Friday, October 16, 2009

Dollar edges up against most rivals, but slips versus pound

LONDON (MarketWatch) -- The U.S. dollar and the British pound gained ground versus most major rivals Friday, building on a rebound from recent lows scored the previous day as traders booked profits, strategists said.

The U.S. dollar index /quotes/comstock/11j!i:dxy0 (DXY 75.84, +0.36, +0.48%) rose to 75.579, up from 75.480 in North American trade late Thursday after sliding to a series of 14-month lows earlier in the week.

The dollar bought 91.10 yen, up from 90.59 yen. The euro traded at $1.4913 versus the dollar, down slightly from $1.4933 after failing so far to breach the psychologically important $1.50 level.

The U.S. dollar also bought 1.0330 Canadian dollars, little changed from 1.0333 Canadian dollars late Thursday.

But the greenback slipped against the British pound, which was at $1.6315, up from $1.6270.

The greenback lost ground to the Australian dollar, with the Aussie rising to $0.9219, up from $0.9201.

The battered pound was the biggest winner, continuing to power higher versus the euro and the greenback a day after a Bank of England policy maker signaled satisfaction with the impact of the central bank's quantitative-easing strategy. Read more on pound.

The British pound gained ground versus the dollar rising to $1.6315, up from $1.6270 Thursday. The euro slipped 0.5% versus sterling to 91.40 pence.

Traders said the remarks by Paul Fisher, the bank's director of markets and member of the Monetary Policy Committee, were sufficient to trigger an explosive round of short covering. U.S. Commodity Futures Trading Commission data released last week showed a historic build-up of short positions against British pound futures, noted analysts at Brown Brothers Harriman.

"The fundamentals for the pound are still negative, with interest rate differentials favoring other currencies," they wrote. "Next week's minutes of the Bank of England meeting may also reinforce the fragile nature of the economic recovery, and the likelihood of rates remaining at this low level for some time."

Others cautioned that betting against the pound in the midst of a run of unexpectedly strong third-quarter earnings report by major banks could prove perilous.

"We would caution against being short GBP [selling the British pound] when U.S. bank earnings are again generally beating expectations, as markets treat GBP as a proxy for the performance of the financial sector," said Adam Cole, global head of FX strategy at RBC Capital Markets in London.

"Our short-term models also continue to show GBP heavily oversold relative to short rate expectations and bank stocks, consistent with other evidence that short-GBP is a seriously overcrowded trade currently," he wrote in emailed comments.

August trade data for the euro zone showed the 16-nation region swung to a larger-than-expected 4 billion euro ($5.98 billion) deficit with the rest of the world, following a 12.3 billion euro surplus in July. Economists had forecast a 300 million euro deficit. The statistics agency Eurostat said seasonally-adjusted exports fell by 5.8% between July and August, while imports dropped 1.3%.

The figures come amid rising unease among euro-zone officials and businesses over the strength of the euro.

The data "highlight the fact that the external recovery remains fragile and is why the euro's strength is so unwelcome," said Ben May, European economist at Capital Economics. "Nonetheless, the continued weakness of imports should ensure that the external sector boosted [gross domestic product in the third quarter], but this is hardly encouraging."

From a technical standpoint, the euro remains "slightly overbought" versus the dollar, "so perhaps its time to take a breather today," wrote Nicole Elliott, a technical analyst at Mizuho Corporate Bank, adding that "even half-baked stockbrokers are becoming aware of the U.S. dollar's weakness."

Nonetheless, a "weekly close above $1.4800 would confirm that the next leg of the (euro) rally has started," she said.

Meanwhile, the People's Bank of China set the yuan's official rate 6.8270 against the dollar Friday, according to reports, down slightly from 6.8267 Thursday. The yuan is allowed to fluctuate on 0.5% on either side of the official daily rate.

China's foreign-exchange policy risks "unwinding" some of the progress made in reducing global trade imbalances during the financial crisis, the U.S. Treasury said Thursday in its latest report on foreign-exchange trading.

But the Treasury repeated its previous finding that China was not formally manipulating its currency. See full story on U.S. views on the yuan policy.

ACLU defends medical marijuana

The American Civil Liberties Union (ACLU) of Hawai'i has put the Hawaii County Council on notice that police helicopter flyovers for marijuana eradication are believed to be in violation of the Hawaii Constitution, the state's medical marijuana law, and the county's Lowest Law Enforcement Priority of Cannabis Ordinance.

