Sunday, September 6, 2009

Gold Is Speaking

In the current global manic rush by central banks to inflate and by governments to spend that paper, there are a few observers who have expressed concern that at some future date this wholesale, last ditch Keynesian and Statist approach just might actually produce "inflation."

Many Wall St. types argue "No, inflation is not the problem and is not likely to be the problem for some time. And besides, gold is quiet, not signaling any concern about inflation." Though they like to espouse free market generalities from time to time, these same Wall St. types actually want the State(s) to intervene to protect this or that asset class – to which they are personally attached and now sinking with. While investors are down in most asset categories by 40% in 2008, the orthodox investor and his portfolio manager can’t weather another 20% drop this year! "Oh sure, Keynes was full of it, but good grief we can’t stop this stimulus because it just might work. It must work!" All intellect out the window, it’s desperation time, wish-fulfillment time on Wall St! And how short their memories – failure to remember the policies of the Fed, from August, 2007 onward when the Fed – armed to the teeth with "surprise" interventions – sought time-after-time to halt the ratcheting decline in equity and real estate prices. Was that a success? Or did those penny-in the-fusebox actions merely delay and therefore intensify the decline to the point where a market correction morphed into a collapse? So, let’s do it some more and find out yet again! We can then worry about an "exit strategy" later, we are told.

So, with that as a backdrop, what has been going on with the various "asset classes" in recent years? And especially, what if anything does gold tell us about the risk of inflation? Is it really the quiet unconcerned metal that these State apologist economists claim? Historically gold is a wise metal that often anticipates inflationary and deflationary trends; defining inflation in the Austrian School manner – as growth in the money supply (s), which we now must think of globally, not merely as a U.S. monetary and fiscal event.

With a few comments, I provide some stunning charts that speak volumes about the actual underlying trends, asset value shifts, safety of capital, etc., all of which are reflective of macro-investment decisions that are being made, net-on-balance, by millions of global investors. And they speak volumes!

I begin with a chart that deals with the question: How have commodities done as an alternative or "balancing" asset class over the past years? In this case I measure the CRB Index’s monthly closes v. the monthly closes of the Dow Jones World Index (data begins for this equity index only in 1994, therefore the comparative chart begins then). Well, the answer is pretty clear.

Depending upon when bought into commodities as an alternative asset class (which might balance your equity holdings), you either won or lost several times over that 15 years. In fact an astute trader did well to time some swings in that relationship. But the long-term answer is that commodities were really no better and no worse than global equities over the past 15 years, and presently commodities are actually sinking at a faster pace than equities. So commodities seem to be unconcerned about "inflation" at least as mainstream economists are prone to define inflation.

The same period of time (1994 to present) gold in relation to global equities. Obviously something happened to gold relative to global stocks, something that changed its trend tone with drama in late 2008. The value (price) of gold in relation to that basket of assets exploded in a quantum manner, unlike the opposite behavior of the commodity asset class. Might I point out that the timing of this massive valuational change in gold relative to stocks was coincident with the panic by governments to reflate the collapsing bubble that a combination of their policies has created a handful of years before.

I have watched gold’s behavior v. other commodities for 35 years, and back in the hyper-inflationary times of the late 1970s’ up to 1980, gold soared, but so did the price of grains, meats, fertilizer, etc. Gold was not singularly special. It was part of a general commodity bubble. This time, beginning sharply in late 2008, Gold has made a massive statement and done it in what most mainstream economists continue to define as a non-inflationary/deflationary market environment. Gold says to those economists – define your concepts more accurately fellows. There is massive inflation (monetary expansion accompanied by State power expansion) and it is underway at full throttle. Beneficiary this time is gold (and silver) – almost exclusively. This explosion in relative valuation of gold is more historic and dramatic than any I have heretofore seen. Would not even surprise to see the net price of gold (v. dollar) engage in something comparable – as investors channel their bets onto the back of the lone horse that is still standing and reliable. Though that net price consequence is actually not a necessary event, because gold already has accomplished its role as a State-proof investment asset.

Finally, the chart below shows gold’s behavior v. the broad commodity asset class. For 30 years it moved in a range v. other commodities, no better, no worse. That sedate range of valuation fluctuation is now over, done with. Gold has made a statement – if your eyes are wide open. Gold sees inflation NOW, and has already begun to respond in an historic manner.

September 5, 2009

J. Michael Oliver [send him mail] has provided proprietary technical analysis and consulting for the past 20 years to large asset management institutions. He is also a hedge fund manager.

Copyright © 2009 by LewRockwell.com. Permission to reprint in whole or in part is gladly granted, provided full credit is given.

Candidate for New Jersey governor calls for second 9/11 Commission

Check this link ...... http://tinyurl.com/mwcmye

The Best Enemies Money can buy

Check this link ...... http://tinyurl.com/llaagp

Appeals court rules against Ashcroft in 9/11 case

A federal appeals court has ruled that former attorney general John Ashcroft may be held liable for people who were wrongfully detained as material witnesses after the September 11 2001 terrorist attacks.

In a harshly worded ruling handed down today, a three-judge panel of the 9th US circuit court of appeals called the US government's use of material witnesses after September 11 "repugnant to the Constitution and a painful reminder of some of the most ignominious chapters of our national history".

