The Resourceful Bear Blog

Recently announced 'framework agreements', those being the SPP and the Declaration of EU US 2008, made for a economic, political and investment sea change.
Leader's Agreements, framework agreements, neither treaties nor constitutions, now define and specify working relationships between nations and peoples.

When the North American Leaders announced the Security and Prosperity Partnership at Baylor University on March 23, 2005 the Liberty Bell was retired.

Then when the Western World Leaders announced the Declaration of EU US 2000 in Brdo, Slovenia, on June 10, 2008, the United States Flag was retired.

Image: Liberty and independence are gone forever

The Security And Prosperity Partnership Of North America defines the working relationship between the nations and people of North America.
Presented below is a photo from the Baylor University web site showing Condoleezza Rice And George Bush as they were greeted by Baylor University's Robert B. Sloan Jr. and members of his staff immediately prior to the announcement of the Security and Prosperity Partnership, the SPP, on March 23, 2005.

Mr. Sloan said: "It is an honor for Baylor University to host the leaders of the United States, Canada and Mexico," and he continued: "Here at Baylor, we want to teach our students to serve. Baylor today had the opportunity to serve on behalf of our country and the world, and it is a tremendous privilege for Baylor to host this trilateral meeting."

The Security And Prosperity Partnership provides state corporate rule to deal with systemic risks -- systemic failures such as debt guarantor insolvencies, and outbreak of pandemic disease, such as avian influenza as mentioned in the Leader's Joint Statement of March, 31, 2006 in Cancun, Mexico.

The photo below is of President George Bush with Robert J Stevens of Lockheed Martin and other business leaders in a March 2006 Security and Prosperity Partnership "Progress Meeting" held at the Cancun Summit.

Canada's Stephen Harper, spoke before the Economic Club of New York, where he related the need for a continental response to overseas threats to the continent' security and prosperity.

The think tank, Council on Foreign Relations, CFR, has called for Regional monetary integration; Andrew G. Marshall writing in a GlobalResearch.ca article sees this resulting the use of a continental currency: the Amero.

I believe that a continental response to either an oversees 'economic threat' or a continental response to a 'internal health or economic threat' by the combined Canadian and US Military under Northcom will see an expropriation of the continents' precious metal, natural gas, energy, energy service, steel, potash, coal and oil sand resources to be managed by combined state-corporate rule for the greater needs of the continent as a whole.

Truly the natural resource stocks, such as natural gas producer Cabot Oil and Gas, COG, and ETfs, such as the energy producers, XLE, and the oil service company, OIH, have weathered the stock market storm that has come to the banking, finance and real estate sectors, PEY; but with the expropriation that I envision, all the natural resource stocks are going to suffer dramatic falls, when action is taken to secure the Continent's security and prosperity interests.

Not only will the natural resource stocks fall, when the provisions of the SPP are enforced, but all stocks as well.

With the announcement of the SPP, we have an entirely new political landscape: the word, the will, and the way of the leaders is now the law of the land, and the whole continent for that matter. We have the creation of a 'state-corporate combine' with 'security measures' in place, to rule over the resources and people of the North American continent.

The North American Competitiveness Council is the free trade ruling body in North America
As stated above stakeholders -- ministers in government, and leaders in commerce, finance and industry have been coordinating in Summits and in working groups for three years now, under the direction of the North American Competitiveness Council, the NACC, for unified state-corporate rule of the North American Continent, as well as to work out detailed and harmonized security trading, transportation and other corporate laws to address threats to the continent's security and prosperity.

It was in the Exchange Magazine: Security and Prosperity article dated February 29, 2008 that related the Agenda for recent Leaders' Joint Meeting held recently in New Orleans, of which I glean the following key components.

The announcement mentions the word, "our people". The three leaders, Bush, Fox and Martin, on March 23, 2005 announced a "homeland", governed by global principles of security and prosperity -- the Leaders and stakeholders are now sovereign: sovereign nations with their constitutions are a thing of the past.

A purpose of the Leaders' Joint Meeting was to announce, that is to communicate the legal status of, the Regulatory Cooperation Framework -- the strategic agreement that super cedes commerce and security laws of the individual nations of North America.

Thus, the Uniform Commercial Code, the UCC, which harmonized commercial transactions in the 50 state, is an economic and legal dinosaur made extinct by the SPP.

Initiatives taken under the SPP are to be seen as an extension of NAFTA with competitiveness being a key criteria and driving factor.

And a focus was to meet with the "Continental Economic Congress", that is the North American Competitiveness Council, the NACC, described in the article from NAFTA to the SPP guides Finance, Commerce and Trade,

The Declaration of EU US Summit of June 10, 2008 defines the working relationship between the Western World and the rest of the world
Jerome R. Corsi, reports that this Declaration is of Magna Carta like importance, in that it provides a 7 year plan to align the EU and US in a super Western World Governing Body.

The western world leaders now have authority to act, under the Declaration of EU US Summit 2008, on issues of global security and prosperity.

The first actions of the EU US Western World Government will be, as Chinaview.com.cn relates: solving the threat of Iran's controversial nuclear program.

Numerous sources such as the SeattleExaminer.com have posted the text of President Bush's appearance in Slovenia where he described the success of the EU US Summit 2008.

The Transatlantic Economic Council, TEC, is the supra organizing body for this initiative, and the White House posted its June 10, 2008 report 'Transatlantic Economic Council Report to the EU-U.S. Summit 2008' on the Internet.

Investment application.
The stock market is in an Elliot Wave 3 of 3 Down which commenced October 31, 2007.

The 3 of 3 waves are the most dramatic and sweeping of all waves; they create wealth on the way up and destroy it on the way down.

Given that the SPP and the Declaration of EU US 2008, presents a clear financial investment risk, I recommend that one immediately disinvest from stocks and bonds and dollar cost average an investment in the ETF, GLD, in trust account, not a brokerage account, and invest in two internet gold trading vaults such as GoldIsMoney.com and BullionVault.com.

Suggested reading
Herb Greenberg: How To Keep Your Investments Safe

Adrian Ash: Why choose gold when the Fed lowers the central bank interest rates

Introduction
The progressive magazine, The Nation, in its current issues, is calling for New Dealism: its call fails to recognize both the causes and severity of the current economic situation, as well as the surge of corporatism to secure the Continent's security and prosperity.

The Nation Has Called For New A New Deal
Howard Zinn writing in Beyond The New Deal relates: "The innovations of the New Deal were fueled by the militant demands for change that swept the country as FDR began his presidency: the tenants' groups; the Unemployed Councils; the millions on strike on the West Coast, in the Midwest and the South; the disruptive actions of desperate people seeking food, housing, jobs--the turmoil threatening the foundations of American capitalism. We will need a similar mobilization of citizens today, to unmoor from corporate control whoever becomes President. To match the New Deal, to go beyond it, is an idea whose time has come".

Corporate Control Has Created A Wealth Surge
Corporate control does exist; and it has rewarded investors over the last five years with an increasing stock market up until the Citigroup Bust of October 8, 2007; the corporate control enabled profits to build month after month and year after year; the profits coming from deficit government spending on the war on Iraq, assistance to education at all levels, imported goods made at overseas factories from low wages, and lower interest rates and Freddie Mac, FRE, and Fannie MAE, FNM, which fueled inflationary housing prices as well as a commercial and residential housing boom.

Elaine Meinel Supkis relates the 2002 to 2007 wealth surge as per last weeks' 'Economic Report Of The President': "Household wealth rose rapidly relative to disposable personal income from 2002 through the second quarter of 2007, supporting the growth of consumption and a decline in the saving rate. Over the 2002–07 period, the ratio of household wealth to annual-income increased 0.7 years, to 5.7 years of accumulated income(that is, consumers collectively accumulated an extra 70 percent of a years’ income). During the late 1990s and again during 2004–06, a strong rise in household net worth coincided with a sizable increase in consumer spending relative to disposable personal income.

Ms Supkis critiques the report: "What bothers me the most is the opening statement by this crew of incompetents: they trumpet a rise in 'wealth' in the US due to the housing bubbleTrillion-Dollar-Experiment ! Our 'wealth' increased due entirely to the 'value' of our housing rising rapidly thanks to a cheap loan regime set into motion by Greenspan! Bankers took advantage of this sub-inflation rate finances from both our central bank and then the Bank of Japan, to flood the US with lending plopped down on top of our housing stock and businesses. This sudden flood of DEBT is our 'wealth'. And this basic misunderstanding of what wealth really is---this is the problem today. Debt is noot wealth. If my house rises in value by 50% and I sell it, if I owe no money on that rise in value, I am 'richer' but only if I live poorer!"

