The frog evaporated, because it wasn't there in the first place. It was there even though it wasn't there, because when you accidentally think of largish blue frogs and your mind isn't focused, and you happen to have lived on Been-There-Done-That-Prime after the mental swap of time, The Blue Frogs would have been there even if they weren't, because they've been created even though they haven't been.

Looking to the distance again, he saw an enormous eye. At first, he ignored it, dismissing it as a reference to "Lord of the Rings" (The Prophet has read the books because he thought that a book with that name would sound cool, and wondered what it would be about), but when he noticed that the eye was looking at him quite irately, and was blinking, he pulled his sight back to himself, to see Zotzbrue and Byxebyte, looking somewhat aggravated, and a single, passed-out humanoid on the floor before them.


compiled by Dee Finney


8-10-08 - DREAM - I was in an old farm type  house, listening to the radio. There was a man talking about how much he liked his old car, compared to the new ones made these days; how much easier they were to take care of.

The radio show came to an end and I was just relaxing in the chair, when there was a knock on the door. It turned out to be the same man who had just been on the radio.

I told him I had just been listening to his show and how much I had enjoyed it.

He thanked me and sat down in a comfortable living room chair to talk to me and my husband.

Another knock came at the door, and a very large woman arrived with a huge ice chest full of food and cold drinks and she brought all her kids with her - they were of all ages including several infants.

She said she had come for the party.

I hadn't been told about a party.  Other people started arriving and I got very upset.  I had been told nothing about a party and I hadn't made any preparations for one, hadn't cleaned the house, washed my hair, put on nice clothes ... nothing.  I was very upset to be treated in such a way by whoever had planned this party, so I got up from my chair and left the house.

As I walked down the porch steps, one of the women's daughters followed me out the door and deliberately dropped two babies down the steps in front of me.  Both babies fell on their heads, and one baby's head snapped it's neck and it's face turned blue for a moment but then rolled over it appeared okay again.

That made me even more upset how they treated the children.  I then saw a larger baby and it couldn't hold its head up and the head just lolled around when it looked old enough to crawl and maybe even walk. I wondered if that baby had been dropped on its head too.

I felt very distressed.

Out in the yard, I crossed a short bridge over a narrow creek and entered the yard of the house of the large woman, figuring if she was at my house, I'd sit in her quiet house - out of the ruckus that was going on at my house.

When I entered her house, I was so grossed out, I didn't know if I could stand being there.

There were little blue frogs, green frogs, slugs, and snails all over the floor and I couldn't walk at all without stepping on the little creatures.

These are Blue Poison Dart Frogs

In the middle of the hallway sat a small man in a canvas folding chair. He looked right at me and said, "The blue frogs mean, "The Death of the Economy."

I looked at him and said, "They remind me of reptilians."

He looked back at me and said, "You aren't supposed to know about the reptilians, but since you mentioned it, I can tell you. The reptilians are in charge of this world and are taking over."

Just then a couple of really tall men came into the room and the short man stopped talking. He couldn't talk in front of them.

I wanted to know what the tall men wanted in that house and whether they were up to no good, but they seemed to be trying to separate the blue frogs from the green frogs.  It didn't seem to matter much, there were so many  of them and they were in every room.

The large woman and her kids returned home and she told me that since I had come to her home, she would have to feed me there.

I didn't really want to eat in her house because the blue frogs were in everything and a little one even flipped into my right eye momentarily and fell out again.

I was really disgusted and decided to go back to my own home again which didn't have any blue frogs in it on the other side of the little bridge.

From the bridge I looked back towards where the little man had been seated and the little man was gone, but on the chair itself was his name printed -   NARRATOR.

Then in the air, I saw the dates:

October   2
October   3
October   4
October   5
October   6
October   7
October   8
October   9
October 10
October 11
October 12
October 13
October 14
October 15

Editor's Note:  The blue frogs are 'poison dart blue frogs'.

Let's start the new Parliament with a poser. Exactly what is it with Tony Blair and blue frogs?

30 June, 2005
A frog
Has Blair got frogs on the mind?
When the prime minister announced election day all those weeks ago he was wearing a rather fetching red tie with blue frog motif.

Nothing particularly odd about that. Either he was doing it to win a bet or more likely, as any father will instantly confirm, because it was a present from one of his children - presumably whichever has the most well developed sense of humour.

But wait, what's this. The very same tie made another appearance on the day the prime minister was returned to Downing Street for his dreamt of historic third election victory.

Is this superstition, does the blue frog have magical powers, is there some hidden symbolism?

The most famous, or infamous, blue frog is the unsurprisingly named blue poison arrow frog found only in a remote area of the South American rain forest.

It is known as highly territorial, aggressive and, needless to say, poisonous to its enemies.

Or is there a more mundane explanation? Almost certainly.


In the center of the universe is a small blue planet about the size of Earth. It is said life began at this very part in space. For this reason it is said science and sorcery could come together without destroying laws and theories.

The planet was known as Eternia the smaller sister planet of Etheria which was conquered by Horde Prime and ruled by Lord Hordak.

Horde Prime set his sights on Eternia before but King Hiss proved to be too powerful a foe so he moved onto Etheria.

King Hiss ruled with an Iron fist of fear along with his 11,000 snakemen foot army. Until he came across two brothers a brave explorer and a brave sorcerer. The Sorcerer went in search for Eternias secret power while his brother stayed and built up a resistance against King Hiss.
The Sorcerer went to the center of Eternia where its is said its power was at its strongest.

Lenor discovered a great abyss a seemingly crack to the center of Eternia her self. While he slept he saw a vision and it was the 8 elders of Eternias past. He built a castle with the help of sand people who lived in the area known as the sands or time which connected to the Eternian desert. On his side however was The Evergreen Forest where his life was spared as he left his brother.

In no time the castle was built and a sword appeared through a doorway. A single sword that divided into two halves. A voice spoke to him. Before you are the swords of Eternia's greatest king and queen. They only can be used to protect Eternia. The ones destined for them have not appeared yet but one day will."

"Help us defeat the snakemen." "You wield the power of Eternia great sorcerer king and you will find your enemies not too taxing when courage

and knowledge is with you." "Lenor became in that instant King Greyskull champion of all of Eternia." "What happened storyteller?" "Well children he and his brother Mira who became the first King of Eternos fought and defeated the snakemen in one great battle."

"Orko! What happened to King Greyskull?." "Many say when his time came he vanished to join the elders and castle Greyskull has never been lived in again."

"But!" "No more stories today this old Trollan needs his rest."

The children leave the storyteller/ court wizard. "I like the Story of King Mira better." "Adam what brings you out too my humble street corner." "Man At Arms was worried." "As one can see not burn down anything." "If only i could get back too Trolla but no i stuck here with poor parlor tricks thanks too this strange place." Prince Adam was 17 years old and was fond of the old strange and often funny alien from the land of Trolla. "Orko ,you have lived here for a long time and you say no one lives in Greyskull." "No why do you ask."

"Dreams really that is all." "Ah well dreams come and go young prince it is the way of things." Orko conjurns his old kettle pot and Adam comes closer. "What are you doing?" "I am trying too make me energy elixer again. I am feeling my age more often these days." The trollan in a red cape tunic and hat who seemed to be made of wind eyes glowed red as he cast the spell.

"Suddenly the cloud became dark." "Aww! My too much black apple root it appears." Suddenly strange winged blue frogs fell to the ground and a large funnel came from the kettle." "Might want to keep your head down this could get nasty." Adam hangs onto a tree as high winds and ice sickles bombard the ground.

The skies soon clear. "Um wonder what went wrong." "um Orko I think I'll be going home now." "See its why i cannot live at the palace for no magic can be controlled anything can happen. Unfortunately is always happening to me."




Logical Reasoning and Limits to the Scientific Method
The scientific method is a rational, logical thought process that is used to figure out facts (the raw data) and sometimes truths (the actual meaning). All of the answers must be able to be proven.

  • Inability to Measure the very Distant Past.
    Things deteriorate and some processes might not be observable to us as changing and therefore fully measurable. Some examples are:
    • Processes that have a long life cycle.
    • The activity curve of some processes will affect what we observe at different times.
      In their earlier stages, some processes change along an exponential line, but as they get older, the activity starts to decay along an almost flat line. This will not be observable as a change in the later stages if you can only observe a small period of its final stages.
  • Senses. Our ability to recognize data to measure is limited by our senses. We assume that only what we can see, touch, hear, smell, taste and quantify are the whole set of collectable data.
  • What is Known. Our experiments are limited by what we know and what we believe is knowable. After all, from the outset we are only measuring what is observable and what we think is possible.
  • Technological Abilities. This affects our ability to make more precise tests and gather specimens that might be evidence.
  • Measurement of the Physical Universe. Our ability to measure and interpret what we measure is limited by our instrumentation (which we use to extend the limits of our senses).
  • Instrument Limitations. Our instrumentation is basically an enhancement of our senses. We therefore do not know what else is measurable and how to gather the data. Taking this into perspective, if everyone was blind and only blue frogs from a few square miles of the Amazon rain forest could see, we would be missing a large part of our world because we do not know that we are lacking something and we cannot deduce that this sense exists because we have not been able to hypothesize that it exists from things that are available to us. We could not guess the existence of color or of sight. Even now, knowing about color, it would be difficult for you to envision a brand new color. Anything you thought about would be an existing color.
  • Corroborating Evidence. Until we know most of the facts and how things really work, we are not even sure what else could be corroborating evidence.
  • False Assumptions. We assume that everything can be measured. We assume that we ought to be able to measure God if he exists. We assume that the scientific method is fool proof. We assume that our senses and instrumentation are adequate. We assume that we have the technology and the ability to solve these issues.
  • The Human Factor. Despite the scientific obligation to be loyal only to the facts, the reality is that politics and prejudice do override our thought processes. This is why universities are not funding research on a young earth. They are there to foster learning. They are not a church for evolutionists.
  • Scope. How can you tell that a law is universal when you have not traveled to all points in space and time, and you have not seen all scenarios under which it reacts. Such declarations are presumptuous.
  • Circular Reasoning. Using an unproven idea to prove itself or using an unproven idea as fact in another unproven idea. Circular reasoning (also called "reasoning in a circle") is the basis of two evolutionary concepts: "natural selection" and "survival of the fittest."

    Tautology. A "tautology" means the useless repetition of an idea in different words, or a statement that is true because it includes all possibilities. ("Either it will rain tomorrow or it will not.") So tautologous thinking is a related way to describe some of the logical flaws in circular reasoning.

    These last two points show problems with logic and reasoning.

Ultimately this method is based on our limited knowledge about what is proof, what is provable and how a fact can be verified.
Instead of endless philosophical discussions to prove a point, experiment becomes the final arbitrator of truth, a successful approach. The issue becomes a bit sticky when discussing origins. How do we test the theory of evolution? We do not have the luxury of having a miniature universe with aeons of time in the corner of a laboratory. So this leaves both evolutionists and creationists in the same boat. No absolute way to objectively test their assertions. No eyewitnesses. Both are left to propose a model and then compare it with nature for consistency.

Types of Evidence. In conducting experiments and gathering data and formulating proofs, there are several types of evidence available. Some are more trustworthy than others because they are more objective and less open to personal interpretation. These are the major types of evidence:

     Eyewitness. Testimony from someone or something that was actually there when an event occurred. This may seem to be the most reliable evidence, but sometimes under highly emotional state and depending on the length of time from the incidence to the recording of the testimony, the truth may not be as accurate.

    For example, if your eyewitness is human, people age and forget things and in cases of trauma, your mind may protect you from the facts. But something impartial and unemotional may record some of the facts but not all of the truth.

    For example, a video camera could show all the visual and audio effects, but they cannot record feelings and motives or previous history.
    Material Witness. A person who may have information relevant for solving a case.

     Hearsay Evidence. A potential eyewitness who cannot be cross-examined. Hearsay evidence consists of statements made out of court by someone who is not present to testify under oath. The problem with this type of witness is that people can lie or misinterpret the meaning of a message.

    For example, in considering ancient writings or descriptions about a topic - one cannot rule out the fact that these could be scientific observations, mythology, novels, stories for entertainment or religion, or if the account of the fact was influenced by popular culture or beliefs. Or if the interpretation of the artifacts is influenced by our desires, culture and beliefs.


    A type of hearsay evidence. These are facts you can guess by examining stories passed down from various people. These may not be eyewitness accounts. However, this does not tell you if the stories are based in reality or if it was crafted for entertainment or other purposes. Sometimes a true event is interpreted based on the people's religious beliefs or fears or knowledge of the world around them. These conclusions will often enter the stories as facts, but they are only the people's interpretation of the event. However, you can get certain information.
    • Similarities in stories from widely separated cultures could suggest that the story originated from one source to which they both had contact sometime in the past. This does not mean that the stories were real events. It only means that they may have one common origin.
    • Scientific observations that do not change perceptibly over the centuries, could give you a relative measurement of the amount of change or the cycle of the phenomena. For example, comets and other astronomical events.

     Testimonial Evidence. This is anecdotal evidence by an eyewitness or a recommendation because of personal experience. Currently most celebrity testimonals are not based on any experience but based on the reputation or public appeal of the presenter.

    Documentary Evidence. The eyewitness is a document in written or printed form. This document must be authenticated or have a trustworthy origin and chain of custody. Most legal documents are authenticated by signatures and eyewitnesses to the transaction. Anecdotal evidence may once have been documentary evidence for the ancient people. So the problem with this type of evidence is time. The more time has elapsed, the less confidence exists in their authenticity and veracity.

    The Torah and the Bible are treated as anecdotal documentary evidence that are useful for cultural amusement but not statements of fact. Because modern man chooses not to believe in God, they choose to believe that these document are false.

    Experimental. With this method one tries to reproduce the facts by creating a similar situation and measuring conditions before the experiment and after. If it succeeds you may have proven that under the conditions of your experiments that certain events can occur. However, although experimental evidence could show that certain actions can produce certain effects, it cannot prove that in the past this situation existed, especially if the situation is highly unlikely and never observable in modern times. If it were possible to conduct all possible experiments to rule out the impossible then we could say with certainty what happened.

    Rare natural processes observed in real time could also be counted as an experimental environment that is conducted by nature itself. They have the added testimony that this is a possibility, since it is not an artificial environment set up in a laboratory.
    Demonstrative Evidence. This type of experimental evidence illustrates a point through charts, graphs, maps, illustrations and reenactments. It tends to simplify complicated situations or illustrate and assist verbal testimony.

     Circumstantial. Examining what remains after the fact. The interpretation of facts based on the physical evidence found after the incidence has happened and the original participants are gone. There is a danger that we could use current thinking and understanding to interpret the data. This is because the interpretation of circumstantial data is based on assumptions, common sense and all known experimental data.

    Common Sense. At first this may seem to be emotionally based and possibly limited by our knowledge and flawed interpretations. But it is not a private interpretation. Common sense therefore, is helpful as an arbiter over all the forensic and experimental evidence because it is based on years of experience shared by every one. Whatever gives the expert witness the right to speak about complicated scientific evidence, also gives every man the right to speak about common everyday occurrences.

     Expert Witness. Experts sometimes utilize hearsay and routinely express opinions. Through training and experience, they are better qualified to form an opinion. However, their knowledge is limited by the limits of science and their own capabilities. They are at best interpreting forensic and circumstantial evidence.

    Scientific (Forensic, Direct, Real, Physical). This is the equivalent of a scientific eyewitness. It is based on the examination of physical evidence left behind. Based on our ability to measure certain materials and knowledge about its rate of change under certain conditions, or statistical information on its frequency of occurrence. we can make very good guesses about what is most likely to have occurred. But it still involves some degree of circumstantial evidence evaluation because we must still interpret the meaning of the scientific facts.

     Mathematical. Calculations that show the impossibility of events in the past conforming to current observations.

    Statistical. This can probably be viewed as "mathematical" forensic evidence. Given all the data, the calculations are based on how likely an event will occur. DNA is statistical forensic evidence. The flaw is, we may not have all the data. But from experience (common sense) we may infer that given certain sets of facts that are based on common everyday occurrences, that only a rare unlikely event could change the conclusion.




Visualize the Dow at 6,000

by Mike Whitney |
July 24, 2008
Last Wednesday, at an improvised press conference, George Bush gave what might have been the most comical performance of his eight year presidency. Looking like the skipper on the flight-deck of the Hindenburg, Bush tried his best to reassure the public that "all's well" with the economy and that everyone's deposits were perfectly safe in the rapidly disintegrating US banking system. Leaning lazily on the presidential podium, Bush shrugged his shoulders and said,

“My hope is that people take a deep breath and realize that their deposits are protected by our government. We're not seeing the growth we’d like to see, but the financial system is basically sound."

Right. "Breath deep" and chill out; no need to panic. One shouldn't let the long lines of anxious depositors who are presently trying to extract what's left of their life savings from the now-defunct Indymac Bank upset one's basic equanimity. The banking system is perfectly safe, you heard it from President Trickledown himself.

At the same time Bush was offering his soothing words on all the major TV news networks, Fed chairman Ben Bernanke was on the other side of Washington giving a decidedly grimmer assessment of the economy:

"The contraction in housing activity that began in 2006 and the associated deterioration in mortgage markets that became evident last year have led to sizable losses at financial institutions and a sharp tightening in overall credit conditions. The effects of the housing contraction and of the financial headwinds on spending and economic activity have been compounded by rapid increases in the prices of energy and other commodities, which have sapped household purchasing power even as they have boosted inflation. Against this backdrop, economic activity has advanced at a sluggish pace during the first half of this year, while inflation has remained elevated."

Keep in mind, that these two events were perfectly coordinated to take place at exactly the same time; 10:20 AM Wednesday. Quite a coincidence, eh? Just another masterful public relations coup engineered by the Bush PR team, the last functioning agency in the entire bureaucracy. To no one's surprise, the collusive media managed to divert attention from the impending financial firestorm long enough to lull the American people into believing that nothing is really wrong; the economy is just hunky-dory.

Fed-chief Bernanke again:

"The economy continues to face numerous difficulties, including ongoing strains in financial markets, declining house prices, a softening labor market, and rising prices of oil, food, and some other commodities....The deteriorating performance of subprime mortgages in the United States triggered turbulence in domestic and international financial markets as investors became markedly less willing to bear credit risks of any type....Many financial markets and institutions remain under considerable stress, in part because the outlook for the economy, and thus for credit quality, remains uncertain."

As Bernanke delivered one hammer-blow after another, our engaging Commander in Chief was busy swapping funny stories and rough-housing with his pals in the Washington press corps. The media confab turned out to be a typical Bush frat-party with plenty of back-slapping and hee-haws to go around.

"You had a question, Stretch?" (Ha, ha)

And that was that. Bernanke's candid and (frankly) scary assessment of the economy was dwarfed by Bush's diversionary palavering and bravado; another stunning victory for the White House spinmeisters. Even so, the Fed chairman's testimony should be dug up and examined by anyone who is interested in knowing how bad things really are so they can prepare themselves for the hard times ahead. (Find it here: Bernanke's Semiannual Monetary Policy Report to Congress)

Bernanke again:

"In the housing sector, activity continues to weaken...Home prices are falling, particularly in regions that experienced the largest price increases earlier this decade. The declines in home prices have contributed to the rising tide of foreclosures; by adding to the stock of vacant homes for sale, these foreclosures have, in turn, intensified the downward pressure on home prices in some areas....The declines in home prices have contributed to the rising tide of foreclosures; by adding to the stock of vacant homes for sale, these foreclosures have, in turn, intensified the downward pressure on home prices in some areas......Surveys of capital spending plans indicate that firms remain concerned about the economic and financial environment, including sharply rising costs of inputs and indications of tightening credit, and they are likely to be cautious with spending in the second half of the year."

The economic sky is quickly darkening and Bernanke made no effort to hide his concern. His testimony was as close to the truth as one gets in Washington where honesty is usually eradicated like a malignant tumor. In any event, it is worth wading through Bernanke's speech word by word even if it only reinforces one's belief that the economy is about to take a sleigh-ride through a deflationary blast-furnace which will ultimately result in the demise of Breton Woods, the disorderly replacement of the dollar as the world's reserve currency, and an end to the United States short-lived dominance as the world's lone superpower. The American Century has about run out of steam just eight years into the new mellenium. Bernanke's presentation confirms what the econo-bloggers have been saying for the past three years; the end is nigh, get your house in order.

Personal consumption is down, the labor market is softening, and food and fuel prices are soaring. Housing values are plummeting, wages have stagnated, and American households are more overextended, underpaid and stressed out than anytime in history. It's all bad. No wonder consumer confidence is at its nadir.


