Independence Day 2004

-> Jobs growth disappoints, Stocks fall -CNNfn
-> Gold Rises as Jobs Report Sends Dollar Lower - Bl
-> Bush/Kerry Economics Debate on CNBC -IFN
-> Fed Lifts Benchmark Rate a Quarter Point
-> Investor Optimism Surges as Inflation Fears Grow
-> Account Deficit Poses Serious Risks -Bloomberg
-> Inflation vexes public -- if not economists -KR

-> GOLD: THE MONETARY ANTI-DRUG - Craig R. Smith
-> CAN U.S. RETURN TO A GOLD STANDARD? -Greenspan
-> BORDERS, LANGUAGE, CULTURE... & GOLD -Savage
-> HARD MONEY: CLIMBING A CHINESE WALL OF WORRY
-> MARRIAGE UNDER FIRE -James Dobson, FOF
-> A NEW MATRIX MEANS CHANGING TRACKS -Bradshaw

"I have long believed that the guiding hand of Providence did not create this new nation of America for ourselves alone, but for a higher cause: the preservation and extension of the sacred fire of human liberty. The Declaration of Independence and the Constitution of these United States are covenants we have made not only with ourselves, but with all of mankind. Our founding documents proclaim to the world that freedom is not the sole prerogative of a chosen few, they are the universal right of all God's children."

-RONALD REAGAN (1991)
Request FREE Autographed photo of Ronald & Nancy Reagan

Editor's Note: The day after this Independence Day (providentially), July 5th, marks the end of the month of official mourning for Ronald Reagan's death -- with flags returning to full staff.

MARKET NEWS DIGEST

Jobs growth disappoints, Stocks fall -CNNfn
Economy created just 112,000 jobs in June, less than half of forecasts; unemployment flat at 5.6%.
July 2, 2004
By Chris Isidore, CNN/Money senior writer

NEW YORK (CNN/Money) - Job growth slowed dramatically in June, as employers added just 112,000 workers to payrolls last month, a number that came in well below forecasts by private economists.

The gain was about half of May's revised gain of 235,000 jobs, and was the weakest since February following three straight months of strong job growth, the Labor Department reported.

Economists surveyed by Briefing.com had forecast a gain of 250,000 jobs in the month. Those surveyed by Reuters had a range of estimates from 185,000 jobs forecast by Wells Fargo Bank to 310,000 forecast by Thompson Financial.

The unemployment rate was 5.6 percent, unchanged from the May reading of 5.6 percent and in line with economists' forecasts.

U.S. stocks fell Friday afternoon after weaker-than-expected job growth in June exacerbated concerns that the pace of expansion in the economy has slowed.

At around noon, the Dow Jones industrial average and the Nasdaq composite both lost around 0.4 percent to 0.5 percent.

The Standard & Poor's 500 index was just modestly lower. Their losses came on the heels of steep declines for the market Thursday.

The market is heading into a long weekend. Wall Street will be closed for business on Monday in celebration of Independence Day.

http://www.cnnfn.com
Unemployment state by state

Gold Rises as Jobs Report Sends Dollar Lower - Bloomberg

July 2 (Bloomberg) -- Gold futures in New York rose, reversing an earlier loss, as a slowdown in U.S. job growth in June sparked a decline in the dollar against the euro that reduced the metal's cost to buyers in Europe.

Employers added 112,000 workers, compared with an expected rise of 250,000 jobs based on the median forecast in a Bloomberg News survey, and down from 235,000 in May, the Labor Department said. Gold prices have climbed 14 percent in the past year as the dollar fell against the euro.

``It's good for gold because it lowers expectations to raise interest rates in the short term, because obviously something's not going right with the economy,'' said Patrick Chidley, an analyst at Barnard Jacobs Mellet USA in New York.

Gold for August delivery rose $3.60, or 0.9 percent, to $400 an ounce at 8:49 a.m. on the Comex division of the New York Mercantile Exchange, after earlier falling 1 percent. Prices are down almost 1 percent this week, after rising 1.9 percent last week and 2.4 percent the week before.

