Summary: The fall of gold accelerated last week with gold falling 9% against the dollar last week and 16% over the past two week. Commodities in general have been falling. We seem to be seeing the bursting of the commodities bubble due to the view that the world economy has not yet "decoupled" from the United States.

No doubt the easing of commodity inflation and the increase in industrial production in the U.S. is good news. The problem is that the root cause of the recent distress, the collapse of the housing market, shows no sign of letting up.

Summary: A comment on last week's SOTT Economic Commentary pointed out that four more U.S. banks had failed since the IndyMac run. I missed that news. Events get so strange and alarming that they become the new normal. Ho-hum another bank failure. Apparently I wasn't the only one because the mainstream media has been keeping this as quiet as possible.

And then, sure enough, on Friday night, the FDIC announced another bank failure.

While all the events in the banking crisis and the next Great Depression unfold, multinational corporations have quietly taken over core government functions in the United States, most alarmingly in the areas of war and intelligence. This may be one of the most important trends of the new century and probably has more ramifications than we can imagine - and we are probably past the point of no return...

Oh, the spectacle of it all -- and don't think I'm referring to those opening ceremonies in Beijing, where North Korean-style synchronization seemed to fuse with smiley-faced Walt Disney, or Michael Phelp's thrilling hunt for eight gold medals and Speedo's one million dollar "bonus," a modernized tribute to the ancient Greek tradition of amateurism in action. No, I'm thinking of the blitz of media coverage after Dr. Bruce Ivins, who worked at the U.S. Army Medical Research Institute of Infectious Diseases at Fort Detrick, Maryland, committed suicide by Tylenol on July 29th and the FBI promptly accused him of the anthrax attacks of September and October 2001.

In the process of editing blogs for a book on the birth of the Progressive Movement, I've come to the sobering realization that all the marches, demonstrations, forums and protests I've written about in the past five years have failed to change anything of consequence. It's as if no one ever warned, "If you attack Iraq, it will be a catastrophe." It's as if no one ever marched a million-strong, year after year, against the ongoing funding of the occupation of Iraq; as if no one ever contacted their congressperson or senator to voice their opposition to warrant-less wiretapping, torture, rendition or off-shore drilling; as if no one ever wrote against imprisoning Sami al Arian, denying habeas corpus to the Gtimo prisoners, or the shredding of our Constitution. It's as if scientists never proved humans are causing global warming and no one ever called for universal, single-payer healthcare. And most upsetting of all, it's as if all the Democratic candidates we worked so hard to get elected in Congress, have no idea why they were elected.