THE INTERNATIONAL FORECASTER SATURDAY, SEPTEMBER 10, 2011 09/10/11 (3) IF E-MAIL ADDRESSES For subscription and renewal;

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US MARKETS Many people believe the Jackson Hole was a non-event, a failure and it was. QE 3 was not announced, as we predicted. We believe that was being saved for midSeptember when the $300 billion rollover in Treasury securities is completed. Mr. Bernanke has failed in a number of respects, the most glaring being zero interest rates for 2-years and no housing recovery. Even purchasing $1.3 trillion in toxic mortgages has only helped the banks. We still do not know what the Fed paid and what these bonds are worth. No matter what happens the Fed has to again purchase about $900 billion more Treasuries this new upcoming fiscal year. There is no way to avoid that and if they have to buy Agencies and more toxic bonds the figures will be higher. Auction failures cannot be tolerated. This will, of course, increase inflation in 2013 and 2014. Sales to consumers and profits will fall as a result. Not so fast, the Fed still has more monetary ammunition most people havent thought about and it lying on its books. It is the funds that belong to member banks, some $2 trillion that banks have been refusing to put to work. We mentioned the beginning of the movement of these funds from the Fed to the banks just recently. Will this persist? We do not know, but we think it will. It is a natural answer to the funding problem, they perhaps had been deliberately held in abeyance. We believe this could in part solve the liquidity problem over the next year or more. The Fed has sent the word out to the banks. It is time to employ our secret weapon. As a result in July and August we saw what is tantamount to monetary stimulus, and do not forget this is monetization, money that has not as yet flowed into the system. That means its usage will be inflationary. Heretofore, these funds were deliberately withheld from the system to be used at the perfect time. There were plenty of borrowers, but the banks did not lend, because they were told to wait for the right moment. The unleashing of these funds leveraged into the fractional banking system will cause damage and inflation, but they will provide temporary assistance to a failing economy. The Fed also needed some relief as their balance sheet grew close to 25%. The combination of Fed spending for treasuries, bank lending and perhaps some government spending, should reinvigorate the economy temporarily over the next year. Unemployment should decline slightly and consumption

and personal debt should grow. We think Mr. Bernankes plan will fall far short, because like in the 1930s too much structural damage has taken place. Demand for goods and services will grow, but not as much as anticipated and as long as desired. This unfortunately leads to disruption within the system for no other reason than the previous systemic damage visited upon the economy. We are about to see a respite but not a permanent solution. America is headed for 2nd or 3rd world status and the Fed is trying to get us there as soon as possible. If you really want to understand how desperate the elitists are you have to take notice of their control of the US media. Every time they can a big deal is made out of every happening, such as the recent tropical storm, Irene, or the BP disaster, or anything to shift attention away from the dreadful state of the economy, unemployment, CPI or anything financially negative. In NYC, Irene, gave Mayor Bloomberg the excuse to make NYC look like a nuclear attack was underway. He ordered the evacuation of NYC, closes off transportation when he knows few New Yorkers have cars. This is how desperate the elitists are. Any distraction is used to take peoples eyes off the real problem. The Bloomberg theatrics were beyond the stage. He threatened to jail anyone who did not heed his dictates. What a meathead. He should have stayed in Medford, MA, where my mother lived near his family in the Lawrence Estates. This shows you how far the elitists will go and how ridiculous they appear, just to use their power. At the end of the farce, the coast had rain and high winds. The interior suffered more. Irene was essentially a phony scare on a par with their phony financial and economic remedies. As the corporatist fascist model comes more into play and becomes more obvious Americans are going to take orders from a more progressively authoritarian government that will eventually become dictatorial. These bubbleheads will overact all the way, because their power base is rooted in Wall Street and banking. They use the same concept with these events as they do with the idiotic terrorist threat. The people in political authority in America are control freaks. They are all dummies and they know it, and theyll be the first ones thrown by the elitist to the wolves. They are a ridiculous tragedy. The elitists do not care who gets elected the next president. They own them all except Dr. Ron Paul. We are told that to win the presidency one needs $1 billion. This is incredible and it proves why we need a change in campaign laws to harness the power of all those behind the scenes that buy our elected members. No member of Congress votes the way they want too. As soon as elected they are raising funds for reelection and in that process sell their souls. One of the interesting factoids we have come across is the accounting for the US dollars loss of purchasing power due to inflation over the period of the last 2 years; half of the men aged 30 to 50 years saw wages fall 27%. Today only 63.5% of men actually have a job of any kind. This is the second lowest figure since 1948. The members of that era now shortly are going to be asked to have their retirement cut, which they paid for, to supply the military industrial complex with more money for more wars. As it turns out the Illuminists and their purchased politicians have sold Americans out for the past 100 years. Mr. Bernanke at the Fed has indicated that the culprit in this financial mess is none other than the US government. He is right in part, but the Fed has caused 90% of these problems. The Fed should have long ago been reabsorbed into the Treasury, especially after observing its performance over the past few years. The lying about what they had been doing in lending something close to $20 trillion and keeping it a secret. Not to be outdone, both the US dollar and the Euro are in serious trouble and both have to find new lower levels. Versus gold and silver, they are both off annually more than 20% versus gold and silver. We expect those performances over time will worsen. In the

case of the euro we have to see what is accomplished with Germany and the loans to failing countries. No matter what the outcome both the Fed and the ECB will continue to create money and credit one way or another and in that process achieve little except a temporary solution and substantially more inflation. In Europe, interest rates are 1.5%; in the US they are zero. What does one do for an encore? Very simply, both the dollar and the euro are in a box and cannot get out. If its not QE 3 and stimulus 3 at least for the time being it is the banks lending money that was lent to them two years ago by the Fed. All of the Feds and ECB policies do not work. We know that already. Those who believe that the Fed and the EB dont know what they are doing are wrong. Both central banks know exactly what they are doing. That is creating a framework for the financial and economic destruction of economies of the US, UK and Europe in order to bring about a New World Order. In order to not allow the system to fail can never heal itself. Insolvent banks were legally allowed to carry two sets of books with the approval of the US government, the Bank for International Settlements, the BIS, and the accounting rules group FASB. What is very important to realize here is that some of these banks that are insolvent own the Fed. As a result they tell the Fed how much money and credit they need, and as a result they flow to the banks in unlimited amounts. This has to end. Banks are holding assets that have little or no value. They hold 3.5 million foreclosed homes in inventory and over the next five years that number will be 8 to 10 million homes worth 20% to 30% less than they are worth today. Yes, the FDIC would cease to insure and government will do what it did in the 1930s, allow you to withdraw only 5% of your balance at a time. Your deposits would essentially be lost perhaps temporarily or maybe permanently. Now you can better realize how really dire the situation is. Supposedly everyone dislikes the debt extension bill and this is the reason Congress went along with the concept of a Super Congress. They do not want to be responsible for its passage. The debt limit will go to $16.7 trillion and there are to be almost $1 trillion in budget cuts. The second stage of cuts would be $1.4 trillion. The cuts over 10 years are only $240 billion a year. These cuts are a drop in the bucket compared to a $1.7 billion annual budget deficit. It will be interesting to see if the second stage includes tax increases. Both parties are failing to understand the country is bankrupt. These small changes are not going to change anything. The endless debate will eventually lead to default and the method of doing so. For two years we have witnessed a fall in purchasing due to the unofficial inflation of 11.2%, and as a result of QE and stimulus 1. We projected 14% by the end of the year last November. Of course, Americans will be interested to see what the Super Congress decides by November. Watchful observes know the debt extension debate could have been solved in 15 minutes. The real goal was to gut Social Security and Medicare and to set up the 2011 Enabling Act patterned on the 1933 Enabling Act in Germany that made Adolph Hitler dictator. As unemployment unofficially stands at 22.6% American corporate profits account for a larger share of GDP than at any time in the past 60 years. Over the past three years of financial and economic crisis personal incomes fell $270 billion. Record corporate profits have generally happened due to massive layoffs. Employees make up about 70% of costs, so they are the first thing cut. As a result the profits account for the largest share of GDP since 1950, or 12.5%. Wages and salaries are the smallest since 1955, or 55%. Unfortunately, Americans do not read publications such as the International Forecaster, so they do not understand what has been done to them. No matter how you look at it quantitative easing is a bailout of the financial sector. That even applies to the Feds purchase of Treasury, Agency bonds and other toxic waste, because it relieves the financial sector of the responsibility of purchasing

