Sent: Saturday, March 01, 2008 9:41 PM Subject: An e-mail with Interesting Financial Information Central bankers and finance ministers from the world's top-10 economic powers huddled behind closed doors in Tokyo last weekend, trying to work out joint strategy to rescue the global stock markets from another possible meltdown. Roughly $6-trillion was lost on global stock markets in the on the of January triggered by the biggest financial crisis since the Great Depression, and a US housing slide, that could topple the giant US economy into recession. Central bankers from the United States, Japan, Germany, France, Canada, Britain, Italy, China, South Korea, and Russia, collectively control the money spigots in three-quarters of the world's $65 trillion economy. "We> are not yet at the end of the market crisis," warned Euro-group finance Chief Jean-Claude Juncker. "The corrections will drag on for a few weeks, or months. We have agreed in Tokyo that if there are irrational price movements in the markets, we will collectively take suitable measures to calm the financial markets," he said. Asked what type of collective action the G-7 might take during another stock market meltdown, Juncker said, "Whoever has a strategy should not lay it out. Otherwise it will lose its effect, if it is explained." Russian Finance Minister Alexei Kudrin hinted at a coordinated round of G-7 rate cuts. "Coordination of efforts between central banks on their refinancing Rates may soften the consequences of the global credit crisis, because this is the key factor supporting financial systems," he explained. Other weapons in the G-7's arsenal to counter a bear market for equities include brainwashing investors through the media, fudging economic andinflation data, inflating the money supply, managing the "yen carry" trade, and outright intervention in stock index futures, championed by the US "Plunge Protection Team." After surveying the global landscape, the G-7 warned, "Downside risks still persist, including further deterioration of the US residential housingmarkets and tighter credit conditions." Bank of Italy chief Mario Draghi added, "Risks are further shocks may lead to a prolonged recurrence of the acute liquidity pressures experienced last year. We face a prolonged adjustment, which could be difficult," he warned. Banks and brokerage firms around the world face $400 billion in write-offs of toxic sub-prime US mortgages, said German Finance Minister PeerSteinbrueck on Feb 11th. "The crisis that spread from the US property market to global financial markets may continue well into 2008," he warned. The US credit crisis is no longer just a sub-prime mortgage problem. Many prime loans made in recent years also allowed borrowers to pay less initially, but with higher adjustable payments in later years. With US home prices falling and lenders clamping down, homeowners with solid credit are also under the same financial stress as those with sub-prime credit. Over 40% of all mortgages issued from late 2005 to early 2007 are based on adjustable rates, so about $45 billion would reset each month this year. The expected tax rebates from Washington will cover less than two months of home payments. Wall Street fueled the growth of sub-prime lending by packaging $1.8 trillion of risky home loans into bundled securities, and then marketing them as high-grade investments. But with US mortgage foreclosures set to top 1 million this year and home prices falling at the fastest pace since the Great Depression, the same Wall Street investment banks who profited byputting buyers into properties they couldn't afford, are begging central banks and governments to manage the bust. In Chicago, futures contracts for the Case-Shiller Home Price Index in the 20-biggest US cities are 9.4% lower from a year ago, and the slide might get worse as $550 billion of sub-prime adjustable rate mortgages adjust upwards this year. The Fed's rate cutting spree since September, slashing the fed funds rate by 2.25%, might help by reducing the reset rate for many adjustable-rate loans. But US consumers are hobbled by falling stock prices, tighter credit conditions, high gasoline prices, and a soft labor market. Sliding home values are also eroding the equity US households can tap for cash at the same time banks are tightening credit, threatening the consumer spending that the economy needs to dodge recession. "Going forward, we will continue to watch developments closely and take appropriate actions, individually and collectively, in order to secure stability and growth in our economies," the G-7 said after their secret meeting. The big threat to US household spending is primarily focused on the slumping housing market, but a double-barreled assault can be disastrous, so if the US stock markets keeps sliding, it would probably tip the economy into recession. And a US recession could undermine the global economy, like tumbling dominoes, since the US consumer buys about 20% of the world's$14.5 trillion of exports. The Federal Reserve has been the most hyper-active G-10 central bank in pumping liquidity into the global markets, slashing the fed funds rate to a negative 1%, in inflation adjusted terms. The Fed "will be carefully evaluating incoming information bearing on the economic outlook and will act in a timely manner as needed to support growth and to provide adequateinsurance against downside risks," Fed Chief Ben "B-52" Bernanke told the Senate Banking Committee on Feb 14th. The G-10 central banks will tolerate an upward creep in global inflation,because the pain required kicking the money printing habit is deemed too high. "Downside risks to the US economy are the most important factor for Federal Reserve interest rate policy for the time being," said Chicago Fed Chief Charles Evans on Feb 14th. "The Fed's focus needs to be on those risks, even though inflation has been running a bit higher than we would like," he said. G-10 central bankers are ignoring the deleterious side-effects of their super-easy money policies. The Fed and G-7 central bankers have injected hundreds of billions of dollars into the global money markets, fueling the "Commodity Super Cycle intensifying global inflation. Central bankers in Canada and the UK have joined the Fed's rate cutting spree. But the big surprise for G-7 central bankers might be how high commodities can fly, even in the face of a global economic slowdown. Since the Fed began lowering rates in August, the Dow Jones AIG Commodity Index has jumped +22% to a record high of 200-points, while the MSCI All World Index, measuring the top-43 stock markets, has tumbled 7-percent.

