Thursday, October 23, 2008

Open Forum

Feel free to discuss issues, post comments, links, etc, here


Patrick said...

Will Bailouts Risk Hyperinflation?

Government bailouts of the financial system will destroy the dollar,
euro and sterling because of hyperinflation, Martin Hennecke, senior
manager of private clients at Tyche told CNBC. But Todd Everts,
president & CEO of Wall Street Global, disagreed.

Tim said...

Severe inflation (not necessarily hyperinflation, but bad news nonetheless) seems unavoidable at this point. Every major Western country has now come forward and declared that they will guarantee bank deposits and inject cash into said banks.
Question 1 is, where did this cash come from (most, if not all Western countries run severe budget and/or trade deficits)? Question 2 is, if a sovereign government threw money at me (a bank) while simultaneously guaranteeing all my deposits, WHY wouldn't I start loaning NEW money like crazy? Which leads to, you guessed it, more money creation, and more inflation.
I'm not proclaiming a worldwide Zimbabwe effect (yet), but basically every currency WILL be devalued, and quite quickly.

anon916 said...

I'm a little confused on this latest banking action and I'm hoping someone can explain it to me because I seriously think I'm missing something.

So, in a coordinated international effort, most of the G7 (or G20?) governments are giving (sharing/lending?) public money to particular banking institutions to keep them in business so that they can lend that very same money back to us, with interest?

This can't be true?

Justin_n_IL said...

America's bedraggled, debt slave consumers are about to reap the final whirlwind which will finally unwind what is left of their consumer materialist society. This final shoe will come in the form of the cheaply made and cheap priced and often poisonous Chinese consumer goods. It is these very goods that not only have stuffed American households in a gluttony of soulless, Christless consumerism but have equally driven those same mindless consumers out of their middle class manufacturing jobs and into the lower class that make up the vast vast masses of service sector jobs.

jerry said...

What is interesting, and I think I have it right, in this G-7 plan is that there will be a call for countries that have large trade surpluses to balance out their surpluses with countries which are carrying trade deficits. To me this sounds like the countries with trade surpluses have to reduce those surpluses by buying up debt held by countries with trade deficits. To me, this sounds like a New World Order under a socialized economic plan. Will it work or will it be undermined?

To comment on Justin's point, it is my belief, and, of course, I could be proven wrong as we approach a large spending season. 77% of the income earners, who are not in the upper 1% of the income bracket, maybe spending considerably less because of lower wages, job cuts, or the threat of a job cut, declining retirement accounts, inflationary pressures, etc. I don't see the majority of consumers resuming their previous debt spending practices. A G-7 plan may not bring about a world wide block party celebration.

Therefore, the freeing of capital for lending purposes may not really occur. Those thinking of borrowing for whatever reason may have second thoughts out of fear that they may have a problem paying back the loan. Nouriel Roubini has always said this crisis is not a problem of liquidity, but one of solvency. Would a borrowing applicant be willing to risk insolvency after borrowing huge sums of capital to expand or create a new project, or to remodel one's house if they cannot be certain that there will be a steady cash flow to pay it back?

We can have the sweetest bail-out bill, but if it does not create a large enough flow of credit, then what good is it. And again, even with a large cash infusion into households, what would YOU do with it? Buy a car, new kitchen, or save it, since your retirement plan was damaged? These are unanswered questions that may yet to be seen.

A significant question that still hangs above the abyss is how much debt can a nation take on when their ability to export real stuff is only 17% of GDP, and our agriculture is only 7.7% of GDP.

Nobel Prize winning economists believe a nation cannot grow with such sizable debt. All of here communicating in this forum agree that the financial growth was a paper tiger that ended up getting hunted down and killed.

Black Star Ranch said...

...the most infrequently mentioned part of this "more money for hire" equation is - A smaller percentage of the spending public has the desire and/or ability to spend at pre-problem levels. Add to that the recent past increases in costs of basics (shelter, food, & fuel), and the additional increases in same due to more governmental spending (thru bailouts) and you have a "milder" economy. Higher operating costs (by FedGov) with less return = continued downturn with incremental acceleration. That's at least how an old gardener looks at it.

Black Star Ranch said...

....Much better said, Jerry.....

Andrew said...

Hi Randy,

I'm emailing you in regards to an email I sent to you last month about a partnership, have you had a chance to think about it?

If you would more information about the proposal, please let me know.

