CIA may have dosed entire French village with LSD

French bread spiked with LSD in CIA experiment

A 50-year mystery over the 'cursed bread' of Pont-Saint-Esprit, which left residents suffering hallucinations, has been solved after a writer discovered the US had spiked the bread with LSD as part of an experiment.
An American investigative journalist has uncovered evidence suggesting the CIA peppered local food with the hallucinogenic drug LSD
In 1951, a quiet, picturesque village in southern France was suddenly and mysteriously struck down with mass insanity and hallucinations. At least five people died, dozens were interned in asylums and hundreds afflicted.
For decades it was assumed that the local bread had been unwittingly poisoned with a psychedelic mould. Now, however, an American investigative journalist has uncovered evidence suggesting the CIA peppered local food with the hallucinogenic drug LSD as part of a mind control experiment at the height of the Cold War.
The mystery of Le Pain Maudit (Cursed Bread) still haunts the inhabitants of Pont-Saint-Esprit, in the Gard, southeast France.
On August 16, 1951, the inhabitants were suddenly racked with frightful hallucinations of terrifying beasts and fire.
One man tried to drown himself, screaming that his belly was being eaten by snakes. An 11-year-old tried to strangle his grandmother. Another man shouted: "I am a plane", before jumping out of a second-floor window, breaking his legs. He then got up and carried on for 50 yards. Another saw his heart escaping through his feet and begged a doctor to put it back. Many were taken to the local asylum in strait jackets.
Time magazine wrote at the time: "Among the stricken, delirium rose: patients thrashed wildly on their beds, screaming that red flowers were blossoming from their bodies, that their heads had turned to molten lead."
Eventually, it was determined that the best-known local baker had unwittingly contaminated his flour with ergot, a hallucinogenic mould that infects rye grain. Another theory was the bread had been poisoned with organic mercury.
However, H P Albarelli Jr., an investigative journalist, claims the outbreak resulted from a covert experiment directed by the CIA and the US Army's top-secret Special Operations Division (SOD) at Fort Detrick, Maryland.
The scientists who produced both alternative explanations, he writes, worked for the Swiss-based Sandoz Pharmaceutical Company, which was then secretly supplying both the Army and CIA with LSD.
Mr Albarelli came across CIA documents while investigating the suspicious suicide of Frank Olson, a biochemist working for the SOD who fell from a 13th floor window two years after the Cursed Bread incident. One note transcribes a conversation between a CIA agent and a Sandoz official who mentions the "secret of Pont-Saint-Esprit" and explains that it was not "at all" caused by mould but by diethylamide, the D in LSD.
While compiling his book, A Terrible Mistake: The Murder of Frank Olson and the CIA's Secret Cold War Experiments, Mr Albarelli spoke to former colleagues of Mr Olson, two of whom told him that the Pont-Saint-Esprit incident was part of a mind control experiment run by the CIA and US army.
After the Korean War the Americans launched a vast research programme into the mental manipulation of prisoners and enemy troops.
Scientists at Fort Detrick told him that agents had sprayed LSD into the air and also contaminated "local foot products".
Mr Albarelli said the real "smoking gun" was a White House document sent to members of the Rockefeller Commission formed in 1975 to investigate CIA abuses. It contained the names of a number of French nationals who had been secretly employed by the CIA and made direct reference to the "Pont St. Esprit incident." In its quest to research LSD as an offensive weapon, Mr Albarelli claims, the US army also drugged over 5,700 unwitting American servicemen between 1953 and 1965.
None of his sources would indicate whether the French secret services were aware of the alleged operation. According to US news reports, French intelligence chiefs have demanded the CIA explain itself following the book's revelations. French intelligence officially denies this.
Locals in Pont-Saint-Esprit still want to know why they were hit by such apocalyptic scenes. "At the time people brought up the theory of an experiment aimed at controlling a popular revolt," said Charles Granjoh, 71.
"I almost kicked the bucket," he told the weekly French magazine Les Inrockuptibles. "I'd like to know why."
http://www.telegraph.co.uk/news/worldne ... iment.html

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U.S. Taxpayers on Hook for $5 Trillion of Fannie, Freddie Debt ... No Matter What Barney Frank Says

House Financial Services Chairman Barney Frank caused a bit of an uproar Friday when he suggested the U.S. government does not guarantee the debts of Fannie Mae and Freddie Mac.

Rep. Frank later recanted and backed a Treasury Department statement reassuring investors that, yes, Fannie and Freddie Mae debt is guaranteed by the U.S. government. "Going forward," he said in a statement, we "will make sure that there are no implicit guarantees, hints, suggestions, or winks and nods...we will be explicit about what is and is not an obligation of the federal government."

But after years of winks and nods, there's no doubt that Fannie and Freddie now enjoy an explicit guarantee, according to most observers. The U.S. government placed Fannie Mae and Freddie Mac in conservatorship in September 2008: "This means that the U.S. Taxpayer now stands behind $5 trillion of GSE debt," according to the Congressional Research Service.

The problem is that $5 trillion of so-called agency paper is not treated as if it is a debt of Uncle Sam for accounting purposes, says Richard Suttmeier, chief market strategist at Niagara International Capital and ValuEngine.com.

"Get it on the balance sheet - that's where it belongs," Suttmeier says. "Add it to the $14.2 trillion in [federal] debt and let's move on."