TheEconomist.com relates that investment bankers are at the epicenter of what went wrong: "This process has turned investment banks Bear-Stearns-Troubles into debt machines that trade heavily on their own accounts. Goldman Sachs is using about $40 billion of equity as the foundation for $1.1 trillion of assets. At Merrill Lynch, the most leveraged, $1 trillion of assets is teetering on around $30 billion of equity. In rising markets, gearing like that creates stellar returns on equity. When markets are in peril, a small fall in asset values can wipe shareholders out".

And TheEconomist.com continues: "The banks' course was made possible by cheap money, facilitated in turn by low consumer-price inflation. In more regulated times, credit controls or the gold standard restricted the creation of credit. But recently central banks have in effect conspired with the banks' urge to earn fees and use leverage. The resulting glut of liquidity and financial firms' thirst for yield led eventually to the ill-starred boom in American subprime mortgages."

Corporatism Is The Way Of The Future: Leaders And Stakeholders Will Direct Economic Action
Nothing can be done or will be done to unmoor corporate control, in fact we have progressed beyond corporate control to a state corporate combine of the economic infrastructure on North America, via recently announced framework agreements, these being the lowering of interest rates, and the alphabet soup of Federal Reserve actions to liquefy insolvent banks, the recent nationalization of the investment bankers, and the two aforementioned Government Sponsored Lending Enterprises, GSEs, as well as the announcement of the Security and Prosperity Partnership of North America, the SPP, at Baylor University on March 23, 2005 by the leaders Bush, Fox and Martin.

Capitalism has been on its death bed as evidenced by alphabet soup of Federal Reserve action programs: TAF, TSLF and PDCF. The Fed's actions plus those of Office of Federal Housing Enterprise Oversight, OFHEO, to lower the GSE's capital requirement from 30% to 20%, only serve to temporarily liquefy hemorrhaging insolvent banks and lenders; these are like giving transfusions to an Ebola patient. Capitalism died when Bear Stearns, BSC, collapsed and had to be rescued by Federal Reserve guaranteed acquisition by competitor JP Morgan, JPM.

An Elliott Wave 3 of 3 Down commenced December 11, 2007; no New Dealism can stop the onward deleveraging and devaluation of fiat financial assets; the Nations' progressive call will not stop the quick evolution of Pyramid Society.

A financial emergency, a financial 911, is coming and it will result in the enforcement of the provisions of the Security and Prosperity Partnership of North America, and then corporatism will direct the people and resources of the North American Continent.

A Run On The US Dollar Commenced Several Days Before The Fed Chief Bernanke Gave His Recent Semi-Annual Testimony To Congress
The US Dollar, $USD, in falling from 75 has gone over the "cliff of economic disaster": its current chart shows a type of three white soldiers advance; and a lollipop hanging man candlestick; both suggest a turn lower is at hand.

The soon coming "financial emergency" will likely produce a continental response as envisioned by Canada's Prime Minister Stephen Harper speaking at the Economic Club of New York; such a response will quickly bring about a regional currency -- the Amero.

And Ex-President Vincente Fox admitted to a plan on CNN's "Larry King Live" with President Bush based upon the Security and Prosperity Partnership to replace the dollar with a North American currency, the Amero.


A Bear Market Investment Strategy Is Needed To Protect And Preserve One's Wealth
Here is an investment maxim, in a bull market be a bull; in a bear market be a bear. In a bull market, one buys on dips; in a bear market, one sells into strength.

The stock market is rallying; many sectors, such as the financial sector, traded by the ETF, UYG, have risen back up to their 50 day moving.

The Russell 2000, IWM, and IWM, semiconductors, SMH, and JP Morgan, JPM, have retraced to significant fibonacci levels; this creates a wonderful short selling opportunity.

The EUR/JPY, FXE:FXY, rose, providing an abeyance but not abatement of the unwinding of Yen Carry Trade producing a fall in the 200% inverse of the emerging markets ETF, EEV; yet a cup and handle pattern has clearly evolved portending a breakout for the bears.

Gold trades inversely with the US dollar and is thus a wise alternative to fiat financial wealth found in stocks and bonds; gold, $GOLD, has fallen to its 50 day moving averarge, and is ready for its next advance.

The risk of "loss of investment capital" is great as the run on the dollar is going to continue; there has only been an abeyance not an abatement of US dollar depreciation. The dollar's continual decline will be coming from a decline in stocks as the current rally ends: foreign investors are going to pull out of dollar denominated stocks realing from deleveraging investment banker and real estate assets. In as much as gold trades inversely with gold, it will be going up. Another reason for gold increasing is that Bernanke is going to testify April 2, 2008 before Congress: the currency traders are likely to run up the Yen, FXY, and the Euro, FXE, as preemptive punishment for his actions in debasing the US currency.

The "risk of loss of cash" as well as "investment capital" is unparalleled In history; this being two fold in nature. First, Eddy Elfenbein provides the chart of borrowing from the Federal Reserve, which suggests that the banks such as Citicorp, C, are insolvent. Secondly, the S&P's downgrade of Goldman Sachs, GS, and Lehman, LEH, in light of their leverage suggests a type of "systemic margin call" is imminent. The result being that that cash accounts such as money market accounts, money funds, checking accounts, and dollar denominated short selling accounts at brokerages cannot and will not be honored at face-value in the event of a "financial emergency".

A corporation's resources, and an individual's retirement wealth will be preserved by investing in the gold ETF, GLD, and by investing in the currency Euro ETF, FXE, and the Yen ETF, FXY; and with these margin credit obtained for short selling via one of these means:

1) The Whole Financial Sector Is Worthy Of Short Selling At This Time Because Of The S&P Downgrade Of Goldman Sachs and Lehman; This Can Be Done Via A Sell Of The ETF UYG.
Today, the markets rallied, totally disregarding the S&P downgrade of Goldman Sachs, GS, which actually fell 0.4 percent manifesting a bearish harami, as did Lehman which fell 4%.

The on going Google Finance chart Of UYG and UYG's ongoing Yahoo Finance Chart and UYG's ongoing Stockcharts.com chart, all show the financial sector's dramatic rally.

The current 5 Day Yahoo Finance chart of the 200% financial sector ETF, UYG, shows the a greater rally has come to the finance sector than the Russell 2000 or S&P; it would have even been greater had not the investment bankers, traded by the ETF, KCE, risen more than the 1.7% than it did today.

The current Stockcharts.com chart of the ETF, UYG, shows rising price on falling volume: a wonderful bearish short selling opportunity has arisen just this week.

2) Closed End Municipal Bond Funds Are Worthy Of Short Selling As The Municipal Bond Market Is In Distress

One should establish a short position in these: BTA, VGM and CXE.

3) The 30 Year US Treasury Bond Is Worthy Of Short Selling
The US Treasury Bonds are only as good as the Federal Reserve's Balance Sheet.

The 30 Year US Treasury has been doing very well as is seen in the current the Google Finance chart of BTTRX; yet, we are approaching a market top in the 30 Year US government bond.

The US Treasuries are best shorted via investing in the RYDEX bear market mutual fund RYJUX.

The general population of investors sees the US Treasuries as a "lifeboat of safety" from falling stock prices; and banks have been buying the 30 Year, as a safe thing to maintain their capital requirements, so they can maintain their lending, and don't go out of business; so the US Treasury as reflected by BTTRX has gone up in value; and RYJUX has fallen in value.

As stocks continue to fall from today's rally, the 30 Year US Treasury may rise in value; but the market for these is topping out. Soon, either due to a continued run on the US Dollar, or due to the upcoming financial emergency, the US Treasuries are going to fall faster and harder than the financial sector has fallen, greatly rewarding those who are short.

The disadvantage of RYJUX is that it is a dollar denominated investment; this means that when one cashes RYJUX in, one will have less purchasing power than one has today; so that is why I recommend gold, and that one obtain margin to do all short selling. Risky, one might ask? Yes, such a strategy is risky, because gold could fall further forcing one out of one's margin, if one is totally margined up; so the moral is to not be fully margined up, and to dollar cost average a short of RYJUX.

