March 24, 2011
Cycles and booms and busts just don’t happen. They are planned that way. In the late 1990s Fed Chairman Alan Greenspan commented on irrational exuberance and said he hoped the market would cool down. The amount of money and credit he had introduced into the system had a great deal to do with a forming of a bubble. He indicated that on the short-term there was little he could do about it, when all he had to do was raise margin requirements from 50% to 60% temporarily. We wrote about the solution as a coupe of other writers did, but no one really wanted to take away the dotcom punchbowl. In late March of 2000 the market began its collapse. We removed our subscribers out of the market in the first week of April, as did Joe Granville, a friend and one of the best market timers ever.
Sir Alan Greenspan spent almost 20 years serving his masters who own the Federal Reserve, JPMorgan Chase, Goldman Sachs, Citigroup and many more. The Fed has no independence – it takes orders from these banks and brokerage houses. This same group controls Congress by paying off 95% of the representatives and senators via campaign contributions and via lobbying. Thus, with the assistance of the Fed, Wall Street and banking, they not only control money, supply, credit, interest rates and Washington, but they control our entire economic and financial scene and the lives of every American. Booms and bubbles can be blamed on politicians, but the real culprits behind the scenes are Wall Street and banking in which we spent 29 years of our lives and for many of those years owned our own firm. If you do not know and understand these realities you should not be an investor or a financial and economic journalist. Our whole existence as a nation is controlled from behind the scenes by parsonages and groups most people have never heard of. All of what you see just didn’t happen; it was planned that way. People must understand that creating money out of thin air to fund astronomical deficits has to end in failure and ruin. We are now in an inflationary depression that will probably graduate into hyperinflation and then descend into a deflationary depression. This is what these elitists have done for centuries and have more often than not gotten away with it. This time it will be different.
We started warning people more than 50 years ago that the path America was taking could only end in tears. The days of inflation and social and political misery are finally upon us and as a result, so is social dislocation worldwide in the form of protest, demonstrations, civil wars and the overthrow of governments. We are not witnessing that in North Africa and the Middle East. This has been in reaction to dictatorial governments, low wages, high prices for food and few jobs. As we have said over and over again, revolutions begin with empty bellies. What you are seeing will not be limited to the third and second worlds, but to the first world as well. the elitists have again gone too far and the people of the world are reacting. This is only the beginning of dramatically higher food prices and perhaps oil and gas prices as well. Governments cannot help, nor can the elitists behind the scenes for all intents and purposes, saving the system is now out of their hands and what they have done has been discovered.
Most countries have followed the path of the US, UK and Europe, accumulating deficits many of which are unpayable. Essentially the world banking system is bankrupt. The Fed and the ECB buy debt and toxic debt as well as sovereign debt; the funds used for this purpose are created out of thin air. Sooner or later there will be a major worldwide meeting to revalue, devalue, and to multilaterally default. This can be the only solution to 40 years of profligacy and fiat currencies. The present cover-ups by central banks, Wall Street, banking and the City of London won’t last much longer. Unemployment worldwide and higher inflation are worsening and can only end in social and political dislocation. How can a government such as the US continue to spend in excess of 60% of revenues and expect others then the Fed to purchase their bonds? Spending has to be cut and taxes raised over a five year period. If that doesn’t happen and we get QE3 and more stimuli there will be ever more inflation and debt. Finally there will be financial collapse.
We do not in anyway relish having to tell you that the future will be very difficult. Financial dislocation will abound and in some of the countries in the third and second worlds there will be famine and death. As you know desperate people do desperate things and in June 2003, after the point of no return has passed, we predicted the events that unfortunately are being sensationalized today. Bringing the truth and facts to the people of the world is one thing, but trying to unnecessarily terrify people is another. All this should be presented in a calm, logical and rational manner.
As you know gold is up 15-1/4% annually, versus 9 major currencies over the past ten years. Over 11 years it has risen 83% versus the US dollar. Even the venerable Swiss franc is off 12.1% annually or 50%. The Dow has fallen 82% versus gold. The US economy has not only been mismanaged, but it has been gutted by massive criminal corruption. As the end of the world financial structure comes into view the scramble by the criminals on Wall Street and in banking accelerates, because they want to steal as much as they can before the collapse. That is why once the people have rescued their country from these criminals they should be tried, convicted, jailed or hung and all their assets that they have accumulated for themselves and their families should go to the federal government and the people. Heads will roll and we remind them because we know they read this publication, that you are conscious and alive for 15 to 30 seconds after your head is removed. This gives these criminals a final view of their headless corpuses.
