THE INTERNATIONAL FORECASTER SATURDAY, SEPTEMBER 3, 2011 09/03/11 (1) IF E-MAIL ADDRESSES For subscription and renewal; technical

support, log in problems, etc.: info@intforecaster.com For correspondence to Bob: bob@intforecaster.com CHECK OUT OUR WEBSITE http://theinternationalforecaster.com/ RADIO APPEARANCES: To check out all of our radio appearances click on this link below: http://theinternationalforecaster.com/Radio_Interviews NEXT ISSUES

Every Saturday and Wednesday during the month of September.

Bob Chapman - Financial Survival - August 31, 2011 http://www.youtube.com/watch?v=4My3G4I2Nls&feature=email Bob Chapman - Sovereign Economist - August 31, 2011 http://www.youtube.com/watch?v=bSnrhYLDX7c&feature=email FFw/JB Podcast (9/1/2011): Bob Chapman http://www.youtube.com/watch?v=dvpdksK7qmY&feature=youtu.be http://www.blogtalkradio.com/gonob-radio/2011/09/12/advanced-discussion-1 http://www.blogtalkradio.com/gonob-radio/2011/09/19/advanced-discussion 3 monday set. On Tue, Aug 30, 2011 at 10:17 AM, aaron wilson gonob.com@gmail.com http://www.blogtalkradio.com/gonob-radio/2011/09/19/advanced-discussion Bob Chapman - GREEN T HOUR - September 1, 2011 http://www.youtube.com/watch?v=hMInzjaxB7w&feature=email Bob Chapman - The Financial Survival 02 Sept 2011 http://www.youtube.com/watch?v=qCqgSURkxs8&feature=email
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WORLD MARKETS We find it amusing that Mr. Bernanke in his press conference after the FOMC last week said, US bank exposure to Greece was minimal. We guess he forgot part of that $16.1 trillion and the credit default swaps from NYC banks to the tune of $150 billion. In addition we do not see the US and England escaping the fallout from Europe. From the very beginning 1-1/2 years ago we told Greece to default and that it was inevitable. Of course, the Greek government did not do that, because they wanted to hand their Illuminist friends Greek assets on a silver platter - that is public and private assets. When Greece goes eventually the other five will fall as well. Banks all over Europe are at risk even German savings banks, many US money market and pension funds have as much as 60% of their assets in instruments belonging to the six weaker 1

nations. That represents a far greater risk than what Mr. Bernanke had admitted. The biggest question is what will the German Federal Court say? Investors had best check with their funds or advisor, or banks and S&Ls to determine just how hard they can get hit. If the Court says it is ok, then in Germany it has to be voted on. It probably will be rejected and that creates a new set of problems. Quite frankly we cannot wait for the euros demise. National currencies will return and a great deal of malinvestment will come to an end. It is the best thing for Europe and the world. The mistake of the euro will be over and sovereign nations can return to reality, not some one-world driven philosophy. As we have said previously many European banks will be insolvent under any kind of default. In addition, US money center banks have written between $90 to $150 million in credit default swaps on Irish, Portuguese and Greek banks. If they default that could take several US banks under as well. Well be looking at 2008 all over again. We should have a good idea where this is all headed between the 7th and 15th of September. Even if the purchase of bonds from the weak nations and more bailout money is approved, the underlying problems will still be in place. The entire world is slowing down and those who believe that the US wont be affected do not have a clue as to what is really going on. The ECB, if allowed to move bad assets off bank balance sheets, and to supply further funds, wont solve the problems. They will be in the same situation the Federal Reserve is in moving from QE to QE and never attempting to solve the underlying mess created by these banks. Stalling the crisis is not the answer. There never can be enough economic growth for these six nations to reverse the process already well underway. They are insolvent and they will stay that way. The exercise is to keep the banks from failing and allowing the public to pay for it. In this coming year there will be no GDP growth in Europe, the UK or the US. There will be pockets of pluses, but not enough to be meaningful. All six should be allowed to go under along with the banks. Yes, the public and corporations along with the banks and government would become insolvent, but no matter what happens the system has to be purged. We are already seeing a small example of bank runs in Europe, particularly in Germany where depositors are switching from euros to gold and silver related assets. The run on Greek banks began almost two years ago. That is one of the reasons Eurobank and Alpha Banks merged last week with funding from Qatar. You can all get prepared for more bank runs if circumstances do not work out over the next couple of weeks. Greece is close to such events, which would probably be accompanied by military government, like it experienced in 1974. After having lived in central Europe for many years, four years of which were in Germany, we sense major changes are taking place. The past WWII occupation will come to an end soon, something that should have happened long ago. Germany has been bled long enough and the time for subsidizing the rest of Europe should end. The actions of the electorate in Hamburg in North Rhine Westphalia in March at the ballot box showed us that German attitudes are changing. They no longer believe they should be funding everyone elses losses. If Germany cannot control their own destiny and that of the EU and euro zone, they are doomed to bailout Europe forever. Germany should lead Europe because it has the economic power to do so. What many Europeans do not know and few outsiders know is that the European financial system is corrupt and cannot survive, as we knew it. The question is when will it end, because any resurrection is hopeless? We will have an idea on timing at the end of this coming week as, after the German Federal Court makes its decision on the legality of loans to the ECB for bailouts, and whether the European Central Bank can unilaterally buy bonds as failing nations. In addition, will the German Parliament vote to approve such actions? What the outcome will be no one knows for sure but the system has no

provision for failure. The game that has been played allowing reckless lending and expecting hopeless Germans and others to pay the bills and the unconscionable dumping of CDS and MBS known as toxic waste securities on European banks has come back to haunt the Anglo-American establishment, as well as Europe. As we have said over and over again sovereign debt has to be defaulted upon and the system purged. Nations who lent will take large losses and the banks generally will be wiped out. Once Europe is purged the UK and US will follow. The Illuminists are going to find out they are not as smart as they think they are. Nations and banks are going to fall into insolvency and that means in that process debt has to be cancelled. The current arrangement between the Greek government and other euro zone members has been facilitated. It was done to save the Greek banking system, but does not benefit the Greek people. It just puts more debt on their weary shoulders. Rolling over existing debt and extending maturities does not solve the debt problem, it just throws it into the future. Greece has been the trigger and if the German constitutional court rules against the legality of the EUs bailout machinery then the fallout could be enormous. The word is in the Bundestag, the House of Representative, Mrs. Merkel has lost some 23 votes from Bavarias Social Christian Union (CSU) and if she now wants passage she will have to depend on the Greens, who will do anything for visibility. The CSU has also stated that plans put together by Merkel and Sarkozy two weeks ago involving economic government for euro zone states are unacceptable. It involves allowing nations to leave the euro zone and a pooling of debt. It seems any kind of compromise yet crafted so far is unacceptable. The Cabinet of Germany may have approved new powers for the euro zones bailout fund, but the party and Congress dont look like theyll approve the proposal. If rejected early elections will be held and the CDU and SCU will lose control of the government. If lending was approved all it does is throw debt into the future for the unborn to pay for. Euro zone leaders may have approved an increase in bailout funds to $635 billion, but who will approve a bailout of banks, or a recapitalization? They caused the problem in the first place. These events are what have caused ever more Germans to doubt the validity of the euro. 76% of Germans say they have little or no faith in the euro, up from 71% two months ago. This is what we have been stating for ten years. Long-term 69% to 71% have never wanted the euro. The poll is not at all surprising. The Germany people are saying we have put up with the euro and euro zone for long enough we want out now. If these problems were not enough the European economic growth is faltering and that could prolong the debt crisis. The EFSF and the ECB should not have powers to intervene in the bond market. All that is fascist artificial subsidization that will just end up in another crisis. Just look at what the Presidents Working Group on Financial Markets has done to the US bond market. It has guaranteed 10% losses at this point annually. Who would want to own such bonds? You would have to be an idiot to make such an investment. Dont buyers in the US realize real inflation is 11.2%? That is what will happen in Europe if the ECB and the EFSF are allowed to intervene. Like in America, the friends of the banks will bypass Congress. The court may say Germany was right in engaging in bailouts, but Parliament should have been consulted more. The problem goes well beyond that. The German people want out of the euro and they do not want more bailouts. If the EFSF is ratified you could see demonstrations and rioting throughout Germany. This could push Germany and Europe over the edge. We can remember in our early issues writing about the Maastricht Treaty and how it would never work. The basis was a limit of 3% public debt of GDP, a hurdle totally unachievable for a number of participants. As it has turned out we were right almost all

participants never achieved the guideline. The idea was that German support for the euro would be endless. We believe that open-ended commitment is coming to an end. Subsidies shared by other strong economies, have turned out not to be the answer, because six members abused the trust. One interest rate could never fit all and anyone who has studied economics knows that. Europe got caught up in an impossible dream that simply turned out to be a dream and not reality. When these six economies saw the very low interest rates they not only used them, but they abused them. These low rates transformed the six nations boomed. Then came the disconnects that led to todays problems. Germans have now reached a stage where they now realize the EU and the euro zone system does not work. Yes, Germany gained more in the exchange than others and they believe it is time to call it a day. Germany cannot be faulted for their attitude and conclusions. They have freely subsidized the EU many times, and they were forced by the French, British and US to pay all the costs of German unification and they accepted of Reich marks for Deutsche marks, one for one, when it should have been 20 to 1 and they paid for the cleanup of eastern Germany, which is still ongoing. German leadership acceded to the first Greek bailout 1-1/2 years ago, which we thought was a mistake inasmuch as any clear thinking professional knew that Greece was doomed financially. The crumbling edifice known as the European financial Security Facility, EFSF, a stopgap procedure is now being used again to act as a conduit for a second bailout. The result is that all over Germany the majority of voters do not want any more bailouts. Of course, German leadership thinks otherwise. Like all countries Germanys voters have been sold out to the bankers and one-world government. Will that happen once again? We do not know, but we are going to find out shortly. The guarantees for the bonds to raise bailout funds in exchange for austerity programs are done and will be unsuccessful. How can you grow and bring in added tax revenue to pay interest to the bankers when you are cutting back and laying off. It is the old IMF nostrum used to keep nations in financial captivity since WWII. Such a program prohibits these nations from growing out of their problems. $400 billion has already been wasted and now more good money will be thrown after bad. The need for funds is so great that the EU Council of Ministers had to increase the term of the bonds from 7.5 years to 40 years. In addition interest rates on the bonds were lowered. That is because the borrowers cannot repay the loans. The German $640 billion program does not sit well with the public. When it is found that is not nearly enough money. That is part of the reason German voters want to cut further aid immediately. This is in spite of the fact that Germany controls and runs the fund. This additional German sacrifice has put it in the drivers seat in Europe and enhances it geopolitical potential. It took 66 years, but Germany is leading Europe again. Next week the Germans vote on the proposed new bailout package, that is their representatives do. If passed it will signal Germany will bail out the rest of Europe indefinitely. This in no way will solve any problems. It will be subsides in perpetuity. Germans are very deeply concerned regarding the sellout of their country to fund banker loans and bonds. In fact a vote to continue the largess could easily prompt demonstrations, riots and major civil unrest. The public is ready to act. They refuse to be penalized for the financial profligacy of other nations, including France. If such legislation is passed Angela Merkle will be political history and the CDU, the Christian Democratic Union will be out of power for the next 20 years or more. If Merkel and the other bureaucrats and politicians, who are owned by the bankers, fails in getting it passed the entire western banking system will collapse. Germans know a refusal of the bill will destroy what is left of the financial structure and they obviously are willing to accept that. They rebuilt Germany over the past 66 years and they figure they can do it again. Lack of a bill and bailout of $4 to $6 trillion will purge and cleanse the system. This is what

should have been done to the system three years ago when the credit crisis began. The western world had chances to easily purge the system in 1990 and again in 2000, but the bankers, Wall Street and the City of London were making too much money looting the public. The re-inflation that the US, UK and Europe have been going through wont work, and will end up in financial and economic collapse. This is what gold and silver are telling us. The game is over. It is now only a question of when. The fraud has been exposed, so it is only a question of when the majority in the world figures it out. Most professionals do not even understand that for 66 years every country has been devaluing their currencies, so they can compete with giants of industry and in that process have destroyed their currencies. Now you can better understand why the intelligent are buying gold and silver related asserts. You had best listen or you will lose almost everything you have. U.S. employment growth ground to a halt in August as sagging confidence discouraged already skittish businesses from hiring, piling pressure on the Federal Reserve to provide more stimulus to aid the economy. Nonfarm payrolls were unchanged last month, the Labor Department said on Friday, and employers created a combined 58,000 fewer jobs than had been thought in June and July. The bleak report fueled recession fears. Prices for U.S. stocks and oil tumbled, while U.S. government debt prices rose as traders bet on a further easing of monetary policy. "The economy is slowly grinding to a halt," said Steve Blitz, senior economist at ITG in New York. It was the weakest reading on jobs in nearly a year and far below the 75,000 job gain Wall Street had expected. The unemployment rate, however, held at 9.1 percent as a survey of households found both job growth and an expanding labor force. With the jobless rate stuck above 9 percent and confidence collapsing, President Barack Obama faces pressure to come up with ways to spur job creation. The health of the labor market could determine whether he wins re-election next year. Obama will lay out a new jobs plan in a speech to the nation on Thursday. "This better be one hell of a speech next week," said Sal Arnuk, co-manager of trading at Themis Trading in Chatham, New Jersey. The data, which pushed the Standard & Poor's 500 stock index down by 2 percent in early trade, could strengthen the hand of officials at the U.S. central bank who were ready at their August meeting to do more to help the sputtering economy. The Fed next meets on September 20-21. The Fed cut overnight interest rates to near zero in December 2008 and it has bought $2.3 trillion in securities in two bouts of bond buying, known as quantitative easing, or QE. Many analysts say its arsenal is now largely depleted, although expectations grew on Friday of further action. "The Fed has gained greater political ability to enact a version of QE3 at their meeting in September," said Douglas Borthwick, managing director at Faros Trading in Stamford, Connecticut. The number of planned layoffs at U.S. firms declined 23 percent in August after rising for three straight months, with the government sector again leading the job cuts, a report showed on Wednesday. Employers announced 51,114 planned job cuts, down from 66,414 in July, according to the report from consultants Challenger, Gray & Christmas, Inc. Planned cuts in July had marked a 16-month high.