The next shoe to drop is the stock market. Its not that complicated either; when wholesale prices on supplies and raw materials go up, but businesses can't pass along those costs because consumers are already maxed-out, then corporate profits plummet and the stock market crashes down with the force of an avalanche.

Journalist Ambrose Evans-Pritchard summed it up like this:

"It feels like the summer of 1931. The world's two biggest financial institutions have had a heart attack. The global currency system is breaking down. The policy doctrines that got us into this mess are bankrupt. No world leader seems able to discern the problem, let alone forge a solution. The International Monetary Fund has abdicated into schizophrenia....My view is that a dollar crash will be averted as it becomes clearer that contagion has spread worldwide. But we are now at the point of maximum danger." (Ambrose Evans- Pritchard, "The Global Economy is at the point of maximum danger", UK Telegraph)

"Maximum danger", indeed. Stock market mayhem is just around the corner. Visualize the Dow at 6,000 and then hang on for dear life. The indexes will tumble and Wall Street will be reduced to Dresden-type rubble, nothing left but toxic fumes and twisted iron. By the end of 2009, the last few bulls will be driven out of the exchanges and onto the streets where they'll be slaughtered one by one. It won't be pretty.

According to Bloomberg News: "Investors worldwide are betting more than $1 trillion on a collapse in stock prices".

But no matter how bad it gets, the media will still bang-out its "Sunny Jim" market-forecasts while reiterating every mangled phrase and muddled thought from our alcohol-addled Dear Leader. The lines from the shelters, pawn shops and soup kitchens may stretch from the Golden Gate to the Statue of Liberty, but the perennially upbeat predictions of a "bottom in housing" or an "economic turnaround" will continue to blast from every media bullhorn in the nation. America's financial media is an never-ending source of baseless optimism and hogwash.

It's funny; while Bush was hosting his faux-press conference, live-footage was appearing on other media of fully-armed LA policemen being dispatched to the various Indymac locations. Their task was to remind the gathering of elderly "blue-hair" women and middle-aged white guys in Tommy Bahama T-shirts that any public display of outrage would be swiftly met with Rodney King-style justice. Hmmm. So now withdrawing one's savings from the bank is not only riskier; it's tantamount to committing a felony. My, how America has changed.

Just imagine the frustration of spending $5 a gallon for gas to drive to the local Indymac branch to get whatever is left of your savings only to get roughed-up by the local constabulary. Nice touch, eh?

Going to the bank? Don't forget the protective head-gear!

The truth is the banking system is built on a foundation of pure quicksand and its only a matter of time before the Bush's truncheon-wielding Robocops start tasering old ladies and gassing portly white guys for massing in front of the boarded up doors of their local bank. Move along, now.

Market Ticker's Denniger made this insightful observation about about the present condition of the banking system. He said, "Why does Paulson keep telling us that the banking system is sound every time he gets within 200' of a microphone? Maybe it is because the banking system is on the verge of all-out collapse, and he knows you could blow it over with a feather!" (The Market-Ticker)

It is worth noting that the demise of Indymac is expected to cost the FDIC around $8 billion of its meager $53 billion of reserves. 4 or 5 bank failures of equal size and the FDIC will be underwater, which is a serious problem since even conservative estimates expect bank failures to run into the hundreds. The Fed will be forced to monetize the debt, further weakening the dollar.

But Indymac is small potatoes compared to the liabilities of the two mortgage behemoths, Fannie Mae and Freddie Mac. Years of sketchy accounting, risky investments, abusive lending, and political cronyism have eroded the two Government Sponsored Enterprises (GSEs) balance sheets and pushed them to the brink of insolvency. If they fail, it will be disastrous for the US taxpayer who will be expected to guarantee $5.2 trillion of US residential mortgages, hundreds of billions of which was lent to borrowers who will likely default on their loans in the next few years. As the housing bubble continues to fizzle; Fannie and Freddie will face losses of $500 billion or more, forcing disgruntled foreign investors to ditch their bonds and make for the exits. When that happens, long-term interest rates will skyrocket and the ailing dollar will collapse in a heap. The Bush administration can't allow that to happen, which means that Henry Paulson will push for emergency funding from the congress (which he is doing now) so he can rebuild investor confidence and stop the hemorrhaging of foreign capital. Whether Fannie and Freddie are saved or not, it is bound to be a drain on the dollar which can only get weaker as deficits soar and confidence wanes. There's really very little chance the dollar will survive as the "international currency".

Economist Nouriel Roubini summed it up like this:

"The existence of a major part of the overall U.S. subsidization of housing capital that will eventually lead to the bankruptcy of the U.S. economy. For the last 70 years investment in housing –- the most unproductive form of accumulation of capital -– has been heavily subsidized in 100 different ways in the U.S.: tax benefits, tax-deductibility of interest on mortgages, use of the FHA, massive role of Fannie and Freddie, role of the Federal Home Loan Bank system, and a host of other legislative and regulatory measures.

The reality is that the U.S. has invested too much – especially in the last eight years – in building its stock of wasteful housing capital (whose effect on the productivity of labor is zero) and has not invested enough in the accumulation of productive physical capital (equipment, machinery, etc.) that leads to an increase in the productivity of labor and increases long run economic growth. This financial crisis is a crisis of accumulation of too much debt ---by the household sector, the government and the country –- to finance the accumulation of the most useless and unproductive form of capital, housing, that provides only housing services to consumers and has zippo effect on the productivity of labor." (Seeking Alpha, "Just How Terrible is Housing as an Asset Class? Roubini Weighs In")

Fannie and Freddie made a big mistake by shifting into mortgage-backed securities (MBS) in the 1990s. From 1997 to 2007, Fannie’s portfolio of dodgy MBS jumped from $18.5 billion to $127.8 billion by the end of 2007. The numbers at Freddie were even higher. Now they're caught in the same downgrading-spiral as the investment banks, with billions of dollars of assets steadily losing value every month. It's death by a thousand cuts. The losses have left the two GSEs cash-starved and searching frantically for new sources of capital to build their cushion. Regrettably, foreign sovereign wealth funds feel like they were burned in the Citigroup bailout and are no longer in the market for destitute US investment banks.

Here's "The Economist" shedding a little more light of Fannie and Freddie's creative bookkeeping:

"The companies have also been unwilling to accept the pain of market prices in acknowledging delinquent loans. When borrowers fail to keep up payments on mortgages in the pool that supports asset-backed loans, Fannie and Freddie must buy back the loan. But that requires an immediate write-off at a time when the market prices of asset-backed loans are depressed. Instead, the twins sometimes pay the interest into the pool to keep the loans afloat. In Mr Rosner’s view, this merely pushes the losses into the future." (The Economist, "The End of Illusions")

Nice, eh? Wouldn't it be great if guys didn't have to explain to their wives why they pissed away their paycheck at the race track? Apparently, it's okay for Fannie and Freddie; just keep paying the interest on bad loans and no one's the wiser. What a racket. This is the type of sleazy Enron-type accounting that goes unchallenged in Washington where everyone fudges the numbers to hide their losses from their shareholders or taxpayers, as the case may be. That's why the namby-pamby regulators at the SEC need to be replaced with a few knuckle-dragging Abu Ghraib interrogators. There's nothing going on at Fannie and Freddie that a set of leg-irons and a few lively dunks on a waterboard wouldn't fix.

THE ROAD TO PERDITION: Paulson's Scatterbrain Capitalism

Something has gone terribly wrong with the economy, but no one wants to say what it is. This is more than just a typical downturn in the demand-cycle or a temporary "rough patch". In fact, it's not a recession at all; it is a meltdown of the financial system. And it's obvious. The "deep pocketed" Federal Reserve is currently providing hundreds of billions of dollars through its auction facilities to the most craven speculators on the planet, the investment banks. These very same banks have no ability to pay that money back. Show me their revenues; show me their assets; show me their capital cushion which is calculated mainly in terms of "Level 3 assets" and which allow the banks to assign their own value to the bad paper that's overflowing from their vaults. Have you ever heard of anything more ridiculous? One blogger called Level 3 assets "mark to fantasy". He's right, too. It's all smoke and mirrors. So why are we letting crooks decide what their assets are worth?

True, a few of the investment banks just reported "better than expected" earnings, but no one on Wall Street is fooled by that baloney. The SEC changed the rules on shorting bank stocks just days before their earnings reports were due; another gift from Uncle Sam to hide the dirty laundry. Also, some of the banks have started extending their "write downs" from 120 days to 160 days, buying themselves a little more time to deceive their shareholders about the size of their losses. It's all one big swindle following another. The whole business stinks to high heaven and the Bush administration is right there in bed with them, snuggling up close and holding their hands.

If the public grasped the significance of the Bear Stearns fiasco, they'd understand how grave the situation really is. The technical details are irrelevant; don't bother with them. What IS important is that the Fed acknowledged that the investment speculators had so polluted the financial system with their toxic, unregulated garbage,(Credit default swaps) that if the transaction with JP Morgan flopped, the entire system would have imploded. Think about that. In other words, the legitimate, "Real Economy" is now inextricably lashed to a massive $500 trillion dollar unregulated shadow banking system that operates without rules, supervision or sufficient capital. Over the counter derivatives trading is a cancer that has spread to every part of the system and is devouring it from the inside. It's only a matter of time before the patient succumbs. That's what the Bear bailout really means; the rest is bunkum.

The banking system is broke, busted, penniless; and yet the Fed and the G-7 allow this comedy to persist like nothing is wrong. When will the American people wake up?

And, will someone please explain how free markets can exist when speculators are subsidized by the state, or when the risk is removed from risky investing? That's what it means when the Fed opens its auction facilities to the investment banks and brokerage houses. It makes no sense at all. Government "safety nets" are anathema to free market capitalism. "You pays yer money and you takes yer chances". That's finance capitalism; deal with it.

What we are seeing is a hybridized version of capitalism; "Paulson's Scatterbrain Capitalism"; a hodge-podge of taxpayer bailouts, government intervention and free market mumbo jumbo. It's a toxic mix on off-balance sheets operations, over-the-counter "unregulated" derivatives, dark pool trading, opaque hedge funds, dodgy Enron-style accounting, and complex, hard-to-pronounce debt-instruments wrapped up into one, cheesy, unsustainable shell game, managed by Harvard-educated flim flam men and backed by a 100% government guarantee. That's the system we're supporting with our tax dollars and that's the system that is dragging us headlong to ruin.

It ain't capitalism, my friend. It's a crooked system run by corporate carpetbaggers and banking scalawags who've shot the Golden Goose in hopes of keeping the larder at the cottage on the New Jersey coast chock-full of Dom Perignon and halibut fillets. They created this nightmare and they've doomed us all.

As long as we prop up the existing system, the economy will continue to flounder, unemployment will continue to rise, foreclosures will continue to soar, banks will continue to be shuddered, and the wobbly old greenback will continue its inexorable march towards Pesoville. It's time to clean house and we can start by firing Paulson.
Mike Whitney



A Dream About the Death of the Economy -

NOTE:  I didn't type this one until 7-8-09 - it corroborates the rest of the page.

5-26-07 - DREAM - I was in my New Berlin house and I looked out the window to the north and saw a huge bear dragging another huge dead bear across the yard.  The live bear had already started eating the dead bear in the back.

I ran to the door and got my kids inside, then I saw that the neighbors were having a picnic in the yard with their little kids so I yelled at them to get into their house because there was a killer bear loose right on the other side of the house.

They looked at me like I was nuts and just kept playing and eating like nothing was going on.

My husband had a big important business meeting at the house.  The man was already at the door - an older, balding round faced man with a grey suit.

My husband was in the bathroom and I heard the toilet flush, but I wasn't dressed for company, so I hid in the closet and held the door shut so nobody could open it.

Then I realized the door had a lock with a skeleton key on the inside and I slowly but silently locked the door with me inside.

I needed to find something decent to wear and it came to me that I knew why the bears were in the rampage was because I was wearing a bear coat.

So I took the bear coat off, but I still didn't know what to wear.

the some kids came to the door and could look right in through the window and see me and I didn't want them to see me so I crouched down into the corner in a pile of clothes just out of their sight.

At the same time, I heard a noise outside the window and a panel came off the wall to the outside.

There sat a little boy about age two, dismantling the building one screw at a time.   

But there was room to get past him, so I stepped outside and found myself on a city sidewalk and there was a man walking by, looking up into the sky and crying out -  "Jesus is coming,. Jesus is coming!"  and I had to chuckle to myself because I knew he wasn't.

Some other people came along and I said to them, "I don't know what's more painful - to believe something is going to happen and it doesn't, or to know something is coming and nobody believes you!?"

I then ran past them and ran back into the building so I could find a safe place to hide.

There was an open door so I ran inside and found myself in an apartment that had a bed with a pile of brown blankets on it - all messed up.

As I looked at it, the blankets morphed into a big brown bear and started to rise up alarmingly.

I ran back to the door and there was a big brown bear laying on the floor right in front of me.

I decided I couldn't run anymore, so I said to myself, "I'll just have to beat you down right where you are!

I grabbed a rolled newspaper from the floor and started beating the bear with the newspaper until he lay flat.

I then looked up and there was a big newspaper painted on the wall.

In one column, the headline said,  VICTOR and I laughed at the coincidence, then I looked at the column next to it and it said, "The ET raise taxes to the taxpayers!"

I knew that was bad for me too.

As I woke up, I heard Dr. Phil say in my right ear, "GET UP!" and immediately I heard a loud noise behind the wall at the head of the bed.  I thought it was the back door slamming but something wasn't familiar about the sound.  I wonder what fell by itself.

I then saw a bear and something stomped it flat as a pancake.  I saw an elephant and something stomped it flat as a pancake.

I then saw a red man and something stomped it flat as a pancake..

But I couldn't figure out how ETs could raise taxes.


Is the U.S. Talking Itself Into a Recession?


Denise Holtby, Reed Construction Data

In the wake of the subprime mortgage crisis, many are calling the U.S. economy a house of cards on the verge of toppling. In a conversation with CanaData economist Alex Carrick, however, I was reminded that every economy risks collapse, but in general, because everyone has a vested interest in keeping the cards upright, a crash is unlikely.

Worry over the subprime crisis and the possibility of recession prompted the White House to announce a plan last week to help struggling subprime mortgage borrowers keep their homes in the wake of escalating mortgage rates.

While the plan calls for a five-year interest rate freeze, there are two catches. The plan is voluntary for mortgage lenders and only those homeowners not currently in arrears are eligible to participate. Borrowers who were coaxed into borrowing against the equity in their homes by “teaser” rates and lax credit terms and have since fallen behind on their mortgages will not see any relief.

The announcement does not force mortgage lenders to offer interest-relief to borrowers either, but the Federal government is promising to take regulatory steps to make the mortgage industry “more transparent, reliable, and fair.”

But do moves such as this one — and all of the anxiety currently building over the state of the economy — risk making recession a “self-fulfilling prophecy”? It could.

According to Mr. Carrick, even though the U.S. economy still has a lot of momentum, doom-and-gloom news on the financial front risks pushing the U.S. economy into recession, even though employment numbers are strong, the stock markets are down only slightly and consumer confidence has been only mildly affected by all of the hand-wringing.

(For more about Mr. Carrick’s take on the avoidability of a U.S. recession, check out this article “Recession in the U.S. is Avoidable”.)

In an article entitled “What halts home price deflation? Fear of losing a bargain” Mr. Carrick foresees the housing market stabilizing in 2008, as does the National Association of Realtors. This outlook means that the housing market should no longer be a drag on the U.S. economy as 2008 progresses.

If the Fed lowers its federal funds rate by 25 or 50 basis points in January and the holiday shopping season turns out to be a healthy one, then it’s safe to say that rumors of the “death” of the economy are highly exaggerated.

Posted in Market Insights  


Money means responsibility and passive capital is the death of the economy; therefore must the flow of capital be assured by the government restricting accumulations.

 - The function of the government in an economic sense is the same as that of the heart pumping blood through the body.

- As much as each cell and organ in the body must be directly or indirectly connected and fed by the blood stream, must also each human being and institution be connected in the stream of money.

- Excluding people from the legal economy is forbidden, as outcastes will turn into criminals or madmen cherishing their own idea of economy.

Original file:
As the situation starts to get harder, more money will be spent and better 'offers' to encourage the orgy of consumption but everyone is starting to feel the friction burns, if the message for reduction in consumption does come it will garantue the death of the economy as we know it. While that may not be much of a suprise given the mess we have been blundering into it will cause serious problems.


The High Priests of The Globalization and Global Deceit:

During this chapter we'll take a cold look at the global debt which will teach us that the so-called rich nations are as much as indebted as poor nations. The sad truth is that Westerners are the world citizens who have been the most manipulated on earth. While they were raised with the idea that their countries were the beacon of democracy and freedom, they have been complicit in the plunder of the 3rd world - unwillingly. In the same time we'll see why the "Minimum Wage and Social Welfare" platforms were used as mere distractions.

Most of the people hate the word conspiracy because they hate to be taken as fools, but if conspiracies didn't exist, history books would reveal only blank pages. Didn't you ever try cheating on your taxes? ... Everybody conspires. It is the human nature to find the easiest ways to get what we want. Alas, sometimes doing so demands to resort to economic hit men and genocides. It is only when "they" know that "we" know, that "they" will start to behave.

Depressions and Wars:

This is very important and must be faced with much courage if we wish to end 70% of the world misery overnight. Yes, overnight. This is not an exaggeration at all. The death of any economy is the economy of death. Deep recessions and depressions generally mean wars, or in the lesser case social disruptions.

We'll take a look at the debt impact in the poor countries and analyze the debt components behind the build-up World War II, why poverty and economic gloom breed dictatorships, why the empire mentality is ethically erroneous and why every empire in history has gone up in smoke.

Lending Money For Wars

This is of course the way by which the crime is made in our name. We all want the same: peace and prosperity. Lending money for wars is a deadly game, enemies and friends change sides when they see it fit, all of which feeds conflicts of interest at the expense of the "little people". "They fight, we pay and die". The bottom line is that the Elite is a bunch of people who make the rules for themselves. They are not compassionate at all.

There is a way to make wars unaffordable though, but this truly depends on us, the citizens. First, you ought to grasp taxation's inner workings then restore the concept of lawful money. If history is any indicator, giving the government a blank check has always been a huge mistake. If we want "history to stop repeating itself", we must first get rid of our "bad habits”.



McCain's Economy Platform:
Big Tax Cuts, With Caveats

March 3, 2008

WASHINGTON -- Imagining how John McCain, the Navy war hero, would play the role of commander in chief has been easy. Imagining how John McCain, the policy maverick, would lead as chief executive of the U.S. economy has been tougher.

In a wide-ranging interview last week, Sen. McCain offered the most-detailed account to date of his thinking on economic issues.

The all-but-certain Republican presidential nominee cast himself as a defender of the Bush tax cuts he voted against, but added caveats to a "no new taxes" vow he made on a Sunday television talk show two weeks ago.

On Social Security, the Arizona senator says he still backs a system of private retirement accounts that President Bush pushed unsuccessfully, and disowned details of a Social Security proposal on his campaign Web site.

Sen. McCain said the Federal Reserve should cut interest rates now to bolster the economy, but added that as president, he couldn't be so explicit on monetary policy. "Presidents have to be careful so they're not perceived as putting undue political pressure on the Fed," he said. "So I would certainly be more careful than I am today."

With the U.S. economy softening, he said he might have "a couple of fireside chats with the American people because of what we see in the [consumer] confidence barometers." But he added that the most potent economic stimulus would be to assure Americans that taxes won't go up in the future and to "call for a meaningful -- and I mean meaningful -- approach to simplifying the tax code so that it's fairer and flatter."

Those who know him well expect that a McCain presidency would be hard to categorize -- a conservative populist who acts by instinct rather than economic ideology. For businesses, that could make him hard to predict; for opponents, hard to pin down. In his 25 years in Congress, the Arizona senator has defined himself on economic issues more by his adversaries than by overarching economic principle.

"Sometimes he sees excesses in government and sometimes he sees excesses in the corporate world, and both make him sick," says John Raidt, a longtime McCain policy aide.

As chairman or senior Republican member of the Senate Commerce Committee -- which oversees old-line industries such as railroads as well as businesses such as the Internet -- he has squeezed broadcasters to hand back valuable airwaves and cable companies to let consumers pay for individual channels, rather than having to buy an expensive bundle. Despite these fights, media industries now are among his biggest campaign contributors, realizing that even if he loses the presidency, he'll still have a big say in their businesses as a lawmaker.

But his congressional assignments haven't forced him to wrestle with broader issues of tax, monetary and Social Security policy.