Commodities have historically been regarded as wildly volatile and risky, but since 2006, crude oil, gold, copper, silver, platinum, cocoa, and grains have soared, hitting record highs, and have trounced returns in the Mis-managed G-7 stock markets. A remarkable run-up in prices of wheat, corn, oil seeds, rice, and dairy products, along with sharply higher energy prices, have been blamed onsupply shortfalls, strong demand for bio-fuels, and an inflow of $150 billion from investment funds. From a year ago, Chicago wheat futures have soared +120%, corn +20%, and soybeans are +80% higher. Rough rice is up 55%, and platinum touched $2,000 /oz, up 80% from a year ago, while US cocoa futures hit a 24-year high. In agricultural commodities, there are supply constraints in terms of the amount of arable land available. There are huge shifts in demand from the emerging economies, where populations are moving to cities, and incomes are rising, and changing dietary patterns. Entering energy into the foodequation, the surging ethanol industry has put a squeeze on the corn market, causing prices to be demand driven. Bio-diesel traders are looking at soybean and vegetable oils. Fund managers are pouring money into commodities across the board as a Hedge against the explosive growth of the world's money supply, and Competitive currency devaluations engineered by central banks. Wheat had climbed nearly 10% since the beginning of the year, hitting an all-time high of $11.50 /bushel, as investment funds kept buying futures with US wheat supplies at the lowest level in 60-years. Because most global commodities are traded in US dollars, the Federal Reserve has a special role to play in defending the value of the US Dollar in the foreign exchange markets. On Dec 27th, Hu Xiaolian, director of China's Foreign Exchange wrote, "If the US federal funds rate continues to fall, this will certainly have a harmful effect on the US dollar Exchange rate and the international currency system," Hu wrote. Central banks are flooding the markets with paper, and nobody takes the Dollar, the Euro, the yen, or the pound seriously. Investors are turning to gold because it is the only true store of value. The Arab oil kingdoms and Asian exporting nations are importing inflation through their currency pegs and dirty floats, but their patience with the US dollar is near the snapping point. OPEC may abandon the US dollar for pricing oil and adopt the Euro, said OPEC Secretary-General Abdullah al-Badri on Feb 8th. "Maybe we can price the oil in the Euro. It can be done, but it will take time. It took two world wars and more than 50 years for the dollar to become the dominant currency. Now we are seeing another strong currency coming into the frame, which is the Euro," said Badri. The US Treasury and the Fed are risking a disastrous replay of the 1970's, when high oil prices fueled double-digit inflation. Every time the Fed lowered rates to boost job growth, inflation took off, causing a vicious price spiral. The Fed let inflation rage for so long that it took a strict monetarist approach, adopted by Paul Volcker in 1979 to finally defeat inflation. However, the cost of subduing the inflation monster was a deep recession, with unemployment hitting 11% in 1982. Excessive monetary accommodation just takes the economy from bubble to bubble to bubble. This time around, the Fed's devaluation of the dollar, based upon Mr Greenspan's 2001-02 blueprints, has unleashed the biggest wave of commodity inflation seen since the 1970's. Bank of England follows in Fed's Footsteps with 1.5 million adjustable rate mortgages due to reset in the UK this year, the Bank of England has joined the Fed's money printing orgy. On Feb 7th, the BoE lowered its key lending rate by a quarter-point to 5.25%,following a similar cut in December. Pressure has increased on the BoE's Monetary Policy Committee to slash borrowing costs, even as soaring energy and food bills are driving inflation higher. Britain's factories are facing the strongest input price pressures on record and are ramping up prices to compensate, but that didn't stop the Bank of England from lowering its base rate to 5.25% last week, to shore up the Footsie-100 stock index. And there is little sign that UK price pressures are set to ease with the cost of raw materials surging 18.9% from a year earlier, the fastest rate in 22-years. UK producer prices are surging at an annualized 5.7% rate in January, a 16-year high, not surprising, given the bullish trends in the global commodity markets. The price of imported food into the United Kingdom rose by nearly 15% in the past 12-months. But the bigger fear haunting the BoE is that weaker growth will undermine housing and stock prices, puttingfurther pressure on bank balance sheets, and prompting a further tightening in credit conditions. On Feb 13th, the BoE projected an economic slowdown to zero percent in the first two quarters of 2008, with a high probability that the UK economy will contract in at least one quarter. BoE chief Mervyn King's message was blunt. "Tighter credit conditions will bear down on demand, while rising energy, food and import prices will push up on inflation. Both developments are now more acute than in November," he warned. Mr. King says the BoE is powerless to counter surging commodity prices, which he believes "will result in a genuine reduction in our standard of living. However, there is no point in us going mad and pretending it is

