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SATURDAY, MAY 30, 2009 053009(9)_IF
P. O. Box 510518, Punta Gorda, FL 33951-0518 An international financial, economic, political and social commentary. Published and Edited by: Bob Chapman
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***** NEXT SCHEDULED ISSUES Every Wednesday and Saturday June 2009 US MARKETS What we are about to tell you may be the most important information that we have imparted in almost 50 years. something very bad is looming – we don’t know the exact configuration yet, but we think the key is the collapse of the dollar, which will send gold and silver to considerably higher prices. These events could unfold over the next 2 to 4 months. There could be devaluation and default of the US dollar and American debt. You must have at least a 6-month supply of freeze dried and dehydrated foods, a water filer for brackish water, and assault weapons with plenty of ammo and clips. You should put as much of your wealth as you can in gold and silver coins and shares. You should not own any stocks in the stock market except gold and silver shares, you should not own bonds the exception being Canadian government securities, you should not own CDs, cash value life insurance policies and annuities. And, needless to say, except for your home you should be totally out of real estate, residential and commercial because it will remain illiquid for many years to come. Continue to pay your normal debts down because we do not know how they will be treated when we arrive at devaluation and default. We certainly don’t want to have to tell you this, but the way things are shaping up it doesn’t look good. As we write this the dollar is breaking 80 on the USDX. Interest rates are climbing, and have broken out to the upside. Gold and silver are poised to break into new high territory and the stock market is preparing to retest 6,600 on the Dow. You have been warned, act accordingly. The Chinese and Russians are the laughing stock of the US and European Illuminists at the G-20 meetings concerning talk about a new world reserve currency to supplant the dollar. With China's gold reserves of about a thousand tons and Russia's five hundred tons, they are like penny ante poker players trying to get in on a thousand dollar ante game. They need five to ten thousand tons of gold reserves just to be an average player in "The Big Game," much less a leading and influential player. The rest of their foreign exchange reserves are denominated in fiat currencies, which are all practically worthless except for the euro and Swiss franc. The euro has about 5% backing of gold and the Swiss could have 25% backing if they again desired gold backing. China has about two trillion dollars worth of foreign exchange reserves, while Russia has about 400 billion dollars worth. It does not take a math genius to figure out that two trillion times nothing is still nothing. They are creditors who hold worthless bonds and notes. Big deal. Their only trump card is that they can make gold skyrocket and the dollar tank before the Illuminists are ready to take our financial system down. This is where their real leverage lies. The talk about yuan and rubles as part of a world currency basket is just noise, like a bunch of clanging cymbals making cacophonous sounds, because they have very little gold backing. At best, unless China and Russia add many thousands of tons of gold to their reserves to back up their currencies, the yuan and ruble will get some
regional play, as a run-up to a world currency. This is just hubris to distract us from the true agenda, which is the formation of a single world currency. While gold suppression is the Fed and the US Illuminists' number one priority, it is not their number one problem. So what is their primary problem? It is how to transition from the dollar to a world currency without losing too much of the powers and privileges that can only be attained by having sole control over the world's reserve currency. They can't figure out how to share this power with the other Illuminist enclaves in setting up a new world currency without substantially reducing their own power. This is a conundrum for them. China and Russia are both well aware that they must acquire substantially more gold if they want to have any say on the matter of a world currency. The trick is, how to acquire new gold reserves without sending gold on a moon-shot or causing harm to the dollar by dumping dollars for gold. This is the opposite of what the Fed and US Treasury want, at least for now, until they are ready to take the system down to pave the way for a world currency and a one world government. So the Chinese and Russians are now at loggerheads with the US and European Illuminists. What China and Russia need to do in their own best interests is an anathema to the Fed and the US Treasury. This may explain the IMF gold sale rumors. China wants more gold, and this would be a way to grab a large chunk without running the gold price up, which would make the Fed go ballistic. The US and European Illuminists are also in a cat fight, because the European enclave controls more gold than the US elitists, so naturally they do not believe that the system of dollar hegemony, and all the privileges that go with it, should be continued any longer You might be tempted to think that, in reality, the US gold reserves and, for that matter, central bank gold reserves around the world, are not what the central banks claim them to be, due to leasing and outright sales, so the US and European Illuminists are in no better position than the Chinese and Russians with respect to the debate about a new world reserve currency. You would be dead wrong if you thought that. Why, you might ask? Let's discuss that. Never mind that the roughly eight thousand tons of US gold is stolen or hypothecated, because the US and European Illuminists stole a large portion of it, or they bought it at fire-sale prices and still have it in their secret vaults in Switzerland and off-shore in safe-haven countries. Who do you think was doing all the buying during the London Gold Pool of the late 1960's, just for starters, which was fueled by Fort Knox gold provided courtesy of President Johnson, who was an elitist bootlicker and one of the most evil men of the 20th century? Why do you think US coin melt from the Depression is showing up in London gold vaults? Rumors still abound that the Rockefellers, with President Johnson's help, stole a large portion of the Fort Knox gold during the London Gold Pool days, and those rumors could well be true based on what we have heard from some of our subscribers who used to work at Fort Knox. Could that explain why one of Rockefeller's secretaries, who blabbed about them acquiring some of the US gold, "accidentally" fell out of a high rise building? Could it be that President Johnson was grateful for Rockefeller's help in eliminating the pesky President Kennedy when he tried to put their precious Fed out of business via Executive order 11110? We'll let our subscribers decide! The same is true for the European gold holdings and the holdings of other central banks around the world, which are a fraction of what they claim, perhaps with as little as five thousand tons remaining out of some thirty thousand tons officially claimed by all central banks, including the privately owned US central bank, the Fed, via its so-called gold certificates, which are claims on the US Treasury gold. Rest
assured that much of this gold was leased out and sold not just to jewelers, but to the US and European Illuminists as well. In addition, much of this central bank gold was either pilfered outright, or was virtually given away by people like Gordon Brown of England, the King of Fire-Sale Gold, who sold half of the UK national gold reserves to the Rothschilds and other Illuminists at the bottom of the gold market. The remainder of the UK gold reserves is probably leased out and gone to oblivion like the US gold. The people in the UK are minus eight billion and counting on that one, while the Rothschilds are on the plus side of that equation. And who do you think were buying a large portion of the gold sold under the Washington Agreement and its various renewals? We'll give you three guesses. And who owns all the secret gold that has been stolen in various wars, conquests, pogroms, genocides and religious inquisitions over the many centuries, that don't show up in the World Gold Council's figures? And who owns all the scrap gold that was melted down in the last gold craze of the late 1970's and early 1980's for which no records were kept? And who owns all the old investment gold held by families of old wealth that was secretly moved from the US to Europe after the Great Depression on a tip-off from FDR that he was going to render gold ownership illegal in the US. They got a nice profit when FDR bumped the gold price from $20 an ounce to $35 dollars an ounce, didn't they? Who owns all this unaccounted for gold. Again, we'll give you three guesses. We can assure you that it is more than the 2% unaccounted for by the World Gold Council. Then there is the 26,500 tons of gold which the World Gold council allocates to private investment. Just who do you think most of those private investors are anyway? They are US and European Illuminists, that's who. They own tens of thousands of tons. Either they own it, or their central banks own it. The US and European Illuminists can shuffle their gold back and forth between themselves and their central banks as they see fit, since none of them are ever meaningfully audited. So if the Chinese and Russians want to play in this high stakes game, they need to buy lots of gold, and very quickly. The window of opportunity to buy gold on the cheap has already closed. Hyperinflation is on its way. They are too late to the cheap gold party. Buy gold now, before China and Russia try to accrue the amount of the gold required to ante up in "The Big Game" so they can have a say on the new world economy that will emerge in the aftermath of the current catastrophe. China is caught in a dollar trap. If they try to unload dollars, they destroy the remainder of their holdings, so they have to keep vacuuming up a large portion of the dollars that are being dumped in the form of treasury bonds to support criminal zombie bank bailouts and rampant socialistic welfare spending which the US government euphemistically calls a stimulus package. If China doesn't keep sucking up dollars, the US will have to monetize more and more treasury bonds to "save the economy," which is another euphemism for the socialization of Wall Streets losses courtesy of the US taxpayer. The top 19 banks, including the legacy banks, get all the money they want to shore up balance sheets and to take over the smaller fry, while the smaller fry get nothing, not even loans from the larger criminal zombie institutions who can't wait until they fail so they can absorb them at pennies on the dollar. The Fed now determines which financial institutions live or die by bestowing taxpayer largesse on who they may, but heaven forbid that they should have to account for what they are doing with that largesse. We need to audit and end the Fed, just as Ron Paul has requested via new legislation that is getting ever more sponsors. China and Russia are in a very poor position monetarily, at least as bad as Europe and the US, perhaps even worse. They have no business pushing their weight around when they their gold reserve holdings are inconsequential. So what if they are
creditors. The debts owed to them are denominated mostly, or at least substantially, in dollars, which are becoming ever more worthless as Emperor Obama throws lavish dollar bailout parties for the rich bankers and the social welfare recipients, while the middle class and non-anointed upper class, which could reduce the ensuing inflation caused by these lavish dollar parties via increased production, are given token relief. China has tens of millions of young men out of work, and if the US dollar, US treasuries and US economy go down, and inflation shows its ugly head due to dollar dumping and/or US treasury-shunning, we can assure you that the US consumers' demand for Chinese goods will drop off a cliff. You haven't seen anything yet when it comes to reductions in consumer demand. Wait until hyperinflation and double digit interest rates hammer the world economy. When the US consumer finally goes south for the last time, this will put tens of millions more out of work in China, and there will be violence and revolution if that happens. De-coupling is a myth that has been thoroughly shattered. While China is in a dollar trap, Russia is in an oil trap. The Illuminati still control the price of oil, so Russia is at their mercy as well. There recent financial market experience was an absolute disaster as oil tanked. Their markets were a shambles, and had to be closed down many times to stop panic selling and to control speculative short-selling. They had to spend down a large portion of their reserves to support the ruble and their financial markets. They are hardly in a position to dictate terms regarding a world currency. If they try to bully Europe with natural gas, this will backfire. The price of oil will then drop to $15 a barrel. Why are we paying interest to the Fed on money that is being created out of thin air to save the privately owned Fed itself, as well as its member institutions, which are receiving interest themselves from the Fed on the taxpayer money being loaned to them to shore up their balance sheets so they can continue to function without being shut down? We're paying interest while they're earning interest? Does that sound fair to you? Talk about moral hazard! And these are the same institutions that have conspired with the Fed to destroy our financial system to make way for a one world government, which is a euphemism for an Orwellian police state. We are certainly not paying this interest to ourselves as the media morons would have us believe, but to the anointed Illuminist financial institutions, which continue to privatize profits even while losses are being socialized to bail them out. The common and preferred stock which taxpayers own in these companies is worthless, a fact which is being covered up and hidden from investors by use of deceitful financial statements that allow assets, with the blessing of our "regulators," to be carried at mark-to-model values, meaning that these assets are whatever the criminal zombie financial institutions say they are. So, America, you will never collect a penny from any of these stocks, which are all worthless because trillions in losses are being hidden until such time as these institutions are allowed to fail so we can have one big honking central bank that makes the Fed look like a pipsqueak. So much for paying interest to ourselves. This is nothing less than outrageous, and Congress had better put a stop to this soon, end the Fed, and start issuing interest free currency via our Treasury, or they will suffer the wrath of the American people. Home resales in the U.S. rose for the second time in three months in April as foreclosure auctions and cheaper prices spurred bargain hunters, buttressing the case for an end to the industry’s slump this year. Purchases increased 2.9 percent to an annual rate of 4.68 million, in line with forecasts, from 4.55 million in March, National Association of Realtors figures showed in Washington. The median price slumped 15 percent from a year earlier, the second-
biggest drop on record. A separate report indicated that the slump in home values eased in the first quarter. President Obama’s campaign to cut health costs by $2 trillion over the next decade, announced with fanfare two weeks ago, may have hit another snag: the nation’s antitrust laws. Antitrust lawyers say doctors, hospitals, insurance companies and drug makers will be running huge legal risks if they get together and agree on a strategy to hold down prices and reduce the growth of health spending. Robert F. Leibenluft, a former official at the Federal Trade Commission, said, “Any agreement among competitors with regard to prices or price increases — even if they set a maximum — would raise legal concerns.” Yields on Fannie Mae and Freddie Mac mortgage bonds rose for a fourth day, after exceeding for the first time yesterday their levels before the Federal Reserve announced it would expand purchases to drive down loan rates. Yields on Washington-based Fannie Mae’s current-coupon 30- year fixed-rate mortgage bonds climbed to 4.55 percent as of 3:15 p.m. in New York, the highest since Dec. 5 and up from 3.94 percent on May 20, data compiled by Bloomberg show. Rising mortgage-bond yields, driven higher in part by climbing Treasury rates, means the Fed now “faces a challenge to its ability to sustain low mortgage rates,” according to Jeffrey Rosenberg at Bank of America Corp. The Fed, seeking to use lower home-loan rates to stem the housing slump and bolster consumers, said March 18 it would increase its planned purchases of so-called agency mortgage bonds by $750 billion, to as much as $1.25 trillion, and start buying government notes. “Market participants may be asking themselves the same question as Scorpio in ‘Dirty Harry’: ‘Do I feel lucky?’ ” Rosenberg, the bank’s head of credit strategy research in New York, wrote in a report yesterday, referring to a character in the 1971 Clint Eastwood film who may be shot. Crashing U.S. home prices have fueled the first global recession since World War II. The Fed, led by Chairman Ben S. Bernanke, may need to again adjust its mortgage-bond buying, after initially announcing the program in November, or boost its purchases of Treasuries, Rosenberg said. Home prices in 20 major metropolitan areas fell more than forecast in March, declining 18.7 percent from a year earlier, according to an S&P/Case Shiller index released yesterday The highest-graded bonds backed by commercial mortgages may be cut by Standard & Poor’s, potentially rendering the securities ineligible for a $1 trillion U.S. program to jumpstart lending. As much as 90 percent of so-called super senior commercial- mortgage backed bonds sold in 2007 may be affected as the ratings firm changes how it assesses the debt, New York-based S&P said today in a report. About 25 percent of the bonds sold in 2005, and 60 percent of those sold in 2006 may be cut. “We believe these transactions are characterized by increasingly more aggressive underwriting than prior vintages,” S&P said. “Furthermore, recent-vintage CMBS, particularly those issued since 2006, were originated during a time of peak rents and values,” and may be more affected by falling rents. Cutting the ratings would exclude the securities from the Federal Reserve’s program to bolster credit markets by financing the purchase of older commercial realestate debt. To be eligible for the program, collateral can’t carry a rating below AAA from any rating firm. Federal tax revenue plunged $138 billion, or 34%, in April vs. a year ago — the biggest April drop since 1981, a study released Tuesday by the American Institute for Economic Research says.