Trading in New York ends early at 12:10 p.m. instead of 1:30 p.m. The Comex is closed Monday for the Independence Day holiday.

http://www.bloomberg.com

Bush/Kerry Economics Debate on CNBC -IFN
The next four years: More of the same, or a whole new game?
June 30, 2004

PHOENIX, AZ (IFN)-- CNBC Morning Call today featured another lively debate between Dean Baker of CEPR and Craig Smith of SATC on the topic of which major presidential candidate has the best economic plan for the next four years. Here's a short summary.

CNBC: BUSH ECONOMICS/JOBS - Does the Bush Tax Cut plan offer proof to the voters that it's really working?

MR. BAKER : No, I think it's a very hard case to make because the economy normally adds an average of 2 million new jobs per year, and as high as 3 million in the late 1990s, so adding a million jobs when 2 million have been lost shows we are still down.

MR. SMITH: That may be true but keep in mind that unemployment is now the lowest since the 70s, 80s & 90s in percentages, so we are headed in the right direction. Remember, 911 impact alone accounted for a million jobs lost, so we are fighting our way back and statistics are now showing we are doing a good job.

CNBC: KERRY ECONOMICS - John Kerry has promised to create 10 million new jobs in 4 years by reducing the cost of doing business, is that feasible?

MR SMITH: No, even Dr. Baker has written that the numbers don't add up. Tax credits for jobs have been tried in the past and failed under the Carter administration, and even under Reagan, so I think if we revisit this stragegy it will fail again.

MR. BAKER: I think 10 million jobs in the next four years should be the norm, even Bush should stand up and promise the same. The percentage of people that have jobs is down two percentage points, which equates to a loss of 4 million jobs. The economy is really hurting right now. Will Kerry's plan work, we haven't seen it laid out very well, but it's clear that we have to take back some of the Bush tax cuts.

MR. SMITH: I don't agree with that, statistics can be misleading. Let's look at where we are at; we've had the greatest year of growth in two decades, we've had real wages move up 11%, after taxes, household incomes are close to an all time high, the Dow was up 25% last year. I just spoke with a head-hunter who tells me that business is booming in the more requests for high paying jobs.

CNBC: DEFICIT? - Do voters care about this monster issue?

MR. SMITH: I think it's a critical issue, but I think it can be addressed and we are going in the right direction to bring it down.

MR. BAKER: People care about the money in their pocket and real wages have been falling, something we haven't seen since the early 90s.

CNBC: CONSUMER CONFIDENCE DID JUST HIT A 2-YR HIGH ... WE'LL SEE...

MR. SMITH: Evidently, consumers are more confident than Mr. Baker is.

EVERYONE LAUGHS - "We always seem to get into this situation with you guys ... Thanks so much ...

READ: ELECTION 2004: The Great Economics Debate

Fed Lifts Benchmark Rate a Quarter Point -Reuters
Wed Jun 30, 2004

WASHINGTON (Reuters) - The Federal Reserve raised U.S. interest rates for the first time in four years on Wednesday, boosting them a quarter percentage point in the first of a likely series of increases to keep inflation at bay.

The decision by the U.S. central bank's policy-setting Federal Open Market Committee moves the benchmark federal funds rate -- which affects credit costs throughout the economy -- to 1.25 percent. [Read Fed Statement]

Wednesday's decision formally ends an easing cycle that began in 2001 and took the key rate to 1 percent, its lowest level since 1958.

With the economy gaining momentum, enough to generate 1.2 million jobs so far this year, the Fed is expected to move rates up gradually in several steps this year and into 2005.

In its post-meeting statement, the central bank repeated a pledge to follow a "measured" pace, which markets have taken to imply it will opt for a course of smaller, quarter-point rate increases rather than larger ones. However, it said it would respond to changing economic prospects as needed.

The question for borrowers, lenders and central bankers alike is how fast rates will rise.

To answer that question, analysts will sift through the wording of the FOMC statement, the speeches given by Fed officials over the next few weeks, and most importantly, the upcoming economic data on jobs, output and prices.