The court found that a man who was detained as a witness in a federal terrorism case can sue Ashcroft for allegedly violating his constitutional rights. Abdullah Al-Kidd, a US citizen and former University of Idaho student, filed the lawsuit in 2005, claiming his civil rights were violated when he was detained as a material witness for two weeks after 9/11.

Al-Kidd said the investigation and detention not only caused him to lose a scholarship to study in Saudi Arabia, but cost him employment opportunities.

He argued that his detention exemplified an illegal government policy, created by Ashcroft, to arrest and detain people particularly Muslim men and those of Arab decent as material witnesses if the government suspected them of a crime but had no evidence to charge them.

Al-Kidd's attorney, Lee Gelernt with the ACLU, said the ruling by the three-judge panel had implications reaching far beyond the government's actions in detaining material witnesses post-September 11. The court flatly rejected Ashcroft's claims that has absolute immunity from such lawsuits because of his job, Gelernt noted.

"The use of the material witness statute as a post-9/11 detention tool is one of the least understood parts of the post 9/11 landscape, but it has enormous implications because it was done in secret and the government has never renounced the policy," Gelernt said. "Our hope is that we can now begin the process of uncovering the full contours of this illegal national policy."

The 9th circuit judges said Al-Kidd's claims plausibly suggest that Ashcroft purposely used the material witness statute to detain suspects whom he wished to investigate and detain preventively.

"Sadly, however, even now, more than 217 years after the ratification of the fourth amendment to the constitution, some confidently assert that the government has the power to arrest and detain or restrict American citizens for months on end, in sometimes primitive conditions, not because there is evidence that they have committed a crime, but merely because the government wishes to investigate them for possible wrongdoing, or to prevent them from having contact with others in the outside world," judge Milan D Smith Jr, for the majority. "We find this to be repugnant to the Constitution and a painful reminder of some of the most ignominious chapters of our national history."

Five more banks fail -- 89 so far in 2009

NEW YORK (CNNMoney.com) -- Five small regional banks were closed by regulators on Friday evening, pushing 2009's tally so far to 89 institutions. Of the five failures, two were in Illinois, and there was one each in Arizona, Iowa and Missouri.

Customers of the banks, however, are protected. The Federal Deposit Insurance Company, which has insured bank deposits since the Great Depression, covers each customer account up to $250,000.

In Illinois, Platinum Community Bank, in Rolling Meadows, and InBank, in Oak Forest, were the latest institutions to be cosed by regulators. This makes for a total of 15 failed Illinois banks this year. The last one to go under was Mutual Bank, in Harvey, on July 31, 2009.

The Office of Thrift Supervision was unable to find a buyer to take over the assets of Platinum Community, which were estimated at $345.6 million with deposits of $305 million. As a result, the FDIC will begin mailing customers checks for their insured deposits beginning on Tues., Sept. 8.

That means customers are out of luck over the weekend and cannot access any of their Platinum Community accounts. "The bank is gone. It no longer exists," said David Barr, spokesman for the FDIC. "We couldn't find an appropriate buyer. We don't do that very often."

For those Platinum Community customers expecting direct deposits from the federal government -- such as Social Security and Veterans' payments -- MB Financial Bank will handle the transactions. But customers must use the MB Financial branch at 2251 Plum Grove in Palatine, Ill., to access those funds.

Unlike Platinum Community, MB Financial agreed to purchase the assets and deposits of Illinois' other failed bank, InBank. MB Financial receives InBank's $212 million in assets and $199 million in deposits, and customers' funds are automatically rolled over to the new institution.

The three branches of InBank will open as normal on Sat., Sept. 5, as new MB Financial outlets. Customers can continue using their debit cards and writing checks as normal.

In the West, the assets and deposits of First State Bank of Flagstaff, Ariz., were sold off to Sunwest Bank, based in Tustin, Calif. All First State customers -- totaling $95 million in deposits -- automatically become new Sunwest clients.

This is the third bank failure in Arizona this year. The last institution to go under was Union Bank in Gilbert, on Aug. 14, 2009.

Check writing privileges and debit card transactions will continue as normal through the weekend. On Tuesday, all six branches of First State will reopen as outposts of Sunwest Bank.

In the Midwest, Vantus Bank, in Sioux City, became Iowa's first bank to fail in 2009. It had been nearly a decade since the state faced a bank closure.

Great Southern Bank of Springfield, Mo., is assuming Vantus' $368 million in deposits. It will take a fwe weeks for Great Southern to finalize the transaction, but until then customers can continue using the existing branches of Vantus as well as write checks and use their debit cards. Great Southern is also managing Vantus' $458 million in assets until it can sell them off later.

Customers of First Bank of Kansas City, in Kansas City., Mo., can now call Great American Bank of De Soto, Kan., their financial home. When the bank was closed on Friday, it became Missouri's second failure of 2009. When the sole branch of First Bank reopens on Saturday, it will be an outpost of Great American Bank. Customers can continue writing checks and using their debit cards as normal.

Great American Bank bought the banks' $16 million in assets and approximately $15 million in deposits.

The FDIC estimates that these five bank failures will cost the Deposit Insurance Fund a total of $401.3 million.

Anyone who needs further information about what deposits or insured or needs additional details on their bank's failure can visit www.fdic.gov or call 1-800-537-4048.

