Science or Intellectual Fraud?
Research for Online Investors

by John Dalt

7/14/09

John Holdren is Oh! Bama’s Science Czar, he has a distinguished bio, all the scarier.  John Heinz would roll over in his grave that his money is used to fund extremists such as Mr. Holdren with an endowed chair at Harvard.  Shame on Harvard.  He has been referred to as Oh! Bama’s Dr. Strangelove.

In a 1977 book, he co-authored titled “Eco Science” Holdren offered his view on population control.  He advocated forced abortions, forced sterilization, birth control administered through the public water supply, and an international police force allowed to operate inside the U.S.  You can watch his presentation on climate change.

Oh! Bama said, “"...the truth is that promoting science isn’t just about providing resources—it’s about protecting free and open inquiry. It’s about ensuring that facts and evidence are never twisted or obscured by politics or ideology. It’s about listening to what our scientists have to say, even when it’s inconvenient—especially when it’s inconvenient. Because the highest purpose of science is the search for knowledge, truth and a greater understanding of the world around us. That will be my goal as President of the United States”

I am reminded of the challenge to global warming advocates by Michael Crichton, before he died.  He asked, “show me the science.”  That seems like a simple request of a trained scientist.  All the great world improvers point to their favorite symptoms that occur in nature, and assign responsibility, but why not just “show us the science.”  It would be good to see it before Oh! Bama and Congress commit this country to economic disarmament.

CIT is in the news again today with a rumored late night meeting in Washington to rescue the finance company.  No official release of news, yet.  CIT currently trades at $1.60 down from a 52-week high of $13.00  CIT hit a low of $1.08 yesterday as bankruptcy news took all the air out of the room.  Arbitrage with the government involved might be a dangerous game.  They have the ability to make up new rules, ask bondholders of Chrysler.

The U.S. Treasury wants Bank of America (BAC) to pay $4 billion for negotiating a rescue agreement around the Merrill Lynch deal.  It was never signed or used, but Uncle Sugar thinks they should be paid $4 billion for implied U.S. backing on the $118 billion acquisition.

Our story last week about Google taking on Mr. Softie is taking another turn this week.  MSFT is fighting back.  They announced moving their Office software online, including plans for a ‘cloud’ operating system.  MSFT has the muscle to block any upstarts in their business; they just have to do it profitably.  This is a surprising move, as once the software is online the revenue stream will be harder to maintain.  There has to be a cost for the user, but how will MSFT collect it?

The precious metals market is concerned over the International Monetary Fund’s authorization to sell 400 metric tons of gold.  It is unclear if, or when, this sale will take place.   I looked up the IMF website to understand their gold positions.

The gold they would sell has been acquired since 1978, after the collapse of the Bretton Woods agreement.  The rest of their gold is held, and may be repurchased by the member countries that contributed the gold in the first place.  In essence, it belongs to them, at $35 per ounce, when 85% of the voting members agree to return the gold to member countries.  You can read about it, if interested.  It is hard to get excited about reading doublespeak.

Who are the ten largest holders of gold reserves in the World?

          Owner        Metric Tons             Share of foreign reserves

1.    U.S.                8133.5                        78.3%

2.    Germany        3412.6                        69.5%

3.    IMF                 3217.3

4.    Italy                 2451.8                        66.5%

5.    France           2450.7                        72.6%

6.    GLD etf          1120.6

7.    China             1054.0                        1.8%

8.    Switzerland   1040.1                        37.1%

9.    Japan             765.2                          2.1%

10. Netherlands  612.5                          61.4%

The top 10 holders control 24,258.3 tonnes of gold, or over 855 million ounces.  Worth over 804 billion, about 15.4% of all the gold ever mined!

The market worked a little higher today, on low volume.  Goldman Sachs reported second quarter earnings of $4.58 per share, expected earnings were $3.48.  The market should have rallied on this good news, it did not.  This causes concern for the next few days as investors struggle.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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