Another Time Bomb Ticking But $5 trillion is a lot of money - even by government standards -- and moving on may be the problem because of ongoing problems in the housing market, Suttmeier says. "There's a general concern on Main Street U.S.A. that ‘my neighbors are throwing in their keys, there's more for sale signs in my community...do I want to buy a new home, risking there's still downside risk to housing?' "

Noting the Case-Shiller 20-City Home Price Index is still 50% above 1999 levels and mortgage delinquencies are still rising despite the rebound in GDP, Suttmeier says "victory is nowhere in sight, particularly when the drain we're going to see from Fannie and Freddie is unlimited losses between now and the end of 2012 -- on top of the $400 billion that's already been allocated."

Coincidentally (or not), the FDIC is allowing U.S. banks until 2012 before forcing them to fully write-down bad or toxic loans, which is "another time bomb ticking," Suttmeier says. "They're hoping the public market comes back into the mortgage arena, which is going to be hard to do."

Unlimited losses from Fannie and Freddie? Keeping zombie banks alive on the backs of the taxpayer? Suttmeier's right: There's no accounting for that.

Revised Missouri budget shows $700 million decrease in revenue this year

The state announced Thursday that year-to-date revenues are being revised to 12.7 percent below fiscal year 2009 as collections continue to fall below projections.

The state fiscal year runs from July 1 to June 31.

Linda Luebbering, state budget director, said that general revenue collections are projected to decline to $6.73 billion, a $700 million decrease from the 2009 fiscal year, making it largest decline in state history.

In addition, Luebbering said in a press release, even as the economy begins to rebound, state revenue growth will continue to lag for a prolonged period of time.

"Given the economic situation, next year's revenue collections are also anticipated to fall below the original projection that was agreed to in January by the House, Senate and Administration," she said.

"The governor has asked the House and Senate to work together to develop a new consensus revenue estimate, with preliminary estimates indicating revenue will fall short by over $200 million."

-- News-Leader

States may hold onto tax refunds for months

Residents eager to get their state tax refunds may have a long wait this year: The recession has tied up cash and caused officials in half a dozen states to consider freezing refunds, in one case for as long as five months.

States from New York to Hawaii that have been hard-hit by the economic downturn say they have either delayed refunds or are considering doing so because of budget shortfalls.

"It's an indicator of how bad it is," says Scott Pattison, executive director of the National Association of State Budget Officers. "You know things are bad when you have to do that."

New York, hit with a $9 billion deficit, may delay $500 million in refunds to keep the state from running out of cash, says Gov. David Paterson.

WHERE DOES YOUR MONEY GO? Enter your salary and see how tax rates have changed over time

Hawaii's Department of Taxation says some residents may not see state income tax refunds until the end of August, The Honolulu Advertiser reported. It was part of a plan by Gov. Linda Lingle to deal with a revenue drop-off by pushing costs into the next fiscal period, which begins in July.

States often do not have a timetable for refunds because delays are based on cash flow. Most states typically issue refunds within 30 days.

Delaying refund checks isn't unprecedented, Pattison said, but it is something virtually no politician wants to do, because taxpayers are owed the money and in most cases want it fast. Delays in paying refunds and other state bills can trigger interest on those overdue payments, depending on state laws, he said.

California's massive budget shortfall of more than $20 billion last year prompted it not only to delay tax refunds but to issue billions of dollars in IOUs to vendors and others who were owed money. State Controller John Chiang called the delayed payments a "shameful chapter in the State's history" when the IOUs ended last September.

California still faces budget problems, but Chiang said that revenue is running ahead of projections so far this year, lessening the threat of a repeat.

"Californians should expect to receive their hard-earned tax refunds on time," Chiang said.

The delays come as some states continue to face deep budget holes, even as economists say the nation as a whole has begun recovery. In a recent report, the budget officers group and the National Governors Association said state fiscal conditions "have continued to worsen," and that state revenues can be expected to lag one to three years behind a national recovery from recession.

This fiscal year, the report said, 36 states have cut nearly $56 billion in spending, and 30 states have cut funding to public and higher education.

Idaho facing revenue shortfall

BOISE - Idaho may see more budget cuts next year.

At the state of the state address back in January, Governor Otter announced the state faced an 83 million dollar budget shortfall.

To pick up the slack, public areas like schools took massive cuts.

Now the state is losing even more money.

Idaho has 41 million fewer dollars than Governor Otter projected back in January.

And in an already troubling economic time, that's not a good sign for public institutions.

"The signs are not good. The fact that we're down another 15-million dollars in February in income tax is not a good sign," said Governor Otter. "We've spent most all the rainy day funds. There's no savings like we had last year. We had the opportunity to plug some money back into the system because we had some savings accounts. We've spent the savings accounts."

I asked Governor Otter what we will do if we don't make up this tax shortfall later in the year.

His answer was a little vague.

"Caution on how much money we spend and how much commitment we make on the that money should be the order of the day," said Governor Otter. "Obviously we have to change with the income."

But economists are hopeful.

They think a turnaround is just around the corner.

"You will see some improvement in tax revenues in the second half of the year as the economy gets better," said Jeff Thredgold, an economic futurist. "Communities in the state are trying to be as prudent as they can with expenditures. They're not taking the easy way out like Oregon did. No massive tax increase."