozone debt crisis which has not been resolved, despite the propaganda.
2. A massive credit/real estate bubble in China which will burst, just like every other
bubble in history, despite the many voices claiming "there is no bubble in Chinese real
estate."
3. A foreclosure/MBS/bank insolvency structural crisis in the U.S. which has barely

started.
Note that the VIX is marking out a long-term uptrend of higher lows, meaning increasing
volatility is the backdrop against which the market acts out its various dramatics. (Chart)
The broad-based S&P 500 (SPX) is looking toppy and vulnerable on the weekly
chart. Note the declining volume as retail investors continue pulling tens of billions of
dollars out of the pump-and-dump charade known as the U.S. stock market. Also note
the bearish cross of the 20-day MA dipping below the 50-day MA, signaling the start of
a downtrend, and the weakening MACD trend. Kissing the resistance of the 200-day
moving average and then rolling over is a classic market move. (Chart) Beneath the
new high notched by the NADAQ 100 (NDX) we see marked weakness.Now that
Apple has rolled over, then who's left to keep the tech-heavy NDX afloat? Google
(GOOG), Amazon (AMZN) and Priceline (PCLN)? Three companies out of 100 is a very
narrow market, and one vulnerable to just the sort of rollover we are now witnessing.
(Chart) The other "market leader" sector, the financials, are running a high fever.
Bogus "earnings" from the money-center banks (reduce your reserves against losses by
$6 billion and surprise, you "booked a profit" on paper) have lifted the financial ETF XLF
off the crumbling edge of meltdown, but at some point the flag/wedge pattern here will
break big up or down. Does anyone with skin in the game seriously think banks are
poised to reap vast new profits? Really? From where? Enough to offset the tens of
billions they will be losing as the MBS/foreclosure fraud bills come due? (Chart) There is
very little support in this chart once it breaks below $12.50: next stop, $7.50 and then
$5. Disclosure: I am short the XLF via puts and long FAZ. HUGE GIANT BIG FAT
DISCLAIMER: Nothing on this site should be construed as investment advice or
guidance. It is not intended as investment advice or guidance, nor is it offered as such.
It is solely the opinion of the writer, who is NOT an investment counselor/professional.
All the content of this website is solely an expression of his personal interests and is
posted as free-of-charge opinion and commentary. If you seek investment advice,
consult a registered, qualified investment counselor (As with any other professional
service, confirm their track record and referrals).’
We Are Heading Into a Hyperinflationary Storm? Summers ‘In the last month and
a half, stocks have COMPLETELY returned to the atmosphere of March-April
2010: an atmosphere in which stocks are overbought, overstretched, and yet
KEEP rallying. [chart] As you can see, the daily RSI has just touched
“overbought” status at 70. From a strictly technical standpoint, the next lines of
resistance are 1,180, then 1,205 on the S&P 500. We’ve now got layers upon
layers of support as well: [chart] Most market analysts would look at this set-up
and say that we’re in a new bull market. I do not think that is the case. Instead, I
think the market is discounting major inflation and possibly hyperinflation.
Indeed, if stocks are overbought and overextended, their performance is nothing
compared to that of Gold: [chart] As you can see, the precious metal has erupted
higher since mid-August. As I write this, bullion is up 23% since March 2010.
Compare this to the S&P 500’s performance of 1.3% over the same time period,
and it’s clear which asset class is the one to own. Indeed, priced in Gold, stocks
have done nothing since April. [chart] This final chart is key to understanding
what’s happening in the markets. In plain terms, stocks are NOT creating wealth,
they are rallying based on Dollar devaluation, If you price them in non-paper
currency (Gold), they are LOSING purchasing power. This is also clear when you
compare the S&P 500’s performance to that of the US Dollar over the last few
months. [chart] As you can see, we have a near perfect inverse correlation here,
with stocks rallying as the US Dollar falls. With that in mind, we need to focus on
the US currency, since its drop is what’s fueling this rampant speculation in
stocks and commodities. [chart] The US Dollar is now oversold and nearing its
multi-year trendline. If we DO NOT bounce here, then the next line of support is at
74. After that, it’s the 2008 low (also the 20 year low) of 71. I have to be blunt here:
if the US Dollar DOES NOT bounce soon, a hyper-inflationary scenario is
INCREASINGLY likely in the US. Indeed on a weekly basis a break down past 74
on the US Dollar would trigger a MASSIVE Head and Shoulders pattern which has
a downside target of 40 or so (roughly 50% lower than where the US Dollar is
today). If this collapse were to occur, you would see hyperinflation erupt in the
US similar to that of Weimar Germany. Precious metals would erupt higher and
the US Dollar would no longer be the reserve currency of the world. [chart]
What’s truly worrisome is that the Fed is hell bent on enacting the exact same
policies that have created the Dollar collapse (and the rally in stocks) over the
last few months, namely, additional Permanent Open Market Operations (POMO)
ramp jobs. The name sounds clever, but it really just consists of the Fed buying
US debt from the large private banks, which in turn take the Fed’s money and buy
stocks. Indeed, the Fed just announced it will be monetizing an additional $32
billion worth of US debt in the next few weeks. The schedule for these ramp jobs
is as follows:
-October 15:
-October 18:
-October 20:-
-October 22:
-October 26:
-October 28:
-November 1:
-November 4:
-November 8:
In plain terms, the Fed is going to keep doing what it’s been doing: trashing the
US Dollar to pump stocks. And it’s going to do this to the tune of some $10 billion
per week over the next month. Thus, as ridiculous as it sounds, the stocks up/ US
Dollar down trend of the last two months is likely to continue into early
November. But if the US Dollar doesn’t bounce soon and start rallying with force,
we’re heading into a VERY nasty period. Disclosure: None’
Markets Thrust Headlong Into the Maelstrom of Correction Now that Apple (AAPL)
earnings have come and gone, the market has likely commenced its topping process
and investors should expect choppy sessions ahead. Tops come in two forms. Markets
either set a conclusive top, which is followed by 10-15 sessions of straight down (much
like we saw in late June), or they tend to consolidate through a series of huge up and
down moves (like we saw in January, April and July). Given the velocity of this move up,
the bulls will simply not give up that easily. This 170-point whacking will be swiftly
answered by the bulls. But don't get too complacent or think that we're headed much
higher from here as we limp into the mid-term elections and QE2. We'll see a good fight
from the bulls, much like we did for 10 sessions before topping in late April. But the
bears will win this battle and we'll get a much needed correction. It's healthy for the
markets after a move like we've had. Yet, unlike these past few corrections since April,
this correction could very likely present us with a good buying opportunity. In fact, I think
that this correction could be the last we'll see in a very long time. What I suspect will
happen is that we'll see a very severe sell-off followed by another 2009-type leg up in
the markets. There's a very large number of reasons why we're set to sell-off. But
seeing as how the vast majority (>99%) of market participants simply misconstrue the
difference between the weight of evidence and conclusion, I won't be surprised to see
the idiocy that usually comes with the writing of these types of articles. Yet, because I
like to take on tasks which are obviously futile, I'll give it a shot nonetheless. Here are
the reasons why we're probably going to see a significant sell-off very shortly, if we
haven't started already. The vast majority of these reasons come by way of Cobra's
Market View. I'm just summarizing what he has already said over the past few weeks.
But the evidence has now gotten overwhelmingly bearish.
1. Commercial Hedges are far too net short the NASDAQ-100. Whenever commercial
traders get this short the NDX, there is a very high likelihood for a correction. And
seeing as how the NASDAQ led this move higher; as goes the NASDAQ-100, so goes
the market. Commercial hedgers took record short positions in October. More than
double what we saw ahead of the 2008 top. This chart is courtesy of SentimentTrader
and annotations are courtesy of Cobra's Market View. See here.
2. The AAII Bull Ratio (4-week average) is way too high. There's a very strong
correlation between market tops and bullish sentiment getting over-extended. Notice the
strong correlation between market tops and extreme levels in AAII (click). Again, this
chart is courtesy of SentimentTrader, the find and annotations courtesy of Cobra's
Market View.
3. Too many Reversals. Peter (Yong) Pan, the author of Cobra's Market View, noticed
a strong correlation between market tops and multiple reversal days. We've had far too
many reversal days now. In fact, this is the highest number of reversal days recorded
for any rally without a correction since 2008. Good game? We've had 4 actual bearish
reversals into the red and 8 or more reversals that while didn't close red, were deep
reversals nonetheless. Again, notice the correlation between tops and reversals.
4. Institutional selling divergence from the market getting high. Though the market
continued to rise through October, institutional selling starting to pick up. This also has a
high correlation to tops in the market. See Cobra's Market View chart here.
5. VIX at 1-Month Low in October. Here's a table outlining the S&P 500's performance
in the 2-3 weeks after the VIX hits a one-month low in the month of October. The odds
highly favor the bears under these circumstances. See here.
6. Up Big on Off-Season. Whenever the S&P 500 is up in the off-earnings season, the
tendency has been to sell the market during earnings season. The last three times the
S&P 500 has been up 5% or more in the off-season, the average sell-off during
earnings season has been about 5%. See here.
7. ISEE Index & ETF Only hitting too many extremes. There's also a very high
correlation to tops in the market whenever, on multiple days, we see a reading of over
100 on the call-put ratio on the indices (Index & ETF Only ISEE). Whenever we start to
see a lot of hedging or outright shorting near the end of a big rally like we've had, its
been a pretty big sign that we're headed lower. This chart is courtesy of Cobra's Market
View and the International Securities Exchange. Note the high correlation between tops
in the market, and multiple days of high ISEE index readings.
8. Broken Rising Wedge. We have a confirmed broken rising wedge on the SPY as of
Tuesday. That is pretty bearish. Rising wedges are by their nature bearish formations to
begin with as nearly 70% of the cases will usually end with a breakout to the downside.
9. Lower Trend Line Failure. The Dow Jones Industrial Average (DJIA) broke its lower
trend line Tuesday. The DJIA tends to lead the market. Tuesday's failure is just another
piece of evidence suggesting we're headed lower.
10. Apple Weakening. Now for the grand finale. Apple is the unequivocal market leader
and was the market leader in this huge September rally. Now just because Apple sold
off on earnings doesn't mean that this particular move up is over. In fact, there are
cases where Apple has reversed out of its sell-off to make new highs days later. But
those cases are very few. If Apple closes under $300 a share, it will be a very bad sign
for this market, and particularly for the QQQQ (given the fact that it's nearly 20% of the
weighting of the NASDAQ-100).
There's some strong evidence that Apple is very overextended. You can see the
arguments making a case for an intermediate term top in Apple (2-3 months) here. Now
for the big disclaimer. This is the part that 99% of the people who are in the financial
industry have difficulty comprehending: Just because the evidence overwhelmingly
favors the bear case, just because the correlations are very high that we've either
topped or are approaching a top to this rally, just because commercial traders are super
net short, doesn't mean that we are going to sell off with 100% certainty! This is just
evidence! Evidence needs to be weighed against other considerations. Right now the
balance of the evidence supports a conclusion that the market is about to undergo a
correction. If the market doesn't happen to sell-off from here, it doesn't make the
conclusion or the evidence any less valid. Just because an indicator doesn't work one
time, doesn't mean that the entire sample of cases becomes invalidated. Most of the
indicators above have such a high level of reliability that any one of them individually
can suggest we're topping when at extremes. We have several indicators at extremes.
Yet, in the end, what moves this market higher is a willing buyer and a willing seller. If
the supply of buyers continues to outstrip the supply of sellers, then despite the hard
evidence, we're going higher. But the only common sense thing for traders and
investors to do is to bet with the probability. Right now, the odds favor the bears. That's
all that can be said here. But given that QE2 is right around the corner, given that the
mid-term elections are right around the corner, and given that Ben Bernanke has made
it painfully obvious that the Federal Reserve will do everything in its power to backstop
the equities market, anything is possible. If Bernanke wants it, we can rally 100 straight
days from here with every single indicator in the market hitting extremes. One more
thing: These were just a selection of some of the indicators suggesting that we're at
extreme levels. Good luck! Disclosure: Net long Apple with a fully hedged call-spread.
Heavy puts on the QQQQ.Disclaimer: The information contained in this blog is not to
be taken as either an investment or trading recommendation, and serious traders or
investors should consult with their own professional financial advisors before acting on
any thoughts expressed in this publication. This blog is for intellectual and educational
purposes only.
Stock Market Thrill Ride: Dave's Daily - ‘You could take any image put up above
here and whatever the image message conveys do the opposite the next day.
Let's see, down 165, up 129 and it isn't any wonder retail is in its 23rd week of
equity mutual fund redemptions. I don't want to sound unhappy since we're
overwhelmingly long markets but trading against this machine-driven affair
becomes more difficult with each day. Basically, everything reversed from
yesterday and we might just end this tale there. Materials, industrials, energy and
airlines led markets higher. Commodities did an about face rising as the dollar fell
which accelerated upon release of the Fed Beige Book showing slow growth.
Who knew?! (It's that "win-win" stuff again.) A consequence of low interest rates
is companies like EBay and IBM are or have sold bonds at low interest rates to
buy back their own stock. This is just financial engineering versus innovation and
growth one of the things wrong with ultra low interest rates. And, by the way, the
Fed did a small POMO operation today just to let us know they're around. Volume
was lighter on the reversal higher which has been the case forever it seems.
Breadth was positive…’
Currency Wars: A Race to the Bottom of the Inflationary Barrel Ron Paul | Inflation
fears are heating up this week as Fed Chairman Ben Bernanke gave a
speech in Boston on Friday, causing further frantic flight into gold by those
fearful of the coming “quantitative easing” the Fed is set to deliver in
November.
From Global Depression to Global Governance Andrew Gavin Marshall | We now

stand at the edge of the ‘Great Global Debt Depression,’ where nations are
beginning to implement ‘fiscal austerity’ measures to reduce their deficits.
Why California is About to Fall Off Into an Ocean of Unpayable Debt

EconomicPolicyJournal.com | By around 2012 or 2013, the three major state
pensions’ obligations will be more than five times as large as total state tax
revenue.
Fed Wants Banks to Buy Back Some Bad Mortgages To the long list of those
picking fights with banks over bad mortgages, add the Federal Reserve.
The U.S. May Have To Sell Some Assets To Get Out Of Its Debt Mess Check the
national debt clock: Our federal debt is $13.3 trillion, next year’s budget is $1
trillion in the red, and we have unfunded commitments for Social Security,
health care and other programs as far as the eye can see. [ How about
additionally ending the endless war / military industrial complex / defense
runaway spending. ]
Foreclosure Expert Confirms Mortgages Pledged Multiple Times, Not Actually

Securitized, Document Problem Is Really a System of “Push-Button Fraud”
Yesterday, I showed that mortgages were fraudulently pledged to multiple
buyers at the same time.
National / World
As Mid-Term Election Nears, NAACP Declares Tea Party Rife with Racists Kurt
Nimmo | It appears the NAACP is drinking the SPLC and ADL kool-aid.
Violent Anarchists Help French Authorities Crush Pension Protests Paul Joseph
Watson | Pointless rioting, burning of cars and smashing shop windows has
“shot the protest movement in the foot.”
Alex Jones: EU Dictators Plan Fresh Looting Of Tax Slaves Infowars.com | EU is

trying to fill its coffers at a time when everyone else is being told they must
tighten their belts and accept draconian austerity measures.
Time Magazine: Prospect Of Civil War In U.S. “Doesn’t Seem That Far Fetched”
Paul Joseph Watson | Even establishment mouthpiece entertains notion of
mass civil unrest as backlash to economic collapse.
Four men railroaded in plot to bomb synagogues Jerry Mazza | If you smell rat,
trust it’s our friends in Intel and Law Enforcement land, looking for their
Christmas bonuses, and some more blood.
Gen. Hugh Shelton: Clinton Official Suggested Letting U.S. Plane Be Shot Down
To Provoke War With Iraq Huffington Post | “A high-ranking cabinet member
suggests intentionally flying an American airplane on a low pass over
Baghdad so as to guarantee it will be shot down, thus creating a natural
excuse to reltaliate and go to war.”
War, What is it Good For? Activist Post | Videos represent more than 75 years of
separation between Smedley Butler and Michael Prysner: two military men
with a conscience.
Report Shows Drones Strikes Based on Scant Evidence Gareth Porter | A new
report on civilian casualties in the war in Pakistan has revealed direct
evidence that a house was targeted for a drone attack merely because it had
been visited by a group of Taliban soldiers.
EU Leader To Dissenter: “How Dare You Say I Was Not Elected, I Was Elected By
The Commission In Secret” In democratic politics there is a distinct
difference between selection and election. However, according to European
Commission President, José Barroso, the two are interchangeable.
TIME Asks “Will Bankers go to Jail for Foreclosure-gate?” “The real blood on the
Street would be if the Feds are looking into the some of the more salacious
charges that are coming out about the securitization of mortgage bonds.”
White House officials block Obama visit to India’s Sikh Golden Temple over fears
it will strengthen belief he is a Muslim White House officials have stopped
President Barack Obama from visiting the Golden Temple in Amritsar, India,
over concerns that coverage could strengthen a belief he is a secret Muslim.
Time Magazine: Prospect Of Civil War In U.S. “Doesn’t Seem That Far Fetched”
With protesters in France entering a seventh day of strikes and
demonstrations against draconian austerity measures, many political
observers in the U.S. are now wondering how long it will be before similar
scenes unfold on American streets, with even Time Magazine now
conceding that the prospect of a civil war in the States “doesn’t seem that
far fetched”. Broke UK Slashes 500,000 Government Jobs [ I highly
recommend the prescient film, ‘V for Vendetta’ (underplayed to audiences
here and thar’), which in portraying the Orwellian English society of a not
too distant future factors in the fait accomplis of american civil war which
has begun and is inevitable in light of the pervasive greed, corruption, and
incompetence of american leadership, publicly and privately, as well as
inherent criminality, government / non-government. ] Up to 500,000 public
sector jobs could go by 2014-15 as a result of the cuts programme,
according to the Office for Budgetary Responsibility.
Under pressure David Cameron faces calls for a new EU vote David Cameron was
under fresh pressure to hold a referendum on Europe last night – as France
and Germany called for the controversial Lisbon Treaty to be redrawn.
US Chamber of Commerce lobbyist moderated panel on outsourcing American

jobs: report The US Chamber of Commerce has become the latest enemy of
American liberals.
CIA ‘was warned about bomber of Afghan base’ A CIA officer was warned that the
Jordanian double-agent who blew himself up at a US base in Afghanistan,
killing seven Americans, might have been working for al-Qaeda, yet did not
tell his bosses.
Trades Hall president Kevin Bracken calls 9/11 ‘conspiracy’ THE president of the
Victorian Trades Hall has sparked outrage after controversially claiming the
September 11 2001 World Trade Centre attacks were a conspiracy, not the
result of terrorist activity.
Unfair Trade: 10 Questions About Our Globalized Economy That Neither

Conservative Or Liberal Supporters Of Current U.S. Trade Policies Can
Answer Most Americans still seem to be convinced that “free trade” is “fair
trade” and that to be against current U.S. trade policies and globalization
means that you are anti-business, anti-free enterprise and anti-American.
Feds press mortgage lenders to fix documents (Washington Post) [ Fix

documents? In matters involving far more serious crimes of far more significance
longer term to the nation, I’d be content with mere adherence to clear law applied
to the documented facts, no matter where and to whom the crimes lead … see
infra… ] White House says Obama will not sign foreclosure bill [ Oooooh,
whoops … Sounds like a plan!] Consumer advocates and state officials argue
legislation would make it difficult for homeowners to challenge documents
prepared in other states. [When talking about the pervasively corrupt american
legal / judicial system, you’re truly talking about tips of the iceberg! Judges rule
without title, lenders can't foreclose (Washington Post) [ Rules of law? I didn’t
think they cared. That’s certainly the direct experience I’ve had with the
pervasively corrupt american legal / judicial system (along with the other two
branches of the u.s. government and defact bankrupt america generally). Court
decisions could call into doubt the ownership of mortgages, raising urgent
challenges for both the real estate market, wider financial system. Connecticut,
California join probe of Ally (Washington Post) [I’d be much more impressed if
they initiated a probe of more readily discernible criminal offenses in violation of
the RICO Act http://albertpeia.com Frauds/Liars (sic-lawyers)Covering Up for
Other Frauds/Liars (sic-lawyers). In Productive Societies as China, Japan, etc.,
Fraudulent Liars (sic-lawyers) and the Fraudulent u.s. System They're a Part of
Are Unheard Of/Non-existent. List of Files Regarding Filed Attorney Grievance
Against Fraud coan et als Or Here For A Clearer View Of Filed Grievance
Complaint, Response, Exhibits, and Related RICO Filings Note the Committee of
Frauds/Liars (sic-lawyers). Included are DOJ Rep., State Court Rep., State Atty.
General Office Rep., and even a Vegetable Garden yale law prof who probably
never practiced law in his life. How Pathetic!
http://albertpeia.com/fbiofficela91310 ] Justice: FBI improperly opened probes
(Washington Post) [ I just hope they’re as zealous (in probing readily discernible
crime) with regard to my RICO matters and the corruption in the (judicial / legal)
process since, in the final analysis, it will have been the corruption within that will
have brought the nation down irrevocably and totally.
October 15, 2010 (*see

infra)
Steven M. Martinez, Assistant Director In Charge

Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700
Los Angeles, CA 90024
Dear Sir:
I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your
computer’s browser) as per your office’s request as made this day (the disk and contents
have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to
prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as
filed with the subject court as referenced therein (which files are also included on the
aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as
you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including
treble damages and attorney fees, as an incentive for private prosecution of said claims
probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of
such assistance given the seriousness and prevalence of said violations of law which have a
corrupting influence on the process, and which corruption is pervasive). A grievance
complaint against Coan was also filed concurrently with the subject action and held in
abeyance pending resolution of the action which was illegally dismissed without any
supporting law and in contravention of the Order of The Honorable Robert N. Chatigny,
Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the
referenced documents as filed. (Owing to the damage to the financial interests of both the
U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam
provisions of the Federal False Claims Act probably would apply and I would absent
resolution seek to refer the within to a firm with expertise in that area of the law with
which I am not familiar).
The document in 5 pages under penalty of perjury I was asked to forward to the FBI office
in New Haven is probably the best and most concise summary of the case RICO Summary
to FBI Under Penalty of Perjury at Their Request (5 pages)
[ ricosummarytoFBIunderpenaltyofperjury.pdf ].
The correspondence I received from the Congresswoman by way of email attachment

(apparent but typical problem with my mail) along with my response thereto is included on
the 3 disks as fbicorrespondencereyes.htm . With regard to the calls to the FBI’s LA
and New Haven, CT offices: There was one call to the LA office and I was referred to the
Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave
probative evidentiary documents of the money laundering which he confirmed as indicative
of same (he was transferred from said office within approximately a month of said meeting
and his location was not disclosed to me upon inquiry). The matter was assigned to FBI
Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly
retired (our last conversation prior to his retirement related to the case and
parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to
which he registered disbelief and requested I prove it, which I did – he served 12 years in
prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation –
Andrew Maloney’s the one that prosecuted gotti).
In contradistinction to the statement in said correspondence, there is a plethora of

information including evidence supporting the claims set forth in the RICO VERIFIED
COMPLAINT (see infra). Such includes and as set forth in the case, inter alia,
1. A judgment had been entered in my favor in the case, United States District Court
Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth approximately now in
excess of $300,000 remains unaccounted for and which could be used for payment to
creditors, Los Angeles, etc..
2. Counsel Robert Sullivan on my behalf documented by way of certification upon
investigation that Alan Shiff, USBCJ, had falsely stated a dismissal upon which false
statement he predicated a retaliatory and spurious contempt proceeding against me
causing substantial damage, and for which he sought Judicial Notice of those and
related proceedings as did I in some of my filings.
3. The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to Defendant
Coan’s failure to file anything whatsoever by the court’s deadline causing creditors
and me substantial damages: [ Shiff Order of Dismissal With Prejudice on Coan’s
Failure to File Page 1 Page 2 ]
4. Defendant Coan had filed an action against me to prevent me from suing him which
necessitated me to fly to Connecticut for a hearing before The Honorable Robert N.
Chatigny, Chief Judge, USDC, District of Connecticut, who denied Coan’s
requested relief as to Coan but precluded my action against Shiff (although there is
no immunity, judicial or otherwise, for criminal acts, ie., fraud connected with a
case under Title 11, USC, etc.) . [ transcript in pertinent part -
crossexamofcoanbypeia.pdf ]
5. Newly appointed judge, Maryanne Trump Barry, Donald Trump’s sister, was
assigned the RICO case despite the conflict of interest in light of hundreds of
thousands of dollars of illegal (drug) money being laundered through the Trump
casinos by the RICO defendants, and despite my motion to recuse her which motion
she heard herself and denied, and U.S. Trustee Hugh Leonard with whom I met
personally refused to join or file a separate motion to recuse and not long thereafter
left said office for private practice at Cole, Shotz, et als on retainer with the RICO
defendants as his primary client.
6. Probative and evidentiary documents, affidavits, exhibits, including those turned
over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to Assistant U.S.
Attorney Jonathan Lacey with whom I met personally at the U.S. Attorney’s Office
in Newark, N.J., at which time Samuel Alito was U.S. Attorney, and went over said
documents and their probative value with him. Within approximately a month
thereafter upon inquiry I was told that Jonathon Lacey was no longer with the
office, that the file/documents could not be located, and that there was no further
information available concerning contacting him or his location. I thereupon
delivered by hand, copies of said documents to the office of then U.S. Attorney Alito,
addressed to him, with assurance they would go directly to him. In addition to being
inept [ I looked in on the one mob case he had brought, bungled, lost (accidently on
purpose?) since I was suing some mob-connected under RICO and the court (I had
known / previously met outside of court the judge Ackerman through a client) was
absolute bedlam and a total joke since incompetent corrupt Alito brought in all 20
mob defendants (rather than prosecute one or a few to flip them first) who feigning
illness had beds/cots in the courtroom along with their moans during testimony and
had the jury in stitches. As much as I hate the mob, it truly was funny, if not so
tragic.], Alito is also corrupt (and maybe corrupt because he is inept). After a
reasonable (but still rather short) time I called to determine the status and was told
that Alito was no longer with the Office of the U.S. Attorney, that he was
(appointed) a federal judge, and that neither the documents nor any file or record of
same could be located. Alito did parley the same / cover-up into quid pro quo direct
lifetime appointment to the Court of Appeals, 3rd circuit, despite the absence of
judicial experience or successful tenure as U.S. Attorney (Maryanne Trump Barry
as well). This is the same Sam Alito that now sits on the purported highest court in
the land. The real application of the illegal rule ‘don’t ask, don’t tell’.
There is applicable insurance / surety coverage and neither LA, nor creditors, nor I
should continue to have been damaged by this brazened corrupt and illegal scenario,
which should be resolved in accordance with the meaningful rules of law apposite
thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) 219-**** (cell phone)
(213) 622-3745 (listed land line but there are unresolved problems with the line,
computer connection may be the reason but I hesitate to chance greater non-
performance / worsening by their ‘fix’ so cell phone best for contact).
----------
*The foregoing and as indicated therein was previously send 9-14-10 but delivery
confirmation was flawed as set forth below and my inquiries to the u.s. postal service
rebuffed (I believe tampered with inasmuch as your office could not locate same). This
cover letter (9-13-10) is on the 3 disks with navigable hyperlinks to the subject files for ease
of reference, including the files in the RICO action as indicated. (10-15-10) I spoke with
Rose, FBI, ADIC Secretary, who indicates once again that your office has not received the
aforesaid and which can reasonably be presumed to have been tampered with, and hence, a
violation of the federal statute concerning same.
-----
Label/Receipt Number: 0310 1230 0000 0862 8183

Expected Delivery Date: September 15, 2010
Class: Priority Mail®
Service(s): Delivery Confirmation™
Status: Delivered
Your item was delivered at 10:14 am on September 15, 2010 in LOS ANGELES, CA 90024.
Track and Confirm
Enter Label/Receipt Number.
Enter Label / Receipt Number.
Detailed Results:
Bullet Delivered, September 15, 2010, 10:14 am, LOS ANGELES, CA 90024
Bullet Arrival at Post Office, September 15, 2010, 4:12 am, LOS ANGELES, CA 90024
Bullet Processed through Sort Facility, September 14, 2010, 8:29 pm, LOS ANGELES, CA
90052
Bullet Acceptance, September 14, 2010, 4:04 pm, LOS ANGELES, CA 90017
----
Sent Postage Prepaid: United States Mail - VIA Priority Mail, Delivery Confirmation and
VIA Certified Mail this ___ day of October, 2010.
Signed: ___________________________________
Albert L. Peia
-------------

Expected Delivery Date: October 6, 2010
Service(s): Certified Mail™
Status: Delivered
Your item was delivered at 11:42 am on October 06, 2010 in LOS ANGELES, CA 90024.
Detailed Results:
Delivered, October 06, 2010, 11:42 am, LOS ANGELES, CA 90024
Arrival at Unit, October 06, 2010, 4:15 am, LOS ANGELES, CA 90024
Acceptance, October 05, 2010, 11:12 am, LOS ANGELES, CA 90017
---------------------------

Status: Delivered
Detailed Results:
Arrival at Post Office, October 06, 2010, 6:10 am, LOS ANGELES, CA 90024
-------
Sent VIA UPS Courier this 15th day of October, 2010.
Signed: Albert L. Peia
------------
] Federal regulators seek to prevent the growing furor over improper

foreclosures from escalating, pressing mortgage lenders to replace flawed
and fraudulent court documents while insisting that foreclosures continue
apace. But advocates say the policy is soft on banks and may have little
effect, because many lenders are already taking such steps.
Survey: Half of Wall Street expects bigger bonus this year (Washington Post)
[ This is nothing short of incredible … What they should be expecting, for the sake
of the nation and the world, is an 8 by 10 jail cell! ] Bloomberg The percentage
anticipating a bigger bonus increased from last year.
Gerald Celente: “The selloff of America” Financial institutions on Wall Street are
preparing to pay a shocking record $144 billion dollars in compensation &
benefits. This amid spiraling foreclosures and an economic crisis that has
devastated Americans, leaving many out in the street. Gerald Celente of the
Trends Research Institute says that the gap between rich and poor in the US will
continue to get larger because of the bank bailout that Washington shelled out in
2008.
'Systemic failures' led to attack, CIA says (Washington Post) [Riiiiight! And if the
cia says it, it must be true … NOT! … what a hapless bunch of criminals /
frauds … CIA sues former agent for publishing book... Gertz [ Suit filed in
virginia, near Langley and D.C., you don’t have to be a clairvoyant to know
how that suit turns out … which is always great for the court hearing the
case since ‘bonus money’ is invariably involved ... such an outcome is a real
tragedy for this defacto bankrupt and pervasively corrupt nation and the
world. ] ‘The CIA has filed a breach of contract lawsuit against a former
deep-cover agent who published a book critical of the agency without
allowing CIA censors to remove large portions of the manuscript before
publication. Ishmael Jones, pen name for the 20-year CIA veteran and Arabic
speaker who said he sought to expose corruption in the agency, is facing a
civil lawsuit over his 2008 book, "The Human Factor: Inside the CIA's
Dysfunctional Intelligence Culture."The book is a detailed account of his
career inside the CIA's clandestine service and his work as a "nonofficial
cover" operative in the Middle East and Europe."The book contains no
classified information and I do not profit from it," Mr. Jones told The
Washington Times. "CIA censors attack this book because it exposes the
CIA as a place to get rich, with billions of taxpayer dollars wasted or stolen
in espionage programs that produce nothing …’ ] The CIA was cautioned
last year that a self-proclaimed al-Qaeda turncoat might be luring the agency
into an ambush, a warning that came weeks before the man killed seven
agency operatives in a suicide attack in Afghanistan, an internal
investigation finds.
Federal Reserve moves to close credit card loophole (Washington Post) [ How
‘bout moving to close the ‘fed fraud loophole’ … abolish the fed … the
country’s gone totally downhill with the fed’s incompetence, protected
frauds and wall street collaboration, etc.. I mean at this point in the nations
decline, what’s to lose? The fed has a track record of failure and wall street’s
ever larger frauds. ] The proposal is aimed at "fee-harvester cards" that
carry interest rates as high as 79 percent
N.Y. Fed joins cry for mortgage buybacks (Washington Post) [ How about the new
york fed first account for the missing $4+ trillions at said bank before
demanding B of A do anything, just as a matter of chronology, common
sense, and reality. ]The Federal Reserve Bank of New York has joined a
group of investors demanding that Bank of America buy back billions of
dollars worth of mortgage securities that are plagued with shoddy
documentation and lending standards, according to sources.
Taking Down The FED With RICO - Margot B World NewsThe Federal Reserve
Bank of New York is the official depository of the United States government.
... Catherine Austin Fitts was the Deputy Secretary at HUD under the first ...
This video is about the missing trillions from the DOD
...margotbworldnews.com/archives/2008/Nov/.../FEDdanfey.htm - Cached
Meyerson: Wrong way for banks to get rich (Washington Post) [ Goldman Sachs
Beats Estimates as Banking Revenue Rises Christine Harper
(bloomberg.com) ...Oct. 19 – More unequivocal proof that crime in defacto
bankrupt america pays … and pays well … especially with other peoples
money … though many don’t realize that yet … no there’s no alchemy that
produces real money out of thin air and the money for the wall street frauds,
high-frequency computerized churn and earn must come from some place …
guess … ]
U.S. investigating criminal violations in foreclosure crisis (Washington Post)

[ Still ‘no touchey de frauds on wall street’ , among other proected american
criminals… Cartels beef up presence in U.S. (Washington Post) [ I strongly
recommend the entertaining, albeit exaggerated for shock effects, films by
the talented director Robert Rodriguez, ‘Machete’ and ‘Once Upon a Time in
Mexico’. The important point in the films is the manipulation and interwoven
money connections, pieces of the action, bribes, etc. (see infra, RICO case,
10-15-10 letter to the FBI , (
perjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ). While I
assume he’s of Mexican-American descent, and only slightly biased as a
consequence, realize that a real life american story, names, etc., wouldn’t
get made / distributed. Those Cartels referenced in this article wouldn’t be
here without inside american help, very, very high up and quite officially
unofficial. ] When a major Mexican drug cartel opened a branch office in San
Diego, U.S. authorities tapped into their cellphones -- then listened, watched
and waited. ] The administration seeks to send a public message that banks
will be held accountable.
N.Y. Fed joins cry for mortgage buybacks (Washington Post) [ How about the new
york fed first account for the missing $4+ trillions at said bank before
demanding B of A do anything, just as a matter of chronology, common
sense, and reality. ]The Federal Reserve Bank of New York has joined a
group of investors demanding that Bank of America buy back billions of
dollars worth of mortgage securities that are plagued with shoddy
documentation and lending standards, according to sources.
Taking Down The FED With RICO - Margot B World NewsThe Federal Reserve
Bank of New York is the official depository of the United States
government. ... Catherine Austin Fitts was the Deputy Secretary at HUD
under the first ... This video is about the missing trillions from the DOD
...margotbworldnews.com/archives/2008/Nov/.../FEDdanfey.htm - Cached
Narco News Publishes Part III of C.A. Fitts on Narco DollarsThe potential capital
gains are in the trillions of dollars. ... CRA$HMAKER: A Federal Affaire, a
novel of love, death and the Federal Reserve, Victor Sperandeo & Alvaro
Almeida, ... "Albert Vincent Carone: The Missing Link Between Iran-Contra
Cocaine ... Has Dirty Money Polluted Bank of New York? Kelly O'Meara,
...www.narconews.com/narcodollars3.html - Cached - Similar
Catherine Austin Fitts: What can anyone do? A lot! | Gold Anti ...Apr 27, 2008 ...
We have seen leading members of the New York Fed and other Federal
Reserve banks ... trillions of dollars missing from the U.S. Treasury,
...gata.org/node/6257 - Cached
The Real Deal: Saving Tennessee, by Catherine Austin Fitts, 7/4/02U.S.'s Missing
$Trillions Make Mainstream At Last, Scoop, 5/26/03 ...... New York Federal
Reserve (US Treasury Depository, www.ny.frb.org) (+) ...
www.ratical.org/co-globalize/savingTenn.html - Cached - Similar
TPF: <font color=RED>Must Read</font> Catherine Austin Fitts – The ...Add to

that the assumption of the back-door liabilities protecting all of JP Morgan
Chase and the New York Fed member banks' positions on cleaning up Bear
...www.the-peoples-forum.com/cgi-bin/readart.cgi?ArtNum=3890 - Cached
The Precious Metals Market is Manipulated: Gold, GATA and the Turn ...Apr 22,
2008 ... The following is Catherine Austin Fitts' presentation at the “GATA
Goes to .... We have seen leading members of the New York Fed and other
Federal Reserve banks ... trillions of dollars missing from the U.S.
Treasury, ...www.globalresearch.ca/index.php?context=va... - Cached -
Similar
Catherine Austin Fitts; NWO Economics & Wealth Destruction ...Oct 15, 2010...
the $9 Trillion that went missing from The Fed in May, 2009? ..... According
to the Federal Reserve's most recent report on wealth, ... California, Illinois,
New Jersey and New York) and growing at an alarming rate nationwide. ...
by trillions given the country's current economic trajectory. ...
Look Closer - It's a Giant House of Cards Simon Maierhofer, On Tuesday October
19, 2010, 7:14 pm Call me a hopeless 'free market' romantic, but I believe that the
natural forces of supply and demand (and cause and effect) will eventually trump the
Federal Reserve's underhanded, yet obvious, efforts to pump up the market. If you are
curious to know how the Fed massages the stock (NYSEArca: VTI - News) and
commodity markets (NYSEArca: DBC - News) in an effort to keep the economy from
collapsing, keep reading. But before we get there, let's take a look at a problem that is
as obvious as it is ignored.
Bad News is Good News and Good News is Good News If you've ever been asked:
'Honey, does this skirt look too tight,' you know there's only one response that won't
have negative consequences. Right now, the market - at least according to Wall Street
and the media - is in a win-win position. Any commentary to the contrary is met with
disdain. Good news means the economy is improving. Bad news means more
quantitative easing is on the way. Any news is good news. But what about the
foreclosure debacle or mortgage bust 2.0? It seems like investors have not even begun
to price in the eventual ramifications. Without going into too much detail, courtesy of
faulty foreclosure procedures, many mortgage payers may have the legal right to walk
away from their debt. Banks (NYSEArca: KBE - News) and other financial institutions
(NYSEArca: XLF - News) on the other hand have no recourse of getting their money
back. The plot for the financial sector continues to thicken ... and continues to be
ignored.
Obvious and Ignored Simultaneously, Bloomberg featured the following two headlines
on Monday: 'Citigroup profits exceeds estimates on decline in provision for bad loans'
'Mortgage buybacks may cost lenders $120 billion, JPMorgan says' In case the irony of
the headlines isn't obvious, here it is again: Citigroup rallied over 5% because profit
increased due to a reduction of bad loan provisions, while a fellow banking giant sees a
$120 billion future liability caused by bad loans. Is this a problem that can be hidden via
another round of accounting rule changes? As I look at the performance of stocks, I
wonder how long it will take for investors to realize the magnitude of the problem.
Stocks don't care, which means investors don't care - at least not yet. Overall, the
market reminds me a lot of April 2010. For a period of weeks, the S&P (SNP: ^GSPC)
and Dow (DJI: ^DJI) kept inching higher, making incremental new recovery highs and
thereby pushing sentiment readings to an extreme. It seemed like the rally would never
end, but it did. On April 16, the ETF Profit Strategy Newsletter took note of this
unhealthy behavior and stated that: 'The message conveyed by the composite
bullishness is unmistakable bearish.' Note the reason for investors' bullishness in April
and compare it to today. The newsletter continued: 'Most bulls have no clue why they
are bullish except for the fact that they feel the need to play the momentum game. It
doesn't take an economist to see how fragile the economy really is.' Have things
improved since April? Let's see; unemployment has gone up, GDP has been revised
down, banks are struggling, real estate (NYSEArca: IYR - News) continues to slide,
Europe has been patched although hit with more downgrades and the foreclosure
landslide has hit the fan. Things have gotten worse, yet stocks have come back to
revisit the April highs. How come? There's an explanation with an 89% accuracy ratio;
more in a moment. Crushed by an Elephant You can't write an article right now without
commenting on Apples earnings. In case you haven't heard, they were outstanding.
Apple has a variety of great products. After countless crashes, I switched from a PC to
Mac and haven't regretted the move. I'm the proud owner of the 'iTriple' (iPod, iPad and
iPhone) and have no complaints. But investors are a fickle and insatiable bunch. No
matter how good things are, they want better. How much better can it get for Apple?
More iPhone sales through Verizon, is huge. Christmas season is big, but hasn't that
already been priced in? The entire technology sector (NYSEArca: XLK - News)
collapsed in 2000. Busts are always a surprise and they always occur at the top. AAPL
(NasdaqGS: AAPL - News) accounts for 20.93% of the Nasdaq (Nasdaq: ÎXIC), as
much as Google, Qualcomm, Microsoft, Oracle, Amazon and Cisco combined. As Apple
goes, so goes the Nasdaq. In Monday's after hours trading, Apple is down over 5%.
More than a 'Rotten Apple' Apple is not the only liability to the market. Complacency is
another. The VIX (Chicago Options: ^VIX) is trading at the lowest level since April and
small option trades are about as hopeful as they were in April. Small option traders are
one of the purest real-money sentiment gauges as they aren't clouded by institutional
hedging cross currents.
Rising Prices, How and Why? Since the Fed has been unable to create consumer
inflation (why else would we need QE2?) it has shifted its focus to another type of
inflation - asset inflation. As the administrations attempts to propel the economy have
failed, it realizes that the stock markets role as a nation's mood barometer is crucial to
the economy's survival. A declining stock market would surely deliver a depression.
Monetizing Debt Monetizing debt was the buzzword in early 2009, when the Federal
Reserve agreed to buy $1.2 trillion of government and government agency debt (such
as Fannie Mae and Freddie Mac). By so doing, the Federal Reserve exchanged crisp
new dollar bills against toxic debt. This also meant that the U.S. dollar was not only
backed by U.S. Treasuries, it was also backed by toxic mortgages. Quite a departure
from the gold (NYSEArca: GLD - News) standard. The chart below shows the soaring
balance sheet of the Federal Reserve. [chart]
In POMO They Trust Who are 'they?' POMO is the Federal Reserve's Permanent
Market Operations. Via POMO, the Fed buys back T-Bonds from banks and financial
institutions. 'They' are banks. Banks sell the T-Bonds at a profit and invest the additional
funds in stocks and commodities. A rising stock market - even if devoid of any
fundament reason - is what the government wants. It doesn't matter that the same
banks that started the financial wreckage now make money with the clean up. The chart
below illustrates this process. Entire books have been written to explain the unethical
role of the Federal Reserve. The November issue of the ETF Profit Strategy Newsletter
explains the process concisely and understandably in a few pages. [chart]
POMO vs. Free Market As mentioned above, I am a free stock market romantic and
believe that normal market forces will drag the market down as swiftly as it's come up.
But, POMO should not be underestimated. It's success rate in lifting the market is in
some instances higher than 80% and the Fed is holding a lot of POMO purchases
before the November 2nd elections, probably in an attempt to keep prices up (a detailed
analysis of the POMO effects on the S&P and schedule of future POMO purchases is
available in the November ETF Profit Strategy Newsletter). Whether you are bullish,
bearish or confused, the coming days/weeks seem to be pivotal in determining whether
POMO will drive prices up, or market forces will push prices down. The ETF Profit
Strategy Newsletter includes a forecast for the days, week, and month ahead, along
with safety and target levels that help navigate the market and stay on the right side of
the trade.
Will Floating QE2 Sink the Economy? McMorris In 2007, savers in America
actually were "dis-saving" or saving at negative rates of about -2%, according to
the Federal Reserve. But now that Americans understand the need to cut debt,
savings rates have rebounded correspondingly to over 6%. Question: If we view
the 8% swing as a one-time step down to a new baseline, could we grow GDP at a
3-4% desired rate from that baseline and maintain a 6% savings rate? My answer?
No! The 8% change in savings behaviour has a significant impact on aggregate
consumption. What is saved is not spent. With 70% of the American GDP
dependent on Consumption, such a significant impact will necessarily have a
negative impact to GDP.To better understand this secular (generational) change
in behaviour, here is the formula for GDP:
GDP = Consumption (Private) + Investment + Govt Spending + Net Trade (where

imports are negative)
For GDP to grow, one or all of those elements must grow. Consumption is said to
have a 70% weighting ($10.3T of $14.6T in Q1 2010), so its growth is most
important (at an 8% delta in consumption, the impact to GDP is 5.6%). Exports are
negative, and no matter how much we depreciate the dollar, X will probably not
turn positive, so no help there. Government spending subtracts from
Consumption and Investment in reality, since it is not productive. So, though it
has been 15% of the equation historically, it has moved toward 25% as
Consumption has declined. Government Spending must be reduced for a healthy
economy, so no growth there, but contraction. Investment does not include
Savings, Bond or Share Purchases, so what has been lost in Consumption to
Savings is lost to GDP growth. So, while the step function towards savings
brought GDP down to 1%, what will happen to move it back up, and therefore
allow profits to continue to expand and eventually for businesses to re-employ?
Got me. We are in a classic "liquidity trap", just like Japan. I think our population
is inherently more biased to consumption, so I don't think we stay trapped for as
long. But it won't be easy to get out. By component: Consumption has been
impacted by both unemployment increases and savings increases. It may not
continue to shrink, but it won't grow much either (therefore the PIMCO-inspired
label "New Normal"). We do have the benefit in this country of an annual
population increase of around 1%. That helps as compared to Japan which has
no immigration. Considering the consumer commitment to debt reduction and
static unemployment, I think another 2% of growth, on top of population, is
probably all that can be asked for. So, 3% x .70 weighting = 2.1% contribution. But
Savings will continue to subtract from GDP (since it reduces Consumption).
Savings does not turn into investment until businesses conduct capital
expansion projects, and replacement does not count. For the same reason, equity
ownership of businesses does not count either as it is mostly a matter of trading
existing shares. An IPO or secondary offeirng would contribute to GDP if the
proceeds were used for capital purchases. I don't think govt financed
"Infrastructure Projects" count either, as they are mostly replacement or repair of
existing public capital (roads and sewers). Businesses sitting on big piles of cash
detracts from GDP as the money is not Invested in the GDP sense. 1%
contribution, best case? Government spending continues to contract (especially
state and local). No help here for GDP growth and instead it is likely to subtract
from GDP over the coming years by 2-3% as pension and other government
benefit programs undergo a squeeze. The real estate tax base is not coming back
anytime soon and so spending must also be contracted. Net Exports may become
less negative with a dollar devaluation policy. But the impact will be small. Most
other exporting economies are depreciating their currencies in kind so as to not
lose competitive advantage. The only beneficiary are commodities and precious
metals. Maybe we go from -2% to -1%. No real help. Bottom line: where do we get
GDP growth? I show (2.1 + 1 - 2 - 1) = 0.1%. This is the a normal that is different
than in the past and a wise investor will consider if this is the economic
environment that will lift the value of equity markets. Author's Disclosure: No
positions in stock discussed in this article
Homebuilders Remain Pessimistic
Nicholas Perna: Downside Risks Are Greatest in Coming Year
From Global Depression to Global Governance Andrew Gavin Marshall | We now

stand at the edge of the ‘Great Global Debt Depression,’ where nations are
beginning to implement ‘fiscal austerity’ measures to reduce their deficits.
Why California is About to Fall Off Into an Ocean of Unpayable Debt

EconomicPolicyJournal.com | By around 2012 or 2013, the three major state
pensions’ obligations will be more than five times as large as total state tax
revenue.
Dollar Declines for Fifth Week on Prospects of More Monetary Easing by Fed
Bloomberg | The dollar fell for a fifth week against the euro as traders
speculated the Federal Reserve will further ease monetary policy, debasing
the greenback.
Leaked Budget Reveals UK Plan To Fire 1% Of The National Population The UK

austerity measures are starting to go from bad to worse.Photographers
snapped photos of Treasury Secretary Danny Alexander holding an open
copy of the unreleased Strategic Defence and Security Review, according to
Daily Mail. Now British are going crazy guessing whether or not this was an
intentional leak to the press.
The New Tax Man: Big Banks and Hedge Funds Nearly a dozen major banks and
hedge funds, anticipating quick profits from homeowners who fall behind on
property taxes, are quietly plowing hundreds of millions of dollars into
businesses that collect the debts, tack on escalating fees and threaten to
foreclose on the homes of those who fail to pay.
Here Is The Real Reason Why The Fed Is Delaying The New $100 Bill A few weeks
ago, the Fed announced that the new $100 dollar note has been delayed, and
will not make broad circulation by the February 2011 scheduled date.
Mortgages Were Fraudulently Pledged to Multiple Buyers at the Same Time April
Charney – a consumer lawyer with Jacksonville Area Legal Aid – and
CNBC’s Dennis Kneale noted in February 2009 that courts have found that
some mortgages have been sold again and again to different trusts, when
they should have only been sold once.
National / World
Whistleblower Speaks On Fraudclosure Zero Hedge has been approached by an

individual who participated directly in the various aspects of what is now
broadly known as Fraudclosure.
The Biggest Bank Robbery In History? More Quantitative Easing = Backdoor

Bailouts The U.S. Federal Reserve is getting ready to conduct another
gigantic bailout of the big banks, but this time virtually nobody in the
mainstream media will use the term “bailout” and the American people are
going to get a lot less upset about it.
U.S. Debt Woes Expose Hidden Austerity and Looting of Public Assets The
austerity sharks are circling their wounded prey. The U.S. economy
continues to collapse amid dwindling stimulus funds, while states are barely
able to keep their heads above water.
Democrats Announce Plan to Bribe Seniors with $250 Check as Election Nears
Kurt Nimmo | Democrats insist the bribe is meant to make up for a second
year without a cost-of-living increase.
Analysts And Democrats Slam Attack On Rand Paul, Washington Post Persists
With Smear Steve Watson | Paul hits back with his own campaign ad, may
boycott final debate with Conway.
EU Dictators Plan Fresh Looting Of Tax Slaves Paul Joseph Watson | Brussels
bastards want to impose direct tax on already destitute Europeans laboring
under draconian austerity measures.
Establishment Republicans Poised to Take Control of House from Establishment

Democrats Kurt Nimmo | Every four years or so one party replaces the other
and the same basic policies are pursued with new vigor.
Will Americans Follow French Example Of Mass Civil Unrest? Paul Joseph Watson
| Or will the sleeping middle classes continue to scratch their butts and
watch Dancing with the Stars?
Terrorists storm Chechen parliament killing 3, security repels raid A group of

militants who broke into the parliament of Russia’s Republic of Chechnya
have all been killed in a shootout with special forces. At least three other
people died after the gunmen stormed into the building in the capital
Grozny.
China Raises Benchmark Rate By 25 bps Undoubtedly, this is its response to not
being labeled a currency manipulator. However, as the US will most likely
never raise rates again, and with the Yuan still pegged to the dollar, unlike in
a typical recovery, where this would signal the elimination of excess liquidity
in an attempt to prevent inflation, this time it is a largely symbolic move.
Foreign worker numbers surge to a record 2.4m as Eastern Europeans return to

Britain The number of foreigners working in Britain has hit an all-time high
despite the fragile state of the recovery. This summer, the total topped
2.4million for the first time after thousands arrived from abroad in the spring.
As French Strikes Continue, Country Runs Out Of Gas As the ongoing strikes in
France against austerity continue, and see increasingly more participation,
the latest development is all too familiar to all those who travelled through
Athens in the summer: huge lines for gas.
Violent French Protests Show Why A New Debt Crisis Is Inevitable French
protests continue to rock France, with marchers throwing Molotov cocktails
and blocking fuel supplies.
CIA sues former agent for publishing book... Gertz [ Suit filed in virginia, near
Langley and D.C., you don’t have to be a clairvoyant to know how that suit
turns out … which is always great for the court hearing the case since
‘bonus money’ is invariably involved ... such an outcome is a real tragedy for
this defacto bankrupt and pervasively corrupt nation and the world. ] ‘The
CIA has filed a breach of contract lawsuit against a former deep-cover agent
who published a book critical of the agency without allowing CIA censors to
remove large portions of the manuscript before publication. Ishmael Jones,
pen name for the 20-year CIA veteran and Arabic speaker who said he
sought to expose corruption in the agency, is facing a civil lawsuit over his
2008 book, "The Human Factor: Inside the CIA's Dysfunctional Intelligence
Culture."The book is a detailed account of his career inside the CIA's
clandestine service and his work as a "nonofficial cover" operative in the
Middle East and Europe."The book contains no classified information and I
do not profit from it," Mr. Jones told The Washington Times. "CIA censors
attack this book because it exposes the CIA as a place to get rich, with
billions of taxpayer dollars wasted or stolen in espionage programs that
produce nothing …’
Cartels beef up presence in U.S. (Washington Post) [ I strongly recommend the
entertaining, albeit exaggerated for shock effects, films by the talented director
Robert Rodriguez, ‘Machete’ and ‘Once Upon a Time in Mexico’. The important
point in the films is the manipulation and interwoven money connections, pieces
of the action, bribes, etc. (see infra, RICO case, 10-15-10 letter to the FBI , (
http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperj
ury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ).
While I assume he’s of Mexican-American descent, and only slightly biased as a
consequence, realize that a real life american story, names, etc., wouldn’t get
made / distributed. Those Cartels referenced in this article wouldn’t be here
without inside american help, very, very high up and quite officially unofficial. ]
When a major Mexican drug cartel opened a branch office in San Diego, U.S.
authorities tapped into their cellphones -- then listened, watched and waited.
Previous: Large U.S. paramilitary presence in Afghanistan (Washington Post)

[ Yeah … defacto bankrupt america can really afford it … you know, to
protect (and participate in) their resurgent heroin trade to the benefit of the
few ‘insiders’. ] Existence of covert CIA teams, operating near the Pakistan
border, is revealed in a new book by Bob Woodward and documents
released by WikiLeaks.
U.S. (accidently on purpose) says Chinese bypassing sanctions (Washington

Post) [ Riiiiight! ‘Johnny-on-the-spot’ defacto bankrupt america all over this
one … Riiiiight! Come on … what’s defacto bankrupt america gonna’ do …
threaten not to let China buy ever more worthless american paper … not let
Apple produce their computers, ipods, ipads, iphones, components there,
etc., among other so-called american companies. ]
Majority says federal workers are overpaid for work they do (Washington Post)
[ A glaring instance where the majority is clearly right, and accurate polls as
those done by the Washington Post are welcomed! ‘A new Post poll finds
negativity toward federal workers.’ Previously posted: GOP targets federal
workers' pay (Washington Post) Issue becomes midterm flash point in wake
of high unemployment, stagnant private-sector wages. Poll: Are federal
government salaries too high? The obviousness of the answer to this
question brings to mind such rhetorical queries as ‘do bears s*** in the
woods’ and ‘is the Pope Catholic’, etc.. Of course, unequivocally
responding in the affirmative does not do justice either to the obvious
response or to the preposterousness of the sense of importance attached to
these so-called employees who have to be considered the most over-paid,
incompetent, and most cases corrupt (all 3 branches of the u.s. government
included, along with the fed, etc., … and what about those lifetime
appointments … abolish them! ) and lazy employees anywhere, anytime.
Indeed, given the damage they’ve done, they should be paying the
taxpayers! ]
The ugly truth about the economy (Washington Post) [ Well, Mr. Sloan is quite
right to be talking about the ugly truth about the economy; except, it’s far uglier
than even he dares to imagine or put down in writing, particularly for defacto
bankrupt, pervasively corrupt america … Economists Herald New Great
Depression The world is currently experiencing the modern day equivalent of the
Great Depression, according to a prominent economist who has added his voice
to scores of others now forecasting ongoing economic doom on a scale not seen
since the 1930s.) , and my position and that of demographer Dent (This is a global
move was a manipulated bull (s***) cycle in a secular bear market. This has been
a typically manipulated bubble as has preceded the prior crashes with great
regularity that the wall street frauds and insiders commission and sell into. This
is a typical wall street churn and earn pass the hot potato scam / fraud as in prior
crashes’. This national decline, economic and otherwise, will not end until justice
is served and the wall street frauds et als are criminally prosecuted, jailed, fined,
and disgorgement imposed. Krugman: It's All Downhill From Here Cullen Roche
Love him or hate him Paul Krugman has been awfully right with regards to the
macro picture in the last few years. He’s one of the rare economists who had the
foresight to see the housing bubble and the likelihood of economic downturn that
would result from it. Krugman recently caused a stir when he said the US
economy was headed for the third depression. He isn’t back down from that
outlook:
I’ve had a couple of conversations lately with people who follow

politics and public affairs, but aren’t that close to the economic
discussion — and I’ve discovered that there are two comforting
delusions still out there.
Delusion #1 is that we’re on the road to recovery, just more slowly

than we’d like; to be fair, the White House keeps saying this.
But it’s not at all true. GDP is growing below potential; employment,
even if you focus just on private employment, is growing more
slowly than the working-age population. If you ask how long it will
take us to return to, say, 5 percent unemployment on the current
track, the answer is forever.
Delusion #2 is the belief that the stimulus may yet do the trick,
because there are still substantial funds unspent. I tried to deal with
this last year. The level of GDP depends not on total funds spent, but
on the rate at which funds are being spent, which has already
peaked; GDP growth on the rate of change in the rate at which funds
are being spent, which peaked last year. It’s all downhill from here.
If you can ignore the schizophrenic market for just a second it’s hard to reject
Krugman’s macro outlook. The private sector has been running on fumes
since the debt bubble burst in 2007. The government’s extraordinary actions
helped bolster the economy, but merely papered over what was a very weak
private sector. As we see the government step aside it’s difficult to imagine
that the weakness at the private sector won’t again be exposed for what it
really is.
Here Are 13 Signs That We’re Actually In A Depression Right Now Gregory
White | David Rosenberg has outlined, in his latest letter, the 13 reasons with
this so-called recovery is actually a depression… David Rosenberg has
outlined, in his latest letter, the 13 reasons with this so-called recovery is
actually a depression.Rosenberg sums it up like this:
This is what a depression is all about — an economy that 33 months after a

recession begins, with zero policy rates, a stuffed central bank sheet, and a
10% deficit-to-GDP ratio, is still in need of government help for its
sustenance.
Harry Dent, Jr. Economy will be in a Depression by 2011

The worst of this next depression is likely to hit between mid-2010 and mid-2013,
especially around early 2011, but if the banking system continues to implode a
deep downturn or depression could begin sometime in 2009 instead of 2010.
Dow will Fall to 3,800 – 4,500 by 2012
Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest.
Inflation will Increase until mid- 2010 and then turn to Deflation
Interest Rates will Increase
U.S. Dollar will Decline
Housing will Decline by 40 – 60% from Today’s Levels
Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010
and 2012). ]
Trends Research Institute says that the gap between rich and poor in the US
will continue to get larger because of the bank bailout that Washington
shelled out in 2008.
] If you look at things rationally rather than politically, you'll see that Washington
has far less power over the economy, and far less maneuvering room, than
people think.
Housing sales paralyzed by foreclosure crisis (Washington Post) [ If it were only

the Sunshine State, there’d at least be a modicum of light at the end of
defacto bankrupt america’s tunnel to h***; as with stocks (infra, Weisenthal)
there’s still plenty of room to fall! ]Few places are feeling the impact of the
sudden halt to transactions related to mortgage foreclosures more than the
Sunshine State, where foreclosures and short sales account for more than
one out of every three home sales.

October 15, 2010 (*see

infra)

Dear Sir:


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) 219-**** (cell phone)
----------
of reference, including the files in the RICO action as indicated. (10-15-10) I spoke with
Rose, FBI, ADIC Secretary, who indicates once again that your office has not received the
aforesaid and which can reasonably be presumed to have been tampered with, and hence, a
violation of the federal statute concerning same.
-----

Status: Delivered
Track and Confirm

Detailed Results:
90052
----
VIA Certified Mail this ___ day of October, 2010.
Signed: ___________________________________
Albert L. Peia
-------------
Label/Receipt Number: 7009 2250 0002 1116

5915
Service(s): Certified Mail™
Status: Delivered
Detailed Results:
Arrival at Unit, October 06, 2010, 4:15 am, LOS ANGELES, CA 90024
---------------------------
Label/Receipt Number: 0309 3220 0000 4028

9039
Status: Delivered
Detailed Results:
Arrival at Post Office, October 06, 2010, 6:10 am, LOS ANGELES, CA 90024
-------
Sent VIA UPS Courier this 15th day of October, 2010.
Signed: Albert L. Peia
------------

REMINDER: There's Been A Huge Global Market Boom, And There Is Plenty Of
Room To Fall Weisenthal, On Monday October 18, 2010, 5:17 pm EDT ‘We
discussed this this morning, but in light of the mediocre Apple and IBM earnings
it's worth revisiting this. The markets have been on an epic run all around the
world, with all kinds of "risk" assets from stocks, to commodities, to emerging
market bonds soaring towards nosebleed heights. And at least for the moment, it
seems the air is about to let out as stocks are tanking after hours. Bear in mind
too that in the conventional sense, both IBM and Apple reported "good" earnings,
but with the selloff in full effect, investors will start to ask: what other "good"
news is priced in? The election? QE? Look out below.’
S&P 500 index futures dip after Apple, IBM (Reuters) - 1 hour ago Reuters - S&P
500 index futures slipped lower on Monday after quarterly results from Apple Inc
and IBM . NEW YORK (Reuters) – S&P 500 index futures slipped lower on
Monday after quarterly results from Apple Inc (AAPL.O) and IBM (IBM.N). S&P 500
futures dipped 3.6 points, Dow Jones industrial average futures fell 17 points, and
Nasdaq 100 futures shed 17 points. Apple shares were halted in extended trade
and IBM shares fell 3.6 percent to $137.70. [ And don’t forget, that includes the
ongoing currency manipulation / translation to inflate earnings per share (and
artificially lower p/e multiples).]
Why There Is Currently a Sizeable Air Pocket Beneath Risk Assets Roche /
Pragmatic Capitalism ’…Currently, I view the market as excessively risky from the
long side (which is why I am net short for the first time since before the flash
crash earlier this year). Aside from several exogenous risks (the foreclosure
mess, a strong Euro sparking sovereign debt fears in Europe, currency war, etc)
there is also the risk that all three of the themes above disappoint investors in the
coming weeks as a massive “sell the news event unfolds” in the final weeks of
October and in early November. On a slightly different note – I ran some numbers
over the weekend and pulled up a few factoids that readers might find interesting
with regards to the indicator I use called “quantified disequilibrium”. As I’ve
previously mentioned, this program quantifies what I call the disequilibrium in the
market – it quantifies hundreds of inputs to output a real-time measurable risk
level. Using this algorithm without leverage in a long/short 100% equity strategy
has generated a 25.67% annualized return since inception (January 2006) with a
Sharpe ratio of 2.29 and a max monthly drawdown of -5.22% in one of the most
challenging market environments ever. The risk component has only been at
current levels (or higher) twice in the last 5 years. The first instance was
September 24th, 2007 at S&P 1526. Just shy of the all-time high and prior to a
multi-month decline of almost 20%. The second instance was January 5th, 2009 at
S&P 890. We had rallied 11% off the October 2008 lows and we all know what
happened next. The market took a nose dive down to the March 2009 lows for an
epic two month collapse of 25%…’
And Now, Here's The First 11 State Pensions Funds That Will Run Out Of Money
Provided by The Business Insider, October, 18, 2010:Here's a shocker: The most
immediate state pension crises aren't in New York or California. They're in Middle
America.When it comes to state pensions in the most trouble, do places like New
Hampshire come to mind? Probably not, unless you live there, and maybe not
even then. After all, it makes sense that the biggest, most populous members of
the union, where budget follies are fairly common, would be facing the most
urgently needed fixes. The truth is considerably different. The Granite State
claims the No. 11 slot, and it's not the only unexpected name facing pension
woes. Hawaii, Kansas and others made their way on to the list. Now, these
pension plans aren't going to be obliterated tomorrow -- New Hampshire, for
instance, is estimated to see its plan run out of money in 2022, so they've got 12
years to rectify the situation. For some other states, the matter is more pressing,
and no more so than for the Land of Lincoln.Illinois is just 8 years away from
exhausting its pension fund and creating a yearly $14 billion hole, according to
data from Joshua Ruah an associate professor of finance at the Kellogg School
of Management at Northwestern University.That's a projected 32 percent of the
state's revenue going to fill a pension hole. Every year.Indiana, Louisiana,
Oklahoma and Colorado are among the next pension funds to fall. The rest of the
union is just around the corner.But wait. Just to make sure the list is not a
complete surprise, know that the New York City suburbs of Connecticut and New
Jersey made it on board. They have until 2019 to sort it out. And Now, 11 State
Pension Funds That May Run of Out Money
#1 Illinois
Year pension fund runs out: 2018
Bill in the following year: $13.6 billion
Share of state revenue: 32%
#2 Connecticut
#3 Indiana
#4 New Jersey
#5 Hawaii
#6 Louisiana
#7 Oklahoma
#8 Colorado
#9 Kansas
#10 Kentucky
#11 New Hampshire
Countrywide's Mozilo will settle fraud claims (Washington Post) [ This should be
policy across the board, particularly on the criminal prosecution side, for which
long overdue fines and disgorgement will substantially eat into the record deficits
of defacto bankrupt america. This national decline, economic and otherwise, will
prosecuted, jailed, fined, and disgorgement imposed. ] The firm's former CEO
will pay millions to settle allegations that he misled investors.
This is an especially great opportunity to sell / take profits! Suckers’ rally to keep
suckers suckered (easy for the wall street frauds to do with just a mouse
click / push of the button). Keep in mind, the totally mindless blather from
the ‘cottage industries’ of and fraudulent wall street itself in talking up lower
P/E multiples when the same is a direct result of the debasement of the
dollar and the consequent manipulation / translation (not real, see Davis,
infra) which preceded the financial crisis / last crash. The unemployment,
trade, deficit, etc., numbers again came in decidedly worse than expected
along with other negative data (and in the ‘wrong direction’, that spin
accorded ‘down but not as bad as before’ b*** s*** ) yet the market has
corrupt! ]
Bank stocks fall again amid fears about mortgage issuers (Washington Post) [ If
that was all the banks had to worry about, they’d be sittin’ pretty … well, still
pretty bad, but the reality in light of the trillions of ‘mark to anything’ but
worthless toxic assets/securities/paper from the last / ongoing fraud makes
this additional nail in their coffins nothing short of disaster! ]The price of
Bank of America, the nation's largest bank, fell 9.1 percent over the past
week to close at a low for the year, as analysts said it may have set aside
aside too little money to meet coming costs.
Feds To Push Inflation As Economic Fix [ This is really quite incredible … and,
you can’t make this stuff up … they haven’t the slightest idea what they’re
doing (except as to purposeful complicity in helping the continued wall
street frauds) … not even a clue! ] Two top Federal Reserve officials argued
for further aggressive action by the central bank, with one saying the
economy needs “much more” help and the other pointing to Japan’s painful
lessons.
Broke and Jobless: 85% of College Grads Moving Home Mac Slavo | In yet another
sign of the times, 85% of college graduates surveyed have reported that they
will be moving home after they get their degrees.
US Financial Imperialism: Why the IMF Meetings Failed Michael Hudson | The
outflow of dollar credit into foreign markets in pursuit of this financial
strategy has bid up asset prices and foreign currencies, enabling
speculators to pay off their U.S. positions in cheaper dollars.
Will the New Debt Commission Back a VAT? Fox Business | Some fear they smell
a VAT, akin to a new national sales tax within the federal debt commission’s
upcoming report on how to cut the U.S. deficit.
Is The Economy Recovering, Or Is Bernanke Blowing The Mother Of All Global

Bubbles? If you haven’t been paying attention, or are only paying attention
to the US market you may have missed something: markets are screaming
higher all over the world, with many risk assets hitting all-time historical
highs.
Investors bet Fed action will bring inflation US inflation expectations have jumped
sharply in the past two weeks as investors bet that the Federal Reserve’s
efforts to boost the economy by pumping in more money will succeed.
The Number One U.S. Export To China: Waste Paper And Scrap Metal Historians
tell us that by the very end of the Roman Empire, goods were pouring into
Rome from all over the known world, but about the only thing being sent out
of Rome was human waste and garbage.
The Last Resort Of A Dying Economic System: From “Beggar Thy Neighbor” To
“Beggar Thyself” The phrase of the week comes from The Privateer’s Bill
Buckler, who has coined the one term that best describes the lunacy that
has gripped the world: “Beggar Thyself.”
ECB: No Really, We’re Going To Keep Printing Euros Like Crazy, Too! Euro
leaders continue to fret that they’re losing the currency war — with the euro
trading still at around $1.40 — and are desperate to convince the world that
they’re happy to devalue their currency like everyone else.
Is The Congress About To Pass A Bailout, And Save The Banks From The
Mortgage-Putback Crisis? It was a depressingly news-filled week for
bankers on the mortgage front.
Treasury 30-Year Yields Rise Most in 14 Months on Prospects for Inflation

Treasury 30-year bonds tumbled, pushing yields to the biggest weekly
increase since August 2009, on speculation that Federal Reserve efforts to
spur the economy will reignite inflation.
Gerald Celente: We’re Living on Borrowed Time Gerald Celente has been
forecasting trends worldwide since 1980, delivering concise, deployable
success strategies and publishing the Trends Journal.
National / World
Exclusive Paul Craig Roberts Interview: Decline of The American Empire

Prisonplanet.TV | A special never before seen interview with economic
expert Paul Craig Roberts.
Americans Buying Guns In Preparation For Civil Unrest Paul Joseph Watson |
Interest in purchasing silver and food stamps also skyrockets in anticipation
of economic collapse.
The War On Terror Paul Craig Roberts | Does anyone remember the “cakewalk
war” that would last six weeks, cost $50-$60 billion, and be paid for out of
Iraqi oil revenues?
Enemy Of The State The Alex Jones Channel | The latest documentary from William
Lewis and Gary Franchi further exposes the secret agenda of FEMA camps
and the specter of martial law which looms over us all.
Tea Party Express Senate Candidate Has Critic Muzzled Kurt Nimmo | Security
guards attached to Joe Miller in Alaska handcuff journalist, prevent him from
asking question at public event.
Scientific American: Kill More Babies To Save Earth Paul Joseph Watson |
Eugenicists push discredited overpopulation myth in pursuit of elite agenda
to reduce global living standards.
Doomsday Denial: Collapse 2.0 looms as UK calm before storm RT | The UK is

bracing itself to hear about public spending cuts worth tens of billions of
pounds.
Merkel says German multi-cultural society has failed AFP | Germany’s attempt to
create a multi-cultural society has failed completely, Chancellor Angela
Merkel said at the weekend, calling on the country’s immigrants to learn
German and adopt Christian values.
G20 ‘Officer Bubbles’ sues YouTube and users over cartoons Toronto Star | Const.
Adam Josephs seeks to compel the Google-owned YouTube to reveal the
identity of the person who created and posted the videos as well as any
information it has on the 24 other users who made allegedly defamatory
remarks.
Americans Buying Guns In Preparation For Civil Unrest Americans are acquiring
guns, silver and going on food stamps at record levels in reaction to the
crumbling economy, trends indicative of a fearful public who are struggling
financially and preparing for potential mass civil unrest in the aftermath of a
total economic collapse.
Defiant Rand Paul Slams “Disgraceful” Opponent In Kentucky Debate Would be

Kentucky Senator Rand Paul refused to shake the hand of his opponent last
night in response to a new campaign ad that Democrat Jack Conway is
running, repeating already thoroughly debunked lies in an attempt to smear
the Tea Party favourite.
W.Va. Sen candidate questions 911 account “The two chairs of the commission
say clearly that they were obstructed, that there is more to be learned . . .
and much more damning things than I am saying right now,” Johnson said.
Mumbai Terror Suspect Worked for U.S. Government Last week U.S. officialdom
declared there was still a threat from unsubstantiated terrorists in Europe
while New York City police conducted a drill simulating a Mumbai-style
attack on civilians in Manhattan’s financial district.
No Wikileaks release Monday: spokesman An Icelandic spokesman for WikiLeaks

said the whistleblowing website would not publish some 400,000 secret
military reports on the Iraq war on Monday, but would make new documents
public “very soon.”
‘US fearing exposure of Iraq war truth’ As the whistleblower website WikiLeaks
plans to release 400,000 more classified documents on the US war in Iraq, an
activist says Washington fears that the truth may eventually see the light of
day.
77,000 Iraqis killed from 2004 to August 2008, U.S. military says (Washington
Post) [ And you can take that to the fraudulent american bank … riiiiight! … Come
on … americans lie about everything and certainly this … A conservative estimate
from AP through only 2007: Study: 151,000 Iraqis died in conflict’s violence
Surveyors face danger to count casualties from 2003 to 2006 The Associated
Press - updated 1/9/2008 7:15:50 PM ET 2008-01-10T00:15:50 About 151,000
Iraqis died from violence in the first three years after the United States invaded,
concludes the best effort yet to count deaths — one that still may not settle the
fierce debate over the war's true toll on civilians and others … americans are just
lying war criminal american scum. ]
Exclusive Interview: Lord Monckton Talks About NWO Master Plan

Prisonplanet.TV | Special interiview with Lord Christopher Monckton about
Al Gore’s climate gate hoax, and the hidden Nwo objective behind it all.
Obama-Goldman Sachs Administration Sides with Banks on Foreclosure

Moratorium Kurt Nimmo | Bring on the robo-signers.
Zardari says he has proof of US terror against Paksitan Pakistan Patriot |

Pakistani sycophantic secularists are in cahoots with the war mongering
Neocons and Neolibs in the US and both blame the local Pakistanis for terror
attacks.
Gen. Hugh Shelton: Clinton Official Suggested Letting U.S. Plane Be Shot Down
To Provoke War With Iraq In the publicity sheet that St. Martin’s Press has
been sending out to spur interest in General Hugh Shelton’s new memoir,
Without Hesitation: The Odyssey of an American Warrior, the last highlight
is a doozy: “A high-ranking cabinet member suggests intentionally flying an
American airplane on a low pass over Baghdad so as to guarantee it will be
shot down, thus creating a natural excuse to reltaliate and go to war.”
WikiLeaks and 9/11: What if? Frustrated investigators might have chosen to leak
information that their superiors bottled up, perhaps averting the terrorism
attacks.
Support For War In Afghanistan At All Time Low American support for the war in
Afghanistan has never been lower, according to the latest CNN polling. The
low numbers just the latest figure in the complex math being calculated to
determine how the US should proceed in the ten year war.
Drudgereport: HAS THE FED RUN OUT OF IDEAS? [ Quite some time ago,
actually. ]
THE 'INFLATION' OPTION...
Dollar Declines for Fifth Week...
17 SOLDIERS KILLED IN PAST 3 DAYS...
Limbaugh: Obama looks 'demonic' in new photos … and limbaugh knows
demonic, himself and relative wobama ... [Obama Distant Cousins with
Palin, Limbaugh, Bush | CNSnews.com Obama Distant Cousins with Palin,
Limbaugh, Bush. Obama's Related to Palin. Wednesday, October 13, 2010.
By Jocelyn Noveck, Associated Press ...
www.cnsnews.com/news/.../obama-distant-cousins-palin-limbaugh-bushes
(wobama, palin, limbaugh, bush distant cousins … I knew there were some
dark secrets there … hillbilly heroin, etc.. – Wow! Talk about the nation-
declining dangers of inbreeding! Poor defacto bankrupt, pervasively
corrupt america never had a chance! ) ]
ABCNEWS: 63 Dem House Seats in 'Serious Danger'...
Barone: Dems find careers threatened by ObamaCare votes...
GALLUP: Unemployment at 10.0% in Mid-October...
Thrill Ride Thursday: Can the Dollar Drop Fast Enough to Keep the Markets
Up? Davis [ The following from Davis is really the key to understanding the
scam / fraud which also preceded the ‘financial crisis’ (which continues) and
consequent market crash ]: ‘…our market "rally" is ALL about the declining
dollar. We are not used to inflation in this country - it hasn’t been much of an
issue for the past generation but that’s what we’re seeing here as we are
experiencing lower wages, lower demand and flat prices - THAT IS
INFLATION or, as we used to say in the 70s - STAGFLATION … In fact, I had
been getting bearish because I thought corporate profits weren’t going to be so
good this quarter, what with the lack of sales and all, but I was wrong. I was wrong
because corporate profits are priced in dollars and dollars are worth 10% less than
they were the last time corporations reported. So silly me - all profits are inflated
by 10% and that 10% is the E that gets divided from the P and gives us a
much better price/multiple to hang our hats on and that gets investors to
BUYBUYBUY and, as I said yesterday - they may as well because Lord
knows it’s utter foolishness to leave your money in a bank and just watch it
lose 2.5% of its buying power EVERY MONTH. Isn’t the declining dollar good
for exports? That’s what they keep telling us, isn’t it? Well, it’s not. What do
you think - that AAPL is making iPhones in China and then shipping them to
Cupertino and then shipping them back to Hong Kong and Tokyo to sell?
No, that would be silly. AAPL is a big multi-national corporation that has an
office in Cupertino but manufactures almost everything overseas. And why
wouldn’t they? Despite a 20% pay raise at FoxConn (and it’s nice to have a
3rd party employ 100,000 workers for you so you can still claim your 34,000
person work-force is mainly American) Apple’s labor cost of producing an
iPad only rose from 2.3% to 3% but that’s in Yuan, which have declined
12.5% with the dollar since May so even-Steven for AAPL! Oh yes, exports
(sorry, I went off track): So, exports were up just 0.2% as the dollar crashed.
Why? Because we don’t make anything here - there’s nothing to export. As
Eddy Elfenbein points out in his excellent "24 Statistics about the US
Economy that are Almost too Embarrassing to Admit," despite inventing the
television in 1927 (Philo Farnsworth for you trivia buffs), NOT ONE (ZERO) of
the 211 MILLION televisions sold in the World in 2009 was made in America.
In fact, overall manufacturing is down 60% in the past 40 years and the US
has lost over 30M factory jobs since Al Gore lost his. Only 12M Americans,
not even 10% of our workforce, now work in Manufacturing so EVEN IF a
10% decline in the dollar boosted manufacturing by 10% and EVEN IF
making 10% more stuff got US Corporations to hire 10% more staff - that
would add just 1.2M workers. That’s not very likely when FoxConn is happy
to ramp up with workers who make less money per day than a US worker
pays for lunch at a roach coach…’
Fed preparing for new action Bernanke: Fed prepared to act to boost economy
(Washington Post) [ Yes … I do believe they’re goin’ to act … they call it a soft
shoe … you know, song and dance … they haven’t the slightest idea what
they’re doing other than to print more Weimar fiat currency debasing same for
a favorable (but not real as measured, ie., against gold, etc.) currency
translation inflating profits, inflating a bubble for the wall street frauds to
commission and sell into; namely, crash as in prior crashes preceded by the
same or similar manipulations. Abolish the fed! Throw the frauds in jail! ]
In foreclosure process, speed equaled money (Washington Post) [ Yeah … we all

know how effective bank speed (fraud) strategies have been … in losing money
… equaled money lost … the sorry story of a defacto bankrupt nation, fraught
with fraud and b*** s*** , in intractable decline ]Banks seized millions of homes
through a mass production system in which firms were paid to move cases
quickly through the pipeline.
The Root of the Problem The Inflation Trader [ I think it unfortunate that most fail
to properly weight in their analysis the irrevocable structural shift that has
occurred in the defacto bankrupt u.s. and which cannot be undone. The ‘powers
that be’ literally gave up (sold out) the american store (ie., technology transfers
for money, protracted treasury depleting and geopolitically unwise wars, perma-
frauds on wall street without prosecution, pervasive corruption at all levels
including all three branches of the u.s. government, etc., covered elsewhere on
this site.) Then of course there’s the insurmountable debt and interest thereon
which is now eating into real (not fake / falsified ) GDP along with other
unserviceable promises exacerbating the magnitude of the nations defacto
insolvency. ] See infra.
Recovery Concerns Resurface Mody / Bondsquawk ‘Stocks declined as increased jobless

numbers and a widened trade deficit spiked concerns about the recovery. Investor’s confidence
in betting that the Fed will take action increased after prices of wholesale goods rose at a very
sluggish rate in September. Treasuries continued to slide and yields ended higher across the
spectrum. Economic Data Initial jobless in the week ended Oct 9 increased by 13,000 to 462K
after the claims filed for the previous week were revised upwards by 4000. Continuous claims
declined to the lowest level in a year, now at 4399K. The trade deficit for August widened more
than forecast to $46.3 billion as cheaper import prices and increased demand for foreign autos
and capital equipment overshadowed the gains by exports. Exports gained 0.2% compared to
2% in July, surpassed by a 2.1% increase in imports in August. Goods and services imported
grew by 2.4% and 0.5% respectively, and while exports of goods remained flat, services
exported gained 0.7%. The trade deficit can be narrowed only when the U.S., whose economy
is mainly service oriented, starts meeting its own demands for goods and increases export of
services. In other reports, the wholesale price of goods excluding food and energy showed a
sluggish 0.1% growth for a second month as inflationary pressure decreases. The Producer
Price Index excluding food and energy prices grew by merely 0.1% in September, reported the
Labor Department. The Fed expressed in its last meeting that is will aim its monetary policy at,
among other things, increasing inflation expectations. The economy seems to be in a lull, where
neither inflationary nor deflationary pressures are strong enough to cause any change in its
current state. Interest Rates Treasuries continued to slide on increased supply, pushing yields
higher across the curve (click on chart to enlarge). Long termed Treasuries fell the most as seen
in the 10 bp increase In the yield on the 30-Yr, which ended at 3.92%. The benchmark bond fell
as its yield pushed 7 bp higher to 2.51%. The belly of the curve rose as the 5-Yr ended 7 bp
higher at 1.18%. The 2-Yr yield fell 2 bp to .38% to push the front end of the curve slightly
higher. (chart ) Inflation expectations, as indicated by the yield differential between the 10-Yr
Treasury and an equal maturity inflation indexed bond (TIPS), widened 8 bp to 2.14%. (click on
chart to enlarge) (chart ) Yields were mixed across the Atlantic. France’s benchmark 5-Y bond
ended flat at 1.65%. Germany’s 5-Yr bonds slipped slightly as its yield ended a basis point
higher at 1.43%. Yields were mixed among the peripherals nations. Yield on Portugal’s
benchmark bond tightened 10 bp to 4.65%. Ireland’s 5-Yr bond yield gained and pushed its
yield 21 bp lower at 4.91%. Greece bond ended its rally as its yield gained 24 bp to 8.78%.
Spain’s 5-Yr bond cut its losses from Wednesday as its yield slipped 4 bp to 2.91%. Across
The Capital Markets Stocks slipped on poor economic data. The S&P retreated 0.45 to
1173.81. NASDAQ ended 0.3% lower at 2435.38. The VIX index gained higher to 19.88. The
DXY dollar index weakened further to 76.542. Euro advanced against the dollar to 1.4084. The
cable (GBP/USD) gained to 1.6011. Gold continued to scale new heights as it ended at
1381.15.’
Why I'm Concerned About a Near Term Pullback in Stock Prices Soos Global Capitalist
[ The following is coming from a market optimist who talks earnings but fails to account for
quality as Davis infra; that of itself means he’s not the brightest bulb on the planet, but he at
least recognizes the lack of rationality here which, by the way, preceded the last several
crashes. ] ‘John Lipsky, the current First Deputy Managing Director of the IMF, taught me
something many years ago when we were colleagues at Salomon Brothers in a conversation
then about various countries in Europe that were part of the “Euro Convergence” process.
Regarding the extremely high marginal tax rates at that time in some of the socialist economies,
for example in Sweden where I believe it was in the 80% range, I recall discussing the seeming
disincentive for people to work when only 20 cents on the ‘dollar’ would stay in their pocket
while the rest would go to the government. I suggested that such a situation would likely lead to
high levels of unemployment….to which I recall John adding that not only could it lead to higher
levels of unemployment currently, but that the longer people stay unemployed the more
unemployable they become due to lost job skills, lack of training for new types of work and the
like - a potentially economically crippling process known as “hysteresis”. That conversation
parachuted back into my mind in recent days, partly due to the recent awful Non-Farm Payroll
data, and partly in reaction to the ongoing stratospheric levels of Jobless Claims and related
unemployment numbers. But beyond that, it’s also partly attributable to some considerations I've
had about the overall market activity which has been largely euphoric of late based on hopes for
Fed QE2, lower interest rates, more economic growth, weaker USD and higher commodity
prices. Specifically, while I have been, and remain, optimistic on equities for medium and longer
horizon portfolios, largely driven by my view of global economic growth in emerged and
emerging countries around the world especially in the context of infrastructure build up, I have
become much more cautious in putting additional cash to work, and in fact am concerned near
term about a meaningful pullback in stock prices. Why? For one, increased global market risk
and uncertainty. As I wrote last week in “Positioning for the Week Ahead: Navigating the Risks
and Opportunities in Choppy Market Waters”, the lack of a globally integrated response to the
quickly developing global ‘currency war’ presents the markets with, if nothing else, a significant
increase in risk…..risk of unilateral action by countries in defense of their economies a la:
• Japan’s intervention several weeks ago to devalue the Yen and last week’s
announcement of lower rates and of a ‘QE’ type fund, and
• Korea’s inaction this week by not hiking rates despite inflationary signs thereby choosing
to accept a bit of inflation rather than fight it with higher rates which would likely
strengthen their currency and hurt exports, and
• the US's Fed whose minutes from the September meeting that we got a glimpse of this
week clearly showed the Fed team standing on the dock ready to christen the QE2 as
it’s about to set sail.
Second, my perception that markets have allowed corporate earnings to provide a disguising
shadow on the underlying economic weakness that prevails in the US. With little in the way of
new economic data this week, most market participants have been rightfully focused on the
earnings parade….and some parade it’s been. From Alcoa (AA), to Intel (INTC), to CSX, the
news both in the rearview mirror and ahead through the windshield has been quite good. And
that’s perhaps one of the strongest supportive factoids for my still cautiously, patient optimism.
But when one considers the depth and breadth of the US economic slump, and when one
contemplates the risks of “hysteresis” despite the remarkable flexibility of the US labor force, it
doesn’t take long to aggressively question the soundness of the logic that has driven current
market valuations, the arguably flawed causal relationship of QE>>lower interest rates>>more
domestic economic growth>> higher equity prices. Hysteresis could put a serious kibosh on the
economic growth link in that chain.
Third, next week’s data calendar will probably not provide much news on the economic front to
alter the perception of just how deep of a hole the US economy is in. We do get Industrial
Production and Capacity Utilization, which together is unlikely to show much improvement
especially when you have a look at where we are now vs where we’re coming from:
(Source: ChartFacts.com) click to enlarge (chart) We’ll also get Housing Starts and Permits…
and there too, look at the reality of what “improvement” has to mean in order to make a dent in
what is an awful situation. (chart) Compounding that, of course, has been this week’s leap-
frogging of the foreclosure fiasco to the front pages. Banks across the land have been freezing
foreclosure proceedings, cries are being heard from DC and beyond for full blown investigations
of banks that could result in large penalties, and one likely result could be a protracted major
headwind for any improvement in the ailing housing industry. What now? In the context of open
kimono, I’ve been adding equity exposure for the past several months with a “buy on dip”
tactical approach, focusing on companies involved in global businesses with strong balance
sheets, good dividend payouts, aggressive expansions into Emerging Markets countries, and in
industries that are less likely to fall subject to intense new regulatory regimes. The higher
markets have gone, though, the slower I’ve been to invest on any dips. And at these levels, I’m
considering not just a pause in buying, but possibly some profit-taking with the goal of re-
entering at lower levels. Bear in mind, this article is in no way meant to be considered
personalized investment advice, but rather a thought-provoking note on issues that investors
ought to consider in determining their own investment decisions that are uniquely appropriate
for their financial profiles and risk tolerances. It’s meant to broaden the dialogue in terms of what
should drive investment decisions beyond a simple reflex reaction to QE, whether it will or won’t
happen, and in terms of including the broader landscape of US economic travails in addition to
the global currency and policy tensions. In sum, despite my longer term optimism, current
events have raised my “concern-ometer”. To put it colloquially, perhaps next to “Hysteresis” in
the dictionary, a simplified, figurative definition could read: the needle that popped the bubble.
Look for updates as things evolve.
Disclaimer: Soos Global Capital Advisors, LLC (“Soos Global”) is a New York state registered
investment adviser located in Harrison, New York. Soos Global may only transact business in
those states in which it is registered, or qualifies for an exemption or exclusion from registration
requirements. The publication of Soos Global’s opinions on the Internet should not be construed
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effect transactions in securities, or the rendering of personalized investment advice for
compensation, over the Internet. Any subsequent, direct communication by Soos Global with a
prospective client shall be conducted by a representative that is either registered or qualifies for
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For information pertaining to the registration status of Soos Global, please contact the state
securities regulators for those states in which Soos Global maintains a registration filing. A copy
of Soos Global's current written disclosure statement discussing Soos Global’s business
operations, services, and fees is available from Soos Global upon written request. Soos Global
does not make any representations or warranties as to the accuracy, timeliness, suitability,
completeness, or relevance of any information prepared by any unaffiliated third party, whether
linked to Soos Global's opinions or incorporated herein, and takes no responsibility therefor. All
such information is provided solely for convenience purposes only and all users thereof should
be guided accordingly. Past performance may not be indicative of future results. Therefore, no
current or prospective client should assume that future performance of any specific investment
or investment strategy (including the investments and/or investment strategies recommended or
undertaken by Soos Global) made reference to directly or indirectly by Soos Global in its
opinion, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal
the corresponding indicated performance level(s). Different types of investments involve varying
degrees of risk, and there can be no assurance that any specific investment will either be
suitable or profitable for a client or prospective client’s investment portfolio. Historical
performance results for investment indices and/or categories generally do not reflect the
deduction of transaction and/or custodial charges, the deduction of an investment management
fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing
historical performance results. Please remember that different types of investments involve
varying degrees of risk, and there can be no assurance that the future performance of any
specific investment or investment strategy (including those undertaken or recommended by
Soos Global), will be profitable or equal any historical performance level(s). Disclosure: LONG:
INTC, AA and various ETFs and stocks in S&P, Europe, Asia and Latin America.’
Market Outlook: Will This Party Continue? [ Here’s another weak sister who recognizes
something amiss; viz., market iinsanity / scam / fraud, etc., as we’ve seen in prior
manipulations preceding crashes. ] Ramsden ‘If the last month or so in the market has
been something of a party, we would like, for good reason, the party to never end. If the
last twelve months of the economy has been something of a revival, we want that revival,
soft as it may be, to continue. The past week has shown the collective’s desire most
clearly. While the Fed’s facial expressions have hinted at a willingness to keep the party
going, the market has read into these messages and celebrated without pause. While the
broader economy will manifest its disposition in upcoming reports, there are early
glimpses offered by quarterly corporate earnings, now trickling in with intelligence from
the trenches. The markets have taken in these reports, mixed them with the remembered
images of a smiling Fed, and decided that the party continues. But the festivity seems
based on hopes that are not altogether wholesome, and such parties all too often don’t
end on a high note. That quantitative easing is on its own unlikely to provide a
substantial economic boost has been reported and analyzed at length, including here,
and the market probably recognizes the risk. No matter, more than in anticipation of
economic lift the market seems to be trading on dollar devaluation, (also associated with
QE2). We of course realize, but perhaps turn a blind eye to the fact that the Fed is not
acting in isolation, and that a cheaper dollar necessarily must be cheap in relation to
some other currency. Few if any central banks seem nowadays happy to sacrifice theirs
for the benefit of ours, and a point will come when the declining dollar will no longer
suffice to prop up stocks. When this occurs, we will likely become more focused on
fundamentals, and coming on the heels of a “Great Recession” and two years of cost-
cutting to the bone, such analysis should lead us to revenues head-on. With this in mind,
we can have a peak at what may lie ahead for revenues and the economy, watching for
signals that the early bellwethers of quarterly reporting season have to offer. Let’s take,
for example, JP Morgan (JPM) (see earnings call transcript here): On a 15% revenue
decline from a period that was to begin with not particularly stellar, the company
managed to somehow still increase earnings and still beat analyst estimates. Cutting
compensation helped, no doubt, but what helped even more was an (arbitrary) reduction
of loan loss reserves… Pause to consider: Is it not a contradiction of perspectives when,
on one hand, corporate revenues for a diversified financial organization decline
substantially, while on the other hand, the company feels good enough about economic
prospects to deem its loan portfolio quality substantially improved? Does anyone see the
irony? It’s ironic, isn’t it? The broader market didn’t get it: Up strongly all day, post-
announcement, while JP Morgan shares themselves traded down. Such bumping and
grinding and disoriented stuttered-steps are bound to occur in the wee hours, when the
group gets all pointless and sloppy. When a stock that is driving the market up
concurrently moves in the opposite direction, the party is beginning to get unruly.
Disclosure: No positions.
BUSINESS / NATIONAL / WORLD HEADLINES [ The news is rapidly unfolding in

such a way as to merge all three. ]
Will the New Debt Commission Back a VAT? Fox Business | Some fear they smell
a VAT, akin to a new national sales tax within the federal debt commission’s
upcoming report on how to cut the U.S. deficit.
US Dollar Plunges, Gold Soars To New Record, Sold With $200+ Mark Ups Steve
Watson | The US dollar plunged once again today as the currency continues
to be battered by rumours that the Federal Reserve will announce plans to
buy $1 trillion of government debt in the form of “monetary easing”.
Has Bernanke Gone Too Far? Nicholas Santiago | If the Federal Reserve Bank is
going to keep printing money, traders will take advantage of the one asset
class that will be directly affected. That asset class is the precious metals–
GOLD, that is.
Peter Schiff: “Wall Street writes US law” Financial institutions on Wall Street are
benefits according to the WSJ.
Russia to build nuclear power station in Venezuela Russia agreed on Friday to

build Venezuela’s first nuclear power station after talks between Presidents
Dmitry Medvedev and Hugo Chavez in the Kremlin.
France on brink of fuel shortage as strike bites: Sarkozy sends in police to break
fuel blockade Strikes spread to all France’s refineries today, raising the
prospect of a nationwide fuel shortage.
Trillions In Debt: Will The Real Cost Of ‘TARP’ Soar Into Quasrillions? The
Troubled Asset Relief Program (TARP) ended in September. Since then,
Washington has been trying to prove that bailing out Wall Street with
taxpayers’ money prevented the total collapse of the economy.
Pachy stays It’s a win-win for us, with the climate guru staying in place as head of
the IPCC.
Dollar fall sparks stability warnings The dollar tumbled against most major
currencies on Thursday, prompting warnings that the weakness of the
world’s reserve currency could destabilise the global economy and push
other countries into retaliatory devaluations to underwrite their exports.
The Real Danger From the Foreclosure Crisis The foreclosure scandal will likely
depress the real estate market, as clear title for millions of homeowners
comes into question.
Deliberately Engineered Economic Collapse in USA Leading to Martial Law Phil

Brennan | As the Crisis phase swings into full economic melt down, the US
Military will take over more and more of the infrastructure as cities can no
longer afford to employ staff.
Celente: Bankster Bailout Made Banks Bigger Infowars.com | The gap between the
rich and the poor is the widest in the US over any industrialized nation,
Gerald Celente points out.
CBS Report On 9/11: Ground Level Explosion Caused WTC To Collapse Paul
Joseph Watson | Yet another video describing bombs in the World Trade
Center suppressed by NIST.
New FDA regulations to destroy small organic farms David Gutierrez | A proposed
law to bring farms more directly under FDA supervision could be the death
of small organic
Irish Family Baby Returned Kurt Nimmo | Jonathan Irish appeared on the Alex
Jones Show this evening and said his infant daughter, Cheyenne, was
returned to him and his fiancé, Stephanie Taylor.
Nearly Half of All Americans Believe “The Federal Government Poses An

Immediate Threat To The Rights And Freedoms Of Ordinary Citizens”
Washington’s Blog | A new Gallup poll shows that a majority of Americans
view the government as too powerful and obtrusive.
Drudge: First Lady Campaigns Inside Polling Place Drudge Report | First lady
Michelle Obama appears to have violated Illinois law — when she engaged in
political discussion at a polling place!
Judicial Watch: Pelosi took 85 trips on military aircraft, cost taxpayers $2.1
million Washington Examiner | Speaker of the House Nancy Pelosi and her
family, staff took 85 tax-paid trips on military aircraft between March 2009
and June 2010, according to new documents uncovered by Judicial Watch.
WTC Collapse Under Fresh Scrutiny After Explosive Dust Samples Found
Evidence indicating that the collapse of the World Trade Center was a
controlled demolition has been propelled back under the national spotlight
following the University of Copenhagen’s announcement that dust obtained
from the rubble of the twin towers contains evidence of highly explosive
material.
Full 27-Hour Money Bomb Special Now Available For Prison Planet.tv
Subscribers! The jam-packed 27-hour Money Bomb special featuring never
before seen interviews with Paul Craig Roberts, Katherine Austin Fitts, Lord
Christopher Monckton, Sherri Tenpenny, Jeffrey Smith, Rev. Clenard
Childress, Alan Watt, and others is now available for Prison Planet.tv
subscribers for download.
Ventura In heated 9/11 Truth Debate: WTC “Didn’t Collapse, It Exploded” Former
Governor of Minnesota, ex-Navy SEAL and retired pro-wrestler Jesse
Ventura raised some important unanswered questions regarding the 9/11
attacks in a heated exchange on national television yesterday.
Ron Paul: Government Prevents the Correction On Thursday, Congressman Paul

was interviewed on Fox Business concerning government spending and
waste.
CBS Report On 9/11: Ground Level Explosion Caused WTC To Collapse Yet
another 9/11 video that NIST tried to block from being released has emerged
discussing bombs in the World Trade Center that led to the collapse of the
twin towers, indicating once more that the organization attempted to preside
over a cover-up to hide evidence of secondary explosives.
Drudgereport: Bernanke: Economy growing too slowly to reduce unemployment...

'Further Action' With Too-Low Inflation...
Federal deficit tops $1 trillion - again...
Consumer Sentiment Falls...
Damage From Mortgages Spreads...
BANK OF AMERICA shares fall up to 6.5%...
China to USA: We are not to blame for your problems...
Dollar fall sparks stability warnings...
Currency tensions persist...
17 TROOPS KILLED IN PAST 3 DAYS...
BANK OF AMERICA Downgraded by Bond Market...
Stock Selloff Adds to Pressure on Banks...
Washington Policy Makers Resist Calls for a Big Fix in Foreclosure Crisis...
Fuel pipeline to Paris cut as protests escalate...
NEW NORMAL: Long Recovery Looks Like a Recession (Depression) ...
Applications for jobless benefits rise to 462,000...
'Higher-than-expected'...
September home foreclosures top 100,000 for first time...
Inflation, Trade Deficit Surge Higher...
Dollar tanks as Bernanke speech looms...
Afghans allege abuse at secret US jail...
13 troops killed in Afghanistan -- in two days...
Fed Mulls Raising Inflation Expectations to Boost Economy...
Gold Hits Another Record...
Pension protests escalate in France...
Sarkozy stands firm...
Strikes shut Eiffel Tower...
Blankley: The White House Bunker So Soon?
Comment on: The O'Donnell-Coons debate and survival of the fittest at 10/14/2010
10:07 PM EDT
O'Donnell, evolved The O'Donnell-Coons debate and survival of the fittest
(Washington Post) [ Or might that be ‘sh******, or flittest, … says Stromberg:
O'Donnell is... wow … I second that emotion … Wow!
Test yourself to find out how much you know about Sarah Palin. Take the quiz
and after, check out The Washington Post's 'Five Myths about Palin.' (Washington
Post) [ Geeh! I scoured the quiz / 5 myths and nowhere did I see the obvious
myth; viz., that she really had a brain. Maybe gal pal pol protégé o’donnell can
help her out … a few mysterious words, a slimy newt (gingrich) in a caldron of
b*** s*** , and voila … a new reality which is what o’donnell herself is sorely in
need of … O'Donnell, evolved Milbank: She didn't mention mice with human
brains in Wednesday's debate. But she said silly things. Stromberg: O'Donnell
is... wow The CNN host, moderating the long awaited Delaware senatorial debate
Wednesday night, was trying to get the Republican nominee to talk about her
1998 statement on the Bill Maher show that "evolution is a myth."
"Do you believe evolution is a myth?" Blitzer asked.
"I believe that the local ... " O'Donnell began, then started anew. "I was talking
about what a local school taught, and that should be taught, that should be
decided on the local community."
"Do you believe evolution is a myth?" the moderator repeated.
"Local schools should make that decision."
"What do you believe?"
"What I believe is irrelevant."
"Why is it irrelevant? Voters want to know."
"What I will support in Washington, D.C. is the ability of the local school system
to decide what is taught in their classrooms," O'Donnell repeated.
The answer, though, was obvious: Of course she believes in evolution; she is a
product of evolution herself. She has evolved from a very odd woman who spoke
about the evils of masturbation and of mice with fully functioning human brains
and of her experience in sorcery (but she didn't join a coven!). …]
Comment on: U.S.-led forces aiding reconciliation talks between Afghan

government, Taliban at 10/14/2010 9:57 PM EDT
U.S.-led forces aiding reconciliation talks between Afghan government, Taliban
(Washington Post) [ Yeah! I think quite a few people are saying none too soon,
and then there’s the american defacto bankruptcy thing … and then when
america can gracefully or ungracefully vacate other peoples lands … sounds like
a plan! Drudgereport: 13 troops killed in Afghanistan -- in two days... ]
Afghan spending faces scrutiny (Washington Post) Wow! Talk about a little bit
late for that. Oh, right … they were busy spending money the nation doesn’t have
on other things. Congress extends war funding for Afghanistan Baltimore Co.
Independent Examiner | Congress voted to extend funding for the war in
Afghanistan by an additional $59 billion late on Tuesday. Disappearing Act: $8.7
Billion of Iraq Development Money Missing Kurt Nimmo | Government says it is
all the fault of shoddy accounting practices. 3 U.S. troops die in Afghan war's
deadliest month (Washington Post 7-30-10) World News Digest: a Worth it? 4 U.S.
troops die in bomb blast in south Afghanistan (AP, July 24, 2010) ‘There will be
blood’ … whoops, that’s oil, wrong movie theme. This one’s about heroin trade. 2
More Americans killed in copter crash in Afghanistan (AP) Not so much, unless
they rename Tony Montana, to To Mon el Swahili and recut ‘Scarface’ to reflect an
Aghanistan Heroin connection, or similarly change ‘Hurt Locker’. It’s a good thing
for the military that IQ tests aren’t required. Three U.S. Embassy guards killed in
rocket attack in Baghdad's Green Zone (Washington Post) Big yes there since
‘The Green Zone’ got Hollywood movie status. Bomb near Iraq mosque kills 15;
U.S. soldier dies in road blast (Washington Post, July 22, 2010) But guess what …
none of that’s worth it; even for volunteer soldiers whose suicide rate is
unprecedented owing to this pointless, meaningless conflagration for the sake of
the military industrial complex and the enrichment of the few; and, to which Pat
Tillman was to attest which got him fragged.
Comment on: Lack of proper mortgage paper trail could leave big banks reeling
again at 10/14/2010 9:13 PM EDT
Debacle threatens economy - Lack of proper mortgage paper trail could leave big
banks reeling again
oy (Washington Post) [ Could? Kind of brings to mind the old wives’ tale that
ghosts are spirits that don’t realize they’re already dead … I mean, let’s get real! ]
Comment on: Worries over fast-tracked foreclosures send bank stocks

plummeting at 10/14/2010 9:04 PM EDT
Foreclosure worries shock bank stocks (Washington Post) [ Come on! If it was
only that, they’d be jumpin’ for joy. The fact is the economic realities are far more
dire than the pre-election spin; and then there are the toxic assets / paper /
securities now marked to ‘anything’ as per legislated FASB rule change. The last
debacle has never really ended and Davis explains, infra, how these stock rallies
are all hot air. ]
Comment on: 5 Myths about Sarah Palin at 10/14/2010 9:39 PM EDT

Test yourself to find out how much you know about Sarah Palin. Take the quiz
and after, check out The Washington Post's 'Five Myths about Palin.' (Washington
Post) [ Geeh! I scoured the quiz / 5 myths and nowhere did I see the obvious
myth; viz., that she really has a brain. Maybe gal pal pol protégé o’donnell can
help her out … a few mysterious words, a slimy newt (gingrich) in a caldron of
b*** s*** , and voila … a new reality which is what o’donnell herself is sorely in
need of … O'Donnell, evolved Milbank: She didn't mention mice with human
brains in Wednesday's debate. But she said silly things. Stromberg: O'Donnell
is... wow The CNN host, moderating the long awaited Delaware senatorial debate
Wednesday night, was trying to get the Republican nominee to talk about her
1998 statement on the Bill Maher show that "evolution is a myth."
"Do you believe evolution is a myth?" Blitzer asked.
"I believe that the local ... " O'Donnell began, then started anew. "I was talking
about what a local school taught, and that should be taught, that should be
decided on the local community."
"Do you believe evolution is a myth?" the moderator repeated.
"Local schools should make that decision."
"What do you believe?"
"What I believe is irrelevant."
"Why is it irrelevant? Voters want to know."
"What I will support in Washington, D.C. is the ability of the local school system
to decide what is taught in their classrooms," O'Donnell repeated.
The answer, though, was obvious: Of course she believes in evolution; she is a
product of evolution herself. She has evolved from a very odd woman who spoke
about the evils of masturbation and of mice with fully functioning human brains
and of her experience in sorcery (but she didn't join a coven!). …
Thrill Ride Thursday: Can the Dollar Drop Fast Enough to Keep the Markets Up?
Davis [ The following from Davis is really the key to understanding the
The Shape of Market Bubbles, Including Gold [ In addition to the frauds on wall
street, the fed’s ‘forever blowing bubbles’ … you’ve heard that song before
… I’m sure of it! ] (Short Note: On June 23rd technical analyst and CNBC
contributor Daryl Guppy made this prediction: Shanghai Index to Fall to
2,300 & 'Rapidly' Rebound. Click the prediction link to read his rationale. In
retrospect we see that Guppy's forecast wasn't far off. The index hit its
recent low of 2363.95 on July 5th and gained 20.02% as of yesterday's close.
A 20% gain in a little over three months definitely qualifies as a rapid
rebound.) Short: ‘In my recent reviews of major worlds markets, I included a
chart of the amazing bubble in the Shanghai Composite Index. In this post
we'll build an overlay of four major bubbles across market history to see the
variety of shapes a bubble can take. But first let's take a long view of the
index. Incidentally, the index's latest close was 2586.21. So a fall to the area
Guppy mentioned is about a 10% correction from this point. [chart] The next
chart centers the Shanghai Composite. The peak is the center of a 3000-
market day timeline. Markets are open approximately 250 days per year, so
this is a snapshot of a little over eight-and-a-half years with plenty of room
left to track the future behavior. The dramatic rise took place over about one
year with a dramatic collapse of about the same duration. The symmetry of
this these two years is astonishing and, as we'll see, not necessarily
characteristic of bubbles.[chart] Now we'll add the Nasdaq Tech Bubble. The
Nasdaq was a bit less aggressive in the early stages of bubble formation,
but the collapses are remarkably similar.[chart] The next chart adds the Dow
of the late Roaring Twenties and Crash of 1929. Here we see a more gradual
bull market over the first five years with a major acceleration occurring in
the 12-13 months prior to the peak. The 1929 Crash took the Dow to the
legendary lows that the Nasdaq nearly equaled 70 years later. But the Dow
decline lasted a good six months longer before beginning a sustained bear-
market rally. [chart] The Nikkei 225 bubble is one I periodically feature in an
overlay with the S&P 500, where it looks amazingly steep as the central
pattern of a 40+ year timeframe. But in the context of this series, the Nikkei
peak on the last market day of 1989 was far more gradual in both the making
and unwinding. The first year of the decline, however, was as savage as the
other three. [chart] Bubbles happen, and they usually go unrecognized by
the majority of market participants until the late stages. The left side of the
bubble is usually more gradual than the collapse, although the incredible
rise of the Shanghai market is a notable exception. People often use
alphabet metaphors for recoveries: V-shaped, W-shaped and L-shaped. It's
too soon to characterize the Shanghai Index, but the others most closely
resemble an "L" over the timeframe of these charts. Footnote: Is Gold a
Bubble? It doesn't appear to be. While the rise somewhat resembles the
Nikkei leading up to the 1989 peak, Gold doesn't come anywhere close to the
bubble shape of the Nasdaq and Shanghai examples we've reviewed. [chart]
Is Gold cheap? No. Can it continue higher from here? Theoretically, yes. In
reality, only time will tell. Disclosure: No positions’
The 'Rubber Band Rule' Proves Pretty Effective TraderMark ‘On Wednesday I
noted that the market was approaching levels above the 13-day moving average
where it typically corrected from during this rally. There was still a bit of room to
the upside (about 0.3%-0.7%) but the rubber band was being pulled quite
strongly. Effectively this is a simplistic way to speak of 'mean reversion.' For now
the pattern continues.... buying comes in on the pullbacks to the 13 day, and then
the market rallies and gets 2-3% above the 13 day, and that is where selling
and/or consolidation occurs. It is nothing if not mechanically (silicon) consistent.
One time this will be wrong. The pattern is the pattern... until it is not. Then you
get havoc, and finally the bulls will get trapped. Of course, you never know which
time will be the change. I thought it would have happened by now, but we are not
operating under normal quasi-free market rules (rarely have we the past 3 years
but now its a level of extreme beyond compare). So historical rule books are not
working as well in 2008-2010. (Chart) As of now, S&P 1158 is the 13 day and it
should move up tomorrow a few points. At some point QE is priced into the
market, and I also have thought it would have happened by now, incorrectly. So
each time we have an event like Bernanke talking tomorrow morning, we have to
see if the market shrugs it off. There *have* been some divergences the past 24
hours - yesterday I noted the bond market (longer duration) reversing, and today
even as the dollar is bludgeoned yet again we are not getting the "buy anything
that moves" trade. Are those warnings signs or irrelevant? Obviously in 2 weeks
it will be easier to tell you. I can print a litany of warning signs ... 93% of stocks in
S&P 500 over 50 day moving average, rampant speculation in (pardon my french)
s*** stocks, lack of leadership from former generals (the cloud computing
stocks), and now rumors planted by banksters that Yahoo is going to be bought
out (congrats to the CEO for $37M pay day for accomplishing no value add for
shareholders by the way), or the latest buyout rumor: EMC Computer which is a
fine $40B+ company. Surely Oracle will be happy to spit out $50B+ to buy it...
after all, it's only money and we're printing more every second. But lots of those
signs have been around for a while, and QE has overwhelmed everything. We
need to see an event such as the speech tomorrow in which the market does not
bid up risk assets on news EVERYONE already knows to mark any serious selling
point... combined with a break of this 13 day MA (in my opinion). When the QE2
meme loses its potency, we finally have a change. As an aside, let me keep
repeating - so it is not lost in the day to day - this will end badly. Frankly almost
every 'solution' of the past 3 years brings with it terrible consequences - because
we refuse to take our medicine. We just don't know when "it" happens... all we are
doing is repeating the same policies that got us NASDAQ 99 and real estate 2005,
and commodities 2007. We are just making the bets bigger and more dangerous,
and kicking the can of yarn (which each time it rolls, it grows). I've written many
times when we look back in a decade Bernanke will be viewed in the same harsh
light as Greenspan... even though "the market" worshiped Greenspan when he
was doing those things, just as "the market" worships Bernanke. Look at these
PE firms borrowing money to reward themselves as if its 2006 again, look at the
hedgies bidding up risk assets with free money, look at the banks cost of capital
near zilch (and they still can't get out of their own way). Everyone is getting 'rich'
off the risk assets (woo hoo) - why would "the market" not love central bankers
like this? Why am I talking like this? I should be celebrating like a good ole Wall
Streeter! But as a common American - you should be anywhere from disgusted to
fearful of what these people are doing. Just as Greenspan refused to allow a real
(cleansing) recession under his watch, and instead created a pressure valve that
once blown brought down the entire U.S. financial system - Bernanke is painting
the exact same portrait. But like good Romans, we are supposed to enjoy the
orgy while it happens and let tomorrow worry about itself - Cramerican style. Just
don't lose sight of the long run - the consequences of this 'recovery' are going to
be debilitating. My only shock is as we repeat the same Fed induced bubbles now
on 5-8 year cycles, no one questions those who bring us these issues repeatedly
- instead we give them even more power. Quite amazing really. Disclosure: None’
Economists Herald New Great Depression The world is currently experiencing the
modern day equivalent of the Great Depression, according to a prominent
economist who has added his voice to scores of others now forecasting ongoing
economic doom on a scale not seen since the 1930s.) , and my position and that
of demographer Dent (This is a global depression. This is a secular bear market
in a global depression. The past up move was a manipulated bull (s***) cycle in a
secular bear market. This has been a typically manipulated bubble as has
preceded the prior crashes with great regularity that the wall street frauds and
insiders commission and sell into. This is a typical wall street churn and earn
pass the hot potato scam / fraud as in prior crashes’. This national decline,
frauds et als are criminally prosecuted, jailed, fined, and disgorgement imposed.
Krugman: It's All Downhill From Here Cullen Roche Love him or hate him Paul
Krugman has been awfully right with regards to the macro picture in the last few
years. He’s one of the rare economists who had the foresight to see the housing
bubble and the likelihood of economic downturn that would result from it.
Krugman recently caused a stir when he said the US economy was headed for the
third depression. He isn’t back down from that outlook:


really is.

sustenance.

and 2012). ]
Wall Street: The Speed Traders - 60 Minutes - CBS NewsOct 10, 2010 ... 60
Minutes on CBS News: Wall Street: The Speed Traders - Steve Kroft gets a
rare look inside the secretive world of "high-frequency trading ...
www.cbsnews.com/video/watch/?id=6945451n [ CBS 60 minutes should
be lauded for ‘daring to go where no man dare to go before’, particularly
pre-election. Video Robot Traders of the NYSE ‘In a secret new building in
new jersey ‘( meaningfully lawless, pervasively corrupt, multi-ethnic mob-
infested/controlled jersey /
http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenalty
ofperjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm / ,
the perfect venue for this fraud )’, high-speed computers decide which
stocks to buy and sell. Could this kind of automated "trading floor" lead to
Wall Street's next "flash crash"?’ ( I’ve included this web site archived file
of the transcript of the segment with links to the CBS videos, here
http://albertpeia.com/highfrequencytradingcbs60minutes.htm ) I add the
following personal observation with regard to a comment made by the only
‘high frequency trader’ who agreed to be interviewed; viz., that the
’process’ was all ‘math’. Unfortunately, investing, investments, security
analysis / valuation, is not just math. Indeed, in my MBA Finance ( NYU
GBA, eve program which included professors actually successfully
working on the street ) I can attest to the complexity of the math /
algorithms underlying the financial theory of investing for which there were
no ‘short-cuts’ to understanding (Modigliani / Miller, Nobel Prize Winners ,
for example, were a royal ‘pain in the a** ’, the material being far more
complex than the far more voluminous but much more easily synthesized
law school fare.) The problem with said theory is that it’s just not how it’s
done on wall street but rather, geared to being descriptive after the fact
because invariably, if used as an investing approach you would find
yourself a loser or at best, a tandem market performer (‘Random Walk
Down Wall Street’, the ‘Random Monkey’, etc.). Day to day, week to week,
the ‘random stroll’ is hard to dispute; yet, behind the scenes a different
story of manipulation unfolds; which manipulation has become extremely
efficient via lightning speed computerized churn and earn trades, and
hence, very lucrative but debilitating to the nation. The churning and
earning (commissions) is the end in itself. The math for streams of
payments and alternatively receipts, and present values thereof is indeed
math, and an actual application of same would be the insolvency, for
example, of social security, etc.. I had the fortunate experience to have met
with a successful wall street executive (chairman, executive committee,
institutional research / brokerage house) who was talking up a career for
me on wall street and whom I thought highly of owing to his
accomplishments and candor, ie., what you read in , for example, the wall
street journal, was total b*** s***, etc.. ( In his world there were few if any
grey areas; ie., among others, there were only two kinds of people; viz.,
people with money, and people who want money. Of course, I knew this to
be false based upon such individuals as my Pastor who Confirmed me and
who easily could have been a lawyer, uncorrupt judge, etc., and of times
past in the u.s. and no longer apposite a career soldier, law enforcers,
teachers, artists, etc.). The point is, wall street wasn’t straight then, and far
worse, certainly not today. No, the high frequency trades are a scam of
great modern day proportion, which eat into the productive capabilities and
value of the nation which is set forth elsewhere on my site and evidenced
by this continuing debacle and national decline today. A good programmer
can easily mask and obfuscate the scam with seemingly lightning fast
moves which purport to be rational, but are but symptomatic of an
economically (self-)destructive exercise for all but the greedy criminally
insane on wall street today. As, if not more, important for civilized society
is an unwillingness to do anything for money (ie., fraudulent wall street,
mob, drug cartels, criminals, etc.; which of course is the problem
confronting america particularly, and the world generally. ]
Palestinians counter israeli offer on settlements (Washington Post) [ The

Palestinians, unlike the lawless israelis are cognizant of u.n. resolutions,
prior accords, international law, etc., in their proposal. ]
Parker: The economic crisis was an 'inside job' (Washington Post) [ And even
worse, the f***-up is still a continuing ‘work-in-progress’ … really … they
haven’t a clue … not even the slightest idea what they’re doing. … Alex
Jones: Total Economic Implosion and Bondage by Design It’s here where I
part ways with Jones et als inasmuch as, though they will attempt to have
same serve their typically nefarious ends, these ‘so-called elites’ (there
really is no such thing in this worldly reality except in their own warped
minds) are but incompetent vegetables (Jones gives them much too much
credit, although their incompetence does play a significant role in this
pathetic state of the world), but indeed many of them criminally insane and
who should be incarcerated for real crimes. ] Infowars.com | The global elite
have engineered a total economic collapse. ] Trying to assign blame to
either Democrats or Republicans is pointless. Everyone is culpable.
Thrill Ride Thursday: Can the Dollar Drop Fast Enough to Keep the Markets Up?
Davis [ The following from Davis is really the key to understanding the
The Shape of Market Bubbles, Including Gold [ In addition to the frauds on wall
street, the fed’s ‘forever blowing bubbles’ … you’ve heard that song before
… I’m sure of it! ] (Short Note: On June 23rd technical analyst and CNBC
contributor Daryl Guppy made this prediction: Shanghai Index to Fall to
2,300 & 'Rapidly' Rebound. Click the prediction link to read his rationale. In
retrospect we see that Guppy's forecast wasn't far off. The index hit its
recent low of 2363.95 on July 5th and gained 20.02% as of yesterday's close.
A 20% gain in a little over three months definitely qualifies as a rapid
rebound.) Short: ‘In my recent reviews of major worlds markets, I included a
chart of the amazing bubble in the Shanghai Composite Index. In this post
we'll build an overlay of four major bubbles across market history to see the
variety of shapes a bubble can take. But first let's take a long view of the
index. Incidentally, the index's latest close was 2586.21. So a fall to the area
Guppy mentioned is about a 10% correction from this point. [chart] The next
chart centers the Shanghai Composite. The peak is the center of a 3000-
market day timeline. Markets are open approximately 250 days per year, so
this is a snapshot of a little over eight-and-a-half years with plenty of room
left to track the future behavior. The dramatic rise took place over about one
year with a dramatic collapse of about the same duration. The symmetry of
this these two years is astonishing and, as we'll see, not necessarily
characteristic of bubbles.[chart] Now we'll add the Nasdaq Tech Bubble. The
Nasdaq was a bit less aggressive in the early stages of bubble formation,
but the collapses are remarkably similar.[chart] The next chart adds the Dow
of the late Roaring Twenties and Crash of 1929. Here we see a more gradual
bull market over the first five years with a major acceleration occurring in
the 12-13 months prior to the peak. The 1929 Crash took the Dow to the
legendary lows that the Nasdaq nearly equaled 70 years later. But the Dow
decline lasted a good six months longer before beginning a sustained bear-
market rally. [chart] The Nikkei 225 bubble is one I periodically feature in an
overlay with the S&P 500, where it looks amazingly steep as the central
pattern of a 40+ year timeframe. But in the context of this series, the Nikkei
peak on the last market day of 1989 was far more gradual in both the making
and unwinding. The first year of the decline, however, was as savage as the
other three. [chart] Bubbles happen, and they usually go unrecognized by
the majority of market participants until the late stages. The left side of the
bubble is usually more gradual than the collapse, although the incredible
rise of the Shanghai market is a notable exception. People often use
alphabet metaphors for recoveries: V-shaped, W-shaped and L-shaped. It's
too soon to characterize the Shanghai Index, but the others most closely
resemble an "L" over the timeframe of these charts. Footnote: Is Gold a
Bubble? It doesn't appear to be. While the rise somewhat resembles the
Nikkei leading up to the 1989 peak, Gold doesn't come anywhere close to the
bubble shape of the Nasdaq and Shanghai examples we've reviewed. [chart]
Is Gold cheap? No. Can it continue higher from here? Theoretically, yes. In
reality, only time will tell. Disclosure: No positions’
This is still an especially great opportunity to sell / take profits! Suckers’ rally into
the close to keep suckers suckered (easy for the wall street frauds to do with just
a mouse click / push of the button). The unemployment numbers again came in
decidedly worse than expected along with other negative data (and in the ‘wrong
direction’, that spin accorded ‘down but not as bad as before’ b*** s*** ) yet the
market has rallied like no tomorrow with used home foreclosure / distressed
sales, though abated owing to ‘foreclosuregate’, the other ‘heralded’ good news.
Moreover, the dumbo lemmings of Europe have jumped on the fraudulent defacto
bankrupt american crazy train propelled to the precipice also as if no tomorrow.
This is about keeping the suckers sucked in with the help of a market-frothing
pre-election debased dollar for favorable currency translation and paper (but not
real when measured in, ie., gold, etc.) profits which preceded the last crisis,
inflating a bubble as in the last crisis to facilitate the churn-and-earn, particularly
with computerized (and high frequency) trades and which commissions they’ll
get again on the way down. There is nothing to support these overbought stock
wall street shill, the senile Buffett is saying we’re still in a recession (depression).
Buffett: We're Still in a Recession [ Wow! A moment of lucidity from senile Buffet
which belies his prior ‘rosy wall street shill talk’, but his greater candor is
welcomed nonetheless although the ‘d’ (for depression) word is more appropriate
and accurate.] Roche ‘Warren Buffett disagrees with the NBER. He says we’re
still in a recession and likely to remain in a recession for quite a while. These
comments are far more tempered than the ones that were published last week. Of
course, my favorite part in this clip is where he says the U.S. government did the
right thing in responding to the crisis. They certainly did the right thing for
Berkshire Hathaway (BRK.A) shareholders. Whether or not they did the right
thing for America is a whole other story…’ [ And, of course we now know that it
wasn’t the right thing for america … The question inevitably becomes, ‘Who’s
manipulating who, what, and why? After all, we know defacto bankrupt america’s
pervasively corrupt! ]
which is now eating into real (not fake / falsified ) GDP along with other
unserviceable promises exacerbating the magnitude of the nations defacto
insolvency. ] See infra.
The 'Rubber Band Rule' Proves Pretty Effective TraderMark ‘On Wednesday I
noted that the market was approaching levels above the 13-day moving average
where it typically corrected from during this rally. There was still a bit of room to
the upside (about 0.3%-0.7%) but the rubber band was being pulled quite
strongly. Effectively this is a simplistic way to speak of 'mean reversion.' For now
the pattern continues.... buying comes in on the pullbacks to the 13 day, and then
the market rallies and gets 2-3% above the 13 day, and that is where selling
and/or consolidation occurs. It is nothing if not mechanically (silicon) consistent.
One time this will be wrong. The pattern is the pattern... until it is not. Then you
get havoc, and finally the bulls will get trapped. Of course, you never know which
time will be the change. I thought it would have happened by now, but we are not
operating under normal quasi-free market rules (rarely have we the past 3 years
but now its a level of extreme beyond compare). So historical rule books are not
working as well in 2008-2010. (Chart) As of now, S&P 1158 is the 13 day and it
should move up tomorrow a few points. At some point QE is priced into the
market, and I also have thought it would have happened by now, incorrectly. So
each time we have an event like Bernanke talking tomorrow morning, we have to
see if the market shrugs it off. There *have* been some divergences the past 24
hours - yesterday I noted the bond market (longer duration) reversing, and today
even as the dollar is bludgeoned yet again we are not getting the "buy anything
that moves" trade. Are those warnings signs or irrelevant? Obviously in 2 weeks
it will be easier to tell you. I can print a litany of warning signs ... 93% of stocks in
S&P 500 over 50 day moving average, rampant speculation in (pardon my french)
s*** stocks, lack of leadership from former generals (the cloud computing
stocks), and now rumors planted by banksters that Yahoo is going to be bought
out (congrats to the CEO for $37M pay day for accomplishing no value add for
shareholders by the way), or the latest buyout rumor: EMC Computer which is a
fine $40B+ company. Surely Oracle will be happy to spit out $50B+ to buy it...
after all, it's only money and we're printing more every second. But lots of those
signs have been around for a while, and QE has overwhelmed everything. We
need to see an event such as the speech tomorrow in which the market does not
bid up risk assets on news EVERYONE already knows to mark any serious selling
point... combined with a break of this 13 day MA (in my opinion). When the QE2
meme loses its potency, we finally have a change. As an aside, let me keep
repeating - so it is not lost in the day to day - this will end badly. Frankly almost
every 'solution' of the past 3 years brings with it terrible consequences - because
we refuse to take our medicine. We just don't know when "it" happens... all we are
doing is repeating the same policies that got us NASDAQ 99 and real estate 2005,
and commodities 2007. We are just making the bets bigger and more dangerous,
and kicking the can of yarn (which each time it rolls, it grows). I've written many
times when we look back in a decade Bernanke will be viewed in the same harsh
light as Greenspan... even though "the market" worshiped Greenspan when he
was doing those things, just as "the market" worships Bernanke. Look at these
PE firms borrowing money to reward themselves as if its 2006 again, look at the
hedgies bidding up risk assets with free money, look at the banks cost of capital
near zilch (and they still can't get out of their own way). Everyone is getting 'rich'
off the risk assets (woo hoo) - why would "the market" not love central bankers
like this? Why am I talking like this? I should be celebrating like a good ole Wall
Streeter! But as a common American - you should be anywhere from disgusted to
fearful of what these people are doing. Just as Greenspan refused to allow a real
(cleansing) recession under his watch, and instead created a pressure valve that
once blown brought down the entire U.S. financial system - Bernanke is painting
the exact same portrait. But like good Romans, we are supposed to enjoy the
orgy while it happens and let tomorrow worry about itself - Cramerican style. Just
don't lose sight of the long run - the consequences of this 'recovery' are going to
be debilitating. My only shock is as we repeat the same Fed induced bubbles now
on 5-8 year cycles, no one questions those who bring us these issues repeatedly
- instead we give them even more power. Quite amazing really. Disclosure: None’


really is.

sustenance.

and 2012). ]
ofperjury.pdf

Parker: The economic crisis was an 'inside job' (Washington Post) [ And even
worse, the f***-up is still a continuing ‘work-in-progress’ … really … they
haven’t a clue … not even the slightest idea what they’re doing. … Alex
Jones: Total Economic Implosion and Bondage by Design It’s here where I
part ways with Jones et als inasmuch as, though they will attempt to have
same serve their typically nefarious ends, these ‘so-called elites’ (there
really is no such thing in this worldly reality except in their own warped
minds) are but incompetent vegetables (Jones gives them much too much
credit, although their incompetence does play a significant role in this
pathetic state of the world), but indeed many of them criminally insane and
who should be incarcerated for real crimes. ] Infowars.com | The global elite
have engineered a total economic collapse. ] Trying to assign blame to
either Democrats or Republicans is pointless. Everyone is culpable.

October 5,
2010 (*see infra)

Dear Sir:


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) ******* (cell phone)
----------
of reference, including the files in the RICO action as indicated.
-----

Status: Delivered
Track and Confirm
Detailed Results:
90052
----
VIA Certified Mail this 5th day of October, 2010.
Signed: ___________________________________
Albert L. Peia

Market's optimism, earning data push stocks (Federal Reserve will take steps to
help economy, investors predict ) and push them higher (Washington Post)
[ Now if the article headline said ‘fed will take steps to help wall street’, I’d say
spot-on, but help the economy? … I don’t think so, and neither do other
astute analysts! ] infra:
US Dollar Plunges, Gold Soars To New Record, Sold With $200+ Mark Ups Steve
Watson | The US dollar plunged once again today as the currency continues
to be battered by rumours that the Federal Reserve will announce plans to
buy $1 trillion of government debt in the form of “monetary easing”.
Has Bernanke Gone Too Far? Nicholas Santiago | If the Federal Reserve Bank is
going to keep printing money, traders will take advantage of the one asset
class that will be directly affected. That asset class is the precious metals–
GOLD, that is.
Jobless Claims, Inflation, Trade Deficit Each Surge Higher Reuters | New U.S.
claims for jobless benefits rose last week, hardening the view the central
bank will pump more money into the economy, and keeping pressure on
Democrats poised to lose congressional seats in Nov. 2 polls.
US Dollar Plunges, Gold Soars To New Record, Sold With $200+ Mark Ups The US
dollar plunged once again today as the currency continues to be battered by
increasingly substantial rumours that the Federal Reserve will announce,
within the next three weeks, plans to buy $1 trillion of government debt in
the form of “monetary easing”.
Meet Danielle And Jim Plus 9: The Squatters Who “Reclaimed” Their Foreclosed
Home Over The Weekend Unfortunately, surreal stories like this will very
soon become daily news. As was pointed out yesterday, Simi Valley has just
seen the first case of a forced reclamation of a foreclosed home, after Jim
and Danielle Earl took their nine (9!) children, ages 9-23, and a locksmith and
broke into the six-bedroom house that had been foreclosed upon for lack of
payment, and on which the couple owed $880,000!
Dollar Falls to 15-Year Low Versus Yen on Fed Policy Outlook The dollar
depreciated below 81 yen, a 15-year low, and reached its weakest since
January against the euro before reports likely to fuel speculation the Federal
Reserve will ease monetary policy further.
The Questions That Swirl Around The Fed The question keeps swirling around
regarding the Fed and just how much Treasury paper they can buy from the
market under current rules. Our guess is about $1.7 trillion.
RealtyTrac Reports Q3 Foreclosures Hit All Time Record… Just In Time For The
Plunge Looks like someone may have had a little advance notice on October’s
foreclosure semi-moratorium festivities. According to RealtyTrac, September
foreclosures marked a 5 month high of 347,420, jumping 3% from the previous
month and 1% from September 2009, even as the 3rd quarters marked the highest
foreclosure activity on record.
Report From Europe: Rise in Jobless Claims Takes Shine Off Stocks The Mole The QE trade is alive
and well and risk assets are firing on all cylinders. Gains in stocks and commodities, in particular, are now
accelerating. It seemed to me that QE2 talk would prove bullish for risk assets. And the lack of a
cooperative stance within the G20 on currency matters – as the IMF meetings over the weekend showed
– is now adding fuel to the fire. To recap U.S. stocks rose Weds, sending benchmark indexes to five-
month highs (but failed to close above the key 1175 level), as better-than-estimated results at CSX Corp.
(CSX) and China’s record currency reserves boosted optimism in the economic recovery. CSX, the
second-largest publicly traded U.S. railroad, rallied 4.2 percent after also saying it’s seeing improvements
across almost all markets, Alcoa added 1.3 percent and Freeport-McMoRan Copper & Gold (FCX)
advanced 3.8 percent leading a measure of raw materials producers to the biggest gain among 10
industries in the S&P’s 500 Index, amid speculation that Chinese demand will improve after the world’s
fastest-growing major economy announced $2.65 trillion in currency reserves. But JP Morgan (JPM),
which had opened up 2 percent after beating the Street by 13 percent, later turned offered as on second
glance the figures were flattered by a higher reserve release and lower provisions and finished the day
down 1.5 percent. I think those Chilean miners have become too mainstream…I preferred them when
they were underground!
Today’s Market Moving Stories
• The seemingly friendless USD slid across the board overnight following the decision of the
Monetary Authority of Singapore to widen the band of the Singapore Dollar and thus allow more
strength against the USD. So they have effectively tightened policy by slightly raising the speed of
SGD appreciation against a trade weighted basket and widening the managed band. This in
response to an economy which has eaten into all its spare capacity and is at risk of inflation.
Clearly Singapore is at the opposite end of the economic spectrum to the US. And the move
contrasted with the recent attempts by Emerging Markets central banks to prevent further
appreciation of their currencies. Importantly, there was also little to suggest that other central
banks in the region are following suit in the immediate aftermath of the MAS decision. The fact
that freely floating currencies like EUR and SEK were among the top performers against USD
overnight also indicates that there was little to suggests that investors are anticipating more
burden sharing and less unilateral FX interventions to come going forward.
• Richmond Federal Reserve Bank President Jeffrey Lacker said a Fed policy devoted primarily to
reducing unemployment risks damaging the central bank’s credibility in containing inflation. “With
inflation reasonably close to any plausible definition of price stability, and all expectations
measures pointing in the right direction, making unemployment a policy imperative poses clear
risks to the credibility of our long run inflation goals,” Lacker said yesterday in a speech in Chapel
Hill, North Carolina. The Fed is considering the purchase of more Treasury securities and efforts
to boost inflation expectations to stimulate the economy and reduce unemployment persisting
near 10 percent, according to minutes of the Sept. 21 meeting of policy makers released this
week. The central bank was prepared to ease monetary policy “before long,” the minutes said.
“Inflation is now on target, as far as I’m concerned,” Lacker told business leaders in the region. “I
do not see a material risk of deflation — that is, an outright decline in the price level.”
• More than 100,000 U.S. homes were seized by lenders in September, a record number that
probably will decline in coming months as major banks halt repossessions and review their
foreclosure practices. Lenders took over 102,134 properties last month, RealtyTrac Inc. said in a
report today. That was the highest monthly tally since the company began tracking the data in
2005, surpassing the August record of 95,364. Foreclosure filings, including default and auction
notices, rose 3 percent from the prior month to 347,420. One out of every 371 households
received a notice. Sales of properties in the foreclosure process accounted for almost a third of all
U.S. transactions in the month, a sign that a prolonged delay in repossessions may hurt the
housing market, RealtyTrac said.
• The Bank of England must combat inflation if it is to remain credible, senior policy-maker and
resident hawk Andrew Sentance has warned. Mr Sentance, an external member of the Bank’s
Monetary Policy Committee (MPC), has repeatedly voted for the base rate to be raised, but has
been overruled by his other committee members who want to keep it at the current record low of
0.5pc. Maintaining such a low rate could damage confidence in the Bank’s ability to steer the
economy and lead to “self-fulfilling” expectations of above target inflation, he argued in a speech
in London on Wednesday. In recent years monetary policy and the MPC’s actions have created
confidence that stable inflation will be maintained, he said. He also said somewhat curiously that
the record drop shown in the Halifax house-price gauge last month may show “volatility” instead
of heralding a renewed property-market slump.
• Bank of England Deputy Governor Paul Tucker said he is “more balanced’ than he expected to
be about inflation and removing expansionary policies, the Daily Mail reported, citing an interview.
Until recently Tucker regarded inflation as being ‘‘uncomfortably high,’’ the newspaper said. The
key is the labour market, which is ‘‘a slight amber light’’ while the decline in house prices isn’t
‘‘terribly surprising,’’ Tucker said, the Mail reported.
• In other comments, the BOE MPC member Adam Posen said the global economy needs more
monetary stimulus and restraint in deficit reduction to avert a repeat of mistakes made by
European policy makers in the 1930s. Monetary policy that doesn’t do enough to stimulate the
economy risks provoking low growth and deflation if governments at the same time execute strict
spending cuts, Posen said in a commentary published in Handelsblatt newspaper.
• According to the FT two Norwegian day traders have been handed suspended prison sentences
for market manipulation after outwitting the automated trading system of a big US broker. The two
men worked out how the computerised system would react to certain trading patterns – allowing
them to influence the price of low-volume stocks. The case, involving Timber Hill, a unit of US-
based Interactive Brokers, comes amid -growing scrutiny of automated trading systems after the
so-called “flash crash” in May, when a single algorithm triggered a plunge in US stocks. Svend
Egil Larsen and Peder Veiby had won admiration from many Norwegians ahead of the court case
for their apparent victory for man over machine. Prosecutors said Mr Larsen and Mr Veiby “gave
false and misleading signals about supply, demand and prices” by manipulating several
Norwegian stocks through Timber Hill’s online trading platform. Anders Brosveet, lawyer for Mr
Veiby, acknowledged that his client had learnt how Timber Hill’s trading algorithm would behave
in response to certain trades but denied this amounted to market manipulation. “They had an idea
of how the computer would change the prices but that does not make them responsible for what
the computer did,” he told the Financial Times. Both men have vowed to appeal against their
convictions. Messages posted on Norwegian internet forums on Wednesday indicated
widespread sympathy for the defendants. “It is the trading robots that should be brought to justice
when it is them that cause so much wild volatility in the markets,” said one post. Mr Veiby, who
made the most trades, was sentenced to 120 days in prison, suspended for two years, and fined
NKr165,000 ($28,500). Mr Larsen received a 90-day suspended sentence and a fine of
NKr105,000. The fines were about equal to the profits made by each man from the illegal trades.
Christian Stenberg, the Norwegian police attorney responsible for the case, said any admiration
for the men was misplaced. “This is a new kind of manipulation but it is still at the expense of
other investors in the market,” he said. Interactive Brokers declined to comment. Irregular trading
patterns were first spotted by the Oslo stock exchange and referred to Norway’s financial
regulator.
• The earnings season so far has been broadly positive. S&P 500 companies’ earnings are
expected to rise 23.6 percent from a year ago and according to Thompson Reuters data, 81
percent of the S&P 500 companies that have already reported have surpassed expectations.
According to Thomson Reuters, the long-term average for beats for an entire reporting period is
61 percent.
• Datawise today we’ve just had the US weekly jobless claims numbers & they have disappointed
rising to 462k against expectations from them to stand pat at 445k and the PPI numbers have
come out with a higher print than expected & taken some of the early doors shine off the S&P
futures.
• There was a rumour in the market this morning that the US and China have agreed a deal on
Chinese Renmimbi (yuan) valuation higher, in turn US will hold back QE2? This may not be as far
fetched as it seems as though the earnings season has got off to a good start with both JP
Morgan and Intel beating market expectations. But the broader QE theme is what continues to
drive risk higher and the USD lower. Gold has made fresh highs; and the AUD is approaching
parity with the Greenback; EUR traded through 1.41, while CAD finally broke the 1.00 level in
Europe. However the QE theme is providing Asian policymakers with an increasing headache.
Intervention to stem currency appreciation has added over USD 250bn to Asian FX reserves over
the past quarter, with about 120bn of that in September alone. Diversification flows continue to
push the EUR higher. But as interest rates rise in Asia, so too do the costs of sterilisation.
Chinese PBOC 3m bills yield over 1.5 percent; for a similar yield from US Treasuries, the central
bank must go out beyond six years. As such the market pressure on Asian Central Banks to allow
currency appreciation continues to mount. In response, Singapore’s MAS has signalled a steeper
pace of currency appreciation over the next six months. In a different approach, the Bank of
Korea has refrained from raising rates, willing to risk higher inflation to avoid further yield-chasing
inflows. And China continues to allow slow appreciation of the Renminbi, but at a cost of
increased inflows of hot money as evidenced by the USD 100bn jump in reserves in September.
In this environment, I watch for triggers that might shift market expectations for QE. While inflation
is a key input for the Fed, tomorrow’s US CPI is unlikely to change the outlook. More important
will be Bernanke’s Boston Fed speech, also tomorrow – it will be watched for potential discussion
of more unorthodox measures. But at this stage I believe the major risk is that markets are
overpricing QE. Today’s trade balance numbers from the US may augment the current anti-China
sentiment. The Chairman of the Senate finance committee said that the US Senate is poised to
follow the House in passing legislation on China. The compromise for China and the US would be
less aggressive QE from the US in return for RMB appreciation. The currency implication would
be a stronger Asia, and a fall in EUR/ USD.
• Meanwhile the USD /JPY cross has marked a new 15-year low despite further official jawboning.
While there remains some nervousness as we approach key levels at 80.65 and the all-time lows
of 79.75, markets see Japanese condemnation of Korean intervention as raising the bar to further
intervention, particularly ahead of the G20 finance ministers’ meeting at the end of next week.
Intervention looks unlikely while the move is a broad USD one, and while yen crosses remain
relatively elevated. Accordingly a drift lower towards the 80 level looks likely.
Company / Equity News
• Today in Europe the fallout from the surprise rights issue by Standard Chartered (SCBFF.PK)
continues to cause ripples. The FTSE 350 Banks Index has lost 4.5 percent since the beginning
of August amid concern that new requirements under the Basel III accord will require banks to
raise more capital, diluting shareholder value. And Barclays (BCS) lost 3.1 percent today partially
down to a broker downgrade at Execution Noble who downgraded the shares to “neutral” from
“buy.” French bank Societe Generale (SCGLY.PK) was also feeling the chill down 2.3 percent
and Royal Bank of Scotland (RBS) fell 3.2 percent again reflecting the nervousness amongst
investors to financials.
• Other notable movers included African Barrick which has shed 8.3 percent Thursday on news
that the company suspended about 40 percent of employees in the site’s mining department due
to allegations of widespread theft & infiltration by criminal gangs . The miner will produce about
30,000 ounces less this year as a result of the theft. The company had already cut production by
10,000 ounces in the third quarter.
• Vodafone (VOD) has risen 1.3 percent to 166.1 pence. Nomura lifted its recommendation on the
world’s second-largest mobile-phone company by market capitalization to “buy” from “neutral.”
Separately, hedge-fund manager David Einhorn said that analysts may have undervalued
Vodafone shares by disregarding the U.K. company’s 45 percent stake in Verizon Wireless
because it doesn’t pay a dividend.
• WH Smith Plc advanced 5.4 percent this morning after the U.K.’s biggest seller of magazines said
it will return as much as £50 million of cash to investors through a “rolling share buyback.” WH
Smith said full-year profit before tax and exceptional items rose 9 percent to £89 million in the 12
months through August.
• In Germany, preferred shares of Hugo Boss have advanced 4.4 percent after Germany’s largest
clothing maker raised its sales and profit forecasts. Earnings before interest, taxes, depreciation,
amortization and one-time items will rise about 20 percent for the year, according to the
Metzingen-based company, which previously forecast growth of 10 percent to 12 percent.
• French luxury goods company LVMH Moet Hennessy Louis Vuitton (LVMUY.PK) Thursday
expressed confidence for this year as it reported a 23 percent jump in third-quarter sales with all
divisions growing at a double-digit rate. Sales for the third quarter were €5.11 billion, compared
with €4.14 billion a year earlier, beating analysts’ expectations of €4.83 billion, according to a
Dow Jones Newswires poll. The group’s performance so far this year has “confirmed its
confidence for 2010,” the company said in a statement, signalling that the owner of fashion house
Fendi and jewelry brand Chaumet is entering the all important end-of-the year period with new-
found assurance. Luxury goods executives have been cautious in calling a return to their sector’s
growth after the economic crisis abruptly ended years of fast growth. LVMH shares have risen 23
percent over the past six months, largely outpacing the Paris CAC-40 index, which declined 6
percent over the same period. Investor confidence in the sector has gathered speed in recent
months.
• Germany’s Demag Cranes may be open to a takeover bid if it involves a comprehensive offer that
benefits all parties, the Financial Times Deutschland reported Thursday, citing people close to the
company. Last week, the crane builder rejected overtures from rivals Konecranes Oyj of Finland
and Terex Corp. of the U.S., although no concrete bids were made, the report said. Demag has
said its strategy centres on independence, the report said.
• There is current news focus on the foreclosure process by the big US banks. Loan document
procedures in particular are under scrutiny. Wells Fargo (WFC), Bank of America (BAC), JP
Morgan (JPM) are probably most exposed in this story. JP Morgan has set aside $1.3 billion in
litigation reserves, a chunk of which is for potential cases in mortgages. In the meantime it has
halted foreclosures. BoA also stopped foreclosing from last week while it reviews the accuracy of
its docs. Wells and BoA took some beating in CDS yesterday although the share prices were not
really punished. This is one of those shadows on the banks that they could do without, certainly in
the current bank-bashing society we are in and will probably cost them to some extent (e.g.
litigation reserves).
• Visa (V) and MasterCard (MA), the world’s biggest payment networks, climbed in New York
trading yesterday after JPMorgan Chase & Co. reported a 6.6 percent increase in credit-card
spending. Visa advanced 3.6 percent and MasterCard, rose 3.9 percent.
• Bloomberg reports that AOL Inc. (AOL) and several private-equity investors are exploring a mega
deal for Yahoo! Inc. (YHOO), the Wall Street Journal reported, citing unidentified people familiar
with the matter. Yahoo isn’t involved in the deal yet, the Journal said. Silver Lake Partners and
Blackstone Group LP are among the firms interested in a potential deal, the newspaper said.
Unidentified spokespeople for AOL, Yahoo and Blackstone declined to comment, the Journal
said, adding that Silver Lake didn’t immediately respond to requests for comment. Elsewhere
Yahoo is reported to have hired Goldman Sachs to advise it on how to fight any potential
takeover.
• Clearwire Corp. (CLWR), the high-speed wireless carrier, is seeking to raise $2.5 billion to $5
billion in a wireless-spectrum auction that has attracted telephone and cable companies, said
people with direct knowledge of the sale. AT&T Inc. (T), Verizon Wireless (VZ), Deutsche
Telekom AG (DTEGY.PK), Time Warner Cable Inc. (TWC) and Clearwire’s majority owner, Sprint
Nextel Corp. (S), are among potential buyers of the spectrum, said the people, who declined to
be identified because the process isn’t public. The bidding is in its second round and being
managed by Deutsche Bank AG, they said. Clearwire shares surged as much as 11 percent.
• Vodafone Group Plc’s shares may be undervalued as analysts are disregarding the U.K.
company’s 45 percent ownership in Verizon Wireless because it doesn’t pay a dividend,
according to hedge fund manager David Einhorn. “We have a lot excitement relating to
Vodafone,” Einhorn, who profited from bets against Lehman Brothers Holdings Inc. in 2008, said
today at the Value Investing Congress in New York. “Eventually they will begin to collect a
dividend, perhaps as early as next year, and then we will get a revaluation of that stock from
there.” Vodafone, the world’s biggest wireless operator, hasn’t received a dividend since 2005
from its stake in Verizon Wireless, whose head Lowell McAdam was promoted to president and
chief operating officer of New York-based Verizon Communications Inc. in September.
• Iraq is in the final stages of agreeing on a draft of its $12 billion gas contract with Royal Dutch
Shell PLC (RDS.A), the country’s oil minister said Wednesday, allaying fears the project was
mired in a legal dispute. Speaking upon his arrival in Vienna for a meeting of the Organization of
Petroleum Exporting Countries, or OPEC, Hussein al-Shahristani also said a planned bidding
round for three major gas fields would go ahead as planned on Oct. 20 after being delayed twice
before. Asked about the reported delay of the Shell deal, Shahristani said: “We are in the final
stages of agreeing on the draft before we take it on the cabinet again,” adding “There has been
no dispute” over the deal.
• Rio Tinto Group (RTP), the world’s third- largest mining company, said third-quarter iron ore
production rose to a record. Output rose to 47.6 million metric tons in three months ended Sept.
30, from 47.0 million tons a year earlier, the London-based company said today in a statement.
Rio, the world’s second-biggest exporter of iron ore, approved $1.3 billion of spending on
expansions at its Australian iron ore assets in the quarter. The company also set production
records for alumina and coking coal.
• Where the first round of 3Q10 corporate earnings reports overall build on the strong 2Q10
earnings trend, the 7 percent YoY 3Q10 revenue decline reported by Roche Holding this morning
confirms the challenges facing the pharmaceutical sector. The virtual cessation in demand for
Tamiflu, that was boosted last year due to the swine flu pandemic, was the main reason for the
negative revenue growth. In the meantime patent expirations and the consequent M&A activity
remain the order of the day in pharmaceuticals. Pfizer’s AA- rating was put on a negative outlook
at Fitch at the beginning of October as patent expirations are expected to erode revenues,
according to that rating agency. Earlier this week Pfizer (PFE) also announced its acquisition of
King Pharmaceuticals for $3.6bn in cash, which is just a fraction of the $62bn linked to the
company’s acquisition of Wyeth in 2009. According to S&P, the acquisition will be negligible in
terms of the company’s leverage, and therefore Pfizer’s AA rating remains unaffected by the
acquisition. Also Moody’s and Fitch do not expect that Pfizer’s rating will be affected by the
acquisition. Pfizer will report its 3Q10 earnings on 2 November. Disclosure: None
National / World
Moneybomb Search Terms Skyrocket to Top of Google Trends Infowars.com |
Once again, Infowars search terms have blitzed Google Trends.
U.S. Troops To Deal With Rioting Americans Paul Joseph Watson | U.S. troops are
being readied to oversee a post-collapse America in which riots are met with
a militarized police state.
Watch the Moneybomb Video Feed Free! Infowars.com | Alex takes to the air in a
marathon effort to fund in Infowars operation. Watch the video stream for
free over the internet.
MSNBC Teleprompter Reader Attempts to Ambush Ron Paul Kurt Nimmo | Ron
Paul ventured into enemy territory when he agreed to appear on the
Lawrence O’Donnell show on MSNBC, the same network that ambushed his
son.
Government Trains Troops To Run American Cities Paul Joseph Watson | Program
re-ignites fears that active duty military are being primed to deal with civil
unrest in aftermath of economic turmoil.
wobama, palin, limbaugh distant cousins … I knew there were some dark secrets
there … hillbilly heroin, etc..
Riot police storm the Acropolis Reuters | Police in Athens moved in to the
Acropolis to break up a blockade by workers protesting over back pay who
had locked themselves in to the site and were refusing to let in tourists
Drudgereport: NEW NORMAL: Long Recovery Looks Like a Recession

(Depression) ...
Applications for jobless benefits rise to 462,000...
'Higher-than-expected'...
September home foreclosures top 100,000 for first time...
Inflation, Trade Deficit Surge Higher...
Dollar tanks as Bernanke speech looms...
Afghans allege abuse at secret US jail...
13 troops killed in Afghanistan -- in two days...

which is now eating into real (not fake) GDP along with other unserviceable
promises exacerbating the magnitude of the nations defacto insolvency. ] ‘Your
view of something often depends on the position from which you view it. I don’t
mean this in the Theory-Of-Relativity sense that a moving observer perceives
time differently from the stationary observer, although it is true there too of
course. I mean it in the more prosaic sense that a tightrope seems higher when
you are standing on it than when you are looking at it from below. As observers
of the economy, our initial position – our ‘null hypothesis,’ as I sometimes refer to
it – will very much drive our response to economic data; our market position may,
if we are not very careful about it, affect our view of the likely future direction of
the market. The Federal Reserve yesterday released the minutes of their most-
recent meeting, and it looks to me as if their perspective about the necessity of
quantitative easing is more biased than we had previously believed. While the
minutes reflected (as they often have, especially over the last two years) a
diversity of opinion, the following notation grabbed my attention:
Several members noted that unless the pace of economic recovery

strengthened or underlying inflation moved back toward a level
consistent with the Committee’s mandate, they would consider it
appropriate to take action soon.
Notice the subtle difference between this and what actually was agreed to be
released as the FOMC’s statement for that meeting:
Measures of underlying inflation are currently at levels somewhat

below those the Committee judges most consistent, over the longer
run, with its mandate to promote maximum employment and price
stability.
“Longer run” in the second phrase seems to conflict with “soon” in the first
phrase, making it appear that the official statement was a compromise with at
least several members pushing for action “soon.” But that cadre also sets the bar
quite low. They aren’t saying the Fed should ease further if things get worse, but
that they should ease if things don’t get better quickly enough.That’s a very
activist slant. While this group appears to be in the minority, we know from the
various speeches that it isn’t a minority of one. QE certainly appears more likely
every day that we don’t get positive blow-out economic news.
What is the justification for easing on the basis of a too-slow improvement? I
imagine much of this concerns a fairly obscure debate about whether economic
growth is “unit root” or not. Stay with me here. This sounds esoteric, but it
matters.
It isn’t important to understand the mathematics behind determining whether a
time series is generated by a process with a unit root; if you’re interested, you
can read the Wikipedia article on ‘unit root.’ * For our purposes, what is important
to understand is this: if economic output is not unit root but is rather trend-
stationary, then over time the economy will tend to return to the trend level of
output. If economic output is unit root, then a shock to the economy such as we
have experienced will not naturally be followed by a return to the prior level of
output. Actually, the Wikipedia chart is pretty helpful at understanding this – see
below (chart). This picture taken from the Wikipedia article on "unit root" (see
above for link)
So, the red line is what we have experienced the last few years (stylistically, not
literally). If growth is “unit root” then the trend basically picks up from where
output is in the immediate aftermath of the shock; if growth is trend-stationary
then the recovery should see a period of faster-than-trend growth to get output
back to the prior trend level. Note that in both cases, we are assuming no specific
contribution from monetary policy. If you believe that growth is trend-stationary,
then monetary policy merely serves to get growth back to trend more quickly,
thereby minimizing the welfare loss from the output gap (schematically, the area
between the dotted line and the “actual” red/blue line). Thereafter, monetary
policy takes the pedal off the metal and lets growth converge with trend. If, on the
other hand, you believe that growth is unit root, then monetary policy is either
trying to arrest the decline in the red line to put the economy back on the green
line, or it is (dangerously) trying to accelerate growth back to a “trend” that is not
really a trend. I expect this is the substance of Hoenig’s objection – if we’re back
near the green line, and output is unit root, then goosing the economy more “will
lead to future imbalances that undermine stable long-run growth” (the phrase
from the FOMC statement where Hoenig’s dissent was noted).
Clearly, most of the Committee doesn’t believe that output is unit root, because if
it did then it would tend to be more suspicious of the ability of Fed policy to
reduce that welfare loss. It is true that it is difficult to reject the unit root
hypothesis for many economic time series – the ratio of noise to signal in
economic data means it tends to be pretty hard to reject many hypotheses that
are in the ballpark of being reasonable. But it matters. Problems like this, where
the downside to being incorrect are possibly quite large compared to the upside
to being right, argue against dramatic Fed action. However, the sense of heroism
inculcated in us at a young age by Superman’s exploits argue in favor of heroic
measures. Most of us, though, aren’t actually bulletproof. I will make one final
observation about this that throws another wrench in the works. What if we don’t
know where the dotted line in the picture above actually lies? Long-term
economic growth has changed over time as the economy has matured, as
population growth changed, and for other reasons. Suppose the unobservable
dotted line actually intersects the right-end of the red line? In that case, the
current debate takes a totally different patina. If trend growth has actually slowed
down in the last decade, then arguably the economic and financial crisis may just
have been returning us down to the real trend. In that case, further aggressive
Fed action would be essentially trying to restore those dangerous imbalances.
This, too, could be part of Hoenig’s argument. And this possibility, too, argues for
conservative policy actions.
In economics, unfortunately, we don’t have a map we can look at where a bright
red dot indicates You Are Here. But wherever we are, it seems that an
increasingly influential minority at the Fed wants to be somewhere else. They are
likely to get their wish. The markets responded to all of this yesterday in sleepy
fashion, with one exception. The VIX plunged, dropping not only below 20 for the
first time since April but also dropping below 19. The degree of confidence being
expressed by the stock market here, heading into earnings season followed by a
difficult holiday sales season, is chilling. It is hard to let go of suddenly-
performing equities, but I am making sales here of some of my lower-yielding and
less-conservative equity holdings. Other than some import price data today, there
is little on the calendar. Chairman Bernanke is giving a speech on business
innovation, but be alert for Q&A.
*Wikipedia: ‘Economists debate whether various economic statistics, especially
output, have a unit root or are trend stationary. The issue is particularly
popular in the literature on business cycles. Research on the subject began
with Nelson and Plosser (1982) [1] whose paper on GNP and other output
aggregates failed to reject the unit root hypothesis for these series. Since
then, a debate—entwined with technical disputes on statistical methods—
has ensued. Some economists[2] argue that GDP has a unit root or structural
break, implying that economic downturns result in permanently lower GDP
levels in the long run. Other economists argue that GDP is trend-stationary:
That is, when GDP dips below trend during a downturn it later returns to the
level implied by the trend so that there is no permanent decrease in output.
While the literature on the unit root hypothesis may consist of arcane debate
on statistical methods, the implications of the hypothesis can have concrete
implications for economic forecasts and policies.’
The Coming Bomb From Helicopter Ben Epeneter ‘At the Federal Open Market
Committee meeting on November 2nd and 3rd, the Federal Reserve may be ready to
buy anywhere from $500 billion to $1 trillion of US Treasuries and mortgages from
banks, financial institutions, and the open market, an operation generally known as
printing money. Federal Reserve Chairman Ben Bernancke, New York Fed President
William Dudley, Chicago President Charles Evans, the Boston President, and others are
targeting a 2% inflation rate (the CPI is now about 1%). Their hope is that
unemployment will be substantially reduced, gross domestic product will increase, and
hope and happiness will return. We think the size of this money-printing operation
qualifies as a "bomb" to the markets. Here's five reasons why it's a bomb and won't
work as planned.
An increase in the inflation rate quite possibly already in the pipeline. Since
Chairman (Helicopter Ben) Bernancke announced his intentions at the August Jackson
Hole Wyoming conference, prices for gold, oil, copper, steel, platinum and other
precious commodities have risen substantially. These price increases will eventually
find their way into the final cost of goods and services you and I buy. An inflation rate of
2% could happen without any further action by the Federal Reserve.
Limited inflation targeting will not work as shown by history. Former Federal
Reserve Chairman William McChesney Martin retired in 1970, but during his tenure, he
testified before the Senate Finance Committee, "There is no validity whatever in the
idea that any inflation, once accepted, can be confined to moderate proportions." The
experience of the 70's seems to support his statement. During the 50's and 60's it was
thought that some inflation was good for the economy. Looks those who forgot history
are putting forth again the idea that limited inflation is good.
Businesses won't borrow until they have confidence that other costs won't go up.
The real problem that Federal Reserve money printing doesn't address is the reluctance
of business owners to hire more workers and expand business until they know what the
costs are going to be (such as health insurance) and what the income tax rate will be
(such as the Bush tax cut extension). In addition, owners are struggling with new
regulations imposed upon them
Banks won't lend. Banks are building their capital bases and their lending standards
have increased. Lending activity is down because of those reasons and providing more
cash will not affect lending activity much if any.
The cost/benefit analysis doesn't support it. The Federal Reserve has modeled what
would happen if they printed $500 billion of new money. The interest rate on the
benchmark 10-yr Treasury note would decrease by .15% or 15 basis points.
Unemployment would decrease by 0.2%. GDP would increase by 0.2%. We would ask
whether the cost of inflation to the United States as a whole is worth the benefits as
modeled by the Fed…’
California governor debate turns into verbal brawl (Reuters) [ California, like the
rest of the nation, is such a disaster that I’m disinclined to even comment
upon the political scyllas and charybdises nationwide, except in the most
glaring instances. Meg Whitman’s membership on the Goldman Sachs
board, her $120 million payment to herself then laying off 10% of the
company’s workforce, is such an instance. Come on! This is a no-brainer for
California … Congratulations Governor Brown! ]
Gold hits record as Fed signal sinks dollar Vancouver Sun | Gold surged to a
record high at $1,367.65 an ounce on Wednesday and silver to a 30-year
peak.
85% of Americans Angry About Economy, Fuels Republican Advantage ABC