"In August, the private sector once again took a backseat to the government sector, which saw job cuts surge to the second highest monthly total this year," John Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement. But July's planned job cuts were up 47 percent from August 2010, when they were at 34,768. For 2011 so far, employers have announced 363,334 cuts, somewhat better than the 374,121 cuts announced in the first eight months of 2010. More job cuts are expected at the federal government level with pressure to cut the federal budget, the report said. Cuts in the government sector accounted for 18,426 of the announced layoffs in August, and 105,406 for the year so far. "Meanwhile, the private sector is still being hampered by low consumer and business spending. While we do not see any indication of a sudden resurgence in private-sector job cuts, conditions definitely are not ideal for hiring," said Challenger. The report comes two days ahead of the key U.S. jobs report. It is forecast to show nonfarm payrolls increased by 75,000 in August, according to a Reuters survey, slowing from July's 117,000 rise. The US Postal Service, expecting about $9 billion in losses this year amid slumping mail volume, is still paying thousands of its workers millions of dollars each year to do nothing. Longstanding labor agreements with the largest postal unions prohibit the Postal Service from laying off or reassigning workers because of broken equipment or periods of low mail volume. Instead, some idled employees report for work and are instructed to sit in a break room or cafeteria and do nothing. Standby time totaled 170,666 hours in the first six months of 2011, costing the Postal Service $4.3 million, according to an audit by the Postal Service inspector generals office. Standby time is down considerably this year from 2009, when workers billed 1.2 million such hours at a cost of $30.9 million, according to the report. Members of the American Postal Workers Union and the National Association of Letter Carriers are eligible for standby time payments, but the option was rarely exercised by supervisors until 2009, when mail volume began to plummet. The Postal Service said it would require new monthly monitoring of standby payments by the end of September. Companies in the U.S. added 91,000 workers to payrolls in August, according to a private survey. The increase followed a revised 109,000 gain the prior month, according to data from ADP Employer Services. The median forecast of economists surveyed by Bloomberg News called for an advance of 100,000. The economy needs to generate more jobs on a sustained basis in order to bring down unemployment, which has been at 9 percent or higher in 25 of the past 27 months. A Labor Department report in two days is projected to show businesses added 100,000 jobs in August, down from a 154,000 increase in July, according to the median forecast of economists surveyed by Bloomberg Employers in the U.S. announced more job cuts in August than a year ago, signaling little progress in the labor market more than two years after the recession ended. Planned firings climbed 47 percent from August 2010 to 51,114, according to figures released today by Chicago-based Challenger, Gray & Christmas Inc. The

announcements were led by reductions at government agencies and in the financial industry. Job cuts in federal, state and local governments are another restraint on consumer spending that accounts for about 70 percent of the economy. Job growth this month probably fell shy of the gain needed to reduce the unemployment rate, according to a Bloomberg News survey before a Sept. 2 report. The private sector once again took a backseat to the government sector, which saw job cuts surge to the second- highest monthly total this year, John A. Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement. More workforce reductions at the federal level are undoubtedly coming down the road. Congress and the White House are under immense pressure to cut federal budgets. Compared with July, job-cut announcements decreased 23 percent. Because the figures arent adjusted for seasonal effects, economists prefer to focus on year-over-year changes rather than monthly numbers. Government agencies led the August firings with 18,426 job- cut announcements, followed by 8,094 in finance and 5,901 in the retail industry. Manufacturing in the U.S. unexpectedly expanded in August, allaying concern the worlds largest economy is headed for another recession. The Institute for Supply Managements factory index fell to 50.6 last month from 50.9 in July, the Tempe, Arizona-based group said today. Figures greater than 50 signal expansion. Economists projected the gauge would drop to 48.5, according to the median forecast in a Bloomberg News survey. The Chicago business barometer, which also is called Chicago PMI, slowed in August to a 56.5% reading from 58.8% in July, as managers in the region reported slowing production and new orders and a shrinking in order backlogs. Though the reading was ahead of expectations -- economists polled by MarketWatch had anticipated a 53.0% reading -- the indicator is at a 21-month low. Any reading over 50% indicates expansion, and Chicago PMI has been in expansion territory for 23 straight months. The Chicago PMI is closely followed because it's the last major regional indicator before the national Institute for Supply Management's manufacturing gauge, which is due for release Thursday. Small U.S. businesses in July moderated what had been a blistering pace of borrowing, held back by uncertainty over U.S. economic growth and the debt crisis. The Thomson Reuters/PayNet Small Business Lending Index, which measures the overall volume of financing to U.S. small businesses, gained 13 percent in July from a year earlier, PayNet said on Wednesday. That followed a revised 22 percent gain in June, and a 27 percent gain in May. As measured from a month earlier, the index declined 7 percent, and is now just above the level reached in April. The setback illustrates the "saw-toothed" pattern of the current recovery, said William Phelan, PayNet's president and founder. "It's two steps forward, one step back," Phelan said in an interview. "It's really an indication of the slow growth of activity." Uncertainty about the economic outlook surged as July drew to a close, as U.S. lawmakers appeared at an impasse over a deficit-cutting deal that if not reached could have put the U.S. into its first ever sovereign default. In early August a deal was reached, but worries remain over the nation's will and ability to bring its long-term debt problem under control.

Signs that the U.S. recovery was faltering also grew in July, with manufacturing slowing and job growth anemic. Against that background, the fact that small businesses borrowing continued at the pace it did suggests there is no risk of recession, Phelan said. Borrowing by small businesses is seen as a harbinger for the broader economy because they account for as much as 80 percent of new hiring. The Federal Reserve earlier this month promised to keep rates exceptionally low for another two years to support the ailing recovery. The loans PayNet tracks are typically used to buy or update plants and equipment, and on average are for four-year projects. New orders for U.S. factory goods rose more than expected in July as demand for transportation equipment surged, a government report showed on Wednesday, pointing to some resilience in manufacturing at the start of the third quarter. The Commerce Department said orders for manufactured goods increased 2.4 percent after a revised 0.4 percent fall in June. Economists had forecast orders rising 1.9 percent after a previously reported 0.8 percent fall in June. While the report showed strength in a sector that has carried the economic recovery, regional manufacturing surveys for August have shown a sharp drop in activity, raising the risk the factory sector may have stalled this month. The Institute for Supply Management's index of national manufacturing activity probably fell to 48.5 in August, according to a Reuters survey, from 50.9 in July. A reading below 50 indicates a contraction in manufacturing. The August ISM survey will be published on Thursday. The Commerce Department report showed orders for transportation equipment jumped 14.8 percent in July, the largest increase since January, as demand for motor vehicles advanced 9.8 percent. That was the biggest gain since January 2003 and suggested that motor vehicle shortages caused by supply chain disruptions following the March earthquake in Japan were easing. Civilian aircraft orders soared 43.4 percent, unwinding the prior month's 24 percent drop. Orders excluding transportation rose 0.9 percent in July after gaining 0.4 percent the prior month. Unfilled orders rose 0.8 percent after climbing 0.3 percent in June, suggesting factories will have to ramp-up production. Shipments increased 1.6 percent after rising 0.6 percent the prior month, while inventories increased 0.5 percent. That was up from June's 0.4 percent increase. The department said orders for durable goods, manufactured products expected to last three years or more, rose 4.1 percent instead of the 4.0 percent rise reported last week. Durable goods orders excluding transportation were up 0.8 percent rather than 0.7 percent. Orders for non-defense capital goods excluding aircraft -- seen as a measure of business confidence and spending plans - fell 0.9 percent in July instead of the previously reported 1.5 percent decline. A recent and acrimonious dispute among state officials over a possible legal settlement to address nationwide mortgage abuses is underscoring basic questions about what the effort should accomplish. In settling claims against the largest banks related to robo-signed foreclosure documents and other flawed paperwork, should officials seek to rectify all the wrongs of

the mortgage crisis? How big a settlement is big enough? What approach will net the best deal for struggling homeowners? Last fall, Iowa Attorney General Tom Miller and a handful of counterparts from other states began pursuing a settlement aimed specifically at overhauling the mortgage servicing industry, which has been plagued with problems. That endeavor alone has proven complex and time-consuming. So many parties are involved that 50 people or more have regularly crowded into negotiating sessions held in hotel conference rooms in and around Washington. Some rounds have lasted more than eight hours. The state and federal officials, as well as the bank lawyers and executives who have crammed into the sessions, have a running joke that the negotiations resemble the Paris peace talks on Vietnam. Despite the intricate issues and numerous parties, officials say they are on the brink of securing a settlement that would revamp the way banks service millions of mortgages, lead to more loan modifications for troubled homeowners and extract roughly $20 billion in penalties that quickly could go toward foreclosure prevention efforts. But New York Attorney General Eric Schneiderman has been arguing in favor of investigating an even wider range of mortgage-related practices, leading to comprehensive resolution that places homeowners and large investors in mortgage securities at the same table. He has suggested that officials involved in the 50-state talks have been too hasty in seeking a settlement and are at risk of releasing banks from future claims that go beyond the issues probed so far. Miller, who has been leading the multi-state effort, last week removed Schneiderman from the coalitions executive committee, saying he had actively worked to undermine the efforts to reach a settlement. Some lawmakers and activists have rallied behind Schneiderman, calling his opposition to the yet-unfinished deal heroic. Those involved in the settlement talks are increasingly frustrated at how their efforts have been perceived. Weve been accused of being in bed with the banks. To say that to a group of people who have spent the last seven to 10 years fighting mortgage abuses day in and day out is an insult of the highest order, said Iowa Assistant Attorney General Patrick Madigan, a longtime Miller deputy, who has worked on major settlements with subprime lenders such as Countrywide and Ameriquest. Its just unreal. Another person close to the talks, who like several others spoke on the condition of anonymity to discuss the situation more freely, said many in the group are just exasperated. This smear campaign of lies and innuendo, its uncalled for, its unprecedented, and it threatens substantial consumer harm. Fixed mortgage rates this week continued the downward trend that has been relatively consistent throughout 2011, while mortgage applications also decreased week-over-week, according to the latest report from the Mortgage Bankers Association (MBA). For the week ending August 26, 2011, the MBAs Weekly Mortgage Applications Survey revealed drops in average rates for both 15-year and 30-year fixed mortgages. The average contract interest rate for 30-year fixed-rate mortgages (FRMs) tested yearly lows yet again, sliding to 4.32 percent from 4.39 percent the previous week. Average points on 30-year FRMs increased to 1.30 from 0.88 one week prior. Average interest rates for shorter-term 15-year FRMs also decreased this week, seeing a drop to 3.49 percent from 3.56 percent the week before. Average points for 15-year FRMs remained unchanged week-over-week at 1.00.

Accounting for the increase in average points paid, effective mortgage rates were little changed last week, Mike Fratantoni, MBAs Vice President of Research and Economics, said in a statement. Despite mortgage rates that are again reaching down to historically low levels, mortgage application volume decreased for the week ending August 26, 2011. Both purchase and refinance application activity declined on a weekly basis, the MBA said. The Purchase Index fell 9.6 percent week-over-week, while Refinance Index fell 12.2 percent from the previous week. The total amount of activity associated with mortgage refinancing also decreased to 77.8 percent of total mortgage applications, down from 79.8 percent the previous week. Refinance application volume declined for a second week from recent highs, despite rates staying near a 10-month low, while purchase volume remained near 15year lows, Fratantoni said. Former Galleon Group LLC hedge fund trader Craig Drimal was sentenced to 5 1/2 years in prison after admitting his part in an insider-trading scheme that stretched from technology firms to pharmaceutical companies. Drimal, 55, pleaded guilty in April to six counts of conspiracy and securities fraud, admitting that he and others at Galleon traded on inside information obtained from lawyers working on transactions involving 3Com Corp. and Axcan Pharma Inc. Drimal said the tips came from Arthur Cutillo and Brien Santarlas, lawyers at Boston-based Ropes & Gray LLP. Applications for U.S. unemployment benefits fell last week as the influence of the strike at Verizon Communications Inc. waned. Jobless claims fell by 12,000 to 409,000 in the week ended Aug. 27, Labor Department figures showed today in Washington. Economists surveyed by Bloomberg News projected a drop to 410,000, according to the median forecast. The figure remains higher than it was three weeks earlier, before the labor dispute at Verizon pushed the numbers up. About $11.6 billion in California tax-allocation bonds are at risk of a downgrade, Moodys Investors Service said, due to substantial uncertainty over the future of redevelopment agencies in the most-populous state. Two new laws that divert money from Californias 400 redevelopment agencies and eliminate tracking of revenue used to repay their bonds may diminish the credit quality of the debt, Moodys said yesterday. Governor Jerry Brown signed the laws as part of a deal to balance Californias $86 billion budget for 2011-12 in June. On Aug. 11, the California Supreme Court blocked the Brown administration from diverting $1.7 billion from the agencies, which provide tax incentives for development projects in areas that are deemed blighted. Moodys said the ongoing court challenge is a key contributor to its decision to review the tax-allocation bonds. The fact that a state supreme court ruling could invalidate one, both, or neither of these bills, in whole or in part, creates uncertainty that is negative for the credit quality of all California tax allocation bonds, Moodys said. Moodys noted that the states top court isnt scheduled to rule until Jan. 15 on whether the Brown administration was within its rights to redirect the redevelopment funds to public schools. The firm said it may take longer than the normal 90 days to decide on any ratings changes.