Ahead of the announcement, financial markets expected the fed funds rate to rise to 2.25 percent by the end of the year, a pace of one rate hike at each meeting. The next FOMC meeting comes on Aug. 10.

http://www.reuters.com

Account Deficit Poses Serious Risks -Bloomberg
By John M. Berry

June 25 (Bloomberg) -- The U.S. current account deficit, a record $144.9 billion in the first three months of this year, clearly is unsustainable, and whenever it begins to unwind, it will be a painful process.

The deficit is more than 5 percent of gross domestic product, double or more the level economists say could be maintained indefinitely. At the very least, trimming it to a more manageable size will take several years during which consumption will stagnate and high long-term interest rates may hurt housing and business investment.

And the adjustment process will impose new restraints on the policy choices open to Federal Reserve officials.

All those things happened in the late 1980s, the last time the U.S. was forced to make such an adjustment after years of living beyond its means.

Or it could be worse. Gerald Corrigan of Goldman Sachs Group Inc., a former president of the Federal Reserve Bank of New York, speaking at a Boston Federal Reserve Bank conference last week, warned that an abrupt reduction of the country's external deficit could pose ``systemic risks'' for world financial markets.

``If nothing happens in the next two or three years (to reduce the current account deficit), then the chances of a financial disruption rise in an alarming way,'' Corrigan said.

``What happens when international financial market liquidity dries up?'' Corrigan asked. It can generate crises such as those of 1987 and 1998, he said.

Corrigan's concern was echoed yesterday by former Treasury Secretary Robert Rubin in a speech at a Concord Coalition conference in Washington.

``The risk is that the large current account deficit and our large fiscal deficit so undermine confidence in our policy regime that the providers of capital no longer do so except at much higher interest rates,'' he said

Nobody can predict when that adjustment will begin because private foreign investors and central banks have so far been happy to finance the deficit, even though U.S. interest rates have been at their lowest levels in four decades.

Federal Reserve Chairman Alan Greenspan is optimistic that when the current account deficit begins to shrink -- probably when those foreign investors decide they have enough dollar- denominated assets in their portfolios -- the process will be smooth and orderly.

``We may not be able to usefully determine at what point foreign accumulation of net claims on the United States will slow or even reverse, but it is evident that the greater the degree of international (financial market) flexibility, the less the risk of crisis,'' Greenspan said in a speech last month.

There are several interrelated reasons why the current account deficit has widened, and reversing any of the factors at work will be difficult, particularly politically.

``There is no good outlook,'' said economist Catherine Mann of the Institute for International Economics.

At the most basic level, U.S. consumption and investment have exceeded the country's production levels for years. From another perspective, private and government savings have fallen short of what has been needed to finance the nation's investment.

The whopping U.S. trade deficit reflects the shortfall in production. The required inflow of foreign capital, which finances the trade deficit, reflects the shortage of savings.

http://www.bloomberg.com

Investor Optimism Surges as Inflation Fears Grow -GNS
So why do investors oppose using higher interest rates to battle inflation?
by Dennis Jacobe, GALLUP NEWS SERVICE
June 28, 2004

PRINCETON, NJ -- Six in 10 investors say inflation is a serious problem and 9 in 10 say the price of energy, including gas and oil, is hurting the investment climate, according to the June UBS/Gallup Index of Investor Optimism survey.

Even more significantly, nearly half of all U.S. investors are worried that inflation will hurt their investment portfolios.

So, why did June investor optimism reach its highest level in four months? And, why do nearly two in three investors oppose higher interest rates?

The answer may be that we need to put the current level of investor optimism in proper perspective. Even as the economic expansion has finally begun to create a significant number of new jobs, investor optimism has only returned to its February level and remains below where it was in December and January.

Market participants, business executives, and the Federal Open Market Committee -- as it meets Tuesday and Wednesday to consider increasing interest rates -- should keep this need for "perspective" in mind as they evaluate the economic outlook for the second half of this year. Even after its surge in June, investor/consumer optimism about the economy remains far below that of most economic forecasters.