One can follow RYJUX in Google Finance and in Yahoo Finance as well.

4) TSM And CHT Both Popped On Better China Taiwan Relations; these two represent the short selling opportunities of a lifetime.

5) Individual Stocks Having Risen In Price Are Worthy Of Short Selling
AMN, Ameron International Corporation rose as midcap value stocks rose.
ESS, Essex Property Trust has risen on a dividend increase.
GEF, Grief rose on the Russell 2000s rise.
PSB, PS Business Parks rose on the real estate sector rising.
CIT, CIT Group rose on reports that this lender is in talks with banks overseas to obtain funding for its core lending business.
PCLN, AMZN, NILE all rose on internet retailing rallying.
LOW, HD remodeling retailers rose on the homebuilding stocks rallying.
STT, State Street Corporation represents a great short sell as it is near an all time high in the investment banking sector.
TIF, BIG, GMTN, ACMR all rose on the retail sector rallying.
NWY, ZUMZ rose on apparel stores rising.
PSA, Public Storage rose on REITS rallying.
AZO, Autozone rose on earnings report.
MICC, Millicom International Cellular rose on the abeyance of the unwinding of the Yen Carry Trade.
WD, Western Digital rose on the Nasdaq rising

6) Various Short Selling Opportunities Present In The Following Stocks and ETFs.
Companies Worthy Of Short Selling Because Of Their Huge Derivatives Positions
JPM,C,BAC,

Companies Worthy Of Short Selling Because Of Their Mortgage Exposure
FRE,FNM,

Insurance Companies Worthy of Short Selling Because Of The Credit Default Swap, CDS Positions
AIG,SEAB,

Investment Bankers
GS,MER,LEH,MS,FCSX,JMP,LAB,KBW,STT,

Mortgage Companies
CMO,NLY,CBF,CFC,CBF,ANH,MFA,DRL,

Banks
WB,CS,HBC,C,FBTX,BK,WFC,WM,WB,UBS,HDB,CM.TO,BK,BAC,

Surety
ABK,MBI,RDN,PRS,

Basic Materials
AA,

Homebuilders
XHB,DHI,PHM,CTX,KBH,HOV,SPF,LEN,RYL,BZH,CTX,OHB,BHS,

Railroads
UNP,GWR,CSX,BNI,NSC,

Trucking has been rising on the railroads rising.
R,CNT,LSTR,JBHT,ABFS,

Mortgag REITS
REM,NLY,ANH,CT,MFA,NCT,

Real Estate and REITS
ELS,NCT,ACC,PSA,AVP,AVB,CPT,VTR,SPG,RSO,BXP,SSS,

Real Estate Developers
JOE,STRS,

Steel: these have been strong due to recent Yen Carry Trade Investment
SLX,SCHN,NUE,X,STLD,CLF,HSVLY,SID,

Lumber and Building Materials
AMN,KOP,DEL,GWW,

Chemicals
PX,MEOH,

Industrial
WHR,IBM,KEX,AIRM,TYC,HON,SSD,

Consumer Discretionary
URBN,PLCE,NKE,PNRA,YUM,PERY,GIL,ANF,GPS,CMG,GYMB,TLB,

Healthcare: these have been rising as an investment anti-thesis of the financial sector.
ISRG,EXAC,

Semiconductor
AMAT,

Credit Services
WRLD,CIT,AGM,MA,COF,ADS,

Eggs
CALM,

Communications
TCL,

Water
CWCO,AWR,CWT,

Entertainment
CEC,CCL,

Emerging Markets
EEM,EWZ

Related Information
Jesse's Cafe Americain On Going US Dollar Chart

US Dollar Long Term Chart

A Vicious Circle Ending In A Systemic Financial Meltdown

I. Introduction
The repeal of the Glass Steagall Act led by Robert Rubin and others of the CFR, has produced our current investment dilemma of the breakdown of the residential mortgage investment sector and created financialization -- a relatively new term used to discuss the emergence of a new form of capitalism in which financial markets dominate over the traditional industrial economy.

Greta Krippner of the University of California - Los Angeles has written that “financialization” refers to a “pattern of accumulation in which profit making occurs increasingly through financial channels rather than through trade and commodity production.”

More popularly, however, financialization is understood to mean the vastly expanded role of financial motives, financial markets, financial actors and financial institutions in the operation of domestic and international economies.

In his 2006 book, American Theocracy: The Peril and Politics of Radical Religion, Oil, and Borrowed Money in the 21st Century, American writer and commentator Kevin Phillips presented financialization on page 268 as “a process whereby financial services, broadly construed, take over the dominant economic, cultural, and political role in a national economy.”

And Charles Harman reports that the Marxist economist Robert Brenner has used official US statistics to produce figures that show manufacturing profit rates in 2000-5 at levels lower than in either the early 1970s or the 1990s (although higher than in the late 1970s and 1980s). His calculations for all non-financial corporations show them as about a third lower in 2000-6 than in the 1950s and 1960s, and about 18 percent lower than in the early 1970s.

II. Details
The CFR is The Sovereign in North America's commerce, investment and governmental activity and endeavors.

The CFR, through its agents, primarily Sanford Weill, Bill Clinton and Robert Rubin repealed the Glass Steagall Act.

The repeal was the foundation, that is the keystone, that provided for non transparent financial manipulation and use of leverage to revolutionize the activities of investment beginning in 1999, to amass huge fortunes for the investment bankers who designed, marketed and oversaw the use of leveraged investments, and to generate awesomely speculative endeavors at hedge funds, which have gone unregulated by government oversight.

The repeal has produced an oligarchy of power and elite, in intertwined media, retail banking, investment banking, home mortgage sectors, via interwoven board of director memberships of the Federal Reserve, corporations and government administration, extending into the the White House, via secretary of the Treasury Paulson, former executive of Goldman Sachs.

And the repeal enabled leverage, to be conceived, deployed and expand, not only in the residential mortgage sector, but a host of other sectors as well, such as, municipal bonds, and derivatives such as credit default swaps.

Investment leverage snapped this last week with the $20 Billion Carlyle bond fund experiencing margin calls, where risk was multiplied by 33 to 1, that is, the underlying assets represented only 3% of the portfolio value; and those assets were illiquid, thinly traded issues: it was reasonable that this fund would be the first of many countless to break causing a sharp sell off in the finance, real estate and banking sectors as investments were sold at fire sale prices to meet the margin calls.

And now, to the aid of illiquid banks (and most likely insolvent banks) comes a rescue by the Federal Reserve in expanded TAF

in the near future, as there is a greater unraveling of investments, there is likely coming a 'continental response', to provide security and prosperity, under the provisions of the SPP, which has its origins in the activity of CFR's Robert A. Pastor, instructor at American University.

So likely soon, the CFR will be providing the remedy for a crisis it created.

The result of implementation of the SPP's provisions will be a state corporate combine of elite stakeholders actively ruling in principles of security and prosperity over the resources and people of the North American Continent.

III. The Facts (snips from various authors)
A. Redpillguy writes in The Media Moguls, the Bankers, and the CFR that Robert Edward Rubin (born August 29, 1938) is an American banker who served as the 70th United States Secretary of the Treasury during both the first and second Clinton Administrations. During his time in the private sector, Rubin has served on the board of directors of the New York Stock Exchange, the Ford Motor Company, the Harvard Corporation, the New York Futures Exchange, the New York City Partnership and the Center for National Policy. He has also served on the board of trustees of the Carnegie Corporation of New York, Mt. Sinai Hospital and Medical School, the President's Advisory Committee for Trade Negotiations, the U.S. Securities and Exchange Commission Market Oversight and Financial Services Advisory Committee, the Mayor of New York's Council of Economic Advisors and the Governor's Council on Fiscal and Economic Priorities for the State of New York. He is currently the co-chairman of the board of directors of the Council on Foreign Relations.