News | All told, 85 percent of Americans are either angry about the economy
or at least dissatisfied with it, according to the survey, produced for ABC
and Yahoo! News by Langer Research Associates.
Fed declares it MUST create inflation! Uncommon Wisdom | Exactly one month ago
today, I wrote that Fed Chief Ben Bernanke would soon “pull out nuclear-
sized bombs to try and destroy the debt crisis that is affecting the world.”
Gold sets a new record; silver hits 30yr high Gold surged nearly 2% to a record
high near $1,375 an ounce yesterday, boosted by worries over dollar
depreciation after the Federal Reserve signalled it would start buying
government debt again to stimulate the economy.
Gold Surges After Japan Says It Is Considering New QE And Geithner Guarantees
Currency Wars A quick look at gold price action demonstrates that someone
somewhere is actively debasing currencies. An even quicker scan of
headlines confirms this to be the case: per Reuters “Bank of Japan
Governor Masaaki Shirakawa said on Wednesday the central bank will
consider expanding a new scheme for buying assets ranging from
government bonds to exchange-traded funds when deemed necessary.”
Gold futures rise above $1,360 as dollar falls Gold futures resumed their run
higher, hitting an intraday high of $1,362 an ounce on Wednesday, as
weakness in the U.S. dollar spurred demand for the precious metal.
White House rejects foreclosure moratorium The Obama administration rejected

calls for a nationwide moratorium on housing foreclosures amid fears that
such a move could cripple an already slow recovery of the U.S. housing
market.
National / World
New 9/11 Footage Reveals WTC 7 Explosions Paul Joseph Watson | Video clip
NIST fought tooth and nail to keep secret contains clear audible booms as
eyewitness describes “continuing explosions” from direction of Building 7.
We’re Under Attack: Support Alternative Media in the Infowar Alex Jones & Aaron
Dykes | Make no mistake, the Infowar is under attack. The establishment is
alerted to the work that Infowarriors everywhere have done. Now, to
continue fighting back in full force, we need your help.
Head of Investigator in Falcon Lake Case Delivered to Mexican Military Kurt

Nimmo | The murder of Rolando Armando Flores Villegas points to
involvement of drug cartel in the slaying of David Michael Hartley.
Ron Paul: Dollar Collapse Will Spur 2012 Presidential Run Paul Joseph Watson |
Congressman indicates that worsening financial picture will re-ignite the
Revolution.
New 9/11 Footage Reveals WTC 7 Explosions Newly obtained 9/11 eyewitness
footage that NIST fought tooth and nail to keep secret contains what appears
to be the sound of explosions coming from the vicinity of WTC 7 after the
collapse of the twin towers, offering yet more startling evidence that the
building, which was not hit by a plane yet collapsed demolition style, was
deliberately imploded.
Jesse Ventura: US should abolish inherently corrupt political parties A dozen

years after shocking the nation with an upset win as an Independent
candidate in the 1998 Minnesota gubernatorial election, former wrestler
Jesse Ventura doesn’t support third parties anymore.
Gallup: 46 Percent Say Federal Gov’t ‘Poses Immediate Threat’ to Rights and
Freedoms of Ordinary Citizens; Only 51 Percent Say It Does Not The
percentage of Americans who think the federal government poses “an
immediate threat” to the rights and freedoms of ordinary citizens has
increased significantly over the last seven years, rising from 30 percent to
46 percent, according to a Gallup poll conducted Sept. 13-16 and released
today.
We’re Under Attack: Support Alternative Media in the Infowar This video is a
chronicle of everything we’ve done here in the Infowar. We ask that you help
get it out to everyone you know and tell them to join us live this Thursday,
October 14th for an historic 24-hour broadcast to generate support and get
out the word as far as we can.
Goldman Sachs Predicts Gold To Hit $1650 Within 12 Months Goldman Sachs
expects the dollar to plummet following another round of quantitative easing
and has raised its forecast for the gold price to $1,650 per ounce within the
next 12 months.
3.5 Million On The Streets And Rising: As French Strikes Escalate, Just How
Serious Is The Situation? Even as everyone in America seems to have
anywhere between 2 and 4 opinions on Fraudclosure now that the topic is
firmly planted in the MSM newsflow, things in Europe are not looking any
better, even though most people there shun McMansions for their
grandmothers’ houses.
Chicago Reporters Work as Rahm’s Press Thugs; Threaten Radio Host Asking
Tough Questions We’ve often said that the media “protects” President
Obama but this video from WIND radio host and Big Blogs contributor
William Kelly shows this allegation literally.
‘Intl. lobby supports Israel’s crimes’ Former US Congresswoman Cynthia

McKinney says a strongly-financed lobby throughout the world has helped
Israel violate international law.
Drudgereport: NEW NORMAL: Long Recovery Looks Like a Recession
(Depression) ...
French protestors vow to continue strike (Washington Post) [ Hey … wake up …

it’s not just in France … and, you’ll see unrest here also as coddling the
frauds on wall street will make blood boil! ]Air and rail service throughout
the country was disrupted by the protests -- the fourth in a month.
FDIC may seek $1 billion from failed-bank executives (Washington Post) [ Isn’t
this exactly what the DOJ should be doing vis-à-vis the frauds on wall street;
and additionally, the wall street frauds et als should as well be criminally
prosecuted, jailed, fined, and disgorgement imposed.] The agency has
authorized lawsuits against more than 50 officers and directors of failed
banks across the country.
Obama and oil: How politics spilled into policy (Washington Post) [ There are
many reasons to fault wobama for his flawed, failed presidency; but this is
not one of them; he gets a pass here. It was all BP. ]Fundamental questions
weren't pursued because top administration officials generally accepted the
conventional view of the industry's safety record.
Families remember USS Cole 10 years later (Washington Post) [ If only Americans
remembered the USS LIBERTY, they’d understand the israeli albatross
strangling and bleeding the life out of america as they have since that fateful
day.] In the Middle East, it's still 1947 (Washington Post) [ Indeed it should
be! Among the few times the cia was correct, and they’ve been trying to put
square pegs in round holes ever since, to america’s substantial detriment. I
wonder what what those american sailors of the US Liberty killed by the
israelis would say? USS Liberty Survivor Threatened by Unknown Israeli
This is what happened to Phillip F. Tourney, decorated war hero and
survivor of Israel’s premeditated attack on the USS Liberty 43 years ago. On
the evening of Aug. 6, Tourney was verbally threatened by a foreign national
claiming to work for the government of israel. As for the purported disdain
shown for war mongerer netanayahu, if only wobama’s actions matched his
words, the same would represent a major plus for him and the nation of
america, so sorely in need of pluses whether the same be budgetary or
economic or geopolitical. In fact, for America to abrogate 1948 would
guarantee America’s survival, prosperity, and global hegemony in the most
positive sense. ]
Attorneys general to initiate foreclosure probe (Washington Post) [Wow! Sounds

like a plan! … The only thing certain in defacto bankrupt america today is
uncertainty! Government Prepares To Seize Private Pensions Paul Joseph
Watson | ‘Massive wealth confiscation program would replace 401(k) system
with Social Security-run ponzi scheme. … US Drops From First To Seventh
In Average Wealth Per Adult, Behind Singapore, Sweden, And… France As if
we needed more warnings that the US is rapidly losing its position as the
world’s superpower and wealth aggregator, is the following chart from
Credit Suisse, which ranks the top 10 countries in the world in terms of
average wealth per adult.] Attorneys general from dozens of states are set
to announce Wednesday a joint investigation into the nation's biggest
lenders, but will stop short of calling for a moratorium on foreclosures in
their jurisdictions, officials said.
Fed leaning toward more stimulus, meeting minutes show (Washington Post) [
Most U.S. Stocks Gain on Bets Fed Will Act to Stimulate Economy [ The
problem here is that stimulating stock prices and fraudulent wall street is
quite the opposite of stimulating the economy. ] Survey: Half of Wall Street
expects bigger bonus this year (Washington Post) [ This is nothing short of
incredible … What they should be expecting, for the sake of the nation and the
world, is an 8 by 10 jail cell! ] Bloomberg The percentage anticipating a bigger
bonus increased from last year. For Markets, Bad News Seems to Be Good
News which of course was the scenario just before the last crash when
stocks were floating on air and b*** s***.
Last Time VIX Got This Low Stocks Had Problems Wiggin ‘Fear is looking cheap
again. The Volatility Index fell Monday to 18.98, its lowest level since April
29. That date happens to fall a few days after the Dow and the S&P hit their
post-2007 highs, and a few days before the May 6 “flash crash.” If you’re not
familiar with the VIX, it’s a measure of fear in the market, based on what
people are paying for options on the S&P 500 Index. (chart) Today, even as
fear rises ever so slightly, the VIX struggles to break through 20. “We are
getting close to extreme territory,” said Chris Mayer on April 12, when the
VIX sat below 16. “We are near the limits of what that great rubber band of
life will absorb before it snaps back. The VIX usually hovers between 10-20.
So we are not quite there yet, but the tension is building.” He went on to cite
some of the factors: “The financial system is still a rather creaky affair.
Leverage is still high. Banks remain under-capitalized. The credit cycle has
not yet run its full course, as there are still significant credit losses hiding in
the cupboards of banks. “Then there are the governments of the world. The
US has awful credit metrics. It is bleeding money and owes huge debts. The
states are also bleeding money and have large debts, including giant gaps in
unfunded pension liabilities. They are perhaps worse off, because unlike the
US government, the states cannot print their own money. Then there is the
EU. And Japan.” How much of this has changed, six months later to the
day?’ ]Many Federal Reserve policymakers were leaning toward new action
to boost the economy at their last meeting, but decided to gather additional
information and more carefully analyze their strategy before making any
moves, according to minutes of the meeting.
A Look at Small Business Sentiment, Cautious Consumers and the Stealth

Recession Short ‘The latest issue of the NFIB Small Business Economic Trends
is out today (download PDF). The heavily watched Small Business Optimism
Index rose fractionally from 88.8 to 89.0. Here's a comment from the opening of
the report:
The increase is certainly not a significant move, but at least it did not
fall. Still, the Index remains in recession territory. The downturn may
be officially over, but small business owners have for the most part
seen no evidence of it.
The first chart below taken from the report with a line at 100 and some highlights
added to help us visualize that dramatic change in small-business sentiment that
accompanied the Great Financial Crisis. Compare, for example the Optimism
Index of the past three years with the readings in 2000-2003 with the collapse of
the Tech Bubble. (chart) The next chart is an overlay of the Optimism Index since
2005 with a 91-day moving average of the Consumer Metrics Institute's Weighted
Composite Index, which I regularly monitor here. (chart) The chart suggests that
the government's stimulus measures had a temporary impact consumer
discretionary spending but little or no impact on small business sentiment. To
paraphrase the new NFIB report, the recession may officially be over, but the
Small Business Optimism Index is still in recession territory. Disclosure: No
positions’
ofperjury.pdf
Dr. Doom Is Gloomy Once Again
Buying High, Selling Low Still Popular After All These Years
Report: Price tag for 'basic economic security' rising (Washington Post) [ Yeah …
my mistake for not including virginia in the corrupt ‘national sinkhole’ category,
from direct personal experience! The glaring problem is also the multi-ethnic
mob-infested, corrupt, overly extravagant and costly ny-nj-ct metropolitan
area (but particularly new york / wall street and new jersey) sinkhole / drain
for the rest of the nation. [
perjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ] The
study grew out of research in which people were asked what would make
them feel financially safe.
Government Prepares To Seize Private Pensions Paul Joseph Watson | ‘Massive

wealth confiscation program would replace 401(k) system with Social Security-
run ponzi scheme. The government is preparing to seize the private 401(k)
pensions of millions of Americans while enforcing an additional 5 per cent payroll
tax as part of a new bailout program that will empower the Social Security
Administration to redistribute pension funds in a frightening example of big
government gone wild. Public pension plans have been so aggressively looted
already by the government that cities and counties face a $574 billion funding
gap, according to a CNBC report. That black hole is set to be filled by a new
proposal that will “fairly” distribute taxpayer-funded pensions to everyone, by
confiscating the private wealth of millions of Americans. Its proponents express
staggering arrogance in thinking that they can just steal money people have
worked for decades to accrue as if it’s their own. Not only would the government
confiscate 401(k) pensions, it would also impose a mandatory 5 per cent payroll
tax payable by everyone, according to a hearing chaired last week by Sen. Tom
Harkin (D-Iowa), Chairman of the Health, Education, Labor and Pensions (HELP)
Committee. “This would, of course, be a sister government ponzi scheme
working in tandem with Social Security, the primary purpose being to give big
government politicians additional taxpayer funds to raid to pay for their out-of-
control spending,” writes Connie Hair. The hearing was a platform for advocates
of Guaranteed Retirement Accounts (GRAs), a program authored by Teresa
Ghilarducci, professor of economic policy analysis at the New School for Social
Research in New York. Back in November 2008, Ghilarducci testified to Congress
that 401(k)s and IRAs should be confiscated and converted into universal
Guaranteed Retirement Accounts (GRAs) managed by the Social Security
Administration. “You don’t hold hearings on something you don’t intend to do,”
points out the Market Ticker blog. “I hate it when I’m right. I hate it even more
when tens of millions of Americans are going to get reamed to pay for the crimes
of the handful on Wall Street, and their crony enablers in Washington DC.”…’
Obama calls for $50 billion infrastructure initiative (Washington Post) [ Talk about
late to the game and election-time politicking. Down the tubes / sinkholes in
Afghanistan, Pakistan, even still Iraq, etc., went the u.s. treasury. What was
he thinking … certainly not of his campaign promises which would have
made all the difference in the world if he did. ]The president says the
strategy would not only improve the economy in the long run but also create
good jobs now.
Obama intensifies attack on Chamber (Washington Post) [ Wow! I’d call this a glass-
house story if there ever was one! Drudgereport: GOP Leaders Slam Obama
Over Foreign Contributions 'Lie'... FLASHBACK: Obama Accepting
Untraceable Donations... ] The president continues attacks on the U.S.
Chamber of Commerce for its alleged foreign influence within the
Republican caucus, whether through support for outsourcing jobs by major
U.S. corporations or through overseas money making its way into the
coffers of GOP-leaning interest groups.
Prospects for national foreclosure moratorium dim (Washington Post) [ For ya,
agin’ ya … it’s hard to keep up … that spinning head of their’s, not yours. ]
Administration officials worry that a moratorium could have a significant
impact on the economic recovery.
More Bad News: 10 Things You Should Know About The Latest Economic
Numbers The Economic Collapse | We are in such a rapid decline that it is hard for
most Americans to even comprehend it.
We Are Looking at Trillion-Dollar Plus Annual Interest Payments on U.S. Debt

Owens Krugman: We’re Going To Have To Default On Our Debt One Way
Or Another Some dour commentary from Paul Krugman this morning on the
implications of our monster debt. Economists Herald New Great
Depression The world is currently experiencing the modern day equivalent
of the Great Depression, according to a prominent economist who has
added his voice to scores of others now forecasting ongoing economic
doom on a scale not seen since the 1930s.) , and my position and that of
demographer Dent ( Prechter and many others are also in this camp
although I believe he does not factor in sufficiently the debasement of the
u.s. currency / dollar in arriving at his numbers which do however, at 1,000
on the DOW reflect real, as opposed to inflated values of 3-4,000 owing to
the ever more worthless Weimar dollars which provides ‘spin material’ for
the wall street frauds but is really quite ominous going forward, and very
detrimental in real economic terms.) [This is a global depression. This is a
secular bear market in a global depression. The past up move was a
manipulated bull (s***) cycle in a secular bear market. This has been a
typically manipulated bubble as has preceded the prior crashes with great
regularity that the wall street frauds and insiders commission and sell into.
This is a typical wall street churn and earn pass the hot potato scam / fraud
as in prior crashes’. This national decline, economic and otherwise, will not
end until justice is served and the wall street frauds et als are criminally
prosecuted, jailed, fined, and disgorgement imposed.] [ The reason for the
necessity of prosecution is founded in the circumstances surrounding and
the mindset of what one would deem ‘antisocial personalities’ (disorders) ( I
prefer the prior descriptor of such as psychopathic; the euphemistic
‘sociopathic’ was ‘far too understanding’ in my view of the social /
environmental factors allegedly giving rise to such negative / destructive
behaviors. I don’t buy it.) Specifically, accepted studies / findings have
concluded that the essential defect in those with antisocial (psychopathic)
personality disorders is an inability to respond normally to fear-inducing
stimuli, leading in turn to an inability to inhibit responses that should, but,
as with wall street, have not resulted in punishment. Thus, while I think most
on wall street have proven themselves criminally insane (for the money, ie.,
Stewart, ‘Den of Thieves’ / ‘Liar’s Poker’, the most recent financial debacle /
crisis, which continues to this day); at the least, owing to a lack of fear of
prosecution / punishment, they have become defacto sociopathic /
psychopathic. ] Krugman: It's All Downhill From Here Cullen Roche Love
him or hate him Paul Krugman has been awfully right with regards to the
macro picture in the last few years. He’s one of the rare economists who had
the foresight to see the housing bubble and the likelihood of economic
downturn that would result from it. Krugman recently caused a stir when he
said the US economy was headed for the third depression. Here Are 13
Signs That We’re Actually In A Depression Right Now Gregory White | David
Rosenberg has outlined, in his latest letter, the 13 reasons with this so-
called recovery is actually a depression… David Rosenberg has outlined, in
his latest letter, the 13 reasons with this so-called recovery is actually a
depression.Rosenberg sums it up like this:

sustenance.

and 2012). ]
Obama and oil: How politics spilled into policy (Washington Post) [ There are
many reasons to fault wobama for his flawed, failed presidency; but this is
not one of them; he gets a pass here. It was all BP. ]Fundamental questions
weren't pursued because top administration officials generally accepted the
conventional view of the industry's safety record.
Three Horrifying Facts About the US Debt “Situation” Phoenix Capital Research |
The US Fed is now the second largest owner of US Treasuries.
Dollar Tumbles as Fed Prepares to Print More Money Reuters | The Fed may lead
the way into more aggressive quantitative easing, which is seen knocking
the dollar lower.
Marc Faber Says World Heading for `Major Inflection Point’ Global markets are
heading for an “important turning point” as interest rates begin to rise within
about three months and the U.S. dollar gains, according to investor Marc
Faber.
A Detailed Look At Global Wealth Distribution By now it should be common

knowledge to everyone that in American society, the top wealthiest 1
percentile controls all the political power, holds half the wealth, and pays
what is claimed to be the bulk of the taxes (despite mile wide tax loopholes
and Swiss bank accounts).
Max Keiser: They Are Going To Take The U.S Economy Down Max Keiser reports
on how the “failing US Economy is going off-line”.
Government Prepares To Seize Private Pensions Paul Joseph Watson | ‘Massive

wealth confiscation program would replace 401(k) system with Social
Security-run ponzi scheme. … US Drops From First To Seventh In Average
Wealth Per Adult, Behind Singapore, Sweden, And… France As if we needed
more warnings that the US is rapidly losing its position as the world’s
superpower and wealth aggregator, is the following chart from Credit
Suisse, which ranks the top 10 countries in the world in terms of average
wealth per adult.
Ron Paul Says a 2012 Run Depends On Fall of U.S. Dollar Hot on Call | Texas Rep.
Ron Paul (R) told reporters Saturday that the bulk of the economic crisis is
yet to come, and that a White House ’12 bid largely hinges on his anticipated
fall of the U.S. dollar.
Obama will not ban home repossessions ‘fraud’ BBC | The White House has ruled
out a temporary ban on the repossession of homes, despite a growing row
over alleged malpractice.
The Fed’s QE2 — Speeding Our Demise America’s Faltering Empire | The Federal
Reserve would like to return to the Glory Days of the Bubble Era (1995-2007).
National / World
Sarah Palin: The Next Teleprompter Reader in the White House [ Not gonna’
happen … she’s just too embarrassingly dumb … and all that fake macho /
zionist b*** s*** … unless her gal o’donnel casts a spell … which is a whole
new ball game … witches … really … how ‘bout dumb *******s …. she’s really
dumb enough to press the button. ] ? Kurt Nimmo | In 2008, Tea Party Sarah
trekked to New York to kiss Henry Kissinger’s ring.
French Workers Threaten General Strike in Response to Austerity Kurt Nimmo | In

France, workers and students may soon revisit May, 1968, when a general
strike shut down the country.
Update on New Hampshire Thugs Snatching Baby Girl Infowars.com | Story is now
national news.
Obama Has Lost Almost Half Of Former Supporters With just three weeks to go
until the midterm elections, a significant national poll indicates that Barack
Obama has lost almost half of his support base since taking office, and
while voters are turning away from the Democrats, they are also still turning
away from Republicans.
Update on New Hampshire Thugs Snatching Baby Girl: Oath Keepers plans rally
Oath Keepers founder Stewart Rhodes and John Irish confirm that court
used Irish’s association with the group in order to snatch newborn baby.
Sarah Palin: The Next Teleprompter Reader in the White House? [ Not gonna’
happen … she’s just too embarrassingly dumb … unless her gal o’donnel
casts a spell … which is a whole new ball game … witches … really … how
‘bout dumb *******s ... and all that fake macho / zionist b*** s*** ... she’s really
dumb enough to press the button. ] It looks like the establishment is
grooming Tea Party Sarah for a run. She says as much in the Newsmax
interview below.
French Workers Threaten General Strike in Response to Austerity In France,

workers and students may soon revisit May, 1968. French president Nicolas
Sarkozy and the French unions are locking horns over pension reforms.
Government Prepares To Seize Private Pensions The government is preparing to

seize the private 401(k) pensions of millions of Americans while enforcing an
additional 5 per cent payroll tax as part of a new bailout program that will
empower the Social Security Administration to redistribute pension funds in a
frightening example of big government gone wild.
Israeli MP: Shoot child rock throwers An Israeli lawmaker has backed the
shooting of Palestinians that throw rocks at settler cars, saying even children
should also be targeted.
Israeli prime minister offers conditional settlements freeze (Washington Post )
[ Déjà vu all over again? Now why is there a familiar ring to this story … maybe
‘cause of the ‘been there done that ‘ reality. It’s really quite incredible since
israel’s in violation of u.n. resolutions (242, 338, etc.), international law, nuclear
proliferation treaty, a drain on the the u.s. globally / domestically, etc.. The u.s. /
international community should impose a resolution. ]
Hostage accidently killed by rescuers? (Washington Post) [ Winning hearts and

minds … riiiiight! ]
Drudgereport: RASMUSSEN: 63% Angry at Policies of Federal Government; 43%

Very Angry...
America on 'brink of a Second Revolution'... [ This is more real than most people
can imagine! ]
SHE'S A WHAT?
BROWN CAMP CALLS HER A 'W**RE'...
SHOCK AUDIO...
Biden: 'If We Lose, We're Going To Play Hell'..
POLL: BUSH PULLS EVEN WITH OBAMA [ WOW! THE ULTIMATE INSULT …
WELL, AS I’VE BEEN SAYING, THERE’S VERY LITTLE DIFFERENCE … YET,
WOBAMA HAD THE EASIEST ACT IN THE WORLD TO FOLLOW AND BLEW IT …
OR THEM, BY NOT DOING WHAT HE CAMPAIGNED AND WON ON … BUT STILL,
BUSH THE WAR CRIMINAL, MORON, INCOMPETENT, ETC., DOESN’T EVEN
WARRANT A MENTION, SO DUMB AND PATHETIC WAS HE … POOR WOBAMA]
JOBLESS RATE TOPS 9.5% FOR 14 STRAIGHT MONTHS...
USA Won't Recover Lost Jobs 'Until March 2020' At Current Pace … (and they’re
still dreamin’) ...
Buchanan: Food Stamp Nation...
WSJ: Dem unleash IRS and Justice on donors to political opponents … ( but still
no wall street fraud prosecutions … they must be payin’ the big bucks ) ....
GOP Leaders Slam Obama Over Foreign Contributions 'Lie'...
FLASHBACK: Obama Accepting Untraceable Donations...
Dem attack ad sets 'new low for mud'...
REPORT: Brown's wife, not campaign aide, called Whitman a 'w****' … [ I’d be
more concerned with the rudy giuliani kiss of death endorsement and the
folowing seemingly indefensible actions ... Brown Lays Out Sharp Contrast
with Billionaire Opponent in Two New ... Oct 1, 2010 ... The first ad highlights
Jerry Brown's fiscal prudence and job creation ... when she paid herself $120
million right before the company laid off 10% of its workers.]
Dollar continues plunge as 'currency war' concerns linger...
Putin Selling First EURO Bonds...
China Reserves May Hit $2.5 Trillion...
Regulators planning worldwide rules for large firms...
420 banks demand 1-world currency...
this exactly what the DOJ should be doing vis-à-vis the frauds on wall street; and
additionally, the wall street frauds et als should as well be criminally prosecuted,
jailed, fined, and disgorgement imposed.] The agency has authorized lawsuits
against more than 50 officers and directors of failed banks across the country.
MICROSOFT issues its biggest-ever security fix... Tue Oct 12, 2010 5:36pm EDT
* Microsoft addresses record 49 flaws in its software
* Affects Windows, Internet Explorer, Office
* Fixes vulnerability exploited by Stuxnet virus (Adds details on Stuxnet virus,
comments from researcher)
By Jim Finkle BOSTON, Oct 12 (Reuters) - Microsoft Corp (MSFT.O) issued its
biggest-ever security fix on Tuesday, including repairs to its ubiquitous Windows
operating system and Internet browser for flaws that could let hackers take
control of a PC.The new patches aim to fix a number of vulnerabilities including
the notorious Stuxnet virus that attacked an Iranian nuclear power plant and
other industrial control systems around the world.Microsoft said four of the new
patches -- software updates that write over glitches -- were of the highest priority
and should be deployed immediately to protect users from potential criminal
attacks on the Windows operating systems.Microsoft said it also repaired other
less serious security weaknesses in Windows, along with security problems in its
widely used Office software for PCs and Microsoft Server software for business
computers.Microsoft released 16 security patches to address 49 problems in its
products, many of which were discovered by outside researchers who seek out
such vulnerabilities to win cash bounties as well as notoriety for their technical
prowess."This is a huge jump," said Amol Sarwate, a research manager with
computer security provider Qualys Inc. "I think the reason for it is that more and
more people are out there looking for vulnerabilities."The geeks who report such
vulnerabilities to software makers are known as "white hat" hackers. Sarwate
warned that there are also plenty of "black hats," or criminal hackers who look for
vulnerabilities in software that they can exploit to launch attacks on computer
systems.Indeed, the world's biggest software maker said that the patches
released on Tuesday include software to fix a vulnerability exploited by the
Stuxnet virus -- a malicious program that attacks PCs used to run power plants
and other infrastructure running Siemens (SIEGn.DE) industrial control
systems.The virus, which infected computers at Iran's Bushehr nuclear power
plant, was discovered over the summer. Security research Symantec said that it
detected the highest concentration of the virus on computer systems in Iran,
though it was also spotted in Indonesia, India, the United States, Australia,
Britain, Malaysia and Pakistan.So far Microsoft has patched three of the four
vulnerabilities exploited by Stuxnet's unknown creators.The total of 49
vulnerabilities exceeds the previous record of 34, which was set in October 2009
and matched in June and August of this year.The constant patching of PCs is a
time-consuming process for corporate users, who need to test the fixes before
they deploy them to make sure they do not cause machines to crash because of
compatibility problems with existing software. (Reporting by Jim Finkle. Editing
by Robert MacMillan, Gary Hill)
The Two Parties in a Race to the Fiscal Bottom The Daily Bail ‘Polticians lie. The
national debt clock tells the truth. Brand new David Stockman interview with the
Fiscal Times.
---
David Stockman, the former budget director during Ronald Reagan’s first term,
speaks out on the Obama presidency, the state of the economy, the Bush tax
cuts, and what the midterm results might do to the Democratic agenda.
The Bush tax cuts are “unaffordable,’’ he says. Extending them would be a
“travesty.” President Obama’s stimulus program was “futile.” Ben S. Bernanke,
the Federal Reserve chairman, is undermining the whole economy.
Today, Stockman says,
• “I invest in anything that Bernanke can’t destroy, including gold, canned

beans, bottled water and flashlight batteries.”
Stockman, Reagan’s budget director from 1981 to 1985, initially became famous
for his zeal in slashing government spending on almost everything except
defense. Less government and lower taxes, he fervently believed, would
ultimately mean more prosperity for everyone. But he will be best remembered for
confessing, in an interview with William Greider for The Atlantic Monthly, his
disillusionment with the “supply-side” economic policies that led to soaring
deficits under Reagan. “None of us really understands what’s going on with all
these numbers,’’ he declared, along with many other criticisms that nearly got
him fired.
The Fiscal Times [TFT]: What should the president and Congress do about the
Bush tax cuts this year?
David Stockman [DS]:
• The two parties are in a race to the fiscal bottom to see which one can bury
our children and grandchildren deeper in debt. The Republicans were
utterly untruthful when they recently pledged no tax increases for anyone,
anytime, ever. The Democrats are just as bad — running their usual
campaign of political terror on social security and other entitlements while
loudly exempting all except the top 2 percent of taxpayers from paying
more for the massively underfunded government they insist we need.
• In effect, we undertook a national leveraged buyout, raising total credit

market debt to $52 trillion, which represented a 3.6X leverage ratio against
national income or GDP.
The fact is, the Bush tax cuts were unaffordable when enacted a decade ago.
Now, two unfinanced wars later, and after a massive Wall Street bailout and
trillion-dollar stimulus spending spree, it is nothing less than a fiscal travesty to
continue adding $300 billion per year to the national debt. This is especially true
since these tax cuts go to the top 50 percent of households, which can get by, if
need be, with the surfeit of consumption goods they accumulated during the
bubble years. So Congress should allow the Bush tax cuts to expire for everyone.
By doing nothing, the government would be committing its first act of fiscal truth-
telling in decades.
TFT: Should the government provide more stimulus for the economy, or cut
spending to bring the deficit down?
DS: We are not in a conventional business cycle recovery, so stimulus is futile

and just adds needlessly to the $9 trillion of Treasury paper already floating
dangerously around world financial markets. Instead, after 40 years of profligate
accumulation of public and private debt, and reckless money-printing by the Fed,
we had an economic crash landing, which left us with an enduring structural
breakdown, not just a cyclical downturn.
• The only solution is a long period of debt deflation, downsizing and

economic rehabilitation, including a sustained downshift in consumption
and corresponding rise in national savings.
• Continue reading the Stockman interview at the Fiscal Times
Author's Disclosure: None’

My Weekly Market Forecast: Currency Pairs Edition Summers ‘… On this side of
the pond, some 43 million Americans (13% of the total population) are officially
living in poverty. The jobs numbers are a joke and all talk of recovery has been
manufactured via accounting gimmicks or full-scale fraud. I’m detailing more of
this in tomorrow’s article, but for the sake of this week’s forecast, I’m simply
trying to point out that the US economy is on the brink of full-scale disaster and
at some point (possibly this week) this reality could (will) hit the stock market…’
Markets Continue to Rise Despite Poor Data Equedia Network Corporation‘…It

doesn't matter what economic data is being thrown at us. The markets have
continued to soar despite poor economic numbers, growth, and scandals. But
eventually, these numbers will catch up with the markets.It's no secret that the
Obama administration is doing whatever it can to help fuel the growth in the
stock market ahead of the midterm elections in November. He has to. The stock
market has become a leading indicator for confidence in our economy and
judging by Obama's approval rating, the Democrats could easily lose their power
in the Senate. That's why they have continuously pumped money into the markets
…’
Meaningless Monday: Rethinking That Round Earth Idea Davis ‘… As I

mentioned, because other countries aren’t as stupid as we imagine, we need to
create 3 dollars in order to borrow 1. That gives us $1 more debt (out of 10) and
$2 less value to our remaining pile. How long can that go on? One reason our
currency creation is so inefficient is because the people we are giving the money
to, the Banks, aren’t willing to invest it in America either. They have their own
debt holes to fill and most of the money we give them goes into a derivatives
($200Tn and rising) juggling scheme that makes them look solvent and masks
their very, very questionable asset bases.
The banks take the money the Fed is dumping on them and speculate in
commodities and foreign currencies and THEN they buy some TBills in order to
keep the treadmill running. This forces asset bubbles in things like gold and oil
but they too are a complete illusion because it’s only the idiots with dollars that
are buying them - the rest of the World stopped chasing shiny metals in June but
the flat-Earthers in the US just didn’t seem to get the message. Here’s gold priced
in Euros, which is DOWN 8% in 3 months! (chart)
Our stock markets, of course, look just even worse - down 10% to the Euro in the
last 3 months, but that won’t stop the MSM from engaging in the Grand Delusion
that they are feeding to the voters this month - that everything is somehow going
according to plan (what plan?) and happy days are just around the corner - as
long as Americans can keep pretending the World is not round at all but a neat
little square with our great nation on top and in the center.
Well, there’s a lot to be said for getting out while you’re on top - or at least while
there are still enough people fooled into believing you are on top. As the Joker
says in the "what plan?" link above - Nobody panics when things go according to
plan, EVEN WHEN THE PLAN IS HORRIFYING!
That’s what we have now, a horrifying plan to prop up the US Economy based on
the belief that the US is the center of the universe and that the rest of the World
will be fooled by our fiscal nonsense. As you can see from the gold chart and the
S&P chart - we stopped fooling them a long time ago. What will happen when we
can no longer fool ourselves?
It’s a meaningless semi-holiday in America - a day the bulls can only pray will be
quiet, because all my charting indicates that real activity is very likely to come to
the downside this week.’
Bad News Is Still Good News Nyaradi ‘Last week was all about “bad news being
good” and the Fed and QE2. The news was almost uniformly bad, and regarding
QE2 the questions were about how much and when and how much is already
priced into the markets?
Everything else including mixed earnings reports, “Foreclosure Gate” and an

almost unbelievably bad employment report on Friday was overshadowed by the
promise of more “punch in the punchbowl” from Dr. Bernanke and his cohorts at
the Federal Reserve.
In a continuation of the “bad news is good news” theme, markets were able to
rally up to significant resistance and remain vastly overbought while gold
continued its tear and the dollar remained under attack.
The only question that seems to remain is whether or not Dr. Bernanke will be
able to offset the ongoing torrent of negative news and keep our economic ship
afloat.
Looking At My Screens
On the technical front, markets certainly remain in dangerous territory. RSI is at
levels that typically precede significant corrections and prices are up against the
May highs and significant resistance there. We also see stochastic at overbought
levels and investor sentiment at excessively bullish levels.
Contrary to prevailing popular opinion, stock prices can go down as well as up.
The View from 35,000 Feet
On a fundamental level, “bad news continued to be good” as the unemployment

report was a disaster and “Foreclosuregate” threatens to freeze the entire real
estate market and even threaten the financial system for some unknown period of
time.
On the employment front, the economy shed 95,000 jobs instead of a projected
small gain and this fact alone has led to the market expecting a new round of
quantitative easing coming out of the Feds next meeting. The decline in non farm
payrolls wasn’t the only bad news as U6 rose to 17.1% from 16.7%, indicating a
higher level of underemployment than last month even as the overall
unemployment rate remained static at 9.6%.
There are now fewer people working in America than there were two years ago
and for those working, the average workweek remained flat at about 32 hours,
indicating no imminent change in hiring by companies.
The other piece of almost unbelievable news was the announcement that many
foreclosures are in jeopardy because they may not have been carried out
correctly. Allegations of fraud are flying and in response to the flap, foreclosures
have been halted in many states including the suspension of foreclosure
activities by Bank of America in all 50 states. The crisis seems to be set to widen
with the announcement that 40 states attorneys general are joining forces to
launch an investigation into these allegations as early as Tuesday.
This is a complex and murky issue but basically it seems to throw into question
the validity of thousands of foreclosures that have taken place and present the
possibility that this situation could literally freeze the foreclosure process for
some unknown period of time.
The ramifications go beyond a frozen real estate market in that it also could
spread to big banks like Bank of America (BAC), JP Morgan (JPM) and Citigroup
(C) which are highly active in this field and by preventing them from offloading
these non performing loans from their balance sheets for some unknown period
of time.
Estimates of potential fines could range as high as $10 Billion in Ohio alone for
one company being targeted by the Ohio Attorney General and one can only
guess about how deep and black this hole might be.
And finally, a couple of notes regarding QE 2 came from the President of the St.
Louis Fed who said that its quite possible they could wait until the December
meeting to initiate QE2 and a word of warning from the IMF’s chief economist
who said on CNBC, “I don’t think we should fool ourselves. We have used most
of the monetary ammunition we have.”
What It All Means
So, all in all, this is a fine kettle of fish.
The entire global equities market is betting that “Big Ben” can save the world yet
again and that he’ll start in November. Meanwhile we have a dramatically slowing
economy that can’t generate even a small level of job growth and the potential for
a massive implosion in the real estate and credit world involving a gigantic asset
class, Residential Mortgage Backed Securities.
I’ve said before that you can’t make this kind of stuff up and, unfortunately, that’s
still true today as we face the beginning of what could be an almost irrelevant
earnings season.’
Fed's Yellen: Possible that low rates feed bubbles (Reuters) [ Another one of
those daah! moments as if the ‘senile greenspun / no-recession helicopter
ben’ debacle, along with other missteps, isn’t testament to that. ]
America’s Third World Economy Paul Craig Roberts | The latest jobs report
issued shows that America’s transformation into a third world economy
continues.
More Bad News: 10 Things You Should Know About The Latest Economic
Numbers The Economic Collapse | We are in such a rapid decline that it is
hard for most Americans to even comprehend it.
Foreclosure Freeze: JPMorgan Chase, GMAC Deny “Robo-Signers” Led to
Inappropriate Foreclosures Carlo Gabriel Simbajon | “Robo-signers,” a
termed coined by Iowa assistant attorney general, Patrick Madigan, refer to
bank employees or contractors who signed off on mortgage documents
without reading or checking them.
Worldwide Hyperinflation Race FSK’s Guide to Reality | Aiming for stable

exchange rates, other countries are also inflating their money.
Gold Rises as Bankster Currency War Gains Momentum Globalist loan sharks
feign worry. Unemployment is so bad in the United States, the government is
thinking about slapping tariffs on cheap Chinese slave labor products.
Dollar falls as ‘currency war’ concerns linger The dollar fell against the euro and
yen on Monday after the world’s top finance officials failed to reach a
consensus on measures to head off what some see as a looming “currency
war”, analysts said.
Foreclosuregate If you work in the mortgage industry or for a title insurer, you
might not want to make any plans for the next six months. Foreclosuregate
is about to explode. It is being alleged that many prominent mortgage
lenders have been using materially flawed paperwork to evict homeowners.
Fed Intervention Could Lead to ‘Flash Crash’: Strategist The stock market is at
risk of another flash crash because of the Federal Reserve’s liquidity-
boosting measures, Robin Griffiths, technical strategist at Cazenove Capital,
told CNBC Monday.
National / World
Confirmed: Court Did Rely on Oath Keeper Association to Take Baby Stewart
Rhodes | Either you defend the Constitution for everyone, or we may as well
just scrap it and let government agencies and judges do whatever they want
to those they deem bad.
Gold Rises as Bankster Currency War Gains Momentum Kurt Nimmo | A global
currency war will crash national economies and foment social chaos of the
sort the globalists will exploit in order to sell their world government
agenda.
Feds Treat Baby-Snatch Protesters Like Terrorists Paul Joseph Watson | FBI
brings bomb dogs to hospital demonstration in effort to smear dissent
against state kidnapping of children on political grounds as domestic
extremism
Inflation to Make All Americans Billionaires By 2020 National Inflation Association

| When our government creates inflation with the goal of generating higher
incomes, the real incomes of Americans always decline dramatically.
7/7 Investigation Day One: “All Conspiracy Theories Have No Basis” Over five
years after the London bombings of July 7, 2005 took place, an inquest set
up to explore the attacks has declared on day one that any deviations from
the official version of events has no basis in evidence.
CONFIRMED: Court Did Rely on Oath Keeper Association to Take Baby There has
been some confusion about this case, leading some commentators to
believe that the reference to John Irish’s “association” with Oath Keepers
was in some other document, rather than in the affidavit relied on by the
Court’s Order. Alex Jones’ site, in an effort to protect the privacy of the
family, posted excerpts from two different documents, leading some to
question where the reference actually was.
Holdren 1969 : The Science Is Settled – Everyone Starving Before The Year 2000
Turns out we have all been dead for over a decade. So what are we arguing
about? Holdren wrote this in 1969. Real Science Oct 11, 2010 Turns out we
have all been dead for over a decade. So what are we arguing about?
Holdren wrote this in 1969.
World food production must double in the period 1965-2000 to stay even; it must triple if
nutrition is to be brought up to minimum requirements. That there is insufficient
additional, good quality agricultural land available in the world to meet these needs is
so well documented (Borgstrom, 1965) that we will not belabor the point here.
Then he went into a long diatribe about how we are going to run out of water, energy,
food, land – and that the heat from nuclear power plants is going to destroy the climate.
A more easily evaluated problem is the tremendous quantity of waste heat generated at
nuclear installations (to say nothing of the usable power output, which, as with power
from whatever source, must also ultimately be dissipated as heat). Both have
potentially disastrous effects on the local and world ecological and climatological
balance.
This guy must be the life of the party. After a dozen pages of psychotic disaster
prediction, he gets to the punch line. He wants to snip men’s private parts.
If we may safely rule out circumvention of the Second Law or the divorce of energy
requirements from population size, this suggests that, whatever science and technology
may accomplish, population growth must be stopped.
But it cannot be emphasized enough that if the population control measures are not
initiated immediately and effectively, all the technology man can bring to bear will not
fend off the misery to come.’0 Therefore, confronted as we are with limited resources of
time and money, we must consider carefully what fraction of our effort should be
applied to the cure of the disease itself instead of to the temporary relief of the
symptoms. We should ask, for example, how many vasectomies could be performed
by a program funded with the 1.8 billion dollars required to build a single nuclear agro-
industrial complex, and what the relative impact on the problem would be in both the
short and long terms. The decision for population control will be opposed by
growth-minded economists and businessmen, by nationalistic statesmen, by
zealous religious leaders, and by the myopic and well-fed of every description. It
is therefore incumbent on all who sense the limitations of technology and the fragility of
the environmental balance to make themselves heard above the hollow, optimistic
chorus-to convince society and its leaders that there is no alternative but the cessation
of our irresponsible, all-demanding, and all-consuming population growth.
In other words, he proposed forced sterilization based on his hair-brained

theories. His reward for being dangerous, wrong and anti-democratic? Obama
made him his science advisor.
this exactly what the DOJ should be doing vis-à-vis the frauds on wall street;
and additionally, the wall street frauds et als should as well be criminally
prosecuted, jailed, fined, and disgorgement imposed.] The agency has
authorized lawsuits against more than 50 officers and directors of failed
banks across the country.
Jobless numbers pose challenge for Obama, Democrats (Washington Post) [ My

God! You can’t make this stuff up. The lunatics are running the asylum; even
the senile ones like the co-architect of the current debacle, greenspun.
Challenge? I’d say Gordian Knot. And, importantly, no swords allowed …
they’re all in Afghanistan, Pakistan, Iraq, etc… ]The latest report, showing
the unemployment rate remained at 9.6 percent, is the last before crucial
midterm elections in which the troubled job market has emerged as a
paramount issue.
Chorus builds for foreclosure moratorium (Washington Post) [ Sounds like a

plan! After all, foreclosures and recoveries, like oil and water (golly, I must
still have BP / gulf spill on the brain), they don’t mix. And, we all know as per
no-recession helicopter ben, we’re in recovery mode, green shoots and all! ]
Pressure for a nationwide moratorium mounted Friday when Bank of
America, the nation's largest bank, halted evictions in all 50 states and
Senate Majority Leader Harry M. Reid (D-Nev.), who is locked in a tight
reelection campaign, called on other major lenders to follow suit.
Buyer anxiety mounts as foreclosure deals freeze / Homeowners' dreams in
limbo (Washington Post) [ Ah! That’s not so bad … you know … being in limbo,
that is … after all, as the lobotomized VP Biden has warned, ‘Drudgereport:
Biden: 'If We Lose, We're Going To Play Hell'..’ … so that place between heaven and hell
(limbo) ain’t lookin’ so bad … compared to hell that is.] While impact of halted sales has
been worse in regions where lenders need court orders to seize homes, D.C. area
market has also been affected.
Arab League backs Palestinian refusal on talks unless Israel halts West Bank
settlements (Washington Post) [ Lots of backslappin’ in israel mission
accomplished … yeah, another fine mess they’ve gotten the world into …
another set of peace talks down the drain, again sabotaged by the israelis …
not that the israelis had anything in mind other than literally … to talk … out
of both sides of the mouths. ]
Bulls Celebrate Bad News: Dave's Daily ‘The unemployment report came in
"worse than expected" but in this Orwellian environment when the mantra is:
"good news is good and bad news is better", well then, that's the way we roll.
Bulls like the notion of more QE, zero interest rates and Washington gridlock. As
to the latter, distrust of government competence and fiscal discipline has never
been more universal. So we rallied... However, things weren't all peaches and
cream since chip equipment maker Novellus (NVLS) issued a warning pulling
down its shares and dragging others down with it. And, while it may seem nice
that many banks are halting foreclosure procedures it really just postpones the
inevitable and makes things harder for shareholders--unless another bailout is in
the works. Markets are "forward-looking" and if the current theory holds, there
must be a lot of bad news ahead! …’
The Real World vs. the Stock Market Reitmeister ‘September's Employment
Situation was worse than expected Friday morning. Yet bad news is good news
these days for those who think a second round of Fed quantitative easing (QE2)
will bolster the markets. So stocks bolted into positive territory on the day,
pushing up to Dow 11,000.
It’s an odd dichotomy. We have a somewhat improving economy. Yet the average
person does not feel better about the situation. That’s because either they or
someone close to them is out of work. (The classic economic joke is that a
Recession is when your neighbor is out of work. A Depression is when you are.)
Along these lines I noticed something odd today. I drove to my children’s school
for Parent-Teacher conferences. The school is 14 miles away along fairly busy
roads. On the route are three McDonalds. That sounds fairly normal. But then I
saw five Cash for Gold locations. Two of them are brand new; the other three
came around just over the past couple years.
Yes, gold prices are high… but the real reason for the existence of these places is
for people to trade in family heirlooms for cash because they are going broke.
Then throw in all the vacant stores and it’s hard to get a sense that things are
truly getting better.
So why are corporate profits going higher? Three main reasons:
1) Major cost cutting. Mostly on the staffing side of the equation. So each dollar in
revenue produces more profit.
2) Modestly improving US economy moves up revenue a bit. Combine that with #1
above and it creates attractive year over year profit growth.
3) About half of US corporate profits these days come from overseas. Europe
may be weak, but growth in China, India, Brazil etc. more than makes up for that
shortfall.
This is why healthy corporate profits and a rising stock market seem to be
disconnected from the realities in our own backyards. The good news is that
conditions in the US should keep modestly improving, which certainly bolsters
the case for the stock market going forward. Combine this with the alternatives to
the stock market right now are not attractive.
Holding cash? No thanks.
Treasuries? That bubble is going to pop sometime (and yes I would recommend
buying TBF or TBT for when that party takes place).
Gold? That is getting frothy right now. I might be tempted to pick up some on a
pull back. But my history of trading gold is poor. In my long term account I’ve
been riding the bull rally since 2002 when prices were around $300 per ounce.
Still have plenty of shares on hand, mostly GDX (gold miners ETF).
There is lots in store next week when earnings season heats up. If good results
combine with healthy guidance for the future, then the market will move to the
recent highs of Dow 11,300. If the results are poor, then we'll probably see a
retrace to the 50/200 day moving averages which are converged at around 10,500.
My bet is that we do make it to 11,300. I'm not expecting much beyond that til next
year.
My Two Cents
During the day I read many other investment articles of interest. Here are links to
some new ones with my two cents added underneath.
Rail Traffic Maintains Year High Levels (Todd Sullivan)
There are a lot of estimate increases recently for the major rails. This is a very
positive sign going into earnings season. I recently picked up some UNP because
of it. But no shame in CSX Corp. (CSX), Kansas City Southern (KSU), Norfolk
Southern (NSC) etc.
Gaining Traction with Caterpillar? (Ray Merola)
All the fundamentals are going right for them including the recent drop in the US
dollar making their exports more attractive. I personally prefer Cummins (CMI)
and Joy Global (JOYG). But no shame in owning CAT.
We Don't Need QE2 (Calafia Beach Pundit)
Agreed. No shortage of money. And no person in their right mind would hold
cash right now if they felt there wasn't a better way to get a return. So if they are
not risking that money it's because the reward isn't there. That is the problem.
Disclosure: I own shares in JOYG, CMI and UNP
Bank of America halting all foreclosure sales The Washington Post | Bank of
America said Friday it is halting all foreclosure sales and foreclosure
proceedings nationwide while it reviews the documents being used to justify
homeowner evictions.
the dollar lower.
Federal Reserve Officials: Americans Are Saving Too Much Money So We Need
To Purposely Generate More Inflation To Get Them Spending Again Some
top Federal Reserve officials have come up with a really bizarre proposal for
stimulating the U.S. economy. As unbelievable as it sounds, what they
actually propose to do is to purposely raise the rate of inflation so that
Americans will stop saving so much money and will start spending wildly
again.
World Risks Greater Depression if Currency Tensions Escalate: Mobius Rising

tensions amid an escalating global currency war has sparked talk of capital
controls, but such a move would be dire for markets, warned Mark Mobius,
executive chairman of Templeton Emerging Markets Group on CNBC Friday.
Grayson Sends Letter To Geithner, Bernanke Demanding Foreclosure Freeze,

Warns Of Systemic Bank Failure Risk Alan Grayson is back on the scene,
having sent a letter to Financial Stability Oversight Council which includes
pretty much all of Wall Street’s pawns, including Bernanke, Geithner, Bair,
Gensler, Walsh, and DeMarco, in which he asks the FSOC to “suspend
foreclosures until this problem is understood and its ramifications dealt
with.”
---------------------------------------------------------------------------------------------------------
-----------
The news was bad on the jobs front, but stocks rally anyway. The new b*** s*** story,
things so bad that more fiat Weimar dollar currency will be injected into ‘the
system’ (QE, etc.) and presumably find their way to stocks for the old ‘churn-and-
earn’. This is a great opportunity to sell / take profits since, beyond the ‘anything
goes’ pre-election spin, market-frothing, etc., there’s much, much worse to come.
Previously: This is so owing to the irrevocable structural shift (discussed many
times on this site) that has occurred in the most negative sense for the defacto
bankrupt u.s.. The ol’ days are done! It’s a whole new ballgame. The following is a
pragmatic summary explanation of the short-term that is not, nor ever has been
sustainable since the money for the churn-and-earn worth less paper movement
has to come from some real place which is downside all the way for solid and real
economic growth (don’t forget; the so-called minds that brought on this continued
debacle for which frauds they’ve not been prosecuted are, with the help of
legislated mark to anything accounting rule changes and churn-and-earn high
frequency programmed trading, now flush with the proceeds of their multi-trillion
dollar fraud / scam. Indeed, they’re shootin’ for 500 dollar loaves of bread and 1
dollar stocks selling for like amount
THE NEW WALL STREET FRAUD / SCAM- An easy to understand, illustrative, simple (if
not simplistic) analogy, though not perfect, to wall street’s current scam / fraud with
corrupt fed / government cooperation is as follows:
(These Amounts $1 LOAF

$1 SHARE $1 PAPER $1 PIECE
Are Not OF
OF DOLL OF $1 BOND $1 CD
Real But BREA
STOCK AR GOLD
Illustrative) D
$2
(but the very

Valuation after
tempor
doubling
ary $1 $2 $2 $1 $1
amount of
spike
money
less
(printing,
than
QE, etc.) in
that
dollars
accord
ed hard
assets)
It is axiomatic that inflation bankrupts the lender (as a simplistic rule). Indeed, the bond
and cd (both loans, your assets) are still worth the debased $1 though they buy but
half the real, hard assets ie., gold, precious metals, commodities, etc. (hence, the
appreciation we’ve seen). The share of stock, though paper, seems to enjoy an
advantage over the aforesaid debt instruments particularly in light of the artificial
demand that the computerized buy programs along with the QE funds made
available to stimulate demand for these paper shares and the spin accorded same.
The problem is, while the churn and earn commissions are also eating away at the
surplus funds which are artificially enhancing demand for the paper shares of
stock, the quality of earnings and the stability of the earnings (higher costs, etc.) of
the companies of said paper shares are negatively impacted which historically has
ended quite badly for all but the frauds on wall street. Moreover, unless they’re
complete fools, who would buy debt instruments in such an environment, least of
all those from defacto bankrupt america. There has never, nor could there be an
exception to this bad outcome since no new value is created by increasing the
amount of money by printing more and the debasement thereof, particularly where
there has been an irrevocable structural shift in real economic terms precluding
same and now as well, a deficit scenario that is insurmountable and has begun to
eat into GDP. The foregoing also is an attempt to drive / herd investors into stocks
which enables the insiders to sell high as well as to churn and commission the
artificial bubble, however ephemeral.
The glaring problem is also the multi-ethnic mob-infested, corrupt, overly extravagant
and costly ny-nj-ct metropolitan area (but particularly new york / wall street and
new jersey) sinkhole / drain for the rest of the nation.
We Are Looking at Trillion-Dollar Plus Annual Interest Payments on U.S. Debt Owens
Krugman: We’re Going To Have To Default On Our Debt One Way Or Another Some
dour commentary from Paul Krugman this morning on the implications of our
monster debt. Economists Herald New Great Depression The world is currently
experiencing the modern day equivalent of the Great Depression, according to a
prominent economist who has added his voice to scores of others now forecasting
ongoing economic doom on a scale not seen since the 1930s.) , and my position
and that of demographer Dent ( Prechter and many others are also in this camp
although I believe he does not factor in sufficiently the debasement of the u.s.
currency / dollar in arriving at his numbers which do however, at 1,000 on the DOW
reflect real, as opposed to inflated values of 3-4,000 owing to the ever more
worthless Weimar dollars which provides ‘spin material’ for the wall street frauds
but is really quite ominous going forward, and very detrimental in real economic
terms.) [This is a global depression. This is a secular bear market in a global
depression. The past up move was a manipulated bull (s***) cycle in a secular bear
market. This has been a typically manipulated bubble as has preceded the prior
crashes with great regularity that the wall street frauds and insiders commission
and sell into. This is a typical wall street churn and earn pass the hot potato scam /
fraud as in prior crashes’. This national decline, economic and otherwise, will not
necessity of prosecution is founded in the circumstances surrounding and the
mindset of what one would deem ‘antisocial personalities’ (disorders) ( I prefer the
prior descriptor of such as psychopathic; the euphemistic ‘sociopathic’ was ‘far too
understanding’ in my view of the social / environmental factors allegedly giving rise
to such negative / destructive behaviors. I don’t buy it.) Specifically, accepted
studies / findings have concluded that the essential defect in those with antisocial
(psychopathic) personality disorders is an inability to respond normally to fear-
inducing stimuli, leading in turn to an inability to inhibit responses that should, but,
as with wall street, have not resulted in punishment. Thus, while I think most on
wall street have proven themselves criminally insane (for the money, ie., Stewart,
‘Den of Thieves’ / ‘Liar’s Poker’, the most recent financial debacle / crisis, which
continues to this day); at the least, owing to a lack of fear of prosecution /
punishment, they have become defacto sociopathic / psychopathic. ] Krugman:
It's All Downhill From Here Cullen Roche Love him or hate him Paul Krugman has
been awfully right with regards to the macro picture in the last few years. He’s one
of the rare economists who had the foresight to see the housing bubble and the
likelihood of economic downturn that would result from it. Krugman recently
caused a stir when he said the US economy was headed for the third depression.
Here Are 13 Signs That We’re Actually In A Depression Right Now Gregory White |
David Rosenberg has outlined, in his latest letter, the 13 reasons with this so-called
recovery is actually a depression… David Rosenberg has outlined, in his latest
letter, the 13 reasons with this so-called recovery is actually a
This is what a depression is all about — an economy that 33 months after a recession
begins, with zero policy rates, a stuffed central bank sheet, and a 10% deficit-to-
GDP ratio, is still in need of government help for its sustenance.
especially around early 2011, but if the banking system continues to implode a deep
downturn or depression could begin sometime in 2009 instead of 2010.
Dow will Fall to 3,800 – 4,500 by 2012 Nasdaq will Fall Below 1,100, its 2002 low, by late
2010 or mid-2012 at the latest. Inflation will Increase until mid- 2010 and then turn to
Deflation Interest Rates will Increase U.S. Dollar will Decline Housing will Decline by 40 –
60% from Today’s Levels Greatest Economic and Banking Crisis since the 1930s will Occur
Between 2010 and 2012).
Just a push of the computer programmed trade button and off we go, reality / valuation /
economics be damned. In real security analysis (very simplified / summarized), as
opposed to the continued frauds on wall street, one must begin with the largest and
most significant aggregate (a simple word picture / analogy: ‘rising tide lifts all
boats’). If you get this right, the probabilities in your favor are substantially
enhanced. From there, you want leading industries, and leading companies within
said leading industries (again, larger aggregates then picks, to enhance
probabilities, not guarantees, in your favor). Your time frame, 1-3-5 yrs tops for
projections, (including income statement/EPS, balance sheet, and applying an
appropriate P/E – a detailed, multi-faceted approach beyond what could be
described in this summary); and, that’s all they are, projections. Beyond that time
frame, your guess. On fraudulent wall street, every day, though already discounted
in large part (6-8 mos, approx.), the market spins, churns, and with lightning fast
computerized high-frequency trade programs commissions in huge volumes like no
other time in financial history when real valuation meant something, with no net
economic value added, but very lucrative to the frauds on wall street, which
ultimately is a net detriment to the economy / the nation /and other industries as
we’ve seen and as described elsewhere on this site and in these posts
http://albertpeia.com . Preposterously, they even sometimes refer to seasonal
factors as if hearing them for the first time and ‘explaining’ an up move (almost
invariably already discounted). Today, they shrugged off the deepening economic
reality despite the election year frothing / manipulations.
UNDERSTANDING THE ( LAST BUT ONGOING SINCE WORTHLESS TOXIC ASSETS /

PAPER, THE PRODUCTS OF THEIR FRAUD, NOW MARKED TO ANYTHING AS PER
LEGISLATED FASB RULE CHANGE STILL OUT THERE IN THE MANY TRILLIONS) GREAT
WALL STREET FRAUD (SUMMARIZED - as posted on this site on the dates as indicated)
*(12-30-07) The best and easiest to understand analogy, though not perfect, to the wall
street markets is the kiting of checks at lightning computerized trading speed on which
commissions are taken although there is nothing of real value underlying their fraudulent
scheme. (10-10-08) Now to bring this analogy closer to the current crisis, assume as is
the case of the worthless sub-prime securities, there is no charge off/debit as is
ordinarily the case with a cleared check and the worthless 'collateralized sub-prime
security' is repackaged, resold, recommissioned based upon as collateral the original
worthless security which is in turn repackaged, resold, recommissioned based upon as
collateral the subsequent worthless security, and so on to the tune of (hundreds of)
trillions of this worthless, fraudulent paper (blatent securities fraud which must be
prosecuted and fraudulently derived profits disgorged).
*(12-31-07) HIGH FREQUENCY PROGRAMMED TRADING: The ubiquitous
computerization of wall street functions, the enhancement/advance/integration of the
said computer equipment/peripherals in terms of computing power and speed, along
with the concomitant advance/sophistication of the programming concerning same has
enhanced the ability of the frauds on wall street to effect their frauds with blinding speed
vis-à-vis the funds entrusted to their care by way of programmed trades, ie., buy, sell,
stop limits, etc.. An example (though not perfect) is illustrative: Dow drops 200 points as
programmed sell orders kick in with some not so fudged negative news. Nothing
changes but the following day the market rises 205 points on programmed buy orders (a
little higher despite the absence of any positive news). Hence, the huge swings which
have become ever so more prevalent. Though nothing has changed, hundreds of millions
of dollars without relation to any value added (in economic terms, service, etc.) is taken
in commissions (percentages, points, spreads) by the frauds on wall street on huge
computerized trading volume (hence, the multi-billion dollar bonuses on top of huge
salaries, etc.). The fact is that these funds entrusted to them are so large that such
computerized “buys” can simulate other than rational demand causing prices to rise
solely to generate huge commissions to them and new funds coming in (as in a ponzi
scheme). The corrupt government has been complicit in terms of false economic reports,
legislation protecting the fraud (ie., exemption from RICO accountability, etc.), while the
courts are also corrupt facilitators (ie., new york, new jersey, california, etc., and similarly
don’t count on arbitration panels). There was a time when transaction costs mattered in
financial investment decisions. The trades/commissions are not a net positive for the
economy but are indeed of great benefit to the recipients of same (who like termites eat
away at other peoples’ money, and whose marginal propensity to consume is less than
those allocating their monies /pensions /401ks/savings etc.; hence, the mess to follow).
Finally, the NASDAQ/tech has become the “safe haven” but in reality as in the dot.com
bust days are just the great story without much fundamental understanding that keeps
the fraudulent ball rolling.
(1-01-08) REMEMBER: MORE CONTRIVED WASTEFUL COMMISSIONS TO THE WALL
STREET FRAUDS, THE LEVEL AND PERCENTAGE OF WHICH SHOULD BE EXAMINED IN
LIGHT OF COMPUTERIZATION AND DECREASED COSTS ATTENDANT TO SAME
ESPECIALLY SINCE ONLY A VERY SMALL FRACTION OF WHAT WALL STREET DOES IS
A NET POSITIVE FOR THE ECONOMY (NEW INVESTMENT CAPITAL VIA, IE., IPO’S), THE
REST IS TANTAMOUNT TO A (ECONOMICALLY) "WASTEFUL TAX" (ON THE ECONOMY)
VIA 'CHURN AND EARN' COMPUTERIZED PROGRAMMED TRADES.
*(1-3-08) $14 billion ($21 billion in 2006) in bonuses to the lunatic/frauds on wall street for
a commissionable (sub prime bundled) fraud well done, inflation up, dollar down, oil
prices up, manufacturing down; one analyst/reporter/journalist from inside sources pegs
the sub-prime dollar value of the shilled worthless paper at $516 TRILLION (even a
percentage of same renders the problem unfixable-hence, culpable parties must be held
accountable and disgorge their ill-gotten gains from, ie., commissioning worthless paper,
taking a point here or there and fraudulently passing same on, ad infinitum, etc.). Of
course there are also a plethora of garden-variety frauds as always, ie., 10-B-5, insider
trading, etc..
*(10-10-08) Now to bring the initial check-kiting analogy closer to the current crisis,
realize as is the case of the worthless sub-prime securities, there is no charge-off/debit
as is ordinarily the case with a cleared check and the worthless 'collateralized sub-prime
security' is repackaged, resold, recommissioned based upon (collateralized by) as
collateral the original worthless security which is in turn repackaged, resold,
recommissioned based upon as collateral the subsequent worthless security, and so on
(a geometric progression) to the tune of (hundreds of) trillions of this worthless,
fraudulent paper (blatent/flagrant securities fraud which must be prosecuted and
fraudulently derived profits disgorged).
THE BAILOUT FRAUD/SCAM
This is not brain surgery and the fraud, bonuses/compensation (mortgages, subprime
and otherwise, are only a relatively small portion of the fraud / scam providing “cover /
collateral” for the worthless but heavily commissioned paper over and over again in a
multiplicity of different forms of worthless paper) in the mega-billions should first be
disgorged before taxpayers are forced to pony up and pay the frauds again for their fraud
which caused the problem in the first instance, must be prosecuted. It should also be
noted that despite the rhetoric, the wall street bailout will NOT solve the crisis or
eliminate the economic pain except to make permanent the fraudulent wealth transfer to
the most well healed heals/frauds/criminals in the nation who caused the so-called crisis
by their greed/corruption/fraud.
Stocks surge to highest level in nearly five months (Washington Post) [ Come on! The
service sector? That non-productive morass of paper pushin’, commissionin’, make-work
sector, in an election year no less, the impetus for a market rally along with Japan’s zero
interest rate prep for yet another lost decade … I don’t think so! What total b*** s***.
---------------------------------------------------------------------------------------------------------------
-------------------------------
Jobless numbers pose challenge for Obama, Democrats (Washington Post) [ My

God! You can’t make this stuff up. The lunatics are running the asylum; even
the senile ones like the co-architect of the current debacle, greenspun.
Challenge? I’d say Gordian Knot. And, importantly, no swords allowed …
they’re all in Afghanistan, Pakistan, Iraq, etc… ]The latest report, showing
the unemployment rate remained at 9.6 percent, is the last before crucial
midterm elections in which the troubled job market has emerged as a
paramount issue.
Chorus builds for foreclosure moratorium (Washington Post) [ Sounds like a
plan! After all, foreclosures and recoveries, like oil and water (golly, I must
still have BP / gulf spill on the brain), they don’t mix. And, we all know as per
no-recession helicopter ben, we’re in recovery mode, green shoots and all! ]
Pressure for a nationwide moratorium mounted Friday when Bank of
America, the nation's largest bank, halted evictions in all 50 states and
Senate Majority Leader Harry M. Reid (D-Nev.), who is locked in a tight
reelection campaign, called on other major lenders to follow suit.
Buyer anxiety mounts as foreclosure deals freeze / Homeowners' dreams in

limbo (Washington Post) [ Ah! That’s not so bad … you know … being in limbo,
that is … after all, as the lobotomized VP Biden has warned, ‘Drudgereport:
Biden: 'If We Lose, We're Going To Play Hell'..’ … so that place between heaven and hell
(limbo) ain’t lookin’ so bad … compared to hell that is.] While impact of halted sales has
been worse in regions where lenders need court orders to seize homes, D.C. area
market has also been affected.
Bulls Celebrate Bad News: Dave's Daily ‘The unemployment report came in
"worse than expected" but in this Orwellian environment when the mantra is:
"good news is good and bad news is better", well then, that's the way we roll.
Bulls like the notion of more QE, zero interest rates and Washington gridlock. As
to the latter, distrust of government competence and fiscal discipline has never
been more universal. So we rallied... However, things weren't all peaches and
cream since chip equipment maker Novellus (NVLS) issued a warning pulling
down its shares and dragging others down with it. And, while it may seem nice
that many banks are halting foreclosure procedures it really just postpones the
inevitable and makes things harder for shareholders--unless another bailout is in
the works. Markets are "forward-looking" and if the current theory holds, there
must be a lot of bad news ahead! …’
The Real World vs. the Stock Market Reitmeister ‘September's Employment
Situation was worse than expected Friday morning. Yet bad news is good news
these days for those who think a second round of Fed quantitative easing (QE2)
will bolster the markets. So stocks bolted into positive territory on the day,
pushing up to Dow 11,000.
It’s an odd dichotomy. We have a somewhat improving economy. Yet the average
person does not feel better about the situation. That’s because either they or
someone close to them is out of work. (The classic economic joke is that a
Recession is when your neighbor is out of work. A Depression is when you are.)
Along these lines I noticed something odd today. I drove to my children’s school
for Parent-Teacher conferences. The school is 14 miles away along fairly busy
roads. On the route are three McDonalds. That sounds fairly normal. But then I
saw five Cash for Gold locations. Two of them are brand new; the other three
came around just over the past couple years.
Yes, gold prices are high… but the real reason for the existence of these places is
for people to trade in family heirlooms for cash because they are going broke.
Then throw in all the vacant stores and it’s hard to get a sense that things are
truly getting better.
So why are corporate profits going higher? Three main reasons:
1) Major cost cutting. Mostly on the staffing side of the equation. So each dollar in
revenue produces more profit.
2) Modestly improving US economy moves up revenue a bit. Combine that with #1
above and it creates attractive year over year profit growth.
3) About half of US corporate profits these days come from overseas. Europe
may be weak, but growth in China, India, Brazil etc. more than makes up for that
shortfall.
This is why healthy corporate profits and a rising stock market seem to be
disconnected from the realities in our own backyards. The good news is that
conditions in the US should keep modestly improving, which certainly bolsters
the case for the stock market going forward. Combine this with the alternatives to
the stock market right now are not attractive.
Holding cash? No thanks.
Treasuries? That bubble is going to pop sometime (and yes I would recommend
buying TBF or TBT for when that party takes place).
Gold? That is getting frothy right now. I might be tempted to pick up some on a
pull back. But my history of trading gold is poor. In my long term account I’ve
been riding the bull rally since 2002 when prices were around $300 per ounce.
Still have plenty of shares on hand, mostly GDX (gold miners ETF).
There is lots in store next week when earnings season heats up. If good results
combine with healthy guidance for the future, then the market will move to the
recent highs of Dow 11,300. If the results are poor, then we'll probably see a
retrace to the 50/200 day moving averages which are converged at around 10,500.
My bet is that we do make it to 11,300. I'm not expecting much beyond that til next
year.
My Two Cents
During the day I read many other investment articles of interest. Here are links to
some new ones with my two cents added underneath.
Rail Traffic Maintains Year High Levels (Todd Sullivan)
There are a lot of estimate increases recently for the major rails. This is a very
positive sign going into earnings season. I recently picked up some UNP because
of it. But no shame in CSX Corp. (CSX), Kansas City Southern (KSU), Norfolk
Southern (NSC) etc.
Gaining Traction with Caterpillar? (Ray Merola)
All the fundamentals are going right for them including the recent drop in the US
dollar making their exports more attractive. I personally prefer Cummins (CMI)
and Joy Global (JOYG). But no shame in owning CAT.
We Don't Need QE2 (Calafia Beach Pundit)
Agreed. No shortage of money. And no person in their right mind would hold
cash right now if they felt there wasn't a better way to get a return. So if they are
not risking that money it's because the reward isn't there. That is the problem.
Disclosure: I own shares in JOYG, CMI and UNP
Bank of America halting all foreclosure sales The Washington Post | Bank of
America said Friday it is halting all foreclosure sales and foreclosure
proceedings nationwide while it reviews the documents being used to justify
homeowner evictions.
the dollar lower.
Federal Reserve Officials: Americans Are Saving Too Much Money So We Need
To Purposely Generate More Inflation To Get Them Spending Again Some
top Federal Reserve officials have come up with a really bizarre proposal for
stimulating the U.S. economy. As unbelievable as it sounds, what they
actually propose to do is to purposely raise the rate of inflation so that
Americans will stop saving so much money and will start spending wildly
again.
World Risks Greater Depression if Currency Tensions Escalate: Mobius Rising

tensions amid an escalating global currency war has sparked talk of capital
controls, but such a move would be dire for markets, warned Mark Mobius,
executive chairman of Templeton Emerging Markets Group on CNBC Friday.
Grayson Sends Letter To Geithner, Bernanke Demanding Foreclosure Freeze,

Warns Of Systemic Bank Failure Risk Alan Grayson is back on the scene,
having sent a letter to Financial Stability Oversight Council which includes
pretty much all of Wall Street’s pawns, including Bernanke, Geithner, Bair,
Gensler, Walsh, and DeMarco, in which he asks the FSOC to “suspend
foreclosures until this problem is understood and its ramifications dealt
with.”
Fed weighs a more focused response (Washington Post) [ Yeah! And, they better
be quick about it because, when it comes to the fed, the plethora of rumors of
their imminent demise are NOT greatly exaggerated. Drudgereport: America on
'brink of a Second Revolution'... [This is more real than most people can imagine!
] The Fed is dead, maybe by 2012 Paul B. Farrell - MarketWatch ARROYO
GRANDE, Calif. (MarketWatch) — ‘OK, so Nassim Nicholas Taleb, the “Black
Swan” author, actually said: “The Fed won’t exist in 25 years.” Warning: It’ll
happen much sooner, fallout of the coming Second American Revolution. It’s
inevitable: Wall Street banks control the Federal Reserve system , it’s their
personal piggy bank. They’ve already done so much damage, yet have more
control than ever. Tea-party activists in their own words Tea-party activists talk
to Russ Britt on what their movement represents. Warning: That’s a set-up. They
will eventually destroy capitalism, democracy, and the dollar’s global reserve-
currency status. They will self-destruct before 2035 … maybe as early as 2012 …
most likely by 2020. Last week we cheered the Tea Party for starting the
countdown to the Second American Revolution. Our timeline is crucial to
understanding the historic implications of Taleb’s prediction that the Fed is
dying, that it’s only a matter of time before a revolution triggers class warfare
forcing America to dump capitalism, eliminate our corrupt system of lobbying,
come up with a new workable form of government, and create a new economy
without a banking system ruled by Wall Street. Read 'America on the brink of a
Second Revolution.' …’ ]As the Federal Reserve considers what steps it might
take to try to boost growth, attention has focused on whether the Fed might buy
an enormous quantity of bonds to flood the economy with some specific amount
of money.
IMF official by day, author of financial thriller by night (Washington Post)

[ Because you can’t make this stuff up, if he sticks to reality (truth stranger
than fiction), ie., magnitude of the extant fraud, debacle, etc., it will be a
doozy! ]The chief of the agency's policy review division has written a book
that's not for the faint of heart.
Afghanistan: U.S. and Afghans at odds over Kabul Bank reform (Washington
Post) [ Wow! Given defacto bankrupt america’s continued and covered-up
financial debacle, any Afghan resistance to the american model / modus
operandi is tantamount to ‘proof of life (rationality)’. ]
Firms use record piles of cash to buy back stock, not create jobs (Washington
Post) [ And just when we thought that fake government pre-election labor
reports (expected by fraudulent wallstreet, ie., 10-8-10, etc.) was the only
market frothing fixed game in town. ] Plus these companies are buying back
their stock in droves.
ADP Offered a Clear Warning for Friday's Jobs Report Kaminis ‘ADP offered its
estimate of private nonfarm payrolls Wednesday, but due to the proximity of the
data to Friday's Labor Department truth, and given recent comfort with the
service sector, I think the market overlooked a glaring warning signal.
ADP Employment Services reported its data on September's private labor market
Wednesday, and the news was not good. The report covering the net change in
the private labor force serves as a precursor and predictor (for some) for the
Labor Department's Employment Situation Report.
September's release showed a net decrease of 39,000 private nonfarm payrolls.

The data only offers an estimate really of a section of the Labor Market's
aggregate data, which will also contain public payroll changes.
There is no economists' consensus forecast for the ADP report, and so less
impetus for market reaction on a higher or lower result. That said, September's
news compared against an increase of 10K jobs in August, revised from the
initially reported decrease of 10K. Also, it represented a change in direction
(despite August's initial negative), and followed seven consecutive months of
positive change in the private job market.
ADP rightly notes that those last seven months of growth were negligible, but
errs in its determination that this change is therefore insignificant. Rather, the
change supports the market's worst fear, that the economy is paralyzed and
impotent without government stimulus.
ADP also noted broad-based declines across industry sectors. There was one
bright spot, and it should be appreciated, because the dominant service-
providing sector showed an increase in payrolls of 6,000 in September, marking
the eighth consecutive monthly gain for the important segment. However, it was
not enough to offset an employment decline in the goods-producing sector of
45,000.
I was first to point toward slippage in manufacturing, before there were any signs
of it, as I anticipated that panic induced production cuts and capacity
concentration would lead to a counter reaction to restock bare shelves (a bounce
before normalization to still poor sales levels); and I noted emerging market
demand continued. ADP estimates manufacturing employment declined by
17,000, the third consecutive monthly drop, and now the majority of gurus are on
board with my forecast for segment concentration.
ADP says construction employment likely dropped by 28,000 during September,

and since there have been few projects underway in the residential arena, beware
commercial real estate investors. The financial services sector lost 13K jobs in
September; perhaps pre-bonus firings played a role here. The environment favors
the employer these days, and so few bonuses are secure… and fewer jobs.
Jobs also dropped across all sizes of firms, marking an -11K change in large
firms; -14K in medium; and -14K in small firms. ADP's chart also seems to clearly
depict a double-dip, and though employment has been historically labeled a
lagging indicator, I continue to expect it to act as an anchor this time around, due
to the depth and degree of cuts. Further, advances in technology have driven
permanent job elimination, with the recession only applying catalyst for the
eventual reductions to efficient capacity.
I reiterate (from my weekly copy) that since this estimate from ADP only precedes
the more important report by two days, it is limited in its impact potential and
rendered mute by the Labor Department's pending truth. Traders are waiting the
48 hours before banking cash or putting it to work, as evidenced by the Dow's
fractional move Wednesday. However, if this data point was reported in isolation,
it would have weighed heavily on stocks Wednesday. In fact, I expect
confirmation of weakness by the Labor Department, barring weird changes in the
size of the labor force, will drive home this same message on Friday. To spell it
out, I think it's a short-term sell signal, and see the slight Tuesday uptick in the
ISM Non-Manufacturing Index (with confirmation for services here) too weak to
hold against this weight of labor. Disclosure: No positions
Market Outlook: It's Not, NOT a Growth Story Goldman ‘Yesterday’s miserable
ADP data blew up NASDAQ while the Dow eked out a small gain. The lesson? The
recent rally was driven BOTH by fundamentals (strong corporate cash flows and
balance sheets that benefit from low long-term interest rates) as well as the vain
hope that the economy would start growing again. The tech sector’s improvement
reflected the latter view. I don’t believe it, so I am staying away from tech stocks,
financials, retailers and so forth.
Quantitative easing, once again, won’t create economic growth. It will just reprice
assets. In the Keynesian model, it is supposed to drive money out of safe-haven
refuges (which have a negative real return) and into brick-and-mortar and,
presumably job creation. What it does, in fact, is turn gold into a safe haven, and
force an increase in the savings rate! That’s because prospective pensioners who
thought they could retire with a 7% annuity are looking at a 4% annuity instead.
They simply have to save more, and that’s bad for consumption. The cost of
money isn’t the main obstacle to job creation. Obamacare and associated
regulatory burdens are the big problem.
The trouble is that the Fed is run by people who think that jobs are produced by
mathematical equations, when they are in fact created by skill, guile, risk, and
sleepless nights …’
U.S. funds go to Taliban, warlords, report finds (Washington Post) [ Well, defacto
bankrupt america can afford it; after all, how much more defacto bankrupt can the
nation get? Well, then again, despite the headline, a lot of those hundreds of
billions are finding their way back into american hands, albeit dirty ones, like, for
example the 360 tons of hundred dollar bills flown into Iraq and still unaccounted
for, etc.. ]Military has minimal knowledge of and virtually no control over
thousands of Afghans it pays to guard operating bases, bipartisan report finds.


sustenance.

and 2012). ]
the dollar lower.
Dollar set for sharp decline, Goldman forecasts The dollar will embark on a sharp
decline over the next 12 months, Goldman Sachs forecast on Wednesday, as
policy makers in Washington look poised to press the trigger on another
round of printing money.
Currency War? Why Countries Are Rushing to Devalue The global race to the
bottom in currencies may be less a war than it is an inevitable reaction to the
growth of developing countries and the need for export-driven economies to
stay competitive.
Gold hits record, set for best week in six months Gold rose to a third successive
record high on Thursday, putting it on track for its strongest weekly
performance in six months, as expectations for the Federal Reserve to prop
up the economy undermined the dollar.
Norcini, Sinclair – Financial Hurricane To Collapse the System King World News
conducted an interview today that included comments from Jim Sinclair and Dan
Norcini regarding incredibly important events that are unfolding in both the
financial system and the gold and silver markets. This interview describes what
may very well bring the financial system to its knees.
National / World
Microsoft (the non-performing monopolist dinosaur and government shill)

Proposes Government Licensing Internet Access Paul Joseph Watson |
State should have power to block individual computers from connecting to
world wide web, claims Charney
Los Angeles Pushes Mandatory Biometric Identification On Students to Condition
Children Anthony Gucciardi | Installing mandatory biometric stations in
schools serves only to prepare students for a lifetime of living on the control
grid.
San Antonio Radio Station Gets Man Fired for Sharing Truth Infowars.com | Radio
host calls Larry Hood “truther idiot” for sharing Infowars.com with bowling
customers.
Top Fed Repeats Ominous ‘Absorb Terror’ Rhetoric Paul Joseph Watson | Attack
on U.S. soil would reinvigorate Obama’s collapsing approval figures.
Please Support Alternative News Activist Post | We are at the crossroads of a

very important time in history.
Microsoft (the dying government monopoly company / shill consisting of a bunch

of slugs) Proposal Opens Door For Government Licensing To Access
Internet A new proposal by a top Microsoft executive would open the door
for government licensing to access the Internet, with authorities being
empowered to block individual computers from connecting to the world wide
web under the pretext of preventing malware attacks.
Pink Floyd Frontman Targeted By ADL For Criticizing Globalist Military Industrial
Complex Legendary Rock group Pink Floyd’s main creative force, Roger
Waters, is locked in a fierce battle with the Anti-Defamation League, after the
group accused Waters of using anti-semitic imagery in his stage show.
Dollar tumbles to fresh 15-year low against yen The dollar tumbled to a fresh 15-
year low at 82.22 against the yen in Tokyo trading hours on Thursday on
persistent fears over the US economic outlook.
Fed Officials Mull Inflation as a Fix The Federal Reserve spent the past three
decades getting inflation low and keeping it there. But as the U.S. economy
struggles and flirts with the prospect of deflation, some central bank
officials are publicly broaching a controversial idea: lifting inflation above
the Fed’s informal target.
Top Fed Repeats Ominous ‘Absorb Terror’ Rhetoric Having already demonized
Americans as the primary domestic terror threat, National Counterterrorism
Center head Michael Leiter is now ominously parroting Barack Obama’s
rhetoric, by indicating that America could absorb a terror attack, another
indication that the threat of a false flag event to reinvigorate Obama’s
collapsing approval numbers is higher than ever.
First Amendment Ruling Destined to Kill Internet Free Speech It now appears
certain the Supreme Court will rule against the First Amendment. “The justices
appeared inclined to set a limit to freedom of speech when ordinary citizens are
targeted with especially personal and hurtful attacks.
Unauthorized US strike kills 4 Pakistanis A non-UN-sanctioned US strike on a

house in Pakistan’s tribal region of North Waziristan has killed four civilians and
injured two others.
Drudgereport: America on 'brink of a Second Revolution'...

GALLUP: UNEMPLOYMENT ACTUALLY AT 10.1% … ( not counting the huge
‘stopped looking fudge factor which brings same to 20 plus percent )...
Government 'likely to understate' final report before midterms...
Election workers could skew job stats...
Job losses in 2009 likely bigger than thought...
UN warns of global unrest over unemployment...
GOLDMAN SACHS: Economy 'fairly bad' or 'very bad' over next 6 – 9 months
(years) ...
Food Stamp Recipients at Record 41.8 Million Americans...
TIME MAG: Anguish and Anxiety...
Fed Officials Mull Inflation as a Fix… Riiiiight! Sounds like a plan! ..
Dollar slide continues...
89,000 stimulus payments went to dead people, prisoners...
OBAMA: GOP takeover of Congress would mean 'hand-to-hand combat' …
[ Ooooh! The fear factor … Well, if wobama the b (for b*** s***) said it, it must be
true … riiiiight!] ...
DOZENS FALL ILL AT OBAMA RALLY … [ Having Swallowed too Much Wobama
B*** S*** … THAT’S WHY]
Airstrike probe finds poor coordination between Pakistan, U.S. (Washington Post)
[ Riiiiight! That coordination thing underlying those unfriendly-fire incidents and
civilian deaths wherever american storm troopers happen to be … Eureka! And all
this while everyone was thinking that the same was just typical americana! ]
Mourning the D.C. burrito man (Washington Post) [ Ah! A sad story. But shake it
off … they’ll be many more burrito carts, and apple carts too, so vibrant the
american economy is now, and prospectively. And, at least he died here and
not in Iraq, Afghanistan, Pakistan, etc.. Private sector sheds 39,000 jobs in
September Reuters | The August figure was originally reported as a loss of
10,000. (Yeah! That better than expected 10,000 number was a rally point for
stocks … but on fraudulent wall street, they rallied the DOW anyway. ]
Residents and working folks in downtown made street cart a part of their
routine, suddenly realizing that the vendor had found his way into their
hearts.
Geithner stokes world pressure on China over currency (Washington Post) [ I say,
‘Look Inward Hell’s Angels’! Is America Under Attack … Or Are the Barbarians
Inside the Gates? Infowars.com Congress and American economists are blaming
China for America’s economic woes. / Good advice from Farrel (infra) ‘Warning:
Never trust the American Treasury Secretary …Remember Hank Paulson, Wall
Street’s Trojan Horse inside Washington? Earlier he had made over half a billion
as Goldman’s CEO. Back in July 2007 before the meltdown he bragged to Fortune
that this is “the strongest global economy I’ve seen in my business lifetime.”
Never trust anything “leaders” like him say. Never.’ ( I don’t believe anything they
say! ) ]The U.S. is trying to escalate international pressure on China to change
how it manages its currency, casting a global focus on what U.S. officials say has
become a major risk to the economic recovery.
Forecast dire for local economies dealing with recession (Washington Post)
[ There should be no surprise here. That’s the way things are in
depressions! Drudgereport: GOLDMAN SACHS: Economy 'fairly bad' or
'very bad' over next 6 – 9 months ( translation: 6 - 9 years) ... This is a
global depression. This is a secular bear market in a global depression. The
past up move was a manipulated bull (s***) cycle in a secular bear market.
This has been a typically manipulated bubble as has preceded the prior
crashes with great regularity that the wall street frauds and insiders
commission and sell into. This is a typical wall street churn and earn pass
the hot potato scam / fraud as in prior crashes’. This national decline,
economic and otherwise, will not end until justice is served and the wall
street frauds et als are criminally prosecuted, jailed, fined, and disgorgement
imposed. ]The fiscal condition of the nation's cities is growing more dire
this year as local governments continue to grapple with the fallout from the
recession, study finds
We Are Looking at Trillion-Dollar Annual Interest Payments on U.S. Debt Owens

‘Last night I was reviewing the Congressional Budget Office's recent outlook to
get a handle on their assumptions (I know, an exciting Monday night!) One of our
astute readers kicked off this exercise by taking a look at the government's debt
and interest rate projections out to 2015. The reader concluded that the call (by
many) that higher interest rates is an inevitability is incorrect. The reason being
that debt payments at higher interest rates would not be possible with debt levels
of this magnitude. As has been the case in Japan, rates HAVE to stay low, or it'd
be game over. More on this below. For starters, I'd like to review some of the
assumptions laid out by the CBO (whose projections are historically inaccurate -
usually comically so) to see how much risk and probability we have to the
downside. That is, both in terms of total debt, and interest payments on that debt.
First up - revenues and expenditures. The CBO says right now is as "bad as it's
gonna get" in terms of yearly deficits. From here we close the gap to "more
manageable" levels: (chart) This assumes low rates until 2012, and rate hikes
through 2015, that would bring the 3-month rate to 4.9%, and the 10-year rate to
5.9%: (chart) Source: Congressional Budget Office One glaring problem with top-
line estimates above is that the CBO is projecting 4.1% GDP growth annually from
2012 through 2014:
Given its assumptions about fiscal policy, CBO projects that real
(inflation adjusted) gross domestic product will increase by 2.8
percent between the fourth quarters of 2009 and 2010 and by 2.0
percent in 2011 (see Table 2-1). After 2011, the projected growth of
real GDP picks up, averaging 4.1 percent annually from 2012 through
2014 and closing the gap between GDP and its potential level (the
amount of production that corresponds to a high rate of use of labor
and capital resources) by the end of 2014 (see Figure 2-1).
Anyone want to take the other side of that trade?

And here's my favorite:
The modest growth in output projected for the next two years points
to sluggish growth in employment during the remainder of this year
and next. Consequently, the unemployment rate in CBO’s
projections declines slowly, falling to 9.3 percent at the end of 2010
and 8.8 percent at the end of 2011 (see Figure 2-2 on page 32). After
2011, growth in employment picks up along with growth in output,
and the unemployment rate declines more rapidly, reaching 5.1
percent at the end of 2014.
Be sure you view the projections below with rose-colored glasses - otherwise,
they may seem preposterous!
(chart) Source: Congressional Budget Office
Nevermind the legions of "underemployed" though - apparently even the CBO
didn't have the stomach to spin the future of this disastrous runaway train:
(chart) If we, for sake of argument, accept the above projections at face-value,
then we are looking at annual interest payments that will head towards $1 trillion
dollars by the end of the decade: (chart) Source: NPR.org Which is ugly, but not
"end of the world" ugly. The debt holds at approximately 67% of GDP - which is
not quite in "default red-zone" territory. Though you can see, a few tweaks to the
formula, and we're likely right there.
For a good expert perspective, NPR article quotes Kenneth Rogoff of This Time is
Different fame - who concurs with our questioning of these assumptions:
CBO's projections actually rest on fairly optimistic assumptions

about growth and interest. Under not particularly fanciful alternative
scenarios, annual debt payments could turn out to be more like $1.5
trillion, says Kenneth Rogoff, a Harvard University economist.
Rogoff, whose work on the history of financial crises is widely cited,

doesn't think the U.S. would face a crisis akin to the one currently
ravaging Greece and threatening to spread across Europe. Still, it
won't be pretty.
"In Greece, it's happening faster than you can blink," he says. "In the
U.S., it would be interest rates rising painfully and slowly over
several years. We would adjust, but that doesn't mean it's not going
to be painful and slow our growth."
Rates rising "painfully and slowly" is certainly a departure from the bond
vigilantes of the 1970's riding back into town to extract pain and misery from the
irresponsible spending Federal government. Then again, as mentioned above, it
probably must be a slower feast, otherwise the entire host would be killed if
interest rates spiked severely, which would signify GAME OVER In conclusion,
we can probably figure that government assumptions are too rosy - debt levels
are going to be greater than advertised. Which means that capping interest rates
is going to be extremely important to the Federal government.
Can they do it - or at least kick the can way down the road, like Japan's been able
to do (so far)?
Big hat tip to our correspondent Dr. Evil for contributing to this story! Disclosure:
No position’
The Fed is dead, maybe by 2012 Paul B. Farrell - MarketWatch ARROYO

GRANDE, Calif. (MarketWatch) — ‘OK, so Nassim Nicholas Taleb, the
“Black Swan” author, actually said: “The Fed won’t exist in 25 years.”
Warning: It’ll happen much sooner, fallout of the coming Second American
Revolution. It’s inevitable: Wall Street banks control the Federal Reserve
system , it’s their personal piggy bank. They’ve already done so much
damage, yet have more control than ever.
Tea-party activists in their own words
Tea-party activists talk to Russ Britt on what their movement represents.

Warning: That’s a set-up. They will eventually destroy capitalism, democracy, and
the dollar’s global reserve-currency status. They will self-destruct before 2035 …
maybe as early as 2012 … most likely by 2020. Last week we cheered the Tea
Party for starting the countdown to the Second American Revolution. Our
timeline is crucial to understanding the historic implications of Taleb’s prediction
that the Fed is dying, that it’s only a matter of time before a revolution triggers
class warfare forcing America to dump capitalism, eliminate our corrupt system
of lobbying, come up with a new workable form of government, and create a new
economy without a banking system ruled by Wall Street.
Read 'America on the brink of a Second Revolution.'
Let’s reexamine the timeline closely:
Stage 1: The Democrats just put the nail in their coffin confirming they’re wimps
when they refused to force the GOP to filibuster Bush tax cuts for billionaires.
Stage 2: In the elections the GOP takes over the House, expanding its strategic
war to destroy Obama with its policy of “complete gridlock” and “shutting down
government.”
Stage 3: Post-election Obama goes lame-duck, buried in subpoenas and vetoes.
Stage 4: In 2012, the GOP wins back the White House and Senate. Health care
returns to insurers. Free-market financial deregulation returns. Lobbyists
intensify their anarchy.
Stage 5: Before the end of the second term of the new GOP president,
Washington is totally corrupted by unlimited, anonymous donations from
billionaires and lobbyists. Wall Street’s Happy Conspiracy triggers the third
catastrophic meltdown of the 21st century that Robert Shiller of “Irrational
Exuberance” fame predicts, resulting in defaults of dollar-denominated debt and
the dollar’s demise as the world’s reserve currency.
Stage 6: The Second American Revolution explodes into a brutal full-scale class
war with the middle class leading a widespread rebellion against the out-of-touch,
out-of-control Happy Conspiracy sabotaging America from within.
Stage 7: The domestic class warfare is exaggerated as the Pentagon’s global
warnings play out: That by 2020 “an ancient pattern of desperate, all-out wars
over food, water, and energy supplies would emerge” worldwide and “warfare is
defining human life.”
In this rapidly unfolding scenario, the Fed cannot survive. Why? Not because the
Fed is at the center of America’s economic problems, beyond repair, a dying
institution. But because the Fed is a pawn of Wall Street’s Happy Conspiracy,
which is incapable of seeing the train wreck that it set up. This out-of-control,
conspiracy of greedy Wall Street bankers, corporate CEOs, corrupt politicians
and Forbes 400 billionaires will, in the near future, trigger the third catastrophic
meltdown of the 21st century, a collapse that paradoxically can transform
America into a new, stronger post-capitalist economy … but only after a
revolution and brutal class warfare. But few will talk about what’s coming.
Warning: Never trust the American Treasury Secretary
So who can you trust to tell us the truth? Taleb says it’s very simple. His “simple
metric” was made clear at a recent “Washington Ideas Forum” in a piece by
Atlantic editor Nicole Allan: Unfortunately most fail Taleb’s test. Most get it
wrong. Many lie, exaggerate, speak half-truths or, worse, say nothing. Here’s
Taleb’s “simple metric for judging whose economic opinions are worth his time:
‘Did someone predict the crisis before it happened” in the past? “If the answer is
no, I don’t want to hear what the person says. If the person saw the crisis coming
then I want to hear what they have to say” about future crises. Taleb target No. 1:
Treasury Secretary Tim Geithner, who spoke just before Taleb at the forum. Of
course, experience tells us you really can’t trust anyone in government. All
politicians fudge the numbers, cherry-pick data to suit their personal goals,
biases and political rhetoric. Remember Hank Paulson, Wall Street’s Trojan Horse
inside Washington? Earlier he had made over half a billion as Goldman’s CEO.
Back in July 2007 before the meltdown he bragged to Fortune that this is “the
strongest global economy I’ve seen in my business lifetime.” Never trust
anything “leaders” like him say. Never.’ [ I don’t believe anything any of them
says! ]
Jobs Growth Stalled and New Fed Polices Wont Help
Goldman Sachs Says U.S. Economy May Be `Fairly Bad’ Goldman Sachs Group
Inc. said the U.S. economy is likely to be “fairly bad” or “very bad” over the next
six to nine months.
Rally Stalls As Private Payrolls Dip
Market Warning: Danger, Will Robinson! Cam Hui ‘I have learned over the years
that my underlying investment outlook has a Value bias and that I suffer from the
curse of Value investors everywhere by being too early. Often, I have found
myself fighting the trend and underperforming as a result. One of the tools that I
have used to mitigate that effect is to look for inflection points in sentiment and
momentum.
First of all, I agree with John Hussman that the US economy appears to be
deteriorating (and he writes much more eloquently than I do). So far, the stock
market hasn't paid much attention to those risks and is in fact probing new highs
as I write this. However, the inflection point may be arriving. Bloomberg reports
that the Street is now cutting S&P 500 earnings estimates:
For the first time in more than a year analysts are cutting their
forecasts for Standard & Poor’s 500 Index earnings, jeopardizing
gains from the biggest September rally since World War II.
Estimates for S&P 500 companies’ combined 2011 profit fell as low
as $95.17 last month from an August high of $96.16 and posted the
first quarterly reduction since the three months ended June 2009,
according to more than 8,500 analyst forecasts tracked by
Bloomberg. The revision came as the benchmark gauge for U.S.
equities rose 8.8 percent last month, the largest September advance
since 1939.
Moreover, the number of new highs aren't expanding despite the strength in the
averages: (chart) Just as the bulls appear to be taking control, I am put in the
position of the robot in the old TV series Lost in Space as I warn: "Danger! Will
Robinson! Danger!" ‘
Private sector sheds 39,000 jobs in September Reuters | The August figure was
originally reported as a loss of 10,000.
Bernanke Finally Tells the Truth [in sugar-coated, euphemistic fashion] : The
United States is on the Brink of Financial Disaster EconomicPolicyJournal |
This is as close as you are ever going to see a central banker admit that his
country’s financial situation is so dire that it could breakup at any time.
Middle Class Slams Brakes on Spending Middle-class Americans made their

deepest spending cuts in more than two decades, slashing spending on
such discretionary items as restaurant meals and alcohol during the
recession.
Food Stamp Recipients at Record 41.8 Million Americans in July, U.S. Says The
number of Americans receiving food stamps rose to a record 41.8 million in
July as the jobless rate hovered near a 27-year high, the government said.
Is America Under Attack … Or Are the Barbarians Inside the Gates? Congress
and American economists are blaming China for America’s economic woes.
12 Ominous Signs For World Financial Markets Can anyone explain the very
strange behavior that we are seeing in world financial markets right now?
Corporate insiders are bailing out of the U.S. stock market at a very alarming
rate.
National / World
One Out Of Every Six U.S. Taxpayers Will Be Hit By A Tax Increase Averaging
$3,900 This Year And Most Of Them Don’t Even Realize It Would you be able
to sit down and write a check for an extra four thousand dollars this
upcoming April? So where in the world did this insane alternate tax system
come from anyway?
Alex Jones Talks About Huge Explosions, Fire Fighter Testimony: Video The Alex
Jones Channel | Alex Jones discusses video newly released by NIST
following a lawsuit that clearly shows firefighters discussing secondary
explosions which occurred just prior to the collapses on 9/11.
9/11 Firefighters Reveailing “Huge Explosions” In WTC Tops Google Trends Paul
Joseph Watson | Infowarriors have achieved another coup in the mission to
educate millions about 9/11 truth, with the search term “huge explosions”
soaring to the top of Google Trends.
Justices Signal Intent to Dismantle First Amendment Matt Ryan | The Supreme
Court, including Justices Anthony M. Kennedy and Stephen G. Breyer,
sound ready to rule in favor of this new limit.
Video: 9/11 Firefighters Reveal Huge Explosions Before Towers Collapsed Paul
Joseph Watson | Secondary explosions caused lobby of World Trade Center
to implode.
Globalist Mockingbird Media Attacks RT, Press TV as “Enemies” Kurt Nimmo |

Rockefeller Aspen Institute boss makes speech before the CIA’s Radio Free
Europe.
New Yorkers’ Income Falls for 1st Time in 70 Years The recession put a 3.1
percent dent in the personal incomes of New York state residents, who
endured their first full-year decline in more than 70 years, according to a
report released Tuesday.
IMF Calls for Huge New Round of Bank Bailouts This is amusing, given that it was
the last round of bailouts which caused the sovereign debt crisis in the first
place. Specifically, the Bank for International Settlements – often described
as a central bank for central banks (BIS) – slammed the failure of the Fed
and other central banks to force companies to write off bad debts years ago.
The War Addicts Sometimes it’s the little things in the big stories that catch your
eye. On Monday, theWashington Post ran the first of three pieces adapted
from Bob Woodward’s new book Obama’s Wars, a vivid account of the way
the U.S. high command boxed the Commander-in-Chief into the smallest of
Afghan corners.
Gold Rises to Record, Silver Extends Gains on Currency Declines Gold rose to a
record in London and New York, and silver extended gains to a 30-year high,
on speculation that government spending and low interest rates to revive
economic growth will weaken currencies and boost demand for precious
metals as an alternative asset.
Another Domino Falls: UK’s Leading Scientific Body Retreats on Climate Change
Patrick Henningsen | It’s the latest in a series of high-profile set-backs
suffered by global warming theorists.
Drudgereport: Private
Sector Hiring in Sept. Falls 39,000...
POLL: Working-class whites shun Dems...
Middle Class Slams Brakes on Spending...
Food Stamp Recipients at Record 41.8 Million Americans...
GOLDMAN SACHS: Economy 'fairly bad' or 'very bad' over next 6 – 9 months
(years) ...
New Yorkers' Income Falls for 1st Time in 70 Years...
Greek debt and deficit figures 'to shoot up'...
Ireland's debt ratings cut...
Judges rule without title, lenders can't foreclose (Washington Post) [ Rules of
law? I didn’t think they cared. That’s certainly the direct experience I’ve had with
the pervasively corrupt american legal / judicial system (along with the other two
October 5,
2010 (*see infra)

Dear Sir:


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) ******* (cell phone)
----------
-----

Status: Delivered
Track and Confirm
Detailed Results:
90052
----
Signed: ___________________________________
Albert L. Peia
Part 2: Woodward's 'Obama's Wars' Don't get 'locked into Vietnam,' Biden warns
(Washington Post) [ Yeah, when you have a lobotomized VP you tend not to
trust their opinion; but, I think they just cover their bases … you know, that
Kerryish both sides of all issues thing. In any event, wobama bought this
continued debacle and bears fault with the other zionist war mongers.
Previously (on Iraq and Afghanistan, infra): Obama: 'It is time to turn the
page' on Iraq war (Washington Post) [ Oh come on! How patronizing to
have wobama spew his b*** s*** which b.s. has become synonomous with
wobama; ‘to give Iraqis the chance to shape their future’… Iraq’s been
destroyed, covered in cancer-causing depleted uranium, america’s defacto
bankrupt, etc. If only teleprompters had a brain of their own. ] He says the
U.S. "has paid a huge price" to give Iraqis the chance to shape their future
-- a price that now includes more than 4,400 U.S. dead. ) On Thanksgiving
weekend in 2009, Vice President Biden counsels President Obama about
sending more troops to Afghanistan.
• Full coverage: 'Obama's Wars'

• Audio: Obama on length of the war
• Audio: Obama on attack possibility
• Audio: Obama on terrorism tactics
A subtler tack to fight Afghan corruption? (Washington Post) [ How about a not
so subtler tack to fight corruption starting right here in the u.s. of a. where
corruption and crime are pervasive and in fact, at the root of the Afghanistan
problems, from american reinvigorated heroin trade to bribery attendant thereto
to killing civilians, etc.. Defacto Bankrupt, Meaningfully Lawless, War Criminal
Nation america, the leader of nations … in crime:
Though having but 5% of the world’s population, america can boast 76% of the
world’s serial killers, followed by Europe with England/UK then Germany leading
the way for the eu [excerpt, 6 minute video, Serial Killers: Real Life Hannibal
Lechters http://www.albertpeia.com/realifeamericaserialkillers.mpg (as is
consistent with crime generally, see infra)]. Defacto bankrupt, fraudulent america
also spends more on offensive (defensive a misnomer / propaganda) military
spending than all the nations of the world combined, and by a large margin at
that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and
the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are
included in this evolved american trait of inherent criminality in the most
nefarious sense (
ury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm
) ]:
CRIME STATISTICS > TOTAL CRIMES (MOST RECENT) BY COUNTRY SHOWING

LATEST AVAILABLE DATA (america’s No. 1).
Rank Countries Amount

# 1 United States: 11,877,218
# 2 United Kingdom: 6,523,706
# 3 Germany: 6,507,394
… ]


Dennis Ross acts as a key channel between White House and Israeli government
(Washington Post) [ Oooooh! Key channel. Sounds impressive. So official
and authoritative! Time to impose a solution consistent with prior accords,
u.n. resolutions, international law, etc.. White House offers israel a carrot for
peace talks (Washington Post) [ Oh come on! This familiar dog and pony
show is getting old fast while america’s dying and america could in a day
precipitate a peace consistent with international law, prior u.s. resolutions
(i.e., 242, 338, etc.), (Oslo) accords, civilized behavior, etc., despite and in
contravention of israel’s militant intransigence, to stem the hemorrhaging of
american blood and treasure for israel’s sake. ] Middle East: Arsonists set
fire to mosque in West Bank town (Washington Post) [ Eh, … what the heck
… they’re loving america-aligned terrorists … and they’re jewish … the laws
don’t apply to them … Yeah, that’s about it ! … In a nutshell … and perfect
timing to sabotage the ‘peace talks’. ]
Middle East: Arsonists set fire to mosque in West Bank town (Washington Post) [
Eh, … what the heck … they’re loving america-aligned terrorists … and
they’re jewish … the laws don’t apply to them … Yeah, that’s about it ! … In a
nutshell … and perfect timing to sabotage the ‘peace talks’. ]
The rising economic inequality (Washington Post) [ I’m sorry to say … you ain’t
seen nottin’ yet … predictions of revolution in america as well as abroad are
rife! Drudgereport: America on 'brink of a Second Revolution'... UN
warns of global unrest over unemployment... Super-rich investors buy
gold by ton... GALLUP RACE DIVIDE: OBAMA APPROVAL 91% WITH
BLACKS, 36% WITH WHITES AND EVERYBODY ELSE ... World Economy
'Decoupling From USA'... IMF admits West stuck in near-depression... ]
The Republican's "A Pledge to America" glosses over some inconvenient
facts about income disparity.
Political Economy: More on the output gap (Washington Post) [ Great point and
charts by Mr. Irwin and I would just add that there’s no mystery here, and
that the structural shift, lamentably, is irrevocable and quite permanent, and
unforgiveably, quite deliberate by those american geniuses, so-called titans
of industry, politicians, strategists at the cia, nsa, etc.. See infra: ]
Pelosi, other Dems call for federal foreclosure probe (Washington Post) [ Riiiiight!
Sounds like a plan! Great soundbite, pre-election.‘ Guess these dudes don’t
have the juice (as in cash, lobbies, etc.) that the wall street frauds had in not
only evading probes or prosecution, by request or otherwise, but also in
getting even valuation rules changed to ‘mark to anything’ so that the
worthless paper, the rotten fruit of their frauds would remain sub rosa and
off the radar, so to speak! ] Group of Democrats seeks federal probe, citing
irregularities in processing foreclosures of thousands of homes at some
U.S. mortgage firms. Stocks surge to highest level in nearly five months
(Washington Post) [ Come on! The service sector? That non-productive
morass of paper pushin’, commissionin’, make-work sector, in an election
year no less, the impetus for a market rally along with Japan’s zero interest
rate prep for yet another lost decade … I don’t think so! What total b*** s***.
This is a great opportunity to sell / take profits since, beyond the ‘anything
goes’ pre-election spin, market-frothing, etc., there’s much worse to come.
This is so owing to the irrevocable structural shift (discussed many times on
this site) that has occurred in the most negative sense for the defacto
bankrupt u.s.. The ol’ days are done! It’s a whole new ballgame. The
following is a pragmatic summary explanation of the short-term that is not,
nor ever has been sustainable (the reality follows this astute summary) since
the money for the churn-and-earn worth less paper movement has to come
from some real place which is downside all the way for solid and real
economic growth (don’t forget; the so-called minds that brought on this
continued debacle for which frauds they’ve not been prosecuted are, with
the help of legislated mark to anything accounting rule changes and churn-
and-earn high frequency programmed trading, now flush with the proceeds
of their multi-trillion dollar fraud / scam. Indeed, they’re shootin’ for 500
dollar loaves of bread and 1 dollar stocks selling for like amounts):
Political Economy: More on the output gap (Washington Post) [ Great point and
charts by Mr. Irwin and I would just add that there’s no mystery here, and
that the structural shift, lamentably, is irrevocable and quite permanent, and
unforgiveably, quite deliberate by those american geniuses, so-called titans
of industry, politicians, strategists at the cia, nsa, etc.. See infra: ]
Pelosi, other Dems call for federal foreclosure probe (Washington Post) [ Riiiiight!
Sounds like a plan! Great soundbite, pre-election.‘ Guess these dudes don’t
have the juice (as in cash, lobbies, etc.) that the wall street frauds had in not
only evading probes or prosecution, by request or otherwise, but also in
getting even valuation rules changed to ‘mark to anything’ so that the
worthless paper, the rotten fruit of their frauds would remain sub rosa and
off the radar, so to speak! ] Group of Democrats seeks federal probe, citing
irregularities in processing foreclosures of thousands of homes at some
U.S. mortgage firms. Stocks surge to highest level in nearly five months
(Washington Post) [ Come on! The service sector? That non-productive
morass of paper pushin’, commissionin’, make-work sector, in an election
year no less, the impetus for a market rally along with Japan’s zero interest
rate prep for yet another lost decade … I don’t think so! What total b*** s***.
This is a great opportunity to sell / take profits since, beyond the ‘anything
goes’ pre-election spin, market-frothing, etc., there’s much worse to come.
This is so owing to the irrevocable structural shift (discussed many times on
this site) that has occurred in the most negative sense for the defacto
bankrupt u.s.. The ol’ days are done! It’s a whole new ballgame. The
following is a pragmatic summary explanation of the short-term that is not,
nor ever has been sustainable (the reality follows this astute summary) since
the money for the churn-and-earn worth less paper movement has to come
from some real place which is downside all the way for solid and real
economic growth (don’t forget; the so-called minds that brought on this
continued debacle for which frauds they’ve not been prosecuted are, with
the help of legislated mark to anything accounting rule changes and churn-
and-earn high frequency programmed trading, now flush with the proceeds
of their multi-trillion dollar fraud / scam. Indeed, they’re shootin’ for 500
dollar loaves of bread and 1 dollar stocks selling for like amounts):
Good Economic News Is OK, Bad News Is Better for the Market By Adam Sharp
‘Markets have reached a point where fundamentals don't matter much. These
days, when nasty economic data comes out, stocks are more likely to rise than
they are to fall. Why? Because ugly data means the Fed is likely to "ease" further
— i.e. pump more cash into the economy. That money inevitably finds its way into
the markets. The logic is perverse; but to be a successful investor today, you
need to focus more on what the Fed is up to than anything fundamental. Morgan
Stanley's Jim Caron summed it up nicely in a recent note to clients:
Investment decisions across many asset classes today are
tantamount to an educated guess on what the Fed decides to do
regarding QE. In the near-term this trumps fundamentals, valuations
and almost everything else.
If you believe in any sort of free market, it's all very frustrating to watch. This
market is dependent on a few bank-biased individuals — not ideal, to say the
least. But there is a bright spot in this mess: precious metals, of course. Gold,
silver, palladium, and platinum have all benefited from the Fed's quantitative
easing (QE) experiment. The rationale for owning these assets is simple: If you
believe the Fed will print more money, you should buy physical PMs and
miners.Major inflation doesn't even need to occur for gold to rise. As long as the
Feds keep eroding the dollar's purchasing power and running huge deficits, gold
and other metals should perform well. Back in December of 2009 — in a piece
called "Why I'm Buying the Gold Dips" — I wrote, "There's simply no way the Fed
can stop propping up the market." Gold was trading around $1065 then, and it's
over $1300 today. The long-PM strategy has worked for years, and I don't see that
changing in the near future. Budget woes and financial uncertainty aren't going
away any time soon, so precious metals should continue to outperform.
Especially now that QE 2.0 is beginning to be accepted as inevitable. Analysts are
finally realizing that deflation will not be allowed to occur. The Fed printing
presses are just warming up... They will continue to devalue the dollar, goose the
stock market, and monetize America's debt for as long as they can get away with
it. Like I said, it's not ideal. But it's the hand we've been dealt. Precious metals
remain a great way to play it.’
Krugman: We’re Going To Have To Default On Our Debt One Way Or Another
Some dour commentary from Paul Krugman this morning on the
implications of our monster debt. Economists Herald New Great Depression
The world is currently experiencing the modern day equivalent of the Great
Depression, according to a prominent economist who has added his voice to
scores of others now forecasting ongoing economic doom on a scale not
seen since the 1930s.) , and my position and that of demographer Dent
( Prechter and many others are also in this camp although I believe he does
not factor in sufficiently the debasement of the u.s. currency / dollar in
arriving at his numbers which do however, at 1,000 on the DOW reflect real,
as opposed to inflated values of 3-4,000 owing to the ever more worthless
Weimar dollars which provides ‘spin material’ for the wall street frauds but is
really quite ominous going forward, and very detrimental in real economic
terms.) [This is a global depression. This is a secular bear market in a global
depression. The past up move was a manipulated bull (s***) cycle in a
preceded the prior crashes with great regularity that the wall street frauds
and insiders commission and sell into. This is a typical wall street churn and
earn pass the hot potato scam / fraud as in prior crashes’. This national
disgorgement imposed. [ The reason for the necessity of prosecution is
steeped in the circumstances surrounding and mindset of what one would
deem ‘antisocial personalities’ (disorders) ( I prefer the prior descriptor of
such as psychopathic; the euphemistic ‘sociopathic’ was ‘far too
understanding’ in my view of the social / environmental factors allegedly
giving rise to such negative / destructive behaviors. I don’t buy it.)
Specifically, accepted studies / findings have concluded that the essential
defect in those with antisocial (psychopathic) personality disorders is an
inability to respond normally to fear-inducing stimuli, leading in turn to an
inability to inhibit responses that should, but, as with wall street, have not
resulted in punishment. Thus, while I think most on wall street have proven
themselves criminally insane (for the money, ie., Stewart, ‘Den of Thieves’ /
‘Liar’s Poker’, the most recent financial debacle / crisis, which continues to
this day); at the least, owing to a lack of fear of prosecution / punishment,
they have become defacto sociopathic / psychopathic. ] Krugman: It's All
Downhill From Here Cullen Roche Love him or hate him Paul Krugman has
been awfully right with regards to the macro picture in the last few years.
He’s one of the rare economists who had the foresight to see the housing
Krugman recently caused a stir when he said the US economy was headed
for the third depression. Here Are 13 Signs That We’re Actually In A
Depression Right Now Gregory White | David Rosenberg has outlined, in his
latest letter, the 13 reasons with this so-called recovery is actually a
depression… David Rosenberg has outlined, in his latest letter, the 13
reasons with this so-called recovery is actually a depression.Rosenberg
sums it up like this:

sustenance.

and 2012). ]
Fed, ECB throwing world into chaos: Stiglitz (Reuters) By Walter Brandimarte
NEW YORK (Reuters) – Ultra-loose monetary policies by the Federal Reserve and
the European Central Bank are throwing the world into "chaos" rather than
helping the global economic recovery, Nobel Prize-winning economist Joseph
Stiglitz said on Tuesday.A "flood of liquidity" from the Fed and the ECB is
bringing instability to foreign-exchange markets, forcing countries such as Japan
and Brazil to defend its exporters, Stiglitz told reporters in a conference at
Columbia University."The irony is that the Fed is creating all this liquidity with the
hope that it will revive the American economy," Stiglitz said. "It's doing nothing
for the American economy, but it's causing chaos over the rest of the world. It's a
very strange policy that they are pursuing."The U.S. dollar has weakened about
6.5 percent against a basket of major currencies since the beginning of
September as prospects for further monetary easing by the Fed have led
investors to seek higher returns elsewhere.That flow of dollars caused currencies
to appreciate in many emerging market countries such as Brazil, which offers
strong growth prospects. The Japanese yen has also hit record highs against the
dollar on expectation of additional greenback weakness.Recent actions by those
countries to curb the strength of their currency were "necessary," Stiglitz
added."It's natural in that context for them to say -- we can't just let our exchange
rates appreciate and destroy our exports," he said.On Monday, Brazil doubled a
tax on foreign investment into local government bonds, while Japan lowered the
target for its benchmark interest rate to a range between zero and 0.1 percent.The
Bank of Japan also pledged to buy 5 trillion yen ($60 billion) worth of assets, in a
strategy similar to the one adopted by the Fed to pump funds into the
economy.But additional monetary stimulus will "clearly" not solve the problems
caused by lack of global aggregate demand, Stiglitz said."Lowering the interest
rates may help a little bit, but that's much too weak to address the problems
facing the United States and Europe," Stiglitz said. "We need fiscal
stimulus."(Reporting by Walter Brandimarte; Editing by Jan Paschal)
Bernanke Tells the Truth: The United States is on the Brink of Financial
Disaster EconomicPolicyJournal | This is as close as you are ever going to see
a central banker admit that his country’s financial situation is so dire that it
could breakup at any time.
Gold hits record above $1,340 as dollar slides Reuters | Gold jumped nearly 2
percent on Tuesday, its biggest one-day rise since May, resuming its march
to record highs as the dollar tumbled and currency market volatility ignited
safe-haven buying.
Call for new global currencies deal FT | The world’s leading countries should
agree a new currency pact to help rebalance the global economy.
Paul Farrell Explains Why The Fed-Wall Street Complex Will Self Destruct By 2012
They will eventually destroy capitalism, democracy, and the dollar’s global
reserve-currency status. They will self-destruct before 2035 … maybe as
early as 2012 … most likely by 2020.
Legendary Investor: “It’s A Given” That Gold Will Exceed $2000 Billionaire
financier Jim Rogers tells CNBC that the Federal Reserve’s continuing
decimation of the economy means that it’s a dead cert that gold will
continue to surge, irrespective of any possible temporary recovery.
What China Is Thinking We all have a sense of what the Chinese are thinking
about the rest of the world—but we don’t really know. Of course, they tell us
what they’re thinking—but that’s as polite and meaningless as when you ask
your dinner guests how’s the food: They might look green around the gills,
but they’ll invariably say, “Why, it’s wonderful—thank you!”
Super-rich investors buy gold by ton The world’s wealthiest people have
responded to economic worries by buying gold by the bar — and sometimes
by the ton — and by moving assets out of the financial system, bankers
catering to the very rich said on Monday.
Gold Goes Berserk, As Japan Unveils The Mother Of All Quantitative Easing
Schemes The Bank of Japan just put Bernanke to shame with its latest
announcement regarding quantitative easing.
Is A 90 Day “Mortgage Meltdown” Foreclosure Moratorium Imminent As The

RoboSigning Scandal Goes Mainstream? The Massive Mortgage Mess as we
affectionately call it seems to be getting new names with each passing day –
the latest one is, quite appropriately, RoboSigning Scandal (funny how after
the stock market, “robotic” technology will soon becoming equated with the
biggest mortgage scam in history).
National / World
Sharron Angle Takes Lead Over Harry Reid In Latest Poll In the latest Fox News
battleground state poll of likely voters, Angle drew 49 percent to Reid’s 46
percent. As voters make up their mind with four weeks to go until Election
Day, Angle seems to have the edge.
Gov’t-Run Health Care Death Sentence in AZ: No More Liver Transplants for Hep-
C Patients Arizona’s Medicaid agency will no longer cover some non-
experimental organ transplants for its adult members, including liver
transplants for patients with Hepatitis C, a move blasted as “a death
sentence” by one patient advocacy group.
Government Exploits CIA Patsy to Hype Police State “Surge” Exercise On Amtrak
Routes As the mid-term elections rapidly approach and Barry Obama’s
popularity numbers continue down the tubes, the government is pulling out
all the stops to hype the possibility of a “Mumbai-style” terror attack on
Europe and the homeland.
The Health Ranger: Big Pharma’s Secret Agenda Exposed Prison Planet.tv | The
Health Ranger Mike Adams gives a special presentation Big Pharma’s
agenda to make sure you die broke.
Government Exploits CIA Patsy to Hype Police State “Surge” Exercise On Amtrak
Routes Kurt Nimmo | Key player in hyped threat is linked to CIA, German and
Saudi intelligence, and the shadowy Safari Club.
iPhone Game Slaughters Humans To Defend “Mother Earth” Paul Joseph Watson |
A popular new game for the iPhone depicts a giant worm slaughtering
humans and knocking airplanes out of the sky to save “mother earth” in
another shocking example of how the eco-fascists that have taken over the
environmental movement are obsessed with mass genocide and gory death.
Glenn Beck repackages Alex Jones’ ideas Russia Today | Jones explained that
Glenn Beck uses his ideas and repackages them in a way that pulls away
from true libertarianism and the constitution.
Government collusion in human medical experiments no longer just a conspiracy

theory Mike Adams | It is now an admitted fact that the U.S. government
conspired with the pharmaceutical industry to conduct medical experiments
on innocent victims.

Manhattan Office Vacancy Rate Hits Six-Year High...
Super-rich investors buy gold by ton... Per ounce price tops $1,340...
Mondale: Obama's teleprompters are 'idiot boards'... Video...
GALLUP RACE DIVIDE: OBAMA APPROVAL 91% WITH BLACKS, 36% WITH
WHITES AND EVERYBODY ELSE ...
Christine O'Donnell Ad: 'I Am Not A Witch' … [ just a crazy b**ch ] ...
World Economy 'Decoupling From USA'...
IMF admits West stuck in near-depression...
Anthropologists adopt a more favorable view of Neanderthals (Washington Post)
[ Well, I’m a bit surprised and somewhat disappointed that with a little more
effort, rather than rely upon inference, they could have taken a trip to the
new york / new jersey / connecticut metropolitan area (etc.) and observed
directly these lower italian modern-day archaic humans! Then there are the
other modern day archaics / ape-like creatures that warrant greater
scrutiny. ]
Afghanistan: Afghan ally vital to U.S. despite graft allegations (Washington Post)
[ Wow! As if we didn’t see that rationalization coming in light of the fact that
they learned their pervasively corrupt american lessons well; even beyond
america’s reinvigoration of the heroin trade which the Taliban had all but
eradicated. ]
Revisiting foreclosure cases may clog market (Washington Post) [ And just when
we though things couldn’t get any worse or more economically uncertain as
per no-recession-helicopter ben shalom or b.s. for short, bernanke. ]Judges
are beginning to re-examine old cases and dismiss pending ones. The trend
could lead to overturned evictions, and it could stall foreclosure cases for
years and scare away buyers of millions of seized properties clogging the
real estate market.
Bernanke warns of high deficits (Washington Post) [ One of those ‘daaah

moments’! Prescient admonitions from that economic seer, no-recession
ben … ‘beware the now insurmountable debt!’ Right ben … thanks for the
timely ‘heads up’ , ben … What a joker! Ah, yes, again! ‘Ahead of the curve’,
greenshoots, no-recession and all from ( no-recession-helicopter) Ben (b.s.
for b*** s*** shalom) Bernanke (oj the juice man) fed courtesy of my favorite
‘glass-perpetually-half-full (though empty)’ wall street shill, Mr. Irwin. ] The
nation's economic future would be endangered if the government does not
rein in budget deficits in the years ahead, Federal Reserve Chairman Ben S.
Bernanke says, and Congress should consider new budgeting rules to try to
make that happen.
World leaders at impasse over proposals for financial reform (Washington Post)
[ Impasse? How ‘bout a realization that they, like lemmings, have followed
defacto bankrupt america to the precipice and are hanging on by a thread! I
mean, what reform … they’ve covered up the debacle as best they can
according to the fraudulent american model including no prosecution of the
perps and mark to anything valuation of still many trillions in worthless
paper, etc.] International Monetary Fund and World Bank officials worry
about the loss of momentum, and analysts warn that national interests could
undermine further reform.
The Calm Before the Stock Market Storm Wall Street Sector Selector ‘ … What It
All Means In three words, “more pain ahead.” We unfortunately have a long road
ahead as a country and as investors and try as they might, the best the powers
that be can hope to do is kick the can down the road, as the old saying goes.
Herbert Hoover, “the father” of the Great Depression learned this lesson and our
current leaders should listen to his voice of experience: “Economic depression
cannot be cured by legislative action or executive pronouncement. Economic
wounds must be healed by the action of the cells of the economic body – the
producers and consumers themselves.” We will heal but it’s going to take some
time and much more pain. Over the last few weeks we’ve been in the “calm
before the storm.” The storm is about to hit and will either take us to higher
ground and safety or into a vortex of volatility and asset destruction. Wall Street
Sector Selector remains in the “red flag” mode, expecting stormy weather and
lower prices ahead. …’
The Claim That This Was the Best September Since 1939 Is False Short ‘… Here
are some questions you might ask if you want to thoroughly understand what has
been repeated on TV and in the print media during the last couple of days that is
absolutely false and purposely designed to make you feel bullish. Why is anyone
claiming September gained more than any other September since 1939,
especially since that claim is not only technically false and very misleading, but
constitutes disinformation when they learn the actual facts? …’
Nouriel Roubinis Talk at Googles Zeitgeistminds Harrison ‘Chrystia Freedland

introduces Dr. Roubini, reminding him that he is still known as Dr. Doom. She
quips he should wear the name with pride because he was "one of the very few
economists who was actually right about the crisis." This reminds me of Nassim
Taleb who said recently that we shouldn’t listen to anything Tim Geithner and
Paul Krugman have to say since they were blind-sided by the crisis. PBS’ Paul
Solman once called Taleb and Roubini collectively "The Bon Vivants of Doom
And Gloom."I kind of like that one better. P.S. Irving Fisher never called the Great
Crash and Depression. In fact, he is famous for talking about a "permanently high
plateau" just before things fell apart. But Fisher still made a positive contribution
to our understanding of the situation with his Debt-Deflation Theory of Great
Depressions. Just sayin’. In any event, here is Nouriel Roubini’s talk. If you’ve
heard his economic forecasts before, there is nothing new here. But the clip runs
just over 20 minutes and gives you a more expansive understanding of why he
sees the global economy as still in a world of hurt …’
Dick Bové: Run For Your Lives ‘Absolutely certain usa will have another
economic meltdown requiring another TARP-like solution (bailout)’
NY Times: Expect More Bailouts THE government is pulling a sheet over TARP,
the Troubled Asset Relief Program created during the panic of 2008 to bail
out the nation’s financial institutions. With the program’s expiration on
Sunday, we can expect to hear lots of claims from the folks at the Treasury
that it was a great success.
Rampant Inflation In 2011? The Monetary Base Is Exploding, Commodity Prices

Are Skyrocketing And The Fed Wants To Print Lots More Money Are you
ready for rampant inflation? Well, unfortunately it looks like it might be
headed our way. The U.S. monetary base has absolutely exploded over the
last couple of years, and all that money is starting to filter through into the
hands of consumers.
Volcker: “The Financial System is Broken” and “the Mortgage Market Has
Become a Subsidiary of the U.S. Government” Paul Volcker spoke at the
Chicago Federal Reserve Bank on September 23rd, as part of a symposium
co-sponsored by the IMF.
Today’s Gold Myth “Its Topped, There Is No Inflation, Get Out Now While You Still
Can” I am starting to hear this mantra parroted through ‘internet rumor’ that
because there is no inflation, gold has hit its high, and you’re better off
selling now while you still can, and certainly not buying any.
Wall Street Sees World Economy Decoupling From U.S. Bloomberg | Underpinning
their analysis is the view that international reliance on U.S. trade has diminished and is
too small to spread the lingering effects of America’s housing bust.
FDIC: Failed Banks Jun 22, 2010 ... For banks that have failed since October 1,
2000, search for the latest dividend information. Historical Statistics on
Banking - Failures ... http://www.fdic.gov/bank/individual/failed 2010 Bank
Failures Outpace 2009 - Kym McNicholas - Kym's Faces Of ... Oct 1, 2010 ...
After Hours: October 1, 2010 Microsoft sues Motorola * Microsoft, ... And
the list of bank failures this year has grown to 128, ...
blogs.forbes.com/kymmcnicholas/2010/.../2010-bank-failures-outpace-2009/
Excuse Me If I Come On Too Strong Larry Edelson | Gold’s continued strong price
rise is a resounding warning shot.
Rampant Inflation In 2011? The Economic Collapse | The U.S. monetary base has
absolutely exploded over the last couple of years.
Wall Street Sees World Economy Decoupling From U.S. Bloomberg | Underpinning
their analysis is the view that international reliance on U.S. trade has
diminished and is too small to spread the lingering effects of America’s
housing bust.
Volcker: “The Financial System is Broken” and “the Mortgage Market Has
Become a Subsidiary of the U.S. Government” Washington’s Blog | Paul
Volcker spoke at the Chicago Federal Reserve Bank on September 23rd, as
part of a symposium co-sponsored by the IMF.
Waiting for the Next Financial Meltdown Infowars.com | “Inside Job” director
Charles Ferguson takes an in-depth look at how banksters brought the
nation to the brink of a collapse.
Who Owns The Media? The 6 Monolithic Corporations That Control Almost
Everything We Watch, Hear And Read Back in 1983, approximately 50
corporations controlled the vast majority of all news media in the United
States. Today, ownership of the news media has been concentrated in the
hands of just six incredibly powerful media corporations. These corporate
behemoths control most of what we watch, hear and read every single day.
Guatemalan STD medical experiments were just one crime in a long history of
medical-government collusion to use humans as guinea pigs It has now
been widely revealed that the United States conducted medical experiments
on prisoners and mental health patients in Guatemala in the 1940’s.
Bernanke Knew Back in 1988 that Quantitative Easing Doesn’t Work Bernanke
knew back in 1988 that quantitative easing doesn’t work. Yet, in recent
years, he has been one of the biggest proponents of the notion that if all else
fails to revive economic growth and avert deflation, QE will work.
IMF admits that the West is stuck in depression If you strip away the political
correctness, Chapter Three of the IMF’s World Economic Outlook more or
less condemns Southern Europe to death by slow suffocation and leaves
little doubt that fiscal tightening will trap North Europe, Britain and America
in slump for a long time.
National / World
Britain held secret war talks with U.S. general 11 months before Iraq invasion
America’s most senior general flew into Britain for top secret talks on the
invasion of Iraq 11 months before the attack on Saddam Hussein’s regime.
Fresh Attacks: More NATO oil trucks blaze in Pakistan Militants have set fire to at
least 20 NATO oil tankers in northern Pakistan, killing at least 3 people in the
process. Authorities say about a dozen attackers stormed the depot where
the trucks were preparing for departure. This is the second such attack in
the past few days. It comes amid strained relations between NATO and
Pakistan, stemming from a cross-border raid that left 3 Pakistani soldiers
dead.
‘Terror Hysteria’ and ‘October Surprise Terror’ Dominate Google Trends Matt
Ryan | On today’s Alex Jones Show, Alex called for everyone to Google two
phrases, “Terror Hysteria” and “October Surprise Terror” which quickly
dominated the top two spots on Google’s powerful trend tracking system,
Google Trends.
DOJ Urges Citizens to Report “Extremists” Handing Out Literature Kurt Nimmo | If
you posted an Obama Joker poster or Tea Party literature on a public
bulletin board, the Justice Department is warning you are a possible
terrorist.
Google Trend Searches to Expose an October Surprise False Flag Attack

Infowars.com | It is imperative that we expose a possible October surprise
designed to cast a pall over the coming mid-term election and the success
of forces arrayed against the establishment.
October Surprise: Terror Hysteria Recycled In Election Ploy Paul Joseph Watson |
Cynical stunt to frighten angry Americans into placing their trust back in
government
The Government Has An Appetite For Your Blood Paul Joseph Watson | State finds
yet another way to jab Americans with needles in pursuit of monolithic DNA
database.
October Surprise: Terror Hysteria Recycled In Election Ploy The establishment

media is giving full court press to announcements from US and European
authorities that airport lobbies are being targeted for terror attacks in a
recycled version of the laughable 2007 incident in which two mental
deficients set fire to a jeep outside Glasgow airport, a non-event that
authorities hyped beyond all recognition amidst a similar wave of hysteria to
that which we’re witnessing now.
US Government, Corporate Media Hatch “Irritating” And Unfounded Terror Plot

Despite frothing headlines about European airports and train stations about
to be attacked by machine gun wielding muslim terrorists, British
intelligence officials have admitted that there is no evidence whatsoever to
suggest that a significant terror plot is imminent.
Google CEO: “We Know Where You Are. We Know Where You’ve Been. We Can
More Or Less Know What You’re Thinking About.” Google CEO Eric Schmidt
really has a knack for expressing relatively benign ideas in a way that makes
him and his company look incredibly creepy.
Mike Adams In-Studio: FDA, The Most Dangerous Agency in Government

Infowars.com | Adams talks with Alex about Big Pharma and the danger
posed by the FDA to the American people.
Army embeds active-duty PSYOPS soldiers at local TV stations John Cook | The
U.S. Army has used local television stations in the U.S. as training posts for
some of its psychological-operations personnel.
Feds deploy mobile X-ray fleet to radiate, scan Americans Ethan A. Huff | U.S. law
enforcement officials have already deployed many of these machines in
cities across the country, including in a recent operation near Atlanta.
US Government’s Human Experimentation Apology: They’re Only Sorry They

Were Caught Steve Watson | Countless examples prove atrocious
experiments are routine.
Absurd Terror Threat Arises in Mid-term Home Stretch Kurt Nimmo | Intelligence
agencies claim dead CIA asset Osama bin Laden will pull of a Mumbai-style
attack.
Local news stations training psychological ops soldiers: report Two CBS
affiliates have been helping train US Army psychological operations
soldiers, says an investigative report at Yahoo! News.
Feds deploy mobile X-ray fleet to radiate, scan Americans The encroaching Big
Brother nightmare has escalated even further with a recent announcement
that the U.S. government has purchased mobile X-ray vans to scan people
and vehicles at sporting events, road stops and even at random.
CIA backed by drones in Pakistan The CIA is using an arsenal of armed drones
and other equipment provided by the U.S. military to secretly escalate its
operations in Pakistan by striking targets beyond the reach of American
forces based in Afghanistan, U.S. officials said.
U.S. Issues Terrorism Alert for Travel to Europe The State Department issued an
alert on Sunday urging Americans traveling to Europe to be vigilant about
possible terrorist attacks in a statement that specifically cites the potential
involvement of Al Qaida.
Al Gore Confronted in Tampa about Global Warming Again!! Al Gore shows up

for Kendrick Meek Rally in Tampa. Starts talking about the environment. He
had to be confronted again about the Global Warming Hoax.
US quietly testing ‘scary new war in Pakistan’ Since President Barack Obama
took office, the US has increased the number of airstrikes in Pakistan by
unmanned aerial vehicles.
Kissinger: A free war criminal Hillary Clinton has been very vocal in her criticism
of former Secretary of State Henry Kissinger’s foreign policies. Kissinger,
who served under President Richard Nixon, was introduced yesterday by
Clinton at a conference on Indo-China hosted by the State Department. Will
Secretary Clinton learn from the mistakes made by Kissinger from the
Vietnam War?
U.S. struggles to counter Taliban's propaganda (Washington Post)

[ Propaganda? Really? Come on! The Taliban doesn’t need propaganda, the
facts will do just fine! ]Militant group grows more deft at portraying the
West as on the brink of defeat, shoring up support on home front for an
increasingly unpopular war. [Photos show US soldiers posing with Afghan
corpses – Nothing like those publicity photos for winning ‘hearts and minds’
in Afghanistan and throughout the world, and just before committing suicide
themselves, and lending creedence to the proscription against illegal drug
use as causative of strange, savage, illegal, bizarre, etc., behavior …
consistent with that notoriously infamous query, ‘What were they smoking?’.
How pathetic war-mongering, defacto bankrupt america has become! (AP)
Israel: Defining 'Jewish state': For many, term has different meanings
(Washington Post) [ Well ain’t that the truth! As per Forrestal’s warning
(infra), it meant new york, pennsylvania, and California … for the greedy
zionist israelis it means anything they want it to mean, borders, laws, u.n.
resolutions, civilized behavior, etc., be damned! ]
Bank of America puts hold on foreclosures (Washington Post) [ Connecticut

halts all foreclosures (Washington Post) [ Geeh! If only Connecticut was as
diligent about clear law applied to clear facts, including adnerence to Orders
of the Federal Court’s Chief Judge in said district and the enforcement of
judgments entered in said district, they’d undoubtedly have a more vibrant
and more certain economy, see infra … ] In radical action on document
irregularities, the state halts all foreclosures by all banks for 60 days Poll:
Were Connecticut's actions too drastic? ] The nation's largest bank
becomes the latest lender to put foreclosures on hold in 23 states because
of concerns that court documents it submitted were improperly prepared.
Connecticut, California join probe of Ally (Washington Post) [I’d be much more
impressed if they initiated a probe of more readily discernible criminal
offenses in violation of the RICO Act http://albertpeia.com Frauds/Liars
(sic-lawyers)Covering Up for Other Frauds/Liars (sic-lawyers). In Productive
Societies as China, Japan, etc., Fraudulent Liars (sic-lawyers) and the
Fraudulent u.s. System They're a Part of Are Unheard Of/Non-existent. List of
Files Regarding Filed Attorney Grievance Against Fraud coan et als Or Here
For A Clearer View Of Filed Grievance Complaint, Response, Exhibits, and
Related RICO Filings Note the Committee of Frauds/Liars (sic-lawyers).
Included are DOJ Rep., State Court Rep., State Atty. General Office Rep., and
even a Vegetable Garden yale law prof who probably never practiced law in
his life. How Pathetic! http://albertpeia.com/fbiofficela91310 ] Justice: FBI
improperly opened probes (Washington Post) [ I just hope they’re as
zealous (in probing readily discernible crime) with regard to my RICO matters
and the corruption in the (judicial / legal) process since, in the final analysis, it
will have been the corruption within that will have brought the nation down
irrevocably and totally ] .
9-13-
10

Dear Sir:
I enclose herewith 3 copies of the within DVD rom autorun disk (which will open
in your computer’s browser) as per your office’s request as made this day (the
disk and contents have been scanned by Avast, McAfee, and Norton which I’ve
installed on my computer to prevent viral attacks / infection and are without
threat). I also include a copy of the DVD as filed with the subject court as
referenced therein (which files are also included on the aforesaid 3 disks in a
separate folder named ‘112208opocoan’)…
The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which
provides a civil remedy, including treble damages and attorney fees, as an
incentive for private prosecution of said claims probably owing to the fact that
the USDOJ seems somewhat overwhelmed and in need of such assistance given
the seriousness and prevalence of said violations of law which have a corrupting
influence on the process, and which corruption is pervasive). A grievance
complaint against Coan was also filed concurrently with the subject action and
held in abeyance pending resolution of the action which was illegally dismissed
without any supporting law and in contravention of the Order of The Honorable
Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the
horizontal rule are the referenced documents as filed. (Owing to the damage to
the financial interests of both the U.S. and the District of Congresswoman
Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False
Claims Act probably would apply and I would absent resolution seek to refer the
within to a firm with expertise in that area of the law with which I am not familiar).
The document in 5 pages under penalty of perjury I was asked to forward to the
FBI office in New Haven is probably the best and most concise summary of the
case RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages) [
http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf (
http://albertpeia.com/fbiofficela91310 ) ].
The correspondence I received from the Congresswoman by way of email
attachment (apparent but typical problem with my mail) along with my response
thereto is included on the 3 disks as fbicorrespondencereyes.htm . With
regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call
to the LA office and I was referred to the Long Beach, CA office where I
personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary
documents of the money laundering which he confirmed as indicative of same
(he was transferred from said office within approximately a month of said meeting
and his location was not disclosed to me upon inquiry). The matter was assigned
to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade
until he abruptly retired (our last conversation prior to his retirement related to
the case and parenthetically, Rudy Giuliani whose father I stated had been an
enforcer for the mob to which he registered disbelief and requested I prove it,
which I did – he served 12 years in prison, aggravated assault/manslaughter? –
and no, there is no Chinese wall of separation – Andrew Maloney’s the one that
prosecuted gotti).
In contradistinction to the statement in said correspondence, there is a plethora

of information including evidence supporting the claims set forth in the RICO
VERIFIED COMPLAINT (see infra). Such includes and as set forth in the case,
inter alia,
1. A judgment had been entered in my favor in the case, United States District
Court Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth
approximately now in excess of $300,000 remains unaccounted for and
which could be used for payment to creditors, Los Angeles, etc..
2. Counsel Robert Sullivan on my behalf documented by way of certification
upon investigation that Alan Shiff, USBCJ, had falsely stated a dismissal
upon which false statement he predicated a retaliatory and spurious
contempt proceeding against me causing substantial damage, and for
which he sought Judicial Notice of those and related proceedings as did I
in some of my filings.
3. The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to
Defendant Coan’s failure to file anything whatsoever by the court’s
deadline causing creditors and me substantial damages: [ Shiff Order of
Dismissal With Prejudice on Coan’s Failure to File Page 1
Page 2 ]
4. Defendant Coan had filed an action against me to prevent me from suing
him which necessitated me to fly to Connecticut for a hearing before The
Honorable Robert N. Chatigny, Chief Judge, USDC, District of Connecticut,
who denied Coan’s requested relief as to Coan but precluded my action
against Shiff (although there is no immunity, judicial or otherwise, for
criminal acts, ie., fraud connected with a case under Title 11, USC, etc.) . [
transcript in pertinent part - crossexamofcoanbypeia.pdf ]
assigned the RICO case despite the conflict of interest in light of hundreds
of thousands of dollars of illegal (drug) money being laundered through the
Trump casinos by the RICO defendants, and despite my motion to recuse
her which motion she heard herself and denied, and U.S. Trustee Hugh
Leonard with whom I met personally refused to join or file a separate
motion to recuse and not long thereafter left said office for private practice
at Cole, Shotz, et als on retainer with the RICO defendants as his primary
client.
6. Probative and evidentiary documents, affidavits, exhibits, including those
turned over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to
Assistant U.S. Attorney Jonathan Lacey with whom I met personally at the
U.S. Attorney’s Office in Newark, N.J., at which time Samuel Alito was U.S.
Attorney, and went over said documents and their probative value with
him. Within approximately a month thereafter upon inquiry I was told that
Jonathon Lacey was no longer with the office, that the file/documents
could not be located, and that there was no further information available
concerning contacting him or his location. I thereupon delivered by hand,
copies of said documents to the office of then U.S. Attorney Alito,
addressed to him, with assurance they would go directly to him. In addition
to being inept [ I looked in on the one mob case he had brought, bungled,
lost (accidently on purpose?) since I was suing some mob-connected
under RICO and the court (I had known / previously met outside of court
the judge Ackerman through a client) was absolute bedlam and a total joke
since incompetent corrupt Alito brought in all 20 mob defendants (rather
than prosecute one or a few to flip them first) who feigning illness had
beds/cots in the courtroom along with their moans during testimony and
had the jury in stitches. As much as I hate the mob, it truly was funny, if not
so tragic.], Alito is also corrupt (and maybe corrupt because he is inept).
After a reasonable (but still rather short) time I called to determine the
status and was told that Alito was no longer with the Office of the U.S.
Attorney, that he was (appointed) a federal judge, and that neither the
documents nor any file or record of same could be located. Alito did parley
the same / cover-up into quid pro quo direct lifetime appointment to the
Court of Appeals, 3rd circuit, despite the absence of judicial experience or
successful tenure as U.S. Attorney (Maryanne Trump Barry as well). This is
the same Sam Alito that now sits on the purported highest court in the
land. The real application of the illegal rule ‘don’t ask, don’t tell’.
There is applicable insurance / surety coverage and neither LA, nor creditors,
nor I should continue to have been damaged by this brazened corrupt and
illegal scenario, which should be resolved in accordance with the meaningful
rules of law apposite thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) ******** (cell phone)
continued debacle and bears fault with the other Zionist war mongers.
-- a price that now includes more than 4,400 U.S. dead. ]On Thanksgiving
nefarious sense (
) ]:


# 3 Germany: 6,507,394
… ]


White House offers israel a carrot for peace talks (Washington Post) [ Oh come
on! This dog and pony show is getting old fast while america’s dying and
america could in a day precipitate a peace consistent with international law,
prior u.n. resolutions (i.e., 242, 338, etc.), (Oslo) accords, civilized behavior,
etc., despite and in contravention of israel’s militant intransigence, to stem
the hemorrhaging of american blood and treasure for israel’s sake. ]
Momentum builds at Fed to take new steps on economy (Washington Post) [ Ah,
yes! My favorite ‘glass-perpetually-half-full (though empty)’ wall street shill,
Mr. Irwin, looks to rosy times ahead when happy days are here again,
greenshoots, no-recession and all from ( no-recession-helicopter) Ben (b.s.
for b*** s*** shalom) Bernanke (oj the juice man) fed; and all the while I
thought he’d be talking up the lower foreclosure sales owing to flaws / fraud
in the process (but ignoring the negative impact on the used home sales). ]
Two presidents of influential Fed banks cite poor economic growth and a
inflation level that is lower than what Fed economists consider desirable.
Report: One trader spurred 'flash crash' | User Poll (Washington Post) [ Come
on! No one who understands financial markets really believes this ‘back to
the future of subterfuge as usual’ explanation. This is not to say they don’t
have very high-priced programmers perfecting the ‘high-frequency-churn-
and-earn’ technique to turn such into commissionable opportunities … This
Has To Be A Joke: SEC About To Blame Entire Flash Crash On Waddell And
Reed’s E-Mini Trades Infowars.com / Prisonplanet.com Bloomberg has just
released something which if true, will wipe out every last ounce of credibility
left in the market. As readers will recall, the initial scapegoat that CNBC and
everyone else, who has no clue what really happens in the market decided to
pin the flash crash on, was small Kansas-based trading firm Waddell &
Reed, which traded a few extra contracts of E-Mini futures in the hours
preceding the flash crash. ]
October Topples The 'New Bull Market?' Simon Maierhofer, On Friday October 1,
2010, 7:58 pm
‘Talk about a two-faced month. On one hand, October has a nasty reputation of
delivering market crashes, like in 1929, 1987 and 2008. On the other hand,
October ushers in the sweet spot of the presidential election year cycle. Gains
starting in the mid-term fourth quarter (2010) lasting until the pre-election first
quarter (2011) have averaged around 15% since 1950.
Since the National Bureau of Economic Research (NBER) declared the 'Great
Recession' to have ended in June 2009, we'll use some of NBER's criteria to
examine the market's risks and potential.
What's a Recession?
Here's how NBER defines recession: 'A recession is a period between a peak and
a trough. During a recession, a significant decline in economic activity spreads
across the economy and can last from a few months to more than a year.'
Aha, so economic activity is the key to declaring the onset and end of a
recession. So what is the definition of economic activity? Again, this excerpt is
directly from the NBER website:
'The Committee does not have a fixed definition of economic activity. It examines
and compares the behavior of various measures of broad activity: real GDP
measured on the product and income sides, economy-wide employment, and real
income. The Committee also may consider indicators that do not cover the entire
economy, such as real sales and the Federal Reserve's index of industrial
production.'
Recession Over - Really?
Ok, so let's look at a few of the indictors NBER uses to determine economic
activity:
Unemployment: In June 2009, 16.5% of American were jobless. In August 2010,

16.7% of Americans were jobless. If the candor of those numbers surprises you,
it's based on the U-6 figures published by the Bureau of Labor Statistics. Even
the more commonly known U-3 number increased from 9.5% in June 2009 to 9.6%
in August 2010.
Real income: According to a new study released by the Census Bureau, 1 in 7

Americans lives in poverty. The overall poverty rate climbed to 14.3% or 43.6
million people, the highest since the 1960s. The poverty level for 2009 was set at
$21,954 for a family of four. Imagine what the poverty rate would be if these
households weren't receiving continually extended unemployment checks.
GDP: Just a few weeks ago, the government revised - in this context revised
means lowered - the GDP numbers for 2007, 2008 and 2009. GDP for 2007 was
revised down from 2.5% growth to 2.3%. The 2008 decrease was lowered from
1.9% to 2.8% and 2009 growth was revised up from a 0.1% to a 0.2% increase.
If you feel that a 0.2% year-over-year 'bounce' in GDP is enough to usher in a new
bull market, a revisit in economics 101 is advised.
The chart below plots the S&P 500 against various economic indicators. The grey
line marks the post-June 2009 recession period. [chart]
Dare to be Different
For obvious reasons, the government and Wall Street would like us to believe that
the stock market rally is a reflection of an economy gathering steam. Even most
of the media is convinced that's the case and we are encouraged not to doubt
them.
So, dare we consider facts and developments that might derail this post-
recession bull market? Yes, even at the risk of being considered party poopers,
dare we do!
Change of Perception
Perception is probably the most persuasive and least reliable force to influence
our decisions. Like a caterpillar, perception morphs from its humble beginning as
a disrespected and misunderstood line of reasoning to a popular and crowd-
pleasing mass movement.
For example, the March 2, 2009 buy alert by the ETF Profit Strategy Newsletter
was met with mockery and disbelief. A year later, this once scorned idea had
morphed into a movement with mass appeal.
By April 2010, there was no question that the bull market was over. In fact, by
many measures, investors were more optimistic about American's future
prospects than in the year 2000 or 2007.
Two weeks before the April 2010 high watermark was reached, the ETF Profit
Strategy Newsletter warned: 'The message conveyed by the composite
bullishness is unmistakable bearish.' Since the May 6 'Flash Crash' we've been
caught up in a roller coaster of emotions as the market zigzagged from support to
resistance.
The final jury is still out on what's next, but we know that perception can change
at a whim. Don't misinterpret the current bullishness as a reliable buy signal.
A Dangerous Apple
Apple might very well be the most influential company on the planet today. Why?
Apple has a 20.32% weighting in the Nasdaq (Nasdaq: QQQQ - News) and 12%
weighting in tech sector ETFs (NYSEArca: IYW - News).
As Apple goes, so goes the Nasdaq (Nasdaq: ÎXIC). If the high beta Nasdaq is
up, the S&P (SNP: ^GSPC), Dow Jones (DJI: ^DJI), Russell 2000 (Chicago
Options: ^RUT), and others often follow.
Apple (NasdaqGS: AAPL - News) has a market cap of $264 billion, 20% bigger
than Microsoft. Yet, Apple carries a 5x bigger weight in the Nasdaq than
Microsoft.
This lack of 'weight management' is due to an oddity that goes back to the late
1990s when the QQQs were launched. Back then a mechanism was put into place
to keep Microsoft, which often accounted for 30 - 35% of the Nasdaq, below the
25% threshold (important for tax purposes).
Since then, Microsoft's weighting has been systematically and consistently

reduced, while Apple has yet to reach the 25% level before experiencing a similar
fate.
Regardless, if Apple sneezes, the market gets a cold. Since its 2009 low, Apple
has rallied nearly 300%. The advance since late August is the steepest leg of the
rally. The stock has been trading above its upper acceleration band for over
three weeks and is extremely overbought.
A Rotten Bunch of Apples?
Apple moved from the status of underdog to top dog. The problem with being the
top dog is that expectations become higher and higher. There comes a saturation
point where expectations simply can't be met anymore. At that point, the stock
price has nowhere to go but down.
After selling more than several million new iPhones and iPads, one has to wonder
if Apple can keep up this pace of sales in an obviously deteriorating economy.
And, if and when Apple sneezes ...
Of course a spoiled Apple is not the only danger than may befall Wall Street. A
return of reality would be enough to pummel stocks.
In fact, knowing that NBER likes to take its time when declaring the beginning
and end of recessions, we might already be in the next recession and not even
know it.
Over the next few months investors will have to navigate through a maze of
conflicting currents. October for example, is one of the best months of the year.
October, however, has also a reputation of ushering in bear markets.
The fourth quarter of the mid-term election year is the sweet spot of the
Presidential Election year cycle, while the still looming Hindenburg Omen and
other prominent sell signals contradict this long-standing bullish seasonality.
To navigate such treacherous waters, the ETF Profit Strategy Newsletter provides
safety and target levels that help narrow down the market's path, along with the
ultimate target range and semi-weekly updates.’
It's October: Should We Be Scared? [ In this over-priced, over-valued, over-

bought market, be scared … be very scared! ] Slusiewicz ‘The month of October
conjures up thoughts of market crashes and other frightful events. As we start
the fourth quarter investors are wondering about the near term direction for the
markets – are we dressed as bulls or bears? There are many factors that will
come in play, that should clear up that picture very shortly. Make no mistake
about it, regardless of whether you are a bull or a bear -we are extended and
extended big time right here and now. I believe we will have some sort of
correction in the near term. Its how deep and what follows that correction that
matters most.
The markets staged a big run-up for the month of September. It was the best
September since 1939. What happened after that run-up in 1939? Well it took until
January 1945 to get back to those levels. If you recall your history – World War II
may have had something to do with declines over that duration and I’m not
predicting the next world war. However, there does appear to be a contest that is
going on between countries across the globe to see who can devalue their
currency the most and the fastest.
It appears that the US is winning the race to devalue its dollar. The stock market
seems to leading the cheer for this catastrophe to happen. As the dollar declines
the goods manufactured by US multinational companies are more competitive
overseas. Also repatriation of foreign currencies back into US dollars can be a
profitable endeavor, enhancing corporate profits as our money weakens. Oil back
over $80 a barrel is another by product of a weak currency. The US consumes
half the gasoline in the world. We’re pretty much a captive market for the foreign
oil producing nations. As our money’s purchasing power declines – they demand
more dollars to make up the shortfall – because they can! Is higher oil and a
weaker dollar good for the average American?
According to the Commodity Futures Trading Commission the bullish sentiment

for the US dollar is close to 0%. We, as Americans, can only hope that sentiment
acts as a contrary indicator and the dollar starts to rally soon. Gold is giving all
global currencies a thumbs down. Central Banks across the globe are trying to
devalue their own currency, by printing more green, red, or orange dollars in their
own countries flavor and using their freshly minted currency as bailout money.
With the US Dollar as the global reserve currency – we seem to be winning the
race currently, but is this really what we want to do?? I think not, but others are
rejoicing.
As far as our markets are concerned, we have entered into one of the seasonally
weakest periods of the year. Mutual Fund cash levels are at an all time low. Gold
set yet another all time high Friday. Silver is at a new rally high as well. Gold and
silver are fear trades. It seems contradictory that a weak dollar would drive the
price of precious metals to new highs and indicate that the US business machine
(as measured by the stock indices) would do well at the same time.
Technically, stock prices are at the upper boundary of a channel trend. Some
markets like the NASDAQ 100 have formed an almost parabolic chart pattern
since September 1st. Parabolas’ generally end and reverse into a mirror image.
Daily stochastics are on a sell signal and the weekly stochastics are in nosebleed
territory ready for a turn. Bearish divergence is occurring on the NYSE, RUT,
S&P, and the NASDAQ Advance Decline lines. Advance / Decline divergence is a
very reliable signal seen near market turns.
Fundamentally new home sales the last two months were the worst ever and
second worst on record. The jobless claim numbers remain very high and
sentiment seems to be getting worse. Make no mistake we are in a zone where a
healthy sell off could occur. It's the magnitude of that sell off that we want to
watch. Do we stop at 1122, 1105, or do we retest 1040 or more?
The real test will be what happens after we pullback and have a rally attempt. It
will be interesting to watch and maybe worth a revisit. I believe the US dollar will
be the key!
Disclosure: Positions in GLD, SDS, SH and SLV’

The Q Ratio Indicates a Significantly Overvalued Market: A Comprehensive Look
Short ‘The Q Ratio is a popular method of estimating the fair value of the stock market
developed by Nobel Laureate James Tobin. It's a fairly simple concept, but laborious to
calculate. The Q Ratio is the total price of the market divided by the replacement cost of
all its companies. The data for making the calculation comes from the Federal Reserve
Z.1 Flow of Funds Accounts of the United States, which is released quarterly for data
that is already over two months old. The first chart shows Q Ratio from 1900 through
the first quarter of 2010. I've also extrapolated the ratio since June based on the price of
VTI, the Vanguard Total Market ETF, to give a more up-to-date estimate. (chart)
Interpreting the Ratio
The data since 1945 is a simple calculation using data from the Federal Reserve Z.1
Statistical Release, section B.102., Balance Sheet and Reconciliation Tables for
Nonfinancial Corporate Business. Specifically it is the ratio of Line 35 (Market Value)
divided by Line 32 (Replacement Cost). It might seem logical that fair value would be a
1:1 ratio. But that has not historically been the case. The explanation, according to
Smithers & Co. (more about them later) is:
The replacement cost of company assets is overstated. This is because

the long-term real return on corporate equity, according to the published
data, is only 4.8%, while the long-term real return to investors is around
6.0%. Over the long-term and in equilibrium, the two must be the same.
The average (arithmetic mean) Q ratio is about 0.70. In the chart below I've adjusted the
Q Ratio to an arithmetic mean of 1 (i.e., divided the ratio data points by the average).
This gives a more intuitive sense to the numbers. For example, the all-time Q Ratio high
at the peak of the Tech Bubble was 1.82 — which suggests that the market price was
158% above the historic average of the replacement cost. The all-time lows in 1921,
1932 and 1982 were around 0.43, which is 57% below replacement cost. That's quite a
range. (chart)
Another Means to an End
Smithers & Co., an investment firm in London, incorporates the Q Ratio in their analysis.
In fact, CEO Andrew Smithers and economist Stephen Wright of the University of
London coauthored a book on the Q Ratio, Valuing Wall Street. They prefer the
geometric mean for standardizing the ratio, which has the effect of weighting the
numbers toward the mean. The chart below is adjusted to the geometric mean, which,
based on the same data as the two charts above, is 0.65. This analysis makes the Tech
Bubble an even more dramatic outlier at 179% above the (geometric) mean.(chart)
The More Complicated Calculation of Tobin's Q
John Mihaljevic, who was Dr. Tobin's research assistant at Yale and collaborated with
Tobin in revising the ratio formula, uses a more complex formula based on the Flow of
Funds data for calculating Q. The formula is explained in detail at Mihaljevic's Manual of
Ideas website. The chart below uses the Mihaljevic/Tobin formula for the Q calculation.
(chart)
I would make two points about the more intricate formula. First it produces results that
are remarkably similar to the simple calculation (first chart above. Also, the chart here
differs somewhat from the version posted at the Manual of Ideas website (reproduced
here), even though my chart uses the Manual of Ideas calculation formula. I've
corresponded with John about the differences, and he explained them as an artifact of
undocumented revisions to the government's Flow of Funds data. The Manual of Ideas
Q Ratio is updated quarterly when the latest Z.1 numbers are released, and no changes
are made to the ratio for previous quarters. My charts were built from scratch with the
historic Z.1 data with any undocumented revisions included.
Note: My calculations with the last two Z.1 releases confirm John's explanation of
undocumented Fed tinkering with the older data. The changes are relatively minor, but
they have resulted in over a dozen quarterly Q modifications ranging from -0.01 to
+0.02, with the upward adjustments clustered toward the recent quarters.
Extrapolating Q
Unfortunately, the Q Ratio isn't a very timely metric. The Flow of Funds data is over two
months old when it's released, and three months will pass before the next release. To
address this problem, I've been making extrapolations for the more recent months
based on changes in the market value of the VTI, the Vanguard Total Market ETF,
which essentially becomes a surrogate for line 32 in the data. The last two Z.1 releases
have validated this approach. The extrapolated ratios for July, August and September
(to date) are 0.97, 0.92, 0.99 respectively.
Bottom Line: The Message of Q
The mean-adjusted charts above indicate that the market remains significantly
overvalued by historical standards — by about 41% in the arithmetic-adjusted version
and 52% in the geometric-adjusted version. Of course periods of over- and under-
valuation can last for many years at a time.
Disclosure: No positions’
Some dour commentary from Paul Krugman this morning on the implications of
our monster debt. Economists Herald New Great Depression The world is
currently experiencing the modern day equivalent of the Great Depression,
according to a prominent economist who has added his voice to scores of others
now forecasting ongoing economic doom on a scale not seen since the 1930s.) ,
and my position and that of demographer Dent ( Prechter and many others are
also in this camp although I believe he does not factor in sufficiently the
debasement of the u.s. currency / dollar in arriving at his numbers which do
however, at 1,000 on the DOW reflect real, as opposed to inflated values of 3-
4,000 owing to the ever more worthless Weimar dollars which provides ‘spin
material’ for the wall street frauds but is really quite ominous going forward, and
very detrimental in real economic terms.) [This is a global depression. This is a
secular bear market in a global depression. The past up move was a manipulated
bull (s***) cycle in a secular bear market. This has been a typically manipulated
bubble as has preceded the prior crashes with great regularity that the wall street
frauds and insiders commission and sell into. This is a typical wall street churn
and earn pass the hot potato scam / fraud as in prior crashes’. This national
decline, economic and otherwise, will not end until justice is served and the wall
imposed. Krugman: It's All Downhill From Here Cullen Roche Love him or hate
him Paul Krugman has been awfully right with regards to the macro picture in the
last few years. He’s one of the rare economists who had the foresight to see the
housing bubble and the likelihood of economic downturn that would result from
it. Krugman recently caused a stir when he said the US economy was headed for
the third depression.]
Race to the Bottom Long ago, before economic models developed their current
levels of sophistication, it used to be that the goal of a government’s
economic policy was to bring prosperity to its citizens; in other words, to
raise the general level of material comfort, while at the same time reducing
the amount of toil required to attain that end.
M2 Update: 11th Consecutive Weekly Increase M2 continues its inexorable rise

higher, and while by all indications the various shadow components of M3
are declining, the Fed and the banking system sure are doing everything in
their power to reflate traditional monetary liabilities.
Waiting for the Next Financial Meltdown Infowars.com | “Inside Job” director
Charles Ferguson takes an in-depth look at how banksters brought the
nation to the brink of a collapse.
Gold Gains Above $1,320 Reuters | Gold prices rallied to record highs above
$1,320 an ounce on Friday as the dollar weakened further on soft U.S.
manufacturing data.
Protests Against Austerity Sweep Europe Mail Online | Strikes and

demonstrations caused chaos across Europe yesterday as rioters clashed
with police and cities were brought to a standstill.
National / World
Climate Film Depicts Children Assassinated For Not Reducing Carbon Footprint
Paul Joseph Watson | Vulgar video pulled by global warming organization
proposes ‘final solution’ for AGW skeptics.
Background Checks Required to Visit Your Kids at School Matt Ryan | Over 3,700
schools in Texas and 7,000 nationwide have implemented a system requiring
parents visiting their children to undergo a background check upon arrival
to the school.
Fox News Boss Murdoch Calls For Legalizing 40 Million Illegals Kurt Nimmo |
Murdoch claims legalization will increase the tax base and protecting the
border is cost prohibitive.
Bill Gates says vaccines can help reduce world population Mike Adams | Bill
Gates’ statement implies that vaccines are a method of population
reduction.
Feds Use Pre-Crime To Target Disgruntled Veterans Paul Joseph Watson | Mind
Machine Project purports to find domestic terrorists by building
psychological profiles from illegally wiretapped phone and email
conversations.
Climate Cult Indoctrinating Our Kids With Depraved Death Wish 10:10 Global’s
revolting and macabre climate change infomercial, for which the
organization has already been forced to apologize for and remove, in which
children who refuse to lower their carbon emissions are brutally liquidated
in a bloody gorefest, unveils one of the primary goals behind the global
warming cult movement – to encourage children to kill themselves in the
name of saving the planet.
Climate Film Depicts Children Assassinated For Not Reducing Carbon Footprint
A new climate change infomercial released by a prominent global warming
activist organization depicts children being assassinated for not reducing
their carbon footprint, as AGW skeptics are grotesquely blown up with
innards and blood splattering everywhere, a frightening reminder of the fact
that the environmental agenda is merely a veil for a hideous religion of
death, and that the vehemently discredited and increasingly desperate
global warming movement is in the last death throws of its existence.
The 10:10 movement: all skeptical kids and adults will be detonated on 10/10 Yes,
they will simply kill all people who are openly skeptical. No pressure. Just a
little bit of pressure that is needed to press a red button and all skeptics in
the world will explode in bloodbath. It was their choice – and the alarmist
killers will continue smiling.
US Government’s Human Experimentation Apology: They’re Only Sorry They

Were Caught The US government has today apologised for intentionally
infecting almost 700 people in Guatemala with sexually transmitted diseases
in the 1940s, however, it has not apologised for countless other similar
atrocious experiments and programs that it has engaged in and continues to
engage in, amounting to an all out biological and chemical warfare attack on
humanity.
Merkel calls for calm as rail protest turns ugly Chancellor Angela Merkel called
for calm Friday after riot police used what critics called “Rambo” tactics to
disperse thousands of opponents of a contentious rail project.
Militants Destroy 27 Nato Oil Tankers in Southern Pakistan After Supply Route to
Afghanistan Closed Suspected militants in southern Pakistan have
destroyed at least 27 tankers carrying fuel for foreign troops in Afghanistan.
The incident came the day after the Pakistan government blocked supply
routes to its neighbour in an apparent protest at a Nato air raid which killed
three Pakistani troops.
Deadliest September Yet for U.S. Troops in Afghanistan; More Than One U.S.
Soldier Dying Per Day on Obama’s Watch September 2010 has been the
deadliest September yet for U.S. troops in the 9-year-long war in Afghanistan
as U.S. troops continued to be killed at a pace of slightly higher than one a
day during the Obama presidency.
Computer worm attacking Iran’s nuclear facilities ‘includes Biblical link to Israel’
Israel has been linked to a complex worm currently attacking computers in
Iran, which experts claim may have been designed to target the country’s
nuclear facilities.
Royal Dutch Shell among host of international companies quit Iran oil field
project to escape U.S. sanctions Royal Dutch Shell and a host of other
international oil companies have ended operations in Iran to avoid U.S.
sanctions aimed at halting its nuclear enrichment programme.

