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

Sunday, October 25, 2009

Jim Condit - The Final Solution to Adolf Hitler (Adolph Hitler)

"The Zionists brought us to the Holocaust. It is well known that it was possible to redeem Jews from the Nazis with money, and save many hundreds of thousands of Jews in Hungary...THE ZIONIST LEADERS WHO NOW SIT IN GOVERNMENT PREVENTED IT!" -- Rabbi Shlomo Zalman Ehrenreich (circa 1954) To the billions of people around the world who know only the standard Establishment version of 20th Century history, the above quotation is incomprehensible, its implications impossible to fathom. Adolf Hitler and the Nazis were the sworn enemies of all Jews, they will say, and to suggest there could be any collusion between Zionists and Hitler's Third Reich is both beyond belief and a slap at the memory of those who died at the hands of Nazi persecutors. Incomprehensible, perhaps, but by no means impossible. The Zionist-Nazi collaboration, however suppressed it has been to the general public, is a little-known, but crucial, part of European history, one that continues to profoundly shape and affect world events in the 21st Century. This mind-boggling voyage is but one of many facts which have been compiled and collated, and which is presented in this DVD by Jim Condit Jr. in this fascinating new DVD entitled The Final Solution to Adolf Hitler. This thorough analysis examines Hitler's career and influence, from his humble beginning in Austria to his appointment as German Chancellor by President Paul von Hindenburg, from his ascent to absolute dictator of the Third Reich to his role in bringing about the modern state of Israel and the emerging world government

Friday, October 23, 2009

Fall of the Republic

Fall Of The Republic documents how an offshore corporate cartel is bankrupting the US economy by design. Leaders are now declaring that world government has arrived and that the dollar will be replaced by a new global currency.

President Obama has brazenly violated Article 1 Section 9 of the US Constitution by seating himself at the head of United Nations' Security Council, thus becoming the first US president to chair the world body.

A scientific dictatorship is in its final stages of completion, and laws protecting basic human rights are being abolished worldwide; an iron curtain of high-tech tyranny is now descending over the planet.

A worldwide regime controlled by an unelected corporate elite is implementing a planetary carbon tax system that will dominate all human activity and establish a system of neo-feudal slavery.

The image makers have carefully packaged Obama as the world's savior; he is the Trojan Horse manufactured to pacify the people just long enough for the globalists to complete their master plan.

This film reveals the architecture of the New World Order and what the power elite have in store for humanity. More importantly it communicates how We The People can retake control of our government, turn the criminal tide and bring the tyrants to justice.

Wednesday, October 21, 2009

Global Warming Dooms day cults don't want you to see this

America’s Climate Security Act, red flag Lieberman introduced it.

Global warming hype has brought us this nicely dressed monster. Sure we should limit pollution and support alternative energy but that is not what this bill does.

We should be very pro-environment but I am skeptical of anything coming from Joe Lieberman so I got a copy of the Bill first. Sometimes things are named one way yet do something else like the Patriot Act. So here is the copy of the Bill S.2191

Bernie Sanders the other actual Independent of VT did try to amend the bill. New Jersey Democrat Frank Lautenberg also supported Sanders. They wanted to "strengthen the auction of pollution allocations, lower the cap on emissions, earmark subsidies for renewable energies, demand accountability from the auto industry, and diminish industry's capacity to stall simply by buying carbon offsets." "strengthen the auction of pollution allocations, lower the cap on emissions, earmark subsidies for renewable energies, demand accountability from the auto industry, and diminish industry's capacity to stall simply by buying carbon offsets." but that failed.

Although the bill states it purposes on limiting greenhouse gas emissions it also creates a Federal body able to regulate a multitude of businesses from farming to enterprise. Look at SEC. 2101-2 of the bill. It allows people to Sell their emission allowances.

Except as otherwise provided in this Act, the lawful holder of an emission allowance may sell, exchange, transfer, submit for compliance in accordance with section 1202, or retire the emission allowance.

The privilege of purchasing, holding, selling, exchanging, and retiring emission allowances shall not be restricted to the owners and operators of covered facilities.
And SEC. 2303 allows third party to collect interest payment on it! ???


For each borrowed emission allowance submitted in partial satisfaction of the compliance obligation under subsection 1202(a) for a particular calendar year (referred to in this section as the `use year'), the number of emission allowances that the owner or operator is required to submit under section 1202(a) for the year from which the borrowed emission allowance was taken (referred to in this section as the `source year') shall be increased by an amount equal to the product obtained by multiplying--

(1) 1.1; and

(2) the number of years beginning after the use year and before the source year.

The potential problem here. Let's just look at farming sense it is familiar and easy to understand. What we could have here is a new federal business here where by larger agribusinesses can buy up emission allowances from the smaller corporations who aren't going to use theirs for anything but selling. And increase in federal farm subsidies to the buyers just means we will be paying for these trades through taxes and all it does is rope in even the smaller formerly more independent farms and ranches into an umbrella corporation. The large farm loses nothing as it can pay for what it borrows with money it gets from the government anyway. The small business will gamble with cost efficiency of whether to produce or just sell their gas allowances thus giving the larger corps a greater monopoly of not only production but the distribution as well. And that spills into to mean business.

With out the Saunders amendments this bill doesn't work. Lieberman has created a federal business. I want caps on gas emissions but not at this price. We got to close these loop holes before it goes through. I'll thank Warner but I am going to write him to reconsider the amendments. He was not there after all when they voted for health reasons. His vote was only by proxy. That puts us in a position as Virginians to raise the proper objection to the bill that already passed and possible reform it or add on the Amendments or threaten to kill it.