In April 1998 Travelers Group announced an agreement to undertake the $76 billion merger between Travelers and Citicorp, and the merger was completed on October 8, 1998. The possibility remained that the merger would run into problems connected with federal law. Ever since the Glass-Steagall Act banking and insurance businesses had been kept separate. Weill and Reed bet that Congress would soon pass legislation overturning those regulations, which Weill and Reed and many other businesspeople considered obsolete. To speed up the process, they recruited ex-President Gerald Ford (Republican) to the Board of Directors and Robert Rubin (Secretary of Treasury during Democratic Clinton Administration) whom Weill was close to. With both Democrats and Republican on their side, the law was taken down in less than 2 years. (Many European countries, for instance, had already torn down the firewall between banking and insurance.) During a two-to-five-year grace period allowed by law, Citigroup could conduct business in its merged form; should that period have elapsed without a change in the law, Citigroup would have had to spin off its insurance businesses.

In November 1998 Jamie Dimon was forced to resign from Citigroup.

In 2001, Sanford A. Weill became a Class A Director of the Federal Reserve Bank of New York. Class A Directors are Board Members who are elected by Member Banks (of the Federal Reserve System) to represent the interests of Member Banks. (See article on Federal Reserve Bank Board Membership).

In 2002 the company was hit by the wave of "scandals" that followed the stock market downturn of 2002. Chuck Prince replaced Mr. Weill as the CEO of Citigroup on October 1, 2003.

B. Judith Moriarty writes in Foreclosures - The Untold Story that the chief aim of the money men (assisted by both Republicans and Democrats) for decades was to roll back FDR's New Deal. Anti-government rhetoric ( distracting labeling) has hidden this from public view. The 'Banking Act' of the New Deal was a priority by vested interests in being repealed. The undoing of this Act took decades and approximately $200 million in lobbying funds to accomplish.

"Billionaire Sanford Weill made 'Citigroup' into the most powerful financial institutions since the House of Morgan a century ago. A major trophy of Sanford's is the pen Bill Clinton used to sign the REPEAL of FDR's Banking Act - a move which allowed Weill to create Citigroup. " Sanford Weill called President Clinton to break the deadlock after Senator Phil Gramm, chairman of the Banking Committee, warned Citigroup LOBBYIST Roger Levy that Weill has to get the White House moving on the bill or he would shut down the House-Senate Conference. A deal was announced at 2:45 a.m. Just days after the Clinton administration (including the Treasury Department) agrees to support the REPEAL, Treasury Secretary Robert Rubin, the former co-chairman of a major Wall Street investment bank, Goldman Sachs, raises eyebrows by accepting a top job at Citigroup as Weill's chief lieutenant. The previous year, Weill had called Rubin to give him advance notice of the upcoming merger announcement. When Weill told Rubin he had some important news, the secretary reportedly quipped, "You're buying the government." Progressive Historian

With the stroke of a pen, Bill Clinton ended the long saga of Republicans and Democrats, working in concert, for their puppet masters (the bankers) with his signing of the 'Financial Modernization Bill' (Nov 12, 1991). Clinton ended an era that stretched back to William Jennings Bryan and Woodrow Wilson and reached fruition with FDR and Harry Truman. As he signed his name, William Jefferson Clinton symbolically signed the death warrant of a level playing field that had guided the Democratic Party. Clinton (both parties) knew better than FDR and our Supreme Court. Nov 12-1999, President Clinton stated, " Glass- Stegal (FDR Banking Bill) is no longer appropriate for our economy. This was good for the industrial age. The (1999) Financial Modernization Bill is the key to rising paycheck and great security for ordinary Americans". Tell this to Michigan - NH - California - Georgia etc. The public was distracted from one of the most important pieces of legislation in this nation's history being signed by Bill Clinton, with round the clock coverage, of the Monica debacle. Seeing how Clinton came out of this shameful episode lauded as heroic - super stud - and a multi-millionaire, why one one would almost think that the whole sordid affair was contrived? Most especially with Lieberman acting as the holier than thou apologist ! Missed was Clinton's reason for the undoing of FDR's landmark bill Press release: http://Treas.gov/press/releases/ls241.htm

What does this repeal mean? The hedge fund industry and subprime mortgage market is out of control. The New York Times in a June 2007 profile of Goldman Sachs: "While Wall Street still mints money advising companies on mergers and taking them public, real money - staggering money - is made trading and investing capital through a global array of mind bending products and strategies unimaginable a decade ago."

Goldman Sachs head Lloyd Blankfein paints the perfect picture of what has happened: "We've come full circle, because this is exactly what the Rothschild's or J.P. Morgan the banker were doing in their heyday. What caused an aberration was the Glass-Steagall Act (FDRs - Banking Act)." Blankfein, like his cohorts in corporate greed, sees the New Deal as an aberration and longs for a return to the Gilded Age.

Level playing field? Notice how flat it was before the REPEAL of FDR's Banking Act. Those subprime loans amount to nothing more than an organized ripoff of millions of Americans with the steepness of the graph illustrates how far the playing field has titled. Robert Kutter (Stanford University) testified before Barney Frank's Committee on Banking and Financial Services in Oct 2007 " Since repeal of Glass Stegall (FDR Banking Act) in 1999, after more than a decade of de facto inroads, super banks have been able to re-enact the same kinds of structual conflicts of interest that were endemic in the 1920s - tending to speculators, packaging and securitizing credits and then selling them off, wholesale or retail, and extracting fees at every step along the way. And, much of this paper is even more opaque to bank examiners than its counterparts were in the 1920s. Much of it isn't paper at all, and the whole process is supercharged and automated formulas."

To the Victor goes the spoils - burp! It's lonely at the top, but you eat better!

2008 - Citigroup. The repeal (Clinton's Financial Modernization Bill) of FDR's Banking Act - was responsible for the creation of Citigroup as an all-purpose financial supermarket and too - big- to fail banking marvel..(much like the unsinkable Titanic?). Investment bankers lobbied for thirty years to repeal the Glass-Steagall Act, which separated commercial banking from its investment house cousins. Wall Street hated the law but failed year after year to win repeal. The problem was always the Democrats (since Republicans were supporters).

In enters a reincarnation of our old carnival snake oil salesman. Bill Clinton delivered his 'New Democrat Party' with a lot of the usual scripted rhetoric. Meaningless made up words. The combination of insurance, investment banking, and old-line commercial banks, have multiplied the conflicts of interest within banks, despite so-called 'firewalls'. Much like Enron, placing some deals in off-balance sheet entries did not insulate Citigroup from losses in its swollen subprime housing lending. The bank (Citigroup) has so far written off something like $15 billion and there's more to come. Ah - but meantime we're going to see these presidential canidates argue over who loves Blacks the most - or the miracle of Hillary's tears ! It's interesting that in the Neveda debates (Nov 15), when Hillary was asked about Citigroup and the subprime debacle she responded, that that she was concerned over these huge pools of money, and that Congress and the Federal Reserve need to ask questions. She went on to remark on how mortgages (subprime and conventional) were being bundled and sold to foreign investors. THE 64,000 QUESTION (yet to be addressed in these debates) was not asked: 'Senator Clinton, its a known fact, that Citigroup would not exist, except for President Clinton's repeal of FDR's 'Banking Act'. Would you (other canidates) not agree with the 1971 Supreme Court ruling, Goldman Sachs, and testimony by economists, that we have re-enacted the same conflicts of interest that were in place before the Great Depression and thus are doing the very same things that the Rothschild's and J.P Morgan were guilty of?' This is the question that has yet to be asked in any of these 'debates' (Republican or Democrat). The media and canidates blame the victims or wander off into some escoteric meaningless gibberish.

"Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men. They have no vision and where there is no vision the people perish". FDR First Inaugural Address

Rest assured we'll hear the same sorry blame game - with each party (both complicit in this debacle) them) blaming the other. Hillary is worried about repairing the image of America. Nobody is asking these candidates about the disasterous REPEAL of the Banking Act of 1933, which is leaving millions (not them) foreclosed on and losing jobs, investments, and pensions etc! When people are losing their jobs, homes, and children's futures; like their grandparents or great grandparents of old, they don't give a damn about 'image'. They are focused on having a roof over their heads and food to eat. The attention to the export of jobs in the U.S. did not develop until white - collar jobs began to evaporate along with manufacturing jobs with no replacement jobs. A U.S. company can hire a software developer in India for $6.00 an hour according to the McKinsey Global Institute. A data - entry clerk earns $2.00 an hour in India.