Merkel calls for calm as rail protest turns ugly...
Photos show US soldiers posing with Afghan corpses...
US apologizes for '40s syphilis study in Guatemala … Unconflicted
psychopaths! ...
'One In 10' Americans Depressed...
Gore fails to mention Obama during Dem rally...
VIDEO: Crowd Chants 'You Are a Fraud!' -- 'Global Warming is Hoax!'...
AZ Sheriff: Obama's 'Got His Hands Wrapped Around Our Throats'...
Photos show US soldiers posing with Afghan corpses – Nothing like those
publicity photos for winning ‘hearts and minds’ in Afghanistan and throughout
the world, and just before committing suicide themselves, and lending creedence
to the proscription against illegal drug use as causative of strange, savage,
illegal, bizarre, etc., behavior … consistent with that notoriously infamous query,
‘What were they smoking?’. How pathetic war-mongering, defacto bankrupt
america has become! (AP)
Cats vs. birds (Washington Post) Poll | Bird lovers are worried about feline
attacks on their feathered friends. Whose side are you on? [ Birds (I don’t
hate them … I like hawks, owls, and hummingbirds(their aerodynamics), for
example) are but feathered remnants of dinosaurs (extinct); while felines
are the only hopeful creatures in the most positive sense for the planet and
Cats should roam free! ]
Lawmakers urge Geithner to retain U.S. voting rights at IMF (Washington Post)
[ Somehow incredulous, coming from a defacto bankrupt nation, engaged in
perpetual war based on lies and fraught with war crimes and the nation
whose fraudulent worthless paper (still out there in the many trillions) has
tanked the world economy, and one must wonder who in the world still
takes america seriously at their peril. ] Senate panel backs Treasury
Department?s goal of reshuffling the International Monetary Fund, but urges
the agency not to barter away any U.S. authority.
Report gives stimulus package high marks (Washington Post) [ What do you
expect them to say? Particularly, a month before elections. Every economist
who is not invested, governmentally, financially (stocks), politically, by
reputation or otherwise, has (though only vaguely and very sparingly if at all,
reported) unequivocally deemed the stimulus as straight ‘F’s’; viz., failure.
After all, the nation’s defacto bankrupt and Nobel Prize Winning Economist
Paul Krugman says we’re in a Depression and the u.s. will default on her
debt! Krugman: We’re Going To Have To Default On Our Debt One Way Or
Another Some dour commentary from Paul Krugman this morning on the
implications of our monster debt. Economists Herald New Great Depression
scores of others now forecasting ongoing economic doom on a scale not
seen since the 1930s.) , and my position and that of demographer Dent (This
is a global depression. This is a secular bear market in a global depression.
The past up move was a manipulated bull (s***) cycle in a secular bear
market. This has been a typically manipulated bubble as has preceded the
prior crashes with great regularity that the wall street frauds and insiders
the hot potato scam / fraud as in prior crashes’. This national decline,
economic and otherwise, will not end until justice is served and the wall
imposed. Krugman: It's All Downhill From Here Cullen Roche Love him or
hate him Paul Krugman has been awfully right with regards to the macro
picture in the last few years. He’s one of the rare economists who had the
foresight to see the housing bubble and the likelihood of economic
said the US economy was headed for the third depression.]Coming barely a
month before November's midterm elections, the White House report
challenges public perceptions of the stimulus aid as slow-moving and
wasteful - an image that has fueled voter anger with the dominant party.
Even some former skeptics who predicted that the money would lead to
rampant abuse now acknowledge that the program could serve as a model
for improving efficiency in government.
Officials assess TARP (Washington Post) [ I don’t buy it! … that, ‘things would be
much worse garbage, rhetoric’ … for who … the perps whose frauds caused
this financial debacle yet remain unprosecuted and flush in part with the
cash used to bail out and cover-up the frauds, including mark to anything
(FASB legislative) help though the worthless paper from the last fraud’s still
out there… Come on! Wake up! ]Despite initial fears that taxpayers could
lose hundreds of billions of dollars, the estimated cost of $700B aid has
decreased steadily as banks have repaid money and as the Treasury has
received interests on investments and sold stakes in firms it helped rescue.
U.S., AIG finalize payment plan (Washington Post) [ Does not anyone see the
‘devil in the details’ here, where though defacto bankrupt and pervasively
corrupt, the government being desperate in so many ways, the quid pro
quo’s already so rampant and detrimental to the nation would become
almost obligatory making common stock ownership of non-governmental
public corporations a system destroyer and beyond the pale. Where does
this end, or begin to end for that matter, and, how? ] Deal aimed at restoring
the troubled insurance firm to independence and repaying the massive
taxpayer aid.
'Not more than 30 seconds' to sign each foreclosure document (Washington Post)
[ Well, the fraudulent wall street glass-half-full (though empty) camp say … ‘good
for used home sales numbers’ as an excuse to push those computerized
programmed trade buttons higher’. Mr. Denninger expounds, see infra. Market
Outlook: Warning Signs Karl Denninger (Yes, Karl … true as the night follows the
day … Reality Does Bite! ) Anyone following the markets knows the drill by now.
A bad economic report comes out (e.g. consumer confidence) and the market
plunges 1%. An hour later, there's a magical reversal and suddenly, we go to new
highs for the day, which "sticks" until the close. ] A OneWest Bank employee
says she and her team of seven others have signed 6,000 documents a week, or
about 24,000 a month, without reading all of them.
Market Outlook: Warning Signs Karl Denninger [ Yes, Karl … true as the night
follows the day … Reality Does Bite! ] Anyone following the markets knows the
drill by now.
A bad economic report comes out (e.g. consumer confidence) and the market
plunges 1%. An hour later, there's a magical reversal and suddenly, we go to new
highs for the day, which "sticks" until the close.
A huge IPO gets pulled (Liberty Mutual) due to bad conditions - the market sells
off at the open, and goes down about 3/4%. Then there's a magical reversal and
we go to new highs for the day.
Trucking volumes collapse and are reported. The market sells off, and then
suddenly, there's a magical reversal and the market goes to new daily highs.
Merideth Whitney comes on the air and says that regional banks are cooked -
their revenue model is broken and the collapsing yield curve will crush them. In
addition, trading volumes are down at the major investment banks, so that will
cream their earnings. BANK, the Nasdaq Bank index, takes off on a literal vertical
tear as soon as she says this, rising by more than FORTY POINTS in an hour.
David Tepper says that if the economy is good, the market will go up. If the
economy is bad, The Fed will print more money and devalue the currency, and
the market will go up. Nobody questions the obvious disconnect (since when can
you borrow your way to prosperity, or debase your way there - and in what
instance in history has this ever worked?) but the magical buy-fairy shows up
and the markets scream higher, rising nearly 3%.
Does anyone remember 2007 or early 2008?
Bear Stearns blew up and the overnight futures were essentially lock-limit down.
What happened right after that? The magical buy fairy showed up and we went to
recovery highs - nearly 200 handles above where we were when Bear exploded.
(chart)
Anyone remember "Buffett will buy the world"? Was anyone ever prosecuted for
all the false rumors that moved the market 1 or even 2% in the last hour of trade -
those rumors always seemed to hit CNBS when the market was down 1% or more
and threatening to break some key technical level. Suddenly, an outright lie
would be "disseminated" and the market would violently reverse.
How about Dick "I'm gonna burn the shorts" Fuld? The market roared, right? For
how long? And was he right - or was it Lehman that burned?
Look, you can blame manipulation, you can blame The Fed, you can blame
whatever you want.
But what I know from more than 10 years of trading is this:
When the market starts to act like this - when there's

this "invisible hand" that magically levitates things,
when people resort to disseminating outright lies about
the market or specific companies and do so to
counteract actual bad news that would otherwise result
in moves down, it is a sign of desperation - there are
people with money and power who are on the wrong
side of the bet and they are willing to deceive you and
rip you off outright to avoid being the one with the bag.
Do with that information what you will.’
THE POP LOOKS LIKE A TOP - Harry Schiller ‘This morning's explosive pop to
multi-month highs had many bulls excited about the much-anticipated breakout
above resistance at the 1150 level of the S&P 500 (SPX) and the next big bull leg.
But a simple look at the daily charts might have dispelled some of this bullish
hoopla, as the morning gap-up opening not only served as a catalyst for this brief
frenzy about a breakout, but also satisfied (or almost satisfied) some important
overhead objectives. Here's the rule, folks: If the market surges at the opening,
leaving big opening gaps and returning to the tops of previously unfilled gaps --
especially gaps that the market has been working on for several days -- DON'T
BUY IT. It's that simple. In fact, I'd take it a step further: Look for spots to sell and
sell short, but use tight stops above the tops of those gaps. This is,...’
The Stock Market Crash of the '00s Lounsbury ‘Here is a graph of the stock
market crash over the past ten years, from Business Insider Clusterstock:
[ chart ]
The S&P 500 has declined approximately 85% from the 2000 high. This rivals the
1929-32 crash where the Dow Jones Industrial Average lost 89%. These two
declines are the worst U.S. stock market declines in history, when looked at with
respect to the value of gold. A review of the secular market cycles since 1900 can
be found here.
A more detailed analysis of the market decline from 2000 was published in
January and contained this chart for DJIA data:
[ chart ]
With gold now over $1,300 an ounce, a return to the March 2009 lows would
establish a valuation very close to the 89% loss line. If gold were to rise to the
$1,500 mark, a Dow value a little above $7,000 would constitute an 89% loss from
the year 2000. The inflation adjusted high from the early 1980s corresponds to a
price for gold between $2,100 and $2,200 today. If that price were achieved the
current market value for stocks would be an 89% loss from the top.’
Protests Against Austerity Sweep Europe Mail Online | Strikes and

demonstrations caused chaos across Europe yesterday as rioters clashed
with police and cities were brought to a standstill.
Dollar Set for Biggest Monthly Loss Since 2008 Bloomberg | The dollar headed for
its biggest monthly loss since 2008 versus the euro as signs the U.S.
economy is slowing damped demand for the nation’s assets.
Is Government About to Make Mortgage Market Even Worse? CNBC | Mortgage-

purchase applications are 32 percent lower than they were last year.
Is Spain Is Faking Its GDP Data? An anonymous email making the rounds in
Europe points out some disturbing discrepancies in Spanish economic data.
In short, the report’s author asks why Spain’s massive surge in
unemployment during the recession did not yield a commensurate drop in
GDP, as was the trend across Europe.
Distressed Homes Sell at 26% Discount in U.S. as Supply Swells Homes in the
foreclosure process sold at an average 26 percent discount in the second
quarter as almost one-fourth of all U.S. transactions involved properties in
some stage of mortgage distress, according to RealtyTrac Inc.
Distrust In US Media Hits Record High, As CNBC (And Especially Mad Money)
Viewership Drops To Multi-Year Low In today’s “less than surprising data
point” category, the clear winner is Gallup’s analysis of people’s ever
increasing distrust in the mass media.
Cheapening Currency Also Has Risks It is interesting to watch Wall Street defy
reality. This is a scene we’ve observed since the early 1960s, the effect of
debt on the economy and the nation and in turn on its currency.
National / World
‘Resentment Toward Government’ Number 1 Google Hot Topic Matt Ryan | On

today’s Alex Jones Show, Alex called for everyone to Google the phrase,
“Resentment Toward Government” and once again, the the term given on
the show reached the top spot on Google Trends.
New Infowars Search Term: Resentment Toward Government Kurt Nimmo | We

need to draw attention to this criminal effort by the government to violate the
Fourth Amendment and trash our founding ideals.
Authorities Plan To Trawl Phone Calls And E Mails For Signs Of “Resentment
Toward Government” Paul Joseph Watson | Facecrime: Orwellian technology
seeks to identify disgrunted Americans as terrorists.
UN Policy Paper Describes Incremental Steps Toward World Government Jurriaan

Maessen | The IMF and World Bank will always have final say in the
construction of any international system.
The Next Stage: Global Naked Body Scanners Kurt Nimmo | DHS boss Napolitano
will urge 190 nations to adopt the dangerous machines.
Ultra Elitist Environmental Group Forced To Admit Doubts On Global Warming

Science Ultra elitist environmental group The Royal Society has conceded
that it has “uncertainties” over the science behind global warming, and
admits that the planet is currently no longer heating up – a development that
constitutes another significant blow to the idea that there is a scientific
consensus on the matter.
Gold Buffalo Sells For $200 Above Spot As US Mint Runs Out One ounce gold
American Buffalo coins are selling for nearly $200 dollars above spot on
eBay following the US Mint’s announcement that it had run out of the highly
sought after coin and would not restock supplies amidst soaring gold
prices.
Authorities Plan To Trawl Phone Calls And E Mails For Signs Of “Resentment
Toward Government” Do you resent the government for enforcing
Obamacare or raising your taxes? Write about it in an email or talk about it
on the phone and you could be placed under surveillance as a potential
terrorist, if frightening new technology being shopped to law enforcement
agencies is implemented.
Pakistan Blocks NATO Supplies After Deadly Air Strike Pakistan blocked the
passage of supplies for NATO troops fighting in Afghanistan after an air
strike killed three of its soldiers, government officials in its northwestern
border region said.
Russia denounces West’s beefed up Iran sanctions Russia Wednesday called on

Iran to heighten cooperation with the UN atomic watchdog, but also
criticized the United States and European Union for imposing extra nuclear
sanctions outside the United Nations.
Drudgereport: [ Wow! Things and wobama are getting, in the immortal words of Lewis Carroll,
curiouser and curiouser! And more desperate! ] HIP HOP BARACK!
VIDEO: 'IT TOOK TIME TO FREE THE SLAVES'...
Democratic National Committee enlisted artist B.o.B to perform...
Lyrics: 'I'm Dat ******'...
’Im Dat Nigga Lyrics

Im that ni**a X3
and im clean, that machine,
super cool, super mean
(T.I.)
You Already know,
im the hottest ni**a you heard in a long time,
introducin you to the hottest n**a you heard in a long time..
mega pimp, super clean, the coolest in the universe. Ni**as hatin on what he doin,
just mad cause they aint do it first.
his name pop up when you hit "playa" on ya google search. Bit**es bow they
heads and bend they knees, just like they do in church.
drop dough into a purse, before you get into a skirt.
she agree to do the work, before she get into the purp.
till my pine box drop down into the dirt, ima be by far the hottest ni**a known to
the earth. in the air i fly cant compare, my swagger to another rapper dont you
dare try, anybody wit a pair of eyes can look and see, no licorcy, will ever be, next
to me. or nothin near by. tho i invite you all to try, aye, ima a fair guy. just
approach with caution, be aware, cause i dont share my..thrown. my crown i own,
hottest flo on any song. im on im gone...ni**a!
B.o.B you up next baby,
GRAND HUSTLE NI**A!
if i aint the hottest ni**a on the mutha f***in universe, i guess ill just have to do till
he get here ni**a!
(B.o.B)
Here i go...
Im that ni**a that you heard about thru word of mouth,
they prolly said i change the music in the dirty south,
now that the word is out,
the timing is perfect now,
to take all these hypicritical rumors and burn em down.
if you observe the doubt you would see what they worried bout,
they say i sound like dre when im rappin bout virgins now,
honestly, i could give a fu** wut you blurtin out.
point blank, im in the game..rockin my jerseys now.
so just accept me or dont pay me no mind,
either way you gonna be hearin me all the time,
wether on greg street, or 107.9,
or on yo favorite rap blog, on yo rap website,
and if that aint right, then show me straight to the judge.
just like bryan nichols i aint spittin, nuthin but slugs,
venomous blood in my vains,
chemicals up in my brain,
yes i resemble a criminal,
B.o. Bizzle, you aint fu**in wit mane!
ahhh!’
PUMP UP THE BASE: 'IT TOOK TIME TO FREE THE SLAVES' [ How ‘bout freein’
them by putting them in jail! Do people really listen to that s**t? How totally
regressive! Enough to make you want to vomit! ]
USA 'Practically Owned' by China...
Irish Deficit to hit 32% of GDP!
House slaps China over currency (Washington Post) [ Oooooh! Facetime /

soundbites galore … and near the election no less … yet, reality says the
structural shift is a fait accomplis and this is just more ‘too little / too late,
meaningless grandstanding’. ] Vote allows tariffs to be imposed on
countries that chronically undervalue their currencies to gain trade edge.
Experts warn that the move could prompt retaliation. Previous: Trade
legislation to advance (Washington Post) [ Riiiight! That evil Chinese
currency, ‘the juan dragon’, and those sneaky communist Chinese
practicing capitalism (how dare they – but they’ve already lost hundreds of
billions on american paper) with the technological transfers from america
along with those short-run economic / financial blasts from the past
including contraindicated (for defacto bankrupt america) congressional /
executive trade legislation (NAFTA, etc.) as america fades to red. Sounds
like a plan … of too little, too late in light of the irrevocable structural shift;
and, the inevitable blowback and there will be blowback. ] House leaders are
moving forward with bill to combat China's currency policies, adding to
pressure from the administration and giving lawmakers an election-year
chance to vote on a sensitive trade issue.
U.S. pressures Iranian officials (Washington Post) [ Boy! You just can’t make
this stuff up! Defacto bankrupt america (and their terrorist client state israel) has
engaged in war crimes, including murders of civilians, among other literal killing,
raping and plundering of nations, based literally in some instances on lies, etc.,
violating international laws, u.n. resolutions (ie., 242, 338, etc.), torture,
kidnapping/torture and they’re talking about … Iran? What parallel universe do
they purport to reside in …? I’d say a suitable place called he*l. ]The Obama
administration is stepping up pressure on Iran with a fresh set of penalties
against eight senior officials for alleged human rights abuses.
Four key questions for the Fed (Washington Post) [ ‘Mr. wall street-glass-half-
full-Irwin’, wall street’s behind the curve apologist who tries to make sense
of nonsense; albeit spoonfed by media shills as Mr. Irwin to make
manipulation seem to have a semblance of rationality. More Federal
Reserve action: How would it work? (Washington Post) Here is a guide to
the range of technical and strategic questions that Fed leaders will need to
resolve, should they choose to act, on how to stimulate growth ( Wow! Talk
about Mr. Glass Half-full Irwin being behind the curve. Who do you think’s
been juicin’ the market. Graham Summers explains:
The Only Reason Stocks Have Rallied This Month Graham Summers The Fed
generally claims that it stopped its first Quantitative Easing (QE) program back in
March 2010 and that there were no additional debt monetizations between then
and the announcement of its QE lite program in August.
Yet, as I’ve proven time and again, the Fed has continued to monetize Wall
Street’s debts EVERY options expiration week since QE 1 ended… proving
beyond a doubt that the Fed’s QE program did NOT actually end in March.
Here’s the chart of the Fed’s recent actions for those of you who haven’t seen
this before. Options expiration weeks are in bold… ‘Unbeknownst to most
investors, last week ( no-recession-helicopter) Ben (b.s. for b*** s*** shalom)
Bernanke (oj the juice man) pumped an additional $11.05 BILLION into the system
ON TOP of the $11.15 pumped via the POMOs. In plain terms, THE FED JUICED
THE SYSTEM BY $20+ BILLION IN A SINGLE WEEK, BRINGING ITS LIQUIDITY
PUMPS RIGHT BACK QE 1 LEVELS… ’
Dow 1000? Robert Prechter Thinks So) ]Key questions that the central bank will
need to resolve if it decides to stimulate the economy.
Postal Service close to going broke (Washington Post) [ No surprise here! My

most recent experience with the USPS regarding a very simple request, their
dereliction, and email: Monday, September 27, 2010 5:07 PM
From:
"albert peia" <albert_peia@yahoo.com>
View contact details
To:
"United States Postal Service"
you still haven't provided the requested information. I'm astounded you're still in business. Don
contact me about this again. You're service is pathetic as one would typically expect in a corrup
defacto bankrupt, third-world country.
--- On Mon, 9/27/10, United States Postal Service wrote:
From: United States Postal Service <survey.research-8177~148126@sendyourfeedback.com>

Subject: Your recent experience with www.usps.com
To: albert_peia@yahoo.com
Date: Monday, September 27, 2010, 1:46 PM
To albert_peia@yahoo.com:
Recently you received an E-mail inviting you to participate in a Web-based survey from the
United States Postal Service (USPS). If you have not already taken the opportunity to access th
survey, we again invite you to provide your opinions. The survey is regarding your recent E-ma
to the USPS customer service department. Your opinions are very important to the USPS as we
continually monitor and improve the service provided to customers.
You can provide your feedback by completing a brief 5 minute survey. To participate in the
survey, click on the Web address below. If that does not launch the survey, copy the Web
address into your browser's address/location line. Please copy the entire Web address or the
survey will not work correctly.
http://survey1.sendyouropinions.com/survey.aspx?I.project=w8177&id=148126&password=kkc
If that does not launch the survey, please type in the following web address:
] Americans can still send and receive mail, but the U.S. Postal Service may not
have much left in the bank after this week, as it's set to announce billions of
dollars in losses as early as Thursday.
J.P. Morgan freezes foreclosures (Washington Post) [ Oooooh! Sounds like a

plan! … a typical fraudulent wall street plan … always after the fact by a long
shot! ] ]Decision will affect 56,000 borrowers in 23 states where allegations
of forged documents and signatures are being used to try to overturn
evictions.
Rethinking a Dollar-Heavy Asset Allocation Picerno "Like it or not, significant
dollar depreciation is more probable than most now suppose," writes Simon
Johnson, a professor at MIT’s Sloan School of Management, in a Bloomberg
column today. The market seems to be discounting no less. Certainly the gold
market is roaring higher in part because the odds that the dollar will fall in the
months (years?) ahead look quite a bit better than even. Johnson, co-author of 13
Bankers: The Wall Street Takeover and the Next Financial Meltdown , sees three
reasons why the dollar will trend lower: 1) worries over political gridlock in
Washington as the country grapples with a huge budget deficit; 2) sluggish U.S.
economic growth, which will compel the Fed to focus on lowering long-term
interest rates, a.k.a., a new round of quantitative easing; and 3) the growing
appetite of emerging market nations to diversify their large and growing foreign
exchange reserves into currencies other than the greenback. "The dollar is,
therefore, likely to depreciate against all floating currencies," Johnson predicts.
That's hardly a radical idea these days, considering that the buck has been more
or less weakening since June. The previous rebound in the dollar that prevailed
in the first half of this year now appears to be over. One reason is because of an
increased appetite for risk in the global economy in recent months. When macro
anxiety rises, liquidity tends to gravitate into dollars, the world's reserve
currency. But as investors and governments have become convinced recently
that the economic challenges aren't quite so acute, particularly outside of the
developed economies, the appeal of non-dollar assets and currencies has taken
flight once more. (Chart) "The safe bet is to keep selling the dollar, especially
given reasonably supportive data from the euro," Peter Frank, currency analyst at
Societe Generale, tells Reuters today.Safe? Well, that's going too far. But
certainly it's prudent for U.S. investors to hold some amount of non-dollar
allocations in their portfolios. There are several options, including broad
commodity funds. Commodities, which are generally priced in dollars, tend to
move in the opposite direction of the buck. Two of the more popular exchange
traded products in this corner: iShares S&P GSCI Commodity-Indexed Trust
(GSG) and iPath DJ-UBS Commodity Index TR ETN (DJP). The underlying index
designs are energy heavy, however. For a lesser emphasis on oil and gas, take a
look at ELEMENTS Rogers Intl Commodity ETN (RJI) and GreenHaven
Continuous Commodity Index (GCC).Gold in particular is the leading commodity
alternative to the dollar. The world generally sees the precious metal as the
antidote to Washington's fiat currency, which is why the pair generally share a
negative correlation. Two leading gold ETFs: SPDR Gold Shares (GLD) and
iShares COMEX Gold Trust (IAU).Foreign stocks and bonds priced in local
currencies are another option, although each must be analyzed in concert with
the underlying fundamentals of their respective markets along with the forex
outlook. Although most non-U.S. stock ETFs and mutual funds don't hedge forex,
foreign currency exposure is a bit tougher to find in foreign bond products.
Harder, but not impossible. A small but growing list includes SPDR Barclays
Capital International Treasury Bond (BWX) and iShares S&P/Citigroup Int'l
Treasury Bond (IGOV) Meanwhile, consider too the first local currency emerging
market bond ETF: Van Eck Market Vectors Emerging Markets (EMLC). Keep in
mind that the forex factor tends to be much larger for bonds vs. stocks. Why?
Bonds generally have a relatively low expected return vs. equities, which means
that the forex factor can easily overwhelm the risk/return profile for foreign bond
portfolios.If you can stomach the volatility and have a taste for speculation,
there's also a wide choice of foreign currency ETFs to capitalize on a weakening
dollar, ranging from the PowerShares DB US Dollar Index Bearish (UDN), which is
primarily a euro and yen play, to the emerging-market focused choices )
WisdomTree Dreyfus Emerging Currency Fund (CEW)) as well as individual
country targets (WisdomTree Dreyfus Brazilian Real Fund (BZF) and WisdomTree
Dreyfus Chinese Yuan Fund (CYB)).Investing in currencies comes with a high
risk, of course, and so it's not for the faint of heart. Caveat emptor.But even if
you're a conservative investor with a long-term outlook, and your portfolio is
missing equity and/or bond allocations denominated in foreign currencies, it's
time to rethink what amounts to a huge bet in favor of everything going well in the
U.S. I wouldn't discount the possibility, but neither would I bet the farm on that
scenario either. Disclosure: None
The Seven Lean Years Scenario Is Still Intact Cam Hui ‘The was some recent
buzz in the blogosphere when Jeffrey Hirsch of the Stock Traders' Alamanac
forecast that the Dow would go on an eight-year tear with a target of 38,820 (see
the full comment here). Most commentators focused on the maginitude of the
gain. Lost in the noise of the forecast was that the start of the bull market would
begin in 2017. I have written about this in the past. A lot of long-term analysis is
pointing toward the 2017-8 as the start of a new bull, meaning that we would have
to endure seven lean years. On September 7, 2010, I wrote that:\\
Jeremy Grantham revisited his “seven lean years” scenario in his

July quarterly letter. About a year ago, Art Cashin highlighted the
17.6 year stock market cycle, which pointed to a bottom around 2017.
I also wrote about an academic study that correlated demographic
trends to P/E ratios, which pointed to a long-term bottom around
2018. I also suggested that while markets are likely to be flat longer
term, they are going to be volatile and experience huge intermediate
term swings.
Now Hirsch has bought a ticket on the 2017 train and that ticket is looking more
and more interesting. In that kind of low-return environment, I would reiterate my
thesis that buy-and-hold strategies are likely to disappoint, especially in an era of
uncertain equity risk premiums. Investors need to look to new strategies to raise
their returns.’
Daily State of Markets: A Complete Contradiction? Moenning ‘Good morning. If
you don't mind, please take a moment and put your thinking caps on for me. Now,
let's put the following data into our crowded brains and see what we come up
with. First, we learned yesterday that The Conference Board's Consumer
Confidence Index took a dive in September as all the bad economic news finally
caught up to the public. Next, we learned that the Richmond Fed also took a
pretty big hit and continued its downtrend trend in September, falling to -2 from
+11 in August (and for the record, here's the recent data: July +16, June +23, May
+26, April +30). This was on top of the surprisingly weak data from Monday's
Chicago Fed National Business Activity Index. Finally, let's toss in the fact that
bond yields plunged with the yield on the 10-year falling to its lowest level of this
cycle (2.456%).So, given the above inputs, what should we expect stocks to do?
Let's review: Weak economic data plus falling bond yields equals... Yep, that's
right, a Dow rally of nearly 50 points! Huh?As a trader, we should be applauding
the bulls for pulling off a nice gain in what would appear to be a complete
contradiction in terms. By definition, bond yields fall on bad news and stocks
tend to follow suit. But as the saying goes, it ain't the news, but how the market
reacts to the news that matters. So, traders everywhere could be heard cheering
the bulls' big accomplishment on Tuesday. And putting all sarcasm aside, we will
admit that our heroes in horns are to be commended for their efforts.But as a
card carrying member of the There Has To Be a Reason Behind the Big Moves
Club, I'm a little befuddled. While I can give you several reasons why stocks may
move up on what would appear to be bad news, none of them are really great
explanations. For example, we've got the end-of-the quarter window dressing
rationale, which sometimes seems to be a factor in the market and sometimes
not. And while I could go on, the most likely excuse for stocks to rally on bad
news and falling bond yields (and rising gold prices) is the Tepper Trade.As you
may recall, big-time hedge fund manager David Tepper told CNBC recently that
stocks win whether the economy goes up or down. Mr. Tepper opined that if the
economy tanks from here, the Fed would launch QE II (to froth the market) …’
Economic Data -- Que Sera Sera: Dave's Daily ‘Thursday and Friday bring more
important data with GDP estimate, Jobless Claims (all estimates "locked" at
450K), Chicago PMI, Personal Income & Spending, U of Michigan Consumer
Sentiment, Construction Spending and the ISM Index. These, taken together,
should give investors plenty to think about. The current theme of both good and
bad data as good things will be tested. But, let's remember, Thursday marks the
end of the quarter while Friday's the start of a new month. With the former, expect
some window dressing where possible and the latter might mean who gives a rip.
As trading volume shrinks layoffs in the financial sector are, and will be the
result. Fearless heretic and analyst Meredith Whitney estimated yesterday 80K
Wall Street types will lose their jobs in 2011. ICI (Investment Company Institute)
has just noted domestic equity mutual funds saw a 21st sequential outflow of
$2.5 billion, bringing the total year-to-date to over $70 billion. Volume has told us
another thing; the only folks trading are HFTs and hedge funds. Some might
suggest a few banks with their POMO from heaven but how will we ever know?
There's no transparency from the most transparent....oh nevermind. Wednesday's
volume was especially light as tension builds before the economic news
onslaught. Breadth was mixed. ‘
Things are coming apart before our eyes Fred Cederholm | Do you feel this first
downturn of the 21st century is behind us? I sure don’t.
World gripped by ‘international currency war’ Guardian | The world is in the midst
of an “international currency war” according to Brazil’s finance minister as
governments force down the value of their currencies to boost their
struggling economies.
Dollar Trades Near Five-Month Low Bloomberg | The dollar traded at almost a
five-month low against the euro after U.S. home prices rose at a slower pace
in July, fueling speculation the Federal Reserve will ease monetary policy.
Dollar tumbles to record lows, gold hits record high The dollar sank against the
euro and hit a record low point against the Swiss franc on Wednesday while
gold struck a new all-time peak, as traders mulled possible US moves to
boost its ailing economy.
Communists living the American Dream Amid the raging financial crisis, many in
the US are left doubting the wisdom behind the American way of life. And in
one enclave in the US state of Virginia, an increasing number of people are
dropping the dollar and picking up a hammer and a sickle. RTs Priya Sridhar
reports from a commune that is adopting a revolutionary way of life.
Gold Prices Not In A Bubble – Deutsche Bank Until prices hit $2,000 an ounce, the
gold market is still “some way” from displaying the characteristics of a
bubble, according to major bank research note.
Gold Fluctuates in London After Advancing to a Record; Silver Reaches $22 Gold
fluctuated in London after climbing to a record for a fourth day on demand
for an alternative to a weakening dollar. Silver reached the highest price
since 1980.
Pentagon’s ‘Burn a Book Day’: War memoir destroyed as ’security threat’ The
Pentagon has ordered the destruction of almost ten thousand copies of
memoirs by a former intelligence officer involved in the Afghanistan
campaign. The Defence Department called the book a threat to America’s
national security.
European cities hit by anti-austerity protests Tens of thousands of protesters

from around Europe have been marching across Brussels in a protest
against spending cuts by some EU governments. Other protests against
austerity measures are being held in Greece, Italy, the Irish Republic and
Latvia.
Internet’s creator slams ‘blight’ of web disconnection laws Tim Berners-Lee, the
man credited with inventing the world wide web, warned Tuesday of the
“blight” of new laws being introduced across the globe allowing people to
be cut off from the Internet.
World gripped by ‘international currency war’ The world is in the midst of an

“international currency war” according to Brazil’s finance minister as
Who Really Runs the New World Order Exposed Alex Jones extends his remarks
on Glenn Beck, the co-opting of the Tea Party movement and who really
runs the New World Order in a follow-up video address to “Is Glenn Beck for
Real?” Despite what figures like Beck have portrayed, this global system is
not run by Marxist ideologues or Communist revolutionaries; those groups
and others are controlled by a psychopathic, offshore, corporate elite cabal
who have sophisticated control over most of the world’s resources, peoples
and territories.
‘Feds Radiating Americans’ Becomes Number 1 Google Trend On today’s Alex

Jones Show, Alex called for everyone to Google the phrase, “Feds Radiating
Americans” and the response was outstanding. Once again, the the term
given on the show reached the top spot on Google Trends. This is yet
another example of united action on the part of freedom-loving patriots.
American People To Corporate Media: We Don’t Trust Anything You Say A Gallup
poll has revealed that a record majority of Americans fundamentally do not
trust the mass media and believe it to be politically biased.
Iraqi Security Forces Target Journalists With Car Bombings, Shootings Reporters
Without Borders deplores a targeted attack on Alaa Mohsen, the host of the
programme “Liqa Sakhen” on state-run Al-Iraqiya television, who was badly
injured by a bomb placed underneath his car as he was about to leave his
home in the Baghdad suburb of Saydiya on the morning of 27 September to
go to work.
Feds Radiating Americans At Internal Checkpoints Federal authorities do not

concern themselves about the flood of illegal immigrants and drugs
crossing the border every day, they’re more worried about radiating
American truck drivers at internal checkpoints with mobile scanners that
shoot dangerous x-rays through both vehicles and passengers.
Terrorist Fearmongering About “Mumbai-Style Attacks” Is An Election Ploy The

terrorists are up to their old tricks again – using the threat of violence as a
psychological ploy to intimidate voters before an election. But these
terrorists don’t live in caves in central Asia, they head up federal agencies,
governments, and Hollywood production studios.
‘Feds Radiating Americans’ Becomes Number 1 Google Trend Matt Ryan | On
today’s Alex Jones Show, Alex called for everyone to Google the phrase,
“Feds Radiating Americans” and the response was outstanding.
Mission Creep: TSA to Implement “Secure Flight” On November 1 Kurt Nimmo |

“Secure Flight” may appear innocuous, but is designed to get citizens
accustomed to government officials micromanaging every aspect of their
daily lives, be it at the airport or at the local mall.
Who Really Runs the New World Order Exposed Alex Jones & Aaron Dykes |
Despite what figures like Beck have portrayed, this New World Order is run
by an offshore, corporate elite cabal with sophisticated control over most of
the world’s resources, peoples and territories.
UPDATE: Is Glenn Beck for Real? Alex Jones & Aaron Dykes | Glenn Beck, as a
national media figure, has never been consistent. He’s played many parts,
but what Glenn Beck has never done, until now, is come so close to telling
the truth.
Feds Radiating Americans At Internal Checkpoints Paul Joseph Watson | While

illegals and hardcore drugs flood into the country from across the border,
authorities target truck drivers in Atlanta.
Drudgereport: Paladino alleges Cuomo affair … former Kennedy wife Kerry backs
Cuomo … Kennedys officially extinct ...
Wobama Struggles to Reconnect With Voters … hoping they’ll believe his lies
again ...
MESSAGE: GOP lying to americans … look who’s talkin’ wobama … (wobama’s
such total b*** s***) ...
UPDATE: Obama, Biden, Kerry Lash Out at Electorate...
And she's (pelosi) as unpopular as BP... ...ethics pledge falters
Maine guv candidate: 'I'd tell Obama to go to hell'...
Fort Hood: Four soldiers 'killed themselves' in last week...
Gates’ Revelation: Military (nation) faces strains after decade(s) of war...
Troop Suicides On Pentagon's 'Emergency' List...
'We need to make clear ... the cancer is in Pakistan' (Washington Post) [ How
‘bout the reality that the cancer is in Washington and tel aviv! I mean, come on! …
This from a guy who’s failed presidency speaks volumes about his own inability
to govern. After all, wasn’t he elected based on campaign promises to end
perpetual war as geopolitical strategy, particularly in light of the reality of
america’s defacto bankruptcy and that ‘opposite effect / blowback thing’?
Wobama is so full of s*** as indeed they all are, all three branches of the failed,
corrupt u.s. government and those mini mini black / grey areas that purport to be
patriotic americentric while enriching themselves, only. Anti-americanism has
never been so real and globally popular.] The reason to create a secure, self-
governing Afghanistan, President Obama told his aides last year, was "so the
cancer doesn't spread there."
Pearlstein: Can business afford Jim DeMint? (Washington Post) [ At this point,
given the structural shift in the most negative sense, the real question is whether
the defacto bankrupt nation america can afford business, along with the costly
over-priced / over-valued / pervasively corrupt and incompetent three branches of
the u.s. government along with the corporate welfare programs, particularly
involving the military industrial complex. The answer, obvious of course, is no! ]
Senate Republicans block outsourcing bill (Washington Post) [ Riiiiight! That

election year, market-frothing ‘change of heart thing! That previous clintonian
democrat, bushee republican ‘NAFTA’ / transfer technology to China thing, etc.,
no longer in vogue for the sake of soundbites (didn’t Perot warn of this?). Do
they even have the slightest clue as to what they’re doing? After all, america’s
defacto bankrupt! ]
Economy may cause cable subscriptions to slide (Washington Post) [ Wow! If

that’s the only thing sliding in this depression they’d be breakin’ out the
bubbly!].
A bumpy ride for Southwest and AirTran (Washington Post) [ From personal
experience, Southwest is a well managed airline in every respect! ] Leaders
of the industry's other quickly consolidating carriers are suddenly faced with
a much bigger and more powerful low-cost rival. But the leader who has the
most to worry about may be Southwest CEO Gary Kelly. His company's
unique culture and business model will be tested like never before.
Household income plunged in 2009 for the second year in a row (Washington
Post) D.C., suburbs show disturbing increases in childhood poverty. Fewer
families earned over $100,000 a year and the ranks of the poor rose,
according to census statistics. This is nationwide, black and white,
transcending race as one would expect in a depression.
WEEK FED ACTION

July 22 -$8 billion
July 15 +$8.6 billion
July 8 2010 +$1 billion
July 1 2010 -$13 billion
June 24 2010 +$175 million
June 17 2010 +$12 billion
June 10 2010 -$4 billion
June 3 2010 +$2 billion
May 27 2010 -$16 billion
May 20 2010 +$14 billion
May 13 2010 +$10 billion
May 6 2010 -$4 billion
April 29 2010 -$1 billion
April 15 2010 +$31 billion
April 8 2010 +$420 million
April 1 2010 -$6 billion
You’ll note that the Fed ALWAYS made its largest capital contributions during
options expiration weeks. Heck it pumped $31 BILLION into the system in April
2010, just ONE MONTH after it claimed QE 1 ended!
However, since that time the Fed has pumped a total of over $65 billion into Wall
Street on options expiration weeks. On non-expiration weeks the Fed either
withdraws money or makes small money pumps.
This pattern finally ended in August 2010 when the Fed failed to pump the system
on options expiration week. But then again, why bother? The Fed was about to
announce its QE lite program in which it would use the interest on maturing
securities to purchase Treasuries from Wall Street Primary Dealers via its
Permanent Open Market Operations (POMO).
I realize that last sentence is a lot to take in. So let me explain how this new QE
Lite Program works before we continue.
During Treasury auctions there are 18 banks, called Primary Dealers, who are
given unprecedented access to US Debt (Treasuries) in terms of pricing and
control. These are the BIG BOYS of finance including firms like Goldman Sachs
(GS), JP Morgan (JPM), Bank of America (BAC), Credit Suisse (CS), and others.
During its QE 1 Program, the Fed bought over $1.0 trillion in securities from these
firms. Its new QE lite program consists of it using the interest and proceeds from
the securities in its portfolio that are maturing to buy Treasuries from the Primary
Dealers via Permanent Open Market Operations (POMO).
In simple terms, the POMO actions allow the Fed to pump money into Wall Street
(by buying Treasuries from the Primary Dealers) without DIRECTLY monetizing
Treasury debt (the Treasuries had already been issued). The Primary Dealers then
take this fresh capital from the Fed and plow into stocks, forcing the sort of ramp
job we saw last week on Friday. (chart)
All told, the Fed has bought $20 billion worth of Treasuries in this fashion, $11.15
of which it purchased last week alone. With this kind of weekly money pumping in
place, Bernanke and pals don’t need to continue their “behind the scenes” games
(like the options expiration week money pumps).
Or do they?
Unbeknownst to most investors, last week ( no-recession-helicopter) Ben (b.s. for

b*** s*** shalom) Bernanke (oj the juice man) pumped an additional $11.05
BILLION into the system ON TOP of the $11.15 pumped via the POMOs. In plain
terms, THE FED JUICED THE SYSTEM BY $20+ BILLION IN A SINGLE WEEK,
BRINGING ITS LIQUIDITY PUMPS RIGHT BACK QE 1 LEVELS.
If you want to know why stocks have rallied in the last month, this is THE reason.
The economy isn’t improving and the European Crisis isn’t over. Nothing has
improved. All that has happened is the Fed funneled money into the Primary
Dealers who ramped the market.
This is also the reason why the latest rally has almost entirely consisted of gap
ups: the Primary Dealers ramp the market and then the computer trading
programs take care of the rest. (chart)
In plain terms, the market is being juiced higher, plain and simple. There is no
fundamental reason for stocks to be rallying. Moreover, we have numerous signs
of a top forming (mutual fund cash levels, insider selling to buying ratios,
negative divergence, etc). Those who choose to buy into the farce of a rally are
going to get what’s coming to them. And when they do, it won’t be pretty.
Disclosure: None ]
Consumer confidence drops to lowest since Feb. (Washington Post)
A Candid Appraisal of the Recovery John Browne Over the last two weeks,
seemingly good economic news offered some shreds of optimism to a stock
market that was desperate for a pick-me-up.
The week before last, the National Bureau of Economic Research declared that
the US recession had ended back in June 2009. At the beginning of last week,
news came in that month-on-month retail sales had risen by 0.4 percent.
Combined with successful government debt auctions in the eurozone, increasing
expectations that Republicans will take back the House (thereby blunting the
leftward drift of Washington), and hopes that a new round of quantitative easing
will pump up growth, mainstream analysts are developing a feeling of near-
euphoria.
Although it hard to begrudge the punch drunk for grasping at a little hope,
investing is a dispassionate endeavor that calls for close and realistic analysis. In
that spirit, let's dig deeper into the recent 'good news.'
First, the single month's rise in retail sales was a blip on what has been a long-
term downtrend. Furthermore, retail sales in August typically get a large boost
from seasonal 'back to school' spending. This year, retail sales were boosted
further by temporary tax incentives and vendor discounts.
Second, the successful auction of debt from worrisome eurozone countries, like
Ireland, only served to further camouflage the ongoing risk of sovereign default
by these states. None of them have committed to a comprehensive program of
austerity and market liberalization - Ireland maintains a 'too big to fail' doctrine
while Greece is on the verge of riots from its so-far modest efforts at
privatization. None of the PIIGS would have had successful bond sales if
Germany hadn't been pressured into becoming a 'sovereign of last resort' for the
whole currency area.
Apart from health of the weakest nations, a more important issue is

understanding how sovereign debt is analyzed by investors in the first place.
Those who consider buying government debt have for many years relied on
backward-looking measurements such as debt-to-GDP to analyze the investment
quality.
But that's only half the picture, and oftentimes it's even less than that. It does not
include off-balance sheet items such as unfunded pensions, social security
payments, or health obligations. For the US, I estimate this total debt amounts to
some $134 trillion - nearly ten times the 'official' figure.
On a deeper level, using the public debt-to-GDP ratio to assess sovereign

solvency implies that governments have access to the entire annual production
of their economies. In reality, they have access only to that portion which is
taxable. As taxes increase, there are natural limits imposed by increasing
inefficiency and avoidance behaviors. Therefore, 'net GDP,' the portion available
to the government for debt service, is significantly smaller than the gross GDP of
the nation.
With real government debts, including off-balance sheet items, far larger than
officially recognized and net GDPs far smaller that top-line GDP, the solvency of
many sovereigns should be considered dubious at best.
For example, the debt-to-GDP ratio of the United States is currently 65 percent,
which puts the country towards the solvent end of the debt spectrum among
developed Western nations. However, the real debt-to-net GDP ratio is a
staggering 358 percent, making the US the most insolvent nation in the group,
behind even Greece!
In the interest of brevity, I will only touch on the fact that the above number is
actually still an underestimate. It does not account for the portion of gross GDP
claimed by state and municipal governments to service their debts. After all, all
levels of government tax the same base. So, the effective portion of GDP
available to the federal government is even smaller still.
The third problem with the late round of 'good news' is that while a GOP sweep of
House races looks likely, it is unlikely to make a large impact on policy. It is
doubtful that the small number of freshman GOP Representatives will be able to
win over their more mature, big government-minded colleagues. Any pending
GOP 'small government' revolution will be heavy on talk and short on
accomplishments.
It should come as no surprise that the Republicans' "Pledge to America" lacked

specific commitments for cost-cutting. Republicans are terrified of becoming the
party of austerity, and the next Republican President will want to avoid being
seen as 'Hoover 2.0'. Therefore, any structural changes will come slowly - and
perhaps too late.
Finally, whatever actions the Fed takes in the name of further stimulus will have
the same unintended consequences as all previous stimulus efforts. Long-term
sustainability will be sacrificed in favor of a short-term boom. Since World War II,
the underlying strength of the US economy has allowed the central bank to get
away with this strategy, as the economy simply outgrew the inefficiencies caused
by monetary manipulation. But what happens when we are in a period of secular
decline?
So we see that Wall Street is again playing the part of Pangloss. Unfortunately,
their purported inklings of a renewed rally in the US markets do not stand up to
candid appraisal.
Bad Data Rescues Stocks: Dave's Daily ‘Bad economic data (Consumer
Confidence 48.5 vs 53 consensus) and more worries from Europe regarding Irish
banks drove markets sharply lower early. But, then the Fed showed up with a
small POMO operation reminding bulls that bad data keeps the Fed as their
friend. The smokescreen for the day was deal-making. The new deal or theme
taking root in markets is good news is good and bad news is even better…’
Report From Europe: Ireland's Bonds in More Trouble
our monster debt.
This is an especially great opportunity to sell / take profits! There’s an old axiom
that remains as true today as ever; viz., ‘don’t look a gift horse in the mouth’, that
is of course unless you’re of the ‘buy and hold’ mentality. Specifically, if you
recall the recent market rally on the better than expected unemployment numbers
from the government, albeit false data based on estimates that of course were as
true as ‘bernie madoff is a reliable, trustworthy, seasoned professional with
whom to entrust your money for investment’. The unemployment numbers just
came in decidedly worse than expected (and in the ‘wrong direction’, that spin
accorded ‘down but not as bad as before’ b*** s*** ) yet the market has this day
rallied like no tomorrow with used home foreclosure / distressed sales the other
‘heralded’ good news. This is about keeping the suckers sucked in for now, and
window dressing for the month and the 3rd quarter which can be and is
manipulated, particularly with computerized (and high frequency) trades and
which commissions they’ll get again on the way down. There is nothing to
support these overbought stock prices, fundamentally or otherwise. These are
desperate criminals ‘at work’. Even wall street shill Buffett is saying we’re still in
a recession (depression) Buffett: We're Still in a Recession [ Wow! A moment of
lucidity from Buffet which belies his prior ‘rosy wall street shill talk’, but his
greater candor is welcomed nonetheless although the ‘d’ (for depression) word is
more appropriate and accurate.] Roche ‘Warren Buffett disagrees with the NBER.
He says we’re still in a recession and likely to remain in a recession for quite a
while. These comments are far more tempered than the ones that were published
last week. Of course, my favorite part in this clip is where he says the U.S.
government did the right thing in responding to the crisis. They certainly did the
right thing for Berkshire Hathaway (BRK.A) shareholders. Whether or not they did
the right thing for America is a whole other story…’ [ And, of course we now
know that it wasn’t the right thing for america … The question inevitably
becomes, ‘Who’s manipulating who, what, and why? After all, we know defacto
bankrupt america’s pervasively corrupt! ]

really is.

sustenance.

and 2012). ]
Dow 1000? Robert Prechter Thinks So
Marc Faber: The Fed Is Creating Dangerous Bubbles Around The World, And
Stocks Will Tank In October The original merchant of doom Marc Faber has
a good, wide-ranging interview with the Economic Times of India.
Dollar Trades Near Five-Month Low Before U.S. Housing, Sentiment Reports The
dollar traded at almost a five- month low against the euro after U.S. home
prices rose at a slower pace in July, fueling speculation the Federal Reserve
will ease monetary policy.
Get Ready For The Fixed Income Bloodbath Fixed income desks are going to be
subject to severe layoffs, according to a highly placed Wall Street insider
with information about the plans of his firm and the plans of rivals.
Prechter Reiterrates Call For Dow 1,000, Even As Surging Gold And Plunging
Dollar Leave Much Credibility To Be Desired One has to wonder by now just
what is so magical about the Dow 1,000 that Prechter has been so infatuated
with since time immemorial.
Things are coming apart before our eyes Fred Cederholm | Do you feel this first
downturn of the 21st century is behind us? I sure don’t.
World gripped by ‘international currency war’ Guardian | The world is in the midst
of an “international currency war” according to Brazil’s finance minister as
Dollar Trades Near Five-Month Low Bloomberg | The dollar traded at almost a
five-month low against the euro after U.S. home prices rose at a slower pace
in July, fueling speculation the Federal Reserve will ease monetary policy.
Another Record For Gold As Investors Forecast More Huge Gains Gold futures
have once again surged to a new record high, with experts across the board
forecasting that gold’s bull run has a long way to go.
Shut Down the Fed (Part II) All those hillsmen in Idaho, with their Colt 45s and
boxes of krugerrands, who sent furious emails to the Telegraph accusing me
of defending a hyperinflating establishment cabal were right all along. The
Fed is indeed out of control.
National / World
Concealed Carry Event Coincides With University of Texas Shooting

Infowars.com | Infowars.com has learned that an open carry event was
scheduled on the UT campus today.
Glenn Beck Channels Alex Jones to Sell Globalist Snake Oil Kurt Nimmo | Glenn
Beck is not a patriot, but he plays one on television.
New Cybersecurity Bill Gives Obama ‘Power To Shut Down Companies’ Paul
Joseph Watson | Businesses who don’t follow government orders would be
suspended for at least 90 days with no congressional oversight.
Healthcare Reform: A Huge Misdiagnosis Ron Paul | Central planning never
increases choices and quality or cuts costs as promised.
Amazing “Coincidence”: UT Shooting Cancels Pro-Gun Speech A shooting at the

University of Texas campus that was initially blamed on a lone nut took on a
political aspect after it emerged that the incident coincided with a speech by
second amendment expert John Lott about the right to concealed carry that
was due to take place tonight but has since been cancelled.
Big Sis Tries To Force Body Scanners On Other Countries Amidst Backlash
Amidst a global backlash against naked airport body scanners, Homeland
Security Secretary Janet Napolitano is attempting to corral 190 nations into
signing a binding agreement that will force them to adopt the increasingly
unpopular devices which have been slammed on both health and privacy
grounds.
CIA Strikes Intensify in Pakistan In an effort to foil a suspected terrorist plot

against European targets, the Central Intelligence Agency has ramped up
missile strikes against militants in Pakistan’s tribal regions, current and
former officials say.
Kim Jong-un appointed general in first official hint he will be next leader of North
Korea North Korea’s ailing dictator Kim Jong-il appointed his youngest son
a four-star general on Tuesday, giving his country the first official hint that
he will be their next leader.
Drugged soldier recorded describing the killing of Afghan civilians One of five
soldiers accused by the Army of involvement in the premeditated killings of
Afghan civilians is scheduled to appear before a military judge today — on
the same day ABC News aired tapes that show his confession to
investigators about his own involvement and the involvement of several
other soldiers in the slayings.
Drudgereport: Consumer confidence drops to lowest since Feb...
Bush aide: Economy 'Close to Destructive Tipping Point'...
CEOs' view of economy darkens...
Afghan President Hamid Karzai breaks down in tears over state of country...
CIA INTENSIFIES DRONE AIRSTRIKES WITHIN PAKISTAN...
GOLD NEW HIGH: $1311...
Murky waters for D.C.'s 'boat people' (Washington Post) [ Murky waters? Boat
people? Yeah, sounds like the third world defacto bankrupt america of present
and future. Nobel Prize winning economist Paul Krugman seems to think so!
our monster debt. Economists Herald New Great Depression The world is
according to a prominent economist who has added his voice to scores of others
now forecasting ongoing economic doom on a scale not seen since the 1930s.) ,
and my position and that of demographer Dent (This is a global depression. This
is a secular bear market in a global depression. The past up move was a
manipulated bull (s***) cycle in a secular bear market. This has been a typically
street churn and earn pass the hot potato scam / fraud as in prior crashes’. This
national decline, economic and otherwise, will not end until justice is served and
the wall street frauds et als are criminally prosecuted, jailed, fined, and
disgorgement imposed. Krugman: It's All Downhill From Here Cullen Roche
Love him or hate him Paul Krugman has been awfully right with regards to the
macro picture in the last few years. He’s one of the rare economists who had the
foresight to see the housing bubble and the likelihood of economic downturn that
would result from it. Krugman recently caused a stir when he said the US
outlook:


really is.

sustenance.

and 2012). ]
] Developers plan to unveil a revised master plan for a massive collection of

hotels, apartment buildings and ground-level restaurants and stores even as
the fate of more than a dozen businesses and hundreds of residents along
Water Street and Maine Avenue SW are being debated.
Treasury developing plan to recoup AIG investment (Washington Post) [ Sounds

like a plan! … fraught with fraud, or fraud with which it’s fraught; but a great
way to do that typical Washington ‘bribe / quid pro quo’ thing that’s done
‘wonders’ for pervasively corrupt, defacto bankrupt america. ]Federal
officials are finalizing a plan aimed at recouping the massive taxpayer
investment in American International Group and returning the bailed-out
insurance giant to financial independence, according to sources familiar
with the situation.
Connecticut, California join probe of Ally (Washington Post) [ Well, I’d be much
more impressed if they initiated a probe of more readily discernible criminal
offenses in violation of the RICO Act among other statutes and damaging
their respective states and citizens thereof. http://albertpeia.com
Frauds/Liars (sic-lawyers)Covering Up for Other Frauds/Liars (sic-lawyers). In
Productive Societies as China, Japan, etc., Fraudulent Liars (sic-lawyers) and
the Fraudulent u.s. System They're a Part of Are Unheard Of/Non-existent. List
of Files Regarding Filed Attorney Grievance Against Fraud coan et als Or
Here For A Clearer View Of Filed Grievance Complaint, Response, Exhibits,
and Related RICO Filings Note the Committee of Frauds/Liars (sic-lawyers).
his life. How Pathetic! http://albertpeia.com/fbiofficela91310 ] Attorneys
general in both states ordered Ally Financial's GMAC mortgage unit to freeze
all foreclosures within their borders, joining a growing list of states
investigating whether the firm and other lenders improperly kicked people out
of their homes. Justice: FBI improperly opened probes (Washington Post)
[ Well, I just hope they’re as zealous (in probing readily discernible crime)
with regard to my RICO matters and the corruption in the (judicial / legal)
process since, in the final analysis, it will have been the corruption within that
will have brought the nation down irrevocably and totally ] .
9-13-10
Dear Sir:
prevent viral attacks / infection and are without threat). I also include a copy of the DVD as
aforesaid 3 disks in a separate folder named ‘112208opocoan’)…
provides a civil remedy, including treble damages and attorney fees, as an incentive for
private prosecution of said claims probably owing to the fact that the USDOJ seems
somewhat overwhelmed and in need of such assistance given the seriousness and
prevalence of said violations of law which have a corrupting influence on the process, and
which corruption is pervasive). A grievance complaint against Coan was also filed
concurrently with the subject action and held in abeyance pending resolution of the action
which was illegally dismissed without any supporting law and in contravention of the
Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut.
The files below the horizontal rule are the referenced documents as filed. (Owing to the
damage to the financial interests of both the U.S. and the District of Congresswoman
Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act
probably would apply and I would absent resolution seek to refer the within to a firm with
expertise in that area of the law with which I am not familiar).
to FBI Under Penalty of Perjury at Their Request (5 pages) [
The correspondence I received from Congresswoman by way of email attachment


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) ******** (cell phone)
nefarious sense (
) ]:

# 3 Germany: 6,507,394
… ]


Hussman: Not Out of the Woods Yet Roche There are clear signs that the
recovery has started to fade and the debate over a double dip continues to rage.
The NBER thinks the recession is over, but John Hussman is concerned that just
as the last recession ends the next one is already beginning. Dr. Hussman says
we’re not out of the woods yet as the NBER’s own indicators appear to be
pointing to another downturn just as they announce the end of the previous one:
Below, I’ve combined the long-term Stock and Watson data with the
ECRI Weekly Leading Index growth rate to give a picture of how
fluctuations in these measures have correlated with past recessions
(shaded orange) identified by the NBER. Given the upward spike in
growth that we observed in mid-2009, the choice of a June 2009
turning point is consistent with historical precedent. The Committee
typically dates the beginning of a recovery at the point where the
growth rates of underlying measures of economic growth clearly
spike from negative to positive. What is of immediate concern
though, is the trajectory that growth rates have taken since then.
(chart) . Again, the graph presented here is as of June 30, 2010.
While we know the ECRI data has deteriorated further since June, we
won’t have GDP figures for a while yet. Given the data in hand, it’s
clear that past growth downturns of the same extent have often gone
on to become recessions. However, there are a few exceptions where
these growth rates dipped below zero and then recovered. If we had
good reason to expect positive economic tailwinds, we would be less
concerned about the present deterioration. Unfortunately, my
impression is that the bulk of the growth that we did observe coming
off of the June 2009 economic low was driven by a burst of stimulus
spending coupled with a variety of programs to pull economic
activity forward. My concern is that these synthetic factors are now
trailing off, with little intrinsic economic activity to carry a recovery
forward. Suffice it to say that we’re not yet out of the woods.
Of course, the NBER (and most economists and most market participants) won’t
acknowledge a new recession until long after it has become obvious. According
to the NBER’s own indicators it looks like the next recession could very well be in
its infancy. As always, I highly recommend Dr. Hussman’s full weekly letter which
can be found here. Source: Hussman Funds
My Weekly Market Forecast Graham Summers ‘Last week I forecast that we would
see a reversal in stocks. The market did indeed show signs of breaking down on
Wednesday and Thursday, however, the Fed’s juice managed to keep stocks
afloat and closing in the green for the week. (chart) All told, the Fed injected more
than $10 billion into the market directly via its three Permanent Open Market
Operations (POMO) pumps. However, Bailout Ben wasn’t content with mere open
market juicing, so he pumped another $10 billion into the system “behind the
scenes.” I’m going to address this activity in depth in Tuesday’s article, but for
now I simply wanted to stress that more than $20 billion in Fed money pumps hit
the market last week. This should clear up ANY questions as to why stocks are
holding up, let alone rallying. Another way of looking at this, is that the Fed is
trashing the US Dollar to prop up stocks. Indeed, the US currency has broken
down below both its 50- and its 200-DMAs. Even worse, it has broken critical
support at 80, which has served as a MAJOR line of importance over the last 20
years (the Dollar has only broken below this line twice: once during the 2008 lows
and during the 2009 QE-induced collapse). (chart) This breakdown could turn out
to be a bearish head-fake. However, if it is, the US Dollar needs to start rallying
hard soon. Indeed, we are nearing a “death” cross pattern here: when the 50-DMA
falls below the 200-DMA. These patterns typically are harbingers of further
weakness. Combined with the fact the Dollar is below 80 for only the third time in
20 years, this is a MAJOR warning that unless we get a reversal soon, the Dollar is in
VERY serious trouble. Indeed, we have the makings of a massive Head and
Shoulders pattern here. As I write, we’re sitting just on the neckline of this
pattern. Multiple closings below this line would confirm that the US Dollar is
headed lower with a downside target around 71 or so. This would very likely
mean stocks re-testing the April highs (1,220) and Gold exploding to $1,350 or
even higher. (chart) This is certainly one outcome, however, I don’t think it will
prove to be the case. Stocks are overbought and the US Dollar is oversold. At the
least we need to see a retrenchment or consolidation in the former and a bounce
in the latter. Big Picture: stocks have come up against MAJOR resistance at 1,150.
This is occurring right as the S&P 500 reaches an overbought RSI reading (70)
and on dwindling volume. (chart) Furthermore, stocks have risen to test the upper
trend-line of their trading channel dating back to early May 2010. This line, which
coincides with long-term resistance at 1,150, adds to the likelihood of a reversal
here. (chart) The first line of support is 1,123 or so. We actually fell to test this last
week, but Friday’s POMO-induced ramp job stopped the breakdown. So for now
overhead resistance is 1,150 and support is 1,123 or so. A break above the one
sets the stage for a rally to 1,170 or even 1,180… a breakdown below the other
(1,123) and the next real line of support is 1,100 then 1,080. We have POMOs this
week on Tuesday and Thursday. In light of this, I think we might see a final
impulse push in stocks above 1,150. However, this effort will fail and we’ll see a
retrenchment back to 1,123 or so. And if we take out support a 1,123 on a closing
basis then the rally is likely over and we’re heading back down in a major way.
When that happens selling pressure should pick up INTENSELY and stocks
should absolutely collapse. This rally has occurred on nothing but fumes and
short-covering. The only thing holding back the sellers is the Fed’s OBVIOUS
intervention. But at some point, even this will prove irrelevant just as it did in
2008. Disclosure: None’
Brace Yourselves For Disappointing Quarterly Earnings Harding Nucor's Daniel

DiMicco is one of many CEOs with unpleasant news about third-quarter earnings
With only a few more days to the end of the quarter the market’s attention will
turn ahead to the third quarter earnings reporting season, which traditionally
begins with Alcoa’s earnings, due out on October 7. In what has appeared to be a
conundrum for several months, Wall Street has been raising its earnings
estimates for the third quarter while at the same time economists and even the
Federal Reserve have been bringing down their estimates of economic growth
quite dramatically. While we will have to wait awhile to see how those seemingly
opposite outlooks actually reconcile, the third quarter earnings “warning” period
is already underway and seems to be providing clues. Typically, only 20% to 25%
of companies pre-announce results, and according to Thomson Reuters, so far
112 of the 500 companies in the S&P 500 have already issued pre-
announcements. Of those, only 34 have said their third-quarter earnings will beat
Wall Street’s estimates, while 78 have warned they will not. That 2.3 to 1 ratio is
running considerably more negative than the second quarter earnings warning
period when the ratio of positive and negative preannouncements was 1 to 1.
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Confused and Conflicted Markets Nyaradi “If you’re not confused, you’re not
paying attention.” -- Tom Peters Certainly, management guru Tom Peters’ quote
could apply to last week’s market action as we saw significant moves in both directions
only to end up at about where we started the week when the markets closed on Friday.
The markets do seem confused and conflicted as we see gold, bonds and stocks all
rising in unison. One or more of these markets has gotten it wrong and sooner or
later we’re going to find out which one it is. Sooner could be as soon as this week
with significant economic reports coming our way. Looking At My Screens As
always, the chart tells the story: chart courtesy of StockCharts.com In this chart of the
S&P 500 we see RSI at overbought levels and if you look back to early August and
early April, you’ll find similar levels soon followed by significant declines. In “normal”
market conditions you don’t see RSI at extreme overbought/oversold levels as often as
we have lately, but typically, this is a very reliable indicator when these situations occur.
Resistance marked by the horizontal red line is at the 1150 level and a break above
here would indicate higher prices ahead. In the bottom display, the Full Stochastic is on
a “sell” signal and in Overbought territory, and while this can be a choppy indicator,
looking back to April, June and August, we can see similar levels followed by significant
declines. To make matters even more interesting, one needs to consider these
tantalizing facts:
• Dow Theory, the oldest technical trading program in use today, will go on a “buy”
signal when the Transports break the August high of 4516.35. Friday’s close was
4515.01, just one point away from this significant line in the sand.
• Seasonality points to the fact that many significant stock market declines have
occurred after the autumn equinox and in the month of October. In fact over the
last 13 years, there have been 11 significant declines during this time frame for a
probability of 85%.
• Three significant crashes have occurred in the month of October; October 29,
1929, October 19, 1987 and “black week” starting on October 6, 2008 during
which the Dow lost 18% or 1874 points in five trading days.
• The AAII Investor Sentiment Index is at 45% bullishness which is similar to levels
seen prior to several major market corrections.
The View from 35,000 Feet

On a fundamental level, the news remained dismal last week with weekly
unemployment rising and Rite Aid (RAD) and Advanced Micro Devices (AMD) not
reaching earnings expectations. The Senate postponed voting on extending the “Bush
Tax Cuts” until after the election which adds uncertainty to the picture and Ireland
slipped into a double dip recession with a contraction in its 2nd Quarter GDP. Existing
home prices declined in July by -0.5% and the FOMC said it stands ready with more
quantitative easing, effectively telegraphing a move in that direction at their next
meeting. August Durable goods orders declined -1.3% from the previous +0.7% and
August New Home sales rose, although this was the second worst report on record and
so offers small comfort to the beleaguered real estate market. But stocks rallied on
Friday on the hope of the “Bernanke Put” which says that the Fed will not let asset
prices decline even if it means trashing the U.S. dollar for the rest of our lifetimes. That
possibility, of course, is why gold is rallying through the psychologically important $1300
level. While a record, gold still stands far below its all time inflation adjusted high of
$2318 and so could still have lots of room left to run.
Household net worth declined $1.5 Trillion in the 2nd Quarter and now stands 15%
below its 2006 peak.
What It All Means
It’s now the Federal Reserve and the central banks of the world marshaled against a
growing tide of deflation and economic deceleration. The record of success of
quantitative easing is spotty at best and so we can only wait to find out if “things are
different this time.”
The Week Ahead
As I mentioned at the outset, today’s markets are conflicted and confused, however, it’s
likely we’ll soon gain some clarity with significant economic reports coming at us all
week.
Pay particular attention to the Q2 GDP revision and Chicago PMI on Thursday and the
blizzard of reports on Friday that include income, spending, consumer sentiment,
construction spending and the all important ISM, Institute of Supply Manufacturing
September report.
These data points should be significant enough to push markets higher or lower in a
meaningful way and so by next weekend the way forward should be in sharper focus.
Wall Street Sector Selector remains in the “Red Flag” mode, expecting lower prices
ahead.
Economic Reports:
Tuesday:
0900: July Case/Shiller Home Index
1000: September Consumer Confidence
Thursday:
0830: Q2 GDP Revision
0830: Initial Unemployment Claims, Continuing Unemployment Claims
0945: September Chicago PMI
Friday:
0830: August Personal Income
0830: August Personal Spending
0955: September University of Michigan Consumer Sentiment Final Report
1000: August Construction Spending
1000: September ISM
1400: September Car/Truck Sales
Sector Spotlight:
Leaders: Bonds, Thailand, Peru
Laggards: Regional Banks, Real Estate, Financial Services
Disclosure: SEF, SH, VXX, SPY Put Option
This is still an especially great opportunity to sell / take profits! There’s an old
axiom that remains as true today as ever; viz., ‘don’t look a gift horse in the
mouth’, that is of course unless you’re of the ‘buy and hold’ mentality.
Specifically, if you recall the recent market rally on the better than expected
unemployment numbers from the government, albeit false data based on
estimates that of course were as true as ‘bernie madoff is a reliable, trustworthy,
seasoned professional with whom to entrust your money for investment’. The
unemployment numbers just came in decidedly worse than expected (and in the
‘wrong direction’, that spin accorded ‘down but not as bad as before’ b*** s*** )
yet the market has this day rallied like no tomorrow with used home foreclosure /
distressed sales the other ‘heralded’ good news. This is about keeping the
suckers sucked in for now, and window dressing for the month and the 3rd
quarter which can be and is manipulated, particularly with computerized (and
high frequency) trades and which commissions they’ll get again on the way
down. There is nothing to support these overbought stock prices, fundamentally
or otherwise. These are desperate criminals ‘at work’. Even wall street shill
Buffett is saying we’re still in a recession (depression) Buffett: We're Still in a
Recession [ Wow! A moment of lucidity from Buffet which belies his prior ‘rosy
wall street shill talk’, but his greater candor is welcomed nonetheless although
the ‘d’ (for depression) word is more appropriate and accurate.] Roche ‘Warren
Buffett disagrees with the NBER. He says we’re still in a recession and likely to
remain in a recession for quite a while. These comments are far more tempered
than the ones that were published last week. Of course, my favorite part in this
clip is where he says the U.S. government did the right thing in responding to the
shareholders. Whether or not they did the right thing for America is a whole other
story…’ [ And, of course we now know that it wasn’t the right thing for america …
The question inevitably becomes, ‘Who’s manipulating who, what, and why? After
all, we know defacto bankrupt america’s pervasively corrupt! ]
Credit Collapse and the Shadow Banking System Ellen Brown | What went wrong
in September 2008 was not that the existing Basel II capital requirements
were too low but that banks found a way around the rules.
Credit Unions Bailed Out Wall Street Journal | Friday’s moves include the seizure
of three wholesale credit unions, plus an unusual plan by government
officials to manage $50 billion of troubled assets inherited from failed
institutions.
US Is ‘Practically Owned’ by China: Analyst The US supremacy as the top world

economy will end sooner than many people believe, so gold is a better
investment than the dollar despite it hitting a new record, Tom Winnifrith,
CEO at financial services firm New Rivington Street Holdings, told
CNBC.com Monday.
Obama’s Internet Wiretap Move: Just One Small Facet Of Total Domination
Project Steve Watson | Experts warn that Internet is being centralized under
government control.
It’s the Dollar, Stupid Kurt Nimmo | For the sixth day in a row, the price of gold has
skyrocketed.
Stuxnet False Flag Launched For Web Takeover Paul Joseph Watson | False flag to
rush passage of draconian cybersecurity legislation?
Banksters Inflate Speculative Food Bubble, U.N. Offers Global Governance

Solution Eric Blair | Never let a good crisis go to waste.
European Central Banks Halt Gold Sales Europe’s central banks have all but
halted sales of their gold reserves, ending a run of large disposals each year
for more than a decade.
‘Euro is nonsense, Greek bailout illegal’ A currency expert protesting against
Greece’s bailout says the bailout mechanism violates the provisions of the
Treaty on European Union, and it may be a better option to stop the euro
experiment instead.
Central Banks No Longer Selling Gold (Duh Factor: 10/10) Something funny (and
quite revolutionary) happened during the CBGA’s (Central Bank Gold
Agreement) year ending this Sunday – the group of 15 signatory banks sold
a mere 6.2 tonnes of gold, a massive 96% decline from the year earlier,
according to provisional data.
On the Secret Committee to Save the Euro, a Dangerous Divide Two months after
Lehman Brothers collapsed in the fall of 2008, a small group of European leaders
set up a secret task force—one so secret that they dubbed it “the group that
doesn’t exist.”
Credit Unions Bailed Out Two years after the peak of the financial crisis, the
federal government swooped in to stabilize a crucial part of the credit-union
sector battered by losses on subprime mortgages.
Obama Stimulus Made Economic Crisis Worse, `Black Swan’ Author Taleb Says
U.S. President Barack Obama and his administration weakened the
country’s economy by seeking to foster growth instead of paying down the
federal debt, said Nassim Nicholas Taleb, author of “The Black Swan.”
David Rosenberg: Forget Gold $1300, It’s Going To $3000 It may be overbought
on a near-term technical basis, but gold — now on the precipice of breaking
above $1,300/oz — is likely to remain in this secular uptrend for quite a while
longer. We’re talking years. We’re still talking $3,000/oz.
19 Facts About The Deindustrialization Of America That Will Blow Your Mind The
United States is rapidly becoming the very first “post-industrial” nation on
the globe. All great economic empires eventually become fat and lazy and
squander the great wealth that their forefathers have left them, but the pace
at which America is accomplishing this is absolutely amazing.
Downhill With the GOP New York Times ‘Once upon a time, a Latin American
political party promised to help motorists save money on gasoline. How? By
building highways that ran only downhill.’
Paul Krugman
’I’ve always liked that story, but the truth is that the party received hardly any
votes. And that means that the joke is really on us. For these days one of
America’s two great political parties routinely makes equally nonsensical
promises. Never mind the war on terror, the party’s main concern seems to be the
war on arithmetic. And this party has a better than even chance of retaking at
least one house of Congress this November.
Banana republic, here we come.
On Thursday, House Republicans released their “Pledge to America,” supposedly
outlining their policy agenda. In essence, what they say is, “Deficits are a terrible
thing. Let’s make them much bigger.” The document repeatedly condemns
federal debt — 16 times, by my count. But the main substantive policy proposal is
to make the Bush tax cuts permanent, which independent estimates say would
add about $3.7 trillion to the debt over the next decade — about $700 billion more
than the Obama administration’s tax proposals…’
National / World
‘US, Mossad played roles in 9/11 event’ Following the Iranian president’s doubts
on the 9/11 event, a top military adviser to the Leader of the Islamic
Revolution says the CIA and Mossad were involved in the attacks.
9/11: Where Are All The Whistleblowers? A common tactic used to debunk
questions surrounding the official 9/11 story is to claim that if there was
inside involvement in the plot, whistleblowers would have gone public and
exposed the conspiracy.
Obama’s Internet Wiretap Move: Just One Small Facet Of Total Domination
Project The Obama administration is drafting legislation that will see all
internet providers and other online communication services, including email
clients and social networks, be forced to allow the intelligence agencies
unfettered backdoor access.
New Poll Confirms Massive Re-Election Crisis For Obama The midterms aren’t
even here yet, but already the story is quickly turning to 2012, and whether
Obama can win re-election.
Gold Could ‘Easily’ Exceed $1,500: Top Gold Miner Barrick Gold, the world’s
number one miner of the precious metal, said on Monday gold prices could
“easily” outperform recent record highs to rise above $1,500 an ounce in the
next year.
Help Us Take the Infowar to the Next Level Millions of people are now awake and
acutely aware of the private central mega-bank plan to meltdown the global
economy and pitch humanity into a condition of groveling serfdom under
the scientific control of a one-world government with its high-tech police
state.
Iran struggling to contain computer virus (Washington Post) Iran suspects that a
foreign organization or nation designed the "Stuxnet" computer worm.
[ Look westward (plus israel) , but not homeward, Angel … Riiiiight! Riiiiight!
Riiiiight! Stuxnet False Flag Launched For Web Takeover Israel and the
United States have emerged as the prime suspects behind the Stuxnet worm
attack, which has infected the Iranian nuclear plant at Bushehr, following the
discovery that a “wealthy group or nation” must have been responsible for
the malware assault. Drudgereport: WORM HITS IRAN NUKE PLANT...
...new versions of virus spreading Pentagon silent... ]
Sordid Details About Killings of 3 Civilians New York Times JOINT BASE LEWIS-
MCCHORD, Wash. - An American soldier accused of killing three Afghan
civilians was under multiple prescription medications at the time of the
killings and serving in a unit in which the use of hashish and other drugs ...
Cpl. Jeremy Morlock's chilling description of how US soldiers killed Afghan
... New York Daily News Soldiers Charged in Afghan Thrill Kills Blame
'Crazy' Sergeant Calvin Gibbs ABC News
Army censors photos of Afghan corpses in ‘kill-for-sport’ trial Evidently worried

about a repeat of the anger aimed at US forces over photos of torture at Abu
Ghraib prison, the US military is restricting access to photos of Afghan corpses
in the “kill-for-sport” trial of five US soldiers.
Will Stuxnet Malware Be Used In False Flag Attack? Iran has admitted today that
Stuxnet malware has infected its industrial computer system.
Intelligence Report Envisions “Designing Humans With Unique Abilities” Under

Global Governance Regime Recently a document was disclosed by the
grace of the Freedom of Information Act entitled Global Governance 2025: At
a Critical Juncture.
Rothschild and CIA Publications Attack “Constitution-worshipers” The editors of

the Economist have declared constitutionalists mentally ill. “Indeed, there is
something infantile in the belief of the constitution-worshipers that the
complex political arguments of today can be settled by simple fidelity to a
document written in the 18th century,” the editors wrote on September 23.
“When history is turned into scripture and men into deities, truth is the
victim.”
Obama health care reform imposes 3.8% tax on all income from home sales and
home rental income The news about Obama’s health care reform just keeps
getting worse — and we only find these things long after the bill has passed,
of course.
GM food battle moves to fish as super-salmon nears US approval Buried in a
prospectus inviting investors to buy shares in a fledgling biotech company
is an arresting claim attributed to the UN’s Food and Agriculture
Organisation.
It Is Official: The US Is a Police State “Violent extremism” is one of those

undefined police state terms that will mean whatever the government wants it to
mean. In this morning’s FBI’s foray into the homes of American citizens of
conscience, it means antiwar activists, whose activities are equated with “the
material support of terrorism,” just as conservatives equated Vietnam era anti-
war protesters with giving material support to communism.
Drudgereport: KRUGMAN: BRING ON THE DEFAULTS...

Banks Keep Failing, No End in Sight...
PILOTS SHOCK CLAIM: Aliens have deactivated nuke missiles...
Confession Video: US Soldier Describes Thrill Kill of Innocent Afghans...
UN to appoint space ambassador to greet aliens...
Lawmakers question Fannie Mae on use of 'foreclosure mills' (Washington Post) [

Methinks they probably underestimate the magnitude of the ‘undertaking’. If
they were really serious, they’d bring in their big gun, to confuse and throw
off balance the questionees through the alice-in-wonderland surreal scene
created by his mammalian rodent-like presence (yet he loves facetime, but
that $12 billion in $100 dollar bills flown into Iraq is still missing) of that
incompetent in the semblance of some beaver-toothed woodland creature
as, ie., hedgehog, gopher, etc., viz., henry waxman of, yeah dudes, California
fame (no tobacco smoking, just marijuana (actually, even more carcinogenic
than tobacco and still, to deny the criminals/dealers the profit should be
decriminalized if not legalized and taxed – and, no Sheriff Baca, pot’s not a
gateway drug but a statistical correlation of that along with other drug use
probably exists- , etc.) amidst characters that would rival the famed mad tea
party, mad-hatters all. ]
GOP targets federal workers' pay (Washington Post) Issue becomes midterm
flash point in wake of high unemployment, stagnant private-sector wages. Poll:
Are federal government salaries too high? [ The obviousness of the answer to
this question brings to mind such rhetorical queries as ‘do bears s*** in the
woods’ and ‘is the Pope Catholic’, etc.. Of course, unequivocally responding in
the affirmative does not do justice either to the obvious response or to the
preposterousness of the sense of importance attached to these so-called
employees who have to be considered the most over-paid, incompetent, and
most cases corrupt (all 3 branches of the u.s. government included, along with
the fed, etc.) and lazy employees anywhere, anytime. Indeed, given the damage
they’ve done, they should be paying the taxpayers! ]
Pearlstein: It may be time to get back into stocks (Washington Post) [ Wow! With
all the documented criminality, manipulation, computerized high-frquency
programmed trades and fundamentals that make each uptick a walk through
Alice’s Wonderland, one may only scratch their head and ask of Mr. Pearlstein,
will you be the one left holding the hot potato in musical-chairs-like fashion and
hence, making ‘roughly wrong or precisely wrong’ distinctions without a
difference. There is nothing underpinning this overbought / overvalued stock
market but hot air, outright lies / fraud, and a déjà vu scenario that once again as
consistent with George Santayana’s admonition ("Those who cannot remember
the past are condemned to repeat it.") has eluded the masses (wall streets a**es).]
Stocks reignite a rally as economic woes fade (Washington Post) [Reitmeister

and Slusiewicz (infra) … It is sheer folly ‘to believe that the negative, but less
bad durable goods order number and the second worst ever, but still
improved from July’s all time low, new home sales drove the markets up 2%
on Friday…’ ]Stocks rose sharply on Friday, giving the market its fourth
straight week of gains.
Obama reaches out to Iran with multiple messages (Washington Post) [ This is
closer to the correct approach, conciliatory, especially in light of israel’s
summarily and haughtily dismissing even the suggestion of or adherence to the
Non-Proliferation Treaty as not in israel’s interest, the war crimes, violation of u.n.
resolutions, flotilla murders, sinking of uss liberty/sailor murders, etc.. However,
truth be told, I was dismayed and somewhat disheartened by Mahmoud
Ahmadinejad’s confusion ( evincing a lack of understanding ) and hope the same
a slip of tongue and correct him as follows: ‘9-11 was that ‘pearl harbor event’
heralded and sought by the neo-cons (don’t forget, there were orders for NORAD
to stand down that day, symmetrical implosion, 9-11 truth, etc.) that facilitated a
huge abrogation of rights (ie., Patriot Act, etc.), a diversion of funds to the military
industrial complex among other lunatics, ie., cia, nsa, etc., but was not intended
to nor did it help the u.s. economy; but helping the militant zionist israeli regime
was indeed a goal and the cheers of the mossad agents on the banks of the
Hudson in Weehawken, n.j. viewing the burning towers are testament to the truth
of that part of his statement. ]
The Bulls Are Looking Tired by John Nyaradi ‘Today's Indicators:
• Red Flag: We Expect Lower Prices Ahead

• Daily Technical Sentiment Indicators: Optimistic (Bearish)
• Short Term Market Condition: Overbought (short term bearish)
• Short Term Trend: Down
• Medium Term Trend: Down
• Long Term Trend: Down
Negative action in the U.S. markets and around the world yesterday left me with
the distinct impression that the bulls are getting tired.
On a fundamental basis, the bad news was headlined by that pesky
unemployment problem just won’t go away with a rise in weekly claims
yesterday, while on the corporate front, Rite Aid (RAD) and Advanced Micro
Devices (AMD) got whacked for not meeting earnings expectations and
Blockbuster (BBI) filed for bankruptcy.
The Senate decided they didn’t want to deal with the soon to expire “Bush Tax
Cuts” until after the election which inserts more than a hint of uncertainty as well
as a “ticking clock” into this all important situation.
Overseas storm clouds continued gathering (yet again) as Ireland is in a
confirmed double dip with its 2nd Quarter GDP contracting while Germany’s
growth slowed more than expected.
Finally, battle scarred veteran Paul Volcker summed it all up by saying that “the
financial system is broken” and that it is “so difficult to get out of this recession
because of the basic disequilibrium in the real economy.” (Mr. Volcker obviously
doesn’t watch financial television.)
On the technical front, the S&P sliced right back down through the 1130-1135
level that had provided such strong resistance and now was supposed to be
support and thus broke the upwards trend line in place since the beginning of the
early September rally.
Yesterday’s close at 1124 leaves the index 8 points above its 200 Day Moving
Average, the widely accepted demarcation line of bull and bear markets.
Internals continue to weaken in terms of breadth, Advance/Decline line, and
Up/Down Volume, all indicating lack of strength in the upwards direction.
Today we get Durable Goods and New Home Sales but looming ever larger next
week are some huge reports that we’ll discuss in detail on the weekend report.
For today, Wall Street Sector Selector remains in the “Red Flag” mode, expecting
lower prices ahead.
Disclosure: SH, SEF, EFZ, VXX, SPY Put Option’
This is an especially great opportunity to sell / take profits! There’s an old axiom
that remains as true today as ever; viz., ‘don’t look a gift horse in the mouth’, that
is of course unless you’re of the ‘buy and hold’ mentality. Specifically, if you
recall the recent market rally on the better than expected unemployment numbers
from the government, albeit false data based on estimates that of course were as
true as ‘bernie madoff is a reliable, trustworthy, seasoned professional with
whom to entrust your money for investment’. The unemployment numbers just
came in decidedly worse than expected (and in the ‘wrong direction’, that spin
accorded ‘down but not as bad as before’ b*** s*** ) yet the market has this day
rallied like no tomorrow with used home foreclosure sales the other ‘heralded’
good news. This is about keeping the suckers sucked in for now, and window
dressing for the month and the 3rd quarter which can be and is manipulated,
particularly with computerized (and high frequency) trades and which
commissions they’ll get again on the way down. There is nothing to support
these overbought stock prices, fundamentally or otherwise. These are desperate
criminals ‘at work’. Even wall street shill Buffett is saying we’re still in a recession
(depression) Buffett: We're Still in a Recession [ Wow! A moment of lucidity from
Buffet which belies his prior ‘rosy wall street shill talk’, but his greater candor is
welcomed nonetheless although the ‘d’ (for depression) word is more appropriate
and accurate.] Roche ‘Warren Buffett disagrees with the NBER. He says we’re
still in a recession and likely to remain in a recession for quite a while. These
comments are far more tempered than the ones that were published last week. Of
course, my favorite part in this clip is where he says the U.S. government did the
right thing in responding to the crisis. They certainly did the right thing for
Berkshire Hathaway (BRK.A) shareholders. Whether or not they did the right
thing for America is a whole other story…’ [ And, of course we now know that it
wasn’t the right thing for america … The question inevitably becomes, ‘Who’s
manipulating who, what, and why? After all, we know defacto bankrupt america’s
pervasively corrupt! ] … Then of course there’s been the full-moon-effect which
enhances the lunacy already typical of the frauds on wall street.


really is.

sustenance.

and 2012). ]
Examining the Current Market: No Fear Slusiewicz ‘…On Friday 98% of the S&P
500 companies were up. Generally fast run ups like the one we’ve just gone
through, followed by exponential blow offs like what we witnessed on Friday
causes me to take a more cautious point of view. It seems that the Fed is
attempting to juice the markets with their Permanent Open Market Operations.
This week alone the Federal Reserve purchased $11.15 Billion worth of various
US Treasury securities from the seven primary banks. What the banks did what
that immediate boatload of cash is unknown, but one would suspect that a
portion of those founds found its way into the stock market. The alternative is to
believe that the negative, but less bad durable goods order number and the
second worst ever, but still improved from July’s all time low, new home sales
drove the markets up 2% on Friday…’
Fridays Rally Makes No Sense at All Reitmeister ‘Thursday Reity Says: “For now,
let’s just assume a healthy little pullback is in store and we’ll take the rest as it
comes.“
Friday Reity enjoys foot in mouth sandwich for lunch.Why did the market explode
higher on Friday? Maybe because it often does the exact opposite of what makes
sense.Yes, you might read articles that say the Durable Goods report was the
reason for the market to roar higher. Hey folks, it wasn’t that good, or durable, of
a report to make investors feel like our economy is in great shape.
Some other experts may point out that this is a short covering rally. Meaning the
hedge funds and traders are taking their money out of recent shorts that are now
going awry and that creates additionally buying pressure that moves up the
market in the short run. Perhaps that has some validity.And some other experts
will talk about how we have gone above key technical levels that are bullish
indicators. (Hey, weren’t these same technicians boo-hooing about the
Hindenburg Cross just a few weeks ago and how that spelled doom for the
market?)
Add it all up and we see why investing is so tricky. And why it’s hard to be 100%
bullish or 100% bearish sometimes. The key is to strike a good balance between
the possibilities of what might happen. Meaning that when you invest you have to
realize there are good odds you can be wrong. So best to hedge your bets a little
to realize that the other side of the argument may have some credence.
My Two Cents
(During the day I read many other investment articles of interest. Here are links to
some new ones with my 2 cents added underneath).
Most (And Least) Valuable Global Brand NamesWhat's funny is that there is very
little correlation between a highly respected brand and share price appreciation.
Probably because most of these brands are former growth stories that are now
much larger and the PE keeps getting compacted to get in line with current
growth expectations. Certainly true for MSFT over the last several years. And for
GOOG's underperformance this year (by the way, I think that move is way
overdone and time to buy GOOG which is now a nice large cap GARP stock).
Goldman's 10 Stocks for Dividend Growth
Is this the best set of 10 dividend yielding stocks? Probably not.
The more important issue is that probably any combination of 10 high yielding
stocks will outperform the low yielding 10 year Treasury over that 10 year stretch.
Warren Buffett: The Recession Is Not Over
Its a recognition that corporations can quickly cut costs and improve profitability
making it seem like "alls well". However, John & Joan Q. Public are the "cost that
gets cut" and for them the recession is alive and kicking.
News for bank failures september 24, 2010 Regulators close banks in Florida,
Washington Ryan Holeywell | September 24, 2010 8:59 PM Regulators closed
banks in Florida and Washington Friday night, bringing the total number of bank
failures to 127 ... Bank Failure Friday - September 24, 2010 - Happy Failure Friday
Everyone! With the approach of the election season, Barry and his "crack"
financial team (those who haven't announced ... FDIC: Federal Deposit Insurance
Corporation Bank Closing Information - September 24, 2010 ... Complete Failed
Bank List · Failed Financial Institution Contact Search · Bank Failures in Brief ...
Housing and Jobs and Leading Economic Indicators...Oh My!
European Debt Worries Resurface
Buffett to taxpayers: Get over your anger Bloomberg News | Au contraire -

‘Taxpayer anger against Obama and Congress …’ is appropriate; after all,
it’s your money!
Jobless Claims Up 1st Time in 5 Weeks Zacks | Initial Claims for Unemployment
Insurance climbed by 12,000 last week to 465,000. That is the first increase
in five weeks.
New U.S. Home Sales Hold at Second-Lowest Level Ever Purchases were
unchanged at a 288,000 annual pace, matching July as the second-lowest in
data going back to 1963, figures from the Commerce Department showed
today in Washington. The median price fell to the lowest level in more than
six years.
Gold Climbs to $1,300 on Dollar Concern; Silver at 30-Year High Gold futures rose
to a record $1,300 an ounce in New York as investors sought a protection of
wealth and an alternative to a weakening dollar. Bullion traded at an all-time
in London and silver reached the highest price since 1980.
Lauderdale man’s home sold out from under him in foreclosure mistake When
Jason Grodensky bought his modest Fort Lauderdale home in December, he
paid cash. But seven months later, he was surprised to learn that Bank of
America had foreclosed on the house, even though Grodensky did not have
a mortgage.
BOJ Intervenes For Second Time In A Week, Fails The half-life of central bank
interventions is getting shorter and shorter.
Look Out Below! Harding ‘…And at a time when last week’s weekly AAII investor
sentiment poll showed 50.9% bullish? That’s the highest level of bullishness and
complacency since it reached 54.6% bullish in October, 2007 near the October,
2007 top of the 2003-2007 bull market. The other higher reading was 53.3% bullish
on May 1, 2008, as the market ended a bear market rally and plunged into its
unfavorable season leg down of 2008. Other readings not quite as high, but at
interesting times: The poll reached 49.2% bullish just prior to the Jan/Feb
correction this year, and 48.5% bullish at the April top this year …’
Nation / World
Feds Expand War On Terror, Raid Communist Antiwar Activists Kurt Nimmo | It
will not be long before the government raids members of the patriot
movement.
There Must Be Something More Daniel Taylor | Take a step back and look at the
big picture.
Gold Breaks Psychological Barrier Kurt Nimmo | Gold has continued its
astronomical ascent, reaching a new record-breaking high of $1,300 an
ounce today.
Establishment Feigns Outrage At Ahmadinejad’s 9/11 Rant Paul Joseph Watson |

Neo-Cons still embrace the official explanation behind the event that tripled
the size of government and led to the feds targeting conservative Americans
as domestic terrorists.
Killing Off the Small Farm: Alex Jones Talks with Judith McGeary Infowars.com |
Alex talks with Judith McGeary, the Executive Director of FARFA, about the
government plan to replace small family farms with large corporate factory
farms.
Obamacare is even worse than critics thought Washington Examiner | Obamacare

won’t decrease health care costs for the government.
The Choice Between Two Americas Scott Lazarowitz | The current America is one
of Keynesian, socialist centralized economic social and defense planning, in
which the government directs everything by force of gunpoint.
Why America Cannot Win in Afghanistan Infowars.com | An interview with Hamid

Gul, the former director of Pakistan’s ISI.
Why an Underwear Bomber Trial with an Entrapment Defense Would be One of

the Greatest Events in U.S. History Kurt Haskell | Such a trial could possibly
wake up the millions of American citizens that fail to even consider that its
government is corrupt, dishonest, and working for those who only seek to
consolidate their power and wealth.
Establishment Reacts To Ahmadinejad 9/11 Controversy Like Kid Caught With

Hand In Cookie Jar The reaction of establishment politicians and their
corporate media mouthpieces to Iranian President Mahmoud Ahmadinejad’s
comments about 9/11 is akin to that of a guilty child caught with his hand in
the cookie jar and chocolate smeared all over his face.
Establishment Feigns Outrage At Ahmadinejad’s 9/11 Rant The spectacle of a

minority of UN diplomats walking out on a speech by Iranian President
Mahmoud Ahmadinejad in which he questioned the official story behind 9/11
was instantaneously seized upon by the establishment media and exploited
as a way of demonizing any inquiry into the terror attacks.
David Rosenberg: Forget Gold $1300, It’s Going To $3000 It may be overbought
on a near-term technical basis, but gold — now on the precipice of breaking
above $1,300/oz — is likely to remain in this secular uptrend for quite a while
longer. We’re talking years. We’re still talking $3,000/oz.
Dollar Hits All Time Low Against Swiss Franc The USDCHD just printed at 0.9780,
the lowest ever in history. The dollar obliteration, and the rush to safety
away from the psychopaths of the Federal Reserve continues.
Buffett to taxpayers: Get over your anger Taxpayer anger against President
Barack Obama and Congress is counterproductive because policy makers
took measures including deficit spending to stimulate the economy,
billionaire investor Warren Buffett told CNBC.
Gold Breaks Psychological $1,300 Barrier Gold has continued its astronomical
ascent, reaching a new record-breaking high of $1,300 an ounce today. This
is the fourth day of record high gold prices. Earlier in the week, the precious
metal surged after Federal Reserve boss Bernanke said the banksters will
provide extra “monetary stimulus” to boost the collapsing economy.
Bono’s ONE foundation under fire for giving little over 1% of funds to charity
Daily Mail | The non-profit organisation set up by the U2 frontman received
almost £9.6million in donations in 2008 but handed out only £118,000 to
good causes (1.2 per cent).
Drudgereport: FBI Serves 'Terrorism' Warrants in Chicago, Minneapolis...

...raids homes of war protesters
Justice Official Calls Dismissal of Black Panther Case 'Travesty'...
...Says Dept. Discourages 'Race Neutral' Enforcement of Laws...
PAPER: QUEEN TRIED TO USE STATE POVERTY FUND TO HEAT BUCKINGHAM
PALACE...
'We need to trust each other' (Washington Post ) [ Yeah! That’s leader of nations
Turkey ‘talking turkey’ while the israelis, with a plethora of illegal nukes,
casually as if by some unbenounced entitlement, say that they won’t sign
the Non-proliferation Treaty because it’s not in their interest to do so. You
can’t make this stuff up; yet, there’s bewilderment as to why the u.s., mid-
east, and world are in such a deplorable and chaotic state. ]A23 (Post)
...with the United States, Israel and Iran. Excerpts: Q...is also party to the
[Non-Proliferation...
Milbank: A broken pledge The GOP breaks its 'Pledge to America' (Washington
Post ) [ Oh, come on! No surprise here. A cliché remains true and the
bipartisan reality is that, quite simply, there’s no honor among thieves (and
gutless scoundrels) ] It took the Republicans just three minutes to violate
their Pledge to America.
Blockbuster goes bust (Washington Post ) [ Sounds like a plan! … The new
america plan … Drudgereport: Zuckerman: The American Dream Has Become a
Nightmare... Buffett: 'We're still in a recession'... ] The video retailer filed for
bankruptcy after it failed to stand up to competition from the likes of Netflix.
Chaos in the nation's foreclosure system (Washington Post ) [ Is that all? If only
the chaos was only in the defacto bankrupt nation’s foreclosure system; that
would be something to cheer. Unfortunately, corruption in america is pervasive,
systemic, structural and the chaos is a growth factor in the most negative
sense ]Ally Financial's decision to halt home evictions in 23 states brought to
light troubles in the overburdened foreclosure system including faked
documents, forged signatures and lenders who take shortcuts.
Obama focuses on human rights [Washington Post ] At U.N., president urges
nations to "not stand idly by" when those values, democracy are threatened
[ except when defacto bankrupt america is doing the threatening, which is usually
the case, and if you’re white … ( UPDATE: MORE CLAIMS OF RACE BIAS AT
Holder’s vows to target financial fraud Obama broke promises ) ] .
Recession is far from over for many Americans (Washington Post ) [ Many? How
‘bout most all! Beyond the election / incumbent desperation act / rhetoric. ]
Buffett: We're Still in a Recession [ Wow! A moment of lucidity from Buffet which
belies his prior ‘rosy wall street shill talk’, but his greater candor is welcomed
nonetheless although the ‘d’ (for depression) word is more appropriate and
accurate.] Roche ‘Warren Buffett disagrees with the NBER. He says we’re still in
a recession and likely to remain in a recession for quite a while. These comments
are far more tempered than the ones that were published last week. Of course, my
favorite part in this clip is where he says the U.S. government did the right thing
in responding to the crisis. They certainly did the right thing for Berkshire
Hathaway (BRK.A) shareholders. Whether or not they did the right thing for
America is a whole other story…’ [ And, of course we now know that it wasn’t the
right thing for america … The question inevitably becomes, ‘Who’s manipulating
who, what, and why? After all, we know defacto bankrupt america’s pervasively
corrupt! ]
We need another yardstick to measure how bad off we are, because the one we
have now isn't good enough. The recession may be declared over, but the
hole we've dug is too deep to be measured only by the macroeconomic
factors considered by the bureau.
Look Out Below! Harding ‘…And at a time when last week’s weekly AAII investor
sentiment poll showed 50.9% bullish? That’s the highest level of bullishness and
complacency since it reached 54.6% bullish in October, 2007 near the October,
2007 top of the 2003-2007 bull market. The other higher reading was 53.3% bullish
on May 1, 2008, as the market ended a bear market rally and plunged into its
unfavorable season leg down of 2008. Other readings not quite as high, but at
interesting times: The poll reached 49.2% bullish just prior to the Jan/Feb
correction this year, and 48.5% bullish at the April top this year …’
Thursday Market Outlook: Listening to Herbert Hoover
‘Red Flag: We Expect Lower Prices Ahead

Daily Technical Sentiment Indicators: Optimistic (Bearish)
Short Term Market Condition: Overbought (short term bearish)
Short Term Trend: Up
Medium Term Trend: Down
Long Term Trend: Down
So far, this week’s news and market action looks decidedly deflationary and even
depression-like and so I went back in time to see what President Herbert Hoover, often
blamed for the Great Depression, had to say about his times and to see what we might
be able to learn from him about the times we live in.
Some of his most prescient and applicable quotes were:
“Let me remind you that credit is the lifeblood of business, the lifeblood of prices and
jobs.” (Certainly an issue today and our money center banks should pay heed)
“It is just as important that business keep out of government as that government keep
out of business.” (No doubt about it. Every policy maker in America needs to understand
this.)
I’m the only person of distinction who has ever had a depression named for him.”
(President Obama might be the second.)
“Economic depression cannot be cured by legislative action or executive

pronouncement. Economic wounds must be healed by the action of the cells of
the economic body – the producers and consumers themselves.”
(Dr. Bernanke and his colleagues really need to “get” this one, and judging from what
I’m reading this week, I’m not sure they do.)
And, finally, old Herb had a morbid sense of humor when he said, “Blessed are the
young for they shall inherit the national debt.” (Unfortunately still too true today.)
So apparently as the old saying goes: “The more things change, the more they stay the
same.”
This week so far has been more than a little spooky and reminiscent of Herbert
Hoover’s times as we listened to Dr. Bernanke and the FOMC warn of deflation and
further quantitative easing and then read today’s housing report which indicated that
home prices declined in July by -0.5%.
The FOMC said that “the pace of recovery in output and employment has slowed in
recent months…and that “employers remain reluctant to add to payrolls. Housing starts
are at a depressed level. Bank lending has continued to contract, but at a reduced rate
in recent months.”
“Measures of underlying inflation are currently at levels somewhat below those the
Committee judges most consistent, over the longer run, with its mandate to promote
maximum employment and price stability…..the Committee will continue to monitor the
economic outlook and financial developments and is prepared to provide additional
accommodation if needed to support economic recovery and to return inflation, over
time, to levels consistent with its mandate.”
So in a nutshell, deflation is a major concern, the $1.5 Trillion the Fed has thrown on
this fire has failed to work and now they stand ready to throw more money at this
problem in hopes of keeping our economic ship from sinking.
It’s clear what the market thinks of all of this as Treasury bonds continue to rally and
gold heads for the stratosphere. Equities cheered Dr. Bernanke’s comments at first but
then, realizing that deflation is a bad thing, settled back down to well below the top of
the recent range.
One only needs to look at history to see that government efforts have little impact on
ending depressions and deflation. The Great Depression didn’t end until the onset of
World War II and Japan is a prime example of the ongoing failure of quantitative easing
policies as they enter their second “lost decade.”
Today comes the jobs report, home sales and leading economic indicators and we’ll see
if any light shines from this most recent data.
Technically, markets remain overbought and due for a correction and so from a
fundamental, technical and seasonal perspective, we are in treacherous waters for sure.
We need to learn from Herbert Hoover’s words and experience or fall victim to George
Santayana’s famous warning, “Those who do not remember the past are condemned to
repeat it.”
Wall Street Sector Selector remains positioned to the “short” side of the market,
expecting choppy to lower prices ahead.
Disclosure: SH, EFZ, SEF, SPY put option’
Am I Too Bearish? [ In a word, No! ] Cullen Roche ‘1) Am I too bearish? Some
commenters have noted that I seem a bit too bearish all the time. Some have even
gone so far as to imply that I am a permabear. These are fair comments, but require
some clarification. The other day I mentioned my top down approach to the markets.
Most of what I write about here at Pragmatic Capitalism is a macro view. Therefore, you
get a heavy dose of macro with a dollop of micro. I am of the belief that we are in a
secular bear and a balance sheet recession. Therefore, you get a pretty heavy dose of
bearish arguments thrown at you. Nonetheless, I try to balance the site out with some of
the more reasonable bullish arguments. What I am not, however, is a permabear. Within
this macro outlook I have been bullish at many of the most opportune moments in the
last few years. Most notable was my bottom call on March 8th when everyone in the
universe was negative and I said the government was about to engage in an
unprecedented market intervention that would be bullish for stocks. More recently on
September 1st I was asked specifically if I was shorting the market. My response:
Ideally I would, however, I think it’s dangerous to build shorts right now. If
the market is about to collapse then it’s about the most widely known
collapse ever. Markets don’t tank when everyone is this bearish unless
there is some sort of extreme event (which isn’t occurring currently). I think
the April period when I was very negative (and short) is a great example.
I have actually been looking for a spot to get long even though my macro
outlook is negative (which it has been for several years)…
Now, in fairness, I did not buy for my macro equity strategy so don’t take this as some
form of revisionist history where I am patting myself on the back for a trade that never
occurred. On September 2nd I got what I later referred to as a “soft buy signal” as
opposed to a conviction buy signal (more on this below). In hindsight it’s easy to say
that I should have had more conviction in the signal and simply bought stocks, but that’s
not my modus operandi. As I have previously explained, I have rules within my micro
outlook that guide my various strategies and approaches. I trade the indicators (in this
case a proprietary algorithm) and not the market. My rules tell me when to buy, sell and
short. If my strict rules are not met I do not act.I have often referred to myself as a lion in
the grass. The lion is not greedy. She does not just run wildly across the plains chasing
antelope (thinking of day traders here). Instead, she devises a plan and lies in wait as
the plan unfolds to her liking. If the environment is not right she does not act. There is
too much at stake for her to make mistakes and risk losing a meal that might feed an
entire pride for weeks or months. My mentality is no different. I am not frantically trading
therefore you get a small dose of my trading perspective. Instead, I am measuring the
risk environment day by day waiting for the antelope to step just close enough so I can
react in a way that gives me very good odds of being right, fat and well fed for many
months.
2) Quantifying the disequilibrium. As I previously mentioned, I use several strategies.
One of these is global macro, however, it has never been my strong suit. It never has
been, but it is an approach I have grown increasingly confident about in recent years (a
little luck in a tough market environment apparently results in a bit of hubris). Within this
strategy I have an equity component. I use dozens of different indicators that measure
the markets on a daily basis. These indicators are best summed in an indicator I call
quantified disequilibrium. It is a short-term indicator that measures whether the market
is excessively risky or not. It combines fundamental analysis with behavioral finance in
an attempt to measure the disequilibrium in the market. Since its inception in 2008 it has
resulted in 74% total returns vs -22% for the S&P 500. Trade win rate is 84%. I have not
calculated risk adjusted returns for the index, but I am certain that they are impressive.
Some of its more notable calls include shorting the market crash of 2008, shorting the
flash crash of 2009 and buying in early March 2009. After issuing a soft buy signal on
September 2nd the index is now flashing the warning signal (but not a short signal).
This does not mean the market is necessarily about to decline, but merely means that
the risk/reward profile has deteriorated substantially in recent weeks. (chart)
3) Revisiting Swedish models. Some people in this country have a big problem with
Swedish models. I certainly don’t. Throughout much of 2008 I mentioned that there
were two historical approaches to tackling a debt crisis – the Japan model and the
Swedish model. The results were dramatically different. In essence, the Swedes took
their medicine. They bit the bullet, forced the banks to take losses and helped stem a
panic from occurring. The Japan outcome, as we all know, has not been quite so
successful. They allowed zombie banks to earn their way out of the crisis and largely
avoided taking their medicine. On the consumer front the U.S. has implemented similar
strategies. In general cash for clunkers, homebuyers tax credits, bank bailouts, etc have
all been attempts to paper over he debt problem. It clearly hasn’t worked. We have
attempted to create capitalism without losers. There is no such thing. In September of
2008 I wrote a letter to the Federal Reserve. It said:
I am writing this letter with regards to the current banking crisis. As you
likely know there is precedent for the issues we are currently facing. Not
only did Japan enter a similar deflationary period in 1991, but Scandinavia
entered an even more similar period around the same time. I have
attached the contact info and a paper with a descriptive response to the
issue by Arne Berggren. I hope you will forward this message to the
appropriate sources as it contains brilliant insight into a situation that is
very similar to our current predicament. And please thank the board for
their hard work during these trying times.
http://www.fdic.gov/bank/historical/managing/sym1-09.pdf
I wonder how different the world would be today if we had allowed more banks to be
nationalized (or failed) while focusing our time and energy on the real crux of this crisis
– Main Street. Instead, we listened to men who were either misguided and/or had a
vested interest in saving the banks (Buffett, Paulson, Geithner, Bernanke, etc). It would
be humorous if it hadn’t hurt so many millions of people. My guess is the long-term
outlook for the U.S. economy would be far better than it is today if we had not repeated
the mistakes of the past.’
Thursday: Bubble, Bubble, Toil and Trouble [ As is obvious, things are getting
quite dicey on fraudulent wall street and there’s a typical plethora of insanity in
the air (of wall street).] ‘
"I’m forever blowing bubbles,

Pretty bubbles in the air,
They fly so high, nearly reach the sky,
Then like my dreams they fade and die.
Fortune’s always hiding,
I’ve looked everywhere,
I’m forever blowing bubbles,
Pretty bubbles in the air."
Gold, Treasuries, Junk Bonds, Netflix (NFLX) (we shorted them yesterday),
Priceline (PCLN) (we shorted them Monday), Credit Default Swaps - take your pick of
what is going to be the next bubble to burst.
We shorted TLT again yesterday ($105) as I sure wouldn’t lend the US money at those
rates and neither, it seems, will the "smart money" guys anymore. The cost to hedge
against losses on U.S. government debt rose to the most in six weeks as investors bet
the Federal Reserve will put more cash into the economy. Credit-default swaps on U.S.
Treasuries climbed 1.7 basis points, the biggest increase in more than three weeks, to
49.4, according to data provider CMA. The Fed said Tuesday that slowing inflation and
sluggish growth may require further action. The statement positioned the central bank to
expand its near-record $2.3 trillion balance sheet as soon as their November meeting -
just in time for a Santa Clause boost for the markets.
So why does this not make us bullish? Well, as I said to Members on Tuesday, it was
an anticipated statement with no immediate action and we’re at the top of a 10% run for
September so, as I said in yesterday’s post, we anticipate a pullback of 2%, back to our
4% line (see post). Also in yesterday’s post, I mentioned our IWM 9/30 $67 puts ($1.10)
and the DIA Oct $105 puts (.89) both of which were good for a reload on yesterday’s
silly spike, where I said to Members in the 9:56 Alert:
I like the same IWM and DIA puts as yesterday as we test

10,800 on the Dow - I don’t think it’s going to last. Tomorrow
we lose the usual 450,000 jobs for the week and we have
Existing Home Sales at 10, which can now disappoint as
Building Permits were a big upside surprise yesterday. We
also get Leading Economic Indicators at 10 but they are
expected up just 0.1% and I doubt they go negative. Friday
we have Durable Goods, which should be down 2% and
New Home Sales at 10, also now set up to disappoint even
the very low 291,000 expected. So caution, caution, caution
PLEASE!
I had already mentioned in the morning post that "bear is the word" and this is where
the free readers tend to get confused because I was all bullish for the beginning of the
month but, as I say often enough and as our Members know very well - I am not bullish,
I am RANGEISH - which is a very different thing. 10,700 is the top of our range and with
the Russell failing to confirm our 5% line at 666 (they hit it but didn’t hold it) kept us
cautious and then we turn to the news flow to see if we’re going to have the gas to get
past our major resistance lines and, so far, no - we do not.
Right in yesterday’s morning post I said: "The weak dollar will mask a weak market this
morning and that will support commodities and the commodity pushers in early trading
but watch that dollar, which will likely get bought up by the BOJ at some point and that
will send oil and copper down and those strong sectors will pull back and likely lead us
back down to test our 4% levels at Dow 10,608, S&P 1,112, Nas 2,288, NYSE 7,072
and Russell 660." Just to be clear, I don’t MAKE the markets do these things - I can only
tell you what the market is going to do and how to make money trading it but I’m not the
guy with his hand on the switch, so don’t blame me. We flip-flop when we have to
because the market changes every day and whether you are a bull or a bear, you are
likely to be wrong soon.
Speaking of being wrong, that’s what we were about gold at the beginning of the week
when we looked at GLL for a short position at $1,280. We are scaling in, of course but,
as I said about gold in yesterday’s chat:
"It’s a bubble. The same statements they are making now

were made about housing and oil and tulips. Just keep in
mind that that doesn’t stop gold from going to $3,000, just
like oil went to $147, up 47% in the last Quarter before it
crashed and it ended up all the way at $35 yet "that time is
was different" and 1,000 experts told me I was wrong for all
of ‘07 and ‘08 and, for 75% of that time - THEY WERE
RIGHT!"
Even as gold flies up to $1,299 and copper tags $3.594 in overnight trading,
commodities under management dropped 2.3% last month from a record $300Bn to
$293Bn. This was the first pullback since January as investors withdrew $5Bn from
commodity index swaps - the first monthly decline in 5 years! “There was concern about
the U.S. and concern about China that spooked the market,” according to Barclays
Capital.
There’s even some in-fighting within the Gang of 12 as Morgan Stanley says investors
should buy the lowest-rated corporate debt, while Goldman Sachs says stay away.
Bonds graded CCC in the U.S. are the “cheapest” high- yield securities with “economic
data once again beginning to surprise to the upside,” Morgan Stanley told clients
yesterday in a report. Goldman Sachs says higher-rated speculative-grade debt is the
way to go as the economy decelerates.
And what should we do when mommy and daddy are fighting like this? Cash out and go
stay at a friend’s house is my advice. The September move may not be over but it sure
does look fake at this point and making 10% in a month is plenty for most people’s year
so I’m leaning towards quitting while we’re ahead and getting prepared to flip
aggressively bearish if our 4% levels don’t hold.
Of course, this is just the follow-through of the pattern we expected post-Fed (see
charts in Tuesday’s chat) so we’re just going to enjoy the ride down and we
reserve the right to get bullish again (and this does not affect our long-term, hedged
trades, just our directional short-term bets) - pending earnings reports, of course.
As we expected, jobs are a bust with weekly unemployment up 12K to 465,000, that’s
dipping the US futures about 1% and we still have Existing Home Sales and Leading
Economic Indicators at 10, which were already reasons we took bearish positions
yesterday. The key is going to be what kind of volume we get on the way down and
what levels hold up to give us a clue of whether we are still at the top of our 10,200,
1,070 range or whether we indeed can call our former mid-range new floor. Oil broke
yesterday, as we expected (very nice for the OIH puts) and today’s natural gas report at
10:30 is not likely to cheer them up and $73.50 would be a shame to fail. We’ve been
tracking the barrel counts over at the NYMEX in member chat and there is still quite a
stockpile that needs to be worked off - another bearish factor that’s kept us on our toes
as we approached our upside goals.
Asia was mixed this morning but mostly closed for holidays with the BSE posting yet
another decline. We looked at some BRIC shorts yesterday, including India but I
favored BGZ (ultra-short emerging markets) to shorting IFN (India ETF), which gives
fantastic bang for the bearish buck.
The shine is coming off India as they’ve butchered their chance to impress people by
hosting the 54-nation Commonwealth Games, with some countries threatening to pull
out just weeks before training begins. Work for the Games has been plagued by
construction delays, allegations of corruption and friction between officials of the Games
Federation and the local organizing committee. A heavier-than-usual monsoon season
made finishing the work harder. Some completed venues sprouted bad leaks.
Ireland’s GDP also sprang a bad leak in Q2 as an unexpected 1.2% decline casts
serious doubts on the country’s ability to cut the deficit by 3%, feeding concerns over
Dublin’s ability to repay it’s debts without outside help. Although "economists" called it
wrong, the report is pretty much in-line with the IMF’s expectations, which were far more
bearish so not a huge event but worth watching as a sentiment changer, nonetheless.
Private sector growth dropped 5% throughout the Euro-zone to 53.8, down from 56.2 in
August. Above 50 is still growing but, like Ireland’s GDP, these little set-backs can add
up to a change in investor sentiment very quickly.
An appreciation of 20 percent in China’s currency would cause widespread
bankruptcies in China’s export sector, where firms operate on thin margins, Chinese
Premier Wen Jiabao said on Wednesday. "The conditions for a major appreciation of
the renminbi do not exist," Wen said in a speech to U.S. businessmen in New York. He
said the appreciation of China’s currency demanded by U.S. lawmakers would not bring
jobs back to the United States because U.S. firms no longer make such labor-intensive
products.
The Premier is in New York to get his ass kissed by Obama while we pretend to get
tough on Chinese currency. As I mentioned last week, China has stopped bying US
Treasuries and, for the moment, Japan is filling the gap - but how long will that last as
Japan is pressured to apply more stimulus at home?
We’ll be on our toes as we test each of our levels on the way down. Hopefully those 4%
lines will hold, which would be impressive with all this negative noise. Durable Goods is
ahead of the bell tomorrow morning and it’s very unlikely that report is good and we also
get record-low New Home Sales at 10 so there’s nothing to be bullish about into
tomorrow’s open and next week we see our own GDP along with Case-Shiller,
Consumer Confidence, Personal Income & Spending, ISM and Auto Sales so busy,
busy into earnings.
Disclosure: None’
A Warning for the Bulls Cam Hui ‘As NBER has declared the recession over and with
the SPX decisively rallied through technical resistance at 1130, traders should be tilting
towards the bullish side, right?Not necessarily. Barry Ritholz posted on the 10 things
that make him nervous about the market. I generally agree with Barry's assesssments
and I would like to add a few more of my own. While I don't have ten items, here is what
is bothering me about stocks at the current levels.
Technicals pointing to economic deterioration

Analyzing relative charts, sectors/industries relative to the market, can tell you a lot
about what the consensus is thinking. Here is the relative chart of the Morgan Stanley
Cyclicals Index: (chart)The chart looks like an inverted saucer to me - which is bearish.
The cyclicals deteriorated through a relative uptrend in May and are now in a relative
downtrend. This is not the picture of a robust economic recovery.What's more, when I
look at housing, as proxied by XHB against the market, it isn't signalling a rip roaring
recovery either. (chart)As well, the Banking Index looks terrible against the market. This
picture looks a lot like the relative chart of the cyclicals - a relative downtrend within an
inverted saucer top formation. Without leadership from the Financials, can a new upleg
be launched?(chart)For the followers of my Inflation-Deflation Timer mode, I refer to my
latest comment indicating that I am getting very mixed signals. The model has moved to
a technical "inflation" signal. I would tend to discount that signal and remain in "neutral"
because of the anomolous condition of strong commodity prices and falling bond yields.
Watch out for the double-tip talk

John Hussman has been writing in the last several weeks about impending deterioration
in economic indicators [emphasis added]:
As I've emphasized in recent weeks, the U.S. economy is still in a normal
"lag window" between deterioration in leading measures of economic
activity and (probable) deterioration in coincident measures. Though the
lags are sometimes variable, as we saw in 1974 and 2008, normal lags
would suggest an abrupt softening in the September ISM report (due
in the beginning of October), with new claims for unemployment
softening beginning somewhere around mid-October. It's possible that
the historically tight relationships that we've reviewed iin recent weeks will
not hold in this particular instance, but we have no reasonable basis to
expect that. Indeed, if we look at the drivers of economic growth outside of
the now fading impact of government stimulus spending, we continue to
observe little intrinsic activity.
Already, the employment picture is ominous:
• IMF Managing Director Dominique Strauss-Kahn has warned about a jobless

recovery.
• The New York Times reports that older Americans are worrying that they will be
permanently locked out of employment. Even if that isn't true, these concerns will
serve to put a lid on their spending.
• Polls show that unemployment is rising again.
• At a local level, Gregor Macdonald reports that California employment is falling
again.’
Jobless Claims Up 1st Time in 5 Weeks Zacks | Initial Claims for Unemployment
Insurance climbed by 12,000 last week to 465,000. That is the first increase
in five weeks.
Is the Economy as Broke as Lehman Was? Michael Hudson | American

homeowners are victims, not crooks.
State unemployment: Jobs picture gets worse in 27 states CNNMoney | On a

state-by-state basis, the jobs picture continues to look a lot more grim in
places like Nevada, Michigan and California.
Obama Administration Is ‘Anti-Business’: Jack Welch High unemployment may
last for a long time because of the sluggish economy, bad politics and
advances in technology, Jack Welch, author of “Straight from the Gut,” told
CNBC Thursday.
Did the Fed Really Say Inflation Isn’t High Enough? Get ready everybody. Things
are about to get a lot more expensive.
Manufacturing’s decline threatens national security, House panel hears The

hollowing-out of the US’s industrial base means the country is risking its
national security by being dependent on foreign contractors, experts told a
congressional panel Wednesday.
Euro Survival ‘Silly’ Question: Ex-ECB Board Member The question whether the
single European currency will survive the current crisis is a “silly” one
because the present situation created opportunities to actually make the
monetary union stronger, Otmar Issing, president of the Center for Financial
Studies and a former ECB board member told CNBC Thursday.
Delaware Sends Infowars.com “First Offense Warning” for Sign Kurt Nimmo | The
government of Delaware either is unaware that Alex Jones is not responsible
for the sign, or is engaged in harassment.
Obama Admin predicts small scale terror… in time for elections, again? Aaron
Dykes | “Terrorism” concerns necessarily hinge on fear, and it is now
completely predictable that an otherwise unpopular Obama Administration
would roll out the threat of terror to bolster support for the 2010 elections.
Proposed Law Would Allow Justice Department to Shut Down Websites Kurt
Nimmo | Law is the latest effort by the government to control and eventually
roll back the free and open internet under the guise of protecting copyright.
Alex Jones: ‘UN a Nazi movement’ Russia Today | A growing number of
Americans are increasingly frustrated with international groups like the UN,
IMF and World Bank.
The Globalists Plan for a Coming World Currency Mark Matheny | “Give me
control of a nation’s money and I care not who makes her laws.”
Proposed Law Would Allow Justice Department to Shut Down Websites The
Senate Committee on the Judiciary will consider action today on a bill
entitled Combating Online Infringement and Counterfeits Act, ostensibly
designed to allow the Justice Department to combat copyright infringement.
Obama Admin predicts small scale terror… in time for elections, again?
“Terrorism” concerns necessarily hinge on fear, and it is now completely
predictable that an otherwise unpopular Obama Administration would roll
out the threat of terror to bolster support for the 2010 elections.
Establishment Upset We’re Not Discussing Mindless Drivel Tom Krazit of CNet
News is apparently upset that someone would attempt to create talking
points of national interest that are not focused around the moronic behavior
of vacuous celebrities like Lady Gaga, Justin Bieber, and whatever other
mindless drivel the corporate media serves up on a daily basis.
Congressman Wants Overpopulation Myth To Be Taught In Schools A Democratic

Congressman has called for schools and centres of education to “promote
the agenda” of climate change and the idea that unfettered population
growth is killing the planet.
Google’s Eric Schmidt: “when you post something, the computers remember
forever” Google CEO Eric Schmidt went head-to-head with Stephen Colbert
yesterday evening to discuss everything from data-mining to China to
Schmidt’s “joke” about privacy.
Feds Target Americans As Terrorists In Effort To Break Back Of Big Government
Resistance The feds are up to their old tricks once again – demonizing
American citizens who are politically engaged and use the Internet as
domestic terrorists in a transparent ploy to chill free speech and immobilize
resistance to big government – when in actual fact every major terror plot in
the United States was provocateured, contrived or directly facilitated by the
federal government itself.
US walks out on Ahmadinejad's UN speech (AP) - The U.S. delegation walked

out of the U.N. speech of Iranian President Mahmoud Ahmadinejad on Thursday
after he said some in the world have speculated that Americans were behind the
Sept. 11 terror attacks, staged in an attempt to assure Israel's survival.
Drudgereport: Spitzer: Cuomo 'Dirtiest, Nastiest' Of Politicians … but he made

mob’s man cuomo his Cujo / consiglieri attorney general anyway … how pathetic
is new york .....
Dead in Afghan chopper crash were all American...
Jobless claims rise again...
Welch: Administration Is 'Anti-Business'...
Zuckerman: The American Dream Has Become a Nightmare...
Buffett: 'We're still in a recession'...
Military toughest on Obama (Washington Post) [ Almost hard to believe since

wobama foolishly, in contravention of campaign pledges and sound judgment,
has given the ‘sullen mullen militants’, also contrary to reason, everything they’ve
asked for and more; kind of a dumbya bush in disguise (but I believe Woodward).
Credit must be given to the three officers - retired Lt. Gen. Karl W. Eikenberry,
retired Gen. James L. Jones and Lt. Gen. Douglas Lute, the generals tapped for
key positions that are traditionally filled by civilians, for their astute but ignored
analysis and courage for standing up to the darkly dysfunctional sullen
mullenights who got their ill-found way. ) ] Bob Woodward's new book presents
three generals in civilian posts as his most skeptical critics.
Large U.S. paramilitary presence in Afghanistan (Washington Post) [ Yeah …
defacto bankrupt america can really afford it … you know, to protect (and
participate in) their resurgent heroin trade to the benefit of the few ‘insiders’. ]
Existence of covert CIA teams, operating near the Pakistan border, is revealed in
a new book by Bob Woodward and documents released by WikiLeaks.
GOP to call for spending freeze (Washington Post) [ Presumably because in

defacto bankrupt america you can’t spend what you don’t have (or can you)
which of course hasn’t stopped them in the past and certainly didn’t stop war
criminal dumbya bush, et als. I don’t believe anything they say; and that’s a
bipartisan statement. ]"Pledge to America" illustrates how party would govern if it
wins control of Congress in Nov.
Trade legislation to advance (Washington Post) [ Riiiight! That evil Chinese

Mourning in America (Washington Post) [ More like, ‘mourning america’ while the
rest of the world, in light of america’s fabricated, illegal wars and war crimes is
saying, ‘good mourning america’.]
Sucker's Rally? Reitmeister ‘Why am I trimming profits when the market seems to
be rallying?
1. Are economic conditions really better than a few weeks ago when we were
pressed down on Dow 10,000? No. It's just that it’s not as bad as some
double dippers thought and so we rallied higher in the range.
2. Why should we go higher right now? Yes, there does seem to be some
“technical momentum”… but I am not a technician. I am a fundamental
investor. Plain and simple, the fundamentals don’t support us going much
higher until there is more proof of economic growth…
3. I am a contrarian by nature as I think most investors will guess wrong
given how fear and greed leads to “less than rational” decision making. So
I said buy when everyone said to sell. And I was right. Now with many
former sellers becoming buyers they are pushing the market above where
it should be and thus I say sell...
4. Bond investors waving a yellow flag: We have a breakdown once again
between bond and stock investors. The rates on Treasuries went down
yesterday when the stock market raged higher. Why is there more flight to
safety into government bonds on a day stocks are at the highest level in
months? Probably because stock investors are wrong…’
Shortcuts, forgeries mar foreclosure process (Washington Post) [ Wake up

everyone! Defacto bankrupt america’s financial, legal, judicial, etc.,
processes are so flawed and pervasively corrupt that illegal becomes legal
to give the appearance of a working though broken system throughout …
and, then there’s the cover-up, which ‘dog don’t hunt no more’.] The nation's
overburdened foreclosure system is riddled with faked documents, forged
signatures and lenders who take shortcuts reviewing borrower's files,
according to court documents and interviews with attorneys, housing
advocates and company officials.
Justice: FBI improperly opened probes (Washington Post) [ Well, I just hope
they’re as zealous (in probing readily discernible crime) with regard to my RICO
matters and the corruption in the (judicial / legal) process since, in the final
analysis, it will have been the corruption within that will have brought the nation
down irrevocably and totally ] .
9-13-10

Dear Sir:


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) ******** (cell phone)
nefarious sense (
) ]:


# 3 Germany: 6,507,394
… ]
A quandary in Afghan corruption fight (Washington Post) [ Come on! Is this

some cruel joke? Corruption, lawlessness is now synonomous with america.
Afghans question U.S.-style corruption/capitalism (Washington Post) [ As indeed
they should inasmuch as the same is neither capitalism nor american style in the
traditional sense referenced here. Defacto bankrupt, in decline, and pervasively
corrupt, meaningfully lawless america is a nation unworthy of emulation! ] Kabul
Bank became the pride of Afghanistan's financial system by offering the
conveniences and thrills of 21st-century capitalism. But the scene outside the
bank's headquarters Wednesday was far from that modern ideal.U.S.-backed
investigative teams have assembled evidence of rampant corruption in
Afghanistan, and the findings have had unintended consequences.
Trade legislation to advance (Washington Post) [ Riiiight! That evil Chinese

Sucker's Rally? Reitmeister ‘Why am I trimming profits when the market seems to
be rallying?
5. Are economic conditions really better than a few weeks ago when we were
pressed down on Dow 10,000? No. It's just that it’s not as bad as some
double dippers thought and so we rallied higher in the range.
6. Why should we go higher right now? Yes, there does seem to be some
“technical momentum”… but I am not a technician. I am a fundamental
investor. Plain and simple, the fundamentals don’t support us going much
higher until there is more proof of economic growth…not just proof of no
double dip.
7. I am a contrarian by nature as I think most investors will guess wrong
given how fear and greed leads to “less than rational” decision making. So
I said buy when everyone said to sell. And I was right. Now with many
former sellers becoming buyers they are pushing the market above where
it should be and thus I say sell. But not an outright sell. Just trim profits
and be a bit more defensive until the fundamentals can provide support for
a greater advance.
8. Bond investors waving a yellow flag: We have a breakdown once again
between bond and stock investors. The rates on Treasuries went down
yesterday when the stock market raged higher. Why is there more flight to
safety into government bonds on a day stocks are at the highest level in
months? Probably because stock investors are wrong…’
Market Rallies on 'Recession End': Is This a Joke? Satwaves ‘We learned

Monday that the recession that has gripped this country for the last two and a
half years actually ended in June of 2009. The markets rallied on the news, yet left
a lot of my readers asking what it meant. One of our members whom happens to
own over thirty wireless phone stores for example, explained that before the
recession, a great month meant 150 to 200 activations per store. A good month
resulted in 100 to 150 activations per store, while a not-so-good month came in
between 80 to 100 activations per store. Since the recession took hold, this
subscriber considers himself lucky to acheive 50 to 65 activations per store, per
month. Not wanting to let go of employees with families, this member continues
to pay his employees out of his own pocket in the hope that things will get better.
Is the recession really over for him? The answer will surprise you. The short
answer is yes. Economists define a recession as two quarters of negative GDP
growth. In layman's terms, it means only that things stopped getting worse as of
June 2009. It does not signify that anything has improved. Think of a receding
hairline if you will. Just because it has stopped receding does not mean new hair
has grown back. For my friend, and millions of small business owners like him
nationwide, things stopped getting worse back in June of 2009. A bottom had
been established. Unfortunately, this is where most Americans find themselves
living these days. The question going forward is how to fix it. Economists are
looking for moderate growth of about 2.6% as we climb out of the recession. Let's
apply this factor to the gentleman in the example above. Instead of 50 to 65
activations per month, my friend can look forward to that number increasing to 52
to 67 activations per month over the coming year. This is not something my
friend is happy about, and needless to say he gets quite upset when he hears
people touting the end of the recession. This will not create jobs. This will not end
foreclosures. This will not put an end to the record number of poverty stricken
Americans this country now has to contend with. There is a solution however, but
unfortunately it would require the politicians on Capital Hill to put aside their
differences and actually work for the benefit of the people they represent. It would
require a sitting Democratic President to accept an idea from his former
Republican rival. Americans want jobs, not unemployment checks and certainly
not government programs designed to acclimate people to a life of poverty. The
government can and should create those jobs, by building nuclear power plants
across the country. Just as job creation in infrastructure lead us out of the great
depression, so too can it lead the country now. By now everyone knows about
the troubled electrical grid our country faces. Oil and coal generate most of the
power we use today. Still, on a hot summer day air conditioning usage results in
blackouts in cities and towns across the nation. A new movement is now
underway which will test our capacities like never before, in the way of the
electric automobile. Where will the power needed come from? I know of one non-
public company for instance that has ordered 6000 such cars. Although the idea
was first presented by a Republican, a Democrat has the ability to say today that
it is a good idea whose time has come. Let both take credit and let America and
its people prosper. Nuclear power plants will create jobs in every field from
architecture and engineering to food service. It will put to work thousands of
carpenters, electricians, plumbers, drywall installers, roofers, landscapers,
excavators and the like who will purchase everything from groceries to shoes and
yes....even that brand new Droid along with a two year activation. Disclosure: No
positions
Investor 'Sugar High' Becomes 'Sugar Crash' Reitmeister … I am highly amused

by the different reactions that took place after the FOMC Meeting Announcement.
In particular day traders acted like hyperactive children at a birthday party.
Instead of screaming for more cake, candy and cola they pounded the table for
more stimulus. So when they saw the Fed leaning more in that direction they
pushed up the Dow by 100 points in just minutes. Investors came in a bit later to
find the traders crashing from the “sugar high”. You could say that the investors
were like the parents who needed to clean up after the children’s mess. What
investors heard from the announcement was “if the Fed is ready to use more
stimulus, then economy must be a LOT worse off than we suspected”. From there
the traders rally was deflated and the market ended the day in the red. It will be
interesting to see which sentiment prevails going forward …’
The Great Recession is Over. Long Live the Great Deleveraging Marta ‘… The
NBER declared that the recession that began in December 2007 ended in June
2009. The 18-month recession represents the longest since the end of WWII. The
problem with declaring the recession over is that it suggests an end to the Great
Recession. The term Great Recession relies on a misguided concept of the latest
period of negative growth as a normal downturn in the business cycle, even if on
a global scale. Furthermore, in circumscribing the situation within an 18-month
period, the term fails to appreciate the breadth, depth and enormity of the recent -
and ongoing - crisis. Think back on the Great Depression. At least that phrase
contains the word, “depression,” which carries with it the stigma of a really, really
bad, multi-year, economic downturn. However, even that term proves inadequate
… What is happening right now, and what has been happening in fits and starts
since 2000, is the Great Deleveraging, which in many ways parallels the origins
and path of the Great Depression. From 1991 to 2000, just as from 1918 to 1929,
the world enjoyed the benefits of The End of History (end of the Cold War), known
in the former period as The War to End All Wars. The benefits showed up in the
period of “Irrational Exuberance”, known in the earlier period as the “Roaring
‘20’s.” The “Crash of ‘29” was mirrored by implosion of the Internet Bubble in
2000. However, a Depression did not ensue in the ‘00’s because the Fed and the
Federal government responded in exactly the opposite way that they did in 1929
and the early-‘30’s. In 2001-2003, the Fed cut interest rates and the Federal
government cut taxes. An economic recovery ensued. However, just as growth
during the ‘30’s proved ephemeral and sporadic, the recovery of the early- to
mid-‘00’s proved unsustainable. In fact, the above-mentioned policies during the
early-‘00’s, in concert with other government initiatives like “a home for every
American”, increased leverage for large banks, and a failure to regulate hedge
funds, actually caused something of another “roaring ‘20’s” that ended in tears in
2007 with the collapse of home lending and then hedge funds. The financial
system continued to teeter through 2007, before the start of the Great Recession,
and nearly collapsed in 2008. To those who believe that the financial collapse is
complete and that the end of the Great Recession marks the end of an economic
cycle, if not all our economic woes, you are likely to be surprised when you look
back in 10 to 15 years and discover that the term Great Recession spans a much
longer period than originally thought; just as the term "Great Depression" has
been expanded to an indeterminate end date. There are several reasons that the
Great Deleveraging will continue. First, the toxins have not been fully purged
from the international banking system, and so financial intermediation will remain
significantly impaired. Second, private citizens have yet to fully delever. For
example, in the US, many individuals and families are slowly bleeding out
financially, trying to offset underemployment in jobs paying considerably less
than those lost in the past two years by slowly draining savings to pay for houses
that cannot be sold. Third, the governments of several nations, as well as the
ECB, the Fed and the IMF, have onboarded or underwritten many of the toxins
from the private financial system. These bailouts, combined with the excesses of
government forays into excessive social welfare programs, will lead to crises in
the future. For example, in the US, government leaders still fail to act on the
insolvencies of social security, Medicare and Medicaid. Instead, they
outrageously create even more healthcare entitlements and promise that there
will be no extra cost. Fourth, some governments, like the U.S. and Japan, have
engaged in fruitless Keynesian stimulus projects that have worsened the
countries’ fiscal situations without providing the hoped-for growth. In fact, the
situation is becoming dire enough that we are beginning to see competitive
quantitative easing, which presents Japan with the specter of yet another
recession, deflation and a third lost decade. As they try to save their own
economy, they will put more pressure on the economies of their trading partners
and competitors. At some point, all the balance sheets, those of individuals,
banks, governments, central banks and extra-national entities like the IMF, will
need to be purged in order to right the global economy. This is the Great
Deleveraging, and it’s got years to run before it finally burns out.’
State unemployment: Jobs picture gets worse in 27 states CNNMoney | On a

state-by-state basis, the jobs picture continues to look a lot more grim in
places like Nevada, Michigan and California.
U.S. household net worth drops Reuters | U.S. household wealth fell by $1.5
trillion in the second quarter.
More Forensic Evidence of Gold & Silver Price Manipulation In this article I have
unearthed even more forensic evidence in the form of a correlation between
the gold and the silver price which again could not happen by random
chance. It is necessarily a result of deliberate market intervention and what’s
more it occurs on a continuous basis.
The Dollar Is Just Getting Crushed, And It’s Fallen Through Its August Lows Oof.
The dollar is still getting hammered, and it’s not like equities are rallying to
make up for it.
Albert Edwards On Terminal Competitive Devaluation, The Nuclear Option, And

How The Fed’s Policies May Start An All Out War The recent intervention by
the BOJ has quickly become the most contentious decision in global
economic circles, with many wondering now that the world economy is off
on a course of radical currency devaluation, who will be next, and how far
will this game continue?
Israel again makes case for Iran’s Need for Nukes by refuses to join nuclear Non-
Proliferation Treaty It is against Israel’s interests to join a global anti-
nuclear arms treaty and the UN atomic watchdog is overstepping its
mandate in demanding it to do so, its nuclear chief said on Tuesday.
Gold Hits Another Record as Dollar Tumbles On Fed Announcement It is yet

another example of the indispensability of gold as a hedge against the
bankster engineered economic implosion.
National / World
US official confirms CIA has 3,000-man ‘covert army’ in Afghanistan A security

professional in Kabul familiar with the operation says the 3,000-strong force
was set up in 2002 to capture targets for CIA interrogation and handle /
enforce the american initiated resurgent heroin trade. Both sources spoke
Wednesday on condition of anonymity to discuss matters of intelligence.
US House puts oceans, coasts under UN: Senate vote will seal the deal “It’s too
late; it’ll just have to be stopped in the Senate,” Tom, the young male
answering the phone in U.S. Rep. John Boehner’s (R-Ohio)Washington D.C.
office, said about HR 3534 (CLEAR Act).
Israel again refuses to join nuclear Non-Proliferation Treaty It is against Israel’s

interests to join a global anti-nuclear arms treaty and the UN atomic
watchdog is overstepping its mandate in demanding it to do so, its nuclear
chief said on Tuesday.
“Progressive” Washington Think Tank Censors All Independent 9/11 Research

The director of a prominent investigative journalism group has told reporters
that the organisation’s work is being censored because it continues to
highlight stories surrounding questions over the official explanation of
events on the 11th of September 2001.
Orwellian Doublethink: Collapse Is Recovery When the National Bureau of

Economic Research announced, after much deliberation apparently, that the
economic recession ended in June, 2009, it was as if the news were
broadcast from some other planet.
CNN Declares the Constitution Racist In a discussion about Texas governor Rick
Perry, CNN’s Rick Sanchez told Wayne Slater of the Dallas Morning News
that “people of color” consider the Constitution — in particular the Tenth
amendment — racist.
Forget $1,300, Gold Is Heading To $11,000 On Dollar Collapse In light of gold
hitting a new all time record high today, Omnis senior managing director
James Rickards’ forecast that the precious metal will soar to anything up to
$11,00 in the aftermath of a dollar collapse makes the current $1,300 level
look tame in comparison.
Google Trends #1 Hot Search ‘Save His Presidency’ Matt Ryan | Today on the Alex
Jones Show, Alex asked listeners to Google ‘save his presidency’ in an
effort to get the word out about a powerful article by Paul Joseph Watson
outlining President Obama’s claim that America can “absorb” a terror attack.
9/11 research to be censored from ‘Project Censored’ Steve Watson | According to

its directors, ‘Project Censored’ is facing censorship due to its ongoing
commitment to cover 9/11 Truth stories.
Will Obama Force America To “Absorb A Terror Attack” To Save His Presidency?
Paul Joseph Watson & Alex Jones | Ominous words suggest desperate
administration could turn to false flag in bid to crush resistance against big
government.
Alex Jones Talks About Humanity’s Struggle & Future Potential Steve Watson &
Alex Jones | Or die before you physically perish.
Economic Collapse Leading to Privatized Police and Corporate Mercenaries Eric

Blair | As America continues to implode, it appears that security will go to the
highest bidder, leaving average citizens to fend for themselves.
Foreclosure snag could hit other lenders (Washington Post) [ As if banks, etc.,
didn’t need even more uncertainty. After all, even from the fed’s standpoint
the economic outlook is ‘uncertain’; then there’s the even more uncertain
that for them is absolutely certain; viz., that those now marked to anything
toxic assets / paper / securities are not now and won’t ever be what they’re
currently valued at under the new FASB rules that allowed them to inflate
there balance sheet positions. ] Some of the nation's largest mortgage
companies used a single document processor who said he signed off on
foreclosures without having read the paperwork -- an admission that may
open the door for homeowners across the country to challenge foreclosure
proceedings.
Fed statement sets table for possible action in autumn (Washington Post)
[ Sounds like a prescient ‘no-plan’ without the prescience from ‘no-
recession-helicopter-ben b.s. bernanke’ who we all know is not prescient.
Yeah … ‘open-door policies’ which can kill 3 birds with 1 stone, so to speak;
viz., the economy, illegal immigration, and China’s trade dominance in one
fell swoop giving new meaning to that historical ‘open door policy’ vis-à-vis
China. A soldier of fortune is that man called ben shalom bernanke (he looks
a little bit like Paladin / Ricard Boone … maybe not).] Federal Reserve
policymakers Tuesday ‘OPENED THE DOOR’ (emphasis/quotes added) to
new action to try to boost the economy. They just didn't step on in.
In new aid policy, Obama seeks to boost promising economies (Washington Post)
[ Wow! Just make sure defacto bankrupt america’s on the list and at the very
top at that, wobama, which means you’ll have to leave out that ‘promising’
part / criteria. Talk about out of touch and disconnected! You can’t make this
stuff up! ] President Obama will roll out his long-awaited policy on foreign
aid Wednesday, pledging to target U.S. assistance at a select group of
countries to help transform them into the next generation of emerging
economies, officials said.
Top economic adviser is leaving White House for Harvard (Washington Post)
[ Back to the league ivy filled vegetable gardens for you … dear Larry …
Riiiiight! … Sounds like a plan … for the other ivy vegetable leagers to step
up … and do a soft shoe or two … and back to the fold … as does the nation
… fold … I mean, really … when you look at the results of their failed
tenures … one has to start wondering about basic, general competence …
(evidencing a lack thereof, viz., dumbya bush, ‘no recession helicopter ben
b.s. bernanke, wobama the ‘changemeister’(riiiiight!), etc.. ] The departure
of Lawrence H. Summers will complete the turnover of three of President
Obama's four top economic advisers as the administration struggles with
the political fallout of a stubbornly weak economy.
Bob Woodward book details Obama battles with advisers over exit plan for
Afghan war (Washington Post) Drudgereport: WOODWARD DOES OBAMA:
KISS OR DISS? [ What strategy? … toward what end? … why, other than the
newly cultivated heroin trade, which of course is great for cash money sub-
rosa, which is great for the few, and of course, the war’s great for the
military complex but bad for the u.s. economy generally (resources literally
blown up). Win what? You see; for the defacto bankrupt american nation,
this is one of those lose, lose scenarios regardless of so-called outcome.
Then there the ‘what did wobama expect’ in keeping bush appointees, gates,
et als, etc., but there’s no question at this point that wobama’s bought this
war and has none to blame but his fool self.] WASHINGTON — Some of the
critical players in President Obama’s national security team doubt his
strategy in Afghanistan will succeed and have spent much of the last 20
months quarreling with one another over policy, personalities and turf,
according to a new book. The book, “Obama’s Wars,” by the journalist Bob
Woodward, depicts an administration deeply torn over the war in
Afghanistan even as the president agreed to triple troop levels there amid
suspicion that he was being boxed in by the military. Mr. Obama’s top White
House adviser on Afghanistan and his special envoy for the region are
described as believing the strategy will not work …’
Professorial president assigned 'homework' to advisers...
Critical players in national security team 'doubt strategy in Afghanistan will
succeed'...
Axelrod 'complete spin doctor'...
President of Afghanistan suffers from 'manic-depression' … [Wow! No
wonder he’s aligned with the u.s. … fits right in, one nutcase to another ] ...
Rahm cheers drone attacks: 'Who did we get today?'...
Mob’s man cuomo undecided on debating … how embarrassing for new
york … and their cuomo coma … ask cuomo how many mob prosecutions
he’s brought ...
Cuomo Caught Lying About Voting For Bloomberg... Developing...
POLL: USA Loses No. 1 to Brazil-China-India Market...
HOUSEHOLD NET WORTH DROPS...
IS THE RECESSION REALLY OVER? SIMON MAIERHOFER, ON TUESDAY
SEPTEMBER 21, 2010, 12:29 PM EDT ( link to all charts used in this article )
The National Bureau of Economic Research (NBER) - a panel of economists

entrusted with the responsibility to officially declare the beginning and end of
recessions - declared the end of this recession. But wait, amidst the sound of
popping champagne corks, the snore of complacency and a cheer leading media,
you can hear the economy's distress signals.
THE GOOD NEWS
But who likes to hear about gloom and doom. Let's focus on the good news. As
per NBER, the longest recession the country has endured since World War II
officially ended in June 2009 (see chart below). During this recession, the
economy has lost over 7 million jobs while the major market indexes a la Dow
Jones (DJI: ^DJI), S&P (SNP: ^GSPC), Nasdaq (Nasdaq: ÎXIC), and Russell 2000
(Chicago Options: ^RUT) lost well over 50% of their value. By declaring that the
recession ended 14 months ago, NBER takes advantage of the much-coveted
privilege of evaluating the economy in hindsight, as it did in December 2008 when
it declared that the recession had started 12 month earlier. (chart)
Investors don't have the luxury of placing trades based on hindsight and need to
rely on forward looking data, not the rear view mirror. Based purely on forward
looking indicators, the ETF Profit Strategy Newsletter predicted the biggest
counter trend rally since the October all-time highs on March 2, 2009 and
recommended buying long and leveraged long ETFs, such as the Financial Select
Sector SPDRS (NYSEArca: XLF - News), Technology Select Sector SPDRs
(NYSEArca: XLK - News), Ultra S&P ProShares (NYSEArca: SSO - News), Ultra
Financial ProShares (NYSEArca: UYG - News) and many others. Are forward
looking indicators now in line with NBER?
THE BAD NEWS
What does the NBER base its decisions on? To make its determination, the NBER
looks at figures that make up the nation's gross domestic product, incomes,
employment, and industrial activity.
GROSS DOMESTIC PRODUCT
Obviously, recent downward revisions to the GDP did not prevent NBER from its
assessment that the recession had ended. The chart below shows recent
revisions to GDP. (chart)
Telling the 15 million unemployed Americans that the recession has ended is like
telling a homeless person that real estate prices (NYSEArca: IYR - News) are
about to pick up. It's ironic at best and cruel at worst.
UNEMPLOYMENT
The chart below shows the real percentage of unemployed Americans expressed
by the U-6 unemployment data, published by the Bureau of Labor Statistics. With
unemployment near an all-time high, can the recession really be over? (chart)
CONSUMER SENTIMENT
It is said that consumer spending makes up about two thirds to three quarters of
the economy. What causes consumer spending? Money flow and confidence in
future growth are often the catalysts. Judging by the unemployment numbers,
money flow is limited. This no doubt has had an effect on consumer confidence.
The chart below shows the Consumer Confidence Index. If the recession is over,
why is confidence near an all-time low? (chart)
Friday's release of the University of Michigan's Confidence Index was another

blow against the economy. Based on this report, Americans planning to buy a
home have fallen to a five-month low. Also, Americans planning to buy a car
have dropped to the lowest level since December 2008, and 20% of Americans
incomes are at risk of deflating. Not only is the lack of spending power a practical
threat to any economy, it is also a statistical threat to future GDP numbers. A
piece of statistical news that fits into the picture of falling consumer confidence
is that the nation's poverty rate jumped to 14.3%
(datasource: U.S. Census Bureau). Poverty in the U.S. is defined by a family of

four living on less than $21,954 a year. Currently, 43.6 million Americans fall into
this category. But perhaps this doesn't make a difference, as the government is
counting on the faithful flock of economists that don't see their own demise and
the few thousand Wall Streeters' that cashed in on multi-billion dollar bonuses to
lift the economy.
THE SILVER LINING

