[A-List] fwd from Anne Williamson

[Mark Jones]

To: "Mark Jones" <mark.jones at tiscali.co.uk>
Subject: Red Meat


Here's fodder for the list from a red meat "capitalist."  I am interested 
that few
have noticed the criminal, thoroughly fascist mischief afoot in Congress, 
or have yet to
comment, at least .  Of course I am out-of-step with all hereone as my view 
is that capitalism has
not existed in the US or the developed world since Pres. McKinley.  Yes, you
read that right - McKinley!  What has been being built since the US set off to
"Christianize" the Phillipines is most definitely NOT capitalism, but 
fascism.
Now we are suffering from a global fascism's attempt to 
institutionalize....well,
100% will disagree with me, but a close reading of this very typical, poorly-
organized, always breathless knock-out report will give each of you some food
for thought if not new soil to plough.  All best, -A.

PS BTW, Chapman has close ties to the intelligence community, and decades ago
broke with the CIA to become the still-standing maverick whose thoughts you
read below.  In my own experience with his reports, I can say he has called
some magnificent scoops months before they were on anyone's radar screen.

PPS  I would suggest none of you are giving enough thought to the import of Bob
Rubin's two closed-door appearances before Congress post-Sept 11.  And no
Mr. O'Neil in sight!  Why do you think that happened?


10/20 Bob Chapman - THE INTERNATIONAL FORECASTER 20, October , 2001 (#2)





THE INTERNATIONAL FORECASTER 20, October , 2001 (#2)

An international financial, economic, political and social commentary.

Published and Edited by: Bob Chapman Vol. 5- No. 10-2

Phone & Fax: 941 639 4756

E-mail: bif4653 at home.com

UP-COMING CONFERENCES

CHICAGO NATURAL RESOURCE/TECHNOLOGY CONFERENCE - November 17, 2001

Rolling Meadows Holiday Inn. Speakers: Joseph Granville, Editor "Granville 
Market Letter";

Bob Chapman, Editor, "The International Forecaster"; Clyde Harrison, 
Manager, Jim Rogers Index Fund;

David Tice, Portfolio Manager, Prudent Bear Fund; David Coffin, Editor, 
Hard Rock Analyst.

Reservations required call Barbara Allen at 1-800-285-1700 or email 
ballen at danoyes.com

or rradez at danoyes.com - the Conference is FREE.


SAN FRANCISCO: The New Opportunities Conference in San Francisco on 
November 25th and 26th, 2001 at the San Francisco Marriott is the largest 
and most well attended natural resource investment conference of its kind 
in the world today. Admission is complimentary to all Fund-Managers, 
Industry Analysts, Brokers, and Individual Investors and attendance is at 
an all time high already this year. Top Line-up of more than 75 speakers 
including Economists, Analysts, Newsletter Editors and more with Mr. Bob 
Chapman and the International Forecaster. Check the website at 
www.iiconf.com <http://www.iiconf.com>.  Call for reservations at 
1-800-282-7469. Mr. Chapman will be speaking and have a workshop on Sunday, 
Nov. 25th.

Please note: We only print excerpts from the IF which publishes over 50 
pages of commentary weekly. If you’d like a free introductory copy please 
access: bif4653 at home.com


US MARKETS

Americans are finally catching on. There is something seriously wrong with 
the economy. As we said before they are frozen in the headlights never 
having had a bad day in their life. Uncertainty has paralyzed the country 
and rightly so. If the public realized how really serious the situation is 
they would probably go into shock. Over the next few years they’ll realize 
they were victims of a failed experiment in monetary debauchery, brought 
down upon them deliberately. The coming recession/depression will be a 
clarion wake-up call, a bitter example of our elitist leadership. The media 
is telling you this economic discomfort will last for six months. Don’t 
believe them. It will last for years. Unemployment will go over 7% next 
year, and could easily return to the 10.8% we experienced in 1982 in 2003. 
This Christmas sales will drop to levels not seen since 1953 and what will 
be sold, will be sold at 25-80% discounts. Get ready to be laid off and go 
through thousands of résumés before getting a nibble for a job at a salary 
much lower than your last one. Tax rebates, lower interest rates and 
government spending will not solve the problem. The excesses still have to 
be purged from the economy, namely in real estate, debt and in derivatives. 
The FED funds rate is already 2.5%, the lowest since 1962 and it has 
produced zero results. Doesn’t this give you a message? CD’s pay 4 1/4% and 
money market funds pay 2 3/4%. These low rates are hurting the retired and 
others are afraid to take advantage of them for fear of being jobless and 
not being able to make payments on a purchase. Fear induces caution. Fear 
and caution should have been on people’s minds 18 months ago when we began 
to write about the end of a false bull market, the inevitability of an 
untoward event, such as a terrorist act or a contrived war probably in the 
Middle East. We have been shouting get out of debt, be in cash, buy gold, 
silver, platinum coins and stocks and we still are doing so. This is just 
the beginning of a miserable period of adjustment.

It is certainly not too late to act. You can still square away your life in 
the next year, so you can come out of this debacle with something left of 
your assets. Those in hard assets could make fortunes. That, of course, is 
dependent on how bad things get. You’ll always be able to spend gold and 
silver coins. After an initial drop in retail sales of 40% after the 
tragedy, sales are still off 10%. We expect travel to remain off some 30% 
and deteriorate further as time goes on. Don’t believe our banking system 
is healthy, it isn’t. Excess funds you don’t want to commit to mining 
shares should be in Treasury paper. If you use a fund make sure they do not 
use derivatives. Have cash on hand in all denominations and above all be 
well armed and lay extra food away. Have a source of good water. These are 
the facts. This situation didn’t develop in the last two years; it’s the 
result of 50 years of fiscal and monetary mismanagement. The financial 
system is systemically shot and an alternate has to be found. The only 
alternative is a gold exchange standard and it will come. Your first 
question is, how did this happen and who is responsible? The answer is the 
bankers, Wall Street, other elitist businessmen and the media. $200 billion 
in business loans are about to go into default and the consumer debt 
situation is even worse. Within a year and one half Fannie Mae and Freddie 
Mac will be taken over by the government in insolvency. That means you get 
to pay for all those no-down loans that should have never been made in the 
first place. The country has stalled. It is in a freeze, and until the 
excesses are purged things will only get worse. Please protect yourselves. 
We are only the messengers.

All the "experts" and the media now tell us there should be a permanent tax 
break for business investment, although it is believed, even by them, that 
the effect would be modest. Why would business invest with demand falling, 
inventories still high and capacity utilization stuck in the mud? The 
reserves for social security, pensions, Medicare and Medicaid have been 
looted. Now we are told tax cuts for the very productive middle and 
upper-class should be rolled back and that we should give money to lower 
income families who will spend it immediately to indulge themselves and 
have more stupid children. Budget increases will be far higher then we are 
being told. Next it’s bread and circuses.