Retirees' Nest Egg

A centerpiece of a McCain presidential bid in 2000 was a plan to divert a portion of Social Security payroll taxes to fund private accounts, much as President Bush proposed unsuccessfully. Under the plan, workers could manage the money in stocks and bonds themselves to build a nest egg and, at retirement, also receive reduced Social Security payments from the government. Proponents say the combination of the nest egg and government payouts could give a retiree more than the current system, but opponents say the change would undermine the Social Security system.

Sen. McCain's 2008 presidential campaign Web site takes a different view, proposing "supplementing" the existing full Social Security system with personally managed accounts. Such accounts wouldn't substitute for guaranteed payments, and they wouldn't be financed by diverting a portion of Social Security payroll taxes.

Mr. McCain's chief economic aide, Douglas Holtz-Eakin, a former head of the Congressional Budget Office, says economic circumstances forced changes concerning Social Security policy. Vast budget surpluses projected in 2000 evaporated with a recession, the Bush tax cuts and the cost of responding to Sept. 11.

As a result, the McCain campaign says the candidate intends to keep Social Security solvent by reducing the growth in benefits over the coming decades to match projected growth in payroll tax revenues. Among the options are extending the retirement age to 68 and reducing cost-of-living adjustments, but the campaign hasn't made any final decisions.

"You can't keep promises made to retirees," says Mr. Holtz-Eakin, referring to the level of benefits the government is supposed to pay future retirees. "But you can pay future retirees more than current retirees."

Asked about the apparent change in position in the interview, Sen. McCain said he hadn't made one. "I'm totally in favor of personal savings accounts," he says. When reminded that his Web site says something different, he says he will change the Web site. (As of Sunday night, he hadn't.) "As part of Social Security reform, I believe that private savings accounts are a part of it -- along the lines that President Bush proposed."

Sen. McCain says that as president he would start negotiations with Democrats to fix Social Security. The program's trustees say by 2041, projected tax revenues will cover only three-fourths of currently promised benefits.

On the Democratic side, the two contenders have been far from clear what they would do also. Sen. Barack Obama has said he would raise the ceiling on wages subject to the Social Security payroll tax to boost revenue, but he hasn't specified the size of the tax increase. Sen. Clinton calls for personal investment accounts on top of existing Social Security, similar to what the McCain campaign Web site suggests, but she hasn't laid out how she would fix the program's looming insolvency.

Fine Line on Taxes

On taxes, Sen. McCain is walking a fine line between courting keep-taxes-low Republicans while insisting he is the candidate of fiscal discipline. Two weeks ago, ABC's George Stephanopoulos asked him on "This Week" if he were a "'read my lips' candidate, no new taxes, no matter what?" referring to a pledge made by President George H.W. Bush, which he later broke. "No new taxes," Sen. McCain responded. "But under circumstances would you increase taxes?" Mr. Stephanopoulos continued. "No," Sen. McCain answered.

Asked in The Wall Street Journal interview to clarify, Sen. McCain softened that stance. "I'm not making a 'read my lips' statement, in that I will not raise taxes," he says. "But I'm not saying I can envision a scenario where I would, OK?"

Behind the scenes, his campaign is searching for ways to pay for Sen. McCain's tax proposals. In addition to extending the Bush tax cuts, the 71-year-old candidate would slash the corporate income-tax rate from 35% to 25% at a cost to the Treasury of $100 billion a year, estimates Mr. Holtz-Eakin.

In all, his tax-cutting proposals could cost about $400 billion a year, according to estimates of the impact of different tax cuts by CBO and the McCain campaign. The cost will make it difficult for him to achieve his goal of balancing the budget by the end of his first term.

To pay for the cut in corporate tax rates, Sen. McCain is considering eliminating some corporate tax breaks listed by a bipartisan tax reform panel appointed by President Bush, who ignored its report. The panel outlined different ways to change the tax code to spur U.S. competitiveness.

Among the candidates for elimination are a 2004 break for manufacturers -- written so broadly that it includes computer software makers, construction firms and architects -- a low-income housing credit, and tax breaks for life-insurance companies, credit unions and exporters. Undoing those breaks would raise a maximum of around $45 billion a year, still leaving a big hole.

"There could be a fairer, flatter tax proposal that I might embrace, that you might look at the minutiae of it and say, well, that's going to increase somebody's taxes," he says. "But they eliminate the inequities, the complexities, and all of the things that characterize our tax code today."

Sen. McCain began to prepare himself for campaigning on economics late in 2005 when Mr. Holtz-Eakin and conservative Kevin Hassett, a veteran of the 2000 McCain campaign, started sending him four-page weekly briefing papers on tax reform, trade and other issues. Sen. McCain also consults with business and political leaders including Cisco Systems Inc. Chief Executive John Chambers; former Republican Texas Sen. Phil Gramm, a deficit hawk; and former Republican vice presidential candidate Jack Kemp, who hails from the deficits-don't-matter side of the party.

Sen. McCain rarely makes a public appearance without supporters with strong business or economic pedigrees, such as former Hewlett-Packard chief Carly Fiorina or Mr. Kemp. At town-hall meetings earlier in the campaign, he sometimes turned over economic questions to them.

As a presidential candidate, Sen. McCain has faced hostility from the political right because he voted against two rounds of Bush tax cuts. "I voted against the tax cuts because of the disproportional amount that went to the wealthiest Americans," he said on NBC's "Meet the Press" in January. He also said the tax cuts weren't matched by spending restraints, as he had wanted.

Now, given the worsening economic situation, he says it's important to fight to extend the tax cuts, which are set to expire in 2010.

While other candidates were scrambling in January to put together stimulus plans to boost flagging consumer spending, he proposed long-term tax cuts which could take years to come into law. "In the shorter term, if you somehow told American businesses and families, 'Look, you're not going to experience a tax increase in 2010,' I think that's a pretty good short-term measure," he says.

Sen. McCain also favors making corporate tax credits for research-and-development permanent and eliminating the alternative minimum tax. The AMT was designed years ago to keep the wealthy from using deductions to avoid paying taxes altogether, but, unless altered, will ensnare a growing number of middle-class taxpayers.

To show he can control spending, Sen. McCain cites his long record as a spending hawk, who battles sweetheart deals between the Pentagon and defense contractors, as well as projects that lawmakers of both parties cram into appropriations bills -- "earmarks," in budget lingo.

Congressional earmarks total $18 billion a year, according to the Taxpayers for Common Sense, a Washington, D.C., research group -- and each has a member of Congress who will ferociously fight to keep that spending going. Mr. Holtz-Eakin, the McCain adviser, says that earmarks actually cost $60 billion a year, counting programs that started in earlier years and get funded year after year.

Another source of spending cuts eyed by the McCain campaign is a White House hit list of underperforming or redundant programs. But again, the numbers are relatively small -- $18 billion annually -- compared to the cost of Sen. McCain's tax plans, and the programs include housing loans, education grants, and water projects popular with Congress.

The uncertainty involved in estimating the future costs of wars in Iraq and Afghanistan also could make it hard for him to make his budget targets. The CBO estimates spending on the wars at about $145 billion this fiscal year, which ends Sept. 30.

Sen. McCain's admirers say that by running for president as a spending hawk, he will tilt the politics of Washington in favor of spending restraint, in the same way George W. Bush's promotion of tax cuts during the 2000 campaign helped him build momentum for his plan. "If he proposes [a balanced budget] and doesn't get it, that doesn't mean it won't have a positive effect of having a lower series of deficits that there otherwise would be," says Barry Anderson, a former senior budget officer during Republican and Democratic presidencies.

Taking On Industry

Another question is how Sen. McCain would regulate business. He has fought with the drug industry to allow the importation of pharmaceuticals from Canada and permit the government to negotiate over drug pricing; tangled with broadcasters to force them to hand over transmission channels so they can be used by police and fire departments and other users; and taken on the airline industry over a consumer-rights bill, among other slugfests.

But some lobbyists in industries he has targeted are sanguine, figuring Sen. McCain won't focus much on issues such as drug importation once he has a bigger stage. One member of Sen. McCain's health-care task force, which endorsed drug importation, was a former McCain aide, Sonya Sotak, who lobbies against drug importation in her day job as an Eli Lilly lobbyist. "I don't impose my professional views on the senator," she says.

During his years at the Commerce Committee, Sen. McCain became the focus of lobbying from the telecommunications and health-care industries, given his focus on those fields. Now, health professionals, lobbyists, and individuals in the computer, television and movie industries are among his largest industry contributors, says the nonpartisan Center for Responsive Politics.

The law firm of Philadelphia-based Blank Rome LLP, which lobbies for cable company Comcast Corp. and drug company Abbott Laboratories, among others, is among Sen. McCain's largest contributors. The firm's employees have donated $188,000 to him, according to the center.

"My desire to support McCain has nothing to do with any client of my law firm," says David Girard diCarlo, the firm's chairman. Former Democratic vice presidential candidate Geraldine Ferraro, who backs Sen. Clinton, is a senior official at Blank Rome, which has raised $113,000 for the Democratic presidential candidate.

Climate Change

Sen. McCain's biggest regulatory effort is likely to come in the field of climate change. Along with independent Connecticut Sen. Joseph Lieberman, who was then a Democrat, Sen. McCain introduced the earliest version of a cap-and-trade system in 2003, and the pair have refined their ideas since. Under their plan, the government sets emissions goals. Companies that can't meet their targets must buy permits to produce carbon dioxide, either from companies that produce less CO2 than they are permitted, or from the government.

The system may require a large regulatory apparatus. In the latest McCain-Lieberman version, the government would auction off carbon-emission permits. According to Harvard economist Robert Stavins, such sales could raise $50 billion to $100 billion a year.

An Energy Department analysis says Sen. McCain's plan raises energy prices so much that it would reduce economic growth.

"I hear this interesting argument that somehow this would cost more money to our economy," says Sen. McCain. But, "I am absolutely convinced that innovation, technology, and using the entrepreneurship of America will come up with technologies which will save money, be a boon to our economy, and clean up our environment." He's unlikely to get much argument on this from his Democratic opponents; Sens. Obama and Clinton co-sponsored Sen. McCain's legislation.

Write to Bob Davis at


Barack Obama on Budget & Economy

Democratic Jr Senator (IL)

A different economic approach vs. McCain's 4 more years
Q: The GOP is arguing already that you want to increase capital gains taxes on investments and stocks: A lot of middle-class people have those kinds of accounts.

A: If they have a 401(k), then they are going to see those taxes deferred, and they're going to pay ordinary income when they finally cash out. So, that's a phony argument. You know, as I travel around the country, what I'm absolutely convinced of is that people recognize that if only 1% of the population is doing well, when we've got wage and incomes for the average worker actually going down during a period of economic expansion, much less economic recession, that something's being mismanaged. And they want a different approach. And that's what we're going to be offering them. John McCain is essentially offering four more years of the same policies that got us into this rut that we're in now.

Source: CNN Late Edition: 2008 presidential series with Wolf Blitzer May 11, 2008
Can't do anything at home with $12 billion a month on Iraq
The fact that we're spending $12 billion every month in Iraq means that we can't engage in the kind of infrastructure improvements that are going to make us more competitive, we can't deliver on the kinds of health care reforms that Clinton and I are looking for. McCain is willing to have these troops over there for 100 years. The notion that we would sustain that kind of effort and neglect not only making us more secure here at home, more competitive here at home, allow our economy to sink.
Source: 2008 Democratic debate at University of Texas in Austin Feb 21, 2008
Protect consumers with Credit Card Bill of Rights
  • Create a Credit Card Rating System to Improve Disclosure:Provide consumers an easily identifiable 1-star to 5-star ranking of credit cards, based on the card's features. Credit card companies will be required to display the rating on all application and contract materials.
  • Establish a Credit Card Bill of Rights to Protect Consumers:Obama will create a Credit Card Bill of Rights to protect consumers. The Obama plan will:
    • Ban Unilateral Changes
    • Apply Interest Rate Increases Only to Future Debt
    • Prohibit Interest on Fees
    • Prohibit "Universal Defaults"
    • Require Prompt and Fair Crediting of Cardholder Payments
  • Cap Outlandish Interest Rates on Payday Loans and Improve Disclosure:Obama supports extending a 36% interest cap to all Americans. Obama will require lenders to provide clear and simplified information about loan fees, payments and penalties, and he'll require them to provide this information during the application process.
Source: Campaign booklet, "Blueprint for Change", p. 10-15 Feb 2, 2008
More accountability in subprime mortgages
  • Ensure More Accountability in the Subprime Mortgage Industry:Obama introduced comprehensive legislation over a year ago to protect consumers against abusive lending practices. Obama's STOP FRAUD Act provides the first federal definition of mortgage fraud, increases funding for law enforcement, and creates new criminal penalties for mortgage fraud.
  • Create a Universal Mortgage Credit:Obama will create a 10% universal mortgage credit to provide tax relief to homeowners who do not itemize. This credit will provide an average of $500 to 10 million homeowners, the majority of whom earn less than $50,000 per year.
  • Mandate Accurate Loan Disclosure: Obama will create a Homeowner Obligation Made Explicit (HOME) score, which will provide potential borrowers with a simplified, standardized borrower metric (similar to APR) for home mortgages. The HOME score will allow individuals to easily compare various mortgage products and understand the full cost of the loan.
Source: Campaign booklet, "Blueprint for Change", p. 10-15 Feb 2, 2008
Bush stimulus plan leaves out seniors & unemployed
We heard the President say he has a stimulus plan to boost our economy, but we know his plan leaves out seniors and fails to expand unemployment insurance, and we know it was George Bush's Washington that let the banks and financial institutions run amok, and take our economy down this dangerous road. What we need to do now is put more money in the pockets of workers and seniors, and expand unemployment insurance for more people and more time. And I have a plan that to do just that.
Source: Response to 2008 State of the Union address Jan 28, 2008
Voted against limiting credit to 30%, because 30% too high
Clinton and Obama battled over their votes on bankruptcy bills and an amendment to cap interest charged on credit, at 30%. Obama claimed, "I thought 30% potentially was too high of a ceiling."

Obama did vote against--and Clinton voted for--an amendment that would have placed a 30% cap on the interest rate that could be charged on any extension of credit. The amendment failed by a vote of 74 to 24 in 2005. When the amendment came up for a vote, Obama was standing next to Sen. Paul Sarbanes, D-MD, the senior Democrat on the banking committee and the leader of those opposing the landmark bill, which would make it harder for Americans to get rid of debt.

As for whether the 30% cap was too high, that's certainly a matter of opinion. Sen. Mark Dayton of Minnesota, sponsor of the amendment, said on the Senate floor that such a cap "is still consumer abuse" but is much better than rates of more than 300%, which he said were being charged by some loan operations in the country.

Source: on 2008 Congressional Black Caucus Dem. Debate Jan 21, 2008
Account for every single dollar for new proposed programs
Q: You have some $50 billion worth of new programs that you cannot account for.

A: We account for every single dollar that we propose. This is one of the things that's happened during the course of this campaign, that there's a set of assertions made b Clinton and her husband, that are not factually accurate. Part of what the people are looking for right now is somebody who's going to solve problems and not resort to the same typical politics that we've seen in Washington. That is something that I hear all across the country. So when Clinton says I wasn't opposed to the war from the start or says it's a fairytale that I opposed the war, that is simply not true. Clinton asserts that I said that the Republicans had better economic policies since 1980. That is not the case. The viewers are concerned about is who's actually going to help the get health care, how are they going to get their kids going to college, and that's the kind of campaign I've tried to run.

Source: 2008 Congressional Black Caucus Democratic debate Jan 21, 2008
Help the homeowners actually living in their homes
It is important to make sure that we're not helping out the speculators, but instead are helping out the homeowners who are actually living in their homes, who have the capacity to make the payments if they're not seeing a huge increase in their mortgage payments. But understand this, this is not new. We have a history in this country of preying on low-income peoples because they don't have access to banks. The Community Reinvestment Act is oftentimes not enforced as it should be. We've got to open up bank branches. We've got to give people access to financing so that they're not going to a payday loan operation. I two years ago introduced a provision that would eliminate predatory lending, something that I had already helped to get passed at the state level. We've got to give ordinary working people access to financing. Part of the reason that they are borrowing on their homes, they're borrowing on credit cards, is that the banks and financial institutions have dominated policy in Washington.
Source: 2008 Congressional Black Caucus Democratic debate Jan 21, 2008
Bankruptcy bill pushed by banks &
OBAMA: When we talked a while back, we talked about the bankruptcy bill, which had been pushed by the banks and the financial institutions, that said, basically, it will be harder for folks who have been lured into these teaser rates and then see their credit cards go up to 30%, that they would have a tougher time getting out of bankruptcy. In the last debate, Clinton said she voted for it but hoped that it wouldn't pass. Now, I don't understand that approach to legislation.

CLINTON: I regretted voting for the bankruptcy bill and I was happy that it didn't get into law. By 2005, there was another run at a bankruptcy reform, motivated by the credit card companies and the other big lenders. I opposed that bill. There was a particular amendment that is very telling. It was an amendment to prohibit credit card companies from charging more than 30% interest. It was one of the biggest lobbyist victories on that very bad bill that the bankruptcy bill represented.

Source: 2008 Congressional Black Caucus Democratic debate Jan 21, 2008
Lack of an energy policy is a financial burden
Part of the reason that Kuwait and others are able to come in and purchase, or at least bail out, some of our financial institutions is because we don't have an energy policy. We are sending close to a billion dollars a day. A realistic plan is going to reduce our dependence on foreign oil, and to invest in solar & wind & biodiesel. That would make a substantial difference in our balance of payments, and that would make a substantial difference in terms of their capacity to purchase our assets.
Source: 2008 Democratic debate in Las Vegas Jan 15, 2008
Bush & GOP dug budget hole; need years to dig out
Q: Would it be a priority of your administration to balance the federal budget every year?

A: Over the last seven years, what we've seen is an economy that's out of balance because of the policies of George Bush and the Republicans in Congress. Not only do we have fiscal problems, but we've got growing inequality. People are working harder for less and they're seeing costs go up. So what I want to do is get the long-term fundamentals right. That means that we are investing in education & infrastructure, structuring fair trade deals, and also ending the war in Iraq. That is money that can be applied at home for critical issues.

Q: So a priority to balance the federal budget, or not?

A: We are not going to be able to dig ourselves out of that hole in 1 or 2 years. But if we can get on a path of sustained growth, end the war in Iraq, end some of the special interest loopholes and earmarks that have been clogging up the system, then I think we can return to a path of a balanced budget.

Source: 2007 Des Moines Register Democratic debate Dec 13, 2007
Save $150 billion in tax cuts for people who don't need them
Every proposal I've put forward during this campaign we have paid for, and we have specified where that money is going to come from. Let's just look at our tax code because it's a great example of how we could provide relief to ordinary citizens who are struggling to get by. Right now we've got a whole host of corporate loopholes and tax havens. There's a building in the Cayman Islands that houses supposedly 12,000 US-based corporations. That's either the biggest building in the world or the biggest tax scam in the world, and we know which one it is. If we close some of those loopholes, we've put forward tax relief plans, that will not only restore fairness to our tax code, but it also puts money into the pockets of hard-working Americans who need it right now, who will spend it, and will actually improve our economic growth over time, particularly at a time when we're seeing a credit crunch. But it requires leadership from the white house that restores that sense that we're all in this together.
Source: 2007 Des Moines Register Democratic Debate Dec 13, 2007
Take China "to the mat" about currency manipulation
Q: You had said that if China is actually manipulating their currency, the US needs to "take them to the mat." What exactly did you mean by that?

A: We have legislation that says that if, in fact, they are manipulating their currency--and I think there's no dispute that they are--that we need to take strong action. It's in the Banking Committee. I will say that it's actually a blunt tool. I'd prefer not doing this legislatively. The problem is we've had a president that has shown no leadership on it. So when I am in the White House, I will meet directly with the Chinese leadership and indicate we have to restore balance. And, by the way, we have to mobilize our allies, such as the European Union, to have that conversation with us. This is an imbalance that is not good for any economy over time. It's not sustainable, the trade imbalances that we have.

Source: 2007 Democratic radio debate on NPR Dec 4, 2007
Rejects free market vision of government
In a 2005 commencement address, Obama described the conservative philosophy of government as "to give everyone one big refund on their government, divvy it up by individual portions, in the form of tax breaks, hand it out, and encourage everyone to use their share to go buy their own health care, their own retirement plan, their own child care, their own education, and so on. In Washington, they call this the Ownership Society. But in our past there has been another term for it, Social Darwinism, every man or woman for him or herself. It's a tempting idea, because it doesn't require much thought or ingenuity." Obama has rejected this free market vision of government, preferring to see the power of the state as something that can serve the public interest. According to Obama, "We're going to put more money into education than we have. WE have to invest in human capital."
Source: The Improbable Quest, by John K. Wilson, p.155 Oct 30, 2007
Regulate financial instruments to protect home mortgages
Q: [to Dodd]: The Fed lowered the discount rate for banks to address the mortgage crisis. Should they lower rates for everyone else?

