OBAMA TO BE DECIEVED BY RUSSIA

GLEN BECK AMERICAS LEADERS DECIEVED
http://www.youtube.com/watch?v=_HtSb7kwTFE&feature=player_embedded
UK-ID
http://www.prisonplanet.com/uk-id-card-scheme-has-not-been-defeated.html

I LIKE HEIDI MONTAG OR HEIDI PRATT,SHE LOVES KING JESUS AND IS NOT AFRAID TO PRAISE HIS NAME IN PUBLIC.GO HEIDI OUR KING JESUS WILL BE COMING FOR US AT THE RAPTURE ANY TIME NOW.KING JESUS IS OUR HOPE HEIDI LIKE YOU SAID ON JONES TODAY,NOT THE WORLDS FALSE HOPE.

AUDIT THE FED HAS 245 SIGNEES SO FAR.

Auditing the Fed will Audit the State
By tmartin • July 1, 2009 by George F. Smith

If Ron Paul succeeds in getting the Fed audited, the consequences could be far-reaching. Assuming the audit isn’t rigged to protect the guilty, as a similar bill was in 1978, the Fed will need every obfuscating Keynesian to testify and write editorials on its behalf, to reassure the public that monetary matters really are best left to the gods who rule us, such as Ben Bernanke and Timothy Geithner. Monetarists, too, would likely join the Save the Fed crusade, perhaps arguing that even a great free market economist like Milton Friedman considered the Fed useful for preventing and curing recessions.But the really appetizing part of auditing the Fed is knowing what stands behind it. The Fed is a racket at heart, a con game writ large — what else can you call an organization with the exclusive privilege of printing money in the trillions and handing it over to friends? But if this is true, what does that say about the state, the organization that created and sanctions it? Is the Fed an honest mistake in the state’s otherwise undying efforts to preserve our liberty, or might it be a key component of a bigger racket? Without the power of the state, there would be no proposal to audit the Fed because there would be no Fed to audit. Like any cartel, it exists to protect its members from market retribution, and only the police power of the state can make us shoulder that burden. A bill to audit the Fed could by force of logic become a state audit, much like the investigations of the 1972 Watergate burglary exposed the grinning skull behind the government’s public persona. During a Fed audit, for example, would it not be reasonable to ask why the people’s elected representatives continue to support a banking system that secretly steals wealth from their countrymen and other dollar holders? Or are we to take the naïve position that most elected officials really are clueless about the Fed’s policy of currency debasement and the effects such policies have had in history?

Partners in Crime

There are any number of ways a Fed audit could bring the state itself under close scrutiny, but let us sketch just one line of argument:It is well known that banks engage in fractional-reserve lending, meaning that bankers use their deposits in lending operations, with only a part of their loans covered by money reserves. Fractional reserves expand the money supply, which, until the age of Keynes and Fisher, was called inflation. It is also common knowledge that when banks extend too much credit, depositors quite naturally get nervous and start withdrawing their money.

Although fractional reserves would seemingly qualify as a form of embezzlement the act of taking for personal use other people’s property without their knowledge or consent government court rulings have never viewed it as such. As Murray Rothbard observed, a bank that fails to meet its deposit obligations is just another insolvent, not an embezzler. Following the British ruling in Foley v. Hill and Others in 1848, US courts consider that money left with a banker is, to all intents and purposes, the money of the banker, to do with as he pleases.This holds even if the banker engages in hazardous speculation.Thus, according to the state, there can be no embezzlement because the money belongs to the bank, not the depositor. But was there ever a depositor who thought he was turning his money over to the banker so he could do as he pleases with it? Furthermore, when the banker, in loaning the customer’s deposit to another party, essentially creates two claims to the same piece of property (the money deposited), there is no way he can meet his obligations to both depositor and borrower at the same time. Why does the state exempt banks from the law of contradiction? Without a central bank, fractional-reserve banking leads to repetitive crises, as banks are incapable of meeting redemption demands. Banks that have trouble meeting their obligations need money fast, and this is one of the problems a central bank addresses. The very existence of a fractional-reserve banking system invariably leads to the emergence of a central bank as a lender of last resort,Jesus Huerta de Soto tells us. True, but as de Soto recognizes, central banks don’t emerge from open and candid discussions within the banking community, unless one regards their wish for a more elastic currency as an instance of brute honesty. To succeed, central banks need protection from competition; they need to be the monopoly supplier of bank notes. But monopolies in this sense don’t emerge on a free market. A deal needs to be cut between big bankers and influential politicians to create a bank with legal privileges. This arrangement is then forced on us not, presented not as a special privilege but as serving the public interest. And we need to be forced to accept the privileged bank’s fiat money in trade for real goods or services. It bears repeating: a central bank is not a natural product of banking development,as Vera Smith concluded in her well-known study. It comes into being as a result of government favors.What does a government get in exchange for these favors, a Fed auditor might ask?

With a central bank, fractional-reserve banking leads to repetitive crises, but they may differ from crises without a central bank in two respects: one, because a central bank enforces a uniform rate of inflation (credit expansion), one bank can’t jeopardize the rest by overexpanding more than others; consequently, the day of reckoning is delayed, and the correction needed is more severe. And two, when the crisis hits, the central bank provides a means for more monetary wrongdoing. Since the requirement of redemption limits the inflationary potential of a central bank, governments sooner or later get around to outlawing money itself and force us to use exclusively what was formerly only a money substitute. Governments, in other words, outlaw gold and make us use their paper. Question from the auditor: how does this arrangement qualify as a free market, as so many commentators today tacitly believe when they blame the crisis on the free market? With gold gone the central bank becomes government’s genie, able to grant it almost unlimited spending. Massive spending in the 30s didn’t cure the Depression, though it did make government a much heavier load for the market to bear.Does the central bank’s ability to orchestrate inflation have any connection with a government’s involvement in war? Might the world wars have been far shorter and less destructive of life and property, while propagating fewer bloody shoots of their own, without the aid of central banking and a fiat-paper standard? The enormous monetary outlays of war go to politically favored firms, which thus have an incentive to foster a more belligerent and interventionist foreign policy. Is this military-industrial-congressional complex killing us? How eager will politicians be to go to war or police the world if they no longer have a printing press to pay for their adventures? Might we all be better off with a money and banking system that is completely severed from government? And might we be better off with a government that can’t feed on inflation?

The Pujo Committee

Prior to passage of the Federal Reserve Act, Wisconsin Senator Robert LaFollette and Minnesota Congressman Charles Lindbergh Sr. delivered scathing speeches attacking the money trust for causing booms and busts. LaFollette charged that the entire country was controlled by just fifty men, a claim that a Morgan partner rejected as totally absurd. He knew firsthand the number was not more than eight.Following Lindbergh’s resolution, Congress created the Pujo Committee to investigate the big bankers, but the committee was firmly in the hands of the trust itself. During the summer of 1912, the committee scared the wits out of people with statistics and testimonies showing the power Wall Street had over the economy. To the public, Congress seemed to be doing its job by cracking down on corruption, though at no time were Lindbergh or LaFollette called to testify, nor did anyone seem to attach any significance to the fact that the biggest bankers were leading the charge for reform.The committee concluded that banking reform was urgent and necessary to bring Wall Street under control, and a year later Congress and President Wilson gave the country a central bank as an early Christmas present. As Rothbard notes, the composition of the first Federal Reserve Board more or less reflected the power structure of those present at the Fed’s founding meeting at Jekyll Island in 1910, with Morgan man Benjamin Strong actually running the system as head of the New York Fed.Power grabs are a frequent and predictable outcome of government investigations. However, any audit that exposes the Fed’s relationship to the state will be worth doing, even if the Fed’s friends keep it where it is.

DANIEL 7:23-24
23 Thus he said, The fourth beast(THE EU,REVIVED ROME) shall be the fourth kingdom upon earth,(7TH WORLD EMPIRE) which shall be diverse from all kingdoms, and shall devour the whole earth, and shall tread it down, and break it in pieces.(TRADE BLOCKS)
24 And the ten horns out of this kingdom are ten kings that shall arise:(10 NATIONS) and another shall rise after them;(#11 SPAIN) and he shall be diverse from the first, and he shall subdue three kings.(BE HEAD OF 3 KINGS OR NATIONS).

Sweden kicks off EU presidency in institutional fog by Yacine Le Forestier – Wed Jul 1, 2:13 pm ET

STOCKHOLM (AFP) – Sweden kicked off its six-month European Union presidency Wednesday amid fears the bloc's unresolved institutional woes may overshadow its priorities of tackling climate change and the economic crisis.Now is not the time to look inwards and look at institutional questions,Swedish Prime Minister Fredrik Reinfeldt told reporters at a press conference in Stockholm.Now is the time to show leadership,in particular ahead of a global summit on reducing greenhouse gases in December in Copenhagen, and for that we need clarity,he said.That clarity is clearly lacking in European institutions.The most urgent problem facing Sweden's presidency is that it risks finding itself with a lame duck president of the European Commission.European leaders in mid-June gave Jose Manuel Barroso their lukewarm support for his re-election for a second five-year term, and the European parliament, which must also vote on the matter, has indicated it could postpone its decision until the autumn.
That would prolong the uncertainty and could give Barroso's critics on the left, the Greens and even the liberals, time to come up with a rival candidate.Aware of this risk, Barroso urged EU parliamentarians to find a rapid solution.The European parliament is expected to announce on July 9 whether or not it will postpone its vote.

We should have clarity as soon as possible ... I hope the decisions will be taken in a way that will reinforce and not weaken the European institutions,Barroso said.
Reinfeldt also called for a rapid resolution to the issue, saying parliament should present an alternative candidate if it is not satisfied with Barroso.Sweden will also have to steer the EU through the problems posed by the Lisbon Treaty, which is aimed at streamlining decision-making in the European Union and making the bloc more influential in the world.The future of the treaty, which has to be ratified by all 27 EU members, is in limbo pending a new referendum that Ireland will hold in early October after Irish voters rejected it in a first plebiscite in June 2008.Opinion polls suggest the yes side will win the referendum, but if those predictions are wrong Europe would be plunged into a new crisis.Apart from Ireland, three other countries have yet to ratify the treaty.They are Germany, where the country's top court on Tuesday delayed the ratification of the document until a law protecting national parliamentary powers is passed, as well as Poland and the Czech Republic, whose presidents are dragging their feet on the issue.If the treaty is ultimately ratified, Stockholm will then have to oversee the nominations and wrangling between member states for the new positions created in the treaty: a de facto EU president and foreign minister who will enjoy wider powers.Despite the myriad institutional issues, Stockholm insisted Wednesday that it would be able to focus on its two main priorities tackling soaring unemployment in Europe and improving the regulation of financial markets following the economic crisis, and reaching a climate deal with the United States and developing countries.Reinfeldt stressed there was not a minute to lose in talks to reach a deal in Copenhagen.

New eurosceptic group to campaign against EU treaty in Irish referendum
ANDREW WILLIS 01.07.2009 @ 17:45 CET

EUOBSERVER / BRUSSELS – The Europe of Freedom and Democracy Group – the new eurosceptic party formerly known as the Independence-Democracy Group - announced its party name and political programme on Wednesday (1 July).The new party of 30 MEPs also intends to campaign against the Lisbon Treaty in the second Irish referendum likely to be held this October, with the party's co-president, Nigel Farage of UKIP, laying down a strong marker at the party's first meeting in the European parliament. We will do our damndest in the second referendum to make sure that the people of Ireland understand that these so-called guarantees that they were given at the recent European summit, frankly are not worth the paper that they were written on,he said.

