International Forecaster Weekly

Congressmen Under Investigation

congressmen under investigation, Low grades for Bush, the imagined war on terror, and the suspension of liberties to come, Phoenix home sales way up, The republican debate sought to sideline Ron Paul, California real estate dreams drying up, Bernanke comments on the Real Estate market  on Mars

Bob Chapman | May 21, 2007

At least 11 members of Congress are under investigation as well as 10 former members of our last Congress.

First there is Rep. John Doolittle (R-CA) for accepting large contributions from convict Jack Abramoff and for his wife receiving commission on campaign contributions.

Tom Feeney (R-FL) who received campaign contributions from Abramoff as well as lavish trips. He is also being pursued for his homosexual pursuit of congressional pages.

Rep. Gary Miller (R-CA) for his real estate transactions. He sold land in Monrovia, California and made a $10 million profit. Instead of paying a 31% tax he claims he was forced to sell under eminent domain, which Monrovia and other buyers of other properties he sold, said was not the case. He claims capital gains tax rates.

Rep. Rick Renzi (R-AZ) is subject to two Justice Department investigations. The first is a land swap deal. The other is ManTech, Int., a supplier of mercenaries and one of Renzi’s largest contributors, which currently employs his father, and has more than $450 million in contracts at Fort Huachuca Army Base. The FBI raided Renzi’s wife’s insurance business.

Michael Aaron Lay, is under indictment for illegally casting a ballot in two 2004 congressional primary runoffs in which his boss, Re. Pat McHenry (R-NC) was a candidate. It was not legal for him to vote in the district. The phony residence used is owned by McHenry.

Nevada Governor Jim Gibbons is under investigation for corruption in accepting cash and gifts in exchange for defense contracts. The charges stem from when he was a congressman. Gibbons will probably go to jail.

The stories go on and on as political corruption reaches new heights in America.

The prospect of the George W. Bush, Presidential Library being built on the campus of Southern Methodist University received a boost as voters in University Park, Texas passed a proposition that paves the way for the city to sell a piece of parkland to the University. The vote was 1,782 to 420 for.

Gallup sees approval of Congress at 29%; Bush at 33% and both ratings are slightly below their 2007 averages.

Our elitists in Washington are escalating the scam known as the war on terrorism. A new phase of psychological warfare is underway. You can spot the rhetoric and propaganda ten miles away. The idea is to instill fear and paranoia. Americans must be prepared for homeland terrorism that is a figment of Washington’s imagination.

The latest case is six foreign born Muslims who were allegedly going to attack soldiers at Fort Dix and assault a Pennsylvania naval installation. There may have been a conspiracy to carry out such attacks, but we find it coincidental that this plot comes at a time when Washington is besieged by multiple political crises’. It is not only Mr. Bush and the administration – it is also the Cabinet and Congress. The public is truly unhappy with almost the entire lot. The Virginia Tech massacre has all the trappings of a Manchurian Candidate victim.

What concerns us is that very high level government and military and military officials are preparing homeland security plans, which include Martial law and a suspension of civil liberties.

A panel of 41 security experts sees a possible terror strike causing catastrophic destruction and death and a disintegration of government order as the social order unravels. The objective of this panel is to maintain order and to control the civilian populace. We believe there is small chance of an extremist terror attack. The real problem is a false flag operation – a government orchestrated attack – to form a dictatorial government out of chaos. We believe this is aggressive promotion of the suspension of civil liberties and the imposition of Martial law. Referring to history we can only expect the worst from the elitists when today we are under attack by government in every quarter. The government is our enemy. Of course, all these plans are being hatched behind closed doors and the public knows nothing of what is really going on.

There are 50,000 homes for sale in Phoenix and at the height of the housing boom there were 4,000.

The US does not plan to buy more oil for its strategic petroleum reserve until after the peak demand summer driving season. We do not understand this, as crude oil storage facilities at Cushing, Oklahoma are all full, due to bottlenecks at the refinery. If they are full why is our government not purchasing this oil stuck in storage?

Mortgage applications fell for the first time in four weeks as the index fell 0.8. The 30-year fixed rate mortgage rose 3 bps to 6.13%, down from 6.6% a year ago. The purchase index fell 1.4%. Refi apps rose slightly.