Now that the airlines have been subsidized with our hard earned money next 
are the insurance companies. The canard is we have to help them to avert an 
economic meltdown at the end of the year when many insurance contracts 
covering business, office buildings and factories expire. Without such 
coverage, lenders will not finance real estate purchases, construction or 
investments by business in plants and equipment. Well so what. All they 
have to do is self insure by setting up their own reserve fund from profits 
or pay a larger payment along with principal and interest. Insurance is a 
racket. They are nothing but high priced bookmakers using actuaries to set 
their odds. Insurance companies by and large are loaded with money. The 
need a bail out like we need a hole in the head. The lobbyists who have 
paid off politicians for years are putting the big bite on these 
white-collar crooks in congress not only from the insurance industry, but 
also from real estate, travel and can you believe the investment industry, 
which did more than any group except the FED to bury the economy. These are 
not economic issues these are bailouts, just like the S&L fiasco. We 
predicted $500 billion in losses in the early 1980s. Everyone thought we 
were crazy. We were right. Officials in government are even exploring other 
plans including creation of a new government-backed enterprise like Freddie 
and Fannie to bankroll losses from terrorism. The taxpayer is simply 
getting screwed again.

Cries of anguish are being heard from every illegal alien in America. The 
White House and Congress have been forced to move rapidly toward making the 
immigration laws even tighter. These dolts in congress now realize the 
greatest threats to the country are coming from legal and illegal aliens. 
Thus, the illegals are lying low. We are sure many are appreciative of 
being in America and some we are sure have contributed time and money to 
the victims of terrorism. We have had a different breed of legal and 
illegal aliens over the past 40 years. Firstly immigrants from Canada and 
Europe have been systematically forbidden or discouraged from coming to 
America. Secondly, our recent arrivals still think of themselves as being 
from another country and they are of that country, not America. This place 
just happens to be where they are allowed to make a living. We even have 
dual citizenship for Mexicans. They live in Los Angeles and vote and run 
for office in Tijuana. Give us a break. What kind of allegiance is that? 
What is really galling to us, as rabid soccer fans, is that in the recent 
soccer match against Honduras at RFK Stadium in Washington, D.C., the 
hometown crowd not only cheered for the visitors and booed the Americans, 
but the attendees were throwing balloons of human feces and urine at the 
crowd and the US players. Are we strangers in our own land? Star defender 
Jeff Agoos said, "to walk on to your own stadium in the capital of our 
country and see the crowd supporting the other team
 it’s not devastating, 
but it was disappointing for us. These games are so big; you need every 
advantage you can get. We would like to see as many Americans out there as 
possible. It does lift you up." There you have it fellow Americans straight 
from an American. Foreigners of recent vintage both legal and illegal have 
to be Americans or we don’t need them here. That is why all legals that 
entered over the last 6 years should have a special ID card and have to 
report to the INS when they have any movement out of the state. Illegals 
should be all sent back from whence they came and apply legally.

Fiscally, monetarily and economically we passed the point of no return 
almost two years ago. Next the problem of excessive and massive debt has to 
be addressed, which is normal at this stage of collapse. Due to ignorance 
of economic matters, both by those who were college trained in business and 
the general public, Americans don’t understand what is happening to them. 
Even those educated in economics have only been exposed to Keynesian 
claptrap and never even heard of the Austrian School of Economics, so how 
can they discern truth from fiction. When monetary aggregates expand so 
does debt. They cause malinvestment and overly conspicuous consumption. 
This is accompanied by higher unemployment and lower wages, which 
exacerbates the ability to service debt, as demand plummets. The wealth 
effect and the new economy are gone and Goldilocks is nowhere to be seen, 
nor do CNBC, government and Wall Street ever mention such devastating 
embarrassments. The public is finally getting it, the markets are rigged. 
That is all the markets. The public has lost confidence and that is why the 
economy and markets are going down and why we have a new war right on schedule.

We are told in the news NATO is patrolling our sky’s. We didn’t know NATO 
had an air force. We thought it was a group that acted jointly but severally.

We guess it wasn’t P. T. Barnum who said, "Buy them and hold them," it was 
Wall Street and CNBC. They also discovered there’s a sucker born every 
minute. By following such advice the American public has only lost $7 
trillion. Then again, what’s a trillion here and a trillion there? We would 
expect after 17 years of a bull market that we wouldn’t see the beginnings 
of another bull market until June of 2004 or the fall of 2008. Even if we 
hit a bottom in 2002 or 2003 another base has to be formed and that could 
take years. This will be a long drawn out affair. The myth, propagated by 
our government, Wall Street and CNBC that there will be a quick turnaround 
after the correction is complete disinformation so as to not cause panic 
among investors. It took those who held on in 1929 twenty-six years to get 
even. That is what the propaganda machine fails to tell the investor. We 
believe this correction will be as bad if not worse than 1929. If you think 
it can’t happen today just take a look at Japan. The Nikkei Dow was 40,000 
in 1989. It recently traded at 9,500. We recommended our latest short at 
21,000. That is a 12-year bear market and it’s not over yet. We find it 
impossible to believe that the consumer is now going to save the economy. 
His and her confidence has been shaken by terrorist attacks, they are 
questioning the competence of government and big business and consumer debt 
is 75% of GDP and 87% of income. There is absolutely no chance now that the 
consumer can come to the rescue. You are experiencing the greatest 
financial insanity of any nation in history. 1929-33 will soon be relegated 
to second place in the history books.

In the last few weeks of September online sales of inflation-indexed bonds, 
so-called Series I Bonds, which we recommended, jumped $30 million a week, 
double the usual level. They’ll earn 5.92% for at least six months, nearly 
1.5% above the national average of 4.47% paid on five-year certificates of 
deposit. I Bonds can be cashed out in five years without paying a penalty 
and accrue interest for 30 years. You can access the cash early by paying a 
three-month interest penalty, much like a CD. These bonds are indexed to 
provide a hedge against inflation and offer a guaranteed annual rate, 
currently 3%, which remains for the life of the bond. A second rate, 
currently 2.88%, is pegged to the rate of inflation, as measured by the 
CPI. The two rates combined generate the current 5.92% annualized yield. 
They are issued in certificate form and purchases are limited to as much as 
$30,000.00 face amount a year for each Social Security number. You can 
avoid this by having them issued in names of family members. If you are 
interested buy them before 11/1/01 to lock in the current yield for six 
months. Even if only held for one year and you pay the penalty to cash them 
in early you’d still earn about 4.1%, which is much better than 3.32% that 
one-year CD’s now pay.