After this corporate gambit they will throw in a carbon tax for the consumer as well.

Monday, October 19, 2009

Truth About 2009 Gaza Massacre

With the United Nations now acknowledging that Israel's actions in Gaza amounted to war crimes, Obama's video statements of unquestioning support for Israel are in essence a confession that he too is a war criminal. Please forward and repost this everywhere!

Saturday, October 17, 2009

You Won't See This In The News

You Won't See This In The News-Part 1

Introduction to the secret agenda to create totalitarian world government; why the bankers bought out the major newspapers in 1915 and how they used this buyout and the sinking of the Lusitania to get the United States into World War I; how the Council on Foreign Relations (CFR) acts as a shadow government by putting people in positions of influence to promote its world government agenda; video of Vice President Cheney at a CFR meeting admitting keeping his CFR membership hidden from voters. Introduction to the Bilderberg Group and why it is extremely secretive; how the Bilderbergs and the CFR maintain control of the mainstream media and national policy as major tools for building world government.

You Won't See This In The News-Part 2

Rick and Dick discuss the evidence of world government and show how the European Union is a model of the totalitarian suprastate planned for North America; they demonstrate how free trade agreements such as NAFTA, along with the U.S. government’s deliberate refusal to enforce immigration law and promotion of amnesty, are being used to help create a de facto NAU. Included is a clip of the Manitoba legislative assembly that proves the plan to build trade corridors such as the NAFTA Superhighway. Rick and Dick also expose treasonous actions by American politicians such as Rudy Guiliani and governor Rick Perry selling out their country and the media complicity in these schemes and tricks to keep the people ignorant of these plans. Also discussed is the secret Security and Prosperity Partnership (SPP) meeting in Montebello, Canada in 2007 that was not covered by U.S. media and where President Bush refused to answer questions about the NAU from a Canadian reporter.

You Won't See This In The News part 3

Rick and Dick discuss the evidence of world government and show how the European Union is a model of the totalitarian suprastate planned for North America; they demonstrate how free trade agreements such as NAFTA, along with the U.S. government's deliberate refusal to enforce immigration law and promotion of amnesty, are being used to help create a de facto NAU..

Included is a clip of the Manitoba legislative assembly that proves the plan to build trade corridors such as the NAFTA Superhighway. Rick and Dick also expose treasonous actions by American politicians such as Rudy Guiliani and governor Rick Perry selling out their country and the media complicity in these schemes and tricks to keep the people ignorant of these plans. Also discussed is the secret Security and Prosperity Partnership (SPP) meeting in Montebello, Canada in 2007 that was not covered by U.S. media and where President Bush refused to answer questions about the NAU from a Canadian reporter.

You Won't See This In The News-Part 4

What Can You Do? With Rick and Dick - The Campaign to Take Back Our Country - Distribute FREELY and WIDELY

You Won't See This In The News-Part 5

A 30-minute version of Alex Jones’ interview with Aaron Russo, whose “America: From Freedom to Fascism” was seen by millions on the Internet and in movie theatres. Russo discusses his former friendship with Nick Rockefeller, during which Rockefeller told him of the 9-11 attacks 10 months before they occurred, about the war in Iraq several years before it happened, and about the plan to subjugate the people of the earth to a one-world government under the control of a small group of elitists like the Rockefellers.

Friday, October 16, 2009

UN body okays Goldstone Gaza report accusing Israel of war crimes

South African jurist Richard Goldstone, who headed a United Nations investigation into the conduct of Israel and the Palestinian group Hamas during Israel's offensive in Gaza last winter, criticized on Friday the United Nations Human Rights Council's decision to endorse the report his commission had compiled.

The council on Friday endorsed the report, which accused both Israel and the militant group Hamas of committing war crimes during the December-January conflict in Gaza.

Goldstone told the Swiss newspaper Le Temps before the vote that the wording of the resolution was unfortunate because it included only censure of Israel. He voiced hope that the Human Rights Council would alter the wording of the draft.

In a special session Friday, 25 of the Human Rights Council's members voted in favor of the resolution that chastised Israel for failing to cooperate with the UN mission led by Goldstone. Another six voted against and 11 abstained.

The resolution agreed to in Geneva calls for the UN General Assembly to consider the Goldstone report and for UN Secretary-General Ban Ki-moon to report back to the Human Rights Council on Israel's adherence to it.

The report calls for the UN Security Council to refer the matter to the International Criminal Court in the Hague if the Israelis or Palestinians fail to investigate the alleged abuses perpetrated.

The countries that voted against the report included the U.S., Italy, Holland, Hungary, Slovakia and Ukraine.

China, Russia, Egypt, India, Jordan, Pakistan, South Africa, Argentina, Bahrain, Bangladesh, Bolivia, Ghana, Indonesia, Djibouti, Liberia, Qatar, Senegal, Brazil, Mauritius, Nicaragua and Nigeria voted in favor of the report.

The abstaining countries included Bosnia, Burkina-Faso, Cameron, Gabon, Japan, Mexico, Norway, Belgium, South Korea, Slovenia and Uruguay.
Madagascar and Kyrgyzstan were not present during the vote.

"This resolution goes far beyond even the initial scope of the Goldstone report into a discussion of elements that should be resolved in the context of permanent status negotiations between the Palestinians and the Israelis," U.S. envoy to the UN Douglas Griffiths said, when explaining why his country was voting against the document.

The U.S. has said the report was unfair toward Israel, something Goldstone repeatedly denied, noting he investigated all sides of the conflict.

