Wednesday, December 30, 2009

Eyewitness Revelations: Confirmed FBI Cover-Up Of Flight 253 Attack

Editor’s note: Detroit attorney Kurt Haskell dropped bombshell revelations concerning his eyewitness experience of the Flight 253 attack and how the FBI detained a second man after dogs detected a bomb in his luggage on The Alex Jones Show today. The FBI has not only ignored Haskell’s story, but they have launched a cover-up by refusing to even acknowledge the existence of another man who filmed the entire flight, including the aborted attack, as well as the well-dressed man who aided the bomber to board the plane even though he had no passport and was on a terror watch list.

Watch this space for more stories on this astounding news that the corporate media has completely failed to cover.

Kurt Nimmo
December 29, 2009

Detroit attorney Kurt Haskell appeared on the Alex Jones Show today and detailed his experience at the Amsterdam airport and on flight 253. Mr. Haskell provided information not covered by the corporate media.

In addition to a detailed retelling of the story he gave the corporate media, Mr. Haskell addressed the unprofessional and lackadaisical behavior of the FBI and airport security after the plane landed at the Detroit Metro airport in Romulus, Michigan. He characterized their behavior as a “complete embarrassment. They actually put us in more jeopardy than we were already in.”

Passengers were told to remain seated in the aircraft for 20 minutes after landing despite the fact security did not know at that point if there was an explosive on the plane or if the fire started by the suspect Umar Farouk Abdul Mutallab while on descent to the airport had spread under the floor in the cabin or to the fuel tanks in the wings.

After being allowed to disembark from the plane by officials, passengers were detained in customs with their carry-on luggage for six hours while they waited to be interrogated by the FBI, according to Haskell.

At this point a bomb-sniffing dog pointed at carry-on luggage in the possession of a man Haskell described as Indian around 30 years old. Officials led the man away to an interrogation room. Haskell said he was concerned because the bomb-sniffing dog had flagged the man, indicating he may have had explosives in his carry-on luggage. The Indian man was subsequently led away in handcuffs.

Following this incident the FBI moved the passengers to another location. “You’re being moved,” the FBI told them, “it is not safe here. I’m sure you all saw what happened and can read between the lines and why you’re being moved.”

Haskell said the corporate media refuses to cover this aspect of his story. He has repeated it to “countless” news agencies and they uniformly have not included it to his knowledge.

Mr. Haskell questioned why officials have not released the Amsterdam airport security video that will undoubtedly reveal crucial information about the “sharp-dressed man” who escorted a disheveled Mutallab to the boarding area. Haskell described the suspected terrorist as appearing to be a “poor black teenager.”

The well-dressed Indian man did all the talking. He insisted Mutallab be boarded on the plane without a passport and when an airport employee refused to do so Mutallab and the Indian man went to talk with a supervisor. The Indian man tried to pass off Mutallab as a Sudanese refugee and have him boarded despite the fact doing so would be in violation of regulations concerning refugees. In general, documentation must be provided by an embassy in order for refugees to board international flights.

Mr. Haskell did not see Mutallab again until the botched terror bombing inside the plane on the approach to Detroit. He did not know how Mutallab finally boarded the aircraft.

The FBI was not pleased with Kurt Haskell when they conducted a follow-up interview earlier today in Michigan. They showed him close-up photographs of various people, including Mutallab. “They kind of tried to trick me,” Haskell explained. The agents tried to pass off two photos of Mutallab as different people. Kurt asked the agents if they were attempting to impeach his story and smear him.

The Indian man was not included in the photographs.

Haskell asked them why he was not shown a full body shot of the suspect. Haskell was eight rows back from the suspect. The FBI agents did not answer and were displeased with the question. He also asked the FBI agents if it would be more appropriate to bring the surveillance video from the Amsterdam airport instead of still photos. “I don’t think they liked that comment from me,” Haskell added. The FBI said they did not have the videotape. They also made a point to tell Haskell they were asking the questions and not him.

The agents showed Haskell a photograph of the man flagged by the bomb-sniffing dog and taken into custody in customs. “Isn’t this the man who had the bomb in his carry-on bag that you arrested in customs who you refuse to admit exists?” Haskell asked the agents. “They really didn’t like that comment from me and had no comment back to me but I said it sure looks like the man you refuse to admit exists.”

Kurt Haskell was circumspect and careful not to speculate during the interview with Alex Jones. He indicated he is only interested in the facts and does not want to endanger his version of events by speculating on motives.

Related Stories

Exclusive: FBI Silent On Plane Bomber’s Accomplice
Evidence Clearly Indicates Staged Attack on Detroit Flight
Man Videotaped Underwear Bomber On Flight 253
Officials Admit Second Man Detained As More Witnesses Emerge

Tuesday, November 17, 2009

The European BioWar outbreak

by Dr Rebecca Carley

The biggest story on the Planet today is the outbreak of a veryserious Advanced Biological War virus in Europe.

The second biggest story on the Planet is the suppression of this story for almost two weeks by the corporate owned mainstream news media.

There is a lot we know and a lot that we can only speculate on about what is unfolding in Central Europe. We know that in mid-October, less than a month ago, there was a growing number of cases of what many thought was Swine Flu (A/H1N1) in the western part of the Ukraine. We know that many hundreds if not thousands of people in western Ukraine witnessed low flying light airplanes aerosol spraying something over

Ukrainian cities during the days of October 29, 2009 and October 31, 2009. We know that beginning the night of October 29th, massive numbers of people begin to get very sick. We know that the Ukraine government issued a statement denying that it was doing any aerial spraying to combat the growing disease or authorizing any spraying over Ukrainian cities. We know that by October 30th, the Ukrainian
authorities closed all schools for three weeks and banded public gatherings.

We do NOT know what disease the people were/are coming down with. We do know that doctors are describing the disease as Pneumonic Plague, or as some type of hemorrhagic fever, or as hemorrhagic influenza, or as hemorrhagic pneumonia. We know that the illness, whatever it is, does not appear to be A/H1N1. We do not know if the disease is a recombination of A/H1N1 with other viruses or some totally different
virus or if it is in fact a virus. We know that the World Health Organization (WHO) has had several days to sequence the genes of the disease but has failed to release this data.

We know that WHO has NOT called for the quarantining of the Ukraine or the shutdown of all global travel to/from the area of infection and that this is the same thing that they did when Mexican Swine Flu (A/H1N1) first broke out and that the failure to contain that virus early on ensured its spread throughout the world.

We know that the internal temperature of the lungs of those with a terminal case of what many are calling 'Ukrainian Plague' is often from 130F to 135F. We do know that autopsies show that the lungs are filled with blood, and are black in color, and that the lung tissue has turned to mush. We know that patients who first show any signs of illness usually crash in less than 48 hours, sometimes the same day.

We know that the disease was spreading by about 200,000 per day but that this has slowed to about 100,000 day now, in the Ukraine, as people take extraordinary steps to contain the spread of the disease.

We know that well over one and a third million people in the Ukraine are very ill with the disease (according to published official sources) and that over 60,000 are hospitalized in serious to critical condition. We know that the disease has a very high transmission rate with a likely low amount of viral (if it is in fact a virus) material needed to cause an infection. We know that the official reports of deaths are under 300 in the Ukraine. We also know that it is normal for hospital admissions of people with ARI (acute respiratory infection) to have a fatality rate of from 5% to 10%. We know that non-official sources were reporting over 3,000 deaths several days ago and that this number is more in tune with the 5-10% fatality rate than
the official figures.

We do not know what effective treatments are for this illness. We do know that young adults seem to be more in danger of this illness. We suspect that 'cytokine storming' similar to that in the 1918 Spanish Flu, that killed approximately 50 million people, is taking place.

We know from official Ukrainian Health Ministry reports that the illness does not test out as Mexican Swine Flu (A/H1N1). We do not know if the existing Swine Flu vaccine has any effect, but based on the non-positive response to Swine Flu in testing, we suspect that the vaccine is ineffective as the viral protean shell is different than A/H1N1 (if in fact it is a virus that causes the illness).

We know that the illness has spread to Poland, where over one quarter of a million people are now very ill. We know that it has spread to Belarus and to Hungary and elsewhere in central Europe. We know that 900,000 people are said to have Swine Flu in Norway but we do not know if this is related to Ukraine Plague in any way.

We know that on November 8th a South African site ( carried the following:

"Suspicious aircraft were forced to land. A US operated (Russian-made long-range heavy transport) AN-124 changed its call sign from civilian to military which then triggered a response from the IAF (Indian Air Force) upon entering Pakistani air space (forcing) the plane to land in Mumbai while (a) second one was forced down by
Nigerian fighter jets that also arrested the crew."

"According to reports, China's People's Liberation Army Air Force contacted the Indian and Nigerian intelligence officials about the presence of these US operated Ukrainian aircraft amidst growing concern that the United States was spreading 'biological agents' in the Earth's atmosphere, which some Chinese officials believed to be an attempt to (commit) mass genocide via the spread of H1N1 swine flu."

These aircraft "were carrying 'waste disposal' systems that could spray up to 45,000kg (nearly 100,000 pounds) of aerial type mist from sophisticated....nano pipes" in the planes' wings - called chemtrails.

We know that Baxter International Pharmaceuticals sent 72 kilos of human influenza H3N2 vaccine materials to 16 labs in European nations which contained live H5N1 Bird Flu viruses. We know that this was only discovered when a Czech lab tested the material on several ferrets (ferrets have a similar respiratory system to humans) and all of the ferrets died in short order. We know that Baxter claimed that this was
human error. We also know that such a 'human error' is basically impossible with the containment protocols in place at Baxter and any other modern biolabs using Biosafety Level 3 (BLS-3) lab technology.

We know that in mid-August a Joseph Moshe, who is a Mossad biological warfare expert, called in to Dr. A. True Ott's national radio talk show and reported that Baxter was getting ready to release a deadly plague from its Ukrainian lab and that he was shortly meeting with US Attorneys in Los Angles to give evidence about this. We know that shortly thereafter Moshe was apprehended by Federal agents and LA police and taken to the Israeli Consulate. We know that he was quickly flown to Israel and that no further word has come from him.

We know that over the last three or so years a large number of biological experts, from a number of places all over the world, have died strange deaths and that this has been commented on by various publications in the past.

We know that the sudden appearance of Mexican Swine Flu (A/H1N1)virtually had to have been a release from a biological warfare lab. We know that A/H1N1 has gene sequences from three different types (American, Asian, and African) of Swine Flu, of Bird Flu, of two different types of human seasonal flu, and of Spanish Flu and that
such a recombination is so unlikely in nature as to be virtually impossible. We know that the WHO policies of not requiring a major quarantine of Mexico ensured that A/H1N1 would spread throughout the world.

