THE INTERNATIONAL FORECASTER

SATURDAY, JUNE 20, 2009

062009(6)_IF
P. O. Box 510518, Punta Gorda, FL 33951-0518
An international financial, economic, political and social commentary.

Published and Edited by: Bob Chapman

NOTE: NEW E-MAIL ADDRESSES
For correspondence to Bob: bob@intforecaster.com
For subscription and renewal: info@intforecaster.com

CHECK OUT OUR WEBSITE

www.theinternationalforecaster.com
1-YEAR $159.95 U.S. Funds
US AND CANADIAN SUBSCRIBERS: Make check payable to Robert Chapman (NOT International Forecaster), and
mail to P.O. Box 510518, Punta Gorda, FL 33951-0518. Please include name, address, telephone number and e-
mail address.
Or:
We accept Visa and MasterCard charges. Provide us with your card number and expiration date. We will charge
your card US$159.95 for a one-year subscription.

You can email us in two separate emails (1- the Credit Card Number with full name, address and your
telephone number and (2- the Expiration date on the card.

NON US OR CANADIANS SUBSCRIBERS:

Due to the time that it takes for your mail to arrive to us from a foreign country, we would like for you to email us
as above the CC information in two separate emails.

Note: We publish twice a month by surface mail or twice a week by E-mail. bob@intforecaster.com
or info@intforecaster.com

RADIO APPEARANCES:
To check out all of our radio appearances click on this link below:
http://www.theinternationalforecaster.com/radio

Discount Gold & Silver Trading Co.

For the best in pricing and service for gold and silver coins, call Melody at 1-800-375-
4188. Be sure to listen to DGSTC with Bob Chapman live on Short-wave 7.415Mhz M-F
4:00PM ET, Replays Tuesday thru Friday 8pm RT 7.465Mhz
3.215 MHz M-F 11PM ET and weekly archives at discountgoldandsilvertrading.net
JOHN STADTMILLER – Republic Broadcasting Network www.republicbroadcasting.org – every Tues. at
5:00-7:00 pm EST
GOLDSEEK RADIO – Every Thursday
SAM BUSHMAN - LRT Radio http://www.libertyroundtable.com
Every first and third Monday of the month 10 am to 11 am
DALE WILLIAMS - Free West Radio Program – http://www.freewestradio.com - Every first Tuesday of
Month
JOHN BRYANT– 7 p.m. EDT - network www.firstamendmentradio.com
Dr. STAN MONTEITH - Every Monday 4 p.m. & 8 p.m. PST in month of June.
www.radioliberty.com, or to our shortwave broadcasts on WHRI at 5.745 MH weekdays from 3-5 pm and 8-
10 pm Pacific Time 5070 and 7465. Shortwave: Daily M-F 3:00 - 4:00 PM: PST 5.070 Mhz 4:00 - 5:00 PM:
PST 7.465 Mhz 8:00 - 9:00 PM: PST 5.875 & 6.110 Mhz
THE MERIA HELLER SHOW –every 2nd Tuesday of the month –
THE POWER HOUR– GCN.live.com – Every Monday in June. – Mon thru Fri 8 to 11 am EST, 7490
PAT GORMAN – Sunday June 5. 20009
Stephen Lendman – July 15, 2009
ALEX JONES - GCN.live.com -Noon on shortwave 1st hour: WWCR 9.985 and 2nd & 3rd Hour:
Every Friday – noon CST. WWCR 9975 - Here are some of the recent Alex Jones shows that Bob has
appeared on. Mon thru Fri Noon to 4 pm EST, 12160

1
http://www.youtube.com/watch?v=JIQ1Qrv_AUE
RAYELAN ALLAN – Every first and third Wednesday in June.
BUTCH PAUGH – Wednesday, June 24th, 2009 9 p.m. EST - Also on your computer on www.gcnlive.com
<http://www.gcnlive.com/> . LIVE FM STATIONS 9:00 PM EST.-88.3 FM ROTX Campbell, TX- 92.7 FM
Lexingon TN-102.9 FM in Lutz, FL-89.7 FM Nettie, WV-89.7 FM North Branch, MN-91.9 FM Kerrville, TX-
97.5 FM Dallas, TX-91.1 FM Austin, TX-97.5-91.1 FM Austin, TX-91.7 FM Fredericksburg, TX-91.7 FM
Johnson City, TX-90.1 FM Round Rock, TX-90.1 FM Austin, TX-96.3 FM Austin, TX-95.7 FM Dallas, TX-
93.3 FM Valparaiso, IN-90.7 & 88.5 FM Cosby, TN-88.3 FM Meadsville, PA-100.3 FM Kamia, ID-89.7 FM
Presque Isle ME-97.7 FM Greenville, SC-107.1 FM Oklahoma City, OK-90.1 FM Gatlinburg, TN-102.7 FM
Tampa, FL-KGGM 93.5 FM Delhi, LA LIVE AM STATIONS 9:00 EST.-WIJD 1270 AM Mobile, AL, KIOU
1480 AM Shreveport, LA,WFAM 1050 AM Augusta, GA-WELP 1360 AM Greenville, SC-WCPC 940 AM
Tupelo, MS-WROL 1340 Providence, RI-WITK 1550 AM in Scranton/Wilkesboro, PA-WNNY 1090 AM
Pensacola, FL-WARL 1320 AM Attleboro, MA-1380 WLRM AM Chattanooga, TN-WYYC 1250 AM York, PA-
WNVY 1070 AM Pensacola, FL-KGEZ 1600 AM Kalispell, MT REBROADCAST FM STATIONS- 91.9 FM
Macon, GA 7:00 AM-91.9 FM Freedom radio Jones City, GA 8:00 AM Est. REBROADCAST AM
STATIONS-KCKN AM 1020 Roswell, NM 10 PM Est.-KMET 1490 AM 11 AM Pst. - WASB 1590 AM
Brockport, NY 5-6 PM Est.- WRSB 1310 AM Canandaigua, NY 5-6 PM Est.-WBCR 1470 AM in Alcoa, TN 7-
8 AM Est.-WVOG 600 AM New Orleans, LA 5:00 PM Est.
ALAN STANG: radio show, The Sting of Stang, airs from 11 a.m. to 1 p.m. Central, M-F, via Republic
Broadcasting Network. Call him on the air at (800) 313-9443. To listen, go to republicbroadcasting.org and
click on Listen Live. If you can't listen at that time, do so via the archives. I'll be talking about the various
manifestations of the conspiracy for world government, its tactics, such as the illegal alien invasion, its
purposes and its players, from Jorge W. Boosh on down.]
ERSKINE: Thursday, - every 3rd Thursday – 2:00 pm CST GCN.live.com
Drew Raines: - Every Thursday
Those of you interested in the latest input concerning the world financial interest and what to do
during these times of financial unrest .
TODAY AND EVERY THRUSDAY we have for your pleasure Mr. Bob Chapman founder/editor of
"The International Forecaster" http://www.theinternationalforecaster.com
4pm-5pm Chicago time zone USA
listen live www.amd.elequity.com
"Clilck on "Current Show / Listen Live" this show is accessible as current show for 20 hours after
production and on demand from the archive direct link and as "Archives & on Demand" any
Thursday date is Mr. Bob Chapman's show.
*** all shows are FREE to access & download ***
2nd Hour Colorado, Al and Drew discuss the perspective of News & Events around the world and
the attacks on our Constitutional Rights to live in Liberty growing our Organic Foods and Herbs
for our safety & our health also available on 11 international phone bridges around the world
USA: 347-308-8047 -bridge code 48334.
Drew can be reached at 501-565-1833.
http://www.youtube.com/watch?v=hesYUFCe2_U
GNC-LIVE FREQUENCIES:
http://www.gcnlive.com/Schedule_Shortwave.html
KEVIN GALLAGHER & John McGowan – Every first Friday at 9 pm EST.
Bruce McDonald - The Politics of Common Sense: 6-8 p.m. CST
bruce@kickthemallout.com
Rob Johnson – on Pappas Telecommunications’ -840 KMPH. Stockton/Modesto, CA
–
June 9th and June 25th. – and July 14th and July 30th.
Lets Get Real With Reuben Torres " is an open forum where topics on politics,
immigration, health, education, and other global issues, that affect our country and the
world at large, are discussed and debated at local, national, and global levels. "Lets Get
Real With Reuben Torres "airs every Tuesday evening from 9:00 pm to 10:00 pm unless
otherwise noted. - Next appearance: June 23rd
Farren Shoaf –June 9th, 2009–The Real News Radio
.
*****

2
Radio Liberty part 1 <http://www.youtube.com/watch?v=lZRH2CtEu2k>
RBN Part 1 <http://www.youtube.com/watch?v=iZ-aBsFdJpY>
http://www.youtube.com/user/TheBobChapmanChannel
http://www.youtube.com/watch?v=cYjLAgKfLrM

For a Few Bailout's More

http://www.youtube.com/watch?v=qq8-HydyftA&feature=channel_page

Billions more needed for financial rescue

http://www.youtube.com/watch?v=3lLkq7P2BXM&feature=channel_page

http://www.clipser.com/profile.php?member=TheBobChapmanChannel

Our show with; Stephen Lendman - Easy to download the program.

Go to Republic Broadcasting.org, then archives, then login -
User ID - stephen lendman
Password - 817sl

*****
SCHEDULED ISSUES
Every Wednesday and Saturday June 2009

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

3
 What you have witnessed for the past two years is the above concept in
overdrive, especially in the real estate and automobile markets, as the supply of
money and credit has greatly contracted for all but the anointed Illuminist institutions
that are parking their profits and bailout money at interest with the Fed for fear that
they might lend it out to a zombie financial institution or business corporation and
never get it back. As their money is sidelined with the Fed to sterilize it (i.e. to keep it
from stoking inflation) the smaller fry who depend on them for their supply of financial
capital are being allowed to die of money and credit starvation so the anointed can
purchase the most valuable parts of their financial carcasses at pennies on the dollar
via bankruptcy auctions and fire-sales in a blatant attempt to eliminate their
competition and consolidate their power. This deflationary contraction in the supply of
money and credit due to the exposed loan, mortgage and derivative fraud is a strong
undertow to our economy which threatens to drag it out to sea until it runs out of air
and drowns. The Fed must therefore inflate and swim for shore, or die. And inflate
they will. We can absolutely guarantee it. Obama will go down in history as the King
of Stagflation, as he joins forces with the inimitable Gordon Brown, the King of Fire-
Sale Gold.
On a microeconomic scale, prices for specific goods and services are usually
set by supply and demand (that, of course, would be in a free economy which we no
longer have, so manipulation becomes an input for pricing specific goods and services
in our economy, and is sometimes even the main input, as with gold and silver prices).
However, the microeconomic factors which determine prices for goods and
services are by far trumped by the macroeconomic factors of supply and demand. The
supply side on a macroeconomic scale is determined by the amount of goods and
services that are produced for sale in the overall economy. The demand side on a
macroeconomic scale is the amount of money and credit available to the overall
economy with which those goods and services can be purchased, or expressed
another way, the amount of money and credit that is available to chase after those
goods and services.
This is why the price of gold and silver must eventually skyrocket. The
microeconomic supply, demand and manipulation factors which currently have sway
over gold and silver prices will eventually be trumped by the macroeconomic factors,
namely, a profligate increase in the supply of money and credit to unheard of levels
which will drive prices up across the board. The Fed cannot suppress the price of all
goods and services as it rampantly expands the supply of money and credit, and can
only influence a chosen few, such as gold and silver, which are suppressed because
they are the canaries in the coal mine. When everything else gets more expensive,
and as fiat currencies are shown to be the "worthless paper" they really are, gold and
silver will become the only real safe-havens from the resulting inflation and financial
deterioration. That will then generate a demand for precious metals that is so great, it
will drive the price of gold and silver up until they catch up with the overall supply of
money and credit, and there is nothing the Fed can do to stop it, short of pulling the
plug on money and credit and destroying our economy, along with the privately owned
Fed itself and its Illuminist cronies with it. This eventual destruction is planned to be
sure, in order to pave the way for a one world Orwellian police state. The trick for the
Illuminists is how to get out of their paper assets and convert them to real assets on
the cheap before pulling the plug on money and credit. The problem is that as they
bail out of paper, and into tangible assets, along with other foreign creditor nations
anxious to trade their "worthless paper" in for things of real value, their bailing activities
will drive inflation, and the price of gold, silver and other tangible assets, to unheard of
levels, thereby dramatically decreasing the amount of tangible assets that they can

