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THE INTERNATIONAL FORECASTERSATURDAY, FEBRUARY 26, 2011

02/26/11 (8) IFE-MAIL ADDRESSES

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Every Wednesday and Saturday during Mach 2011

Once a man has made a commitment to a way of life, he puts the greatest strength inthe world behind him. It's something we call heart power. Once a man has made this

commitment, nothing will stop him short of success." Vincent Lombardihttp://www.youtube.com/watch?v=rMg_avB6spQ Freedom Files w/James BurnsWeekdays! 3-5 pm (Central)http://freedomfiles.us/That is where you can snag the interview, Bob's a pro and I love having him on...http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=81009&cmd=tc The Corbett ReportInterview 293 Aidan Monaghan

http://www.corbettreport.com/interview-293-aidan-monaghan/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CorbettReportRSS+%28The+Corbett+Report%29James Corbett on The Alex Jones Showhttp://www.corbettreport.com/interview-294-james-corbett-on-the-alex-jones-show/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CorbettReportRSS+%28The+Corbett+Report%29Video James Corbett on The Alex Jones Showhttp://www.corbettreport.com/video-james-corbett-on-the-alex-jones-show/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+Corbet

tReportRSS+%28The+Corbett+Report%29US MARKETS

The world is awash in dollars and that is being reflected in the USDX, which aresix major currencies versus the dollar. The loss of value is being loudly trumpeted as theIMF says a replacement must be found. This is the same IMF that has been foisting non-gold backed SDRs on us since 1969. Every time they have tried this it has been afailure. We can give the Illuminists an A for effort, but what they do not get is that the

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professionals and investors see right through it. Another batch of fiat currency is notgoing to solve the worlds currency crisis, which can only be saved by gold backing.Needless to say, the mainstream media will never talk about this in realistic terms,because the elitists control them. The denigration of currencies versus gold and silverare advancing apace, as the elitists day after day try to suppress gold and silver prices.

The major media is as complacent as ever because they are totally controlled. It

is not ignorance or incompetence. It is control. The media tells us the stock market isheaded higher, but fails to tell us why. The reason is manipulation by the USgovernment, and those who control it, and funds swamping the market via QE2. This isan economy where few jobs are being created, unemployment remains steady and weare told that a rising stock market means recovery, which is far from the truth.Propaganda flourishes as well as physiological warfare. There is no truth for theAmerican people and the people of the world, it is all controlled and capsulated forconsumption and control. There is no real recovery; it is all smoke and mirrors to misleadthe public. Government and the media declare there is no inflation, but yet it abounds.This is the same media that has ignored the climb in gold and silver prices for 11 years.They have few explanations as to why gold and silver prices are rising. It is because thevalue of fiat currencies are falling versus gold and silver, but that is not the explanation

we hear. We are told a number of absurd falsities.Gold and silver are just now beginning to break out of government instigated

doldrums, which has been government induced by those who own the Fed. None of theold tricks and nostrums is working anymore, so new tactics are being taken. You haveseen ongoing attacks on gold and silver that has been going on since 1988, and in thelast 15 years they have been relentless. As of late the theme is destroy the gold andsilver shares to make people believe that there is little value there, to shake novices outof their positions. The psywarfare plan is to force down gold and silver share prices andgold in order to destroy silver prices so that JPM and HSBC can cover their shorts. Ithasnt worked and wont work. Needless to say, we get the usual from CNBC, CNN,MSNBC and Fox. Is it a bubble or a craze? Again, what else would you expect from amedia which is usually wrong.

The debt and inflation will become more terse as we struggle forward.Government knows it has to cut Social Security, Medicaid and Medicare, screwing theparticipants and better enabling government to control and reduce these benefits.Allowing government to renege over and over again does not instill confidence in itscitizens. There are mammoth cuts coming, but the military industrial complex willexperience few. This is how the elitists keep their empire by threat of force. Just lookaround you and look at the Patriot Act and Homeland Security or the new Gestapo theFBI. Yes readers, you already live in a police state.

As Americans overlook these developments and the fact that anyone whocriticizes government is a terrorist, price inflation is destroying their purchasing powerand its being done deliberately, as a result of saving a broken banking system that onlycatered to the wealthy and connected. Loans are available, but generally only to AAA

corporations and fellow elitists, as interest rates begin their devastating rise into thefuture. That needless to say will be accompanied by a falling dollar and higher gold andsilver prices. Many other countries have duplicated these events, so not only will the USdollar fall in value, but also so will the currencies of most every other country versus oneanother and particularly versus gold and silver. In case you missed it, or forgot, versusnine major currencies over the past 10 years on average gold has appreciated 15-1/4%annually and silver 20-3/8% annually, thus, these facts are nothing new. They have justbeen hidden from you. As a result of the loss in purchasing power and ever building debtwe have seen demonstrations and riots throughout Europe for the past two years. That

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has been followed for the same reasons, plus price inflation, in the Middle East with theoverthrow of the governments of Tunisia and Egypt. Several more monarchies anddictatorships are on the verge of falling as well. In the US the attempt to radically changeretirement benefits and unions has led to demonstrations in Wisconsin, Indiana andOhio. We believe in time as unemployment rises with prices and there is no economicrecovery that demonstrations will increase and they could, as they have elsewhere, turn

violent. If police in the US fire on civilians or beat them into submission there will beretaliation and law enforcement will get decimated.

There is absolutely no way the dollar and other currencies can be saved. That iswhy the prices of gold and silver move relentlessly upward. There already is waningconfidence in the dollar and many other currencies, and that is why the USDX, the dollarindex, as a yardstick, is inferior to measuring all currencies versus gold and silver. Youmay not realize it now, but you are living through the collapse of fiat money systems.The future of monetary and fiscal matters will take many twists and turns, some good,some bad. It is far too early to make solid predictions on what routes will be taken. Atthis juncture it is easy to see where we are headed, but the future is more difficult. Itcould be inflation, hyperinflation, deflationary depression and another contrived war todistract people from the more important issues of the economy, finance and economic

survival. In the meantime in reaction to such events gold could go to $5,000 or $10,000and silver $100 to $500, as the flight to quality becomes a stampede.

Our studies and intelligence tells us that the elitists running the show deliberatelyplanned a collapse so they can form a world government. For them everything is on theline. If they lose theyll lose everything. If we lose the same could be true. We are notgoing to lose, because to many people worldwide already know what they are up tooand that what we are experiencing was planned that way. Why do you think QE1financial sectors were saved in the US and Europe and in QE2 the US government wasbailed out. It is very obvious to thinking people as to what is taking place. The edificethat underlies elitist power has been bolstered as the US and European economics arebeing allowed to fail. Tough decisions will have to be made to save the dollar and theeconomy and that is not going to happen because those running the show behind the

scenes do not want that to happen. The route being presently taken is that of the Fedfunding all Treasury and Agency needs including deficit spending. In such a scenariogold and silver prices have no limits to the upside. It could also be that the majority ofyour gold and silver holdings may never be sold due to the ongoing turmoil the worldmay be buried in.

The stock market in Dow terms is about 12,400 due to trillions of dollars beingpoured into the economy via the Fed and QE1 and QE2 and via the manipulation of ThePresidents Working Group on Financial Markets. The insiders know what is going onbut investors and the public do not have a clue. How is it that denizens of Wall Street getricher and the poor get poorer? It is because Wall Street and banking control thegovernment. The question arises is the market overpriced? Of course it is, but hundredsof billions of dollars are available to Wall Street and banks to speculate in their rigged

game. Can you imagine that it is possible for several banks and brokerage houses everyday for months to have no losing trading days? Of course that is not normally possible.That can only happen when they create the inside information. They are slaughtering theaverage investor. Will the market collapse again? Of course it will, but the timing is verydifficult. Perhaps if there is an announcement that QE2 is over and there will be no QE3,maybe major unrest in the Middle East will cause a correction, or perhaps a realizationthat there will be no further recovery, or perhaps well see demonstrations in the USsimilar to those in the Middle East? After adding tax-pork legislation of $862 billion lastyear the administration is asking for $200 billion more. What the Fed has done with zero

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interest rates and quantitative easing at least temporarily is put a floor under the market.Eventually that floor will crumble as real interest rates climb further and perhaps QEcomes to an end. Needless to say, were that to happen there would be total collapse.The US and for that matter, European economies cannot survive without major stimulus.In Europe the financially healthy nations are supplying $1 trillion to six poorer nationsknowing full well $3 to $5 trillion is needed. German Chancellor Ms. Merkel says

Germany will hold the euro together. Last week in elections in the Hamburg region thevoters sent her a warning by crushing CDU candidates. If the CDU wants to be thrownout of office they will continue to advocate more support for sick members of the eurozone. We think the support by Germany is at an end and that means it is only a matter oftime before the euro is history. In this regard the G-20 meeting went nowhere, as sicknations demanded that the solvent nations stop exporting so much. One asks wheredoes it end.