Irish prime minister Brian Cowen successfully secured legal guarantees in the areas of taxation, social issues and neutrality from EU leaders who met in Brussels last month, in the hope they will persuade Irish voters to back the EU's reforming treaty a second time round. However Mr Farage said Irish voters had already rejected the Lisbon Treaty in a referendum last June, just as French and Dutch voters rejected the similar Constitutional Treaty in 2005, but politicians were not willing to listen to their responses.Mr Barroso and his cronies don't understand what the word no means, he said. Whether the new party will actively campaign in Ireland during the second referendum has yet to be decided Mr Farage told EUobserver, but the party is currently seeking expert advice on the legality of the three guarantees and will distribute information in Ireland during the campaign. I'm hoping by the time we pack up in Strasbourg for the summer [in two weeks time], that we will have a more advanced plan of action,he said.

Party make-up and political programme

The new party will be dominated by the United Kingdom Independence Party (UKIP) with 13 MEPs and the Lega Nord party from Italy with nine MEPs. Francesco Speroni from the Lega Nord will be the second co-president of the Europe of Freedom and Democracy group, along with Mr Farage. The Laic Orthodox Party (LAOS) from Greece will contribute two MEPs to the new eurosceptic party, as will the Danish People's Party.

The Mouvement pour la France, the Reformed Political Party from the Netherlands, the True Finns and the Slovak National Party will all contribute one MEP, bringing the current total to 30 MEPs from eight countries.Mr Farage said the party was still in negotiations with several other parties around Europe and hoped to bring more deputies on board before the first plenary session in Strasbourg on 14 July. Mr Farage also outlined the new party's four-point political programme on Wednesday, with the document placing strong emphasis on the principles of democracy and the sovereignty of nation states.The group favours an open, transparent, democratic and accountable co-operation among sovereign European states and rejects the bureaucratisation of Europe and the creation of a single centralised European superstate,reads the programme.

WHAT DOESN'T OBAMA LIE ABOUT BOLIVIAS LEADER IS CORRECT HES A DECIEVER.

Bolivia leader says Obama lied about cooperation By CARLOS VALDEZ, Associated Press Writer – Wed Jul 1, 4:25 pm ET

LA PAZ, Bolivia – President Evo Morales on Wednesday accused Barack Obama of lying by pledging to change America's historically heavy-handed relationship with Latin America and then halting $25 million in annual trade benefits for Bolivia.The U.S. on Tuesday said it is ending the import duty waivers because world's No. 3 cocaine-producing country is not doing enough to reduce unconstrained cultivation of coca.

Morales said the move contradicts Obama's promise at the Summit of the Americas in April to be a peer rather than an overseer of countries in the region. President Obama lied to Latin America when he told us in Trinidad and Tobago that there are not senior and junior partners,he told reporters.The former coca-growers' union leader, who expelled U.S. drug agents from his country last year, said the U.S. trade representative used pure lies and insults to justify its decision.The trade office said there has been explicit acceptance and encouragement of coca production at the highest levels of the Bolivian government.Bolivia, which considers coca a sacred crop that has many traditional uses other than cocaine, says the U.S. move will cost the impoverished country about 20,000 jobs, particularly in textiles and leather. The country has had only limited success in developing alternatives to U.S. markets, said the of the Bolivian Foreign Trade Institute, Gary Rodriguez, told The Associated Press that Bolivia has had limited success in trying to compensate for the anticipated loss of U.S. markets and that he expected Tuesday's announcement to lead to layoffs.Neither Venezuela, Iran, Argentina or even Brazil have so far worked as alternative markets,he said.Venezuela had promised to buy $13 million in goods over the past year but the La Paz exporter's association, CAME, said Venezuela lacks the U.S. dollars to pay for them.

The U.S. is extending tariff exemptions for Ecuador for another six months as part of the Andean Trade Preference Act, but Ecuador, Peru and Colombia will see those duty-free privileges expire at year's end. The region's cocaine-producing and transit countries have been allowed to export thousands of products to the United States duty-free since 1991 in hopes that income from legal exports will help wean peasants off selling coca, but that hasn't happened.The U.S. government estimates Bolivia's potential cocaine yield at 195 metric tons, and Morales himself said Wednesday that coca cultivation is up in Bolivia — by 6 percent last year by U.N. survey. But he said his government is making a good-faith control effort.U.S. drug agents say landlocked Bolivia exports most of its cocaine to Europe through Brazil and Argentina. The trade office said the DEA previously had 57 employees in four Bolivian cities. Now those agents are spread elsewhere across the region, leaving what U.S. law enforcement officials call a black hole in Bolivia.Associated Press Writer Frank Bajak in Bogota, Colombia, contributed to this report.

STORMS HURRICANES-TORNADOES

LUKE 21:25-26
25 And there shall be signs in the sun, and in the moon, and in the stars; and upon the earth distress of nations, with perplexity;(MASS CONFUSION) the sea and the waves roaring;(FIERCE WINDS)
26 Men’s hearts failing them for fear, and for looking after those things which are coming on the earth: for the powers of heaven shall be shaken.

El Nino seems all but certain: Australia By Bruce Hextall and Michael Perry – Wed Jul 1, 5:02 am ET

SYDNEY (Reuters) – An El Nino weather pattern this year appears almost certain, Australia's Bureau of Meteorology said on Wednesday in a revised forecast, raising the prospect of drought in Australia and a even weaker monsoon in India.The odds for El Nino, an abnormal warming of the eastern Pacific Ocean that creates havoc in weather patterns across the Asia-Pacific region, had risen significantly since two weeks ago, when the bureau said there was a more than 50 percent chance.El Nino is a little bit like recession, you are in it before you can say you have one. If it continues as it is now, the historians will say the El Nino started in May,said David Jones, head of the bureau's climate analysis, told Reuters.

He said they could declare a full El Nino within weeks.

That's probably bad news for farmers in Australia who have sown near record acreage, and in India, which is already bracing for below-average monsoon rains, the lifeblood of the country's agriculture.It would also have implications for commodity markets, potentially lifting wheat prices that have slumped over the past month on expectations of a bumper global harvest, and adding further fuel to soaring sugar prices that are already bracing for a second disappointing crop year from top consumer India.Most of Australia's 2009/10 wheat crop has been planted following plentiful rain, leading to forecasts of a harvest of as much as 23 million tonnes, the best since 2005/06 when 25.2 million tonnes were harvested.The growers I speak to say if we were to get some rains in spring we could get above average yields. But if the El Nino forecast materialized, we are again at risk of having a sub-standard crop,said Richard Koch, managing director of farm advisory firm Profarmer.Australia's grain production is still recovering from the worst drought in more than 100 years that cut the annual wheat harvest to as little as 10.6 million tonnes in 2006/07.

India's weather office last week cut its forecast for the June-September monsoon rains by 3 percentage points to 93 percent of normal, after four years of above average rainfall. From June 1 to June 24 rains were 54 percent below normal.A severe El Nino spawns searing drought in countries in southeast Asia, harming rubber production, while causing heavy flooding in Peru, Ecuador and Chile, among others.

LITTLE CHANCE OF AVOIDING EL NINO

The bureau's latest report found that the eastern Pacific Ocean was continuing to warm, with sea temperatures one degree Celsius above normal, and trade winds were continuing to weaken.The Southern Oscillation Index (SOI), calculated from monthly and seasonal fluctuations in air pressure between Tahiti and Darwin, remained at around negative 2, while the monthly value for May was negative 5.A sustained negative SOI often indicates El Nino.A more complete picture of the situation in the Pacific will be available next week when the final June indices are calculated,said the report on http://www.bom.gov.au/climate/enso/The next report is due on July 8.The Climate Prediction Center in the United States said in June that conditions were favorable for a switch to El Nino conditions during June to August.(Editing by Michael Urquhart)

DISEASES

REVELATION 6:7-8
7 And when he had opened the fourth seal, I heard the voice of the fourth beast say, Come and see.
8 And I looked, and behold a pale horse:(CHLORES GREEN) and his name that sat on him was Death, and Hell followed with him. And power was given unto them over the fourth part of the earth, to kill with sword,(WEAPONS) and with hunger,(FAMINE) and with death,(INCURABLE DISEASES) and with the beasts of the earth.(ANIMAL TO HUMAN DISEASE).

WHO working on formulas to model swine flu spread By FRANK JORDANS, Associated Press Writer – Wed Jul 1, 3:45 pm ET

GENEVA – The World Health Organization said Wednesday it is working to mathematically model the spread of swine flu in an attempt to better understand how the outbreak developed from a handful of cases to a global epidemic in less than two months.WHO brought together over 20 independent experts beginning Wednesday for the three-day meeting in Geneva.They will be working together to describe and predict the behavior and impact of the pandemic, and demonstrate potential outcomes of proposed intervention efforts,spokeswoman Aphaluck Bhatiasevi told The Associated Press.The meeting comes as it becomes clearer that actual case numbers may be far higher than the agency's tally of officially diagnosed infections.According to WHO's latest update Wednesday, a total of 77,201 confirmed cases and 332 deaths have been reported in over 110 countries.But U.S. health officials said last week the number of Americans infected with the new A(H1N1) virus may be as high as 1 million. The estimate by the U.S. Center for Disease Control and Prevention was based on mathematical modeling and surveys by health officials.We're now probably off by orders of magnitude in terms of the real number of cases versus the number of diagnosed cases,said Andrew Pekosz, a flu expert at Johns Hopkins University in Baltimore.In countries where the virus has firmly established, counting individual cases doesn't paint an accurate picture of the disease anymore, he said.Still, information about confirmed infections can be fed into mathematical models to predict future developments and detect anomalies.A jump from one patient to 60 patients isn't a concern, but a jump from one to 300 shows you there's something going on that needs to be looked at carefully,said Pekosz.On the other hand, if you've got 100 cases and then week later you've got 150, most mathematical models would indicate that either the infection in your country isn't behaving normally, or you're not diagnosing all the cases that are occurring.

WHO's Bhatiasevi said the experts would be looking not just at case numbers, but also at how many severe infections have occurred and which measures have helped stem the spread of the disease.This will help WHO advise countries on how to respond to the pandemic and target their supply of anti-viral medication and later vaccines, when those become available.During the outbreak of SARS in Asia and foot and mouth disease in Britain mathematical models were applied after the event, said Pekosz.Swine flu may offer the first opportunity to apply the formulas as a pandemic is occurring, he said.

Rwandan bill would lead to forced sterilization: rights group Wed Jul 1, 1:51 pm ET

NAIROBI (AFP) – A US-based rights group on Wednesday urged Rwanda to revise a draft law which it said would introduce compulsory HIV testing and require all people with mental disabilities to be sterilized.Compulsory HIV testing and forced sterilization are counter-productive to the Rwandan government's goal of improved reproductive health,said Joe Amon, health and human rights director at Human Rights Watch.

Provisions in the current bill that increase stigma, rely on coercion, and deny individuals their reproductive rights should be removed,he said.The reproductive health bill provides for HIV testing for all individuals who plan to marry, as well as for testing upon the request of a spouse.A child or incapacitated person may be tested by a doctor without seeking consent, who may then show the result to parents or guardians.HRW pointed out that mandatory HIV testing and disclosure have been condemned by the UN as a violation of privacy.The group said mandatory testing and compulsory disclosure can put women at increased risk of abuse and undermine public trust in the health care system.The draft legislation would also oblige the Rwandan government to suspend fertility for mentally handicapped people,the rights group said.
Systematic forced sterilization had been recognised as a crime against humanity by the Rome Statute of the International Criminal Court,it said.

DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.

JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.

REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.

EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.

REVELATION 13:16-18
16 And he(FALSE POPE) causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(CHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM

WORLD MARKET RESULTS
http://money.cnn.com/data/world_markets/

HALF HOUR DOW RESULTS THU JULY 02,2009

09:30 AM -2.19
10:00 AM -164.52
10:30 AM -174.52
11:00 AM -160.37
11:30 AM -167.85
12:00 PM -176.69
12:30 PM -170.85
01:00 PM -175.89
01:30 PM -176.29
02:00 PM -178.88
02:30 PM -180.85
03:00 PM -179.04
03:30 PM -196.49
04:00 PM -223.32 8280.74

S&P 500 896.42 -26.91

NASDAQ 1796.52 -49.20

GOLD 930.80 -10.50

OIL 66.66 -2.65

TSE 300 10,245.91 -129.00

CDNX 1092.58 +0.61

S&P/TSX/60 621.12 -8.94

MORNING,NEWS,STATS

YEAR TO DATE PERFORMANCE
Dow -3.10%
S&P +2.22%
Nasdaq +17.04%
TSX Advances 636,declines 852,unchanged 270,Volume 1,942,272,441.(HOLIDAY TODAY)
TSX Venture Exchange Advances 361,Declines 413,Unchanged 339,Volume 216,545,194.(HOL)

Dow -138 points at 4 minutes of trading today.
Dow -190 points at low today.
Dow +0.23 points at high today so far.
GOLD opens at $929.80.OIL opens at $67.03 today.

AFTERNOON,NEWS,STATS
Dow -190 points at low today so far.
Dow +0.23 points at high today so far.

DAY TODAY PERFORMANCE - 12:30PM STATS
NYSE Advances 589,declines 2,910,unchanged 86,New Highs 8,New Lows 37.
Volume 2,230,212,201.
NASDAQ Advances 426,declines 2,119,unchanged 95,New highs 7,New Lows 13.
Volume 945,960,928.
TSX Advances 495,declines 755,unchanged 260,Volume 968,455,841.
TSX Venture Exchange Advances 235,Declines 287,Unchanged 272,Volume 99,694,508.

WRAPUP,NEWS,STATS
Dow -223 points at low today.
Dow +0.23 points at high today.
Dow -2.63% today Volume 157,795,974.
Nasdaq -2.67% today Volume 1,825,344,259.
S&P 500 -2.91% today Volume N/A

THEY EXTENDED TRADING 15 MINUTES AT THE END OF THE DAY DUE TO A GLITCH.

TSX down as oil drops, U.S. jobs data weighs JULY 2,09

TORONTO (Reuters) – Toronto's main stock index fell on Thursday morning as commodity prices faltered as U.S. data showed more job losses than expected in June, adding to concerns about the pace of economic recovery.At midmorning the TSX index was off early lows but still followed the downtrend of world markets after U.S. data showed employers cut 467,000 jobs in June, while the unemployment rate rose to 9.5 percent from 9.4 percent.That helped to put pressure on oil prices, which fell below $67 a barrel.The big energy sector, down 2.6 percent, led the TSX lower, with Petro-Canada falling 4.8 percent to C$42.75, while Suncor Energy was down 4.7 percent at C$33.72. Imperial Oil dropped 3.6 percent to C$43.50.The employment numbers are horrible in the U.S. It still shows there is significant job losses..., said Paul Gardner partner and portfolio manager at Avenue Investment Management.The real feeling is the economy is slowing down less, but it's still slowing and there is no growth.At 10:54 a.m. the S&P/TSX composite index was down 44.67 points, 0.43 percent, at 10,330.24, with seven of its 10 main lower.Cushioning the fall was the index's mining-heavy materials sector, which was up 1.6 percent even though gold and base-metal prices were lower. Goldcorp was up 2.3 percent at C$41.36, and fertilizer producer Potash Corp of Saskatchewan climbed 2 percent to C$110.71.On Wednesday, Canadian markets were closed for Canada Day.(Reporting by Nina Lex; editing by Peter Galloway)

Sweden warns against overzealous hedge fund regulation
ANDREW WILLIS Today JULY 2,09 @ 09:22 CET

As members of the European commission gathered in Stockholm to mark the start of the Swedish presidency on Wednesday (1 July), the country's financial markets minister warned against overregulation of the hedge fund and private equity sectors. It is not private equity that caused the crisis, nor hedge funds. But in some countries, the political debate portrays private equity and hedge funds as the problem,said Mats Odell.That's not the same as saying we shouldn't regulate them. But the aim is to have sound regulation and not to kill the industry,he added.Mr Odell's comments will provide some much needed cheer to the EU's hedge fund and private equity industries largely based in London who are concerned that draft legislation produced by the European commission in April could drive them out of business. The commission's draft directive on alternative investment fund managers (AIFM) will require managers of hedge funds and private equity firms to register with their home member state authorities.Added to this, managers will also have to disclose information on borrowing to regulators and notify authorities about the markets and assets they plan to invest in. The aim is to prevent a build up of risks that could destabilise Europe's financial system.As part of the April financial package, the commission also put forward a recommendation on reducing executive pay and another on remuneration for risk-taking staff.The non-binding recommendations invite member states to ban severance pay for directors, known as golden parachutes,in cases of poor performance, and promote the use of long-term performance criteria when deciding annual remuneration.

Autumn tussle

Sweden has signalled that securing agreement on financial regulation and a new supervisory network will be a chief component of its six-month presidency, along with tackling the economic downturn and climate change.The original release of the commission's AIFM directive was delayed as member state governments wrangled over leaked drafts this spring, with France, Germany and the Socialists in the European parliament calling for strict new rules. Wednesday's comments by Mr Odell suggest Swedish allegiances may lie closer to the UK and industry positions however, setting up a potential tussle this autumn when member states are due to debate the commission plans.There is an exaggerated fear that private equity contains big systemic risk. Our opinion is that it does not,said Mr Odell.And while the industry is preparing for a major lobbying offensive to have the proposals watered down, Socialists in the European parliament have already signalled that the current draft directive does not go far enough in their view. Following the April publication, Socialist president Poul Nyrup Rasmussen said the directive has more holes than a Swiss cheese and would have political consequences for commission president Jose Manuel Barroso's chances of securing a second term.Mr Barroso's bid for another five years already appears to have influenced the proposals, and speaking with the Swedish Prime Minister Fredrik Reinfeldt at the opening of the Swedish presidency on Wednesday, Mr Barroso was at pains to play down his market-friendly credentials.I am not a neo-liberal. I am a central reformer,he told journalists.

Cap and Trade Equals Fraud and Tax Glenn Jacobs (the actor and wrestler Kane)
Campaign for Liberty Wednesday, July 1, 2009

H.R. 2454: American Clean Energy and Security Act of 2009 will result in a totalitarian centralization of the American economy in the administrative agencies of the federal government, especially the Environmental Protection Agency (EPA). This 1,300 page horror is a prime example of congressional modus operandi — no one in Congress actually had the opportunity to read the bill which was, incidentally, being amended as it was debated on the floor. As H.R. 2454 shows, this axiom still holds true: the more benign the title of a congressional bill, the more draconian its contents. After all, who could be against clean energy or security? The real goal of H.R. 2454 has nothing to do with either of these; it is a power grab, pure and simple.

While we have all heard much about the tax implications of H.R. 2454 and that every American family could see a $3,000 a year increase in their energy costs, H.R. 2454 does much more than that. H.R. 2454 is a fascistic fait accompli, giving the government expansive powers to regulate, subsidize, and tax more sectors of the economy. The bill authorizes more federal government control over the electrical grid, state and local building codes, lighting and appliances, industry, the financial markets, and, perhaps most ominously of all, the health care system. In addition, it includes wealth redistribution measures and would allow increases in foreign aid.Part of the rhetoric surrounding H.R. 2454 is that it will help break America’s dependency on foreign oil by encouraging development of renewable energy sources. Most likely, the opposite will happen as oil companies cope with U.S. carbon legislation by closing fuel plants, cutting capital spending and increasing imports.

Ironically, cap and trade — the cornerstone of H.R. 2454 — does not protect the environment! Even Greenpeace opposed H.R. 2454, recognizing that it chooses politics over science.While I would argue that the science to which Greenpeace refers is dubious at best, there is no question that H.R. 2454 has put politics above all else.

In a cap and trade system, the government deems a certain level of pollution acceptable as long as the polluter pays a tax. That’s like saying that it’s acceptable for someone to throw trash on your lawn so long as he has bought a government permit. Even worse, he can throw even more trash on your lawn if he buys additional permits from someone who refrains from throwing trash on your lawn. In effect, cap and trade legalizes pollution.Advocates of cap and trade have used tortured logic to portray it as a market based system. James Boyce, an economist at the University of Massachusetts, claims that this is the biggest creation and allocation of property rights since the Homestead Act.This statement is false on its face and falls into the realm of fantasy.Unlike the Homestead Act which dealt with property that actually existed in the real world, the property rights to which Boyce refers have been created exclusively through government edit. There is no such thing as a carbon credit except on a bureaucrat’s spreadsheet. Boyce’s statement turns the concept of property rights the basis of a free society on its head. The right to pollute is not a form of property, it is a government granted privilege.No one has a right to have clean air and water provided for them at someone else’s expense. But no one should have the right to pollute air or water that he does not own. Far from creating a new form of property rights, cap and trade undermines the property rights that we own in our own bodies by granting polluters the legal privilege of polluting resources that they do not own and that we put into our bodies, i.e. air and water.

Litigation (in the cases where harm has come to individuals) and a strict respect for property rights offer much more effective ways of dealing with pollution than regulation does.True environmentalists — those of us who are concerned about things such as clean air and water should oppose schemes like H.R. 2454. H.R. 2454 is not designed to clean up the environment. It is designed to generate more revenue for the government and to give the government more power over the economy, our lives, and our freedom. And it does so at the expense of the environment.

Canada seen worst of G8 not curbing climate change By Daniel Flynn – Wed Jul 1, 11:57 am ET

ROME (Reuters) – With only five months to go until a new global pact on climate change, none of the Group of Eight nations is doing enough to curb global warming, with Canada and the United States ranking bottom, a study said on Wednesday.The G8 Climate Scorecards,compiled by environmental group WWF, said even the greenest members of the rich nations' club Germany, Britain and France were not on track to meet a danger threshold of limiting temperature rises to below two degrees Celsius.G8 leaders gather in Italy next week to discuss the world financial crisis and climate change, hoping to make progress toward a new pact on global warming due to be signed in Copenhagen in December to replace the 1997 Kyoto deal.They will be joined by members of U.S. President Barack Obama's Major Economies Forum in a bid to forge broad consensus.While there might be a bailout possibility for the financial system, no amounts of money will save the planet once climate change crosses the danger threshold,WWF head James Leape wrote in the foreword to the report.Wednesday's annual G8 scorecard singled out Canada, saying Prime Minister Stephen Harper's conservative government had not implemented a plan to curb emissions, already among the highest in the world per capita and steadily increasing. Canada was not even close to meeting its Kyoto agreements, the WWF said.

The report praised U.S. President Obama for prioritizing clean energy in his economic recovery package and promoting green legislation, but said U.S. per capita emissions were among the highest in the world and were projected to rise.There has been more action in the U.S. in the last four months than in the last three decades a trend that will hopefully continue,the report said.Obama's government has not embraced the 2degree Celsius goal adopted by the European Union. Temperatures have already risen by 0.7 percent since the start of the industrial era.In order to avoid or reduce the risk of catastrophic climate change, G8 leaders must agree to do everything they can to stay below 2 degrees,said Kim Carstensen, leader of the WWF's Global Climate Initiative.