France called on Friday to delay the UN Human Rights Council vote in Geneva regarding the adoption of the Goldstone Gaza report by half an hour in a last-minute attempt to lobby allies to reject the report's findings.

The French delegates joined Prime Minister Benjamin Netanyahu's recent diplomatic attempts to lobby European counterparts, including Holland, Spain and Denmark, to back Israel's rejection of the report's findings.

In a special session, 25 of the body's members voted in favor of the resolution that chastised Israel for failing to cooperate with the UN mission led by South African jurist Richard Goldstone...What was media covering during this special session at the United Nations, oh yes the hoax story of OH MY GAWD LOOK AT THE BOY IN THE RUN AWAY BALLOON!!!!!!!!!

Folks, there is zero coverage of this on ABCNNBBCBSFOX that I have been able to find. I even went to the FOX News website and used their own search engine and found nothing reported about this. Meanwhile, the TV network news is still going gaga over the UFO balloon hoax from yesterday.

So, I am calling on all the "Rangers" (Free Range Human Beings; that means YOU!) to take this article, or indeed any articles about the United Nations Human Rights Council endorsing the Goldstone Report on Israel's war crimes and send it to your friends, post it in your social networking sites, blogs, anywhere.

Israel knows that the US will obediently veto the Goldstone Report before it goes to the Hague, so now they are trying to limit the PR damage by ordering the servile US media to ignore the story entirely. We, on the other hand, have the means to make sure the general public is aware of this report of Israel's war crimes and its endorsement by the UNHRC, which will not only serve to bring the world's condemnation down on Israel, but further embarrass the United States when they exercise their Security Council veto.

So, Rangers, man your keyboards! Do not wait for orders, but grab thy laptop and ride towards the sound of ... bovine excrement!"

Thursday, October 15, 2009

1929 And Today - Sobering Parallels Abound

When was the last time you saw stocks decline 54% followed by a 55% rally?

When was the last time you saw stocks (NYSEArca: VTI - News), bonds (NYSEArca:
AGG) and commodities (NYSEArca: DBC - News) move in sync for nearly two years?

When was the last time asset allocation did not really provide the diversification and protection it was supposed to?

When was the last time, a ten year investment in the stock market delivered negative returns?

Investors that care to harken back 80 years will find that the 1929 - 1932 era is the only period of time that compares to today. In fact, the parallels between now and then are bountiful and scary.

But who cares about history when the market is up and the forecasts call for better days ahead. The Dow Jones (DJI: ^DJI) broke the 10,000 for the first time in over a year, the S&P 500 (SNP: ^GSPC) rallied over 55% and the Nasdaq (Nasdaq: ^IXIC) has soared nearly 70%. Wall Street is anxiously expecting another earnings season, which is expected to be predominantly good.

If there is one thing we should have learned from history, it's that the bear strikes hardest when least expected. Pierre Corneille hit the nail on the head when he said that 'danger breeds best on too much confidence.'

Black Monday's or Thursday's wouldn't be called 'black' if they were expected. Market tops are always marked by extreme levels of optimism.

In January 2009, with the Dow Jones slightly above 9,000, the ETF Profit Strategy Newsletter noticed elevated levels of optimism and warned of a severe decline with a target of Dow 6,700. Today, sentiment readings are even more extreme than they were in January. The implications are obvious.

If there is just one time you want to take a lesson from history, it is RIGHT NOW. The parallels between today and the Great Depression are numerous and strikingly similar. This 5-minute history lesson might be the best investment you'll ever make.

Optimism preceded the 1929 and 2007 market tops

Even though a major storm was brewing, prior to the 2007 market top, Wall Street saw no 'cloud in the sky.' In its Global Economics Report, released in the summer of 2007, Merrill Lynch's analysts published the following outlook: 'The Merrill Lynch global economics team believes that the economy will continue to grow in 2007 - with no sign of a significant cyclical slowdown.'

From 2007 to 2009, the major indexes declined some 50%.

On December 4, 1928, President Coolidge sent the following message on the state of the Union to the reconvening Congress: No Congress of the United States ever assembled, on surveying the state of the Union, has met with a more pleasing prospect than that which appears at the present time. You may regard the present with satisfaction and anticipate the future with optimism.'

A few days before leaving office in 1929, the parting President cheerfully observed that the economy was absolutely sound and that stocks were cheap at current prices.

Following the 1929 highs, the Dow Jones (NYSEArca: DIA - News) declined 48%.

The market rallied 50% in 1929/1930 and today

Following the initial 48% decline in 1929, the Dow Jones rallied 48% within a period of six months. This rally was powerful and retraced 52% of the Dow points lost in the initial decline. Even though the market was far from its previous highs, investors had once again gotten excited about owning stocks and felt confident that the market would continue to move higher.

On March 25, 1930, just a few weeks before the waterfall decline resumed, the New York Times reported that 'Wall Street was in a cheerful frame of mind as a result of numerous vague reports of improvement in business and industry.'

Once the bear market resumed, it erased another 86% of the Dow's value.

Following the 54% 2007 - 2009 decline, the Dow Jones rallied 54%. So far, the Dow has retraced 45% of the points lost in the initial decline. The 50% mark, a Fibonacci retracement level, often exercises a magical pull and provides an upper target for bear market rallies (chart below includes data up to 8-15-09).

Similar to the 'vague reports of improvements' reported in 1930, today's 'good news' reports are merely an adaption to lower expectations; many consider it the new normal. Just like in 1930, vague reports of improvements (in 2009 they've become known as 'green shoots') are enough to propel stocks. For savvy investors, the parallels between the two declines and subsequent rallies are certainly too close for comfort.