We know that the current Swine Flu "Vaccine" is almost totally untested, and that the manufactures are protected from lawsuits for even deliberate acts that result in deaths and that nations acquiring the vaccines are required to sign contracts agreeing not to release negative information on the "vaccine" to the public. We know that published additives to the "vaccine" include highly dangerous-to-human-health substances.

We know that the corporate owned mainstream news media (with strong links to global banking families) have censored this story in a way that has never happen before. We know that the outbreak of a unknown but deadly and very rapidly spreading disease in Europe is the largest story on Earth but that it is NOT being reported on.

Also found at is the following:

// 13.11.2009 // 14:24 // Doctors learned why Ukrainians dying! (updated at 06:25 pm)

All victims of the virus in Bukovyna (22 people at the age of 20-40)died not from bilateral pneumonia, as was previously thought, but as a result of viral distress syndrome, i.e the total destruction of the lungs.

At first the cardio-pulmonary insufficiency comes, and consequently cardiogenic shock is developed, which causes cardiac standstill and death, told the chief of bureau of the Chernivtsi regional forensic examination, doctor of science, Professor Viktor Bachynsky, UNIAN reports.

"During a bilateral pneumonia some morphological picture is observed. As of data of deaths, there is no such morphological picture. The virus, which causes death, is very aggressive, it does not strike the trachea, but immediately gets into the lungs and causes heavy swelling and solid hemorrhage. Mixed types of parainfluenza and influenza A/N1N1 lead to this state. This is a very toxic strain, which has not yet answered to the treatment of the Ministry of Health", - said Viktor Bachinsky.

According to him, there is a need to change the treatment standards, because those which were used earlier, resulted in nothing – doctors failed to save all people infected with the virus in the reanimation.

The belt ventilators did not help also. For this reason a group of professors of Chernivtsi Medical University appealed to the Ministry of Health and National Security and Defense Council with a demand to review the standards of treatment of patients in Bukovyna. Scientists-morphologists sent to Kyiv reports, studies and analysis of critically ill patients and people who died of virus.

Viktor Bachinsky noted that the virus is extremely toxic, it is able to penetrate not only through respiratory apparatus but also through the eyes. Chernovtsy scientists recommend in any case use masks and even wear protective spectacles. An important condition to prevent deterioration of the situation is also the observance of quarantine regime.

06:19 p.m. Ministry of Health does not consider it is necessary to publish data on the number of confirmed cases of influenza pandemic in the laboratory. "Ukraine is in the A/N1N1 influenza pandemic, and now it does not matter how many of these cases will be detected, we should treat everybody equally," - said Deputy Minister of Health Vasyl Lazoryshynets at a briefing on Friday.

Vasyl Lazoryshynets also reminded that in Ukraine since the beginning of the epidemic 1,25 mn people became ill with pandemic influenza, influenza and acute respiratory diseases, including 61,000 people - over the past day, which is by 8,500 less than the previous day. 65,615 people are treated in hospital, including 392 - in the reanimation, 60 have artificial pulmonary ventilation.

Since the beginning of the epidemic in Ukraine 239 people died, including 26 people during the last day, most of them are in the Ivano-Frankivsk, Chernivtsi, Lviv and Ternopil Regions. He also said that according to the laboratory data, 14 people died of pandemic influenza, Interfax-Ukraine reports.

06:25 p.m. To date, swine flu in Ukraine is dominant, but not the only strain, said the head of mission of the World Health Organization in Ukraine Yukka Pukkila.
Yukka Pukkila said that the strain of pandemic virus is detected in 22 cases of 34 samples sent to the control laboratory, which collaborates with WHO in London.

At the same time, Yukka Pukkila stressed that, besides Californian flu in Ukraine there is a large number of varieties of acute respiratory viral diseases and many other viruses that infect the respiratory system, reports Liga.

The genocide is now on being fast tracked, as promised by the murderous cabal controlling the world: see

Thank to listeners Verne & Kenneth for this important info...

Also if you missed my show yesterday with Elizabeth Wallace, grandmother of Christian (who was murdered by his pediatrician with 6 vacs when he was already sick), you can hear the archive, for free and without commercials, at
(scroll down to 11/14/09 show). VERY IMPORTANT...especially for anyone you know who still beLIEves that vaccines promote health.

Thank you to Sheldon for these archives...

Lastly, after many people have asked me why I did not have a paypal button on my site for people to make donations, I have put one up (to left of the "baby with a needles" picture), in case any of you want to support my work.

Remember, folks, WE can stop the not be afraid! We are reaching critical mass, if we have not already done so...

Friday, November 13, 2009

“Gold Finger - A New Take On Operation Grand Slam With A Tungsten Twist”

By: Rob Kirby

“Gold Finger - A New Take On Operation Grand Slam With A Tungsten Twist”

I’ve already reported on irregular physical gold settlements which occurred in London, England back in the first week of October, 2009. Specifically, these settlements involved the intermediation of at least one Central Bank [The Bank of England] to resolve allocated settlements on behalf of J.P. Morgan and Deutsche Bank – who DID NOT have the gold bullion that they had sold short and were contracted to deliver. At the same time I reported on two other unusual occurrences:

1] - irregularities in the publication of the gold ETF - GLD’s bar list from Sept. 25 – Oct.14 where the length of the bar list went from 1,381 pages to under 200 pages and then back up to 800 or so pages.

2] - reports of 400 oz. “good delivery” bricks of gold found gutted and filled with tungsten within the confines of LBMA approved vaults in Hong Kong.

Why Tungsten?

If anyone were contemplating creating “fake” gold bars, tungsten [at roughly $10 per pound] would be the metal of choice since it has the exact same density as gold making a fake bar salted with tungsten indistinguishable from a solid gold bar by simply weighing it.

Unfortunately, there are now more sordid details to report.

When the news of tungsten “salted” gold bars in Hong Kong first surfaced, many people who I am acquainted with automatically assumed that these bars were manufactured in China – because China is generally viewed as “the knock-off capital of the world”.

Here’s what I now understand really happened:

The amount of “salted tungsten” gold bars in question was allegedly between 5,600 and 5,700 – 400 oz – good delivery bars [roughly 60 metric tonnes].

This was apparently all highly orchestrated by an extremely well financed criminal operation.

Within mere hours of this scam being identified – Chinese officials had many of the perpetrators in custody.

And here’s what the Chinese allegedly uncovered:

Roughly 15 years ago – during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] – between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day. I know folks who have copies of the original shipping docs with dates and exact weights of “tungsten” bars shipped to Ft. Knox.

The balance of this 1.3 million – 1.5 million 400 oz tungsten cache was also plated and then allegedly “sold” into the international market.

Apparently, the global market is literally “stuffed full of 400 oz salted bars”.

Makes one wonder if the Indians were smart enough to assay their 200 tonne haul from the IMF?

A Slow Motion Train Wreck, Years in the Making

An obscure news item originally published in the N.Y. Post [written by Jennifer Anderson] in late Jan. 04 has always ‘stuck in my craw’:

DA investigating NYMEX executive - Manhattan, New York, district attorney's office, Stuart Smith - Melting Pot - Brief Article – Feb. 2, 2004

A top executive at the New York Mercantile Exchange is being investigated by the Manhattan district attorney. Sources close to the exchange said that Stuart Smith, senior vice president of operations at the exchange, was served with a search warrant by the district attorney's office last week. Details of the investigation have not been disclosed, but a NYMEX spokeswoman said it was unrelated to any of the exchange's markets. She declined to comment further other than to say that charges had not been brought. A spokeswoman for the Manhattan district attorney's office also declined comment.

The offices of the Senior Vice President of Operations - NYMEX – is exactly where you would go to find the records [serial number and smelter of origin] for EVERY GOLD BAR ever PHYSICALLY settled on the exchange. They are required to keep these records. These precise records would show the lineage of all the physical gold settled on the exchange and hence "prove" that the amount of gold in question could not have possibly come from the U.S. mining operations – because the amounts in question coming from U.S. smelters would undoubtedly be vastly bigger than domestic mine production.

We never have found out what happened to poor ole Stuart Smith – after his offices were "raided" – he took administrative leave from the NYMEX and he has never been heard from since. Amazingly [or perhaps not], there never was any follow up on in the media on the original story as well as ZERO developments ever stemming from D.A. Morgenthau’s office who executed the search warrant.

Are we to believe that NYMEX offices were raided, the Sr. V.P. of operations then takes leave - all for nothing?

These revelations should provide a “new filter” through which Rothschild exiting the gold market back in 2004 begins to make a little more sense:

“LONDON, April 14, 2004 (Reuters) - NM Rothschild & Sons Ltd., the London-based unit of investment bank Rothschild [ROT.UL], will withdraw from trading commodities, including gold, in London as it reviews its operations, it said on Wednesday.”

Interestingly, GATA’s Bill Murphy speculated about this back in 2004;

“Why is Rothschild leaving the gold business at this time my colleagues and I conjectured today? Just a guess on my part, but suspect:” *SOMETHING IS AMISS. THEY KNOW A BIG GOLD SCANDAL IS COMING AND THEY WANT NO PART OF IT. …” “ROTHSCHILD WANTS OUT BEFORE THE PROVERBIAL "S" HITS THE FAN.” BILL MURPHY, LEMETROPOLE, 4-18-2004

Coincidentally [or perhaps, not?], GLD Began Trading 11/12/2004

In light of what has occurred – regarding the Gold ETF, GLD – after reviewing their prospectus yet again, it becomes pretty clear that GLD was established to purposefully deflect investment dollars away from legitimate gold pursuits and to create a stealth, cesspool / catch-all, slush-fund and a likely destination for many of these “salted tungsten bars” where they would never see the light of day – hidden behind the following legalese “shield” from the law:

Excerpt from the GLD prospectus on page 11:

Gold bars allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and, if a Basket is issued against such gold, the Trust may suffer a loss. Neither the Trustee nor the Custodian independently confirms the fineness of the gold bars allocated to the Trust in connection with the creation of a Basket. The gold bars allocated to the Trust by the Custodian may be different from the reported fineness or weight required by the LBMA’s standards for gold bars delivered in settlement of a gold trade, or the London Good Delivery Standards, the standards required by the Trust. If the Trustee nevertheless issues a Basket against such gold, and if the Custodian fails to satisfy its obligation to credit the Trust the amount of any deficiency, the Trust may suffer a loss.

The Fed Has Already Been Caught Lying

Liberty Coin’s Patrick Heller recently wrote,

Earlier this year, the Gold Anti-Trust Action Committee (GATA), filed a second Freedom of Information Act (FOIA) request with the Federal Reserve System for documents from 1990 to date having to do with gold swaps, gold swapped, or proposed gold swaps.