GERMANY TOP, THEN BRITAIN

Top of the G8 rankings came Germany, followed by Britain. The WWF praised Berlin for promoting renewable energy and an ambitious target of cutting greenhouse gases by 40 percent by 2020, though said this lacked clear plans for implementation.There is no reason to celebrate,said Regine Guenther, director for climate change, WWF Germany, adding that emissions needed to be cut by 95 percent by 2050.This would be essential to keep global temperature rises well below two degrees.Britain has already more than achieved its Kyoto pact targets due to a transition from coal to gas-fired power stations in the 1990s, but there was room to cut emissions in transport, power generation and services, the report said.France has low emissions per capita for an industrialized nation due to its reliance on nuclear power, which provides more than three-quarters of its needs. The WWF does not support nuclear power due to concerns over safety and radioactive waste.G8 host Italy has low emissions compared to G8 partners due mainly to the structure of its economy, the WWF said, but emissions were rising and Prime Minister Silvio Berlusconi's government was not making headway to meeting Kyoto obligations.(Editing by Elizabeth Fullerton)

HEAT OF THE MOMENT The high cost of green jobs,Spain learns the hard way more employment lost than gained July 02, 2009 1:00 am Eastern 2009 WorldNetDaily

WASHINGTON – Next week, U.S. Energy Secretary Steven Chu will visit Ringgold, Va., on a mission to develop so-called green jobs based on renewable energy sources.

President Obama's administration is spending massive amounts of taxpayer money on subsidizing the new jobs with the assumption they will more than replace employment sure to be eliminated by carbon taxes, cap-and-trade legislation and other limits on traditional industry. But Washington might want to examine an ominous warning from Spain, an early pioneer in pursuing the theory of green jobs.According to economics professor Gabriel Calzada of King Juan Carlos University in Madrid, the Spanish government's renewable energy initiatives have destroyed 2.2 jobs for every new green job created.Calzada even projects, for the benefit of Americans, that the same formula will apply in the United States if it pursues renewable energy at the expense of conventional energy sources. As President Obama correctly remarked, Spain provides a reference for the establishment of government aid to renewable energy,Calzaza wrote in Study of the Effects on Employment of Public Aid to Renewable Energy Sources.No other country has given such broad support to the construction and production of electricity through renewable sources. The arguments for Spain's and Europe's 'green jobs' schemes are the same arguments now made in the U.S., principally that massive public support would produce large numbers of green jobs. The question that this paper answers is at what price? That turned out to be a faulty premise, continues Calzada. In fact, he writes nine jobs have been lost for every four created under such initiatives.

The study's results demonstrate how such 'green jobs' policy clearly hinders Spain's way out of the current economic crisis, even while U.S. politicians insist that rushing into such a scheme will ease their own emergence from the turmoil,wrote Calzada. Other critics of the green jobs approach have suggested that proponents are emphasizing only benefits without an exploration of the costs. Yet, they see it as doubtful that the Obama administration, which has cited Spain as a model for the creation of green jobs,will heed Calzada's warnings. Calzada's study is especially devastating in that President Obama looks to Spain's policy as a model for the United States,explains Jon Sanders, a policy analyst and research editor at the John Locke Foundation.A policy that kills more than twice as many jobs as it creates and that raises energy prices, which is especially harmful toward the poor, would be a bad idea in an economic boom. In the midst of a severe recession, it would be folly on a scale not seen since the backfiring policies of the Depression era,he told Environment & Climate News.

HEAT OF THE MOMENT Scientists to Congress: Sky is not falling,Say global warming alarmism unproven, energy taxes crippling July 01, 2009 8:06 pm Eastern
By Bob Unruh 2009 WorldNetDaily

A team of scientists with years of expertise in climate issues has written an open letter to Congress asserting the sky is not falling and there is no evidence man is causing global warming.The letter was signed by physics professors Robert H. Austin and William Happer of Princeton, environmental sciences professor S. Fred Singer of the University of Virginia, retired manager for strategic planning at ExxonMobil Roger Cohen, physics professor (emeritus) Harold W. Lewis at UC-Santa Barbara and others.Their names are tied to long lists of initials, including APS, or the American Physical Society; AAAS, or the American Association for the Advancement of Science; and AGU, or the American Geophysical Union.At issue is the pending cap-and-trade tax increase in Congress that would impose not only restrictions on the use of energy, but also taxes on that use. It narrowly was passed in the U.S. House but faces some hurdles in the Senate.

The letter is being publicized at the Climate Depot website, along with others.

It addresses a recent letter from the Woods Hole Research Center that demanded quick action by Congress to avoid global disaster.The letter purports to be from independent scientists, but that center is the former den of the president's science adviser, John Holdren, and is far from independent,the new letter said. This is the same science adviser who has given us predictions of almost certain thermonuclear war or eco-catastrophe by the year 2000, and many other forecasts of doom that somehow never seem to arrive on time.The new letter said the facts are simple: The sky is not falling; the Earth has been cooling for 10 years, without help. The present cooling was NOT predicted by the alarmists' computer models, and has come as an embarrassment to them.The finest meteorologists in the world cannot predict the weather two weeks in advance, let alone the climate for the rest of the century. Can Al Gore? Can John Holdren? We are flooded with claims that the evidence is clear, that the debate is closed, that we must act immediately, etc, but in fact THERE IS NO SUCH EVIDENCE; IT DOESN'T EXIST.The legislation would, however,cripple the U.S. economy, putting us at a disadvantage compared to our competitors,the scientists warned. For such drastic action, it is only prudent to demand genuine proof that it is needed, not guesswork, and not false claims about the state of the science,they wrote.Finally, they wrote, climate alarmism pays well.Many alarmists are profiting from their activism. There are billions of dollars floating around for the taking, and being taken,the letter said.The Woods Hole letter had contended, New information arrives daily to confirm what many specialists have known for three decades: human-caused climatic disruption is serious, moving rapidly, and gaining momentum with every delay in correcting the trend.The Austin letter, however, said such instances of consensus simply are not proof.

Others signing the new letter were physics professor Laurence Gould of University of Hartford and meteorology professor Richard Lindzen of MIT. Their diagnosis of the climate issue largely agreed with Alan Carlin, the senior operations research analyst at the EPA's National Center for Environmental Economics.Carlin submitted his research on the agency's greenhouse gases endangerment findings and offered a fundamental critique on the EPA's approach to combating CO2 emissions. But officials refused to share his conclusion in an open internal discussion, claiming his research would have a very negative impact on our office.Instead, his study was barred from circulation within the EPA and was never disclosed to the public for political reasons, according to the Competitive Enterprise Institute, or CEI, a group that has accessed four internal e-mails on the subject.CEI General Counsel Sam Kazman told WND, His boss basically told him, No, I'm not going to send your study further up. It's going to stay within this bureau.A March 12 e-mail to Carlin warned him not to have any direct communication with anyone outside NCEE on endangerment.Carlin, a researcher who earned his doctorate in economics from Massachusetts Institute of Technology and an undergraduate degree in physics from California Institute of Technology, informed officials that two-thirds of his references were from peer-reviewed publications and defended his inclusion of new research on the topic. It is also my view that the critical attribute of good science is its correspondence to observable data rather than where it appears in the technical literature,he wrote.I believe my comments are valid, significant and contain references to significant new research They are significant because they present information critical to justification (or lack thereof) for the proposed [greenhouse gas] endangerment finding.WND also has reported on the Petition Project, which has compiled the signatures of more than 31,000 scientists, including some 9,000 Ph.D.s, who flatly reject the global warming agenda.

Bureaucrats Will Carry Out Mandatory Home Inspections Under Climate Bill
Paul Joseph Watson Prison Planet.com Thursday, July 2, 2009

The controversial climate bill that is set to be taken up by the Senate on Monday after its passage in the House will legislate home inspections by government regulators who will demand to audit every aspect of your property under the threat of substantial and repeated fines if their visits are denied or their demands not satisfied.The climate legislation is written in a manner that automatically assumes that global warming is taking place and that it is attributed to rising CO2 levels, despite the fact that this is a highly contentious question and is being rejected by more and more scientists as time goes by.As Tony Pacheco writes in his excellent article today, the bill will audit every aspect of your home and life.The bill states every home owner will receive an energy audit. What is a home energy audit? It is an intrusive visit made by the bureaucrats at the Home Energy Team or a similar group. They will examine and report the way you live your life directly to RESNET (Residential Energy Services Network) . Light fixtures, socket types, spas, hot tubs, windows, appliances, walls and roofs will all be under review. Energy tests will be conducted throughout your house. At the end of the visit you will receive a report and a rating. The report will focus on the changes you need to make and the rating is called a HERS rating (Home Energy Rating System). RESNET will perform the audits through authorized contractors. RESNET has adopted the Mortgage Industry National Home Energy Rating Standards. The standards set the national procedures for home energy ratings.

According to RESNET, an audit consists of:Comprehensive Home Energy Audit - A level of the RESNET Home Energy Audit process defined by this standard to include the evaluation, diagnosis and proposed treatment of an existing home. The Comprehensive Home Energy Audit may be based on a Home Performance Assessment (Comprehensive Home Performance Energy Audit) or Home Energy Rating (Comprehensive HERS Audit), in accordance with the criteria established by this Standard. A homeowner may elect to go through this process with or without a prior Home Energy Survey or Diagnostic Home Energy Survey.Regulations already in place in some cities for non-residential buildings already carry fines of $2000 a time for preventing bureaucrats from carrying out inspections. These will simply be expanded to cover all premises under the new climate bill.Under the RESNET standards for a home audit, the following procedures will become law under the climate bill.

704.1.2.3 The Home Energy Survey Professional shall request copies of utility bills or
written permission to obtain the energy use information from the utility company, and use
them to produce an estimate of generalized end-uses (base, heating, and cooling).
704.1.2.5. Minimum Procedures for an In-Home Energy Survey:
704.1.2.5.1.1 R-values of wall/ceiling/floor insulation
704.1.2.5.1.2 Square footage and approximate age of home
704.1.2.5.1.3 Type of windows: glazing type(s) and frame material(s)
704.1.2.5.1.4 Type, model number, and location of heating/cooling system(s)
704.1.2.5.1.5 Type of ductwork, location and R-value of duct insulation, and any
indications of previous duct sealing
704.1.2.5.1.6 Type of foundation is crawl, basement, or slab
704.1.2.5.1.7 Checklist of common air-leakage sites indicating likely opportunities
for leakage reduction
704.1.2.5.1.8 Estimated age and efficiency of major appliances such as
dishwashers, refrigerators, freezers, washing machines and dryers
704.1.2.5.1.9 Number and type of hardwired light fixtures and screw-in bulbs in
portable lamps suitable for energy efficient re-lamping
704.1.2.5.1.10 Visual indications of condensation
704.1.2.5.1.11 Presence and location of exhaust fans, and determination of whether
they are vented outdoors
704.1.2.5.1.12 Number and type of water fixtures (e.g. faucets, showerheads)
704.1.2.5.1.13 Presence and type(s) of combustion equipment; identification of
visually identifiable evidence of flame rollout, blocked chimney, and corroded or
missing vent connector.