"We are particularly concerned that the Hawaii County Police Department (HCPD) is violating individuals' privacy under Article I, S6 of the Hawaii Constitution, along with the Lowest Law Enforcement Priority of Cannabis Ordinance passed last year, and that HCPD may also be violating state law by targeting medical marijuana patients during these 'marijuana eradication' efforts," ACLU of Hawaii Senior Staff Attorney Daniel Gluck wrote the council's Committee on Public Safety and Parks & Recreation on Oct. 6. The two-page letter was submitted as testimony to police's Marijuana Eradication Report for August 2009.

Police Chief Harry Kubojiri refuted the claim that police are targeting medical marijuana patients.

"I'm going to repeat, because I've said it before, the Hawaii Police Department is not targeting medical marijuana patients during eradication missions," Kubojiri said.

He maintained that police are in compliance with the Lowest Law Enforcement Priority of Cannabis Ordinance, spending "one-fourth of one percent" of their time and resources on marijuana, which, in his mind, illustrates the drug is a low priority for police.

"On the other hand, I don't expect my officers nor am I directing my officers to ignore marijuana that they come across incidental to other investigations that they might be doing," Kubojiri said.

The police chief pointed out that according to the state and federal laws marijuana is still illegal, and the Lowest Law Enforcement Priority of Cannabis Ordinance does not legalize marijuana. The purpose of marijuana eradication missions is "marijuana suppression, anti-commercial cultivation, anti-trafficking, and anti-distribution of illicit substances, more specifically marijuana," he said.

Meanwhile, Judith Mura, a resident of La'akea Farm Lots in Puna, affirmed Gluck's charge that the helicopter flyovers are "extraordinarily invasive for law-abiding Big Island residents." She recalled a recent flyover involving a Drug Enforcement Agency (DEA) helicopter and second helicopter that they had chartered. The helicopters flew what she estimates to be "10 feet" above her house before landing on a private road in her Puna subdvision near Isaac Kepo'okalani Hale Beach Park, also known as Pohoiki.

"Luckily I had removed the plastic from my greenhouse, otherwise it would have been torn to shreds it was that close," said Mura, noting three of her neighbors came out to yell at the helicopter pilots and learn that one of the helicopters had an oil leak. The DEA helicopter flew off after 15 minutes, and the chartered helicopter said to have an oil leak sat grounded for a couple of hours before the pilot resumed flight.

"I was just so scared that they could have torn off the roof of my house," Mura said. "If my sheep were out in the field, they could have scared my animals away.

"If I was caught driving that recklessly on the road, they would have thrown my butt in jail," she said. When Mura called police to make a report about the low-flying helicopters, the officer who took her report inquired, "Did they find anything?"

"I said, 'This is not about them finding anything,'" Mura recalled. To her, this is about police engaging in illegal searches by recklessly flying helicopters so low that they endanger private property.

"On a daily basis, it makes me feel like I'm being invaded," Mura said of the helicopter fly-overs. "It makes criminals out of innocent people. People get disturbed, even those of us without having marijuana in our yards. It makes you wonder what it is like when you are growing. She noted the medical marijuana patients she knows who are growing. "They get so scared, and these people are legal. I mean, your heart rate changes when they start to fly."

While Gluck's letter doesn't refer specifically to the incident to which Mura referred, it refers to another incident in March in which DEA and HCPD "flew over one resident's home four times, landed in his neighbor's yard, and spent well over an hour hovering just a few dozen feet above his home." DEA and HCPD had raided that same resident's home in September 2008, despite the resident's "full compliance with Hawaii's medical marijuana laws."

"During that raid, government officials refused to show identification and failed to produce a warrant," Gluck wrote. "They have not produced a warrant to this date, despite breaking a fence to gain entry to the property. They seized his marijuana and, as a result, his health has suffered enormously. These actions by HCPD are simply unacceptable: this particular resident is a seriously ill medical marijuana patient, and the fly-overs cause him extraordinary distress which he fears may lead to a heart attack or a seizure. His poor health simply cannot take the level of harassment and strain brought on by HCPD."

Kubojiri maintained that police, prior to executing a search warrant or embarking on an eradication mission, check with the state to see if a particular property owner believed to be in possession of or growing marijuana has a Department of Public Safety-issued medical marijuana certificate.