On Aug. 5, The Federal Reserve responded to this FOIA request by adding two more documents to those disclosed to GATA in April 2008 from the earlier FOIA request. These documents totaled 173 pages, many parts of which were redacted (covered up to omit sections of text). The Fed's response also noted that there were 137 pages of documents not disclosed that were alleged to be exempt from disclosure.

GATA appealed this determination on Aug. 20. The appeal asked for more information to substantiate the legitimacy of the claimed exemptions from disclosure and an explanation on why some documents, such as one posted on the Federal Reserve Web site that discusses gold swaps, were not included in the Aug. 5 document release.

In a Sept. 17, 2009, letter on Federal Reserve System letterhead, Federal Reserve governor Kevin M. Warsh completely denied GATA's appeal. The entire text of this letter can be examined at

The first paragraph on the third page is the most revealing. Warsh wrote, "In connection with your appeal, I have confirmed that the information withheld under exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you."

This paragraph will likely be one of the most important news stories of the year.

Though not stated in plain English, this paragraph is an admission that the Fed has in the past and may now be engaged in trading gold swaps. Warsh's letter contradicts previous Fed statements to GATA denying that it ever engaged in gold swaps during the time period between Jan. 1, 1990 and the present.

[Perhaps most importantly], this was GATA's second FOIA request to the Federal Reserve on the issue of gold swaps. The 173 pages of documents received for the 2009 FOIA request all pre-dated the 2007 FOIA request, which means they should have been released in the response to the earlier FOIA request. This establishes a likelihood that the Federal Reserve has failed to adequately search or disclose relevant documents. Further, the Fed response admitted that it had copies of relevant records that originally appeared on the Treasury Department Web site, but failed to include them in its response.

Now that Federal Reserve governor Warsh has admitted that the Fed has lied in the past about the Fed’s involvement with gold. It should now be very clear to everyone why the Fed is lying and the true nature of what they are hiding / withholding.

On Doing God’s Work

An important footnote to consider is the inter-twined-ness of the U.S. Federal Reserve and the U.S. Treasury [can anyone really tell them apart?] as well as this duopoly’s two principal agents – J.P. Morgan-Chase and Goldman Sachs. When one truly grasps the nature of these highly conflicted relationships it gives a fuller meaning to words recently uttered by Goldman head, Lloyd Blankfein, who claimed,

“I’m doing god’s work”

Does this really mean that Mr. Blankfein believes that the Federal Reserve is god? You can judge for yourself. While the Fed prints money like no one else could - except god almighty himself [or Gideon Gono, perhaps?] – I really doubt that was the intent back in 1864, when the U.S. adopted “In God We Trust” as their official motto.

And that’s my two cents worth for today.

Got [real] physical gold yet?

Rob Kirby

Wednesday, November 11, 2009

90,000 Casualties, but Who’s Counting?

by Kelley B. Vlahos, November 10, 2009

Editor’s note: This article has been updated to reflect new data on total casualties in Iraq and Afghanistan.

Veterans Day arrives tomorrow, and with it, the anticipated harvest of heartbreaking anecdotes driving the press coverage and our ever wandering attention back to less desirable realities: the disfigured but persevering hero, the homeless warrior, the unemployable sergeant, the father or son or daughter who came home a stranger and cannot be reached.

Usually, there is nothing more powerful than a personal story to pound home the cost of eight years of war overseas, but I think today there is something even more disturbing to bear.

It’s the number 89,457 [.doc].

Veterans for Common Sense
1101 Pennsylvania Avenue, SE, Washington, DC 20003
phone 202-558-4553 fax 866-714-6762

As of Nov. 9, that’s how many American casualties there were in Iraq and Afghanistan since Oct. 7, 2001, when the Afghan war officially began. That includes a tire-screeching 75,134 dead, wounded-in-action, and medically evacuated due to illness, disease, or injury in Operation Iraqi Freedom (OIF), and 14,323 and counting in Afghanistan, or Operation Enduring Freedom (OEF).

That it may sound incredible – even unreal – is understandable. Early attempts to effectively count casualties (outside of battlefield fatalities) had been in earnest, then erratic, but finally dead-ended, frustrated by the Department of Defense, which has always been loath to break down and publicize the data on a regular basis.

One stalwart has always been Veterans for Common Sense (VCS), a nonprofit advocacy group dedicated to advancing the health and readjustment of returning soldiers and veterans. They’ve been diligently aggregating the statistics over time, and thanks to their diligent Freedom of Information Act (FOIA) requests, they can provide casualty reports at a level of detail not currently seen on the DOD’s publicly accessible Web site,

If we could access the data more easily, more people would know that 196 servicemembers took their own lives while serving in Iraq between March 2003 and Oct. 31, 2009, and there were 35 such suicides in Afghanistan. (These figures, of course, do not include the skyrocketing cases of suicides among all active-duty soldiers and veterans and cases of self-inflicted injury outside both war zones.)

More people would also know that 48,871 servicemembers had to be medically evacuated from the battlefield due to hostile and non-hostile injury, disease, and other medical issues since the beginning of the Iraq War [.pdf]. As of Oct. 31, 11,080 were evacuated for the same reasons from the war zone in Afghanistan [.pdf].

What the DOD does say, is that as of Nov. 4, there were 13,880 servicemembers wounded in action in Iraq who had not returned to duty, while 2,619 had left Afghanistan under the same conditions [.pdf]. That number is climbing faster. According to the Washington Post on Oct. 31, more than 1,000 were wounded in Afghanistan in the last three months, accounting for one-third of the total American casualties in OEF overall.

Thus, the troops are coming home, but in drastically varied degrees of wholeness. In Vietnam, there was one soldier killed for every 2.6 wounded. The vast majority of soldiers are surviving their injuries today (approximately one killed in action for every 11.5 wounded in action, according to current stats for Afghanistan and Iraq), thanks to advanced body armor, better medevac transport, and mine-resistant ambush-protected vehicles. But in tens of thousands of cases, their journey has just begun.

No one should be surprised, then, to hear that some 454,000 Iraq and Afghanistan veterans have already sought medical care from the Veterans Administration (VA) when they came home. That’s 40 percent of the total OIF/OEF veteran population, which is a number that is of course in flux, considering that the war has no end and veterans have five years to apply for care after the end of their service.

As of this summer, of those veterans who sought healthcare at the VA, 45 percent were diagnosed with a mental health condition, according to VA statistics. Twenty-seven percent of these had post-traumatic stress disorder (PTSD).

Based on available resources from the DOD and research by the RAND Corporation, VCS estimates that an estimated 370,000 (or 19.5 percent of) veterans have a traumatic brain injury (TBI) thanks to the high rate of accidents, roadside bombs, and other battlefield explosions and events – plus repeated deployments – in the war. VCS also estimates that some 18.5 percent of veterans come home with PTSD.

"This is very, very serious. The numbers are… bad, OK?" said Paul Sullivan, the bulldog director of VCS. "The good news is veterans are asking for care, and it’s good care. The bad news is there is 454,000 of them."

That’s tens of thousands of men and women and affected families and communities that are all but missing from the mainstream news any other time of the year. Sullivan said this is partly the military’s fault for obfuscating the statistics and working to keep the agony of sacrifice in the shadows.

"It’s still the policy of the United States to minimize concerns about postwar health," said Sullivan. Take the issue of soldiers coming home with chronic health problems allegedly caused by the toxic open-air burn pits in theater. One look at the online discussion boards and it’s clear something over there went awry. Vets are headed to VA facilities in droves with symptoms ranging from respiratory distress to sleep apnea and irregular heart conditions, but the Pentagon still refuses to admit a connection to their wartime exposures.

"They treat it as a public relations issue, not a health issue," Sullivan said. "In our view, we are tired of the government lying, and we’re done with the PR."

Larry Scott, who runs, an invaluable daily monitor of ongoing issues affecting the 23.4 million living U.S veterans, said the 90,591 figure relating to OIF/OEF casualties is valid – and ultimately overwhelming. "People just forget, they don’t realize there is an ongoing cost of war. Whether you agree with the war or not is not the issue. We have to be ready to pay the price."

Looking at it in monetary terms – more numbers – may seem cold, but again, it puts the taxpayers’ burden into shocking perspective. Linda Bilmes and Joseph Stiglitz have identified two scenarios in their book, The Three Trillion Dollar War (2008). One scenario estimates a long-term cost of $422 billion to the federal government for veterans’ health care and disability compensation (given 1.8 million men and women deployed and troop levels falling below 55,000 by 2012). In the other scenario, the U.S. stays in Iraq and Afghanistan another eight years and 2.1 million men and women are deployed, with a price tag of $717 billion

Sullivan estimates that there are about 450,000 disability claims already filed with the VA on behalf of Iraq and Afghanistan vets, based on the official 405,000 figure announced back in February. He said there are approximately 80,000 new claims a month from veterans of all wars. As of Sept. 26, there were more than 951,217 pending claims by all veterans, including 200,679 claims pending appeal (the Veterans Benefits Administration recently reduced that number to 176,000, raising eyebrows at Sullivan’s group).

Rarely do we hear these figures over the din calling for even greater numbers of troops on the ground in Afghanistan. The generals want 40,000 or more, which would exceed the "surge" of 20,000 men and women into Iraq almost three years ago. Soldiers are finally withdrawing from that front only to be shifted to the other one for seemingly more hazardous duty.

"Where is the discussion about making sure that before we send any more troops overseas that we can take care of the veterans we already have and whether we can take care of another flood of them?" asked Sullivan.

Such discussions are indeed hard to come by. As Veterans Day nears, veterans are strangely absent, and for many of us, out of mind. Perhaps Sullivan’s question is best answered by Macy’s full-page Veterans Day sale advertisement in the Washington Post this week, featuring two well-dressed, shiny, happy, pretty people with a bugle and a drum. There are lots of numbers – 30% to 60% off storewide! – but not a veteran in sight.

Happy Veterans Day HR 2640 - The Veterans Disarmament Bill

The video below titled PTSD, Meds and the back door gun ban is a great video proving that the Democratically controlled Congress and White House want to ban gun ownership for a majority of Americans declaring a majority of Americans unfit to own a gun without a trial.

Not to be outdone by the Democrats, Conservative News outlets such as Fox News are telling conservatives to stand down on the Health Care Bill, Cap & Trade and HR 2640 saying the proposed bills that are now set for a vote in the Senate after House passage are doomed to fail. Don't buy it we need a grassroots effort of people calling and threatening Senators with there jobs if they vote Yea on any of these Bills.