The repeal of FDR's Banking Act in 1999, with the promise of "increased wages and security for workers" sees auctions such as the one above (California) taking place from coast to coast. These folks (speculators) are benefiting from the hardships of others. The Penny Auction to help one's neighbor against the greed of banks and lenders, has been replaced with the thought of getting a 'real deal'.

Now in 2008, the promise of Bill Clinton (repeal of Banking Act) of rising wages and security for Americans is being realized with millions of layoffs and foreclosures. Not reported on the major news stations were the 10,000 + people showing up to apply for a job at Wal-Mart in Atlanta Georgia. Besides homeowners - renters are being put out in the cold with landlords being foreclosed on. "Remember you are just an extra in everyone else's play". FDR

Detroit (no debates held here) has been in a free fall for the past seven years. Hundreds of thousands in Michigan are without work. The drop out rate in schools is 70%. With foreclosures the highest in the nation (there's great competition) funds needed for local programs, schools, etc, are unavailable. No tax revenue. Per usual, you'll hear the victims being blamed, not disreputable bankers. If only they hadn't asked for a living wage (to keep up with inflation). If only they (auto workers) would work for Third World wages they wouldn't be out of work. Meantime the CEOs (corporate) of these echoing plants make 400X that of the ordinary worker. Their pensions aren't stolen. The golden parachutes they receive are in the multi - millions (even if they have brought their company to ruination). Hotels, office buildings, and thousands of homes are boarded up in Detroit. Meantime hundreds of thousands are homeless or forgotten in noxious formaldehyde FEMA trailers. Go figure?

McCain has told those out of work - "The jobs are never coming back". John, whose wife's trust, recently purchased them a $5 million exclusive condo in Phoenix, hasn't got a clue of the suffering and fear of these folks. His advice, "Go back to school and get that college degree - get some job retraining". John, busy trying to catch the brass ring, neglected to tell folks that President Bush has cut funding for job re-training by one billion dollars (amongst many other domestic programs). Bush Budget - AFL-CIO, Mike Hall. Thankfully for John, after divorcing his first wife, when his salary was a mere $45,000, he married an heiress. No job retraining for him. What John is oblivious to, is the fact that thousands of college graduates (with several degrees) are looking for work. Duh - like Wall Street. How one secures a college degree living in a shelter -tent - car or FEMA trailer, miles from nowhere (in cornfields) beats me?

C. Robert Kuttner writes in Friendly Takeover that Goldman Sachs, which Rubin left to join Clinton, was a prime underwriter of Mexican bonds both before and immediately after the passage of NAFTA, as Jef Faux points out in his book, The Global Class War.

Goldman was also the investment bank that underwrote the privatization of the Mexican national phone company, Telmex, in the late 80s.

After NAFTA created a gold rush of foreign money into Mexico, enriching Goldman Sachs and its clients and triggering an unsustainable speculative boom followed by a crash, Rubin promoted the bailout of Mexico that made foreign bondholders whole.

A little-noticed provision of NAFTA permitted foreign banks to acquire Mexican ones. In 2001, Rubin, back in the private sector, negotiated Citigroup's $12.5 billion acquisition of Mexico's leading bank, Banamex.

Rubin's crowning achievement was the repeal of the 1933 Glass-Steagall Act, which had separated largely unregulated and more speculative investment banks like Goldman Sachs from government-supervised and insured commercial banks like Citi, which play a key role in the nation's monetary policy.

Glass-Steagall was designed to prevent the kinds of speculative conflicts of interests that pervaded Wall Street in the 1920s and helped bring about the Great Depression (and reappeared in the 1990s).

Glass-Steagall was steadily weakened by regulatory exceptions under three administrations going back to George Bush Senior. The premise was that tearing down the regulatory walls would promote competition. But the effect was to create greater concentration and renewed opportunities for insider enrichment.

Financier Sanford Weill gradually assembled the empire of insurance, commercial-banking, and investment-banking pieces that ultimately became Citigroup, helped by indulgent regulatory policies promoted by Federal Reserve Chairman Alan Greenspan and Rubin. When Congress formally repealed Glass-Steagall, in November 1999, the act was termed in some circles the "Citigroup Authorization Act." Rubin had stepped down as treasury secretary that July. His new job, announced in late October, was chairman of Citi's executive committee. Rubin's initial annual compensation was around $40 million.

As a top Citigroup executive, Rubin uses his unequaled Democratic contacts to resist reregulation. In a recent interview, I asked Rubin whether he saw any need for tighter regulation of hedge funds, the massive, nominally private investment funds that enjoy a wholesale exemption from the system of financial disclosure that has kept financial markets tolerably transparent since the New Deal.

"I don't know why you would single out hedge funds," Rubin replied, in a sincere tone that suggested genuine puzzlement at the question.

Why, indeed? Citigroup has hedge-fund and private-equity subsidiaries, lends to hedge funds, places trades for hedge funds through its brokerage affiliates, and works with hedge funds through its investment-banking arms.

"There is an immense [regulatory] cumbersomeness that we've created in corporate America," Rubin added. "It's not just that it's costly; it's the deterrent effect that it's created on people's willingness to take risks."

So how are Bob Rubin and Rubinomics positioned for 2008? All too powerfully, one suspects.

The Hamilton Project will continue to turn out centrist policy papers trying to signal boldness with scant resources. Rubin will continue promoting his grand bargain to cap social insurance, raise taxes, offer token benefits, and further liberate global private capital.

He will continue to have unparalleled influence with Democrats, and to receive an adoring press.

In presidential politics, Rubin is personally close to Hillary Clinton, but this trader covers his bets. His son, Jamie Rubin, is a major Wall Street fund-raiser for Barack Obama. His former deputy chief of staff, Karen Kornbluh, is Obama's chief domestic policy adviser, and Rubin is also close to Obama's chief of staff, Steve Hildebrand, who used to hold the same position for former Senate Democratic Leader Tom Daschle, another Rubin ally.

D. William Engdahl writes in The Financial Tsunami and the Evolving Economic Crisis: Greenspan’s Grand Design that Goldman Sachs was a prime contributor to the Clinton campaign and even sent Clinton its chairman Robert Rubin in 1993, first as “economic czar” then in 1995 as Treasury Secretary. Today, another former Goldman Sachs chairman, Henry Paulson is again US Treasury Secretary under Republican Bush. Money power knows no party.

Dow Jones Market Watch commentator Thomas Kostigen, writing in the early weeks of the unraveling sub-prime crisis, remarked about the role of Glass-Steagall repeal in opening the floodgates to fraud, manipulation and the excesses of credit leverage in the expanding world of securitization:

“Time was when banks and brokerages were separate entities, banned from uniting for fear of conflicts of interest, a financial meltdown, a monopoly on the markets, all of these things.

“In 1999, the law banning brokerages and banks from marrying one another — the Glass-Steagall Act of 1933 — was lifted, and voila, the financial supermarket has grown to be the places we know as Citigroup, UBS, Deutsche Bank, et al. But now that banks seemingly have stumbled over their bad mortgages, it’s worth asking whether the fallout would be wreaking so much havoc on the rest of the financial markets had Glass-Steagall been kept in place.

“Diversity has always been the pathway to lowering risk. And Glass-Steagall kept diversity in place by separating the financial powers that be: banks and brokerages. Glass-Steagall was passed by Congress to prohibit banks from owning full-service brokerage firms and vice versa so investment banking activities, such as underwriting corporate or municipal securities, couldn’t be called into question and also to insulate bank depositors from the risks of a stock market collapse such as the one that precipitated the Great Depression.

E. Bertrand Benoit and James Wilson write in Financial Times on May 15, 2008: "Global financial markets have become 'a monster' that 'must be put back in its place', the German president has said, comparing bankers with alchemists who were responsible for 'massive destruction of assets'. In some of the toughest comments by a leading European politician since the start of the subprime crisis, Horst Köhler - a former head of the International Monetary Fund - called for tougher regulations and the reconstruction of a 'continental European banking culture'... 'The complexity of financial products and the possibility to carry out huge leveraged trades with little own capital have allowed the monster to grow . . . also responsible [is] the grotesquely high compensation of individual finance managers...' Bankers 'have made huge mistakes', Mr Köhler told Stern magazine... 'I am still waiting for a clear, audible mea culpa. The only good thing about this crisis is that it has made clear to any thinking, responsible person in the sector that international financial markets have developed into a monster that must be put back in its place,' Mr Köhler said... The German president's spectacular attack reflects the broader feeling of contempt among German politicians towards bankers since the start of the subprime crisis..."