China agrees to buy 50-billion-dollar IMF bonds







If you can listen please check this link ....... http://english.people.com.c...

The International Monetary Fund(IMF) said on Wednesday that China has agreed to buy the first bonds issued by the agency for about 50 billion dollars.

IMF Managing Director Dominique Strauss-Kahn and Yi Gang, deputy governor of the People's Bank of China, have signed the agreement, the IMF said.

According to the agreement, China would purchase up to 32 billion (around 50 billion dollars) SDR, or Special Drawing Rights, in IMF notes.

"The note purchase agreement is the first in the history of the fund, and follows the endorsement by the Executive Board on July 1,2009 of the framework for issuing notes to the official sector," said the 186-nation institution.

The IMF said that "the agreement offers China a safe investment instrument. It will also boost the fund's capacity to help its membership -- particularly the developing and emerging market countries -- weather the global financial crisis, and facilitate an early recovery of the global economy."

The global economy is beginning to pull out of the worst recession since World War II, according to the institution, but recovery is expected to be sluggish and financial systems remain fragile.

As part of its efforts to boost the world economy ,the IMF completed allocation equivalent to 250 billion U.S. dollars of SDRs last Friday. That will be followed by an additional allocation of 33 billion dollars on Sept. 9.

With the two allocations totaling roughly 283 billion dollars, the outstanding stock of SDRs would increase nearly ten-fold to about 316 billion dollars.

Brazil, Russia and India -- the three other countries besides China that make up what is known collectively as the BRIC countries -- are seen as potential buyers of the IMF bonds and are also in the vanguard of developing countries' drive for greater representation in the international financial bodies.

Source:Xinhua

Swine Flu: Biggest Scam of 2009 Begins, Millions Prepare to “Protect Their Health”

The plague of modern society is preparing for the event that will quite possibly be the most dangerous thing to happen to humanity since the last great outbreak: the release of the Swine Flu vaccination. That’s right, not the flu, the “prevention.”

A “top news story” featured on AOL this morning with the brazen title “2,000 Students at Washington State University Have Swine Flu.”

The article says that “More than 2,000 students at Washington State University have come down with swine flu symptoms in just the first week of classes, school officials said Friday” (Emphasis mine).

Swine flu symptoms. What does that even mean? A runny nose? No doubt this information is based on self-reporting (like much of the “information” we have on the Swine Flu), which means that most of the students were probably hung over from the ‘first week of classes’ and reported these symptoms as potentially being the Swine Flu – because that’s what everyone is telling them it probably is.

No other information is provided in this fear-mongering article which serves no purpose other than to spread media hype in an attempt to grease the American population for the arrival of the soon-to-be-released Swine Flu vaccinations, coming soon to a doctor near you.

The article goes on to say that “A presidential panel estimates that upward of half of the U.S. population could come down with the H1N1 this year.” Oh my God, really?

Read what the Federal Health Minister of Australia has to say about the Swine Flu:

In Australia, where the winter season has begun, Federal Health Minister Nicola Roxon is reassuring parents the swine flu is no more dangerous than regular seasonal flu. “Most people, including children, will experience very mild symptoms and recover without any medical intervention,” she said.”

The article goes on to discuss that the Swine Flu is no more dangerous than any other seasonal flu, and will likely be responsible for possibly 100 death in the United States. Meanwhile, we will be mass-injecting over 75 million people with a vaccine that has been proven to be dangerous to our nervous systems.

This article
discusses Squalene, an ingredient in the Swine Flu that has been linked to very adverse symptoms which are probably worse than the Swine Flu.

As someone who works in marketing, I know a “pre-sell” when I see one. Pre-selling is an extremely powerful sales tactic in which a source that seems reputable (ie. the target audience is likely to trust the source) begins to subtly convince the intended victim, er, customer, that an upcoming product or service is worthwhile in order to increase the likelihood of selling the product once it arrives.

Dictionary.com says pre-selling is:
2) To promote (a product not yet on the market) by means of advertising.
3) To condition (a potential customer) in advance for later purchase of a product.

“But the Swine Flu vaccine is not a product ,” you say, “it’s intended to save the lives of millions of Americans!”

First of all, countless health officials and medical professionals do not agree – and I’ll bet most are afraid to speak up. Secondly, the vaccine absolutely is a product, and the drug companies are bracing themselves for the billions of dollars they are about to receive from the sale of Swine Flu vaccines.

The “pandemic” is nothing but a combination of very good marketing on the part of Drug companies, and the fear-mongering of a bunch of lemmings, the media, who maintain their station in our society by spreading fear, misinformation and half-truths.

Most people in the mainstream media are most likely just stupid, or irresponsible at worst. On the other hand, the drug companies are downright profit-hungry murderers, a plague on their fellow human beings (if they can be called humans at all).

They use us as guinea pigs for profit.

It’s difficult to blame this one on the stupidity of the America public because this is one of the most well-planned and well-executed marketing ploys in history, and one that plays on the natural human fear to protect one’s health.

How many parents will unknowingly damage their child’s future health, in an ironic attempt to protect their health, in the coming year? How will we damage future generations of humanity with our drug experimentation?

