Ron Paul-Audit the Fed hearing 9/25

Impending Mandatory Vaccinations Will Affect The Health, Jobs of Canadians

Prevent Disease
September 23, 2009

After recent reports that Canada’s public health officials are engaged in cover-up operations to conceal flu origin, there is now evidence and growing concerns and that all the warnings, dire predictions and preparations for the H1N1 swine flu are leading to mandatory vaccinations under the guise of “voluntary cooperation” initiatives from Canadian health agencies.

The Canadian pandemic plan calls for the vaccination of the entire population over a period of two months. Vaccination campaigns are targeting the workplace, schools, recreational centres and even bars and nightclubs. Community mass vaccination clinics are scheduled to inoculate millions of people in every province in Canada.

The Public Health Agency of Canada (PHAC) state on their own website that International Health Regulations provide a legal framework under the World Health Organization (WHO) to protect against and control the international spread of disease such as a flu pandemic. They also state that they will establish a process that is to be followed by the WHO for determining and responding to a public health emergency of international concern.

Under the WHO charter determined in 2005, it has the authority to dissolve Canada’s government policies on emergency planning, mandatory vaccinations and to take control should there be a “pandemic”. This applies to any country signed onto the WHO.

From the WHO 2005 declaration: (excerpted) “ Under special pandemic plans enacted around the world…, national governments are to be dissolved in the event of a pandemic emergency and replaced by special crisis committees, which take charge of the health and security infrastructure of a country, and which are answerable to the WHO and EU in Europe and to the WHO and UN in North America.”

When it comes to the legal framework under the WHO, PHAC has absolutely no details or restrictions in terms of who will administer the inoculations and how. This means that once WHO pandemic policies are enacted, it could allow non-healthcare personnel, such as police and military to vaccinate people against their will to enforce mandatory vaccinations. These are obviously worse case scenarios, but the laws regarding pandemic preparedness and procedures are clear and these policies are not debatable once the government declares a nationwide emergency.

Many countries are in the process of acquiring from Baxter, Novartis, GlaxoSmithKline and other pharmaceutical companies enough doses of vaccine to vaccinate their entire population twice. Many countries are remaining quiet about mandatory vaccination, simply saying they will make vaccination ‘available’ to all on a priority basis. But Greece and Switzerland have already announced that their programs will be mandatory and enforced by the military. There are unconfirmed reports that Norway and Israel have done the same.

Confirmed reports of regional H1N1 pandemic planning documents from the UK indicate that local authorities intend to set up mass vaccination sites to be overseen by crowd control police. The United States is preparing for military ‘assisted’ mandatory vaccination but has not explicitly declared its intentions to the public.

Individual Canadian provinces are supposedly given the authority to decide how to achieve the highest level of vaccination. The Canadian government claims this does not mean they will make it mandatory or use physical force. However, there are tactics in place, including heavy doses of propaganda, along with various forms of social and economic coercion which suggest otherwise. Just how it will all play out depends very much on the individual province, but reports from the public suggest that the current theme of intimidation is requiring many Canadian workers to demonstrate that they have received the flu vaccination to remain employed.

“Canada is deceiving the public and promoting a whole new dimension of voluntary cooperation for vaccines,” said Margaret Sauvé, a nurse and medical administrator from Montreal, Quebec. “If this is their idea of voluntary cooperation, I would really hate to see what a mandatory policy would look like, because we have no choice if we want to keep our jobs” she added.

The Association of Local Public Health Agencies in Ontario is already on record supporting mandatory seasonal flu shots for health workers. The group says that applies to H1N1 too.

“Our position is it should be mandatory irrespective of the pandemic; our position is on seasonal flu, which this could turn out to be,” said Gordon Fleming, manager of public health issues. “The flu is the flu is the flu.”

Seven years ago, facing vigorous protest, Ontario withdrew a law making it mandatory for paramedics to get flu shots. This law would be null and void under the powers of the WHO pandemic charter which would trump provincially mandated laws regarding vaccination policy.

Health workers “do have a responsibility to stay healthy and protect their patients and co-workers by getting a flu shot,” said Andrew Morrison of the Ontario Ministry of Health and Long-Term Care.

The percentage of Canadian health care workers in long-term care facilities who get an annual flu shot is 50-70%. The evidence currently suggests that as a priority group targeted for vaccines, healthcare workers will not only be given priority, but will also not have any freedom of choice to refuse the vaccination. “Healthcare workers who are in non-compliance for their inoculation of flu vaccines will likely be suspended pending an investigation, or terminated,” stated a medical officer from a Toronto-based healthcare organization.

A report from PHAC’s website on August 6, 2009, stated that just over 50 million doses of H1N1 vaccine were ordered from GlaxoSmithKline (GSK) under Canada’s ten-year sole-supplier contract with them.

GlaxoSmithKline was criticized by health experts last year for continuing vaccine trials in Argentina which killed more than a dozen babies. GSK has routinely conducted trials in Third World countries on poor people who often feel trapped into participating in human health experiments in order to receive medical care or other necessities.

Canada’s yearly flu vaccine developed by GSK, contains (as noted on Biotechnology Information Institute website) a number of toxins including formaldehyde, sodium deoxycholate, thimerosal (a dangerous mercury derivative) and chicken embryo (egg) culture which has been linked to a vast number of allergic responses.

In addition to the above toxins, the H1N1 vaccine scheduled for deployment in Canada will have the squalene adjuvant AS03, polysorbate 80, potassium dihydrogen phosphate, and aluminum adjuvant among others.

Oil-based vaccination adjuvants like squalene have been proven to trigger chronic, auto-immune diseases, immune-mediated joint-specific inflammation and catastrophic injury to the nervous system causing diseases such as rheumatoid arthritis, multiple sclerosis and systemic lupus erythematosus.

The use of the adjuvants in flu vaccines is not licensed or approved in the U.S. or Canada. Public health advocates are crying fowl and stating that it clearly demonstrates the irresponsible nature of American and Canadian health officials. They have willingly endangered the lives of their citizens, by-passing regulatory procedures for vaccine safety and efficacy in exchange for the “emergency use” practices declared by International Health Regulations.

Anti-vaccine advocates, drug investigators and health experts are warning Canadians at unprecedented rates, that not only are adjuvanted vaccines illegal for use in Canada, but it will be impossible for studies to conclusively determine their safety by the October-November timeline proposed for government vaccination campaigns.

Some health experts question why Canada would order a small quantity of non-adjuvanted H1N1 vaccine (approx. 1.2 million doses) as part of its total order of just over 50 million doses. “This implies that health officials in Canada are well aware of the dangers associated with squalene,” stated Marco Antonescu, a Los Angeles based microbiologist and vaccine researcher.

PHAC stated on their website that the purchase of a small quantity of non-adjuvanted vaccine is a precautionary measure for pregnant women as no clinical data of the safety of adjuvanted vaccine in this group is available. “That’s quite the overstatement,” says Antonescu. “There is no clinical data anywhere on the long-term safety of adjuvanted vaccines for any group.”

The side effects and contraindications listed for all adjuvanted vaccine studies are all based on short-term assessment. “You cannot assess the safety of adjuvants without long-term subject studies, since this is when many of the problems arise, especially in the months and years that follow the vaccination,” he added.

High rates of Guillain-Barre syndrome, a neurological disorder that can cause paralysis was a result of adjuvanted vaccines used in the 1976 swine flu scare.

“Guillain-Barre syndrome is always a concern and Canada is obviously ready to pull the plug on these adjuvanted vaccines and make the switch to their non-adjuvanted stockpile should large numbers of people begin reacting, which is a likely scenario,” Antonescu concluded.

Despite the dangers clearly associated with adjuvants, the WHO has maintained their position that there is no danger and insists that there are no special concerns about the safety of adjuvanted H1N1 vaccines.

GSK admits that they have not completed even one of more than 15 studies in over 9000 adults and children (including infants) across Europe, Canada and the US to evaluate the H1N1 adjuvanted vaccine. No data from this clinical development programme has been submitted to Canadian health regulators, despite plans to begin inoculations as early as October.

Yet, PHAC is stating that vaccine production remains on target. “We remain on target to have a safe and effective vaccine available in November 2009.”

With all of the careless and ill-considered decisions made by Canadian health officials, PHAC still has the audacity to insist that the government of Canada employs the most advanced science available to help ensure the safety and effectiveness of vaccines. Morever, they suggest that their ludicrous timelines are largely consistent with pandemic vaccine development internationally.

Health epidemiologist, Michael Hager has worked with health agencies that deal directly with PHAC. He comments “most of the directors of the Public Health Agency of Canada are the most cretinous and malicious health officials that could ever run a national health agency. They have proved beyond a shadow of a doubt that they simply cannot be trusted to safeguard the health and wellness of Canadian citizens.”

Nurses Plan Rally To Protest Mandatory Swine Flu Shot

Nurses Plan Rally To Protest Mandatory Swine Flu Shot 220909top2

Albany nurses and other health professionals are planning to stage a rally next week to protest a state regulation that mandates they will lose their jobs if they refuse to take the swine flu shot, as fears grow about the vaccine’s dangerous ingredients and government plans to forcibly inoculate whole populations with the H1N1 jab.

Earlier today we reported on the case of “Clare,” a daycare worker in Albany who, despite having minimal contact with hospital staff who work in a separate building, an exemption allowed in the official decree, was ordered to take the seasonal flu shot on the spot or be fired. She was also advised that the same procedure would be in place for the swine flu shot, as is outlined in the New York State Department of Health’s emergency regulation issued in August.