We predicted the demise of the bond market months ago and that process began four-months ago. The 10-year US T-note rose from 2.20% to 3.74%, but with the demise of the stock market there has been what we consider a temporary rally to 3.23%. The downward pressure will continue. The Fed will continue to dominate the short end of the market, but not the long end. The fed will come under relentless pressure trying to affect the long end of the market and in that process squeeze the corporate demand out of the market. Investors should have been out of municipals three years ago and other bonds at least four months ago.
As we write Rep. Ron Paul is having hearings regarding the governments’ bogus CPI and PPI statistics. Hopefully the employment figures will follow. Inflation is now about 8% headed to 14% by the end of the year and perhaps much sooner. QE3 and more stimuli will take us to hyperinflation. Near zero interest rates and commodity shortages are adding to the upward move in inflation. The flip side is if there is no QE3 and stimulus, or if official interest rates rise, such as the ECB is talking about, the bottom will fall out of the economy. All currencies continue to lose value versus gold and silver, so except for operating expenses, you want to be out of all currencies and in gold and silver related assets. No matter what Larry Summers does in behalf of the elitists all currencies will devalue versus gold and silver. We see the future as absolutely inevitable.
We see all kinds of terrible things going on in the world, so many say, why are not gold and silver and shares moving higher? It is simple your government is manipulating them. That is the bad news. The good news is they cannot do it indefinitely. Hopefully, Rep. Ron Paul will bring legislation to bring an end to the Executive Order that allows “The President’s Working Group on Financial Markets” to exist, and return us to free markets and ends the basis for corporatist fascism.
We do not have to remind you of the ongoing problems in the aftermath of Japan’s earthquake and the problems that presents for the world.
There are further problems facing the Middle East as well. Even the mainline news admits as much.
In the US the states, as far as we know, haven’t solved their financial problems nor have the municipalities or the Federal Government for that matter. In the bond market, MBS municipal and investment grade corporate spreads are widening. There certainly has never been a dull moment as the world continues submerged in debt, and a good part of which is unpayable. The public and corporations either pay down the debt as countries inflate it away or monetize debt, which causes inflation and currency debasement. That is why currencies fall against other currencies and more importantly versus gold and silver. It has been shown historically that when a gold standard is used, inflation alternates with deflation that brings balance in markets even if the government inflates. The result is that over time prices stay about the same. Today we suffer from the result of leaving the gold standard. Once you do that all you get is inflation, the depreciation of a fiat currency and higher gold prices.
It should be noted here that problems in the Middle East, North Africa and in Japan should develop into deflation, but that will be superceded by more massive debt creation, at least that will temporarily keep the deflation monster at bay. The only country in this group that could fall to deflation quickly is Japan, which has been in depression since 1992. What the US and others have experienced for more than three years is a papering over of the monetary and fiscal excesses and creating future inflation liabilities, which are now coming home to roast. Paper money, or at least money with no gold backing, brings on inflation. As a result the spectra of hyperinflation is discussed. There are very few episodes over the years when the world sees hyperinflation. Since the mid-1700s only some 30 instances have occurred. Thus, we are careful to predict such an event until it becomes overwhelmingly evident that hyperinflation will occur. We are often asked when does hyperinflation happen and the answer is probably when inflation exceeds 50% and has the power to become inflation of thousands of percent. These kinds of numbers come as a result of monetizing a large percentage of government debt. That unfortunately has been in process for the past two years or more. We are also in the process where bad money drives out good, or real money such as gold and silver. Eventually gold and silver and selective currencies in turn drive out the bad currencies, which in turn collapse and become valueless. Hyperinflation destroys the value of all but a few currencies and, of course, all the while gold and silver advance in value versus the currencies. You will always hold the value of your wealth and protect it by owning gold and silver related assets.
Before we leave this issue we’d like to say a bit more regarding quantitative easing. We as you know are closing in on the tail end of QE2, and last May we predicted QE3, stimulus 3 and perhaps more behind. The largess heaped upon banks, Wall Street, insurance companies and selected transnational corporations has allowed them all to prosper, dispense fantastic bonuses and to destroy their competition, thereby making them bigger and more competitive and further too big to fail. Of course, the taxpayer paid for all this and received little or nothing in return. All QE2 did was temporarily bail out the government by creating money out of thin air, again at the expense of the average American. The result has been at least in professional circles, a serious loss of integrity in the Fed and its ability to deal with such situations. The dollar is getting pounded as a result and that will continue. Inflation will rage and gold and silver will rise ever higher. It is evident to thinking people that the US and the world monetary systems are insolvent. It is obvious that almost zero interest rates, quantitative easing and stimulus have to continue indefinitely or the bottom will fall out of the US and world economy. The dollar is doomed and if the Fed, and its owners the banks, are not stopped from doing what they are doing Americans and eventually the world will be enslaved in a total corporatist, fascist structure.