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A California bill dubbed the state's "Dream Act" that would allow illegal immigrants to receive public funds for college education was approved on Wednesday by the state Senate. The legislation would still need to pass the Assembly and be signed by Governor Jerry Brown, a Democrat, to become law. Proponents acknowledge that illegal immigrants who attend college are still not able to find legal employment after graduation, but they say the bill could eventually help spur the federal government to grant those students citizenship. "The Senate made history today by voting to pass ... the final portion of the California Dream Act," Assembly member Gil Cedillo, a Democrat from Los Angeles and the author of the bill, said in a statement. Cedillo said that, if the bill is approved, it would "increase the earning potential of these students, which helps all of us by contributing to our tax base." Brown in July fulfilled a campaign promise by signing into law a related bill to allow illegal immigrants to receive privately funded college scholarships, but not public funds. The latest bill would go into effect in 2013 and could cost the California budget about $40 million a year, but not all of that would go to immigrants because some legal residents from other states could qualify for the funds as well, according to an analysis prepared for a state Senate committee. Ira Mehlman, spokesman for the Federation for American Immigration Reform, said the bill would hurt California. "The state is slashing budgets, they're cutting admissions, they're cutting programs, and here they are using scarce resources to help illegal aliens, when so many other people are feeling the brunt of these budget cuts," Mehlman said. The bill passed the Democratic-controlled state Senate on Wednesday by a vote of 2211, said Conrado Terrazas, spokesman for Cedillo's office. The Assembly is expected to vote this week on the bill. California is one of about a dozen states that allows illegal immigrants to pay instate tuition, based on attendance and graduation from a state high school. Only a handful of states also allow for financial aid for those students. A federal Dream Act that would have created a pathway to citizenship for illegal immigrants who attend college or serve in the military failed in the U.S. Senate last year. Construction spending in the U.S. unexpectedly fell in July by the most in six months as government outlays dropped to the lowest level in more than four years and home-improvement projects slumped. The 1.3 percent decrease was the biggest since January and followed a revised 1.6 percent gain in June that was eight times larger than previously reported, Commerce Department figures showed today in Washington. The median projection in a Bloomberg News survey of economists called for a 0.2 percent increase. Even lower interest rates may not be enough to help sustain a rebound in commercial projects and business investment, one of the few bright spots in the worlds largest economy. Declines in government spending and a stalled housing market also will weigh on the industry. Another blow to QE 3.0 appeared on Thursday. Unit Labor Costs jumped 3.3% in Q2; 2.4% was expected. Who says QE 2.0 wasnt effective? This surge in unit labor costs forced Nonfarm Productivity to -0.7%. Remember when Easy Al used to herald the Great US Productivity Miracle as justification for his deleterious easy credit policy?

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Productivity has declined in back-to-back quarters. It just so happens that this QE 2.0 was the dulcet music playing at the time. Can the Feds army of academics notice or are they too blinded by ideology? If productivity falls in Q3, it will be the first time that productivity has fallen for three consecutive quarters since 1979, which were the peak of the dark days of Jimmy Carter. Securities regulators have taken the unprecedented step of asking highfrequency trading firms to hand over the details of their trading strategies, and in some cases, their secret computer codes. The requests for proprietary code and algorithm parameters by the Financial Industry Regulatory Authority (FINRA)are part of investigations into suspicious market activity"It's not a fishing expedition or educational exercise. It's because there's something that's troubling us in the marketplace," The Securities and Exchange Commission, meanwhile, has also begun making requests for proprietary algorithmic trading data as part of its authority to examine financial firms for compliance with U.S. regulations, according to agency officials and outside lawyers. The requests by SEC examiners are not necessarily related to any suspicions of specific wrong-doing, although the decision to ask for it can be triggered by a tip, complaint or referral. According to interviews with attorneys, traders, industry executives and regulators, the unusual requests for algo code and other computerized trading strategies really ramped up this year and have targeted stock-trading firms such as broker dealers and hedge funds. SHORT NOTES U.S. retailers reported mixed August sales results after Hurricane Irene drove away business at some chains and boosted it at others. The final tally on Thursday, based on reports from 23 retailers, showed that sales at stores open at least a year rose 4.4 percent in August, just shy of the 4.6 percent rise analysts expected. The results raise the possibility that certain back-to-school sales are lost for good. Chains were evenly split between those that beat expectations and those that missed. For a graphic on same-store sales. A key warning signal of global financial stress has shot above the extreme levels seen at the height of the Lehman crisis in 2008. Central banks and official bodies have parked record sums of dollars at the US Federal Reserve for safe-keeping, indicating a clear loss of trust in commercial banksreserve funds from "official foreign accounts" have doubled since the start of the year, with a dramatic surge since the end of July The sole reason that the August ISM was better than expected (50.6 vs. 48.5) is that inventories jumped 3 points! Production tanked 3.9 points! New order increased 0.4 to 49.6. Employment declined to 51.8 from 53.5. Exports declined 3.5 to 50.5. GM August vehicle sales of 18% y/y were 1.0% better than expected. But the stock declined 2.5%. Why? Because GM is again channel-stuffing vehicles on dealers

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Why? Because GM and other automakers are in contract talks with the UAW and they fear a strike. GM typically tries to keep enough cars at dealerships to last about two months. That 60-day supply ensures that shoppers will have wide selections of colors and options. In January and February, Cruze inventories were at about that level, but by March, supplies fell to about 42 days worth of cars. [so GM built up Cruze inventories] HFT traders moan that their secret sauce will be exposed. PUHLEASE! There is nothing arcane about designing a program to front run orders or to engage in quote stuffing. Its big bluff, but it is backed up with millions, or is it billions, of dollars of donations/bribes to Congress Weaker spending by consumers worried about Europes debt crisis and the shutdown of eight nuclear plants were key factors behind Germanys poor growth performance in the second quarter, the state statistics agency said Thursday. Consumers spent 0.7 percent less, the first time the figure dropped since the crisis year 2009. The agency said that was due to fears over the continents debt crisis as well as higher energy prices. Just a little more than a year ago, President Obama was in Fremont, Calif., to tout the jobs created by a solar cell manufacturing company called Solyndra. The federal government guaranteed a $500 million loan for the company that, White House economic adviser Jared Bernstein said, is allowing Solyndra to build a new solar cell factory employing 3,000 construction workers and creating 1,000 permanent jobs." Those jobs weren't so permanent after all. On Wednesday, Solyndra announced it is filing for Chapter 11 bankruptcy protection and laying off all its 1,100 workers Tulsa billionaire George Kaiser, a key Obama backer who raised between $50,000 and $100,000 for the presidents election campaign, is one of Solyndras primary investors. Kaiser himself donated $53,500 to Obamas 2008 election campaign, split between the DSCC and Obama For America. Kaiser also made several visits to the White House and appeared at some White House events next to Obama officials. GOLD, SILVER, PLATINUM AND PALADIUM Wednesday, in spite of being mixed spot gold rose $1.80 to $1,828.50, as December fell $1.50 to $1,828.30. Spot silver rose $0.30 to $41.70, as September rose $0.15 to $41.62. The PPT tried twice to drive prices down, but prices came back strongly. The gold and silver suppression cartel is fighting a rearguard action and losing every step of the way. Colombia added 2.3 tons of gold, bringing its reserves to 9.14 tons. The XAU fell .54 to 217.97 and the HUI fell 2.92 to 598.45. Russia the 8th largest gold holder raised its reserves by 4.42 tons in July to 841.131 tons. The US dollar has fallen 6% this year. Net purchases by central banks in July were 2.24 tons, worth about $132 million. The Dow rose 53 to 11,613, S&P rose 54 and Nasdaq 18 Dow points. The 10year T-note yielded 2.20%. The yen rose .0012 to $76.50; the euro fell .0081 to $1.4351; the pound fell .0079 to $1.6210; the Swiss franc rose .0195 to $.8043 and the Canadian dollar fell .0004 to $1.0195. The USDX rose .22 to 74.17.

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Oil was unchanged at $88.90, gas fell $0.01 to $2.77 and natural gas rose $0.15 to $4.39. Copper rose $0.06 to $4.20, platinum rose $4.20 to $1,848.90 and palladium rose $5.20 to $784.50. The CRB rose 1.62 to 342.57. On Thursday spot gold fell $2.50 to $1,826.00, as December fell $$3.40 to $1,828.30. Spot silver fell $0.22 to $41.48, as December fell $0.13 to $41.63. Both metals were off from 3:00 a.m. onward. Gold open interest fell 6,516 contracts to 502,810, as silver OI fell 132 contracts to 112,243. The XAU rose 1.33 to 219.29 and the HUI rose 5.30 to 603.60. In the second quarter, for a second consecutive quarter, the measure of employee output per hour fell at a 0.3% annual rate, after falling 0.6% in the first quarter. That means American business will do less hiring and pay smaller wages. Cost of exports will rise and a recovery will be harder to achieve. Profitability will also come under pressure. Those making less than $15,000 a year, saw the comfort index fall to minus 90.6, the worst reading for any group since record keeping began in 1990. Confidence of Americans aged 65 or over fell to its second lowest in 18 years. The US Mint sold more gold and silver bullion coins in August than it previously had since January. American Gold Eagle sales rose to 112,000 ounces, up 23.6% from July or from 64,500. The Dow fell 119 to 11,493, S&P fell 130 and the Nasdaq fell 84 Dow points. The 10-year T-note yielded 2.16%. The yen fell .0039 to $.7672; the euro fell .0107 to $1.4255; the pound fell .0059 to $1.6162; the Swiss franc rose .0153 to $79.20 and the Canadian dollar rose .0036 to $1.0225. Oil rose $0.02 to $88.82, gas rose $0.01 to $2.89 and natural gas fell $0.02 to $4.37. Copper fell $0.06 to $4.15, platinum fell $2.20 to $1,854.00 and palladium fell $2.00 to $788.45. The CRB fell 1.92 to 340.65. Early Friday morning gold and silver were very strong. Gold hung in for 3 hours, up $27.50 with silver up $1.04 at 7:00 a.m. EDT, 30 minutes before the Comex opening, the gold suppression cartel had not attacked. There absence caused gold at 7:25 a.m. to jump to up $30.40 and silver rose $1.05. As we predicted a week ago Wednesday that gold would bottom out Thursday and rally $200 by today. Spot gold was up $47.70 to $1,873.70, as December rose $55.70 to $1,884.80. We apologize for being off by $15.20. Spot silver rose $1.54 to $43.02 and December rose $1.78 to $43.31. This was accompanied by a statement that the ECB hasnt ruled out PIIGS gold as collateral for gold backed euro bonds. That was the impetus for the rally. No one considered that the scale of borrowing required is so large that there probably are other ways of trying to deal with the problem rather than gold. Gold could prove to be a drop in the bucket. In this conversation the Central Bank of Ireland said, it will not disclose whether the gold reserves of Ireland, six tons, had been swapped or loaned out, which means they are long gone. What a duplicitous group. August non-farm payrolls were unchanged. Average hourly earnings fell 0.1%, as July was revised from plus 0.5% from 0.4%. Average weekly hours worked was 34.2. Both gold and silver have preformed magically. Next week gold will break out over $1,900 ad silver over $44.00. Gold open interest rose 989 contracts to 503,799, as silver OI rose 508 contracts to 111,736.

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In the COT, Commitment of Traders report, silver commercials decreased their net short position by 1,951 contracts. In gold, commercials reduced net shorts by 10,429 contracts. It was a giant day for gold and silver stocks: AEM rose 2.86%, or by $1.98 to $71.10: GG rose 2.55%, or by $1.36 to $54.71; SSRI rose 7.12%, or by $2.00 to $30.09; MFN rose 3.76%, or by $0.61 to $16.83 and PVG rose 3.11%, or by $0.32 to $10.62 in Toronto and by 2.02% or by $0.21 to $10.79 on the OTC. This stock should be on the NYSE in February. The jobs report was a disaster as the BLS reported the creation of no new jobs in August, far below the expected rise of 65,000. The private sector had 17,000 new jobs, off from 156,000 in July. This was the worst report in a year. The Fed has asked Bank of America for contingency plans in case of continued failure. This means BofA is on the edge of insolvency. The yield on the 10-year T-note fell to 2%, as the economy grinds to a halt. Where are you QE3? The monster worldwide said its employment index rose 147 points in August down from 144 in July. The yield no 10-year TIPS, the Treasury Inflation Protected Securities, fell into negative territory on Friday. The Economic Cycle Research Institute had its weekly leading Index fall to 122.5 from 122.7. The annual growth rate fell to minus 4.3% from minus 2.1%, the lowest level since November 2010. In the case of job creation, such creation would have been minus 87,000 jobs, which were bogusly added by the birth/death ratio. The Dow fell 253 to 11,240, S&P fell 270 and Nasdaq fell 390 Dow points. The yen fell .0007; the euro fell .0073 to $1.4184; the pound fell .0053 to $1.6211; the Swiss franc rose .0070 to $.7866 and the Canadian dollar fell .0084 to $1.0144. The USDX rose .24 to 74.72. Oil fell to $86.75, gas fell $0.02 to $2.84 and natural gas fell $0.05 to $4.19. Copper fell $0.04 to $4.12, platinum rose $33.90 to $1,886.80 and palladium fell $11.40 to $779.00. The CRB fell 2.59 to 338.06. The HUI rose 14.40 to 618.03 and the XAU rose 3.50 to 222.79.
Discount Gold & Silver Trading For the best in pricing and service for gold and silver coins, call Melody at 1-800-375-4188. Be sure to listen to DGSTC live on Short-wave 7.415Mhz M-F 4:00PM ET, and 3.215 MHz MF 11PM ET. Online listen to archives at discountgoldandsilvertrading.net and American Voice Radio Call 1-800-375-4188 or visit the Web site at www.discountgoldandsilvertrading.net or email us at: discountgoldandsilver@yahoo.com

