THE INTERNATIONAL FORECASTER

SATURDAY, JUNE 20, 2009 062009(6)_IF
P. O. Box 510518, Punta Gorda, FL 33951-0518 An international financial, economic, political and social commentary. Published and Edited by: Bob Chapman

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To check out all of our radio appearances click on this link below: http://www.theinternationalforecaster.com/radio Discount Gold & Silver Trading Co.

For the best in pricing and service for gold and silver coins, call Melody at 1-800-3754188. Be sure to listen to DGSTC with Bob Chapman live on Short-wave 7.415Mhz M-F 4:00PM ET, Replays Tuesday thru Friday 8pm RT 7.465Mhz 3.215 MHz M-F 11PM ET and weekly archives at discountgoldandsilvertrading.net JOHN STADTMILLER – Republic Broadcasting Network www.republicbroadcasting.org – every Tues. at
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PAT GORMAN – Sunday June 5. 20009 Stephen Lendman – July 15, 2009
ALEX JONES - GCN.live.com -Noon on shortwave 1st hour: WWCR 9.985 and 2nd & 3rd Hour: Every Friday – noon CST. WWCR 9975 - Here are some of the recent Alex Jones shows that Bob has appeared on. Mon thru Fri Noon to 4 pm EST, 12160

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http://www.youtube.com/watch?v=JIQ1Qrv_AUE RAYELAN ALLAN – Every first and third Wednesday in June. BUTCH PAUGH – Wednesday, June 24th, 2009 9 p.m. EST - Also on your computer on www.gcnlive.com <http://www.gcnlive.com/> . LIVE FM STATIONS 9:00 PM EST.-88.3 FM ROTX Campbell, TX- 92.7 FM Lexingon TN-102.9 FM in Lutz, FL-89.7 FM Nettie, WV-89.7 FM North Branch, MN-91.9 FM Kerrville, TX97.5 FM Dallas, TX-91.1 FM Austin, TX-97.5-91.1 FM Austin, TX-91.7 FM Fredericksburg, TX-91.7 FM Johnson City, TX-90.1 FM Round Rock, TX-90.1 FM Austin, TX-96.3 FM Austin, TX-95.7 FM Dallas, TX93.3 FM Valparaiso, IN-90.7 & 88.5 FM Cosby, TN-88.3 FM Meadsville, PA-100.3 FM Kamia, ID-89.7 FM Presque Isle ME-97.7 FM Greenville, SC-107.1 FM Oklahoma City, OK-90.1 FM Gatlinburg, TN-102.7 FM Tampa, FL-KGGM 93.5 FM Delhi, LA LIVE AM STATIONS 9:00 EST.-WIJD 1270 AM Mobile, AL, KIOU 1480 AM Shreveport, LA,WFAM 1050 AM Augusta, GA-WELP 1360 AM Greenville, SC-WCPC 940 AM Tupelo, MS-WROL 1340 Providence, RI-WITK 1550 AM in Scranton/Wilkesboro, PA-WNNY 1090 AM Pensacola, FL-WARL 1320 AM Attleboro, MA-1380 WLRM AM Chattanooga, TN-WYYC 1250 AM York, PAWNVY 1070 AM Pensacola, FL-KGEZ 1600 AM Kalispell, MT REBROADCAST FM STATIONS- 91.9 FM Macon, GA 7:00 AM-91.9 FM Freedom radio Jones City, GA 8:00 AM Est. REBROADCAST AM STATIONS-KCKN AM 1020 Roswell, NM 10 PM Est.-KMET 1490 AM 11 AM Pst. - WASB 1590 AM Brockport, NY 5-6 PM Est.- WRSB 1310 AM Canandaigua, NY 5-6 PM Est.-WBCR 1470 AM in Alcoa, TN 78 AM Est.-WVOG 600 AM New Orleans, LA 5:00 PM Est. ALAN STANG: radio show, The Sting of Stang, airs from 11 a.m. to 1 p.m. Central, M-F, via Republic Broadcasting Network. Call him on the air at (800) 313-9443. To listen, go to republicbroadcasting.org and click on Listen Live. If you can't listen at that time, do so via the archives. I'll be talking about the various manifestations of the conspiracy for world government, its tactics, such as the illegal alien invasion, its purposes and its players, from Jorge W. Boosh on down.] ERSKINE: Thursday, - every 3rd Thursday – 2:00 pm CST GCN.live.com Drew Raines: - Every Thursday

Those of you interested in the latest input concerning the world financial interest and what to do during these times of financial unrest . TODAY AND EVERY THRUSDAY we have for your pleasure Mr. Bob Chapman founder/editor of "The International Forecaster" http://www.theinternationalforecaster.com 4pm-5pm Chicago time zone USA listen live www.amd.elequity.com "Clilck on "Current Show / Listen Live" this show is accessible as current show for 20 hours after production and on demand from the archive direct link and as "Archives & on Demand" any Thursday date is Mr. Bob Chapman's show. *** all shows are FREE to access & download *** 2nd Hour Colorado, Al and Drew discuss the perspective of News & Events around the world and the attacks on our Constitutional Rights to live in Liberty growing our Organic Foods and Herbs for our safety & our health also available on 11 international phone bridges around the world USA: 347-308-8047 -bridge code 48334. Drew can be reached at 501-565-1833.
http://www.youtube.com/watch?v=hesYUFCe2_U GNC-LIVE FREQUENCIES: http://www.gcnlive.com/Schedule_Shortwave.html KEVIN GALLAGHER & John McGowan – Every first Friday at 9 pm EST. Bruce McDonald - The Politics of Common Sense: 6-8 p.m. CST

bruce@kickthemallout.com

Rob Johnson – on Pappas Telecommunications’ -840 KMPH. Stockton/Modesto, CA – June 9th and June 25th. – and July 14th and July 30th.
Lets Get Real With Reuben Torres " is an open forum where topics on politics, immigration, health, education, and other global issues, that affect our country and the world at large, are discussed and debated at local, national, and global levels. "Lets Get Real With Reuben Torres "airs every Tuesday evening from 9:00 pm to 10:00 pm unless otherwise noted. - Next appearance: June 23rd

Farren Shoaf –June 9th, 2009–The Real News Radio
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Radio Liberty part 1 <http://www.youtube.com/watch?v=lZRH2CtEu2k> RBN Part 1 <http://www.youtube.com/watch?v=iZ-aBsFdJpY> http://www.youtube.com/user/TheBobChapmanChannel http://www.youtube.com/watch?v=cYjLAgKfLrM
For a Few Bailout's More http://www.youtube.com/watch?v=qq8-HydyftA&feature=channel_page

Billions more needed for financial rescue http://www.youtube.com/watch?v=3lLkq7P2BXM&feature=channel_page http://www.clipser.com/profile.php?member=TheBobChapmanChannel Our show with; Stephen Lendman - Easy to download the program. Go to Republic Broadcasting.org, then archives, then login User ID - stephen lendman Password - 817sl ***** SCHEDULED ISSUES Every Wednesday and Saturday June 2009 US MARKETS As Emperor Obama (Romulus the Usurper) fires GM's CEO, steals money from Chrysler's bondholders, puts together Public-Private Investment Partnerships (PPIP's) that will privatize gains and socialize losses in an attempt to stabilize derivative prices by having banks buy their toxic waste from one another in the usual "smoke and mirror" tradition of Wall Street, and creates what currently is an annualized 1.8 trillion dollar federal budget deficit that will grow exponentially over time to finance zombie banker bailouts, to fascistically nationalize the financial, insurance and auto manufacturing industries, and to provide inane, flash-in-the-pan, socialistic spending programs (euphemistically called "stimulus packages" that will do little or nothing to stimulate production or to create permanent jobs), while simultaneously supporting the Fed's actions, which amount to little more than using chewing gum and bailing wire to keep the money and credit markets from collapsing as it creates and distributes, in arrogant, secretive, crony-capitalist fashion, a gargantuan pile of counterfeit monopoly money in an amount on par with total US GDP for an entire year, you can just sense and feel that there is now a runaway, hyperinflationary freight train rumbling down the tracks at ever greater speed that is soon going to derail and create a train wreck out of our economy. Since hyperinflation is clearly in our future, let's talk about what inflation really is, what causes it, what the different degrees or levels of inflation are, and what it takes to put a stop to inflation? By modern definitions, inflation is basically an overall increase in the prices charged for goods and services in a particular economy over time. This is a pretty simple concept, but there is some real confusion as to what the root cause of inflation is. It does not come from people willy-nilly charging more for their goods and services. People can raise prices all they like, but if there is not enough money and credit available to purchase their goods and services at the prices they are charging, they will eventually have to either lower their prices, or expect to make far fewer sales.

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What you have witnessed for the past two years is the above concept in overdrive, especially in the real estate and automobile markets, as the supply of money and credit has greatly contracted for all but the anointed Illuminist institutions that are parking their profits and bailout money at interest with the Fed for fear that they might lend it out to a zombie financial institution or business corporation and never get it back. As their money is sidelined with the Fed to sterilize it (i.e. to keep it from stoking inflation) the smaller fry who depend on them for their supply of financial capital are being allowed to die of money and credit starvation so the anointed can purchase the most valuable parts of their financial carcasses at pennies on the dollar via bankruptcy auctions and fire-sales in a blatant attempt to eliminate their competition and consolidate their power. This deflationary contraction in the supply of money and credit due to the exposed loan, mortgage and derivative fraud is a strong undertow to our economy which threatens to drag it out to sea until it runs out of air and drowns. The Fed must therefore inflate and swim for shore, or die. And inflate they will. We can absolutely guarantee it. Obama will go down in history as the King of Stagflation, as he joins forces with the inimitable Gordon Brown, the King of FireSale Gold. On a microeconomic scale, prices for specific goods and services are usually set by supply and demand (that, of course, would be in a free economy which we no longer have, so manipulation becomes an input for pricing specific goods and services in our economy, and is sometimes even the main input, as with gold and silver prices). However, the microeconomic factors which determine prices for goods and services are by far trumped by the macroeconomic factors of supply and demand. The supply side on a macroeconomic scale is determined by the amount of goods and services that are produced for sale in the overall economy. The demand side on a macroeconomic scale is the amount of money and credit available to the overall economy with which those goods and services can be purchased, or expressed another way, the amount of money and credit that is available to chase after those goods and services. This is why the price of gold and silver must eventually skyrocket. The microeconomic supply, demand and manipulation factors which currently have sway over gold and silver prices will eventually be trumped by the macroeconomic factors, namely, a profligate increase in the supply of money and credit to unheard of levels which will drive prices up across the board. The Fed cannot suppress the price of all goods and services as it rampantly expands the supply of money and credit, and can only influence a chosen few, such as gold and silver, which are suppressed because they are the canaries in the coal mine. When everything else gets more expensive, and as fiat currencies are shown to be the "worthless paper" they really are, gold and silver will become the only real safe-havens from the resulting inflation and financial deterioration. That will then generate a demand for precious metals that is so great, it will drive the price of gold and silver up until they catch up with the overall supply of money and credit, and there is nothing the Fed can do to stop it, short of pulling the plug on money and credit and destroying our economy, along with the privately owned Fed itself and its Illuminist cronies with it. This eventual destruction is planned to be sure, in order to pave the way for a one world Orwellian police state. The trick for the Illuminists is how to get out of their paper assets and convert them to real assets on the cheap before pulling the plug on money and credit. The problem is that as they bail out of paper, and into tangible assets, along with other foreign creditor nations anxious to trade their "worthless paper" in for things of real value, their bailing activities will drive inflation, and the price of gold, silver and other tangible assets, to unheard of levels, thereby dramatically decreasing the amount of tangible assets that they can

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absorb with their dollar reserves and their sales proceeds from the dumping of paper assets. The US and its creditors will be competing with one another in the race to dump dollar-denominated paper assets in exchange for precious metals, commodities, real estate, factories and equipment and other tangible assets, as well as shares in companies which own such assets, including shares in gold and silver producers. The obvious answer is, of course, that they can't pull this off on the cheap, and they will use the resulting hyperinflation to wreck the rest of the economy while they are desperately attempting to bail out of dollar-denominated paper assets behind everyone's backs, as part of their Big Sting Two criminal enterprise. They will attempt to accomplish this insider trading scam in secret through unregulated dark pools of liquidity such as Project Turquoise and Baikal, as well as through the unregulated gambling casino which some dare to call the OTC derivatives market. They will use their sales proceeds to buy all the real, tangible assets they can get their hands on and leave everyone else holding a bag full of "worthless paper," aka Federal Reserve notes, US Treasury bonds and GSE bonds. But the amount of "worthless paper" is so great, and there are so many substantial players who will be trying to do the same thing, that market chaos will result, and the paper assets will deteriorate, and the price of tangible assets will simultaneously appreciate, at a rate that leaves everyone breathless. Truly, this will be a situation where he who loses the least, and he who buys gold and silver and their related shares early on, are the ultimate winners. The biggest losers will be those who fail to take physical delivery of their precious metals, such as gold and silver ETF shareholders and holders of mint certificates, who will be thoroughly Madoff'd, as well as holders of any leveraged gold and silver futures positions who will be wiped out by manipulations before the final run-up, thus losing all their investment capital. The elitist oligarchs who run America, Canada and Western Europe and their privately owned central banks own tens of thousands of tons of gold already, and will seek to take the proceeds from the sale of their paper assets and use them to increase their gold holdings in an attempt to maintain monetary dominance over major players like China and Russia, who will also attempt to add to their holdings by many thousands of tons. There is only so much gold to go around, and when all the big players become gold bugs themselves, gold, and also silver, will go ballistic. They want the gold mine (literally), while you get the shaft. That is, has been, and always will be, "The Plan." Bernanke and Geithner are now Obama's twin Tattoo's, with our apologies to the producers of "Fantasy Island," a show which has become a perfect metaphor for what the US economy with its so-called "Green Shoots" has become. De plan, boss, de plan. De plan indeed. On a technical macroeconomic basis, an economy suffers from inflation when the amount of its total money and credit available over a period of time (the demand) grows at a rate in excess of the rate of growth in its total value of goods and services produced over that period of time (the supply), which valuation is based on price levels in effect at the beginning of that period of time. In more simple terms, inflation occurs when the rate of expansion of the supply of money and credit exceeds the rate of expansion in the production of goods and services. In fact, in the past when we still had a modicum of integrity in measuring economic statistics, inflation was defined as an increase in the supply of money and credit, period. Higher prices were simply a symptom of inflation, not a definition of inflation. The supply of money and credit was what was inflated, not the prices of goods and services, which simply rose as a direct outcome of the inflated supply of money and credit.