In the meantime malinvestment rages along with capital destruction. The problem is systemic and cannot be solved short of a purge of the entire system and that is definitely where this is all going to end up. Quantitative easing and stimulus have created an illusion of recovery. The situation in the Middle East, North Africa and Japan will be justification for QE3. All central banks can now do is print money.
On Friday the dollar hit another recent low at 75.65. It passed right through support at 76. That is because the message is finally getting through. That is that the US is bankrupt. While the dollar falls the Treasury Secretary is asking Congress for more debt. That is an indication of how desperate the elitist banks and brokerage houses are. There is no denial, this is how it’s been planned, and this is exactly what they expected. Normal logic does not apply. You have to understand what these people are up too, and why they are deliberately taking the economy and financial structure down. They have tried this time after time unsuccessfully. Only a handful of writers understand the operation, but eventually everyone will painfully discover what has been done to them.
Again, gold and silver related assets are the only assets that can protect your wealth and give you safety through the storm that we are embroiled in. Just look back 6000 years or for that matter for the past 11 years. If you understand history there is nothing surprising in that foreigners continue to buy Treasury and Agency bonds from an insolvent nation. The reason is that they are all in on taking down of the world economy. Like times before the elitists will again fail. The reason for owning gold and silver grow. Gold replaces the dollar, massive inflation is on the way, less than 2% of the public and institutions are involved, many nations are bankrupt and then the situation in N. Africa, the Middle East and Japan and looming food shortages. The elitist manipulation of the markets continues with less and less success. It is all paper. They have no physical for sale. In addition, more and more Comex contract holders are taking delivery, which has to stun JPM the big naked short in silver. Both silver and gold corrections have been shallow over and over again. We might mention that these crooks are being aided and abetted by the CFTC an the government. HSBC, the other big silver short, like JPM, is making it as difficult as possible to take possession of physical silver. Then, of course, there are the 50% to 80% bonuses not to take delivery.
Intervention by the G-7 manipulated the yen down .0266 to 80.71. They say this was the first such episode in ten years. If you believe that we have a bridge that should interest you. In spite of that the USDX fell to new lows. So much for a free market. The manipulation was done to remind players of the power of the G-7 and to save US and foreign banks from taking massive losses in the yen carry trade. Incidentally, market interference extends to hedge funds as well. Under the direction of the Fed, Treasury and the “Working Group on Financial Markets” they are also selling yen. This shows you how widespread the manipulation and corruption is.
Most writers believe that the elitists are confused as to why a recovery has not taken place. We refer you to the Bernanke-Boskin Paper in 1988 in which they point out that the actions of Bernanke today cannot work. Thus, this business of elitists not knowing what is going on is ridiculous. They know exactly what is going on because they planned it that way. We never know when these people will pull the plug, so we keep playing the game on our terms, so that we can retain our wealth. Chances are now 80% that there will be QE3 and more stimuli. They have perfect excuses, the disorder in the Middle East and the tragedy of Japan. The main players know the system is insolvent, but if you look at history you will see that their biggest financial gains and impositions of power takes place during a time frame such as today’s. These tactics allow the major banks, brokerage houses and others to reap enormous profits to bail out their unpayable losses. Soon real interest rates will again rise presenting a very difficult problem for borrowers and at the same time commercial interests will be shut out of the market, not being able to compete with Treasury and Agency bonds. That will be accompanied by much higher inflation, which will also drive yields higher. In addition, investors and professionals are becoming more and more aware of monetization, inflation and corruption at the highest levels. In addition, Rep. Ron Paul is pursing the bogus CPI, PPI and employment figures. Once that is successful the economy will quiver in shock and the unraveling will begin, as many will start questioning everything the Fed and the government does. Things such as the Obama Healthcare plan, which keeps business formation to a minimum and causes businesses that are on the edge to just close up and cease business. Everything possible is being done by the elitists and their bought and paid for Congress to destroy the American economy.