Even though the NBER declared this recession over, it doesn't preclude the
occurrence of another recession. According to NBER, if the economy starts
shrinking again, it could mark the onset of a much feared but unexpected double-
dip recession. As the first chart shows, this happened in the early 1980s.
NO DOUBLE DIP
To Wall Street's cheerleaders, the worst-case scenario is that the economy is

stuck between a rock and a hard place as illustrated by this Bloomberg headline:
'Escaping double dip still means no relief for jobless.' As for investors, they seem
not to care much. Monday saw U.S. stocks (NYSEArca: VTI - News) rally by 1.5%.
International stocks (NYSEArca: EFA - News) and emerging markets (NYSEArca:
EEM - News) were up 1.5 -1.7%. Even European stocks (NYSEArca: FEZ - News)
were up, although the European Central Bank had to intervene to stabilize the
Irish bond markets on Friday. In other words, the ECB had to prevent another
Greece-style default. In fact, does not the emergence of yet another European
country defaulting, remind us of the February - April 2010 rally. This rally
occurred on ultra-low volume and against a backdrop of bad news. It then
stopped all of a sudden for seemingly no specific reason. On April 16, the ETF
Profit Strategy Newsletter warned: 'the pieces are in place for a major decline. We
are simply waiting for the proverbial domino to fall over and set off a chain
reaction.' The situation is similar right now. Even though stocks have broken out
of the 1,040 - 1,130 trading range, they have done so on low volume and
increased investor optimism. Within the past three weeks, the percentage of
bullish investors tracked by AAII has soared by 30.15%, to the highest level in
over a year. This doesn't mean that stocks can't inch up a bit further, just as they
did earlier in April, but a look at all pieces of the puzzle doesn't paint the picture
of a new bull market. The October issue of the ETF Profit Strategy Newsletter
evaluates the bullish and bearish potential of the market with a unique approach,
along with corresponding target levels and profit strategies.
Bulls Go to Extremes: Don't Buy the "Breakout", Sell It, Prechter Says Stocks
jumped Monday with the Dow rising 1.4% to 10,753 and the S&P gaining 1.5% to
1143, its highest close in four months. The S&P eclipsing 1130 for the first time
since late June would seem to confirm the long-awaited technical breakout for
the index, and could pull many reluctant investors off the sidelines. "Many
automatic buy and sell orders are set around market milestones such as these,
and investors watch those levels closely for clues about which way the market
may go next," the AP reports. But the wise move now is to sell this recent rally,
says Robert Prechter, president of Elliott Wave International. "I think we're getting
ready for another leg on the downside," Prechter says, citing evidence of what he
says are extreme levels of optimism, including:
• -- The most-recent AAII poll shows bearish sentiment at 24%, less than at
the Dow's peak in October 2007.
• Mutual fund cash positions being at record lows, which Prechter says
should be taken at "face value" rather than the result of massive
redemptions from equity mutual funds.
• The TRIN Index (a breadth indicator) at one of its lowest levels in recent
years, indicating extreme buying pressure of stocks at 52-week highs, i.e.
investors chasing momentum/performance.
In addition, Prechter notes volume has been punk during the rally in recent weeks
a sign, to him, that buyers lack conviction. The veteran market-watcher says the
current environment is similar to the 1930-31 period. "The market can make its
high while optimism makes a peak despite the fact you're going stair-step lower,"
he says. "What we had in May with the ‘flash crash' was the first wave down."
Prechter predicts these periods of downturns sandwiched around 4-5 months of
recovery "where people think we've hit the bottom" is likely to "go one for quite a
long time" until a true bottom is reached well below the March 2009 lows, much
less today's levels.
Macro Insights From Seth Klarman Seth Klarman, the legendary hedge fund
manager at Baupost is increasingly concerned about the macro investing
environment. With the retirements of several prominent hedge fund managers in
recent months he’s clearly not alone in his thinking. In a recent interview (see
here for the entire interview) Klarman provides some excellent macro insights
and explains why he is more worried about the world than he has been in his
entire career. Klarman echoes comments I have often made here. In effect, the
recovery has been almost entirely artificial and will result in unquantifiable future
threats. Klarman calls the current market a “Hostess Twinkie”:
A Hostess Twinkie is a confection that has made many childhoods

slightly happier, but it is composed of totally artificial ingredients. My
context, of about 6–12 months ago, was that virtually everything was
being manipulated by the government. Nothing was natural in the
markets. Interest rates were held at zero, the government was buying
all kinds of securities—notably, mortgage securities—and who
knows what else has ended up on the Fed’s balance sheet.
We have had lending programs—Troubled Asset Relief Program

(TARP), Cash for Clunkers, and even Cash for Caulkers. We just
don’t know the full extent to which investors have been manipulated.
But certainly, the government wants people to buy equities, to invest
so that the market will move higher, creating a wealth effect or at
least eliminating the negative wealth effect in order to make people
feel better about their situation, to restore a degree of optimism so
that the economy might recover.
I am worried to this day about what would happen to the markets, to

the economy if, in the midst of all these manipulations, we realized
that they are, in fact, a Twinkie. I think the answer is that no one
knows, including those in Washington. Will the economy continue to
recover and grow at a healthy rate or will we sink into a double-dip
recession? As we can all see, the high degree of government
involvement continues.
Of course, the USA isn’t the only country kicking the can. Klarman cites the
European bailout as another game of government kick the can:
The European bailout is gargantuan. I doubt it will work because it

kicks the can further down the road and is yet one more
manipulation that encourages people to own securities. It is almost
as if our government is in the business of giving people bad advice:
“We are going to hold rates at zero. Please buy stocks or junk bonds
that will yield [an inadequate] 5 or 6 percent.” In effect, it forces
unsophisticated investors to speculate wildly on securities that are
too overvalued.
All of this has Klarman more concerned than he has ever been. That’s a mouthful
from a legend like Klarman who has seen more than his fair share of cycles:
I am more worried about the world, more broadly, than I have ever
been in my career.
Like myself, Klarman believes there are unquantifiable repercussions from the
bailouts:
I am also troubled that we didn’t get the value out of this crisis that
we should have. The Great Depression led us to a generation—or
even two generations—of changed behavior. I grew up hearing about
how our grandparents had a “depression mentality.” It’s awful to
have a depression, but it’s a great thing to have a depression
mentality because it means that we are not speculating, we are not
living beyond our means, we don’t quit our job to take a big risk
because we know we might not get another job. There is something
stable about a country, a society built on those values.
In some sense, from the recent crisis we have developed a “really
bad couple of weeks” mentality, and that’s not enough to tide us
through, teach us to avoid future bubbles, and ensure a strong
recovery.
Klarman isn’t a macro expert (he’s a bottom up investor), but something just
doesn’t pass the sniff test with all these bailouts. How can the global economy
continually bailout the losers without ever allowing these excesses to truly pass
from the system? Klarman says we will eventually reach a tipping point:
A tipping point is invisible, as we just saw in Greece. In most

situations, everything appears fine until it’s not fine, until, for
example, no one shows up at a Treasury auction. In the meantime,
we can be lulled into thinking all is well, that the United States will
always be rated triple-A. Treasury Secretary Timothy Geithner
speaks as if—at least in his public statements—he has been lulled
into thinking that the United States will always be triple-A. That kind
of thinking guarantees that someday the United States will no longer
be triple-A. A sovereign deserves to be rated triple-A only if it has
valuable assets, a good education system, a great infrastructure, and
the rule of law, all of which are called into question by an eroding
infrastructure, a government that changes the law or violates it
whenever there is a crisis, and a legislature that shows no fiscal
responsibility. There is an old saying, “How did you go bankrupt?”
And the answer is, “Gradually, and then suddenly.” The impending
fiscal crisis in the United States will make its appearance in the same
way.
Klarman finds the current environment particularly difficult because many of the
hedges that have been working are more speculative in nature. He finds little
value in most commodities (with the exception of land) because commodities
offer no real cash flow and instead rely almost entirely on some future “greater
fool” buying the asset from you. Klarman makes an exception with gold,
however:
Gold is unique because it has the age-old aspect of being viewed as

a store of value. Nevertheless, it’s still a commodity and has no
tangible value, and so I would say that gold is a speculation. But
because of my fear about the potential debasing of paper money and
about paper money not being a store of value, I want some exposure
to gold.
Klarman sees all of this government intervention resulting in higher rates of

inflation:
I think the odds are low that such high inflation will happen in the
near future, but looking ahead five years, it becomes more likely,
although certainly not a 50/50 chance. With a very limited initial
outlay, I think a hedge like ours is a reasonable protection.
Ultimately, the downside of the current bailout fever comes in the form of an
intangible risk. Capitalism without losers is like Catholocism without hell.
Klarman sees no way of avoiding future collapses given that we’ve never actually
been forced to learn from our past collapses:
Essentially, the problem is that government intervention interfered

with the lessons investors needed to learn. Those who stared into
the metaphorical abyss are right back at it, with the possible
exception of college endowments, for whom the pain has been long
lasting because of their spend rate. Almost everybody else is
drinking the Kool Aid again, and it is very troubling. We could have
another serious collapse, and people would again not be prepared
for it.
Secular Bear Market Myths, Part 2 Claassen In yesterday's Secular Bear Market
Myths Part 1 we debunked the myth that a secular bear market requires poor
earnings growth. In part two, we illustrate the typical price pattern of a thirteen to
sixteen year secular bear market and use that pattern to provide a near term and
long term Market Outlook. The market may be nearing a critical juncture. If you
want to know what to expect, read on ….
A Secular Pattern
Inflation Adjusted (Real) S&P 500 Index 1953-1991 (chart)
After adjusting for inflation, both the high inflation driven secular bear markets
and the deflation driven secular bear markets take on a more similar form. This is
especially true when a secular bear market is defined as the period between the
peak and trough of the average P/E ratio. Using the numbers on the above chart
we see that from the 1966 peak in the P/E ratio [1] (see chart of Shiller’s CAPE in
first report) to the 1982 low [4] was sixteen years. Both the nominal and real price
peak was in late 1968, thirteen years from the 1982 low. This is indicative of the
typical secular bear market; a period of sixteen to thirteen years.
There are seven years between the two peaks [1] and [2] along with two major
declines [3]. After the second major decline, there is a relief rally [R], then a multi-
month trading range as a period of distribution, followed by a multi-year decline
to complete the bear market [4].
S&P Composite 1917-1951 with Present S&P 500 (chart)
We can see a similar pattern of behavior in the deflationary bear market of the
1930’s. Yes, the market overlay in orange is our present S&P 500. We will get to
that next.
Like the inflation adjusted 1970’s (and 1900-1921) the major highs and lows follow
a pattern. The entire period from 1929 to 1942 encompasses thirteen years. The
two major tops [1] and [2] are seven years apart. There are two major declines [3],
a relief rally [R] followed by a prolonged sideways period, and finally a decline to
complete the bear market [4].
The 2000 - 2016? Bear Market
Overlaid in orange on the above chart is the current S&P 500 with the P/E ratio
peak in 2000 lined up with the P/E ratio peak in 1929. Not surprisingly, the peak
[2] and troughs [3] all line up within a couple of months of their 1930’s
counterparts. It appears the rally from the March ’09 low was the relief rally [R]. If
our current S&P 500 follows the same path as these previous bear markets, we
should expect a prolonged sideways period and decline to final low of the bear
market sometime in-between 2013 and 2016. As illustrated in the historical chart
of the S&P Composite, when this secular bear market is complete the trailing
Shiller CAPE ratios should be under ten. The higher the earnings from now until
that time, the less the market will need to decline to complete this period and
move into the next secular bull market. Conversely, the lower the earnings, the
more the market averages would need to decline to meet their sub 10 trough in
the index P/E ratio.
Inflation Adjusted (Real) S&P 500 1959-1983 with Current Inflation Adjusted S&P
500 (chart)
As nicely as the current bear market has fit within the profile of the past, the chart
above and the chart below should serve as signs of caution not to expect too
tight a correlation between past markets and the present. The patterns of past
market behavior are a good guide; they help us understand the environment we
are in and keep our expectations in check. But the turning points that look so
perfect on the monthly charts have still been accurate only within a +/- of several
months. In hind sight that does not seem like much, in real time two or three
months can feel like an eternity.
Also, each secular period is unique, and the market will respond to that
uniqueness in a manner different than what our past market roadmaps might lead
us to expect. For example, when we line up the current market with the 1966 P/E
ratio peak (above), although the major turning points line up, there is a unique
rally peak in 1968 (see above chart). That difference can be explained by the
difference between inflation and deflation based bear markets. But, for now, the
current environment is not completely identical to either the pure inflation or
deflation periods.
Obviously, current inflation is not the least bit similar to the 1970’s and despite
deflationary pressures; this is not the Great Depression. We do believe that this
cycle will have more in common with deflationary cycles than inflation. If we look
back again at the P/E chart on (reposted below) we can see that secular bear
markets have cycled between a falling interest rate and falling P/E environment,
and a rising interest rate falling P/E environment. The current economic
background is more similar to the deflationary period. In previous Market Updates
we have illustrated how, since 1998, the intermarket correlations have been
indicative of a market that fears deflation more than inflation, which fits very well
with this cycle.
P/E Ratio (CAPE) for US Equities and Long Term Interest Rates: source RJ Shiller
(chart)
NASDAQ Composite Aligned with Nikkei 225 1984-2010 (chart)
Japan is another example of a deflationary bear market. We have shown the
above chart before, with the overlay of the NASDAQ Composite matching the year
2000 peak of the NASDAQ and the 1990 (December 1989) peak of the Nikkei 225.
The major turning points fit very well with the pattern, but the volatility between
the turning points is very different. For example, where our S&P Composite
model suggest a modest decline followed by a sideways period (after [R]), the
Nikkei 225 collapsed without pause. It is very unlikely that the NASDAQ
Composite will decline at same rate with which the Nikkei 225 declined at this
stage of their bear market. It is more likely that the sharpness of the Nikkei’s
decline from 2000 [R] to 2003 [4] will be a feature unique to their bear market. We
should also note that it is apparent from our model that Japan’s bear market
should have been complete in 2003 [4]. The Nikkei’s rally from the 2003 low to
2007 high was an astounding 140%! But, the decline that followed, and the
current persistent deflation shows they have not yet pulled themselves out of
their economic bear market. Is this because of incorrect monetary or fiscal policy
decisions? Have we made similar policy mistakes? We don’t know and won’t
know until after the fact.
Thus, while we have a good road map to follow, we must still diligently monitor
our indicators and market conditions. It is more important to follow what the
market is doing, than what it should do relative to any predictive model.
Short Term Outlook
The above pages were originally written in June, 2010. The addendum below is a
short term outlook as of September 19, 2010. (chart)
Current Dow Jones Industrial Average Daily with NASDAQ 100 Year 2000 Overlay
…’
Homebuilder Confidence Remains in the Dump
U.S. household net worth drops Reuters | U.S. household wealth fell by $1.5
trillion in the second quarter.
For the Unemployed Over 50, Fears of Never Working Again New York Times | A
growing number of people in their 50s and 60s are starting to worry that they
may be discarded from the work force — forever.
Gold Hits Another Record as Dollar Tumbles On Fed Announcement Kurt Nimmo |
Another example of the indispensability of gold as a hedge against the
bankster engineered economic implosion.
Fed Responds To Allegations Of POMO-based Stock Market Manipulation It is no

secret that the Federal Reserve, and its now semi-daily interventions in
market liquidity via ever increasing Permanent Open Market Operations (aka
POMOs, next on deck – Wednesday and Friday for a total of about $7-8
billion), is rather hell bent on creating the impression that the economy is
alive and well.
For Sale: Welcome to United States of Tent Cities As the mortgage crisis cuts
deep, real estate firms say over a million Americans may lose their homes to
foreclosure this year.
Gold Is Not Going Up: The Dollar Is Collapsing Jim Rickards on CNBC talks about
gold, the dollar and their relationship.
America Is Today In Worse Shape Than Japan During Its Lost Decade? BIS – the
central banks’ central bank – agrees that Americans are in worse shape than
the Japanese.
National / World
Biocratic Solution to Poverty and Disease? Eradicate the Human Jurriaan Maessen
| This is the religion of the scientific dictatorship in a nutshell.
Second Amendment Group Made Terror Threat List in Pennsylvania Kurt Nimmo |
Israeli company said violent militias would be at peaceful event held at the
Pennsylvania capitol.
Global Tax Scam Shifts From Climate Change To Poverty Paul Joseph Watson |
The elite are determined to rob the American people blind while creating a
slush fund for world government by any means possible.
Latest Vaccine Propaganda: It Prevents Heart Attacks Kurt Nimmo | Government

and Big Pharma are desperate to convince you to take their toxic vaccines.
American People To Congress: Shut Up And Get The Hell Out Of Office
Americans are sending a pretty clear message to Congress members who
have continually pushed hugely unpopular legislation this election year –
shut up and get the hell out of office.
Israeli Company Listed Second Amendment Group As Terror Threat Last week it
was reported that Tea Party activists had made the Pennsylvania terror
threat list generated by an Israeli company. Now we learn that Second
Amendment as well as anti-tax activists were also snooped by the state with
the assistance of he Institute of Terrorism Research and Response.
Discover Your Humanity And Live Forever In a deeply considered and

impassioned call for the re-energisation of humanity, Alex describes how
our species is still only in a pre-embryonic stage, and that our intellect is
being shaped and limited by force fed distractions.
Average American Works 231 Days To Support Government With Taxes “The
average American worked 231 days just to support government, which
consumes 63.41 percent of national income.” Yow! The government
consumes two-thirds of income! We’re freaking doomed!
Jimmy Carter Says US More Polarized Than During Civil War “This country has
become so polarized that its almost astonishing…. Not only with the red and
blue states… President Obama suffers from the most polarized situation in
Washington that we have ever seen – even maybe than the time of Abraham
Lincoln and the initiation of the war between the states.”
Global Tax Scam Shifts From Climate Change To Poverty As the science behind
global warming becomes increasingly discredited and its proponents are
exposed as eugenics-obsessed control freaks who care only about
destroying freedom, the effort to make Americans pay a global tax has
shifted from the justification of climate change to that of poverty.
President Ahmedinejad Threatens U.S. With War ‘Without Boundaries’ Iranian

President Mahmoud Ahmedinejad warned the Obama administration today
that if Iran’s nuclear facilities are attacked, the U.S. will face a war that
“would know no boundaries.”
China tells U.S. to keep out of South China Sea dispute China told the United
States not to interfere in a regional dispute over claims to the South China
Sea, saying it would only complicate the matter. China has been increasingly
strident in asserting its territorial claims, especially maritime ones.
Gulf States Order $123 Billion of U.S. Weaponry to Counter Iran, FT Says [ See,
say the neocons / military industrial complex, who says that war, rumors of
war, and threats of war don’t pay dividends they say … riiiiight! The guns v.
butter argument. Sounds like a plan … for continued national bankruptcy
and conflagration. Bad economics. ] Arab states around the Persian Gulf
have ordered U.S. weapons systems worth a total of $123 billion “to counter
Iran’s military power,” the Financial Times reported.
Riot Police On Standby, As Greek Truckers Form Massive Protest Blockade The
news out of Greece continues to suggest that every attempt to reform the
economy and liberalize key sectors is being met with serious resistance.
Nato helicopter crash kills nine in Afghanistan’s bloodiest year Telegraph | The
crash early on Tuesday in Zabul province brought this year’s death toll to at
least 529.
Sen. DeMint champions 'tea party' candidates (Washington Post) Bill Maher
digs up O'Donnell 'witchcraft' clip (AP) [ She’s done! There’s no excuse for that!
None! ] ‘… "I dabbled into witchcraft. I never joined a coven," she said. " ... I hung
around people who were doing these things. I'm not making this stuff up. I know
what they told me they do," she said. "... One of my first dates with a witch was
on a satanic altar, and I didn't know it. I mean, there's little blood there and stuff
like that," she said. "We went to a movie and then had a little midnight picnic on a
satanic altar." …’ Occult Obsessed Elite Claim Christine O’Donnell is a Witch
Kurt Nimmo | The corporate media, the propaganda organ of the global elite, sets
its sites on Delaware’s Christine O’Donnell. … Sorry kurt … there’s no excuse for
that … she’s done! An O'Donnell repeat is unlikely (Washington Post) There are
at least three reasons to be skeptical of Del. Senate candidate's ability to win.
OPINION: O'Donnell's forgivable sin? | Politerati Rough Sketch: 10 reasons
O'Donnell may be a witch
Justice: FBI improperly opened probes (Washington Post) [ Well, I just hope
they’re as zealous (in probing readily discernible crime) with regard to my RICO
matters and the corruption in the (judicial / legal) process since, in the final
analysis, it will have been the corruption within that will have brought the nation
down irrevocably and totally ] .
September
13, 2010

Dear Sir:


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) ******** (cell phone)
The ritual of sound-bite economics (Washington Post) Samuelson | Opinion
‘The right's sweeping indictment of Obama for the sluggish recovery is
wildly exaggerated. It is not, however, entirely misplaced … Rhetorical
claims grow more partisan and self-serving. We are now deep in this
process. President Obama's policies either averted another Great
Depression -- or have crippled the recovery.’ [ How ‘bout neither is correct:
We’re still in what some have even referred to as ‘hyperinflationary (to come
from over-printing of currency) depression; and, incurring insurmountable
debt / debt service to give a better feel pre-elections, is a far cry from
economic recovery, particularly owing to the irrevocable structural shift that
has occurred. ]
That nest egg is feeling fragile (Washington Post) [ Fragile indeed! And, much
more fragile than most realize owing to obfuscation, manipulation, and
outright fraud in the this continuing year of desperation; politically,
economically, financially, and legally. YAHOO [BRIEFING.COM]: ‘The S&P
500 pushed through technical resistance to set a fresh four-month high on
Monday. There were no catalysts or headlines to account for the climb. Only
a bullish bias among market participants underpinned the move. Stocks
made only modest gains in the early going. Most traders took their cues
from Europe, where the major bourses staged strong gains as concerns
about sovereign debt subsided. Early action was generally consistent with
the relatively cautious trade that typically precedes an FOMC
announcement, the latest of which will be released tomorrow afternoon.
Though no rate actions are expected tomorrow, many will look for changes
in the verbiage of the actual the FOMC statement to give clues about where
policy might be headed …’ Riiiiight … changes in VERBIAGE … in other
words, b*** s*** alone … Come on! … you just can’t make this stuff up …
again! (the no-recession fed, then nation-bankrupting spending, then just
before election ‘recession over’ … the recession that’s a depression that
never ended and there’s desperation in the air … and the the frauds on wall
street are taking advantage of the pre-election b*** s***) … the new ‘churn
and earn fraud they’ll get their commissions again on the way down’ … THIS
IS A GREAT OPPORTUNITY TO SELL / TAKE PROFITS SINCE THERE’S
MUCH, MUCH WORSE TO COME! ]Discouraging returns over the past
decade and a sputtering economy that shows few signs of reviving soon are
leaving many families confused and frustrated over how to secure their
financial future.
Recession ends, anxiety lingers (Washington Post) Come on! This is typical,
pre-election, fraudulent wall street, full moon b*** s*** ; you know, like the no
recession … just more defacto bankruptcy of the nation to tide / smooth things
over! Obama confronts deepening angst from Americans who have little faith
that the recovery is for real.
I finally saw ‘Avatar (2009)’ and felt compelled to put this on the ‘record of posts’.
A previous post (infra) referenced that well proportioned, comely, oscar-
winning giant of a woman, Kathryn Bigelow, who did the timely oscar-
winning piece, ‘Hurt Locker’, which from my longstanding opposition to the
Iraq, now Afghanistan, etc., illegal debacles further bankrupting this
already defacto bankrupt nation, was laudable from my perspective if only
to point out and emphasize the insanity of same (much like ie., the
masterful works ‘Apocalypse Now’ and ‘Platoon’ vis-à-vis Vietnam, albeit
after the fact). I was disappointed to hear James Cameron talk up NASA as
if it wasn’t the antithesis of his theme as written in ‘Avatar’ inasmuch as
NASA is but a CIA / Military / Industrial complex boondoggle, fraud, and
ultimately that militarization of space vehicle/thing for the lunatics at ie.,
the CIA, NSA, Pentagon, some halls of congress, etc.
[http://www.albertpeia.com/UFOetryWeNeverWentToTheMoonPNTV.wmv
http://www.albertpeia.com/moonfraud.htm ] . I know he’s intelligent, so
one may infer he’s one of those ‘do as I say but not as I do’ types in
reverse; or, a hypocrite. I’ve seen so many films that I comfortably say
without boast or exaggeration that I’ve probably seen all the films in the
history (excepting a very few foreign language films) of film worth seeing
and then some, and including those by the greatest directors. I previously
wrote on my site, ‘I happen to like and respect film as a rich medium which
presents large amounts of audio, visual, and thematic information which
can be processed in relatively small amounts of time, etc..’ My hat’s off to
Kathryn Bigelow; but that said, I must ask what the ‘Academy’ was
thinking, or smoking, in overlooking what I believe to be the greatest film
ever made thus far in the history of film. Imaginative like no other before it,
visually, audibly, and uniquely spectacular while profound in thematic
message, and superbly directed, it is disheartening that one might only
explain this misstep by the ‘Academy’ which belittles and questions the
Academy’s credibility, very existence and prestige as a reluctance to grant
Mr. Cameron a second great cinematic achievement of epic proportion
(which of course, in reality, they cannot do). Gasoline prices hit 8-month
low (Washington Post) [ Strange days indeed. There was a time not long
ago that the same news would engender a ‘glass-half-full’ spin for a
fraudulent wall street rallying point. At the same time, higher oil prices one
of those reasons for selling into the bubble. Today, higher oil prices day to
day provide a ‘glass-half-full’ spin for a fraudulent wall street rallying point
that drives the oils (stocks) higher. Yes, that’s how bad the economy really
is. (Not a reference to ‘Strange Days’ the interesting film from that
impressive oscar-winning giant (amazon) of a woman, Kathryn Bigelow,
which sported a cast that included Tom Sizemore which of itself meant
strange indeed.) ].
Yes! It is a full moon with predictable lunacy from the lunatic frauds on wall
street!
Gerald Celente: US Economy = Depression Famous investor and billionaire

George Soros referred to the US economy as “blah,” saying he expects a further
slowdown. US President Barack Obama has insisted however that the US
economy is heading in the right direction. Gerald Celente, the director of the
Trends Research Institute said the economy is not just blah, it’s in a depression.
It’s the summer of the greatest recession,” he said.
Too Much Liquidity Creating New Investment Bubbles … Again?
20 Signs That The Economic Collapse Has Already Begun For One Out Of Every
Seven Americans The Economic Collapse | This year, millions more
Americans will discover that the music has stopped playing and they are left
without a seat at the table. ‘ … The following are 20 signs that the economic
collapse has already begun for one out of every seven Americans…..
#1 The Census Bureau says that 43.6 million Americans are now living in poverty
and according to them that is the highest number of poor Americans in 51 years
of record-keeping.
#2 In the year 2000, 11.3 percent of Americans were living in poverty. In 2008,
13.2 percent of Americans were living in poverty. In 2009, 14.3 percent of
Americans were living in poverty. Needless to say the trend is moving in the
wrong direction.
#3 In 2009 alone, approximately 4 million more Americans joined the ranks of the
poor.
#4 According to the Associated Press, experts believe that 2009 saw the largest
single year increase in the U.S. poverty rate since the U.S. government began
calculating poverty figures back in 1959.
#5 The U.S. poverty rate is now the third worst among the developed nations
tracked by the Organization for Economic Cooperation and Development.
#6 Today the United States has approximately 4 million fewer wage earners than
it did in 2007.
#7 Nearly 10 million Americans now receive unemployment insurance, which is

almost four times as many as were receiving it in 2007.
#8 U.S. banks repossessed 25 percent more homes in August 2010 than they did
in August 2009.
#9 One out of every seven mortgages in the United States was either delinquent
or in foreclosure during the first quarter of 2010.
#10 There are now 50.7 million Americans who do not have health insurance.
One trip to the emergency room would be all it would take to bankrupt a
significant percentage of them.
#11 More than 50 million Americans are now on Medicaid, the U.S. government
health care program designed principally to help the poor.
#12 There are now over 41 million Americans on food stamps.
#13 The number of Americans enrolled in the food stamp program increased a
whopping 55 percent from December 2007 to June 2010.
#14 One out of every six Americans is now being served by at least one
government anti-poverty program.
#15 California’s poverty rate soared to 15.3 percent in 2009, which was the
highest in 11 years.
#16 According to an analysis by Isabel Sawhill and Emily Monea of the Brookings
Institution, 10 million more Americans (including 6 million more children) will slip
into poverty over the next decade.
#17 According to a recently released Federal Reserve report, Americans

experienced a $1.5 trillion loss in combined household net worth in the second
quarter of 2010.
#18 Manufacturing employment in the U.S. computer industry is actually lower in

2010 than it was in 1975.
#19 Median U.S. household income is down 5 percent from its peak of more than
$52,000 in 1999.
#20 A study recently released by the Center for Retirement Research at Boston
College University found that Americans are $6.6 trillion short of what they need
for retirement … ‘
Black September Postponed, New Month Yet To Be Determined Shell ‘… US

markets have to assimilate notes from the FOMC meeting and various housing
reports this week. Today, the National Association of Home Builders Index came
in at 13, unchanged from the previous month. With 50 a neutral number, there
was no optimism here. Tomorrow US building permits and housing starts will be
announced. With US home seizures and bank foreclosures rising to records, and
banks offering these home in competition with new homes, new home builders
may be relying upon divine intervention to assist with their sales…’
Major Indices Up Against the Wall ‘ … Bad News:
Oil dropped to a two week low on concerns for global growth.
Ireland and Portugal were back in the news with the Irish/German Bund spread
reaching record highs along with the cost of insurance on their debt; the story
was the same in Portugal and these developments helped to drive the Euro down
against the dollar.
Barclays Bank (BCS) issued a memo saying that Ireland may need IMF help, a
view that was promptly and vigorously denied by the Irish government, but the
markets seemed to rebuff those denials as gold reached a new record high.
On the home front, Fed Ex (FDX) reported seeing slower growth ahead and on
Friday we saw our 125th bank failure for the year.
The New York Empire Manufacturing Index posted a huge miss for September,
coming in at 4.1, down from a previous 7.1 and consensus estimate of 6.4
Industrial production declined in August to +0.2% from +0.6%.
On Friday, an unexpected drop in the University of Michigan Consumer Sentiment

index to 66.6 for September took that index to its lowest level in more than a year.
Unemployment remains at a quarter century high while in 2009, the U.S. poverty
rate was the highest since 1994, with 14% of Americans living below the poverty
line.
In the all important real estate market, Realty Trac reported that bank
repossessions hit a record high in August and now one out of every 380 homes in
America are in some phase of the foreclosure process. There is now a three year
supply of distressed homes on the market and this comes against the backdrop
of household wealth declining 2.8% in the second quarter and the lowest median
household income since 1997.
The lumber industry is an important facet of the U.S. economy and is reflective of
the state of the housing industry. This week the Western Wood Products
Association reports that 2009 was its worst year on record and that 2010 timber
sales and production could be even worse. In 2005, the U.S. had a record 2.1
million housing starts that dropped to 555,000 in 2009, the lowest number of
starts since World War II.
All of this would lead to the obvious conclusion that we could expect still lower
home prices ahead.
What It All Means
From a technical standpoint, the markets are poised for a significant decline and
from a macro standpoint; significant risks are inherent in the slowing economy
and problems in Europe heating up yet again. Seasonality also points to
increasing danger as September and October tend to be treacherous months for
market declines.
Furthermore, mutual fund cash levels are at record lows and this phenomenon
was also in play before both the 2000 and 2008 market meltdowns. With not much
gas left in the tank and an ominous macro environment, it’s hard to make a
bullish case in the weeks ahead.
However there’s always the possibility for upside surprises from resilient
earnings reports and ever present, not so invisible hand of government
intervention here and abroad.
A sustained breakout higher will likely lead to a significant rally while failure here
will likely lead to a significant correction to test recent lows.
The most likely probability is for a move lower and Wall Street Sector Selector
remains in the “Red Flag” mode, expecting lower prices ahead.’
How Wall Street Manipulates the News...And Investors Shaefer Wall Street’s
business model depends upon two factors:
(1) Keeping you interested enough in the markets to leave your cash with them so
they can float it, make a return on it higher than the one they pay you, and use
your cash to convince the regulators that they have enough in “assets” to borrow
money to expand their own proprietary trading, and...
(2) Keeping you trading. The easiest way for them to do this is to slant the news
favorably for a few weeks to a few months, then slant the same or similar news
unfavorably for a few weeks to a few months. This way, they get you to buy on
their alleged good news, then sell when the news “turns bad” and hopes are
dashed. That gives them two commissions instead of one. Done over the course
of a year, it gives them dozens rather than one or two.
A recent case in point is the current rally based upon the fact that the ISM
Manufacturing index rose from 55.5 to 56.3, an inconsequential amount not much
bigger than a rounding error, from July to August of 2010, an inconsequential
time frame too short to measure anything meaningful. The following week, the
ISM Non-Manufacturing Index (“services” rather than manufacturing) fell a rather
more consequential 54.3 to 51.5, its lowest reading since January, a rather more
consequential time frame. Since Services comprise three-quarters of US
economic activity, one might think this would have been cause for concern. But
the news was buried on page 16 because Wall Street wants us buying now, not
selling. Once they have their shorts in place (today? tomorrow?) so they can
profit both from their short positions and from retail investors’ panic selling and
the commissions that flow only from activity, you’ll find “the news” has magically
turned bad again. Then, after they have your commission dollars and their profits
from short-selling, they'll spin the news positively again. It’s a classic example of
Lucy van Pelt whisking the football away from Charlie Brown every time he gets
th-i-i-s close to actually kicking it through the uprights. But you don’t have to play
along! Stand back from the daily barrage of data and “commentary” on the data
and you’ll see the entire process more clearly. And if you agree, you might take a
look at selling into euphoria and buying into despair, as we try to do. The current
outlook is supposedly nothing but lollipops and rainbows, so we are now short
via ProShares' inverse ETFs: S&P 500 (SH), Emerging Markets (EUM), and Russell
2000 (RWM). I expect a rally based upon real, versus manufactured, slanted and
spun, news, this fall. Throwing out the current crop of ne’er-do-wells in Congress
alone should be good for a few hundred points on the Dow. But, personally, I
don’t see that rally mounting from 10,600. No, Wall Street needs to terrify the
public one more time, so they can cover their short positions and buy cheaply as
the public sells. A decline below 10,000, possibly well below 10,000, is in their
interest before the next big rally. Do your own due diligence – stand aside and
watch the manipulation of the silliest sorts of news like: “Only 450,000 newly-
unemployed this month in America! Economists had predicted 460,000!! Buy!!!
Buy!!!!” And if you agree, take a look at the above and other inverse ETFs. I
imagine they’ll be very good to us over the next few weeks or couple months…
Author's Disclosure: We and those clients for whom it is appropriate own or are
purchasing SH, EUM, and RWM.
The Fine Print: As Registered Investment Advisors, we see it as our responsibility

to advise the following: we do not know your personal financial situation, so the
information contained in this communiqué represents the opinions of the staff of
Stanford Wealth Management, and should not be construed as personalized
investment advice. Past performance is no guarantee of future results, rather an
obvious statement but clearly too often unheeded judging by the number of
investors who buy the current #1 mutual fund only to watch it plummet next
month! We encourage you to do your own research on individual issues we
recommend for your analysis to see if they might be of value in your own
investing. We take our responsibility to proffer intelligent commentary seriously,
but it should not be assumed that investing in any securities we are investing in
will always be profitable. We do our best to get it right, and we “eat our own
cooking,” but we could be wrong, hence our full disclosure as to whether we own
or are buying the investments we write about.’
The Mega-Bear Quartet and L-Shaped 'Recoveries' Doug Short I retired this chart
series in early August in deference to my preferred inflation-adjusted series that
aligns the S&P 500 2000 high with the Nikkei peak in 1989. Here's an update of
the retired series by special request.
This chart series overlays the current S&P 500 with the L-shaped "recoveries"
after the Dow Crash of 1929, the Nikkei 225 after Japan's 1989 bubble, and the
post Tech Bubble NASDAQ. Click the chart below for a larger version and use the
links to see various comparisons. [chart]
I've also included an updated two-decade inflation-adjusted chart, which gives us

a fascinating visualization of the impact of inflation on long-term market prices.
The higher the rate of inflation during a bear market, the greater the real decline.
Compare, for example, the peak of the Dow rally in year seven with the same peak
in the two-decade nominal chart. The difference is the result of deflation during
the Great Depression.
It's rather stunning to see the real (inflation-adjusted) decline of the Nikkei, two
decades years after its crash. The recent lows rival the traumatic Dow bottom in
1932, less than 3 years after its peak.
These charts remind us that bear markets can last a long time. And it's not
necessary to go back to the Great Depression for an example.
[See also my preferred version, which puts the start of the current secular bear in
2000 with the popping of the Tech Bubble. In inflation-adjusted terms, the S&P
500 reached its all-time high in March 2000. Although the nominal high in October
2007 was higher, the "real" high was not.]
Note: These charts are not intended as a forecast but rather as a way to study the
today's market in relation to historic market cycles.
The Analysts Are Starting to Get Silly Moenning In doing my weekend research,
I came across a couple of items that reminded me why I am such a cynic:
First, beware of "Conventional Wisdom": I believe it is safe to say that it is widely

accepted that Merger & Acquisition (M&A) activity is generally viewed as a
positive. That it reflects a view that "stocks are cheap" and that the act of buying
represents a source of demand. While true to some degree, I found the following
points from an opposing view to be interesting:
• M&A activity is not a sign that corporate managements are becoming more
positive regarding the future. It is, in fact, an indication that those same
managements are viewing the growth prospects of their existing markets
as diminished if not minimal.
• Many studies have shown that mergers, more often than not, do not work
out as expected and do not achieve the results touted by the acquiring
managements at the time they are concluded.
• Mergers almost always result in "duplications of effort" and thus lead to
layoffs of personnel. More people losing their jobs in the midst of the
current recession is certainly not going to be helpful to the economy.
Here are some interesting points; I'm sure you'll agree:

Second, in this week's Barron's I came across the following excerpt from "The
Weekly Speculator" (date tagged Sept. 16) in the Market Watch Section. I use this
only as an example, and not as a general criticism of this newsletter. The excerpt
reads in part as follows:
...but it is our belief that recent months have seen a data cycle play
out, rather than a genuine moderation of economic activity. Support
for this view has certainly been delivered in recent weeks by a
sudden firming of US economic data, which has consistently been
above consensus since late August.
Really?
It seems to me that housing sales have collapsed since the the "Home Buyer
Credit" ended. Automobile sales cratered after the "Cash for Clunkers" program
finished. Inventories are building again, which may very well not be a sign of
confidence, but simply overstocking. Consumer credit continues to contract.
Consumer sentiment is falling. I could go on.
Certainly there have been some positive reports, mostly it seems relating to
layoffs, jobless claims, etc. But in general, I read the data as bottom-bouncing at
best, and a re-intensifying contraction as a fair possibility. Examine the below
table of recent economic reports which I have compiled. It is by no means
complete, but hopefully will give a fair representation of recent economic reports.
You be the judge:
Recent Economic Data
REUTERS REUTERS
DATE REPORT ACTUAL ESTIMATE ACTUAL EVALUATION
9/17 UofM Conf 66.6 70.0 68.9 Worse
9/16 Philly Fed -0.70 3.8 -7.7 Missed
9/16 Jobless Claims 450K 455K 451K Better
9/16 Producer Price Index +0.4% +0.3% +0.2% Worst
9/15 Industrial Production +0.2% +0.2% +1.0% Worst
9/15 Empire Manuf Survey 4.14 5.00 7.10 Weakening
9/14 Business Inventories +1.0% +0.6% +0.3% Improving
9/14 Retail Sales +0.4% +0.3% +0.4% Better?
Wholesale
9/10 +1.3% N/A +0.1% Improving
Inventories
9/8 Consumer Credit -$3.6 billion -$3.5 billion -$1.3 billion Weakening
Widespread Signs
9/8 Beige Book N/A N/A Weakening
of Deceleration
9/3 Non-Farm Payroll -54K -90K -131K Better
9/3 Unemployment Rate 9.6% 9.6% 9.5% Flat/Worsening
9/2 Factory Orders +0.1% +0.3% -0.6% Weak
9/1 Domestic Car Sales 8.3M 8.7M 8.9M Weaker
8/25 New Home Sales 276K 340K 330K Record Low
8/24 Existing Home Sales 3.83M 4.65M 5.37M 15 year low
Relating to the decline in outstanding consumer credit, I believe that this is part
of the consumer getting their house in order. I feel that it will help build a solid
foundation from which a secular (long-term) economic advance could begin such
as the 50s and 60s and the 80s and 90s.
For the immediate future however, I am of the opinion that declining consumer
credit reflects an attitude by the consumer to spend less, and this will be a
damper to the economy in the short run.
Inventory build-ups are more of an iffy situation. If the reflect an unintended
accumulation of unsold merchandise, then a period of inventory reduction may
be forth-coming. It is this inventory reduction that concerns me and would be one
more near term negative.
So, what do take away from this? Just because it's written or spoken doesn't
make it true, even my statements. Take very little on faith, especially when it is
regarding the markets.
"Trust no one" - Walter Donovan to Indiana Jones, Indiana Jones and the Last
Crusade
Ron Paul “This Is Much Bigger Than The Great Depression!” Congressman Ron
Paul recently appeared on Fox Business’ The Tom Sullivan Show to discuss
the Tea Party, where real change comes from, how he began his study of
economics, and where he sees the economy going.
Worst U.S. Recession Since 1930s Ended in June 2009, Group Says Newsmax |
The worst U.S. recession since the Great Depression ended in June 2009,
the National Bureau of Economic Research said.
US Government ‘hiding true amount of debt’ News.com.au | The actual figure of
the US’ national debt is much higher than the official sum of $US13.4 trillion
given by the Congressional Budget Office.
U.S. Debt Actually $200 Trillion? News.com.au | The actual figure of the US’
national debt is much higher than the official sum of $US13.4 trillion ($14.3
trillion) given by the Congressional Budget Office.
The Banks Still Win On Friday, Congressman Ron Paul issued the following
statement about Obama’s appointment of Elizabeth Warren to head up the
creation of the new Consumer Financial Protection Bureau.
UK Proposes All Paychecks Go to the State First The UK’s tax collection agency
is putting forth a proposal that all employers send employee paychecks to
the government, after which the government would deduct what it deems as
the appropriate tax and the pay the employee’s by bank transfer.
Is China Starting To Cave? Yuan Hits New Record Against The Dollar Could China
be weakening its stance, a little, regarding the yuan?
Third world America In February, the board of commissioners of Ohio’s

Ashtabula County faced a scene familiar to local governments across
America: a budget shortfall.
US economy fears as consumer confidence plunges American consumers do not

expect to be feeling any more confident in six months’ time, a widely-
watched index revealed today, underlining the hurdles facing a recovery in
the world’s biggest economy.
Wall Street ‘casino’ spooks small American investors Michael McCaslin is wary
of investing his retirement funds in Wall Street. Its volatility and cryptic
trading techniques make him feel lost and unsafe, he says.
The Secret List Of 10 States With Soaring Poverty Rates The Government Doesn’t
Want You To See This is only half of the story though. Despite all these
methodological weaknesses I was curious enough to look for the list of
states with the worst and best poverty rates. I skimmed through their 88
page report but I could not find a single table breaking down their flawed
results by state. This must be top secret information, I said to myself.
The poor and impoverished turn to the forest RT’s Anastasia Churkina re-visits
Tent City – a homeless camp tucked away in the woods of New Jersey,
where over 40 people have been forced to live, with nowhere else to go.
Foreclosures and Poverty Across the Country, and DC Yawns Firedoglake | Too
bad people in poverty aren’t seen as much of a political constituency.
Global climate change industry is now worth more than $528bn THE global
climate change industry is now worth more than $528bn, powered by
China’s rise as one of the top nations for climate revenues.
American Businesses and Consumers are NOT Deleveraging … They Are Going
On One Last Binge
National / World
Globalists Plan to Dismantle Middle Class With UN Tax Paul Joseph Watson & Alex
Jones | Final move for world government and destruction of middle class
begins.
Fed Issues More Debt as Gold Rises Bob Chapman | What has happened to
America is that the private sector only is allowed to exist to keep banking in
business and to supply funds for government, bureaucrats, other criminals
and the elitists who actually run your country.
Pennsylvania Homeland Security Targeted Tea Parties Kurt Nimmo |

Pennsylvania’s Homeland Security said that two Tea Party rallies against
illegal immigration might attract “white nationalists.”
Government Prepares To Seize Paychecks As Statist Cancer Explodes Forget big

government – the same elite whose policies caused the financial collapse
are now ready to launch the next phase of their fascist takeover of the
economy – by forcing businesses to send employee paychecks straight to
the government, who would then deduct the “appropriate tax” before the
employee receives their wage, as the statist cancer of collectivism grows.
Alex Jones On What We Really Are Alex Jones explains how humanity has
become completely disconnected from its primitive survival instinct because
of modern consumerist culture, and how this is creating generations of
nihilistic, depressed, soulless people who have a death wish and are being
brainwashed to hate everything that is good and wholesome.
“Moderate” RINO Colin Powell Calls for Tidal Wave of Illegal Students Kurt Nimmo
| Establishment politico admits he has illegal immigrants working on his
house.
Most Influential Environmentalists Share Mass-Murder Advocating Green Nazi’s
Philosophy Our detailed report today on the now openly active and growing
eco-fascism movement, and in particular Finnish “philosopher” Pentti
Linkola, exposes a savage and despotic side to the environmental agenda.
Global Warming Alarmist Calls For Eco-Gulags To Re-Educate Climate Deniers A

Finnish environmentalist guru has gone further than any other global
warming alarmist in openly calling for fascism as a necessary step to save
the planet from ecological destruction, demanding that climate change
deniers be “re-educated” in eco-gulags and that the vast majority of humans
be killed with the rest enslaved and controlled by a green police state, with
people forcibly sterilized, cars confiscated and travel restricted to members
of the elite.
NY Times edits Tea Party article after White House complains The Bush
administration spent years feuding with The New York Times but the Grey
Lady hardly ever backed down.
Global ‘internet treaty’ proposed The proposal was presented at the Internet
Governance Forum in Lithuania last week, and outlined 12 “principles of
internet governance”, including a commitment from countries to sustain the
technological foundations that underpin the web’s infrastructure.
British Government to Seize All Paychecks Paul Joseph Watson & Alex Jones |
Fresh round of economic fascism is about forcing us to beg big government
for handouts in return for our own enslavement.
Shut Up! You’re Disturbing the Elite Keith Johnson | Both the establishment left
and right working are in concert to stifle the steadfast American tradition of
dissent.
Global Warming Alarmist Calls For Eco-Gulags To Re-Educate Climate Deniers

Paul Joseph Watson | “Any dictatorship would be better than modern
democracy,” says Finnish philosopher Pentti Linkola.
Obama Administration Financially Supports China’s Population Policies Through
UN Population Fund Jurriaan Maessen | Only days after his inauguration,
President Barack Obama announced he would resume funding for the
UNFPA and its ‘family planning’ activities in China and elsewhere around the
globe.
Historian: Mao Greatest Mass Murderer in World History Independent | Mr

Dikötter is the only author to have delved into the Chinese archives since they
were reopened four years ago.
Globalists Push World Transaction Tax At UN Summit Globalists representing 60

nations will meet at the UN this coming week to push a tax on world financial
transactions in the name of solving poverty and climate change, formally
launching a massive program to bankrupt the middle class and enrich the
coffers of global government.
Pennsylvania Homeland Security Targeted Tea Parties In November,

Pennsylvania’s Homeland Security issued a bulletin stating that two Tea
Party rallies against illegal immigration might attract “white nationalists.”
The report was issued by the Institute of Terrorism Research and Response,
an Israeli company.
Members of U.S. platoon in Afghanistan accused of killing civilians for sport The
U.S. soldiers hatched a plan as simple as it was savage: to randomly target
and kill an Afghan civilian, and to get away with it.
FDA won’t allow food to be labeled free of genetic modification: report That the
Food and Drug Administration is opposed to labeling foods that are
genetically modified is no surprise anymore, but a report in the Washington
Post indicates the FDA won’t even allow food producers to label their foods
as being free of genetic modification.
58% Of Americans Want A Third Party Americans’ desires for a third political
party are as high as they have been in seven years.
Poll: Vast majority opposes attack on Iran Fewer than one in five Americans
would support a US military strike on Iran if the Middle Eastern country
continued to pursue its nuclear program in the face of international
sanctions, a new poll indicates.
Defaults - Not Frugality - Account for Debt Decline ‘If you think that American
consumers have found religion when it comes to debt, you might be surprised by
what really is happening. From the WSJ:
First, consider household debt. Over the two years ending June
2010, the total value of home-mortgage debt and consumer credit
outstanding has fallen by about $610 billion, to $12.6 trillion,
according to theFederal Reserve. That’s an annualized decline of
about 2.3%, which is pretty impressive given the fact that such debts
grew at an annualized rate in excess of 10% over the previous
decade.
There are two ways, though, that the debts can decline: People can
pay off existing loans, or they can renege on the loans, forcing the
lender to charge them off. As it happens, the latter accounted for
almost all the decline. Over the two years ending June 2010, banks
and other lenders charged off a total of about $588 billion in
mortgage and consumer loans, according to data from the Fed and
the Federal Deposit Insurance Corp.
That means consumers managed to shave off only $22 billion in debt
through the kind of belt-tightening we typically envision. In other
words, in the absence of defaults, they would have achieved an
annualized decline of only 0.08%…’
Drudgereport: GREAT ESCAPE: HOUSE MAY ADJOURN '3 WEEKS EARLY’ [ Two
views: 1) Despite the rhetoric, spin, fake data, etc., the country is defacto
bankrupt and ashambles 2) At least they won’t be able to do more damage ] '
Prince Charles: 'I happily talk to plants, trees' … yeah, inbreeding eventually
takes its toll ...
UK Proposes All Paychecks Go to the State First… Wow! ...
Many businesses facing tax hike are too big to be labeled 'small' (Washington
Post) [ I almost hate to have to acknowledge the following as true given the
dire fiscal circumstances of this defacto bankrupt nation in light of the
profligate war spending and other pork, etc., but as was once said and
remains true, ‘you can please all of the people some of the time, and some of
the people all of the time, but you can’t please all of the people all of the
time’.]
Obama ignores critics, appoints Warren to set up agency (Washington Post)

[ There are a lot of reasons to be down on wobama’s failed presidency, viz.,
contrary to campaign rhetoric the continued wars / war spending, no
prosecutions of the the wall street frauds, etc., Warren’s appointment is not
one of them, assuming her actions match ofr exceed her words. ] In naming
Elizabeth Warren to set up a new consumer protection agency on Friday, he
swiftly delighted the liberal base of his party after months of
disenchantment.
How a touch of inflation could help economy (Washington Post) [ Wow! Just as I
began to think I’ve been too harsh on ‘Mr. wall street-glass-half-full-Irwin’, he
jars me from such complacency with the foregoing article. Mind you, such is
the balderdash that’s being spun these days since, whether desired or not,
hyperinflation is a-comin’ in a very big way and the so-called spin-doctors,
economy-destroyers are just posturing for a full-fledged swallowing of such
total b*** s*** (the over-printing of the evermore worthless fiat Weimar
dollaro currency assures that – I also believe the same has been used to bail
out holders of the still extant worthless toxic assets in the multi-trillions and
now marked to anything, ie., wall street frauds, insiders, etc.). Some of the
astute are saying ‘hyperinflationary depression’. Either way, the outlook’s
disasterous. I leave ‘Mr. wall street-glass-half-full-Irwin’ with the following
simple to remember axiom to guide his thoughts: ‘inflation bankrupts the
lender’ and all that such entails. ]Inflation would make the heavy debt that
Americans carry a bit more manageable as wages rise but the amount owed
stays the same. And it would create more incentive for businesses to invest
their cash rather than sit on it.
WHAT YOU SAID: WHAT YOU SAID (Washington Post) ‘ Ralph Novak Lincoln,
Calif. I retired in 1983 after 24 years as an Air Force officer and retired again from
DoD as a GS-15 in early 2005 after 20 years of service and moved to Northern
California in 2006’. … ‘Yeah, I'm not rich, but my out-of-work neighbors who used
to have household incomes of $300K to $500K and house payments of $5K to $8K
a month look at me with a lot of envy. I worked hard, saved the TSP max and am
thankful that my wife took the long view and pressed me to stay with the federal
government. It's hard to see what monetary value there is in spending an entire
career as a GS employee when you are working long, stress-filled days and years.
But the first thing you should do after retirement is to go to your next high
school/college reunion and see how the rest of the world is doing.’ [What a
typical pathetic loser this guy is; and typifies that government employee attitude
of indispensability when in fact they are not only superfluous and expendable,
but actually a substantial drag on the nation but are a positive in one respect …
adding to the nations insurmountable debt; ‘long, stress-filled days and years’ …
don’t make me laugh! He forgot to say that incompetent (and corrupt, etc.)
government types like him, living off the ever expanding bureaucratic t*t (bushes
are a great example as well, etc.) have played a huge role in creating the
deplorable conditions and debacle the defacto bankrupt nation is now facing. ]
Secretary of stand-up: Corny Washington jokes? Robert Gates has a million of
'em. (Washington Post) [ Could it be that’s because he is a joke. Certainly his
prognosticating continues to be … a joke. Aw, well, what the heck, he’s an affable
killer from the CIA and he has resuscitated the heroin trade in Afghanistan, along
with protracted war, etc., after all … eh … cut him some slack … riiiiight! ]
Economists Herald New Great Depression The world is currently experiencing

the modern day equivalent of the Great Depression, according to a prominent
economic doom on a scale not seen since the 1930s.) , and my position, Nobel
Prize Winner Krugman’s, and that of demographer Dent … This is a global
and disgorgement imposed … Krugman: It's All Downhill From Here Cullen
Roche Love him or hate him Paul Krugman has been awfully right with regards to
the macro picture in the last few years. He’s one of the rare economists who had
the foresight to see the housing bubble and the likelihood of economic downturn
that would result from it. Krugman recently caused a stir when he said the US
outlook:


really is.

sustenance.

and 2012). ]
Our Best Minds Are Failing Us Newsweek | Policy and political debates still driven
by outdated economic theory have been racing out of control.
The Emerging Global Fed New American | The Federal Reserve has been a
nightmare for the American people. It inflates the money supply, thereby
devaluing already-existing money and placing a massive hidden tax on the
people via rising prices.
US ‘sees world influence declining’ amid economic woe BBC | There has been a
sharp rise in the number of Americans who believe the US role as a world
leader is on the decline, a survey suggests.
Accumulating Incongruities [ Bottom line in this article is that the author (and me)
doesn’t buy the labor / unemployment stats which have been skewed /
guesstimated to the up side which probably is no surprise given the abounding
desperation and proximity to the elections ]
Household Net Worth Plunges By Most Since Q4 2008, As Government Borrowing

Surges In other words, the net wealth of the US household continues to track the
performance of the stock market tick for tick. And one wonders why the Fed, per
Alan Greenspan’s admission, is only focused on ramping stocks up to all time
highs.
The Secret List Of 10 States With Soaring Poverty Rates The Government Doesn’t
Want You To See
This is only half of the story though. Despite all these methodological
weaknesses I was curious enough to look for the list of states with the worst and
best poverty rates. I skimmed through their 88 page report but I could not find a
single table breaking down their flawed results by state. This must be top secret
information, I said to myself.
The poor and impoverished turn to the forest RT’s Anastasia Churkina re-visits
Tent City – a homeless camp tucked away in the woods of New Jersey,
where over 40 people have been forced to live, with nowhere else to go.
Roubini Turns Bearish On Gold (Again), Suggests Taking Profits And Buying
Puts… Much Like He Did In December 2009 Rouibini has never been much of
a fan of gold. Which is why we were not too surprised when we read RGE’s
latest recommendation on the precious metal, which, as expected was to
take profits.
More Than a Third Say It’s Okay to Walk Away from Mortgage More than a third
(36%) of respondents believe “walking away” from the mortgage is
acceptable, according to a Pew Research Center survey released today.
9/11 Truth: Direct Engagement to Incite Public Inquiry Travis Crank | Too many
Americans now seem all too willing to forget, to allow the events
surrounding 9/11 to fall down the memory hole and just go on about their
daily business after nine years.
Take a Second Look at Christine O’Donnell Keith Johnson | Those who are serious
about ending the Fed must be just as serious about ending these wars.
Geo-Engineering: Killing Off The Useless Eaters Paul Joseph Watson | Injecting
the atmosphere with sulfate aerosols is a completely insane, untested and
dangerous proposal.
Pennsylvania Homeland Security Employed Israeli Company to Suppress

American Political Dissent Kurt Nimmo | Pittsburgh cops may have employed
Israeli company to squash dissent during the G20.
8-year-old expelled from two years of school for bringing toy gun in backpack
NBC Miami | The 8-year-old boy hasn’t been in school for a year and will
likely miss another year if the Broward County School Board has its way.
Drudgereport: Doomsday warnings of US apocalypse gain ground...
Audit: $2 million per stimulus job...
1 in 7 Americans lives in poverty...
50-year high...
Foreclosures Rise; Repossessions Set Record...
Gold hits new high...
US poverty on track to post record gain under Obama...
Last minute aid helps city dodge default...
MICHELLE IN 'HELL': 'CAN'T STAND' FIRST LADY JOB … (at least there’s some
reciprocity) ...
BREITBART Shock Audio: Facing 'Obligations' From Leadership, Democrat
Congresswoman Leaves Voicemail for Lobbyist Cash...
RASMUSSEN: First Post-Primary Poll, Coons winning in Delaware
Coons (D) 53% O’Donnell (R) 42%
Senators grill Geithner on China trade policy (Washington Post) [ When tiny tim
talks, God bless us everyone, people listen … Where did I here that slogan?
… Ah, that now defunct wall street brokerage … Careful tiny tim … you know
how easily offended the Chinese are … (Taiwan, Taiwan, Taiwan) … And
who’s going to buy the worthless american paper denominated in ever more
worthless Weimar dollaros, and what if they cash out now having already
lost hundreds of billions on same which cost their comrade / overseer his
job … etc. ]The Treasury Secretary signaled a tougher line on China as both
parties have expressed frustration with the administration's reliance on
negotiation in dealing with China's currency and trade policies.
Will light bulb manufacturing stay in the U.S.? [ Methinks it’s a bit late to be
asking that question. In fact, meknows it’s too late to be asking that question in
light of the irrevocable structural shift precipitated by those geniuses in
Washington, including among other helmsmen of this now titanic of a nation,
those ‘strategists’ in those hallowed halls of, ie., the cia, nsa, think tanks, sink
tanks, etc., and of course, those vaunted trade deals which include essentially all
branches of the corrupt u.s. government with complicit titans / ceos of american
industry with a time horizon defined by their latest compensation package / stock
option expirations as cheered by the wall street frauds who sold off / transferred
the technological capacity to do so; and, of course, the coup de grace, viz., that
thing called NAFTA that Ross Perot was vilified for opposing and warning
against. There is really nothing in america that can’t be produced cheaper
elsewhere. Then there’s the defacto bankruptcy of the nation when even more
corporate welfare / subsidies would be necessary to make such even remotely
possible. As for prospective purported technological advances / innovations,
from my view there’s only so much utility that can derived / squeezed from ‘hula
hoops’. ]
Bank got even more special help (Washington Post) [ Special help? … Talk about
euphemisms … LA, yes dudes, way (as they say in the valley! ] OneUnited, now
at the center of a House ethics probe, received TARP aid despite its poor health.
Warren to be tapped as adviser (Washington Post) [ Well, that about does it …
slam-dunk for the administration … yet another ivy leaguer who at least to her
credit has talked tough; but, show us the prosecutions … show us the money
(they took) ! Show them the jail walls! Handcuffs For Wall Street, Not Happy Talk
Zach Carter | The fraud allegations that have emerged over the past year are not
restricted to a few bad apples at shady companies — they involve some of the
largest players in global finance. ] Obama plans to tap Harvard law professor to a
special advisory role so she can help stand up a new consumer financial
protection bureau while avoiding a potentially vicious Senate confirmation fight.
Senate passes small business credit measure (Washington Post) [ Riiiiight! That
should do the trick! Besides … It’s an election year … time to celebrate … you
know, don’t worry, be happy … and what’s a paltry amount like that anyway for
defacto bankrupt america, an interest payment on the insurmountable debt
anyway … what the heck! (Economists Herald New Great Depression , see infra) ]
The bill creates a $30 billion government fund to help open lending for credit-
starved small businesses, cut their taxes and boost federal loan programs for
them.
1 in 7 Americans live in poverty, Census says (Washington Post) [ Wow! Sounds

like a plan! Carry on wayward ‘no recession helicopter ben b.s. bernanke,
and mr. guns instead of butter as promised wobama’, et als. Workin’ like … a
plan! Census Reveals 45m Americans Living in Poverty One in seven
Americans is living below the poverty line, it was revealed yesterday. With
45mn Americans officially designated as poor, the US census figures reflect
the worst decline in living standards for more than half a century. ] Number
of people living in poverty and lacking health insurance rises; ranks of
working-age poor last year reaches highest level since at least 1965.
(Economists Herald New Great Depression , see infra)
Clinton wraps up Israeli, Palestinian talks - for now (Washington Post) [ That’s a
wrap (Hollywood speak), or just a lot of crap (reality). Well some celluloid
facetime (hill, I said celluloid, not cellulite), appearance of doing something (not).
U.S. urges Arab states to drop israel nuclear treaty demand Reuters Oooooh!
Wow! Sounds like a plan! … For world conflagration … Another step toward
nuclear prone middle east … israel should be exempt because ….. ‘US – Israel’s
partner in crime, not a referee’ … You really can’t make this stuff up; the
preposterous s*** coming out of america! ]The U.S. envoy to the UN atomic
watchdog urged Arab states to withdraw a resolution calling on Israel to sign an
anti-nuclear arms treaty, warning it would send a negative signal to Middle East
peace talks. Israelis, Palestinians already broaching tough topics in talks,
envoy says (Washington Post) ‘US – Israel’s partner in crime, not a referee’
(Infowars.com) Israeli and Palestinian leaders are holding a new round of direct
talks. Bombshell: Barack Obama conclusively outed as CIA creation Wayne
Madsen | Investigative journalist Wayne Madsen has discovered CIA files that
document the agency’s connections to the lives of Barack Obama and his
mother, father, grandmother, and stepfather. ] RAMALLAH, WEST BANK -
Secretary of State Hillary Rodham Clinton on Thursday wrapped up three days of
intense Middle East diplomacy that produced good atmospherics but no sign that
an impasse over Israeli settlement construction has been resolved. (Alex
Brandon - AP)
Leading Economic Indicators Continue to Suggest Return to Contraction Is Likely
U.S. Economy "Gradually Deteriorating," Levy Says: Recession Likely in 2011
Philadelphia Manufacturing Index Falls
Foreclosures Rise; Repossessions Set Record CNBC | US foreclosure activity

rose in August from the previous month, and banks and lenders took ownership
from homeowners at a record pace.
Ten Reasons This Rally Is Ultimately Toast Wachtel ‘Here are 10 reasons why risk
assets (stocks, riskier forex pairs, industrial commodities) have a very high
probability of a pullback very soon.
Technical Indicators: High Risk Of Downturn
The S&P 500 is the best single representative of overall risk appetite. It is telling
us that a pullback is coming very soon. (chart)
1. Coming Bounce Off Of Upper Bollinger Band (standard 2, 20 default settings):
Once the index starts to pull back from its upper Bollinger band, it usually pulls
back to at least its 50 day SMA, often lower. Since the end of the most recent rally
in late April, this rule has worked flawlessly in both mid-June and mid-August.
The index is now once again at its upper Bollinger Band.
Up Against Multiple Reinforcing Layers Of Strong Resistance Around 1120.
2. Upper Bollinger Band (noted above).
3. 200 day SMA (purple line).
4. 61.8% Fibonacci retracement from the February 2010 low (which has held up
well as support, only violated for a few sessions in July and August).
5. Neckline (red horizontal line around 1125) of the big bearish Head-And-
Shoulders pattern dating all the way back to the beginning of 2010. Left shoulder
in January, head in April, and right shoulder in June.
6. This same resistance at 1125 is reinforced by another bearish chart pattern- a
bearish double top (that may soon become a triple top if the above indicators
prove correct).
7. Recent Rally On Low Volume: The rally that began in late August has been on
very low volume, which suggests lack of conviction and thus less durability.
Fundamentals Don’t Support A Rally
8. We are heading into the second half of the month, which is lighter on
significant news data than would be needed to justify a push past the above
strong resistance layers
In addition, there is the overwhelmingly bearish fundamental backdrop:
9. US economic slowdown in every meaningful category: housing prices (where
the bear market began), jobs, spending, etc. Even manufacturing, until recently a
rare bright spot, has been slowing since the prior Philly Fed report.
10. The ongoing and utterly unsolved EU sovereign debt/banking crisis, with its
now periodic eruptions. While we have no major eruptions reported recently,
PIIGS sovereign and bank yields and CDS rates remain at May’s crisis levels, a
clear indication that markets are very nervous and ready to sell off, as they have
over the past weeks on news of Ireland’s latest bank bailout and a Wall Street
Journal article on how the EU bank stress tests understated PIIGS bond
exposure.
Despite Range Trading - Prominent Sell Signals Still Alive Simon Maierhofer, On
Thursday September 16, 2010, 12:35 pm EDT About a month ago, news about the
ominous Hindenburg Omen, terrible September/October and other prominent sell
signals were the big buzz around Wall Street. Has the recent rally and range bound
trading neutralized or even eliminated the bearish undercurrents? A look at current
sentiment would make you think so. Sentiment surveys show that bullishness has
soared and optimists are back in control (see chart below).But are the optimists
generally right? No. In fact, unfounded optimism is one of the biggest investment traps
and most effective bear market tricks. On April 16, the ETF Profit Strategy Newsletter
warned that: 'The message conveyed by the composite bullishness is unmistakably
bearish. Most bulls have no clue why they are bullish except for the fact that they feel
the need to play the momentum game. Sounds like 2000 and 2007 all over again.'
When it comes to investing, emotions tend to get in the way of making money. It takes
an opportunistic, yet realistic approach to profit in this market.
Parallels Between 2000, 2007, and Today
From a purely analytical point of view, the April ETF Profit Strategy Newsletter
examined the 2000 and 2007 market tops and compared them with the 2010 price
action, at a time when optimism was soaring sky-high. The parallels between the 2000,
2007 and forming 2010 tops were striking, that's why the newsletter concluded that: 'A
comparison between the 2000 and 2007 double tops to the current constellations shows
that the market may roll over at any time.' Similar to the January/April 2000 and
July/October 2007 double tops, the April 2010 highs were preceded by a lower January
top. But the parallels didn't stop there.
Major Tops Followed by Decoy Rallies
Following the initial 2007 decline, the April, May 2008 rally rekindled new hope and
pushed the major indexes a la Dow Jones (DJI: ^DJI), S&P (SNP: ^GSPC), and Nasdaq
(Nasdaq: ÎXIC) briefly above their 200-day moving average (MA). Following the initial
April 2010 decline, the July/August rally also pushed the S&P briefly above the 200-day
MA. Both, in 2008 and 2010, the indexes were rebuffed by the 200-day MA. The failure
to stay above the 200-day MA in May 2008 was followed by a 53.75% decline in the
S&P 500. Former performance leaders like the Financial Select Sector SPDRs
(NYSEArca: XLF - News) and KBW Bank ETF (NYSEArca: KBE - News) tumbled 79%,
the Technology Sector SPDRs (NYSEArca: XLK - News) dropped 49%. Even
conservative sectors such as utilities (NYSEArca: XLU - News) and healthcare
(NYSEArca: XLV - News) dropped another 35 - 45%. Like a free diver who comes up
for air, the market tends to rally to keep investors engaged before the next leg down.
The chart below - which plots bullish advisor sentiment against the price of the S&P 500
from June 2007 - September 2010, illustrates the market's cruel habit of spreading hope
just before the hammer drops. [chart]
It Happened Before
Since we are talking about prior market tops, we can't help but mention the mother of all
sucker rallies, which occurred in 1929/1930. Following the initial 1929 meltdown, the
1930 rally recouped 50% of the previously lost points. Ironically, the 1930 rally ended on
April 16. The 2010 counter trend rally ran its course on April 26. In addition to a near
identical termination date, the two rallies rekindled the same kind of bullish sentiment.
Below are a few headlines and statement from April 1930. Keep in mind that the Dow
went on to decline more than 80% thereafter. 'For the immediate future, the outlook is
bright' - Irving Fisher, Ph. D. in Economics 'I see nothing in the present situation that is
either menacing or warrants pessimism.' - Andrew W. Mellon, U. S. Secretary of the
Treasury 'The depression is over' - Herbert Hoover, President If you escaped the
market in time, you might be able to read the following April 2010 headlines with a fair
shot of humor and realize the irony: 'As job worries ease, will anything stop the stock
market?' – CNBC 'Dow 11,000 is only the beginning' - Wall Street Journal 'Check the
real estate: It is time to delve in' - Wall Street Journal
It Happened Recently
It's easy to dismiss any parallels to the Great Depression simply because it happened
80 years ago. However, an 80% drop is nothing unusual and has been seen recently.
The Nasdaq (Nasdaq: QQQQ - News) peaked in 2000 and tumbled 78.4% within less
than two years. Much evidence suggests that the Nasdaq's woes are not yet over with
more losses and lower lows on the horizon. Oil prices tumbled 77% after topping at
$147.3 a barrel in 2008. Both, the Nasdaq and oil prices topped at a time when higher
prices were a foregone conclusion. With regards to oil, the expectation for higher fuel
prices moved all major car manufacturers to advertise and build low MPG cars. As soon
as their commercials hit TVs, radios, and newspapers across the country, oil and fuel
prices started to drop like a rock. Some still dismiss those declines as sector bubbles,
not broad market declines.
It Happened to an Entire Country
The Nikkei is Japan's version of the S&P 500 and covers hundreds of stocks. In 1989,
the Nikkei topped at 38,946. Since then, it has dropped over 80% to below 8,000 (see
chart below, published in the April 2010 ETF Profit Strategy Newsletter). [chart]
Throughout this 20-year decline, the Nikkei had eleven rallies of 20% or more and four
that were 50% or more. In total, the Nikkei rallied well over 250,000 rally points, yet it
remains 76% below its 1989 peak. The decline of Japan's stock market (NYSEArca:
EWJ - News) and economy happened amidst a global bull market. Imagine what can
happen to the U.S. stock market during a global recession spurred by European
(NYSEArca: FEZ - News) debt woes and global stock market (NYSEArca: EFA - News)
weakness. It's human nature to rationalize and invent reasons why something can't
happen. It's the stock market's nature to prove investors wrong. Based on parallels that
aren't farfetched by any means, a follow through of the post 2007 U.S. equity meltdown
is more than just a possibility.
Fundamentals, Technicals, Valuations, and History in Agreement
Investing is about putting the odds in your favor. There is no such thing as a 100%
certain profit opportunity. However, there are high probability profit opportunities where
the odds of having a winning trade are high and the potential reward is much higher
than the potential risk. Such high probability profit opportunities occur when as many
indicators as possible point in the same direction. Right now, there is a near unanimous
consent between fundamental and technical indicators, along with valuations and
historic patterns. The latest ETF Profit Strategy Newsletter includes a detailed analysis
of various market forecasting tools, along with a short, mid, and long-term outlook for
the U.S. stock market and a target range for the ultimate market bottom. Even though
the economic outlook is dim, realistic investors can feel optimistic about the
opportunities in the months and years ahead.
Gold Rises to Record on Increased Demand for Wealth Protection
Yen hits 15-year high vs dollar
Regional Manufacturing Still Deteriorating
Census Reveals 45m Americans Living in Poverty One in seven Americans is

living below the poverty line, it was revealed yesterday. With 45mn
Americans officially designated as poor, the US census figures reflect the
worst decline in living standards for more than half a century.
Gold to Surge 50% to ‘Real’ Record?
Fed Issues More Debt Than It Needs On Friday, September 10, 2010, Horizon
Bank, Bradenton, FL was closed by the Florida Office of Financial
Regulation and the Federal Deposit Insurance Corporation (FDIC) was
named Receiver. No advance notice is given to the public when a financial
institution is closed.
August Foreclosures Highest on Record RealtyTrac, an online foreclosure sale

site, will release its monthly numbers on Thursday, but sources there confirm the
number of repossessions will come in just shy of 100,000 for the month.
Eco-Fascists Call For Tyranny To Enforce Draconian Agenda Paul Joseph
Watson | The ugly face of eugenics peers from behind the mask of
environmentalism.
Gold And Silver Hit New Highs For Second Time In One Week Steve Watson |
Gold and Silver have once again risen to new highs, with bullion futures
soaring close to a record $1,280 an ounce as the dollar fell to a five week low
against the euro.
Globalist Foundation Exploits Angry Child to Blame Adults for Fake Climate
Change Kurt Nimmo | Boy donning a gangbanger hoodie warns that adults
have had their chance to save the earth and now it will be the responsibility
of the next generation.
Protest Group Demands Investigation Into Homeland Security Spying Paul

Joseph Watson | Latest case follows multi-year trend of authorities being
trained to treat peaceful, patriotic Americans as domestic terrorists.
O’Reilly (bill the perve) Says 9/11 Truth Activists Are Dangerous Radicals Kurt
Nimmo | Links Muslim scholar and first responder to Ground Zero imam
Feisal Abdul Rauf.
White House Science Czar Says He Would Use ‘Free Market’ to ‘De-Develop the
United States’ In a video interview this week, White House Office of Science
and Technology Director John P. Holdren told CNSNews.com that he would
use the “free market economy” to implement the “massive campaign” he
advocated along with Population Bomb author Paul Ehrlich to “de-develop
the United States.”
Shock Audio: DC Congresswoman Leaves Voicemail Asking For Lobbyist Cash

Delegate to Congress for the District of Columbia Rep. Eleanor Holmes
Norton leaves voice mail citing her seniority and stimulus-based projects in
lobbyist’s “sector”.
U.S. urges Arab states to drop israel nuclear treaty demand Reuters [ Oooooh!
mother, father, grandmother, and stepfather.
O'Donnell's win throws a challenge at the GOP (Washington Post) [ Aw shucks!

Change just around the corner say the bipartisan incumbents… change afoot, like
wobama’s foot in his mouth / a** change … Let’s get real … no real change is a-
coming … but ‘hopium’ (previously discussed) is a powerfully addictive drug.
Let’s all awake from this hopium induced stupor and read these government
frauds the riot act! Defacto bankrupt american politics are getting downright
nasty (AP). Ask nancy pelosi, ‘the wicked witch of the west’ ( only a minute, this
political ad by John Dennis is well done and very funny)
http://albertpeia.com/nancypelosiwickedwitchofthewest.flv . ] By beating their
candidate for the Senate seat in Delaware, the tea party sends a message to the
Republican establishment: You are not in charge. Frustration with GOP pushed
win O'Donnell's win in the Delaware Senate primary reflects voter sentiment
toward party elders.
Fed faces tough choices (Washington Post) [ Wow! Mr. ‘wall street-glass-half-full’
has in a phrase ended the financial crisis, though many sure have been
fooled into thinking otherwise by that thing called reality … Yes, ‘no-
recession helicopter ben b.s. bernanke’ also in a phrase must decide, ‘to
print, or not to print much, or much much, or much much much, etc., more
worthless Weimar currency colloquially known as the american dollaro.
Well, we really know where that one’s going. Shocking CNBC Headline:
“Home Price Double Dip Begins” Diana Olick, by far the best reporter at
CNBC, and not merely an anchored regurgitator of propaganda bullet points,
let one slip today, by posting an article on CNBC titled: “Home Price Double
Dip Begins”. Are poll workers being used to inflate jobs totals? Workers at
polling places for today’s primary and November’s general election are
being required to file tax withholding forms for the first time ever in a move
that could be aimed at inflating the nation’s employment numbers. ] Agency
is facing its biggest decision since the end of the financial crisis,
confronting a fateful choice this fall whether to take new steps to boost the
economy.
U.S. sharpens criticism of China (Washington Post) [ Riiiiight, tiny tim … blame
the Chinese for your failed policies, though not exclusively your failed
policies … might be good for a 1/32 point shaved from the interest on the
gargantuan debt defacto bankrupt america owes them which is still many
billons over time so large is the debt. ]Treasury Secretary Tiny TimGeithner
signals a tougher line toward China's economic policies, saying that he
plans to persuade China to change how it manages its currency and to treat
U.S. businesses more fairly.
Stocks' rise defies record (Washington Post) [ Oh come on! The record’s not all
that’s being defied; try reason, rationality, etc.. Underestimating the Risks of the
Stock Market Keep in mind, this is an election year and as good as it gets, as
bad as it is beyond the spun / fake market-frothing data ] [Babak ‘If you spend
enough time trading and studying the markets you realize viscerally that markets
tend to fall and fall hard much more than they rise. We got a very good example
of this in the 2008 bear market where the S&P 500 index gave back in about 18
months all the gains that had taken it almost 5 years to accumulate (March 2003
to October 2007). The theoretical framework that many people use and that which
is still taught in finance classes across the globe continues to assume that
returns fall into a normal distribution. While it is useful to know that modern
portfolio theory and EMH are flimsy theories with no real world applications, it
doesn’t help us to recalibrate our instruments to just how asymmetrical stock
returns really are. To get at that answer, the research team at Welton Investments
compared the actual distribution of returns from the S&P 500 index over the past
50 years with the expected risk based on a Monte Carlo simulation. The results
are shown in the chart below: [ chart Source: Tail Risk ] This study shows that
investors continuously and severely underestimated negative returns. In fact,
going by rolling quarterly losses of 20% or more, investors experienced 5.3 times
more of these “fat tail” events than that accounted for by the expectations based
on a normal distribution. That difference is huge! Knowing this historical reality,
investors have two choices: either don’t play the game (get out of stocks) or play
but have a safety net handy for the inevitable fall …’ ] Defying September's track
record of being unkind to investors, the stock market has shot up for the past two
weeks as investors have grown less fearful the economy will slip into another
recession.
O'Donnell's win throws a challenge at the GOP (Washington Post) [ Aw shucks!

Change just around the corner say the bipartisan incumbents… change afoot, like
wobama’s foot in his mouth / a** change … Let’s get real … no real change is a-
coming … but ‘hopium’ (previously discussed) is a powerfully addictive drug.
Let’s all awake from this hopium induced stupor and read these government
frauds the riot act! Defacto bankrupt american politics are getting downright
nasty (AP). Ask nancy pelosi, ‘the wicked witch of the west’ ( only a minute, this
political ad by John Dennis is well done and very funny)
http://albertpeia.com/nancypelosiwickedwitchofthewest.flv . ] By beating their
candidate for the Senate seat in Delaware, the tea party sends a message to the
Republican establishment: You are not in charge. Frustration with GOP pushed
win O'Donnell's win in the Delaware Senate primary reflects voter sentiment
toward party elders.
Fed faces tough choices (Washington Post) [ Wow! Mr. ‘wall street-glass-half-full’
has in a phrase ended the financial crisis, though many sure have been
fooled into thinking otherwise by that thing called reality … Yes, ‘no-
recession helicopter ben b.s. bernanke’ also in a phrase must decide, ‘to
print, or not to print much, or much much, or much much much, etc., more
worthless Weimar currency colloquially known as the american dollaro.
Well, we really know where that one’s going. Shocking CNBC Headline:
“Home Price Double Dip Begins” Diana Olick, by far the best reporter at
CNBC, and not merely an anchored regurgitator of propaganda bullet points,
let one slip today, by posting an article on CNBC titled: “Home Price Double
Dip Begins”. Are poll workers being used to inflate jobs totals? Workers at
polling places for today’s primary and November’s general election are
being required to file tax withholding forms for the first time ever in a move
that could be aimed at inflating the nation’s employment numbers. ] Agency
is facing its biggest decision since the end of the financial crisis,
confronting a fateful choice this fall whether to take new steps to boost the
economy.
U.S. sharpens criticism of China (Washington Post) [ Riiiiight, tiny tim … blame
the Chinese for your failed policies, though not exclusively your failed
policies … might be good for a 1/32 point shaved from the interest on the
gargantuan debt defacto bankrupt america owes them which is still many
billons over time so large is the debt. ]Treasury Secretary Tiny TimGeithner
signals a tougher line toward China's economic policies, saying that he
plans to persuade China to change how it manages its currency and to treat
U.S. businesses more fairly.
Stocks' rise defies record (Washington Post) [ Oh come on! The record’s not all
that’s being defied; try reason, rationality, etc.. Underestimating the Risks of the
Stock Market Keep in mind, this is an election year and as good as it gets, as
bad as it is beyond the spun / fake market-frothing data ] [Babak ‘If you spend
enough time trading and studying the markets you realize viscerally that markets
tend to fall and fall hard much more than they rise. We got a very good example
of this in the 2008 bear market where the S&P 500 index gave back in about 18
months all the gains that had taken it almost 5 years to accumulate (March 2003
to October 2007). The theoretical framework that many people use and that which
is still taught in finance classes across the globe continues to assume that
returns fall into a normal distribution. While it is useful to know that modern
portfolio theory and EMH are flimsy theories with no real world applications, it
doesn’t help us to recalibrate our instruments to just how asymmetrical stock
returns really are. To get at that answer, the research team at Welton Investments
compared the actual distribution of returns from the S&P 500 index over the past
50 years with the expected risk based on a Monte Carlo simulation. The results
are shown in the chart below: [ chart Source: Tail Risk ] This study shows that
investors continuously and severely underestimated negative returns. In fact,
going by rolling quarterly losses of 20% or more, investors experienced 5.3 times
more of these “fat tail” events than that accounted for by the expectations based
on a normal distribution. That difference is huge! Knowing this historical reality,
investors have two choices: either don’t play the game (get out of stocks) or play
but have a safety net handy for the inevitable fall …’ ] Defying September's track
record of being unkind to investors, the stock market has shot up for the past two
weeks as investors have grown less fearful the economy will slip into another
recession.
Israelis, Palestinians already broaching tough topics in talks, envoy says

(Washington Post) ‘US – Israel’s partner in crime, not a referee’
(Infowars.com) Israeli and Palestinian leaders are holding a new round of
direct talks. Bombshell: Barack Obama conclusively outed as CIA creation
Wayne Madsen | Investigative journalist Wayne Madsen has discovered CIA
files that document the agency’s connections to the lives of Barack Obama
and his mother, father, grandmother, and stepfather.
Where Are The Jobs? Most Americans don’t really care about the economic
minutiae that many of us who study the U.S. economy love to pour over.
‘US – Israel’s partner in crime, not a referee’ Israeli and Palestinian leaders are
holding a new round of direct talks.
Justice Breyer Suggests “Globalization” Trumps First Amendment Supreme

Court Associate Justice Stephen Breyer was indecisive when answering a
question about whether or not Pastor Terry Jones’ proposed Koran burning
was protected by free speech, suggesting that “globalization” now trumps
the First Amendment in the eyes of lawmakers.
Let’s Raise Taxes, Greenspan Tells CFR “I am in favor for the first time in my
memory [What memory? Incompetent greenspun is senile! ] of raising
taxes,” Greenspan told an audience at the Council on Foreign Relations in
New York.
Government Bans Tea Party From Celebrating U.S. Constitution Local government
representatives in an Ohio town have taken it upon themselves to prohibit a Tea Party
celebration of the US Constitution, prompting a lawsuit over restrictions on First
Amendment rights.
Empire State Manufacturing Falls in September
Technical Resistance: Here We Go Again Hui ‘…The odds seem to favor another
downleg for a couple of reasons.
First of all, investor sentiment has gotten incredibly bullish in the space of a couple of
weeks, which is contrarian bearish.
More important for the intermediate term, the market is facing a number of macro
headwinds of economic weakness starting in 4Q. John Hussman noted in his latest
weekly comment [emphasis added]: As I've noted frequently in recent commentaries,
the typical lag between deterioration in say, the ECRI Weekly Leading Index and the
ISM Purchasing Managers Index is about 13 weeks, and sometimes longer. The typical
lag with respect to new claims for unemployment is about 23-26 weeks (which puts
the likely window of deterioration at about the October - November time frame),
and the typical lag with respect to the payroll unemployment report is, not surprisingly,
about 4 weeks beyond that.
Uber-bear Albert Edwards put it more bluntly:The current situation reminds me of mid
2007. Investors then were content to stick their heads into very deep sand and ignore
the fact that The Great Unwind had clearly begun. But in August and September 2007,
even though the wheels were clearly falling off the global economy, the S&P still
managed to rally 15%! The recent reaction to data suggests the market is in a similar
deluded state of mind. Yet again, equity investors refuse to accept they are now locked
in a Vulcan death grip and are about to fall unconscious…’
The Dow Is Overbought on Its Daily Chart

To Dip or Double-Dip? Janjigian There has been a lot of talk lately about whether
or not we will have a double-dip recession. I have long been in the camp that says
a double-dip is a real possibility. I believe the probability for a second recession
is higher now than it was last March. But how does one actually assign a number
to this probability? The economists Nouriel Roubini and Martin Feldstein are
perhaps the most bearish on the economy. They say the chances of a second
recession are about one in three. This means they believe that if the economy
were to experience the same exact conditions it is experiencing now hundreds of
times, one-third of those times would result in a recession. Another way to look at
is that the probability that we will not have a second recession is about 67%. In
other words, even the most bearish economists believe there is a much better
chance that we will avoid a second recession than there is that we will actually
have one … [ Hey, come on! If they only were the most bearish on the economy
To Dip or Double-Dip? Janjigian There has been a lot of talk lately about whether
or not we will have a double-dip recession. I have long been in the camp that says
a double-dip is a real possibility. I believe the probability for a second recession
is higher now than it was last March.
third depression. He isn’t back down from that outlook
Industrial output growth slows (Reuters) WASHINGTON (Reuters) – ‘U.S.

industrial output slowed last month and a regional measure of factory activity
touched a 14-month low in September, pointing to a cooling in manufacturing as
the boost from an inventory build-up fades. The reports on Wednesday were
consistent with other data suggesting the U.S. economy is stuck in a soft spot,
but they also showed the manufacturing sector continued to expand and offered
nothing to suggest a new recession was brewing. "We have a sharp slowdown,
but that doesn't look like it's going to develop into an outright collapse," said
Paul Ashworth, senior U.S. economist at Capital Economics in Toronto. Industrial
production rose 0.2 percent in August, Federal Reserve data showed, matching
economists' forecasts for a sharp slowdown from July when unusually strong
auto manufacturing lifted output. July's gain was revised down to 0.6 percent
from 1 percent …’
Yen hits 15-year high vs dollar Reuters | The dollar hit a 15-year low against the
yen on Tuesday, testing Japanese authorities’ resolve to stem the yen’s
climb after Prime Minister Naoto Kan won a party leadership vote.
Six in 10 Canadians live pay to pay Globe and Mail | Fifty-nine per cent of
Canadian workers say they would be in financial trouble if their paycheque
was delayed by just a week.
IMF fears ‘social explosion’ from world jobs crisis Telegraph | America and
Europe face the worst jobs crisis since the 1930s and risk “an explosion of
social unrest” unless they tread carefully, the International Monetary Fund
has warned.
Shocking CNBC Headline: “Home Price Double Dip Begins” Diana Olick, by
far the best reporter at CNBC, and not merely an anchored regurgitator of
propaganda bullet points, let one slip today, by posting an article on CNBC
titled: “Home Price Double Dip Begins”.
Are poll workers being used to inflate jobs totals? Workers at polling places for
today’s primary and November’s general election are being required to file
tax withholding forms for the first time ever in a move that could be aimed at
inflating the nation’s employment numbers.
Currency Intervention, Bitches After a six year wait, the BoJ has finally had
enough of the Federal Reserve’s endless manipulation and has itself
intervened in the currency market.
Where Are The Jobs? Most Americans don’t really care about the economic
minutiae that many of us who study the U.S. economy love to pour over.
‘US – Israel’s partner in crime, not a referee’ Israeli and Palestinian leaders are
holding a new round of direct talks.
Defacto bankrupt american politics are getting downright nasty. Ask nancy
pelosi, ‘the wicked witch of the west’
http://albertpeia.com/nancypelosiwickedwitchofthewest.flv .
Justice Breyer Suggests “Globalization” Trumps First Amendment Supreme

Court Associate Justice Stephen Breyer was indecisive when answering a
question about whether or not Pastor Terry Jones’ proposed Koran burning
was protected by free speech, suggesting that “globalization” now trumps
the First Amendment in the eyes of lawmakers.
Let’s Raise Taxes, Greenspan Tells CFR “I am in favor for the first time in my
memory [What memory? Incompetent greenspun is senile! ] of raising
taxes,” Greenspan told an audience at the Council on Foreign Relations in
New York.
Government Bans Tea Party From Celebrating U.S. Constitution Local
government representatives in an Ohio town have taken it upon themselves
to prohibit a Tea Party celebration of the US Constitution, prompting a
lawsuit over restrictions on First Amendment rights.
Globalist Soros Declares “Gold Is The Ultimate Bubble”… Again Billionaire

globalist George Soros wants you to think that investing in Gold is “unsafe”
and that the rallies the precious metal has seen in the wake of the economic
implosion are abnormal.
Police Continue to Harass Citizens Who Record Them A number of cases show
how police continue to misunderstand citizens’ rights to record their
behavior, and they’re now neatly compiled into a video from the Cato
Institute.
Anti-Establishment Fervor A Hammer Blow To Washington Elite Amidst the

defeat two more establishment Republicans by Tea Party candidates last
night, a new Rasmussen poll shows that anti-incumbent challenger Sharron
Angle is now tied with Democratic Senate Majority Leader Harry Reid, and
stands a good chance of ousting him in November, which would represent a
massive blow to the Washington elite.
Karl Rove: Defender of Forever War and a Devastating National Debt Kurt Nimmo
| Rove loathes Christine O’Donnell because she represents political change
in Washington — and that must be halted at all cost.
Secretive Executive Order Establishes ‘Big Brother’ Health Bureaucracy Eric Blair
| Obama quietly signed an Executive Order that some claim lays the
foundation for implementing Codex Alimentarius.
Bill Gates Death Panels Tip of Iceberg Paul Joseph Watson, Kurt Nimmo & Alex
Jones | Gates in cahoots with the Rockefellers and the bioethics movement
to deny health care to Americans.
Anti-Establishment Fervor A Hammer Blow To Washington Elite Paul Joseph

Watson | Waiting for an October surprise: The system is cornered,
desperate, and dangerous.
Pennsylvania Homeland Security Puts Anti-tax Protesters On List of Terror

Threats Kurt Nimmo | Pennsylvania’s Democrat governor Ed Renell says he
is “deeply embarrassed” by the disclosure.

NYC Disaster On Primary Day; Machine Glitches Cause Chaos...
Bloomberg Blasts...
Feds probing...
US troops continue combat missions in Iraq, despite Obama's end-of-war
speech...
Poll workers being used to inflate jobs totals?
Retirement on Hold: American Workers $6 Trillion Short...
REPUBLICAN ACCUSES WHITE HOUSE OF 'CLASS WARFARE'...
Paul says GOP shares blame for deficits...
Kerry flip-flops on tax cuts...
Muslims protest Quran-burning plan...
Florida pastor calls it off...
Christians rip pages from Muslim holy book in front of White House...
Man ignites Quran near Ground Zero...
VIDEO...
Mosque opponents, supporters face off in downtown NYC...
OBAMA: 'We are not and never will be at war with Islam'...
'Tea party' favorites score in DE, NY...
Establishment Freaks...
'One nation under revolt'...
Christine Smacks Rove: 'So-Called Political Guru'...
CASH POURS IN FOR O'DONNELL; $500,000 IN ONE DAY...
Upsets...
RESULTS...
WIRE...
IN: RANGEL SURVIVES CHALLENGE...
OUT: DC MAYOR VOTED DOWN IN UPSET...
HANGING: DINGELL WARNS DONORS HE COULD LOSE...
Dems gamble by shifting fire to Boehner...
Bill Clinton: New-look GOP makes Bush look liberal!
POLL: Only 25% of public trusts gov't...
The Crash, Obama and Disappearing Dem Majority...
Jobless strain Social Security's disability program (Washington Post) [ Jobless?

Strain? Disability? If only that were the only problem for the debacle that will be
called ‘social security’. Indeed, even at full employment, those worthless iou’s
will still be worthless as this typical capital hill political math project will
eventually, as with ponzi schemes generally, end very badly. ]
More banks missing TARP dividend payments [ Isn’t it true as never before in the
short history of defacto bankrupt america, that nothing succeeds in america quite
like a lack of success? ] Bank Failure Friday Continues at Seeking Alpha ‘…Bank
Failure Friday continues with the total number of failures for 2010 now up to 119
on the way to 150 to 200, as the third quarter total ended September 10th at 33.
During “The Great Credit Crunch” the FDIC only closed 25 banks during all of
2008. In 2009 the FDIC picked up the pace with 140 bank failures with a peak of 50
in the third quarter of 2009. So far in 2010 the FDIC closed 41 banks in the first
quarter, another 45 in the second quarter, and so far 33 for the third quarter. With
119 bank failures so far in 2010 the total for “The Great Credit Crunch” is up to
284 continuing its path to my predicted 500 to 800 by the end of 2012 into 2013 …]
Pearlstein: A bold new breed of bank regulators (Washington Post) [ Wow! Gee! I
had always viewed Mr. Pearlstein as a grounded kind of guy. You know …
somewhat realistic … I guess I was wrong ‘cause who’s kidding whom? Criminal
prosecutions, jail, fines, and disgorgement are the only way to maximize
regulatory effectiveness, presently and prospectively. As of now, it pays for the
predisposed frauds to take what currently is miniscule chance of prosecution for
what have been and remain huge personal and corporate gains. Handcuffs For
Wall Street, Not Happy Talk Zach Carter | The fraud allegations that have emerged
over the past year are not restricted to a few bad apples at shady companies —
they involve some of the largest players in global finance. Finance groups: Long
transition to ease new bank rules (Washington Post) [ Basel’s all the rage …
Riiiiight! Bonkers for Basel, the thing in rally vogue this day … but, not Basil as
in Basil Rathbone of super sleuth Sherlock Holmes film fame who’d make short
shrift of this fraudulent wall street contagion that has swept over Europe in a
manner to rightfully earn the moniker ‘eventual black Friday plague’ … and then
there’s the ‘higher oil price’ part of the suckers’ rally. We can certainly expect
Rosanne Rosanna Danna formerly of SNL fame, as night follows the day, to
chime in with a reminder as her mama always used to say, ‘it’s always something’
… but unfortunately, that somethin’ is not reality. YAHOO [BRIEFING.COM]:
‘Broad-based buying on the back of Basel III boosted stocks to their fourth
straight gain, or seventh advance in eight sessions. Still, participation remained
unimpressive ... ‘ AP Business Highlights ‘… Banks get years to adjust to new
global rules BASEL, Switzerland (AP) -- Bankers and analysts said new global
rules could mean less money available to lend to businesses and consumers, but
praised a decision to leave plenty of time -- until 2019 -- before the financial
stability requirements come into full force’ ] The requirements adopted by the
Basel Committee on Banking Supervision fall short of what's needed to prevent
another financial crisis. ]
Asian sites' protection urged to save tigers (Washington Post) [ This is clearly a
noble task of the highest order that will effect returns manyfold in the most
positive sense for this increasing small and troubled world. ] Just 42 sites
across Asia, ranging from temperate forests to tropical grasslands, are key
to the survival of one of the world's most iconic, and feared, wild cats - the
tiger.
Buried Alive - Prominent Sell Signals
Is the Stock Market Safe? [ This time the consensus is correct, in a ‘fish in a
barrel’ kind of way! ]‘In a word, no. That’s the general consensus found in a
survey of individual investors done by AP and CNBC this week. As if dealing with
two major bear markets since the turn of the century wasn’t enough, all the talk
about high frequency trading and the May 6th "Flash Crash" seems to have
pushed individual investors over the edge in terms of their comfort level with the
stock market. In fact, according to an AP/CNBC poll, 55% of those surveyed
believe the stock market is fair only to some investors. The bottom line of this
particular survey is that investors are now wary about the idea of using the stock
market as a way to invest for retirement. Instead, the survey found that the vast
majority of individual investors continue to pump unprecedented amounts of
money into what many believe is the most overvalued asset class on the planet –
government bonds. One result of the 10-plus year secular bear market in stocks
is the gradual erosion of the public’s interest and confidence in stocks as an
investment. Of course this HAS happened before. Anyone recall the 1982 cover of
Time magazine with the title “The Death of Equities?” Although the cyclical bull
market that began in March 2009 remains intact, the public has been pulling
money out of the market on a monthly basis. Since January 2008, the Investment
Company Institute reports that a total of $244 billion has been withdrawn from US
equity funds. Yet at the same time, a total of more than $589 billion has poured
into US bond mutual funds, which is an unparalleled amount. It appears that the
"Flash Crash" may have been the straw that broke the camel’s back. For example,
in the 11 weeks prior to May 6th the public pumped a strong $26.6 billion into
equity mutual funds. This is hardly surprising since during that time the market
was rising steadily and had gained more than 70% in the past 12 months.
However, in the 16 weeks since the "Flash Crash," investors have been running
scared. In fact, Investment Company Institute reports that the public has pulled
money out of US equity funds each and every week since, with cumulative
withdrawals now totaling $55.9 billion. Thus, it would appear that the market’s
recent volatility has caused the investing public to lose confidence in the market.
The AP/CNBC poll found that 61% of those surveyed felt the volatility has made
them less confident about buying and selling stocks. There is also a widespread
perception is that the market is rigged or unfair to the little guy. Nearly 90% of the
survey respondents whose portfolios are less than $50,000 said the market is
unfair to small investors. In addition, the public doesn’t seem to have much faith
in the administration to fix the situation in the market. The poll found that just 8%
expressed strong confidence in federal regulators while 50% expressed little-to-
no confidence in those tasked with overseeing the markets. Does this mean it is
time to give up on the stock market as an investment vehicle? We would respond
with a resounding “no!” The trick is to understand that the game has changed.
After an 18-year bull market, the tide has turned. As such, investors actually have
to do something besides putting money into any old mutual fund and closing
their eyes. Disclosure: No positions’
Handcuffs For Wall Street, Not Happy Talk Zach Carter | The fraud allegations that
have emerged over the past year are not restricted to a few bad apples at shady
companies — they involve some of the largest players in global finance.
Hatzius: The Risks Are Still to the Downside
Yen hits 15-year high vs dollar Reuters | The dollar hit a 15-year low against the
yen on Tuesday, testing Japanese authorities’ resolve to stem the yen’s
climb after Prime Minister Naoto Kan won a party leadership vote.
Six in 10 Canadians live pay to pay Globe and Mail | Fifty-nine per cent of
Canadian workers say they would be in financial trouble if their paycheque
was delayed by just a week.
IMF fears ‘social explosion’ from world jobs crisis Telegraph | America and
Europe face the worst jobs crisis since the 1930s and risk “an explosion of
social unrest” unless they tread carefully, the International Monetary Fund
has warned.
‘The Great American Stickup’: It Was The Economy, Stupid It is not

conspiratorial but rather accurate to suggest that blame can be assigned to
those who consciously developed and implemented a policy of radical
financial deregulation that led to a global recession.
John Williams Sees The Onset Of Hyperinflation In As Little As 6 To 9 Months As

Fed “Tap Dances On A Land Mine” John Williams, arguably one of the best
trackers of real, unmanipulated government data via his Shadow Stats blog,
has just released a note to clients in which he warns that hyperinflation may
hit as soon as 6 to 9 months from today.
Will the Basel III Bank Regulations Change Anything? The much-trumpeted Basel
III increase in capital requirements will not be fully phased in until 2019.
Three Powerful Trends Will Push Gold Prices To $1600 UniCredit has upgraded
their target price for gold from $1,250 to $1,600 by the end of 2012. The
reason for the upgrade is based on three powerful trends: the fear over
“money printing” at the Fed (QE), the idea that the Euro sovereign debt
crisis represents a condemnation of fiat money and increasing demand for
gold from China.
The Real Story Behind Bill Gates And “Death Panels” Bill Gates’ advocacy for
“death panels” has caused controversy amongst conservative
commentators, but the real outrage behind the story has been completely
overlooked – the fact that Gates is a hardcore eugenicist and has called for
lowering the global population through vaccines which his foundation funds
to the tune of billions.
tiger.
Gates starts to outline cuts to save $100 billion for defense (Washington Post )
[ Oooooh … sounds like a plan! No, not gates’ only slightly less bankrupt nation
plan over 5 years which bearly covers the interest on the trillion plus for the wars;
but rather, Karzai’s plan for u.s. companies extended to u.s. presence, period! ]
Defense Secretary Robert Gates on Tuesday said the Pentagon must get "more
bang for its buck and shift its focus to the military's needs for the future." Karzai
wants private security firms out of Afghanistan: KARZAI WANTS COMPANIES
OUT U.S. calls 4-month deadline 'very challenging' (Washington Post) One too
many civilian killed. Maybe they figured out that american non-strategy
employing the Hegelian methodology of creating problems that American firms
can solve. Doomed to failure, they eventually catch on. The bushes were famed
for same but wobama has foolishly been no slouch in this regard.
Ex-CIA Agents Confirm Torture at Polish Black Site Former CIA agents have
confirmed rumors that the agency tortured terror suspects at a detention
center in Poland. One agent allegedly held a drill to a prisoner’s head while
he was naked and hooded.
Blair’s Journey: US medal for ‘war criminal’? Former British Prime Minister Tony
Blair will receive a prestigious American medal for human rights work. But in
his ten years as premier, Blair went from huge popularity to being called a
U.S. poodle. His policies in Iraq and Afghanistan earned him accusations of
having blood on his hands. And as Laura Emmett reports, many are
outraged at his latest award.
Big Sis To Get Expanded Role In Policing Internet Two cybersecurity bills that
would hand President Obama the power to shut down parts of the Internet in
the event of a national emergency have now been merged into a single
unified piece of legislation that Democrats will try to pass before the end of
the year, with the Department of Homeland Security being given a larger role
in policing the world wide web.
Peace Activist Cindy Sheehan: “I am A 9/11 Truther” Cindy Sheehan, the anti-war
activist who lost her son to the ongoing war in Iraq, delivered an
impassioned and emotional speech during which she specifically addressed
concerns over the 9/11 attacks and stated that she believes they were
orchestrated by elements of the U.S. government for political gain.
Soros Front Group Exploits Teenage Celebrity to Get Out Vote for War Party
Soros and crew want to get out the vote at all cost, even if they have to
exploit kids.
Gold and Silver Explode as Banksters Abandon Market Manipulation Gold has
surged to a new high as the prospect of inflation reared its ugly head in the
United Kingdom on bad news from a report indicating a weaker-than-
expected eurozone industrial production. Germany and France, despite
sovereign debt fears, have been able to manage anemic growth but today’s
data signals a slow down.
Allegation: Americans Flooded Out Millions in Pakistan to Protect U.S. Drone

Military Base Feryal Ali Gauhar served as a Goodwill Ambassador for the
United Nations Population Fund and is the only UN Goodwill Ambassador
who quit over the invasion of Iraq.
The Biocratic Utopians Part I: Prussian Grenadiers Jurriaan Maessen | The

ambition of the biocrats is to create a “superior” class of men.
Gold and Silver Explode as Banksters Abandon Market Manipulation Kurt Nimmo
| Gold traded as high as $1,261.90 on Tuesday.
Big Sis To Get Expanded Role In Policing Internet Paul Joseph Watson |
Democrats want “Kill Switch” bill passed this year.
Soros Front Group Exploits Teenage Celebrity to Get Out Vote for War Party Kurt
Nimmo | The Twitter crowd needs to know that the health of the state is
perpetual war.
Expanding U.S.-Canada Security and Economic Partnership Dana Gabriel |
NAFTA partners are pursuing a more bilateral agenda for advancing
continental integration.
Cuba to cut 500,000 workers, reform salaries (Washington Post) [ Boy, when
Castro said communism wasn’t working for them anymore, he wasn’t kidding! No
gloating for defacto bankrupt, pervasively corrupt america which is a far cry from
capitalism and but a whisper from collapse itself.]
Banks miss TARP payments (Washington Post) [ Sounds like a plan! … Bank
Failure Friday Continues at Seeking Alpha ‘…Bank Failure Friday continues with
the total number of failures for 2010 now up to 119 on the way to 150 to 200, as
the third quarter total ended September 10th at 33. During “The Great Credit
Crunch” the FDIC only closed 25 banks during all of 2008. In 2009 the FDIC
picked up the pace with 140 bank failures with a peak of 50 in the third quarter of
2009. So far in 2010 the FDIC closed 41 banks in the first quarter, another 45 in
the second quarter, and so far 33 for the third quarter. With 119 bank failures so
far in 2010 the total for “The Great Credit Crunch” is up to 284 continuing its path
to my predicted 500 to 800 by the end of 2012 into 2013 … (see rest of article
infra)]
Economy's fallout (Washington Post) The fallout of a troubled economy [ I’m

sorry to say that … you ain’t seen nothing yet … much worse to come! ]From
foreclosure to food shortages, the recession set in motion by the financial
crisis of 2008 is having a broad and deeply-felt global impact.
Doomsday warnings of US apocalypse gain ground AFP | Economists peddling

dire warnings that the world’s number one economy is on the brink of collapse.
nefarious sense (
) ]:


#1 United States: 11,877,218
# 3 Germany: 6,507,394
… ]
Doomsday warnings of US apocalypse gain ground AFP | Economists peddling

dire warnings that the world’s number one economy is on the brink of collapse.
Handcuffs For Wall Street, Not Happy Talk Zach Carter | The fraud allegations that
have emerged over the past year are not restricted to a few bad apples at
shady companies — they involve some of the largest players in global
finance.
Why New Bank Capital Rules Could Make Things Worse CNBC | Early reports
suggest the required levels of capital will be much lower than feared, and the
kinds of assets that can be used to meet the requirements more expansive
than earlier proposals suggested.
Economic Docs Find Remedy Amid Bubble Rubble Even the most casual
observer of the events of the last five years — the housing bubble, the bust
and the digging-out process — would be struck by the similarities between
the policies that got us into this mess and the prescriptions for getting us
out.
World Panel Backs Rules to Avert Banking Crises Top central bankers and bank
regulators agreed Sunday on far-reaching new rules for the global banking
industry that are designed to avert future financial disasters, but could also
dampen bank profits and strain weaker institutions.
Tim Geithner Warns: The US Is At Risk Of A 1930s Repeat If the government

become paralyzed — as is arguably the case already, and is clearly a serious
risk should the GOP take over — the US risks a 1930s-like scenario. At least
according to Tim Geithner.
M2 Surges By $30 Billion In Past Week To Highest Ever, Even As Monetary Base
Declines Another week in which the M2 jumped to a fresh all time high,
increasing by $30 billion W/W to just under $8.7 trillion.
Bank Failure Friday Continues at Seeking Alpha ‘…Bank Failure Friday continues
with the total number of failures for 2010 now up to 119 on the way to 150 to 200,
as the third quarter total ended September 10th at 33. During “The Great Credit
Crunch” the FDIC only closed 25 banks during all of 2008. In 2009 the FDIC
picked up the pace with 140 bank failures with a peak of 50 in the third quarter of
2009. So far in 2010 the FDIC closed 41 banks in the first quarter, another 45 in
the second quarter, and so far 33 for the third quarter. With 119 bank failures so
far in 2010 the total for “The Great Credit Crunch” is up to 284 continuing its path
to my predicted 500 to 800 by the end of 2012 into 2013.
The failed bank was publicly-traded Horizon Bank (HZNB.OB), which had huge
overexposures to C&D and CRE loans with risk ratios of 358% and 1769% versus
the ignored regulatory guidelines of 100% and 300% of risk-based capital. The
commitment pipeline of commercial real estate loans was 99% funded as “extend
and pretend” caused this failure. The consolidator bank has been used before by
the FDIC; Bank of the Ozarks (OZRK) which has a HOLD rating according to
ValuEngine.
Here are some statistics from the FDIC for the Second Quarter 2010: There were
45 bank failures in the second quarter, and we ended the quarter with the number
of FDIC-insured financial institutions declining to 7,893, of which 1306 are
publicly-traded.
· 1172 of all community banks (14.8%) are overexposed to Construction &

Development Loans.
· 1432 or 18.1% are overexposed to Nonfarm / Nonresidential real estate loans.
· 2504 or 31.7% are thus overexposed to Commercial Real Estate loans.
· 1317 or 16.7% have a real estate loan pipeline that’s 100% funded.
· 2622 or 33.2% have a pipeline that’s between 80% and 100% funded.
· 3939 of 49.9% of all banks have a pipeline that’s 80% or more funded. So half the
community banks in America remain overleveraged to Commercial Real Estate
and the possible losses remain about $1.5 trillion.
Publicly-Traded Banks:
· 293 of the 1306 publicly-traded banks are overexposed to C&D loans
· 394 are overexposed to Nonfarm / Nonresidential real estate loans.
· 687 or 52.6% of the publicly-traded banks are thus overexposed to Commercial

Real Estate loans. We publish this list as the ValuEngine List of Problem Banks.
· 234 publicly-traded banks have a real estate loan portfolio that’s 100% funded.
· 463 have a real estate loan portfolio between 80% and 100% funded.
· 697 thus have significant real estate loan pipeline stress.
Problem Banks at the end of the Second Quarter versus the First Quarter:
• Given the waves of bank failures the total assets among the 686 Publicly-
Traded Problem Banks declined to $135.9 billion from $164.7 billion in the
first quarter. C&D loans declined to $12.7 billion from $16.4 billion with a
CRE loan pipeline steady at 78.1% versus 78.0%.
• Assets among the 91 Deadbeat Banks, (those in arrears on making TARP
dividend payments), totals $99.9 billion with C&D loans at $10.9 billion and
a CRE pipeline of 80.9%.
• Assets among failed publicly-traded banks increased to $122.5 billion from
$116.7 billion in the first quarter. C&D loans increased to $22.3 billion from
$21.5 billion. The CRE loan pipeline increased a tick to 90.4% from 90.3%.
Assets among banks with a CRE pipeline of 80% or more funded increased to
$3.84 trillion including $121.3 billion in C&D loans. The average pipeline for 3939
banks is 92.0%. Among this list are four big banks that will likely see waves of
write-offs in upcoming quarters.
• JP Morgan Chase (JPM) with $1.72 trillion in assets has a pipeline of 80%.
• SunTrust Banks (STI) has $160.5 billion in assets with an 83% pipeline.
• BB&T Corp (BBT) has $149.2 billion in assets with an 84% pipeline.
• Fifth Third Bank (FITB) has 100.0 billion in assets with an 84% pipeline.
Disclosure: No positions’
U.S. Trade Deficit Still Growing
Why New Bank Capital Rules Could Make Things Worse CNBC | Early reports
suggest the required levels of capital will be much lower than feared, and the
kinds of assets that can be used to meet the requirements more expansive
than earlier proposals suggested.
Too Big To Fail Global Banks Will Collapse Between Now and First Quarter 2011
Matthias Chang | Quantitative Easing spearheaded by the Chairman of
Federal Reserve, Ben Bernanke, delayed the inevitable demise of the fiat
shadow money banking system slightly over 18 months.
Defacto Bankrupt, Meaningfully Lawless, War Criminal Nation america, the leader
of nations … in crime:
nefarious sense (
) ]:


#1 United States: 11,877,218
#2 United Kingdom: 6,523,706
#3 Germany: 6,507,394
#4 France: 3,771,850
#5 Russia: 2,952,370
#6 Japan: 2,853,739
#7 South Africa: 2,683,849
#8 Canada: 2,516,918
#9 Italy: 2,231,550
# 10 India: 1,764,630
# 11 Korea, South: 1,543,220
# 12 Mexico: 1,516,029
# 13 Netherlands: 1,422,863
# 14 Poland: 1,404,229
# 15 Argentina: 1,340,529
# 16 Sweden: 1,234,784
# 17 Belgium: 973,548
# 18 Spain: 923,271
# 19 Chile: 593,997
# 20 Thailand: 565,108
# 21 Ukraine: 553,594
# 22 Austria: 552,411
# 23 Finland: 520,194
# 24 Denmark: 491,026
# 25 New Zealand: 427,230
# 26 Hungary: 420,782
# 27 Czech Republic: 372,341
# 28 Zimbabwe: 351,153
# 29 Norway: 330,071
# 30 Romania: 312,204
# 31 Switzerland: 307,631
# 32 Turkey: 286,482
# 33 Morocco: 283,702
# 34 Venezuela: 236,165
# 35 Portugal: 218,360
# 36 Colombia: 214,192
# 37 Malaysia: 167,173
# 38 Peru: 161,621
# 39 Bulgaria: 148,915
# 40 Uruguay: 134,010
# 41 Belarus: 132,867
# 42 Tunisia: 130,375
# 43 Slovakia: 107,373
# 44 Greece: 102,783
# 45 Croatia: 101,853
# 46 Lithuania: 92,646
# 47 Philippines: 85,776
# 48 Saudi Arabia: 84,599
# 49 Slovenia: 81,697
# 50 Ireland: 81,274
# 51 Hong Kong: 80,592
# 52 Iceland: 60,242
# 53 Zambia: 59,426
# 54 Estonia: 57,799
# 55 Latvia: 49,329
# 56 El Salvador: 44,762
# 57 Costa Rica: 40,263
# 58 Jamaica: 39,188
# 59 Kyrgyzstan: 38,620
# 60 Moldova: 36,302
# 61 Mauritius: 35,943
# 62 Bolivia: 31,138
# 63 Luxembourg: 26,046
# 64 Yemen: 24,066
# 65 Panama: 21,058
# 66 Macedonia, The Former Yugoslav Republic of: 19,814
# 67 Kuwait: 19,350
# 68 Burma: 18,301
# 69 Malta: 17,023
# 70 Azerbaijan: 15,520
# 71 Georgia: 15,029
# 72 Papua New Guinea: 13,292
# 73 Cyprus: 13,023
# 74 Armenia: 12,048
# 75 Oman: 11,782
# 76 Nepal: 8,872
# 77 Dominica: 7,857
# 78 Maldives: 7,026
# 79 Qatar: 5,838
# 80 Albania: 5,303
# 81 Seychelles: 4,297
# 82 Montserrat: 751
Total: 63,531,202
Weighted average: 774,770.8
DEFINITION: Note: Crime statistics are often better indicators of prevalence of law
enforcement and willingness to report crime (I believe, and facts support, crime in
america to be substantially under-reported and under-prosecuted owing to pervasive
corruption, arbitrary enforcement of the law, etc.) than actual prevalence.
SOURCE: The Eighth United Nations Survey on Crime Trends and the Operations of
Criminal Justice Systems (2002) (United Nations Office on Drugs and Crime, Centre for
International Crime Prevention)
The New Terrorist Threat To America: Drunk British Teenagers Brandishing

Insults Steve Watson | College student banned from US for life for name
calling email to White House. I’m sure he’s crying both night and day … you
know, from prospective loss of that new global roach motel (once you go in,
you never come out); viz., the disunited states of america; and wow, talk
about thin skin; who can’t think of far worse to call wobama; and then,
there’s the real terror threat.
Big Sis Iris Scanners: The Prison Without Bars Paul Joseph Watson | Americans
will be forced to prove they are well-behaved serfs to be able to do anything.
Dick Gregory Announces Hunger Strike for 9/11 Truth Dick Gregory | I am
announcing today that I will be consuming only liquids beginning Sunday
until my eightieth birthday in 2012 and until the real truth of what truly
happened on that day emerges and is publicly known.
9/11 – State of Emergency: An Era of Madness and Despair The Excavator | All the
freedoms of the American people that are being stripped by the U.S.
government under national emergency are rationalized because of the
terrorist attacks on September 11.
Doomsday warnings of US apocalypse gain ground Economists peddling dire

warnings that the world’s number one economy is on the brink of collapse,
amid high rates of unemployment and a spiraling public deficit, are
flourishing here.
Greek Default: Why It’s Only A Matter Of Time Is Greek default only a matter of
time? According to the Council on Foreign Relations that’s the story the
bond market is currently telling us.
Zionists are behind Quran desecration: Iran FM Iranian Foreign Minister

Manouchehr Mottaki has described the Quran-burning plan as a Zionist-
orchestrated scheme.
Google ‘damages users’ brains’ Google damages the brains of its users by
offering too much assistance in solving problems, an author has claimed.
Feds Spent $800,000 of Economic Stimulus on African Genital-Washing Program

The National Institute of Mental Health (NIMH), a division of the National
Institutes of Health (NIH), spent $823,200 of economic stimulus funds in 2009
on a study by a UCLA research team to teach uncircumcised African men
how to wash their genitals after having sex.
Ground Zero Mosque Controversy: A CIA Orchestrated Event Kurt Nimmo | The
Ground Zero mosque event was designed to reinvigorate the manufactured
Global War on Manufactured Terror.
Obama Touts Inefficient Program to Defend Stimulus: $1.4m per Green Job
Created Activist Post | Only 390 jobs were created from the $548 million
taxpayer investment, or about $1.4 million per job.
British troops in Afghanistan face heroin smuggling probe British military police
are investigating claims that the country’s servicemen may have, with the
americans, trafficked heroin out of Afghanistan, the Ministry of Defence in
London said Sunday.
United States Joint Forces Command Warns that Huge U.S. Debt Will Lead to
Military Impotence, Default or Revolution [ Little bit late for that … the
warning thing! ] American military and intelligence leaders say that debt is
the main national security threat to the U.S.
Korans vandalized in New York, Washington on 9/11 anniversary Two religious

leaders at a recently-founded offshoot of the Baptist church burned Korans
in a Tennessee back yard on the anniversary of the 9/11 attacks, reports the
NBC affiliate in Nashville.
September 11 anniversary marked by noise and recrimination The September 11

anniversary is usually a day of quiet reflection. But this year the furore over
plans for a mosque near Ground Zero led to a day of noise and
recrimination.
Nine Years After 9/11, Only 1% See Terrorism as Top U.S. Problem Nine years
after the terrorist attacks of Sept. 11, 2001, 1% of Americans mention
terrorism as the most important problem facing the country, down from 46%
just after the attacks.
Nine years, two wars, hundreds of thousands dead – and nothing learnt Did 9/11
make us all mad? Our memorial to the innocents who died nine years ago
has been a holocaust of fire and blood.
When Will the Bad Dream End? Anthony Gregory | It has been nine whole years
since 9/11, and it is starting to look like the “post-9/11″ insanity has become
a permanent feature of the American landscape.
The Silence of September 11 Infowars.com | Silence has followed ever since the
attack and continues until this day, as Peter Dale Scott explains.
Wikileaks to Release Massive Document Collection on Iraq War Ahmad F Al-

Shagra | The Iraq War report is larger than the Afghan War documents made
available for advance review to The New York Times, The Guardian, and Der
Spiegel.
Pastor at centre of Koran-burning controversy flies to New York for September

11th The pastor who planned to burn Korans on today’s ninth anniversary of
the September 11th attacks has flown to New York to challenge the
controversial proposed Islamic centre close to the Ground Zero site.
Koran-burning pastor ‘has gone mad’ and ‘needs help,’ daughter says The
estranged daughter of a Florida pastor who has threatened to burn copies of
the Koran believes he has gone mad and needs help, she said in a German
media interview conducted on Friday.
DHS: Another Attack Could Be On The Way “We can’t guarantee there won’t be
another successful terrorist attack,” Napolitano will tell first responders and
emergency workers.
We have failed, admits UN, as fresh wave of Congo rapes emerges The United
Nations has been urged to go back to basics in protecting civilians in
Eastern Congo after admitting that 500 rapes in the space of a single month
amounted to a serious failure in its mission.
9 Years Later, Nearly 900 9/11 Responders Have Died, Survivors Fight for
Compensation The victims of 9/11 are being remembered in many places
around the world, Russia among them. Dozens have come to lay flowers at
the US Embassy in the Russian capital.
“We’re dead men walking”: The toxic legacy of 9/11 More than 10,000 Ground
Zero workers – known as “first responders” – are suffering from serious and
even fatal illnesses after inhaling the toxic dust cloud caused by the
crumbling towers.
Firefighter battles cancer he got from 9/11 toxins Nine years after the attacks of
9/11, many heroes from that day are still fighting for their lives. One of them
is a firefighter, who is struggling to stay alive for his family.
Compensation for 9/11 First Responders to Be Revisited in Congress With the

nine-year commemoration of the Sept. 11 terrorist attacks on the World
Trade Center approaching on Saturday, thousands of victims, many of
whom risked their lives to save others, are speaking out and saying that the
government has abandoned them in their time of need.
9/11 responders demand justice Last month RT filmed this emotional footage of
9/11 first responders pouring their hearts out at a speech just blocks away
from where the twin towers fell. The rally was in response to Congress
defeating a federal bill that would have provided billions of dollars in health
care for those sickened by toxins released by the collapse of the World
Trade Center towers Sept. 11, 2001.
America’s Torture Doctrine John Galt | We idolize torturers in our favorite TV

programs, and are happy to see our enemies (real and imagined) vicariously
taken apart in order to protect our beacon of freedom.
The Anniversary of 9/11 Washington’s Blog | If even the 9/11 Commissioners

don’t buy the official story, why do you?

REPUBLICAN ACCUSES WHITE HOUSE OF 'CLASS WARFARE'...
Paul says GOP shares blame for deficits...
Kerry flip-flops on tax cuts...
Muslims protest Quran-burning plan...
Florida pastor calls it off...
Christians rip pages from Muslim holy book in front of White House...
Man ignites Quran near Ground Zero...
VIDEO...
Mosque opponents, supporters face off in downtown NYC...
OBAMA: 'We are not and never will be at war with Islam'...
When Will the Bad Dream End? Anthony Gregory | It has been nine whole years
since 9/11, and it is starting to look like the “post-9/11″ insanity has become a
permanent feature of the American landscape.
Nine years, two wars, hundreds of thousands dead – and nothing learnt Did 9/11
make us all mad? Our memorial to the innocents who died nine years ago
has been a holocaust of fire and blood.
Koran-burning pastor ‘has gone mad’ and ‘needs help,’ daughter says The
estranged daughter of a Florida pastor who has threatened to burn copies of
the Koran believes he has gone mad and needs help, she said in a German
media interview conducted on Friday.
We have failed, admits UN, as fresh wave of Congo rapes emerges The United
Nations has been urged to go back to basics in protecting civilians in
Eastern Congo after admitting that 500 rapes in the space of a single month
amounted to a serious failure in its mission.
9 Years Later, Nearly 900 9/11 Responders Have Died, Survivors Fight for
Compensation The victims of 9/11 are being remembered in many places
around the world, Russia among them. Dozens have come to lay flowers at
the US Embassy in the Russian capital.
“We’re dead men walking”: The toxic legacy of 9/11 More than 10,000 Ground
Zero workers – known as “first responders” – are suffering from serious and
even fatal illnesses after inhaling the toxic dust cloud caused by the
crumbling towers.
Firefighter battles cancer he got from 9/11 toxins Nine years after the attacks of
9/11, many heroes from that day are still fighting for their lives. One of them
is a firefighter, who is struggling to stay alive for his family.

Execs with criminal records slip through FHA crackdown (Washington Post)
Center for Public Integrity [ Oh come on! Wake up! What’s the difference? A
criminal record merely implies in pervasively corrupt, meaningfully lawless,
defacto bankrupt america today that they had not the connections of the
biggest criminals in america today; you know, not ‘high enough up on the
food chain’ like the frauds on wall street, etc., who have access, means, and
money for bribes in one form or another to america’s substantial detriment. I
mean, arguendo, who would you feel more comfortable / trusting doing
business with; Martha Stewart or one of those wall street, military industrial
complex ceo’s, etc.. ]A crackdown on reckless mortgage lenders has failed
to root out several executives with criminal records whose firms continue to
do business with the agency in violation of federal law.
Obama defends Democrats' economic initiatives (Washington Post) [ What

initiatives? Hands off fraudulent wall street by no prosecutions, fines, jail,
disgorgement which would have gone a long way to cleansing / righting the
economic / financial system? Rallying congress (see infra – new FASB rule
change to mark to anything valuation of worthless assets and the 157 Rule
change that allowed banks to park all their losses in a bucket called other
comprehensive income (OCI). OCI appears on the balance sheet, but not on
the income statement and thus does not affect earnings ) toward greater
obfuscation of continuing economic dilemma / debacle? Fake data as in the
most recent batch of estimated unemployment claims? Increased war
spending in Afghanistan despite defacto bankruptcy of the nation? ] Obama
said he would use the fall campaign season to remind voters of the sinking
economy he inherited when he took office and what measures he has since
put in place.
Defense cuts could slow D.C. economy for years (Washington Post) [ Well, giving
credence to the 9/11 Truthers and a reason why the attacks were allowed to go
forward and even in part why those mossad agents on the banks of the Hudson in
Weehawken, n.j. were cheering as the twin towers were in flames, war, both legal
and illegal when they’re greedy enough which is almost always, and war
profiteering specifically, is very big business; but alas, more destructive, both
home and abroad, than constructive in both real and economic terms; and then of
course, the geopolitical toll which will linger far longer than the ephemeral short-
term gains for the unscrupulous few. ( I had a full-professor who was also a CPA
for my Cost Accounting Course as required for my MBA in Finance, evening
program, NYU GBA. He referenced his own military experience in pointing out the
folly of much of the military budgetary / spending process in terms of his duties
which included each day firing off munitions (small mortars, ‘rockets’, etc.) at
nothing whatsoever at all, if only to make sure at the end of the month (longer
periods) more munitions / spending would have to be budgeted and purchased
and so on. They’ve certainly come a long way in the ‘budgetary / spending’
process by creating wars to maintain same. This can never be justified; and, after
all, the nation’s defacto bankrupt. ). What isn’t corrupt / fraudulent in washington
d.c., or in America generally, for that matter? ] After surging during post-9/11 era,
the industry now braces for a major contraction and layoffs that could produce a
significant drag on region.
Unemployment Claims Not as Bullish as They Seem (Why? Kudrna:‘The Labor

Department reported Thursday morning that new claims for unemployment
dropped a seasonally adjusted 27,000 to 451,000. Unexpected bullish news, right?
The markets immediately gapped-up on this information as the bulls found good
reason to buy. Unexpected positive news is almost always met with a bullish
move north as it’s rarely priced in. However, a useful tidbit of information about
that shockingly large drop came out after the gap-up. Bloomberg reported that
nine states didn't file claims data to the Labor Department in Washington because
of the Labor Day holiday earlier this week. California and Virginia estimated their
figures and the U.S. government estimated the other seven. Coincidence in the
large drop or not? We will see when the next revision comes out but usually
those revisions fail to make headlines as we are already focusing on future
claims. This has been a great cover-up method for a long time…’
How Government Reporting Will Intensify the Inevitable Simon Maierhofer, On
Friday September 10, 2010, 12:41 pm EDT ‘Natural carbonation keeps a champagne
bottle under constant pressure. The more you shake the bottle, the higher the pressure
gets and the further the cork will eventually fly. Figuratively speaking, the government
has been shaking the bottle. Watch out when the cork pops. On August 10, the
Associated Press reported that the Federal Reserve has found a new trick to jumpstart
the economy. Below is the full quote that shows why we probably can't expect unbiased
assessments coming out of Washington, or the Fed's corner: 'The Federal Reserve
policymakers are pondering ways to jumpstart the economic recovery. The trick: making
sure whatever they do or say doesn't rattle Wall Street.' Some of the recent government
statistics have been 'interesting' no doubt, and we know the administration has spent
trillions in an attempt to lift the economy, but would it go as far as actually fudging
statistics? We'll examine potential cases for 'data spiking' in a moment, but for now we'll
take a look at one of the most popular government statistics, which is misleading to say
the least.
GDP - Like a Flag in the Wind
GDP reports are prepared by the Bureau of Economic Analysis (BEA) and are a science
all in itself. GDP reports are often revised. The 'advance' estimate is published at the
end of the first month following the close of a quarter. In addition to the 'advance'
estimate, there are first and second revisions called the 'preliminary' and 'final'
estimates. The 'final' estimate is reviewed annually, usually in July. Once every several
years, the BEA reviews all data back to 1929. On July 30, the BEA lowered Q2 2010
growth from an estimated 2.7% to 2.4%. The real GDP for all three previous years was
revised as well. It was lowered by 0.2% for 2007, it was lowered by 0.6% for 2008 and it
was lowered by 0.4% for 2009 (see chart below)[chart]. In percentage terms, the real
GDP for 2007 was revised down from 2.5% growth to 2.3%. The 2008 decrease was
lowered from 1.9% to 2.8%, and 2009 growth was revised up from a 0.1% to a 0.2%
increase. In essence, the BEA proved that the recession was (or is) much deeper and
the alleged recovery much weaker than previously reported. Imagine if you would have
based your 2007 and 2008 investment decisions on GDP reports. But wait, there is
more. On August 27, the BEA lowered the Q2 2010 GDP growth from 2.4% to 1.6%.
The financial media, however, applauded the reduction since the final 1.6 number was
still higher than the 1.4% economists expected. Stocks rallied over 2% that day.
Unemployment Numbers - Not Deserving of Your Trust
Unemployment in August increased from 9.5% to 9.6%, but that's ok. Why? According
to the financial media, the increase of unemployment was due to an increase in labor
force. An estimated 6.6 million students will be graduating and joining the labor force
this year. An increasing labor force is a reality, not an excuse to rationalize higher
unemployment numbers. The real unemployment rate (U-6) reported by the BLS (but
neglected by the financial media) jumped from 16.5% to 16.7%. Nevertheless, stocks
rallied nearly 3% when unemployment figures were released on September 3rd.
According to the BLS, the manufacturing sector lost 27,000 jobs in August. This,
however, contradicts the positive August ISM manufacturing report, which rose from
55.5% to 56.3%. Here is the analysis from the Institute for Supply Management: 'A PMI
in excess of 42 percent, over a period of time, generally indicates an expansion of the
overall economy. Therefore, the PMI indicates growth for the 16th consecutive month in
the overall economy, as well as expansion in the manufacturing sector for the 13th
consecutive month.' If you ask the unemployed, it doesn't feel like the manufacturing
sector is improving.
Changing Rules to Accommodate Growth
Amidst the biggest financial meltdown since the Great Depression, the administration
had to act quickly. The sheer amount of toxic assets overwhelmed the banking
(NYSEArca: KBE - News) and financial sectors (NYSEArca: XLF - News), which led to
the fall of Lehman Brothers and credit contraction around the globe (NYSEArca: EFA -
News). It was impossible to eliminate trillions of bad loans or revive the ailing real estate
market (NYSEArca: IYR - News). It was impossible to prop up faltering sectors like
consumer discretionary (NYSEArca: XLY - News) and technology (NYSEArca: XLK -
News). In short, it was impossible to change reality. It was, however, possible to change
the prevailing perception and hide the root problems. In fact, it wasn't just possible; it
proved to be fairly easy. The government simply urged the Financial Accounting
Standards Board (FASB) to change some rules. On April 2, 2009, the FASB changed
Rule 157. The ripple effect caused by massive real estate losses suffered by the 'too big
to fail' banks (NYSEArca: IYF - News), as well as regional banks (NYSEArca: KRE -
News), threatened the integrity of the entire system. The 157 Rule change allowed
banks to park all their losses in a bucket called other comprehensive income (OCI). OCI
appears on the balance sheet, but not on the income statement and thus does not affect
earnings. In late 2009 and early 2010, banks exceeded their earnings expectations - at
least on paper - which created the perception that the economy was recovering. As it
turns out, the timing for the Rule 157 change was perfect and coincided with the biggest
stock market rally in recent history. A 50%+ run in the Dow Jones (DJI: ^DJI), S&P
(SNP: ^GSPC), and Nasdaq (Nasdaq: ÎXIC) intensified the perception that the
economy was on the mend. Before the accounting rule change and other government
efforts, the ETF Profit Strategy Newsletter predicted the biggest rally since the October
2007 all-time highs. Via the March 2nd Trend Change Alert, the newsletter advised to
close out previously recommended short positions (some gained 100% and more) and
buy long and leveraged ETFs, many of which gained 50%, 100% or more.
Back to the Future
All was well until April 2010. Prior to the April highs, Mr. Bernanke, Mr. Geithner, and
the President were campaigning for their fair share of credit for rescuing and reviving
the country. Rather than examining and disclosing some of the government's
questionable methods, the media jumped on the bandwagon and tickled the alleged
'saviors' egos. By doing so, the pressure in the champagne bottle was increased. More
investors bought stocks under the mistaken view the economy had improved. This
increased the pool of stock owners and the pipeline of sellers. As per the most recent
GDP numbers, investors found out that the state of the economy is worse than
previously thought. Furthermore, the government has lost credibility and some of its
associated ability to inflate stock market confidence. Watch out, once the cork blows!
Investors leaving the market could send prices falling as fast as champagne gushing out
of a bottle. In fact, this exodus probably started already. On April 16, the ETF Profit
Strategy Newsletter noted that: 'The cork seems to have popped. Reality is setting in.
The pieces are in place for a major decline.' Following the April highs, the ensuing
decline erased eight months worth of gains in a mere 22 trading days. An initial wave of
somewhat critical media reports quickly faded as the stock market stabilized. Sideways
trading tends to calm the nerves and get investors re-engaged before the hammer
drops again. What's the moral of the story? Faulty government data and trend-
following media reports tend to distort the real picture and postpone and
intensify the inevitable.
The ETF Profit Strategy Newsletter combines the analysis of various indicators with
common sense and out-of-the-box thinking to formulate a short, mid, and long-term
forecast.’
Successful Economic Policies? For Whom? Last week, in the wake of another
uptick in the official unemployment rate, the administration continued to
claim that their economic policies were working, just not fast enough.
Can America Recover When The Majority Of Americans See A Double Dip, And
Think The Country Is Fundamentally Broken? Earlier this week we asked,
can the economy really recover when 92% of the population says the
economy is garbage in a survey? That was the number in a WSJ/NBC poll,
and it would seem to indicate a major headwind in terms of sentiment.
IMF Resumes Direct Gold Dumping, Sells 10 Tons Of The Shiny Metal To
Bangladesh It has been a while since the IMF sold gold directly to sovereign
countries.
U.S. drops in competitiveness ( Washington Post ) [ Fourth place for pervasively

corrupt, defacto bankrupt america? I don’t think so; not in their wildest dreams,
and there’s a lot of that in america these days, but little else. Reality says
america’s place should be in the twenties at best.
Obama rating hits new low Overall, 41% of voters say they at least somewhat
approve of the president’s performance. Fifty-eight percent (58%)
disapprove.
Congressman Ron Paul Hints At 2012 Presidential Campaign Steve Watson | “It’s
something I think about every single day.”
Hamilton and Kean Call for Domestic Terrorism Agency Kurt Nimmo | A
bipartisan effort is underway to demonize patriotic Americans as domestic
terrorists.
Doctors Giving Veterans Questionnaire to Determine Mental Illness Infowars.com

| In 2007, a bill passed in the House and Senate allowing government to deny
Second Amendment to veterans.
Drudgereport: Thousands of Afghans protest Quran-burning plan...

Tennessee preacher to burn Quran...
Topeka, Kansas church vows burning...
Protester plans to burn on Wyoming's Capitol steps...
FLASHBACK: Muslims Burn Bibles and Destroy Crosses...
Ground Zero imam ignores pastor's two-hour deadline...
12 soldiers face trial after Afghan civilians 'were killed for sport and their fingers
collected as trophies'...
U.S. drops in competitiveness ( Washington Post ) [ Fourth place for pervasively

corrupt, defacto bankrupt america? I don’t think so; not in their wildest dreams,
and there’s a lot of that in america these days, but little else. Reality says
america’s place should be in the twenties at best. Previous: U.S. drops in
competitiveness (Washington Post) [ Singapore, Sweden, … ? Don’t make me
laugh! From defacto bankrupt, meaningfully lawless america’s perspective, this
fallen ranking was a gift and one must be asking, what were they smoking (or
whose money were they taking?) and is the rest of the world really that bad off? ]
Large deficits and a weakened financial system make the U.S. less competitive in
the global economy, according to World Economic Forum's new ranking.
Sweden Is A Better Place To Do Business Than The U.S. – [Well, that part is true,
but …]. ‘…Sweden, by contrast, has “the world’s most transparent and efficient
public institutions, with very low levels of corruption and undue influence.”
Which loosely translated from wonk-speak sounds like, “You’re better off dealing
with honest socialists than crony capitalists.”’ [ True enough, but I still don’t buy
it (the rankings), especially america’s fourth place (as opposed to lower) ranking.]
Capitol Hill workers rack up back taxes ( Washington Post ) [ When you consider
the pervasive corruption in their ranks and the redundancy / non-productive
nature of government jobs, the case becomes irrefutably stronger for the
abolition of same; particularly the lifetime appointees along with their plush
accouterments, courts, etc.. Then there’s tiny tim geithner’s tax red flag,
scofflaw hypocrit that he is. ] Capitol Hill employees owed $9.3 million in
overdue taxes at the end of last year, a sliver of the $1 billion owed by
federal workers nationwide but one with potential political ramifications for
members of Congress.
Yeah! The lack of prosecutions and teeth therein has led to continued and bolder
frauds and a complicit u.s. government! Stocks extend gains after drop in jobless
claims [ Washington Post ] I was very disappointed to see this headline without
disclaimor. Very disheartening.
[ It’s really quite amazing, and you won’t get this from the ‘money honeys’ or
other mainstream drivel (actually I got this from the CBS news reporter, 1070am
radio, but NOT their business report), the so-called better than expected jobs
report (albeit bad at 451,000 continuing claims) was actually based upon federal
government estimates for those reports that were not submitted owing to the
holiday … and we all know how conservative the u.s. government is in making
estimates, especially in election cycles when desperation abounds … riiiiight! (
Drudgereport: GOV'T MAKES IT UP: JOBS NUMBERS 'ESTIMATED' FOR WEEK...
'BETTER THAN EXPECTED'... ) Then there’s the ‘need more capital’ news from
among the strongest players in the European sector, viz., Germany’s Deutsch
Bank, which can only mean, particularly in light of their adoption of the fraudulent
wall street american mark to anything valuation of worthless paper, still out there
in the many (hundreds?) of trillions. (see infra, ‘…ECB chief economist Jurgen
Stark tells German MPs that the banking system is insolvent. This led to complete
shock because the newspaper headlines from July suggested the opposite. The
German policy establishment is under the illusion that its banking system is
sound because it passed what turned out to be fraudulent stress test…’) Now, if
the German banking system’s insolvent, is there a term for double, triple,
quadrupal, etc., insolvent for what the american banking system must be? One
doesn’t need clairvoyance to know that only bodes ill. Stocks Cling to Skinny
Gains, Can't Shake Banking Concerns ]
The Eerie Implications of Market Volume and Mutual Fund Flows ‘… Here's a
more compelling question: If two-thirds or more of daily volume is a function of
high-frequency trading, what are the implications for index prices over the long
haul? A year has passed since I posted some charts illustrating the incredible
ratio of S&P 500 volume devoted to five financial stocks. Today's game is no
doubt different from last September. It may be about making money, but it
probably has little to do with investing — which may explain a lot about current
volume metrics and mutual fund flows. I'll update these volume charts
periodically in the months ahead.’
Report From Europe: Fall in U.S. Weekly Jobless Claims Cheers Stocks The Mole
… Today is Rosh Hashanah, the jewish New Year, in which it is believed the
names of the righteous are recorded in the book of life, those in the middle
ground are given ten days to repent and become good, while the wicked are
deleted from the book of life. In essence, it is make or break time for the year. One
wonders if we might be entering a similar phase for Ireland with landmark
decisions over the fate of Anglo Irish Bank taken (with the cost of the funeral to
be know in early October) and the funding cliff for Irish banks to refund some
€25bn of maturing debt this month pending (though I feel fears over their capacity
to roll this debt is way overblown)… Today’s Market Moving Stories
• Figures showed that the July US trade deficit declined more than expected
today and reached -$42.8bn. Thus, June’s spurt to $-49.8bn seems to have
been a blip in the data. In July, total exports gained M/M 1.8 percent while
imports decreased 2.1 percent. As for growth, foreign trade is still set to be
a slight drag on GDP in 2010Q3. After all, imports started into Q3 on a very
elevated level (and significantly above the 2010Q2 average). However, the
drag will be much less than Q2’s -3.4pp.
• While US initial jobless claims fell 27k to 451k last week. Claims moved
sideways since the start of the year (the average since Jan is 466k),
indicating that the improvement on the labour market did make scant
headway. All in all, after a long spell of weak data, today’s releases offer
some respite.
• In a combative speech, Obama conceded his policies have “fed the
perception that Washington is still ignoring the middle class,” was billed as
a major economic address to unveil a new round of proposals to kick-start
a flagging economic recovery. The president did introduce three new policy
proposals the White House has been rolling out for nearly a week: $50
billion in additional infrastructure spending, a permanent and expanded
research and experimentation tax credit and a measure allowing
businesses to write 100 percent of their investment costs off their taxes
through 2011. But Mr. Obama’s speech was far more about politics than
economics.
• ECB chief economist Jurgen Stark tells German MPs that the banking
system is insolvent. This led to complete shock because the newspaper
headlines from July suggested the opposite. The German policy
establishment is under the illusion that its banking system is sound
because it passed what turned out to be fraudulent stress test. Jurgen
Stark is reported to have told a group of Christian Democrat MPs in Berlin
that the German banking sector as a whole is undercapitalised. More
controversially, he advised them to privatise the saving banks – the
ultimate taboo because the savings banks are consider sacrosanct. FT
Deutschland reported that Stark also relayed the assessment of US
bankers that the German system could not conceivably survive the
introduction of the tougher capital rules of Basel III.
• Japan has no choice but to intervene in currency markets to prevent the
yen’s strength from decimating the nation’s industry, Barclays Capital said.
The yen reached 83.35 versus the dollar yesterday, the highest since May
1995, threatening Japan’s export-led recovery. Industry and jobs won’t
likely return from abroad even if the currency weakens eventually, and that
prospect may force policy makers to intervene “in the immediate future,”
said Tetsufumi Yamakawa, co-head of Japan research at Barclays. “If the
yen’s strength lasts at current levels, factories, investment and jobs will all
move overseas,” Yamakawa said at a forum in Tokyo yesterday.
• Australian job growth exceeded forecasts in August, sending the

unemployment rate down to 5.1% and driving the nation’s currency higher
on speculation the central bank will resume raising interest rates.
Employers added 30,900 workers in August, exceeding the median forecast
for 25,000 in a Bloomberg News survey of 25 economists, the statistics
bureau said in Sydney today. The jobless rate matched the lowest level
since January 2009.,,
Worth a read: Michael Lewis has a field day: Beware of Greeks Bearing Bonds
(Vanity Fair)
Tiny tim geithner Says China Needs to Let Market Drive Up Yuan Bloomberg | U.S.
Treasury Secretary Tiny tim geithner said China must let the yuan rise more
quickly to show trading partners that it’s following through on its promises
[ Riiiiight! … Everyone’s just clamoring for american advice on the global
meltdown precipitated by ‘american advice and consent’.]
Bad Math - Why The Bullish Case Doesn't Add Up Simon Maierhofer, On
Wednesday September 8, 2010, 3:19 pm EDT
1+1=2 2+2=4
The simplicity and accuracy of those calculations is undeniable. How about this
equation? Fundamental Weakness + Technical Sell Signals + Overpriced Stocks =
Lower Stock Prices. This calculation also seems to be simple and accurate. Let's look at
some equations that don't make sense.
1+1=3 or Better Earnings = Higher Stock Prices
2+2=5 or Weaker than Expected Economy = Rising Stock Prices
3+3=7 or Positive Analyst Estimates = Higher Stock Prices
4+4=9 or Technical Sell Signals = Higher Stock Prices
5+5=11 or Overvalued Stocks = Higher Prices
Too Big To Fail Global Banks Will Collapse Between Now and First Quarter 2011
Matthias Chang | Quantitative Easing spearheaded by the Chairman of
Federal Reserve, Ben Bernanke, delayed the inevitable demise of the fiat
shadow money banking system slightly over 18 months.
“I Am Jim Cramer And I Approve Of The President’s Message (Because The

Market Moved Up By 3 Points)” There are women (and men) who will do
anything for a price. Then there is Jim Cramer.
Jim Sinclair: Strap In For Gold’s Move To $1650 By January Now that
expectations for Gold at very significant prices are being offered by various
rational sources, there is one thing you can be sure of. That one thing is
$1650.
Obama Added More to National Debt in First 19 Months Than All Presidents from
Washington Through Reagan Combined, Says Gov’t Data In the first 19
months of the Obama administration, the federal debt held by the public
increased by $2.5260 trillion, which is more than the cumulative total of the
national debt held by the public that was amassed by all U.S. presidents
from George Washington through Ronald Reagan.
Here Are 13 Signs That We’re Actually In A Depression Right Now Gregory White |
David Rosenberg has outlined, in his latest letter, the 13 reasons with this
so-called recovery is actually a depression.
Castro Admits Communist Economics a Failure
Pastor Terry Jones Calls off Koran Burning, Ground Zero Mosque May Be Moved
Pastor Terry Jones today canceled his plan to burn Korans at his Florida
church after claiming he has struck a deal with a New York Muslim cleric to
relocate the so-called Ground Zero mosque.
UN Blueprint: Dismantle Middle Class, Build World Government A UN blueprint

for putting the organization back at the forefront of global governance
alarmingly reveals the agenda to re-brand global warming as
“overpopulation” as a means of dismantling the middle classes while using
“global redistribution of wealth” and increased immigration to reinvigorate
the pursuit of a one world government.
US soldier ‘kept Afghan body parts’ At least two of the five US soldiers charged in
the deaths of three Afghan civilians had kept body parts taken from Afghan
corpses and threatened subordinates, according to new documents released
by the US army.
Random Pat-Downs Turn PATCO Into Police State “We can conduct any kind of
search we want,” said McClintock. “We could ask TSA to bring wands or X-
ray machines like they have in airports, though we don’t think that’s
appropriate for PATCO riders at this time.”
Gerald Celente Calls Out General Petraeus On Koran Warning Hypocrisy “You
hear someone like General Petraeus saying burning the Koran could be
dangerous to American troops – hey General Petraeus – how about invading
Arab countries and occupying them and killing innocent people? You think
that could be dangerous to American troops? Oh no no, our foreign policy
has nothing to do with this – they don’t like Americans because we go to
Disneyland and shop at Walmart.”
Ground Zero Mosque Imam: If You Don’t Build It, They Will Attack Moving the
project to another location would strengthen Islamist radicals’ ability to
recruit followers and will likely increase violence against Americans, the
imam said.”
Clinton Talks World Government at the Council On Foreign Relations Kurt Nimmo |
Simply substitute the phrase “American leadership” with “leadership by the
globalist cabal.”
Barack Obama: Puppet on a String Jurriaan Maessen | The United States is

unfolding an agenda that has been pushed for by international banks in
conjunction with the CIA.
Business as Usual: Fed Court Slaps Down Torture Lawsuit Against CIA Kurt
Nimmo | Once again, national security trumps the rule of law and the
corporate media provides cover.
UN Blueprint: Dismantle Middle Class, Build World Government Paul Joseph

Watson | Globalists set out agenda to re-brand global warming as
overpopulation in bid to impose carbon taxes.
Claims of Recovery But Results Nowhere To Be Found Bob Chapman | The
American public is alarmed at what they see going on.
Drudgereport: GOV'T MAKES IT UP: JOBS NUMBERS 'ESTIMATED' FOR WEEK...