4
absorb with their dollar reserves and their sales proceeds from the dumping of paper
assets. The US and its creditors will be competing with one another in the race to
dump dollar-denominated paper assets in exchange for precious metals, commodities,
real estate, factories and equipment and other tangible assets, as well as shares in
companies which own such assets, including shares in gold and silver producers.
The obvious answer is, of course, that they can't pull this off on the cheap, and
they will use the resulting hyperinflation to wreck the rest of the economy while they
are desperately attempting to bail out of dollar-denominated paper assets behind
everyone's backs, as part of their Big Sting Two criminal enterprise. They will attempt
to accomplish this insider trading scam in secret through unregulated dark pools of
liquidity such as Project Turquoise and Baikal, as well as through the unregulated
gambling casino which some dare to call the OTC derivatives market. They will use
their sales proceeds to buy all the real, tangible assets they can get their hands on and
leave everyone else holding a bag full of "worthless paper," aka Federal Reserve
notes, US Treasury bonds and GSE bonds. But the amount of "worthless paper" is so
great, and there are so many substantial players who will be trying to do the same
thing, that market chaos will result, and the paper assets will deteriorate, and the price
of tangible assets will simultaneously appreciate, at a rate that leaves everyone
breathless. Truly, this will be a situation where he who loses the least, and he who
buys gold and silver and their related shares early on, are the ultimate winners. The
biggest losers will be those who fail to take physical delivery of their precious metals,
such as gold and silver ETF shareholders and holders of mint certificates, who will be
thoroughly Madoff'd, as well as holders of any leveraged gold and silver futures
positions who will be wiped out by manipulations before the final run-up, thus losing all
their investment capital.
The elitist oligarchs who run America, Canada and Western Europe and their
privately owned central banks own tens of thousands of tons of gold already, and will
seek to take the proceeds from the sale of their paper assets and use them to increase
their gold holdings in an attempt to maintain monetary dominance over major players
like China and Russia, who will also attempt to add to their holdings by many
thousands of tons. There is only so much gold to go around, and when all the big
players become gold bugs themselves, gold, and also silver, will go ballistic. They
want the gold mine (literally), while you get the shaft. That is, has been, and always
will be, "The Plan." Bernanke and Geithner are now Obama's twin Tattoo's, with our
apologies to the producers of "Fantasy Island," a show which has become a perfect
metaphor for what the US economy with its so-called "Green Shoots" has become. De
plan, boss, de plan. De plan indeed.
On a technical macroeconomic basis, an economy suffers from inflation when
the amount of its total money and credit available over a period of time (the demand)
grows at a rate in excess of the rate of growth in its total value of goods and services
produced over that period of time (the supply), which valuation is based on price levels
in effect at the beginning of that period of time. In more simple terms, inflation occurs
when the rate of expansion of the supply of money and credit exceeds the rate of
expansion in the production of goods and services. In fact, in the past when we still
had a modicum of integrity in measuring economic statistics, inflation was defined as
an increase in the supply of money and credit, period. Higher prices were simply a
symptom of inflation, not a definition of inflation. The supply of money and credit was
what was inflated, not the prices of goods and services, which simply rose as a direct
outcome of the inflated supply of money and credit.

5
 Since central banks are currently in control of the supply of money and credit in
most modern economies, it is the bankster-gangsters who are, ergo, solely responsible
for any overall increases in inflation, and that goes double for any large increases.
In the US, the privately owned Fed plays the role of our central bank, and it
presides over our nefarious banking system, which is a fiat-money, debt-based,
European form of fractional reserve banking that once powered the British mercantilist
system. All major US inflationary issues and debacles can therefore be squarely
placed at the doorsteps of the Fed, and of our Treasury Department, which is little
more than a doormat for the Fed, which together with Wall Street, runs a revolving
door with the Treasury. In fact, our current Treasury Secretary is the former President
of the New York branch of the Federal Reserve Bank. So much for checks and
balances and avoidance of conflicts of interest.
We now have the Fed increasing total money and credit (M3) at a rate of 18%
while our GDP is contracting at a rate of minus 6%. That is a 24% differential, and
that means that the amount of goods and services being produced has an ever-
growing supply of money chasing after it, money and credit that is growing at a pace
that is 24% more than the pace at which goods and services are growing. Based on
all the foregoing, we'll give you three guesses as to what the outcome will be
somewhere down the road when the Fed's ever-burgeoning money blob starts chasing
after a shrinking supply of goods and services.
Inflation comes in basically three varieties. Normal inflation, which is basically
harmless, is a temporary increase in prices caused by an increase in the supply of
money and credit by the central bank which is intended to precisely anticipate the rate
of growth in the production of goods and services. You have more money and credit,
but you also have more goods and services being produced. The temporary bout of
minimal inflation caused by the anticipatory increase in the supply of money and credit
is offset or absorbed by the greater pile of goods and services that is accumulating, so
prices remain stable over time. This is obviously not an exact science, so there are
some up-ticks if the money supply grows a little too fast, but over time this can be
corrected. It is best to overshoot a little so as not to start an economic contraction,
which, if left unchecked, could lead to a recession or depression.
The next type of inflation we would characterize as elevated inflation. This is
what we have currently at a rate of about 10% and growing. This type of inflation
results where the central bank consistently grows money and credit at a rate far in
excess of the rate of growth in the production of goods and services, measured in
terms of GDP growth, over an extended period of time. What the Illuminati have done
for over 20 years now, was to have the Fed, which they privately own, raise the level of
growth in the supply of money and credit to ludicrous levels, while they simultaneously
ordered their lackeys at the BLS to lie about the rate of the resulting inflation by using
hedonics (statistical manipulations) that were intended to greatly understate inflation.
As a result, when real GDP was calculated, the GDP deflator, which is based
substantially on the official (and falsely low) rate of inflation, and which is used to
calculate real GDP, was obviously far too low. This farce resulted in higher levels of
real GDP than were warranted by the data, because inflation was not being properly
taken into account.
This is how they covered up the destruction of our economy via free trade,
globalization, off-shoring and outsourcing, along with both legal and illegal immigration
(slave labor). If the true figures were used, our real GDP would show that the rate of
growth in our economy has been virtually flat to negative since 1990. That means all
the growth in our stock markets since the early 1990's has been nothing but false
puffery, which resulted from profligate growth in the supply of money and credit, and

6
not from growth in production. For this reason, when the Dow finally bottoms, we
expect it to track back to its levels during the early 1990's, which means roughly 2,500
to 3,500. That level will destroy everything, especially the wealth of our middle class,
but the elitists themselves are going to take it on the chin. They are afraid the system
will implode before they can bail, and that they will go down with the ship also. We
wholeheartedly confirm their fears.
The Illuminati are about to learn a hard lesson: Hell hath no fury like an
American deceitfully parted from his money!!! These unfortunate souls now risk being
torn to shreds by rabid mobs using their bare hands. They have gone way beyond tar
and feathers this time, or a humane execution. A large portion of the American people
will not go into their internment camps, but will instead expend their last breath and
bullets tracking these miscreants down like dogs. They will be chased relentlessly to
the utter ends of the earth until they are systematically and utterly destroyed. You can
run, but you can't hide, from angry Americans robbed of their health and their wealth. If
they try to hide in their bunkers, Americans will get small nukes from our nuclear
arsenal and our patriotic soldiers, or from the Russians or Chinese, drill a hole down
into their lair, drop the warhead down, and detonate it in their rabbit hole. They'll go
out in a blaze of glory! Have you really thought this thing through, morons?
The final type of inflation is what we would call hyperinflation. This is the
nightmarish stuff which destroyed Germany's Weimar Republic and Zimbabwe. But
you don't get to hyperinflation by having the government simply increase spending.
You cannot attain million percent and billion percent inflation through government
spending alone, as they could never spend money at such levels under normal
circumstances to fight a run-of-the-mill recession or depression. No, to get this type of
runaway inflation, or hyperinflation, requires two ingredients. The first ingredient is
currency speculators. And the second ingredient is a central bank that is corrupt
enough, or moronic enough, to print as much money as those speculators demand,
creating a carry trade in that currency that destroys it in hyperbolic fashion. This is
what really destroyed the German and Zimbabwean currencies utterly. The
speculators are loaned currency from the central bank, which they sell short into the
international currency market for stronger currencies in anticipation of further declines.
They keep borrowing money as long as the central bank cooperates and prints
it, thus driving down the value of the currency ad nauseam. It's like being able to have
your own self-fulfilling prophecy.
In the case of Germany's Weimar Republic, and the rise of Hitler to power, we
see the shadowy hands of the US and European Illuminists all over this situation.
Hitler was more of a madman than a genius. The genius part came from the US and
European Illuminists who sponsored, supported and aided Hitler in resurrecting
Germany as a militaristic police state so we could have a second world war to take us
out of the Illuminist-created Great Depression. They told Hitler that they would destroy
the German mark to break Germany out of the clutches of the admittedly onerous and
disgusting Treaty of Versailles, which required Germany to make reparations to Allied
nations in amounts that were impossible for a country destroyed in a world war to
manage. Germany would pay their reparations with increasingly debauched German
marks. (Does this not sound familiar with what the Fed and US Treasury are up to as
they debauch the dollar in a stealth default on their debts to international creditors?
Looks like they are taking another page out of Hitler's Nazi playbook, which
they originally wrote for Hitler). The Illuminists, on their part, had their currency
speculators keep borrowing from Germany's recently privatized central bank, which
was more than happy to print the German mark out of existence as the currency
speculators did their dirty work. This then created the financial and social chaos,

7
which brought Hitler to power, and was the perfect excuse to set up the Jews, with
their many banking connections, as scapegoats.
But the Illuminists also did something very, very interesting. Once Hitler came
to power, they told Hitler to have his fledgling Nazi government issue a new German
currency that was only good inside Germany so it could not be manipulated by outside
speculation, and told him to print only as much currency as would be needed to cover
the anticipated production that would occur as Germany underwent reconstruction and
remilitarization. This was their idea as Hitler was hardly that well versed in economics
to come up with it on his own. Hitler of course had his own German advisors, but we
can assure you that they got most of their ideas from the Illuminist Puppet Masters,
who were experts on currency manipulations and on monetary history. In fact, it was
the Puppet Masters and their predecessors who in fact made much of monetary
history. This move, of course, worked, as the Illuminists knew it would, and soon Nazi
Germany, with all kinds of financial and political support from the Illuminists, was ready
to start its conquest, thus generating trillions in profits for the US military-industrial
complex, and providing an escape from a terrible depression.
We can assure you that the war-to-escape-depression idea will be used again
shortly. We wonder who the next Hitler will be who will take us into World War III to
put an end to the Much Greater Depression that is currently underway and getting
worse by the minute. Stay tuned. You haven't seen anything yet.
The second part of the above dissertation will appear in the next issue.
*****
From Harry Schultz:
Dear Bob:
Bob Chapman’s Int’l Forecaster newsletter revealed (5/20) this startling intelligence
(from within US State Dept & embassies): ”Some US embassies worldwide are being
advised to purchase massive amounts of local currencies; enough to last them a year.
Some embassies are being sent enormous amounts of US cash to purchase
currencies from those govts, quietly. But not £’s. Inside the State Dept there is a sense
of sadness & foreboding that ‘something’ is about to happen, unknown re a date—just
that within 180 days, but could be 120-150 days.” Bob quotes another source that
“Panasonic has told their people to be back in Japan by Sept 09.”
(bob@intforecaster.com <mailto:bob@intforecaster.com> )

Harry Schultz, dean of newsletter writers, has quoted the Chapman letter of May 30
regarding US embassies being sent large amounts of cash with which to buy local
currencies, to last them a year. Here is Harry’s remarkable take on the situation:
“My HSL suspicion is that the elite plan another FDR style “bank holiday” of indefinite
length, perhaps very soon, to let the insiders sort-out the bank mess which is getting
more out of their control every day. Insiders want/need to impose new bank rules.
Widespread nationalization could result, already under way. It could also lead to a
formal US$ devaluation, as FDR did by revaluing gold (& then confiscating it). But
devalue against what? The euro? Doubtful. Gold? Maybe. Or vs. the IMF basket of
currencies (which seems more likely)—& much in the news recently. Any kind of bank
holiday will push the US$ lower, which may be a bonus benefit to their ongoing
scenario of letting the $ fall. Such a fall would get the devaluation they want without
having to declare it. In sum, the insiders want more bank & system control, fewer
banks & a lower US$. A bank holiday would suit all their needs. Obviously, U can’t
open safeboxes if the banks are closed, so plan accordingly. All this is speculation, but
we have to go with what we’ve got, scraps of info that point to certain possibilities. In
any case such a closure will, IMO, come sooner or later, as the worst of the embedded