"Quite honestly, I'm unaware of the specific incident being alleged in the letter," Kubojiri said. "The most I can do is have someone looking into the allegation."

Dominic Yagong, who is now chair of the Council's Public Safety and Parks & Recreation Committee after the highly-publicized reorganization, is concerned about allegations that police are targeting medical marijuana patients.

"My main concern has always been those patients who use marijuana for medical reasons," Yagong said. "It saddens me when you hear of them either being raided or in their description being harassed, and I hope there is a way we can single out these medical marijuana patients, so they can live their lives without being raided."

Yagong noted that medical marijuana patients should not be bothered, so long as they have no more plants than the medical marijuana law allows them. "If they go beyond those limits, they should face the wrath of the law," Yagong said. "It's like going to a pharmacy. They will only issue the amount of the prescription. You need to stay within the perimeters. The problem I hear is even people within those limits are being harassed and raided. And that's where I have a problem."

Gluck said in an email to the Big Island Weekly that ACLU of Hawaii wants to see council members, the Mayor's office, and Hawaii County police working together "to best effectuate the voters' wishes in passing the lowest law enforcement ordinance last year."

"In addition, as soon as a new U.S. Attorney for Hawaii is confirmed, the Council, the Mayor's office, and HCPD should contact her and take proactive steps to ensure that Hawaii's medical cannabis patients are protected," Gluck wrote.

Kubojiri, Yagong, and Council Chair J Yoshimoto all expressed the need for some sort of clarification of the conflicting county, state and federal laws from an authority outside Hawaii County.

"I believe the state Attorney General should weigh in on this issue, so we can get some clarity," Yoshimoto said. "We should get some guidance, so we know what the public should expect, as well as law enforcement."

Yoshimoto seemed to recall that the county administration planned to seek out an opinion from the Attorney General on the Lowest Law Enforcement Priority of Cannabis Ordinance. He planned to follow up with Corporation Counsel Lincoln Ashida, before he himself writes a letter to the Attorney General.

Kubojiri said Prosecutor Jay Kimura has requested an opinion from the Attorney General, but he wasn't aware on Sunday afternoon if one had been received yet. Calls to Kimura's cell phone were not returned by pres time.

"We need everybody to understand what is government doing with respect to this law, so there is a clear understanding and expectation," Yagong said of the Lowest Law Enforcement Priority of Cannabis Ordinance. "In a nutshell, we passed a law and everyone has their interpretation of the law. A lot depends on the law enforcement interpretation, and their understanding and expectation of the general public," he said. "The problem is the state law says marijuana is legal for certain segments of population. It conflicts with the federal law, so that certainly leads to conflicts for that segment of the community. It does create a challenge for our law enforcement agency, as well. So, I don't know what needs to be done to clear up the issue. But as long as the federal law says (marijuana) is illegal, it is going to be very difficult to pick and choose when you enforce and when you don't."

In noting the need for clarity, Kubojiri pointed to a "White Paper on Marijuana Dispensaries" written in April 2009 by the California Police Chief Association's Task Force on Marijuana Dispensaries.

The 49-page document concludes, "No state has the power to grant its citizens the right to violate federal law. People have been, and continue to be, federally prosecuted for marijuana crimes. The authors of this White Paper conclude that medical marijuana is not legal under federal law, despite the current California scheme, and wait for the United States Supreme Court to ultimately rule on the issue."

Mura, meanwhile, believes marijuana eradication, and prohibition in general, is "a lost cause."

"God knows it's a lost cause. Prohibition just doesn't work. Even God said, 'don't eat from the knowledge of good and evil,' and they still did. Prohibition doesn't work. It costs too much money to persecute people," she said, noting she meant to say "prosecute" not persecute. "It costs way too much money to prosecute people. These are taxpayers' dollars. Using our tax dollars to prosecute us, to create all this, and we don't want it. I'm not a pot smoker, I'm not a pot grower. I know the friends I have that smoke herb are really nice people, so I feel like they're going after the wrong thing. I don't even think it's good for our economy that they do this. The money they spend could have gone to other departments to schools or to the library. Why is it that our tax dollars can't go to something that is creative like that, rather than eradication of something that is not bad for people?"

On the web:

Japanese Employment Trends in the United States: Part-time, Dispatched, and Contracted Workers. A Decline in the American Consumer Standard of Living.