Tuesday, November 10, 2009

Pelosi: Jail Time for Those Who Do Not Comply

Americans could face some major consequences for failing to maintain health insurance under the Pelosi health care bill, which was passed in Congress Saturday night.

Dave Camp (R-MI), a ranking member of the House Ways and Means Committee, has released a letter from the non-partisan Joint Committee on Taxation (JCT), outlining these consequences. Under Pelosi’s bill, failure to comply with maintaining “acceptable health insurance coverage” for individuals (or for both spouses, in the case of households with joint returns), as well as each dependent child, would result in an additional mandate tax (generally 2.5% of income). If any American decides not to maintain such insurance, and chooses not to pay the mandated tax liability, he or she will be subject to significant civil and criminal penalties.

The bill specifically states that if the federal courts find an individual has failed to maintain insurance coverage deemed acceptable by the government, and willfully refused to pay the resultant mandated tax liability, the following criminal penalties could apply:

* Section 7203 of the bill states that “misdemeanor willful failure to pay is punishable by a fine of up to $25,000 and/or imprisonment of up to one year.”

* Section 7201 of the bill states that “felony willful evasion is punishable by a fine of up to $250,000 and/or imprisonment of up to five years.”

The Congressional Budget Office (CBO) has stated that the least expensive family non-group plan would cost $15,000 in the year 2016, a monthly premium of $1,250. This means, for example, that in the case of a household whose income is $30,000 per year, and whose employer does not offer health insurance, failure to purchase the $15,000 policy would result in a mandated additional household tax of $7,500. Failure to pay this tax would result in large fines and/or prison time.

Now that this bill has passed in a narrow margin through Congress, it is up for consideration by the Senate. According to Camp, the Senate Finance Committee has worked on a bipartisan bill which considers the same mandate tax, but shields Americans who are unable to afford the $15,000 premium from the penalty of incarceration and civil liabilities. He states that Speaker Pelosi has specifically maintained the jail time provision within the language of her bill. Camp also states that there are viable alternatives to this bill, which will lower the cost of health insurance without cutting Medicare.

Monday, November 9, 2009

Fort Hood Shooting 'Oddities'

By Lori Price, Updated: 09 Nov 2009

'Three people are involved. That, by definition, means it is a conspiracy.'

CLG Exclusive: Fort Hood: 'This story stinks to high heaven.' SFC, who spent ten years at Fort Hood, comments on Ft. Hood events 09 Nov 2009 I spent 10 years at Ft Hood. There is no way this 'official' story is legitimate. No way would a room full of Combat vets allow this one shooter to get off over 100 rounds! And, it is not normal for the outside security guards to be there. They are at the MP station, and at the main gates. This means the room full of soldiers processing must have been pinned down; multiple shooters is the only plausible scenario. this sounds like MAJ Hasan has been used, and perhaps is a patsy. --SFC Donald Buswell (Retired)

* CNN: Over one hundred shots were fired in the attack. (Logic dictates that 'over one hundred shots' were not fired by a single individual, surrounded by military personnel and special police forces.)
* CNN: FBI was investigating Major Nidal Hasan six months ago.
* Curiouser and Curiouser: -Video surfaces of alleged shooter, Major Nidal Hasan, attending Homeland Security Task Force conference --Major Hasan's name appears on page 29 of The George Washington University Homeland Security Policy Institute's 'Thinking Anew—Security Priorities for the Next Administration' --Proceedings Report of the HSPI Presidential Transition Task Force - April 2008 - January 2009. The report is dated 19 May 2009.
* Numerous media accounts: Major Hasan's neighbors, medical trainers, colleagues, friends, cousin, uncle, grandfather-- even the store owner to where he bought his food -- all heap praise on Major Hasan's temperament. This appears to be psy-ops, six ways to Sunday. --LRP
* The alleged shooter received his medical degree from the military’s Uniformed Services University of the Health Sciences in Bethesda, Md., in 2001 and is a graduate of Virginia Tech. Early on Thursday, he showed no signs of worry or stress when he stopped at 7-Eleven for his daily breakfast of hash browns, said Jeannie Strickland, the store's manager. "He came in (Thursday) morning just like normal," she said, "nothing weird, nothing out of the ordinary."

Lawyer asks investigators not to question Hasan 09 Nov 2009 A lawyer for the Army psychiatrist accused in a deadly shooting spree at Fort Hood said Monday he asked investigators not to question his client and expressed doubt that the suspect would be able to get a fair trial, given the widespread attention to the case. Retired Col. John P. Galligan said he was contacted Monday by Maj. Nidal Malik Hasan's family and was headed to an Army hospital in San Antonio to meet Hasan. "Until I meet with him, it's best to say we're just going to protect all of his rights," Galligan said... Galligan questioned whether Hasan could get a fair trial in either criminal or military court, given President Barack Obama's planned visit to the base on Tuesday and public comments by the post commander, Lt. Gen. Robert Cone.

U.S. Monitored Fort Hood Suspect Before Shooting 10 Nov 2009 Intelligence agencies intercepted communications last year and this year between Maj. Nidal Malik Hasan, who is accused of shooting to death 13 people at Fort Hood, Tex., and a radical cleric in Yemen known for his incendiary anti-American teachings. But federal authorities dropped an inquiry into the matter after deciding that the messages warranted no further action, government officials said on Monday. Major Hasan’s exchanges with the cleric, Anwar al-Awlaki, once a spiritual leader at a mosque in suburban Virginia where Major Hasan worshipped, indicate that the authorities were aware of Major Hasan before last Thursday’s deadly rampage, but did nothing.

Hasan Computer Reveals No Terror Ties 09 Nov 2009 A preliminary review of the computer of Maj. Nidal Malik Hasan, the accused shooter in Thursday's rampage at Fort Hood in which 13 people were killed, has revealed no evidence of any connection to terror groups or conspirators, according to law enforcement officials. CBS News reports that an examination of the computer has revealed Hasan visited Web sites promoting radical Islamic views, but investigators have not found any e-mail communications with outside facilitators or known terrorists.

CIA Denies Report of Blocking Hasan Intel --Officials Tell CBS News Agency Isn't Withholding Information on Suspected Fort Hood Shooter 09 Nov 2009 Responding to a report that the Army psychiatrist suspected in last week's Fort Hood shootings had tried to contact people within al Qaeda - and that government intelligence agencies knew about it and are refusing to brief Congress on it - a U.S. intelligence official told CBS News that the CIA isn't withholding information from Congress. "There's no sign at this point that the CIA had collected information relevant to this case and then simply sat on it," the official told CBS News. ABC News published the report Monday morning with details that the CIA was refusing to brief the congressional committees charged with overseeing the intelligence agencies, a senior lawmaker told ABC.

Officials: U.S. Aware of Hasan Efforts to Contact 'al Qaeda' --Army Major in Fort Hood Massacre Used 'Electronic Means' to Connect with Terrorists 09 Nov 2009 U.S. intelligence agencies were aware months ago that Army Major Nidal Malik Hasan was attempting to make contact with people associated with al Qaeda [al-CIAduh], two American officials briefed on classified material in the case told ABC News. It is not known whether the intelligence agencies informed the Army that one of its officers was seeking to connect with suspected al Qaeda figures, the officials said.

Hoekstra to launch investigation into Fort Hood shooting, dubs it 'homegrown jihadism' 09 Nov 2009 A key Republican lawmaker on Monday asked that the Obama administration keep documents relevant to the Fort Hood shooting available so Congress can continue its investigation into what he called an incident of "homegrown jihadism." Rep. Pete Hoekstra (R-Insane-Mich), the ranking member of the House Intelligence Committee, sent a preservation order to the heads of the FBI, CIA, NSA and Director of National Intelligence Dennis Blair directing them to keep the documents as part of his committee's review of the attacks.

Soldier Found With 100 Pounds of C-4 Released From Jail --The ATF, FBI and Montgomery County Bomb Squad investigated the case, trying to determine whether the explosives came from Fort Campbell. 05 Nov 2009 An Army Special Forces soldier who admitted to police that he was stockpiling military-grade explosives outside his home near Fort Campbell was released from jail into the custody of his wife. U.S. Magistrate Judge Cliff Knowles gave the order releasing 25-year-old Sgt. 1st Class Timothy Ryan Richards during a detention hearing Thursday in federal court in Nashville. He was charged with possessing two unregistered automatic weapons but he has not yet entered a plea.

Soldier Arrested After C-4 Explosives, Unregistered Guns Found At Home --The explosives were found in crates. 02 Nov 2009 An Army Special Forces soldier has been arrested following the discovery of 100 pounds of explosives at his Tennessee home in Montgomery County. Timothy Ryan Richards appeared in federal court Monday in Nashville on charges of possessing two unregistered guns. Alcohol, Tobacco, Firearms and Explosives agent Eric Kehn said he expects Richards will face more charges related to the discovery of the explosives... The house is located near the Fort Campbell, Ky., Army post where the solider is based.

Fort Hood shooting suspect conscious, talking, hospital says 09 Nov 2009 Maj. Nidal Malik Hasan, the suspect in last week's mass shooting at the Fort Hood Army Post, is conscious and talking, according to a spokesman for the Army hospital where he is being treated. On Sunday, Hasan was listed in critical but stable condition and in intensive care at Brooke Army Medical Center in San Antonio, Texas.

Fort Hood shooting suspect's ties to mosque investigated --The FBI and Army are looking into whether Maj. Nidal Malik Hasan had an association with militants at the Virginia mosque where two 9/11 'hijackers' prayed, a source says. 09 Nov 2009 The FBI and the Army on Sunday were investigating whether the military psychiatrist suspected in the Ft. Hood shooting rampage had an association with militants at a mosque in Virginia or in cyberspace. A senior federal law enforcement official said there was no immediate evidence of such a link, nor of any direct connection between the suspected gunman, Army Maj. Nidal Malik Hasan, 39, and terrorist groups or individuals, either in person or online.

Are you ready? Wait for it... it's good: Fort Hood shooting: Texas army killer linked to September 11 terrorists --Major Nidal Malik Hasan worshipped at a mosque led by a radical imam said to be a "spiritual adviser" to three of the hijackers who attacked America on Sept 11, 2001. 07 Nov 2009 Hasan, the sole suspect in the ['Manchurian Candidate'-style] massacre of 13 fellow US soldiers in Texas, attended the controversial Dar al-Hijrah mosque in Great Falls, Virginia, in 2001 at the same time as two of the September 11 terrorists, The Sunday Telegraph has learnt. His mother's funeral was held there in May that year. The preacher at the time was Anwar al-Awlaki, an American-born Yemeni scholar who was banned from addressing a meeting in London by video link in August because he is accused of supporting attacks on British troops and backing terrorist organisations.