Eventually the Dow will fall. When that will begin we do not know, but if it followshistory it should fall to 6,650 and then to? Dow 3,200. It could fall lower, but 3,200 is thegoal. The damage wreaked on the economy by deficit spending and QE will take yearsto correct. The longer the upside continues on the Dow the higher gold is going to gobecause in terms of gold the US dollar and other currencies will continue to fall. That is

why the US Treasury and the Fed and other central bans want so desperately to stopgold and silver from going higher, which gets more difficult with each and every day.

That brings us to the performance of gold and silver shares, which have beenunder attack by government consistently for the past 15 years. You have major sharesprices reflecting in many instances reserves at $300 an ounce or at 25% of gold marketprices. Many of these operating companies are reporting profit increases of 20% to 40%.We have been involved in mining shares for 51 years and those who try to put a P/Eratio on producing mines are pursuing a futile quest. The reason is the enormousleverage in these shares that you are now seeing. In 1980 producers saw P/Es of 350times earnings. Gold is the perfect hedge against the collapse in value of other assets,currencies and inflation. For 6,000 years it has had no peers. Silver runs a close secondas a store of value. Gold and silver are a reflection of the real value of currencies and

are the most stable assets in the world. The proof of the dominance of gold and silverover the past ten years has been performance. Versus nine major currencies theaverage currency has lost 15-1/4% annually versus gold and 20-3/8% versus silver.There have been no assets that can come close to matching that consistent return andthe trend is still upward. We wonder why CNBC, CNN and Bloomberg dont site thesestatistics on their programs? You all know why, it is because the elitists behind thescenes own the media. So as a result you get totally managed and slanted news. Thereis never dissension and truth.

We have talked about an eventual market correction. We have just seen over thepast six months the breaking of the bond market bubble and real estate continues itsdownward slide. That leaves gold, silver and commodities as the select investments.

In recent years real estate has proven to be a poor hedge versus inflation, as it

still resumes its downward journey. It has become illiquid at market prices and can onlybe liquidated at severely reduced prices. Over the next few years massive inventoryoverhang will take prices lower and then there will be years of stagnation. That doesntsound like a very good investment to us.

We just saw the 10-year note fall from a yield of 2.20% to its current yield of2.60%. We believe rates over the next two years could reach 5% to 5-1/2%. If we arecorrect that means 30-year fixed rate mortgagees could move to 6-1/2% to 7%. It alsotranslates into large bond losses.

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The biggest question is will there be a QE3 and hyperinflation? We do not knowfor sure, but all the signs point in that direction. That means as inflation rises so do goldand silver related assets. Will we then see a flight to quality to gold and silver? Yes, wewill. They will be the only game in town. We have been in an inflationary depression fortwo years. Next is higher inflation, probably hyperinflation and then deflationarydepression. In all these environments gold and silver related assets will be the only

place to be. These are the truthful facts of life today and a clear snapshot of where weare headed.

Get your house in order, because if you do not you wont like the consequences. Wal-Mart sales tanked, again. Sales at stores open at least one year declined2.8% y/y; total sales declined 0.5% to $71.0B. The company is experiencing its worstever stretch of sales seven consecutive quarters of decline. If not for inflation in thenecessities of life, sales would be worse. Wal-Mart saw weakness across much of its U.S. business, including electronics,consumables and clothing. The company did manage to post gain in its food businessand health and wellness products.

The use of government assistance programs to pay for goods continues to rise,

said Bill Simon, president and CEO of the Walmart U.S. business. Simon said Wal-Mart would only pass along price increases when they cannot be

avoided. It is working with suppliers to reduce inflationary pressure, where possible, oneverything from food to clothing. Housing prices tanked to new lows. The FHAs December report shows its inventory ofREO increased to over 60k, +9.5% m/m and + 47.5% y/y. Soon, Fannie and Freddie willreport its REO inventory, which added to FHAs haul should be well in excess of300,000. And people think housing stocks are buys?!?! In 1936 the Fed was able to monetize debt, as they are currently doing, untilthe bond market had a mini- collapse in September. Inflation soared into 1937. At first stocks loved the inflation but eventually inflation squeezes margins and

consumers, so solons must react. Stocks tanked 49% from March 1937 to April 1938.The DJIA declined 40% in only ten weeks into November 1937. Commodities tankedwith stocks.

Bloody Ben and US solons are replaying New Deal strategies; and businessesare doing exactly what they did back in the middle thirties hoard cash, modernize withnew equipment, which reduces employment, because they dont see the need to greatlyexpand their businesses. Liberals and Keynesians blame the push to tame out-of-control government spendingand higher bank reserve requirements for the 1937-1938 collapse. But they nevermention the underlying forces - soaring CPI coupled with stagnant job growth andHitlers annexation of Austria (international turmoil).

Yesterday, KC Fed President Thomas Hoenig asserted that an extendedperiod of low interest rates invites speculation and the US has deeply underminedfree-market capitalism.

This is a direct condemnation of Bloody Ben, B-Dud and other QE advocates. Hoenig also stated that the biggest banks should be broken up and the too-big-to-failproblem must be fixed now because I am convinced that the existence of too-big-to-fail financial institutions poses the greatest risk to the U.S. economy. In my view, it iseven worse than before the crisis. Hoenig favors privatizing FNM and FRE.

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Hoenig asserted that big financial firms must not hold the economy hostage.We stated a long time ago that large banks and funds have been financial terrorists,declaring that they would blow up the financial system and economy if not grantedunprecedented government support on the backs of taxpayersWe opined months agothat Hoenig is maneuvering to replace Bloody Ben.

In accounts of the political unrest sweeping through the Middle East, onefactor, inflation, deserves more attention. Nothing can be more demoralizing to people atthe low end of the income scale where great masses in that region reside than increasesin the cost of basic necessities like food and fuel. It brings them out into the streets toprotest government policies, especially in places where mass protests are the onlymeans available to shake the existing power structure. China and India blame the U.S.Federal Reserve for their difficulties in maintaining stable prices.

About the only one failing to acknowledge a problem seems to be the man mostresponsible, Federal Reserve Chairman Ben Bernanke.Mr. Bernanke has made it clear that his policy is to inflate the money supply. The Fed isfinancing a vast and rising federal deficit, following a practice that has been a surefire

prescription for domestic inflation from time immemorial. Meanwhile, its policies arestoking a rise in prices that is contributing to political unrest that in some cases might bebeneficial but in others might turn out as badly as the overthrow of the shah in 1979.Does any of this suggest that there might be some urgency to bringing the Fed undercloser scrutiny? Lloyd Blankfein, Goldman Sachs Group Inc.s chairman and chief executiveofficer, warned against raising base salaries on Wall Street less than eight monthsbefore his own more than tripled to $2 million.Goldman Sachs prefers paying compensation in bonuses that are contingent on thefirms performance, rather than offering guarantees or high salaries, Blankfein said in aJune 16 interview with staff of the Financial Crisis Inquiry Commission, a recording of

which was made public this month. On Jan. 28, the New York-based firm disclosed ithad raised salaries for Blankfein and four other top executives that had been $600,000.

Salary is another form of guarantee, so we would like low salaries and highcontingent comp, Blankfein said in the interview. We think the world is going in a poordirection. We think having high fixed salaries for people, or guarantees for people andlower contingent comp actually is worse behavior.Goldman Sachs raised salaries after competitors including Morgan Stanley, UBS AGand Citigroup Inc. lifted base pay for employees and executives. New U.S. rules on bankpay, approved for public comment by the Federal Deposit Insurance Corp. on Feb. 7,aim only at bonuses and leave salaries untouched.The number of applications for U.S. mortgages rose last week, led by more refinancingas mortgage rates fell to the lowest level since the end of January.

The Mortgage Bankers Associations index of loan applications increased 13percent in the week ended Feb. 18 after dropping the prior week to the lowest pointsince November 2008. The groups refinancing measure jumped 18 percent and thepurchase gauge rose 5.1 percent.

Refinancing is more sensitive to fluctuations in rates than are purchases, PaulDales, a senior economist at Capital Economics Ltd. in Toronto, said before the report.Still, he said he expected refinancing to remain soft with sales at historicallydepressed levels for perhaps two or three years.

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The average rate on 30-year fixed mortgages dropped to 5 percent as turmoil in theMiddle East and North Africa led investors to seek the safety of U.S. Treasury securities,which are benchmarks for some consumer loans, pulling down their yield. Still, mountingforeclosures, falling prices and 9 percent unemployment mean it will take time fordemand to pick up. The 30-year rate fell from 5.12 percent the prior week. It reached4.21 percent in October, the lowest since the groups records began in 1990.

At the current 30-year rate, monthly payments for each $100,000 of a loan would be$536.82, in line with the same week the prior year, when the rate was 5.04 percent.Rates Fall. The average rate on a 15-year fixed mortgage fell to 4.28 percent from 4.34percent. The share of applicants seeking to refinance a loan rose to 65.7 percent from64 percent the prior week.