Investor Optimism Surges

The Index of Investor Optimism increased 24 points in June and now stands at 95, essentially matching its February (97) and November (93) levels. While the Index is now significantly higher than it was a year ago (77), it remains below its December (104) and January (108) levels. The Index peaked at 178 in January 2000 and reached its low of 5 in March 2003.

The Personal Dimension increased 13 points in June, reaching 70 -- its highest level since January (72) and its second-highest level since March 2002. In June, investors became more optimistic about their ability to achieve their investment targets and investment goals, and to maintain or increase their income.

The Economic Dimension increased 11 points in June to 25 -- its highest level since February (30). Investors are now more optimistic about economic growth, unemployment, and the stock market. Still, investor optimism about the economic outlook remains well below where it was in December (41) and January (36).

http://www.gallup.com

Inflation vexes public -- if not economists -KR
KEN MORITSUGU, Knight Ridder

HYATTSVILLE, Md. - Max Grace, part-time college student and full-time movie projectionist, can't keep up with inflation.

To cover his rising bills, he spends more time showing movies than hitting the books. His education is delayed. And his grades suffer, said Grace, 24.

"I have to pay a lot more money for everything, from rent to gas to groceries," the University of Maryland student said, packing his groceries into the passenger side of his beat-up 1985 Nissan pickup.

Grace's experience seems at odds with government inflation numbers, which indicate that prices remain low by historical standards. Consumer prices are up 3.1 percent over the past year, which means an item that cost $1 a year ago now costs $1.03.

"Our general view is that inflationary pressures are not likely to be a serious concern in the period ahead," Federal Reserve Chairman Alan Greenspan told Congress earlier this month.

"He's obviously not talking about me," Grace said. "He's talking about people who have much more money -- at his level, where his words matter."

Grace is right. Greenspan speaks to financial market players, telegraphing Fed plans to raise interest rates slowly because inflation appears to be tame.

What matters to Greenspan, however, is different than what matters to consumers.

A snapshot of inflation shows why. In the last three months, the consumer price index rose at a 5.5 percent annualized rate. In May, prices soared at an 8 percent annual clip.

While that rocks consumers, Fed officials are more worried about whether prices will continue to rise that rapidly. And they don't think so. Energy prices are showing signs of easing. And wage increases, which can fuel inflation, remain subdued.

For Grace and other shoppers at a Giant supermarket in suburban Maryland, though, the higher prices hurt.

"It seems to be done a few cents each time so it won't be noticeable," said Rosa Morris, 65, watching her cart as her husband dashed into an afternoon thundershower to retrieve their silver PT Cruiser.

But, she added, "If you shop every day, you notice it. It's a big difference."

Consumers may sense that inflation is higher than statistics show because the prices of some common items have increased so fast.

The price of milk, for example, rose 14.5 percent last month, and already-high gasoline prices climbed another 8.1 percent. A gallon of whole milk sold for $3.39 at the Giant in Maryland and has topped $4 in some parts of the country.

FULL STORY

On July Fourth this year, we can do more than venerate the Declaration of Independence, we can learn from its embrace of coalition politics.

American leaders favoring the revolution almost 230 years ago were split into two theological camps. Most were theists, believing in a God who both created the world and was still active in it. But some scoffed at biblical claims. One of the latter, Thomas Jefferson, was charged with finding language that would satisfy theists as well as partisans within his own camp. He succeeded remarkably well in at least three instances.

Jefferson's first artful sentence declared that Americans were basing their case on the "laws of nature and of nature's God." Those critical of Christianity could sign onto a document that emphasized the course of human events without explicit reference to Jesus Christ; the expression "nature's God" even made it seem that nature had created God.

Christian legal scholars, though, long had argued that "the law of nature means ... the law of God." The standard law book in the 1770s, William Blackstone's "Commentaries," stated that "the will of (man's) maker is called the law of nature." Theists could embrace Jefferson's phrase.

Jefferson's second coup was his assertion that all people are "endowed, by their Creator, with certain unalienable rights," including the famous triad of "life, liberty, and the pursuit of happiness." Mention of "the Creator" was popular among theists but satisfactory to those who said God had created the world but quickly gone on vacation.