Report: Suspected Fort Hood shooter prayed at same mosque as 9/11 terrorists 08 Nov 2009 Major Nidal Malik Hasan, the U.S. Army psychiatrist accused of shooting dead 13 people and wounding 30 others in Fort Hood, Texas, prayed at the same mosque as two of the September 11 terrorists, according to a report published in the Sunday Telegraph. Hasan attended the Dar al-Hijrah mosque in Great Falls, Virginia, in 2001, at the same time as the two terrorists, and the FBI may investigate whether Hasan met them, the Telegraph reported.

U.S. Army gunman's act "impossible" - grandfather 07 Nov 2009 The grandfather of a U.S. Army psychiatrist accused of shooting dead 13 people and wounding 30 others at a base in Texas said on Saturday he found it impossible to believe his grandson had committed the act. "He is a doctor and loves the U.S." Ismail Mustafa Hamad told Reuters in an interview at his home in the Palestinian town of al-Bireh. "America made him what he is."

Army: Shooting Suspect Taken Off Ventilator --Army officials: Hasan is 'not able to converse.' 07 Nov 2009 A U.S. Army spokesman says the man authorities say went on a shooting spree at Fort Hood has been taken off a ventilator but still remains in intensive care at a military hospital. Spokesman Col. John Rossi told reporters on Saturday at Fort Hood that he is not sure if Maj. Nidal Malik Hasan is able to communicate. Hasan was shot during an exchange of gunfire during Thursday's attack. The military moved him on Friday to Brooke Medical Center in San Antonio, about 150 miles southwest of Fort Hood. Army officials have said Hasan is "not able to converse."

Nidal Malik Hasan, Suspected Fort Hood Shooter, Was Called "Camel Jockey" --Fort Hood Shooting Suspect Harassed By Others In Military and Wanted Out, Family Said 06 Nov 2009 Fort Hood shooting suspect, Major Nidal Malik Hasan, wanted out of the Army after being constantly harassed by others in the military and was called a "camel jockey," his family said. As Hasan was about to be deployed to Iraq Afghanistan, he was suffering from some of the same stresses that he was trained as an Army psychiatrist to treat. Although the 39-year-old had just been promoted to major in May, his family says he had hired a lawyer to help him get out of the Armed Forces.

Second Gunman In Custody At Army's Fort Hood -Report 06 Nov 2009 A second gunman is in custody after a shooting at the Army's Fort Hood in Texas in which at least seven people were killed and 12 wounded, reports KCEN-TV of Waco. The report comes about two hours after a first suspect was captured, shortly after gunfire broke out. Authorities say the gunmen were dressed in fatigues, though it's not confirmed whether they are military personnel. It's also not known if the victims were military personnel or civilians.

* Video: Alleged Fort Hood Shooter Major Hasan At Homeland Security Task Force conference --Hasan's name, as Task Force member, appears on page 29 of The George Washington University Homeland Security Policy Institute's 'Thinking Anew—Security Priorities for the Next Administration
* White House spokesman Robert Gibbs said earlier that officials were monitoring the incident in the Situation Room. The Department of Homeland Security said it was in the process of obtaining information.
* Alleged shooter is alive, in stable condition --General Bob Cone:
* Terror attack 'not ruled out'
* The alleged shooter graduated from Virginia Tech --His cousin, Nader Hasan, actually laughed in an interview when asked if alleged shooter, Nadal Hasan, was 'violent.' He never went to Iraq.
* Attack appears to have been carried out by multiple shooters. Two suspects are no longer in custody, but a third person has been picked up for questioned.
* Sources say Army shooting suspect was due to be deployed to Iraq
* 42 people shot by Army psychiatrist, promoted to Army Major in May. 12 killed; 30 wounded --US Official: Shooter was Major Malik Nadal Hasan
* 'The individuals arrested are all US soldiers.'

Surviving Fort Hood shooting suspect arrested at golf course, officer says Updated 2334 GMT 05 Nov 2009 A senior officer who was playing golf Thursday near Fort Hood, Texas, told CNN he witnessed the arrest of one of the two surviving suspects of the shooting at the Army installation. Shortly after the shooting, the officer said, military police told him to clear the course and he saw other MPs surround the building that held the golf carts, he said. The senior officer said he ducked into a nearby house for cover as 30 to 40 cars carrying MPs approached. He said he saw a soldier in battle-dress uniform, his hands in the air. The MPs ordered him to lie on the ground and open his uniform, presumably to ensure he was not carrying explosives, the senior officer said. He said an MP told him that authorities considered the man to be a suspect in the shootings after having overheard the man say he was with the shooter. The man was surrounded for 25 to 30 minutes, until a convoy of vehicles arrived, led by a Ford Crown Victoria and carrying men in suits, and he was taken away, the senior officer said.

Fort Hood gunman [allegedly] shouted 'Allahu Akbar' as he opened fire --Army psychiatrist remains on ventilator after rampage that killed 13 people and wounded 28 06 Nov 2009 A US army psychiatrist about to be deployed to Afghanistan allegedly shouted "Allahu Akbar", or "God is greatest", as he opened fire at a military base in Texas, killing 13 people and wounding 28. The gunman, Major Nidal Malik Hasan, 39, shouted the Arabic phrase just before he began his shooting spree at Fort Hood military installation yesterday, according to the base commander, Lieutenant General Robert Cone.

Details emerge about Fort Hood suspect's history 06 Nov 2009 Army psychiatrist Nidal Malik Hasan, suspect in the assault that killed 13 people at Fort Hood, Texas, and hurt 30, salved the emotional wounds of troops returning from war even as he objected to his own looming deployment to Afghanistan, where he was to counsel soldiers suffering from stress... Hasan recently was involved in a spat with another Fort Hood soldier residing in his apartment complex, apparently related to his Muslim beliefs. The manager of the complex, John Thompson, said the other soldier, John Van de Walker, allegedly keyed Hasan's car and also removed and tore up a bumper sticker that read "Allah is Love." Thompson said Van de Walker had been in Iraq and was upset to learn that Hasan was Muslim. A report filed with Killeen police on Aug. 16 indicates that Hasan's vehicle, a 2006 Honda Civic, had been scratched by an unknown object causing an estimated $1,000 worth of damage. The report indicates that Van de Walker, 30, was arrested on Oct. 21 and charged with criminal mischief.

Death toll rises to 13 in Ft. Hood shootings --Army officials confirmed that the alleged gunman, Maj. Nidal Malik Hasan, was due to be deployed overseas. Hasan, an Army psychiatrist, was shot by a police officer and is hospitalized. 06 Nov 2009 As authorities continue to search for clues on what prompted the shooting Thursday at Ft. Hood, the death toll rose today to 13. Twenty-eight of the 31 people injured in the attack on the nation's largest military base remain hospitalized. The alleged shooter, an Army psychiatrist who was wounded during the attack, is also hospitalized, unconscious and on a ventilator.

Officers raid Texas home of suspect in Fort Hood shootings 06 Nov 2009 Officers raided the apartment of the soldier suspected in the shootings at Fort Hood, Texas, early Friday, searching for clues as to what caused the military psychiatrist to allegedly gun down soldiers he had taken an oath to help, a police spokeswoman said. The alleged gunman, identified as Maj. Nidal Malik Hasan, opened fire at a military processing center at Fort Hood, killing 13 and wounding 30 others, Lt. Gen. Robert Cone said... In the nearby town of Killeen, a SWAT team and FBI agents were searching Hasan's apartment to help determine what caused the shooting, which military experts called the worst mass shooting at an American military base, Carol Smith, a Killeen police spokeswoman, said early Friday.

Surveillance video shows Fort Hood suspect before shootings 06 Nov 2009 An owner of a 7-Eleven convenience store in Fort Hood, Texas, said Maj. Nidal Malik Hasan came in for coffee and hashbrowns most mornings, including the day he allegedly shot dozens of soldiers. Surveillance video from the store obtained by CNN shows a man who, according to the store owner, is Hasan at the cashier's counter at about 6:20 a.m. Thursday (7:20 a.m. ET) -- about seven hours before the mass shooting. "He looked normal, came in had his hashbrowns and coffee as you see in the surveillance video," the owner told CNN. Another surveillance video from the store on Tuesday showed the man believed to be Hasan in scrubs... In 2009, Hasan he completed a fellowship in disaster and preventive psychiatry and was assigned to Darnall in July. He had been awarded the National Defense Service Medal, the Global War on Terrorism Service Medal and the Army Service Ribbon, but was never deployed outside the United States.

Motive a mystery after Fort Hood rampage --12 die; gunman remain hospitalized, despite earlier reports 06 Nov 2009 An Army psychiatrist about to be deployed to a combat zone overseas allegedly shot and killed 12 people and wounded 31 in a rampage at this sprawling military post north of Austin on Thursday afternoon. Post officials originally said that the suspected shooter -- Maj. Nidal Malik Hasan -- had been killed, but late in the day said he was wounded and in critical condition at a nearby hospital... Hasan is accused of attacking his fellow soldiers about 1:30 p.m. at the Soldier Readiness Processing Center. Armed with two pistols, he shot more than 40 people before military police and civilian police officers responded, officials said. He was wounded by a civilian policewoman, who was injured in the exchange, police said. Officials had reported earlier that the police officer had been killed. Hasan's motives were unclear, and early on Thursday, he showed no signs of worry or stress when he stopped at 7-Eleven for his daily breakfast of hash browns, said Jeannie Strickland, the store's manager. "He came in (Thursday) morning just like normal," she said, "nothing weird, nothing out of the ordinary." A few hours later, officials said, the Virginia native began his rampage on the post.

Counter-terror plans will be revised to reflect Fort Hood and Afghan attacks [Wow, that was quick!] 05 Nov 2009 (UK) A soldier turning on his comrades at Fort Hood, an Afghan policeman killing the British soldiers who trained him - two uncannily similar events in two days, but incidents which, across the Western world, security authorities have been planning for and dreading. Since the Mumbai attacks counter-terrorism planning has seen a major shift. The shootings in Afghanistan and Fort Hood carry echoes of the attacks in India with the added danger that the enemy has come from within.

AP: Authorities Had Concerns About Suspect Over Internet Postings [Wow, that was quick, too!] 05 Nov 2009 Federal law enforcement officials say the suspected Fort Hood, Texas, shooter had come to their attention at least six months ago because of Internet postings that discussed suicide bombings and other threats. The officials say the postings appeared to have been made by Maj. Nidal Malik Hasan, who was killed during the shooting incident that left least 11 others dead and 31 wounded... The officials spoke on condition of anonymity because they were not authorized to discuss the case. One of the Web postings that authorities reviewed is a blog that equates suicide bombers with a soldier throwing himself on a grenade to save the lives of his comrades.