As more consumers struggle with bills, their credit scores are paying a price. From the third quarter of 2008 to the first quarter of 2009 — the latest data available — the average TransUnion credit score dropped 6 points to 651, the credit bureau says. Scores fell more dramatically in states hardest hit by the housing bust: California saw a 10-point drop, for example, and Arizona, 11. "Consumers are feeling the bite of the current recession," says Ezra Becker, a director in TransUnion's financial services group. "With delinquencies showing up in credit files, it's not surprising that the average score is decreasing somewhat." Becker believes credit scores aren't likely to improve — and could even drop further — through the second quarter of 2010. More than 200 million U.S. consumers have credit scores, so a change of even a few points in the national average can be significant, experts say. The latest drop is based on TransUnion's TransRisk credit score, rather than the widely used FICO credit score. Yet it's still a "meaningful" gauge of a possible trend because many of the same ingredients — including payment history and debt levels — go into calculating scores, says John Ulzheimer, a credit expert who used to work at Equifax credit bureau and Fair Isaac, the creator of the FICO score. Amid the recession, rising unemployment has made it harder for some consumers to pay bills, dragging down their credit scores. In the first quarter of 2009, credit card delinquencies hit a record high of 6.5%, while charge-offs reached 7.5%, a near-record high, according to the Federal Reserve. Banks are closing a record number of credit card accounts and reducing millions of dollars in credit lines. That could boost the percentage of credit consumers are using, hurting their scores. Foreclosures also are ruining credit. But in general, credit card problems take a greater toll on overall scores than mortgage woes. That's because only 50.6 million households have first mortgages, while nearly all of the nation's 114 million households have at least one credit card, says Mark Zandi, chief economist at Moody's Economy.com. Home sales in the Northeast declined more than in any other region in April as job losses took their toll, the National Association of Realtors said yesterday. Northeast home sales fell almost 11 percent from April last year, and the median sales price dropped almost 10 percent, to $237,400. Nationally, sales of existing homes slipped 4.6 percent, without adjusting for seasonal factors. The US median sales price slid more than 15 percent, to $170,200. One reason prices in the Northeast are holding up better - with the exception of Providence - is foreclosures do not account for most of the sales, as they do in the West, for example. Home sales in all nine major Northeast cities fell in April, with seven recording double-digit declines. Median prices decreased across the region, except in Pittsburgh, according to The Associated Press-Re/Max Monthly Housing Report, also released yesterday. But sales surged from the previous month in every metro area, the report says. Homes priced under $300,000 are getting the most attention, said Coldwell Banker real estate agent John Adair. Banks and thrifts earned $7.6 billion in the first quarter, the highest level of earnings during the past four quarters, but still 61% lower than a year earlier, the Federal Deposit Insurance Corp. said Wednesday. The FDIC's Quarterly Banking Profile said earnings continued to be hampered by a sizable growth in loan loss provisions. Banks set aside $60.9 billion in provisions in the first quarter, a 64% increase from a year earlier.
Non-interest income helped to boost bank earnings, jumping 12.8% from the first quarter of last year, to $68.3 billion. Net interest income was 4.7% higher while gains on securities and other assets jumped 153%. The rebound in non-interest income stemmed from higher trading revenue at a few large banks, but gains on loan sales and increased servicing fees also provided a boost, the FDIC said. Is there any question that fantasy or mark-to-model accounting accounted for the 153% Q1 surge in gains on securities and assets for banks? Or were bank traders so skillful that they generated ginormous gains? Some banks had planned for financial performance in 2009 and 2010 to cover 20% or more of their capital shortfalls. The Fed initially said the 10 banks ordered to raise a combined $74.6 billion would be allowed to essentially count $215.3 billion in revenue toward their estimated losses through the end of next year. Since announcing the stress-test results, though, Fed officials have grown concerned that some banks are leaning too heavily on future revenue projections, according to people familiar with the matter. Under the new requirement, projected revenue can be used for no more than 5% of the additional equity. About 14 percent of President Barack Obama’s $787 billion economic stimulus package has been allocated, creating 150,000 jobs in the 100 days since the measure was signed into law, the administration said. You can’t make up stuff like this! Banks want to buy their own toxic paper in the PPIP, which takes playing taxpayers for pasties to a new level. It is so egregious that solons quickly torpedoed the scheme. Federal Deposit Insurance Corp. Chairman Sheila Bair said banks involved in the U.S. Public- Private Investment Program won’t be permitted to buy their own impaired assets as a way to cleanse their balance sheets. Jamie Dimon, JPMorgan Chase chief executive, warned on Wednesday that loss rates on the credit card loans of Washington Mutual, the troubled bank acquired last year by JPMorgan, could climb to 24 per cent by the year end. Some American Embassies worldwide are being advised to purchase massive amounts of local currencies: enough to last them a year. Some Embassies are being sent enormous amounts of US cash to purchase currencies from those governments quietly. Inside the State Department there is a sense of sadness that “something” is about to happen but unknown as per a given date. Just that with the term within 180days. It could be 120 to 150 days. Arizona homeowners remain under severe pressure as foreclosures and delinquencies here and in three other states continue to push up the national averages. Arizona residential delinquencies rose 0.2 of a percentage point to 9.66 percent at the end of the first quarter from the fourth quarter, excluding loans in foreclosure, according to the Mortgage Bankers Association. Foreclosures were started on an additional 2.52 percent of Arizona mortgages, bringing to 5.56 percent the proportion of Arizona loans in foreclosure during the quarter. Arizona, California, Florida and Nevada accounted for 46 percent of all foreclosures started last quarter. R.H. Donnelley Corp., the publisher of 600 directories including telephone Yellow Pages, sought bankruptcy protection from creditors to reduce debt by about $6.4 billion amid mounting losses. The company, based in Cary, North Carolina, had assets of $11.9 billion and debt of $12.4 billion as of Dec. 31, according to Chapter 11 documents filed last night
in U.S. Bankruptcy Court in Wilmington, Delaware. Nineteen affiliates also sought court protection. R.H. Donnelly blamed the filing partly on “a significant decline in advertising sales due to the recent economic downturn and increased competition in the local business advertising industry,” according to court papers. The Federal Reserve's latest weekly money supply report Thursday shows seasonally adjusted M1 fell by $5.8 billion to $1.590 trillion, while M2 rose $12.2 billion to $8.328 trillion. A measure of manufacturing activity in the midwestern U.S. dropped to its lowest level in 15 1/2 years in April, as the struggling auto and steel sectors posted their weakest performances since the early 1990s. The Federal Reserve Bank of Chicago said Thursday that its Midwest Manufacturing Index fell 1.1% in April to a seasonally adjusted reading of 81.0. That's the lowest figure since November 1993, according to the Chicago Fed. By comparison, the Federal Reserve Board's national production index for manufacturing was just 0.2% lower in April. Chicago data compilers also revised downward its regional index for March, which stands at 81.8, from an initial estimate of 82.0. Total output in the five-state region fell 22.7% from April 2008, while output nationwide was down 14.3% from the same time a year ago. Mortgage rates were mostly higher again this week as long-dated Treasury yields continued to increase, according to Freddie Mac's (FRE) weekly survey of mortgage rates, released Thursday. Mortgage rates had fallen in recent months as providers try to entice buyers amid the housing market downturn. But many consumers are wary of making the commitment to purchase a home - and many prospective buyers face challenges getting financing amid the tight credit market. The 30-year fixed-rate mortgage averaged 4.91% for the week ended Thursday, up from last week's 4.82% average and down from 6.08% a year ago. Rates on 15-year fixed-rate mortgages were 4.53%, compared with 4.50% and 5.66%, respectively. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.82%, up from 4.79% last week and well below their 5.62% average a year ago. One-year Treasury-indexed ARMs were 4.69%, down from 4.82% and 5.22%, respectively. To obtain the rates, the fixed-rate mortgages required payment of an average 0.7 point and the adjustable-rate mortgages required an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest. New-home sales climbed a second time in three months during April, an encouraging sign for the housing market, but another big tumble in the median price suggested a recovery hasn't begun. Sales of single-family homes increased by 0.3% to a seasonally adjusted annual rate of 352,000 compared to the prior month, the Commerce Department said Thursday. March sales were revised lower, falling 3.0% to an annual rate to 351,000, Thursday's data showed. Originally, the government said March sales fell 0.6% to 356,000. February sales rose 10%. Economists surveyed by Dow Jones Newswires expected April sales up 2.5% to 365,000. Year over year, new-home sales were 34.0% lower than the level in April 2008. The market is bedeviled by foreclosures. Buyers are gobbling distressed property, priced cheaply and passing up on new homes. This restrains construction,
hurting builders as well as the kinds of commerce that feed off new subdivisions and might otherwise emerge - in the form of shopping malls, for instance. On Wednesday, the National Association of Realtors reported existing-home sales increased 2.9% to a 4.68 million annual rate. About 45% of the 4.68 million were foreclosures and short sales. The median home price dropped 15.4% to $170,200 from $201,300 in April 2008. For a new home, the median price dropped in April by 14.9% to $209,700, down from $246,400 in April 2008, the Commerce data Thursday said. The average price fell 19.2% to $254,000 from $314,300 a year earlier. In March 2009, the median price was $202,200 and the average was $257,100. Also forcing prices lower are a glut of unsold houses on the market. At the end of April, there were an estimated 297,000 homes for sale. That's down from the 310,000 for sale at the end of March. But the ratio of houses for sale to houses sold in April remained high, at 10.1. It was 10.6 in March. Lower prices and historically low borrowing costs have increased affordability. The average 30-year mortgage rate was 4.81% in April, down from 5.00% in March and 5.92% in April 2008, Freddie Mac (FRE) data show. The housing industry hopes demand is stirred by the $8,000 tax credit for first-time home buyers included in the Obama administration's economic stimulus package. However, tighter mortgage lending standards and rising unemployment are working against sellers. The unemployment rate in April climbed to 8.9% from 8.5% during March. Regionally last month, new-home sales were flat in the Midwest and the Northeast. Sales fell 3.8% in the West and climbed 1.9% in the South. An estimated 33,000 homes were actually sold in April, unchanged from March, based on figures not seasonally adjusted. The number of freshly laid-off workers filing new claims for state unemployment benefits fell more than expected last week even as the total number of people collecting benefits set a new record for the 17th time in as many weeks. The tally of continuing claims, those drawn by workers collecting benefits for more than one week in the week ended May 16, rose by 110,000 to a record 6,788,000. It was the 17th consecutive week in which that figure set a new record. Continued growth in the number signals the unemployment rate, which grew to 8.9% in April, will climb even higher in May. Initial claims for jobless benefits dropped by 13,000 to a seasonally adjusted 623,000 in the week ended May 23, the Labor Department said in its weekly report Thursday. The Department revised the previous week's figure upward by 5,000 to 636,000. Durable-goods orders hovered near a 13-year low and the number of Americans collecting unemployment insurance reached a 17th straight record, offering no sign of an imminent rebound from the worst U.S. recession in half a century. Orders rose 1.9 percent in April after a 2.1 percent drop in March that was more than twice as large as previously estimated, the Commerce Department said in Washington. Meanwhile, the Labor Department said 6.79 million people are collecting jobless benefits, and another report showed new-home sales were lower than forecast in April. Bankers have done very well over the years. Since 1980 they have accumulated fabulous wealth with help and guidance from the privately owned Federal Reserve. The new pursuit in America was making money with money, what else was one to do when our manufacturing went into decline as free trade, globalization, offshoring and outsourcing came into vogue aided by large tax breaks. In fact, the bankers became so wealthy that they tried to buy every politician in Washington. They
were eminently successful with about 85% of these elected opportunists. They were aided during the Reagan years by the beginnings of deregulation. Part of this largess was spent on capturing and controlling the media. Things got so good that they gave credit cards to anyone who could scribble their name. Bankers and Wall Street were Masters of the universe. Up until two years ago they had their way with Americans, but something went wrong. They turned banking into a casino using forty to sixty times deposits leverage and the fallout was fatal. Forty percent of corporate profits in 2005 came from the financial sector. A good part of those profits came from derivatives and the syndication of bonds containing mortgages known as collateralized debt obligations and asset backed securities. Scamming professionals, particularly Europeans, and the public, was and still is legal. They created and packaged some $900 trillion in debt, most of which was rated AAA when in fact it was BBB. The Fed aided and abetted the scam and the SEC looked the other way as their part in the scam. The result was 22 months ago, due to the comments of analyst Meredith Whitney regarding Citigroup’s value, the whole house of cards collapsed. That plunged America into its worst crisis since the 1870s and the 1930s. That was an untoward event that no one contemplated. This in part was the result of being the world’s largest exporter, which became the largest importer. All this was expedited by GATT and in 1986 the World Trade Organization and in 1995 NAFTA. The destruction of American manufacturing, so that American transnational conglomerates could further enrich themselves. That was accompanied by deregulation and the destruction of the Glass Steagall Act. The door was opened and like in the 1920s, let the looting of the American public begin. Today the bubble has to be re-inflated. If it is not the system collapses. Pay no heed to a falling dollar and un-payable debt. It means nothing as long as Wall Street, banking and insurance are saved. Who cares about debt as long as the corrupt system run by the Fed survives? This is why Rep. Ron Paul’s HR 1207 is so important. This is the instrument that created all this, the Fed. The bill now has 179 co-sponsors in the House. This bill to audit the Fed is the most important piece of legislation in 100 years. Contact and thank the co-sponsors and write the remainder of the House and tell them you want this legislation out of committee and you want it passed. The entire future of your children and grandchildren hinges on this legislation. This is our last chance. Make sure the Federal Reserve Transparency Act of 2009 is passed. Worldwide debt is being liquidated. It wasn’t but six months ago when major de-leveraging was taking place that the Fed was establishing swap lines with the ECB and other European central banks, so that an unprecedented demand for dollars could be met. Now the Fed is requesting swap lines with those same central banks in their currencies. They have arranged for $112 billion in euros, 10 trillion yen, $45 billion in pounds and $45 billion in Swiss francs. It looks like a good part of dollar de-leveraging is over and these swap arrangements have been made in an attempt to defend the dollar on the way down. It also appears that those who are owed money by US entities do not want to accept dollars, but instead want their own or other currencies. This does not auger well for the dollar. Since October 31, 2007, equity market capitalization worldwide has fallen 50% in dollar terms. Swaps obviate the necessity for US commercial banks to sell dollars on the currency markets to get the foreign currency they need. It works, but it is only temporary, because sooner or later those swaps have to be unwound. The swaps, except to professionals, mask dollar weakness and temporarily give the dollar some buoyancy. There is no question, as far as we are concerned, that this swap arrangement was the beginning of the end for the dollar. This is one of the reasons we said sell the dollar at 89.50.