these bonds. Those funds are then freed up for speculation in markets. This approach to financial crisis assures the survival and profit of the vested interests. One of the striking things about the Fed is that it pays no heed to what politicians, foreign countries and other detractors say. Their only real mission is to keep the financial sectors in NYC, London and Europe solvent and operating. There are no other considerations, except printing trillions of dollars to keep the stock market up. During QE and Stimulus 2 MZM went ballistic sending the Dow close to 11,800. As you can see the Dow and major financial players, including the government, are helped by little falls through the cracks to the taxpayers. Higher inflation ensued higher gold, silver and commodity prices, as the dollar again came under downward pressure. That effect is still in process and it will extend through next year, because just through the end of the year real inflation will be 14% and official inflation 5.5%. These are about the same numbers we saw three years ago just prior to the credit crisis. During the intervening years 2-1/2 interest rates from the Fed to the banks remained at zero and we are told by the Fed that they will remain there for 2 more years. As a result of this myopia approach wages have hardly grown, unemployment has continued to rise and consumer purchasing power has fallen about 10% year-on-year. Overall second quarter growth was 1% and first half GDP growth was 0.7%. A year earlier we predicted 1% to 1-1/2%, so we were close. 98% of forecasters were way off target, but that often happens to lemmings. None in Wall Street, banking or government has a care about the American worker, who is earning much less than 11 years ago, or retirees who have to find a way to exist on 1% or 2% yields on their meager savings. Those rates are costing them almost $400 billion a year in lost income, and now Congress is in the process of cutting Social Security and Medicare after they looted those trusts. Speculators, banks and hedge funds get richer and the old and poor starve, or cut back on prescriptions, which help keep them alive, so we can fund more off balance sheet wars for profit. The economy cannot stay profitable and the financials cant stay profitable and write off their lead debt with more than $2 billion in assistance annually. Nothing has been fundamentally done to solve the underlying economic, financial and economic problems. The rich get richer and the crime syndicate that runs America screws the public. These are the same people who rig every statistic released by government and even some issued privately. Those who own the Fed know long ahead of time what statistical releases will be and we believe often they craft the results. A blatant example is the July release of a 0.8% increase in consumer spending. A month or so from now the figure will probably be revised lower, as usual. It is a game they play to goose the stock market and make illegitimate profits. They never go to jail for what they do. You cannot prosecute a wink and a nod. Statistics are crafted for the market and result in large gains in the market and a hive of profit for traders. The stock market is an integral part of financial and economic policy. For the insiders only the stock and bond markets mean anything. This must stay up or the public loses confidence and once that happens the economy comes unglued. The binding of statistics no matter how observed is an important part of manipulation. These people can justify anything as sociopaths. 86% of those polled said the economy is in poor shape, yet consumer spending is up 0.8%. Give us a break. Even the Conference Board says consumer confidence fell from 59.2 in July to 44.5 in August and government expects us to believe consumption rose 0.8%. Many layoffs lie ahead as corporations continue to cut back. Their earning gains mainly come from layoffs and productivity gains are terrible. The future is again clouded and full of pitfalls.

Inventories at U.S. wholesalers rose more in July than a month earlier, boosted by automobiles and computer equipment, as sales stagnated. The 0.8 percent increase in inventories followed a 0.6 percent rise in June, Commerce Department figures showed today in Washington. Economists projected a 0.7 percent gain, according to the median forecast in a Bloomberg News survey. Sales were little changed in July. Weaker demand gives distributors less reason to build up stockpiles, a sign production may cool and contribute less to the recovery. At the current sales pace, wholesalers had enough goods on hand to last 1.17 months, the longest since October 2010. Bank of America Corp officials have discussed slashing roughly 40,000 jobs during the first wave of a restructuring, the Wall Street Journal said, citing people familiar with the plans. The number of job cuts are not final and could change. The restructuring aims to reduce the bank's workforce of 280,000 over a period of years, the Journal said. Plaintiffs in a case accusing 11 firms, including KKR & Co. and Blackstone Group LP (BX), of conspiring to rig the market for leveraged buyout deals can expand their investigation, a federal judge ruled. The plaintiffs, including a Detroit police and fire pension fund, can seek information on 10 additional deals, U.S. District Judge Edward F. Harrington said in a ruling Sept. 7. He didnt identify the transactions, which are described in a fifth amended complaint filed under seal. The firms argued that adding the deals would be unduly burdensome and prejudicial, according to court papers. The lawsuit, initially filed in 2007, claims the firms conspired to drive down prices in the largest leveraged buyout deals in violation of federal antitrust laws. The case previously was limited to 17 transactions. Harrington gave the plaintiffs until April 17 to seek the information. Among the deals in question is Neiman Marcus Group Inc.s $5.1 billion buyout by Warburg Pincus LLC and TPG Capital Inc., SunGard Data Systems Inc.s $11.3 billion takeover by seven private-equity firms and Aramark Corp.s roughly $8.3 billion purchase in January 2007. Three plaintiffs are also shareholders of Freescale Semiconductor Inc., which was taken private by a group including Blackstone and Carlyle Group. TPG and Carlyle are also defendants in the suit. Banks including JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC) may pay more to resolve claims over their alleged roles in the collapse of a $2.3 trillion mortgage- backed securities market if sophisticated investors are allowed to sue as a group along with less savvy ones. Class-action status allows investors to pool financial and legal resources, giving them greater leverage to win larger settlements or verdicts. The banks, however, have a court ruling on their side that may help fend off such blockbuster cases. It says class status is barred because some investors are too sophisticated -- in fact, because some of them are other banks, including JPMorgan. It is possible to be both an alleged perpetrator and victim at the same time, said Jacob S. Frenkel, a former U.S. Securities and Exchange Commission lawyer now in private practice in Potomac, Maryland. Its unprecedented that you have the most sophisticated institutions as victims, to be in a position where their losses are so great that they have sued.

The ruling by U.S. District Judge Harold Baer Jr. in Manhattan, favoring defendants Royal Bank of Scotland Group Plc (RBS) and Ally Financial Inc., held that investors may not sue as a class in part because some of them are being sued over the same claims. Last month, that ruling was countered by two judges in Baers courthouse, both of whom ruled that investors in home- loan backed securities may sue as a class. A U.S. judge who is reviewing the Bernard Madoff trustees $59 billion antiracketeering lawsuit against Italys UniCredit SpA (UCG) and Austrian Sonja Kohn said it is now settled law that RICO cannot be applied extraterritorially. U.S. District Judge Jed Rakoff, explaining an earlier decision to take over consideration of the issue from a bankruptcy judge, said he would determine the precise contours of the Racketeer Influenced and Corrupt Organizations Act and how it was used by the liquidator of Madoffs firm, Irving Picard. Rakoff will take into account recent rulings by higher courts that RICO doesnt apply to actions that mainly involve foreign actors and foreign acts, he said in a court filing yesterday in Manhattan. The court agrees with UniCredit that this relatively new doctrine will require significant interpretation of RICO, Rakoff said. Picard named UniCredit and its Bank Austria unit in a December complaint against Bank Medici AG founder Kohn and dozens of other Austrian and Italian parties. He alleged they were part of an international illegal scheme masterminded by Kohn to feed money to Madoffs Ponzi scheme. The trustee demanded $19.6 billion -- his estimate at the time of all principal lost by Madoff investors -- while using RICO to seek triple the amount. Hollow Claims UniCredit in July asked Rakoff to dismiss Picards hollow racketeering claims, saying 49 of the 57 parties accused of racketeering were foreign, and Picards suit focused on actions abroad. Bank Austria said it was under a cloud because of Picards mammoth claims, almost equal to one- sixth of Austrias gross domestic product. Picard has denied his suit is extraterritorial, saying the illegal scheme was hatched in New York and injured the New York-based Madoff estate. A proposed new complaint against UniCredit would add 23 defendants and newly discovered information regarding the wrongdoing, he said last month. Demand for U.S. home loans fell for a third straight week last week although mortgage rates fell to or near record lows, an industry group said on Wednesday. The Mortgage Bankers Association's seasonally adjusted mortgage applications index, which includes both refinancing and home purchase demand, dropped 4.9 percent in the week ending September 2. The MBA's seasonally adjusted refinancing application index fell 6.3 percent while its gauge of loan requests for home purchases climbed 0.2 percent. Fixed 30-year mortgage rates averaged 4.23 percent, down from 4.32 percent the prior week and the second lowest rate since the group began its survey nearly 22 years ago. Fifteen-year loan rates averaged 3.41 percent, down from 3.49 percent a week ago to a new survey low. Claims for U.S. unemployment benefits rose last week, a sign the labor market is struggling to gain traction more than two years after the recession ended.