Suspected Fort Hood gunman graduated from Virginia Tech 05 Nov 2009 The Army psychiatrist suspected of carrying a shooting rampage at Fort Hood, Texas, was born in Virginia and graduated from Virginia Tech University, where he was a member of the ROTC and earned a bachelor’s degree in biochemistry in 1997. Maj. Nidal Malik Hasan had come to the attention of authorities six months ago because of Internet postings that discussed suicide bombings and other threats, law enforcement officials said Thursday... He received his medical degree from the military’s Uniformed Services University of the Health Sciences in Bethesda, Md., in 2001. He did his internship, residency and a fellowship at Walter Reed.

Twelve dead as US soldiers go on shooting rampage at Fort Hood military base in Texas 05 Nov 2009 At least 12 people have been killed and more than 30 injured after three US soldiers went on a shooting rampage at the Fort Hood military base in Texas. The Army says one of the gunmen has been killed and two others apprehended and all of the gunmen are US soldiers. Lieutenant General Bob Cone: "A shooter opened fire. That person was killed. At this time, we are looking at 12 dead and 31 wounded. They are dispersed among the local hospitals in this area in Texas. "The shooter was killed. He was a soldier. We since then have apprehended two additional soldiers who are suspects, and I would go into the point that there were eyewitness accounts that there may have been more than one shooter." The massacre happened at a training centre on the sprawling grounds of the largest US military base in the world. One gunman was caught quickly but the others went on the run. Four police officers were shot and wounded before they were arrested. Eyewitnesses said the gunmen were dressed in military uniforms.

12 dead, 31 injured in shootings at Fort Hood --Army psychiatrist was gunman in Texas incident, military officials tell NBC 05 Nov 2009 An Army psychiatrist opened fire Thursday at Fort Hood, Texas, killing 12 people and wounding 30 others before being shot to death, officials told NBC News. Eleven of the victims died at the scene, military officials said. A 12th died later at a hospital, NBC station KCEN-TV of Waco reported.

12 Dead, 31 Wounded in Base Shootings 06 Nov 2009 At least 12 people were killed and 31 wounded Thursday afternoon in a shooting at a military installation in Fort Hood, Texas, according to military spokesmen. Lt. General Bob Cone said in Texas that the shooter was an Army soldier who opened fire in a “readiness facility.” Lt. Gen. Cone confirmed that the shooter had been killed. Two other Army soldiers were in custody as suspects. President Obama said it was "horrifying" that American soldiers would face such a situation at home.

Fort Hood death toll now at 12; gunmen were U.S. soldiers 05 Nov 2009 At least 12 people have been killed and 31 wounded in a shooting at Fort Hood Army Base near Killeen, Texas, when at least one gunmen opened fire on soldiers who were making their final deployment preparations. Lt. Gen. Bob Cone, the commander of III Corps, said that at least one gunman opened fire at the base's Soldiers Readiness Processing Center where soldiers were receiving medical and dental exams prior to deployment. The gunman's fire was returned -- Cone did not say by whom -- and the gunman was killed. Two other soldiers who may have participated in the shootings were arrested in nearby buildings, Cone said. At least one of the dead was a civilian police officer working at the base.

Fort Hood (and over 100 other .gov and .mils) is reading CLG news for updates. 5 27 156.99 KB 05 Nov 2009 - 17:14

See also:
Virginia Tech Shooting 'Oddities'
Minot AFB Clandestine Nukes 'Oddities'
Blackwater/Xe in Pakistan
CLG Pandemic Action Alerts

Friday, October 30, 2009

U.S. economic growth claims are fabricated on more debt spending

(CounterThink) – While the White House is celebrating a 3.5% reported growth in GDP last quarter — the first economic growth in a year — they conveniently forget the simple fact that it’s easy to fake economic growth with debt spending.

This so-called “growth” was really just the result of the U.S. Treasury flooding the economy with more debt-ridden “stimulus dollars” that will drive the nation even deeper into irreversible debt. That’s not genuine economic growth, it’s just really bad economic planning.

For example, if a family is living on credit card debt to buy groceries, and they’re two years behind on credit card payments, and then they suddenly take out a huge cash advance against their credit cards so they can spend even more money, that’s not “economic growth.” That’s just more stupid spending.

The U.S. government has done precisely the same thing: It’s spending money it doesn’t have, then claiming “an end to the recession” because the nearly $1 trillion in stimulus dollars did, indeed, manage to spend a lot of money and create “economic activity.” But rather than being good news, it’s actually really bad news because it’s all borrowed money.

Speaking of stupid economic ideas, $3 billion of those stimulus dollars were used to buy new cars as part of the U.S. government’s “clunkers” program. An analysis of the program reveals that taxpayers ended up paying $24,000 for each additional car sold under the scheme (…). In effect, the “cash for clunkers” program was a giant government handout to Japanese car manufacturers. Sure, it counts as economic activity (and adds to the nation’s GDP), but is it really an intelligent way to spend taxpayer dollars?

Similarly, the tiny surge in home sales was spurred by yet another government handout: The $8,000 tax credit for first-time home buyers. Although such a stimulus appears to create economic activity, it really just throws more debt money at a nation that’s already buried under so much debt that foreign investors are increasingly selling the dollar and buying other currencies.

Real economic growth requires more people having real jobs that produce real goods or services. And that’s simply not happening in America. According to Labor Department statistics, 530,000 Americans file for unemployment claims last week alone. Tens of millions are out of work, and there’s been no growth whatsoever in terms of new job openings.

The White House can cheer its fabricated 3.5% growth in GDP, but real economists know the difference between genuine economic growth and a debt spending blip. Gee, if spending more debt money is the way to prosperity, then why not just throw $100 trillion and boost the GDP by 350%?

The answer is because debt costs you money, which means this 3.5% growth in GDP is going to cost the nation probably 4% in economic punishment somewhere down the road. When it comes to economics, there’s no such thing as a free lunch, and the laws of compounding interest eventually cause every debt spending spree to come to a crashing close.

The United States of America is not immune to the laws of economics any more than you or I.

Wednesday, October 28, 2009

The War on the Dollar

Let me show you the most shocking numbers I’ve seen in my lifetime:

Up until the day Lehman Brothers collapsed in September of last year, it took the Fed 5,012 days — 13 years and 8 months — to double the cash currency and reserves in the coffers of U.S. banks.

In contrast, after the Lehman Brothers collapse, it took Bernanke’s Fed only 112 days to double the size of those reserves. He accelerated the pace of bank reserve expansion by a factor of 45 to 1. Fed's Money Printed Gone Absolutely Wild

Even the Fed’s response to the biggest emergencies of the recent past was far smaller by comparison: Before the feared Y2K crisis and after the 9/11 attacks, the Fed’s money infusions were 14 times and 25 times smaller, respectively.

Moreover, they were quickly reversed as soon as the crisis subsided.

This time, the Fed has done precisely the opposite: Despite its largest money infusion of all time in late 2008, the Fed has added still more reserves in 2009!

The end result is a massive supply of U.S. dollars, driving down their value. (See “Bernanke gone berserk.”)

And unfortunately, this is just one aspect of the U.S. government’s efforts to devalue our money, the subject of our recent webinar …

Washington’s Secret War on the Dollar:
Protect Yourself and Profit

with Martin D. Weiss and Larry Edelson
(Edited Transcript)

Martin Weiss: Welcome to our online seminar on what may well be the most urgent financial and strategic dilemma of our time — the threat to the cornerstone of our nation, the threat to the value of the U.S. dollar.

The dollar is careening toward its lowest level in history! Gold is going through the roof right now, plowing past every barrier, surging to its highest level of all time. Major oil producers all over the world are talking about abandoning the dollar as the basis for global oil contracts, right now!

Joining me today from his office in Asia is long-time Weiss Research analyst, Larry Edelson. Over the last two weeks, thousands of our readers have been joining Larry on his blog in a hot debate about the fate of the dollar.

Our readers are deeply concerned about the dollar’s current decline … how that decline could slash their wealth … and how it could impact their quality of life. They wonder when and how they will be able to save for their future, for their children and grandchildren.

They ask: Can the United States survive the decline of its currency? Could the dollar’s decline mark the end of our nation’s greatness as a world power?

And now with gold and natural resources going through the roof, they’re also asking: What should I buy today to profit from this surge?
Martin and Larry

These are not questions just for the future. They are questions we must address right now.

The dollar is already falling in value against all major currencies. The dollar’s role as a reserve currency is already being challenged in Europe, in Asia, and in the Americas. The dollar’s day of reckoning is already here.

Larry Edelson was among the very first to warn about this day. Throughout the 1980s and 1990s, he continually wrote that America’s massive debts will someday become unsustainable.

He consistently explained that the favorite debt solution of both Democrats and Republicans will be to pay off government debts with ever-cheaper dollars.

He repeatedly warned that, in a desperate attempt to escape the nation’s massive debt burden, Washington will literally declare war against the U.S. dollar!

He further warned that, step by step, international investors will abandon the U.S. dollar.

And perhaps most alarming of all, he wrote about the ultimate day of reckoning for the dollar — the day when foreign countries and international organizations will push aggressively to replace the dollar with a new reserve currency, ending America’s supremacy as a global economic power.

Now, each and every one of Larry’s forecasts is coming to pass. And now, other voices — some very prominent voices — are saying, in essence, the same thing Larry was writing years ago. We have tapped Weiss Research’s research department to compile the relevant expert comments made recently on C-Span, CNN, NBC News, Bloomberg, and other major sources. So let’s review them right here and now.


President Barack Obama has declared: “The long-term deficit and debt that we have accumulated is … unsustainable. We can’t keep on just borrowing from China or borrowing from other countries. We have to pay interest on that debt … and that means we’re mortgaging our children’s future.”

Senator Judd Gregg has shown how Washington’s favorite solution is to pay its debts with cheaper dollars. “One way to solve the debt problem,” he said, “is to … devalue the dollar and … inflate the currency. That’s the cruelest tax of all.”

Fed Chairman Ben Bernanke puts it this way: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

Jim Rogers states unequivocally: “It’s the … official policy of the central bank and the United States to … debase the currency.”

Zhou Xiaochuan, Governor of China’s Central Bank, has declared that “The costs of a dollar-dominated system to the world may have exceeded its benefits. The dollar should be replaced by a new global reserve currency.”

Even the United Nations has effectively declared war on the dollar with a new, game-changing report that recommends a new artificial reserve currency.