Discount Gold & Silver Trading Co. provides all forms of precious metals including gold, silver platinum and palladium whether you are buying or selling. Our inventory includes but not limited to the American Gold, Silver, Platinum Eagle and numismatic products including rare, investment and circulated coins. Silver dollars, silver bars, rounds are on hand for the silver investor. Foreign gold is also available. Call for information regarding your precious metal gold and silver IRA. 1 800 375 4188 *************** Many of Bobs subscribers love buying 90% Silver at Spotgive us a callqtrs and dimes onlyvery good plus condition. $500 and $1000 face value bags 15

include your next renewal payment for your International Forecaster and free shipping.call Melody at 1 800 375 4188 (Prices are subject to change without prior notice due to silver market availability and conditions) We also have great prices for XF Morgan Silver Dollars dated prior to 1900. Give us a call for all of your gold and silver needs. 1 800 375 4188just ask for Melody. The Blame Game On Friday, August 26th, a global economic forum was held at Jackson Hole, Wyoming. For most of the previous month, the world had watched and waited for Federal Reserve chairman Ben Bernanke to speak at that meeting. Depending on whatever course of action he might reveal, the economy might be saved or wrecked; the stock and commodity markets might go up, or they might go down. In fact, some thought the stock market did go up in the week prior to the meeting in anticipation of what Bernanke might say and do. Others thought the stock market went down in anticipation. It was a volatile week. As predicted, when Bernanke finished speaking on Friday, the stock market did go down . . . and then back up . . . signaling that Bernanke's much-anticipated speech didn't amount to much. According to the Washington Times: "Bernanke proposed no new steps by the Fed to boost the economy. But at a time when Congress has been focused on shrinking long-run budget deficits, he warned lawmakers not to 'disregard the fragility of the current economic recovery.' "Bernanke . . . left open the possibility that the Fed will take further steps to strengthen the economy. He said its September policy meeting will be held over two days, instead of just one, to allow for a 'fuller discussion.' "But analysts said the speech provided no assurances of any new help from the Fed. "'He appears to be saying that the Fed has largely played its part and that the politicians need to step up their game,' said Paul Dales, senior U.S. economist at Capital Economics." Essentially, Bernanke said that, for now, the Fed would do nothing new but would simply leave the situation as it is. That inaction might mean: 1) Our economic situation is sufficiently strong and stable so that no further stimulus from the Fed is required; or, 2) Bernanke is merely waiting until the economic-policy conference scheduled for September 20-21 to announce further (potentially dramatic) steps to strengthen the economy; or, 3) The economy is past saving and Bernanke will not dissipate further Fed resources trying to forestall the inevitable. I don't know that the economy is past saving. But the Washington Times description of Bernankes speech could be read to imply that: 1) The Fed insists it's done everything it can; 2) the Fed can do no more; 3) The Fed (like Pontius Pilate) is therefore washing its hands of responsibility for the economy; and,

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4) The Fed is shifting all responsibility and blame for whatever is coming onto the mob we call "Congress". If it were true that Bernanke is publicly "washing his hands" of responsibility for the economy and instead trying to shift the blame onto Congress, it would be evidence that Bernanke anticipates something significant, unpleasant and inevitable is about to happen to the economyand he may be trying to shield the Fed from being blamed. If the economy has degenerated to a point where politicians and officials are trying to publicly distance themselves from responsibility, and establish that somebody else is responsible, it could indicate that the politicians and bankers are trying to CYA in expectation that a very significant decline may be about to take place. On August 27th, The New York Times published "I.M.F. Chief Chastises Policymakers". According to that article, Christine Lagarde, president of the International Monetary Fund (I.M.F.) and former French minister of finance, also spoke at the Jackson Hole forum on global economics and, "called on governments to do more to address the deteriorating world economy. . . . [saying] economic risks have been aggravated further by a deterioration in confidence and a growing sense that policymakers do not have the conviction, or simply are not willing, to take the decisions that are needed." Thus, Ms. Lagarde (head of another major global bank) emulated Ben Bernanke by also appearing to distance her bank (the I.M.F.) from responsibility for coming economic problems by implicitly blaming governments. Interesting coincidence, no? Both the Federal Reserve and the I.M.F coincidentally seemed to distance themselves from responsibility for the economy and shift the blame onto the shoulders of the worlds governments and politicians. If you like your coincidences in threes, Jean-Claude Trichet, president of the European Central Bank (ECB), also spoke at Jackson Hole and "suggested that Europes problems are fundamentally a question of which governments have taken steps to become competitive and which have not." According to Monsieur Trichet, Greece, Portugal and Ireland, in particular, had progressively lost competitiveness vis--vis their main trading partners in the euro area. Germany is now an example of how big the dividends of reform can be if structural adjustment is made a strategic priority and implemented with sufficient patience. What're the odds, hmm? Spokesmen for what may be the three most important banks in the worldthe Federal Reserve, the International Monetary Fund, and the European Central Bankall "coincidentally" agreed on the same day, at the same economic conference, that the fundamental problem the world's economies was absolutely, positively not with the banks that issue fiat currencies, but was instead caused by the world's governments and irresponsible politicians. It sounds as if all three banks were acting in concert to try to distance themselves and the banking industry from responsibility and liability for our economic problems by shifting responsibility exclusively onto the world's governments. Why would they do that? Im reminded of the old aphorism that victory has a thousand fathers; defeat is an orphan. I.e., when things go well, everyone claims the credit; when things go wrong, everyone denies responsibility. If the U.S. and global economies were truly in a state of recovery or if a recovery were inevitable and imminent, it's hard to imagine why three

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major banks would act in concert to distance themselves from responsibility (and taking credit) for that anticipated victory. If an economic recovery is imminent, who would know better than the worlds major banks? If an economic recovery were imminent, why would the worlds major banks try to shift credit for that upcoming recovery to the governments and politicians? The only way it makes sense to me for the Fed, IMF and ECB to simultaneously distance themselves from responsibility for the economy, is if they agree that a major decline in our economies is inevitable, that that decline will be painful, and that the decline is imminent. Qaddafi Falls to Fiat Currencies Over the past 20 or 30 years, Libya's Colonel Qaddafi has been portrayed as a crossdressing, drug-using, lunatic, terrorist and despot. The mainstream media's portrait of Qaddafi has been so persistently negative for so long, Ive accepted it as more or less true that Qaddafi was pretty much a "villain". But I recently viewed a YouTube video that says the truth about Qaddafi is very different from what we've been led to believe. In that video, I saw Qaddafi riding in the open through Tripoli, seemingly vulnerable to assassination, and instead receiving widespread cheers and applause from his people. The video shows Tripoli as a fairly modern and prosperous city. We read allegations in the video that, if true, indicate that Qaddafi was truly dedicated to the welfare of the Libyan people. For example, according to the video, in A.D. 1951, Libya was judged the poorest country in the world. Qaddafi seized power in A.D. 1969 and built Libya up to highest standard of living in Africaeven ahead of Russia, Brazil and Saudi Arabia. Under Qaddafi, homes are considered a human right; newly married couples receive $50,000 towards the purchase of their homes; electricity is free to all. Before Qaddifi, less that 1/5th of Libyans were literate, now education is free and the literacy rate is 83%. If we believe the video, Qaddafi is a real hero. So, which is he? Hero or villain? Probably somewhere in between. Qaddafi is almost certainly better than he's been portrayed by western mainstream media. He's probably not as good as he's being portrayed in the YouTube video. I.e., while Qaddafi may be the "hero of Tripoli," the current revolution against him is manned by enough Libyans living outside of Tripoli. This suggests that while the people of Tripoli were enriched by Qaddafi and therefore loved him, some significant number of Libyans outside of Tripoli felt oppressed or exploited and therefore revolted. If Qaddafi was hero to some Libyans, he was a villain to others. Why has NATO entered into the Libyan revolution? For humanitarian reasons? To stop Qaddafi from bombing Libyan rebels? Or to stop the spread of gold-backed, "African dinar" that Qaddafi had sought to create as a pan-African currency? Colonel Qaddafi had the audacity to try to create a pan-African currency ("African dinar") that would be 100% backed by gold. Qaddafi correctly reasoned that if the continent of Africa adopted a gold-backed currency, the world would rush to invest in Africa and Africa would begin to flourish. The gold-based African dinar thus threatened the world's fiat currency system, and like the Patriots of the 1990s and Saddam Hussein of A.D. 2000-2003, the New World Order and the fiat monetary system (acting under the guise of NATO) jumped on Qaddafi's chest with both feet. I'd bet a lot of cash that, one way or another, Colonel Qaddafi will soon pay with his life for having threatened the fiat monetary system.

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If you're a small operator (like the "patriots" of the 1990s) and you screw with the fiat monetary system, you go to jail for a long time. If you're a big operator (like Saddam Hussein and Colonel Qaddafi) and you screw with the fiat monetary system, you go to your grave. If that premise is true, Ron Paul (who's trying to audit and/or even eliminate the Federal Reserve) may be in considerable danger. The fiat monetary system is the New World Order's heart of darkness. If you want to stop the New World Order, stop the fiat monetary system. The New World Order regards gold the way vampires regard garlic. If youd like to strike a blow for liberty (without going to jail), get some gold.
Discount Gold & Silver Trading Co. provides all forms of precious metals including gold, silver platinum and palladium whether you are buying or selling. Our inventory includes but not limited to the American Gold, Silver, Platinum Eagle and numismatic products including rare, investment and circulated coins. Silver dollars, silver bars, rounds are on hand for the silver investor. Foreign gold is also available. Call for information regarding your precious metal gold and silver IRA. 1 800 375 4188

Dominant Social Theme: You wouldn't ordinarily think of the US federal government as part of your family, but ... hey ... why not? Analysis: What inflates your money and taxes you at perhaps 50 percent of your income, all in? What's built are secret prison camps around the country that the bureaucrats involved refuse to explain or enumerate? What's been involved in up to five undeclared wars in the Middle East with more on the way? What's used depleted uranium as a weapon, thus poisoning mothers and their babies throughout Afghanistan and Iraq and other countries as well? What's the author of so many regulations that small, domestic businesses are literally choking to death on them? What's US$14 trillion in debt with a notional (national) debt that may be as high as US$200 trillion? What's run by a president who has released none NONE of his records dating back to kindergarten and who may have released a forged birth certificate recently? What country (among others) is run secretly behind the scenes by a group of unaccountable, impossibly wealthy banking families? What country is responsible for enforcing the rise of the nascent world government and its appendages the UN, IMF, World Bank, BIS, WHO and the ICC (World Court)? What country ... well, you get the picture. It's your friendly "federal family"! COMMODITIES DOE crude oil inventories rose 5.28 m/b, distillates rose 363,000 and gasoline fell 2.8 m/b. EUROPE As far as scandals go, it's the gift that keeps giving and now it's starting to give French President Nicolas Sarkozy the same pain in the derrire that it previously inflicted on his fellow conservatives.

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It is the now notorious affaire Bettencourt a tangle of allegations involving manipulation, influence peddling, and financial improprieties that began proliferating last year from a row within the family of billionaire L'Oral heiress Liliane Bettencourt. Indications of misconduct and troubling conflicts of interest that exploded from that private-clash-gone-public saga have shaken France' legal and political system to their foundations, and cost numerous people involved their jobs including a key member of Sarkozy's cabinet. Now that recently quelled storm looks set to begin raging anew with the publication of a new book containing accounts of Sarkozy having personally pocketed the same cash campaign contributions from Bettencourt that several other conservatives also allegedly illegally received. The massive French media coverage the book and it claim provoked an immediate and categorical denial from the Elyse. Meaning, the next round of the Bettencourt Bust-Up can now begin. The new claims come in a new book by two Le Monde journalists profiling an array of people they say were targeted by politically motivated attack campaigns mounted by the Elyse. Such efforts, the book says, were undertaken to undermine or discredit figures considered hostile or threatening to Sarkozy's political fortunes. Among those individuals featured is Isabelle Prvost-Desprez, an investigating magistrate who led the inquiry into the Bettencourt case as it blossomed from a motherdaughter battle over handling of the family fortune to a scandal ensnaring public figures and politicians with claims of influence peddling and financial wrong-doing. Excerpts of the book in the French press Wednesday quote Prvost-Desprez describing how both real and anticipated intimidation issuing from the summit of French political power led many Bettencourt employees who testified in her investigation to hedge what they said against the pay-back they feared would result from their statements. By way of example, Prvost-Desprez recounted how a Bettencourt family nurse informally revealed something she felt she simply couldn't state for the record: that prior to his 2007 presidential election, Sarkozy was one of several officials from the conservative Union for a Popular Majority party (UMP) who personally accepted cash campaign contributions from the Bettencourts. Though such payments wouldn't necessarily be illegal if limited in amount and duly accounted for, earlier testimony and evidence in the case indicates cash campaign donations other UMP figures received during visits to the Bettencourt home fell well beyond the maximum $200 in cash and $10,000 per-donor limit imposed by law. The Elyse responded to the accusations attributed to Prvost-Desprez as unfounded, lying, and scandalous. Government member and spokesperson Valrie Pcresse also rejected the claim, telling France 2 television Wednesday morning that when people justice officials like Prvost-Desprez above all have accusations to make, they should do so before legal authorities. They should indeed but this is no normal tale of calm, independent legal inquiry into claims of run-of-the-mill wrongdoing. In fact, the Bettencourt case is such a tangle of big money, political power, and alleged conniving, manipulation, and tampering with the investigation into it that it's probably best for uninitiated readers to bone up on it with a nice summary the New York Times ran on the scandal last year. Once they have, they'll see how revelations into what began as a family rift gradually reached snaked out to trip the elder Bettencourt's financial advisors, and linked them to Sarkozy's former Budget Minister Eric Woerth. Those ties then not only generated suspicions of conflict of interest by Woerth on several fronts, but also produced allegations he accepted illegal donations from the Bettencourts in his role as UMP's treasurer a party function he continued assuming after Sarkozy's 2007 presidential election, and Woerth's appointment to

