Kevin’s Blog: home from Europe

June 22, 2009 by KT  
Filed under Kevin's Blog

Back in America. Just had a wonderful dinner with my friend Joe Vitale and a few other mutual friends. Joe is a star from the movie and book “The Secret”. He’s an amazing guy and one of the “insiders” in the Global Information Network. Associating with people who think the right way, possessing secret knowledge, and having the results to prove it works rubs off. Joe is genuine, a giver, fun, and can help you achieve your dreams. Would you like to meet him? Join the Global Information Network and be able to meet Joe and winners like him!  To sign up, you MUST type in this affiliate code: ‘KTRN’.

Kevin Trudeau

 

 

Dissecting the Kennedy Health Bill

June 22, 2009 by mike  
Filed under Government, Health

June 19, 2009

Wall Street Journal

by Betsy McCaughey

Last September Sen. Barack Obama promised that under his health-care proposal “you’ll be able to get the same kind of coverage that members of Congress give themselves.” On Monday, President Obama repeated that promise in a speech to the American Medical Association. It’s not true.

The president is barnstorming the nation, urging swift approval of legislation that is taking shape in Congress. This legislation — the Affordable Health Choices Act that’s being drafted by Sen. Edward Kennedy’s staff and the Health, Education, Labor and Pensions Committee — will push Americans into stingy insurance plans with tight, HMO-style controls. It specifically exempts members of Congress (along with federal employees; the exemptions are in section 3116).

Members of Congress “enjoy the widest selection of health plans in the country,” according to the U.S. Office of Personnel Management. They “can choose from among consumer-driven and high deductible plans that offer catastrophic risk protection with higher deductibles, health saving/reimbursable accounts and lower premiums, or fee-for-service (FFS) plans, and their preferred provider organizations (PPO), or health maintenance organizations (HMO).” These choices would be nice for all of us, but they’re not in the offing. Instead, if you don’t enroll in a “qualified” health plan and submit proof of enrollment to the federal government, you’ll be tracked down and fined (sections 3101 and 6055).

For a health plan to count as “qualified,” it has to meet all the restrictions listed in the legislation and whatever criteria the Secretary of Health and Human Services imposes after the bill becomes law. You may think you’re in a “qualified” plan, but the language suggests that only plans with managed-care controls such as the “medical home” will meet the definition (sections 3101 and 2707).

“Medical home” is this decade’s version of HMO-style insurance, according to the Congressional Budget Office, with a primary-care provider to manage your access to costly services such as visits to specialists and diagnostic tests. Medical home providers in “qualified” plans, states the Kennedy bill, will have a “payment structure” based on “incentives” rather than payments for each doctor visit or procedure (section 3101).

These requirements are reminiscent of the unpopular controls HMOs imposed two decades ago that caused public outrage and led to state laws reining in abuses. In December 2008, a Congressional Budget Office report evaluating early drafts of major federal health insurance proposals noted that “medical homes” were likely to resemble the HMO gatekeepers of 20 years ago if cost control is a priority.

That report specifically referred to a payment incentive called the “withhold.” When HMOs became dominant in the early 1990s, they would withhold 10% or more of physicians’ fees until the end of the year and give it back only to the physicians who met targets for limiting how many referrals to specialists or diagnostic tests their patients used.

The targets were so stringent that, if they were exceeded, what a doctor prescribed for you came out of your doctor’s own pocket at the end of the year. This set up a conflict of interest between you and your doctor.

Mr. Obama tried to put a positive spin on such cost controls in his June 13 weekly radio address. He said “if doctors have incentives to provide the best care, instead of more care, we can help Americans avoid unnecessary hospital stays, treatments and tests that drive up costs.” Fair enough — if you want your doctor paid to police your care and to be financially penalized for that extra test or referral you get.

It is reasonable to require that people who accept a government subsidy for health insurance tolerate cost controls to protect taxpayers. But according to the terms of the Kennedy bill, you must enroll in a “qualified” plan or face a fine, even if you and your employer are paying the entire cost of the plan you already have (section 161).

The president has promised that if you like your plan you can keep it. Mr. Kennedy’s bill says that too. It’s doubletalk, as the consequences of non enrollment make clear. How big a fine will you face? The bill doesn’t specify or set a limit. It says the fine will be enough to “accomplish the goal of enhancing participation in qualifying coverage” (section 161).