The housing market is struggling to gain traction after a homebuyers tax creditexpired last year and as more properties fall into the foreclosure pipeline. Combinedsales of existing and new homes in December were at a 5.61 million annual unit pace,down from a July 2005 record of 8.53 million.

A report from the National Association of Realtors today may show existing homesales fell 1.1 percent to a 5.22 million annualized rate in January, according toeconomists estimates. Sales of previously owned homes last year totaled 4.91 million,

the lowest level since 1997. The top lawyer at the Securities and Exchange Commission and his twobrothers inherited more than $1.5 million in phony profits from their mother'sinvestment in Bernard Madoff's epic Ponzi scheme, according to a startling suit filed bybankruptcy trustee Irving Picard.

David Becker who was named SEC general counsel and senior policy directorless than two months after Madoff's arrest in December 2008 was served with legalpapers demanding return of the dirty money earlier this month, court records show.Picard's "clawback" suit claims that Becker's mother's estate of which he and hisbrothers are co-executors received more than $2 million from Madoff's crookedinvestment firm.

"The investigation has revealed that $1,544,494 of this amount was fictitiousprofit from the Ponzi scheme," the Manhattan Bankruptcy Court filing says.The Beckers' mother, Dorothy, died in June 2004. Picard's papers say $2.04 million waswithdrawn from the estate's account in February 2005, and another $1,648 was takenout three months later.

The three brothers were sued as both executors and individuals.Reached at his Bethesda, Md., home last night, David Becker said, "There's noallegations of wrongdoing on anyone's part other than by Madoff."Becker, who's slated to leave the SEC next week for a private-sector job, insisted he hadno "absolutely" no idea Madoff had been running a fraud."This is about my parents' investments. I had nothing to do with my parents'investments," Becker said.

Asked if he had told his bosses at the SEC which has been harshly criticized forfailing to uncover Madoff's $65 billion scam he replied, "I don't discuss internalconversations with the SEC."Becker served as SEC general counsel from 2000 to 2002 before returning in February2009, with Chairwoman Mary Schapiro then praising his "wisdom and careful judgment."In announcing the end of Becker's "two-year commitment" earlier this month, Schapirosaid his "wise counsel" had "served the agency and the American people brilliantly."Meanwhile, lawyers for the Mets' owners yesterday threw a brushback pitch at Picard,who has sued them to get back more than $300 million in Madoff profits. The papers,

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filed on behalf of Fred Wilpon and Saul Katz in US Bankruptcy Court, demand thatPicard turn over all discovery material so both sides will be on an even playing field. Thesides have agreed to mediation, which has already begun, overseen by former Gov.Mario Cuomo.

But "meaningful mediation will be impossible if the defendants do not haveaccess to all of the Trustee's pre-complaint discovery," the filing states.

Picard's suit, claiming the Mets' owners "knew or should have known" Madoff wasrunning a scam, was unsealed earlier this month and unleashed speculation the teamwould have to be sold to pay off its debts.

The school district plans to send out dismissal notices to every oneof its 1,926 teachers, an unprecedented move that has union leaders up in arms.

In a letter sent to all teachers Tuesday, Supt. Tom Brady wrote that theProvidence School Board on Thursday will vote on a resolution to dismiss every teacher,effective the last day of school.

In an e-mail sent to all teachers and School Department staff, Brady said, Weare forced to take this precautionary action by the March 1 deadline given the direbudget outline for the 2011-2012 school year in which we are projecting a near $40

million deficit for the district, Brady wrote. Since the full extent of the potential cuts tothe school budget have yet to be determined, issuing a dismissal letter to all teacherswas necessary to give the mayor, the School Board and the district maximum flexibilityto consider every cost savings option, including reductions in staff. State law requiresthat teachers be notified about potential changes to their employment status by March 1.

To be clear about what this means, Brady wrote, this action gives the SchoolBoard the right to dismiss teachers as necessary, but not all teachers will actually bedismissed at the end of the school year.This is beyond insane, Providence Teachers Union President Steve Smith saidTuesday night. Lets create the most chaos and the highest level of anxiety in a districtwhere teachers are already under unbelievable stress. Now I know how the UnitedStates State Department felt on Dec. 7, 1941. That was the day the Japanese

government bombed Pearl Harbor.Smith, who has forged a groundbreaking collaboration with Brady that has

received national recognition, said he believes this move comes directly from MayorAngel Taveras, not the School Department. In a conversation with Taveras earlierTuesday, Smith said the mayor also hinted at school closings but didnt elaborate.Taveras, in a statement issued Tuesday night, said the uncertainty around the citysfinances, combined with the March 1 deadline, led to this decision. Because it is tooearly to be certain of all possible changes to the school budget, Taveras said, issuingdismissal notices to all teachers provides maximum flexibility going forward.

As a Providence public school graduate, I understand how great teachers canchange lives, he wrote. I am sensitive to the uncertainty and anxiety that manyteachers felt when they received this notice. My administration will do all it can to support

our committed, hardworking teachers during this difficult time.Providence is facing a daunting budget crisis. The city had a $57-million deficit last yearand expects a higher figure for the year ending June 30. In addition, the city, under then-Mayor David N. Cicilline, nearly depleted its reserves to cover day-to-day expenses.Taveras is currently awaiting completion of a report by an independent panel, which hecommissioned to get a better handle on the citys financial situation.

Meanwhile, Smith said he was caught completely off-guard by the planneddismissals, adding that Brady didnt inform him of the decision until 5:30 p.m. Tuesdayalthough he had heard rumors over the weekend.

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He said it makes no sense to send out dismissal notices to every teacher because thedistrict has a legal obligation to educate all of its students, regardless of budgetconsiderations. You have so many students, he said. You need so many teachers.You have a student-teacher ratio of 26 to 1. Do the math.

Last year, only about 100 teachers received layoff notices, but in years past, asmany as 500 have.

Smith said the dismissals couldnt come at a worse time. The union is gettingclose to resolving a lawsuit over seniority-based hiring. The teachers contract expiresJune 30. And both Smith and Brady have staked their careers on a first-ever partnershipin which both sides have agreed to make deep reforms in four of the districts lowest-performing schools.

Were at the table with our best ideas, Smith said. To take this approach isunconscionable. For many people who purchased a home for the first time in 2008, it'spayback time. It sounded like a great deal: become a first-time homebuyer and pocketup to $7,500 in a tax credit. But if you bought that house in 2008 and received the credit,you're required to start paying it back now.

That's because the credit was actually an interest-free loan provided by thegovernment to stimulate a near-dead housing market.Unlike the homebuyer credits of 2009 and 2010, this one must be paid back over 15years beginning with this year's tax return.For someone who got $7,500, that's $500 a year."This is not a freebie," said Jackie Perlman, a tax analyst at H&R Block's Tax Institute.The 2008 credit was available to qualified homebuyers who purchased after April 8,2008, through the end of that year. The IRS has sent letters reminding folks who fall intothis category, including 45,865 taxpayers in New York State.

Many have been caught off-guard. They either forgot that the credit was a loan,or believed the loan had been forgiven as Congress subsequently passed differentversions of the homebuyer credit that did not require a payback.

"I had one client who called me in a slight panic," said Jonathan Horn, a certified publicaccountant. "People are confused."

If you got the credit and have sold your house or it is no longer your primaryresidence, the total amount you owe is due on the return for the year those events tookplace, with some exceptions.

You can choose to accelerate your payments. While the loan is interest-free,some might want to pay it back sooner rather than later."A loan is still something hanging over your head," Perlman said."Some people will say, 'Let me get this over with.'" Purchases of new houses in the U.S. fell more than forecast in January,reflecting declines in the West and South that indicate a California tax credit and bad

weather may have played a role.Sales declined 13 percent to a 284,000 annual pace, figures from the Commerce

Department showed today in Washington. The median estimate of economists surveyedby Bloomberg News projected a decrease to a 305,000 rate. Demand dropped 37percent in the West and 13 percent in the South. Homes in the foreclosure process sold at an average 28 percent discountlast year and may continue to drive down U.S. housing prices as the supply of distressedproperties grows, according to RealtyTrac Inc.

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A total of 831,574 homes that sold in 2010 had received notices of default,auction or repossession, the Irvine, California-based data seller said today in astatement. Properties in distress accounted for almost 26 percent of all home sales lastyear, down from 29 percent in 2009. Sales of previously owned U.S. homes rose unexpectedly in January, but

prices fell to their lowest level in nearly nine years, an industry group said onWednesday. The National Association of Realtors said sales climbed 2.7 percent monthover month to an annual rate of 5.36 million units from a downwardly revised 5.22 millionpace.