Jobless claims rose by 2,000 to 414,000 in the week ended Sept. 3, Labor Department figures showed today in Washington. Economists surveyed by Bloomberg News projected a drop in claims to 405,000, according to the median forecast. The number of people on unemployment benefit rolls and those receiving extended payments fell. Companies are stepping up the pace of firings, raising the risk that consumer spending will slow further. Job growth stagnated last month and the unemployment rate held unchanged at 9.1 percent, the Labor Department reported last week. The Labor Department said there was no national effect from Hurricane Irene. In the past decade, the number of seniors in the labor force has grown nearly 60 percent, according to the Bureau of Labor Statistics. By 2018, the number of workers 65 or older is projected to climb to 11 million, from 6.5 million today. So employers face a dual challenge. They have to keep older workers productive and then, when those workers do leave, find qualified people to replace them. In 22 industries among them engineering, agriculture, real estate and health care more than three in 10 workers are 50 or older, according to a 2007 study from the Sloan Center on Aging & Work at Boston College. Companies are not very long-term-oriented, he added. They dont spend much time worrying about what might be coming down the pipe in the future. Its been mitigated a little because of the economy, but I think its a huge problem for us, Redlo said. In Texas, home to Dow and the Lockheed unit, public schools have de-emphasized vocational education, said John Ray, dean of information and community resources at Brazosport College. Today, you dont have students with experience in working with their hands, Ray said. The U.S. trade deficit narrowed more than forecast in July as exports climbed to a record, offering a bright spot for an economy at risk of a bigger slowdown. The gap shrank 13.1 percent, the most since February 2009, to $44.8 billion from a revised $51.6 billion shortfall in June, Commerce Department figures showed today in Washington. Exports rose as companies shipped more capital goods and automobiles overseas. Solyndra LLC, the bankrupt solar- panel maker that was backed by the Obama administration, is being raided by the Federal Bureau of Investigation today, an agency spokeswoman said The company, whose $535 million federal loan guarantee was criticized by Republicans, filed bankruptcy on Sept. 6, six days after shutting down its factory and firing 1,100 people. According to White House visitor logs, between March 12, 2009, and April 14, 2011, Solyndra officials and investors made no fewer than 20 trips to the West Wing. In the week before the administration awarded Solyndra with the first-ever alternative energy loan guarantee on March 20, four separate visits were logged. Republicans stupidly cling to trade agreements as a means to boost the US economy. This is a staple crony capitalism policy. How did GATT work out? What about MFN for China? Anyone want to defend how NAFTA helped the US economy?

All trade agreements of recent vintage have induced US large corporations to boost foreign production and cut US jobs. US corporations and solons main rationalization for the trade pacts has been to proclaim that the trade pacts will bring lower priced goods to the US. This only benefits those that have jobsFair trade pacts, quid pro quo, should be the standard. Rate on 30-year fixed mortgage hits 4.12 pct., 15-year falls to 3.33 pct.; both records Fixed mortgage rates fell this week to the lowest levels in six decades. But few Americans can take advantage of the rates to refinance or buy a homeRecord-low mortgage rates have done little to energize the depressed housing market Yet sales of new homes are on pace to finish the year as the lowest on records dating back a halfcentury. The pace of re-sales is shaping up to be the worst in 14 years. Many Americans are in no position to buy. High unemployment, scant wage gains and large debt loads have kept them away. Others can't qualify for the lowest rates. Banks are insisting on higher credit scores and 20 percent down payments for first-time buyers. Many repeat buyers have too little equity invested in their homes to meet loan requirements. Bernanke reiterated his Jackson Hole speech/August Fed communiqu yesterday. The Fed has a range of tools to employ and will use them as appropriate; substantial fiscal tightening would hurt the economy. As we expected, stocks sank on [advance copy of] Bernankes speech because he didnt suggests or announce a new Fed stimulus scheme. He reiterated the few lame tools that remain for the Fed. Ben again said, and hes been saying this for years, he expects inflation to moderate in coming months. Initial Jobless Claims unexpectedly increased to 414,000 (405k expected); and as usual the previous week was revised higher to 412,000. Continuing claims (3.717m) were 11k worse than expected; the previous weeks claims were revised higher by 12k, to 3.747m. The US trade picture brightened in July because exports were $6.2B better more than June and imports declined $0.5B from June. This will induce analysts to boost Q3 GDP forecasts. At a Bloomberg conference on global inflation yesterday, Ex-St. Louis Fed President William Poole went off on Bernanke, slamming him for paying too much attention to equity prices. I would describe the decision on August 9 as being simply unprincipledAll the academic research, including research within the Federal Reserve makes policy dependent on the state of the economy, not the state of the calendar. [In other words, Bernanke and his ilk are playing politics.] BN: William Poole, former president of the Federal Reserve Bank of St. Louis, said the Fed wont be able to offset the damage to the economy from fiscal tightening. I think it is very, very unfortunate the Fed is going down this path,Poole said Bernanke should give a speech devoted to the problems of fiscal policy and make it clear that the Fed alone cant fix all that ails the economy. SHORT NOTES Prosecutors in New York are pressing ahead with their inquiry into the way Goldman Sachs Group Inc. marketed certain mortgage-linked instruments before the

financial crisis, issuing subpoenas to Morgan Stanley and other investors in the deals, people familiar with the matter said. A measure of job prospects in the U.S. fell in August for a fourth time in five months, reflecting declines in consumer confidence and job openings that indicate payrolls may fail to pick up in the final months of the year. The Conference Boards Employment Trends Index decreased 0.3 percent to 100.8. The New Orders Index increased by 1.1 percentage points to 52.8 percent. The Employment Index decreased 0.9 percentage point to 51.6 percent, indicating growth in employment for the 12th consecutive month, but at a slower rate than in July. The Prices Index increased 7.6 percentage points to 64.2 percent Business activity declined 0.5. IMF has agreed to cut European bank capital needs estimate. "We have discussed this with the IMF in detail and the IMF has agreed that this initial figure will be revised downwards and the revision will be quite substantial," a euro zone official participating in the talks said. "There is a need for additional capital in the European banking system but the magnitude of the required recapitalisation is nowhere near the initial number of the IMF," the official said. In a letter to the president Tuesday, Speaker John Boehner (R-Ohio) and Majority Leader Eric Cantor (RVa.) laid out several areas of common ground, including passing three long-stalled trade agreements, reducing regulation and funding certain infrastructure projects. GOLD, SILVER, PLATINUM AND PALADIUM WEDNESDAY saw spot gold fall $55.70 to $1,814.20; and December fell $58.90 to $1,14.40. Spot silver fell $0.23 to $41.57 and December fell $0.25 to $41.61. Both metals traded higher in the access market. Both markets were attacked by the PPT overnight and at 7:00 a.m. EDT, a half hour before the opening, gold was off $37.40 and silver $0.86. Each case of market manipulation gets worse in the sense that it becomes more and more blatant. We do not believe that some trader dumped 4,000 lots of gold on the Comex. There is no verification and it is typical cover for the gold suppression cartel. Gold hit $1,792 a 1-1/2 day drop of $136.00. In two days the gold price is already massively oversold. On 8 radio programs we were on today, we said buy gold and silver with both hands, particularly gold. The correction was over, again. All the spec longs, small and medium, were wiped out again by the manipulation. That means again there is no overhead resistance. Next stop soon $2,000 or more as silver goes to test and break $50.00 again. Gold open interest rose 8,416 contracts to 523,294. The gold and silver shares were standouts today. The HUI rose 2.03 to 623.81, and the XAU rose 1.42 to 224.49. What caused great interest was that the gold and silver shares rose as the bullion prices fell. That is a very good omen because the gold and silver share traders are probably the best in the world and Im sure institutions were active as well. Silver open interest fell 184 contracts to 113,449. We predicted the talk regarding QE 3 would begin in early September and so it has. Federal Reserve Bank of Chicago president Charles Evans said the central bank should move aggressively to reduce unemployment, even at the cost of temporarily

pushing inflation higher. The ECB said the weekly statement of condition reported no change in gold and gold receivables. If you havent heard we now have what is called Operation Twist, which is an attempt by the Fed to lower medium/long term interest rates by pegging the short term rate to zero and then going out and buying longer-date Treasuries. It probably is meant to be an extension of QE 2, which wont expand the Feds balance sheet. These tactics could be announced at the Fed meeting on 9/21 and 9/22. The Swiss have decided to devalue their currency and we believe it was a very bad move. That will force franc holders to sell the currency and buy gold and silver related assets. As Von Mises said a global system of fiat currencies will eventually end up in a devaluation race and that is exactly what we have. The Swiss have been in trouble for years, especially the big banks. They are no better off than the US, UK or other European banks. The Dow rose 274 to 11,414, S&P rose 320 and Nasdaq 450 Dow points. The 10-year T-note yielded 2.04%. The yen rose .0045 to $.7724; the euro rose .0102 to $1.4082, the pound rose .0031 to $1.5958, the Swiss franc rose .0040 to $.8551 and the Canadian dollar rose .0041 to $1.0120. The USDX fell .46 to 75.49. Oil rose $3.22 to $89.25, gas rose $0.08 to $2.90 and natural gas fell $0.01 to $4.25. Copper rose $0.08 to $4.13, platinum fell $36.00 to $1,822.20 and palladium rose $4.25 to $753.80. The CRB rose 4.59 to 339.81. Early Thursday gold started up $20.00 and silver $17.00 at 7:00 a.m. EDT gold was up $24.50 and silver up $0.53, and both were rising. Spot gold rose $40.20 to $1,854.40, as December rose $51.60 to $1,969.20. Spot silver rose $0.90 to $44.47, as December rose $0.73 to $42.36. The gold and silver suppression cartel ran out of money and magic today. Our call again at $1,800 gold to buy with both hands has proved to be another winner. When you are hot you are hot. The HUI rose 11.14 to 634.95 and the XAU rose 2.54 to 227.03. The cartel is losing control of the gold and silver markets. Since August 1st through yesterday, Wednesday, gold rose $310, or 19.3%. This current two-day move back has risen $71.00 and only has $57.00 to go to hit the recent interday high of $1,928.00. Gold open interest fell 6,162 to 517,132, making the drop a non-event. Silver OI fell 1,312 to 112,137 and the chart looks delicious. Incidentally, the bank stocks look like a dogs breakfast. If you are into the short side of the market short the banks. Consumers increased debt by $12 billion or 5.9% in July. In June it rose $11.3 billion. Most were in auto loans, personal loans and student loans. Credit card debt fell $3.4 billion or 5.2% in July. Libyas central bank sold 29 tons of gold in April and May. South Africas gold output fell 3.5% yoy in July. We are seeing the beginnings of gold and silver share accumulation by mutual funds and other institutions. The amount of gold used in making jewelry in 2010 rose 36% to 685 tons. Bolivia will buy gold from local producers; they produced six metric tons of gold last year, off14% from 2009. This is the benefit of a communist government. The Dow fell 119 to 11,295, S&P fell 108 and Nasdaq fell 119 Dow points. The yen fell .0028 to $.7739; the euro fell .0206 to $1.3876; the pound fell .0008 to $1.5954; the Swiss franc fell .0225 to $.8722 and the Canadian dollar fell .0028 to $1.0094. The USDX rose .78 to 76.24.