If legislation similar to the Kennedy bill lands on Mr. Obama’s desk, he has an obligation to keep his promises to the American people and veto it. And whatever health-insurance law is passed should apply to members of Congress. If it isn’t good enough for them, it shouldn’t be imposed on the rest of us.

Click here to read the full Wall Street Journal Editorial.

FTC Plans to Monitor Blogs for Claims, Payments

June 22, 2009 by mike  
Filed under Government

June 21, 2009

Associated Press

by Deborah Yao

Savvy consumers often go online for independent consumer reviews of products and services, scouring through comments from everyday Joes and Janes to help them find a gem or shun a lemon.

What some fail to realize, though, is that such reviews can be tainted: Many bloggers have accepted perks such as free laptops, trips to Europe, $500 gift cards or even thousands of dollars for a 200-word post. Bloggers vary in how they disclose such freebies, if they do so at all.

The practice has grown to the degree that the Federal Trade Commission is paying attention. New guidelines, expected to be approved late this summer with possible modifications, would clarify that the agency can go after bloggers — as well as the companies that compensate them — for any false claims or failure to disclose conflicts of interest.

It would be the first time the FTC tries to patrol systematically what bloggers say and do online. The common practice of posting a graphical ad or a link to an online retailer — and getting commissions for any sales from it — would be enough to trigger oversight.

“If you walk into a department store, you know the (sales) clerk is a clerk,” said Rich Cleland, assistant director in the FTC’s division of advertising practices. “Online, if you think that somebody is providing you with independent advice and … they have an economic motive for what they’re saying, that’s information a consumer should know.”

The guidelines also would bring uniformity to a community that has shunned that.

As blogging rises in importance and sophistication, it has taken on characteristics of community journalism — but without consensus on the types of ethical practices typically found in traditional media.

Journalists who work for newspapers and broadcasters are held accountable by their employers, and they generally cannot receive payments from marketers and must return free products after they finish reviewing them.

The blogosphere is quite different.

“Rules are set by the individuals who create the blog,” said Lee Rainie, director of the Pew Internet and American Life Project. “Some people will accept payments and free gifts, and some people won’t. There’s no established norm yet.”

Bloggers complain that with FTC oversight, they’d be too worried about innocent posts getting them in trouble, and they say they might simply quit or post less frequently.

Between ads on her five blogs and payments from advertisers who want her to review products, Rebecca Empey makes as much as $800 a month, paying the grocery bill for a family of six. She also has received a bird feeder, toys, books and other free goods.

Now the 41-year-old mother of four in New Hartford, N.Y., worries that even a casual mention of an all-natural cold remedy she bought herself would trigger an FTC probe.

“This helped us. This made us feel great. Will I be sued because I didn’t hire a scientist to do research?” Empey said.

Empey, whose blogs include New York Traveler and Freaky Frugalite, said she discloses compensation arrangements on a page on her blogs or through a “support my sponsor” logo. She said most of her readers understand that she sometimes gets compensated.

By contrast, a mommy blogger on Double Bugs praised Skinny Cow low-fat ice cream sandwiches and thanked a Web site called Mom Central for the chance to try them. But there’s no clue that Nestle SA’s Skinny Cow division was giving bloggers coupons for free products.

Some bloggers believe more uniform disclosure and practices would help instill trust and make advertisers more comfortable working with bloggers. To them, the question becomes whether the FTC should be the one crafting standards.

“It would always be better for bloggers to self-police,” said Robert Cox, president of Media Bloggers Association in New Rochelle, N.Y. “We have laws on the books. They apply to everybody, not just people who write blogs.”

Yuli Ziv, who writes a fashion blog from New York, is working on one such effort at self-regulation, helping craft an ethics policy for about 15 Web sites as part of the Style Coalition started in January to help bloggers become more professional.

“It’s been an issue, regardless of the FTC,” she said. “It’s about trust.”

Existing FTC rules already ban deceptive and unfair business practices. The proposed guidelines aim to clarify the law and for the first time specifically include bloggers, defined loosely as anyone writing a personal journal online.

“It’s sort of a recognition that word-of-mouth marketing in whatever form, whether electronic or not, is a significant part of the marketing strategy of modern companies,” Cleland said. “Because it’s new, I think it is imperative that we provide some kind of guidance.”