'BETTER THAN EXPECTED'...
Treasuries Tumble Following Weak 30-Year Sale...
600 Lockheed execs take buyout (Washington Post) [ Talk about having your
fingers on the economic / fiscal pulse of the nation. This should be a new leading
economic indicator which, unlike many of the others, is less prone to
manipulation. All hail, the ‘golden goose’ is dead! Drudgereport: MORGAN
STANLEY: U.S. Government Bond Defaults Inevitable … This is a global
and disgorgement imposed. ] The move reflects a shift underway as defense
contractors scramble to prepare for Pentagon budget cuts.
Reform's unexpected fallout (Washington Post) [ Riiiiight! That reform thing …

everything but prosecution of the perps who are back to their churn and
earn ways as some of their worthless paper moving ways have been
legislatively sanctioned / adopted in the form of mark to anything valuation
of worthless assets / paper which debacle is waiting to rear that ugly head! ]
Nation's battle for regulatory reform wasn't supposed to have this kind of
collateral damage. But the new law is threatening the existence of a day-care
center, which has operated for 24 years in the District.
U.S. drops in competitiveness (Washington Post) [ Singapore, Sweden, … ?
Don’t make me laugh! From defacto bankrupt, meaningfully lawless america’s
perspective, this fallen ranking was a gift and one must be asking, what were they
smoking (or whose money were they taking?) and is the rest of the world really
that bad off? ] Large deficits and a weakened financial system make the U.S. less
competitive in the global economy, according to World Economic Forum's new
ranking. Sweden Is A Better Place To Do Business Than The U.S. – [Well, that
part is true, but …]. ‘…Sweden, by contrast, has “the world’s most transparent
and efficient public institutions, with very low levels of corruption and undue
influence.” Which loosely translated from wonk-speak sounds like, “You’re better
off dealing with honest socialists than crony capitalists.”’ [ True enough, but I still
don’t buy it (the rankings), especially america’s fourth place (as opposed to
lower) ranking.]
Afghans question U.S.-style capitalism (Washington Post) [ As indeed they

should inasmuch as the same is neither capitalism nor american style in the
bank's headquarters Wednesday was far from that modern ideal.
Fed sees widespread slowdown of growth (Washington Post) [ Stocks rally

anyway … the ‘miracle of computerized programmed trading’ even if the math
and fundamentals don’t add up …
Bad Math - Why The Bullish Case Doesn't Add Up Simon Maierhofer, On
Wednesday September 8, 2010, 3:19 pm EDT
1+1=2 2+2=4
equation? Fundamental Weakness + Technical Sell Signals + Overpriced Stocks =
Lower Stock Prices. This calculation also seems to be simple and accurate. Let's look at
some equations that don't make sense.
1+1=3 or Better Earnings = Higher Stock Prices
Earnings season is over. Most companies beat earnings but issued cautious forecasts.
This is particularly true of the tech (NYSEArca: XLK - News) and financial sectors
(NYSEArca: XLF - News). By large, profits are still driven by cost-cutting, not organic
growth. Retail sales, which make up about one third of the economy, continued to fall
after the second quarter ended. Additionally, the expectation that taxes will go up might
have moved some companies to pull some of next year's income into this year. This
can't be good for Q3 and Q4 profits. As we've seen in January and April of 2010,
positive earnings reports are not bullish for stocks, especially if future guidance is weak.
2+2=5 or Weaker than Expected Economy = Rising Stock Prices
On July 30, the Bureau of Economic Analysis (BEA) lowered the Q2 Gross Domestic
Product (GD) growth from an estimated 2.7% to 2.4%. On August 27, the Q2 GDP was
lowered further to a jaw-dropping 1.6%. But it didn't stop there. The real GDP for all
three previous years was revised as well. It was lowered by 0.2% for 2007, it was
lowered by 0.6% for 2008, and it was lowered by 0.4% for 2009. In percentage terms,
the real GDP for 2007 was revised down from 2.5% growth to 2.3%. The 2008 decrease
was lowered from 1.9% to 2.8% and 2009 growth was revised up from a 0.1% to a 0.2%
increase. In essence, the BEA proved that the recession was (or is) much deeper than
perceived and the alleged recovery much weaker than previously reported. This comes
as no surprise, as the key sector of the financial debacle - real estate (NYSEArca: IYR -
News) - remains in a funk. The U.S. Census Bureau reported that the number of vacant
properties, including foreclosures, residences for sale, and vacation homes, reached
18.9 million. Fannie Mae and Freddie Mac continue to lose money. Has anyone ever
wondered how banks (NYSEArca: KBE - News) can make money on the same kind of
loans that pushed Fannie and Freddie to the brink of ruin? Since bad real estate loans
triggered the post 2007 economic meltdown, how can the economy recover without real
estate leading the way?
3+3=7 or Positive Analyst Estimates = Higher Stock Prices
A recent Associated Press article observed that 'analysts only seem to hit the mark with
their estimates in the strongest economic times (2003 - 2006).' Why? 'The problem is
that analysts get most of their information from the companies they cover. Corporate
managers have every incentive to stay positive for as long as they can.' Is that true; as
true as 1+1=2? On April 26, the day the S&P (SNP: ^GSPC) topped at 1,219, the Dow
(DJI: ^DJI) at 11,258, the Nasdaq (Nasdaq: ÎXIC) at 2,535, Bloomberg reported the
following: 'U.S. stocks cheapest since 1990 on analyst estimates.' Contrary to analyst
estimates, the ETF Profit Strategy Newsletter stated that 'the potential exists that
Monday's high marked a significant top.' Since April, the broad market dropped as much
as 17%. In March 2009, with the Dow below 7000 and the S&P below 700, analysts
lowered their earnings forecasts from $113 in April 2008 to $40. On March 2nd, the ETF
Profit Strategy Newsletter sent out a Trend Change Alert and recommended to buy long
and leveraged long ETFs such as the Direxion Daily Financial Bull 3X Shares
(NYSEArca: FAS - News) and Ultra S&P 500 ProShares (NYSEArca: SSO - News).
If you care to know, until recently, analysts estimated that earnings for the S&P 500 will
exceed their 2006 all-time high, in 2011. Based on that assumption, stocks are cheap.
How about that for flawed math?
4+4=9 or Technical Sell Signals = Higher Stock Prices
The 200-day moving average (MA) is one of the best-known technical indicators, as it
provides delineation between technically healthy and sick stocks. On May 20, the S&P
closed below the 200-day MA for the first time since late 2007. Every attempt to rally
and stay above it has since failed miserably. On July 2, the 50-day MA for the S&P
dropped below its 200-day MA for the first time since late 2007. The same holds true for
mid caps (NYSEArca: MDY - News), small caps (NYSEArca: IWM - News) and nearly
all individual sector indexes. For good reason, this is called a Death Cross. Over the
past ten years, the death cross has been accurate 75% of the time, with a 19.72%
average return on six winning trades and 6.95% average return on two losing trades.
[chart] In addition to the Death Cross, there are two head and shoulders patterns, one in
the making for over 10 years, and the other has the breadth suggestive of a major
meltdown (see September ETF Profit Strategy Newsletter).
5+5=11 or Overvalued Stocks = Higher Prices
As explained above, based on overly optimistic earnings estimates, analysts believe
that stocks are cheap. Rather than basing a future outlook on estimates, it makes sense
to use facts as a foundation for any outlook. Why add an extra variable to what's already
an unpredictable market? Ask Yale Professor Robert Shiller, who's done extensive
research on the subject of valuations, and he'll tell you stocks are historically overvalued
based on the current P/E ratio. Compare today's P/E ratio with the P/E ratio seen at
major market bottoms, and you'll see that stocks are overvalued by more than 50%.
Another gauge that doesn't lie is dividend yields. A company's dividends are a direct
reflection of cash flow and financial health. The current yield is 2.65% for the Dow and
2.05% for the S&P. Dividends are close to their all-time low set in 1999 (we know what
happened then). This means that companies are cash strapped and overvalued.
Looking at a long-term chart of dividend yields plotted against stock prices shows
clearly that markets don't bottom until dividends skyrocket. Just as ice doesn't thaw
unless the temperature moves above 32 degrees, the economy won't thaw and show
signs of life unless P/E ratios drop to, and dividend yields rise to, levels seen at major
market bottoms. The ETF Profit Strategy Newsletter includes a detailed analysis of four
valuation metrics, along with short-term target ranges for stocks and the ultimate market
bottom. Based on simple math and common sense, the July lows are certainly in
danger. But it doesn't stop there.
Report From Europe: Panic Amongst the PIIGS (Seeking Alpha – The Mole)
[ Sounds far from hunky-dory to me and as the wall street frauds would have you
believe and used as a rallying point this day. Total b*** s***! ] ‘U.S. stocks fell for the
first time in five days Tuesday, ending the longest streak of gains for the S&P 500 Index
since July, on concern the European debt crisis may worsen and hamper global growth.
Bank of America (BAC) and Citigroup (C) fell at least 2% as European banks slid on
concern stress tests understated potential losses from sovereign debt. Meanwhile
ConocoPhillips (COP) and Chevron (CVX) slumped more than 1.2% as crude oil fell the
most in a week. But Oracle (ORCL) rallied 5.9% after naming Mark Hurd, former chief
executive officer of Hewlett-Packard (HPQ) as president. Today, despite some token
buying by the ECB and a decent Portuguese bond auction, the bond vigilantes have
again been out doing their worst pushing the Irish / German 10 year spread out to levels
not seem since 1988 when the debt GDP ratio was 118% . Indeed yesterday saw the
worst single daily performance by Irish Government bonds ever in terms of spread
widening. Greece is also back in the crosshairs in response to a downward revision to
Q2 Greek GDP to -1.8% from -1.5% originally, and on news the National Bank of
Greece plans to raise Eur2.8 bln of capital. The latter may be especially alarming in the
current environment, but really reflects a desire for extra security and also a cash hoard
to potentially spend on weaker rivals. ATEbank stands prominently in this respect.
(picture)
Today’s Market Moving Stories
The stand-out mover in FX today was GBP, which rallied sharply, largely it would seem
on news that Vodafone (VOD) has sold its stake in China Mobile and intends to use
70% of the proceeds (£4.2bn) to fund share buybacks. The macros community had
started to build GBP shorts in recent days and this M&A flow prompted a flurry of short-
covering, assisted as well by better than feared Halifax house price data.
Irish Banking
According to the Irish Times this morning, the bank’s chairman has stated that a
statement on Anglo should be expected today. Who will make it or what the nature of
the announcement will be is not evident, but keep eyes peeled around 4pm. Recent
media reports have indicated strongly that an orderly wind down of the bank over 10-
15yrs is the new preferred option. But what the markets are really looking for is an
update on the total FINAL bottom line kitchen sink cost of the bailout and whether its
closer to Eur 25bn or S&P’s recent & much criticized Eur 35bn figure. UPDATE – SEE
VERY BOTTOM OF THIS POST. ..
Japan
Japanese Finance Minister Yoshihiko Noda said he is prepared to take “bold” action on
currencies, including intervention in foreign-exchange markets, after the yen reached a
15-year high against the dollar. “We will take bold action if necessary and naturally that
can include intervention,” Noda told lawmakers in parliament today. “We have to use
every option available as a strong yen is likely to have a severe impact on companies.”
The yen rose to 83.52 per dollar yesterday, the highest level since June 1995, as
concerns about weakening growth in the U.S. and Europe bolstered the currency’s
appeal as a refuge.
UK Outlook
A U.K. index of hiring for permanent jobs in August showed the slowest growth pace in
10 months, KPMG LLP and the Recruitment and Employment Confederation said. The
gauge of full-time job placements dropped to 56.3 from 60.2 in July, the groups said in
an e-mailed report today in London. That’s the slowest pace since October. Readings
above 50 indicate an increase in hiring. The U.K. is bracing itself for a period of austerity
as Prime Minister David Cameron pledges to reduce the country’s record budget deficit.
U.K. shop price inflation accelerated in August as the price of food rose at the quickest
annual pace in over a year, a survey showed Tuesday. Total shop price inflation was
1.7% on the year in August and 0.1% on the month, compared with a 1.5% annual rate
and 0.1% monthly decline in prices in July, the monthly survey by the British Retail
Consortium showed. That was due to a more-than-one percentage point rise in the cost
of food. Food prices were 3.8% higher in August than a year earlier, while food prices
rose 0.2% from July. And July’s UK industrial production figures suggest that the
manufacturing sector continues to enjoy steady, if unspectacular, growth. The 0.3% rise
in manufacturing output was the third such gain in a row and pushed the yoy rate of
output growth up to a new cycle high of 4.9%. Overall industrial production saw a similar
monthly gain. For now, then, the output data are defying the rather gloomier tone of
some of the recent industrial surveys, such as last week’s CIPS report on
manufacturing. But it is worth remembering that the surveys normally lead the hard data
by a few months, so it would be no surprise if output growth were to start to weaken
over the next few months. And even if output posts similar increases in August and
September, industry won’t make as strong a contribution to GDP growth in Q3 as it did
in Q2. Overall, UK industry is still doing pretty well, but it may not last too much longer.
(picture)
Company / Equity News
• UK homebuilder Berkeley Group has issued an interim management statement

this morning covering the period from 1st May 2010 to 31st August 2010. The
group pointed out that demand for properties over the period has been resilient,
particularly in London which has a shortage of supply and specific demand from
international purchasers. Outside of London, which is more reliant on the UK
domestic economy, a lack of credit availability and weak consumer confidence is
weighing on transactions currently.
• Barratt Developments also reported full year results this morning. The group
reported a full-year loss of £118.4m compared to a loss of £468.6m. Market
expectations were for a loss of £125m. Revenue declined by 11% to 2.04bn with
the group selling 11,377 homes during the period, compared with 13,277 last
year. The group’s operating margin increased to 5.9% from 1.8% a year earlier.
The group expects a ‘modest’ increase in average selling price this year,
however the group noted that the outlook for new housing ‘remains challenging’.
For clients looking for exposure to a UK home builder, Persimmon is my
preferred play.
• Securities firms (investment banks) around the world will cut as many as 80,000
jobs in the next 18 months as revenue growth begins to slow, said Meredith
Whitney, the former Oppenheimer & Co. analyst who now runs her own firm. The
reductions, about 10 percent of current levels, will come after 2010 compensation
payments. “The key product drivers of Wall Street’s revenues and profits over the
past decade have been in a structural decline over the past three years,” Whitney
said in the report. “2010 marks the first year in many in which Wall Street-centric
firms will go through structural changes.”
• Vodafone’s $6.6 billion sale of its stake in China Mobile Ltd. is the biggest
divestment since Chief Executive Officer Vittorio Colao took charge in 2008.
Investors want to know what’s next. Vodafone sold its 3.2 percent stake in
China’s largest mobile phone company today. About 70 percent of the proceeds
will be returned to shareholders through a stock repurchase and the rest will be
used to pay down debt, Newbury, England-based Vodafone said in a statement
yesterday.
• Nokia Oyj, the world’s biggest maker of mobile phones, has a lot riding on its
annual showcase event next week as it tries to claw back lost ground to Apple
Inc.’s (AAPL) iPhone and devices based on Google’s (GOOG) Android software.
The Finnish company is likely to focus attention at Nokia World in London on its
high-end Symbian smartphone line, including the touch screen N8, its latest effort
to take on Android and iPhone handsets.
• Google’s CEO Eric Schmidt said the company plans to extend its Web television
service from U.S. viewers to global consumers in 2011. Google has an
agreement with Sony Corp. (SNE) to launch Web TV in the U.S. this fall, while
Samsung Electronics Co. (SSNLF.PK), the world’s largest television
manufacturer, said today it may make sets run by Google’s software to compete
with Sony and Apple Inc. in the market for TVs that access movies, shows and
games online.
• The life of Germany’s nuclear power plants will be extended by up to 15 years
under a deal agreed between energy companies and the government of
Chancellor Angela Merkel. Germany’s energy giants will pay [euro]15 billion to
fund research into renewable energy and Berlin will, in return, set aside a 2000
agreement forced by the Schroder government to wind down all nuclear energy
plants by 2025.
• According to the FT, Ryanair (RYAAY) may return to the market for a purchase
of up to 300 airplanes, the Financial Times said late Tuesday, citing an interview
with chief executive Michael O’ Leary. O’Leary told the FT his company also
plans on writing to aviation authorities asking to use a single pilot for short-haul
flights, the report on the FT website said.
• Evidence emerged yesterday that the strained relations of late between Tullow
(TUWOY.PK) and the Ugandan Government over the issue of tax arising from
the Heritage Oil transaction eased somewhat based on comments attributed to
the Energy Minister. Questioned on the Government stance regarding the
recently rescinded Kingfisher licence in Block 3A and Tullow’s ability to redress
the situation, the Energy Minister appeared to soften the Government position
indicating a favorable response should Tullow apply.
• Dana Petroleum (DNPXF.PK) offered a strong defence this morning against the
unsolicited offer of £18 per share from the Korean National Oil Company (KNOC)
and also announced the widely anticipated acquisition of Petro-Canada’s UK
assets for a cash consideration of £240m ($372m).
And finally UPDATE – Text of announcement on Anglo Irish

The Minister for Finance today briefed his Government colleagues on the strategic
options for the future of Anglo Irish Bank. The Minister conveyed to the Government the
views of the Board of Anglo Irish Bank, the Central Bank, the National Treasury
Management Agency, the Department of Finance, the EU Commission and his own
assessment of the position.The Government decided that Anglo Irish Bank will be split
into a Funding Bank and an Asset Recovery Bank. Anglo Irish Bank has not expanded
its loan book since it was nationalised in early 2009 and this will remain the case. It is
intended that in due course the Recovery Bank will be sold in whole or in part or that its
assets will be run off over a period of time. The guaranteed position of depositors will be
unchanged by the new arrangements and no action is required of them as a result of
today’s announcement. The depositors will become customers of the Funding Bank
which will be fully capitalized and continue as a regulated bank. In order to restore the
reputation of the Irish Financial System it is essential to bring finality to the problem of
Anglo Irish Bank – our most distressed institution. The Government’s primary objective
in dealing with Anglo Irish Bank has been to minimise the cost of this distressed bank to
the Irish taxpayer. The Board of Anglo Irish Bank submitted its preferred option to the
Minister and to the European Commission at the end of May for consideration under
State Aid rules. The board’s plan envisaged splitting the bank into an asset
management company and a new good bank. The asset management company would
have managed out over time the bank’s lower quality assets remaining after the
transfers to NAMA. The new good bank would have managed the remaining share of
the loan book, retained the bank’s deposit funding and sought new lending opportunities
to grow the bank. The Minister acknowledges the good faith and hard work of the board
in producing a credible proposal for the future of the bank. However, the Government
has concluded that this plan in its current form does not now provide the most viable
and sustainable solution to ensure the continued stability of the Irish banking system.
Resolution Proposal
In these circumstances, the Government has decided to opt for a variation of the
board’s restructuring proposal. The Government’s decision does not affect existing
guarantee arrangements. Under the restructuring plan, the Funding Bank will be a
Government-backed/guaranteed specialist deposit bank which will contain the bank’s
deposit book. It will be a stand-alone, regulated bank, completely separated from
Anglo’s loan assets and it will be owned directly by the Minister for Finance. This bank
will not engage in any lending, but will provide a secure home for Anglo’s depositors
and any new customers who wish to deposit their funds with it. Depositors with the
Funding Bank will be completely insulated from the future performance of the rest of the
current Anglo Irish Bank loan book. The Asset Recovery Bank will also be a licensed
regulated bank. Its dedicated focus will be on the work-out over a period of time of the
assets not being transferred to NAMA in a manner which maximises the return to the
taxpayer.
Costs
The Government believes that it is essential to identify, with as much certainty as
possible, the final cost for the restructuring and resolution of the bank. This will underpin
international financial confidence in Ireland. Accordingly, the Central Bank will
determine the appropriate levels of capital needed in both institutions. Its decision will
be announced by October.
EU Commission
The Department of Finance has conducted intensive discussions with the EU
Commission in recent weeks about the future of Anglo Irish Bank. The Minister for
Finance met Commissioner Almunia last Monday to discuss the issue. A formal detailed
plan is being prepared for submission to the Commission for approval.
The Minister said: “Today’s decision by the Government will provide certainty about the
future of Anglo Irish Bank. Resolution of this, our most distressed institution, is essential
to the promotion of confidence and stability in our financial system.”
8th September 2010
ENDS
Brian Meenan
Press Office
PH: 6045875
email: brian.meenan@finance.gov.ie ‘
Here Are 13 Signs That We’re Actually In A Depression Right Now Gregory White
| David Rosenberg has outlined, in his latest letter, the 13 reasons with this
so-called recovery is actually a depression… David Rosenberg has outlined,
in his latest letter, the 13 reasons with this so-called recovery is actually a
This is what a depression is all about — an economy that 33 months after

a recession begins, with zero policy rates, a stuffed central bank sheet,
and a 10% deficit-to-GDP ratio, is still in need of government help for its
sustenance.
So Broke We Can’t Pay Attention Howard Beale | You spent the whole day
yesterday worrying about today, and now that it’s here, was it worth it?
The Financial Industry Is A ‘Gigantic Parasite’ We Don’t Need Anymore Vincent

Fernando | Strong words from ex-Morgan Stanley Andy Xie.
Deflation Never Had A Chance What the deflationists fail to acknowledge is that in
a purely fiat monetary system deflation is a choice not an inevitability. To
put it in simple terms, if a government is willing to sacrifice its currency
there is absolutely no way deflation can take hold in a modern monetary
system.
There Are Now Enough Vacant Properties In China To House Over Half Of
America On the assumption that each flat serves as a home to a typical
Chinese family of three (parents and one child), the vacant properties could
accommodate 200 million people, which account for more than 15% of the
country’s 1.3 billion population.
Drudgereport: BLIAR BUSTED: Former UK PM's autobiography includes dialogue from meeting
with 'Queen' -- taken from fiction movie! Developing...
REV: THE BURNING WILL PROCEED...
'Meant to Be a Warning'...
Vatican: 'Outrageous'...
NYPD: 'Dangerous'...
Holder: 'Idiotic'...
Clinton: 'Disgraceful'...
Palin: 'Unnecessary provocation'...
FBI: Retaliation 'Likely'...
Petraeus Speaks Out on Quran Burning...
Endangers Troops...
Pastor Says Church Not Deterred...
Hartford City Council meetings to begin with Muslim prayers...
2 SOLDIERS KILLED IN IRAQ, 9 WOUNDED
ADDICTED TO STIMULUS: $50,000,000,000 MORE
Dems wary of WH's huge new spending plan...
Obama takes aim at Boehner... 'They talk about me like a dog'… [ If the shoe fits
... President Obama calls African-Americans a ‘mongrel people’ President
Obama waded into the national race debate in an unlikely setting and with an
unusual choice of words: telling daytime talk show hosts that African-Americans
are “sort of a mongrel people.” ]
'They talk about me like a dog'...
FLASHBACK: President-Elect Obama: Mutt 'Like Me'...
'Even liberal elites concede that Obama's presidency is crumbling'...
BARONE: Sinking with Obama, Democrats plan political triage...
Muslims Protest Plans to Burn Quran...
'Death to America'...
Fears rise as EU nations aim to raise borrowing...
Roubini: More than 400 US Banks Will Fail...
'COMBAT OVER': US TROOPS BATTLE IN BAGHDAD...
Why the Furious Bear Will Come Back - Simon Maierhofer, On Tuesday September
7, 2010, 4:34 pm ‘The Top Ten List has become a staple of David Letterman's Late
Show. We don't quite have the space to discuss ten reasons why the bear market isn't
over (if we did, we'd probably put you to sleep), but we'll take a crack at a Top Five List.
Without further ado, here it is:
#1: Forget About Earnings
Using past earnings numbers to project future performance is like basing your Roulette
bet on the numbers that won previously… [chart]
#2: Budget Deficits
The 2011 U.S. deficit projection for 2011 was raised from $1.2 trillion to $1.4 trillion...
#3: Banks - Nothing but Fluff
…Fundamentally, however, nothing had changed… 'The house of cards was much
bigger and started to stretch beyond Wall Street…The government postponed the
collapse of the 'whole deck' thus far. As of recent, however, some disturbing information
has surfaced. Bank of America admitted to hiding bad assets and Goldman's 82% profit
drop shows that the days of fat trading profits - such as seen in Q3 and Q4 2009 and
Q1 2010 - are over… It doesn't take an economist to know that taking money from your
savings account and transferring it to your checking account can't be counted as
income.
#4 Real Estate
In late July, the market allegedly rallied because new home sales jumped 24% to
330,000 units in June. We feel the urge to put this number into perspective. May sales
were revised from an original 300,000 units to 267,000 units - this is an all-time low.
Bouncing off from the lowest level on record, new home sales did indeed increase 24%.
Is that reason to celebrate though? Chances are the 330,000 will be revised lower in the
future. Regardless, 330,000 homes sold pales in comparison to the 1.4 million homes
sold in 2005.The U.S. Census Bureau reported that the number of vacant properties,
including foreclosures, residences for sale and vacation homes, reached 18.9 million. It
shouldn't be too long before those bleak fundamentals are reflected in the performance
of real estate ETFs like the iShares DJ US Real Estate ETF (NYSEArca: IYR - News)
and SPDR DJ REIT ETF (NYSEArca: RWR - News). ..
#5: Consumer Confidence
During periods of economic expanse the Conference Board's Consumer Confidence

Index has averaged a reading above 100. Recessions average a reading of 71. The
current confidence reading is at a dismal 50.4. The chart below paints this sad picture.
[chart] Consumer spending is said to make up about three quarters of the economy.
How can the economy recover without participation by the consumer? It can't. That
doesn't mean stocks can't rally temporarily. Such a disconnect between the economy
and Wall Street's dream world tends to be short-lived.
Sentiment Confusion
… More importantly though, the optimism surrounding the April highs is indicative of a
major market top, a top that implies a decline much deeper than the 20% we've seen
thus far. This conclusion is certainly supported by the above-mentioned Top Five list
and many other indicators…
‘We are still determined’: U.S. pastor vows to carry out Burn-a-Koran day on Sept
11 despite death threats As Gerald Celente said on the show today, General
Petraeus’ comment that burning the Koran could upset Muslims is the
height of hypocrisy. Did Petraeus ever consider the notion that bombing and
occupying their countries also wouldn’t go down too well? This whole issue
is about manipulating us into a helter-skelter race war as a distraction from
the economic collapse and to rally the country around another war in the
middle east.
NYPD Top Cop: Planned Quran Burning Is “Dangerous” [ I personally wasn’t

going to comment on this and let others draw their own conclusions;
especially, as pointed out by Celente, when america’s been bombing and
killing civilian muslims in droves, based on lies, and even for drug trade pre-
eminence, etc.. After all, it’s not too difficult to dredge up memories of other
historical book-burners, ie., that Austrian house-painter with a brush
mustache, etc.. But really, isn’t this guy jones a neo-con dream come true? I
think he’s just a publicity seeking, mentally unbalanced dummy. He even
looks a bit like john bolton. But, in america, mental unbalance has become
the new normal. ] Police Commissioner Ray Kelly sided with Gen. Petraeus
last night, calling a planned burning of Qurans on the anniversary of Sept.
11, “unwise” and “un-American” during the 9/11 Museum and Memorial’s
fundraising dinner at Cipriani Wall Street in Manhattan Tuesday night.
TSA Plans to Use Homeboy in Ball Cap “Avatar” on Naked Body Scanners Kurt
Nimmo | Scheme ignores the obvious health risk of radiation technology.
9/11 Truth is Still the Issue James Corbett | Where does the 9/11 Truth Movement
stand and where it is heading?
50 Mind Blowing Facts About America That Our Founding Fathers Never Would
Have Believed The Economic Collapse | The United States is a much
different place today than it was in 1776, and unfortunately many of the
changes have been for the worse.
Al-Qaida and Taliban threat is exaggerated, says security thinktank Guardian |

Strategy institute challenges idea that troops are needed in Afghanistan to
stop export of terrorism to west.
Rioters Attack LA Police Station After Death of Immigrant New York Daily News |
Hundreds of demonstrators took to the streets for the second night in a row
in downtown Los Angeles Tuesday night to protest the police shooting of a
Petraeus: Neocons favorite general Russia Today | Ten Afghan civilians were
killed Thursday in a NATO air strike on three vehicles carrying civilians,
President Hamid Karzai said in a statement.
Obama infrastructure proposal may hit election year wall (Washington Post) [ It
has nothing to do with the election at this point, although the motivations for
same are suspect. It’s really a matter of political capital; and wobama has
NONE! Zero! Zed! Nada! He’s totally and unequivocally, DONE! ] What seems
virtually certain is that the proposal for initial spending of $50 billion on
planes, trains and automobiles most likely will wait until next year.
Obama to unveil more stimulus, tax breaks for business (Washington Post) [ It
really is quite astounding how quickly the tides have changed against
wobama. The amazing thing is that as president he had the easiest act in the
world to follow; viz., dumbya bush. He blew that royally. How? Why? Make
no mistake, wobama is as over as over can be. Even his dem compatriots
are saying of this desperate act … too little, too late. And yet, this truth is
seen from their limited perspective only with regard to the election, when in
fact, this is as true economically as it is long-term for the nation. All he had
to do was what he said he would do; and, that especially applies to the self-
destruct, ill-advised ramped up war spending in Afghanistan. Wobama is
undoubtedly the biggest b*** s*** artist in the history of this nation and really
bought his own failure by not remembering what got him elected in the first
instance in terms of popular vote (the ultimate source of electoral victory a
point for reflection in light of ever more evident quid pro quos, ie., no wall
street prosecutions, ramped up war spending, etc..]
To consumer advocates, antitrust enforcement lacking (Washington Post)

[ Unfortunately, at least for those who still care, america’s long past the glory
days of the trust-busters. In fact, america’s long past the days of any meaningful
law at all. See infra, RICO Summary to FBI Under Penalty of Perjury, which
includes how sam alito as u.s. attorney parleyed cover-up and obstruction of
justice et als into fed.ct.appeals and u.s.supreme court lifetime appointments.
The corruption’s incredible but very real. ] The Justice Department's antitrust
division has yet to exercise its signature power: to bring a case against a
corporate titan suspected of abusing its dominance.
Pearlstein: The bleak truth about unemployment (Washington Post) [ When I saw
this headline I felt certain that Mr. Pearlstein would be discussing the reality that
the real unemployment rate exceeds 20% with that ‘stopped looking’ fudge factor
removed as merely a convenient subterfuge. But, alas and lamentably, I was
wrong. To be sure, Mr. Pearstein’s topic is important and probably more
optimistic than anyone deserves to be in light of some grim realities that most
dare not mention with the defacto bankrupt nation just barely surviving on that
wonder drug called hopium (see infra, DeCiantis: ‘Students of behavioral finance
must have had a field day this past week. In the wake of a month of dismal
economic reports, Wall Street got its risk on with a few better than expected
reports on manufacturing sentiment, home sales, and employment. Hopium, it
appears, is a powerful drug. [ HOPIUM … YEAH! I KIND OF LIKE THAT
METAPHOR WHICH RINGS TRUE! ] ). As for Mr. Pearlstein’s ‘how to make the
american economy competitive again.’, I liken this Gordian knot of a problem to
one for which magic mushrooms, along with hopium, are as far as reality will
permit in terms of even imagining such could possibly be the case. You cannot
unring the bell on the irrevocable structural changes wrought by the greediest,
most corrupt, and, though often wrapped in the flag, treasonous, lawless
elements of american society; governmental, quasi-governmental, and private
business (which included the necessary technology transfers). That’s reality! ]
September: In Like a Lion, Out Like a Lamb DeCiantis: ‘Students of behavioral
finance must have had a field day this past week. In the wake of a month of
dismal economic reports, Wall Street got its risk on with a few better than
expected reports on manufacturing sentiment, home sales, and employment.
Hopium, it appears, is a powerful drug. [ HOPIUM … YEAH! I KIND OF LIKE THAT
METAPHOR WHICH RINGS TRUE! ]
Economists spent August cautiously lowering their outlook for the second half of
the year as Obama's "recovery summer" failed to bear fruit, the Federal Reserve
failed at both of its twin mandates (stable prices and full employment), and
bullish analysts failed to convince investors that the market was ready to climb to
fresh highs. As a result, stocks ended the worst August in nine years with rising
calls for stimulus and fears of the dreaded double-dip.
Then came September. In like a lion, surging nearly 3% on the first trading day of
the month on the heels of a better-than-expected survey by the Institute for
Supply Management of the manufacturing industry. Representing (statistically
speaking) nearly 30% of the US economy, the number was expected to fall after a
series of similar Fed surveys from around the country indicated that American
heavy industry -- that engine of growth over the last two quarters -- was finally
loosing steam. Instead, it leapfrogged every estimate on The Street to post its
first advance since May. Granted the rise was modest, but the surprise factor
flipped the all-important risk switch and a reinvigorated camp of bulls poured
back into the market, convinced that their creeping suspicions about a slip back
into recession were all just a bad dream.
[chart]
Outside of a few trading irregularities, the data itself forced the bears to take
pause and reflect on the substance of the report. The economics team at
Goldman Sachs may have summarized it best:
"Without question, the report was better than expected...

[but] the details of the report actually reinforce the case
for further slowing in this sector. As shown in Exhibit 2,
the gap between the indexes for new orders and
inventories, an important lead indicator of movements in
the composite index and in industrial production, almost
disappeared in the August report. As recently as May,
this gap was a robust 20.1 index points. The clear—if
uneven—downward trend in this indicator actually
strengthens the case for a decline in the composite
index in coming months. The bottom line: US
manufacturing output may still be expanding, but the
risk that these goods are winding up on the shelf has
increased."
More telling, however, was the dissection by semi-permabear David Rosenberg

that helps to put the August print into context:
In a nutshell, ISM did smash consensus expectations in

August but the composition left much to be desired. The
coincident indicators firmed but the categories that
actually lead manufacturing activity softened across the
board.
As we said at the outset, the ISM index was at complete

odds with the regional surveys. Philadelphia, New York,
Milwaukee, Richmond and Kansas City were all down.
Dallas and Cincinnati were up. In the past, when we had
a 5-to-2 ratio to the downside, the share of the time ISM
managed to eke out an advance was 4%.
It would be wise to lean against the market's initial

dramatic reaction to this data. The ISM
orders/inventories ratio is a decent leading indicator and
it sank to 1.033x from 1.065 in July. 1.278x in Julne and
1.441x in May. The hidden nugget in today's report is
that this ratio has decline to levels not seen since
February 2009. And the last time it fell this fast to this
type of level was in the September to December 2007
period (1.03x from 1.30x) when once again, there was
tremendous confusion and intense debate over whether
it was a recession/soft patch in the economy and the
bear market/corrective phase in equities.
Suffice it to say that in the past 30 years, with eleven

observations, ISM dropped to 47x in the three months
after such a decline in the orders/inventory ratio to such
a low level as is the case today. That is the average, the
median, and the mode. The highest ISM reading three
months hence was 51.9, so if past is prescient, today's
data was likely a huge headfake.
[chart] The ISM report also overshadowed another important data release on
construction, but we'll get to that later. The next feather in the bulls' cap was a
pair of data points on residential real estate -- the sick dog of nearly every major
developed economy in the G8. The first revealed a rise in July pending home
sales (5.6%) after a precipitous drop in May (30%) and a further drop in June
(2.6%) as an $8,000 tax credit expired. Analysts collectively expected a drop of
1%. Needless to say the markets were pleasantly surprised.
A closer look at the data reveals two key narratives not captured by the popular
media or trading desks. First, it's important to contextualize the "rise" in pending
sales by looking at a longer time series that tells the same story (this particularl
series only goes back to 2005). The graph below speaks for itself.
[chart]
Second, the reported data may suffer from a disease common to many of the
economic statistics released every day: Seasonal Adjustment Disorder (SAD).
Given the inherent seasonality of the home buying cycle (higher during the
summer when kids aren't in school, lower in winter when the weather is less than
ideal for moving) economists at the National Association of Realtors make
adjustments for these factors to make monthly comparisons easier. However,
that can sometimes mask changes in the raw data, as was the case with the
August NAR release. As Rosenberg suggests:
While the increase in pending home sales is

encouraging, we did dig through the data and found that
the not seasonally adjusted numbers (the raw numbers)
fell by 7%, with declines across the country. This makes
sense as July is usually a slower month for homebuying
activities.
We wonder if there is a chance that the seasonal

adjustment factors could be overstating the monthly
increase given that we have seen such huge volatility in
the housing numbers in the recent year making the
seasonal adjustment process more difficult. Recall that
Standard and Poor’s issued a note about the Case-
Shiller home price index saying that “the turmoil in the
housing market in the last few years has generated
unusual movements that are easily mistaken for shifts in
the normal seasonal patterns, resulting in larger
seasonal adjustments and misleading results.
Another data point that drew a lot of bullish attention was Tuesday's housing
release on prices. After a few dismal years, any news that isn't a decrease is more
than welcome by just about everyone, rich and poor, domestic and international.
Tuesday's Case-Shiller print was no exception, as home prices "jumped"...by a
mind-numbing 1%...two months ago in June... on a rolling three-month basis (i.e.
April through June).....still reflecting the last dying gasp of the home buyers' tax
credit. Again, a little context:
[chart]
And how the markets rallied.
Friday's bulls, reinvigorated after a powerful (and low volume) start to the month,
launched their attack on a new front: employment. Long a forgotten weapon in
the bulls' arsenal, private payrolls climbed by a larger-than-expected 67,000 in
August, beating expectations for a 45,000 gain. At that rate, it would only take a
little under 9 years to rehire the 7,000,000 people who lost their jobs during the
recession but have yet to find new work (assuming no increase in population).
Only 7,000 permanent government jobs were shed during the month, though
economists expect that number to rise as state and local governments face
crippling budget deficits. The other 114,000 new claims represent the last major
layoff of temporary census workers, who rejoin an army of job seekers that have
collectively become one of America's most structural economic challenges.
[chart]
Obviously plenty of reason for the markets to celebrate.
Now for the bad news.
On the same day as the ISM Manufacturing survey was released to considerable
fanfare, July's construction spending was released by the Census Bureau and
confirmed a worsening year-over-year decline of nearly 11%. Month over month,
spending was down 1% in July and suggests another downward revision to third
quarter GDP.
More from Goldman:
Construction outlays dropped 1% in July from a level that was revised down a
whopping 2.7%. This dismal construction report flew below the market's radar, as
it normally does since it usually comes out alongside the ISM manufacturing
survey. One might dub construction outlays the Rodney Dangerfield ("I don't get
no respect") of US economic indicators. Of all the data released this week, it has
the most direct bearing on the real GDP "bean count" next to the monthly
consumption report. Hence, since consumption was only modestly better than
expected, a case can be made that third-quarter growth might actually be lower
now than we thought a week ago despite all the upside surprises.
[chart]
Wednesday also revealed that another source of bullish sentiment in July may
have been a little premature: auto sales. After months of steep retail incentives
and easy year-over-year growth comparisons, cash- and credit-strapped
Americans returned to a more cautious consumption path. As the second largest
leveraged purchase in a typical household, auto sales reflected that shift. Only
Chrysler, the runt of the litter, managed to squeak out an increase in sales in an
otherwise sluggish retail environment.
[chart]
Finally, on Friday the latest ISM Non-Manufacturing survey was released and was
every bit as disappointing as everyone expected the manufacturing survey to be.
The index slowed to 51.5% in August from 54.3% in July and 55.4% in May, and its
components were even less rosy. From Econoday:
A new optimism after today's jobs report -- not so fast.

The ISM non-manufacturing report shows broad and
deeper-than-expected slowing. New orders at 52.4 are
down more than four points in August for the slowest
rate of month-to-month growth so far this year.
Employment, which in this report includes government
workers, is signaling contraction, at 48.2 for a nearly
three point decline for the worst reading since January.
The composite headline index at 51.5 is down exactly
three points for what is also the worst reading since
January. Backlog orders are basically flat, export orders
are down, deliveries are showing less delays, and
general business activity is slower. Imports did rise as
did raw material prices.
[chart]
In response, the market cut its morning gains in half, only to rally into the close to
retest the morning highs. What makes this week's schizophrenic ISM
interpretations so dangerous is that the upside surprise on Wednesday was
based on data that captures roughly a third of the economy, while Friday's non-
manufacturing disappointment approximates activity in roughly two-thirds of the
economy. So of course the markets ended the week up 3%.
Once again, Goldman's analysts try to walk a fine line between sell-side optimism
and buy-side skepticism:
On the whole, it's been a good week for US economic

data...reports on factory activity, pending home sales,
and the labor market have surprised to the high side. In
fact, some of these readings have benefited from
positive judgmental adjustments, as factors not readily
apparent in the headline indicator have also been better
than expected. However, this does not mean that the
outlook for US economic activity has improved, except
insofar as the better-than-expected news eases market
worries about a "double dip". At least some - perhaps
most - of the improvement ... reflects what Paul
Krugman once called, in a much different context, "The
Age of Diminished Expectations". In the current setting,
we note that several prominent forecasters have marked
down forecasts of economic activity and therefore may
also have lowered their sights on the higher frequency
indicators.
Interpretive bias is inevitable when any new data is released. Optimists will
quickly find a silver lining in any dark cloud, and pessimists will pick apart even
the most robust reports of growth and tease out a bearish narrative. Investors
should think twice when these competing forces fall out of balance -- when
markets are as unabashedly bearish as they were in late 2008, or as
unapologetically bullish as the were during the second half of 2009.
If the first few days of September are any indication of how the month will unfold,
we may be back on the perma-bull track. When disappointing data is released,
investors cheer for more fiscal and monetary stimulus. When data is surprisingly
positive, investors cheer at the prospect of a sustainable, organic recovery. As
we saw in early 2010, this "heads I win, tails you lose" mentality is particularly
vulnerable to rapid and substantial correction, and a September that entered as a
lion may finish the third quarter as a lamb.
Disclosure: Long safety, short risk (no specific stocks mentioned)’
Correlation and the S&P 500 [ I really think this author was a bit too diffident in
talking about the computerized churn-and-earn scam which eats away at the real
economy , but the discussion highlights at least this immense problem area ]
‘The immense correlation between the market, and almost all risk assets on Earth
is not a new subject to FMMF readers. [Jun 30, 2009: Bloomberg - Correlation
Among Asset Classes Highest Ever] I beat this dead horse monthly, mostly out of
abject frustration. [Sep 2, 2010: Why Bother with Individual Stocks in the Perfectly
Correlated Market?] I don't have an issue when the market is up 2-3% or 90% of
stocks move in the same direction, it is all these days the market is up or down
0.7% when it drives a person nuts.
Friday, for example, every position I had but one was up. As I type this every
position but one is down.
This correlation madness started to become an issue in 2007 as we were told that
hedgies control 40%(ish) of each day's trading volume. As I said then, since
mutual and pension funds are relatively staid players, the 'fast money' is the
marginal buyer, and 'hot money' in the form of hedge funds - especially of the
quant variety - are the marginal buyer. The problem now is they seem to be the
only buyer as equity fund withdrawals continue on pace as the retail guy floods
into bond funds.
So we have a market dominated by computers trading to computers, all using

related algo's - happy, happy, joy joy. Now we hear things such as 60-70% of
trades flow through these players... and since EFTs are the weapon of choice,
computerized trading of EFTs have taken over the market. [Jun 29, 2010:
Correlations Among Asset Classes Reach Ever Higher Extremes as HAL9000
Algos Dominate Life] The SPY ETF is now about 9% of ALL volume as of last
check, and we had a time about 7-8 months ago where Citigroup (C), AIG (AIG),
Fannie (FNMA.OB), and Freddie (FMCC.OB) were 40% of all volume. Pathetic.
Frankly, it makes the market a frustrating and 'less fun' place. The market used to
be a four-dimensional jigsaw puzzle, comprised of fundamental, technical,
psychological, and 'animal spirits.' Now it's just the dumbed down two-
dimensional Etch a Sketch. Shake it at 4 pm every day, because it has no memory
from day to day. Sure you can adjust (in fact you must adjust) if you plan to stick
around, but when everything is a 1:1 correlation, it simply reduces the market to
'stoopid' and coming in each day, checking your brain at the door, and staring at
the S&P 500 chart trying to guess where it will be in 3 hours, 3 days, and 3 weeks
gets to be boring. [Jul 15, 2010: WSJ - Correlation Soars on S&P 500 Shares]
But this is the casino market we have built, and I don't see anything changing
anytime soon. The other issue is it makes it so much more difficult to outperform
the market. Surely there are a handful of stock names that still outperform (or
underperform) but with almost everything swaying in the exact same direction as
the market, creating alpha is difficult. Most of the performance nowadays is not
about stocks, but due to calling turns in the greater market - increasingly hard to
position for as you scale in size. Especially when the majority of the turns are due
to binary reactions to economic reports or Fed announcements - it's simply
placing your bets on red and black, not a stock market.
I've written about said frustration in the past amongst the "human" hedgies, [July
8, 2010: Hedge Funds "Frozen in Headlights" as BiPolar Market with 1:1
Correlation in All Things Not Named U.S. Treasuries Causes Confusion] and this
is taking a toll on the mutual fund managers as well.
One of my big beefs with the mutual fund industry is that many players -
especially in the bigger funds - are closed index funds. They all have super cool
names but almost anything in 'large cap value' or 'large cap growth' were hybrid
closet indexers. They basically flip an Exxon (XOM), Intel (INTC), or a Microsoft
(MSFT), with a Walmart (WMT), Verizon (VZ), or a Cisco Systems (CSCO) --
change the order, weighting, and indeed are able to charge a nice fee for doing
nothing other than being the S&P 500 with a small twist. I cannot tell you how
many 401k plans I reviewed for people, where I went to look at the top 10 holdings
of the 12-15 mutual fund choices and 90% of them were identical (just in different
order in weightings!). The statistic of 0.99 correlation amongst the S&P 500 and
many of the largest funds is quite remarkable and points to my 'closet index' beef,
but with the mechanics of our new paradigm market, it has taken it to a whole
new level. It also says a lot of people are wasting their money paying
management fees for what is an S&P 500 ETF clone.
That said, even with the closet index situation that has been growing for a
decade+ you used to be able to try to outperform if you plied your trade in small
or medium caps (or international markets), but the HFT + EFT = GLEE
environment we now live in has made that increasingly moot, since most of those
stocks now move in unison as well. If your stock is not in a major EFT it generally
sits ignored with low volume... if it IS in an ETF than it doesnt matter the company
specifics - as long as the algo's are buying (or selling that ETF) as flavor of the
day, every component in that ETF is a winner (or loser)! Stoopid is as stoopid
does in the market with 1st grade logic.
One gentleman I've admired for many years is Will Danoff at Fidelity Contrafund.
[Sep 9, 2008: Will Danoff in Kiplinger Magazine] His fund has been huge in size
for years on end (I'm talking multiples the size of the biggest hedge funds -
Contrafund is now up to $62 BILLION), yet he has been able to somehow
outperform his peer group (and until the past 5 years the S&P 500) by a wide
margin, mostly by being somewhat contrarian. This despite holding many
positions and not being extremely concentrated - a feat I find quite remarkable
since once you start owning 200-250 positions I don't know how you can beat the
market over time. (Contrafund owns 445 positions as of last quarter!) Danoff is
highlighted in this piece, which is why I mention him - he is no dummy.
Via Bloomberg:
• Fidelity Investments’ William Danoff, the stock picker who led the
Contrafund to benchmark- beating returns, isn’t looking very contrarian
these days. Danoff’s $62 billion Contrafund, which seeks to beat the market
by picking stocks whose value hasn’t been fully recognized, has tracked
the Standard & Poor’s 500 Index more closely this year than in any year
during its four-decade history.
• “Danoff usually finds ways to go against the grain, but these days there
isn’t much that’s contrarian relative to the macro theme,” Adviser
Investments’ Lowell said. “This is a trendless market and it’s not providing
him any room to break away from the S&P 500.”
• Investing abroad hasn’t helped stock pickers like Danoff because
correlation has shot up even between regions.
• Danoff isn’t alone. Six of the 10 largest U.S. stock funds show correlations
of 0.99 this year, meaning they moved almost completely in sync with the
market. Managers are struggling to stand out and attract new money as
fear of another crisis prompts investors to move in and out of markets
without discriminating between securities, industries or geographies.
• Robert Doll, BlackRock Inc.’s chief equity strategist, said while stocks
moved in lockstep before, this is the longest he has seen correlation
persist across markets. “We were expecting 2010 to be the year when stock
selection would add value, but that hasn’t been the case.”
• Doll says even the most high-quality stocks have been hurt among a larger
sell-off in risky assets. “We’ve scratched our heads many times during this
year as the macro picture is driving everything,” Doll said. “It can be
frustrating along the way, but we’re just focusing on the fundamentals and
eventually we’ll get paid for it.”
• The correlation between the U.S. equity benchmark and its individual
members was 0.81 in the 50 trading days through July 7 and has since
remained close to that level. That’s almost twice the historical average of
0.45 over the past 30 years.
• The increase in correlation is making it difficult for actively managed funds
to beat their benchmarks and produce better returns than lower-cost index
products. “You can’t pick any mutual fund, even if has previously been a
winner, and expect it to outperform in this market.”
• Mohamed El-Erian, the chief executive officer of Newport Beach, California-
based Pacific Investment Management Co., says investors have a “risk-
on/risk-off” attitude that leads to sometimes “violent” swings, such as the
sell-off in markets worldwide on Aug. 11, after the Federal Reserve
indicated that the economic recovery had lost momentum. “We were
particularly struck by the size and correlated nature of the market moves,”
said El-Erian.
• Correlation may be linked to the increased use of exchange-traded funds
and index funds in the stock market, especially those that focus on
particular industry groups, said Brian James, co-director of equity research
at Boston-based Loomis Sayles & Co. Assets in U.S. ETFs have grown to
more than $821 billion from $608 billion at the end of 2007, according to
Investment Company Institute. “It is almost axiomatic that if you have an
increased presence of single-purpose ETFS and futures traders, it moves
stocks in one direction,” said James.
• Correlation has been particularly pronounced for companies with larger
market capitalizations, and for the larger funds. James said that 90 to 95
percent of large-capitalization stocks have tended to move in the same
direction this year, up from about 70 percent prior to the 2008 financial
crisis.
• The largest U.S. stock fund, the $148 billion Growth Fund of America, has
seen correlation increase to 0.99 this year, from 0.84 in mid-2008. For the
$37 billion Dodge & Cox Stock Fund, run by San Francisco-based Dodge &
Cox, the correlation measure was also 0.99 this year, compared with low of
0.81 prior to the height of the crisis in late 2008.
Disclosure: None’
Obama seeks $100 billion business tax credit (Washington Post) [ All just
monopoly money now! And, of course, pre-election talking points as war
spending ramps up in Afghanistan. Sounds like … uh … uh … plan?
Bankruptcy plan? Drudgereport: MORGAN STANLEY: Government Bond
Defaults Inevitable … ]
Economic events for this week (Washington Post) [ Well, I’ll stick with nobel prize
winner Krugman (infra) among other similar dire but realistic forecasters
who, beyond the spin and fake market-frothing data (especially so close to
the mid-terms) have a track record of being right when everyone else was
ebulliently wrong, mr. fraudulent-wall-street-glass-half-full-though-empty. ]
After a busy week of economic data, this one should be quieter, offering the
Federal Reserve's compilation of anecdotal information on the job market
and new details on trade.
Obama defends policies and offers new proposal (Washington Post) [ No you
can’t wobama … b*** s*** everyone again! ‘Yes, we can … NOT!’ That dog don’t
hunt anymore wobama. Drudgereport: Obama takes aim at Boehner... 'They talk
about me like a dog'… [ If the shoe fits, wobama … keep gearing up Afghanistan
… sounds like a plan]... ]Faced with twin challenges of boosting the economy and
saving congressional seats, the president tries to do a little of both on Labor Day.


Krugman’s macro outlook. The private sector has been running on fumes since
the debt bubble burst in 2007. The government’s extraordinary actions helped
bolster the economy, but merely papered over what was a very weak private
sector. As we see the government step aside it’s difficult to imagine that the
weakness at the private sector won’t again be exposed for what it really is.
Government Bonds: Can the U.S. Maintain Confidence in Its Debt? Cliff Kule
Massive, unsustainable government debt - it's everywhere. Especially in America.
At some point, will the world begin to lose confidence in America's growing debt?
Will interest rates then skyrocket? Will a Greek-style crisis in U.S. government
bonds then ensue? Is there any way out?
America can claim its debt problems are not as bad as some countries. But that
ignores some important points:
1. See an interesting chart on how America's financial condition is worse than

several other countries.
2. Even the most respected bond manager in the world, Pimco's Bill Gross,
believes there are several countries including the U.S. whose financial
ratios are in dangerous territory - the "ring of fire".
3. A loss of confidence in the U.S. dollar and U.S. debt could bring a "Greek-
style" crisis to the whole world. Consider that the U.S. dollar has been the
world's reserve currency since 1944; it has been accumulated by the whole
world as a form of trusted and secure savings. There are trillions of dollars
of U.S. government debt accumulated as reserve savings by banks around
the world (see chart below courtesy of Hugo Salinas Price) and realize that
most reserves are held as U.S. government bonds. A loss of confidence in
the U.S. dollar and in the ability of the U.S. to service its growing debt
could trigger an epic disaster. [chart]
Is there any way for America to maintain the confidence?

One way would be for America to become fiscally prudent, simply stop creating
money and debt, let the massive deflationary forces of credit contraction and
consumer de-leveraging run their natural course. This would cleanse the system
of toxic debt. It would also clearly and immediately cause another Great
Depression.
Another way would be for America to simply print more money, create more debt,
blindly following Keynesian economics that brought us into this mess in the first
place. Attempt to "inflate away" the debt without losing the confidence of
investors that buy the U.S. government bonds. This has been tried many times
throughout history with disastrous consequences.
The chart below (courtesy of Economic Edge) shows how increases in debt are
recently giving less and less “umph” to economic GDP growth to the point now
of negative GDP growth. Eric Sprott has produced an excellent study suggesting
that 9 cents of "growth" is coming with every dollar we go deeper into debt. Bud
Conrad has produced calculations that are equally discouraging. This massive
debt-driven money printing would therefore likely lead some form of
hyperinflation in a futile attempt to stimulate economic growth.
This leaves one other option.... a direction that is hardly ever considered... a
policy tool still waiting to be tried!... America could return to the gold standard...
Why? Because the gold standard system would back the U.S. dollar by real
money, and enforce a responsible discipline of fiscal and monetary policy that
Congress and the Federal Reserve cannot currently do. In turn this would
maintain confidence in America's debt.
“The gold standard has one tremendous virtue: the quantity of the
money supply, under the gold standard, is independent of the
policies of governments and political parties. This is its advantage. It
is a form of protection against spendthrift governments.” Ludwig
von Mises (1881-1973)
Monetary systems on a gold standard system cannot increase money supply as

needed. Under a gold standard system, paper money is backed by something of
real tangible value. The total amount of gold limits the total amount of paper
money that can be created. New money must be backed by additional gold.
Omnis’ Jim Rickards suggests this possible solution: a “gold backed currency at
a non-deflationary price… sound money leads to sound growth and the creation
of real, not illusory, wealth.”
In 1971, President Nixon simply severed the tie between gold and U.S. dollars. As
he closed the gold “window,” Nixon proclaimed “We are all Keynesians now”
(referring to the Keynesian economic school of thought where gold has no
function). Austrian School economists and Cliff Küle would like to say – We are
not all Keynesians.
Did severing the link between the dollar and gold work to strengthen confidence
in the U.S.? Please consider:
1. Within a generation of that move, the U.S. went from being the world’s
largest creditor nation to the world’s largest debtor.
2. TIME Magazine of 1979 said:
Until the greenback is once again made as good as gold, many

millions of people will persist in believing that the barbarous
relic is still a better bet.
Recently speaking about Goldman Sachs’ problems at the Peter G. Peterson

Foundation, former President Bill Clinton said,
There is a bigger problem here… too much of our growth was in

finance ever since went off the gold standard.
The dollar “tie” to gold might be “re-tied” just as simply as it was untied. In a
certain respect, America never really went off the gold standard. The tie between
gold and U.S. dollar was simply adjusted to 0%. So, simply adjust it back. What
tie would be needed today to restore America back to the gold standard? Let’s do
the simple math.
Official figures for the total amount of gold reserves held by the U.S. Treasury are
8133.5 tonnes of gold. This gold is owned by all Americans and is held in trust by
the government for the people. Given that 1 metric tonne is 32150.746 ounces,
that amounts to:
8133.5 tonnes x 32150.746 ounces/tonne = 261498092.591 ounces
If we look at recent Federal Reserve data, we note that the total U.S. M1
seasonally adjusted money supply is at $1712.2 Billion of currency. Therefore if
we were to take the total currency and back it by the total amount of gold, this
would give:
$1712.2 billion divided by 261498092.591 = US$6547 per ounce
There you have it – if the U.S. were to devalue the U.S. dollar, setting gold at 6550
U.S. dollars per ounce of gold, the country could position to go back on the gold
standard. Global confidence in the U.S. dollar and in America's debt would be
maintained. It may be as simple as finding the right price for the government gold
holdings to give "backing" to every dollar in circulation.
$6550/ounce is approximately the current value necessary to give "gold backing"
to the current level of M1 money supply. If the U.S. wanted to expand the money
supply further to stimulate the economy, it would need to set a new price for its
gold holdings which is even higher than $6550/ounce or somehow get more gold.
The U.S. could then be in a position to expand money supply as necessary to
stimulate growth and able to extend credit to other nations. This is an essential
ingredient to restoring confidence and keeping the title of reserve currency. After
all, a reserve currency should be able to extend credit to nations in need, not be
in need of credit from other nations.
As Jim Rickards states, this one-to-one ratio backing of gold with the U.S. dollar
would comfortably support a broader U.S. money supply on a one-to-

one ratio and maintain confidence in the dollar and U.S. sovereign
debt.
Perhaps only then could global confidence in the U.S. dollar and in U.S. debt be
maintained – if not, either a deflationary depression or a hyperinflationary
depression could be in store as confidence wanes with increasing levels of public
debt.
Back to the Future
Nick Barisheff, President and CEO of Bullion Management Group, emphasizes
that gold is money:
Gold is not and never has been a currency. Gold is something

entirely different and far more valuable. It is money.
Cliff Küle suggests that to maintain confidence in its debt, America must bring
back the gold standard, anchoring the U.S. dollar back to real money - gold, as
Article 1 of the Constitution of the United States commits it to be.
Work Until You’re Dead? That May Be the Only Option for Many Americans
Huffington Post | Given that the first wave of Boomers is scheduled to turn 65
in 2011, Attention Must be Paid.
Gold Could Double over Five Years – Headed Higher with Government
Resentment: Holmes Gold has the potential to double within the next five
years, and if governments stumble with their policies, it can go even higher,
said Frank Holmes, CEO of US Global Investors.
As Americans Celebrate Labor Day 2010, U.S. Factories Are Closing In Droves
Labor Day 2010 comes in the midst of a stunning wave of U.S. factory
closings that stretches from coast to coast. Once upon a time America was
the greatest manufacturing machine that the world has ever seen, but now it
seems as though the only jobs available for working class Americans
involve phrases such as “Welcome to Wal-Mart” and “Would you like fries
with that?”
Burry, Predictor of Mortgage Collapse, Bets on Farmland, Gold Michael Burry, the
former hedge-fund manager who predicted the housing market’s plunge,
said he is investing in farmable land, small technology companies and gold
as he hunts original ideas and braces for a weaker dollar.
Unemployment in U.S. May Rise Toward 10% on `Feeble’ Growth As Bob

Chapman outlined on the show today, once the real figures that the U.S.
Labor Department hides are factored in, real unemployment is over 21 per
cent – approaching great depression levels.
Manipulation Of Money – David Icke David Icke explains how money is created
out of fresh air and how debt is used to enslave us.
Globalism Destroys America: 10 Reasons Why The World Trade Organization Is

Bad For The United States Economy In 2010, education has been so
“dumbed down” in America that most Americans don’t even know what the
WTO is, and even fewer understand why the WTO is important. The truth is
that the World Trade Organization is essentially a global government for
world trade.
economist who has added his voice to scores of others now forecasting
ongoing economic doom on a scale not seen since the 1930s.) , and my
position and that of demographer Dent (This is a global depression. This is a
prosecuted, jailed, fined, and disgorgement imposed.

and 2012).
National / World
FBI Warns of Possible Terrorist Response to “Burn Koran Day” Kurt Nimmo |
Violence expected in response to Koran burning demo in Florida.
Everything you need to know about the events in NYC We Are Change | To be
sure everyone is keyed in on all details, we here in NYC decided to write up
an extremely detailed schedule.
The Reckless Mess Created by The Fed Bob Chapman | The 3-card Monte game
continues.
Exclusive: Internal FBI Memo: Government Bracing For Violence Over “Burn
Koran Day” Infowars.com has received a leaked copy of an internal FBI
memo warning of a possible terrorist response to “International Burn A
Koran Day,” an event scheduled for the ninth anniversary of the September
11 attack to be held by the Dove World Outreach Center in Gainesville,
Florida.
Condoleeza Rice: Everyone Thought Flight 93 Had Been Shot Down When United
93 came down Ms Rice and other officials believed it may have been shot
out of the sky. Miss Rice added: ‘Everyone in that room thinks that perhaps
it’s been shot down.’
The White House Attempts To Refute The Scariest Jobs Chart Ever You’ve
certainly seen the chart that we’ve dubbed The Scariest Jobs Chart ever,
which shows how meager the jobs recovery has been since the start of the
recession, compared to other recessions.
Obama Did Create 3 Million Jobs — in China President Obama should be saying,
“My economic stimulus plan has preserved or created 3 million jobs — in
China.” He keeps leaving out the words “in China.” His plan is stimulating
American demand for imports, not demand for American products.
Obama: Sounding Bush-like? David Swanson said President Obama sounded like
he embraced all the lies about this war, including the falsehood about the
surge which created “mythical success”.
Abortionists Kept Aborted Babies in Jars I used to think that the abortion
industry were simply capitalists who allowed their greed to override their
humanity. I used to think that maybe it was just feminism run amok and that
cooler heads would eventually prevail. I used to think that pro-lifers were
simply up against the extreme of secularized logic. Over the past few years
though I’ve come to believe that it’s more than that. It’s worse than that.
We’re immersed in a culture with a death fetish. Our fascination with death is
boundless.
The Establishment Media Smear Machine Is Officially Dead Ashes to ashes, dust
to dust. The establishment media smear machine is officially dead and
buried. Rand Paul has extended his lead over Democratic opponent Jack
Conway to a massive 15 points, proving that when the distrusted and
discredited corporate media attacks anyone now, it actually increases their
popularity.
Drudgereport:Petraeus Speaks Out on Quran Burning...

Endangers Troops...
Pastor Says Church Not Deterred...
Hartford City Council meetings to begin with Muslim prayers...
2 SOLDIERS KILLED IN IRAQ, 9 WOUNDED
ADDICTED TO STIMULUS: $50,000,000,000 MORE
Dems wary of WH's huge new spending plan...
Obama takes aim at Boehner... 'They talk about me like a dog'… [ If the shoe fits
... President Obama calls African-Americans a ‘mongrel people’ President
Obama waded into the national race debate in an unlikely setting and with an
unusual choice of words: telling daytime talk show hosts that African-Americans
are “sort of a mongrel people.” ]
'They talk about me like a dog'...
FLASHBACK: President-Elect Obama: Mutt 'Like Me'...
Muslims Protest Plans to Burn Quran...
'Death to America'...
Fears rise as EU nations aim to raise borrowing...
Roubini: More than 400 US Banks Will Fail...
'COMBAT OVER': US TROOPS BATTLE IN BAGHDAD...
Obama to call for $100B business tax credit (Washington Post) [ Just in the nick
of time … riiiiight! … for the elections … you know, ‘talking points’ though of no
economic effect … and to make america, only slightly more bankrupt ... at this
point, who’s counting? ] Under mounting pressure to intensify his focus on the
economy ahead of the midterm elections, president seeks to boost research and
development
Afghan bankers' assets frozen (Washington Post) Authorities bar sale of

properties held by principal owners, but freeze excludes Karzai's brother [ Yeah
… don’t want to get him too angry … he’s too valuable to the heroin trade
resurrected by america. ].
Small businesses feel squeezed by Obama policies (Washington Post) [ Well, the
grim reality for them is that they just don’t pony-up those big campaign dollars
like those non-performing corporate welfare recipient conglomerates / big
businesses. The other reality, reiterated again here is that everybody’s on to the
fact that wobama’s great at delivering speeches, albeit teleprompted, but as we
now all know, he doesn’t deliver. It’s rather pathetic to see that old loser and
jingoistic fake war hero fraud, senile, incompetent mccain who never saw a new
war opportunity he didn’t like despite america’s defacto bankruptcy (a policy the
post-election wobama’s promulgated) because of same being given air time as
some sort of wise old sage when he’s really just an old, stale joke who would
have been even worse than wobama but not by much, failed presidencies both. ]
Charles Manson & the Scientific Dictatorship Jurriaan Maessen | Just like
Manson, the scientific dictatorship would like to see the bodies piled up
high.
Obama, Corporate Media Ignore Widespread Health Problems On Gulf Coast Kurt
Nimmo | Obama gets to declare another mission accomplished while
residents of the Gulf suffer.
Charles Manson: Global Warming Prophet Paul Joseph Watson | James Jay Lee,
along with many prominent environmentalists and academics, share their
eugenicist belief system with the man who many consider to be evil
incarnate.
Gender bender chemical atrazine widely contaminates U.S. public water supply
David Gutierrez | Research indicates the U.S. water supply is widely
contaminated with the endocrine disrupting chemical atrazine.
The Impact of Fiat Money as the World’s Reserve Currency David Redick |
Nations can’t afford our exorbitant privilege of being both a fiat currency and
the world’s primary reserve currency.
The Imperial Anatomy of Al-Qaeda. The CIA’s Drug-Running Terrorists and the
“Arc of Crisis” As the 9th anniversary of 9/11 nears, and the war on terror
continues to be waged and grows in ferocity and geography, it seems all the
more imperative to return to the events of that fateful September morning
and re-examine the reasons for war and the nature of the stated culprit, Al-
Qaeda.
Climate Scientist: Manipulating Earth’s Climate Will Not Cost Taxpayer More than
$1 Billion… Annually! David Keith, director of the Institute for Sustainable
Energy, Environment and Economy, has proposed releasing engineered
nano-sized discs in the earth’s atmosphere to “offset global warming”- and
that for just $ 1 billion of your taxpayer-money annually.
Dollar falls to 15-year low against yen The dollar fell to a 15-year low against the
yen Tuesday, plunging at one point to 83.52, as the Japanese unit took
advantage of its status as a refuge currency amid global economic
uncertainty.
Austerity Strikes Hit France, Britain In France, unions called for a day of mass
strike action shutting down trains, planes, buses, subways, post offices and
schools in protest against President Nicolas Sarkozy’s pensions reform bill.
Former N.Korea soldiers to form group to topple regime Scores of former North
Korean soldiers who defected to South Korea will this week form a group
aimed at toppling the regime with the help of serving soldiers there, one of
its leaders said Monday.
Celebrating Job Losses ‘For now I will stick with the belief that Friday's action
was just another oversold rally in the context of a falling market. I would love for
the economy to right itself … Unfortunately I still don’t see or understand how we
are going to accomplish those things in the near term. I do see many technical
indicators flashing warning signs … Until then cash is the safest investment and
all celebrations should be put on hold.’
Sellers Cut Prices on 50% of Homes Homeowners are slashing prices more
drastically and more frequently, according to recently released data from
ZipRealty. The average price reduction is now 7.1 percent of list price.
Roubini: India May Overtake China within a Year Roubini warned that world
growth leader China was too dependent on exports to the struggling West
and predicted that within a year its economic growth will be overtaken by
India, a huge nation much more reliant on its domestic market for
development.
10 Reasons Why Conservatives Should Be Against Unfair Trade With China And
10 Reasons Why Liberals Should Be Against Unfair Trade With China
Liberals and conservatives should both be able to agree that it is not a good
thing for millions of American jobs to leave the United States and go to
China.
CNN’s ‘Glass One-Quarter Full’ Spin: Emphasize Private Job Gains The Bureau of
Labor Statistics released its “all-important” jobs report on Sept. 3, the
morning before Labor Day weekend. CNN rapidly found the “bright spot” in
a report that showed a net loss of 54,000 jobs and a higher 9.6 percent
unemployment rate.
Targeting American Citizens: CIA Takes Global Murder Policy to Next Level Kurt
Nimmo | The CIA has a long track record of targeting untold numbers of
people for elimination.
Vaccinate the World: Gates, Rockefeller Seek Global Population Reduction Daniel
Taylor | The war against population is an ongoing effort on part of the global
elite.
Irish protesters hurl bottles, eggs, shoes at phony tony blair (phony tony’s a total
fraud) during book signing Agence France-Presse | One woman said she tried
to make a citizen’s arrest on Blair once he was inside the bookshop where
the event was taking place.
Democrats running on austerity (Washington Post) [ Wee doggies! … The new

republican party is born … Actually, despite the myth, the reality is that under
Reagan ( and the bushies, and of course, wobama – clinton caught a break with
the peace dividend but the bureaucracy grew ) government spending significantly
increased along with the government bureaucracy. ] Fearing midterm wipeout,
party hopefuls embrace budget cuts with the zeal of Reagan Republicans.
Palin calls reporters 'impotent' and 'limp' (Washington Post) [ I must reiterate,
she, palin’s so embarrassingly dumb! She truly is the joke that keeps on giving! I
really mean it! I mean, what next? ] The former Alaska governor weighed in
herself: "Those who are impotent and limp and gutless and they go on their
anonymous -- sources that are anonymous -- and impotent, limp and gutless
reporters take anonymous sources and cite them as being factual references,"
she told Sean Hannity. "It just slays me ( this could be a somewhat Freudian slip
as she contemplates the uselessness of sexually non-interested reporters while
she meant lays and I think her supposed / purported attractiveness / desirability
is vastly overstated; but, this makes for great SNL skits; you know, those
reporters not man enough to service her ) because it's so absolutely clear what
the state of yellow journalism is today that they would take these anonymous
sources as fact."
Ex-bank executives say their dismissals caused panic withdrawals in Kabul (Post,
September 4, 2010; 8:52 AM) Karzai urges Afghans not to panic as bank
withdrawals accelerate (Post, September 4, 2010; 3:11 AM) Suicide bombing kills
at lesat 55 (Washington Post) Pakistan… After Iraq war, uncertainty and
seemingly mixed messages (Post, September 2, 2010; 4:26 PM) [ What do these
nations have in common? An american presence … and from the foregoing it’s
clear that this sounds like a reporting job for Rosanne Rosanna Dana of SNL
fame who has insight into such scenarios as this ‘cause her mama always said …
it’s always something! ]
U.S. to temper stance on Afghanistan corruption (Washington Post) [ Sounds

like a plan! After all, in america’s own image of corruption, ie., bribery, heroin
trade, etc., they’re remolding Afghanistan replete with good old american style
corruption and they don’t want no noses pokin’ around to see america’s direct
involvement in the corruption, bribery, etc., and particularly the heroin trade, the
american raison d’etre there where the Taliban had all but eradicated the heroin
production / trade which surged thereafter with the american participation. The
American rationale seems to be, continue the corruption, etc., since to eliminate
same would help the Taliban. Riiiiight! My, oh my! You can’t make this stuff up.]
Military officials conclude that effort to drive out all but the most corrosive
abuses in region would create a power vacuum that Taliban could exploit.
Economy treading water as jobless rate rises (Washington Post) [ Ah yes, sweet
Neil Irwin! He might just have those rosy fraudulent wall street glass half-full
word pictures on his mind. But, not to rain on his parade, I’d say that
drowning victim, Mr. Economy’s gone down for the third time! ] Neil Irwin
The unemployment rate rose to 9.6 percent, the Labor Department said
Friday, but private employers added 67,000 jobs -- data that offer a mixed
portrait of the labor market in an economy that is neither growing fast
enough to bring down joblessness nor sinking back into a new downturn.
Not-so-dire jobs report gives stocks a boost (Washington Post) AP Business
Highlights [ Wow! ‘Private employers hired more workers over the past three
months than first thought’ … Riiiiight! Especially with 2 months to the mid-term
elections (time for federal term limits and the abolition of lifetime appointments
for anything owing to the nation’s defacto bankruptcy), desperation with fake /
false data / reports; and, that negative but better than expected thing as
unemployment rate inches up to 9.6% (the real unemployment rate is
approximately 20+% with that ‘stopped looking’ fudge-factor giving them the false
positive). I mean, come on! Private reports on non-farm payrolls down each week,
but suddenly from out of nowhere defying virtually all economist estimates the ue
claims are up, and prior gov’t reports revised up. This is a great opportunity to
sell / take profits! ] ‘(AP)Companies add 67K workers, but jobless rate rises
WASHINGTON (AP) -- Private employers hired more workers over the past three
months than first thought, a glimmer of hope for the weak economy ahead of the
Labor Day weekend. But the unemployment rate rose because not enough jobs
were created to absorb the growing number of people looking for work ...’
Mark Hulbert's Take: What Are the Odds of a September Decline? at Seeking
Alpha (Fri, Sep 3) ‘Some of the work Mark Hulbert does is nothing more than
telling us what the gurus in the universe he follows are thinking individually and,
more frequently, in the aggregate. But of late, he also has been doing some far
more interesting analysis in the “Yale Hirsch” mode – and the results are not
satisfying if you are a bull.
The bullish case seems to rest on two platforms: (1) August was really bad
therefore September should be good in reaction to that, and (2) “Everyone” now
expects the current crop of politicos to suffer major setbacks in November and,
since the market is a predictive mechanism, investors are positioning themselves
today for what they believe will be wonderful news post-November (like an
extension of the current tax rates and a reduction in pork-barrel spending by
irresponsible pols.)
The Dow rallied more than 300 points the first two days of September so, making
the usual straight-line assumption, bulls believe that today is the day to get
invested, Hmmm. Let’s examine each of the above platforms in turn.
Quoting Mr. Hulbert’s conclusions based upon his historical analysis:
I have good news and bad news when it comes to slicing and dicing
the historical data as it pertains to September.
The good news is that it is possible, by carefully reading the
statistical tea leaves, to get advance insight into whether any given
month is likely to do better or worse than average.
The bad news: Those tea leaves provide no such hope that this
September will be able to beat its historical reputation as being awful
for stocks.
His research shows that since 1896 (the year the Dow Jones Industrial Average
was created,) the Dow has lost an average of 1.15% in September. The average
gain for all other months was 0.71%. Worse, a look at the historical record shows
that Septembers did not show a 1.15% decline following a bad August – they
showed a 2.7% decline! Typically, when August is down, as goes August, so goes
September -- only twice as bad as usual.
Worse than that, Hulbert notes, “During each of the past nine decades...
September's rank relative to other months in terms of performance was never
higher than ninth. It was dead last in five of those nine decades -- including the
most recent one.”
He adds a final bit of gasoline to this bonfire by noting that the CBOE's Volatility
Index (VIX) is relatively low going into September, the month tends to do better.
Uh-oh. The VIX at the end of August was quite a bit higher than 20. (And for those
who have followed our comments on the VXX and VXZ ETFs in the past, we
believe they have now entered an excellent buy area.)
As for the second platform, the market seldom reacts favorably to the same news
twice. I’ve been writing for two years that the pendulum will swing, that the 2008
election was a rejection of the guns-and-butter policy of the previous
administration and was little different than the voters’ rejection of President
Johnson’s guns and butter policies in 1968 (thrusting Richard Nixon into office
with disastrous consequences we hope are not repeated this time around), and
that mid-term elections are almost always about mitigating the euphoria of the
previous presidential election. This is not news!
The rally of September 1st and 2nd may have occurred as a result of Johnny-come-
latelies reaching the conclusion Wall Street reached about the mid-term elections
weeks or months ago. If that is the case, I imagine the smart money is rubbing
their hands with glee and using this rally to lay on bigger short positions.
The current rally was ostensibly about the fact that the Chinese Purchasing
Managers Index rose to 51.7 in August from 51.2 in July, followed by the news
that the U.S. ISM Manufacturing Index improved from 55.5 in July to 56.3 in
August. I don't see it – these incremental numbers are nothing but decimal dust
in the grand scheme of things! Easily manipulated by the bureaucrats in charge
of such numbers, the “improvement” is so small as to be barely measurable –
and to raise not a stir among the media when they are “revised” from “up 0.5%”
to “down 0.1%” or whatever in another month.
The other economic numbers that form the backdrop to this rally include:
Canada’s GDP fell to an annual rate of 2% in the 2nd quarter, down from 5.8% in
Q1; auto sales absolutely plunged in the U.S. and around the world; there was a
continued drop in U.S. construction spending; there were declining retail sales in
Euro nations; and the ADP employment report indicating that we didn’t just grow
jobs at too slow a pace to cover all the new workers entering the labor force, but
we actually lost some 10,000 private sector jobs! Government is still hiring, of
course, but we must always remember: the private sector is income, government
is overhead. That doesn’t mean we don’t need certain government workers – what
hellish existence would it be without fire and police protection, or good teachers
to educate our children? But it is still overhead even if we collectively choose to
pay for it in order to enhance our safety or literacy.
Bottom line: September tends to do worse in years that August has been bad.
August was bad. The news of the mid-term elections is already old news and will
most likely follow the historical path of all mid-term elections. We will return more
to the center. And the good news to propel the market higher is likely to be short-
lived. Clearly, we aren’t out of the woods yet. If the market is in a news-dominated
phase, we are likely in big trouble.
For our clients we are stressing safety, with inverse ETF protection from the likes
of ProShares Short S&P 500 (SH), ProShares Short Russell 200 (RWM), ProShares
UltraShort Nasdaq (QID) and ProShares Short MSCI Emerging Markets (EUM). (If
the US and Europe aren’t consuming, who is going to order stuff from the
emerging nations? They will fall if our markets and economies fall…) We are also
buying VXX and VXZ and are keeping our bond positions short and inflation-
resistant, as we do with WIP, TIP, BWZ, and MINT. Finally, we own some special
situations in precious metals, energy and agriculture. (See previous articles for
specifics, including this and this...)
AP Business Highlights [ Wow! ‘Private employers hired more workers over the
past three months than first thought’ … Riiiiight! Especially with 2 months to the
mid-term elections (time for federal term limits and the abolition of lifetime
appointments for anything owing to the nation’s defacto bankruptcy), desperation
with fake / false data / reports; and, that negative but better than expected thing
as unemployment rate inches up to 9.6% (the real unemployment rate is
approximately 20+% with that ‘stopped looking’ fudge-factor giving them the false
positive). I mean, come on! Private reports on non-farm payrolls down each week,
but suddenly from out of nowhere defying virtually all economist estimates the ue
claims are up, and prior gov’t reports revised up. This is a great opportunity to
sell / take profits! ]Companies add 67K workers, but jobless rate rises
WASHINGTON (AP) -- Private employers hired more workers over the past three
months than first thought, a glimmer of hope for the weak economy ahead of the
Labor Day weekend. But the unemployment rate rose because not enough jobs
were created to absorb the growing number of people looking for work ...’
Stocks Churning in Trading Range: Dave's Daily ‘This will be short. Perhaps the
image [old lady (wall street) churning (scam) butter (stocks)] and title should
suffice as a summary of the week. After all, I indicated "possibly" I might post on
Friday. The current market is a reprise of early July's rally from June's selloff.
Now into September the August lows are reversing. How durable will this be is
anyone's guess. Economic data was greeted with bullish enthusiasm as markets
were oversold after Monday's slump. The unemployment data was just about the
same as previous once you look deeper inside the data. The birth/death model is
just an estimate made out of thin air. Once you view the data ex-that, things look
pretty grim. There are very few players involved this week and perhaps in the
future. It's interesting many major banks are closing their proprietary trading
operations. This removes another important prop to markets as retail investors
have left the scene. Further, for stock mutual funds, the exodus continues for the
16th straight week. Cash balances at these funds are at historic lows of 3% as the
outflow continues. Curiously, short interest is also at an all-time low near 4%
meaning few for bulls to squeeze. We only have hedge funds and overseas
investors in the game. And, it does seem like a game more than ever now. Bulls
jumped on the oversold conditions on Wednesday as a DeMark 9 was registered
on Tuesday for most major market daily charts then. A rally on that technical
condition was no surprise ...’
Important Manufacturing Indicators Look Weak at Seeking Alpha (Fri, Sep 3)

Consumption Contraction Approaches 2008 Low at Seeking Alpha (Fri, Sep 3)
Beware the Big Red Leading Indicator at Seeking Alpha (Fri, Sep 3)
Small Investors Turns More Bullish (contrarian indicator) at Seeking Alpha (Fri,
Sep 3)
Unemployment Rate Edges up to 9.6% at TheStreet.com (Fri, Sep 3)
AAII Sentiment Survey: Bullish Sentiment Improves, But Bearishness Still
Dominates at Seeking Alpha (Fri, Sep 3)
Monthly Markets Review: Risk Aversion Rises in August as Double Dip Concerns
Grow at Seeking Alpha (Fri, Sep 3) ‘…The ECB keeping rates at a record low of
1% and zero interest policies in the US and in most western economies remains
bullish for gold as the opportunity cost, the lack of yield, of owning gold is
negligible, especially with inflation having picked up recently in many economies
internationally. Further signs of burgeoning food inflation were seen in the surge
in the price of global meat prices which have risen to 20 year highs … (chart)
September can be the 'cruelest month' for stocks. Conversely, more years than
not, precious metals prices perform well in September and many analysts reckon
this year will not disappoint those owning gold. Given the uncertain financial and
economic outlook, it is important that investors remain diversified with
allocations to cash, short dated government bonds, international equities, and
gold…’
More than 400 US Banks Will Fail: Roubini CNBC | More than half of the 800-plus
US banks on the “critical list” are likely to go bust, according to renowned
economist Nouriel Roubini.
U.S. unemployment soars to 9.6% after economy loses 54,000 jobs The U.S.
unemployment rate rose to 9.6 per cent in August, official figures released
today have shown. The data from the U.S. Labor Department showed the
economy lost 54,000 jobs last month as the United States continues to
struggle to recover from the recent global recession.
Government Economic Leaders Surprised that Real World Isn’t Responding to

their Magic Pixie Dust Many have tried to explain to the neoclassical
economists running the show exactly how bad the economic collapse would
be, why it was so bad, and how to mount an adequate response to fix things.
But Bernanke, Romer and the rest of the gang ignored them.
Why Lessons From The First Great Depression Mean The Next Four Months Will
Be Very Painful For Stockholders Scott Minerd, CIO of Guggenheim
Partners, parses through the years of the Great Depression, and focuses on
the pivotal 1936, which contained in it the seeds for the destruction of the
period of relative economic growth and stability from 1932 to 1936.
Michael Pento Says Fed Will Buy Stocks And Real Estate In Its Next Attempt To
Create Inflation Zero Hedge | Pento also goes into explaining why housing is
facing a “deflationary depression,” and a further collapse in pricing, why
inflation benefits only those closest to the money, i.e., the banks and the
military complex.
The U.S. Path to Collapse National Inflation Association | The pain that was felt after
the collapse of Lehman Brothers is nothing compared to the pain that will
come when we begin to feel the effects of bailing out the rest of Wall Street.
National / World
Globalist Soros Launches Frontal Assault Against Tea Party Kurt Nimmo | Soros
and the foundation left have launched a website designed to go after the
growing Tea Party movement.
ABC Nightline Hit Piece Smears Alex Jones As King of “Paranoia Porn” [ Yeah!
This is unequivocally indefensible on the part of abc (or nbc, fox, cbs, etc. if
they shared a similar mainstream media view) because there are so many
substantial nation-damaging behaviors that are in plain sight yet go
unreported (and unprosecuted). I’d feel more comfortable with a
Washington Post Network (possibly as a wholly owned subsidiary to militate
against the risks inherent to such a venture and the establishment of same).
While I do find Alex Jones’ somewhat overstated vaunted opinion of the so-
called elite a bit much, it’s not because these mental cases are not trying to
do as he has accused / shown, but rather because I find his ‘elite’ to be as
I’ve previously stated totally inept, incompetent vegetables who are
incapable of doing anything well or of substance. I’m really not exaggerating
when you look at their track records of inscrutable failure, if only because of
a lack of focus on and attention to such failure / corruption. This also
includes the ‘pols’ who make the case for term limits based upon any
previous service at all. I think people should be thankful that Infowars,
Prison Planet, Jones, et als, value the people / humanity enough to take the
very real risks, and expend his time and energy in sifting through the
plethora of b*** s***, obfuscation, and cover-ups to reveal the truth. Given
the inherent state of human nature, their lack of courage, integrity, etc.,
including that of americans generally, another area where I part company
with Jones et als and which, truth be told led them to censor my comments
to some of their articles (very hypocritical), such sacrifice by them seems
very difficult to justify; but the discomfort they give the dysfunctional
mainstream media is certainly a good thing of itself. ] Paul Joseph Watson &
Kurt Nimmo | Dan Harris proves yet again why the establishment media is
increasingly shunned and distrusted.
The True Cost of the War Paul Craig Roberts | America’s “war on terror,” a
fabrication, has resurrected the unaccountable dungeon of the Middle Ages
and the raw tyranny that prevailed prior to the Magna Carta.
Fluoride: Direct Engagement to Incite Public Inquiry Travis Crank | Wichita public
servants outwardly deny the fluoridation of our water.
Eugenics Alert: World Bank Population-Reduction Lending Schemes Already

Underway Jurriaan Maessen | The World Bank works in concert with all the
other arms of the octopus.
As Usual, MSM Gushingly “Predicts” Our Fascist Future [ This is quite shocking
inasmuch as they’d then be able to easily ‘off’ the recipient of such with a
few simple modifications of the chip for any of a multitude of bad reasons /
motives. I would never, under any circumstances, permit this for myself,
etc..] David Kramer | From the broadcasting arm of the number one New
World Order industrial corporation, General Electric, comes this story about
the “convenience” of being microchipped for identification.
Drudgereport: UNEMPLOYMENT JUMPS TO 9.6%...

Economy LOST 283,000 jobs during 'Recovery Summer' months...
NPR: 'Recovery Summer' Ends With Economic Pothole...
Labor Sec. Declares: 'There are jobs out there'...
TREASURY HEAD RUSHES BACK FROM VACATION; AIDES SEARCH FOR
OTHER JOBS PACKAGE...
120 Days to Go Until Largest Tax Hikes in History...
President Claims Job Creation; Doesn't Mention Net Job Loss of 54K...
HE NEEDS A VACATION: OBAMA TO CAMP DAVID...
Taxpayers to face initial loss on GM IPO; Treasury to sell first shares below
break-even...
David Rosenberg: The U.S. Is Suffering a Japanese-Style Depression Burrows
‘Presciently bearish David Rosenberg, the chief economist and strategist at
Gluskin Sheff who called the global meltdown back when he was still at Merrill
Lynch, isn't budging from his view that the U.S. is in a depression -- and a
prolonged, Japanese-style one at that. Rosenberg reminded clients on
Wednesday that here we are 33 months after the Great Recession began, and yet
home prices, gross domestic product, credit outstanding, organic personal
income and employment are all lower now than they were prior to the onset of the
downturn. "We can understand that this is not exactly cocktail conversation, but
this is a Japanese-style (even worse perhaps) modern-day depression,"
Rosenberg writes. "It's not the 1930s because soup lines have been replaced with
unemployment insurance lines -- over 10 million checks and for up to 99 weeks.
The poor souls who endured the bitter 1930s had no such relief." And as for the
U.S.'s vaunted labor flexibility and superior demographics saving it from a
Japanese sort of lost decade or two, well, Rosenberg is having none of it.
"Government policy and the record number of people upside-down on their
mortgage have seriously impaired the flexibility of the labor market," Rosenberg
writes. And the U.S. birth rate has declined for two consecutive years and is at its
lowest level in a century, he notes. Of course, it's no surprise to buy-and-hold
investors that U.S. equities have already notched a lost decade and then some.
Take a look at this 10-year chart of the S&P 500 ($INX): See full article from
DailyFinance: http://srph.it/aZTYr7’
[$$] U.S. Equity ETFs Implode ‘U.S. equity ETFs hemorrhaged assets during the
month of August as investors sought out emerging-market equity and debt along
with fixed-income picks. According to National Stock Exchange data (nsx.com)
released today, U.S. equity ETFs shed nearly $11 billion in assets last month.
Here's something remarkable: One U.S. equity ETF accounted for more than half
of these outflows. The SPDR S&P 500 ETF, arguably the ETF industry's most
iconic fund, saw net outflows totaling more than $6.6 billion last month. Who
were the biggest losers besides SPY? You'll recognize some of these names: the
PowerShares QQQ ETF, the iShares Russell 2000 ETF and the SPDR DJIA ETF
saw net asset outflows of $2 billion, $1.7 billion and $616 million, respectively. At
the other end of the spectrum, the Vanguard MSCI Emerging Markets ETF and the
iShares MSCI-Emerging Markets ETF attracted $1.9 billion and $1.8 billion,
respectively, while the...’
David Rosenberg: The U.S. Is Suffering a Japanese-Style Depression Presciently

bearish David Rosenberg, the chief economist and strategist at Gluskin
Sheff who called the global meltdown back when he was still at Merrill
Lynch, isn’t budging from his view that the U.S. is in a depression — and a
prolonged, Japanese-style one at that.
The U.S. Path to Collapse The combination of more government spending and
less taxes equals massive inflation, but this represents the state of mind in
Washington today. Inflation is still the last thing on their minds because they
don’t see it yet.
Can A Family Of Four Survive On A Middle Class Income In America Today?

When I was growing up, $50,000 sounded like a gigantic mountain of money
to me. And it was actually a very significant amount of money in those days.
But in 2010 it just does not go that far. Today, the median household income
in the United States for a year is approximately $50,000.
The Reckless Mess Created by The Fed Quantitative easing will put the American
public at ease, at least temporarily. They do not realize it but the American
and world economies are in a deliberate state of slow collapse. Yes, the Fed
has created a terrible mess. They have been totally unprofessional and
reckless.
US Retail Sales Top Estimates on Tax Holidays, Discounts Bloomberg A family

walks toward the entrance to the Kohl's store in Round Rock, Texas.
Photographer: Jack Plunkett/Bloomberg US retailers reported August sales
that beat analysts' estimates as ...
Retail sales, home contracts rise modestly (Washington Post) [ Forced /

Distressed / Underwater pending / foreclosure sales the impetus for short-
covering / suckers’ rally on light and hence, easily manipulated, pre-holiday
computerized trade volume. The government, desperate and defacto bankrupt, is
back to their fake / false data reporting; you know, the kind that spurs the
fraudulent wall street rallies and gets revised by 35% + down later as with GDP
just recently, but the wall street frauds will get their commissions again on the
way down. YAHOO [BRIEFING.COM]: ‘…Early participants had little reason to
alter their mood since the initial jobless claims count for the week ended August
28 came in at 472,000, which is in on par with the 475,000 initial claims that had
been widely expected. The latest tally was also little changed from the prior week
total of 478,000. Continuing claims saw a more substantial slip as they fell to 4.46
million from 4.48 million. Final nonfarm productivity readings for the second
quarter also offered little surprise. Productivity in the quarter fell 1.8%, which is in
stride with the 1.7% decline that had been widely forecasted. Unit labor costs for
the quarter increased 1.1%, as expected. Pending home sales for July provided
participants with a positive surprise. They posted a 5.2% monthly increase, which
contrasts with the call for no change from economists polled by Briefing.com.
That data overshadowed news that factory orders for July increased 0.1% instead
of 0.3% as had been widely expected…’ Stocks rise on economic hopes ahead
of payrolls (Reuters) Riiiiight! Sounds like a plan! ]
Nation / World
Gun Confiscation in Response to Hurricane Earl? Kurt Nimmo | In New Orleans,

police and National Guard confiscated weapons and violated the Second
Amendment.
California Cops Taser Senior Citizen in His Own Home Kurt Nimmo | In America,
now officially a police state, you will be tasered in your own home if you lip
off to the police.
World Bank Threatens “Drastic Steps Necessary” if Nations Refuse Population

Reduction Implementation Jurriaan Maessen | A World Bank report suggests
introducing “sterilization vans” and “camps.”
British Attorney General moves toward re-opening investigation into mysterious

death of Iraq weapons inspector Raw Story | The United Kingdom’s top law
enforcement official has taken possession of secret files surrounding the
murder of David Kelly, a prominent WMD researcher who was found dead in
the months after the invasion of Iraq.
New Evidence Of Controlled Demolition On 9/11 In the video, at about the 0:59
mark, a high-pressure explosion occurs in one of the Twin Towers, below
the impact zone, while the building is still standing.
Update: Mile-Long Oil Sheen Reported Spreading From Site Of Gulf Platform
Explosion The Coast Guard is on the scene of another oil rig fire in the Gulf
of Mexico. Officials are now reporting a mile-long oil sheen spreading from
the site.
Karzai’s brother calls for U.S. to shore up Kabul Bank as withdrawals accelerate
As depositors thronged branches of Afghanistan’s biggest bank, Mahmoud
Karzai, the brother of the Afghan president and a major shareholder in
beleaguered Kabul Bank called on Thursday for intervention by the United
States to head off a financial meltdown.
Mexico drug kingpin says he received trailers of US cash A captured Mexican

drug kingpin admitted to “investments” in Colombia and said he had
received trailers full of dollars from the United States, in a first interrogation
video released here.
‘Iraq war based on lies and deception’ Former Reagan Administration official Paul
Craig Roberts says that we didn’t hear why we initially went to war with Iraq,
although the world knows was based on lies and deception.
Pakistan military abandons US trips after being ‘mistaken for terrorists’ Pakistani
officials said the officer, weary from the journey to the US, had said, “I hope
this is the final plane to the destination” causing a female passenger, who
believed he was threatening the aircraft, to panic.
Drudgereport: TIME: (WOBAMA) MR. UNPOPULAR... FLASHBACK:

(WOBAMA) TIME MAN OF THE YEAR 2008...
Calls for USA to shore up Afghanistan Bank as withdrawals accelerate...
UPDATE: Oil rig explodes in Gulf of Mexico; 7 active wells on platform...
COAST GUARD: Mile-long 'oil sheen' spreading...
Russian police raid opposition magazine... [They don’t often do this overtly in
america anymore since most media is in cahoots / controlled; but still, no excuse
for putin who is often disengaged as when he is out shooting Siberian Tigers with
sophisticated weaponry. ]
Pledge beaten by sorority sisters who warned her 'snitches get stitches'... ‘… In
her lawsuit, excerpted here, Howard noted that she had originally planned to
pledge Alpha Kappa Alpha, the oldest African-American women’s sorority. But
since the sorority’s San Jose chapter has been suspended due to hazing
activities, Howard opted to join Sigma Gamma Rho, believing that “they
represented the ‘sisterhood’ she sought in a sorority.” However, Howard
contends, that the group’s pledge process was far from sisterly. According to her
complaint, she and fellow pledges were punched, slapped, kicked, slammed into
walls, struck with a wooden spoon and a cane, and had books and coins thrown
at them during a series of 16 nighttime initiation sessions. Howard recalled one
evening when a sorority sister told her to close her eyes. She was then struck on
the buttocks with what she later learned was a kitchen pot. The pledges were also
frequently struck with a wooden paddle, Howard said, blows that left her with
welts on her buttocks. Howard reported that pledges were repeatedly warned not
to talk with friends and family about the initiation process, since “snitches get
stitches.” They were also told that if they failed to participate in certain pledge
activities, they would be “jumped out,” a gang term for a beating conducted by all
members of the group. Howard’s complaint names as defendants San Jose State
University, Sigma Gamma Rho, and various sorority members, including a quartet
of women who, court records show, pleaded no contest earlier this year to
misdemeanor hazing charges. The defendants--Princess Odom; Monique
Hughes; Joslyn Beard; and Nicole Remble--were each sentenced to 90 days in
jail, directed to serve two years of court probation, and barred from involvement
with any sorority. Odom, Hughes, Beard, and Remble (all negroes) are pictured
here, clockwise from upper left, in San Jose Police Department mug shots.’
Pearlstein: Put millionaires' tax money to good use (Washington Post) [ Nobody
likes even the sound of higher taxes, particularly when the same goes for such
waste as porkbarrel, political spending but especially the nation-bankrupting
needless war spending, the black budgets, etc.. That said, Mr. Pearlstein is quite
right, especially when one considers the source of the ‘largesse’, viz., nation-
bankrupting war criminal moron dumbya bush who snidely smirked as he talked
of ‘his (political) base’ and all the ‘politicking’ entailed in same. Remember… the
nation is defacto bankrupt! Moreover, I don’t buy that ‘most productive’ sector
being ‘disincentivized’ unless measured by the magnitude of their frauds (ie., wall
street, etc.), transfer of the nation’s productive capacity (ie., u.s. ceo’s and
politicians, etc., with few exceptions). Additionally, their marginal propensity to
consume is less than that of lower wage earners (economics) ]
Bernanke: Regulators fell short in identifying problems (Washington Post) [ Now
we know why and what the initials B.S. (for B*** S*** ‘no-recession-helicopter
ben’) preceding bernanke stand for. Come on! Say the prosecution word and
all’s forgiven. Everyone knows that the criminally insane on wall street have
been / are engaged in a huge fraud and there are hundreds of trillions of
worthless paper still out there and marked to anything to prove it. See
Graham Summers’ exposé, infra. ] In a lengthy analysis of the financial
crisis, the Fed chairman says the government did not do enough to protect
consumers in the marketplace.
Karzai calls aide's arrest reminiscent of Soviet times (Washington Post) [ Exactly,
eerily, certainly realistically reminiscent of the former soviet union is the
american union in terms of economics (defacto bankrupt), geopolitics
(intensely hated), and even factual similarity (the final straw), with an
unmistakable modus operandi that gives rise to failure beyond the
propaganda. After all, corruption is as american and pervasive in america as
apple pizza pies and mother of hoods, etc. ]
Army supervisor was worried about leak suspect's mental health, attorney says
(Washington Post) [ One cannot help but hearken back to a frequently deployed
‘government at its worst’ strategy, ie., Ellsberg/Pentagon papers, former soviet
union, etc., in attempting to discredit such informants, etc., which of course is a
telltale sign of america’s similar fate / decline / fall. ]
What if Roger Clemens is telling the truth?

http://voices.washingtonpost.com/hard-
hits/2010/08/what_if_roger_clemens_is_telli.html I ordinarily don’t comment on
sports matters but this is one of those exceptions. While not in any way
dismissing the seriousness of the prevalent use, for quite some time, of
performance-enhancing drugs, my own position on the matter was to place an
asterisk next to those who made the record-books so-doing (still matters of
proof) with a more stringent policy going forward. Where does an incompetent,
nation-bankrupting, non-performing congress get off going after a performance-
driven baseball player when huge crimes, warcrimes, frauds from this same
government are still unprosecuted? Ask the wall street frauds the tough
questions … they’ll lie. Then, even assuming, arguendo, Clemens slipped up …
picture the alice-in-wonderland surreal scene presided over by that mammalian
rodent-like presence of that incompetent in the semblance of some beaver-
toothed woodland creature as, ie., hedgehog, gopher, etc., amidst characters that
would rival the famed mad tea party, mad-hatters all. There are far bigger fish to
fry and of greater consequence to the nation but their lack of courage and
incompetence is the only consistency on capital hill, and everyone knows it. How
pathetic! After all, aren’t all three branches of the u.s. government a lie of
themselves, and have a near single digit approval rates to prove it.
Pa. capital nearing bankruptcy (Washington Post) [ Sounds like a dry run for the
nation’s capital. Drudgereport: MORGAN STANLEY: Government Bond Defaults
Inevitable … Everyone who is capable of thinking knows america is defacto
bankrupt. The question is, how did Morgan Stanley’s assessment escape scrutiny
and follow-up by the press. Indeed, it is certainly a breach of duty to have done
so in light of the implications. ] In a highly unusual move, the city of Harrisburg
says it will not make a $3.3 million payment.
Automakers report weak sales (Washington Post) [ This really is sobering, yet
totally lost on the frauds that be on wall street. ‘Cheapskates’? Mr.
Whoriskey should be ashamed of himself. After all, you can’t spend what
you don’t really have (unless you’re defacto bankrupt … america ) and, let’s
not kid ourselves, Mr. Whoriskey has to be considered somewhat ‘ivory
tower’. ] Chastened by the recession, more U.S. consumers have become
cheapskates: They are saving more and driving older cars. And that, in part,
explains the historically dismal sales reports released Wednesday by
automakers.
Manufacturing rebound spurs stock rally (Washington Post) [ Riiiiight! That new
global hub of (very high priced) manufacturing activity … Defacto bankrupt
america …I don’t believe the ISM number for even a minute, even with the
defacto bankrupt government’s market-frothing spending of money they
definitely don’t have and believe the forecasters were closer to reality.] After
their worst August in nine years, stocks kicked off September with a big
snap-back rally, following the release Wednesday of surprisingly good news
about the U.S. manufacturing sector.
Obama prods Mideast leaders (Washington Post ) [ The real question is … who is
going to prod defacto bankrupt, war crimes nation america … on peace, that is.
Then there’s that ‘oh, it’s just war crimes, illegal nuke-toting israel … laws, rules,
un resolutions, etc., don’t apply to them factor and the concomitant skepticism
attendant thereto. ] Israeli Prime Minister Netanyahu and Palestinian President
Abbas are set to open direct peace talks.
Five reasons to be optimistic about the economy (Washington Post) Neil Irwin |
(Very) Political Economy [The unflappable Mr. Irwin. Fraudulent wall street’s
shill and man for all seasons falls in with the following as his glass half-full
runneth over: Those Who Ignore History... [The aforementioned from The
Pragmatic Capitalist is a cogent summary of extant problems which
undoubtedly will end quite badly for the unwary (today’s folly represents a
great opportunity to sell / take profits), infra, and should be read in tandem
with Graham Summer’s exposé which follows. Yet, the situation as
realistically bad as they’ve so presented same, is far more dire than even
they posit for the u.s. particularly owing to structural problems now inherent
to america’s economy / business model which bodes ill as never before in
america’s relatively short history. U.S. Stocks Surge On Overseas Growth
Riiiiight! Some of the same mainstream, (msnbc) ‘money honey’ drivel one
would expect from Forbes faux ‘capitalist tool’ cheerleading squad, totally
devoid of forward-looking analytical prowess and leaves you burned every
time. Come on! Government Motors and Ford sales were down significantly,
construction spending down, private sector jobs lost, and even BofA’s
Merrill Lynch has sugar-coated the reality cutting the wall street frauds a
break by calling this a ‘growth rececession’. The typical fraudulent wall
street churn-and-earn computerized trade scam with built in commission
volume for the way down. Sorry to say it, but the reality is: This is a global
depression. This is a secular bear market in a global depression. The past
up move was a manipulated bull (s***) cycle in a secular bear market. This
has been a typically manipulated bubble as has preceded the prior crashes
with great regularity that the wall street frauds and insiders commission and
sell into. This is a typical wall street churn and earn pass the hot potato
scam / fraud as in prior crashes’. This national decline, economic and
otherwise, will not end until justice is served and the wall street frauds et als
are criminally prosecuted, jailed, fined, and disgorgement imposed.]
The worst of this next depression is likely to hit between mid-2010 and mid-
2013, especially around early 2011, but if the banking system continues to
implode a deep downturn or depression could begin sometime in 2009
instead of 2010.
Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the
latest.
Greatest Economic and Banking Crisis since the 1930s will Occur Between
2010 and 2012 Economists Herald New Great Depression The world is
according to a prominent economist who has added his voice to scores of
others now forecasting ongoing economic doom on a scale not seen since
the 1930s.] The Pragmatic Capitalist ‘My position over the last 2 years has
been as follows: this is a Main Street debt crisis. I have been highly critical
of the government’s incessant interventionist policies over the last few
years largely because they ignore the actual problems at hand. First it was
Mr. Bernanke saving the banks because he believed the credit crisis started
with the banking sector. The great monetarist gaffe ensued. Tim Geithner
piled on with the PPIP. FASB jumped on board the bank rescue plan by
altering the accounting rules. And then the icing on the cake was the
Recovery Act, which, in my opinion, just shoveled money into the hole that
had become the output gap, without actually trying to target the real cause
of the crisis – those burdened by the debt. In essence, the various bailouts
primarily targeted everyone except the people who really needed it.
A year ago I posted a story citing the many reasons why we were sinking into the
deflationary Japanese trap. The primary flaw with the US response to the crisis
was that we never actually confronted the problem at hand. I have often cited
Japanese economists such as Richard Koo who appear to have a good grasp on
the problems in Japan and now in the USA. In this case, I cited Keiichiro
Kobayashi who is now looking most prescient:
We continue to ignore our past and the warnings from those who
have dealt with similar financial crises. Keiichiro Kobayashi, Senior
Fellow at the Research Institute of Economy, Trade and Industry is
the latest economist with an in-depth understanding of Japan, who
says the U.S. and U.K. are making all the same mistakes:
“Bad debt is the root of the crisis. Fiscal stimulus may help
economies for a couple of years but once the “painkilling” effect
wears off, US and European economies will plunge back into crisis.
The crisis won’t be over until the nonperforming assets are off the
balance sheets of US and European banks.”…
Read that last paragraph again. These are scarily accurate comments. While the
USA claims to have many economists who understand the Japan disease and/or
the Great Depression the policy actions we’ve undertaken do not appear to be in
line with any understanding of this history.
What we’ve done over the last few years is repeat the mistakes of Japan’s past.
Instead of confronting the debt problems head on we have simply tried to fill the
output gap with short-term spending plans and impotent monetary policies. As
Kobayashi presciently said, the “bad debt is the root of the crisis”. I think most
mainstream economists, the administration and the Fed have continually
misdiagnosed our problems. They have attempted to save the banking sector and
simply fill in holes with spending plans that prop up markets, entice more
borrowing and largely ignore the actual cause of the current crisis. Some
economists have argued that the Recovery Act didn’t fail, but that it was too
small. This is like saying that the cancer patient didn’t receive enough percocet.
More percocet isn’t the cure. Targeting the cancer and trying to cut it out is the
cure. Yet, we continue to ignore the lessons of Japan despite having so many
“experts” on the Japanese disease. Therefore, we appear destined to repeat their
horrid economic history assuming our current path isn’t miraculously altered.’
WHO ELSE IS CLUELESS IN THE FINANCIAL SECTOR? [ As I’ve previously said

and reiterate here, the lunatic frauds on wall street are criminally insane and the only
way to stop / deter their debilitating churn and earn among other computerized frauds is
prosecution, jail, fines, and disgorgement! Once again they’re back to their huge
fraudulent gains as seen this reporting period despite growing problem bank list,
worthless paper from the prior fraud in the (hundreds of) trillions now marked to
anything, and look at August results and worse to come; that money for their
commissions / premiums must come from someplace, viz., the bubble which will
deflate / crash. ] Graham Summers ‘Here’s a zinger of a news story:
Barclays Plc had no idea how big Lehman Brothers

Holdings Inc.’s futures-and-options trading business
was when it considered taking over the defunct bank’s
derivatives trades at exchanges in 2008, a Barclays
executive said.“Lehman’s books were in such a mess
that I don’t think they knew where they were,” Elizabeth
James, a director of Barclays’s futures business, testified
today in U.S. Bankruptcy Court in Manhattan. James worked
on Barclays’s purchase of Lehman’s brokerage during the
2008 financial crisis.-- Bloomberg
I’ve railed for months that the central issue surrounding the Financial Crisis (derivatives)
was not only misunderstood but completely ignored by the mainstream financial media.
Here we are, nearly two years after Lehman Brothers went bust, and they’re telling us
that Lehman had “no idea” what its options and futures exposure was.
Let’s put this into perspective.
The notional value of the derivatives market at the time that Lehman went bust was
somewhere between $600 trillion and $1 Quadrillion (1,000 trillions). It was a market of
inter-linked paper contracts entangling virtually every financial institution (including
some non-financials), country (Greece, Italy used derivatives to get into the European
union), and county (Birmingham Alabama is one example) in the world. As a market it
was at least 20 times larger than the world stock market and somewhere north of
10 times World GDP.
In other words, this was the giant white elephant in the living room.
And here’s Lehman brothers, one of Wall Streets’ finest, most respected financial
institutions which had been in business for over 150 years announcing that it had “no
idea” “if it had sold $2 billion more options than it had bought, or whether it owned $4
billion more than it had sold.”
In today’s world of trillion dollar bailouts, $2-4 billion doesn’t sound like much, so let’s
give some perspective here… in its golden days, Lehman Brother’s market cap was
roughly $47 billion. So you’re talking about bets equal to an amount between five and
10% of its market cap. Not exactly chump change.
And Lehman had no idea where it was or how much it really owed.
Mind you, we’re only addressing Lehman’s options and futures derivatives, we’re
completely ignoring its mortgage backed securities, collateralized debt obligations
(CDOs), and other Level 3 assets. Options and futures are literally the “tip of the
iceberg,” the most visible portion of the behemoth that was Lehman’s off balance sheet
derivative issues. After all, these are regulated securities, unlike most derivatives.
Now, if the above statement doesn’t send shivers down your spine, have a look at the
notional value of derivatives exposure at the top five financial institutions in the US
(mind you, this chart is denominated in TRILLIONS). [chart]
If Lehman had “no idea” what it owned even when it came to options and futures
(regulated derivatives), what are the odds that these other firms, whose derivative
exposure is tens if not hundreds of times larger than that of Lehman’s, might similarly be
“in the dark’ regarding their risk?
Moreover, who on earth might be on the opposite end of these deals? Other US
counties like Birmingham Alabama (which JP Morgan transformed into 3rd world
country status)? Other countries like Italy or Greece (who used Goldman’s financial
engineering to get into the European Union)? My next-door neighbor’s house? Tim
Geithner’s long-lost tax returns? WHO KNOWS?
The point is that the very same issues that nearly took the financial world under
in 2008 still exist today. In fact, this time around the systemic risk is even more
severe.
Consider that the Credit Default Swap (CDS) market which nearly took the financial
system down in 2008 was roughly $50-60 trillion in size. In contrast, the interest rate
based derivative market is in the ballpark of $500+ trillion.
Indeed, US commercial banks alone have $182 TRILLION in notional value of interest
rate based derivatives outstanding right now. To put that ridiculous number in
perspective it’s 13 times US GDP and roughly three times WORLD GDP…’
Predicting This Year's Bank Failures ‘The FDIC’s quarterly banking profile,
providing data for quarter 2, was released today. The number of 2010 United
States bank failures will likely exceed the 2009 failures, the FDIC reported. This
was as I reported in this space back in May. Thus far this year there have been
118 bank closings, which compares to about 80 by the same time of year in 2009.
The number of banks on the problem list is still rising. It is now at 829 banks…’
U.S. Auto Sales May Hit 28-Year Low as Discounts Flop Bloomberg | U.S. auto
sales in August probably were the slowest for the month in 28 years as
model-year closeout deals failed to entice consumers concerned the
economy is worsening and they may lose their jobs.
A Termite-Riddled House: Treasury Bonds Gonzalo Lira | The United States will
have a fiscal-debt-to-GDP ratio of 100% this year, and 110% next year — if
not higher.
The Reckless Mess Created by The Fed Quantitative easing will put the American
public at ease, at least temporarily. They do not realize it but the American
and world economies are in a deliberate state of slow collapse. Yes, the Fed
has created a terrible mess. They have been totally unprofessional and
reckless.
Gold Is Surging This Morning, And Within A Rock’s Throw Of A Brand New
Record Oh hello. The high is just above $1260, so it could happen today
easily. Stocks are rallying, too, so you know the dollar is getting whacked. It
is.
Second Leg of Crisis Beginning: Hedge Fund Manager September and October
hold bad news for stock markets and banks remain overleveraged as we
head into the second leg of the financial crisis according to Pedro De
Noronha, the managing partner at Noster Capital in London.
Winners And Losers The reality is that it has now become undeniable that
globalism has arrived and we are now part of a world economy that is
integrating at lightning speed. Unfortunately, all of this globalism has
created some very clear winners and losers. But most middle class
Americans are in such a deep sleep that they don’t even realize that they are
the losers.
Drudgereport: Auto sales: Worst August since 1983...
National / World
Death By Globalism Paul Craig Roberts | The Federal Reserve will monetize the
federal government deficit. The result will be high inflation, possibly hyper-
inflation and high unemployment simultaneously.
What Obama Didn’t Say About Afghanistan Ray McGovern | My Fellow

Americans… so much for Iraq. Turning now to Afghanistan…
Vaccine Death Coverup Implodes Worldwide Infowars.com | Once again the

government wants to push it’s mercury filled vaccines on everyone,
especially children.
Increase in federal spending hits record (Washington Post) [ Sounds like a plan
… the ‘increase the depth of the nation’s bankruptcy’ plan! And, unlike other
american plans, this plan’s working … that bankruptcy thing … but otherwise,
not! ]
Is the U.S. Bankrupt? [YES!] (at Motley Fool) The Administrative Office of the U.S.
Courts recently reported that bankruptcy filings between April and June hit a
four-year high. Consumer bankruptcies rose 21 percent while business
bankruptcies increased eight percent. The list of corporate bankruptcies over the
last couple of years includes big names like Lehman Brothers, Washington
Mutual, and GM. And financial institutions like Bank of America (NYSE: BAC),
Citigroup (NYSE: C), Wells Fargo (NYSE: WFC) received billions of dollars through
the federal government's Troubled Asset Relief Program. Should investors add
the U.S. government to that list of big name bankruptcies? I recently asked
Boston University economics professor Lawrence Kotlikoff, author of Jimmy
Stewart is Dead: Ending the World's Ongoing Financial Plague with Limited
Purpose Banking.
Mac Greer: Larry, I noticed the headline or the title of a recent article that you
wrote, US is Bankrupt and We Don't Even Know It (see infra)
Home prices up 4.2 percent in U.S. (Washington Post) [And america and
ultimately taxpayers paid for every percentage point with money they and soon
taxpayers don’t have and experts say the expiration of same will further be felt in
the form of declining real estate prices going forward. ]
For banks, good news on earnings but not risk of failure (Washington Post) ( The
same fraudulent game plan that caused the previous and continuing
debacle: The following from Graham Summers is truly mind-boggling and a
must-read: WHO ELSE IS CLUELESS IN THE FINANCIAL SECTOR? [ As I’ve
previously said and reiterate here, the lunatic frauds on wall street are
criminally insane and the only way to stop / deter their debilitating churn and
earn among other computerized frauds is prosecution, jail, fines, and
disgorgement! Once again they’re back to their huge fraudulent gains as
seen this reporting period despite growing problem bank list, worthless
paper from the prior fraud in the (hundreds of) trillions now marked to
anything and the current fraud, and look at August (market) results and
worse to come, that money for their commissions / premiums must come
from someplace, viz., the bubble which will crash. ] ) Lenders post their
biggest quarterly profit in almost three years, even as the number of banks
at risk of failure rose to 11 percent of insured institutions.
Predicting This Year's Bank Failures ‘The FDIC’s quarterly banking profile,
providing data for quarter 2, was released today. The number of 2010 United
States bank failures will likely exceed the 2009 failures, the FDIC reported. This
was as I reported in this space back in May. Thus far this year there have been
118 bank closings, which compares to about 80 by the same time of year in 2009.
The number of banks on the problem list is still rising. It is now at 829 banks…’
Ron Paul to Fed, Ft. Knox: Show Me the Gold at Minyanville
The Deteriorating Macro Picture
1. The explosion in private debt (excessive housing borrowing, excessive

corporate debt, etc) levels would reveal the private sector as unable to
sustain positive economic growth, de-leveraging and deflation would
ensue.
2. Government intervention would help moderately boost aggregate demand,
improve bank balance sheets, improve sentiment, boost asset prices but
fail to result in sustained economic recovery as private sector balance
sheet recession persists.
3. Extremely depressed estimates and corporate cost cutting would improve
margins and generate a moderate earnings rebound, but would come under
pressure in 2010 as margin expansion failed to continue at the 2009 rate.
4. The end of government intervention in H2 2010 will reveal severe strains in
housing and will reveal the private sector as still very weak and unable to
sustain economic growth on its own.
The rebound in assets was surprisingly strong and the ability of corporations to
sustain bottom line growth has been truly impressive – far better than I expected.
However, I am growing increasingly concerned that the market has priced in
overly optimistic earnings sustainability – in other words, estimates and
expectations have overshot to the upside.
What we’ve seen over the last few years is not terribly complex in my opinion.
The housing boom created what was in essence a massively leveraged
household sector. The problems were compounded by the leveraging in the
financial sector, however, this was merely a symptom of the real underlying
problem and not the cause of the financial crisis (despite what Mr. Bernanke
continues to say and do to fix the economy) …’
Gold Surges To Near $1,250, As Stealthy Flight To Safety Accelerates, Stocks

Oblivious As stocks continue to correlate with exactly nothing, and are once
again lost in their own HFT dreamworld, which fools Atari in believing the
toxic crap it is churning millions of times each second is worth something
(and the exchanges gladly continue to pay liquidity rebates for said churn),
the capital continues to quietly flow to safety.
Bankrupt Miami in Fiscal Emergency, Breaks Employee Contracts, Hikes Property

Taxes In an enormously foolhardy attempt to make ends meet, in spite of the
fact that Miami home prices have been hammered and 1-in-8 are
unemployed, the County keeps pouring on the painful tax and fee increases.
Gold Rallying to $1,500 as Soros’s Bubble Inflates Investors are accumulating

enough bullion to fill Switzerland’s vaults twice over as gold’s most-
accurate forecasters say the longest rally in at least nine decades has
further to go no matter what the economy holds.
30 Statistics That Prove The Elite Are Getting Richer, The Poor Are Getting Poorer
And The Middle Class Is Being Destroyed Not everyone has been doing
badly during the economic turmoil of the last few years. In fact, there are
some Americans that are doing really, really well. While the vast majority of
us struggle, there is one small segment of society that is seemingly doing
better than ever.
Obama promises new efforts to boost economy (Washington Post) [ New efforts
with the same old failed team covering for the previous same old failed
team? The same promised new efforts which were nothing new at all; viz.,
focus on new war in Afghanistan, increase budget deficits, a penchant for
the very perps who precipitated the financial crisis and who should have
been prosecuted, jailed, fined and disgorgement imposed, etc.. No details?
What’s the matter wobama? Teleprompter not working? ]Obama offered no
new proposals during brief remarks in the Rose Garden, saying he would
provide details "in the days and weeks to come."
Car sales, spending up, but experts not convinced of trend (Washington Post)
[ I’d say time for ‘mouth to mouth resuscitation’ and a closer look isn’t even
necessary. Some experts? Just ask any guy on main street. Treading water? I’d
say time for post-mortem on the drowning victim.] But a closer look at those car
sales raises questions about whether the auto market - and consumer spending
as a whole - are indeed on an upward arc or whether they are just treading water.
Obama to loosen rules on technology exports (Washington Post) [ Oooooh!

Sounds like a continuation of the ‘clinton plan’ regarding missile among
other technologies to China which worked so well for america in maintaining
its prominently global position vis-à-vis communist china et als. Come on!
wobama’s so done! Let the next president determine the probity of such a
course! ] White House is overhauling the decades-old rules for the export of
sensitive military and other technology, jettisoning what industry groups
criticize as an antiquated "Cold War" set of regulations.
In the Middle East, it's still 1947 (Washington Post) [ Indeed it should be! Among
the few times the cia was correct, and they’ve been trying to put square pegs in
round holes ever since, to america’s substantial detriment. I wonder what what
those american sailors of the US Liberty killed by the israelis would say? USS
Liberty Survivor Threatened by Unknown Israeli This is what happened to Phillip
F. Tourney, decorated war hero and survivor of Israel’s premeditated attack on
the USS Liberty 43 years ago. On the evening of Aug. 6, Tourney was verbally
threatened by a foreign national claiming to work for the government of israel. As
for the purported disdain shown for war mongerer netanayahu, if only wobama’s
actions matched his words, the same would represent a major plus for him and
the nation of america, so sorely in need of pluses whether the same be budgetary
or economic or geopolitical. In fact, for America to abrogate 1948 would
positive sense. ]
In 1948, U.S. Secretary of Defense James Forrestal, an opponent of the creation

of a Jewish state in Palestine, warned that, even though failure to go along with
the Zionists might cost President Truman the states of New York, Pennsylvania,
and California, it was about time that somebody should pay some consideration
to whether we might not lose the United States. Mr. Forrestal was absolutely
correct! Isn’t that exactly what’s happened to defacto bankrupt america in
intractable decline.
TIME TO REVOKE AND NULLIFY THE BALFOUR DECLARATION AND ABROGATE

THE CREATION OF THE NATION STATE OF ISRAEL IN THE INTERESTS OF
FAIRNESS, JUSTICE, PEACE AND PROSPECTIVE PROSPERITY FOR THIS
WORLD!
Obama speech on Iraq has risks (Washington Post) [ Yeah, very true indeed! The
main one being that he’s supplanting that illegal, unnecessary, nation-
bankrupting war with yet another in Afghanistan which will not be lost on those
who supported his candidacy based on promised end to unnecessary war
policies which have diverted time, attention, ill-afforded resources including
personnel and continue to do so even as defacto bankrupt america crumbles. ]
Home prices up 4.2 percent in U.S. (Washington Post) [And america and
ultimately taxpayers paid for every percentage point with money they and soon
taxpayers don’t have and experts say the expiration of same will further be felt in
the form of declining real estate prices going forward. ]
In the Eye of a Financial Katrina - http://seekingalpha.com/author/wall-street-

sector-selector Sunday, August 29th, was the fifth anniversary of Hurricane Katrina’s
landfall along the Gulf Coast and all of us vividly remember the horrific images of that
day and the days and weeks after. Five years later, the Gulf Coast has come a long way
but most would agree there’s still have a long way to go and many scars yet to be
healed. In the world of money and investing, the Financial Katrina hit three years ago
this month with the beginning of the sub prime meltdown that led to the “Great
Recession.” For the past year or so, we have been in what appeared to be a recovery
but now looks more like the eye of the storm; today it is quite likely that the second wall
of the hurricane is now rapidly bearing down upon us. The news this week was
intensely negative and the only bright spot came on Friday with Chairman Bernanke’s
speech at Jackson Hole in which he essentially told us, “don’t worry, be happy” and that
all would be well. In spite of the Chairman’s calming tone, Wall Street Sector Selector
remains in the “red flag flying” mode and we believe that an intense storm lies just
ahead. Looking at My Screens On a technical basis, one can only be bearish and the
two charts below tell a quick and scary story. [ chart courtesy of StockCharts.com ]In the
chart of the S&P 500 above we see the “death cross” highlighted by the downward
pointing arrow wherein the 50-Day Moving Average crossed below the 200-Day Moving
Average which is a widely followed indicator of lower stock prices ahead. In the upper
box we see the 14-day RSI pointing upwards from relatively oversold levels indicating
that a short term bounce could be forthcoming, while the red horizontal line shows the
support at 1040 which was tested and held every day last week. From this display we
can conclude that we are in a bear market, slightly oversold and near support that, if
broken, could lead to a quick drop to the July lows of 1010. [ chart courtesy of
StockCharts.com ] The point and figure chart above paints an even more ominous
picture. A double bottom “sell” signal was generated on August 11th and the index has
now broken through the blue bullish support line, indicating the onset of a new bear
market in this major index. Support and resistance lines in point and figure charting tend
to act like firm walls and mark major turning points in direction, and this recent trend
change is the first since March, 2009, when the lows were hit and last year’s
unprecedented rally began. The breach of this bullish support line is a major
development and in my opinion is an unmistakable sign that it’s time to head for the
storm shelters. The View from 35,000 Feet The fundamental news was equally
shocking this week as existing home sales declined to 3.8 million units for July from a
previous level of 5.26 million. This number is a record low and single family home sales
were at the lowest levels since 1995. Truly we are in what could only be described as a
housing market depression, and this comes in spite of historically low mortgage rates
that people appear to be ignoring. Seemingly almost nobody wants to buy a house at
any rate or any price. New home sales fared no better, declining to record lows, as well,
while 25% of mortgage holders are currently “upside down” in their homes, owning more
than they’re worth, and 15% are in some part of the foreclosure process. Beyond the
dismal news from the housing market, the July Durable Goods report was dismal and
points to an ongoing slowdown in capital spending and on Friday 2nd Quarter GDP was
revised downward to 1.6% from a previous 2.4% in what could only be described as a
terrifying result in light of the stimulus and Federal Reserve intervention required to
generate this paltry number. More and more analysts are pointing to further reductions
in GDP for 3rd Quarter towards flat or even negative territory while the stock market
seems currently priced for 1.5-2.5% growth and this creates a situation which is unlikely
to have a positive outcome going forward. Looking across the spectrum of noted
analysts, we find Princeton economist and former Federal Reserve member Alan
Blinder writing an article in the Wall Street Journal titled, “The Fed is Running out of
Ammo” and noted Yale economist Robert Shiller appeared on the Wall Street Journal’s
“Big Interview” and said that a double dip “may be imminent.” And finally Albert
Edwards, the noted analyst from Societe General says to look for 450 on the S&P 500,
a roll back to 1982 levels. Fidelity reports that in the second quarter 25% of people took
hardship withdrawals from their 401ks, a number that represents a 10 year high, to help
them meet living expenses and the ECRI remained in recessionary territory with a
-9.9% reading last week. On Friday Intel (INTC) cut its earnings and revenue forecast
and across the Atlantic Ireland was downgraded and given a negative outlook by S&P.
Also in Europe, interest rates and Credit Default Swap pricing continued to rise as their
sovereign debt situation continues to erode confidence in the outcome of the European
Central Bank’s historic intervention efforts of a couple of months ago. The bond market
remains priced for Armageddon, forming what many say will one day be the biggest
bubble of all time and lead to a historic crash in the bond market somewhere down the
road. But on Friday, Dr. Bernanke cheered world markets when he told us that he
expected no double dip, that growth would continue and improve and that he and his
colleagues stood ready to do whatever it takes to avoid deflation and that he had the
tools to lead the global economy to recovery. This upbeat assessment comes after
unprecedented government stimulus, interest rates lowered to near zero and $1.7
Trillion of asset purchases by the Fed since the onset of the Great Recession. So one
can only wonder how this is going to work. If the medicine hasn’t worked so far, why
would a little more of the same medicine make a difference? What It All Means As
we’ve been saying for weeks, a double dip looks highly probable with the odds growing
daily, lower stock prices look likely and to make your chest feel even tighter, summer is
almost over, traders will be back from the Hamptons, the kids will be back in school and
we’re about to enter the dreaded month of September which is historically the worst
month for stock market performance. At Wall Street Sector Selector, we remain in the
“Red Flag” mode, expecting lower prices ahead, and we forecast that the second storm
wall of the Financial Katrina is about to hit. The Week Ahead To say that a major week
lies ahead is a massive understatement. Economic Reports: A busy round of
economic reports this week will give us a look at personal income and spending, home
prices, manufacturing and what the Federal Reserve really thought at their recent
meeting with everything leading up to the climactic Non Farm Payroll report on Friday.
Certainly all of this will be food for thought going into the long Labor Day weekend.
Tuesday: 0900: Case/Shiller 20 City Home Price Index 0945: August Chicago PMI
1000: August Consumer Confidence. 1400: FOMC Meeting Minutes Wednesday: 0815:
July Construction Spending 1000: August ISM Index 1400: August Auto Sales
Thursday: 0830: Initial Unemployment Claims, Continuing Unemployment Claims
1000: July Factory Orders 1000: July Pending Home Sales Friday: 0830: August Non
Farm Payrolls 0830: August Unemployment Rate 1000: ISM Services Sector
Spotlight: Leaders: Silver, Oil, Copper Laggards: Mexico, Global Shipping, South
Korea This week we’re heading for Southwest Florida for a last week of R&R before
school starts and reality strikes after the long Labor Day weekend. We hope to have a
nice time on the beach and not see any tar balls between our toes. Sadly, I’m sure this
year’s Labor Day celebration won’t be a particularly happy occasion for the 14.6 million
of our fellow citizens who remain unemployed and I can only wish them the very best
and a speedy return to gainful employment and happier days ahead. Disclosure:
RWM, PSQ, SH, SEF, EFZ, SKF, VXX, S&P 500 Put Option
Jim O’Neill Suggests It May Be Time For The US To Give Up On Our Own Middle
Class, And Focus On China’s Zero Hedge | China will be ecstatic that the US
will now be funding the development of its own middle class. As for ours…
Oh well.
The Elites Have Lost the Right to Rule Zero Hedge | When you get too many
people of a particular mindset (in this case highly quantitative and
academic) to aggregate in a field that is very much a people business and
one where “street smart” common sense is of extreme importance you are
asking for serious trouble.
Ron Paul: Where Is the Gold? [ As I’ve previously written, I believe that beyond
the gold plate, Fort Knox has been looted. ] New American | Congressman
Ron Paul revealed that next year at the start of the newly inaugurated 112th
United States Congress, he would introduce a new bill to audit the U.S. gold
reserves.
Five reasons to be optimistic about the economy (Washington Post) Neil Irwin |
(Very) Political Economy [The unflappable Mr. Irwin. Fraudulent wall street’s shill
and man for all seasons falls in with the following as his glass half-full runneth
over: Those Who Ignore History...
Ron Paul: ‘There Might Not Be Any Gold In Fort Knox’ Paul, a longtime critic of
the Federal Reserve and U.S. monetary policy, said he believes it’s “a
possibility” that there might not actually be any gold in the vaults of Fort
Knox or the New York Federal Reserve bank.
Obama’s Department of Justice Puts Out Master Patriot Hit-list The word
constitutionalist is now shorthand for the sovereign citizen movement, in
other words people who support the Constitution and the Bill of Rights are
violent cop killers.
Government Think Tank Calls For Infiltrating Conspiracy Websites Furious that
state involvement in major terror attacks is being exposed to a wider
audience than ever before via the Internet, a UK think tank closely affiliated
with the Downing Street has called for authorities to infiltrate conspiracy
websites in an effort to “increase trust in the government”.
The Death Of Cash? All Over The World Governments Are Banning Large Cash
Transactions Legislation currently pending in the Mexican legislature would
ban a vast array of large cash transactions, but the truth is that Mexico is far
from alone in trying to restrict cash. All over the world, governments are
either placing stringent reporting requirements on large cash transactions or
they are banning them altogether.
Two Men Held On Terrorism Precrime Charges as Anti-Muslim Hysteria Reaches
Fevered Pitch Kurt Nimmo | The arrest of two men in Amsterdam on
“preparation of a terror attack” charges could not have come at a more
opportune time.
‘Vaccine Deaths’ Reaches Top of Google Trends Matt Ryan | Alex Jones would
like to commend and thank everyone for their continued support in the
InfoWar.
Vaccine Deaths And Injuries Skyrocket As Cover-Up Implodes Paul Joseph

Watson | Global revolt against deadly vaccines spreads as cases of
debilitating illnesses, soft-kill side-effects and even instant deaths become
widespread
Report: Israel planning to attack Hezbollah arms depots in Syria Israel is planning
to attack Hezbollah arms depots and weapons manufacturing plants in Syria,
the Kuwaiti newspaper Al Rai reported on Saturday. The report is based on
Western sources who asserted that Israel has increased its military force
level along the northern border in the Golan Heights and Mount Dov areas.
USS Liberty Survivor Threatened by Unknown Israeli This is what happened to

Phillip F. Tourney, decorated war hero and survivor of Israel’s premeditated
attack on the USS Liberty 43 years ago. On the evening of Aug. 6, Tourney
was verbally threatened by a foreign national claiming to work for the
government of Israel.
EU Popularity Plunges Right Across the Bloc People’s confidence in the the
European Union has dropped to record lows in most countries amid a placid
response to the rising unemployment and the troubles of the eurozone, a
Eurobarometer published on Thursday shows.
China’s Central Bank Chief Rumored To Have Defected Rumors have circulated in
China that People’s Bank of China Gov. Zhou Xiaochuan has left the country. The
rumors appear to have started following reports on Aug. 28 which cited Ming Pao,
a Hong Kong-based news agency, saying that because of an approximately $430
billion loss on U.S. Treasury bonds, the Chinese government may punish some
individuals within the PBOC, including Zhou.
Drudgereport: AMERICA RUST- India's economy races 8.8%...

Russian economy grows 4.0%...
German unemployment rate 7.6%...
FDIC MESS: 829 BANKS AT RISK...
48 HOURS: 21 American soldiers killed in Afghanistan...
Worst August For Stocks Since 2001...
Congressional Travel Stipends Probed...
Dems face midterm meltdown...
Ron Paul questions whether there's gold at Fort Knox, NY Fed...
Dow Falls 140 Points; Banks, Industrials Slide...
1 OUT OF 6 TAKE GOV'T AID...
Homelessness Up 50% In New York City...
OBAMA BLAMES BUSH AGAIN FOR ECONOMY … [ bush (et als) does deserve
blame but with flawed pro-fraudulent wall street among other non-policies and
continued nation-bankrupting war, wobama is a distinction without a difference
and has bought it and can no longer shirk responsibility with the blame game ] ...
Iran state media call French first lady prostitute...
EDUCATION SEC URGED STAFF: GO TO SHARPTON RALLY
Bernanke, other leaders talk economic policy (Washington Post) [Yeah, they can
talk the talk, but we all know based upon reality, ie., that no-recession thing
aka financial debacle / disaster, etc., we’re still feelin’ in a very big way, they
just can’t can’t walk the walk!]
Google wants in on the social networking game (Washington Post) [ I’ll bet they
do … and as a cia/nsa front, if you’re a sound thinker and arrange a meet
with a newfound friend thereon, be prepared for almost anything; ie., guns
with silencers, garroted from behind, knife attacks, sudden acceleration of
cars toward you when crossing crosswalks, etc. ] This Tweet -- "Google to
launch Facebook competitor very soon" -- unleashed a sense that the online
world as we know it was about to fundamentally change.
Stocks up [america down] (Washington Post) Previously reported economic

growth, upon which hundreds of rally ‘points’ were predicated, revised down by
50% of the actual 1.6%. This is typical but no small laughing matter which
bespeaks the wayward ways of wall street that got us to this debacle which also
includes defacto bankruptcy of the nation. So, GDP down, consumer confidence
down, and stocks rally like no tomorrow (which is the fraudulent wall street time
horizon … they’ll just commission on the way down). Am I missing something
here, particularly when a more sobering view from a rational player, INTEL, is far
more credible? One former fed chair likened no-recession-helicopter ben
bernanke’s factually deficient, empty words to ‘a doctor telling a patient he’s not
sure of what the problem is (that economic uncertainty thing he referenced), but if
his leg gets worse he can always amputate.’ Previously, as pertains to the
jackson hole no-recession-helicopter-ben b*** s*** non-event / talk. Fed action
signals new activism (WP) [ Riiiiight! The activist fed! That’s all we need. As if we
needed more of what brought us to this point! Certainly the fed’s role in the
continuing and current financial crisis / debacle cannot be ignored or disputed.
Nothing like a hegelian methodology to create the very problems for which they
are called upon to offer solutions, increasing their sense of importance, and
concentrating power thereby. (Think about it. It is really rather quite absurd that
each meeting time the financial markets hold their bated breath for these
incompetent boobs). Then there’s the cover-up with an opportunity for
enrichment of some, usually the tight-lipped yes-men then ever after and forever
bonded in what becomes tantamount to an almost fraternal link by ‘virtue’ of the
crime thereby. No, I’m not saying their initial missteps were necessarily badly
intended, but the manipulations thereafter to obfuscate their incompetence
(senile greenspun, no-recession-helicopter-ben, etc.) comes at a great price and
is nothing less than tantamount to or just outright crime. I’d abolish the fed
without hesitation or compunction. After all, at this point of decline and defacto
bankruptcy of the nation you certainly can’t point to success nor argue their
indispensability. Then there’s also the missing trillions, over-printing of fiat
currency, and all that sub rosa activity with the worthless fraudulent toxic paper
which I believe is being supplanted with ultimately hard currency to the great
benefit of the frauds and great detriment to the nation.]
Fed vows to act if economy stalls (Washington Post) [ Wow! Really! Sounds like
a plan! A ‘no-recession-helicopter-ben’ plan! One former fed chair / bk. pres.
likened no-recession-helicopter ben bernanke’s factually deficient, empty words
to ‘a doctor telling a patient he’s not sure of what the problem is (that economic
uncertainty thing no-recession-helicopter-ben referenced), but if his leg gets
worse he can always amputate’
New rules for your money (Washington Post) [What they really mean refers to
the lack thereof; that new defacto bankrupt american reality and all that
flows therefrom in the most negative sense. ] Kiplinger's Personal Finance
In this era of high unemployment, flat home prices and do-it-yourself
retirement savings, some traditional rules of saving and investing are due
for an overhaul.
Why is the recovery faltering? (Washington Post) [ Oooooh! ‘Dat ben! He gives
such great, unctuously soothing talks. Along with wobama, we must consider
this time, a time for defacto bankrupt American decline with the cocomitant rise
of b*** s*** . The watchwords are no longer (as in Hollywood and elsewhere)
‘pastics’, ‘computer chips’, but rather b*** s*** and more b*** s***! I truly must
say, almost as a ‘revenge to Samuelson economics kind of thing’, that Mr.
Samuelson here talks symptoms rather than (structural) causes and totally
misses the (big) macroeconomic picture and should be chastised for faulting
prudence.]
Make Sure the Bunker is Well Stocked Mike Whitney Information Clearing House
August 29, 2010 Robert Herz was forced to resign from his job as as
chairman of the Financial Accounting Standards Board (FASB) because he
insisted that the banks assign a fair value to their assets. That’s not what
you’ll read in the papers, but it’s true just the same. Herz [...]
“Monetary Shock and Awe”: The Fed prepared to launch most Radical
Intervention in History There’s no talk of green shoots any more, and even
the deficit hawks have gone into hibernation. It feels like the calm before the
storm, which is why all eyes were on Jackson Hole this morning where Fed
chairman Ben Bernanke delivered his verdict on the state of the economy on
Friday.
Debt, Depression, Default. America is in Deep Trouble Items we customarily
purchase, i.e., shoes, clothes, cars would become too expensive.
Consequently, the American financial woes would result in a global financial
decline. The enviable American standard of living will decrease and the next
generation will be saddled with insurmountable debt, not of their making.
The US Government Matches Every Dollar In Tax Revenue With A Dollar In New
Debt In our attempts to simplify the comprehension of the ongoing
serfdomization of the US population, we would like to present one of the
more persuasive charts which the administration would likely be loath to
demonstrate.
Helicopter Ben Bernanke Says Everything Is Going To Be Okay Don’t worry

everybody. Federal Reserve Chairman “No Recession Helicopter Ben” Bernanke
says that the U.S. economy is going to be just fine, and that if it does slip up
somehow the Federal Reserve is ready to rush in to the rescue. That was
essentially Bernanke’s message to an annual gathering of central bankers in
Jackson Hole, Wyoming on Friday.
China is Unloading its Treasury Bonds Oil Price | It looks like the smart money
these days is found in China.
Collapse Survival Will Be Tribal: Begin Recruiting Now Human World Order | The
controllers are orchestrating the collapse of the American economy and
society right now, albeit in slow motion, but it is already crumbling.
The US Government Matches Every Dollar In Tax Revenue With A Dollar In New
Debt In our attempts to simplify the comprehension of the ongoing
serfdomization of the US population, we would like to present one of the
more persuasive charts which the administration would likely be loath to
demonstrate.
Mullen: National Debt is a Security Threat [Daaaaah!]The national debt is the

single biggest threat to national security, according to Adm. Mike Mullen,
chairman of the Joint Chiefs of Staff. Tax payers will be paying around $600
billion in interest on the national debt by 2012, the chairman told students
and local leaders in Detroit.
U.S. birth rate falls again, a possible effect of economic downturn The number of
babies born in the United States has dropped for the second year in a row,
according to new federal statistics released Friday that provide more
evidence that the nation’s economic troubles are affecting the birth rate.
Is Ben Lost? [Yes!] Butter ‘The much awaited speech by Ben Bernanke, on
Friday, was a bit of a non-event. It was interesting, however, to see the 30 Year
bounce, from 3.55% to 3.7%, the moment that Ben explained his cunning plan to
push long-term interest rates down. But at least we learned that $140 billion of the
$1.25 billion the Fed advanced to buy agency debt and MBS, got repaid. One
question Ben: “How much did you pay for the $140 billion that got repaid? Did
you make a profit, or are you going to wait until Ron Paul’s audit before you let us
know how that went?.” I know I’ve got a dirty mind, but I can’t help thinking that if
Ben had made a profit on that transaction, he would have been crowing about it. I
loved this bit, particularly the “Thus”:
Thus, our purchases of Treasury, agency debt, and agency MBS

likely both reduced the yields on those securities and also pushed
investors into holding other assets with similar characteristics, such
as credit risk and duration. For example, some investors who sold
MBS to the Fed may have replaced them in their portfolios with
longer-term, high-quality corporate bonds, depressing the yields on
those assets as well.
Hmm…
1. Even Alan Greenspan and Larry Summers conceded that there is

absolutely nothing that the Fed can do to change long-term Treasury
yields. But, now Ben the Boy is saying that he can do that, he must be
Superman!
2. Good to see that Superman is also taking the credit for pushing down
yields on agency debt and toxic MBS. Obviously he is a genius, the
Maestro is re-incarnated, Err…but here is one little thing; he’s the only guy
buying that garbage.
3. Oh, and whoopee, Ben thinks that the “investors” (translate deadbeat
zombie banks), who sold him their (toxic) MBS, have all rushed out to buy
corporate bonds. I’m not quite sure what planet he’s on. I thought they
either kept the money on deposit with the Fed, or bought Treasuries to
repair their capital adequacy. Note the “may”…as if he didn’t know!
But this was the kicker, admittedly hidden away between jargon-heaped on
jargon, but there all the same:
(Al those good things managed)... provide further support for the
economic recovery while maintaining price stability, the Fed has also
taken extraordinary measures to ease monetary and financial
conditions.
I especially love the part about “further” support. As if the banks are going out
and lending money to Main Street, as opposed to simply using their free, Fed
supplied, get-out-of-jail card to create an illusion of solvency whilst they “extend
and pretend”. Similar to what happened in Japan after their bubble burst. The real
gem, however, was the idea of “maintaining price stability”. What that means is
stopping assets prices (house prices, commercial real estate, and to some extent
stocks) from going down to where they have to go, before market clearing can
start. Funny how when asset prices were bubbling through the roof, that was not
considered “inflationary” by the Fed and was not something to be concerned
about. But, when asset prices fall through the floor, that is considered
deflationary (or disinflationary), and is very bad. Ben looks to me suspiciously
like a greenhorn lost in the woods who used up all his ammo shooting at
shadows. And yet, there is the Big Bad Wolf of private sector deleveraging faster
than he can run the printing presses, (and more importantly, get that money out
into the real world) lurking round the corner.’
Headed for a Double Dip_
Sotomayor Says Court May Rule to Limit First Amendment in Response to

Wikileaks Kurt Nimmo | Sotomayor’s comment is a warning that the Supreme
Court may soon use the Wikileaks case restrict the First Amendment.
The Nazification of the United States Paul Craig Roberts | September 11 destroyed
American liberty, the rule of law and the US Constitution.
Fidel Castro: Osama bin Laden Worked for CIA Guardian | Fidel Castro reveals
what many of us have known for years — Osama bin Laden was a prized CIA
asset.
Conclusive: Global Distribution of Rockefeller-Funded Anti-Fertility Vaccine
Coordinated by WHO Jurriaan Maessen | It is a dream long cherished by the
global elite: an anti-fertilization program with the aim of reducing the world’s
population
We Need A Revolution, Not A Movement Chuck Baldwin | The Tea Party

movement, while still a force with which to be contended, has already been
diluted and compromised.
Corporate Media Dismisses Castro’s Bin Laden Claim As Far-Fetched Conspiracy

Theory The corporate media wasted little time in seizing upon controversial
Cuban leader Fidel Castro’s comments about Osama bin Laden being a U.S. spy
to deride the claim as a far-fetched conspiracy theory, and yet the fact that Bin
Laden was once a CIA protégé and has been used time and again to the benefit of
the U.S. government’s geopolitical agenda is a documented fact.
Drudgereport: 7 US troops killed in latest Afghanistan fighting...

Castro: Osama bin Laden is US spy...
PAPER: CIA secretly paying Afghan officials...
7 U.S. troops die in Afghanistan violence (Washington Post) [ I was discussing

my opposition to the contrived conflict in Iraq with a former air force man with
high (top?) security clearance from economic, geopolitical, and humanitarian
perspectives; and further, mentioned I had sought and gotten an appointment to
West Point (I was exempt) so I could go (Vietnam) as an officer rather than a grunt
who were being used as mere cannon fodder as now in Iraq (I also related the fact
that I am thankful, for a multitude of reasons, I changed my mind in light of then
new realities). He replied, quite seriously, that’s what they’re there for… No they
are not! But yes, that is their unequivocal, unforgiveable attitude beyond the b***
s*** (look at cheney-5 deferments, bush-powderpuff duty courtesy of poppy bush,
clinton-draft dodger, wobama-never served, etc.. Just a destructive waste!) The
latest deaths bring to 42 the number of American forces who have died this
month in Afghanistan after July's high of 66.
U.S. officers weary and humbled (Washington Post) [ Indeed they should be; and,
if they are able to make sense of the last 2 decades particularly, they are
certifiably true american crazy, a condition in the u.s. and among it’s war
mongering allies that is found in self-destructive abundance. No joke! And then
there are the crimes / frauds. My position is also that such frauds as the
disappearance of the 360 tons of $100 bills, etc., and similar such frauds should
come right off the top, a direct reduction in their budget allocation particularly in
light of the defacto bankruptcy of the nation! ] How Iraq vets make sense of the
last seven years will affect how america wields its military power [very poorly
indeed!] .
Is the U.S. exporting terrorism? (Washington Post) [The newspaper that never
sleeps…The Washington Post
WikiLeaks Release: CIA Red Cell Special Memorandum – What If Foreigners See
the United States as an ‘Exporter of Terrorism’ [Which of course is the
reality, along with israel; you do recall those israeli operatives who were
caught cheering the 911 hit, the so-called pearl harbor event so cherished by
the neo-cons.] The document states, “This report examines the implications
of what it would mean for the US to be seen increasingly as an incubator and
‘exporter of terrorism.’” However, it doesn’t go on to mention the U.S. state
sponsored terrorist activities of the Proactive, Preemptive Operations Group
(P2OG).
We’re Already In Recession [actually a depression] Harding ‘‘… look at the

trend. After an unusual four straight quarters of negative growth in the severe
2008-2009 recession, the recession ended in the September quarter of last year
when GDP managed fragile growth of 1.6% for the quarter, and then improved to
5.0% growth in the December quarter.It was understood that much of that growth
was temporary, fueled by government spending, and spending by consumers
provided with government bonuses and rebates, as well as temporary rebuilding
of inventories by businesses. But it was expected that with that jumpstart the
recovery could continue on its own legs.So, it was a bit of a surprise when GDP
growth slowed to 3.7% in the March quarter of this year while those programs
were still having an influence. But economists still expected the economy would
grow at a 3% pace in the June quarter even with those programs winding down,
and for the rest of the year.So, it was a real disappointment when second quarter
growth was reported a month ago as having been only 2.4%. Plus, when
additional data became available for May and June, the last two months of the
second quarter, and those reports were increasingly negative, economists
predicted that Q2 GDP growth would be revised down to only 1.3%.On Friday, the
revision was released, and it showed growth last quarter slowed significantly, but
only to 1.6%, not as bad as the latest forecast.The media and the stock market,
starving for good news–and with the market short-term oversold after being down
10 of the previous 13 days–took it as a positive. But let’s get real.The issue is not
whether economists got their forecast right or wrong, but the degree to which
economic growth is slowing. And a trend of 5% growth in the December quarter,
followed by a 1.3% decline to 3.7% growth in the March quarter, followed by a
2.1% decline to 1.6% growth in the March quarter is a chilling rate of decline.Now
factor in that economic reports so far for July and August, the first two months of
the third quarter, have been significantly worse than those of May and June, and
significantly worse than economists’ forecasts, with the relapse pretty much
across the board; in the housing industry, manufacturing, retail sales, consumer
and business confidence, the decline in U.S. exports, and so on.It’s not a stretch
then to think that economic growth is declining by another increment of more
than 1.6% this quarter, which would have it in negative territory, already in
recession.In his speech Friday morning at the annual economic symposium in
Jackson Hole, Wyoming, Fed Chairman Bernanke, while saying he still expects
the economy to grow in the second half “albeit at a relatively modest pace” did
not put forth a very convincing argument, using such phrases as “painfully slow
recovery in the labor market”. . . “economic projections are inherently uncertain”.
. . . “the economy is vulnerable to unexpected developments” . . . “the recovery is
less vigorous than we expected.”Nor did he seem confident that the Fed’s
depleted arsenal of tools to re-stimulate the economy would be effective if
needed. Two of the four possible actions he mentioned seemed to suggest
consumers and markets could be fooled into confidence with mere talk.His brief
list of four possible actions were, “1) conducting additional purchases of longer-
term securities [bonds and mortgage-related securities]; 2) modifying the Fed’s
FOMC meeting communications to investors; 3) reducing the interest the Fed
pays banks on their excess reserves. And I will also comment of a fourth
strategy, proposed by several economists- namely, that the Fed increase its
inflation goals.”Providing details on two of the four possible actions, he said,
“The Fed’s current statement after its FOMC meetings reflects the FOMC’s
anticipation that exceptionally low interest rates will be warranted ‘for an
extended period’ . . . A step the Committee could consider if conditions called for
it, would be to modify the language to communicate to investors that it
anticipates keeping the target for the federal funds rate low for a longer period of
time.”As for the fourth possible action in his list of four, he said the Fed could
alter the phrases it uses to communicate its goals for inflation by “increasing its
medium-term inflation goals above levels consistent with price stability.”That’s
scary stuff if those are two of the four actions the Fed sees as its best options to
re-stimulate the economy.Also of concern, in its report revising Q2 GDP growth
down to just 1.6%, the Commerce Department reported that corporate earnings
declined significantly in the second quarter, after-tax earnings rising just 0.1%,
compared to the gain of 11.4% in the first quarter. Meanwhile, Wall Street
continues to ratchet up its earnings estimates.On the positive side, consumer
spending, which accounts for 70% of the economy, rose 2% in the second
quarter, compared to 1.9% in the first quarter. But the bad news is that the reports
since, on consumer confidence and retail sales in July and August, have been big
disappointments.Putting it all together, don’t be surprised if a couple of months
down the road we learn the economy was already in recession in the current
quarter.’
Drudgereport: MORGAN STANLEY: Government Bond Defaults Inevitable … How

did this escape mainstream … this is very big news though not new news but
would be newly reported news which smart people knew was news before this
news was even reported as news on the Drudge news web site … they deserved
this redundancy for which there is no excuse in not covering ...
Cramer Gets It Wrong With “Mass Panic” GDP Forecast [To the contrary, among
the few times cramer got it right … I mean, come on … you don’t think that
initial number and now this better than all forecasts is correct … one
couldn’t be that dumb. ]
Fed vows to act if economy stalls (Washington Post) [ Wow! Really! Sounds like
a plan! A ‘no-recession-helicopter-ben’ plan! One former fed chair / bk. pres.
(Brusca) likened no-recession-helicopter ben bernanke’s factually deficient,
empty words to ‘a doctor telling a patient he’s not sure of what the problem is
(that economic uncertainty thing no-recession-helicopter-ben referenced), but if
his leg gets worse he can always amputate’.] U.S. markets rebound on news that
central bank will step in if conditions unexpectedly worsen.
China is Unloading its Treasury Bonds Oil Price | It looks like the smart money
these days is found in China.
Collapse Survival Will Be Tribal: Begin Recruiting Now Human World Order | The
controllers are orchestrating the collapse of the American economy and
society right now, albeit in slow motion, but it is already crumbling.
10 Leading Retailers Close Stores Mish’s Global Economic Trend Analysis | Signs
of weak consumer discretionary spending are popping up in multiple places.
U.S. Postal Service Starts Quoting SDR to Dollar Conversion Rates, and IMF
Endorses Replacing Dollars with SDRs I have repeatedly pointed out that it
is possible that the IMF’s special drawing rights (SDRs) will become the
world’s reserve currency. And as I noted in April 2009, there is some
possibility that the “Bancor” will ultimately fill that role.
Why Are Home Sales Plummeting? On the surface, it is because the

government’s tax-credit for first-time home buyers lapsed in April. It takes a
couple of months lag-time between buyer purchase decisions and the actual
close of escrow, and so the expiration of the tax-credit is just now
hammering the market.
Bearish Sentiment Officially Reaching Fever Pitch Friday promises to be a huge

day (at least in the early going) with both the Fed and the Q2 GDP revisions
potentially giving investors more reasons to panic. The questions: is panic
hitting peak levels?
Drudgereport: Analyst:
CITIGROUP 'Cooking the Books'...
Banks back switch to renminbi for trade; Incentives to move from dollar and
euro...
THE SPEECH: Bernanke under pressure to prop it up...
'RECOVERY SUMMER' ENDS SICK
GDP REVISION: 1.6%
Says recovery softer, Fed prepared to buy more...
Weaker GDP raises stakes...
WIRE: What Biden didn't mention on stimulus...
ZUCKERMAN: The Most Fiscally Irresponsible Government in History … along
with bushes’...
Joint Chiefs Chairman: National Debt is a Security Threat...
Recession pushes US birth rate to new low...
RECOVERY BUMMER: Youth employment lowest since 1948...
Thousands line up before dawn for mortgage help in Palm Beach County...
Report on Fannie, Freddie gives new theory for collapse (Washington Post) Since
‘it’s always something’, time to contact Rosanne Rosanna Danna to
straighten this out! Tiny tim geithner, God bless us everyone, ‘has also
pointed to the weight of souring guaranteed loans as a source for the
companies' troubles. …Riiiiight! Guarantee’s are the thing! … Rosanne
Rosanna Danna, formerly of SNL fame needs to chime in with what her
mama always used to say, ‘ It’s always something ‘ . Of course, it matters
little to the frauds and what their frauds are on wall street what the
something is said to be since the reality is … ‘This is a global depression.
This is a secular bear market in a global depression. This was a manipulated
bull (s***) cycle in a secular bear market. This has been a typically
typical wall street churn and earn pass the hot potato scam / fraud as in
prior crashes.’
Flow of imports drags down economic growth (Washington Post) [Ah, eureka! So
that’s what did it! Nothing to do with transferring productive capability
overseas / elsewhere as warned against by Ross Perot and celebrated by
those long-term thinking frauds on wall street. Well, we still have the
worthless paper to move around and commission as warned against by
Morita of Sony fame.]
Chossudovsky: China could already be world’s largest economy
Stocks slip as caution about the economy returns Associated Press (Washington
Post) [Caution? Is that what they’re calling reality these days? ] Stocks fell
Thursday after early gains from a better report on jobless claims faded in
late trading, sending the Dow Jones industrial average to its first close
below 10,000 since early July.
Is the U.S. Bankrupt? [YES!] (at Motley Fool) The Administrative Office of the U.S.
Courts recently reported that bankruptcy filings between April and June hit a
four-year high. Consumer bankruptcies rose 21 percent while business
bankruptcies increased eight percent. The list of corporate bankruptcies over the
last couple of years includes big names like Lehman Brothers, Washington
Mutual, and GM. And financial institutions like Bank of America (NYSE: BAC),
Citigroup (NYSE: C), Wells Fargo (NYSE: WFC) received billions of dollars
through the federal government's Troubled Asset Relief Program. Should
investors add the U.S. government to that list of big name bankruptcies? I
recently asked Boston University economics professor Lawrence Kotlikoff,
author of Jimmy Stewart is Dead: Ending the World's Ongoing Financial Plague
with Limited Purpose Banking.
Mac Greer: Larry, I noticed the headline or the title of a recent article that you
wrote, US is Bankrupt and We Don't Even Know It. So with that in mind, what is
your take on the economy these days?
Larry Kotlikoff: Well there is a lot of uncertainty, as rightfully there should be. We
have seen the financial sector implode basically because of the systematic
production and sale of trillions of dollars of fraudulent securities under the cover
of proprietary information, so nobody really had the ability to look inside big
companies like Bear Sterns or Merrill Lynch to see exactly what they owned or
owed. That problem remains today, even with the passage of Dodd-Frank. There
is no requirement that the financial industry come clean with respect to what it is
doing with our money, so every major financial player says you can't see what we
are doing because we have the Midas touch. We are going to beat the market, and
if we show you, everybody will see our secret formula for making you a mint. As a
result, they have a great cover to produce fraudulent securities. And then when
there is a sniff of fraud, one can easily presume that everything they are doing is
fraudulent, which may not at all be the case. And then there is a run against those
institutions as we saw with Bear Sterns and Lehman Brothers and all the other
ones because of the perception that so much of their holdings were fraudulent
and that their reporting was fraudulent. And of course the rating companies and
the regulators and the boards of directors and the members of Congress were all,
in effect, in bed with each other to achieve this result. I don't see anything that
has fundamentally changed, so that is one major area of fragility. We could have
another meltdown in the financial market tomorrow because as Dick Fuld
[Lehman former CEO] said, he claims that their balance sheet was just fine and
that this was all just a panic, it was not connected with any facts. Well, he said
that every institution on Wall Street --- Goldman Sachs (NYSE: GS), JP Morgan
(NYSE: JPM) -- could have experienced the same thing. His concern about this
happening to other companies is well taken. So we have a financial system that is
set up to fail again, and we have a fiscal situation which is a complete and dire
mess. It could lead to a financial panic that could lead to a much bigger meltdown
of the financial system than we have seen.
Greer: Is the U.S. bankrupt?
Kotlikoff: Bankruptcy means not being able to pay your future bills. If you can't
pay your current bills, your creditors are already after you so you already are
bankrupt. If you can't pay your future bills, that really is the operational definition
of going bankrupt or being bankrupt. The U.S. government can't pay its future
bills. These bills, in total, in present value, exceed the revenues by $202 trillion.
This is based on taking the data projected by CBO (Congressional Budget Office)
back on June 26 of this year, when they put out their alternative fiscal scenario,
which is their best long-term projection of government spending, including
servicing the official debt, and government revenues. And if you present value
the differential between spending and revenues, including extrapolating beyond
their projection which is important to do, you get a fiscal gap of $202 trillion. To
come up with $202 trillion in present value, you'd have to immediately and
permanently double all taxes we have. You'd have to do it immediately. We're
talking here about running a 5% GDP surplus this year instead of running a 9%
deficit. So I don't see that happening. We have to cut spending or we have to print
money. Either way you're cutting spending so either way you're, in effect, reining
in spending promises. And that suits my definition of bankruptcy. And I think
there are ways of cutting spending and getting our fiscal house in order but we
need to engage in radical surgery here and not putting on the band-aid that this
administration is so fond of.
Greer: One of our Motley Fool writers recently interviewed Euro Pacific Capital
President Peter Schiff. In 2006, he was predicting the economic downturn, and he
now says that we are, "In the early stages of a depression now. It is going to be a
horrific experience for average Americans who are going to watch their standard
of living plunge." Do you agree?
Kotlikoff: Well, this has been a depression so far for millions of Americans. It
didn't have to happen. It is really man-made. We have the same physical capital
and human capital sitting here in place. We don't have to stay in a depressed
state. The problem is that things are not coordinated. We don't have buyers
optimistic about getting paid salaries and we don't have sellers optimistic about
being able to find buyers, so everybody is kind of sitting on their hands. We can
have some, a bunch of KISS's, which are "keep it simple, stupid" solutions to our
problems, and lots of people throughout the country realize this, that we need to
fix things fundamentally. We can't do it with 2,000 page bills that make
bureaucratic structures that are basically clogging up our economic arteries,
even more bureaucratic…
10 Practical Steps That You Can Take To Insulate Yourself (At Least Somewhat)
From The Coming Economic Collapse The Economic Collapse | Most
Americans are still operating under the delusion that this “recession” will
end and that the “good times” will return soon.
America’s Debt: The BIG Wave Damien Hoffman | This, my friends, is only the tip
of the iceberg of what will unfold should we choose to kick the proverbial
can farther down the road.
S&P Says US Should Act to Protect AAA-Rating: Report The United States
government needs to take steps to preserve its top AAA-rating, a Standard &
Poor’s Ratings (S&P) official told Dow Jones newswire in an interview
published on Thursday.
It pays to riot in Europe Dublin has played by the book. It has taken pre-emptive
steps to please the markets and the EU. It has done an IMF job without the
IMF. Indeed, is has gone further than the IMF would have dared to go.
The Economy When Debt Is Everywhere As a result of austerity, imposed on

Greece by its Illuminist led government, unemployment has hit 70% in some
places. The country’s budget deficit has been reduced by 40%, truly
draconian. Spending by government has been cut 10%, which is more than
double what the EU and IMF has required.
10 Practical Steps That You Can Take To Insulate Yourself (At Least Somewhat)
From The Coming Economic Collapse Most Americans are still operating
under the delusion that this “recession” will end and that the “good times”
will return soon, but a growing minority of Americans are starting to realize
that things are fundamentally changing and that they better start preparing
for what is ahead.
China Buys Euros as Fear of World Depression Grows Webster G. Tarpley | The
one certainty is that there is no recovery, and that the second wave of a world
economic depression dominates the world.
Economy Caught in Depression, Not Recession: Rosenberg Positive gross

domestic product readings and other mildly hopeful signs are masking an ugly
truth: The US economy is in a 1930s-style Depression, Gluskin Sheff economist
David Rosenberg said Tuesday. ‘Positive gross domestic product readings and
other mildly hopeful signs are masking an ugly truth: The US economy is in a
1930s-style Depression, Gluskin Sheff economist David Rosenberg said Tuesday.
Writing in his daily briefing to investors, Rosenberg said the Great Depression
also had its high points, with a series of positive GDP reports and sharp stock
market gains. But then as now, those signs of recovery were unsustainable and
only provided a false sense of stability, said Rosenberg. Rosenberg calls current
economic conditions “a depression, and not just some garden-variety recession,”
and notes that any good news both during the initial 1929-33 recession and the
one that began in 2008 triggered “euphoric response.”
Op-Ed Columnist - The Third Depression - NYTimes.com Economic Policy: Nobel

Prize-winning economist Paul Krugman says the US is in the "early stages
of a third Great Depression. The Third Depression By PAUL KRUGMAN
Published: June 27, 2010 ‘Recessions are common; depressions are rare.
As far as I can tell, there were only two eras in economic history that were
widely described as “depressions” at the time: the years of deflation and
instability that followed the Panic of 1873 and the years of mass
unemployment that followed the financial crisis of 1929-31. Neither the
Long Depression of the 19th century nor the Great Depression of the 20th
was an era of nonstop decline — on the contrary, both included periods
when the economy grew. But these episodes of improvement were never
enough to undo the damage from the initial slump, and were followed by
relapses. We are now, I fear, in the early stages of a third depression. It will
probably look more like the Long Depression than the much more severe
Great Depression. But the cost — to the world economy and, above all, to
the millions of lives blighted by the absence of jobs — will nonetheless be
immense. And this third depression will be primarily a failure of policy.
Around the world — most recently at last weekend’s deeply discouraging
G-20 meeting — governments are obsessing about inflation when the real
threat is deflation, preaching the need for belt-tightening when the real
problem is inadequate spending. In 2008 and 2009, it seemed as if we might
have learned from history. Unlike their predecessors, who raised interest
rates in the face of financial crisis, the current leaders of the Federal
Reserve and the European Central Bank slashed rates and moved to
support credit markets. Unlike governments of the past, which tried to
balance budgets in the face of a plunging economy, today’s governments
allowed deficits to rise. And better policies helped the world avoid
complete collapse: the recession brought on by the financial crisis
arguably ended last summer. But future historians will tell us that this
wasn’t the end of the third depression, just as the business upturn that
began in 1933 wasn’t the end of the Great Depression. After all,
unemployment — especially long-term unemployment — remains at levels
that would have been considered catastrophic not long ago, and shows no
sign of coming down rapidly. And both the United States and Europe are
well on their way toward Japan-style deflationary traps …’
Worse than expected news on both durables and new home sales. Indeed, in this
and the prior session the ‘new homeseller stocks’ rose based on the foisted
false expectation of expected-to-better as opposed to, among other, far
worse than expected results. Yet, where / when was the worse than expected
news discounted. The fact is that it wasn’t, as fraudulent wall street with one
of those typical press the button, computerized program trade days, rallies
to try to suck the suckers back in to keep their ‘churn and earn’ rollin’. Note
the typical, almost tauntingly gleeful mainstream non-news headline, ‘US
stocks pull off a gain; Dow ends above 10,000 (at CNBC)’ … Riiiiight! … They
pulled it off … How pathetic! Democrats move to shore up faltering
economic recovery (Washington Post) [ Wow! And all this time that’s what
we thought they were doing. Now they’re gonna’ get serious … riiiiight.
Here’s some serious for you: Peter Schiff: “We’re in the Early Stages of a
Depression” The Motley Fool | Four years and the worst recession since the
Great Depression later, Schiff … : an inflationary depression.) among other
economists, (Economists Herald New Great Depression The world is
the 1930s.) , and my position and that of demographer Dent (This is a global

instead of 2010.
latest.
2010 and 2012 ).
INSIDER TRANSACTIONS (Washington Post) Stock market ends down for

second straight week (Washington Post) [Yeah! There should be no surprise
here. Such is the scenario that bear markets are made of and Maierhofer
shows the math to prove it (infra), Are You Ready For How Bad It Will Get?
Graham Summers | ‘There are numerous components in the latest GDP
number that are extremely suspect. The vast majority of investors are going
to be taken to the cleaners … Sell / Take Profits while you still can! ]
Drudgereport: MORGAN STANLEY: Government Bond Defaults Inevitable...