Economists polled by Reuters had expected January sales to fall 2.1 percent to a5.24 million-unit pace from the previously reported 5.28 million units in December.Compared with January last year, sales were up 5.3 percent. The median home price fell3.7 percent from a year-ago to $158,800, the lowest since April 2002. President Barack Obamas numbers have plunged in all 50 states, accordingto a Gallup poll released Wednesday overall, the presidents average approval rating fellfrom 58 percent in 2009 to 47 percent in 2010.

The news came as the revolt against public unions started by Gov. Scott Walkerin Wisconsin showed signs of moving to more states, according to Time magazine. Timepointed out that while anti-union legislation differs in states across the country, theconflicts in places like Ohio, Indiana and Florida all pit GOP governors or theirstatehouse allies against entrenched labor movements. In Indiana, Democratic legislators, mirroring their Wisconsin counterparts' desperation,fled the state to deny Republican lawmakers the quorum necessary to proceed on a"right to work" bill, legislation that would prevent employers and unions from signingcontracts that require non-members to pay fees for representation. That has come with acost: The political weight of a single bill grounded Gov. Mitch Daniels' ambitious agenda,Time pointed out.

In Michigan, newly elected Republican Gov. Rick Snyder's budget calls for pensions tobe taxed, and he backs empowering emergency financial managers, brought in when aschool or city is foundering, to cut union contracts. But Snyder says he remainscommitted to bargaining with labor rather than forcing his position. "It's notconfrontational with the unions," he said. "It's about how we do collective bargaining toachieve a mutual outcome where we all benefit." Florida is already a "right to work state, but GOP state Sen. John Thrasher hasintroduced legislation to declaw unions there politically. The bill would bar labor groupsfrom using salary deductions for candidate donations or electioneering. Gov. Rick Scottproposed laying off 6,700 state workers in his first budget proposal but he has backed offa larger standoff with unions. "My belief is as long as people know what they're doing,collective bargaining is fine," he told Tallahassee's WFLA Radio on Tuesday.

In Ohio, Gov. John Kasich says hes willing to weather confrontation with unions overwhats known as Senate Bill 5. It would abolish collective-bargaining rights for 42,000state workers and scale back those of roughly 300,000 local government employees inOhio, including teachers, firefighters and police. Democrats lack the numbers in thestatehouse to delay action with a walkout. Republicans have an 8-4 majority on thatInsurance, Commerce and Labor Committee, not to mention a 23-10 majority in thesenate overall. SB5 is likely to face a full vote next week.

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These revolts, which are likely to spread to other states next week, dont bodewell for a president facing sinking polls. His approval rating fell in every state, accordingto a compilation of Gallups daily tracking polls.

Obamas national approval rating dropped to 47 percent in 2010 from 58 percentin 2009. The biggest decline came in Vermont, where his approval rating dived 15.2percentage points to 52.6 percent in 2010. The second-largest plunge came in Arizona

14.5 percentage points to 40.2 percent. The third-biggest decline came in Kentucky 14.2 percentage points to 38.6 percent. The fourth-largest decrease came in Missouri 14.1 percentage points to 41.4 percent.

Obamas approval rating sank by more than 10 points in more than 30 states.The 10 states with the highest ratings all traditionally lean blue. After D.C. and Hawaii,they are Maryland, New York, Delaware, Massachusetts, Rhode Island, California,Connecticut and Illinois, the Daily Caller pointed out.The 10 states with the lowest approval ratings are Wyoming, Idaho, West Virginia, Utah,Oklahoma, Alaska, Kentucky, Montana, Arkansas, and Kansas. The Indiana senate passed a sweeping immigration bill that echoesArizona's tougher measures on illegal immigrants and despite opposition from some of

the largest employers and business groups in the state.The measure, passed on Tuesday night by a vote of 31-18, would allow state

and local police to ask a person stopped for infractions like traffic violations for proof oflegal residency if the officer has a "reasonable suspicion" they may be in the countryillegally. Another provision would call for, with some exceptions, the use of English onlyin public meetings, on Web sites and in documents.

The bill still needs to be adopted by state's House of Representatives, whereopponents say they will now turn.

The vote "was a key step in the legislative process," the bill's author Sen. MikeDelph said in a statement, adding that the bill will "send a clear message that Indiana willno longer be a sanctuary for people who are in our state and country illegally because ofour federal government's failure to act on illegal immigration."

Greater Indianapolis Chamber of Commerce officials say the measure would have achilling effect on business, particularly convention business."It will have a negative economic impact on the state of Indiana," Chamber Public PolicyDirector Angela Smith-Jones said, adding that immigration issues should be handled onthe federal level. The Chamber feels it has a good chance of lobbying enough Housemembers to block the bill, Smith-Jones said.

Democratic lawmakers are fleeing Indiana in an attempt to block anti-unionlegislation, theIndianapolis Star reports. A source tells the paper that the Democratswill most likely enter Illinois, where fleeing Wisconsin senators are also ensconced aspart of a similar maneuver.TheWall Street Journal reports that protesters encouraged the departing Democrats:

Republicans arrived at the statehouse Tuesday morning to find no Democratspresent, as protesters applauding the walkout could be heard inside the chamber.The strategy is possible because Republicans make up 60 of 100 House seats. Withoutany Democrats present, Republicans lack a two-thirds majority needed for a quorum toact on the bill.

The Fort Wayne Journal Gazette reports that the proposed Indiana legislation"prohibits employees from being required to pay union dues or representation fees as acondition of employment."

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Large financial institutions continue to pose major risks to the U.S.economy, and must be broken up in order to avoid another meltdown, Kansas CityFederal Reserve President Thomas Hoenig said on Wednesday.Citing a number of shortcomings in the recently enacted U.S. financial reform legislation,Hoenig argued that many of the firms whose size helped drive the financial system intocrisis are now larger than ever.

He also argued that regulators still lack sufficient powers to rein in financialgiants, adding that the unfair advantages they glean from the implicit protection ofgovernment are self-reinforcing."We must break up the largest banks, and could do so by expanding the Volcker Ruleand significantly narrowing the scope of institutions that are now more powerful andmore of a threat to our capitalistic system than prior to the crisis," Hoenig told a meetingof the Women in Housing and Finance.

Hoenig called for "Glass Steagall-type" provisions that would no longer allowcommercial banks to engage in the riskier activities normally confined to the investmentsector. "We must make sure that large financial organizations are not in position to holdthe U.S. economy hostage.

SHORT NOTES Texas state workers may be forced to start paying part of their health-insurance premiums to close a projected $591 million funding gap in the next two years,the director of the governments pension system said.

The Republic of Texas weighs in: Bill Calls for Illegals to Be Dumped at Offices ofCongressmen says all illegal immigrants should be taken to the office of a US Senatoror Congressman and left there. Fewer Americans than forecast filed first-time claims to collect joblessbenefits last week, indicating companies are reducing the pace of firings as they grow

more confident in the economic outlook.Applications for unemployment insurance decreased 22,000 to 391,000 in the

week ended Feb. 19, the Labor Department said today. Claims have fallen in three ofthe past four weeks, pushing down the monthly average to the lowest level since July2008. The Bloomberg Consumer Comfort Index rose to the highest since April 2008,reflecting an improving jobs picture. As the carriers have tried to keep up with rapidly rising oil prices, they havealready increased their fares four times since the start of the year, compared with onlythree increases for all of 2010. The airlines have also raised some of their fees, imposedsummer peak- time surcharges and added hefty fuel surcharges on international flights. At todays prices, fuel accounts for about 40 percent of the industrys costs, up

from about 30 percent just last year. [But we were told commodities are only a fraction ofcorporate costs!] The price of jet fuel, which is now $2.99 a gallon, has soared 58percent since last summers lows of $1.89 a gallon. [This is beyond socialism; its despotic!] Obama Proposal Seeks Multibillion-Dollar Settlement of Loan-Servicing Cases The Obama administration is trying to push through a settlement over mortgage-servicing breakdowns that could force America's largest banks to pay for reductions inloan principal worth billions of dollars.

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Across Wisconsin, residents like Mr. Hahan have fumed in recent years astens of thousands of manufacturing jobs have vanished, and as some of the statesbest-known corporations have pressured workers to accept benefit cuts. Wisconsins financial problems are not as dire as those of many other states. But asimmering resentment over those lost jobs and lost benefits in private industry combined

with the states history of highly polarized politics may explain why Wisconsin, once apioneer in supporting organized labor, has set off a debate that is spreading to otherstates over public workers, unions and budget woes As pressure mounts on the White House to intervene to stop MoammarGadhafi's bloody crackdown in Libya, many commentators have been wondering whyBarack Obama has been cautious in his criticism of the dictator after the U.S. presidentso fervently supported the removal from office of U.S. ally Hosni Mubarak of Egypt. ButGadhafi has been tied to Rev. Jeremiah Wright, Obama's spiritual adviser for more than23 years. The Libyan dictator also has financed and strongly supported the Nation ofIslam and its leader, Louis Farrakhan. Obama has ties to Farrakhan and hiscontroversial group.