If the guidelines are approved, bloggers would have to back up claims and disclose if they’re being compensated — the FTC doesn’t currently plan to specify how. The FTC could order violators to stop and pay restitution to customers, and it could ask the Justice Department to sue for civil penalties.

Any type of blog could be scrutinized, not just ones that specialize in reviews.

So parents keeping blogs to update family members on their child’s first steps technically would fall under the FTC guidelines, though they likely would have little to worry about unless they accept payments or free products and write about them.

But they would need to think twice if, for instance, they praise parenting books they’ve just read and include links to buy them at a retailer like Amazon.com Inc.

That’s because the guidelines also would cover the broader and common practice of affiliate marketing, in which bloggers and other sites get a commission when someone clicks on a link that leads to a purchase at a retailer. In such cases, merchants also would be responsible for actions by their sales agents — including a network of bloggers.

Amazon declined to comment.

Cleland said the FTC would likely focus on repeated offenses that continue after a warning to stop.

Still, the agency has a big job ahead as new communications channels continually emerge. Advertisers now are paying some Twitter users to post short items through the increasingly popular messaging service. The FTC says the guidelines would cover such arrangements, regardless of the medium.

Even before the FTC commissioners vote on the final guidelines this summer, some in the blogging world have taken pre-emptive measures.

In May, IZEA, an Orlando, Fla.-based firm that matches advertisers with 265,000 bloggers, began sending reports to advertisers on whether hired bloggers are disclosing compensation arrangements, as IZEA requires. Such bloggers are paid as much as $3,000 for a 200-word post.

Over the holidays, IZEA ran a campaign in which bloggers who don’t normally shop at Sears Holdings Corp.’s Kmart stores were given $500 gift cards and encouraged to write about their experiences in the stores. To reduce the chance of a bad review, the retailer said it avoided bloggers who previously made negative remarks about the company.

Meanwhile, a blogger on TravelingMom was whisked away on a free Disney cruise in January. She stayed in an ocean-view stateroom, where she was greeted by Champagne on ice and a plate of cheese and fruit. Later in the trip, she and other bloggers basked in the sun on Castaway Cay, Disney’s private island.

“I’ve been on cruises before, but never like this one. The Disney Wonder (cruise ship) is … well … wondrous,” she gushed on her blog.

She did disclose the free trip.

Mandatory disclosures could change how reviews are perceived online because many Internet users might never imagine that bloggers get compensation.

“I don’t think, for the average reader of a blog, it immediately comes to mind that they actually have a relationship with the company,” said Sam Bayard, a fellow at Harvard’s Berkman Center for Internet & Society. “You think about (blogs) as personal, informal, off the cuff and coming from the heart — unfiltered, uncensored and unplanned.”

Click here to view the full story and FTC guidelines.

Minn. Lawmaker Vows Not to Complete Census

June 22, 2009 by mike  
Filed under Government

June 17, 2009

Washington Times

by Stephen Dinan

Outspoken Republican Rep. Michele Bachmann says she’s so worried that information from next year’s national census will be abused that she will refuse to fill out anything more than the number of people in her household.

In an interview Wednesday morning with The Washington Times “America’s Morning News,” Mrs. Bachmann, Minnesota Republican, said the questions have become “very intricate, very personal” and she also fears ACORN, the community organizing group that came under fire for its voter registration efforts last year, will be part of the Census Bureau’s door-to-door information collection efforts.

“I know for my family the only question we will be answering is how many people are in our home,” she said. “We won’t be answering any information beyond that, because the Constitution doesn’t require any information beyond that.”

Shelly Lowe, a spokeswoman for the U.S. Census Bureau, said Mrs. Bachmann is “misreading” the law.

She sent a portion of the U.S. legal code that says anyone over 18 years of age who refuses to answer “any of the questions” on the census can be fined up to $5,000.

The Constitution requires a census be taken every 10 years. Questions range from number of persons in the household and racial information to employment status and whether anyone receives social services such as food stamps.

Mrs. Bachmann said she’s worried about the involvement of ACORN, the Association of Community Organizers for Reform Now, in next year’s census.

“They will be in charge of going door to door and collecting data from the American public,” she said. “This is very concerning.”

ACORN has applied to help recruit workers to help conduct the census. Republican lawmakers and some public interest groups have expressed concern over their involvement.

ACORN staffers have been indicted in several states on charges of voter registration fraud stemming from the organization’s efforts to register voters last year.