As we have warned, the climate bill is nothing more than a feast for bloodthirsty government vampires, who are ready and waiting to suck off the fat hog of the American taxpayer once more.Ohio Republican Senator George Voinovich says it will take a miracle for the Senate to pass the controversial climate bill next week, meaning that the legislation won’t be in place before United Nations climate talks in Copenhagen in December.The Senator told Bloomberg News that the bill contains a lot of crap and that cutting CO2 emissions by 17 per cent before 2020 was an unobtainable goal.Voinovich’s prediction that the bill will fail is echoed by Senator James Inhofe of Oklahoma, who said that the “razor-thin vote in the House spells doom in the Senate.However, Senator John Kerry claims that the bill will pass the Senate next week but that there won’t be enough sway to approve a global treaty that commits other nations to follow the same regulations.

Stocks advance after mixed data; Jobs report looms By MADLEN READ and IEVA M. AUGSTUMS, AP Business Writers - Wed Jul 1, 5:41 pm ET

NEW YORK – Investors kicked off the stock market's third quarter with a moderate gain after getting some reassuring data on manufacturing and housing.The Dow Jones industrial average rose by 0.7 percent Wednesday, rebounding from the previous day's selloff that was triggered by a drop in consumer confidence. Other indexes made moderate advances as well.The buying was tempered by caution ahead of Thursday's June jobs report.That's going to be the big one, said Chris Johnson, president of Johnson Research Group.People are keeping their eye on the unemployment figure.The Labor Department is expected to report another uptick in the unemployment rate to 9.6 percent, according to economists surveyed by Thomson Reuters. Growing unemployment has been keeping investors nervous about consumer spending a major driver of growth.

Much of Wednesday's data was positive, including a report showing more stable manufacturing activity in the United States, and another indicating the fourth straight monthly rise in pending home sales. Stocks also got a boost from European markets, which rose following similarly upbeat manufacturing data in that region.Not all of the economic news was upbeat, however. Construction spending fell in May by more than the market expected, and according to the ADP National Employment Report, the private sector lost more jobs in June than anticipated.Some of Wednesday's bounce may simply have been due to stocks appearing cheaper following Tuesday's drop and investors looking to put money to work as the new quarter began.Some of the buying that wasn't done yesterday is being done today,said Richard E. Cripps, chief market strategist for Stifel Nicolaus, adding that he was surprised by Wednesday's upward move.There isn't a lot of convincing volume here to read too much into this.The Dow rose 57.06, or 0.7 percent, to 8,504.06. It climbed as high as 8,580.47 in earlier trading, but then pared its gains as the day went on.The Standard & Poor's 500 index rose 4.01, or 0.4 percent, to 923.33. The Nasdaq composite index rose 10.68, or 0.6 percent, to 1,845.72.Scott Fullman, director of derivatives investment strategy for WJB Capital Group, said the employment report — along with thin, pre-holiday trading volumes — could make for a volatile market Thursday. U.S. markets are closed Friday in observance of the July Fourth holiday.Nonetheless, investors remain optimistic that the economy will be in better shape by the end of the year.The belief is the worst is behind us,Fullman said.

About three stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to a lower-than-usual 4 billion shares, versus 4.9 billion shares the day before.Bond prices were little changed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was flat at 3.54 percent.In an upbeat earnings report, General Mills Inc. said its fiscal fourth-quarter profit nearly doubled. The maker of Cheerios cereal and Yoplait yogurt also offered earnings guidance for 2010 above analysts' expectations. Shares rose $2.16, or 3.9 percent, to $58.18.The biggest gainer among the 30 Dow stocks was Kraft Foods Inc., another food maker. Kraft rose $1.27, or 5 percent, to $26.61.Analysts say earnings reports coming in the next few weeks will largely determine which way the market heads in the third quarter. Investors are especially eager to hear what companies have to say about business prospects in the second half of the year. Markets have made a stunning recovery since hitting 12-year lows in early March. All the major indexes rose by double-digit percentage points in the second quarter, while the S&P 500 index and the Nasdaq composite index finished higher for the first six months of 2009. The major indexes have pulled back from multi-month highs in mid-June amid growing doubts about the strength of the economy's recovery. But Eric Ross, director of research at Canaccord Adams, said he doesn't think investors have fully appreciated how much the economy has stabilized.They are waiting for another leg down on the market, and I'm not sure we're going to see it,Ross said.There is too much money on the sidelines.

The Russell 2000 index of smaller companies rose 9.18, or 1.8 percent, to 517.46. The dollar was mostly lower against other major currencies, while gold prices rose. Light, sweet crude fell 58 cents to $69.31 a barrel on the New York Mercantile Exchange.Overseas, Japan's Nikkei stock average fell 0.2 percent. Britain's FTSE 100 rose 2.2 percent, Germany's DAX index rose 2 percent, and France's CAC-40 jumped 2.4 percent.

Meltdown 101: Shuttered stores sites still sell By EMILY FREDRIX, AP Business Writer – Wed Jul 1, 3:59 pm ET

Circuit City. Linens N Things. Bombay Co. They're all out of business, their stores shuttered, many employees laid off.But according to their old Web sites, they're all still selling, or planning to sell, the same stuff they always did everything from digital picture frames to leopard-print rugs.

How can this be? Didn't these companies shut down?

Typically, when a company goes out of business by way of bankruptcy, other companies buy its assets everything from cash registers and furniture to unsold merchandise. Also for sale are assets like the company's name, logo and Web site some experts say a name still has value even if the company has gone belly up.That's why a store chain's Web site can live on — and can even look largely unchanged — after the company has gone under.Here are some questions and answers about these phantom retailers.

Q: What are the old sites of out-of-business store chains doing?

A: Electronics retailer Circuit City, which closed down the last of its 567 stores in March, is one of the most prominent names that's gone under. Online retailer Systemax Inc. bought the Circuit City brand and Web site, http://www.circuitcity.com, in May. The company sells the same types of products that Circuit City did, like flat-panel televisions, computers and the Nintendo Wii, and says on its site it offers a wider selection than Circuit City had in its stores or online.The Linens N Things brand also is still selling. The home goods retailer went out of business this past winter and in February a company called LNT Acquisition LLC bought the Web site LNT.com and the Linens N Things brand name, according to the Web site. It still sells items once found in the chain's stores, like dishes and bedding, and has since added more premium brands, like Calvin Klein and Laura Ashley, according to the site.Gadget retailer The Sharper Image, which filed for bankruptcy protection in February 2008 and has closed all of its stores, lives on as a brand, not a retailer. Visitors to its site, http://www.sharperimage.com, are pointed to retailers like OfficeMax, Bed Bath & Beyond, and Macy's, where Sharper Image products — like massage chairs and weather clocks are sold.But this isn't the old Sharper Image company. The remaining assets including the name and online business — are owned by a joint venture formed between Hilco Consumer Capital, Gordon Brothers and Bluestar Alliance, while The Sharper Image brand name is licensed to manufacturers and distributors.

Q: So the company dies, but the name survives. How does this happen?

A: Like an unused cash register or unsold merchandise, companies buy up the names in bankruptcy, often for very little money. In the case of Circuit City, Systemax bought the fallen company's trademarks, domain names, customer lists and other information related to the online business for $14 million in cash plus a share of future revenue over 30 months.Companies in bankruptcy protection want to come up with as much money as they can, so they'll take whatever they can get for their assets.

Q: So it's good for the ailing retailers. But why would other companies want to buy up these brands?

A: The allure is all in the name and how consumers feel about the brand, said New York-based retail consultant Walter Loeb. Circuit City, for example, is a brand that's been around for decades and that people trust, he said.There is value in the brand,Loeb said.People are buying it up and hope to have customers come to them based on the recognition.Also, it's an easy, inexpensive way to get into the retail business, by operating solely online and having a set of customers who already know the name, he said.

Q: But if a company has gone bankrupt, aren't consumers leery of its brand name?

A: Even if a company suffered through the slumping sales and other woes that led to a bankruptcy, experts say some consumers will still have a connection to its brands and could decide to make a purchase again though they may not be repeat customers if the experience isn't what they're used to.

Q: Can consumers trust these new phantom retailers?

A: They need to do research and look at policies for returns and warranties, since they may not be the same as under the old ownership, said Edgar Dworsky, a consumer advocate and founder of ConsumerWorld.Org, based in Somerville, Mass. Companies aren't required to say on these sites how the ownership has changed, though he said they sometimes do in fine print, like a link on Circuit City's main page saying it is under new ownership. The bottom line? Don't assume it's business as usual. It's very easy for consumers to be misled,he said.They may have a very positive image of a famous brand that they've known for years and all of a sudden somebody else is really behind that brand, with or without the same quality and policies.

Q: How common is this, and will we see it happening more?

A: Take a look online and you'll see it's pretty common in this day of heavy Internet use, ailing retailers and consumers who are hesitant to spend. The trend has been going on for a few years. Famed department store chain Montgomery Ward went out of business in 2001, but five years later its brand name was brought back online by catalog marketer Direct Marketing Services Inc., where it sells tableware, tents and home decor.Also, a few defunct retailers like Mervyns LLC, Bombay Co. and KB Toys still maintain Web sites, mostly to collect customers' e-mail addresses for upcoming offers, events or other information. Some of the sites are hinting that they'll relaunch their businesses in some form.

Iran says Europe no longer qualified to conduct nuclear talks
LUCIA KUBOSOVA Today JULY 2,09 @ 09:30 CET

Iran says Europe is no longer qualified to hold nuclear talks due to its meddling with the post-election protests in the country, with Sweden, as the new EU presidency, calling up officials from the 27-member bloc to discuss the next diplomatic move. The EU has played a significant part in international efforts to make Tehran comply with the world's rules on nuclear power. Three EU states Germany, France, and the UK have been leading the negotiations along with the US, Russia and China.But Iran's military chief of staff Major-General Hassan Firouzabadi on Wednesday (I July) said that the alleged interference of Europeans in the riots following the June presidential election means the bloc has lost its qualification to hold nuclear talks.The statement came after Tehran's action against local employees of the UK embassy, accused by Iranians of meddling with the opposition protests.

Nine persons were detained over the weekend but most of them released on Monday and Wednesday. Two British staff members are still in jail.In a bid to protest the handling of the situation, other EU states are also considering withdrawing their ambassadors from Tehran, with Britain pressing hard for a joint gesture while Germany and Italy, as Iran's key trade partners, prefer to keep on speaking terms with the country.It is easier to get everyone in the EU to agree on tough language on Iran, as happened last weekend, rather than take tough action,one British diplomat said, according to the Financial Times. Just two days into its six-month chairmanship of the European Union, Sweden has called on member states' senior officials to discuss the issue on Thursday (2 July).Speaking to journalists at the official opening of the presidency, Swedish prime minister Fredrik Reinfeld made clear that Europe wants to support the democratic forces in Iran but also avoid isolating the country from the rest of the world.That's the balance we need to strike,he said.Tehran's political unrest broke out following the re-election of President Mahmoud Ahmadinejad on 12 June. Iranian supporters of his rival, opposition candidate Mir Hossein Mousavi, argue that the poll had been rigged and demand its complete re-run.Iran's police chief Esmaeil Ahmadi-Moghaddam said that 20 people were killed and more than 1,000 arrested in the wave of protests, AFP reported on Wednesday.

Iran reformists show fresh defiance against regime By WILLIAM J. KOLE, Associated Press Writer – Wed Jul 1, 2:00 pm ET

EDITOR'S NOTE: Iranian authorities have barred journalists for international news organizations from reporting on the streets and ordered them to stay in their offices. This report is based on the accounts of witnesses reached in Iran and official statements carried on Iranian media.In fresh displays of defiance, Iran's opposition leader told supporters Wednesday it's not yet too late to push for their rights, and he joined a reformist ex-president in condemning the regime for a post-election crackdown both said was tantamount to a coup.Iran's standoff with the West escalated with the European Union considering pulling out all 27 of its ambassadors in retaliation for the recent detentions of several local employees of the British Embassy in Tehran, despite Iranian claims that all but one had been released.