I have no doubt that future generations will look back on these last few decades as an atrocity in the annals of human history, much like we now think about shock treatment and lobotomies to cure “mental illnesses” that were largely imagined.

As has been said before, “want to become a millionaire? Invent a disease and market the cure.”

Indeed.

Legal Disclaimer for the sake of our litigious society and drug companies which have far more money than I do: I am not a doctor and all of this is my opinion. You would be advised not to listen to anything I have written here and discuss your health with a doctor before making any decisions about the Swine Flu vaccination.

The New McCarthyism

Back in the year 1947, the House Select Committee began an investigation into the Motion Picture Industry. Ostensibly the goal was to ferret out communists working in the film industry. But in actuality the US Government was concerned that Hollywood was no longer as blindly supportive of government policy as it had been only a few years earlier at the height of WW2. In particular, J. Edgar Hoover had long held the opinion that the entertainment industry should be the propaganda arm for the government in peace time as well as war.

However, as WW2 had ended, the defense establishment had lobbied for the creation of a "Cold" war against the Soviet Union, a war not actually to be fought, but constantly to be prepared for at huge cost to the taxpayers. This cost was the visible manifestation of the "Military Industrial Complex" President Eisenhower referred to in his farewell address, and many in Hollywood openly wondered just why so much more money had to be thrown into the war machine during a time of peace, and more to the point, just why we were supposed to be so afraid of the communists.

Hoover's desire to remake Hollywood into a gigantic propaganda machine had started at the end of WW1 when Hoover tried to persuade Charlie Chaplin to cease making films that portrayed authority figures as oafish buffoons. Chaplin refused, laughed at Hoover. Years later, as head of the FBI, Hoover was instrumental in having Charlie Chaplin's citizenship revoked in retaliation.

Hoover's mania with Hollywood was a seldom reported but constant factor in show business. The 1959 film, "The FBI Story" starring Air Force General Jimmy Stewart was reportedly directed by Mervyn LeRoy, but in actuality J. Edgar Hoover was personally supervising the film (and briefly appears in it, shown only from the back) to make certain the "correct" image of the FBI was shown.

In later years, FBI informants became permanent fixtures at movie studios, and spied for the FBI. When Disney Studios made "That Darned Cat", a pre-production copy of the screenplay "somehow" made its way to the FBI, which promptly sent Disney a memo expressing concern at how the FBI was to be portrayed.

[That Darned Cat]Click for full sized page. [That Darned Cat]Click for full sized page.

Likewise, when Paramount Pictures produced,"Skidoo", starring Jackie Gleason, it featured a single scene in which Gleason's character is seen fleeing a building marked,"FBI" carrying a file cabinet on his back. That one single scene prompted the following four page memo.

[Skidoo page 1]Click for full sized page. [Skidoo page 2]Click for full sized page.
[Skidoo page 3]Click for full sized page. [Skidoo page 4]Click for full sized page.

Along with "nudging" the film studios to portray certain things certain ways, the FBI did not hesitate to wreck the careers of those people it felt posed a dangerous threat to the government's public image. During the height of the FBI's COINTELPRO program, the FBI destroyed the career of actress Jean Seberg

Jean Seberg was considered a threat to the US Government because of her public support for civil rights at a time when the Civil Rights movement was starting to point out the racial bias in the draft system that placed a disproportionate percentage of black kids on the front lines of Vietnam. Seberg was also a supporter of the Black Panthers in their pre-militant days when their agenda was breakfasts for the ghetto kids, local control of school curriculum, and ending the draft.

Jean Seberg, a well known actress in the 60s, became pregnant and the FBI sent out letters to the gossip columnists identifying the baby's father as a Black Panther, in order to cheapen Seberg's image. Keep in mind that the 60s was an era in which sexual relations between blacks and whites was still considered taboo by most Americans.

The scans below are of the official FBI letter from Los Angeles to Washington D.C. asking permission for the scam.

[Seberg Letter Page 1]letter requesting permission for the smearing of Jean Seberg.

[Seberg Letter Page 2]page two of request for permission to smear of Jean Seberg

The text of the letter:

   "Bureau permission is requested to publicize the pregnancy of Jean
Seberg, well-known movie actress by (name deleted) Black Panther (BPP)
(deleted) by advising Hollywood "Gossip-Columnists" in the Los Angeles
area of the situation. It is felt that the possible publication of
Seberg's plight could cause her embarrassment and serve to cheapen her
image with the general public.

" 'It is proposed that the following letter from a fictitious person
be sent to local columnists:

"I was just thinking about you and remembered I still owe you a favor.
So ---- I was in Paris last week and ran into Jean Seberg, who was
heavy with baby. I thought she and Romaine [sic] had gotten together
again, but she confided the child belonged to (deleted) of the Black
Panthers, one (deleted). The dear girl is getting around!

" 'Anyway, I thought you might get a scoop on the others. Be good and
I'll see you soon.

'Love,
" 'Sol.,

"Usual precautions would be taken by the Los Angeles Division to
preclude identification of the Bureau as the source of the letter if
approval is granted."

Permission to use the fake letter was granted, but with the suggestion that the smear be delayed until Jean Seberg's pregnancy was in a very obvious condition.

[Seberg Letter Page 1] letter granting permission for the smearing of Jean Seberg.