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government. Woerth has continually denied any wrong-doing, and was especially adamant in that when it was learned Bettencourt's financial advisers who had hired Woerth's wife after the 2007 election had convinced Bettencourt to park millions of her money in undisclosed Swiss accounts to avoid paying taxes on them despite Woerth's much-heralded drive against tax cheats. For over six months as the uproar raged, Sarkozy stood by the beleaguered Woerth first by seeking to stem the rising stench of scandal indirectly then by counterpunching to suggest it was all a political slur campaign. Finally, Sarkozy sought to create distance between the drama and his cabinet by ditching Woerth during a reshuffle this year. But the calming of the Bettencourt scandal that followed arose primarily from the mother and daughter originally central to it reconciling and resolving their dispute and thereby robbing the story the main peg that had kept it fixed in the headlines. Now, thanks to the new book and Prvost-Desprez's claims it's back for Sarkozy and the ruling UMP, much in the way Jack Torrance comes back via the bathroom door in The Shining. So does this mean serious trouble for Sarkozy just eight months before his expected re-election bid and already burdened with one of the lowest popularity scores in French presidential history? Sorta. On the one hand, the once-removed allegation recounted in the book by PrvostDesprez was never given as official testimony, meaning it isn't in the records and carries no legal significance. Meanwhile, Prvost-Desprez herself has been a controversial figure in a case that was taken out of her hands and moved to a trio of investigating magistrates in far-off Bordeaux. True, that move was made in part because PrvostDesprez entered into direct and open conflict with her hierarchy amid accusations she had over-stepped her authority, presumably driven by political interests. Meanwhile, as noted above, even if the nurse described as having seen Sarkozy accept cash donations steps up and enters that testimony into the official case, her allegation must not only be proven, but also found to have violated campaign finance laws. Barring evidence that has failed to surface for over a year now, that's not going to happen. On the other hand, however, the powerful prosecutor Prvost-Desprez so publicly defied is well-known as a Sarkozy intimate who was also directly consulted by Bettencourt at the urging of Elyse officials in her efforts to get the initial case her daughter had filed derailed. Indeed, signs the prosecutor himself had exceeded his purview for what could be interpreted as political interests led to his superiors to entrust he withdrew from Prvost-Desprez to the three judges well beyond his jurisdiction in Bordeaux. Though their inquiry almost certainly won't be wound up (much less taken to court) before next spring's presidential contest, the return of the l'affaire Bettencourt and all the swirling suspicions around it can't be too pleasing to the Elyse. The main reason? Many jurors in France's court of public opinion already view Sarkozy and French conservatives in much the way some American voters regard Republicans: as the loyal friends of rich and powerful backers they often pamper at the expense of the less affluent majority who not only pay higher tax rates than the wealthy, but have also assumed the brunt of austerity cuts. For that reason, the potential mental image in voters' minds of Sarkozy pocketing wads of cash from a political patron who happens to be France's richest billionaire is one the Elyse could happily live without. That's especially so for a president who has yet to overcome his own notorious blingbling reputation and who still sports a glowing tan from a summer vacation spent on his billionaire wife's family estate. None of that, of course, is deadly to Sarkozy's re-election hopes. Similarly, the fact that the two authors of the new book have also repeatedly broken new details in the Bettencourt case won't make the allegation they reveal any more legally threatening to

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Sarkozy. But it all does offer another example how France's favorite scandal has not yet exhausted its formidable gift giving capacity and how any new demonstrations of that are likely to be more cadeaux empoisonns for the Elyse. Europes manufacturing industry contracted more than initially estimated in August, adding to signs that the euro regions recovery is faltering. A manufacturing gauge based on a survey of purchasing managers in the 17-nation euro region fell to 49 from 50.4 in July, London-based Markit Economics said today. Thats the weakest in two years and below an initial estimate of 49.7 published on Aug. 23. A reading below 50 indicates contraction. Europes economy is cooling as governments toughen spending cuts to narrow their budget deficits, sapping consumers willingness to spend. European economic confidence slumped the most in almost three years in August. In China, manufacturing growth remained near a 29-month low last month and manufacturing in South Korea and Taiwan contracted, highlighting signs of a worsening global slowdown. The euro zone is clearly struggling in the face of tighter fiscal policy across the region, said Howard Archer, chief economist at IHS Global Insight in London. Slower global growth has clearly hit foreign demand for goods and services pretty hard. Inflation in the 17 euro countries remained steady at 2.5 percent in August, adding to expectations the European Central Bank will hold off from raising interest rates and may even consider cutting them as economic growth slows. Wednesday's figure is still above the ECB's target of just below 2 percent, but underlines that prices in the eurozone are not rising as quickly as earlier in the year. In June, inflation was 2.7 percent. Although European Union statistics agency Eurostat did not release a breakdown of the inflation data, the number adds to expectations that the ECB may not raise its key interest rate beyond the current 1.5 percent any time soon. ECB President Jean-Claude Trichet said Monday that the central bank was reassessing inflation risks for the euro area, after insisting in previous months that there were strong upward pressures on prices. Since then, however, the economic recovery in the eurozone has slowed amid concerns about the currency union's debt troubles. Even the region's economic powerhouse Germany expanded a meager 0.1 percent during the second quarter, signaling that the dire economic conditions in countries like Greece, Ireland and Portugal are starting to affect the continent's core. "These data should help to convince the ECB that its earlier fears of a sharp rise in inflation were unwarranted, perhaps opening the door to interest rate cuts in the not too distant future," Jennifer McKeown, senior European economist at Capital Economics, wrote in a note. Underlining the weakness of Europe's recovery were unemployment statistics showing hardly any improvement from a year earlier. Eurostat said that eurozone unemployment remained high at 10 percent in July, after revising June's figure up from 9.9 percent. That's not far from the 10.2 percent unemployment in July last year. Unemployment was highest in Spain, where 21.1 percent of people were out of a job. It was lowest in Austria, at just 3.7 percent, and the Netherlands, where it stood at 4.3 percent. In the 27-country EU, which also includes non-euro countries, unemployment remained at 9.5 percent, after the June rate was revised up from 9.4 percent.

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Greek debt is out of control says independent parliamentary committee of experts Reuters Greece's debt has run out of control and government policies are failing to restore finances according to an independent parliamentary committee of experts. The committee said "It is clear that the country's problem is not just the size of the public debt but the inability to consolidate the current fiscal management. Despite gigantic effort for fiscal adjustment, no primary surplus has been achieved, on the contrary the primary deficit widens". As we mentioned in Thursdays missive, the Greece and Italy bailouts are teetering because the austerity measures are crushing the economies. Citizens are irate that banksters are making out on their backs. The dispute is complicating negotiations before release of a further aid tranche under a 110 billion euro bailout agreed last year to stave off the debt-choked country's bankruptcy EU/IMF inspectors visiting Athens feel Greece is not pursuing reforms vigorously enough, while Greek officials say the main reason for the overshooting is a worse-thanexpected, austerity-induced recession, sources said The official, speaking on condition of anonymity, said the gap had three sources - the economy doing worse than expected, new measures not implemented as agreed and older measures yielding less than expected, in particular taxesAdding to the Greek government's embarrassment, the chief of an independent parliamentary budget committee resigned late on Thursday after the country's finance minister attacked the group for saying Greek debt was unsustainable Tax evasion in Greece threatened to take organized form on Thursday when caf and restaurant owners refused to pay a 10-point VAT rise, as a deep recession clashes with the governments increasingly desperate search for revenue. The steep rise in value added tax on the hospitality sector from 13 per cent to 23 per cent is part of a package of fiscal measures agreed in return for the countrys second financial rescue by European Union partners. Its that this first major bond restructuring in Europes long-festering debt crisis is shaping up as a much better deal for the banks than for the Greeks it is supposed to be helping. The question remains, however, whether the banks that financed the countrys debt by buying its bonds would get off too easy and whether the Greek government should have pushed for a larger write-down to ease its debt load. German Chancellor Angela Merkel's cabinet approved new powers for the euro zone's bailout fund on Wednesday, kicking off a month-long battle to convince sceptical lawmakers in her conservative camp to back measures to stem the bloc's debt crisis. Concerned that Germany is ceding too much power to Brussels, some members of Merkel's centre-right coalition have threatened to vote against granting more powers to the fund the European Financial Stability Facility (EFSF) when the Bundestag lower house of parliament meets on Sept. 29. Should enough conservatives rebel and Merkel is forced to rely on opposition parties to pass the legislation, she could face pressure to dissolve parliament and call early elections, although the chances of that seem slim.

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In a sign of how important the current debate in Germany is for investors, news that the cabinet had approved a stronger EFSF pushed the euro up to session highs against the dollar. There are fears that if Berlin insists on parliament having a greater say in the EFSF, other countries will too, limiting the fund's ability to act swiftly to save stricken states. Senior German conservatives said on Wednesday that they had come up with a formula for the Bundestag to be consulted on use of the EFSF, which is set to receive new powers to intervene in the bond market and provide precautionary credit lines to troubled member states. Norbert Barthle, chief budget expert for Merkel's conservative bloc, said this should mollify rebels who want more say for legislators but would not increase the risk of euro zone contagion by bogging down the EFSF in parliamentary procedure. "I expect this proposal ... will be able to convince those critics who were worried parliament did not have a sufficient say in the funds," Barthle told Reuters, adding that the EFSF should still be able to react quickly in a crisis. According to his proposal, the Bundestag budget committee would be informed of minor EFSF decisions but there would be a fuller parliamentary consultation in other cases. Euro zone leaders last month agreed to boost the size of the EFSF to 440 billion euros and give it extra powers, including a potential role in helping to recapitalise banks. Merkel's conservative coalition has 330 seats in the 620-seat Bundestag. If 20 or more of her allies dissent, she may be forced to rely on leftist opposition parties -- the Social Democrats (SPD) and Greens -- to pass the measures. The coalition parties themselves will write up the draft and present it to parliament in order to speed up the ratification procedure and ensure the law is passed by the end of September. (Reporting By Sarah Marsh; Writing by Stephen Brown and Noah Barkin; Editing by John Stonestreet) German unemployment fell in August for a 26th straight month as hiring in Europes biggest economy held up in the face of a global market rout and the euro-areas debt crisis. The number of people out of work fell a seasonally adjusted 8,000 to 2.95 million, the Nuremberg-based Federal Labor Agency said today. Economists forecast a drop of 10,000, according to the median of 31 estimates in a Bloomberg News survey. The jobless rate held at 7 percent, the lowest since records for a reunified Germany began in 1991. The decline in joblessness defies a plunge in Germanys benchmark DAX Index (DAX) of about 20 percent this month on fears that another global slump will sap demand for the countrys exports, the main driver of economic expansion. The economy barely grew in the second quarter after expanding 1.3 percent in the first, the Federal Statistics Office said on Aug. 16. The German labor market remains strong but it would be nave to think that it could be totally immune to the debt crisis, Carsten Brzeski, an economist at ING Group in Brussels, said in a note to investors. The DAX rose 1.4 percent to 5,725.43 at 10 a.m. in Berlin. The euro reversed a 0.2 percent decline against the dollar to trade little changed at $1.4459 The German parliament is calling for increased authority in euro-zone bailout packages established by the EFSF backstop fund. But that could ultimately slow things down to a dangerous degree, economists warn. German commentators on Thursday make a plea for democracy.

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The Swiss economy expanded in the second quarter at the weakest pace since emerging from a 2009 slump as the francs appreciation sparked a drop in exports and companies cut spending. Gross domestic product rose 0.4 percent from the first quarter, when it increased 0.6 percent, the State Secretariat for Economic Affairs in Bern said today. Thats in line with the median forecast of 18 economists in a Bloomberg News survey and the worst performance since the economy returned to growth in the third quarter of 2009. Foreign sales slumped 1.3 percent from the first quarter, when they rose 3.4 percent, and investment dropped 2 percent, down from a 1.1 percent gain. Switzerlands economy is cooling as the francs 8 percent ascent against the euro this year undermines exports just as global growth weakens. Manufacturing growth slowed last month, the KOF economic barometer fell and the central bank said that the economic outlook deteriorated substantially. Commenting on the letter from International Accounting Standards Board (IASB) head Hans Hoogervorst to the European Securities and Market Authority, saying that "certain European banks have not properly capitalized the Greek risk," the major French economic weekly Challenges compares what is happening now with the first step towards passing the original Glass-Steagall Act of 1933. The former Dutch Finance Minister, Hoogervorst admits he is "no technical expert," but replies to the bankers' howls regarding his expertise, "Sometimes you need an 'outsider' who asks the basic questions." Is history repeating itself? asks Challenges: "This reminds us how the famous Glass-Steagall Act came about in the United States ... in 1933. It was Ferdinand Pecora, a young New York prosecutor, an Italian migr, with no knowledge of financial practices, who investigated the case of the banks, by putting it on a moral plane. At that time, American bankers blatantly had the upper hand in corrupting officials, some of them were financing the parties of Hitler and Mussolini, and all succeeded in tax evasion. "By convincing the public that a profound reform of the banking system was required, the prosecutor permitted the vote for the Glass-Steagall Act. Pecora and Hoogervorst, the same battle? One thing is sure: we should be suspicious of the experts, recalling that it was an amateur who built Noah's Arc and an expert who laid the plans for the Titanic..." ENGLAND U.K. house prices fell the most in 10 months in August as a slowing economic recovery threatens to undermine demand, Nationwide Building Society said. The average cost of a home dropped 0.6 percent to 165,914 pounds ($269,800) from July, the Swindon, England-based customer-owned lender said in an e-mailed report today. From a year earlier, values were down 0.4 percent. While a shortage in the supply of homes for sale and record-low Bank of England interest rates have supported prices, the housing market is struggling to gain momentum as banks restrict lending and Britons spending power is eroded by inflation. The British Chambers of Commerce cut its economic growth forecast today as the U.S. recovery slows, Europes debt crisis escalates and Britains government implements the biggest fiscal squeeze since World War II.