Now nurses across the state are standing up against government intimidation to take the shot, pointing out that the vaccine has not been properly tested and contains mercury, squalene and other dangerous additives.

The New York State Nurses Association is supporting a demonstration on behalf of nurses set to take place next week, reports Newsday.

“This vaccine has not been clinically tested to the same degree as the regular flu vaccine,” said Tara Accavallo, a registered nurse in Stony Brook’s neonatal intensive care unit, the division that has produced a number of protesters. “If something happens to me, if I get seriously injured from this vaccine, who’s going to help me?”

Accavallo says she is willing to lose her job if need be, which is exactly what will happen to thousands of other health professionals on November 30 if the government refuses to back down.

Rob Kozik, another registered nurse in Stony Brook’s neonatal intensive care unit, said he has no problems with a seasonal vaccine but he has deep concerns about being immunized against H1N1. “I usually get vaccinated against the flu, but they are mandating an untested and unproven vaccine,” Kozik told Newsday

“The H1N1 vaccine already has a poor track record,” he added. “Back in 1976 there was vaccine [to protect against swine flu] that caused death and Guillain-Barre syndrome,” said Kozik, referring to a nerve-damaging disorder that some people linked to the vaccine. He said he also worries about the vaccine additive thimerosal, which is used as a preservative in some doses of the vaccine.

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According to Dr. Steven Walerstein, medical director of Nassau University Medical Center where H1N1 vaccinations have already started, 25 workers at the institution refused to take the shot and were later “referred to human resources and counseling.”

If polls are proven accurate, at least a third of nurses and health workers in the U.S. and the UK will refuse to take the shot, with another third still undecided.

The fact that health professionals, and even employees loosely affiliated with hospitals, are being intimidated into taking the shot, proves President Obama’s claim that the vaccine will be voluntary to be deceptive and misleading. At the very least people’s livelihoods are on the line if they refuse to be injected and elsewhere, in countries such as Ireland and Greece, authorities have threatened large fines and jail time for people who refuse the vaccine.

As we have previously documented, the swine flu vaccine was rushed through safety procedures while governments have provided pharmaceutical companies with blanket immunity from lawsuits arriving out of the vaccine causing deaths and injuries.

It was previously revealed that some batches of the vaccine will contain mercury, a toxin linked with autism and neurological disorders. The vaccine will also contain the dangerous ingredient squalene, which has been directly linked with cases of Gulf War Syndrome and a host of other debilitating diseases.

It was also recently reported that the UK government sent a confidential letter to senior neurologists telling them to be on the alert for cases of a brain disorder called Guillain-Barre Syndrome (GBS), which could be triggered by the vaccine. The CDC in America replicated this warning weeks later.

As a result of the dangers of the vaccine becoming widely known, authorities are moving to get out ahead of the story by acknowledging that millions of health problems in the aftermath of a vaccination campaign will be blamed on the vaccine, citing the 1976 swine flu debacle when the shot proved far deadlier than the actual virus.

Reuters reports that public health officials, “Expect an avalanche of so-called adverse event reports, which are reports of death, illness or other health trauma that occur within two weeks after receiving treatment — in this case, the swine flu vaccine,” in reaction to an estimated “one million heart attacks, 700,000 strokes and 900,000 miscarriages.”

Related article:

Health-care workers protest mandate for swine flu shots

EU Plans Massive Surveillance Panopticon That Would Monitor “Abnormal Behavior”

New incarnation of Echelon is a huge lurch forward in the creation of the prison planet based on social theorist Jeremy Bentham’s 18th century concept of keeping slaves oppressed

EU Plans Massive Surveillance Panopticon That Would Monitor Abnormal Behavior 110106surveillance1

The European Union is developing a 21st century panopticon, a beast surveillance system that critics describe as “Orwellian,” “sinister,” and “positively chilling,” that would collate data from numerous sources, including surveillance cameras and personal computers, in order to detect “abnormal behavior” across the entire continent.

In a broader sense, this is part of the move towards creating a pan-European federal police force, where information and powers are shared as part of a centralized system. It is also a giant step towards the creation of a European CIA tasked not with keeping tabs on foreign enemies, but spying on its own population.

The surveillance system, known as Project Indect, promises to collect information by way of “continuous monitoring” of “web sites, discussion forums, usenet groups, file servers, p2p networks [and] individual computer systems”. It will also use CCTV feeds and other surveillance methods to develop models of “suspicious behavior” by analyzing the pitch of people’s voices (suggesting that private conversations will be recorded) as well as “the way their bodies move”.

Its main objective will be the “automatic detection of threats and abnormal behavior or violence”.

This is Echelon on steroids, a new version of the decades old NSA-run program that has already been spying on citizens for years, updated and expanded for the technological applications of the early 21st century. In 1999, the Australian government admitted that they were part of an NSA-led global intercept and surveillance grid in alliance with the US and Britain that could listen to “every international telephone call, fax, e-mail, or radio transmission,” on the planet. Project Indect is merely a new incarnation of the same beast surveillance system.

Open Europe analyst Stephen Booth described the project as “Orwellian” and a “huge invasion of privacy,” noting that European citizens’ own taxes will go towards a program that treats them all as guilty until proven innocent.

“Profiling whole populations instead of monitoring individual suspects is a sinister step in any society,” added Shami Chakrabarti, the director of human rights group Liberty.

“It’s dangerous enough at national level, but on a Europe-wide scale the idea becomes positively chilling,” she said.

Project Indect is a huge lurch forward in the agenda to construct a mammoth surveillance pen within which the population of the entire planet is imprisoned.

The methods being employed to do this are a technologically advanced throwback to social theorist Jeremy Bentham’s 1785 concept of The Panopticon, a specially constructed prison building designed “to allow an observer to observe (-opticon) all (pan-) prisoners without the prisoners being able to tell whether they are being watched, thereby conveying what one architect has called the “sentiment of an invisible omniscience.”

Bentham described the Panopticon as “a new mode of obtaining power of mind over mind, in a quantity hitherto without example.”

The notion that the individual does not know when they are being watched by the authorities is key in achieving the ultimate goal, to keep the population in a constant state of subjugation, unease and fear, leading them to self-regulate their own behavior.

According to Danish Institute for Human Rights researcher Peter Scharff, the Panopticon was intended to promote “self-regulation that was to be provoked by the constant surveillance”. The concept was eventually incorporated into many prisons that continue today as “podular” designs, which also maximizes the amount of people that can be controlled by one person. The fact that authorities are building societal prisons around us all today using the same basic methods of control is enough to send a chill down anyone’s spine and remind us once again that freedom is a myth.

This has nothing to do with catching criminals – as recent figures in the UK have proven, CCTV cameras have virtually no impact on crime whatsoever. This is all about letting the slaves know who their bosses are, it’s a psychological mind game set up to distinguish and reinforce the master-servant relationship between the state and the individual.

The endgame is to convince the individual that to express their freedom in public, to engage in any kind of protest or merely to question the power structure that surrounds them, is a “suspicious” act detrimental to society and that negative consequences will follow for any slave who dares to step outside of this invisible yet oppressive jail cell.


Ellen Brown, September 19th, 2009

A landmark ruling in a recent Kansas Supreme Court case may have given millions of distressed homeowners the legal wedge they need to avoid foreclosure. In Landmark National Bank v. Kesler, 2009 Kan. LEXIS 834, the Kansas Supreme Court held that a nominee company called MERS has no right or standing to bring an action for foreclosure. MERS is an acronym for Mortgage Electronic Registration Systems, a private company that registers mortgages electronically and tracks changes in ownership. The significance of the holding is that if MERS has no standing to foreclose, then nobody has standing to foreclose – on 60 million mortgages. That is the number of American mortgages currently reported to be held by MERS. Over half of all new U.S. residential mortgage loans are registered with MERS and recorded in its name. Holdings of the Kansas Supreme Court are not binding on the rest of the country, but they are dicta of which other courts take note; and the reasoning behind the decision is sound.

Eliminating the “Straw Man” Shielding Lenders and Investors from Liability

The development of “electronic” mortgages managed by MERS went hand in hand with the “securitization” of mortgage loans – chopping them into pieces and selling them off to investors. In the heyday of mortgage securitizations, before investors got wise to their risks, lenders would slice up loans, bundle them into “financial products” called “collateralized debt obligations” (CDOs), ostensibly insure them against default by wrapping them in derivatives called “credit default swaps,” and sell them to pension funds, municipal funds, foreign investment funds, and so forth. There were many secured parties, and the pieces kept changing hands; but MERS supposedly kept track of all these changes electronically. MERS would register and record mortgage loans in its name, and it would bring foreclosure actions in its name. MERS not only facilitated the rapid turnover of mortgages and mortgage-backed securities, but it has served as a sort of “corporate shield” that protects investors from claims by borrowers concerning predatory lending practices. California attorney Timothy McCandless describes the problem like this:

“[MERS] has reduced transparency in the mortgage market in two ways. First, consumers and their counsel can no longer turn to the public recording systems to learn the identity of the holder of their note. Today, county recording systems are increasingly full of one meaningless name, MERS, repeated over and over again. But more importantly, all across the country, MERS now brings foreclosure proceedings in its own name – even though it is not the financial party in interest. This is problematic because MERS is not prepared for or equipped to provide responses to consumers’ discovery requests with respect to predatory lending claims and defenses. In effect, the securitization conduit attempts to use a faceless and seemingly innocent proxy with no knowledge of predatory origination or servicing behavior to do the dirty work of seizing the consumer’s home. . . . So imposing is this opaque corporate wall, that in a “vast” number of foreclosures, MERS actually succeeds in foreclosing without producing the original note – the legal sine qua non of foreclosure – much less documentation that could support predatory lending defenses.”