Embattled opposition leader Mir Hossein Mousavi said he considered Iran's cleric-led government illegitimate, and he demanded that it release all political prisoners and institute electoral reforms and press freedoms. Former President Mohammad Khatami, meanwhile, lashed out at what he termed a poisonous security situation in the wake of violent street protests.In boldly worded statements posted on their Web sites, Khatami accused Iran's leadership of a velvet coup against the people and democracy, and Mousavi said the government's crackdown on demonstrators was tantamount to a coup.
Wednesday's confrontations with the regime came as Iran's feared Basij militia accused Mousavi of undermining national security and asked a prosecutor to investigate his role in the protests.Khatami, an ally of Mousavi who contends the June 12 election was marred by widespread fraud and insists he was robbed of victory scorned the government for declaring incumbent President Mahmoud Ahmadinejad the winner in a landslide.Given what has been done and declared unilaterally, we must say that a velvet revolution has taken place against the people and democratic roots of the system,Khatami said.People's protests were suppressed, those who were required to protect people's rights humiliated the people ... yet it (the government) speaks of national reconciliation and peace.Mousavi said he was troubled by the bitter, widespread distrust of the people toward the declared election results and the government that caused it.It's not yet too late,said Mousavi, who has slipped from public view in recent days.It's our historic responsibility to continue our complaint and make efforts not to give up the rights of the people.Mousavi also condemned alleged attacks by security forces on college dormitories where blood was spilled and the youth were beaten,and he called for a return to a more honest political environment in the Islamic Republic.A majority of the people including me do not accept its political legitimacy,he said, adding:There's a danger ahead. A ruling system which relied on people's trust for 30 years cannot replace this trust with security forces overnight.

State television reported Wednesday that all but one of nine Iranian employees of the British Embassy in Tehran had been released, and the sole Iranian still in custody was being held on suspicion of playing a role in post-election protests. British Foreign Secretary David Miliband said he had information suggesting two local employees might still be in detention.Both Britain and the EU had condemned the detentions as harassment and intimidation,and Britain asked the 27-nation bloc to withdraw its ambassadors.The semiofficial Fars news agency, meanwhile, said the Basij known as supreme leader Ayatollah Ali Khamenei's street enforcers sent the chief prosecutor a letter accusing Mousavi of taking part in nine offenses against the state, including disturbing the nation's security,which carries a maximum penalty of 10 years' imprisonment.Iran's regime says 17 protesters and eight Basiji were killed in two weeks of unrest that followed the election.The powerful Guardian Council, Iran's top electoral oversight body, pronounced the election results valid earlier this week paving the way for Ahmadinejad to be sworn in later this month for a second four-year term. Whether he wanted to or not, Mr. Mousavi in many areas supervised or assisted in punishable acts,said the Basij letter, which also accused Mousavi of bringing pessimism into the public sphere.Fars also reported Wednesday that a total of 1,032 people were detained during post-election unrest. It cited police chief Ismail Ahmadi Moghaddam as saying most had been released and the rest have been sent to the public and revolutionary courts in Tehran.

In another sign of a tightening government clampdown on anyone challenging Ahmadinejad, a reformist political group said authorities banned a newspaper allied to presidential candidate Mehdi Karroubi after he denounced Iran's government as illegitimate because of claims of voting fraud.The closure of the daily Etemad-e-Melli, or National Confidence, was another move by officials seeking to block media and Web sites critical of Ahmadinejad. It's unclear how many people have been detained during the post-election riots and protests, but at least one group, the Paris-based International Federation of Human Rights, claimed at least 2,000 arrests have been made. The figures could not be independently verified because of tight media restrictions.State-run Press TV reported Wednesday that a grenade was found in a trash can inside a women's bathroom at a mausoleum in Tehran, and it cited an official as saying the incident was intended to invoke fear in the minds of the Iranians who participated in the disputed election.Moghaddam, the police chief, said Iranian intelligence officials were seeking Dr. Arash Hejazi, an Iranian doctor who tried to save Neda Agha Soltan after she was fatally shot on the sidelines of one of the demonstrations.Hejazi, who has since fled to London, told the BBC last week that Soltan who became an opposition icon after video of her bleeding to death was circulated worldwide — apparently was shot by a member of the volunteer Basij militia. He said protesters spotted an armed member of the militia on a motorcycle, and stopped and disarmed him.But Moghaddam described the circumstances as a fabrication that had nothing to do with the street riots. He did not elaborate on why officials want Hejazi, but the regime repeatedly has implicated protesters and even foreign agents in Soltan's death.White House press secretary Robert Gibbs dismissed Iranian assertions that Soltan's death may have been staged, calling it part of an ongoing campaign of misinformation about what's going on in the country. Kole reported from Cairo. Associated Press Writers Ali Akbar Dareini in Tehran, Iran, and Shaya Tayefe Mohajer in Cairo contributed to this report.

EU considers pulling ambassadors from Iran By ROBERT WIELAARD, Associated Press Writer – Wed Jul 1, 12:20 pm ET

STOCKHOLM – The European Union was preparing Wednesday to debate a British request to pull ambassadors of all 27 EU nations from Iran in protest over the detention of Iranian staff at the British Embassy in Tehran.The detentions last week cranked up Iran's standoff with the West over its bloody crackdown on opposition protesters who disputed the results of last month's presidential election.In a further sign of deteriorating ties, Iran said Wednesday the EU had disqualified itself from talks over Tehran's nuclear program because of its interference in the post-election unrest. Iran accuses the EU of supporting the anti-government rallies.The EU has totally lost the competence and qualifications needed for holding any kind of talks with Iran,Iran's chief of staff, Gen. Hasan Firouzabadi, was quoted as saying by the semi-official Fars News Agency.Iranian state television on Wednesday said Tehran released all but one of the British Embassy employees. Neither Britain nor the EU immediately responded to word of the releases — and it was not clear how they would affect discussions over withdrawing envoys.Britain said nine of its local employees initially were arrested last week, and five were released on Monday. Both Britain and the European Union had condemned the detentions as harassment and intimidation.The EU struggled Wednesday for a measured response to the repression that has followed Iran's disputed elections, concerned Tehran could react by cracking down even harder on reformers, demonstrators and journalists.

Senior European Union officials were to debate Britain's pullout request on Thursday.

But there has been little enthusiasm for the proposal in some capitals, for fear it would only isolate Iran even more, said an EU diplomat who asked not to be named because he could not discuss the issue publicly.On the day his government assumed the EU's rotating presidency, Swedish Prime Minister Fredrik Reinfeldt said he hoped Iran's leaders will make the right choice in avoiding confrontation with the international community.He announced no sanctions of any kind against Iran after talks with the European Commission, the Brussels-based EU executive on Wednesday.

Speaking to reporters, Reinfeldt said Europe and others must take care not to become an excuse for use of violence or use of repression inside Iran.The dilemma is how to back reforms in Iran and at the same time not (become) an excuse for use of violence or use of repression inside Iran, said Reinfeldt.That is the balance we need to strike in Europe and also other parts of the world.Reinfeldt also urged Iran to introduce reforms rather than create some conflicts with the 27-nation European Union, the United States and others.EU nations have increased criticism of Iran's crackdown on protesters who allege the June 12 presidential vote was rigged in favor of President Mahmoud Ahmadinejad.Reinfeldt said the EU was closing ranks with Britain denouncing the detention by Iran of nine local British Embassy employees in Tehran.
Sweden assumed the EU's presidency on Wednesday, and will hold it for six months.AP Writer Constant Brand in Brussels contributed reporting to this article.

NUCLEAR WEAPONS WILL BE USED.

PSALMS 97:3
3 A fire goeth before him, and burneth up his enemies round about.

REVELATION 14:18-20
18 And another angel came out from the altar, which had power over fire; and cried with a loud cry to him that had the sharp sickle, saying, Thrust in thy sharp sickle, and gather the clusters of the vine of the earth; for her grapes are fully ripe.
19 And the angel thrust in his sickle into the earth, and gathered the vine of the earth, and cast it into the great winepress of the wrath of God.
20 And the winepress was trodden without the city,(JERUSALEM) and blood came out of the winepress, even unto the horse bridles, by the space of a thousand and six hundred furlongs.(200 MILES) (THE SIZE OF ISRAEL)

ISAIAH 66:15-18
15 For, behold, the LORD will come with fire, and with his chariots like a whirlwind, to render his anger with fury, and his rebuke with flames of fire.
16 For by fire and by his sword will the LORD plead with all flesh: and the slain of the LORD shall be many.
17 They that sanctify themselves, and purify themselves in the gardens behind one tree in the midst, eating swine's flesh, and the abomination, and the mouse, shall be consumed together, saith the LORD.
18 For I know their works and their thoughts: it shall come, that I will gather all nations and tongues; and they shall come, and see my glory.

ISAIAH 26:21
21 For, behold, the LORD cometh out of his place to punish the inhabitants of the earth for their iniquity: the earth also shall disclose her blood, and shall no more cover her slain.(WW3,1/2 earths population die).

ISAIAH 13:6-13 KJV
6 Howl ye; for the day of the LORD is at hand; it shall come as a destruction from the Almighty.
7 Therefore shall all hands be faint, and every man's heart shall melt:(FROM FRIGHT)
8 And they shall be afraid: pangs and sorrows shall take hold of them; they shall be in pain as a woman that travaileth: they shall be amazed one at another; their faces shall be as flames.
9 Behold, the day of the LORD cometh, cruel both with wrath and fierce anger, to lay the land desolate: and he shall destroy the sinners thereof out of it.
10 For the stars of heaven and the constellations thereof shall not give their light: the sun shall be darkened in his going forth, and the moon shall not cause her light to shine.
11 And I will punish the world for their evil, and the wicked for their iniquity; and I will cause the arrogancy of the proud to cease, and will lay low the haughtiness of the terrible.
12 I will make a man more precious than fine gold; even a man than the golden wedge of Ophir.
13 Therefore I will shake the heavens, and the earth shall remove out of her place, in the wrath of the LORD of hosts, and in the day of his fierce anger.

ISAIAH 24:17-23 KJV
17 Fear, and the pit, and the snare, are upon thee, O inhabitant of the earth.
18 And it shall come to pass, that he who fleeth from the noise of the fear shall fall into the pit; and he that cometh up out of the midst of the pit shall be taken in the snare: for the windows from on high are open, and the foundations of the earth do shake.
19 The earth is utterly broken down, the earth is clean dissolved, the earth is moved exceedingly.
20 The earth shall reel to and fro like a drunkard, and shall be removed like a cottage; and the transgression thereof shall be heavy upon it; and it shall fall, and not rise again.
21 And it shall come to pass in that day, that the LORD shall punish the host of the high ones that are on high, and the kings of the earth upon the earth.
22 And they shall be gathered together, as prisoners are gathered in the pit, and shall be shut up in the prison, and after many days shall they be visited.
23 Then the moon shall be confounded, and the sun ashamed, when the LORD of hosts shall reign in mount Zion, and in Jerusalem, and before his ancients gloriously.