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U.K. manufacturing shrank the most in more than two years in August as demand from domestic and overseas customers weakened. A gauge by Markit Economics and the Chartered Institute of Purchasing and Supply fell to 49, the lowest in 26 months, from 49.4 in July, according to an e-mailed report in London today. That matched the median forecast of 27 economists in a Bloomberg News survey. A level below 50 indicates contraction. New orders fell the most in almost 2 1/2 years and employment declined for the first time in 17 months. Manufacturers said the drop in demand was due to weaker domestic and export sales and rising global economic uncertainty. Factory activity also shrank in the euro area, Russia and Taiwan last month, according to separate reports today, while manufacturing growth slowed in Switzerland. MEXICO Mexico central bank goes for gold. At the start of the year, Mexico's central bank held less than seven metric tons of gold in its vaults. Since then, the bank has increased its stockpile by 93.3 tons as it seeks to protect its reserves from fluctuations in the US dollar. The extra gold is currently valued at 4.6 billion dollars. Mexico's total foreign currency reserves hit new highs in May of over 125 billion dollars. The IMF recently praised Mexico's monetary and fiscal policies, stating that Mexico's economy is now the best positioned in all of Latin America. The IMF forecasts that Mexico's GDP will grow 4.5% this year." "Favorable bakance of trade with US Mexico is the third largest trading partner of the US after Canada and China. US Department of Trade figures show that Mexico's exports to the US rose 18.2% to 62.1 billion dollars in the first quarter of the year compared to the same period in 2010. The sharp rise in value of exports was due to higher oil prices, and was boosted by greater exports of manufactured goods. During the same period, Mexico imported 45.8 billion dollars worth of goods form the US, pushing Mexico's surplus for US trade to 16.3 bilion dollars, one of the highest quarterly figures on record. Mexico is the second largest supplier of oil to the US after Canada, ahead of both Saudi Arabia and Venezuela." AUSTRALIA AND NEW ZEALAND New home sales continue to slide sharply, prompting calls for the Government to boost the struggling industry with a stimulus package. Following an 8.7 per cent decline in June, new home sales slumped by 8 per cent in July, according to the latest figures from the Housing Industry Association (HIA). Detached house sales fell nine per cent during the month, while sales of multi-units increased by one per cent. The result has renewed calls from the HIA for the Government to intervene with a stimulus, as building and construction companies continue to collapse with consumers opting to renovate rather than build. "It's a weak result. But it's unfortunately a weak result that is consistent with a range of indicators regarding the climate of the residential building sector," HIA chief economist Dr Harley Dale told

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"It would be fair to say that given recent reports in the media regarding job losses, that probably instills a greater sense of urgency into the need to provide some kind of stimulus to the sector." However, he said the weak environment was good news for new home buyers, making it a good time to build or buy. "A competitive building market, less pressure on skilled trades, and steady interest rates combine to mean that if you're in a financially sound position to do so, now is a particularly good time to build new home," Dr Dale said. The report found detached new house sales fell 11.2 per cent in NSW, 7.8 per cent in Victoria, 8.5 per cent in Queensland, 1.5 per cent in South Australia and 12.7 per cent in Western Australia. AUSSIE PM'S ELECTION CAMPAIGN FUNDED BY UNION FEES AND FORMER UNION BOSS USED SUBSCRIPTIONS TO PURCHASE PROSTITUTES AND A SEAT IN FEDEAL PARLIAMENT: Julia Gillard's re-election campaign last year was fought from the Sydney premises of the union at the centre of the Craig Thomson scandal and the union failed to properly declare almost $80,000 in rent concessions over the deal. It has also emerged that the Health Services Union (HSU) paid more than $1.5 million to the ALP while Mr Thomson was its national secretary, despite the union being in deep financial trouble. The federal Labor Party leased office space on Level 4, 370 Pitt Street in central Sydney from the NSW branch of the HSU, known as HSUEast, as the headquarters of its 2010 federal campaign. The party's federal secretariat continues to lease space in the building, which is used by federal party boss George Wright when he works from Sydney. However, HSUEast has failed in its legal obligation to declare as a political donation the discount it offers the party for the offices - a total of $79,000 in rent concessions. The union says it is now "reviewing" all its political donations disclosures for accuracy. The deal was disclosed by Labor and there is no suggestion the party knew of the union's oversight. National HSU president Michael Williamson - a close friend and mentor of Mr Thomson, who is now a federal Labor MP - said last night the omission was "a genuine oversight and the return is being amended now that it has been brought to our attention". "The Australian Electoral Commission is aware of this in-kind donation as it has already been declared by the national secretariat of the ALP," he said. "As a precaution, HSUEast is reviewing all other AEC returns to ensure there are no further omissions." The Labor Party's financial disclosure for the 2009-10 financial year includes an "in-kind" donation of $79,070 from the HSU, believed to cover the discounted lease on 370 Pitt Street. Mr. Wright said last night: "I can confirm that the national secretariat of the ALP did run the 2010 federal election campaign from office space in Sydney which is leased from the HSU. "Rent charged for the use of these premises does involve an in-kind donation to the ALP from the HSU," he said. "This in-kind donation has and will continue to be fully disclosed by the ALP in its publicly available returns to the AEC." The fact the HSU continues to be Labor's landlord in its Sydney premises shows some of the intricate connections that have made it increasingly difficult for Ms Gillard to distance herself from the chaos within the HSU and former HSU chief and now Labour MP Craig Thompson's HSU credit card purchase of prostitutes.

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Mr. Williamson is a former president of the Labor Party. The NSW branch of the union has an impressive property portfolio worth more than $22m, according to its financial statements for the 2009-10 financial year. Mr. Thomson is accused of having misused union funds while he was at the HSU, with allegations that his credit card was used to pay for prostitute services and unexplained cash withdrawals of more than $100,000. Although Mr. Thomson has strenuously denied the claims, it is seemingly obvious that PM Julia Gillard's labour party willingly accepted large donations from the HSU and in return facilitated Mr Thompson's entry into federal parliament in the 2010 election. Critics say Mr Thompson not only immorally purchased prostitutes with a union credit card but also his seat in federal parliament. An investigation by NSW police and Fair Work Australia into allegations Mr Thomson misused his union credit card - including to pay for prostitutes - has raised wider concerns about the union's finances and its donations to the Labor Party. The $1.5m paid by the HSU's Victorian and NSW offices to the ALP branches in those states between 2002 and 2007 while Mr. Thomson was national secretary were made even though the union's national office was losing money and was struggling to pay its debts. The union's strong financial support to the ALP between 2002 and 2007 was followed by Mr. Thomson winning ALP preselection in 2007 for the federal seat of Dobell, north of Sydney. The ALP recently gave Mr Thomson $90,000 to pay his legal fees for a defamation action against the Fairfax Media group. An examination of the funding disclosure statements shows that between 2002 and 2007, the HSU branches in NSW and Victoria paid the ALP in those states a combined total of between $233,000 and $304,000 in each year. These took the form of affiliation fees, donations and other unspecified payments. Union sources said last night other parts of the HSU organisation, rather than Mr Thomson, would have probably made the final decisions about the size of the payments to the ALP. The ALP records, held by the Australian Electoral Commission, show that between 2002 and 2007 the HSU in NSW paid a $10,500 monthly "subscription" to the ALP's NSW branch, but that the union went further by paying one-off donations each year of up to $75,000. The records show that the HSU, which has 70,000 members, paid more than $1m to the NSW branch of the ALP between 2002 and 2007. Similarly, the union in Victoria was an active contributor to the Victorian branch of the ALP during that same period, paying more than $450,000 to its coffers between 2002 and 2007. These generous payments were made at a time when the union's national office was in deep financial trouble, with its 2007 financial accounts showing a "deficiency of members funds" of $174,076 that year and $135,519 in 2006. The ACTU was reported to have intervened during Mr. Thomson's time as HSU national secretary to recover almost $400,000 owed by the HSU to the peak union body, although much of this debt was accrued before Mr. Thomson became national secretary in 2002. The HSU has since repaid the debt. Incomplete financial records during Mr Thomson's tenure as national secretary have made it too difficult for authorities to gain a precise picture of the extent of the HSU's financial problems.

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The Australian High Court this week rejected Labor's plan to send 800 boat people to Malaysia for processing in exchange for 4,000 proven refugees. The Labor party's right faction is pushing for current defense minister Stephen Smith and Assistant Treasurer Bill Shorten to replace current PM Julia Gillard and deputy Wayne Swan amid the government's lowest ever approval ratings. Private investors invested $35 billion in the Australian economy between April and June this year (up 4.9% or 23.3% yoy) while a further $150 billion is scheduled for investment before June 2012. Most of the funds will find there way to the mining sector. Retail spending rose 0.5% in July to $20.6 billion. Building products maker CSR will axe 115 workers making a total of 9,000 jobs lost in the last six weeks from companies including Qantas, Bluescope Steel, Westpac and number of investment banks. The RBA remains hopeful of another interest rate rise from 4.75 to 5% before year end raising fears a consequential rise in the AUDUSD will further styme exports resulting in further job losses, in particular manufacturing. Unions are calling for a senate enquiry into the off-shoring of manufacturing. Defense minister Stephen Smith had indicated that there will be increase on US Navy ships and aircraft in Australia as well as more joint military bases. Recent confrontation between Chinese and India warships of the coast of Vietnam confirms India gas become a new strategic player in the South China Sea. The Indian naval vessel INS Airavat was confronted by a Chinese ship asking to explain its presence. HEALTH HERBALIST WENDY WILSON HOW TO SPEED RECOVERY FROM ILL HEALTH What qualifies as ill health? It is a term that is used broadly to include injury, disabilities, infections, symptoms and syndromes. Generally poor health (or chronic symptoms of disease) is ill health. A condition which produces pain, dysfunction or distresses us further also describes ill health. We can get caught up in all the details of why we feel lousy but how do we get over feeling lousy and fast? There is a way. SICKNESS BEHAVIOR Our evolutionary scientific medicine says that most illness is not directly caused by an infection or body dysfunction but is instead a response created by the body. An example is a fever, which according to evolutionary medicine is the bodys response to bacteria or viruses but that these agents are not directly the cause for illness. Evolutionary medicine calls this response sickness behavior. TAKE CARE OF YOUR GLANDS We all have glands which help us survive illness. The adrenal glands specifically are very important in helping us recover from disease and how fast we recover can depend on the health of our adrenal system. What exactly does your adrenal gland do? A healthy adrenal gland secretes hormones to protect you from becoming obese, to help cure you from disease, protect you from premature aging and help protect you from being a victim of a crime. How does the adrenal gland do all that? Well. There are three hormones the adrenal gland secrets (epinephrine, cortisol and debydroepiandrosterone an adrenal steroid, a.k.a. DHEA and these help you in stressful situations.

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ADRENAL HORMONES Epinephrine The epinephrine is the hormone that is known as the fight-or-flight hormone. If you are threatened or anxious your heat rate will go up and more blood rushes to your heart and muscles. You will have a higher tolerance to pain and your pupils widen as your brain function shifts into warp drive. You are in a heightened state of alertness. An action that happened quickly can upon recall seem like it occurred in slow motion. The adrenal gland can become exhausted if this hormone gets overused. So, beware if you tend to be addicted to the rush of dangerous excitement. People who are addicted to the adrenalin rush may later find they have an exhausted adrenal gland. Epinephrine should only be used by the body in real emergencies. The human body does not have an unlimited supply of epinephrine. Cortisol The cortisol hormone helps control your appetite, regulates the immune systems inflammation responses and provides energy increases to the body. Some individuals are prescribed drugs to replace the cortisol hormone and they can encounter some nasty side effects. Pharmaceutical adrenal support is tricky business and the cortisol level can become either too high or low causing all kinds of problems. For example; osteoporosis, kidney damage, weight gain, edema, high blood sugar, yeast infections, low immunity, allergies and cancer. Modern medicine has no preventative therapies and cant detect the beginning stages of adrenal collapse. It is not until the patient receives a diagnosis of Cushings disease or Addisons disease (adrenal cancer) that any medical treatment via drugs or surgery is recommended. Debydroepiandrosterone The debydroepiandrosterone hormone (a.k.a. DHEA) helps your body build protein and assists the immune system in fighting disease and to repair damage due to disease. Without DHEA your body cannot make male and female reproductive hormones (testosterone and estrogens) and also cant hold off the effects of aging. Women are more severely affected with adrenal gland dysfunction and will experience a more difficult transition during menopause and pre-menopause. ADRENAL CANCER If you receive a diagnosis of adrenal crisis it means your adrenal gland has cancer. This is a gland that is limping along and will die without intervention. The adrenal and suprarenal glands are triangle-shaped endocrine glands that sit on top of the kidneys. Their primary job is to help you deal with stress and help you recover from illness. How common is adrenal crisis? It has not been a major problem until recently. Not all cases of adrenal malfunction are reported or diagnosed correctly, however the ones that are reported account for about 300 to 500 cases each year. The median age affected is middle-age and the elderly. Adrenal problems are usually picked up on MRI scans when a patient is preparing for another procedure or has been in an accident. Children are not immune to adrenal malfunction and most often affects female children. Research has not been able to pin-point any risk factors and claims it cannot be prevented. Prescribed medication to treat adrenal disease will prevent the adrenal gland from functioning at all and organ atrophy will occur. ADRENAL MALFUNCTION SYMPTOMS The most common symptoms are fatigue, weakness, low immunity, osteoporosis, insomnia, weight gain, skin problems, hair loss, and depression. As you can see, adrenal disease can mimic other health problems. Many patients are misdiagnosed as having depression, insomnia, obesity, lupus, arthritis or menopause.