One of the latest attempts to keep the financial system from collapsing is the Public Private Investment program, which was designed to make sure debt paper in US banks would never be priced on any kind of an open market. A perpetual mark-tomodel solution. As a cover the FDIC is being used to ensure that Congress doesn’t poke their nose into what is really going on. In this program government and private interests will buy under performing assets, such as CDOs, better known as toxic garbage. This way all of balance sheet and off balance sheet contingent liabilities can be sold, allowing the taxpayers to foot the bill. The ratio of sharing is as you would expect, 97% of taxpayer funds and 3% of private sector funds. The treasury borrows the money from the Fed that makes it up out of thin air and the FDIC, which is broke, insures it. The catch is the FDIC cannot insure anything over $30 billion. But, for Tiny Tim nothing is impossible. He will just ignore the law as he frequently does, to save a corrupt banking system - more Mickey Mouse bookkeeping to continue the charade. Thus, the global orgy of stimulus programs continues unabated. The Illuminist banks have to be saved no matter what the cost. The platitudes of propaganda continue like a faucet running under full force. What is really disturbing is that stimulus has not and will not work, and that the Fed has presided over a 98% fall in purchasing power of the US dollar since its inception in 1913. That is why we have to get HR 1207 passed. As the Fed and Treasury destroy the financial system they are destroying the economy by preventing the real asset values on their balance sheets from ever being priced. As you can see we live in the land of the “Mad Hatter.” All the insiders are being trotted out to tell us that the recession is over and recovery is near, which means they are going to allow the market and bonds to fall further. There is no faith, trust or confidence left in our government, banks and Wall Street. Federal Deposit Insurance Corp. Chairwoman Sheila Bair said banks involved in the US Public-Private Investment Program won't be permitted to buy their own impaired assets as a way to cleanse their balance sheets. "There should be no confusion: Banks will not be able to bid on their own assets," Bair said yesterday at a Washington, D.C., news briefing to discuss firstquarter bank earnings. There is "no structure" for such purchases, she said. The FDIC is helping the Treasury set up and run the PPIP, which will use $75 billion to $100 billion of Troubled Asset Relief Program funds to help private investors buy as much as $1 trillion in mortgage-backed securities and other holdings. Industry Groups such as the Clearing House Association LLC, which includes JPMorgan Chase & Co. and Bank of America Corp., are pressing the FDIC to let lenders buy their own assets, The Wall Street Journal reported yesterday. Investor return requirements "may involve pricing at which banks are unwilling, and even unable, to sell loans," the group wrote to the FDIC on April 10. The Wednesday 2-year note auction drew 2.32 to 1 bids to cover .2 to 1 is acceptable. Thus the auction went well. The last auction was 2.22 to 1 at 3.7%. Treasuries are now paying 20% plus higher rates than they were just a month ago. This is a reflection of credit watch negative. The Fed has spent more than $130 billion created out of thin air in an attempt to prop up the bond market. A mere pittance in the scheme of things. This effort is to bring about lower mortgage rates, which is a losing battle. This as 20% of those who bought a home in the last five years are fighting off foreclosure. The Fed’s program has thus far been an utter failure, in part because lenders absolutely refuse to cooperate.
The FDIC tells us 305 banks are on the problem list. We ask why can’t they be bailed out as the 19 money center banks, owners of the Fed were? That is in the first quarter, up from 252 at the end of 2008, the highest since 1994. Problem assets were $220 billion, up from $159.4 billion. Loan loss provisions fell to $60.9 billion from $69.3 billion. the cost of impaired assets weigh heavily on bank balance sheets. The Treasury plans to inject a fresh $50 billion in support of GM. GM will have $12 billion debt when it exits bankruptcy. The taxpayer is bailing out JP Morgan Chase and Citigroup out of 100% of their GM debt. This is absolute fraud. They not only will collect on all of their bad loans to GM, but they will also collect 100% of their CDS, credit default swaps, they placed on the GM bankruptcy. This is another reason we have to terminate the Fed and clean out the Wall Street crooks at the Treasury. The US government debt de-rating will cause havoc with the economy. If taxes are not increased 60% or spending cut 60% then the rating will drop and that could happen this year. Inflation alone could push the ratings over the edge. We are looking at at least an average of 10% of inflation over ten years. We won’t be lucky enough to get that. We’ll get hyperinflation and then deflation. In order to avoid this the Fed is now buying longer-term Treasuries in an effort to keep Treasury yields low and they have been unsuccessful. Close to 1 million present and past employees of GM are going to be effected by the bankruptcy of GM. Then there are the ancillary workers and other suppliers of another 1 million workers or more. Isn’t free trade, globalization, offshoring and outsourcing just great? This should take consumption as a percentage of GDP down from 70.4% to 69% easily. The American consumer as the driving force in the economy is at least for now at an end. There are homeowners eight months behind on their payments that have not even been contacted by their bank. Bank loan arrears increased another $59 billion or another 25% in the first quarter. Banks do not want to foreclose and add properties to their giant inventories. The total financial area is beyond disgusting. Yields on Fannie Mae and Freddie Mac mortgage bonds rose for a 4th day, after exceeding for the first time yesterday the levels before the Fed announced it would expand purchases to drive down interest rates on loans. Yields on the 30-year fixed rate mortgage bond climbed to 4.55%, the highest since 12/5/08 and up from 3.94% on 5/20/09. Chicanery reigns, as the Commerce Department reports durable goods orders to be up 1.9% in April. What they buried in the report was the March number was revised down from the originally reported minus .8% to minus 2.1%. Year-on-year, April durable goods orders declined a staggering 26.6%. There are no green shoots here. A record 12.07% of loans on one-to-four unit residences were at least one payment past due or in the foreclosure process in the first quarter. New home sales were reported to be up .3% in April, however March numbers were revised from plus .6% to minus .3%, a huge revision. Can you see the game being played? New home sales fell 34% yoy. Mortgage delinquencies hit 7.9% of all loans, the highest level since 1972. Prime delinquencies are now higher than subprime delinquencies. The prime market is 10 times the size of the subprime market. The commercial paper market contracted to the lowest level outstanding in 8 years. Short-term funding fell by $35.9 billion to $1.248 trillion, the lowest since 2001, down from $1.2281 trillion the previous week. At its peak in August 2007, it was worth $2.2 trillion. Again, it looks like the US 10-year Treasury note is on its way to 4%. The Fed cannot save the interest rate market; they have lost control of long end. This means
they cannot save the mortgage market. In reality they caused the collapse of the bond market by monetizing government debt. At the same time they crushed the dollar by doing swaps with European countries. On Thursday, the Fed bought about $10 billion worth of GSEs; that is Fannie Mae and Freddie Mac bonds. They had been buying about $2 to $3 billion a day. The immediate affect was higher GSE prices, but that didn’t last long. The Fed’s balance sheet contracted by $90 billion for the week ended Wednesday. Liquidity swaps or currency swaps fell $51.5 billion; TAF lending fell $56.2 billion. Policymakers WANT to believe that deflation is the main threat, because it justifies zero interest rates, and they WANT to believe that they can borrow 10% of GDP without adverse consequences, because it justifies them in spending public money, which is always fun. However in reality both beliefs are wrong and the global economy is about to demonstrate this the hard way. A rush to commodities will intensify an already problematic surge in inflation, while severe bond market indigestion will reduce economic well-being for much of the next decade. US Inflation to Approach Zimbabwe Level, Faber Says The U.S. economy will enter hyperinflation approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said. A rate spike this large results in chaos. Weeks/months of purchase and refi loan applications will be lost. Mortgage operations centers are parsing through thousands of loans focusing only on locked loans and purchases mitigating potential losses. The rest are dead wood. Mark notes that GSE jumbos jumped to as high as 7%. Ambrose Evans-Pritchard: The US Federal Reserve may soon be forced to launch fresh blitz of quantitative easing whatever the consequences for the US dollar, or risk seeing economic recovery snuffed out by the latest surge in long-term borrowing costs. What is clear is that the market choked on $100 billion of US Treasury debt issued in three auctions this week, and on the knowledge that Washington must raise a further $900 billion by September. Governments around the world must fund $6 trillion of deficits this year, exhausting the capital markets. The US is at the front of the firing line. Beijing is clearly losing its patience with the Fed's policy of printing paper, seen as a form of stealth default. There is some risk that further moves to step up quantitative easing could cause China to boycott US Treasury auctions. China and Japan together hold 23 percent of all US federal debt. Dallas Fed chief Richard Fisher said his recent trip to Asia was an eye-opener: Chinese government senior officials grilled me about whether or not we are going to monetize the actions of our legislature. The Fed’s choice is to risk a dollar collapse and bond market chaos or allow natural forces to cleanse the US financial and economic systems. The ‘muddle through’ option is dead due to the enormous debt load. Evidence appears to be mounting that the Obama administration has systematically targeted for closing Chrysler dealers who contributed to Repubicans. What started earlier this week as mainly a rumbling on the Right side of the Blogosphere has gathered some steam today with revelations that among the dealers being shut down are a GOP congressman and closing of competitors to a dealership chain partly owned by former Clinton White House chief of staff Mack McLarty.
The basic issue raised here is this: How do we account for the fact millions of dollars were contributed to GOP candidates by Chrysler who are being closed by the government, but only one has been found so far that is being closed that contributed to the Obama campaign in 2008? [It’s the Chicago way!] Maybe it's significant, maybe not, but a colleague here in the Examiner newsroom just reminded me that White House car czar Steven Rattner is married to Maureen White, the former national finance chairman of the Democratic National Committee. And let's not forget that before Rattner became a Wall Street mover and shaker, he was a New York Times reporter. From a Fellow Subscriber: Hi I heard you on Melodies show today. You were reading a letter from someone at a US embassy. It said they were instructed to buy more than a years worth of local currency. I also heard you say this is BAD!!! You then went on to say that within the state dept. there is a knowledge of something eminent about to happen most likely in a 120 days or so I heard an interview with a man who happened to be interviewing for a job at the police station in California. He was put in a room and told to wait for the interviewer. Across the hall he heard voices from the conference room, he began to listen and heard 3 different men talking. One of the men was saying they need to federalize the local police across the country, and was asking another man if he could get his men to agree. The man overhearing this conversation looked out of his room and peered in the conference room where he was hearing the conversation. He saw 2 men in FEMA jackets talking to the Police chief. He then overheard the FEMA men tell the chief they (US Gov) would be closing Banks in late Aug early Sept and that it will get ugly. This would put that date exactly out to the 120 to 150 days , that the state dept is looking at when (something) might go down. It seems to me that the Gov knows what is coming down and thus telling the Embassies to have a ton of local currency to carry them over for when this countries banking system is shut down or allowed to collapse. Why else would the Gov be sending tons of cash to embassies to by local currency to carry them over for more than a year ??? Most likely our US currency in the 120 days to 150 days will be worth NOTHING !!! What are your thoughts about what the man heard in the police station? Could it be they ARE planning to close the banking system late August or September ?? If not why are they sending so much money to and instructing embassies , convert it to local currencies?? If this is a good possibility how much cash should I have on hand if it is rendered useless 3 or 4 months from now ?? I try not to bother you much lately with e-mail.... I know you are busy!!! However with the testimony of the man hearing FEMA and what you have been told about the embassies and your inside info from the State Dept................. it seems to be adding up. I value your opinion and being how I have no father to ask advise, I appreciate and value what you say. Thanks Bob. Mortgage delinquencies and foreclosures rose to records in the first quarter as mounting job losses caused more Americans to fall behind on home loans. The U.S. delinquency rate jumped to a seasonally adjusted 9.12 percent and the share of loans entering foreclosure rose to 1.37 percent, the Mortgage Bankers Association said today. Both figures are the highest in records going back to 1972.