Each side also saw "liberty" in a different light. For libertarians, the political meaning was key, and it could be heightened by playing with theological language: "Liberty is salvation in politics," one said. For Christians, the word conveyed theological as well as political meaning: Connecticut minister Levi Hart declared man a slave to sin, with Christ "procuring, preaching and bestowing liberty to the captives."

Jefferson's third mellifluous phrase for a multitude of ears came at the end of the Declaration: "a firm reliance on the protection of divine Providence." For those with little use for the Bible, "providence" was the general motion of natural forces implanted in a world created by God but left to run on its own. Theists, though, had an understanding summarized well in the "Westminster Confession," which spoke of how God governed everything "by his most wise and holy providence."

Jefferson and Benjamin Franklin, both critical of Christian patriots such as Samuel Adams and Patrick Henry, could have tried to ground their argument in man's will rather than God's. Adams, Henry or John Witherspoon, a Presbyterian minister, could have insisted on explicit recognition of Christ in the document. Either attempt, however, would have provoked divisive debate at a time when unity in facing London's aggression was essential.

Today, the question Adams hurled at British lords equally challenges the goals of Beltway bureaucrats: "Were the talents and virtues which Heaven has bestowed on men given merely to make them more obedient drudges, to be sacrificed to the follies and ambition of a few?" Today, conservative evangelicals and conservative secularists need to coalesce against liberals who, like their 18th century British counterparts, are wedded to higher taxes and lower vices.

To work in coalition, old-line Republicans and evangelicals need to see each other as colleagues, not aliens. Republicans who follow the Declaration's example will support life and liberty, and attack imperial Washington, in a way that promotes coalition rather than exclusion.

Evangelicals who work for such commitments will be showing their understanding of what Witherspoon and Adams knew: Coalition is not the same as compromise. For example, we need to honor prophetic voices and at the same time find ways to save lives now from abortionists. As Franklin said, if we do not hang together, we will all hang separately.

Marvin Olasky writes daily commentary on Worldmagblog, a Townhall.com member group.

http://www.townhall.com

COMMENTARY

GOLD: THE MONETARY ANTI-DRUG -Craig R. Smith, CEO, SATC
June 28, 2004

Debt and credit has become America's drug of choice, exhibited by the 12% annualized growth of consumer spending last month.

"Buy now - pay later" has become the new mantra of the last 40 years, but at a heavy price to our money system, our communities and our families.

The size, role, and intrusion of today's Federal government would be unfathomable from our founder's perspective. It was the dream of our forefathers that "government" would begin inside each citizen, or self-government. That means putting the future ahead of the present.

The modern disintegration of the family, teenage suicide, rising divorce rates and bankruptcy are just a few of the visible casualties of putting the present before the future and can be traced back to modern debt and credit abuse.

America's Greatest Drug Problem

I suggest we admit that debt is America's greatest drug problem today and follow the steps of any good rehab center - to start living within our means.

This may require going "cold turkey" for some.

The only alternative (as with drugs or alcohol) is to gradually increase the dosage to continue the debt high. This is what Alan Greenspan & Co. is banking on to keep the economy afloat.

I suggest that you "just say no" to all drugs - especially debt - or else face the possibility of becoming a bankruptcy statistic in the great debt wash-out we are heading for - unless we change direction.

Sadly, few are prepared to face the coming debt crisis with a financial house that is built on anything more than paper assets, or real estate paper value.

As for me, I sleep a lot better with a solid foundation of historic U.S. gold and silver coins in my portfolio to provide the capital preservation, liquidity and growth needed for the days ahead.

I guess you could say that gold is the monetary anti-drug because it does not feed the credit habit -- it is a 100% pure asset!

Full Story: Symbolism Over Substance from Rediscovering Gold in the 21st Century

P.S. Here is some tangible advice on debt-free living...
from Independent Insurance Agents Assoc.