DODD: Yes, but we also need more liquidity in the market. It has seized up. You can't get a mortgage in America today.

OBAMA: We do need more liquidity, but we're going to have to not only help home owners who are going to be losing their homes as a consequence of this; we're going to have to make sure that we've got the kinds of tough regulation when it comes to financial instruments to make sure that people who have saved and are trying to get their own home for the first time are not hoodwinked out of it. And, unfortunately, the reason that we haven't had tougher regulation in part goes back to the issue of lobbying. This is where special interests have been driving the agenda. We have not had the kinds of consumer protections that are in place. That's why, when we have this debate about lobbying, we have to remind ourselves it has very real consequences.

Source: 2007 Democratic primary debate on "This Week" Aug 19, 2007
Government regulation needed for when markets fail
In the era of George Bush's running up huge federal deficits, Obama advocated fiscal restraints, calling for pay-as-you-go government. He waxed on about the power of the free market to create wealth and change lives. But he also had an afterthought on a market-based economy straight from liberal economist Paul Krugman: "Sometimes markets fail, and that's when labor laws and government regulation are necessary correctives." In other words, he was saying that capitalism is magnificent, but it does have its drawbacks. It would be hard for anyone to argue with such a balanced statement. "Obama figures out ways to present himself like a conservative to conservatives." Said [one advisor]. "He has the whole venture capital industry here in Chicago, nothing but Republicans, thinking he is their champion. He has supported entrepreneurship. It is a pro-growth message."
Source: From Promise to Power, by David Mendell, p.248-249 Aug 14, 2007
Return to PayGo: compensate for all new spending
We were told by our President that we could fight two wars, increase our military budget by 74%, spend more on education, initiate a prescription drug plan, have tax cuts, all at the same time. We were told by Congress that they could make up for lost revenue by cutting government waste.

The result is the most precarious budget situation we have seen in years. We now have an annual budget deficit of almost $300 billion, not counting more than $180 billion we borrow every year from the Social Security Trust Fund.

It is not the debt that is most troubling. The bulk of the debt is a direct result of the President's tax cuts, 47.4% of which went to the top 5% income bracket.

We can eliminate tax credits that have outlived their usefulness & close loopholes that let corporations get away without paying taxes. We can restore a law that was in place during the Clinton presidency--called Paygo--that prohibits money from leaving the treasury without some way of compensating for the lost revenue.

Source: The Audacity of Hope, by Barack Obama, p.187-189 Oct 1, 2006
Bush's economic policies are not working
Obama believes that there is no such thing as a "jobless recovery." When millions of Americans aren't working, neither are the Bush Administration's economic policies. As US Senator, Obama will champion policies that get our economy moving and people working instead of short-sighted tax-cuts for the rich that have failed to spark a recovery.
Source: Campaign website, May 2, 2004
Supports federal programs to protect rural economy
Our rural communities are the backbone of Illinois. Yet, factories have closed, jobs have disappeared, and homes and farms have been foreclosed upon. Effective federal programs are necessary to protect the rural economy.
Source: Campaign website,, ?On The Issues? May 2, 2004

Voted NO on paying down federal debt by rating programs' effectiveness.
Amendment intends to pay down the Federal debt and eliminate government waste by reducing spending on programs rated ineffective by the Program Assessment Rating Tool (PART).

Proponents recommend voting YES because:

My amendment says we are going to take about $18 billion as a strong signal from the Congress that we want to support effective programs and we want the taxpayer dollars spent in a responsible way. My amendment doesn't take all of the $88 billion for the programs found by PART, realizing there may be points in time when another program is not meeting its goals and needs more money. So that flexibility is allowed in this particular amendment. It doesn't target any specific program. Almost worse than being rated ineffective, we have programs out there that have made absolutely no effort at all to measure their results. I believe these are the worst offenders. In the following years, I hope Congress will look at those programs to create accountability.

Opponents recommend voting NO because:

The effect of this amendment will simply be to cut domestic discretionary spending $18 billion. Understand the programs that have been identified in the PART program are results not proven. Here are programs affected: Border Patrol, Coast Guard search and rescue, high-intensity drug trafficking areas, LIHEAP, rural education, child abuse prevention, and treatment. If there is a problem in those programs, they ought to be fixed. We ought not to be cutting Border Patrol, Coast Guard search and rescue, high-intensity drug trafficking areas, LIHEAP, rural education, and the rest. I urge a "no" vote.

Reference: Allard Amendment; Bill S.Amdt.491 on S.Con.Res.21 ; vote number 2007-090 on Mar 22, 2007
Voted NO on $40B in reduced federal overall spending.
Vote to pass a bill that reduces federal spending by $40 billion over five years by decreasing the amount of funds spent on Medicaid, Medicare, agriculture, employee pensions, conservation, and student loans. The bill also provides a down-payment toward hurricane recovery and reconstruction costs.
Reference: Work, Marriage, and Family Promotion Reconciliation Act; Bill S. 1932 ; vote number 2005-363 on Dec 21, 2005
Get minorities into home ownership & global marketplace.
Obama adopted the CBC principles:
    The CBC is focused on economic empowerment issues including:
  • New Markets and Small and Minority Business Development. The CBC will seek to increase opportunities for minority and small and disadvantaged businesses by expanding contracting opportunities in the public and private sectors, increasing access to capital, creating tax incentives for capital improvements, removing outdated and restrictive regulatory barriers, and streamlining and enhancing procurement tools to encourage minority and small business utilization.
  • Trade and Global Economic Empowerment. The CBC will work to ensure that the benefits of the dynamic global marketplace extend to minority businesses, and Africa and developing countries. To this end, the CBC will propose and support trade and investment initiatives designed to bridge the global digital divide, create jobs, improve infrastructure, promote sustainable development, and raise living and work standards for people of color around the globe. Moreover, the CBC will work to ensure that America’s international trade agenda and priorities also meet these goals.
  • Increasing Affordable Housing Opportunities. The CBC’s goal is to increase the nation’s homeownership rates. Home ownership is one of the best wealth creation vehicles for minority families. We will work with lending institutions and community organizations to ensure that minorities are afforded every opportunity to realize the dream of owning a home.
Source: Congressional Black Caucus press release 01-CBC10 on Jan 6, 2001
Require full disclosure about subprime mortgages.
Obama co-sponsored requiring full disclosure about subprime mortgages

Sen. DODD: Today we are facing a crisis in the mortgage markets on a scale that has not been seen since the Great Depression: over 2 million homeowners face foreclosure at a loss of over $160 billion in hard-earned home equity; over one out of every 5 subprime loans is currently delinquent. These high default rates have frozen the subprime and jumbo mortgage markets and infected the capital markets to the point where central banks around the world have had to inject liquidity into the system to avoid the crisis from spreading to other segments of the market.

One of the fundamental causes of this serious crisis is abusive and predatory subprime mortgage lending. The Homeownership Preservation and Protection Act of 2007 is designed to protect American homeowners from these practices, and prevent this disaster from happening again. The legislation will:

  • realign the interests of the mortgage industry with borrowers to insure the availability of mortgage capital on fair terms both for the creation and sustainability of homeownership;
  • establish new lending standards to ensure that loans are affordable and fair, and
  • provide for adequate remedies to make sure the standards are met; and create a transparent set of rules for the mortgage industry so that capital can safely return to the market without bad lending practices driving out the good.
It is important to keep in mind that only about 10% of subprime mortgages have been made to first time home buyers. This market has not been primarily about creating a new set of homeowners; a majority of subprime loans have been refinances. While maintaining access to subprime credit on fair terms is important, too much of the subprime market has actually put the homes and home equity of American families at risk.

In the coming months, the housing crisis is going to get worse. We will need to continue to press lenders and servicers to provide real relief for homeowners threatened with foreclosure.

Source: Homeownership Preservation and Protection Act (S.2452 ) 2007-S2452 on Dec 12, 2007
Reform mortgage rules to prevent foreclosure & bankruptcy.
Obama co-sponsored reforming mortgage rules to prevent foreclosure & bankruptcy
  • Foreclosure Prevention Act of 2008 - refinance mortgages originally financed through a qualified subprime loan.
  • Makes FY2008 appropriations for emergency needs of states and local governments to redevelop abandoned and foreclosed homes; and the Neighborhood Reinvestment Corporation for foreclosure mitigation activities.
  • Helping Families Save Their Homes in Bankruptcy Act of 2008 - Authorizes a bankruptcy plan for individuals with regular income to provide for payment of such claim for a period of up to 30 years. Creates a principal residence homestead exemption for debtors over 55 years of age.
  • Mortgage Disclosure Improvement Act of 2008 - Amends the Truth in Lending Act to set forth additional disclosure requirements governing any extensions of credit (not only mortgages) secured by the dwelling of a consumer.
Source: Foreclosure Prevention Act (S.2636) 2008-S2636 on Feb 13, 2008
Other candidates on Budget & Economy: Barack Obama on other issues:

Political Leaders:
Pat Buchanan
George W. Bush
Hillary Clinton
Elizabeth Dole
Al Gore
John McCain
Ralph Nader
Robert Reich
Janet Reno
Jesse Ventura

Opinion Leaders:
Noam Chomsky
Bill Clinton
Jesse Jackson
Rush Limbaugh
Ross Perot
Ronald Reagan

Party Platforms:
Democratic Platform
Green Platform
Libertarian Platform
Republican Platform
Civil Rights
Foreign Policy
Free Trade
Govt. Reform
Gun Control
Health Care
Homeland Security
Social Security
Tax Reform


The Illuminati, the New World Order (NWO) and the Global Elite

Before I start let me say that its important to draw your own conclusions. No one has ever come forth claiming to be apart of this secret society nor has anyone ever unravelled the entire mystery. Like any other controversial issue we can only speculate and sometimes hope what we speculate and wonder does not come to be true.


What is the Illuminati?

There is a power so organized, so subtle, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it -- Woodrow Wilson

illuminati conspriacy nwo new world order


There are 13 leaves on the left olive branch with 13 berries. 13 stripes on the middle shield. 13 arrows on the right.  13 stars above the eagles head. 13 letters in the "E Pluribus Unum" on the ribbon. 13 letters in Annuit Coeptis. There are 13 blocks top to bottom on the pyramid.
Fritz Springmeir in his The 13 Bloodlines says these 13 blocks represent the 13 Illuminati family's. 

In the circles at the end of the hexagram points it even spells the word Mason. 

The Roman Numerals at the bottom of the Pyramid: MDCCLXXVI

The Illuminati is a secret organization founded on the principles of abolished religion, elimination of national borders, abolition of private property, civil rights, and the establishment of one elite ruling class over the entire world, also known as The New World Order : . The Illuminati intend to rule the world and thus achieve and Illuminated state of mind like a kingdom of god on earth with us, the rest of mankind, to be their sheep.

As mentioned the Illuminati has been around for many thousands of years. This is not any average secret society, this society is the largest and has its seed in every prosperous nation on earth. The conspiracy is more like a tale from a cave painting than anything. In the beginning Man was meant for slave labor to serve a reptilian race called the Anunnaki. These Anunnaka are thought to be the giants god cast down from heaven. This reptilian race attempted to exhibit control on man through secret societies. It is thought that these Anunnaki live on through thirteen wealthy families that hold the reigns of government in their hands.  These families are kept hidden and are all over the world.

The Illuminati is like a Pyramid. There are many levels, no one knows what the level above them knows.

The Illuminati plan to literally rule the world, with one king believed to have divine powers. This king may well be the false Messiah mentioned in the Bible. Promising to make the world better only to take power as the world dictator. Under this King the New World Order will take place. The New World Order is a Socialist World Government. When this government takes hold will become the slave race we were supposed to be.

How do the Illuminati mean achieve this frightening goal?

The plan for a New World Order started with one Jewish former Catholic named Adam Weishaupt. Weishaupt. His plan called for a Revolution in France and for Britain to fight colonial war. Both of which happened around his proposed dates. The Illuminati  began to gain more strength and influence in Europe leading to the first and second World Wars. Both were attempts to weaken Europe. When the Wars were over the Illuminati started the United Nations itself to help preserve peace and stability but to also bring the New World Order one step closer to existence. When Europe's economy suffered from inflation, the Illuminati created the idea of one European currency.

Out in the Wide open

On one of the highest hilltops in Elbert County, Georgia stands a huge granite monument. Engraved in eight different languages on the four giant stones that support the common capstone are 10 Guides, or commandments. That monument is alternately referred to as The Georgia Guidestones, or the American Stonehenge. Though relatively unknown to most people, it is an important link to the Occult Hierarchy that dominates the world in which we live.

georgia guidestone illuminati


1. Maintain humanity under 500,000,000 in perpetual balance with nature.
2. Guide reproduction wisely - improving fitness and diversity.
3. Unite humanity with a living new language.
4. Rule passion - faith - tradition - and all things with tempered reason.
5. Protect people and nations with fair laws and just courts.
6. Let all nations rule internally resolving external disputes in a world court.
7. Avoid petty laws and useless officials.
8. Balance personal rights with social duties.
9. Prize truth - beauty - love - seeking harmony with the infinite.
10.Be not a cancer on the earth - Leave room for nature - Leave room for nature.

Limiting the population of the earth to 500 million will require the extermination of nine-tenths of the world's people. The American Stonehenge's reference to establishing a world court foreshadows the current move to create an International Criminal Court and a world government.

What is the true significance of the American Stonehenge, and why is its covert message important? Because it confirms the fact that there was a covert group intent on

(1) Dramatically reducing the population of the world.
(2) Promoting environmentalism.
(3) Establishing a world government.
(4) Promoting a new spirituality.

Certainly the group that commissioned the Georgia Guidestones is one of many similar groups working together toward a New World Order, a new world economic system, and a new world spirituality. Behind those groups, however, are dark spiritual forces. Without understanding the nature of those dark forces it is impossible to understand the unfolding of world events.

The fact that most Americans have never heard of the Georgia Guidestones or their message to humanity reflects the degree of control that exists today over what the American people think.

Another step closer towards one world government.

As we speak the Illuminati have a plan to bring yet another World War using the instability of the Middle East. Soon gun control will be instated in America and even martial law declared while the Government takes huge legislation to turn America into a make shift Police State in preparing for the coming New World Order. The world could slipping into an unimaginable world of slavery and oppression worse then ever before. Where controlled depopulation is introduced through diseases like AIDS and your family is shipped away to do labor. Where everything you used to own is no longer yours and where inheritance is abolished.

This is a nightmare that cannot be stopped as long as we remain apathetic towards our government and allow ourselves to be dragged along through whatever the government does. Hopefully this got you interested in the subject and you can go out and come to your own conclusion to everything.

 Editor's Note: This small article is excerpted from a copy of a web page no longer published on the web.



Who really controls world events from behind-the-scene? Years of extensive research and investigation have gone into this massively documented work. In this 624 page, large format book, Fritz Springmeier discloses mind-boggling facts and never before revealed truths about the top Illuminati dynasties. Discover the amazing role these bloodlines have played—and are now wielding—in human history, with family names such as 


The Astor Bloodline   

 The Bundy Bloodline

 The Collins Bloodline

The DuPont Bloodline

 The Freeman Bloodline

 The Kennedy Bloodline

 The Li Bloodline

 The Onassis Bloodline

 The Reynolds bloodline

 The Rockefeller Bloodline

 The Rothschild Bloodline

 The Russell Bloodline

 The Van Duyn Bloodline

 Merovingian (European Royal Families)

Interconnected families:

The Disney Bloodline

The Krupp Bloodline

The McDonald Bloodline

You’ll also learn of the secretive, Chinese Li family, which operates with impunity in the U.S.A. and around the world. Along the way you’ll find out why President John F. Kennedy and actress Grace Kelly were killed; who created the United Nations; who controls the two major U.S. political parties; how the Rothschilds invented and control modern-day Israel; who secretly founded false religions such as the Jehovah’s Witnesses; and much, much more. A literal encyclopedia of rare, unbelievable information!

Each of the 13 ruling families is given an area of the Earth and/or a particular function to fulfill on the Earth. These particular functions include global finances, military technology/development, mind-control, religion, and media.

Each of the 13 ruling families has a Council of 13 as well. The number, 13, has great significance to them. They know that there are 12 types of energies that pass through the 10 aspects of God-Mind. The totality of the 12 energies equals a 13th energy. This is considered the most powerful knowledge.

They also know that there are really 13 Zodiac signs, not the commonly acknowledged 12. They have kept the 13th hidden for centuries because it is the sign of the Dragon. They keep the qualities and traits of this sign secret to avoid giving away clues to the Reptilian mind-pattern.

Dr. Luis Turi is an expert on the 13th Zodiace sign as was Nostradamus. You can't get an accurate horoscope for anyone or any event without using the 13th sign.   See:

The next layer is the second-in-command families who do the support work for the Pindar and 13 ruling families. While all of the 13 ruling family members are shape-shifters, all members of the 300 supporting families are not. They do, however, all have a high percentage of Reptilian DNA.

They are known as the "Committee of 300".These families include such notable names as Agnelli, Balliol, Beale, Bell, Bouvier, Bush, Cameron, Campbell, Carnegie, Carrington, Coolidge, Delano, Douglas, Ford, Gardner, Graham, Hamilton, Harriman, Heinz, Kuhn, Lindsay, Loeb, Mellon, Montgomery, Morgan, Norman, Oppenheimer, Rhodes, Roosevelt, Russell, Savoy, Schiff, Seton, Spencer, Stewart/Stuart, Taft, and Wilson. There are many others.

The Committee of 300 use many well-known institutions to accomplish their goals, including the Council on Foreign Relations, Bilderburgers, Trilateral Commission, Club of Rome, Royal Institute for International Affairs, Mafia, CIA, NSA, Mossad, Secret Service, International Monetary Fund, Federal Reserve, Internal Revenue Service, and Interpol, to name a few. All of these are private organizations or corporations set up as public service devices, but this is far from the truth.

See more details here:



Other bloodlines are Mellon, Carnegie, Duke, Dorrance, Stiliman, Baker, Pyne, Cuilman, Watson, Tuke, Kleinwort, DuPont, Warburg, Phipps, Grace, Guggenheim, Milner, Drexel, Winthrop, Vanderbilt, Whitney, Harkness

One of these bloodlines was the Ishmaeli bloodline from which a special elite line developed alchemy, assassination techniques, and other occult practices. One bloodline was Egyptian/Celtic/Druidic from which Druidism was developed. One bloodline was in the orient and developed oriental magic. One lineage was from Canaan and the Canaanites. It had the name Astarte, then Astorga, then Ashdor, and then Astor. The tribe of Dan was used as a Judas Iscariot type seed. The 13th or final blood line was copied after God’s royal lineage of Jesus. This was the House of David with their blood which they believe is not only from the House of David but also from the lineage of Jesus, who they claim had a wife and children.  One of the bloodlines goes back to Babylon and are descendent from Nimrod. Down through the years the occult world has remained hidden from the history books. Publishing and education have always been controlled privileges. They have ruled behind the scenes. The Mystery Religions each had their secret councils which ruled them, and these councils themselves came under the guidance of a secret supreme Grand Council or Governing Body. The Mystery Religions in turn ruled the masses and the political leaders.

Power comes in many shapes and sizes. Power doesn’t have to have high visibility to be active. The Illuminati controls the world through their secret and semi-secret organizations. Illuminati organizations include the ACL, the Bohemian Grove, the Cosmos Club, the CFR, the Club of Rome, the Council of 9, the Council of 13 which is the Grand Druid Council, the Jason Society, the Jason Group, the Ordo Saturis, the OTO groups, MI-6, MJ-12, the Mothers of Darkness, the Pilgrim Society, the Prieure de Sion, the Process Church, the Sanhedrin, the Temple of Power, and other groups.




PINDAR...........The Lizard King??????????

Do you know the Lizard King????? Is Pindar real?????

According to David Icke, the heirarchy goes like this :

Reptilian 'Royalty' : Winged reptilians, with the highest caste being the Albino type (similar to Pindar).

Reptoids : Wingless reptilians. They are the ones described as having larger scales on their backs and three fingers with an opposing thumb.

Greys : Described as being either drone-like slaves of the reptilians or an extraterrestrial life-form allied to them.

Humans : We're at the bottom, but why doesn't that surprise me ? 

The Reptilians are described as being between 5 and 12 feet tall. There are several types.

Also from Icke's research: "Pindar attends the major Satanic ceremonies in Europe and then flies to California for the rituals there".