I look forward to hearing from you.

Kind Regards,
Andrew Knight.
Website Manager
Banking & Finance Division
Asia-Pacific Region (Australia) Pty Ltd

Chetlv said...

Jim Willie radio interview discussion on the new global reserve currency being cooked up right now, the credit default swap monster and gold/silver.

jerry said...

I appreciate the Jim Willie interview. Very interesting. I agree wholeheartedly on the entire crime family perspective. It is a global syndicate. We are all just drones in their machine unless we all organize and march against the Game Plan Players in Washington, DC. But, unfortunately, that won't happen until it becomes an after effect. Congress will, more than likely, already have its new suits and skirts with briefcases in hand finding comfortable chairs to sit in within the halls of congress. If Jim Willie's predictions come true, there will be an uprising of disgruntled Americans looking for bear, or moose, in Washington. There maybe enough momentum, at that point, to demand serious changes. I don't believe McCain has the wherewithal to mentally or emotionally handle such a significant demand placed upon him. Just read the Rolling Stone article about him. He really is a Bush clone and a serious mental case. If he does have cancer that is spreading, then Palin would be dangerous in the Oval Office with First Dude by her side. Regarding McCain's cancer, it appears he is getting treated with radiation on a tumor that was very large, and now shrinking, that lives in his left jaw bone. This is serious stuff. Now Palin appears to have stolen public dollars in order to have her house built. Are we not tired of thieves, and serious criminal-like politicians inhabiting the White House? McCain hanging with Charles Keating, then G.Gordon Liddy, and retired Army major general John Singlaub is just too much for me!

There is so much out there to digest that one does not really know what to do other get ready, if that is all possible. Mentally ready is as important as physically ready and economically ready when it is time to begin feeling the heat of the meltdown.

Being resourceful is critical. Being debt free is another essential.

I guess I love where I live too much to head to Canada.

jerry said...

Chetlv said...

Did you guys hear Warren Buffet is buying this morning (Fri) ? He's loading up on American stocks. Maybe the volatility we're seeing is the market attempting to form a bottom. I'm still nervous to jump back into the equity market. I did however load up on gold/silver physical.

Randy said...

I listened to the alex jones audio clip last night - long, but very interesting perspective. Thanks.

Chetlv - I plan on listening to the Willie Clip tonight. As for Buffet, I believe he's part of the bought and paid for Gvt propaganda and economic control system.

Justin_n_IL said...

The Oracle of Omaha is just that Randy.

Anonymous said...

Love your weekend funnies Randy.

Best regards,

Anonymous said...

Any thoughts on the time line for serious inflation? Also interested in thoughts on potential indicators/events to speed/retard inflation. Some are saying 2 years before we see an increase on the velocity, with many potential events in that time frame to change the environment. Would love any input.

Randy said...


I would love to give you a definitive answer, but there are too many variables in play.

1) Will the USD remain the world's reserve currency?

2) Will our foreign creditors continue buying our debt?

3) Will they dump their current holdings?

4) if 2 above is no and/or 3 is yes - will the US print what is required to buy up our own debt?

5) Will we completely nationalize the US banking system?

6) Will we see more taxpayer bailouts in the not too disant future?

7) Will Paulson and the boyz have enough power to continue manipulating the commodities markets?

I could go on, but think you get the point...

The recent orchestrated crushing of Oil and commodities, simultaneous with strengthening of the dollar was done to kill the massive consumer inflation wave that we saw this year - that, had it been allowed to continue, would have prevented the fed/PPT to use their full arsenal of ammunition in this crisis. With oil at $150 and gold @ 1,000, they threw their motherload at the problem.

Now, with falling oil/commodities, they can move to ZIRP next year. What will "that" do to the USD and consumer inflation?

With all that said, I personally think we'll be back to record consumer inflation MUCH sooner than 2 years.

Hope this somewhat vague answer helps.


Virgo said...

ECB's Nowotny Sees Global `Tri-Polar' Currency System Evolving

By Jonathan Tirone

Oct. 19 (Bloomberg) -- European Central Bank council member Ewald Nowotny said a ``tri-polar'' global currency system is developing between Asia, Europe and the U.S. and that he's skeptical the U.S. dollar's centrality can be revived.

``What I see is a system where we have more centers of gravity'' Nowotny said today in an interview with Austrian state broadcaster ORF-TV. ``I see for the future a tri-polar development, and I don't think that there will be fixed exchange rates between these poles.''