Industrial production rose 0.7% in April. Capacity utilization rose to 81.6%.

In the South Carolina Republican debate, MSNBC had Ron Paul at 48%, Mitt Romney 18% and Giuliani at 17%. The ABC News Poll had Paul with 18,569, Fred Thompson 299, Mitt Romney 265 and Giuliani at 254. Ron Paul ran all over the opposition. The long shot initialed an exchange with Giuliani implying US policy in the Middle East had contributed to the attacks in NYC and Washington. He said the CIA was right to teach about blowback and the US cannot do what we want around the world without inciting hatred and a response.

Evidentially the public isn’t as brain dead as we thought. They saw the difference between a bunch of tired old political retread hacks parroting the same old lines they are fed by their elitist handlers. Paul is the man with a clear vision of what is wrong with this country and he knows how to solve our problems. This has the Illuminists terrified.

In spite of the voting, CNN & MSNBC declared either McCain or Romney the winner. This is par for the course and that is because Ron Paul will not support the policies of world government. This is a perfect example of how media fixes elections.

We kept wondering why Bill Gross was always so wrong about interest rates. We suspected he was in the back pocket of the Illuminists and now we are sure. His company, PIMCO, the world’s largest bond fund, owned by Allianz, has hired Sir Alan Greenspan as a consultant. Greenspan will communicate regularly with PIMCO executives on economic issues and his insight on interest rate policy. This also means the Illuminists from behind the scenes will control PIMCO and Gross will end up being a figurehead. The elitists have to control PIMCO, which holds $680 billion in bonds. This year and since last June, PIMCO has been in the bottom 20% of its peer group after having bested 97% in the previous ten years.

Southern California home sales plunged to a 12-year low in April, suggesting that the region’s real estate slump is far from over. Prices rose 6.1% from a year earlier to a median $505,000 driven by an up-tick in Los Angeles Country, masking declines in Riverside, San Diego and Ventura Counties. Demand is not there and supply continues to build.

April sales fell 28.9% yoy and 12% from March. Sales dived 45.1% in Riverside and 46.7% in San Bernardino Counties. Sales are now declining not only in lesser expensive homes, but in expensive homes as well. Median prices in Riverside fell 1% to $409,000, but rose 2.8% in San Bernardino. A year earlier they rose 9.4% in Riverside and 18.4% in San Bernardino. Los Angeles was up 5.9% yoy and unchanged from March. Los Angeles accounts for 35% of all sales and sales fell there 22.2%.

Orange County’s median was flat at $629,000, a 0.2% decline from April 2006, and unchanged mom. Sales fell 24.7%. In Ventura County, prices fell 2.4% to $572,000 as sales dropped 11.7% yoy. In San Diego, the median price slipped 3% to $490,000 for the slowest rate of decline since August. Sales fell 13.5%.

The pace of existing home sales slowed in the first quarter by 6.6% and the median price nationwide slipped 1.8% to $212,300. Sales were 6.4 million versus 6.9 million annualized for 2006. Mortgage lenders foreclosed on 62% more homes in April yoy. Prices fell from $216,100 in 2006.

The west is finally getting hit hard with sales off 11.9% or 1.8% below a year ago at $336,200.

Existing home sales fell I the South 7.3%, 6.1% in the Midwest and the Northeast rose 1.2%.

The Gallup Poll reports only 25% of Americans now say they are satisfied with the state of their country, down 8% in just one month. Satisfaction has averaged 43% since 1979. Forty-five percent of Republicans are satisfied and only 12% of Democrats are, and that is with Democrats now controlling Congress. That means Democrats are livid with what the Democrats they elected are doing or not doing. As we said last year except for 5% of Congress throw them all out. We had about 55 incumbents get thrown out last November, but as you can see it wasn’t good enough. Perhaps the dumb Americans are finally getting the message.

Over a three year period $1.4 trillion mortgages will go into foreclosure and Ben Bernanke tells us, “the slowdown in the housing market has further to run, but it won’t have an impact on the rest of the economy.” He must be referring to the Martian economy.