To get out and stay out of debt, write down these two irrefutable facts and put them up where you can't ignore them:

-You are in debt because you spent more than you earned.
-The only way to pay off your debts is to stop sending out more than you take in, and pay back what you owe.

Whatever the cause of your debt problems - whether you lost your job in a downsizing, lost your senses at the electronics store, or any of a hundred possibilities in between you must pay the piper. But first, take a deep breath and analyze exactly where you stand right now financially.

Here are our Top 11 Ways To Get Out And Stay Out Of Debt:

1) Determine where your money is going (your personal Spending Habits). Then develop a realistic spending plan (a budget). This is half the battle and critical to your future financial success.

2) Pay-off the principle - Starting with the account with the highest interest rate, (or smallest balance), start paying as much as you can to that account, until it is completely paid off. Then go to next account and so on.

3) Cut up and cancel all your credit cards - except one. And then Pay It Off every month.

4) Use a debit card instead of a credit card. It gives you all the convenience of using a credit card but withdraws money only from your checking account and does so immediately, so you can't dig yourself into a hole.

5) Don�t use credit to buy stuff that depreciates or doesn't give you some income-producing potential.

6) Don't borrow if you can't pay it back right away. An exception is your home mortgage. Other than that, credit payments should never exceed about 10% of your income.

7) Be a rate shopper. In the long run, even a small reduction in interest rate could save you a bundle of money.

8) Put Money-Saving Tips Into Practice. Cut back on home energy consumption. Shop at outlet stores or wholesale clubs. Bring your lunch to work more often. Take advantage of free or low cost activities in your community.

9) Start saving regularly. You can build up a nice reserve of cash, if you start today. Just take out all your change and $1 bills at the end of each day and put it in a bucket. Then put it into a savings account and by the end of the year, you'll have a nice fund. And establish a forced saving plan with automatic withdrawals from your payroll check or checking account.

10) Be very careful about using an investment to pay off debt. If possible just keep nibbling away at your credit payments, and keep your investments on track with your long-term goals by taking advantage of compounding interest.

11) Debt Consolidation. Again be very careful. What you save in monthly payments by consolidating debt, you may lose by paying more interest in the long run. If you don't change you spending habits, you could end up in much worse trouble down the road.

If you are having difficulty paying your bills on time, there are some steps you can take to maintain a good credit rating. If you contact the creditor and explain the situation before you run into run in serious problems they will often work with you to come up with an alternate payment arrangement.

Avoid Declaring Bankruptcy - it should only be considered as a last resort.

http://www.iaigonline.com/11ideas.htm

READ: WHY THE GOLD STANDARD NOW? ...-- 6-22-05 -- Much of the support for a gold standard is related to a distrust of central banks and governments, as a gold standard removes the ability of a government to manipulate the value of money."When the money of any country loses its backing there is no standard for any behaviour. Money sets a standard that spreads into every area of human activity." -Harry Schultz

CAN THE U.S. RETURN TO A GOLD STANDARD? -Alan Greenspan
Wall Street Journal [excerpt]
September 1, 1981

The growing disillusionment with politically controlled monetary policies has produced an increasing number of advocates for a return to the GOLD STANDARD - including at times president Reagan.

In years past a desire to return to a monetary system based on gold was perceived as nostalgia for an era when times were simpler, problems less complex and the world not threatened with nuclear annihilation. But after a decade of destabilizing inflation and economic stagnation, the restoration of a GOLD STANDARD has become an issue that is clearly rising on the economic policy agenda. A commission to study the issue, with strong support from President Reagan, is in place.

Certainly a gold-based monetary system will necessarily prevent fiscal imprudence, as 20th Century history clearly demonstrates. Nonetheless, once achieved, the discipline of the GOLD STANDARD would surely reinforce anti-inflation policies, and make it far more difficult to resume financial profligacy. The redemption of dollars for gold in response to excess federal government-induced credit creation would be a strong political signal. Even after inflation is brought under control the extraordinary political sensitivity to inflation will remain.