It all started with real estate

Did you know that the Great Depression was preceded by a great real estate boom centered in Florida? The Florida real estate bubble burst in 1926, three years before equities. Just as we've seen recently, investors took their leftovers from the real estate bust and poured it into stocks. Talk about jumping out of the frying pan and into the fire.

The 1930s version of Warren Buffett

Yes, the Great Depression had its own Warren Buffett - John D. Rockefeller. In his first public statement in decades, Mr. Rockefeller expressed his conviction 'that fundamental conditions of the country are sound, my son and I have for some days been purchasing sound common stocks.' A few months later, on November 13, 1929, Mr. Rockefeller allegedly entered a million-share buying agreement to peg Standard Oil's stock price at $50.

Rockefeller's public appearance is strikingly similar to Warren Buffett's October 16, 2008 op-ed in the Wall Street Journal, 'Buy America. I am.' Buffett confirmed his view many more times since, most recently in a 7-24-2009 interview with CNBC's Squawk Box where he stated that Dow 9,000 is still a good time to buy stocks.

Initially, John D. Rockefeller looked like a genius because stocks started the mother of all sucker rallies the week he allegedly entered into the buying agreement. The 1930 green shoots, however, wilted quickly. A few years later, mighty Standard Oil - the parent company of Exxon and Mobil - traded at $20 share, more than 70% below its prior high. Few companies have been as influential as Standard Oil in the early 20th century and Berkshire Hathaway today. Even though they are decades apart, their paths might be similar.

Putting this bear market into perspective

The bear market from the 2007 highs has humbled all markets: large cap stocks (NYSEArca: IVV - News), mid cap stocks (NYSEArca: IWR) and small cap stocks (NYSEArca: IJR - News). Defensive sectors such as consumer staples and aggressive sectors such a consumer discretionary. Global developed markets and emerging markets (NYSEArca: EEM).

This unique 'red across the board' behavior has not been seen in the 70s, 80s or 2000 bear markets. The only other similar time period to be found is during the Great Depression.

Waiting for the last laugh

While bulls feast on the current gains, bears and average investors observe the market's rise with amazement. This doesn't mean that this humongous rally was entirely unexpected. Contrary to the prevalent dooms-day atmosphere surrounding the March lows, the ETF Profit Strategy Newsletter issued a Trend Change Alert on March 2nd, predicting the biggest rally since the October all-time highs with a target range of Dow 9,000 - 10,000.

John Kenneth Galbraith, author of 1929 - The Great Crash, described the pattern of the 1929-1932 bear market as follows:

'The worst continued to worsen. What looked one day like the end proved on the next day to have been only the beginning. Nothing could have been more ingeniously designed to maximize the suffering, and also to insure that as few people as possible escape the common misfortune. The fortunate speculator who had funds to answer the first margin call presently got another and equally urgent one, and if he met that there would still be another. In the end all the money he had was extracted from him and lost. The man with the smart money, who was safely out of the market when the first crash came, naturally went back in to pick up bargains. The bargains then suffered a ruinous fall. Even the man who waited for volume of trading to return to normal and saw Wall Street become as placid as a produce market, and who then bought common stocks would see their value drop to a third or a fourth of the purchase price in the next 24 months. The Coolidge bull market was a remarkable phenomenon. The ruthlessness of its liquidation was, in its own way, equally remarkable.'

This counter trend rally is likely to be the biggest one of the bear market which started two years ago. While we've seen the biggest rally of this bear, we have yet to experience the biggest decline. This decline may delay for another few days or weeks but it is certain to come.

Just when you thought it wasn't possible

If this sounds impossible, consider the following:

1) The Dow Jones measured in the only true currency - Gold (NYSEArca: GLD - News) has already declined over 80%. To reset valuations, the Dow measured in dollars will have to follow.

2) Japan's (NYSEArca: EWJ - News) Nikkei has lost as much as 80% since its 1990 all-time high. This drop came amidst a global bull market. Imagine what a global bear market can do.

3) A look at current dividend yields and P/E ratios shows that U.S. stocks are grossly overvalued. The current P/E ratio of 141 (reported by Standard & Poor's) dwarfs even the P/E ratios seen during the bubble, where technology companies (NYSEarca: XLK - News) with no earnings traded at $100 a share and more.

The human tendency to shun overpriced stocks will take over once this emotional buying frenzy has run its course. That's how it's always been, that's how it will prove to be. Once that happens, the majority of investors will wish they'd listened to the subtle but clear advice presented by history.

The ETF Profit Strategy Newsletter contains a detailed analysis of P/E ratios, dividend yields, investor sentiment and the Dow measured in gold along with short, mid and long-term market guidance. Indicative of their implications we've named these indicators the 'Four Horsemen.' The four horsemen are in agreement with history; a market top is close and a multi-decade low is near.

Urgent: What to Do If You Cannot Avoid Flu Shots or are Exposed to Virus Shedding

(NaturalNews) Many of us are going to do what we can to avoid the swine flu vaccinations. But thus far, all the petitions and legal maneuvers have failed. Instead, legal enforcement measures are increasing, with three USA states, Maine, Massachusetts, and Oklahoma having passed legislation to ensure everyone gets vaccinated in their states whether they want to or not! And there are similar enforcement measures in some European nations as well.