The real parties in interest concealed behind MERS have been made so faceless, however, that there is now no party with standing to foreclose. The Kansas Supreme Court stated that MERS’ relationship “is more akin to that of a straw man than to a party possessing all the rights given a buyer.” The court opined:

“By statute, assignment of the mortgage carries with it the assignment of the debt. . . . Indeed, in the event that a mortgage loan somehow separates interests of the note and the deed of trust, with the deed of trust lying with some independent entity, the mortgage may become unenforceable. The practical effect of splitting the deed of trust from the promissory note is to make it impossible for the holder of the note to foreclose, unless the holder of the deed of trust is the agent of the holder of the note. Without the agency relationship, the person holding only the note lacks the power to foreclose in the event of default. The person holding only the deed of trust will never experience default because only the holder of the note is entitled to payment of the underlying obligation. The mortgage loan becomes ineffectual when the note holder did not also hold the deed of trust.” [Citations omitted; emphasis added.]

MERS as straw man lacks standing to foreclose, but so does original lender, although it was a signatory to the deal. The lender lacks standing because title had to pass to the secured parties for the arrangement to legally qualify as a “security.” The lender has been paid in full and has no further legal interest in the claim. Only the securities holders have skin in the game; but they have no standing to foreclose, because they were not signatories to the original agreement. They cannot satisfy the basic requirement of contract law that a plaintiff suing on a written contract must produce a signed contract proving he is entitled to relief.

The Potential Impact of 60 Million Fatally Flawed Mortgages

The banks arranging these mortgage-backed securities have typically served as trustees for the investors. When the trustees could not present timely written proof of ownership entitling them to foreclose, they would in the past file “lost-note affidavits” with the court; and judges usually let these foreclosures proceed without objection. But in October 2007, an intrepid federal judge in Cleveland put a halt to the practice. U.S. District Court Judge Christopher Boyko ruled that Deutsche Bank had not filed the proper paperwork to establish its right to foreclose on fourteen homes it was suing to repossess as trustee. Judges in many other states then came out with similar rulings.

Following the Boyko decision, in December 2007 attorney Sean Olender suggested in an article in The San Francisco Chronicle that the real reason for the bailout schemes being proposed by then-Treasury Secretary Henry Paulson was not to keep strapped borrowers in their homes so much as to stave off a spate of lawsuits against the banks. Olender wrote:

“The sole goal of the [bailout schemes] is to prevent owners of mortgage-backed securities, many of them foreigners, from suing U.S. banks and forcing them to buy back worthless mortgage securities at face value – right now almost 10 times their market worth. The ticking time bomb in the U.S. banking system is not resetting subprime mortgage rates. The real problem is the contractual ability of investors in mortgage bonds to require banks to buy back the loans at face value if there was fraud in the origination process.

“. . . The catastrophic consequences of bond investors forcing originators to buy back loans at face value are beyond the current media discussion. The loans at issue dwarf the capital available at the largest U.S. banks combined, and investor lawsuits would raise stunning liability sufficient to cause even the largest U.S. banks to fail, resulting in massive taxpayer-funded bailouts of Fannie and Freddie, and even FDIC . . . .

“What would be prudent and logical is for the banks that sold this toxic waste to buy it back and for a lot of people to go to prison. If they knew about the fraud, they should have to buy the bonds back.”

Needless to say, however, the banks did not buy back their toxic waste, and no bank officials went to jail. As Olender predicted, in the fall of 2008, massive taxpayer-funded bailouts of Fannie and Freddie were pushed through by Henry Paulson, whose former firm Goldman Sachs was an active player in creating CDOs when he was at its helm as CEO. Paulson also hastily engineered the $85 billion bailout of insurer American International Group (AIG), a major counterparty to Goldmans’ massive holdings of CDOs. The insolvency of AIG was a huge crisis for Goldman, a principal beneficiary of the AIG bailout.

In a December 2007 New York Times article titled “The Long and Short of It at Goldman Sachs,” Ben Stein wrote:

“For decades now, . . . I have been receiving letters [warning] me about the dangers of a secret government running the world . . . . [T]he closest I have recently seen to such a world-running body would have to be a certain large investment bank, whose alums are routinely Treasury secretaries, high advisers to presidents, and occasionally a governor or United States senator.”

The pirates seem to have captured the ship, and until now there has been no one to stop them. But 60 million mortgages with fatal defects in title could give aggrieved homeowners and securities holders the crowbar they need to exert some serious leverage on Congress – serious enough perhaps even to pry the legislature loose from the powerful banking lobbies that now hold it in thrall.

Ellen Brown developed her research skills as an attorney practicing civil litigation in Los Angeles. In Web of Debt, her latest book, she turns those skills to an analysis of the Federal Reserve and “the money trust.” She shows how this private cartel has usurped the power to create money from the people themselves, and how we the people can get it back. Her earlier books focused on the pharmaceutical cartel that gets its power from “the money trust.” Her eleven books include Forbidden Medicine, Nature’s Pharmacy (co-authored with Dr. Lynne Walker), and The Key to Ultimate Health (co-authored with Dr. Richard Hansen). Her websites are and

The Recession has Technically Ended: Surely You’re Joking, Mr. Bernanke!

by Bob Chapman

To borrow from an old joke about politicians, we ask our subscribers if they know how to tell when Helicopter Ben Bernanke, the current Fed Head, is lying.  Answer:  Whenever his lips are moving.  Now we hear from the Dollar-Destroyer that our recession has technically ended (heaven forbid that we should call our current Fed-caused calamity a depression, which is what it has been since Obama took office).  So we guess that we should take his word for it, seeing that every call he has made during his short tenure as Chairman of the Federal Reserve Board has been 100% wrong.

Surely you’re joking, Mr. Bernanke!!!  Apparently, we are just supposed to ignore our tanking dollar, rising unemployment, ever-weakening consumer spending (which only accounts for 70% of our GDP), a moribund real estate market, trillions in losses lying dormant in the zombie bank mark-to-model scam, not to mention all the off-the-books losses in derivatives pawned off on bank customers after Glass-Steagall was repealed as well as a glowing, smoking Quadrillion Dollar Derivative Death Star waiting to go supernova to the tune of tens of trillions in losses that will vaporize the entire world banking system thanks to the total deregulation of OTC derivatives courtesy of the Commodities Futures Modernization Act.  Then there are the ongoing multi-trillion dollar money siphons in Iraq and Afghanistan, thousands of banks, including all the “anointed” legacy banks, that are buried in derivatives and about to fail, a bankrupt Social Security System, a totally naked FDIC, a Fed printing trillions of dollars out of thin air, in secret, without any accountability, and future multi-trillion dollar budget deficits being incurred to keep a totally comatose economy on artificial, taxpayer-sponsored life support.  If that sounds like the end of a recession to the people on planet earth, then beam us up Scotty, we’re on a planet full of psychopaths suffering from hallucinations and delusions of grandeur.  Oh, and Scotty, make sure you remember to beam our gold and silver up with us.  We’re certainly going to need it the next time we come back to Planet Earth for an exploratory visit to see if the collective, ongoing phantasmagoric, mushroom-induced hallucinations of its inhabitants have finally run their course.

Note that open interest for the USDX, after rising to a little over 41,000, which is above average, has suddenly collapsed to below 34,000 as of 9/16/09.  The dollar is no longer being defended because the Illuminist cabal plans to take the stock markets up to a blow off interim top around Dow 10,000 to 10,500 with a final short-covering rally either this week, or perhaps the middle of next month, as general stock market options expire. They will then attempt to orchestrate a major stock market correction, which is now long expected and long overdue, just as gold and silver really start to take off.

The only question is, how long and how high will they try to take the stock markets before the long awaited correction is allowed to occur as the PPT withdraws its support.  The answer, as usual, will be determined by the gold and silver markets, and the strength of their now ongoing rallies.  If the rallies in gold and silver get out of hand as hundreds of millions of Chinese and Indians jump on the gold and silver bandwagons while China reneges on its losses in OTC gold and silver shorts, you can count on a major stock market correction immediately.  Another tip off will be a large jump in open interest for USDX futures contracts again, this time probably to well above the 50,000 level.  This will be the dollar’s and treasury’s last hurrah as the Illuminati will be immediately forced to recommence the stock rally or face the defeat of any and all of their proposed legislation on Goldman Sachs’ “cap and trade” scam, on the Obama-Kennedy-Kavorkian Euthanasia Plan and on the military expenditures for Afghanistan.  After citizens watch their pensions and mutual funds nose-dive toward oblivion for a second time, they will immediately decide that they can’t afford to spend another penny.  Crashing stock markets beyond a 50% correction would thoroughly discredit Obama’s Stimulus Pork Plan and would also put crushing pressure on the Fed.  Unless the stock markets recover quickly, the sheople will scream for the Fed’s blood and the Audit the Fed bill will become a foregone conclusion.