Those who advocate a return to a GOLD STANDARD should be aware that returning our monetary system to gold convertibility is no mere technical, financial restructuring. It is a basic change in our economic processes. However, considering where the policies of the last 50 years have eventually led us, perhaps there are lessons to be learned from our more distant GOLD STANDARD past.

Read "Gold and Economic Freedom" a classic 1966 speech by Alan Greenspan.

BORDERS, LANGUAGE, CULTURE... & GOLD -Michael Savage, TRN

I, Michael Savage founded The Paul Revere Society (PRS). With a crisis of leadership threatening the United States, PRS stands for the reassertion of our borders, our language, and our culture.

Some say that the borders are arbitrary, English is only one of many languages in our new "Multicultural America," and that we share no common history or values.

We believe in the Sovereignty of our Nation. That English is our national "glue." And that we all do share in the pillars of the Bible, the U.S. Constitution, and the Bill of Rights. These documents and what they stand for are our common cultural heritage.

The Paul Revere Society (PRS) will assert the values inherent in these pillars of freedom. We will seek to educate the citizenry about our nation's freedoms.

Swiss America supports these statements of belief and will continue to sponsor Michael Savage as he brings yet another major issue back into the American agenda: Gold.

"United States gold coins have represented true wealth for centuries because they can't be corrupted," according to Craig Smith's newest book - and I agree! I see U.S. gold coins as a tangible reward for Americans interested in preserving our borders, language and culture ... and their monetary freedom!

If that sounds like you, write this number down: 1-800-289- 26-46, which spells 1-800-Buy-Coin, because Swiss America has a special, limited offer for the Savage Nation: you can recieve a free review copy of "REDISCOVERING GOLD IN THE 21ST CENTURY" by Craig Cmith if you'll read it and write a short review.

The Savage Nation proudly stands for borders, language and culture - now let's "REDISCOVER GOLD" together.

Paul Revere Society Membership Info
Savage Interviews Craig Smith - FREE CD OFFER
More from Savage at SwissAmerica.com

HARD MONEY: CLIMBING A CHINESE WALL OF WORRY -POWELL
June 27, 2004

GATA consultant Reginald H. Howe, co-editor with Robert K. Landis of GoldenSextant.com, has studied the latest gold and silver derivatives reports from the Bank for International Settlements and has made some important findings:

1) There was a huge increase in bank and dealer gold derivatives for the six months ended December 31, 2003.

2) Producer hedging is just a small part of not only gold derivatives but also silver derivatives, and as producer hedging has declined, hedging by banks and dealers has increased.

3) The two largest U.S. commercial bank holders of gold derivatives are responsible for nearly all silver derivatives.

4) The math adds up to a coordinated scheme by central banks to suppress not just the gold price but the silver price too.

5) China is likely involved in the scheme through swaps of silver for gold.

Here's more crucial data you won't read about in The New York Times or the Financial Times.

Howe's commentary is titled "Hard Money Markets: Climbing a Chinese Wall of Worry" and uses charts created by GATA consultant Mike Bolser. You can find it here: FULL STORY

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

MARRIAGE UNDER FIRE - James Dobson, FocusontheFamily

The vote on the Federal Marriage Amendment will be Thursday, July 15. Please consider supporting American Family Association in thier efforts to secure 2,000,000 signatures (they have nearly 1.4 million signers already).

Start by signing the petition yourself, then ask your friends and family to sign the petition at NoGayMarriage.com

For the past forty years, the homosexual activist movement has sought to implement a master plan to utterly destroy the family. Christians around the world have scrambled, wondering how to respond.

In his newest release, Marriage Under Fire, Dr. Dobson addresses the dire ramifications of judicial activism and presents compelling arguments against the legalization of homosexual unions�mobilizing the Christian community to respond to a call to action.

Order Book

A NEW MATRIX MEANS CHANGING TRACKS -By David Bradshaw, Editor
June 27, 2004

"The world models philosophically what the church practices theologically." - DENNIS PEACOCKE, Strategic Christian Services

Today the religious, political and economic matrix is changing, we are told. Is it true, or is history just repeating itself?