sensible to double interest rates in order to bring inflation back to target in the next six months," he argued.

Instead, King thinks that slower growth over the coming year will "reduce pressures on capacity" and bring inflation down to target towards the beginning of 2009. "The Bank of England needs to stop worrying about inflation and cut interest rates to prevent a sharp slowdown in growth," said BoE policymaker David Blanchflower on January 27th. "It's essential that the BoE get ahead of the curve, as the current level of UK interest rates are restrictive. Evidence from the housing and the commercial property market is worrying. It is time for the MPC to lead not follow. Worrying about inflation at this time seems like fiddling when Rome burns," he declared Herein is the crux of the "Stagflation" trap. Lowering interest rates to bolster the local economy can backfire by igniting faster inflation, and erode the purchasing power of local citizens. But the BoE has been destroying the purchasing power of UK citizens for years, by inflating the British M4 money supply, up 12.4% from a year ago. Gold has risen by 110% against the British pound from four years ago, and is a proven vehicle for protecting asset wealth from abusive central bankers. To ease the plight of its exporters, the BoE engineered 10% devaluation of the British pound, from a 26-year high against the dollar in November.Britain's goods trade deficit with the rest of the world ballooned to a record at 87.4 billion pounds ($170.4 billion) last year, up 10% from 2006. The UK's current-account deficit widened to 5.7% of gross domestic product, the highest of G-7 nations. But a weaker pound also exacerbates Britain's inflation problem, by lifting import prices. "The BoE needs to balance the risk that a sharp slowing in activity pulls inflation below target against the risk expectations keep inflation above target," the BoE said. Given the choice of defending the purchasing power of the British pound or rescuing the housing and stock market, the BoE will eventually show its weak hand, and lower its interest rates further, spinning its citizens on the treadmill of inflation.

The global economy is falling apart all around us. We can expect a continued rise in the price of gold and silver as it is becoming increasingly apparent that the Federal Reserve, the U.S. government and even Alan Greenspan are doing everything they can to destroy the value of the U.S. Dollar.

In fact, the policies currently being implemented by the establishment is criminal because by devaluing the U.S. Dollar they are indirectly robbing from the American middle class by destroying the purchasing power of every-one's bank accounts that are denominated in U.S. Dollars.

At this point it is becoming increasingly clear that the establishment wants a weaker U.S. Dollar considering some of the insane policies they are implementing and insane things that they are saying.

What makes this rise in precious metals particularly interesting is the fact that the IMF has been dumping gold on to the market and gold continues to move up in value. The manipulation of the gold market is starting to fail as is the policy of managing a slow decline of the U.S. Dollar without a parabolic rise in precious metals.