8
derivatives are still to be faced. We are years away from solving them because the
controllers don’t want to; their fingerprints are all over them. PS: during the FDR
bank holiday, thousands of banks never reopened; it was a face-saving way of shutting
them down. I would guess the same would occur today; thousands have little or no net
value, loaded with debt, bad mortgages. ••• PPS: A Bob Chapman subscriber reported
overhearing 2 FEMA jacketed men talking to a police chief in Calif. They wanted to
federalize the police across the US. They (govt) would be closing banks in late Aug,
early Sept & that it will get ugly.” Prepare for worst case, as any good Boy or Girl Scout
would do. J”
If U want to get Harry’s invaluable interpretation of everything-that-matters, send an
order for the Int’l Harry Schultz Letter to: info@hsletter.com
<mailto:info@hsletter.com> or write FERC, PO Box 622, CH-1001 Lausanne,
Switzerland. Or via website: www.hsletter.com <http://www.hsletter.com> . 8-month
trial $279 (€231), But for Chapman subscribers, Harry offers a $59 discount, offer good
for til end July 09. - Toll free phone US only: (1) (866) 725 3724

*****
Whether people realize it or not we started an inflationary depression in
February. You wouldn’t know that reading the mainstream media, or by listening to
criminal enterprises known as Wall Street and government. The US dollar is on its
irreversible path to losing its status as world reserve currency, as we enter the worst
depression in our nation’s history. Americans may be unaware of it, but we know as do
many foreigners that America is bankrupt. This knowledge is going to continue to
inhibit the purchase of US government debt and will induce dollar holders to sell
current dollar holdings. These countries have their own problems and they do not think
it is their responsibility to fund US deficits.
The BRIC nations led by China and Russia are going to use each other’s
currency in trade as much as possible and they want a new international trading unit or
currency. The Russians said they want gold to be weighted in SDR’s, Special Drawing
Rights, to gain more balance within the unit.
We are seeing the beginnings finally of foreigners hesitating to continue to
accumulate dollars and to fund the profligate lifestyle of Americans and America’s
imperial outreach. They obviously are serious because the US asked to attend the
meeting of the Shanghai Cooperation Organization and were refused. A rebuttal,
something US elitists have not experienced in some time. This was a very important
meeting for the six nation participants and refusing entry to the US was certainly a
political and diplomatic slap in the face, something that was completely ignored by the
controlled media.
The problem America has is that the conclusions of the BRIC nations will put
major continual downward pressure on the dollar and short of world war there is little
they can do about it. These nations are now determined to replace the dollar as the
world’s reserve currency. That means the dollar is headed lower and that means
inflation will rise as the cost of imported goods rises. It also means all things traded or
denominated in dollars will be more expensive – inflated. Over the last ten years we’ve
had just the opposite, cheap foreign goods keeping down US inflation. It is going to
prove very expensive for Americans.
The wild creation of money and credit will most certainly bring on hyperinflation.
It will be far too copious and strong over the next few years for deflation to take over,
but ultimately deflation will win out.
The world banking system, as we know it is about to slide into history, as did
the Oracle at Delphi, which so long ago played central bank and eventually brought

9
tragedy to Greece. The days of our current elitists are numbered. We are not children
to be simply dealt with. We may think our republic is democratically free, but it isn’t. It
is controlled by a privately owned Federal Reserve just as England is with the Bank of
England.
The next move by BRIC nations will be to extend their influence throughout
Asia and bring an end to American and British meddling in the region. This will be
done in part by not recycling dollars – or in fact refusing to use them. No more dollar
losses and no more funding for America’s military machine. It means the end of
American dominance. There now will be a race to dump dollars.
Special Drawing Rights, SDRs, are not the answer. They are simply another
fiat currency. The Russians in part have it right, there must be a gold component and
there will be if the SDRs are to be used. A better idea for an international trade unit is a
gold backed basket of the ten top currencies, which would include the dollar. Until this
happens dollar owners will continue to dump dollars by buying commodities, factories,
land, etc., worldwide. America’s refusal to allow investment into certain areas, such as
industries they consider to be off limits, due to security concerns will lead to an ever
greater flow of dollars back to the US bringing inflation and eventually currency
controls. Dollars will be allowed to leave but not enter the US. This will as well tighten
government control over the wealth and finances of American citizens. If you had
planned on leaving the US you had best do it now. The opportunity may not be there
for you in the future.
The fall of the dollar will mean a whole new way of life for Americans. We
compare it to living during the 1940s and 1950s. That will last for a few years and then
we’ll graduate into living as we did in the 1930s. If we are lucky there will not be a
revolution. All markets will eventually collapse taking all investments down 60% to 95%
from their 2006 highs. The only exception will be gold and silver assets, which will hold
their value and appreciate.
Military spending will fade and with that the end of US military dominance. It
simply won’t be able to be financed. The days of printing money and issuing credit with
abandon are coming to a close. The cycle is being ended.
This will create distrust and confusion with higher unemployment, which could
lead to social instability. The very rich elitists will control 80% of the country’s wealth,
while the nation suffers 35% or more unemployment. Such a situation harbors the
seeds of rebellion.
We cannot spend our way out of our current dilemma. It is impossible. Those
who deliberately created this situation know that. It was the price they were willing to
pay to bring America and Europe to their knees economically and financially to force
their populations to accept one-world government. This is not going to work and it will
bring disaster on many levels to our planet.
Saving Wall Street and banking isn’t going to work. They are insolvent. The losses
have to be absorbed sooner or later. The later it is the worse it will be. If you look at
history you will find this has happened over and over again. The result is fascist
dictatorial government, accompanied by a big war or a number of smaller wars. This is
how the elites hope to again extricate themselves and still hold power. We have news
for them. This time it is going to be different. A police state won’t work on Americans.
They will die rather than to submit, and the Illuminists are about to find that out.
General Motors Corp. said it has reversed decisions to end franchise
agreements with 60 dealers, as the largest US automaker scales back its retail
network under bankruptcy reorganization.

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

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

12
 Yet it's still pretty bad. Before the most recent government report on demand,
gasoline supplied to the market was down 3 percent, and prices were still cheaper
than they were three years ago at this point in June.
Pump prices added a half cent overnight to a new national average of $2.679 a
gallon, according to auto club AAA, Wright Express and Oil Price Information Service.
A gallon of regular gas has jumped nearly 37 cents in a month.
Mid-Atlantic factory activity booked its smallest retreat since last September in
June, raising hopes for the economic recovery.
The Federal Reserve Bank of Philadelphia reported Thursday that its index of
general business activity for the manufacturing sector came in at -2.2 in June,
compared with -22.6 in May.
That reading was the least bad since the fall, when it tilted very near the zero
mark that represents the break even point between contraction and expansion.
June's reading was well above the -18.0 expected by economists. The
Philadelphia Fed report bears particular importance for financial markets and
economists, who see it as a proxy and leading indicator for national economic activity.
As such, the report helps raise hopes that the manufacturing sector is
emerging from the recession, and increases chances that a recovery will take place
later this year, as many policy makers and analysts expect.
Michael Trebing, an economist with the bank, offered a note of caution, saying
the report "showed continued weakening in manufacturing." But he added, "the
declines were much less in evidence this month."
Meanwhile, the report noted "most of the survey's broad indicators of future
activity showed continued improvement, suggesting that the region's manufacturing
executives are becoming more optimistic that a recovery in business will occur over
the next six months."
The report's components were a bit of a mixed bag. On the positive side, the
June shipments index stood at 2.1, compared with -19.0, while the new orders index
was -4.8, after May's -25.9.
The report also showed inflation pressures as waning, which is a sign of
improved activity and higher energy costs. The prices paid index hit -13.0, compared
with -22.8, while the price received index was -16.6, versus -33.8 in May.
But hiring continued to contract, with the employment index at -21.8. It stood at
-26.8 in May.
The May index of leading indicators offered more signs that the U.S. economy
has moved closer to recovery.
The leading index jumped 1.2% last month, after April's index increase was
revised to 1.1%, the Conference Board reported Thursday. April's rise was originally
reported as 1.0%.
Economists surveyed by Dow Jones Newswires had expected an increase of
1.0% in the May index.
"The recession is losing steam. Confidence is rebuilding and financial market
volatility is abating," said Ken Goldstein, economist at the Board. But he warned that
"employment will take longer to turn around."
Vendor performance, interest-rate spread, real money supply, stock prices,
consumer expectations and building permits made positive contributions to the May
index. Weekly hours worked and new jobless claims were negative contributors.
The coincident index fell 0.2% in May, after a revised drop of 0.3% in April.
April's decline was first reported as 0.2%.
The lagging index dropped 0.2% in May, after a revised 0.8% decline in the
prior month. The April drop was originally reported as 0.5%.

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

14
Additionally, Standard & Poor's reassessed the relative creditworthiness of many
institutions based on their ability to deal with the increased risks during this transition
period and inferred that some firms may be better able to weather the risks ahead than
others.
However, the agency stated that it could foresee raising ratings in the long term
if lower earnings and reduced risk go along with stronger risk-adjusted capital and
effective governance.
The other banks on the list include Associated Banc Corp. (ASBC), Astoria
Financial Corp. (AF), Comerica Inc. (CMA), Fifth Third Bancorp (FITB), M&T Bank
Corp. (MTB), PNC Financial Services Group (PNC), Regions Financial Corp. (RF),
Susquehanna Bancshares Inc. (SUSQ), Valley National Bancorp (VLY), Webster
Financial Corp.(WBS), Wilmington Trust Corp (WL), and First National Bank of
Omaha.
Regional banks cut to junk status included Carolina First Bank, Citizens
Republic Bancorp Inc. (CRBC), Huntington Bancshares Inc. (HBAN), Synovus
Financial Corp. (SNV), and Whitney Holding Corp. (WTNY).
The Senate today overwhelmingly passed a bill that would fund military
operations in Iraq and Afghanistan through Sept. 30, giving congressional backing to
President Obama's plan to increase troops and resources for the war in Afghanistan.
The 91-5 vote sends the bill to President Obama for signing.
The $105.9 billion bill also includes $7.7 billion to prepare for a potential
outbreak of a pandemic flu, an increased U.S. contribution to the International
Monetary Fund and $1 billion to start the "cash for clunkers" program that will give
Americans vouchers of up to $4,500 to turn in their old cars and purchase more fuel-
efficient vehicles.
Payrolls fell in most of the U.S. during May as companies squeezed by the
recession kept unloading workers, but fewer states lost jobs than in April.
Non-farm payroll employment decreased in 39 states and increased in 11
states and the District of Columbia last month, the Labor Department said Friday. In its
state unemployment breakdown for April, Labor said non-farm payrolls fell in 44 states
and the District of Columbia, rising in six states.
The moderation in the drop echoes other data showing the economy is not as
bad as it had been - but it still isn't good.
Two weeks ago the Labor Department said non-farm payrolls shrank by
345,000 jobs in the U.S. during May - about half the average monthly decline for the
prior six months. In April, payrolls shed 504,000 jobs. Since the recession began in
December 2007, 6 million jobs have vanished.
The jobless rate rose in May to 9.4% from 8.9% in April.
California lost the most jobs of all states in May, at 68,900. Florida dropped
61,000, with Texas losing 24,700 and Michigan down 23,900, Labor said.
Michigan, the heart of the automobile industry, had the highest jobless rate in
May, at 14.1%. Oregon had a jobless rate of 12.4% and Rhode Island and South
Carolina each had 12.1%.
The Federal Reserve's latest weekly money supply report Thursday shows
seasonally adjusted M1 rose by $34.3 billion to $1.631 trillion, while M2 rose $4.4
billion to $8.354 trillion.
The figures are preliminary estimates for the week extending through June 8
and are subject to revisions.
The Fed expanded its balance sheet by $29.406B in the latest week. The Fed
monetized $42.766B of securities. $15.5B of swaps were disgorged. If Congress
intends to investigate Sammy Sosa for lying about steroids, Bernanke should be