That means with quantitative easing and stimulus will give the economy 2% to 2-1/4% growth, when in reality there is negative growth of 3% or more. No headway is being made in business formation or employment and that will continue and the elitists know that. They are saving Wall Street, banks, insurance, big Pharma and transnational conglomerates. As we warned on December 16th, there was a second meeting at the White House to allow these transnational to do as they did six years ago. On the proviso of creating jobs, which they failed to do the first time, they want a tax holiday. Last time it was $350 billion at 5-1/4% rather than 35% and that cost the taxpayer $150 billion. This time it is $1.9 trillion at 5-1/4%. That will cost taxpayers $680 billion in lost tax revenue. These transnational conglomerates are pure criminals. We’ll continue this thought in the next issue.
Regulators in the US, Japan and UK are investigating whether some of the biggest banks conspired to “manipulate” the benchmark interest rate used to calculate the cost of billions of dollars of debt.
The investigation centres on the panel of 16 banks that help the British Bankers’ Association set the London interbank offered rate, or Libor the estimated cost of borrowing for banks between each other.
In particular, the investigation was looking at how Libor was set for US dollars during 2006 to 2008, immediately before and during the financial crisis, people familiar with the probes said.
The probe came to light on Tuesday when the Swiss bank UBS disclosed in its annual report that it had received subpoenas from three US agencies and an information demand from the Japanese Financial Supervisory Agency.
The bank said the regulators were focusing on “whether there were improper attempts by UBS, either acting on its own or together with others, to manipulate Libor rates at certain times”. All the panel members are believed to have received at least an informal request for information an earlier stage in an investigative process before a subpoena. Witnesses had been interviewed by investigators from the US Securities and Exchange Commission, the Department of Justice and the UK’s Financial Services Authority, people familiar with the probe said.
The enquiry has been underway for some months; at least one bank received its initial request for information in October, people familiar with the matter said.
The BBA produces Libor rates for 10 currencies using eight to 20 contributor banks. The contributors submit the rates at which they think they could borrow on the open market. Outlying submissions are tossed out and the reported rate is the mean of the middle values.
Critics of the process for setting Libor which is used as a reference rate for about $350,000bn in financial products have long claimed it is antiquated and lacking in transparency. Commentators complained bitterly during the financial crisis that the rates were distorted because they believed weaker banks were unwilling to admit higher borrowing costs.
UBS declined to comment beyond its disclosure. The regulators declined to comment. The other banks on the panel at the time covered by the probe either declined to comment or spokesmen could not be reached.
They are: Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, HSBC, JPMorgan Chase, Lloyds, Rabobank, Royal Bank of Canada, Bank of Tokyo-Mitsubishi , Norinchukin Bank, Royal Bank of Scotland and West LB.
HBOS, which has since merged with Lloyds, was also a member.
The BBA said: “We are committed to retaining the reputation and integrity of BBA Libor, which continues to be the authoritative benchmark of the wholesale money market. “It has a straightforward and unambiguous calculation method which excludes any rates which are significant outliers. It is fully transparent all of the data inputted by the contributor banks is publicly available, as is our methodology.
Federal inspectors found “near-miss” accidents at Indian Point on the Hudson and 13 other U.S. nuclear power plants last year, a watchdog group charged on Thursday.
A report by the Union of Concerned Scientists, based on Nuclear Regulatory Commission data, claimed that “many of these significant events occurred because reactor owners, and often the NRC, tolerated known safety problems.”
In the inspection of Indian Point about 25 miles from New York City, NRC auditors found that “the liner of a refueling cavity at Unit 2 has been leaking since at least 1993.” The USC report charged that “By allowing this reactor to continue operating with equipment that cannot perform its only safety function, the NRC is putting people living around Indian Point at elevated and undue risk.”
David Lochbaum, director of UCS’s Nuclear Safety Program, said that “the chances of a disaster at a nuclear plant are low” but “the more owners sweep safety problems under the rug and the longer safety problems remain uncorrected, the higher the risk climbs.”
Edwin Lyman, a physicist in the UCS Global Security Program, also questioned the U.S. action in advising Americans to clear out for a 50-mile radius around the crippled Fukushima nuclear plant in Japan.
Lyman said that the standard in the U.S. set by the NRC and the Environmental Protection Agency only called for a 10-mile evacuation radius around a stricken plant.
“The level of complacency here at home is appalling,” Lyman said. “They’re gonna have to get their act together.”
Gov. Cuomo on Wednesday called for shutting down the Indian Point nuclear power plant after a federal report branded it the most vulnerable to earthquakes in the nation.