Just to show you how bamboozled investors are, Rydex Venture 100 Fund, up 
100% in three months, has attracted very little new money. Most investors 
think the market is near a bottom, which tells us you should short to your 
hearts delight.

It is called a silent liquidity crisis. During 1997-82 public companies 
with total assets of $17.2 billion filed for Chapter 11. In 2000, 176 
companies went bankrupt with assets of $94 billion, surpassing 1990-91’s 
record. Through this September companies with assets of $163 billion have 
filed and the figure is expected to be over $200 billion for 2001. The 
problem as much as anything else is cash flow. Defaults on junk bonds, 
which we projected to be over 10% in spite of an early rally this year, are 
a signpost for bankruptcy. We predict next year will be even worse.

California is quickly headed for the great dark economic pit. As we 
predicted tax revenues are off sharply and the state could go $6.2 billion 
in the hole if it doesn’t get its $12.5 billion in bonds sold. The state is 
about to cut its budget 10%. Tuition costs at state colleges will be 
raised. Moody’s is contemplating lowering the state’s credit rating, due to 
an expected loss of revenue from the exercise of stock options and 
capital-gains-related revenues. Twenty-five percent of tax revenue comes 
from these sources. Tax revenue for the first fiscal quarter beginning July 
1, was $747 million below estimates. Two-thirds of that slide was due to 
less personal-income-tax revenue. We see it getting considerably worse. 
Years ago, beginning in 1990, middle and upper-class flight began from the 
state due to onerous taxation, crowding, deterioration in the quality of 
life and massive waves of legal and illegal aliens, which in combination 
has destroyed their tax base. In the coming recession/depression they will 
suffer far more than any other large state. In September alone quarterly 
tax payments were off 7.4%, or $142 million and estimated tax payments were 
off 12.5% or $265 million for a monthly total of $307 million. The state 
has a $7.1 billion cash balance, but has a shortfall of $6.2 billion. That 
doesn’t give the People’s Republic much wiggle room.

In spite of the tragedy, NYC in the middle of a demand for space will have 
a softening real estate market like other major cities. Without the WTC 
incident prices on real estate and leasing would have been considerably 
lower. The vacancy rate is 7% headed to 10%.

Consumer credit expanded $2.30 billion in August. That is a 1.7% annual 
rate, after declining 0.4% in July. Auto, mobile home and vacation and 
other loans were up 1.4% versus minus 2.2% in July. Credit card, retail and 
bankcard borrowing rose at a 2.1% annual pace. Revolving credit rose 1.9% 
in July.

It is called disinformation. We quote from the WSJ, "unbuilt cars, idle 
airplanes, lost jobs  all the work of suspected hijackers (ed. Not 
terrorists), wielding box-cutters." They talk of a $100 billion economic 
cutback, plus second half growth of 1% now to be minus 1%. What they don’t 
tell you is the truth and that is the economic downturn would have happened 
anyway. The terrorist tragedy just expedited the process. Keeping in mind 
there is no such thing as coincidence, the events caught the economy just 
as it was going to seriously correct. Interest rates had already been 
lowered several times and a $40 billion tax rebate was being showered on 
taxpayers. Those actions do not leave one to believe the economy was 
ascending. $4-$5 trillion had already been lost in the stock market and 
unemployment had risen from 3.9% to 4.9%. All indications that we were in a 
recession. Not to mention the viscous drop in corporate profits. Consumer 
spending began falling in August. It’s false and ingenuous to blame our 
recession on two terrorist acts and it is disinformation, so typical of our 
kept media.

As we only recently predicted high paying jobs are returning to America. 
Now WPP Group’s Young & Rubicam, Public’s Group’s Saatchi & Saatchi, 
Interpublic Group’s McCann-Erickson and other ad agencies are joining 
forces and forming a coalition to bring commercial production back to the 
US, and particularly NYC. Those commercials shot in Canada, New Zealand and 
South Africa are coming home. We find this absolutely wonderful. New York 
production has already picked up. Clients are going to have to bear much of 
the increased cost, so we’ll shortly find out how pro-American and 
patriotic American business have become. At least it is a step in the right 
direction and these ad agencies should be lauded for being the first to 
take that patriotic step forward. Let’s get all American business to come home.

Just to show you how out of whack the tech-dotcom madness, created by Wall 
Street was, AOL-Time valued its German purchase from Bertelsman at $13.5 to 
$16.5 billion. Analysts now put that value at $2-$5 billion. AOL-Time must 
now pay $6.5 billion and they may not make the payment. When we put the 
short on AOL at $52.00 a share we were well aware of this stupidity and 
that it would involve the sale of more securities and the incumbent 
dilution. Plus, AOL wanted to buy everything in sight in its quest to 
become a secret propaganda arm of US intelligence services.

Genesis Intermedia, once a highflying stock with ties to Saudi crook Adnan 
Khashoggi, is under investigation by the SEC for stock manipulation. Its 
president Ramy el-Batrawi has resigned.

It is very boring each day to see the lineup of so-called "experts" from 
brokerage houses, mutual funds and banks hustling the public. They still 
don’t get it; they can’t give up the ghost. These professionals have still 
lost sight of the risks inherent in the market. They have been and will 
continue to find that all their new fangled models don’t work. This market 
is going down to 14 to 16 times earnings, where it was in 1995, and the 
faster these whiz kids realize this the better off they will be. The 
capitalization-weighted indices don’t define risk; they increase it by 
pointing the user to expensive stocks. In the final analysis we will return 
to basic benchmarks and once there the next bull market will begin.

It is estimated that the art works lost in the WTC disaster were worth over 
$100 million.

By signaling his support for lower taxes and higher public spending in the 
next year, which will reach $130 billion, George Bush has identified 
himself as a true Keynesian. This activist policy to be coordinated by the 
G-7 has never been tried on this scale before and we suspect it will be 
disastrous. A Keynesian Republican Party is now a Socialist Party, although 
we never thought for a moment it was otherwise. The rope provided, we knew 
they’d hang themselves. This makes George Bush, Alan Greenspan and Robert 
Rubin three peas in a pod. Due to mega-increasing of aggregates and fiscal 
stimulus, trillions of dollars of wealth will be confiscated through 
inflation, except, of course, those in gold and silver related assets. 
Europe is reluctant and will come along kicking and screaming. Japan has 
already tried it and it doesn’t work. They have been fiscally injecting 
$250 billion a year into their economy. US public finances are not as 
strong as they make them out to be and as tax revenues disappear government 
and the FED will just print more money. It is just like borrowing short and 
lending long, a guaranteed loser as our S&L’s found out. That was cheap; we 
only lost $500 billion.