The Federal Reserve's latest weekly money supply report Thursday shows seasonally adjusted M1 fell by $5.8 billion to $1.590 trillion, while M2 rose $12.2 billion to $8.328 trillion. A measure of manufacturing activity in the midwestern U.S. dropped to its lowest level in 15 1/2 years in April, as the struggling auto and steel sectors posted their weakest performances since the early 1990s. The Federal Reserve Bank of Chicago said Thursday that its Midwest Manufacturing Index fell 1.1% in April to a seasonally adjusted reading of 81.0. That's the lowest figure since November 1993, according to the Chicago Fed. By comparison, the Federal Reserve Board's national production index for manufacturing was just 0.2% lower in April. Chicago data compilers also revised downward its regional index for March, which stands at 81.8, from an initial estimate of 82.0. Total output in the five-state region fell 22.7% from April 2008, while output nationwide was down 14.3% from the same time a year ago. Mortgage rates were mostly higher again this week as long-dated Treasury yields continued to increase, according to Freddie Mac's (FRE) weekly survey of mortgage rates, released Thursday. Mortgage rates had fallen in recent months as providers try to entice buyers amid the housing market downturn. But many consumers are wary of making the commitment to purchase a home - and many prospective buyers face challenges getting financing amid the tight credit market. The 30-year fixed-rate mortgage averaged 4.91% for the week ended Thursday, up from last week's 4.82% average and down from 6.08% a year ago. Rates on 15-year fixed-rate mortgages were 4.53%, compared with 4.50% and 5.66%, respectively. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.82%, up from 4.79% last week and well below their 5.62% average a year ago. One-year Treasury-indexed ARMs were 4.69%, down from 4.82% and 5.22%, respectively. To obtain the rates, the fixed-rate mortgages required payment of an average 0.7 point and the adjustable-rate mortgages required an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest. New-home sales climbed a second time in three months during April, an encouraging sign for the housing market, but another big tumble in the median price suggested a recovery hasn't begun. Sales of single-family homes increased by 0.3% to a seasonally adjusted annual rate of 352,000 compared to the prior month, the Commerce Department said Thursday. March sales were revised lower, falling 3.0% to an annual rate to 351,000, Thursday's data showed. Originally, the government said March sales fell 0.6% to 356,000. February sales rose 10%. Economists surveyed by Dow Jones Newswires expected April sales up 2.5% to 365,000. Year over year, new-home sales were 34.0% lower than the level in April 2008. The market is bedeviled by foreclosures. Buyers are gobbling distressed property, priced cheaply and passing up on new homes. This restrains construction, hurting builders as well as the kinds of commerce that feed off new subdivisions and might otherwise emerge - in the form of shopping malls, for instance. On Wednesday, the National Association of Realtors reported existing-home sales increased 2.9% to a 4.68 million annual rate. About 45% of the 4.68 million were foreclosures and short sales. The median home price dropped 15.4% to $170,200 from $201,300 in April 2008.
For a new home, the median price dropped in April by 14.9% to $209,700, down from $246,400 in April 2008, the Commerce data Thursday said. The average price fell 19.2% to $254,000 from $314,300 a year earlier. In March 2009, the median price was $202,200 and the average was $257,100. Also forcing prices lower are a glut of unsold houses on the market. At the end of April, there were an estimated 297,000 homes for sale. That's down from the 310,000 for sale at the end of March. But the ratio of houses for sale to houses sold in April remained high, at 10.1. It was 10.6 in March. Lower prices and historically low borrowing costs have increased affordability. The average 30-year mortgage rate was 4.81% in April, down from 5.00% in March and 5.92% in April 2008, Freddie Mac (FRE) data show. The housing industry hopes demand is stirred by the $8,000 tax credit for first-time home buyers included in the Obama administration's economic stimulus package. However, tighter mortgage lending standards and rising unemployment are working against sellers. The unemployment rate in April climbed to 8.9% from 8.5% during March. Regionally last month, new-home sales were flat in the Midwest and the Northeast. Sales fell 3.8% in the West and climbed 1.9% in the South. An estimated 33,000 homes were actually sold in April, unchanged from March, based on figures not seasonally adjusted. The number of freshly laid-off workers filing new claims for state unemployment benefits fell more than expected last week even as the total number of people collecting benefits set a new record for the 17th time in as many weeks. The tally of continuing claims, those drawn by workers collecting benefits for more than one week in the week ended May 16, rose by 110,000 to a record 6,788,000. It was the 17th consecutive week in which that figure set a new record. Continued growth in the number signals the unemployment rate, which grew to 8.9% in April, will climb even higher in May. Initial claims for jobless benefits dropped by 13,000 to a seasonally adjusted 623,000 in the week ended May 23, the Labor Department said in its weekly report Thursday. The Department revised the previous week's figure upward by 5,000 to 636,000. Durable-goods orders hovered near a 13-year low and the number of Americans collecting unemployment insurance reached a 17th straight record, offering no sign of an imminent rebound from the worst U.S. recession in half a century. Orders rose 1.9 percent in April after a 2.1 percent drop in March that was more than twice as large as previously estimated, the Commerce Department said in Washington. Meanwhile, the Labor Department said 6.79 million people are collecting jobless benefits, and another report showed new-home sales were lower than forecast in April. You've heard some big numbers thrown around. For example, total U.S. government liabilities are at least $65 trillion dollars. But the head of the Dallas Federal Reserve bank says: [There is a] "very big hole" in unfunded pension and health-care liabilities built up by a careless political class over the years. "We at the Dallas Fed believe the total is over $99 trillion," he said in February. Over $99 trillion? That's a serious shortfall. The Boston Police Department is preparing a plan to arm as many as 200 patrol officers with semiautomatic assault rifles, a significant boost in firepower that department leaders believe is necessary to counter terrorist threats, according to law enforcement officials briefed on the plan.
The initiative calls for equipping specialized units, such as the bomb squad and harbor patrol, with the high-powered long-range M16 rifles first, the officials said. The department would then distribute the weapons to patrol officers in neighborhood precincts over the next several months, according to the two law enforcement officials, who spoke on the condition of anonymity because they did not have permission to speak publicly. The U.S. economy shrank at a 5.7 percent annual pace in the first quarter, capping its worst six- month performance in five decades and reflecting declines in housing, inventories and business investment. The contraction in gross domestic product was smaller than the government estimated last month, revised figures from the Commerce Department showed today in Washington. The drop was larger than economists had forecast, and followed a 6.3 percent tumble in the last three months of 2008. What they don’t tell you is that the first figure was a fall of 6.1% and it is almost statistically impossible to drop down to a 5.7%, they must have Mickey Mouse doing the figures. A record 9.1 per cent of all US mortgages were delinquent at the end of the first quarter, the Mortgage Bankers’ Association reported on Thursday, highlighting the pressure on policymakers as they attempt to engineer a still elusive bottom in the US property market. Housing starts and sales appear to be stabilising, and homes no longer look expensive. But house prices are still falling rapidly – down 2.2 per cent in March alone, according to the Case-Shiller index. Delinquencies and foreclosures are rising and spreading to so-called prime mortgages. Now a partial rebound in mortgage rates – in conjunction with the growth of negative equity – threatens to maintain downward pressure on prices, while also limiting the capacity of indebted households to refinance at ultra-low rates. “The housing recovery hasn’t even started, and it is already at risk,” said Ed Yardeni, president of Yardeni Associates. Cargill Inc., Archer Daniels Midland Co. and Bunge Ltd. are benefiting from the most government support for farm exports since 1992 as the U.S. steps up loan guarantees for foreign buyers unable to get credit. About $4.35 billion was allocated to countries from Jamaica to Turkey through April 6 in the year that started Oct. 1. That’s 40% more than in all of fiscal 2008 and almost triple 2007’s total. Arthur Samberg, once the world’s biggest hedge-fund manager, said a federal insider-trading investigation is forcing him to shut Pequot Capital Management Inc. more than two decades after starting its first fund. Pequot oversees $3.47 billion, according to a May 15 regulatory filing, down from $4.3 billion in November and $15 billion in 2001. The new Chrysler LLC that will emerge from bankruptcy will receive a $6.6 billion in exit financing, the U.S. Treasury said today in a statement today. The new entity will also get almost $350 million under a loss-sharing deal with GMAC LLC that was previously announced, according to Treasury. In the same document that listed transactions in the government’s Troubled Asset Relief Program, Treasury said General Motors Corp. got $360.6 million in additional aid to fund its warranty program. The assistance brings to $19.76 billion the total that Detroit-based GM has received so far. The Wall Street and banking crowd do not like what government is preparing in the way of derivative regulation and they are going to present their own plan. We can kiss transparency goodbye. The banks and brokerage houses are pulling out all stops to defeat any real worthwhile legislation. They are calling in campaign markers and their lobbyists are working 18 hours a day on this one.
The average loan for a 30-year fixed rate mortgage was 5.4% on Thursday, up from 5.03% on Tuesday. That will put more pressure on home prices and inventory. The latest rumor is that CDS credit default swaps written against GM are in the trillions of dollars and were mostly backed by AIG. Can our economy and the American taxpayers survive this? In just the past year the taxpayer is on the hook for $55,000 per household to cover rising federal commitments made in just this past year. 2008 saw a 12% increase in red ink. America is broke. As we said at the beginning of the IF major events will be happening before the year is out regarding the dollar. The slide and the hyperinflation should last about 2-1/2 more years. Devaluation and default shouldn’t occur before then, but they’ll be much market tumult over that period. There is no question that the world financial system is in a state of collapse. We tell you over and over again all your assets, besides your home, have to be in gold and silver related assets. The biggest of the big hitters are entering the fray on the side of gold and it is only a matter of time before many others, mostly professionals, will join in. The public won’t join in until gold passes $2,000 and silver $50.00. Besides the possibility that Congress may attempt to roll retirement plans into Social Security, there looms another threat. That is global regulators forcing banks and other custodians to take retirement funds to buy government bonds. This is the route Argentina took almost 10 years ago. The justification will be safety. Then, of course, the bonds collapse. That is why there is a penalty and immediate taxation for withdrawal.
Manipulation: How Markets Really Work by Stephen Lendman http://sjlendman.blogspot.com/ ***** Rampant Inflation, Bank Runs, Bare Grocery Shelves Suburban Survivalists Are Getting Ready by Gillian Flaccus http://lewrockwell.com/spl/rampant-inflation.html ***** The Bilderberg Plan for 2009: Remaking the Global Political Economy by Andrew G. Marshall http://www.globalresearch.ca/index.php?context=va&aid=13738 ***** Once Considered Unthinkable, U.S. Sales Tax Gets Fresh Look By Lori Montgomery http://www.washingtonpost.com/wpdyn/content/article/2009/05/26/AR2009052602909.html ***** U.S. Inflation to Approach Zimbabwe Level, Faber Says By Chen Shiyin and Bernard Lo
http://www.bloomberg.com/apps/news?pid=20601068&sid=avgZDYM6mTFA&refer=e conomy ***** US: H-1B workers outnumber unemployed techies Fraud case raises questions about visa program By Patrick Thibodeau http://www.computerworld.com/action/article.do?command=viewArticleBasic&taxonom yName=legislation/regulation&articleId=9133529&taxonomyId=70&intsrc=kc_top ***** Ron Paul on CNN American Morning 5-27-2009 http://www.youtube.com/watch?v=YJ0uUcBvvj0&eurl=http%3A%2F%2Frevolutionaryp olitics%2Ecom%2F%3Fp%3D846&feature=player_embedded ***** "Obama Man" by Greg Morton http://www.youtube.com/watch?v=zhhkF3dqXR0&feature=player_embedde d ***** Zombie Bank [Video] http://news.goldseek.com/GoldSeek/1243404300.php ***** Justice Prisoner and Alien Transportation System http://en.wikipedia.org/wiki/Justice_Prisoner_and_Alien_Transportation_System ***** How Google Earth explains the financial crisis http://blog.foreignpolicy.com/posts/2009/05/07/how_google_earth_explains_the_ financial_crisis ***** Goldman Shareholders Suffered as Blankfein Earned $43 Million http://www.bloomberg.com/apps/news?pid=20601109&sid=aOqGBzGEkJbg&ref er=home ***** Ten Steps To Close Down an Open Society <http://www.huffingtonpost.com/naomi-wolf/ten-steps-to-close-downa_b_46695.html> By Naomi Wolf, The Huffington Post, March 25, 2008 ***** Sotomayor on the Supreme Court: A Gun-grabber’s Dream Come True http://www.infowars.com/sotomayor-on-the-supreme-court-a-gun-grabbers-dreamcome-true/ ***** Thousands of New Jobs 'Created' by Obama's Stimulus Are Summer Jobs for Teens http://www.cnsnews.com/public/content/article.aspx?RsrcID=48780 ***** NY officer acquitted for body slam that broke woman's jaw http://rawstory.com/blog/2009/05/ny-officer-acquitted-after-body-slam-which-brokewomans-jaw/
***** Oklahoma cop pulls ambulance over; puts EMT in chokehold while patient lingers http://carlosmiller.com/2009/05/28/oklahoma-cop-pulls-ambulance-over-putsemt-in-chokehold-while-patient-lingers/ http://www.news9.com/global/story.asp?s=10427244 http://www.news9.com/Global/category.asp?C=116601&autoStart=true&topVide oCatNo=default&clipId=3801638 ***** Imminent Market Meltdown Spells Misery for Most; Profits for Gold Bugs By Marc Davis of BNW Newswire http://www.bnwnewswire.com/editorial-Imminent-Market-Meltdown-SpellsMisery-for-Most.html ***** Talk by Naomi Wolf - The End of America http://www.youtube.com/watch?v=RjALf12PAWc ***** Replacing Michelle in Chicago http://www.sodahead.com/blog/83437/replacing-michelle-in-chicagounclassified/ ***** From a Fellow Subscriber: GM and Chrysler Dealers that get the Letter? Here in the NW United States its being discussed on Conservative Talk Radio (Lars Larson, KXL in Portland, OR) that car dealers with profitable businesses are getting the letter from GM or Chrysler that they will be shut down. The only common denominator is that they advertise on Conservative Talk Radio. Last week a Chrysler dealer in Portland received the letter and today a representative of the GM dealer “Gold Chevrolet and Cadillac” in Newport, OR commented about the letter that they got and they don\'t have any clue why they were singled out. If the Democrats can't control the airwaves then they will take out the revenue that supports Conservative Talk Radio. ***** From a Fellow Subscriber: Mortgage Insurance Changes for California: 85% Maximum LTV for the High Balance Conforming Loan Program Effective on and after June 1, 2009, Wells Fargo Wholesale Lending will require the following for High Balance conforming loans in California which require borrower-paid or lender-paid mortgage insurance (BPMI or LPMI). Wells Fargo Policy prior to June 1, 2009 Wells Fargo Policy on and after June 1, 2009 - Maximum LTV = 90% Maximum LTV = 85% The Broker Guide will be updated with these changes.