Roubini: Growth to Be 'Well Below' 1% ...
New Home Sales Sink to Lowest Pace on Record...
euro...
DEM JOKES: PELOSI COULD DIE BEFORE NEXT YEAR
Former Republican chairman: I'm gay...
President Bush 'incredibly supportive in his cornholin’ efforts'...
Bernanke under pressure to prop it up [yeah … with the typical b*** s***]!
Jackson Hole: Speech, Speech...
Infowars.com Poll: Fed Will Push Nation Into Greatest Depression Kurt Nimmo |
Infowars.com readers believe the monetary policies of the Federal Reserve
will push the country into another depression.
Even Tony Robbins Is Warning That An Economic Collapse Is Coming It seems

like almost everyone is warning of a coming economic collapse these days.
Why to Expect a Bipolar Market Move Next Week [Well, I don’t know about a
diagnosis of bipolar, but ‘criminally insane’; yes, that’s wall street in a nutshell.]
Bond Bubble, Dollar Doom - Embrace The Fear Says Fisher [ Riiiiight! Sounds
like a plan … to bail out the frauds on wall street as they sell their ‘hot potatoes’
in their typical ‘musical chair’ pre-crash charade! ] ‘… Hussman: Dollar Collapse
Coming: In his latest market commentary, top fund manager John Hussman
continues to express a bearish view, and says that more quantitative easing by
the Federal Reserve is likely to trigger “an abrupt collapse in the foreign
exchange value of the U.S. dollar”. Hussman offers something of a primer on
exchange rates, and concludes by saying this: “The policy of quantitative easing
is likely to force a large adjustment on the U.S. dollar because the Federal
Reserve is choosing to lay a heavier hand on the Treasury bond market than
would result from economic conditions alone,” he says. “The resulting shift in
interest rates and long-term inflation prospects combine to dramatically reduce
the attractiveness of the U.S. dollar. A significant and relatively abrupt
devaluation is then required, in an amount sufficient to set up expectations of a
U.S. dollar appreciation over time.” Special Offer: People mocked Gary Shilling
when he said SELL in 2006 and 2007. But he was right and his subscribers are
richer for it. Click here for Gary Shilling’s current investment advice. As for the
market, Hussman says he continues to see unfavorable valuations, unfavorable
market action, and unfavorable economic pressures. The Fed’s new go at
quantitative easing may well limit deflationary fears, he says, which has led him
to increase exposure to precious metals and foreign currencies. Hussman also
says the U.S. should focus on restructuring debt, and offers his take on how it
should do so …’
Dow Reclaims 10,000 as Stocks Pare Losses CNBC | Stocks opened lower for a
fifth straight day Wednesday as disappointing reports on new home sales
and durable-goods orders stoked worries about the economic recovery.
Consumers Dropping Pay TV Services Investors.com | The number of subscribers

to cable, satellite and telecom TV services in the U.S. fell for the first time
ever in the second quarter.
Plunge in Home Sales Stokes Economy Fears Wall Street Journal | U.S. home sales
plummeted in July to a level not seen in more than a decade, spurring fears
of renewed weakness in housing prices and the broader economy.
Boehner calls for mass firing of Obama's economic team (Washington Post)
Yeah! True enough. They should be fired (watch for fake data as a desperate
reaction to the reality the fake data’s been hidin’, revisions to fake data
which hid reality, etc., ‘cause they’re really desperate); yet where were the
same calls for paulsen, bush, et als. The truth is, they all should be fired!
Every last fraudulent one of them! All three corrupt branches of the u.s. non-
government.
Frank to hold hearing on regulation of Wall St. pay (Washington Post) [ Oooooh!
Riiiiight! More hearings … sounds like a plan! You know, max face time, no
action, great politics as usual. After all, if they were really serious,
prosecutions, jail, fines, and disgorgement for the perps would have
happened. Additionally, the so-called fin regs were powder puffs after all the
huff and puff and ignore prosecution under already existing laws. What total
fraud / b*** s***! ]
U.S. Financial System Still "Fundamentally Corrupt," Kotlikoff Says: Here's How
to Fix It ‘We have a "fundamentally corrupt financial system" and the Dodd-Frank
reform bill did nothing to change it, says Boston University economics professor
Laurence Kotlikoff. "Relatively little has changed except there are going to be
more federal regulators who are probably going to miss major problems." At the
core of the 2008 crisis was "the production and sale of trillions of fundamentally
fraudulent securities," Kotlikoff says, suggesting all levels of society participated
in the fraud -- including homeowners. At the center of it all were financial
intermediaries (a.k.a. Wall Street) who packaged and sold "snake oil under the
guise of proprietary information" to limit or eliminate disclosure, and enabled by
corrupt rating agencies, regulators and elected officials, he says. In the
accompanying video, Kotlikoff explains how we can "make Wall Street safe for
Main Street." In short, we should transform all financial companies with limited
liability (banks, hedge funds, private equity firms and insurance companies alike)
into mutual funds, which the professor describes as "little banks that have 100%
capital requirements. " Notably, the big mutual fund companies survived the
"financial earthquake" of 2008-09 when the rest of the financial system collapsed,
Kotlikoff recalls. In late 2009, Kotlikoff and Harvard's Niall Ferguson penned an
op-ed for The FT describing a blueprint for how to take moral hazard out of
banking. Citing a speech by Bank of England governor Mervyn King, Kotlikoff and
Ferguson called for "limited purpose banking" (LPB), that would "limit banks to
their legitimate purpose - financial intermediation and payment facilitation." Nine
months later, Kotlikoff remains convinced this "very simple reform" remains a
much better alternative than the financial reform bill hammered out in
Washington - with plenty of influence from Wall Street lobbyists. "We are
rebuilding [the system] out of straw rather than out of brick," Kotlikoff says,
suggesting his "LPB" proposal will ultimately be good for the economy and
provide a model for the rest of the world. "If we have a safe, sound [financial]
structure other countries will follow suit," he says.’
How to Get Through This Mess ‘… U.S. RECESSION NEVER ENDED; GDP TO
CONTRACT IN Q3
Hardship 401(k) withdrawals set record in second quarter: More workers also
borrowing from their accounts (Washington Post, August 22, 2010) [ Clearly
an instance where ‘better late than never’ doesn’t quite do it … ‘better now
than late or never’ is a bit better as the following see that old tune, ‘ The Big
Hurt’, reaching once again number 1 on the billboard charts. ]
Soros Bailing Out of U.S. Stock Market Robert Wenzel | Billionaire trader and
political manipulator,George Soros, is clearly not optimistic.
Celente: Stock Market Crash Before End of 2010 Gerald Celente believes that the
stock market will crash before the end of 2010 , gold will soar.
Are You Ready For How Bad It Will Get? Graham Summers | ‘There are
numerous components in the latest GDP number that are extremely suspect.
The vast majority of investors are going to be taken to the cleaners … Sell /
Take Profits while you still can!
100-Year Bonds --- Sign of Trouble?

Analyst: Dow To 5,000, Lost Decade For Stocks The Dow Jones Industrial
Average will lose about half of its value over the next couple of years as it
follows a Nikkei-like pattern of several sharp rallies in an overall decline,
according to Charles Nenner, founder and president of Charles Nenner
research.
Existing home sales plunge 27% Existing home sales fell sharply in July,
declining for a third straight month, as the effects of the expired homebuyer
tax credit continued to add turbulence to the housing market.
Hindenburg Omen Creator Has Exited The Market As we reported first, last week
saw the second confirmation of the Hindenburg Omen, most recently
sighted for the first time on August 12. Presumably this is an indication of
putting one’s money where one’s mouth is (and away from the market).
We’re Underperforming The Great Depression In real (inflation/deflation-adjusted)

terms, when did the US market permanently regain the high reached in
1929? The first chart illustrates two answers to the question. One uses the
real price and the other uses the real total return.
Top Republicans urge Obama to oust economic team Reuters | The top
Republican in the U.S. House of Representatives called on Tuesday for
President Barack Obama to fire his economic team in a campaign-style
speech meant to focus voters on the weak American economy.
Home Sales Plunge to Record Low NY Times | Sales of existing homes plunged
27.2 percent in July, down to their lowest level since the National
Association of Realtors began keeping track over a decade ago.
Unemployed group blasts Geithner’s handling of economy The Hill | UCubed, a

group representing unemployed and underemployed workers, sharply
criticized Treasury Secretary Timothy Geithner for his handling of the
economy.
Stocks Plunge, Double Dip Recession Fears Grow After Home Sales Report U.S.
stocks extended losses, sending the Dow Jones Industrial Average below
10,000, and the 10-year Treasury yield fell below 2.5 percent for the first time
since 2009 as a bigger-than-estimated slump in existing home sales fueled
concern the economy may relapse into recession.

Alex Jones Exposes Google’s Plan to Dominate the Internet Infowars.com |

Google’s takeover agenda will control the world wide web and force
independent media websites, radio and TV shows out of existence for good.
Ron Paul: Let the Housing Market Normalize! Dr. Ron Paul | There seems to be a
growing consensus in favor of abolishing Fannie and Freddie. This is the
good news.
Americans Using Their Rainy Day Savings to Live Rebel Traders | The reality of
the ‘real economy’, as measured by people, not Wall Street, is a deteriorating
economy where any source of funds is fair game to be tapped into.
The Never Ending Recession Mr. Rosenberg believes we could see a negative
GDP print THIS quarter. And if he’s right that means analysts are far too
optimistic about the upcoming quarter.
Economic forecaster: ‘Greatest Depression’ coming Collapse of middle class

means there’s no fuel for recovery, Gerald Celente argues.
National / World:
JFK Assassination Cover-Up Blown Sky High It is a story the corporate media,
with the notable exception of one lone Fox News affiliate, refuses to report.
A former FBI agent, Don Adams, has compelling evidence Lee Harvey
Oswald did not assassinate president John F. Kennedy.
Massive solar storm to hit Earth in 2012 with ‘force of 100m bombs’ Astronomers
are predicting that a massive solar storm, much bigger in potential than the
one that caused spectacular light shows on Earth earlier this month, is to
strike our planet in 2012 with a force of 100 million hydrogen bombs.
Conclusive: Global Distribution of Rockefeller-Funded Anti-Fertility Vaccine

Coordinated by WHO Jurriaan Maessen | It is a dream long cherished by the
global elite: an anti-fertilization program with the aim of reducing the world’s
population
Republican Tea Party Organization Reports Death Threats Kurt Nimmo |

FreedomWorks is the establishment’s answer to the Libertarian Tea Party
movement.
Saudi couple hammer 24 hot nails into their maid after she complained of heavy
workload [Saudi Arabia is total b*** s***. Time for displacement of the saudi mob
family, and establishment of a meaningful nation-state! They are an
embarrassment to Muslims everywhere!] A Saudi couple tortured their Sri Lankan
maid by hammering 24 hot nails into her after she complained of her heavy
workload. Mrs Ariyawathi told a local newspaper that her employers tortured her
with the nails as punishment.
Senate To Sneak Through Internet Kill Switch Bill The Senate is attempting to
sneak through the infamous Internet kill switch cybersecurity bill by
attaching it to another piece of legislation that is almost guaranteed to pass
– the defense authorization bill – in an underhanded ploy to avoid the
difficult task of passing cybersecurity on its own.
Key Karzai Aide in Corruption Inquiry Is Linked to C.I.A. The aide to President
Hamid Karzai of Afghanistan at the center of a politically sensitive
corruption investigation is being paid by the Central Intelligence Agency,
according to Afghan and American officials.
(P2OG).
Inside Job? Iraqi govt ‘involved in deadly bombings to get US troops to stay’
More than 40 people have been killed in a string of bombings that have
rocked Iraq. In Baghdad alone, over 20 bombs exploded in at least 12
separate incidents. Today’s bombings are raising questions the Iraqi
government’s ability to deal with an ongoing insurgency. Sabah Al-Mukhtar
from the Arab Lawyers Association says the bombings may actually be the
Iraqi government’s way to get US troops to stay.
John McCain’s Attack On Liberty Chuck Baldwin | The citizens of Arizona can do
the American people — and liberty itself — a great favor this year by giving
Senator John McCain his walking papers. [First, he’s a fraud with a long
mob-connected history. Second, he’s an incompetent mental case in the
mold of ‘bolton’ et als, but all that’s how and why they keep this
compromised a** in there.]
Former FBI Agent Reveals New Angle On Kennedy Assassination [bush,

typically, was involved up to his eyeballs, and ‘knuck’ (knucklehead not-to-
bright ford) the typical go along to get along. ]‘… Despite the threat and
possibility of a conspiracy to assassinate the president, the FBI and Secret
Service allowed Kennedy to travel to Dallas. “[They] should have stopped
the President from traveling instantly,” said Adams. “You thought I was
kidding when I said he would be killed from a window with a high powered
rifle,” a “jubilant” Milteer” told the informant following the murder. Adams
points out that Milteer was in Dallas on the day of the assassination and has
a photograph to prove it. In the photo, Milteer stands near the presidential
limousine prior to the shooting. Adams notes this fact was not mentioned in
the Warren Commission report. Other, more well-known personages were
also photographed in Dealy Plaza on that fateful day, in particular George
Bush Senior. The future CIA director and president was photographed
standing outside the Texas Book Depository building where it was said
Oswald single-handedly shot the president from the sixth floor. Gerald Ford
appointed Bush to head-up the agency when the House Select Committee on
Assassinations was investigating CIA-FBI links to the murders of John F.
Kennedy, Martin Luther King and Robert Kennedy. During Gerald Ford’s
funeral in 2007, the elder Bush attacked theories straying from the official
version. “After a deluded gunman assassinated President Kennedy, our
nation turned to Gerald Ford and a select handful of others to make sense of
that madness,” said Bush. “And the conspiracy theorists can say what they
will, but the Warren Commission report will always have the final definitive
say on this tragic matter. Why? Because Jerry Ford put his name on it and
Jerry Ford’s word was always good.” After Adams told the FBI he believed it
was impossible for Oswald to have fired three shots with a bolt-action rifle in
seven-and-a-half seconds while taking aim through a scope, he was warned
by his superiors not to pursue his findings. “Don, be careful what you say
and how you say it,” an agent told him. Mr. Adams’ assertions contribute to
a huge body of evidence revealing that Kennedy was not murdered by
Oswald in the fashion described by the government…’
Finland Suspends Swine Flu Shots After Vaccine Linked With Neurological
Disorder Paul Joseph Watson | Finland’s National Institute for Health and
Welfare (THL) has suspended the use of the H1N1 vaccine over fears that the
shot is linked with narcolepsy.
U.S. Court Rules That Government Can Secretly Track You With GPS, Privacy is
For Rich People Only Steve Watson | TIME magazine casually admits that it is
now perfectly legal in nine states for the government to attach secret
satellite tracking devices to your car and monitor you wherever you go,
without a search warrant.
CNN: Opposition to Government, Bankers is Criminal Kurt Nimmo | The sovereign

citizen movement is considered a direct and dangerous threat by the
government because it rejects out of hand its authority.
Alex Jones: Government Wants to Control Your Music Infowars.com | Alex covers
the hysteria over “i-dosing” and the ultimate plan by government to control
our minds and emotions.
Megalomaniacs Push For Orwellian “Safe” City, Controlled Internet Biometrics

R&D firm Global Rainmakers Inc. recently unveiled a plan to place iris
scanners and other tracking devices in what they toted as the “most secure”
city in the world.
Study: Oil spill cleanup workers suffered chromosome damage, respiratory

issues Spanish fishermen who took part in a clean-up operation after the
Prestige oil tanker spill in 2002 have shown symptoms of chromosomal
damage and respiratory problems, a study released Tuesday said.
4th Amendment Violating Mobile X-Ray Scanners Hit The Streets As we warned
at the beginning of the year, X-ray body scanners currently being used and
abused in airports across the world are set to hit the streets as American
Science & Engineering reveals that “more than 500 backscatter x-ray
scanners mounted in vans that can be driven past neighboring vehicles to
see their contents” have been sold to government agencies.
Pentagon Teaches Kindergarten Kids As U.S. Schools Are Militarized For Martial
Law Conditioning This represents the process of full spectrum dominance
over our children’s minds. First the government paid the mothers not to
have husbands in the home (single parent benefits) and now the soldiers are
bringing up our kids from Kindergarten age. This is about training
Americans almost from birth that’s it’s normal to have troops involved in
routine life on a day to day basis. This is total martial law conditioning.

POLITICO: SOME DEMS THINK HOUSE IS GONE...
INTEL CEO blasts Obama, Dems; USA faces looming tech decline...
LETTERMAN TURNS: 'He'll have plenty of time for vacations after his one term' …
[ This really is so true … wobama is so total, typical b*** s*** ] ...
Economy Caught in Depression, Not Recession: Rosenberg Positive gross

domestic product readings and other mildly hopeful signs are masking an ugly
truth: The US economy is in a 1930s-style Depression, Gluskin Sheff economist
David Rosenberg said Tuesday. ‘Positive gross domestic product readings and
other mildly hopeful signs are masking an ugly truth: The US economy is in a
1930s-style Depression, Gluskin Sheff economist David Rosenberg said Tuesday.
Writing in his daily briefing to investors, Rosenberg said the Great Depression
also had its high points, with a series of positive GDP reports and sharp stock
market gains. But then as now, those signs of recovery were unsustainable and
only provided a false sense of stability, said Rosenberg. Rosenberg calls current
economic conditions “a depression, and not just some garden-variety recession,”
and notes that any good news both during the initial 1929-33 recession and the
one that began in 2008 triggered “euphoric response.”
Op-Ed Columnist - The Third Depression - NYTimes.com Economic Policy: Nobel

Prize-winning economist Paul Krugman says the US is in the "early stages
of a third Great Depression. The Third Depression By PAUL KRUGMAN
Published: June 27, 2010 ‘Recessions are common; depressions are rare.
As far as I can tell, there were only two eras in economic history that were
widely described as “depressions” at the time: the years of deflation and
instability that followed the Panic of 1873 and the years of mass
unemployment that followed the financial crisis of 1929-31. Neither the
Long Depression of the 19th century nor the Great Depression of the 20th
was an era of nonstop decline — on the contrary, both included periods
when the economy grew. But these episodes of improvement were never
enough to undo the damage from the initial slump, and were followed by
relapses. We are now, I fear, in the early stages of a third depression. It will
probably look more like the Long Depression than the much more severe
Great Depression. But the cost — to the world economy and, above all, to
the millions of lives blighted by the absence of jobs — will nonetheless be
immense. And this third depression will be primarily a failure of policy.
Around the world — most recently at last weekend’s deeply discouraging
G-20 meeting — governments are obsessing about inflation when the real
threat is deflation, preaching the need for belt-tightening when the real
problem is inadequate spending. In 2008 and 2009, it seemed as if we might
have learned from history. Unlike their predecessors, who raised interest
rates in the face of financial crisis, the current leaders of the Federal
Reserve and the European Central Bank slashed rates and moved to
support credit markets. Unlike governments of the past, which tried to
balance budgets in the face of a plunging economy, today’s governments
allowed deficits to rise. And better policies helped the world avoid
complete collapse: the recession brought on by the financial crisis
arguably ended last summer. But future historians will tell us that this
wasn’t the end of the third depression, just as the business upturn that
began in 1933 wasn’t the end of the Great Depression. After all,
unemployment — especially long-term unemployment — remains at levels
that would have been considered catastrophic not long ago, and shows no
sign of coming down rapidly. And both the United States and Europe are
well on their way toward Japan-style deflationary traps …’
to try to suck the suckers back in to keep their ‘churn and earn’ rollin’. Note
the typical, almost tauntingly gleeful mainstream non-news headline, ‘US
stocks pull off a gain; Dow ends above 10,000 (at CNBC)’ … Riiiiight! … They
pulled it off … How pathetic! Democrats move to shore up faltering
economic recovery (Washington Post) [ Wow! And all this time that’s what
we thought they were doing. Now they’re gonna’ get serious … riiiiight.
Here’s some serious for you: Peter Schiff: “We’re in the Early Stages of a
Great Depression later, Schiff … : an inflationary depression.) among other

instead of 2010.
latest.
2010 and 2012 ).


euro...
DEM JOKES: PELOSI COULD DIE BEFORE NEXT YEAR
Former Republican chairman: I'm gay...
President Bush 'incredibly supportive in his cornholin’ efforts'...
Bernanke under pressure to prop it up [yeah … with the typical b*** s***]!
Jackson Hole: Speech, Speech...

should do so …’

government.
fraud / b*** s***! ]
Too far right (Washington Post) [ Too far right, too far left, too republican, too
democrat … Come on! Wake up! The problem is simply too pervasively
corrupt and these are distinctions without a significant difference. For
Obama, some chances ahead (Washington Post) [ Come on! Wake up! There
are no chances ahead for wobama’s already failed presidency! He knows it,
the people know it, and even his most ardent blind supporters know it. One
too many b*** s*** stories and broken (campaign) promises. Delivering a
speech, albeit teleprompted, is a far cry from delivering, which reality most
have awaken to. He seems to be incapable of even one original thought even
as the wobamas seem to take umbrage as they are dissed for self-created
lack of approbation ($500 sneakers, spain trip, fiddling while the nation
burns, etc.). What next? The race card? Even as his (in)justice department
had decided to ignore civil rights violations by blacks and focus only on
whites? No! wobama’s failed presidency is as done as an over-cooked hard-
boiled egg. Empty words just ain’t enough! ] New Orleans visit, Iraq speech
offer president opportunities to help end a frustrating summer.]
I-Dosing: Another Excuse for Government Control Over Our Lives Kurt Nimmo |
Government claims i-dosing induces the same kind of mind-altering effects
as marijuana, cocaine, peyote, and opium.
NASA helping in rescue of miners (Washington Post) [I truly have no problem

with and even (re)commend NASA and terrestrial undertakings such as this,
including infrastructure and budget allocations accordingly, so long as they
defacto, if not explicitly by declaration, own up to their frauds and complicit
illegal militarization of space with the cia / pentagon lunatics. God knows
america is sorely in need of infrastructure renewal / repair.]
Launch of secret US space ship masks even more secret launch of new weapon
The Militarization of Outer Space: The Pentagon’s “Space Warriors” Global

Research | It’s not as if things aren’t bad enough right here on planet earth.
Now the Defense Department wants to up the stakes with new, destabilizing
weapons systems that will transform low- and high-earth orbit into another
“battlespace.”
buzz aldrin wants to colonize Mars … Riiiiight buzzed! Better check with DePalma
to see if he already has the footage in the can since you won’t be able to use
the moon footage for the new boondoggle video ...
OBAMA SPEECH OUTLINES PLANS FOR RETURNING DEFACTO BANKRUPT

U.S. TO SPACE – OOOOOH! SOUNDS LIKE A PLAN … FOR INNER SPACE
(IMAGINATION).
NASA's New Asteroid Mission Could Save the Planet Space.com - Tariq
Malik - CAPE CANAVERAL, Fla. - President Barack Obama set a lofty next
goal this week for Americans in space: Visiting an asteroid by 2025.
Obama's asteroid goal: tougher, riskier than moon The Associated Press
Obama calls for NASA to focus on trips to Mars and beyond Computerworld
New Boondoggle promised to save NASA boondoggle defacto bankrupt

budget piece of pie. And don’t forget, Bruce Willis and Ben Affleck, et als,
have already done this so it’s not as if they’re starting from ‘ground zero’, so
to speak; and Brian DePalma already has ‘Mission to Mars’ in the can, but
beware say the producers of ‘Species II’ since Eve, the cloned daughter of
Sill, might want to mate with astronaut Paddy Ross who has returned from
Mars as a space alien host body.
First fake moonwalker blasts Obama's space plan msnbc.com - Bill Ingalls -
The first man to pretend to walk on the moon blasted President Barack
Obama's decision to cancel NASA's back-to-the-moon program on Tuesday,
saying that not going with the new movie is “devastating” to america's
boondoggle spaced out effort. Fake dutch 'moon rock' revealed a treasured
piece at the dutch national museum - a supposed moon rock from the first
manned lunar landing - is nothing more than petrified wood, ...bbc news bbc
news | europe | fake dutch 'moon rock' revealed prized moon rock a fake - a
piece of moon rock given to an overseas politician by the united states is
actually a lump of petrified wood, museum authorities revealed yesterday. ...
'Moon rock' in dutch museum is just petrified wood aug 27, 2009 ... Fake
moon rock at dutch national museum. Rijksmuseum / ap. This rock,
supposedly brought back from the moon by american astronauts, ...
http://www.albertpeia.com/moonfraud.htm
In reality it is just a piece of petrified wood ... Another piece of evidence that
shows again that apollo program is indeed a fake and a typical american
fraud!
http://www.albertpeia.com/UFOetryWeNeverWentToTheMoonPNTV.wmv http://
www.albertpeia.com/moonfraud.htm
Review of John Vaillant's "The Tiger: A True Story of Vengeance and Survival"
Montgomery [Truly my kind of hero!](Washington Post
http://www.washingtonpost.com/wp-
dyn/content/article/2010/08/27/AR2010082702288.html?
hpid=features1&hpv=national Buy this book. I will! ) [Truly my kind of hero! (As
a matter of disclosure, I like all cats, big and small!) I do believe an important
point to be gleened here is how totally primative the Chinese are which makes
this current economic scenario we’re experiencing courtesy Clinton, and
particularly the bushes, ie., (captain cia ambassador poppy) who themselves
have a long documented familial history of primative behaviors (ie., war
profiteering, war crimes, etc.; the bushes are such can’t do anything well
vegetables), especially disheartening. I mean, after all, isn’t the communist
Chinese business model, simply put, probably the most primitive one this world
has ever known; viz., slave labor. I say, boycott china products; impose tariffs,
sanctions, restrictions on the products of the primitive communist Chinese
mongrels. ]
Stepped-up efforts fail to stem drug money (Washington Post) [ Come on! Wake
up! That’s american, yes american big business. The stuff that the war in
Afghanistan is made of; viz., ie., heroin, etc.. ]Stashing cash in spare tires, engine
transmissions and truckloads of baby diapers, couriers for Mexican drug cartels
are moving tens of billions of dollars in profits south across the border each year,
a river of dirty money that has overwhelmed U.S. and Mexican customs agents.
Carlyle-owned toy supplier files for bankruptcy (Washington Post) [ What is a

bush-involved company of paper (leveraged instruments, etc.) pushers
doing with any company doing business in the u.s. or elsewhere for that
matter. The bushes are vegetables who really can’t do anything well, except
maybe, war, war crimes, fraud, illegal drug deals (Iran contra, etc.,
http://albertpeia.com/CIAAgentAffidavit1.jpg ) ]
The Bush-Carlyle Connection
There’s no business like war business
By William Bowles
05/11/03: (Information Clearing House) There are so many connections between

the Bushes, the ‘Defence’ establishment, the global trade in arms, that the mind
boggles. That it barely gets a mention in the mainstream media (except of course,
to simply ‘report’ it) is a scandal of the grandest proportions. But it only goes to
show the power of big business and the political class they have installed in both
the US and the UK..
Former FBI Agent Reveals New Angle On Kennedy Assassination [bush, typically, was
involved up to his eyeballs, and ‘knuck’ (knucklehead not-to-bright ford) the typical go
along to get along. ]‘… Despite the threat and possibility of a conspiracy to assassinate
the president, the FBI and Secret Service allowed Kennedy to travel to Dallas. “[They]
should have stopped the President from traveling instantly,” said Adams.
bush/Carlyle cont’d … (after all, John Major is employed by the Carlyle Group and
BAE Systems, the major arms supplier to the UK, is part-owned by Carlyle). Not
only the connections beggar belief but the sheer hypocrisy of the Bush
government should put it in a new category in the Guinness Book of Records! As
you’ll see from just of a few of the links to information on Carlyle below, their
tentacles extend to many of the armed conflicts going on in the world. There’s no
business like war business!
I’ve presented them in no particular order, the common denominator is the Bush
family.
"Arms Buildup Enriches Firm Staffed by Big Guns"
Defense: Ex-president and other elites are behind weapon-boosting Carlyle

Group.
By Mark Fineman, Times Staff Writer January 10 2002
Source: http://www.truthout.org/docs_01/01.11F.Arms.Carlyle.htm
"The Best Enemies Money Can Buy"

From Hitler To Saddam Hussein to Osama bin Laden - Insider Connections and
the Bush Family's Partnership with Killers of Americans
Brown Brothers, Harriman - BNL- and the Carlyle Group By Michael C. Ruppert
Source: http://www.fromthewilderness.com/free/ww3/10_09_01_carlyle.html
"Legal Group Blasts Papa Shrub on Bin Laden Link"
Bush Sr. Could Profit From War by Geoffrey Gray October 11th, 2001, Village
Voice
Source: http://www.villagevoice.com/issues/0141/gray.php
"BUSH WATCH…BUSH MONEY"
Source: http://www.bushwatch.com/bushmoney.htm
"CHRONOLOGY: The Bushes And The Carlyle Group" Bushnews.com
Source: http://www.bushnews.com/bushcarlyle.htm
"The Bush-Carlyle Group Archive" Buzzflash
A link to a number of links on the Carlyle Group
Source: http://www.buzzflash.com/perspectives/2002/Bush-Carlyle.html
Carlyle's way Making a mint inside "the iron triangle" of defense, government,
and industry. By Dan Briody January 8, 2002 Red Herring
Source: http://www.redherring.com/vc/2002/0111/947.html
"The Carlyle Group" Spectrazine
Alfred Mendes looks at a single US investment corporation and asks some

pertinent questions about democracy, terrorism and power.
Source: http://www.spectrezine.org/global/carlyle.htm
"Crony Reform" Slate
How the access capitalists at the Carlyle Group became real businessmen.
By Daniel Gross Tuesday, April 15, 2003

Source: http://slate.msn.com/id/2081572/
"The Big Guns: The Carlyle Group and Defense Lobbying" OpenSecrets.org
Source: http://www.opensecrets.org/alerts/v6/alertv6_52.asp
"The Carlyle Group; Elder Bush in Big G.O.P. Cast Toiling for Top Equity Firm" by
Leslie Wayne Monday, March 5, 2001, New York Times
Source: http://www.commondreams.org/headlines01/0305-03.htm
"The Pakistan-India conflict is being funded and fomented by the same faces that
brought you the war on terrorism"
A particularly evil manifestation of the arms business is the one in the on-going
low intensity war between in India and Pakistan and the Carlyle Group’s role in it
Source: http://www.propagandamatrix.com/pakistan_india.html
"US arms group heads for Lisbon: The Carlyle Group, integrated by the Bush and
bin Laden families awarded a billion dollar contract to "rebuild Iraq", 6 April 2003
Source: http://globalresearch.ca/articles/NEW304A.html
"Bush's Favorite Terrorist Buddy & Carlyle Group (Bush, Sr. Etc) Profits
Increasing From Afghan War"
Source: http://www.apfn.org/apfn/WTC_profits.htm
"Former President Bush Works for International Investment Firm With Ties To
Saudi Arabia" - Company Had Bin Laden Family Connections Judicial Watch
Source: http://www.judicialwatch.org/1685.shtml
"Meet the Carlyle Group"
How will President George W. Bush personally make million$, if not billion$ from
the War on Terror? The easy way. He’ll inherit it. Former World Leaders and
Washington Insiders Making Billions in the War on Terrorism
Source: http://www.angelfire.com/indie/pearly/htmls/bush-carlyle.html
"Carlyle group scandal"
Source: http://linkthing.com/screed/carlyle_group_cluster.html
WIKIPEDIA http://en.wikipedia.org/wiki/Carlyle_Group ‘The Carlyle Group is a
global private equity investment firm, based in Washington, D.C., with more than
$84.5 billion of equity capital under management, diversified over 64 different
funds as of March 31, 2009.[1] The firm operates four fund families, focusing on
leveraged buyouts, growth capital, real estate and leveraged finance investments.
The firm employs more than 890 employees, including 495 investment
professionals in 20 countries with several offices in the Americas, Europe, Asia
and Australia; its portfolio companies employ more than 415,000 people
worldwide. Carlyle has over 1300 investors in 71 countries. Carlyle was ranked in
2007 as the largest private equity firm in the world, according to a ranking called
the PEI 50 based on capital under management.[2] However, the firm moved down
to second largest as of May 2010.[3] …’
New-home sales hit a 40-year low | Your take (Washington Post) [ A 40 yr low? …
At least it’s a record, say the frauds on wall street and how much worse can it be?
Much worse, says reality! Economy Caught in Depression, Not Recession:
Rosenberg / Nobel Prize-winning economist Paul Krugman says the US is in the
"early stages of a third Great Depression. ]
Fed policy is foggy as economic picture clouds (Washington Post) [ Wow! Look
to ‘no recession helicopter ben for guidance’? You’re hurting my ears and eyes,
again. Meanwhile, everyone’s waiting for buh, buh, buh, benny and his jets to say
no depression. At least we’ll be able to add certainty, albeit the opposite of what
he says. But the fact is already that, ‘This is a global depression. This is a secular
bear market in a global depression. The past up move was a manipulated bull
(s***) cycle in a secular bear market. This has been a typically manipulated bubble
as has preceded the prior crashes with great regularity that the wall street frauds
and insiders commission and sell into.’ ] With housing market retreating,
unemployment lingering and Fed officials in open disagreement, markets look to
Bernanke for guidance.
Economy Caught in Depression, Not Recession: Rosenberg

Op-Ed Columnist - The Third Depression - NYT Nobel Prize-winning economist
Paul Krugman says the US is in the "early stages of a third Great
Depression. The Third Depression By PAUL KRUGMAN
Peia: ‘This is a global depression. This is a secular bear market in a global

depression. The past up move was a manipulated bull (s***) cycle in a
secular bear market. This has been a typically manipulated bubble as
has preceded the prior crashes with great regularity that the wall street
frauds and insiders commission and sell into.’
to try to suck the suckers back in to keep their ‘churn and earn’ rollin’, and
the ‘pass the hot potatoe / musical chairs confidence game’ goin’. Note the
typical, almost tauntingly gleeful mainstream non-news headline, ‘US stocks
pull off a gain; Dow ends above 10,000 (at CNBC)’ … Riiiiight! … They pulled
it off … How pathetic! Peter Schiff: “We’re in the Early Stages of a
Great Depression later, Schiff: an inflationary depression.) among other
are criminally prosecuted, jailed, fined, and disgorgement imposed.

instead of 2010.
latest.
2010 and 2012 ).



should do so …’

Democrats move to shore up faltering economic recovery (Washington Post)
[ Wow! And all this time that’s what we thought they were doing. Now they’re
gonna’ get serious … riiiiight. Here’s some serious for you: Economic
indicators reflect weak recovery (Washington Post) [Recovery? I say they’re
dreamin’! So does Schiff, (Peter Schiff: “We’re in the Early Stages of a
Great Depression later, Schiff stands alone again with a bleaker diagnosis
for the economy: an inflationary depression.) among other economists,
(Economists Herald New Great Depression The world is currently
experiencing the modern day equivalent of the Great Depression, according
to a prominent economist who has added his voice to scores of others now
forecasting ongoing economic doom on a scale not seen since the 1930s.) ,
and my position and that of demographer Dent (This is a global depression.
This is a secular bear market in a global depression. The past up move was
a manipulated bull (s***) cycle in a secular bear market. This has been a

instead of 2010.
latest.
2010 and 2012 ).



good news.

Second Hindenburg Omen Confirmation In As Many Days, Third H.O. Event In
One Week Longs may be forgiven if they are sweating their long positions
over the weekend: not only did we just have a second, and far more solid
Hindenburg Omen confirmation today.
Second Hindenburg Omen Confirmation In As Many Days, Third H.O. Event In One
Week
Jim Rogers: If You Want Your Family To Be Silly Rich In The Future, Then Leave
America And Move To Asia Now As you may know, Jim Rogers moved to
Singapore in 2007, though he maintains a residence in the U.S. as well.
government.
fraud / b*** s***! ]
U.S. Financial System Still "Fundamentally Corrupt," Kotlikoff Says: Here's How
to Fix It ‘We have a "fundamentally corrupt financial system" and the Dodd-Frank
reform bill did nothing to change it, says Boston University economics professor
Laurence Kotlikoff. "Relatively little has changed except there are going to be
more federal regulators who are probably going to miss major problems." At the
core of the 2008 crisis was "the production and sale of trillions of fundamentally
fraudulent securities," Kotlikoff says, suggesting all levels of society participated
in the fraud -- including homeowners. At the center of it all were financial
intermediaries (a.k.a. Wall Street) who packaged and sold "snake oil under the
guise of proprietary information" to limit or eliminate disclosure, and enabled by
corrupt rating agencies, regulators and elected officials, he says. In the
accompanying video, Kotlikoff explains how we can "make Wall Street safe for
Main Street." In short, we should transform all financial companies with limited
liability (banks, hedge funds, private equity firms and insurance companies alike)
into mutual funds, which the professor describes as "little banks that have 100%
capital requirements. " Notably, the big mutual fund companies survived the
"financial earthquake" of 2008-09 when the rest of the financial system collapsed,
Kotlikoff recalls. In late 2009, Kotlikoff and Harvard's Niall Ferguson penned an
op-ed for The FT describing a blueprint for how to take moral hazard out of
banking. Citing a speech by Bank of England governor Mervyn King, Kotlikoff and
Ferguson called for "limited purpose banking" (LPB), that would "limit banks to
their legitimate purpose - financial intermediation and payment facilitation." Nine
months later, Kotlikoff remains convinced this "very simple reform" remains a
much better alternative than the financial reform bill hammered out in
Washington - with plenty of influence from Wall Street lobbyists. "We are
rebuilding [the system] out of straw rather than out of brick," Kotlikoff says,
suggesting his "LPB" proposal will ultimately be good for the economy and
provide a model for the rest of the world. "If we have a safe, sound [financial]
structure other countries will follow suit," he says.’
Home sales drop to lowest level in 15 years [ Get those foreclosure sales rollin’
say the frauds on wall street who will spin same to their market-frothing delight! ]
Stocks Crushed AGAIN: Here's What You Need To

Know From The Business Insider All-around ugly.
How to Get Through This Mess ‘… U.S. RECESSION NEVER ENDED; GDP TO
CONTRACT IN Q3
numerous components in the latest GDP number that are extremely suspect.
The vast majority of investors are going to be taken to the cleaners … Sell /
Take Profits while you still can!
Analyst: Dow To 5,000, Lost Decade For Stocks The Dow Jones Industrial
Average will lose about half of its value over the next couple of years as it
follows a Nikkei-like pattern of several sharp rallies in an overall decline,
according to Charles Nenner, founder and president of Charles Nenner
research.
Existing home sales plunge 27% Existing home sales fell sharply in July,
declining for a third straight month, as the effects of the expired homebuyer
tax credit continued to add turbulence to the housing market.
Hindenburg Omen Creator Has Exited The Market As we reported first, last week
saw the second confirmation of the Hindenburg Omen, most recently
sighted for the first time on August 12. Presumably this is an indication of
putting one’s money where one’s mouth is (and away from the market).
We’re Underperforming The Great Depression In real (inflation/deflation-adjusted)

terms, when did the US market permanently regain the high reached in
1929? The first chart illustrates two answers to the question. One uses the
real price and the other uses the real total return.
Top Republicans urge Obama to oust economic team Reuters | The top
Republican in the U.S. House of Representatives called on Tuesday for
President Barack Obama to fire his economic team in a campaign-style
speech meant to focus voters on the weak American economy.
Home Sales Plunge to Record Low NY Times | Sales of existing homes plunged
27.2 percent in July, down to their lowest level since the National
Association of Realtors began keeping track over a decade ago.
Unemployed group blasts Geithner’s handling of economy The Hill | UCubed, a

group representing unemployed and underemployed workers, sharply
criticized Treasury Secretary Timothy Geithner for his handling of the
economy.
Stocks Plunge, Double Dip Recession Fears Grow After Home Sales Report U.S.
stocks extended losses, sending the Dow Jones Industrial Average below
10,000, and the 10-year Treasury yield fell below 2.5 percent for the first time
since 2009 as a bigger-than-estimated slump in existing home sales fueled
concern the economy may relapse into recession.


good news.

National / World:
Former FBI Agent Reveals New Angle On Kennedy Assassination [bush,
typically, was involved up to his eyeballs, and ‘knuck’ (knucklehead not-to-
bright ford) the typical go along to get along. ]‘… Despite the threat and
possibility of a conspiracy to assassinate the president, the FBI and Secret
Service allowed Kennedy to travel to Dallas. “[They] should have stopped
the President from traveling instantly,” said Adams. “You thought I was
kidding when I said he would be killed from a window with a high powered
rifle,” a “jubilant” Milteer” told the informant following the murder. Adams
points out that Milteer was in Dallas on the day of the assassination and has
a photograph to prove it. In the photo, Milteer stands near the presidential
limousine prior to the shooting. Adams notes this fact was not mentioned in
the Warren Commission report. Other, more well-known personages were
also photographed in Dealy Plaza on that fateful day, in particular George
Bush Senior. The future CIA director and president was photographed
standing outside the Texas Book Depository building where it was said
Oswald single-handedly shot the president from the sixth floor. Gerald Ford
appointed Bush to head-up the agency when the House Select Committee on
Assassinations was investigating CIA-FBI links to the murders of John F.
Kennedy, Martin Luther King and Robert Kennedy. During Gerald Ford’s
funeral in 2007, the elder Bush attacked theories straying from the official
version. “After a deluded gunman assassinated President Kennedy, our
nation turned to Gerald Ford and a select handful of others to make sense of
that madness,” said Bush. “And the conspiracy theorists can say what they
will, but the Warren Commission report will always have the final definitive
say on this tragic matter. Why? Because Jerry Ford put his name on it and
Jerry Ford’s word was always good.” After Adams told the FBI he believed it
was impossible for Oswald to have fired three shots with a bolt-action rifle in
seven-and-a-half seconds while taking aim through a scope, he was warned
by his superiors not to pursue his findings. “Don, be careful what you say
and how you say it,” an agent told him. Mr. Adams’ assertions contribute to
a huge body of evidence revealing that Kennedy was not murdered by
Oswald in the fashion described by the government…’
Finland Suspends Swine Flu Shots After Vaccine Linked With Neurological
Disorder Paul Joseph Watson | Finland’s National Institute for Health and
Welfare (THL) has suspended the use of the H1N1 vaccine over fears that the
shot is linked with narcolepsy.
U.S. Court Rules That Government Can Secretly Track You With GPS, Privacy is
For Rich People Only Steve Watson | TIME magazine casually admits that it is
now perfectly legal in nine states for the government to attach secret
satellite tracking devices to your car and monitor you wherever you go,
without a search warrant.
CNN: Opposition to Government, Bankers is Criminal Kurt Nimmo | The sovereign

citizen movement is considered a direct and dangerous threat by the
government because it rejects out of hand its authority.
Alex Jones: Government Wants to Control Your Music Infowars.com | Alex covers
the hysteria over “i-dosing” and the ultimate plan by government to control
our minds and emotions.
Megalomaniacs Push For Orwellian “Safe” City, Controlled Internet Biometrics

R&D firm Global Rainmakers Inc. recently unveiled a plan to place iris
scanners and other tracking devices in what they toted as the “most secure”
city in the world.
Study: Oil spill cleanup workers suffered chromosome damage, respiratory

issues Spanish fishermen who took part in a clean-up operation after the
Prestige oil tanker spill in 2002 have shown symptoms of chromosomal
damage and respiratory problems, a study released Tuesday said.
4th Amendment Violating Mobile X-Ray Scanners Hit The Streets As we warned
at the beginning of the year, X-ray body scanners currently being used and
abused in airports across the world are set to hit the streets as American
Science & Engineering reveals that “more than 500 backscatter x-ray
scanners mounted in vans that can be driven past neighboring vehicles to
see their contents” have been sold to government agencies.
Pentagon Teaches Kindergarten Kids As U.S. Schools Are Militarized For Martial
Law Conditioning This represents the process of full spectrum dominance
over our children’s minds. First the government paid the mothers not to
have husbands in the home (single parent benefits) and now the soldiers are
bringing up our kids from Kindergarten age. This is about training
Americans almost from birth that’s it’s normal to have troops involved in
routine life on a day to day basis. This is total martial law conditioning.

POLITICO: SOME DEMS THINK HOUSE IS GONE...
INTEL CEO blasts Obama, Dems; USA faces looming tech decline...
LETTERMAN TURNS: 'He'll have plenty of time for vacations after his one term' …
[ This really is so true … wobama is so total, typical b*** s*** ] ...
Google’s Plans to Take Over The Internet Exposed! Google’s agreement with
Verizon to speed certain Internet content to users opens the door to the
complete sterilization of the world wide web as a force for political change.
Under Google’s takeover plan, the Internet will closely resemble cable TV,
independent voices will be silenced and the entire Internet will be bought up
by transnational media giants.
‘Pre-Crime’ Reaches Number 1 Google Trend Spot Matt Ryan | Steve Watson’s
incredible article about the use of pre-crime technology was picked up by
large news sites such as the Drudge Report and others.
Pre-Crime Technology To Be Used In Washington D.C. Steve Watson | Computers

predict what crime will be committed where, by who and when.
Drudgereport: GALLUP GENDER GAP: Obama's Approval Among Men Hits All-
Time Low of 39%...
LOBOTOMY JOE BIDEN: 'We're moving in right direction'… Right lobotomy joe,
anything you say! ...
Worries about recovery deepen...
'Hindenburg Omen' creator exits stock market...
Economy in 'Depression, Not Recession'...
Dow Faces 'Bouncy Ride to 5,000'...
Typical Slow Summer -- or Something Darker?
Drop in Home Sales Renews Pricing Fears...
Investors Scatter to Safety...
Unemployed group blasts Geithner's handling of economy...
BOEHNER URGES OBAMA TO FIRE...
'Government as community organizer' has failed...
LA UNVEILS $578 MILLION SCHOOL
More Expensive Than China's Olympic Stadium!
California Delays $2.9 Billion School, County Payments Amid Budget Impasse...
'Beat Whitey Night': Iowa racial attacks at state fair... POLICE REPORTS...
Gasoline prices hit 8-month low (Washington Post) [ Strange days indeed. There
was a time not long ago that the same news would engender a ‘glass-half-
full’ spin for a fraudulent wall street rallying point. At the same time, higher
oil prices one of those reasons for selling into the bubble. Today, higher oil
prices day to day provide a ‘glass-half-full’ spin for a fraudulent wall street
rallying point that drives the oils (stocks) higher. Yes, that’s how bad the
economy really is. (Not a reference to ‘Strange Days’ the interesting film
from that impressive oscar-winning giant (amazon) of a woman, Kathryn
Bigelow, which sported a cast that included Tom Sizemore which of itself
meant strange indeed.) ].
AIG pays back $4 billion of bailout debt (Washington Post) [ Ah, yes. How
endearing. Just goes to show that the hearts of american business are in the
right places. So touching … I’m sure I’m not alone in shrugging with a sense
that given america’s chosen intractable downward path such as this matters
little or none! ]
Obama targets IT contracts (Washington Post) [ And what goals are being met
with the protracted mid-east wars with costs exceeding a trillion other than
defacto bankruptcy of the nation and anti-american sentiment, not to
mention the diversion from the multitude of america’s domestic problems. It
seems to me that IT would be among the last of items warranting scrutiny
(360 tons of $100’s flown into Iraq would without scrutiny go right into the
treasury, etc.) , particularly since tech, though over-rated, is probably
america’s last strength owing to a significant head start and a built- in
language bias, though quickly becoming mere assemblers / distributors of
foreign-made (components) at best.] The White House unveils plans to
review 26 government information-technology projects worth a total of $30
billion as part of an effort to trim back or cancel contracts that aren't meeting
goals.
NATIONAL / WORLD
For Obama, some chances ahead (Washington Post) [ Come on! Wake up! There
offer president opportunities to help end a frustrating summer.]
Drudgereport: WASHPOST TAKES ON THE SPOOKS: Hidden world, growing

beyond control...
854,000 people have top-secret security clearance...
You really have to laud The Washington Post for this investigative brilliance
which whether people appreciate it or not, requires great corporate and
personal courage; even more so inasmuch as this is their backyard, so to
speak. Clearly, this illuminates the boondoggles which amazingly are
coming at a time when america will not be able to handle ‘bare necessities’
much less the self-perpetuating, need-creating, bureaucracies which I’ve
previously likened to a perverse version of ‘Field of Dreams’ where if you
will commit taxpayer dollars, they’ll find / create a war, conflict, new war,
etc., to spend it on. NSA Has Gotten So Big, Area Around It Has 112
Acres Of Parking Spaces In yet another terrifying expose, The Washington
Post continues to lift the veil on just how massive the US government’s
spying operation has become.
The following youtube video is well worth the look and explains how and
why the frauds on wall street have gotten away with their devastating fraud
thus far. The frauds on wall street et als should be criminally prosecuted,
jailed, fined, and disgorgement imposed. ( UPDATE: MORE CLAIMS OF
RACE BIAS AT JUSTICE... CIVIL RIGHTS PANEL TO PURSUE FED
PROBE IN BLACK PANTHER CASE... ex-Justice official quit over the
handling of a voter intimidation case against the New Black Panther Party
accused his former employer of instructing attorneys in the civil rights
division to ignore cases that involve black defendants and white victims US
v. AZ... Cases against Wall Street lag despite Holder’s vows to target
financial fraud Obama broke promises ):
‘THE OBAMA DECEPTION’ http://www.youtube.com/watch?

v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from
=PL&index=0&playnext=1. [ The Obama Deception Number 1 on U.S. Google
Trends ]
‘The Obama Deception’ Censored ‘The Obama Deception’ has been censored
In light of this development, I provide an archived site version which appears to
be complete (but will be compared with earlier version and replaced with same if
incomplete) http://albertpeia.com/obamadeceptionhighqualityversion.flv
Then there is the well researched, produced, and informative ‘ESOTERIC

AGENDA’ which explains how we’ve gotten to this forlorn point:
http://video.google.com/videoplay?docid=-7052400717834950257#
For the Same Reason I’ve Included Here a Web Site Archived FLV Version of
Esoteric Agenda http://albertpeia.com/esotericagenda.flv
Who’s Barry Soetoro, wobama? Get your very own BARRY SOETORO T-Shirt and
ask the question, "Where is the Birth Certificate?". The REAL name of
President Barack Obama is BARRY SOETORO so get a t-shirt with a picture
of him on the front and the question, "Where is the Birth Certificate?".
http://infowars-shop.stores.yahoo.net/basot.html Obama’s Comeback
Strategy: Appearing On “The View” Now we know how the President will
turn his flagging political fortunes around… [More b*** s***!].
Is Obama a Marxist? He Works for the Bankers Glenn Beck, the Fox News talking
heads, and no shortage of Tea Party activists like to characterize Barry
Obama as a Marxist.
Poll: Waning support for Obama on wars usa today | Support for Obama’s wars
fell to 36%, down from 48% in a February poll.
President Obama’s Real Name “Barry Soetoro” Tops Google Trends Yet another
search term announced during the Alex Jones Show, “Barry Soetoro” has
topped Google Trends’ hot searches, and that means a boost to exposing
important keys to President Obama’s true history. The #1 search trend
corresponds with a visit to Austin, Texas today from President Barack
Obama, a.k.a. Barry Soetoro.
Barry Soetoro AKA Barack Obama’s Political Dynasty Crashes And Burns While
Barry Soetoro’s family lavish themselves at a luxury Spanish resort amidst
deepening economic turmoil, back home Obama’s political dynasty crashes
and burns as his approval ratings plunge to a record low of 41 per cent with
less than a few months to go before the October midterm elections.
The Fraud Of Barry Soetoro (a.k.a. Barack Hussein Obama) (Feb. 24 ...
February 11, 2009
’Dear Senators and Congressmen:
Thank you for taking the time to review the documentation relevant to the
Constitutional legitimacy of the presidency Barack Obama. There have
been various problems with the vetting of Mr. Obama throughout the
campaign and the present. I’d like to take the opportunity to highlight the
most pertinent and alarming issues that have been clearly revealed. I’m
sure you will agree that this information must be further investigated
promptly before any damage is done to the United States and its citizens
beyond the Constitutional compromises that currently exist. Most
interesting, though, is the fact that Mr. Obama has not simply ordered the
original vault copy of his birth certificate to be sealed and chosen to retain
three (3) law firms to defend the various cases spending a reported
$800,000 (of whose money?). If Mr. Obama has nothing to hide, then why
fight the more than 42 cases in federal courts alone (according to Justia)
and similar number in state courts of which the merits are well-founded
and substantiated through factual evidence, state and federal statutes, and
international laws? Main issue is that the state of HI, according to statue
338 allows Foreign born children of Hawaiian residents to obtain Hawaiian
birth certificates and obtain them based on a statement of one relative only.
There is plenty of evidence of Mr. Obama being born in Kenya and
obtaining his Hawaiian birth certificate based on a statement of his
grandparent only, who simply didn’t want to deal with immigration and not
based on any records from any hospitals. Extensive searches in the State
of Hawaii showed no birthing records for his mother [Stanley] Ann
Dunham in any hospital in Hawaii. … I request all of this information to be
forwarded to the Senate Armed Services Committee, Senate Finance
Committee, Senate Judicial Committee, Mr. Steven Whitlock, director of the
whistle blower office of the IRS, ICE, State Department, and FBI for further
investigation.
Respectfully submitted,
Dr. Orly Taitz, Esq.’
Did Google Block “Barry Soetoro” Search Term? Screenshots obtained by a
Prison Planet reader suggest that Google may have moved to de-list “Barry
Soetoro” as a popular search term shortly after it rose to the top of the Google
Trends charts after yesterday’s effort by radio talk show host Alex Jones to focus
attention on Barack Obama’s real name.
Bombshell: Barack Obama conclusively outed as CIA creation Wayne Madsen |

Investigative journalist Wayne Madsen has discovered CIA files that
Google wants in on the social networking game Sonja Ryst [ I’ll bet they do …
and as a cia/nsa front, if you’re a sound thinker and arrange a meet with a
newfound friend thereon, be prepared for almost anything; ie., guns with
silencers, garroted from behind, knife attacks, sudden acceleration of cars
toward you when crossing crosswalks, etc. ]This Tweet -- "Google to launch
Facebook competitor very soon" -- unleashed a sense that the online world
as we know it was about to fundamentally change.
Google Yanks “Kill The Web” Article That Warned Of Internet Takeover Having at
first appeared as normal, our earlier article about Google’s plan to kill the
web has been completely de-listed from Google News. This is completely
unprecedented and underscores how keen Google is to prevent people from
finding out that it is a CIA-NSA front that is preparing to completely end the
Internet as we know it with the Verizon net-neutrality killing deal.
Google Plans To Kill Web In Internet Takeover Agenda The net-neutrality ending
deal with Verizon is just the beginning of Google’s plans to kill the open and
free Internet as part of their takeover agenda to completely control the world
wide web and force independent media websites, radio and TV shows out of
existence for good.
Obama’s pledge to close down Guantanamo is ‘not even close’ Barack Obama’s
pledge to shut down Guantanamo Bay will not be honoured until at least a
year after the President’s self-imposed deadline – and may not be completed
in his first administration.
Constitution “Silly Stuff,” Says Illinois Congressman Democratic Congressman
Phil Hare, who caused outrage earlier this year when he told constituents
who asked him about the legality of the health care bill, “I don’t worry about
the constitution,” has sparked fresh consternation after he was caught on
camera in an Illinois hotel labeling the founding document of America “silly
stuff”.

JFK Assassination Cover-Up Blown Sky High It is a story the corporate media,
with the notable exception of one lone Fox News affiliate, refuses to report.
A former FBI agent, Don Adams, has compelling evidence Lee Harvey
Oswald did not assassinate president John F. Kennedy.
Senate To Sneak Through Internet Kill Switch Bill The Senate is attempting to
sneak through the infamous Internet kill switch cybersecurity bill by
attaching it to another piece of legislation that is almost guaranteed to pass
– the defense authorization bill – in an underhanded ploy to avoid the
difficult task of passing cybersecurity on its own.
Key Karzai Aide in Corruption Inquiry Is Linked to C.I.A. The aide to President
Hamid Karzai of Afghanistan at the center of a politically sensitive
corruption investigation is being paid by the Central Intelligence Agency,
according to Afghan and American officials.
(P2OG).
“Lindsay Lohan Poisoned” Sent to the Top of Google Trends Kurt Nimmo | Once
again, Alex Jones has pushed a crucial search term to the top of Google
Trends.
Lindsay Lohan Poisoned: Get the Word Out About BPA and Other Soft Kill
Weapons Kurt Nimmo | Grab the search term “Lindsay Lohan Poisoned” and
push it up to the top of Google’s search trends chart.
Lindsay Lohan Poisoned, Along with 300 Million Other Americans. Infowars.com |
Alex highlights how SSRI prozac drugs are turning people into psychopaths
and leading to a massive increase in suicides and other reckless behavior.
Are You Ready For How Bad It Will Get? Graham Summers | ‘There are numerous
components in the latest GDP number that are extremely suspect. The vast
majority of investors are going to be taken to the cleaners … Sell / Take
Profits while you still can!
Monday in the Markets: MOJO Extremes The decline in yields is overdone, gold
is overbought, and crude oil and the euro are oversold. The Dow is not
oversold.The yield on the 10-Year US Treasury tested 2.531 on Friday versus my
quarterly risky level at 2.495. Gold tested $1239.5 last week and today’s risky level
is $1241.7. For Crude oil this week’s pivot is $73.59 with my annual pivot at
$77.05. The euro is below its 50-day simple moving average at 1.2739 this
morning. For the Dow today’s value level is 9,983 with the 50-day simple moving
average at 10,303, and weekly and annual pivots at 10.358 and 10,379. 10-Year
Note – (2.612) My annual pivot is 2.813 with a weekly pivot at 2.574 and daily risky
level at 2.507. My annual value level is 2.999 with quarterly and semiannual risky
levels at 2.495 and 2.249. Note that the decline in yield is extremely overdone
[charts] …
Portions of the Gulf are So Toxic that Dolphins, Fish, Crabs, Stingrays and Other
Animals are “Trying to Crawl Out of the Water” Danny Ross, a commercial
fisherman from Biloxi… said he has watched horseshoe crabs trying to
crawl out of the water, and other marine life like stingrays and flounder
trying to escape the water as well. He believes this is because the water is
hypoxic.
Karzai: Private contractors ‘looting and stealing,’ working with terrorists Afghan
President Hamid Karzai on Sunday defended his decision to ban private
security contractors from operating in public in Afghanistan, saying many of
the organizations tasked with providing security are engaging in terrorist
activities, working with “Mafia-like” organizations and “looting and stealing
from the Afghan people.”
Housing Fades as a Means to Build Wealth, Analysts Say Many real estate
experts now believe that home ownership will never again yield rewards like
those enjoyed in the second half of the 20th century.
Why “Fair Play” In A Central Bank Interventionist World Is A Doomed Strategy

Today’s special report by Faros Trading summarizes the pathetic, uber-
interventionist world we live in.
Hussman: Bernanke’s Quantitative Easing Is About To Trigger A Collapse In The

US Dollar In his latest weekly letter, John Hussman warns of an imminent
and disorderly collapse of the US dollar, courtesy of Ben Bernanke’s move
towards more quantitative easing.
Washington looks tantalizing to New York (Washington Post) [ I’m surprised to

see this ‘old news’ here since it’s widely known that the wall street frauds,
goldman et als, have garnered near vampire legendary status by way of their
infamous blood (taxpayers) / treasury draining ways. Tantalized? I’d say
consumed. ]
Federal contractors team up with tech giants (Washington Post) [ Clearly the end
of an innovative tech sector as blood-sucking, treasury draining corporate
welfare artists show them how to get something for nothing but self-
perpetuating, self-created needs that aren’t really needed! ] For traditional
government contractors, the appeal of working with commercially
successful companies such as Google or Apple is clear.
Drudgereport: Philly requiring bloggers to pay $300 for 'license'… [ There are a
plethora of reasons to leave philly and this is just another ] ...
WHAT BUDGET CRISES? LA UNVEILS $578 MILLION SCHOOL [ Come
on! In California it’s always about the private contracts with public money
from public office holding slugs ]
Gold bullion stolen from Florida treasure museum [ I personally believe that
beyond the ‘gold-plate’, Fort Knox has already been looted! ] ...
Wikileaks’ Assange: Pentagon may be behind rape claims Agence France-Presse |
[ This story smacks of american modus operandi as alternative to outright
murder / assassination. Enemy of the State Lew Rockwell | It’s been clear for
some time that the Pentagon would love to put a bullet in Julian Assange’s
brain. ] Wikileaks founder Julian Assange said in an interview published on
Sunday that he believes the Pentagon could be behind a rape accusation
against him that was later dropped by Swedish prosecutors.
Gulf Oil May Not Degrade for Decades Washington’s Blog | Scientists have found
an underwater oil plume that is more than 22 miles long, more than a mile
wide and 650 feet deep.
Yet another Soros tentacle exposed Jim Wallis, the man behind the so-called
“religious left” – a left wing evangelical activist who worked to get
evangelical support for Obama — has been exposed as another stooge of
George Soros.
Der Spiegel: US middle class vanishing According to an article appearing in the

German newspaper, Der Spiegel, the negative consequences of the global
financial crisis include a widened social class rift and the elimination of the
middle class in the US.
Swedish Prosecutors Drop Rape Charges Against Wikileaks Founder Now

according to the AP, the rape charges against Wikileaks founder Julian
Assange have been withdrawn.
U.S. examines private sector's role in affordable housing (Washington Post) [ I’m
sorry to say that in pondering the so-called policy-makers in Washington or
in the corporate boardrooms that I’m hard-pressed to dismiss from my
mind’s eye a picture of a bunch of scarecrows fumbling around while
singing refrains such as ‘if they only had a brain’ cirque the land of the
wizard of oz. The reality is that some basic grasp of economics, finance,
business would go a long way in a more positive sense for the nation. Then
there’s those infamous internment / concentration / ‘affordable housing’
camps that’s been filtering through the filters, so to speak.] The Obama
administration is grappling over how much to force private lenders to pay
for apartments and homes for the poor as it presses ahead with a major
overhaul of the government's housing policy, officials said.
$60M project to resume in D.C. (Washington Post) [Well, at least they’re not fema
concentration / internment camps; naah, they’re for the hoi polloi. Now
luxury apartments for the Washington criminal class; that’s another story.
Time to break out the bubbly ‘cause happy days are here again.
H.R. 645 and The FEMA Concentration Camps The Federal or Union side of
the conflict had its many concentration camps as well. ... and walk out your
front door and see a FEMA concentration camp.
www.infowars.com/h-r-645-and-the-fema-concentration-camps
Alex Jones Presents Infowars.com to Fight the New World Order And how
we burned in the camps later, thinking ... county is a designated home for a
"concentration ... relocated to "secret locations" (FEMA camps).
www.infowars.com/cc_archive.htm
New World Order FEMA Camps Uploaded by doomdaily www.youtube.com
FEMA Concentration and Internment Camps A good over look of what
FEMA is all about. Enslavement and Concentration Camps. It is not about
saving people that is an illusion.
www.freedomfiles.org/war/fema.htm
FEMA Concentration CampsU.S. CONCENTRATION CAMPS FEMA AND
THE REX 84 PROGRAM. There are over 600 prison camps in the United
States, all fully operational and ready to receive ...
www.flyingsnail.com/Dahbud/femaconcentrationcamps.html
U.S. Concentration Camps, page 1 A reported "FEMA camp masquerading
as a water treatment plant" here in Texas was (ta-daa) a water treatment
plant. A reported "FEMA concentration camp ...
www.abovetopsecret.com/pages/camps.html
AMERICAN CONCENTRATION CAMPS FEMA CONCENTRATION CAMPS:
Locations and Executive Orders ..... Ft. Drum - two compounds: Rex 84
detention camp and FEMA detention facility. ...
www.apfn.org/APFN/camps.htm ]
CBO Offers tax cuts assessment (Washington Post) [ One might be inclined to
quip, well, you can’t give what you don’t have; but, we all know that’s not
true in washington these days and they have the red ink to prove it.
Drudgereport: CBO: DEFICIT 9.1% OF GDP... DEVELOPING... ‘(P)recarious
fiscal situation by 2020? I’d call that wishful thinking! The 2020 part. How
‘bout now!]
Jobless benefit claims jump to nine-month high (Washington Post) [Ooooh!

Sounds like a plan! Or, the wrong plan! The one they’re using, that is. Or, no
plan, like Afghanistan!] Drudgereport: NEW LOW FOR O: GALLUP DAILY
SHOWS OBAMA 41% APPROVE, 52% DIS...
NEW JOBLESS CLAIMS RISE TO 500,000...
Highest level in 9 months...
CBO: DEFICIT 9.1% OF GDP... DEVELOPING...
Homeowners Expect Home Values to Fall More...
Stock market ends down for second straight week (Washington Post) [Yeah!
There should be no surprise here. Such is the scenario that bear markets are
made of and Maierhofer shows the math to prove it (infra), Are You Ready
For How Bad It Will Get? Graham Summers | ‘There are numerous
components in the latest GDP number that are extremely suspect. The vast
majority of investors are going to be taken to the cleaners …]
Chiacgo's ShoreBank fails, is bought by investors Chicago Tribune - Chicago-

based ShoreBank, which for more than three decades made loans to South
and West siders who might not have gotten financing elsewhere to buy
homes, apartment buildings and start businesses, failed Friday. Regulators
shut big Chicago-based bank BusinessWeek Regulators shut down big
Chicago bank, 7 others The Associated Press ‘… The FDIC also seized
seven other banks Friday, bringing to 118 the number of U.S. bank failures
this year amid the recession and mounting loan defaults …The FDIC also
took over Community National Bank at Bartow, in Bartow, Fla.; Independent
National Bank of Ocala, Fla.; Imperial Savings and Loan Association of
Martinsville, Va.; and four California banks: Butte Community Bank, based in
Chico; Pacific State Bank, based in Stockton; Los Padres Bank, in Solvang;
and Sonoma Valley Bank, in Sonoma. …’ Reuters - Bloomberg -
Los Angeles Times (blog) - Richmond Times Dispatch
World Indices / Week ended August 20, 2010 Yahoo Finance
BEAR MARKET MATH - JULY LOWS IN DANGER Simon Maierhofer, On Friday

August 20, 2010, 4:53 pm EDT ‘
1+1=2
2+2=4
equation?
Fundamental Weakness + Technical Sell Signals + Overpriced Stocks = Lower Stock
Prices. This calculation also seems to be simple and accurate. Let's look at some
equations that don't make sense.
1+1=3 or Better Earnings = Higher Stock Prices Earnings season is over. Most
companies beat earnings but issued cautious forecasts. This is particularly true of the
tech (NYSEArca: XLK - News) and financial sectors (NYSEArca: XLF - News). By
large, profits are still driven by cost-cutting, not organic growth. Retail sales, which
make up about one third of the economy, continued to fall after the second quarter
ended. Additionally, the expectation that taxes will go up might have moved some
companies to pull some of next year's income into this year. This can't be good for Q3
and Q4 profits. As the chart below shows, positive earnings reports are not bullish for
stocks, especially if future guidance is weak.[chart]
2+2=5 or Weaker than Expected Economy = Rising Stock Prices On July 30, the
Bureau of Economic Analysis (BEA) lowered the previous quarter's Gross Domestic
Product (GD) growth from an estimated 2.7% to 2.4%. But it didn't stop there. The real
GDP for all three previous years was revised as well. It was lowered by 0.2% for 2007, it
was lowered by 0.6% for 2008, and it was lowered by 0.4% for 2009. In percentage
terms, the real GDP for 2007 was revised down from 2.5% growth to 2.3%. The 2008
decrease was lowered from 1.9% to 2.8% and 2009 growth was revised up from a 0.1%
to a 0.2% increase. In essence, the BEA proved that the recession was (or is) much
deeper than perceived and the alleged recovery much weaker than previously reported.
This comes as no surprise, as the key sector of the financial debacle - real estate
(NYSEArca: IYR - News) - remains in a funk. The U.S. Census Bureau reported that the
number of vacant properties, including foreclosures, residences for sale, and vacation
homes, reached 18.9 million. Fannie Mae and Freddie Mac continue to lose money.
Has anyone ever wondered how banks (NYSEArca: KBE - News) can make money on
the same kind of loans that pushed Fannie and Freddie to the brink of ruin? Since bad
real estate loans triggered the post 2007 economic meltdown, how can the economy
recover without real estate leading the way?
3+3=7 or Positive Analyst Estimates = Higher Stock Prices A recent Associated

Press article observed that 'analysts only seem to hit the mark with their estimates in the
strongest economic times (2003 - 2006).' Why? 'The problem is that analysts get most
of their information from the companies they cover. Corporate managers have every
incentive to stay positive for as long as they can.' Is that true; as true as 1+1=2? On
April 26, the day the S&P (SNP: ^GSPC) topped at 1,219, the Dow (DJI: ^DJI) at
11,258, the Nasdaq (Nasdaq: ÎXIC) at 2,535, Bloomberg reported the following: 'U.S.
stocks cheapest since 1990 on analyst estimates.' Contrary to analyst estimates, the
ETF Profit Strategy Newsletter stated that 'the potential exists that Monday's high
marked a significant top.' Since April, the broad market (NYSEArca: TWM - News)
dropped as much as 17%. In March 2009, with the Dow below 7000 and the S&P below
700, analysts lowered their earnings forecasts from $113 in April 2008 to $40. On March
2nd, the ETF Profit Strategy Newsletter sent out a Trend Change Alert and
recommended to buy long and leveraged long ETFs such as the Ultra Financial
(NYSEArca: UYG - News) and Ultra S&P 500 ProShares (NYSEArca: SSO - News). If
you care to know, analysts estimate that earnings for the S&P 500 will exceed their
2006 all-time high, in 2011. Based on that assumption, stocks are cheap. How about
that for flawed math?
4+4=9 or Technical Sell Signals = Higher Stock Prices The 200-day moving average
(MA) is one of the best-known technical indicators, as it provides delineation between
technically healthy and sick stocks. On May 20, the S&P closed below the 200-day MA
for the first time since late 2007. Every attempt to rally and stay above it has since failed
miserably. On July 2, the 50-day MA for the S&P dropped below its 200-day MA for the
first time since late 2007. The same holds true for mid caps (NYSEArca: MDY - News),
small caps (NYSEArca: IWM - News) and nearly all individual sector indexes. For good
reason, this is called a Death Cross. Over the past ten years, the death cross has been
accurate 75% of the time, with a 19.72% average return on six winning trades and
6.95% average return on two losing trades. In addition to the Death Cross, there are two
head and shoulders patterns, one in the making for over 10 years, and the other has the
breadth suggestive of a major meltdown (see September ETF Profit Strategy
Newsletter).
5+5=11 or Overvalued Stocks = Higher Prices As explained above, based on overly

optimistic earnings estimates, analysts believe that stocks are cheap. Rather than
basing a future outlook on estimates, it makes sense to use facts as a foundation for
any outlook. Why add an extra variable to what's already an unpredictable market? Ask
Yale Professor Robert Shiller, who's done extensive research on the subject of
valuations, and he'll tell you stocks are historically overvalued based on the current P/E
ratio. Compare today's P/E ratio with the P/E ratio seen at major market bottoms, and
you'll see that stocks are overvalued by more than 50%. Another gauge that doesn't lie
is dividend yields. A company's dividends are a direct reflection of cash flow and
financial health. The current yield is 2.65% for the Dow and 2.05% for the S&P. Even
value funds like the iShares Russell 1000 Value (NYSEArca: IWD - News) yield only a
measly 2.08%. Dividends are close to their all-time low set in 1999 (we know what
happened then). This means that companies are cash strapped or overvalued. Looking
at a long-term chart of dividend yields plotted against stock prices shows clearly that
markets don't bottom until dividends skyrocket. Just as ice doesn't thaw unless the
temperature moves above 32 degrees, the economy won't thaw and show signs of life
unless P/E ratios drop to, and dividend yields rise to, levels seen at major market tops.
The ETF Profit Strategy Newsletter includes a detailed analysis of four valuation
metrics, along with short-term target ranges for stocks and the ultimate market bottom.
Based on simple math and common sense, the July lows are certainly in danger. But it
doesn't stop there.’
DOES HISTORY REPEAT, RHYME OR JUST HAVE COINCIDENCES? Lounsbury:

‘… Has anything of economic utility resulted? I have not found it. And counter to
the effect of the dot.com collapse, the credit bubble collapse may not have
stripped out some of the speculative income excesses. Wall Street bonuses are
back to pre-crisis levels and there has been no "claw-back" of ill-gotten gains
from the pirates who seized the economic ship. In fact, the pirates are still in
command of the ship and are still under full sail. Yo ho ho and a bottle of rum!
From my first Treasury report:
… the problem was that our systems, especially in

finance and health care, are too heavily focused on pay
for transactions rather than pay for outcomes. I didn’t
have the presence of mind to bring instant gratification
into the discussion, but that would have certainly made
my thought process clearer.
I don't think this created any waves, but I will continue to wail in the wilderness
about how compensation formulas contribute to and compound the structural
problems in our financial system. So, back to the earnings chart that started this
discussion. In view of what has been discussed here I believe we will find that
history, in this instance, will at least rhyme, if not repeat exactly. Structural
economic problems are sufficiently similar for the two eras that I expect we will
see some form of recurrence of events 5 and 6 [Depression] …’
Hindenburg Omen Confirmation #1 Today we got our first Hindenburg Omen

confirmation. The number of new highs was 136, and new lows was at 69
(per the traditional WSJ source).
Greek crisis refuses to go away The European Commission has approved the
next €9bn (£7.4bn) tranche of loans for Greece but the underlying economy
continues to deteriorate as Greek banks suffer a record loss of deposits and
output contracts at a quickening pace.
We Killed The Goose That Laid The Golden Egg For middle class Americans, the
new global economy has provided mountains of cheap products made in
China, India and dozens of other nations, but it has also killed the goose that
laid the golden egg.
Grim future for young workers in ‘pensioner ghettos’ Telegraph | Parts of Britain
could become retirement ghettos within a generation with three retired
people for every four in work, a report warns.
Is Our Money Based on Debt? Robert Murphy | The first thing to realize is that the
Fed can control the size of the monetary base, but it can’t directly control its
composition.
Obama Lied About Stimulus Dollars Aiding Local Project A local project that
President Barack Obama cited during a visit Wednesday to Columbus as an
example of how the federal stimulus package has worked isn’t actually being
funded with stimulus dollars.
Black Swans Need Not Apply (6 Reasons Why the Economy is Going Down) Louis
James | My New York adventures are signs of an approaching gold mania,
not a present one. But I believe more firmly than ever that it’s coming.
DISMANTLING BULLISH ARGUMENTS Simon Maierhofer …

Bull Market Argument #1 - Stocks are Cheap Even though the economy is in the
worst shape since the Great Depression, economists at large believe that stocks
(NYSEArca: IVV - News) are cheap … We've previously analyzed the folly of relying on
projected earnings forecasts and therefore, will only pose two more facts as food for
thought before moving onto the next argument. Even if earnings are positive the market
can decline, as we've seen with the 9% and 17% declines in January and May. Most of
the earnings growth has been fueled by cost-cutting, not organic growth. What does that
tell us about the sustainability of growth?
Bull Market Argument #2 - Cash on the Sidelines Cash on the sideline is viewed as
bullish because, theoretically, it can be used to buy stocks and drive up prices. Some
distinguish between corporate cash and retail cash on the sidelines. Many forget that for
every dollar in cash, there is a debt that has to be repaid. According to the Federal
Reserve, nonfinancial firms' debt totals $7.2 trillion, the highest level ever. As far as
retail investors go, the current debt-income ratio is at 126%. The pre-bubble average
was around 70%. To get back to the pre-bubble norm, about $6 trillion worth of debt
would have to be eliminated. Retail money in money market funds is currently around
the same level as it was in 2006/2007. Is that bullish?
Debunking the Bond Myth No doubt there's been a migration from investment dollars
out of stocks and into bonds and gold… Bonds - especially corporate high yield bonds -
could soon assume the role real estate had in 2006. Many thought that real estate
(NYSEArca: IYR - News) will always go up. As it turns out, real estate prices can move
in both directions, as can bond prices.
A Closer Look at Gold What about gold? … The previous cash level low was recorded
in August of 2007. We know what happened then. Rather than focusing on the sideline
cash, perhaps we should focus on the trillions of dollars still in the market. More selling
means lower prices.
'Stocks are Cheap' vs. Realistic Valuations Using projected earnings to determine
the markets real value is like counting chickens that have yet to hatch. Things change,
and as studies have shown, analysts and economist are usually the last to discern that
change. Market forecasting based on solid facts is tricky enough, but basing forecasts
on thin assumptions usually translates into financial suicide… Stock market tops when
P/E ratios are high, dividend yields are low and mutual fund cash reserves are low.
Over the past year, we have seen P/E ratios at an all-time high, dividend yields close to
their 1999 low, and mutual fund cash levels at an all-time low. In addition, we have also
seen investor optimism soar to levels reminiscent of 2000 and 2007…
Schwarzenegger Orders 150,000 Government Workers to Take Time Off Without

Pay Bloomberg | Schwarzenegger directed state workers to take three
unpaid days off each month to save cash.
Weekly Jobless Claims Post Surprise Jump, Hit 500,000 Reuters | New U.S.
claims for unemployment benefits unexpectedly climbed to a nine-month
high last week, yet another setback to the frail economic recovery.
Western Economies Face Hyperinflation: Gold Bull The decline of the Western
economic model will bring about hyperinflation and decades of painful
readjustment, Egon von Greyerz, founder of gold investment intermediary
Goldswitzerland.com told CNBC Thursday.
US Prepares For Gold Standard To understand this objective it helps to go back

to a very important moment in our monetary past…
5 Trillion More Dollars To Fix Fannie Mae And Freddie Mac??? Fannie Mae and
Freddie Mac have become gigantic financial black holes that the U.S.
government endlessly pours massive quantities of money into.
Drudgereport: NEW LOW FOR O: GALLUP DAILY SHOWS OBAMA 41% APPROVE,
52% DIS...
'Allahu Akbar!' Iran test fires new missile...
'Al-Qaida prepares for Israel-Iran war'...
US Assures Israel Nuclear Iran Isn't Imminent...
Israel tells UN it will stop new Gaza aid flotilla...
Lebanon refuses to bow to warning...
CHICAGOLAND: ShoreBank Closed by FDIC...
...strong ties to Obama administration
USA DEBT: $13,310,379,000,000.00
$44,000 PER CITIZEN...
$60M project to resume in D.C. (Washington Post) [Well, at least they’re not fema
concentration / internment camps; naah, they’re for the hoi polloi. Now
luxury apartments for the Washington criminal class; that’s another story.
Time to break out the bubbly ‘cause happy days are here again.
H.R. 645 and The FEMA Concentration Camps The Federal or Union side of
the conflict had its many concentration camps as well. ... and walk out your
front door and see a FEMA concentration camp.
www.infowars.com/h-r-645-and-the-fema-concentration-camps
Alex Jones Presents Infowars.com to Fight the New World Order And how
we burned in the camps later, thinking ... county is a designated home for a
"concentration ... relocated to "secret locations" (FEMA camps).
www.infowars.com/cc_archive.htm
New World Order FEMA Camps Uploaded by doomdaily www.youtube.com
FEMA Concentration and Internment Camps A good over look of what
FEMA is all about. Enslavement and Concentration Camps. It is not about
saving people that is an illusion.
www.freedomfiles.org/war/fema.htm
FEMA Concentration CampsU.S. CONCENTRATION CAMPS FEMA AND
THE REX 84 PROGRAM. There are over 600 prison camps in the United
States, all fully operational and ready to receive ...
www.flyingsnail.com/Dahbud/femaconcentrationcamps.html
U.S. Concentration Camps, page 1 A reported "FEMA camp masquerading
as a water treatment plant" here in Texas was (ta-daa) a water treatment
plant. A reported "FEMA concentration camp ...
www.abovetopsecret.com/pages/camps.html
AMERICAN CONCENTRATION CAMPS FEMA CONCENTRATION CAMPS:
Locations and Executive Orders ..... Ft. Drum - two compounds: Rex 84
detention camp and FEMA detention facility. ...
www.apfn.org/APFN/camps.htm ]
CBO Offers tax cuts assessment (Washington Post) [ One might be inclined to
quip, well, you can’t give what you don’t have; but, we all know that’s not
true in washington these days and they have the red ink to prove it.
Drudgereport: CBO: DEFICIT 9.1% OF GDP... DEVELOPING... ‘(P)recarious
fiscal situation by 2020? I’d call that wishful thinking! The 2020 part. How
‘bout now!]
Jobless benefit claims jump to nine-month high (Washington Post) [Ooooh!

Sounds like a plan! Or, the wrong plan! The one they’re using, that is. Or, no
plan, like Afghanistan!] Drudgereport: NEW LOW FOR O: GALLUP DAILY
SHOWS OBAMA 41% APPROVE, 52% DIS...
Privatizing Virginia liquor stores makes sense (Washington Post) [Wow! I’m
totally shocked. Having spent enough time in virginia with a part-time office
in proximity to washington to discern the corrupt state of affairs of same
dominated by what I refer to as government mob (predominantly cia, related,
etc.) (my direct sampling of corrupt states of jersey the worst, new york,
california, connecticut – 5 for 5) but I had no idea that the state was as
backward as it appeared in having state-run liquor stores. How totally
preposterous! ‘The revenuers are the brewers’ … just kidding!] Seventy-
seven years after the repeal of Prohibition, you'd think we regard the sale of
liquor to consenting adults no differently than the sale of any other good.
Warren sits down with lobbyists (Washington Post) [Talk about appearance of if
not outright impropriety. Just what do these lobbyists do for their money.
Eke out more fraud protection … for the perps? Forget them! ]Elizabeth
Warren, a top candidate to lead the new Bureau of Consumer Financial
Protection, met quietly with some of her sharpest critics: big bank lobbyists.
Federal Reserve's shift in policy doesn't change its basic outlook (Washington
Post) / And what outlook is that? The no-recession initially touted by
bernanke or ‘envy of all the world’ touted by senile greenspun? How ‘bout
reality:
No Exit, Stage Left or Right Peter shiff ‘… Those who fear a double dip recession
are justified in their concerns, but they are also missing the big picture. The
2008 recession never ended. It was merely interrupted by trillions of dollars
of stimulus that purchased GDP “growth” with borrowed money. But as the
bills come due, GDP should now contract …
ongoing economic doom on a scale not seen since the 1930s.
Fed Leads America “To The Brink Of Collapse” When even the New York Times
and CNN are admitting that the United States faces not only a double-dip
recession but potentially a new great depression, any alarm bells that have
not been rung should now be sounding loudly.
10 Signs The U.S. is Becoming a Third World Country Activist Post | Key
economic indicators point to a situation potentially worse than the Great
Depression.
“Surprisingly” Bad Economic News Bob Livingston | Have you noticed how often
the elitist “economists” in government, academia and the media are
surprised by bad economic news?
Deceptive Economic Statistics: While the economists lied the US economy died
Paul Craig Roberts | The bought-and-paid-for-economists got all the media
forums for a decade. While they lied, the US economy died.
Fed Official Admits the Fed Starts Boom/Bust Cycles There are all kinds of things
awry with this article…
Bulls Scatter ... Again ‘At the risk of sounding like a broken record, we wanted to
once again highlight the lack of conviction among investors and advisors in the
current market environment. Following the July rally, bullish sentiment based on
the Investors Intelligence weekly survey jumped to its highest level since May.
Then last week, the S&P 500 dropped more than 3% and the bulls scattered. In
this week's survey, bullish sentiment declined 12% for its largest weekly decline
since the flash crash…’
Know Your Indicators: Hindenburg Omen ‘…Below we outline the five criteria
(taken from Zero Hedge) that need to be satisfied in order for the indicator to be
triggered. They are:
1. That the daily number of NYSE new 52-Week Highs and the daily number of
new 52-Week Lows must both be greater than 2.2% of total NYSE issues
traded that day.
2. That the smaller of these numbers is greater than or equal to 69 (68.772 is
2.2% of 3126). This is not a rule but more like a checksum. This condition is
a function of the 2.2% of the total issues.
3. That the NYSE 10-Week moving average is rising.
4. That the McClellan Oscillator is negative on that same day.
5. That new 52-Week Highs cannot be more than twice the new 52-Week Lows
(however it is fine for new 52-Week Lows to be more than double new 52-
Week Highs). This condition is absolutely mandatory…’
Another Round of POMO: Dave's Daily ‘…Thursday we'll get another round of
Uncle Sugar's special blend via more POMO (Permanent Open Market
Operations). This private label brew will go directly to the Primary Dealers (dba:
Da Boyz) who will use it to trade as before…’
More Fuel For a Bigger Decline Simon Maierhofer, On Tuesday August 17, 2010, 4:18
pm EDT A French proverb states that a fault denied is committed twice. Denial, as
blissful as it is for the time being, does not serve as protection against the inevitable.A
perfect example of denial is the May 6 flash crash. Neither Wall Street, the financial
media, nor investors wanted to see the danger of such a meltdown beforehand. After it
happened, they were in denial about the cause.
Denial is Bliss
The simple truth is that the market was ripe for a major correction. A few weeks before
the flash crash, the ETF Profit Strategy Newsletter noted the extremely low CBOE
Equity Put/Call Ratio and warned: 'It seems that only a minority of equity positions are
equipped with a put safety net. Once prices do fall and investors do get afraid of
incurring losses, the only option is to sell. Selling, results in more selling. This negative
feedback loop usually results in rapidly falling prices.' As it turns out, there was no
clumsy-fingered trader at fault for the decline that reduced the Dow (DJI: ^DJI) by more
than 1,000 points in one day. If it had been a simple error, stocks wouldn't have fallen to
new lows after the flash crash. If it had been a simple error, the S&P (SNP: ^GSPC) and
Nasdaq (Nasdaq: ÎXIC) wouldn't still be trading below the flash crash close.
The Reality of Denial
But, that's the power of denial. Since the April 26 highs, the S&P has been moving from
lower highs to lower lows. On July 1, the S&P had arrived at 1,011. The ensuing rally
lifted the markets by nearly 10%, but failed to push the S&P and Nasdaq above the July
21 highs. The July 21 highs failed to move above the May 12 highs. The May 12 highs
were significantly short of the April 26 highs. Despite the obvious downtrend, investors
get as excited about dead end bounces as ever. This is not a bullish omen. In fact,
according to the ETF Profit Strategy Newsletter's technical analysis, the steepest leg of
the decline is still ahead. Before we look at more technical details, let's browse through
some fundamental factors that reflect the current state of denial:
Don't Worry About Bank Failures
111 banks were added to the FDIC's failed bank list thus far in 2010. At the same time
last year, only 76 banks had been shut down. According to an FDIC press release,
Metro Bank of Dade County had total assets of $442.3 million and total deposits of
$391.3 million. Assets outweigh liabilities by $51 million. That's good, but apparently not
accurate. According to the FDIC's press release, closing Metro Bank will cost the FDIC
$67.6 million. Why? Because an accounting trick allows banks to artificially inflate their
assets. The accounting trick allowed this small bank to overstate its assets by about
25%. Other banks on the FDIC list overstated their assets by more than 50%. Imagine
the size of the problem, considering that the four biggest banks (NYSEArca: KBE -
News) of the country have about $7.5 trillion in combined assets. We should also point
out that none of those losses technically affect earnings, at least not yet (for a detailed
analysis refer to the June issue of the ETF Profit Strategy Newsletter).
Don't Worry About Falling Real Estate
The National Association of Home Builders reported that its monthly reading of builder's
sentiment about the housing market sank to 14, the lowest level since March 2009.
Unlike other economic indicators, this index is taken from builders that have their finger
on the pulse of Main Street and is forward looking. Despite the rally in equities
(NYSEArca: VTI - News) and real estate (NYSEArca: IYR - News), homebuilders
(NYSEArca: XHB - News) never really saw light at the end of the tunnel.
Don't Worry About Foreclosures
According to RealtyTrac, more than 1 million American households are likely to lose
their homes to foreclosure this year. This is about 10 times as high as during an
average year. 25% of the U.S. household sector has a sub-600 FICO score. Yet, Fannie
Mae is offering financing to first-time buyers who only have a $1,000 down-payment.
Nearly $150 billion have been spent to keep the doors of Fannie, Freddie and company
open. Does it make sense to artificially extend the life of a patient destined to die? In
the case of Fannie, politicians seem to think that lending more money and ultimately
creating more toxic assets will solve the problems. Even a third grader understands the
irony of that concept. Denial is alive and well.
Don't Worry About Bankrupt States
States are in trouble. The bigger the state, the bigger the trouble it seems. California
has a $1.8 trillion economy. If CA was a country, its economy would be the seventh
biggest in the world, bigger than Russia. But, CA has no money. CNN reports that as
many as 200,000 state workers in CA could see their pay scale slashed to minimum
wage, if orders from the governor's office are followed. You don't need to be one of the
200,000 to know that is bad. To go from state salary to minimum wage is a huge drop.
Don't Worry About Falling Prices
Look around and you see a general downtrend develop: U.S. stocks (NYSEArca: IWB -
News), international stocks (NYSEArca: EFA - News) and emerging market stocks
(NYSEArca: EEM - News). The same applies to commodities (NYSEArca: DBC -
News), real estate prices (NYSEArca: RWR - News) and consumer goods. The above-
mentioned 'don't worries' all contribute to the deflationary spiral (see image below for a
visual). Unemployment remains high because businesses have no pricing power. This
leads to lower income, default foreclosures, and ultimately even higher unemployment.
Even Bernanke knows, there is no easy fix to a deflationary cycle. Once engrained, it
feeds on itself. [chart]
Don't Worry About Death Crosses
A death cross is one of the most powerful technical indicators. It occurs when the
shorter simple moving average (SMA) crosses below the longer SMA. Over the last few
weeks we saw literally dozens of such death crosses. Most notable was the S&P, Dow
Jones and Nasdaq experiencing not only a death cross created by the 50 and 200-day
SMA, but also courtesy of the 10 and 40-week SMA. Despite the rally from the July
lows, the sell signal triggered by the various death crosses remained active. The fact
that the Dow Jones was the only major index to rally above the June 21 highs provides
an additional bearish non-confirmation. Over the past ten years, the buy/sell action
triggered by the SMA crosses has a success rate of 75% - 100%. Winning trades
outperformed losing trades by a ratio of at least 3:1. In investing, those are not the kind
of odds you want to bet against. In other words, it's time to face reality and abandon
denial. Leading up to the April highs, the ETF Profit Strategy Newsletter noted a
pinnacle of denial which was reflected by investors' outright enthusiasm about stocks. At
a time when approximately 8 of 10 investment advisors and newsletter writers were
bullish on stocks, the ETF Profit Strategy Newsletter noted: 'The message conveyed by
the composite bullishness is unmistakably bearish. The pieces are in place for a major
decline.' Since April 26, the major indexes dropped as much as 17%. Despite the recent
rally, this seems to have been only the first installment of a significant decline. This
decline is now in progress. In fact, the August issue of the ETF Profit Strategy
Newsletter explains the one chart-pattern that explains why the next leg down will be
strong and powerful. A British Historian noted decades ago that a wise person does at
once what a fool does at last. Both do the same thing; only at different times. Will you
get out of the markets way in time, or too late?
Here’s a new piece of the dismally murky puzzle which belies a previous raison
d’etre for rally: Greek Bonds Slump As Austerity Backfires, Country Enters
“Death Spiral”, And The Violent End Game Approaches . Previously, Walmart
same store sales were actually down (overseas results were up), and, think about
it. Isn’t Walmart, as essentially an american based sales agent of china products
a ‘contrarian indicator’ for the the u.s.; that is , hasn’t Walmart’s rise coincided
with american main street’s demise. Similarly, fraudulent wall street high
frequency churn and earn programmed trade scams among many other frauds
as yet unprosecuted has heralded the death knell for american business and the
economy, generally. Old news at best and, that ‘not bad as expected, better than
expected dog don’t hunt no more’! ‘YAHOO [BRIEFING.COM]: … Retailers were
also strong. As a group retailers climbed 1.8%. Discount retail giant and Dow
component Wal-Mart (WMT 51.02, +0.61) was a solid performer on the back of in-
line earnings and an improved forecast. Home improvement retailer and fellow
Dow component Home Depot (HD 28.31, +0.93) had a more positive influence over
retailers. It posted better-than-expected earnings for the latest quarter, but issued
a rather mixed forecast. A smaller-than-expected increase in housing starts
during July didn't do anything to derail the stock this session. Housing starts for
July increased 1.7% month-over-month to an annualized rate of 546,000 units,
which is less than the rate of 555,000 units that had been widely anticipated.
Building permits for July fell 3.1% month-over-month to an annualized rate of
565,000, which is below the rate of 573,000 that had been expected…’ But, just a
push of the computer programmed trade button and off we go, reality / valuation /
economics be damned. In real security analysis (very simplified / summarized), as
opposed to the continued frauds on wall street, one must begin with the largest
and most significant aggregate (a simple word picture / analogy: ‘rising tide lifts
all boats’). If you get this right, the probabilities in your favor are substantially
enhanced. From there, you want leading industries, and leading companies within
said leading industries (again, larger aggregates then picks, to enhance
probabilities, not guarantees, in your favor). Your time frame, 1-3-5 yrs tops for
projections, (including income statement/EPS, balance sheet, and applying an
appropriate P/E – a detailed, multi-faceted approach beyond what could be
described in this summary); and, that’s all they are, projections. Beyond that time
frame, your guess. On fraudulent wall street, every day, though already
discounted in large part (6-8 mos, approx.), the market spins, churns, and with
lightning fast computerized high-frequency trade programs commissions in huge
volumes like no other time in financial history when real valuation meant
something, with no net economic value added, but very lucrative to the frauds on
wall street, which ultimately is a net detriment to the economy / the nation /and
other industries as we’ve seen and as described elsewhere on this site and in
these posts http://albertpeia.com . Preposterously, they even sometimes refer to
seasonal factors as if hearing them for the first time and ‘explaining’ an up move
(almost invariably already discounted). Today, they shrugged off the deepening
economic reality despite the election year frothing / manipulations. This is a
global depression. This is a secular bear market in a global depression. The past
up move was a manipulated bull (s***) cycle in a secular bear market. This has
been a typically manipulated bubble as has preceded the prior crashes with great
and disgorgement imposed. ].
numerous components in the latest GDP number that are extremely suspect. The
vast majority of investors are going to be taken to the cleaners. I realize this view
is far from the consensus. Even those who are in the bear camp aver that the
Stimulus did in fact bring us out of recession at least temporarily.
However, I would strongly contend that the recovery was in fact non-existent for
the following reasons:
1. The Government data used to validate the recovery (GPD,

unemployment, etc) is clearly massaged if not bordering on outright
propaganda
2. We are in fact in a depression and the “recovery” was simply a
bounce in economic activity taking place within the context of a
larger economy contraction
Regarding #1, every Government data point used in promoting the “recovery”
had some degree of fudging in it. Let’s consider GDP for instance.
There are numerous devious tactics used to overstate GDP growth, however, the
most obvious gimmick the BLS uses is overstating GPD growth in the present
and then revising it lower in the subsequent quarters.’
Kaufman on High Frequency Trading ‘Sen. Ted Kaufman (D., Del.) has been
banging the drum on the need for regulatory changes to high frequency trading
for a while. His latest thoughts on the matter take the form of a letter to SEC
Chairwoman Mary Schapiro urging — among other things — major high-
frequency trading firms be required to register with the Securities and Exchange
Commission. Dow Jones Newswires’ Jacob Bunge reports:…’
10 Signs The U.S. is Becoming a Third World Country Activist Post | Key
economic indicators point to a situation potentially worse than the Great
Depression.
The Bond Market Is Signaling Trouble Ahead Claus Vogt | My outlook for the
economy and the stock market has steadily and significantly deteriorated
since March 2010.
China Drains Obama Stimulus Meant for U.S. Economy Bloomberg | Globalization
is pitting the Wangs in China or Gandhis in India against the Smiths in the
U.S. or Gonzalezes in Spain.
Chossudovsky: China could already be world’s largest economy It’s widely

predicted that China’s economy will be the largest in the world by 2020,
overtaking the U.S. Only this week the country surpassed Japan to become
the world’s second biggest economy by GDP.
Greek Bonds Slump As Austerity Backfires, Country Enters “Death Spiral”, And
The Violent End Game Approaches Those patiently following the Greek
Bond-Bund spread to its inevitable conclusion have been fully aware that
the plan that Europe is betting its entire future on, is patently flawed: namely
that austerity, by its definition does not, and will not work.
Malaysian Province Moves To Gold And Silver-Based Currency In “Main Islamic

Event Of The Last 100 Years” More world governments are “just saying no”
to the ponzi. Last week, the Malaysian government of Kelantan “said it was
introducing a new monetary system featuring standardised gold and silver
coins based on the traditional dinar and dirham coins once used by the
Ottoman Empire.”
Analysts Foresee $1,300 Gold By Year-End Worries about a fragile U.S. economy
are likely to keep investors shifting toward gold and could push the metal to
fresh record highs near the $1,300 area by year-end, analysts and traders
say.
Kicked In The Groin: Health Insurance Companies Are Dramatically Increasing

Premiums Due To The New Health Care Law And There Is Not Much We Can
Do About It Wasn’t the new health care reform law supposed to make health
care more affordable for everyone? Well, imagine my surprise when I
opened up a letter from my health insurance company recently and found
out that my health insurance premiums were going up by nearly 50 percent.
geithner: Fannie, Freddie in need of overhaul (Washington Post) Now this is an

understatement from tiny tim, God bless us everyone. I think tiny tim’s more
concerned with public perception over their haul of taxpayer dollars.
Manufacturing, housing sectors exhibit diverging fortunes (Washington Post) I’d

say understatement but I truly don’t know what this headline means juxtaposed
with ‘fortunes’.
Are You Ready For How Bad It Will Get? Graham Summers | There are numerous
components in the latest GDP number that are extremely suspect.
China Slashes U.S. Government Bond Holdings By The Largest Amount Ever
China began reducing its holdings of U.S. government bonds again in June,
and in fact cut just its holdings by the largest 1-month amount ever.
18 Signs That America Is Rotting Right In Front Of Our Eyes Sometimes it isn’t
necessary to quote facts and figures about government debt, unemployment
and the trade deficit in order to convey how badly America is decaying.
Goldman Sachs Could be Largely Unaffected by ‘Financial Overhaul’ As Wall

Street scrambles to find the best and most profitable way to operate under
the new financial reform law, Goldman Sachs Group Inc. — the firm that was
expected to suffer the most under the legislation — could emerge practically
unscathed.
Tons of gold imports turn to dust on arrival Several tons of gold imported into
the UAE by traders and investors turned out to be fake on closer inspection,
resulting in millions of dirhams in losses and high levels of stress to the
victims.
Google Yanks “Kill The Web” Article That Warned Of Internet Takeover Paul
Joseph Watson | In the face of censorship, it’s more important than ever that
people get the word out about Google’s plan to kill the web.
‘Bombshell Barack’ and ‘Kill Web’ Heading to Top of Google Trends Matt Ryan |
Alex Jones would like to again thank everyone for their continued support in
spreading the message of truth.
Google Plans To Kill Web In Internet Takeover Agenda Paul Joseph Watson |
Doomsday scheme will silence independent voices for good.
Provocateurs Spray-paint “Infowars.com” on Private Property in Pennsylvania

Kurt Nimmo | Fox News station in Pennsylvania insinuates Infowars.com
behind incident.
first appeared as normal, our earlier article about Google’s plan to kill the web
has been completely de-listed from Google News. This is completely
Drudgereport: NEW LOW FOR O: GALLUP DAILY SHOWS OBAMA 41% APPROVE,
52% DIS...
Death of the 'McMansion': Era of Huge Homes Is Over...
Bankruptcies Reach Nearly 5-Year High...
REPORT: China targets U.S. troops with arms buildup...
Military power growing...
Pentagon warning...
Risky game on the high seas...
How long can America fend off the dragon?
'Without a revolution, Americans are history'...
From Good to Mediocre ‘Through last Friday, 2,127 US companies had reported
quarterly numbers this earnings season. What started out as a strong earnings
season is going out with a whimper (earnings season ends tomorrow with Wal-
Mart's report)…’
10 Signs The U.S. is Becoming a Third World Country Activist Post | Key economic
indicators point to a situation potentially worse than the Great Depression.
Are You Ready For How Bad It Will Get? Graham Summers | There are numerous
components in the latest GDP number that are extremely suspect.
Without a Revolution, Americans Are History The United States is running out of
time to get its budget and trade deficits under control. Despite the urgency
of the situation, 2010 has been wasted in hype about a non-existent
recovery. As recently as August 2 Treasury Secretary Timothy F. Geithner
penned a New York Times column, “Welcome to the Recovery.”
How Goldman Sachs Is Screwing Over Other Banks In The Coming GM IPO As if
its rivals didn’t have reason enough to hate Goldman Sachs (GS), they’ve
just been given one more reason.
China Favors Euro Over Dollar as Bernanke Alters Path Bloomberg | China,
whose $2.45 trillion in foreign-exchange reserves are the world’s largest, is
turning bullish on Europe and Japan at the expense of the U.S.
High Probability for Lower Market Prices Ahead ‘…Economic numbers being what
they are (very poor), we should expect a downward revision of second quarter
GDP to 1.5% from the originally disappointing number of 2.4%. As more data is
being released it is apparent that we are witnessing even further deterioration
here in the third quarter…We may have reached a tipping point where many are
tired of others being the benefactors of taxpayer money …’
Gold Providing Safety During Market Downturn ‘ … The death cross occurs when
the 50 day moving average crosses the 200 day moving average on the downside.
These patterns, when combined with other technical indicators can predict major
market downturns…THE ODDS OF A LONG TERM DOWNTREND ARE BECOMING
HIGHLY PROBABLE. THESE SIGNALS COULD POSSIBLY INDICATE THE START
OF A TWELVE TO EIGHTEEN MONTH DOWN CYCLE. Gold, on the other hand,
has shown great relative strength despite the general markets correcting and
negative sentiment about the economy from Washington…’
Pension check may not be in the mail Chicago Tribune | Illinois public employees
who think the state constitution guarantees that they’ll get all their pension
benefits
Back to School? Bring Your Own Toilet Paper New York Times | “The first time I
saw it, my mouth hit the floor,” Emily’s mother, Kristin Cooper, said of the
list, which also included perennials like glue sticks, scissors and crayons.
An Argentina-like Economic Crisis Scott Strzelczyk | The United States’ economic

decline precariously resembles Argentina’s economic collapse.
U.S. Economy Near Point of No Return Dan Weil | The Federal Reserve’s decision
to expand its quantitative easing by purchasing more Treasuries is a
dangerous one.
Obama Says Private Accounts Would Endanger U.S. Social Security Benefits
President Barack Obama said Republican proposals to have people invest
Social Security benefits in private accounts would increase the U.S. budget
deficit and put retirement money at risk to “the whims of Wall Street
traders.”
The Trade Deficit Nightmare When they hear the word deficit, most Americans
immediately think of the U.S. government budget deficit which is rapidly
spiralling out of control.
Fed’s Hoenig: Keeping Rates Too Low ‘Dangerous Gamble’ The Federal Reserve
is undertaking a “dangerous gamble” by keeping rates at near zero for so
long, and must start raising rates or risk damaging the nascent U.S.
recovery, a top Federal Reserve official said on Friday.
Will Quantitative Easing By The Federal Reserve Unleash Economic Hell? The
Economic Collapse | Most of the folks populating Congress are so incompetent
that they should not even be hired to mop the floors of a Dairy Queen.
China surpasses Japan as world's No. 2 economy (Washington Post) [ As if we

didn’t see that coming! ]
Dr David Kelly was on a hitlist, says UN weapons expert as calls grow for full
inquest Mail Online | Dr Richard Spertzel claimed Dr Kelly was on a ‘hitlist’ in
the final years of his life.
Iran Attack This Week? Kurt Nimmo | John Bolton and the neocons refuse to
accept that Iran’s facility will produce nuclear energy and insist it will be
used to create nuclear weapons.
The Hidden Tragedy of the CIA’s Experiments on Children Shortly after deciding
to initiate her own LSD experiments on children, Bender attended a
conference sponsored by a CIA front group, the Josiah Macy Foundation.
Shilling for War on Iran I guess I was naïve in thinking that The Atlantic and its
American-Israeli writer Jeffrey Goldberg might shy away from arguing for yet
another war — this one with Iran — while the cauldrons are still boiling in
Afghanistan and Iraq. Even world-class chutzpah must have its limits, I had
thought.
dangerous one.
Economic Collapse | Most of the folks populating Congress are so
incompetent that they should not even be hired to mop the floors of a Dairy
Queen.
Drudgereport: O FALLS TO NEW LOW AT GALLUP DAILY...

China overtakes Japan as No. 2 economy...
China Favoring Euros Over Dollars...
'Without a revolution, Americans are history'...
NEWSWEEK: World's Best Country: Finland [USA #11]...
House to cut food stamps to fund Mrs. Obama's 'let's move' initiative...
Banks to benefit most from White House effort to fight foreclosures...
Petraeus: 'We're doing everything we can' …[Sounds like a plan!]...
Builds Case for 'Success' in Afghanistan …[If only words could make it
so!]...
Karzai asks Obama for review of war...
Foreign troops deaths pass 2,000...
MYSTERY: West Wing of White House covered in tarp...
Harvard University fund sells all israel holdings... … UPDATE: Harvard
insists israeli shares sale not driven by boycott...
GOOGLEVERIZON Deal: Fears for Privacy...
HOW TO BEAR MARKET PROOF YOUR PORFOLIO Simon Maierhofer, On Friday

August 13, 2010, ‘… The 22 trading days following the April 26 market highs
erased eight months worth of gains. Bear markets move much quicker than bull
markets.
Rule #1: Better too Early than too Late
When preparing for a bear market (we'll discuss in a moment why we have been
preparing for a bear market), it is prudent to start early. Anyone who sold their
long positions as early as September last year would be in a better position than
the buy-and hold crowd that is still clinging to their holdings.
Rule #2: Don't Trust Wall Street and the Media
By now, even the mainstream media is sensing that something might not be quite
right with the market's performance. However, there is still hope that the second
half of the year will get a lift from positive earning results. Before you bet your
money on that line of reasoning, consider the picture the media painted days
within the April 2010 market top.
April 19, 2010 'America is back - The remarkable tale of an economic turnaround'
– Newsweek
'Recovery tilting to V-shape as profits prompts growth revision' - Bloomberg
April 25, 2010: 'U.S. stocks cheapest since 1990 on analyst estimates' –
Bloomberg
'Technical Analysts see room to roll' - Wall Street Journal
April 27, 2010 'Greece contagion fears unfounded' - Reuters

May 3, 2010: 'Manufacturing in U.S. grows at fastest pace since 2004 as recovery
gains traction' - Bloomberg
Over the past two and a half months, the S&P (NYSEArca: SPY - News) and Dow
(NYSEArca: DIA - News) have lost as much as 17%. A 20% loss is considered the
mark of a new bear market. In essence, we are only one bad day away from the
next bear. Of course, throughout the massive bear market rally from the March
2009 lows, which the ETF Profit Strategy Newsletter predicted via the March 2,
2009 Trend Change Alert, the newsletter maintained that it was only a bear market
trap which would fool a majority of investors. On April 16 it stated that 'Most bulls
have no clue why they are bullish except for the fact that they feel the need to
play the momentum game. Sounds like 2000 and 2007 all over again. The
message conveyed by the composite bullishness is unmistakably bearish.'
Rule #3: Don't Underestimate Cash
In a period of falling prices, cash or cash equivalents like short term Treasuries
(NYSEArca: SHY - News) maintain your purchasing power - long-term Treasuries
(NYSEArca: TLT - News) are interest rate sensitive and may move faster than you
think. When stocks fall and you are able to maintain your purchasing power, you
are able to buy stocks at a discount. In essence, cash offers a positive return in
periods of falling prices. Additionally, or alternatively, investors may choose to
buy short or leveraged short ETFs such as the Short S&P 500 ProShares
(NYSEArca: SH - News), UltraShort Russell 2000 ProShares
(NYSEArca: TWM - News) UltraShort S&P 500 ProShares
(NYSEArca: SDS - News), Short Financial ProShares (NYSEArca: SEF -News),
Direxion Daily Financial Bear 3x Shares (NYSEArca: FAZ - News) and many more.
Rule #4: Don't Procrastinate
On May 14, the ETF Profit Strategy Newsletter predicted that the S&P
(NYSEArca: IVV - News) will fall through the important 1,040 resistance level.
Aside from a small cluster of resistances (one being round number resistance), a
break below 1,040 opened the door wide for significantly lower prices. We
mentioned above that we've been preparing for a reemerging bear market even
before the April highs. Why? Simply put, stocks are overvalued. How can that be?
One of the above headlines read that U.S. stocks are cheapest since 1990, at least
according to analyst projections. The key word is projections. Analysts project
operating earnings for the S&P to clock in at $94.83 in 2011. This is higher than
the 2007 peak of $91.47. That's right, despite record high unemployment, a
European (NYSEArca: VGK - News) debt crisis, a 17% U.S. market correction, and
all the other problems economists expect corporate profits will exceed their 2007
all-time highs. Does that sound reasonable to you? Keep in mind that projected
earnings are just that - projected. They can and will change. In fact, analysts have
a reputation of following the trend. In April 2008, analysts predicted earnings of
$113. After cutting its forecast to $53, Goldman Sachs cut its earnings forecast to
$40 in March 2009. As we know today, stocks rallied, and actual 2009 earnings
came in at $56.87. The list goes on, but the simple message is that analysts tend
to be overly optimistic before the fall and overly pessimistic before a rally. Right
now they are overly optimistic. The conclusion is easy.
Rule #5: Know who to Trust
Even when basing the current P/E ratio on overly optimistic estimates, it is still
far away from the P/E ratios seen at historic market bottoms. The same holds true
for dividend yields. A look at various valuation measures shows that the market
is overvalued by much more than just 10 or 20%. The ETF Profit Strategy
Newsletter provides a detailed analysis of four valuation metrics with a near
spotless track record of historic accuracy…’
No Exit, Stage Left or Right Peter shiff ‘… Those who fear a double dip recession
are justified in their concerns, but they are also missing the big picture. The 2008
recession never ended. It was merely interrupted by trillions of dollars of stimulus
that purchased GDP “growth” with borrowed money. But as the bills come due,
GDP should now contract … After decades of abuse, it’s time for the Fed to take
make a dramatic exit, because the US economy can’t take it anymore.’

The Dollar’s Third and Final Act LewRockwell.com | The US credit system is in the
midst of its third credit crisis since the advent of the Federal Reserve.
Roubini: Even If The Economy Doesn’t Technically Double Dip, It’s Still Going To
Be Awful If you haven’t seen it already, I highly recommend this interview
with Nouriel Roubini. Particularly he raises the point that while the U.S. may
not technically double-dip into a new recession, it’s going to feel like it is.
Hindenburg Omen: Stock Market Crash Imminent? Easily the most feared
technical pattern in all of chartism (for the bullishly inclined) is the dreaded
Hindenburg Omen. Those who know what it is, tend to have an atavistic
reaction to its mere mention.
Capital Controls: The Final Phase in the Great Looting of America Eric Blair |
Capital controls are the next big event in the government-banking-oligarchy’s
great looting of America.
Jobless claims jump to 5-month high The number of first-time filers for
unemployment insurance rose to the highest level since late February last
week, according to a weekly government report released Thursday.
Deficit in July Totals $165.04 Billion The U.S. government spent itself deeper into
the red last month, paying nearly $20 billion in interest on debt and an
additional $9.8 billion to help unemployed Americans.
recession but potentially a new great depression, any alarm bells that have not
been rung should now be sounding loudly.
Bailouts Went To Foreign Banks: Congressional Report Confirms What We

Already Knew A Congressional Oversight Panel issued today highlights the fact
that large portions of the Treasury’s $700 billion bailout fund have gone straight
into the coffers of foreign banks, a fact that we knew months ago, but is only now
being officially recognised.
Fed Leads America “To The Brink Of Collapse” Paul Joseph Watson |
Bernanke announcement that central bank will buy US debt marks point of
no return.
15 Economic Statistics That Just Keep Getting Worse The Economic

Collapse | Anyone who claims that things are getting “better” is either
ignorant, completely deluded or is purposely lying.
Economy Teeters On The Brink and Market Manipulation Continues Bob

Chapman | It’s just the same old, same old, business as usual in America.
The Fed’s New Round of Quantitative Easing Is Like Trying to Patch Leaking
Pipes by Pumping in More Water Washington’s Blog | The government hasn’t
even tried to replace the leaking sections of pipe in our economy.
Is this finally the economic collapse? Fortune | Should we bite the bullet and
accept that current economic policy dictates 0% returns-on-savings, even as
Washington continues to lever-up our future to the point of economic
collapse?
U.S. Is Bankrupt and We Don’t Even Know Bloomberg | Let’s get real. The
U.S. is bankrupt. Neither spending more nor taxing less will help the country
pay its bills.
Marc Faber: Protect Your Property with High Voltage Fences, Barbed Wire, Booby
Traps, Military Weapons and Dobermans Investment guru and publisher of The
Gloom, Boom and Doom report, Marc Faber, regularly discusses investment
strategies for protecting and building wealth during times of economic distress.
States get grants to help regulate health insurance rates (Washington Post)
Sounds like a plan … born of capital hill math; viz., ie., just sayin’, $1 million
for a bureaucracy that will cost many millions, even as states like the nation
itself are defacto bankrupt.
Regulators consider toughening overdraft rules even more (Washington Post)

Wow! They’re tough … when talking millions instead of the hundreds of
billions of taxpayer funds they’ve frittered away. You can’t make this stuff
up!
Barclays Bank agrees to forfeit $298 million to authorities (Washington Post)

Well, they haven’t gotten to the point just yet where it’s just not worth doing
business in america, but they’re workin’ on it and getting’ there!
In Supporting The Ground Zero Mosque, Barack Obama Falls On His Sword [ I
really wasn’t inclined to comment on this because it’s just not that big a deal
except as to exceedingly small minds. However, I feel I must say that if the
jewish Mayor of NYC who is certainly no slouch and really knows how to
count thinks it’s ok, then it’s OK. Period! ] With President barack obama’s
political dynasty already on life support, his decision to publicly back the
hugely unpopular building of a Muslim mosque near Ground Zero confirms
that Obama, or rather the advisors that pull his strings, have decided to
commit political suicide and cut him loose from the Washington power
structure, with the hope of fooling Americans with another establishment
Republican as a legitimate alternative in 2012.
Makeup of Obama's housing reform panel draws ire (Washington Post) [Wow!
Talk about late to the party! I mean … a conference? It’s not as if this was
some new or novel problem coming down the pike. Then there’s the
everything but the core issue / problem approach that seems recurringly
fashionable.] Advocates say that the administration is excluding consumer
and community groups from playing prominent roles in a government-
sponsored conference next week that will kick off efforts to overhaul
national housing policy.
Warnings: Social Security at risk (Washington Post) [ Not this again! It bears
repeating, that was always a bad idea and there was a plethora of reasons set
forth on my site as to why the social security privatization plan being shilled by
moron war criminal dumbya bush on behalf of the wall street frauds was an
exceedingly bad idea. Indeed, as defacto insolvent as america / the social
security system is, the nation and system would have been wiped out by
privatization debacle. Talk about too big to, but still failed. It was a bad idea then,
and though accusations may fly as to fear mongering, the reality of the venality
attendant to such a preposterous course on behalf of the wall street frauds
requires vigilance, scrutiny, and discourse concerning even the remote
possibility of such a fool-hearty betrayal of the citizenry of the nation. As such, as
off the mark as wobama has almost invariably been, he’s on the mark on this. ]
ANALYSIS | Obama says GOP wants to privatize program, but liberals see a
different threat.
Foreclosures surge 9 percent in July (Washington Post) Those glass-half-full

frauds on wall street along with the administration will be cheering this
unequivocally bad news with a dubious retort as ‘used home sales will rise’ …
riiiight! Anything you say …
Stocks dip for third straight day (Washington Post) [Investor fears? How ‘bout
reality. Even an essentially non-business site as Drudge has the pulse of this
pervasive realization that ‘those dogs of happy days are here again don’t hunt no
more’. Check the heads: DRUDGEREPORT: America Is 'Bankrupt Mickey Mouse
Economy'...
WIRE: USA 'Bankrupt and We Don't Even Know It'...
DEFICIT ADDS $165,040,000,000.00 -- IN ONE MONTH!
YOUTH UNEMPLOYMENT HITS RECORD HIGH
JOBLESS CLAIMS JUMP TO HIGHEST SINCE FEB...
California can't pay bills -- may use IOUs for August payments...
Homes lost to foreclosure up 6% from last year...
Grim Voter Mood Turns Grimmer... and Economists Herald New Great Depression
scores of others now forecasting ongoing economic doom on a scale not seen
since the 1930s. Peter Schiff: “We’re in the Early Stages of a Depression” The
Motley Fool | Four years and the worst recession since the Great Depression
later, Schiff stands alone again with a bleaker diagnosis for the economy: an
inflationary depression. My take: This is a global depression. This is a secular bear
market in a global depression. The past up move was a manipulated bull (s***)
cycle in a secular bear market. This has been a typically manipulated bubble as
has preceded the prior crashes with great regularity that the wall street frauds
and insiders commission and sell into. This is a typical wall street churn and earn
frauds et als are criminally prosecuted, jailed, fined, and disgorgement imposed
Pearlstein: The FCC and the bandwidth wars (Washington Post) [The internet has
been among the few areas of growth and american prominence, at least at this
point in time. Clearly, as with the throng that heralded in NAFTA, the self-
interested voices of ie., google, verizon, etc., are similarly anathema to the greater
good (as was NAFTA). Berners-Lee spoke against such parochialism in no
uncertain terms, much as did Ross Perot on NAFTA and history has proven Perot
correct as is so of the mind numbing approaches of google, verizon, etc.]
Google-Verizon Pact: It Gets Worse (infowars.com) [ Timothy Berners-Lee,
putative father of the internet along with Cerf, has already weighed in on this
topic and strenuously opposed same and whose learned opinion should be given
great weight. google and verizon as mere government shills at best and
government, ie., nsa / cia, etc., operatives at worst, are ‘johnny-come-latelies’ and
died fast in government hands! ]. So Google and Verizon went public today with
their “policy framework” — better known as the pact to end the Internet as we
know it.
AP Business Highlights ‘Jobs picture dims as unemployment claims rise

WASHINGTON (AP) -- The economy is looking bleaker as new applications for
jobless benefits rose last week to the highest level in almost six months. It's a
sign that hiring remains weak and employers may be going back to cutting their
staffs. Analysts say the increase suggests companies won't be adding enough
workers in August to lower the 9.5 percent unemployment rate. First-time claims
for jobless benefits edged up by 2,000 to a seasonally adjusted 484,000, the Labor
Department said Thursday. That's the highest total since February. Analysts had
expected claims to fall…’
Bearish Sentiment Falls to 14-Week Low [Talk about contrarian indicators!] AAII
– ‘Bullish sentiment rose 9.4 percentage points to 39.8% in the latest AAII
Sentiment Survey. Despite the size of the increase, the proportion of individual
investors expecting stock prices to rise over the next six months is only at a two-
week high. The historical average is 39%. Neutral sentiment, expectations that
stock prices will stay essentially flat over the next six months, fell 1.3 percentage
points to 30.1%. The historical average is 31%. Bearish sentiment, expectations
that stock prices will fall, dropped 8.1 percentage points to 30.1%. This is a 14-
week low. The historical average is 30%. The survey period, Thursday through
Wednesday, needs to be taken into consideration when looking at these results.
Stock prices were essentially flat through most of this week's survey period (with
the obvious exception of yesterday), giving some investors hope that a short-
term bottom had been established. Though there were big changes in bullish and
bearish sentiment, both optimism and pessimism are close to their historical
averages. As a result, I would argue that individual investors' confidence in the
market remains fragile…’
Lavish lifestyle for bank executive in Waters case (Washington Post) While this is
typical of California, isn’t it as typical of the wall street frauds? Scammin’
everybody with that too big to fail b*** s*** when they’re a net economic
drain, high frequency churn-and-earn computer programmed trading scams
among the more blatant frauds emanating from their insatiable greed and
sense of entitlement. Previous post: Cities, counties could slash 500,000
more jobs (Washington Post) Could? I’d say must. Particularly when you
factor in that this election ‘spurt’ leaving the nation even more bankrupt is
illusory. I had occasion some time ago in speaking with a long-time
California resident (instructor at the college gym where I worked out) to
express my surprise at the bloated (municipal, state) high-priced
bureaucracy which of course is not productive except as to higher taxes and
which is at the forefront in the city of Bell where the city manager was paid
nearly 900,000 annually (with benefits the package was an incredible
$1,500,000), and specifically mentioned the part-time typical compensation
of $100,000 and contracts to interested, even familial, parties. Of course, no
one has done this better than feinstein, albeit on a more federal level and
China contracts through her husband’s companies, as previousl set forth on
this website. Drudgereport: 'Where do the bailouts end?' [I feel compelled to
comment here that even capital hill math would be hard-pressed to justify
$26 billion taxpayer / treasury dollars they don’t really have, to save 300,000
state / local government jobs! After all, the nation is defacto bankrupt! ]
Bailouts benefited foreign firms (Washington Post) True enough! But, truth be
told, the fraud giving rise to the financial debacle was home grown
americana. Moreover, the remnants of same are still out there in the trillions,
now ‘marked to anything they so choose’, courtesy of a complicit, albeit
after the fact, congress. This is the point … rather than as should have been
the case of making the perps pay, the bailouts / cover-ups by now enablers if
not accomplices is ending quite badly with much worse to come, and that
includes those european lightweights who have come into the fraudulent
wall street fold to theirs and the world’s economic and financial detriment.
U.S. trade deficit startles markets (Washington Post) [ Unexpectedly? I don’t think
so! And, I have my site, other references / links and posts to prove it; and, what’s
more, I’m not alone. After all, what are NAFTAs for anyway. However, I also must
candidly admit I don’t frequent the mainstream blather / propaganda that includes
the ‘money-honeys’ (when the messenger’s more important than the message,
problems and distortions are bound to follow) and their ilk, etc.. NBR’s about it
and even they have their pressures (I don’t consider the Washington Post
mainstream in the pejorative sense of the word, with a rich journalistic history to
back that up, all things considered) ]. Unexpectedly bad news from three
continents reinforces fears that global recovery is faltering.
Obama signs $26 billion jobs bill (WP) [I feel compelled to comment here that
even using capital hill math one would be hard-pressed to justify $26 billion
taxpayer / treasury dollars they don’t really have, to save 300,000 state / local
government jobs! After all, the nation is defacto bankrupt! I think the former
Soviet Union would have done the same.]
Fed action signals new activism (Washington Post) [ Riiiiight! The activist fed!
That’s all we need. As if we needed more of what brought us to this point!
Certainly the fed’s role in the continuing and current financial crisis / debacle
cannot be ignored or disputed. Nothing like a hegelian methodology to create the
very problems for which they are called upon to offer solutions, increasing their
sense of importance, and concentrating power thereby. (Think about it. It is really
rather quite absurd that each meeting time the financial markets hold their bated
breath for these incompetent boobs). Then there’s the cover-up with an
opportunity for enrichment of some, usually the tight-lipped yes-men then ever
after and forever bonded in what becomes tantamount to an almost fraternal link
by ‘virtue’ of the crime thereby. No, I’m not saying their initial missteps were
necessarily badly intended, but the manipulations thereafter to obfuscate their
incompetence (senile greenspun, no-recession-helicopter-ben, etc.) comes at a
great price and is nothing less than tantamount to or just outright crime. I’d
abolish the fed without hesitation or compunction. After all, at this point of
decline and defacto bankruptcy of the nation you certainly can’t point to success
nor argue their indispensability. Then there’s also the missing trillions, over-
printing of fiat currency, and all that sub rosa activity with the worthless
fraudulent toxic paper which I believe is being supplanted with ultimately hard
currency to the great benefit of the frauds and great detriment to the nation.]
ACCORDING TO TECHNICAL INDICATORS, MELTDOWN IS POSSIBLE Simon

Maierhofer A SOLID TRACK RECORD An analysis of the SMA crossover buy/sell
signals triggered for the S&P over the past 10 days shows that six of the eight
signals (75%) were correct. ..LAGGING BUT ACCURATE Many dismiss the 200-
day or other SMAs as lagging indicators. Although an indicator may be lagging it
doesn't mean it's incorrect or should be dismissed… Even though a lagging
indicator, the rain does confirm that a storm is coming. A PRO-ACTIVE
APPROACH You'd expect Wall Street and the financial media to be the financial
weather man and warn you of upcoming storms. Unfortunately, that is not so.
Leading up to the April 2010 recovery highs, Wall Street and the media
proclaimed the skies are clear, 'sunny throughout the year' was their weather
forecast. Only after investors got drenched, did Wall Street recommend pulling
out the umbrella. Sure enough, as soon as the umbrellas came out, stocks
switched into rally mode and the sky cleared up. Unlike Wall Street, the ETF Profit
Strategy Newsletter warned of the brewing storm while it was still sunny. On April
16, the newsletter warned that 'historically, there has rarely been a more
pronounced sell signal ... When consumers spend, they do so with credit cards.
Visa and Master Card both got hit with a death cross. It's just a matter of time
until the discretionary sector follows. WAIT, THERE IS MORE …High copper
prices are reflective of high demand and a humming economy. Lower copper
prices signal trouble ahead. On June 22, an ominous death cross visited copper's
chart. PUTTING THE ODDS IN YOUR FAVOR Investing is a game of probabilities.
While you always want to have the odds in your favor, you never want to bet
against the odds. Right now, the odds are piling up on the bearish side of the
ledger. Even though Wall Street is saying that the sky has cleared up,
'meteorologists' with a better track record are warning of the storm ahead. In fact,
there is one rare chart formation that strongly suggests the onset of a 2008-like
decline, a development that's certainly supported by the number of death crosses
spanning a variety of markets. The August issue of the ETF Profit Strategy
Newsletter includes a detailed short, mid and long-term forecast, along with the
one chart that tells the market's story and true bearish potential.
Congressman Calls Vote on $26 Billion Jobs Bill a Sign ‘We’re Not Bankrupting
the Country Fast Enough’ With a tone of sarcasm, a California Republican
congressman said that he “knows” why members of the U.S. House of
Representatives were summoned from their home districts back to
Washington, D.C., and the halls of Congress.
U.S. Is Bankrupt and We Don’t Even Know Bloomberg | Let’s get real. The U.S. is
bankrupt. Neither spending more nor taxing less will help the country pay its
bills.
Crowd waiting for housing vouchers gets rowdy Atlanta Journal-Constitution | A

crowd of people hoping to get federal housing assistance became unruly
Wednesday morning with reports of fights breaking out in the crowd.
Californians’ income falls for first time since WWII Sacramento Bee | The personal
incomes of Golden State workers fell by that amount in 2009 compared with the
previous year.
Google-Verizon Pact: It Gets Worse [ Timothy Berners-Lee, putative father of the

internet along with Cerf, has already weighed in on this topic and strenuously
opposed same and whose learned opinion should be given great weight. google
and verizon as mere government shills at best and government, ie., nsa / cia, etc.,
operatives at worst, are ‘johnny-come-latelies’ and died fast in government
hands! ]. So Google and Verizon went public today with their “policy framework”
— better known as the pact to end the Internet as we know it.
San Francisco Fed: “A Recessionary Relapse Is A Significant Possibility

Sometime In The Next Two Years” [ Picture the fed as a pseudo ninja with
fancy foreplay / motions getting decked / ‘koed’ with a simple right-hook to
the jaw by the antagonist named reality. All this finagling, manipulation, fiat
currency over-printing, and nation bankrupting debt, and … nothing / nada /
‘growth ‘ estimates revised downward, unemployment unabated since
economic reality figures somewhat in hiring to say the least, and jobs
transferred overseas ain’t comin’ back. Quite simply, this is a depression no
matter what they call it! ] Presented without commentary, suffice to say that
idiots who look at the LEI and factor for the curve inversion subindicator
deserve all they get.
Peter Schiff: “We’re in the Early Stages of a Depression” The Motley Fool | Four
years and the worst recession since the Great Depression later, Schiff
stands alone again with a bleaker diagnosis for the economy: an inflationary
depression.
Democrats, Advocacy Groups Blast Cuts to Food Stamps to Fund $26B Aid Bill
Some Democrats are upset and advocacy groups are outraged over the
raiding of the food-stamp cupboard to fund a state-aid bailout that some call
a gift to teachers and government union workers.
15 Economic Statistics That Just Keep Getting Worse A little over a week ago,
U.S. Treasury Secretary Timothy Geithner penned an article for the New York
Times entitled “Welcome To The Recovery” in which he touted the great
strides that the U.S. economy was making.
America Is ‘Bankrupt Mickey Mouse Economy’: CIO America is a “Mickey Mouse

economy” that is technically bankrupt, according to Jochen Wermuth, the
Chief Investment Officer (CIO) and managing partner at Wermuth Asset
Management.
DRUDGEREPORT: America Is 'Bankrupt Mickey Mouse Economy'...

Grim Voter Mood Turns Grimmer...
Claims of Afghan civilian deaths spark protest...
Military sees heavier fighting in fall...
PAPER: 10 reasons why Obama presidency is in meltdown...
GALLUP: Even the Poor Are Abandoning Obama; Approval Under 50%...
Obama abolishes White House position dedicated to transparency...
Michelle Obama popularity falls...
UPDATE: Suspected serial killer arrested in Atlanta...
Attempting to flee to israel … to be with kindred spirits ...
MOB RUSH FOR FED AID DRAWS RIOT POLICE
DOW drops 265...
Feds rethink policies that encourage home ownership...
Obama: $3 Billion More in Aid for Unemployed...
US posts widest trade gap in 20 months...
Q2 GDP Growth Could Be Revised To Just 1% After Trade Data...
PUMP: FED TO BUY MORE DEBT...
DOWNGRADES OUTLOOK...
US-backed fighters in Iraq defect to al-Qaida... [Winning hearts and minds … for Al Qaida
… just one too many civilian deaths for no good reason at all ]
BACK TO SPEND SOME MORE!
Republicans Suggest Names for 'Second Stimulus' Bill...
'Where do the bailouts end?' [I feel compelled to comment here that even capital
hill math would be hard-pressed to justify $26 billion taxpayer / treasury dollars
they don’t really have, to save 300,000 state / local government jobs! After all, the
nation is defacto bankrupt! ]
9 Reasons Why You Won’t See A Jobs Recovery Anytime Soon In two
words: small businesses.
Federal Employees Earn 30 to 40 Percent More than Private-Sector Workers,

Study Finds Federal employees earn 30 to 40 percent more money than their
private sector counterparts on average, a study from the conservative
Heritage Foundation finds.
The Oil Price Surge Indicator Says There’s A 100% Chance Of A New Recession
No, that headline is not a typo.
Gerald Celente On the Alex Jones Show: Double Dip Depression Will Lead Us Into
War The white shoe boys are taking us into the worst depression in history.

economic doom on a scale not seen since the 1930s.
Ambac says it's working on bankruptcy filing MBIA Inc. reports a quarterly
profit, while rival bond insurer Ambac Financial Group posts a loss....
Food Inflation Coming To A Household Near You, As Wal-Mart Hikes Prices At

Fastest Pace Since Early January Nothing to see here, except yet another
sign of the food inflation that’s the story of the moment.
Albert Edwards Explains How The Leading Indicator Is Already Back Into
Recession Territory And Why The Japan “Ice Age” Is Coming Albert
Edwards reverts to his favorite economic concept, the “Ice Age” in his latest
commentary piece, presenting another piece in the puzzle of similarities
between the Japanese experience and that which the US is currently going
through.
The Horrific Derivatives Bubble That Could One Day Destroy The Entire World
Financial System Today there is a horrific derivatives bubble that threatens
to destroy not only the U.S. economy but the entire world financial system
as well, but unfortunately the vast majority of people do not understand it.
Fed set to downgrade outlook for US Financial Times | The Federal Reserve is
set to downgrade its assessment of US economic prospects.
Goldman Made Between $11 And $16 Billion In 2009 Trading CDS And Other
Derivatives As part of its most recent FCIC grilling, David Viniar left the
political theater a month ago with a homework assignment to disclose all of
the firm’s derivative profits, as well as provide granular detail on its
derivative trades.
Japan Redux: A Video Case Study Of The Upcoming U.S. Lost Decade Whether
one believes in inflation or deflation, one thing is certain: in many ways the
current US experience finds numerous parallels to what has been happening
in Japan for not one but two decades.
Pentagon can’t account for $8.57 billion in Iraqi funds B is for billions. And b is
for it’s hard to believe that they’ve done it again. The last time, even more
money vanished, which I noted in my article, Following Pentagon trillions to
Israel and 9-11. This was under the Zionist Dov Zakheim’s watch as
Comptroller of the Pentagon from May 4, 2001, to March 10, 2004.
Wall Street bill sweeps away stray remnant of 1933 Glass-Steagall Act In seven
simple lines buried in this year’s financial overhaul bill, lawmakers swept
away one of the last vestiges of the 1933 Glass-Steagall Act that held sway
over markets for decades.
Small firms pay price of bank boom: As bankers celebrate more profits, more
companies die from lack of loans Small businesses are paying the price for
the banks’ dramatic return to bumper profits.
Dollar approaches 15-year low against yen The dollar plunged to a fresh eight-
month low against the yen after US employment data disappointed
expectations, raising the prospect of looser monetary policy from the
Federal Reserve.
Riiiiight! That ‘no-longer looking’ dynamic that saves the day and the ue rate at
9.5%. At this rate of progress, and according to their thinking and manipulations,
full employment at an unprecedented 0% unemployment is just around the corner
as everyone stops looking for the jobs no longer here, many of which were sent
overseas and which are not coming back owing to substantial economic
structural / financial shifts.
Jobs Report: Companies Slow to Hire ABC News - Only about 8 percent of the
8.4 million jobs lost at the peak of the recession have been recovered, leaving
millions of Americans still looking for work, according to an analysis by ABC
News' Business Unit. Video: News Update: US Unemployment Rate Holds at
9.5%, 71,000 Jobs Added in June SmarTrend News 71K more jobs not
enough to dent unemployment rate The Associated Press
When perusing the headlines and the following, I immediately thought ‘between
Iraq and a hard place (Afghanistan and america’s defacto bankruptcy)’:
Between a Rock and a Hard Place Jerry Slusiewicz ‘Everyone knows that being
between a rock and a hard place is not a good place to be. That is where the
market is right now. We continue to have terrible news in the housing sector.
There is no general economic recovery as of yet. Jobless claims continue to
mount, while net new jobs are not being created in a significant enough number
to even sustain the population growth (approximately 150,000 net new jobs per
month needed). By far the majority of economic reports for May, June, July, and
now August, have been worse than forecast. That includes home starts, home
sales, home-builder confidence, retail sales, auto sales, consumer confidence,
durable goods orders, manufacturing, jobs, etc. Yet the market rallies or barely
goes down on these bad reports. What gives? It seems that bad news is good
news right now…
Social Security in the red this year Washington Times | Meanwhile President
Obama’s health care overhaul has given Medicare’s basic Hospital
Insurance an extra 12 years of financial stability, though it did not solve all
of the program’s long-term challenges.
U.S. Employers Shed Jobs WSJ | he U.S. economy shed more jobs than expected
in July while the unemployment rate held steady at 9.5%, a further sign the
economic recovery may be losing momentum.
Impoverished U.S. City Will Close Libraries Mob infested, pervasively corrupt
jersey’s most impoverished city will close all three branches of its public
library at year’s end unless a rescue can be pulled off. Camden’s library
board says the libraries won’t be able to afford to stay open past Dec. 31
because of budget cuts from the city government. The city had its subsidy
from the state cut.
Federal Reserve.
IRS To Withhold Indicator That Shows Refunds Owed To Taxpayers Think of all
the budget savings from the ever increasing lack of transparency.
Visualize Your State’s Financial Collapse Better Than Ever Just because wishing
away local and state financial collapse doesn’t work quite as well as it does
at the Federal level (courtesy of everyone’s favorite printer genie), attached
is a terrific interactive chart.
Stepping Aside Because I Can Always Buy Back In Leigh Drogen ‘I sold out of
everything this morning, for a few reasons…First, breakouts don’t always work
and momentum stocks have a habit of ending their trends abruptly.
Second, …I can buy back in this afternoon if I change my mind (not likely). I see
more risk to the downside here than I do to the upside. …Third, the jobs number
tomorrow scares me. No, it doesn’t matter what the number is, we all know it’s
going to be bad, what matters is how the market reacts, and I have the feel it’s not
going to be good. Fourth, many of my oscillators are overbought here.Fifth, and
finally, I don’t like the fact that this rally has primarily taken place on the back of
the most beaten down sectors. …It all just doesn’t pass the smell test for me. I’ve
been successful at this not because I’m always right, but because I know when
I’m wrong and I’m willing to change course or step aside. Right now, I’ll step
aside.’
Were Unemployment Claims Really So 'Unexpected'?
Food stamp use hit record 40.8m in May The number of Americans who are
receiving food stamps rose to a record 40.8 million in May as the jobless rate
hovered near a 27-year high, the government reported yesterday.
Journalists Still Hiding Obama’s Broken Promises on Jobs On Aug. 6,

everyone’s attention will be fixed on the release of July’s unemployment
numbers. The national unemployment rate is forecast to increase to 9.6
percent, according to Bloomberg News’ survey.
Gold Alternative To Debt and Market Manipulation The Keynesians are on the
edge of implementing more quantitative easing (QE) as we predicted they
would.
11 Reasons Why The Federal Reserve Is Bad Millions of Americans are waking
up to the fact that the Federal Reserve is bad, but very few of them can
coherently explain why this is true.
WE’RE UNDERESTIMATING THE BEARISH POTENTIAL Simon Maierhofer,

August 3, 2010
’… Will Anything Stop the Market? Something Did
… At the same time, the April numbers were lowered the second time by an
additional 24,000 units, while May sales were revised lower by 33,000 units. To
summarize, April and May sales were reduced by 57,000 units. Therefore, June
sales were 24% above May sales. By the way, May sales were the lowest on
record…
Treasury Secretary Timothy Geithner: Unemployment Could Go Up Before It
Comes Down [Ooooh! Sounds like a plan ‘tiny tim’! … God bless us
everyone! ] Treasury Secretary Timothy Geithner acknowledged that it is still
a “tough economy” for most Americans, and warned it’s possible the
unemployment rate will go up for a couple of months before it comes down
as more people enter the labor force.
China Officially Enters The Gold Market: Full Release Of PBoC’s Plan To Expand
And Develop China’s Gold Infrastructure The moment many gold bulls have
been waiting for – the Chinese Central Bank has just released a directive
informing everyone it is commencing the development of a healthy gold
market.
The Dollar Continues To Fall Like A Knife, As Euro Breaks Well Above $1.32
Another violent change of direction from what we’ve come to expect from
the euro and the dollar.
22 Statistics About America’s Coming Pension Crisis That Will Make You Lose
Sleep At Night As the first of the 80 million Baby Boomers have begun to
retire, it has become increasingly apparent that the United States is facing a
pension crisis of unprecedented magnitude.
Americans who swap passports London Telegraph | At the US Embassy in

London, there is a waiting list that none of the officials likes to discuss. At
the US Embassy in London, there is a waiting list that none of the officials
likes to discuss. On the list are Americans hoping to give up their
citizenship… (sure sign of insanity … I mean, Orwellian england of all
places?)
Temporary Firehouse Closures Begin In Philadelphia CBS 3 | The city of

Philadelphia has started temporarily closing fire stations in order to balance its
budget.
Layoffs to gut East St. Louis police force St. Louis Dispatch | East St. Louis will
layoff 37 employees, including 19 of its 62 police officers.
Come on! Who are they kidding? All the data was bad, and that ‘not bad as
expected dog don’t hunt anymore’!
They’re losing their minds in china:

Silicon Alley Insider: ‘… The first big economic news of the week was the
Chinese PMI which indicated that Chinese manufacturing was inching ever
closer to contraction. But contrary to the expectations of some, it did not
spook investors. In fact, Asia had a very big night, with Shanghai gaining
about 1.3% …’;
europe:
the basket-case eu economy, with obfuscation taken directly out of the
fraudulent wall street playbook including fake stress tests, saw air ball stock
rally based on earnings data long ago discounted;
u.s.:
We already know they’re criminally insane on wall street! Yahoo: ‘…The
mood improved further still after the ISM Manufacturing Index for July came
in at 55.5. That may have marked a pullback from the 56.2 of June, but it
exceeded the 54.2 that had been widely expected ...’
Oh, yeah … there’s also the higher oil prices, ever more worthless Weimar dollar
part of the rally, and so on!
This is an especially great opportunity to sell / take profits since there is much
worse to come!
Warning Signs Suggest Market Headed for Another Collapse … One can find no
shortage of fundamental or mechanical theories explaining what might form the
basis of a future financial collapse published at Zero Hedge, by Nassim Nicholas
Taleb, Nouriel Roubini or Karl Denninger. In fact, I buy into a lot of the evidence
presented by these sources, and believe that one gains a better grasp of financial
reality spending 10 minutes with Zero Hedge than spending 2 weeks listening to
the mainstream financial media. It is laughable to compare the vacant drivel
coming out of Dennis Kneale to even one single article published by Tyler Durden
or Ryan Iskander…
1. HEAD & SHOULDERS ON THE S&P 500, DOW JONES, AND NASDAQ …
2. BULLISH FLAG ON THE VIX? We can’t have a massive spike in volatility

without a coinciding collapse in the equity markets …
3. THE DEATH-CROSS ON THE S&P SUGGESTS THE 2009 TO 2010 RALLY MIGHT
BE OVER
4. THE VOLUMELESS RALLY & MUTUAL FUND OUTFLOWS

…
5. 1,000 POINT FLASH CRASHES

…
6. BOND MARKET DISTRUSTFUL OF THE RALLY
…
7. MARKET LEADERSHIP IS WEAKENING

[chart] … ‘
INSIDER TRANSACTIONS (Washington Post) This is a global depression. This is a


instead of 2010.
latest.
2010 and 2012
Why Must The Media Keep Trotting Out Senile Incompetent greenspun And His
Economic Lunacy? …and we continue to talk ourselves off the edge of the
cliff. For the second week in a row Meet The Press trotted out the most
financially incompetent of the financially incompetent and placed them on
their undeserving pedestal.
Key Components Of America’s Military Are Now Dominated By A Chinese

Monopoly Most of America’s key military technologies require rare earth
elements, whose production China holds a near-monopoly over.
alan greenspan: “The Financial System Is Broke” We will be in deflation until the
broke financial system becomes unbroke… and then we will have
hyperinflation. [Little bit late to be talkin’ the obvious truth!]
Trying to make August less of a 'dog' with sidewalk sale (Washington Post)
Sounds like a new, new plan to deal with the overwhelming success of the
panoply of government stimulus / tarp, etc., plans ‘financed’ with money
they don’t have and taxpayer ‘largesse’. For those who’ve lived long enough,
they’re waiting for the apple carts.
Did TARP work? Two economists say yes. (Washington Post) Come on! What do
you expect them to say? They’re invested in that position having supported
same despite the massive fraud for prosecution and disgorgement was
appropriate. Indeed, moody’s itself has been faulted (liable?) for lax
valuation / rating standards which contributed to the debacle. Moreover,
these ‘cheerleaders’ can always be counted on to toe the network line which
ultimately enables the ubiquitous frauds we’ve seen. Amazingly, senile
incompetent greenspun, co-architect / enabler of the fraud / debacle was
interviewed and used such words in conjunction as ‘modest recovery,
pause, double-dip possible, quasi recession’. What total b***s***!
Are the American people obsolete? Salon | The richest few don’t need the rest of
us as markets, soldiers or police anymore. Maybe we should all emigrate.
What's coming this week (Washington Post) How ‘bout last week and the new
american economic institution colloquially now known as ‘bank failure Friday’ (the
news dump so as to avoid the so-called ‘news cycle’). Then, let’s hope for real
rather than election-year market frothing fake / false / manipulated data.
U.S. bank failures total 108 after 5 shut on Friday U.S. bank failures reached 108
so far in 2010 on Friday as regulators seized five small banks in the Pacific
Northwest and the Southeast, none publicly traded.
Foreclosures Continue To Dramatically Increase In 2010 Economic Collapse |

RealtyTrac says that unemployment has become the major reason for
foreclosures. In a very alarming sign for the U.S. economy, foreclosures
have continued to dramatically increase in 2010. But there has been a shift.
U.S. recovery hopes fade as economic growth dips Washington Post | The
recovery is fading, and a troubling new pattern is setting in: economic
growth that is too slow to put Americans back to work. The recovery is
fading, and a troubling new pattern is setting in: economic growth that is too
slow to put Americans back to work.
Ron Paul Goes After The SEC’s FOIA Exclusivity, Introduces SEC Transparency
Act What is unclear is whether the Ron Paul law prohibts SEC staffers to
spend 40 hours per week to browse porn on the taxpayer’s dime.
U.S. recovery hopes fade as economic growth dips The recovery is fading, and a
troubling new pattern is setting in: economic growth that is too slow to put
americans back to work.
Stocks' Late Push: Some Optimism, Some Pessimism [Late push … as in a

constipated bowel movement … Come on! Another one of those push the
computer programmed trade button and off we go, reality / valuation / economics
be damned. In real security analysis (very simplified / summarized), as opposed
to the continued frauds on wall street, one must begin with the largest and most
significant aggregate (a simple word picture / analogy: ‘rising tide lifts all boats’).
If you get this right, the probabilities in your favor are substantially enhanced.
From there, you want leading industries, and leading companies within said
leading industries (again, larger aggregates then picks, to enhance probabilities,
not guarantees, in your favor). Your time frame, 1-3-5 yrs tops for projections,
(including income statement/EPS, balance sheet, and applying an appropriate P/E
– a detailed, multi-faceted approach beyond what could be described in this
summary); and, that’s all they are, projections. Beyond that time frame, your
guess. On fraudulent wall street, every day, though already discounted in large
part (6-8 mos, approx.), the market spins, churns, and with lightning fast
computerized high-frequency trade programs commissions in huge volumes like
no other time in financial history when real valuation meant something, with no
net economic value added, but very lucrative to the frauds on wall street, which
reality despite the election year frothing / manipulations. This is a global
Slowing economic rebound raises unemployment fears (AP) [Wow! Talk about
understatements!]
China Becomes Second Biggest World Economy China has overtaken Japan to
become the world’s second-largest economy, the fruit of three decades of
rapid growth that has lifted hundreds of millions of people out of poverty.
Hank Paulson Wants To Fix Fannie And Freddie By… Recreating Fannie And
Freddie Former Treasury Secretary, Goldman Sachs CEO, and bailout
architect Hank Paulson has a bit of a head-scratcher of an op-ed in the
Washington Post this evening all about charting a course for sustainable
housing policy in the US.
Marc Faber Questions if Dow Could Hit 1,000 In the August edition of the ‘The
Gloom, Boom & Doom Report’ Marc Faber questions whether the Dow could hit
1,000 as predicted by Robert Prechter, based on his interpretation of Elliot
Waves, Fibonacci numbers and socioeconomic trends. Prechter, who has written
13 books on finance (external link), believes that the stock market is historically
overvalued in terms of dividends and earnings, because of a “great rise in
positive social mood.” But the mood changed in 2000 and the “trend toward
negative social mood will lead to an economic contraction,” according to
Prechter. “Small bear markets lead to recessions, big bear markets lead to
depressions. The current bear market will be the biggest in nearly 300 years, so
the depression will be correspondingly deep,” Prechter said.
The International Money Changers Reward the Euro for Forcing Austerity Activist
Post | The growing noise for “solutions” to America’s very real debt
problems is becoming louder as the calls for confiscating Social Security
and Pensions are now everyday news.
Wall St falls after weak outlooks drag (Reuters) U.S. stocks sagged in volatile
trading on Thursday after weak outlooks from technology companies and
downbeat comments from a Federal Reserve official gave investors little reason
to buy.
US Treasury is running on fumes The White House is screaming like a stuck pig.
WikiLeaks’ release of the Afghan War Documents “puts the lives of our
soldiers and our coalition partners at risk.”
Trillions for Wall Street Mike Whitney | The bottom line? When Wall Street is
hurting, money’s never a problem.
Look What Surprises They Snuck Into The Financial Reform Bill The Economic
Collapse | The financial reform bill was supposed to “fix” Wall Street and the
financial system, but it did not do much of anything. Even just a decade ago,
major pieces of legislation in the U.S. Congress would be just a few dozen
pages long. But today, it seems like every time Congress passes an
important bill it ends up being over a thousand pages long.
Cash-starved California orders unpaid leave for workers California Governor

Arnold Schwarzenegger declared a fiscal state of emergency Wednesday,
requiring most state employees to take three days of unpaid leave per month
until a new budget is enacted.
The Obama Administration Tries To Propagandize Its Way To An Economic

Recovery Yesterday we noted how, absurdly, The White House blog was
trumpeting a new cheap housing program as part of its recovery efforts.
Fed says some districts report slowing economy (Reuters)
Flaws of the European Stress Test … 'Bank stress test' became the magic
phrase. Nothing calms fear like a stress test that's labeled as rigorous. The stress
test raises a few very obvious questions: 1) Will it work? 2) Why was it needed in
addition to a $1 trillion aid package? 3) Is the stress test just a gimmick to
appease investors? The stress test is conducted by the London-based Committee
of European Banking Supervisors (CEBS). Ironically, the test has ignored the
majority of banks' holdings of sovereign debt. Sovereign debt concerns by the
so-called PIGS countries (Portugal, Italy, Greece, and Spain) triggered the latest
wave of financial problems. Ignoring sovereign debt in the Euro stress test would
be like ignoring toxic real estate assets in the U.S. 10% Good - 90% Bad
According to a Morgan Stanley survey, European banks hold about 90% of their
Greek government bonds in their banking books and 10% in their trading books.
The bonds in the banking book are generally held until maturity, the bonds in the
trading book are traded more frequently. According to a document obtained by
Bloomberg, the stress test assumes a loss of 23.1% on Greek debt, 14% on
Portuguese bonds, 12.3% on Spanish debt, 4.7% on German debt, 10% on U.K.
debt, and 5.9% on French debt. However, the stress test only looks at the bonds
held in banks' trading books, which account for a mere 10% of Greek bond
holdings. Can that be called a stress test? Nouriel Roubini says that 'the
assumptions made about economic growth, about sovereign risk are not realistic
enough.' The fact that only seven banks failed the test with a combined shortfall
of $4.5 billion confirms the lax nature of the test. … The U.S. Bank Stress Test - A
Nice Façade A closer look under the hood of the U.S. bank stress test, however,
shows that there's not much substance behind the facade either. It was
determined that the 19 tested U.S. banks need to increase their balance sheets by
$75 billion to meet the conditions of what's termed the 'worst case scenario.' To a
large extent, the $75 billion of additional capital was financially engineered.
Banks didn't have to actually raise $75 billion. They were able to change the label
of some of their assets on their balance sheets. The government supported this
practice via mandatory convertible preferred shares (detailed analysis in May
2009 issue of the ETF Profit Strategy Newsletter) …’
SEC Says New FinReg Law Exempts It From Public Disclosure So much for
transparency.
Regulatory Magic President Obama has signed the financial industry regulatory
overhaul — officially, the Dodd-Frank Wall Street Reform and Consumer
Protection Act. Predictably, what he said about it cannot possibly be true.
Jim Rogers Calls CNBC A Market PR Agency Whose Sole Purpose Is To Make
Stocks Go Higher A “cheeky” Jim Rogers appeared earlier on CNBC Europe
(which incidentally is orders of magnitude better than its US equivalent), and
confirmed the depths to which the once relevant and informative TV station
has now fallen.
Flashback: Bush report: Sending jobs overseas helps U.S. The movement of
American factory jobs and white-collar work to other countries is part of a
positive transformation that will enrich the U.S. economy over time, even if it
causes short-term pain and dislocation, the Bush administration said
yesterday.
Smoking Guns of U.S. Treasury Monetization Kitco | A significant feature of fiat

money systems is the privilege for the custodian of the reserve currency to
engage in regular practices of ham-fisted monetary management.
Banking Disaster Largely Ignored By Mainstream Media Greg Hunter | It is

amazing to me how little time the mainstream media is spending on this
unfolding financial disaster and how much time it is devoting to things like
Mel Gibson’s domestic problems.
Moody's: Regional banks on review for downgrade (AP)
Consumer confidence dims (Reuters) Job worries drove July U.S. consumer
confidence to its lowest since February, with one in six people expecting lower
income in the next six months, underscoring the precarious state of econo...
Global steelmakers paint gloomy picture (Reuters)
State budget gaps total $84 billion: study
Another Recession Due Circa 2012: Jim Rogers A new recession would be due
around 2012 but central banks will not be able to throw cash at it anymore,
Jim Rogers, chairman of Rogers Holdings, told CNBC Tuesday.
Marc Faber: Relax, This Will Hurt A Lot Marc Faber closed out this week’s Agora
Financial Symposium with a speech that pretty much recapitulated the view
that the end of the world is if not nigh, then surely tremendous dislocations
to the existing socio-political and economic landscape are about to take
place (with some very dire consequences for the US).
The Continuing Crisis in the New World Order LewRockwell.com | The crisis
continues in the new world financial order with no end in sight and no real
solution being put forth.
China Calls Our Bluff: “The US is Insolvent and Faces Bankruptcy as a Pure
Debtor Nation but [U.S.] Rating Agencies Still Give it High Rankings”
America’s biggest creditor – China – has called our bluff.
US bank failures in 2010 surpass 100 WASHINGTON (AP) -- U.S. bank failures
this year have surpassed a bleak milestone of 100 as regulators shut down banks
in Georgia, Florida, South Carolina, Kansas, Nevada and Minnesota. The six bank
seizures announced Friday bring to 102 the failures so far in 2010. The pace of
bank closures this year is well ahead of that of last year, which saw a total 140
bank shuttered amid the recession and mounting loan defaults …
On the Disconnect Between the Market and the Economy Michael Shulman:
• The index of leading economic indicators fell 0.2% in June, the second
drop in three months. A negative surprise.
• Unemployment claims rose to 464,000, more than expected.
• Uncle Ben said we are facing a period of “unusual uncertainty.” No kidding.
• Uncle Ben said we need continuing stimulus to a Congress unwilling to

stimulate anyone or anything other than lobbyists with cash to contribute.
• Home sales fell 5.1% in June…’
(No recession helicopter ben) Bernanke Admits Major Policy Failures; Stocks
Soar Darryl Montgomery What's wrong with this picture? In his bi-annual
testimony before Congress yesterday, Fed Chair Ben Bernanke admitted that
after more than a year and a half of zero interest rates and $3 trillion in federal
deficit spending since 2008, the best case scenario for the U.S. economy is slow
growth and high unemployment. The S&P 500 is up 2.5% so far this morning on
this 'good' news. Bernanke's congressional testimony included the following
statements (emphasis added by me):
"Most [FOMC] participants viewed uncertainty about the
outlook for growth and unemployment as greater than
normal, and the majority saw [at the June Fed meeting]
the risks to growth as weighted to the downside."
"Financial conditions--though much improved since the

depth of the financial crisis--have become less
supportive of economic growth in recent months."
"Many banks continue to have a large volume of

troubled loans on their books, and bank lending
standards remain tight. With credit demand weak and
with banks writing down problem credits, bank loans
outstanding have continued to contract."
"After two years of job losses, private payrolls expanded

at an average of about 100,000 per month during the
first half of this year, a pace insufficient to reduce the
unemployment rate materially. In all likelihood, a
significant amount of time will be required to restore the
nearly 8-1/2 million jobs that were lost over 2008 and
2009."…
Serious Analysis has given rise to a realistically mocking view of the

current fraud on wall street:
The Markets & The 'Teen Drama Economy' Jonathan Cheng If the market’s mood
swings these days are reminding you of high school, you’re not alone ...
NATIONAL / WORLD
For Obama, some chances ahead (Washington Post) [ Come on! Wake up! There
offer president opportunities to help end a frustrating summer.

beyond control...