The amount of occupied office space shrank by an unprecedented 29.9 million 
square feet between January and June due mostly to sub-leasing 
availability. Much more is to come through bankruptcy, cut backs and 
unemployment. The experts expect annual office vacancy to rise to 12% by 
yearend that is assuming 50% of new leased space will be leased.

The SEC is proposing new emergency powers. Congress is considering 
legislation that would give the SEC authority to impose broader and more 
enduring emergency measures to stabilize markets during crises, which means 
more manipulation.

In response to a request from Harvey L. Pitt, the chairman of the SEC, the 
House Financial Services Committee approved a bill last week that would 
allow the agency to extend emergency orders for up to 30 business days, and 
in some cases for up to 90 calendar days. The SEC’s authority to issue 
emergency orders is now limited to 10 business days.

The bill would also extend the scope of the SEC’s emergency powers to 
include all federal securities laws.

In an effort to keep markets functioning, smoothly since the Sept. 11th 
terrorist attacks, the SEC has taken a series of extraordinary actions, 
including relaxing rules on corporate share repurchases, insider trading, 
impeding shorting and the timing of reports filed with by exchanges on 
order routing, trade execution quality and other matters. Mr. Pitt asked 
Congress to consider extending its mandate.

Representative Michael G. Oxley, an Ohio Republican who is chairman of the 
House committee, introduced the bill, which is under consideration by the 
full House.

Reliable sources say both Russia and the US, in concert, have deployed 
tactical nuclear weapons around Afghanistan. Russia has deployed them 
around Chechnya. Russian bombers are said to be carrying neutron bombs. The 
positioning of these weapons is a counter against a difficult turn of 
events in Afghanistan or to counter terrorists in the US, Britain, France 
or Israel, etc., from using weapons of mass destruction or chemical or 
biological weapons. In another development Chinese Muslim troops, some 
15,000 have been transported by the Chinese to aid the Taliban. It looks 
like we could be looking at a Third World War. Besides the Taliban, bin 
Laden is said to have over 100,000 well-trained Muslim zealots ready to 
engage our forces.

An Intel institutional investor filed a lawsuit seeking class-action status 
alleging the chipmaker made false statements last year about its third 
quarter outlook, product development and product launcher. We have seen 
this happen hundreds of times over the past 40 years and it’s about time 
someone sued and put an end to it.

On 10/10/01 the Treasury sold $6 billion of four-week bills.

Apparel manufacturers employ three million workers in Pakistan and export 
$1.83 billion in apparel to the US. The importers are Russell Corp., 
Kellwood, Warnaco, Sara Lee and Tommy Hilfinger. Duties are 20-30%, yet the 
cost of slave labor allows such production.

Thus far most of the lawsuits against analysts have been dismissed as 
abusive litigation. This is our court system at work. Wall Street lies and 
gets away with it.

Next year the 38% federal income-tax bracket starts at $307,050, up from 
$297,350, the 35% bracket begins on joint -filers at $171,950 and singles 
at $141,250 and 30% starts at $112,850 for joint filers and $67,700 for 
singles.

Early next year debt markets will be inundated with new state and local 
government debt. Locking up long-term money at 5% is a very attractive 
prospect for politicians. This means yields should rise during the first 
four months of next year or the FED will have to increase aggregates massively.

The real estate appraisal business has become like the medical profession. 
If you don’t like what your doctor tells you, you go to a second or third 
specialist. Appraisers for lender and borrower differ by 25 to 50 percent.

Ford has been caught at reverse discrimination. A white manager proved Ford 
explicitly discourage consideration of white men for promotion to a top 
echelon of management in favor of women and candidates of color. The 
lawsuit is now seeking class action status. This has been going on for 30 
years. Hopefully lawsuits like this one will bring discrimination against 
white people to a halt. Promotions should only be on merit, not by social 
engineering. Can you imagine what this experiment has cost America?

Now that airlines have been subsidized, among others, labor unions are 
demanding special benefits for airline workers. We are writing this as we 
fly on Southwest Airlines on a full flight that turned away standbys. The 
AFL-CIO wants $1.9 billion for benefits, job training and health insurance.

The answer is discipline. Pentagon-run schools on military bases for 
children of military personnel offer a model of education reform. The 
schools score at or near the top in reading and writing nationally, 
although their students are poorer and racially diverse. The reason why is 
a strong sense of community and willingness of commanding officers to hold 
parents accountable for their children’s behavior in school.

As far as we can discern all government figures are doctored and 
manipulated. We stated in a previous issue that we believe unemployment and 
inflation are both over 9%. That said we expect government unemployment 
figures to reach 7% to 8.8% next year. We will refine those figures as we 
go along. Unemployment will have to rise to 7.4% to bring household 
expenditures into line with income and unemployment would have to rise to 
9% to induce debt reduction and a return to historical savings levels. The 
myth of productivity is history and higher inflation will manifest itself. 
The FED and Treasury have already or are in the process of spending over 
$200 billion. You should now expect an additional $400 billion in spending, 
which will take the fiscal budget deficit to 6% of GDP. Cuts in business 
taxes won’t show up until the economy revives and then you don’t need the 
extra stimulus. Capital gains tax reductions will generally help only the 
more affluent, thus they are not appropriate in this instance and set of 
circumstances. As we have said personal income tax rebates will help, but 
we don’t want their issuance to be an excuse for cutting social security 
benefits. Due to the fall in tax revenues we expect state and local 
governments to curtail spending. They currently account for 10% of GDP. If 
these municipal entities were to allow tax relief, services would be cut 
along with employment and debt would grow, while relief to taxpayers would 
increase. In all this approach is a loser, even if of a temporary nature.

The FED’s Japanese type policy on interest rates is having a logical result 
and that is total failure. They have been instrumental is holding down bond 
rates temporarily, but that’s it. All of the above portend contraction in 
the economy and guarantees a lower dollar versus major currencies. That 
means a considerably lower stock market as capital takes to flight. This 
means a massive liquidity problem as foreigners also sell bonds. That means 
the current account balance will go into deep deficit and that the FED will 
have to print more money then ever. When we said the problem was systemic 
two years ago we meant just that. There is no way out. The result at best 
will be depression and stagflation, at worst depression and inflation. 
Unemployment eventually could be 14%-18%. It was 18% in the early 1930s. 
The elitists will expand warfare, institute a draft, steal our liberties 
under the guise of a more just and stable new world order. They know the 
existing monetary system will fail because they set it up to fail in order 
to usher in a global financial system. A new Bretton Woods type system is 
needed based on a gold exchange standard and fixed but adjustable exchange 
rates. A gold exchange standard means anyone at any time can demand gold 
for his or her Federal Reserve notes. A gold standard is when only 
governments can make that demand. Of course, that is not what the elitists 
have in mind. They want to initiate a One-World currency doing away with 
all other currencies and the use of gold within the world’s financial 
system. As soon as the dollar has been depreciated in the amount they deem 
necessary, the move to a One-World currency will begin. Those who disagree 
for patriotic or nationalistic reasons will become the enemy of this global 
order. They will be dealt with by eventually being incarcerated in 
interment camps after having failed physiatrist examination. All those 
outspokenly negative will be dealt with.