Pipeline and Delivery Requirements Because this is a mortgage insurance change, impacted loans (including loans with an underwriting commitment) MUST lock prior to May 29, 2009, at 8:00 p.m. CT, or be restructured. • No exceptions will be allowed to the May 29, 2009, lock requirement. • Locked loans meeting these requirements must fund by July 31, 2009, or be restructured. Exceptions will not be given. ***** From a Fellow Subscriber: Thanks Bob: I have done all you have suggested below 2 years ago. And I have just about doubled my money. I have basically nothing to do but watch this play out. I have 20,000 rounds for my 4 AR-15's and 10,000 rounds for my 6 pistols and 10,000 rounds for my 2 Saiga semi auto 12 gauge and 2 Remington 870 Tactical 12 gauge ..... I am ready. I hope I never have to use these but I am very prepared. Just want to keep abreast of the latest happenings. Thank you Bob for your tireless effort and your advice. If I had not found you on Melodies show and never subscribed to the forecaster, I would literally be broke , paying off a mortgage and wondering where my next meal would come from. Thanks to you and Melody I am a Free Man (as much as you can be in this fascist country). God bless Bob, you and your family are in my families prayers. ***** From a Fellow Subscriber: Dear Bob and Chris: Thanks for the stock recommendations. I just checked my brokerage statement. I am up AEM 27% GG 44% SSRI 97% MFN 7% This has enabled me to make back much of my losses suffered on the market downturn and more importantly I am poised for future growth and protection of my assets. The price of your newsletter is probably one of the best bargains out there. I am constantly amazed at what you can produce twice per week, no less. Most newsletter writers can't produce in a month, what you produce in a week. Were it not for my listening to Goldseek radio, there's no doubt that I would have missed out on these opportunities. Regards and again, many thanks. ***** From a Fellow Subscriber: Hi Bob—in case you have not seen it yet—FOX NEWS —HAS ALLOWED A STRUCTURAL STEEL EXPERT “ARCHITECT” TO TALK AT LENGTH ABOUT — “THERMITE”— BRINGING DOWN THE WTC ON 9-11—AND THE 2 CO-HOSTS OF THE NEWS SHOW WERE VERY RESPECTFUL AND DEFFERENTIAL AND LET
HIM SAY ANYTHING HE WANTED —THERE WERE NO SLEEZY MIS-DIRECTS— if anyone in the subscriber base wants to have a look the link is below. http://www.youtube.com/watch?v=oO2yT0uBQbM PS—rumor has it that “RANK AND FILE” US military operating both in Afghanistan and in Pakistan when they search both dead and captured Taliban fighters on both sides of the Afghanistan-Pakistan border are “FINDING” ammunition in their ammunition pouches that by fortuitous co-incidence happens to be of— “CIA ISSUE”—so the deployed military in the subscriber base might want to keep an eye on the “EMBEDED” CIA weasels in their ranks to make sure they are not playing a “DOUBLE GAME”—where our guys are being “MALISCIOUSLY” killed by 3rd party “CIA friendly fire”—pun intended. PS-rumor has it that the so called “TAMIL TIGERS” are completely the invention of the CIA and MI-6—and were brought into existence in the aftermath of a very successful non aligned nations conference that occurred in Sri Lanka in 1976—where the consensus was that they would no longer be suckered into “A SYSTEM OF FORCED LOANS”—WHERE THE IMF COMPLETELY GUTS THEM OF ALL SOVEREIGNTY— which are the bedrock of ANGLO-AMERICAN COLONIALISM—in reaction to which the Wall Street and City of London illuminists decided to give the majority Buddhist Sri Lankan population a Hindu problem—this Hindu problem became the so called “TAMIL TIGERS” —it was these so called “TAMIL TIGERS” that were the first to use suicide bombers and in particular female suicide bombers—which since then have been copied by every CIA—MI-6 CRONY CAPITALISM INSUREGENCY GROUP IN THE WORLD-- which resulted in approx 75,000 Buddhists deaths over the course of the approximate 30 years of conflict—rumor has it that the CIA-MI-6—brought in “TAMIL TIGERS” Hindu suicide bombers to do the hit on Rajiv Gandi—the illuminists do not want there to be any competent 3rd world leaders—the “TAMIL TIGERS” are now in the dustbin of history—which is “PROOF OF CONCEPT” to every other national gov’t world wide that if they want to get rid of their own colonial occupiers they need to crush all these “FAKE” CIA-MI-6 sponsored insurengencies world wide—as a result the TAMIL TIGER WIPE OUT—the Pakistan regular army very recently almost wiped out MOST the so called “TALIBAN” inside Pakistan —illuminists like Brezinski and Soros love the Taliban because—THEY HAVE A CROGENIC AFFECT ON ALL INDUSTRIAL DEVELOPMENT— they keep everyone else out—they keep the Russians out—they keep the Chinese out—they keep the Iranians out—the illuminists do not want anyone giving national governments in resource rich countries any 50-50-WIN-WIN— type development deals—as per your constant reporting in the IF and on the radio—the illuminists are scared and desperate—and that is why they very recently held that “DESPERATE DEMAGOGUES”—the Tamil Tiger wipe out was total inspiration to nation states everywhere—which has totally infuriated British foreign secretary David Milliband who has been going around— “BLEETING”—“oh this is a humanitarian catastrophe—I must arrange a cease fire”—which has resulted in demonstrations all around Sri Lanka against Milliband as a “friend and protector” of terrorists and a mouth piece for terrorists”—Milliband —and his “ZIONIST CORELIGIONIST”—Bernie Kuchner—who is Sarkozy’s foreign minister &founder of “doctors without borders”—both Bernie Kuchner and David Milliband who are both HARD CORE UNCLE TOM TYPE Wall Street and City of London IMPERIALST OPERATIVES— tried to do a joint intervention with
the Sri Lankan government on behalf of the Tigers—“let us go to the front and try to arrange some kind of a cease fire”— which the Sri Lankan governmentt denied saying— “butt out”— this is our internal affair—as per your constant reporting in the IF and on the radio—the illuminists are being consumed by their own chaos—the illuminists might want to mediate upon what happened to their Wall Street and City of London darling— Communist leader Nicolae Ceausescu who was toppled and executed in the streets in a bloody “COUNTER REVOLUTION AGAINST PERMANENT WORLD REVOLUTION” type uprising in ROMANIA in December 1989—THAT WAS ONLY 20 YEARS AGO. ***** COMMODITIES DOE reports crude oil inventories off 5.41 m/b; gas fell 537,000 barrels and distillates rose 248,000. Natural gas inventories rose 106 bcf. Gold ended the week up 2.3% to $979 (up 11% y-t-d). Silver jumped 4.9% to $15.69 (up 38.3% y-t-d). July Crude surged $4.67 (2-wk gain of $9.45) to $66.45 (up 30% y-t-d). June Gasoline rose 4.9% (up 82% y-t-d), and June Natural Gas jumped 6.5% (down 31% y-t-d). Copper rallied 4.0% (up 49% y-t-d). July Wheat surged 6.1% (up 0.3% y-t-d), and July Corn gained 3.1% (up 5.7% y-t-d). The CRB index jumped 3.7% (up 10.2% y-t-d). The Goldman Sachs Commodities Index (GSCI) surged 5.5% (up 26.9% y-t-d). GOLD, SILVER, PLATINUM AND PALLADIUM On Wednesday spot gold was unchanged at $953, as silver rose $0.17 to $14.86. The outside contract fell $3.80 in low volume and silver was close to the spot close. Spot and July silver are trading close. There are 118 contracts up for May delivery. It will be very interesting to see how many take delivery. One of the givens presently is that most of the gold and silver inventory on Comex is a fraud and the holdings at GLD and SLV are totally fraudulent. We are looking at the next Madoff or Enron scandal. Gold OI rose 202 to 396,965 as silver OI rose 1,351 to 98,120. The XAU lost 2.50 to 148.99 and the HUI fell 6.16 to 370.16. The yen fell .0022 to $.9516; the euro fell .0065 to $1.3918; the pound rose .0116 to $1.6040; the Swiss franc fell .0065 to $1.0818; the Canadian dollar rose .0026 to $.8973 and the USDX, dollar index, Rose .67 to 80/80. Oil rose $0.50 to $62.95; gas rose $0.02 to $1.84 and natural gas $0.01 to $3.64. Copper fell $0.05 to $2.09; platinum fell $3.40 to $1,136, as palladium fell $6.55 to $225.00. The CRB rose 1.02 to 246.46. The Dow gave back almost all of yesterday’s gains, off 173 to 8,300; S&P fell 155 and Nasdaq fell 116 Dow points. The 2-year yielded 0.96%; the 10’s yielded3.71%; 1-month Libor was 0.32% and the 3-month was 0.67%. Early Thursday saw the Dow up 16 at 8,313; S&P up 20; Nasdaq up 22 and the FTSE off 99 Dow points. The yen was off .0119; the euro was up .0049; the pound was off .0004. The 2-year was 0.96% and the 10’s were 3.67%. Oil rose $0.04; gas fell $0.02 and natural gas rose $0.01. Gold was down $1.60 to $951.70; silver rose $0.04 to $14.91 and copper fell $0.01 to $2.12. Thursday was another good day for gold and silver. Spot gold rose $8.30 to $961.30 and silver jumped $0.30 to $15.16. The June contract in gold rose $5.10
giving us a $3.20 discrepancy and July silver rose $0.28. the XAU was up 6.29 to 155.34 and the HUI leaped 15.36 to 385.51. AEM rose 6.29%, or $3.49 to $58.96; GG rose 2.86%, or $1.08 to $38.78; SSRI rose 11.75%, or $2.44 to $23.21 and MFN rose 1.61%, or $0.14 to $9.09. There are rumors that the Chinese are in the gold and silver markets on the long side to put pressure on Timothy Geithner as he travels to China. Today the cartel tried to hit the market at the close, but buyers were waiting to stop them. Gold open interest rose 1,341 contracts to 398,303, as silver OI rose 2,535 to 100,665, a new contract high. They’d need 45,000 additional long silver contracts to match the old high. There were 54 delivery notices in gold for May contract bringing the total to 1,555 or 155,550 ounces. Silver had 18 or 3,954 on the month for 20 million ounces. The yen fell .0183 to $.9685; the euro rose .0042 to $1.3960; the pound fell .0088 to $1.5952; the Swiss franc rose .0029 to $1.0834; the Canadian dollar rose .0007 to $.8980 and the dollar index rose .19 to 80.52. Oil rose $1.30 to $64.74; gas rose $0.01 to $1.87; natural gas rose $0.32 to $3.95. Copper rose $0.02 to $2.14; platinum rose $5.90 to $1,147 and palladium rose $5.95 to $232.50. The CRB index rose 3.37% to 249.88. The Dow rose 104 to 8,403; S&P rose 124 and Nasdaq 124 Dow points. The 2year yielded 0.97% and the 10-year was 3.65%. Early Friday the “Plunge Protection Team struggled to keep the Dow from drowning. The Dow rose 47 to 8,431; S&P rose 52 Nasdaq 62 and the FTSE was up 94. The Nikkei gained 71 to 9522; the CAC rose 43 and the DAX was up 60. The 2year was 0.95%; the 10’s 3.61%, on-month Libor 0.32% and 3-month 0.67%. Oil rose $1.09 to $66.16; gas gained $0.02 to $1.93 and natural gas was up $0.11 to $4.06. The big gains were in currencies. The yen rose .0107 to $.9573; the euro was up 0.173 to $1.4112 and the pound rose .0236 to $1.6169. Gold rose $14.00 to $975.50, silver gained $0.39 to $15.54 and copper rose $0.06 to $2.19. On Friday spot gold rose $17.60 to $978.90, as silver rose $0.47 to $15.63. The outside months were almost exactly the same. Normally Monday is not a good day for gold, but we believe gold and silver will be up. The dollar really got banged around again. The spot USDX was 79.33, off 1.13, but the outside month was 78.22 minus 1.21. The yen rose .0187 to $9512; the euro rose .0172 to $1.4137; the pound rose .0187 to $1.6109; the Swiss franc rose .0108 to $1.0674; the Canadian dollar rose 0.164 to $.9140. Remember we called the top at 89.50 and said short. The Fed pushed the 10-year notes down again. Two days ago the yield was 3.77% interday, on Thursday it was 3.65% and today it closed at 2.46% - an exercise of futility. They were 0.92% down from 0.95%. One-month Libor was 0.32% and the 3month was 0.66%. Ten-year notes should be yielding at least 5%. The Fed is doing more “quantitative easing” normally called monetization. The Fed says they are not trying to lower interest rates; they are supporting credit markets. They again are liars. The Fed is losing the battle big time and when the bottom falls out the dollar will be 40 on the USDX, interest rates will be 20%, and gold will be $7,000 and silver $200. Many loans are going to fall out with higher rates, The home and commercial real estate inventory could be large for 5 or 10 more years in spite of lower prices. Worse yet, China wants a strong dollar and it is impossible. They had best buy more gold and silver and dump some more dollars. The Chinese are going to be furious when they are told this weekend that another blitz of monetization and stimulus is on the way. Gold open interest fell 6,536 contracts to 391,770 probably due to short covering. Silver OI rose 1,918 to 102,573. The commercials, gluttons for punishment
as they are, increased net shorts by 20,206 contracts. This market in gold and silver is going to roar. Rob Kirby’s recent article on gold exports from the US proves the Treasury surreptitiously is exporting coin melt, which is probably all the gold they have left. It is no wonder Germany has demanded their gold back. Oil rose $1.52 to $66.60, gas rose $0.03 to $1.90 and natural gas fell $0.08 to $3.88. Copper rose $0.06 to $2.20; platinum rose $43.20 to $1,193 and palladium rose $4.70 to $236.70. The CRB index rose 3.22 to 253.05, up the most this month in 30 years. The Swiss do not have a VAT tax on gold, but they do on silver at 7.6%. The Dow gained 3.5% this past week. S&P gained 2.6%, Nasdaq 5% and the Russell 2000, 4.8%. Cyclicals rose 4.1%; transports 6.1%; banks 4.6%; broker/dealers 4%; high tech 5.3%; semis 7.7% and Internet 5.3%. Briotechs rose 4.4%, consumers 2.1% and utilities 3.3%. Gold bullion jumped $22.00 and the HUI gold share index gained 4.8%. Two-year Treasury bills fell 3 bps to 0.82%; 10-year notes increased 2 bps to 3.47%, as 10-year German bunds rose 4 bps to 3.59%. Fed credit fell $90.7 billion and foreign holdings of Treasury, Agency debt rose $14.7 billion to $2.724 trillion. Custody holdings for foreign central banks expanded at a 20.4% rate, up 18.8% yoy. Bank credit rose $7.4 billion to $9.772 trillion. Securities credit fell $9.3 billion; loans and leases jumped $16.6 billion; C&I loans fell $7.9 billion, up 2.7% yoy. Real estate loans fell $9.1 billion. Consumer loans pumped $15.2 billion and securities loans rose $13.4 billion. Other loans rose $5.2 billion. M2, narrow money supply, rose $12.2 billion, up 4.2% ytd and 9.1% yoy. Total money market fund assets rose $15.4 billion to $3.789 trillion. ***** Agnico Eagle proving up new gold reserves via directional drilling co-operation
Author: John Chadwick*
http://www.mineweb.com/mineweb/view/mineweb/en/page72558?oid=83945&sn= Detail ***** Silver Standard (SSRI-OTC) http://www.taipanpublishinggroup.com/silver-building-wealthtd052709.html?o=9630&s=10578&u=40813898&l=18660&g=189&r=Milo <http://www.taipanpublishinggroup.com/silver-building-wealthtd052709.html?o=9630&s=10578&u=40813898&l=18660&g=189& amp;r=Milo> ***** CIA Briefers Regularly Mislead Hill Intelligence Panels, Ex-Spy Charges By Jeff Stein http://blogs.cqpolitics.com/spytalk/2009/05/cia-briefers-regularly-mislead.html ` ***** How Google Earth explains the financial crisis http://blog.foreignpolicy.com/posts/2009/05/07/how_google_earth_explains_the_ financial_crisis ***** 27