Later in the book (Biggest Secret), Icke says that "Pindar, the 'Marquis de Libeaux' travels in a white limousine (A 'code-white' is a code understood by judges, police, the military etc and it means: look the other way or do not prosecute this person)."  B
ut this is disinformation. The true current Pindar is the head of the Rothschild family, as has been for several hundred years. He is based in Germany near Frankfurt. In the late 1970s, he oversaw the sister project to Montauk, called M.A.L.D.A. is an anagram for Montauk-Alsace-Lorraine Dimensional Activation. This project was located near the city of Strasbourg, France, historically once part of Germany.

On page 453 of the same book, Icke states that " ... the Queen makes cruel remarks about lesser initiates, but is afraid of the man code-named 'Pindar' (the Marquis de Libeaux) who is higher than her in Satanic rank. Pindar, apparently, bears a resemblance to Prince Charles. Arizona Wilder says that Pindar is Charles' real father."

Finally, Icke summises, along with Arizona Wilder, the possibility that Princess Diana was pregnant at the time of her murder and that the child could have been Pindar's rather than that of Dodi Fayed, and the child was sacrificed in a ritual ceremony.  Diana was sacrificed because she would not cooperate with the organization.

 Icke insists that only one 'strain' of the reptilian race is antagonastic towards us. To consider all reptilians 'evil' is like considering all humans the same way. Patently false.

Going Dutch

The Dutch government resigned this week under pressure brought on by accusations that in 1995, over 7000 Boznia Muslims were executed by Serbs while under the protection of Dutch troops. This was the worst mass murder in Europe since WWII. Queen Beatrix, the Bilderburger leader, witnessed the mass sacrifice as part of a ritual ceremony. An interim government will run the small nation until the May 15, 2002 election.

On 9-18-01 - DREAM - I was being shown dividing and putting together of letters and numbers. I remember 2 and 93, 94, and 15 - at the very end I was shown the name Queen Beatrice of Holland and her dna sample.

[Editors NOTE: I am of Dutch heritage myself. I had no idea what kind of connection I would find with her, despite doing research on her life, I found nothing back then. Now - my eyes are opening!]

Who knows about this 12 foot albino lizard??? I have heard them call him the "Marquis de Libeaux"Marquis actually means king. In French it simply means the Marquis of Libeaux. Marquis being a noble, Libeaux being the name of some region.

Top Illuminati Family Names

These are the top of the Illuminati organization. These are the people that really run this world. The most powerful is Marquis de Libeaux then followed by the Rothschild's {Bauer}, Bruce, Cavendish {Kennedy}, deMedici, Hanover, Hapsburg, Krupps, Plantagenet, Rockefeller, Romanov, Sinclair/ St. Clair, Warburg {delBanco}, and Windsor families. These are the families that run the NWO and all the stooges that work for them. They all worship Satan and they all take part in human sacrifice and ritual child abuse. If you do your own research you will see that these families have "bred themselves since ancient times and they are obsessed with keeping their bloodlines "pure". These are the sickest people on this planet and their hold is going to be broken as the world "wakes-up" to their murderous deception around the world. Remember the truth will set you free!

The original "Mother Goddess" after whom a slew of deities including Queen Semiramis, Isis, Diana and others were fashioned was Ninkharsag.

The commander of the Anunnaki was Enlil, half-brother of Enki. The book of Genesis and Exodus and were based on The Levites (initiates of the Egyptian mysteries); based on Sumerian stories and accounts. Between 11,000 and 4000 bc catastrophes were visited upon the earth, destroying the advanced civilizations of the Golden Age. The Anunnaki are said to have arrived 450,000 years ago. Their leader was the winged albino-white Draco.

The owner of this seal can be identified from the cuneiform inscription which translates: 
'Seal of Mushezib-Ninurta, governor, son of Ninurta-eresh, 
ditto, son of Samanuha-shar-ilani, ditto.' 
Samanuha-shar-ilani was ruler of Shadikanni 
(Arban in eastern Syria), in 883 BC, and an Assyrian vassal - 
subject to the firm control of Assyria, 
and enjoying the wealth and security that such political domination provided.

During this period, seal designs were often cut on hard stones using cutting-wheels and drills.
The image is similar to two wall reliefs from the throne room of King Ashurnasirpal II 
(reigned 883-859 BC) at Nimrud. The king, shown in mirror image, is protected by 
guardian genii sprinkling holy water from a bucket using what may be a fir cone or sponge. 
A stylized tree stands in the centre, symbolizing nature and the land of Assyria. 
Above is a god in the winged disc.

Length: 4.9 cm
Diameter: 1.7 cm

Found by H.C. Rawlinson and acquired by The British Museum around 1852

D. Collon, First impressions: cylinder seals in the Ancient Near East (London, The British Museum Press, 1987), pp. 76-7, fig. 341

A.H. Layard, Discoveries in the ruins of Nineveh and Babylon (London, J. Murray, 1853), p. 603

From what star constellation are the reptilians said to originate?
What is the difference between reptilian full-bloods and reptilian hybrids?
Full-bloods are reptilians using a human form to hide their true nature; hybrids are reptile-human crossbreed bloodlines who are possessed by the reptilians from the forth dimension

Where did the white race and the reptile-aryan crossbreeds emerge from after the flood?
The Caucasus mountains

What were the Aryans who left the Caucasus to rule India called?
The Khattiyo 

Where did the Jewish race originate from?
The Caucasus mountains

What do lions symbolize to the Aryans?
The sun

See this video:


It is inauspicious to begin an article with an oxymoron such as "cycle of human evolution." You know things won't improve.

The term human evolution refers only to phylogeny (Stirling failed to consult a dictionary). Perhaps what he really wants to say is cultural development.

"Almost 6000 years ago" (4000 BCE) falls within the Chalcolithic (or Eneolithic) in Mesopotamia, which is currently the countries of Iraq and northeastern Syria. Notice it's Mesopotamia, because Sumerian was a language and Sumer was a culture. Sumerian disappeared as an official language during the Agadian (Akkadian) period (2371-2230 BCE).

"Almost 6000 years ago" coincides with the building of a very simple temple at Tepe Gawra (Notice to archaeology wonks: I'm using the Middle Chronology). Ubaid culture evolved into the Warka (Uruk) culture; Warka culture provided the earliest sample of writing in Mesopotamia.

About 5500 years ago (3500 BCE) Sumerian-speaking people came out of the hills, settled along the Euphrates River, and built a large temple of mud brick at Eridu. Almost 5000 years ago (about 3000 BCE) Sumerian-speaking people added to existing structures to create monumental architecture (such as the White Temple in Kullaba and the temple at Eanna). They also began establishing city-states and urban areas.

The boundary of the cultures of Sumer and Agade, according to the Sumerian king-list, consisted of the area south of Baghdad defined by the Tigris, the Euphrates, and the Persian Gulf. Influence of these cultures extended to Ebla in the west, Nineveh in the north, and Susa (in Elam) in the east.

Unu (what Agadians called Uruk) was the largest of the urban areas in Mesopotamia around 3000 BCE, a total of 5.5 km2.

Zechariah Sitchin has done a good job researching the Sumerian records. One might start by reading that first.

Kingship and Ritual

The scholarly model of development away from monarchy in most of the Greek mainland is rooted in an overly uncritical acceptance of fabricated king lists and of the relevance of the Roman and eastern models for Greek practice. This acceptance stems from a desire to credit ancient Greek accounts of their own past, but also from a modern prejudice that traces a teleological development from monarchy to various forms of republicanism. The construction of mythico-historical kings satisfies a desire for tidy origins, as well as for an original focus of authority from which subsequent developments are diffused. We must, then, always ask whose interests are served by a model of original kingship and hereditary descent of authority. If aristocratic elites in the Archaic and Classical period fantasized about royal descent, this served the dual purpose of reinforcing their elite status and communicating to non-elites the (relatively) more egalitarian nature of elite influence in the polis. Thus attempts at dominance by powerful members of the elite can be cast as reversion to a superseded past. The contrast between legitimate hereditary kingship and illegitimate and tyrannical usurpation of power may thus be seen as a contrast between a quasi-official historical construction and the harsher reality of authoritarian government.

Second: ritual and cult. If Morris' emphasis on the chiefly ritual importance of the wanax is sustainable (even if it is not the whole story), the centrality of cult is a major area of continuity between Bronze Age and later notions of monarchic rule. Ritual kingship casts a shadow down as far as the Athenian archôn basileus and the heroic honors paid to ancient city founders. In most later conceptions, it is the gap between the human and the divine that is significant, as we see in much of the poetry of Pindar, and also in the vase paintings cited by Morris. Religious and temporal power do not coincide. Yet the figure of the tyrant complicates this divide. Sicilian tyrants such as Gelon and Hieron were anxious to become city founders, by fair means or foul, and the Emmenids of Acragas may have used their hereditary priesthoods as a springboard for the acquisition of temporal power. Peisistratus' charade as favorite of Athena, escorted into the polis by the goddess in her chariot, is also relevant here. We start, it seems, with a ritual king who does not embody our conception of monarchic rule. While this tradition continues, we are also presented with an authoritarian ruler (the tyrant) who attempts to draw to himself the trappings of religious legitimation. This change of emphasis lies behind the Zeus-like powers of the tyrant in tragedy and comedy, as detailed by Seaford and Henderson. The Prometheus Bound shows that if a tyrant can be conceived as a god, a god can also be conceived as a tyrant.

According to Zechariah Sitchin, who has written many books on the Sumerian tablets, the term "men of renown" in the Genesis passage should read, from its Sumerian origin, "men of the sky vehicles". This puts rather a different complexion on the whole story and makes a great deal more sense of it. The reference to "heroes of old" is also relevant. The word hero comes from the Egyptian term, "heru, which, according to researcher Wallis Budge, was "applied to the king as a representative of the Sun God of Earth."  The precise meaning was "a human being was neither a god nor a daemon." The term has the inference of a crossbreed race. The writer Homer (8th-9th century BC) wrote that "the heroes were exalted above the race of common men". The poet, Pindar, (518-438 BC) a very relevant name for readers of "The Biggest Secret" by David Icke - used the term, hero/heru, to describe a race "between gods and men". It is extremely likely that Horus or Haru, the Egyptian son of God and a mirror of the much later "Jesus" came from the term heru, which means the Sun God's representative on Earth, the hybrid or Aryan race. (p 72 - Children of the Matrix" by David Icke.)

Morris' focus on cult is chiefly picked up by Seaford's treatment of the tyrant in tragedy. For Seaford, one crucial aspect of the tyrant is his perversion of ritual. We see this both in the stories associated with historical tyrants such as Polycrates, and in the abuse of ritual by tragic characters such as Clytemnestra. The abuse of the sacred forms part of a larger pattern in which the destruction of the royal family and the institution of polis cult becomes a structuring principle in Greek tragedy. The contrast with Morris' picture of the Bronze Age situation is instructive. There, kingly authority is ritual authority. In the later period, however, ritual becomes a tool in the pursuit of power, and is often perverted by that pursuit. Seaford's tragic tyrant exists in a problematic relationship with ritual, and successful polis cult is only possible once the tyrant has been expelled. Thus religious legitimation and power has been detached from the king and attached to the polis. It seems reasonable to consider this a symptom of the considerable transformation in governmental structures after the Bronze Age. Even if, with Morris, we find traces of communitarian government in the earlier period, it is clear that there has been a reconfiguration of attitudes towards the individual figure of authority. But the area in which the tension between individual and community is played out remains constant, and that area is ritual.

Another important characteristic of tyrannical power is wealth. Seaford points out that tyrants are greedy for money and the power it allows them to exercise. Yet tyrannical greed may have a positive counterpart in lavish expenditure, and here again, the importance of religious factors is striking. As Morris notes, the capacity of sanctuaries in the Archaic period to attract tyrannical largesse and the concomitant power and influence wielded by such sanctuaries, reminds us of the religious significance of kingship in the prehistoric period. Historical tyrants, both Greek and foreign, seek legitimation and negotiate power in their relationships with these sanctuaries. Just as tyrannical greed is intimately connected with impiety in the world of tragedy, so tyrannical expenditure upon offerings and religious building projects attempts to realign the tyrant and re-embed him in the religious sphere. In the tragic imagination, as Seaford suggests, the use of money may mark a failure in reciprocity, but on a pragmatic level it enables successful diplomatic exchange and marks pre-eminence. Thus it is that the Athenian demos engages in quasi-tyrannical expenditure with its massive use of public moneys, a phenomenon analyzed in Lisa Kallet's fascinating essay. The demos both taxes and spends in a demonstration of its pre-eminent power; its role as economic patron forestalls challenge from members of the elite, who do not have the resources to match it. The symbiotic relationship of tyranny, wealth, and expenditure (studied by Kallet and Seaford), taken together with the implication of the king or tyrant in religious concerns (as we see in the essays of Morris and Seaford), goes far to explain the extraordinary magnificence of the fifth-century building program on the Athenian acropolis. While Kallet rightly sees this as an instance of public patronage, it is significant that this patronage, to use Morris' words, marks "the convergence of polis and shrine."

The third area where Morris' treatment of kingship is significant for this volume as a whole is that of regional geographic variation. This concern manifests itself in the remaining essays in two ways. It emerges as an awareness that we can best understand Athenian developments in light of a broader Greek context. Thus we note that robust forms of kingship established themselves chiefly on the margins of the Greek world, while the communitarian model had greater force in the heartland. Nevertheless, a network of economic, military, and diplomatic relationships ensured lively exchanges between widely varying constitutions. My own essay explores the notion of "constitutional slide" as a function of the close proximity of differing forms of government. The richness of constitutional variation allows both Plato and Isocrates to criticize democratic tyranny and construct political structures based on ethics rather than on the number of people in whom power was vested. Regional variation mandates an awareness of multiple audiences and permits the development of "amphibolic" readings of texts as diverse as Isocrates' Panathenaicus and the funerary monument of Dexileos, the object of an unsettling analysis by Josiah Ober. Ober rightly points out that tyranny in the Classical period was a concern to poleis other than Athens. Our tendency towards Athenocentrism often predisposes us to ignore this wider context, but to do so is to ignore an important area of cultural exchange. Tyranny could remain a concern in Athens because the Athenians had frequent contacts with kings and tyrants in a politically unstable world. But it was an exportable concern, as Ober's investigation of the Erythrae decree concerning repairs to the statue of a tyrannicide shows. Athens liked to export democracy to the subject cities of its empire, but its hatred of tyranny, and the concomitant iconography of resistance to tyranny was just as real an export.


In the Bible.. after the deception, God says that from then on, the serpent would have no legs and crawl around on his belly? Doesn't this imply that at the time the serpent DID have legs.. kind of like a reptoid?

Genesis 3:15 "And I will put enmity between thee and the woman, and between thy seed and her seed; it shall bruise they head, and thou shalt bruise his heel."

Is there a race of reptoids co-existing with us? Is there a secret group, running the world who worship a reptoid? Is it just one of MANY reptoids? Is it the leader of the reptoids? Is it a completely different being, separate from those reptoids? Do those reptoids even exist? Are the reptoid race nothing more than Mankind's perceived evils personified into a form which is the personification of evil in the Bible? Is it the Bible which makes them Reptoid and not, say.. arachnid?

So would Eden be real? Not in the literal sense, but an actual place that man was banished from because of these reptoids?
Pindar.......the lizard king

It is said that the
garden of Edan was not on this planet and that we have been planted and the reptoid were our jailers?
On the subject of Reptoids and such, are any of you familiar with the statuettes from the Jarmo excavation? Reptilian people doing ordinary things, nursing babies, etc....and they also made them of regular people, so, combined with the ordinary activities they are depicted doing, not likely to be idols or anything of the sort....
Some basic info here:

It's 7000 BC actually, and in probably largely destroyed by now
The stories about reptilian visitors extend from India, to Mexico, to China, back to North America, and Russia, and even many parts of Africa and South America.
There are a lot of links to Jarmo and these lizard people and many other early cultures of the with similar traditions. The Jarmo statuettes are the closest thing to hard evidence. It goes without saying, in a world full of skeptics, any bits of hard evidence are priceless. 

If you want to know more about Pindar or these Reptilians go to David Icke's website

David Icke's Biggest Secret book has a photo of this statue..  This one is also from Iraq, but from the Ubaid area. It appears to be a reptilian suckling one of its offspring. The Ubaid period was from 5500 - 4000 B.C.

A reptile statue found in graves of the Ubaid people who lived in what is now Iraq up to around 4,000 BC.  This culture predates the Venus cataclysm which probably forced the surving reptilians underground or into another dimension.

As for Pindar, Icke translates the name as meaning Penis of the dragon and states that the (Pindar) is also known as the Marquis of Libeaux. At the time he was writing the book, Icke had little else to say about this particular reptilian other than stating that he is above the Windsors in the Brotherhood heirarchy. 



JarmoJarmo is an archeological site located in northern Iraq on the foothills of the Zagros Mountains. For a long time it was known as the oldest known agricultural community in the world, dating back to 7000 BC. It is also one of the oldest Neolithic village sites to be excavated. It was first found in 1940’s by the Iraqi Directorate of Antiquities, which later recommended the site to Robert Braidwood of the Oriental Institute of the University of Chicago. He had been asking about ancient villages in the Middle East for a study he was conducting. Under the Oriental Institute, Braidwood excavated the site at different times from March 1948 until June of 1955. He wanted to find out more about the origin of food production. The Jarmo archeological site was one of the first means of documentation for the way of life of civilization's first farmers and herders.

Jarmo HousesThere were approximately 100 to 150 people who lived in the village. Twenty permanent mud-walled houses, with stone foundations, tauf walls, and reed bedding, housed the residents of Jarmo. The people reaped their grain with stone sickles, stored their food in stone bowls, and possessed domesticated goats, sheep, and dogs. They also grew emmer and einkorn wheat, barley, and lentils. In addition to their agriculture, they also foraged for wild plants such as the field pea, acorns, pistachio nuts, and wild wheat. The later levels of settlement contained evidence of domesticated pigs and clay pottery. Since many of their tools were made of obsidian from beds 300 miles away, a primitive form of commerce must have existed. Bone tools, especially awls, were abundant from the site. Carefully made bone spoons and beads were also found.

Braidwood said, after he was unable to excavate the site any further due to political reasons, that Jarmo as a settlement was an social and economical example for future Mesopotamian cultures that would arise around 4000 BC. It was also the first site in the Near East in which interdisciplinary field archeology was used to discover the origins of food production.

Images courtesy of


Laure, Gerald A., Old Testament Life and Literature 1968

The Oxford Encyclopedia of Archeology in the Near East 1997


This account is based on notes that I took from the 3 hour video. This video was made by David Ike and Bridge of Love publications

It is called 'Revelations of a Mother Goddess' [a title given to this lady - one of 3 in the world] and also accompanies David Icke's detailed exposition of this subject called 'THE BIGGEST SECRET'

According to the Mothers of Darkness, the satanic cult based in Brussels who train and educate the MK child slaves as they are 'born to the blood' - the Aryan bloodline is Alien to this planet - they were a Race fleeing the Reptiles and got here 4000BC - then started mixing with the locals. Red hair, Blonde hair, blue eyes they may have been of great stature as recent excavations of the 8 foot tall Firbolg Knights in Eire suggest.

Then, the Reptilian species - who have according to Giza plain mathematics have come from the Serpens star cluster [serpens caput and serpens cauda both of 7 stars] arrived in 2000BC and as record would have it - infiltrated the Human race and its social structure and began the hybridisation experimentation. One of which was the foundation of the Merovingian Dynasty [born out of half man and half 'fish'].

There are 13 bloodlines from this kind of stock, and all of them have to a greater or lesser degree the capacity to play host to the Shape Changer Reptiles. The known shape shifting in human mythology goes back to North Africa, Tibet, Maya, Rome [called versae pellis effect].

The Reptile species is apparently on a loser because it had been brought into being in a very tenuous way.

Its mission is to bring its ancestors [thought of as daemons] out of an abyss from which they cannot escape [Cthulu mythos etc] and seek to open up a gate or portal Yog Sothoth to enable them to do so. For this, they need lots of pure aryans.

The occult ritual and ceremony [satanic/druidic etc] they perform on Aryan sacrifices serves several purposes.

Because the Reptiles allegedly cannot call up their lost mates from the abyss, they need the magical/spiritual properties of the Aryans to do the ceremony for them. They turn up - after ritual has been rigourously followed, and give their special team of shape changers in this dimension encouragement to carry on looking for the way to go with the escape of the 'demons' from their abyss. Various MK-slaves are there, some get eaten some get 'orgied' - flesh and blood is devoured especially that of the sacrifice - a female whose combination of blood; preferred menstrual [thats why satanic/druidic ritual goes with the full moon] - and with the secretion from the pineal gland stimulated by intense fear, the sacrifice drives the Reptiles wild with carnage.