Mrs. Bachmann, who is in her second term in the House, has become a lightning rod for criticism from Democrats and liberal talk show hosts for her unapologetic conservative views.

She said she considers that “a badge of honor.”

“It’s clear when a person speaks out against those policies they become a target, and that should be concerning to everyone,” she said.

CLICK HERE FOR THE FULL WASHINGTON TIMES STORY

FDA Threatens to Seize All Natural Products that Mention H1N1 Swine Flu

June 21, 2009 by mike  
Filed under Health

June 20, 2009

Natural News

In an effort to censor any online text that might inform consumers of the ability of natural products to protect consumers from H1N1 influenza A, the FDA is now sending out a round of warning letters, threatening to “take enforcement action… such as seizure or injunction for violations of the FFDC Act without further notice.”

“Firms that fail to take correction action,” the FDA warns, “may also be referred to the FDA’s Office of Criminal Investigations for possible criminal prosecution for violations of the FFDC Act and other federal laws.”

The message is crystal clear: No product may be described as protecting against or preventing H1N1 infections unless it is approved by the FDA. And which products has the FDA approved? Tamiflu (the anti-viral drug that most people will never have access to), and soon the new H1N1 vaccine that’s being manufactured at a cost of one billion dollars (paid to Big Pharma by the taxpayers). This vaccine, of course, will be utterly useless because H1N1 will undoubtedly mutate between now and the time the vaccine is ready, rendering the vaccine useless.

In other words, according to the tyrants at the FDA, the only products that may be marketed alongside the term “H1N1″ are those products that either don’t work or aren’t available to most people. Anything that really works to prevent influenza infections — such as natural anti-virals, medicinal herbs, etc. — is banned from even mentioning H1N1 without the threat of being criminally prosecuted.

Such are the operations of our U.S. Food and Drug Administration — a criminal organization that’s working hard to do what every criminal organization does: Eliminate the competition! As the defender of Big Pharma, the FDA is also the destroyer of knowledge that seeks to remove educational statements from the internet. Truth has nothing to do with it — it is verifiably true that anti-viral herbs, probiotics and other natural products help protect consumers from influenza — but the FDA cannot allow such statements to remain online for the simple fact that people might become informed. And that, it seems, would be a dangerous precedent.

If people were informed about the healing and protective powers of herbs, they would no longer remain enslaved by the medical establishment. Profits would be lost. Power would evaporate. This is why people can never be allowed to attain any real knowledge about herbs, superfoods or nutritional supplements. And the FDA will threaten people with imprisonment just to make sure they don’t dare publish knowledge that the FDA does not want the people to see.

CLICK HERE FOR THE STORY FROM NATURALNEWS.COM

Goldman Sachs to Make Record Bonus Payouts

June 21, 2009 by mike  
Filed under Wealth

June 21, 2009

The London Guardian

by Phillip Inman

Staff at Goldman Sachs can look forward to the biggest bonus payouts in the firm’s 140-year history after a spectacular first half of the year, sparking concern that the big investment banks which survived the credit crunch will derail financial regulation reforms.

A lack of competition and a surge in revenues from trading foreign currency, bonds and fixed-income products has sent profits at Goldman Sachs soaring, according to insiders at the firm.

Staff in London were briefed last week on the banking and securities company’s prospects and told they could look forward to bumper bonuses if, as predicted, it completed its most profitable year ever. Figures next month detailing the firm’s second-quarter earnings are expected to show a further jump in profits. Warren Buffett, who bought $5bn of the company’s shares in January, has already made a $1bn gain on his investment.

Goldman is expected to be the biggest winner in the race for revenues that, in 2006, reached £186bn across the entire industry. While this figure is expected to fall to £160bn in 2009, it will be split among a smaller number of firms.

Barclays Capital, Credit Suisse and Deutsche Bank are among the European firms expected to register bumper profits, along with US banks JP Morgan and Morgan Stanley following the near collapse and government rescue of major trading houses including Citigroup, Merrill Lynch, UBS and Royal Bank of Scotland.

In April, Goldman said it would set aside half of its £1.2bn first-quarter profit to reward staff, much of it in bonuses. It is believed to have paid 973 bankers $1m or more last year, while this year’s payouts are on track to be the highest for most of the bank’s 28,000 staff, including about 5,400 in London.