The story was then run by Los Angeles Times propagandist Joyce Haber.

[Seberg Letter Page 2]Click for full size picture of the Haber Article that launched the smear.

The story was picked up by Newsweek and the international press. The shock of the story was so severe that Jean Seberg suffered a miscarriage. The funeral for the child was held with an open casket, so that the lie stood revealed in its most tragic form. Jean Seberg, her baby dead and her career shattered by this outright lie, attempted suicide several times, finally succeeding in a French Hotel.

[Seberg Letter Page 1] memo that accompanied copy of the Haber story sent to FBI files.

(The name which was redacted from the memo during the FOIA process is thought by many to have been Raymond Hewit, a Black Panther leader. His "outright lie" was far more direct. The FBI typed up a letter on official FBI stationary identifying Hewit as an informant and planted it where other Black Panthers would find it in the hopes that Hewit would then be killed.)

Following Seberg's death, the Los Angeles Times, the key instrument of her torment, issued a statement by the FBI.

   "The days when the FBI used derogatory information to combat advocates
of unpopular causes have long since passed. We are out of that
business forever."

The Senate committee that looked into COINTELPRO disagreed, however.

   "Cointelpro activities may continue today under the rubric of

By Michael Rivero
'investigation.'

Finally, no single celebrity filled the government with more fear than did ex-Beatle John Lennon. Lennon's popularity, and hence his ability to influence popular opinion, coupled with his strong anti-war stance, made him a real threat in the event the United States decided it had to go to war. For this reason, Lennon was one of the most watched celebrities, and according to Lennon's youngest son, the victim of a government assassination plot.

[Lennon 1]Click for full sized page. [Lennon 2]Click for full sized page.
[Lennon 3]Click for full sized page. [Lennon 4]Click for full sized page.
[Lennon 5]Click for full sized page. [Lennon 6]Click for full sized page.
[Lennon 7]Click for full sized page. [Lennon 8]Click for full sized page.
[Lennon 9]Click for full sized page. [Lennon 10]Click for full sized page.

Having documented the FBI's willingness to destroy anyone they feel represents a threat to the government, let us return to the days of the House Select Committee on UnAmerican Activities.

While Senator Joseph McCarthy grabbed headlines with his shouts of "Communist", Hoover set about his self-appointed task of purging Hollywood of any he viewed as "disloyal" to the United States, which meant anyone unwilling to make the movies they were told to make, when and how they were told to make them. Senator McCarthy's screed of "Communist" provided Hoover with a bludgeon he could and did use with impunity on Hollywood's creative talents. Careers were ruined. Some 400 people, mostly innocent of any actual wrongdoing, were destroyed. Some, like Jean Seberg would later do, committed suicide. Ten men (the famous Hollywood Ten), Alvah Bessie, Herbert Biberman, Lester Cole, Ring Lardner jr., John Howard Lawson, Albert Maltz, Samuel Ornitz, Adrian Scott, Dalton Trumbo, and eminent director Edward Dmytryk were jailed for contempt of Congress.

Others punished for refusing to cooperate included Larry Adler, Stella Adler, Leonard Bernstein, Marc Blitzstein, Joseph Bromberg, Charlie Chaplin, Aaron Copland, Hanns Eisler, Carl Foreman, John Garfield, Howard Da Silva, Dashiell Hammett, E. Y. Harburg, Lillian Hellman, Burl Ives, Arthur Miller, Dorothy Parker, Philip Loeb, Joseph Losey, Anne Revere, Pete Seeger, Gale Sondergaard, Louis Untermeyer, Josh White, Clifford Odets, Michael Wilson, Paul Jarrico, Jeff Corey, John Randolph, Canada Lee, Orson Welles, Paul Green, Sidney Kingsley, Paul Robeson, Richard Wright and Abraham Polonsky. Lee Grant was registered on the black list because she refused to give evidence against her husband Arnold Manoff.

Stars such as Larry Parks were destroyed because they refused to "name names" of other actors who were party members. Actor Philip Loeb threw himself out of a skyscraper window. Edward G. Robinson, never a communist, was put on a "grey list," and spent the rest of his life making B movies (except for his final role opposite Charlton Heston in "Soylent Green"). Sam Jaffe, formerly a well-known actor and Oscar winner in 1950 was registered on the black list because he refused to cooperate with the committee. He spent the next 6 years working as a math teacher and living at his sister's until he was able to return to films in 1957.

Of course, what was really involved was money. War is good for business. Business had been great during WW2 and the newly created "Cold War" was just a way to keep business good. The Military Industrial Complex NEEDED Hollywood to demonize the Soviets. Otherwise, too many people were going to ask why we were being told to be so afraid of them, and few in the government had a really convincing answer for that question. So, in order to perpetuate the Cold War, those in Hollywood who might sympathize with the designated villains had to be removed; their ruined lives a small price to pay for unending access to the taxpayers' wallets.

But that was then and this is now.

Once again vast sums of money are being spent on a war, this time a hot one and getting hotter. Once again parties with a vested interest are out to smear and destroy anyone who dares ask if the wars are worth the sacrifice of our young people (not to mention the money), indeed if there really is any point at all to the wars aside from justifying the flow of money to defense contractors.