The Fed is now reeling backwards from a 1.5 million person Tea Party in Washington, and a stock market crash will make people downright venomous toward this cabal of middle class pauper-makers.  The Illuminati are now caught between a rock and hard place.  If they don’t crash the stock markets, the tanking dollar and treasuries will be toast and gold and silver will rip them a new one and expose their mishandling of our money supply and our economy.  If they crash the stock markets to put an obstruction in the path of gold and silver, they risk political annihilation, legislative suicide and an audit of the Fed, which will be followed by a hue and cry for its termination when everyone finds out how thoroughly they have been screwed for the past 95+ years.  Their options are weak and few.  All they can do is play the obstructionist with bogus delay tactics, but in the end they will get buried.

If they fail to take gold and silver down low enough to cover, a distinct possibility, the cartel’s shorts will get vaporized, and gold and silver will go on a moon-shot.  They are now fighting the combined populations of China, India, Japan, the Middle East, Southeast Asia, Germany and most of Western Europe, as well as the governments of Germany, China (especially the region of Hong Kong) and the Gulf Cooperation Council countries, whose gold they have stolen, leased or encumbered.  These nations, who foolishly entrusted their bullion to the US Illuminist cabal, have been left exposed as sitting ducks for a hyperinflationary supernova.  These countries are hopping mad about this, and all they have on their minds now is self-preservation and vengeance.  Due to the ongoing financial debacles and bailouts going on globally, and the profligate policies of central banks worldwide that are causing fiat currencies everywhere to lose ground against gold, people will be looking to precious metals for an alternative to paper assets denominated in fiat currencies.

We would highly suggest that Buck-Busting Ben Bernanke and the twelve Presidents of the regional Federal Reserve Banks make arrangements for the international banking cabal’s version of The Last Supper.  We hear through the grapevine that an “Upper Room” is available in the US Capitol Building.  You can bet Ben will be running for his helicopter before the crucifixion gets under way!  Obama and the twelve members of the Federal Open Market Committee can then do a repeat performance (but without Ben who will be long gone in his helicopter).  You can bet Obama will be headed for Air Force One for a one-way trip to Kenya, or Indonesia, or wherever the heck he really comes from!  Where is the Border Patrol and ICE when you need them to remove an illegal alien!?

Friday September 18th is the day our government will no longer guarantee money market funds. In anticipation of this event professionals have been moving funds out of these vehicles; some 15% over the past month. What the administration, and particularly the Treasury want to do is try to get those funds directly into Treasuries and into banks. From our point of view neither are safe, nor are credit unions. Those funds should move into gold and silver related assets and for those who must have currency liquidity, those funds should go into Canadian and Swiss Treasuries to profit from the continued fall in the US dollar. You must get your money out of banks, US government debt and anything connected with the US stock and bond markets. The exception being gold and silver shares. All major American banks, which hold 70% of deposits, are broke and so is the FDIC. You have no insurance unless you are willing to accept $0.30 on the dollar. You must be out of all these vehicles. The money market funds are loaded with suspect corporate debt never mind Treasury debt. We recommended Swiss and Canadian Treasuries some time ago. The dollar has fallen and all these thousands of investors have made money. Get out of money market funds. Already 1/3rd of these funds have had their NAV’s below a dollar since 7/07. They are still holding some very risky paper. Almost 40% is in CD’s of foreign banks, 10% in short-term corporate paper and over 12% in medium-term corporate paper. About 68% is in taxable non-government funds. You will see a great decline in money market fund assets as holders foolishly transfer the funds into FDIC-insured accounts, CD’s and Treasury instruments of one form or another. The only real safe place to go is to gold and silver related assets and if you must Canadian and Swiss Treasuries.

Commercial paper rose $16.1 billion; asset backed CP rose $18.1 billion versus $6.2 billion the previous week. ABCP outstanding was $501.5 billion versus $483.5 billion the prior week. Unsecured financial CP issuance fell $9.7 billion versus $6.2 billion.

Capital from foreign sources was $612 billion in 2007 and $675 billion in 2008. This year in May it was -$54.6 billion; -$57 billion in June, -$56.8 in July and -$97.5 billion in August.

Capital is leaving at an accelerating rate. This means interest rates should be raised. The Fed is monetizing and in all likelihood that will increase and that will lead to a currency crisis. The Fed has said it will ease quantitative easing, but if it does the stock and bond market will fall. If they increase there will be a currency crisis. There is now no question the dollar is being sacrificed. The idea is to allow it to fall incrementally and as slowly as possible.

We have continued to state the Amero will not replace the dollar and that it is and has been a false issue. The dollar will be replaced by another dollar in either 2010, 2011 or 2012. As we explained in early May when the dollar was 89.5 on the USDX, that this was the top. Next stop by the end of October would be 71.18, or at least by yearend. After that comes 40 to 55 and then an official devaluation and default; as all currencies and debt would be dealt with at a special meeting involving all countries.

Debt in the banking system is going to be absorbed by the Fed. Almost all major banks are bankrupt. That is why you do not want to have much money in banks and no CD’s; cash value life policies or annuities. Next year we will witness a second round of debt write offs and a crisis in the derivative market. If the Fed doesn’t monetize the debt the system will collapse, but then again there may be no Fed if HR1207 becomes law. Every problem would then lie in the lap of the Treasury. The American financial system is unsustainable and our foreign wars and occupations will come to a close in 2010 or 2011. The cost will no longer be sustainable. The US stock and bond markets will fall and you will not want to own any US government obligations. It could be that the role-played by the Fed, if the Fed is replaced, could in part be played by Goldman Sachs and JP Morgan Chase. Due to the Fed’s absorption of bad assets it could be that the Fed will self-destruct in the process of being legislatively being eliminated. Recovery of the US economy would then depend economically on tariffs on goods and services to bring manufacturing back to America.

A CBS News blogger named Declan McCullagh seized on the documents, which CEI obtained through a Freedom of Information Act request, and said: “The Obama administration has privately concluded that a cap and trade law would cost American taxpayers up to $200 billion a year, the equivalent of hiking personal income taxes by about 15 percent.” He added: “At the upper end of the administration’s estimate, the cost per American household would be an extra $1,761 a year.”

The Bank Implode-o-meter: Wells Fargo’s Commercial Portfolio is a ticking time bomb.

In order to sort through the disaster that is Wells Fargo’s commercial loan portfolio, the bank has hired help from outside experts to pour over the books… and they are shocked with what they are seeing. Not only do the bank’s outstanding commercial loans collectively exceed the property values to which they are attached, but derivative trades leftover from its acquisition of Wachovia are creating another set of problems for the already beleaguered San Francisco-based megabank, Wachovia, which Wells purchased last fall as it teetered on the brink of collapse, was so desperate to increase revenue in the last few years of its existence that it underwrote loans with shoddy standards and paid off traders to take them off their books.

According to sources currently working out these loans at Wells Fargo and confirmed by Dan Alpert of Westwood Capital, when selling tranches of commercial mortgage-backed securities below the super senior tranche, Wachovia promised to pay the buyer’s risk premium by writing credit default swap contracts against these subordinate bonds. Should the junior tranches eventually default, then the bank is on the hook.

For the past 14 years, the gap between the two measures has grown persistently, with operating earnings topping GAAP earnings by an average of $2.47 a share per quarter.

When using a 10-year trailing average of earnings to erase cyclical gyrations, operating earnings are nearly 24% higher than GAAP earnings, the highest ever.

It isn’t clear why the difference has grown so wide. One inescapable conclusion is that, since 1995, either by happy accident or accounting shenanigans, one-time losses have grown more quickly than one- time gains, elevating the operating earnings that Wall Street watches.

The investment implications are many. For one thing, two earnings measures produce two market valuations.  The S&P 500 trades at 21 times the past 10 years’ GAAP earnings and 17 times operating earnings. Neither is exactly cheap, but one is much pricier than the other.

Japan urges talks on US military base   Japan considers revision of a deal with the US to relocate a military base to be a top diplomatic priority, Tokyo’s newly appointed foreign minister has told the Financial Times, waving aside concerns that reopening the agreement could undermine the alliance between the countries.

The declaration by Katsuya Okada, a senior member of Japan’s ruling Democratic Party (DPJ), highlights the international implications of the party’s determination to set a more independent diplomatic agenda. GQ excerpts Speech-Less: Tales of a White House Survivor by ex-Bush speechwriter Matt Latimer:

We wrote speeches nearly every time the stock market flipped. Meanwhile, the White House seemed to have ceded all of its authority on economic matters to the secretive secretary of the treasury…(In the weeks that followed, Paulson changed his spending priorities two or three times. Incredibly, he’d been given the power to do with that money virtually anything he pleased. All thanks to a president who didn’t understand his proposal and a Congress that didn’t stop to think….)

Chris had just come from a secret meeting in the Oval Office, and without so much as a hello he announced: “Well, the economy is about to completely collapse.”

You mean the stock market?” I asked.

“No, I mean the entire U.S. economy,” he replied. As in, capitalism. As in, hide your money in your mattress.

The Secretary of the Treasury, Hank Paulson, had sketched out a dire scenario. And Chris said we’d have to write a speech for the president announcing his “bold” plan to deal with the crisis. (The president loved the word bold.)  The plan… Basically, it could be summed up as: Give me hundreds of billions of taxpayer dollars and then trust me to do the right thing…In some cases, in fact, Secretary Paulson wanted to pay more than the securities were likely worth in order to put more money into the markets as soon as possible. This was not how the president’s proposal had been advertised to the public or the Congress. It wasn’t that the president didn’t understand what his administration wanted to do. It was that the treasury secretary didn’t seem to know, changed his mind, had misled the president, or some combination of the three.