The pineal gland or third eye in human terms is an alien piece of biochemistry in the human race - as any biochemistry text book will tell of its reptilian biochemistry - so it leads us to wonder whether or not the Aryan Race was a phase 2 hybrid created by the Shape Changing reptiles so that they could colonise this sector of the '3' dimensional cosmos.

Reptiles could do with a pineal gland - because they want its mystical powers, but it looks like they have been unable to integrate this organ into their own being - as it gives access to dimensions of incredible energy and spiritual purity that would be a bit off-putting to a species hell bent on slaughter. The Reptiles are trying to bring through the 'Old Ones' in fact as characterised by HP Lovecraft in 'the Dunwich Horror'.

They have a hypnotic gaze which fixes the victim - in a trance of terror - which promotes secretion of the pineal gland - at that point, they cannot hold human form any longer and shape shift in anticipation of supper. They have a pecking order at bloodfest ceremonies, and seem to need more and more blood these days as the planetary food supply is deteriorating in quality. [must be the additives etc]

They have therefore capitalized on every Druidic and Magical date to try to get as much use out of the effect of the lunar cycle on female menstrual blood. They call this aspect of the menstrual blood Starfire, and indeed, one of the people in the UK Arizona Wilder 'fingers' as a Shape Shifter called lawrence Gardiner has written an article about 'Starfire and menstrual blood' in Nexus magazine. he is also behind the 'Order of the Dragon' an attempt to assemble and register the pure bloodstock of the UK in London.

A list of other people Arizona Wilder says that she has seen shapeshift into Reptiles at these rituals;

USA: Bush and 2 sons, Albright, Kissinger, Reagan and Nancy, J Rockefeller, Ford, Carter and LB Johnson. EUROPE: Queen Mum, Queen Liz II, Princess Margaret, Charles, Tony Blair, and prince Philip, Zecharia Sitchin, Laurence Gardiner.

The big International and Interstellar leader she says is a chap called the Marquis de Libero - aka Pindar [phallus of the Dragon] who provides superior seed to impregnate the specially bred Aryan and Bloodline Children with - including - Princess Diana - who brought forth Prince William - Pindar's son.

In the underground vaults of his castle in the Alsace Region of France, green glowing flourescent rocks turn stored menstrual blood black to be used at that special ritual - whilst in the great heat, clutches of Reptile Eggs incubate.

The Queen Mother is second to Pindar/Libero and she is carried on a rich ornate chair before she changes into something much bigger and stronger. At the ceremonies, voluminous robes of red or purple richly decorated with gold, sewn jewels, and embroidered 'fleur de lis' are worn, not any human clothes for these would tear during the shift.

All the British House apparently have jewel encrusted goblets to drink the blood from the symbolic female 'grail' and a symbolic dagger to give it a bit of a stir. Arizona Wilder then went on to describe the appearance of the British Royal family when they have underwent the shape shift.

The Queen mum is 8 feet tall, with a snout, and fangs. All have a long tongue with hair-like protrusions - with claws for hands and feet. They have scales and these seem to disappear into one another, this, more pronounced on the back. Some have vestigial wings, all have a tail usually kept curled which is whipped about when agitated.

The Queen Mum has a beige belly and more darkly speckled and mottled brown from the head and spine. The body has protrusions running down the spine. The eyes are large and round, protruding, varying in colour from beige to yellow to yellow green - with a black vertical slit for a pupil - the eyes can be hooded. Charles apparently has two large protrusions just above where his human ears are.

The Queen [Liz II] is much darker, all over much more homogenous in marking, where the colours gradually and smoothly change to the head, tail and back.

Arizona Wilder says that the princess Diana death was a ritual public sacrifice to usher in the Age of Horus [Egyptian magical tradition - rebirth of the dead god Osiris]. Because the magicians like to mirror dates, the dark goddess Hecate's number is 13, which was why the 31st August was chosen.  (The mirror effect of numbers)

It was a mirror of a Isis, Osiris, Horus ritual because 3 people died and the unborn baby Diana was carrying was the very special 3 months old. Apparently Baron Rothschild had to be in the tunnel at the 13th pillar where the accident happened to take the soul of Diana - and indeed an ambulance did arrive on the scene a minute after the crash. The driver Henri Paul was Mind Controlled and trained for the crash. Bits of Diana were then eaten by the hierarchy. Arizona Wilder has said that some Spencers were there at these Rituals, but that Diana would not attend - and that symptoms of Bulemia and Anorexia were mind control techniques used on her.

Wilder also said that the smell of Diana's periods would have caused Charles to shape shift - especially whilst sleeping because the Reptiles cannot retain their human form without concentration.

Arizona Wilder came across as sincere with this disturbing account and spoke of the hideous abuse to which herself and her children had been subject. .

Andrew Hennessey
Transformation Studies Group
Edinburgh Scotland

Pindar called Sirius "the shape-shifting dog of the Great Goddess." Chinese astronomers knew it as the Celestial Jackal (Lang) that legendary figures used for target practice (with the constellation Hu or Hushi, "bow").



The Illuminati heirachy and the real meaning of 'America'

The Illuminati Hierarchy

The leader of the Earths Illuminati is called the "Pindar". The Pindar is a member of one of the 13 ruling Illuminati families, and is always male. The title, Pindar, is an abbreviated term for "Pinnacle of the Draco", also known as the "Penis of the Dragon". Symbolically, this represents the top of power, control, creation, penetration, expansion, invasion, and fear. The holder of this rank reports to the purebred Reptilian leader in the inner Earth.

Recently, there are reports that the Marquis de Libeaux is the Pindar, but this is disinformation. The true current Pindar is the head of the Rothschild family, as has been for several hundred years. He is based in Germany near Frankfurt. In the late 1970s, he oversaw the sister project to Montauk, called M.A.L.D.A. is an anagram for Montauk-Alsace-Lorraine Dimensional Activation. This project was located near the city of Strasbourg, France, historically once part of Germany.

Interestingly, there is a winery on the east end of Long Island, not far from Montauk Point, called Pindar Vineyards. This wine is growing in popularity, gaining international accolades. This fits nicely into the plan, as this area will be a part of the capital district of the Earth/United Nations in the Empire State! Red wine is symbolic of the blood ingested by the Reptilians. The wine can become sanctified as it did in the Roman Catholic Church, a patsy for the Reptilians. In the Catholic Church, wine replaced the blood in ceremony.

The Illuminati here on Earth have established a pyramid structure of control identical to the system that exists in the Draco Empire. The pyramid with the Reptilian eye, located on the American one-dollar bill, is symbolic of this control structure. The eye is the cap on the pyramid, thus explaining why the original surface of the Great Pyramid in Egypt was capped in solid gold.

The Pindar is represented by the gold cap on the pyramid. The next layer, or "eye", on the pyramid represents the 13 ruling families. They are as follows:

Rothschild (Bauer or Bower) - Pindar
Cavendish (Kennedy)
De Medici
Sinclair (St. Clair)
Warburg (del Banco)
Windsor (Saxe-Coburg-Gothe)

Each of the 13 ruling families is given an area of the Earth and/or a particular function to fulfill on the Earth. These particular functions include global finances, military technology/development, mind-control, religion, and media.

Each of the 13 ruling families has a council of 13 as well. The number, 13, has great significance to them. They know that there are 12 types of energies that pass through the 10 aspects of God-Mind. The totality of the 12 energies equals a 13th energy. This is considered the most powerful knowledge.

They also know that there are really 13 Zodiac signs, not the commonly acknowledged 12. They have kept the 13th hidden for centuries because it is the sign of the Dragon. They keep the qualities and traits of this sign secret to avoid giving away clues to the Reptilian mind-pattern.

The next layer is the second-in-command families who do the support work for the Pindar and 13 ruling families. While all of the 13 ruling family members are shapeshifters, all members of the 300 supporting families are not. They do, however, all have a high percentage of Reptilian DNA.

They are known as the "Committee of 300".These families include such notable names as Agnelli, Balliol, Beale, Bell, Bouvier, Bush, Cameron, Campbell, Carnegie, Carrington, Coolidge, Delano, Douglas, Ford, Gardner, Graham, Hamilton, Harriman, Heinz, Kuhn, Lindsay, Loeb, Mellon, Montgomery, Morgan, Norman, Oppenheimer, Rhodes, Roosevelt, Russell, Savoy, Schiff, Seton, Spencer, Stewart/Stuart, Taft, and Wilson. There are many others.

The Committee of 300 use many well-known institutions to accomplish their goals, including the Council on Foreign Relations, Bilderburgers, Trilateral Commission, Club of Rome, Royal Institute for International Affairs, Mafia, CIA, NSA, Mossad, Secret Service, International Monetary Fund, Federal Reserve, Internal Revenue Service, and Interpol, to name a few. All of these are private organizations or corporations set up as public service devices, but this is far from the truth.

The Illuminati structure also creates artificial countries to further their goals. Examples of these are the United States, Switzerland, Kuwait, the Soviet Union, Panama, Israel, Italy, Yugoslavia, the United Kingdom, most of Black Africa, all of the Arab countries, and all of Central and South America. These nations were created to amass wealth for the ruling families and their supporters, to hide or keep their wealth, and to create unstable conditions necessary to start wars or increase military budgets.

Switzerland was created as a neutral banking centre so that Illuminati families would have a safe place to keep their funds without fear of destruction from wars and prying eyes.

The United States was established with 13 colonies, one for each of the Illuminati families. The original flag had 13 stars, and still has 13 stripes. The eagle, the symbol of the United States, holds 13 arrows in its talons. The United States is actually a corporate asset of the Virginia Company that was established in 1604 in England with direct involvement of the Rothschilds. The finances of the Rothschilds were necessary to fund the exploration and exploitation of the North American continent.

The assets of the Virginia Company, including the United States, are owned by the Holy Roman Empire via the Vatican. This occurred in 1213 when King James gave all English assets to the Reptilian Pope. Executorship remains with the British royal family, but actual ownership lies with the Roman Catholic Church.

The United States of America is not named after Amerigo Verspucci, as you learned in school. The Illuminati would never name a continent, actually two continents, after an Italian mapmaker. The name is actually a combination of words. "Am" is the Hebrew word for "people". "Ame" is also the command form of the Spanish/Latin verb "to love". "Eri" or "ari" is a Hebrew term for "lion". "Rica" is the feminine form of the Spanish word for "rich". "Ka" is the ancient Egyptian word for soul, or spirit force within a body.

There are two layers of meanings. The Ancient Hebrew/Egyptian translates to say, "the people of the lion with spirit force". Hence, the pyramid and all-seeing eye on the one-dollar bill. The Latinized version translates to say, "love riches", in a feminized/physical reality way. This gives an idea of what they had in mind.

Take this a step further, and one sees the mixture of the feminine Latin/eagle ideas with the masculine Hebrew/lion ideas. The symbolic statement of America is that it is a combination of Lemuria and Atlantis; a blend of the human/Lyrae with Reptilian/Draco. Perhaps the anagram LSD, an Illuminati created drug, has a hidden meaning as well:

Lyrae-Sirius-Draco! The combination of these three civilizations would produce the most powerful, technological Empire ever known!

In 1776, the creation of the United States as an independent nation coincided with the declaration into public existence of the official Illuminati organization by member Adam Weishaupt, in Bavaria. Publicly, Mr. Weishaupt appeared to be determined to create an organization comprised of the European elite that would uplift mankind.

Of course, this was part of an Illuminati global ceremony. The creation for the United States and the Illuminati global ceremony. The creation of the United States and the Illuminati organization were artificial beginnings for public consumption. The United States was the device to be used to bring the Illuminati into public acceptance. Current Illuminati members believe that Adam Weishaupt was a look-alike for George Washington, and it is actually Weishaupts image that appears on the one-dollar bill.

George Washington was a wealthy slave and plantation owner. He is known to have raped some of his female slaves and used some of the male slaves in ritualistic ceremony. There are many people of the Black race who can literally trace their genetics to the founding fathers. George Washington also ordered the building of the Montauk Lighthouse in 1796. This lighthouse included an underground area for supply storage in case of a British coastline invasion. If he had only known what that area would become - or did he?

The 13 ruling Illuminati families constantly vie for control amongst themselves. During this time period, the Spanish, British, and French Illuminati all fought to win control over North and South America. The Rothschilds kept these Illuminati factions in line by sending Hessian troops to monitor the situation. The leaders enjoyed these war games, pitting one against the other to see who would win. The hundreds of thousands of lives lost were meaningless to them.

The Manifest Destiny of the United States was created to expand the territory of the Aryans at the expense of the native populations. As always, the Illuminati seek to destroy native peoples and their cultures. This is an attempt to destroy their knowledge of God-Mind, as well as the possibility that the natives will impart this information on to others. Especially important is their need to eliminate native cultures with ancient knowledge of Atlantis and Lyrae.

The natives that gave them the most problem were the Cherokee Indians because this tribe retained most of their Atlantean knowledge, even accessing the Bear/Bigfoot frequency for information. For this reason, these people were uprooted from their homeland in the southern Appalachian Mountains, and forcibly marched to Oklahoma on what is now known as The Trail of Tears. Many died along the way. Only a remnant remained in North Carolina, Tennessee, and Georgia. In the north, the vast Iroquois/ Mohawk nation was disbanded. The Montauk, direct descendents of the Atlanteans who call their leader Pharaoh, were systematically eliminated.

The Rothschilds were aggressively involved with the slave trade from Africa, importing slaves to North and South America as well as the Caribbean. They were very careful not to import Blacks from the eastern areas of Ethiopia or Sudan where the descendents of Solomon were located, instead concentrating on western and central Africa for the slave populations. These areas had the pure mixture of Annunnakki and simian genetics, and the programming desirable for the Illuminati agenda.

The Rothschilds decided that splitting the United States colonies would double their profits. So they politically created, and financially supported, the Civil War. The Civil War was actually a global ceremonial ritual to bring slavery to its next level. This war allowed the North to win, and publicly abolish slavery. The best slaves are the ones who do not realize that they are slaves. This alleviates rebellion and resistance. This was the status immediately following the Civil War. Blacks in the South are still slaves. There is still segregation, even in the North. The Illuminati still consider Blacks to be second or third class citizens. Only now the slavery is subtle and masked.

Since the Civil War, there have been other staged wars that entrenched the trend toward globalization. The Spanish-American War of 1898-1899 acquired more land for the American Illuminati, placing a greater portion of the Earth's surface under American jurisdiction. World War I was designed to change the map of Europe as well as test germ and chemical warfare technology for future use. This coincided with the worldwide influenza outbreak designed to reduce the global population, making control easier. World War I also laid the foundation for the German role in the next war.

World War II was a test of the final globalization and extermination projects. It was also designed to test mind-control machinations; to test the use of fluoride which deadens brain activity and slows resistance to authority; to experiment with slave labor camps and study the development of resistance; and to teach the masses to spy and report on one another.

World War II brought three primary goals of the Illuminati to fruition. The first was that hidden Illuminati symbolisms were brought to public attention from the underground strongholds in Tibet and Egypt, such as the Swastika and the ankh. The second was the creation of the State of Israel as a foundation for the New World Religion. The last was the creation of nuclear weapons as part of the Illuminati global ceremony.

During World War II, the Germans helped to perfect "sex-slaves" as a means of transmitting information amongst the elite. Sex-slaves can be either male or female, who are sexually programmed using Wilhelm Reich procedures, which are illegal in the United States, but used by the Illuminati and government.

These sex-slaves deliver messages and keep programmed sleepers in line. The sex-slave is downloaded with a message or function through various sexual acts and drugs, which can only be released by repeating the same sexual act with the target, or person, to be activated. They are trained to know their target's trigger words and trigger events to activate, delete, or change programming.

In recent years, several women have come forward claiming to be the sex-slaves of globally recognized political figures. Many were used as information couriers between high-level male Illuminati. Usually, lookalikes of the political figures are used in the incipient programming as a focal point for the sex-slave. The slave is put through a desensitizing process, so there is no pleasure in the sexual act; it is merely a duty to be performed. Many times the slave becomes sexually promiscuous, repeatedly having sex with people who look like the intended target. It is a sad life.

By the end of World War II, one of the three major Illuminati global rituals was accomplished. This was the nuclear explosion that took place in 1945 at the 33rd parallel as a test for the nuclear attack on Japan. This explosion was symbolic, representing the simultaneous creation and destruction of matter and energy. The year was symbolic as well. In numerology, 1 + 9 = 10, representing the 10 aspects of God-Mind. The number 10 further breaks down to 1 + 0 = 1, representing a new beginning. Continuing, 4 + 5 = 9, representing the end of a cycle. Symbolically, the entire event represented the end of a cycle to prepare for a new beginning using the new creation of God-Mind out of destruction.

Additionally, a cylinder containing material still not explained by the government was trucked into the nuclear explosion testing. This cylinder was made from pure steel and allegedly was the same physical dimensions as the Kabala describes for the creation of Golems. Kabala is ancient Hebrew metaphysics that has been a staple for the Illuminati for millennia. Golems are artificial beings that are used as a slave force. It is highly probable that this was a symbolic ritual for the creation of the society of Golems.

World War II also allowed the European/American Illuminati to destroy the Japanese Illuminati desires of global domination. The Japanese royal family, represented by Emperor Hirohito, have always been ostracized as non-legitimate by the ruling 13 families. The Japanese claim to be direct descendents of Lemurian purebred Reptilians.

The European/American Illuminati claim that the Japanese Illuminati are descendents from a lower species in the Draco hierarchy. This lower species is considered a worker class without any political clout or influence. The European/American Illuminati also claim that East Indians are a lower species in the Draco hierarchy. The 13 ruling families consider light skin and hair to be an elite characteristic.

On January 17, 1994, Japan sent a seismic event to California. Exactly one year later on January 17, 1995, the city of Kobe, Japan was seismically destroyed. Kobe was the home of the Japanese electromagnetic weaponry centres. The European/American Illuminati will not tolerate thorns in their sides. The destruction of Japan and its royal family will continue in the coming months.

Every year, the Illuminati hold meetings to plan the events of the coming year to accomplish their main objective formulated millennia ago of global control and domination. In the 1850s, they pinpointed their target date for complete domination with an agenda called Plan 2000. This has since been revised to 2003. The fiasco election of George W. Bush Jr. to office is a key sign that they are on target. The public lesson of the United States presidential "election" of 2000 is that the citizens do not vote for anyone! Even the Illuminati are now finding it increasingly difficult to conceal their plans.





October 9, 2007 (revised) (originally released May 2, 2007) | EPI Briefing Paper #188

Costly Trade With China
Millions of U.S. jobs displaced with net job loss in every state

by Robert E. Scott

See media kit

Contrary to the predictions of its supporters, China's entry into the World Trade Organization (WTO) has failed to reduce its trade surplus with the United States or increase overall U.S. employment. The rise in the U.S. trade deficit with China between 1997 and 2006 has displaced production that could have supported 2,166,000 U.S. jobs. Most of these jobs (1.8 million) have been lost since China entered the WTO in 2001. Between 1997 and 2001, growing trade deficits displaced an average of 101,000 jobs per year, or slightly more than the total employment in Manchester, New Hampshire. Since China entered the WTO in 2001, job losses increased to an average of 353,000 per year—more than the total employment in greater Akron, Ohio. Between 2001 and 2006, jobs were displaced in every state and the District of Columbia. Nearly three-quarters of the jobs displaced were in manufacturing industries. Simply put, the promised benefits of trade liberalization with China have been unfulfilled.

As a matter of policy, China tightly pegs its currency's value to that of the dollar at a rate that encourages a large bilateral surplus with the United States. Maintaining this peg required the purchase of about $200 billion in U.S. Treasury Bills and other securities in 2006 alone.1 This intervention makes the yuan artificially cheap and provides an effective subsidy on Chinese exports; best estimates are that the rate of this effective subsidy is roughly 40%. China also engages in extensive suppression of labor rights; it has been estimated that wages in China would be 47% to 85% higher in the absence of labor repression. China has also been accused of massive direct subsidization of export production. Finally, it maintains strict, non-tariff barriers to imports. As a result, China's exports to the United States of $288 billion in 2006 were six times greater than U.S. exports to China, which were only $52 billion (Table 1). China's trade surplus was responsible for 42.6% of the United States' total, non-oil trade deficit. This is by far the United States' most imbalanced trading relationship. Unless and until China revalues (raises) the yuan and eliminates these other trade distortions, the U.S. trade deficit and job losses will continue to grow rapidly in the future.

Major findings of this study:

  • The 1.8 million jobs opportunities lost nationwide since 2001 are distributed among all 50 states and the District of Columbia, with the biggest losers, in numeric terms: California (-269,300), Texas (-136,900), New York (-105,900), Illinois (-79,900), Pennsylvania (-78,200), North Carolina (-77,200), Florida (-71,900), Ohio (-66,100), Georgia (-60,400), and Massachusetts (-59,300) (Table 2A).