So if push comes to shove and there is no escape - what then must we do? Dr. Russell Blaylock, retired neurosurgeon and author of Excitotoxins: The Taste That Kills, and Health and Nutrition Secrets That Can Save Your Life as well as Natural Strategies for Cancer Patients, has some answers that you could tape onto your refrigerator or medicine cabinet.

BTW - if you manage to avoid the swine flu vaccinations, stay away from those who were vaccinated for around three weeks, or at least treat them as though they are infected with a virulent flu. There is such a thing as virus shedding from individuals who are vaccinated with live attenuated viruses, which the swine flu vaccines will contain.

Get Ready for the Worst Now

This advice that Dr. Russell Blaylock presents needs to be started immediately. If you manage to avoid the shots, nothing is wasted. This advice will help you ward off the flu itself and any virus shedding, plus it'll make you healthier anyway. The worst, most immediate effect from the flu vaccines may come from the high amount of squalene added as an adjuvant.

What can result from squalene is a cytokine storm, which is an over reacting, berserk immune system that attacks the lungs, the brain and nervous system, creating a variety of neurological or autoimmune diseases. This happened in the 1976 bogus flu scare and to soldiers who were vaccinated against anthrax during Gulf War I. It has been reported that the squalene content will be even higher in these Swine Flu Vaccines. See the related CBS 60 Minutes episode from 1979 via the link in the sources section below.

Your Emergency Kit

Dr. Blaylock recommends that you have a cold pack and apply it immediately onto the inoculated or nasal mist sprayed area and continue for the rest of the day. He had observed this working on vaccinated infants who were having adverse immune reactions from their vaccinations. He recommends that you continue cold pack applications and even cold showers if excessive immune reactions causing discomfort continue after the first day.

An hour or so before the shot or nasal mist spray, take a high dose of curcumin and quercetin! Blaylock says these two flavonoids mixed, even with other flavonoids, tend to block the adjuvant squalene's damage. It seems that continuing those two anti-inflammatory substances should be continued for some time after the shot or shots. Curcumin is in tumeric. So start using that spice in your food now.

Have a high EPA (eicosapentaenoic acid ) Omega 3 oil on hand. Take a high dose of EPA Omega 3 an hour before the vaccination! Then use much lower doses for a few days after. High EPA oils do dampen your immune system, but this is what you want to protect yourself from the squalene adjuvant that produces hyper immune reactions that cause brain inflammation.

Blaylock says that studies have shown this to be highly effective with vaccinations. He recommends fish oils since they are are high in EPA Omega 3. But beware of mercury. Hemp seed oil (it's legal) could be a worthy substitute. Mercury is another harmful adjuvant in vaccines. So sea foods that are liable to contain mercury should be avoided from now on.

Vitamin D3: Protection from the Swine Flu and the Vaccination

Starting now, boost your vitamin D3 intake. Mike Adams has been saying this for weeks if not months. Get as much sun on exposed skin as possible, and supplement at least 5000 IU's per day for adults and 2000 IU's per day for children. More won't hurt.

Vitamin D3 is an immune regulator. That means it not only boosts your immune system to help you fight off any flu, it dampens an overactive immune system and protects you from a cytokine storm. Pretty nifty stuff! Avoid common drugstore vitamin D or D2. Those are not the D3 that will help you.

The caveat for the transdermal creation of Vitamin D3 from the sun is a claim that showering or bathing with soap soon after sun exposure tends to diminish the vitamin D3 production that begins in the skin. So try to bathe or shower before sun exposure, or shower by applying soap only to the normally stinky parts of your body that were not exposed. Time to get tough!

If you do get jabbed, Blaylock recommends you increase your Vitamin D3 dosage to as high as 20,000 IU's per day and 5,000 IU's for children for a couple of weeks, then cutting that in half for several days. Vitamin D3 is not a vitamin, but is actually a neural hormone explained Dr. Blaylock. He advises using an assimilable calcium supplement to increase Vitamin D3's efficiency. Consider calcium a vitamin D3 adjuvant!

Other Important Nutrients

Dr. Blaylock recommended everyone start taking a good multi mineral/vitamin that does not contain iron or copper but is high in selenium and zinc. Zinc deficiency was found to be high among young children who had serious vaccination consequences. But Blaylock cautions against any copper in the mix since it generates free radicals.

Selenium is an excellent anti-viral as well as anti-inflammatory. There is evidence that toxicity from taking selenium with doses above 200 mcgs is bogus. Twice as much is recommended by that information source. In Japan, the average daily intake of selenium is 500 mcgs. And they have a lower cancer rate than the United States. Try to use natural sources.

To be safe and selective, it may be wise to use individual vitamins and minerals. The B complex is important, as are the selenium and zinc. High doses of buffered vitamin C, 1000 mgs four times a day, is what Blaylock recommends if you get stuck or sprayed. There is high anti-inflammatory activity with Vitamin C as well as anti viral potential.

Then Vitamin E, high in gamma-E in its natural form is another Blaylock recommendation to reduce cytokine inflammation.

Blaylock also recommends astaxanthin to minimize inflammation. Astaxanthin is a deficiency common with dark skinned people. That is why many Africans and Aboriginals died from vaccinations. For astaxanthin reference Mike Adams's article

Another Blaylock recommendation is white tea. The whiter the better. It's a fairly new arrival to the west that has been known in the orient for hundreds of years. So you may have to go online to get it. He recommends four strong cups a day as another effective immune regulator.

Apogenin and luteolin are flavonoids that are very good at blocking autoimmune diseases. Blaylock suggests mixing celery and parsley in a blender and drinking the juice twice a day to get those two flavonoids into your system. However, for juicing while preserving enzymes, a slow speed juicer, if you can get your hands on one, is better than a blender.