The strategy of borrowing short-term by business is flourishing. It saves 
companies money and temporarily boasts earnings. Short-term rates have 
fallen much quicker this year than long-term rates. Raising money through 
short-term commercial paper sacrifices long-term financial flexibility. 
Bank lending to business is still falling off some 8% over the past 13 
weeks. Unless a company has a BBB rating banks won’t lend to them. The 
lending goal posts have been moved and eventually there will be little 
liquidity for leveraged businesses. Now the commercial paper market is 
drying up. Outstanding is now $75 billion, down from $145 billion last 
year. That means rates will soon rise and there is a big gap between higher 
and lower rated companies in rate costs. Top tier is paying 2.54% for 
30-day commercial paper, while the second-tier issuers pay 15% more or 
2.92%. That is down from a 5% spread a month ago.

The lower available cash flow is a major concern with growing debt-service 
requirements. It presents substantial refinancing risk, which means 
companies could get into serious financial trouble playing this game. It 
also means soon rates are headed higher due to lack of liquidity.

Fannie Mac offered $2 billion in benchmark notes on 10/17/01 and 10/18/01.

Our preliminary estimate of the budget deficit for fiscal 2001-02 is $50 
billion. All the reserves from Social Security, Medicare, Medicaid and 
Pensions has been looted again.

For the week ended 10/5/01 the Labor Department didn’t like the 
unemployment numbers so they again made "seasonal adjustments". They claim 
claims fell 67,000 to 468,000. The week before that they were 535,000. We 
are having massive layoffs and these idiots expect us to believe this 
garbage. The number of people drawing unemployment-insurance benefits rose 
98,000 to 3,479,000 in the week of September 9th.

The S&P 500 is again selling at 40 times earnings, which is a record high 
thanks to the rally in the Dow to 9,400. The working group on Financial 
Markets, better known as the Plunge Protection Team, has continued to 
sharply move the market upward.
We had said that the market could rally 10-20% in a bear market. That has 
occurred. A 20% move off the lows would be 9,793. The current move to 9,400 
is about 15.1%. This could be the top. Two-thirds of high-income investors 
are bullish as are 50% of the rest. Go short again if you’ve covered in our 
short recommendations. If you are short add more shorts and consider buying 
the Prudent Bear fund (call Rich Radez at 800-485-1700).

As we have pointed out for 10 years it is the oil and gas the elitists are 
after in Afghanistan. The Central Asia Gas Pipeline must be completed from 
Turkmenistan’s Dauletabad gas field to Pakistan and onto India. In the 
meantime they convince Americans to accept a police state.

The trial balloons are going up to get public reaction to a common border 
and security perimeter and synchronized immigration policy with both Canada 
and Mexico, which would end US sovereignty over their own borders and hand 
it over to a regional appointed commission of elitists. Paul Cellucci, US 
ambassador to Canada and former CIA operative, has made just such 
representations to Canada. The Cellucci elitist proposal would eliminate 
the borders and amalgamate all three countries into one. All three would 
lose their sovereignty and their particular identities.

Governor Grey Davis of the Peoples Republic of California, as we predicted 
is seeking budget cuts of 15% as Moody’s considers downgrading the state’s 
credit rating as California’s revenues plunge. The state is headed for 
social and financial chaos.

The secretive, privately owned US Federal Reserve, refuses to become a more 
open institution and transparent, says Alan Greenspan. Presently minutes of 
monetary-policy discussions are not available for five years. This 
exacerbates financial market volatility and inefficiency and hedges its 
manipulation of the gold and other markets. They are really accountable to 
no one, because no one in Congress dares challenge them for fear of being 
professionally destroyed or having an accident.

Harvard Law School, who else, is beating the drums for an international 
tribunal comprising US and Islamic judiciary be set up to try terrorists. 
This will turn the episode into a circus for murderers and legitimize an 
illegal foreign court. Mr. bin Laden and all his accomplices should be 
tried in the US. Although we believe they will be and should all be 
liquidated. The leftist cry from Cambridge is legitimacy. America may be 
the world’s policeman, but the terrorist murders were committed in NYC not 
in Paris or Cairo. They’d have trails at the International criminal Court 
that has no legal standing and never will. Who cares what the Muslims and 
the world public thinks, those were innocent Americans that were murdered, 
because they were innocent Americans. They also proposed the UN Security 
Council establish a court. Whatever way possible these elitist want to rob 
us of what is left of our court system. All that garbage about puralism and 
tolerance doesn’t wash. We want American justice, not global justice, ever.

A federal judge approved a settlement agreement that will require NYC 
officials to provide translated documents and interpreters to food stamp 
recipients who speak little or no English. The city’s Human Resources 
administration will have to make available Spanish, Russian, Chinese and 
Arabic copies of food stamp applications and other forms and notices 
related to food stamps and welfare. They must provide bilingual workers and 
eventually provide for those who speak 136 different languages. These rules 
will eventually affect 500,00 to 1 million foreign NYC inhabitants. Our 
immigration policies are something to behold. They arrive destitute, with 
no education, and no money, and immediately are put on food stamps, 
Medicaid and welfare and we get to pay for it.

US Bankcorp announced it was adding $1 billion to loan loss reserves. 
Providian Financial, one of the hottest specialty financial companies, 
operating in the sub-prime market is having big problems with its credit 
card portfolio. The entire loan sector is coming under more pressure from 
rising credit loses.