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Since central banks are currently in control of the supply of money and credit in most modern economies, it is the bankster-gangsters who are, ergo, solely responsible for any overall increases in inflation, and that goes double for any large increases. In the US, the privately owned Fed plays the role of our central bank, and it presides over our nefarious banking system, which is a fiat-money, debt-based, European form of fractional reserve banking that once powered the British mercantilist system. All major US inflationary issues and debacles can therefore be squarely placed at the doorsteps of the Fed, and of our Treasury Department, which is little more than a doormat for the Fed, which together with Wall Street, runs a revolving door with the Treasury. In fact, our current Treasury Secretary is the former President of the New York branch of the Federal Reserve Bank. So much for checks and balances and avoidance of conflicts of interest. We now have the Fed increasing total money and credit (M3) at a rate of 18% while our GDP is contracting at a rate of minus 6%. That is a 24% differential, and that means that the amount of goods and services being produced has an evergrowing supply of money chasing after it, money and credit that is growing at a pace that is 24% more than the pace at which goods and services are growing. Based on all the foregoing, we'll give you three guesses as to what the outcome will be somewhere down the road when the Fed's ever-burgeoning money blob starts chasing after a shrinking supply of goods and services. Inflation comes in basically three varieties. Normal inflation, which is basically harmless, is a temporary increase in prices caused by an increase in the supply of money and credit by the central bank which is intended to precisely anticipate the rate of growth in the production of goods and services. You have more money and credit, but you also have more goods and services being produced. The temporary bout of minimal inflation caused by the anticipatory increase in the supply of money and credit is offset or absorbed by the greater pile of goods and services that is accumulating, so prices remain stable over time. This is obviously not an exact science, so there are some up-ticks if the money supply grows a little too fast, but over time this can be corrected. It is best to overshoot a little so as not to start an economic contraction, which, if left unchecked, could lead to a recession or depression. The next type of inflation we would characterize as elevated inflation. This is what we have currently at a rate of about 10% and growing. This type of inflation results where the central bank consistently grows money and credit at a rate far in excess of the rate of growth in the production of goods and services, measured in terms of GDP growth, over an extended period of time. What the Illuminati have done for over 20 years now, was to have the Fed, which they privately own, raise the level of growth in the supply of money and credit to ludicrous levels, while they simultaneously ordered their lackeys at the BLS to lie about the rate of the resulting inflation by using hedonics (statistical manipulations) that were intended to greatly understate inflation. As a result, when real GDP was calculated, the GDP deflator, which is based substantially on the official (and falsely low) rate of inflation, and which is used to calculate real GDP, was obviously far too low. This farce resulted in higher levels of real GDP than were warranted by the data, because inflation was not being properly taken into account. This is how they covered up the destruction of our economy via free trade, globalization, off-shoring and outsourcing, along with both legal and illegal immigration (slave labor). If the true figures were used, our real GDP would show that the rate of growth in our economy has been virtually flat to negative since 1990. That means all the growth in our stock markets since the early 1990's has been nothing but false puffery, which resulted from profligate growth in the supply of money and credit, and

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not from growth in production. For this reason, when the Dow finally bottoms, we expect it to track back to its levels during the early 1990's, which means roughly 2,500 to 3,500. That level will destroy everything, especially the wealth of our middle class, but the elitists themselves are going to take it on the chin. They are afraid the system will implode before they can bail, and that they will go down with the ship also. We wholeheartedly confirm their fears. The Illuminati are about to learn a hard lesson: Hell hath no fury like an American deceitfully parted from his money!!! These unfortunate souls now risk being torn to shreds by rabid mobs using their bare hands. They have gone way beyond tar and feathers this time, or a humane execution. A large portion of the American people will not go into their internment camps, but will instead expend their last breath and bullets tracking these miscreants down like dogs. They will be chased relentlessly to the utter ends of the earth until they are systematically and utterly destroyed. You can run, but you can't hide, from angry Americans robbed of their health and their wealth. If they try to hide in their bunkers, Americans will get small nukes from our nuclear arsenal and our patriotic soldiers, or from the Russians or Chinese, drill a hole down into their lair, drop the warhead down, and detonate it in their rabbit hole. They'll go out in a blaze of glory! Have you really thought this thing through, morons? The final type of inflation is what we would call hyperinflation. This is the nightmarish stuff which destroyed Germany's Weimar Republic and Zimbabwe. But you don't get to hyperinflation by having the government simply increase spending. You cannot attain million percent and billion percent inflation through government spending alone, as they could never spend money at such levels under normal circumstances to fight a run-of-the-mill recession or depression. No, to get this type of runaway inflation, or hyperinflation, requires two ingredients. The first ingredient is currency speculators. And the second ingredient is a central bank that is corrupt enough, or moronic enough, to print as much money as those speculators demand, creating a carry trade in that currency that destroys it in hyperbolic fashion. This is what really destroyed the German and Zimbabwean currencies utterly. The speculators are loaned currency from the central bank, which they sell short into the international currency market for stronger currencies in anticipation of further declines. They keep borrowing money as long as the central bank cooperates and prints it, thus driving down the value of the currency ad nauseam. It's like being able to have your own self-fulfilling prophecy. In the case of Germany's Weimar Republic, and the rise of Hitler to power, we see the shadowy hands of the US and European Illuminists all over this situation. Hitler was more of a madman than a genius. The genius part came from the US and European Illuminists who sponsored, supported and aided Hitler in resurrecting Germany as a militaristic police state so we could have a second world war to take us out of the Illuminist-created Great Depression. They told Hitler that they would destroy the German mark to break Germany out of the clutches of the admittedly onerous and disgusting Treaty of Versailles, which required Germany to make reparations to Allied nations in amounts that were impossible for a country destroyed in a world war to manage. Germany would pay their reparations with increasingly debauched German marks. (Does this not sound familiar with what the Fed and US Treasury are up to as they debauch the dollar in a stealth default on their debts to international creditors? Looks like they are taking another page out of Hitler's Nazi playbook, which they originally wrote for Hitler). The Illuminists, on their part, had their currency speculators keep borrowing from Germany's recently privatized central bank, which was more than happy to print the German mark out of existence as the currency speculators did their dirty work. This then created the financial and social chaos,

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which brought Hitler to power, and was the perfect excuse to set up the Jews, with their many banking connections, as scapegoats. But the Illuminists also did something very, very interesting. Once Hitler came to power, they told Hitler to have his fledgling Nazi government issue a new German currency that was only good inside Germany so it could not be manipulated by outside speculation, and told him to print only as much currency as would be needed to cover the anticipated production that would occur as Germany underwent reconstruction and remilitarization. This was their idea as Hitler was hardly that well versed in economics to come up with it on his own. Hitler of course had his own German advisors, but we can assure you that they got most of their ideas from the Illuminist Puppet Masters, who were experts on currency manipulations and on monetary history. In fact, it was the Puppet Masters and their predecessors who in fact made much of monetary history. This move, of course, worked, as the Illuminists knew it would, and soon Nazi Germany, with all kinds of financial and political support from the Illuminists, was ready to start its conquest, thus generating trillions in profits for the US military-industrial complex, and providing an escape from a terrible depression. We can assure you that the war-to-escape-depression idea will be used again shortly. We wonder who the next Hitler will be who will take us into World War III to put an end to the Much Greater Depression that is currently underway and getting worse by the minute. Stay tuned. You haven't seen anything yet. The second part of the above dissertation will appear in the next issue. ***** From Harry Schultz: Dear Bob: Bob Chapman’s Int’l Forecaster newsletter revealed (5/20) this startling intelligence (from within US State Dept & embassies): ”Some US 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 govts, quietly. But not £’s. Inside the State Dept there is a sense of sadness & foreboding that ‘something’ is about to happen, unknown re a date—just that within 180 days, but could be 120-150 days.” Bob quotes another source that “Panasonic has told their people to be back in Japan by Sept 09.” (bob@intforecaster.com <mailto:bob@intforecaster.com> ) Harry Schultz, dean of newsletter writers, has quoted the Chapman letter of May 30 regarding US embassies being sent large amounts of cash with which to buy local currencies, to last them a year. Here is Harry’s remarkable take on the situation: “My HSL suspicion is that the elite plan another FDR style “bank holiday” of indefinite length, perhaps very soon, to let the insiders sort-out the bank mess which is getting more out of their control every day. Insiders want/need to impose new bank rules. Widespread nationalization could result, already under way. It could also lead to a formal US$ devaluation, as FDR did by revaluing gold (& then confiscating it). But devalue against what? The euro? Doubtful. Gold? Maybe. Or vs. the IMF basket of currencies (which seems more likely)—& much in the news recently. Any kind of bank holiday will push the US$ lower, which may be a bonus benefit to their ongoing scenario of letting the $ fall. Such a fall would get the devaluation they want without having to declare it. In sum, the insiders want more bank & system control, fewer banks & a lower US$. A bank holiday would suit all their needs. Obviously, U can’t open safeboxes if the banks are closed, so plan accordingly. All this is speculation, but we have to go with what we’ve got, scraps of info that point to certain possibilities. In any case such a closure will, IMO, come sooner or later, as the worst of the embedded

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derivatives are still to be faced. We are years away from solving them because the controllers don’t want to; their fingerprints are all over them. PS: during the FDR bank holiday, thousands of banks never reopened; it was a face-saving way of shutting them down. I would guess the same would occur today; thousands have little or no net value, loaded with debt, bad mortgages. ••• PPS: A Bob Chapman subscriber reported overhearing 2 FEMA jacketed men talking to a police chief in Calif. They wanted to federalize the police across the US. They (govt) would be closing banks in late Aug, early Sept & that it will get ugly.” Prepare for worst case, as any good Boy or Girl Scout would do. J” If U want to get Harry’s invaluable interpretation of everything-that-matters, send an order for the Int’l Harry Schultz Letter to: info@hsletter.com <mailto:info@hsletter.com> or write FERC, PO Box 622, CH-1001 Lausanne, Switzerland. Or via website: www.hsletter.com <http://www.hsletter.com> . 8-month trial $279 (€231), But for Chapman subscribers, Harry offers a $59 discount, offer good for til end July 09. - Toll free phone US only: (1) (866) 725 3724 ***** Whether people realize it or not we started an inflationary depression in February. You wouldn’t know that reading the mainstream media, or by listening to criminal enterprises known as Wall Street and government. The US dollar is on its irreversible path to losing its status as world reserve currency, as we enter the worst depression in our nation’s history. Americans may be unaware of it, but we know as do many foreigners that America is bankrupt. This knowledge is going to continue to inhibit the purchase of US government debt and will induce dollar holders to sell current dollar holdings. These countries have their own problems and they do not think it is their responsibility to fund US deficits. The BRIC nations led by China and Russia are going to use each other’s currency in trade as much as possible and they want a new international trading unit or currency. The Russians said they want gold to be weighted in SDR’s, Special Drawing Rights, to gain more balance within the unit. We are seeing the beginnings finally of foreigners hesitating to continue to accumulate dollars and to fund the profligate lifestyle of Americans and America’s imperial outreach. They obviously are serious because the US asked to attend the meeting of the Shanghai Cooperation Organization and were refused. A rebuttal, something US elitists have not experienced in some time. This was a very important meeting for the six nation participants and refusing entry to the US was certainly a political and diplomatic slap in the face, something that was completely ignored by the controlled media. The problem America has is that the conclusions of the BRIC nations will put major continual downward pressure on the dollar and short of world war there is little they can do about it. These nations are now determined to replace the dollar as the world’s reserve currency. That means the dollar is headed lower and that means inflation will rise as the cost of imported goods rises. It also means all things traded or denominated in dollars will be more expensive – inflated. Over the last ten years we’ve had just the opposite, cheap foreign goods keeping down US inflation. It is going to prove very expensive for Americans. The wild creation of money and credit will most certainly bring on hyperinflation. It will be far too copious and strong over the next few years for deflation to take over, but ultimately deflation will win out. The world banking system, as we know it is about to slide into history, as did the Oracle at Delphi, which so long ago played central bank and eventually brought

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tragedy to Greece. The days of our current elitists are numbered. We are not children to be simply dealt with. We may think our republic is democratically free, but it isn’t. It is controlled by a privately owned Federal Reserve just as England is with the Bank of England. The next move by BRIC nations will be to extend their influence throughout Asia and bring an end to American and British meddling in the region. This will be done in part by not recycling dollars – or in fact refusing to use them. No more dollar losses and no more funding for America’s military machine. It means the end of American dominance. There now will be a race to dump dollars. Special Drawing Rights, SDRs, are not the answer. They are simply another fiat currency. The Russians in part have it right, there must be a gold component and there will be if the SDRs are to be used. A better idea for an international trade unit is a gold backed basket of the ten top currencies, which would include the dollar. Until this happens dollar owners will continue to dump dollars by buying commodities, factories, land, etc., worldwide. America’s refusal to allow investment into certain areas, such as industries they consider to be off limits, due to security concerns will lead to an ever greater flow of dollars back to the US bringing inflation and eventually currency controls. Dollars will be allowed to leave but not enter the US. This will as well tighten government control over the wealth and finances of American citizens. If you had planned on leaving the US you had best do it now. The opportunity may not be there for you in the future. The fall of the dollar will mean a whole new way of life for Americans. We compare it to living during the 1940s and 1950s. That will last for a few years and then we’ll graduate into living as we did in the 1930s. If we are lucky there will not be a revolution. All markets will eventually collapse taking all investments down 60% to 95% from their 2006 highs. The only exception will be gold and silver assets, which will hold their value and appreciate. Military spending will fade and with that the end of US military dominance. It simply won’t be able to be financed. The days of printing money and issuing credit with abandon are coming to a close. The cycle is being ended. This will create distrust and confusion with higher unemployment, which could lead to social instability. The very rich elitists will control 80% of the country’s wealth, while the nation suffers 35% or more unemployment. Such a situation harbors the seeds of rebellion. We cannot spend our way out of our current dilemma. It is impossible. Those who deliberately created this situation know that. It was the price they were willing to pay to bring America and Europe to their knees economically and financially to force their populations to accept one-world government. This is not going to work and it will bring disaster on many levels to our planet. Saving Wall Street and banking isn’t going to work. They are insolvent. The losses have to be absorbed sooner or later. The later it is the worse it will be. If you look at history you will find this has happened over and over again. The result is fascist dictatorial government, accompanied by a big war or a number of smaller wars. This is how the elites hope to again extricate themselves and still hold power. We have news for them. This time it is going to be different. A police state won’t work on Americans. They will die rather than to submit, and the Illuminists are about to find that out. General Motors Corp. said it has reversed decisions to end franchise agreements with 60 dealers, as the largest US automaker scales back its retail network under bankruptcy reorganization.