F. PBS Frontline Research Staff provides A chronology tracing the life of the Glass-Steagall Act
Here is a complete history of The Act, from its passage in 1933, to its death throes in the 1990s, and how Citigroup's Sandy Weill dealt the coup de grâce.

IV. The Future
Chris Harman relates the George Soros quote that “credit expansion must now be followed by a period of contraction because some of the new credit instruments and practices are unsound and unsustainable”.

And Chirs Harman relates that Nouriel Roubini of New York University’s Stern School of Business sees “a rising probability of a ‘catastrophic’ financial and economic outcome” with “a vicious circle where a deep recession makes the financial losses more severe and where, in turn, large and growing financial losses and a financial meltdown make the recession even more severe”.

I believe that soon the governmnet will provide a 'continental response' via the security and prosperity provisions of the SPP, where a state corporate combine of stakeholders appointed by the North American Competitiveness Council, the NACC, to respond to a disaster of its own making -- some type of 'financial emergency' steming from insolvent banks, KBE, Level-3 leveraged investment bankers, KCE, a failed commerical credit sector, COF, as well as the disaster of a depreciating dollar, $USD, and falling US Treasury Bonds, $USB, that has come via continually lower interest rates charged by the Fed to the banks and the facilities of TAF, TSLF, and PDCF.

V. Additional Reading
Central Banks, the Amero, and Bush's New Fed Proposals

I. Introduction
The run on the US dollar continued yesterday as the currency traders called both the Yen and the Euro higher, and the mortgage industry experienced a breakdown, this induced a sell off in the US stock markets. the Dollar fell to 72.94. Gold traded down 1% to close at $978. The gold ETF, GLD, traded down to close at 96.50.

The Mortgage Industry Breakdown is the 'genesis event' that will eventually see the sharp definition and formation of a North American Union, that is a continental-wide state-corporate combine, where the nation's leaders are sovereign over the Continent's people and resources.

II. Stocks Fell Sharply
All the major indices fell through long running consolidation triangles, the Dow 1.7%, the S&P 2.0%, and the Nasdaq fell 2.2% and the Russell 2000 3.3%.

Sectors falling the most were: Mortgage Reits 16.1%, Housing ITB 6.2%, Retail XRT 5.3%, High yielding equity PEY 4.0%, Real estate IYR, 4.6%, Banks KBE 4.2%, Reits RWR 4.0%, Capital market providers KCE 3.8%, Finance IYG 3.7%, Emerging markets EEM 3.4%, Consumer discretionary discretionary RCD 3.4% and BRICS BKF 3.2%.

The ProShares UltraShort ETFs exploded higher; for example, the UltraShort MSCI Emerging Mrkts ProShares, EEV, closed at 84.99 up 6.74%.

The EUR/JPY fell some from its recent high of 159 to 158.

III. The US Dollar Weaken Significantly
Statements by the ECB's Trichet, such as, "I see no rate cuts", propelled the euro to an all-time high against the dollar at $1.5372.

Non-resident Indians in Bahrain were last night urged to invest in gold, UK sterling or Euro to offset the losses they have suffered due to the weakening dollar.

IV. The Mortgage Industry Went Into Meltdown
Bloomberg is reporting that the mortgage markets are "utterly unhinged". Government sponsored Enterprises, GSEs, Fannie Mae, FNM fell 10% and Freddie Mac, FRE, fell 7%. The report from investment professionals in the field is that worries about defaults are now making lenders hesitant to extend credit, preventing the mortgage markets from functioning normally.

CNN is reporting that foreclosures hit an all-time high with over 900,000 borrowers are losing their homes, up 71% from a year ago, and a record number of home owners are behind on payments.

Associated Press is reporting that lenders to Carlyle Capital Group Ltd have begun to liquidate securities held in its $22 Billion mortgage-bond porfolio .

Merrill Lynch, MER, and Citigroup, C, both heavily intertwined with the mortgage industry fell 7 and 4.4% today.

Thromburg Mortgage, TMA, fell 52% after disclosed Wednesday evening that JPMorgan Chase & Co., JPM, issued a default notice after Thornburg failed to meet a $28 million margin call. That notice triggered cross-defaults on agreements Thornburg had with other lenders.

There is now a 'financial Chernobyl effect'.

Mike Mish Sheldon reports that equities used to secure repurchase agreements are typically very low, as low as three percent; this means that when the margin calls cannot be met, whole portfolios of assets are sold, if possible, at fire sale prices causing stock market sector meltdowns, especially in the financial, reits, real estate and banking sectors -- the ones I have been consistently recommending that one sell short.

And, MFA Mortgage Investments, MFA fell 22% leading a host of other mortgage investment companies awesomely lower as Paul J. Miller, Jr. of investmnent research firm, FBR, reports relating that the financial industry needs $1 trillion in permanent capital to help stabilize and improve the pricing of mortgage assets, but is unlikely to receive it.

Highly rated securities backed by non-agency mortgages -- such as alt-A, subprime and home equity loans -- are trading at about 25 percent below their face value, while spreads on agency loans -- mortgages that conform to Fannie Mae and Freddie Mac standards -- are trading at spreads not seen in more than 20 years.

Alistair Barr reports : '[Various asset classes] won't de-leverage at the same time, but they all will in the end.' says Andrew Chow of SCM Advisers. This de-leveraging initially focused on investors who were exposed to subprime-mortgage-linked securities. In recent weeks, it spread to Alt-A home loans, which are usually made to more creditworthy borrowers but require less documentation. But now investors holding safer, so-called agency mortgage securities -- backed by the government-sponsored enterprises Fannie Mae and Freddie Mac -- are being hit, too.

V. Investment Application
A. The fall of the U.S. Dollar today coupled with the Mortgage Industry Breakdown that Bloomberg is reporting, and that trader Tim Knight in his article Oedipus Wrecks is reporting today, is a watershed financial and economic event of greater scope and impact beyond the October 8th, Citigroup subprime bust, as there is now a complete unwinding of highly leveraged investments whose underlying basis is illiquid.

The Breakdown is a 'systemic failure' of epic economic import: it is the equivalent of a person having a stroke, or the equivalent of that terrible Chernobyl disaster.

It comes on the heels of the last three weeks of a municipal bond market breakdown where some 70% of the municipals are now failing to auction.

It will result in a further run on the U.S. Dollar, a sell of US stocks across the board, an unwinding of carry trades of all sorts globally, including the Yen Carry trade, which was seen in the BRICS, BKF, falling 3.2% today.

The Government Sponsored Mortgage Enterprises, the GSEs, Freddie Mac, FRE, and Fannie Mae, FNM, simply will not have have enough capital, nor can they be capitalized enough to continue functioning, as they are today: this though has tremendous social impact beyond my ability to put into writing and I leave it to others.

While US Treasury Bonds currently have a AAA rating granted by the rating agencies, some forward thinking is required: given today's Breakdown, and the fall of the U.S. Dollar to $72.94, I conclude, with like thinking from others, that U.S. Treasuries are going to soon experience a massive loss of value.

B. I encourage that one invest one's investment wealth in gold at Bullionvault.com; and that one buy gold with one's retirement wealth by investing in the gold ETF, GLD; and that one obtain margin credit
1) to sell the 30 Year US Treasury Bond,
buy RYJUX> 50%.
2) to sell the emerging markets; as now the Yen Carry Trades will finally start to unwind as there will be disinvestment from the BRICS, Brazil, Russia, India and China as well as the US Stock Market; we will soon see EUR/JPY that is FXE:FXY, fall from it's recent sky high 160 level.
buy EEV> 10%.
2) to sell the financial sector,
sell IYG and UYG> 10%.
3) to sell the reits and real estate sector
sell RWR and URE> 10%.
4) to sell the banking sector,
sell KCE and KBE> 10%.
5) to sell closed end municipal bond funds,
sell BTA, VGM and CXE> 10%.

C. Gold may be taking a rest from immediate price incrases. Gold should have risen higher today with the Yen and Euro but did not, possibly because oil is holding steay at $105; gold may fall towards its 50 day moving average before advancing up and over $1,000; chart of the gold EFT, GLD provided for your review.