The leaders of the U.S., France and the European Commission will ask other world leaders to join in a series of summits on the global financial crisis beginning in the U.S. soon after the Nov. 4 presidential election, President George W. Bush, French President Nicolas Sarkozy and European Commission President Jose Barroso said in a joint statement yesterday.

Nowotny said he was ``skeptical'' when asked whether the Bretton Woods System of monetary policy, set up after World War II and revised in 1971, could be revived to aid global currency stability. The U.S. meeting should aim to strengthen financial regulation, define bank capital ratios and review the role of debt-rating agencies.

European leaders have pressed to convene an emergency meeting of the world's richest nations, known as the Group of Eight, joined by others such as India and China, to overhaul the world's financial regulatory systems. The meetings are to include developed economies as well as developing nations.

`Real Economy'

Bush, 62, has cautioned that any revamping must not restrict the flow of trade and investment or set a path toward protectionism. The G8 nations are Britain, Canada, France, Germany, Italy, Japan, Russia and the United States. The U.S. hasn't committed itself to the sweeping terms of Europe's agenda, White House press secretary Dana Perino said yesterday.

Sarkozy wants the G8 to consider re-anchoring their currencies, the hallmark of the 1944 Bretton Woods agreement that also gave birth to the International Monetary Fund and World Bank.

The current financial crisis, in which European governments have pledged at least 1.3 trillion euros ($1.7 trillion) to guarantee loans and take stakes in lenders, should be ``under control'' by mid-2009, Nowotny said. The economy will suffer longer.

``What comes then, unfortunately in parallel, will be the problems for the real economy,'' Nowotny said. ``The growth rate in 2009 will be significantly below what we have in 2008.''

He predicted gross domestic product growth around 1 percent in Austria next year.'


Randy said...

My Take: The US Dollar as the world's "sole" reserve currency is coming to a close and our lives will forever change.

"Sarkozy wants the G8 to consider re-anchoring their currencies"

No way unless one of the majors is pegged to something tangable and they limit the printing presses - Impossible Today! Bretton Woods has long been dead and can't be revived.

The "tri-polar" economic centers are North America (based in the US), Western Europe (based mainly in Germany and France) and Asia (based in Japan).

What wasn't mentioned - How do the following players and their currencies fit into the picture:
1) China
2) Russia
3) OPEC nations

Lastly, in what currency will oil be priced - In one, many or a basket of currencies?

As FoFoa has stated: it is the currency that prices oil that IS the reserve currency of the world.

Justin_n_IL said...

jerry said...

To Anonymous, In addition to what Randy has already stated in regards to a timeline regarding future inflation, another factor to consider is what happens in Afghanistan and Iraq. If the Iraqi elections turn and eject Malaki, in December, and vote in al-Sadr, then the U.S. might be asked to leave the country without any oil deals. Afghanistan is deteriorating quickly. End of December is a key point-in-time.

One cannot forget that the U.S. is diving into the depths of debt. The middle class is experiencing inflation and income erosion. Jobs are disappearing and foreclosures are mounting. The Bail-out will not solve foreclosure problems. With jobs disappearing, General Motors heading toward bankruptcy, Ford, probably moving in that direction, and Chrysler leaning toward a merger, the mood in the country is grim. No one really wants to risk buying a house with price values falling, or a new automobile. Who wants to borrow any money unless they have to? Consumer fears will drive the market down and stagnation will continue. Universities are forced into hiring freezes, at this time, and student enrollment may begin to drop off quickly.

If Christmas is bad news for retailers, the new year will push the recession further. Christmas will be a key factor in regards to how the consumer views the future. If consumer spending is slow and weak, the beginning of 2009 will be a benchmark for inflation, and recession.

So, look for January and February to be strong indicators to where inflation and recession are heading. Too much is happening for a 2 year predictor to be accurate, from where I stand before the big picture.

Good article to read:

Ellen said...

I found this business course's Economics Lecture Notes on Deflation very helpful in understanding nflation/disinflation/deflation and also differences in different types of deflation, etc.