“The suggestion is that of all the  power plants across the country, that the Indian Point power plant is most susceptible to an earthquake because Reactor No. 3 is on a fault [line],” Cuomo said as nuclear meltdown fears deepened in Japan.
“It should be closed. This plant in this proximity to the city was never a good risk.”
Cuomo, who has long opposed the plant, spoke after new data from the federal Nuclear Regulatory Commission show the Hudson River plant was the most vulnerable to a quake. It also came about two weeks after a judge let the Indian Point nuke plant – just 24 miles north of the Bronx – cut back on meltdown prevention.
In its 40-year history, Indian Point has suffered radiation leaks, useless warning sirens, transformer explosions and oil spills.
Twenty million people live within 50 miles of the Westchester County plant, and many local politicians and environmentalists oppose extending its license.
On March 4, Manhattan Federal Judge Loretta Preska upheld an NRC decision to let Indian Point operator Entergy use insulation that withstands fire for only 27 minutes.
The NRC usually requires that insulation on cables that control reactor core shutdown must withstand fire for at least a full hour.
Entergy insisted that other safety and fire-supression systems can handle a plant fire. They include the five-member internal fire brigades on each shift and the nearby volunteer firefighters in the tiny hamlet of Verplanck.
Preska’s ruling came in response to a suit filed by former Assemblyman Richard Brodsky (D-Westchester) and environmental groups.
Brodsky blasted the ruling.
“These are the cables that control the shutdown of the reactors,” he said. “You can’t bet the safety of New York on the ability of firefighters to get there in 25 minutes. The consequences are enormous.”
Scientists say a magnitude 9.0 earthquake like the one that crippled Japan is unlikely to hit Indian Point, although a quake as big as 7.0 is not out of the question.
That was the conclusion of Columbia University researchers, who discovered in 2008 that the plant sits at the intersection of two active fault lines.
An MSNBC analysis of the NRC data put the odds of a quake disabling the core of Indian Point’s No. 3 reactor at 1 in 10,000 – far worse than the 1 in 74,176 chance of a typical American reactor.
Paul Gallay, head of the environmental group Riverkeeper, said the conclusion the plant can withstand an earthquake is based on 40-year-old data.
Indian Point passed its most recent NRC preparedness drill last October, but records reveal a troubled history:
– Radioactive material – including tritium levels 10 times higher than what the feds say is safe in drinking water – leaked from a nuclear-waste storage pool in 2005.
– The NRC ordered malfunctioning emergency sirens replaced by January 2007, but they remained out of service until August 2008. The NRC levied $780,000 in fines.
– A steam generator tube ruptured in 2000, spewing contaminated steam into the air and flooding the Hudson with radioactive water. The reactor shut down for 11 months.
Detailed plans for evacuation exist, but few believe they’re realistic. A 2003 traffic study concluded it would take nine hours to evacuate a 10-mile radius around Indian Point in good weather; snow would boost that to 12 hours.
An illegal alien apprehended by the U.S. Customs and Border Protection agency during the last fiscal year had an estimated 84 percent chance of never being prosecuted, according to figures compiled by the office of Rep. John Culberson (R-Texas). Culberson submitted the figures for the record during a hearing Wednesday of the House Appropriations subcommittee on homeland security.
Of 447,731 illegal aliens apprehended by the U.S. Border Patrol during fiscal year 2010 (which ended last September), only 73,263 (16.4 percent) were prosecuted, according to the submitted data. That means that 374,468 illegal aliens that were taken into custody (83.6 percent) were never prosecuted.
Border Patrol is a component of the Customs and Border Protection agency at the Department of Homeland Security (DHS).
Describing the situation during the hearing, Culberson said that those who were not prosecuted “had a chance of being home in time for dinner,” after being in custody for a few hours.
He asserted that criminal consequences for those involved in illegal cross-border activity was “the key” to securing the nation’s border with Mexico.
The Texas Republican suggested that Operation Streamline, a program that fast-tracks prosecution and deportations of illegal immigrants crossing the border, should be applied to the entire southwest border.
According to CBP, the operation “targets illegal immigrants apprehended in specific enforcement zones for immediate prosecution for illegal entry. Violators face punishment of up to 180 days in jail. Additionally, deportation procedures are initiated to formally remove the individual once they complete their jail sentence.”
“This is the key,” said Culberson. “If we enforce existing law, impose real consequences and existing laws up to six months in jail criminal prosecution depending on the circumstances.”