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Oil fell $0.42 to $88.92, gas fell $0.03 to $2.87 and natural gas rose $0.03 to $4.28. Copper fell $0.01 to $4.12, platinum rose $36.10 to $1,864.80 and palladium rose $7.75 to $760.45. The CRB rose .09 to 339.90. Early Friday morning saw the first cartel suppression attack at 6:25 a.m. EDT. Gold was off $3.50 and silver $0.27. Gold went to minus $26.80 and silver to minus $1.04. Gold rallied back $13.00 and silver $0.44. Spot gold rose $2.00 to $1,856.40, as December rose $1.10 to $1,858.60. Spot silver rose $0.90 to $44.47, as December fell $0.87 to $42.36. Gold and silver were helped today by the 4% in the German market as Greece gets closer to default and Germany gets closer to anarchy. The euro took gas today as well, as Germany chancellor Merkel is making plans to shore up German banks, in the event Greece fails to comply with the terms of its bailout package and is forced to default. We wonder if Germany blows up this weekend as the G-7 goes forward. Greece is 100 times worse than it was a year ago. Gold open interest fell 2,934 to 514,196, but silver OI rose 1,076 to 113,213. In silver the large commercials increased net shorts by 2,158. They increased net gold shorts by 5,609. The XAU fell 3.89 to 223.14 and the HUI fell 6.92 to 628.087. The Dow fell 302 to 10,993; S&P fell 284 and Nasdaq 366 Dow points. The yen was unchanged, the euro fell .0220 to $1.3659; the pound fell .0086 to $1.5865; the Swiss franc fell .0011 to $.8805 and the Canadian dollar fell .0070 to $1.0019. The USDX rose .91 to 77.16. Oil fell $1.82 to $87.22, gas fell $0.11 to $2.77 and natural gas fell $0.06 to $4.20. Copper fell $0.15 to $4.00, platinum fell $20.10 to $1,834.60 and palladium fell $27.85 to $737.45. The CRB fell 5.66 to 334.24. COMMODITIES The hottest summer since 1955 in parts of the Midwest has eroded corn yields in the U.S., the worlds largest grower and exporter, sending prices to record highs for the harvest season. The U.S. Department of Agriculture on Sept. 12 may cut its crop forecast for a second straight month, to 12.554 billion bushels, down 2.8 percent from an August projection of 12.914 billion, according to the average estimate of 30 analysts surveyed by Bloomberg News. Inventories before next years harvest will be the lowest since 1996, according to the survey. Cash-corn prices in Iowa and central Illinois, the two largest growing states, have risen at least 71 percent in the past year to the highest ever before harvesting began this month, government data show. Crops in parts of the Midwest were damaged by the hottest temperatures in more than 100 years, boosting costs for livestock producers including Tyson Foods Inc. (TSN) and ethanol makers such as Poet LLC. The crop could get smaller, and that will increase risks for prices to move higher, Dan Cekander, the director of grain research for Newedge USA LLC in Chicago, said in a telephone interview yesterday. Supplies will be tight for another year, and that puts a premium on adding acreage next year and producing a big crop to rebuild depleted inventories, said Cekander, who forecast a harvest of 12.521 billion bushels. Crude oil inventories fell 3.96 m/b; distillates rose 709,000 and gasoline rose 199,000 barrels. Natural gas inventories rose 64 bcf.

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CANADA Canada unexpectedly lost jobs for the first time in five months in August, led by goods-producing industries such as construction and natural resources. Employment fell by 5,500 after rising by 7,100 in the previous month, Statistics Canada said today in Ottawa, and the jobless rate rose to 7.3 percent from Julys 7.2 percent, which was the lowest since December 2008. Bloomberg News surveys called for job gains of 21,500 and unemployment to stay at 7.2 percent. Thirty-year government bond yields fell to as low as 2.853 percent, the lowest in Bloomberg records dating to 1990, as the report signaled a stagnating job market following the second quarter, when the economy shrank for the first time since the 2009 recession. Separate reports today showed housing starts declining at the quickest this year and worker output per hour falling at the fastest pace in five years. Im concerned about third-quarter growth in Canada, said Derek Holt, Scotia Capitals vice president of economics in Toronto. There are signs domestic demand is falling to pieces, such as rising inventories, slower business investment and housing, he said. Lets cross our fingers and hope the consumer comes through in this picture. EUROPE Canadian Finance Minister Jim Flaherty said Greece may have to leave the euro if it fails to press ahead with its budget-cutting plans. Its necessary for the Greek government to stay the course. The alternative is probably that they leave the euro, Flaherty told reporters in Marseille, France, where he is attending a meeting of Group of Seven officials. I expect the Greek government would want to continue their fiscal consolidation. Asked if he thought there was any chance Greece would opt to leave the euro, Flaherty said: I dont know. No doubt, its a possibility. Its been written about. Lots of economists have talked about it. Flaherty said hes not advocating Greeces exit from the European common currency. Its actually none of our business, he said. I want a solution to the fiscal challenges to the EU. And were careful about that, I dont suggest to my European colleagues about precise steps they can take. Juergen Stark will resign from the European Central Banks Executive Board, suggesting policy makers are divided over the best way to fight the euro regions worsening debt crisis. Stark, 63 and the central banks chief economist, today informed President Jean-Claude Trichet that, for personal reasons, he will resign from his position, the Frankfurt-based ECB said in a statement. Stark will stay on in his current position until a successor is appointed, which, according to the appointment procedure, will be by the end of this year. Starks resignation, which comes less than two months before Trichets term ends, is a blow to the ECB as it attempts to prevent Europes debt crisis from spreading. The ECB last month stepped up its government bond purchases, a measure Stark has opposed. Former Bundesbank President Axel Weber, another bond-purchase critic, earlier this year pulled out of the running to succeed Trichet.

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There is quite a severe row going on, said Juergen Michels, chief euro-region economist at Citigroup Inc. in London. It seems that it went too far. The euro extended its decline after news of Starks possible resignation was first published. It traded at $1.3727 at 4 p.m. in Frankfurt, down 1.1 percent on the day. German Deputy Finance Minister Joerg Asmussen is a candidate to replace Stark, Frankfurter Allgemeine Zeitung reported, without saying where it got the information. Starks position on the board will be filled by another German, FAZ said. Starks eight-year term was due to end on May 31, 2014. Inflation in Germany, Europes largest economy, slowed less than initially projected in August, as energy costs increased. The inflation rate, calculated using a harmonized European Union method, fell to 2.5 percent from 2.6 percent in July, the Federal Statistics Office in Wiesbaden said today. On Aug. 29, it had estimated the rate at 2.4 percent. From the previous month, prices remained unchanged. Industrial production in Germany surged the most in more than a year in July as late school holidays boosted factory output. Production jumped 4 percent from June, when it dropped 1 percent, the Economy Ministry in Berlin said today. Thats the biggest gain since March 2010. Economists had forecast an increase of 0.5 percent, the median of 37 estimates in a Bloomberg News survey showed. In the year, output rose 10.1 percent when adjusted for working days. The German economy, Europes largest, will expand in the region of 3 percent this year, the Bundesbank reiterated last month after growth slowed to a near standstill in the second quarter. While unemployment fell for a 26th month in August, confidence among consumers, investors and businesses worsened as the regions debt crisis threatened to derail the recovery. German companies have a high backlog of orders that will keep production going, said Andreas Rees, chief German economist at UniCredit MIB in Munich, who forecasts growth of 0.5 percent in the third quarter. I dont see companies canceling orders to a large extent but if financial market uncertainty continues, some firms may postpone investments. Challenges to Germanys participation in the euro rescue funds were rejected by the nations top court today, which said the government must seek some parliamentary approval for any future bailout payments. The Federal Constitutional Court in Karlsruhe threw out suits targeting Germanys share of the 110 billion-euros ($155 billion) in loans for Greece from euroregion governments and the International Monetary Fund as well as a separate 750 billion-euro rescue fund approved last year to halt the spread of Greeces debt crisis. The ruling will aid German Chancellor Angela Merkels efforts to gain support for participation in a new round of European Financial Stability Facility programs. She pledged last week to consult lawmakers as her Cabinet agreed on a reworked plan that will raise Germanys share of EFSF loan guarantees to 211 billion euros from 123 billion euros. This gives a green light for continued bailouts which is the only track available to euro-zone leaders right now, Fredrik Erixon, head of the European Centre for International Political Economy in Brussels, said in a telephone interview. The court said the ruling shouldnt be seen as blanket approval for rescue participation and the government must seek approval from the parliaments budget committee for guarantees it assumes under the EFSF.