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SUPER VITAMIN TO THE RESCUE Why are the adrenal glands ill? The diet of the individual is low in vitamin B5 (Panthothenic acid). Vitamin B5 was discovered in 1933 by Dr. Roger Williams. It is a nutrient that is present in all our cells. So, Dr. Williams named it panthothenic acid from the Greek word Panthothen meaning everywhere. Without vitamin B5 the glands cannot produce hormones or neurotransmitters. The entire metabolism is thrown off kilter and cant metabolize carbohydrates, fats or proteins. Once this vitamin was widely available in foods but our foods are now adulterated and lack much of the vital nutrition for our bodys need to work properly. Also, some drugs or over-the-counter products will cause a depletion of vitamin B5 such as aspirin and salicylates. Products containing salicylates are: acne products, Breath Savers, Alka Selzer, artificial flavorings, cosmetics, detergents, fabric conditioners, hair products, gum, lozenges, mouthwash, pain relievers, Pepto-Bismol, tanning lotions, toothpaste, wart remover, food coloring (yellow dye #5 & #6, Red dye #40) and many other products. So, you can see where adrenal disease can easily become an epidemic. WHERE CAN YOU GET VITAMIN B5? The adrenal glands help us ward off infections and speeds recovery from ill health. However, it is going to need nutrition and you will find vitamin B5 in brewers yeast, egg yolks, fish (salmon & trout), beef, pork, whole grains, dried beans, sweet potatoes, green peas, cauliflower and avocados. The RDA (established during food rationing WWII) recommends 10 100 mg of vitamin B5 daily. During prolonged stress or if you engage in vigorous exercise you will require more (100 1000 mg). Also, cooking foods will diminish the vitamin nutrition. Try to get as much as possible from fresh, unprocessed vegetables. YOU HAVE TOOLS The adrenal glands help us ward off infections and speeds recovery from ill health. Modern medicine may not have solutions via drugs; however the malfunction can be addressed. If I had adrenal problems I would use a combination of herbs (but avoid herbs with natural salicylates such as peppermint, eucalyptus, wintergreen and spearmint). Youll find super food nutrition in the Body Foundation Food Mix and mullein herb will help sooth glands and lobelia herb will help create an exodus of toxins from the glands. Look for Mullein Tincture and Relaxation Formula (lobelia tincture) at Apothecary Herbs. I would use the ginseng herbs with the Echinacea root to assist the immune system and give the body endurance. Look for Immune Booster and American or Siberian Ginseng formulas at Apothecary Herbs. The guto kola, hawthorn berries, cayenne and ginger will strengthen the circulatory system as well as help the gland to balance hormone levels. Look for Emotional Stress formula and, Heart & Cholesterol Formula at Apothecary Herbs. For added insurance I would use natural calcium and boron from plants to help the glands produce hormones and protect bones and for females I would add the female herbs to assist the endocrine system make the proper amount of hormones. Look for Calcium Formula and Female Cycle Balancer at Apothecary Herbs http://www.thepowerherbs.com or call 866-229-3663 International 803-746-0219. Glands need healthy blood, so do your organ cleanses and remove more toxins fast. Call the experts in organ cleansing, call Apothecary Herbs 866-229-3663, International 803-746-0219 online http://www.thepowerherbs.com, where your healthcare options just became endless. PURE ENERGY

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Pure energy is organic and instantly absorbed transporting nutrition to every cell in your body. It is a super food for the body to repair, build and fortify itself. Where do you get it? Its called Body Foundation Food Mix and is at Apothecary Herbs 866-2293663, International 803-746-0219 http://www.thepowerherbs.com. This pure energy food source is so efficient; you wont feel hungry between meals and can safely lose weight. SAVE ON THIS ITEM IN THE STOCK-UP SPECIAL NOW THROUGH 8/31/11. MALE & FEMALE ORGAN CLEANSES KITS Dont give disease a foothold. You will have the power to cleanse the bowel, urinary, liver, gall bladder and blood system with this cleanse package. For added cleansing, ask about how you can upgrade your order to include the prostate cleanse for men or the Kidney/Bladder cleanse for females. Go to http://www.thepowerherbs.com or call their 24-hour live customer service line 866229-3663, International 803-746-0219. NEW MALE HORMONE FORMULA NOW AVAILABLE Apothecary Herbs brand new formula to help balance male hormones Male Hormone Formula. Call 866-229-3663, International 803-746-0219 http://www.thepowerhergs.com THE POWER HERBS e-BOOK By popular demand The Power Herbs e-book is available with symptom/herb reference guide, information on organ cleansing and how to make your own herbal tinctures plus a whole lot more. Go to http://www.thepowerherbs.com and click on The Power Herb book cover on the right side of the home page to order. You must have email to order and receive the e-book download version of The Power Herb book for just $14.99. At this time, we do not offer this title in hard copy. SAVE ON THIS ITEM IN THE STOCK-UP SPECIAL $12.75 WHEN YOU ORDER 2 OR MORE. NOW THROUGH 8/31/11. MAKES A GREAT GIFT! Extra Strength Pain Relief & Emergency Heart Attack Pack Apothecary Herbs has the only double strength tincture on the market Extra Strength Pain Relief. Most companies wont take the time and expense to make a double tincture, but they enter the system in 60-seconds and work for 12-hours for just $25.95. If you cant get to an emergency room or medical doctor in time you will want the five powerful formulas in the Heart Attack Pack for just $99.00 (STOCK UP SPECIAL PRICE $84.15). Call Apothecary Herbs 866-229-3663, International 803-746-0219or order online at http://www.thepowerherbs.com. PROSTATE KIT THAT WORKS! Go to Apothecary Herbs http://www.thepowerherbs.com and type in Prostate in the search box or for more information or call 866-229-3663, International 803-746-0219. ONE-YEAR SUPPLY OF HERBAL MEDICNE (shelf life 10 to 15 years) See Apothecary Herbs One Year Supply of Herbal Medicine at http://www.thepowerherbs.com or call 866-229-3663, 803-746-0219. Call for a customized year supply or to set up installment payment for this package. WENDY WILSONS HERB TALK LIVE RADIO SHOW & ARCHIVES - Herb Talk Live is Internet streamed on www.gcnlive.com every Saturday 7-8:00 a.m. EST. Weekly shortwave; Thursday 4:00 p.m. rebroadcasts at 11:00 p.m. on WBCQ 7.415, American Voice

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Radio (pod cast, DSL, satellite) Tuesday & Thursday 7:00-8:00 p.m. EST. Radio show archives at http://www.thepowerherbs.com. Be well Herbalist, Wendy Wilson GOJI BERRIES Wild crafted Gobi berries full of antioxidants are now available in the 16 oz. size at Apothecary Herbs. Choose between 8 oz. for just $15.50 and the 16 oz. for just $25.80. 866-229-3663, International 803-746-0219 http://www.thepowerherbs.com 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% before shipping. Apothecary Herbs, 1646 West Hwy 160, Ste. 8148, Fort Mill, SC 29708 USA. US LETTERS From a Subscriber: FEMA Federal Family Don't think of it as the federal government but as your "federal family." In a Category 4 torrent of official communications during the approach and aftermath of Hurricane Irene, the Federal Emergency Management Agency has repeatedly used the phrase "federal family" when describing the Obama administration's response to the storm. The Obama administration didn't invent the phrase but has taken it to new heights. "Under the direction of President Obama and Secretary Janet Napolitano, the entire federal family is leaning forward to support our state, tribal and territorial partners along the East Coast," a FEMA news release declared Friday as Irene churned toward landfall. The G-word "government" has been nearly banished, with FEMA instead referring to federal, state and local "partners" as well as "offices" and "personnel." "'Government' is such a dirty word right now," says Florida State University communication professor Davis Houck. "Part of what the federal government does and any elected official does is change the terms of the language game into terms that are favorable to them." Palm Beach Post From a Subscriber: Thanks Bob. I am an out of work attorney. I was a prosecuting attorney for many years and grabbed the pension I had already earned thinking it would be gone had I remained. I live in the State of NJ. It is bankrupt. I fear that there are very strong similarities with Weimar Germany and the current situation in the US. I am of German blood and remember my grandparents speaking about the hyperinflation and the resulting starvation. The US government and many states are doing away with the cost of living adjustments in social security and pensions and are therefore inflating away their debts. The government is currently causing an actual panic among seniors

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whose CD accounts bear no interest since the inflation figures are a lie. These people gave their lives to this country, many fought in WW2, and are either too timid or too confused to purchase precious metals to protect themselves as you recommend. It is extremely upsetting. This is a complete disaster and will get much worse! Thanks, PS I will subscribe to the Forecaster after I get my next job. I am trying to economize. I pay for my health care albeit at a substantial discount. Best to you Bob! Keep up the excellent work! I heard you mention von Braun. His Saturn 5 rocket propelled the Apollo 11 to the moon in 1969. It was von Braun's design. I have lunch once a week with an engineer from MIT who worked on this mission. He is in his 70s like you Bob and is from Germany. He is now a day trader and is excellent in math. He is a very interesting guy to listen to at lunch. He was a young kid during the Apollo project. Von Braun's boyhood dream of building a rocket ship to the moon was realized. It is quite fascinating.

GOLD LETTERS From a Subscriber: Hi Bob, I notice a trend on CNBC called Gold Rush. Here's one about a mine in South Africa and features Ron Paul. http://goldsilver.com/video/the-rush-for-gold/ Here's another showing a private vault in London for SPDR holdings (GLD etf). I think they're acknowledging that the world is in a continuous gold bull market but they want to drive people into GLD and not educate people about getting physical gold and silver. I think the clip is a big scam that showing that GLD really has the gold they say they do. http://goldsilver.com/video/some-observations-on-bob-pisani-s-visit-to-gld-s-vault/ Regards, EUROPS LETTERS From a Subscriber: Point of interest

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Hi Bob More news, on September 10th, the opening day of the national Expo in Thessaloniki, a place where politicians give speeches on opening day, Papandreou is going to speak. Thousands of Greeks go to that event. It is now clear that 100+ vouleftes from PASOK (the administration), are calling for elections, the have concluded that the status quo is a dead end, there is no way out. Today Venizelos (Papandreou number 2), had a meeting with Anthony Samaras (Nea Dimokratia), about finding some common ground on the economy. Samaras has repeated what he has said many times before, he will not enter into any agreements with him or TROYKA, he is sticking with his positions as stated earlier again and again, he is not corruptible, he said the administration is doing direct opposite of what need to be tone to bring back the economy.. Samaras has already printed the ballots, he has his cabinet selected, ready for action. TROYKA has been handing out yellow and red slips to the administration, meaning, they have accomplished nothing. 186,000 more small business and shops will close down. Meanwhile Alpha Bank (a small Bank), that could not get any help from the national bank, is now getting in bed with investors from the Emirates (17% ownership), Latsis (Greek tycoon) and Euro Bank among others, they are expected to only large qualified borrowers. Greeks get nervous when they hear foreign investors. Greece is still the tourist Mecca, they did 15 million visitors in spite all the problems. Will keep you posted. From a Subscriber: Situation in Germany Dear M. Chapman: I regularly listen to you and Dr. Monteith on Radio Liberty via the Internet in Germany. Just a few comments on your estimation with regard to the situation in Germany. I am afraid I can\'t share your optimism concerning the German people. Our banks, especially Deutsche Bank, tell our 'Finanzminister', Mr. Schuble, what position to take when negotiating with his European colleagues. That was in the German press some weeks ago. Mrs. Merkel is about to lose her support in the CDU anyway sooner of later. And I agree with you that she has become a kind of Trojan Horse of the socialists to destroy conservative values. The trouble is that even if 25 CDU-representatives don\'t go along with the transfer union or issuing of Eurobonds, it won't save my country. The opposition, namely the Green party and the SPD out of blind naivet and economic incompetence will blindly follow their leadership voting for the transfer union. Then they will claim to have saved the country and a government, which is not able to close the ranks. It\'s tragic but especially the Green Party, which as a consequence of the Fukushima catastrophe has become very strong, is so antiGerman that they will be only too happy to have Germany lose her sovereignty as an independent nation state. Most politicians in the Bundestag unfortunately really do believe that saving the EURO is without alternative. Not until my people feel the harshness of severe austerity measures will the German population wake up and turn against their government. But then it will be too late, and who shall they vote for if the

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opposition is even worse. The only hope for Germany is the German Supreme Court provided that they support their own Grundgesetz (kind of a constitution), which prohibits a transfer union. The money power has become absolutely ruthless, trying to circumvent the law and the constitution by giving the esm fonds and their managers immunity and power even to pass tax payers' money on to European banks that lack liquidity. Keep on the good work. HEALTH- LETTERS From a subscriber: Bob, I've just finished reading 080111 today, enjoyed pages 22 and 23. I've added FIVE STAR ANISE, LIME, FLAXSEED, and TURMERIC to your wonderful list. ~*~*~*~*~*~*~*~*~*~ LOWER LIPOPOTEINS FAST! PLAQUE FORMATION -- THING OF PAST! To be healthy not a crime. When you go shopping next time You, too, can be buyer-smart. Put some of these in your cart! OLIVE OIL: wrong fats, free. SALMON for Omega 3. FIVE STAR ANISE buds steeped tea, CAYENNE PEPPER, LIME: colds free! SERBIAN GINSENG? Not me! TURMERIC taken with C! SWEET POTATOES for kidney, Cholesterol lowered be! ONIONS lower blood lipids. STRAWB'RIES: ellagic acids, Antioxidants, C, E. Antioxidant: GREEN TEA. GARBANZO BEANS: fiber done? Bad cholesterol-bile --- gone! GRAPES, lutein, (as in egg yolks) Reduced inflammation, folks! FLAX SEED: fiber (move begins) Omega-3 fats, Lignans. CELTIC SEA SALT: micro-mins....[minerals]