If we can reiterate again the underlying reason for the war in Afghanistan 
is oil and gas. To this end world elitists support repeal of section 907 of 
the Freedom Support Act. The Caspian region, as we wrote in 1990, contains 
236 trillion cubic feet of gas and oil reserves of 60 to 200 billion 
barrels of oil. In 2010 oil production is expected to be 4.5 million 
barrels a day. The natural resources are landlocked and oil and gas have to 
be shipped by pipeline out of the region to consuming markets. One pipeline 
is being built by the Caspian Pipeline consortium to the Russian Black Sea 
Port of Novorossiysk, which would ship by tanker through the Bosporus to 
Mediterranean and world markets. The other project is the Azerbaijan 
International Operating Company, consisting of Unocal, Amoco, Exxon and 
Pennzoil. Their two chosen routes would be across the north Caucasus to 
Novorossiysk or across Georgia to a terminal on the Black Sea and extended 
west and south across Turkey to the Mediterranean part of Ceyhan. Both 
together would not be able to handle future production nor would they 
pinpoint the right markets. There are two possible solutions to moving oil 
and gas east and southward from the Caspian Sea. The first could be cost 
prohibitive, that is an 1875-mile pipeline into central China plus a 
1250-mile connection to centers along the coast. The second and most 
practical is a pipeline from central Asia to the Indian Ocean. The obvious 
route is across Iran, but that can’t be pursued due to US sanctions. The 
only other possible route is across Afghanistan, whose problems are 
presently manifested. This is why the US, UK and Russia are intent on 
crushing the Taliban, who wouldn’t allow access previously. The premier 
idea is to gather oil from existing pipeline infrastructure in 
Turkmenistan, Uzbekistan, Kazakhstan and Russia. The 1,040 mile-long 
pipelines would go through Afghanistan to an export terminal on the 
Pakistan coast and would cost $2.5 billion. The aim is to link gas 
resources to the nearest viable market. A proposed Eurasia gas pipeline 
also would transport gas from Turkmenistan across the Caspian Sea through 
Azerbaijan and Georgia to Turkey. Cent Gas with the above US players would 
link Turkmenistan’s Dauletabad gas fields with Pakistan and possibly India. 
These companies would make unbelievable amounts of money in the process. 
That is why they want the Taliban extinguished and section 907 of the 
Freedom Support Act rescinded. We can promise you Congress will rescind 
because the price is right. Now you can see what this terrorism is all about.

The Manufacturing Index, which is declining again is a good proxy for 
global economic performance, which is again deteriorating. Large increases 
in government spending are on the way. We just moved from a $350 billion 
surplus to a $50 billion deficit in one year, which again makes the 
government a major borrower for the first time in five years. That will 
crowd other borrowers out of the market sending real interest rates higher, 
the dollar lower and gold higher. The Treasury could easily need to borrow 
as much as $300 billion just in short-term paper.

The Senate sold our souls 100-0 in passing anti-terrorist legislation. They 
can intercept mail, tap phone lines and email without warrant. They want to 
take over all new airport security and create a whole new government 
department of millions and tucked into the bill is Section 803, that makes 
it a crime of terrorism to act in any way that is dangerous to human life 
that violates the laws of the US or any state within the US and appears to 
be intended to (1) intimidate or coerce a civilian population, (2) 
influence the policy of intimidation or coercion or affect the conduct of a 
government by mass destruction, assassination or kidnapping. This is an 
open-ended law. It allows the federal government to pick up anyone at 
anytime who disagrees with what the elitists dictate.

We envision almost all American military being out of the country in make 
believe wars, disturbances and riots in major cities due to depression and 
in order to keep order the Homeland (Fatherland) Security Secretary will 
bring NATO or other troops into the US under the guise of keeping order. 
Then the warrantless searches begin in order to disarm the populace, so 
that they can’t retaliate against dictatorial government. At that time 
Americans will have to decide if they want to live on their knees or remain 
free.

As mentioned before fast track trade authority didn’t have a chance of 
passing. Now George Bush and his elitist cabal are trying to ram it through 
Congress. Needless to say it is unconstitutional but our purchased Congress 
and Supreme Court could care less. They are not about to stop 
globalization; they have been paid too well. They are about to deliver us 
into totalitarian government under the continued subterfuge of national 
emergency. The terrorist attacks, we repeat again, were inside jobs. If 
they were not why were airline stocks shorted and puts purchased by 
non-Muslims in major amounts, and why has the government not told the 
public what we already know? Why were certain parties warned against 
travel? The CIA and Mossad knew the attacks would take place.

What the American public has to understand is that this is a conspiracy. 
Party labels of republican or democrat mean nothing. Most of those in big 
business, academia and politics are controlled and are in this together. An 
example is how both democrats and republicans fought fiercely to keep one 
of theirs, Bill Clinton, from being impeached. These party labels mean 
nothing. These people only answer to their own.

We also hasten to remind you that Mr. (Skull & Bones) Bush is demanding 
America support a massive war over the next ten years that will involve the 
drafting of 18-25 year old boys and girls who will again be led to 
slaughter in far off lands to serve the interests of the New World Order in 
order to return in body bags. We can just imagine the barbarity that will 
be visited upon female American soldiers captured by these throwbacks to 
the 12th century. We are being allowed to support a huge conflict whose 
huge costs, in the midst of a depression, will bankrupt Americans, and cost 
millions of American lives. And, never has this nation been more mentally 
and physically unprepared to take on such a task. None under 45 years old 
has really ever had a bad day in their lives, nor do they have the mental 
toughness to survive. George W. Bush’s first act after 9/11/01 was to fund 
the creation of the biggest secret police apparatus in world history making 
the KGB look like a band of errant stragglers. Our government has declared 
war on us. You just don’t know it yet. What they don’t know is we’ll win 
the war and create a better world.

Texas and New York will probably have to borrow money or raise unemployment 
taxes next year. At the end of June, all states collectively had $54 
billion in their trust fund, nearly triple combined benefits last year. A 
doubling of unemployment by the end of 2002 would make a big hole in that 
number.

Word reaches us that the planning for the Afghan invasion began over a year 
ago. US Special Forces were training the Uzbek military that long ago.

Bank of America’s profits fell 54% due to bad loans and the rest of the 
industry is in similar shape. Moody’s said recently that in the first nine 
months of 2001, the agency downgraded five times as many borrowers as it 
upgraded, the worst since 1995. They say the banks still have many losses 
to write off. The loan market for non-investment grade borrowers is looking 
at a default rate of over 10%. This is also reflected in the lower grades 
of bonds. The spread has again increased between junk bonds and Treasury’s 
to 9%; it’s widest level since 1990. The yield spread between 
investment-grade bonds and comparable Treasury’s is 1.86% versus 1.70% on 
9/10/01. These differentials lead us to believe that fourth quarter GDP 
could be off a minus 2%. Credit ratings are a lagging indicator of the 
outlook for corporate health. 82 companies saw their credit rating put on 
review for a downgrade by Moody’s just over the last quarter, versus 19 
upgrades. The debt on companies put on review for a downgrade adds up to a 
staggering $337 billion versus $50 billion in debt upgrades. The US banking 
industry’s net loan charge offs grew by 45% in the first half of 2001 
versus 2000. Non-performing loans at banks and thrifts have been growing 
27% so far this year, the same as last year but 2.9% higher than in 1999. 
Bank of America still has non-performing assets of $4.5 billion or 1.33% of 
loans, leases and foreclosed properties up from $4.4 billion or 1.09% of 
outstanding loans a year earlier.