There have been many comparisons between the lost decade experienced in Japan after the Heisei bubble boom and the current real estate bubble in the United States. On the surface, superficially things may appear the same. Japan had a technology led bubble that sent the Nikkei to record heights only to have a bust. We had the NASDAQ. Japan had a major real estate bubble which at one point it was rumored that the Emperor’s Palace had a value larger than the entire state of California. Given the budget situation in California, this isn’t hard to believe. However, Japan saw real estate values implode and we have seen our own real estate bubble burst.

Then, we have similar policy moves to combat the contraction. Japan has held rates near zero since the bust, created zombie banks by bailing them out, and injected trillions into fiscal projects. All this must sound familiar because we are doing similar things. Yet those that compare Japan with the U.S. ignore a few key aspects. First let us look at the overall employment situation:


On the surface a 4 percent unemployment rate in 2008 is fantastic for an industrialized country. The actual current rate is 5.5 percent which is a lot better then the 9.8 percent official rate in the U.S. Yet those that study employment trends in Japan know that things are not as rosy as the data shows. Japan has a notoriously large number of “non-regular” employment. After the Heisei boom to combat excess in employment and fixed labor costs, companies started hiring workers on a part-time basis or in “dispatched” contract positions. What is a dispatched worker?

“There are two types of dispatched workers: (i) “registered-type” dispatched workers who register their names and other information at temporary staffing agencies in advance, sign an employment contract, and start work when they find their workplace of dispatch; and (ii) “full-time employed-type” dispatched workers who are recruited as full-time workers of temporary staffing agencies; these are typically skilled workers such as programmers. For both types, an employment contract is signed between the temporary staffing agency and the worker, since dispatching workers is a type of outsourcing human resources, whereas full-time and part-time workers sign their employment contracts directly with the employer of their actual workplace.”

Yet these positions do not have the implied long-term stability of a full-time job, at least how we would think of it in a Western sense. So if we factor in part-time workers how does Japan’s unemployment rate look like?


Japan has an enormous pool of non-regular type employment with those classified as part-time workers making up the largest number of the non-regular pool:

Part-time worker: Like full-time workers, part-time workers sign a contract directly with the employer of their actual workplace. They differ from full-time workers, however, since either their scheduled working hours per day are shorter or the number of scheduled working days per week is fewer, even though the scheduled working hours per day are the same.”

This is where we start getting a better sense of the real under utilization rate. In the United States this is measured through the U-6 number and our current rate is up to 17 percent.


In the U.S. the part-time unemployed has grown by a record breaking 45 percent in one year. 9.1 million Americans are working part-time but who want full-time employment. This trend is only growing. In Japan 34 percent of the work-force is under the non-regular category with over 20 percent being part-time employment similar to our 9.1 million workers. This helps reconcile the hard to understand fact that a country with 5.5 percent unemployment is in a recession. Yet culturally as well, there is pressure to keep the appearance of a well oiled machine. This is understandable. It sounds better to say 5.5 percent unemployed rather than trying to explain that 34 percent of your workforce is working under the non-regular category. It is similar to the quoting in our own recession that 9.8 percent unemployment figure when the under utilization rate is up to 17 percent. That is why the recession feels more painful.

It is an interesting name to call a category of workers “dispatched” workers. As in disposable. You call them in for a job. When it is done, contract is up and you move along. Many people in the U.S. are now feeling that. Many people working in firms have seen contract assignments instead of actually hiring a person for the job. In terms of productivity this helps the firm’s bottom line but does a number on the psyche of a nation which craves security in their job. On this front sadly, it looks like the U.S. is following in the path of Japan. This is a big cultural shift and Japan had to combat this as well after their two bubbles burst.

Yet there is a glaring difference. The Yen has appreciated and the U.S. dollar courtesy of the Fed has imploded over the years:


Now you might be wondering where our economic differences begin. The above chart is a chart that we will not be seeing with the U.S. dollar. Even with the Nikkei bursting, the real estate bust, and a lost decade the Japanese Yen has appreciated against the dollar at an incredible rate. In 1985 one USD bought you 250 Japanese Yen. Today one USD will get 89 Yen. In other words, the U.S. dollar is getting weaker against many currencies.