But the Soviet Union has gone out of business. The word "communist" doesn't carry the same psychological impact it used to, so the war hawk smear squad has come up with a new one, "Anti-Semite." Like "Communist", "Anti-Semite" is used to ruin the lives of people who have not actually done anything wrong other than to challenge the war profiteers. It is a new word for an old trick, and I am amazed that they are still playing the same old game, but I guess the FBI can always find some dumb-assed idiot to fall for it and do their dirty work of wrecking a career for them.

Of course, it really isn't that new a word. Oddly enough, Charles Lindbergh the famous aviator commented in a speech in Des Moines in 1941...

Our theaters soon became filled with plays portraying the glory of war. Newsreels lost all semblance of objectivity. Newspapers and magazines began to lose advertising if they carried anti-war articles. A smear campaign was instituted against individuals who opposed intervention. The terms "fifth columnist," "traitor," "Nazi," "anti-Semitic" were thrown ceaselessly at any one who dared to suggest that it was not to the best interests of the United States to enter the war. Men lost their jobs if they were frankly anti-war. Many others dared no longer speak.

Today we are seeing once again the heavy hand of the war profiteers trying to reshape the film industry into a tool to propagandize the public into a high war-fever such that they will gladly trade their own blood for gold to line the pockets of the defense establishment. And those individuals who have the courage to speak out are attacked, and once again they are smeared to silence them. In the 1940s it was "Communist", today it is "Anti-Semite", but aside from the particular label used, the methods, goals, and morality are little changed from the days of Joseph McCarthy.

If there is a difference today it is that the American people are better educated. No longer dependent on the state schools, or controlled media, the public understands the tactics used to silence those who speak out. As a result, those who speak out are more and more not only accorded the sympathetic ear that their message deserves, but the effects of the smearing are far less ruinous than in times past.

Thus, when we see people like Charlie Sheen, Willie Nelson, Sean Penn, and Marion Cotillard speak out and survive, it sends a message that it is now permissible to speak out. This is not to say that there are not risks. Rosie O'Donnell lost her spot on "The View", but the majority of Americans understand exactly why, and understand that Rosie sacrificed a great deal trying to get the truth out. Rosie is and will be remembered as a hero for truth long after her co-hosts on "The View" are properly forgotten.

In contrast, of course, we look back at those who aided the "Commie" witch-hunts of the 1940s with deserved contempt. No doubt many aided Hoover purely to rid themselves of competition, and then tried to lull themselves to sleep with the idea that in some way they had actually done something good for the nation by wrecking their neighbors' careers. I have no doubt strong liquor played a role in this grossest of self-deception. But if the informants and smear artists of the 1940s are remembered in a poor light, that should serve as a reminder to the informants and smear artists of today. It does not matter what you do with the rest of your life, aiding the new version of McCarthyism is how history will remember you. While people like Charlie Sheen, Willie Nelson, Sean Penn, and Marion Cotillard (and to step out of entertainment, former President Jimmy Carter) will be remembered and honored for their courage, history will lump the smear artists together with Stalin's "Useful idiots", little more than no-talent opportunists for whom ratting out someone was the fastest path to advancement.

They say that history repeats itself, and indeed that is the major thing wrong with history. We are seeing history repeat itself again. We have been down this path before, in the 1940s. Whether the word is "Communist" or "Anti-Semite", Hollywood is making the same mistake all over again. And Holywood will have to live with that image in the coming decades.