15
investigated for lying about monetizing debt and threatening Lewis.
The real reason for Thursday’s collapse in bonds is the Treasury announced
that it would auction $104B of debt next week - $40B of 2s, $ 37B of 5s and $ 27B of
7s. Plus $61B of T-Bills totals $165B!
President Obama's plan to revamp financial regulations triggered immediate
criticism Wednesday from both the political left and right over the expanded policing
authorities given to the Federal Reserve while business groups grumbled about a
powerful new agency charged with protecting consumers against abusive lending.
Lawmakers picked apart virtually every element of the Obama administration's
regulatory reform plan during a hearing Thursday, but there was one question that
dominated: Would it really prevent another financial crisis?
Senators were astounded that there were no reforms for Fannie and Freddie.
That’s because Congress intends for GSEs to provide unwarranted benefits to certain
constituents.
President Obama signed the American Recovery and Reinvestment Act
(ARRA) into law, thus launching a bold new initiative to modernize state
unemployment insurance programs with the help of $7 billion in federal incentive
funds. That is because the ARRA covered 100 percent of the costs associated with the
13- to 20-week program of Extended Benefits, which is normally paid for 50 percent by
the states.
Government figures, in fact, show the proportion of recipients who used up their
jobless benefits averaged 49 percent in May, a record.
A market manipulation vehicle will be investigated. The FT: SEC to turn
spotlight on ‘dark pools’:
The increasingly popular trading venues known as “dark pools’’ are to come
under fresh scrutiny from regulators concerned about the emerging risks they pose to
the wider markets, the head of the US Securities and Exchange Commission said on
Thursday.
Mary Schapiro, SEC chairwoman, has asked her staff to investigate the impact
of automated “dark pools”, off-exchange trading venues that do not display quotes to
the public. Investorscan anonymously trade large blocks of shares on dark pools,
leading to concerns about their impact on public prices and markets.
New York Fed President William Dudley set expectations low, saying in a June
4 speech that he didn’t foresee any activity because the securitization process “takes
quite a while to ramp up.” He asked his audience not to “take that as a mark of the
success of the CMBS effort, please.”
The stakes of TALF aid for CMBS extend beyond the markets for office and retail
space. Worsening problems in the commercial mortgage market may accelerate the
drop in property values, increase defaults and weaken banks’ finances, Dudley said in
the speech.
Among asset classes targeted by the Fed through the TALF, “commercial real
estate is going to be the toughest to crack as its financing is very long-term in nature,”
Rupkey said.
Personal Income Tax Revenues Portend Deepening Trouble for Many States
Preliminary data show deep declines in overall personal income tax revenues in nearly
every reporting state. These declines signal continued difficult fiscal challenges ahead,
particularly for the states that rely most heavily on personal income taxes…
Looking at the most recent recession years, personal income tax revenue
declined by only 1.4 percent in April-June 1993 and by a dramatic 22.3 percent in
April-June 2002. Given the severe declines in April 2009 personal income tax
collections, we expect that the April-June 2009 quarter will be even more dramatically

16
negative than the April-June 2002 quarter.
Total personal income tax collections in January-April 2009 were 26 percent, or
about $28.8 billion below the level of a year ago in states for which we have data. In
April 2009 alone (April being the month when many states receive the bulk of their
balance due or final payments), personal income tax receipts
fell by 36.5 percent, or $18.2 billion.
They are all fraudulent, it’s obvious. We don’t even have paper securities
outstanding for that value,’’ said Mckayla Braden, senior adviser for public affairs at the
Bureau of Public Debt at the US Treasury department. “This type of scam has been
going on for years.
From a fundamental and technical viewpoint the stock market and bond
markets are under pressure. They both should not be able to launch any kind of a
sustainable rally from present levels. From here on out markets will tend to be boring
and cautious.
The Fed on Wednesday bought $7 billion of bills and notes and monetized
$6.45 billion of 3 and 4-year bills.
There is gloom and doom at the highest levels of the banking industry because
collateral values keep deteriorating and there is no end in sight. Few banks have as
yet writing off their holdings of HELOC paper. They are faced with the next leg down
as prime mortgage defaults hit the market.
Commercial paper outstanding fell $27.7 billion in the week ended 6/17 versus
$14.8 billion the previous week.
Asset backed CP outstanding fell $22.2 billion versus a $32.5 billion.
CP outstanding was $1.202 trillion versus $1.230 trillion. ABCP outstanding
was $502.7 billion versus $524.9 billion.
Unsecured CP issuance fell $100 million to $15.9 billion.
This is the lowest level of CP in 8-12/ years.
The preliminary take on the sweeping new Obama rules for the nation’s
financial system to be are an insult to the American people - as they say the best
defense is a strong offense. A preeminent move in psychological warfare is to heap
more responsibility on the shoulders of the Fed. This is so Congress won’t pass
legislation to investigate and audit the Fed. It is also to prevent the real culprits from
going to jail. The excuse is the system failed and needs to be overhauled. It was those
who created the conditions for unbridled lending, which launched the housing bubble
and the securitization that followed. All the rules were broken and the Fed led the
pack. No new rules or regulations are needed. All those who broke the rules have to
be tried, sentenced and jailed and their wealth taken from them. All those who aided
them at the SEC and CFTC should be jailed as well. The overhaul is pure misdirection.
The Fed orchestrated all this and they want to put them in charge. These changes put
the fed in charge of the country. They are leading a financial dictatorship unless we
can make HR 1207 and S 604 the law. Once even Congress understands what
they are doing, even they will dump the Fed.
California’s unemployment rate jumped from 11.0% to 11.4% in May.
In the bond market, the Treasuries are close to the trend line that began from
the bear market lows in 1981. Further weakness will break that line and we believe
that will happen.
As HR 1207 appears to be ready to pass – 258 co-sponsors – to investigate
the Fed. The pros on Wall Street are quaking in their boots. If HR 1207 is passed and
not vetoed the issue of unconstitionaility will surface.
The Fed could soon be exposed as the fraud it really is. As we said earlier the
new responsibilities of the Fed is a psy-op cover, an offensivecover.

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

18
 *****
AIG’s ex-CEO had private jet fly stock to Bermuda: As you can see, there are two
sets of rules for offshore banking. One for the Illuminists and one for the rest of the
citizens.
http://economictimes.indiatimes.com/articleshow/4669572.cms?prtpage=1
*****

China Commodities Undercut USDollar

http://news.goldseek.com/GoldenJackass/1245341616.php
*****

Obama Lays Out ‘Sweeping Overhaul’ of Financial Rules

http://www.bloomberg.com/apps/news?pid=20601103&sid=aUfFlXRCsp9U
*****
*****
6/18/09 Fed Reserve Racketeers DIVE FOR COVER - HR 1207 Ron Paul’s Audit
the Fed bill is now up to 258 cosponsors
*****

Rep. Alan Grayson's (D-FL) letter to support HR 1207 "Audit the Fed"
http://action.firedoglake.com/page/content/graysonletter/

*****
From a Fellow subscriber:
Adam Kokesh speech
http://www.youtube.com/watch?v=PbOp_9VfR6o
http://www.youtube.com/watch?v=V_gcwVcqCcc&NR=1
<http://www.youtube.com/watch?v=V_gcwVcqCcc&amp;NR=1>

THIS DUDE GETS IT!!! WHEN ARE WE GOING TO BE AWAKENED TO OUR DUTY
FOR COUNTRY...??? HOW MUCH TYRANNY MUST WE ENDURE??? HOW
MANY FREEDOMS MUST BE LOST BEFORE WE STAND UP AND 'ENGAGE IN
PEACEFUL REVOLUTION'???

AWAKE O' SLEEPING GIANT!!! STOP BEING COMPLACENT...STAND FOR

LIBERTY...GIVE ME LIBERTY, OR GIVE ME DEATH!

*****
N.S.A.'s Pinwale Examines Large Volumes of US E-mail Messages Without Court
Warrants <http://www.nytimes.com/2009/06/17/us/17nsa.html> --E-Mail
Surveillance Renews Concerns in Congress 17 Jun 2009 The National Security
Agency is facing renewed scrutiny over the extent of its domestic surveillance
program, with critics in Congress saying its recent intercepts of the private telephone
calls and e-mail messages of Americans are broader than previously acknowledged,
current and former officials said. A former N.S.A. analyst who, in a series of interviews,
described being trained in 2005 for a program [Pinwale
<http://www.globalsecurity.org/intell/systems/pinwale.htm> ] in which the agency
routinely examined large volumes of Americans’ e-mail messages without court
warrants. Two intelligence officials confirmed that the program was still in

19
operation.

Audit Finds U.S. Overpaid Blackwater By $55 Million

<http://online.wsj.com/article/SB124511068419617063.html> 17 Jun 2009 A
government audit found that the State Department overpaid the contract-security firm
once known as Blackwater Worldwide by tens of millions of dollars because the
company failed to properly staff its teams in Iraq. The report said the State Department
should have withheld at least $55 million in payments to the company because of the
shortfalls.
*****
Washington is unable to call all the shots
By Michael Hudson
http://www.ft.com/cms/s/0/16e9f3e8-5944-11de-80b3-00144feabdc0.html
*****
Witness says one guard shot another at Holo. Museum,von Brunn
http://www.newsnet14.com/2009/06/witness-says-one-guard-shot-another-at-holo-
museumvon-brunn/
*****
US military teaches 'protesters' are 'low-level terrorists'
http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=101473
*****
US planning Velvet Revolution in Iran?
http://www.prisonplanet.com/us-planning-velvet-revolution-in-iran.html
*****
The McCollum Memo: The Smoking Gun of Pearl Harbor
http://whatreallyhappened.com/WRHARTICLES/McCollum/index.html?q=McCollu
m/index.html
*****
THE TOWER OF BASEL: DO WE REALLY WANT THE BANK FOR
INTERNATIONAL SETTLEMENTS ISSUING OUR GLOBAL CURRENCY?
Ellen Brown, April 20th, 2009
http://www.webofdebt.com/articles/basel.php
*****

No More Murderous Rip-Offs

by Ron Paul
http://www.lewrockwell.com/paul/paul540.html
*****
Ron Paul Discusses HR1207 and the $ on Gold Seek Radio (6/10/09)
June 17, 2009 – 8:28 am
http://revolutionarypolitics.com/?p=1226
*****

Obama's AmeriCrooks and Cronies Scandal—The Chicago Way Comes To

Washington
http://www.vdare.com/asp/printPage.asp?url=http://www.vdare.com/malkin/0906
16_americrooks.htm
*****
Obama's Blueprint for Reform Concentrates Still More Power in Hands of the Fed
http://www.marketoracle.co.uk/Article11376.html
*****

20
Hyperinflation: The Story of 9 Failed Currencies
http://www.mint.com/blog/finance-core/hyperinflation-the-story-of-9-failed-currencies/

*****
A Tale of Two Depressions
http://www.voxeu.org/index.php?q=node/3421
*****
It Comes Down to This!
Jim Kirwan
6-18-9
http://www.rense.com/general86/dwnto.htm
*****

Obama Regulatory Reform Plan Officially Establishes Banking Dictatorship In

United States
http://www.prisonplanet.com/obama-regulatory-reform-plan-officially-establishes-
banking-dictatorship-in-united-states.html/print/
*****
Iran's Election and US - Iranian Relations
by Stephen Lendman
http://sjlendman.blogspot.com/

*****
Arizona officers fight concealed gun proposal
http://www.azcentral.com/news/articles/2009/06/19/20090619guns0619.html?sour
ce=nletter-news
*****

The Waning Power of Truth

http://www.opednews.com/articles/The-Waning-Power-of-Truth-by-Paul-Craig-
Roberts-090618-235.html
*****

Retailers Head for Exits in Detroit

http://investment-blog.net/retailers-head-for-exits-in-detroit-by-andrew-
grossman/
*****
JOURNALIST THREATENED FOR EXPOSING COVER-UP

By Cliff Kincaid
June 18, 2009 NewsWithViews.com
http://www.newswithviews.com/Kincaid/cliff321.htm
*****

From a Fellow Subscriber:

Good Morning Judy & Bob,
Here is something I did unexpectedly this morning.
My husband sent me an article from the WSJ - The White House Fires a Watchdog -
http://online.wsj.com/article/SB124511811033017539.html

21
referring to the incident with Gerald Walpin and Obama firing him. I was so ticked-off I
sent him a letter. Which by the way all I was going to do is check my email for any
clients letters and that was it. These people are getting away with fraud along with our
tax dollars. Sorry I know I am preaching to the choir. It seems to me if there is anyone
left in Washington to defend the rights of the Citizenry of this great nation, they are
being axed. The letter below was sent off to Obama within the last half hour. Have a
great & Blessed day.
As Always With Loving & Caring & Healing Hands,

Dear Mr Obama,
How dare you fire a person who is looking out for the taxpayers money. Gerald Walpin,
Inspector General of the Corporation For National and Community Service was trying
to save us taxpayers $850,000.00 and Mr. Walpin gets axed because your friends did
not like it very much. Don't you think it is about time you step up to the plate and
acknowledge the errors of your ways and let Mr. Gerald Walpin do his job. Now,
because Mr. Gerald Walpin was left out of the settlement proceedings, Mr. Brown
himself settled with St. HOPE, Mr. Johnson and his assistant, an agreement that
required St. HOPE (with a financial assist from Mr. Johnson) to repay approximately
half of the grant, and also required Mr. Johnson to take an online course about
bookkeeping. How pathetic is that I may add. The taxpayer gets shafted once again.
Mr Brown (U.S. Attorney General) should be the one to be fired not Mr. Walpin.
Apparently Mr. Walpin was doing his job and Mr. Brown was not and according to our
Constitution, Mr. Brown should be arrested for TREASON. Mr. Obama it is about time
you started doing the right things & giving people (the taxpayers) back their monies
and not what you think "We The People" deserve.