That is why for those that live in Japan, the employment situation is tough but in terms of goods and services, prices have remained stable for nearly 20 years:


Now this would make sense. Japan does a lot of exporting and has one of the largest U.S. dollar reserves in the world. Culturally people are bigger savers than Americans. The IMF estimates that the Japan savings rate is near 25 percent. At one point in this consumption bubble expansion in the U.S. Americans had a negative savings rate. So what does this mean for the average American? Where Japan was able to meander through 20 years with prices moving sideways after there bubbles burst, the U.S. is going to have a slowly declining standard of living through slow inflation once this dis-inflation runs its course. How so? Just look at the U.S. Dollar Index:


Since 1985 the U.S. Dollar Index has fallen a stunning 54 percent. With deficits as far as the eye can see, why are we to expect the Federal Reserve and U.S. Treasury to reverse course? That is why a Japan like lost decade of stagnant prices in virtually every category including their stock market, we can expect a declining standard of living over the next decade and that is very different. And how does this translate for the American consumer? More expensive goods and a more insecure employment environment. As the chart above shows, the Japanese Yen has gotten much stronger against the dollar so we are now buying Toyota or Sony products with a weaker currency. In other words, we get less Toyotas with the same amount of dollars. And people seem to like their flat screens and foreign cars. Yet this is how we will pay for it because in the end there is no free lunch.

The same thing will happen with China. Slowly we will see prices creeping up. Yet localized items like real estate will remain weak because wages will move sideways since a larger part-time labor force will bring home less money. So people will need to make due with less money. Short of another real estate bubble, prices will move sideways or slightly lower. Think it can’t happen? Look at Japan and as we are pointing out, they had a higher buffer to resist the double bubble pop:

20 years of stagnant real estate values. They are no where close to those peak levels and may never see them again. The Nikkei after collapsing hit the 20,000 mark in five trend waves that were spread out over 10 years! Up and down with an overall trend lower. Where is the Nikkei today? Slightly over 10,000. This is our optimistic scenario. If we get a lost decade we will be fortunate. There is simply no other way to pay the trillions in debt we have.

Politically no one can say they are for a weak dollar policy but that has been the case for over 3 decades. Every politician has fed into the spend every penny you got consumerism culture of the U.S. The bill is now due. How do we pay is the big question. To go from a society that saves zero to one that saves 25 percent won’t happen over night (or ever for that matter). We need to save more for longer term prosperity but look at current policies. Tax rebates? Cash for clunkers? It is merely masking the symptoms of the deeper problem.

It is no coincidence that since the stock market bottom in March that the U.S. dollar has tanked while the market has rallied. A 15 percent decline in a currency over 7 months is no small thing. Yet the U.S. Treasury and Federal Reserve seem destined to go down this path. I think we can learn a lot from the Japan situation. Similar bubbles. Similar policy measures. Yet different people and spending habits. Unlike Japan, our currency will not appreciate. Why would it? Our central bank is offering near nothing in return via the interest rate just to keep Americans spending money they don’t have. China and Japan will only allow this because it keeps their manufacturing bases humming. A strong currency isn’t always good. Just ask some countries in Europe including Spain with 20 percent headline unemployment. But how long can this go? It can’t go on forever. Imbalance in trades, especially this big usually get balanced in dramatic fashion.


Way back in 1991, I began to learn the truth about the privately owned Federal Reserve Banking system. My research led me to connect the dots between the disaster that struck America in 1913: The fraudulent ratification of the Sixteenth and Seventeenth Amendments and the Federal Reserve Act. In order to syphon off the wealth of America, it was necessary to create two entities to get the job done: The so-called income tax amendment and the unconstitutional central bank. Lest the states should decide to rear up their heads over all this, the Seventeenth Amendment was fraudulently declared ratified and the states lost their right of representation in Congress.

Contrary to popular belief and propaganda by the ignorant in the controlled media and special interest groups, the federal income tax does not apply to domestic Americans. However, that fact of the law as its written doesn't seem to matter to judges, U.S. Attorneys and companies out there who thrive on "tax season." Pay up or go to jail.

Tommy Cryer is an attorney in Shreveport, Louisiana. He defied the system. Not because he doesn't want to "pay his fair share," but because he knows what the IR Code says and decided to take a stand for the truth. Even at great expense to himself -- like so many others over the decades. Tommy was indicted and went to trial. He was acquitted in July of 2007 and went on a mission. Truth Attack was born and the results have been nothing short of amazing.

While Tommy was acquitted, other fine Americans like Sherry Jackson, are rotting in federal prisons. Not because this dear lady broke the law, but because the federal government has become lawless. Ignorant and/or cowardly juries continue to convict. Enough is enough. We cannot end the income tax one prison sentence at a time.