The Corbett Report talks to Nathan Moulton about Activist Movie

Check out this link ...... http://bit.ly/5jBcc

MARC FABER Now you need a machine gun

Check it out why we need a machine gun ........ http://bit.ly/17aQlt

NEW Gerald Celente Interview with Goldseek Radio 9/5/09 1 of 2

Check this on You Tube ......... http://bit.ly/GzUOu

The Second Wave Of The Depression - Hyperinflation Likely

Washington DC – The second wave of the world economic depression is coming soon. Larry
Summers, the economics czar of the Wall Street puppet regime currently in power in Washington,
recently confessed to the Financial Times in an unguarded moment: “I don't think the worst is over
....” A few weeks earlier, Jacques Attali, who served in the 1980s as the main economics adviser to
French President Mitterrand, told an audience at the International Economic and Financial Forum
(FIEF) in Paris that the world might well soon face a “planetary Weimar” in the form of a
hyperinflationary depression similar to the German events of 1922 to 1923.
During the last world economic depression, the first wave came in the form of the famous New
York Stock market crash of October 1929. But this was only the beginning, and hardly the main
event. The world depression of the 1930s was made irreversible by the British bankruptcy of
September 1931, when the Bank of England ceased gold payment. At that time, the vast majority of
international trade was financed by pounds sterling bills of exchange drawn on London. When the
British Pound began to float through a series of competitive devaluations, the lack of a stable
reserve currency – and not the US Hawley-Smoot tariff – strangled world trade, thus making that
depression as severe as it was. British default in turn undermined the US banking system, setting the
stage for the banking panic which ravaged the United States in 1932 and 1933, to the point that not
a single bank in the country was still operating by the time Franklin D. Roosevelt assumed the
presidency in March of 1933. The United States would almost certainly have been lashed by
additional waves of depression had it not been for the banking triage implemented by the Roosevelt
administration during the bank holiday, and for other New Deal measures which succeeded in
mitigating the Depression. Other countries, notably Germany, went into a permanent depression
which was expressed in a series of military campaigns which aimed at the economic looting of the
other countries of Europe. Whatever the ideological fanatics of the discredited Austria and Chicago
schools of economic analysis may claim, there is no automatic business cycle capable of lifting the
modern world out of serious economic disintegration. The depression will end when adequate New
Deal style policies are implemented, and not before, as I show in my new book, the second edition
of Surviving the Cataclysm.
TODAY: BETWEEN 1929 AND 1931
Today, therefore, we are so to speak in the trough between the October 1929 wave (which
corresponds to the derivatives crisis and banking panic of 2008) in the September 1931 wave, which
this time around is highly likely to take the form of a hyperinflationary dollar crisis, or in other
words a hyper stagflation and depression of the world economy radiating out from Wall Street and
the City of London. What then might be the leading characteristics of the next wave of the current
world economic breakdown crisis?
The next wave is likely to involve a worldwide dollar panic. Using ballpark figures, we can say that
there are about $4 to $5 trillion sloshing around the world in the form of hot money, US Treasury
securities, Euro dollars, and various forms of zeno-dollars. Japan has about a trillion, China almost
$2 trillion, and so forth. It is naturally very unwise for a developing country like China to hold so
many dollars rather than using them to purchase needed infrastructure and capital goods, and the
Chinese leaders are now very uncomfortable with their own foolish decision, which was of course
taken under heavy US pressure. But the point is that this $4.5 trillion overhang is by its very nature
exceedingly unstable. Every country that holds large sums of dollars or US treasury bonds is
nervously eyeing every other such country to see if they show signs of bolting for the exit. Up to
now, so far as we know, no large holder of dollars has attempted to reduce its exposure to the
battered greenback by dumping these dollars on the international market. If anyone did so, would
cause a true universal financial panic which would create chaos and mayhem not just in the United
States and Great Britain, but in the vast areas of the rest of the world as well. This is concretely how
hyperinflation could now very well arise: if one or more US creditor nations attempts to abruptly
lighten up on dollars, the value of the US currency could undergo a catastrophic collapse, and that
would spell runaway hyperinflation on the US domestic front.
WORLD DOLLAR PANIC IMMINENT?
We need to recall that the value of a modern currency is not determined inside the country, but
rather on the international foreign exchange markets. This is where the fatal vulnerability of the US
dollar is located. In the ruined form of the Bretton Woods system which has prevailed for almost 40
years since Nixon's colossal historical vandalism of August 15, 1971, the US has emerged as the
only country with a permanent license to finance imports by simply printing more of its own
currency and sending those banknotes overseas. Every other country has to manufacture and export
something that others want to buy in order to earn the necessary foreign exchange to pay for its own
imports. The US license to print has made this country the buyer of last resort and the dumping
ground for the unsold junk of the world, leading in the process to high permanent unemployment
here. There are many signs that this inherently unworkable arrangement has now reached the
breaking point.
INTERNATIONAL CURRENCY RELATIONS, NOT MONEY SUPPLY, ARE THE KEY
Ms. Ellen Brown, who apparently supports the doctrines of the social credit movement of the 1930s,
has recently argued that deflation is now on the agenda, and that hyperinflation can be ruled out.
She bases this analysis on the fact that the private credit markets in this country have largely
collapsed, and on the contention that the M1 and M2 money parameters have either declined or
increased only slightly. But all of this is beside the point. The Federal Reserve and the Treasury
have so far provided almost $13 trillion of new loans to banks, insurance companies, credit card
companies, and other purely financial institutions. This is being done in an effort to bail out the $1.5
quadrillion world derivatives bubble, of which something like two thirds or more, meaning one
quadrillion dollars, can be located inside the dollar zone. The world depression started when this
derivatives bubble went into reverse leverage, meaning that super losses instead of super profits
were generated at the apex of the speculative pyramid, as seen in the case of $3 trillion AIG hedge
fund located in London. The Obama regime is engaged in an hysterical attempt to restart derivatives
production in the form of securitization, i.e. the creation of more and better asset backed securities
derivatives. At the same time, the Obama regime has cynically and deliberately driven the Detroit
automakers into bankruptcy, destroying hundreds of thousands of the few remaining industrial jobs
here in the United States. This means that US industrial production continues in drastic decline. The