When White House press secretary Dana Perino was told that 77 percent of the country thought we were on the wrong track, she said what I was thinking: “Who on earth is in the other 23 percent?” I knew who they were—the same people supporting the John McCain campaign.  Me? I figured there was no way in hell any Republican would vote for that guy. John McCain, the temperamental media darling, had spent most of the past eight years running against the Republican Party and the president—Republicans on Capitol Hill and at the White House hated him. Choosing John McCain as our standard-bearer would be the height of self-delusion.

He [Bush] paused for a minute. I could see him thinking maybe he shouldn’t say it, but he couldn’t resist. “If bullshit was currency,” he said straight-faced, “Joe Biden would be a billionaire.” Everyone in the room burst out laughing.

The latest propaganda on quantitative easing and reining it in reaches us. Evidentially the G-20 meeting in Pittsburgh later this month will put together a roadmap outlining how to reverse previous stimulation of world economics. If that happens the world financial structure will collapse. They know that just as well as we do. The IMF wants the G-20 to coordinate the unwinding of these efforts. Of course, the players all know inflation is on the way and they want to make people think they are going to do something about it. Even the Fed says it is ending quantitative easing at the end of the fiscal year on 9/31/09. We know that cannot be true with the Treasury issuing $2 trillion in bonds in this coming fiscal year.

By way of comparison a year ago unemployment officially was 6.1% and today it is 9.7%. The deficit was $459 billion; this month it will be more than $1.6 trillion. Next year the estimate is another $1.5 trillion. The debt on a short-term basis is no longer $10 trillion; it is $12.3 trillion. In addition there are massive layoffs in towns, cities, counties and states; many of which are insolvent. We ask how can a stock market go from 6,600 on the Dow to 9,800 on such deplorable facts? Mandated programs such as Social Security, Medicare and Medicaid are broke and dealers cannot even get paid for the Cash for Clunkers Program. The answer is that the injection of money and credit has gone into Wall Street, banking and insurance or into financial assets and the same players are back to the same game of massive leverage they were in a year or two or three ago. They learned absolutely nothing. While this transpires the real economy sinks deeper into the mire. In order to mesmerize and propagandize the dumb American people, our President has barraged them with radio and television addresses with little lasting effect. This was capped last weekend by two million Americans, who can see through the veneer and realize our government is a disaster. Our President and Congress are vying for the lowest approval ratings. 75% of Americans want an audit and investigation of the Fed as does 282 members of the House and 23 members of the Senate. 58% of Americans do not want government health care and cap & trade. They want the deficit spending and the coddling of Wall Street, banking and insurance to stop. Any assistance should be given to the American people not to rich gamblers.

There are no more buyers of Treasuries, only the Fed that makes money up out of thin air and monetizes debt.

Americans are implored to save by buying US government bonds. Hopefully $200 billion worth out of tax returns, which will fund debt for three weeks. That, of course, reduces spending in the economy by a like amount. The $200 billion goes toward interest to pay foreign bond buyers. After inflation the public investor has nothing to show for their investment. All they are doing is fueling a bankrupt system, while Wall Street and banking gambles on with taxpayer funds.

Is it finally any wonder gold is trading over $1,000?

The London G-20 meeting is over and the big show in Pittsburgh is about to begin. We will again hear about the coordinated effort to end stimulus, which will be just more misdirection to make the public think something will really be done to end this nightmare.

These powers behind government, in order to subject people to their new world order and mass slavery, have brought to an end the most prosperous era in man’s history.

Part of this plan set in place on 8/5/71, was to remove gold backing from the American dollar, the world’s reserve currency. This allowed the Illuminists to do anything they pleased fiscally and monetarily. Once the governor of gold was removed from the monetary system all control was lost and as a result we have what we are experiencing today – planned chaos. This is why the G-20 and G-7 meet so frequently. They have to tell the world public over and over again everything will be okay, when they know it won’t be okay. Historically every time a nation went off the gold standard it headed for eventual bankruptcy. The abandonment of gold was usually followed by war, which in the long run is injurious to any economy. This could be called the imperial approach, which usually consumed each country’s gold. The US went through this after the Second World War and by 8/15/71 it had lost a part of its gold. Gold would no longer be used to settle trade. The foundation for the US monetary system was eliminated. Being that the dollar was the world’s reserve currency it destroyed the monetary base of all nations.

We are currently witnessing a political interlude in which the Fed has been cutting back its policy of quantitative easing in order to get the Chinese to stop getting rid of dollars, which China has been doing for the past eight months. During August bank credit fell at a large 9% annual pace, M2 fell 12.2% and M1 fell 6.5%. M3, the best indicator, has been falling at a 5% rate. In May, June and July bank loans have fallen at a 14% rate. The first quarter fell 2.4% and the second quarter 1.8%. Mr. Bernanke is tempting fate. Raising bank capital ratios in mid-depression could cause the Fed to easily lose control. It is exactly the wrong thing at the wrong time unless the Fed wants a deflationary depression. At this stage if banks de-leveraged there would also be a collapse. Cutting 1% a month under the circumstances is very dangerous, as not only US but also European banks are cutting lending. We have noted Europe’s policy earlier, thus, we believe the policies are secretly coordinated. If the policy is not reversed we will go into deflationary depression. If the policy is reversed all central banks will have to monetize to stay afloat, which will bring hyperinflation. No matter what, all the effect of the stimulus is in fact being neutralized.

Capacity utilization rose from 69.0% to 69.6%.

It is very disconcerting when very important statistics continue to be revised to soften the economic and political impact. As an example, July total net tick figures for flow of funds was revised in June to a loss of $56.8 billion to a minus $97.5 billion in July. June’s original number was a loss of $31.2 billion.

Foreign investors sold US assets for a 4th straight month in July, with private outflows hitting the highest since February. Net capital outflows increased to $97.5 billion in July from a revised outflow of $56.8 billion in June.

Private investors sold $131.3 billion in US assets in July, up from sales of $53.3 billion in June.

International investors bought a net $15.3 billion in July, from June’s $90.2 billion.

China’s holdings of US Treasuries rose to $800.5 billion in July from $776.4 billion in June. Japan’s rose to $724.5 from $711.8 billion in June.

Central banks bought $33.8 billion in US assets, up from sales of $3.5 billion in June.

September 30th is the date all banks worldwide must become Basel II and Basel III compliant. Those who do not will not be allowed to trade outside of their borders with any bank, nor within their borders with a Basel II or III bank. US banks have massive derivative exposure “off balance sheet”, thus they won’t qualify under Basel III. If pursued the world will find out that the US banking system is bankrupt. The world knows the Fed is the lender of last resort and its problems are beyond repair, so is it any wonder gold has broken out to new highs. This is a monumental event and if it has to be adhered too all hell will brake loose in October.

Fed Chairman Mr. Bernanke tells us the recession has probably ended. If that is the case the Fed should end quantitative easing. We know why they’ll be no end to easing and that is because there is no exit strategy. There can’t be any.

The Friday Night FDIC financial Follies saw Irwin Financial Corp.’s bank units in Kentucky and Indiana were closed by state and federal regulators, pushing the U.S. toll of seized banks this year to 94, the Federal Deposit Insurance Corp. said.

Irwin Union Bank based in Louisville was closed by the Office of Thrift Supervision and Columbus-based Irwin Union Bank and Trust Co. was shut by the Indiana Department of Financial Institutions, the FDIC said today in a statement. First Financial Bank of Hamilton, Ohio, agreed to assume $2.5 billion in deposits and take over 27 offices, the FDIC said.

The volume of mortgage applications filed last week fell a seasonally adjusted 8.6% compared with the week before, the result of a drop in both applications to refinance an existing loan as well as those to purchase a home, the Mortgage Bankers Association reported Wednesday.

The average rate on 30-year fixed-rate mortgages rose for the week ended Sept. 11, while rates on 15-year fixed-rate mortgages and one-year adjustable-rate mortgages fell, according to the MBA’s weekly survey, which covers about half of all U.S. retail residential mortgage applications. Results were adjusted for the Labor Day holiday.

The drop in applications follows a 17% week-over-week jump recorded the week of Sept.

Refinance applications fell 7.4% last week, compared with the week before; applications for mortgages to purchase a home were down a seasonally adjusted 10.3% last week, compared with the previous week, the MBA said.

The four-week moving average for all mortgages was up 2.9%. Applications were down 18.7%, compared with the same week in 2008.

Refinance applications made up a 61% share of all activity, up from 59.8% the previous week. ARMs made up 6% of all application activity, up from 5.8% the previous week. According to the survey, the 30-year fixed-rate mortgage averaged 5.08% last week, up from 5.02% the previous week. Fifteen-year fixed-rate mortgages averaged 4.41% last week, down from 4.45% the previous week. And one-year ARMs averaged 6.61%, down from 6.69% the previous week. To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.98 point, the 15-year fixed-rate mortgage required payment of an average 1.12 points, and the one-year ARM required payment of an average 0.20 point. A point is 1% of the mortgage amount, charged as prepaid interest.

Confidence among U.S. home builders rose for the third consecutive month in September despite continuing to track at a level where pessimism about future sales outweighs optimism.

The National Association of Home Builders on Wednesday said its housing market index rose one point to 19 in September, its highest level since May 2008 but still far from the point at which builder sentiment is more good than bad. The increase marks the sixth this year.

The NAHB index measures builder confidence regarding sales prospects for new, single-family homes. A reading above 50 indicates more builders view sales conditions positively than see them negatively.