I don't want to see one more American go to prison because thugs are running our courts and the U.S. Department of Justice's tax division prosecutors. I don't want to see one more American sucked into these scams run by cock roaches out there who claim to "keep the IRS out of your life." All well and fine until you're the one indicted. Then the cock roach who sold you the silver bullet is no where to be found. The latest rage being the dangerous and bogus OID-1099 scam.

Prohibition was ended because the country finally got fed up with the violence, corruption and graft and said no more. Take four minutes to watch this video of Sen. Harry Reid explain that the income tax is purely voluntary...uh, well, kinda, sorta. This pathetic pantywaist is the quintessential example of a professional liar.

Education is the key to getting the American people away from the taxing scams being sold out there ("lower taxes", Fair Tax, Flat Tax, VAT) and get them to understand the law as it's written. When enough Americans find out the truth, then we will see the real solution: No more federal income tax to feed the FED, unconstitutional, immoral invasions of foreign countries, foreign welfare, transfer payments - the sweat of YOUR labor - to the communist UN, the IMF, BIS and the list goes on. The absolute fleecing of the American people to enrich a cabal of evil people at the highest levels of governments and banking concerns world wide.

What do people think is going to happen next April 15th when all this debt that's been created since Bush, Jr., signed off on the first round of illegal bank bail outs? Pile on the TRILLIONS of non existent debt money the Democrats and usurper in the Red House have shoved down our throats this year and the recipe is going to be disaster. How about that so called 'stimulus money' people received from the thieves in Congress?

April 26, 2009. What stimulus giveth, IRS may taketh: The Internal Revenue Service has fessed up about problems with the withholding tables but hasn't done squat to warn "taxpayers" what's coming. Ah, the great withholding taxing scheme. Congressman Ron Paul has twice tried to get bills through Congress to eliminate this massive rip off; those bills died under Republican controlled Congresses.

Tommy's organization is about to embark on a massive educational effort in the State of Florida. I hope you can be part of it and attend the seminars. Like my state (Texas), Florida has no state income tax so there is no conflict of interest. If you're wondering what I'm talking about here, please watch the video in the links section below, item 3. It is constitutional attorney, Larry Becraft. This video was shot live at an event I put on in 1998. On that video, Larry explains about the federal income tax and the states who have a state income tax.

First, go to Truth Attack's web site and find out how this nationwide effort has been getting the truth to the American people.

Second, here is a list of cities for the truth train:

Oct. 31, Staff arrivals, staging and briefings Miami (Hollywood Holiday Inn)
Nov. 1, Lost Art Seminar Hollywood Holiday Inn 10 a.m.-3 p.m.; depart for Naples/Ft. Myers
Nov. 2, Lost Art Seminar at Three Oaks Banquet and CC, Estero
Nov. 3, Lost Art Seminar at The Westshore Hotel, Tampa
Nov. 4, Lost Art Seminar at ___________________, Ocala
Nov. 5, Lost Art Seminar at (tentatively) The Peabody Hotel, Orlando
Nov. 6, Lost Art Seminar at (tentatively) Jacksonville Marriott, Jacksonville
Nov. 7, Brief News Conference/Rally at Capitol steps and Lost Art Seminar at either the Tallahassee Civic Center or the Tallahassee Antique Car Museum
Nov. 8, Staff departures

Seating is limited in all of these venues. None of them will be able to seat more than 500. Early registration is strongly recommended. While Tommy, volunteers and speakers iron out the last minute details, make your plans now to attend these events.

Full information on each of these locations is here.

This is a document Tommy put together called The Memorandum. It is a bit of a read, but if you really want to understand tax law as it applies to mandatory filing of income tax returns, study it. Don't let fear and lies keep you from the truth.

[Note: Free email alert service is available on my web site. Notification of upcoming votes and important information you should know.]

Learning links:

1 - Income tax causes crime
2 - The Right Argument on Taxation
3 - Larry Becraft video

© 2009 - - All Rights Reserved

Richard Gage, AIA at the Sacramento Chapter of the American Institute of Aeronautics and Astronautics

On October 22, Richard Gage, AIA, will speak to the Sacramento Chapter of the American Institute of Aeronautics and Astronautics (AIAA). This will be a very important event, being the first time the evidence for controlled demolition at the World Trade Center will be presented to an audience of aerospace professionals. The title of Mr. Gage's talk is "Analysis of WTC Failure Modes." The event will be held at the California Aerospace Museum at McClellan, CA. (Photo is the large display of the museum's logo at the entrance to the museum grounds.) Dinner begins at 6:30 p.m., with the talk at 7:00 p.m. Call 916-643-3192 for information.