Gold fever grips Chinese investors http://www.chinadaily.com.cn/bizchina/2009-05/29/content_7952537.htm ***** U.S. Gold, Going or Completely Gone? http://news.goldseek.com/GoldSeek/1243605552.php ***** Imminent Market Meltdown Spells Misery for Most; Profits for Gold Bugs http://www.bnwnewswire.com/editorial-Imminent-Market-Meltdown-Spells-Misery-forMost.html ***** DISCOUNT GOLD & SILVER TRADING 1800 375 4188 For the best in pricing and service for gold and silver coins, call Melody at 1-800375-4188. Be sure to listen to DGSTC with Bob Chapman live on Short-wave 7.415Mhz M-F 4:00PM ET, Replays Tuesday thru Friday 8pm RT 7.465Mhz 3.215 MHz M-F 11PM ET and weekly archives at discountgoldandsilvertrading.net Riding the “World’s Reserve Currency” Tiger I was listening to one of the many gold advertisements today and one made specific mention to the fact that the Chinese government was buying large amounts of gold. This made me wonder why the Chinese government would seek to substantially increase their physical gold holdings. What if, instead of the US reverting to a gold standard to save the dollar the Chinese preempt us and decide to back the Yuan with gold and announce to the world that they now are the only superpower with a gold backed currency. I think such a strategy would be praised by Sun Tzu. This would allow the Chinese to essentially decimate the dollar without taking an overtly adverse action against the US (like demanding payment on treasuries) and it would certainly make the Yuan the new global currency. What do you think? First, as I’ll explain below, I doubt that our government has any intention of “saving the dollar”. To the contrary, our government should be dedicated to destroying (or at least badly depreciating) the dollar in order to repudiate much of our unpayable debt. Second, China will not “decimate the dollar” by backing the yuan with gold. We will decimate the dollar in order to avoid paying all of our debts. More, the Chinese yuan will not “seize” the status of “world reserve currency” from the dollar. Instead, the dollar will gladly abandon that burden and encourage China to take its turn riding the “world-reserve-currency tiger”. (In fact, I wouldn’t be surprised if part of the “deal” with China is that they will be allowed to become the next world reserve currency in return for China not dumping all of their dollars right now and collapsing the U.S. economy.) I believe that gold has always been and will always be the only true "world reserve currency". After WWII the U.S. had most of the world's gold, backed its paper dollars with gold (on the international market), and paper dollars were recognized "as good as gold". That recognition was idiotic, but who cared so long as our paper dollars could be redeemed for gold—at least internationally? The fools and opportunists who
populate the world believed that our paper dollars were "as good as gold" and therefore could serve as the "world's reserve currency". However, in A.D. 1971, President Nixon closed the international gold window and the dollar was no longer backed by gold. Nevertheless, the world's fools were so accustomed to using dollars as the "world's reserve currency" (gold) that they continued to use the dollars as the "world's reserve currency" even though it was nothing but paper or electronic digits. The U.S. naturally abused the privilege of having its paper dollars recognized as the "world's reserve currency" (as if they were still "good as gold") and ran up a huge, unpayable debt. Now that the debt has grown to unpayable proportions, our government will be forced to repudidate the debt by means of 1) hyper-inflation; 2) declaring national bankruptcy; or 3) killing the creditors (WWIII). All three options will be catastrophic, but hyper-inflation will probably be the least catastrophic. Today, it appears that the total national debt owed by the federal government is at least $55 trillion. If gov-co could cause 50% inflation to occur very rapidly over a period of just 2 or 3 years, half of the current debt would be effectively repudiated. Gov-co might repay "$55 trillion," but it would repay with dollars that had only half the purchasing power of the dollars that were originally borrowed. Thanks to 50% inflation, the $55 trillion repaid might only have the purchasing power of about $27 trillion. In essence, 50% inflation would repudiate or cancel 50% of the existing (unpayable) debt. If gov-co caused 90% hyper-inflation, the facial amount ($55 trillion) of the existing debt might be paid, but it would be paid with dollars worth only ten cents as compared to their current purchasing power. Thus, 90% inflation would repudiate or cancel 90% of existing, unpayable debts. Unless gov-co is determined to see this nation burst into flames, they will probably choose to repudiate the debt with hyper-inflation. As I’ve written repeatedly since last July, I believe at least 80% and probably 90% of the total American debt (at least $75 trillion) can't be paid, won’t be paid and therefore must be somehow repudiated. If I'm right, we should see hyper-inflation adding up to 80-90% over the course of the next several years. If the gov-co opts for hyper-inflation, they must abandon the dollar's status as "world's reserve currency" and admit that the dollar is no longer "good as gold". See my point? You can't enjoy both the status as "world's reserve currency"—“good as gold,” (more or less) and the benefit (debt repudiation) of hyper-inflation. The two concepts are anathema. The "world's reserve currency" (gold or paper backed by gold) must have a (fairly) stable value. Creditors must believe that if they loan their wealth in the form of the “world’s reserve currency” that they will be repaid in full (more or less). But hyperinflation results, by definition, in a highly unstable value which causes debts to be repudiated and creditors to lose their investments. Therefore, the world’s reserve currency can’t suffer hyper-inflation. If I’m right in believing that the U.S. government will be forced to repudiate the unpayable debt by means of hyper-inflation, then that government must not only allow but even seek to be freed from the “burden” of issuing the world’s reserve currency. The U.S. dollar isn’t going to have its status as world’s reserve currency forcefully taken away by other nation. Instead, the U.S. dollar will eagerly and intentionally abandon its status as world’s reserve currency as a condition prerequisite for repudiating the unpayable debt. As you probably know, gov-co has suppressed the price of gold for a generation or so in order to maintain the illusion that the paper dollar is more or less "good as gold".
However, in order to hyper-inflate to repudiate today’s debt, gov-co must stop suppressing the price of gold. Gov-co can't try to inflate the dollar to sustain the economy (or hyper-inflate to repudiate the existing debt) and still hold gold down to $960 an ounce. In other words, in order to inflate the currency to sustain the economy—and to hyperinflate the dollar to repudiate the existing, unpayable debt—it is now in the gov-co’s interest to stop suppressing the price of gold on COMEX, and to allow and even encourage the price of gold to increase dramatically. Everyone knows that the Obama administration and “Helicopter” Ben Bernanke are committed to causing significant monetary inflation in order to prevent an economic collapse. This commitment has been evidenced by the granting billions of dollars to bankers and financiers and promising to soon inject over a trillion “instant” dollars into the economy. That being so, how can government commit to causing significant monetary inflation and simultaneously suppress the price of gold? It would be irrational to do so. So long as the dollar price of gold is low, people will believe the dollar’s value is steady and largely un-inflated. But insofar as gov-co relies on inflation to save the economy, govco must intentionally abandon the myth of dollar price stability. That means they’ve got to turn gold loose. Right now, from the perspective of everyone in gov-co who wants to inflate the dollar to sustain the economy (or hyper-inflate to repudiate the debt), gold must be allowed (even encouraged) to rise. That rise probably won’t be explosive. I don't expect gold to jump to $2,000 an ounce over the next 30 days. But so long as gov-co is determined to inflate or hyper-inflate the dollar, the price of gold must be allowed/encouraged to rise steadily and significantly. As for China, they may start backing the yuan with gold and soon allow the yuan to assume the role of "world's reserve currency" (good as gold). China will enjoy the advantages of having the "world's reserve currency" for a decade or so and then begin to exploit that advantage until they finally "close the gold window" (just like Nixon did in A.D. 1971), allow the world to feed on paper-yuans for a decade or two run up a Chinese debt until it is finally unpayable, opt for hyper-inflation to repudiate their debts and abandon their role as the "world's reserve currency". By then, Brazil, India or some other sap might be ready to take their turn at riding the world-reserve-currency tiger for another decade or two. You can bet that any nation that rides that tiger, will be financially ruined within one or two generations. My first point is that our government must now know that it must choose between repudiating most of a debt that can't possibly be paid and maintaining the illusion that we have the "world's reserve currency". They can't have both. They must choose. I have little doubt that "behind closed doors," cadres of "insiders" are already arguing the two sides. The times are desperate. We can't have deflation—that increases the purchasing power of the existing debt and guarantees a national bankruptcy. In order to sustain the economy, gov-co has chosen to inflate. To repudiate the debt they should choose to hyper-inflate. The dollar's status as "world's reserve currency" must be abandoned as quickly as possible. That status is becoming and perhaps has already become a burden rather than an asset. If we continue to embrace the worldreserve-currency status, that relationship will kill this nation. As a matter of national self-preservation, the dollar must quickly abandon its status as world’s reserve currency. If China wants to ride the world-reserve-currency tiger, let 'em try. I'll bet that if the yuan becomes the "world's reserve currency" (good as gold), it'll take about 20 years
to collapse the Chinese economy pretty much like that currency status has collapsed the U.S. economy. My second point is that there has only been and will only be one "world reserve currency": Gold. There will be paper and digital pretenders from time to time, but the only thing that's "good as gold" is gold, itself. My third point is that those of you who have gold should soon be cheering. Those of you who don’t have gold should get as much as you can carry. No one can say for sure what the price of gold will be tomorrow or next month. But I’ll bet that gold hits $1,500 (at least) within the next 12 months. Why? Because gov-co wants it to happen. Why? Because gov-co needs it to happen. Why? Because if gold goes from today’s $960 to $1,500, that would be roughly consistent with a 50% inflation rate and would result in repudiation of roughly half of the existing, unpayable debt. Of course, the true correlation between the price of gold and the “real” inflation rate is hard to predict since COMEX and the SEC have allowed the “naked short selling” of gold for a decade to artificially suppress the price of gold. The price of gold might have to be allowed to rise to $1,500 an ounce just to reflect its “true” price—and then we might add on inflation. Who can say? But—if my previous conjecture is correct that 80% to 90% of the existing debt can’t be paid and must therefore be repudiated by inflation—then over the course of the next several years, we should see a cumulative inflation of 80% to 90%. That suggests that the price of gold might be destined to increase by somewhere between 5 and 10 times over the next several years. Or maybe not. We shall see. Whatever the precise truth turns out to be, we are still headed for a bumpy ride and y’all best buckle up. Email us at: email@example.com Discount Gold & Silver Trading Co. provides all forms of precious metals including gold, silver platinum and palladium whether you are buying or selling. Our inventory includes but not limited to the American Gold, Silver, Platinum Eagle and numismatic products including rare, investment and circulated coins. Silver dollars, silver bars, rounds are on hand for the silver investor. Foreign gold is also available. Call for information regarding your precious metal gold and silver IRA. 1 800 375 4188 ***** CANADA Canadian home prices fell in March, the Teranet-National Bank National Composite House Price Index showed. Prices fell 5.8% from March 2008. From a Fellow Subscriber: Hi Bob, We taser people in Canada who are on the subway without a token and kill immigrants at the airport from Poland with tasers who don't understand what the police are yelling at them (check the net this did happen). We have the same out of control police in Canada. Just look at the psychological message of the new black uniforms, no tie and bullet proof vests and black leather gloves. Just a few years ago they wore a police hat not a stupid black ball cap, navy blue pants with a red stripe on the side, light blue shirt and tie. No bullet proof vest or billy club, no gloves and just one pistol. Now all police are dressed like swat teams all the time and armed to the teeth. We the people are