Sincerely,
*****
AKTI Opposes U.S. Customs' attempt to classify assisted-opening
knives and all one-hand opening knives as switchblades.
http://www.akti.org/legislation/uscustoms.html
*****

From a Fellow Subscriber:

Hi Bob,
I kind of feel like you are the wise uncle I should have had in my life. I would even go
out and play golf with you.
I just thought I would give you some news from home, so to speak. The inflation has
heated up here in Northern Ohio - the rust belt. My county has 22.5% unemployment
in the summer when employment usually picks up due to tourism. I have not had a
full-time job in 2 years. I worked for 2 colleges in 2001. Then Governor Taft cut
funding to higher education and eliminated my positions at 2 colleges. After that I took
a position with an (third party) auto parts inspection company.
So the inflation has been hitting here since last summer with the increase in gas prices
and a bit slower before that. On many items the price has increased or the quantity
has decreased. Or the price has increased and the quantity has decreased. Some
examples: real wholegrain bread $1.89 a loaf in Spring 2008, now $1.99 + on sale or
$2.69 to $3.29 in June of 2009; cauliflower $.99 a head in Spring 2008, now $2.49;
pasta per 2# box $.89, now $1.79; Old Milwaukee Beer $2.59 a 6 pack of pints in
Summer 2007, $1.99 on sale, $3.79 through Summer of 2008 and now $4.29 Summer

22
of 2009 - no more sales; Piasano wine per gallon $9.99 Spring 2008, now 13.99
Summer 2009; Amish Chicken per pound of breasts with bones $3.49 Spring 2008,
now $5.49; 2# can of peanuts $3.49, now $4.79;
Botan Rice $8.79 per 20# bag Spring 2008, now $18.84 (Walmart); Chicken Soup
(Kroger 26 oz. concentrate) $1.00 a can on Sale Spring 2008 / (Walmart brand) $1.00
normal price
Spring 2008, now (Kroger) $1.79 and (Walmart) $1.39 (average). It is really going up
faster this summer. Potatoes used to be like $2.00 for 10# and now are $2.49 per 5#
or higher depending on the store you buy them in. Even our local farm markets have
increased prices quite a lot this summer.
Then there are the strange things with the weather radar on NOAA and Weather
Underground. Last night I looked at the radar to see if we had any rain coming (I have
a large veggie garden) and it showed rain over my area, but there was no rain despite
the big area on the map. Tonight it is pouring out there and nothing shows up on
radar. I have never seen anything like this. I have looked at weather radar on the
Internet for 10 + years and if it was raining it showed up on radar. The strange
weather anomaly like this has happened through this Spring / Summer especially. It
makes me wonder what is being done with this weather radar. It is like everything is a
lie.
Well, thanks for your ear for a while and the I.F. and everything you are doing to
awaken the masses to the Evil on the planet.
Take care!!!
I can keep you informed about this area in Ohio.
I forgot to also add that the third-party auto inspection job ended in June of 2007, with
the declining auto industry. All I can find is a very part-time, short-term position of
about 20 hours a week and it is for a non-profit organization, which I just found out
does not pay into unemployment. This position will end Sept. 7. So much for almost 7
years of college, because all I can find is part-time minimum wage work.
Thanks for all you are doing. I have been pushing at my Reps for HR 1207. Marcy
Kaptur is our Congresswoman and seems to be in the right mindset. So she is in there
with Dennis Kucinich and Ron Paul trying to get something done for the people it
seems.

*****
From a Fellow Subscriber:
Hello Bob,

Disturbing inside info about the FDIC few are aware of. I pass it along to you. While
people have a right to know, this is sure upsetting info if the public knew.
FDIC (Federal Deposit Insurance Corporation)

One of the most troubling things I have ever found took place a few years ago when I
had a chance to speak with FDIC officials. I had known for a long time that the FDIC is
not what they say it is and could be quite a mess someday. Unfortunately, nobody
else mentions this.

The FDIC tells citizens that “their money is insured.” They are right their money is
insured, but THEY are not! Quite a play on words. When I began to realize that there
is no way that I as a depositor could ever be insured I began to look into this further.
What is going on here? Why would I think that I would be covered with such
insurance? I pay the FDIC no premiums, how would I have any beneficial interest? I

23
could not. So while it is true that my “money is insured” none of us depositors are!
Who is then? The bank is the beneficial interest. The problems gets worse from here
as I will explain.

I began too look into the Federal regulations and enabling legislation which created
this deception. Unbelievable what I found out. First of all, much of this is not
published anywhere. We have laws which apply to us which we cannot find out about.
Furthermore, when we ask about it, the FDIC people got very upset, as I will explain.

The FDIC regulations (shown below) state that in the event of any type of bank failure
it is the bank who determines ownership of accounts and how much is in individual
accounts (http://www.fdic.gov/regulations/laws/rules/2000-5400.html#2000part330.5)
and this is a huge problem, as I'll explain.

330.5 Recognition of deposit ownership and fiduciary relationships.

(a) Recognition of deposit ownership--(1) Evidence of deposit ownership. Except as

indicated in this paragraph (a)(1) or as provided in § 330.3(j), in determining the amount of
insurance available to each depositor, the FDIC shall presume that deposited funds are
actually owned in the manner indicated on the deposit account records of the insured
depository institution. If the FDIC, in its sole discretion, determines that the deposit account
records of the insured depository institution are clear and unambiguous, those records
shall be considered binding on the depositor, and the FDIC shall consider no other records
on the manner in which the funds are owned. If the deposit account records are ambiguous
or unclear on the manner in which the funds are owned, then the FDIC may, in its sole
discretion, consider evidence other than the deposit account records of the insured
depository institution for the purpose of establishing the manner in which the funds are
owned. Despite the general requirements of this paragraph (a)(1), if the FDIC has reason
to believe that the insured depository institution's deposit account records misrepresent the
actual ownership of deposited funds and such misrepresentation would increase deposit
insurance coverage, the FDIC may consider all available evidence and pay claims for
insured deposits on the basis of the actual rather than the misrepresented ownership.

Note: Notice that it says “insured depository institution” as it is the bank, not the depositor,
who is insured. Sure your money is insured but you as a depositor are not! The American
people would be outraged if they knew this.

The depositor may think that in the event of any trouble all he has to do is bring his
bank statements and deposit slips. He is wrong as they are specifically excluded! I
took quite a bit of research to get the internal procedures of the FDIC (which I have
copies of).

Read this carefully as it is a procedural document for FDIC employees from their
internal handbook in which clearly says that “The FDIC uses deposit account records
of the institution to determine both the identity of the owner(s) and the right and
capacity in which the funds are held.”

Further down it specifically excludes the records of the depositor as is seen in the next
section of this attachment! A depositor has no say in his account or his money!

What would happen if the American people knew this? Now I know why Miss Tanoue
was so upset when I asked her about this. She demanded to know my source of this

24
information, who I was, and several other things. I asked her that this is Federal law,
why the outrage? She admitted that what I am saying is true but wanted to know how I
knew this and who I was. What happens here is that if a bank ever fails and has no
records for whatever reason, its depositors have virtually no recourse. The FDIC only
speaks of its "discretion" in such an event but their own regulations specifically exclude
anything a depositor can provide to verify his account and his money!

The reason why bank statements and deposit slips of a depositor can never be used to
prove anything is simple. As an example, if a person on February 10th received his
January bank statement covering 1/1- 1/31, he would be unable to verify anything that
took place between 2/1 and 2/10. If the bank failed on 2/15 he could not prove that in
these interim dates he did not withdraw all his money as could happen if their were
ever a panic and people had a run on the banks a few days earlier. Therefore, he
could not prove what was in his account at the time of the failure so his records are of
no value. Nobody realizes this and the FDIC was very upset that I did. In the event
the bank records fail (computer problems, EMP issue, or other things) the depositor
has no protection or recourse at all!

*****
From a Fellow Subscriber:
Hi, Bob: I was fascinated by the story of the two Japanese nationals caught at the
Swiss border carrying $134 billion in bearer bonds. I've been told that the Japanese
were just couriers and that the bonds had originally been put up as security for
commercial transactions. The holder of the securities was apparently a Russian-
Chinese financial entity. I say apparently because the trail appears to end there. The
plan was to convert the bonds to Swiss francs.
The Italians won't be allowed to keep the money, although they will get something for
their trouble. The Japanese will be quietly sent back to Japan. The whole incident
will be hushed up.
It would be very embarrassing if the Russian and Chinese state banks were exposed
in a scheme to covertly exchange dollars for Sf. They have all solemnly promised not
to dump the dollar.
Today's spin is that the bonds are forgeries. My source scoffed at that. It's a coverup.
Did you know they held a fallout exercise in NYC last week? (you might have linked
to this; I am only halfway through the IF)
semi-clandestine nuclear fallout drill held in NYC <http://www.prisonplanet.com/new-
york-drill-for-possible-nuke-war.html>
http://www.prisonplanet.com/new-york-drill-for-possible-nuke-war.html
I wonder how many people looked at that story and thought "rehearsal."
Warm regards,

*****
From a Fellow Subscriber:
My Way News - Report: N. Korea plans to fire missile toward Hawaii
<http://apnews.myway.com/article/20090618/D98T1AR00.html> Its not good to be
downrange in the firing range. Have to put your faith in US missile defense systems. It
was good news while in Desert Storm 1, that the Army had the Patriot Missile system
shooting down the scuds, but a few years latter learned that about 95% of the scuds
just feel apart, but in Desert Storm 2 after watching two Korean Hypong 2 cruise
missiles go by and one that was fifty feet above the bridge of the vessel at 1300 April
Fools Day 2003, well after that I was not fooled by the so called Awacs umbrella

25
coverage that the military was putting out. And I saw and heard that April Fool Day
missile.
*****

From a Fellow Subscriber:

As you can see, banks, which have plenty of money, are trying to expedite the
depression.
Bob: A company I own has assets double the debt, great cash flow, 6 figures
profitable ytd. Got a letter from bank Thursday saying they were calling my note! no
reason why.
*****

From a Fellow Subscriber:

This is a ten minute clip from an Alex Jones interview of Aaron Russo. America:
Freedom to Fascism Filmmaker Aaron Russo has exposed first-hand knowledge of the
elite global agenda during this video interview. He exposes that Rockefeller told him
the War On Terror is a fraud that will go on forever because you can never define a
winner or loser. Money will be in an RFID chip implanted in your body.

Rockefeller Reveals 9/11 FRAUD to Aaron Russo

http://www.youtube.com/watch?v=7nD7dbkkBIA
*****

From a Fellow Subscriber:

Hi Bob—Rumor has it that Russian and Italian law enforcement are getting very close
to busting the 9-11 perps—and that the 9-11-job was cocooned in a daisy chain of
PRIVATE security firms that were MI-6-CIA-MOSSAD bucket shops—with Wall Street-
mafia links—all these links are now being exposed by patriots in EU law
enforcement—and all the “REAL” return addresses on the 9-11 perps are now coming
out into the open—and as per your constant reporting in the IF and on the radio—
countless times—it is the exact same illuminist criminal bankster gangs over and over
again—the Enron rip-off—the DOT-COM rip-off---the 9-11 ritual murder atrocity---the
GM take down-rip-off—all have a single return address— Wall Street—link is below—
http://www.european911citizensjury.com/07b.htm
PS—rumor has it that another NK missile test is imminent—and that china has ordered
it’s fishing fleets out of any potential NK launch zones—all the above is well known to
the US gov’t via US’s signals intelligence—rumor has it that US intelligence has
intelligence advisors on the ground in Iran—but that the Obama-Sotero regime is so
crassly stupid about the Iran operation that they are screwing it up from A-Z.
—in your recent reporting in your latest Wednesday edition of the IF in regard to the
whistle blowing of Dr. Charles Krauthammer MD—Dr. Krauthammer—who just
happens to be Jewish and is also a Zionist and strong supporter of Israel—so for him
to break ranks from his elite co-religionist cronies—to—“out”—Obama-Sotero as the
2nd coming of Trotsky who intends to lay waste to America with his crack pot Illuminist
CFR-CLUB OF ROME—social engineering scams disguised as “cost cutting” Dr.
Krauthammer is telling us all that Obama-Sotero hates America and absolutely hates
Americans—and that this hatred is a core belief of his illuminist-Lucifarian religious
belief system—this is why we ALL MUST BE DISARMED so that we can all be MASS
MURDERED AT THE WALL ST ILLUMANIST CRIMMINALS CONVENIENCE.