Martin: Larry, welcome and congratulations on your foresight! I prayed that you would be wrong. I hoped that Washington and the world would not wage this war on the dollar, that this day of reckoning would never come. But now it’s here.

I have not given up hope for the dollar or for the United States, but at the same time, I recognize that, as investors, we can’t survive on hope alone. We must be pragmatic. We have to take protective action for ourselves and our family. That’s why I’ve invited you here today, not just because you saw this coming, but more importantly, because you have helped investors convert your vision into action.

Larry Edelson: Thank you for that recognition.

Martin: What I especially want to recognize is the fact that you have demonstrated, in actual practice, that the best defense for investors is to go on the offense, to convert the dollar decline into a myriad of wealth-building opportunities. We’ll talk about some of those later. Plus, before we finish today, I trust you will be giving us specific, actionable recommendations.

Larry: Yes, I will, and I will also tell you when.

Martin: Which brings me to a fundamental timing question: All the debts the United States has today have been built up over many years. All the trends we are seeing today have been decades in the making. So I ask you: Why is this suddenly a crisis now?

Larry: These years of dollar decline you’ve seen so far are merely the prelude — the build-up — to the day of reckoning for the dollar … to the convergence of events we are now seeing today.

Martin: Show us precisely why.

Larry: Because of the convergence of four factors. First, we no longer have merely a mountain of debts. We have a volcanic eruption of debts. You saw that eruption in the form of a massive financial crisis which swept the globe just months ago. And now, you are seeing that same eruption in a different form.
Worst Deficit of All Time

Martin: In the explosion of the U.S. federal deficit!

Larry: Yes, if the U.S. federal deficit were growing by 20 percent or 30 percent or even as much as 50 percent, the pundits could have argued that it was just the continuation of a long-term trend, that it was simply more of the same.

But just in the last 12 months, the U.S. federal deficit has exploded from $454.8 billion in fiscal 2008 to $1.4 trillion in fiscal 2009.*

This year’s deficit is over three times last year’s level — and last year’s deficit was already the largest in history, in dollar terms.

Martin: That’s not just more of the same.

Larry: No, it’s a whole different ball game, a clear break with the past. That’s the first major change. Second, we’re witnessing a sea change in the global economy.

Martin: The power shift from West to East that we talked about in the Weiss Global Forum …

Larry: … which is now being reflected in the all-critical shift out of the dollar as the world’s reserve currency. Put yourself in the shoes of an international investor. Even if you can choose the right dollar investment, the falling dollar is slashing your returns. You’re fed up. You’re anxious to diversify out of the dollar. But you’re not the only one.

Central banks are doing the same. Remember: The U.S. dollar is not only the money we keep in our bank accounts or carry around in our pockets; it has also been the money foreign central banks keep in their reserves.

Martin: The dollar has been the world’s dominant reserve currency.

Larry: Exactly. Which means the world has had to take our dollars whether they liked it or not. They had no other choice. So that gave us a huge strategic advantage as a nation. Unlike all other nations, we were shielded from the consequences of our follies. We could postpone our day of reckoning. We could party, binge, and abuse … yet never suffer a hangover or side effects.

Now, that protective shield is melting away. Now, we face the danger that all our past excesses could come crashing down on us in one fell swoop. You can see that clearly in what the world’s experts are saying and what the world’s leaders are doing … as you so vividly demonstrated a moment ago. You can see it even more clearly in the dollar’s decline in currency markets.

Martin: You’ve cited two critical factors pointing to a dollar decline: the explosion in U.S. debt and, at the same time, the global shift away from the dollar by investors and central banks. But there are other forces …

Larry: Force #3 is the dollar cycle. Our work with the Foundation for the Study of Cycles, based on centuries of data, leads to the conclusion that the dollar won’t hit bottom until the end of 2012. That’s three more years of potentially traumatic declines.

Factor #4 is the hidden debts that could suddenly burst onto the scene and destabilize financial markets.

Martin: Can you be more specific?

Larry: Everyone talks about our debts to Japan or to China. But our foreign debts go far beyond that. According to the U.S. Treasury Department, our total liabilities to foreigners are now $7.9 trillion — not just to countries like China and Japan, but also to Eurozone and Latin America… not just to central banks, but also to private companies and individuals. It’s a massive mountain of foreign debts that everyone just takes for granted.

Another, even larger example of hidden debts is the true obligations of the U.S. government.

Martin: When experts talk about the “national debt,” they are referring exclusively to funded debts — the debts for which the U.S. has issued securities like Treasury bonds or agency bonds.

Larry: But there again, the problem goes far beyond that. In addition to the gargantuan funded debts you see on the government’s balance sheet, Washington has another $104 trillion in unfunded obligations.

Martin: Social Security, Medicare, Medicaid, Veteran’s benefits, government pensions.

Larry: Correct. And to make matters worse, the first wave of Baby Boomers are turning 63 this year. Washington is going to have to begin paying out that money starting now!

Martin: This helps explain why Washington is now doing something that, on the face of it, seems to be patently insane: trying to spend, borrow, and print its way out of a debt disaster.

Larry: And why I see a convergence of forces toppling the dollar. It all comes down to what President Obama himself admitted: The debts our country has racked up are unsustainable. Or more to the point, they are patently unpayable. It will simply be impossible for our government to ever get out of debt by any conventional means.

Martin: But do you really believe the government is going to take radical measures to make the debts go away?

Larry: Why is that so surprising? Haven’t they already taken radical steps — steps that no one would have ever imagined possible just a few years ago? Look at how they bailed out Bank of America, Citigroup, Merrill Lynch, and AIG. Look at the trillions they poured out in loans, investments, and credit guarantees. Look how they’ve given the Fed new superpowers.

Martin: But now Mr. Bernanke and Mr. Geithner are claiming victory. They’re saying that the crisis is over and that all those extraordinary measures were a necessary evil.

Larry: They have indeed eased the debt crisis, but only by creating still another crisis — the dollar crisis, which is just beginning. Yet they haven’t made a dent in the mammoth problem that gave rise to the crisis in the first place —overwhelming, burdensome debts. All told, each and every household in America is now indirectly responsible for over $1 million in government debts and obligations.

We’ve got the officially recognized national debt at $11.8 trillion … unfunded national obligations of $104 trillion … another $9 trillion in cumulative deficits over the next 10 years … plus another trillion dollars for health care reform, no matter what bill finally makes it through Congress. Grand total: $125.8 trillion.

Imagine the government could somehow pay off that debt at the rate of $100 million per day, every day starting right now. Even at that rate, it would take 3,446 years before the total government debts and obligations are paid off …

Martin: … assuming no new government spending, no new social programs, no new wars, no new economic disasters or bailouts, no new deficits in the meantime …

Larry: … which, as we know, is a pipe dream. Even the White House admits we’re looking down the barrel of one-trillion-dollar deficits for years to come. That’s why I say that, no matter how you look at it, this debt mountain is patently unpayable. It will never be paid off, other than through some form of default.

Martin: Could you explain that please?

Larry: There are two ways a government can default on its obligations: The first way is simply to stop paying its bills and obligations. That’s highly unlikely, for obvious reasons. The second is to default on the sly — by paying off creditors with cheaper dollars, dollars that have less buying power.

But this is not just theory. It’s practice. And the idea of debasing the currency in order to delay a debt collapse certainly was not invented by Washington. Time after time, history shows us that when a government cannot print money fast enough to overcome its exploding debt burden, it has no choice but to take more drastic steps to slash the value of its money.

Martin: Let’s take a quick peek at that history.

Announcer: Since the dawn of civilization, every major nation that has been saddled with unpayable debts and obligations has ultimately resorted to currency devaluations in some form.

In ancient Rome, the Roman denarius was the dominant currency not only of the Roman Empire but even beyond its borders. But when Rome began to fall, so did its currency.

From its heights in the fourth century A.D., the Roman denarius plunged to 1/50 of its former value — in just 13 short years … and then ceased to exist.

Later, during the Byzantine Empire, their money was, in many aspects, the world’s reserve currency for 1,000 years. But in the 12th century, when the empire began to suffer under the weight of overwhelming, unpayable debts and obligations, it was also devalued by reducing its gold content until it effectively ceased to exist in the 14th century.

More recently, the fate of the British Empire and the fate of the British pound were also intertwined. In the late 19th century, London devalued pound sterling and then did it again in the early 20th century. From its heyday at the height of the Empire to its low point in recent years, the pound ultimately gave up 80 percent of its value.

So you can see that this is a well chartered path: The rise and fall of empires; the rise and fall of their currencies. What is most alarming, though, is what happens when countries lose all semblance of discipline and when they are ultimately punished by market panics.

In Germany after World War I, the government printed money in massive quantities to repay war loans and reparations with worthless currency — and to help industrialists to pay back their own loans. The reichsmark plunged from 4.2 to the U.S. dollar at the outbreak of World War I to 1 million per dollar by August 1923 … and then to as low as three trillion to 1 in the final panic before the rise of the Nazi regime.

Larry: Now let’s look at the current era: In the past 10 years, the dollar has progressively lost 36 percent of its value against other major currencies and 75 percent of its value against gold. And in the years to come, it’s bound to lose much more. I repeat: A wholesale currency devaluation is the only politically expedient way to address a debt crisis as massive as we face today. Bush, Obama, and Bernanke have already committed us to this path.

Martin: Can you give us evidence of that?

Larry: Evidence? Are you kidding? Look at last year when the U.S. economy was threatened by systemic risk from the credit crisis. Bush and Bernanke were faced with two simple choices: Either to step aside and allow a sudden, savage depression … or to spend countless sums that the government didn’t have — that it would have to borrow and print, that would almost surely lead to a future erosion in the value of our money. They chose the latter. They chose to sacrifice our future for the expedience of the present.

And this year, when faced with similar choices, the Obama team did the same. They spent hundreds of billions of TARP money. They passed a second stimulus bill AND a $300 billion omnibus spending bill. And then, just for good measure, they bailed out the automakers.

There’s your evidence: Two very different presidents — one, Republican, one Democrat — choosing the same path, the only politically viable path, the easy way out.

Both presidents chose to fight the impending depression by borrowing and printing money … while both knew full well that this has set us up for what could be an even more devastating future crisis — the crisis of the dollar, the crisis of inflation.

Martin: Which is actually worse in some respects, isn’t it?

Larry: This isn’t just an economic discussion we’re having here. It has real and dramatic consequences for everybody listening to us right now. When the value of a nation’s currency falls by half, its people’s money goes only half as far; their cost of living doubles.

When a currency falls 70 percent, 80 percent, 90 percent, or more as in the examples we just looked at, the people who earn it have to pay up to 10 times more for many of life’s necessities — food, energy, and more.