Critics of the bonus culture in the City said the dominance of a few risk-taking investment banks is undermining the efforts of regulators to stabilise the financial system.

Vince Cable, the Liberal Democrat treasury spokesman, said: “The investment banks more than any other institutions created the culture of excessive leverage, excessive risk and excessive bonuses that led to the downfall of the financial system. Now they are cashing in and the same bonus culture has returned. The result must be that we are being pushed to the edge of another crash.”

Goldman Sachs said it reviewed its bonus scheme last year and switched from a system of guaranteed rewards that were paid over three years to variable payments that tied staff to the firm. It told employees last year that profit-related bonuses would be delayed by 12 months.

Until the release of its first quarter profits in April, it seemed inconceivable that a firm owing the US government $10bn would be looking to break all-time records in 2009.

David Williams, an investment banking analyst at Fox Pitt Kelton, said: “This year is shaping up to be the best year ever for investment banks, or at least those that have emerged relatively unscathed from the credit crisis.

“These banks are intermediaries in the bond markets where governments and companies are raising billions of pounds of new money. There is also a lack of competition that means they can charge huge sums for doing business.”

Last week, the firm predicted that President Barack Obama’s government could issue $3.25tn of debt before September, almost four times last year’s sum. Goldman, a prime broker of US government bonds, is expected to make hundreds of millions of dollars in profits from selling and dealing in the bonds.

CLICK HERE TO ACCESS THE STORY IN THE GUARDIAN

Plan to Teach Military Robots the Rules of War

June 20, 2009 by mike  
Filed under NWO

June 18, 2009

New Scientist

by Tom Simonite

Technology has always distanced the soldiers who use weapons from the people who get hit. But robotics engineer Ron Arkin at the Georgia Institute of Technology, Atlanta, is working to imagine wars in which weapons make their own decisions about wielding lethal force.

He is particularly interested in how such machines might be programmed to act ethically, obeying the rules of engagement.

Arkin has developed an “ethical governor”, which aims to ensure that robot attack aircraft behave ethically in combat, and is demonstrating the system in simulations based on recent campaigns by US troops, using real maps from the Middle East.

Virtual battlefield

In one scenario, modelled on a situation encountered by US forces in Afganistan in 2006, the drone identifies a group of Taliban soldiers inside a defined “kill zone”. But the drone doesn’t fire. Its maps indicate that the group is inside a cemetery, so opening fire would breach international law.

In another scenario, the drone identifies an enemy vehicle convoy close to a hospital. Here the ethical governor only allows fire that will damage the vehicles without harming the hospital. Arkin has also built in a “guilt” system which, if a serious error is made, forces a drone to start behaving more cautiously. You can see videos of these simulations on Arkin’s website.

In developing the software, he drew on studies of military ethics, as well as discussions with military personnel, and says his aim is to reduce non-combatant casualties. One Vietnam veteran told him of soldiers shooting at anything that moved in some situations. “I can easily make a robot do that today, but instead we should be thinking about how to make them perform better than that,” Arkin says.

Complex scenarios

Simulations are a powerful way to imagine one possible version of the future of combat, says Illah Nourbakhsh, a roboticist at Carnegie Mellon University, Pittsburgh, US. But they gloss over the complexities of getting robots to understand the world well enough to make such judgements, he says; something unlikely to be possible for decades.

Arkin stresses that his research, funded by the US army, is not designed to develop prototypes for future battlefield use. “The most important outcome of my research is not the architecture, but the discussion that it stimulates.”

However, he maintains that the development of machines that decide how to use lethal force is inevitable, making it important that when such robots do arrive they can be trusted. “These ideas will not be used tomorrow, but in the war after next, and in very constrained situations.”

Public debate

Roboticist Noel Sharkey at Sheffield University, UK, campaigns for greater public discussion about the use of automating in war. “I agree with Ron that autonomous robot fighting machine look like an inevitability in the near future,” he told New Scientist.

Arkin’s work shows the inadequacy of our existing technology at dealing with the complex moral environment of a battlefield, says Sharkey. “Robots don’t get angry or seek revenge but they don’t have sympathy or empathy either,” he says. “Strict rules require an absolutist view of ethics, rather than a human understanding of different circumstances and their consequences.”

Yet in some circumstances, a strict rule-based approach is valuable. The Georgia Tech group has also made a system that advises a soldier of the ethical constraints on a mission as they program it into an autonomous drone. That kind of tool could see practical use much sooner, says Nourbakhsh: “Similar systems exist to help doctors understand the medical ethics of treatments.”