The index, based on data collected through monthly surveys, hasn’t hit 50 in more than three years. It fell as low as 8 in January.

A broad measure of U.S. international transactions continued shrinking last spring as Americans in the slumping economy bought less from overseas.

The U.S. current account deficit fell to $98.8 billion during April through June, the Commerce Department said Wednesday, retreating to its lowest share of gross domestic product in 10 years. The first-quarter deficit stood at $104.5 billion, revised up from an originally reported $101.5 billion.

The current account is trade of goods and services, transfer payments, and investment income. A deficit signals a nation is investing abroad more than saving at home. The imbalance has narrowed a lot during the past year because of the recession, which meant lower purchases by the U.S. of foreign goods.

Economists surveyed by Dow Jones Newswires forecast a deficit of $92.5 billion in the second quarter. While bigger than expected, the gap marked the smallest deficit since fourth-quarter 2001.

The second-quarter deficit of $98.8 billion amounted to 2.8% of gross domestic product, which was last reported at $14.143 trillion in current dollars for the three months ended June 30. That was the lowest share since 2.8% in first-quarter 1999. The first-quarter current account gap of $104.5 billion represented 2.9% of a GDP of $14.178 trillion. GDP is the broad measure of economic activity in the U.S.

Most of the current account balance is made up of trade in goods and services. An $83.0 billion second-quarter shortfall in goods and services trade was lower than the first-quarter’s revised $92.4 billion. The first-quarter gap was initially estimated at $91.2 billion. Second-quarter imports fell to $361.6 billion from $373.4 billion. Purchases abroad of consumer goods, cars, and non-petroleum industrial supplies fell.

Exports also dropped. Second-quarter sales fell to $246.1 billion from $249.4 billion, with decreases in capital goods and consumer products.

While U.S. trade of goods was at a deficit, services trade was at a surplus. The surplus rose, to $32.5 billion from $31.6 billion in the first quarter.

Also contributing to the current-account deficit was a $32.3 billion shortfall in unilateral current transfers. Transfers are one-way payments from the U.S. to other countries and one-way payments from abroad into the U.S. The $32.3 billion shortfall is wider than a $30.3 billion deficit in the first quarter.

Examples of current transfers include U.S. government grants, foreign aid, private remittances to workers’ families abroad, and pension payments to foreign residents who once worked in a particular country.

Offsetting the overall current-account deficit was a $16.4 billion surplus of income, down from an $18.3 billion surplus in the first quarter.

The trade report showed that foreigners sold a net $22.7 billion of U.S. Treasury securities during the second quarter, after buying a net $53.7 billion in the prior three months. Foreigners sold $22.0 billion worth of U.S. corporate bonds during the second quarter, after net sales of $12.4 billion the previous quarter. They bought a net $400 million of agency bonds, after selling a net $49.7 billion in the first quarter.

As for equities, foreigners bought a net $35.8 billion of U.S. stocks, after buying $6.1 billion in the first quarter.

Foreign direct investment in the U.S. increased $26.1 billion, after rising $23.9 billion in the first quarter.

Industrial production last month rose 0.8% compared with July, the Federal Reserve said Wednesday.

Use of capacity also increased. Economists had expected industrial production to climb 0.6% in August.

The Fed report Wednesday said August use of capacity by industries grew to 69.6% from July’s 69.0%, which was revised from an originally estimated 68.5%. The 1972-2008 average was 80.9%. Overall manufacturing production climbed by 0.6% in August, the report said. Manufacturing capacity utilization rose to 66.6% from 66.1%.

Motor vehicles and parts production rose 5.5%, with motor vehicles, alone, up 11.7%. Capacity use for autos and parts was 47.4% in August and 44.8% in July. Output in the mining industry climbed by 0.5% in August after climbing 0.6% in July. Mining capacity rose to 82.2% in August from 81.7% in July.

Utilities production climbed 1.9% last month, the Fed said. It fell 1.6% in July. Utilities capacity use increased to 78.7% from 77.3% in July.

Reports on industrial production and consumer prices today showed the U.S. economy is emerging from the economic slump without spurring inflation.

Output at factories, mines and utilities climbed 0.8 percent last month, exceeding the median estimate of economists surveyed by Bloomberg News, data from the Federal Reserve in Washington showed. The Labor Department said the cost of living climbed 0.4 percent, and was down 1.5 percent from August 2008.

A Member of Congress proposes to use taxpayer money to fund the development of technology to track motorists as part of a new form of taxation. US Representative Earl Blumenauer (D-Oregon) introduced H.R. 3311 earlier this year to appropriate $154,500,000 for research and study into the transition to a per-mile vehicle tax system.

The “Road User Fee Pilot Project” would be administered by the US Treasury Department. This agency in turn would issue millions in taxpayer-backed grants to well-connected commercial manufacturers of tolling equipment to help develop the required technology. Within eighteen months of the measure’s passage, the department would file an initial report outlining the best methods for adopting the new federal transportation tax.

Oregon has successfully tested a Vehicle Miles Traveled (VMT) fee, and it is time to expand and test the VMT program across the country, Blumenauer said in a statement on the bill’s introduction. A VMT system can better assess fees based on use of our roads and bridges, as well as during times of peak congestion, than a fee based on fuel consumption. It is time to get creative and find smart ways to rebuild and renew America’s deteriorating infrastructure.

In 2006, the Oregon Department of Transportation completed its own study of how to collect revenue from motorists with a new form of tax that, like the existing fuel excise tax, imposes a greater charge on drivers the more that they drive. The pilot project’s final report summed up the need for a VMT tax.

Unfortunately, there is a growing perception among members of the public and legislators that fuel taxes have little to do with road programs and therefore should be considered just another form of taxation, the March 2006 report stated. By itself, this situation appears to be preventing any increases in fuel tax rates from being put into effect.

The money diverted from the fuel excise tax on non-road related projects must be made up for with a brand new VMT tax, the report argued. Merely indexing the gas tax to inflation or improvements in fleet gas mileage was rejected as “imprecise.” Instead, the report urged a mandate for all drivers to install GPS tracking devices that would report driving habits to roadside Radio Frequency Identification (RFID) scanning devices.

Blumenauer is a long-time advocate of bicycling and mass transit in Congress. Many of his largest campaign donors stand to benefit from his newly introduced legislation. Honeywell International, for example, is a major manufacturer RFID equipment. The company also happens to be the second biggest contributor in the current cycle to Blumenauer’s Political Action Committee (PAC), the Committee for a Livable Future. Another top-ten donor, Accenture, is a specialist in the video tolling field.

Washington is caught up in a political scandal centering on former Vice President Dick Cheney. It follows a move by the new CIA director Leon Panetta to cancel a secret plan to find and kill Al-Qaeda leaders.

He says that, while in office, Cheney ordered the agency to withhold information about the anti-terror program from Congress.

According to investigative journalist and RT contributor Wayne Madsen, “This assassination team may have targeted politicians in other countries. One name mentioned was former Pakistani Prime Minister Benazir Bhutto, who may have been a victim of this program. The other name is Jonas Savimbi, the former Angolan UNITA leader, who may have outlived his usefulness as far as Mr. Cheney is concerned.

The White House is considering extending an $8,000 tax credit for first-time home buyers, which has helped to boost sales by more than 1 million this year.

THE UNITED NATIONS Assistance Mission in Afghanistan has a mandate to encourage “free, fair, inclusive and transparent elections.’’ But according to the mission’s number-two official, former US diplomat Peter Galbraith of Cambridge, the United Nations is prepared to accede to fraudulent vote counts in last month’s presidential election. This is deeply wrong. As President Obama faces a decision on whether to send more troops to Afghanistan, the flagrant cheating in favor of President Hamid Karzai, a US ally, is a grim sign that political reconciliation is a long way off.

Galbraith favored a tough stance against fraud, and rightly so. In one polling center Karzai got 4,054 of 4,054 votes cast. In Kandahar province, where 25,000 people voted, more than 250,000 votes were recorded for Karzai. So Galbraith prodded the Afghan election commission – six of whose seven members are Karzai loyalists – to throw out transparently bogus results from about 1,000 of 6,500 polling stations and to recount ballots from as many as 5,000 others. Had the commission done so, Karzai likely would face a runoff against his main challenger, former foreign minister Abdullah Abdullah.

Galbraith returned home to New England after his boss, UN official Kai Eide of Norway, insisted that the mission allow the Afghan election commission to proceed with a pro forma recount of votes from only 10 to 15 percent of polling stations – not the sweeping exclusion of obviously bogus ballots that Galbraith sought. The foreseeable outcome of the United Nations’ capitulation will be a first-round victory for Karzai.

Eide may believe he is helping Afghans avoid political turmoil while also deflecting charges of foreign interference in Afghan affairs. But a fraudulent re-election of Karzai will only increase popular discontent with his government, exacerbate ethnic enmities, and undermine international support for Afghanistan’s fight against the Taliban.

President Obama should do what Galbraith wanted the UN mission to do: forcefully condemn Karzai’s massive fraud and press hard for a clean vote. Peace and stability will never come from an Afghan government that keeps itself in power through fraud.  [Peter and I were roommates in the mid 50s when we both served with the Army Security Agency. Bob]

James McDonald, chief executive officer of investment management firm Rockefeller & Co, committed suicide on Sunday in Massachusetts, the Wall Street Journal said, citing people familiar with the matter.