The rise in silver has been particularly spectacular rising around $1 in price yesterday and it shows no signs of slowing down. At this point we could easily see gold at $1,000 an ounce and silver at $20 an ounce within the next month or two. So why is all of this happening? Let's take a look at some of the news that has come out in the past few days. First, Alan Greenspan actually told Arab nations in the Gulf to drop their peg to the U.S. Dollar. He actually said that the reason why they have so much inflation in their economies is because they are pegged to the U.S. Dollar. Greenspan is essentially admitting that there is inflation built into the U.S. Dollar and that's why they are having problems withinflation. His statements also serve to undermine confidence in the value of the U.S. Dollar since many people pay close attention to what the former Federal Reserve chairman has to say. Even worse though, is that if these Arab nations decide to drop their peg to the U.S. Dollar this will further reduce demand for the currency. This will result in the U.S. Dollar continuing its move lower. It is certainly ironic that Greenspan who actually created this economic mess through his easy money policies in the early part of the decade is now encouraging other countries to move away from the U.S. Dollar. Greenspan has done everything he could to destroy the currency both while he was the Federal Reserve chairman and he's continuing to do it years after he Quit the post. Even when Greenspan was the Federal Reserve chairman all he did was increase the money supply and reduce interest rates whenever there was an economic crisis. Greenspan is a criminal because his policies are responsible for the current housing crisis and many of the other problems we are seeing with the economy today. It is disgusting that Greenspan would actually make statements that he knows will facilitate a further destruction of the U.S. Dollar. Second, the current Federal Reserve chairman Ben Bernanke shows no signs of reversing course and setting policies that will save the U.S. Dollar.Bernanke testified in front of Congress today and he indicated that they would continue to reduce interest rates to prop up the economy. This is also a criminal act. Bernanke would prefer to sacrifice the value of the U.S. Dollar just to make the stock market look as if it is treading water. It is much more destructive from a long term basis to destroy the monetary unit that the economy is based off of than it is to raise interest rates and defend the monetary unit. The Federal Reserve should be raising interest rates to defend the U.S. Dollar. This would cause an immediate economic slowdown but long term it would save the economy. Bernanke has decided to choose the wrong option and this could cause an inflationary collapse. Third, the FDIC is predicting that we are facing a crisis. An article from the Wall Street Journal revealed that he FDIC is actually bringing on more people to deal with future bank failures. They aren't hiring new people because it's a fun thing to do. They are bringing people on because they believe things are starting to spiral out of control. This is without question an ominous indication that we could be on the brink of a major collapse. Fourth, the government announced that they are lifting restrictions on Freddie Mac and Fannie Mae in terms of the amount of mortgages they are allowed to hold. As private banks fail, the government will need these two entities to take over more of these mortgages. This is another indicator that the government believes that we could see a ton of these private banks fail. Fifth, the Russians are going to slowly start moving their oil sales away from U.S. Dollars and into Rubles. This will further erode demand for the U.S. Dollar and continue accelerating its slide downward. This combined with the Iranian oil bourse which has recently come online is going to increase pressure on the value of the U.S. Dollar. The Iranian oil bourse trades oil and other commodities for currencies other than the U.S. Dollar. It is certainly interesting that we've seen a huge decline in the U.S.Dollar since the Iranian oil bourse began operations.

Sixth, we are beginning to see an escalation in food prices. In particular, the price of wheat has gone through the roof and there have been reports of panic buying only a monetary phenomenon but it is also the result of the fact that there are government subsidies for biofuels.

Biofuels are essentially the result of food being turned into fuel which means there is less food in the open market and this has resulted in the price of food moving up. The United Nations has already been warning of food shortages and there have been reports of food riots in different Middle East countries. This is something that could occur in the United States if the government continues to subsidize biofuels and the Federal Reserve continues to inflate the money supply. As scary as this is, these are just some of the lowlights over a few days of economic news. To summarize, these news stories indicate that the U.S. Dollar is being destroyed on several different fronts and this is resulting in gold, silver and other commodities going up in U.S. Dollar denominatedterms. We didn't even get a chance to talk about the phony tax rebate scam and the out of control spending by the clowns in Washington DC which are also contributing to this disaster. The U.S. Dollar Index has droppedsubstantially and we now see a situation where the U.S. Dollar is at an all-time low versus the Euro.

We are about to witness a financial calamity of epic proportions and the establishment shows no sign of wishing to implement policies to reverse this.

The end game appears to be the continued destruction of the U.S. Dollar which will allow the establishment to implement the North American Union and a regional currency which will completely undermine the sovereignty of the United States.

The crisis in the U.S. Dollar will be used to facilitate this phony solution which will give the big multinational corporations and central bankers even more power. The only way to survive this coming economic disaster is to buy physical Gold and silver. It also wouldn't hurt to stockpile ammunition, firearms, storable foods and survival equipment. This is a very serious situation.

We are going to see a substantial rise in gold, silver and other commodities and we should see a spectacular rise in the price of many junior mining stocks.

The U.S. Dollar is being destroyed through inflation and those who own precious metals will be rewarded as precious metals serve as a fantastic defense against the criminal central bankers that set these

criminal policies.