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Elementary Budgetary Decisions Parliamentary decisions about taxing and spending are a central element of democratic self government under the constitution, Andreas Vosskuhl, president of the court said in the ruling. As representatives of the people, the elected members of parliament thus also need to remain in control over elementary budgetary decisions. Politicians applauded the ruling, with Deputy Foreign Minister Werner Hoyer saying it was a good day for the stability of the euro. The euro rose after the ruling before erasing gains. It was up 0.4 percent at $1.4050 as of 11:46 a.m. in Berlin. The government already adheres to the requirements to seek approval from the budget committee for new payouts under the rescue fund, German Deputy Finance Minister Steffen Kampeter said in the courtroom after the ruling. The government got full backing from the court. Plaintiffs in the suit included law professor Karl Schachtschneider, economists Joachim Starbatty, Wilhelm Hankel and Wilhelm Noelling, former Thyssen AG Chief Executive Officer Dieter Spethmann and Peter Gauweiler, a lawmaker from the Bavarian sister party of Merkels Christian Democrats. Historic Responsibility The court bears the historic responsibility for the destruction of the euro -- and even more so: for the destruction of the EU, said Schachtschneider. The ruling is a blow especially for the poor in Germany as the court declines to protect the value of our money, which will hit the poor most. They argued German participation in the rescue packages undermines the budgetary rights of parliament and violates the right to democratic representation as well as the protection of property. The Swiss central banks decision to cap the appreciation of the nations currency against the euro may fall short of helping eastern European borrowers repay mortgages denominated in francs and get them to spend. The forint and the zloty have climbed 8 percent against the franc since yesterdays announcement, compared with repayment costs that have risen 77 percent in Hungary and 93 percent in Poland since mid-2008, according to Capital Economics. The collapse of Lehman Brothers Holdings Inc. that year ended an economic boom that spurred demand for franc loans to escape higher local interest rates. The pain is still there, Luis Costa, an emerging- markets strategist at Citigroup Inc. in London, said in a telephone interview yesterday. The fact that at least they are trying to cap the Swiss franc appreciation helps of course. At least its not going to get worse. This doesnt resolve the problem. Two-thirds of Hungarian mortgages and 54 percent of Polish loans are based in francs, accounting for 16 percent and 10 percent of gross domestic product, respectively, according to UBS Wealth Management. The franc soared to records against most of its counterparts as investors took refuge in the Alpine countrys currency as the U.S. skirted a recession and the euro regions debt crisis remained unresolved. Credit-default swaps on Greek government debt surged to a record, signaling a 91 percent chance the nation will fail to meet debt commitments, after its economy shrank more than previously reported. Five-year contracts on the countrys sovereign bonds jumped 196 basis points to 3,001 basis points, at 3:45 p.m. in London, according to CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated market.

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Gross domestic product shrank 7.3 percent from a year earlier after declining 8.1 percent on an annual basis in the first quarter, the Hellenic Statistical Authority said. Greeces financial situation is on a knifes edge, German Finance Minister Wolfgang Schaeuble told lawmakers last night, according to parliaments HIB bulletin. Spanish industrial production fell the most in more than a year in July as the economy struggled to emerge from a three-year slump fueled by the regions debt crisis. Output at factories, refineries and mines dropped 2.8 percent from a year earlier, adjusting for the number of working days, the National Statistics Institute in Madrid said today in an e-mailed statement. Thats the biggest decline since January 2010 and more than the revised 1.9 percent drop in June. Non- seasonally adjusted output fell 5.7 percent in July from a year earlier. Spains 1.3 percent growth target has become a bit more difficult to meet than a quarter ago, Finance Minister Elena Salgado said on Aug. 19. The nations economic recovery slowed in the second quarter as exports contracted and spending shrank amid the deepest austerity measures in three decades and a 21 percent unemployment rate. ENGLAND U.K. output prices increased the least in a year in August as a drop in energy costs eased pressure on manufacturers margins. Prices charged at factory gates rose 0.1 percent from July, when they gained a revised 0.3 percent, the Office for National Statistics said today in London. The increase is the smallest since September 2010 and matched the median forecast of 18 economists in a Bloomberg News survey. Input prices dropped 1.9 percent on the month, the most since April 2009. A drop in raw material costs is easing pressure on manufacturers as a cooling global recovery limits their ability to charge customers more. The Bank of England maintained emergency stimulus for the economy yesterday, though inflation at more than double its 2 percent target has for now kept policy makers from buying more bonds in so-called quantitative easing to bolster growth. U.K. house prices fell for the first time in four months in August as Britons grew more pessimistic about the economy, Halifax said. Prices dropped 1.2 percent from July, the mortgage unit of Lloyds Banking Group Plc (LLOY) said in a statement in London today. From a year earlier, prices decreased 3.9 percent to an average 161,743 pounds ($258,500). U.K. consumer sentiment fell in August as government budget cuts and accelerating inflation squeezed household finances. The Bank of England will hold its benchmark interest rate at a record low tomorrow as the global recovery slows, Europes debt crisis intensifies and Britain presses ahead with the deepest fiscal squeeze since World War II, economists forecast. Low interest rates are likely to continue to support the market whilst increased uncertainty about the economic outlook and pressures on householders finances constrain demand, Halifax economist Martin Ellis said in the statement. Overall, we expect broad stability in both prices and activity over the coming months. Augusts house price decline was the first since April, when values dropped 1.4 percent, Halifax said. In the three months through August, they rose 1 percent from the previous quarter and were 2.6 percent lower than a year earlier.

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JAPAN Japans machinery orders fell the most in 10 months in July, as the yens gain to a postwar record eroded company profits and discouraged investment. Factory orders dropped 8.2 percent in July from June, when they increased 7.7 percent, the Cabinet Office said today in Tokyo. Orders, an indicator of capital spending in three to six months, were projected to decline by 4.2 percent, according to the median forecast of 27 economists surveyed by Bloomberg News. HEALTH Herbalist Wendy Wilson FOOD TOXICITY The older I get and the more I hear about symptoms associated with certain foods, the more I know that either certain foods are not for human consumption or the way the food has been processed has tuned it into a toxin. Lately food preservatives and milk have been in the news. Lets take a look at this and see how it affects our health. GOVERNMENT APPROVAL Many of the food additives such as MSG, BHT and BHA are chemical food additives considered safe by the FDA. These chemicals are on the FDAs GRAS (Generally Regarded as Safe) list. The coal tar dyes are known to be carcinogenic and are listed as artificial colors, flavors and odor. Coal tar is an ingredient in soft drinks, cosmetics and medications. Any product that has bright colors, strong flavor or odors has coal tar in them. Foods with color dyes blue #1 & #2, red #3 and yellow #6 have caused cancer (brain, adrenal, thyroid and kidney) in lab rats and mice. There is another additive called DES (diethylstilbestrol), which is an artificial sex hormone used in food production. DES residues are found in 85% of all meats sold in the US. The residues are considered dangerous and the FDA is aware that DES causes cancer in organs especially the uterus and breast. The US is prohibited from exporting meat to 15 countries and 21 countries ban the use of DES. TOXIC MIX According to Dr. William Lijinski of the University of Nebraska, when we ingest foods with preservatives and color enhancers it causes the body to produce nitrosamines. This toxic mix causes liver, stomach, brain, bladder and kidney cancer. Dr. Lijinski calls this, the perfect carcinogen. We are also told that drugs such as antibiotics, aspirin, diuretics, immuno-suppressants, amphetamines and others predispose us to cancer. According to Dr. Ronald J. Grisanti of the Grisanti Center of Integrative Medicine, he says, Taking prescription drugs is really a toxin made to shock the body into healing itself. Drugs are poisons and they rouse the human body into a supreme effort to throw off the poison. The result is a general weakening of the organs, a transfer of the site of disease to a different area of the body, which temporarily smothers symptoms, until later when a more deadly form of the disease emerges. STAPLE FOOD One of the most popular staple foods in America is dairy. You may be aware of the contents of processed milk (regular or organic) that it contains 59 active hormones, fat and cholesterol. This is enough to cause allergic reactions in the human body. Add the