Finally, Blaylock says to avoid oils made of corn, safflower, canola, peanut, soybean, and sunflower. He claims they suppress immunity while creating inflammation. Not what you want if you've been jabbed with squalene.

Summary and Conclusion

These are all the main points of Dr. Russell Blaylock's advice on surviving the swine flu vaccinations. His experience as a neurosurgeon has guided him to be an excellent researcher into the nervous system's reactions to vaccinations and neurotoxins in food additives.

Dr. Blaylock is totally anti-vaccination, for your information. In other words, he knows vaccinations don't work and they only endanger people who receive them. He has passed this information on to us to help us survive the immediate reactions of forced toxic vaccinations.

Not everyone is going to be able to gather in all of the substances he recommends, especially white tea for example. But most of the main items in his list are available to most of us. So get on it already!

However, Blaylock also warns about the delayed reactions that other adjuvants, such as mercury and aluminum, can create. And there are, as Blaylock mentioned in an interview, stealth (or retro) viruses in the vaccine itself that may cause havoc down the road.

There has been a lot of success recorded from homeopathic treatment of vaccination injuries, or VIDS (vaccination induced disease syndrome). So for long term negative effects, it's wise to establish a relationship with a homeopath who doesn't look puzzled when you mention VIDS or vaccination injury.

More on homeopathy for VIDS in a later article.


Excellent CBS 60 Minute Report on the 1976 Swine Flu Debacle Aired in 1979

Video Interview of Dr. Blaylock by Dr. Mercola

Blaylock: What to Do If Force Vaccinated

Disease Has an Enemy Named Selenium

Wednesday, October 14, 2009

Vaccines: Flu vaccines revealed as the greatest quackery ever pushed in the history of medicine

(NaturalNews) Prepare to have your world rocked. What you're about to read here will leave you astonished, inspired and outraged all at the same time. You're about to be treated to some little-known information demonstrating why seasonal flu vaccines are utterly worthless and why their continued promotion is based entirely on fabricated studies and medical mythology.

If the whole world knew what you're about to read here, the vaccine industry would collapse overnight.

This information comes to you courtesy of a brilliant article published in The Atlantic (November 2009). The article, written by Shannon Brownlee and Jeanne Lenzer, isn't just brilliant; in my opinion it stands as the best article on flu vaccines that has ever been published in the popular press. Entitled Does the vaccine matter?, it presents some of the most eye-opening information you've probably ever read about the failure of flu vaccines. You can read the full article here:

Perhaps its impressive narrative shouldn't be too surprising, though, since writer Shannon Brownlee is also the celebrated author of a phenomenal book on modern medicine entitled Overtreated: Why Too Much Medicine Is Making Us Sicker and Poorer ( (

While I've never done this before, I'm going to summarize this article point by point (along with some comments) so that you get the full force of what's finally been put into print.

This information is so important that I encourage you to share the following summary I've put together. Email it to family, friends and coworkers. Or post it on your blog or website (with a link and proper credit to both NaturalNews and The Atlantic, please). Get this information out to the world. People need to know this, and so far the mainstream media has utterly failed to make this information known.

(The really good information begins after around a dozen bullet points, so be sure to keep reading...)

Does the vaccine matter?
What follows is my point-by-point summary of this groundbreaking article by Shannon Brownlee, originally published in The Atlantic. My opinion statements are shown in brackets and italics.

• Vaccination is the core strategy of the U.S. government's plan to combat the swine flu.

• The U.S. government has spent roughly $3 billion stockpiling vaccines and anti-viral drugs.

• The CDC is recommending that 159 million Americans receive a swine flu vaccine injection (as soon as possible).

• What if vaccines don't work? More and more researchers are skeptical about whether they do.

• Seasonal flu (that's the regular flu) currently kills an estimated 36,000 people each year in the United States. [But most people who die are already suffering from existing diseases such as asthma.]

• Most "colds" aren't really caused by the flu virus. As few as 7 or 8 percent (and at most, 50 percent) of colds have an influenza origin. There are more than 200 viruses and pathogens that can cause "influenza-like" illnesses (and therefore be easily mistaken for the flu).

• Viruses mutate with amazing speed, meaning that each year's circulating influenza is genetically different from the previous year.

• The vaccine for each upcoming flu season is formulated by health experts taking a guess [a wild guess, at times] about what strain of influenza might be most likely to circulate in the future.

Core Of Corruption: In The Shadows

Core of Corruption is a documentary film series which details a comprehensive investigation into clandestine intelligence operations and conspiracies. The project is surfacing exclusive whistle blowers, insiders and critical evidence for the very first time. Over 2,000 hours of credible network news clips have been surfaced for this ground breaking event, most of which have never been seen since they aired and have never been available on the internet. Some of the video news segments for this project, when requested from the networks, were denied access to and corporate representatives would say that the information sought does not exist or has been misplaced. Someone doesn’t want the public to see these stories, that when put together, establish a conspiracy of the magnitude that could change the way one views the world. Countless millions of people are being manipulated and lied to by a network of individuals within government that work on behalf of private interests. The individuals were involved in the terrorist attacks of September 11th. Many of those same figures are are connected to historical events that have shaped our understanding of government crime. For instance, the Iran Contra affair involved many figures that showed up in the 9/11 attacks.

Beginner's Guide to the New World Order

A mini documentary about the New World Order written and directed by Jonathan Elinoff from Loose Change Blog, details the basic understanding and evidence to introduce someone unfamiliar with the information. Jonathan's film series, Core of Corruption, is sometimes featured and the expected release date for that series is March 27th, 2009. Another film you might remember Elinoff from is RAW: Republicans Against the War which was another mini-doc released exclusively online, also available on this channel.