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Thanks. John Parulis, media services,

NEED HELP - Important* I need someone who has had Foreclosure Papers Filed against them In California - for a Class Action Lawsuit!

Please Help me!

I need someone who has had foreclosure papers filed against them in California. The person needs to be willing to be the representative of the people who are being foreclosed on!

I had contacted large class action law firms last week. due to the Kansas Supreme Court ruling against MERS - I have wanted to start a national class action lawsuit to stop the foreclosures of MERS. We are talking 60 million homeowners have their mortgages through MERS.

The servicers of the loans and banks ultimately go through MERS. So no matter who the mortgage is paid to - MERS may be the company behind it.

The firm is seriously considering taking it on - they will be having a meeting tomorrow with all the attorneys of the firm to discuss it.

BUT they need a representative to be on the class action suit. They can not find one themselves nor give me any names of people to contact (it would be unethical). So I am needing to find one myself.

They want someone in California - L.A. preferably - that is where they are. But not necessary to be L.A.

I am trying to find someone TODAY so tomorrow when they discuss it - they already have someone as the representative.


this is to ultimately HELP 60 million homeowners.

I asked once something is filed - if they could file and injunction against anymore foreclosures of MERS while the case is opened. He said YES they would!

That means, if this is nation wide - NO one with a mortgage that goes through MERS would be foreclosed on (if judge agrees to it).


This is important.


It may have to go to a state by state class action - that will be discussed also tomorrow.

I will give the name of the attorney and phone number to the person that contacts me to be the possible representative - I will not take any personal info.

I will simply give you the attorney's info -I do not want to post it here on the board.


To let everyone know - Countrywide, Wells Fargo, Bank of America, Litton Loan - the list goes on and on goes through MERS - you don't pay your mortgage to them every month - you may not even know they are the people behind your mortgage. But the majority of mortgage companies are MERS companies!

'Wall Street's Naked Swindle' Matt Taibbi

Check this link .......

israel killed John Kennedy- JFK by Hesham Tillawi

Check this link ......

More Americans fall behind on debts: Equifax

NEW YORK (Reuters) - U.S. consumers are increasingly late paying off loans on their primary home, as the highest unemployment in a quarter of a century pushes up delinquency rates on home loans and most other types of loans, according to a monthly report by the Equifax credit bureau.

"Every major consumer product line, in terms of delinquency, is up again, except for (credit) cards," said Dann Adams, president of U.S. Information Systems.

Among U.S. homeowners with mortgages, a record 7.65 percent were at least 30 days late on payments in September, up from 7.58 percent the previous month. The rate of delinquencies is more than double the 3.55 percent rate in September 2007, according to Equifax (EFX.N).

The rate of subprime mortgage delinquencies rose slightly to 41.36 percent. Early-stage delinquencies are an initial warning sign of potential future defaults, which in turn drive home foreclosures. The large supply of bank-owned homes reaching the market has helped prevent a strong recovery in prices.

Home equity and auto loan delinquencies also rose, both sequentially and from a year ago, but delinquencies on student loans have held steady during the recession.

Demand for student loans is soaring, up 15 percent from a year ago, as more people stay in school longer or go back to school to improve their job prospects. It is the only area where credit is expanding.

"We've never seen this dramatic growth before," Adams said about student loans.


Data for the credit trends report is based on Equifax's more than 200 million files of U.S. consumers using credit.

A notable characteristic of the current economic downturn is that, unlike in past recessions, borrowers are more likely to fall behind on multiple types of credit, rather than just one or two.

Many households are staying current on credit cards and auto loans rather than on other types of loans, because cards carry higher interest rates and are a last resort pay for necessities.

For some, the burden is too much. Personal bankruptcies continue to rise, up 40 percent from a year ago. Filings of 1 million so far this year are approaching 2008's total of 1.1 million.

Meanwhile, the U.S. jobless rate -- at 9.8 percent, the highest since 1983 -- is both causing consumers to seek out less credit, and lenders to offer fewer loans to limit risk.