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Some franchise owners were able to show that GM used inaccurate financial information in placing them on the list for closing, Susan Garontakos, a company spokeswoman, said yesterday. The revisions mean fewer shutdowns after Detroit-based GM began notifying about 1,330 dealers on May 15 that it didn’t intend to renew their franchises when they expire next year. Consumer prices have dropped 1.3% year in May, the largest drop in the last 60 years. Month on month, consumer prices have edged up 0.1%, the market consensus had advanced a 0.3% month on month increase and a 0.9% decline year on year. The Dollar remains steady. The deficit in the broadest measure of trade has plunged sharply in the first three months of the year as the country's deep recession depressed imports of oil and other goods. The Commerce Department said Wednesday the current account trade deficit dropped to $101.5 billion in the first quarter, a 34.5 percent decline from the deficit in the fourth quarter. It was the lowest current account deficit since the final three months of 2001 when the country was mired in the last recession. U.S. overall consumer confidence fell last week, according to an ABC News poll released Tuesday. The consumer comfort index fell two points to -49 in the week ended June 14, from -47 a week earlier. Federal Reserve officials are considering whether to use next week’s policy statement to suppress any speculation they’re prepared to raise interest rates as soon as this year. While policy makers have signaled they accept an increase in longer-term Treasury yields as the economy improves, some are concerned at any premature anticipation of rate rises. Fed staff have examined the Bank of Canada’s public intention of foregoing an increase until 2010, according to a person familiar with the matter, without concluding the statement has proven effective. JPMorgan Chase & Co. and four of the nation’s largest banks repaid $54.7 billion to the U.S. Treasury’s bailout fund in a step toward ridding themselves of government restrictions on lending and pay. JPMorgan repaid $25 billion, and New York-based Morgan Stanley and Goldman Sachs Group Inc. each gave back $10 billion. U.S. Bancorp, with its headquarters in Minneapolis, refunded $6.6 billion and Winston-Salem, North Carolina-based BB&T Corp. paid $3.1 billion, the banks said today in separate statements. The lenders are among 10 companies that last week said they would repay a total of $68 billion to the Troubled Asset Relief Program after Treasury approved the payments. Banks have unveiled plans to raise more than $100 billion in capital, and financial stocks have climbed in the past three months on signs the global credit contraction is easing. The largest expansion of U.S. health care since the creation of Medicare in 1965 may emerge from legislation designed to reshape the medical industry and change how Americans receive and pay for care. Congress today began crafting legislation that Democratic leaders plan to push through both chambers by their August recess. The measure may require all Americans to get medical insurance, force insurers to accept all patients and end the tax break for employer-paid health benefits. These changes may be hammered out with unprecedented speed at the urging of President Barack Obama, who four days ago said “this is the moment.” Obama has made a health-care overhaul his top domestic priority, using his February budget proposal to call it a “moral” imperative to extend coverage to the

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country’s 46 million uninsured. Obama also tied the long-term fiscal soundness of the U.S. to controlling medical costs. Health care consumes 18 percent of the U.S. economy and may rise to 34 percent by 2040, the White House Council of Economic Advisers reported June 2. “I don’t think we’ve ever had anything this large in American history aimed to go this quickly that touches everybody’s lives,” said Robert J. Blendon, a professor of health policy and political analysis at Harvard University in Cambridge, Massachusetts, in a telephone interview. “They’re moving at a pace we’ve never seen before.” California Treasurer Bill Lockyer has insisted all through Sacramento's latest budget crisis that he would never allow the state to renege on what it owes bondholders. Yet when credit-rating firm Standard & Poor’s on Tuesday warned that it might cut California’s credit grade -- which already is the lowest of the 50 states -- S&P flagged at least the possibility of default. In the first paragraph of its statement, S&P says that "although we continue to believe the state retains a fundamental capacity to meet its debt service, insufficient or untimely adoption of budget reforms serve to increase the risk of missed payments in our view." S&P’s language incensed Lockyer’s spokesman, Tom Dresslar. "S&P raises undue alarm about the potential for missed bond payments," he said. "There is zero chance of that happening." Worries about the state’s fiscal fate, combined with an early-June jump in U.S. Treasury bond yields, have driven market prices of the state’s bonds sharply lower since mid-May, sending yields soaring. Tax-free yields on 10-year California general obligation bonds were between 5% and 5.1% on Tuesday, according to several traders. The yield was under 4.4% in mid-May. From his lips to God’s ears. Struggling mall retailer Eddie Bauer Holdings Inc. filed for Chapter 11 bankruptcy protection on Wednesday but said a bidder already has agreed to keep the majority of its 371 stores open, honor gift cards and hold onto most employees. Drunken Arizona drivers with the late-night munchies may soon be getting more than chicken strips at drive-through windows. The Pima County Sheriff's Department has a new campaign targeting drunken driving. Operation Would U Like Fries, or Operation WULF, will put undercover deputies inside 24-hour fast-food restaurants to spot impaired drivers placing their orders. Sgt. Doug Hanna, a DUI unit supervisor, says if deputies notice someone with classic symptoms of impairment — slurred speech, red or watery eyes or beer breath — they will have a uniformed deputy stationed outside pull the driver over. Hanna says money for the intermittent program is coming from a $128,000 grant from the Governor's Office of Highway Safety. Retail gas prices climbed for the 50th straight day Wednesday, the longest streak in records dating to 1996, even as benchmark crude fell for the fourth day in a row. Historically, filling station prices tend to rise during the summer as millions of vacationing Americans pour onto the highways. But a surge in crude prices during the past few months and less production from the refiners that make gasoline has added even more pressure on prices. "Refiners slowed production and did a lot of maintenance on the expectation that this was going to be a lousy year for demand," said Fred Rozell, retail pricing director at Oil Price Information Service. "It turns out it wasn't so bad."

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Yet it's still pretty bad. Before the most recent government report on demand, gasoline supplied to the market was down 3 percent, and prices were still cheaper than they were three years ago at this point in June. Pump prices added a half cent overnight to a new national average of $2.679 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service. A gallon of regular gas has jumped nearly 37 cents in a month. Mid-Atlantic factory activity booked its smallest retreat since last September in June, raising hopes for the economic recovery. The Federal Reserve Bank of Philadelphia reported Thursday that its index of general business activity for the manufacturing sector came in at -2.2 in June, compared with -22.6 in May. That reading was the least bad since the fall, when it tilted very near the zero mark that represents the break even point between contraction and expansion. June's reading was well above the -18.0 expected by economists. The Philadelphia Fed report bears particular importance for financial markets and economists, who see it as a proxy and leading indicator for national economic activity. As such, the report helps raise hopes that the manufacturing sector is emerging from the recession, and increases chances that a recovery will take place later this year, as many policy makers and analysts expect. Michael Trebing, an economist with the bank, offered a note of caution, saying the report "showed continued weakening in manufacturing." But he added, "the declines were much less in evidence this month." Meanwhile, the report noted "most of the survey's broad indicators of future activity showed continued improvement, suggesting that the region's manufacturing executives are becoming more optimistic that a recovery in business will occur over the next six months." The report's components were a bit of a mixed bag. On the positive side, the June shipments index stood at 2.1, compared with -19.0, while the new orders index was -4.8, after May's -25.9. The report also showed inflation pressures as waning, which is a sign of improved activity and higher energy costs. The prices paid index hit -13.0, compared with -22.8, while the price received index was -16.6, versus -33.8 in May. But hiring continued to contract, with the employment index at -21.8. It stood at -26.8 in May. The May index of leading indicators offered more signs that the U.S. economy has moved closer to recovery. The leading index jumped 1.2% last month, after April's index increase was revised to 1.1%, the Conference Board reported Thursday. April's rise was originally reported as 1.0%. Economists surveyed by Dow Jones Newswires had expected an increase of 1.0% in the May index. "The recession is losing steam. Confidence is rebuilding and financial market volatility is abating," said Ken Goldstein, economist at the Board. But he warned that "employment will take longer to turn around." Vendor performance, interest-rate spread, real money supply, stock prices, consumer expectations and building permits made positive contributions to the May index. Weekly hours worked and new jobless claims were negative contributors. The coincident index fell 0.2% in May, after a revised drop of 0.3% in April. April's decline was first reported as 0.2%. The lagging index dropped 0.2% in May, after a revised 0.8% decline in the prior month. The April drop was originally reported as 0.5%.

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The number of U.S. workers filing new claims for jobless benefits rose slightly as expected last week, suggesting that while job losses have moderated since the beginning of the year, a rapid turnaround in labor market conditions is unlikely. Meanwhile, total claims lasting more than one week plunged by their largest amount since November 2001, breaking a streak of 21-straight increases in a rare reprieve for the unemployed in this recession. Initial claims for jobless benefits rose 3,000 to 608,000 in the week ended June 13, the Labor Department said in its weekly report Thursday. Economists surveyed by Dow Jones Newswires had expected a 2,000 rise. The previous week's level was revised up. The four-week average of new claims, which aims to smooth volatility in the data, fell 7,000 to 615,750, the lowest level since mid-February. The latest initial-claims data include the survey week for the June payroll report. When employers are surveyed for the monthly employment report, they are asked about staffing levels for the pay period that includes the 12th day of the month. For that reason, many economists pay close attention to the jobless-claims data for that week. Nonfarm payrolls fell 345,000 in May, the smallest decline since September, though the unemployment rate jumped 0.5 percentage point to a quarter-century high of 9.4%. Meanwhile, according to Thursday's report the tally of continuing claims - those drawn by workers for more than one week in the week ended June 6 - fell 148,000 to 6,687,000, the first weekly decline since the Jan. 3 week and largest since Nov. 24, 2001. Including extended benefit and other federal programs, the total number of people collecting jobless benefits was almost 8.8 million in the May 30 week, up from about 8.5 million the previous week. That number, which lags the initial and continuing claims figures, isn't adjusted for seasonal fluctuations. The unemployment rate for workers with unemployment insurance was 5% in the June 6 week, down 0.1 percentage point from the previous week. Credit ratings agency Standard & Poor's lowered its ratings and revised its outlooks on 22 U.S. banks on Wednesday, citing concerns that operating conditions will be less favorable than they were in the past due to volatile financial markets during credit cycles and tighter regulatory supervision. Standard & Poor's also said the changes reflect its ongoing broad-ranging reassessment of industry risk for U.S. financial institutions. The agency indicated that the banking industry is now in a transition period and will likely undergo material structural changes. Further, the agency said its overall assessment of the industry includes expectations that loan losses are likely to continue to increase and could rise beyond current expectations. Standard & Poor's credit analyst Rodrigo Quintanilla said, "We believe the banking industry is undergoing a structural transformation that may include radical changes with permanent repercussions." "Financial institutions are now shedding balance-sheet risk and altering funding profiles and strategies for the marketplace's new reality," Quintanilla added. "Such a transition period justifies lower ratings as industry players implement changes." BB&T Corp.(BBT: News ), Capital One Financial Corp.(COF: News ), Key Corp. (KEY: News ) U.S. Bancorp (USB: News ), and Wells Fargo & Co.(WFC: News ) were among the larger banks on the list that saw their ratings cut by S&P.

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Additionally, Standard & Poor's reassessed the relative creditworthiness of many institutions based on their ability to deal with the increased risks during this transition period and inferred that some firms may be better able to weather the risks ahead than others. However, the agency stated that it could foresee raising ratings in the long term if lower earnings and reduced risk go along with stronger risk-adjusted capital and effective governance. The other banks on the list include Associated Banc Corp. (ASBC), Astoria Financial Corp. (AF), Comerica Inc. (CMA), Fifth Third Bancorp (FITB), M&T Bank Corp. (MTB), PNC Financial Services Group (PNC), Regions Financial Corp. (RF), Susquehanna Bancshares Inc. (SUSQ), Valley National Bancorp (VLY), Webster Financial Corp.(WBS), Wilmington Trust Corp (WL), and First National Bank of Omaha. Regional banks cut to junk status included Carolina First Bank, Citizens Republic Bancorp Inc. (CRBC), Huntington Bancshares Inc. (HBAN), Synovus Financial Corp. (SNV), and Whitney Holding Corp. (WTNY). The Senate today overwhelmingly passed a bill that would fund military operations in Iraq and Afghanistan through Sept. 30, giving congressional backing to President Obama's plan to increase troops and resources for the war in Afghanistan. The 91-5 vote sends the bill to President Obama for signing. The $105.9 billion bill also includes $7.7 billion to prepare for a potential outbreak of a pandemic flu, an increased U.S. contribution to the International Monetary Fund and $1 billion to start the "cash for clunkers" program that will give Americans vouchers of up to $4,500 to turn in their old cars and purchase more fuelefficient vehicles. Payrolls fell in most of the U.S. during May as companies squeezed by the recession kept unloading workers, but fewer states lost jobs than in April. Non-farm payroll employment decreased in 39 states and increased in 11 states and the District of Columbia last month, the Labor Department said Friday. In its state unemployment breakdown for April, Labor said non-farm payrolls fell in 44 states and the District of Columbia, rising in six states. The moderation in the drop echoes other data showing the economy is not as bad as it had been - but it still isn't good. Two weeks ago the Labor Department said non-farm payrolls shrank by 345,000 jobs in the U.S. during May - about half the average monthly decline for the prior six months. In April, payrolls shed 504,000 jobs. Since the recession began in December 2007, 6 million jobs have vanished. The jobless rate rose in May to 9.4% from 8.9% in April. California lost the most jobs of all states in May, at 68,900. Florida dropped 61,000, with Texas losing 24,700 and Michigan down 23,900, Labor said. Michigan, the heart of the automobile industry, had the highest jobless rate in May, at 14.1%. Oregon had a jobless rate of 12.4% and Rhode Island and South Carolina each had 12.1%. The Federal Reserve's latest weekly money supply report Thursday shows seasonally adjusted M1 rose by $34.3 billion to $1.631 trillion, while M2 rose $4.4 billion to $8.354 trillion. The figures are preliminary estimates for the week extending through June 8 and are subject to revisions. The Fed expanded its balance sheet by $29.406B in the latest week. The Fed monetized $42.766B of securities. $15.5B of swaps were disgorged. If Congress intends to investigate Sammy Sosa for lying about steroids, Bernanke should be