Thursday, October 8, 2009

Current Numbers Dont Add Up To Recovery

Unemployment numbers belie the announced recovery, credit card interest still killing consumers, market changes the balance over manipulation, economic recovery not possible without a manufacturing base, dollar abandoned worldwide, a second downturn is forecast

This past week the BLS released the September unemployment statistics and they worsened as usual, as America enjoys its recovery.

* Those unemployed 15 weeks or longer, as a percent of the civilian labor force was 5.4%.
* Job losers and persons who completed temporary jobs, as a percent of the labor force was 6.8%.
* Total unemployed, as a percentage of the civilian labor force, the official unemployment rate, 9.8%.
* Discouraged workers 10.2%.
* Total unemployed plus discharged workers, plus marginally attached workers 11.1%.
* Total unemployed as a percent of the civilian labor force 17%.

If the birth/death ratio is removed, U-6 is in reality 21.3% total US unemployment. The estimate is that 824,000, more jobs may be extracted from the payroll count for the 12-months ended next March. Such a revision would be the biggest since 1991. The BLS is underestimating job losses deliberately and has been for a long time. That would mean September’s loss would be some 300,000 not 263,000.

Such a revision would put job losses not at 4.8 million but 5.6 million jobs.

This is how government has operated for some time and will continue to as long as we allow them too.

Last week the Dow and the S&P fell 1.8%; the Russell 2,000 fell 3.1% and the Nasdaq 100 fell 1.9%. Cyclicals fell 2.5%; transports 3%; banks 2.8%, as broker/dealers gained 1.1%. Consumers rose 0.3%; utilities fell 2.69%; high techs fell 1.6%; semis 4.5%; Internets fell 1.6% and biotechs 4.1%. Gold bullion rose $12.00, as the HUI dipped 0.7%. The USDX rose 0.3% to 77.03.

Two-year T-bills fell 11 bps to 0.76%, 10-year notes fell 10 bps to 3.22% and 10-year German bunds fell 13 bps to 3.12%.

Freddie Mac 30-year fixed rate mortgage rates fell 10 bps to an 18-week low of 4.94%; 15’s fell 10 bps to 4.36% and one-year ARMs fell 3 bps to 4.49%. Jumbo 30’s fell 6 bps to 6.11%.

Federal Reserve credit fell $12.4 billion. It has fallen $126 billion ytd, but it is still up $742 billion, or 53% yoy. Fed foreign holdings of Treasuries and Agency debt rose $583 million to a record $2.855 trillion. Custody holdings for foreign central banks rose at a 17.9% rate ytd, and $389 billion yoy, or 15.8%.

M2 narrow money supply declined $8 billion to $8.310 trillion ytd and 5.2% yoy.

As the lack of government guarantees become known more money leaves money market funds. Assets sank again $53.5 billion to $3.429 trillion. They have fallen $401 billion ytd, or 36% annualized. They have increased only $30 billion, or 0.9% yoy.

We wonder what House and Senate members think when their constituents complain that banks are now charging 25% to 40% credit card interest? They simply don’t care, because these very same banks are paying off these elected representatives and senators via campaign contributions. That is an extra $700 billion to $1 trillion a year in earnings when the average family is having trouble putting food on the table. Couple this with virtually no income on savings and you have a dreadful situation. Americans are tax slaves to government and debt slaves to banks, a situation that cannot long persist. In addition banks want to charge more and subtly taxes will soon rise again.

Last week we forecast the fall in the Dow at 9,800 and so it has begun. The market has finally overpowered the manipulation of our government. It wasn’t that difficult. A 26 P/E ratio of trailing earnings that should be 14.5 times. The next leg down will test 6,000 to 6,600 on the Dow next year. All those who had a second chance to sell into the bear market will be doomed to greater losses than they experienced this year. It is time to again exit the market and move into gold and silver related assets. The banks and brokerage firms along with insurance companies have been driving this bear market with money from the Fed and the Treasury at 50 times leverage. The correction is underway as all these entities try to exit at the same time. Some are going to end up insolvent. This reminds us of 1922 in Germany and today’s Zimbabwe. Assets on bank and brokerage house balance sheets are going to be devastated. Even they do not really understand the debasement that has taken place. Every chart comparing everything with gold is in a state of collapse and that will become more evident shortly as gold soars to new heights. The mad overvaluation of the markets is about to end. The de-leveraging will take ten perhaps 20 years that is unless we have another world war. Fudging the figures just is not going to work. The PPI is climbing and no one seems to notice, particularly the media. Big inflation is on the way. It will be interesting to see just how much of the price increases businesses are going to absorb. Those on the edge are going to go bankrupt as debt doubles and doubles again.

All this is the result of the machinations of those who have created a corporatist fascist government for us, which will become the new world order, if we allow it to happen.

How can it be possible to have an economic recovery as we lose more and more jobs and that America manufactures very little. Private banks, Wall Street and insurance companies with vast amounts of wealth control our country, make no mistake about it. This is done by the private issuance of money and the deliberate creation of inflation, deflation and depression.

Inflation started to show up again beginning in May and this past month showed 25% growth in the PPI. That won’t show up in official government figures for the CPI, but it will in part be there. Will the corporations absorb the added cost or will they pass it on? Of course, they’ll pass it on.