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herbicides, pesticides and dioxins (up to 200 times the safe levels) plus 52 antibiotics, blood, pus, feces, bacteria and viruses and you can see why pasteurization was an attempt to purify milk. Countries that pasteurize milk have high rankings in the following diseases: heart, cancer, asthma, emphysema, pneumonia, diabetes, kidney and liver disease. The natural growth hormone in cows milk (IGF-1) is necessary for young animals, they need their mothers milk to help them grow quickly, however human adults do not. Whats worse is we dont leave this growth hormone alone and inject cows with Monsantos rbGH (Posilac) growth hormone chemical to make cows produce 80% more milk than normal. Before this hormone tweaking, cows produced just 1-4 pounds of milk daily and most of it was made into butter or cheese. With the injected hormones, cows produce 55+ pounds of milk per day in order to make milk a staple food. The report on this growth hormone chemical in test animals showed it had direct effects but were left out of the reports. The Canadians read the real data before it went missing and they banned the use of rbGH. Despite what we are told by the FDA that growth hormones are destroyed in the stomach, which could not be true or baby calf would not grow rapidly. The RDA of milk for human consumption is 24 ounces (3 cups) per day. Follow that recommendation and youll have 10% increases in growth hormone (IGF-1) in your blood serum. But most Americans are also consuming ice cream, cheese, yogurt and hidden milk in other foods on a daily basis. Therefore, the typical American consumes 39% of their daily diet from dairy. DAIRY TREE Other products made from milk such as cheese are also difficult for the human metabolism and most are not making the connection that not all food is good food. Each piece of hard cheese contains ten times what is in milk. It takes ten pounds of milk to make one pound of cheese. Each spoonful of ice cream has twelve times and butter has twenty-one times the fat molecules in one sip of milk. Cholesterol wise, if you consume three glasses of milk per day it is equal to 53 slices of bacon. The marketing to get us to consume more dairy is so we have strong bones from calcium. We are consuming 80% more dairy and osteoporosis is up 64% since 2001. Milk is an inferior calcium food source since it has insufficient magnesium and boron content for the proper absorption of calcium for strong bones, muscle and connective tissue. Cows milk contains 10% calcium and insufficient amounts of magnesium and boron. Your body requires a 2:1 ratio of calcium, boron and magnesium for proper uptake. The cows know where to find this perfect ratio green plants. PROCESSING Since cows milk has bacteria it is pasteurized at up to 162 degrees F for less than 30 seconds. Why are we told that to kill bacteria in water we have to boil it at 212 degrees F for several minutes? Commercial cows milk sitting at room temperature will double the number of bacteria every 20 minutes. The standard for cows milk is that it is allowed to have 750,000 somatic (pus) cells and 20,000 bacteria pathogens for every cubic centimeter of liquid before it is pulled from the market. So, for every quart of milk you consume it has 20 million live bacteria and 750 million pus cells. What would one cup of milk have? Oh, 4,731,600 bacteria and 177,441,150 pus cells. Yuk! VITAMIN D What about the benefits of the vitamin D added to milk? Isnt it worth it to drink milk for the extra vitamin D? They fortify the milk with vitamin D-3, which is made from pig skin. Pigs absorb sunlight and convert it in their skin to vitamin D-3. Other sources for the

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vitamin D-3 are; sheep skin, fish liver and pig brains. Therefore, it may be difficult to obtain truly kosher milk. MD SPEAKS OUT Dr. William A. Ellis has this to say about dairy products, I like milk, ice cream and cheese just as much as anyone else but I dont eat them because I know better they are simply no good for humans. When asked why he said that Dr. Ellis explained that milk or milk byproducts are harmful to adults and infants because it contributes to constipation, chronic fatigue, arthritis, headaches, muscle cramps, obesity, allergies and heart problems. He also adds that many people are undiagnosed with lactose intolerance. Ill say, as a child I suffered from eczema, ear infections, pneumonia and a sluggish bowel and it was all because I was allergic to milk. Once I got the milk out of the diet, cleansed the bowel and other organs I didnt have ear infections, sore throats or bouts of pneumonia every year. Diary products coat the system with mucous and trap toxins in and slows the system form detoxifying and hinders the healing process. MILK & YOUR HEART According to the research Dr. Ellis did regarding milk, blood analysis of his patients and the heart, he found that cows milk contains an enzyme (xanthine oxidase or XO) and it attacks the arteries of the heart and causes angina and atherosclerosis. He confirmed research done on this by Dr. Kurt A. Oster, Chief of Cardiology at Park City Hospital in Bridgeport Connecticut. Dr. Oster found that when he took 75 of his patients off dairy and gave them vitamin B & C nutrition, it help combat the milks XO enzyme. Dr. Kurt Esselbacher, Chairman of the Department of Medicine of the Harvard School says, Homogenized milk because of it XO content, is one of the major causes of heart disease in the US. You dont see the XO enzyme problem with un-homogenized milk. Probably why the Feds raided the raw milk businesses; cant have Americans finding out that milk keeps the American Heart Association and countless medical professionals in a job. The other problem Dr. Ellis found with milk is that it leads to overweight problems obesity. People are drinking milk instead of water to quench thirst. Each glass of milk contains 165 extra calories. This problem is worse with cheese and most cheese contains refined salt. Cheese eaters usually have problems with headaches. We first learned of cheese causing headaches in the 1780s when a British physician, John Fothergill, did research showing the link between cheese and migraine headaches. Modern scientific research has confirmed Fothergills findings and also discovered why. In 1971, Dr. Edda Haningtons research found that cheese contains tyramine protein, which causes migraine headaches. A study in 1974 discovered a second protein (phenylethylamine) in some cheese that also causes headaches. MORE REASONS Researchers have also discovered that milk products neutralize hydrochloric acid forcing your stomach and digestive system to work twice as hard to digest protein and convert it to amino acids for energy for the cells. With persistent milk consumption the glands producing the hydrochloric acid will break down and you wont absorb the nutrients you need from your food. The dairy products will coat the digestive system with mucous, which is very sticky. Cheese especially will cause mucous to accumulate and affect the sinuses and lungs prepping you for sinusitis and pneumonia. Over time,the mucous coating the intestine will turn hard on the inner lining and prevent nutrition from being absorbed. Poor absorption leads to fatigue and attempting to compensate with overeating. Other problems will occur such as constipation, sluggish bowel and prevent

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adequate toxin removal. Leaking gut syndrome will most likely follow causing many different symptoms such as back pain, sciatica and reproductive problems. RAW Vs PASTEURIZED Dr. Ellis had his opinion on the controversy of raw milk verses pasteurized milk. Processing the cows milk removes the vitamins and minerals; 25% less B complex, 50% less vitamin C and significantly less iron and enzymes. Pasteurization destroys antibodies in the milk to protect you against bacteria. So, pasteurization does not purify milk. Dr. Ellis compared freshly drawn milk from healthy cows, which contained about 250 bacteria per milliliter. The Grade A pasteurized milk contained about 100,000 bacterial organisms per milliliter and Grade B milk contained 200,000. So America, if you want 40 times more bacteria in your milk - buy pasteurized. However, this is not an endorsement to buy and consume raw milk or pasteurized milk. Personally, I stay away from all dairy. Dr. Ellis says that even the slightest use of milk products (1 teaspoon here or there) will cause health problems. People out there have trouble processing the thought of living without milk, sour cream, cottage cheese, yogurt, cheesecake or ice cream. Well, according to science if you dont, you wont be living as long as you could. Take a three-month break from all dairy and see if you dont feel better. Nutritionists assumed that all the nutrients in milk are automatically absorbed properly and utilized by our body and that is why we are taught that dairy is good for us. HERBS TO THE RESCUE If you need more calcium and want to avoid the health problems dairy causes, look to your fresh fruits, vegetables and herbs. Call the folks at Apothecary Herbs for a free list of foods high in these nutrients. Also check out their concentrated liquid Calcium Formula and Body Foundation Food mix made from certified organic herbs to provide the nutrition God intended your body to have. Formulas to strengthen the cardiovascular system, headache and organ cleansing to clear away mucous and toxins are also available. Call to order or for your free catalog at 866-229-3663, International 803-7460219 online http://www.thepowerherbs.com, where your healthcare options just became endless. SPECIAL GUESTS Herbalist Wendy Wilson will be interviewing chemist and author Shane Ellison of Over-The-Counter Natural Cures on her GCN Saturday morning show at 7:00 am EST on October 1, 2011 and on her evening show on AVR on Thursday at 7:00 pm EST. Dont miss this very interesting and informative guest. For a free chapter sample of Shanes book go to my home page at http://www.thepowerherbs.com under Whats New. Also, on Tuesday, October 11, 2011 at 7:30 pm on AVR Wendy will be interviewing Dr. Malcolm Hill author of Gods Healthcare Plan. Dont miss these important interviews to improve your health. More information on Wendys show (stations and times) is on her website http://www.thepowerherbs.com under Radio Archives. PURE ENERGY Pure energy is organic and instantly absorbed transporting nutrition to every cell in your body. It is a super food for the body to repair, build and fortify itself. Where do you get it? Its called Body Foundation Food Mix and is at Apothecary Herbs 866-2293663, International 803-746-0219 http://www.thepowerherbs.com. This pure energy food source is so efficient; you wont feel hungry between meals and can safely lose weight.