Newport Beach financier Danny Pang died early Saturday at a local hospital, according to the Orange County coroner’s office. The cause of death has not been determined and an autopsy is planned for Sunday, said Larry Esslinger, supervising deputy coroner.

Ex-CEO of Beneficial Corp. Finn H.W. Casperson was found dead in an apparent suicide behind an office building in Westerly, Rhode Island.

Police are investigating the death of the former chief fundraiser for ex-Illinois Gov. Rod Blagojevich as a “death-suicide,” an Illinois mayor said Sunday.

Philadelphia Fed business index has risen to 14.1 points in September from 4.2 in August, beating market expectations of an increase to levels around 8.0. The Euro has bounced higher.

EUR/USD rebound at 1.4695 has extended higher after Philly Fed data, and the Euro has reached levels at 1.4750, with 2009 high at 1.4767.

USD/JPY which had bounced from 90.50, reaching levels around 91.45 ahead of Philly Fed data, retreated to 91.05 minutes after figures were known and the pair trades now at 91.20.

The number of U.S. workers filing new claims for jobless benefits unexpectedly declined, according to a Labor Department report Thursday.

Meanwhile, total claims lasting more than one week increased.

Initial claims for jobless benefits fell 12,000 to 545,000 in the week ended Sept. 12, the department said in its weekly report.

Economists surveyed by Dow Jones Newswires had expected a rise of 13,000. The previous week’s level was revised from 550,000 to 557,000.

The four-week average of new claims, which aims to smooth volatility in the data, fell by 8,750 to 563,000 from the previous week’s revised figure of 571,750.

The U.S. Securities and Exchange Commission will consider banning flash trading and imposing new rules on credit-rating companies that drew fire for misreading the risks of investing in toxic mortgage securities.

Commissioners are scheduled to vote today on a proposal barring exchanges and trading platforms from letting clients see information about stock orders a fraction of a second before the market. The SEC also will consider stiffer disclosure requirements on Moody’s Investors Service, Standard & Poor’s and Fitch Ratings. The Washington meeting begins at 2:30 p.m.

The SEC is considering the ban on flash orders after lawmakers including Senator Charles Schumer questioned whether it gives some traders unfair advantages. Direct Edge Holdings LLC has used the practice to take market share from NYSE Euronext. Nasdaq OMX Group Inc. and Bats Global Markets voluntarily stopped using flash orders last month.

The SEC’s proposal would require a second vote and a later public meeting to become binding.

The agency is pursuing rules for credit-rating companies after lawmakers faulted Moody’s, S&P and Fitch for assigning mortgage bonds their highest AAA rankings and maintaining those grades after the underlying loans began defaulting in 2007.

The SEC proposals include forcing banks selling securities to disclose any ratings received while shopping among credit- rating companies, according to people familiar with the matter. Such information would tell investors whether a competing ratings firm thought there was a greater risk of default.

August housing starts increase to 0.6M.

John Williams: The Bureau of Labor Statistics (BLS) confirmed again, this morning, that its estimate of new car pricing for August was net of all rebates under the government’s cash-for-clunkers program. Based on reported rebates, auto sales and auto prices, I estimate that the BLS approach underestimated the overall August CPI by roughly 0.28%. Assuming all other new car price factors being neutral, the CPI should have been reduced by 0.28% by the rebates. Instead, the BLS reported the impact of lower auto prices reducing the seasonally-adjust CPI by just 0.06%. The likely difference is that auto dealers either used higher base prices or were able to offer smaller other discounts, in conjunction with the government’s programs, thereby boosting profit margins.

John also notes that warm weather and ‘Cash for Clunkers’ boosted August industrial production.

FDIC Strikes First Deal on Toxic Assets

Receiving a big chunk of financing from the agency, Residential Credit Solutions of Fort Worth will purchase a piece of a $1.3 billion loan portfolio from the $4.9 billion-asset Franklin Bank in Houston.

The deal for Franklin, which failed in November, is the first transaction in the government’s effort to help sell toxic loans, which was the initial idea for the $700 billion Troubled Asset Relief Program enacted in October 2008.

The deal is substantially different from what regulators envisioned. Under the Legacy Loans Program, a revamped toxic-asset plan launched in March, the FDIC was to hold auctions to help finance the sale of bad loans from open banks. Instead, the plan appears to be primarily a way to help the FDIC purge assets inherited from failed banks.

The TIC Flow data shows foreigners only bought $15.3B of US paper in July; $60.0B was expected.

For the year ending on July 31, 2009, foreigners: Bought (net) $91.01B of US stocks and $314.18B of US govies.  Foreigners sold a net $147.15B of US agency debt.

The Obama administration is shelving an Eastern European missile defense plan that has been a major irritant in relations with Russia, a U.S. ally said Thursday. The Pentagon confirmed a “major adjustment” of the system designed to guard against Iranian missiles.

Jan Fischer, the prime minister of the Czech Republic, told reporters that President Barack Obama phoned him overnight to say the U.S. “is pulling out of plans to build a missile defense radar on Czech territory.”

The missile defense system, planned under the Bush administration, was being built in the Czech Republic and Poland.

Federal Deposit Insurance Corp. Chairman Sheila Bair said Friday her agency may tap its $500 billion credit line with the U.S. Treasury to replenish its deposit insurance fund, though she appeared cautious about doing so.

We are carefully considering all options including borrowing from the Treasury, Ms. Bair said Friday after a speech in Washington.

Ms. Bair has already warned banks that they may face an assessment increase to bolster the fund.

Friday, she said there are also other little-known options available to the agency, including requiring banks to prepay assessments. The FDIC board of directors will meet at the end of this month to consider how to replenish the fund, she said. Ms. Bair appeared cautious about resorting to the Treasury credit line, saying there are different views on when it should be used. She said some believe it should be reserved for emergencies only, rather than for covering losses that are already known.

Congress acted earlier this year to allow the FDIC to borrow as much as $500 billion from the Treasury if the Treasury, the Federal Reserve and the White House believe it is warranted. Otherwise, the agency can borrow up to $100 billion.

The financial crisis has clobbered the FDIC’s deposit insurance fund, forcing the agency to impose a special assessment on the industry to rebuild the fund. Ninety-two banks have failed so far this year. The deposit insurance fund fell by $2.6 billion to $10.4 billion during the second quarter, after 24 banks went bust.

Only one in four Oklahoma public high school students can name the first President of the United States, according to a survey released today.

The survey was commissioned by the Oklahoma Council of Public Affairs in observance of Constitution Day on Thursday.

Brandon Dutcher is with the conservative think tank and said the group wanted to find out how much civic knowledge Oklahoma high school students know.

The Oklahoma City-based think tank enlisted national research firm, Strategic Vision, to access students’ basic civic knowledge.

They’re questions taken from the actual exam that you have to take to become a U.S. citizen, Dutcher said. A thousand students were given 10 questions drawn from the U.S. Citizenship and Immigration Services item bank. Candidates for U.S. citizenship must answer six questions correctly in order to become citizens.

About 92 percent of the people who take the citizenship test pass on their first try, according to immigration service data. However, Oklahoma students did not fare as well. Only about 3 percent of the students surveyed would have passed the citizenship test. Dutcher said this is not just a problem in Oklahoma. He said Arizona had similar results, which left him concerned for the entire country.

Jefferson later said that a nation can’t expect to be ignorant and free, Dutcher said. It points to a real serious problem. We’re not going to remain ignorant and free.

As we have predicted for the past six months, the FDIC will tap the Treasury, the taxpayer, to replenish reserves that banks are supposed to be replenishing. The line is for $500 billion, with the first “loan” at $100 billion. Over the next three years, 3200 to 4200 of 8400 banks will go under. The next large victim could be Wells Fargo whose portfolio is a ticking time bomb.

ALT-A mortgages are imploding as are payment option – ARMs, known as pick and pay loans. In addition 52% of foreclosures are in prime mortgage loans. Those are being negatively augmented by mortgage scams. Underwater mortgages are the driving force behind rising defaults and mounting foreclosures.

Back to Well Fargo. Outside professionals are shocked to see the bank’s outstanding commercial loans collectively exceed the property values to which they are attached. Then there are the derivative trades left over from the acquisition of Wachovia.