2 TIMOTHY 3:1
1 This know also, that in the last days perilous (DANGEROUS) times shall come.

JOEL 2:3,30
3 A fire devoureth before them; and behind them a flame burneth: the land is as the garden of Eden before them, and behind them a desolate wilderness; yea, and nothing shall escape them.
30 And I will shew wonders in the heavens and in the earth, blood, and fire, and pillars of smoke.

ZECHARIAH 14:12-13
12 And this shall be the plague wherewith the LORD will smite all the people that have fought against Jerusalem; Their flesh shall consume away while they stand upon their feet, and their eyes shall consume away in their holes, and their tongue shall consume away in their mouth.
13 And it shall come to pass in that day, that a great tumult from the LORD shall be among them; and they shall lay hold every one on the hand of his neighbour, and his hand shall rise up against the hand of his neighbour.

EZEKIEL 20:47
47 And say to the forest of the south, Hear the word of the LORD; Thus saith the Lord GOD; Behold, I will kindle a fire in thee, and it shall devour every green tree in thee, and every dry tree: the flaming flame shall not be quenched, and all faces from the south to the north shall be burned therein.

ZEPHANIAH 1:18
18 Neither their silver nor their gold shall be able to deliver them in the day of the LORD'S wrath; but the whole land shall be devoured by the fire of his jealousy: for he shall make even a speedy riddance of all them that dwell in the land.

MALACHI 4:1
1 For, behold, the day cometh, that shall burn as an oven; and all the proud, yea, and all that do wickedly, shall be stubble: and the day that cometh shall burn them up, saith the LORD of hosts, that it shall leave them neither root nor branch.

REVELATION 8:7
7 The first angel sounded, and there followed hail and fire mingled with blood, and they were cast upon the earth: and the third part of trees was burnt up, and all green grass was burnt up.

REVELATION 9:18
18 By these three was the third part of men killed, by the fire, and by the smoke, and by the brimstone, which issued out of their mouths.

HALF OF EARTHS POPULATION DIE DURING THE 7 YR TRIBULATION.(THESE VERSES ARE JUDGEMENT SCRIPTURES NOT RAPTURE SCRIPTURES)

LUKE 17:34-37
34 I tell you, in that night there shall be two men in one bed; the one shall be taken, and the other shall be left.
35 Two women shall be grinding together; the one shall be taken, and the other left.
36 Two men shall be in the field; the one shall be taken, and the other left.
37 And they answered and said unto him, Where, Lord? And he said unto them, Wheresoever the body is, thither will the eagles be gathered together.(Christians have new bodies,this is the people against Jerusalem during the 7 yr treaty)(Christians bodies are not being eaten by the birds).

MATTHEW 24:37-51
37 But as the days of Noe were, so shall also the coming of the Son of man be.
38 For as in the days that were before the flood they were eating and drinking, marrying and giving in marriage, until the day that Noe entered into the ark,
39 And knew not until the flood came, and took them all away; so shall also the coming of the Son of man be.
40 Then shall two be in the field; the one shall be taken, and the other left.
41 Two women shall be grinding at the mill; the one shall be taken, and the other left.
42 Watch therefore: for ye know not what hour your Lord doth come.
43 But know this, that if the goodman of the house had known in what watch the thief would come, he would have watched, and would not have suffered his house to be broken up.
44 Therefore be ye also ready: for in such an hour as ye think not the Son of man cometh.
45 Who then is a faithful and wise servant, whom his lord hath made ruler over his household, to give them meat in due season?
46 Blessed is that servant, whom his lord when he cometh shall find so doing.
47 Verily I say unto you, That he shall make him ruler over all his goods.
48 But and if that evil servant shall say in his heart, My lord delayeth his coming;
49 And shall begin to smite his fellowservants, and to eat and drink with the drunken;
50 The lord of that servant shall come in a day when he looketh not for him, and in an hour that he is not aware of,
51 And shall cut him asunder, and appoint him his portion with the hypocrites: there shall be weeping and gnashing of teeth.

OBAMAS PLAYING RIGHT INTO RUSSIAS HANDS HERE.THIS SCRIPTURES SAYS NUKES WILL BE USED OBAMA WILL BE DECIEVED TO GETTING RID OF AMERICAS NUKES.NO WONDER RUSSIA WILL DO A SNEAK EMP ,NUKE ATTACK IN THE FUTURE ON AMERICA.

Hopes for nuclear breakthrough on Obama Moscow trip By Michael Stott – Wed Jul 1, 6:16 pm ET

MOSCOW (Reuters) – Hopes are rising on both sides that President Barack Obama's visit to Moscow next week will produce a breakthrough in talks on cutting U.S. and Russian nuclear weapons and on helping Washington in Afghanistan.Officially, neither side has made an announcement but diplomats believe Obama will agree with President Dmitry Medvedev on the outline of a deal to reduce the stocks of deployed nuclear warheads to below 1,700 on each side.We are confident that we will secure an agreement committing both sides to cutting warheads to fewer than 1,700,one person close to the talks said.Obama and Medvedev gave the go-ahead to talks on a new strategic arms treaty to replace START-1, which expires on December 5, when they met for the first time in London in April.Sergei Ryabkov, a Russian deputy foreign minister, said on Tuesday that progress in the arms talks had been beyond what was expected when we started.By December, Ryabkov told the state-run RIA news agency, he expected a solid document with a range of measures for testing and exchange of information...and real reductions in strategic offensive weapons.Estimates of current nuclear stockpiles differ but according to the U.S.-based Bulletin of the Atomic Scientists at the start of 2009 the United States had around 2,200 operationally deployed strategic nuclear warheads and Russia around 2,790.Washington is also optimistic of securing Moscow's agreement to ship lethal military supplies to its troops in Afghanistan across Russian territory an urgent priority as existing supply lines across Pakistan become less safe.Diplomats say the two agreements are likely to be the main fruits of Obama's July 6-8 trip to Russia and will be touted as evidence that both sides want to press the reset button to use Washington's phrase on their rocky relations of recent years.Relations between Russia and the United States hit their lowest point since the end of the Cold War last summer over a war in U.S. ally and former Soviet republic Georgia.Russia's decision to send troops and amour deep into neighboring Georgia in response to Tbilisi's attack on a Russian-supported rebel region angered Washington and led to a suspension of NATO cooperation with Moscow now lifted.Both sides are now trying to put that behind them to make progress on nuclear disarmament and other areas such as strengthening efforts to halt the spread of nuclear weapons where they see a chance of relatively quick agreement.

HOST OF DIFFERENCES PERSIST

But analysts warn that any prospective deals could yet be torpedoed by a host of differences between Moscow and Washington.The two sides are far apart on U.S. plans to station an anti-missile system in Poland and the Czech Republic, something Russia says threatens its security.In Washington, Michael McFaul, Obama's adviser on Russia, said the president would make clear that Washington sees enhanced missile defense as protection against real threats like Iran, not against Russia, and he would seek Moscow's cooperation in the program.Moscow also dislikes U.S. aspirations to bring more former Soviet republics into NATO, an alliance Russia views as a hostile Cold War relic.Russia's ruling elite still smarts at what it sees as U.S. moves to take advantage of its weakness in the chaos that followed the collapse of the Soviet Union and is determined to bargain hard, despite a deep economic recession and continued problems in equipping and training its military. The biggest deliverable from the summit will be an agreement on the parameters of a START treaty,said Dmitry Trenin, head of the Moscow Carnegie Center think-tank, during an online conference ahead of Obama's visit. But START is not a big achievement. It will regulate adversarial relations but on its own it will not bring U.S.-Russia relations to a new level.

Moscow and Washington have already agreed in a 2002 treaty to cut their nuclear arsenals to 1,700-2,200 deployed nuclear warheads by 2012, so any further reduction agreed in principle next week is likely to be relatively small. Asked if leaders would agree at the Moscow summit to cuts to as low as 1,500 warheads each, McFaul said it would be way too early to announce specific levels. My guess is we'll get around to concrete numbers right toward the end of negotiating a treaty,he told reporters in Washington. Underlying all the talking next week will also be a gulf in expectations and attitudes between a popular U.S. administration with a big electoral mandate and a fearful, insular Kremlin leadership who see threats all around them.
(Additional reporting by Matt Spetalnick, editing by Vicki Allen)

NKorea likely to fire short-range missiles: report JULY 1,09

SEOUL (AFP) – North Korea is highly likely to fire short-range missiles off its east coast after issuing a fresh warning to shipping to stay clear of some areas, according to a South Korean newspaper.It is highly likely that the North will launch missiles from bases in the eastern provinces of Kangwon and South Hamkyong, the JoongAng Ilbo quoted an intelligence source as saying.The communist state has responded defiantly to UN condemnation of its long-range rocket launch in April and of its May nuclear test, vowing to bolster its defences.The source said the North is likely to fire Scud-B missiles with a range of 340 kilometres (212 miles), or Rodongs whose 1,300-km range would likely be shortened to some 400 km for this round of testing.Ground-to-ship missiles with a range of 140 km may also be fired, the source said. Defence Ministry officials declined to comment.A military official quoted by Yonhap news agency said there are no signs of preparations to fire mid-range missiles in the near future.Vehicles with movable launchers have not been seen at a missile base in Anbyon county, the unidentified military official was quoted as saying.They are carrying out the usual command post exercises at missile bases but we're watching closely as they can fire short-range missiles at any moment,the official said.The North issued a fresh warning to Japan on Wednesday to stay clear of some coastal areas during military exercises until July 11, the Japan Coast Guard said.It issued navigation bans for 10 areas in the Sea of Japan (East Sea) and the Yellow Sea, citing military gunfire and bombardment training.

US defence officials also said in early June that the North appears to have transported a long-range missile to a new base in the west of the country in preparation for a possible launch.But there have been no recent reports of preparations for a launch there.Pyongyang tested long-range missiles in 1998, in 2006 and on April 5 this year when it fired a Taepodong-2 to put a satellite into orbit.
The US and its allies said the real purpose of the launch was to test a ballistic missile theoretically capable of reaching Alaska or Hawaii.US Defense Secretary Robert Gates said last month the military has beefed up its defenses in Hawaii as a precaution.

North Korea test-fires 4 short-range missiles By JAE-SOON CHANG, Associated Press Writer JULY 2,09

SEOUL, South Korea – North Korea test-fired four short-range missiles Thursday, South Korea's Defense Ministry said, a move that aggravates already high tensions following Pyongyang's recent nuclear test and U.N. sanctions imposed as punishment.Two ground-to-ship missiles were fired from the eastern coastal city of Wonsan on Thursday afternoon, a ministry official said on condition of anonymity citing department policy.The North also fired a third missile later from the east coast, but the exact site and the type of a rocket was not immediately known, the official said. Another ministry official also speaking on condition of anonymity citing department policy said the North later fired a fourth missile, though she provided no details.Yonhap news agency, citing an unnamed military official, reported all four missiles flew about 60 miles (100 kilometers) and identified them as KN-01 missiles with a range of up to 100 miles (160 kilometers).North Korea had earlier called for a no-sail zone in waters off its east coast through July 10 for military drills. That designation was viewed as a prelude to such missile tests.The launches came as North Korea's relations with the United States, South Korea and other countries were already severely strained after its May 25 underground nuclear test and a series of missile firings. The U.N. Security Council adopted a tough sanctions resolution last month to punish the communist regime.We had expected that they will fire short-range missiles at any time,South Korea's Foreign Minister Yu Myung-hwan told The Associated Press at a reception held at the U.S. ambassador's residence to mark Independence Day on July 4, which falls this weekend. It's not a good sign because they are demonstrating their military power.In Tokyo, Japanese Prime Minister Taro Aso called the missile launches provocative acts and urged the North to refrain.