The latest tabulation shows that market strategists on average now suggest 
that investors hold 70.2% of their assets in common stocks. According to 
Zack’s Investment Research of 8,000 stock recommendations made by the 
analysts covering the companies in the S&P 500, only 29 are listed as 
sells, that is less than 1/2 of 1%.

The Treasury cut another $6 billion in public debt by issuing only $6 
billion in four-week bills.

Merrill Lynch has been sued by Unilever PLC’s pension fund for not having 
proper risk controls. The suit seeks damages of $189 million. If Unilever 
wins the floodgates will open with a stream of mega lawsuits. They used too 
much concentration and not enough diversification; they were simply 
incompetent or protecting Merrill’s own long positions.

A bill sponsored by Senator Christopher Bond (R.MO) would require employers 
to tell federal authorities within 14 days when they release a worker on an 
H-1B temporary work visa and give a reason why, or the company would be 
banned from hiring H-1B workers for a year. 1.2 million were approved in 
2000 and employers usually ignore the rules and we have another illegal alien.

The Justice Department has detained 744 people regarding the terror attacks.

Be patient, the dollar and the Dow are nearing the end of their bear market 
rallies. America is in recession and the dollar and the market will 
continue their declines over the next 3 to 4 years and gold will ascend. 
The dollar should drop 20-25% versus major currencies and the Dow should 
drop about 50%. The current account deficit still is 4.3% to 5% and that 
and lower yields are failing to attract foreign funds. High yields, or 
better yet, the 1-point spread in the AAA corporates over 10-year 
Treasuries, are an indicator of discounting of a potential dollar problem. 
The US economy cannot return to rapid, non-inflationary growth, with 
massive excess capacity and 2% interest rates. Keynesians call for ever 
more stimulus, which is the wrong thing at the wrong time. It drives 
investors away from America. This is borne out by the recent rise in real 
interest rates.

We are surprised the IRS wasn’t included in the new Homeland (Fatherland) 
Security Department (HSD). Its reputation has already reached what the HSD 
is about to become. Their most recent dirty trick fits its reputation 
perfectly. If you are on Social Security and owe them money they will 
deduct 15% from your monthly check. That cuts the average check down from 
$780.00 a month to $663.00 a month. There are 232,000 Americans who owe 
$1,350 each, who will be forced to pay. This, as we blow up Afghanistan and 
at the same time provide its inhabitants with hundreds of millions of 
dollars in free food. Thus, you might say the $312 million for this free 
food for the enemy is being squeezed out of retirees, who live like beasts 
and can’t pay for medication. There is something very wrong with a 
government with these kinds of priorities. The program began in July 2000, 
16 months ago, and the only ones who knew about it until now were the 
victims. More stealth taxes, from a government that is a disgrace.

America’s elitist transnational corporations just can’t help themselves. 
The insurance industry wants the government to cover any claims due to 
terrorist activity; mortgage bankers want $60 billion over five years; 
tourism wants a $4 billion bailout; airline workers want $1.9 billion; 
airports seek $5 billion; New York City and State wants $54 billion plus a 
WTC recovery zone and guess what, we get to pay for all this.

It looks like creditors of $6.63 bullion will either take over South 
Korea’s Hynex Semiconductor or let it go under. GM took over Daewoo in 
order to recover its $10 billion investment.

The Keynesian adrenalin freaks are at it again. They are about to increase 
fiscal spending by over $115 billion and the FED is adding over $200 
billion. The FED’s monetary aggregates cause immediate response, but with 
the denigration of capital it will only have a balancing effect over the 
next two months. The fiscal spending rewards won’t show up until the third 
quarter of 2002. Again, Japan’s experience, over the past 12 years, shows 
that both fiscal and monetary stimulus doesn’t work. The result will be 
stagnation at best, stagflation, recession and perhaps depression. US debt 
won’t be redeemed, more debt will be created and if we have inflation real 
interest rates will rise. It also means higher unemployment, less 
consumption and non-productive government projects. Incidentally, it didn’t 
work for Roosevelt either. That is why we had another war. The only thing 
they’re done right is to cut taxes.

New York’s Gov. George E. Pataki has said the state will be out $3 billion 
in spending over the next 18 months. They will refinance state debt and 
institute a hiring freeze as a result of the recession.

Personal bankruptcy filings in Hawaii are up 63% for the period from 9/7/01 
to 9/29/01 versus a year earlier. Up also were Minnesota 62% and Nevada 39%.

Since Boeing announced a 36,000 worker cutback things have gotten 
progressively worse in the State of Washington. The job market has dried up 
and there are many homes for sale, but few buyers. Oregon has been losing 
3,500 jobs a month since February and now has one of the highest 
unemployment rates in the country at 6.4%. Washington’s unemployment is 
6.1%, up 1% in a year.

The Bush administration has new mortgage disclosure requirements that will 
protect illegal lending practices and shield mortgage companies from 
class-action lawsuits. HUD would require lenders to spell out to the 
consumers the actual cost of a home loan. At issue is the yield-spread, 
premium impacted by persuading homebuyers to accept higher interest rates 
without passing along the lower upfront costs. This would be explained to 
the public among other costs. The spreads are simply kickbacks. The new 
rules explain costs to people incapable of understanding their complexity.

Here is a flash from a subscriber: In Englewood, CO. a $218,000 home was 
put on the market in May. It was sold this past week for $177,000. The 
realtor said his firm has had only two showings in three weeks.

Eight people including three INS inspectors, all Mexican Americans, have 
been arrested for operating an illegal alien smuggling ring in the 
Brownsville, Texas area. They charged $300-$600 for arranging passage. It 
is no wonder we have this tremendous flow of illegal aliens flooding our 
country.