26
You have long exposed how incredibly corrupt the judges are in the US court system—
this will make the subscribers eyes glaze over—rumor has it that Zionist Judge Larry
Seidlin and his wife, like a couple of grifters, ripped of and 83 year old woman Barbara
Kasler who also happens to be a co-religionist—and that they did some or all to the 83
year old Jewish lady—first they convinced her to sell them her $600K condo for
$300K—then Judge Seidlin and Mrs. Seidlin suckered the 83 yr old Jewish lady to sell
them a $50K piece of land for only $10-TEN DOLLARS-NOT A TYPO—the Seidlin’s
also suckered the 83 year old Jewish lady to write them $500K in checks made out to
them—that the Seidlin’s disbursed in the following manner—$130K to pay down their
mortgage—$100K to buy a house in Pennsylvania—$54k for their daughters school
tuition—NOW THAT’S “REAL CHUTZPAH” —pun intended—the old lady is suing to
recover her losses—Judge Seidlin categorically denies all the above allegations—
there is a pattern of co-religionists ripping of other co-religionists—the TMZ website
that exposed Judge Seidlin is owned by a co-religionist of Judge Seidlin’s—just as I
am a co-religionist of Judge Seidlin’s—Judge Seidlin also happens to be the judge
who heard the Anne Nicole Smith paternity case—during the trial Judge Seidlin was so
“moved” he dabbed a tear from his eye—now he is on trial himself—as per—IN THE
CIRCUIT COURT OF THE 17TH JUDICIAL CIRCUIT, IN AND FOR BROWARD
COUNTY, FLORIDA
BARBARA MUMFORD KASLER,
Plaintiff,
Vs.
LARRY S. SEIDLIN, BELINDA RAY
SEIDLIN, BARBARA A. RAY, and
OREN A. RAY,
JUDGE:
Defendant(s).
links below -
http://www.tmz.com/tag/Barbara+Kasler/
http://blogs.browardpalmbeach.com/pulp/2009/06/judge_larry_seidlin_civil_lawsuit.php

*****
From a Fellow Subscriber:
Hi Bob—rumor has it that Al-Qaeda’ spokesman Adam Gadahn (a.k.a. Pearlman) is a
scion of Jewish ADL—you can’t make stuff like that up—link is below.

http://800poundgorilla.100webspace.net/geeklog//article.php?story=200906161526075
67
*****

From a Fellow Subscriber:

Kennedy Health Bill couldn’t help but remember Mary Jo Kopechne... That\'s my
perception of Teddy\'s knowledge of healthcare. Maybe it should be renamed the
Chappaquiddick Health Care Bill as we will all die in the back of a Kennedy vehicle if it
is passed.
*****
From a Fellow Subscriber:

The United States has entered the third and final stage in the life and
death of a great country.

27
 America's history can be divided into three broad stages. The first
stage was industrialization. This is what took the United States from a marginal nation
of settlers, explorers, farmers, entrepreneurs and religious refugees to become the
world's richest and most powerful country. The source of its wealth and power was its
factories...and its people. The factories were the best in the world. And the people how
labored in them were accustomed to hard work, saving, and self- discipline. There
were no free lunches in America during this period.
The fastest growing cities of the time were manufacturing centers - Chicago,
Gary, Detroit, Pittsburg, and Birmingham. Thanks to its smokestacks and assembly
lines, the US could make things better, cheaper and faster than any other country, with
the possible exception of Germany before WWI and Japan after WWII. That is how the
US became the world's largest creditor - by selling US-made goods to foreigners. And
it's how the United States won WWI and WWII too. American factories could turn out
more tanks, more planes, more guns and more butter than any other nation. And the
United States had an abundant source of fuel too; "Texas Tea" they called it.
After WWII America enjoyed its glory days. It was on top of the world...in
practically every sense. The United States was #1.
The New Deal had fundamentally changed Americans' relationship to the state.
Federal meddlers began playing a larger and larger role in the economic life of the
country. Soon, American attitudes evolved to fit the circumstances. With the world's
reserve currency...a huge lead over its competitors...and a government that promiseto
take care of its wants and needs, the US workforce relaxed. Gradually, it shifted from
making things to buying them...while industry turned its focus from production to
sales...and then, financing. Then, the United States entered the second stage:
financialization.
In this second stage, the center of gravity shifted from the wealth- producing
factories to the financial centers - mainly Manhattan. Prices of real estate in New York
soared. Wall Street came to be seen not merely as a place to invest the proceeds of
honest toil...but a way to create wealth. The most ambitious college graduates turned
from engineering and manufacturing first to sales and marketing and later to finance;
because that's where the money was. At the peak, in the Bubble Epoch, 2003-2007,
Wall Street was drawing in the world's leading scholars in mathematics and statistics...
These people were creating the biggest debt bombs in history...exotic,
complicated financial concoctions...that eventually blew up in their faces. Detroit went
into a decline as early as the late '60s. GM continued to make cars, but it looked to
financing as a way of make money. GMAC became the major source of GM's profits.
Still mills along the Monongahela River began to rust in the '70s. Ships began to come
to the US laden with goods in the '80s and '90s...and to go back empty. The US Fed
tried to stimulate the US economy on several occasions, but it had a strange effect. It
put more credit in the hands of US consumers - who used the money to buy goods
from overseas. In effect, the US Fed was stimulating manufacturing in China!
But in 2007-2008 the bubble in consumer debt blew up. GM went broke in May
of '09. The financialization stage ended. In its place comes a new stage: politicization,
the third and fatal phase of a great nation. Where is the money now? It took the train
from Grand Central Station in Manhattan down to Union Station in Washington, DC.
Want money? Ask Washington. It's pledged an amount equal to three times what it
spent in WWII to the fight against deflation. Where is the power now? Just ask
Chrysler bondholders; in the end it didn't matter what their contracts said...when the
US government turned against them, their goose was cooked. The Obama
Administration, owner of GM, now sets top salaries and determines what kind of cars
the company will make. Washington also determines which businesses will be kept

28
alive - AIG - and which will die - Lehman Bros. Now it's the politicians, not Wall Street,
nor investors, who decide the allocation of big capital...
And when ambitious young people buy a ticket to begin their careers, are they
going to Milwaukee...to Manhattan...or to the lobbyists' mecca in Northern Virginia???
*****

G. Edward Griffin latest interview 1of9 federal reserve

Part 1 youtube video:

http://www.youtube.com/watch?v=4ubSjHtX4zc&feature=channel_page
<http://www.youtube.com/watch?v=4ubSjHtX4zc&amp;feature=channel_page>

Part 2 youtube video:

http://www.youtube.com/watch?v=ZWqmJ4uK3FI&feature=channel_page
<http://www.youtube.com/watch?v=ZWqmJ4uK3FI&amp;feature=channel_page>

Part 3 youtube video:

http://www.youtube.com/watch?v=XM5937nMowA&feature=channel_page
<http://www.youtube.com/watch?v=XM5937nMowA&amp;feature=channel_page>

Part 4 youtube video:

http://www.youtube.com/watch?v=gS2V4yLX3ig&feature=channel_page
<http://www.youtube.com/watch?v=gS2V4yLX3ig&amp;feature=channel_page>

Part 5 youtube video:

http://www.youtube.com/watch?v=tn3HN1zzfAE&feature=channel_page
<http://www.youtube.com/watch?v=tn3HN1zzfAE&amp;feature=channel_page>

Part 6 youtube video:

http://www.youtube.com/watch?v=ot6Q5czAN6U&feature=channel_page
<http://www.youtube.com/watch?v=ot6Q5czAN6U&amp;feature=channel_page>

Part 7 youtube video:

http://www.youtube.com/watch?v=_9nFjL7LIUw&feature=channel_page
<http://www.youtube.com/watch?v=_9nFjL7LIUw&amp;feature=channel_page>

Part 8 youtube video:

http://www.youtube.com/watch?v=epDYOok9kqI&feature=channel_page
<http://www.youtube.com/watch?v=epDYOok9kqI&amp;feature=channel_page>

Part 9 youtube video:

http://www.youtube.com/watch?v=HOnUcmOJszk&feature=channel_page
<http://www.youtube.com/watch?v=HOnUcmOJszk&amp;feature=channel_page>
*****

COMMODITIES
The DOE reports crude oil inventories down 3.87 m/b, gas rose 3.38 m/b and
distillates rose 308,000 barrels.
EIA reports natural gas inventories were up 114 bcf.
Gold ended the week down 0.4% to $935 (up 6.0% y-t-d). Silver fell 4.5% to
$14.20 (up 25.7% y-t-d). July Crude slipped $2.45 (5-wk gain of $12.59) to $69.59 (up

29
56% y-t-d). July Gasoline dropped 5.3% (up 82% y-t-d), while July Natural Gas rose
5.0% (down 28% y-t-d). September Copper fell 5.7% (up 59% y-t-d). July Wheat
declined 5.0% (down 9% y-t-d), and July Corn sank 6.2% (down 1.9% y-t-d). The CRB
index fell 3.6% (up 10.1% y-t-d). The Goldman Sachs Commodities Index (GSCI)
declined 3.2% (up 31% y-t-d).

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

30
The second London physical fixing was $935.25. During the day silver traded $0.20
higher but could not hold the gain. Gold open interest rose 1,177 contracts to 377,013,
as silver OI fell 48 to 107,740. The COT report for this past Tuesday showed a net
reduction in commercial short interest of 17.569 contracts, which is good for those who
are long. The followers of our President passed the security bill and with it the
expanded credit facility for the IMF, which means 404 tons of gold can be sold. We
believe it has already been sold and this is the short cover.
The yen fell .0054 to $.9619; the euro fell .0008 to $1.3956; the pound rose
.0080 to $1.6504; the Swiss franc fell .0011 to $1.0794; the Canadian dollar fell .0030
to $.8817 and the USDX fell .34 to 80.24.
Oil fell $1.82 to $69.55; gas fell $0.10 to $1.93 and natural gas fell $0.04 to
$4.05. Copper fell $0.03 to $2.24; platinum rose $1.90 to $1,209 and palladium rose
$8.30 to $2.48. The CRB fell 4.06 to 252.79.

From a Fellow subscriber:

Hello Mr. Chapman, Below are some comments I received from a friend regarding the
Japanese men and the U.S. bonds going over to Switzerland. My friend is of Japanese
heritage and grew up in Okinawa as an army brat.

The seized bonds have been determined to be counterfeit and the two men are prior-
convicts in Japan who have strong ties with the local criminal ring (yakuza). The
seized bonds have been linked to some cooperative on-going operation the Japanese
mafia had with the Italian mafia. Probably less a N. Korea this or that issue but more
of a mafia / money laundering issue. Japan has been purchasing over 800 billion
dollars in US bonds over the past decade (aside from their official purchases / holding
nearly a trillion dollar in auctioned US bonds, bringing the total to nearly 2 trillion in
dollars based reserves) that has not been accounted for in the official US deficit record
as the bonds were not auctioned through official channels but acquired as a result of
like-kind exchanges or in forms of “payment” of gratuity by Japan for the military
protection and facility allocations within Japan. You know how the system works. after
all, It’s mutually beneficial for the two governments (though not necessarily for its
citizens).

Thanks for your great work on the IF and radio.

*****
Gold miners not finding new deposits to meet future needs – study
http://www.miningweekly.com/article/gold-industry-not-finding-new-deposits-to-
meet-future-needs---study-2009-06-16
*****

The 1929 & 2007 Bear Market Race to The Bottom

Week 87 of 149
http://www.gold-eagle.com/editorials_08/lundeen061309.html
*****
Strange Inconsistencies in the $134.5 Billion Bearer Bond Mystery
http://seekingalpha.com/article/143462-strange-inconsistencies-in-the-134-5-billion-
bearer-bond-mystery

31
 *****
Italy has asked US authorities to check the authenticity of what appear to be
US government bonds worth $134 billion seized near the Swiss border, a senior Italian
tax police officer said on yesterday.
Early in June, Italy's Guardia di Finanza, or tax police, said they had seized the
US bonds from two Japanese nationals at the Chiasso rail station in the north of Italy
close to the frontier with Switzerland.
"We have already established contact with American colleagues who should
give an expert opinion on the bonds to establish their authenticity or falseness," said
Rodolfo Mecarelli, head of the financial police in the Como province, which includes
Chiasso.
Mecarelli said the tax police and the magistrate investigating the case have
strong doubts about the authenticity of both types of bonds found in the baggage of the
two individuals.
The bonds comprised 249 "Federal Reserve" bonds of $500 million nominal
value each and 10 "Bond Kennedy" with a $1 billion nominal value, the tax police said
on June 4 in a statement on the seizure of the bonds.

CANADA

April Wholesale Sales fall 0.6%.