But CBP chief Michael Fisher, who testified during the hearing, disagreed that Operation Streamline was the sole key to securing the border.
There were “a lot of other variables” at play, he said, citing “different judicial districts” with varying capacities to handle the prosecution load.
Culberson maintained, however, that the only consequence “that really has an impact is the criminal prosecution.”
CBP divides the almost 2,000-mile-long U.S.-Mexico border into nine sectors. Running from the Pacific Ocean to the Gulf Coast they are, in order, San Diego, El Centro, Yuma, Tucson, El Paso, Marfa, Del Rio, Laredo, and Rio Grande.
According to Culberson’s figures, of the 212,202 apprehensions along Arizona’s Tucson sector which is where most of the apprehensions took place in FY2010 only 30,748 (14.5 percent) led to prosecutions.
Testifying before the House Homeland Security Committee on Feb. 9, DHS Secretary Janet Napolitano told lawmakers that her “top priority in terms of effective control is the Tucson sector of the southwest border.”
The House voted yesterday to expand the state’s death penalty in response to a machete and knife attack that killed a New Hampshire woman and maimed her daughter during a home invasion.
Without debate, lawmakers voted to make home invasions like the murder of Kimberly Cates of Mont Vernon a capital crime and name the law after her.
“The senseless murder of Kimberly Cates shocked Mont Vernon and the state,’’ House Speaker William O’Brien, the bill’s prime sponsor and a Mont Vernon resident, said in a prepared statement after the vote. “The goal of this legislation is to act as a deterrent to ensure that anyone who would consider such a heinous crime would think twice before they go forward.’’
O’Brien, a Republican, said the bill will enhance protection for people in their homes. “This legislation will also deliver justice for victims of these crimes and their families,’’ he said.
Steven Spader was convicted of Cates’s murder last year and sentenced to life without parole. Codefendant Christopher Gribble’s trial is underway. Gribble has admitted to taking part in the attacks but is trying to convince the jury that he was insane at the time.
They could not have faced the death penalty in the 2009 attack because the crime does not fall into the six types of murders punishable by death under the state’s statute, one of the narrowest in the nation.
The six are: killing an on-duty law enforcement officer or judge, murder for hire, murder committed in connection with a kidnapping, murder committed during rape, murder committed during certain drug offenses, and murder committed by a convict serving a sentence of life without parole. New Hampshire’s last expansion to the law was in 1994, with the addition of killing a judge. In its 380-year history, New Hampshire has executed 24 people, none since 1939.
A Wisconsin judge issued a temporary restraining order Friday blocking the state’s new and contentious collective bargaining law from taking effect, a measure that drew tens of thousands of protesters to the state Capitol and sent some Democrats fleeing to Illinois in an attempt to block a vote on it.
The judge’s order is a major setback for new Republican Gov. Scott Walker and puts the future of the law in question.
Dane County Judge Maryann Sumi issued the order, which was requested by that county’s District Attorney Ismael Ozanne, a Democrat. Ozanne filed a lawsuit contending that a legislative committee that broke a stalemate that had kept the law in limbo for weeks met without the 24-hour notice required by Wisconsin’s open meetings law. The Republican-controlled Legislature passed the measure and Walker signed it last week.
Secretary of State Doug La Follette planned to publish the law on March 25, but the judge’s order will prevent that from happening, at least for now.
Assistant Attorney General Steven Means said the state will appeal the ruling, but he didn’t say when. Walker spokesman Cullen Werwie said in a statement that the governor was confident the bill would become law in the near future.
“This legislation is still working through the legal process,” Werwie said.
A spokesman for Republican Senate Majority Leader Scott Fitzgerald declined to comment, citing the ongoing legal fight.
Democrats were hopeful the ruling would lead to the undoing of the law.
“I would hope the Republicans would take this as an opportunity to sit down with Democrats and negotiate a proposal we could all get behind,” said Democratic Sen. Jon Erpenbach, of the 14 senators who stayed in Illinois for three weeks in an attempt to stop the bill from passing.
The bill was part of Walker’s solution for plugging a $137 million state budget shortfall. A part of the measure would require state workers to increase their health insurance and pension contributions to save the state $30 million by July 1. Other parts of Walker’s original proposal to address the budget shortfall were removed before the bill passed last week. The Legislature planned to take those up later. Lawmakers are not scheduled to be in session again until April 5.
People opposed to the law converged on the state Capitol over the past month with massive demonstrations that went on for more than three weeks.
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