Trends ]

Obama as a Marxist.
February 11, 2009
investigation.

Bombshell: Barack Obama conclusively outed as CIA creation Wayne Madsen |

Investigative journalist Wayne Madsen has discovered CIA files that
existence for good.
Constitution “Silly Stuff,” Says Illinois Congressman Democratic Congressman

Phil Hare, who caused outrage earlier this year when he told constituents
who asked him about the legality of the health care bill, “I don’t worry about
the constitution,” has sparked fresh consternation after he was caught on
camera in an Illinois hotel labeling the founding document of America “silly
stuff”.
Ehrlich and Holdren: Death “Reasonable Price to Pay” for Well-being of Society
Jurriaan Maessen | The head-hunters of the scientific dictatorship are not
simply powerless psychopaths exchanging abstract ideas.
US-Vietnam Military Drills Crank Up Tensions With China The U.S. Navy just
began military exercises with Vietnam in the South China Sea and China,
which had in the past been more accepting of the U.S.’ naval power in the
region, is now showing its anger, according to The Asia Times.
Poll: ‘No’ to US wars at all time high A new opinion poll says the number of
Americans opposed to the US wars in Afghanistan and Iraq is at an all time
high.
Ground Zero Mosque Imam Is Globalist Stooge Steve Watson | CFR member
receives financial backing from who’s who of global corporate elite.
Alex Jones and MSNBC’s Hit Piece: The Lost Footage Infowars.com | The “rest of
the story” found its way on YouTube and Alex Jones’ Facebook page.
Two Films That Blew Bilderberg Wide Open Paul Joseph Watson | Fidel Castro’s
spotlight on the Bilderberg clique is part of a global awakening to the new
world order.
Zionist Lobby Paid Off U.S. Journalists To Sell Israeli Foreign Policy Paul Joseph
Watson | Declassified documents take on deeper significance in light of
Jeffrey Goldberg and The Atlantic Monthly’s efforts to propagandize for an
attack on Iran.
The Ground Zero Mosque and Property Rights Kurt Nimmo | The issue is not
terrorism or 9/11, but the sanctity of the individual and his property.
Orwell in charge? Kucinich compares Iraq ‘exit’ to Bush’s ‘Mission

Accomplished’ “Who is in charge of our operations in Iraq , now? George
Orwell? A war based on lies continues to be a war based on lies. Today, we
have a war that is not a war, with combat troops who are not combat troops.
In 2003, President Bush said ‘ Mission Accomplished ‘ . In 2010, the White
House says combat operations are over in Iraq , but will leave 50,000 troops,
many of whom will inevitably be involved in combat-related activities.
High-tech carts will tell on Cleveland residents who don’t recycle … and they face
$100 fine The chips will allow city workers to monitor how often residents
roll carts to the curb for collection. If a chip show a recyclable cart hasn’t
been brought to the curb in weeks, a trash supervisor will sort through the
trash for recyclables.
Zionist Lobby Paid Off U.S. Journalists To Sell Israeli Foreign Policy Newly
declassified documents highlighting how the Israeli lobby routinely paid off
journalists in the U.S. corporate media to write pro-Zionist propaganda in
support of Israeli aggression against Palestine and Iran during the 60’s have
taken on new significance after the Atlantic Monthly, which is named in the
documents as being complicit in the bribing scandal, recently published a
cover story hyping the necessity and inevitability of an Israeli attack on Iran.
CIA Launches “Counterproliferation Center” as Iran Attack Rhetoric Kicks Into

High Gear Kurt Nimmo | CIA will peddle propaganda required to sell the
increasingly irrelevant American people future wars.
Ron Paul: The American Empire Can’t Afford Another War Infowars.com | Alex
welcomes back Congressman Ron Paul to the show to discuss the latest on
Iran, legislation in the house, and more.
Air Force Issues Memo Warning Soldiers, Employees Not to Read WikiLeaks
Docs Kurt Nimmo | Memo confirms that the Pentagon is monitoring web
activity of its soldiers and employees.
9/11 Heroes Blast Obama: Forget The Mosque, We’re Dying Hero 9/11 first
responders, many of whom are sick and dying, have slammed Obama in an
open letter for ignoring their plight while taking the time to outline views on
a proposed mosque close to ground zero, the site of the 2001 attacks that
felled the twin towers.
Chaos Erupts in California as Over-Taxed Residents Express Outrage The city of

Bell, CA has recently been exposed for having corrupt and overpaid city
officials receiving salaries larger than the President of the United States.
Residents who have recently learned they were over-taxed to pay for the
government workers took control of a City Council meeting and demanded
resignations.
China Reacts Angrily To Pentagon Report Beijing reacted angrily Wednesday to

a Pentagon report expressing worries about China’s burgeoning military
capabilities, calling such concerns baseless.
In Supporting The Ground Zero Mosque, Barack Obama Falls On His Sword [ I
really wasn’t inclined to comment on this because it’s just not that big a deal
except as to exceedingly small minds. However, I feel I must say that if the
jewish Mayor of NYC who is certainly no slouch and really knows how to
count thinks it’s ok, then it’s OK. Period! ] With President barack obama’s
political dynasty already on life support, his decision to publicly back the
hugely unpopular building of a Muslim mosque near Ground Zero confirms
that Obama, or rather the advisors that pull his strings, have decided to
commit political suicide and cut him loose from the Washington power
structure, with the hope of fooling Americans with another establishment
Republican as a legitimate alternative in 2012.
Former Pakistani Intel Chief Fears World War Three Is Imminent Former Pakistani
General and intelligence chief Hamid Gul appeared on the Alex Jones Show
yesterday for a full hour in what turned out to be a fascinating extended
interview, addressing the major geopolitical issues that are shaping modern
history.
Neocon Bolton Renews Call for Israel to Bomb Iran Last Friday the former interim
UN ambassador during the Bush administration went on Fox News and
warned that if Israel did not conduct a bombing raid against Iran’s nuclear
energy program within a few days, the window of opportunity would be lost.
Bolton made his comment following a report last week that Russia will begin
loading nuclear fuel at Iran’s Bushehr reactor on July 21.
Google search: ‘bolton, neocon, mental problems’ About 143,000 results
(0.37 seconds)
Here’s the first of many pages. Yeah … he’s that bad / psychotic!
 Think Progress » John Bolton jokes about nuking Chicago, entire ...
Feb 26, 2009 ... Bolton, the NEOCON gift that keeps on giving the Repuglycans
zero ... The problem with McCain was this. As a veteran and a POW he get's high
marks. ..... to get some treatment at the closest mental health facility. ...
thinkprogress.org/2009/02/26/bolton-nukes-chicago/ - Cached - Similar
 Think Progress » Even After North Korea Frees American Journalists ...
Aug 4, 2009 ... Bolton, like all neocons, doesn't understand that there is ..... Of
course, we all know it was BUSH who caused the problem in the first place, right?
.... they view the world in the light of their own mental disorder, ...
thinkprogress.org/2009/08/.../bolton-north-korea-journalists/ - Cached - Similar
Show more results from thinkprogress.org
 Breaking: Neocon John Bolton Names Dick Cheney "Conservative Of ...
Dec 21, 2009 ... Re: Breaking: Neocon John Bolton Names Dick Cheney
"Conservati ... republicanism/conservatism is a mental illness that is killing
America and ... Problem is one side will shamelessly try and stack the deck in
their favor ...
crooksandliars.com › Blogs › Logan Murphy's blog - Cached - Similar
 John Bolton's Astonishing Neo-Neo-con Rewrite of History ...

Apr 17, 2007 ... On March 25, John Bolton was interviewed by BBC Newsnight's
Jeremy Paxman (video here). ... I think the real problem was in not relying more
on Iraqis. .... BTW, a mental giant, you are not. The best thing to happen to ...
www.democrats.com › Blogs › Bob Fertik's blog - Cached
 Bolton suggests nuclear attack on Iran « LobeLog.com
Bolton and his neo-con crazies aren't setting the agenda anymore, ... And I do not
mean the mental condition of Mr Bolton and his fellow neocons. ...
www.lobelog.com/bolton-suggests-nuclear-attack-on-iran/ - Cached - Similar
 Don't Hold Your Breath, Ambassador Bolton - Atlas Shrugs
May 26, 2009 ... It's a special kind of mental illness. ... Bolton has been derided as
"the neocon's neocon" who "laps up the hosannas of fellow ...
atlasshrugs2000.typepad.com/.../dont-hold-your-breath-ambassador-bolton.html -
Cached
 The BRAD BLOG : The Fall of the NeoCons: Bye Bye Bolton
Dec 4, 2006 ... Clyburn: E-Vote 'Hacked'; Rawl: 'Systemic Software Problems' ....
Add 'The Fall of the NeoCons: Bye Bye Bolton' to Del.icio · Add 'The ... The
Army's Lack of Mental Health Treatment for Returning Troops" NEXT STORY » ...
www.bradblog.com/?p=3873 - Cached
 Ambassador John Bolton: Israel Has 8 Day Deadline to Attack Iran ...
30 posts - 4 authors - Last post: 21 hours ago

"Religion is science for the mental ill" - Myself ... John Bolton is a Bush neo con,,,
obviously broke and needing the money. ...
www.godlikeproductions.com/forum1/message1163684/pg2
 [World Wide News Flash] Bolton
New article on darkpolitricks: Neocon Bolton Renews Call for Israel to Bomb Iran
http: darkpoltweeter (Dark Politricks RT): New article on darkpolitricks: ...
www.wwnewsflash.com/bolton
 [PDF]
The Neocon Factor in - The Zealots of Dominance: The Neocon Factor ...
File Format: PDF/Adobe Acrobat - Quick View

a sweeping diagnosis, it's clear that mental health has been a problem within ......
Neocon icon John Bolton, Bush's abrasive former Ambassador to the UN, ...
www.sf911truth.org/neocons.pdf
Ban Ki-moon’s Top Advisor: Scientific Elite Should Spearhead Global Population
Control “The fertility reduction and stabilization of population is crucial. He
(Sachs) concluded by urging for the adoption of a globally agreed action
plan at next year’s Summit to achieve the MDGs by 2015, and proposed to
form Working Groups with members of the delegations around particular
themes. He characterized this effort as not negotiation, but as global
problem solving and suggested that the Working Groups would brainstorm
on the globally agreed plan.”
Obama, the one-term president [ The fact is, as I’ve previously commented, he’s
ok with and has already accepted his one-term ‘being there’ failed
presidency which explains his huge divergence from his promised change,
among other promises and the false expectations he created thereby. He
lacks courage, of course; but that’s become so typically american and he’s
very typical. ] Q: Will Barack Obama be a one-term president? A: Yes, he
might last that long.
Dreaded Hindenburg Omen Will Play Out Within 4 Weeks UBS Financial Services
Director Art Cashin says that we’ll know within 3 or 4 weeks whether the
dreaded Hindenburg Omen, a set of market factors that precede a stock
market collapse, will unfold as many are now predicting.
Desperately Seeking Accommodation: Iran Offers U.S. Chance to Build Nuclear

Power Plants Kurt Nimmo | It is extremely unlikely the U.S. take Iran up on
the offer.
Former Pakistani Intel Chief Fears World War Three Is Imminent Steve Watson |
General Hamid Gul points to “dark impulse” controlling US system.
Obama: All In The Company Wayne Madsen | CIA connected to institutions and
individuals figuring prominently in the lives of Barack Obama, his mother,
father, grandmother, and stepfather.
Exposing World Government: United We Fall Documentary Now Featured on

Prison Planet.tv Kurt Nimmo | United We Fall breaks down the North
American Union and how “free trade” agreements between the United
States, Canada, and Mexico are impoverishing people and stripping away
national sovereignty.
The Ecstasy of Empire Paul Craig Roberts | Without a revolution, americans are
history.
Rand Paul Slams Obama: Stop Forcing Big Government Down Our Throats Steve
Watson | Kentucky Senate candidate Rand Paul made an impassioned
speech this weekend slamming the actions of the Obama administration for
continuing a big government agenda at the expense of the American people.
Hal Turner Betrayed and Burned by Government He Served Kurt Nimmo | The
case of Hal Turner should serve as a warning to those considering
cooperating with the government.
Internet Kill Switch Bill Moves Closer To Senate Vote An Internet kill switch bill
that would give President Obama the power to shut down parts of the world
wide web for a period of at least four months without congressional
oversight has moved closer to a Senate vote, with one of its primary
advocates, Democratic co-chairman of the House Cybersecurity Caucus Jim
Langevin, threatening a “cyber-9/11″ if the legislation is not quickly passed.
Exposing World Government: United We Fall Documentary Now Featured on
Prison Planet.tv United We Fall, a documentary by Bryan Law and Dan
Dicks, breaks down the North American Union and how “free trade”
agreements between the United States, Canada, and Mexico are
impoverishing people and stripping away national sovereignty.
Rand Paul Slams Obama: Stop Forcing Big Government Down Our Throats
Kentucky Senate candidate Rand Paul made an impassioned speech this
weekend slamming the actions of the Obama administration for continuing a
big government agenda at the expense of the interests of the American
people.
AT&T claims net neutrality is oppressive US TELECOM AT&T has come out in
support of Google’s contention that wireless communications are different
than wireline Internet services.
Government Using Google Earth To Loot Destitute Americans Aerial imaging

technology is being used by the government to spy on Americans in an
effort to collect revenue and enforce ordinances on swimming pools without
safety certificates, junk cars being stored without permission, unlicensed
porches, and a myriad of other petty transgressions that the state is feeding
off in complete violation of the Fourth Amendment to suck citizens dry of
whatever income they have left after being looted of trillions of dollars in
wealth that the state has transferred to foreign banks.
On Facebook: Israeli soldier posed with bound Arab (AP)
Capital controls are the next big event in the government-banking-
oligarchy’s great looting of America.
Military Industrial Complex: Of 158 retired generals advising wars, 80% tied to
defense industry; 29 are defense CEOs USA Today | Of the 158 retired
generals and admirals identified as mentors, 80% had financial ties to
defense contractor; 29 were company executives.
Cybersecurity Lie Exposed: Power Plants Are Not Connected To The Internet
Senator Joe Lieberman’s draconian Internet takeover legislation, the 197-
page Protecting Cyberspace as a National Asset Act, is being promoted as a
vital tool to protect vulnerable infrastructure hubs from terrorist attacks, but
as a recent Wall Street Journal report makes clear, large industrial power
and water plants are not even connected to the public Internet.
Vegetable zionist Zelig joe lieberman’s Model For America: Purging The Internet
of Dissent When political Zelig joe lieberman attempted to justify draconian
legislation that would provide President Obama with a figurative kill switch
to shut down parts of the Internet, he cited the Chinese system of Internet
policing as model which america should move towards
Obama Approval Rating Revisits Rock Bottom Despite Positive Media Spin
Despite positive corporate media spin amidst a cacophony of criticism from
both sides of the political spectrum, Barack Obama’s approval rating
matched its record low today according to Rasmussen Reports.

Already Knew A Congressional Oversight Panel issued today highlights the
fact that large portions of the Treasury’s $700 billion bailout fund have gone
straight into the coffers of foreign banks, a fact that we knew months ago,
but is only now being officially recognised.
Activists Take On Fluoridated Water in Wichita Concerned citizens in Wichita,

Kansas, have informed that city’s public officials about a poster campaign
designed to inform the public about the health hazards of water fluorination.
Illegal Immigrants Account for 8% of U.S. Newborns, Study Shows As many as

340,000 of the 4.3 million babies born in the U.S. in 2008 had at least one
parent who was an illegal immigrant, according to a Pew Hispanic Center
study of Census Bureau data.
Infowars.com Poll: Attack On Iran Imminent Kurt Nimmo | Nearly 60% of
respondents to an Infowars.com poll believe the U.S and Israel will attack
Iran in the near future.
Activists Take On Fluoridated Water in Wichita Infowars.com | Concerned

citizens in Wichita, Kansas, have informed that city’s public officials about a
poster campaign designed to inform the public about the health hazards of
water fluorination.
no return.


China focuses on military might (Washington Post) [And the big difference here
(between them and defacto bankrupt america) is that ‘THEY CAN AFFORD IT’ and
are not fighting nation-bankrupting, anti-american-sentiment-creating wars all
over the place.] Nation is quickly modernizing forces, extending influence deep
into Pacific and Indian oceans.
Karzai wants private security firms out of Afghanistan: KARZAI WANTS

COMPANIES OUT U.S. calls 4-month deadline 'very challenging'
(Washington Post) One too many civilian killed. Maybe they figured out that
american non-strategy employing the Hegelian methodology of creating
problems that American firms can solve. Doomed to failure, they eventually
catch on. The bushes were famed for same but wobama has foolishly been
no slouch in this regard.
Afghans still see U.S. as bad guy (Washington Post ) [Riiiiight! Sounds like a plan
… winning hearts and minds throughout the world … great for exports also as
such ‘won hearts and minds’ just love to buy american.] American, NATO forces
retain blame for civilian deaths despite spike from insurgent violence.
U.S. looks to replicate Iraq strategy, tactics (Washington Post ) [Oh right! Stick
with that winning plan that worked so swimmingly (as in drowning, in ie.,
debt, death, regional if not wordly anti-american sentiment, etc.)]. In
Kandahar, U.S. military officials hope that a secure green zone, similar to the
area in Baghdad, will make it more difficult for Taliban insurgents to mount
attacks to key buildings in the Afghan city.
Google and Verizon DID do a deal for new internet ‘first class’ superhighway
Technology giants Google and Verizon have today paved the way for a
future ‘two-tier’ internet in which companies can pay extra to make sure their
services get through. Google-Verizon Pact: It Gets Worse [ Timothy
Berners-Lee, putative father of the internet along with Cerf, has already
weighed in on this topic and strenuously opposed same and whose learned
opinion should be given great weight. google and verizon as mere
government shills at best and government, ie., nsa / cia, etc., operatives at
worst, are ‘johnny-come-latelies’ and died fast in government hands! ]. So
Google and Verizon went public today with their “policy framework” —
better known as the pact to end the Internet as we know it.
Iran Retaliates Against Sanctions: To Drop All Trade In “Filthy” Euro, Dollar Yet
another step in the escalation between Iran and the US came earlier today.
The Cycle of Violence in Afghanistan Last week the National Bureau of Economic
Research published a report on the effect of civilian casualties in
Afghanistan and Iraq that confirmed what critics of our foreign policy have
been saying for years: the killing of civilians, although unintentional, angers
other civilians and prompts them to seek revenge. This should be self-
evident.
Street Action: Poison In Tap Water Fliers Went out on a beautiful Saturday after
noon in Edmonton Alberta posting more fliers, posters etc. had a great time
had a few people harass me but nothing big. Just gave me motivation to do
more!! Resistance is Victory. Never Forget that.!!
Wheat Crisis Threatens Inflationary Timebomb, Food Riots Russia’s ban on wheat
exports following widespread fires in the country sent food prices
skyrocketing by 19 per cent in just a single week as fears grow that global
volatility in foodstuffs and commodities could lead to a worldwide
inflationary timebomb accompanied by widespread food riots.
The Obama presidency increasingly resembles a modern-day Ancien Régime:

extravagant and out of touch with the American people What the great
French historian Alexis de Tocqueville would make of today’s Obama
administration were he alive today is anyone’s guess.
The Coming Collapse of The U.S. Political Establishment The last U.S. puppet
regime to fall will be. . . the puppet regime in the White House.
Afghan war ‘kills 1,325 civilians this year’ More than 1,300 civilians have been
killed in Afghanistan so far this year, mostly by Taliban insurgents, a leading
Afghan rights group said Sunday.
Recession in U.S. Even Worse Than Estimated, Revisions Show The worst U.S.
recession since the 1930s was even deeper than previously estimated,
reflecting bigger slumps in consumer spending and housing, according to
revised figures.
Iran Unveils New Submarines and Makes More Persian Gulf Warnings Iran
announced the addition of four new submarines to its fleet Sunday, saying
the Iranian-manufactured vessels to be deployed in the Persian Gulf have
sonar-evading technology and can launch torpedoes and missiles
simultaneously.
Fidel Castro: Obama can avert impending nuclear holocaust Miami Herald | If
Obama approves an attack on Iran, war will spread through the Middle East
and Asia and cause hundreds of millions of deaths, Castro warned.
Who poses the real threat to the Internet? A new opinion piece on CNN.com
argues that it’s the government, not the companies providing internet
access, that is the real danger to free speech and the internet. [I personally
have found more often and prospectively problematic is that said
government / company distinction is one without a difference when the
government flexes muscle, particularly with leverage as ie., to non-
performing monopolist microsoft, nsa/cia partner google (to a lesser extent
at this juncture), cnn/timewarner cable (incompetence also a factor), fedex,
etc.].
Wow! Talk about stretchin’ it! Alleged by black shooter: prejudice displayed by
company as they fired thornton for stealing / selling the company’s beer he
was supposed to be delivering … The ultimate race card … Riiiiight! You
can’t make this stuff up! Fatal Shootings Reponse: 'No One Died After Police
Arrived On Scene' Hartford Courant - As police on Friday concluded their
on-scene investigation into Tuesday's mass killing at Hartford Distributors,
they also began evaluating their response to the tragedy. Police arrest
woman they say accepted beer from Connecticut shooter CNN Omar
Thornton 911 Call: "I Wish I Could Have Got More of the People" CBS News
Voters Reject Notion That “Government Can Do Anything It Likes” A

Rasmussen poll indicates that an overwhelming eighty-six percent (86%) of
voters nationwide say there should be “limits on what the federal
government can do”, in response to recent comments from pro-Obamacare
Congressman Pete Stark.
Swine Flu Investigator Jane Bürgermeister Faces Prison Now that there is
verifiable, unambiguous evidence that the Austrian government and state
prosecutors have faked criminal charges to provide a pretext to arrest and
detain me, I am going to apply to the European Court of Human Rights.
U.S. Employers Shed Jobs The U.S. economy shed more jobs than expected in
July while the unemployment rate held steady at 9.5%, a further sign the
Gold Surges To Three Week High As Dollar Tanks Gold prices have surged to to
three week highs as the stock market and the U.S. economy continue to
flounder, leaving investors seeking a safe haven in hard assets.
Globalists Race To Enforce Criminal Carbon Tax Despite the failure of last year’s
Copenhagen climate summit, the United Nations is pushing ahead for a
global carbon tax that will bankroll the expansion of world government as
globalists attempt to make Americans pay for the evisceration of their own
sovereinty and future prosperity.
Poison Tap Water Exposed As Soft Kill Weapon Water fluoridation has come to
refer to the addition of over 40 chemicals into the water supply that
synergistically come together to wreak havoc on the body and its processes.
Fluoride Truth on Australian TV – Fluoride Retards the Brain TV NEWS show

exposes Fluoride for what it is – poison!
Poison Tap Water Makes Number 1 Google Search Poison tap water has become
the number one trending search term on Google trends today after our
efforts to bring attention to how sodium fluoride in tap water is a deadly
health threat went viral.
Sodium Fluoride: Poison In The Tap Water Alex Jones is launching a new
campaign to inform the public about the toxic chemical fluoride being added
to tap water across the country. While EPA scientists and workers are
calling for an end to water fluoridation, the government is doing everything
in its power to continue and even increase the amount of toxic chemicals
being added to public water supplies.
Naked Body Scanners: Monumental Cover Up Exposed At the height of the furor
over airport body scanners earlier this year, the TSA publicly stated that it
was not possible to store, record, transmit or print out the images that show
in detail the naked bodies of men, women and children that have passed
through them. At the time we presented evidence to the contrary. Now it has
been conclusively proven that the TSA and other federal agencies using the
scanners flat out lied to an unwitting public.
Material girl Michelle Obama is a modern-day Marie Antoinette on a glitzy Spanish

vacation NY Daily News | But while most of the country is pinching pennies
and downsizing summer sojourns – or forgoing them altogether – the
Obamas don’t seem to be heeding their own advice.
SEC Probes BP Potential Insider Trading: Sources Reuters | U.S. securities
regulators are investigating whether people may have illegally profited from
trading on nonpublic information at BP in the weeks following the disastrous
Gulf oil spill.
Rockefeller Foundation Developed Vaccines For “Mass-Scale” Fertility Reduction

In its 1968 yearly report, the Rockefeller Foundation acknowledged funding
the development of so-called “anti-fertility vaccines”
China Holds More Military Exercises Amid Tensions With U.S. Chinese armed
forces on Thursday continued a second set of back-to-back exercises,
underscoring expanding capabilities and ambitions that have prompted
unease among top U.S. military officers. That unease has been exacerbated
by Beijing’s freezing of military-to-military ties.
Preparing for World War III, Targeting Iran Humanity is at a dangerous

crossroads. War preparations to attack Iran are in “an advanced state of
readiness”. Hi tech weapons systems including nuclear warheads are fully
deployed.
Pentagon tells WikiLeaks: "Do right thing" (Reuters) [Great advice … if only the
endless war, military complex based pentagon could take it!] The Pentagon
demanded on Thursday that whistle-blower web site WikiLeaks immediately hand
over about 15,000 secret Afghan war records it had not yet published and erase
material it had alrea…
US faces deadliest month in Afghan war With 63 US service members killed, July
has become the deadliest month for American forces stationed in war-torn
Afghanistan.
Google and CIA Plough Millions Into Huge ‘Recorded Future’ Monitoring Project
Google’s cosy relationship with the U.S. spy network has once again been
thrust into the spotlight as the company is reported to have jointly invested
with the CIA in an Internet monitoring project that scours Twitter accounts,
blogs and websites for all sorts of information, and can also “predict the
future”.
Google and CIA Fund Political Precrime Technology More evidence has emerged
revealing Google’s spook connections. Noah Shachtman, writing for Wired,
details how the CIA’s technology investment operation, In-Q-Tel, and Google
are supporting a company that monitors the web in real time.
President Obama calls African-Americans a ‘mongrel people’ President Obama

waded into the national race debate in an unlikely setting and with an
unusual choice of words: telling daytime talk show hosts that African-
Americans are “sort of a mongrel people.”
White House proposal would ease FBI access to records of Internet activity The
Obama administration is seeking to make it easier for the FBI to compel
companies to turn over records of an individual’s Internet activity without a
court order if agents deem the information relevant to a terrorism or
intelligence investigation.
Steve Watson | Search Company’s ties to spy agency in spotlight again over
real time Internet monitoring.
Google and CIA Fund Political Precrime Technology Kurt Nimmo | Google is
complicit in the concerted effort to build a huge surveillance and control
grid.
Source of leaked military docs unknown: WikiLeaks While the United States is
trying to hunt for the individual behind the massive leak of US military data
on Afghanistan war, the whistleblowers’ website, that made the 91,000
classified documents available to the world, has said that the source of leak
is unknown.
Document leak part of U.S. plot, says Pakistani ex-general with ties to Taliban
From the deluge of leaked military documents published Sunday, a former
Pakistani spy chief emerged as a chilling personification of his nation’s
alleged duplicity in the Afghan war — an erstwhile U.S. ally turned Taliban
tutor.
Leaked files indicate U.S. pays Afghan media to run friendly stories Buried
among the 92,000 classified documents released Sunday by WikiLeaks is
some intriguing evidence that the U.S. military in Afghanistan has adopted a
PR strategy that got it into trouble in Iraq: paying local media outlets to run
friendly stories.
World Net Daily (I found them to be a less than credible israeli / bush
aministration shill at best and haven’t even looked at said site in many
years) writer says Fluoride is good for you. An open letter to Phil Elmore Rob
Dew / Kurt Nimmo | The only winners are the aluminum and fertilizer
industries that work hand in hand with public water works to send toxic
waste into the homes of millions across our country.
Congress extends war funding for Afghanistan Baltimore Co. Independent

Examiner | Congress voted to extend funding for the war in Afghanistan by
an additional $59 billion late on Tuesday.
Kucinich: 92,000 reasons to end the wars AFP | US lawmakers opposed to the
Afghan war, emboldened by a huge leak of military files on the conflict,
pushed Tuesday for pulling US forces from Pakistan.
Oliver Stone has apologized for his anti-Semitic rant, but is the damage already
done. What damage? To perceived reality as opposed to reality? When you look
at america’s pro-israel, self-destructive, contra-indicated policies, including the
hands off policy vis-à-vis fraudulent wall street, you see the truth to what he says
which is what so many astute individuals are already thinking / realizing. How can
people continue to ignore the truth, to their own detriment Think about it. Do you
really think he would risk the typical onslaught if the same weren’t true? ‘Director
Oliver Stone has been forced to make a grovelling apology over an anti-Semitic
outburst. The double Academy Award winner claimed that the Russians suffered
more during the Second World War and that there was a Jewish 'domination of
the media'. Stone also said that Jews had '****ed up' U.S. foreign policy for years
and suggested the British supported Hitler ...’ The relentless attacks on Mel
Gibson are of the same caliber and purpose; suppression of truth!
Infowars.com Poll: Majority Believe Road Warrior Depression Coming Kurt Nimmo
| Like the Great Depression, the Greatest Depression now being scientifically
created has a specific agenda in mind.
On the Bloated Intelligence Bureaucracy
Disappearing Act: $8.7 Billion of Iraq Development Money Missing Kurt Nimmo |
Government says it is all the fault of shoddy accounting practices.
Ahmadinejad: US Expansion Of War In Middle East Imminent Steve Watson |

Tensions rise with saber rattling rhetoric.
David Cameron: Israeli blockade has turned Gaza Strip into a ‘prison camp’ David
Cameron used a visit to Turkey to make his strongest intervention yet in the
intractable Middle East conflict today when he likened the experience of
Palestinians in the blockadedGaza Strip to that of a “prison camp”.
Rockefeller Study Envisages Future Dictatorship Controlled By Elite …

(Vegetables … Yes, Asparagus, not Broccoli) … Here’s the pathetic news,
however; it’s called reality: [Neanderthals, Humans Interbred, DNA Proves
Signs of Neanderthals Mating With Humans - Neanderthals mated with some
modern humans after all and left their imprint in the human genome.
Genome hints humans, Neanderthals rolled in prehistoric hay You're a
Neanderthal: Genes say yes — a little bit (AP) Neanderthals and people
interbred, fossil analysis finds For more info on man’s humble beginnings,
see here http://www.albertpeia.com/anthroindex1.htm Previously I
wrote: FOUND: MISSING LINK BETWEEN APES AND MAN.... These
stories, and the many like it, are old news and I subscribe to the more
studied view that there is no “missing link” per se and in my view they are
distinctions without significant differences. I previously wrote: [see infra]
and [Interestingly, my intuitive (but unstudied) thoughts prior to closer
examination of the compelling subject of Biological Anthropology remain
what I believe to be the correct scenario. Specifically, very simply stated, for
the most part, the more “enlightened” (but not by much; by mutation,
accident, luck, intervention, etc.) left the unvarying confines of their Sub-
Saharan origins, experienced diverse new environs, challenges, etc.,
experienced what has been described (by neuroscientists, psychologists,
etc.) as neurogenesis in varying degrees and forms thereby over time, which
trait was selected for and is consistent with the purported multi-regional
evolutionary model which does not overtly contradict ultimately, initial
African origins. Races, sub-species, missing links, etc., are subsumed in
this very humbling and sorrowful tale of the “dawn of man”.] [see infra] …]
Global pandemics that kill millions, mandatory quarantines, checkpoints,
biometric ID cards, and a world of top-down government control. These
things are not lifted from the latest sci-fi blockbuster movie, they’re part of
the Rockefeller Foundation’s vision for what the globe might be like in 15-20
years’ time under a new world order tightly controlled by the elite. [That’s
getting awfully close to the outside ‘decades, not millennia or even
centuries’].
Iran accuses US and UK of supporting group behind mosque attacks Iran is

vowing to hunt down a Sunni separatist group which claimed responsibility
for a double suicide bombing that killed 28 people at a mosque in the south-
eastern city of Zahedan.
US, NATO behind Iran bombings: MP An Iranian lawmaker slams the recent
bombings in the country’s southeast as a plot by Western military forces in
the Middle East to spread terror on Iran’s borders.
WASHPOST Ombudsman: Why Silence on Black Panther Story? (Washington

Post) ‘Thursday's Post reported about a growing controversy over the Justice
Department's decision to scale down a voter-intimidation case against members
of the New Black Panther Party. The story succinctly summarized the issues but
left many readers with a question: What took you so long? For months, readers
have contacted the ombudsman wondering why The Post hasn't been covering
the case. The calls increased recently after competitors such as the New York
Times and the Associated Press wrote stories. Fox News and right-wing bloggers
have been pumping the story. Liberal bloggers have countered, accusing them of
trying to manufacture a scandal. But The Post has been virtually silent. The story
has its origins on Election Day in 2008, when two members of the New Black
Panther Party stood in front of a Philadelphia polling place. YouTube video of the
men, now viewed nearly 1.5 million times, shows both wearing paramilitary
clothing. One carried a nightstick…’
Latino KKK: You are too white to be American! ALIPAC | Tan Klan woman can
scream racist comments because the Obama administration and most of the
major news networks in America have her back.
‘West, israel linked to SE Iran blasts’ A ranking official with the Islamic
Revolution Guards Corps (IRGC) has implicated “the us, israel and some
european countries” in the deadly blasts in the southeastern Iranian city of
Zahedan.
De-classified Vietnam-era Transcripts Show Senators Knew Gulf Of Tonkin Was A

Staged False Flag Event Over 1,100 pages of previously classified Vietnam-
era transcripts released this week by the Senate Foreign Relations
Committee highlight the fact that several Senators knew that the White
House and the Pentagon had deceived the American people over the 1964
Gulf of Tonkin incident.
Afghans march in Kabul to denounce NATO strikes that killed civilians:

Demonstrators shout anti-American slogans, denounce NATO strikes
(Washington Post ) Sounds like a plan! Almost surreal was the appearance of
gates on failed network ‘news’ show to shill the non-strategy of draw down
(of troops) linked to success. What success? Just being there and every day
they’re there is unequivocally abject failure. Celebritology Weekend:
Angelina Jolie biography arrives; Heidi Montag files for divorce (Washington
Post ) I usually don’t weigh in on entertainment news, but this headline
concerning what appears to be a disparaging, and quite selectively so,
purported biography of Angelina Jolie is very disheartening when you
consider the numerous instances of failed leadership at nearly all very high
levels of government having so detrimental an impact on the world, that
morton deems his time appropriate to an actress who has actually tried to
do good things (U.N., etc.) without having to. Indeed, even her latest film
‘Salt’ (spectacular by any standard as is her performance – there are at least
2 winning sequels there with 4 the max and stretching it owing to age – she
puts all, and I mean all the ‘Bonds’ to shame) had an important message in
terms of the damage to this nation by a seemingly endless, nation-
bankrupting, anti-american (war criminal israelis already, and quite correctly,
globally hated) sentiment producing war strategy that is neither strategy nor
reasonably consistent with any positive american goal / objective; but rather
is such a debacle and folly that the same could very well be one that only an
enemy of defacto bankrupt america could hatch and for the reasoning set
forth in the well-written / directed film. She astutely observed and talked
about the synchronicity of the film as juxtaposed to recent events revealing
that she is wiser than most in Washington.
Wall Street Is Laundering Drug Money And Getting Away With It Zach Carter |
Wachovia was moving money behind literally tons of cocaine from violent
drug cartels. It wasn’t an accident.
Drudgereport: NEW LOW FOR O: USATODAYGALLUP HAS OBAMA APPROVE AT
41%...
America Is 'Bankrupt Mickey Mouse Economy'...
DOW drops 265...
US-backed fighters in Iraq defect to al-Qaida... [Winning hearts and minds … for Al Qaida
… just one too many civilian deaths for no good reason at all ]
CASTRO WARNS OF IMPENDING NUCLEAR HOLOCAUST
WELCOME TO THE RECOVERY...
JULY UNEMPLOYMENT -131,000 JOBS...
Revised: May/June -97,000 jobs than first reported...
Odd mix of bad news...
CASTRO WARNS OF IMPENDING NUCLEAR HOLOCAUST
Michelle Obama 'modern-day Marie Antoinette'...
NYT: 'Leaves the taxpayers with a hefty bill'...
While Obama preaches sacrifice, his family frolics in Spain...
Gazpacho, turbot, veal and ratatouille with the king...
Lavish Obama vacation in time of economic turmoil raises eyebrows...
BAKER: 'Leaves taxpayers with hefty bill'...
Hollywood star-studded gala at first lady's luxury hotel...
MICHELLE O'S $375,000 VACATION?!
Strolls Marbella after State Dept. 'racist' Spaniards gaffe...
White House calling: Please will you make a coat for Michelle...
Boy Scouts boo Obama...
GALLUP: Blacks and Whites Continue to Differ Sharply on Obama...
JUDGE KNOCKS DOWN MARRIAGE PROP IN CA
BLOW TO O: MO SAYS NO
Voters overwhelmingly rejected federal mandate to purchase health insurance...
Americans swap passports; Desire to avoid tax leads some to renounce
citizenship...
Ahmadinejad survives blast near motorcade...
'Stupid Zionists have hired mercenaries to assassinate me'...
FALTERING RECOVERY TRIPS DOLLAR...
GM, FORD and CHRYSLER Sales All Lag Estimates...
Stimulus Slammed: Republican Senators Release Report Alleging Waste...
The 100 worst stimulus projects...
SHOCK VIDEO: DEM CONGRESSMAN BRAGS: 'FEDERAL GOVERNMENT CAN
DO MOST ANYTHING IN THIS COUNTRY'...
Deadliest Month Of Afghan War
Paper: Will Washington's Failures Lead To Second American Revolution
Maxine Waters faces trial over bank bailout funds...
HOT WATERS
Dems Say Sorry, Charlie...
Democrats Say Rangel Should Resign...
Obama: Time For Rangel To End Career 'With Dignity'...
60,000 babies born to 'noncitizens' get U.S. birthright - in Texas alone...
Dutch become 1st NATO member to quit Afghanistan...
Economic indicators reflect weak recovery (Washington Post) Even assuming

their anemic, negative numbers are real (I don’t believe anything they say
and believe situation to be more dire than reported), the economic reality
indicated prospectively thereby is as previously set forth: This is a global
are criminally prosecuted, jailed, fined, and disgorgement imposed
As economy slowly recovers, area companies announce IPOs (Washington Post)
With very few exceptions, economic realities make the same (ordinarily a
real net economic positive) a negative owing to dilution and the absence of
real, profitable, private sector investment opportunities.
China surpasses Japan as world's No. 2 economy (Washington Post) As if no one saw
that coming.
Fed’s Hoenig: Keeping Rates Too Low ‘Dangerous Gamble’ The Federal Reserve
is undertaking a “dangerous gamble” by keeping rates at near zero for so
long, and must start raising rates or risk damaging the nascent U.S.
recovery, a top Federal Reserve official said on Friday.
Economic Collapse | Most of the folks populating Congress are so
incompetent that they should not even be hired to mop the floors of a Dairy
Queen.
Lots of stimulus yet to be spent (Washington Post) [Wow! Sounds like Alec’s looking for
‘work’ on wall street. I think his glass is not only ‘wall-street-half-full’, but has an extra
concentration of fluoride, the effects of which seem ‘reachingly obvious’. Time to come
back to economic reality, Alec. ]Alec MacGillis / As Americans puzzle over why the
economic stimulus package enacted more than a year ago has failed to restore
vigorous job growth, one explanation has emerged from new reports: A lot of the money
is not yet out the door.
High Probability for Lower Market Prices Ahead ‘…Economic numbers being what
they are (very poor), we should expect a downward revision of second
quarter GDP to 1.5% from the originally disappointing number of 2.4%. As
more data is being released it is apparent that we are witnessing even
further deterioration here in the third quarter. Will we have a double dip or
since it officially has never been declared that we have come out of the
recession, is this just more of the same? Globally, governments have spent
trillions of dollars to revive their economies. We are seeing mixed results
from that largess, as some countries such as Germany and China are doing
better than others, such as Greece, Ireland and the US. Will more
government intervention help? I think not. We may have reached a tipping
point where many are tired of others being the benefactors of taxpayer
money …’
Gold Providing Safety During Market Downturn
Pension check may not be in the mail Chicago Tribune | Illinois public employees
who think the state constitution guarantees that they’ll get all their pension
benefits
Back to School? Bring Your Own Toilet Paper New York Times | “The first time I
saw it, my mouth hit the floor,” Emily’s mother, Kristin Cooper, said of the
list, which also included perennials like glue sticks, scissors and crayons.

dangerous one.
Obama Says Private Accounts Would Endanger U.S. Social Security Benefits
President Barack Obama said Republican proposals to have people invest
Social Security benefits in private accounts would increase the U.S. budget
deficit and put retirement money at risk to “the whims of Wall Street
traders.”
The Trade Deficit Nightmare When they hear the word deficit, most Americans
immediately think of the U.S. government budget deficit which is rapidly
spiralling out of control.
Economic indicators reflect weak recovery (Washington Post) [Recovery? I say
they’re dreamin’! So does Schiff, (Peter Schiff: “We’re in the Early Stages of
a Depression” The Motley Fool | Four years and the worst recession since the
Great Depression later, Schiff stands alone again with a bleaker diagnosis
for the economy: an inflationary depression.) among other economists,
(Economists Herald New Great Depression The world is currently
experiencing the modern day equivalent of the Great Depression, according
to a prominent economist who has added his voice to scores of others now
forecasting ongoing economic doom on a scale not seen since the 1930s.) ,
and my position and that of demographer Dent (This is a global depression.
This is a secular bear market in a global depression. The past up move was
a manipulated bull (s***) cycle in a secular bear market. This has been a

instead of 2010.
latest.
2010 and 2012 ).
Warnings: Social Security at risk (Washington Post) [ Not this again! It bears
repeating, that was always a bad idea and there was a plethora of reasons set
forth on my site as to why the social security privatization plan being shilled by
moron war criminal dumbya bush on behalf of the wall street frauds was an
exceedingly bad idea. Indeed, as defacto insolvent as america / the social
security system is, the nation and system would have been wiped out by
privatization debacle. Talk about too big to, but still failed. It was a bad idea then,
and though accusations may fly as to fear mongering, the reality of the venality
attendant to such a preposterous course on behalf of the wall street frauds
requires vigilance, scrutiny, and discourse concerning even the remote
possibility of such a fool-hearty betrayal of the citizenry of the nation. As such, as
off the mark as wobama has almost invariably been, he’s on the mark on this. ]
ANALYSIS | Obama says GOP wants to privatize program, but liberals see a
different threat.
Makeup of Obama's housing reform panel draws ire (Washington Post) [Wow!
Talk about late to the party! I mean … a conference? It’s not as if this was
some new or novel problem coming down the pike. Then there’s the
everything but the core issue / problem approach that seems recurringly
fashionable.] Advocates say that the administration is excluding consumer
and community groups from playing prominent roles in a government-
sponsored conference next week that will kick off efforts to overhaul
national housing policy.
Foreclosures surge 9 percent in July (Washington Post) Those glass-half-full

frauds on wall street along with the administration will be cheering this
unequivocally bad news with a dubious retort as ‘used home sales will rise’ …
riiiight! Anything you say …
Stocks dip for third straight day (Washington Post) [Investor fears? How ‘bout
reality. Even an essentially non-business site as Drudge has the pulse of this
pervasive realization that ‘those dogs of happy days are here again don’t hunt no
more’. Check the heads: DRUDGEREPORT: America Is 'Bankrupt Mickey Mouse
Economy'...
Grim Voter Mood Turns Grimmer... and Economists Herald New Great
Depression The world is currently experiencing the modern day equivalent of the
Great Depression, according to a prominent economist who has added his voice
to scores of others now forecasting ongoing economic doom on a scale not seen
since the 1930s. Peter Schiff: “We’re in the Early Stages of a Depression” The
Motley Fool | Four years and the worst recession since the Great Depression
later, Schiff stands alone again with a bleaker diagnosis for the economy: an
inflationary depression. My take: This is a global depression. This is a secular
bear market in a global depression. The past up move was a manipulated bull
(s***) cycle in a secular bear market. This has been a typically manipulated bubble
as has preceded the prior crashes with great regularity that the wall street frauds
and insiders commission and sell into. This is a typical wall street churn and earn
frauds et als are criminally prosecuted, jailed, fined, and disgorgement imposed
Pearlstein: The FCC and the bandwidth wars (Washington Post) [The internet has
been among the few areas of growth and american prominence, at least at this
point in time. Clearly, as with the throng that heralded in NAFTA, the self-
interested voices of ie., google, verizon, etc., are similarly anathema to the greater
good (as was NAFTA). Berners-Lee spoke against such parochialism in no
uncertain terms, much as did Ross Perot on NAFTA and history has proven Perot
correct as is so of the mind numbing approaches of google, verizon, etc.]
Google-Verizon Pact: It Gets Worse (infowars.com) [ Timothy Berners-Lee,
putative father of the internet along with Cerf, has already weighed in on this
topic and strenuously opposed same and whose learned opinion should be given
great weight. google and verizon as mere government shills at best and
government, ie., nsa / cia, etc., operatives at worst, are ‘johnny-come-latelies’ and
died fast in government hands! ]. So Google and Verizon went public today with
their “policy framework” — better known as the pact to end the Internet as we
know it.
AP Business Highlights ‘Jobs picture dims as unemployment claims rise

WASHINGTON (AP) -- The economy is looking bleaker as new applications for
jobless benefits rose last week to the highest level in almost six months. It's a
sign that hiring remains weak and employers may be going back to cutting their
staffs. Analysts say the increase suggests companies won't be adding enough
workers in August to lower the 9.5 percent unemployment rate. First-time claims
for jobless benefits edged up by 2,000 to a seasonally adjusted 484,000, the Labor
Department said Thursday. That's the highest total since February. Analysts had
expected claims to fall…’
Bearish Sentiment Falls to 14-Week Low [Talk about contrarian indicators!] AAII
– ‘Bullish sentiment rose 9.4 percentage points to 39.8% in the latest AAII
Sentiment Survey. Despite the size of the increase, the proportion of individual
investors expecting stock prices to rise over the next six months is only at a two-
week high. The historical average is 39%. Neutral sentiment, expectations that
stock prices will stay essentially flat over the next six months, fell 1.3 percentage
points to 30.1%. The historical average is 31%. Bearish sentiment, expectations
that stock prices will fall, dropped 8.1 percentage points to 30.1%. This is a 14-
week low. The historical average is 30%. The survey period, Thursday through
Wednesday, needs to be taken into consideration when looking at these results.
Stock prices were essentially flat through most of this week's survey period (with
the obvious exception of yesterday), giving some investors hope that a short-
term bottom had been established. Though there were big changes in bullish and
bearish sentiment, both optimism and pessimism are close to their historical
averages. As a result, I would argue that individual investors' confidence in the
market remains fragile…’
nearly 900,000 annually (with benefits the package was an incredible
China contracts through her husband’s companies, as previousl set forth on
this website. Drudgereport: 'Where do the bailouts end?' [I feel compelled to
comment here that even capital hill math would be hard-pressed to justify
$26 billion taxpayer / treasury dollars they don’t really have, to save 300,000
state / local government jobs! After all, the nation is defacto bankrupt! ]
ACCORDING TO TECHNICAL INDICATORS, MELTDOWN IS POSSIBLE Simon

Maierhofer A SOLID TRACK RECORD An analysis of the SMA crossover buy/sell
signals triggered for the S&P over the past 10 days shows that six of the eight
signals (75%) were correct. ..LAGGING BUT ACCURATE Many dismiss the 200-
day or other SMAs as lagging indicators. Although an indicator may be lagging it
doesn't mean it's incorrect or should be dismissed… Even though a lagging
indicator, the rain does confirm that a storm is coming. A PRO-ACTIVE
APPROACH You'd expect Wall Street and the financial media to be the financial
weather man and warn you of upcoming storms. Unfortunately, that is not so.
Leading up to the April 2010 recovery highs, Wall Street and the media
proclaimed the skies are clear, 'sunny throughout the year' was their weather
forecast. Only after investors got drenched, did Wall Street recommend pulling
out the umbrella. Sure enough, as soon as the umbrellas came out, stocks
switched into rally mode and the sky cleared up. Unlike Wall Street, the ETF Profit
Strategy Newsletter warned of the brewing storm while it was still sunny. On April
16, the newsletter warned that 'historically, there has rarely been a more
pronounced sell signal ... When consumers spend, they do so with credit cards.
Visa and Master Card both got hit with a death cross. It's just a matter of time
until the discretionary sector follows. WAIT, THERE IS MORE …High copper
prices are reflective of high demand and a humming economy. Lower copper
prices signal trouble ahead. On June 22, an ominous death cross visited copper's
chart. PUTTING THE ODDS IN YOUR FAVOR Investing is a game of probabilities.
While you always want to have the odds in your favor, you never want to bet
against the odds. Right now, the odds are piling up on the bearish side of the
ledger. Even though Wall Street is saying that the sky has cleared up,
'meteorologists' with a better track record are warning of the storm ahead. In fact,
there is one rare chart formation that strongly suggests the onset of a 2008-like
decline, a development that's certainly supported by the number of death crosses
spanning a variety of markets. The August issue of the ETF Profit Strategy
Newsletter includes a detailed short, mid and long-term forecast, along with the
one chart that tells the market's story and true bearish potential.
Congressman Calls Vote on $26 Billion Jobs Bill a Sign ‘We’re Not Bankrupting
the Country Fast Enough’ With a tone of sarcasm, a California Republican
congressman said that he “knows” why members of the U.S. House of
Representatives were summoned from their home districts back to
Washington, D.C., and the halls of Congress.
U.S. Is Bankrupt and We Don’t Even Know Bloomberg | Let’s get real. The U.S. is
bankrupt. Neither spending more nor taxing less will help the country pay its
bills.
Crowd waiting for housing vouchers gets rowdy Atlanta Journal-Constitution | A
crowd of people hoping to get federal housing assistance became unruly
Wednesday morning with reports of fights breaking out in the crowd.
Californians’ income falls for first time since WWII Sacramento Bee | The personal
incomes of Golden State workers fell by that amount in 2009 compared with the
previous year.


depression.

Management.
DRUDGEREPORT: America Is 'Bankrupt Mickey Mouse Economy'...

PAPER: 10 reasons why Obama presidency is in meltdown...
GALLUP: Even the Poor Are Abandoning Obama; Approval Under 50%...
Obama abolishes White House position dedicated to transparency...
Michelle Obama popularity falls...
DOW drops 265...
US-backed fighters in Iraq defect to al-Qaida... [Winning hearts and minds … for
Al Qaida … just one too many civilian deaths for no good reason at all ]
economic doom on a scale not seen since the 1930s.
Ambac says it's working on bankruptcy filing MBIA Inc. reports a quarterly
profit, while rival bond insurer Ambac Financial Group posts a loss....
Food Inflation Coming To A Household Near You, As Wal-Mart Hikes Prices At

Fastest Pace Since Early January Nothing to see here, except yet another
sign of the food inflation that’s the story of the moment.
Albert Edwards Explains How The Leading Indicator Is Already Back Into
Recession Territory And Why The Japan “Ice Age” Is Coming Albert
Edwards reverts to his favorite economic concept, the “Ice Age” in his latest
commentary piece, presenting another piece in the puzzle of similarities
between the Japanese experience and that which the US is currently going
through.
The Horrific Derivatives Bubble That Could One Day Destroy The Entire World
Financial System Today there is a horrific derivatives bubble that threatens
to destroy not only the U.S. economy but the entire world financial system
as well, but unfortunately the vast majority of people do not understand it.
Fed set to downgrade outlook for US Financial Times | The Federal Reserve is
set to downgrade its assessment of US economic prospects.
Goldman Made Between $11 And $16 Billion In 2009 Trading CDS And Other
Derivatives As part of its most recent FCIC grilling, David Viniar left the
political theater a month ago with a homework assignment to disclose all of
the firm’s derivative profits, as well as provide granular detail on its
derivative trades.
Japan Redux: A Video Case Study Of The Upcoming U.S. Lost Decade Whether
one believes in inflation or deflation, one thing is certain: in many ways the
current US experience finds numerous parallels to what has been happening
in Japan for not one but two decades.
Wall Street bill sweeps away stray remnant of 1933 Glass-Steagall Act In seven
simple lines buried in this year’s financial overhaul bill, lawmakers swept
away one of the last vestiges of the 1933 Glass-Steagall Act that held sway
over markets for decades.
Small firms pay price of bank boom: As bankers celebrate more profits, more
companies die from lack of loans Small businesses are paying the price for
the banks’ dramatic return to bumper profits.
news right now…
from the state cut.
Federal Reserve.
everything this morning, for a few reasons...’

would.

August 3, 2010
record…

places?)

budget.

about 1.3% …’;
europe:
u.s.:
worse to come!
Warning Signs Suggest Market Headed for Another Collapse


instead of 2010.
latest.
2010 and 2012



understatements!]
to buy.


transparency.
has now fallen.
yesterday.








2009."…

Capital controls are the next big event in the government-banking-
oligarchy’s great looting of America.
Historic Voter Volatility in This Year of Fear It’s becoming increasingly clear that
Americans aren’t simply in the midst of hard times. They are in the midst of
one of the most volatile political environments since World War II.
Pat Tillman’s Father To Army Investigator: ‘F— You… And Yours’ There always
was a dark cinematic thread to the story of Pat Tillman: the football star imbued
with post-9/11 patriotism who was killed in a friendly-fire incident in the Afghan
mountains and the allegations of a massive bureaucratic cover-up involving the
highest levels of the U.S. Army in the wake of the tragedy.
Petraeus wants more time in Afghanistan Foreign Policy | ISAF commander Gen.
David Petraeus and other military officers are publicly and privately pushing
to limit troop reductions starting in July 2011.
Pat Tillman’s Father To Army Investigator: ‘F– You… And Yours’ Huffington Post |
The Weinstein Company sent the Huffington Post two previously unseen
letters written by Tillman’s father at the peak of frustration with the army’s
investigation into his son’s death.
Military Industrial Complex: Of 158 retired generals advising wars, 80% tied to
defense industry; 29 are defense CEOs USA Today | Of the 158 retired
generals and admirals identified as mentors, 80% had financial ties to
defense contractor; 29 were company executives.
Despite positive corporate media spin amidst a cacophony of criticism from
both sides of the political spectrum, Barack Obama’s approval rating
matched its record low today according to Rasmussen Reports.



Anderson Cooper Apologizes For Media Complicity In Tillman Cover-Up Interview

with Pat Tillman’s father about new documentary exposing how the
government with help from the media used Pat Tillman’s death to promote
the war.
Traps, Military Weapons and Dobermans Investment guru and publisher of
The Gloom, Boom and Doom report, Marc Faber, regularly discusses
investment strategies for protecting and building wealth during times of
economic distress.

water fluorination.
no return.


evident.

revised figures.
simultaneously.
etc.].




Gulf oil spill.

The Psychology of Conspiracy Denial Wired Magazine writer Jonah Lehrer

attempts to offset the overwhelmingly critical response to his attack on Alex
Jones by characterizing skepticism of authority in the context of vaccines
and mass medication as a psychological dysfunction, despite the fact that
the history of government-funded medical research in the United States is
replete with examples of scientific abuse against unwitting victims.
Enemy hyped assassination: Iran pres. Iran’s President Mahmoud Ahmadinejad

rejects reports about an assassination attempt on his life in Hamadan
Province as a plot hatched by the enemies.

deployed.
Afghanistan.
future”.

grid.
is unknown.
tutor.
friendly stories.



Zahedan.


Down in the Dumps Street: Dave's Daily Wall Street now Dump Street.
Options Action: Bearish Bet on the Market ‘During tumultuous times you want to
protect your portfolio but how should you do it? Brian Stutland has a strategy
using the S&P ETF He suggests selling a call against a long position.
[$$] Prepping for a Data-Filled Friday [Writing covered calls is an interesting,

conservative financial strategy that certainly can enhance overall return, but as
well, limit upside potential / capital gains … which in this market is ‘no problemo’
whatsoever, reality considered ]‘There were several folks out this morning yelling
to buy the dip (Jim Cramer was one of them), and traders who followed that
advice did pretty well. Rather than buying the dip, I used the initial drop to escape
some positions I thought were going to expire worthless, then I used the bounce
to lighten up more. Bears were able to get the SPDR back under the $108.75 to
$108.88 area, which I see as key right now. Another Friday and I'm curious to see
any impact from the weekly options. Will the big names be stuck right around the
strikes where they stand now? Unfortunately, the bigger tech names are closer to
their downward strikes than their higher strikes, so that could pressure the
market. One name that doesn't seem to care is Baidu. It is right in between the
$80 and $85 strike right now, so...’
Jobless claims jump to 5-month high The number of first-time filers for
unemployment insurance rose to the highest level since late February last
week, according to a weekly government report released Thursday.
nearly $900,000 annually (with benefits the package was an incredible
China contracts through her husband’s companies, as previously set forth
on this website. Drudgereport: 'Where do the bailouts end?' [I feel
compelled to comment here that even capital hill math would be hard-
pressed to justify $26 billion taxpayer / treasury dollars they don’t really
have, to save 300,000 state / local government jobs! After all, the nation is
defacto bankrupt! ]
On-air use of N-word 'was wrong' (AP) (Washington Post) [The infamous ‘N’ word
… the wobama Oedipal effect …] Dr. Laura apologizes for using it on talk
radio show with caller she deemed "hypersensitive" to racism.

Resistance on Gaza flotilla came as surprise (Washington Post, 8-12-10) Oh,

please! Spare me the b*** s***! You’re hurting my ears and eyes! There’s no
excuse for what are typical militant, belligerent, provocative, war criminal
israeli actions, to america’s and the world’s detriment. For one to buy into
the typical israeli line they’d have to be deaf, dumb, and blind; and
particularly, self-destructively foolish. It’s sadly always the same old story
with the bloodthirsty israelis, with the few exceptions, bright lights as they
were, ie., Christ, Rabin, etc., meeting the same bloody and dismal fate.
Netanyahu: Raid on aid flotilla was 'last resort' after talks failed (Washington
Post) Come on! Isn’t everyone tired of the israeli b*** s*** of contriving
circumstances to sabotage resolution, then having everyone pay the price
for their intransigence and militancy (they have illegal nukes, commit war
crimes, etc.). Then there’s the everyone play dumb in light thereof; and,
defacto bankrupt america, et als, have been very dumb which is not lost on
the rest of the world. Time for tough action against war criminal nation,
international law / u.s. resolution violator israel.


depression.

Management.
news right now…
from the state cut.
Federal Reserve.
everything this morning, for a few reasons…First, breakouts don’t always work
and momentum stocks have a habit of ending their trends abruptly.
Second, …I can buy back in this afternoon if I change my mind (not likely). I see
more risk to the downside here than I do to the upside. …Third, the jobs number
tomorrow scares me. No, it doesn’t matter what the number is, we all know it’s
going to be bad, what matters is how the market reacts, and I have the feel it’s not
going to be good. Fourth, many of my oscillators are overbought here.Fifth, and
finally, I don’t like the fact that this rally has primarily taken place on the back of
the most beaten down sectors. …It all just doesn’t pass the smell test for me. I’ve
been successful at this not because I’m always right, but because I know when
I’m wrong and I’m willing to change course or step aside. Right now, I’ll step
aside.’

would.

August 3, 2010
record…

market.

places?)

budget.

about 1.3% …’;
europe:
u.s.:
worse to come!
Warning Signs Suggest Market Headed for Another Collapse


instead of 2010.
latest.
2010 and 2012



understatements!]
to buy.



transparency.
has now fallen.
yesterday.






2009."…

Senator Joe Lieberman’s draconian Internet takeover legislation Vegetable
zionist Zelig joe lieberman’s Model For America: Purging The Internet of
Dissent When political Zelig joe lieberman


Anderson Cooper Apologizes For Media Complicity In Tillman Cover-Up Interview

with Pat Tillman’s father about new documentary exposing how the
government with help from the media used Pat Tillman’s death to promote
the war.
Traps, Military Weapons and Dobermans Investment guru and publisher of
The Gloom, Boom and Doom report, Marc Faber, regularly discusses
investment strategies for protecting and building wealth during times of
economic distress.


water fluorination.
no return.

evident.

revised figures.
simultaneously.
etc.].




Gulf oil spill.

The Psychology of Conspiracy Denial Wired Magazine writer Jonah Lehrer
attempts to offset the overwhelmingly critical response to his attack on Alex
Jones by characterizing skepticism of authority in the context of vaccines
and mass medication as a psychological dysfunction, despite the fact that
the history of government-funded medical research in the United States is
replete with examples of scientific abuse against unwitting victims.
Enemy hyped assassination: Iran pres. Iran’s President Mahmoud Ahmadinejad

rejects reports about an assassination attempt on his life in Hamadan
Province as a plot hatched by the enemies.

deployed.
Afghanistan.
future”.

grid.
is unknown.
tutor.
friendly stories.
done. What damage? To perceived reality as opposed to reality? When you look
at america’s pro-israel, self-destructive, contra-indicated policies, including the
hands off policy vis-à-vis fraudulent wall street, you see the truth to what he says
which is what so many astute individuals are already thinking / realizing. How can
people continue to ignore the truth, to their own detriment Think about it. Do you
really think he would risk the typical onslaught if the same weren’t true? ‘Director
Oliver Stone has been forced to make a grovelling apology over an anti-Semitic
outburst. The double Academy Award winner claimed that the Russians suffered
more during the Second World War and that there was a Jewish 'domination of
the media'. Stone also said that Jews had '****ed up' U.S. foreign policy for years
and suggested the British supported Hitler ...’ The relentless attacks on Mel



Zahedan.


In weak economy, more people are filing early for Social Security (Washington
Post) I think this to be a combination of prescience and ‘get while the getting’s
good’. After all, this is an unfunded promise meant to be broken by defacto
bankrupt America.
Military experience helps shape future career success (Washington Post) [Oh
yes. That now typical american government / military experience; born of
nothing and offering nothing of real value morphing into that so-called
conduit for treasury-draining money flows aka the infamous consultant].
John Morgan's service in the Navy propels him to greater responsibilities at
the Pentagon, and eventually to a consulting position with Toffler
Associates.
INSIDER TRANSACTIONS (Washington Post) APPOINTMENTS: Insider

Transactions: Appointments (Washington Post) Yes, it all sounds like a
plan! A bad one for most; but, lucrative for a few, as is so with crime in the
general sense.
The anti-business president's pro-business recovery(Washington Post) [First,

what recovery? He’s just with open-eyes transferred treasury / taxpayer
dollars to fraudulent wall street et als including the military complex while
incurring unsustainable debt loads for already defacto bankrupt america.
Others have already recognized this reality. Is Obama a Marxist? He Works
for the Bankers Poll: Waning support for Obama on wars Support for
Obama’s wars fell to 36%, down from 48% - reality: This is a global
are criminally prosecuted, jailed, fined, and disgorgement imposed.
In Iraq, $2.6B unaccounted for (Washington Post) [Daaah! Fog of war frauds
among others; the nation’s treasury pillaged and plundered; I’ve previously
commented here and included on my website http://albertpeia.com , see infra]
Pentagon can't account for how it spent $2.6 billion of Iraqi oil proceeds, an IG
report says.
Articles on Catherine Austin Fitts' Blog: http://solari.com

Billions over Baghdad Barlett and Steele - Vanity Fair September 2007
Those Who Blow Whistle on Contractor Fraud in Iraq Face Penalties Hastings -
AP 2007
Auditor Quits with NASA Finances in ChaosBy Nag and Zabarenko2004
The War on WasteCBS News Citing "cooked books" at DOD, Rumsfeld on
the missing $2.3 trillion, 2002
Military Stashes Covert Millions St. Petersburg Times 2003
The power of Palin's touch (Washington Post) [Wow! Talk about stupid. Murphy
could have eliminated the middle-man (person) and appeared on SNL himself;
maybe reprising a familiar (Eddie) Murphy role as Gumby 2, Son of Gumby. The
only thing funnier is palin herself. She’s so embarrassingly dumb!] .Endorsement
lifts little-known candidate in Md., giving the struggling campaign a
"megaphone."

9 Reasons Why You Won’t See A Jobs Recovery Anytime Soon In two
words: small businesses.
Federal Employees Earn 30 to 40 Percent More than Private-Sector Workers,

Study Finds Federal employees earn 30 to 40 percent more money than their
private sector counterparts on average, a study from the conservative
Heritage Foundation finds.
The Oil Price Surge Indicator Says There’s A 100% Chance Of A New Recession
No, that headline is not a typo.
Gerald Celente On the Alex Jones Show: Double Dip Depression Will Lead Us Into
War The white shoe boys are taking us into the worst depression in history.

Accountability is unclear in israeli probe of flotilla raid (Washington Post) Oh,

come on! An israeli probe of an israeli massacre of civilians. Time for israel
to pay; for illegal nukes, for violations of international law, for continued
violations of u.n. resolutions, for provocations as pretexts to sabotage
peace talks, and on and on ad nauseum. Why does america among other
nations feel compelled to sacrifice themselves for the sake of a global
criminal nation with an insatiable greed and blood-thirst as israel?
What Pentagon cuts mean for future of defense contractors (Washington Post) Well,
taking a page from the fraudulent wall street glass always half full even when empty
camp, they might say more pie and less competition for that inner circle of frauds. You
know, this is a dead goose with gold-plated eggs scenario. Reality: U.S. IS BANKRUPT
AND WE DON’T EVEN KNOW IT : LAURENCE KOTLIKOFF LAURENCE KOTLIKOFF
AUG. 11 (BLOOMBERG) -(WASHINGTON POST) - LET’S GET REAL. THE U.S. IS
BANKRUPT. NEITHER SPENDING MORE NOR TAXING LESS WILL HELP THE
COUNTRY PAY ITS BILLS ... Peter Schiff: “We’re in the Early Stages of a
Depression” The Motley Fool | Four years and the worst recession since the Great
Depression later, Schiff stands alone again with a bleaker diagnosis for the economy:
an inflationary depression.
9.5%. At this rate of progress, and according to their thinking and
manipulations, full employment at an unprecedented 0% unemployment is
just around the corner as everyone stops looking for the jobs no longer
here, many of which were sent overseas and which are not coming back
owing to substantial economic structural / financial shifts.
Yeah! Dave’s the only one who seems to be on the mark concerning the
preposterous market action this day. Even before reading same I was going to
comment here that I believed that the decision to ‘mouse click / button push’ the
programmed buy trades was probably made after hours in the previous session.
Remember, these are desperate criminally insane frauds on wall street who really
try very hard to get people to by into their paper-churning high-frequency trade /
commission scam for which ultimately potentially productive money is siphoned
off / drained from the economy into their pockets which is a net negative in real
economic terms. They know all the tricks, technical trendlines, moving averages,
etc., to suck them in: Buy Program Express Lifts Markets: Dave's Daily - The
economic news from the unemployment report could not be worse and an old
pattern was repeated -- higher volume on a selloff followed by an engineered
"stick save" into the close. It used to be hard to make this stuff up, now it's
becoming routine. As noted yesterday, bulls might like bad data since they'd
expect another round of quantitative easing (QE2) from the Fed and a politically
desperate administration. This means more liquidity baby and an opportunity to
lift stocks to new highs. That's the thinking from bizzaro-land. So we get another
big intraday 150 point swing in the DJIA as the "2:15 PM Buy Program Express"
hits the tape on time as volume starts to dry up. That's why the caution sign
advises to stay away from the Program Trading Express. Nevertheless, volume
increased Friday with most of that coming early and often. Breadth was negative
but not overwhelmingly so.
China orders closure of more than 2,000 factories Associated Press (Washington
Post) [ Riiiight! The ultimate environmentalists. The communist Chinese.
How ‘bout that’s the China bubble bursting that you hear / see! Be sure to
wear some flowers in your hair… if you’re goin’ to san fran Beijing, your
goin’ to meet some gentle people there … ] China orders 2,087 steel and
cement mills and other factories with poor energy efficiency to close as the
country struggles to improve its battered environment.
(08-09-10) Economists Herald New Great Depression The world is currently

experiencing the modern day equivalent of the Great Depression, according to a
prominent economist who has added his voice to scores of others now
forecasting ongoing economic doom on a scale not seen since the 1930s.
Social Security borrowing cash to tap its own trust fund (Washington Post)
[ Wow! Talk about creative accounting / finance. Borrowing more cash to
replace paper IOU’s which should be cash but has been spent. Yes, indeed!
This sounds like a plan not sound. Sounds like defacto bankruptcy! ] This
year's cash deficit, the first since the early 1980s and the biggest ever,
means the government will have to borrow money to redeem some of the
Treasury securities in the trust fund.
Freddie Mac's loss narrows, but firm needs more aid (Washington Post) [ Sounds
like a plan! After all, what are corporations for in a free enterprise capitalist
system but to as closely as possible follow that fraudulent wall street
boondoggle paradigm of socializing the losses and privatizing the gains. I
still can’t get over those compensation packages that probably exceed the
value of the company.] Mortgage finance giant Freddie Mac said that its loss
in the second quarter narrowed but that taxpayers would still be on hook for
the foreseeable future.
Post Co. reports big increase in second-quarter earnings Congratulations to the

Washington Post for well deserved results! A testament to the fact that
excellence in fearless journalism has its rewards! … If not the Post, then
who? … :
Economist sticks by stimulus, regrets call on jobless rate (Washington Post)

Well, they skipped the ‘fall on her sword for the sake of the empire’ part, albeit a
defacto bankrupt empire … or, maybe that’s why she was chosen … because
she’s a Rome ..r. I’m still perplexed since ‘no-recession-helicopter-ben’ bernanke
and senile greenspun have far worse track records and indeed have been
causative agents for crises owing to their consistent ‘misdiagnoses’, and as if
tenured to said position received no such critical, job-jeopardizing scrutiny ( I’d
abolish the fed, absent full audit / transparency. In other words, I’d abolish the
fed).


Gold Has Got Its Groove Back How dare any of you second guess the gold bugs.
From a day’s low of $1,168 per ounce, the yellow metal rallied to a day’s high
of $1,186. Our precioussss is back on a tear, maybe.
Recovery sputters as companies add few jobs (Washington Post) ‘The nation’s
economic recovery continued to sputter in July as employers kept shedding
jobs and 181,000 discouraged workers dropped out of the labor force,
according to a government report released Friday… ‘ [Riiiiight! That ‘no-
longer looking’ dynamic that saves the day and the ue rate at 9.5%. At this
rate of progress, and according to their thinking and manipulations, full
employment at an unprecedented 0% unemployment is just around the
corner as everyone stops looking for the jobs no longer here, many of which
were sent overseas and which are not coming back owing to substantial
economic structural / financial shifts.]
Jobs Report: Companies Slow to Hire Only about 8 percent of the 8.4 million
jobs lost at the peak of the recession have been recovered, leaving millions of
Americans still looking for work, according to an analysis by ABC News'
Business Unit. Video: News Update: US Unemployment Rate Holds at 9.5%,
71,000 Jobs Added in June SmarTrend News 71K more jobs not enough to
dent unemployment rate The Associated Press

market.

FCC ends net neutrality talks (Washington Post) God knows it’s rare for me to
commend america for a governmental policy decision, but this is indeed one
such moment inasmuch as freedom of speech, constitution, meaningful
laws applicable to all, etc., are what define a nation and america, particularly.
Retailers' back-to-school blues (Washington Post) Sounds like a plan! The back-
to-school part; and make sure the frauds on wall street along with capital hill
are with them … you know, for the readin’, ‘ritin’, and ‘rithmetic, among other
fundamentals that they’ve forgotten or never learned. Like
adding/subtracting on capital hill, economics/finance/accounting on wall
street, etc.. Drogen doesn’t believe they can so this day he’s Stepping Aside
Because I Can Always Buy Back In Leigh Drogen ‘I sold out of everything
this morning, for a few reasons.(infra)
Fannie Mae shows progress (Washington Post) Wow! Talk about wall street spin
and parallel universes! I mean, come on; billion dollar plus losses are still
billion dollar plus losses; and, given the amounts of money defacto bankrupt
america doesn’t have that’s been thrown at the problem, anyone who
doesn’t have a sense of foreboding is a fool.
40 billionaires join Gates, Buffett in pledge to give half their fortunes to charity
(Washington Post) I thought 100% the number, and will wait till I see it. Still,
no small potatoes here. Sounds like an estate plan or maybe … Virginia's
inner struggle to get off the scotch tax (Washington Post) Beats moonshinin’
say the virginia hillbillies … those darn revenuers!
Geithner: Extending Bush tax cuts is a '$700 billion mistake' (Washington Post)
‘God bless us, everyone’ says that little teddy, tiny tim geithner, a lover of
taxes himself and statutes of limitation concerning same.
General's record is set straight (Washington Post) Knowing for sure, you know,
that it truly was Nixon who banged that pregnant girl just like the tea shirt /
poster said is kind of a mind altering experience. After all, just as Truman
once said, Nixon didn’t know whether he’s lying or telling the truth. Well,
that’s one for old saint Nixon since that militates against intent; you know,
the not knowing part, and after all, he was a liar(sic) by trade. Truth be told,
by more current american standards of corruption, venality, verity, etc.,
Nixon was but a choir boy. The irony of it all. Oh, the times they are a
changin’.
House break cut short to work on jobs bill (Washington Post) Eh … what the
heck, ‘tis only money (they don’t really have) and besides, only the federal
government can print it … sounds like a plan … and just in time for the
election, and that should help the ue stats.
Come on! Preposterous! Service sector? You mean the the b*** s*** sector. Even
if believed (I don’t believe anything they say, and at the least all must be
discounted down, as they do later when people have forgotten that’s the
purported reason they rallied), what is 17,000 service (predominantly b*** s***
government bought jobs with non-existent deficit building funds with some
exceptions – yes, 80% of america’s economy is now b*** s*** and as on wall
street, fraud) jobs in the relative scheme of things given the magnitude of the
problems, structural and otherwise? Nothing! Stocks went up on typically spun
‘nothing’.
General's record is set straight (Washington Post) Knowing for sure, you know,
that it truly was Nixon who banged that pregnant girl just like the tea shirt said is
kind of a mind altering experience. After all, just as Truman once said, Nixon
didn’t know whether he’s lying or telling the truth. Well, that’s one for old saint
Nixon since that militates against intent; you know, the not knowing part, and
after all, he was a liar(sic) by trade. Truth be told, by more current american
standards of corruption, venality, verity, etc., Nixon was but a choir boy. The
irony of it all. Oh, the times they are a changin’.
Comment on: Jobs in the cards? at 8/4/2010 6:11 AM EDT

How Obama can help small business (Washington Post) You’re a bit late …
they’ve already decided how to help … you might call their plan of putting them
out of their vaunted misery mercy killing, euthanasia, etc..
FHA: Mortgage insurance claims down (Washington Post) At least somethin’s

goin’ up, according to tiny tim ‘God bless us, everyone’! Treasury Secretary
Timothy Geithner: Unemployment Could Go Up Before It Comes Down
Infowars.com - [Ooooh! Sounds like a plan ‘tiny tim’! … God bless us everyone! ]
Treasury Secretary Timothy Geithner acknowledged that it is still a “tough
economy” for most americans, and warned it’s possible the unemployment rate
will go up for a couple of months before it comes down as more people enter the
labor force.
U.S. savings rate at highest level in a year, data show: UNEASE ABOUT U.S.
ECONOMY
Data suggest recovery not yet self-sustaining (Washington Post) Riiiight! Income
and spending basically unchanged with falloff in both, while pending housing
sales down to the lowest level on record. The half-glass full frauds on wall street
will take it. They can spin that.
Drudgereport: NEW LOW FOR O: USATODAYGALLUP HAS OBAMA APPROVE AT

41%...
Americans swap passports; Desire to avoid tax leads some to renounce
citizenship...
FALTERING RECOVERY TRIPS DOLLAR...
GM, FORD and CHRYSLER Sales All Lag Estimates...
Comment on: FHA is in better shape than expected at 8/4/2010 5:55 AM EDT
FHA: Mortgage insurance claims down (Washington Post) At least somethin’s
goin’ up, according to tiny tim ‘God bless us, everyone’! Treasury Secretary
Timothy Geithner: Unemployment Could Go Up Before It Comes Down
Infowars.com - [Ooooh! Sounds like a plan ‘tiny tim’! … God bless us everyone! ]
Treasury Secretary Timothy Geithner acknowledged that it is still a “tough
economy” for most americans, and warned it’s possible the unemployment rate
will go up for a couple of months before it comes down as more people enter the
labor force.
Comment on: As wages stall, savings rate rises at 8/4/2010 4:56 AM EDT
U.S. savings rate at highest level in a year, data show (Washington Post) Riiiight!
Income and spending basically unchanged with falloff in both, while pending
housing sales down to the lowest level on record. The half-glass full frauds on
wall street will take it.
Comment on: Democrats turn to manufacturing for jobs at 8/4/2010 4:52 AM EDT
Manufacturing focus of jobs plan (Washington Post) L’il bit late, but, sounds like
a plan. The government’s defacto bankrupt, but, they could always use an extra
pen or two for signing those spending bills. No bics allowed. Made in usa pens
only. Ah! But alas. Defacto bankrupt america’s expertise now lies in
manufacturing wars.

Sleep At Night
Americans who swap passports americans hoping to give up their citizenship…
(sure sign of insanity … I mean, Orwellian england of all places?)
In devising punishments, SEC faced with competing interests (Washington Post)

The best punishment and the greatest deterrent is to assure that the wall
imposed; that is, to forfeit what they stole by fraudulent means (remember,
the bad paper is still out there but I believe slowly but surely and very
selectively being supplanted by hard, albeit fiat currency) at the least. The
cost to the treasury / taxpayer has been enormous and hence, the resistance
to transparency / audit. The wall street perps should pay, and as yet, they
haven’t.
Tiny Tim geithner to bankers: Fear not new rules (Washington Post) They don’t!
… And, you can take that to the insolvent, mark to anything bank! God bless
us everyone! … And tiny tim, where’s that missing 4 trillion at the new york
fed? Have the taxpayers, through more surreptitious skullduggery
effectively picked up that tab too?
Bernanke: Long road back to economic health (Washington Post) No-recession

helicopter ben, waxing philosophical while strumming a few lines from the
Beatle’s ‘Long and Winding Road’ with great emotion that makes us feel for
that poor sot … or snot … or NOT!
understatements!]
Obama's 'I told you so' on autos (Washington Post) Riiiiight, wobama. One out of
thousands of things you said (laws of ‘random probability’ on your side), all
total b*** s***, ain’t nothin’ to crow about … and, by not standing by things
wobama said, the nation’s more bankrupt!
For some, power is money (Washington Post) ‘Montgomery workers lose wages
as they wait for power to return’ … Sounds like a plan … waiting for Godot …
PricewaterhouseCoopers laying off 500 employees (Washington Post) Well, the
least you can say for these accountants is that unlike washington, they can do
basic math (add / subtract).
Regulators close banks (108 total 2010) in Fla., Ga., Ore., Wash. (Washington
Post) Sounds like a plan! Things going swimmingly. Just separating the wheat
from the chaff, so to speak.
U.S. recovery hopes fade as economic growth dips (Washington Post) Gross
domestic product is not rising fast enough to ease unemployment …
July becomes deadliest month for U.S. troops (Washington Post) Sounds like
plan! You know, the fraudulent wall street glass half full kind of thing …
lowering of costs of prospective medical, benefits, pension … well, in truth,
I’m not sayin’ that they said that, but you’re dreamin’ if you don’t think they
think like that. You know, the new ‘attention to deficits disorder’ in light of
the nation’s defacto bankruptcy. What a total waste in every respect!
late for that. Oh, right … they were busy spending money the nation doesn’t
have on other things. Congress extends war funding for Afghanistan
Disappearing Act: $8.7 Billion of Iraq Development Money Missing Kurt
Nimmo | Government says it is all the fault of shoddy accounting practices.
3 U.S. troops die in Afghan war's deadliest month (Washington Post
7-30-10) World News Digest: a Worth it? 4 U.S. troops die in bomb blast in
south Afghanistan (AP, July 24, 2010) ‘There will be blood’ … whoops, that’s
oil, wrong movie theme. This one’s about heroin trade. 2 More Americans
killed in copter crash in Afghanistan (AP) Not so much, unless they rename
Tony Montana, To Mon el Swahili and recut ‘Scarface’ to reflect an
Aghanistan Heroin connection, or similarly change ‘Hurt Locker’. It’s a good
thing for the military that IQ tests aren’t required. Three U.S. Embassy
guards killed in rocket attack in Baghdad's Green Zone (Washington Post)
Big yes there since ‘The Green Zone’ got Hollywood movie status. Bomb
near Iraq mosque kills 15; U.S. soldier dies in road blast (Washington Post,
July 22, 2010) But guess what … none of that’s worth it; even for volunteer
soldiers whose suicide rate is unprecedented owing to this pointless,
meaningless conflagration for the sake of the military industrial complex and
the enrichment of the few; and, to which Pat Tillman was to attest which got
him fragged.
Middle East Digest (Washington Post) Witnesses report Israeli airstrikes in Gaza
Previous-Mideast Digest Israeli shelling kills 2 wounds 6 Gaza civilians:
(Washington Post) [War criminal israelis justified their attack saying when the 10
year old girl grew up to be a woman she’d be prepared to fire rockets at them]


THE CREATION OF THE NATION STATE OF ISRAEL
Adding profits but subtracting workers (Washington Post) Sounds like an

american strategy as on wall street launched pleine lune, vollmond, luna
ilena, plenilunio, pełnia księżyca, or full moon in English. You know, despite
warnings from the very sane Ross Perot very near labeled a lunatic, the
lunatics on wall street and elsewhere ‘figured’ how by shipping production
and jobs elsewhere you could do nothing with almost no workers and still
make a similar percentage profit by selling the repackaged foreign product
here (in other words something akin to wall street’s churn-and-earn high
frequency computerized commissionable trade programs that in real
economic terms is a net negative). The reference to Orwellian, though in other
context, if only for the synchronicity and the rapidity with which these
negative events have unfolded is welcomed. Just look at britain. Those poor
dumb brits. They think Orwellian’s their destiny and the way to go.
Long-term deflation is called a possibility (Washington Post) Whoops … Federal

Reserve's James Bullard: Long-term deflation like Japan’s is a possibility …
If only america’s could be like Japan’s … they’d take it. Though an
understatement, this revelation comes at a time when the ‘no recession ben
fed’ has become the antithesis of that ‘Washington cherry-tree tale’ since
they’ve become known for their american tail (sic) ‘they cannot tell the
truth’.
Foreclosures rise in most major metropolitan areas (Washington Post) Ooooh!

Sounds like a plan! Bully, bully, bullish say the frauds on wall street since
when sold in foreclosure those sales can be spun for increased existing (or
new) real estate sales (kind of like that almost contrarian indicator, short
sales, meaning at some point they’ll have to cover … righto old beans).
The biggest question since:Atlas/Who is John Galt?Who is Barry

Soetoro,wobama?
The following youtube video is well worth the look and explains how and why the
frauds on wall street have gotten away with their devastating fraud thus far.
The frauds on wall street et als should be criminally prosecuted, jailed, fined,
and disgorgement imposed. ( UPDATE: MORE CLAIMS OF RACE BIAS AT
PANTHER CASE... ex-Justice official quit over the handling of a voter
intimidation case against the New Black Panther Party accused his former
employer of instructing attorneys in the civil rights division to ignore cases
that involve black defendants and white victims US v. AZ... Cases against
Wall Street lag despite Holder’s vows to target financial fraud Obama broke
promises ):

Trends ]

WASHPOST TAKES ON THE SPOOKS: Hidden world, growing beyond control...

DIGEST: Consumer confidence down; home prices up (from and at low levels
which Shiller’s concedes are for the moment stabilized but unsustainable)
(Washington Post) The positive here is that at least the consumers / populace
have finally got something right.
Chiefs' compensation (Washington Post) The foregoing list, though only oil,
reveals an inherent american inclination toward thievery which also explains
the wall street debacle. Only the exceptionally few well-managed american
companies have ceo’s deserving of exceptional pay packages /
compensation and I think you’ll find in said companies compensation
commensurate with results. american ceo’s generally, and global results
(and comparisons) bear this out, are overpaid.
Oracle CEO tops list of highest paid execs with $1.8 billion (Washington Post)
Don’t just focus on him; american ceo’s generally, and global results (and
comparisons) bear this out, are overpaid.
D.C. area housing market a bright spot (Washington Post) Clearly a contrarian
indicator which means more in Washington doing nation’s business; clearly
a bad thing (more doing less, creating more problems than solving, costing
more for less, etc.).
Why Bernanke isn't advocating fiscal stimulus (Washington Post) I would be

inclined to say the obvious; that you can’t spend what you don’t have; but,
we all know that’s not true. Indeed, that’s become a significant part of the
problem and america’s defacto bankrupt status a testament to that reality.
Then there’s the over-printing of an ever more worthless fiat currency which
continues as ‘we speak’; and, there are limits to that too as the dire results
of same ultimately begin to unfold.
Cities, counties could slash 500,000 more jobs (Washington Post) Could? I’d say
must. Particularly when you factor in that this election ‘spurt’ leaving the
nation even more bankrupt is illusory. I had occasion some time ago in
speaking with a long-time California resident (instructor at the college gym
where I worked out) to express my surprise at the bloated (municipal, state)
high-priced bureaucracy which of course is not productive except as to
higher taxes and which is at the forefront in the city of Bell where the city
manager was paid nearly 900,000 annually, and specifically mentioned the
part-time typical compensation of $100,000 and contracts to interested, even
familial, parties. Of course, no one has done this better than feinstein, albeit
on a more federal level and China contracts through her husband’s
companies, as previousl set forth on this website.
'Systemic risk' and preventing the next bubble (Washington Post) Come on!
We’re in the next bubble; or, should I say in the same bubble inasmuch as
the so-called ‘last bubble’ never totally deflated owing to overactive Weimar
dollar (now european) printing presses, fraudulent mark to anything
accounting among other manipulations, etc.; and a less elastic (ready to
burst) one at that.
This is quite incredible. The wobama market … based on b*** s*** alone. Yes,
there’s a waning full moon. Yes, this is an election year and we’ve seen frothing,
false data / reports before. But come on! This is downright ridiculous. I had
occasion to hear from a so-called money manager on what used to be a balanced
business / finance radio program (I seldom listen to said program anymore, truth
be told, but owing to a scheduling quirk caught same this day) say that all the
economic / business news last week was good. In point of fact, the actual news
was all bad (except for some sporadic earnings reports that were discounted
many months ago). What parallel universe are these foisty feisty frauds living in?
Again, waning full moon Then the infamous federal but not really federal, express
in only a month (with blazing full moon) changed downward guidance to upward
guidance and based on b*** s***, and voila … another full moon rally (oh yeah, the
percentage up from low level housing still low). Are the 30 day lunar cycles at
work or just election year frothing? Preposterous. Fundamentals have not
changed. Structural problems to the economy and insurmountable debt remain
and will worsen. All their computer programmed trading tricks with eye towards
so-called technical support, resistance, etc., levels will suck some suckers in as
always, they’ll still get their commissions on the way down, and we’ll see the
bubble deflate again.
This is an especially great opportunity to sell and take whatever profits / gains
because there is truly much worse to come and the nation’s defacto bankrupt in
every way.
This Week in the Markets - Suttmeier ‘ …Bank Failure Friday – The FDIC closed
seven banks last Friday bringing the total for the month of July to 17 and 103 for
the year. Month to date bank failures have drained the FDIC Deposit Insurance
fund by $925.7 million brining the year to date today to $18.5 billion well above
the $15.33 billion prepaid assessments for all of 2010. I estimate that the DIF is
now in arrears by $32.7 billion.
• Only 25 banks failed in 2008, as the FDIC was slow closing community and
regional banks.
• There were 140 bank failures in 2009 with a peak of 50 in the third quarter.
• In the first quarter of 2010 there were 41 failures, in the second quarter
there were 45 failures, and so far 17 for the third quarter for a year to date
total of 103.
• At this pace bank closures in 2010 will be within my 150 to 200 estimate
range for 2010.
• Since the end of 2007, the FDIC has closed 267 banks on the way to my
predicted 500 to 800 by the end of 2012 into 2013 …’
103 U.S. Banks Have Collapsed So Far In 2010 – Do You Know If Your Bank Will
Survive? Have you ever noticed how almost all U.S. bank closings are now
announced over the weekend? It is almost as if someone wants to keep the
increasing number of bank closures out of the news cycle as much as
possible.
Jim Rogers: Stress Test Is a PR Exercise The stress test in which only seven of
91 European Union banks failed is just a public relations exercise and wasn’t
tough enough, famous investor Jim Rogers told CNBC.com Monday.
ETF Investing: S&P 500 ETF sending bearish signal …After hitting its 2010 peak
in April, the $70 billion SPDR S&P 500 ETF(SPY 110.41, +0.95, +0.87%) has
been in a downtrend punctuated by fizzled low-volume rallies and lower
highs.
Global bank rules deal struck (Washington Post) No action. Delay. Obfuscate and
‘fraudulate’. Riiiiight! Sounds like a plan! Things are going so fraudulently
swimmingly with the many trillions of bad paper / worthless assets still out
there and in defacto bankrupt american fashion now marked to anything.
Don’t want to upset that applecart; or rather, ‘something’ cart – apples are
just to expensive for street vending!
Financial Crisis Commission Threatens To Audit Goldman Sachs The Financial

Crisis Inquiry Commission headed up by Phil Angelides has threatened to
audit Goldman Sachs, as it looks for more data on its dealing in derivatives.
(They should! Forget the threats … Just do it and prosecute!)
Goldman reveals where bailout cash went Des Moines Register | Goldman Sachs
sent $4.3 billion in federal tax money to 32 entities, including many overseas
banks, hedge funds and pensions.
The Death of Paper Money Ambrose Evans-Pritchard | As they prepare for holiday
reading in Tuscany, City bankers are buying up rare copies of an obscure book
on the mechanics of Weimar inflation published in 1974.
Yes! I just (7-24-10) looked up and a quandary no longer as I saw the reason for
the market action to the upside the last few sessions. A blazing full moon! Lest
there be any doubt, truly a testament to the reality of lunacy and the lunar links
thereto are the lunatic fraudulent rallies on fraudulent wall street; criminally
insane by any standard.
This is a global depression. This is a secular bear market in a global depression.

The past up move was a manipulated bull (s***) cycle in a secular bear market.
This has been a typically manipulated bubble as has preceded the prior crashes
with great regularity that the wall street frauds and insiders commission and sell
into. This is a typical wall street churn and earn pass the hot potato scam / fraud
as in prior crashes’. This national decline, economic and otherwise, will not end
until justice is served and the wall street frauds et als are criminally prosecuted,
jailed, fined, and disgorgement imposed.
INSIDER TRANSACTIONS (Washington Post) Sell / Take profits / gains. That’s
what insiders do in contra-indicated stock bubbles as this (and don’t forget,
options must be executed and shares bought before they’re sold).
Financial News: What's coming this week (Washington Post) What does it matter?
False data, manipulated data, spun data, even blatantly bad data as in the
past week. More important are the lunar cycles:
China builds influence via cash (Washington Post) Well, cash is something that
accumulates when you don’t spend same on illegal wars (as is so of defacto
bankrupt america, ie., Iraq, Afghanistan, etc.); note Germany, Japan, etc..
Then there’s the ‘hate’ factor attendant to the ‘killing machine strategy’
which contrary to their folly / imagination, does not win hearts and minds.
Then there’s the fraudulent paper push which militates against real, net
economic gains.
Finally, there’s the american ‘crazy train’ factor which has become ever more
globally recognized.
'Tony Hayward is about to get his life back' (Washington Post) In Siberia … Yes,
tiny tony of little people fame sent into exile in Siberia as one might expect
from the New Soviet Socialist European Union. Note Russia’s Putin has
jumped onto that crazy train and to curry favor therein has ‘thrown Iran
under the bus’, so to speak. But, then again, what can you expect from a
former KGB indoctrinated communist, although america’s now mutated form
of capitalism / free enterprise (really not either) might yet resurrect the likes
of marx, lenin, trotsky, etc.. I’m somewhat embarrassed to have even
considered going to Europe (specifically Switzerland / Geneva) and though
language the impediment (I’m hard-wired for english and even with a prior
background in French, ie., junior high, high school, recent course-work in
French here in Cal did not come easily at all; although, computerization /
algorithms in English from inception did, which I believe explains Japan’s
difficulty with computers, ie., Sony vaio, Toyota car computerized systems,
etc.). Even meaningfully lawless america’s better than Europe (a very low
standard / threshold at that), for all the reasons that gave rise to america,
plus new reasons which will prove insurmountable having become the
‘lapdog’ joke of the ages as like lemmings they followed fraudulent wall
street’s, america’s lead blindly into the abyss.
Who’s Barry Soetoro, wobama?POLLS: NEW LOWS FOR O.../The Crucifixion of
Stone/Gibson
Strategy: Appearing On “The View” [More b*** s***!].
Drudgereport: GOLDMAN reveals where bailout cash went -- overseas banks!

POLLS: NEW LOWS FOR O...
Gibbs Misleads Public on Obama's Broken Tax Pledge...
JUSTICE... Justice official quit over the handling of a voter intimidation
instructing attorneys in the civil rights division to ignore cases that involve
black defendants and white victims Cases against Wall Street lag despite
Holder’s vows to target financial fraud Obama broke promises ):

Trends ]

Top U.S. officer warns Afghan war will get worse
done. What damage? To perceived reality as opposed to reality? When you
look at america’s pro-israel, self-destructive, contra-indicated policies,
including the hands off policy vis-à-vis fraudulent wall street, you see the
truth to what he says which is what so many astute individuals are already
thinking / realizing. How can people continue to ignore the truth, to their own
detriment Think about it. Do you really think he would risk the typical
onslaught if the same weren’t true? ‘Director Oliver Stone has been forced
to make a grovelling apology over an anti-Semitic outburst. The double
Academy Award winner claimed that the Russians suffered more during the
Second World War and that there was a Jewish 'domination of the media'.
Stone also said that Jews had '****ed up' U.S. foreign policy for years and
suggested the British supported Hitler ...’ The relentless attacks on Mel

of a Jewish state in Palestine, warned that, even though failure to go along
with the Zionists might cost President Truman the states of New York,
Pennsylvania, and California, it was about time that somebody should pay
some consideration to whether we might not lose the United States. Mr.
Forrestal was absolutely correct! Isn’t that exactly what’s happened to
defacto bankrupt america in intractable decline.
TIME TO REVOKE AND NULLIFY THE BALFOUR DECLARATION AND

ABROGATE THE CREATION OF THE NATION STATE OF ISRAEL IN THE
INTERESTS OF FAIRNESS, JUSTICE, PEACE AND PROSPECTIVE
PROSPERITY FOR THIS WORLD!
BP's Hayward sent to Siberia; to leave as CEO; Russia job in works (AP)
Wikileaks’ War Logs Highlight Global Intelligence Facade Of ‘War On Terror’
Wikileaks founder Julian Assange: more revelations to come
Law chief to probe KGB agent’s claim that David Kelly was ‘exterminated’
Top U.S. officer warns Afghan war will get worse NATO troops will die in
Afghanistan as violence mounts. Sounds like a plan!
Wikileaks’ War Logs Highlight Global Intelligence Facade Of ‘War On Terror’ The
Wikileaks Afghanistan War Logs, publicly released today, highlight and
corroborate what we already know about the “war on terror” – it is a vast
and decompartmentalised intelligence operation.
Wikileaks founder Julian Assange: more revelations to come The Wikileaks
founder, Julian Assange, said today that the organisation is working through
a “backlog” of further secret material and was expecting a “substantial
increase in submissions” from whistleblowers after one of the biggest leaks
inUS military history.
Law chief to probe KGB agent’s claim that David Kelly was ‘exterminated’ A
former Russian spy’s dossier which suggests that Government scientist
David Kelly was ‘ exterminated’ in a planned assassination is being studied
by the Attorney General.
Top U.S. officer warns Afghan war will get worse More NATO troops will die in
Afghanistan as violence mounts over the summer, but Washington’s goal of
turning the tide against the insurgency by year’s end is within reach, the top
U.S. military officer said on Sunday. [Sounds like a plan!].
Wikileaks Docs Target Pakistan Kurt Nimmo | Pakistan is the new frontier of the
Forever War on Manufactured Terror.
Wikileaks’ War Logs Highlight Global Intelligence Facade Of ‘War On Terror’

Steve Watson | The Wikileaks Afghanistan War Logs corroborate what we
already know about the vast intelligence operation known as the “war on
terror.”
H.R. 5741 Slave bill now in Committee Rob Dew | Slavery has a new name:
“Mandatory Service.”
Oath Breakers and the Age of Treason The Excavator | America was covertly
overthrown by a tight-knit group of criminal insiders.
Iran’s military leaders try to raise their nation’s confidence in the face a possible
attack Andrew Steele | Iran’s military leaders are trying to reassure their
people that the nation would stand strong against a possible u.s. or israeli
attack.
Goldman Sachs Names European Banks It Paid Amid AIG’s U.S.-Funded Bailout
Goldman Sachs Group Inc. said it made payments to banks including
Germany’s DZ Bank AG and Banco Santander SA of Spain for mortgage-
related losses as it received U.S. taxpayer funds through theAmerican
International Group Inc. bailout in 2008.
Kucinich, Ron Paul: Get US troops out of Pakistan Two US lawmakers — a

Republican and a Democrat — proposed a bill this week demanding the
withdrawal of all US troops in Pakistan, where they are conducting covert
operations against militants.
CNN Anchors Desperately Call For Crackdown on Bloggers Which They
Collectively View as a Threat to Their Information Blockade Anchors Kyra
Phillips and John Roberts discussed the “mixed blessing of the internet,”
and agreed that there should be a crackdown on anonymous bloggers who
disparage others on the internet, most of whom deserve it.
Pentagon workers tied to child porn Federal investigators have identified several
dozen Pentagon officials and contractors with high-level security clearances
who allegedly purchased and downloaded child pornography, including an
undisclosed number who used their government computers to obtain the
illegal material, according to investigative reports.
Infowars.com Censored in Greece An Infowars.com reader sent an email today

informing us that our website is no longer available in Greek public libraries.
Sarkozy Accused of Working for Israeli Intelligence Gamal Nkrumah | A letter
dispatched to French police officials late last winter revealed that Sarkozy
was recruited as an Israeli spy.
israeli official offers warnings (Washington Post) What about israel’s illegal
nukes, israeli/american war crimes, etc.. Next stop on the israeli/american
crazy train: Iran.
Ex-CIA chief: Strike on Iran seems more likely now (AP) House OK’s possible
Israeli raid on Iran Republicans in the US House of Representatives have
introduced a measure that would green-light a possible Israeli bombing
campaign against Iran. House OK’s possible Israeli raid on Iran
Republicans in the US House of Representatives have introduced a measure
that would green-light a possible Israeli bombing campaign against Iran.
Former CIA Boss: Iran Attack “Inexorable” Kurt Nimmo | According to
Michael Hayden, a CIA boss under George W. Bush, Iran’s not having a nuke
is just as dangerous as it having one.
White House decries WikiLeaks' release of Afghan war documents Los Angeles
Times - National Security Advisor James Jones says the disclosure could
endanger lives and US security. The NY Times, which received early access,
says the documents point to Pakistan-Taliban collusion. Wikileaks releases
92000 hidden Afghan war docs Sydney Morning Herald Leaked Documents
Shed Light on Afghan War Wall Street Journal [How about the reality that
the release of war criminal american mad dogs on the rest of the world
endangers lives as well as world and u.s. security].
Army analyst linked to WikiLeaks hailed as antiwar hero: Many rally to soldier's
defense after disclosure of classified documents (Washington Post) Indeed,
if not him, then who. Pat Tillman, a late convert to that position was fragged
for it. Wobama, who was elected in large part for it, has an irrevocably failed
presidency for lack of it! He is a hero inasmuch as quite possibly the
magnitudes of the frauds might be lessened and civilians spared the
american induced ‘hell on earth’!
Push to cut top brass causing much unease (Washington Post) [ Of ‘geese and
gold-plated eggs’ … I think only fables, cartoons, and nursery rhymes are the
means by which to convey the depth and seriousness of america’s decline /
bankruptcy. They really just don’t get it. Denial. Mental infirmity. Outright
stupidity. Whatever the reason, reality is what it is. DRUDGEREPORT: America Is
'Bankrupt Mickey Mouse Economy'...
Grim Voter Mood Turns Grimmer... and others Economists Herald New Great
Depression … ] None of the Pentagon's spending cuts and budget battles is
causing more angst than Robert Gates's vow to trim number of generals and
admirals.
late for that. Congress extends war funding for Afghanistan Disappearing
Act: $8.7 Billion of Iraq Development Money Missing
Contracting industry anxious about Defense cutbacks (Washington Post) [As well
they should be inasmuch as in any rational / solvent nation, they wouldn’t be
spending what they don’t have. Defacto bankrupt america, spends what it
really doesn’t have in amounts exceeding more than the defense / military
spending of all other nations in the world combined. Yes; at long last, the
entitlement programs of the military industrial complex warned of by
underrated President General Eisenhower are in jeopardy. ]
Pentagon to cut thousands of jobs, defense secretary says (Washington Post)
[ Sure sounds like he means business; and, it’s certainly somewhat
reassuring to see a state almost as bad as mob infested pervasively corrupt
jersey, viz., virginia, take the hit (virginia is predominantly government mob,
much of which is cia at that). Yet, one must be skeptical of what this
perpetual-war, hot or cold, career cia slug is actually accomplishing with
these relatively small peripheral cuts given the defacto bankrupt status of
the nation. But, this is one of those rare instances of something being better
than nothing since guns verses butter is real economic decision-making and
reality. ]
Petraeus: Strategy is on track (Washington Post) (What strategy? It just gets

worse. america’s defacto bankrupt! Plus, we’ve heard this before! Drudgereport:
Petraeus: 'We're doing everything we can' …[Sounds like a plan!]...Builds Case
for 'Success' in Afghanistan …[If only words could make it so!]...) In Washington
Post interview, general says he sees signs of progress in Afghanistan, supports
Obama's decision to begin withdrawing troops next July.
Base in Kyrgyzstan remains on track (Washington Post) Sounds like a plan! In

Osh, no less; which similarity to Osh Kosh confers a certain ‘legitimacy’ to
america’s self-destructive, nation-bankrupting non-strategy of ‘being there’.
A new raison d’etre, so to speak! Osh, Kosh, be Gosh!
Karzai's bid to control inquiries worries U.S. (Washington Post) [My Lord! You
just can’t make this stuff up! The americanization of Afghanistan …
hopelessly corrupt … but american ‘liberators’ want their cut from the now
hopelessly corrupt liberated nation, in america’s own image, of the heroin
trade they’ve worked so hard to restore.] There is growing concern that U.S.
support for the war will diminish further if voters continue to see the Afghan
government as hopelessly corrupt.
Karzai wants private security firms out of Afghanistan: KARZAI WANTS
COMPANIES OUT U.S. calls 4-month deadline 'very challenging'
(Washington Post) One too many civilian killed. Maybe they figured out that
american non-strategy employing the Hegelian methodology of creating
problems that American firms can solve. Doomed to failure, they eventually
catch on. The bushes were famed for same but wobama has foolishly been
no slouch in this regard.
Afghans still see U.S. as bad guy (Washington Post ) [Riiiiight! Sounds like a plan
… winning hearts and minds throughout the world … great for exports also as
such ‘won hearts and minds’ just love to buy american.] American, NATO forces
retain blame for civilian deaths despite spike from insurgent violence.
with that winning plan that worked so swimmingly (as in drowning, in ie., debt,
death, regional if not wordly anti-american sentiment, etc.)]. In Kandahar, U.S.
military officials hope that a secure green zone, similar to the area in Baghdad,
will make it more difficult for Taliban insurgents to mount attacks to key buildings
in the Afghan city.

(Washington Post ) Sounds like a plan! Almost surreal was the appearance
of gates on failed network ‘news’ show to shill the non-strategy of draw
down (of troops) linked to success. What success? Just being there and
every day they’re there is unequivocally abject failure. Celebritology
Weekend: Angelina Jolie biography arrives(Washington Post ) I usually don’t
weigh in on entertainment news, but this headline concerning what appears
to be a disparaging, and quite selectively so, purported biography of
Angelina Jolie is very disheartening when you consider the numerous
instances of failed leadership at nearly all very high levels of government
having so detrimental an impact on the world, that morton deems his time
appropriate to an actress who has actually tried to do good things (U.N.,
etc.) without having to. Indeed, even her latest film ‘Salt’ (spectacular by any
standard as is her performance – there are at least 2 winning sequels there
with 4 the max and stretching it owing to age – she puts all, and I mean all
the ‘Bonds’ to shame) had an important message in terms of the damage to
this nation by a seemingly endless, nation-bankrupting, anti-american (war
criminal israelis already, and quite correctly, globally hated) sentiment
producing war strategy that is neither strategy nor reasonably consistent
with any positive american goal / objective; but rather is such a debacle and
folly that the same could very well be one that only an enemy of defacto
bankrupt america could hatch and for the reasoning set forth in the well-
written / directed film. She astutely observed and talked about the
synchronicity of the film as juxtaposed to recent events revealing that she
is wiser than most in Washington.
Baltimore Co. Independent Examiner | Congress voted to extend funding for
the war in Afghanistan by an additional $59 billion late on Tuesday.
Tony Montana, to To Mon el Swahili and recut ‘Scarface’ to reflect an
him fragged.
Obama reminds veterans he's beginning war's end (Washington Post) Sounds
like a plan! I mean, after all you must have a beginning before you have an
end. Yeah, there’s a certain ineluctable logic to that; a certain ‘ring’ to it! Like
full circuit ‘b*** s***!

come on! An israeli probe of an israeli massacre of civilians. Time for israel to
pay; for illegal nukes, for violations of international law, for continued violations
of u.n. resolutions, for provocations as pretexts to sabotage peace talks, and on
and on ad nauseum. Why does america among other nations feel compelled to
sacrifice themselves for the sake of a global criminal nation with an insatiable
greed and blood-thirst as israel?
Murder on the high seas JERUSALEM: Israeli marines stormed aid ships bound
for Gaza on Monday and at least 10 rights activists were killed, triggering a
diplomatic crisis and an emergency session of the UN Security Council.
European nations, as well as the United Nations and Turkey, voiced shock
and outrage at the bloody end to the international campaigners' bid to break
Israel's blockade of the Gaza Strip
How does anyone take the u.s. seriously in light of their credibility problems, war
crimes, etc.? What nuke technology israel didn’t steal from the u.s., the u.s.
gave them along with missile, armaments, etc.. and paid for with taxpayer
money that u.s. taxpayers and the defacto bankrupt nation don’t have.
It's time to expel israel from the UN Without doubt, the israeli attack on the Gaza-
bound "Freedom Flotilla" in the dawn of Monday, May 31, 2010 is one of the
most savage crimes in recent history. It seems the ruling power in Tel Aviv
has been afflicted with a variant of mad cow disease; otherwise, how could it
be so cruel to unleash such a beastly raid on the "Mavi Marmara," the
Turkish flagship of a flotilla carrying medical and humanitarian supplies to
the hapless people of Gaza Strip?
The israeli Spin-Machine in Overdrive: dershowitz to the Rescue? Armed Israeli

commandos, the elite of the elites, rappelled to the deck of a Turkish ship
carrying humanitarian relief supplies to the 1.5 million prisoners in the Gaza
concentration camp.


WORLD!
ISRAEL NOW IN FAVOR OF NUKES IN THE MIDDLE EAST IN SUDDEN SHIFT IN
POLICY TO FAVOR IRAN IN A VERY BIG WAY! ISRAEL SEES THE LIGHT
AND SIDES WITH IRAN ON NUCLEAR ISSUE; ESSENTIALLY SAYS TO THE
WORLD AND IRAN ‘TO PRESS ON WITH NUCLEAR AMBITIONS’.
Girdles for men? (Washington Post) [ I’d say par for the course … of human male
evolution that is. After all, more and more peoples are referring to the war
mongering american male trend of warring on the far less militarily capable,
bullying if you will, as just a bunch of c***s. ]They call it "men's shapewear,"
but ladies, we know that you know what that really means. Spanx for Men
debuted to such a success this year that the company is coming out with a
line of (gulp) bottoms for the fall.
Rockefeller Study Envisages Future Dictatorship Controlled By Elite …

(Vegetables … Yes, Asparagus, not Broccoli) … Here’s the pathetic news,
however; it’s called reality: [Neanderthals, Humans Interbred, DNA Proves
see here http://www.albertpeia.com/anthroindex1.htm Previously I
wrote: FOUND: MISSING LINK BETWEEN APES AND MAN.... These
stories, and the many like it, are old news and I subscribe to the more
studied view that there is no “missing link” per se and in my view they are
distinctions without significant differences. I previously wrote: [see infra]
and [Interestingly, my intuitive (but unstudied) thoughts prior to closer
examination of the compelling subject of Biological Anthropology remain
what I believe to be the correct scenario. Specifically, very simply stated, for
the most part, the more “enlightened” (but not by much; by mutation,
accident, luck, intervention, etc.) left the unvarying confines of their Sub-
Saharan origins, experienced diverse new environs, challenges, etc.,
experienced what has been described (by neuroscientists, psychologists,
etc.) as neurogenesis in varying degrees and forms thereby over time, which
trait was selected for and is consistent with the purported multi-regional
evolutionary model which does not overtly contradict ultimately, initial
African origins. Races, sub-species, missing links, etc., are subsumed in
this very humbling and sorrowful tale of the “dawn of man”.] [see infra] …]
Global pandemics that kill millions, mandatory quarantines, checkpoints,
biometric ID cards, and a world of top-down government control. These
things are not lifted from the latest sci-fi blockbuster movie, they’re part of
the Rockefeller Foundation’s vision for what the globe might be like in 15-20
years’ time under a new world order tightly controlled by the elite. [That’s
getting awfully close to the outside ‘decades, not millennia or even
centuries’].
Middle East Digest (Washington Post) Witnesses report Israeli airstrikes in Gaza
Previous-Mideast Digest Israeli shelling kills 2 wounds 6 Gaza civilians:

(Washington Post) [War criminal israelis justified their attack saying when the 10
year old girl grew up to be a woman she’d be prepared to fire rockets at them …
press on says fellow war criminal defacto bankrupt nation america] israeli
shellfire killed two Palestinian freedom fighters and wounded six people,
including a 10-year-old girl, in the Gaza Strip, Palestinian medical workers and an
official with a militant group said. An israeli military spokeswoman said soldiers
opened fire on militants suspected of preparing to fire a rocket at them.
July becomes deadliest month for U.S. troops (Washington Post) Sounds like
plan! You know, the fraudulent wall street glass half full kind of thing …
lowering of costs of prospective medical, benefits, pension … well, in truth,
I’m not sayin’ that they said that, but you’re dreamin’ if you don’t think they
think like that. You know, the new ‘attention to deficits disorder’ in light of
the nation’s defacto bankruptcy. What a total waste in every respect!
Comment on: Mideast Digest at 8/4/2010 5:44 AM EDT

Mideast Digest (Washington Post, August 4, 2010) Blowback’s a reality. One that
only fools would ignore, defacto bankrupt america. Time to throw hated war
criminal nation israel under the bus. Why should america sacrifice itself for the
war mongering israelis. They’d NEVER do that for america. I’ve even heard
analysts with regional expertise say that the nation was better off under sadam.
Top Secret America: How the DOD does it (Washington Post) Does what? Come
On! You can’t take this guy seriously. First, he’s military; what do you expect him
to say. Second, he talks of wars as if they always have to have one or be
searching for one and we all know they “find” them. Finally, he all but ignores
what the underrated President General Eisenhower warned of in the form of the
unscrupulous, insatiably greedy military/industrial complex which as colonel he
but a very small cog in who goes along to get along. The fact is also that they
can’t be managed and also that they don’t even try!
Afghanistan war deaths (Washington Post) What a colossal waste; the u.s. might
even spin this to a growth scenario, albeit in deaths. For General Petraeus,
battling corruption in Afghanistan is a priority (Washington Post) If Betraeus is
serious, he better look closer to home / u.s.!
SEC enforcers get to keep subpoena authority
NSA beats warrantless wiretap rap A Federal judge has dismissed a complaint
against the National Security Agency’s (NSA)
Corrupt u.s. courts / judges: Their lifetime plush appointments should be

abolished, which corrupt entities are unheard of in productive societies as
China, Japan, etc.. Time to abolish these drags on society and eliminate
their lifetime stipends and corrupt costly bureaucracies.
WikiLeaks documents cause little concern over public perception of war:

WikiLeaks documents cause little concern over public perception of war
(Washington Post) Of course not! That’s what defacto coup d’etat is all about
(even beyond their propaganda). The public, overwhelming against these nation-
bankrupting illegal wars (america is defacto bankrupt) which fact propelled
spineless incompetent vegetable wobama to the whitehouse, has become
irrelevant in their view,; but, not so fast as mass unrest is afoot.
Ron Paul: After ‘CIA coup,’ agency ‘runs military’ US House Rep. Ron Paul says
the CIA has has in effect carried out a “coup” against the US government, and the
intelligence agency needs to be “taken out.” I also personally believe there has
been a defacto coup d’etat which has manifested in various substantial, blatant,
brazened frauds, ie., wall street, missing 360 tons of $100 bills in Iraq, war
profiteering, etc., without any fear of prosecution, and of course concomitant
decline for u.s. as the treasury is looted. But I also believe its scope is beyond
just the CIA with many complicit within the corrupted 3 branches of u.s.
government (fed judges, us attorneys, illegal system, etc.) plus the military and
private big money, ie., Goldman Sachs / wall street men, etc., among other
organized crime. america is defacto bankrupt in every way!
In Iraq, $2.6B unaccounted for (Washington Post) [Daaah! Fog of war frauds
among others; the nation’s treasury pillaged and plundered; I’ve previously
commented here and included on my website http://albertpeia.com , see infra]
Pentagon can't account for how it spent $2.6 billion of Iraqi oil proceeds, an IG
report says.
Articles on Catherine Austin Fitts' Blog: http://solari.com

Billions over Baghdadby Donald L. Barlett and James B. Steele - Vanity
FairSeptember 2007
Those Who Blow Whistle on Contractor Fraud in Iraq Face PenaltiesDeborah
Hastings - APAugust 2007
Auditor Quits with NASA Finances in ChaosBy Arindam Nag and Deborah
ZabarenkoMay 15, 2004
The War on WasteCBS NewsCiting "cooked books" at DoD, Rumsfeld on the
missing $2.3 trillion, ... January 29, 2002
Military Stashes Covert Millions St. Petersburg TimesSeptember 28, 2003
Key Documents
U.S. Department of Defense Web Site "The technology revolution has
transformed organizations across the private sector, but not ours, not fully, not
yet. We are, as they say, tangled in our anchor chain. Our financial systems are
decades old. According to some estimates, we cannot track $2.3 trillion in
transactions. We cannot share information from floor to floor in this building
because it's stored on dozens of technological systems that are inaccessible or
incompatible."- Remarks as Delivered by Secretary of Defense Donald H.
Rumsfeld, The Pentagon, Monday, September 10, 2001 Independent Audit Report
- Department of DefenseRe: $1.1 Trillion Missing from DODFebruary 26, 2002
Testimony of the Inspector General - Department of Housing & Urban
DevelopmentRe: $59 Billion Missing from HUD March 22, 2000 Discrepancies in
America's Accounts Hide a Black Hole By Daniel Gros, Financial Times June 15,
2006
Road to Ruin by Eric Sprott, Sprott Asset Management Regarding the $11 Trillion
Deficit in the US Government in FY 2004January 2005
U.S.' Missing $Trillions Make Mainstream At LastScoop Media's version of the
Chronicle Story with more links addedMay 26, 2003
Dillon, Read & Co. Inc. and the Aristocracy of Stock Profits by Catherine Austin
Fitts A case study of two teams each with competing visions for America.April
2006
Estimate $3.3 Trillion Missing From U.S. Treasuryby Buddy Grizzard An excellent
overview integrating coverage by key investigative journalists August 2002
Where is the Collateral? and So, Where is the Collateral?A two-part series by
Chris Sanders of Sanders Research Associates in London
These articles connect the dots between the missing money, the Where is the
Money? litigation, questionable HUD deals, and the impact on the investment
communityOctober 2003 and July 2004
U.S. "Could Be Going Bankrupt"by Edmund Conway, Economics EditorUK
TelegraphJuly 2006
whereisthemoney.org Web site documenting the missing money -- includes
petition, FAQs, Who's Who ... also available in Spanish

beyond control...
etc., to spend it on.
jailed, fined, and disgorgement imposed. (Cases against Wall Street lag
despite Holder’s vows to target financial fraud Obama broke promises ):

Trends ]
‘The Obama Deception’ Censored ‘In light of this development, I provide an

archived site version which appears to be complete
http://albertpeia.com/obamadeceptionhighqualityversion.flv

Web Site Archived FLV Version of Esoteric Agenda

http://albertpeia.com/esotericagenda.flv
SEC enforcers get to keep subpoena authority (Washington Post) I believe that
they should also be empowered to bring criminal charges inasmuch as the
doj and u.s. attorneys offices thereunder seem either unwilling, lacking
courage, incapable, without specific knowledge in the securities field (inept),
or just, as is my experience, plain corrupt, politically motivated, and venal.
This national decline, economic and otherwise, will not end until justice is
served and, ie., the wall street frauds et als are criminally prosecuted, jailed,
fined, and disgorgement imposed.
FBI could get easier access to Internet data (Washington Post) I hope so; at least
as to my data; then there will be no excuse for lack of resolution in
accordance will meaningful law. The fact is, they already have the relevant
data under penalty of perjury on disk. Moreover, it’s been assigned out here
and I’ve once again offered to take a polygraph on any and all matters.
There is really no way to rationalize or attempt to justify what america is / has

become since they have with open eyes chosen this contra-indicated course
of ineluctable decline, from illegal wars, to war crimes, to backing war
criminal nations as israel, to huge frauds, to war profiteering, to illicit drug
trafficking and money laundering, and this list goes on and on …:
(Previously) I’d say this alito vs. wobama is a tempest in a teapot inasmuch as
alito is more than just a lightweight, hack, liar, fraud etc., as set forth in the
comments. alito is a criminal who should have served / should be serving time in
prison for obstruction of justice, bribery, among other RICO violations. To alito,
drug money is as green as corporate money and worth his vote as well. In
addition to being an inept [I looked in on the one mob case he had brought,
bungled, lost (accidently on purpose?) since I was suing some mob-connected
under RICO and the court (I had known / previously met outside of court the
judge Ackerman through a client) was absolute bedlam and a total joke since
incompetent corrupt alito brought in all 20 mob defendants (rather than prosecute
one or a few to flip them first) who feigning illness had beds/cots in the
courtroom along with their moans during testimony and had the jury in stitches)]
and corrupt (see below and particularly the summary provided to the FBI under
penalty of perjury [
ury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ] ) u.s.
attorney.
You’re naïve to think that the so-called supreme court is any different from the
rest of the meaningfully lawless and pervasively corrupt american ‘system’. I
knew well an accomplished trial lawyer, fellow american college of trial lawyers /
and a bar examiner, who pondered from time to time becoming a judge “so he’d
never have to work again” – his words.
Some comments on alito…all appropriate:
Probably the worst appointment in one hundred years.

Posted by: mnjam
-----------------------
Really? That's a pretty sweeping statement to make about someone who's only
been on the court a short few years.
And I thought that liberals were in universal agreement that Clarence Thomas
was the worst appointment in all of history?
Posted by: blert | January 28, 2010 2:11 AM | Report abuse

----------------------------
Yes. Really. Alito is a total lightweight and hack. He makes Thomas look like John
Marshall or Oliver Wendell Holmes. I KNOW ALITO.
Posted by: mnjam | January 28, 2010 2:24 AM |
the loser here is alito.lost his composure not good for a judge especially afederal
or supreme justice .loser big time this will live with guy for a very time.roberts
and the other justices will have a talk with him that is a given.this relly larger than
o one day news cycle.
Posted by: donaldtucker | January 28, 2010 1:12 AM |
Should Alito resign or be impeached?

Posted by: jdmca | January 28, 2010 1:05 AM |
Manchurian Candidates: Supreme Court allows China and others unlimited

spending in US elections Greg Palast | Our future elections may come down
to a three-way battle between China, Saudi Arabia and Goldman Sachs.
Call For Immediate Arrest of 5 Supreme Court Justices for Treason Gordon
Duff | The bloated corpse we are creating in Washington is emitting a stench
we can no longer abide. The aforesaid would be shocking to anyone
without a modicum of knowledge of the reality of pervasive corruption within
the u.s. courts themselves and america generally, including all three
branches of the u.s. government.
Rendition: Where the War on Terror Meets the War on Drugs Henningsen | It’s
time to ditch the policies we have come to tolerate for decades before they
consume what is left of our moral core. I’ve experienced the corrupt inter-
relationship of the government (all 3 corrupt branches) and the illegal drug
trade / obstruction of justice / bribery first hand, particularly the courts / u.s.
attorneys offices (ie., alito – now u.s. supreme court justice – quid pro quo
for his complicity / cover-up), feds; see immediately after article excerpt for
links / summary.
…“Evidence points to aircraft – familiarly known as “torture taxis” – used
by the CIA to move captives seized in its kidnapping or “extraordinary
rendition” operations through Gatwick and other airports in the EU being
simultaneously used for drug distribution in the Western hemisphere. A
Gulfstream II jet aircraft N9875A identified by the British Government and
the European Parliament as being involved in this traffic crashed in
Mexico…” In 2004, another torture taxi crashed in a field in Nicaragua with
a ton of cocaine aboard… Mexican soldiers found ..132 bags containing 3.3
metric tons of cocaine. The origination of the Gulfstream’s flight is
unknown but it was destined for Cancun when it crash landed. Again, here
is the important point: that same Gulf Stream II was one of the very same
planes chartered to the CIA for the rendition of suspected terrorists
prisoners. Gulf Stream II crashed in Mexico with 3 tons of cocaine on board ..it
should not be surprising that this illegal practice of rendition has in some
part, been used as a well-run smokescreen for another borderless illegal
operation- an extremely lucrative international transfer and delivery of cash
and narcotics.,,These flights are not subject to regular customs checks,
inspections or normal regulations as they move seamlessly between
destinations in the US, Britain, Europe, Middle East, Central Asia, Cuba and
possibly through US bases in Turkey, Greece and Morocco…

their lifetime stipends and costly bureaucracies. Rules of law mean nothing
to these typically corrupt americans. Most, including sam alito of the u.s.
supreme court, concerning drug money laundering and obstruction of
justice in the 3rd circuit ( also maryanne trump barry who covered-up drug
money laundering through her brother’s casinos in a civil RICO case) should
have gone to or belong in jail. Contrary to popular belief, they do it for the
money, personal money, big, cash, untraceable money. The fog of war is
great for such things (360 tons $100 bills flown into Iraq and missing, etc.).
[ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofpe
rjury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm
].

There must be such things as parallel universes (I don’t really believe that,
because there isn’t) or how else do you explain the disconnect between
reality, current and prospective, and the wet dreams posited to keep the war
funding / corporate welfare programs alive in collectively what has already
become a trillion dollar boondoggle (not counting prospective medical
costs, etc.) and promises to go much higher. Even israel apologist Cohen of
The Washington Post alludes to the Vietnam analogy. However, even if there
were real goals beyond the poppy / heroin trade which the Taliban had all
but eradicated (there isn’t); even if america wasn’t defacto bankrupt (america
is); even if america wasn’t killing innocent civilians in large numbers (war
criminal nation america is); even if america’s allies haven’t similarly helped
to bankrupt themselves by way of this war (they have); even if I hadn’t told
you so (I did) ….. this war still was, is, and remains a very bad idea!
Afghan war overtakes Vietnam to become the longest conflict in U.S. history Mail
Online | The war entered its 104th month yesterday, with 30,000 American
troops being deployed in the first half of this year alone.
You think Iraq was bad? Invading Iran ‘would be lunacy’ Ivan Eland, Director of
the Center on Peace and Liberty at the Independent Institute in Washington
DC, gives his opinion on new sanctions imposed on Iran.
I include the first two comments to the foregoing headline:
Billo Says:
June 11th, 2010 at 6:15 am
Lunacy? Keep in mind that this country is run and controlled by lunatics. Our
press government and military seem to take their orders from Israel. Isarel wants
to be known as a pack of “mad dogs. Do we want “mad dogs” controlling us?
Here we see a bunch of phony accusations against Iran just like we did in the run
up to the bogus wars in Iraq, Afghanistan and now Pakistan. The boy has cried
wold ten thousand times. It’s time to identify the “lunatics” and kindly take away
the car keys. If you won’t let your friends drive drunk, why do we let a bunch of
“lunatic” enemies run this place.
Glen Reply:
June 11th, 2010 at 6:47 am
Lunacy it would be.
But it is also to their great credit that the Iranians have not made their own
threats.
Everyone knows there are 3 WMD threats, Nuclear Biological and chemical. The
scariest of which is Biological.
Any attack done under the threat of immediate biological retaliation would deter
only the insane.
Watch out america home of the insane, home of the leaders who want an 80%
population reduction.
General McChrystal’s Burning Contempt for the Puppet Obama The farce that is
the war in Afghanistan is coming apart at the seams. General Stanley
McChrystal’s sharp comments about Obama, Biden, and the administration
published by Rolling Stone are not so much about disrespect, as the script-
reading corporate media talking heads would have it, but rather about a
policy in disarray in Afghanistan.
Gaza blockade illegal, must be lifted — UN rights official Israeli blockade of

Gaza unsustainable: White House US Jewish opinion and the ‘Beinart
moment’ The controversial book, The Israel Lobby, in which the political
scientists, John Mearsheimer and Stephen Walt, argued that US foreign
policy has been hijacked by organized Zionism went strangely unnoticed by
the leading journal of American intellectual opinion, the New York Review of
Books. Doubts Grow Over Israel’s Value as U.S. Ally Jim Lobe | The notion
is that Israel and its actions have since the Cold War increasingly become a
“strategic liability” to U.S. interests in the region.
Mideast Digest Israeli shelling kills 2 wounds 6 Gaza civilians: (Washington Post)
[War criminal israelis justified their attack saying when the 10 year old girl grew
up to be a woman she’d be prepared to fire rockets at them … press on says
fellow war criminal defacto bankrupt nation america] israeli shellfire killed two
Palestinian freedom fighters and wounded six people, including a 10-year-old girl,
in the Gaza Strip, Palestinian medical workers and an official with a militant group
said. An israeli military spokeswoman said soldiers opened fire on militants
suspected of preparing to fire a rocket at them.
A Plague Upon The World: The USA is a “Failed State” Dr. Paul Craig Roberts |
The American people are lost in la-la land. They have no idea that their civil
liberties have been forfeited. US citizen killed on flotilla reportedly shot four
times in head Raw Story | A forensic report said Furkan Dogan was shot at close
range, with four bullets in his head and one in his chest, according to the
Anatolian news agency. The explanation foisted off on the americans by war
criminal israelis is probably something on the order of ‘they just wanted to make
sure they missed him’. Roberts: ‘AIPAC purchases US elections’ Russia Today
| Paul Craig Roberts says that there will be nothing that is going to be done by the
United States to change the relationship with Israel.
‘US funding terrorist group against Iran’ Press TV | A member of a terrorist
organization operating in Iran says that a US State department radio station
originally put him in touch with the group.
Paul Craig Roberts: Government Abandoned Vietnam POWs Kurt Nimmo | John
McCain worked overtime to make sure Vietnam POWs never came home. I think
the even bigger story vis-à-vis mccain is:
http://www.albertpeia.com/heroenot.htm ‘Did you know that that so-called
"american heroe" john mccain was referred to by his fellow pows in Vietnam as
something akin to the "songbird" inasmuch as he was constantly "singing" to his
Viet-Cong captors to curry favor and better treatment? This has been
documented with authority by Colonel David Hackworth. The same violates
military code/protocol (other soldiers have been court-martialed for far less) click
Here, Here. [ http://www.albertpeia.com/hackworth.htm ] But, you see, this
covered up scenario, compromizing the false facade of far less than a heroe, is
exactly what a criminal (lie of a) nation as america loves and encourages (get
everyone's hands dirty so no-one dares to rectify same, ie., bush, sr., clinton,
bush, jr.). That is, "toe the (corrupt, propagandized) line", become a criminal, or
be exposed, prosecuted, and/or ruined; and, hasn't anyone asked how "wall
street" has been "spared the spotlight" (and even was accorded protective
legislation from their criminal culpability) and focus of inquiry, attention, and
prosecution despite being the primary beneficiaries financial and otherwise of
these scams (you know the wall street motto, "churn and earn"; huge conflicts of
interest if not outright fraud)…’
Coalition wants UK space lift-off [ Don’t make me laugh! ]
Israel’s Nukes Out of the Shadows Israel faces unprecedented pressure to
abandon its official policy of “ambiguity” on its possession of nuclear weapons
as the international community meets at the United Nations in New York this
week to consider banning such arsenals from the Middle East.
NASA wants mission to bring Martian rocks to Earth (AP) Why? They already
have that and more:

“battlespace.”

(IMAGINATION).

fraud!
http://www.albertpeia.com/UFOetryWeNeverWentToTheMoonPNTV.wmv
Editorial: US in quagmire Seeing the warm welcome extended to the Afghan
president on his US trip, it is hard to believe that only weeks ago
Washington was seething with anger and frustration at Hamid Karzai’s
behavior and there were even dark mutterings by US officials that he might
be mad.
War in Afghanistan and Iraq costs America $1trillion From the Old | On May 30th at
10:06 the United States reached the point where they have spent $1trillion on
the wars in Afghanistan and Iraq. Sinking of the Cheonan: A Classic
False Flag Operation Russia Today | Sinking of the warship was really
intended to convince Japan not to move US forces off Okinawa as well as
divert the attention of Americans from the dire economic situation at
home. . Israel: IDF Troops Who Murdered Unarmed Innocent People
Are ‘Brave Heroes’ The government of israel, aided by many quarters of the
international media, is attempting to spin today’s deadly IDF assault on a
humanitarian aid ship carrying supplies to Gaza as the fault of the murdered
activists on board the vessel, ludicrously characterizing machine-gun
carrying Israeli troops who killed over a dozen innocent people as the
victims of the incident.
Israeli American Microbiologist Linked to Deadly Fungus Kurt Nimmo | A report

links labs in the United States and Israel to the Cryptococcus gatti fungus
that has killed several people in the United States.
Iraqi doctors demand cancer probe Al Jazeera | Iraqi doctors believe depleted
uranium from US military equipment used in the 2003 invasion is spreading
cancer through the population. [This is all too true and real; and I’m
surprised this hasn’t gotten more attention, coverage … well, maybe not that
surprised ].
"What this means is that Neanderthals are not totally extinct. In some of us, they
live on," Paabo … With regard to that extinction thing, I’d say they’re still
working on it (ultimately, decades, extinction, the distinction, without a
difference). Actually, prior to studying the compelling subject of Biological
Anthropology (Michael Park text), I too had some misconceptions about the
group known as Neandertals (recent spelling drops the ‘h’) and actually mis-
referenced same by the stereotypical image of members of said clade even
as the debate continues as to whether they are within the species homo
sapiens or a separate species. I believe these to be distinctions without
important differences, so humble the origins and evolution of man truly are.
Parenthetically, I wonder what that anthropological scientist Heidi Klum
thinks on the subject.
Neanderthals, Humans Interbred, DNA Proves

see here http://www.albertpeia.com/anthroindex1.htm
Previously I wrote:
FOUND: MISSING LINK BETWEEN APES AND MAN.... These stories, and the
many like it, are old news and I subscribe to the more studied view that there
is no “missing link” per se and in my view they are distinctions without
significant differences. I previously wrote:
To Learn More About From Whence Man Came, This Link's For You
[To the Professor at the beginning of the course]
10-5-09 Postscript: Professor *****,

I felt compelled to thank you again for the add; not to curry your favor but indeed
to express profound thanks inasmuch as this is probably the last formal course
at a formal educational institution I'll ever take; and among the most important.
While I had bought at discount a library-discarded 1993 Anthropology by Embers
text, though meaning to read same never quite got to it. I am astounded by the
substantial amount of time involved in the evolutionary process, not that I ever
stopped to think about it, and one must come away with the sense of 'and all
that...for this?'. This course should be required curriculum along with
psychology, sociology, etc., but probably won't be owing to what is, as it should
be, a very humbling educational experience for any member of the human race.
Regards,
Al Peia
[Interestingly, my intuitive (but unstudied) thoughts prior to closer examination of

the compelling subject of Biological Anthropology remain what I believe to
be the correct scenario. Specifically, very simply stated, for the most part,
the more “enlightened” (but not by much; by mutation, accident, luck,
intervention, etc.) left the unvarying confines of their Sub-Saharan origins,
experienced diverse new environs, challenges, etc., experienced what has
been described (by neuroscientists, psychologists, etc.) as neurogenesis in
varying degrees and forms thereby over time, which trait was selected for
and is consistent with the purported multi-regional evolutionary model
which does not overtly contradict ultimately, initial African origins. Races,
sub-species, missing links, etc., are subsumed in this very humbling and
sorrowful tale of the “dawn of man”.]
[Abolish the corrupt, costly, economically wasteful lifetime extravagantly
appointed federal courts - see RICO case [
perjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ]
Don’t Tread On Me: A Refresher Course on the Constitution
Sen. Levin urges State Department to put Afghan Taliban on list of terror groups
(Washington Post) Oooooh! … Sounds like a plan … and emanating from
washington (and a thriving Michigan jew no less) … who says they don’t do
anything? … And, consistent with that apocalyptic vision set forth in the
Bible [albeit a book of truth from a very limited perspective (for which literal
interpretations are misleading); after all, the Wise Men thought it was a
movable star that was guiding them and shone the bright ‘spotlight’ upon
the manger with the Christ]; the jews and some other entity against the rest
of the world for that final Armageddon … oh, they’ll make that happen … it
gets them through their day with every step closer to apocalypse but not to
the place called heaven will they go. The end of this world? You might say
america / israel / and theirs are feverishly working on just that, one way or
another!
Roman Polanski freed after Swiss reject U.S. extradition request (Washington
Post, July 13, 2010) Without diminishing in any way the seriousness of the
crime, this result is the direct consequence of the growing global
recognition of the pervasiveness of corruption in american courts, state and
federal, and america generally; so much so, that said corrupt american
courts cannot be relied on anywhere, anytime. Indeed, my own sampling,
though hardly random to be candid, is 5 for 5 (new jersey, new york,
connecticut, virginia, california) pervasively and egregiously corrupt to the
point where these costly, corrupt bureaucracies should be abolished and
supplanted with alternatives as I’ve previously set forth in these comments.
BUDGET CRISIS PUTS LOS ANGELES COURT SYSTEM AT RISK ... [Judge
sends Lohan to jail for probation violation (AP) – They got her! That globe-
trotting danger / threat to society, the infamous public enemy Lindsey
Lohan. Guess she couldn’t cough up that direct or indirect bribe. How
pathetic these corrupt, kangaroo courts are! If only she was a drug dealer,
armed robber, etc., she would have had the pre-paid connections to avoid
this preposterous (known substantial criminals walk about freely, without
fear) outcome. This, even as they are releasing substantial felons owing to
budgetary considerations. ] ABOLISH THE CORRUPT, ECONOMICALLY
WASTEFUL SO-CALLED SYSTEM, FROM MY DIRECT OBSERVATION AND
EXPERIENCE . (PREVIOUSLY ARCHIVED) HOWEVER, THIS LATEST
"CALIFORNIA/LA DISTRACTION" REQUIRES ELUCIDATION AS FOLLOWS:
· Response to App. Div. OSC
· STATE OF CALIFORNIA ethics complaint
· Response to Sup.Ct. OSC
· designation of record on appeal
· The so-called "order" appealed from.

How embarrassing for the superior court of the state of california!
· Typical corrupt banana republic america/california court
Dirty money digitally laundered … a wall street, atlantic city, and american
story … a very bad one and [also see RICO case
ofperjury.pdf
Fraud: It’s Much Bigger Than Goldman Sachs Regulatory reform debate
obscures key fact: Everybody’s getting money bribes from Wall Street
Blagojevich calls feds 'cowards and liars'…[Yes. This is a rare moment for
one to say that a sleazy hypocrite like blago, who is on corrupt federale-
connected mobster trump’s celebrity apprentice, happens to be correct
based upon facts / reality and my own direct observation and experience
and the law – Don’t forget to include corrupt federal judges as maryanne
trump barry, sam alito, shiff, matz, hall, underhill, dorsey, etc.. Defacto
bankrupt america’s so-called system is pervasively corrupt and broken]
(AP) [Abolish the corrupt, costly, economically wasteful lifetime
extravagantly appointed federal courts - see RICO case [
perjury.pdf
No shame, just blame (Washington Post) Come on! This is america today. Look at
wobama … lied his way in and no shame … typical … criticism just like
water off a duck’s back. I think he’s content to be a failed president just so
he can do as he does best on the speaking tours as a retiree from the office
… b*** s***! They’re all the same. Legislated raises for themselves in
congress as the nation was bleeding jobs, legislated NAFTA and gave huge
wall street frauds money and still no pros, but that’s where the campaign
funds are. No guts! Pervasively corrupt and meaningfully lawless,
america’s done! And america’s defacto bankrupt in every way.
Executive compensation 'ill-advised,' pay czar says (Washington Post) But, as

with prosecutions thus far, does nothing. The american companies have
failed, but their compensation check writing has not.
JUSTICE... Justice official quit over the handling of a voter intimidation
instructing attorneys in the civil rights division to ignore cases that involve
black defendants and white victims Cases against Wall Street lag despite
Holder’s vows to target financial fraud Obama broke promises ):

Trends ]

How much is $1.4 trillion? | Doing the math (Washington Post) Math? How
plebian a task on capital hill. I think the lack thereof is as much a lack of aptitude /
intelligence as it is a lack of will. And, this is a bi-partisan foible. According to the
Debt Clock (approx. two months ago):
• Total national debt: $13 trillion (near 13.3 now)

• Debt per citizen: $42,026
• Debt per taxpayer: $117,982
• Total interest due: $1.9 trillion
• Interest per citizen: $2,211
Click here to see the Debt Clock, which is updated every second.
• Total personal debt: $16.5 trillion

• Total mortgage debt: $14.1 trillion
• Total consumer debt: $2.45 trillion
• Personal debt per citizen: $53,483
• Debt held by foreign countries: $4.07 trillion
http://www.usdebtclock.org Get Real Time U.S. Debt Data
Big banks pass stress tests (Washington Post) They’ve swallowed the american
paradigm of fraud and b*** s***, hook, line, and sinker and sink they will as
yet another reason is manifest in the ‘death of the west’ (as coined by
Buchanan), displaced by emerging economies, asia, most notably China,
etc., where they tend not to lie to either themselves or others. No wonder the
failed ‘nation states of the west’ are joined at the hip in such ill-fated
ventures as illegal wars, past and present, among many other strategic
blunders.
Deficit to exceed $1.4 trillion in 2010 and 2011 (Washington Post) Sounds like a
plan! … However, unlike other american plans, this is one that they’re sure
to accomplish!
Jobless claims jump higher than expected (Washington Post) Sounds like a
reason for a feel good rally on fraudulent wall street, however ephemeral.

instead of 2010.
latest.
2010 and 2012
They ensured financial regulation overhaul (Washington Post) What overhaul?

New bureaucracy, more power to the fed and corrupt incompetents as tiny tim
geithner (that $4 trillion’s still missing from the ny fed), no recession helicopter
ben bernanke, perps scot free and keep their loot, etc.. Real reform requires that
the wall street frauds et als be criminally prosecuted, jailed, fined, and
Existing-home sales drop for second month (Washington Post) Bad economic
news … what better reason for a typically fraudulent suckers’ bear market, short-
covering rally for the high-frequency computerized churn-and-earn wall street
frauds to commission and ultimately sell into.


Worth it? Three U.S. Embassy guards killed in rocket attack in Baghdad's Green
Zone (Washington Post) Big yes here since ‘The Green Zone’ got Hollywood
movie status. 2 More Americans killed in copter crash in Afghanistan (AP)
Not so much, unless they rename Tony Montana, To Mon el Swahili and
recut ‘Scarface’ to reflect an Aghanistan Heroin connection, or similarly
change ‘Hurt Locker’. It’s a good thing for the military that IQ tests aren’t
required.
netanayahu admits on video he deceived US to destroy Oslo accord The contents

of a secretly recorded video threaten to gravely embarrass not only
Benjamin netanayahu, the Israeli prime minister but also the US
administration of Barack Obama.


Zahedan.

The U.S. Economy Is A Dead Horse And The American People Are Starting To Get
Really Angry And Frustrated The economic frustration of the american
people is reaching a fever pitch. Millions of americans can’t seem to get a
good job no matter what they do.
Three of every four oil and gas lobbyists worked for federal government
(Washington Post) This is an important article but in no way should be limited
to the oil and gas industries even if disproportionate to the upside, even as
wall street has actually begun occupying capital hill in a manner of speaking.
The revolving-door standards and the functions of ‘toll-bridge to taxpayer
dollars’ must end. After all, you see, the nation is defacto bankrupt! ‘Three
out of every four lobbyists who represent oil and gas companies previously
worked in the federal government, a proportion that far exceeds the usual
revolving-door standards on Capitol Hill, a Washington Post analysis shows’
Good credit isn't what it was (Washington Post) Gee! I thought this article was
about america, pre-defacto bankruptcy compared with now.
Leading Chinese Economists Urge Government To Dump U.S. Treasuries, Buy

Gold Prominent economists in China are calling for their government to
ditch vast holdings of U.S. Treasuries in favour of tangible assets such as
gold, a move that would have a far reaching impact on the economy.
Bernanke: Fed ready to step in if economy falters (Washington Post) Step in with
what? Another two step (backwards)? They’ve ‘shot their wad’. Moreover,
they can’t print the ever more worthless Weimar dollars any faster.
Stocks drop as Bernanke warns of uncertain economy (AP) One of those daaah
moments courtesy of ‘no recession helicopter ben fed’! On the positive
side, however, at least a semblance of reality is extant as opposed to
stroking the frauds on wall street to facilitate their churn-and-earn high
frequency trade scams (those lofty fraudulent peaks provide room to
trade in and are great to sell into). Bernanke 'uncertain' about
economy's outlook The Federal Reserve chairman says the outlook for
the economy is “unusually uncertain” and that the central...
Bernanke's economy comment batters market (Reuters) - Reuters -
Federal Reserve Chairman Ben Bernanke's dour assessment of the U.S.
recovery hit stocks on Wednesday, as his comment that the economy
faced "unusually uncertain" prospects rattled investors.
U.S. financial reform bill also targets 'conflict minerals' (Washington Post) The bill
doth try to do too much, methinks. After all, look at Sub-Saharan Africa
generally … ‘mission impossible’ … and, with huge crime rates in the ‘
states, I’d say ‘look homeward, hell’s angels’. Then there’s the law of
parsimony sometimes referred to as ‘Ockham’s razor’ which as a logical
approach generally says ‘keep it simple’, only what’s necessary. Then, as
well, there’s the defacto bankruptcy thing for america which will preclude
meeting domestic promises, necessaries, and expectations. That’s reality
along with the fact that: ‘This is a global depression. This is a secular bear
market in a global depression. The past up move was a manipulated bull
(s***) cycle in a secular bear market. This has been a typically manipulated
bubble as has preceded the prior crashes with great regularity that the wall
street frauds and insiders commission and sell into. This is a typical wall
street churn and earn pass the hot potato scam / fraud as in prior crashes.’
Being a ‘meat and potatoes’ kind of guy, I also feel that all will be served if
the frauds on wall street et als are criminally prosecuted, jailed, fined, and
Job growth slows in Washington region (Washington Post) Wow! Sounds like a
plan … a great plan, even … so long as the slowing’s on capital hill / D.C. .
And, that’s if you believe their fake numbers. I’ don’t! Real Jobs, Fake Jobs In
many ways, the unemployment numbers are much worse than they appear.
One factor has been the timing of the US census.
Home building down 5 percent in June (Washington Post) Lunatic frauds on wall
street say, ‘well, it could have been a 20% decline and they’ll take it (not
really)’
A new front in racism battle (Washington Post) Truth be told, I’ve found that all
peoples are prejudiced / biased. Probably an adaptive evolutionary relic that
defies intellectual scrutiny, I’ve also found that those peoples who claim to
be victimized the most are themselves the worst offenders despite their
flaming rhetoric (there are numerous other and even better examples but the
following are news current):
a) UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE... CIVIL RIGHTS

PANEL TO PURSUE FED PROBE IN BLACK PANTHER CASE... ex-Justice
official quit over the handling of a voter intimidation case against the New
Black Panther Party accused his former employer of instructing attorneys in
the civil rights division to ignore cases that involve black defendants and
white victims
b) Latino KKK: You are too white to be American! ALIPAC | Tan Klan woman can
c) DRUDGE: Arab guilty of rape after consensual sex with Jew... ‘An Israeli man
of Arab origin has been convicted of rape after having consensual sex with a
woman who had believed him to be a fellow Jew.
DRUDGEREPORT: Arab guilty of rape after consensual sex with Jew... ‘An Israeli
man of Arab origin has been convicted of rape after having consensual sex with a
woman who had believed him to be a fellow Jew. Sabbar Kashur, 30, was
sentenced to 18 months in prison on Monday after the court ruled that he was
guilty of rape by deception. According to the complaint filed by the woman with
the Jerusalem district court, the two met in downtown Jerusalem in September
2008 where Kashur, an Arab from East Jerusalem, introduced himself as a Jewish
bachelor seeking a serious relationship. The two then had consensual sex in a
nearby building before Kashur left. When she later found out that he was not
Jewish but an Arab, she filed a criminal complaint for rape and indecent assault
…’
The yardarm is the remedy Dozens of our friends and comrades, of wonderful
compassionate activists are dead and wounded in the pirate attack in the high
seas on humanitarian aid boats. This is a dreadful crime that will forever be
remembered and should be punished. The Israeli pirates attacked the
humanitarian aid Freedom Flotilla in the international waters over 150 km out of
their territorial waters. The boats carried no arms; the participants strictly
adhered to Ghandian mode by asking the Greek and Cyprus authorities to search
the boats to avoid later claims that they were armed.
A Plague Upon The World: The USA is a “Failed State” Dr. Paul Craig Roberts |
The American people are lost in la-la land. They have no idea that their civil
liberties have been forfeited. US citizen killed on flotilla reportedly shot four
times in head Raw Story | A forensic report said Furkan Dogan was shot at close
range, with four bullets in his head and one in his chest, according to the
Anatolian news agency. The explanation foisted off on the americans by war
criminal israelis is probably something on the order of ‘they just wanted to make
sure they missed him’. Roberts: ‘AIPAC purchases US elections’ Russia Today
| Paul Craig Roberts says that there will be nothing that is going to be done by the
United States to change the relationship with Israel.
‘US funding terrorist group against Iran’ Press TV | A member of a terrorist
organization operating in Iran says that a US State department radio station originally
put him in touch with the group.


WORLD!
OOOOH! ISRAEL NOW IN FAVOR OF NUKES IN THE MIDDLE EAST IN SUDDEN

SHIFT IN POLICY TO FAVOR IRAN IN A VERY BIG WAY! ISRAEL SEES THE
LIGHT AND SIDES WITH IRAN ON NUCLEAR ISSUE; ESSENTIALLY SAYS TO THE

beyond control...
etc., to spend it on.
jailed, fined, and disgorgement imposed. (Cases against Wall Street lag
despite Holder’s vows to target financial fraud Obama broke promises ):

Trends ]
‘The Obama Deception’ Censored ‘In light of this development, I provide an

archived site version which appears to be complete

Web Site Archived FLV Version of Esoteric Agenda

http://albertpeia.com/esotericagenda.flv

attorney.
Posted by: mnjam
-----------------------

----------------------------

the CIA has has in effect carried out a “coup” against the US government,
and the intelligence agency needs to be “taken out.” I also personally
believe there has been a defacto coup d’etat which has manifested in
various substantial, blatant, brazened frauds, ie., wall street, missing 360
tons of $100 bills in Iraq, war profiteering, etc., without any fear of
prosecution, and of course concomitant decline for u.s. as the treasury is
looted. But I also believe its scope is beyond just the CIA with many
complicit within the corrupted 3 branches of u.s. government (fed judges, us
attorneys, illegal system, etc.) plus the military and private big money, ie.,
Goldman Sachs / wall street men, etc., among other organized crime.
america is defacto bankrupt in every way!

concentration camp.
Billo Says:
June 11th, 2010 at 6:15 am
Glen Reply:
June 11th, 2010 at 6:47 am
Lunacy it would be.
threats.
only the insane.

Russia accuses U.S. of kidnapping pilot (Washington Post) The lesson to be

learned here is don’t mess with american drug trade … they’ll **** you up!
That’s their drug money he’s takin’… riiiiight! … World Digest: China Oil
Spill; U.S. aid boat wants to sail to Gaza as 'The Audacity of Hope'
Rendition: Where the War on Terror Meets the War on Drugs Henningsen |
It’s time to ditch the policies we have come to tolerate for decades before
they consume what is left of our moral core. I’ve experienced the corrupt
inter-relationship of the government (all 3 corrupt branches) and the illegal
drug trade / obstruction of justice / bribery first hand, particularly the
courts / u.s. attorneys offices (ie., alito – now u.s. supreme court justice –
quid pro quo for his complicity / cover-up), feds; see immediately after
article excerpt for links / summary.


].
Corrupt u.s. courts / judges: Their lifetime plush appointments should be abolished,
which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time
to abolish these drags on society and eliminate their lifetime stipends and corrupt costly
bureaucracies.
have that and more:

“battlespace.”

(IMAGINATION).

fraud!

be mad.

surprised ].

Previously I wrote:

Regards,
Al Peia


perjury.pdf

another!
supplanted with alternatives as I’ve previously set forth in these comments.
· Response to App. Div. OSC

· STATE OF CALIFORNIA ethics complaint
· Response to Sup.Ct. OSC
· designation of record on appeal
· The so-called "order" appealed from.

· Typical corrupt banana republic america/california court
ofperjury.pdf
perjury.pdf


U.N. official calls Ban's leadership 'deplorable' (Washington Post) As long as
she’s looking in the mirror as she speaks … we’ll buy it! After all, they’ve all
but ignored illegal israeli nukes, israeli violations of international law / u.n.
resolutions, etc., even as they bully Iran. Collectively, the u.s. has indeed
become a joke.
Mideast DIGEST (Washington Post, July 19, 2010) netanayahu admits on video
he deceived US to destroy Oslo accord The contents of a secretly recorded video
threaten to gravely embarrass not only Benjamin netanayahu, the Israeli prime
minister but also the US administration of Barack Obama.
A lost fight to keep selling Chryslers (Washington Post) I realize it’s easy to say
after the fact, with hindsight, that I was always at a loss to understand this
very issue and such lack of understanding of the dealer / manufacturer inter-
relationships left me speechless; however, the same always seemed
counter-intuitive. Truth be told, however, I ‘m a big fan of Cal Worthington
here in California based solely (and uniquely for me) on his television
commercials in which the big cats figure prominently in actual footage of
him with them, along with him riding bulls, killer whales, etc., and having
very competitive advertised prices (He’s primarily Ford but sells them all).
The week ahead in business (Washington Post) Big week indeed for ‘no-
recession-helicopter-ben’ bernanke, the captain of that unsinkable american
economic Titanic who like the senile incompetent predecessor alan
green_spun quite a few contra-indicated yarns himself!
Market Going Down With the Ship? Montgomery: ‘This morning the Baltic
Dry Index, a measure of freight rates for international shipping, was at 1700.
It hasn't been at this level since April 2009, only four months after its Credit
Crisis low and only one month after the stock market was at its bottom.
Bloomberg News noted a week ago that the index had dropped continuously
for the longest period in nine years. Yes, the current drop in the preceding
seven weeks (from a high of 4209 in late May) has been bigger than anything
seen during the Credit Crisis. The last drop of this magnitude was in August
2001 in the middle of that year's recession. Lack of shipping activity from
China, the engine for global economic activity, was cited as the main cause
for the falling index. Charter rates for all types of ships tracked in the index
are falling. Prices for dry bulk shipping, which doesn't include energy
commodities, tend to be very sensitive to economic activity. A sharp drop in
rates indicates a significant drop in global trade. Based on historical charts
it looks like the Baltic Index can lead, be coincident or lag movements in
economic data and the stock market. The index seems to be most closely
correlated with prices of industrial commodities and the industrial sector of
the global economy. While this is not the largest component of the U.S.
economy (the service sector is four times larger), it is the key sector in
developing economies. It was manufacturing though that had the biggest
rebound in the U.S. since last year. The service sector has remained
lackluster. The stock market will likely be following the Baltic Index down,
although perhaps not with such a precipitous decline. The Index has
dropped almost 60% since late May. With the exception of the small cap
Russell 2000, none of the major stock indices have had even a 20% drop - at
least not yet. Disclosure: No positions.’
The Obama Deception Number 1 on U.S. Google Trends

‘The Obama Deception’ Censored A viral You Tube upload of one of Alex Jones’
most popular feature films ‘The Obama Deception’ has been censored
following a spur of the moment campaign to elevate the movie’s title to the
top of the major internet search engines.

be complete (but will be compared with earlier version and replaced with
same if incomplete)
Censorship Alert: Obama Deception Illegally Removed from You Tube
Drudgereport: IRELAND DOWNGRADED
Road Warrior-level collapse imminent: Alex Jones says we must take corrective
action now Move towards global currency as U.S. loses status, faces
depression and sees dangerous cuts to services as economic instability
sets in.
Week's gains erased; stocks drop as pessimism grips investors (Washington

Post) Reality, Really, Realistically does bite!
‘This is a global depression. This is a secular bear market in a global depression.