May Leading Indicators down 0.1%.
May CPI rises 0.7% MoM, 0.1% YoY.
April retail sales down 0.8%, -0.5% ex Autos.

*****
From a Fellow Subscriber:
Hi Bob,
We Canadians are in trouble. Canada just started operating this computer monster.
They say it is for research. I say the research will be done on Canadian citizens.
Spying and gathering every bit of data conceivable on Canadians. They will likely know
everything you say, to whom it is said, everywhere your money is, everywhere you go,
your medical records and among much more 24 hour electronic surveillance.

Notes on the size and power of the new computer:

Almost everything about the system sounds improbable. It uses the same amount of
energy, at peak consumption, as 4,000 homes. It is about 30 times more powerful than
the next-fastest research computer in Canada. It can whirl data through its digital veins
at the rate equal to about two DVD movies a second. It is among the 15 fastest
computers in the world, and the fastest outside the United States.
Or think of it this way: If you've purchased a decent home computer lately, it may have
come with a relatively fast 2.53 gigahertz processor. Or maybe you shelled out more
for a fast, top-of-the-line “quad core” system, which runs on four such processors.

U of T's new toy runs on 30,240 of them.

Canada's monster computer roars to life
Omar El Akkad
From Thursday's Globe and Mail, Thursday, Jun. 18, 2009 03:51AM EDT
http://www.theglobeandmail.com/news/technology/canadas-monster-computer-roars-
to-life/article1186431/
*****

32
LATIN AMERICA
There seems to be no stopping Brazilian car sales, as they rose yet again in
the first two weeks of June, the National Automotive Dealership Association,
Fenabrave, said Wednesday.
Thanks to a continued tax break for auto makers, new car prices have declined
by as much as 7.5% from where they were last year. That's helped boost sales
continuously and the first weeks of June have been no exception.
So far, car sales rose 13.01% to 106,119 units, up from 93,902 units sold in the
first two weeks of May. Sales are also up 11.2% from the 95,387 units sold last year
when Brazil was on the cusp of a record breaking year for car sales.
When light trucks are thrown in the mix, auto vehicle sales rose 11.2% on the
month and 10.3% on the year to 128,103 cars, pick up trucks and sport utility vehicles.
Fiat (FIATY) was the market leader with a 26.3% market share so far this
month, followed by Volkswagen (VLKAY) with a 24.8% market share and General
Motors (GM) with 20%.
The Volkswagen Gol remained the number one car sold again over the last two
weeks.
The pace of consumer inflation in Brazil's largest city, Sao Paulo, slowed in the
four weeks ended June 15, as housing and transport prices decelerated, the Fipe
research foundation said Wednesday.
Fipe, which is affiliated with the University of Sao Paulo, said its consumer
price index rose 0.19% in the period, compared with a rise of 0.23% in the four weeks
ended June 7.
The figure was in line with market forecasts for an increase of between 0.14%
and 0.23%.
Housing prices picked up 0.27% in the four weeks ended June 15, compared
with an increase of 0.29% in the four weeks ended June 7.
Transports prices dropped 0.24% in the period, compared with a fall of 0.17%
in the previous period.
With recent figures indicating inflation is under control and signs of an
economic slowdown, Brazil's central bank cut the Selic base interest rate to 9.25%
from 10.25% earlier this month.
Chile’s peso is poised to be the world’s best performing currency this week
after the government announced plans to extend its dollar sales in the foreign-
exchange market to fund an additional $4 billion in stimulus. The peso jumped 4.9%
this week.
*****
Water for Sale
http://www.coha.org/2009/06/water-for-sale/

*****

EUROPE
The euro zone's balance in trade in goods with the rest of the world increased
in April to the largest surplus since October 2007, boosted by trade in manufactured
goods, data from the European Union's statistics agency showed Wednesday.
The 16 countries that use the euro had a combined surplus in their trade in
goods of EUR2.7 billion, compared with a surplus of EUR1.8 billion in March, a figure
that was revised from a smaller surplus of EUR0.4 billion.
Economists surveyed by Dow Jones Newswires last week had forecast a trade

33
deficit of EUR1.5 billion.
Exports from the euro zone declined to EUR102.1 billion from EUR109.6 billion
in March, while imports decreased to EUR99.4 billion in April from EUR132.0 billion a
month earlier.
The total trade balance for the euro zone between January and April, however,
was a deficit of EUR8.1 billion although it was a lower deficit than the EUR9.5 billion a
year earlier.
Trade in manufactured goods, which include chemicals and machinery, totaled
a surplus of EUR41.4 billion between January and March -the most up-to-date months
the data cover. While that was down from the EUR67.3 billion surplus this time in 2008
it compared with a deficit of EUR53.7 billion in the trade of primary products which
include food, drink and energy products.
The deficit for this sector was largely due to a smaller surplus in the trade of
food and drinks rather than the EUR49.0 billion deficit in trade of energy products
between January and March, which was smaller than the EUR75.3 billion deficit over
the same period a year earlier, Eurostat data show.
The breakdown of the energy trade balance shows that imports of energy - the
euro zone imports much of its oil and natural gas - declined 36% in the first three
months of 2009 from the same period a year earlier while exports fell 39% between
January and March this year from a year ago.
Among the largest euro-zone economies Germany reported the largest surplus
in the first three months of 2009 of EUR27.4 billion. While that was down from a
surplus of EUR50.4 billion a year earlier it compared with trade deficits from both
France and Italy.
Swiss Adjusted Real Retail Sales rise 1.2% on April, same than last month.
Some 1.9 million jobs disappeared across the European Union in the first three months
of this year -- the sharpest drop in payroll numbers on record, the EU statistical agency
Eurostat said Monday.
Falling demand for goods and services both in Europe and in export markets is
forcing companies to shed workers, sending jobless numbers to the highest level in a
decade.
Eurostat said the number of people employed in the EU fell 0.8 percent in the
first quarter compared to the fourth quarter of 2008, the worst drop since it started
collecting figures in 1995.
The number of workers in the 16 nations that use the euro also fell 0.8 percent
from the previous quarter as the region shed 1.2 million jobs.
Just under 223.8 million people were employed in the EU in the first quarter,
146 million of them in euro-zone nations, Eurostat said.
EU business federation Business Europe forecasts that some 4.5 million
workers may lose their jobs this year as company profits plunge. It represents more
than 20 million European companies.
Sweden's unemployment rate soared higher in May, substantially above expectations,
throwing into question just how much the country's labor market will deteriorate in the
coming years from financial chaos.
The Swedish jobless rate in May surged to 9% from 8.3% in April and 5.9% in
May of 2008, Statistics Sweden said Thursday.
Russian gold and foreign-exchange reserves fell by $2.9 billion to $406.6 billion
in the week to June 12, the central bank said Thursday.
This follows an increase of $8.4 billion in the previous week.

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

35
April but were up 0.9% from April 2008. Petroleum products were up 1.7% from April,
but down 26.4% from a year earlier.
Today three Swiss politicians from the center-right SVP called for a "healthy
currency" referendum to reverse the 1999 vote which cut the link between
Switzerland's currency, the Franc, and the partial backing of its central-bank Gold
Bullion holdings.
Commercial banks in the 16-nation euro region may lose a further $283 billion
by the end of next year as the financial crisis forces them to write off bad loans, the
European Central Bank said. ‘Hard-to-value assets have remained on bank balance
sheets and the marked deterioration in the economic outlook has created concerns
about the potential for sizeable loan losses.
As many as 14% of investment grade European companies will be unable to
meet their cash requirements in the next 12 months even as bond issuance is at
record levels, according to Moody’s. For high-risk, high-yield companies the situation is
worse, with as many as 20% failing to have sufficient cash to meet outflows.
OAO Sberbank, VTB Group and Russia’s other lenders are facing a surge in
‘troubled assets’ that may total $213 billion, S&P said. As much as 38% of all assets
held by Russian banks… may become problematic by the end of 2011. ‘The extent of
the damage and its impact on the Russian banking industry will depend, in our view,
on government policies to support banks and shore up troubled industrial enterprises,
including state-owned companies,’ said Scott Bugie, an S&P analyst.”

*****
Any talk of a healthy francs
http://translate.google.com/translate?js=n&prev=_t&hl=en&ie=UTF-
8&u=http%3A%2F%2Fwww.tagesanzeiger.ch%2Fwirtschaft%2Fkonjunktur%2FD
as-Gerede-von-einem-gesunden-
Franken%2Fstory%2F19457166&sl=auto&tl=en&history_state0
*****
EU Backs New Financial Agencies to Unify Oversight
http://www.bloomberg.com/apps/news?pid=20601110&sid=aPSK3WtHVa5U

*****
Serbia: Ten Years Later
http://www.truthout.org/061809M

*****
SERBIA & KOSOVO RULED BY THE ALBANIAN KLA MAFIA / HEROIN
TRAFFICKING AND DEATH!!!
http://revolutionarypolitics.com/?p=1230
*****

ENGLAND
Gross mortgage lending eased in May, but it is likely that very low re-
mortgaging volumes masked a slight improvement in lending for home purchases,
data from the Council of Mortgage Lenders showed Thursday.
Gross mortgage lending - which includes both lending for house purchase and
remortgage - fell to an estimated GBP10.3 billion in May from GBP10.5 billion in April,
leaving it 58% lower on the year, the CML said.

36
 Although recent signs from the house market have been encouraging, the CML
doesn't expect a significant recovery in sales in the coming months, CML economist
Paul Samter said in a statement.
"Lending volumes appear to have stabilized at extremely low levels, but the
weak labor market and lenders' limited access to funding will constrain activity for
some time yet," he said.
May CBI Industrial Trends Survey rises to -51 from -56.
The UK public sector borrowed a net GBP19.9 billion in May, the highest level
for any month since records began in 1993, as the recession continued to bite into tax
revenue, the Office for National Statistics reported Thursday.
May's borrowing was very close to economists' expectations of GBP20.0
billion. In May 2008, the public sector borrowed a net GBP12.2 billion.
In the first two months of the financial year, which started in April, the public
sector borrowed a net GBP30.5 billion, compared with GBP14.1 billion in the year-
earlier period.
The UK government is targeting a full-year PSNB of GBP175.0 billion.
Central government current receipts fell by 10.8% on the year earlier, with
revenues declining across the board. Value-added tax receipts for central government
were down 23.3% on the year, while taxes on income and wealth fell 11.4%.
Meanwhile, central government current expenditure expanded 7.4% on the
year. That included a 13.2% increase in interest payments and 7.9% increase in net
social benefits on the year.
The public sector net cash requirement was GBP18.8 billion in May, compared
with GBP9.6 billion in May 2008. A Dow Jones Newswires survey of economists had
forecast a PSNCR of GBP17.5 billion.
In the financial year to date, the net cash requirement was GBP23.5 billion,
compared with a year earlier PSNCR of GBP6.7 billion. That is a record cash
requirement.
The government target for its net cash requirement for the current fiscal year is
GBP188.6 billion.
"Underneath the headline gross lending figure, it's likely that a moderate
improvement in house purchase lending in May has been offset by very low re-
mortgaging volumes as borrowers stay with existing deals," he added.
M4 Money Supply (MoM) rises 0.2% in May.
The British Bankers’ Association may expand the pool of banks that set the
London interbank offered rate in a bid to bolster confidence in the benchmark for more
than $360 trillion of financial products around the world.
Banks without a physical presence in London may apply to join the panel of
members that contribute to the Libor-setting process, the BBA said on its Web site
today. Banks will have to be “material participants” in the London market, the BBA said
yesterday in an e-mail. A year ago, the organization said it would look to expand the
panel of contributors and possibly add a second daily survey.
What they fail to tell you is that the Federal Reserve and the US government
provided funding and guaranteed the Libor rate, which they deliberately took from
4.625% to 0.61% in the three month setting. The entire market is bogus.
UK-owned banks cut their overseas lending for the second straight quarter in
the three months to the end of March, although much less sharply than at the end of
2008.
The Bank of England Friday said U.K. banks reduced their lending to borrowers
outside the country by $108.1 billion to stand at $3.6 trillion. In the final quarter of last
year, U.K. banks cut their overseas lending by a massive $723.6 billion.

37
 *****
Parents banned from taking pictures of their own children at sports day
http://www.telegraph.co.uk/education/educationnews/5560978/Parents-banned-
from-taking-pictures-of-their-own-children-at-sports-day.html
*****
JAPAN
May Machine Tool Orders decrease 79.2%.