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investigated for lying about monetizing debt and threatening Lewis. The real reason for Thursday’s collapse in bonds is the Treasury announced that it would auction $104B of debt next week - $40B of 2s, $ 37B of 5s and $ 27B of 7s. Plus $61B of T-Bills totals $165B! President Obama's plan to revamp financial regulations triggered immediate criticism Wednesday from both the political left and right over the expanded policing authorities given to the Federal Reserve while business groups grumbled about a powerful new agency charged with protecting consumers against abusive lending. Lawmakers picked apart virtually every element of the Obama administration's regulatory reform plan during a hearing Thursday, but there was one question that dominated: Would it really prevent another financial crisis? Senators were astounded that there were no reforms for Fannie and Freddie. That’s because Congress intends for GSEs to provide unwarranted benefits to certain constituents. President Obama signed the American Recovery and Reinvestment Act (ARRA) into law, thus launching a bold new initiative to modernize state unemployment insurance programs with the help of $7 billion in federal incentive funds. That is because the ARRA covered 100 percent of the costs associated with the 13- to 20-week program of Extended Benefits, which is normally paid for 50 percent by the states. Government figures, in fact, show the proportion of recipients who used up their jobless benefits averaged 49 percent in May, a record. A market manipulation vehicle will be investigated. The FT: SEC to turn spotlight on ‘dark pools’: The increasingly popular trading venues known as “dark pools’’ are to come under fresh scrutiny from regulators concerned about the emerging risks they pose to the wider markets, the head of the US Securities and Exchange Commission said on Thursday. Mary Schapiro, SEC chairwoman, has asked her staff to investigate the impact of automated “dark pools”, off-exchange trading venues that do not display quotes to the public. Investorscan anonymously trade large blocks of shares on dark pools, leading to concerns about their impact on public prices and markets. New York Fed President William Dudley set expectations low, saying in a June 4 speech that he didn’t foresee any activity because the securitization process “takes quite a while to ramp up.” He asked his audience not to “take that as a mark of the success of the CMBS effort, please.” The stakes of TALF aid for CMBS extend beyond the markets for office and retail space. Worsening problems in the commercial mortgage market may accelerate the drop in property values, increase defaults and weaken banks’ finances, Dudley said in the speech. Among asset classes targeted by the Fed through the TALF, “commercial real estate is going to be the toughest to crack as its financing is very long-term in nature,” Rupkey said. Personal Income Tax Revenues Portend Deepening Trouble for Many States Preliminary data show deep declines in overall personal income tax revenues in nearly every reporting state. These declines signal continued difficult fiscal challenges ahead, particularly for the states that rely most heavily on personal income taxes… Looking at the most recent recession years, personal income tax revenue declined by only 1.4 percent in April-June 1993 and by a dramatic 22.3 percent in April-June 2002. Given the severe declines in April 2009 personal income tax collections, we expect that the April-June 2009 quarter will be even more dramatically

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negative than the April-June 2002 quarter. Total personal income tax collections in January-April 2009 were 26 percent, or about $28.8 billion below the level of a year ago in states for which we have data. In April 2009 alone (April being the month when many states receive the bulk of their balance due or final payments), personal income tax receipts fell by 36.5 percent, or $18.2 billion. They are all fraudulent, it’s obvious. We don’t even have paper securities outstanding for that value,’’ said Mckayla Braden, senior adviser for public affairs at the Bureau of Public Debt at the US Treasury department. “This type of scam has been going on for years. From a fundamental and technical viewpoint the stock market and bond markets are under pressure. They both should not be able to launch any kind of a sustainable rally from present levels. From here on out markets will tend to be boring and cautious. The Fed on Wednesday bought $7 billion of bills and notes and monetized $6.45 billion of 3 and 4-year bills. There is gloom and doom at the highest levels of the banking industry because collateral values keep deteriorating and there is no end in sight. Few banks have as yet writing off their holdings of HELOC paper. They are faced with the next leg down as prime mortgage defaults hit the market. Commercial paper outstanding fell $27.7 billion in the week ended 6/17 versus $14.8 billion the previous week. Asset backed CP outstanding fell $22.2 billion versus a $32.5 billion. CP outstanding was $1.202 trillion versus $1.230 trillion. ABCP outstanding was $502.7 billion versus $524.9 billion. Unsecured CP issuance fell $100 million to $15.9 billion. This is the lowest level of CP in 8-12/ years. The preliminary take on the sweeping new Obama rules for the nation’s financial system to be are an insult to the American people - as they say the best defense is a strong offense. A preeminent move in psychological warfare is to heap more responsibility on the shoulders of the Fed. This is so Congress won’t pass legislation to investigate and audit the Fed. It is also to prevent the real culprits from going to jail. The excuse is the system failed and needs to be overhauled. It was those who created the conditions for unbridled lending, which launched the housing bubble and the securitization that followed. All the rules were broken and the Fed led the pack. No new rules or regulations are needed. All those who broke the rules have to be tried, sentenced and jailed and their wealth taken from them. All those who aided them at the SEC and CFTC should be jailed as well. The overhaul is pure misdirection. The Fed orchestrated all this and they want to put them in charge. These changes put the fed in charge of the country. They are leading a financial dictatorship unless we can make HR 1207 and S 604 the law. Once even Congress understands what they are doing, even they will dump the Fed. California’s unemployment rate jumped from 11.0% to 11.4% in May. In the bond market, the Treasuries are close to the trend line that began from the bear market lows in 1981. Further weakness will break that line and we believe that will happen. As HR 1207 appears to be ready to pass – 258 co-sponsors – to investigate the Fed. The pros on Wall Street are quaking in their boots. If HR 1207 is passed and not vetoed the issue of unconstitionaility will surface. The Fed could soon be exposed as the fraud it really is. As we said earlier the new responsibilities of the Fed is a psy-op cover, an offensivecover.

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This is a private company owned by US and European bankers, which has been responsible for the debauching of our currency by 95%. The Dow fell 2.9%; S&P fell 2.6%; the Russell small cap lost 2.7% and Nasdaq fell 1.3%. Banks lost 3.4%; broker/dealers lost 5%; cyclicals lost 6.2%; transports fell 4.2%; consumers fell 1.4%; utilities fell 1.4%; high tech fell 2.4%; semis fell 3.8%; Internets fell 3.5% and biotechs were off 0.6%. Gold bullion fell $4.00 and the HUI fell 2.8%. Two-year T-bills fell 7 bps to 1.19% and the 10’s fell 2 bps to 3.78%. The 10year German bunds fell 13 bps to 3.50%. Freddie Mac’s 30-year fixed rate mortgage fell 21 bps to 5.38%; the 15’s fell 17 bps to 4.89% and the one-year ARMs fell 9 bps to 4.95%. Fed credit jumped $29.4 billion. Holdings of Treasuries for foreigners and Agency debt increased $2.1 billion to a record $2.752 trillion. Custody holdings for foreign central banks have risen 20.3% ytd. Bank credit fell $59 billion. It is up $317 billion yoy. Securities credit sank $32.6 billion; loans and leases fell $26.4 billion; C&I loans declined $5.9 billion; real estate loans fell $7.4 billion; consumer loans fell $4.3 billion and securities loans fell $5.5 billion. Other loans fell $3.2 billion. M2 – narrow money supply gained $4.4 billion. Total money market fund assets fell $72.9 to $3.675 trillion. The USDX, the dollar index gained 0.2%. Almost two years into the worst financial calamity since the 1930s, companies are doing everything they can to reduce their indebtedness, selling record amounts of equity to pay back bonds and loans. ‘Stock buybacks are a thing of the past: It’s reducing debt and bond buybacks that are in vogue,’ said Kathleen Gaffney, comanager of the Loomis Sayles Bond Fund. ‘Stocks aren’t going to move and earnings aren’t going to move without a healthier balance sheet,’ said Gaffney. More than 165 companies raised a record $87 billion in U.S. secondary share sales this quarter, and 77% of them used the proceeds to slash leverage, according to Bloomberg. Irish retail sales fell 17% during April from the same month last year, the country’s Central Statistics Office said… When car sales are excluded, sales fell 7.1%. National Income declined a modest $48bn (annualized) during the first quarter to a $12.255 TN pace. This was a slower contraction than Q4’s $189bn (annualized), with National Income declining 1.6% y-o-y. Total Compensation was up 0.2% y-o-y to $8.024 TN. From my analytical perspective, the massive - almost $2.2 TN - “federal” Credit boom has for now stabilized system-wide Compensation and Income. Yet the sustainability and consequences of the Government Finance Bubble create – at best great uncertainty. I’ll stick with the analysis that two Trillion-plus of government Credit creation is necessary to hold Bubble Economy implosion at bay – and that this amount of Washington-based finance comes with its own set of serious issues (including exacerbating global financial and economic distortions). Household Balance Sheet data make for dreadful analysis. Despite incredible government stimulus, Household sector Assets declined a further $1.444 Trillion during the quarter. This brought the one-year drop to an unrivaled $10.075 Trillion (13.5%). At $64.517 TN, Household Assets have returned to year-end 2005 levels. Over the past year, Financial Assets declined $7.869 TN (16.3%) to $40.296 TN and Real Estate dropped $2.279 TN (10.3%) to $19.819 TN. Household Liabilities contracted at a 3.2% rate during the quarter to $14.141 TN, with a one-year drop of 2.1% ($301bn). As such, Household Net Worth contracted $1.330 TN, or at a 10.3% rate, during Q1 to $50.376 TN. Household Net Worth dropped $9.774 TN over the past four quarters, or 16.2%, deflating back to about the Q3 2005 level.

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***** AIG’s ex-CEO had private jet fly stock to Bermuda: As you can see, there are two sets of rules for offshore banking. One for the Illuminists and one for the rest of the citizens. http://economictimes.indiatimes.com/articleshow/4669572.cms?prtpage=1 ***** China Commodities Undercut USDollar http://news.goldseek.com/GoldenJackass/1245341616.php ***** Obama Lays Out ‘Sweeping Overhaul’ of Financial Rules http://www.bloomberg.com/apps/news?pid=20601103&sid=aUfFlXRCsp9U ***** ***** 6/18/09 Fed Reserve Racketeers DIVE FOR COVER - HR 1207 Ron Paul’s Audit the Fed bill is now up to 258 cosponsors *****

Rep. Alan Grayson's (D-FL) letter to support HR 1207 "Audit the Fed"
http://action.firedoglake.com/page/content/graysonletter/ ***** From a Fellow subscriber: Adam Kokesh speech http://www.youtube.com/watch?v=PbOp_9VfR6o http://www.youtube.com/watch?v=V_gcwVcqCcc&NR=1 <http://www.youtube.com/watch?v=V_gcwVcqCcc&amp;NR=1> THIS DUDE GETS IT!!! WHEN ARE WE GOING TO BE AWAKENED TO OUR DUTY FOR COUNTRY...??? HOW MUCH TYRANNY MUST WE ENDURE??? HOW MANY FREEDOMS MUST BE LOST BEFORE WE STAND UP AND 'ENGAGE IN PEACEFUL REVOLUTION'??? AWAKE O' SLEEPING GIANT!!! STOP BEING COMPLACENT...STAND FOR LIBERTY...GIVE ME LIBERTY, OR GIVE ME DEATH! ***** N.S.A.'s Pinwale Examines Large Volumes of US E-mail Messages Without Court Warrants <http://www.nytimes.com/2009/06/17/us/17nsa.html> --E-Mail Surveillance Renews Concerns in Congress 17 Jun 2009 The National Security Agency is facing renewed scrutiny over the extent of its domestic surveillance program, with critics in Congress saying its recent intercepts of the private telephone calls and e-mail messages of Americans are broader than previously acknowledged, current and former officials said. A former N.S.A. analyst who, in a series of interviews, described being trained in 2005 for a program [Pinwale <http://www.globalsecurity.org/intell/systems/pinwale.htm> ] in which the agency routinely examined large volumes of Americans’ e-mail messages without court warrants. Two intelligence officials confirmed that the program was still in

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operation. Audit Finds U.S. Overpaid Blackwater By $55 Million <http://online.wsj.com/article/SB124511068419617063.html> 17 Jun 2009 A government audit found that the State Department overpaid the contract-security firm once known as Blackwater Worldwide by tens of millions of dollars because the company failed to properly staff its teams in Iraq. The report said the State Department should have withheld at least $55 million in payments to the company because of the shortfalls. ***** Washington is unable to call all the shots By Michael Hudson http://www.ft.com/cms/s/0/16e9f3e8-5944-11de-80b3-00144feabdc0.html ***** Witness says one guard shot another at Holo. Museum,von Brunn http://www.newsnet14.com/2009/06/witness-says-one-guard-shot-another-at-holomuseumvon-brunn/ ***** US military teaches 'protesters' are 'low-level terrorists' http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=101473 ***** US planning Velvet Revolution in Iran? http://www.prisonplanet.com/us-planning-velvet-revolution-in-iran.html ***** The McCollum Memo: The Smoking Gun of Pearl Harbor http://whatreallyhappened.com/WRHARTICLES/McCollum/index.html?q=McCollu m/index.html ***** THE TOWER OF BASEL: DO WE REALLY WANT THE BANK FOR INTERNATIONAL SETTLEMENTS ISSUING OUR GLOBAL CURRENCY? Ellen Brown, April 20th, 2009 http://www.webofdebt.com/articles/basel.php ***** No More Murderous Rip-Offs by Ron Paul http://www.lewrockwell.com/paul/paul540.html ***** Ron Paul Discusses HR1207 and the $ on Gold Seek Radio (6/10/09) June 17, 2009 – 8:28 am http://revolutionarypolitics.com/?p=1226 ***** Obama's AmeriCrooks and Cronies Scandal—The Chicago Way Comes To Washington http://www.vdare.com/asp/printPage.asp?url=http://www.vdare.com/malkin/0906 16_americrooks.htm ***** Obama's Blueprint for Reform Concentrates Still More Power in Hands of the Fed http://www.marketoracle.co.uk/Article11376.html *****

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Hyperinflation: The Story of 9 Failed Currencies http://www.mint.com/blog/finance-core/hyperinflation-the-story-of-9-failed-currencies/ ***** A Tale of Two Depressions http://www.voxeu.org/index.php?q=node/3421 ***** It Comes Down to This! Jim Kirwan 6-18-9 http://www.rense.com/general86/dwnto.htm ***** Obama Regulatory Reform Plan Officially Establishes Banking Dictatorship In United States http://www.prisonplanet.com/obama-regulatory-reform-plan-officially-establishesbanking-dictatorship-in-united-states.html/print/ ***** Iran's Election and US - Iranian Relations by Stephen Lendman http://sjlendman.blogspot.com/ ***** Arizona officers fight concealed gun proposal http://www.azcentral.com/news/articles/2009/06/19/20090619guns0619.html?sour ce=nletter-news ***** The Waning Power of Truth http://www.opednews.com/articles/The-Waning-Power-of-Truth-by-Paul-CraigRoberts-090618-235.html ***** Retailers Head for Exits in Detroit http://investment-blog.net/retailers-head-for-exits-in-detroit-by-andrewgrossman/ ***** JOURNALIST THREATENED FOR EXPOSING COVER-UP By Cliff Kincaid June 18, 2009 NewsWithViews.com http://www.newswithviews.com/Kincaid/cliff321.htm ***** From a Fellow Subscriber: Good Morning Judy & Bob, Here is something I did unexpectedly this morning. My husband sent me an article from the WSJ - The White House Fires a Watchdog http://online.wsj.com/article/SB124511811033017539.html