mere mention of production reminds us that the assorted Austrian, Chicago, and social credit
schools are predominantly or exclusively concerned with money and banking, and pay little or no
attention to industrial, agricultural, and infrastructural production, meaning of course that they
neglect the creation of those tangible physical use values, capital goods, and related forms of real
wealth upon which human existence depends. With bailouts increasing and all forms of commodity
production declining, we have the classic situation of far too much money chasing too few
goods. Internal pressure towards hyperinflation comes from the fact that the bailout and public debt
lending, on top of the bloated, fictitious, and exponentially growing mass of kited derivatives, are
all charges which must be added to the prices of commodity production. Add this to the more
important factor of looming dollar panic in the international exchanges, and the preponderance of
the evidence points towards hyperinflation. Helicopter Ben Bernanke got his name from his famous
recipe of throwing bales of dollars out of helicopters onto the lawns of bankers to stimulate the
economy out of a depression, and this reminds us that the profile of the Anglo-American financial
leadership from Gordon Brown, Alistair Darling, and Mervyn King to Summers, Geithner, and
Bernanke is decidedly hyperinflationary. Ms. Brown's belief that hyperinflation is impossible is
therefore mistaken.
The German 1923 hyperinflation was generated internationally, not within Germany, as a campaign
of economic warfare by Britain and France against theior defeated rival. Germany had signed the
Rapallo agreements with Soviet Russia, creating an economic combination which was more than a
match for the Anglo-French. To abort the potential of Rapallo by creating chaos in the German
economy, the Anglo-French systematically destroyed the value of the German Reichsmark on the
international exchanges, taking advantage of the Versailles reparations system and the French
occupation of the industrialized Ruhr area. The mark went down every day when the London
exchange rate was announced. Today, it is the enormous international dollar overhang which
threatens to annihilate the US greenback.
The one way deflation might actually come about is if someone like the self-professed Austrian
school ideologue Ron Paul were to take power. Ron Paul’s “libertarian” alternative to Obama’s
continued bailouts of Wall Street is evidently an immediate deflationary crash, which he asserts will
be followed by an automatic recovery. Ron Paul is a modern representative of the so-called
liquidationist school to which 1920s Treasury Secretary Andrew Mellon belonged. Mellon
demanded the liquidation of stocks, bonds, real estate, and labor. German Chancellor Heinrich
Brüning, another liquidationist, savagely cut German unemployment benefits (Ron Paul’s “nanny
state”) at the height of the Depression, helping to bring on the debacle of January
1933. Liquidationists tend to be people who have money and who believe they will continue to have
money even after an all-out crash, when they will be able to buy up distressed assets and desperate
unemployed workers for rock-bottom prices and cash in. But liquidationism obviously cannot be a
solution to depression of the entire society. The recent meetings of the leaders of the expanded G-8
countries in L’Aquila, Italy were marked by a growing awareness that the US dollar, because of the
criminally irresponsible policies of the Wall Street financiers who have dominated the Bush and
Obama administrations, can no longer play the role of the single world reserve currency. Russian
President Medvedev showed off a sort of future world coin to try to prod the Obama regime in the
direction of serious world monetary reform, which is of course the urgent task before everyone.
Naturally, finance oligarchs like Summers, Geithner, and Bernanke want to continue to play the role
of world currency dictators, and not be forced to negotiate the end of Anglo-American hegemonism.
The world needs to go towards a new pro-growth world monetary system in which the euro, the
yen, the dollar, the ruble, the Chinese currency, a possible Latin American monetary unit, and a
possible Arab monetary unit would all be included. It will be important to make the transition
toward such a new system as orderly as possible, since a catastrophic collapse of the dollar in the
short term would be to no one’s advantage, and would rather represent a sure path to universal ruin.
World economic growth rates under the 1944 to 1971 Bretton Woods system were the highest in
recorded history before or since. This was accomplished through statism and dirigism in the form of
narrow bands of isolation among the currencies, combined with gold settlements of surpluses and
deficits among the nations, which provided an indispensable reality principle to restrain the
hyperinflationary tendencies of the Anglo-Americans. The new world monetary system should
include the abolition of the International Monetary Fund and the World Bank in their current forms,
since these institutions have strangled the economic progress of the developing sector. Rather, the
goal of the new monetary system should be to restart the export of high technology capital goods of
the most modern type from Europe, Japan, and the United States towards the impoverished
countries of Africa, South Asia, and certain parts of Latin America.
THE FEDERAL GOVERNMENT SHOULD STOP BORROWING AND START LENDING
Here in the United States, we need to wipe out the derivatives bubble with the help of a 1% Tobin
tax or securities transfer tax, on all speculative financial transactions, including futures, options,
stocks, bonds, commodities, foreign exchange, and so forth. A California Tobin tax would solve the
state budget crisis. The top 16 Wall Street banks are zombie institutions that need to be seized and
liquidated under Chapter 7 bankruptcy at once, with all of their derivatives going into the shredder.
Foreclosures on homes, farms, and businesses should be banned outright for five years or for the
duration of the depression, which ever lasts longer. To provide a credit supply, the Federal Reserve
should be seized and nationalized, and used as a vehicle to issue 0% Federal credit for productive
activities only, not for speculation. To revive credit demand, state and local governments could then
take out 0% Federal loans for such long overdue projects as the construction of 1,000 hospitals, the
building of 50,000 miles of modern maglev rail systems, and 100 fourth-generation, high
temperature, pebble bed nuclear reactors, plus the rebuilding of water systems and the interstate
highway network. Idled auto plants should be reconverted for these purposes. Science drivers in the
fields of space exploration and colonization, high energy physics, and biomedical research should
also be fully funded in this way to provide technological modernization. The social safety net needs
to be expanded and developed, with larger Social Security pensions for a generation whose 401(k)s
and IRAs have been largely destroyed, along with increased Medicare and Medicaid benefits for
those whose insurance companies are insolvent, like AIG and The Hartford, which have been
devastated by derivatives speculation. These are quite simply the requirements for the maintenance
of human civilization in this part of the world. Until measures like these are carried out, the United
States and the world will continue to sink deeper into the bottomless pit of economic depression.