Consumers have become so leery of debt that total consumer debt has fallen by more than $440 billion, or 3.8 percent, from its peak in the third quarter of 2008, to about $11 trillion.

Consumers do not yet feel confident about job prospects and remain nervous about home values, and they are saving more. The estimated savings rate, at 3.71 percent in the third quarter, is well above the 1.30 percent rate a year ago or 0.20 percent in the first quarter of 2008.

And while many consumers are not seeking new debt, neither are lenders eager to provide it.

New credit cards issued are down by half from July 2008. The proportion of cards going to consumers with the best credit scores has almost doubled. The card industry was among the first areas of consumer credit to tighten underwriting standards, according to Equifax.

Top credit card issuers include JPMorgan Chase & Co (JPM.N), American Express Co (AXP.N), Discover Financial Services (DFS.N), Bank of America Corp (BAC.N) and Citigroup Inc (C.N).

For current trends to reverse, consumers need to feel more confident about jobs prospects and see rising, or at least stable, home values.

"It's a Catch-22," Adams said. "We won't see a growing economy until consumers start spending, but consumers aren't spending because they don't feel good about the economy."

(Editing by Steve Orlofsky)





































U.S. Stock Markets Disconnected from Reality

Earlier this year, I predicted that the 2009 rally in U.S. stocks could bring the Dow Jones Index as high as 10,000. It looks like that level has been achieved. If, at this point, the index reverses course, I would have made a fairly good prediction.

However, it is important to get beyond the charts and look at the fundamentals. The furious six-month rally in the stock market has certainly not been mirrored by the economy as a whole. Instead, the country remains in recession, with unemployment continuing to rise and corporate earnings continuing to decline. This has pushed up trading multiples to the point that where value is now a distant memory. How could the stock markets have recovered so strongly in the face of economic recession?

First, this rally is mostly about the financial sector. The U.S. government decided that, no matter what the cost to the citizen, the major banks had to be saved. Bank losses were transferred to public books and unprecedented funds were showered on the banks to keep them solvent. Bank borrowing costs were reduced to near zero and, for the first time, interest was paid on reserves held at the Fed. Many of these banks were designated as ‘too big to fail,’ so they became a nearly risk-free bet.

The result: bank profits skyrocketed. Just today, JP Morgan reported that profits surged sevenfold from the second to the third quarter of this year! In fact, over the past six months, stock performance of financial sector firms was 66% better than the S&P 500 as a whole.

Second, the rally is mostly inevitable bounce. In the third quarter of 2008, in the face of collapsing stock and commodity markets, investors piled into cash instruments such as Treasuries. However, once the crisis appeared to pass, the same investors fled these zero-return ‘investments’ back into corporate debt, and then equities. Such massive fund flows have provided the tide upon which the current rally is based.

Third, despite the fact that the economy is in recession and corporate earnings are falling, government officials have been furiously attempting to boost market sentiment. They have been strongly supported by Wall Street cheerleaders in the media, with statements such as “earnings came in ahead of estimates” and “we see recovery in the next quarter.”

Finally, even shell-shocked private investors have been drawn into equities, seemingly desperate to make good their losses of the past year. Normally, such a surge in private investment would presage a fall in markets.

All the while, despite extensive new government hiring, U.S. unemployment has risen to an official level of 9.8 percent, and retail sales have fallen. In fact, the real rate of unemployment has reached almost 20 percent!

Meanwhile, the U. S. dollar continues to plunge, taking a large bite out of the true gains made by the surging Dow. U.S. interest rates are likely to rise, making bond and stock markets increasingly dangerous.

In other words, to the extent that the rally persists, it appears to be growing longer in the tooth. But can as much be said for similar rallies happening around the world?

The worrying economic and financial conditions in America are in stark contrast to those of countries such as Brazil, Russia, India and China (BRIC), and those such as Canada, Australia and New Zealand (CAN), who supply the BRIC countries with much of their raw materials.

Some American investors have indeed increased their exposure to BRIC-CAN stock markets. However, in view of the real health and strength of these economies relative to those of the United States, it is surprising how under-weighted they remain in most Americans’ portfolios.

It’s best to rebalance before this ‘rally’ is declared dead. Though troubling for their irrationality, situations like these can be very profitable for the fundamental-focused investor.

Ron Paul On Dip*hit MSNBC-ED Show-Lindsey Graham Confrontation

Check this link ........