VI. The Mortgage Industry Breakdown Is The Genesis Event Of A North American Union
Today's Mortgage Industry Breakdown is the 'genesis event' for for a future 'continental response' of security and prosperity action, that is implicit in initiatives that have already been undertaken by the working groups, of the Security and Prosperity Partnership of North America, the SPP.

One can read about the principles of North American Governance on the SPP.Gov website.

The effect of the SPP is a continental state-corporate combine, where the nation's leaders are sovereign over the Continent's people and resources; the initiation of the provisions of the SPP will be required to mop up and contain the 'systemic failure' of the mortgage industry.

When announced by the the nations three leaders, Bush, Fox and Martin, on March 23, 2005 at Baylor University, the SPP was envisioned to create a secure and prosperous North America homeland: "Through this Partnership, we will ensure that North America remains the most economically dynamic region of the world and a secure home for our people in this and future generations."

Since the announcement of the SPP, stakeholders -- ministers in government, and leaders in commerce, finance and industry have been coordinating in Summits and in working groups for three years now to provide the Trilateral Regulatory Cooperation Framework, -- the "Foundation Agreement" for unified state-corporate rule of the North American Continent, as well as to work out detailed and harmonized security trading, transportation and other corporate laws to address threats to the continent's security and prosperity; and now Exchange Magazine provides the Agenda for the upcoming Leader's Joint Meeting to be held in April in New Orleans

VII. Today's events were foretold long ago by John, Apostle of Jesus Christ
The Apostle John wrote from prison, on The Isle of Patmos about 90 AD, the Revelation Of Jesus Christ, which foretells those things which must shortly come to pass: meaning a series of events that once they begin, fall quickly into place one right after the other. Revelation Chapter 13 tells of three separate beasts which arise to sovereignly, meaning authoritatively rule and direct, mankind's activities

A. The Bible Prophecy of Revelation 13:1-4 tells of a sovereign system
The system which directs all of mankind's activities through seven institutions and ten regions of global governance; the regions replace sovereign nations and their constitutions; and institute principles of global governance.

The world's governments will fail in their banking seignority and their currencies will collapse: regional currencies will arise.

The seven heads symbolize mankind’s seven institutions:
1)Education,
2)Finance, Commerce and Trade,
3)Body Politic
4)Military
5)Religion
6)Media
7)Science & Technology

The ten horns symbolize ten regions of global governance.
These were called for by the Club of Rome in February 1974.

One of the ten regions of global governance called for is that of the North American continent; and was announced at Baylor University on March, 23, 2005 by the Continent's leaders, Bush, Fox and Martin as described above.

Image Of The Beast Of Revelation 13:1-4

B. Revelation 13:5-10 tells of a sovereign king, that is a monarch, who has sovereign power and authority to rule.
The global leader of Revelation 13:5-10 is knowable: scripture gives the information to identify him.
1) Dan 8:9 And out of one of them came forth a little horn, which waxed exceeding great, toward the south, and toward the east, and toward the pleasant land: a seemingly innocuous leader comes from the North and West, that is he comes from the Europen Union to Israel.

2) Dan 8:11 Yea, he magnified himself even to the prince of the host, and by him the daily sacrifice was taken away, and the place of his sanctuary was cast down: he, being Jewish, being of the tribe of Judah and of David, gains access to Israeli government and the Jewish Temple, takes away Jewish temple sacrifice, exalts himself to the level of the Messiah, and finally makes himself out to be The Messiah.

3) Dan 8:23 And in the latter time of their kingdom, when the transgressors are come to the full, a king of fierce countenance, and understanding dark sentences, shall stand up: He, being in the lineage of kings, uses this to claim kingship; and he is amongst the world's leading occultists.

4) Revelation 13:18 Here is wisdom; let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six: he is a man whose gematria when decoded, comes out numerically to be 666.

C. Revelation 13:11-18 tells of a sovereign banker
He is the seignior, meaning, top dog who takes a cut; he is also chief priest and awesome technocrat; he institutes a global seigniorage wealth and commerce system. Seigniorage means top dog bank note system, and comes from the Scottish and Bank of England financial system which was devised to maintain the value of currency.

The seigniorage system is based upon the "mark" which comes from the Greek word charagma meaning "etching in", or "tattoo upon", or "stamp", or "badge of servitude", which enables one to conduct economic activity, and which authorizes one to receive economic benefits; the mark will be required in order to buy or sell as per David Deschesne writing in A Mark in the Right Hand or in their Forehead, in his explanation of Revelation Chapter 13:16-17. All seigniorage comes and goes through him: all sovereign wealth funds, and banks report to him. There is no national seigniority, as sovereign nations and their constitutions are history, as principles of global governance working through regional economic and security pacts or agreements exist; and these serve as the basis for regional currencies.

I. Introduction
From Erin Conroy's Associated Press report New Day, New Lows for Dollar I conclude that a run on the U.S. dollar has commenced.

I suggest that one be long gold and short the 30 year US Treasury Bond as well, the emerging markets, the banking, financial, real estate sectors, the closed end municipal bond funds.

II. The U.S. Economy Has Gone On The Skids
Mr. Conroy reports a number of things; he refers to a Commerce Department report for the October-to-December quarter that shows that the U.S. economy grew at a scant 0.6% and a Labor Department that shows new applications for unemployment insurance benefits rose by 19,000 to 373,000 last week, more evidence that the general economic sluggishness is spilling over into the job market.

"With sentiment becoming increasingly pessimistic as to the outlook for the U.S. economy, it seems as if it will take a notable shift in sentiment if we're to see any real recovery," said Gary Thomson, head of sales trading at CMC Markets.

III. The U.S. Dollar Has Gone Over The Cliff
The dollar's decline, (the $USD fell to 73.72) will likely complicate the Fed's decision-making this year, according to Michael Woolfolk, senior currency strategist at the Bank of New York.

"Keeping the dollar steady will be a challenge, as slow global growth has taken away the attractiveness of the stock market and low interest rates have slowed international investments in bonds," Woolfolk said.

"The dollar is likely to remain weak until one of two things happen this year: Either there's a clear indication that the U.S. economy is on the mend, or the ECB is prepared to cut interest rates. At this point, both seem improbable."

While the Fed has cut rates to try to spur the economy and loosen the credit squeeze -- moves that also drive the dollar lower as investors seek higher yields elsewhere -- the European Central Bank has refused to budge.

The Euro, FXE, topped $1.50 for the first time since its 1999 introduction early Wednesday, then surged above $1.52 after markets took comments from Federal Reserve Chairman Ben Bernanke as a sign that yet more U.S. rate cuts are on the way.

Bernanke told Congress on Thursday that he is prepared to lower rates even as high oil prices heighten inflation risks.

On Thursday, oil settled at a record $102.59 a barrel in New York, and continued to climb in after-hours trading, spurred in part by weakness in the U.S. currency in which the commodity is denominated.

Rising inflation can reduce the Fed's maneuvering room in terms of revving up a slowing economy, since raising rates is usually a way to control inflation.

Bernanke said that "the economic situation has become distinctly less favorable" since last summer. But he stressed that the nation is nowhere near the stagflation situation that plagued the 1970s.

IV. A Higher Euro, FXE, Drove Both Energy Shares, XLE, And Oil, USO, Higher Today

V. The Overall Stock Market As Traded By The ETF,VTI, Turned Lower Today

VI. The Currency Traders Used The Higher Euro And The Higher Yen To Addict And Afflict
Stockcharts.com charts show that in November of 2006, the currency traders, gained control over the U.S. dollar, $USD, and turned it lower; and in doing so they gained control over the US Stock markets.
Since November 2006 currency traders have had economic sovereignty, and they always will have such.

The currency traders, have operated in both a cohesive and stealth mode, to punish the Federal Reserve for lowering the Central Bank interest rate charged to banks: but now they pre-empted, they lowered the boom, they acted decisively this week by working together to blast the Euro and Yen higher, and send the U.S. Dollar over the cliff.

The Russell 2000, IWM, is comprised of small US companies highly dependent upon a functional credit system and a solvent banking system, it's the 'financial canary' warning of dangerous investment conditions: it's weekly chart has now fallen to the 200 week moving average warning investors to get out of the stock markets.