  • The 10 hardest-hit states, as a share of total state employment, are: New Hampshire (-13,000, -2.1%), North Carolina (-77,200, -2.0%), California (-269,300, -1.8%), Massachusetts (-59,300, -1.8%), Rhode Island (-8,400, -1.8%), South Carolina (-29,200, -1.6%), Vermont (-4,900, -1.6%), Oregon (-25,700, -1.6%), Indiana (-45,200, -1.5%), and Georgia (-60,400, -1.5%) (Table 2B).

China's entry into the WTO was supposed to bring it into compliance with an enforceable, rules-based regime, which would require that it open its markets to imports from the United States and other nations. The United States also negotiated a series of special safeguard measures designed to limit the disruptive effects of surging Chinese imports on domestic producers. However, the core of the agreement failed to include any protections to maintain or improve labor or environmental standards. As a result, China's entry into the WTO has further tilted the international economic playing field against domestic workers and firms, and in favor of multinational companies (MNCs) from the United States and other countries, and state- and privately-owned exporters in China. This has increased the global "race to the bottom" in wages and environmental quality and caused the closing of thousands of U.S. factories, decimating employment in a wide range of communities, states, and entire regions of the United States.

Table 1

False promises
Proponents of China's entry into the WTO frequently claimed that it would create jobs in the United States, increase U.S. exports, and improve the trade deficit with China. President Clinton claimed that the agreement allowing China into the WTO, which was negotiated during his administration, "creates a win-win result for both countries" (Clinton 2000, 9). He argued that exports to China "now support hundreds of thousands of American jobs" and that "these figures can grow substantially with the new access to the Chinese market the WTO agreement creates" (Clinton 2000, 10). Others in the White House, such as Kenneth Liberthal, the special advisor to the president and senior director for Asia affairs at the National Security Council, echoed Clinton's assessment:

Let's be clear as to why a trade deficit might decrease in the short term. China exports far more to the U.S. than it imports [from] the U.S….It will not grow as much as it would have grown without this agreement and over time clearly it will shrink with this agreement.2

Promises about jobs and exports misrepresented the real effects of trade on the U.S. economy: trade both creates and destroys jobs. Increases in U.S. exports tend to create jobs in the United States, but increases in imports tend to destroy jobs as imports displace goods that otherwise would have been made in the United States by domestic workers.

The impact of changes in trade on employment is estimated here by calculating the labor content of changes in the trade balance—the difference between exports and imports. Each $1 billion in computer exports to China from the United States supports American jobs. However, each $1 billion in computer imports from China displaces those American workers, who would have been employed making them in the United States. On balance, the net employment effect of trade flows depends on the growth in the trade deficit; not just exports. Another critically important promise made by the promoters of liberalized U.S.-China trade was that the United States would benefit because of increased exports to a large and growing consumer market in China. This market, in turn, was to be based on an expansion of the middle class that, it was claimed, would grow rapidly due to the wealth created in China by its entry into the WTO. However, the increase in U.S. exports to China has been overwhelmed by the growth of U.S. imports, as shown below.

Growing trade deficits and job losses
The U.S. trade deficit with China has increased from $50 billion in 1997 to $235 billion in 2006, an increase of $185 billion, as shown in Table 1. Between 1997 and 2001, prior to China's entry into the WTO, the deficit increased $9 billion per year on average. Between 2001 and 2006, after China entered the WTO, the deficit increased $30 billion per year on average.

While it is true that exports support jobs in the United States, it is equally true that imports displace them. The net effect of trade flows on employment must look at the trade balance. The employment impacts of growing trade deficits are estimated in this paper using an input-output model that estimates the direct and indirect labor requirements of producing output in a given domestic industry. The model includes 200 U.S. industries, 86 of which are in the manufacturing sector (see this paper's methodology appendix for further details).3

The model estimates the labor that would be required to produce a given volume of exports, and the labor that is displaced when a given volume of imports is substituted for domestic output.4 The job losses presented here represent an estimate of what sectoral employment levels would have been in the absence of growing trade deficits.5

U.S. exports to China in 1997 supported 138,000 jobs, but U.S. imports displaced production that would have supported 736,000 jobs, as shown in the bottom half of Table 1. Therefore, the $49 billion trade deficit in 1997 displaced 736,300 jobs in that year. Job displacement rose to 1,000,000 jobs in 2001 and 2,763,000 in 2006. Prior to China's entry into the WTO, an average of 101,000 jobs per year were displaced by growing trade deficits between 1997 and 2001. After 2001, an average of 353,000 jobs per year were lost.

Growth in trade deficits with China has reduced demand for goods produced in every region of the United States and has led to job displacement in all 50 states and the District of Columbia, as shown in Table 2A and Figure A.6 More than 100,000 jobs were lost in California, Texas, and New York each. Jobs displaced due to growing deficits with China equaled or exceeded 2.0% of total employment in states such as North Carolina and New Hampshire, as shown in Table 2B. An alphabetical list of job losses by state is shown in Table 2C.

Figure A

Growing trade deficits with China have clearly reduced domestic employment in traded goods industries, especially in the manufacturing sector, which has been hard hit by plant closings and job losses. Workers displaced by trade from the manufacturing sector have been shown to have particular difficulty in securing comparable employment elsewhere in the economy. More than one-third of workers displaced from manufacturing drop out of the labor force (Kletzer 2001, 101, Table D2). Average wages of those who secured re-employment fell 11% to 13%. Trade-related job displacement pushes many workers out of good jobs in manufacturing and other trade-related industries, often into lower-paying industries and frequently out of the labor market.

Some economists have quibbled with job-loss numbers extrapolated from trade flows, based on the presumption that aggregate employment levels in the United States are set by a broad range of macroeconomic influences, not just by trade flows. There is a grain of truth to this—the trade balance is but one of many variables affecting aggregate job creation in the United States.

That said, the employment impacts of trade identified in this paper can be interpreted as the "all else equal" effect of trade on domestic employment. The Federal Reserve, for example, may decide to cut interest rates to make up for job loss stemming from deteriorating trade balances (or any other economic influence), leaving net employment unchanged. This, however, does not change the fact that trade deficits by themselves are a net drain on employment.

Administration officials and other economists have argued that the capital inflow that is the mirror-image of trade deficits supports jobs in the United States by keeping interest rates lower than they would be absent this inflow. During the late 1990s, for example, these capital inflows fought rising trade deficits to a draw in terms of aggregate employment effects, and, through much of the 2000s recovery, interest-sensitive industries (housing and construction, for example) have surely expanded more than they would have absent foreign capital inflows. While these claims may be correct from a simple accounting standpoint, they do not support assertions that trade flows are a useless indicator of job loss.

First, and most simply, it is just not true that foreign capital inflows always make up trade-induced employment losses one-for-one. In the 2001 recession and the jobless recovery following, growing trade deficits accompanied aggregate job loss, even as interest rates scraped historical bottoms. Clearly, low interest rates do not always translate into enough growth in investment and consumption in interest-sensitive sectors to always sterilize the impact of growing trade deficits.

Second, the job-loss numbers identified in this report are a good measure of just how unbalanced the U.S. economy has become due to rising trade deficits. Tradable goods industries have hemorrhaged jobs, while interest-sensitive, often non-tradable, industries have seen rapid growth. At that point in the future when trade deficits begin to close (and this will happen—it is only a question of when and how), the U.S. economy will need to return many of the jobs displaced by rising trade deficits out of non-tradable and into tradable industries. Moving millions of workers back and forth between sectors is no mean trick, and accomplishing it without a recession in between will be hard; trying to do it after another couple of years of deficit growth—and an even more lopsided U.S. economy—will be even harder.

In short, while aggregate employment in the United States may well not respond job-for-job with the numbers reported in this paper on trade deficits with China, these numbers provide insight into how much harder other macroeconomic influences have to work to eliminate the employment drag from these deficits, and they provide a good (and ominous) measure of how lopsided employment growth in the U.S. economy has become owing to the unbalanced U.S.-China trade relationship.

The growing U.S. trade deficit with China has displaced huge numbers of jobs in the United States, and been a prime contributor to the crisis in manufacturing employment over the past six years. The current U.S.-China trade relationship is bad for both countries. The United States is piling up foreign debt, losing export capacity, and facing a more fragile macroeconomic environment. Meanwhile, China has become dependent on the U.S. consumer market for employment generation, has suppressed the purchasing power of its own middle class with a weak currency, and, most importantly, has held hundreds of billions of hard-currency reserves in low-yielding, risky assets, instead of investing them in public goods that could benefit Chinese households. Its repression of labor rights has suppressed wages, thus subsidizing its exports and making them artificially cheap. This relationship needs a fundamental change: addressing the exchange rate policies and labor standards issues in the Chinese economy are important first steps.

April 2007

The author thanks Lauren Marra for her research assistance
and Josh Bivens and Ross Eisenbrey for comments.

This research was made possible by generous support
from the Alliance for American Manufacturing.

This analysis utilizes an input-output model to estimate the relationships between changes in trade flows and production that could support domestic employment. The analysis covers trends in goods trade, which is dominated by manufactures. Services trade is not considered because of problems with the data, and because many of the services traded involve returns to capital and intellectual property that have little or no direct effect on employment. In addition, goods trade dominates the nation's international accounts.

This study uses the model developed in Rothstein and Scott (1997a and 1997b). This approach solves four problems that are prevalent in previous research on the employment effects of trade. Some studies look only at the effects of exports and ignore imports. Some studies include re-exports (transshipments)—goods produced outside the United States and shipped through this country to other nations—as U.S. exports. The trade data used in many studies is usually not adjusted for inflation. Finally, a single employment multiplier is often applied to all industries, despite differences in labor productivity and utilization.7

The model used here is based on the Bureau of Labor Statistics' employment requirements tables, which were derived from the U.S. input-output tables that are published by the Bureau of Economic Analysis. These tables are adjusted to 2000 price and productivity levels (BLS 2007b), in real, chain-weighted 2000 dollars. A base year with 2000 employment requirements was used to estimate the employment content of trade in all years covered in this study. This assumption was needed to control for the effects of technology. This technique isolates the effects of trade on employment from pure technology effects. This model is used to estimate the direct and indirect effects of changes in goods trade flows in each of 200 industries. This study updates the 1987 input employment requirements table used in earlier reports in this series (Rothstein and Scott 1997a, 1997b).

This analysis requires four-digit, trade data based on the North American Industry Classification System (NAICS) (U.S. International Trade Commission 2007), deflated with industry-specific, chain-weighted price indices (BLS 2007a), which were updated using industry-specific producer price indexes (BLS 2007b).8 Trade data were downloaded from the U.S. International Trade Commission (2007) Web site in NAICS format. The data for 2006 are preliminary estimates; this report will be updated and expanded when the final 2006 trade data are released in June 2007. State-level employment effects are calculated by allocating imports and exports to the states on the basis of their share of four-digit, industry-level employment for 2000 (U.S. Census Bureau 2001).

The trade data were converted into chain-weighted 2000 dollars. A domestic employment requirements table for a particular base year was used to estimate the employment effects of trade in each year of the analysis, holding technology constant. The domestic employment requirement calculates the labor required to produce all of a given product within the United States. Thus, it reflects the complete labor content of output, including jobs indirectly supported in service industries. The base year of 2000 was chosen for this study because it was an approximate mid-point in the data covered in this study.

CPS data on employment by industry by was collected for each of the detailed sectors in the model. These data were used to calculate each state's share of national employment.


Bureau of Labor Statistics, Office of Employment Projections. 2007a. Special Purpose Files—Industry Output and Employment. Washington, D.C.: U.S. Department of Labor.

Bureau of Labor Statistics, Office of Employment Projections. 2007b. Special Purpose Files— Employment Requirements. Washington, D.C.: U.S. Department of Labor.

Bureau of Labor Statistics. 2005. Access to historical data for the "B" tables of the Employment Situation News Release.

Clinton, William J. 2000. Expanding trade, protecting values: Why I'll fight to make China's trade status permanent. New Democrat, Vol. 12, No. 1, pp. 9-11.

Faux, Jeff. 2007. Globalization That Works for Working Americans. Briefing Paper #179. Washington, D.C.: Economic Policy Institute.

Kletzer, Lori G. 2001. Job Loss From Imports: Measuring the Costs. Institute for International Economics. Washington, D.C.: IIE.

Ratner, David. 2006. "Appendix: Methodology and Data Sources", in Faux, Jeff, Bruce Campbell, Carlos Salas, and Robert Scott. 2006. Revisiting NAFTA: Still Not Working for North America's Workers. Briefing Paper. Washington, D.C.: Economic Policy Institute.

Rothstein, Jesse and Robert E. Scott. 1997a. NAFTA's Casualties: Employment Effects on Men, Women, and Minorities. Issue Brief. Washington, D.C.: Economic Policy Institute.

Rothstein, Jesse and Robert E. Scott. 1997b. NAFTA and the States: Job Destruction is Widespread. Issue Brief. Washington, D.C.: Economic Policy Institute.

Scott, Robert E. 2005. U.S.—China Trade, 1989-2003: Impact on Jobs and Industries, Nationally and State-by-State. Working Paper # 270. Washington, D.C.: Economic Policy Institute. January.

U.S. Census Bureau. 2001. 2000 Basic Monthly Survey of the Current Population Survey. U.S. Department of Commerce, U.S. Census Bureau. Washington, D.C.: U.S. Department of Commerce.

U.S. International Trade Commission. 2007. USITC Interactive Tariff and Trade Data Web.


1. These purchases financed about one-quarter of the U.S. $857 billion current account deficit in 2006 (the broadest measure of all U.S. trade and income flows). But for these purchases, the reduced demand would have put significant downward pressure on the U.S. dollar. A substantial depreciation in the dollar would begin to improve the U.S. trade deficit within a few years.

2. NewsHour with Jim Lehrer transcript. 1999. "Online NewsHour: Opening Trade—November 15, 1999."

3. See Ratner (2006) for a more complete, technical description of this model.

4. For the purposes of this report, it is necessary to distinguish between exports produced domestically and re-exports—which are goods produced in other countries, imported into the United States, and then re-exported to other countries, in this case to China. Since re-exports are not produced domestically, their production does not support domestic employment and they are excluded from the model used here. See Table 1 for information about the levels of U.S. re-exports to China in this period.

5. This model assumes that everything else is held constant and the results are counterfactual estimates.

6. See the methodology appendix for computational details.

7. Other studies—see California State World Trade Commission (1996), which finds 47,600 jobs created in California from increased trade with Canada alone—have allocated all employment effects to the home state of the exporting company. This is problematic, because the production—along with any attendant job effects—need not have taken place in the exporter's state. If a California dealer buys cars from Chrysler and sells them to China, these studies will find job creation in California. However, the cars are not made in California; so the employment effects should instead be attributed to Michigan and other state with high levels of auto industry production. Likewise, if the same firm buys auto parts from China, the loss of employment will occur in auto-industry states, not in California.

8. Industry-specific producer price indices are unavailable for certain industries between 2005 and 2006. In order to construct price deflators for all 200 BLS industries, we used a combination of commodity PPIs and industry PPIs. For instance, NAICS-based industry 3331 (which maps to BLS industry 72) is composed of agricultural, manufacturing, and mining machinery manufacturing. To compute a price index for this industry, a trade-weighted average of the commodity indices for agricultural machinery and construction machinery was used as a proxy for the industry PPI. Industry PPIs were used wherever available.

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2008 EU-U.S. Summit Declaration

We, the leaders of the European Union and United States of America, met today in Brdo, Slovenia to further strengthen our strategic partnership. We view this Summit, and the fact that it is being hosted by Slovenia in its role as Presidency of the Council of the EU, as symbolic of our endeavour to realise a free, democratic and united Europe. The process of unifying Europe is one of the outstanding historical legacies of our partnership over the past half century.

The strategic partnership between the EU and the U.S. is firmly anchored in our common values and increasingly serves as a platform from which we can act in partnership to meet the most serious global challenges and to advance our shared values, freedom and prosperity around the globe. We seek a world based on international law, democracy, the rule of law and human rights, and strengthened by broad and sustainable market-based economic growth. The bond between the EU and the U.S. has proven its resilience through times of difficulty, and we continue to demonstrate global leadership and effective transatlantic co-operation in the face of the most pressing challenges of our day:

  • Promoting international peace, stability, democracy, human rights, international criminal justice, the rule of law and good governance;
  • Working together in conflict prevention and post-conflict reconstruction;
  • Fighting the scourge of terrorism while protecting the fundamental freedoms on which our democratic societies are built;
  • Encouraging the world’s fast-growing economic powers to assume their responsibilities in the global rules-based system;
  • Fostering an open, competitive and innovative transatlantic economy, through free  movement of goods, persons, services and capital, while working together towards a prompt, balanced and ambitious agreement in the WTO Doha Round that creates new market access and strengthens growth in both developed and developing nations;
  • Combating climate change, promoting energy security and efficiency, helping developing nations lift themselves out of poverty, and fighting the most crippling infectious diseases.

An effective response to these challenges requires transatlantic unity of purpose and effective multilateral approaches. We stand stronger when we stand together especially in meeting new global challenges.

Global Security, Peace, Human Rights and Democracy

In this decisive year for the Western Balkans, we underline the importance of the European and transatlantic perspective as an essential element in promoting stability and economic progress for the whole region. We welcome the commitment of the EU to extend membership to all the countries of the Western Balkans, as soon as necessary conditions are met. We also welcome NATO’s recent decisions to extend its membership into the Western Balkans.

We welcome progress made by Croatia, Serbia, Albania, the former Yugoslav Republic of Macedonia, Bosnia and Herzegovina and Montenegro in the processes of EU and NATO integration. We welcome the signature of the Stabilization and Association Agreement and of the EU Interim Agreement with Serbia as a confirmation of its commitment to a European perspective and an important step on the country's path towards the EU.  We welcome the commitment of all political forces in the former Yugoslav Republic of Macedonia to remain united behind the national consensus to actively pursue Euro-Atlantic integration. We welcome the forthcoming signature of the Stabilisation and Association Agreement with Bosnia and Herzegovina and urge the Bosnian leaders to remain committed to a sustainable reform process.

We will continue to support the stability and security of Kosovo and its regional integration, and will assist Kosovo in its economic and institutional development We note that the Kosovo authorities are committed to the objective of a stable, democratic and multi-ethnic society. We commend NATO’s contributions to Kosovo as well as those of the OSCE.  We will co-operate on completing a smooth transition from UNMIK to EULEX responsibility for the rule of law and its full deployment throughout all of Kosovo, which is essential for the stability of Kosovo. The EU welcomes U.S. participation in the EULEX mission.

We welcome the recent steps forward toward Peace in the Middle East, and will pursue complementary efforts to support the Parties’ efforts to reach a political agreement by the end of 2008, as foreseen at the Annapolis Conference. We are determined to support the subsequent implementation of that agreement, and call again on Israel and the Palestinians to implement their Roadmap obligations in full. The EU and the U.S. are doing important work in the area of Palestinian capacity-building to pave the way for a future democratic Palestinian state living side by side in peace and security with Israel and its other neighbours. We underline the importance of continued broad and constructive involvement by Arab partners and commend the Arab League’s Peace Initiative and its goal of promoting a comprehensive peace in the Middle East. We call on donors, especially those in the region to follow through on and, if possible increase, their pledges and deliver assistance to the Palestinian Authority.

We welcome the election of Michel Suleiman as President of Lebanon. We look forward to the full implementation of the Doha agreement and a full resumption of the functioning of all democratic institutions of the state of Lebanon. We reaffirm our joint commitment to the sovereignty and independence of Lebanon, and our support for its government. We call on all concerned parties, including Syria, to comply with UN Security Council Resolutions 1559, 1701, 1757, and other relevant resolutions, including full cooperation with the Special Tribunal for Lebanon.  We reject the use of violence as a means to achieve political ends, and we reiterate our support for the extension of the full authority of the Government of Lebanon throughout Lebanese territory.

We expect Iran to comply with its international obligations concerning its nuclear activities, including the full and verifiable suspension of enrichment and full cooperation with the IAEA. Iran must fully restore confidence in the exclusively peaceful nature of its nuclear programme through implementation of the Additional Protocol. Iran must provide to the IAEA full disclosure of  any weapons-related work and allow the IAEA to verify that any such work has ceased.  We affirm the dual track strategy on this issue which was reinforced by the incentives package and reiterate our belief that a mutually satisfactory, negotiated solution remains open to Iran. At the same time, we will fully and effectively implement UN Security Council Resolutions 1737, 1747, 1803 and other pertinent resolutions and we are ready to supplement those sanctions with additional measures. We will continue to work together, including through the Financial Action Task Force, to take steps to ensure Iranian banks cannot abuse the international banking system to support proliferation and terrorism. We call upon the Government of Iran to cooperate in the fight against terrorism. We reiterate our concern about Iran's regional policies, especially its continued support for terrorist organisations, and call on Iran to play a responsible and constructive role in the region. We also underline our continued concern about the deterioration of the human rights situation in Iran, especially those of human rights defenders, women and minorities.