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CHERRIES, anthocyanins. Glycosides (plant sugars) in ALFALFA with saponin. APPLES & GRAPEFRUIT: pectin, K, Mg, quercetin.....[potassium, magnesium] Phenol procyanids a plus -Granny Smith! Red Delicious! TOMATOES, lycopine, (he knows!) GARLIC, 4 cloves daily dose! HAWTHORN BERRIES: blood vessel Elasticity works well. SPINACH, prevents oxidized 'Cholesterol-clogged' demise. By Pauline E Partridge, August 30, 2011 US LINKS Infowars TV Interviews Rick Perry Sex Scandal Accuser http://www.infowars.com/infowars-tv-interviews-rick-perry-sex-scandal-accuser/ Ron Paul: Cut Foreign Aid, Unshackle Israel, Leave Iran Alone http://www.youtube.com/watch?v=ZwguHyXgbgM&feature=player_embedded 'The Art of Urban Survival' Book by Steffan Verstappen http://www.forbiddenknowledgetv.com/videos/socio-economics/the-art-of-urbansurvival.html Containers Slump to 50-Year Low as Sales Slow http://www.bloomberg.com/news/2011-08-30/containers-slump-to-50-year-low-as-shipsfrom-china-slow-freight-markets.html S&P Rates Subprime Mortgages Higher Than U.S. http://www.bloomberg.com/news/2011-08-31/subprime-mortgage-bonds-getting-aaarating-s-p-denies-to-u-s-treasuries.html The Last Whistleblower By Paul Craig Roberts http://lewrockwell.com/roberts/roberts322.html CGI: LIST: The Rothschild-Owned Central Banks of the World! http://www.rumormillnews.com/cgi-bin/forum.cgi?read=214317 The Ripple Effect: Water Shortages Likely in Most Populated Cities By Tess Pennington

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http://lewrockwell.com/orig12/pennington6.1.1.html Obama's uncle is called a fugitive http://www.boston.com/news/local/massachusetts/articles/2011/08/31/obamas_uncle_cal led_a_fugitive_from_deportation_since_1992/ Paul Craig Roberts: America is Truly being Destroyed by Design - The Alex Jones Show 1/3 http://www.youtube.com/watch?v=rYCW6pDEIcI Paul Craig Roberts: 9/11 After A Decade, Have We Learned Anything? - Alex Jones Tv 2/2 http://www.youtube.com/watch?list=PL6E7A2568C9F5CDE6&feature=player_embedded &v=ar6lfg8d_gc# Area 52 Worker Reveals All - Alex Jones http://beforeitsnews.com/story/1026/565/NL/Area_52_Worker_Reveals_All__Alex_Jones.html The Presidents Enumerated Powers, Rulemaking by Executive Agencies, & Executive Orders http://canadafreepress.com/index.php/article/39873#.Tl0rAuSxUj0.gmail Mission Accomplished in Libya? By Ron Paul - Daily Paul http://www.24hgold.com/english/news-gold-silver-mission-accomplished-in-libya.aspx?article=3612236930G10020&redirect=false&contributor=Ron+Paul Office of the Comptroller of the Currency Wakes Up From Dead Sleep? http://www.getsmartaboutbanks.com/2011/04/office-of-the-comptroller-of-the-currencywakes-up-from-dead-sleep/ BAD NEWS SNIPER! http://www.youtube.com/watch?v=3ciFi-1YYdM The tragedy of the too big to fail banking sector over $1 trillion in deposits are over the $250,000 FDIC limit. $6.5 trillion in insured deposits backed by $3.9 billion. http://beforeitsnews.com/story/1027/428/NL/ Ron Paul: US bankrupt, FEMA wasteful http://presstv.com/detail/196506.html In America the Rule of Law Is Vacated By Paul Craig Roberts http://lewrockwell.com/roberts/roberts323.html John Williams Forecasts: Catastrophe Ahead http://www.shtfplan.com/forecasting/john-williams-forecasts-catastropheahead_09012011 A message to the Free World

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By Thomas Yates http://statichost.dyndns-free.com:81/articles/A-message-to-the-Free-World.html The Silver Stealers http://silverstealers.net/tss.html Israel's Operation Summer Seeds - by Stephen Lendman http://sjlendman.blogspot.com/2011/08/israels-operation-summer-seeds.html NATO's Genocidal Rape of Libya - by Stephen Lendman http://sjlendman.blogspot.com/2011/08/natos-genocidal-rape-of-libya.html Judge rules on Obama's Social Security Number http://www.wnd.com/?pageId=339629#ixzz1WbgZMujk Colleges look hard to replace earmarks http://www.boston.com/news/education/higher/articles/2011/09/01/mass_colleges_scram ble_for_funding_after_earmarks_end/ N.Y. billing dispute reveals details of secret CIA rendition flights http://www.washingtonpost.com/world/national-security/ny-billing-dispute-reveals-detailsof-secret-cia-rendition-flights/2011/08/30/gIQAbggXsJ_story.html In America The Rule Of Law Is Vacated Bank fraudsters, torturers, and war criminals running free... By Dr. Paul Craig Roberts http://www.globalresearch.ca/index.php?context=va&aid=26326 Secret Exemptions Allowed Speculators to Distort Futures Markets http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&a mp;Itemid=74&jumival=7174 Clerk Shoots Robber in The Face (Video) http://www.youtube.com/watch?v=Jkc8AJLRVJs&feature=related Man Faces Life In Jail For Recording Police http://beforeitsnews.com/story/1033/284/NL/Man_Faces_Life_In_Jail_For_Recording_P olice.html Michel Chossudovsky on the 9/11 Tenth Anniversary http://www.corbettreport.com/michel-chossudovsky-on-the-911-tenth-anniversary/ 'I Visited A FEMA Facility Today' http://beforeitsnews.com/story/1035/924/I_Visted_A_FEMA_Facility_Today.html Pouring the Red Ink Down the Sink http://www.counterpunch.org/2011/09/01/pouring-the-red-ink-down-the-sink/ Four Years Later: The Kennebunkport Warning of August 2007 Confirmed by Dick Cheney in his New Autobiography

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http://tarpley.net/2011/08/31/four-years-later-the-kennebunkport-warning-of-august-2007confirmed-by-dick-cheney-on-his-new-autobiography/ http://www.24hgold.com/english/news-gold-silver-bank-deposits-and-black-mail-point-tomore-crisis.aspx?article=3612471842G10020&redirect=false&contributor=Justice+Litle Depreciation Is Nothing New By Ron Paul http://lewrockwell.com/paul/paul761.html 8 Signs That the US Government is Making It Harder for You to Become an Expat By Susan Beverley http://lewrockwell.com/spl3/govt-making-it-harder-to-be-expat.html Goldman Reaches Foreclosure Settlement With The Fed & Ny Regulators Calling For 25% Loan Forgiveness http://dailybail.com/home/goldman-reaches-foreclosure-settlement-with-the-fed-nyregul.html Chris Whalen Annihilates Ny Fed Director Kathryn Wylde http://dailybail.com/home/chris-whalen-annihilates-ny-fed-director-kathryn-wylde.html Chris Whalen Recommends Chapter 11 Bankruptcy For Bank Of America: Default And Liquidation Under Dodd-Frank http://dailybail.com/home/chris-whalen-recommends-chapter-11-bankruptcy-for-bank-ofam.html DOJ Advises Gibson Guitar to Export Labor to Madagascar http://www.redstate.com/aglanon/2011/08/31/doj-advises-gibson-guitar-to-export-labor/ Tea Party Striving to Break the Polemic Paradigm of Global Financiers & their Tycoons http://beforeitsnews.com/story/1038/576/Tea_Party_Striving_to_Break_the_Polemic_Par adigm_of_Global_Financiers_their_Tycoons.html Ron Paul Can Win http://www.huffingtonpost.com/robin-koerner/ron-paul-canwin_b_939993.html?ref=mostpopular Ron Paul interview on NECN 9/1/11 http://www.youtube.com/watch?v=rfPequNaTa4&feature=feedu UN Report on Mavi Marmara Massacre - by Stephen Lendman http://sjlendman.blogspot.com/2011/09/un-report-on-mavi-marmara-massacre.html Israel's Proposed Counterterrorism Law - by Stephen Lendman http://sjlendman.blogspot.com/2011/09/israels-proposed-counterterrorism-law.html Besieging and Terror Bombing Sirte - by Stephen Lendman http://sjlendman.blogspot.com/2011/09/besieging-and-terror-bombing-sirte.html THE THREE STOOGES

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http://www.nakedtrader.com/commentary.aspx U.S. to sue big banks for billions over mortgage crisis http://www.telegraph.co.uk/news/worldnews/northamerica/usa/8736894/U.S.-to-sue-bigbanks-for-billions-over-mortgage-crisis.html Keiser Report: Cheap Slaves of Deflation (E178) http://www.youtube.com/watch?v=VgIKMGQTSnM\\ U.S. Is Set to Sue a Dozen Big Banks over Mortgages The Federal Housing Finance Agency suits, which are expected to be filed in the coming days in federal court, are aimed at Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank http://www.nytimes.com/2011/09/02/business/us-is-set-to-sue-dozen-big-banks-overmortgages.html GOLD LINKS Sean Boyd - Sean Boyd Agnico-Eagle http://watch.bnn.ca/#clip522878 Hide Your Liberty Dollars, Secret Service Is Coming To Confiscate! By Mac Slavo http://lewrockwell.com/slavo/slavo54.1.html The Fractional Reserve Aspects of Gold ETFs http://www.fgmr.com/fractional-reserve-aspects-of-gold-etfs.html Gold This Decade -FutureMoneyTrends.com http://www.youtube.com/watch?v=CvSEWLEqmY4 The Fractional Reserve Aspects of Gold ETFs http://www.fgmr.com/fractional-reserve-aspects-of-gold-etfs.html CANADA LINKS Canadian Activist Blogger Arrested After Exposing G20 "Infiltrator" http://www.activistpost.com/2011/09/canadian-activist-blogger-arrested.html Canadas Economy Contracts for First Time Since 2009 on Decline in Exports http://www.bloomberg.com/news/2011-08-31/canada-s-economy-contracts-for-first-timesince-2009-recession.html EUROPE LINKS Merkel backs euro fund boost, faces revolt risk

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http://www.reuters.com/article/2011/08/31/us-eurozone-germanyidUSTRE77U2O520110831 HR 2829 Targets Palestinian Statehood - by Stephen Lendman http://sjlendman.blogspot.com/2011/09/hr-2829-targets-palestinian-statehood.html NATO LATEST CHARNAL HOUSE http://sjlendman.blogspot.com/2011/09/libya-natos-latest-charnal-house.html Bank Deposits and "Black Mail" Point to More Crisis http://www.24hgold.com/english/news-gold-silver-bank-deposits-and-black-mail-point-tomore-crisis.aspx?article=3612471842G10020&redirect=false&contributor=Justice+Litle ECB Doesnt Rule Out PIIGS Gold as Collateral for Gold Backed Eurobonds http://beforeitsnews.com/story/1042/533/NL/ECB_Doesn_t_Rule_Out_PIIGS_Gold_as_ Collateral_for_Gold_Backed_Eurobonds.html LSE sets sights on Europe's largest clearing house http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8738596/LSE-setssights-on-Europes-largest-clearing-house.html EU law "gutted" by bail-outs, growls Bundesbank http://www.telegraph.co.uk/finance/financialcrisis/8736194/EU-law-gutted-by-bail-outsgrowls-Bundesbank.html LSE sets sights on Europe's largest clearing house http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8738596/LSE-setssights-on-Europes-largest-clearing-house.html EU law "gutted" by bail-outs, growls Bundesbank http://www.telegraph.co.uk/finance/financialcrisis/8736194/EU-law-gutted-by-bail-outsgrowls-Bundesbank.html UK and European manufacturing output slowing (01Sept11) http://www.youtube.com/watch?v=A9IMWhkFiRg AUSTRALIA LINKS Reserve Bank boss warns of further job cuts http://www.news.com.au/business/business-smarts/reserve-bank-boss-warns-of-furtherjob-cuts/story-e6frfm9r-1226123687766 CHINA LINKS Now this is a Great Commercial http://joshspector.com/2011/02/13/now-this-is-a-great-commercial/?utm_source MIDDLE EAST LINKS

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Why Gaddafi got a red card By Pepe Escobar http://www.atimes.com/atimes/Middle_East/MI01Ak02.html Algeria Threatened With Al Qaeda Terror Attack Over Harboring Gaddafi Family http://theintelhub.com/2011/08/31/algeria-threatened-with-al-qaeda-terror-attack-overharboring-gaddafi-family/ Libya: The Greatest Betrayal By Tony Cartalucci http://www.bushstole04.com/Libya/libya_greatest_betrayal.htm Media Manipulation of Syria Coverage http://www.corbettreport.com/media-manipulation-of-syriacoverage/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+Co rbettReportRSS+%28The+Corbett+Report%29 AFRICA LINKS Malema's fight-back strategy http://mg.co.za/article/2011-09-02-malemas-fightback-strategy http://finance.yahoo.com/news/Investigation-Reveal-How-Much-wscheats1709997770.html?x=0&.v=1 <http://finance.yahoo.com/news/Investigation-Reveal-HowMuch-wscheats-1709997770.html?x=0&amp;.v=1 HEALTH LINKS Aspartame: Sweet Misery A Poisoned World - FULL LENGTH http://www.youtube.com/watch?v=DJ0lEZQF1-Y&feature=player_embedded

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