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referring to the incident with Gerald Walpin and Obama firing him. I was so ticked-off I sent him a letter. Which by the way all I was going to do is check my email for any clients letters and that was it. These people are getting away with fraud along with our tax dollars. Sorry I know I am preaching to the choir. It seems to me if there is anyone left in Washington to defend the rights of the Citizenry of this great nation, they are being axed. The letter below was sent off to Obama within the last half hour. Have a great & Blessed day. As Always With Loving & Caring & Healing Hands, Dear Mr Obama, How dare you fire a person who is looking out for the taxpayers money. Gerald Walpin, Inspector General of the Corporation For National and Community Service was trying to save us taxpayers $850,000.00 and Mr. Walpin gets axed because your friends did not like it very much. Don't you think it is about time you step up to the plate and acknowledge the errors of your ways and let Mr. Gerald Walpin do his job. Now, because Mr. Gerald Walpin was left out of the settlement proceedings, Mr. Brown himself settled with St. HOPE, Mr. Johnson and his assistant, an agreement that required St. HOPE (with a financial assist from Mr. Johnson) to repay approximately half of the grant, and also required Mr. Johnson to take an online course about bookkeeping. How pathetic is that I may add. The taxpayer gets shafted once again. Mr Brown (U.S. Attorney General) should be the one to be fired not Mr. Walpin. Apparently Mr. Walpin was doing his job and Mr. Brown was not and according to our Constitution, Mr. Brown should be arrested for TREASON. Mr. Obama it is about time you started doing the right things & giving people (the taxpayers) back their monies and not what you think "We The People" deserve. Sincerely, ***** AKTI Opposes U.S. Customs' attempt to classify assisted-opening knives and all one-hand opening knives as switchblades. http://www.akti.org/legislation/uscustoms.html ***** From a Fellow Subscriber: Hi Bob, I kind of feel like you are the wise uncle I should have had in my life. I would even go out and play golf with you. I just thought I would give you some news from home, so to speak. The inflation has heated up here in Northern Ohio - the rust belt. My county has 22.5% unemployment in the summer when employment usually picks up due to tourism. I have not had a full-time job in 2 years. I worked for 2 colleges in 2001. Then Governor Taft cut funding to higher education and eliminated my positions at 2 colleges. After that I took a position with an (third party) auto parts inspection company. So the inflation has been hitting here since last summer with the increase in gas prices and a bit slower before that. On many items the price has increased or the quantity has decreased. Or the price has increased and the quantity has decreased. Some examples: real wholegrain bread $1.89 a loaf in Spring 2008, now $1.99 + on sale or $2.69 to $3.29 in June of 2009; cauliflower $.99 a head in Spring 2008, now $2.49; pasta per 2# box $.89, now $1.79; Old Milwaukee Beer $2.59 a 6 pack of pints in Summer 2007, $1.99 on sale, $3.79 through Summer of 2008 and now $4.29 Summer

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of 2009 - no more sales; Piasano wine per gallon $9.99 Spring 2008, now 13.99 Summer 2009; Amish Chicken per pound of breasts with bones $3.49 Spring 2008, now $5.49; 2# can of peanuts $3.49, now $4.79; Botan Rice $8.79 per 20# bag Spring 2008, now $18.84 (Walmart); Chicken Soup (Kroger 26 oz. concentrate) $1.00 a can on Sale Spring 2008 / (Walmart brand) $1.00 normal price Spring 2008, now (Kroger) $1.79 and (Walmart) $1.39 (average). It is really going up faster this summer. Potatoes used to be like $2.00 for 10# and now are $2.49 per 5# or higher depending on the store you buy them in. Even our local farm markets have increased prices quite a lot this summer. Then there are the strange things with the weather radar on NOAA and Weather Underground. Last night I looked at the radar to see if we had any rain coming (I have a large veggie garden) and it showed rain over my area, but there was no rain despite the big area on the map. Tonight it is pouring out there and nothing shows up on radar. I have never seen anything like this. I have looked at weather radar on the Internet for 10 + years and if it was raining it showed up on radar. The strange weather anomaly like this has happened through this Spring / Summer especially. It makes me wonder what is being done with this weather radar. It is like everything is a lie. Well, thanks for your ear for a while and the I.F. and everything you are doing to awaken the masses to the Evil on the planet. Take care!!! I can keep you informed about this area in Ohio. I forgot to also add that the third-party auto inspection job ended in June of 2007, with the declining auto industry. All I can find is a very part-time, short-term position of about 20 hours a week and it is for a non-profit organization, which I just found out does not pay into unemployment. This position will end Sept. 7. So much for almost 7 years of college, because all I can find is part-time minimum wage work. Thanks for all you are doing. I have been pushing at my Reps for HR 1207. Marcy Kaptur is our Congresswoman and seems to be in the right mindset. So she is in there with Dennis Kucinich and Ron Paul trying to get something done for the people it seems. ***** From a Fellow Subscriber: Hello Bob, Disturbing inside info about the FDIC few are aware of. I pass it along to you. While people have a right to know, this is sure upsetting info if the public knew. FDIC (Federal Deposit Insurance Corporation) One of the most troubling things I have ever found took place a few years ago when I had a chance to speak with FDIC officials. I had known for a long time that the FDIC is not what they say it is and could be quite a mess someday. Unfortunately, nobody else mentions this. The FDIC tells citizens that “their money is insured.” They are right their money is insured, but THEY are not! Quite a play on words. When I began to realize that there is no way that I as a depositor could ever be insured I began to look into this further. What is going on here? Why would I think that I would be covered with such insurance? I pay the FDIC no premiums, how would I have any beneficial interest? I

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could not. So while it is true that my “money is insured” none of us depositors are! Who is then? The bank is the beneficial interest. The problems gets worse from here as I will explain. I began too look into the Federal regulations and enabling legislation which created this deception. Unbelievable what I found out. First of all, much of this is not published anywhere. We have laws which apply to us which we cannot find out about. Furthermore, when we ask about it, the FDIC people got very upset, as I will explain. The FDIC regulations (shown below) state that in the event of any type of bank failure it is the bank who determines ownership of accounts and how much is in individual accounts (http://www.fdic.gov/regulations/laws/rules/2000-5400.html#2000part330.5) and this is a huge problem, as I'll explain.
330.5 Recognition of deposit ownership and fiduciary relationships.

(a) Recognition of deposit ownership--(1) Evidence of deposit ownership. Except as indicated in this paragraph (a)(1) or as provided in § 330.3(j), in determining the amount of insurance available to each depositor, the FDIC shall presume that deposited funds are actually owned in the manner indicated on the deposit account records of the insured depository institution. If the FDIC, in its sole discretion, determines that the deposit account records of the insured depository institution are clear and unambiguous, those records shall be considered binding on the depositor, and the FDIC shall consider no other records on the manner in which the funds are owned. If the deposit account records are ambiguous or unclear on the manner in which the funds are owned, then the FDIC may, in its sole discretion, consider evidence other than the deposit account records of the insured depository institution for the purpose of establishing the manner in which the funds are owned. Despite the general requirements of this paragraph (a)(1), if the FDIC has reason to believe that the insured depository institution's deposit account records misrepresent the actual ownership of deposited funds and such misrepresentation would increase deposit insurance coverage, the FDIC may consider all available evidence and pay claims for insured deposits on the basis of the actual rather than the misrepresented ownership. Note: Notice that it says “insured depository institution” as it is the bank, not the depositor, who is insured. Sure your money is insured but you as a depositor are not! The American people would be outraged if they knew this.

The depositor may think that in the event of any trouble all he has to do is bring his bank statements and deposit slips. He is wrong as they are specifically excluded! I took quite a bit of research to get the internal procedures of the FDIC (which I have copies of). Read this carefully as it is a procedural document for FDIC employees from their internal handbook in which clearly says that “The FDIC uses deposit account records of the institution to determine both the identity of the owner(s) and the right and capacity in which the funds are held.” Further down it specifically excludes the records of the depositor as is seen in the next section of this attachment! A depositor has no say in his account or his money! What would happen if the American people knew this? Now I know why Miss Tanoue was so upset when I asked her about this. She demanded to know my source of this

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information, who I was, and several other things. I asked her that this is Federal law, why the outrage? She admitted that what I am saying is true but wanted to know how I knew this and who I was. What happens here is that if a bank ever fails and has no records for whatever reason, its depositors have virtually no recourse. The FDIC only speaks of its "discretion" in such an event but their own regulations specifically exclude anything a depositor can provide to verify his account and his money! The reason why bank statements and deposit slips of a depositor can never be used to prove anything is simple. As an example, if a person on February 10th received his January bank statement covering 1/1- 1/31, he would be unable to verify anything that took place between 2/1 and 2/10. If the bank failed on 2/15 he could not prove that in these interim dates he did not withdraw all his money as could happen if their were ever a panic and people had a run on the banks a few days earlier. Therefore, he could not prove what was in his account at the time of the failure so his records are of no value. Nobody realizes this and the FDIC was very upset that I did. In the event the bank records fail (computer problems, EMP issue, or other things) the depositor has no protection or recourse at all! ***** From a Fellow Subscriber: Hi, Bob: I was fascinated by the story of the two Japanese nationals caught at the Swiss border carrying $134 billion in bearer bonds. I've been told that the Japanese were just couriers and that the bonds had originally been put up as security for commercial transactions. The holder of the securities was apparently a RussianChinese financial entity. I say apparently because the trail appears to end there. The plan was to convert the bonds to Swiss francs. The Italians won't be allowed to keep the money, although they will get something for their trouble. The Japanese will be quietly sent back to Japan. The whole incident will be hushed up. It would be very embarrassing if the Russian and Chinese state banks were exposed in a scheme to covertly exchange dollars for Sf. They have all solemnly promised not to dump the dollar. Today's spin is that the bonds are forgeries. My source scoffed at that. It's a coverup. Did you know they held a fallout exercise in NYC last week? (you might have linked to this; I am only halfway through the IF) semi-clandestine nuclear fallout drill held in NYC <http://www.prisonplanet.com/newyork-drill-for-possible-nuke-war.html> http://www.prisonplanet.com/new-york-drill-for-possible-nuke-war.html I wonder how many people looked at that story and thought "rehearsal." Warm regards, ***** From a Fellow Subscriber: My Way News - Report: N. Korea plans to fire missile toward Hawaii <http://apnews.myway.com/article/20090618/D98T1AR00.html> Its not good to be downrange in the firing range. Have to put your faith in US missile defense systems. It was good news while in Desert Storm 1, that the Army had the Patriot Missile system shooting down the scuds, but a few years latter learned that about 95% of the scuds just feel apart, but in Desert Storm 2 after watching two Korean Hypong 2 cruise missiles go by and one that was fifty feet above the bridge of the vessel at 1300 April Fools Day 2003, well after that I was not fooled by the so called Awacs umbrella

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coverage that the military was putting out. And I saw and heard that April Fool Day missile. ***** From a Fellow Subscriber: As you can see, banks, which have plenty of money, are trying to expedite the depression. Bob: A company I own has assets double the debt, great cash flow, 6 figures profitable ytd. Got a letter from bank Thursday saying they were calling my note! no reason why. ***** From a Fellow Subscriber: This is a ten minute clip from an Alex Jones interview of Aaron Russo. America: Freedom to Fascism Filmmaker Aaron Russo has exposed first-hand knowledge of the elite global agenda during this video interview. He exposes that Rockefeller told him the War On Terror is a fraud that will go on forever because you can never define a winner or loser. Money will be in an RFID chip implanted in your body. Rockefeller Reveals 9/11 FRAUD to Aaron Russo http://www.youtube.com/watch?v=7nD7dbkkBIA ***** From a Fellow Subscriber: Hi Bob—Rumor has it that Russian and Italian law enforcement are getting very close to busting the 9-11 perps—and that the 9-11-job was cocooned in a daisy chain of PRIVATE security firms that were MI-6-CIA-MOSSAD bucket shops—with Wall Streetmafia links—all these links are now being exposed by patriots in EU law enforcement—and all the “REAL” return addresses on the 9-11 perps are now coming out into the open—and as per your constant reporting in the IF and on the radio— countless times—it is the exact same illuminist criminal bankster gangs over and over again—the Enron rip-off—the DOT-COM rip-off---the 9-11 ritual murder atrocity---the GM take down-rip-off—all have a single return address— Wall Street—link is below— http://www.european911citizensjury.com/07b.htm PS—rumor has it that another NK missile test is imminent—and that china has ordered it’s fishing fleets out of any potential NK launch zones—all the above is well known to the US gov’t via US’s signals intelligence—rumor has it that US intelligence has intelligence advisors on the ground in Iran—but that the Obama-Sotero regime is so crassly stupid about the Iran operation that they are screwing it up from A-Z. —in your recent reporting in your latest Wednesday edition of the IF in regard to the whistle blowing of Dr. Charles Krauthammer MD—Dr. Krauthammer—who just happens to be Jewish and is also a Zionist and strong supporter of Israel—so for him to break ranks from his elite co-religionist cronies—to—“out”—Obama-Sotero as the 2nd coming of Trotsky who intends to lay waste to America with his crack pot Illuminist CFR-CLUB OF ROME—social engineering scams disguised as “cost cutting” Dr. Krauthammer is telling us all that Obama-Sotero hates America and absolutely hates Americans—and that this hatred is a core belief of his illuminist-Lucifarian religious belief system—this is why we ALL MUST BE DISARMED so that we can all be MASS MURDERED AT THE WALL ST ILLUMANIST CRIMMINALS CONVENIENCE.