treated like their enemies. Insane Thug Cops Attack Emergency Paramedic <http://www.infowars.com/insanethug-cops-attack-emergency-paramedic/> Infowars May 28, 2009 All across the country, cops are attacking people for not responding quick enough to barked commands or for not groveling in deference to their thuggish authority. Insane and violent cops have been caught repeatedly on tape and video assaulting nonviolent citizens, tasering and even murdering them (Infowars and Prison Planet are replete with such stories). In a recent incident, Oklahoma cops pulled over an EMT vehicle and assaulted a paramedic: Full story and short video of the cops choking the EMT here: http://www.infowars.com/insane-thug-cops-attack-emergency-paramedic/ ***** EUROPE According to the latest CNBC slideshow on the “World’s biggest debtor nations“, Ireland tops the list as the most fiscally reckless nation. Ireland’s external debt as a percentage of their GDP is a staggering 811%. Their 2008 GDP was $285 billion and their total external debt as of Q4 2008 was $2.311 trillion. Russia is taking security measures as a precaution against the possibility tension over North Korea could escalate into nuclear war, news agencies quoted officials as saying on Wednesday. Interfax quoted an unnamed security source as saying a stand-off triggered by Pyongyang's nuclear test on Monday could affect the security of Russia's far eastern regions, which border North Korea. "The need has emerged for an appropriate package of precautionary measures," the source said. "We are not talking about stepping up military efforts but rather about measures in case a military conflict, perhaps with the use of nuclear weapons, flares up on the Korean Peninsula," he added. The official did not elaborate further. North Korea has responded to international condemnation of its nuclear test and a threat of new U.N. sanctions by saying it is no longer bound by an armistice signed with South Korea at the end of the 1950-53 Korean War. Itar-Tass news agency quoted a Russian Foreign Ministry official as saying the "war of nerves" over North Korea should not be allowed to grow into a military conflict, a reference to Pyongyang's decision to drop out of the armistice deal. Russian warships are due to call Wednesday, May 27, at the Bahrain port of Manama, seat of the US Fifth Fleet in the Persian Gulf, DEBKAfile's military sources reveal. They will be following in the wake of the Russian vessels already docked at the Omani port of Salalah, the first to avail themselves of facilities at Gulf ports. Their arrival is fully coordinated between the Russian and Iranian naval commands. According to our sources, this is the first time a Russian flotilla will have taken on provisions and fuel at the same Gulf ports which hitherto serviced only the US
Navy. Moscow has thus gained its first maritime foothold in the Persian Gulf. The flotilla consists of four vessels from Russia's Pacific Fleet: The submarine fighter Admiral Panteleyev is due at Manama Wednesday, escorted by the refuelingsupply ship Izhorai, The supply-battleship Irkut and the rescue craft BM-37 are already docked in Salalah. DEBKAfile's military sources report that the Russians, like the Iranians, cover their stealthy advance into new waters by apparent movements for joining the international task force combating Somali pirates. While Iranian warships have taken up positions in the Gulf of Aden, the Russians are moving naval units southeast into the Persian Gulf. Monday, May 25, the Iranian naval chief, Adm. Habibollah Sayyari, announced that six Iranian warships had been dispatched to "the international waters" of the Gulf of Aden in a "historically unprecedented move∑ to show its ability to confront any foreign threats." He did not bother to mention the pirates. Russian and Iranian naval movements in the two strategic seas are clearly synchronized at the highest levels in Tehran and Moscow. Our military analysts find Russia and Iran seizing the moment for supplanting positions held exclusively by the US and other western fleets. They are taking advantage of two developments: 1. The number of US warships maintained in the Gulf has been reduced to its lowest level in two years; President Obama quietly reduced their presence near Iran's shores in order to generate a positive atmosphere for the coming US dialogue with the Islamic Republic. Not a single US aircraft carrier is consequently to be found anywhere in the Gulf region. 2. Monday, May 25, President Nicolas Sarkozy inaugurated France's first naval facility in the Gulf in Abu Dhabi. The Russian and Iranian policy-makers see no reason why Moscow cannot set up a military presence in the region if Paris can. Belgian consumer prices fell in May for the first time in nearly 50 years, dropping 0.37% on the year after rising 0.6% in April, the country's economics ministry said Thursday. Euro Zone Economic Confidence rises to 69.3 in May Germany's plant and machinery orders slumped in April, indicating that the fall in this key industry area is ongoing. New orders were down 58% in real terms in April from the year-earlier period, industry group VDMA said Thursday. Domestic orders fell 52%, while foreign orders slumped 60%, it said. "There are no signs yet that the downturn is bottoming out," VDMA chief economist Ralph Wiechers said in a statement. "It's only forward-looking indicators that offer some hope," he added. Germany's Ifo business confidence survey, purchasing managers and the ZEW economic expectations indexes have all picked up in May. In the three-month period from February to April, which balances out monthly fluctuations, total plant and machinery orders were 47% lower than in the year-earlier period. The composite index of leading indicators for the euro-zone economy rose 1.8% in April to 93.8, estimates published by the Conference Board showed Monday. This follows a 0.1% fall in March and a 0.2% fall in February, the Conference Board. The leading indicator, which comprises several forward-looking pieces of data and survey information, can show turning points in the economic cycle. Germany May Unemployment Rate s.a. decreases to 8.2% vs 8.3%.
Swedish import prices decreased by 1.3% from March to April, while export prices decreased by 1.6%. Producer prices decreased by 0.1% in the domestic market during the same period and by 0.9% when including export sales. In April the annual rate of change for import prices was 0.6%, which is lower than in March when the corresponding figure was 2.5%. Compared with April last year, producer prices have increased by 3.2%, which is a decrease from March when the twelve month rate of change was 4.8%. Broken down into domestic and export markets prices rose 0.3% and 5.9%, respectively. In March the corresponding rates of change were 1.4% for the domestic market and 8.1% for the export market. Prices for domestic supply, that is, domestic and import markets together, decreased by 0.7% between March and April. During the last year prices for domestic supply Retail trade sales increased by 3.5% in April compared to March, seasonally adjusted figures. Compared to April 2008 the increase was 5.0%. Retail trade for mostly food increased by 5.2% compared to April 2008 and retail trade for mostly durables increased by 5.0%. The decline in Spain's consumer prices accelerated more than expected in May due to lower energy prices and a sharp drop in economic activity, data from Spain's National Statistics Institute, or INE, showed Thursday. In a statement, the INE said Spain's European Union-harmonized index of consumer prices fell 0.8% on the year in May after falling by 0.2% in April and by 0.1% in March. The March decline was the first since records began in 1961. A Dow Jones Newswires survey of seven analysts had forecast a decline of 0.6% on the year for Spanish HCPI in May. The INE will release final European Union-harmonized data as well as national consumer price data for May on June 10. The European Union's statistical arm, Eurostat, will publish a preliminary estimate of May inflation for the euro zone Friday. A Dow Jones Newswires survey of 21 analysts forecast a rise of 0.2% on the year. Belgian consumer prices fell in May for the first time in nearly 50 years, dropping 0.37% on the year after rising 0.6% in April, the country's economics ministry said Thursday. Euro Zone Economic Confidence rises to 69.3 in May. Germany's plant and machinery orders slumped in April, indicating that the fall in this key industry area is ongoing. New orders were down 58% in real terms in April from the year-earlier period, industry group VDMA said Thursday. Domestic orders fell 52%, while foreign orders slumped 60%, it said. "There are no signs yet that the downturn is bottoming out," VDMA chief economist Ralph Wiechers said in a statement. "It's only forward-looking indicators that offer some hope," he added. Germany's Ifo business confidence survey, purchasing managers and the ZEW economic expectations indexes have all picked up in May. In the three-month period from February to April, which balances out monthly fluctuations, total plant and machinery orders were 47% lower than in the year-earlier period. The composite index of leading indicators for the euro-zone economy rose 1.8% in April to 93.8, estimates published by the Conference Board showed Monday. This follows a 0.1% fall in March and a 0.2% fall in February, the Conference Board. The leading indicator, which comprises several forward-looking pieces of data and survey information, can show turning points in the economic cycle. Germany May Unemployment Rate s.a. decreases to 8.2% vs 8.3%.
Swedish import prices decreased by 1.3% from March to April, while export prices decreased by 1.6%. Producer prices decreased by 0.1% in the domestic market during the same period and by 0.9% when including export sales. In April the annual rate of change for import prices was 0.6%, which is lower than in March when the corresponding figure was 2.5%. Compared with April last year, producer prices have increased by 3.2%, which is a decrease from March when the twelve month rate of change was 4.8%. Broken down into domestic and export markets prices rose 0.3% and 5.9%, respectively. In March the corresponding rates of change were 1.4% for the domestic market and 8.1% for the export market. Prices for domestic supply, that is, domestic and import markets together, decreased by 0.7% between March and April. During the last year prices for domestic supply Retail trade sales increased by 3.5% in April compared to March, seasonally adjusted figures. Compared to April 2008 the increase was 5.0%. Retail trade for mostly food increased by 5.2% compared to April 2008 and retail trade for mostly durables increased by 5.0%. The decline in Spain's consumer prices accelerated more than expected in May due to lower energy prices and a sharp drop in economic activity, data from Spain's National Statistics Institute, or INE, showed Thursday. In a statement, the INE said Spain's European Union-harmonized index of consumer prices fell 0.8% on the year in May after falling by 0.2% in April and by 0.1% in March. The March decline was the first since records began in 1961. A Dow Jones Newswires survey of seven analysts had forecast a decline of 0.6% on the year for Spanish HCPI in May. The INE will release final European Union-harmonized data as well as national consumer price data for May on June 10. The European Union's statistical arm, Eurostat, will publish a preliminary estimate of May inflation for the euro zone Friday. A Dow Jones Newswires survey of 21 analysts forecast a rise of 0.2% on the year. Credit insurers, including Euler Hermes SA, Atradius NV and Coface SA, have raised premiums by as much as 20 percent this year in Germany and may increase them more as defaults climb amid the financial crisis. ‘Credit insurers have been scrutinizing their contracts very carefully’ and raising rates, Joerg Mielke, head of credit risk at the German unit of Marsh & McLennan Cos. in Munich, said. They currently might feel like fire insurers when half of the world is on fire. Loans to households and companies in Europe grew at the slowest pace on record in April… Loans to the private sector rose 2.4% from a year earlier after increasing an annual 3.2% in March. ***** Arctic is rich in natural gas, study says http://www.boston.com/news/science/articles/2009/05/29/arctic_is_rich_in_natur al_gas_study_says/ ***** ENGLAND Net mortgage lending in Britain hit the lowest level in eight years in April while savings growth remained subdued, the British Bankers Association said Wednesday, suggesting the Bank of England's massive cash injections into the economy have yet to boost credit activity.
That was echoed in a statement by a major mortgage lender, which said it saw no decisive upturn in the housing market and that it expects mortgage and savings markets to contract in 2009-2010. The BBA said net lending was 2.7 billion pounds ($4.3 billion) in April, compared to an average of 3.4 billion pounds in the previous six months. The March figure was 3.4 billion pounds. Gross mortgage lending of 7.9 billion pounds was down from 8.7 billion pounds in March, and 52 percent below a year ago. Both the gross and net figures were the lowest since March 2001, the association said. Personal deposits were up 1.8 billion pounds, compared to a rise of 700 million pounds in March and the six-month average of 1.1 billion pounds. The value of house purchase mortgages approved edged up from 3.4 billion pounds in March to 3.5 billion pounds in April. That was 30 percent below year-ago levels Retail sales resumed their fall in May following an unexpected Easter holidayrelated bounce in April, with retailers expecting a similarly weak performance in June, a report by the Confederation of British Industry showed Thursday. But the business group's latest Distributive Trades Survey showed that other than April, May's drop in sales was the smallest for almost a year and retailers' sentiment about the general business prospects was also the least negative since November 2007. The survey's headline retail sales balance fell to -17 in May from +3 in April. The balance is the difference between the percentage of retailers reporting higher sales and those reporting lower sales. The result was weaker than the market consensus estimate of a balance of -10 from a Dow Jones Newswires survey of economists. "Retailers are less pessimistic about their general business situation, and the decline in demand now appears to be slowing compared with the turn of the year," said Ian McCafferty the CBI's chief economic adviser. "However, with unemployment still rising, conditions will remain tough." Retail sales resumed their fall in May following an unexpected Easter holidayrelated bounce in April, with retailers expecting a similarly weak performance in June, a report by the Confederation of British Industry showed Thursday. But the business group's latest Distributive Trades Survey showed that other than April, May's drop in sales was the smallest for almost a year and retailers' sentiment about the general business prospects was also the least negative since November 2007. The survey's headline retail sales balance fell to -17 in May from +3 in April. The balance is the difference between the percentage of retailers reporting higher sales and those reporting lower sales. The result was weaker than the market consensus estimate of a balance of -10 from a Dow Jones Newswires survey of economists. "Retailers are less pessimistic about their general business situation, and the decline in demand now appears to be slowing compared with the turn of the year," said Ian McCafferty the CBI's chief economic adviser. "However, with unemployment still rising, conditions will remain tough." ***** When is the revolution? – NOT SOON ENOUGH.