© Copyright Bob Chapman, International Forecaster, 2009

Why Propaganda Trumps Truth

Why Propaganda Trumps Truth
By Paul Craig Roberts
September 15, 2009 “Information Clearing House” — -An article in the journal, Sociological Inquiry, casts light on the effectiveness of propaganda.  Researchers examined why big lies succeed where little lies fail.  Governments can get away with mass deceptions, but politicians cannot get away with sexual affairs.
The researchers explain why so many Americans still believe that Saddam Hussein was behind 9/11, years after it has become obvious that Iraq had nothing to do with the event. Americans developed elaborate rationalizations based on Bush administration propaganda that alleged Iraqi involvement and became deeply attached to their beliefs.  Their emotional involvement became wrapped up in their personal identity and sense of morality.  They looked for information that supported their beliefs and avoided information that challenged them, regardless of the facts of the matter.
In Mein Kampf, Hitler explained the believability of the Big Lie as compared to the small lie: “In the simplicity of their minds, people more readily fall victims to the big lie than the small lie, since they themselves often tell small lies in little matters but would be ashamed to resort to large-scale falsehoods.  It would never come into their heads to fabricate colossal untruths, and they would not believe that others could have such impudence.  Even though the facts which prove this to be so may be brought clearly to their minds, they will still doubt and continue to think that there may be some other explanation.”
What the sociologists and Hitler are telling us is that by the time facts become clear, people are emotionally wedded to the beliefs planted by the propaganda and find it a wrenching experience to free themselves.  It is more comfortable, instead, to denounce the truth-tellers than the liars whom the truth-tellers expose.
The psychology of belief retention even when those beliefs are wrong is a pillar of social cohesion and stability.  It explains why, once change is effected, even revolutionary governments become conservative. The downside of belief retention is its prevention of the recognition of facts.  Belief retention in the Soviet Union made the system unable to adjust to economic reality, and the Soviet Union collapsed.  Today in the United States millions find it easier to chant “USA, USA, USA” than to accept facts that indicate the need for change.
The staying power of the Big Lie is the barrier through which the 9/11 Truth Movement is finding it difficult to break.  The assertion that the 9/11 Truth Movement consists of conspiracy theorists and crackpots is obviously untrue.  The leaders of the movement are highly qualified professionals, such as demolition experts, physicists, structural architects, engineers, pilots, and former high officials in the government.  Unlike their critics parroting the government’s line, they know what they are talking about.
Here is a link to a presentation by the architect, Richard Gage, to a Canadian university audience: The video of the presentation is two hours long and seems to have been edited to shorten it down to two hours.  Gage is low-key, but not a dazzling personality or a very articulate presenter. Perhaps that is because he is speaking to a university audience and takes for granted their familiarity with terms and concepts.
Those who believe the official 9/11 story and dismiss skeptics as kooks can test the validity of the sociologists’ findings and Hitler’s observation by watching the video and experiencing their reaction to evidence that challenges their beliefs. Are you able to watch the presentation without scoffing at someone who knows far more about it than you do?  What is your response when you find that you cannot defend your beliefs against the evidence presented?  Scoff some more?  Become enraged?
Another problem that the 9/11 Truth Movement faces is that few people have the education to follow the technical and scientific aspects.  The side that they believe tells them one thing; the side that they don’t believe tells them another. Most Americans have no basis to judge the relative merits of the arguments.
For example, consider the case of the Lockerbie bomber.  One piece of “evidence” that was used to convict Magrahi was a piece of circuit board from a device that allegedly contained the Semtex that exploded the airliner.  None of the people, who have very firm beliefs in Magrahi’s and Libya’s guilt and in the offense of the Scottish authorities in releasing Magrahi on allegedly humanitarian grounds, know that circuit boards of those days have very low combustion temperatures and go up in flames easily.  Semtex produces very high temperatures.  There would be nothing whatsoever left of a device that contained Semtex.  It is obvious to an expert that the piece of circuit board was planted after the event.
I have asked on several occasions and have never had an answer, which does not mean that there isn’t one, how millions of pieces of unburnt, uncharred paper can be floating over lower Manhatten from the destruction of the WTC towers when the official explanation of the destruction is fires so hot and evenly distributed that they caused the massive steel structures to weaken and fail simultaneously so that the buildings fell in free fall time just as they would if they had been brought down by controlled demolition. What is the explanation of fires so hot that steel fails but paper does not combust?
People don’t even notice the contradictions.  Recently, an international team of scientists, who studied for 18 months dust samples produced by the twin towers’ destruction collected from three separate sources, reported their finding of nano-thermite  in the dust.  The US government had scientists dependent on the US government to debunk the finding on the grounds that the authenticity of custody of the samples could not be verified.  In other words, someone had tampered with the samples and added the nano-thermite.  This is all it took to discredit the finding, despite the obvious fact that access to thermite is strictly controlled and NO ONE except the US military and possibly Israel has access to nano-thermite.
The physicist, Steven Jones, has produced overwhelming evidence that explosives were used to bring down the buildings.  His evidence is not engaged, examined, tested, and refuted.  It is simply ignored.
Dr. Jones’ experience reminds me of that of my Oxford professor, the distinguished physical chemist and philosopher, Michael Polanyi.  Polanyi was one of the 20th centuries great scientists.  At one time every section chairman of the Royal Society was a Polanyi student.  Many of his students won Nobel Prizes for their scientific work, such as Eugene Wigner at Princeton and Melvin Calvin at UC, Berkeley, and his son, John Polanyi, at the University of Toronto.
As a young man in the early years of the 20th century, Michael Polanyi discovered the explanation for chemical absorbtion. Scientific authority found the new theory too much of a challenge to existing beliefs and dismissed it.  Even when Polanyi was one of the UK’s ranking scientists, he was unable to teach his theory.  One half-century later his discovery was re-discovered by scientists at UC, Berkeley.  The discovery was hailed, but then older scientists said that it was “Polanyi’s old error.”  It turned out not to be an error.  Polanyi was asked to address scientists on this half-century failure of science to recognize the truth.  How had science, which is based on examining the evidence, gone so wrong.  Polanyi’s answer was that science is a belief system just like everything else, and that his theory was outside the belief system.
That is what we observe all around us, not just about the perfidy of Muslims and 9/11.As an economics scholar I had a very difficult time making my points about the Soviet economy, about Karl Marx’s theories, and about the supply-side impact of fiscal policy.  Today I experience readers who become enraged just because I report on someone else’s work that is outside their belief system.  Some readers think I should suppress work that is inconsistent with their beliefs and drive the author of the work into the ground.  These readers never have any comprehension of the subject.  They are simply emotionally offended.
What I find puzzling is the people I know who do not believe a word the government says about anything except 9/11.  For reasons that escape me, they believe that the government that lies to them about everything else tells them the truth about 9/11.  How can this be, I ask them.  Did the government slip up once and tell the truth?  My question does not cause them to rethink their belief in the government’s 9/11 story.  Instead, they get angry with me for doubting their intelligence or their integrity or some such hallowed trait.
The problem faced by truth is the emotional needs of people.  With 9/11 many Americans feel that they must believe their government so that they don’t feel like they are being unsupportive or unpatriotic, and they are very fearful of being called “terrorist sympathizers.”  Others on the left-wing have emotional needs to believe that peoples oppressed by the US have delivered “blowbacks.”  Some leftists think that America deserves these blowbacks and thus believe the government’s propaganda that Muslims attacked the US.
Naive people think that if the US government’s explanation of 9/11 was wrong, physicists and engineers would all speak up.  Some have (see above). However, for most physicists and engineers this would be an act of suicide. Physicists owe their careers to government grants, and their departments are critically dependent on government funding.  A physicist who speaks up essentially ends his university career.  If he is a tenured professor, to appease Washington the university would buy out his tenure as BYU did in the case of the outspoken Steven Jones.
An engineering firm that spoke out would never again be awarded a government contract.  In addition, its patriotic, flag-waving customers would regard the firm as a terrorist apologist and cease to do business with it.
In New York today there is an enormous push by 9/11 families for a real and independent investigation of the 9/11 events.  Tens of thousands of New Yorkers have provided the necessary signatures on petitions that require the state to put the proposal for an independent commission up to vote. However, the state, so far, is not obeying the law.

Why are the tens of thousands of New Yorkers who are demanding a real investigation dismissed as conspiracy theorists?  The 9/11 skeptics know far more about the events of that day than do the uninformed people who call them names.  Most of the people I know who are content with the government’s official explanation have never examined the evidence.  Yet, these no-nothings shout down those who have studied the matter closely.

There are, of course, some kooks.  I have often wondered if these kooks are intentionally ridiculous in order to discredit knowledgeable skeptics.
Another problem that the 9/11 Truth Movement faces is that their natural allies, those who oppose the Bush/Obama wars and the internet sites that the antiwar movement maintains, are fearful of being branded traitorous and anti-American.  It is hard enough to oppose a war against those the US government has successfully demonized.  Antiwar sites believe that if they permit 9/11 to be questioned, it would brand them as “terrorist sympathizers” and discredit their opposition to the war. An exception is Information Clearing House.
Antiwar sites do not realize that, by accepting the 9/11 explanation, they have undermined their own opposition to the war. Once you accept that Muslim terrorists did it, it is difficult to oppose punishing them for the event.  In recent months, important antiwar sites, such as, have had difficulty with their fundraising, with their fundraising campaigns going on far longer than previously.  They do not understand that if you grant the government its premise for war, it is impossible to oppose the war.
As far as I can tell, most Americans have far greater confidence in the government than they do in the truth. During the Great Depression the liberals with their New Deal succeeded in teaching Americans to trust the government as their protector.  This took with the left and the right.  Neither end of the political spectrum is capable of fundamental questioning of the government.  This explains the ease with which our government routinely deceives the people.
Democracy is based on the assumption that people are rational beings who factually examine arguments and are not easily manipulated. Studies are not finding this to be the case.  In my own experience in scholarship, public policy, and journalism, I have learned that everyone from professors to high school dropouts has difficulty with facts and analyses that do not fit with what they already believe.   The notion that “we are not afraid to follow the truth wherever it may lead” is an extremely romantic and idealistic notion.  I have seldom experienced open minds even in academic discourse or in the highest levels of government.  Among the public at large, the ability to follow the truth wherever it may lead is almost non-existent.
The US government’s response to 9/11, regardless of who is responsible, has altered our country forever.  Our civil liberties will never again be as safe as they were.  America’s financial capability and living standards are forever lower.  Our country’s prestige and world leadership are forever damaged.  The first decade of the 21st century has been squandered in pointless wars, and it appears the second decade will also be squandered in the same pointless and bankrupting pursuit.
The most disturbing fact of all remains:  The 9/11 event responsible for these adverse happenings has not been investigated.