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You have long exposed how incredibly corrupt the judges are in the US court system— this will make the subscribers eyes glaze over—rumor has it that Zionist Judge Larry Seidlin and his wife, like a couple of grifters, ripped of and 83 year old woman Barbara Kasler who also happens to be a co-religionist—and that they did some or all to the 83 year old Jewish lady—first they convinced her to sell them her $600K condo for $300K—then Judge Seidlin and Mrs. Seidlin suckered the 83 yr old Jewish lady to sell them a $50K piece of land for only $10-TEN DOLLARS-NOT A TYPO—the Seidlin’s also suckered the 83 year old Jewish lady to write them $500K in checks made out to them—that the Seidlin’s disbursed in the following manner—$130K to pay down their mortgage—$100K to buy a house in Pennsylvania—$54k for their daughters school tuition—NOW THAT’S “REAL CHUTZPAH” —pun intended—the old lady is suing to recover her losses—Judge Seidlin categorically denies all the above allegations— there is a pattern of co-religionists ripping of other co-religionists—the TMZ website that exposed Judge Seidlin is owned by a co-religionist of Judge Seidlin’s—just as I am a co-religionist of Judge Seidlin’s—Judge Seidlin also happens to be the judge who heard the Anne Nicole Smith paternity case—during the trial Judge Seidlin was so “moved” he dabbed a tear from his eye—now he is on trial himself—as per—IN THE CIRCUIT COURT OF THE 17TH JUDICIAL CIRCUIT, IN AND FOR BROWARD COUNTY, FLORIDA BARBARA MUMFORD KASLER, Plaintiff, Vs. LARRY S. SEIDLIN, BELINDA RAY SEIDLIN, BARBARA A. RAY, and OREN A. RAY, JUDGE: Defendant(s). links below http://www.tmz.com/tag/Barbara+Kasler/ http://blogs.browardpalmbeach.com/pulp/2009/06/judge_larry_seidlin_civil_lawsuit.php ***** From a Fellow Subscriber: Hi Bob—rumor has it that Al-Qaeda’ spokesman Adam Gadahn (a.k.a. Pearlman) is a scion of Jewish ADL—you can’t make stuff like that up—link is below. http://800poundgorilla.100webspace.net/geeklog//article.php?story=200906161526075 67 ***** From a Fellow Subscriber: Kennedy Health Bill couldn’t help but remember Mary Jo Kopechne... That\'s my perception of Teddy\'s knowledge of healthcare. Maybe it should be renamed the Chappaquiddick Health Care Bill as we will all die in the back of a Kennedy vehicle if it is passed. ***** From a Fellow Subscriber: The United States has entered the third and final stage in the life and death of a great country.

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America's history can be divided into three broad stages. The first stage was industrialization. This is what took the United States from a marginal nation of settlers, explorers, farmers, entrepreneurs and religious refugees to become the world's richest and most powerful country. The source of its wealth and power was its factories...and its people. The factories were the best in the world. And the people how labored in them were accustomed to hard work, saving, and self- discipline. There were no free lunches in America during this period. The fastest growing cities of the time were manufacturing centers - Chicago, Gary, Detroit, Pittsburg, and Birmingham. Thanks to its smokestacks and assembly lines, the US could make things better, cheaper and faster than any other country, with the possible exception of Germany before WWI and Japan after WWII. That is how the US became the world's largest creditor - by selling US-made goods to foreigners. And it's how the United States won WWI and WWII too. American factories could turn out more tanks, more planes, more guns and more butter than any other nation. And the United States had an abundant source of fuel too; "Texas Tea" they called it. After WWII America enjoyed its glory days. It was on top of the world...in practically every sense. The United States was #1. The New Deal had fundamentally changed Americans' relationship to the state. Federal meddlers began playing a larger and larger role in the economic life of the country. Soon, American attitudes evolved to fit the circumstances. With the world's reserve currency...a huge lead over its competitors...and a government that promiseto take care of its wants and needs, the US workforce relaxed. Gradually, it shifted from making things to buying them...while industry turned its focus from production to sales...and then, financing. Then, the United States entered the second stage: financialization. In this second stage, the center of gravity shifted from the wealth- producing factories to the financial centers - mainly Manhattan. Prices of real estate in New York soared. Wall Street came to be seen not merely as a place to invest the proceeds of honest toil...but a way to create wealth. The most ambitious college graduates turned from engineering and manufacturing first to sales and marketing and later to finance; because that's where the money was. At the peak, in the Bubble Epoch, 2003-2007, Wall Street was drawing in the world's leading scholars in mathematics and statistics... These people were creating the biggest debt bombs in history...exotic, complicated financial concoctions...that eventually blew up in their faces. Detroit went into a decline as early as the late '60s. GM continued to make cars, but it looked to financing as a way of make money. GMAC became the major source of GM's profits. Still mills along the Monongahela River began to rust in the '70s. Ships began to come to the US laden with goods in the '80s and '90s...and to go back empty. The US Fed tried to stimulate the US economy on several occasions, but it had a strange effect. It put more credit in the hands of US consumers - who used the money to buy goods from overseas. In effect, the US Fed was stimulating manufacturing in China! But in 2007-2008 the bubble in consumer debt blew up. GM went broke in May of '09. The financialization stage ended. In its place comes a new stage: politicization, the third and fatal phase of a great nation. Where is the money now? It took the train from Grand Central Station in Manhattan down to Union Station in Washington, DC. Want money? Ask Washington. It's pledged an amount equal to three times what it spent in WWII to the fight against deflation. Where is the power now? Just ask Chrysler bondholders; in the end it didn't matter what their contracts said...when the US government turned against them, their goose was cooked. The Obama Administration, owner of GM, now sets top salaries and determines what kind of cars the company will make. Washington also determines which businesses will be kept

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alive - AIG - and which will die - Lehman Bros. Now it's the politicians, not Wall Street, nor investors, who decide the allocation of big capital... And when ambitious young people buy a ticket to begin their careers, are they going to Milwaukee...to Manhattan...or to the lobbyists' mecca in Northern Virginia??? ***** G. Edward Griffin latest interview 1of9 federal reserve Part 1 youtube video: http://www.youtube.com/watch?v=4ubSjHtX4zc&feature=channel_page <http://www.youtube.com/watch?v=4ubSjHtX4zc&amp;feature=channel_page> Part 2 youtube video: http://www.youtube.com/watch?v=ZWqmJ4uK3FI&feature=channel_page <http://www.youtube.com/watch?v=ZWqmJ4uK3FI&amp;feature=channel_page> Part 3 youtube video: http://www.youtube.com/watch?v=XM5937nMowA&feature=channel_page <http://www.youtube.com/watch?v=XM5937nMowA&amp;feature=channel_page> Part 4 youtube video: http://www.youtube.com/watch?v=gS2V4yLX3ig&feature=channel_page <http://www.youtube.com/watch?v=gS2V4yLX3ig&amp;feature=channel_page> Part 5 youtube video: http://www.youtube.com/watch?v=tn3HN1zzfAE&feature=channel_page <http://www.youtube.com/watch?v=tn3HN1zzfAE&amp;feature=channel_page> Part 6 youtube video: http://www.youtube.com/watch?v=ot6Q5czAN6U&feature=channel_page <http://www.youtube.com/watch?v=ot6Q5czAN6U&amp;feature=channel_page> Part 7 youtube video: http://www.youtube.com/watch?v=_9nFjL7LIUw&feature=channel_page <http://www.youtube.com/watch?v=_9nFjL7LIUw&amp;feature=channel_page> Part 8 youtube video: http://www.youtube.com/watch?v=epDYOok9kqI&feature=channel_page <http://www.youtube.com/watch?v=epDYOok9kqI&amp;feature=channel_page> Part 9 youtube video: http://www.youtube.com/watch?v=HOnUcmOJszk&feature=channel_page <http://www.youtube.com/watch?v=HOnUcmOJszk&amp;feature=channel_page> ***** COMMODITIES The DOE reports crude oil inventories down 3.87 m/b, gas rose 3.38 m/b and distillates rose 308,000 barrels. EIA reports natural gas inventories were up 114 bcf. Gold ended the week down 0.4% to $935 (up 6.0% y-t-d). Silver fell 4.5% to $14.20 (up 25.7% y-t-d). July Crude slipped $2.45 (5-wk gain of $12.59) to $69.59 (up

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56% y-t-d). July Gasoline dropped 5.3% (up 82% y-t-d), while July Natural Gas rose 5.0% (down 28% y-t-d). September Copper fell 5.7% (up 59% y-t-d). July Wheat declined 5.0% (down 9% y-t-d), and July Corn sank 6.2% (down 1.9% y-t-d). The CRB index fell 3.6% (up 10.1% y-t-d). The Goldman Sachs Commodities Index (GSCI) declined 3.2% (up 31% y-t-d). ***** Iraqi Oil Minister accused of mother of all sell-outs http://www.independent.co.uk/news/world/middle-east/iraqi-oil-minister-accused-ofmother-of-all-sellouts-1707906.html ***** GOLD, SILVER, PLATINUM AND PALLIDUM Wednesday was a good day for gold and silver, but the shares were trying to find themselves. Spot gold rose $4.10 to $935 and the August contract was $3.20 higher and the access market was an additional $6.60 higher. Spot silver rose $0.15 to $14.27. July was $0.03 higher and the access market was $0.10 higher. Rumors reach us that our government had gold taken down late last week when it was at $960. On Friday, they dropped gold $21.40 for good measure. We believe Goldman has been in and out of the market for months via trading through other firms. The practice is known as jitney trades. We believe they were acting for the government. Gold open interest fell 2,588 contracts to 371,997, as silver OI fell 2,370 to 103,981. The HUI fell .65 to 337.49 and the XAU lost .79 to 139.77. The yen rose .0088 to $.9569; the euro rose .0121 to $1.3964; the pound fell .0012 to $1.6424; the Swiss franc rose .0084 to $1.0781; the Canadian dollar rose .0033 to $.8847 and the USDX fell .44 to 80.27. Oil rose $0.38 to $70.85; gas fell $0.01 to $2.02 and natural gas rose $0.13 to $4.26. Copper fell $0.01 to $2.26; platinum fell $16.70 to $1,205 and palladium rose $1.95 to $244.75. The CRB rose .97 to 256.82. The Dow fell 7 to 8435, the S&P fell 13 and Nasdaq rose 70. The 2-year was 1.15%, the 10’s were 3.69%, one-month Libor was 0.31% and 3-month was 0.61%. Early Thursday the Dow was up 9 at 8446; the S&P rose 11, Nasdaq fell 23 and the FTSE fell 16 Dow points. The Nikkei fell 137; the CAC fell 8 and the DAX fell 8. The yen fell .0012; the euro fell .0029 and the pound fell .0175. The 2-year was 1.16%; the 10‘s were 3.69%. Oil was up $0.27; gas rose $.0001 and natural gas rose $0.04. Gold rose $1.50 to $937.50, silver fell $0.02 to $14.26 and copper fell $0.01. On Thursday, spot gold fell $1.60 to $933.40 as August traded $1.30 lower. Silver was off $0.05 at $14.22 as July was $0.03. Gold open interest rose 3,839 contracts to 375,836, as silver OI rose 4,177 to 108,158. The HUI lost 8.65 to 328.84 and the XAU lost 2.23 to 137.54. The yen fell .0091 to $.9582; the euro fell .0051 to $1.3904; the pound fell .0070 to $1.6349; the Swiss franc fell .0066 to $1.0768; the Canadian dollar fell .0047 to $.8064 and the USDX rose .47 to 80.64. Oil rose $0.19 to $71.22; gas fell $0.01 to $2.02 and natural gas fell $0.18 to $4.07. Copper fell $0.01 to $2.25; platinum rose $2.40 to $1,207 and palladium fell $2.55 to $240.40. The CRB Index rose .03 to 256.85. The Dow rose 58 to 8,555; S&P rose 69 and Nasdaq fell 4 Dow points. The 2year T-bills were 1.25% and the 10’s were 3.82%. On Friday, we had a decent day, but nothing to write home about. Spot gold rose $2.20, spot silver fell $0.3 to $14.19 and July was off $0.01 more. The HUI rose 11.04 to 339.88. AEM rose $1.43 to $52.73, up 2.79%; GG rose 3.67%, or $1.23 to $37.73; SSRI rose 4.36%, or $0.79 to $18.92 and MFN rose 5.73%, up $0.39 to $7.20.

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The second London physical fixing was $935.25. During the day silver traded $0.20 higher but could not hold the gain. Gold open interest rose 1,177 contracts to 377,013, as silver OI fell 48 to 107,740. The COT report for this past Tuesday showed a net reduction in commercial short interest of 17.569 contracts, which is good for those who are long. The followers of our President passed the security bill and with it the expanded credit facility for the IMF, which means 404 tons of gold can be sold. We believe it has already been sold and this is the short cover. The yen fell .0054 to $.9619; the euro fell .0008 to $1.3956; the pound rose .0080 to $1.6504; the Swiss franc fell .0011 to $1.0794; the Canadian dollar fell .0030 to $.8817 and the USDX fell .34 to 80.24. Oil fell $1.82 to $69.55; gas fell $0.10 to $1.93 and natural gas fell $0.04 to $4.05. Copper fell $0.03 to $2.24; platinum rose $1.90 to $1,209 and palladium rose $8.30 to $2.48. The CRB fell 4.06 to 252.79. From a Fellow subscriber: Hello Mr. Chapman, Below are some comments I received from a friend regarding the Japanese men and the U.S. bonds going over to Switzerland. My friend is of Japanese heritage and grew up in Okinawa as an army brat. The seized bonds have been determined to be counterfeit and the two men are priorconvicts in Japan who have strong ties with the local criminal ring (yakuza). The seized bonds have been linked to some cooperative on-going operation the Japanese mafia had with the Italian mafia. Probably less a N. Korea this or that issue but more of a mafia / money laundering issue. Japan has been purchasing over 800 billion dollars in US bonds over the past decade (aside from their official purchases / holding nearly a trillion dollar in auctioned US bonds, bringing the total to nearly 2 trillion in dollars based reserves) that has not been accounted for in the official US deficit record as the bonds were not auctioned through official channels but acquired as a result of like-kind exchanges or in forms of “payment” of gratuity by Japan for the military protection and facility allocations within Japan. You know how the system works. after all, It’s mutually beneficial for the two governments (though not necessarily for its citizens). Thanks for your great work on the IF and radio. ***** Gold miners not finding new deposits to meet future needs – study http://www.miningweekly.com/article/gold-industry-not-finding-new-deposits-tomeet-future-needs---study-2009-06-16 ***** The 1929 & 2007 Bear Market Race to The Bottom Week 87 of 149 http://www.gold-eagle.com/editorials_08/lundeen061309.html ***** Strange Inconsistencies in the $134.5 Billion Bearer Bond Mystery http://seekingalpha.com/article/143462-strange-inconsistencies-in-the-134-5-billionbearer-bond-mystery