Confidence among U.S. consumers increased more than forecast inFebruary to the highest level in three years a drop in unemployment helped overcomeconcern over increasing food and fuel costs.

The Thomson Reuters/University of Michigan final sentiment index for the monthclimbed to 77.5 from 74.2 the prior month, a report today showed. Economists projectedthe gauge would rise to 75.5, according to the median forecast in a Bloomberg Newssurvey.

The Chicago Fed National Activity Index decreased to 0.16 in Januaryfrom +0.18 in December. Production-related indicators made a contribution of +0.05 tothe index in January, down from +0.45 in December. Total industrial production ticked

down 0.1 percent in January after rising 1.2 percent in December. However, the Institutefor Supply Managements Manufacturing Purchasing Managers Index increased to 60.8in January from 58.5 in December. [ISM is perverted by survivor bias.]GOLD, SILVER, PLATINUM AND PALADIUMPretium Resources Inc.: Snowfield Resources Increasehttp://finance.yahoo.com/news/Pretium-Resources-Inc-iw-1284700966.html?x=0&.v=1

On Wednesday spot gold rose $12.90 to $1,413.40, as April rose $9.40. Spotsilver rose $0.44 to $33.30, as March rose $0.64. Gold open interest went wild, up

14,285 contracts to 501,119. Silver OI fell 5,090 to 145,070. Once over $34.00 silvershould fly. The XAU rose 4.05 to 213.30 and the HUI gained 9.83 to 558.95.

The Dow fell 106 to 12,106, S&P fell 72 and Nasdaq fell 201 Dow points. Theyen rose .0030 to $.8248; the euro rose .0086 to $1.3744; the pound rose .0060 to$1.6202; the Swiss franc rose .0053 to $.9332 and the Canadian dollar rose .0016 to$1.0108. The USDX fell .38 to 77.38.

Oil rose $3.05 to $98.47, gas rose $0.12 to $2.72 and natural gas rose $0.03 to$4.06. Copper fell $0.03 to $4.33, platinum rose $0.70 to $1,787.00 and palladium fell$25.55 to $777.15. The CRB rose 3.45 to 347.81.

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Turmoil in North Africa and the Middle East and higher oil prices has brought anoverbought stock market to a correctional phase. There is also the possibility that therecould be problems in Saudi Arabia. For the US and Europe all this comes at adangerous juncture with major unemployment and historic fiscal and monetary problems.We are now seeing unrest and demonstrations in China, the US and Europe as well.The bond market has rallied intrepiding the problems as deflationary. We disagree and

you will see because it could be lower yields are the result of government manipulation.If this is a recovery it is a tepid one. There have been only two months of strong

non-farm payrolls and one quarter of real consumer spending growth about 2.5% in 18months. There also has been a 50% fall in savings the result of holiday spending.Recovery is another government and Fed mirage. The market rally has been easy toanticipate. It is a reflection of Fed market intervention in the Treasury-Agent markets.This activity allows institutions to zero in on the stock market and not have toaccommodate the Fed in the bond market. The market may have been going up but thebooks of new orders are off al most 25%, which means the economy should soften asthe year progresses.

Gas prices are up $0.50 a gallon over the past six months at a cost to theeconomy of $65 billion annualized. If unrest continues we could see $5.00 gas, which

would cut consumer spending $300 billion and thereby widening the depression.The situation in Europe is at the crossroads relating to a larger bailout package.

As we reported the CDU lost the first of 7 state elections in Chancellor Merkle's ownconstituency. It was a giant loss and the factor was Germans in the wealthy Hamburgregion do not want to bail out the six bankrupt members of the euro zone. They havehad it and want the Deutsch mark back. It is coming, we assure you. Merkle will have toback off on further financing. If she doesnt the CDU will be a dead duck for anotherdozen years and the Socialists will regain power. The events in the Middle East allowedthese events to shuffle into the background and that was why we have seen the MiddleEast and North Africa blow up. It was a diversion.

Retail sales are falling again after the holiday binge. Job creation is faltering andfinancial contraction is on the way. The states and municipalities have their fiscal knives

out to avoid bankruptcy. Some will go under, but most workers will accept lower pay andbenefits. Destroying the unions is counterproductive. There will be jobs lost and thatcertainly is anti-recovery.

Gains and profits by transnational conglomerates are sitting in the CaymanIslands and other such tax havens to the tune of almost $2 trillion. They want the samedeal as they got six years ago. Return the capital but not at a 35% tax rate, but at a 5-1/4% tax rate depriving the American taxpayer of $650 billion in needed revenue. TheTreasury and the Fed want the funds back to buy Treasuries and Agency bonds, and toprop up the stock market. The corporate officers want to send their shares higher sothey can cash in their options. More thievery for the criminal syndicate.

Forty percent of public sector debt has been incurred over the past two years andover the past five years 60% of the monetary base has been created and we are still

only going sideways. Any thinking person knows the game is over and there is noescape from what has been deliberately done to the US economy.

All the signs were there in the 4th quarter that GDP growth was beginning to slowdown. That slowdown will accelerate through the end of the year, and end up with 2% to2-1/4% growth. Present oil prices will cut 0.5% of GDP growth and $5.00 gas will cut1.5% off GDP leaving % to 3/4% growth at a price of $2.5 trillion.

Irish elections are looming and the deals made by the previous administration willbe scrapped. The Irish will not bail out the bankers. They may default and leave the euro

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BY JEAN EAGLESHAM AND VICTORIA MCGRANEThe Commodity FuturesTrading Commission has halted development of a technology program used to flagsuspicious trading because of an $11 million cut in its technology budget, increasingrancor within the small agency about how it should spend its money.The funding shortfallis forcing Republicans and Democrats in the CFTC to advocate competing visions of thefuture of the agency, established in 1974 to police trading of oil, natural gas, silver and

other commodities in the $40 trillion futures market.Scott O'Malia, a Republicancommissioner, favors big investments in technology. Democrats, led by CFTC chairmanGary Gensler, would rather ...http://online.wsj.com/article/SB10001424052748 703905404576164774042487098.html

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Return of the Robber BaronsAfter the Civil War, the U.S. saw the rise of the robber barons wealthy industrialists likeJohn D. Rockefeller (Standard Oil), J.P. Morgan (finance), Andrew Carnegie (steel), andCornelius Vanderbilt (railroads). These robber barons devised schemes whereby theirseemingly disparate corporations could combine to gain control of markets, freeze outcompetition, create monopolies, and then raise prices, profits and power to exorbitantlevels. These objectives were achieved in a number of industries in part because therobber barons were able to bribe congressman, senators and even presidents enactlaws that favored monopolies.The word fascism (as later popularized by Mussolini and the Nazis) did not exist in thelate 1800s. If it had, that combination of rich, corporate robber barons and Washingtonpoliticians could have been justly called American fascism.The combinations of wealthy, powerful corporations came to be called trusts. Thesetrust schemes created great wealth and power for the robber barons, but also createdgreat poverty, jealousy and antagonism among the majority of the Americas workingpeople. The peoples adverse reaction to trusts eventually inspired anti-trust lawsthat restricted the robber barons ability to employ trusts to create monopolies. TheSherman Anti-Trust Act was passed in A.D. 1890 but was not significantly enforced untilthe early 20th century.In A.D. 1904, John Moody wrote The Truth About Trusts. That book was intended toappear objective but, in fact, extolled and even celebrated the necessity of suchtrusts. Mr. Moodys book began with a pair of quotes under the heading:A Standard Oil View of the Trust Movement

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To stop cooperation of individuals and aggregation of capital would be to arrest thewheels of progress to stay the march of civilization to decree immobility of intellect anddegradation of humanity. You might as well endeavor to stay the formation of theclouds, the falling of the rains, or the flowing of the streams, as to attempt by any meansor in any manner to prevent organization of industry, association of persons, and theaggregation of capital to any extent that the ever-growing trade of the world may

demand."At the time, that description of trusts seemed positive. The cooperation of individuals,wheels of progress, and march of civilization who could be against that?Moreover, the principles behind monopolies were presented as irresistible forces thatcould not be denied or resisted. Sure, there might be some problems, but like death andtaxes, nothing seemed so sure as more trust-monopolies.But note the two references to the aggregation of capital and one reference to trade ofthe world. The monopolists were apparently motivated by the love of money(aggregation of capital) and dreamed of one day achieving and controlling somethinglike global free trade.The books second quote was,

If there is one thing that history teaches plainly it is that abuses are soonest reduced toa minimum by permitting, not by restricting, individual liberty. Give all equalopportunities in business will regulate itself honorable lines. I do not prophecy an era ofperfection. The golden age of the future is a mirage as the golden age of the path is amyth. * * * But men whose integrity is such as to permit them to be entrusted with themanagement of large capital, whose intellectual grasp of principles and details is suchas to command with their products the markets of the world, are those who will soonestrealize that the policy which succeeds is that which accords fair treatment of all, be theycompetitors, consumers, or employees; that there is nothing so sharp or so shrewd ashonor; that nothing wins like justice; that the well-being of one depends on the well-beingof all."S. C. T. Dodd, Solicitor for the Standard Oil Company.