The poor stock market investor, he has no idea as to what is happening to him; he has no idea that the currency traders are pulling his strings. I see three types of investors:

The Addicted Investor
He is the energy stock investor who enjoys a current 30% divergence over his financial sector peer.

The Gullible Investor
He is mentioned by Jan Allen who said: "O Gullible Investor, Who Has Bewitched You That You Should Not Embrace The Truth"?

I suggest that the media, the Fed Chief Bernanke, Treasury Chief Paulson, President Bush are all attempting to bewitch the investor; as exemplified from a joint White House News Conference today where they related that a recession is not seen on the horizon .... and the President said: "I believe that our economy has got the fundamentals in place for us to … grow and continue growing, more robustly hopefully than we’re growing now ... so we’re still for a strong dollar.”

Over the years of investing, I have always been amazed at the cavalier recommendations that many paid stock analysts present; here is one recommendation to hold long the market (simply look at this analyst's portfolio recommendations) even though the analyst sees the market whipsawing -- he suggests waiting to sell until later! Wow, how absolutely stunning! Those who follow this analyst's advice to wait to sell, are the 'gullible ones' being led off the cliff in Jan Allen's article!

The Pained Investor
He is like the one who is invested in the financial ETF IYF and lost 3 percent today.

VII. Dislocations Are Coming From A Weak Dollar
After reading the Gary Dorsch article The US Dollar is Sinking Into the "Stagflation" Trap, I "speculate" that we will see three outcomes of a weaker U.S. dollar:
1) Oil, chemicals, natural gas, and possibly other basic materials such as fertilizer and steel will be traded in Euros, Yen, or a basket of currencies on "bourse markets".
2) Americans are going to see an awesomely lower level of gasoline simply because the producers are unwilling to take U.S. Dollars, and because Americans will not be able to afford to go out on the market place and buy Euros or Yen for the gasoline they want to drive their cars.
3) The interest rate on U.S. Treasuries is going higher, and the value of Government Bonds is going lower.
4) A continental response will eventually come in response to the currency traders work of driving the Yen and Euro Higher, as well as in response to other unseen future economic challenges: this will end up in "stakeholders" marshaling the continent's resources and people under a framework of the provisions of the Security And Prosperity Partnership of North America, the SPP, and will result in the use of a continental currency, the Amero.

VIII. A Bear Market Investment Strategy Is Recommended
For the longest time, I have been providing the Resourceful Bear Internet Database Listing Of "Bear ETFs" and "ETFs To Sell"; and I provide it again today for 'bear market investment research'.

I encourage that one own gold at Bullionvault.com or in one's retirement account by investing in the gold ETF, GLD; and that one use margin credit
1) to sell the 30 Year US Treasury Bond,
buy RYJUX> 50%.
2) to sell the emerging markets; as now the Yen Carry Trades will finally start to unwind as there will be disinvestment from the BRICS, Brazil, Russia, India and China as well as the US Stock Market; we will soon see EUR/JPY that is FXE:FXY, fall from it's sky high 160 level.
buy EEV> 10%.
2) to sell the financial sector,
sell IYG and UYG> 10%.
3) to sell the real estate sector
sell RWR and URE> 10%.
4) to sell the banking sector,
sell KCE and KBE> 10%.
5) to sell closed end municipal bond funds,
sell BTA, VGM and CXE> 10%.

Throughout my life, I have taken investment maxims and print outs of investment articles, and posted them in my dining room; I rotate them much like stars in the heaven, which have served as navigational aids for sailors over the centuries, to prevent investment shipwreck.

I published professionally a number of articles in early February suggesting a short selling investment strategy:
Shares Of Investment Risk Manager Blackrock Fall Significantly Lower and also
Short Selling Opportunity in Stocks, Bonds .

IX. Personal Thoughts
I truly feel sorry for the American Sheeple -- the vast throng of people who have no idea of the financial decimation, and the Pyramidal Society that are coming.

Grace is the only remedy and balm for the sorrow and tragedy that is coming: I am grateful for the Sovereign One who is reigning supreme over all, and throughout all time, and in all circumstances, and who provides the 'Election of Grace'. The Ministry 'Grace To You', helps one understand God's Wonderful Grace.

X. Additional Reading
The U.S. Dollar Is Being Destroyed Lee Rogers

Just For Thoughts Charts by Boris

The Commander-in-Chef Cooks Up a Storm: Recipes for Disaster in Iraq by Tom Engelhardt and Frida Berrigan (This article has helped me see the tremendous amount of money that has gone outward to support a military industrial complex.)

Marine Exercise In Toledo, Ohio: An Attack On Democratic Rights by Charles Bogle (Soon the military complex mentioned just above, will be turned inward for state-corporate rule , and used in conjunction with the military, to secure the North American continent; the evidence of this is undeniable; and has been consistently reported in numerous independent media publications for about three years now.)

Vacate The Premises: Mayor To Marines, Leave Downtown by JC Reomdl reporting in the Toledo Blade (One of the purposes of this blog is to document that Ohio and Michigan, are " leading societal and economic indicators" -- those things that happen in the Rust Belt are cultural forerunners of things to come. Those thing which happened in Toledo Ohio, with the military just simply moving in, indicate what is coming in the very near future.

Leveraged Funds Rush To Sell Debt by Paul J. Davies
(This article has helped me see the wisdom of holding a short of the banking and real estate sector as banks and hedge funds are loaded with asset backed securities that are basically worthless)

The Fed Plans Monetary Inflation - Got Gold? by gjohnsit

Hear Me Now - Believe Me Later by Peter Schiff (The author addresses the naitivity, expectations, credibility, assumptions,and persuasions of our nation's leaders relating: "Having neither the will nor the means to confront our major economic challenges, Washington is instead hanging its hopes on words alone. This week, despite the clearest signs yet that the dollar is in critical condition, President Bush and Treasury Secretary Paulson tried to provide reassurance by once again invoking the name of the mythical “strong dollar policy”. Meanwhile across town, with the latest crop of inflation figures pointing to the greatest price surges in a generation, Fed Chairman Ben Bernanke tried to do the Administration one better by insisting that inflation expectations remained “well anchored”, and that stagflation was nowhere in sight.")

US Stocks Plunge Following Fed Chairman Bernanke’s Testimony Before Congress by Barry Grey (The author has gleaned facts from numerous economic reports which suggest a weakening dollar and a deteriorating economy: one should be invested bearishly).

Fed Chief Hints At More Rate Cuts (It was Fed-Speak that alarmed the currency traders and drove them to send the Euro and Yen higher: they had no choice as Mr. Bernankes actions of Central Bank's interest rate cuts serve to debase the US dollar

Ambac Bailout: The Wheels Come Off (The Financial Ninja provides this helpful chart of Volatility $VIX, which is a go signal for the bears to start short selling again. The Ninja says: "Just a friendly reminder, that the worst is not over, that in fact the worst is still ahead"; his analysis is loaded with lots of information that will warm the heart of any bear; and his web site address the unwinding of the Yen carry trade.

Who Is Blowing Bubbles In The Global Commodity Markets

Stockcharts.com Weekly Review (by Declan Fallon Ph.D. (The author scours the Internet to present the best the charts: its a bears visual delight here. He presents charts of many stocks, and sectors, and ETFs, falling through their consolidation triangles which has brought an end to the interest rate rally of this last week).

Bears Take A Swipe At The Market by Corey Rosenbloom (Author provides a number of helpful Dow charts going back over a period of time)

Gas Prices Soar, Posing a Threat to Family Budget, New York Times Reports by Jad Mouawad

Growth - Not Inflation - Remains the Fed’s Main Concern By Jason Simpkins (When one reads Mr. Simpkins report, one can see the total disconnect between the FOMC and economic reality. I have to wonder if the FOMC is on a course to actual destroy not help America!)

Fed Chief Sets Inflation On Back Burner (by Peter Coy)

Joe Reed's Chart Of The Euro Break Compared To The Dollar Breakdown from Declan J. Fallond's Sunday, March 02, 2008 Stockcharts.com StockPicks.

XI. Keywords
debasement, credible, BlackRock, Helicopter Ben, debased, Blackrock Long Term Municipal Advantage Trust, Van Kampen Trust for Investment Grade Municipals, MFS High Income Municipal Trust, insolvent banking system, insolvency, illiquid, chart, illiquidity, volatility move down