Russian Foreign Ministry spokesman Andrei Nesterenko also expressed concern over the North's missile launches, saying, We have always asked North Koreans to abstain from actions that may exacerbate the situation.The first launch came just before the U.S. ambassador's reception started in the late afternoon, while the second and third came as it was under way, based on times provided by the Defense Ministry. The timing for the fourth launch was not immediately available.While it was not clear if the firings were meant to coincide with the event, the North did launch a long-range missile in 2006 in the early morning hours of July 5, which coincided with the July 4 holiday in the United States.The United States is seeking Chinese support to enforce U.N. sanctions imposed on the North to punish it over the nuclear test. Philip Goldberg, in charge of coordinating the implementation of sanctions against the North, told reporters in Beijing that he had very good conversations with Chinese officials Thursday, though not give details of the talks .Separately, China's top nuclear envoy, Wu Dawei, left Thursday for Russia as part of diplomatic efforts to push North Korea back to the stalled nuclear disarmament talks, according to the Chinese Foreign Ministry.The trip will also take Wu to the U.S., Japan, and South Korea, the ministry said. The five nations have engaged in the talks since 2003 in an effort to persuade the North abandon its nuclear programs in return for economic aid and other concessions.The purpose of Wu Dawei's visit is to exchange views with relevant parties on the nuclear issues on the Korean peninsula, Chinese Foreign Ministry spokesman Qin Gang said in a regular press briefing.Earlier in the day, Seoul's JoongAng Ilbo newspaper reported that North Korea could fire a barrage of missiles in coming days, including ballistic Scud or Rodong rockets that the North is banned from testing under U.N. resolutions.North Korea has also threatened to test-fire an intercontinental ballistic missile. Last month, a Japanese newspaper reported that the North could test-fire a long-range missile toward Hawaii as early as July 4. The U.S. has increased defenses around the island state.But Seoul's YTN television news network said Thursday that there are no signs of an imminent long-range missile launch.The reported missile moves came after a North Korean ship — suspected of possibly carrying illicit weapons — changed course and was heading back the way it came after remaining under U.S. surveillance for more than a week. The North Korean ship is the first vessel monitored under the new U.N. sanctions that seek to clamp down on Pyongyang's trading of banned arms and weapons-related material by requiring U.N. member states to request inspections of ships suspected of carrying prohibited cargo.The North has said it would consider the interception of its ships a declaration of war.Associated Press writers Kwang-tae Kim, Hyung-jin Kim and Kelly Olsen in Seoul, Alexa Olesen in Beijing, Mari Yamaguchi in Tokyo and Mike Eckel in Moscow contributed to this report.

North Korea ups tension with short-range missiles By Jack Kim and Miyoung Kim – 1 hr JULY 2,09

SEOUL (Reuters) – North Korea test-fired four short-range missiles on Thursday, further stoking tension in the region that was already high due to Pyongyang's nuclear test and threats to boost its nuclear arsenal in response to UN sanctions.

The North, which often fires short-range missiles as part of military drills and usually times the launches for periods of diplomatic friction, was hit with UN sanctions following its May 25 nuclear test.The salvo began with two surface-to-ship missiles fired off North Korea's east coast between 5:20 p.m and 6 p.m. (0820-0900 GMT) that flew about 100 km (60 miles) and splashed into the sea, a South Korean defense official said.A third short-range missile was fired around two hours later, the defense ministry said, and South Korea's Yonhap news agency, citing officials in Seoul, later said a fourth had been fired.North Korea last month warned shipping to keep away from a maritime zone extending 110 km off its east coast between June 25 and July 10, saying it was conducting a military drill.This activity is not unexpected,said U.S. Pentagon spokesman Bryan Whitman.North Korea continues to develop and pursue missile technologies and the United States continues to remain concerned about not only their missile activities but their proliferation activities and their nuclear program.A South Korean daily said that the secretive North may also test fire mid-range missiles, viewed by the South, the United States and others as a more serious act, in a matter of days.Japan, a party to currently suspended six-nation talks aimed at coaxing the isolated North to give up its nuclear program in return for aid and greater diplomatic recognition, was quick to condemn Pyongyang's latest action.We have often warned that such a provocative act is not beneficial for North Korea's national interest,Kyodo News Agency quoted Japanese Prime Minister Taro Aso as telling reporters.The short-range missile launches came after regional markets had closed for the day, but East Asian investors have grown used to North Korea's saber-rattling and tend not to be fazed.Analysts say they would likely panic only if there was military conflict on a peninsula, where 2 million troops face each other across one of the world's most heavily armed borders.

TIGHTENING SANCTIONS

Washington said this week it had tightened its crackdown on firms linked to the North's lucrative proliferation of missiles, a major source of cash for the destitute state, and has sent the U.S. point man for sanctions to Asia for discussions.
Enforcement of the sanctions, aimed at halting its trade in arms, would depend heavily on China, the North's biggest benefactor and trade partner, analysts said.

China said on Thursday it was sending its envoy to the six-party talks to South Korea, Japan, Russia and the United States. North Korea, the sixth party, was not on the itinerary.China has consistently advocated dialogue and consultation, and achieving denuclearization of the Korean peninsula through the six-party talks process,Foreign Ministry spokesman Qin Gang told a news briefing.Earlier the JoongAng Ilbo daily quoted an intelligence source as saying the North was likely to fire medium or short range missiles from its east coast in early July that could include Scuds with a range of about 340 km (210 miles) or Rodong missiles with a range of up to 1,000 km (620 miles).North Korea fired a barrage of short-range missiles following its May nuclear test, which experts said put the state closer to having a working nuclear bomb.It launched a rocket in April in what was widely seen as a disguised long-range missile test that violated U.N. resolutions banning it from ballistic missile launches.Philip Goldberg, the U.S. envoy who coordinates sanctions against the North, has been in China to enlist Beijing's help in getting tough with North Korea and said he had had good discussions with his Chinese counterparts. We want all the various aspects of the resolution to work,he told reporters after a day of meetings, adding that this included financial sanctions.

He will be in Malaysia on Sunday before heading back to Washington on Monday.

It was not immediately clear why he was visiting Malaysia, although earlier this week Japanese media reported police in Japan had arrested three people on suspicion of attempting to export equipment that could be used in weapons production to Myanmar via Malaysia and suspected a link to North Korea.South Korean Foreign Minister Yu Myung-hwan said he was seeking a meeting of the foreign ministers of the six countries, including the North, on the sidelines of a regional security forum on July 23 in Thailand.Officials said the North's military grandstanding is likely related to moves by its leadership to begin readying leader Kim Jong-il's youngest son as a future heir by consolidating the 67-year-old leader's power base.(Additional reporting by Chris Buckley and Emma Graham-Harrison in Beijing, Kim Yeon-hee and Jon Herskovitz in Seoul, Yoko Kubota in Tokyo and Andrew Gray in Washington; Editing by Jeremy Laurence and Alex Richardson)

US ready for NKorean missile: military commander JULY 2,09

WASHINGTON (AFP) – The United States is ready to intercept any North Korean long-range missile, a top US military commander said Thursday, as Pyongyang further tested international patience with fresh launches.The nation has a very, very credible ballistic-missile defense capability, the commander of US Northern Command, General Victor Renuart, told The Washington Times.Our ground-based interceptors in Alaska and California ... give me a capability that if we really are threatened by a long-range ICBM (intercontinental ballistic missile) that I've got high confidence that I could interdict that flight before it caused huge damage to any US territory.Washington has said it is not ruling out the possibility of a North Korean long-range missile launch toward Hawaii on or around July 4, the US Independence Day, although the Pentagon has expressed doubts about such a scenario.But Renuart, commander of US NORTHCOM and the missile launch-monitoring US-Canada North American Aerospace Defense Command (NORAD), warned we ought to assume there might be one... and continue to be prepared and ready.
His comments came as South Korean military officials said Pyongyang test-fired four short-range missiles Thursday, further fueling tensions sparked by the North's nuclear standoff with the international community.

The launches were not unexpected,said Bryan Whitman, a Pentagon spokesman.North Korea is looking for attention,added a US defense official who requested anonymity.It was the first military action by the hardline communist state since the United Nations on June 12 imposed tougher sanctions for its May 25 nuclear test.President Barack Obama had assured in late June that the United States is fully prepared for a potential North Korean missile launch toward US territory.In addition to long-range interceptors in Alaska and California, the United States also has ground- and sea-based defense systems in the Asia Pacific, including ground-based Patriot anti-missile defenses in South Korea, and US Navy Aegis system missile-defense ships deployed to waters close to Japan.Thursday's North Korean missile launches came as a US delegation met Chinese officials in Beijing for talks on boosting UN sanctions imposed in June after the Stalinist state's May nuclear test.

Barroso stalemate threatens to distract EU from real problems
HONOR MAHONY Today JULY 2,09 @ 17:14 CET

EUOBSERVER / BRUSSELS – With parliament looking increasingly likely to postpone a July vote on the nomination of the next commission president, there is a risk of having a lameduck executive for a further three to four months. The Socialists, Liberals, Greens and far-left have all indicated that they think a mid-July vote on whether Jose Manuel Barroso should be president for a second time is too soon.It is quite clear there is not a majority for voting in favour,said Socialist leader Martin Schulz on Thursday (2 July). Guy Verhofstadt, leader of the Liberals has, unlike Mr Schulz, not explicitly ruled out a vote in July, but said substantive issues had to be discussed first.Both groups want to secure certain policy points in the Barroso programme for the next five years and both want prominent dossiers for their European Commissioners.The centre-right EPP is in favour of a July vote but it will be difficult to find a majority without looking to the eurosceptics or pressing ahead without the socialists' support, both moves that would undermine Mr Barroso's credibility.Member states last month gave Mr Barroso political support for having the job a second time. They agreed that they would turn this support into formal legal backing after consulting with parliament and getting assurances that he would be accepted in a 15 July vote.But anti-Barroso MEPs have introduced a Catch-22 element to the situation by saying they will not even begin discussing his candidature until he is legally nominated. There is now little time left for manoeuvre. The political group leaders will meet the Swedish EU presidency on Monday (6 July) before themselves deciding three days later whether to put the Barroso vote on the agenda in mid-July.

When in autumn?

Swedish sources indicated to EUobserver that it would not be considered a disaster if a vote was postponed until September.However, the fear is that there may then be an attempt to postpone the vote until October, after the Irish have voted on the Lisbon Treaty and when it is clear whether these rules will come into place.Mr Schulz, pressed on Thursday to say whether he would push for an October vote, would only say that he is first concentrating on making sure there is not a vote in July. The Greens have already said they want the vote to take place after Ireland's referendum.An October vote would throw everything into the air including Mr Barroso's candidature as several other posts could also be up for grabs, including the EU foreign minister and EU president (created by the Lisbon Treaty).

New names

Agreement on these posts would be part of an overall deal and Mr Barroso could fall by the wayside in the haggling, which includes a balance of country size, political hue and geography.New names are already being floated for the job in Brussels, a city that thrives on political gossip. They include Dutch leader Jan-Peter Balkenende, Jean-Claude Juncker of Luxembourg and former Austrian chancellor Wolfgang Schuessel. There is also speculation that Paris could push to have a woman take the post for the first time in the form of Christine Lagarde, currently the finance minister.For Sweden, an October vote would severely undermine its focus on economic and climate change issues as member states would rather be concentrating on how to get particular names into posts and their job descriptions.It would also not have a focussed commission president as a partner but rather a distracted one looking out for his future job prospects.