You can read it at

ECON 404: Lecture on Deflation
Define and compare to disinflation
•Common under pre-WWII gold standard – prices fluctuated along a zero
•Great Depression: U.S., Germany (U.K. and Sweden left gold standard first)
•In postwar fixed exchange rate regime, no significant deflation -- money was
linked to the dollar and the U.S. ran balance of payments surpluses to
increase international holdings of dollars.
•Small economies heavily dependent on trade (e.g., a single export) with fixed
exchange rates against major trading partner (Saudi Arabia and others).
•Japan since mid-1990s, China 1997-2002, Hong Kong since 1997.
•U.S. is worried about it.
Using the Aggregate Demand & Supply Model, show:
•Demand-led deflation: AD decreases, both real GDP and P decrease —>
recession + disinflation or deflation
•Supply-led deflation: LRAS increases, real GDP increases but P decreases.
Depending on slope of SRAS, P may not fall much, and SRAS shifts down
when expectations adjust.
•Inflation is primarily a monetary phenomenon, especially in the long-run:
monetary authorities create new money by buying either domestic
government bonds (i.e., print money to pay for lend to government), foreign
currency assets, or (in the old days) gold.
•Perfectly expected inflation has menu and shoe leather costs, but otherwise
economists expect that it would be “neutral” since nominal wages and
nominal interest rates would rise to offset it (tax rates are now indexed), and
real investment and consumption would be unaffected.
•Imperfectly expected inflation creates instability (show on AS/AS model):
investors and consumers enter a game with the monetary authorities.
•Hyperinflation makes investment very risky, and undermines financial system.
•Cagan’s hypothesis that money demand would decrease with hyperinflation:
use quantity equation (MV=PQ, V=1/k, k=GDP/M) to show that inflation
would be higher than money growth.
•Deflation in some ways is like inflation, but in other ways very different.
•Similarities: menu costs, shoe leather costs are low if deflation rates are
•Keynesian prediction of downwardly-sticky price levels (due to implicit
•Nominal interest rates have a zero lower bound (ZLB): Fisher equation
(ni=ri+expinf) when expinf is negative makes ri rise if ni is low enough.
Supply-led versus Demand-led distinction is important because of:
•nominal interest rates – supply-led deflation is likely to have higher nominal
•firm insolvency – supply-led deflation is less likely to create financial distress
for firms.
Demand-led Deflation:
•Fisher’s debt-deflation problem: firms default on loans, banks are troubled
(money supply shrinks).
•Cagan’s hypothesis in reverse: money demand increases.
•Expected deflation makes consumption fall (and money demand rises more).
•Depositors prefer to hold more cash, and fewer deposits.
•Banks lend less and buy more bonds.
So deflation can make the money supply fall, the deposit expansion multiplier
fall, and money demand rise – which means that deflationary expectations can
become self-fulfilling, and that the monetary authorities cannot respond to it in
small measures.
Keynesian “liquidity trap” – caused by non-monetary events, but monetary
policy would become useless with deflation as economy hit ZLB.
•This was used by Keynesians to justify preference for fiscal policy.
•But nobody seriously thinks that if the money supply were to double that
prices would continue to fall. Meltzner calls it “liquidity claptrap.”
•We call this a monetary policy discontinuity.
Current concensus is that a low and stable inflation rate of 2-3% is optimal, since
there is a measurement error in inflation rates and future shocks are hard to predict
and avoid. The Fed has sent strong signals that it is aware of the problem and will
not let deflation occur, in order to correct the expectations problem.
So what went wrong with Japan?
1) Unbalanced Financial Liberalization in late 1970s and 1980s:
• Removed government oversight and bank regulation but did not fix weaknesses of the
old financial regime, including non-transparency, pervasive deposit guarantees, “no
failure” policies regarding banks and limited failure in real sector (esp. large firms),
public intermediation through postal savings and the FILP, and a feedback between
bank lending and both land and equity prices.
• Regulatory and market innovations designed to increase portfolio diversification
generated a fundamental flaw: increased portfolio diversification increased the
opportunity to assume and manage risk, and the key characteristics of the old regime
provided incentives to assume risk.
2) Accommodative monetary policy in the second half of the 1980s, after the Louvre Accord, as
the Bank of Japan focused on limiting yen appreciation in the context of high rates of real
economic growth and low inflation. Fast money growth did not immediately impact the price
level because of rapid real growth and increased productivity.
• This led to asset inflation (the “bubble economy”) in the late 1980s. Increased monetary
growth led to increased bank lending, which in turn increased the demand for land, real
estate, and equities. The resulting high prices for land, real estate, and equities fed back
into the banking system to support additional lending.
3) The Bank of Japan raised the discount rate in May 1989, and continued with tight monetary
policy through 1994. The resulting decline in asset prices weakened bank balance sheets,
reduced investment and consumption spending, and generated a nonperforming loan and
borrower problem. In hindsight, the Bank of Japan continued too long with tight monetary
policy and did not shift aggressively to easy policy.
4) The unwillingness of regulatory authorities to allow bankruptcy to remove inefficient
capital from the market, especially in the financial sector, and the willingness to adopt
forgiveness and forbearance as the preferred policy response, seriously interfered with financial
intermediation and credit allocation. Insolvent banks kept lending to insolvent firms and hoped
for the best.
5) When the Bank of Japan changed policy, it did not provide sufficiently stimulative policy
to prevent a gradual but define downward movement in the price level. When they acted,
policymakers focused on decreasing nominal interest rates (the zero interest rate policy) but
failed to recognize the effects of deflation.
• Reasons for this are largely political, i.e., an unwillingness to admit their errors, an effort
to pressure a cleanup in banking, and a fear that rising nominal interest rates would
seriously hurt their balance sheet (government bond values would decline) and the
Ministry of Finance would not come to their rescue.