AUSTRALIA AND NEW ZEALAND

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

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

38
AFRICA
*****
Quarter of men in South Africa admit rape, survey finds
http://www.guardian.co.uk/world/2009/jun/17/south-africa-rape-survey
*****

HEALTH
FOOD CHOICES AFFECT BRAIN CHEMISTRY
Most of us think we select food based on taste or because we know it is good for us.
The unconscious food choices we make affect our brain chemistry and overall mood.
Foods can act like antidepressants or speed. When you think about it, we self-
medicate ourselves with food everyday. Long-term use of some foods can deplete our
system of vital nutrients, which can create the building blocks for disease.

SUBTANCES THAT MANIPULATE FOOD

Some combinations of foods can make all the difference when considering nutrition.
The obvious add-ons you are probably thinking about are the food additives, dyes and
preservatives. However, we are so used to sugar and caffeine we rarely stop and
consider how these substances modifies the food we eat and how this affects our
brain. Certain food substances affect the neurotransmitters of the brain and change
how the brain cells communicate. People use caffeine for more than just to stay
awake. Without caffeine half of America would be constipated. Many people depend
on their morning coffee to move their bowels each day. There have been many studies
on sugar and caffeine. Although caffeine is known to suddenly lift mood, one study
suggested that caffeine affects certain neurotransmitters (such as serotonin) that are
linked to depression, violence and moodiness.

COFFEE RICHTER GRAPH

Many people complain about being addicted to caffeine but the science behind the
coffee studies indicate that no matter how addicted you are, just one cup of coffee
does the trick. Dr. Andrew Baum of the medical psychology department at Uniformed
Services University says that you don’t need more than one cup of regular coffee to
get the same result. However, coffee drinkers know their caffeine. Under blind taste
tests they know which coffee is the decaf and which has the caffeine. Also, the study
concluded that more people medicate themselves with regular coffee to counter their
depression. It should also be noted that coffee has thousands of years of safe use
compared to the antidepressant drugs. Of course anything in excess can wreck the
body. More than 2 to 4 cups of regular coffee per day can contribute to anxiety,
nervousness, mood swings and insomnia. NOTE: beware there is more caffeine in
some over-the-counter products such as Midol and Extra Strength Bayer, which have
more caffeine than in a cup of brewed coffee, espresso or a Mountain Dew soft drink.

KEEPING IT STRAIGHT
Who knew that a little cup a java could upset the body’s chemistry to the point of
psychiatry? Dr. Simon Young, Department of Psychiatry at McGill University in
Montreal warns that when our brain has low serotonin we are susceptible to psychiatric
symptoms. This would explain why air traffic controllers struggle with depression living
on caffeine during their stressful shift in the control tower. Between 80 to 90% of
Americans are addicted to caffeine and at least 15% are so concerned they are cutting
back or have stopped eating foods with caffeine. Adding more serotonin to the brain

39
can relieve depression and violent tendencies. We will examine how we can achieve
this with natural foods.

WHY SUGAR?
When people get depressed they often turn to sugar to relieve the blues. Americans
eat more sugar during the winter than any other season. You may recognize fall/winter
depression known as SAD (seasonal affective disorder). Some people are more
sensitive to light and when the days become shorter their mood shifts and depression
can creep in. People who have SAD usually crave sweets and starches, which help
them to fight the winter blues. Dr. Norman Rosenthal, a SAD researcher at the
National Institute of Mental Health, says that the normal person after they eat carbs or
sugar feel less alert and less energetic but the SAD individual has the opposite
reaction. Carbohydrates and sugar have become an antidepressant to the person
suffering from SAD. No wonder the WHO wants to regulate foods like drugs under the
Codex Food Harmonization Code. Does science know why the SAD individuals have
the opposite reaction to sugar and carbs? One explanation is that the depressed
people already have abnormal brain chemistry stemming from metabolism and
serotonin levels. Eating these foods boosts their serotonin levels. Should people who
suffer from SAD avoid sugar and carbohydrates especially during the winter months?
No. Avoiding these foods only promotes a deeper depression. The body is sending a
strong biological signal to eat these foods the point of addiction. Going on a high-
protein, low carb diet would probably be fatal. You can cut back on the sugar and eat
more carbs like dried beans, pasta, vegetables, cereal, whole grain bread and
crackers. These foods will work just as well but at a little slower rate helping to balance
out the metabolism. It is advisable to avoid excessive alcohol or caffeine as medication
for the winter blues. These foods tend to increase anxiety and adverse mood swings.

SOME FOOD SUBSTITUTES

Studies have shown that eating more green vegetables lightens your mood and can
help fight SAD or depression. Why do greens help? They contain folic acid (folate) and
many who have SAD or depression have a folate deficiency. Folic Acid is a B vitamin
and the central nervous system depends on B vitamins. You will find high
concentrations of folate in legumes. Dr. Young at McGill University found that by
eliminating the folate deficiency it cures depression. His research revealed that those
with depression and other psychiatric disorders had a much lower folate level than
healthy, sound-minded individuals. When you have low folate it causes the serotonin
level in the brain to severely decline. With as little as ¾ cup of spinach you can relieve
depression. It is best to get your folate from foods rather than getting too much from
pills. Other foods that contain vitamins known to lift mood are; Brazil nuts, tuna,
swordfish, sunflower seeds, oat bran and whole wheat.

THE MOOD ELEVATOR

One study surprised me because we know garlic helps to lower cholesterol and thin
the blood. However researchers say that it also has a positive effect on mood. The
study by German researchers at the University of Hannover stated that the test group
that had garlic had a greater feeling of well being and a better mood. They also stated
that the garlic group reported feeling less fatigued, anxious, agitated and irritable. No
wonder garlic is the most popular over-the-counter product in Germany.

GETTING HOT UNDER THE COLLAR

40
Dr. Paul Rozin of the University of Pennsylvania psychology department researched
the effects of capsaicin in hot peppers and how it affected depression in people. The
hot pepper induces a rush of endorphins to the brain, which can produce a temporary
high. How does this work? According to Dr. Rozin the hot taste in the mouth stimulates
nerve endings to send a chemical signal to the brain that you ate something very hot.
The brain releases natural painkillers (endorphins) that work similar to a shot of
morphine to stop the pain. If you keep eating the hot peppers the brain continues to
release endorphins and you can get a buildup of endorphins creating a “pleasure
rush.” According to this research, it is hard to stay depressed when eating hot peppers.

YOUR NATURAL TOOLS

Obviously changing the way you eat will have a significant impact to help with
depression, anxiety, insomnia, mood swings, low energy etc. If you can’t seem to eat
right or you think you need a little extra nutrition to get you over the hump, I can
suggest the following concentrated organic products from Apothecary Herbs; Body
Foundation Food Mix (folic acid, vitamin B plus plant protein, amino acids and other
vitamins), Circulation Formula (capsaicin) or All-In-One or Heart/Cholesterol/BP
formula (capsaicin and garlic). To help tone the bowel so you are not dependent on
caffeine, use the Bowel Formula A. For any remaining feeling of anxiety or stress use
Relaxation Formula, Valerian Root or Emotional Stress Formula. These are all at
Apothecary Herbs (the manufacturer of these products)
http://www.thepowerherbs.com toll free 866-229-3663, International 704-875-8010.

EMERGENCY ALERT!!
The WHO has upgraded their pandemic alert for the swine/bird flue to level 6. If you
haven’t gotten your Pandemic Kit from Apothecary Herbs now is the time.
UPGRADED PANDEMIC KIT – Call Apothecary Herbs 866-229-3663, International
704-875-8010 or http://www.thepowerherbs.com each kit contains 8 products for 2
adults for 10-day pandemic in a handle travel case for just $175.00.

OUR VERSION OF THE ECONOMIC STIMULUS – Apothecary Herbs is offering 15%

off your total order before shipping when you print off your shopping cart order online
or fill out the catalog order form and mail in your order with your check or money order.
Get prepared, healthy and save – what could be better than that? International orders
can send an International Money Order and save 15%. Apothecary Herbs, P.O. Box
918, Huntersville, NC 28070 USA.

EXTRA HEART ATTACK PREVENTION

In addition to the heart strengthening therapies above, while you have some extra
prevention on hand for the onset of a heart attacks. For a combo of five potent
formulas in a handy carry pack for emergencies especially when you can’t get medical
attention - look for the Heart Attack Pack (just $99.00) at Apothecary Herbs
http://www.thepowerherbs.com 866-229-3663, International 704-875-8010.

YEAR’S SUPPLY OF HERBAL MEDICINE – Stock up with over 90 products designed

to protect your immune system, cleanse the body and address what ails you. NOW
SAVE 15% on this package with the STIMULUS DISCOUNT. Call Apothecary Herbs
866-229-3663, International 704-875-8010 http://www.thepowerherbs.com

HERBS FOR PETS - Dog & Cat Immune Booster Formulas plus Dog & Cat
Congestion Formulas plus toxic-free flea and tick collars, shampoo and spray at

41
Apothecary Herbs. Call now toll free 866-229-3663, International 704-875-8010 or
http://www.thepowerherbs.com.

SURVIVAL ITEMS – STAND-UP FOOD POUCHES (NOW SAVE 15% CALL NOW)
Order your convenient and compact, dehydrated food in the stand-up pouch for food
emergencies or recreational camping. Light weight food pouches have a long shelf life,
are easy to store for your rainy day food shortages and don’t cost a lot to ship. We
have several meals to choose from in single and double serving sizes to avoid waste.
Mix and serve in the stand-up pouch and avoid the need for extra utensils and
cleanup. Order single serving or double serving meals by the case and for a hot meal,
don’t forget the reusable Flameless Oven for just $13.00. Call Apothecary Herbs 866-
229-3663, International 704-875-8010 or order online http://www.thepowerherbs.com.

Portuguese Sea Salt® - imported from the traditional salterns (a 2000-year tradition)
along the coast of Algarve, Portugal. Salt crystals are harvested by hand and sun-
dried. This is a true artisan sea salt providing richness as well as a smooth and elegant
flavor to food. 1/2 pound ground unrefined Portuguese Sea Salt® just $8.50 at
Apothecary Herbs 866-229-3663, International 704-875-8010
http://www.thepowerherbs.com.

HERB TALK LIVE – with Herbalist Wendy Wilson every Tuesday & Thursday at 7:00
pm EST on AVR www.theamericanvoice.com and Thursday at 4:00 pm on WBCQ
7.415 and Saturday 7:00 am on GCN www.gcnlive.com. Free radio show archives at
http://www.thepowerherbs.com

#10 CANS SURVIVAL FOOD – call Freeze Dry Guy 866-404-3663 or

www.freezedryguy.com.

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

42
anyone who is on the fence about this vaccine issue...this will eliminate and doubts
about the dangers of vaccines. We are trying to save babies lives! This is the most
incriminating evidence ever brought out against vaccines. You will see it for yourself-
with your own eyes. PLEASE, refer your friends and families to my website for all of
our scheduled talks. Get to one yourself and witness the historical fall of the vaccine
industry.

We are out to "shut them down" with public out-cry! When enough people stop
getting the toxic injections, they will have to pay attention! The pediatricians do not
know what they are doing! Pastors are not aware that vaccines are made on aborted
baby organs!
YES, the vaccine researchers pay a fee to the abortionists to give them whole,
live babies to harvest vaccines on!
See the attached flyers and please try to come and also encourage your friends to
attend. Forward this Email to all who you know!! This will be life-changing for all.
See Moulden's bio and you will understand the power in this event.
http://www.childhoodshots.com/
*****
VACCINE NATION
http://www.youtube.com/watch?v=bdF4AEYHRvY
*****
Health insurers refuse to limit rescission of coverage
http://www.latimes.com/business/la-fi-rescind17-2009jun17,0,3508020,full.story
*****
9,200 potentially deadly Fort Detrick pathogens possibly missing
<http://www.washingtonpost.com/wp-
dyn/content/article/2009/06/17/AR2009061703271.html> --FBI
investigators concluded that Fort Detrick probably was the source of
the anthrax spores used in the deadly mailings of 2001. --Ebola virus,
anthrax bacteria, botulinum toxin, hemorrhagic fever and others 'not
accounted for' 18 Jun 2009 An inventory of potentially deadly pathogens at
Fort Detrick's infectious disease laboratory found more than 9,000 vials that
had not been accounted for, Army officials said yesterday, raising concerns
that officials wouldn't know whether dangerous toxins were missing. After four
months of searching about 335 freezers and refrigerators at the U.S. Army
Medical Research Institute of Infectious Diseases in Frederick, Maryland,
investigators found 9,220 samples that hadn't been included in a database of
about 66,000 items listed as of February, said Col. Mark Kortepeter, the
institute's deputy commander.
*****

Bird Flu Criminal charges filed in Austria

http://birdflu666.wordpress.com/2009/04/13/case-about-bird-flu/

*****
SCHEDULED ISSUES
Every Wednesday and Saturday June 2009

43