State recruits an army of snoopers with police-style powers http://www.dailymail.co.uk/news/article-1187568/State-recruits-army-privatesnoopers-police-style-powers.html ***** From a Fellow Subscriber: Hi Bob, As you probably know as part of the collapsing of the economy, they are going to pull the revolving credit from credit cards thus collapsing any remaining consumer spending. This being accomplished either by charging interest from point of sale and reducing or pulling credit lines. Well they have started pulling the credit lines. I received this yesterday on a business credit card account that has always been paid in full every month.. Dear Customer, Your Advanta Business Card account is funded by an independent trust which owns the balances you owe on your account and provides funding for new transactions. We expect the trust to stop funding activity on our accounts. The trust also restricts our flexibility to fund activity on your account. Unfortunately, as a result, effective May 30th all Advanta Business Credit Card accounts, including your account, will be closed. This means that you will not be able to use your card or account for new transactions, including purchases, checks and balance transfers beginning on May 30th. We understand that you may have written checks on your account before May 30th and we will make every effort to honor those checks that are presented to us for payment by June 3rd. If you use your Advanta card to make automatic recurring bill payments, you will need to make alternative arrangements for those payments promptly. It is important to understand that you are not required to pay your entire balance at this time. You may continue to pay down your account balance over time, as allowed under your Advanta Business Card Agreement. You will not lose the rewards that you have earned. If you participate in a Cash Back program, you will receive a check for the amount of any accrued rewards more than $1.00 as long as you make the required minimum payments and your account remains in good standing. If you participate in a Business Rewards program, you will have at least 60 days to redeem your points as long as you make the required minimum payments and your account remains in good standing. We deeply regret the impact this action will have on your business and very much wish it was not necessary. We are committed to assist you through this process. Additional information will be available at www.advanta.com/notice<http://advanta.r.delivery.net/r?2.1.3Lu.2lJ.11LrTy.BuSB1k..N .Chro.3Q.bW89MQ%5f%5fCVYSFOJ0> . If you have any other questions or concerns, or if we can assist you in any other way, please feel free to contact our Customer Service Center. You can email us your questions 24 hours a day at www.advanta.com/secure <http://advanta.r.delivery.net/r?2.1.3Lu.2lJ.11LrTy.BuSB1k..N.Chrq.3Q.bW89MQ%5f %5fCVeeFOL0> or call us toll free at (800) 705-7255, Monday - Friday 8:00 am to 8:00 pm and Saturday 8:00 am to 5:00 pm Eastern Time. Sincerely, *****
LATIN AMERICA Brazil's General Price Index, known as the IGP-M, dropped 0.07% in May, compared with a fall of 0.15% in April, the private Getulio Vargas Foundation said Thursday. The latest figure was in line with analysts' expectations, which ranged from a decrease of 0.07% and an increase of 0.15%. The April IGP-M figure measured prices between April 21 and May 20. The rolling IGP-M inflation rate for the 12 months through May 20 was 3.64%. Wholesale prices, which carry a 60% weighting in the overall index, were down 0.30% in May, compared with a drop of 0.44% in April. Construction costs increased 0.25% in the period, compared with a fall of 0.01% in the previous period. Construction costs are weighted at 10% of the overall index. Consumer prices, which account for 30% of the overall index, picked up 0.42% in May, compared with a rise of 0.58% in the previous month. With recent figures indicating inflation is under control and signs of an economic slowdown, Brazil's central bank cut the Selic base interest rate to 10.25% from 11.25% last month. Brazil's General Price Index, known as the IGP-M, dropped 0.07% in May, compared with a fall of 0.15% in April, the private Getulio Vargas Foundation said Thursday. The latest figure was in line with analysts' expectations, which ranged from a decrease of 0.07% and an increase of 0.15%. The April IGP-M figure measured prices between April 21 and May 20. The rolling IGP-M inflation rate for the 12 months through May 20 was 3.64%. Wholesale prices, which carry a 60% weighting in the overall index, were down 0.30% in May, compared with a drop of 0.44% in April. Construction costs increased 0.25% in the period, compared with a fall of 0.01% in the previous period. Construction costs are weighted at 10% of the overall index. Consumer prices, which account for 30% of the overall index, picked up 0.42% in May, compared with a rise of 0.58% in the previous month. With recent figures indicating inflation is under control and signs of an economic slowdown, Brazil's central bank cut the Selic base interest rate to 10.25% from 11.25% last month. Brazil posted a current account surplus for the first time in 19 months on growing demand for the country’s commodities, rising foreign investment and fewer remittances of profits and dividends abroad. ***** Free Trade With Panama: Some Winners And Some Losers http://www.coha.org/2009/05/the-panama-free-trade-agreement-separating-fact-fromfiction-and-the-good-from-the-bad/ ***** MEXICO ***** Slump Disrupts Migration http://www.washingtonpost.com/wpdyn/content/article/2009/05/28/AR2009052803429.html?wpisrc=newsletter
***** An old tradition for tough times: Money sharing http://www.azcentral.com/business/articles/2009/05/29/20090529cundinas0529.ht ml?source=nletter-business ***** CHINA Gome, the largest consumer electronic retailer in China, reported that sales fell 36% in Q4 and declined 20% y/y in Q1. This is at odds with the hype that China’s economy is doing well. ***** China warns Federal Reserve over 'printing money' By Ambrose Evans-Pritchard http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5379285/China-warnsFederal-Reserve-over-printing-money.html ***** JAPAN Japan's retail sales fell for the eight straight month in April from a year earlier, the government said Thursday, demonstrating how sluggish household spending and weak employment conditions have left a deep scar on the retail sector. The nation's retail sales slid 2.9% in April, according to the Ministry of Economy, Trade and Industry. Analysts say weaker household spending, which accounts for roughly 55% of the nation's gross domestic product, will likely persist in the coming months as companies continue to cut payrolls and production amid the nation's recession-hit economy. Sales at department stores and supermarkets slipped 6.7% on year after adjustment for the change in the number of stores - the 13th consecutive month of decline. Overall retail sales fell a revised 3.9% in March after a 5.7% contraction in February. The figures aren't adjusted for inflation Japan’s industrial output surged the most in 56 years in April as a rebound in exports helped the economy emerge from its worst recession since World War II. Production rose 5.2 percent from March, the second monthly gain, the Trade Ministry said today in Tokyo. The increase was faster than the 3.3 percent economists estimated, and companies said they planned to boost output in May and June as well. Japan's retail sales fell for the eight straight month in April from a year earlier, the government said Thursday, demonstrating how sluggish household spending and weak employment conditions have left a deep scar on the retail sector. The nation's retail sales slid 2.9% in April, according to the Ministry of Economy, Trade and Industry. Analysts say weaker household spending, which accounts for roughly 55% of the nation's gross domestic product, will likely persist in the coming months as companies continue to cut payrolls and production amid the nation's recession-hit economy. Sales at department stores and supermarkets slipped 6.7% on year after adjustment for the change in the number of stores - the 13th consecutive month of decline. Overall retail sales fell a revised 3.9% in March after a 5.7% contraction in February. The figures aren't adjusted for inflation.
The Liberal Democratic Party may abandon a bill that would set aside $520 billion to manipulate the stock market because it has risen from its recent lows. HEALTH APOCALYPSE HERBS This past week I get this call asking if I have apocalypse herbs. There is a lot a fear out there. I believe a healthy concern is better than being fearful and being prepared is not being paranoid. If you Google “apocalypse herbs” you get everything from anchovies to herbs to sprouts. The economic downturn has more people thinking about growing food and watching world events. However, it will be difficult to grow anything during a real apocalypse. Having what you need for food and medicine in “ready” form is what you will need initially when all hell breaks loose. Get the “ready” stuff taken care of first and then prep for the long-term of growing food and medicinal plants. Apothecary Herbs offers a One-Year Supply of ready-to-use herbal medicine containing over 90 products to address what ails you http://www.thepowerherbs.com. Perhaps it should be rename the apocalypse package. VICTORY GARDEN OR APOCALYPSE GARDEN? The Victory or Liberty Gardens of WWII helped feed America. The gardens contained vegetables, fruits and herbs. Americans planted everywhere - in backyards, apartment-building rooftops, vacant lots, lawns were plowed up for gardens and parks were commandeered for planting. The Americans of WWII planted in plant containers, on front porches, patios and balconies. In 1943 there were more than 20 million Victory Gardens planted across America and food from these gardens accounted for 1/3 of the vegetable consumption. We can take what was done in the past and tweak it to fit our current situation. NEW GROWING IDEAS Today it is much easier to get equipped to grow food inside. Garden web sites and catalogs offer all kinds of growing tools. One particular item I thought was handy (especially if you lived in a city or had no land to use) was a hanging tomato garden where the vegetables grew upside down (www.hangingtomato.com). New gardeners may not know what to plant. I’m often asked where to get good seeds. Look for the heirloom seeds that are not genetically modified because these foods produce seeds for replanting. For organic seeds I like www.seedsforchange.com. If you can afford it, pick up at least 20% more seeds than you think you will need. You can give them to those who have none or use them as currency. Check your climate zone to see what grows well in your location and plant what you like to eat. If you have the ability to plant elevated gardens it helps protect your plants from deer, rabbits, raccoons and floods. Many web sites have helpful instructions and growing tips. STEP BY STEP There is no need to agonize over world events and the economy if you are making preparations now. Like the wise virgins with extra oil for their lamps, you also will have the things you will need. Even if you don’t get everything you think you will need, God has a way of providing. God also has given us Valerian Root and Lobelia herb to help us relax, be less anxious and stay focused. If you believe and trust in the all-powerful God, you know He is in charge and will look after you when you ask Him. Some of my pleas for supernatural assistance include Ps 70, 71 and 91. If you are faithful to do your due diligence and ask God for help, He will provide and protect you. Great is he who believes, has hope and trusts in the Lord. 40
METAPHYSICAL MEAT When I was a budding young herbalist, I received some instruction that not everyone can embrace. I was reminded that not all things are what they appear to be. I was first told and then witnessed the power of God’s medicinal plants. I’ve come to know that herbs contain metaphysical meat. When we think of meat we think of protein and other nutrients to fuel the body. Plants don’t have quite the same reputation for sustaining the human body compared to meat. However, when we consider God’s medicinal herbs we find they contain metaphysical meat. What is metaphysical meat? I like to describe it as a super nutrition, which is so perfectly balanced it is easily metabolized and used by the body. Restoration of a house is a lot easier when you have skilled workers with the right tools and quality materials. Take away the skill or the right tools and the repair will suffer. I equate the same is true when using herbs to restore the human body. You will want the best herbs (tools) and instruction (skill) to use them. FINISHING THE RACE Remember, apocalypse is a violent struggle in which evil is destroyed. God and His people win in the end. So, get your “stuff” together to sustain you and make your restoration plan contain the right herbs and instructions for use. Call Apothecary Herbs 866-229-3663, International 704-875-8010 or online http://www.thepowerherbs.com for Valerian Root, Relaxation Formula or Emotional Stress Formula to help keep you calm. Don’t forget they have a One-Year Supply herb package with over 90 powerful herb formulas and the Power Herb Kit (a nice starter kit) and the Pandemic Kit for emergencies. They also have emergency dehydrated food entrees in the stand-up pouches. Organ Cleanses are also their specialty and they offer alternative herbal formulas instead of using the “for life” drugs. Our ancestors of WWII didn’t have a skilled apothecary shop at their fingertips and they had to manage on their own. Fortunately you don’t have to worry – you have Apothecary Herbs. Call them now and empower yourself! OUR VERSION OF THE ECONOMIC STIMULUS – Apothecary Herbs is offering 15% off your total order before shipping when you print off your shopping cart order online or fill out the catalog order form and mail in your order with your check or money order. Get prepared, healthy and save – what could be better than that? International orders can send an International Money Order and save 15%. Apothecary Herbs, P.O. Box 918, Huntersville, NC 28070 USA. YEAR’S SUPPLY OF HERBAL MEDICINE – Stock up with over 90 products designed to protect your immune system, cleanse the body and address what ails you. NOW SAVE 15% on this package with the STIMULUS DISCOUNT. Call Apothecary Herbs 866-229-3663, International 704-875-8010 http://www.thepowerherbs.com UPGRADED PANDEMIC KIT – Call Apothecary Herbs 866-229-3663, International 704-875-8010 or http://www.thepowerherbs.com each kit contains 8 products for 2 adults for 10-day pandemic just $175.00. ***NEW***APOTHECARY HERBS – Weight Control Kit helps you safely lose weight. Male & Female Organ Cleanse Packages – get all your important organ cleanses in one convenient package. Call now 866-229-3663, International 704-875-8010 http://www.thepowerherbs.com.
“NEW” at Apothecary Herbs - Portuguese Sea Salt® - imported from the traditional salterns (a 2000-year tradition) along the coast of Algarve, Portugal. Salt crystals are harvested by hand and sun-dried. This is a true artisan sea salt providing richness as well as a smooth and elegant flavor to food. 1/2 pound ground unrefined Portuguese Sea Salt® just $8.50. HERBS FOR PETS - Dog & Cat Immune Booster Formulas plus Dog & Cat Congestion Formulas plus toxic-free flea and tick collars, shampoo and spray at Apothecary Herbs. Call now toll free 866-229-3663, International 704-875-8010 or http://www.thepowerherbs.com. SURVIVAL ITEMS – STAND-UP FOOD POUCHES (NOW SAVE 15% CALL NOW) Order your convenient and compact, dehydrated food in the stand-up pouch for food emergencies or recreational camping. Light weight food pouches have a long shelf life, are easy to store for your rainy day food shortages and don’t cost a lot to ship. We have several meals to choose from in single and double serving sizes to avoid waste. Mix and serve in the stand-up pouch and avoid the need for extra utensils and cleanup. Order single serving or double serving meals by the case and for a hot meal, don’t forget the reusable Flameless Oven for just $13.00. Call Apothecary Herbs 866229-3663, International 704-875-8010 or order online http://www.thepowerherbs.com. HERB TALK LIVE – with Herbalist Wendy Wilson every Tuesday & Thursday at 7:00 pm EST on AVR www.theamericanvoice.com and Thursday at 4:00 pm on WBCQ 7.415 and Saturday 7:00 am on GCN www.gcnlive.com. Free radio show archives at http://www.thepowerherbs.com #10 CANS SURVIVAL www.freezedryguy.com. FOOD – call Freeze Dry Guy 866-404-3663 or
***** Children Who Get Flu Vaccine Have Three Times Risk Of Hospitalization For Flu, Study Suggests http://www.sciencedaily.com/releases/2009/05/090519172045.htm ***** NEXT SCHEDULED ISSUES Every Wednesday and Saturday June 2009