Arkin will discuss his latest results at the AUVSI Unmanned Systems conference in Washington, DC, in August.

CLICK HERE FOR THE ARTICLE IN NEW SCIENTIST

CDC sees “something different” with new flu

June 20, 2009 by mike  
Filed under Health

June 19, 2009

Reuters

by Maggie Fox

The new strain of H1N1 flu is causing “something different” to happen in the United States this year — perhaps an extended year-round flu season that disproportionately hits young people, health officials said on Thursday.

An unusually cool late spring may be helping keep the infection going in the U.S. Northeast, especially densely populated areas in New York and Massachusetts, the officials at the U.S. Centers for Disease Control and Prevention said.

And infections among healthcare workers suggest that people are showing up at work sick — meaning that workplace policies may be contributing to its spread, the CDC officials said.

The new strain of swine flu is officially a pandemic now, according to the World Health Organization.

So far the virus is causing mild to moderate disease, but it has killed at least 167 people and been confirmed in nearly 40,000 globally.

The United States has been hardest hit, with upward of 100,000 likely cases and probably far more, with 44 deaths and 1,600 hospitalized.

“The fact that we are seeing ongoing transmission now indicates that we are seeing something different,” the CDC’s Dr. Daniel Jernigan told a news briefing.

“And we believe that that may have to do with the complete lack of immunity to this particular virus among those that are most likely affected. And those are children,” Jernigan added.

“The areas of the country that are most affected, some of them have very high population densities, like Boston and New York. So that may be a contributor as well. Plus the temperature in that part of the country is cooler, and we know that influenza appears to like the cooler times of the year for making transmission for effective.”

Jernigan said in areas that are the most affected up to 7 percent of the population has influenza-like illness.

“The United States will likely continue to see influenza activity through the summer, and at this point we’re anticipating that we will see the novel H1N1 continue with activity probably all the way into our flu season in the fall and winter. The amount of activity we expect to be low, and then pick up later.”

One worrying pattern: healthcare workers are being infected, and most reported they did little or nothing to protect themselves, the CDC’s Dr. Mike Bell said.

People coming into emergency departments or clinics need to be checked right away for flu symptoms and anyone working with such a patient needs to wear a mask, gloves and eyewear, Bell said.

“We’re beginning to see a pattern of healthcare personnel-to-healthcare personnel transmission in some of the clusters, which is also concerning, because it gets to the issue of people showing up to work sick,” Bell said.

Doctors, nurses and technicians who have flu can spread it to vulnerable patients, Bell noted.

As of May 13, the CDC said it had received 48 reports of healthcare workers infected with swine flu.

Detailed case reports on 26 showed that 13 were infected in a healthcare setting such as a clinic or hospital and 12 caught it from infected patients, the CDC said in its weekly report on death and disease.

CLICK HERE FOR THE REUTERS ARTICLE

Suitcase With $134 Billion Puts Dollar on Edge

June 20, 2009 by mike  
Filed under Wealth

June 17, 2009

Bloomberg

commentary by William Pesek

It’s a plot better suited for a John Le Carre novel.

Two Japanese men are detained in Italy after allegedly attempting to take $134 billion worth of U.S. bonds over the border into Switzerland. Details are maddeningly sketchy, so naturally the global rumor mill is kicking into high gear.

Are these would-be smugglers agents of Kim Jong Il stashing North Korea’s cash in a Swiss vault? Bagmen for Nigerian Internet scammers? Was the money meant for terrorists looking to buy nuclear warheads? Is Japan dumping its dollars secretly? Are the bonds real or counterfeit?

The implications of the securities being legitimate would be bigger than investors may realize. At a minimum, it would suggest that the U.S. risks losing control over its monetary supply on a massive scale.

The trillions of dollars of debt the U.S. will issue in the next couple of years needs buyers. Attracting them will require making sure that existing ones aren’t losing faith in the U.S.’s ability to control the dollar.

The dollar is, for better or worse, the core of our world economy and it’s best to keep it stable. News that’s more fitting for international spy novels than the financial pages won’t help that effort. It is incumbent upon the U.S. Treasury to get to the bottom of this tale and keep markets informed.