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MALE & FEMALE ORGAN CLEANSES KITS Dont give disease a foothold. You will have the power to cleanse the bowel, urinary, liver, gall bladder and blood system with this cleanse package. For added cleansing, ask about how you can upgrade your order to include the prostate cleanse for men or the Kidney/Bladder cleanse for females. Go to http://www.thepowerherbs.com or call their 24-hour live customer service line 866229-3663, International 803-746-0219. NEW MALE HORMONE FORMULA NOW AVAILABLE Apothecary Herbs brand new formula to help balance male hormones Male Hormone Formula. Call 866-229-3663, International 803-746-0219 http://www.thepowerhergs.com THE POWER HERBS e-BOOK By popular demand The Power Herbs e-book is available with symptom/herb reference guide, information on organ cleansing and how to make your own herbal tinctures plus a whole lot more. Go to http://www.thepowerherbs.com and click on The Power Herb book cover on the right side of the home page to order. You must have email to order and receive the e-book download version of The Power Herb book for just $14.99. At this time, we do not offer this title in hard copy. SAVE ON THIS ITEM IN THE STOCK-UP SPECIAL $12.75 WHEN YOU ORDER 2 OR MORE. NOW THROUGH 8/31/11. MAKES A GREAT GIFT! Extra Strength Pain Relief & Emergency Heart Attack Pack Apothecary Herbs has the only double strength tincture on the market Extra Strength Pain Relief. Most companies wont take the time and expense to make a double tincture, but they enter the system in 60-seconds and work for 12-hours for just $25.95. If you cant get to an emergency room or medical doctor in time you will want the five powerful formulas in the Heart Attack Pack for just $99.00 (STOCK UP SPECIAL PRICE $84.15). Call Apothecary Herbs 866-229-3663, International 803-746-0219or order online at http://www.thepowerherbs.com. PROSTATE KIT THAT WORKS! Go to Apothecary Herbs http://www.thepowerherbs.com and type in Prostate in the search box or for more information or call 866-229-3663, International 803-746-0219. ONE-YEAR SUPPLY OF HERBAL MEDICNE (shelf life 10 to 15 years) See Apothecary Herbs One Year Supply of Herbal Medicine at http://www.thepowerherbs.com or call 866-229-3663, 803-746-0219. Call for a customized year supply or to set up installment payment for this package. WENDY WILSONS HERB TALK LIVE RADIO SHOW & ARCHIVES - Herb Talk Live is Internet streamed on www.gcnlive.com every Saturday 7-8:00 a.m. EST. Weekly shortwave; Thursday 4:00 p.m. rebroadcasts at 11:00 p.m. on WBCQ 7.415, American Voice Radio (pod cast, DSL, satellite) Tuesday & Thursday 7:00-8:00 p.m. EST. Radio show archives at http://www.thepowerherbs.com. Be well Herbalist, Wendy Wilson GOJI BERRIES Wild crafted Gobi berries full of antioxidants are now available in the 16 oz. size at Apothecary Herbs. Choose between 8 oz. for just $15.50 and the 16 oz. for just $25.80. 866-229-3663, International 803-746-0219 http://www.thepowerherbs.com

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OUR VERSION OF THE ECONOMIC STIMULUS Apothecary Herbs is offering 15% off your total order before shipping when you print off your shopping cart order online or fill out the catalog order form and mail in your order with your check or money order. Get prepared, healthy and save what could be better than that? International orders can send an International Money Order and save 15% before shipping. Apothecary Herbs, 1646 West Hwy 160, Ste. 8148, Fort Mill, SC 29708 USA.

GOLD- LETTERS From a Subscriber: Dear Bob, Ecuador, where I am residing and to which I will return in a couple of weeks, now levies a tax of 45% on incoming gold coins. I would like to have my coins go with me but that is a pretty substantial loss and also others have had their coins confiscated on entry for some vague infringement. Thank you for all that you do.

EUROPE LETTERS From a Subscriber: Subject: Point of interest Hi Bob Saturday the 10th of September is building up to a major event in Thessaloniki Expo. The outraged from Athens and all over are organizing to be there. Papandreou who will speak there, has arranged for 10,000+ police to be there. Will let you know what happens. Best regards, From a Subscriber: Hi Bob I hear 11,000 police are blocking all roads to keep demonstrators 100+ meters away from Papandreou. Word is this will be bigger than Athens. Elections are imminent, every body is talking about it. All kinds of groups are going to strike that day, Taxis, buss drivers, pharmacists etc.. Government is broke, they managed to find some money to meet payroll. Wealthy Arabs are looking at resorts and Islands. Ertogan of Turkey said he will interfere with the Cyprus Israeli exploration of the coast of Cyprus, he wants part of it, even though it is nowhere near their waters will hit the faan.

Hi Bob I got clarification, the taxis, pharmacists various government employees are going on strike starting Monday. TROYKA left very angry, so now they are telling them, they will retire 200,000 government employees out of a total of 500,000 hoping to impress them (TROYKA), and bring them back. They will offer them some kind of pension, which would be much less than they make now, that is not going to go well, this people have families, they are not old. The real cuts in income have not hit the public yet, when they get hungry expect action. One party chief said Papandreou better go to elections soon or he will end up in that

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place Gudi (where they executed traitors many years ago). Saturday big day! Best regards
HEALTH LETTERS From a Subscriber: I just returned from another 4 days in hospital with heart problem symptoms that turned out negative after my 7th angiogram in 14 months. Turned out my mind caused my symptoms which pisses me off (at myself) but I have forgiven myself since I admit that I have put myself under quite a bit of stress over the years battling organized crime which includes the medical mafia. These four days at the hospital produced, as usual, another series of incredibly good and bad things about the "health care" system, doctors and nurses. I met the most wonderful doctor (a lady) I have ever met. In fact, I didn't think such a person still existed in the system. It made the trip worth while and gave me renewed hope that there still is hope. One of these days I hope to document my experiences as both a cancer and heart patient even if continuing my battle produces more medical problems On my first day back, I just watched yet another amazing documentary involving the medical mafia and their attacks against doctors who put their patients welfare above the medical system which is dedicated to keeping us sick while they reap the financial benefits. The documentary is called "Burzynski" and is available through Amazon.com http://www.amazon.com/Burzynski-Movie-Cancer-Serious-Business/dp/B003X3CF68 I am often amazed how obvious the crimes are that have and continue to be committed against the citizens of the world. The crimes related to health care are just another category of crimes which include massive financial crimes, mass murder and atrocities, crimes against nature and the earth itself, etc. etc. The criminals involved in these crimes are absolutely obvious to anyone who does minimal research - the elites who own and control our banks, wall street, mainstream media and our government and all it's agencies. Yet we continue to passively try to go about our lives, most doing everything to avoid watch, reading or even thinking about the problems all around them. That only works for so long - and the time period is shortening for all of us. So many are now losing their jobs, businesses, and health and are seeing the same thing happening to their loved ones. Yet so many continuing to try to do business as usual, saying to themselves there is nothing I can do - mothers, fathers, doctors, nurses, hospital administrators, military members, police, etc. I have found an amazing number of doctors who KNOW what is going on and are trying to work around the criminal system. The same applies to so many of us - we are continuing to try to work and live around a system that is killing us and destroying our planet. The enemy is obvious and absolutely CAN be defeated. When will we finally say enough ???? Chuck Augustin US LINKS MSNBC distorts post-debate poll results to falsely depict Ron Paul as just barely winning http://www.naturalnews.com/033528_Ron_Paul_smear_campaign.html#ixzz1XT5jPGFD 22