Lawyer Dodd made a nice speech. Most of it was true. It mightve work well in a closingargument to a jury. He implicitly admitted that the robber barons were sometimesabusivebut claimed that the solution to these abuses was not more governmentregulation or anti-trust legislation, but rather an open and free market which permittedrather than restricted individual liberty.The problem with Mr. Dodds speech is that while his employer (Standard Oil) and therest of the robber barons were indeed dedicated to their own individual libertytheywere also determined to use theirliberty to create and exploit monopolies which wouldeffectively restrict the liberty of everyone else.While the robber barons might say nothing wins like justice, they truly believed thatnothing wins (for us) like monopolies.

The robber barons used trusts to create the monopolies they needed to maximizetheir profits and power.According to John Moody, circa A.D. 1900, there were competing definitions for trustsbut the best definition was provided by Standard Oil solicitor Dodd:The term Trust in its more confined sense embraces only a peculiar form of businessassociation effected by stockholders of different corporations transferring their stocks to

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trustees. The Standard Oil Trust was formed in this way, and originated the same Trustas applied to associations. * * *The term Trust, although derived as stated, has (now) obtained a wider signification,and embraces every act, agreement, or combination of persons or capital believed to bedone, made, or formed with the intent, power or tendency to monopolize business, to

restrain or interfere with competitive trade, or to fix, influence, or increase the prices of

commodities. [Underlined highlights added.]As described in the first paragraph, the trust mechanism was fairly simple: majorstockholders of several separate corporations would transfer their stock and controloftheir various corporations to a group of trustees. The trustees would then exerciseinfluence or control over the severalcorporations (that would normally be independentfrom each other) so as to cause those separate corporations to act in concertto defeatcompetitors outside the trust.For example, suppose the trust held stock from Carnegie Steel and a major railroad.The trustees might then establish a very low charge for hauling products produced byCarnegie Steel, and a high rate to transport steel produced by other steel manufacturers.

The net result would be conditions where the other steel manufacturerseven if theyproduced a less expensive steel than Carnegiecould nevertheless not match thedeliveredprice of Carnegie Steel. Business would flow to Carnegie; his competitorswould tend towards bankruptcy.The definition of trust in Mr. Dodds second paragraph is more subtle and complexsince it described the trusts intangible purpose: tomonopolize business so as tocontrol prices so as to generate exorbitant profits. Despite public relations statements tothe contrary, these trusts were criminal enterprisesracketeering carried out at thehighest economic levels of society. For the balance of this article, Ill argue that, today, Americans are once again subject

to the kind of robber barons and trusts that exploited the people over a century ago.Todays trusts operate at not only the highest economic levels of our society, but alsothe highest political levels. Under todays trusts, the object is not simply to controlprices, maximize profits and exploit laborers, but to control the entire US and even globaleconomies so as to ultimately bypass the Constitution to arbitrarily rule over, and exploit,the people. In the 1990s, a friend of mine had access to the Texas Department of Parks andWildlife. He was surprised to discoverrows of filing cabinets filled with contracts thatlinked that Department to other governmental agencies. For example the relationshipbetween the Department of Parks and Wildlife and the Department of Public Safety(state police) seemed to be controlled by privatecontracts rather than by public law. At

the time, the reason for these contractual relationships was a mystery.Today, thanks to Manta.com, these contractual relations seem more understandable,though still fantastic. Manta.com lists over 63 million private corporations based on datais supplied by Dun & Bradstreet. That data suggests that most or perhaps even all ofmodern governmental departments and agencies may be private corporations ratherthan true branches of constitutional government.

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For example, if you enter Texas Department of Parks and Wildlife into the Manta.comsearch engine, youll find that there are 397 U.S. companies matching TexasDepartment of Parks and Wildlife. The second company on that list is:Texas Department of Parks and Wildlife (Choke Canyon State Park) Branch

State Park, Three Rivers TXLand, Mineral, Wildlife, and Forest Conservation

Texas Department Of Parks And Wildlife in Three Rivers, TX is a private companycategorized under Land, Mineral, and Wildlife Conservation. . . . Companies like TexasDepartment Of Parks And Wildlife usually offer: Wildlife Conservation Services, UrbanLand Management, Petroleum Land Management, Professional Land Management andLand Management. [Emphasis added.]If youd like more comprehensive information, Manta.com also sells seven separateDun & Bradstreet Reports on this particular private company ranging in price from$13.00 to $210.00.The reason therere so many (397) private companies identified under TexasDepartment of Parks and Wildlife may be that each separate facility or park is aseparate corporation. If so, the Texas Department of Parks and Wildlife is not a single,

monolithic agency of constitutional government under public lawso much as aconglomerate of several hundred private corporations united by contracts.Similarly, if you enter Texas Department of Public Safety into the Manta.com searchengine, youll find 1,113 U.S. companies matching that search criteria. Number 1 onthe list is:Texas Department of Public Safety (Texas Rangers) Branch6502 S New Braunfels Avenue, San Antonio, TXPolice ProtectionTexas Department Of Public Safety in San Antonio, TX is a private companycategorized under Marshals' Office, Police. . . . Companies like Texas DepartmentOf Public Safety usually offer: Law Enforcement Labor Services, Law Enforcement

Psychological Services, Law Enforcement Support Services, Law EnforcementTraining Services and Law Enforcement Services. [Emphasis added.]Again, seven Dun & Bradstreet Reports are available (prices $13 to $210 each).These fairly expensive reports are pretty good evidence that these listings are notdata entry errors. If Dun & Bradstreet sells a $120 D&B Business InformationReport on each particular branch of the Texas Department of Public Safety,thats pretty good evidence that that each particular branch is truly a privatecompany.Again, it appears that the Texas government may be a conglomerate of thousandsof private corporations that are linked together by contracts rather than law.The problem of private companies masquerading as if they were true

departments of constitutional government is not confined to Texas. If you enterThe White House into the Manta.com search engine, youll find over 13,000private companies that use that nameand most are legitimate privatecompanies. But number 8 on the list is located at 1600 Pennsylvania Ave. NW,Washington DCthe same place where President Obama works. The WhiteHouse appears to be a private company.Try US House of Representatives. Youll get a list of 1,383 US companies.Heres the first on the list:

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US House of Representative (Representative Velazquez) Branch5007 108th Street, Flushing NYLegislative BodiesUS House of Representative in Flushing, NY is a private company categorizedunder Government Offices-Us. . . .

Apparently, Congressman Velazquezs NY office is a private company. Whetherthe Congressman represents the people in his district or that private company isunclear.But its increasingly clear that, like Dorothy when her house fell on the witch,were not in Kansas anymore.For even more fun, enter US Supreme Court, US Marine Corps, Internal RevenueService, of even United Nations into the Manta.com search engine and see whathappens.The search possibilities are almost endless. The results, seemingly, are always thesame: According to Dun & Bradstreet, most or all of the agencies that currently pass forgovernment are actually private companies.In combination, these private companies act in concert to appearto be the government

but may, instead, actually be nothing more than a conglomerate of corporationsdesigned to defraud the American people out of taxes, fees, fines and property withoutconstitutional authority.These combinations are apparently linked by contracts (rather than public law). In thisregard, the mechanism under which these governmental corporations cooperateseems eerily similar to the trust-monopolies run by robber barons of the 1890s.Todays governmental trusts would seem to have much the same purpose as the1890s trusts: tomonopolize business (commerce) so as to control prices so as togenerate exorbitant profits and arbitrarily rule the American people. Just as the 1890trusts were criminal enterprisesracketeering carried out at the highest economiclevels

of societytodays trusts may also be criminal enterprises carried out at the highestpoliticallevels of society. Todays trusts arent limited to governmentthey also include the natural and/orcorporate descendants of some of the very same trusts that dominated American in the1890s; the Rockefellers and JP Morgan come to mind.One of the identifying features of the private entities that are part of the modern trustsmay be that theyre deemed to be too big to fail. During the 2008-2009 financial crisis,JP Morgan-Chase (and other Wall Street financiers) were described by The WhiteHouse Inc as too big to fail and given billions of taxpayer dollars. But were therecipients of this money really too big or were they mere too connected to the trust

thats running this country as an economy (for-profit business) rather than a nationunder the Constitution?If our modern government is a conglomerate of private companies, should we besurprised that the Associated Press recently reported that a Federal Judge (operatingunder the US Supreme Courta private company according to D&B) Tosses ReligiousFreedom Suit Against Democrats Health Care Law? Doesnt if follow that the privatecompanies (like courts) that are part of todays governmental trust would rule againstthe private people who are not parties to that trust?