Chetlv said...


The Fed is spending money at an astronomical rate. It’s creating this money out of thin air by monetizing bad debts and whatever else it has to. Remember, this is on top of all the other ongoing government expenses and it’s extremely inflationary.

Normally, there is a lag of about a year or so between money creation and inflation but eventually, what’s recently happened will result in massive inflation, a much lower U.S. dollar and a soaring gold price. This is inevitable but as our dear friend Chris Weber points out… not necessarily.

The bottom line is this, if the banks start to lend again, then the economy will be on the road to recovery and inflation. But we know the banks are scared and they’re being extremely cautious, for good reason. So if the banks decide not to lend and instead just sit on their cash, then the inflation process will freeze.

In other words, the risk of deflation has greatly increased. Inflation is not a given and much will depend on what the banks do, or don’t do in the period just ahead. The Fed is providing the ammunition but the banks have to use it. If they don’t, the outcome could be much different than what most analysts feel is a done deal.


At this point, it’s best to be prepared for either outcome. That means gold for inflation and cash for deflation, at least until we see how things unfold.

FOFOA said...

Price inflation also has a psychological component. There is a lot of monetary inflation already baked into the system from the last 7 years. And all the talk of inflation/deflation can have a real effect on the psychological component. For anyone who hasn't read it yet, this is a must-read report on hyperinflation from ShadowStats. Also, Karl Denninger makes some good points today about why a resumption of lending is exactly NOT what we need right now.

FOFOA said...

Here's a good post on the Kitco forum about deflation/hyperinflation.

Justin_n_IL said...

Randy said...

Thanks for posting up all the links, comments, articles, etc - I'm currently in information overload mode.

BTW: I'm about 1/2 way through that kitco deflation/hyperinflation forum. Very impressive!


jerry said...

The link provided by FOFOA was very insightful. There was much discussion about debt amnesty. I don't foresee that happening because there are too many diverse players who really don't want to see the US getting off the debt hook.

It is really hard to predict what will happen next because there is so much manipulation going on. I liked the last comment on the last page which said that these banksters are getting taxpayer bailout money so that can further their own wealth, manipulate the market to further their wealth, until there is a time when it won't work anymore.

We heard either Paulson or Bernanke say such a thing when he warned the banks that they need to use the bailout money to further credit, since he knows what they are really using it for. When it comes out that the banks are using it to jack up stocks to further their personal wealth, then the public will scream loudly.

These bankstas all know what is coming, otherwise they would out there further "creditizing" American business. It ain't happening!

Chetlv said...

Summer 2009: The US government defaults on its debt

This website (subscription 200 Euros) correctly predicted a global systemic crisis starting Sept 2008 back in Feb08 and their latest bulletin is alerting of a default on US gov't debt by end of summer 2009. Maybe this is the time when a new currency will be proposed to compete with the eurozone-russia-china per Jim Willie

Anonymous said...

There's a new article over on MSNBC re TWEOTWAWKI. Kinda upsetting to some individuals. Depends upon how you spin it.

Next Dimensions said...

COMEX default explained:

Justin_n_IL said...

This is a good old school video concerning inflation. Here's the link to part 1 of 4.