Think about it: These two guys were carrying the gross domestic product of New Zealand or enough for three Beijing Olympics. If economies were for sale, the men could buy Slovakia and Croatia and have plenty left over for Mongolia or Cambodia. Yes, they could have built vacation homes amidst Genghis Khan’s Gobi Desert or the famed Temples of Angkor. Bernard Madoff who?

These men carrying bonds concealed in the bottom of their luggage also would be the fourth-largest U.S. creditors. It makes you wonder if some of the time Treasury Secretary Timothy Geithner spends keeping the Chinese and Japanese invested in dollars should be devoted to well-financed men crossing the Italian-Swiss border.

This tale has gotten little attention in markets, perhaps because of the absurdity of our times. The last year has been a decidedly disorienting one for capitalists who once knew up from down, red from black and risk from reward. It almost fits with the surreal nature of today that a couple of travelers have more U.S. debt than Brazil in a suitcase and, well, that’s life.

You can almost picture Tom Clancy sitting in his study thinking: “Damn! Why didn’t I think of this yarn and novelize it years ago?” He could have sprinkled in a Chinese angle, a pinch of Russian intrigue, a dose of Pyongyang and a bit of Taiwan-Strait tension into the mix. Presto, a sure bestseller.

Daniel Craig may be thinking this is a great story on which to base the next James Bond flick. Perhaps Don Johnson could buy the rights to this tale. In 2002, the “Miami Vice” star was stopped by German customs officers as he was traveling in a car carrying credit notes and other securities worth as much as $8 billion. Now he could claim it was all, uh, research.

When I first heard of the $134 billion story, I was tempted to glance at my calendar to make sure it didn’t read April 1.

Let’s assume for a moment that these U.S. bonds are real. That would make a mockery of Japanese Finance Minister Kaoru Yosano’s “absolutely unshakable” confidence in the credibility of the U.S. dollar. Yosano would have some explaining to do about Japan’s $686 billion of U.S. debt if more of these suitcase capers come to light.

Counterfeit $100 bills are one thing; two guys with undeclared bonds including 249 certificates worth $500 million and 10 “Kennedy bonds” of $1 billion each is quite another.

The bust could be a boon for Italy. If the securities are found to be genuine, the smugglers could be fined 40 percent of the total value for attempting to take them out of the country. Not a bad payday for a government grappling with a widening budget deficit and rebuilding the town of L’Aquila, which was destroyed by an earthquake in April.

It would be terrible news for the White House. Other than the U.S., China or Japan, no other nation could theoretically move those amounts. In the absence of clear explanations coming from the Treasury, conspiracy theories are filling the void.

On his blog, the Market Ticker, Karl Denninger wonders if the Treasury “has been surreptitiously issuing bonds to, say, Japan, as a means of financing deficits that someone didn’t want reported over the last, oh, say 10 or 20 years.” Adds Denninger: “Let’s hope we get those answers, and this isn’t one of those ‘funny things’ that just disappears into the night.”

This is still a story with far more questions than answers. It’s odd, though, that it’s not garnering more media attention. Interest is likely to grow. The last thing Geithner and Federal Reserve Chairman Ben Bernanke need right now is tens of billions more of U.S. bonds — or even high-quality fake ones — suddenly popping up around the globe.

CLICK HERE FOR THE BLOOMBERG ARTICLE

Spend The Weekend With Kevin!

June 19, 2009 by mike  
Filed under Events

Natural Cures Health Seminar, July 25-26, 2009, Chicago
Kevin Trudeau, a New York Times Best Selling Author and consumer advocate, will be speaking for two days at the Natural Cures Health Seminar, July 25-26, 2009, in Chicago. Please join us as Kevin talks about a number of topics including how to cure any disease and how to protect yourself from the Swine Flu, or any other flu. This is your chance to be in a small group setting and have your personal health questions answered directly by Kevin.

Ticket Information:

Lifetime Member RSVP:
If you are a Lifetime Member, please let us know if you plan to attend by emailing us using the private email address we gave you. Non-members can purchase tickets now for $2,000 each, or purchase a Lifetime Membership and get two free tickets (worth $4,000).

Venue: Hyatt Regency Hotel

1800 E. Golf Road
Schaumburg, IL 60173
Schedule: Saturday July 25, 2009: 9am-Noon, 2pm-5pm, 7pm-10pm
Sunday July 26, 2009: 9am-Noon, 1pm-4pm

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