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***** Italy has asked US authorities to check the authenticity of what appear to be US government bonds worth $134 billion seized near the Swiss border, a senior Italian tax police officer said on yesterday. Early in June, Italy's Guardia di Finanza, or tax police, said they had seized the US bonds from two Japanese nationals at the Chiasso rail station in the north of Italy close to the frontier with Switzerland. "We have already established contact with American colleagues who should give an expert opinion on the bonds to establish their authenticity or falseness," said Rodolfo Mecarelli, head of the financial police in the Como province, which includes Chiasso. Mecarelli said the tax police and the magistrate investigating the case have strong doubts about the authenticity of both types of bonds found in the baggage of the two individuals. The bonds comprised 249 "Federal Reserve" bonds of $500 million nominal value each and 10 "Bond Kennedy" with a $1 billion nominal value, the tax police said on June 4 in a statement on the seizure of the bonds. CANADA April Wholesale Sales fall 0.6%. May Leading Indicators down 0.1%. May CPI rises 0.7% MoM, 0.1% YoY. April retail sales down 0.8%, -0.5% ex Autos. ***** From a Fellow Subscriber: Hi Bob, We Canadians are in trouble. Canada just started operating this computer monster. They say it is for research. I say the research will be done on Canadian citizens. Spying and gathering every bit of data conceivable on Canadians. They will likely know everything you say, to whom it is said, everywhere your money is, everywhere you go, your medical records and among much more 24 hour electronic surveillance. Notes on the size and power of the new computer: Almost everything about the system sounds improbable. It uses the same amount of energy, at peak consumption, as 4,000 homes. It is about 30 times more powerful than the next-fastest research computer in Canada. It can whirl data through its digital veins at the rate equal to about two DVD movies a second. It is among the 15 fastest computers in the world, and the fastest outside the United States. Or think of it this way: If you've purchased a decent home computer lately, it may have come with a relatively fast 2.53 gigahertz processor. Or maybe you shelled out more for a fast, top-of-the-line “quad core” system, which runs on four such processors. U of T's new toy runs on 30,240 of them. Canada's monster computer roars to life Omar El Akkad From Thursday's Globe and Mail, Thursday, Jun. 18, 2009 03:51AM EDT http://www.theglobeandmail.com/news/technology/canadas-monster-computer-roarsto-life/article1186431/ *****

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LATIN AMERICA There seems to be no stopping Brazilian car sales, as they rose yet again in the first two weeks of June, the National Automotive Dealership Association, Fenabrave, said Wednesday. Thanks to a continued tax break for auto makers, new car prices have declined by as much as 7.5% from where they were last year. That's helped boost sales continuously and the first weeks of June have been no exception. So far, car sales rose 13.01% to 106,119 units, up from 93,902 units sold in the first two weeks of May. Sales are also up 11.2% from the 95,387 units sold last year when Brazil was on the cusp of a record breaking year for car sales. When light trucks are thrown in the mix, auto vehicle sales rose 11.2% on the month and 10.3% on the year to 128,103 cars, pick up trucks and sport utility vehicles. Fiat (FIATY) was the market leader with a 26.3% market share so far this month, followed by Volkswagen (VLKAY) with a 24.8% market share and General Motors (GM) with 20%. The Volkswagen Gol remained the number one car sold again over the last two weeks. The pace of consumer inflation in Brazil's largest city, Sao Paulo, slowed in the four weeks ended June 15, as housing and transport prices decelerated, the Fipe research foundation said Wednesday. Fipe, which is affiliated with the University of Sao Paulo, said its consumer price index rose 0.19% in the period, compared with a rise of 0.23% in the four weeks ended June 7. The figure was in line with market forecasts for an increase of between 0.14% and 0.23%. Housing prices picked up 0.27% in the four weeks ended June 15, compared with an increase of 0.29% in the four weeks ended June 7. Transports prices dropped 0.24% in the period, compared with a fall of 0.17% in the previous period. 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 9.25% from 10.25% earlier this month. Chile’s peso is poised to be the world’s best performing currency this week after the government announced plans to extend its dollar sales in the foreignexchange market to fund an additional $4 billion in stimulus. The peso jumped 4.9% this week. ***** Water for Sale http://www.coha.org/2009/06/water-for-sale/ ***** EUROPE The euro zone's balance in trade in goods with the rest of the world increased in April to the largest surplus since October 2007, boosted by trade in manufactured goods, data from the European Union's statistics agency showed Wednesday. The 16 countries that use the euro had a combined surplus in their trade in goods of EUR2.7 billion, compared with a surplus of EUR1.8 billion in March, a figure that was revised from a smaller surplus of EUR0.4 billion. Economists surveyed by Dow Jones Newswires last week had forecast a trade

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deficit of EUR1.5 billion. Exports from the euro zone declined to EUR102.1 billion from EUR109.6 billion in March, while imports decreased to EUR99.4 billion in April from EUR132.0 billion a month earlier. The total trade balance for the euro zone between January and April, however, was a deficit of EUR8.1 billion although it was a lower deficit than the EUR9.5 billion a year earlier. Trade in manufactured goods, which include chemicals and machinery, totaled a surplus of EUR41.4 billion between January and March -the most up-to-date months the data cover. While that was down from the EUR67.3 billion surplus this time in 2008 it compared with a deficit of EUR53.7 billion in the trade of primary products which include food, drink and energy products. The deficit for this sector was largely due to a smaller surplus in the trade of food and drinks rather than the EUR49.0 billion deficit in trade of energy products between January and March, which was smaller than the EUR75.3 billion deficit over the same period a year earlier, Eurostat data show. The breakdown of the energy trade balance shows that imports of energy - the euro zone imports much of its oil and natural gas - declined 36% in the first three months of 2009 from the same period a year earlier while exports fell 39% between January and March this year from a year ago. Among the largest euro-zone economies Germany reported the largest surplus in the first three months of 2009 of EUR27.4 billion. While that was down from a surplus of EUR50.4 billion a year earlier it compared with trade deficits from both France and Italy. Swiss Adjusted Real Retail Sales rise 1.2% on April, same than last month. Some 1.9 million jobs disappeared across the European Union in the first three months of this year -- the sharpest drop in payroll numbers on record, the EU statistical agency Eurostat said Monday. Falling demand for goods and services both in Europe and in export markets is forcing companies to shed workers, sending jobless numbers to the highest level in a decade. Eurostat said the number of people employed in the EU fell 0.8 percent in the first quarter compared to the fourth quarter of 2008, the worst drop since it started collecting figures in 1995. The number of workers in the 16 nations that use the euro also fell 0.8 percent from the previous quarter as the region shed 1.2 million jobs. Just under 223.8 million people were employed in the EU in the first quarter, 146 million of them in euro-zone nations, Eurostat said. EU business federation Business Europe forecasts that some 4.5 million workers may lose their jobs this year as company profits plunge. It represents more than 20 million European companies. Sweden's unemployment rate soared higher in May, substantially above expectations, throwing into question just how much the country's labor market will deteriorate in the coming years from financial chaos. The Swedish jobless rate in May surged to 9% from 8.3% in April and 5.9% in May of 2008, Statistics Sweden said Thursday. Russian gold and foreign-exchange reserves fell by $2.9 billion to $406.6 billion in the week to June 12, the central bank said Thursday. This follows an increase of $8.4 billion in the previous week.

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After reaching a record high of $597.5 billion in early August, reserves fell dramatically when the central bank spent more than $200 billion of them on propping up the struggling ruble. Poland's industrial output fell at a slower pace in May, a calendar-induced effect that will likely have no influence on the central bank's decision to resume rate cuts next week. Industrial output in May fell by an annual rate of 5.2%, which is slower than a revised 12.2% year-on-year decline in April, according to production figures issued Friday by the Central Statistical Office, or GUS. Polish producer prices rose at an annual rate of 3.7% in May, below expectations and down from April's revised 4.8% rise, the Central Statistical Office, or GUS, said Friday. Month on month, May producer prices fell 0.3%, from April's revised 0.9% decrease. The figures are preliminary. The country's seasonally-adjusted unemployment rose to its highest level in three years in the first quarter of 2009, as the economic slowdown continued to hit the real economy, statistics office Istat said Friday. In the first quarter, unemployment rose to 7.3% from an upwardly revised 7.0% in the fourth quarter of 2008, as an increasing number of Italians in the under-34-years category lost their temporary and freelance work contracts. Istat said the unadjusted unemployment rate was 7.9% compared with 7.1% in the first quarter of 2008. The level of unadjusted unemployment was the highest in the southern region of the country, where it rose to 13.2% on the quarter, more than double that of the north. Dutch consumers became slightly more pessimistic in June compared with a month earlier, the National Bureau for Statistics, or CBS, said Friday. The consumer confidence index stood at -24 in June, a change for the worse from May's reading of -23. Consumer confidence fell slightly in June as Dutch gross domestic product, exports and investments decreased in the first quarter of 2009, CBS said. German producer prices were unchanged in May and fell 3.6% from a year earlier, the Federal Statistics Office, Destatis, reported Friday. That is almost exactly in line with an advance survey of economists by Dow Jones Newswires. The data broke a six-month sequence of price declines, due largely to a 0.7% rebound in energy prices. Stripping out the energy component, the index continued to decline, by 0.3% from April, and by 2.5% from a year earlier. In April, prices had fallen 1.4% from March and were down 2.7% year-on-year. Destatis said that prices for intermediate goods such as metals continued to show pronounced weakness. Prices for various categories of steel products were down by anything between 32.3% for sheet and 52.7% for construction steel. It also noted sharp year-on-year declines for non-ferrous metals, and for cereals and animal feed. Fertilizer prices were a rare exception to the trend, rising 10.5% on the year, despite a 7.1% fall from April. Prices for consumer goods on average fell 0.2% from April and were down 1.3% from a year ago, while food prices were down 0.3% on the month and 3.4% on the year. Destatis singled out milk prices as being particularly weak, falling by 1.9%. They have now fallen for nine months in a row. Within the energy component of the index, electricity prices rose 2.0% from April, but were still down 2.0% from a year earlier. Natural gas prices fell 0.7% from

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April but were up 0.9% from April 2008. Petroleum products were up 1.7% from April, but down 26.4% from a year earlier. Today three Swiss politicians from the center-right SVP called for a "healthy currency" referendum to reverse the 1999 vote which cut the link between Switzerland's currency, the Franc, and the partial backing of its central-bank Gold Bullion holdings. Commercial banks in the 16-nation euro region may lose a further $283 billion by the end of next year as the financial crisis forces them to write off bad loans, the European Central Bank said. ‘Hard-to-value assets have remained on bank balance sheets and the marked deterioration in the economic outlook has created concerns about the potential for sizeable loan losses. As many as 14% of investment grade European companies will be unable to meet their cash requirements in the next 12 months even as bond issuance is at record levels, according to Moody’s. For high-risk, high-yield companies the situation is worse, with as many as 20% failing to have sufficient cash to meet outflows. OAO Sberbank, VTB Group and Russia’s other lenders are facing a surge in ‘troubled assets’ that may total $213 billion, S&P said. As much as 38% of all assets held by Russian banks… may become problematic by the end of 2011. ‘The extent of the damage and its impact on the Russian banking industry will depend, in our view, on government policies to support banks and shore up troubled industrial enterprises, including state-owned companies,’ said Scott Bugie, an S&P analyst.” ***** Any talk of a healthy francs http://translate.google.com/translate?js=n&prev=_t&hl=en&ie=UTF8&u=http%3A%2F%2Fwww.tagesanzeiger.ch%2Fwirtschaft%2Fkonjunktur%2FD as-Gerede-von-einem-gesundenFranken%2Fstory%2F19457166&sl=auto&tl=en&history_state0 ***** EU Backs New Financial Agencies to Unify Oversight http://www.bloomberg.com/apps/news?pid=20601110&sid=aPSK3WtHVa5U ***** Serbia: Ten Years Later http://www.truthout.org/061809M ***** SERBIA & KOSOVO RULED BY THE ALBANIAN KLA MAFIA / HEROIN TRAFFICKING AND DEATH!!! http://revolutionarypolitics.com/?p=1230 ***** ENGLAND Gross mortgage lending eased in May, but it is likely that very low remortgaging volumes masked a slight improvement in lending for home purchases, data from the Council of Mortgage Lenders showed Thursday. Gross mortgage lending - which includes both lending for house purchase and remortgage - fell to an estimated GBP10.3 billion in May from GBP10.5 billion in April, leaving it 58% lower on the year, the CML said.

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Although recent signs from the house market have been encouraging, the CML doesn't expect a significant recovery in sales in the coming months, CML economist Paul Samter said in a statement. "Lending volumes appear to have stabilized at extremely low levels, but the weak labor market and lenders' limited access to funding will constrain activity for some time yet," he said. May CBI Industrial Trends Survey rises to -51 from -56. The UK public sector borrowed a net GBP19.9 billion in May, the highest level for any month since records began in 1993, as the recession continued to bite into tax revenue, the Office for National Statistics reported Thursday. May's borrowing was very close to economists' expectations of GBP20.0 billion. In May 2008, the public sector borrowed a net GBP12.2 billion. In the first two months of the financial year, which started in April, the public sector borrowed a net GBP30.5 billion, compared with GBP14.1 billion in the yearearlier period. The UK government is targeting a full-year PSNB of GBP175.0 billion. Central government current receipts fell by 10.8% on the year earlier, with revenues declining across the board. Value-added tax receipts for central government were down 23.3% on the year, while taxes on income and wealth fell 11.4%. Meanwhile, central government current expenditure expanded 7.4% on the year. That included a 13.2% increase in interest payments and 7.9% increase in net social benefits on the year. The public sector net cash requirement was GBP18.8 billion in May, compared with GBP9.6 billion in May 2008. A Dow Jones Newswires survey of economists had forecast a PSNCR of GBP17.5 billion. In the financial year to date, the net cash requirement was GBP23.5 billion, compared with a year earlier PSNCR of GBP6.7 billion. That is a record cash requirement. The government target for its net cash requirement for the current fiscal year is GBP188.6 billion. "Underneath the headline gross lending figure, it's likely that a moderate improvement in house purchase lending in May has been offset by very low remortgaging volumes as borrowers stay with existing deals," he added. M4 Money Supply (MoM) rises 0.2% in May. The British Bankers’ Association may expand the pool of banks that set the London interbank offered rate in a bid to bolster confidence in the benchmark for more than $360 trillion of financial products around the world. Banks without a physical presence in London may apply to join the panel of members that contribute to the Libor-setting process, the BBA said on its Web site today. Banks will have to be “material participants” in the London market, the BBA said yesterday in an e-mail. A year ago, the organization said it would look to expand the panel of contributors and possibly add a second daily survey. What they fail to tell you is that the Federal Reserve and the US government provided funding and guaranteed the Libor rate, which they deliberately took from 4.625% to 0.61% in the three month setting. The entire market is bogus. UK-owned banks cut their overseas lending for the second straight quarter in the three months to the end of March, although much less sharply than at the end of 2008. The Bank of England Friday said U.K. banks reduced their lending to borrowers outside the country by $108.1 billion to stand at $3.6 trillion. In the final quarter of last year, U.K. banks cut their overseas lending by a massive $723.6 billion.