Anonymous said...

Thank you all for the content on the inflation timeline and triggers. Much appreciated insights. Randy, I have been a reader for 12 months and have been acutely tracking the economic, political and social downturn for 18. You and your readers/contributors bring a welcome diversity of perception. Thank you. Strength and Honor, -rip

Next Dimensions said...

"Rob's" survival and info forums:

"Luck favors the prepared mind."

Next Dimensions said...

Gold and Silver COMEX commentary video. Skip ahead to 11 minute mark (or watch whole video on base metals)

Randy said...

Next Dimensions - Correct link below:

Fast Forward to 11:00 mark

BNN Commodities Report

Randy said...

Justin - great inflation video; watched it last night - thanks


Appreciate the GEAB link - as you probably already know, I posted it up last night.

Many of you may not know that I work 11 hrs a day, 5 days a week and then come home and try to spend time with the family and then tend to this blog - don't always have the time to reply/comment and thank everyone for their contributions.

With that, I'm very fortunate to have some of the most well-informed readers around, and I 1) appreciate all the great links/info and 2) truly enjoy reading the dialog that you spur/maintain between each other - just wish there was additional time in each day to get more personally involved.


Think I speak for all here. Our pleasure.

The Main Goal of this blog is to inform, educate and hopefully open eyes to what our future will likely hold - so readers can take actions to better prepare for their loved ones/families.


Anonymous said...

I like this guy (taped in July):
FUNNY but smattered with truth

Justin_n_IL said...

Your welcome Randy. The following occurred last Friday. Makes you wonder what's up.

SARANAC LAKE - Powerful generals and admirals from some of the most powerful nations on Earth are reportedly meeting somewhere in the local area this weekend after flying into the Adirondack Regional Airport in Lake Clear on Friday.

Among the passengers of a large Boeing 757 airplane with "United States of America" printed on its fuselage were top members of the U.S. Joint Chiefs of Staff and their counterparts from France, Germany and another country, possibly Great Britain, according to Barry DeFuria, a town of Harrietstown councilman and Airport Committee member who was there when the plane landed. A top military delegation from Italy flew in on a separate Falcon airplane, DeFuria said.

Town Supervisor Larry Miller, also on the Airport Committee, was also there and confirmed which nations' officials were on which planes, but he said he did not know what kind of officials they were or where they were going from the airport. He said he and DeFuria had to get security clearances to be present and that soldiers were guarding the 757 around the clock at the airport.

The Joint Chiefs of Staff is the leadership council of the U.S. military, comprised of the top general or admiral of each branch of the armed services. Its current chairman is Admiral Michael Mullen.

Justin_n_IL said...

A good Jim Rogers video. It's gets a little heated towards the end.

Anonymous said...

Hi..followed Jim Willie's latest post to this article by John Mauldin:

The section on Letters of Credits is indicating that the grandma of all storms headed this way...

Justin_n_IL said...

From the above mentioned article.

"Depressions are caused by governments making major policy mistakes."

Yes, and just who exactly do they legislate for? Ever heard of lobbyist and BIG donors?

Josh said...

Wow! I just checked the Japanese yen. It's at 91 to the dollar right now. Watch out dollar!

Justin_n_IL said...


"In fact, the fed funds futures on the Chicago Board of Trade are now pricing in a 26% chance that the Fed will cut rates by three-quarters of a percentage point to 0.75% by that meeting."

Justin_n_IL said...

Most of you keep up with Jim Willie but here is his newest.

jerry said...

I was trying to find out more info on the U.S. and foreign military brass flying into the Adirondack Airport, Saranac Lake for unknown powwow. That is now off the radar screen. There is nothing kept on the daily Dispatches' website. It has virtually disappeared, except for some short basic stuff about it.

Justin_n_IL said...

Hey Jerry here is an interesting tidbit about all of that (maybe).

"10.01.08 - Trudeau Institute and U.S. Navy receive order to continue Pandemic Influenza vaccine development project

Saranac Lake, N.Y., – Dr. David L. Woodland, president and director of the Trudeau Institute, announced today that President Bush has signed into law the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009 (H.R. 2638), which includes $1.6 million in additional research funding to support a joint program between scientists at the Trudeau Institute and the U.S. Navy to develop a pandemic influenza vaccine. H.R. 2638 includes the Defense Appropriations Bill for Fiscal Year 2009."