Sen. Rand Paul: Rick Perry and Ron Paul had a Friendly Exchange, NO Harsh Words At All During B http://12160.info/profiles/blogs/2649739:BlogPost:641030 Pro-Israeli Group Calls Pro-American Veterans Group Extremist! http://www.intifada-palestine.com/2011/09/pro-israeli-group-calls-pro-american-veteransgroup-extremist/ CLASSIC CNBC EXCHANGE - Rick Santelli Battles NYT's Tom Friedman Over Social Security: "You're An Idiot" http://dailybail.com/home/classic-cnbc-exchange-rick-santelli-battles-nyts-tomfriedma.html Obama lays out $447b jobs plan http://www.boston.com/news/politics/articles/2011/09/09/president_obama_calls_for_44 7_billion_to_boost_jobs/ You must have less so bankers can have more. A lot more. http://vidrebel.wordpress.com/2011/09/08/you-must-have-less-so-bankers-can-havemore-a-lot-more/ Rick Perrys Ponzi-Talk Implies Fraud in Long-Popular U.S. Social Security http://www.bloomberg.com/news/2011-09-09/perry-s-ponzi-talk-implies-fraud-in-longpopular-social-security.html Show True Compassion by Abolishing FEMA http://www.24hgold.com/english/news-gold-silver-show-true-compassion-by-abolishingfema.aspx?article=3618760632G10020&redirect=false&contributor=Ron+Paul Say Nothing to the Cops: Ever, Sgt. Schultz Says http://lewrockwell.com/peters-e/peters-e90.1.html Cohan & Taibbi: Shut Down The SEC And Start Over http://dailybail.com/home/cohan-taibbi-shut-down-the-sec-and-start-over.html Janet Tavakoli: Fraud As A Banking Business Model http://dailybail.com/home/janet-tavakoli-fraud-as-a-banking-business-model.html "A Message to the Free World" Bubbleheads by Thomas Yates http://statichost.dyndns-free.com:81/articles/Bubbleheads.html Four former News executives challenge Murdochs testimony http://www.boston.com/news/world/europe/articles/2011/09/07/former_executives_challe nge_murdochs_testimony/ Israeli Oppression Continues While Talking Peace - by Stephen Lendman http://sjlendman.blogspot.com/2011/09/israeli-oppression-continues-while.html

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America's Sick Economy - by Stephen Lendman http://sjlendman.blogspot.com/2011/09/americas-sick-economy.html US falls to 5th in global competitiveness, survey shows http://www.msnbc.msn.com/id/44423519/ns/business-stocks_and_economy/t/us-falls-thglobal-competitiveness-survey-shows/?GT1=43001 Obamas ratings sink to new lows http://news.yahoo.com/obama-ratings-sink-lows040500121.html;_ylc=X3oDMTNndWZjdnEyBF9TAzc2NjUxNDUEYWN0A21haWxfY2IE Y3QDYQRpbnRsA3VzBGxhbmcDZW4tVVMEcGtnAzAwOGY2ZTEwLTA2MTEtMzAzYy 05ZWY1LTNjZjIxMGJkOTM5MgRzZWMDbWl0X3NoYXJlBHNsawMEdGVzdAM-;_ylv=3 Prosecutors have decided to take no action against the officers. http://www.rys2sense.com/anti-neocons/viewtopic.php?f=11&t=26514 Rick Perry AGREES with Obama: Open Borders for America! http://www.youtube.com/watch?v=UwD84nKA5y0&feature=youtube_gdata_player PRESIDENT OBAMA'S ASSAULT UPON THE U.S. CONSTITUTION http://www.larouchepub.com/eiw/public/2011/2011_30-39/2011-34/pdf/31-33_3834.pdf Are Americans Ready for All-Out Civil War? http://www.thepostemail.com/2011/09/07/are-americans-ready-for-all-out-civil-war/ The Obama Presidency by the Numbers http://online.wsj.com/article/SB10001424053111904583204576544712358583844.html WHO do you think won the Republican debate at the Reagan Library? http://firstread.msnbc.msn.com/_news/2011/09/07/7658608-who-do-you-think-won-therepublican-debate-at-the-reagan-library 9/11, the CIA & the Art of the Hangout (Eyeopener Preview) http://www.corbettreport.com/911-the-cia-the-art-of-the-hangout-eyeopener-preview/ Nato stops sending prisoners to Afghan jails over torture fears http://www.guardian.co.uk/world/2011/sep/06/afghan-jail-torture-fears-nato Britain, European govts helped US commit countless crimes, colluding with torture http://www.dailynews.lk/2011/09/06/wld00.asp Council of Europe demands truth on CIA 'black sites' http://articles.cnn.com/2011-09-05/world/europe.cia.rendition_1_black-sites-cia-officerromania?_s=PM:WORLD Lyndon LaRouche International Emergency Presidential Address http://www.larouchepac.com/node/19316 Rick Perry- Arrogant Ass http://dont-tread-on.me/rick-perry-arrogant-ass/

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Ron Pauls Secret Weapo http://www.nysun.com/editorials/ron-pauls-secret-weapon/87479/ Pictures Show Perry Physically Intimidating Ron Paul http://www.infowars.com/pictures-suggest-perry-attempted-to-physically-intimidate-ronpaul/ Allegedly Foiling Jerusalem Terrorist Attacks - by Stephen Lendman http://sjlendman.blogspot.com/2011/09/allegedly-foiling-jerusalem-terrorist.html The Irvine 11 - by Stephen Lendman http://sjlendman.blogspot.com/2011/09/irvine-11.html 8 Things You Should Know About the New Lawsuit Against the Banks That Torpedoed the Economy http://www.alternet.org/story/152312/8_things_you_should_know_about_the_new_lawsu it_against_the_banks_that_torpedoed_the_economy?akid=7534.205278.uWwHCZ&rd= 1&t=3 Keiser Report: Market Schizophrenia (E181) http://www.youtube.com/watch?v=VsgS9PsUf5U Ron Paul wins GOP debate http://maxkeiser.com/2011/09/08/ron-paul-wins-gop-debate/ Central Banker Trichet Renews Call for European Global Governance http://www.infowars.com/central-banker-trichet-renews-call-for-european-globalgovernance/comment-page-1/#comment-2701711 Senate Approves $500 Billion Increase in Borrowing Authority http://blogs.wsj.com/washwire/2011/09/08/senate-approves-500-billion-increase-inborrowing-authority/?mod=google_news_blog GOLD LINKS China Confirms Gold Price Suppression Part 1 http://www.24hgold.com/english/news-gold-silver-china-confirms-gold-price-suppression-part1.aspx?article=3619215774G10020&redirect=false&contributor=Julian+D.+W.+Phillips Gold, Deflation and Krugman's Flawed Analysis http://www.24hgold.com/english/news-gold-silver-gold-deflation-and-krugman-s-flawedanalysis.aspx?article=3618295702G10020&redirect=false&contributor=Adrian+Ash The Swiss Franc Abdicates the Crown - Gold and Silver are King! http://www.marketoracle.co.uk/Article30316.html

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The ever-strengthening case for gold and silver investment http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=135114&sn=Detail&pi d=110649 CANADA LINKS B.C. tops nation in non-mortgage debt http://www.globaltvbc.com/bc+tops+nation+in+nonmortgage+debt/6442477627/story.html EUROPE LINKS Swiss Open Fresh Round in Currency War Ignited by Global Economic Slowdown http://www.bloomberg.com/news/2011-09-06/swiss-open-new-round-in-currency-warsignited-by-global-economic-slowdown.html Video enthllt verborgene Ziele der Euro-Rettung http://www.welt.de/wirtschaft/article13588084/Video-enthuellt-verborgene-Ziele-derEuro-Rettung.html Europes Troubled assets Bank Bailout: Germanhys Chancellor Merkel pushes for a Eurozone Banktatorship http://weeklyintercept.blogspot.com/2011/09/europes-troubled-assets-bank-bailout.html Choke Therapy: 'Germany must quit eurozone to end debt crisis' http://www.youtube.com/watch?v=cMgGo-Qz4uI Systematic Israeli State Terror - by Stephen Lendman http://sjlendman.blogspot.com/2011/09/systematic-israeli-state-terror.html 9/11 Mythology: The Big Lie of Our Time - by Stephen Lendman http://sjlendman.blogspot.com/2011/09/911-mythology-big-lie-of-our-time.html Germany pushes Greece to the brink in dangerous brinkmanship http://www.telegraph.co.uk/finance/financialcrisis/8751180/Germany-pushes-Greece-tothe-brink-in-dangerous-brinkmanship.html European stocks drop before G7 meeting http://uk.finance.yahoo.com/news/European-stocks-drop-G7-afp2333141286.html?x=0&.v=1 Probability of Large-Scale False Flag Terror Event Increasing As European Banking Panic Looms http://tarpley.net/2011/09/09/probability-of-false-flag-terror-event-increasing ENGLAND LINKS

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Pensioners forced back to work due to soaring cost of living and income squeeze http://www.dailymail.co.uk/money/pensions/article-2034662/Pensioners-forced-worksoaring-cost-living-income-squeeze.html A fifth of British households have no one in work, and there are three cities where a THIRD of households are jobless http://www.dailymail.co.uk/money/news/article-2035032/A-fifth-British-households-workcities-THIRD-households-jobless.html World's biggest economies are 'close to grinding to a halt', says OECD http://www.dailymail.co.uk/money/news/article-2035080/Worlds-biggest-economiesclose-grinding-halt-says-OECD.html MIDDLE EAST - LINKS A thousand-and-one reasons why Palestine must get independence http://sabbah.biz/mt/archives/2011/09/08/reasons-palestine-independence/ HEALTH LINKS FDA May Be Getting Ready To Water-Down Your Vitamin Pills http://lewrockwell.com/sardi/sardi184.html

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