The saddest victims are folks on fixed incomes, who worked, scrimped, and saved for a lifetime to ensure they’d have enough to live on in retirement. Suddenly, the nest egg they thought would provide a comfortable life is barely enough to keep body and soul together.

Any way you look at it, this kind of currency devaluation is like government-sponsored theft.

Martin: Like a burglar who slips undetected into your home and picks up your spare change — every night, 7 days a week, 365 days a year.

Larry: Unfortunately, the majority of savers and investors don’t have a clue. They don’t believe it can happen … that it is happening right now. John Maynard Keynes said it all 79 years ago: “By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose.”

In public, Washington will never admit to it, but both President Obama and Fed Chairman Bernanke are actively waging their secret war on the dollar right now as we speak. And as an investor, you have no choice but to take defensive steps starting immediately.

Martin: Name those steps.

Larry: Step one, at a bare minimum, I believe that everyone should put 10 percent of their investment portfolio in gold and gold-related securities.

Martin: And how much would be too much?

Larry: Even if you want to be aggressive, I would not go beyond 25 percent. There are too many other contra-dollar opportunities you’d be missing.

Martin: Suppose I have, say, $500,000 in stocks, bonds, and other liquid investments. Please give me a more precise breakdown.

Larry: Each investor needs to take a look at his or her individual investment needs. There’s no such thing as a one-size-fits-all portfolio. But let’s assume the 10 percent.

You’d have $50,000 in the gold sector. Of that $50,000, I’d put about $3,100 in bullion, in ingots, or in bullion coins like the American Eagle or Canadian Maple Leaf. Given the storage hassles and costs, there’s no need to put more than that in bullion.

I’d put another $3,100 into the SPDR Gold Trust ETF, symbol GLD, and another $3,100 into each of three favorite gold mutual funds: the Tocqueville Gold Fund (TGLDX), the U.S. Global Investors World Precious Minerals Fund (UNWPX), and the U.S. Global Investors Gold and Precious Metals Fund (USERX). Then, I’d put the rest into my top-rated gold mining shares.

Martin: How high do you think gold could go?

Larry: I have three gold price scenarios. First, I believe that, no matter what, gold is going to hit its inflation-adjusted high of $2,300 an ounce — at a minimum. But that assumes an orderly decline in the dollar and an orderly process of phasing in a new world reserve currency of some kind.

In scenario two, that process is more chaotic and muddied, with rising global uncertainty regarding the outcome. In that scenario, despite sharp pullbacks, you could see gold reaching $3,000 an ounce.

Martin: Many people think $1,000 an ounce is already very high.

Larry: Adjusted for inflation, gold at $1,000 per ounce is actually selling at less than half its all-time high. Moreover, at $1,000 an ounce, gold investors are banking on an orderly transition to a new reserve currency over many years. That’s highly unlikely, in my opinion.

In scenario three, markets take over, panic sets in, and investors lose any semblance of trust in process of transitioning to a new reserve currency.

Martin: How far do you think gold could go in that scenario?

Larry: In that scenario, all bets are off! The dollar could overshoot dramatically to the downside, while gold and other natural resources could overshoot dramatically to the upside. I wouldn’t be shocked to see $5,000 an ounce for gold.

So in my lowest scenario for gold prices, I think your bullion has the potential to double. And in a worst-case scenario for the dollar, you could be looking at a 5-to-1 gain on your bullion positions.

Martin: All this is about step 1, investing in gold. What about step 2?

Larry: Step 2 is to diversify beyond gold to other natural resources. Washington’s war on the dollar will drive up a wide range of tangible assets — and companies backed by those assets. Assets that have intrinsic value and assets where the dollar crisis is manifesting itself!

Look, over the last decade we’ve seen tech companies go bust. We’ve seen the leveraged mortgage markets go bust. And we’ve seen the financial sector collapse. So savvy money now wants tangible assets and resources that provide the world with the basic necessities of life. It’s where people like Jimmy Rogers are investing. It’s where surviving hedge funds are going. And most important in my opinion, it’s where the giant sovereign wealth funds are shifting a lot of their money, especially China’s.

That gives you a double tailwind to propel your investments: Resource companies propelled higher by (a) the falling dollar and (b) the demand from China and other Asian countries.

Already, Beijing has quadrupled its gold reserves. And already, Beijing is gobbling up copper like there’s no tomorrow. China is buying oil and oil reserves, cutting deals left and right all over the world, scooping up natural resource companies and investments. It’s not just a strategic ploy to secure supplies. It’s also a hedge against the decline of the dollar.

Martin: And this is having an impact on commodity prices.

Larry: A huge impact! Beijing has $2.14 trillion of cash in the kitty, and most of that cash is now in dollars, which are falling. They cannot liquidate those investments all at once. But they can shift progressively over time. At the same time, China desperately needs those natural resource supplies to feed its rapidly growing economy and the rising lifestyles of 1.3 billion people.

Martin: In our Weiss Global Forum, you talked about the huge growth in China’s acquisition deals. Can you run through that again briefly for those who missed the Forum?

Larry: In 2002, China made only one deal; In 2003, 2 deals; 2004, 3 deals; 2005, 11 deals. In 2006, that more than doubled — to 25 deals; 2007, 33 deals; 2008, 53 deals.

And not only are there more deals, but the average value of each deal is growing by leaps and bounds. These figures also include related companies, like railroads that ship resources.

And they’re being done all over the world — in Brazil, Peru, Venezuela, Australia, Africa, you name it. And in virtually all commodities — from oil to soybeans, copper to lumber … from rubber, wheat, and corn to timber.

Make no mistake about this: The combination of the disappearing dollar and the huge demand for natural resources from Asia is unlike anything this planet has ever seen before.

And it is a key reason copper has surged 94.6 percent this year … oil has roughly doubled from its lows in January of this year … sugar has exploded higher, up over 70 percent … even cocoa is jumping, up over 30 percent this year.

Martin: Step three?

Larry: For funds you can afford to risk, use leverage. The more leverage you use, the more you can make …

Martin: And the more you can lose!

Larry: Of course, but if you use leverage carefully, that relatively small amount invested can potentially multiply your returns many fold.

Martin: Please give us some specific examples.

Larry: First, use no leverage whatsoever, just sitting in bullion. I am aiming for a minimum gain of about 130 percent — from $1,000 per ounce to $2,300 per ounce. Any gold you can buy for less than $1,000, consider it a bargain. That’s the first tier of your strategy — long term with leverage.

Martin: And the second tier of the strategy?

Larry: The second tier is to use the moderate leverage that’s inherent in most resource stocks. In gold mining companies, for example, you take advantage of the reserves they own, the profits they stand to make, and the fact that those profits can rise a lot faster than the price of bullion itself. No guarantees, but I think with the gold mining shares, you have the opportunity to multiply that 130 percent gain three or four times over.

Martin: For those not familiar with this, explain why the shares are more leveraged than the natural resource itself.

Larry: Say the company’s cost of mining gold is $400 per ounce. And say gold is selling for $500. What’s their profit?

Martin: $100 per ounce.

Larry: Now say gold goes up 10 percent to $550 per ounce. How much is their profit now?

Martin: $150 per ounce.

Larry: So there you have it. Price of gold — up 10 percent. Profit — up from $100 to $150, or 50 percent. For each 10 percent rise in the price of gold, the company’s earnings are rising 50 percent. That’s effectively five times leverage.

Martin: Larry, you are the founder and editor of the Real Wealth Report. And in your Real Wealth Report, you recommend a wide variety of resource investments. So beyond just citing a few examples, we have gone to our research department to compile your entire track record for the year, including all the losers. Do you have that for us?

Larry: Yes. Here are all the trades this year as of September 29.
Larry Edelson

Martin: Let’s have a look at this. In the first one, Company “A,” you have a loss of 18 percent. Then I see a series of small losers and small winners. But starting with Company “L,” it looks like you have had some excellent performance.

A 40 percent gain with Company “L.” A 127 percent gain with Company “M.” Company “N” — 152 percent gain. Then some smaller gains and small losses, but as we go down towards the bottom of the list, some more nice winners — 35 percent gain, 48 percent gain, 196 percent gain. And these are strictly with natural resource companies, correct?

Larry: Strictly their stocks, without any leverage — except the natural leverage that comes with stocks we talked about earlier.

Martin: A few important warnings I’d like to point out here. First, as with any stock market investing, there’s a risk of loss.

Larry: Yes, and if you cannot tolerate that, you should not buy stocks.

Martin: Second, if you’re playing this market strictly for the upside and it takes a big dump to the downside, you will see losers.

Larry: Yes, that can and does happen. My goal is to ride the great bear market in the dollar and its natural corollary, the great bull market in natural resources.

Martin: So if we get big downside moves in natural resources, you’re going to lose money in this strategy. And if that bull market continues as you expect …

Larry: I believe you’ll see a flood of double- and even triple-digit gains.

Martin: What do you do to protect your capital?

Larry: My entire point today is that if your capital is denominated exclusively in U.S. dollars and it does not include a strategy for protection against the falling dollar … you may be preserving it in name only. To truly preserve your capital and its purchasing power, you may decide you need to go on the offensive with this kind of strategy. Just like China is.

Martin: You haven’t really answered my question, though, about capital preservation.

Larry: I use very tight stop losses on nearly all my stock trades. Plus, one of the best ways to reduce risk is to diversify the instruments you’re investing in — not just individual stocks, but also mutual funds … not just ETFs on resources, but also ETFS on resource stocks … not just resource companies based in North America, but also resource companies all over the world … and sometimes, when needed, not just stocks that benefit from rising resource prices, but also stocks that benefit from falling resource prices.

Martin: Larry, I can see why you’re so enthusiastic. Gold has busted through the $1,035 barrier; and now there’s nothing on the charts — and nothing in the real world — that can stop it from exploding higher. Other natural resources are surging in tandem and the companies that produce them are rising even faster.

Just in one day this week, on a day that gold surged about 2 percent, resource shares surged 8 percent and more — all between the opening bell and the closing bell in one single trading day.

So thank you, Larry. I appreciate your enthusiasm. Your timing in presenting this seminar couldn’t be better. And I’m sure everyone is anxious to see your next recommendations.

And thank you, our members, for joining us today. This could be a frightening turning point in our history. But I trust that, with Larry’s help and with the help of the entire Weiss Research team, you can avoid the dangers — and profit — as Washington wages its secret war on the dollar.

* The Treasury Department estimated the 2009 federal deficit at $1.58 trillion, but subsequently used accounting maneuvers to close the fiscal year with a deficit of $1.4 trillion.

See full trans script of the interview at