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How about the recent report by CBS News that Supreme Court rejects vaccinelawsuit? Should we be surprised if todays governmental trust protected trust insidersagainst lawsuits by trust outsiders (the People)?The problems with todays governmental trust-conglomerate have grown so great thateven some apparent insiders have advocated that the trust take a lower profile.

According to Bloomberg News, Federal Reserve Bank of Kansas City President ThomasHoenig recently said,I am convinced that the existence of too-big-to-fail financial institutions poses thegreatest risk to the U.S. economy. They must be broken up. We must not alloworganizations operating under the safety net to pursue high-risk activities and we cannotlet large organizations put our financial system at risk.I agree with Honeig that the too big to fail financial institutions pose a threatbut I seethe threat to the nation and our individually-held rights rather than to the economy. Istrongly suspect that Americas biggest threat may be a modern system of governmentaltrusts and monopolies virtually identical to the robber barons trusts, monopolies and

fascism first seen in this country over a century ago.Discount Gold & Silver Trading Co. provides all forms of precious metals including gold,silver platinum and palladium whether you are buying or selling. Our inventory includesbut not limited to the American Gold, Silver, Platinum Eagle and numismatic productsincluding rare, investment and circulated coins. Silver dollars, silver bars, rounds are onhand for the silver investor. Foreign gold is also available. Call for information regardingyour precious metal gold and silver IRA. 1 800 375 4188COMMODITIES

DOE reports crude oil inventories rose 800,000 barrels, distillates fell 1.3 m/b and

gasoline fell 2.8 m/b.

EUROPE Greece's labor unions and professional groups have called for a generalstrike on Wednesday that will likely disrupt flights, close stores, and cripple services inthe crisis-hit country. This year's first major labor protest comes as Prime MinisterGeorge Papandreou's Socialist government faces international pressure to make deeperand more lasting cuts after Greece's debt-crippled economy was rescued frombankruptcy by the European Union and the International Monetary Fund. State hospitaldoctors, ambulance drivers, pharmacists, lawyers and tax collectors will join school

teachers, journalists and thousands of small businesses in what is a shift in protests toinclude more middle-class groups. Unions are angry at ongoing austerity measures putin place by the Socialist government in exchange for a $110 billion bailout loan packagefrom European countries and the IMF. Stathis Anestis, deputy leader of Greece's largestunion, the GSEE, said workers should not be asked to make more sacrifices during athird straight year of recession.

"The measures forced on us by the agreement with our lenders are harsh andunfair we are facing long-term austerity with high unemployment and destabilizing oursocial structure," Anestis said. "What is increasing is the level of anger and desperation

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if these harsh policies continue, so will we." Anestis said around 60 demonstrations werebeing planned in cities and towns across Greece, while the GSEE was in talks withEuropean labor unions to try and co-ordinate future strikes with other EU countries.Earlier this month, international debt monitors said Greece needed a "significantacceleration of long-term reforms to avoid missing its economic targets. It also urgedthe Socialist government to embark on a $50 billion privatization programmed to pay for

some of its mounting national debt that is set to exceed 150 per cent of the GDP thisyear. The IMF has said some of the frequent demonstrations against the Greekgovernment's reforms were being carried out by groups angry at losing their "unfairadvantages and privileges."

European confidence in the economic outlook improved more thaneconomists forecast to the highest in 3 1/2 years in February, led by surging optimismin Germany. An index of executive and consumer sentiment in the euro region advancedto 107.8 from 106.8 in January, the European Commission in Brussels said today. Thatsthe highest since August 2007. Economists had forecast a February reading of 106.8,the median of 28 estimates in a Bloomberg survey showed. A gauge of Germaneconomic confidence rose to 116.8 from 115.5.

ENGLAND

Well there we have it. 2010 was another awful year for building new privatehomes in England with fewer than 81,000 completed, compared with almost 154,000 inthe peak year of 2007.

And look closer into the latest official house building figures and we see than inmany of the English regions, particularly in the North, the level of private house buildingis now running well below half of what it was in 2007.When you add in the homes built for the social sector there were 102,830 completed

new homes in the year.If you are prepared to search for historic stats, there are numbers showing that

this is roughly the rate at which homes were being built in the final decade of QueenVictorias reign and in fact we were building more homes in the mid 1870s when thepopulation was half the size. So this is not an impressive result.What makes the figures more disturbing is that when we look at the starts figures we seea worrying fall away in the final quarter. Youd be hard pushed to put all that down to thesnow. Indeed I was always a bit suspicious about the surge in starts in the secondquarter of last year believing that the rise might well be partly down to restocking andpartly down to house builders protecting existing planning consents before they lapsed. U.K. consumer confidence stayed close to the lowest since March 2009 this

month as Britons became more pessimistic about the sustainability of the economicrecovery, a report by GfK NOP Ltd. showed.

The index of sentiment rose to minus 28 from minus 29 January, when it plungedthe most since 1994, the research group said in a statement in London today. Gauges ofconsumers perception of the economy in the past 12 months and over the next yearboth declined.

The economy shrank more than previously estimated in the fourth quarter, datashowed today. Jobless claims rose in January, underlining the fragility of the recovery asthe government prepares to cut 330,000 jobs as part of its fiscal squeeze. At the same

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time, inflation has quickened to the fastest pace in more than two years, squeezinghouseholds.

Overall confidence remains low, GfK Social Research Managing Director NickMoon said in the statement. While the government will be relieved that consumerconfidence has leveled out, such a small increase indicates that last months astonishingfigures were not an aberration.

Recent surveys suggest the economy may have returned to growth in the first quarter.Gauges of services and manufacturing rose in January, while retail sales rose almostfour times as much as economists forecast in January.

GfKs gauge on the climate for making major purchases rose 4 points to minus25 this month, while a measure of Britons views of their personal finances over the next12 months rose 2 points to minus 10.The GDP data showed that the economy contracted 0.6 percent in the three monthsthrough December, more than the 0.5 percent drop estimated on Jan. 25, the Office forNational Statistics said in London today.MEXICO

President Felipe Caldern met with company executives Walmart, who informed

him that in 2011 invested in Mexico more than 14 billion pesos, which will generate morethan 20 thousand direct jobs and about 50 thousand indirect jobs.The Federal Executive noted that this represents a sign 'strong, constant and caring'confidence in the country and is a bet on the strength of the domestic market reflectssigns of recovery.

But he acknowledged that there need to grow the domestic market to its fullpotential, because if I did the economic growth rate stood at 5.5 percent in 2010, 'wouldbe far greater. "

He explained that the signs of recovery in the domestic market are perceived, forexample, the Consumer Confidence Index in January stood almost 93 points, which is its

highest since May 2008, before the global economic crisis .Likewise, the subindex that measures the ability to buy durable consumer goods, fromrefrigerators to automobiles, grew 36 percent, which is also the highest since September2008.

Accompanied by Minister of Economy, Bruno Ferrari, and the CEO of Walmartde Mexico, Scot Rank, President Calderon insisted that the recovery of consumerconfidence and sales at department stores and self are signs of who is recoveringdomestic market.It is also clear that the external sector of the economy is still very strong, for the pastyear saw the highest volume of exports from Mexico on record and accounting for nearly300 billion dollars.Caldern said the decision of the company 'put him' 14 billion dollars to a country in a

year respond to the potential that is seeing it, 'and how good it looks like this. It isimportant that the Mexicans see it like that. "

The President stated that this investment means that Walmart has invested inMexico, an amount close to 58 billion pesos and 70 000 direct jobs created between2007 and 2011.He recalled that Mexico is called to be the fifth or sixth largest economy in the world bythe middle of this century, so ay not only in terms of manufacturing competitiveness andexports, but also in value and growth of the domestic market.

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INDIA

Thousands of people have gathered in the Indian capital Delhi , to take partin a rally to protest against rising food prices and unemployment.A steady stream of protesters, carrying red flags, has been marching through the streetsof central Delhi since early morning.

The rally has led to massive traffic jams in the city.Trade unions who have called the rally say nearly 40,000 people will attend a meeting atthe Ramlila grounds. Thousands will then march to parliament, they say.Security is tight across the city with thousands of policemen deployed at the rally groundand along the route of the march.

The protest has been organised by major trade unions, including the All IndiaTrade Union Congress (AITUC) and the Centre for Industrial Trade Union (CITU).The Indian National Trade Union Congress (INTUC) - which is backed by the governingCongress party - is also supporting the strike saying it wants to remind the governmentabout its commitments to the poor.A CITU statement said workers from 19 states, thousands of women among them, were

participating in the march. Food inflation has been consistently rising in India, pushing uphousehold budgets.

The cost of pulses, milk, wheat, rice and vegetables has gone up sharply.Finance Minister Pranab Mukherjee has said food prices are an "area of concern".