Years ago in a radio interview Dennis Peacocke, he made the above statement. I listened and hid this message deep in my heart to see whether time would prove or disprove this premise. A decade later, I see widespread evidence to validate this truth.

Recently the political world has began "changing tracks," from relying on the wisdom and compassion of central-planned or dictatorship governments to solve our social and economic problems, to a fresh emphasis on democracy, self-government, local government and even faith-based solutions.

It now appears that a portion of America is ready to move from political symbols... to substantive statesmen (and women) which is creating a cultural divide - the disuniting of the United States - so to speak.

The economic world is also changing tracks. Amid the rubble of the last Tech bust (the so-called "new" economy) is a growing respect for "old" economic principles. In hindsight we now recognize that true long-term economic growth is the result of hard work, not a panacea of unending, pyramiding profit (gambling).

So, the major economic trend today is also moving away from symbolism and toward substance. Away from mega-government and toward entrepreneurial, home-based business.

U.S. real consumer saving rates are now at historic lows while debt is at historic highs. This too will change tracks. Learning to live debt-free is the next economic wave. Perhaps we can begin to teach the next generation the value of our home, family and friends as the true measure of our "wealth."

Indeed, the political and economic foundations are shaking, but what about the religious foundations?

According to pollster George Barna of Barna Research, millions of American Christians are leaving the church every year because of spiritual stagnation. As bestselling author, James Rutz so clearly articulated in his book, The Open Church; "If you've ever felt alone and unimportant in church there's a good reason, you are alone and unimportant. We need to wake up and read the footprints."

Not only do most Christians feel alone and unimportant during the typical worship service on Sunday morning, they also feel disconnected from the other Christians in their community and neighborhood.

In "Houses That Change The World," an important book written by Wolfgang back in 1998, Simson which argues that house churches are God's solution to our critical need for meaningful relationships, accountability and corporate identity.

Back to Peacocke's premise. Let's look at it in reverse. Is the world practicing philosophically what the church is practicing theologically? Here's a quick test...

1. Where does the idea that bigger is better (government, economy, church) come from - the church, or the world?

2. Where does the idea that the state has jurisdiction over religious freedom come from - the church, or the world?

3. Why are we so preoccupied with getting off of planet earth (via death, suicide, afterlife)? Does it start in the church, or in the world?

If we blame "the world system" for our modern fallacies in politics, economics or religion, then we are still living in denial and without spiritual discernment, therefore "changing tracks" will not make much sense. If we blame the church for our modern fallacies in politics, economics and religion, then "changing tracks" is perfectly logical, ethical, moral and thus spiritual.

I would like to suggest that now is the time to "change tracks" - from humanistic worldview to the wisdom of God. Jesus said the Kingdom of God is built upon some things old and some things new.

"Changing tracks" begins with personal repentance and accepting personal responsibility as men and women of faith for today's dysfunctional government, economy, religion and homes. May God grant us the time to rebuild our nation upon His principles one home at a time for the sake of our kids.

Interesting MATRIX Movie Review...
The Religion of The Matrix: A World Where Anything Is Possible

BLAST FROM THE PAST ...
IN DEFENSE OF FINANCIAL FREEDOM -- July 4, 2003 -- FOUNDING DOCUMENTS... FOUNDERS QUOTES ... Unemployment up, gold steady!... Coins "triple-digit upside" - "A no-brainer"... Forget stocks, go to the beach!...

David M. Bradshaw is Editor of Real Money Perspectives, publisher of Rediscovering Gold in the 21st Century: The Complete Guide to the Next Gold Rush (7/01) and has been an economic commentator since 1987, when he produced the World Economic Perspectives radio show. In 1997, he produced a one-hour TV documentary, "Preparing Wisely for the Next Millennium," which was distributed free of charge at Blockbuster Video nationally. In 1999, he produced a one-hour radio special, "The Big Picture: The Shape of Things to Come" discussing geopolitical, economic and spiritual trends in the 21st Century. ... MORE NOTE: Youngest daughter Braida (5 months) just discovered that she has control of her tongue -- a valuable lesson for us all to remember!