The past up move was a manipulated bull (s***) cycle in a secular bear
market. This has been a typically manipulated bubble as has preceded the
prior crashes with great regularity that the wall street frauds and insiders
the hot potato scam / fraud as in prior crashes.’
Regulators shut banks in Fla,(3) Mich,(1) SC(1) Total 2010 (96) (AP) Financial
stocks post worse loss since late May Equities Tumble, Pressured by
Earnings, Consumer Sentiment Stock Indexes Slip Below Support
Levels
Still great opportunity to sell / take profits since much worse, also called reality
beyond the b*** s***, to come.
Bank stress tests to shed light on Europe's economic health: Process examines
whether banks can take another punch to gut (Washington Post) The ‘bad
paper’ is still out there in the many trillions and in criminally complicit
fashion now marked to anything; and, they got their share of the same and
followed the American paridigm concerning same, to their substantial
detriment.
CNBC Host Accuses Guest Of Just Trying To Scare The Crap Out Of Everyone
CNBC’s Simon Hobbs fought it out with Michael Pento today about the
reality of the current economic situation in the U.S.
Real Jobs, Fake Jobs In many ways, the unemployment numbers are much
worse than they appear. One factor has been the timing of the US census.
Charles Nenner: “Long-Term Investors Should Wait Until Dow Hits 5,000″
Charles Nenner, who prior to founding the Charles Nenner Research
Institute served as a technical analyst for Goldman for about 10 years, has
been looking at charts and not seeing much to write home about.
Martin Feldstein: Bilderberg’s promoter of equity on adjustable-rate mortgages

and the Subprime Mortgage Crisis Make it Eight, eh? | In late 2007, as the
housing crisis was hitting a peak, would Martin Feldstein be gearing up to
suggest further reductions in interest rates to promote consumption?
Fed sends the dollar tumbling Ambrose Evans-Pritchard | The Fed confessed that
the US economy may not recover for five or six years.
A slap on the wrist for Goldman Sachs Aljazeera.net | The “great vampire squid
wrapped around the face of humanity” agreed to pay $550 million to settle
fraud charges.
22 Statistics That Prove The Middle Class Is Being Systematically Wiped Out Of
Existence In America The 22 statistics that you are about to read prove beyond a
shadow of a doubt that the middle class is being systematically wiped out of
existence in America.
Congress Passes Bankster Consolidation Bill Kurt Nimmo | Financial reform is a

three-card Monte scam, a confidence game, a sleight of hand.
After Goldman, SEC eyes exotic financial products Video (Washington Post)
SEC’s Khuzami Says ‘Goldman’s Suit Should Send Message’:
http://www.washingtonpost.com/wp-
dyn/content/video/2010/07/16/VI2010071602828.html
I disagree! Indeed, there have been and are a plethora of laws and ad hoc
prosecutions; but, particularly for the ‘risk seeker’ criminally insane
mentality on wall street, the same is far from a deterrent as seen from
historical perspective / fact and might even perversely provide for them an
incentive. The amount is relatively meager, but so long as this settlement is
as supposedly indicated to former SEC head by Khuzami narrowly drawn
and in no ways protective of goldman with regard to the yet unresolved
massive frauds in the many trillions, the SEC should be given the benefit of
the doubt. However, ‘turning its attention to exotic financial products that
MIGHT be used to harm investors’ is troubling to say the least. Might? Who
are they kidding. The ‘bad paper’ is still out there in the many trillions and in
criminally complicit fashion now marked to anything. I further believe these
products of fraud and consequent damage are being surreptitiously being,
with corrupt fed help, supplanted with real, albeit fiat, currency ultimately to
citizens / taxpayers / nations detriment. As things currently stand,
particularly from the numbers, fraud by wall street does pay; and pays well!
Khuzami, a 29-year-old former employee in Goldman Sachs Group Inc.'s
business intelligence unit, had better produce or appropriately find himself
prosecuted for conflict, collusion, etc.. After all, he’s hardly one to be
considered unbiased. The frauds on wall street et als must be criminally
prosecuted, jailed, fined, and disgorgement imposed. I truly believe that
absent such prosecution, there will be revolution in this country. In other
words, their ‘jig is up’ and they must go down for what they did / do.
Obama-Dodd-Frank FinReg Monstrosity Delays Derivatives Curbs until 2022!
Wall Street Is Laundering Drug Money And Getting Away With It
They still know how to count. When you defraud for many billions, paying $550
million is chump change. Goldman to pay $550M to settle civil fraud charges (AP)
Late stock rally ahead of Goldman settlement news And the beat goes on!
Goldman Sachs beats the SEC– ‘Can Goldman Sachs Group Inc. wheel and deal
or what? The bank and brokerage's settlement with the Securities and Exchange
Commission on Thursday over the ill-fated Abacus deal may be its best trade
ever. At $550 million, it's not terribly expensive. (GS 152.19, +6.97, +4.80%) hasn't
agreed to restrict its practices in any meaningful way. And poof! The firm can go
back to work with its biggest liability paid. Investors are ecstatic, Goldman shares
rocketed 5.5% in after-hours trading. No wonder Goldman called it "the right
outcome for our firm shareholders and clients." See full story on the SEC
settlement. For the regulators, the settlement is more than just anticlimactic.
Having bet all of its chips on reversing embarrassing episodes such as the Bernie
Madoff fiasco in an aggressive case against Wall Street, the SEC whiffed. Sure,
the settlement is the biggest in the agency's history. Yes, the SEC was able to
squeeze Goldman on the settlement language and admit it was a "mistake" not to
have disclosed Paulson & Co.'s role in picking the ill-fated securities. But come
on. Goldman's net income last year was $12.1 billion. It could be even higher this
year, given the robust first quarter Goldman already has had. The settlement
amounts to less than 5% of profits. Maybe Goldman Sachs will even be able to
write it off …’
Zahedan.
Concern over smashing into the 'wall of debt' (Washington Post) Oh, they’ve hit
the wall alright; and, it’s not just debt.
I believe the printing presses have been working overtime to pump out ever
more worthless fiat currency and with the many trillions of worthless
fraudulent paper still out there and marked to anything. I further believe the
same is being surreptitiously used to supplant the fraudulent paper, the
consequences of which will be devastating, of course, as is invariably so in
depressions in any event. This scenario would also mean huge fraud
accomplis. This market is paper on paper moving around and generating
commissions at lightning computerized speed but adding no real value in
real economic terms; again, the analogy of termites eating away at the
(nation’s) foundation is apposite. As such, that money has to come from
some real place and hence, the ever more frequent and larger crashes we
are seeing. Don’t forget that the worthless paper from previous such
fraudulent schemes now marked to anything is still out there in a magnitude
some have placed in the hundreds of trillions.
Biggest wall will be reality:

into.’

and 2012
Economists worry women, minority business owners' gains will be lost

(Washington Post) Little bit late for ‘economists worry’; talk about senile
greenspan / no-recession bernanke economics / prognosticating. Does
anybody recall the merciless drubbing (and pressure) that Ross Perot got
for predicting the ill effects of NAFTA and standing against the tide. In
america today, the best men never win; that’s reality, and also the sign of
decline.
Exports are up, but where are the jobs? (Washington Post) Gone with the wind?
Sorry, I must have been thinking of million dollar movies. Seriously though, I dare
say everyone knows they were gone with that ‘bi-partisan executive /
congressional, think-tank, cia / nsa ill wind’ that others might refer to as
flatulence / passing gas, also called NAFTA, and also proudly hailed by the
foregoing as ‘strategy’. They’re gone, and never to return. Moreover, the flipside
of the exports, viz., imports, doesn’t bode well despite the fraudulent wall street
b*** s*** and their chorus of cheerleaders in washington. Some might say self-
delusion but I would say fraud covers all.
Companies pile up cash but still won't add jobs (Washington Post) Unlike the
public sector (which now exceeds private sector in job gains and average
compensation), the private sector attempts to mesh hiring with economic supply /
demand factors to maximize (shareholder) profits / wealth. Whatever faults
american companies have, with relatively few exceptions, this still remains a very
basic fundamental and building surplus (generating profits) is a necessary
precept to ensure survival and the capacity to be a good ‘citizen’ so to speak.
Then there’s reality:
Retail sales down for 2nd consecutive month (Washington Post) Another ‘Come
on’ day on fraudulent wall street! This time it’s the unexpected downward
revision to previous market-frothing retail sales report and poor retail sales and
plunge in mortgage applications and then there’s the fed minutes pointing to
extended bad economy. See Dave Fry’s (Daily) summary below referencing in
euphemistic fashion, yet another ongoing manipulation also known as fraud.
(Absent prosecutions, they’ll continue to do what comes natural to frauds on wall
street). Great opportunity to sell / take profits since much worse, also called
reality beyond the b*** s***, to come. Then there’s also the bad but typical news;
viz., retail sales, mortgage apps, economic outlook down, and yesterday deficits,
trade and budget, up.
NATION NEWS DIGEST: J.P. Morgan Chase posts $4.8 billion profit (Washington
Post) Yet another ‘Come on’ day on fraudulent wall street! This time it’s the
unexpected jump in continuing claims for unemployment, yesterday the
downward revision to previous market-frothing retail sales report and poor retail
sales and plunge in mortgage applications and then there’s the fed minutes
pointing to extended bad economy. Then there’s also now the ‘goldfinger factor’
as in goldman’s middle finger. When you defraud for many billions, paying $550
million is chump change. Goldman shares rocketed 5.5% in after-hours trading.
No wonder Goldman called it "the right outcome for our firm shareholders and
clients." (Absent prosecutions, they’ll continue to do what comes natural to
frauds on wall street). Great opportunity to sell / take profits since much worse,
also called reality beyond the b*** s***, to come. Then there’s also the bad but
typical news; viz., previous retail sales, mortgage apps, economic outlook down,
and continuing claims for unemployment, deficits, trade / budget, up. (Just in: 7-
16-10 Poll – only 43% of Americans approve of the Afganistan War, down from
52% in January, 2010)
Pearlstein: Can regulation beget innovation? (Washington Post) I believe the

more seminal question to be, whether american companies, consistent with
overall american decline and corruption in so pervasive a fashion, are capable of
or inclined toward real innovation where enhancements to productivity, as well as
greater profits, is the consequence as desired. Certainly there has been
‘innovation’ by the wall street frauds in the types of (ultimately worthless /
fraudulent) paper and high frequency trade programs enhancing their bottom-
lines but little else; and, those cutting edge ‘weapons of mass destruction’
produced or financed (israel) by america are hardly productive in the economic
sense but innovative and profitable in the short run, and unwise and nation-
bankrupting in the longer run which we’re in right now!
Goldman agrees to pay $550M (Washington Post) My own skepticism based on

the disparate numbers (the size of the frauds compared to the relatively
small fine) and as set forth in the initial reactions / headlines that
immediately follow has been allayed somewhat by an interview on NBR with
former SEC head Ruder who explained the very narrow scope of the
settlement which in no way shelters goldman from the huge frauds they
have perpetrated. So long as this is true in fact as well as law and in
application, the SEC deserves praise as has been so under the auspices of
‘Mother Mary’ who appears to have the gonads lacking in prior SEC heads.
and disgorgement imposed.
Ex-Justice official: CIA may have exceeded limits (Washington Post) Wee
doggies! This sounds like the stuff that SNL Weekend Update ‘Really’ skits are
made of; also fitting into that list of queries as, ‘Is the Pope Catholic?’, ‘Do bears
**** in the woods?’, etc.. Come on! Wake up! This is the kind of complicit cover-
up / corruption found betwixt and between all three branches of the u.s.
government leading ineluctably to america’s current decline and to which I’ve
attested under penalty of perjury in the context of the RICO litigation [
ury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ].


For now, spew of oil into Gulf of Mexico is halted (Washington Post) Well, thank
God for small favors! I suggest they change that name, ‘integrity test’; that’s
doomed to end in failure. Yes, the brits are back. They’ve clogged the well, with
help from the ‘usual suspects’, the americans. What precision! What teamwork!
Victory at last … riiiiight!
What Does The Financial Reform Bill Do Other Than Being Completely And
Utterly Worthless? Is it possible to write a 2,300 page piece of legislation
that accomplishes next to nothing and is pretty much completely and utterly
worthless? The answer is yes.
U.S. Regulatory Bill Nears Passage With Republican Support The U.S. Senate
plans to pass the financial-regulation bill on July 15 as Democrats secured
the 60 votes needed to enact the biggest rewrite of Wall Street rules since
the Great Depression.
Bloomberg Poll Finds Americans No Longer Drinking Kool Aid, 71% See
Economy “Mired In Recession”
Fed Sees Slower Growth Wall Street Journal | Updated forecast to be released
Wednesday afternoon with the minutes of the Fed’s late-June policy meeting
is likely to show that officials have trimmed their second-half forecasts.
Chinese rating agency strips Western nations of AAA status London Telegraph
UK public sector debt ‘around £2 trillion’ London Telegraph | The UK’s public
sector debt could be £1.13 trillion higher than headline figures suggest,
according to research.
Moody’s Cuts Portugal Rating by Two Notches

24 multinationals move HQ to Shanghai CNTN | Vale, Walt Disney and Kraft Foods
have decided to move their regional headquarters to Shanghai.
House Democrats hit boiling point over perceived lack of White House support
Public confidence in Obama reaches new low (Washington Post). Six in 10

Americans lack faith in Obama and hold lower esteem for members of
Congress, according to the latest Washington Post-ABC News poll. Such
stats as this tend to typify scenarios as this where you break every
significant campaign promise that got you elected, from endless war (ie.,
Afghanistan, etc.) to not prosecuting the frauds on wall street, and the
growing realization of ‘typical’: Public confidence in Obama reaches new low
(Washington Post) Six in 10 Americans lack faith in Obama and hold lower
esteem for members of Congress, according to the latest Washington Post-
ABC News poll. Such stats as this tend to typify scenarios as this where you
break every significant campaign promise that got you elected, from
endless war (ie., Afghanistan, etc.) to not prosecuting the frauds on wall
street, and the growing realization of ‘typical’:
But still it’s ‘hands off fraudulent wall street’ to theirs, the nation’s, and the
world’s detriment. Firms subpoenaed in attempt to regain Fannie, Freddie
losses (Washington Post). But there’s a reason:
PANTHER CASE... ‘In emotional and personal testimony, an ex-Justice
official who quit over the handling of a voter intimidation case against the
New Black Panther Party accused his former employer of instructing
attorneys in the civil rights division to ignore cases that involve black
defendants and white victims ...’ US v. AZ... Cases against Wall Street lag
despite Holder’s vows to target financial fraud Washington Post | Obama has
promised to hold Wall Street accountable for the meltdown. ):

=PL&index=0&playnext=1 – well worth a look.
While boner and barton are indeed jokes / vegetables that bespeak the single-
digit approval rate for congress, obama’s failure to deliver on promises with
as well, endless war spending despite defacto bankruptcy of the nation and
a watered down nothing financial regulation bill for talking points but little
substance, make him as big a joker. This well researched / produced video
tells the real story : http://www.youtube.com/watch?
=PL&index=0&playnext=1 ‘THE OBAMA DECEPTION’ – well worth the view.

Pentagon warns Congress: Accounts running dry...(Drudgereport) Isn’t this

headline eerily reminiscent of that seminal B film by Roger Corman for Jack
Nicholson, ‘Little Shop of Horrors’ (and remake) wherein a murderous vegetable /
plant clamors incessantly and insatiably, ‘feed me’. Eight U.S. service members
killed in series of attacks in southern Afghanistan (Washington Post, July 15,
2010) . This ridiculous war apparently for the sake of the american sponsored
reinvigorated heroin trade was a bad idea ab initio even if america wasn’t defacto
bankrupt.
Concern over smashing into the 'wall of debt' (Washington Post) Oh, they’ve hit
the wall alright; and, it’s not just debt.
I believe the printing presses have been working overtime to pump out ever
more worthless fiat currency and with the many trillions of worthless
fraudulent paper still out there and marked to anything. I further believe the
same is being surreptitiously used to supplant the fraudulent paper, the
consequences of which will be devastating, of course, as is invariably so in
depressions in any event. This scenario would also mean huge fraud
accomplis. This market is paper on paper moving around and generating
commissions at lightning computerized speed but adding no real value in
real economic terms; again, the analogy of termites eating away at the
(nation’s) foundation is apposite. As such, that money has to come from
some real place and hence, the ever more frequent and larger crashes we
are seeing. Don’t forget that the worthless paper from previous such
fraudulent schemes now marked to anything is still out there in a magnitude
some have placed in the hundreds of trillions.
Biggest wall will be reality:

into.’
and 2012
Economists worry women, minority business owners' gains will be lost

(Washington Post) Little bit late for ‘economists worry’; talk about senile
greenspan / no-recession bernanke economics / prognosticating. Does
anybody recall the merciless drubbing (and pressure) that Ross Perot got
for predicting the ill effects of NAFTA and standing against the tide. In
america today, the best men never win; that’s reality, and also the sign of
decline.
Exports are up, but where are the jobs? (Washington Post) Gone with the wind?
Sorry, I must have been thinking of million dollar movies. Seriously though, I dare
say everyone knows they were gone with that ‘bi-partisan executive /
congressional, think-tank, cia / nsa ill wind’ that others might refer to as
flatulence / passing gas, also called NAFTA, and also proudly hailed by the
foregoing as ‘strategy’. They’re gone, and never to return. Moreover, the flipside
of the exports, viz., imports, doesn’t bode well despite the fraudulent wall street
b*** s*** and their chorus of cheerleaders in washington. Some might say self-
delusion but I would say fraud covers all.
Companies pile up cash but still won't add jobs (Washington Post) Unlike the
public sector (which now exceeds private sector in job gains and average
compensation), the private sector attempts to mesh hiring with economic supply /
demand factors to maximize (shareholder) profits / wealth. Whatever faults
american companies have, with relatively few exceptions, this still remains a very
basic fundamental and building surplus (generating profits) is a necessary
precept to ensure survival and the capacity to be a good ‘citizen’ so to speak.
Then there’s reality:
Retail sales down for 2nd consecutive month (Washington Post) Another ‘Come
on’ day on fraudulent wall street! This time it’s the unexpected downward
revision to previous market-frothing retail sales report and poor retail sales and
plunge in mortgage applications and then there’s the fed minutes pointing to
extended bad economy. See Dave Fry’s (Daily) summary below referencing in
euphemistic fashion, yet another ongoing manipulation also known as fraud.
(Absent prosecutions, they’ll continue to do what comes natural to frauds on wall
street). Great opportunity to sell / take profits since much worse, also called
reality beyond the b*** s***, to come. Then there’s also the bad but typical news;
viz., retail sales, mortgage apps, economic outlook down, and yesterday deficits,
trade and budget, up.
Mideast Digest: Wow! Belfast, Northern Ireland; and in the Mideast Digest
Section, of all places. It’s been a long time. While I have had some
difficulties with Irish mob in the context of litigation but only tangential to
my primary RICO action vis-à-vis the Italian mob (and similarly tangentially
the jewish mob and then primarily what I learned to be ‘governmental mob’,
federal, state, local, derivative thereby and the sine quo non of corruption /
bribery / synergy that spells decline for any nation), it is difficult to not be
empathetic to the plight of an otherwise beautiful nation tainted only by the
orange stain in that northern quarter. After all, what hasn’t england not
mucked up from balfour to the mideast to now even their own nation having
hitched a ride on the american / israeli crazy train. As a matter of disclosure,
I must admit to an affinity for the Irish and somewhat fairly recently had been
asked what I thought of Philadelphia to which without hesitation I
immediately replied that Grace Kelly (truly magnificent by any standard) was
born there. I could think of nothing else that could parallel such a
distinction.
WHICH WAY IS THE MARKET GOING NEXT? Gomes: ‘Having been a technical
analyst for the first 10 years of my investing career and a fundamental analyst for
the past 15 years, I'm a believer that technical patterns form as fundamentals
unfold. As such, if you know something about both, you can confirm both against
each other. At this point in time, I see a market that is technically reaching up
toward its 200 day moving average (2,250 for the NASDAQ). I also see a 50 day
moving average that is threatening to drop below that 200 day moving average.
Technically, that is usually a very bad sign for the market. …
1) Economic indicators are dropping fast. For all intents and purposes, the
unemployment rate has not budged. Meanwhile, store shelves are stocked again,
PCs have been upgraded, etc. In other words, the pent-up demand that drove the
current rebound has almost run its course. What little remains no longer has the
power to drive the economy as it has over the past 18-months.
2) "Follow the money". This is one of the most powerfully simple rules on Wall
Street. When money is flowing into the economy (i.e. via lower interest rates or
stimulus $$$), it's usually good for stocks..and vice versa. At present, interest
rates can't go much lower and the numerous stimulus programs are losing
effectiveness. This means that the money is no longer flowing in. Worse yet, the
money that was spent is not generally viewed as having been money well spent.
This does not bode well for a new stimulus package to come anytime soon. In
other words, money is not flowing in AND doesn't appear poised to flow in
anytime soon. In fact, state and municipal budgets are being cut (money flowing
OUT), while they raise local sales and income taxes (more money flowing out). if
federal taxes go up in 2011, as planned, even more money will be flowing out. If
you follow that, you should be flowing out of the stock market. In short, barring a
new stimulus package of other major money-flowing event, I believe the economy
slips back toward recession. Whether or not we double-dip, we will almost
certainty slip in that direction.
3) If you follow the money in Europe, you will run for the hills. Europe has
decided to spin 180-degrees and shift from stimulus to austerity (if you don't
know the definition, look it up -- you'll likely hear it again -- and not just from me).
Effectively the opposite of stimulus, austerity will pull money away from the
European economies...which tells us to pull money away from stocks. Worse yet,
the effect of the EU/IMF bailout is already wearing off. Greek yields are rising
again and Portuguese credit ratings have been reduced.
4) Global bubbles are bursting. Most notably, home sales in China and Canada
are starting to fall. Remember what happened when the U.S. housing market
cracked? That's right -- that's what started this mess in the first place.
5) Politically, this period in time has a tendency to be bad for stocks. There is
uncertainty around the mid-year elections...and the market hates uncertainty.
Historically, the political picture doesn't become clear until October, at which
point we might expect a rally. Until then, expect the democrats to do everything
they can to retain their jobs in November. That means, "stop pissing off the
public"...and the public seems pretty pissed about how the stimulus $$$ worked
out for them (or more accurately, how it DIDN'T work out for them). Thus, the
political pressure will lean against further stimulus until after the elections.
The Bottom Line: I believe that the market will start to reflect these concerns very
soon. These are real fundamental concerns, which you can see reflected in the
technicals. As the market reaches the 50DMA and the 200DMA, it will be inclined
to retreat (barring some new, hugely positive news). Meanwhile, the 50DMA is
90%+ likely to cross below the 200DMA, giving the market more reason to
retrench. At some point, if the economy sinks far enough and if the market drops
far enough, political pressure for more stimulus will mount. At that point, money
will flow back into the economy. But that time is not now. Now, money is flowing
away like the tide...and so should your invested capital. I'm not always right, but I
do my best, based on the information before me. Based on what I see right now,
the most logical conclusion is to expect a long, ugly summer for stocks. If I see
information that changes that view, I'll be sure to post an update to this post.
Disclosure: I have short positions against the market
NAACP Resolution Designed to Wreck Tea Party Movement by Playing Race Card
Kurt Nimmo | The Tea Party movement is more popular than either the
Democratic or Republican parties, so it must be destroyed.
Majority of Americans lack faith in Obama: poll Nearly 60 percent of American
voters say they lack faith in President Barack Obama, according to a public
opinion poll published on Tuesday.
Majority of Americans lack faith in Obama: poll Reuters | Nearly 60 percent of

American voters say they lack faith in President Barack Obama, according to
a public opinion poll published on Tuesday. Top anti-war Democrat:
Afghanistan war could ‘destroy’ Obama’s presidency Raw Story | An
outspoken anti-war Democrat said ongoing US military efforts in
Afghanistan could deeply imperil the presidency of Barack Obama and the
fortunes of the Democratic Party. Obama’s debt commission warns of
fiscal ‘cancer’ Washington Post | The commission leaders said that, at
present, federal revenue is fully consumed by three programs: Social
Security, Medicare and Medicaid.
If not for the likes of ie., Dell Computer, most (ie., those die hard Mac, Iphone,
Ipad, etc., aficionados among others) would say microsoft’s already in the
clouds, so to speak. Microsoft takes aim at the cloud (Washington Post)
No help in sight for jobless (Washington Post) Well, from their perspective, they
really don’t feel your pain, and, it gives the frauds on wall street another b*** s***,
market frothing, false talking point in the form of ‘fewer continuing claims for
unemployment’. Then there’s that ‘ depression thing’.
The big crash — America plunges into Depression Alexander Cockburn

into. This is a typical wall street churn and earn, pass the hot potato scam / fraud
as in prior crashes.’
Making millions from mowing lawns [Sounds like a plan … riiiiight!] (Washington
Post) Value Added | Entrepreneur's reinvestment and diversification …
By Thomas Heath For the less entrepreneurial at heart there’s always … flippin’
burgers … Washington, D.C.: the nation's (burger) capital? (Washington Post) |
‘The Washington area has emerged as fertile ground for ground chuck …’
Survey: A satisfied federal workforce (Washington Post) Indeed they should be
since they’re totally expendable and a waste of taxpayer money.
Return of the No-Volume Melt-Up
Momentum Book Update: Trend Indicators Still Pointing Negative

Employment Picture Is Getting Bleaker
The Debt Party Is Over ‘… In a Ponzi scheme, the end comes when the marginal
investor decides to do something else with his money. Then the house of cards
stars falling apart. …’
Mattis: 'It's fun to shoot people' Washington Post - Ed O'Keefe - Jul 9, 2010 By Ed
O'Keefe President Obama's pick to lead military operations in Afghanistan,
Iraq, Pakistan and the Middle East is an experienced ground combat
commander, but also earned a stern rebuke in 2005 for controversial
comments about combat operations. Gen. James Mattis is named head
of US Central Command Los Angeles Times Blunt General Appointed to
Lead Forces in Mideast New York Times
DRUDGEREPORT: BOMBSHELL: Media Mogul Mort Zuckerman Admits He Wrote

One Of Obama's Speeches...
Were White House Officials Ready to Expose Collaboration?
Zuckerman Now: Obama Barely Treading Water...
MICHELLE TELLS BLACKS TO 'INCREASE INTENSITY'
6 troops killed in Afghanistan...
DEM GOVS WARN: OBAMA SUIT VS. AZ IS 'TOXIC'
Debt panel has gloomy outlook...
Crisis Awaits World’s Banks as Trillions Come Due...
G20 looks to Beijing to drive global growth … They’re dreamin’! ...
They say ‘stocks oversold’. Preposterous! Stocks have been overbought based
on bad news or nothing at all, rallying on ‘not as bad as expected’. Even if that
were true (I don’t believe anything they say), who cares what the criminally insane
frauds on wall street say what they expect. It’s fundamentals, economic and
financial, that ultimately count; but, in the meantime, they’re like termites eating
away at the nation’s foundation with lightning fast computerized trade programs,
all of which excessively huge commission churn / earn revenues are a net
negative for the economy in real economic terms which is evidenced by
unprecedented economic decline in all productive sectors of the economy. This
is a great opportunity to SELL / TAKE PROFITS since this suckers rally to suck
suckers in and keep them sucked in is based on fraud and b*** s*** alone and:
into. This is a typical wall street churn and earn pass the hot potato scam / fraud
as in prior crashes.’
Technical Indicators Trigger Major Sell Signal ‘…In summary, the bearish picture
is confirmed by technical indicators, a fundamental outlook, sentiment gauges,
and valuations.Based on what the market considered fair market valuations at
prior historic market bottoms, one can conclude how far stocks have to drop to
reach the previously attained level of fair valuations …’
Simon Maierhofer: ‘On Friday July 9, 2010, 4:32 pm EDT It rarely ever happens,
but when it does, it's serious. It has only happened nine times in 10 years. We are
referring to crossovers between the 200-day and 50-day simple moving averages
(SMAs).Very few technical indicators receive as much attention and media
coverage as the 50 and 200-day SMAs. The 200-day MA is perceived to be the
dividing line between a stock that is technically healthy and one that is not. It's a
Big Deal It's a big deal when a stock or an index drops below the 200-day SMA.
It's an even bigger deal when the 50-day SMA of any given stock or index drops
below the 200-day SMA. Such a crossover reflects internal weakness - at least in
theory. We'll discuss in a moment how the actual numbers match up with
theoretic assumptions. On June 22, 2010, the S&P 500 (SNP: ^GSPC) and Dow
Jones (DJI: ^DJI) dropped below the 200-day SMA. One day later the Nasdaq
(Nasdaq: ÎXIC) followed. On July 2, 2010, the 50-day SMA for the S&P
(NYSEArca: SPY - News) dropped below the 200-day SMA. On July 6, the Dow
Jones (NYSEArca: DIA - News) followed. As of today, the Nasdaq (Nasdaq: QQQQ
- News) is barely hanging on. This sounds like a doomsday scenario. Does a rigid
analysis show that there is validity to 200-day and 50-day SMA crossover buy/sell
signals? Let's investigate.Crossovers - Lagging but Notable Many argue that the
SMA crossover is a delayed signal that emphasizes past weakness more than it
foreshadows future declines. To an extent, that is true. There are other warning
signals that point to a market turn long before the SMA does. For example, on
April 16, 2010, the ETF Profit Strategy Newsletter noted an extremely low put/call
ratio along with other bullish sentiment extremes. The newsletter stated that 'the
message conveyed by the composite bullishness is unmistakably bearish. Once
prices start to fall and investors get afraid of incurring losses, the only option is
to sell (due to the low put/call ratio). Selling, results in more selling. This negative
feedback loop usually results in rapidly falling prices.' Prices did fall rapidly. The
22 trading days following the April 26 high, erased eight months worth of gains. It
took a 17% drop for the SMA crossover to trigger a sell signal. When the ETF
Profit Strategy Newsletter issued a strong buy signal on March 2, 2009, it
emphasized that the developing rally would be a counter trend rally followed by a
steep decline and maintained this viewpoint even though prices kept rallying
relentlessly into the April highs. The SMA crossover now expresses the
possibility that even lower prices are ahead. 200 and 50-day SMA Crossovers -
How Accurate? How about the SMA crossover track record? Over the past 10
years, there have been nine S&P SMA crossovers with five sell and four buy
signals. We have yet to see the results of the most recent sell signal. However, of
the eight previous signals, six were correct. Average gains following each signal
were 14.91%. $10,000 invested according to the buy/sell recommendations given
right after the first sell signal was triggered on October 30, 2000 at S&P 1,399,
would be worth $24,769 today. More Than just Crossovers If it sounds too good
to be true, it often is. As is the case with so many technical indicators, crossovers
need to be viewed in context with other indicators. In other words, take a step
back and evaluate how crossovers fit into the larger picture. The larger picture
(going back to 2007) reveals that trading volume associated with market declines
has been generally high, while trading volume seen during rallies has been
generally low; a bearish sign. Does Wednesday's 3.13% Rally Invalidate the Sell
Signal? On Wednesday, the S&P rallied 32 points or 3.13%. The Dow rallied
2.82%, while the Nasdaq rallied 3.13%. Does this mean the bull market is back on
track?Since the April market top, we've seen about a handful of 2-3% bounces. All
associated gains were erased within a matter of days. Chances are this time will
be the same. In fact, some sort of bounce was to be expected. On July 5, the ETF
Profit Strategy Newsletter stated 'considering that the S&P is butting against the
100-week SMA, lower accelerations band, 38.2% Fibonacci retracement levels,
round number resistance at 1,000, and weekly s1 at 994, there is a good chance
we will see some sort of a bounce develop from the 990 - 1,015 area. Weekly r1 at
1,066 and pivot at 1,063 should serve as resistance.' This bounce is in its later
stages right now. What's Next? Let's revisit the larger picture. Out of the nine
leading industry sectors, seven have seen their 50-day SMA cross below the 200-
day SMA - financials (NYSEArca: XLF - News), technology (NYSEArca: XLK -
News), consumer staples (NYSEArca: XLP - News), materials (NYSEArca: XLB -
News), utilities (NYSEArca: XLU - News), energy (NYSEArca: XLE - News) and
healthcare (NYSEArca: XLV - News). The consumer discretionary (NYSEArca:
XLY - News) and industrial sector (NYSEArca: XLI - News) are the only holdouts.
All nine sectors, however, trade below their 200-day SMA. Fundamentals,
sentiment readings and valuations also point south. Some of the fundamentals
we have discussed in these pages are crafty accounting practices designed to
hide huge losses racked up by big financial institutions not yet realized along
with a continually bad unemployment picture. Sentiment surrounding the April
highs recorded extremes not seen since the 2000, 2007, and even 1987 market
top. There are multiple sentiment measures (such as the VIX, cash allocation,
put/call ratio, percentage of bullish/bearish advisors, mutual fund cash levels,
etc.). Each sentiment measure is one piece of the puzzle. The more pieces of the
puzzle you have, the clearer the picture becomes. Leading up to the April highs,
nearly all sentiment indicators peaked, painting a complete bearish picture. In
summary, the bearish picture is confirmed by technical indicators, a fundamental
outlook, sentiment gauges, and valuations. Based on what the market considered
fair market valuations at prior historic market bottoms, one can conclude how far
stocks have to drop to reach the previously attained level of fair valuations. The
ETF Profit Strategy Newsletter includes a detailed analysis of four valuation
metrics with a track record of accuracy, along with the implied target range for an
ultimate market bottom. This is provided in addition to its short, mid and long-
term forecast. When the market speaks, it behooves investors to listen. Fighting
the tape has often proven to be foolish, as the market will always have the final
word.’
A Market Forecast That Says ‘Take Cover’ New York Times | We have entered a
market decline of staggering proportions — perhaps the biggest of the last 300
years.
Commercial Real Estate Loans Extend and Pretend ‘…Courtesy of Thomson /

Reuters Commercial Real Estate Loans – Extend and Pretend Community banks
have commercial real estate loans where the borrower cannot make scheduled
interest and principle payments. More than 50% of all FDIC-insured institutions
have loan pipelines that are 80% to 100% funded. This is a measure of how banks
are stuck with noncurrent assets, but they are not classified that way. Instead,
community banks are giving borrowers more time to make their payments on the
theory that it’s better to collect zero on some loans rather than owning the real
estate that collateralizes those loans. This concept is dubbed “extend and
pretend” hoping that the borrower will eventual pay the loan back. Banks in this
practice are known as “Zombie Banks” as they can’t lend, can’t lure in new
investors, and wait for the FDIC to knock on their doors on Friday afternoon. This
strategy includes stretching out loan maturities and allowing below-market
interest rates to slow the number of defaults and preserving the capital of banks
that would be expended if property had to become “Other Real Estate Owned.”
As a result “Loans 30 to 89 Days in Arrears” and “Noncurrent” loans are not
growing as fast as they should be. The net result of these practices masks the
true toxicity of the Commercial Real Estate market. It’s not just the small banks
that are employing “extend and pretend” tactics. I read that the Bank of America
(BAC) has extended a large real estate loan in Buckhead, Georgia the high-class
area north of Atlanta. The loan finances the development of a high-end shopping
and residential project in 2007 and now three years later the cranes are silent and
the project is fenced in. The banking regulators are helping the banks by allowing
the lenders several ways to restructure loans. While doing so the banks are
allowed to keep these loans as “performing” even with collateral values below the
loan amounts. Extend and pretend is also known as kicking the can down the
road. It seems to me that we have wasted billions if not trillions in stimulus
money and bank bailouts when this money could have been used to actually fund
the completion of these projects. Such a plan would have cost tax payers much
less and would have kept Americans working on Main Street USA, as finishing
incompleted real estate projects are clearly “shovel ready” projects. According to
Foresight Analytics banks hold $176 billion of CRE loans that could be declared
toxic. This is the tip of the iceberg as the FDIC Quarterly Banking Profile shows
$1.09 trillion in nonfarm nonresidential real estate loans and $418 billion in
Construction & Development loans on the books of our nation’s banks. About
two-thirds of the CRE loans are maturing between now and 2014, and are
underwater. Commercial real estate property values are down 42% from the
October 2007 peak. At the end of the first quarter 9.1% are delinquent up from 7%
a year earlier. Bankers justify “extend and pretend” saying that it’s better than
calling the loan and dumping more property on a depressed market. We need a
stronger economy to entice new investors to resurrect projects and to find new
demand for competed offices, hotels, condos etc which are the finished products
of completed CRE projects. Without a strong economic recovery these loans will
eventually have to be written off down the road. The problem is that while these
loans are on hold banks can’t justify new loans, which would be the engine of
economic growth. And the beat goes on. Disclosure: No positions’
Light Volume Temptations: Dave's Daily ‘Volume still matters, doesn't it? It
seems not as the financial media ignores our light volume market in favor of
writing bullish headlines. With hedge funds mostly sidelined according to reports
posted here yesterday, the primary buyers must be trading desks on Wall Street
and a handful of algo traders. It's tempting to come off the sidelines and join the
fun but perhaps it's just the trap they're laying for you. A headline at Reuters read
this afternoon: "Weaker Economic Views Equals Stronger 3-Year Note Sale". So,
if equity markets are forward-looking one must wonder what these few buyers are
seeing beyond a short-term trade. Headline writers say its strong earnings growth
that will prop markets coupled with rosy outlooks. That would have to be the case
otherwise this is just a sucker's rally. As stated, volume was holiday-like light
(40% below average) making it really easy for the machines to take over trading,
and so they did ... ‘
Economists, Financial Experts: U.S. Is Trapped In 1932 Size Depression

Following Nobel Laureate Paul Krugman’s declaration last week that the
U.S. is in entering a third period of great depression, more and more
economists are following suit, comparing the scale of the crisis to that of the
early 1930s.
Ahmadinejad brands US world’s dictator ahead of summit
David Icke onTV: Humanity’s Last Chance Infowars.com | Alex talks with writer,
public speaker, and former well-known BBC television sports presenter
David Icke. As the United States Collapses, Media Worships LeBron
James Infowars gives the inside scoop on basketball MVP LeBron James’
pivotal trade decision. America Is In A Societal Meltdown Chuck Baldwin |
America is in the midst of a complete and total spiritual, societal, cultural,
moral, and political meltdown. Obama Selects General Who Likes Killing
Muslims to Centcom Kurt Nimmo | Gen. Mattis has the same habit of
speaking his mind as McCrystal.
The Lights Are Going Out For Free Speech On The Internet Type the
keywords “Internet censorship” into Google News and you will immediately
understand to what degree the world wide web is under assault from
attempts by governments globally to regulate and stifle free speech. From
Australia to Belarus, from Turkey to Vietnam, from Pakistan to Egypt, from
Afghanistan to Iran, huge chunks of the Internet are going dark as the
Chinese model of Internet regulation is adopted worldwide. [Has everybody
lost their minds? Referring to the china model as something to be emulated.
It’s true they are more productive than america, generally, but their business
model is almost prehistoric and the direct consequence of the great
american sell-out for money (the ‘pass through’ or direct) by those who’ve
pledged otherwise (walmart, congress, clinton, bush, wobama, etc.). Even
some of their simplest products are junk (but priced incredibly low to make
the relative value) and seem to have adopted that GM strategy of planned
obsolescence, breakdown, etc., to spur sales. Then there’s the communist
faux capitalism paradox, suppression, oppression, etc., which has even the
defacto bankrupt, pervasively corrupt, fallen america blindly following. Quite
simply, their ancient business model is slave labor. As for Iran, they are a
relatively small nation under collective siege.]
US taxpayers’ Afghan aid money buys rich Afghans’ Dubai villas You already
might have heard that it costs the United States $1 million for each solider
per year in Afghanistan, to cover the cost of the soldiers’ benefits, troop
transports and other materiel. Billions of dollars secreted out of Kabul
Spiegel Online | Billions of dollars are being secreted out of Kabul to help
well-connected Afghans buy luxury villas in Dubai and then there are the
american recipients who are a bit more careful with their stash.
The New Civil Wars Within the West Gregory R. Copley | Internecine civil wars are
underway almost everywhere within the West, and most virulently in the
United States of America. On Why America’s 234th Birthday May Not Have
Many More To Follow Zero Hedge | It is my firm belief that we have come to
the “end of the road” for the financial system.
Iran says planes denied fuel in Germany, UK, UAE Reuters | The claim could not
be independently confirmed and was met abroad by skepticism. [Europe
really fell fast. They make Christians look like the dumbest people in the
world, along with the likes of ie., UAE if true (and defacto bankrupt america).
After all, this ‘all for israel’ mantra is contraindicated inasmuch as the
hebrews deny the very foundation of the Christian religion and indeed were
behind his crucifixion].
DRUDGEREPORT: Evans-Pritchard: It's Really Starting to Feel Like 1932

[Depression] ...
Dow Repeats Great Depression Pattern...
Investors fear risk of regional defaults...
Obama: 'The great jobs killer'...
Turkey, a leader of nations, wants war criminal israel apology, israel rejects
demand ...
Inventory Cycle Has Run Its Course Harrison – ‘… This is the scenario I have
been predicting for months now.
• Double Dip Recession and the Obama 2011 Budget (February 2010): The
long and short is that – come Summer – the inventory cycle’s thrust will
have dissipated. And if companies are not hiring by this time and
consumer spending is not increasing more robustly, then the state
budgets, the strategic defaults and all of the rest of that becomes a serious
obstacle. In my view, more likely than not, this will lead to another
recession late in 2010 or in 2011. And nothing in the President’s budget
changes this outlook.
• The mindset will not change; a depressionary relapse may be coming
(March 2010): the inventory cycle’s impact on GDP growth will attenuate.
By the second half of 2010, inventories will not add considerably to GDP.
• US GDP growth rate is unsustainable; recovery will fade (April 2010): The
inventory cycle is already starting to fade. That means weak 1 or 2% growth
at best by Q4 2010. Unless job growth picks up tremendously by the
second half of the year, this recovery is in trouble.
David Rosenberg says the ISM leads jobs. And, the latest jobs numbers were
weak.
I would be nonplused about the recent ISM data if it weren’t for the column
highlighted in red. Notice how the momentum for everything is slowing. Not just
the overall index, but new orders, production and employment …’
U.S. Economy “Is a Complete Disaster” Yahoo! Finance | The U.S. economy is in
shambles and Americans will continue to see high unemployment and lower
living standards in the years to come. America is sinking under Obama’s
towering debt I hope the White House is paying attention to the latest
annual Congressional Budget Office Long-Term Budget Outlook, which
offers a truly frightening picture of the scale of America’s national debt, with
huge implications for the country’s future prosperity. 7.9 million jobs
lost, many forever CNNMoney | The recession killed off 7.9 million jobs. It’s
increasingly likely that many will never come back.
50 Random Facts That Make You Wonder What In The World Has Happened To
America The Economic Collapse | For those who still love this land (and there
are a lot of us) it is heartbreaking to watch America slowly die. BP,
Homeland Security, and Cops Work Together to Deny First Amendment Kurt
Nimmo | BP, Homeland Security, the FBI’s Joint Terrorism Task Force, and
local cops will now decide if it is acceptable for journalists to take
photographs. Will G20 Police Succeed In Covering Up Reports of Rape
and Torture? Infowars.com | Can authorities be allowed to cover-up the Abu-
Ghraib style incarceration methods Toronto police engaged in during the
G20 summit this past weekend, where women were arrested and
subsequently raped by male cops? Emergency S.O.S.: America Falling to
Foreign Bank Takeover – Fourth of July Alex Jones breaks down the
takeover by offshore banking powers– newly empowered by Congress’
banking “reform,” expanded taxes worldwide, as well as accelerated moves
towards ending the Dollar’s reserve status, including urging from a recent
United Nations report. More than one-quarter don’t know who US gained
independence from Every Fourth of July, Americans gather to celebrate the
country’s declaration of independence from … um, what country was that
again?
DRUDGEREPORT: TORN ON FOURTH OF JULY: OBAMA DIVIDES NATION...

Great Republic in parlous state -- politically, economically...
YEAR 9: Petraeus in Afghanistan warns of tough mission...

'We are in this to win' … Win what? The fact of america’s defacto bankruptcy and
being there IS failure no matter what they ultimately call this debacle ...
Illinois Stops Paying Its Bills...
Facing 'outright disaster' amid budget crisis...
Turn On, Tune In...Nah, Just Drop Out … Discouraged workers at a new cycle
high And small wonder. The median unemployment duration went to a new all-
time high (since the 1940s, anyway, when that series begins) and shows no signs
of slowing its ascent … (Chart, source Bloomberg)…
YEAR 9: Petraeus in Afghanistan warns of tough mission … What mission? What

plan?.What strategy? National bankruptcy?… Mission accomplished! ...
NY Times’ Krugman: We Are Entering The Third Depression Recessions are

common; depressions are rare. [Correction: we’re already in a depression].
JUNE UNEMPLOYMENT 9.5%... 125,000 JOBS LOST...

Rate dips as 652,000 give up search...
Depressing... [That’s why they’re called depressions (just kidding … but no
laughing matter) … At this rate, with all those lost jobs and jobseekers no longer
seeking those lost jobs that aren’t there, by their calculations (9.5% the bright
spot … riiiiight!) we should be at full employment very soon … you can’t make
this stuff up … really!].
Ron Paul: 114 Flip Flop on Audit The Fed Causing Bill to Fail 229 – 198 Ron Paul’s
attempt to audit the Federal Reserve, which was previously co-sponsored by 320
members of the House (HR 1207), failed by a vote of 229-198. All Republicans
voted in favor of the measure with 23 Democrats crossing the aisle to vote with
Republicans. 122 co-sponsors of HR 1207, all Democrats, jumped ship and voted
against the measure. The Future of Audit the Fed Congressman Ron Paul
discusses the latest in the efforts to get a full and complete audit of the Fed as
well as the future of Fed transparency. Like Congressman Paul says, we’ve
accomplished a lot of good with our movement, and there’s many reasons to be
optimistic for the future. Ditch the Buck! Dollar demise ‘a matter of months’ A
report by the United Nations says the American dollar should be ditched as the
main global reserve currency. It said that the global financial meltdown has
exposed systematic weaknesses, one of which is the reliance on the
greenback. G-20 is Relying on China To Drive the World Economy … But China
Isn’t Looking So Hot The G-20 is apparently relying on China to drive the world
economy.
Middle class families face a triple whammy Edmund Conway | Falling pensions,
cuts and the banking crisis will impoverish many families.
One of those … Daaaaah! Moments … Panetta says Afghan progress slower than
expected Los Angeles Times - Days after President Obama installed a new
US military commander in Afghanistan, CIA Director Leon E. Panetta
conceded Sunday that progress in the war has been "harder" and "slower
than I think ... Panetta says Afghan insurgents show no real interest in
reconciliation talks Washington Post CIA Retains Controversial Security
Firm in Afghanistan Wall Street Journal CIA: AFGHAN PROGRESS
'SLOWER' THAN ANTICIPATED… Daaaaah! ...
GOP chairman: Afghan 'war of Obama's choosing' (AP) - Republican chairman

Michael Steele drew criticism from within his own party Friday, including
calls to resign, after saying the 9-year-old commitment of U.S. troops to
Afghanistan was a mistaken ... [Steele is quite right and wobama and war
facilitators deserve criticism; not Steele.] Pelosi: Unemployment Checks
Fastest Way to Create Jobs “It creates jobs faster than almost any other
initiative you can name.” [pelosi’s so ‘in over her head’, burnt out, borderline
senile, etc.] Seventy million expired flu vaccines about to be incinerated
as waste [government / corporate welfare / fraud] Forty million doses of
H1N1 swine flu vaccine are about to go up in flames, and another 30 million
will soon meet the same fate. They’ve expired, you see, and despite the
CDC’s best efforts to push flu vaccines on the american people, the industry
still couldn’t find a way to offload seventy million doses of a vaccine that
doesn’t even work.
Israel Suspected in Bogus Claim Iran Developing Nuclear Trigger Kurt Nimmo |
The bogus claim prompted a new round of support for more aggressive U.S.
and European sanctions against Iran. Ron Paul: Audit The Fed Bill Fails
After Former Co-Sponsors Flip-Flop | Ron Paul’s attempt to audit the Federal
Reserve failed, after more than 100 former co-sponsors of the bill jumped
ship and voted against the measure. Dollar Plunges After UN Call To
Ditch Greenback | U.S. economy enters “total freefall”.
50 Random Facts That Make You Wonder What In The World Has Happened To
America - The Economic Collapse July 2, 2010 Our world is changing at a
pace that is so staggering these days that it can be really hard to fully grasp
the significance of what we are witnessing. Hopefully the collection of
random facts below will help you to “connect the dots” just a little bit. On
one level, the facts below may not seem related. However, what they all do
have in common is that they show just how much the United States has
fundamentally changed. Do you ever just sit back and wonder what in the
world has happened to America? The truth is that the America that so many
of us once loved so much has been shattered into a thousand pieces. The
“land of the free and the home of the brave” has been transformed into a
socialized Big Brother nanny state that is oozing with corruption and has
accumulated the biggest mountain of debt in the history of the world. The
greatest economic machine that the world has ever seen is falling apart
before our very eyes, and even when our politicians actually try to do
something right (which is quite rare) the end result is still a bunch of
garbage. For those who still love this land (and there are a lot of us) it is
heartbreaking to watch America slowly die.
The following are 50 random facts that show just how dramatically america has
changed….
#50) A new report released by the United Nations is publicly calling for the
establishment of a world currency and none of the major news networks are even
covering it.
#49) Arnold Schwarzenegger has ordered California State Controller John Chiang
to reduce state worker pay for July to the federal minimum allowed by law —
$7.25 an hour for most state workers.
#48) A police officer in Oklahoma recently tasered an 86-year-old disabled
grandma in her bed and stepped on her oxygen hose until she couldn’t breathe
because they considered her to be a “threat”.
#47) In early 2009, U.S. net national savings as a percentage of GDP went
negative for the first time since 1952, and it has continued its downward trend
since then.
#46) Corexit 9500 is so incredibly toxic that the UK’s Marine Management
Organization has completely banned it, so if there was a major oil spill in the
North Sea, BP would not be able to use it. And yet BP has dumped over a million
gallons of dispersants such as Corexit 9500 into the Gulf of Mexico.
#45) For the first time in U.S. history, more than 40 million Americans are on food
stamps, and the U.S. Department of Agriculture projects that number will go up to
43 million Americans in 2011.
#44) It has come out that one employee used a Federal Emergency Management
Agency credit card to buy $4,318 in “Happy Birthday” gift cards. Two other FEMA
officials charged the cost of 360 golf umbrellas ($9,000) to the taxpayers.
#43) Researchers at the State University of New York at Buffalo received $389,000
from the U.S. government to pay 100 residents of Buffalo $45 each to record how
much malt liquor they drink and how much pot they smoke each day.
#42) The average duration of unemployment in the United States has risen to an
all-time high.
#41) The bottom 40 percent of all income earners in the United States now
collectively own less than 1 percent of the nation’s wealth.
#40) In the U.S., the average federal worker now earns about twice as much as the
average worker in the private sector.
#39) Back in 1950 each retiree’s Social Security benefit was paid for by 16
workers. Today, each retiree’s Social Security benefit is paid for by
approximately 3.3 workers. By 2025 it is projected that there will be
approximately two workers for each retiree.
#38) According to a U.S. Treasury Department report to Congress, the U.S.
national debt will top $13.6 trillion this year and climb to an estimated $19.6
trillion by 2015.
#37) The federal government actually has the gall to ask for online donations that
will supposedly go towards paying off the national debt.
#36) The Cactus Bug Project at the University Of Florida was allocated $325,394
in economic stimulus funds to study the mating decisions of cactus bugs.
#35) A dinner cruise company in Chicago got nearly $1 million in economic
stimulus funds to combat terrorism.
#34) It is being reported that a 6-year-old girl from Ohio is on the “no fly” list
maintained by U.S. Homeland Security.
#33) During the first quarter of 2010, the total number of loans that are at least
three months past due in the United States increased for the 16th consecutive
quarter.
#32) According to a new report, Americans spend twice as much as residents of
other developed countries on healthcare, but get lower quality and far less
efficiency.
#31) Some experts are warning that the cost of bailing out Fannie Mae and
Freddie Mac could reach as high as $1 trillion.
#30) The FDA has announced that the offspring of cloned animals could be in our
food supply right now and that there is nothing that they can do about it.
#29) In May, sales of new homes in the United States dropped to the lowest
level ever recorded.
#28) In 1950, the ratio of the average executive’s paycheck to the average
worker’s paycheck was about 30 to 1. Since the year 2000, that ratio has
ranged between 300 to 500 to one.
#27) Federal border officials recently said that Mexican drug cartels have not only
set up shop on American soil, they are actually maintaining lookout bases in
strategic locations in the hills of southern Arizona.
#26) The U.S. government has declared some parts of Arizona off limits to U.S.
citizens because of the threat of violence from Mexican drug smugglers.
#25) According to the credit card repayment calculator, if you owe $6000 on a
credit card with a 20 percent interest rate and only pay the minimum payment
each time, it will take you 54 years to pay off that credit card. During those 54
years you will pay $26,168 in interest rate charges in addition to the $6000 in
principal that you are required to pay back.
#24) According to prepared testimony by Goldman Sachs Chief Operating Officer
Gary Cohn, Goldman Sachs shorted roughly $615 million of the collateralized
debt obligations and residential mortgage-backed securities the firm underwrote
since late 2006.
#23) The six biggest banks in the United States now possess assets equivalent to
60 percent of America’s gross national product.
#22) Four of the biggest U.S. banks (Goldman Sachs, JPMorgan Chase, Bank of
America and Citigroup) had a “perfect quarter” with zero days of trading losses
during the first quarter of 2010.
#21) 1.41 million Americans filed for personal bankruptcy in 2009 – a 32 percent
increase over 2008.
#20) BP has hired private security contractors to keep the American people away
from oil cleanup sites and nobody seems to care.
#19) Barack Obama is calling for a “civilian expeditionary force” to be sent to
Afghanistan and Iraq to help overburdened military troops build infrastructure.
#18) On June 18th, two Christians decided that they would peacefully pass out
copies of the gospel of John on a public sidewalk outside a public Arab festival in
Dearborn, Michigan and within 3 minutes 8 policemen surrounded them and
placed them under arrest.
#17) It is being reported that sales of foreclosed homes in Florida made up nearly
40 percent of all home purchases in the first part of this year.
#16) During a recent interview with Larry King, former first lady Laura Bush
revealed to the world that she is actually in favor of legalized gay marriage and a
woman’s “right” to abortion.
#15) Scientists at Columbia University are warning that the dose of radiation from
the new full body security scanners going into airports all over the United
States could be up to 20 times higher than originally estimated.
#14) 43 percent of Americans have less than $10,000 saved for retirement.
#13) The FDIC’s deposit insurance fund now has negative 20.7 billion dollars in it,
which represents a slight improvement from the end of 2009.
#12) The judge that BP is pushing for to hear an estimated 200 lawsuits on the
Gulf of Mexico oil disaster gets tens of thousands of dollars a year in oil royalties
and is paid travel expenses to industry conferences.
#11) In recent years the U.S. government has spent $2.6 million tax dollars to
study the drinking habits of Chinese prostitutes and $400,000 tax dollars to pay
researchers to cruise six bars in Buenos Aires, Argentina to find out why gay
men engage in risky sexual behavior when drunk.
#10) U.S. officials say that more than three billion dollars in cash (much of it aid
money paid for by U.S. taxpayers) has been stolen by corrupt officials in
Afghanistan and flown out of Kabul International Airport in recent years.
#9) According to a report by the U.S. Department of Transportation’s Bureau of
Transportation Statistics, the baggage check fees collected by U.S. airlines shot
up 33% in the first quarter of 2010 to $769 million.
#8) Three California high school students are fighting for their right to show their
American patriotism - even on a Mexican holiday - after they were forced to
remove their American flag T-shirts on Cinco de Mayo.
#7) Right now, interest on the U.S. national debt and spending on entitlement
programs like Social Security and Medicare are somewhere in the neighborhood
of 10 to 15 percent of GDP. By 2080, they are projected to eat up approximately
50 percent of GDP.
#6) The total of all government, corporate and consumer debt in the United States
is now about 360 percent of GDP.
#5) A 6-year-old girl was recently handcuffed and sent to a mental facility after
throwing temper tantrums at her elementary school.
#4) In Florida, students have been arrested by police for things as simple
as bringing a plastic butter knife to school, throwing an eraser, and drawing a
picture of a gun.
#3) School officials in one town in Massachusetts are refusing to allow students
to recite the Pledge of Allegiance.
#2) According to one new study, approximately 21 percent of children in the
United States are living below the poverty line in 2010.
#1) Since 1973, more than 50 million babies have been murdered in abortion
facilities across the United States.
Fed Made Taxpayers Unwitting Junk-Bond Buyers Bloomberg | So-called assets

included collateralized debt obligations and mortgage-backed bonds.
Dollar Plunges After UN Call To Ditch Greenback The dollar plunged today
following a United Nations report which called for the greenback to be
replaced as the global reserve currency by the International Monetary
Fund’s special drawing rights (SDRs). National debt soars to highest
level since WWII The federal debt will represent 62% of the nation’s
economy by the end of this year. Dollar should be replaced as
international standard, U.N. report says CNN | The dollar is an unreliable
international currency and should be replaced by a more stable system, the
United Nations Department of Economic and Social Affairs said. Double
Dip Picking Up: Jobless Claims Spike To 472,000, On Expectations Of
455,000 Jobless claims were a disaster, coming in at 472k, on expectations
of 455k. Prior was revised, surprise, surprise, higher to 459k from 457k.
What is scariest is that between extended benefits and EUC, now that
Congress has turned off the perpetual insurance spigot for the unemployed,
dropped by -158,155 and -217,513.‘Jobless Recovery’ Myth as Banksters
RAPE and ENSLAVE the Public! GET OFF YOUR KNEES! We’re told that
this will be a ‘jobless recovery’ with further job losses expected before
things get better. Well, if you believe that nonsense I’ve got a fantastic
sundrenched beach on the growing ice packs of Antarctica to sell you. How
on earth can there be anything called a jobless recovery? The simple answer
is that there can’t! Study: US media redefined torture after US started
practicing it The US news media radically changed how it reported on the
issue of waterboarding after it emerged that US forces had used the
practice, says a new study from Harvard University. The Toronto G20 Riot
Fraud: Undercover Police engaged in Purposeful Provocation Toronto is
right now in the midst of a massive government / media propaganda fraud.
As events unfold, it is becoming increasingly clear that the ‘Black Bloc’ are
undercover police operatives engaged in purposeful provocations to eclipse
and invalidate legitimate G20 citizen protest by starting a riot. Government
agents have been caught doing this before in Canada.
Obama Calls for Pentagon “Civilian Component” [Wow! Sounds like a plan …
riiiiight!] Kurt Nimmo | Obama wants to send civilians to the occupation
zones in Iraq and Afghanistan.
Drudgereport: JUNE UNEMPLOYMENT 9.5%... 125,000 JOBS LOST...

New jobless claims rise [again]...

'Surprise'...
Pending home sales plunge record 30%...
Weak economic data suggest 'recovery' fizzling...

Fears mount over slowing global demand...
UN committee calls for dumping US dollar...
YEAR 9: Petraeus in Afghanistan warns of tough mission … What mission? What

plan?.What strategy? National bankruptcy?… Mission accomplished! ...
Six Months to Go Until the Largest Tax Hikes in History...
SIX MONTHS TO GO UNTIL

THE LARGEST TAX HIKES IN HISTORY
From Ryan Ellis on Thursday, July 1, 2010 4:15 PM
Read more: http://www.atr.org/six-months-untilbr-largest-tax-hikes-

a5171##ixzz0sVN5aBH3
In just six months, the largest tax hikes in the history of America will take effect.
They will hit families and small businesses in three great waves on January 1,
2011:
First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small
business owners, and families. These will all expire on January 1, 2011:
Personal income tax rates will rise. The top income tax rate will rise from 35 to
39.6 percent (this is also the rate at which two-thirds of small business profits are
taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between
will also rise. Itemized deductions and personal exemptions will again phase out,
which has the same mathematical effect as higher marginal tax rates. The full list
of marginal rate hikes is below:
- The 10% bracket rises to an expanded 15%

- The 25% bracket rises to 28%
- The 35% bracket rises to 39.6%
Higher taxes on marriage and family. The “marriage penalty” (narrower tax
brackets for married couples) will return from the first dollar of income. The child
tax credit will be cut in half from $1000 to $500 per child. The standard deduction
will no longer be doubled for married couples relative to the single level. The
dependent care and adoption tax credits will be cut.
The return of the Death Tax. This year, there is no death tax. For those dying on
or after January 1 2011, there is a 55 percent top death tax rate on estates over $1
million. A person leaving behind two homes and a retirement account could
easily pass along a death tax bill to their loved ones.
Higher tax rates on savers and investors. The capital gains tax will rise from 15
percent this year to 20 percent in 2011. The dividends tax will rise from 15
percent this year to 39.6 percent in 2011. These rates will rise another 3.8 percent
in 2013.
Second Wave: Obamacare
There are over twenty new or higher taxes in Obamacare. Several will first go into
effect on January 1, 2011. They include:
The “Medicine Cabinet Tax” Thanks to Obamacare, Americans will no longer be

able to use health savings account (HSA), flexible spending account (FSA), or
health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-
the-counter medicines (except insulin).
The “Special Needs Kids Tax” This provision of Obamacare imposes a cap on
flexible spending accounts (FSAs) of $2500 (Currently, there is no federal
government limit). There is one group of FSA owners for whom this new cap will
be particularly cruel and onerous: parents of special needs children. There are
thousands of families with special needs children in the United States, and many
of them use FSAs to pay for special needs education. Tuition rates at one leading
school that teaches special needs children in Washington, D.C. (National Child
Research Center) can easily exceed $14,000 per year. Under tax rules, FSA
dollars can be used to pay for this type of special needs education.
The HSA Withdrawal Tax Hike. This provision of Obamacare increases the
additional tax on non-medical early withdrawals from an HSA from 10 to 20
percent, disadvantaging them relative to IRAs and other tax-advantaged
accounts, which remain at 10 percent.
Third Wave: The Alternative Minimum Tax and Employer Tax Hikes
When Americans prepare to file their tax returns in January of 2011, they’ll be in
for a nasty surprise—the AMT won’t be held harmless, and many tax relief
provisions will have expired. The major items include:
The AMT will ensnare over 28 million families, up from 4 million last year.
According to the left-leaning Tax Policy Center, Congress’ failure to index the
AMT will lead to an explosion of AMT taxpaying families—rising from 4 million
last year to 28.5 million. These families will have to calculate their tax burdens
twice, and pay taxes at the higher level. The AMT was created in 1969 to ensnare
a handful of taxpayers.
Small business expensing will be slashed and 50% expensing will disappear.
Small businesses can normally expense (rather than slowly-deduct, or
“depreciate”) equipment purchases up to $250,000. This will be cut all the way
down to $25,000. Larger businesses can expense half of their purchases of
equipment. In January of 2011, all of it will have to be “depreciated.”
Taxes will be raised on all types of businesses. There are literally scores of tax
hikes on business that will take place. The biggest is the loss of the “research
and experimentation tax credit,” but there are many, many others. Combining
high marginal tax rates with the loss of this tax relief will cost jobs.
Tax Benefits for Education and Teaching Reduced. The deduction for tuition and
fees will not be available. Tax credits for education will be limited. Teachers will
no longer be able to deduct classroom expenses. Coverdell Education Savings
Accounts will be cut. Employer-provided educational assistance is curtailed.
The student loan interest deduction will be disallowed for hundreds of thousands
of families.
Charitable Contributions from IRAs no longer allowed. Under current law, a

retired person with an IRA can contribute up to $100,000 per year directly to a
charity from their IRA. This contribution also counts toward an annual “required
minimum distribution.” This ability will no longer be there.
Read more: http://www.atr.org/six-months-untilbr-largest-tax-hikes-
a5171##ixzz0sVMwYIhK
Investors get more gloomy & bearish We just had a very difficult three month
stretch for stocks. The S&P 500 fell 12% for the quarter as did NASDAQ. The
Shanghai Composite, China’s largest stock index, fell 22.9 in its local currency,
the yuan. The MSCI EAFE Index (foreign stocks) was down 14%. Given the
negative news, it is not surprising that investors are becoming more bearish on
stocks. This chart from Bespoke is based on the weekly Investors Intelligence
survey, which is getting close to levels from a year ago. This is not close the
peak we reached in early 2009, but the mood is definitely more negative now:
[chart]
Double Dip on the Way There were many events contributing to yesterday’s sell-
off, and the most likely culprits around the globe included more protests in
Greece, continued to concerns about Europe at large, and a downward revision
(due to a calculation error) of a leading economic indicator reading in China for
the month of April. But when it comes down to it, our own economy has yet to
stand on solid ground. While the recovery has continued to be shaky at best,
recent economic readings may be pointing to a double dip recession. Yesterday’s
batch of economic data seemed to be confirming that, as it brought a very dismal
reading on consumer confidence. June’s number stood at 52.9, far below
expectations of 62.5, and pointing to the consumers’ weariness about the job
market, and economic recovery in general. To go further, the previous reading for
May was revised downward, to 62.7 from 63.3. But the drop from May to June
really sends the message home: we’re not out of the woods yet. Earlier in the
week, we saw personal savings rates rise again, even while personal income
growth was meager. Americans, despite bringing home a little more cash,
continued to save more for the expected rainy days, and have yet to return to
their spendthrift ways. After yesterday’s precipitous selling, one would expect to
see a bit of a bounce in today’s trading session. That wasn’t the case, however,
as more weak data continued to dampen economic hopes. Today’s culprit was
the ADP private sector job report. The report stated that private payroll gains
were muted in June, with only 13,000 jobs added – far less than the 60,000
expected by economists. While May’s reading was revised slightly upwards (to
57,000 hires from previously reported 55,000), today’s release does not bode well
for the much anticipated report from the Bureau of Labor Statistics due out on
Friday. The non-farms payroll survey includes government workers and has been
inflated in recent months due to hiring for the 2010 Census … [chart] …The June
report, however, will reflect many of those workers being laid off in the past
month. In May, 431,000 jobs were added, but without support from temporary
government hires, economists are predicting job losses in June. Last week,
consensus estimates were for a loss of 70,000 jobs for the month. By yesterday,
those estimates were downgraded further, to 110,000. With the help of today’s
ADP report, expectations have continued to fall: economists now expect a
reading of negative 125,000 …
Barron's: Why the Market Will Keep Sliding Perry D- Barron's has a nice
summary of what the future may hold in its "Up and Down Wall Street." It
summarizes as well as anything I've read recently where we're likely headed.
Bugging the (stock) market is the increasingly obvious disparity between what
the Street's incorrigible cheerleaders see and prophesy and what's actually
happening in the real world...The double dip in housing may or may not be a
template of what's in store for the economy as a whole. But at the very least, it is
a precursor of other serious disappointments destined to feed the unease among
the jittery populace, which most emphatically includes investors.
It cites the predictions of SDK Captial's Dee Kessler:
--the massive fiscal and monetary stimulus so liberally applied in

2008-2009 is starting to run out of steam, with financial conditions
tightening and leading economic indicators pointing to a stretch of
"anemic activity."
--"structural headwinds," such as public and private deleveraging,

higher taxes, greater regulation and trade tensions.
--the well-publicized woes of the European bloc, which accounts for

20% of the world's GDP, as further evidence that the global economy,
as he puts it, is downshifting.
--The period of easy comparisons in corporate results, he says, is

coming to a close,
--"Although the fundamentals in the U.S., Europe and Japan are

worse," Dee spots plenty of downside in emerging markets and
doesn't fancy the notion of decoupling.
--Come another financial crisis, "the only policy response left will be
to print money." Which, of course, is what the gold bugs are
counting on and why bullion has glistened so brightly.
That about sums up the outlook. The nice insight here is that anxiety over future
economic malaise -- and the additional money printing that'll be done to mask it --
might be a bigger factor than current inflationary pressure behind the surge in
gold prices.
In other words, for the deflation-believers: deflation today? Perhaps. But big-time
inflation tomorrow.
NY Times’ Krugman: We Are Entering The Third Depression Recessions are

common; depressions are rare. [Correction: we’re already in a depression].
Stocks: Once More Up, Then the Big Down Smith -The ingredients for a classic
head and shoulders topping pattern in the stock market are all present. That
suggests one more rise and then a massive grinding move down to 2009 lows.
Officially, of course, everything's peachy with the economy. Europe is fixed,
China is booming, consumer confidence is rising, and we are encouraged to
resume our borrow and spend ways as the economy will not "double-dip" into
recession. The economy will not slide into another recession, we are reassured
constantly, even though roughly 80% of Americans don't think we ever left the
recessionary quicksand. Please see "Two Scoop Special": Double-Dip Recession
Guaranteed (May 21, 2010) for more … Exactly what drivers are there for future
gains in corporate profits? I can't think of any, short of Martians landing and
going on a shopping spree with gold they manufacture in their spacecraft. On the
negative side, we have:
1. The rising dollar is a huge headwind to sales in the eurozone and elsewhere.
2. The low-hanging fruit of pushing the workforce to produce more output for the
same salary/wages have all been picked.
3. The inventory build-out is done for everything but the iPhone 4 and iPad.
4. So-called "fiscal austerity" (when did living within one's means become some
sort of brutual "austerity"? Talk abour propaganda!) in the eurozone and U.S.
states will remove tens of billions of dollars from corporate sales.
5. Global overcapacity is alive and well. There is overcapacity in everything
manufactured except the iPhone 4, and that will be in glut by 2011 as well.
6. Uncle Sam is not distributing trillions of dollars quite as freely. There seems to
be some glimmer of awareness that there could be consequences of squandering
trillions of borrowed dollars on essentially worthless projects such as occupying
Iraq, inflating the housing market by socializing the entire mortgage market,
propping up Fannie Mae, Freddie Mac and FHA, etc.
7. Housing is rolling over now that the socialized mortgage market has been
tentatively allowed to go off life-support (it is wheezing and turning blue in the
face, not signs of vibrant health).
8. There is no pricing power anywhere once stimulus-goosed demand declines to
organic demand (flat to down) …
Inflation, Deflation or Hyperinflation? (Part 2) (There are charts, but no matter

what the scenario posited, this time the territory’s uncharted, and the
debacle / crisis like no other owing to the advent of computerization will
have enabled an obfuscating tool of unprecedented proportion [worthless
paper, huge frauds as already extant], and a two-edged sword in the most
negative sense prospectively)
GREECE UNDER NEWS BLACKOUT: Here’s How An Eyewitness Describes
Today’s Riots There are reports this morning of violent protests/riots in
Greece, once again. Here’s how a source on the ground describes the
situation. Target Tehran? Israel, US ‘prepare to attack Iran’ Reports are
circulating that the U.S is amassing a greater military presence in the Middle
East. The alleged build up is also rumoured to involve the Israeli use of
Saudi Arabian air space. It’s thought by some to be in preparation for an
attack on Iran. Kucinich: ‘We are losing our nation to lies about the
necessity of war’ In Afghanistan, corruption is rife. It is so abundant, in fact,
that a senior US lawmaker declared on Monday that she’d be freezing $3.9
billion in Afghan aid dollars until the situation is addressed. Turkey bans
Israeli military flight from its airspace as freeze deepens Turkey has banned
an Israeli military flight from its airspace in apparent retaliation for Israel’s
interception of the Free Gaza flotilla last month, in which nine pro-
Palestinian Turkish activists were killed.
Iran nuclear scientist Shahram Amiri 'flees US captors' BBC News - A man who
says he is an Iranian nuclear scientist claims to have escaped after being
abducted by US agents. In a video shown on Iranian state TV, he says he has
escaped in the US state of Virginia and is now on the run. Missing Iran
scientist says he escaped US agents: report Reuters Turkey Asks Iran to
Return to Table Wall Street Journal
Momentum Book Update: The Market Is a Mess and the Long Bond Is About to
Break Out … Not only do us swing traders have to fight the urge to chase price
action up, but lay off the keyboard trying to catch falling knives in the relative
strength stocks which are holding up. If you tried to buy support in your favorite
names this week, you got your hands cut up. I’ll continue to rely on the
understanding of my own emotions as they have served me well. When we
opened higher on Monday morning I knew I was in the right place, cash, as the
market was just way overbought. If you bought most relative strength names last
week, by the end of this week you were well underwater. So where do we go from
here? I’ve got no clue, the market is a mess, the charts are a mess, and the long
bond is about to break out. If that happens all bets are off, we could see an
“event”. If the smart money is lining up at the exits and moving into bonds,
there’s a good chance they see something coming down the pipe …
SUITING UP FOR A POST-DOLLAR WORLD John Browne ‘The global financial

crisis is playing out like a slow-moving, highly predicable stage play. In the
current scene, Western governments are caught between the demands of entitled
welfare beneficiaries and the anxiety of bondholders who fear they will be stuck
with the bill. As the crisis reaches an apex, prime ministers and presidents are
forced into a Sophie's choice between social unrest and bankruptcy. But with the
"Club Med" economies set to fall like dominoes, the US Treasury market is not
yet acting the role we would have anticipated. … The newspapers are now riddled
with hints that foreign governments have lost faith in Washington and the dollar
reserve system. It seems to me only natural that after a century of war, inflation,
and socialism, the next hundred years would belong to those people who hold
the timeless values of hard money and fiscal prudence. Unfortunately, our
policymakers are not those people.’
China's Hu Jintao Says Group of 20 Must Coordinate to Consolidate Recovery

Bloomberg … How about the G195 countries in the world collectively be
considered in this task of coordination owing to the abject failure of the so-called
G20 which have in lockstep coordination precipitated this global crisis including
the war mongering, war criminal acts of the so-called nato allies et als,
particularly the u.s., and as well the likes of war criminal nation israel which have
never avoided a contra-indicated, anti-recovery war / conflict they could contrive /
rationalize. The so-called G7, 8, 9, 20, etc., are a pathetic bunch of incompetent
vegetables / jokers / showmen / clowns.
New York Times reporter calls Zionist terrorism ‘romantic’ A little-noticed

comment in a New York Times interview with Israeli opposition leader Tzipi
Livni has critics arguing that it shows the media has a “double standard”
when it comes to terrorism.
States of Crisis for 46 Governments Facing Greek-Style Deficits Californians

don’t see much evidence that the worst economic contraction since the
Great Depression is coming to an end. Unemployment was 12.4 percent in
May, 2.7 percentage points higher than the national rate. Evans-Pritchard
Announces Fed Contemplating $5 Trillion QE Expansion In his latest
column, the Daily Telegraph’s A. Evans-Pritchard does a good job of
recapping all the various reasons why Bernanke has now completely
cornered himself, and facing a newly collapsing economy, is left with just
one recourse: the printing of more, more, more paper. History Tells US
The Euro Will Not Survive, Greece Will Get Worse, And There Will Be A
Trade Shock With the PBoC’s currency announcement last Saturday and
the surge (!) in the value of RMB on Monday (all very kindly timed to add zest
to my meetings this week in Boston, New York, and Washington), you would
assume that today’s entry would be all about the RMB and the effect of the
PBoC announcement.
The following is really the quintessential question and issue, particularly in light
of america’s defacto bankruptcy and international law; but paramount
humanitarian concerns alone would militate against america’s current misguided
course. Is Petraeus McChrystal’s Replacement or Obama’s? Paul Craig Roberts
| All of this drama is playing out despite the continuing lack of any valid reason
for the american invasions of Iraq and Afghanistan.
Obama Can Shut Down Internet For 4 Months Under New Emergency Powers
President Obama will be handed the power to shut down the Internet for at
least four months without Congressional oversight if the Senate votes for
the infamous Internet ‘kill switch’ bill, which was approved by a key Senate
committee yesterday Congressman Rohrabacher: Almost All House
Republicans Think Iraq War Illegal, Immoral Andrew Napolitano’s new
Saturday show on the Fox Business Network is set to send shock waves
through the political establishment this weekend when his guest –
Republican Congressman Dana Rohrabacher – reveals that almost all House
Republicans now believe that the invasion of Iraq was not only a mistake,
but also illegal and immoral. New Financial Overhaul Gives Government
Broad New Powers To Seize Financial Firms The government would have
broad new powers to seize and wind down large, failing financial firms and
to oversee the $600 trillion derivatives market. Israeli Leaders Sued in
Belgium for War Crimes
U.N. confirms rise in violence in Afghanistan Obama Can Shut Down Internet
For 4 Months Under New Emergency Powers Food & Depopulation:
Scams and Solutions Cassandra Anderson | Beware of all NGOs and so-
called “non-profit” organizations. Congress Votes to Impose Embargo On
Iran Infowars.com | Congress believes more punitive measures are required
in order to punish the Islamic state. G20: Activists Arrested, Denied Entry
into Canada Kurt Nimmo | Charlie Veitch of The Love Police arrested, Luke
Rudkowski and fellow activists denied entry in New York.
Israeli Leaders Sued in Belgium for War Crimes Former Prime Minister Ehud
Olmert, Israeli opposition leader Tzipi Livni and Defense Minister Ehud
Barak were among those charged with war crimes committed during the
Gaza war in the winter of 2008-09, the French daily Le Monde reported.
Congress OKs sanctions on Iran’s energy, banks Congress on Thursday
approved tough new unilateral sanctions aimed at squeezing Iran’s energy
and banking sectors, which could also hurt companies from other countries
doing business with Tehran.
Cybersecurity Measures Will Mandate Government “ID Tokens” To Use The

Internet The move to shut down and regulate the Internet, the only source of
uncensored news and truth, under a new government-controlled system has
accelerated into high gear with the announcement that the government’s
cybersecurity strategy revolves around issuing Internet users with ID
“tokens” without which they will not be able to visit websites, the latest
salvo against web freedom which, in combination with Senator Joe
Lieberman’s ‘kill switch’ bill, will serve to eviscerate the free Internet as we
know it.
Turkey, the World Leader of Nations, bans israeli military flight from its airspace
as freeze deepens The Guardian -Turkey has banned an israeli military flight
from its airspace in apparent retaliation for Israel's interception of the Free
Gaza flotilla last month, in which nine pro-Palestinian Turkish activists were
killed. Turkey restricts israeli use of airspace CNN International Turkey bars
israeli planes ABC Online netanayahu rules out apology to Turkey over
deadly raid (AFP)
G-8 ‘fully believes’ Israel will attack Iran, says Italy PM Haaretz | World leaders
“believe absolutely” that Israel may decide to take military action against Iran.
Britain will not defeat Taliban and should open talks, says head of Army
London Telegraph | Britain and its allies will not defeat the Taliban with military
force and should soon open peace talks with insurgents in Afghanistan, the head
of the Army said yesterday.
3 SIGNS OF A SUCKER RALLY Simon Maierhofer ‘ … AFTER EXAMINING

TECHNICAL EVIDENCE, SENTIMENT INDICATORS AND VARIOUS VALUATION
METRICS, IT BECOMES OBVIOUS THAT THE RECENT BOUNCE PROVIDES A
SELLING, NOT BUYING OPPORTUNITY ...’
Russell: This Is One Of The Largest Tops In Stock Market History Richard
Russell has grown very vocally bearish in recent months. Earlier this year,
Russell warned that the stock market was once again becoming grossly
overvalued despite its relentless new highs. Pragmatic Capitalism June 24,
2010 Richard Russell has grown very vocally bearish in recent months.
Earlier this year, Russell warned that the stock market was once again
becoming grossly overvalued despite its relentless new highs. He has
maintained that the bear market never ended and that the world is far too
indebted to exit the bear market. He also believes the bear will not end until
all fiat currencies have failed. Although I disagree with him on many aspects
of the micro I agree with his larger macro outlook. This bear market is not
over. The secular bear market lives on. Mr. Russell thinks we might be on
the verge of a terrible collapse:
“We’re now in the process of building one of the largest tops in stock
market history. The result, I think, will be the most disastrous bear market
since the ‘30s, and maybe worse.
Question: “What could possibly be behind such a bear market?” you ask.
“The stock market is stirring up optimism on a weekly, if not daily basis, by
not falling apart.”
Answer: This is the “rest” or “dead zone” I was talking about. Bear markets
don’t conclude in a day, a week or a month. Months will go by, often adding
to the bulls’ optimism.I think the key element behind this great bear market
will be the complete destruction of all fiat currencies. This has been a long
time coming. Fiat currencies are “wealth” created by man. They are created
without sacrifice, without labor, without risk, and without sweat. Basically
they are an immoral device, created by secretive bankers. If you watch the
figures carefully, you’ll note the subtle deterioration. For instance, the
advance-decline ratio, although up slightly for the week, had a relatively
weak performance with the Dow up several hundred points over the course
of the week. And we broke the trendline in May (see the chart below showing
the cumulative advance-decline line for NYSE Common Stock only, which is
what we publish in our figures (courtesy of DecisionPoint —
www.decisionpoint.com). The vertical lines are Jan 2008, Jan 2009 and Jan
2010 as you move to the right on the chart. [CHART] My old friend, Bob
Prechter, is talking about Dow 400. I used to think this was an absurd joke. I
no longer think it’s a joke. The ultimate result will be a primary bear market
shocking in duration and extent. …’
Reports: IAF Landed at Saudi Base, US Troops near Iran Border Arutz Sheva |
The Israeli Air Force recently unloaded military equipment at a Saudi Arabia base,
a semi-official Iranian news agency claimed Wednesday. It’s time for the world
to take a close look at the despotic, totalitarian regime that presently exists for
the grandeur and wealth of a few while hiding behind Islam as they betray same
and Muslims everywhere. The time has come for regime change in Saudi Arabia
to yield a nation of and for the people of Saudi Arabia and the glory of Islam.
[It should be noted, and there have been a multitude of other instances, that I’m
getting substantial ‘attacks’ vis-à-vis my internet connection which has
slowed dramatically these posts. I don’t think the interference is either
accidental or just coincidental but consistent with that similarly experienced
by critics of corrupt defacto bankrupt america of which I am one and not
alone in that regard – slowing, militating against the devastating truth about
america. It should be noted that yet another attempt by the criminal
american government and related partners in crime to silence an unwavering
critic (to really understand america is to not be able to stand pervasively
corrupt and defacto bankrupt america and her failed criminal cohort
nations / lapdogs, ie., uk, eu, israel, etc.), in contravention of first
amendment rights / protections, and as in the RICO case [
perjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ] to cover up
substantial crimes in which the government was / is also involved. Some
delays but a work-around is in progress. I won’t forget this and a price will
be paid, as continues to be true. (6-22-10)THE WORK-AROUND-IN-
PROGRESS I ALLUDED TO IS NOW FOR THE MOST PART SUCCESSFULLY
COMPLETED BY WAY OF A DSL CONNECTION AND A DELL COMPUTER.]
Cases against Wall Street lag despite Holder’s vows to target financial fraud
Washington Post | Obama has promised to hold Wall Street accountable for
the meltdown. Drudgereport: States Take Aim at Pension Costs...
...Bank failure pace more than double last year REPORT: Madoff tells
cellmates of $9 billion stash... they all have them … Cases against Wall
Street lag despite Holder’s vows to target financial fraud THOMAS
SOWELL: Is USA Now On Slippery Slope To Tyranny?
China To Overtake USA In Manufacturing FT | The US remained the world’s

biggest manufacturing nation by output last year, but is poised to relinquish
this slot in 2011 to China – thus ending a 110-year run as the number one
country in factory production.
Housing Double Dip Accelerates As Existing Home Sales Plunge -2.2% In May
Versus 6.0% Consensus, Down From 8% In April
When will the SEC prosecute for market rigging? Michael Schmidt | Are the large
gold bullion banks working in collusion with the US Federal Reserve to
artificially torpedo the key rival to US dollar hegemony? China To
Overtake USA In Manufacturing FT | The US remained the world’s biggest
manufacturing nation by output last year, but is poised to relinquish this slot
in 2011 to China – thus ending a 110-year run as the number one country in
factory production.
Connecticut vegetable lieberman: China Can Shut Down The Internet, Why Can’t
We … (great logic from a totalitarian zionist)? Senator joe Zelig the zionist israeli
lieberman, co-author of a bill that would give President Obama a ‘kill switch’ to
shut down parts of the Internet, attempted to reassure CNN viewers yesterday
that concerns about the government regulating free speech on the web were
overblown, but he only stoked more alarm by citing China, a country that censors
all online dissent against the state, as the model to which American should
compare itself.
Mexican drug cartel threatens to harm U.S. police officers who bust drug
shipments while off-duty New York Daily News | Mexican cartels added a new
twist to the drug war this week by threatening to kill U.S. cops who seize
their goods. Former Israeli top spy calls for strike on Iran Israel should
launch a pre-emptive strike to prevent arch-foe Iran from going nuclear, a
former head of Israel’s Mossad intelligence agency said on Monday.
Israel’s Planned Attack on Iran from Caucasus Base A week ago, Israel
leaked to the press that they had permission from Saudi Arabia to use their
air space to attack Iran. The Saudi’s quickly denied this.
$34 Billion Asset Manager Says Market Prices Are Manipulated, Accuses NYSE Of
Intellectual Property Theft, Debunks HFT “Liquidity Provider” Lies
Soros Says ‘We Have Just Entered Act II’ of Crisis Bloomberg | Soros said the
current situation in the world economy is “eerily” reminiscent of the 1930s.
Gerald Celente: U.S. Financial Markets to Collapse by End of 2010 Infowars.com |
Gerald Celente is a renowned trend forecaster, publisher of the Trends Journal,
business consultant and author who makes predictions about the global financial
markets and other events of historical importance. Jobless Claims in U.S.
Decreased Last Week to 456,000 Bloomberg | More Americans than anticipated
filed applications for unemployment benefits last week.
Market Outlook: Bearish Background to Bullish Storyline Sean Hannon: ‘The last
two weekly market commentaries have discussed how the underlying trend of the
market is now bearish and all rallies should be used to sell stocks and reduce
risks. With nearly every news outlet spouting the bullish storyline, these articles
served as an outline of a disciplined investment strategy. Those who followed the
outline have done well as the Dow Jones Industrial Average (Dow), S&P 500, and
NASDAQ each declined over 5% since my initial warning. With the Dow still stuck
below the psychologically important 10,000 level and all three major U.S. markets
trading beneath their 200-day moving averages (MA), the bearish backdrop is
clear. Even if many are still looking for a rally, we should understand that the
primary trend is lower. Instead of focusing on how high prices will rally, we
should instead consider how much further prices can fall …’
Greek Default Seen by Almost 75% in Poll Doubtful About Trichet Global
investors have little confidence in Europe’s efforts to contain its debt crisis or in
European Central Bank President Jean-Claude Trichet, with 73 percent calling a
default by Greece likely. 12 Reasons Why The U.S. Housing Crash Is Far From
Over Over the past several months, many in the mainstream media have hailed
the slight improvement in the U.S. real estate market as a “housing
recovery”. US Needs Austerity Too: Hedge Fund Strategist The United States
will have to adopt austerity measures similar to the ones taken in Europe,
because the problems faced are largely the same, Timothy Scala, macro-
strategist at Sophis Investments, told CNBC.com. Market Analyst: ‘BP’s Not
Going to Last as a Company More Than a Matter of Months’ We’ve heard
politicians, even conservative Republicans, suggest BP would be held completely
responsible for the devastation caused by the oil spill plaguing the Gulf of
Mexico, even if it means its very existence.
Israeli Official Threatens to Kill Turkish PM Kurt Nimmo | It is unprecedented for a

top level state official to threaten a head of another state with murder.
US Media Terrified Of Mentioning USS Liberty Do you know that an american

naval vessel was attacked by israel in international waters, 43 years ago today,
resulting in the deaths of dozens of american sailors Arab lawmaker on flotilla
sparks outrage in israel (AP) - An Israeli-Arab lawmaker's decision to join
hundreds of activists on a pro-Palestinian flotilla has elevated her from relative
political obscurity, transforming her into the poster child for the ...
Why To Question the 2010 Stock Market Rally [Why To Question the 2010 Stock
Market Rally – Web Site Archived with Charts Click Here - In the past year,
we've written a lot about the similarity between the rally of early 1930 and the
one we had through April of this year. The early 1930 rally came after the
market had fallen nearly 50% in the fall of 1929. The spring 1930 rally took
the market up nearly 50% again, to a level that was only about 20% below the
previous peak. That rally, of course, was also the biggest sucker's rally in
history. After the market peaked in April 1930, it crashed again, eventually
ending up down 89% from the 1929 high and more than 80% from the 1930
high. The market did not reach the 1930 high again for another quarter of a
century. The rally that recently ended in April 2010 came after a crash that
was actually slightly more severe than the 1929 crash (53% versus 48%). It
took the market up nearly 80% from the low! The recent rally also lasted
longer than the 1930 rally did--a year, as opposed to 6 months … ]
REMEMBER: In 1930, They Didn’t Know It Was “The Great Depression” Yet In the
past year, we’ve written a lot about the similarity between the rally of early
1930 and the one we had through April of this year. Investment Banker: It’s
Going To Get Nasty – Buy Land, Barbed Wire And Guns A top investment
banker has warned that the economic fallout of the sovereign debt crisis
could get so nasty over the next five years that people would be wise to
abandon the markets and instead buy land, barbed wire and guns.
DEBT POISED TO OVERTAKE GDP Key Indicators of a New Depression

Neeraj Chaudhary | Great Depression II developing into something far more
devastating than its predecessor You’re Being Decieved Infowars.com | We’re
heading over an economic cliff and there’s nothing the government can or will do
about it except lie. The Folly of Blindly Trusting the Government
‘What Does China Want?’ They want to speak to Rosanne Rosanna Danna, of
course! ‘Asian markets tumble on fears over Hungary’ …Riiiiight! Hungary’s the
thing! … Rosanne Rosanna Danna, formerly of SNL fame wanted in Asia to chime
in with what her mama always used to say, ‘ It’s always something ‘ . Of course, it
matters little to the frauds on wall street what the something is said to be since
the reality is … ‘This is a global depression. This is a secular bear market in a
global depression. This was a manipulated bull (s***) cycle in a secular bear
market. This has been a typically manipulated bubble as has preceded the prior
crashes with great regularity that the wall street frauds and insiders commission
and sell into. This is a typical wall street churn and earn pass the hot potato scam
/ fraud as in prior crashes.’ ( It should be noted, and there have been a multitude
of other instances, that I’m getting substantial ‘attacks’ vis-à-vis my internet
connection which has slowed dramatically these posts. I don’t think the
interference is either accidental nor just coincidental but consistent with corrupt
defacto bankrupt america’s critics of which I am one and not alone in that regard
– slowing, militating against the devastating truth about america.) Europe is
Heading for a Depression Despite a nearly-$1 trillion rescue operation, financial
conditions in the eurozone continue to deteriorate. All the gauges of market
stress are edging upwards and credit default swaps (CDS) spreads have widened
to levels not seen since the weekend of the emergency euro-summit. Key
Indicators of a New Depression With the mainstream media focusing on the
country’s leveling unemployment rate, improving retail sales, and nascent
housing recovery, one might think that the US government has successfully
navigated the economy through recession and growth has returned. Get Ready
for a Double Dip … but many warning flags point towards significant
deterioration in the U.S. and global economy going forward and so I think that by
the end of the year or early 2011, we could very well be facing a new leg down in
the world’s economic situation … [I’d say too optimistic since, to reiterate: This is
a global depression. This is a secular bear market in a global depression. This
was a manipulated bull (s***) cycle in a secular bear market. This has been a
crashes.]
european central banks intervened to shore up the ever more worthless euro,
buying into that fraudulent wall street b*** s*** story that that ‘s a good thing,
rallying stocks off their lows. It is amazing how dumb europe has become so
quickly. An exception is what I believe was Germany’s steps against derivatives,
which market according to a derivatives trader on the radio this day is a $40
trillion market (missed his name). To reiterate as applicable to yet another
fraudulent scheme previously stated, said market is paper on paper moving
around and generating commissions at lightning computerized speed but adding
no real value in real economic terms; again, the analogy of termites eating away
at the (nation’s) foundation is apposite. As such, that money has to come from
some real place and hence, the ever more frequent and larger crashes we are
seeing. Don’t forget that the worthless paper from previous such fraudulent
schemes now marked to anything is still out there in a magnitude some have
placed in the hundreds of trillions.
The Worst Money Supply Plunge Since The Depression Means A Double Dip Is
Now A ‘Virtual Certainty’ The stock of U.S. money as measured by ‘M3′ money
supply fell to $13.9 trillion from $14.2 trillion during the three months ending in
April. [ This is still an extraordinarily high level but … I don’t buy it. I believe the
printing presses have been working overtime to pump out ever more worthless
fiat currency and with the many trillions of worthless fraudulent paper still out
there and marked to anything. I further believe the same is being surreptitiously
used to supplant the fraudulent paper, the consequences of which will be
devastating, of course, as is invariably so in depressions in any event. This
scenario would also mean huge fraud accomplis. ] Fiat Money Supply
Contracting at Great Depression Level The bankster operative who helped
destroy Glass-Steagall is back. Larry Summers, Obama’s top economic adviser,
has told Congress to “grit its teeth” and approve a fresh fiscal boost of $200
billion to keep growth on track, reports the Daily Telegraph. Fiat Money
Supply Contracting at Great Depression Level Kurt Nimmo | The Federal Reserve
stopped publishing M3 figures back in 2006.
Sell in May and Go Away, Indeed [ I wasn’t kidding; and, I’m still not kidding
when I say: This is a great opportunity to sell / take profits because there’s
much worse to come! ]
Forecasts from Dent, Napier, and then Prechter: Depression is Imminent The Dow
Jones Industrial Average will go down to at least 1000, most likely to below
777 which was the starting point of its mania back in August 1982, and quite
likely drop below 400 at one or more times during the bear market.
10 Reasons to Worry About Margin Growth … a good portion of these factors will
likely impact margins by the end of the year. I don’t believe this is
adequately factored into earnings estimates across the board. Given this, I
believe we have seen the highs for the year and next few quarters will be
extremely volatile ...
Dow Theorist Richard Russell: Sell Everything, You Won’t Recognize America By
The End Of The Year Business Insider | “Pul – leeze, get out of stocks now,
and I don’t give a damn whether you have paper losses or paper profits!”
The frauds on wall street et als should be criminally prosecuted, jailed, fined and
disgorgement imposed. If that were so, they wouldn’t be worrying about who
wins / loses since those who fraudulently play, invariably would (and should)
pay. If they’re not prosecuted, everyone loses.
POST MORTEM AND REVIEW Ricky:

A post mortem is in order. The elements of this worldwide con game are
remarkably simple, not complex at all. Apparently you only need a few things to
make a mockery of the entire global economic system, and big banks garnered
these few important things through “regulatory capture”:
1) Unregulated, unenforced rules (particularly for derivatives)
2) license to “mark to model” (assign your own values to your assets)
3) ability to peg present value to irrational expected future returns (based on
unlimited, exponential growth)
4) infinite leverage (no effective requirements for reserve capital in unregulated
“shadow” markets)
5) massive size, so that the bank is "too big to fail"
6) non-transparency and non-accountability.
SELL IN MAY AND GO AWAY!
THE FORECASTS:
and 2012
Russell Napier is the author of the book “Anatomy of the Bear”, a professor at the
Edinburgh Business School and a consultant to CLSA Ltd. which is one of the
top research houses in Asia. Napier’s research indicates (and I paraphrase) that:
The S&P 500 will Decline to 400 by 2014 (the Dow 30 to 3800)
The S&P 500 will then undergo a major crash that will see U.S. equity prices
bottom at almost 50% below current levels (i.e. to 400 or less; the Dow 30 to 3800
or less) sometime around 2014 as Tobin’s “q” drops to 0.3 signaling the end of
the bear market, as it has done at the end of the four largest U.S. market declines
in 1921, 1932, 1949 and 1982.
U.S. Treasury Sales Collapse Leading to End of U.S. Dollar as Reserve Currency
Robert R. Prechter Jr. is author of a number of newsletters and books including
“Elliott Wave Principle” (1978) in which he predicted the super bull market of the
1980s; “At the Crest of the Tidal Wave – A Forecast of the Great Bear Market”
(1995) in which he predicted a slow motion economic earthquake, brought about
by a great asset mania, that would register 11 on the financial Richter scale
causing a collapse of historic proportions; and “Conquer the Crash: You can
Survive and Prosper in a Deflationary Depression” (2002) in which he described
the economic cataclysm that we are just beginning to experience and advised
how to position one’s self financially during that period of time.
Depression is Imminent
The Dow Jones Industrial Average will go down to at least 1000, most likely to
below 777 which was the starting point of its mania back in August 1982, and
quite likely drop below 400 at one or more times during the bear market.
According to the Debt Clock:
• Total national debt: $13 trillion

• Debt per citizen: $42,026
• Debt per taxpayer: $117,982
• Total interest due: $1.9 trillion
• Interest per citizen: $2,211
Click here to see the Debt Clock, which is updated every second.
• Total personal debt: $16.5 trillion

• Total mortgage debt: $14.1 trillion
• Total consumer debt: $2.45 trillion
• Personal debt per citizen: $53,483
• Debt held by foreign countries: $4.07 trillion
http://www.usdebtclock.org Get Real Time U.S. Debt Data


TED OLSON SEEKING TO OVERTURN CALIFORNIA'S PROPOSITION 8, WHICH

LIMITS MARRIAGE TO A MAN AND A WOMAN. After shilling for the corrupt
u.s. government as solicitor general, maybe he just wanted to go straight
[Just Kidding!]. There is no immunity, judicial or otherwise for criminal acts.
Moreover, there is no sovereign immunity for non-governmental acts as
would include involvement in the illegal drug and related crimes, ie.,
bribery, etc., and the supreme court has so held against foreign nations in
the context of the RICO statute but in my RICO case olson the liar would
shill otherwise, not that he really had to worry in light of the pervasively
corrupt and wastefully costly federal courts which should be abolished.
NATION NEWS DIGEST: J.P. Morgan Chase posts $4.8 billion profit (Washington
Post) Yet another ‘Come on’ day on fraudulent wall street! This time it’s the
unexpected jump in continuing claims for unemployment, yesterday the
downward revision to previous market-frothing retail sales report and poor retail
sales and plunge in mortgage applications and then there’s the fed minutes
pointing to extended bad economy. Then there’s also now the ‘goldfinger factor’
as in goldman’s middle finger. When you defraud for many billions, paying $550
million is chump change. Goldman shares rocketed 5.5% in after-hours trading.
No wonder Goldman called it "the right outcome for our firm shareholders and
clients." (Absent prosecutions, they’ll continue to do what comes natural to
frauds on wall street). Great opportunity to sell / take profits since much worse,
also called reality beyond the b*** s***, to come. Then there’s also the bad but
typical news; viz., previous retail sales, mortgage apps, economic outlook down,
and continuing claims for unemployment, deficits, trade / budget, up. (Just in: 7-
16-10 Poll – only 43% of Americans approve of the Afganistan War, down from
52% in January, 2010)
Pearlstein: Can regulation beget innovation? (Washington Post) I believe the

more seminal question to be, whether american companies, consistent with
overall american decline and corruption in so pervasive a fashion, are capable of
or inclined toward real innovation where enhancements to productivity, as well as
greater profits, is the consequence as desired. Certainly there has been
‘innovation’ by the wall street frauds in the types of (ultimately worthless /
fraudulent) paper and high frequency trade programs enhancing their bottom-
lines but little else; and, those cutting edge ‘weapons of mass destruction’
produced or financed (israel) by america are hardly productive in the economic
sense but innovative and profitable in the short run, and unwise and nation-
bankrupting in the longer run which we’re in right now!
Grace Kelly: Eternal fashion icon (Washington Post) To reiterate, I seldom

comment on entertainment matters; but, I also would not pass up the
opportunity to pay homage to such a ‘magnificent and exotic creature (in the
most positive sense the term is used)’ as Grace Kelly, the Eternal Princess. I
previously referenced her in the post which follows and includes the context
of the post. One might say, London Exhibit? What? Yet, Alfred Hitchcock’s
good taste and keen eye for splendor and beauty was not lost on Grace
Kelly about whom he publicly raved (he also admitted his love for Cary
Grant, but not that way. No, Alfred Hitchcock was not a homo).
Mideast Digest: Wow! Belfast, Northern Ireland; and in the Mideast Digest
Section, of all places. It’s been a long time. While I have had some
difficulties with Irish mob in the context of litigation but only tangential to
my primary RICO action vis-à-vis the Italian mob (and similarly tangentially
the jewish mob and then primarily what I learned to be ‘governmental mob’,
federal, state, local, derivative thereby and the sine quo non of corruption /
bribery / synergy that spells decline for any nation), it is difficult to not be
empathetic to the plight of an otherwise beautiful nation tainted only by the
orange stain in that northern quarter. After all, what hasn’t england not
mucked up from balfour to the mideast to now even their own nation having
hitched a ride on the american / israeli crazy train. As a matter of disclosure,
I must admit to an affinity for the Irish and somewhat fairly recently had been
asked what I thought of Philadelphia to which without hesitation I
immediately replied that Grace Kelly (truly magnificent by any standard) was
born there. I could think of nothing else that could parallel such a
distinction.
Congress: Gone fishing?: With the economy slowing again, scores of

nominations awaiting confirmation and major issues such as climate change
and immigration unresolved, Congress has left town for its traditional six-
week August recess. Is that smart leadership? At what point should leaders
change well-established routines to signal that 'business as usual' is no
longer acceptable? (Washington Post) [ I truly feel and without exaggeration
that the situation’s beyond that point. Forget not the raises they’ve voted
themselves even as the nation crashes and burns. Moreover, in addition to
incompetent, I have found them, their agencies, appointees, etc., venal,
corrupt, and meaningfully lawless (see infra). Then there’s the perpetual
wars despite defacto bankruptcy of the nation. I don’t think this nation will
stand, certainly not as we knew it. They’ve made really, irrevocably bad
choices. Their incompetence is one thing; but, as I have experienced, their
corruption is quite another and totally, unequivocally unacceptable! ]
U.S. to host Mideast peace talks (Washington Post) [ Call me skeptical, cynical,
etc., but somehow, u.s. juxtaposed with the words Mideast, peace strains
credulity and just doesn’t ring true! ] While citing obstacles, White House
expresses hope that deal for Palestinian state may come soon.
U.S. examines private sector's role in affordable housing (Washington Post) [ I’m
sorry to say that in pondering the so-called policy-makers in Washington or
in the corporate boardrooms that I’m hard-pressed to dismiss from my
mind’s eye a picture of a bunch of scarecrows fumbling around while
singing refrains such as ‘if they only had a brain’ cirque the land of the
wizard of oz. The reality is that some basic grasp of economics, finance,
business would go a long way in a more positive sense for the nation. Then
there’s those infamous internment / concentration / ‘affordable housing’
camps that’s been filtering through the filters, so to speak.] The Obama
administration is grappling over how much to force private lenders to pay
for apartments and homes for the poor as it presses ahead with a major
overhaul of the government's housing policy, officials said.
Officials: Karzai aide part of wider probe (Washington Post) If only he hadn’t taken /
made those calls to the Taliban, things would still be aok for america. Yeah,
they’d be ‘down with it’. You know, everything copasetic …
Hopes … ah, yes, hopes … as in heroin high hopes, or high apple pie in the sky
hopes, or the u.s. ram that kept buttin’ that dam high hopes? Sounds like a
plan! Riiiiight! U.S. hopes Afghanistan-Pakistan trade deal boosts
cooperation in war effort: U.S. … hopes more cooperation will aid war effort
(Washington Post)
Israeli-Palestinian peace talks expected to resume in September: Quartet to issue

invitation for Israel and Palestinians (Washington Post) Ah yes! The sound
of peace breaking out all over in the Middle East. If you don’t hear it, it’s
probably owing to the latest pretext by Israel to sabotage the same.
Mideast DIGEST (Washington Post) netanayahu admits on video he deceived US

to destroy Oslo accord The contents of a secretly recorded video threaten to
gravely embarrass not only Benjamin netanayahu, the Israeli prime minister but
also the US administration of Barack Obama.
Ex-bank executives say their dismissals caused panic withdrawals in Kabul (Post,
September 4, 2010; 8:52 AM) Karzai urges Afghans not to panic as bank
withdrawals accelerate (Post, September 4, 2010; 3:11 AM) Suicide bombing kills
at lesat 55 (Washington Post) Pakistan… After Iraq war, uncertainty and
seemingly mixed messages (Post, September 2, 2010; 4:26 PM) [ What do these
nations have in common? An american presence … and from the foregoing it’s
clear that this sounds like a reporting job for Rosanne Rosanna Dana of SNL
fame who has insight into such scenarios as this ‘cause her mama always said …
it’s always something! ]
A quandary in Afghan corruption fight (Washington Post) U.S. effort to help

Afghanistan fight corruption has complicated ties [ Complicated ties, I’d say
so, and a quandary indeed! Particularly when the corruption and ties are of
the homegrown american variety as in opium / heroin trade (all but eradicated
by theTaliban) and the bribes, ‘takes’, cover-ups, etc., involved therein. ]
U.S. to temper stance on Afghanistan corruption (Washington Post) [ Sounds

like a plan! After all, in america’s own image of corruption, ie., bribery, heroin
trade, etc., they’re remolding Afghanistan replete with good old american style
corruption and they don’t want no noses pokin’ around to see america’s direct
involvement in the corruption, bribery, etc., and particularly the heroin trade, the
american raison d’etre there where the Taliban had all but eradicated the heroin
production / trade which surged thereafter with the american participation. The
American rationale seems to be, continue the corruption, etc., since to eliminate
same would help the Taliban. Riiiiight! My, oh my! You can’t make this stuff up.]
Military officials conclude that effort to drive out all but the most corrosive
abuses in region would create a power vacuum that Taliban could exploit.
Previously: Karzai's bid to control inquiries worries U.S. (Washington Post) [My
Lord! You just can’t make this stuff up! The americanization of Afghanistan
… hopelessly corrupt … but american ‘liberators’ want their cut from the
now hopelessly corrupt liberated nation, in america’s own image, of the
heroin trade they’ve worked so hard to restore.] There is growing concern
that U.S. support for the war will diminish further if voters continue to see
the Afghan government as hopelessly corrupt.
CIA acting on fear of terror attacks in Europe (Washington Post) [ Riiiiight! That
europe concern ... that same concern that dragged them down the same
american drain called perpetual, nation-bankrupting war and blowback … Sounds
like a plan! Those dumb Europeans! ]A sharply escalated campaign of CIA drone
strikes in Pakistan is aimed in part at al-Qaeda units suspected of planning
terrorist attacks on targets in Europe.
Part 3: Woodward's 'Obama's Wars' 'We need to make clear ... the cancer is in
Pakistan' (Washington Post) [ How ‘bout the reality that the cancer is in
Washington and tel aviv! I mean, come on! … This from a guy who’s failed
presidency speaks volumes about his own inability to govern. After all,
wasn’t he elected to based on campaign promises to end perpetual war as
geopolitical strategy, particularly in light of the reality of america’s defacto
bankruptcy and that ‘opposite effect / blowback thing’? Wobama is so full of
s*** as indeed they all are, all three branches of the failed, corrupt u.s.
government and those mini mini black / grey areas that purport to be
patriotic americentric while enriching themselves, only. Anti-americanism
has never been so real and globally popular.] The reason to create a secure,
self-governing Afghanistan, President Obama told his aides last year, was
"so the cancer doesn't spread there."
with that winning plan that worked so swimmingly (as in drowning, in ie.,
debt, death, regional if not wordly anti-american sentiment, etc.)]. In
Kandahar, U.S. military officials hope that a secure green zone, similar to the
area in Baghdad, will make it more difficult for Taliban insurgents to mount
attacks to key buildings in the Afghan city.
7 U.S. troops die in Afghanistan violence (Washington Post) [ I was discussing

my opposition to the contrived conflict in Iraq with a former air force man with
high (top?) security clearance from economic, geopolitical, and humanitarian
perspectives; and further, mentioned I had sought and gotten an appointment to
West Point (I was exempt) so I could go (Vietnam) as an officer rather than a grunt
who were being used as mere cannon fodder as now in Iraq (I also related the fact
that I am thankful, for a multitude of reasons, I changed my mind in light of then
new realities). He replied, quite seriously, that’s what they’re there for… No they
are not! But yes, that is their unequivocal, unforgiveable attitude beyond the b***
s*** (look at cheney-5 deferments, bush-powderpuff duty courtesy of poppy bush,
clinton-draft dodger, wobama-never served, etc.. Just a destructive waste!) The
latest deaths bring to 42 the number of American forces who have died this
month in Afghanistan after July's high of 66.
U.S. officers weary and humbled (Washington Post) [ Indeed they should be; and,
if they are able to make sense of the last 2 decades particularly, they are
certifiably true american crazy, a condition in the u.s. and among it’s war
mongering allies that is found in self-destructive abundance. No joke! And then
there are the crimes / frauds. My position is also that such frauds as the
disappearance of the 360 tons of $100 bills, etc., and similar such frauds should
come right off the top, a direct reduction in their budget allocation particularly in
light of the defacto bankruptcy of the nation! ] How Iraq vets make sense of the
last seven years will affect how america wields its military power [very poorly
indeed!] .
Is the U.S. exporting terrorism? (Washington Post) [The newspaper that never
sleeps…The Washington Post
(P2OG).
military code/protocol (other soldiers have been court-martialed for far less) [
http://www.albertpeia.com/hackworth.htm ] But, you see, this covered up
scenario, compromizing the false facade of far less than a heroe, is exactly what a
criminal (lie of a) nation as america loves and encourages (get everyone's hands
dirty so no-one dares to rectify same, ie., bush, sr., clinton, bush, jr.). That is, "toe
the (corrupt, propagandized) line", become a criminal, or be exposed, prosecuted,
and/or ruined; and, hasn't anyone asked how "wall street" has been "spared the
spotlight" (and even was accorded protective legislation from their criminal
culpability) and focus of inquiry, attention, and prosecution despite being the
primary beneficiaries financial and otherwise of these scams (you know the wall
street motto, "churn and earn"; huge conflicts of interest if not outright fraud)
existence for good.
CIA sees increased threat from al-Qaeda in Yemen (Washington Post) An

agency's rise and fall (Washington Post) [ Gee! I was hoping they were
referring to the cia in the latter article, but no such luck. The cia’s already
covered the bases; creating enemies when and wherever they can, real or
imagined, and all the while, using the booty from their plunder / illegal drug
ops to bribe anyone who would charged with the responsibility of stopping
them. Yes … this is one of those instances where they’re all in cahoots to
everyone’s detriment. This is the way things are in a declining / fallen nation
as defacto bankrupt america most certainly is. ]
Obama speech on Iraq has risks (Washington Post) [ Yeah, very true indeed! The
main one being that he’s supplanting that illegal, unnecessary, nation-
bankrupting war with yet another in Afghanistan which will not be lost on
those who supported his candidacy based on promised end to unnecessary
war policies which have diverted time, attention, ill-afforded resources
including personnel and continue to do so even as defacto bankrupt america
crumbles. ]
In Iraq, a precarious time plagued by 'what ifs' (Washington Post) [ How ‘bout in
america, a precarious time plagued by ‘what ifs’. What if bush et als hadn’t lied
and brought us this (these) illegal war(s). What if america hadn’t been bankrupted
by these pointless, self-defeating, and endless war policies. What if wobama had
delivered on his promises. What if … ] ‘…"The Americans are leaving, and they
didn't solve the problems," said Falah al-Naqib, a Sunni legislator from the
secular Iraqiya bloc. "So far they've failed and left Iraq to other countries."…’
Fla. pastor reconsiders plan on burning Korans (Washington Post) [ Sounds like
a plan! Riiiiight! ] Amid disagreement over whether deal was struck to move
mosque near Ground Zero in exchange for calling off burning, he now says he's
"suspending" event.
‘We are still determined’: U.S. pastor vows to carry out Burn-a-Koran day on Sept
11 despite death threats As Gerald Celente said on the show today, General
Petraeus’ comment that burning the Koran could upset Muslims is the
height of hypocrisy. Did Petraeus ever consider the notion that bombing and
occupying their countries also wouldn’t go down too well? This whole issue
is about manipulating us into a helter-skelter race war as a distraction from
the economic collapse and to rally the country around another war in the
middle east.
NYPD Top Cop: Planned Quran Burning Is “Dangerous” [ I personally wasn’t

going to comment on this and let others draw their own conclusions;
especially, as pointed out by Celente, when america’s been bombing and
killing civilian muslims in droves, based on lies, and even for drug trade pre-
eminence, etc.. After all, it’s not too difficult to dredge up memories of other
historical book-burners, ie., that Austrian house-painter with a brush
mustache, etc.. But really, isn’t this guy jones a neo-con dream come true? I
think he’s just a publicity seeking, mentally unbalanced dummy. He even
looks a bit like john bolton. But, in america, mental unbalance has become
the new normal. ] Police Commissioner Ray Kelly sided with Gen. Petraeus
last night, calling a planned burning of Qurans on the anniversary of Sept.
11, “unwise” and “un-American” during the 9/11 Museum and Memorial’s
fundraising dinner at Cipriani Wall Street in Manhattan Tuesday night.
Karzai calls aide's arrest reminiscent of Soviet times (Washington Post) [ Exactly,
eerily, certainly realistically reminiscent of the former soviet union is the
american union in terms of economics (defacto bankrupt), geopolitics
(intensely hated), and even factual similarity (the final straw), with an
unmistakable modus operandi that gives rise to failure beyond the
propaganda. After all, corruption is as american and pervise as apple pizza
pies and mother of hoods, etc. ]
Army supervisor was worried about leak suspect's mental health, attorney says
(Washington Post) [ One cannot help but hearken back to a frequently
deployed ‘government at its worst’ strategy, ie., Ellsberg/Pentagon papers,
former soviet union, etc., in attempting to discredit such informants, etc.,
which of course is a telltale sign of america’s similar fate / decline / fall. ]
Karzai urges Afghans not to panic as bank withdrawals accelerate (Post,

September 2, 2010; 10:20 PM)
After Iraq war, uncertainty and seemingly mixed messages (Post, September
2, 2010; 4:26 PM)
Nervous Afghans pull money from Kabul Bank, raising fears (Post,
September 2, 2010)
Army supervisor was worried about leak suspect's mental health, attorney
says (Post, September 1, 2010; 11:16 PM)
Obama prods Mideast leaders (Washington Post ) [ The real question is … who is
going to prod defacto bankrupt, war crimes nation america … on peace, that
is. Then there’s that ‘oh, it’s just war crimes, illegal nuke-toting israel …
laws, rules, un resolutions, etc., don’t apply to them factor and the
concomitant skepticism attendant thereto. ] Israeli Prime Minister Netanyahu
and Palestinian President Abbas are set to open direct peace talks.
Pentagon expanding 3 bases in Afghanistan 4 U.S. soldiers killed | Karzai says

he helped aide Al-Qaeda fighters take a limited role in insurgency
(Washington Post) [ Sounds like a grand ol’ plan like the many we’ve heard
before. After all, once you’re defacto bankrupt as america certainly is, more
or less bankrupt according to u.s. group think is a distinction without a
significant difference from their failed perspective ] Analysis of U.S. reports
posted by WikiLeaks underscores extent to which Osama bin Laden and his
network have become invisible figures.
NATO says new contracting rules will help eliminate Afghan corruption
(Washington Post) [ Riiiiight! Well, that sounds like a plan … eliminate those
no-bid contracts to those american palm-greasers … did I say american? By
george, I think I did! ]
tiger.
Gates starts to outline cuts to save $100 billion for defense (Washington Post )
[ Oooooh … sounds like a plan! No, not gates’ only slightly less bankrupt
nation plan over 5 years which bearly covers the interest on the trillion plus
for the wars; but rather, Karzai’s plan for u.s. companies extended to u.s.
presence, period! ] Defense Secretary Robert Gates on Tuesday said the
Pentagon must get "more bang for its buck and shift its focus to the
military's needs for the future." Karzai wants private security firms out of
Afghanistan: KARZAI WANTS COMPANIES OUT U.S. calls 4-month deadline
'very challenging' (Washington Post) One too many civilian killed. Maybe
they figured out that american non-strategy employing the Hegelian
methodology of creating problems that American firms can solve. Doomed
to failure, they eventually catch on. The bushes were famed for same but
wobama has foolishly been no slouch in this regard.
Afghans still see U.S. as bad guy [Riiiiight! Sounds like a plan … winning hearts
and minds throughout the world … great for exports also as such ‘won hearts
and minds’ just love to buy american.] American, NATO forces retain blame for
civilian deaths despite spike from insurgent violence.
with that winning plan that worked so swimmingly (as in drowning, in ie., debt,
death, regional if not wordly anti-american sentiment, etc.)]. In Kandahar, U.S.
military officials hope that a secure green zone, similar to the area in Baghdad,
will make it more difficult for Taliban insurgents to mount attacks to key buildings
in the Afghan city.
positive sense for this increasing small and troubled world. ] Just 42 sites across
Asia, ranging from temperate forests to tropical grasslands, are key to the
survival of one of the world's most iconic, and feared, wild cats - the tiger.
Military toughest on Obama (Washington Post) [ Almost hard to believe since
wobama foolishly, in contravention of campaign pledges and sound judgment,
has given the ‘sullen mullen militants’, also contrary to reason, everything they’ve
asked for and more; kind of a dumbya bush in disguise (but I believe Woodward).
Credit must be given to the ‘three officers - retired Lt. Gen. Karl W. Eikenberry,
retired Gen. James L. Jones and Lt. Gen. Douglas Lute, the generals tapped for
key positions that are traditionally filled by civilians’, for their astute but ignored
analysis and courage for standing up to the darkly dysfunctional sullen
mullenights who got their ill-found way. Worthless dollars to donuts, President
General Eisenhower would have called this ill-fated debacle what it is; viz., a
military industrial complex welfare program doomed to failure, and, as for the
heroin trade operatives, they’d all be in the ‘hootsgow’. ) ] Bob Woodward's new
book presents three generals in civilian posts as his most skeptical critics.
Large U.S. paramilitary presence in Afghanistan (Washington Post) [ Yeah …

defacto bankrupt america can really afford it … you know, to protect (and
participate in) their resurgent heroin trade to the benefit of the few ‘insiders’. ]
Existence of covert CIA teams, operating near the Pakistan border, is revealed in
a new book by Bob Woodward and documents released by WikiLeaks.
Secretary of stand-up: Corny Washington jokes? Robert Gates has a million of

'em. (Washington Post) [ Could it be that’s because he is a joke. Certainly his
prognosticating continues to be … a joke. Aw, well, what the heck, he’s an affable
killer from the CIA and he has resuscitated the heroin trade in Afghanistan, after
all … eh … cut him some slack … riiiiight! ]
Obama reaches out to Iran with multiple messages (Washington Post) [ This is
closer to the correct approach, conciliatory, especially in light of israel’s
summarily and haughtily dismissing even the suggestion of or adherence to the
Non-Proliferation Treaty as not in israel’s interest, the war crimes, violation of u.n.
resolutions, flotilla murders, sinking of uss liberty/sailor murders, etc.. However,
truth be told, I was dismayed and somewhat disheartened by Mahmoud
Ahmadinejad’s confusion ( evincing a lack of understanding ) and hope the same
a slip of tongue and correct him as follows: ‘9-11 was that ‘pearl harbor event’
heralded and sought by the neo-cons (don’t forget, there were orders for NORAD
to stand down that day, symmetrical implosion, 9-11 truth, etc.) that facilitated a
huge abrogation of rights (ie., Patriot Act, etc.), a diversion of funds to the military
industrial complex among other lunatics, ie., cia, nsa, etc., but was not intended
to nor did it help the u.s. economy; but helping the militant zionist israeli regime
was indeed a goal and the cheers of the mossad agents on the banks of the
Hudson in Weehawken, n.j. viewing the burning towers are testament to the truth
of that part of his statement. ]
Obama focuses on human rights (Washington Post) At U.N., president urges

Afghanistan: Afghan ally vital to U.S. despite graft allegations (Washington Post)
[ Wow! As if we didn’t see that rationalization coming in light of the fact that they
learned their pervasively corrupt american lessons well; even beyond america’s
reinvigoration of the heroin trade which the Taliban had all but eradicated. ]
A quandary in Afghan corruption fight (Washington Post) [ Come on! Is this

some cruel joke? Corruption, lawlessness is now synonomous with america.
Afghans question U.S.-style corruption/capitalism (Washington Post) [ As indeed
they should inasmuch as the same is neither capitalism nor american style in the
bank's headquarters Wednesday was far from that modern ideal.U.S.-backed
investigative teams have assembled evidence of rampant corruption in
Afghanistan, and the findings have had unintended consequences.
Obama focuses on human rights (Washington Post) At U.N., president urges

U.S. pressures Iranian officials (Washington Post) [ Boy! You just can’t make
this stuff up! Defacto bankrupt america (and their terrorist client state israel) has
engaged in war crimes, including murders of civilians, among other literal killing,
raping and plundering of nations, based literally in some instances on lies, etc.,
violating international laws, u.n. resolutions (ie., 242, 338, etc.), torture,
kidnapping/torture and their talking about … Iran? What parallel universe do they
purport to reside in …? I’d say a suitable place called he*l. ]The Obama
administration is stepping up pressure on Iran with a fresh set of penalties
against eight senior officials for alleged human rights abuses.
U.S. struggles to counter Taliban's propaganda (Washington Post)

[ Propaganda? Really? Come on! The Taliban doesn’t need propaganda, the
facts will do just fine! ]Militant group grows more deft at portraying the
West as on the brink of defeat, shoring up support on home front for an
increasingly unpopular war. [Photos show US soldiers posing with Afghan
corpses – Nothing like those publicity photos for winning ‘hearts and minds’
in Afghanistan and throughout the world, and just before committing suicide
themselves, and lending creedence to the proscription against illegal drug
use as causative of strange, savage, illegal, bizarre, etc., behavior …
consistent with that notoriously infamous query, ‘What were they smoking?’.
How pathetic war-mongering, defacto bankrupt america has become! (AP)
Dennis Ross acts as a key channel between White House and Israeli
government (Washington Post) [ Oooooh! Key channel. Sounds
impressive. So official and authoritative! Time to impose a solution
consistent with prior accords, u.s. resolutions, international law, etc.. White
House offers israel a carrot for peace talks (Washington Post) [ Oh come
on! This familiar dog and pony show is getting old fast while america’s dying
and america could in a day precipitate a peace consistent with international
law, prior u.s. resolutions (i.e., 242, 338, etc.), (Oslo) accords, civilized
behavior, etc., despite and in contravention of israel’s militant intransigence,
to stem the hemorrhaging of american blood and treasure for israel’s sake. ]
Middle East: Arsonists set fire to mosque in West Bank town (Washington
Post) [ Eh, … what the heck … they’re loving america-aligned terrorists …
and they’re jewish … the laws don’t apply to them … Yeah, that’s about it !
… In a nutshell … and perfect timing to sabotage the ‘peace talks’. ] ]
Connecticut, California join probe of Ally (Washington Post) [I’d be much more
impressed if they initiated a probe of more readily discernible criminal
offenses in violation of the RICO Act http://albertpeia.com Frauds/Liars
(sic-lawyers)Covering Up for Other Frauds/Liars (sic-lawyers). In Productive
Societies as China, Japan, etc., Fraudulent Liars (sic-lawyers) and the
Fraudulent u.s. System They're a Part of Are Unheard Of/Non-existent. List of
Files Regarding Filed Attorney Grievance Against Fraud coan et als Or Here
For A Clearer View Of Filed Grievance Complaint, Response, Exhibits, and
Related RICO Filings Note the Committee of Frauds/Liars (sic-lawyers).
his life. How Pathetic! http://albertpeia.com/fbiofficela91310 ] Justice: FBI
improperly opened probes (Washington Post) [ I just hope they’re as
zealous (in probing readily discernible crime) with regard to my RICO matters
and the corruption in the (judicial / legal) process since, in the final analysis, it
will have been the corruption within that will have brought the nation down
irrevocably and totally ] .
9-13-
10

Dear Sir:
I enclose herewith 3 copies of the within DVD rom autorun disk (which will open
in your computer’s browser) as per your office’s request as made this day (the
disk and contents have been scanned by Avast, McAfee, and Norton which I’ve
installed on my computer to prevent viral attacks / infection and are without
threat). I also include a copy of the DVD as filed with the subject court as
referenced therein (which files are also included on the aforesaid 3 disks in a
separate folder named ‘112208opocoan’)…
provides a civil remedy, including treble damages and attorney fees, as an
incentive for private prosecution of said claims probably owing to the fact that
the USDOJ seems somewhat overwhelmed and in need of such assistance given
the seriousness and prevalence of said violations of law which have a corrupting
influence on the process, and which corruption is pervasive). A grievance
complaint against Coan was also filed concurrently with the subject action and
held in abeyance pending resolution of the action which was illegally dismissed
without any supporting law and in contravention of the Order of The Honorable
Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the
horizontal rule are the referenced documents as filed. (Owing to the damage to
the financial interests of both the U.S. and the District of Congresswoman
Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False
Claims Act probably would apply and I would absent resolution seek to refer the
within to a firm with expertise in that area of the law with which I am not familiar).
The document in 5 pages under penalty of perjury I was asked to forward to the
FBI office in New Haven is probably the best and most concise summary of the
case RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages) [

(apparent but typical problem with my mail) along with my response thereto is
included on the 3 disks as fbicorrespondencereyes.htm . With regard to the
calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA
office and I was referred to the Long Beach, CA office where I personally met with
FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the
money laundering which he confirmed as indicative of same (he was transferred
from said office within approximately a month of said meeting and his location
was not disclosed to me upon inquiry). The matter was assigned to FBI Agent
Ron Barndollar and we remained in touch for in excess of a decade until he
abruptly retired (our last conversation prior to his retirement related to the case
and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for
the mob to which he registered disbelief and requested I prove it, which I did – he
served 12 years in prison, aggravated assault/manslaughter? – and no, there is
no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).
In contradistinction to the statement in said correspondence, there is a plethora

of information including evidence supporting the claims set forth in the RICO
VERIFIED COMPLAINT (see infra). Such includes and as set forth in the case,
inter alia,
1. A judgment had been entered in my favor in the case, United States District
Court Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth
approximately now in excess of $300,000 remains unaccounted for and
which could be used for payment to creditors, Los Angeles, etc..
2. Counsel Robert Sullivan on my behalf documented by way of certification
upon investigation that Alan Shiff, USBCJ, had falsely stated a dismissal
upon which false statement he predicated a retaliatory and spurious
contempt proceeding against me causing substantial damage, and for
which he sought Judicial Notice of those and related proceedings as did I
in some of my filings.
3. The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to
Defendant Coan’s failure to file anything whatsoever by the court’s
deadline causing creditors and me substantial damages: [ Shiff Order of
Dismissal With Prejudice on Coan’s Failure to File Page 1
Page 2 ]
4. Defendant Coan had filed an action against me to prevent me from suing
him which necessitated me to fly to Connecticut for a hearing before The
Honorable Robert N. Chatigny, Chief Judge, USDC, District of Connecticut,
who denied Coan’s requested relief as to Coan but precluded my action
against Shiff (although there is no immunity, judicial or otherwise, for
criminal acts, ie., fraud connected with a case under Title 11, USC, etc.) . [
transcript in pertinent part - crossexamofcoanbypeia.pdf ]
assigned the RICO case despite the conflict of interest in light of hundreds
of thousands of dollars of illegal (drug) money being laundered through the
Trump casinos by the RICO defendants, and despite my motion to recuse
her which motion she heard herself and denied, and U.S. Trustee Hugh
Leonard with whom I met personally refused to join or file a separate
motion to recuse and not long thereafter left said office for private practice
at Cole, Shotz, et als on retainer with the RICO defendants as his primary
client.
6. Probative and evidentiary documents, affidavits, exhibits, including those
turned over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to
Assistant U.S. Attorney Jonathan Lacey with whom I met personally at the
U.S. Attorney’s Office in Newark, N.J., at which time Samuel Alito was U.S.
Attorney, and went over said documents and their probative value with
him. Within approximately a month thereafter upon inquiry I was told that
Jonathon Lacey was no longer with the office, that the file/documents
could not be located, and that there was no further information available
concerning contacting him or his location. I thereupon delivered by hand,
copies of said documents to the office of then U.S. Attorney Alito,
addressed to him, with assurance they would go directly to him. In addition
to being inept [ I looked in on the one mob case he had brought, bungled,
lost (accidently on purpose?) since I was suing some mob-connected
under RICO and the court (I had known / previously met outside of court
the judge Ackerman through a client) was absolute bedlam and a total joke
since incompetent corrupt Alito brought in all 20 mob defendants (rather
than prosecute one or a few to flip them first) who feigning illness had
beds/cots in the courtroom along with their moans during testimony and
had the jury in stitches. As much as I hate the mob, it truly was funny, if not
so tragic.], Alito is also corrupt (and maybe corrupt because he is inept).
After a reasonable (but still rather short) time I called to determine the
status and was told that Alito was no longer with the Office of the U.S.
Attorney, that he was (appointed) a federal judge, and that neither the
documents nor any file or record of same could be located. Alito did parley
the same / cover-up into quid pro quo direct lifetime appointment to the
Court of Appeals, 3rd circuit, despite the absence of judicial experience or
successful tenure as U.S. Attorney (Maryanne Trump Barry as well). This is
the same Sam Alito that now sits on the purported highest court in the
land. The real application of the illegal rule ‘don’t ask, don’t tell’.
There is applicable insurance / surety coverage and neither LA, nor creditors,
nor I should continue to have been damaged by this brazened corrupt and
illegal scenario, which should be resolved in accordance with the meaningful
rules of law apposite thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) ******** (cell phone)
nefarious sense (
) ]:


# 3 Germany: 6,507,394
… ]
White House offers israel a carrot for peace talks (Washington Post) [ Oh come
on! This dog and pony show is getting old fast while america’s dying and
america could in a day precipitate a peace consistent with international law,
prior u.n. resolutions (i.e., 242, 338, etc.), (Oslo) accords, civilized behavior,
etc., despite and in contravention of israel’s militant intransigence, to stem
the hemorrhaging of american blood and treasure for israel’s sake. ]
Airstrike probe finds poor coordination between Pakistan, U.S. (Washington Post)
[ Riiiiight! That coordination thing underlying those unfriendly-fire incidents and
civilian deaths wherever american storm troopers happen to be … Eureka! And all
this while everyone was thinking that the same was just typical americana! ]
U.S. funds go to Taliban, warlords, report finds (Washington Post) [ Well, defacto
bankrupt america can afford it; after all, how much more defacto bankrupt can the
nation get? Well, then again, despite the headline, a lot of those hundreds of
billions are finding their way back into american hands, albeit dirty ones, like, for
example the 360 tons of hundred dollar bills flown into Iraq and still unaccounted
for, etc.. ]Military has minimal knowledge of and virtually no control over
thousands of Afghans it pays to guard operating bases, bipartisan report finds.


sustenance.

and 2012). ]
the dollar lower.
Dollar set for sharp decline, Goldman forecasts The dollar will embark on a sharp
decline over the next 12 months, Goldman Sachs forecast on Wednesday, as
policy makers in Washington look poised to press the trigger on another
round of printing money.

(Washington Post ) Sounds like a plan! Almost surreal was the appearance
of gates on failed network ‘news’ show to shill the non-strategy of draw
down (of troops) linked to success. What success? Just being there and
every day they’re there is unequivocally abject failure. Celebritology
Weekend: Angelina Jolie biography arrives(Washington Post ) I usually don’t
weigh in on entertainment news, but this headline concerning what appears
to be a disparaging, and quite selectively so, purported biography of
Angelina Jolie is very disheartening when you consider the numerous
instances of failed leadership at nearly all very high levels of government
having so detrimental an impact on the world, that morton deems his time
appropriate to an actress who has actually tried to do good things (U.N.,
etc.) without having to. Indeed, even her latest film ‘Salt’ (spectacular by any
standard as is her performance – there are at least 2 winning sequels there
with 4 the max and stretching it owing to age – she puts all, and I mean all
the ‘Bonds’ to shame) had an important message in terms of the damage to
this nation by a seemingly endless, nation-bankrupting, anti-american (war
criminal israelis already, and quite correctly, globally hated) sentiment
producing war strategy that is neither strategy nor reasonably consistent
with any positive american goal / objective; but rather is such a debacle and
folly that the same could very well be one that only an enemy of defacto
bankrupt america could hatch and for the reasoning set forth in the well-
written / directed film. She astutely observed and talked about the
synchronicity of the film as juxtaposed to recent events revealing that she
is wiser than most in Washington.
Afghanistan: U.S. and Afghans at odds over Kabul Bank reform (Washington
Post) [ Wow! Given defacto bankrupt america’s continued and covered-up
financial debacle, any Afghan resistance to the american model / modus
operandi is tantamount to ‘proof of life (rationality)’. ]
Memoir: Bush debated dropping Cheney (Washington Post) [ More unequivocal

proof that moron dumbya bush couldn’t, like wobama and recent
predecessors, make the right decision even if their presidencies and the
nation’s survival depended on it. Heck uv a job brownie, bushie, cheney,
wobamie, etc…. Keep up those nation bankrupting, attention-diverting wars
you knucklehead war criminals, you. ]
U.S. operations in Kandahar push out Taliban (Washington Post) [ Break out the
bubbly, victory at last! Riiiiight! Reality … defacto bankrupt american forces
moved in, Taliban moved out. ]
Global impact of U.S. elections Foreign Policy: A Plan B for Obama

(Washington Post) [ Plan B? Come on! … Either he’s on plan z or has no
plan at all! ] World capitals brace for a new political order in Washington, as
policymakers and analysts tried to assess the impact on foreign policy of a
new Republican-led U.S. House. Foreign Policy: The China election
[ China election? Don’t make me laugh! Almost as big a joke as american
elections! (I realize the article wasn’t about an ‘election’ (hmm … riiiiight) in
China per se, but wanted to make the albeit indirect point.)]
Baltimore Co. Independent Examiner | Congress voted to extend funding for
the war in Afghanistan by an additional $59 billion late on Tuesday.
Tony Montana, to To Mon el Swahili and recut ‘Scarface’ to reflect an
him fragged.
Obama reminds veterans he's beginning war's end (Washington Post) Sounds
like a plan! I mean, after all you must have a beginning before you have an
end. Yeah, there’s a certain ineluctable logic to that; a certain ‘ring’ to it! Like
full circuit ‘b*** s***!
Karzai officials on CIA payroll (Washington Post) [Riiiiight! The roster of allies …
love of america breakin’ out all over the region … boy oh boy … talk about
creating your own boondoggles … well, they can afford it. After all, it’s only
taxpayer money and america’s already defacto bankrupt. Then again, they have
the requisite licenses; viz., to kill, to steal, to distribute illegal drugs, etc.. Whew!
Glad they didn’t act without the requisite licensure.]

beyond control...
personal courageNSA Has Gotten So Big, Area Around It Has 112 Acres Of
Parking Spaces

Trends ]

Obama as a Marxist.
February 11, 2009
investigation.

Iran struggling to contain computer virus (Washington Post) Iran suspects that a
foreign organization or nation designed the "Stuxnet" computer worm.
[ Look westward (plus israel) , but not homeward, Angel … Riiiiight! Riiiiight!
Riiiiight! Stuxnet False Flag Launched For Web Takeover Israel and the
United States have emerged as the prime suspects behind the Stuxnet worm
attack, which has infected the Iranian nuclear plant at Bushehr, following the
discovery that a “wealthy group or nation” must have been responsible for
the malware assault. Drudgereport: WORM HITS IRAN NUKE PLANT...
...new versions of virus spreading Pentagon silent... ]
'We need to trust each other' (Washington Post ) [ Yeah! That’s leader of nations
Turkey ‘talking turkey’ while the israelis, with a plethora of illegal nukes,
casually as if by some unbenounced entitlement, say that they won’t sign
the Non-proliferation Treaty because it’s not in their interest to do so. You
can’t make this stuff up; yet, there’s bewilderment as to why the u.s., mid-
east, and world are in such a deplorable and chaotic state. ]A23 (Post)
...with the United States, Israel and Iran. Excerpts: Q...is also party to the
Non-Proliferation...

Palestinians, unlike the lawless israelis are cognizant of u.n. resolutions, prior
accords, international law, etc., in their proposal. ] Israeli prime minister offers
conditional settlements freeze (Washington Post ) [ Déjà vu all over again? Now
why is there a familiar ring to this story … maybe ‘cause of the ‘been there done
that ‘ reality. It’s really quite incredible since israel’s in violation of u.n.
resolutions (242, 338, etc.), international law, nuclear proliferation treaty, a drain
on the the u.s. globally / domestically, etc.. The u.s. / international community
should impose a resolution. ]
Israel: Defining 'Jewish state': For many, term has different meanings
(Washington Post) [ Well ain’t that the truth! As per Forrestal’s warning (infra), it
meant new york, pennsylvania, and California … for the greedy zionist israelis it
means anything they want it to mean, borders, laws, u.n. resolutions, civilized
behavior, etc., be damned! ]
Clinton wraps up Israeli, Palestinian talks - for now (Washington Post) [ That’s a
wrap (Hollywood speak), or just a lot of crap (reality). Well some celluloid
facetime (hill, I said celluloid, not cellulite), appearance of doing something (not).
U.S. urges Arab states to drop israel nuclear treaty demand Reuters Oooooh!
mother, father, grandmother, and stepfather. ] RAMALLAH, WEST BANK -
Secretary of State Hillary Rodham Clinton on Thursday wrapped up three days of
intense Middle East diplomacy that produced good atmospherics but no sign that
an impasse over Israeli settlement construction has been resolved. (Alex
Brandon - AP)

come on! An israeli probe of an israeli massacre of civilians. Time for israel to
pay; for illegal nukes, for violations of international law, for continued violations
of u.n. resolutions, for provocations as pretexts to sabotage peace talks, and on
and on ad nauseum. Why does america among other nations feel compelled to
sacrifice themselves for the sake of a global criminal nation with an insatiable
greed and blood-thirst as israel?

commandos, the elite of the elites, rappelled to the deck of a Turkish ship carrying
humanitarian relief supplies to the 1.5 million prisoners in the Gaza concentration camp.
Bombs more lethal than in Dec. 25 attempt (Washington Post) [ Truth be told,
there’s no shortage of pre-election skepticism … ] The package bombs
discovered on cargo flights last week contained far more explosive material
than the device that the alleged underwear bomber planned to use last
Christmas to down a Detroit-bound jetliner, officials said. [Did Obama Order
British Authorities To Find Non-Existent Ink Bomb? Paul Joseph Watson |
Only after President’s speech did East Midlands security officials reverse
earlier announcement that suspicious device was a dud..
The Cult Of Obama Crashes And Burns Steve Watson | The hope has gone, the
change never came – now people are just pissed off.
Toner Bomb Plot Used to Empower CIA Kurt Nimmo | Absurd toner bomb plot
provides excuse to rationalize the global reach of the CIA into Arabian
peninsula.
CIA Stooge Awlaki Prime Suspect Behind Plane Bomb Plot Paul Joseph Watson |
Evidence screams “false flag” as authorities seek to crush resistance against
invasive airport security measures, while Obama exploits event for domestic and
geopolitical gain.
Israel Knew About Toner Bomb Plot Before Devices Were Found Transportation
minister hints state knew about mail terror plot before it was publicly
revealed Friday. ‘Since Thursday Israeli representatives have been securing
shipments to Israel from airports worldwide,’ he says.
Did Obama Order British Authorities To Find Non-Existent Ink Bomb? After
having examined the suspicious ink toner device for six hours and found it to be
a dud, bomb experts at East Midlands Airport only reversed their decision after
being ordered to re-inspect the package by US authorities following President
Obama’s Friday afternoon speech in which he claimed that the devices did in fact
contain explosives.
Toner Bomb Plot Used to Empower CIA In addition to adding new urgency and a
fresh dose of hysteria to the flagging war on manufactured terror, the toner bomb
plot has provided an excuse to rationalize the global reach of the CIA.
Yemen Insists No Packages Sent 48 Hours Prior to Toner Bomb Hysteria Kurt
Nimmo | As usual, the government has not done a very good job of making the
latest al-CIA-duh plot credible.

contrived a fake terror scare on the eve of the mid-term elections in an effort to
subdue the rampaging political appetite for anti-big government candidates that
threatens to sweep aside establishment incumbents next week. ]
Obama: Suspicious packages are a 'credible terrorist threat' (Washington Post)

[October suprprise anyone … still October … trick or treat … there are skeptics …
then there are some who’ll say … just jewish synagogues, no big deal … nothing
of strategic value … healthy dose of skepticism … Obama ‘Fake Terror’ Alert
Story Hits #1 on Google Aaron Dykes Infowars.com October 29, 2010 Efforts to
warn the population that the Obama Administration, like the Bush Administration
before it, has engaged in issuing fake terror alerts has gone viral, with the search
term “fake terror” reaching #1 on Google Trends. It is yet another success in the
Infowar, initiated on the Alex Jones Show. As we are just days out from the 2010
midterm elections, voters must realize that the establishment has willfully
engaged in hyping up false alerts to scare the public into believing that we are
under siege by potential terrorist acts at all moments. Various “officials” have
been warning that an attack is likely to occur for weeks now, and it is no surprise
to see the Obama Administration trying to use the fear to its advantage. Recall
that Obama advisor and former top Clinton official, Robert Shapiro, alluded to the
idea that only a terror attack could save Obama’s presidency earlier in the year.
“The bottom line here is that Americans don’t believe in President

Obama’s leadership,” said Shapiro, adding, “He has to find some
way between now and November of demonstrating that he is a leader
who can command confidence and, short of a 9/11 event or an
Oklahoma City bombing, I can’t think of how he could do that.”
Read the original story by Paul Joseph Watson here, as it has been updated.
The general scare of the fake terror alert is all the more alarming, as President
Obama has gone on to contradict announcements from his own
administration, claiming that the suspicious package “did apparently
contain explosive material” in a press conference. This, after it was already
admitted the suspicious package, which originated from the UK, was
harmless and contained no explosives Obama Issues Fake
Terror Alert On Eve Of Elections Paul Joseph Watson | Establishment media
fearmongers about “mail bomb plot” despite no bombs being found.
Corporate Media On High Alert Over “Manipulated” Toner Cartridge On UK
Plane Kurt Nimmo | Officialdom and authorities jack up the scary pre-election
rhetoric ]
51 Iraqi worshipers, 7 troops killed in church siege (Washington Post) [ Yes, and
even more sounds of silence … which of course smells like napalm in the
morning … you know … that victory thing. ] Suicide bomber in Iraq kills at
least 26 people, many of them police (Washington Post) [ Ah, yes … those
sounds of silence … the birthing of a new american-style democracy … like
napalm in the morning … smells like victory … (lucky for them bush /
bushies / neo-cons lied about those wmd’s) … and all for the sake of israel
and the military industrial complex. ]
Election outcome may complicate Obama's foreign policy (Washington Post)

[ Wow! That’s all this country needs … a more self-destructive zionist-leaning
foreign policy which, as obvious to the rest of the world, ignores israel’s
transgressions (ie., violations of international law, u.n. resolutions, nuclear non-
proliferation treaty, etc.) while focusing on geopolitically detrimental or
otherwise, non-events. I see an already zionist-leaning foreign policy with
wobama and co. which begs the question … What foreign policy? James
Forrestal made the point infra: ]
Families remember USS Cole 10 years later (Washington Post) [ If only Americans
remembered the uss liberty, they’d understand the israeli albatross strangling
and bleeding the life out of america as they have since that fateful day.] In the
Middle East, it's still 1947 (Washington Post) [ Indeed it should be! Among the few
times the cia was correct, and they’ve been trying to put square pegs in round
holes ever since, to america’s substantial detriment. I wonder what what those
american sailors of the US Liberty killed by the israelis would say? USS Liberty
Survivor Threatened by Unknown Israeli This is what happened to Phillip F.
Tourney, decorated war hero and survivor of Israel’s premeditated attack on the
USS Liberty 43 years ago. On the evening of Aug. 6, Tourney was verbally
threatened by a foreign national claiming to work for the government of israel. As
for the purported disdain shown for war mongerer netanayahu, if only wobama’s
actions matched his words, the same would represent a major plus for him and
the nation of america, so sorely in need of pluses whether the same be budgetary
or economic or geopolitical. In fact, for America to abrogate 1948 would
positive sense. ]


WORLD!
The Obama Deception Number 1 on U.S. Google Trends

most popular feature films ‘The Obama Deception’ has been censored
following a spur of the moment campaign to elevate the movie’s title to the
top of the major internet search engines.

be complete (but will be compared with earlier version and replaced with
same if incomplete)
Censorship Alert: Obama Deception Illegally Removed from You Tube Made to
look like a hack, Thought Police Block Mega-Viral Anti-Establishment
Documentary After More than a Year of Dominating Viewcounts, Ranking #1
in Search Engines and Waking Up Millions to the False Left-Right Paradigm
Perpetuated by Obama.
Public confidence in Obama reaches new low (Washington Post). Six in 10

Americans lack faith in Obama and hold lower esteem for members of
Congress, according to the latest Washington Post-ABC News poll. Such
stats as this tend to typify scenarios as this where you break every
significant campaign promise that got you elected, from endless war (ie.,
Afghanistan, etc.) to not prosecuting the frauds on wall street, and the
growing realization of ‘typical’: Public confidence in Obama reaches new low
(Washington Post) Six in 10 Americans lack faith in Obama and hold lower
esteem for members of Congress, according to the latest Washington Post-
ABC News poll. Such stats as this tend to typify scenarios as this where you
break every significant campaign promise that got you elected, from
endless war (ie., Afghanistan, etc.) to not prosecuting the frauds on wall
street, and the growing realization of ‘typical’:
But still it’s ‘hands off fraudulent wall street’ to theirs, the nation’s, and the
world’s detriment. Firms subpoenaed in attempt to regain Fannie, Freddie
losses (Washington Post). But there’s a reason:
PANTHER CASE... ‘In emotional and personal testimony, an ex-Justice
official who quit over the handling of a voter intimidation case against the
New Black Panther Party accused his former employer of instructing
attorneys in the civil rights division to ignore cases that involve black
defendants and white victims ...’ US v. AZ... Cases against Wall Street lag
despite Holder’s vows to target financial fraud Washington Post | Obama has
promised to hold Wall Street accountable for the meltdown. ):
=PL&index=0&playnext=1 – well worth a look. [ The Obama Deception
Number 1 on U.S. Google Trends ]
While boner and barton are indeed jokes / vegetables that bespeak the single-
digit approval rate for congress, obama’s failure to deliver on promises with
as well, endless war spending despite defacto bankruptcy of the nation and
a watered down nothing financial regulation bill for talking points but little
substance, make him as big a joker. This well researched / produced video
tells the real story : http://www.youtube.com/watch?
=PL&index=0&playnext=1 ‘THE OBAMA DECEPTION’ – well worth the view.
[ The Obama Deception Number 1 on U.S. Google Trends ]
most popular feature films ‘The Obama Deception’ has been censored following a
spur of the moment campaign to elevate the movie’s title to the top of the major
internet search engines. In light of this development, I provide an archived site
version which appears to be complete (but will be compared with earlier version
and replaced with same if incomplete)

Judges rule without title, lenders can't foreclose (Washington Post) [ Rules of
law? I didn’t think they cared. That’s certainly the direct experience I’ve had with
the pervasively corrupt american legal / judicial system (along with the other two
October 5,
2010 (*see infra)

Dear Sir:


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) ******* (cell phone)
----------
-----

Status: Delivered
Track and Confirm
Detailed Results:
90052
----
Signed: ___________________________________
Albert L. Peia
continued debacle and bears fault with the other zionist war mongers.
-- a price that now includes more than 4,400 U.S. dead. ) On Thanksgiving
nefarious sense (
) ]:


# 3 Germany: 6,507,394
… ]
Goldman agrees to pay $550M (Washington Post) My own skepticism based on

the disparate numbers (the size of the frauds compared to the relatively
small fine) and as set forth in the initial reactions / headlines that
immediately follow has been allayed somewhat by an interview on NBR with
former SEC head Ruder who explained the very narrow scope of the
settlement which in no way shelters goldman from the huge frauds they
have perpetrated. So long as this is true in fact as well as law and in
application, the SEC deserves praise as has been so under the auspices of
‘Mother Mary’ who appears to have the gonads lacking in prior SEC heads.
and disgorgement imposed.
Iran connects U.S./israel to deadly blasts I believe Iran!
Zahedan.

Stepped-up efforts fail to stem drug money (Washington Post) [ Come on! Wake
up! That’s american, yes american big business. The stuff that the war in
Afghanistan is made of; viz., ie., heroin, etc.. ]Stashing cash in spare tires, engine
transmissions and truckloads of baby diapers, couriers for Mexican drug cartels
are moving tens of billions of dollars in profits south across the border each year,
a river of dirty money that has overwhelmed U.S. and Mexican customs agents.
Carlyle-owned toy supplier files for bankruptcy (Washington Post) [ What is a

bush-involved company of paper (leveraged instruments, etc.) pushers
doing with any company doing business in the u.s. or elsewhere for that
matter. The bushes are vegetables who really can’t do anything well, except
maybe, war, war crimes, fraud, illegal drug deals (Iran contra, etc.,
http://albertpeia.com/CIAAgentAffidavit1.jpg ) ]
State Dept. faces skyrocketing costs as it prepares to expand role in Iraq:

Waning resources could endanger security gains, lawmakers are told
(Washington Post) [ The ‘new never ending story’! america’s defacto
bankrupt! Dat’s the story, jerry! What gains? Iraq’s destroyed. Iraq’s
‘covered’ in depleted uranium. The people are devastated. america’s defacto
bankrupt. Come on! We’re getting close to biblical stuff here! There’s just no
excuse for this compounding of war crimes committed by the u.s. and
‘friends’.]
Mideast Digest: Iran's Ahmadinejad calls for regional solution to Afghan crisis
(Washington Post) And appropriately so, as leader of a nation in the region as
opposed to invading nations from outside the region (particularly as one targeted
by assassins the likely assigns of those outside the region).
GOP chairman: Afghan 'war of Obama's choosing' (AP) - Republican chairman

Michael Steele drew criticism from within his own party Friday, including
calls to resign, after saying the 9-year-old commitment of U.S. troops to
Afghanistan was a mistaken ... [Steele is quite right and wobama and war
facilitators deserve criticism; not Steele.]
Judge: 'Don't ask, don't tell' is unconstitutional (Washington Post) [ Well, we all
know that judge walker is alledgedly a homo, so the question here is whether
judge phillips is a lesbian… just kidding! Not to slight homosexuals but to
emphasize judicial bias / corruption which is pervasive in america and I’ve
observed, experienced, and have been substantially damaged by pervasive and
systemic corruption in the american judicial process which has become more
blatant and which justifies the abolition of these costly, corrupt lifetime
appointment / bureaucracies. The fact is that ‘don’t ask, don’t tell’ is the policy
throughout the pervasively corrupt federal system which is indeed as illegal as it
is unconstitutional! (
ury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ). ]
Ex-Justice official: CIA may have exceeded limits (Washington Post) Wee
doggies! This sounds like the stuff that SNL Weekend Update ‘Really’ skits
are made of; also fitting into that list of queries as, ‘Is the Pope Catholic?’,
‘Do bears **** in the woods?’, etc.. Come on! Wake up! This is the kind of
complicit cover-up / corruption found betwixt and between all three
branches of the u.s. government leading ineluctably to america’s current
decline and to which I’ve attested under penalty of perjury in the context of
the RICO litigation [
perjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ].

attorney.
Posted by: mnjam
-----------------------

----------------------------


the CIA has has in effect carried out a “coup” against the US government,
and the intelligence agency needs to be “taken out.” I also personally
believe there has been a defacto coup d’etat which has manifested in
various substantial, blatant, brazened frauds, ie., wall street, missing 360
tons of $100 bills in Iraq, war profiteering, etc., without any fear of
prosecution, and of course concomitant decline for u.s. as the treasury is
looted. But I also believe its scope is beyond just the CIA with many
complicit within the corrupted 3 branches of u.s. government (fed judges, us
attorneys, illegal system, etc.) plus the military and private big money, ie.,
Goldman Sachs / wall street men, etc., among other organized crime.
america is defacto bankrupt in every way!
Rendition: Where the War on Terror Meets the War on Drugs Patrick Henningsen |
It’s time to ditch the policies we have come to tolerate for decades before
they consume what is left of our moral core. I’ve experienced the corrupt
inter-relationship of the government (all 3 corrupt branches) and the illegal
drug trade / obstruction of justice / bribery first hand, particularly the
courts / u.s. attorneys offices (ie., alito – now u.s. supreme court justice –
quid pro quo for his complicity / cover-up), feds; see immediately after
article excerpt for links / summary.


]. america’s just a fraudulent and failed defacto bankrupt nation.


concentration camp.
Billo Says:
June 11th, 2010 at 6:15 am
Glen Reply:
June 11th, 2010 at 6:47 am
Lunacy it would be.
threats.
only the insane.


WORLD!
OOOOH! ISRAEL NOW IN FAVOR OF NUKES IN THE MIDDLE EAST IN SUDDEN

SHIFT IN POLICY TO FAVOR IRAN IN A VERY BIG WAY! ISRAEL SEES THE
LIGHT AND SIDES WITH IRAN ON NUCLEAR ISSUE; ESSENTIALLY SAYS TO THE
have that and more:

“battlespace.”

(IMAGINATION).

fraud!

be mad.

surprised ].
Anthropologists adopt a more favorable view of Neanderthals (Washington Post)
[ Well, I’m a bit surprised and somewhat disappointed that with a little more
effort, rather than rely upon inference, they could have taken a trip to the
new york / new jersey / connecticut metropolitan area (etc.) and observed
directly these lower italian modern-day archaic humans! Then there are the
other modern day archaics / ape-like creatures that warrant greater
scrutiny. ]

Previously I wrote:

Regards,
Al Peia


perjury.pdf
another!
supplanted with alternatives as I’ve previously set forth in prior comments.
Response to App. Div. OSC

STATE OF CALIFORNIA ethics complaint
Response to Sup.Ct. OSC
designation of record on appeal
The so-called "order" appealed from.
Typical corrupt banana republic america/california court
ofperjury.pdf
perjury.pdf


Drudgereport: JUNE UNEMPLOYMENT 9.5%... 125,000 JOBS LOST...

New jobless claims rise [again]...
'Surprise'...
Pending home sales plunge record 30%...
Weak economic data suggest 'recovery' fizzling...
Fears mount over slowing global demand...
UN committee calls for dumping US dollar...
Six Months to Go Until the Largest Tax Hikes in History...
KRUGMAN: 'We are now, I fear, in the early stages of a third depression'...
STOCKS HIT LOWEST OF YEAR...
DEBT SOARS TO HIGHEST LEVEL SINCE WWII...
PRIVATE SECTOR SEES WEAKER JUNE JOBS...
Sputtering...
Bilderberg 2010: Between the sword and the wall...
Protesters 'being detained, searched, questioned'...
Final List of Participants...
Stephen Hawking: Aliens exist but don't talk to them -- it's too dangerous …
might not like us… Oh pshaw! … Human nature, man’s inhumanity to man? …
Such humble beginnings and evolutionary history … What’s not to like? …
Besides, not to worry. With their advanced technologies that defy human
understanding, the aliens already know you’re here … to stay. So, not to worry.
After all, as we know from that documentary of that same name, ‘Earth Girls Are
Easy’ … and then there’s photosynthesis on earth in a very big way also going for
it! ...
Seeing Aliens Will Likely Take Centuries. Centuries? Not goin’ to happen; at best,
decades.

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