The Office of Homeland (Fatherland) Security will be immune from 
Congressional oversight or judicial review or regulatory control. If you 
may, above the law. Thus, it is extra-legal, judicial and legislative. Even 
though George Bush will chair it it will be extra-executive. The power of 
this agency is extraordinary. It even does away with protecting whistle 
blowers. This new super agency guts the whistleblower Protection act and 
the Freedom of Information Act. The office of Homeland (Fatherland) 
Security is immune from any public request for information. It submits no 
accounting, not even to the GAO. It can suspend habeas corpus, whenever it 
pleases. They can detain you for years without limitations. They have 
completely suspended the fourth Amendment privilege of unwarranted search 
and seizure. They can seize assets without judicial procedure. The assets 
of any person or news agency, which would attempt to disseminate the truth, 
can be seized. There is now no 5th Amendment protection against 
self-incrimination. Torture and interrogation is authorized under Section 
409C of the National Security Act. They can even now label politicians 
seditious and stop them from disseminating ideas. They are talking about 
reviving the Seditious Publications Act of 1942 through which publications 
can be terminated if they are in disagreement with the agency. What we 
publish would be considered seditious and unpatriotic, because it exposes 
elitist and government lies and deceit. You can expect uncontrolled 
wire-tapping and surveillance of anything electronic. Then will come the ID 
cards and later curfews due to more bogus terrorist acts commissioned by 
the CIA. They’ll finance it all with deficit spending and inflation. There 
you have it subscribers, we have been screwed again.

The Federal Appeals Court in New Orleans has ruled that the constitution 
guarantees individuals a right to have firearms, but said the right was 
subject to some regulations, leaving the door open for gun control 
provisions. They said there is a constitutional right for individuals to 
bear arms, contrary to most court decisions, which have said the Second 
Amendment gives only a collective right, such as for state militia units. 
It is unlikely the Supreme Court will review the decision. The ruling sets 
law only for federal courts in Louisiana, Mississippi and Texas.

When the public finally realizes that the FED and the government in league 
with Wall Street have been rigging the markets, via the Plunge Protection 
Team, they’ll be fed the line that it was a matter of national security. 
Well, let us tell you something; they won’t get away with it this time.

The medical world has finally recognized that blanket treatment of healthy 
livestock with antibiotics is creating super bacteria that are now a health 
threat. Needless to say, drug companies, President Bush and other elitists 
will fight to keep the program going. It should be prohibited. Twenty 
million pounds of antibiotics are administered to US livestock annually, 
yet 20% of all ground meat is infected with salmonella. Antibiotic 
resistance is building among humans due to meat consumption and bacteria 
are getting even stronger and untreatable.

Investors added $9.79 billion to money market funds for the week ended 
10/16/01, bringing assets to a record $2.2 trillion. Institutional 
investors accounted for all the increase, which means the public is still 
frozen in the headlights. Even with yields falling we see ever increasing 
funds seeking shelter in money market funds. 30-day compounded yields fell 
to 2.57% from 2.73% making the I-bond super attractive.

Alan Greenspan’s sophistry just adds to the murkiness he finds in the 
economy. Unbound confidence has passed and reality unfortunately is at 
hand. The bubble that was high tech dot com spending is long past. He tells 
us that long-term prospects for faster productivity are scarcely 
diminished. During the boom years, 1996-2000, we now find productivity 
growth was only 2.5%, just above our long-term 2% level. Mr. Greenspan is 
either stupid or he’s a liar. The latter is the case. The problem is the 
economy. Mr. Greenspan flooded it with money for seven years and now he and 
the economy are pushing on a string. Politicians and businessmen are on a 
flight from reality. The economy has to be purged and it will be. We saw a 
250 Dow point reversal to the downside after Mr. Greenspan spoke on 
10/17/01. In the aftermarket the Dow fell over 200 more points and early on 
the morning of the 18th it was even. This shows you how active the Plunge 
Protection Team is in rigging the market. Mr. Greenspan said, "the economy 
by virtually every measure we can see is coming back." People can’t be 
stupid enough to believe that. They are giving cars away to keep people 
employed, layoffs are massive and he wants us to believe his lies about 
recovery. We are headed for depression and Mr. Greenspan will be remembered 
as one of the biggest economic buffoons of all-time. As we said before the 
terror events were to cover the markets decline and deflect blame from the 
real source, the FED, Wall Street and government. Now the Anthrax 
occurrences are carrying on the cover-up. The public won’t worry much about 
the stock market if they think they’ll be dead shortly. That gets their 
attention. This is all planned this way. They want the market and the 
economy in depression so you’ll be happy to accept the new world order as a 
solution.

The treasury plans to pay down $8.69 billion in federal debt next week with 
the sale of $19 billion in 2-year notes.

Merrill Lynch’s foray into retail brokerage in Japan is a shambles as 
Japanese investors refuse to do business with foreigners.

The House followed the Senate by a 412-1 vote to pass legislation making it 
a crime to secretly carry $10,000 or more in cash across a US border; allow 
the Treasury Secretary to set special controls on transactions with banks 
or countries "suspected" of money laundering; and force banks to collect 
more information about their wealthy private-banking clients and 
correspondent-banking partners. This means a further crackdown on tax 
havens. Only our stalwart, fearless Ron Paul, R-Texas, a longtime advocate 
of keeping tax records private, voted against the bill on the House floor. 
He called it a "package of unconstitutional expansions of the financial 
police state, most of which will prove ultimately ineffective in the war 
against terrorism" We now have fascist government.

President Vladimir Putin has advised Russian officials and prominent 
Russian citizens to cancel plans to travel in the US. Now we ask you, what 
does Vlad know that we don’t know? When elitist Mikhail was asked why he 
canceled his trip to the US he referred to Putin’s decree. He then said 
Russia has no chemical or biological development programs, only research 
for medical purposes. If you believe that you also believe in fairy tales. 
Gorby also was quick to point out that he hoped from, the present crisis, 
"a new international world order" would be created. As you can see Gorby is 
one of the boys.

A scandal is brewing at the elitist private preserve known as Enron. Their 
CFO has realized millions of dollars in profits in transactions it did with 
Enron, which could have been sweetheart deals. The profits were in the tens 
of millions of dollars, a partnership LJM2 Co-Investment was the vehicle 
that enriched the insiders perhaps at the cost of shareholders. Other 
partners were General Electric, Wachovia and Credit Suisse First Boston. 
The stock has dropped from $80 to $29 a share. When questioned about their 
operations no answers were forthcoming. Their return on invested capital 
was over 30%. It will be of great interest to us to see if these elitists 
are brought to court.

The Bush administration’s attempt to insure elitist companies against 
terrorist attacks has hit a brick wall in Congress. The plan is for 
insurance companies to pick up 20% of the first $20 billion in claims and 
us taxpayers will pick up the other $16 billion. This is corporatist 
government. If insurance companies don’t want to assume the risk they 
shouldn’t, but taxpayers should not be responsible. Without terrorism 
coverage, banks won’t approve loans, which is fine. If they want their 
businesses to fall apart and the economy with it, who are we to stop them. 
They’ll change their tune sooner or later. This is not the business of 
government and the taxpayer. Our supposed institutions, insurance and 
banking, run for cover at the first sign of trouble.

Massive layoffs are going to quickly bring to light the results of 
hedonistic living by Americans. People would laugh and



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