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***** Parents banned from taking pictures of their own children at sports day http://www.telegraph.co.uk/education/educationnews/5560978/Parents-bannedfrom-taking-pictures-of-their-own-children-at-sports-day.html ***** JAPAN May Machine Tool Orders decrease 79.2%. AUSTRALIA AND NEW ZEALAND Economists surveyed by Dow Jones Newswires had forecast a fall of 3.0% in first quarter housing starts from the fourth quarter. The Australian Bureau of Statistics also reported Wednesday that the number of private-sector houses started in the first quarter fell 4.1% from the previous quarter to 21,428. The trend estimate for the total number of housing starts, which further smoothes the seasonally adjusted numbers, fell 8.5% to 30,388 from the fourth quarter. Economists surveyed by Dow Jones Newswires had forecast a fall of 3.0% in first quarter housing starts from the fourth quarter. The Australian Bureau of Statistics also reported Wednesday that the number of private-sector houses started in the first quarter fell 4.1% from the previous quarter to 21,428. The trend estimate for the total number of housing starts, which further smoothes the seasonally adjusted numbers, fell 8.5% to 30,388 from the fourth quarter. Australian merchandise imports fell 5% to A$16.40 billion in May from A$17.20 billion in April in seasonally adjusted terms, the Australian Bureau of Statistics said Thursday. The bureau said machinery and transport equipment accounted for the largest proportion of imports in original terms and were valued at A$5.54 billion. Monthly trade figures for May, which will include seasonally adjusted import and export figures, will be issued on July 2. Australian business confidence improved markedly in the second quarter of 2009, a private sector survey showed Thursday, although export and employment indicators remain subdued. The Westpac Banking Corp.-Australian Chamber of Commerce & Industry expected composite index - a gauge of business confidence - bounced to 47.6, from 35.3 in the first quarter. The industrial trends actual composite index - a measure of actual business conditions - rose to 38.3 in the June quarter from 34.4 in the first quarter. Still, the index remains at levels not consistently seen since the early 1990s recession.

*****
Stun gun death: Taser fired 28 times http://www.smh.com.au/national/stun-gun-death-taser-fired-28-times-20090618ciio.html *****

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AFRICA ***** Quarter of men in South Africa admit rape, survey finds http://www.guardian.co.uk/world/2009/jun/17/south-africa-rape-survey ***** HEALTH FOOD CHOICES AFFECT BRAIN CHEMISTRY Most of us think we select food based on taste or because we know it is good for us. The unconscious food choices we make affect our brain chemistry and overall mood. Foods can act like antidepressants or speed. When you think about it, we selfmedicate ourselves with food everyday. Long-term use of some foods can deplete our system of vital nutrients, which can create the building blocks for disease. SUBTANCES THAT MANIPULATE FOOD Some combinations of foods can make all the difference when considering nutrition. The obvious add-ons you are probably thinking about are the food additives, dyes and preservatives. However, we are so used to sugar and caffeine we rarely stop and consider how these substances modifies the food we eat and how this affects our brain. Certain food substances affect the neurotransmitters of the brain and change how the brain cells communicate. People use caffeine for more than just to stay awake. Without caffeine half of America would be constipated. Many people depend on their morning coffee to move their bowels each day. There have been many studies on sugar and caffeine. Although caffeine is known to suddenly lift mood, one study suggested that caffeine affects certain neurotransmitters (such as serotonin) that are linked to depression, violence and moodiness. COFFEE RICHTER GRAPH Many people complain about being addicted to caffeine but the science behind the coffee studies indicate that no matter how addicted you are, just one cup of coffee does the trick. Dr. Andrew Baum of the medical psychology department at Uniformed Services University says that you don’t need more than one cup of regular coffee to get the same result. However, coffee drinkers know their caffeine. Under blind taste tests they know which coffee is the decaf and which has the caffeine. Also, the study concluded that more people medicate themselves with regular coffee to counter their depression. It should also be noted that coffee has thousands of years of safe use compared to the antidepressant drugs. Of course anything in excess can wreck the body. More than 2 to 4 cups of regular coffee per day can contribute to anxiety, nervousness, mood swings and insomnia. NOTE: beware there is more caffeine in some over-the-counter products such as Midol and Extra Strength Bayer, which have more caffeine than in a cup of brewed coffee, espresso or a Mountain Dew soft drink. KEEPING IT STRAIGHT Who knew that a little cup a java could upset the body’s chemistry to the point of psychiatry? Dr. Simon Young, Department of Psychiatry at McGill University in Montreal warns that when our brain has low serotonin we are susceptible to psychiatric symptoms. This would explain why air traffic controllers struggle with depression living on caffeine during their stressful shift in the control tower. Between 80 to 90% of Americans are addicted to caffeine and at least 15% are so concerned they are cutting back or have stopped eating foods with caffeine. Adding more serotonin to the brain

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can relieve depression and violent tendencies. We will examine how we can achieve this with natural foods. WHY SUGAR? When people get depressed they often turn to sugar to relieve the blues. Americans eat more sugar during the winter than any other season. You may recognize fall/winter depression known as SAD (seasonal affective disorder). Some people are more sensitive to light and when the days become shorter their mood shifts and depression can creep in. People who have SAD usually crave sweets and starches, which help them to fight the winter blues. Dr. Norman Rosenthal, a SAD researcher at the National Institute of Mental Health, says that the normal person after they eat carbs or sugar feel less alert and less energetic but the SAD individual has the opposite reaction. Carbohydrates and sugar have become an antidepressant to the person suffering from SAD. No wonder the WHO wants to regulate foods like drugs under the Codex Food Harmonization Code. Does science know why the SAD individuals have the opposite reaction to sugar and carbs? One explanation is that the depressed people already have abnormal brain chemistry stemming from metabolism and serotonin levels. Eating these foods boosts their serotonin levels. Should people who suffer from SAD avoid sugar and carbohydrates especially during the winter months? No. Avoiding these foods only promotes a deeper depression. The body is sending a strong biological signal to eat these foods the point of addiction. Going on a highprotein, low carb diet would probably be fatal. You can cut back on the sugar and eat more carbs like dried beans, pasta, vegetables, cereal, whole grain bread and crackers. These foods will work just as well but at a little slower rate helping to balance out the metabolism. It is advisable to avoid excessive alcohol or caffeine as medication for the winter blues. These foods tend to increase anxiety and adverse mood swings. SOME FOOD SUBSTITUTES Studies have shown that eating more green vegetables lightens your mood and can help fight SAD or depression. Why do greens help? They contain folic acid (folate) and many who have SAD or depression have a folate deficiency. Folic Acid is a B vitamin and the central nervous system depends on B vitamins. You will find high concentrations of folate in legumes. Dr. Young at McGill University found that by eliminating the folate deficiency it cures depression. His research revealed that those with depression and other psychiatric disorders had a much lower folate level than healthy, sound-minded individuals. When you have low folate it causes the serotonin level in the brain to severely decline. With as little as ¾ cup of spinach you can relieve depression. It is best to get your folate from foods rather than getting too much from pills. Other foods that contain vitamins known to lift mood are; Brazil nuts, tuna, swordfish, sunflower seeds, oat bran and whole wheat. THE MOOD ELEVATOR One study surprised me because we know garlic helps to lower cholesterol and thin the blood. However researchers say that it also has a positive effect on mood. The study by German researchers at the University of Hannover stated that the test group that had garlic had a greater feeling of well being and a better mood. They also stated that the garlic group reported feeling less fatigued, anxious, agitated and irritable. No wonder garlic is the most popular over-the-counter product in Germany. GETTING HOT UNDER THE COLLAR

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Dr. Paul Rozin of the University of Pennsylvania psychology department researched the effects of capsaicin in hot peppers and how it affected depression in people. The hot pepper induces a rush of endorphins to the brain, which can produce a temporary high. How does this work? According to Dr. Rozin the hot taste in the mouth stimulates nerve endings to send a chemical signal to the brain that you ate something very hot. The brain releases natural painkillers (endorphins) that work similar to a shot of morphine to stop the pain. If you keep eating the hot peppers the brain continues to release endorphins and you can get a buildup of endorphins creating a “pleasure rush.” According to this research, it is hard to stay depressed when eating hot peppers. YOUR NATURAL TOOLS Obviously changing the way you eat will have a significant impact to help with depression, anxiety, insomnia, mood swings, low energy etc. If you can’t seem to eat right or you think you need a little extra nutrition to get you over the hump, I can suggest the following concentrated organic products from Apothecary Herbs; Body Foundation Food Mix (folic acid, vitamin B plus plant protein, amino acids and other vitamins), Circulation Formula (capsaicin) or All-In-One or Heart/Cholesterol/BP formula (capsaicin and garlic). To help tone the bowel so you are not dependent on caffeine, use the Bowel Formula A. For any remaining feeling of anxiety or stress use Relaxation Formula, Valerian Root or Emotional Stress Formula. These are all at Apothecary Herbs (the manufacturer of these products) http://www.thepowerherbs.com toll free 866-229-3663, International 704-875-8010. EMERGENCY ALERT!! The WHO has upgraded their pandemic alert for the swine/bird flue to level 6. If you haven’t gotten your Pandemic Kit from Apothecary Herbs now is the time. UPGRADED PANDEMIC KIT – Call Apothecary Herbs 866-229-3663, International 704-875-8010 or http://www.thepowerherbs.com each kit contains 8 products for 2 adults for 10-day pandemic in a handle travel case for just $175.00. OUR VERSION OF THE ECONOMIC STIMULUS – Apothecary Herbs is offering 15% off your total order before shipping when you print off your shopping cart order online or fill out the catalog order form and mail in your order with your check or money order. Get prepared, healthy and save – what could be better than that? International orders can send an International Money Order and save 15%. Apothecary Herbs, P.O. Box 918, Huntersville, NC 28070 USA. EXTRA HEART ATTACK PREVENTION In addition to the heart strengthening therapies above, while you have some extra prevention on hand for the onset of a heart attacks. For a combo of five potent formulas in a handy carry pack for emergencies especially when you can’t get medical attention - look for the Heart Attack Pack (just $99.00) at Apothecary Herbs http://www.thepowerherbs.com 866-229-3663, International 704-875-8010. YEAR’S SUPPLY OF HERBAL MEDICINE – Stock up with over 90 products designed to protect your immune system, cleanse the body and address what ails you. NOW SAVE 15% on this package with the STIMULUS DISCOUNT. Call Apothecary Herbs 866-229-3663, International 704-875-8010 http://www.thepowerherbs.com HERBS FOR PETS - Dog & Cat Immune Booster Formulas plus Dog & Cat Congestion Formulas plus toxic-free flea and tick collars, shampoo and spray at

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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. 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 sundried. This is a true artisan sea salt providing richness as well as a smooth and elegant flavor to food. 1/2 pound ground unrefined Portuguese Sea Salt® just $8.50 at Apothecary Herbs 866-229-3663, International 704-875-8010 http://www.thepowerherbs.com. HERB TALK LIVE – with Herbalist Wendy Wilson every Tuesday & Thursday at 7:00 pm EST on AVR www.theamericanvoice.com and Thursday at 4:00 pm on WBCQ 7.415 and Saturday 7:00 am on GCN www.gcnlive.com. Free radio show archives at http://www.thepowerherbs.com #10 CANS SURVIVAL www.freezedryguy.com. FOOD – call Freeze Dry Guy 866-404-3663 or

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Ritalin ADHD Drug Linked to 500 Percent Increased Risk of Sudden Death in Children http://www.prisonplanet.com/ritalin-adhd-drug-linked-to-500-percent-increased-risk-ofsudden-death-in-children.html ***** Sw ine Flu Vaccinati on Poses Serious Threat to Your Healt h http://euro-med.dk/?p=9152 ***** The Tattoo Vaccine http://health.msn.com/healthtopics/ vaccinations/articlepage.aspx?cpdocumentid=100240311&gt1=31049 ***** Just to update you on some upcoming vaccine events: I will be traveling with Dr. Andrew Moulden across the nation beginning with a talk in Michigan June 26. For those who may not know, Dr. Moulden is a MD, PhD brain specialist who is able to PROVE that ALL vaccines can cause micro-vascular strokes in ALL major organs of the body. This is the first time that a medical doctor is able to show the mechanism of injury and how it happens within an hour after vaccination. Dr. Moulden is proving what I have been SCREAMING for years and if you know 42

anyone who is on the fence about this vaccine issue...this will eliminate and doubts about the dangers of vaccines. We are trying to save babies lives! This is the most incriminating evidence ever brought out against vaccines. You will see it for yourselfwith your own eyes. PLEASE, refer your friends and families to my website for all of our scheduled talks. Get to one yourself and witness the historical fall of the vaccine industry. We are out to "shut them down" with public out-cry! When enough people stop getting the toxic injections, they will have to pay attention! The pediatricians do not know what they are doing! Pastors are not aware that vaccines are made on aborted baby organs! YES, the vaccine researchers pay a fee to the abortionists to give them whole, live babies to harvest vaccines on! See the attached flyers and please try to come and also encourage your friends to attend. Forward this Email to all who you know!! This will be life-changing for all. See Moulden's bio and you will understand the power in this event. http://www.childhoodshots.com/ ***** VACCINE NATION http://www.youtube.com/watch?v=bdF4AEYHRvY ***** Health insurers refuse to limit rescission of coverage http://www.latimes.com/business/la-fi-rescind17-2009jun17,0,3508020,full.story ***** 9,200 potentially deadly Fort Detrick pathogens possibly missing <http://www.washingtonpost.com/wpdyn/content/article/2009/06/17/AR2009061703271.html> --FBI investigators concluded that Fort Detrick probably was the source of the anthrax spores used in the deadly mailings of 2001. --Ebola virus, anthrax bacteria, botulinum toxin, hemorrhagic fever and others 'not accounted for' 18 Jun 2009 An inventory of potentially deadly pathogens at Fort Detrick's infectious disease laboratory found more than 9,000 vials that had not been accounted for, Army officials said yesterday, raising concerns that officials wouldn't know whether dangerous toxins were missing. After four months of searching about 335 freezers and refrigerators at the U.S. Army Medical Research Institute of Infectious Diseases in Frederick, Maryland, investigators found 9,220 samples that hadn't been included in a database of about 66,000 items listed as of February, said Col. Mark Kortepeter, the institute's deputy commander. ***** Bird Flu Criminal charges filed in Austria http://birdflu666.wordpress.com/2009/04/13/case-about-bird-flu/ ***** SCHEDULED ISSUES Every Wednesday and Saturday June 2009

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