We welcome the meetings of the Neighbouring Countries of Iraq and of the International Compact with Iraq, and acknowledge the value and importance of these ongoing processes, which remain essential to achieve security and prosperity in Iraq and in the region as a whole. We encourage the countries in the region to increase engagement with Iraq by opening diplomatic missions in Baghdad, exchanging senior-level visits, and making progress on bilateral debt negotiations. We welcome the more extensive role played by the UN/UNAMI in Iraq in line with UNSCR 1770. We will continue to work jointly in support of the Government of Iraq’s efforts to hold provincial elections as part of its efforts towards national reconciliation and in promoting peace, stability, and security for the benefit of all Iraqis. We encourage all political actors in Iraq to do their utmost to bring an end to violence. We will work with Iraq to hasten its ability to join the WTO. The EU's substantial assistance in Iraq, including more high-level contacts with the Iraqi government, is complemented by negotiating an EU/Iraq Trade and Cooperation Agreement for which we look forward to a rapid conclusion.

We share a long-term commitment towards the stabilisation and development of a democratic Afghanistan.  We appreciate NATO’s work in leading the International Security Assistance Force in Afghanistan, and will work closely to ensure the success of the mission of UN Special Representative Kai Eide. We are enhancing our strategic cooperation on assisting Afghanistan, including expanding the size and scope of our justice and police reform assistance and counter-narcotics efforts. We look forward to reaffirming our long-term commitment to Afghanistan's development at the June 12 Paris Support Conference. We call on the Afghan Government to further invigorate its efforts to improve governance and human rights, including media freedom, and fight corruption, drug production, and drug trafficking, and we call on our international partners to maintain their generosity.

We welcome the recent progress made in Pakistan towards a lasting democratic transition.  We are committed to supporting the new democratically elected government in tackling the many challenges it faces, not least the threat from violent extremism.

We stand ready to work together with Russia on major regional and global issues of mutual concern as we recognise the important and constructive role that Russia should play on the international stage. We encourage Russia to meet its international commitments on human rights and democratic development, including in the Council of Europe and the OSCE.  We also encourage Russia’s engagement in a productive and transparent dialogue aiming at beneficial cooperation, in order to promote democratic values and freedoms. 

We offer our deepest condolences to the people of China for the earthquake victims in Sichuan.  Recognising China's growing role as an engaged member of the international community, we will continue our constructive engagement and  will encourage China to assume a greater role in helping to tackle issues of global concern, such as the international financial and trading system, climate change, sustainable development and the proliferation of weapons of mass destruction. We also encourage greater regional integration as a means for promoting prosperity and stability in East Asia. We are concerned about the recent unrest in Tibet and urge all sides to refrain from further violence. We welcome China’s recent decision to hold talks with the Dalai Lama’s representatives.  We encourage both parties to move forward with a substantive, constructive and results-oriented dialogue at an early date.  We urge China to take substantive steps to allow its citizens to enjoy internationally recognized human rights. We encourage China to address its poor human rights record.

We offer our deepest condolences and reiterate our concern for the Burmese victims of Cyclone Nargis and our commitment to assist them as they recover from this tragedy. We call on the Burmese authorities to meet their commitments to grant access to foreign aid workers to the cyclone affected areas. We confirm our intention to continue our substantial humanitarian aid to the people affected by the disaster, in particular through the combined efforts of the UN, ASEAN, international and local agencies, and NGOs. Separately, we remain deeply concerned at continued repression in Burma/Myanmar as well as the lack of progress toward national reconciliation and a credible transition to legitimate civilian government. We reiterate our support to the Good Offices Mission of the UN Secretary General, and will continue to pressure the Burmese authorities, including implementing targeted sanctions, to embark on an inclusive dialogue with all stakeholders in the country, including Aung San Suu Kyi and other democratic and ethnic minority representatives. We are deeply troubled by the Burmese regime's extension of Aung San Suu Kyi's house arrest on 27 May  and call upon the regime to release her and all political prisoners.

We commend the continued efforts of Ukraine, Georgia and the Republic of Moldova to meet European standards, we welcome their aspirations and we commit to help these countries achieve  their reform goals as soon as possible. We note that NATO leaders sent a clear message in Bucharest that Georgia and Ukraine will become members of NATO. We are ready to work with all appropriate parties to promote resolution of the conflicts in the region. We reiterate our commitment to the principles of sovereignty and territorial integrity of Georgia within its internationally recognised borders, and call on all parties, in particular on Russia,  to support these principles. We welcome the Georgian President’s recent peace initiatives on Abkhazia, as well as the recent direct talks between the parties, hoping that they will contribute to a peaceful resolution to the conflict.

In Belarus, Armenia, Azerbaijan, Kazakhstan, Turkmenistan, Tajikistan, Uzbekistan and Kyrgyzstan we will continue to promote democracy, the rule of law, and respect for human rights. With regard to Belarus, we will continue to hold Belarusian officials responsible for human rights abuses. We call on the Belarusian authorities to release unconditionally and immediately all remaining political prisoners. We condemn the use of coercive measures taken against diplomatic missions in Belarus.

We will continue to act together in order to stabilise Sudan, Somalia and the Great Lakes region of Africa. We will coordinate our efforts to support African Union capacity-building including financial accountability and the development of the African Standby Force. We note the EU commitment to maintain its peacekeeping efforts in eastern Chad in line with commitments and deadlines contained in UNSCR 1778 and commit to work together to increase pressure on Darfur rebels and the Government of Sudan, including through the implementation of sanctions with the goal of accelerating the deployment of the UN/African Union Hybrid Mission in Darfur and promoting the peace process mediated by the UN and AU Special Envoys and in full compliance with UNSCR 1593 and UNSCR 1769.  We will continue to support the full implementation of the Comprehensive Peace Agreement as the bedrock of long-term stability and the way forward for democracy in Sudan.

We call on the government of Zimbabwe immediately to cease the state-sponsored violence and intimidation against its people that has occurred since the 29 March presidential and parliamentary elections and which is so hostile to the tenets of democracy and human rights, and we strongly back the efforts of African leaders to bring about an expeditious resolution to this crisis.  We urge the United Nations Secretary-General to send a team immediately to monitor human rights and to deter further abuses. The announced second round of presidential elections on 27 June presents the opportunity for the Zimbabwean people to express freely and democratically their will, opening the way for delivering political stability to the country. A free and fair presidential runoff is critical to the resolution of the ongoing crisis.

We will continue to work together and in collaboration with partners in Latin America and the Caribbean, to spread the benefits of democracy in the Western Hemisphere; to promote economic opportunity and social development; to uphold democratic institutions and human rights; and to enhance security. We encourage democratic processes in the countries of the region consistent with the Inter-American Democratic Charter. We welcome Cuba's signing of the International Covenant on Civil and Political Rights and urge the government to ratify the Covenant and demonstrate its commitment by unconditionally releasing all political prisoners. We will work together to support human rights, democratic values and an active civil society and the continued exercise of freedom of expression throughout the region. We condemn the taking of hostages in any circumstances whatsoever and call on illegal armed groups to release all hostages.

We will continue acting jointly bilaterally and multilaterally to promote democracy, safeguard peace and human rights and in this regard encourage all governments to promote and protect their citizens' human rights. We have co-sponsored a Declaration in the United Nations General Assembly to highlight the plight of prisoners of conscience throughout the world in honour of the 60th anniversary of the Universal Declaration of Human Rights. We will continue to work cooperatively to promote democratic governance around the world and are prepared to encourage multilateral initiatives such as the Community of Democracies.

We are committed to support effective multilateralism, based on a stronger and more efficient United Nations. We will work to strengthen the United Nations so that it can better fulfil the goals and objectives set forth in its mandate with transparency and accountability.  We will work together to ensure that the multilateral system takes action to protect the freedoms of individuals, and will hold all regimes that fail to protect the human rights of their people accountable. We will support in the UN more effective peacekeeping, disarmament, and delivery of development assistance, and   food  assistance.

We recognise the need for further cooperation to tackle international terrorism, particularly through an active role for the U.S., the EU and Member States in multilateral counter terrorism efforts at the UN.  We stand ready to work for an effective implementation of the UN Global Counter-Terrorism Strategy. We will continue to work together to reach international consensus towards an agreement on a Comprehensive Convention on International Terrorism that enhances global efforts to combat terrorism and strengthens the existing international legal framework for counter-terrorism. We call for full implementation of UNSC counter-terrorism Resolutions 1267, 1373 and 1540 and support the work of the respective UNSC Committees. We will redouble our efforts to ensure that the UNSCR 1267 Consolidated List accurately reflects facts on the ground, including through proposals of new listings. We agreed to expand our cooperation on counter- terrorism finance including preventing misuses of charities and bulk cash smuggling to finance terrorism, and increase information sharing.

We will seek to deepen our ties in our common fight against terrorism. We will ensure that efforts to combat terrorism comply with our obligations under international law, in particular international human rights law, refugee law and humanitarian law. We will take steps to ensure that members of designated terrorist groups do not misuse the law. We agree that the fight against international terrorism raises important legal questions. We have continued and deepened our dialogue on international law principles, relevant to our common fight against terrorism. Our dialogue contributes to a better mutual understanding of our respective legal frameworks and helps us work together more effectively.

We look forward to the imminent ratification and entry into force of the EU-U.S. Extradition and Mutual Legal Assistance Agreements, which are important tools for enhancing fully judicial co-operation and for better tackling organised crime and terrorist offences.

We will work together to combat the global threats posed by transnational organised crime, grand scale corruption, and terrorism. We recognise that transnational criminal syndicates, high level corruption, and terrorist networks destabilise societies by undermining the rule of law and impeding efforts to promote freedom and democracy. We look forward to strengthening international cooperation and working jointly to provide capacity to combat these global threats.  We also call for full implementation of the UN Convention Against Corruption, the UN Convention Against Transnational Organised Crime and its complementary protocols, as well as other UN instruments and resolutions to fight organised crime, corruption, and terrorism.

We recognise that the fight against transnational crime and terrorism requires the ability to share personal data for law enforcement purposes while fully protecting the fundamental rights and civil liberties of our citizens, in particular their privacy and personal data protection, by maintaining necessary standards of personal data protection. Our ongoing discussions within the High Level Contact Group (HLCG) on EU and U.S. frameworks for the protection of personal data have allowed us to identify a number of significant commonalities in our approaches based upon our shared values.  The best way to ensure these interests are met is through a binding international agreement that addresses all the issues identified in the HLCG report. Our challenge moving forward will be to translate insights into greater collaboration in all aspects of law enforcement cooperation.

We will continue to work together to strengthen and universalise relevant disarmament and non-proliferation treaties and regimes. We agree to continue and further develop our cooperation in promoting strict implementation of and compliance with relevant treaties, agreements and commitments on non-proliferation.  We will cooperate as appropriate in programmes aiming at raising awareness and at improving national capacity to prevent and counter the weapons of mass destruction (WMD) threat, including by combating the financing of proliferation and the threat of nuclear terrorism.  We will continue our joint efforts to better coordinate multilateral capacity building and third country assistance on non-proliferation, in particular drawing on our joint support for United Nations Security Council Resolution 1540 and the decision by the Security Council to extend the important work of this universal effort through UNSCRs 1673 (2006) and 1810 (2008). We call for geographical expansion of the G8 Global Partnership against the Spread of Weapons and Materials of Mass Destruction.  We will address together the challenges posed by non-compliance with regimes restricting the use or proliferation of WMD, and continue our productive dialogue on verification and compliance, established at the 2005 Summit, with a view to identifying opportunities for joint initiatives.  We will continue to develop our cooperation in combating nuclear terrorism, in particular through the Global Initiative to Combat Nuclear Terrorism in which all EU Member States are partners. 

We recognise the need for further cooperation on preventing and fighting international piracy, especially in the framework of the UN.

The security challenges we face call for enhanced cooperation on crisis management. We recognise that modern crisis management requires a comprehensive approach. We can improve our response to crises through close collaboration on all aspects of crisis management, consistent with and building upon cooperation with the UN, other nations, NATO, and other multilateral organisations as appropriate, with a particular view to enhancing transatlantic cooperation in civilian aspects of crisis management and conflict prevention through our agreed Work Plan. We recognise the contribution that a strong EU role in crisis management can bring to the world and support closer EU-NATO relations to better address a wide range of issues of common interest relating to crisis management.

We will support and work together actively in a spirit of mutual respect and cooperation to advance international criminal justice and accountability for war crimes, genocide and crimes against humanity.

Recognising the serious threat presented by cocaine production and trafficking, we endorse intensified cooperation on intelligence sharing and interdiction in this field, and we commit in particular to facilitate an exchange of information and a coordination of assistance efforts to address drug trafficking from Latin America, especially to West Africa.

Transatlantic Partnership

The transatlantic economy represents the most significant bilateral economic relationship in the world and has in recent years continued to grow even stronger. The Framework for Advancing Transatlantic Economic Integration which we signed at the April 2007 Summit has succeeded in achieving closer transatlantic economic integration and growth by promoting regulatory cooperation, capital markets integration, investment, and innovation, and by promoting the protection of intellectual property rights and facilitating secure trade.  We welcome the work of the Transatlantic Economic Council (TEC) which we are determined to make an effective forum for advancing concrete solutions to obstacles in EU/U.S. trade and investment relations. To fulfill the TEC's mandate of creating a barrier-free transatlantic market, it is essential that both sides follow through on their commitments as outlined in the Progress Report to the Summit.

Collaboration between our regulators is critical to further integrating our economies and supports our shared interest in advancing global prosperity. We expect that improvements to our respective regulatory processes will benefit stakeholders and help diminish unnecessary regulatory divergences. In this respect, we will continue our efforts via the High Level Regulatory Cooperation Forum and the European Commission - U.S. Office of Management and Budget dialogue to address methodological issues regarding regulatory impact assessment and risk analysis.

We also share a commitment to an open global investment environment because open investment policies are fundamental to transatlantic and global economic growth and prosperity. We welcome the TEC’s endorsement of the importance of open investment, and will resist protectionist sentiment at home and oppose protectionism abroad. We are committed to continuing to strengthen the EU-U.S. Investment Dialogue, which should continue to facilitate transatlantic investment and to develop common approaches to global investment issues.

We will advance our shared objective of effective protection and enforcement of intellectual property rights.  Toward this end we will work together with other trading partners to seek to conclude a strong Anti-Counterfeiting Trade Agreement (ACTA) by the end of the year.

The first-stage EU-U.S. Air Transport Agreement, which was provisionally applied as of 30 March, inaugurates a new era in transatlantic aviation. We welcome the start on 15 May in Slovenia of the second stage of negotiations aimed at further liberalisation of the transatlantic aviation market.

We look forward to a new EU-US Aviation Safety Agreement, which will establish a deeper safety-regulatory partnership across the Atlantic and further improve safety in and between our air transport systems. We call on both sides to accelerate their work to allow for the signature of the agreement by the end of June.

We adhere to the fundamental goal of free and secure movement of goods across the Atlantic through multi-layered and risk based security measures. We welcome the recent adoption of a roadmap towards mutual recognition of our respective trade partnership programmes in 2009 and the recent exchanges of customs officers.

We reaffirm our commitment to strengthen the capacities of the EU and U.S. economies for innovation by working to promote the importance and potential benefits of greater transatlantic cooperation on innovation activities.

We acknowledge that all EU and U.S. citizens should benefit from secure visa-free travel between our two continents. Since our last Summit, we have made significant efforts to this end.  We will work together to enhance the security of visa-free travel and the U.S. remains committed to expand its Visa Waiver Programme (VWP) to all EU Member States as soon as possible, including bringing additional EU Member States into the VWP this year. 

Global challenges

Free and fair trade and open investment regimes are the cornerstones of global economic growth. We remain committed to achieving a prompt, ambitious and balanced outcome in the WTO Doha Development Agenda that creates new market access and economic opportunities, that promote development and alleviate poverty. We call on all WTO members to make meaningful contributions that are necessary to advance the negotiations, achieve a breakthrough on modalities in the next few weeks,  and conclude an agreement as a matter of urgency.

We acknowledge the current difficult conditions in the international financial system. We will take appropriate individual and collective steps to address systemic risks and restore investor confidence. Through multilateral fora and bilateral cooperation, we will work collectively to underpin stability in the international financial system. This includes strengthening prudential oversight, improving risk and liquidity management, enhancing transparency, and fostering international cooperation between supervisors and central banks.

In the sphere of development cooperation, we reaffirm our commitment to contribute decisively to the Millennium Development Goals of the Millennium Declaration agreed to at the 2000 Summit and other development targets we have agreed to in other international fora. We will reinvigorate our efforts to meet these goals and in particular to respect our commitment on increased aid for Africa taken at Gleneagles in 2005, more than doubling official development assistance to Africa by 2010 compared to 2004. We will also renew our efforts to improve the quality and effectiveness of assistance in accordance with the Paris Declaration on Aid Effectiveness. We are committed to a successful outcome at the 3rd High Level Forum on Aid Effectiveness, to be held in Accra next September.

Building on the extensive work of the EU and the U.S. on African development, including President Bush’s recent trip to Africa, the recently adopted EU-Africa Strategy and Action Plan, and G8 efforts, we pledge our commitment to help realise Africa’s development potential; combat infectious diseases such as HIV/AIDS and malaria; foster human rights, democracy, and good governance; and cultivate investment, entrepreneurship, and economic growth.

We share a strong interest in supporting global health. We will continue to support partner countries as they work to achieve the health-related goals of the Millennium Declaration. We are accountable for progress in delivering on our promises to combat HIV/AIDS, malaria, TB, polio and other diseases. We will join together to combat neglected tropical diseases. We will work together to support efforts in partner countries to strengthen their health systems and in particular to improve availability of appropriately trained health workers. We will work, under the auspices of the World Health Organization, on a non-binding voluntary "Code of Practice" for health worker recruitment that supports health systems without creating policies that encourage discrimination in the recruitment and hiring of health workers based on national origin. We will also work to mobilise additional support from our private sectors for these efforts.

Recognising that education is the foundation of a successful society and a growing economy, we will work in partnership with developing countries to improve access to and quality of education. We will promote a holistic approach, balancing support to the different levels and types of education and coherent with the country context. We are committed to addressing the global shortfall of effective teachers through support for teacher training, recruitment, retention and capacity development.

We are conscious of the need for all countries, including major economies, to take responsibility for addressing the interconnected challenges of climate change, energy security and efficiency.

We are committed in the context of the UN Framework Convention on Climate Change (UNFCCC) to securing agreement by the end of 2009 to enable the full, effective and sustained implementation of the Convention through long-term cooperative action, now, up to and beyond 2012. The EU and the U.S. will pursue the search for global agreement on tackling climate change through the Major Economies Meetings and the G8, feeding into the international negotiations under the auspices of the UNFCCC, in accordance with our respective policies.

We will also continue our co-operation on climate change policies and other environmental issues through the EU-U.S. High-Level Dialogue on Climate Change, Clean Energy and Sustainable Development, focussing on issues such as promoting market-based domestic policies to reduce greenhouse gas emissions, facilitating trade and investment in new clean technologies, reducing air pollution and waste, combating illegal logging, and stemming the loss of biodiversity.

We will continue to co-operate on energy through our annual Strategic Energy Review, including implementing our joint action plan on biofuels, supporting the newly-launched International Partnership on Energy Efficiency Cooperation, and strengthening the International Energy Agency. We will continue to intensify our science and technology cooperation on energy and climate change in agreed priority areas, such as sustainable production and use of biofuels, clean and renewable energy sources, carbon capture and storage, hydrogen fuel cells, climate change impacts, and options for improving access to transatlantic research funding opportunities.

On energy security, we underline the importance of increasing competition in energy markets and promoting market-based solutions to diversify the development and transit of energy resources to the global market, including full implementation of the G8 St. Petersburg principles. We will work together with Ukraine to increase the transparency and efficiency of its energy markets and support international efforts to rehabilitate and modernise its transit networks. We will facilitate regional co-operation on energy with the countries of the Black Sea, the Caspian Basin and Central Asia and Iraq, and encourage the development of multiple pipelines, such as the Nabucco and Turkey-Greece-Italy projects, to supply additional natural gas to Europe from diversified sources.