Relentlessly the dollar is being abandoned worldwide. Unfortunately, the other G-20 currencies are not much better and that is why gold is so important. Keeping liquidity running into the system hasn’t worked and can’t work.

Our President’s pet group ACORN, a criminal enterprise, has had its funding pulled by the Ford Foundation. Annie E. Casey Foundation, the Charles Stewart Mott Foundation, the Marguerite Casey Foundation and Bank of America. Good riddance to bad rubbish.

The dollar has fallen from $124.00 on the USDX in 2002 to about 76.30 recently and was as low as 75.75 two weeks ago. Incidentally, someone should tell the liars at CNBC gold has risen by 300%. At both G-20 and G-7 summits there was little attention afforded to the plight and future of the dollar.

G-20 was full of the normal gobbligoop by bureaucrats running hither and yon, and accomplishing nothing more than creating a cloud of dust. They said they will maintain the global flow of capital as bank lending fell 14% yoy. Nothing has been done to repair the financial system. It is worse off now than it has been in two years, since the debacle began. In order to repair the system it has to be purged. The banks, brokerage houses, insurance companies and the Fed have to go into bankruptcy. This, of course, means Americans will lose 50% to 95% of their wealth, unless they are in gold and silver related assets. That is the cost of not paying attention, for not making the House, Senate and President do as they should. These so-called leaders have done everything possible to insure that there is no recovery. This while they tell us the global financial crisis is over. In addition the same crowd that created this disaster tells us over and over again that without their untimely and unprecedented support, the system would have collapsed.

You have to laugh at the G-7 and G-20. The latest is that world financial ministers have told the IMF to prepare guidelines to ensure an orderly and cooperative exit from fiscal and monetary stimulus. That can’t happen, because if it does the whole system will collapse. This is the IMF, which is selling gold because they will soon be broke, and haven’t made a correct decision in 60 years. The IMF is to provide insurance-style finance to well run emerging economies so they won’t build up foreign exchange. We have never heard anything stupider in our lives. As this transpired the World Bank’s President, Robert Zoellick, informs us the bank will be broke within a year.

Last month the BLS created 34,000 jobs via the net birth/debt adjustment (ratio). What a fraud. That is double the 18,000 for September 2008.

They are telling you what you are supposed to believe. That story is as believable as the WDO story that started the invasion and occupation of Iraq. Our President tells us Iran has a secret nuclear facility. This is information Iran told the UN’s International Atomic Energy Agency four days previously and miraculously our President discovered it. This, like the meetings of G-20, G-7 and demonstrations, serve as distractions to our pitiful economic and financial morass. This was to be used as an excuse to greatly increase sanctions, which are a form of warfare. All this is misinformation to cover up a two-year old credit crisis that is worsening by the day. Americans and others realize this. That is why spending is falling and savings are rising. This holiday season sales will be off 1% to 3% with the stimulus package. Otherwise they would have been off 5% or more. Recognition of our financial and economic situation has made banks reduce lending. It is obvious credit expansion has reached its limit and that is why lending and spending has slowed.

This all comes back to 8/15/71, the day the US left the gold standard. The only way the dollar can be saved is by a return to the gold standard. Unfortunately that won’t and can’t happen because we do not believe the US has any gold left and even if they did they still wouldn’t have a gold backed currency. They want the destruction of the dollar in order to implement a world currency from the IMF and in that process bring the world economic and financial system to its knees to force us to accept World Government. This is evident in the Illuminist goal to control all political, social and financial freedom. This is all being done by way of deception. The same deceit has been used in the TARP program. The purpose of which was to purchase troubled assets that cluttered balance sheets. What happened instead was that the funds were used to buy the shares of troubled banks and for banks to buy other failing banks and to speculate in markets. Another deception is that the Fed will wind down its monetization program. That is impossible, otherwise the system would collapse. Never mind the secret monetization going on in swaps and in secret Cayman accounts. In all of this saving of banks, Wall Street and insurance companies the public has been left behind and unemployment has flourished. All such programs are doomed to failure and your only protection is gold and silver related assets.

Goldman Sachs stands to receive a payment of $1bn – while US taxpayers would lose $2.3bn – if embattled commercial lender CIT files for Chapter 11 bankruptcy protection, people familiar with the matter said.

The payment stems from the structure of a $3bn rescue finance package that Goldman extended to CIT on June 6 2008, about five months before the Treasury bought $2.3bn in CIT preferred shares to prop it up at the height of the crisis. The potential loss for taxpayers would be the biggest to crystallize so far from the government’s capital injection plan for banks.

The agreement with Goldman states that if CIT defaults or goes bankrupt, it would be required to pay a make-whole amount that totals $1bn, the people familiar with the matter said.

While Goldman is entitled to demand the full amount, it is likely to agree to postpone payment on a part of that sum, these people added. A CIT filing last week said that it was in negotiations with Goldman concerning an amendment to this facility.

Goldman said: This would not be a windfall payment. The make-whole payment is simply the present value of the spread to be earned over the life of the facility.

CIT declined to comment. In an effort to prevent bankruptcy, it is working on a debt exchange offer that would virtually wipe out equity holders. In the event of bankruptcy, Goldman would reap more than $1bn because it also holds credit insurance that would be paid off.

Goldman said: “The credit default swaps Goldman Sachs purchased to prudently manage the risk associated with the CIT financing are not a directional ‘bet’ on CIT, but were bought to protect against the possibility of a precipitous decline in the value of the collateral.”

Michael Geoghegan, chief executive of HSBC, is so convinced there will be a second downturn in the coming months that he plans to delay any rush to expand the bank.

The Dollar Is Finished