Bank of India has become the first Indian bank to offer trade settlementfacility between the rupee and the Chinese RMB from Hong Kong. This followsintense persuasion by the China Banking Regulatory Commission, which is trying to gainacceptance of the RMB as an international currency.

"We are the first Indian bank to offer real-time settlement facility in RMB to Indianexporters and importers. It will be save a lot of time because settlement in US dollarsusually takes three working days," Arun Kumar Arora, BoI's chief executive in Hong

Kong, said during a recent visit to meeting regulators in Beijing.Indian buyers are at present making payments in US dollars, and they often have

to convert rupee into the US currency for the purpose. The US dollars will no more bethe intermediary currency as the BOI is offering direct settlement between the rupee andthe Chinese money.

Chinese exporters want their money in the local currency, which is regarded asmore stable compared to the US dollar. They are also in a position to have their waybecause Indian buyers do not have an alternative source of low-cost goods, sourcessaid. The process has been facilitated by a recent memorandum of understandingsigned between the Reserve Bank of India and the CBRC to enhance bankingrelationship between the two giant neighbors.

BoI has opened a RMB with the Bank of China, which will provide real time

settlement with buyers and sellers across all provinces of China. The move is part of acampaign by the Hong Kong Monetary Authority, which has persuaded 100 foreignbanks to enter into arrangements with Chinese banks for trade settlement in RMB."We will sell RMB against the US dollar, and companies can buy as much as they wantprovided they have the right papers. For individuals, the limit of 20,000 RMB a day,"Arora said. He expects settlements for an amount ranging between 200 million and 300million in the first year.

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Hong Kong is the only offshore market for the Chinese currency. The past yearsaw $400 billion of Chinese yuan being traded in Hong Kong against other currencies.BoI is also awaiting permission from Chinese regulators to establish a branch in Beijing,where it has been running a representative office for the past four years. It has recentlysigned a MoU with the CBRC on converting the representative office into a branch. Thebank has been running a branch in the boom city of Shenzhen for the past four years.

The Shenzhen branch will also be involved in providing additional support for the tradesettlement business.JAPAN

Japans deflation eased to the slowest pace in 21 months in January asincreases in global energy and food prices prompted companies to pass on costs toshoppers.

Consumer prices excluding fresh food declined 0.2 percent from a year earlier,the statistics bureau said today in Tokyo. That compared with a median 0.3 percent droppredicted by 28 economists surveyed by Bloomberg News. Price drops eased for a

fourth consecutive month.Japanese companies including coffee roaster Key Coffee Inc. have started to

raise prices in response to higher raw material costs, helping moderate deflation. Still,the Bank of Japan will probably judge that higher costs due to commodities may damagethe economy and dont justify ending its easy monetary policy, Daiwa Institute ofResearch said.

Price increases caused by costlier commodities will only have a negative effecton the economy, eroding corporate profits and discouraging consumption, said HiroshiWatanabe, a senior economist at DIR in Tokyo. The Bank of Japan wont considertightening unless prices resume rising for an appropriate reason, which is the economysrecovery.

AFRICA

There has been about one farm attack per day in SA since President JacobZumas state of the nation address on February 10, the Christian Democratic Partysaid. The latest farm murder that of Alberto Cota near Stellenbosch brings the tally to atleast five farm murders since President Jacob Zuma claimed a reduction in certaincategories of crime during his state of the nation address, said CDP leader ReverendTheunis Botha.

Some farm attacks have taken place in the Free State and Mpumalanga, in onecase the victim is in a critical condition, he said referring to the attack on a Free Statefarmer by three men this morning in which the farmer was shot in the head and his

bakkie stolen.Periodic condemnations by the ANC simply do not cut it especially when the

ANC insists on its right to sing songs like kill the farmer.Potential attackers must be made to understand quite clearly that farmers are not freegame and that the government is serious in rooting out the problem, he said.A farmer was attacked on Mara Farm, between Frankfort and Tweeling, at about 11am.Police were unsure of the exact details of the incident but the farmer was shot in thehead and the three attackers fled with his bakkie.

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There have been no arrests and police are investigating a case of attempted murder androbbery.MIDDLE EAST

The Swiss government on Wednesday ordered the freezing of any funds that the

dictator Muammar Gaddafi and his family could have on the Swiss banking system.The decision takes effect immediately and will run for three years, said in a

statement the Ministry of Foreign Affairs.He explained that this measure will prevent any risk of diversion of public funds that canbe found in Libyan Swiss territory.

This is the third freezing of funds in Switzerland in recent weeks in connectionwith dictators in the Arab world, following similar measures taken after the fall of HosniMubarak in Egypt and Zine El-Abidine Ben Ali in Tunis.In both cases the freezing of bank accounts directly affected them and their families andtheir government officials who held key positions.

Both former presidents have funds in Switzerland and in the case of Ben Ali ofthe Swiss authorities have confirmed already found tens of millions of dollars in Swiss

accounts, which must be added real estate.Mubarak regarding the suspected existence of thousands of dollars in bank accounts.In addition, the Swiss Foreign Ministry paid tribute to "people who risk their lives to claimtheir democratic rights," while expressing his condolences to the families of the manyvictims of violence against protesters demanding the departure Gaddafi's power.HEALTH

In a decision handed down yesterday, the United States Supreme Courthas sold out the American people, violated the Constitution and made a mockeryof the rule of law in America by denying parents of a vaccine-damaged child their right toseek redress through the court system.

"In a 6-2 decision, the U.S. Supreme Court said that parents of vaccine damagedchildren have no right to sue vaccine manufacturers even if vaccines kill their children!"This now confirms that vaccine companies have blanket immunity from all lawsuits inthe USA, and parents can no longer use the law to seek compensation for their childrenwho are damaged by vaccines."The U.S. government, in essence, has legalized medical violence against childrenCON: 'For the greater good, one death is justified.'

"Justice Antonin Scalia said the high court majority agreed with Congress thatthese side effects were "unavoidable" when a vaccine is given to millions of children."By a 6-2 vote, the court upheld a federal law that offers compensation to these victimsbut closes the courthouse door to lawsuits."HEALTH- Herbalist Wendy Wilson

DIETS R.I.P.Spring is just about here and many think about new bathing suits and light or frilly newclothes. Shopping for clothes will remind us of the extra few pounds we want to get ridof. What happens when you have at least 10% of Americans eating the wrong foods?

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Bad habits can influence others and you end up with 66% of the entire US population asoverweight or clinically obese. Before the fad diet buries you, you need to burry the diet.The problem with being overweight is how you eat and what you eat. Be like Spock andmind-meld that thought. When you change your thinking you will change your behavior,otherwise frustration and denial are part of your future because diets have a 5% successrate over a five-year period and 3% gain allthe weight back.

THE CHALLENGESome of us feel that it is easier to tell a mountain to move then it is to lose weight andkeep it off. Statistically only 5 people out of 100 that diet succeed at keeping the weightoff. TV is full of weight loss shows in which the participants nearly always gain the weightback within the first twelve months. If you have acid reflux or heartburn it seems moredifficult to drop the weight and it is the extra weight around the middle that contributes tothe reflux and heartburn. If you suffer from these symptoms, studies show that theslightest weight loss improves symptoms of reflux and heartburn by 10%. On the flipside, moderate weight gain on normal-weight individuals can cause reflux symptoms.Adding 10-20 pounds around the abdomen puts pressure on the stomach and pushes

food up to the top of the stomach.QUICK WEIGHT LOSSEveryone likes instant gratification thats why girdles were popular. Today people havetoo many pounds for the girdle and they are not comfy to wear. Now it is the full-bodyundergarment made of bamboo fibers. I hear bamboo is as sturdy as a human bone. Itwould have to be to reduce someones appearance by 10-20 pounds. The quick weightloss diets are popular but not healthy. They dont promote healthy eating andmetabolically they make it more difficult for the body to shed weight in the future. Onceyou gain the weight back the bodys famine feature takes over and resists the body fromshedding the weight again. Why? Because you reduced your nutritional stores in the

body on the quick-fix weight loss and the body feels threatened. Now it is going to storefat and you cant figure out why the diet isnt working. Also, dropping weight too fast isntsmart. It will reduce the muscle mass and protein in the body and reduce the caloriesyou can burn. Your body will also have difficulty maintaining some basic body functions.Also when you begin to pick up weight again it will come back on the body as fat.Therefore, diets and diet products can do more harm than good.HIGH ON PROTEIN, LOW ON CARBSThe high protein, low carbohydrate diets are the main fad diet of our century. Are thesediets healthy and do they work to help you keep the weight off? Our bodies like proteinfor fuel and this seems like a good idea as a diet. When our body converts the protein it

produces nitrogen. The body must remove the nitrogen from the body through the urine.Too much nitrogen in the blood is toxic. Therefore, these high protein diets soundhealthy but th